Loading...
HomeMy WebLinkAbout26 - A Code Amendment Related to Short -Term Lodging Citywide and on Newport Island (PA2020-048 and PA2020-326)Q �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report November 30, 2021 Agenda Item No. 26 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Jaime Murillo, Principal Planner, jmurillo@newportbeachca.gov PHONE: 949-644-3209 TITLE: Ordinance No. 2021-28: A Code Amendment Related to Short -Term Lodging Citywide and on Newport Island (PA2020-048 and PA2020- 326) For the City Council's consideration is an ordinance amending Chapter 5.95 (Short Term Lodging Permit) and Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code (NBMC) updating the regulations for short-term lodging applicable to properties citywide to establish a maximum cap of 1,550 permits and a minimum night stay of two consecutive nights. The ordinance would also establish additional short-term lodging regulations applicable to Newport Island that include establishing a maximum of 20 permits, requiring properties with short-term lodging to be owner occupied and owner managed, establishing maximum daytime and overnight occupancy limits, restricting rentals to a maximum of one per week, and establishing minimum parking requirements. RECOMMENDATION: a) Conduct public hearing; b) Find the action statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15265(a)(1) of the California Code of Regulations, Title 14, and Chapter 3 of the Coastal Act. Section 15265(a)(1), which exempts local governments from the requirements of preparing an environmental impact report or otherwise complying with CEQA in connection with the adoption of LCP Amendments; and c) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2021-28, An Ordinance of the City Council of the City of Newport Beach, California, Amending Chapter 5.95 (Short Term Lodging Permit) and Title 21(Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code Relating to Short Term Lodging, and Adopting Local Coastal Program Amendment No. LC2020- 007 Related to Short Term Lodging and Local Coastal Program Amendment No. 26-1 Ordinance No. 2021-28: A Code Amendment Related to Short -Term Lodging Citywide and on Newport Island (PA2020-048 and PA2020-326) November 30, 2021 Page 2 LC2020-008 Related to Short Term Lodging on Newport Island (PA2020-048 and PA2020-326), and pass to second reading on December 14, 2021. DISCUSSION: Short-term lodging is a dwelling unit that is rented or leased for a period of less than 30 consecutive calendar days. The City of Newport Beach (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. 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 (Title 20), which allowed short-term lodging in most residential zoning districts except the R-1 zones. Although the primary regulatory framework for short-term lodging is contained in NBMC Chapter 5.95, it is classified as a visitor accommodation land use that provides lower cost access to the coast. Therefore, in 2017, when the California Coastal Commission certified the Local Coastal Plan Implementation Plan (Title 21), NBMC Chapter 21.48 was incorporated to include general standards affecting the regulations of short-term lodging in the coastal zone, including permitted locations. In 2019, the City Council held a study session on short-term lodging and later formed an Ad Hoc Committee to review and recommend changes to the ordinance. Over the past two years, the City Council has adopted a number of ordinances related to short-term lodging as summarized below: 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 rentals were prohibited. In June 2020, the City Council adopted Emergency Ordinance No. 2020-006 which required a four -night minimum stay on Newport Island. These requirements were in effect until the local emergency period was terminated on June 22, 2021. In July 2020, the City Council adopted Ordinance No. 2020-15, amending Chapter 5.95 (Short Term Lodging Permit) of the NBMC. 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. The ordinance requires 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. • In October 2020, the City Council adopted Ordinance No. 2020-26 (Attachment B), amending portions of NBMC Chapter 5.95, as recommended by the Ad Hoc Committee, relating to short-term lodging citywide that consisted of the following - 26 -2 Ordinance No. 2021-28: A Code Amendment Related to Short -Term Lodging Citywide and on Newport Island (PA2020-048 and PA2020-326) November 30, 2021 Page 3 o Minimum Night Stay- Require a minimum three -night stay; o Limits on Permits- Establish a maximum cap of 1,550 permits and create a waiting list for new permits once cap is reached; o Transferability- Include provisions clarifying the transferability of permits and establishing when a permit is deemed abandoned; o Minimum Age- Prohibit the rental to users under the age of 25; and o Responsibility for Parking Violations- Allows owner of the short-term rental unit to be cited if a user receives a parking ticket while utilizing a short-term lodging unit. LCP Amendments On October 13, 2020, the City Council also approved Resolution 2020-91 (Attachment C) authorizing the submittal of LCP Amendment No. LC2020-007 to the California Coastal Commission (CCC) to incorporate the maximum cap of 1,550 permits and minimum three - night stay requirements applicable to properties citywide into Title 21. On April 13, 2021, the City Council adopted Resolution No. 2021-30 (Attachment D) authorizing submittal of LCP Amendment No. LC2020-008 to the CCC to incorporate additional short-term lodging regulations affecting Newport Island into Title 21 as follows: • Limits on Permits- Limit a maximum of 20 permits in Newport Island; • Require on-site property owner and management- Any existing short-term lodging permits that do not comply 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 