Chapter 5.95
SHORT TERM LODGING PERMIT

Sections:

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.

5.95.050    Conditions.

5.95.060    Violations/Penalties/Revocation.

5.95.065    Procedure for Imposition of Penalties/Revocation.

5.95.070    Permits and Fees Not Exclusive.

5.95.080    Penalty.

5.95.090    Amortization and Amnesty Period.

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. (Ord. 92-13 § 3 (part), 1992)

5.95.010 Definitions.

For the purpose of this chapter, the following definitions shall apply:

A.    “Lodging unit” or “unit” shall mean “dwelling unit” as that term is defined in Title 20 of this Code where the dwelling unit or residence, including the bedroom, kitchen and bath, is rented or leased to a person or group of persons living as a single housekeeping unit.

B.    “Owner” shall mean the person(s) or entity(ies) that hold(s) legal and/or equitable title to the lodging unit.

C.    “Short term” shall mean occupancy of a lodging unit for a period of thirty (30) consecutive calendar days or less.

D.    “Residential district” shall mean those areas of the City so designated by Title 20 of the Municipal Code.

E.    “City Manager” shall mean the City Manager of the City of Newport Beach or his or her respective assignees.

F.    “Finance Director” shall mean the Finance Director of the City of Newport Beach or his or her designee. (Ord. 2013-11 § 27, 2013; Ord. 2008-5 § 20, 2008; Ord. 92-13 § 3 (part), 1992)

5.95.020 Permit Required.

No owner of a lodging unit located within a residential district shall rent that unit 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. (Ord. 2004-6 § 1, 2004: Ord. 92-13 § 3 (part), 1992)

5.95.025 Agency.

An owner may retain an agent or a representative 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. (Ord. 92-13 § 3 (part), 1992)

5.95.030 Applicant for Permit.

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.    Evidence of a valid transient occupancy registration certificate issued by the City for the lodging unit.

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. (Ord. 92-13 § 3 (part), 1992)

5.95.035 Denial of Permit.

No application shall be denied unless a permit for the same unit and issued to the same owner has been revoked pursuant to Section 5.95.065 of this chapter. (Ord. 92-13 § 3 (part), 1992)

5.95.040 Filing Fee.

An 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. (Ord. 92-13 § 3 (part), 1992)

5.95.050 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 insure 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 code 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 code 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 insure 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.

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 code or State Law pertaining to noise, disorderly conduct, the consumption of alcohol or the use of illegal drugs.

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)

5.95.060 Violations/Penalties/Revocation.

A.    Violations. Except as provided in subsections (C) and (D) 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 revoked:

1.    The owner has failed to comply with the standard conditions specified in Section 5.95.050(A);

2.    The owner has failed to comply with conditions imposed by the City Manager pursuant to the provisions of Section 5.95.050(B) or (C);

3.    The owner has wilfully violated the provisions of this chapter; or

4.    The owner has failed to pay the transient occupancy tax as required by Chapter 3.16 of this Code.

B.    Penalties. The penalties for violations specified in subsection (A) of this section shall be as follows:

1.    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);

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;

3.    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 revocation of the permit; and

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.    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 revocation of the permit for a period not less than sixty (60) days.

D.    Revocation for Loud or Unruly Gathering. If a lodging unit that is subject to a short term lodging permit has been the location of three 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. (Ord. 2011-13 § 2 (part), 2011: Ord. 2003-5 § 11, 2003: Ord. 92-13 § 3 (part), 1992)

5.95.065 Procedure for Imposition of Penalties/Revocation.

Penalties, including a notice of violation, shall be imposed, and permits shall be revoked, only in the manner provided in this section.

A.    The Finance Director 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) or (D). 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 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 and/or revocation, and specify that the penalties will be imposed and/or the permit will be revoked within thirty (30) days from the date the notice is given unless the owner and/or operator files, with the City Clerk and before the penalties or revocation becomes effective, a request for hearing before the City Manager.

B.    If the owner requests a hearing within the time specified in subsection (A) of this section, the City Clerk 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 City Clerk. The City Manager may preside over the hearing or may designate a hearing officer to take evidence and submit proposed findings and recommendations to the City Manager. The City Manager shall impose the penalties or revoke the permit only upon a finding that a violation has been proven by a preponderance of the evidence, and that the penalty or revocation is consistent with the provisions of Section 5.95.060(B), (C) or (D). 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. (Ord. 2011-13 § 2 (part), 2011: Ord. 92-13 § 3 (part), 1992)

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. (Ord. 92-13 § 3 (part), 1992)

5.95.080 Penalty.

Any person violating the provisions of this chapter by operating a short term lodging unit without a valid permit shall be guilty of a misdemeanor. (Ord. 92-13 § 3 (part), 1992)

5.95.090 Amortization and Amnesty Period.

Owners of short term lodging units shall make application for a permit pursuant to this chapter within sixty (60) days after the effective date of this ordinance. Owners of short term lodgings who, prior to the effective date of this ordinance, failed to obtain a transient occupancy registration certificate pursuant to Chapter 3.16 of this Code, may do so without penalty notwithstanding the provisions of Chapter 3.16, if an application for the certificate is filed no later than sixty (60) days after the effective date of the ordinance codified in this chapter. (Ord. 92-13 § 3 (part), 1992)