Newport Beach City Council
November 28, 2023

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c�<,FORN'P City Council Staff Report
November 28, 2023
Agenda Item No. 6
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Aaron Harp, City Attorney - 949-644-3131,
[email protected]
PREPARED BY: Melanie Franceschini, Management Analyst - 949-644-3028 [email protected]
TITLE: Ordinance No. 2023-22: Adding, Amending, and Repealing Various Provisions of the Newport Beach Municipal Code
ABSTRACT:

For the City Council's consideration is the adoption of Ordinance No. 2023-22 to add, amend and repeal various provisions of the Newport Beach Municipal Code by standardizing language, eliminating unnecessary language, and replacing outdated regulations. The recommendations were first presented at the October 24, 2023 Study Session. Ordinance No. 2023-22 was introduced and considered at the November 14, 2023 City Council meeting.

RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and
b) Conduct second reading and adopt Ordinance No. 2023-22, An Ordinance of the City Council of the City of Newport Beach, California, Adding, Amending, and Repealing Various Provisions of the Newport Beach Municipal Code.

DISCUSSION:

Ordinance 2023-22, as proposed, will update the Newport Beach Municipal Code (Code) by standardizing provisions, eliminating unnecessary language, updating stale provisions, and ensuring that consistency is maintained throughout the Code.

The following is a summary of some of the amendments to the Code contained in the attached ordinance:
• Standardizing provisions regarding citations to local, state and federal law; cross-references to state and federal law; definitions used throughout the Code; and the authority of designees to act on behalf of City officials and employees. 6-1

Ordinance No. 2023-22: Adding, Amending, and
Repealing Various Provisions of the Newport Beach Municipal Code November 28, 2023

• Eliminating unnecessary language including duplicative severability and penalty provisions, as well as outdated regulations that apply to the conversion or demolition of affordable housing; the issuance of health care and recreational facilities revenue bonds; and the library fund.
• Updating outdated regulations including provisions related to insurance requirements; the requirement for indemnification as a condition of approval; service of notice; the judicial review of City decisions; adjustments made based on the Consumer Price Index; the regulation of cannabis; recall elections; traffic and parking regulations including the regulation of parking for persons with disabilities; the authority of City officials and employees to issue citations; local emergencies; the use of ambulances in emergency and non -emergency situations; the use of horses and dogs on City property; drinking in public; alarm monitoring systems; vehicles for hire; taxicabs; food handling services; water and sewer connections including regulations related to fat, oils and grease; residential building record reports; and requirements for a minor use permit for take -out -service fast -casual (up to 20 seats).

If adopted, Ordinance No. 2023-22 will become effective after 30 calendar days.

FISCAL IMPACT:

Ordinance No. 2023-22 incorporates the Planning Commission recommendation to amend the code to make the Residential Building Report optional, rather than mandatory, during an existing property sale or lease transaction. The Community Development Department (CDD) had budgeted $199,507 in Residential Building Report revenue for FY 2023-24. Should the ordinance pass, CDD anticipates a revenue reduction of approximately 75% to only $49,876 for this fiscal year. This reduction in demand would also free up approximately 300 hours of staff time for other priorities.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find 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.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENT:

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ATTACHMENT A
ORDINANCE NO. 2023-22

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF NEWPORT BEACH, CALIFORNIA, ADDING,

AMENDING, AND REPEALING VARIOUS PROVISIONS

OF THE NEWPORT BEACH MUNICIPAL CODE
WHEREAS, the City of Newport Beach ("City") is a charter City, governed by a charter adopted by the citizens of the City;
WHEREAS, Article XI, Section 5 of the Constitution of the State of California ("State") authorizes charter cities to enact ordinances with respect to their municipal affairs;
WHEREAS, Section 200 of the 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; WHEREAS, on September 13, 2022, the City Council adopted Resolution No. 2022-58 forming the Ad Hoc Municipal Code and Council Policy Review Committee ("Council Committee") to review and make recommended revisions to the Newport Beach Municipal Code ("NBMC") and City Council Polices ("Policies"); WHEREAS, the City Council further directed the City's board and commissions, including the Planning Commission, to establish ad hoc committees to review the NBMC and Policies within that body's area of expertise to comprehensively review and amend the NBMC to reduce regulations, streamline processes, and generally update/eliminate outdated information;
WHEREAS, on April 11, 2023, the City Council adopted Resolution No. 2023-58, extending the expiration date of the Council Committee from June 2023 to June 30, 2024;
WHEREAS, in accordance with the City Council's direction, at its August 3, 2023, meeting, the Planning Commission Ad Hoc Committee recommended revisions to Title 19 (Subdivisions), Title 20 (Planning and Zoning) ("Zoning Code Amendment") and Title 21 (Local Coastal Program Implementation Plan) ("Local Coastal Program Amendment") of the NBMC, which recommendations include the following:
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Ordinance No. 2023-

• Report of Residential Building Records — Making the existing mandatory process voluntary;
• Tentative Parcel Map Review — Eliminating the public hearing requirements for parcel maps for condominium purposes;
• Bluff Overlay District — Eliminating conflicting code provisions by deleting the bluff overlay areas in Title 20 that are included in Title 21; • Take -Out Service — Fast -Casual — Changing the threshold for when a fast - casual take-out restaurant with no late hours requires a minor use permit (discretionary review);
• Conversion or Demolition of Affordable Housing — Eliminating Chapters 20.34 and 21.34 as they are no longer applicable to the City; WHEREAS, additional revisions were incorporated into the Zoning Code Amendment and Local Coastal Program Amendment that eliminate conflicting review authority for reasonable accommodations and modify the review authority for alcohol sales with late hours;
WHEREAS, the Planning Commission held a duly noticed public hearing 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;
WHEREAS, at the conclusion of the public hearing, the Planning Commission adopted Resolution No. PC2023-039 by a unanimous vote (5 ayes, 0 nays) recommending approval of the Zoning Code Amendment and Local Coastal Program Amendment to the City Council;
WHEREAS, at the Study Session on October 24, 2023, the City Council considered the Planning Commission's recommendations and the recommendations of the Council Committee to modify the NBMC, which recommendations include, but are not limited to, the following:

Ordinance No. 2023-

• Defined Terms — Adding defined terms to Title 1 of the Code and eliminating duplicate definitions throughout the Code;
• Standardized Citations — Modifying the provisions of the Code so that uniform citations are utilized;
• Incorporation of State and Federal Law — Adding a general provision to Title 1 that incorporates future changes to State and federal law; • Designees — Consolidating the authority to delegate a duty, obligation or responsibility into one provision and adding a requirement that a list of designees be maintained on file with the City Cleric;
• Consumer Price index Adjustments — Standardizing the process for making adjustments tied to the Consumer Price Index;
• Service of Notice — Standardizing the process for service of notice in conformance with State law;
• indemnification — Confirming that indemnification requirements can be added as a condition of approval to all licenses, permits or other approvals; • Insurance — Broadening the insurance requirements to allow more flexibility;
• Severability and Penalty Provisions — Eliminating duplicative provisions including severability and penalty provisions, which are covered in Title 1, from the Code;
Titles — Consolidating multiple titles used for the same position; • Emergencies — Updating provisions related to emergencies to match the definitions in State law and to reflect best practices; • Taxicabs — Establishing taxicab regulations because the County of Orange is no longer regulating taxicabs on a countywide basis, - Marijuana Establishments — Updating the provisions related to the regulation of marijuana establishments to reflect changes in State law; 6-5

Ordinance No. 2023-

• Smoking regulations — Consolidating smoking regulations in the Code and updating provisions to reflect changes in State law, and eliminate ambiguities;
• Ambulance Services — Updating the regulations for ambulance services to reflect current practices related to the delivery of emergency and non - emergency services;
• Vehicle Regulation — Consolidating and updating the vehicle regulations to comply with State law, and eliminate ambiguities;
WHEREAS, after receiving feedback from the City Council and community, an ordinance and resolutions implementing the proposed changes to the Code and Policies were brought back to the City Council for consideration on November 14, 2023; WHEREAS, the City Council held a duly noticed public hearing on November 14, 2023, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the 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 City Council at this hearing; and
WHEREAS, the City Council desires to move forward and amend the NBMC to standardize provisions, eliminate unnecessary language, and update the NBMC.

NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows:

Section 1: The Table of Contents for Title 1 (General Provisions) of the Code is hereby amended to read as follows:
• •

Ordinance No. 2023-

Title 1

GENERAL PROVISIONS
Chapters:

1.01 Adoption of Code

1.04 Code Enforcement

1.05 Administrative Code Enforcement Program

1.06 Claims and Demands Against the City

1.07 Insurance and Indemnification Requirements

1.08 Rules of Construction

1.10 Judicial Review of City Decisions

1.12 Citations and Warrants

1.16 Official Seal, Flag and Colors

1.20 Unclaimed Property

1.25 Municipal Election Campaign Contribution and Expenditure Control

1.26 Electronic Filing of Campaign Disclosure Statements

1.28 Lobbyist Registration and Reporting

1.30 Reserved

1.32 Council Term Limits

1.35 Eminent Domain
Section 2: Section 1.01.020 (Codification Authority) of Chapter 1.01 (Adoption of Code) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:

1.01.020 Codification Authority.

This Code consists of all regulatory, penal and certain administrative ordinances of the City, codified pursuant to the authority of City Charter Section 415 and Cal. Gov. Code Sections 50022.1 through 50022.10.°
Section 3: Section 1.01.030 (Filing of Copies) of Chapter 1.01 (Adoption of Code) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:
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Ordinance No. 2023-

1.01.030 Filing of Copies.

A copy of this Code shall be maintained in the Office of the City Clerk. One copy of each primary code and secondary code, as defined in Cal. Gov. Code Section 50022.1, which is adopted by reference, shall be filed in the Office of the City Clerk in accordance with Cal. Gov. Code Section 50022.6."
Section 4: Section 1.01.040 (Amendments —Notations) of Chapter 1.01 (Adoption of Code) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:

1.01.040 Amendments —Notations.

Upon the adoption of any amendment or addition to this Code, or upon the repeal of any of its provisions, the City Clerk shall certify thereto and shall make an appropriate notation in the bound volumes of this Code of the taking of such action, noting thereon the number of the ordinances pursuant to which such action is taken.

Duly certified copies of every ordinance making changes to this Code shall be filed in the Office of the City Clerk in books for such purpose, duly indexed for ready reference.

Every section of this Code so changed shall have printed thereon a notation of the ordinance number pursuant to which such change is adopted." Section 5: The Table of Contents for Chapter 1.04 (Code Enforcement) of Title 1 of the Code is hereby amended to read as follows:

CHAPTER 1.04

CODE ENFORCEMENT
Sections:

1.04.010
Violations, Penalties and Enforcement.

1.04.020
Public Nuisances.

1.04.050
Parking Violation —Infraction.

1.04.060
Safety Enhancement Zone.
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Ordinance No. 2023-

Section 6: Section 1.04.010 (Violations, Penalties and Enforcement) of Chapter 1.04 (Code Enforcement) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:
"1.04.010 Violations, Penalties and Enforcement.

The provisions of this section represent the means and methods by which the City of Newport Beach intends to secure compliance with the provisions of this Code. The City may use any or all of the enforcement options in securing compliance with the provisions of this Code and multiple enforcement options may be used to achieve compliance with respect to persons who commit continuing violations. A separate offense shall be deemed to have been committed whenever: (a) a person repeats the act that constitutes the violation; or (b) any condition or circumstance that constitutes a violation is allowed to exist for more than twenty-four (24) hours.

A. infraction. Any person violating any of the provisions or failing to comply with any of the mandatory requirements of this Code may be prosecuted for an infraction. Written citations for infractions may be issued by police officers or non -safety employees designated in Section 1.12.020. Except where a specific fine for an infraction is provided for in this Code, or as provided in subsection (B), any person convicted of an infraction under the provisions of this Code shall be punishable either by fines as specified in the currently adopted Uniform Infraction Bail Schedule used by the Orange County Superior Courts, or where no fine is specified therein by:

1. A fine not exceeding one hundred dollars ($100.00) for a first violation;

2. A fine not exceeding two hundred dollars ($200.00) for a second violation of the same ordinance within one year from the date of the prior violation; and

3. A fine not exceeding five hundred dollars ($500.00) for each additional violation of the same ordinance within one year from the date of the prior violation.

B. Safety Enhancement Zone. For any violation of this Code that is committed within an area that has been designated by the City Council as a Safety Enhancement Zone pursuant to Section 1.04.060, and during the time that designation is effective, the fine shall be treble the amount otherwise prescribed or where the violation is considered an infraction and no fine is specified the fine shall be as follows:

1. A fine not exceeding three hundred dollars ($300.00) for a first violation;

2. A fine not exceeding six hundred dollars ($600.00) for a second violation of the same ordinance within one year from the date of the prior violation; and .•

Ordinance No. 2023-

3. A fine not exceeding one thousand dollars ($1,000.00) for each additional violation of the same ordinance within one year from the date of the prior violation.

C. Misdemeanor. Any person violating any of the provisions or failing to comply with any of the mandatory requirements of this Code may be prosecuted for a misdemeanor.

Written citations for misdemeanors may be issued by police officers or by non -safety employees designated by Section 1.12.020. Any person convicted of a misdemeanor under the provisions of this Code shall be punished by a fine not exceeding one thousand dollars ($1,000.00) or imprisonment for a term not exceeding six (6) months, or by both such fine and imprisonment.

D. Civil Action. The City Attorney may institute an action in any court of competent jurisdiction to restrain, enjoin or abate the condition(s) found to be in violation of the provisions of this Code, as provided by law. In any civil action, in addition to all other remedies, costs, fines and fees, the court may impose civil penalties payable to the City in an amount not to exceed one thousand dollars ($1,000.00) per violation for each day the violation is found to exist against any person who commits, continues, operates, allows or maintains any violation of any provision of this Code. In determining the amount of the civil penalties to be assessed on a daily rate for each violation, the court may consider some or all of the following factors:

1. The duration of the violation;

2. The frequency of recurrence of the violation;

3. The seriousness of the violation;

4. The history of the violation;

5. The person's conduct after issuance of any notice;

7. The economic impact of the penalty;

8. The impact of the violation upon the community; and

9. Any other factors that justice may require.

E. Administrative Code Enforcement Program. Upon a finding by the City official vested with the authority to enforce the various provisions of this Code that a violation exists, the City official may take any action authorized under the provisions of Chapter

1.05."
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Section 7: Section 1.04.040 (Violation of Administrative Provisions) of Chapter

1.04 (Code Enforcement) of Title 1 of the Code is hereby deleted in its entirety.

Section 8: Section 1.04.050 (Parking Violation — Infraction) of Chapter 1.04 (Code Enforcement) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:

1.04.050 Parking Violation —infraction.

Any person violating any provision of Sections 12.12.010, Chapter 12.40, Chapter

12.44, except Sections 12.44.130 and 12.44.140, or Chapter 12.48 of this Code shall be guilty of an infraction."
Section 9: Section 1.04.060 (Safety Enhancement Zone) of Chapter 1.04 (Code Enforcement) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:
"1.04.060 Safety Enhancement Zone.

A. Designation Process. The City Council may by ordinance, or by resolution upon a finding that there is a need to take immediate action to protect the public health, safety and welfare, designate a specific geographical area as a "Safety Enhancement Zone" and specify the date and/or time that the designation is effective upon a finding that the geographical area is subject to unique conditions and circumstances during a specific period of time that create the potential for a significant threat to public health and safety and that the threat would be reduced by enhanced penalties for violations of provisions of this Code and increased responsibilities on the part of residents and occupants in the area. The ordinance or resolution establishing a Safety Enhancement Zone shall contain the following provisions: (a) a description of the geographical area comprising the Safety Enhancement Zone; (b) the date and time during which the Safety Enhancement Zone designation is applicable to the geographical area, (c) the factual basis for the designation; (d) the manner in which general notice of the Safety Enhancement Zone and the penalties for violations shall be given; and (e) the manner in which specific notice of additional duties, responsibilities and/or restrictions shall be given to owners or occupants of property affected by the Safety Enhancement Zone designation.