comply with new requirements: • Allow a maximum of one rental per week; • Overnight Occupancy Limits- Restrict overnight occupancy to two persons per bedroom, plus two additional persons, with a maximum overnight occupancy of 10 persons; • Daytime Occupancy Limits- Limit daytime occupancy, between the hours of 7 a.m. and 10 p.m., to a number equal to the overnight occupancy limit plus six additional persons; and 26-3 Ordinance No. 2021-28: A Code Amendment Related to Short -Term Lodging Citywide and on Newport Island (PA2020-048 and PA2020-326) November 30, 2021 Page 4 • Minimum Parking Requirements- Require a rental unit to provide a minimum of one parking space that is free and unobstructed for renter use, and if only one space is available, overnight occupancy shall be restricted to a maximum of five persons. Coastal Commission Action and Acceptance of Suggested Modifications The CCC reviewed both LCP Amendments related to short-term lodging citywide and on Newport Island at its October 13, 2021, hearing. The CCC approved the amendments as submitted, with the exception of suggested modifications related to minimum night stay, conversions of multi -unit structures, and parking clarifications. The CCC approval letters, including suggested modifications, are included as Attachment E for the citywide amendment (LC2020-007) and Attachment F for the Newport Island specific amendment (LC2020-008). The City Council must either accept or reject all these suggested modifications. If the City Council rejects the suggested modifications, both LCP amendments would effectively expire, and the revised regulations would not go onto effect. In other words, the 1,550 - permit cap, two -night minimum night stay requirement, Newport Island specific regulations, and related provisions in Chapter 5.95 regarding transferability and waiting list procedures could not be implemented. Should the City Council want to partially accept the suggested modifications, the City would need to process a new LCP amendment application and attempt to obtain CCC approval. The proposed ordinance accepts and incorporates all the CCC suggested modifications into the LCP Amendments. A redline strikeout version of the proposed code revisions is included as Attachment G. A summary of the suggested modifications to citywide amendment (LC2020-007) affecting both Title 21 and Chapter 5.95 of NBMC: Reduced Minimum Night Stay (Two nights) The proposed minimum night stay requirement is intended to reduce the number of disturbances at short-term lodging units and the demand on Police and Fire Department personnel services. Specifically, this provision would discourage the use of short-term lodging units for non-residential purposes (e.g., large gatherings, weddings, and commercial filming), and encourage vacationers to spend multiple days visiting the beach and other sites in the area. The CCC determined that a three -night minimum would significantly increase the cost associated with weekend rentals for low- and moderate -income visitors and in many instances, make the entire visit unaffordable. Short-term lodgings provide amenities that often make them the most affordable option for overnight stays on the coast, particularly for groups and families when restaurant meals and parking costs saving are considered. 26-4 Ordinance No. 2021-28: A Code Amendment Related to Short -Term Lodging Citywide and on Newport Island (PA2020-048 and PA2020-326) November 30, 2021 Page 5 Acknowledging the City's intent in providing a minimum night stay to prevent single -day rentals, the CCC reduced the proposed three -night minimum stay to a less prohibitive two -night minimum stay. Restricting Apartment Conversions to Short -Term Lodging While the CCC embraces short-term lodging as a means of providing lower-cost visitor accommodations, they also recognize that short-term lodgings may reduce the availability of rental housing opportunities in coastal areas. Therefore, the CCC adopted a suggested modification limiting the number of units within a multi -unit structure consisting of five or more units that can be converted into short-term lodging to no more than 20 percent of the total number of units within the development. For example, the owner of a five -unit apartment complex would be limited to a maximum of one short-term lodging permit. However, the owner of multi -unit structures consisting of four units or less, such as a duplex, would continue to be allowed to utilize all units for short-term lodging. A summary of the Suggested Modifications to Newport Island Specific Amendment (LC2020-008) affecting Title 21 of NBMC only: Clarifying Minimum Parking Requirements The intent of the proposed minimum parking requirements was to ensure that a unit used for short-term lodging provides at least one on-site space that is open and available for use by a renter to minimize demand for on -street parking. The CCC suggested modification makes a minor point of clarification that the required parking space is not intended to be a new additional space, but rather an existing space may satisfy this requirement. FISCAL IMPACT: There is no fiscal impact related to this item. ENVIRONMENTAL REVIEW: Pursuant to the authority and criteria contained in the California Environmental Quality Act (CEQA), Local Coastal Program Amendment No. LC2020-007 and Local Coastal Program Amendment No. LC2020-008 are statutorily exempt from CEQA pursuant to 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 the LCP Amendments have no potential for resulting in physical change to the environment, directly or indirectly. The proposed LCP Amendments are 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 Amendments themselves provide 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. 