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HomeMy WebLinkAbout17 - Review and Consider Extending the Prohibition on Short -Term Lodging ActivityTO: FROM: CITY OF NEWPORT BEACH City Council Staff Report May 12, 2020 Agenda Item No. 17 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov PREPARED BY: Seimone Jurjis, Community Development Director, sjurjis@newportbeachca.gov PHONE: 949-644-3282 Emergency Ordinance Nos. 2020-003 and 2020-004: Review and TITLE: Consider Extending the Prohibition on Short -Term Lodging Activity ABSTRACT: For City Council's consideration is a review of Emergency Ordinance 2020-1 adopted on April 3, 2020 prohibiting short-term lodging ("STL") activity until May 20, 2020 or sooner due to the outbreak of COVID-19. As alternatives, the City Council may want to consider two other emergency ordinances for possible adoption: 1) extending the prohibition of renting a STL unit beyond May 20, 2020 to a date agreed upon by the City Council; or 2) allow the rental of STL units for a minimum number of consecutive nights set by the City Council. Exceptions would continue to be provided for medical professionals or emergency responders coming to aid with the COVID-19 outbreak. RECOMMENDATION: a) Find this action exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15269(c) (the activity is necessary to prevent or mitigate an emergency), Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; and b) Review the current status of Emergency Ordinance No. 2020-001 and take no further action, allowing the Emergency Ordinance to expire on May 20, 2020 or sooner; or c) Pursuant to City of Newport Beach Charter Section 412, waive full reading, direct the City Clerk to read by title only, and adopt Emergency Ordinance No. 2020-003, An Emergency Ordinance of the City Council of the City of Newport Beach, California, Extending the Restrictions Set Forth in Emergency Ordinance No. 2020-1 Prohibiting.- (1) rohibiting.(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 Any Lodging Unit, for a Period of Thirty (30) Consecutive Days or Less, to Any Person Other than a Medical Professional or Emergency Responder Coming to the City of Newport Beach to Aid with the COVID-19 Outbreak; or 17-1 Emergency Ordinance No. 2020-003: Review and Consider Extending the Prohibition on Short -Term Lodging Activity May 12, 2020 Page 2 d) Pursuant to City of Newport Beach Charter Section 412, waive full reading, direct the City Clerk to read by title only, and adopt Emergency Ordinance No. 2020-004, An Emergency Ordinance of the City Council of the City of Newport Beach, California, Extending the Restriction Set Forth in Emergency Ordinance No. 2020-001 Prohibiting the Issuance of Any New Short Term Lodging Permit Pursuant to Newport Beach Municipal Code Chapter 5.95 and Requiring a Minimum Night Stay for All Short Term Lodging Rentals. FUNDING REQUIREMENTS: The City collects Transient Occupancy Tax on all short-term rentals. This General Fund revenue will be reduced during the prohibition period. DISCUSSION: On April 3, 2020 the City Council adopted Emergency Ordinance No. 2020-1 (Attachment A) restricting STL permitting and activity to renting of residential units for 30 days or less. Renting a unit for more than 30 days is allowed and not prohibited by the emergency ordinance. In case hotel or motels have temporarily closed during the pandemic, an 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 emergency ordinance exempts the ban on STL activity for those units that are rented to the medical professionals or emergency responders if the property holds a valid STL permit. The basis for adopting the emergency ordinance was the continuous turnover of renters in STL units, which creates a risk that COVID-19 will spread throughout the City, especially given the high number of STL units and the dense residential neighborhoods they are in. To date the City has 1,530 active short-term lodging permits. FnfnrcPment Since the emergency ordinance went into effect, the Code Enforcement and Revenue Divisions are proactively enforcing the prohibition. Staff notified all the STL permit holders that an emergency ordinance was adopted and in effect. Staff also notified the two larger internet platforms, Expedia Group (owner of Vrbo) and Airbnb of the emergency ordinance. Both platforms responded that they notified their users of the prohibition. Staff also reviewed the postings on the internet platforms and communicated directly through the platform with each individual advertising their unit, that renting STL units for 30 days or less is prohibited. Many responded back that they were blocking any reservations during the ban, while others continued to advertise their unit as available for medical personnel and emergency responders. 