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HomeMy WebLinkAboutSS3 - Update on Short Term Lodging - Amended PagesJune 11, 2019 Agenda Item No. SS3 Sections: Chapter 5.95 SHORT TERM LODGING PERMIT 5.95.005 Purpose and Findings. 5.95.010 Definitions. 5.95.020 Permit Required. 5.95.025 Agency. 5.95.030 Applicant for Permit. 5.95.035 Denial of Permit. 5.95.040 Filing Fee. 5.95.04459 Conditions. 5.95.050 Agentand Hosting Platform Responsibilities. - 5.95.055 Issuance of Administrative Subpoenas. 5.95.060 Violations/Penalties/Suspensions/Revocations. 5.95.065 Procedure for Imposition of Penalties/Revocation. 5.95.070 Permits and Fees Not Exclusive. Pe ,,.ice nFRAFt��@t�AR @.,a n,,RRPgt„ Pep ed c 99 QRQ G 95 non 5.95.005 Purpose and Findings. The City Council of the City of Newport Beach finds and declares as follows: A. An ever increasing number of tourists renting short term lodging units is severely escalating the demand for City services and creating adverse impacts in residential zones. B. Several thousand dwelling units within residential zones near the City's beaches and harbor are rented for less than thirty (30) days with the vast majority of those rentals occurring during the summer when the demand for parking and City services is greatest. C. Many of the occupants of short term lodging units are permanent; residents of areas distant from Newport Beach and the City has no effective way to prevent occupants from continuing to violate provisions of the Municipal Code and Penal Code relating to noise, disturbances and disorderly conduct. The only effective way to minimize the problems associated with occupancy of short term lodging units is to impose responsibility on the owner of the property, either personally or through an agent, to control the conduct of guests and occupants. D. Numerous incidents involving excessive noise, disorderly conduct, vandalism, overcrowding, traffic congestion, illegal vehicle parking and accumulation of refuse are directly related to short term lodging units which increasingly require response from police, fire, paramedic and other City services. E. The increase in demand for City services resulting from short term lodgings overburdens, and threatens, the City's ability to provide such services. F. Many short term lodgings are operated by agents and/or absentee owners who exercise little or no supervision or control of occupants. G. Problems with short term lodgings are particularly acute in residential districts where the peace, safety and general welfare of the long term residents are threatened. H. The restrictions of this chapter are necessary to prevent the continued burden on City services and adverse impacts on residential neighborhoods posed by short term lodgings. (Qpd. 92 ,a § a ,.,.£ 1992) 5.95.010 Definitions. For the purpose of this chapter, the following definitions shall apply: A. "Accessory dwellina unit" shall have the same definition as set forth in Chaoter 20.70. Title 20 B. "Agent or Broker" shall mean any person licensed by the California Department of Real Estate, 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 prospective transient user and an owner. D. "City Manager" shall mean the City Manager of the City of Newport Beach or his or her respective designee. A. Finance Director" shall mean the Finance Director of the City of Newport Beach or his or her designee. B. A— "Gross f€loor aArea(xess" a--f€or single -unit and two -unit dwellings -shall mean the #e4ewiaa-areas which includes +. t -The surrounding exterior walls: and 4--A any interior finished portion of a structure that is accessible and that measures more L. The six feet from finished floor to ceiling. C. Rte f^I q -shall hP. •••pec-c'EPI-Weml�.l..4 al. Stairwells and elevator shafts above the first level shall be excluded from the caluclation of gross floor area. D. "Home -sharing" shall mean an activity whereby the owner hosts a visitor or visitors, for compensation, for periods of less than thirty (30) days, during which time the owner of the unit lives on-site, in the unit, throughout the visitors' stay and the owner and visitor or visitors live together in the same unit as a single housekeeping unit. E. "Hosting platform" shall mean a person who participates in the short term lodging business by collecting or receiving a fee, directly or indirectly through an agent or intermediary, for conducting a booking transaction usina anv medium of facilitation F9. "Lodging unit" or "unit" shall mean a "dwelling unit" as that term is defined in Chapter 20.70, Title 20 of this Code of ^^.