26-5 Ordinance No. 2021-28: A Code Amendment Related to Short -Term Lodging Citywide and on Newport Island (PA2020-048 and PA2020-326) November 30, 2021 Page 6 NOTICING: 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 July 14, 2020, and November 20, 2020, to all persons and agencies on the Notice of Availability mailing list and posted online. Notice of this amendment was published in the Daily Pilot as an eighth -page advertisement, consistent with the provisions of the Municipal Code. The item also appeared on the agenda for this meeting, which was posted at City Hall and on the City website. In addition, notice of this hearing was 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 14 properties that currently maintain a short-term lodging permit on Newport Island, at least 10 days before the scheduled meeting. ATTACHMENTS: Attachment A — Ordinance No. 2021-28 Attachment B — Ordinance No. 2020-26 Attachment C — Resolution No. 2020-91 (LC2020-007) Attachment D — Resolution No. 2021-30 (LC2020-008) Attachment E — CCC Approval Letter and Suggested Modifications (LC2020-007) Attachment F — CCC Approval Letter and Suggested Modifications (LC2020-008) Attachment G — Redline Strikeout Version of Proposed Code Revisions 26-6 ATTACHMENT A ORDINANCE NO. 2021-28 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING CHAPTER 5.95 (SHORT TERM LODGING PERMIT) AND TITLE 21 (LOCAL COASTAL PROGRAM IMPLEMENTATION PLAN) OF THE NEWPORT BEACH MUNICIPAL CODE RELATING TO SHORT TERM LODGING, AND ADOPTING LOCAL COASTAL PROGRAM AMENDMENT NO. LC2020-007 RELATED TO SHORT TERM LODGING AND LOCAL COASTAL PROGRAM AMENDMENT NO. LC2020-008 RELATED TO SHORT TERM LODGING ON NEWPORT ISLAND (PA2020-048 AND PA2020-326) WHEREAS, Section 200 of the Charter 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; WHEREAS, this influx of tourists and the accompanying volume of vehicle traffic burdens City streets and places heavy demand on parking, sewage and refuse facilities, and paramedic and police services due to frequent complaints of noise disturbances, disorderly conduct and other nuisance or illegal activity at short term lodging units; 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 California Penal Code related to disorderly conduct when violated by occupants of short term lodging units; WHEREAS, the presence of short term lodging within the City's residential neighborhoods can disrupt the quietude and residential character of those 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; 26-7 Ordinance No. 2021 - Page 2 of 16 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, requiring a 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 maintains the City's large capacity for short term lodging, while guarding against future impacts that unregulated expansion would create; 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 three parcels (two percent of the 157 total units) were utilized for short term lodging. 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. 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. 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; M. Ordinance No. 2021- Page3of 16 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 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; 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"), which has been amended from time to time, most recently on September 14, 2021, by Resolution No. 2021-79; WHEREAS, the California Coastal Commission ("Coastal Commission") effectively certified the City's Local Coastal Implementation Plan on January 13, 2017, which the City added as Title 21 (Local Coastal Program Implementation Plan) ("Title 21 ") to the Newport Beach Municipal Code ("NBMC"), whereby the City assumed coastal development permit -issuing authority; WHEREAS, on October 13, 2020, the City Council adopted Resolution No. 2020- 91 authorizing submittal to the Coastal Commission LCP Amendment No. LC2020-007 relating to citywide short term lodging regulations and also adopted Ordinance No. 2020- 26 amending portions of Chapter 5.95 of Title 5 of the NBMC relating to short term lodging; WHEREAS, on April 13, 2021, the City Council adopted Resolution No. 2021-30 authorizing submittal to the Coastal Commission LCP Amendment No. LC2020-008 relating to short term lodging on Newport Island and which amended LCP Amendment No. LC2020-007; WHEREAS, LCP Amendment Nos. LC2020-007 and 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; WHEREAS, at its October 13, 2021 hearing, the Coastal Commission approved with modifications the amendments by Ordinance No. 2020-26 to NBMC Chapter 5.95 and certified LCP Amendment Nos. LC2020-007 with modifications (LCP-5-NPB-20-0070- 3) and LC2020-008 with modifications (LCP-5-NPB-21-0036-1 Part C) as being consistent with the California Coastal Act; and 26-9 Ordinance No. 2021 - Page 4 of 16 WHEREAS, a public hearing was held by the City Council on November 30, 2021, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the public hearing was given in accordance with the Ralph M. Brown Act and Chapter 21.62 of the NBMC. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council hereby accepts the suggested modifications approved by the California Coastal Commission. Section 2: 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. 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. 26-10 Ordinance No. 2021 - Page 5 of 16 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 3: 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 4: 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 5: 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. 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: 26-11 Ordinance No. 2021 - Page 6 of 16 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. 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. 