17-2 Emergency Ordinance No. 2020-003: Review and Consider Extending the Prohibition on Short -Term Lodging Activity May 12, 2020 Page 3 At the time this staff report was written, Code Enforcement staff received 65 complaints on alleged violations of the emergency ordinance. Of the complaints investigated, staff confirmed 11 violations. Each property owner in violation of the emergency ordinance received a $1,000 fine as per the emergency ordinance. One property owner has violated the ban on four different occasions. Therefore, their STL permit is subject to revocation through an administrative hearing. Other Possible Options to Consider The City Council may want to consider two other options. The first option for the City Council's consideration is adopting Emergency Ordinance 2020-003 (Attachment B). This emergency ordinance is very similar to the first emergency ordinance adopted by the City Council, but it extends the expiration of prohibition to a date beyond May 20, 2020. If the City Council decides to adopt this emergency ordinance, then staff requests the City Council provide a specific date that the emergency ordinance will expire. The second option for the City Council to consider is adopting Emergency Ordinance 2020-004 (Attachment C). This emergency ordinance allows the renting of STL units for a minimum number of consecutive nights set by the City Council. For example: If the City Council decides that the minimum number is four consecutive nights, then it would be a violation of the emergency ordinance to rent the STL unit for three or less consecutive nights. The purpose of establishing a minimum night stay is to discourage and prevent a rapid turnover of persons occupying STL units, which are interwoven throughout the residential districts. This emergency ordinance continues to ban the issuance of any new STL permits. Staff believe there are already many STL permits in the City, and there is no need to allow further expansion of the STL permit program while the City is in a declared emergency. Both proposed emergency ordinances continue to allow a medical professional or emergency responder to rent an STL unit for any length of time. If any of the two emergencies ordinances are adopted they shall become effective immediately and continue until: (a) a date agreed upon by the City Council; (b) the State of Emergency is terminated; (c) the City's local emergency is terminated by the City Council; or (d) the emergency ordinance is repealed. Ad Hoc Committee on Short Term Lodaina A City Council formed ad hoc committee for short term lodging has been reviewing the City's current municipal code regulations. The goal of the ad hoc committee is to return to the City Council with recommendations for potential changes to the City's municipal code that will assist both residents and operators of STL units. The committee intends to return on May 26, 2020 with municipal code recommendations that will affect the internet platform activity. The committee will then return later in the summer with broader recommendations and changes that will affect how STLs operate. 17-3 Emergency Ordinance No. 2020-003: Review and Consider Extending the Prohibition on Short -Term Lodging Activity May 12, 2020 Page 4 ENVIRONMENTAL REVIEW: Find this action exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15269(c) (the activity is necessary to prevent or mitigate an emergency), Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 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. 2020-001 Attachment B — Emergency Ordinance No. 2020-003 Attachment C — Emergency Ordinance No. 2020-004 17-4 I_rILffiflai!i1=1LNk&I EMERGENCY ORDINANCE NO. 2020-1 AN EMERGENCY 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 ANY LODGING UNIT, FOR A PERIOD OF THIRTY (30) CONSECUTIVE DAYS OR LESS, TO ANY PERSON OTHER THAN A MEDICAL PROFESSIONAL OR EMERGENCY RESPONDER COMING TO THE CITY OF NEWPORT BEACH TO AID WITH THE COVID-19 OUTBREAK WHEREAS, Section 200 of the Charter of the City of Newport Beach ("City") vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, on January 31, 2020, the United States Secretary of Health and Human Services announced a nationwide public health emergency, in response to the COVID-19 outbreak; WHEREAS, on March 4, 2020, Governor Gavin Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for broader spread of COVID-19 ("State of Emergency); WHEREAS, on March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic; WHEREAS, on March 15, 2020, Governor Newsom called for all bars, wineries, nightclubs and brewpubs to close throughout the state, urged all seniors and people with chronic health conditions to isolate themselves at home, and for restaurants to reduce occupancy by half to keep people farther away from each other; WHEREAS, on March 15, 2020, in response to the COVID-19 outbreak, Newport Beach City Manager Grace Leung, who is the Director of Emergency Services ("Director of Emergency Services") for the City, issued a Proclamation of Local Emergency ("Proclamation"); WHEREAS, on March 18, 2020, the Newport Beach City Council ratified the Proclamation and authorized the Director of Emergency Services to take certain actions to protect the health, safety, and welfare of the public; 17-5 Emergency Ordinance No. 2020-1 Page 