B. West Newport Safety Enhancement Zone. The City Council designates as a Safety Enhancement Zone the area bounded by the Pacific Ocean on the south, 32nd Street and Newport Boulevard on the east, Pacific Coast Highway on the north and 54th Street 6-11

Ordinance No. 2023-

on the west. This designation is effective from 12:01 a.m. on July 4th to 3:00 a.m. on July 5th during each year that the designation is in effect. The factual basis for this designation is found in Section 1 of Ordinance 2003-5. Notice of the Safety Enhancement Zone designation shall be posted on or before 0:00 p.m. on July 3rd at no less than three (3) locations along Pacific Coast Highway, four (4) locations along Newport Boulevard/32nd Street, four (4) locations along Oceanfront Walk/Seashore Drive and two (2) locations along 54th Street. In addition, letters advising of the Safety Enhancement Zone designation and the fines, penalties and provisions affected by the designation shall be sent, on or before June 15th to each address and each owner of property (ownership determined on the basis of the most recent property tax information available to the City) within the Safety Enhancement Zone." Section 10: Subsections (A), (C) and (E) of Section 1.05.005 (Legislative Findings and Statement of Purpose) of Chapter 1.05 (Administrative Code Enforcement Program) of Title 1 of the Code are hereby amended to read as set forth below:

Subsection (A) of Section 1.05.005 shall read as set forth in the quotations below:
"A. The City Council finds that the enforcement of this Code throughout the City is an important public service and is vital to the protection of the public's health, safety and quality of life."
Subsection (C) of Section 1.05.005 shall read as set forth in the quotations below:
"C. The procedures established in this chapter are in addition to criminal, civil or other legal remedies that may be available to the City to enforce violations of this Code or applicable State laws."
Subsection (E) of Section 1.05.005 shall read as set forth in the quotations below:
"E. The City Council finds that the adoption and implementation of this administrative code enforcement program is within the power and authority of the City as a charter city and will achieve the following goals:

1. To promote and protect the public health, safety and welfare of the citizens of the City;

2. To help ensure compliance with this Code and State laws, ordinances and regulations in a timely and efficient manner;
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3. To provide for an administrative process to appeal the imposition of administrative citations, fines, penalties and costs that will fully comport with due process and provide those alleged to be in violation of this Code with the right to a fair hearing without the need for legal counsel;

4. To provide a method to hold parties responsible when they fail or refuse to comply with the provisions of this Code, ordinances, agreements or terms and conditions on entitlements in the City; and

5. To reduce the burden on the judicial system and minimize the time and expense of defending the alleged violation on the part of the responsible person." Section 11: Subsections (A) and (F) of Section 1.05.020 (Authority and Administrative Citation Fines) of Chapter 1.05 (Administrative Code Enforcement Program) of Title 1 of the Code are hereby amended to read as set forth below:

Subsection (A) of Section 1.05, 020 shall read as set forth in the quotations below:
"A. Any responsible person violating any provision of this Code may be issued an administrative citation by an Enforcement Officer as provided in this chapter. A violation of this Code includes, but is not limited to, all violations of this Code, any codes adopted by the City Council (i.e., Building Code, Fire Code, etc.), and the failure to comply with any condition imposed by any entitlement, permit, agreement or environmental document issued or approved pursuant to this Code or State law." Subsection (F) of Section 1.05.020 shall read as set forth in the quotations below:
"F. In the case of administrative citations issued for violations of Chapter 5.28 (Live Entertainment Establishments); Chapter 5.32 (Cafe Dances); Chapter 5.95 (Short Term Lodging Permit); Section 6.04.100 (Prohibited Material); Section 6.04.110 (Accumulation Limitation); Section 10.50.020(H) (violation of terms or conditions of a use permit issued by the City); Section 12.63.030 (Franchise to Operate Required); Section 12.63.120 (Recycling Requirement); Section 12.63.130 (City Inspection Authority); Section 14.36.030 resulting in bay or beach closure (illicit Connections and Prohibited Discharges); Cal. Fire Code Section 107.5 (as adopted by Section 9.04.010); Cal, Fire Code Section 107.5.1 (as adopted by Section 9.04.010); Section 17.45.030 (Waste and Refuse); or Chapter 17.10 (Marine Activities Permit), administrative fines shall be assessed in the following amounts when authorized by the City Manager:

1. A fine not exceeding one thousand dollars ($1,000.00) for a first violation; 6-13

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2. A fine not exceeding two thousand dollars ($2,000.00) for a second violation of the same ordinance or permit within one year from the date of the prior violation; and

3. A fine not exceeding three thousand dollars ($3,000.00) for a third violation, or any subsequent violation, within one year from the date of the prior violations." Section 12: Subsection (G) of Section 1.05.050 (Administrative Costs Recovery) of Chapter 1.05 (Administrative Code Enforcement Program) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:
"G. Any responsible person aggrieved by the Hearing Officer's decision under this section may obtain judicial review of that decision by filing a petition for review with the Orange County Superior Court in accordance with Cal. Code Civ. Proc, Section 1094.5."
Section 13: Section 1.05.060 (Appeal of Administrative Citation) of Chapter

1.05 (Administrative Code Enforcement Program) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:

1.05.060 Appeal of Administrative Citation.

A. Any recipient of an administrative citation may contest that there was a violation of this Code or that he or she is the responsible person by completing a request for hearing form and returning it to the City's Finance Department within twenty-one (21) days from the date of service of the administrative citation, together with an advance deposit of the fine or a notice that a request for an advance deposit hardship waiver pursuant to subsection (B) of this section has been filed. Any administrative citation fine which has been deposited shall be refunded if it is determined, after a hearing, that the person charged in the administrative citation was not responsible for the violation(s) or that there was no violation(s) as charged in the administrative citation.

B. Any responsible person who requests a hearing to contest that there was a violation of this Code or that he or she is the responsible person for the violation and who is financially unable to make the advance deposit of the fine as required may file a request for an advance deposit hardship waiver within fifteen (15) days from the date of service of the citation. The failure of any person to timely file a written request for an advance deposit hardship waiver with the City's Finance Director shall be deemed a failure to exhaust the person's administrative remedies with regard to the advance deposit hardship waiver.
1, The request for an advance deposit hardship waiver shall be in writing and describe with particularity the responsible person's actual financial inability demonstrating why all or a part of the fine cannot be paid. Further, the written request 6-14

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for an advance deposit hardship waiver must be accompanied by a sworn affidavit, together with any supporting documents or materials, demonstrating to the satisfaction of the City's Finance Director the responsible person's actual financial inability that necessitates an advance deposit hardship waiver. The City's Finance Director is entitled to request additional documentation and information from the responsible person to fully assess the waiver request. The failure of any responsible person to timely submit all requested additional documentation and information to the City's Finance Director as requested shall be deemed a failure to exhaust the responsible person's administrative remedies with regard to the advance deposit hardship waiver.

2. Once a complete written request for an advance deposit hardship waiver is filed with the City's Finance Director, the requirement of depositing the full amount of the fine shall be stayed until the City's Finance Director determines whether to grant, grant in part, or deny the request. The written determination of the City's Finance Director shall be served on the person requesting the advance deposit hardship waiver as provided for in this Code. The written determination of the Finance Director, shall be final.

3. If the City's Finance Director grants the advance deposit hardship waiver, the responsible person shall not be required to deposit the fine in advance of the hearing.

4. If the City's Finance Director grants in part the advance deposit hardship waiver, the responsible person shall remit that amount of the fine as a deposit that the City's Finance Director determines the responsible person has the ability to pay within ten (10) days of that decision or twenty-one (21) days from service of the administrative citation, whichever is later.

5. If the City's Finance Director, denies the request for an advance deposit hardship waiver, the responsible person shall remit the full amount of the fine as a deposit to the City within ten (10) days of that decision or twenty-one (21) days from service of the administrative citation, whichever is later.

6. The granting, or granting in part, of any request for an advance deposit hardship waiver shall not excuse or discharge any continuation or repeated occurrence of any violation of this Code, nor shall it bar further enforcement action by the City.

7. The granting, or granting in part, of any request for an advance deposit hardship waiver shall not excuse the responsible person from paying the full amount of the fine if the administrative citation is upheld by the hearing officer following an administrative hearing."
Section 14: Subsections (K) and (0) of Section 1,05.065 (Administrative Penalties) of Chapter 1.05 (Administrative Code Enforcement Program) of Title 1 of the Code are hereby amended to read as set forth below:
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Subsection (K) of Section 1.05.065 shall read as set forth in the quotations below.
"K. Within forty-five (45) days of the completion of the administrative hearing on administrative penalties notice and order, the Hearing Officer shall issue an administrative penalties enforcement order. The administrative penalties enforcement order shall become final as to the City and take effect on the date it is signed by the Hearing Officer. The administrative penalties enforcement order shall be subject to judicial review pursuant to Cal. Code Civ, Proc. Section 1094.5.