26-12 Ordinance No. 2021 - Page 7 of 16 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 6: 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 7: 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. Section 8: Section 5.95.042 of Chapter 5.95 of Title 5 of the Newport Beach Municipal Code is hereby added to read as follows: 26-13 Ordinance No. 2021 - Page 8 of 16 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). To avoid wholesale conversion of existing and new housing complexes into short term lodgings, multi -unit developments with five or more units may permit a maximum of twenty (20%) of the total number of units to be short term lodgings (rounded down to the nearest whole number). 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. 26-14 Ordinance No. 2021 - Page 9 of 16 Section 9: 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 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. 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 26-15 Ordinance No. 2021 - Page 10 of 16 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 10: Section 5.95.045, Subsection (A), condition number twenty-one (21) of Chapter 5.95 of Title 5 of the Newport Beach Municipal Code is hereby amended 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 two (2) consecutive nights. Section 11: 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.- 21-18-020 ollows: 21.18.020 Residential Coastal Zoning Districts Land Uses. Table 21.18-1 Land Use R -BI R-1 R-2 R-1- R-2- RM R -A 6,000 6,000 RM -6,000 Specific Use Regulations Residential Uses Short -Term Lodging — A A Chapter 5.95 and Section 21.48.115 26-16 Ordinance No. 2021 - Page 11 of 16 Section 12: 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 January 13, 2022, 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. To avoid wholesale conversion of existing and new housing complexes into short-term lodgings, multi -unit developments with five or more units may permit a maximum of twenty percent (20%) of the total number of units to be short-term lodgings (rounded down to the nearest whole number). 4. 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: 26-17 Ordinance No. 2021 - Page 12 of 16 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 two (2) 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. D. Additional Permit Conditions for Newport Island (Map A-16). To the extent there is any conflict between this subsection and other provisions of the Code related to short- term rentals on Newport Island (Map A-16), this subsection shall govern and control. 1. 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 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 January 13, 2022, 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 26-18 Ordinance No. 2021 - Page 13 of 16 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. 2. An owner, agent, or other person shall only be allowed to rent a dwelling unit on Newport Island 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. 3. The owner and/or agent shall limit the overnight occupancy of the short- term lodging unit on Newport Island to the lesser of: (a) the number of occupants that can be accommodated consistent with the on-site parking requirement set forth in subsection (D)(4) below, or (b) two persons per bedroom plus two additional persons, up to a maximum of ten persons. Additional daytime guests are allowed between the hours of 7:00 a.m. and 10:00 p.m. with the maximum daytime occupancy limited to a number equal to maximum overnight occupancy plus six additional persons. The occupancy restrictions set forth in this subsection shall be set forth in a written rental agreement. 4. Each short-term lodging unit on Newport Island shall provide a minimum of one parking space in an existing garage or carport. Occupancy shall be limited to a maximum of five overnight guests for a short-term lodging unit providing only one parking space. The parking required by this subsection shall be free of obstructions and available for use by the short-term lodging user. 5. Any existing permit holder of a dwelling unit that is not located on an owner - occupied lot per subsection (D)(2) or does not meet the parking requirements of subsection (D)(4) will be permitted to retain their permit until January 13, 2023. 6. No owner, agent, or other person shall rent or let a short-term lodging unit on Newport Island more than once in any seven (7) consecutive day period. Section 13: 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 14: Amend Section 21.80.010 (Area Maps) of Chapter 21.80 (Maps) of the NBMC to include the following map: 26-19 Ordinance No. 2021 - Page 14 of 16 A-16 — Newport Island (PDF) yOgG C),,R/yFRA� ...•33C�,.. OOA57,wy, z 4 akBOA COVE5 ►yam Q a pay 4 B O pp 4�S�yt �7e bOAa a� 9 9 �1D e�( �'1'Si . rSr 404 sF jo 4 A�S< V',, t o0 yG R FlkIEYAVE $ A-16 Newport Island - DRAFT [J Section 15: The LCP, including LCP Amendment Nos. LC2020-007 and LC2020- 008, will be carried out fully in conformity with the California Coastal Act. Section 16: The recitals provided in this ordinance are true and correct and are incorporated into the operative part of this ordinance. Section 17: The City Council hereby authorizes City staff to submit this ordinance for a determination by the Executive Director of the Coastal Commission that this action is legally adequate to satisfy the specific requirements of the Coastal Commission's October 13, 2021, actions on LCP Amendment Request Nos. LCP-5-NPB-20-0070-3 (Short -Term Lodging) and LCP-5-NPB-21-0036-1 Part C (Newport Island Short -Term Lodging). 