^^^^ 'i„in^ as a s n^'n housekeep R^ „nit An accessory dwelling unit shall not be considered a lodaina unit or unit for purposes of this chapter. SGS. "Owner” shall mean the person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit that is rented or leased on a short term basis pursuant to the provisions of this chapter. H. "Person" shall mean any natural person, joint venture, joint stock company, partnershipassociation, club, company, corporation, business trust, or organization of any kind. I. Residential district" shall mean those areas of the Citv so desianated by Title 20 of the Municipal Code S. Q. Short term" shall mean a lodging unit or unit that is rented or leased as a single housekeeping unit for a period of less than thirty (30) days^^^^^^"f^ ^ ^^'^^ ^ ^ �. This also includes home -sharing. A,hepe a FR@X FRUM ^f ^^^'•,.ittnn n .^' .nnt^' ^ not Wt nGIG n.. nit ^RGI q FPq GI n^ M the'nGIG n.. nit (li'F n^ the tn.m n£ K. "Single housekeeping unit" shall have the same definition as set forth in Chapter 20.70, Title 20. 5.95.020 Permit Required Noshall rent a lodging unit located within a residential district that R t for a short term without a valid short term lodging permit (permit) for that unit issued pursuant to this chapter. No permit shall be issued subsequent to June 1, 2004 to any dwelling unit on any parcel zoned for "Single-family Residential (R-1)" or is designated for 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 dwelling unit and was not subsequently revoked or closed pursuant to Section 5.95.075. /nra 2994 c s n 2994i nra m 49 s 9 (paFt) 4992) altered GlY.'Wli nn nit h@q not RAFP@qPGl in £Inn. @F @ by m n th@R O504. 5.95.025 Agency An owner may retain aaa °n^^^^ ea4 ^^t^t^ ^genu•e^'^'ve to comply with the requirements of this chapter, including, without limitation, the filing of an application for a permit, the management of the short term lodging unit or units, and the compliance with the conditions to the permit. The permit shall be issued only to the owner of the short term lodging unit or units. The owner of the short term lodging unit or units is responsible for compliance with the provisions of this chapter and the failure of an agent to comply with this chapter shall be deemed non-compliance by the owner. ((DF -I. oo ,a § a papt 1992) 5.95.030 Applicant for An application for a permit shall be filed with the Finance Director upon forms provided by the City and shall contain the following information: A. The name, address and telephone number of the owner of the unit for which the permit is to be issued. B. The name, address and telephone number of the agent, if any, of owner of the unit. C. Evidence of a valid business license issued by the City for the separate business of operating short term lodgings. D. E„u,.. G, The Floor Area of a va!a tFaRS eRt G Peg stpatG eI4f Gate ssued by the ra„ f9p the lodging unit and number of bedrooms. E. Acknowledgement of receipt and inspection of a copy of all regulations pertaining to the operation of a short term lodging unit. F. Such other information as the Finance Director deems reasonably necessary to administer this chapter. 5.95.035 Denial of Permit. No application for an eligible unit shall be denied unless a short term lodging permit for the same unit and issued to the same owner has n revoked pursuant to Section 5.95.065 of this chapter. ((Drd. °� a '�a ir,. 2 5.95.040 Filina Fee. AaAn application or renewal application for a short term lodging permit shall be accompanied by a fee established by resolution of the City Council, provided, however, the fee shall be no greater than necessary to defer the cost incurred by the City in administering the provisions of this chapter. '^•'. 92 19 § 9 (pa Ft` 4992` Conditions. A. All permits issued pursuant to this chapter are subject to the following standard conditions: 1. The owner shall, by written or oral agreement, limit overnight, occupancy of the short term lodging unit to a specific number of occupants, with the number of occupants not to exceed that permitted by the provisions of Title 15 of the Newport Beach Municipal Code 2. The owner shall use best efforts to R66::eensure that the occupants and/or guests of the short term lodging unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions of this Ceode or any State Law pertaining to noise, disorderly conduct, the consumption of alcohol, or the use of illegal drugs. 3. The owner shall, upon notification that occupants and/or guests of his or her short term lodging unit have created unreasonable noise or disturbances, engaged in disorderly conduct or committed violations of this Ceode or State Law pertaining to noise, disorderly conduct, the consumption of alcohol or the use of illegal drugs, promptly use best efforts to prevent a recurrence of such conduct by those occupants or guests. 4. The owner of the short term lodging unit shall use best efforts to . 61 eensure compliance with all the provisions of Title 6 of the Municipal Code (garbage, refuse and cuttings). 