The administrative penalties enforcement order shall contain the following information:

1. Date(s) of the administrative hearing;

2. Identification by name of each Enforcement Officer, responsible person and any other person or witness attending the hearing;

3. A determination regarding the sufficiency of notice for due process purposes;

4. A summary of the evidence presented by each witness, including exhibits;

5. Findings of fact, analysis of applicable sections of this Code, and conclusions of law as to the issues relevant to the administrative hearing;

6. A determination and assessment of administrative civil penalties and administrative costs to be awarded to the City, if any;

7. Notice of appeal rights and judicial review pursuant to California Code of Civil Procedure Section 1094.6;
8, Signature of the Hearing Officer and the signature date." Subsection (0) of Section 1.05.065 shall read as set forth in the quotations below:
"O. Any responsible person aggrieved by an administrative penalty's enforcement order may obtain judicial review of that order by filing a petition for review with the Orange County Superior Court in accordance with the timelines and provisions set forth in Cal. Code. Civ. Proc. Section 1094.6."
Section 15: Section 1.05.110 (Right to Judicial Review of Hearing Officer's Decision on Administrative Citation) of Chapter 1.05 (Administrative Code Enforcement 6-16

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Program) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:

1.05.110 Right to Judicial Review of Hearing Officer's Decision on Administrative Citation.

Any person aggrieved by an administrative decision of a Hearing Officer on an administrative citation may obtain review of the administrative decision by filing a petition for review with the Orange County Superior Court in accordance with the timelines and provisions as set forth in Cal. Gov. Code Section 53069.4." Section 16: The Table of Contents for Chapter 1.06 (Claims and Demands Against the City) of Title 1 of the Code is hereby amended to read as follows:

Chapter 1.06

CLAIMS AND DEMANDS AGAINST THE CITY
Sections:

1.06.010 Purpose and Intent.

1.06.020 Claims Against City.

Section 17: Section 1.06.010 (Purpose and Intent) of Chapter 1.06 (Claims and Demands Against the City) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:
"1.06.010 Purpose and Intent.

The Government Claims Act (Cal. Gov. Code Section 810 et seq.) provides that no suit for money or damages may be brought against the City unless a claim has been timely presented to the City. The general claim procedures are governed by the provisions of Cal. Gov. Code, Title 1, Division 3.6, Part 3, commencing with Section 900, which also provide that local ordinances shall govern those claims which are excluded by the Act and which are not expressly governed by another State statute.

The time periods and procedures for presenting a claim set forth in this chapter are intended to apply to all claims excluded by the Act or not expressly governed by statute, including claims which currently exist, whether or not they have been presented to the City. This chapter is not intended to extinguish existing claims without providing a reasonable period for the presentation of those claims." 6-17

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Section 18: Section 1.06.020 (Claims Against City) of Chapter 1.06 (Claims and Demands Against the City) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:
"1.06.020 Claims Against City.

A. All claims and demands against the City for damages or money, which are not governed by any other statute or regulation expressly related thereto, including those claims exempted by Cal. Gov. Code Section 905, shall be presented within the time and in the manner prescribed by Cal. Gov. Code, Title 1, Division 3.6, Part 3 (Section 900 et seq.).

B. All claims or demands against the City shall be made in writing and filed with the City Clerk. All claims shall be signed by the claimant or by claimant's guardian, conservator, executor or administrator. No claim may be filed on behalf of a class of persons unless signed by the representative claimant along with sufficient information to ascertain the class itself.

C. In accordance with Cal. Gov. Code Sections 935 (b) and 945.4, all claims shall be presented as provided in this section prior to the filing of suit on such claims," Section 19: Section 1.06.030 (Application; Effective Date) of Chapter 1.06 (Claims and Demands Against the City) of Title 1 of the Code is hereby deleted in its entirety.

Section 20: Section 1.06.040 (Severability) of Chapter 1.06 (Claims and Demands Against the City) of Title 1 of the Code is hereby deleted in its entirety.

Section 21: The Table of Contents for Chapter 1.07 (Insurance and Indemnification Requirements) of Title 1 of the Code is hereby amended to read as follows:

Chapter 1.07

INSURANCE AND INDEMNIFICATION REQUIREMENTS
Sections:

1.07.010 Purpose and Findings.

1.07.020 Definitions.

1.07.025 Insurance.

1.07.030 Indemnification Required.
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1.07.040 Conditions.

1.07.050 Indemnification —Payment on Demand.

Section 22. Section 1.07.010 (Purpose and Findings) of Chapter 1.07 (Insurance and Indemnification Requirements) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:
"1.07.010 Purpose and Findings.

A. The City Council finds that the issuance of licenses, permits and other approvals pursuant to the provisions of this Code creates a risk to the City as a result of issuing those licenses, permits and approvals, which are primarily for the benefit of the applicant, licensee or permittee. This is especially true for projects for which discretionary City approvals are necessary and for which, in addition to other legal requirements, environmental review by the City is required pursuant to CEQA because, among other things, substantial City time and effort are expended in complying with CEQA's requirements and other legal requirements necessary before granting such approvals.

B. Judicial challenges arising from or related to the issuance of licenses, permits and other approvals, especially the City's CEQA determinations for projects requiring discretionary approvals, are costly and time consuming. In addition, project opponents often seek an award of attorneys' fees or costs in such challenges. As project applicants, licensees, and permittees are the primary beneficiaries of such approvals, it is appropriate that such applicants, licensees and permittees should bear the expense of defending against any such judicial challenge, and bear the responsibility for any costs, attorneys' fees, and damages which may be awarded to a successful challenger." Section 23: Section 1.07.020 (Definitions) of Chapter 1.07 (Insurance and Indemnification Requirements) of Title 1 of the Code is hereby amended to read as follows:

1.07.020 Definitions.

In this chapter the following words or phrases shall have the following meanings:
"Application" means an initial written request required by the City which commences the City's processing of the project that requires a discretionary approval and approval of a CEQA document.
"CEQA" means the California Environmental Quality Act and the State CEQA Guidelines (Cal. Pub. Resources Code Section 21000 et seq. and 14 CCR Section 6-19

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15000 et seq.) and any action taken pursuant thereto including, but not limited to, an environmental impact report, subsequent environmental impact report, supplemental environmental impact report, mitigated negative declaration, negative declaration, addendum to an environmental impact report or negative declaration, statutory exemption, categorical exemption, or a determination that no CEQA document is required.
"Project" means any amendment, modification permit, use permit, variance or other City issued permit that requires discretionary approval in accordance with this Code.

Section 24: Section 1.07.025 (Insurance) of Chapter 1.07 (Insurance and Indemnification Requirements) of Title 1 of the Code is hereby added to read as set forth in the quotations below:
"1.07.025 Insurance.

For any license, permit or approval issued pursuant to this Code, the City may add as a condition of approval a requirement that the applicant, licensee, or permittee obtain insurance that will substantially protect the City from liability. The Risk Manager shall have the authority to determine all insurance requirements including, but not limited to, certificates, language, type, amount, endorsements, and waivers of subrogation.

Insurance required by the Risk Manager or as otherwise provided for under the provisions of this Code shall be governed by the following requirements:

A. Each certificate of insurance shall require approval by the Risk Manager; B. Insurance furnished must contain a condition that it cannot be modified or cancelled without at least thirty (30) days' written notice to the City; C. All insurers shall be authorized by the California Insurance Commissioner to transact the business of insurance in the State, with an assigned policyholders' rating and financial size category class determined to be appropriate by the Risk Manager; and
D. Any other requirements the Risk Manager deems necessary to protect the interests of the City.

The City Manager or Risk Manager may waive any of the requirements set forth in this section if they determine the requirement is unnecessary to protect the interests of the City."
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Section 25: Section 1.07.030 (Indemnification Required) of Chapter 1.07 (Insurance and Indemnification Requirements) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:
"1.07.030 Indemnification Required.

A. For any license, permit or approval issued pursuant to this Code, the City may add as a condition of approval a requirement that the licensee, permittee, or applicant defend, indemnify, release and hold harmless the City, its City Council, boards and commissions, officers, agents, volunteers, and employees, from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to the license, permit, or approval. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, or proceeding whether incurred by licensee, permittee, or applicant, the City, and/or the parties initiating or bringing such proceeding.

