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HomeMy WebLinkAbout16 - Local Coastal Program Amendment Related to Short Term Lodging on Newport Island (PA2020-326)Q �EwPpRT O c — '9 TO: FROM: CITY OF NEWPORT BEACH City Council Staff Report April 13, 2021 Agenda Item No. 16 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Jaime Murillo, AICP, Principal Planner, jmurillo@newportbeachca.gov PHONE: 949-644-3209 TITLE: Resolution No. 2021-30: Local Coastal Program Amendment Related to Short Term Lodging on Newport Island (PA2020-326) ABSTRACT: For the City Council's consideration is an amendment to the Local Coastal Program Implementation Plan to update coastal zoning regulations limiting the issuance of short term lodging permits on any property located on Newport Island to a maximum of 20 permits. Furthermore, permit holders on Newport Island would only be allowed to rent out a unit for a short term if the dwelling units are located on an owner -occupied parcel and managed by the owner of the owner -occupied unit. Any existing permit holder of a unit that is not located on an owner -occupied parcel will be permitted to retain their permit for a maximum of one year following the effective date of the ordinance adopting the amendment. RECOMMENDATION: a) Conduct a public hearing; b) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 21065 of CEQA and State CEQA Guidelines Sections 15060 (c)(2), 15060 (c)(3), and 15378. The proposed action is also exempt pursuant to State CEQA Guidelines Section 15061(b)(3) because it has no potential to have a significant effect on the environment; and c) Adopt Resolution No. 2020-30, A Resolution of the City Council of the City of Newport Beach, California, Authorizing Submittal of Local Coastal Program Amendment No. LC2020-008 to the California Coastal Commission, an Amendment to Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code Related to Short Term Lodging on Newport Island (PA2020-326). DISCUSSION: Background Short term lodging is a dwelling unit that is rented or leased for a period of less than 30 consecutive calendar days. As of the date this report was written, the City of Newport Beach (City) has 1,450 active permits, which include 1,393 on coastal zone properties (96 percent) and 57 on non -coastal zone properties (4 percent). 16-1 Resolution No. 2021-30: Local Coastal Program Amendment Related to Short Term Lodging on Newport Island (PA2020-326) April 13, 2021 Page 2 The City initially regulated short term lodging by establishing Chapter 5.95 of the Newport Beach Municipal Code (NBMC) in 1992, which includes permitting requirements, standard operating conditions, and penalties. NBMC Chapter 5.95 was amended in 2004 when the City prohibited the establishment of short term lodging in the R-1 ("Single -Unit Residential") zoning district. In 2010, the City adopted a comprehensive update to the Zoning Code, which allowed short term lodging in most residential zoning districts (not the R-1 zone) and did not list short term lodging in mixed-use zones as allowed. Most Recent Changes Affecting Short Term Lodging Permits In January 2019, the City Council held a study session on short term lodging and later formed an Ad Hoc Committee (Committee) to review and recommend changes to the ordinance. The Committee included City Council Members Diane Dixon, Joy Brenner and Jeff Herdman. The Committee members hosted several community events and meetings to gain public input from residents and property owners, as well as property managers and agents. In February 2020, after the Committee made its recommendations and more public comments were submitted, the City Council tasked the Committee with refining its recommendations. While the Committee was working on honing its recommendations, the COVID-19 pandemic occurred, and the City Council adopted emergency ordinances to protect Newport Beach residents. In May 2020, the City Council adopted Emergency Ordinance Nos. 2020-003 and 2020-004, which prohibited the issuance of any new short term lodging permits and required a three -night minimum stay for all areas of the City, except for Newport Island where new rentals were prohibited. In June 2020, the City Council adopted Emergency Ordinance No. 2020-006 that required a four -night minimum stay on Newport Island. These requirements remain in effect until the end of the emergency period. At the June 23, 2020 City Council meeting, the Council introduced Ordinance No. 2020- 15, amending the City's short term lodging regulations provided in NBMC Chapter 5.95 (Short Term Lodging Permit). During the meeting, the City Council considered further input from the public on the proposed changes. In total, nine public meetings were held with the community, including three district town hall meetings. Each meeting allowed community input, including from owners of short term rental properties and residents living next to them. At the July 14, 2020, City Council meeting, the Council adopted Ordinance No. 2020-15, amending NBMC Chapter 5.95 (Attachment B). This ordinance was adopted in response to complaints about unlicensed units, noise, too many guests in one unit, shortage of available street parking, and improper use of trash containers at short term lodging units. Some of the changes adopted in the new ordinance require permit holders to post their permit number on all advertisements, register a local contact person with the City, limit the number of transient users that can stay overnight at a unit, comply with stricter noise standards, and provide transient users with a copy of a good neighbor policy. 16-2 Resolution No. 2021-30: Local Coastal Program Amendment Related to Short Term Lodging on Newport Island (PA2020-326) April 13, 2021 Page 3 At the October 13, 2020, City Council meeting, the Council adopted Ordinance No. 2020- 26, amending NBMC Chapter 5.95 (Attachment C). In addition, the Council adopted Resolution No. 2020-91 (Attachment D) authorizing submittal of Local Coastal Program Amendment No. LC2020-007 amending Title 21 (Implementation Plan of the Local Coastal Program) of the Newport Beach Municipal Code to the California Coastal Commission (CCC) to incorporate the minimum three -night stay requirement and maximum cap of 1,550 permits. The changes to Chapter 5.95 will not go into effect until Local Coastal Program Amendment No. LC2020-007 is approved by the CCC and subsequent adoption, including any modifications suggested by CCC, of an ordinance by the City Council. Initiation of Newport Island Amendments At the October 13, 2020, City Council meeting, after deliberation of Local Coastal Program Amendment No. LC2020-007 discussed above, the City Council recognized the unique setting of Newport Island and the more intensified impacts short term lodging units have on the residents of the small island. As a result, the City Council initiated another amendment to NBMC Title 21 (LCP Amendment) related to short term lodging on Newport Island by straw vote (Attachment E). The Council voted 6-1 to initiate an amendment that prohibits new permits on Newport Island and voted 5-2 to require short term lodging on Newport Island to transition to owner -occupied and owner -managed within one year of receiving California Coastal Commission approval of the required LCP Amendments. December 3, 2020, Planning Commission Review and Recommendation At the December 3, 2020, Planning Commission meeting, staff presented draft Code revisions to Title 21 (Local Coastal Program Implementation Plan) of the NBMC prohibiting new permits on Newport Island and requiring the transition of existing permits to owner -occupied and managed units as initiated by the City Council (Local Coastal Program Amendment No. LC2020-008). Extensive public comments were received, both in support of and against the proposed revisions. At the conclusion of the hearing, the Planning Commission adopted Resolution No. PC2020-044 (Attachment F) by a majority vote (5-1) recommending the City Council deny Local Coastal Program Amendment No. LC2020-008. The Planning Commission found that the proposed changes to Title 21 were premature and that enforcement of the recently adopted amendments to Chapter 5.95 pursuant to Ordinance No. 2020-15 by the City Council on July 14, 2020, may resolve many of the impacts that short term lodging units have on neighboring residents. Commissioners also expressed concerns with reduced limitations of property owner's rights and difficulty enforcing owner occupancy requirements. The Planning Commission draft meeting minutes are included as Attachment G. Removal from February 9, 2021, City Council Agenda and Recommended Revisions Staff originally scheduled this amendment for review on the February 9, 2021, City Council agenda. However, as a result of correspondence received from CCC staff raising concerns that the prohibition of short term lodging on Newport Island may impact public access and recreational opportunities, the item was pulled from the agenda to allow staff additional time to make necessary revisions. 16-3 Resolution No. 2021-30: Local Coastal Program Amendment Related to Short Term Lodging on Newport Island (PA2020-326) April 13, 2021 Page 4 During consultation with City staff, CCC staff recognized the unique geography and constraints on Newport Island; however, they suggested that an outright prohibition of permits would not be supported, but limiting the number of permits above current levels currently permitted may be supported. CCC staff also discussed that the CCC has recently been supportive of short term lodging regulations that include "home sharing" limitations, where a property owner or host provides lodging for guests in their residence while the host lives on the site, as an incidental use of the residence, for the duration of the short term rental period. The CCC recognizes that home share requirements prevent the erosion of the availability of housing stock within communities, prevents apartments from becoming de -facto hotels, and minimizes the alterations of the residential character of communities. Home sharing is similar to the City's proposed owner -occupied and owner -managed requirements for short term lodging permits on Newport Island. Based on the input received from CCC staff, the Ad Hoc Committee recommended revising the proposed amendment to limit short term lodging permits on Newport Island to a maximum of 20 permits that are owner -occupied and managed. Reestablishing Ad Hoc Committee At the March 23, 2021 City Council meeting, the City Council adopted Resolution No. 2021-24 reestablishing and extending the Ad Hoc Committee until June 30, 2022. The Ad Hoc Committee is comprised of City Council Members Diane Dixon, Joy Brenner, and Duffy Duffield and they will only focus on making recommendations related to Newport Island. The residents on Newport Island have requested two additional changes be made to the amendment. The changes are: 1) requiring one onsite parking space for each short term lodging unit bedroom; and 2) restricting the occupancy to each unit to two people per bedroom plus two people. Their suggested amendments will be incorporated into the proposed resolution for City Council consideration. Proposed Amendments to Title 21 (Local Coastal Program Implementation Plan) The primary regulatory framework for short term lodging is contained in Chapter 5.95 of the NBMC. However, it is classified as a visitor accommodation land use that provides lower cost access to the coast. As such, NBMC Section 21.48.115 of Title 21 currently includes general standards affecting the regulations of short term lodging in the coastal zone, including permitted locations. In order to limit short term lodging on Newport Island, an amendment to Title 21 is required. Amendments to the LCP must also be reviewed and approved by the City Council, with a recommendation from the Planning Commission, prior to submitting the amendment request to the California Coastal Commission. The California Coastal Commission's review and approval is required for any proposed amendment to the certified LCP. The proposed Local Coastal Program Amendment No. LC2020-008 (Attachment H) would modify Local Coastal Program Amendment No. LC2020-007, currently under review by the California Coastal Commission, to further regulate short term lodging on Newport Island in a manner that mitigates impacts on adjacent residents and public parking in an impacted area as follows: 16-4 Resolution No. 2021-30: Local Coastal Program Amendment Related to Short Term Lodging on Newport Island (PA2020-326) April 13, 2021 Page 5 Newport Island Housing Characteristics Newport Island is a unique, triangular-shaped island community surrounded by water channels on all sides and accessible via a single bridge. The Newport Island community consists of a total of 119 parcels zoned Two -Unit Residential (R-2), which could potentially allow up to two dwelling units per lot; however, the reality is 157 total dwelling units exist and more than 68 percent of the parcels (81 parcels) are developed with single - unit residences (Attachment 1). As such, the community is relatively low density and is more single-family in character than the underlying R-2 zoning suggests. The City prohibited short term lodging in R-1 zoning districts in 2004 due to the impacts they generated, and the same reasons generally apply on Newport Island given the single- family character. Short Term Lodging Impacts on Newport Island Prior to 2018, only three parcels (2 percent of the 157 total units) were utilized for short term lodging. In the last three years, there has been a significant increase (475 percent) in properties used for short term lodging with a total of 18 permits issued (11.5 percent of the 157 total units) on Newport Island. Newport Island is a residential area where dwelling units are primarily occupied by the property owner or long-term tenants and these more permanent residents are adversely impacted by the noise, traffic, refuse and demand for parking resulting from occupancy of short term lodging units. The overabundance of such visitors within Newport Island can sometimes adversely disrupt the quiet enjoyment of property and is changing the residential character of the neighborhood. On -street parking on Newport Island is heavily impacted due to the age of the community, which was originally subdivided in 1907. Newport Island primarily consists of older residences, which are nonconforming to current modern parking standards and narrow streets. As a result, Newport Island is one of a few neighborhoods with a residential parking permit program. Between May 15 and September 15, on -street parking is limited to residents and their guests (maximum of three permits per unit). Outside these peak summer months, parking is available to everyone, including visitors seeking public access to the water via nine street ends and a public park. With the proliferation of short term lodging units on the island, the number of transient users and their guests has increased the need for on -street parking that is in very short supply. This negatively impacts the community and impacts public safety because transient users and their guests park in red zones, in front of driveways blocking access to neighborhood homes, and interfering with emergency access. Limits on Permits — Maximum of 20 Permits on Newport Island After the effective date of the ordinance, the number of short term lodging permits would be limited to a maximum 20. The limit on new permits is needed to stem the tide of short term lodging operations on Newport Island and the associated impacts that come with said operations. Newport Island currently has 18 active short term lodging permits. The proposed 20 -unit cap will allow for a small expansion of permits beyond current limits, eliminating impacts to the availability of lower-cost visitor accommodations on Newport Island. 16-5 Resolution No. 2021-30: Local Coastal Program Amendment Related to Short Term Lodging on Newport Island (PA2020-326) April 13, 2021 Page 6 Requirement for On -Site Property Owners and Management Local Coastal Program Amendment No. LC2020-008 will require permit holders to be property owners that live on-site and directly manage the short term lodging unit(s). This includes property owners' that rent rooms for a short term duration within their respective dwellings, or owners of a duplex that reside in one unit and rent out the second unit for a short term duration. As illustrated in Table 1 below, of the 18 units currently permitted for short term lodging, it appears five are owner -occupied based on County Assessor Tax records where the property address and owner's mailing address match. A majority of these owner -occupied units are single-family dwellings. It is not clear if these owners rent rooms within their dwellings, rent their dwellings while away, or they are simply maintaining a license. The intent of requiring owners to live on-site and directly manage the rental units is to encourage greater responsibility and ability to quickly respond to complaints and disturbances from transient tenants. It also serves to protect the housing stock and prevent a substantial alteration of the residential character of the community. Table 1- Summary of Short Term Lodging Units on Newport Island Property Type Number of Number of Properties Licenses Number of Owner - Occupied Units Duplexes 7 10 1 Single -Family Dwellings 8 8 ` 4 Total 15 18 5 Phase -Out of Existing Short Term Lodging Permits If the amendment is adopted, the existing short term lodging permits that are not owner - occupied and managed would be permitted to remain active and transferable until one year following the effective date of the implementing ordinance. Following the one year, any existing permits would become void except for permit holders that are on-site property owners (owner -occupied properties) who directly manage their short term lodging units. However, the LCP Amendment requires submittal to the California Coastal Commission for review and approval prior to adoption, which generally takes one year to process through the CCC. If the CCC approves the Local Coastal Program Amendment No. LC2020-008, the City Council could then formally adopt the ordinance and the regulations would become effective one year after adoption. Therefore, the total transition period would effectively be approximately two years from now and is intended to allow existing permit holders adequate time to either sell their properties, find long-term tenants, or move into the property and manage the short term lodging unit. As proposed, a "dwelling unit, owner -occupied" means a dwelling unit that is occupied by a natural person who has at least a 25 percent ownership interest in the lot where one or more dwelling units are located or a 25 percent ownership interest in the entity that owns the lot where one or more of the dwelling units are located and who resides in a dwelling unit on the same lot, which is the person's legal domicile and permanent residence. 