2 of 5 WHEREAS, on March 19, 2020, Governor Newsom issued Executive Order N-33- 20, requiring all individuals living in the State of California to stay home or at their place of residence, except as needed to maintain continuity of operations of the federal critical infrastructure sectors ("Stay at Home Order"); WHEREAS, on March 19, 2020 the Federal Cybersecurity and Infrastructure Security Agency issued guidance identifying 14 critical infrastructure sectors whose workers provide services and functions that are essential to support a strong response to the COVID-19 outbreak; WHEREAS, on March 29, 2020, President Donald Trump announced that he would be extending the social distancing guidelines through April 30, 2020; WHEREAS, COVID-19 has been detected in hundreds of thousands of people worldwide, including, as of April 2, 2020, 60 cases in the City, and is primarily spread from person to person; WHEREAS, COVID-19 is easily transmitted, especially in group settings, and it is essential that the spread of the virus be slowed to protect the ability of public and private health care providers to handle the influx of new patients and safeguard public health and safety; WHEREAS, this worldwide outbreak of COVID-19 is emerging and rapidly evolving; WHEREAS, since the declaration of the State of Emergency, issuance of the Proclamation and issuance of the Stay at Home Order, owners of lodging units in the City of Newport Beach have continued to rent lodging units for short durations; WHEREAS, the rental of lodging units for a short term jeopardizes the health, safety, and welfare of the public and residents of the City because: (a) there are over 1,500 lodging units in the City that have short term lodging permits; (b) the short term lodging units, which have permits, are interwoven throughout the City's residential districts; (c) the Stay at Home Order provides that " ... all individuals living in the State of California [are] to stay home or at their place of residence, except as needed to maintain continuity of operations of the federal critical infrastructure"; and (d) the continuous turnover of persons occupying short term lodging units, which are interwoven throughout the residential districts, creates a risk that COVID-19 will spread throughout the City and beyond; WHEREAS, Charter Section 412 provides that an ordinance necessary to preserve the public peace, health or safety, may be introduced and adopted at one and the same meeting if passed by at least five affirmative votes; and 17-6 Emergency Ordinance No. 2020-1 Page 3 of 5 WHEREAS, this emergency ordinance is necessary to limit the spread of COVID- 19 and is the least restrictive way to help ensure that the health, safety, and welfare of the public is protected. NOW, THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council for the City of Newport Beach hereby finds and declares that this emergency ordinance is necessary to limit the spread of COVID-19 and to protect the health, safety and welfare of the public including, but not limited to, the residents of the City of Newport Beach because there are over 1,500 short term lodging units in the City of Newport Beach, which are interwoven throughout the residential districts, and the continuous turnover of occupants at these short term lodging units creates a risk that COVID-19 will spread throughout Newport Beach and beyond. Section 2: As long as this emergency ordinance is in effect, no new permit for a short term lodging unit, which permit is required prior to renting a lodging unit on a short term basis by Chapter 5.95 of the Newport Beach Municipal Code ("NBMC), shall be issued by the City of Newport Beach. For purposes of this emergency ordinance, the definition of: (a) "short term" shall have the same meaning as Section 5.95.010 (C) of the NBMC; and the definition of "lodging unit" shall have the same meaning as Section 5.95.010 (A) of the NBMC. Section 3: As long as this emergency ordinance is in effect or until May 20, 2020, whichever occurs first, it shall be unlawful for any owner, as defined in Section 5.95.010 (B) of the NBMC, or agent of an owner, to rent, let, advertise for rent, or enter into an agreement for the rental of any lodging unit, where the occupancy would take place during the time period the emergency is in effect, for a short term. Nothing in this section shall be construed, however, to bar or preclude an existing permit holder from renting a lodging unit for a short term to a medical professional or emergency responder coming to the City of Newport Beach to aid with the COVID-19 outbreak. The owner of the short-term lodging unit or units is responsible for compliance with the provisions of this section and the failure of an agent, or any other person or entity to comply with this section shall be deemed non-compliance by the owner. Section 4: Any person currently occupying a lodging unit for a short term may continue such occupancy. 