B. Any applicant for a discretionary permit under any provision of this Code which also requires a determination under CEQA shall be provided notice of the provisions of this chapter. Any project approval may, in the discretion of the approving body, be conditioned to indemnify the City according to the provisions of this chapter, as follows:

Defend, indemnify, release and hold harmless the City, its City Council, boards and commissions, zoning administrator, officers, agents, volunteers, and employees from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to the project, the project's approval based on the City's CEQA determination and/or the City's failure to comply with the requirements of any federal, State, or local laws, including, but not limited to, CEQA, General Plan and zoning requirements. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, or proceeding whether incurred by the applicant, the City, and/or the parties initiating or bringing such proceeding."
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Section 26: Section 1.07.040 (Conditions) of Chapter 1.07 (insurance and Indemnification Requirements) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:
"1.07.040 Conditions.

Any indemnification required under the provisions of this chapter shall be subject to the following:

A. The City shall promptly notify the applicant, licensee or permittee of any claim, action, or proceeding related to any license, permit or approval or that is brought to attack, set aside, void or annul a discretionary project approval, and/or approval of a related CEQA document;
B. The City shall retain the right to participate in the defense of the claim, action or proceeding including selection of defense counsel;
C. The applicant, licensee or permittee shall not be required to pay or perform any settlement unless the settlement is approved by the applicant, licensee or permittee; and
D. The applicant, licensee or permittee shall indemnify the City for all of City's costs, fees, and damages which City incurs in enforcing the indemnification agreement." Section 27: Section 1.07.050 (Indemnification —Payment on Demand) of Chapter 1.07 (Insurance and Indemnification Requirements) of Title 1 of the Code is hereby amended to as set forth in the quotations below:

A .07.050 Indemnification —Payment on Demand.

The applicant, licensee or permittee shall pay to the City upon demand any amount owed to the City pursuant to the indemnification requirements prescribed in this chapter."
Section 28: The Table of Contents for Chapter 1.08 (Rules of Construction) of Title 1 of the Code is hereby amended to read as follows:
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Chapter 1.08

RULES OF CONSTRUCTION
Sections:

1.08.010 Effect of General Provisions.

1.08.020 Effect of Title, Chapter and Section Headings.

1.08.030
Territorial Limitation.

1.08.040
Unlawful Acts or Omissions Inclusive.

1.08.050
Authority of Designated Officials.

1.08.055
Hearing Officer.

1.08.060
Writing Defined.

1.08.070
Extent of Reference.

1.08.080
Service of Notices.

1.08.090
Proof of Service of Notice.

1.08.100
Posting of Public Notices.

1.08.105
Consumer Price Index Adjustments.

1.08.110
Interpretive Provisions.

1.08.120
Definitions.

Section 29: Section 1.08.050 (Authority of Designated Officials), formerly referred to as Section 1.08.050 (Authority of Deputies), of Chapter 1.08 (Rules of Construction) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:

1.08.050 Authority of Designated Officials.

A. Unless a person is specifically prohibited from doing so by the City Charter, State or federal law, when this Code vests a power, duty, obligation or responsibility in an official, department director, or employee, the official, department director or employee may designate a City position or another person to act on their behalf.

B. Any official, department director, or employee who vests a duty, obligation or responsibility in a designee, shall inform the City Clerk of the designation. The City Clerk shall maintain a list of all designations and shall provide a copy to the public upon request."
Section 30: Section 1.08.070 (Extent of Reference) of Chapter 1.08 (Rules of Construction) of Title 1 of the Code is hereby amended to read as follows:
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1.08.070 Extent of Reference.

Whenever a reference is made to any portion of this Code, to any ordinances of this City, to any State law, rules or regulations or to any federal law, rules or regulations, the reference includes all amendments and additions now or hereafter made thereto and/or any successor statute."
Section 31: Section 1.08.100 (Posting of Public Notices) of Chapter 1.08 (Rules of Construction) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:

1.08.100 Posting of Public Notices.

Wherever any section of this Code requires the posting of a notice in a public place, such notice shall be posted in accordance with all legal requirements at City Hall." Section 32: Section 1.08.105 (Consumer Price Index Adjustments) of Chapter

1.08 (Rules of Construction) of Title 1 of the Code is hereby added to read as set forth in the quotations below:

1.08.105 (Consumer Price Index Adjustments).

Whenever this Code calls for an increase of an amount, limit or rate schedule that is set forth in this Code to reflect the change in the Consumer Price Index, as defined in Section 1.08.120, the increase shall apply to the current amount, limit or rate schedule that is then in effect on the date adjustment. Unless another adjustment date is specifically set forth in this Code, the effective date of any adjustment shall be July 1.

Unless another time period for calculating the change in the Consumer Price Index is specifically set forth in this Code, the increase to the amount or limit shall be determined by calculating the percentage change from March of the prior year to March of the current year."
Section 33: Section 1.08.120 (Definitions) of Chapter 1.08 (Rules of Construction) of Title 1 of the Code is hereby amended to read as follows:

1.08.120 Definitions.

Unless a more specific definition is provided or the context in which they are used clearly requires otherwise, the following terms and phrases used in this Code shall have the meaning ascribed to them in this part:

Assistant City Manager. The term "Assistant City Manager" means an Assistant City Manager working in the City Manager's Office.
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Building Official. The term `Building Official" means the Building Manager or Chief Building Official of the City's Community Development Department or the person designated by the Community Development Director as the Building Official.

California Code of Regulations. The terms "California Code of Regulations" or "CCR" mean the state administrative regulations that are cited as "title number CCR section number' or "title number CCR division number, chapter number, article number, section number.

California Environment al Quality Act or CEQA. The terms "California Environmental Quality Act" or "CEQA" means the California Environmental Quality Act (Cal. Pub.

Resources Code Section 21000 et seq.) and the State CEQA Guidelines (14 CCR Section 15000 et seq.).

Chief of Police. The terms "Chief of Police" or "Police Chief' means the individual who manages and directs the City's Police Department.

City. The term "City" means the City of Newport Beach, a municipal corporation and charter city, or, when referring to territory or territorial limits, it means the area within the territorial City limits of the City and such territory outside the City over which the City has jurisdiction or control by virtue of any law.

City Attorney. The term "City Attorney" means the City Council appointed official who occupies the position as the City Attorney of the City.

City Charter. The term "City Charter' means the City Charter of the City.

City Clerk. The term "City Clerk" means the City Council appointed official who occupies the position as the City Clerk of the City.

City Council. The term "City Council" or "Council" means the City Council of the City of Newport Beach.

City Hall. The terms "City Hall" or "Civic Center" means the City's Civic Center located at 100 Civic Center Drive, Newport Beach, California, that includes most administrative offices of the City and related parking.

City Manager. The term "City Manager" means the City Council appointed official who occupies the position as the chief administrative officer of the City.

City Engineer. The term "City Engineer' means the City Engineer of the City's Public Works Department, or the individual designated by the Public Works Director as the City Engineer.
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City Treasurer. The term "City Treasurer" means the individual appointed as the City's Finance Director.

Code. The term "Code" means the Newport Beach Municipal Code.

Community Development Director. The term "Community Development Director" means the individual who manages and directs the City's Community Development Department.

Consumer Price Index. The term "Consumer Price Index" means the Los Angeles -Long Beach -Anaheim, California Area, All Urban Consumers, All items, Base Period (1982- 84=100), or successor index, as published by the United States Department of Labor, Bureau of Labor Statistics.

County. The term "County" means the County of Orange.

Day. The terms "day" or "days" means a calendar day, unless otherwise specifically provided.

Day care center. The term "day care center means a child care --infant center, and child care center (preschool) licensed by the State Department of Social Services that is not located on a residentially zoned property including, but not limited to, Bright Horizons at Newport Beach; Carden Hall; Catalyst Kids -Newport Heights; Christ Church by the Sea Children's Center; Environmental Nature Center (ENC) Nature Preschool; Miraculous Milestones; Montessori Way Learning Center, Inc., Newport Coast Child Development Preschool; Newport Harbor Lutheran Church; St. Andrew's Preschool; St.

Mark Community Preschool; St. Matthew's Montessori Preschool; Temple Bat Yahm; and Tutor Time Child Care/Learning Center.

Designee. The term "designee" means a position, employee, or person that is authorized to fulfill a duty, obligation or responsibility.

District Attorney. The term "District Attorney" means the Orange County District Attorney.