16-6 Resolution No. 2021-30: Local Coastal Program Amendment Related to Short Term Lodging on Newport Island (PA2020-326) April 13, 2021 Page 7 General Plan Consistency General Plan Land Use Policy LU 2.6 (Visitor Serving Uses): "provide[s] uses that serve visitors to Newport Beach's ocean, harbor, open spaces, and other recreational assets, while integrating them to protect neighborhoods and residents." The proposed amendment is consistent with this policy since it continues to allow short term lodging as a visitor -serving use district, while providing necessary protections for neighborhoods and residents. Local Coastal Program Consistency The City's certified Coastal Land Use Plan includes Policy 2.3.3-6 that provides: 2.3.3-6. Continue to issue short-term lodging permits for the rental of dwelling units as a means of providing lower-cost overnight visitor accommodations while continuing to prevent conditions leading to increase demand for City services and adverse impacts in residential areas and coastal resources. Newport Beach hosts a variety of styles of visitor accommodations, including hotels, motels, short term lodging units, and campground and RV sites. Short term lodging accounts for a significant amount (28 percent) of the visitor accommodations within the city. Staff believes that a 20 -permit limit on Newport Island will not result in a significant impact to public access as it would allow for a small expansion above the current 18 - permit level. Within the coastal zone, there are 4,737 properties located in coastal zoning districts that are eligible to allow short term rentals; outside the coastal zone there are 1,350 properties located in zoning districts that permit short term rentals. The current proposal to limit permits on Newport Island would negligibly affect only 2.5 percent of the eligible properties in the coastal zone. Furthermore, 4,086 hotel/motel rooms and approximately 471 campground/RV spaces are provided throughout the city, above and beyond short term lodging permits that would be ultimately capped at 1,550. As depicted on Coastal Access and Recreation Map 3-1 (Attachment J) of the Coastal Land Use Plan, Newport Island provides public beach access at nine street ends and the Newport Island Park. Limiting short term lodging on Newport Island will help alleviate the increased demand for on -street parking that short term lodging creates in the community, resulting in additional public parking opportunities for visitors accessing the coast at these public beach access points. It is staff's opinion that the proposed changes under this amendment are consistent with this policy as permits would continue to be issued within other two -unit and multi -unit zoning districts throughout the City and coastal zone, while limiting permits on Newport Island to address the adverse impacts they have on this unique island's residents and public access parking opportunities. FISCAL IMPACT: There is no fiscal impact related to this item. 16-7 Resolution No. 2021-30: Local Coastal Program Amendment Related to Short Term Lodging on Newport Island (PA2020-326) April 13, 2021 Page 8 ENVIRONMENTAL REVIEW: The ordinance and LCP Amendment are exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 21065 of CEQA and State CEQA Guidelines Sections 15060 (c)(2), 15060 (c)(3), and 15378. The proposed action is also exempt pursuant to State CEQA Guidelines Section 15061(b)(3) because it has no potential to have a significant effect on the environment. The proposed ordinance and amendment would decrease impacts to on -street parking and limit the number of short term lodging permits to minimize impacts to residential neighborhoods. Neither the ordinance nor amendment authorize development that would directly result in physical change to the environment. k 9110 10'reia Pursuant to Section 13515 of the California Code of Regulations, a review draft of the LCP Amendment was made available and a Notice of Availability was distributed on November 20, 2020, to all persons and agencies on the Notice of Availability mailing list including the Coastal Commission. In addition, notice of this hearing was published in the Daily Pilot, mailed to all Newport Island property owners and owners of property within 300 feet of the boundaries of Newport Island (excluding intervening rights-of-way and waterways), and posted on the 15 lots that currently maintain a short term lodging permit on Newport Island, at least 10 days before the scheduled meeting. The item also appeared on the agenda for this meeting, which was posted at City Hall and on the City website. ATTACHMENTS: Attachment A — Resolution No. 2021-30 (Title 21 Amendment) Attachment B — Ordinance No. 2020-15 Attachment C — Ordinance No. 2020-26 Attachment D — Resolution No. 2020-91 Attachment E — October 13, 2020, City Council Minutes Attachment F — Planning Commission Resolution No. PC2020-044 Attachment G — December 3, 2020 Planning Commission Minutes Attachment H — Title 21 Redline Attachment I — Newport Island Exhibit Attachment J — Coastal Access and Recreation Map 3-1 16-8 ATTACHMENT A RESOLUTION NO. 2021- 30 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING SUBMITTAL OF LOCAL COASTAL PROGRAM AMENDMENT NO. LC2020-008 TO THE CALIFORNIA COASTAL COMMISSION, AN AMENDMENT TO TITLE 21 (LOCAL COASTAL PROGRAM IMPLEMENTATION PLAN) OF THE NEWPORT BEACH MUNICIPAL CODE RELATED TO SHORT-TERM LODGING ON NEWPORT ISLAND (PA2020-326) WHEREAS, Section 200 of the City of Newport Beach ("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, Section 30500 of the California Public Resources Code requires each county and city to prepare a local coastal program ("LCP") for that portion of the coastal zone within its jurisdiction; WHEREAS, in 2005, the City adopted the City of Newport Beach Local Coastal Program Coastal Land Use Plan ("Local Coastal Program"), as amended from time to time including most recently on February 12, 2019, via Resolution No. 2019-16; WHEREAS, the California Coastal Commission effectively certified the City's Local Coastal Implementation Plan on January 13, 2017, and the City added Title 21 ("Local Coastal Program Implementation Plan") ("Title 21") to the City of Newport Beach Municipal Code ("NBMC") whereby the City assumed coastal development permit -issuing authority on January 30, 2017; WHEREAS, on October 13, 2020, after deliberation of Local Coastal Program Amendment No. LC 2020-007, the City Council initiated an amendment to Title 21 (Local Coastal Program Implementation Plan) ("LCP Amendment") related to short-term lodging on Newport Island; 16-9 Resolution No. 2021 - Page 2 of 8 WHEREAS, the LCP Amendment is consistent with the City of Newport Beach General Plan ("General Plan") including, but not limited to, General Plan Policy LU 2.6 (Visitor Serving Uses), which provides for "... uses that serve visitors to Newport Beach's ocean, harbor, open spaces, and other recreational assets, while integrating them to protect neighborhoods and residents" in that the LCP Amendment continues to allow short-term lodging as a visitor serving use, while providing necessary protections to the residents of Newport Island; WHEREAS, the LCP Amendment is consistent with the following policies of the Local Coastal Program: Policy 2.3.3-6: Continue to issue short-term lodging permits for the rental of dwelling units as a means of providing lower-cost overnight visitor accommodations while continuing to prevent conditions leading to increase demand for City services and adverse impacts in residential areas and coastal resources; and Policy 2.7-3: Continue to authorize short-term rental of dwelling units pursuant to permits and standard conditions that ensure the rentals will not interfere with public access and enjoyment of coastal resources; WHEREAS, the Newport Island community consists of a total of 119 parcels zoned Two -Unit Residential (R-2), which could potentially allow up to two dwelling units per lot; however, more than 68 percent of the parcels (81 parcels) are developed with single -unit residences, making the community relatively low density and more single-family in character; WHEREAS, prior to 2018, only 3 parcels (two percent (2%) of the 157 total units) were utilized for short-term lodging; WHEREAS, in the last three years, there has been a significant increase in properties used for short-term lodging, with a total of 18 short-term lodging permits issued, which equates to 11.5 percent of the total units on Newport Island; WHEREAS, Newport Island is a unique triangular-shaped island community surrounded by water channels on all sides and is only accessible via a single bridge; WHEREAS, given the limited access to and narrow streets on Newport Island, it is important to ensure that the number of short-term lodging units on the island is limited so that emergency personnel can properly respond to incidents without compromising the safety of Newport Island residents and visitors; WHEREAS, Newport Island was originally subdivided in 1907 and primarily consists of older residences that are nonconforming to current modern parking standards, impacting the limited on -street parking on Newport Island; 16-10 Resolution No. 2021 - Page 3 of 8 WHEREAS, on -street parking on Newport Island is further impacted by visitors seeking public access to the water via nine street ends and a public park; WHEREAS, the proliferation of short-term lodging units on Newport Island, which has increased the number of transient users, has exacerbated the need for on -street parking, negatively impacting the community and impacting public safety because transient users and their guests park in red zones, interfering with emergency access, and in front of driveways blocking access to neighborhood homes; WHEREAS, Newport Island is a residential area where dwelling units are primarily 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; WHEREAS, the presence of such visitors within Newport Island can sometimes adversely disrupt the quietude and residential character of the neighborhood; WHEREAS, the City has an interest in preserving its housing stock and the quality and character of the Newport Island residential community; WHEREAS, a telephonic public hearing was held by the Planning Commission on December 3, 2020, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California, observing restrictions due to the Declaration of a State Emergency and Proclamation of Local Emergency related to COVID-19. A notice of time, place and purpose of the public hearing was given in accordance with the California Government Code Section 54950 et seq. ("Ralph M. Brown Act"), and Chapter 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing; WHEREAS, at the hearing, the Planning Commission adopted Resolution No. PC2020-044 by a majority vote (6 ayes, 1 nays), thereby recommending the City Council deny Local Coastal Program Amendment No. LC2020-008; WHEREAS, a telephonic public hearing was held by the City Council on April 13, 2021, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California, observing restrictions due to the Declaration of a State Emergency and Proclamation of Local Emergency related to COVID-19. A notice of time, place and purpose of the public hearing was given in accordance with the California Government Code Section et seq. ("Ralph M. Brown Act"), and Chapter 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing; 16-11 Resolution No. 2021 - Page 4 of 8 WHEREAS, the City Council has reviewed and considered evidence and documentation attesting to the need to limit the number of short-term lodging permits on Newport Island; and WHEREAS, pursuant to Section 13515 of the California Code of Regulations Title 14, Division 5.5, Chapter 8, Subchapter 2, Article 5 ("Public Participation"), drafts of LCP Amendment No. LC2020-008 were made available and a Notice of Availability was distributed at least six (6) weeks prior to the City Council public hearing. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council authorizes staff to submit Local Coast Amendment No. LC2020-008, as set forth below, to the California Coastal Commission as an amendment to LC2020-007 previously submitted to the California Coastal Commission. Section 2: Amend Section 21.48.115 (Short -Term Lodging) of Chapter 21.48 (Standards for Specific Land Uses) of Title 21 (Local Coastal Program Implementation Plan) of the NBMC to repeal said section and replace it with the following: 21.48.115 Short -Term Lodging A. Purpose. This section provides standards for the operation of short-term lodging units to prevent over -burdening City services and adverse impacts on residential neighborhoods and on coastal access and resources. B. Permits. 1. No owner of a short-term lodging unit shall advertise for rent, or rent a lodging unit located within a residential district for a short term, without a valid short-term lodging permit for that unit, issued pursuant to Chapter 5.95. 2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95. 3. As set forth in Section 5.95.042, of Chapter 5.95, the maximum number of short-term lodging permits shall be limited to one thousand five hundred and fifty (1,550) permits at any time. If there are more than one thousand five hundred and fifty (1,550) valid permits that have been issued as of [EFFECTIVE DATE OF ORDINANCE NO. 2020-26], no new permit shall be issued to anyone on the waiting list, as described in Section 5.95.042 (D), until the total number of permits does not exceed the one thousand five hundred and fifty (1,550) limit. 16-12 Resolution No. 2021 - Page 5 of 8 4. In addition to the restriction set forth in Section 5.95.042 and subsection (13)(3), the maximum number of short-term lodging permits issued for units located on Newport Island (Map A-16), shall be limited to twenty (20) short-term lodging permits at any one time. If there are more than twenty (20) valid short-term lodging permits that have been issued as of the [EFFECTIVE DATE OF ORDINANCE], an owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95; however, no new permit shall be issued unless: (a) permits are available for issuance pursuant to Section 5.95.042 and subsection (13)(3); and (b) the total number of permits for units located on Newport Island does not exceed twenty (20). If the City has issued the maximum number of permits available for units on Newport Island, the City shall maintain a waiting list and follow the same procedures as set forth in Section 5.95.042 (D). For purposes of this subsection, the maximum number permits available will be calculated in the same manner as set forth in Chapter 5.95. 5. Permit holders on Newport Island shall only be allowed to rent a dwelling unit for a short-term if the dwelling unit is located on a lot with an owner -occupied dwelling unit that is managed by the owner of the owner -occupied dwelling unit. Any existing permit holder of a dwelling unit that is not located on an owner -occupied lot will be permitted to retain their permit until [ONE YEAR AFTER EFFECTIVE DATE OF ORDINANCE]. 6. No short-term lodging unit shall be permitted on any lot in the R-1 (Single - Unit Residential) Coastal Zoning District or any lot designated for single -unit dwelling land use as part of a planned community development plan, unless the short-term lodging unit was legally established on or before June 1, 2004. C. Operational Standards. The owner, or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit, shall comply with all federal, state, and local laws, rules, regulations and conditions of approval including, but not limited to, all short term lodging permit conditions, as set forth in Chapter 5.95. In addition, the owner, or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit, shall: 1. By written agreement, limit overnight occupancy of the short-term lodging unit to the maximum permitted by the Building Code and Fire Code. 2. Use best efforts to ensure that the transient user, 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 or federal law pertaining to noise, disorderly conduct, the consumption of alcohol, or the use of illegal drugs. 16-13 Resolution No. 2021 - Page 6 of 8 3. Upon notification that any transient user, occupant and/or guest of his or her short term lodging unit has created unreasonable noise or disturbances, engaged in disorderly conduct or committed violations of this Code or any state or federal 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 any transient user, occupant or guest. 4. Use best efforts to ensure compliance with applicable health and sanitation regulations relating to waste disposal. 5. Post a copy of any applicable permits and conditions in a conspicuous place within the unit. 6. Not rent, let, advertise for rent, or enter into an agreement for the rental of any lodging unit, for less than three (3) consecutive nights. 7. 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 section. Section 3: Amend Section 21.70.020 (Definitions of Specialized Terms and Phrases) of Chapter 21.70 (Definitions) of the NBMC to include the following definition: "Dwelling unit, owner -occupied" means a dwelling unit that is occupied by a natural person who has at least a twenty-five percent ownership interest in the lot where one or more dwelling units are located or a twenty five percent ownership interest in the entity that owns the lot where one or more of the dwelling units are located and who resides in a dwelling unit on the same lot, which is the person's legal domicile and permanent residence. Section 4: Amend Section 21.80.010 (Area Maps) of Chapter 21.80 (Maps) of the NBMC to include the following map: A-16 — Newport Island (PDF) 16-14 Rn aVF 5� a SK CHANNCL AL o-5 5� ?0111 Resolution No. 2021 - Page 7 of 8 O HOAG OR a COASTKIT by • u'�i 0 B -OA COVES A-16 Newport Island - DRAFT S� 7p�t'� �{ y pit �O m D u ur 2 a� tr � Af SHOkrST 2C�, ��•r5� W7, O CSO �S Section 5: LCP Amendment No. LC2020-008, shall be carried out in full conformance with the California Coastal Act of 1976 as set forth in the California Public Resources Code Section 30000 et seq. LCP Amendment No. LC2020-008 shall not become effective until approval by the Coastal Commission and adoption, including any modifications suggested by the Coastal Commission, by resolution(s) and/or ordinance(s) of the City Council. Section 6: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 16-15 Resolution No. 2021 - Page 8 of 8 Section 7: If any section, subsection, sentence, clause or phrase of this resolution 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 resolution. The City Council hereby declares that it would have passed this resolution, 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 8: The City Council finds the adoption of this resolution is not a project subject to the California Environmental Quality Act ("CEQA") in accordance with Section 21065 of the California Public Resources Code and Sections 15060 (c)(2), 15060 (c)(3), and 15378 of the California Code of Regulations Title 14, Division 6, Chapter 3 ("CEQA Guidelines"), because it has no potential for resulting in physical change to the environment, directly or indirectly. The proposed action is also exempt pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The LCP Amendment itself provides additional regulations on short-term lodging; but, since the use is already permitted, it does not authorize development that would directly result in physical change to the environment. Section 9: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 13th day of April, 2021 Brad Avery Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ORNEY'S OFFICE A ron C. Harp City Attorney 16-16 ATTACHMENT B Ordinance No. 2020-15 16-17 ORDINANCE NO. 2020-15 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING SECTION 3.16.060 AND CHAPTER 5.95 OF THE NEWPORT BEACH MUNICIPAL CODE RELATING TO SHORT TERM LODGING WHEREAS, Section 200 of the Charter of the City of Newport Beach ("City") vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, the City is a popular beach resort community that serves a large number of tourists during the summer months; WHEREAS, this influx of tourists' burdens City streets and services with heavy volume of vehicle traffic and heavy demand on parking, sewage, and refuse facilities, paramedics and police services; WHEREAS, the Police and Fire Departments frequently respond to complaints of noise disturbances, disorderly conduct and other illegal activity at short term lodging units; 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; WHEREAS, the presence of such visitors within the City's residential neighborhoods can sometimes disrupt the quietude and residential character of the neighborhoods and adversely affect the community; WHEREAS, the City has an interest in preserving its housing stock and the quality and character of its existing single and multi -family residential neighborhoods; WHEREAS, occupants of short term lodging units are generally not residents of the City and the City has limited ability to enforce provisions of the Newport Beach Municipal Code and the Penal Code related to disorderly conduct when violated by occupants of short term lodging units; 16-18 Ordinance No. 2020-15 Page 2 of 18 WHEREAS, on May 11, 1992, the City Council adopted Ordinance 92-13, establishing regulations for the operation of short term lodging units within residential zones to mitigate the impact of this use on the residents of the City; and WHEREAS, the City Council has reviewed and considered evidence and documentation attesting to the need to further regulate and control short term lodging units in residential zones to ensure that short term lodging units are regulated in a way to maintain harmony with surrounding uses and all transient occupancy taxes and visitor service fees are properly collected and remitted to the City. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: Section 3.16.060 of Chapter 3.16 of Title 3 of the Newport Beach Municipal Code is hereby amended to read as follows: 3.16.060 Registration of Hotel. Within thirty (30) days after commencing business each operator of any hotel renting occupancy to transients shall register the hotel with the Finance Director and obtain a "transient occupancy registration certificate" to be at all times posted in a conspicuous place on the premises. The certificate shall, among other things, state the following: A. The name of the operator; B. The address of the hotel; C. The date upon which the certificate was issued; and D. The following statement: This transient occupancy registration certificate signifies that the person named on the certificate has fulfilled the requirements of the Uniform Transient Occupancy Tax Ordinance (Chapter 3.16 of the Newport Beach Municipal Code) by registering with the Finance Director for the purpose of collecting the tax from transients and remitting the tax to the Finance Director. This certificate does not authorize any person to conduct any unlawful business, to conduct any lawful business in an unlawful manner or to operate a hotel without strictly complying with all local laws, including those requiring a permit from any board, commission, department or office of the City. This certificate does not constitute a permit. The requirements of this section shall not apply to the operator of a hotel required to obtain a short term lodging permit pursuant to Section 5.95.020. 