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HomeMy WebLinkAbout3.0_Municipal Code and LCP Amendments Related to Short Term Lodging_PA2023-0116CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT October 19, 2023 Agenda Item No. 3 SUBJECT: Municipal Code and LCP Amendments Related to Short Term Lodging (PA2023-0116) ▪Code Amendment ▪Local Coastal Program Amendment SITE LOCATION: Citywide PROPONENT: City of Newport Beach PLANNER: Jaime Murillo, AICP, Planning Manager (949) 644-3209 or jmurillo@newportbeachca.gov PROJECT SUMMARY Amendments to Chapter 5.95 (Short Term Lodging Permit), Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code related to short term lodging that include the following: •Establishing regulations permitting short term lodging within the MU-W2 (Mixed- Use Water) and MU-CV/15th Street (Mixed-Use Cannery Village and 15th Street) zoning districts; •Changing the maximum cap of short term lodging permits from 1,550 permits Citywide to: 1) 1,475 permits in residential districts; and 2) 75 permits within the MU-W2 and MU-CV/15th Street zoning districts; •Correcting an inconsistency in the definition and use of short term lodging and bed and breakfast inn to mean a rental of 30 days or less; and •Revisions related to violations, suspensions, revocations, and permit closures. RECOMMENDATION 1)Conduct a public hearing; 2)Find the recommended actions and the attached resolution exempt from 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, Chapter 3, 1 INTENTIONALLY BLANK PAGE2 Municipal Code and LCP Amendments Related to Short Term Lodging (PA2003-0116) Planning Commission, October 19, 2023 Page 2 because it has no potential for resulting in physical change to the environment, directly or indirectly; 3)Adopt Resolution No. PC2023-037 recommending the City Council adoption of a Code Amendment to Chapter 5.95 (Short Term Lodging Permit) and Title 20 (Planning and Zoning) of the Newport Beach Municipal Code related to short term lodging (PA2023-0116) (Attachment No. PC 1); and 4)Adopt Resolution No. PC2023-038 recommending the City Council authorize submittal of a Local Coastal Plan Amendment to the California Coastal Commission requesting to amend Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code related to short term lodging (PA2023-0116) (Attachment No. PC 2). INTRODUCTION On May 23, 2023, the City Council initiated amendments and directed the Planning Commission to identify opportunities to modify Titles 20 and 21 of the Newport Beach Municipal Code to facilitate new visitor serving accommodation opportunities within the MU-W2 (Mixed-Use Water) and MU-CV/15th St. (Mixed-Use Cannery Village and 15th Street) zoning districts. The direction also included several considerations: 1) applicability to multi-unit residential developments with 20 or more residential units under common ownership, 2) requirement for professional management, 3) requirement for project amenities, and 4) where there are no parking impacts that could reduce the availability of parking in residential neighborhoods. On June 22, 2023, the Planning Commission discussed the potential to amend the Municipal Code to facilitate new visitor serving accommodations in the zones identified. It was discussed that the MU-W2 and MU-CV/15th Street zoning districts currently allow hotels, motels, and timeshares subject to a conditional use permit. Bed and breakfast operations are allowed in the MU-CV/15th Street zone with a conditional use permit, but they are not permitted in the MU-W2 zone. Short-term rentals are not allowed in any mixed-use zones currently. The Planning Commission directed staff to return at a future date with a report and recommendations focused on the matter (Attachment No. PC 3- meeting minutes). DISCUSSION Proposed Amendments to Allow Short Term Lodging in Mixed Use Zones The proposed amendments to Title 20 and Title 21 of the NBMC would reinstate short term lodging as an allowable use within the MU-W2 and MU-CV/15th Street zoning districts 3 Municipal Code and LCP Amendments Related to Short Term Lodging (PA2003-0116) Planning Commission, October 19, 2023 Page 3 (Attachment PC 4) subject to existing short term lodging regulations and additional eligibility criteria identified by the City Council. Changes to Maximum Cap – The City’s existing maximum cap of short term lodging permits in the City is 1,550 permits. The amendment would not increase the total number of permits, but it would allow up to 75 permits in the MU-W2 and MU-CV/15th Street zoning districts and 1,475 permits in residential districts. This would maintain the total allowance for this type of visitor accommodations in the City without altering existing regulations on short term lodging previously adopted that protect residential neighborhoods. In fact, lowering the number of short term lodging permits in residential neighborhoods would enhance protection of residential neighborhoods. Eligibility – Pursuant to City Council direction, to be eligible for a new short-term lodging permit in the MU-W2 and MU-CV/15th Street zoning districts the proposed amendment would require an applicant to: 1.Own twenty (20) or more units within the same Statistical Area (Attachment No. PC 5) located in the MU-W2 and/or MU-CV/15th St. zoning districts. Common ownership is defined as the same person, entity or managing partner holding legal and/or equitable title to no less than fifty percent (50%) of each property or entity. This location requirement and minimum ownership threshold will help with accountability and enforcement by ensuring that the City can have a stronger working relationship with fewer operators. 2.Employ professional management to ensure code requirements are met and to increase accountability. 3.Create a management plan that ensures among other things that on-site amenities are provided to guests, and no parking impacts are created in surrounding residential zones. Definition Update Pursuant to NBMC Chapter 3.16 (Uniform Transient Occupancy Tax), a tax is required to be paid for the privilege of occupying certain visitor accommodations, including short term lodging units. The term “transient” means any individual who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of thirty (30) consecutive calendar days or less. Unfortunately, the term short term and short term lodging as used in Chapter 5.95 and in Title 20 and Title 21 of the NBMC define short term as a lodging unit that is rented or leased as a single housekeeping unit for a period of less than thirty (30) consecutive calendar days. To correct this inconsistency throughout the NBMC, the durations within references to short term or short term lodging is proposed to mean “a period of thirty (30) consecutive calendar days or less.” The duration within the definition of bed and breakfast inn is also proposed to be updated for consistency. 4 Municipal Code and LCP Amendments Related to Short Term Lodging (PA2003-0116) Planning Commission, October 19, 2023 Page 4 Updates to Violations, Suspensions, Revocations, and Permit Closures Due to the current maximum cap of short term lodging permits, the City has found that several permit holders are holding onto their permits but not actually conducting short term lodging activities or paying transient occupancy taxes. While NBMC Section 5.95.080 (License and Permit Closure) authorizes the City to close any permit that has no short term lodging activity for a period of two consecutive annual reporting periods, an owner may reapply for reinstatement of the short term lodging permit an unlimited number of times. Therefore, to encourage permit holders to use their short term lodging privileges and to help those property owners on the waiting list obtain a short term lodging permit sooner, the amendment proposes a one-time allowance to reinstate a permit that has been closed for nonuse. Other minor clean-up and procedural updates are proposed throughout NBMC Chapter 5.95 primarily intended to eliminate ambiguities within the Code related to violations, suspensions, revocations, and permit closures. Redline strikeouts illustrating the revised code provisions are included as Attachment No. PC 6. History of Short Term Lodging in Mixed-Use Zones Short term lodging (STL) is a dwelling unit that is rented or leased for a period of 30 days or less (as proposed to be amended). The City initially regulated short term lodging by establishing NBMC Chapter 5.95 in 1992, which includes permitting requirements, standard operating conditions, and penalties. At that time, the short term rental of residential units was allowed in all zoning districts. As they proliferated over the years, Chapter 5.95 was amended in 2004 to prohibit the establishment of short-term lodging in single-family zones. In 2010, the City’s Planning and Zoning Code (Title 20) was comprehensively updated. As part of this update, short term lodging was added to the allowable uses table (Table 2-1) for residential zones and to reinforce the prohibition of STLs in the single-family zones and allowance in the two-family and multi-family zones. A reference to Chapter 5.95 for implementation was also added. Unfortunately, short term lodging was inadvertently not listed in allowable uses table for mixed-use zones (Tables 2-8 and 2-9). Pursuant to NBMC Section 20.12.020(E)(1), uses not listed in a zoning district (e.g. mixed-use zones) but which are listed in another zoning district (e.g. residential zones) are considered prohibited. In 2017, the California Coastal Commission certified the City’s Local Coastal Program Implementation Plan (Title 21), which incorporated similar allowable uses tables as Title 20 and thereby incorporating the same prohibition of STLs in mixed-use zoning districts. 5 Municipal Code and LCP Amendments Related to Short Term Lodging (PA2003-0116) Planning Commission, October 19, 2023 Page 5 The proposed code revisions implement the City Council’s direction and correct the inadvertent omission from 2010 that excluded short-term rentals from mixed-use areas. Affected Locations The MU-W2 zoning district primarily encompasses Lido Village and McFadden Square, but it also covers the Cannery Village waterfront and mixed-use commercial areas on Balboa Island (Agate and Marine Avenues), and a single property located at 2890 Bay Shore Drive. The MU-CV/15th Street zoning district encompasses the Cannery Village area and the mixed-use areas along the west side of 15th Street on the Balboa Peninsula. These two zoning districts are entirely within the coastal zone area of the City. See Attachment No. PC 4 for map of affected zoning districts. Current Status of Short Term Lodging Permits in Mixed-Uses Zones Given that STLs were previously allowed in mixed-use zones prior to 2010, there are currently a total of 24 nonconforming STL permits that remain active throughout the various mixed-use zoning districts. Of those 24 permits, 20 permits are located within the subject MU-W2 and MU-CV/15th St. zones and would remain legal nonconforming unless the proposed eligibility criteria are satisfied. The remaining four permits located within MU-V zoning district, and they too would remain legal nonconforming. As proposed, all 24 legal nonconforming short term lodging permits would not count against the 75-permit limit for the MU-W2 and MU-CV/15th Street zoning districts. Appropriateness of STLs in Mixed-Use Zones A common complaint from residents regarding short term lodging is that often results in the commercialization of residential neighborhoods, and it can create land use conflicts between established residents and STL users. Residents experience increased exposure to noise, trash, and parking impacts. However, mixed-use zones offer an ideal location for short term rentals because these zones apply to predominately mixed-use properties with general commercial and visitor-serving commercial, and residential dwelling units on the upper floors. Additionally, mixed-use zones are generally located in areas that do not impact or burden residential neighborhoods and the two zones that would be affected are located proximate to the beach and harbor, destinations for visitors. The attached revisions were carefully drafted to allow a very limited number of short term rentals in the two mixed use areas, MU-W2 and MU-CV/15th Street. The added requirements that will accompany each short-term rental permit issued in a mixed-use area will ensure that residential neighborhoods and the community as a whole benefit from, and are not impacted by, the issuance of the new short-term rental permits. 6 Municipal Code and LCP Amendments Related to Short Term Lodging (PA2003-0116) Planning Commission, October 19, 2023 Page 6 General Plan Consistency The proposed amendments would serve to implement the following goals and policies of the General Plan: Land Use Element Policy LU 2.6, which states, “Visitor Serving Uses Provide uses that serve visitors to Newport Beach’s ocean, harbor, open spaces, and other recreational assets, while integrating them to protect neighborhoods and residents.” The amendment would allow short term lodging within the MU-W2 and MU-CV/15th St. zoning districts, subject to specific regulations that would require the operation of short-term lodging would be subject to a permit issued by the City, managed by professional management, and not impact parking in the neighborhood. The amendment would also maintain the existing Citywide maximum cap of 1,550 permits by establishing a maximum cap of 1,475 permit with residential coastal zoning districts and a maximum cap of 75 permit within the MU-W2 and MU-CV/15th St. coastal zoning districts. This would maintain the existing allowance for this type of visitor accommodations in the City without altering existing provisions and regulations on short term lodging previously adopted to protect residential neighborhoods. Land Use Element Goal LU 4, which states, “Management of growth and change to protect and enhance the livability of neighborhoods and achieve distinct and economically vital business and employment districts, which are correlated with supporting infrastructure and public services and sustain Newport Beach’s natural setting.” In specific mixed-use zones, larger scale (twenty (20) or more units) would be permitted to operate. This provides additional opportunities for properties in the mixed- use zones to achieve and maintain economic viability and avoids new impacts on residential neighborhoods. Local Coastal Program Consistency The proposed Title 21 amendment serves to implement Coastal Land Use Plan (CLUP) Table 2.1.1-1 (Land Use Plan Categories) of the LCP, which establishes the type, density, and intensity of land uses within the coastal zone. The amendment would allow the operation of short term lodging within existing dwelling unit in certain mixed-use coastal zoning districts. This is consistent with allowing visitor serving accommodations in the mixed-use zones while maintaining the adopted regulations to protect residential zones. CLUP Policy 2.3.3-6 authorizes the short term rental of dwelling units as a means of providing lower-cost overnight visitor accommodations. To allow for the small expansion of short term lodging in the more appropriate mixed use coastal zoning districts, but maintain and protect existing maximum cap of 1,550 permits, this amendment establishes two separate caps: 1) a maximum cap of 1,475 permit with residential coastal zoning districts; and, 2) a maximum cap of 75 permit within the MU-W2 and MU-CV/15th Street coastal zoning districts. 