5. The owner of the short term lodging unit shall post a copy of the permit and a copy of the conditions set forth in this section in a conspicuous place within the unit. The notice shall contain the following: a. The name of the local contact person and phone number at which that person may be reached on a twnety-four (24) hour basis. The local person must be located within twenty-five (25) miles of the unit. b. The number and location of on-site parking spaces. C. The date and location for on -street parking affected by street sweepers. d. The trash pickup day for the unit and notification ofthesr+creetMaacipa�ode rules and regulations concerning the storage and placement of trash containers. e. Notification that the occupant/guest is responsible for all activities occurring on the property and that the occupant(s)/quest(s) may be cited and fined for creating a disturbance or violating any provision of the Maa ea�Code. 6. With respect to any short term lodging unit that is located in any Safety Enhancement Zone, the owner of the unit and any agent retained by the owner shall take immediate action during the period that the Safety Enhancement Zone is in effect to prevent occupants or guests from engaging in disorderly conduct or committing violations of this Ceode or State Law pertaining to noise, disorderly conduct, the consumption of alcohol or the use of illegal drugs. 7. The owner. R AAAF(j .,, t AR • IR aRY aPPRt A• hRgt;R 014#G•m shall collect and remit transient occupancy tax and visitor service fee to the City and otherwise comply with all transient occupancy tax and visitor service fee requirements, as set forth in Chapters 3.16 and 3.28. 8. If the owner uses an agent or hosting platform to collect and remit transient occupancy tax and the visitor service fee, the owner shall coordinate with the aqent or hostinq platform to ensure that the agent or hosting platform collects and remits the transient occupancy tax and the visitor service fee to the City pursuant to the requirements set forth in Chapters 3.16 and 3.28. 99. The owner shall provide the City with the name and twenty-four (24)- hour phone number of a local contact person (as defined as a person residing within twenty-five (25) miles of the property) who shall ensure compliance with this Chapter in a timely manner. The owner or agent must provide a new local contact person and his or her phone number within five (5) business days of a change in the local contact person. 104. The owner shall ensure that all available parking spaces onsite, which may include garage, carport, and driveway spaces, and tandem parking are available for the occupants)/quests of the short term lodging unit. For units which do not have on-site parking available and only on street parking is available shall limit the number of vehicles to a maximum of two (2) vehicles per unit. 119. The owner shall maintain a valid business license and short term lodging permit when engaging in short term lodging. 124-. The 9owner44wsshallt include the City issued short term lodging permit number and the applicable transient occupancy tax percentage on all advertisements. 13-2. The owner shall ensure thatA a permitted short term lodging unit is shall only be -used for residential purposes and not used—Ali fornon-residential uses, including but not limited to large commercial or non-commercial gatherings, commercial filming and/oraadnon-owner wedding receptions. aFP qtF At" ^'^I'h''^'' 14-2. The owner shall ensure that noNe-amplified sound or reproduced s^4^ 4a" ee^is used outside or audible from the property line between the hours of 10:00 p.m. andte 10:00 a.m. B. The City Manager shall have the authority to impose additional standard conditions, applicable to all short term lodging units, as necessary to achieve the objectives of this chapter. C. The City Manager shall have the authority to impose additional conditions on any permit in the event of any violation of the conditions to the permit or the provisions of this chapter subject to compliance with the procedures specified in Section 5.95.065. (Ord. 2003-5 § 10, 2003: Ord. 92-13 § 3 (part), 1992) 5.95.0505 Agent and Hosting Platform Responsibilities A. Agents and hosting platforms shall disclose, at the City's request, a short term lodging listing of all roperties they represent and or advertise. The listing shall include: 1. The name. mailing address and phone of the person responsible for each such listin 2. The address of each such listing. 3. The length of stay for each such listing. 4. The price paid for each such listing. B. Agents and hosting platforms, at the C t••'` FeGiupgt shall be responsible for tFaRS eRt ^^^61^aRGY t@X^g @^G' remitting any transient occupancy tax or visitor service fee collected by the hosting platform or agent 'l+�o the City in accordance with Chapters 3.16 and 3.28. r�,�•.t,..