16-19 Ordinance No. 2020-15 Page 3 of 18 Section 2: Chapter 5.95 of Title 5 of the Newport Beach Municipal Code is hereby amended to read as follows: Chapter 5.95 SHORT TERM LODGING PERMIT Sections: 5.95.005 Purpose and Findings. 5.95.010 Definitions. 5.95.015 Residential Properties Eligible for Short Term Lodging Permits. 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. 5.95.045 Conditions. 5.95.047 Violations of Permit Conditions by Transient User, Occupant or Guest. 5.95.050 Agent and Hosting Platform Responsibilities. 5.95.055 Issuance of Administrative Subpoenas. 5.95.060 Violations, Penalties and Enforcement. 5.95.065 Suspensions and Revocations. 5.95.070 Permits and Fees Not Exclusive. 5.95.080 License and Permit Closure. 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 increasing the demand for City services and creating adverse impacts in residential zones. B. Over a thousand dwelling units within residential zones near the City's beaches and harbor are rented for less than thirty (30) consecutive calendar days with the vast majority of those rentals occurring during the summer when the demand for parking and City services is the greatest. 16-20 Ordinance No. 2020-15 Page 4 of 18 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 this Code and the 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 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 lodging units overburdens and threatens the City's ability to provide necessary services. F. Many short term lodging units are operated by agents and/or absentee owners who exercise little or no supervision or control of occupants. G. There has been an increase in the number of lodging units booked on a short term basis where the owner of the unit does not have a short term lodging permit, affecting the ability of the City to properly regulate the impacts caused by the illegal operation. H. There has been an increase in the number of lodging units booked on a short term basis where the owner of the property has not taken steps to ensure the transient occupancy tax and visitor service fee is collected and/or remitted to the City, resulting in an unfair business advantage to these illegal operations and loss of revenue necessary to provide City services. I. Problems with short term lodgings is particularly acute in residential districts where the peace, safety and general welfare of the long term residents are threatened. J. To ensure the effective enforcement of this Code, it is necessary to have the owner include the short term lodging permit number issued by the City on all advertisements for a short term lodging unit so the transient user knows the owner is authorized to rent the lodging unit on a short term basis. K. To ensure the transient user knows the total cost associated with renting the lodging unit and to prevent fraud, it is necessary for the owner to make sure the transient user is informed of the amount of the transient occupancy tax and visitor service fee prior to completing a booking transaction. 16-21 Ordinance No. 2020-15 Page 5 of 18 L. The restrictions of this chapter are necessary to preserve the City's housing stock, the quality and character of the City's residential neighborhoods as well as 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. "Accessory dwelling unit" shall have the same definition as set forth in Chapter 20.70 of Title 20 of this Code. B. "Agent" shall mean any person who is authorized in writing by the owner to represent and act for an owner. C. "Booking transaction" shall mean any reservation or payment service provided by a person who facilitates a short term lodging rental transaction between a transient user and owner for the use of a unit for a period of less than thirty (30) consecutive calendar days. D. "City Manager" shall mean the City Manager of the City or his or her designee. E. "Finance Director" shall mean the Finance Director of the City or his or her designee. F. "Gross floor area," shall mean the area of the lodging unit that includes the surrounding exterior walls and any interior finished portion of a structure that is accessible and that measures more than six feet from finished floor to ceiling. Stairwells and elevator shafts above the first level shall be excluded from the calculation of gross floor area. G. "Home -sharing" shall mean an activity whereby the owner hosts a transient user in the owner's lodging unit, for compensation, for periods of less than thirty (30) consecutive calendar days, during which time the owner of the unit lives onsite, in the unit, throughout the transient user's stay and the owner, the transient user and any other occupants live together in the same unit as a single housekeeping unit. H. "Hosting platform" shall mean a person, other than an owner or agent, who participates in the short term lodging business by facilitating a booking transaction using any medium of facilitation. I. "Lodging unit" or "unit" shall mean a "dwelling unit" as that term is defined in Chapter 20.70, of Title 20 of this Code. An accessory dwelling unit shall not be considered a lodging unit or unit for purposes of this chapter. 16-22 Ordinance No. 2020-15 Page 6 of 18 J. "Owner" shall mean the person(s) that hold(s) legal and/or equitable title to the lodging unit. K. "Person" shall mean any individual and any form of business entity including, but not limited to, all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, business or common law trusts, societies, or limited liability companies. L. "Residential district" shall mean those areas of the City so designated by Title 20 of this Code as well as any other area in the City designated for a residential use as part of a Planned Community Development Plan, Specific Area Plan or Planned Residential District. M. "Short term" shall mean a lodging unit that is rented or leased as a single housekeeping unit for a period of less than thirty (30) consecutive calendar days. This also includes home -sharing. N. "Short term lodging unit registry" shall mean the published registry maintained by the City that sets forth a list of all owners and the address of all units that have a valid short term lodging permit and business license with the City, a copy of which is available, without charge, to any person who requests a copy and which shall be accessible on the City's website. O. "Single housekeeping unit" shall have the same definition as set forth in Chapter 20.70 of Title 20 of this Code. P. "Transient" or "Transient user" shall mean any person or persons who, for any period less than thirty (30) consecutive calendar days either at his or her own expense, or at the expense of another, obtains lodging in a lodging unit or the use of any lodging space in any unit, for which lodging or use of lodging space a charge is made. 5.95.015 Residential Properties Eligible for Short Term Lodging Permits. Only properties in a residential district that are authorized under Titles 20 and 21 of this Code and this chapter shall be eligible for a short term lodging permit. Subsequent to June 1, 2004, no annual permit shall be issued to or renewed for any dwelling unit on any parcel zoned for "Single-family Residential (R-1)" or that is designated for a single-family residential use as part of a Planned Community Development Plan, Specific Area Plan or Planned Residential District, unless a permit has previously been issued for that lodging unit and the permit was not subsequently revoked. 16-23 Ordinance No. 2020-15 Page 7 of 18 5.95.020 Permit Required. No owner of a lodging unit shall advertise for rent or rent a lodging unit located within a residential district for a short term without a valid short term lodging permit for that unit issued pursuant to this chapter. 5.95.025 Agency. An owner may retain an agent to comply with the requirements of this chapter, including, without limitation, the filing of an application for a short term lodging permit, the management of the short term lodging unit or units, and the compliance with the conditions to the short term lodging 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 an annual short term lodging permit, or renewal thereof, 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 short term lodging 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 a valid business license issued by the City for the separate business of operating a short term lodging unit or units. D. The number of bedrooms in the lodging unit. E. The gross floor area of the lodging unit. F. The number of parking spaces available onsite and a description indicating the location and size of each parking space. G. A nuisance response plan, which sets forth the owner's plan for handling disruptive guests. H. A certification that the applicant has reviewed the covenants, conditions and restrictions, if any, and a short term use is permitted at the location pursuant to the terms of the covenants, conditions and restrictions, if any. I. Acknowledgement of receipt and inspection of a copy of all regulations pertaining to the operation of a short term lodging unit. 16-24 Ordinance No. 2020-15 Page 8 of 18 J. Such other information as the Finance Director deems reasonably necessary to administer this chapter. 5.95.035 Denial of Permit. If permits are available for issuance, no application filed by an owner for an annual permit or renewal of a permit for a unit eligible to be used as a short term lodging unit, as provided for in Section 5.95.015 and this Code, shall be denied unless: the owner does not have a current valid business license; the owner has failed to pay transient occupancy tax, the visitor service fee, a penalty, a fine or inspection cost, due and owing to the City; the nuisance response plan is deemed inadequate by the Finance Director; or the short term lodging permit for the same unit and issued to the same owner has been revoked. 5.95.040 Filing Fee. An application or renewal 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 and for providing the answering service. 5.95.045 Conditions. A. All permits issued pursuant to this chapter are subject to the following standard conditions: 1. The owner shall prohibit a lessee of a lodging unit from renting the lodging unit to a transient user for a short term and from home -sharing. 2. The owner shall not rent a lodging unit to a transient user that is under the age of 21. 3. The owner shall enter into a written agreement with the transient user that requires: a. All persons residing in the short term lodging unit to live together as a single housekeeping unit; and b. Limits the overnight occupancy of the short term lodging unit to the maximum permitted by the Building Code and Fire Code. 4. The owner shall ensure that the transient user complies with all terms of the written agreement set forth in Subsection 5.95.045 A (3). 16-25 Ordinance No. 2020-15 Page 9 of 18 5. The owner shall use best efforts to ensure that the transient user, 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 or federal law pertaining to noise, disorderly conduct, the consumption of alcohol, or the use of illegal drugs. 6. The owner shall, upon notification that any transient user, occupant and/or guest of his or her short term lodging unit has created unreasonable noise or disturbances, engaged in disorderly conduct or committed violations of this Code or any state or federal 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 any transient user, occupant or guest. 7. The owner of the short term lodging unit shall use best efforts to ensure compliance with all the provisions of Title 6 of this Code. 8. The owner of the short term lodging unit shall provide the transient user with a copy of Sections 5.95.047, 10.28.007, 10.28.010, 10.28.020, 10.58.030, and 10.66.020 of this Code. 9. The owner of the short term lodging unit shall provide the transient user with a copy of the good neighbor policy created by the City and available on the City website, post a copy of the short term lodging permit and post a copy of the conditions set forth in this subsection in a conspicuous place within the unit. The notice shall be in substantial compliance with a template created by the City, which shall be available on the City website, and contain the following: a. The name of the local contact person(s) and phone number at which that person(s) may be reached on a twenty-four (24) hour basis. The local person(s) must be located within twenty-five (25) miles of the unit and shall respond to any call related to the unit within thirty (30) minutes; b. The number and location of onsite parking spaces; C. The street sweeping schedule for all public rights-of-way within three hundred (300) feet of the unit; d. The trash collection schedule for the unit, and the Code rules and regulations concerning the timing, storage and placement of trash containers and recycling requirements; e. Notification that no amplified sound or reproduced sound is allowed outside or audible from the property line between the hours of 10:00 p.m. and 10:00 a.m.; and 16-26 Ordinance No. 2020-15 Page 10 of 18 f. Notification that any transient user, occupant or guest is responsible for all activities occurring on the property and that any transient user, occupant or guest may be cited and fined for creating a disturbance or violating any provision of this Code. 10. 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 any transient user, occupant or guest from engaging in disorderly conduct or committing violations of this Code or state or federal law pertaining to noise, disorderly conduct, the consumption of alcohol or the use of illegal drugs. 11. The owner shall: a. Ensure that all transient occupancy taxes and visitor service fees are collected and remitted to the City and otherwise comply with all transient occupancy tax and visitor service fee requirements, as set forth in Chapters 3.16 and 3.28. b. If the owner uses an agent to collect and remit the transient occupancy tax and the visitor service fee, either voluntarily or as directed by the City, the owner shall be responsible for ensuring that the agent collects and remits the transient occupancy tax and the visitor service fee to the City pursuant to the requirements set forth in this chapter, Chapter 3.16 and Chapter 3.28. C. If the Finance Director directs, in writing, a hosting platform to collect and remit the transient occupancy tax and the visitor service fee, the owner shall: (i) be responsible for ensuring that the hosting platform collects and remits the transient occupancy tax and the visitor service fee to the City in accordance with this chapter; and (ii) when filing a return in accordance with Sections 3.16.070 and 3.28.040, the owner shall provide the City with a copy of all receipts showing the date the short term lodging unit was rented, the name of the hosting platform, the amount of transient occupancy tax and visitor service fee collected by the hosting platform, and proof that the transient occupancy tax and visitor service fee was remitted to the City. 12. The owner shall provide the City with the name and twenty-four (24) hour phone number of a local contact person(s) (who reside within twenty-five (25) miles of the property) who shall respond to contacts from the answering service, respond to any call related to the unit within thirty (30) minutes, and ensure compliance with this chapter in a timely manner. The owner or agent must provide a new local contact person and his or her phone number within five (5) business days, if there is a change in the local contact person(s). 16-27 Ordinance No. 2020-15 Page 11 of 18 13. The owner shall ensure that all available parking spaces onsite, which may include garage, carport, and driveway spaces, as well as tandem parking are available for the transient user, occupant or guest of the short term lodging unit. The owner shall disclose the number of parking spaces available onsite and shall inform the transient user, occupant and/or guest that street parking may not be available. 14. The owner shall maintain a valid business license and short term lodging permit when engaging in short term lodging. 15. The owner shall include the City issued short term lodging permit number on all advertisements for the rental of the short term lodging unit and shall ensure the transient user is informed of the amount of the transient occupancy tax and visitor service fee prior to completion of the booking transaction. 16. The owner shall ensure that a permitted short term lodging unit is only used for residential purposes and not used for non-residential uses, including, but not limited to, large commercial or non-commercial gatherings, commercial filming and/or non -owner wedding receptions. 17. The owner shall ensure that no amplified sound, or reproduced sound is used outside or audible from the property line between the hours of 10:00 p.m. and 10:00 a.m. and that the transient user does not violate the requirements set forth in this chapter, Chapters 10.28, 10.58 and 10.66. 18. The owner shall comply with the nuisance response plan submitted with the application for a short term lodging permit and approved by the Finance Director. 19. The owner shall allow the City to inspect the short term lodging unit to confirm the number of bedrooms, gross floor area, and number/availability of parking spaces, seven (7) calendar days after the City serves the owner with a request for inspection in accordance with Section 1.08.080. If, based on the inspection, it is determined that the information submitted to the City in accordance with Section 5.95.030 was false, in addition to any other remedy set forth in this chapter, the owner agrees that the owner shall be liable for the cost of conducting the inspection. 20. The owner shall provide the City with a copy of any written rental agreement(s) and the good neighbor policy, within seven (7) calendar days after the City serves the owner with a notice of request for written rental agreements and the good neighbor policy in accordance with Section 1.08.080. 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 chapter. 16-28 Ordinance No. 2020-15 Page 12 of 18 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 chapter subject to compliance with the procedures specified in Section 5.95.065. 5.95.047 Violations of Permit Conditions by Transient User, Occupant or Guest. In addition to other provisions of this Code, it shall be unlawful for any transient user, occupant or guest of a short term lodging unit to: A. Exceed the overnight occupancy limit designated for the short term lodging unit. B. Use street parking prior to utilizing all available onsite parking space(s) for the lodging unit. C. Place trash for collection in violation of this Code's rules and regulations concerning: 1. The timing, storage or placement of trash containers; or 2. Recycling requirements. D. Amplify or reproduce sound between the hours of 10:00 p.m. and 10:00 a.m.: 1. Outside of the lodging unit; or 2. That is audible from the property line for the lodging unit. E. Use the short term lodging for any non-residential purpose, including, but not limited to, large commercial or non-commercial gatherings, commercial filming and/or non -owner wedding receptions. 5.95.050 Agents and Hosting Platform Responsibilities. A. If directed to do so by the Finance Director, in writing, agents or hosting platforms shall: 1. Collect all applicable transient occupancy taxes and visitor service fees that are imposed on the transient, pursuant to Chapters 3.16 and 3.28, from the transient, or from the person paying for such rental, at the time payment for such rental is made; and 2. Remit to the City any transient occupancy taxes or visitor service fees collected by the hosting platform or agent to the City before the last day of the month following the close of each calendar quarter or on the day specified by the Finance Director if a different reporting period has been established. 16-29 Ordinance No. 2020-15 Page 13 of 18 Hosting platforms shall not collect or remit such taxes unless expressly authorized to do so by the Finance Director, in writing. Nothing in this subsection shall be deemed to relieve an operator, as that term is defined in Sections 3.16.020 and 3.28.010, from complying with the requirements set forth in Chapters 3.16 and 3.28 of this Code, or to interfere with the ability of an agent or hosting platform and an owner to enter into an agreement regarding fulfillment of the requirements of this subsection. B. Subject to applicable laws, agents and hosting platforms shall disclose to the City on a regular basis each home -sharing and vacation rental listing located in the City, the names of the persons responsible for each such listing, the address of each such listing, the length of stay for each such listing and the price paid for each stay. C. Agents and hosting platforms: 1. Shall prompt any person utilizing their advertising services to include the City -issued registration number in their listing(s), in a format designated by the City and shall not advertise any short term lodging unit where a registration number is not provided. Upon notice from the City that a listing is non-compliant, agents and hosting platforms shall cease any short-term rental booking transactions for said listing(s) within five (5) business days. An agent or hosting platform shall not complete any booking transaction for any short term lodging unit subject to a City notice that a unit is non- compliant, until notified by the City that the short term lodging unit follows the local registration requirement. 