7 Municipal Code and LCP Amendments Related to Short Term Lodging (PA2003-0116) Planning Commission, October 19, 2023 Page 7 Local Coastal Plan Amendment Process Any amendment to the LCP, including Title 21, must be reviewed and approved by the City Council, with a recommendation from the Planning Commission, prior to submitting the amendment request to the California Coastal Commission (Coastal Commission). The Coastal Commission is the final decision-making authority on amendments to the certified LCP; however, the City retains the ability to reject an LCP amendment in its entirety if the Coastal Commission includes suggested modifications. Upon approval of the proposed LCP Amendment by the Coastal Commission, staff will return to the City Council with an ordinance adopting the Title 21 amendment. Alternatives The Planning Commission may recommend revisions to the draft amendments. Environmental Review This action 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, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Public Notice 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 October 13, 2023, to all persons and agencies on the Notice of Availability mailing list. In addition, notice of this amendment was published in the Daily Pilot as an eighth-page advertisement, consistent with the provisions of the Municipal Code and State law. The item also appeared on the agenda for this meeting, which was posted at City Hall and on the City website. Prepared by: Submitted by: 8 Municipal Code and LCP Amendments Related to Short Term Lodging (PA2003-0116) Planning Commission, October 19, 2023 Page 8 ATTACHMENTS PC 1 Draft Resolution – Chapter 5.95 and Title 20 Code Amendment PC 2 Draft Resolution –Title 21 LCP Amendment PC 3 June 22, 2023, Planning Commission Meeting Minutes PC 4 Location Map of MU-W2 and MU-CV/15th St Zoning Districts PC 5 Statistical Area Map PC 6 Redline Strikeout of Proposed Code Revisions 01/18/23 9 INTENTIONALLY BLANK PAGE10 Attachment No. PC 1 Draft Resolution Chapter 5.95 and Title 20 Code Amendment 11 INTENTIONALLY BLANK PAGE12 RESOLUTION NO. PC2023-037 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA RECOMMENDING CITY COUNCIL ADOPTION OF A CODE AMENDMENT TO CHAPTER 5.95 (SHORT TERM LODGING PERMIT) AND TITLE 20 (PLANNING AND ZONING) OF THE NEWPORT BEACH MUNICIPAL CODE RELATED TO SHORT TERM LODGING (PA2023-0116) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. 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. 2. Section 20.66.020 of the Newport Beach Municipal Code (“NBMC”) provides that the Planning Commission or the City Council of the City of Newport Beach (“City”) may initiate an amendment to Title 20 (Planning and Zoning) of the NBMC (“Title 20”). 3. City Council Policy K-1 (General Plan and Local Coastal Program) of the NBMC requires amendments to the City of Newport Beach certified Local Coastal Program codified in Title 21 (Local Coastal Program Implementation Plan) (“Title 21”) to be initiated by the City Council. 4. On May 23, 2023, the City Council directed the Planning Commission to identify opportunities to modify Titles 20 and 21 of the NBMC, effectively initiating amendments, to facilitate new visitor serving accommodation opportunities within the Mixed-Use Water (MU-W2) and (MU-CV/15th St.) Mixed-Use Cannery Village and 15th Street zoning districts (“Code Amendment”). 5. On June 22, 2023, the Planning Commission discussed the potential to amend Titles 20 and 21 to facilitate new visitor serving accommodations. 6. A public hearing was held on October 19, 2023, 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 California Government Code Section 54950 et seq. (“Ralph M. Brown Act”) and Chapter 20.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing. 13 Planning Commission Resolution No. PC2023-037 Page 2 of 13 7. The City desires to update Chapter 5.95 (Short Term Lodging Permit), Section 20.22.010 (Purposes of Mixed-Use Zoning Districts), and Section 20.22.020 (Mixed-Use Zoning Districts and Land Uses and Permit Requirements) of the NBMC. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. The Code Amendment is exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to Section 15060(c)(2) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that a project is not further review under CEQA if the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment. The Code Amendment would allow existing residential dwelling units in mixed-use zones to be used for short term lodging. The Code Amendment would not authorize new development that would result in a physical change in the environment. SECTION 3. FINDINGS. 1. An amendment to Chapter 5.95 (Short Term Lodging Permit) and Title 20 (Planning and Zoning) of the NBMC is a legislative act. There are no required findings for either approval or denial of such amendments. Notwithstanding the foregoing, the Code Amendment is consistent with the following goals and policies of the City’s General Plan: Land Use Element Policy LU 2.6 (Visitor Serving Uses), which states, “Provide uses that serve visitors to Newport Beach’s ocean, harbor, open spaces, and other recreational assets, while integrating them to protect neighborhoods and residents.” The Code Amendment would allocate and allow 75 short term lodging permits within the MU-W2 and MU-CV/15th St. zones, both of which are located in the Coastal Zone, subject to specific regulations that would require the operation of short-term lodging would be subject to a permit issued by the City, managed by professional management, and not impact parking in the neighborhood. The Code Amendment would also maintain the existing Citywide maximum cap of 1,550 permits by establishing a maximum cap of 1,475 permit with residential coastal zoning districts and a maximum cap of 75 permit within the MU-W2 and MU-CV/15th St. coastal zoning districts. This would maintain the existing allowance for this type of visitor accommodations in the additional visitor accommodations in the City without altering existing provisions and regulations on short term lodging previously adopted to protect residential neighborhoods. Land Use Element Goal LU 4 states, “Management of growth and change to protect and enhance the livability of neighborhoods and achieve distinct and economically vital business and employment districts, which are correlated with supporting infrastructure and public services and sustain Newport Beach’s natural setting.” In specific mixed use zones larger scale (twenty (20) or more units) would be permitted to operate. This provides additional opportunities for properties in the mixed-use zones to achieve and maintain economic viability and avoids new impacts on residential neighborhoods. 2. A Local Coastal Program Amendment is also underway to ensure the regulations within the Coastal Zone are consistent with the Code Amendment. 14 Planning Commission Resolution No. PC2023-037 Page 3 of 13 3. The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Planning Commission of the City of Newport Beach hereby finds Code Amendment PA2023-0116 is exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to Section 15060(c)(2) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that a project is not further review under CEQA if “[t]he activity will not result in a direct or reasonably foreseeable indirect physical change in the environment”. The Code Amendment would allow existing residential dwelling units in mixed-use zones to be used as short term lodging. The Code Amendment would not authorize new development that would result in a physical change in the environment. 2. The Planning Commission hereby recommends to the City Council review the Code Amendment PA2023-0116 as set forth in Exhibit “A,” which is attached hereto and incorporated herein by reference. PASSED, APPROVED, AND ADOPTED THIS 19TH DAY OF OCTOBER 2023. AYES: NOES: ABSTAIN: ABSENT: BY:___________________________ Curtis Ellmore, Chair BY:____________________________ Tristan Harris, Secretary 15 Planning Commission Resolution No. PC2023-037 Page 4 of 13 EXHIBIT “A” CODE AMENDMENT NO. PA2023-0116 Section 1: Subsection (B) of Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code is hereby amended to read as follows: B. Over a thousand dwelling units within residential zones near the City’s beaches and harbor are rented for thirty (30) consecutive days or less with the vast majority of those rentals occurring during the summer when the demand for parking and City services is the greatest. Section 2: Subsection (B) of Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code is hereby amended to read as follows: C. Many of the occupants of short term lodging units are permanent residents of areas distant from Newport Beach and the City has no effective way to prevent occupants from continuing to violate provisions of this Code and the Cal. Pen. 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. Section 3: Subsection (L) of Section 5.95.005 (Purpose and Findings) 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 and mixed-use areas as well as to prevent and address the impacts on residential neighborhoods posed by short term lodgings. Section 4: Subsection (M) is hereby added to Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code to read as follows: M. With appropriate restrictions, certain mixed-use zones present an opportunity to accommodate tourists while protecting the City's residential zones. Section 5: Section 5.95.010 (Definitions) of the Newport Beach Municipal Code is amended to read as follows: 5.95.010 Definitions. For the purpose of this chapter, the following definitions shall apply: A. “Accessory dwelling unit” shall have the same definition as set forth in Chapter 20.70. B. “Agent” shall mean any person who is authorized in writing by the owner to represent and act for an owner. C. “Booking transaction” shall mean any reservation or payment service provided by a person who facilitates a short term lodging rental transaction between a transient user and owner for the use of a unit for a period of thirty (30) consecutive days or less. D. “Gross floor area” shall mean the area of the lodging unit that includes the surrounding exterior walls and any interior finished portion of a structure that is accessible and that measures more than six 16 Planning Commission Resolution No. PC2023-037 Page 5 of 13 feet from finished floor to ceiling. Stairwells and elevator shafts above the first level shall be excluded from the calculation of gross floor area. E. “Home-sharing” shall mean an activity whereby the owner hosts a transient user in the owner’s lodging unit, for compensation, for periods of less than thirty (30) consecutive calendar days, during which time the owner of the unit lives on site, in the unit, throughout the transient user’s stay and the owner, the transient user and any other occupants live together in the same unit as a single housekeeping unit. F. “Hosting platform” shall mean a person, other than an owner or agent, who participates in the short term lodging business by facilitating a booking transaction using any medium of facilitation. G. “Lodging unit” or “unit” shall mean a “dwelling unit” as that term is defined in Chapter 20.70. An accessory dwelling unit shall not be considered a lodging unit or unit for purposes of this chapter. H. "Multi-use area" shall mean those areas of the City designated by Title 20 and Title 21 as Mixed- Use Water (MU-W2) and Mixed-Use Cannery Village and 15th Street (MU- CV/15th St.). I. “Owner” shall mean the person(s) that hold(s) legal and/or equitable title to the lodging unit. K. “Residential district” shall mean those areas of the City so designated by Title 20 as well as any other area in the City designated for a residential use as part of a planned community development plan, specific area plan or planned residential district. J. “Short term” shall mean a lodging unit that is rented or leased as a single housekeeping unit for a period of (30) consecutive days or less. This also includes home-sharing. L. “Short term lodging unit registry” shall mean the published registry maintained by the City that sets forth a list of all owners and the address of all units that have a valid short term lodging permit and business license with the City, a copy of which is available, without charge, to any person who requests a copy and which shall be accessible on the City’s website. M. “Single housekeeping unit” shall have the same definition as set forth in Chapter 20.70. N. “Transient” or “transient user” shall mean any person or persons who, for any period of thirty (30) consecutive days or less either at his or her own expense, or at the expense of another, obtains lodging in a lodging unit or the use of any lodging space in any unit, for which lodging or use of lodging space a charge is made. Section 6: Section 5.95.015 (Residential Properties Eligible for Short Term Lodging Permits) of the Newport Beach Municipal Code is amended to read as follows: 5.95.015 Properties Eligible for Short Term Lodging Permits. Only properties in a residential district or multi-use area that are authorized under Titles 20 and 21 and this chapter shall be eligible for a short term lodging permit. Subsequent to June 1, 2004, no annual permit shall be issued to or renewed for any dwelling unit on any parcel zoned for “Single-Unit Residential (R-1)” or that is designated for a single-family residential use as part of a planned community development plan, specific area plan or planned residential district, unless a permit has previously been issued for that lodging unit and the permit was not subsequently revoked. 17 Planning Commission Resolution No. PC2023-037 Page 6 of 13 Section 7: Section 5.95.020 (Permit Required) of the Newport Beach Municipal Code is amended to read as follows: 5.95.020 Permit Required. No owner of a lodging unit shall advertise for rent or rent a lodging unit located within a residential district or multi-use area for a short term without a valid short term lodging permit for that unit issued pursuant to this chapter. Section 8: Section 5.95.030 (Application for Permit) of the Newport Beach Municipal Code is 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: 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. Acknowledgment 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) 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) days of the date the permit was closed by the Finance Director, or the short term lodging permit shall be deemed abandoned. 18 Planning Commission Resolution No. PC2023-037 Page 7 of 13 D. An application for the reinstatement of a previously suspended short term lodging permit shall be filed within thirty (30) 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) 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) of this section. Section 9: Section 5.95.035 (Denial of Permits) of the Newport Beach Municipal Code is 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; the short term lodging permit for the same unit and issued to the same owner has been revoked, or the short term lodging permit is not eligible for reinstatement. Section 10: Section 5.95.042 (Maximum Number of Permits) of the Newport Beach Municipal Code is amended to read as follows: 5.95.042 Maximum Number of Permits. A. Except as provided in subsection (B), the maximum number of short term lodging permits in a residential district shall be limited to one thousand four hundred seventy-five (1,475) permits at any time. If there are more than one thousand four hundred seventy-five (1,475) valid permits in residential districts as of the effective date of the ordinance, 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 any person on the waiting list, as described in subsection (F) of this section, until the total number of residential district permits does not exceed one thousand four hundred seventy-five (1,475). To avoid wholesale conversion of existing and new housing complexes into short term lodgings within the residential district, multi-unit developments with five (5) or more units may permit a maximum of twenty (20) percent of the total number of units to be short term lodgings (rounded down to the nearest whole number). B. The maximum number of short term lodging permits in the multi-use area shall be limited to seventy-five (75) permits. No new permit shall be issued to any person on the waiting list, as described in subsection (F) of this section, until the total number of multi-use area permits less than seventy-five (75). Notwithstanding the foregoing, the seventy-five (75) permit maximum shall not apply to a short term lodging unit that was legally established as of INSERT DATE on a lot within a Mixed-Use Coastal Zoning District provided the owner maintains a valid short term lodging permit that is not subsequently revoked or abandoned. C. For purposes of calculating the maximum number of permits available described in subsection (A) or (B) of this section, a permit shall be deemed valid and unavailable until it is abandoned in 19 Planning Commission Resolution No. PC2023-037 Page 8 of 13 accordance with Sections 5.95.030(B) through (F), and/or Section 5.95.043(B) or, if the short term lodging permit has been revoked. D. 