Fair Political Practices Commission. The terms "Fair Political Practices Commission" or "FPPC" means the five -member independent, non -partisan commission that has primary responsibility for the impartial and effective administration of the Political Reform Act.

Finance Director. The term "Finance Director means the individual who manages and directs the City's Finance Department.

Fire Chief. The term "Fire Chief' means the individual who manages and directs the Fire Department.
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Fire Marshal. The term "Fire Marshal" shall mean the Fire Marshal of the City's Fire Department, or the individual designated by the Fire Chief as the Fire Marshal.

Harbor Commission. The term "Harbor Commission" shall mean the Harbor Commission of the City.

Harbor Department. The term "Harbor Department" shall mean the Harbor Department of the City. Any provision within this Code or any uncodified ordinance or resolution referring to the Harbor Resources Division shall mean the Harbor Department.

Harbormaster. The term "Harbormaster" shall mean the individual who manages and directs the Harbor Department. Any provision within this Code or any uncodified ordinance or resolution referring to the Harbor Resources Manager shall mean the Harbormaster.

Health Officer. The term "Health Officer" means the Orange County Health Officer.

Human Resources Director. The term "Human Resources Director" means the individual who manages and directs the City's Human Resources Department.

Library Services Director. The term "Library Services Director" means the individual who manages and directs the City's Public Library System.

Oath. The term "oath" means and includes affirmation.

Office. The term "office" means the title of any officer, employee, or office, of the City of Newport Beach.

Owner. The term "owner'' applied to a building or land, means and include any part owner, joint owner, tenant, tenant in common or joint tenant, of the whole or a part of such building or land.

Pacific Ocean. The term "Pacific Ocean" means the waters off of the City from the beach to a point three (3) nautical miles seaward.

Person. The term "person" means and includes any individual, firm, partnership, joint venture, limited liability company, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, assignee for the benefit of creditors, trustee, trustee in bankruptcy, syndicate, the United States, this State, any county, city and county, municipality, district, or other political subdivision of the State, or any other group or combination acting as a unit.

Public park of public facility. The terms "public park" or "park facility" means all publicly owned, managed or leased land that is open to the public, walking or hiking trails, parks 6-27

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and park -related buildings, facilities and improvements, and any school facilities when they are in use as recreational or community center facilities and under the control of the Director of the Recreation and Senior Services Department including, but not limited to, Arroyo Park; 38th Street Park; Back Bay View Park; Bayside Park; Bayview Park; Begonia Park; Big Canyon Park; Bob Henry Park; Bolsa Park; Bonita Canyon Sports Park; Bonita Creek Park & Community Center; Buffalo Hills Park; Canyon Watch Park; Carroll Beek Community Center and Balboa Island Park; Castaways Park; Channel Place Park; Civic Center Community Center; Civic Center Park; Cliff Drive Park and Community Center; Coastal Peak Park; Corona del Mar Pocket Park; Corona del Mar State Beach; Dog Park; Eastbluff Park & Boys and Girls Club; Galaxy View Park; Gateway Park; Grant Howald Park & Community Youth Center; Harbor View Nature Park; Harbor Watch Park; Inspiration Point; Irvine Terrace Park; Jasmine Creek Park; John Wayne Park and Theater Arts Center; Kings Road Park; L Street Park; Lake Ave Park; Lido Park; Lincoln Athletic Center; Lookout Point; Los Trancos Canyon View Park (lower, middle, upper); Lower Castaways Park; M Street Park; Marian Bergeson Aquatic Center; Marina Park; Mariners Park and VJ Community Center; Mesa Birch Park; Miramar Park; Myrtle Park; Newport Aquatic Center; Newport Coast Community Center; Newport Island Park; Newport Shores Park; North Star Beach, OASIS Senior Center; Old School Park; Peninsula Park; Rhine Wharf Park; San Joaquin Hills Park and Lawn Bowling Center; San Miguel Park; Spyglass Hill Park; Spyglass Hill Reservoir Park; Sunset Ridge Park; Sunset View Park; Upper Buck Gully Reserve; Uptown Park; Veteran's Memorial Park; West Jetty View Park; West Newport Community Center; West Newport Park; and Westcliff Park.

Public Works Director. The term "Public Works Director" means the individual who manages and directs the City's Public Works Department.

Recreation and Senior Services Director. The term "Recreation and Senior Services Director' means the individual who manages and directs the City's Recreation and Senior Services Department.

Revenue Division. The term "Revenue Division" means the City's Finance Department Revenue Division.

Risk Manager. The term "Risk Manager" means the Risk Manager of the City's Human Resources Department, or the individual appointed by the Human Resources Director as the Risk Manager.

School. The term "School" means an institution of learning, whether public or private, which offers in -person instruction in grades K through twelve (12) in those courses of study required by the California Education Code and is licensed by the State Board of Education. This definition includes all kindergarten, elementary, junior high, senior high or any special institution of learning under the jurisdiction of the State Department of Education including, but not limited to, Andersen Elementary School; Carden Hall; Corona del Mar Middle and High School; Eastbluff Elementary School; Ensign 6-28

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Intermediate School; Harbor Day School; Harbor View Preschool and Elementary School; Lincoln Elementary School; Mariners Elementary School; Newport Christian Academy; Newport Coast Preschool and Elementary School; Newport Preschool & Elementary School; Newport Harbor High School; Newport Heights Elementary School; Our Lady Queen of Angels Catholic School; Pacifica Christian High School; and Sage Hill High School.

State. The term "State" means the State of California.

Streets. The term "street" means and includes all streets, roads, highways, avenues, lanes, alleys, courts, boulevards, places, squares, curbs, or other public ways in this City, which have been or may hereafter be dedicated and open to public use, or such other public property so designated in any law of this State.

Tenant, Occupant. The term "tenant or occupant" applied to a building or land means and include any person who occupies the whole or part of such building or land, whether alone or with others.

Utilities Director. The term "Utilities Director" means the individual who manages and directs the City's Utilities Department.

Section 34: Chapter 1.10 (Judicial Review of City Decisions) of Title 1 of the Code is hereby added to read as follows:

Chapter 1.10

JUDICIAL REVIEW OF CITY DECISIONS
Sections:

1.10.010 Applicability of Cal. Civ. Proc. Section 1094.6.

1.10.020 - Notice of Time Limit for Review.

1.10.010 Applicability of Cal. Code of Civ. Proc. Section 1094.6.

Cal. Civ. Proc. Section 1094.6 is applicable to the decisions of the City Council, and of any department, board, commission, officer or agent of the City revoking or denying an application for a permit, license or other entitlement or denying an application or allowance which is subject to the judicial review pursuant to Cal. Civ. Proc. Section 1094.5.

1.10.020 - Notice of Time Limit for Review.

The City Council, and any department, board, commission, officer, agent or employee of the City that makes a decision subject to Cal. Civ. Proc. Section 1094.5, shall give 6-29

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notice to the affected party of the time to seek judicial review in accordance with Cal.

Civ. Proc. Section 1094.6.

Section 35: The Table of Contents for Chapter 1.12 (Citations and Warrants) for Title 1 (General Provisions) of the Code is hereby amended to read as follows:

Chapter 1.12

CITATIONS AND WARRANTS
Sections:

1.12.010 Chapter 5c of Penal Code Adopted by Reference.

1.12.020 Authority of Public Officers or Employees to Issue Citations.

1.12.030 Violation of Promise to Appear.

Section 36: Section 1.12.010 (Chapter 5c of Penal Code Adopted by Reference) of Chapter 1.12 (Citations and Warrants) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:

1.12.010 Chapter 5c of Penal Code Adopted by Reference.

Except as provided in this chapter, the provisions of Cal. Pen. Code Part 2, Title 3, Chapter 5c, are hereby adopted and made a part of this chapter as though fully set forth. The peace officer employees of the City are authorized to issue infraction citations for violations of this Code as an alternative to their existing authority to issue citations and arrest for misdemeanors."
Section 37: Section 1,12.020 (Authority of Public Officer or Employees to Issue Citations) of Chapter 1.12 (Citations and Warrants) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:
"Section 1.12.020 Authority of Public Officers or Employees to Issue Citations.

A. The following designated public officers and employees shall have the power to issue citations for any violation of this Code:

1. Animal Control Officers, Community Service Officers, Custody Officers, Parking Control Officers, Police Officers and employees holding positions in the Police Department designated by the Police Chief.
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2. The Community Development Director, Harbormaster, Public Works Director, and employees holding positions in these departments designated by the director of the department.