2. Shall not collect or receive a fee, directly or indirectly for facilitating or providing services ancillary to an unpermitted short term lodging unit including, but not limited to, insurance, concierge services, catering, restaurant bookings, tours, guide services, entertainment, cleaning, property management, or maintenance of the short term lodging unit. D. A hosting platform operating exclusively on the internet, which operates in compliance with subsection (A), (B), and (C) above, shall be presumed to be in compliance with this chapter, except that the hosting platform remains responsible for compliance with the administrative subpoena provisions of this chapter. E. The provisions of this section shall be interpreted in accordance with otherwise applicable state and federal law(s) and will not apply if determined by the City to be in violation of, or preempted by, such law(s). 16-30 Ordinance No. 2020-15 Page 14 of 18 5.95.055 Issuance of Administrative Subpoenas. The City Manager shall have the authority to issue and serve administrative subpoenas to the owner, agent or hosting platform, as necessary, to obtain specific information regarding short term rental listings located in the City, including but not limited to, the names of the persons responsible for each such listing, the address of each such listing, the length of stay for each such listing and the price paid for each stay, to determine whether the short term rental listing complies with this chapter. Any subpoena issued pursuant to this section shall not require the production of information sooner than thirty (30) calendar days from the date of service. A person that has been served with an administrative subpoena may seek judicial review during that thirty (30) calendar day period. Failure to respond to an administrative subpoena in accordance with the terms set forth therein shall be punishable in accordance with Section 5.95.060 and the City may file a judicial action to compel compliance with the subpoena. 5.95.060 Violations, Penalties and Enforcement. A. It shall be unlawful for any person to violate any provisions or to fail to comply with any of the requirements of this chapter. B. In addition to, or separate from, the foregoing criminal penalties, any person violating any of the provisions or failing to comply with any of the requirements of this chapter is subject to the issuance of an administrative citation pursuant to the provisions of Section 1.04.010(E) and Chapter 1.05. 5.95.065 Suspensions and Revocations. In addition to any fine or penalty that may be imposed pursuant to any provision of this Code including, but not limited to Section 5.95.060, a short term lodging permit for a unit may be suspended or revoked as provided in this section. A. Suspensions/Revocations. 1. Except as otherwise provided in this subsection, if any person violates any short term lodging permit condition two (2) or more times in any twelve (12) month period or any other provision of this Code, state law or federal law, two (2) or more times in any twelve (12) month period, and the violation relates in any way to the unit that has a short term lodging permit, the short term lodging permit for the unit may be suspended for a period of six (6) months in accordance with subsection (B). 2. In the case of a short term lodging permit for a unit that is located in a Safety Enhancement Zone, if there is a violation of any provision of this Code during the period that the Safety Enhancement Zone is in effect, the short term lodging permit for the unit may be suspended for a period of one (1) year or revoked in accordance with subsection (B). 16-31 Ordinance No. 2020-15 Page 15 of 18 3. If a lodging unit that is subject to a short term lodging permit has been the location of two or more loud or unruly gatherings, as defined in Chapter 10.66 of this Code, while the lodging unit was occupied on a short term basis, within any twenty-four (24) month period, the permit may be suspended for a period of one (1) year or revoked in accordance with the subsection (B). A loud or unruly gathering that occurred prior to the passage of fourteen (14) calendar days from the mailing of notice to the owner in compliance with Section 10.66.030(D) shall not be included within the calculation of the two or more loud or unruly gatherings required to revoke a short term lodging permit. 4. If a person violates Section 5.95.020 regarding any unit that has had a short term lodging permit suspended pursuant to subsection (B), the short term lodging permit for the unit may be revoked in accordance with subsection (B). 5. If any person violates any short term lodging permit condition or any other provision of this Code, state or federal law within six (6) months of having a previously suspended short term lodging permit reinstated for a unit, and the violation relates in any way to the unit that has the short term lodging permit, the short term lodging permit for the unit may be revoked in accordance with subsection (B). 6. If any person violates any short term lodging permit condition three (3) or more times in any twelve (12) month period or provision of this Code, state or federal law three (3) or more times in any twelve (12) month period, and the violation relates in any way to the unit that has a short term lodging permit, the short term lodging permit for the unit may be revoked in accordance with subsection (B). 7. If any person fails to collect and remit transient occupancy tax or the visitor service fee in accordance with the requirements of this chapter, Chapters 3.16 or 3.28 in regards to any unit that has a short term lodging permit, two (2) or more times within any thirty six (36) month period, the short term lodging permit for the unit may be revoked in accordance with subsection (B). 8. If any person is determined to have provided false information on an application for an annual short term lodging permit, or renewal thereof, the short term lodging permit for the unit may be revoked in accordance with subsection (B). B. Permits shall be suspended or revoked, only in the manner provided in this section. 16-32 Ordinance No. 2020-15 Page 16 of 18 1. The Finance Director shall investigate whenever he or she has reason to believe that an owner has submitted an application that contains false information or committed a violation of a permit condition, this Code, state or federal law related to a permitted unit. Such investigation may include, but is not limited to, on-site property inspections. Should the investigation reveal substantial evidence to support a finding that warrants a suspension or revocation of the short term lodging permit, the Finance Director shall issue written notice of intention to suspend or revoke the short term lodging permit. The written notice shall be served on the owner in accordance with Section 1.08.080, and shall specify the facts which, in the opinion of the Finance Director constitute substantial evidence to establish grounds for imposition of the suspension and/or revocation, and specify the proposed time the short term lodging permit shall be suspended and/or that the short term lodging permit shall be revoked within thirty (30) calendar days from the date the notice is given, unless the owner files with the Finance Director, before the suspension and/or revocation becomes effective, a request for hearing before a hearing officer, who shall be retained by the City, and pays the fee for the hearing established by resolution of the City Council. 2. If the owner requests a hearing and pays the hearing fee, established by resolution of the City Council, within the time specified in subsection (13)(1), the Finance Director shall serve written notice on the owner, pursuant to Section 1.08.080, setting forth the date, time and place for the hearing. The hearing shall be scheduled not less than fifteen (15) calendar days, nor more than sixty (60) calendar days, from the date on which notice of the hearing is served by the Finance Director. The hearing shall be conducted according to the rules normally applicable to administrative hearings. At the hearing, the hearing officer will preside over the hearing, take evidence and then submit proposed findings and recommendations to the City Manager. The City Manager shall suspend or revoke the short term lodging permit only upon a finding that a violation has been proven by a preponderance of the evidence, and that the suspension or revocation is consistent with the provisions of this section. The City Manager shall render a decision within thirty (30) calendar days of the hearing and the decision shall be final. C. If a short term lodging permit is suspended, it shall be the owner's responsibility to vacate any future bookings and remove all advertisements related to the short term rental of the unit during the term of the suspension. If a short term lodging permit is revoked, it shall be the owner's responsibility to vacate any future bookings and remove all advertisements related to the short term rental of the unit. D. After any suspension, the owner may reapply for reinstatement of the short term lodging permit which shall be processed in accordance with Section 5.95.030, provided the owner has paid the City all amounts owed the City in accordance with this chapter and Chapters 3.16 and 3.28 of this Code. 16-33 Ordinance No. 2020-15 Page 17 of 18 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 including, but not limited to, those provisions pertaining to the use and occupancy of the lodging unit or the property on which it is located as well as the collection and remittance of transient occupancy taxes and visitor service fees in accordance with this chapter and Chapters 3.16 and 3.28. 5.95.080 License and Permit Closure. A. Any owner that has ceased operating a short term lodging unit shall inform the Finance Director in writing of the date of the last rental, and having done such, the short term lodging permit shall be closed. The City will send a final transient occupancy tax and visitor service fee bill, which will be due and payable thirty (30) days from the date of the invoice. B. The Finance Director shall close any permit that has no short term lodging activity for a period of two consecutive years as evidenced by remitting zero dollars on the required transient occupancy tax and visitor service fee forms or has failed to return the transient occupancy and visitor service forms. After any permit closure pursuant to this subsection, the owner may reapply for reinstatement of the short term lodging permit which shall be processed in accordance with Section 5.95.030. Section 3: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 4: 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 5: 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. 16-34 Ordinance No. 2020-15 Page 18 of 18 Section 6: Except as expressly modified in this ordinance, all other Sections, Subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. Section 7: 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 become effective thirty (30) days after the adoption of this ordinance. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 23rd day of June, 2020, and adopted on the 14th day of July, 2020, by the following vote, to -wit: AYES: Mayor O'Neill Mayor Pro Tem Avery, Council Member Brenner Council Member Dixon, Council Member Duffield Council Member Herdman NAYS: Council Member Muldoon ABSENT: Council Member Duffy Duffield RECUSED: ATTEST: WILL O'NEILL, MAYOR APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE AARON C. HARP, CITY ATTORNEY 16-35 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. 2020-15 was duly introduced on the 231d day of June, 2020, at a regular meeting, and adopted by the City Council at a regular meeting duly held on the 141h day of July, 2020, and that the same was so passed and adopted by the following vote, to wit.- AYES: it: AYES: Mayor Will O'Neill, Mayor Pro Tem Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Jeff Herdman NAYS: Council Member Kevin Muldoon ABSENT: Council Member Duffy Duffield IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 151h day of July, 2020. Qc►r-oa/ da�iou*_ Leilani I. Brown, MM City Clerk City of Newport Beach, California CERTIFICATE OF PUBLICATION 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 Ordinance No. 2020-15 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: June 27, 2020 Adopted Ordinance: July 18, 2020 2020. r' - In witness whereof, I have hereunto subscribed my name this ' day of � W, 0� � CIFO'0' INV��• Leilani I. Brown, MMC City Clerk City of Newport Beach, California 16-36 ATTACHMENT C Ordinance No. 2020-26 16-37 ORDINANCE NO. 2020-26 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING PORTIONS OF CHAPTER 5.95 OF THE NEWPORT BEACH MUNICIPAL CODE RELATING TO SHORT TERM LODGING WHEREAS, Section 200 of the Charter of the City of Newport Beach ("City") vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, the City is a popular beach resort community that serves a large number of tourists during the summer months; WHEREAS, this influx of tourists' burdens City streets and services with heavy volume of vehicle traffic and heavy demand on parking, sewage, and refuse facilities, paramedics and police services; WHEREAS, the Police and Fire Departments frequently respond to complaints of noise disturbances, disorderly conduct and other illegal activity at short term lodging units; 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; WHEREAS, the presence of such visitors within the City's residential neighborhoods can sometimes disrupt the quietude and residential character of the neighborhoods and adversely affect the community; WHEREAS, the City has an interest in preserving its housing stock and the quality and character of its existing residential neighborhoods; WHEREAS, occupants of short term lodging units are generally not residents of the City and the City has limited ability to enforce provisions of the Newport Beach Municipal Code and the Penal Code related to disorderly conduct when violated by occupants of short term lodging units; 16-38 Ordinance No. 2020-26 Page 2 of 11 WHEREAS, requiring a three (3) night minimum stay has been shown to reduce the number of disturbances at short term lodging units, thereby reducing the demand on Police and Fire Department personnel; WHEREAS, the City has more short term lodging units than any other southern California city of a similar size, and limiting the number of short term lodging units will reduce the demand for City services, preserve the housing stock and quality and character of the City's neighborhoods; and WHEREAS, the City Council has reviewed and considered evidence and documentation attesting to the need to limit the number of short term lodging permits and further regulate and control short term lodging units in residential zones to ensure that short term lodging units are regulated in a way to maintain harmony with surrounding uses. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The table of contents for Chapter 5.95. of Title 5 of the Newport Beach Municipal Code is hereby amended to read as follows: Chapter 5.95 SHORT TERM LODGING PERMIT Sections: 5.95.005 Purpose and Findings. 5.95.010 Definitions. 5.95.015 Residential Properties Eligible for Short Term Lodging Permits. 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. 5.95.042 Maximum Number of Permits. 5.95.043 Transfer of Permit. 16-39 Ordinance No. 2020-26 Page 3 of 11 5.95.045 Conditions. 5.95.047 Violations of Permit Conditions by Transient User, Occupant or Guest. 5.95.050 Agents and Hosting Platform Responsibilities. 5.95.055 Issuance of Administrative Subpoenas. 5.95.060 Violations, Penalties and Enforcement. 5.95.065 Suspensions and Revocations. 5.95.070 Permits and Fees Not Exclusive. 5.95.080 License and Permit Closure. Section 2: Section 5.95.005, Subsection (L), of Chapter 5.95. of Title 5 of the Newport Beach Municipal Code is hereby amended to read as follows: L. The restrictions of this chapter are necessary to preserve the City's housing stock, the quality and character of the City's residential neighborhoods as well as to prevent and address the impacts on residential neighborhoods posed by short term lodgings. Section 3: Section 5.95.025, of Chapter 5.95. of Title 5 of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.025 Agency. An owner may retain an agent to comply with the requirements of this chapter, including, without limitation, the filing of an application for an annual permit, the renewal of a permit, the reinstatement of a permit or the transfer of a permit; the management of the short term lodging unit or units; and the compliance with the short term lodging permit conditions. 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. Section 4: Section 5.95.030, of Chapter 5.95. of Title 5 of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.030 Application for Permit. An application for an annual short term lodging permit, renewal of a short term lodging permit, reinstatement of a short term lodging permit or transfer of a short term lodging permit shall be filed with the Finance Director upon forms provided by the City. 16-40 Ordinance No. 2020-26 Page 4 of 11 A. An application for a new permit, renewal permit, the reinstatement of a permit or the transfer of a permit shall contain the following information: 1. The name, address and telephone number of the owner of the unit for which the short term lodging permit is to be issued. 2. The name, address and telephone number of the agent, if any, of the owner of the unit. 3. Evidence of a valid business license issued by the City for the separate business of operating a short term lodging unit or units. 4. The number of bedrooms in the lodging unit. 5. The gross floor area of the lodging unit. 6. The number of parking spaces available on site and a description indicating the location and size of each parking space. 7. A nuisance response plan, which sets forth the owner's plan for handling disruptive transient users. 8. A certification that the applicant has reviewed the covenants, conditions and restrictions, if any, and a short term use is permitted at the location pursuant to the terms of the covenants, conditions and restrictions, if any. 9. Acknowledgement of receipt and inspection of a copy of all regulations pertaining to the operation of a short term lodging unit. 10. Such other information as the Finance Director deems reasonably necessary to administer this chapter. B. An application for the renewal of a short term lodging permit shall be filed within thirty (30) calendar days of the short term lodging permit's expiration, or the short term lodging permit shall be deemed abandoned. C. An application for the reinstatement of a short term lodging permit closed by the Finance Director pursuant to Section 5.95.080, shall be filed within thirty (30) calendar days of the date the permit was closed by the Finance Director, or the short term lodging permit shall be deemed abandoned. 16-41 Ordinance No. 2020-26 Page 5 of 11 D. An application for the reinstatement of a previously suspended short term lodging permit, shall be filed within thirty (30) calendar days of the end of the suspension period, or the short term lodging permit shall be deemed abandoned. E. If any application is deemed incomplete, which shall be determined in the sole discretion of the Finance Director, the application shall be completed within thirty (30) calendar days of the service of notice that the application is incomplete, which shall be served in accordance with Section 1.08.080, or the application and any associated permit shall be deemed abandoned. F. If good causes exist, as determined in the sole discretion of the Finance Director, the Finance Director may extend the deadlines set forth in Subsections (B) through (E). G. For purposes of calculating the maximum number of permits under Section 5.95.042, a short term lodging permit shall be deemed valid until the applicable permit has been deemed abandoned. Section 5: Section 5.95.035, of Chapter 5.95. of Title 5 of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.035 Denial of Permit. If permits are available for issuance, no timely application filed by an owner for an annual permit, renewal of a permit, reinstatement of a permit or transfer of a permit for a unit eligible to be used as a short term lodging unit, as provided for in Section 5.95.015 and this Code, shall be denied unless: the owner does not have a current valid business license; the owner has failed to pay transient occupancy tax, the visitor service fee, a penalty, a fine or inspection cost, due and owing to the City; the nuisance response plan is deemed inadequate by the Finance Director; or the short term lodging permit for the same unit and issued to the same owner has been revoked. Section 6: Section 5.95.040, of Chapter 5.95. of Title 5 of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.040 Filing Fee. An application for a new annual permit, the renewal of an existing permit, the reinstatement of a permit, or the transfer of a 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 and for providing the answering service. 