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 Sections 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 (F) of this section. E. An owner seeking to transfer a valid short term lodging permit that files an application within the time frames 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 (F) of this section. F. 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 as provided for in Section 1.08.080. The notice shall specify that applications will be accepted for ten (10) days after the date of the notice, and that failure to apply within the ten (10) day period shall result in removal of the person or persons receiving notice from 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. Section 11: Subsections A(19) through A(22) of Section 5.95.045 (Conditions) of the Newport Beach Municipal Code is amended to read as follows: 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 days after the City serves the owner with a request for inspection in accordance with Section 1.08.080. If, based on the inspection, it is determined that the information submitted to the City in accordance with Section 5.95.030 was false, in addition to any other remedy set forth in this chapter, the owner agrees that the owner shall be liable for the cost of conducting the inspection. 20. The owner shall provide the City with a copy of any written rental agreement(s) and the good neighbor policy, within seven 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 nor 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 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 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. 20 Planning Commission Resolution No. PC2023-037 Page 9 of 13 Section 12: Section 5.95.055 (Issuance of Administrative Subpoenas) of the Newport Beach Municipal Code is amended to read as follows: 5.95.055 Issuance of Administrative Subpoenas. The City Manager shall have the authority to issue and serve administrative subpoenas to the owner, agent or hosting platform, as necessary, to obtain specific information regarding short term rental listings located in the City, including but not limited to the names of the persons responsible for each such listing, the address of each such listing, the length of stay for each such listing and the price paid for each stay, to determine whether the short term rental listing complies with this chapter. Any subpoena issued pursuant to this section shall not require the production of information sooner than thirty (30) days from the date of service. A person that has been served with an administrative subpoena may seek judicial review during that thirty (30) day period. Failure to respond to an administrative subpoena in accordance with the terms set forth therein shall be punishable in accordance with Section 5.95.060 and the City may file a judicial action to compel compliance with the subpoena. Section 13: Section 5.95.060 (Violations, Penalties and Enforcement) of the Newport Beach Municipal Code is deleted in its entirety. Section 14: Subsection A(3) of Section 5.95.065 (Suspensions and Revocations) of the Newport Beach Municipal Code is amended to read as follows: 3. If a lodging unit that is subject to a short term lodging permit has been the location of two or more loud or unruly gatherings, as defined in Chapter 10.66, while the lodging unit was occupied on a short term basis, within any twenty-four (24) month period, the permit may be suspended for a period of one year or revoked in accordance with subsection (B) of this section. A loud or unruly gathering that occurred prior to the passage of fourteen (14) days from the mailing of notice to the owner in compliance with Section 10.66.030(D) shall not be included within the calculation of the two or more loud or unruly gatherings required to revoke a short term lodging permit. Section 15: Subsection (B) of Section 5.95.065 (Suspensions and Revocations) of the Newport Beach Municipal Code is amended to read as follows: B. Permits shall be suspended or revoked, only in the manner provided in this section. 1. The Finance Director shall investigate whenever he or she has reason to believe that an owner has submitted an application that contains false information or committed a violation of a permit condition, this Code, state or federal law related to a permitted unit. Such investigation may include, but is not limited to, on-site property inspections. Should the investigation reveal substantial evidence to support a finding that warrants a suspension or revocation of the short term lodging permit, the Finance Director shall issue written notice of intention to suspend or revoke the short term lodging permit. The written notice shall be served on the owner in accordance with Section 1.08.080, and shall specify the facts which, in the opinion of the Finance Director constitute substantial evidence to establish grounds for imposition of the suspension and/or revocation, and specify the proposed time the short term lodging permit shall be suspended and/or that the short term lodging permit shall be revoked within thirty (30) days from the date the notice is given, unless the owner files with the Finance Director, before the suspension and/or revocation becomes effective, a request for hearing before a hearing officer, who shall be retained by the City, and pays the fee for the hearing established by resolution of the City Council. 2. If the owner requests a hearing and pays the hearing fee, established by resolution of the City Council, within the time specified in subsection (B)(1) of this section, the Finance Director shall serve written notice on the owner, pursuant to Section 1.08.080, setting forth the date, time and 21 Planning Commission Resolution No. PC2023-037 Page 10 of 13 place for the hearing. The hearing shall be scheduled not less than fifteen (15) days, nor more than sixty (60) days, from the date on which notice of the hearing is served by the Finance Director. The hearing shall be conducted according to the rules normally applicable to administrative hearings. At the hearing, the hearing officer will preside over the hearing, take evidence and then submit proposed findings and recommendations to the City Manager. The City Manager shall suspend or revoke the short term lodging permit only upon a finding that a violation has been proven by a preponderance of the evidence, and that the suspension or revocation is consistent with the provisions of this section. The City Manager shall render a decision within thirty (30) days of the hearing and the decision shall be final as to the City but subject to judicial review pursuant to Cal. Code Civ. Proc. Section 1094.5. Section 16: Section 5.95.065 (License and Permit Closure) of the Newport Beach Municipal Code is amended to read as follows: 5.95.080 License and Permit Closure. A. Any owner that has ceased operating a short term lodging unit shall inform the Finance Director in writing of the date of the last rental, and having done such, the short term lodging permit shall be closed. The City will send a final transient occupancy tax and visitor service fee bill, which will be due and payable thirty (30) days from the date of the invoice. B. The Finance Director shall close any permit that has no short term lodging activity for a period of two (2) consecutive annual reporting periods as evidenced by the owner and/or agent remitting zero dollars ($0.00) on the required transient occupancy tax and visitor service fee forms or the owner/agent failing to return these forms. After any permit closure pursuant to this subsection, the owner may reapply one (1) time for reinstatement of the short term lodging permit which shall be processed in accordance with Section 5.95.030. Any subsequent closure of the short term lodging permit pursuant to this subsection shall not be eligible for reinstatement. Section 17: Rows entitled “Visitor Accommodations, Residential” and “Short Term Lodging” are hereby added to the “Residential Uses” section of Table 2-8 (Allowed Uses) of Section 20.22.020 (Mixed-Use Zoning Districts Land Uses and Permit Requirements) of the Newport Beach Municipal Code as follows: TABLE 2-8 ALLOWED USES AND PERMIT REQUIREMENTS Mixed-Use Zoning Districts Permit Requirements P Permitted by Right CUP Conditional Use Permit (Section 20.52.020) MUP Minor Use Permit (Section 20.52.020) LTP Limited Term Permit (Section 20.52.040) — Not Allowed * Land Use MU-V MU-MM (6) MU-DW MU-CV/15th St. (7) Specific Use Regulations See Part 7 of this title for land use definitions. See Chapter 20.12 for unlisted uses. Residential Uses 22 Planning Commission Resolution No. PC2023-037 Page 11 of 13 TABLE 2-8 ALLOWED USES AND PERMIT REQUIREMENTS Mixed-Use Zoning Districts Permit Requirements P Permitted by Right CUP Conditional Use Permit (Section 20.52.020) MUP Minor Use Permit (Section 20.52.020) LTP Limited Term Permit (Section 20.52.040) — Not Allowed * Land Use MU-V MU-MM (6) MU-DW MU-CV/15th St. (7) Specific Use Regulations See Part 7 of this title for land use definitions. See Chapter 20.12 for unlisted uses. Accessory Dwelling Units and Junior Accessory Dwelling Units P P P P Section 20.48.200 Single-Unit Dwellings Located on 1st floor — — — P (3) Section 20.48.130 Located above 1st floor P (1) — — P (3) Section 20.48.130 Multi-Unit Dwellings Located on 1st floor — P (1)(2) P (1) P (3) Section 20.48.130 Located above 1st floor P (1) P (1)(2) P (1) P (3) Section 20.48.130 Two-Unit Dwellings Located on 1st floor — — — P (3) Section 20.48.130 Located above 1st floor P (1) — — P (3) Section 20.48.130 Home Occupations P P (1) P P Section 20.48.130 Live-Work Units P P (1)(2) P P (3) Visitor Accommodations, Residential Short Term Lodging — — — P Chapter 5.95 Section 18: Rows entitled “Visitor Accommodations, Residential” and “Short Term Lodging” are hereby added to the “Residential Uses” section of Table 2-9 (Allowed Uses) of Section 20.22.020 (Mixed-Use Zoning Districts Land Uses and Permit Requirements) of the Newport Beach Municipal Code as follows: 23 Planning Commission Resolution No. PC2023-037 Page 12 of 13 TABLE 2-9 ALLOWED USES AND PERMIT REQUIREMENTS Mixed-Use Zoning Districts Permit Requirements P Permitted by Right CUP Conditional Use Permit (Section 20.52.020) MUP Minor Use Permit (Section 20.52.020) LTP Limited Term Permit (Section 20.52.040) — Not allowed * Land Use MU-W1 (5)(6) MU-W2 Specific Use Regulations See Part 7 of this title for land use definitions. See Chapter 20.12 for unlisted uses. Residential Uses Accessory Dwelling Units and Junior Accessory Dwelling Units P P Section 20.48.200 Single-Unit Dwellings Located on 1st floor — — Located above 1st floor P (1) P (2) Section 20.48.130 Multi-Unit Dwellings Located on 1st floor — — Located above 1st floor P (1) P (2) Section 20.48.130 Two-Unit Dwellings Located on 1st floor — — Located above 1st floor P (1) P (2) Home Occupations P P (2) Section 20.48.110 Visitor Accommodations, Residential Short Term Lodging — P Chapter 5.95 Section 19: Subsection A(3)(f) of Section 20.38.060 (Nonconforming Parking) of the Newport Beach Municipal Code is amended to read as follows: f. Outside the coastal zone, dwellings within the residential development shall not be rented for periods of thirty (30) days or less. Refer to subsection (A)(4)(f) of this section for short-term lodging allowances for developments within the coastal zone; and Section 20: Subsection B(4)(h) of Section 20.48.205 (SB 9 Housing Developments and Urban Lot Splits in Single-Unit Residential Zoning Districts) of the Newport Beach Municipal Code is amended to read as follows: h. Short-Term Lodging. Any dwelling unit permitted pursuant to an SB 9 housing development or urban lot split shall not be rented for periods of thirty (30) days or less. 24 Planning Commission Resolution No. PC2023-037 Page 13 of 13 Section 21: The definition of “Bed and breakfast inn” of Section 20.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is amended to read as follows: 1. “Bed and breakfast inn” means a dwelling unit that offers guest rooms or suites for a fee for thirty (30) days or less, with incidental eating and drinking service provided from a single kitchen for guests only. Section 22: The definition of “Short-term lodging” of Section 20.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is amended to read as follows: 5. “Short-term lodging” means a dwelling unit that is rented or leased as a single housekeeping unit (see “Single housekeeping unit”) for a period of less (30) days or less, subject to the requirements of Chapter 5.95 (Short Term Lodging Permits) and any additional standards required by the City Manager. 25 INTENTIONALLY BLANK PAGE26 Attachment No. PC 2 Draft Resolution Title 21 LCP Amendment 27 INTENTIONALLY BLANK PAGE28 RESOLUTION NO. PC2023-038 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA RECOMMENDING CITY COUNCIL AUTHORIZE SUBMITTAL OF A LOCAL COASTAL PLAN AMENDMENT TO THE CALIFORNIA COASTAL COMMISSION REQUESTING TO AMEND TITLE 21 (LOCAL COASTAL PROGRAM IMPLEMENTATION PLAN) OF THE NEWPORT BEACH MUNICIPAL CODE RELATED TO SHORT TERM LODGING (PA2023-0116) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. 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. 2. In 2005, the City adopted the City of Newport Beach Local Coastal Program Coastal Land Use Plan as amended from time to time. 3. The California Coastal Commission effectively certified the City’s Local Coastal Program Implementation Plan on January 13, 2017, and the City added Title 21 to the NBMC whereby the City assumed coastal development permit-issuing authority on January 30, 2017. 4. On May 23, 2023, the City Council directed the Planning Commission to identify opportunities to modify Titles 20 and 21 of the NBMC, effectively initiating amendments, to facilitate new visitor serving accommodation opportunities within the Mixed-Use Water (MU-W2) and Mixed-Use Cannery Village and 15th Street (MU-CV/15th St.) zoning districts (“LCP Amendment”). 5. On June 22, 2023, the Planning Commission discussed the potential to amend Titles 20 and 21 to facilitate new visitor serving accommodations. 