26-20 Ordinance No. 2021 - Page 15 of 16 Section 18: This ordinance shall not become effective for thirty days after adoption and until the Executive Director of the Coastal Commission certifies that this ordinance complies with the Coastal Commission's October 13, 2021, actions on LCP Amendment Request Nos. LCP-5-NPB-20-0070-3 (Short -Term Lodging) and LCP-5-NPB-21-0036-1 Part C (Newport Island Short -Term Lodging). Section 19: 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 20: The City Council finds the adoption of this ordinance 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 amendments to NBMC Chapter 5.95 and the LCP Amendments provide additional regulations on short-term lodging, which is an existing, permitted use, and thus do not authorize development that would directly result in physical change to the environment. Section 21: 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. Sections 1 through 8 and the portion of Section 10, which added Subsection 21, to Section 5.95.045, Chapter 5.95 of Title 5, of Ordinance 2020-26, are hereby superseded by this ordinance. Section 22: 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. 26-21 Ordinance No. 2021 - Page 16 of 16 This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 30th day of November 2021, and adopted on the 14th day of December, 2021, by the following vote, to -wit: AYES: NAYS: ABSENT: RECUSED: BRAD AVERY, MAYOR UX61=616 LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CI ATTORNEY'S OFFICE A, C ff a�- AAON C. HARP, CITY ATTORNEY 26-22 ATTACHMENT B City Council Ordinance No. 2020-26 26-23 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; 26-24 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. 26-25 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. 26-26 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. 26-27 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. 26-28 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. 26-29 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. 26-30 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 26-31 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. 26-32 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. 26-33 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 26-34 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 1311 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. t LeilaVii I. Brown, MMC City Clerk City of Newport Beach, California CERTIFICATE OF PUBLICATION STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, LEILANI 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: 2020. Introduced Ordinance: October 17, 2020 Adopted Ordinance: October 31, 2020 In witness whereof, I have hereunto subscribed my name this day of Leilani I. Brown, MMC City Clerk City of Newport Beach, California 26-35 ATTACHMENT C City Council Resolution No. 2020-91 (LC2020-007) 26-36 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; 26-37 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. 26-38 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: 26-39 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: 26-40 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. 26-41 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 26-42 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 26-43 ATTACHMENT D City Council Resolution No. 2021-30 (LC2020-008) 26-44 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; 26-45 Resolution No. 2021-30 Page 2 of 9 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; 26-46 Resolution No. 2021-30 Page 3 of 9 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; 26-47 Resolution No. 2021-30 Page 4 of 9 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. Resolution No. 2021-30 Page 5 of 9 4. 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. 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. 26-49 Resolution No. 2021-30 Page 6 of 9 D. Additional Permit Conditions for Newport Island (Map A-16). To the extent there is any conflict between this subsection and other provisions of the Code related to short- term rentals on Newport Island (Map A-16), this subsection shall govern and control. 1. 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, 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. 2. An owner, agent, or other person shall only be allowed to rent a dwelling unit on Newport Island 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. 3. The owner and/or agent shall limit the overnight occupancy of the short- term lodging unit on Newport Island to the lesser of: (a) the number of occupants that can be accommodated consistent with the on-site parking requirement set forth in subsection (D)(4) below, or (b) two persons per bedroom plus two additional persons, up to a maximum of ten persons. Additional daytime guests are allowed between the hours of 7:00 a.m. and 10:00 p.m. with the maximum daytime occupancy limited to a number equal to maximum overnight occupancy plus six additional persons. The occupancy restrictions set forth in this subsection shall be set forth in a written rental agreement. 4. Each short-term lodging unit on Newport Island shall provide a minimum of one parking space in a garage or carport. Occupancy shall be limited to a maximum of five overnight guests for a short-term lodging unit providing only one parking space. The parking required by this subsection shall be free of obstructions and available for use by the short-term lodging user. 5. Any existing permit holder of a dwelling unit that is not located on an owner - occupied lot per subsection (D)(2) or does not meet the parking requirements of subsection (D)(4) will be permitted to retain their permit until [ONE YEAR AFTER EFFECTIVE DATE OF ORDINANCE]. 26-50 Resolution No. 2021-30 Page 7 of 9 6. No owner, agent, or other person shall rent or let a short-term lodging unit on Newport Island more than once in any seven (7) consecutive day period. 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 efinition: "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) a NOAG OR RNERAV,; ��,5'( COAST ry Wy W ...• A z 0 S' "I CHANNEL PL 8k13QA COVES Aye ?o m a� t Q� e SV Q � 9 �•�� p�F .� �� SHORT �\0o�9A ST V�AUDO 2s �% 5� 4 ,� phi` FINLEYAVF p p L A-16 Newport Island - DRAFT 47 26-51 Resolution No. 2021-30 Page 8 of 9 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. 