16-42 Ordinance No. 2020-26 Page 6 of 11 Section 7: Section 5.95.042 of Chapter 5.95. of Title 5 of the Newport Beach Municipal Code is hereby added to read as follows: 5.95.042 Maximum Number of Permits. A. The maximum number of short term lodging permits shall be limited to fifteen hundred and fifty (1,550) permits at any time. If there are more than fifteen hundred and fifty (1,550) valid permits that have been issued as of the effective date of this section, an owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of this chapter; however, no new permit shall be issued to anyone on the waiting list, as described in Subsection (D), until the total number of permits does not exceed the fifteen hundred and fifty (1,550). For purposes of calculating the maximum number of permits available, a permit shall be deemed valid and unavailable until it is abandoned in accordance with Section 5.95.030, (B) through (F), and/or Section 5.95.043 (B). B. An owner who has a short term lodging permit or an owner seeking to reinstate a short term lodging permit, that has not been abandoned in accordance with Section 5.95.030 (B) through (F), shall have priority to renew or reinstate the permit over anyone on the waiting list, as described in Subsection (D). C. An owner seeking to transfer a valid short term lodging permit, that files an application within the timeframes set forth in Section 5.95.043 (A), shall have priority to transfer the permit over anyone on the waiting list, as described in Subsection (D). D. If the City has issued the maximum number of permits available, the City shall maintain a waiting list. An application for placement on the waiting list shall be submitted to the Finance Director, on a form approved by the Finance Director, and shall be accompanied by a fee established by resolution of the City Council. In the event a short term lodging permit becomes available, the Finance Director shall notify the person or persons next in order on the waiting list. The notice shall specify that applications will be accepted for ten (10) calendar days after the date of the notice, and that failure to apply within the ten (10) calendar day period shall result in removal of the person or persons receiving notice from the waiting list. Notice shall be deemed given when deposited in the United States mail, with the first class postage prepaid, and addressed as specified by the person or persons on the waiting list. The City shall not be liable for a failure to notify any person or persons on the waiting list since placement on the list does not create any property right in any person or persons on the list nor any contractual obligation on the part of the City. 16-43 Ordinance No. 2020-26 Page 7 of 11 Section 8: Section 5.95.043, of Chapter 5.95. of Title 5 of the Newport Beach Municipal Code is hereby added to read as follows.- 5.95.043 ollows: 5.95.043 Transfer of Permit. A. A short term lodging permit that is valid and has not been abandoned in accordance with Section 5.95.030 (B) through (F), may be transferred to any of the following: 1. If the owner transfers the ownership of the lodging unit to an inter vivos trust, family trust, or other similar type of trust estate, a valid short term lodging permit may be transferred to the inter vivos trust, family trust, or other similar type of trust estate, if an application to transfer a valid permit, in accordance with Section 5.95.030, is filed within three hundred and sixty-five (365) days of the date title is transferred to the inter vivos trust, family trust, or other similar type of trust estate. 2. If the owner transfers the ownership of the lodging unit to a corporation, limited liability company, partnership, limited partnership, or similar business entity, a valid short term lodging permit may be transferred to the business entity, if an application to transfer a valid permit, in accordance with Section 5.95.030, is filed within three hundred and sixty-five (365) days of the date title is transferred to the business entity. 3. If the owner transfers the ownership of the lodging unit to an immediate family member, which shall include a spouse, domestic partner, child, stepchild, grandchild, parent, stepparent, mother-in-law, father-in-law, son-in-law, daughter-in-law, grandparent, great grandparent, brother, sister, half-brother, half-sister, stepsibling, brother-in-law, sister-in-law, aunt, uncle, niece, nephew, or first cousin (that is, a child of an aunt or uncle), a valid short term lodging permit may be transferred to the immediate family member, if an application to transfer a valid permit, in accordance with Section 5.95.030, is filed within three hundred and sixty-five (365) days of the date title is transferred to the immediate family member. 4. If the owner sells the lodging unit to a bona fide purchaser for value, a valid short term lodging permit may be transferred to the purchaser, if an application to transfer a valid permit, is filed in accordance with Section 5.95.030, within sixty (60) days of the date title is transferred to the purchaser. 16-44 Ordinance No. 2020-26 Page 8 of 11 5. If the owner is deceased, the short term lodging permit for the short term lodging unit may be transferred to the heir(s) once the estate is closed and the assets distributed, if an application to transfer a valid permit, is filed in accordance with Section 5.95.030, within ninety (90) days of the date the heir(s) becomes the owner of the short term lodging unit. B. The deadlines set forth in Subsection (A) are established for purposes of setting deadlines for the transfer of a valid permit that has not been deemed abandoned in accordance with Section 5.95.030 (B) through (F). The deadlines set forth in Section A shall not extend the deadlines set forth in or in accordance with Section 5.95.030 (B) through (F). Authorization to transfer a valid short term lodging permit shall be deemed waived and the permit abandoned if an application is not filed to transfer a permit in accordance with the deadlines set forth in this section. Section 9: Section 5.95.045, Subsection (A), (2), of Chapter 5.95. of Title 5 of the Newport Beach Municipal Code is hereby amended to read as follows: 2. The owner shall not rent a lodging unit to a transient user that is under the age of twenty-five (25). Section 10: Section 5.95.045, Subsection (A), of Chapter 5.95. of Title 5 of the Newport Beach Municipal Code is hereby amended to add conditions numbers twenty- one (21) through twenty-three (23), which shall read as follows: 21. Neither an owner or the owner's agent shall rent, let, advertise for rent, or enter into an agreement for the rental of any lodging unit, for less than three (3) consecutive nights. 22. The owner shall: a. Require every transient user and guest of the transient user to comply with all state and local laws that regulate parking while staying at or visiting the short term lodging unit; b. Require every transient user to provide the owner with the license plate number for all vehicles, which are used by the transient user or the transient user's guest while staying at or visiting the short term lodging unit; and 16-45 Ordinance No. 2020-26 Page 9 of 11 C. Provide the City with the vehicle license plate number(s) for every vehicle, which were used by the transient user or the transient user's guest while staying at or visiting the short term lodging, within seven calendar days after the City serves the owner with a notice of request for the vehicle license plate number(s) in accordance with Section 1.08.080. 23. The owner shall ensure that any transient user or transient user's guest complies with all state and local laws that regulate parking while the transient user or transient user's guest is staying at or visiting the short term lodging unit. For purposes of this condition, a transient user or transient user's guest shall be presumed to be staying at or visiting a short term lodging unit if a parking citation is issued to the transient user or the transient user's guest within one hundred (100) feet of the property line of the short term lodging unit during the time the transient user is renting the short term lodging unit. Section 11: Section 5.95.047, of Chapter 5.95. of Title 5 of the Newport Beach Municipal Code is hereby amended to read as follows: 5.95.047 Violations of Permit Conditions by Transient User, Occupant or Guest. A. In addition to other provisions of this Code, it shall be unlawful for any transient user, occupant or guest of a short term lodging unit to: 1. Exceed the overnight occupancy limit designated for the short term lodging unit. 2. Use street parking prior to utilizing all available on-site parking space(s) for the lodging unit. 3. Place trash for collection in violation of this Code's rules and regulations concerning: a.m.: a. The timing, storage or placement of trash containers; or b. Recycling requirements. 4. Amplify or reproduce sound between the hours of 10:00 p.m. and 10:00 a. Outside of the lodging unit; or b. That is audible from the property line for the lodging unit. 16-46 Ordinance No. 2020-26 Page 10 of 11 5. Use the short term lodging for any nonresidential purpose, including, but not limited to, large commercial or noncommercial gatherings, commercial filming and/or nonowner wedding receptions. 6. Rent a lodging unit to any person for a short term. B. In addition to other provisions of this Code, it shall be unlawful for any lessee to rent a lodging unit to any transient user for a short term. Section 12: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 13: 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 14: 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 15: Except as expressly modified in this ordinance, all other Sections, Subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. Section 16: 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. Section 9, the portion of Section 10, which adds Subsections 22 and 23 to Section 5.95.045, Chapter 5.95. of Title 5, and Section 11, of this ordinance, shall become effective thirty (30) calendar days after its adoption. Sections 1 through 8 and the portion of Section 10, which adds Subsection 21, to Section 5.95.045, Chapter 5.95. of Title 5, of this ordinance, shall become final and effective upon the effective date of approval by the California Coastal Commission of LC2020-007 and adoption, including any modifications suggested by the California Coastal Commission, by resolution(s) and/or ordinance(s) of the City Council. 16-47 Ordinance No. 2020-26 Page 11 of 11 This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 13th day of October, 2020, and adopted on the 27th day of October, 2020, by the following vote, to -wit: AYES: Mayor Pro Tem AveryCouncil Member Brenner Council Member Dixon Council Member Herdman NAYS: Mayor O'Neill, Council Member Duffield Council Member Muldoon ABSENT: ATTEST: '-I bTY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE AARON C. HARP, CITY A TORNEY 16-48 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. 2020-26 was duly introduced on the 131h day of October, 2020, at a regular meeting, and adopted by the City Council at a regular meeting duly held on the 27th day of October, 2020, and that the same was so passed and adopted by the following vote, to wit: AYES: Mayor Pro Tem Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Jeff Herdman NAYS: Mayor Will O'Neill, Council Member Duffy Duffield, Council Member Kevin Muldoon IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 28th day of October, 2020. r Leif i 04(rown, MMC City Clerk City of Newport Beach, California CERTIFICATE OF PUBLICATION 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 Ordinance No. 2020-26 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: October 17, 2020 Adopted Ordinance: October 31, 2020 I�; In witness whereof, I have hereunto subscribed my name this day of V� 2020. Ail Leilani I. Brown, MMC City Clerk City of Newport Beach, California 16-49 ATTACHMENT D Resolution No. 2020-91 16-50 RESOLUTION NO. 2020-91 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING SUBMITTAL OF LOCAL COASTAL PROGRAM AMENDMENT NO. LC2020-007 TO THE CALIFORNIA COASTAL COMMISSION, AN AMENDMENT TO TITLE 21 (LOCAL COASTAL PROGRAM IMPLEMENTATION PLAN) OF THE NEWPORT BEACH MUNICIPAL CODE RELATED TO SHORT-TERM LODGING (PA2020-048) WHEREAS, Section 200 of the City of Newport Beach ("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 City is a popular beach resort community that serves a large number of tourists during the summer months. To accommodate this large influx, the City has in excess of 4,000 hotel/motel rooms and 1,500 short-term lodging units; WHEREAS, this influx of tourists' burdens City streets and services with heavy volume of vehicle traffic and heavy demand on parking, sewage, and refuse facilities, paramedics and police services; WHEREAS, a survey conducted by the City of permitted short-term lodging within 52 communities that are located in Orange County and coastal regions of Los Angeles and San Diego counties has shown that the City has the third highest concentration of short-term lodging units, exceeding 177 short-term lodging units per 10,000 residents; WHEREAS, the Police and Fire Departments frequently respond to complaints of noise disturbances, disorderly conduct and other illegal activity at short-term lodging units; 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; WHEREAS, the presence of such visitors within the City's residential neighborhoods can sometimes disrupt the quietude and residential character of the neighborhoods and adversely affect the community; 16-51 Resolution No. 2020-91 Page 2 of 6 WHEREAS, approximately 3.4 percent of the City's housing stock is utilized for short-term lodging units; WHEREAS, the City has an interest in preserving its housing stock and the quality and character of its existing residential neighborhoods; WHEREAS, the City has more short term lodging units than any other southern California city of a similar size, and limiting the number of short term lodging units will reduce the demand for City services, preserve the housing stock and quality and character of the City's neighborhoods; WHEREAS, occupants of short term lodging units are generally not residents of the City and the City has limited ability to enforce provisions of the Newport Beach Municipal Code and the Penal Code related to disorderly conduct when violated by occupants of short term lodging units; WHEREAS, requiring a three (3) night minimum stay has been shown to reduce the number of disturbances at short term lodging units, thereby reducing the demand on Police and Fire Department personnel; WHEREAS, establishing a maximum cap of 1,550 permits accommodates a minor expansion of the City's short-term lodging capacity, while guarding against future impacts that unregulated expansion would create; WHEREAS, the City Council has reviewed and considered evidence and documentation attesting to the need to limit the number of short term lodging permits and further regulate and control short term lodging units in residential zones to ensure that short term lodging units are regulated in a way to maintain harmony with surrounding uses; WHEREAS, a telephonic public hearing was held by the Planning Commission on July 23, 2020, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California, due to the Declaration of a State Emergency and Proclamation of Local Emergency related to COVID-19. A notice of time, place, and purpose of the public hearing was given in accordance with Government Code Section 54950 et seq. ("Ralph M. Brown Act") and Chapter 21.62 (Public Hearings) of the Newport Beach Municipal Code ("NBMC"). Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing. WHEREAS, Local Coastal Program Amendment No. LC2020-007, as drafted at the time, included more restrictive proposed standards, including prohibiting the issuance of any new short-term lodging permits and establishing a minimum six (6) night stay for non owner -occupied units. 16-52 Resolution No. 2020-91 Page 3 of 6 WHEREAS, at the hearing, the Planning Commission adopted Resolution No. PC2020-027 by a majority vote (4 ayes, 2 nayes), thereby recommending the City Council deny Local Coastal Program Amendment No. LC2020-007; WHEREAS, a telephonic study session was held by the City Council on September 8, 2020, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California, due to the Declaration of a State Emergency and Proclamation of Local Emergency related to COVID-19 to discuss short-term lodging in the City; WHEREAS, a telephonic public hearing was held by the City Council on October 13, 2020, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California, due to the Declaration of a State Emergency and Proclamation of Local Emergency related to COVID-19. A notice of time, place and purpose of the public hearings was given in accordance with the Ralph M. Brown Act, and Chapter 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at these public hearings; and WHEREAS, pursuant to Section 13515 of the California Code of Regulations Title 14, Division 5.5, Chapter 8, Subchapter 2, Article 5 ("Public Participation"), drafts of LCP Amendment No. LC2020-007 were made available and a Notice of Availability was distributed at least six (6) weeks prior to the City Council public hearing. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council authorizes staff to submit Local Coast Amendment No. LC2020-007, as set forth below, to the California Coastal Commission. Section 2: The row entitled "Short -Term Lodging" set forth in Table 21.18-1 (Allowed Uses) in Section 21.18.020(C) (Residential Coastal Zoning Districts Land Uses) of Chapter 21.18 (Residential Coastal Zoning Districts (R -A, R-1, R -BI, R-2, and RM)) of Title 21 (Local Coastal Program Implementation Plan) of the NBMC is amended to read as follows: 16-53 Resolution No. 2020-91 Page 4 of 6 Land Use R -BI R-1 R-2 RM R-1- R-2- RM - R -A 6,000 6,000 6,000 Specific Use Regulations P ps 4... M_...:c° ,,,r:. --€s.c '�v h_ .< 1 x._.:,..,.m3.sT,.. a � ....:. �..� ... <. ._. - Short -Term Lodging — — A A Chapter 5.95 and Section 21.48.115 Section 3: Section 21.48.115 (Short-term Lodging) of Chapter 21.48 (Standards for Specific Land Uses) of Title 21 (Local Coastal Program Implementation Plan) of the NBMC is repealed and replaced with the following: 21.48.115 Short -Term Lodging. A. Purpose. This section provides standards for the operation of short-term lodging units to prevent over -burdening City services and adverse impacts on residential neighborhoods and on coastal access and resources. B. Zoning Districts and Planned Communities. No short-term lodging unit shall be permitted on any parcel in the R-1 (Single -Unit Residential) Coastal Zoning District or any parcel designated for single -unit dwelling land use as part of a planned community development plan, unless the short-term lodging unit was legally established on or before June 1, 2004. C. Permits. No owner of a short term lodging unit shall advertise for rent or rent a lodging unit located within a residential district for a short term without a valid short term lodging permit for that unit issued pursuant Chapter 5.95. As set forth in Section 5.95.042, of Chapter 5.95, the maximum number of short term lodging permits shall be limited to fifteen hundred and fifty (1,550) permits at any time. If there are more than fifteen hundred and fifty (1,550) valid permits that have been issued as of the effective date of this section, an owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95; however, no new permit shall be issued to anyone on the waiting list, as described in Section 5.95.043 (D), until the total number of permits does not exceed the fifteen hundred and fifty (1,550). D. Operational Standards. The owner, or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit, shall comply with all federal, state, and local laws, rules, regulations and conditions of approval including, but not limited to, all short term lodging permit conditions set forth in Chapter 5.95. In addition, the owner, or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit, shall: 16-54 Resolution No. 2020-91 Page 5 of 6 1. By written agreement, limit overnight occupancy of the short-term lodging unit to the maximum permitted by the Building Code and Fire Code. 2. Use best efforts to ensure that the transient user, 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 or federal law pertaining to noise, disorderly conduct, the consumption of alcohol, or the use of illegal drugs. 