6. Pursuant to Section 13515 (Public Participation and Agency Coordination Procedures) of the California Code of Regulations Title 14, Division 5.5, Chapter 8, Subchapter 2, Article 5 (Public Participation) (“Section 13515”), drafts of LCP Amendment (PA2023-0116) were made available and a Notice of Availability was distributed at least six weeks prior to the anticipated final action date. 7. A public hearing was held on October 19, 2023, 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 California Government Code Section 54950 et seq. (“Ralph M. Brown Act”) and Chapter 21.62 (Public Hearings) of the NBMC. 29 Planning Commission Resolution No. PC2023-038 Page 2 of 10 Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. The LCP Amendment is exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to Section 15060(c)(2) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that a project is not further review under CEQA if the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment. The Code Amendment would allow existing residential dwelling units in mixed-use zones to be used for short term lodging. The Code Amendment would not authorize new development that would result in a physical change in the environment. SECTION 3. FINDINGS. 1. The LCP Amendment (PA2023-0116) is consistent with the City’s General Plan. It would serve to implement the following goals and policies of the General Plan: Land Use Element Policy LU 2.6 (Visitor Serving Uses), which states, “Provide uses that serve visitors to Newport Beach’s ocean, harbor, open spaces, and other recreational assets, while integrating them to protect neighborhoods and residents.” The proposed amendment would allocate and allow 75 short term lodging permits within the MU-W2 and MU-CV/15th St. coastal zoning districts, subject to specific regulations that would require the operation of short- term lodging would be subject to a permit issued by the City, managed by professional management, and not impact parking in the neighborhood. The amendment would also maintain the existing Citywide maximum cap of 1,550 permits by establishing a maximum cap of 1,475 permit with residential coastal zoning districts and a maximum cap of 75 permit within the MU-W2 and MU-CV/15th St. coastal zoning districts. This would maintain the existing allowance for this type of visitor accommodations in the City without altering existing provisions and regulations on short term lodging previously adopted to protect residential neighborhoods. Land Use Element Goal LU 4, which states, “Management of growth and change to protect and enhance the livability of neighborhoods and achieve distinct and economically vital business and employment districts, which are correlated with supporting infrastructure and public services and sustain Newport Beach’s natural setting.” In specific mixed-use zones larger scale (twenty (20) or more units) would be permitted to operate. This provides additional opportunities for properties in the mixed-use zones to achieve and maintain economic viability and minimizes impacts on residential neighborhoods. 2. The LCP Amendment serves to implement Coastal Land Use Plan (CLUP) Table 2.1.1-1 (Land Use Plan Categories) of the LCP, which establishes the type, density, and intensity of land uses within the coastal zone. The amendment would allow the operation of short- term lodging in certain mixed-use coastal zoning districts where the commercialization of existing residential dwellings as visitor accommodations is more appropriate. This is consistent with allowing visitor serving accommodations in the mixed-use zones while maintaining the adopted regulations to protect residential zones. 30 Planning Commission Resolution No. PC2023-038 Page 3 of 10 3. CLUP Policy 2.3.3-6 authorizes the short-term rental of dwelling units as a means of providing lower-cost overnight visitor accommodations. The City currently limits the maximum number of short-term rentals at a cap of 1,550 permits to prevent adverse impacts to residential areas and preserve housing stock within the coastal zone. To allow for the small expansion of short term lodging in the more appropriate mixed use coastal zoning districts, but maintain and protect existing maximum cap of 1,550 permits, this amendment establishes two separate caps: 1) a maximum cap of 1,475 permit with residential coastal zoning districts; and, 2) a maximum cap of 75 permit within the MU-W2 and MU-CV/15th St. coastal zoning districts. 4. The LCP Amendment (PA2023-0116) shall not become effective until approval by the California Coastal Commission and adoption, including any modifications suggested by the California Coastal Commission, by resolution and/or ordinance of the City Council of the City of Newport Beach. 5. The LCP, including the LCP Amendment (PA2023-0116), will be carried out fully in conformity with the California Coastal Act. 6. The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. SECTION 4. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Planning Commission of the City of Newport Beach hereby finds Local Costal Program Amendment PA2023-0116 is exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to Section 15060(c)(2) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, which states that a project is not further review under CEQA if “[t]he activity will not result in a direct or reasonably foreseeable indirect physical change in the environment.” The Code Amendment would allow existing residential dwelling units in mixed use zones to be used as short-term lodging. The Code Amendment would not authorize new development that would result in a physical change in the environment. 2. The Planning Commission hereby recommends the City Council authorize staff to submit the Local Coastal Program Amendment PA2023-0116, as set forth in Exhibit “A,” which is attached hereto and incorporated herein by reference, to the California Coastal Commission. PASSED, APPROVED, AND ADOPTED THIS 19TH DAY OF OCTOBER 2023. AYES: NOES: 31 Planning Commission Resolution No. PC2023-038 Page 4 of 10 ABSTAIN: ABSENT: BY:___________________________ Curtis Ellmore, Chair BY:____________________________ Tristan Harris, Secretary 32 Planning Commission Resolution No. PC2023-038 Page 5 of 10 EXHIBIT “A” LOCAL COSTAL PLAN AMENDMENT NO. PA2023-0116 Section 1: Rows entitled “Visitor Accommodations, Residential” and “Short Term Lodging” are hereby added to the “Residential Uses” section of Table 21.22-1 (Allowed Uses) of Section 21.22.020 of the Newport Beach Municipal Code as follows: TABLE 21.22-1 ALLOWED USES Mixed-Use Zoning Districts A Allowed — Not Allowed * Land Use MU-V (6) MU-MM (4) MU-CV/15th St. (5)(6) Specific Use Regulations See Part 7 of this Implementation Plan for land use definitions. See Chapter 21.12 for unlisted uses. Residential Uses Single-Unit Dwellings Located on 1st floor — — A (3) Located above 1st floor A (1) — A (3) Multi-Unit Dwellings Located on 1st floor — A (1)(2) A (3) Located above 1st floor A (1) A (1)(2) A (3) Two-Unit Dwellings Located on 1st floor — — A (3) Located above 1st floor A (1) — A (3) Home Occupations A A (1) A Live-Work Units A A (1)(2) A (3) Accessory Dwelling Units and Junior Accessory Dwelling Units A A A Section 21.48.200 Visitor Accommodations, Residential Short-Term Lodging — — A Chapter 5.95 and Section 21.48.115 Section 2: Rows entitled “Visitor Accommodations, Residential” and “Short Term Lodging” are hereby added to the “Residential Uses” section of Table 21.22-2 (Allowed Uses) of Section 21.22.020 of the Newport Beach Municipal Code as follows: 33 Planning Commission Resolution No. PC2023-038 Page 6 of 10 TABLE 21.22-2 ALLOWED USES Mixed-Use Coastal Zoning Districts A — Allowed Not Allowed * Land Use MU-W1 (3) MU-W2 (5) Specific Use Regulations See Part 7 of this Implementation Plan for land use definitions. See Chapter 21.12 for unlisted uses. Residential Uses Single-Unit Dwellings Located on 1st floor — — Located above 1st floor A (1) A (2) Multi-Unit Dwellings Located on 1st floor — — Located above 1st floor A (1) A (2) Two-Unit Dwellings Located on 1st floor — — Located above 1st floor A (1) A (2) Home Occupations A A (2) Accessory Dwelling Units and Junior Accessory Dwelling Units A A Section 21.48.200 Visitor Accommodations, Residential Short-Term Lodging — A Chapter 5.95 and Section 21.48.115 Section 3: Section 21.48.115 (Short-Term Lodging) of the Newport Beach Municipal Code is amended in its entirety to read as follows: 21.48.115 Short-Term Lodging. A. Purpose. This section provides standards for the operation of short-term lodging units to prevent overburdening City services and adverse impacts on residential neighborhoods, multi- use areas, and on coastal access and resources. B. Permits within a Residential District. 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. 34 Planning Commission Resolution No. PC2023-038 Page 7 of 10 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 four hundred seventy-five (1,475) permits within a residential district at any time. If there are more than one thousand four hundred seventy-five (1,475) valid permits that have been issued within a residential district as of the effective date of Ordinance No. 2023-___, no new permit shall be issued to any person on the waiting list, as described in Section 5.95.042(D), until the total number of permits does not exceed the one thousand four hundred seventy-five (1,475) limit. To avoid wholesale conversion of existing and new housing complexes into short-term lodgings, multi-unit developments within a residential district with five (5) or more units may permit a maximum of twenty (20) percent 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. Permits within Mixed-Use Water Zoning District (MU-W2) and Mixed-Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.). 1. No owner of a short-term lodging unit shall advertise for rent, or rent a lodging unit located within the Mixed-Use Water (MU-W2) or Mixed-Use Cannery Village and 15th Street (MU-CV/15th St.) zoning districts 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 a total of seventy-five (75) permits within the MU-W2 and MU-CV/15th St. districts at any time. 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 seventy-five (75) limit. Notwithstanding the foregoing, the seventy-five (75) permit maximum shall not apply to a short term lodging unit that was legally established as of INSERT DATE on a lot within a Mixed-Use Coastal Zoning District provided the owner maintains a valid short term lodging permit that is not subsequently revoked or abandoned. 4. Only a property owner that owns twenty (20) or more units under common ownership within the same Statistical Area as defined by the Land Use Element of the General Plan shall be eligible to obtain a short-term lodging permit(s) in the MU-W2 and/or MU-CV/15th St. districts. The eligible units may be located upon one (1) or more separate parcels or properties provided they cumulatively add up to twenty (20) or more units, and all units are located within the MU-W2 and/or MU-CV/15th St. districts. Common ownership means the same person, entity or managing partner holds legal and/or equitable title to no less than fifty percent (50%) of each property or entity. 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 35 Planning Commission Resolution No. PC2023-038 Page 8 of 10 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 two 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. E. Additional Requirements 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) of this section, 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 (B)(3) of this section; 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 of 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 36 Planning Commission Resolution No. PC2023-038 Page 9 of 10 dwelling unit that is managed by the owner of the owner-occupied dwelling unit. For purposes of this subsection, the term “owner-occupied” means the owner occupies and lives at the property and the property is used as the owner’s primary residence. For purposes of this subsection, “managed by the owner” means that the owner is occupying and living at the property while it is being rented or a short-term use. 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 (E)(4) of this section, or (b) two persons per bedroom plus two additional persons, up to a maximum of ten (10) 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 (E)(2) of this section or does not meet the parking requirements of subsection (E)(4) of this section 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-consecutive-day period. F. Additional Requirements for the Mixed-Use Water Zoning District (MU-W2) and Mixed- Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.). To the extent there is any conflict between this subsection and other provisions of the Code related to short-term lodging within the MU-W2 district or MU-CV/15th St. district, this subsection shall govern and control. 1. Prior to issuance of a short-term lodging permit, a management plan shall be submitted for review and approval by the Community Development Director. The management plan shall include the following: a. Acknowledgement and method of compliance with all operational standards identified in Subsection 21.48.115(D) for all short-term lodging units on the property or properties; b. Identification of professional management responsible for administering the permit; c. Evidence of eligibility and compliance with ownership requirements of Subsection 21.48.115(C)(4) above; d. Demonstration that on-site amenities are provided to guests; and 37 Planning Commission Resolution No. PC2023-038 Page 10 of 10 e. Parking management plan ensuring all available on-site parking remain free of obstructions and available for use by the short-term lodging user. For short-term lodging units that are non-conforming due to number of parking spaces provided, sufficient data to indicate that parking demand will be less than the required number of spaces or that other parking is available (e.g., City parking lot located nearby, on- street parking available, greater than normal walk in trade, alternative transportation, etc.) such that use or operation of the short term lodging permit will not reduce availability of parking in nearby residential neighborhoods. 2. No deed-restricted affordable housing units shall be used for short-term lodging. Section 4: The definition of “Bed and breakfast inn” of 21.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is amended to read as follows: 1. “Bed and breakfast inn” means a dwelling unit that offers guest rooms or suites for a fee for thirty (30) days or less, with incidental eating and drinking service provided from a single kitchen for guests only. Section 5: The definition of “Short-term lodging” of 21.