17-7 Emergency Ordinance No. 2020-1 Page 4 of 5 Section 5: A first violation of this emergency ordinance shall be enforceable in accordance with Chapter 1.05 of the NBMC and the fine shall be one thousand dollars. A second violation of this emergency ordinance, as determined by a hearing officer in accordance with Chapter 1.05 of the NBMC, shall be punishable by the suspension of the short term lodging permit for one year from the date of decision by the hearing officer. A third violation of this emergency ordinance, as determined by a hearing officer in accordance with Chapter 1.05 of the NBMC, shall be punishable by the revocation of the short term lodging permit, and the short term lodging permit holder shall not be eligible to reapply for a short term lodging permit for one year. Section 6: The City Manager shall take any and all action to ensure that this emergency ordinance and the provisions contained herein are given widespread publicity. Section 7: The City Manager and Director of Emergency Services is hereby authorized to issue orders and regulations and take such other actions as may be necessary or appropriate to respond to the COVID-19 outbreak. Section 8 The recitals provided in this emergency ordinance are true and correct and are incorporated into the substantive portion of this emergency ordinance. Section 9: If any section, subsection, sentence, clause or phrase of this emergency ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this emergency ordinance. The City Council hereby declares that it would have passed this emergency ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 10: The City Council finds and determines that the introduction and adoption of this emergency ordinance is not subject to 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. 17-8 Emergency Ordinance No. 2020-1 Page 5 of 5 Section 11: This emergency ordinance shall become effective upon its adoption and shall continue in full force and effect until: (a) May 20, 2020; (b) the State of Emergency is terminated by proclamation of the Governor of California; (c) the local emergency proclaimed on March 15, 2020 and ratified by the City Council on March 18, 2020, is terminated by proclamation of the City Council; or (d) such time as this emergency ordinance is repealed in whole, or in part, by the City Council. Section 12: The Mayor shall sign, and the City Clerk shall attest to the passage of this emergency ordinance. The City Clerk shall cause the emergency ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This emergency ordinance was introduced and adopted at a special meeting of the City Council of the City of Newport Beach held on the 3rd day of April 2020, by the following vote, to -wit: AYES: Mayor Will O'Neill, Mavor Pro Tem Bra Avery, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council ber Jeff Herdman NAYS: None ABSENT: Council Member Kevin Muldoon ATTEST: � r LEILANI I. BROWN, bTY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE A ON C. HARP, OTY ATTORNEY 7 WILL O'NEILL, MAYOR Q t, FO RSI 17-9 ATTACHMENT B EMERGENCY ORDINANCE NO. 2020-003 AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, EXTENDING THE RESTRICTIONS SET FORTH IN EMERGENCY ORDINANCE NO. 2020-1 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 ANY LODGING UNIT, FOR A PERIOD OF THIRTY (30) CONSECUTIVE DAYS OR LESS, TO ANY PERSON OTHER THAN A MEDICAL PROFESSIONAL OR EMERGENCY RESPONDER COMING TO THE CITY OF NEWPORT BEACH TO AID WITH THE COVID-19 OUTBREAK WHEREAS, Section 200 of the Charter of the City of Newport Beach ("City") vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, on January 31, 2020, the United States Secretary of Health and Human Services announced a nationwide public health emergency, in response to the COVID-19 outbreak; WHEREAS, on March 4, 2020, Governor Gavin Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for broader spread of COVID-19 ("State of Emergency); WHEREAS, on March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic; WHEREAS, on March 15, 2020, Governor Newsom called for all bars, wineries, nightclubs and brewpubs to close throughout the state, urged all seniors and people with chronic health conditions to isolate themselves at home, and for restaurants to reduce occupancy by half to keep people farther away from each other; WHEREAS, on March 15, 2020, in response to the COVID-19 outbreak, Newport Beach City Manager Grace Leung, who is the Director of Emergency Services ("Director of Emergency Services") for the City, issued a Proclamation of Local Emergency ("Proclamation"); 17-11 Emergency Ordinance No. 2020-003 Page 2 of 6 WHEREAS, on March 18, 2020, the Newport Beach City Council ratified the Proclamation and authorized the Director of Emergency Services to take certain actions to protect the health, safety, and welfare of the public; WHEREAS, on March 19, 2020, Governor Newsom issued Executive Order N-33- 20, requiring all individuals living in the State of California to stay home or at their place of residence, except as needed to maintain continuity of operations of the federal critical infrastructure sectors ("Stay at Home