3. Upon notification that any transient user, occupant and/or guest of his or her short term lodging unit has created unreasonable noise or disturbances, engaged in disorderly conduct or committed violations of this Code or any state or federal 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 any transient user, occupant or guest. 4. Use best efforts to ensure compliance with applicable health and sanitation regulations relating to waste disposal. 5. Post a copy of any applicable permits and conditions in a conspicuous place within the unit. 6. Not rent, let, advertise for rent, or enter into an agreement for the rental of any lodging unit, for less than three (3) consecutive nights. 7. 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 section. Section 4: LCP Amendment No. LC2020-007, shall be carried out in full conformance with the California Coastal Act of 1976 as set forth in the California Public Resources Code Section 30000 et seq. LCP Amendment No. LC2020-007 shall not become effective until approval by the Coastal Commission and adoption, including any modifications suggested by the Coastal Commission, by resolution(s) and/or ordinance(s) of the City Council. Section 5: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 16-55 Resolution No. 2020-91 Page 6 of 6 Section 6: If any section, subsection, sentence, clause or phrase of this resolution 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 resolution. The City Council hereby declares that it would have passed this resolution, 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 7: The City Council finds the adoption of this resolution is not a project subject to the California Environmental Quality Act ("CEQA") in accordance with Section 21065 of the California Public Resources Code and Sections 15060 (c)(2), 15060 (c)(3), and 15378 of the California Code of Regulations Title 14, Division 6, Chapter 3 ("CEQA Guidelines"). The proposed action is also exempt pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The LCP Amendment itself provides additional regulations on short-term lodging; but, since the use is already permitted, it does not authorize development that would directly result in physical change to the environment. Section 8: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 131h day of October, 2020 Will O'Neill Mayor ATTEST: _c N WOW 04C Leilani I. Brown City Clerk` JR()ON IA - APPROVED AS TO FORM: CITY TTORNEY'S OFFICE " ( , V"', Aaron'C. Harp City Attorney 16-56 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; the foregoing resolution, being Resolution No. 2020-91, was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 13th day of October, 2020; and the same was so passed and adopted by the following vote, to wit: AYES: Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Jeff Herdman NAYS: Mayor Will O'Neill, Mayor Pro Tem Brad Avery, Council Member Kevin Muldoon IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 141h day of October, 2020. 6c &YJK- Leilani I. Brown City Clerk is 16-57 ATTACHMENT E October 13, 2020 City Council Minutes 16-58 City of Newport Beach Regular Meeting October 13, 2020 Motion by Council Member Muldoon, seconded by Council Member Herdman, to a) find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15303 under Class 3 (New Construction) of the CEQA Guidelines, because it has no potential to have a significant effect on the environment; b) adopt Resolution No. 2020-89, A Resolution of the City Council of the City of Newport Beach, California, Approving General Plan Amendment No. GP2020-003 for a Residential Subdivision Located at 2400 Santiago Drive (PA2020-041); and c) adopt Resolution No. 2020-90, A Resolution of the City Council of the City of Newport Beach, California, Approving Tentative Parcel Map No. NP2020-007 for a Residential Subdivision Located at 2400 Santiago Drive (PA2020-041). With Mayor Pro Tem Avery voting "no," the motion carried 6-1. 18. Ordinance No. 2020-26: Short Term Lodging Amendments to Chapter 5.95 and Title 21 of the Newport Beach Municipal Code (PA2020-048) [100-20201 Mayor O'Neill recommended Council discuss provisions specific to Newport Island separately and direct staff to return with modifications because public comments have suggested the proposed amendments are insufficient. City Attorney Harp advised that the recommendation is appropriate. Mayor O'Neill acknowledged that the good operators wanted to obtain the City's support while balancing the needs of residents and visitors. Council Member Herdman reported that the Ad Hoc Committee on Short -Term Lodging (STL) has been working on this issue for 20 months, held ten community meetings and more than 20 ad hoc committee meetings, and heard from the community, property owners, and STL owners, stated that Council has adopted an ordinance that regulates the STL industry and that allows staff to collect data on problem units, believed the City has the tools and means to eliminate problem units, assured that good operators have nothing to worry about, and emphasized that Council is responsible for protecting the well-being of residents. Council Member Brenner noted comments from STL operators supporting a six -night minimum, the cap will not negatively impact current STL operators, and good operators appreciate the ordinance. Council Member Dixon stated that engagement with management companies and residents has been intensive, noted that the STL topic has been before Council for four or five years, believed the four -night minimum stay requirement for Newport Island is almost impossible to enforce, stated the answering service is not a legal enforcement mechanism, noted that residents are looking to the City to enforce the Code, affirmed that the ordinance contains the good operators' requirements for a minimum age of 25 years and a good neighbor policy, and stated that the City ha& not assessed the negative environmental impacts of STLs on the community. In response to Council Member Dixon's questions, Community Development Director Jurjis advised that the Coastal Commission believes STL units are low-cost visitor accommodations and wants to preserve the units in any Coastal Zone, stated the majority of complaints to the hotline concern noise, and noted that staff investigates all complaints, but code enforcement officers need evidence. Police Chief Lewis indicated police officers enforce after -hour parking violations and notify code enforcement of citations or advisements that are issued. Community Development Director Jurjis related that code enforcement resources appear to be enough and that staff will assess resources over time. In response to Mayor O'Neill's questions, Community Development Director Jurjis reported the ad hoc committee worked through and analyzed the cap, looked at the number of permits issued and the number in process and added a little more for a total of 1,550, stated that if Council approved a cap of 1,550, the ad hoc committee wants to amend the emergency ordinance to allow the issuance of permits up to the cap, reported approximately 30 citations not related to COVID-19 have been issued to STL owners in the past two years, noted that Government Code requires a six-week review Volume 64 - Page 543 16-59 City of Newport Beach Regular Meeting October 13, 2020 by the public before Council or a discretionary body takes a look at a Local Coastal Plan (LCP), and confirmed that staff published an LCP notice six weeks prior to any consideration and is not required to do another six week notice if the LCP is changed. Mayor O'Neill did not believe there is justification for the emergency ordinance and disagreed with staff regarding the six-week notice for an LCP. Council Member Brenner expressed concern that the number of STL units in the Coastal Zone will increase by 60 units, stated that the ad hoc committee has a pro-business approach and did not want to eliminate STLs, noted that the Police Department has to address crimes before STL complaints, but Council has to address citizen complaints. Council Member Herdman noted the ordinance has various infractions that can result in a citation, and two citations in a year can result in permit revocation. In response to Council Member Herdman's questions, Community Development Director Jurjis reported that the City cannot implement any ordinance revisions until the Coastal Commission approves them and if Council amends the emergency ordinance to remove the ban, staff will issue the permits in process. In response to Council Member Dixon's questions, Community Development Director Jurjis advised that a majority of the City's 4,000 hotel rooms are located in the Coastal Zone, stated that the number of units indicates the City's hospitality industry is very strong, confirmed that compared to cities of similar size, Newport Beach has the highest number of STL units. Council Member Brenner expressed concern about the transferability of permits because an STL permit could increase the value of the property and lower the value of surrounding properties. Council Member Muldoon believed complaints can easily be resolved if code enforcement officers work later hours or investigate a complaint without a police officer and impose hefty fines. Mayor O'Neill believed imposing a cap would result in inequities, noted that there are many ways to transfer property without changing ownership, provided examples, and stated that some changes in ownership are benign. Council Member Herdman noted an STL permit must be renewed annually and advised that the permit is not owned. Mayor O'Neill indicated an individual could not transfer ownership of his property without losing the STL permit, but an entity could. Council Member Herdman suggested transferability should be handled separate from the cap, the minimum night stay, and parking requirements. Mayor O'Neill believed the cap and transferability must be considered together. Council Member Brenner agreed that these issues should be discussed and considered further. In response to Council Member Dixon's question, Community Development Director Jurjis requested that the Mayor conduct a straw poll to determine whether staff returns with an amendment to the emergency ordinance to eliminate the ban on STL permits if Council wants to continue the transferability issue. Council Member Dixon noted noise and parking are the critical pillars of the problem, but service personnel facilitating the rapid turnover of units is also a problem, stated that eliminating the cap will place an enormous burden on public safety personnel, and believed the City has issued permits without considering the intensification of traffic and the impacts on neighborhoods. Council Member Muldoon reiterated that all STL rules will be irrelevant if they are not heavily enforced, which would alleviate problems. Council Member Brenner indicated that people are constantly telling Council Members that rules and ordinances are not being enforced and stated that enforcement is the key to any plan for STLs. Volume 64 - Page 544 16-60 City of Newport Beach Regular Meeting October 13, 2020 Council Member Herdman concurred with Council Member Muldoon's suggestions and stated that members of the ad hoc committee are advocating for residents in their districts who are being negatively impacted by STLs. Mayor Pro Tem Avery noted the same problems have occurred in the Harbor and on the Boardwalk, believed the Police Department does not have the resources to enforce every regulation and code enforcement does not have sufficient resources, and suggested that, with training, the City's park rangers could help with enforcement. Council Member Dixon pointed out that the issue is how to respond to the residents' pleas for help, hoped Council can approve a cap for a period of three years in order to stabilize the community, and preferred to delay the discussion about transferability. Council Member Muldoon appreciated the City's complaint -based system of enforcement and suggested Council consider alternatives to enforcement if staffing is not sufficient. Mayor O'Neill opened the public hearing. Carol McDermott, representing Craig Batley, Aaron Batley, Jeff Bosson, and Don Abrams believed the Planning Commission rejected phase 2 because they felt it infringed on coastal access and was unfair to some property owners, reported the hotline is not working effectively, phase 1 continues to create confusion, the workshop will not get the input Council wants, noise and parking issues come down to enforcement, STL guests do not overburden City services or impact traffic, confusion about some of the provisions requires a continuance of the item, limiting STL permits to 1,550 infringes on the industry, using the number of bedrooms is a better measurement than square footage for limiting occupancy, eliminating the cap could eliminate the need for an LCP amendment, the number of valid permits may be inflated, and suggested including two representatives of the STL industry on the ad hoc committee. Jim Mosher indicated he submitted a question regarding the six week noticing to the legal counsel for the Coastal Commission, stated that a draft of the proposed ordinance was not posted six weeks in advance, noted that the Coastal Act contains noticing requirements for hearings on LCP amendments, believed a lottery is the one equitable way to deal with a limited number of permits, and stated that, if Council includes two STL representatives on the ad hoc committee, it will have to notice public meetings in accordance with the Brown Act. Gary Cruz hoped Council would consider the concerns of Newport Island residents, expressed concern the sense of community is changing, and believed increasing enforcement with new hires or a contractor is a good idea. Mark Markos stated it appears there have been 30 to 40 code violations in the last 45 days, but no citations have been issued, opposed STLs on Newport Island, and noted support for a ban on STL permits. Carmen Rawson agreed with Council Member Muldoon's comments regarding enforcement, opposed the provision which holds owners responsible for violations, and requested that the Police Department explain the procedure for issuing a citation. Scott McFetters commented that enforcement does not work on Newport Island, 90 percent of residents are permanent, lot sizes, parking, and streets without sidewalks are not appropriate for STL use, and believed banning STLs or requiring them to be owner -occupied may be a solution. An unidentified speaker indicated her experience renting to guests via Airbnb and noted she has no problems with STL tenants. Volume 64 - Page 545 16-61 City of Newport Beach Regular Meeting October 13, 2020 Nancy Scarbrough agreed with most of the provisions in the ordinance, noted that on September 6, 2020, a majority of Council supported a minimum night stay and a permit cap, commented that without community input, the Mayor added transfer of permits via inheritance and property sale, which Council also supported, believed the provisions should not be considered because the public has not provided input and the ad hoc committee has not considered them, and stated that the provisions will turn into a property right that no future Council will be able to remove. Mayor O'Neill stated the accusation of a backroom deal is obscene and not accurate, and confirmed that transferability and a cap have to be addressed together. Council Member Muldoon added that he had not addressed the provisions prior to the Council meeting, the provisions are standard legal language, and stated that he has no financial interest if he supports the language. Scott Carpenter, iTrip Vacations, believed that a cap of 1,550 permits seems arbitrary and that a cap of 2,000 units might be more appropriate, suggested that, if a STL unit does not pay more than $1,000 in Transient Occupancy Tax (TOT) per year over a two-year period, the permit is revoked and Council should consider removing the ban on new permits, and commented that the parking violations shown in the pictures on Newport Island should be enforced. Ms. Fine, Airbnb, supported reasonable regulations for STLs that protect public safety and preserve neighborhood integrity, stated that STL is a way to expand access to the coast, and encouraged Council to eliminate the minimum night stay requirement. Michelle Baccaro believed that STLs have been on Newport Island for more than 100 years, found long-term rental tenants to be more trouble than short-term rental tenants, and a property with a STL permit has a higher value than a property without a permit. She suggested that Council also provide a hotline phone number for long-term rentals. Denys Oberman supported placing a cap on the number of STL permits, agreed with Council Member comments about enforcement, and requested Council provide clear directions to the Police Department regarding enforcement. Rob Wright hoped to purchase a home in Newport Beach with an STL unit and believed parking is a problem for long-term tenants rather than short-term tenants. Lucinda indicated Newport Island is currently louder and has more traffic than in the past. Joe Bo werbank appreciated the four -night minimum stay provision and the complaint hotline, believed the ordinance is not working, and believed STLs will not work on Newport Island. Randy Beck advised that he bought his property believing that the STL permit would be transferable, expressed concern that the City is changing the rules without providing a deadline, and stated that residents work out parking issues amongst themselves. Jim Maloney explained that STL permits were not renewed for R-1 properties, believed any cap needs to be adjusted to market needs, many of the provisions for Newport Island will not change the complaints, the City should hire inspectors with permit fees and TOT revenues, and disagreed with the characterization of STLs as an explosion. Bud Weasley discussed the deterioration of quality of life and the loss of privacy and community, and believed permits should not be transferred with the sale of a property. Ray Beaton believed STL is a business that affects neighborhoods and Council should treat it like a business. Volume 64 - Page 546 16-62 City of Newport Beach Regular Meeting October 13, 2020 Penelope Gilbert indicated her property is surrounded by STL units and believed that the units on Newport Island should be owner -occupied and owner -managed. Ken Rawson expressed concern that STL owners will be responsible for paying parking citations issued to their tenants. Rob Ryan did not believe the Peninsula has changed since the 1990s, but suggested that Newport Island may need its own rules. Hearing no further testimony, Mayor O'Neill closed the public hearing. Council Member Herdman noted that the ad hoc committee discussed particular units having to pay a certain amount of TOT on an annual basis and believed that a STL permit should not be revoked because the unit does not rent, as it is not the fault of the owner. In response to Council Member Brenner's questions, Community Development Director Jurjis reported STL units are allowed in R-2 and multi -family zones but not in single-family, mixed-use, and commercial zones, the potential for 10,000 STL units would not affect all of the City, square footage is a uniform method for limiting the occupancy of any type of unit, limiting occupancy based on the number of bedrooms could lead to property owners adding bedrooms to a unit that cannot accommodate a large number of bedrooms, a template for a nuisance policy is available on the City's website, and the City does not have the authority to evict tenants immediately. In response to Mayor O'Neill's question, City Attorney Harp explained that under the ordinance, a STL owner would not be responsible for paying a ticket issued to another party for a parking violation. Further, in accepting a STL permit, the owner is agreeing to be responsible for where tenants park within 100 feet of the unit, and a notice of violation will be issued prior to a citation. In response to Council Member Muldoon's questions, City Attorney Harp advised that the City does not get involved in the relationship between the landlord and the transient user, and staff may include in the nuisance abatement plan a requirement for operators to include an immediate eviction clause in its lease agreement. City Manager Leung reported the Police Department and a contractor handle parking enforcement. Finance Director Matusiewicz indicated the contract may require the contractor to patrol STL areas more frequently without charging additional fees, the Police Department may dispatch the contractor directly, and the contractor cannot issue citations for Vehicle Code violations, only Municipal Code violations. City Manager Leung added that staff is discussing a reallocation of contract resources to focus on these types of violations in STL areas and if additional resources are needed, she will advise Council. Council Member Dixon liked the suggestion of requiring owner -occupied and owner -managed for units on Newport Island, stated that the ad hoc committee supported the provision to cite the owner for tenant parking violations because police cannot determine where vehicles belong, suggested Council consider requiring one onsite parking space per unit and the towing of illegally parked vehicles, restrict permits to R-2 properties only, provide a flexible cap, maintain the ban on issuing permits for Newport Island, and enforce parking regulations. In response to her question, Community Development Director Jurjis indicated staff has received complaints about the hotline and the vendor is addressing them, and stated that limiting STL to R-2 properties is acceptable with abatement and a grandfather program for properties holding a permit. Mayor Pro Tem Avery believed defining ordinance provisions will be difficult, the City needs a better partnership with STL operators more than enforcement, supported including provisions that will be effective, believed towing vehicles may not be allowed, commented that operators need to be located in California, and noted that many local operators do a good job managing STL units. Volume 64 - Page 547 16-63 City of Newport Beach Regular Meeting October 13, 2020 Council Member Duffield appreciated the ad hoc committee's many hours of work, concurred with Council Member Muldoon's comments regarding enforcement, believed Newport Island needs its own rules, and supported a requirement for owner -occupied and owner -managed on Newport Island. Mayor O'Neill noted four operators, who represent more than a third of the rental units, do not support the ordinance as currently written, expressed concern about the Coastal Commission accepting the LCP amendment as written, clarified the challenges of drafting language for a cap and transferability clause, stated that Council needs the support of good operators, and believed modifying the emergency ordinance will require multiple meetings. Council Member Brenner wanted to move the ordinance forward with the transferability language in order to begin the process for Coastal Commission approval and Council can amend the ordinance as needed. Motion by Council Member Brenner, seconded by Council Member Dixon, to a) find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 21065 of CEQA and State CEQA Guidelines Sections 15060(c)(2), 15060(c)(3), and 15378. The proposed action is also exempt pursuant to State CEQA Guidelines Section 15061(b)(3) because it has no potential to have a significant effect on the environment; b) waive full reading, read by title only, introduce Ordinance No. 2020-26, An Ordinance of the City Council of the City of Newport Beach, California, Amending Portions of Chapter 5.95 of the Newport Beach Municipal Code Relating to Short Term Lodging, and pass to second reading on October 27, 2020; and c) adopt Resolution No. 2020-91, A Resolution of the City Council of the City of Newport Beach, California, Authorizing Submittal of Local Coastal Program Amendment No. LC2020-007 to the California Coastal Commission, an Amendment to Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code Related to Short -Term Lodging (PA2020-048). Mayor Pro Tem Avery compared STL permits to mooring permits, and believed a lottery is a good idea and preferable to the transferability language. Council Member Dixon supported the language for transferring ownership through a family trust and to an immediate family member, and suggested a time limit could be imposed in addition to a three -night minimum stay, the cap of 1,550 units, a minimum age of 25 years for tenants, and requiring owners to be responsible for parking violations. Council Member Herdman reported extensive surveys were conducted of cities and did not find any transferability policies, and stated Council needs to determine if the Coastal Commission will approve the cap and a three -night minimum stay. In response to Council Member Dixon's question, Community Development Director Jurjis advised that staff can discuss the issues with Coastal Commission staff. Council Member Muldoon indicated he supports lifting the ban on STL permits, but opposes the ordinance. City Attorney Harp proposed amending Condition of Approval 23 to state, "The owner shall ensure that any transient user or transient user's guest complies with state or local law." Council Members Brenner and Dixon accepted the amendment. With Mayor O'Neill, Mayor Pro Tem Avery and Council Member Muldoon voting "no," the motion, as amended, carried 4-3. City Attorney Harp requested Council consider whether provisions for Newport Island will include a grandfather clause. Volume 64 - Page 548 16-64 City of Newport Beach Regular Meeting October 13, 2020 Council Member Dixon proposed maintaining the freeze on permits for Newport Island until the City shifts to owner -occupied and owner -managed. City Attorney Harp advised that the ban on permits is tied to the emergency; if the emergency demands a freeze on permits, then the freeze is appropriate, as the ban is not a moratorium. Mayor O'Neill clarified that Council Member Dixon is not proposing an emergency ordinance but an ordinance. City Attorney Harp reported Council could propose a moratorium or modify the ordinance. Mayor Pro Tem Avery inquired about a transition point for Newport Island. Council Member Dixon suggested enforcement of parking and noise regulations begin immediately and suggested that staff can return with a proposed ordinance at the next Council meeting. In response to Council Member Brenner's question, City Attorney Harp suggested Council allow existing permitholders ten years to amortize out. Council Member Dixon noted existing permitholders may continue to operate if they transition to owner -occupied and owner -managed. Council Member Herdman questioned whether requiring owner occupancy and management would accomplish Council's goals for Newport Island. Council Member Dixon assumed conditions would improve with owner occupancy and management of units. Mayor Pro Tem Avery stated some property owners would have to move into the home in order to comply. City Attorney Harp added that some property owners may choose to sell the home rather than move into it, but a sale could require some time. City Attorney Harp suggested staff return with a draft ordinance with options. Council Member Brenner indicated Coastal Commission approval could take a year and, if the Council allows a year, property owners would have two years. Council Member Herdman advised that some STL units are rented for the entirety of 2021, so 24 months is probably the best way to go. City Attorney Harp advised that a transition period that interferes with owners' contractual relationships would create issues. Council Member Duffield related that, if there was a way to fund additional enforcement, he could support a 24 -month transition, as residents are suffering and their property values are plummeting. With Council Member Muldoon voting "no," there was a 6-1 straw vote to issue no new permits on Newport Island. With Council Member Muldoon and Mayor O'Neill voting "no," there was 5-2 straw vote to require short-term lodging on Newport Island to transition to owner -occupied and owner -managed within 12 months after Coastal Commission approval. Mayor O'Neill recessed the meeting at 9.05 p.m. and reconvened at 9.16 p.m. with all members of the City Council in attendance. XVIII. CURRENT BUSINESS 19. Resolution Nos. 2020-92 and 2020-93: Authorizing an Appeal of the Regional Housing Needs Assessment and Amending the Purpose of the Housing Element Update Advisory Committee [100-20201 Community Development Director Jurjis presented a map to demonstrate that only 45% of the City is not impacted by constraints and discussed the methodology, COVID-19 impacts, and the timeline. Volume 64 - Page 549 16-65 ATTACHMENT F Planning Commission Resolution No. PC2020-044 16-66 RESOLUTION NO. PC2020-044 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA, RECOMMENDING THE CITY COUNCIL DENY LOCAL COASTAL PROGRAM AMENDMENT NO. LC2020-008, AN AMENDMENT TO TITLE 21 (LOCAL COASTAL PROGRAM IMPLEMENTATION PLAN) OF THE NEWPORT BEACH MUNICIPAL CODE RELATED TO SHORT-TERM LODGING ON NEWPORT ISLAND (PA2020-326) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. On October 13, 2020, after deliberation of Local Coastal Program Amendment No. LC 2020-007, the City Council initiated an amendment to Title 21 (Local Coastal Program Implementation Plan) ("LCP Amendment") related to short-term lodging on Newport Island. 2. Pursuant to Section 13515 (Public Participation and Agency Coordination Procedures) of the California Code of Regulations, Title 14, Division 5.5, Chapter 8, a draft of the LCP Amendment was made available and a Notice of Availability was distributed on November 20, 2020, a minimum of six (6) weeks prior to the anticipated final action date. 3. A telephonic public hearing was held by the Planning Commission on December 3, 2020, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California, due to the Declaration of a State Emergency and Proclamation of Local Emergency related to COVID-19. A notice of time, place, and purpose of the public hearing was given in accordance with Government Code Section 54950 et seq. ("Ralph M. Brown Act") and Chapter 21.62 (Public Hearings) of the Newport Beach Municipal Code ("NBMC"). Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. The LCP Amendment is not a project subject to the California Environmental Quality Act ("CEQA") in accordance with Section 21065 of the California Public Resources Code and Sections 15060 (c)(2), 15060 (c)(3), and 15378 of the California Code of Regulations Title 14, Division 6, Chapter 3 ("CEQA Guidelines"). The proposed action is also exempt pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA applies only to projects, which have the potential for causing a significant effect on the environment. 16-67 Planning Commission Resolution No. PC2020-044 Page 2 of 2 SECTION 3. FINDINGS. 1. The City Council adopted Ordinance No. 2020-15 on July 14, 2020, amending Chapter 5.95 (Short Term Lodging Permit) of the NBMC. This ordinance was adopted in response to complaints about noise, too many guests in one unit, shortage of available street parking, and overflowing trash occurring at short-term lodging. The Planning Commission finds considering changes to Title 21 is premature and that enforcement of the amendments to Chapter 5.95 may resolve impacts that short-term lodging units have on neighboring residents located on Newport Island. 2. The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Planning Commission finds the LCP Amendment is not a project subject to CEQA pursuant to Section 21065 of CEQA and CEQA Guidelines Sections 15060 (c)(2), 15060 (c)(3), and 15378 of the California Code of Regulations Title 14, Division 6, Chapter 3. The LCP Amendment is also exempt pursuant to CEQA Guidelines Section 15061(b)(3), because it has no potential to have a significant effect on the environment. 2. The Planning Commission of the City of Newport Beach hereby recommends the City Council deny Local Coastal Program Amendment No. LC2020-008. PASSED, APPROVED, AND ADOPTED THIS 3RD DAY OF DECEMBER, 2020. AYES: Ellmore, Klaustermeier, Kleiman, Koetting, Lowrey and Rosene NOES: Weigand ABSTAIN: None ABSENT: ZBY: Erik Weigand, Ch it BY: Lauren Kleiman, ecretary ATTACHMENT G December 3, 20207 Planning Commission Minutes 16-69 1"T U a VII NEWPORT BEACH PLANNING COMMISSION MINUTES CITY COUNCIL CHAMBERS — 100 CIVIC CENTER DRIVE THURSDAY, DECEMBER 3, 2020 REGULAR MEETING — 6:30 P.M. CALL TO ORDER — The meeting was called to order at 6:35 p.m. PLEDGE OF ALLEGIANCE — Vice Chair Lowrey ROLL CALL PRESENT: Chair Erik Weigand, Vice Chair Lee Lowrey, Secretary Lauren Kleiman, Commissioner Curtis Ellmore, Commissioner Sarah Klaustermeier, Commissioner Peter Koetting, Commissioner Mark Rosene ABSENT: None Staff Present: Community Development Director Seimone Jurjis, Deputy Community Development Director Jim Campbell, Assistant City Attorney Yolanda Summerhill, City Traffic Engineer Tony Brine, Principal Planner Jaime Murillo, Code Enforcement Supervisor Brian Contino, Administrative Support Specialist Clarivel Rodriguez PUBLIC COMMENTS None REQUEST FOR CONTINUANCES None CONSENT ITEMS ITEM NO. 1 MINUTES OF NOVEMBER 19, 2020 Recommended Action: Approve and file Chair Weigand noted Mr. Mosher's suggested edits. Motion made by Commissioner Ellmore and seconded by Secretary Kleiman to approve the minutes of the November 19, 2020, meeting with Mr. Mosher's revisions. AYES: Weigand, Lowrey, Kleiman, Ellmore, Klaustermeier, Koetting, Rosene NOES: ABSTAIN: ABSENT: DISCUSSION ITEMS ITEM NO.2 CIRCULATION ELEMENT UPDATE STATUS REPORT Summary: A presentation focusing on the existing Circulation Element, definitions and terminology, themes, coordination with other agencies and the update process. Deputy Community Development Director Jim Campbell reported approximately 30 people participated in the November 23, 2020, virtual Circulation Element workshop. The workshop included a dialogue with the public, and it seemed to go well. Public speakers discussed Vehicle Miles Traveled (VMT), rideshare services, emerging technologies, and rerouting mapping applications away from neighborhoods among a variety of issues. The main takeaway was a desire to balance mobility, traffic, and housing. Additional virtual workshops are scheduled for December 15 and 16, 2020, to discuss themes of the existing Circulation Element. More workshops are being 1 of 7 16-70 Planning Commission Minutes December 3, 2020 planned for January 2021. The planned visioning workshop has been moved from January 13 to January 27, 2021. The Planning Commission's next study session regarding the Circulation Element is now scheduled for February 4, 2021. A video of the initial workshop is available to the public at www.newporttopether.com. Chair Weigand advised that he viewed the video of the workshop and found it informative. He encouraged Commissioners to view the video. In response to Chair Weigand's question, Deputy Community Development Director Campbell indicated the February 4, 2021, study session will likely include details of public comments from the three workshops and seek feedback from the Planning Commission to guide staff and consultants. Chair Weigand noted public comments pertained to circulation of vehicles, people, and bicyclists; Uber and Lyft; widening streets; Complete Streets; and the interaction of other agencies and jurisdictions with the Circulation Element. Commissioner Koetting shared specific comments from the public regarding coordination of the Housing Element and Circulation Element Updates, MacArthur Boulevard, Complete Streets, bicycles traveling on sidewalks, locating housing near essential stores and services, the City's Regional Housing Needs Assessment (RHNA) numbers, West Ocean Front, Mariner's Mile, regional transportation connections, alternative transportation, parking, transportation funding, the Waze app, golf carts, coordinating traffic flow with Irvine and Costa Mesa, and a change in zoning that a resident does not want, and staffs responses. In answer to Commissioner Koetting's query, Deputy Community Development Director Campbell clarified that the Housing Element Update has to be complete and submitted to the California Department of Housing and Community Development (HCD) in October 2021. Staff intends to complete drafts of the Housing Element Update and the Circulation Element Update later in the spring and complete an Environmental Impact Report (EIR) over the summer so that the Housing Element Update is ready for adoption on schedule. Jim Mosher remarked that there is a list of Newport Beach sidewalks on which bicycles are allowed to travel. There are areas within the City where it is inappropriate to ride a bicycle on the sidewalk. David Tanner asked if the Council would adopt the draft Housing Element Update prior to submitting it to HCD because HCD wants a Housing Element that has been approved by the Council and voters. Deputy Community Development Director Campbell indicated staff will submit a draft of the Housing Element Update to HCD in the spring or early summer. HCD will provide comments, which staff will incorporate into the final draft document. The final draft Housing Element Update will be presented to the Housing Element Update Advisory Committee and the Planning Commission for recommendations and the Council for approval. Following approval, staff will submit the Housing Element Update to HCD for the official certification review process. The Land Use Element will be updated later so that it is consistent with the approved Housing Element and will be subject to a vote of the electorate given the potential magnitude of the change. VIII. PUBLIC HEARING ITEM ITEM NO. 3 SHORT-TERM LODGING ON NEWPORT ISLAND LCP AMENDMENT (PA2020-326) Site Location: Newport Island Summary: Amendment to the Local Coastal Program Implementation Plan to update coastal zoning regulations prohibiting the issuance of new short-term lodging permits on any property located on Newport Island. Any existing short-term lodging unit located on Newport Island will be permitted to remain provided it is located on an owner -occupied parcel and managed by the owner of the owner -occupied unit within one year of the effective date of the ordinance adopting the amendment. Recommended Action: 1. Conduct a public hearing; 2 of 7 16-71 Planning Commission Minutes December 3, 2020 2. Find this project exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 21065 of CEQA and State CEQA Guidelines Sections 15060(c)(2), 15060(c)(3), and 15378. The proposed action is also exempt pursuant to CEQA Guidelines Section 15061(b)(3) because it has no potential to have a significant effect on the environment; and 3. Adopt Resolution No. PC2020-044, recommending the City Council authorize submittal of Local Coastal Program Amendment No. LC2020-008 to the California Coastal Commission to amend Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code amending coastal zoning regulations for the operation of short-term lodging on Newport Island (PA2020-326). Community Development Director Seimone Jurjis reported the Council recently adopted a short-term lodging (STL) ordinance that imposes a three -night minimum stay and a cap on the number of STL permits issued. In response to residents' complaints, the Council directed staff to initiate Code changes to address STL on Newport Island. The Planning Commission's action is a recommendation to the Council to approve or deny the proposed changes. Principal Planner Jaime Murillo advised that the proposed amendment would prohibit the issuance of any new permits for STL units on Newport Island and phase out existing permits over two years. An existing permitted STL unit located on an owner -occupied parcel and managed by the owner of the owner -occupied parcel would not be subject to the phase-out provision. Although Newport Island is zoned for two-family residential uses, a majority of the lots have been developed for single-family use. Over the past three years, the number of STL permits issued for Newport Island has increased approximately 500 percent. STL typically increases noise, refuse, parking demand, and traffic. These impacts are intensified by the small size, narrow streets, and single-family residential development of Newport Island. Outside the summer months, the public may park on Newport Island, which has nine locations for public access to the bay. In reply to Commissioner Koetting's inquiries, Community Development Director Jurjis explained that residents are encouraged to call the Police Department with complaints about parking. The police department will send a parking enforcement officer to investigate complaints. The Fire Chief feels the Fire Department has proper access to properties on Newport Island. In answer to Commissioner Ellmore's queries, Community Development Director Jurjis indicated in mid-August the Council adopted an ordinance that allows staff to cite an STL unit for violation of the Municipal Code if staff can tie a parking citation that occurs within 100 feet of the property line to the unit. The current STL Code requires operators to collect the license plate numbers of their tenants. Code Enforcement Supervisor Brian Contino reported a couple of citations have been issued to STL units for parking citations issued to tenants. The ordinance took effect after the end of the summer season. After two citations, a STL unit is subject to an administrative hearing process to suspend the STL permit for six months. After three citations, the STL permit is revoked. To his knowledge, no STL permits have been suspended since the ordinance took effect. In response to Commissioner Klaustermeier's questions, Code Enforcement Supervisor Contino related that citations may be issued for noise, refuse, parking, and disturbing the peace. The bulk of complaints pertains to a few properties. In reply to Secretary Kleiman's inquiry, Community Development Director Jurjis clarified that a code enforcement officer must witness the violation in order to issue a citation. Photos may be used to document a parking violation. Code Enforcement Supervisor Contino advised that four citations have been issued to STL units on Newport Island, but he was not aware of the total number of citations issued on Newport Island. Community Development Director Jurjis added that staff has not developed a nexus between STL and citations. The Council initiated the proposed amendment. In answer to Commissioner Rosene's queries, Community Development Director Jurjis reported a Council ad hoc committee studied nonconforming parking of STL units, found about 400 units in Newport Beach have nonconforming parking, and did not want to take permits away from STL units. The ad hoc committee recommended the Council require homeowners to declare the number of parking spaces and the location of the spaces and did not recommend any minimum requirements for parking. Occupancy of STL units is based on floor area and not based on parking availability. Prior to August 2020, there were no STL operating regulations to address the operation of STL, beyond trash and noise; therefore, staff has no code enforcement data to support violations. 