3. Code Enforcement Officers.

4. Municipal Compliance Officers who may be employed by contract.

B. The following designated public officers and employees shall have the power to issue citations for violations of the following provisions of this Code:

1. The Fire Chief and other employees holding positions in the Fire Department designated by the Fire Chief shall have the power to issue citations for any violation of Titles 5, 9, 11 and 17, Chapters 7.04, 7.16, 7.20, and 7.30, and Sections 6.04.050,

6.04.190 and 10.06.010.

2. The Revenue Manager and other employees holding positions in the Finance Department designated by the Finance Director shall have the power to issue citations for any violations of Titles 3, 5, 6 and 10, Chapters 12.62 and 12.63, and Section

12.40.060.

3. The Building Official, and other employees holding positions in the Building Division designated by the Building Official, shall have the power to issue citations for any violation of Title 15 of this Code.

4. Park Patrol Officers shall have the power to issue citations for violations of Chapters 11.03 and 11.04 of this Code and for violations of any provision of this Code occurring in parks or parking violations occurring in parking lots servicing parks and other City facilities.

5. The City Clerk shall have the power to issue administrative citations for violations of Chapter 1.28.

C. The following designated public officers and employees shall have the power to issue citations for violations of the following provisions of state or local law:

1. Animal Control Officers, Community Services Officers, Custody Officers, Police Officers, and Parking Control Officers, and other employees holding positions in the Police Department designated by the Chief of Police shall have the power to issue citations for violations of Cal. Veh. Code, to the maximum extent allowed under State law, including, but not limited to, Cal. Veh. Section 22507.8 and local ordinances and resolutions adopted pursuant to Cal. Veh. Section 22511.7. 6-31

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2. The Fire Chief, Public Works Director and Harbormaster and other employees holding positions in these departments designated by them, shall have the power to issue citations for any violation of Sections 22500.1 and 22514 of the Cal. Vehicle Code, the Cal. Fish & G. Code, Title 14 of the California Code of Regulations, and the provisions of Cal. Harb. & Nay. Code, Division 3, any provision of State or local law related to fire suppression or fire prevention and any provision of State and local laws pertaining to the handling, use, storage or disposal of hazardous materials or waste.

D. The City Clerk shall be informed, in writing, by the Police Chief, Fire Chief, Harbormaster, or Department Director of all positions authorized to issue citations pursuant to this section and the City Clerk shall maintain a list of all positions designated pursuant to this section. The City Clerk shall provide a copy of the designated position list to the public upon request.

E. Nothing in this section shall be considered to limit any authority otherwise vested in the named officers and employees, provided elsewhere in this Code, or by State law." Section 38: Subsection (F) of Section 1.25.010 (Purpose and Findings) of Chapter 1.25 (Municipal Election Campaign Contributions and Expenditure Control) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:
"F. The contribution limitations imposed by this chapter are consistent with the spirit, intent and letter of the Political Reform Act of 1974 (Cal. Gov. Code, Sections 81000, et seq.)."
Section 39: Section 1.25.015 (Intent) of Chapter 1.25 (Municipal Election Campaign Contributions and Expenditure Control) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:

1.25.015 Intent.

The intent of this chapter is to impose limits on the amount of money that may be contributed to a candidate or candidate's controlled committee to achieve the purposes specified in Section 1.25.010. This chapter is not intended, and shall not be construed, to establish any reporting, filing, or procedural requirement in addition to, or different from, the Political Reform Act or the regulations adopted by the FPPC, being 2 CCR Section 18104 et seq.)."
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Section 40: Section 1.25.030 (Campaign Contributions —Limitations) of Chapter

1.25 (Municipal Election Campaign Contributions and Expenditure Control*) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:
"1.25.030 Campaign Contributions —Limitations.

A. Contributions by Persons to Candidate or Candidate's Controlled Committee. No person shall knowingly and willfully contribute to a candidate and/or the candidate's controlled committee, with respect to any single election, an amount that would cause the total contributed by such person to the candidate and the candidate's controlled committee, when combined, to exceed one thousand four hundred dollars ($1,400.00).

B. Acceptance or Solicitation by Candidate or Candidate's Controlled Committee. No candidate or candidate's controlled committee shall knowingly and willfully solicit or accept any contribution from any person, which would cause the total amount contributed by such person, with respect to any single election, to the candidate and the candidate's controlled committee, when combined, to exceed the sum of one thousand four hundred dollars ($1,400.00).

C. Adjustment for Cost -of -Living Changes. The campaign contribution limits, and contribution acceptance and solicitation limits set forth in subsections (A) and (B) of this section shall be automatically adjusted in two-year intervals, beginning July 1, 2025.

The time period for calculating the increase to the contribution limit shall be from March two years prior to an adjustment to March of the year of adjustment in accordance with Section 1.08.105. Adjustments made pursuant to this subsection shall be rounded to the nearest one hundred dollars ($100.00), shall be announced by the City Clerk in June of the year an adjustment is to be made, and shall be effective July 1 st.

D. Demand for Return of Excess Contributions. It shall not be a violation of subsection (A) of this section if the person: (1) first became aware the person violated the limitations set forth in subsection (A) of this section when the person received a return of the excess contribution(s) from the candidate or candidate's controlled committee; or (2) if the person demands, in writing, a return of the portion of any contribution(s) donated in excess of the limitations imposed by subsection (A) of this section within fourteen (14) days from the date the City provides written notice to the person of the alleged violation of subsection (A) of this section or the date the person discovers that the person's contribution(s) exceed the contribution limit set forth in subsection (A) of this section, whichever is sooner. A copy of the written notification by the person demanding the return of the portion of any contribution(s) donated in excess of the limitations imposed by subsection (A) of this section shall be provided via certified mail or courier delivery to the last known address of the candidate or the candidate's controlled committee. If the excess contributions were not returned by the candidate or candidate's controlled committee prior to sending the written demand, the person shall 6-33

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provide the City Clerk with a copy of the written demand, and proof of delivery thereof, within fourteen (14) days of the date the demand is made.

E. Return of Excess Contributions. It shall not be a violation of subsection (B) of this section if the candidate or candidate's controlled committee returns the portion of any contribution(s) donated in excess of the limitations imposed by subsection (B) of this section within fourteen (14) days from the date the City provides written notice to the candidate or candidate's controlled committee of the alleged violation of subsection (B) of this section or the date the candidate or candidate's controlled committee discovers that the contribution(s) exceed the contribution limit set forth in subsection (B) of this section, whichever is sooner. If the City notified the candidate or candidate's controlled committee that the contributions exceeded the limitations imposed by subsection (B) of this section, written notification showing the donor's name, the amount returned, and the date of the return shall be provided to the City Clerk within fourteen (14) days of the date of the return.

F. Contributions by Candidates. The provisions of subsections (A) and (B) of this section shall not apply to contributions from a candidate to his or her controlled committee nor to the expenditure, by the candidate, of his or her personal funds.

G. Contributions to Committees. Contributions made to any person or a committee, and not to a candidate or candidate's controlled committee, shall not be considered as contributions to the candidate or candidate's controlled committee notwithstanding the fact that such person or committee supports the candidate or uses the contribution with a view to bring about the nomination or election of the candidate.

H. Anonymous Contributions. No candidate or candidate's controlled committee shall knowingly and willfully accept anonymous contributions, with respect to any single election, which would cause the total amount of anonymous contributions received by the candidate and the candidate's controlled committee, when combined, to exceed one hundred dollars ($100.00). Subject to the provisions of State law, it shall not be a violation of this subsection if the candidate or candidate's controlled committee pays to the City, for deposit into the general fund to be used to defray the costs of municipal elections, the portion of any contributions accepted in excess of the limitations imposed by this subsection within fourteen (14) days from the date the City provides written notice to the candidate or candidate's controlled committee of the alleged violation of this subsection or within fourteen (14) days of the date the candidate or candidate's controlled committee discovers the contribution(s) exceed the contribution limit set forth in this subsection, whichever is sooner.

I. Notice from the City. For purposes of this section, written notification by the City shall be by certified mail to the person to be notified at the person's last known address.

Service by certified mail shall be deemed completed at the time of deposit with the post office.
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J. City Clerk. If the City Clerk has a good faith belief that a person, candidate, or candidate's controlled committee has violated this section, the City Clerk shall refer the matter to the District Attorney.