Order"); WHEREAS, on March 19, 2020 the Federal Cybersecurity and Infrastructure Security Agency issued guidance identifying 14 critical infrastructure sectors whose workers provide services and functions that are essential to support a strong response to the COVID-19 outbreak; WHEREAS, COVID-19 has been detected in millions of people worldwide, including, as of April 30, 2020, 97 cases in the City, and is primarily spread from person to person; WHEREAS, COVID-19 is easily transmitted, especially in group settings, and it is essential that the spread of the virus be slowed to protect the ability of public and private health care providers to handle the influx of new patients and safeguard public health and safety; WHEREAS, this worldwide outbreak of COVID-19 is emerging and rapidly evolving; WHEREAS, since the declaration of the State of Emergency, issuance of the Proclamation and issuance of the Stay at Home Order, owners of lodging units in the City of Newport Beach have continued to rent lodging units for short durations; WHEREAS, the rental of lodging units for a short term jeopardizes the health, safety, and welfare of the public and residents of the City because: (a) there are over 1,500 lodging units in the City that have short term lodging permits; (b) the short term lodging units, which have permits, are interwoven throughout the City's residential districts; (c) the Stay at Home Order provides that "... all individuals living in the State of California [are] to stay home or at their place of residence, except as needed to maintain continuity of operations of the federal critical infrastructure"; and (d) the continuous turnover of persons occupying short term lodging units, which are interwoven throughout the residential districts, has the potential to create a risk that COVID-19 will spread throughout the City and beyond; 17-12 Emergency Ordinance No. 2020-003 Page 3 of 6 WHEREAS, Charter Section 412 provides that an ordinance necessary to preserve the public peace, health or safety, may be introduced and adopted at one and the same meeting if passed by at least five affirmative votes; WHEREAS, in furtherance of Governor Newsom's Stay at Home Order and to help prevent the spread of COVID-19 throughout the residential areas of Newport Beach and beyond, on April 3, 2020, the City Council adopted Emergency Ordinance 2020-001, which prohibits the issuance of new short term lodging permits and/or the rental of units for a short term to any person other than those medical professionals and emergency responders coming to the City of Newport Beach to aid with the COVID-19 outbreak; WHEREAS, there is a need to extend the restrictions set forth in Emergency Ordinance No. 2020-001 until 2020, to help protect the community from the spread of COVID-19; and WHEREAS, this emergency ordinance extending the restrictions in Emergency Ordinance No. 2020-001, for a limited time, is the least restrictive way to help ensure that the health, safety, and welfare of the public is protected. NOW, THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council for the City of Newport Beach hereby finds and declares that this emergency ordinance is necessary to help limit the spread of COVID- 19 and to protect the health, safety and welfare of the public, including, but not limited to, the residents of the City of Newport Beach because there are over 1,500 short term lodging units in the City of Newport Beach, which are interwoven throughout the residential districts, and the continuous turnover of occupants at these short term lodging units creates a potential risk that COVID-19 will spread throughout the City of Newport Beach and beyond. The City Council also finds and declares that there are over 1,500 units in the City of Newport Beach that have been issued short term lodging permits, which exceeds the demand for short term lodging units in the City of Newport Beach that are necessary to provide temporary housing to medical professionals and emergency responders coming to Newport Beach to help aid with the COVID-19 outbreak. Section 2: As long as this emergency ordinance is in effect, no new permits for a short term lodging unit, which permit is required prior to renting a lodging unit on a short term basis by Chapter 5.95 of the Newport Beach Municipal Code ("NBMC"), shall be issued by the City of Newport Beach. For purposes of this emergency ordinance, the definition of "short term" shall have the same meaning as Section 5.95.010 (C) of the NBMC; and the definition of "lodging unit" shall have the same meaning as Section 5.95.010 (A) of the NBMC. 17-13 Emergency Ordinance No. 2020-003 Page 4 of 6 Section 3: As long as this emergency ordinance is in effect or until 2020, whichever occurs first, it shall be unlawful for any owner, as defined in Section 5.95.010 (B) of the NBMC, or agent of an owner, to rent, let, advertise for rent, or enter into an agreement for the rental of any lodging unit, where the occupancy would take place during the time period the emergency is in effect, for