3 of 7 16-72 Planning Commission Minutes December 3, 2020 In response to Commissioner Klaustermeier's question, Principal Planner Murillo related that the City began issuing STL permits in 1992. Community Development Director Jurjis noted STL has been a part of Newport Beach's culture for a very long time, but the actual program began in 1992. In reply to Chair Weigand's inquiries, Principal Planner Murillo indicated a preferential parking permit is required to park on the streets of Newport Island from May to September, and each property receives three permits. Anyone can park on the streets of Newport Island from October to April. All Commissioners disclosed no ex parte communications. Chair Weigand opened the public hearing. Lori Bowman opposed the requirement for an owner to occupy the property in order to retain an STL permit. Her family relies on rental income to maintain the property, does not rent to parties who cause disturbances or damage property, and complies with all STL requirements. The loss of rental income would impose a financial hardship on her family. Singling out Newport Island is unfair and unequitable. Jim Mosher commented that the City's Coastal Land Use Plan states that single-family homes are offered to visitors on a short-term basis. He questioned whether the Finley Tract, which is located across the Rialto Canal from Newport Island, has experienced an increase in STL units and impacts similar to Newport Island and, if so, whether the amendment should apply to the Finley Tract as well. Finding 6 on page 15 of the staff report implies that STL units impact visitors attempting to park on Newport Island; however, visitors are not allowed to park on Newport Island during the summer months. Gary Cruz advised that the online packet for the meeting does not contain all correspondence from the public. Not all STL tenants are bad, but some are really bad. Some homeowners purchased properties on Newport Island to escape parrying. Rental income makes STL a lucrative business and could lead to the end of the residential neighborhood. Construction vehicles are likely the main cause of parking congestion. Chair Weigand clarified that public correspondence submitted prior to the Friday before the meeting is included in the packet. Correspondence submitted between Friday and the meeting is provided to Commissioners via email. Charles Gayton stated he received a citation related to his STL tenants, and it cost him $1,000. He has had more problems with long-term tenants than short-term tenants. All STL units should be treated equally. STL tenants have not ruined Newport Island. Mike Ivey supported STL. Newport Island residents park illegally more often than STL tenants. Residents treat STL tenants differently than other residents. STL units across the City should be treated the same. These regulations penalize the good STL operators. Mark Markos expressed concern regarding vehicles parking illegally and blocking access for emergency vehicles and residents. Life on Newport Island has changed over the past two years as the number of STL units has increased. One STL unit may add four or five vehicles to Newport Island at one time, and there are only 50 parking spaces on Newport Island. Scott McFetters agreed that STL units have impacted the quality of life of Newport Island residents. STL units are rented for corporate and private parties and for one night at a time. The people who oppose the amendment do not live on Newport Island and do not suffer the impacts of STL units. Gina Cruz remarked that the dramatic increase in STL permits, the City's lack of foresight, and the encouragement for residents to complain have caused tension among neighbors. STL operators want the right to earn income from their property, and she wants the right to a good night's sleep so that she can earn her salary. Mason Ye wanted to preserve Newport Island and the community, but a blanket ban on STL units is not the right answer. The City should be able to find a compromise. 4 of 7 16-73 Planning Commission Minutes December 3, 2020 Bud Reveley commented on Newport Island residents' loss of privacy, peaceful enjoyment, and the feeling of community caused by the increase in STL units on Newport Island. Short-term rentals will eliminate the availability of long-term rental housing. John DiGiovanni opposed the proposed amendment. He has evicted unruly STL tenants from his unit in the past and requested neighbors contact him personally with issues. Police should be called to issue citations for Code violations. Permits with multiple citations should be suspended but not revoked. Permit parking can be extended to year-round. He questioned whether staff has documentation of citations for STL tenants and whether any STL permits for Newport Island have been suspended or revoked. STL tenants support local businesses and merchants and provide the City with tax revenue. Peter Burkhard believed STL has not been a part of the fabric of life on Newport Island. STL tenants will use the most convenient parking space rather than a parking space assigned to the unit. He supported the amendment. Residents should not have to police the neighborhood. Chair Weigand closed the public hearing. In answer to Chair Weigand's questions, Community Development Director Jurjis reported the Council adopted an emergency ordinance prohibiting the issuance of new permits. If the Council and the Coastal Commission approve the proposed amendment, STL owners will have one year to transition to owner occupancy. The Council debated the issues of owner occupancy and renewal of the existing STL permits, and a majority of the Council supported owner occupancy as a way to manage STL units. Unlike Balboa Island, Newport Island does not have alleyways to access garages. In reply to Secretary Kleiman's inquiry, Community Development Director Jurjis explained that STL permits have to be renewed annually. The renewal application will include a declaration by the property owner that he is living onsite. A code enforcement officer will not proactively check units for owner occupancy. In response to a complaint, code enforcement will visit the property to verify owner occupancy. Administrative hearing officers have set a high bar for evidence supporting the City's claims against STL units. Secretary Kleiman noted the Council deliberated the issues, and public comments seem to be evenly divided on the issues. The Council's meeting minutes reflect majority support for prohibiting the issuance of new permits for the City overall and slightly less support for an owner -occupied and managed requirement. She could support a limitation on one's property rights if she believed the requirement would alleviate the issues described in public comments. However, she did not believe the requirement would resolve the problems. Commissioner Ellmore stated the Planning Commission focuses on planning. The issues at hand pertain to property rights. The existing ordinance is intended to identify bad operators and should be given time to work. He did not necessarily agree with imposing a blanket limitation on property rights on a portion of the City. Newport Island will always have parking issues, especially with construction. In response to Chair Weigand's query, Assistant City Attorney Yolanda Summerhill advised that adopting an ordinance that limits STL permits does not deprive a property owner of the economic value of his property. Vice Chair Lowrey related that the requirement could be viewed as downzoning Newport Island property from two- family to single-family residential with respect to an STL permit. He concurred with Commissioner Ellmore's comments. Applying a different rule to one portion of the City seems like spot zoning. The ordinance has not been given a chance to resolve residents' complaints. In answer to Chair Weigand's question, Community Development Director Jurjis reported the Council implemented the STL permit program and can remove it. Long-term rentals are a property right, but this program applies to short- term rentals, which are rentals of less than 30 days. Staff needs time to get through the summer season and determine what does and does not work, staffing levels, and fees. The Council wants to respond to Newport Island residents and understands the ordinance needs time to work. The Council preferred to address this issue while addressing STL. 5 of 7 16-74 Planning Commission Minutes December 3, 2020 In reply to Commissioner Rosene's inquiry, Community Development Director Jurjis indicated the Council has determined staff needs additional resources, and recruitment for an additional code enforcement officer is underway. Also, staff is attempting to retain contract staff. The Council authorized staff to implement a 24-hour hotline for STL complaints. Since its implementation in October, the hotline has received approximately 30 calls. Chair Weigand indicated the reactive approach to code enforcement creates animosity among neighbors. He took issue with a requirement for the owner to live onsite. He inquired whether Commissioners could support capping permits at the current number but not requiring owner occupancy. Commissioner Rosene could support a recommendation that does not include a requirement for owner occupancy. Commissioner Klaustermeier believed the 18 permitted operators include a couple of bad operators, and the previously approved ordinance needs time to have some effect. Chair Weigand suggested the question is whether 18 permits are too many because the permitted units are causing problems. Commissioner Klaustermeier advised that the Council approved an overall cap of 1,550 STL permits. Further restricting one specific section of the City is not fair. Commissioner Koetting expressed surprise that more STL permits have not been rescinded. He concurred with Commissioner Ellmore's and Vice Chair Lowrey's comments. Three citations before revocation may be too many. Vice Chair Lowrey added that a new makeup of the City Council comes into play with the issue. The Council may take the Planning Commission's concerns and comments and review the issues. Motion made by Commissioner Ellmore and seconded by Vice Chair Lowrey to recommend the City Council not authorize submittal of Local Coastal Program Amendment No. LC2020-008 to the California Coastal Commission to amend Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code amending coastal zoning regulations for the operation of short-term lodging on Newport Island (PA2020-326). Substitute Motion made by Chair Weigand to approve the staff recommendation with deletion of the requirement for owner occupancy of short-term lodging units. Substitute Motion failed for lack of a second. Vote on the Motion AYES: Lowrey, Kleiman, Ellmore, Klaustermeier, Koetting, Rosene NOES: Weigand RECUSED: ABSENT: IX. STAFF AND COMMISSIONER ITEMS ITEM NO. 4 MOTION FOR RECONSIDERATION None ITEM NO. 5 REPORT BY THE COMMUNITY DEVELOPMENT DIRECTOR OR REQUEST FOR MATTERS WHICH A PLANNING COMMISSION MEMBER WOULD LIKE PLACED ON A FUTURE AGENDA. Deputy Community Development Director Campbell reported the City Council has approved a first reading of the ordinance addressing third -floor building massing. The Planning Commission's December 17, 2020, and January 7, 2021, meetings have been canceled. The Planning Commission's next meeting is scheduled for January 21, 2021, and the agenda currently has four items. 6 of 7 16-75 Planning Commission Minutes December 3, 2020 In reply to Commissioner Ellmore's inquiry, Deputy Community Development Director Campbell indicated several applications for large developments are pending but likely will not be presented to the Planning Commission in the near term. Deputy Community Development Director Campbell reminded the Commission of the December 15 and 16 Circulation Element virtual workshops. Information is available at www.newporttogether.com. The discussions may be lively based on the topics planned for the workshops. Chair Weigand encouraged Commissioners to attend the workshops or view the recordings afterwards. He noted the next Planning Commission meeting may be virtual due to Executive Orders released earlier in the day. In response to Commissioner Koetting's questions, Community Development Director Jurjis advised that the applicant for the 76 Station project received preliminary construction bids that were very high. Consequently, the property owner has decided to remodel the existing structure to include a convenience store. Deputy Community Development Director Campbell indicated the application for the Shell car wash project has been delayed but will be presented to the Council on January 26, 2021. The revitalization plan for Mariner's Mile has been shelved. Vice Chair Lowrey announced the annual holiday event for the Planning Commission has been postponed to the spring or summer, depending on the status of COVID-19 restrictions. ITEM NO. 6 REQUESTS FOR EXCUSED ABSENCES None X. ADJOURNMENT — 8:30 P.M. The agenda for the December 3, 2020, Planning Commission meeting was posted on Wednesday, November 25, 2020, at 5:10 p.m. in the Chambers binder, on the digital display board located inside the vestibule of the Council Chambers at 100 Civic Center Drive, and on the City's website on Wednesday, Noven%ber 25, 2020, at 5: m. ErikJ,Ve'i6abd, Chair n Lauren Kleiman, Secretary 7 of 7 16-76 ATTACHMENT H Title 21 Revisions Redline Strikeout 16-77 Proposed Local Coastal Program Amendment Short -Term Lodging on Newport Island (LC2020-008) [This proposed amendment would modify revision proposed under LC2020-007 currently under review by the California Coastal Commission] 21.48.115 Short -Term Lodging. A. Purpose. This section provides standards for the operation of short-term lodging units to prevent over -burdening City services and adverse impacts on residential neighborhoods and on coastal access and resources. M=WN.M. . WON i, MWIM'M • ■ WIN I I I I 111 M1 "I'l 1 @11 ------ - im MIN - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - FINE- . • • • 11 ■ B. Permits. 1. No owner of a short-term lodging unit shall advertise for rent, or rent a lodging unit located within a residential district for a short term. without a valid short-term lodging permit for that unit, issued pursuant to Chapter 5.95. 2. An owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of Chaster 5.95. 3. As set forth in Section 5.95.042. of Chaoter 5.95. the maximum number of short term lodging permits shall be limited to one thousand five hundred and fifty (1,550) permits at any time. If there are more than one thousand five hundred and fifty (1,550) valid permits that have been issued as of [EFFECTIVE DATE OF ORDINANCE NO. 2020-261, no new permit shall be issued to anyone on the 16-78 waiting list, as described in Section 5.95.042 (D), until the total number of permits does not exceed the one thousand five hundred and fifty (1,550) limit. 4. In addition to the restriction set forth in Section 5.95.042 and subsection (13)(3), the maximum number of short-term lodging permits issued for units located on Newport Island (Map A-16), shall be limited to twenty (20) short-term lodging permits at any one time. If there are more than twenty (20) valid short-term lodging permits that have been issued as of the (EFFECTIVE DATE OF ORDINANCEI, an owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the provisions of Chapter 5.95; however, no new permit shall be issued unless: (a) permits are available for issuance pursuant to Section 5.95.042 and subsection (B)(3); and (b) the total number of permits for units located on Newport Island does not exceed twenty (20). If the City has issued the maximum number of permits available for units on Newport Island, the City shall maintain a waiting list and follow the same procedures as set forth in Section 5.95.042 (D). For purposes of this subsection, the maximum number permits available will be calculated in the same manner as set forth in Chapter 5.95. 5. Permit holders on Newport Island shall only be allowed to rent a dwelling unit for a short-term if the dwelling unit is located on a lot with an owner -occupied dwelling unit that is managed by the owner of the owner -occupied dwelling unit. Any existing permit holder of a dwelling unit that is not located on an owner -occupied lot will be permitted to retain their permit until [ONE YEAR AFTER EFFECTIVE DATE OF ORDINANCEI. 6. No short-term lodging unit shall be permitted on any lot in the R-1 (Single -Unit Residential) Coastal Zoning District or any lot designated for single -unit dwelling land use as part of a planned community development plan, unless the short-term lodging unit was legally established on or before June 1, 2004. C. Operational Standards. The owner, or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit, shall comply with all federal, state, and local laws, rules, regulations and conditions of approval including, but not limited to, all short term lodging permit conditions set forth in Chapter 5.95. In addition, the owner, or any other person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit, shall: By written agreement, limit overnight occupancy of the short-term lodging unit to the maximum permitted by the Building Code and Fire Code. 2. Use best efforts to ensure that the transient user, occupants and/or guests of the short term lodging unit do not create unreasonable noise or disturbances, engage 16-79 in disorderly conduct, or violate provisions of this Code or any state or federal law pertaining to noise, disorderly conduct, the consumption of alcohol, or the use of illegal drugs. 3. Upon notification that any transient user, occupant and/or guest of his or her short term lodging unit has created unreasonable noise or disturbances, engaged in disorderly conduct or committed violations of this Code or any state or federal 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 any transient user, occupant or guest. 4. Use best efforts to ensure compliance with applicable health and sanitation regulations relating to waste disposal. 5. Post a copy of any applicable permits and conditions in a conspicuous place within the unit. 6. Not rent, let, advertise for rent, or enter into an agreement for the rental of any lodging unit, for less than three (3) consecutive nights. 7. 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 section. 21.70.020 (Definitions of Specialized Terms and Phrases "Dwelling unit, owner -occupied" means a dwelling unit that is occupied by a natural person who has at least a twenty-five percent ownership interest in the lot where one or more dwelling units are located or a twenty five percent ownership interest in the entity that owns the lot where one or more of the dwelling units are located and who resides in a dwelling unit on the same lot, which is the person's legal domicile and permanent residence. "Owner-occuoied dwellina unit". 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O os��o�7 7�i y c' 7 uFj 'T�`E!i`� �. ���,j y♦♦ 33° UNRS 0 2ao F Feet °o�ao-_30 Newport Island =°a.: NBGIS N E W P O R T B E A C H City of Newport Beach PA 2 0 2 0- 3 2 6 GIS Division November 10, 2020 Jewgortlsland STLPt.mzd 0-03 ATTACHMENT J Coastal Access and Recreation Map 3-1 II PB 411jillkilill A7 4 A I — I ' ----- !� ❑ �U �U UU L -U ❑ Uj uL--jLjL-❑ —1 L --1 r 0 ❑ ❑� F--] 1-l'=�❑❑❑�❑ I I I I I I City of Newport Beach, California (West Newport Area) Jc� Local Coastal Program n Coastal Land Use Plan MAP3-1 LCP05AccessRecWNpt.mxd 3-38 Coastal Access and Recreation: Map 3-1 (Map 1 of 3) LEGEND PB Public Beach Location A Public Beach Access Location 0 Potential Access Point ' Coastal Zone Boundary 0\,* Lateral Access N.+ Potential Lateral Access .4 Vertical Access Blufftop Access Potential Blufftop Access +� City Boundary Proposed Park Public Beach or Park City of Costa Mesa Pacific Ocean City of Irvine J City of Laguna Beach NORTH 1 Miles July / 2009