� �c C. Agents and hosting platforms shall not complete any booking transaction for any short term lodging unit unless the unit has obtained and holds a valid business license and short term lodging permit from the City, at the time the agent and or hosting platform receives a fee for the booking transaction. D. Agents and hosting platforms shall not collect or receive a fee, directly or indirectly for facilitating or providing services ancillary to an unpermitted short term lodging unit including, but not limited to, insurance, concierge services, catering, restaurant bookings, tours, guide services, entertainment, cleaning, property management-, or maintenance of the short term lodging unit. E caf 14a*hor A hosting platform operating exclusively on the Internet, which operates in compliance with subsection (A) (B) (C) and (D) above, shall be presumed to be in compliance with this Chapter, except that the hosting platform remains responsible for compliance with the administrative subpoena provisions of this Chapter. F. The provisions of the Section shall be interpreted in accordance with otherwise applicable Estate and federal law(s) and will not apply if determined by the City to be in violation of, or preempted by, such law(s). 5.95.055 Issuance of Administrative Subooenas The City Manager, or his or her designee, 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 days from the date of service. A person that has been served with an administrative subpoena may seek judicial review during that thirty -day period. 5.95.060 Violations/Penalties/Revocation A. Violations. Except as provided in subsections (C) a444 -through (EB) of this section, the following conduct shall constitute a violation for which the penalties specified in subsection (B) of this section may be imposed, or the permit if, any suspended or revoked: 1. The person has violated Section 5.95.020; 2. The owner rents or leases the unit while the short term lodging permit is suspended: 3. The owner has failed to comply with the standard conditions specified in Section 5.95.045&9(A), 4-2. The owner has failed to comply with conditions imposed by the City Manager pursuant to the provisions of Section 5.95.04554(B) or (C), 54. The owner has willfully violated the provisions of this chapter, eF 64. The owner has failed to pay the transient occupancy tax or visitor service fee as required by Chapters 3.16 and 3.28 of this Code;:or 7. The owner or the agent or hosting platform retained by the owner has failed to comply with Section 5.95.050 or 5.95.055. B. Penalties. Except as provided in subsections (C) through (E). the penalties for violations specified in subsection (A) -of this section shall be as follows: 1. A violation of subsection (A)(1) is punishable as provided in Chapter 1.04 and (D)Chapter 1.05 of the Code. 2. A violation of subsection (A)(2) is punishable by revocation of the permit. 3. A violation of subsection (A)(3)47) is punishable as follows: (a) For the first violation within any twelve (12) month period, the penalty shall range from a notice of violation to a fine not to exceed two hundred and fifty dollars ($250.00); 5b]2-.- For a second violation within any twelve (12) month period, the penalty shall range from a fine not to exceed five hundred dollars ($500.00) to revocation of the permit, (c) For a third violation within any twelve (12) month period, the penalty shall range from a fine not to exceed one thousand dollars ($1,000.00) to and suspension cereseFieFrof the permit for a period of one (1) year, and fg�4- For a fourth violation within any twelve (12) month period, the permit shall be revoked in accordance with the provisions of Section 5.95.065. C. Safety Enhancement Zone. In the case of a short term lodging permit for a dwelling that is located in a Safety Enhancement Zone, the penalty for the failure to comply with any standard condition during the period that the Safety Enhancement Zone is in effect shall be a fine of one thousand dollars ($1,000.00) and/or suspensioncevesai AR of the permit for a period not less than sixty (60) days nor more than one (1) year. D. Suspended License — Provisional Period. If an owner violates subsections (A)(3)-(7) within six (6) months after a short term lodging permit being restated after a suspension, the permit shall be revoked in accordance with the provisions of Section 5.95.065. ES. Revocation for Loud or Unruly Gathering. If a lodging unit that is subject to a short term lodging permit has been the location of twobcee or more loud or unruly gatherings, as defined in Chapter 10.66 of this Code, while the lodging unit was occupied on a short term basis within any twenty-four (24) month period, the permit shall be revoked. 