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is amended to read as follows: 7. “Short-term lodging” means a dwelling unit that is rented or leased as a single housekeeping unit (see “Single housekeeping unit”) for a period of thirty (30) days or less. 38 Attachment No. PC 3 June 22, 2023 Planning Commission Meeting Minutes 39 INTENTIONALLY BLANK PAGE40 Planning Commission Meeting June 22, 2023 Page 7 of 9 1. Conduct a public hearing; 2. Find the amendment is not a project subject to the California Environmental Quality Act (CEQA) in accordance with Section 21065 of the California Public Resources Code and Sections 15060(c)(2), 15060(c)(3), and 15378 of the California Code of Regulations Title 14, Division 6, Chapter 3 (CEQA Guidelines). The proposed action is also exempt pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA applies only to projects, which have the potential for causing a significant effect on the environment; and 3. Adopt Resolution No. PC2023-026, recommending the City Council approve a Planned Community Development Plan Amendment allowing recreational facilities in Area 1 of the Newport Village Planned Community. Associate Planner Joselyn Perez utilized a presentation to review a vicinity map, surrounding land uses, the existing Orange County Transportation Authority (OCTA) site, the proposed amendments to PC-27, staff recommendation, and next steps. No ex parte communications were reported by Commissioners. Chair Ellmore opened the public hearing. Jim Mosher noted two grammatical errors and questioned if Area 1 is truly large enough for a field as stated in Section 3, whether the night lighting of the courts would be consistent with the development plan and the residential uses to the east, and if the amendment would be contrary to promoting alternative means of transportation by eliminating existing parking spaces at the transit facility. Deputy Director Campbell clarified that night lighting is referring to security and overnight lighting and any lighting to illuminate a sport court would be evaluated at the time a project comes forward. He agreed that a “field” may not be the right wording and suggested removing it. Mr. Campbell explained that as part of the amendment, required parking for the transit facility and any future recreational use will be evaluated when a project comes forward. Lastly Mr. Campbell shared a conversation from his earlier meeting with OCTA regarding the site and how current survey results indicate only a 30 percent utilization on average of the existing parking lot. Chair Ellmore closed the public hearing. In response to Vice Chair Rosene’s question, Assistant City Attorney Summerhill noted that there are exemptions that could and should apply in this scenario. Motion made by Commissioner Harris and seconded by Commissioner Langford to approve the item as recommended by staff. AYES: Barto, Ellmore, Harris, Klaustermeier, Langford, Lowrey, and Rosene NOES: None ABSTAIN: None ABSENT: None VIII. DISCUSSION ITEMS ITEM NO. 6 NEW VISITOR-SERVING ACCOMMODATIONS MU-W2 AND MU-CV/15TH ST Site Location: Various properties located in Lido Village, Cannery Village, McFadden Square and mixed-use areas on 15th Street, Agate Avenue, and Marine Avenue Summary: DocuSign Envelope ID: AC2F3D1B-4597-493D-AC6C-E2FA1EE0153B 41 Planning Commission Meeting June 22, 2023 Page 8 of 9 At City Council’s request on May 23, 2023, Planning Commission was directed to identify opportunities for to modify Titles 20 and 21 of the Newport Beach Municipal Code to facilitate new visitor serving accommodation opportunities within the MU-W2 and MU-CV/15th Street zones. The request also included several considerations: 1) applicability to multi-unit residential developments with 20 or more residential units under common ownership, 2) requirement for professional management, 3) requirement for project amenities, and 4) where there are no parking impacts that could reduce the availability of parking in residential neighborhoods. Recommended Action: 1. Receive public comment; 2. Find recommended actions exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15262 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3 because it has no potential to have a significant effect on the environment; 3. Form an ad hoc committee consisting of three Planning Commissioners appointed by the Chair to develop a recommendation for the Planning Commission to consider and forward to the City Council; or 4. Instruct staff to prepare a report focusing on the topic that will be reviewed by all the Planning Commissioners at a future date. Deputy Director Campbell utilized a presentation to provide an overview of the City Council’s direction to facilitate new visitor serving accommodation opportunities within the MU-W2 and MU-CV/15th Street zones, vicinity map, and background on the MU-W2 and MU-CV/15th Street zones. He asked the Planning Commission to either establish an ad hoc subcommittee or direct staff to prepare a report with code amendments. Jim Mosher thought the Planning Commission does not have enough information to move forward and suggested the item be added to the City Council agenda for discussion and direction. Chair Ellmore, Vice Chair Rosene, and Commissioner Barto supported a report prepared by staff. Motion made by Commissioner Barto and seconded by Chair Ellmore to instruct staff to prepare a report focused on the matter for review by the Planning Commission at a future date. AYES: Barto, Ellmore, Harris, Klaustermeier, Lowrey, and Rosene NOES: None RECUSED: Langford ABSENT: None IX. STAFF AND COMMISSIONER ITEMS ITEM NO. 7 MOTION FOR RECONSIDERATION None ITEM NO. 8 REPORT BY THE COMMUNITY DEVELOPMENT DIRECTOR OR REQUEST FOR MATTERS WHICH A PLANNING COMMISSION MEMBER WOULD LIKE PLACED ON A FUTURE AGENDA Deputy Director Campbell reported that the July 6 Planning Commission meeting is the annual meeting with three items and officer elections scheduled, City Council will appoint two commissioners by the next meeting, three items are anticipated for the July 20 meeting, and City Council approved the VE Zone amendment with changes to the side yard encroachment. DocuSign Envelope ID: AC2F3D1B-4597-493D-AC6C-E2FA1EE0153B 42 Attachment No. PC 4 Location Map of MU-W2 and MU-CV/15th ST Zoning Districts 43 INTENTIONALLY BLANK PAGE44 N E W P O R TP I E R LI D OP E N I N S U L A L ID OIS L E B A Y IS L A N D H A R B O RIS L A N D L I N D AIS L E COL L IN SIS L AND NE W P O R TDU N E S NOR THSTARBEAC H BALBOA ISLAND C H A N N E L BAL B O A ISLAND LI D O C H A N N E L N E W P O R TW E S T L I D O C H A N N E L TURN I NGBASI N HOSPITAL RD WEST RIVERSIDE AV E 28TH ST EAST23RD ST 15TH ST8TH STB L V D BAL B O A BLV DNEWPORTDR VIA L I DODOVERCL I F F ST IRVINEMAIN STAGATE AVEWESTSUPERIOR MARINE AVEPARK AVE W E S T C L I F F D R POLARISDRPA2023-0116_MU-W2_MU-CV15TH_Overview.mxd 0 0.20.1 MilesI MU-W2 and MU-CV/15th Street Zoning MU-CV/15TH ST MU-W2 45 INTENTIONALLY BLANK PAGE46 Attachment No. PC 5 Statistical Area Map 47 INTENTIONALLY BLANK PAGE48 SAN TA WEST BAL B O A TUST INNEWPORT ROADBI S O N MARGUERITEMAC AR T HU R V ONAVEDRIV E AVEN U E HILLSROAD DRIVETUST IN BL V D NEWPORTSTRE E T SAN CANYON COASTTRANSPORTATIONNEW PO R T SUP ER IO R BAL B O AAVEN U EAVEN U E BL V D EAST DRWESTMACART HUR FORD HILLHILLSOR AN G E CENTER EASTDRIVE SAN JOA Q UIN MIGUELDR DRIVEDRIVE BA L B O A BL V D BLVDANADRIVEAVEN U EJAMBOREEEAST CO R O N A D E L M A R F R E E W A Y BRI S T O L CAMPUSAVENUE BONITAKAR MANRDCOA S T DOVERAVENUECOASTAVEN U E HIGHWAY UNIVERSITY CENTERJO A Q U I N ROAD DRIVEHIGHWAY IR VINEAVEN U E DR EASTBLUFFSA N ROAD NEW PO R TSPYGLASS COASTCORRIDOR NEWPORTDRIVEU NIV ERSITY BLVDBL V D JAMBOREEN L1 A1 L3 J5 L2 L4 K2 M5 M6 K1 J6 M4J1 M1 M2 J4 F1 M3 H2 H3 F3 A2 J2 K3 J3 A3 G1 D3 B5 H4 D4 F4 B4 D1 H1 F8 F2 J6 D2 B1 C2 F5 F7 F6 C1 E2E1 B2 B3 F9 E3SAN TA WEST BAL B O A TUST INNEWPORT ROADBI S O N MARGUERITEMAC AR T HU R V ONAVEDRIV E AVEN U E HILLSROAD DRIVETUST IN BL V D NEWPORTSTRE E T SAN CANYON COASTTRANSPORTATIONNEW PO R T SUP ER IO R BAL B O AAVEN U EAVEN U E BL V D EAST DRWESTMACART HUR FORD HILLHILLSOR AN G E CENTER EASTDRIVE SAN JOA Q UIN MIGUELDR DRIVEDRIVE BA L B O A BL V D BLVDANADRIVEAVEN U EJAMBOREEEAST CO R O N A D E L M A R F R E E W A Y BRI S T O L CAMPUSAVENUE BONITAKAR MANRDCOA S T DOVERAVENUECOASTAVEN U E HIGHWAY UNIVERSITY CENTERJO A Q U I N ROAD DRIVEHIGHWAY IR VINEAVEN U E DR EASTBLUFFSA N ROAD NEW PO R TSPYGLASS COASTCORRIDOR NEWPORTDRIVEU NIV ERSITY BLVDBL V D JAMBOREEN L1 A1 L3 J5 L2 L4 K2 M5 M6 K1 J6 M4J1 M1 M2 J4 F1 M3 H2 H3 F3 A2 J2 K3 J3 A3 G1 D3 B5 H4 D4 F4 B4 D1 H1 F8 F2 J6 D2 B1 C2 F5 F7 F6 C1 E2E1 B2 B3 F9 E3 STATISTICAL AREAMAP CITY of NEWPORT BEACHGENERAL PLAN Figure LU3 City of Newport BeachBoundary 0 10.5 Miles Statistical Area Boundary LU3_Statistical_Area_Map.mxd March 19, 2013 49 INTENTIONALLY BLANK PAGE50 Attachment No. PC 6 Redline Strikeout of Proposed Code Revisions 51 INTENTIONALLY BLANK PAGE52 PROPOSED CODE AMENDMENT NO. PA2023-0116 Chapter 5.95 and Title 20 Revisions (Redline Strikeouts) Section 1: Subsection (B) of Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code is hereby amended to read as follows: B. Over a thousand dwelling units within residential zones near the City’s beaches and harbor are rented for less than thirty (30) consecutive calender days or less with the vast majority of those rentals occurring during the summer when the demand for parking and City services is the greatest. Section 2: Subsection (B) of Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code is hereby amended to read as follows: C. Many of the occupants of short term lodging units are permanent residents of areas distant from Newport Beach and the City has no effective way to prevent occupants from continuing to violate provisions of this Code and the Cal. Pen. al 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. Section 3: Subsection (L) of Section 5.95.005 (Purpose and Findings) 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 and mixed-use areas as well as to prevent and address the impacts on residential neighborhoods posed by short term lodgings. Section 4: Subsection (M) is hereby added to Section 5.95.005 (Purpose and Findings) of the Newport Beach Municipal Code to read as follows: M. With appropriate restrictions, certain mixed-use zones present an opportunity to accommodate tourists while protecting the City's residential zones. Section 5: Section 5.95.010 (Definitions) of the Newport Beach Municipal Code is amended to read as follows: 5.95.010 Definitions. For the purpose of this chapter, the following definitions shall apply: A. “Accessory dwelling unit” shall have the same definition as set forth in Chapter 20.70. B. “Agent” shall mean any person who is authorized in writing by the owner to represent and act for an owner. C. “Booking transaction” shall mean any reservation or payment service provided by a person who facilitates a short term lodging rental transaction between a transient user and owner for the use of a unit for a period of less than thirty (30) consecutive calendar days or less. D. “City Manager” shall mean the City Manager of the City or his or her designee. 53 E. “Finance Director” shall mean the Finance Director of the City or his or her designee. DF. “Gross floor area” shall mean the area of the lodging unit that includes the surrounding exterior walls and any interior finished portion of a structure that is accessible and that measures more than six feet from finished floor to ceiling. Stairwells and elevator shafts above the first level shall be excluded from the calculation of gross floor area. EG. “Home-sharing” shall mean an activity whereby the owner hosts a transient user in the owner’s lodging unit, for compensation, for periods of less than thirty (30) consecutive calendar days, during which time the owner of the unit lives on site, in the unit, throughout the transient user’s stay and the owner, the transient user and any other occupants live together in the same unit as a single housekeeping unit. FH. “Hosting platform” shall mean a person, other than an owner or agent, who participates in the short term lodging business by facilitating a booking transaction using any medium of facilitation. GI. “Lodging unit” or “unit” shall mean a “dwelling unit” as that term is defined in Chapter 20.70. An accessory dwelling unit shall not be considered a lodging unit or unit for purposes of this chapter. HJ. "Multi-use area" shall mean those areas of the City designated by Title 20 and Title 21 as Mixed-Use Water (MU-W2) and Mixed-Use Cannery Village and 15th Street (MU- CV/15th St.). IJ. “Owner” shall mean the person(s) that hold(s) legal and/or equitable title to the lodging unit. K. “Person” shall mean any individual and any form of business entity including, but not limited to, all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, business or common law trusts, societies, or limited liability companies. KL. “Residential district” shall mean those areas of the City so designated by Title 20 as well as any other area in the City designated for a residential use as part of a planned community development plan, specific area plan or planned residential district. JM. “Short term” shall mean a lodging unit that is rented or leased as a single housekeeping unit for a period of less than thirty (30) consecutive calendar days or less. This also includes home-sharing. LN. “Short term lodging unit registry” shall mean the published registry maintained by the City that sets forth a list of all owners and the address of all units that have a valid short term lodging permit and business license with the City, a copy of which is available, without charge, to any person who requests a copy and which shall be accessible on the City’s website. MO. “Single housekeeping unit” shall have the same definition as set forth in Chapter 20.70. NP. “Transient” or “transient user” shall mean any person or persons who, for any period less than of thirty (30) consecutive calendar days or less either at his or her own expense, or at the expense of another, obtains lodging in a lodging unit or the use of any lodging space in any unit, for which lodging or use of lodging space a charge is made. Section 6: Section 5.95.015 (Residential Properties Eligible for Short Term Lodging Permits) of the Newport Beach Municipal Code is amended to read as follows: 54 5.95.015 Residential Properties Eligible for Short Term Lodging Permits. Only properties in a residential district or multi-use area that are authorized under Titles 20 and 21 and this chapter shall be eligible for a short term lodging permit. Subsequent to June 1, 2004, no annual permit shall be issued to or renewed for any dwelling unit on any parcel zoned for “Single-Unit Residential (R-1)” or that is designated for a single-family residential use as part of a planned community development plan, specific area plan or planned residential district, unless a permit has previously been issued for that lodging unit and the permit was not subsequently revoked. Section 7: Section 5.95.020 (Permit Required) of the Newport Beach Municipal Code is amended to read as follows: 5.95.020 Permit Required. No owner of a lodging unit shall advertise for rent or rent a lodging unit located within a residential district or multi-use area for a short term without a valid short term lodging permit for that unit issued pursuant to this chapter. Section 8: Section 5.95.030 (Application for Permit) of the Newport Beach Municipal Code is 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: 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. Acknowledgment of receipt and inspection of a copy of all regulations pertaining to the operation of a short term lodging unit. 55 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. 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) of this section. 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 9: Section 5.95.035 (Denial of Permits) of the Newport Beach Municipal Code is 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, or the short term lodging permit is not eligible for reinstatement. Section 10: Section 5.95.042 (Maximum Number of Permits) of the Newport Beach Municipal Code is amended to read as follows: 5.95.042 Maximum Number of Permits. A. Except as provided in subsection (B), Tthe maximum number of short term lodging permits in a residential district shall be limited to one thousand five hundred fifty (1,550) one thousand four hundred seventy-five (1,475) permits at any time. If there are more than one thousand five hundred fifty (1,550) one thousand four hundred seventy five (1,475) valid permits in residential districts that have been issued as of the effective date of the ordinance codified in this section, an owner shall be permitted to renew, reinstate, or transfer a valid permit in accordance with the 56 provisions of this chapter; however, no new permit shall be issued to any person one on the waiting list, as described in subsection (FD) of this section, until the total number of residential district permits does not exceed the one thousand five hundred fifty (1,550) one thousand four hundred seventy-five (1,475). 