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. 26-52 Resolution No. 2021-30 Page 9 of 9 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 v Iz-, r, �� Bra ery Mar ATTEST: 0,0 rm 26-53 Leilani I. Brown — n City Clerk r -- C'q APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaron C. Harp City Attorney 26-53 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. 2021-30 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 131h day of April, 2021; and the same was so passed and adopted by the following vote, to wit: AYES: Mayor Brad Avery, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield NAYS: Mayor Pro Tem Kevin Muldoon, Council Member Noah Blom, Council Member Will O'Neill IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 141h day of April, 2021. 0,'—Leilani I. Brown City Clerk Newport Beach, California 26-54 ATTACHMENT E Coastal Commission Approval Letter and Suggested Modifications (LC2020-007) 26-55 1. STATE OF CALIFORNIA - NATURAL RESOURCES AGENCY CALIFORNIA COASTAL COMMISSION SOUTH COAST DISTRICT OFFICE 301 E. OCEAN BLVD., SUITE 300 LONG BEACH, CA 90802 (562)590-5071 Jaime Murillo, Principal Planner Community Development Department City of Newport Beach 100 Civic Center Drive Newport Beach CA 92660 GAVIN NEWSOM, GOVERNOR October 18, 2021 Re: City of Newport Beach LCP Amendment Request No. LCP-5-NPB-20-0070-3 (Short Term Lodging) Dear Mr. Murillo: You are hereby notified that the California Coastal Commission, at its October 13, 2021 meeting, approved City of Newport Beach Local Coastal Program (LCP) Amendment No. LCP-5-NPB-20-0070-3 with suggested modifications. The amendment to the Implementation Plan (IP) portion of the Newport Beach certified LCP will amend IP Section 21.48.115 (Short Term Lodging). The LCP amendment will be fully effective once: 1. The City of Newport Beach City Council adopts the Commission's suggested modifications, 2. The City of Newport Beach City Council forwards the adopted suggested modifications to the Commission by Resolution, and, 3. The Executive Director certifies that the City has complied with the Commission's October 13, 2021 action. The Coastal Act requires that the City's adoption of the suggested modifications be completed within six (6) months of the Commission's action. Pursuant to the Commission's action on October 13, 2021, certification of LCP Amendment No. LCP-5- NPB-20-0070-3 is subject to the attached Suggested Modifications (Attachment "A"). Thank you for your cooperation and we look forward to working with you and your staff in the future. If you have any questions regarding the modifications required for effective certification of this LCP amendment, please contact Liliana Roman at our Long Beach office (562) 590-5071. Sincerely, Zach Rehm, South Coast District Supervisor Page 1 of 4 26-56 Attachment "A" Suggested Modifications 26-57 Suggested Modification #1 — Modify proposed new IP Section 21.48.115(D)6 as follows: 6. Not rent. let, advertise for rent. or enter into an aareement for the rental of any lodging unit, for less than (3) two2 consecutive nights. Suggested Modification #2 — Add the following language to the end of the proposed new IP Section 21.48.115(C) as follows: 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). To avoid wholesale conversion of existina and new housing complexes into short-term lodainas, multi -unit developments with five or more units may permit a maximum of twenty percent 20%) of the total number of units to be short term lodainas (rounded down to the nearest whole number). Suggested Modification #3 — Reflect Suggested Modification #2 language in Title 5 Chapter 5.95, Section 5.95.042(A): 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). To avoid wholesale conversion of existing and new housing complexes into short- term lodainas, multi -unit developments with five or more units may permit a maximum of twenty (20%) of the total number of units to be short-term lodainas (rounded down to the nearest whole number). 26-58 Suggested Modification #4 — Reflect Suggested Modification #1 language to reduce the minimum number of rental nights from 3 to 2 nights in Title 5 Chapter 5.95, Section 5.95.045(A)(21): 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 two 2 consecutive nights. 26-59 ATTACHMENT F Coastal Commission Approval Letter and Suggested Modifications (LC2020-008) 26-60 `STATE OF CALIFORNIA - NATURAL RESOURCES AGENCY CALIFORNIA COASTAL COMMISSION .SOUTH COAST DISTRICT OFFICE 301 E. OCEAN BLVD., SUITE 300 LONG BEACH, CA 90802 (562) 590-5071 GAVIN NEWSOM, GOVERNOR October 18, 2021 Jaime Murillo, Principal Planner Community Development Department City of Newport Beach 100 Civic Center Drive Newport Beach CA 92660 Re: City of Newport Beach LCP Amendment Request No. LCP-5-NPB-21-0036-1 Part C (Newport Island Short Term Lodging) Dear Mr. Murillo: You are hereby notified that the California Coastal Commission, at its October 13, 2021 meeting, approved City of Newport Beach Local Coastal Program (LCP) Amendment No. LCP-5-NPB-21-0036-1 Part C with suggested modifications. The amendment to the Implementation Plan (IP) portion of the Newport Beach certified LCP will amend IP Section 21.48.115 (Short Term Lodging). The LCP amendment will be fully effective once: 1. The City of Newport Beach City Council adopts the Commission's suggested modifications, 2. The City of Newport Beach City Council forwards the adopted suggested modifications to the Commission by Resolution, and, 3. The Executive Director certifies that the City has complied with the Commission's October 13, 2021 action. The Coastal Act requires that the City's adoption of the suggested modifications be completed within six (6) months of the Commission's action. Pursuant to the Commission's action on October 