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 three or more loud or unruly gatherings required to revoke a short term lodging permit. 5.95.065 Procedure for Imposition of Penalties/Suspensions/Revocation. Penalties, including a notice of violation, shall be imposed, and permits shall be suspended/revoked, only in the manner provided in this section. A. --The Finance Director, or designee, shall conduct an investigation whenever he or she has reason to believe that an owner has committed a violation described in Section 5.95.060(A), (C) through eF(ES). Should the investigation reveal substantial evidence to support a finding that a violation occurred, the Finance Director shall issue written notice of intention to impose a penalty, suspend and/or revoke the permit. The written notice shall be served on the owner, shall specify the facts which, in the opinion of the Finance Director, constitute substantial evidence to establish grounds for imposition of the penalties, suspension and/or revocation, and specify that the penalties will be imposed and/or the permit will be suspended and/or revoked within thirty (30) days from the date the notice is given, unless the owner ^^�'a a/GF epe2.tefiles, Wth the ''ity (;'eF'( ^^d before the penalties, suspension and/or revocation becomes effective, a request for hearing before t4ebra Hearing Officer. B. --If the owner requests a hearing within the time specified in subsection (A) of this section, the 4;4 61e*Finance Director, or designee, shall serve written notice on the owner, by written mail, of the date, time and 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 Qty (;Ie.l, The Qty Manage. aRayFinance Director, or designee. A Hearing Officer will preside over the hearing n. mn„ deninnnte a hen.inn e#icecte, take evidence and submit proposed findings and recommendations to the City Manager. The City Manager shall impose the penalties, suspend and/or revoke the permit only upon a finding that a violation has been proven by a preponderance of the evidence, and that the penalty, suspension or revocation is consistent with the provisions of Section 5.95.060(B), (C) QF- hrough (EB). The hearing shall be conducted according to the rules normally applicable to administrative hearings. The City Manager shall render a decision within thirty (30) days of the hearing and the decision shall be final. (Qpd. 2911 1� § o n^4 2911 n., 92 1 n^.+ C. If a short term lodaina permit is suspended or revoked of£enti'ie en the r en4La Clay f.em the (late e£ netine 14 it shall be the owner's responsibility to vacate any future bookings during the term of the suspension. D. After anv suspension. -Tthe owner may reapply for reinstatement of 4at�the short term lodging permit which shall be processed in accordance with Section 5.95.030, provided the owner has paid the City all amounts owed the City in accordance with Chapter 3.16 and 3.28 of this Code hP Re FAR FP 4haR .. .a. 4n nBYeF n.,4., n£ ...nen.,., i.... and i.. n.,4i Pat n.. The R a' .. iAd .,ha"'aP4 £n. e£ r X FRARthq. (leen the Cty has n n£vme„I 4Lae.e q Re A'-,tqtaRGIi n^ a nlati A. e..IeLde a ,n(I 4e 4L• ity the she.4 teem In(Iei nen mit w 11 be . qt ated M aR n4ivn a ali(I eatable Shp ld thautpmat a eL.Min n hi . eLenl effentiyp. rRrRe.li atel 5.95.070 Permits and Fees Not Exclusive. Permits and fees required by this chapter shall be in addition to any license, permit or fee required under any other chapter of this Code. The issuance of any permit pursuant to this chapter shall not relieve the owner of the obligation to comply with all other provisions of this Code pertaining to the use and occupancy of the lodging unit or the property on which it is located. ((94 92 ^' §' (pa Ft) 4992` 5.95.075 License and Permit Closure. A. Any owner which 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 and business license shall be closed. The City will send a final transient occupancy tax bill which will be due and payable 30 days from the date of the invoice. B. The Finance Director shall close any permit that has no short term lodging activity for a period of two consecutive years by remitting zero dollars on the required transient occupancy tax forms and or has failed to return the transient occupancv form C. Any dwelling unit on any parcel zoned for "Single-family Residential (R-1)" or is designated for single- family residential use as part of a Planned Community Development Plan, Specific Area Plan or Planned Residential District that has a short term lodging permit issued on or before June 1, 2004, that is demolished, remodeled, altered, or rebuilt after January 1. 2020, shall have its short term lodging permit closed by the Finance Director if the new, remodeled or altered dwelling unit has increased in gross floor area by more than 25%.