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HomeMy WebLinkAbout01 - Staff ReportQ SEW Pp�T CITY OF z NEWPORT BEACH City Council Staff Report April 3, 2020 Agenda Item No. 1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov PREPARED BY: Seimone Jurjis, Community Development Director PHONE: 949-644-3282 TITLE: Emergency Ordinance No. 2020-001: Prohibiting the Issuance of Any New Short -Term Lodging Permit and/or the Rental of a Lodging Unit for a Short -Term, to Any Person, Except a Medical Professional or Emergency Responder ABSTRACT: For City Council's consideration is a temporary ban on the issuance of any new short term lodging permit and/or the rental of any lodging unit, for less than 30 consecutive days, to any person other than a medical professional or emergency responder during the COVID- 19 emergency. RECOMMENDATION: a) Find this action exempt from the California Environmental Quality Act ("CEQA") pursuant to Sections 15269(c) (the activity is necessary to prevent or mitigate an emergency), 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; and b) Pursuant to City of Newport Beach Charter Section 412, Adopt Emergency Ordinance No. 2020-001, An Ordinance of the City Council of the City of Newport Beach, California, Prohibiting. (1) the Issuance of any New Short -Term Lodging Permit Pursuant to Newport Beach Municipal Code Chapter 5.95, and/or (2) the Rental of a Lodging Unit, for a Period of Thirty (30) Consecutive Days or Less to Any Person, Except a Medical Professional or Emergency Responder Coming to the City of Newport Beach to Aid with the COVID-19 Outbreak. FUNDING REQUIREMENTS: The City collects Transient Occupancy Tax on all short-term rentals. This revenue will be reduced during the prohibition period. 1-1 Emergency Ordinance No. 2020-001: Prohibiting the Issuance of Any New Short -Term Lodging Permit and/or the Rental of a Lodging Unit, for a Short -Term, to Any Person Other than a Medical Professional or Emergency Responder April 3, 2020 Page 2 Short-term lodging (STL) is the rental of residential units for 30 consecutive days or less. The rental of residential units for short-term use is prevalent in Newport Beach with 1,545 active STL permits. These units are concentrated in densely populated residential districts of the City, which has resulted in renters living closely next to residents. With the worldwide outbreak of COVID-19, a State of Emergency has been declared at the federal, state and City levels to combat this global pandemic. Of particular concern is that COVID-19 appears to transmit easily, especially in group settings, and slowing the spread is crucial to protect the ability of healthcare provides to handle the influx of new patients and safeguard public health and safety. Therefore, the Governor's Stay at Home order, which directs all individuals in the State to stay home except for essential functions, is especially critical. In this environment, continuous turnover of renters in STL units creates a risk that COVID-19 will spread throughout the City, especially given the high number of STL units and the dense residential neighborhoods where they are located. To ensure the health and safety of the community and members of the public, and to help the slow the spread of COVID-19, staff has drafted the attached emergency ordinance to prohibit the issuance of any new short-term lodging permits and prohibit STL activity during the term of the emergency. Any renter currently occupying a STL unit would be allowed to continue to occupy a STL unit, but must end occupancy on or before April 10, 2020. In case hotel or motels have temporarily closed during the pandemic, a STL unit may be necessary to house medical professionals or emergency responders that have been called in to support doctors, hospitals or emergency agencies. The ordinance exempts the ban on STL activity for those units that are rented to the medical professional or emergency responder if the property holds a valid STL permit. ENVIRONMENTAL REVIEW: Find this action exempt from the California Environmental Quality Act ("CEQA") pursuant to Sections 15269(c) (the activity is necessary to prevent or mitigate an emergency), 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (24 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Emergency Ordinance No. 2020-01 Attachment B — Correspondence 1-2