a short term. Nothing in this section shall be construed, however, to bar or preclude an existing permit holder from renting a lodging unit for a short term to a medical professional or emergency responder coming to the City of Newport Beach to aid with the COVID-19 outbreak. The owner of the short-term lodging unit or units is responsible for compliance with the provisions of this section and the failure of an agent, or any other person or entity to comply with this section shall be deemed non-compliance by the owner. Section 4: Any person occupying a lodging unit as of April 3, 2020, may continue such occupancy. Section 5: A first violation of this emergency ordinance shall be enforceable in accordance with Chapter 1.05 of the NBMC and the fine shall be one thousand dollars. A second violation of this emergency ordinance, as determined by a hearing officer in accordance with Chapter 1.05 of the NBMC, shall be punishable by the suspension of the short term lodging permit for one year from the date of decision by the hearing officer. A third violation of this emergency ordinance, as determined by a hearing officer in accordance with Chapter 1.05 of the NBMC, shall be punishable by the revocation of the short term lodging permit, and the short term lodging permit holder shall not be eligible to reapply for a short term lodging permit for one year. For any suspension or revocation referred to in this section, the City shall conduct the hearings in accordance with Section 1.05.080, 1.05.090, and 1.05.110 of the NBMC except that the City shall set the hearing for consideration by a hearing officer without requiring a request for hearing to be filed or fine to be paid or deposited and all notices shall be sent to the holder of the short term lodging permit. Section 6: The City Manager shall take any and all action to ensure that this emergency ordinance and the provisions contained herein are given widespread publicity. Section 7: The City Manager and Director of Emergency Services is hereby authorized to issue orders and regulations and take such other actions as may be necessary or appropriate to respond to the COVID-19 outbreak. Section 8 The recitals provided in this emergency ordinance are true and correct and are incorporated into the substantive portion of this emergency ordinance. 17-14 Emergency Ordinance No. 2020-003 Page 5 of 6 Section 9: If any section, subsection, sentence, clause or phrase of this emergency ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this emergency ordinance. The City Council hereby declares that it would have passed this emergency ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 10: The City Council finds and determines that the introduction and adoption of this emergency ordinance is not subject to 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. Section 11: This emergency ordinance shall become effective upon its adoption and shall continue in full force and effect until: (a) 2020; (b) the State of Emergency is terminated by proclamation of the Governor of California; (c) the local emergency proclaimed on March 15, 2020 and ratified by the City Council on March 18, 2020, is terminated by proclamation of the City Council; or (d) such time as this emergency ordinance is repealed in whole, or in part, by the City Council. Section 12: The Mayor shall sign, and the City Clerk shall attest to the passage of this emergency ordinance. The City Clerk shall cause the emergency ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. 17-15 Emergency Ordinance No. 2020-003 Page 6 of 6 This emergency ordinance was introduced and adopted at a special meeting of the City Council of the City of Newport Beach held on the 12th day of May 2020, by the following vote, to -wit: AYES: NAYS: ABSENT: WILL O'NEILL, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY TTORNEY'S OFFI C. AARON C. HARP, CITY ATTORNEY 17-16 ATTACHMENT C EMERGENCY ORDINANCE NO. 2020-004 AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, EXTENDING THE RESTRICTION SET FORTH IN EMERGENCY ORDINANCE NO. 2020-001 PROHIBITING THE ISSUANCE OF ANY NEW SHORT TERM LODGING PERMIT PURSUANT TO NEWPORT BEACH MUNICIPAL CODE CHAPTER 5.95 AND REQUIRING A MINIMUM NIGHT STAY FOR ALL SHORT TERM LODGING RENTALS WHEREAS, Section 200 of the Charter of the City of Newport Beach ("City") vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, on January 31, 2020, the United States Secretary of Health and Human Services announced a nationwide public health emergency, in response to the COVID-19 outbreak; WHEREAS, on March 4, 2020, Governor Gavin Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for broader spread of COVID-19 ("State of Emergency); WHEREAS, on March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic; WHEREAS, on March 15, 2020, Governor Newsom called for all bars, wineries, nightclubs and brewpubs to close throughout the state, urged all seniors and people with chronic health conditions to isolate themselves at home, and for restaurants to reduce occupancy by half to