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 Sections 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 within the residential district, multi- unit developments with five (5) or more units may permit a maximum of twenty (20) percent of the total number of units to be short term lodgings (rounded down to the nearest whole number). B. The maximum number of short term lodging permits in the multi-use area shall be limited to seventy-five (75) permits. No new permit shall be issued to any person on the waiting list, as described in subsection (FD) of this section, until the total number of multi-use area permits is less than seventy-five (75). Notwithstanding the foregoing, the seventy-five (75) permit maximum shall not apply to a short term lodging unit that was legally established as of INSERT DATE on a lot within a Mixed-Use Coastal Zoning District provided the owner maintains a valid short term lodging permit that is not subsequently revoked or abandoned. C. For purposes of calculating the maximum number of permits available described in subsection (A) or (B) of this section, a permit shall be deemed valid and unavailable until it is abandoned in accordance with Sections 5.95.030(B) through (F), and/or Section 5.95.043(B) or, if the short term lodging permit has been revoked. D.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 Sections 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 (FD) of this section. E.C. An owner seeking to transfer a valid short term lodging permit that files an application within the time frames 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 (FD) of this section. F.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 as provided for in Section 1.08.080. 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. Section 11: Subsections A(19) through A(22) of Section 5.95.045 (Conditions) of the Newport Beach Municipal Code is amended to read as follows: 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 57 Section 1.08.080. If, based on the inspection, it is determined that the information submitted to the City in accordance with Section 5.95.030 was false, in addition to any other remedy set forth in this chapter, the owner agrees that the owner shall be liable for the cost of conducting the inspection. 20. The owner shall provide the City with a copy of any written rental agreement(s) and the good neighbor policy, within seven 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 nor 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 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. Section 12: Section 5.95.055 (Issuance of Administrative Subpoenas) of the Newport Beach Municipal Code is amended to read as follows: 5.95.055 Issuance of Administrative Subpoenas. The City Manager shall have the authority to issue and serve administrative subpoenas to the owner, agent or hosting platform, as necessary, to obtain specific information regarding short term rental listings located in the City, including but not limited to the names of the persons responsible for each such listing, the address of each such listing, the length of stay for each such listing and the price paid for each stay, to determine whether the short term rental listing complies with this chapter. Any subpoena issued pursuant to this section shall not require the production of information sooner than thirty (30) calendar days from the date of service. A person that has been served with an administrative subpoena may seek judicial review during that thirty (30) calendar day period. Failure to respond to an administrative subpoena in accordance with the terms set forth therein shall be punishable in accordance with Section 5.95.060 and the City may file a judicial action to compel compliance with the subpoena. Section 13: Section 5.95.060 (Violations, Penalties and Enforcement) of the Newport Beach Municipal Code is deleted in its entirety: 5.95.060 Violations, Penalties and Enforcement. A. It shall be unlawful for any person to violate any provisions or to fail to comply with any of the requirements of this chapter. 58 B. In addition to, or separate from, the foregoing criminal penalties, any person violating any of the provisions or failing to comply with any of the requirements of this chapter is subject to the issuance of an administrative citation pursuant to the provisions of Section 1.04.010(E) and Chapter 1.05. Section 14: Subsection A(3) of Section 5.95.065 (Suspensions and Revocations) of the Newport Beach Municipal Code is amended to read as follows: 3. If a lodging unit that is subject to a short term lodging permit has been the location of two or more loud or unruly gatherings, as defined in Chapter 10.66, while the lodging unit was occupied on a short term basis, within any twenty-four (24) month period, the permit may be suspended for a period of one year or revoked in accordance with subsection (B) of this section. A loud or unruly gathering that occurred prior to the passage of fourteen (14) calendar days from the mailing of notice to the owner in compliance with Section 10.66.030(D) shall not be included within the calculation of the two or more loud or unruly gatherings required to revoke a short term lodging permit. Section 15: Subsection (B) of Section 5.95.065 (Suspensions and Revocations) of the Newport Beach Municipal Code is amended to read as follows: B. Permits shall be suspended or revoked, only in the manner provided in this section. 1. The Finance Director shall investigate whenever he or she has reason to believe that an owner has submitted an application that contains false information or committed a violation of a permit condition, this Code, state or federal law related to a permitted unit. Such investigation may include, but is not limited to, on-site property inspections. Should the investigation reveal substantial evidence to support a finding that warrants a suspension or revocation of the short term lodging permit, the Finance Director shall issue written notice of intention to suspend or revoke the short term lodging permit. The written notice shall be served on the owner in accordance with Section 1.08.080, and shall specify the facts which, in the opinion of the Finance Director constitute substantial evidence to establish grounds for imposition of the suspension and/or revocation, and specify the proposed time the short term lodging permit shall be suspended and/or that the short term lodging permit shall be revoked within thirty (30) calendar days from the date the notice is given, unless the owner files with the Finance Director, before the suspension and/or revocation becomes effective, a request for hearing before a hearing officer, who shall be retained by the City, and pays the fee for the hearing established by resolution of the City Council. 2. If the owner requests a hearing and pays the hearing fee, established by resolution of the City Council, within the time specified in subsection (B)(1) of this section, the Finance Director shall serve written notice on the owner, pursuant to Section 1.08.080, setting forth the date, time and place for the hearing. The hearing shall be scheduled not less than fifteen (15) calendar days, nor more than sixty (60) calendar days, from the date on which notice of the hearing is served by the Finance Director. The hearing shall be conducted according to the rules normally applicable to administrative hearings. At the hearing, the hearing officer will preside over the hearing, take evidence and then submit proposed findings and recommendations to the City Manager. The City Manager shall suspend or revoke the short term lodging permit only upon a finding that a violation has been proven by a preponderance of the evidence, and that the suspension or revocation is consistent with the provisions of this section. The City Manager shall render a decision within thirty (30) calendar days of the 59 hearing and the decision shall be final as to the City but subject to judicial review pursuant to Cal. Code Civ. Proc. Section 1094.5. Section 16: Section 5.95.065 (License and Permit Closure) of the Newport Beach Municipal Code is amended to read as follows: 5.95.080 License and Permit Closure. A. Any owner that has ceased operating a short term lodging unit shall inform the Finance Director in writing of the date of the last rental, and having done such, the short term lodging permit shall be closed. The City will send a final transient occupancy tax and visitor service fee bill, which will be due and payable thirty (30) days from the date of the invoice. B. The Finance Director shall close any permit that has no short term lodging activity for a period of two (2) consecutive annual reporting periods years as evidenced by the owner and/or agent remitting zero dollars ($0.00) on the required transient occupancy tax and visitor service fee forms or the owner/agent has failed failing to return these transient occupancy and visitor service forms. After any permit closure pursuant to this subsection, the owner may reapply one (1) time for reinstatement of the short term lodging permit which shall be processed in accordance with Section 5.95.030. Any subsequent closure of the short term lodging permit pursuant to this subsection shall not be eligible for reinstatement. Section 17: Rows entitled “Visitor Accommodations, Residential” and “Short Term Lodging” are hereby added to the “Residential Uses” section of Table 2-8 (Allowed Uses) of Section 20.22.020 (Mixed-Use Zoning Districts Land Uses and Permit Requirements) of the Newport Beach Municipal Code as follows: TABLE 2-8 ALLOWED USES AND PERMIT REQUIREMENTS Mixed-Use Zoning Districts Permit Requirements P Permitted by Right CUP Conditional Use Permit (Section 20.52.020) MUP Minor Use Permit (Section 20.52.020) LTP Limited Term Permit (Section 20.52.040) — Not Allowed * Land Use MU-V MU-MM (6) MU-DW MU-CV/15th St. (7) Specific Use Regulations See Part 7 of this title for land use definitions. See Chapter 20.12 for unlisted uses. Residential Uses Accessory Dwelling Units and Junior Accessory Dwelling Units P P P P Section 20.48.200 Single-Unit Dwellings Located on 1st floor — — — P (3) Section 20.48.130 Located above 1st floor P (1) — — P (3) Section 20.48.130 60 TABLE 2-8 ALLOWED USES AND PERMIT REQUIREMENTS Mixed-Use Zoning Districts Permit Requirements P Permitted by Right CUP Conditional Use Permit (Section 20.52.020) MUP Minor Use Permit (Section 20.52.020) LTP Limited Term Permit (Section 20.52.040) — Not Allowed * Land Use MU-V MU-MM (6) MU-DW MU-CV/15th St. (7) Specific Use Regulations See Part 7 of this title for land use definitions. See Chapter 20.12 for unlisted uses. Multi-Unit Dwellings Located on 1st floor — P (1)(2) P (1) P (3) Section 20.48.130 Located above 1st floor P (1) P (1)(2) P (1) P (3) Section 20.48.130 Two-Unit Dwellings Located on 1st floor — — — P (3) Section 20.48.130 Located above 1st floor P (1) — — P (3) Section 20.48.130 Home Occupations P P (1) P P Section 20.48.130 Live-Work Units P P (1)(2) P P (3) Visitor Accommodations, Residential Short Term Lodging — — — P Chapter 5.95 Section 18: Rows entitled “Visitor Accommodations, Residential” and “Short Term Lodging” are hereby added to the “Residential Uses” section of Table 2-9 (Allowed Uses) of Section 20.22.020 (Mixed-Use Zoning Districts Land Uses and Permit Requirements) of the Newport Beach Municipal Code as follows: 61 TABLE 2-9 ALLOWED USES AND PERMIT REQUIREMENTS Mixed-Use Zoning Districts Permit Requirements P Permitted by Right CUP Conditional Use Permit (Section 20.52.020) MUP Minor Use Permit (Section 20.52.020) LTP Limited Term Permit (Section 20.52.040) — Not allowed * Land Use MU-W1 (5)(6) MU-W2 Specific Use Regulations See Part 7 of this title for land use definitions. See Chapter 20.12 for unlisted uses. Residential Uses Accessory Dwelling Units and Junior Accessory Dwelling Units P P Section 20.48.200 Single-Unit Dwellings Located on 1st floor — — Located above 1st floor P (1) P (2) Section 20.48.130 Multi-Unit Dwellings Located on 1st floor — — Located above 1st floor P (1) P (2) Section 20.48.130 Two-Unit Dwellings Located on 1st floor — — Located above 1st floor P (1) P (2) Home Occupations P P (2) Section 20.48.110 Visitor Accommodations, Residential Short Term Lodging — P Chapter 5.95 Section 19: Subsection A(3)(f) of Section 20.38.060 (Nonconforming Parking) of the Newport Beach Municipal Code is amended to read as follows: f. Outside the coastal zone, dwellings within the residential development shall not be rented for periods of less than thirty (30) days or less. Refer to subsection (A)(4)(f) of this section for short-term lodging allowances for developments within the coastal zone; and Section 20: Subsection B(4)(h) of Section 20.48.205 (SB 9 Housing Developments and Urban Lot Splits in Single-Unit Residential Zoning Districts) of the Newport Beach Municipal Code is amended to read as follows: h. Short-Term Lodging. Any dwelling unit permitted pursuant to an SB 9 housing development or urban lot split shall not be rented for periods of less than thirty (30) days or less. 62 Section 21: The definition of “Bed and breakfast inn” of Section 20.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is amended to read as follows: 1. “Bed and breakfast inn” means a dwelling unit that offers guest rooms or suites for a fee for less than thirty (30) days or less, with incidental eating and drinking service provided from a single kitchen for guests only. Section 22: The definition of “Short-term lodging” of Section 20.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is amended to read as follows: 5. “Short-term lodging” means a dwelling unit that is rented or leased as a single housekeeping unit (see “Single housekeeping unit”) for a period of less than thirty (30) days or less, subject to the requirements of Chapter 5.95 (Short Term Lodging Permits) and any additional standards required by the City Manager. 63 PROPOSED LOCAL COSTAL PLAN AMENDMENT NO. PA2023-0116 Title 21 Revisions (Redline Strikeouts) Section 1: Rows entitled “Visitor Accommodations, Residential” and “Short Term Lodging” are hereby added to the “Residential Uses” section of Table 21.22-1 (Allowed Uses) of Section 21.22.020 of the Newport Beach Municipal Code as follows: 21.22.020 Mixed-Use Coastal Zoning Districts Land Uses and Permit Requirements. TABLE 21.22-1 ALLOWED USES Mixed-Use Zoning Districts A Allowed — Not Allowed * Land Use MU-V (6) MU-MM (4) MU-CV/15th St. (5)(6) Specific Use Regulations See Part 7 of this Implementation Plan for land use definitions. See Chapter 21.12 for unlisted uses. Residential Uses Single-Unit Dwellings Located on 1st floor — — A (3) Located above 1st floor A (1) — A (3) Multi-Unit Dwellings Located on 1st floor — A (1)(2) A (3) Located above 1st floor A (1) A (1)(2) A (3) Two-Unit Dwellings Located on 1st floor — — A (3) Located above 1st floor A (1) — A (3) Home Occupations A A (1) A Live-Work Units A A (1)(2) A (3) Accessory Dwelling Units and Junior Accessory Dwelling Units A A A Section 21.48.200 Visitor Accommodations, Residential Short-Term Lodging — — A Chapter 5.95 and Section 21.48.115 Section 2: Rows entitled “Visitor Accommodations, Residential” and “Short Term Lodging” are hereby added to the “Residential Uses” section of Table 21.22-2 (Allowed Uses) of Section 21.22.020 of the Newport Beach Municipal Code as follows: 64 TABLE 21.22-2 ALLOWED USES Mixed-Use Coastal Zoning Districts A — Allowed Not Allowed * Land Use MU-W1 (3) MU-W2 (5) Specific Use Regulations See Part 7 of this Implementation Plan for land use definitions. See Chapter 21.12 for unlisted uses. Residential Uses Single-Unit Dwellings Located on 1st floor — — Located above 1st floor A (1) A (2) Multi-Unit Dwellings Located on 1st floor — — Located above 1st floor A (1) A (2) Two-Unit Dwellings Located on 1st floor — — Located above 1st floor A (1) A (2) Home Occupations A A (2) Accessory Dwelling Units and Junior Accessory Dwelling Units A A Section 21.48.200 Visitor Accommodations, Residential Short-Term Lodging — A Chapter 5.95 and Section 21.48.115 Section 3: Section 21.48.115 (Short-Term Lodging) of the Newport Beach Municipal Code is amended in its entirety to read as follows: 21.48.115 Short-Term Lodging. A. Purpose. This section provides standards for the operation of short-term lodging units to prevent overburdening City services and adverse impacts on residential neighborhoods, multi- use areas, and on coastal access and resources. B. Permits within a Residential District. 