13, 2021, certification of LCP Amendment No. LCP-5- NPB-21-0036-1 Part C is subject to the attached Suggested Modifications (Attachment „A„ Thank you for your cooperation and we look forward to working with you and your staff in the future. If you have any questions regarding the modifications required for effective certification of this LCP amendment, please contact Liliana Roman at our Long Beach office (562) 590-5071. Sincerely, Zach Rehm, South Coast District Supervisor Page 1 of 3 26-61 Attachment "A" Suggested Modifications 26-62 Suggested Modification #1 — Modify proposed new IP Section 21.48.115(D)4 as follows: 4. Each short-term lodging unit on Newport Island shall provide a minimum of one parking space in an existing garage or carport. Occupancy shall be limited to a maximum of five overnight guests for a short-term lodging unit that sing only one parking space. The parking required by this subsection shall be free of obstructions and available for use by the short-term lodging user. Suggested Modification #2 — Clarification regarding changes to IP Section 21.48.115 approved by the Commission under LCP Amendment No. LCP-5-NPB-20-0070-3: Amendments to the language of IP Section 21.48.115 and Chapter 5.95 approved by the Commission under LCP Amendment No. LCP-5-NPB-20-0070-3 at its October 13. 2021 meeting shall be reflected in this subject LCP Amendment No. LCP-5-NPB-21-0036-1 Part C. 26-63 ATTACHMENT G Redline Strikeout Revisions 26-64 Redline Strikeout Revisions to Chapter 5.95 and Title 21 Related to Short Term Lodging Chapter 5.95 Revisions (Affected Sections) 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 Permits 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. 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. C. Many of the occupants of short term lodging units are permanent residents of areas distant from Newport Beach and the City has no effective way to prevent occupants from continuing to violate provisions of the 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. 26-65 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. 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 Gontini ied burden en City cen,ir ec gni-! adverse impacts on residential neighborhoods posed by short term lodgings. 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; short term I.,.-lg4Kj nermi+ the management of the short term lodging unit or units, and the compliance with the GeRditinno to 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. 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 er Yevr Rewal thereof, shall be filed with the Finance Director upon forms provided by the City_ and shal Gontain the following information: 26-66 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: Al. 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. S3. Evidence of a valid business license issued by the City for the separate business of operating a short term lodging unit or units. S4. The number of bedrooms in the lodging unit. €5. The gross floor area of the lodging unit. F-6. The number of parking spaces available onsite and a description indicating the location and size of each parking space. t . A nuisance response plan, which sets forth the owner's plan for handling disruptive guests. 98. 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. Acknowledgement of receipt and inspection of a copy of all regulations pertaining to the operation of a short term lodging unit. 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. 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. 26-67 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 ahandoned_ 5.95.035 Denial of Permit. If permits are available for issuance, no timely application filed by an owner for an annual permit., er 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 for a „r,i+ eligible to he used as a chert term lerdg'Rg , ini+ 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 for a new annual permit, the renewal of an existing permit, the reinstatement of a permit, or the transfer of a er renewal appliGatien fer a chert term lerdgiRg 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. 5.95.042 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 Dermits that have been issued as of the effective date of this section. an owner shall be itted to renew. reinstate. or transfer a valid Dermit in accordance with the Drovisions 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). To avoid wholesale conversion of existing and new housing complexes into short-term lodgings, multi -unit developments with five or more units may permit a maximum of twenty (20%) of the total number of units to be short-term lodgings (rounded down to the nearest whole number). 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). 26-68 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. 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 sixtv-five (365) days of the date title is transferred to the inter vivos trust. familv 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 Dermit. in accordance with Section 5.95.030. is filed within three hundred and sixtv-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 familv member. 26-69 4. If the owner sells the lodaina 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. 5. If the owner is deceased. the short term lodaina permit for the short term lodain 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 U 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_ 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 twenty-five (25). 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 (A)(3) of this section. 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. 26-70 7. The owner of the short term lodging unit shall use best efforts to ensure compliance with all the provisions of Title 6. 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. 