keep people farther away from each other; WHEREAS, on March 15, 2020, in response to the COVID-19 outbreak, Newport Beach City Manager Grace Leung, who is the Director of Emergency Services ("Director of Emergency Services") for the City, issued a Proclamation of Local Emergency ("Proclamation"); WHEREAS, on March 18, 2020, the Newport Beach City Council ratified the Proclamation and authorized the Director of Emergency Services to take certain actions to protect the health, safety, and welfare of the public; 17-17 Emergency Ordinance No. 2020-004 Page 2 of 6 WHEREAS, on March 19, 2020, Governor Newsom issued Executive Order N-33- 20, requiring all individuals living in the State of California to stay home or at their place of residence, except as needed to maintain continuity of operations of the federal critical infrastructure sectors ("Stay at Home Order"); WHEREAS, on March 19, 2020 the Federal Cybersecurity and Infrastructure Security Agency issued guidance identifying 14 critical infrastructure sectors whose workers provide services and functions that are essential to support a strong response to the COVID-19 outbreak; WHEREAS, COVID-19 has been detected in millions of people worldwide, including, as of April 30, 2020, 97 cases in the City, and is primarily spread from person to person; WHEREAS, COVID-19 is easily transmitted, especially in group settings, and it is essential that the spread of the virus be slowed to protect the ability of public and private health care providers to handle the influx of new patients and safeguard public health and safety; WHEREAS, this worldwide outbreak of COVID-19 is emerging and rapidly evolving; WHEREAS, since the declaration of the State of Emergency, issuance of the Proclamation and issuance of the Stay at Home Order, owners of lodging units in the City of Newport Beach have continued to rent lodging units for short durations; WHEREAS, the rental of lodging units for a short term jeopardizes the health, safety, and welfare of the public and residents of the City because: (a) there are over 1,500 lodging units in the City that have short term lodging permits; (b) the short term lodging units, which have permits, are interwoven throughout the City's residential districts; (c) the Stay at Home Order provides that "... all individuals living in the State of California [are] to stay home or at their place of residence, except as needed to maintain continuity of operations of the federal critical infrastructure"; and (d) the continuous turnover of persons occupying short term lodging units, which are interwoven throughout the residential districts, has the potential to create a risk that COVID-19 will spread throughout the City and beyond; WHEREAS, Charter Section 412 provides that an ordinance necessary to preserve the public peace, health or safety, may be introduced and adopted at one and the same meeting if passed by at least five affirmative votes, 17-18 Emergency Ordinance No. 2020-004 Page 3 of 6 WHEREAS, in furtherance of Governor Newsom's Stay at Home Order and to help prevent the spread of COVID-19 throughout the residential areas of Newport Beach and beyond, on April 3, 2020, the City Council adopted Emergency Ordinance 2020-001, which prohibits the issuance of new short term lodging permits and/or the rental of units for a short term to any person other than those medical professionals and emergency responders coming to the City of Newport Beach to aid with the COVID-19 outbreak; WHEREAS, there is a need to extend the restrictions set forth in Emergency Ordinance No. 2020-001 prohibiting the issuance of new short term lodging permits and to require a minimum night stay for all short term lodging rentals to help protect the community from the spread of COVID-19; and WHEREAS, this emergency ordinance extending the restriction prohibiting the issuance of new short term lodging permits set forth in Emergency Ordinance No. 2020- 001 and to require a minimum night stay for all short term lodging rentals is the least restrictive way to help ensure that the health, safety, and welfare of the public is protected. NOW, THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council for the City of Newport Beach hereby finds and declares that this emergency ordinance is necessary to help limit the spread of COVID- 19 and to protect the health, safety and welfare of the public, including, but not limited to, the residents of the City of Newport Beach because there are over 1,500 short term lodging units in the City of Newport Beach, which are interwoven throughout the residential districts, and the continuous turnover of occupants at these short term lodging units creates a potential risk that COVID-19 will spread throughout the City of Newport Beach and beyond. The City Council also finds and declares that there are over 1,500 units in the City of Newport Beach that have been issued short term lodging permits, which exceeds the demand for short term lodging units in the City of Newport Beach that are necessary to provide temporary