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 fifty (1,550) one thousand four 65 hundred seventy- five (1,475) permits within a residential district at any time. If there are more than one thousand five hundred fifty (1,550) one thousand four hundred seventy- five (1,475) valid permits that have been issued within a residential district as of the effective date of Ordinance No. 2023-__ January 13, 2022, no new permit shall be issued to any person one 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 fifty (1,550) one thousand four hundred seventy- five (1,475) limit. To avoid wholesale conversion of existing and new housing complexes into short-term lodgings, multi-unit developments within a residential district with five (5) or more units may permit a maximum of twenty (20) percent 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. Permits within Mixed-Use Water Zoning District (MU-W2) and Mixed-Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.). 1. No owner of a short-term lodging unit shall advertise for rent, or rent a lodging unit located within the Mixed-Use Water (MU-W2) or Mixed-Use Cannery Village and 15th Street (MU-CV/15th St.) zoning districts 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 a total of seventy-five (75) permits within the MU-W2 and MU-CV/15th St. districts at any time. 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 seventy-five (75) limit. Notwithstanding the foregoing, the seventy-five (75) permit maximum shall not apply to a short term lodging unit that was legally established as of INSERT DATE on a lot within a Mixed-Use Coastal Zoning District provided the owner maintains a valid short term lodging permit that is not subsequently revoked or abandoned. 4. Only a property owner that owns twenty (20) or more units under common ownership within the same Statistical Area as defined by the Land Use Element of the General Plan shall be eligible to obtain a short-term lodging permit(s) in the MU-W2 and/or MU-CV/15th St. districts. The eligible units may be located upon one (1) or more separate parcels or properties provided they cumulatively add up to twenty (20) or more units, and all units are located within the MU-W2 and/or MU-CV/15th St. districts. Common ownership means the same person, entity or managing partner holds legal and/or equitable title to no less than fifty percent (50%) of each property or entity. DC. 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: 66 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 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. ED. Additional Permit Conditions Requirements 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) of this section, 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 (B)(3) of this section; 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 of 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. For purposes of this subsection, the term “owner-occupied” means the owner occupies and lives at the property and the property is used as the owner’s primary residence. For purposes of this subsection, “managed by the owner” means that the owner is occupying and living at the property while it is being rented or a short-term use. 67 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 (ED)(4) of this section, or (b) two persons per bedroom plus two additional persons, up to a maximum of ten (10) 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 (ED)(2) of this section or does not meet the parking requirements of subsection (ED)(4) of this section 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-consecutive-day period. F. Additional Requirements for the Mixed-Use Water Zoning District (MU-W2) and Mixed-Use Cannery Village and 15th Street Zoning District (MU-CV/15th St.). To the extent there is any conflict between this subsection and other provisions of the Code related to short-term lodging within the MU-W2 district or MU-CV/15th St. district, this subsection shall govern and control. 1. Prior to issuance of a short-term lodging permit, a management plan shall be submitted for review and approval by the Community Development Director. The management plan shall include the following: a. Acknowledgement and method of compliance with all operational standards identified in Subsection 21.48.115(D) for all short-term lodging units on the property or properties; b. Identification of professional management responsible for administering the permit; c. Evidence of eligibility and compliance with ownership requirements of Subsection 21.48.115(C)(4) above; d. Demonstration that on-site amenities are provided to guests; and e. Parking management plan ensuring all available on-site parking remain free of obstructions and available for use by the short-term lodging user. For short-term lodging units that are non-conforming due to number of parking spaces provided, sufficient data to indicate that parking demand will be less than the required number of spaces or that other parking is available (e.g., City parking lot located nearby, on- street parking available, greater than normal walk in trade, alternative transportation, etc.) such that use or operation of the short term lodging permit will not reduce availability of parking in nearby residential neighborhoods. 68 2. No deed-restricted affordable housing units shall be used for short-term lodging. Section 4: The definition of “Bed and breakfast inn” of 21.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is amended to read as follows: 1. “Bed and breakfast inn” means a dwelling unit that offers guest rooms or suites for a fee for less than thirty (30) days or less, with incidental eating and drinking service provided from a single kitchen for guests only. Section 5: The definition of “Short-term lodging” of 21.70.020 (Definitions of Specialized Terms and Phrases) of the Newport Beach Municipal Code is amended to read as follows: 7. “Short-term lodging” means a dwelling unit that is rented or leased as a single housekeeping unit (see “Single housekeeping unit”) for a period of less than thirty (30) days or less. 69 INTENTIONALLY BLANK PAGE70 From:Clark Cashion To:Planning Commission Cc:Mark Moshayedi Subject:Request to Include Zone MU-MM in Short-Term Lodging Regulations Date:October 13, 2023 12:22:17 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Planning CommissionCity of Newport Beach 100 Civic Center DriveNewport Beach, CA 92660 Subject: Request to Include Zone MU-MM in Short-Term Lodging Regulations Dear Members of the Planning Commission, I hope this letter finds you well. I am writing as one of the property owners in Zone MU-MM (Mixed-Use Marine), and I would like to respectfully request the inclusion of Zone MU-MMin the list of areas covered by the proposed amendments to short-term lodging regulations, as outlined in Local Coastal Program Amendment No. PA2023-0116. I believe that our community, within Zone MU-MM, can benefit from the proposed changes.Short-term lodging regulations can enhance the local economy and provide homeowners with opportunities for responsible and regulated rental options. It can also contribute to thevibrancy and diversity of our area. I understand that the Planning Commission is scheduled to consider these amendments on October 19, 2023. I kindly request that you take my suggestion into consideration during yourdeliberations. Inclusion of Zone MU-MM in these regulations would allow residents like myself to participate in short-term lodging while adhering to the defined guidelines, ensuring aharmonious coexistence with our neighbors and the broader community. I am willing to participate in any public meetings or discussions related to this proposal and provide any additional information that may be required to support my request. Thank you for your attention to this matter. I believe that the expansion of short-term lodgingregulations to include Zone MU-MM would be a positive step for our community. I look forward to the Planning Commission’s consideration of this request and the potential benefitsit can bring to our area. Sincerely, Mark Moshayedi CEOMSM Global Ventures LLC 2600 East Coast Hwy Suite 240Corona Del Mar, CA 92625 Cell: (949)350-4019 Planning Commission - October 19, 2023 Item No. 3a - Additional Materials Received Municipal Code and LCP Amendments Related to Short Term Lodging (PA2023-0116) ———— Clark Cashion Director of Acquisitions Space Investment Partners 2600 E Coast Hwy, Ste 240Corona Del Mar, CA 92625 c: 949.322.9080 | www.spaceip.com Planning Commission - October 19, 2023 Item No. 3a - Additional Materials Received Municipal Code and LCP Amendments Related to Short Term Lodging (PA2023-0116) From:Denys Oberman To:Planning Commission; City Clerk"s Office Subject:FW: Comments to Agenda Item # 3- Proposal to reallocate STL to Mixed Use Zone from Residential Date:October 18, 2023 9:25:35 AM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. We noticed a typographical error in the prior Comments submitted on October 17th at 6:02 pm. We indicated that the City’s proposal being considered is to reduce the number of STLs in residential zones to, 1425. The City’s proposal was, 1475. Please enter this Correction into the record along with our prior comments. Thank you, Denys H. Oberman …………………………………………………………………………………………………….. Regards, Denys H. Oberman, CEO OBERMAN Strategy and Financial Advisors 19200 Von Karman Avenue, 6th Floor Irvine, CA 92612 Tel (949) 476-0790 Cell (949) 230-5868 Fax (949) 752-8935 Email: dho@obermanassociates.com CONFIDENTIALITY NOTICE: The documents accompanying this transmission contain confidential information belonging to thesender which is legally privileged. The information is intended only for the use of the individual or entity named above. If you arenot the intended recipient, you are hereby notified that any disclosure, copying, distribution or the taking of any action in relianceon the contents of this telecopied information is strictly prohibited. If you have received this transmission in error, please notify usimmediately at 949/476-0790 or the electronic address above, to arrange for the return of the document(s) to us. From: Denys Oberman <dho@obermanassociates.com> Sent: Tuesday, October 17, 2023 6:02 PM To: planningcommission@newportbeachca.gov Cc: cityclerk@newportbeachca.gov; dho@obermanassociates.com; BOB YANT <byant@aol.com>; Fred Levine <fredric.mark.levine@gmail.com>; Debbie Stevens <dstevens@envaudit.com>; Nancy Planning Commission - October 19, 2023 Item No. 3b - Additional Materials Received Municipal Code and LCP Amendments to Short Term Lodging (PA2023-0116) Scarbrough <nancy@nancyfornewport.com>; Lee Pearl <smartpearl1@hotmail.com>; lou@qedhealth.com; Gary Cruz <gdcruz1949@outlook.com>; Gina Cruz <gcruz@hybridapparel.com>; Paul Watkins <paul@lawfriend.com>; Carmen Rawson <carmen_rawson@att.net> Subject: Comments to Agenda Item # 3- Proposal to reallocate STL to Mixed Use Zone from Residential Chair and Members of the Planning Commission: We are writing this letter to briefly comment on the proposal to amend the City’s municipal code pertaining to Short Term Lodging uses ( STLs) We appreciate, and are in favor of the proposal to designate Mixed Use zones to permit STLs in that zone- specifically, it is being proposed that of the 1550 total maximum STLs permitted, that 75 would be reallocated to Mixed Use, with a corresponding reduction in STLs in Residential zones to a max to 1425. The concept of allocating/reallocating STL allowance FROM residential TO Mixed Use or other appropriate commercial zone is sound. However, there needs to be a specific plan to reduce the number of STLs in the residential zones so these are reduced before permitting the STLs in Mixed Use zones. The City has far too many STL uses in its residential zones, based on the following: The City per its own admission has thus far been “ineffective” at controlling the impacts associated with these uses. The reality is that the City’s orientation has been overly permissive, and the responsibility for code enforcement unclear. The large number of STLs in residential zones takes away from our City’s ability to have adequate Housing stock for those who need housing that work/live/vote here. NOTE--Even members of the Coastal Commission expressed concern with the high number of permitted STLs in Newport’s residential zones. There are multiple actions that we suggest to implement a reduction in STLs in residential zones: Eliminate transferability of STL permits Attrition and no waiting list. Permits which have expired are not eligible to be reactivated Commitment to higher fines and more rigorous path for repeated offenders----” 3 strikes you’re out” with permit revoked. Operators of unpermitted STLs in any zone should be subject to citation and immedicate cease and desist Even with reallocation of STLs to Mixed use zones, there should be a Management Plan required for each applicant . Planning Commission - October 19, 2023 Item No. 3b - Additional Materials Received Municipal Code and LCP Amendments to Short Term Lodging (PA2023-0116) We encourage the Commission to consider an even greater reallocation of STL uses to Mixed Use- both in the Penninsula area, and with consideration to other areas where Mixed Use already exists, and/or is being actively considered, such as along Mariners Mile and CDM. Also to consider other options for filling some of the Vacation serving demand is to consider planning for additional Hotel or Hotel/resort uses in appropriate zones throughout the City. Thank you for your consideration. Denys H. Oberman Resident and Member of multi-neighborhood leadership council …………………………………………………………………………………………………………………………………………….. Regards, Denys H. Oberman, CEO OBERMAN Strategy and Financial Advisors 19200 Von Karman Avenue, 6th Floor Irvine, CA 92612Tel (949) 476-0790Cell (949) 230-5868 Fax (949) 752-8935 Email: dho@obermanassociates.com CONFIDENTIALITY NOTICE: The documents accompanying this transmission contain confidential information belonging to the sender which is legally privileged. The information is intended only for the use of the individual or entity named above. If you arenot the intended recipient, you are hereby notified that any disclosure, copying, distribution or the taking of any action in relianceon the contents of this telecopied information is strictly prohibited. If you have received this transmission in error, please notify usimmediately at 949/476-0790 or the electronic address above, to arrange for the return of the document(s) to us. Planning Commission - October 19, 2023 Item No. 3b - Additional Materials Received Municipal Code and LCP Amendments to Short Term Lodging (PA2023-0116) From:Carmen Rawson To:Planning Commission Cc:City Clerk"s Office Subject:Planning Commission Mtg 2023-10-19 - Agenda Item # 3- Municipal Code Amendments