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 on-site 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 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 and Chapters 3.16 and 3.28. 26-71 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 resides 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 business days, if there is a change in the local contact person(s). 13. The owner shall ensure that all available parking spaces on site, 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 on site 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 nonresidential uses, including, but not limited to, large commercial or non-commercial gatherings, commercial filming and/or nonowner 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 and 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 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. 26-72 20. The owner shall provide the City with a copy of any written rental agreement(s) and the good neighbor policy, within seven 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. 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 two (2) 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 C. Provide the City with the vehicle license plate number(s) for every vehicle which was 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. 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. 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. 26-73 Title 21 (Local Coastal Program Implementation Plan) Revisions- Affected Sections 21.18.020 Residential Coastal Zoning Districts Land Uses. Table 21.18-1 Land Use R -BI R-1 R-2 R-1- R-2- RM R -A 6,000 6,000 RM -6,000 Specific Use Regulations Residential Uses Short -Term Lodging — — A A Chapter 5.95 and Section 21.48.115 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. No owner of a short-term lodaina unit shall advertise for rent. or rent a lodaina 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 Dermit in accordance with the provisions of Chapter 5.95. 3. As set forth in Section 5.95.042. of Chaster 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 January 13, 2022, 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. To avoid wholesale conversion of existing and new housing complexes into short-term lodgings, multi -unit developments with five or units may permit a maximum of twentv Dercent (20%) of the total number of units to be short-term Iodainas (rounded down to the nearest whole number). 26-74 4. 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: 1. By written sFeral agreement, limit overnight occupancy of the short-term lodging unit to a speGifiG RuRciber Of GGGWpaRtG, with the Rumber Of GGGWpaRtG REA tG eXG the maximum permitted Building Code and Fire Code GGGWpaRGY limitS. 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 eCode 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, occupants and/or guests of his or her short term lodging unit have has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations vielate nrn„ici„nc of this sCode or any Estate 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 those any transient user, occupants or guests. 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 a two (2) consecutive niahts. 67. 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. D. Additional Permit Conditions for Newport Island (Map A-16). To the extent there is any conflict between this subsection and other provisions of the Code related to short-term rentals on Newport Island (Map A-16), this subsection shall govern and control. 1. In addition to the restriction set forth in Section 5.95.042 and subsection (B)(3), the maximum number of short-term lodging permits issued for units located on Newport Island, 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 January 13, 2022, 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 26-75 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. An owner, agent, or other person shall only be allowed to rent a dwelling unit on Newport Island 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. The owner and/or agent shall limit the overnight occupancy of the short-term lodging unit on Newport Island to the lesser of: (a) the number of occupants that can be accommodated consistent with the on-site parking requirement set forth in subsection (D)(4) below, or (b) two persons per bedroom plus two additional persons, up to a maximum of ten persons. Additional daytime quests are allowed between the hours of 7:00 a.m. and 10:00 p.m. with the maximum daytime occupancy limited to a number equal to maximum overnight occupancy plus six additional persons. The occupancy restrictions set forth in this subsection shall be set forth in a written rental agreement. 4. Each short-term lodging unit on Newport Island shall provide a minimum of one parking space in an existing garage or carport. Occupancy shall be limited to a maximum of five overnight quests for a short-term lodging unit providing only one parking space. The parking required by this subsection shall be free of obstructions and available for use by the short-term lodging user. Any existing permit holder of a dwelling unit that is not located on an owner - occupied lot per subsection (D)(2) or does not meet the parking requirements of subsection (D)(4) will be permitted to retain their permit until January 13, 2023. No owner, agent, or other person shall rent or let a short-term lodging unit on Newport Island more than once in any seven (7) consecutive day period. 21.70.020 (Definitions of Soecialized Terms and Phrases "Dwelling unit, owner -occupied" means a dwellinq 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 leaal domicile and permanent residence. 21.80.010 (Area Maps) A-16 — Newport Island (PDF) 26-76 0 A-16 Newport Island - DRAFT "W Q IW 44W SAG DR '`r COAST, ti.,, W 4 BplBOR COVER ■ 4 M IPPIA 9 ��_. O FRVLEI'AVE S 26-77