housing to medical professionals and emergency responders coming to Newport Beach to help aid with the COVID-19 outbreak. Section 2: As long as this emergency ordinance is in effect, no new permits for a short term lodging unit, which permit is required prior to renting a lodging unit on a short term basis by Chapter 5.95 of the Newport Beach Municipal Code ("NBMC"), shall be issued by the City of Newport Beach. For purposes of this emergency ordinance, the definition of "short term" shall have the same meaning as Section 5.95.010 (C) of the NBMC; and the definition of "lodging unit" shall have the same meaning as Section 5.95.010 (A) of the NBMC. 17-19 Emergency Ordinance No. 2020-004 Page 4 of 6 Section 3: As long as this emergency ordinance is in effect, it shall be unlawful for any owner, as defined in Section 5.95. 010 (B) of the NBMC, or agent of an owner, to rent, let, advertise for rent, or enter into an agreement for the rental of any lodging unit for less than consecutive nights, where the occupancy would take place during the time period the local or statewide emergency related to COVID-19 is in effect. Nothing in this section shall be construed, however, to bar or preclude an existing permit holder from renting a lodging unit for a short term to a medical professional or emergency responder coming to the City of Newport Beach to aid with the COVID-19 outbreak for any length of time. The owner of the short-term lodging unit or units is responsible for compliance with the provisions of this section and the failure of an agent, or any other person or entity to comply with this section shall be deemed non-compliance by the owner. Section 4: Any person occupying a lodging unit as of April 3, 2020, may continue such occupancy. Section 5: A first violation of this emergency ordinance shall be enforceable in accordance with Chapter 1.05 of the NBMC and the fine shall be one thousand dollars. A second violation of this emergency ordinance, as determined by a hearing officer in accordance with Chapter 1.05 of the NBMC, shall be punishable by the suspension of the short term lodging permit for one year from the date of decision by the hearing officer. A third violation of this emergency ordinance, as determined by a hearing officer in accordance with Chapter 1.05 of the NBMC, shall be punishable by the revocation of the short term lodging permit, and the short term lodging permit holder shall not be eligible to reapply for a short term lodging permit for one year. For any suspension or revocation referred to in this section, the City shall conduct the hearings in accordance with Sections 1.05.080, 1.05.090 and 1.05.110 of the NBMC except that the City shall set the hearing for consideration by a hearing officer without requiring a request for hearing to be filed or fine to be paid or deposited and all notices shall be sent to the holder of the short term lodging permit. Section 6: The City Manager shall take any and all action to ensure that this emergency ordinance and the provisions contained herein are given widespread publicity. Section 7: The City Manager and Director of Emergency Services is hereby authorized to issue orders and regulations and take such other actions as may be necessary or appropriate to respond to the COVID-19 outbreak. Section 8 The recitals provided in this emergency ordinance are true and correct and are incorporated into the substantive portion of this emergency ordinance. 17-20 Emergency Ordinance No. 2020-004 Page 5 of 6 Section 9: If any section, subsection, sentence, clause or phrase of this emergency ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this emergency ordinance. The City Council hereby declares that it would have passed this emergency ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 10: The City Council finds and determines that the introduction and adoption of this emergency ordinance is not subject to 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. Section 11: This emergency ordinance shall become effective upon its adoption and shall continue in full force and effect until: (a) 2020; (b) the State of Emergency is terminated by proclamation of the Governor of California; (c) the local emergency proclaimed on March 15, 2020 and ratified by the City Council on March 18, 2020, is terminated by proclamation of the City Council; or (d) such time as this emergency ordinance is repealed in whole, or in part, by the City Council. Section 12: The Mayor shall sign, and the City Clerk shall attest to the passage of this emergency ordinance. The City Clerk shall cause the emergency ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. 17-21 Emergency Ordinance No. 2020-004 Page 6 of 6 This emergency ordinance was introduced and adopted at a special meeting of the City Council of the City of Newport Beach held on the 12th day of May 2020, by the following vote, to -wit: AYES: NAYS: ABSENT: WILL O'NEILL, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY TTORNEY'S OF E G �.. teCt. AARON C. HARP, CITY ATTORNEY 17-22