related to Short TermLodging (PA2023-0116) Date:October 17, 2023 11:29:26 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Planning Commissioners, Regarding the subject I am in favor of allowing short term lodging permits (STLPs) in the specified MixedUse zoning districts. However, I have the following comments about the proposed path forward: According to the Active Short Term Lodging Permit Dashboard there are currently 1,533 active permits inNewport Beach (or 17 less than the total 1,550 allowed). Does that mean there are no pending permitsfor property owners that had been waiting for one (STLP Waiting List)? If that is the case then any newadditional STLPs (17 to achieve the maximum of 1,550) should be reallocated to the Mixed Use zoningdistricts. However, if there is a STLP Waiting List then any "Mixed Use zone" property owner wanting to get aSTLP should get on the waiting list as everyone else. With time the reallocation of a maximum of 75STLPs to the Mixed Use zoning districts will happen as other current active permits (in the residentialzones) are cancelled/closed. In my opinion it is not right for the "Mixed Use zone" property owners to be given all of the sudden priorityand bypass the existing STLP Waiting List. Sincerely,Carmen RawsonBalboa Peninsula Resident Planning Commission - October 19, 2023 Item No. 3b - Additional Materials Received Municipal Code and LCP Amendments to Short Term Lodging (PA2023-0116) October 19, 2023, Planning Commission Item 3 Comments These comments on a Newport Beach Planning Commission agenda item are submitted by: Jim Mosher ( jimmosher@yahoo.com ), 2210 Private Road, Newport Beach 92660 (949-548-6229). Item No. 3. MUNICIPAL CODE AMENDMENTS RELATED TO SHORT TERM LODGING (PA2023-0116) With regard to Section 1.4 of proposed Resolutions No. PC2023-037 and PC2023-038, and the task before the Commission, it seems important to note what the City Council actually did on May 23, 2023. It is highly arguable that the Council “effectively” initiated amendments. Instead, under the agenda heading “XIV. MATTERS WHICH COUNCIL MEMBERS HAVE ASKED TO BE PLACED ON A FUTURE AGENDA (NON-DISCUSSION ITEM),” the Council, without discussion or further explanation, took a straw vote of a request from Mayor Pro Tem O’Neill to: “Direct the Planning Commission to identify opportunities to modify Chapters 20 and 21 of the Newport Beach Municipal Code to facilitate new visitor serving accommodation opportunities within the MU-W2 and MU-CV/15th Street zones for multi-unit residential developments with 20 or more residential units under common ownership. Consider as part of this review professional management, amenities, and where there are no parking impacts that could reduce the availability of parking in residential neighborhoods.” Discussion of doing this did not come back for action on a future Council agenda, as requested. So none of the Council members have had a chance to discuss or clarify what they might hope the Planning Commission would do. That would seem to explain the puzzlement when this “request” was previously presented to the Commission on June 22. Instead of scheduling the requested Council item for discussion and clarification of what a majority of the Council might want: 1. Staff seems to be asking the Commission, without that clarification, to initiate code amendments it deems appropriate for consideration on a future Council agenda; and 2. Staff seems to interpret the direction from Council to have been for the Commission to consider adding short-term lodging as an allowed use in the two “zones” designated, subject to unusual restrictions. An equally, or more, plausible guess would be that Mayor Tem O’Neill was hoping to get Council support for relaxing, in these two areas, the existing restrictions on timeshare uses, which are currently allowed, but limited to developments of 100 units or more with a management plan and on-site amenities, such as swimming pools, as well as a development agreement. Staff’s interpretation seems improbable to me for at least three reasons: 1. If the Council’s intent was to correct the inadvertent omission, when the Zoning Code was reorganized in 2010, of short-term lodging as an allowed use in mixed-use districts, then why would the correction be limited to these two mixed-use districts and not applied to the rest? Planning Commission - October 19, 2023 Item No. 3b - Additional Materials Received Municipal Code and LCP Amendments to Short Term Lodging (PA2023-0116) October 19, 2023, PC agenda Item 3 comments - Jim Mosher Page 2 of 3 2. Especially since the May 23 Council straw vote referred to “multi-unit residential developments with 20 or more residential units under common ownership,” why would someone (or a commercial entity) that owns scattered units in one of the two districts hat total to 20 or more be eligible for an STL permit while a person (or entity) that owns less would not? It seems completely arbitrary and discriminatory. Why would anyone believe such owners would be better or more conscientious operators of an STL than anyone else? 3. The Council’s mysterious request to post the matter for future discussion references Titles 20 and 21, but does not mention Title 5 even though revisions to it would be necessary to add STL permits as an option in the districts listed. Even if staff’s guess is correct that the Council wanted to “reinstate” STL permits as an allowed use in two mixed-use districts, I additionally don’t understand: 1. Why there would be separate limits and waiting lists for mixed-use versus non-mixed- use districts, or what rational basis there is for the numbers proposed? Wouldn’t it be easier to simply add these new areas to the existing pool of permits? As written, staff’s proposal would seem to allow 75 people to move to the front of the line, leaving those on the existing waiting list out in the cold, possibly for years. 2. Why existing STL permits in mixed-use areas would not be counted toward the citywide limits? (there was no such accommodation when the original limit was set) Specific comments: [It might be noted that the redline provided in the agenda packet shows only changes to tiny snippets of code proposed to be amended. Their merit and consequences are difficult to assess without seeing them in the full context of the regulations they would be amending.] Pages 14 and 30 (handwritten):  Section 2.1: “… a project is not subject to further review under CEQA if …”  Section 3.1 (near end): “In specific mixed-use zones larger scale (twenty (20) or more units) projects would be permitted to operate.” [?? – in addition to the grammatical problem, it is unclear what this is trying to say. The amendments do not require STL permits to be issued in groups of 20 or more on a site, but only that no one owning less than 20 units somewhere is eligible to have any permits] Pages 15, Section 4.2: “The Planning Commission hereby recommends to the City Council review the Code Amendment PA2023-0116 as set forth in Exhibit “A,” which is attached hereto and incorporated herein by reference.” [?] Pages 53ff: Why is “calendar” being removed from “calendar days” throughout the code? This seems to be leaving the code open to dispute as to whether it means “calendar” or “business” days. Page 54: Why is the definition of “person” being deleted? Page 56: Why is “G.” being deleted? Planning Commission - October 19, 2023 Item No. 3b - Additional Materials Received Municipal Code and LCP Amendments to Short Term Lodging (PA2023-0116) October 19, 2023, PC agenda Item 3 comments - Jim Mosher Page 3 of 3 Page 57:  In “B.” why would existing permits not count toward the limit?  In “C” only Sections 5.95.030(B) through (E) (not “F”) deal with abandonment.  “F” is less than clear that there would be two separate lists. Page 60: “Section 16: Section 5.95.065 5.95.080 (License and Permit Closure) of the Newport Beach Municipal Code is amended to read as follows:” Page 66, C.3: “No new permit shall be issued to anyone on the waiting list, as described in Section 5.95.042(D) 5.95.042(F), until the total number of permits does not exceed the seventy- five (75) limit.” Page 67, E.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 and is managed by the owner of the owner-occupied dwelling unit.” [It is presumably the rented dwelling unit that the owner must manage, not the owner’s own unit.]  “For purposes of this subsection, “managed by the owner” means that the owner is occupying and living at the property while it is being rented or a short-term use.” [I’m not sure any definition is necessary, but this proposed new one seems mis-written to me. Living on the property doesn’t ensure a person is managing another unit on the same property.] Page 68, F.1.d: “Demonstration that on-site amenities are provided to guests; and” [I don’t see anything suggesting what would qualify as an amenity. Hot water? A bed?] Planning Commission - October 19, 2023 Item No. 3b - Additional Materials Received Municipal Code and LCP Amendments to Short Term Lodging (PA2023-0116) From:Denys Oberman To:Planning Commission Cc:Jurjis, Seimone; Murillo, Jaime; City Clerk"s Office; BOB YANT; Fred Levine; joe@angelowhitelaw.com; Gary Cruz; Gina Cruz; dho@obermanassociates.com Subject:Follow up Date:October 20, 2023 1:54:34 PM [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Secretary Harris and Members of the Commission: Please include this correspondence in the public record, in connection with the discussion of Agenda item 3. At the Planning Commission yesterday evening, As relates to after acquired evidence we believe the following is important to your consideration and recommendations. 1. MU Cannery Village Area- This area, as designated by staff map at hearing, appears to have only one Owner of 20 units or greater, which is the project known as the Vue. ( There may be other pending projects which meet this threshold, but we were unable to find in the public domain). 2. There are significant issues associated with the current high concentration of ( permitted and unpermitted) Short Term Rentals , particularly in the greater Balboa Penninsula/West Newport zone. Therefore, it is critical for public health, safety and quality of life, that there be actual specific plan for : Reduction of Short Term Rentals in residential zones, concurrent with addition of STRs in Mus. Staff conceptual proposal was a start, but insufficient to ensure that there are NO additions of STR units putting the City beyond the maximum total number. The proposed Management Plan needs to be more thoroughly vetted to determine feasibility. In particular, the Parking Management proposal is not feasible . Parking needs to be accommodated On-site for STRs. There is already a serious shortage of parking for residents who live in the zone, around the school, and generally in the area at large. Much of the transit access has been eliminated on the Penninsula , compounding the burden . In this regard, we believe that the proposed Ordinance sections regarding Parking need to be reconstructed . 3. There was no opportunity provided to discuss the City’s regulatory and enforcement processes. The staff report indicated that the City’s current enforcement is, “ineffective”. That position should in no way be viewed as, a license for the City to Abandon Enforcement . If this is truly a conclusion to be adopted into policy, then the City must move to significantly reduce its number of STRs in residential zones---an over-concentration by any standard. Planning Commission - October 19, 2023 Item No. 3c - Additional Materials Received After the Meeting Municipal Code and LCP Amendments Related to Short Term Lodging (PA2023-0116) We recognize that the Commission had a long, exhaustive session with the Tennis club- related appeals and hearing, with its complexity of issues.Unfortunately, the numerous other residents that came with the intention of participating in Item 3 became discouraged with the several hours of waiting and ending up leaving. However, we encourage the Commission to provide for another opportunity for more diligent consideration and public hearing opportunity for this issue, which is of significant importance to our community, as well as the City. Thank you for your consideration, and your service. Denys H. Oberman Oceanfront resident snd community stakeholder Regards, Denys H. Oberman, CEO OBERMAN Strategy and Financial Advisors 19200 Von Karman Avenue, 6th Floor Irvine, CA 92612Tel (949) 476-0790Cell (949) 230-5868 Fax (949) 752-8935 Email: dho@obermanassociates.com CONFIDENTIALITY NOTICE: The documents accompanying this transmission contain confidential information belonging to the sender which is legally privileged. The information is intended only for the use of the individual or entity named above. If you arenot the intended recipient, you are hereby notified that any disclosure, copying, distribution or the taking of any action in relianceon the contents of this telecopied information is strictly prohibited. If you have received this transmission in error, please notify usimmediately at 949/476-0790 or the electronic address above, to arrange for the return of the document(s) to us. Planning Commission - October 19, 2023 Item No. 3c - Additional Materials Received After the Meeting Municipal Code and LCP Amendments Related to Short Term Lodging (PA2023-0116) CODE AND LCP AMENDMENTS RELATED TO SHORT TERM LODGING Planning Commission Public Hearing October 19, 2023 Planning Commission - October 19, 2023 Item No. 3d - Additional Materials Presented at the Meeting Municipal Code and LCP Amendments Related to Short Term Lodging (PA2023-0116) BACKGROUND 2 •Facilitate visitor accommodation opportunities in the MU-W2 and MU-CV/15th St mixed-use zoning districts •Considerations: •Applicability: 20 or more units under common ownership •Professional management •Amenities •No parking impacts to residential neighborhoods •Traditional hotels, motels, B&B, and timeshares allowed (CUP) •Short term lodging is missing opportunity •Directed staff to return with recommendations Planning Commission - October 19, 2023 Item No. 3d - Additional Materials Presented at the Meeting Municipal Code and LCP Amendments Related to Short Term Lodging (PA2023-0116) PROPOSED AMENDMENTS 3 •transient means 30 days or less•Short term lodging and bed & breakfast – revise for consistency •Inactive STL permits are closed•Revise allowed reinstatements: unlimited to one-time•Other minor clean up revisions Planning Commission - October 19, 2023 Item No. 3d - Additional Materials Presented at the Meeting Municipal Code and LCP Amendments Related to Short Term Lodging (PA2023-0116) APPROPRIATENESS OF MU ZONES 4 Planning Commission - October 19, 2023 Item No. 3d - Additional Materials Presented at the Meeting Municipal Code and LCP Amendments Related to Short Term Lodging (PA2023-0116) PROPOSED CHANGES FOR STL IN MIXED-USE ZONES 5 •MU-W2 and MU-CV/15th St: 75 permits •Residential Districts: 1,475 permits •Own 20 or more units in same •Compliance with operational standards and eligibility requirements •Demonstrate on-site amenities provided •Parking management Planning Commission - October 19, 2023 Item No. 3d - Additional Materials Presented at the Meeting Municipal Code and LCP Amendments Related to Short Term Lodging (PA2023-0116) RECOMMENDATION 6 Planning Commission - October 19, 2023 Item No. 3d - Additional Materials Presented at the Meeting Municipal Code and LCP Amendments Related to Short Term Lodging (PA2023-0116) 7 Jaime Murillo, Planning Manager 949-644-3209, jmurillo@newportbeachca.gov Planning Commission - October 19, 2023 Item No. 3d - Additional Materials Presented at the Meeting Municipal Code and LCP Amendments Related to Short Term Lodging (PA2023-0116)