K. Recall Elections.

1. The campaign contribution limits set forth in this section shall not apply to any Councilmember or Councilmember's controlled committee established to oppose the qualification of a recall measure and, if the qualification is successful, the recall election after the Councilmember receives a notice of intent to recall pursuant to Cal. Elec. Code Section 11021.

2. The campaign contribution limits set forth in this section shall apply to any candidate running to replace the Councilmember in a recall election.

3. After the failure of a recall petition or after the recall election, any remaining funds received by the Councilmember or Councilmember's controlled committee established to oppose the qualification of a recall measure and if the qualification is successful, the recall election, shall be treated as surplus funds and shall be expended within sixty (60) days after the failure of the recall petition or after the recall election for a purpose specified in Cal. Elec. Code Section 89519 (b)." Section 41: Section 1.26,010 (Definitions) of Chapter 1.26 (Electronic Filing of Campaign Disclosure Statements) of Title 1 of the Code is hereby amended to read as follows..

1.26.010 Definitions.

Unless otherwise defined below, the terms used in this chapter shall have the same definitions as specified in the Political Reform Act (Cal. Gov. Code Section 81000 et seq.) and FPPC regulations (2 CCR Section 18104 et seq.). In those cases where definitions in the Political Reform Act or FPPC regulations contain a specific reference to any State election, candidate, or electoral criteria, the definition shall be modified to reflect the municipal equivalent, or, in the absence of a municipal equivalent, to delete the specific reference.
"City Clerk's online system" means the web -based filing system utilized by the Newport Beach City Clerk's Office for the submission of statements, reports or other documents required by Chapter 4 of the Political Reform Act (Cal. Gov. Code Section 84100 et seq.).
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"Statements" means statements, reports, or other documents required by Chapter 4 of the Political Reform Act (Cal. Gov. Code Section 84100 et seq.).

Section 42: Subsections (A) and (C) of Section 1.26.020 (General) of Chapter

1.26 (Electronic Filing of Campaign Disclosure Statements) of Title 1 of the Code are hereby amended to read as set forth below:

Subsection (A) of Section 1.26.020 shall read as set forth in the quotations below:
"A. Any elected officer, candidate, or committee required to file original statements with the City Clerk's Office may file such statements using the City Clerk's online system according to procedures established by the City Clerk. These procedures shall ensure that the online system complies with the requirements set forth in Cal. Gov.

Code Section 84615. Elected officers, candidates and committees required to file original statements with the City Clerk shall file such statements using the City Clerk's online system, unless exempt from the requirement to file online pursuant to Cal. Gov.

Code Section 84615, because the officer, candidate or committee receives less than two thousand dollars ($2,000.00) in contributions and makes less than two thousand dollars ($2,000.00) in expenditures in a calendar year." Subsection (C) of Section 1.26.020 shall read as set forth in the quotations below:
"C. The City Clerk's online system shall only accept a filing in the standardized record format that is developed by the California Secretary of State pursuant to Cal.

Gov. Code Section 84602(a)(3), and that is compatible with the Secretary of State's system for receiving an online or electronic filing."
Section 43: Section 1.26.030 (Procedures for Utilizing Online Filing) of Chapter

1.26 (Electronic Filing of Campaign Disclosure Statements) of Title 1 of the Code is hereby amended to read as set forth in the quotations below:
"1.26.030 Procedures for Utilizing Online Filing.

A. Any elected officer, candidate, or committee who has electronically filed a statement using the City Clerk's online system is not required to file a copy of that document in paper format with the City Clerk.

B. Any elected officer, candidate, or committee who is required to file an original statement with the California Secretary of State and a copy of that statement with the City Clerk's Office may, but is not required to, file the copy of the required statement using the City Clerk's online system.
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C. The City Clerk's online system shall issue an electronic confirmation that notifies the filer that the statement was received, which notification shall include the date and the time that the statement was received and the method by which the filer may view and print the data received by the City Clerk. The date of filing for a statement filed online shall be the day that it is received by the City Clerk.

D. If the City Clerk's online system is not capable of accepting a statement, an elected officer, candidate, or committee shall file that statement in paper format with the City Clerk.

E. The City Clerk's online system shall enable electronic filers to complete and submit filings free of charge."
Section 44: Subsection (F) of Section 1.28.020 (Definitions) of Chapter 1.28 (Lobbyist Registration and Reporting) of Title 1 of the Code is hereby deleted in its entirety.

Section 45: The Table of Contents for Chapter 2.08 (City Manager) of Title 2 of the Code is hereby amended to read as follows:
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Chapter 2.08

CITY MANAGER
Sections:

2.08.010 Establishment Authority.

2.08.020 Bond for Manager Pro Tempore.

2.08.030 Compensation —Expenses.

2.08.040 Powers and Duties.

2.08.060 Subject to Civil Service Provisions.

Section 46: Section 2.08.030 (Compensation -- Expenses) of Chapter 2.08 (City Manager) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
"2.08.030 Compensation —Expenses.

In addition to the compensation fixed by the City Council, the City Manager shall be reimbursed for all sums necessarily incurred or paid by the City Manager in the performance of the City Manager's duties within the amounts fixed in the budget for such purposes and for the City Manager's expenses incurred when traveling on business pertaining to the City under the direction of the City Council." Section 47: Subsections (B), (D), (E), (1) and (K) of Section 2.08,040 (Powers and Duties) of Chapter 2.08 (City Manager) of Title 2 of the Code are hereby amended to read as set forth below:

Subsection (B) of Section 2.08.040 shall read as set forth in the quotations below:
"B. To consolidate or combine duties, offices, positions, departments or units under the City Manager's direction within the limits established by the City Charter, this Code, or the annual budget, and subject to City Council approval; provided, however, that nothing herein contained shall be construed to supersede the authority of the Civil Service Board in the matter of classification of City officers or employees subject to Civil Service or prohibit the City Manager from authorizing the Assistant City Manager to perform the duties of a Department Director for a limited term;" Subsections (D) and (E) of Section 2.08.040 shall read as set forth in the quotations below.-
"D. To recommend to the City Council for adoption such measures and ordinances as the City Manager deems necessary or expedient;
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E. To make investigations into the affairs of the City, and any department or division thereof under the City Manager's direction and control;" Subsection (1) of Section 2.08.040 shall read as set forth in the quotations ,below:

I. To avoid all activities outside the City government which are inconsistent with the policies of the City Council or the duties of the City Manager's office;" Subsection (K) of Section 2.08.040 shall read as set forth in the quotations below:

X. To perform such other duties and exercise such other powers as may be delegated to the City Manager from time to time by ordinance or resolution of the City Council." Section 48: Section 2.08.050 (Removal) of Chapter 2.08 (City Manager) of Title 2 of the Code is hereby deleted in its entirety.

Section 49: Section 2.12.030 (Community Development Department) of Chapter 2.12 (Administrative Departments) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
"2.12.030 Community Development Department.

The Community Development Department shall be under the supervision of the Community Development Director. The functions of the Community Development Department shall include:

A. Administration and enforcement of the provisions of this Code relating to planning, zoning and subdivisions, nuisance abatement and Code enforcement, and advising and assisting the Planning Commission in such administration vested in that Commission; B. Administration and enforcement of the building, electrical, plumbing and mechanical codes, including grading and swimming pool regulations; C. Administration and enforcement of State regulations governing energy conservation and sound transmission;
D. Preparation and presentation of reports to the City Council and the Planning Commission on various aspects of City planning;
E. Preparation and maintenance of the General Plan;
F. Advising the public on zoning and planning matters;
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G. Receipt and processing of subdivision maps; and
H. Such other functions as may be delegated by the City Manager or the City Council."
Section 50: Section 2.12.040 (Finance Department) of Chapter 2.12 (Administrative Departments) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
"2.12.040 Finance Department.

The Finance Department shall be under the supervision of the Finance Director, who shall have charge of financial affairs of the City. The financial functions of the Finance Department, in addition to those duties imposed by the City Charter, shall include:

A. Enforcement of the City's business license and transient occupancy tax regulations;
B. Management of the City's finances, financial statements, audits, revenue collection and billing, financial management system budget, payroll, accounting, cashiering, treasury and investments;
C. Purchase of supplies, equipment, training, and services used by City departments; D. Disposal of obsolete and surplus City property;
E. Management of the City's parking program, including meters and lots; and F. Such other functions as may be delegated by the City Manager or the City Council." Section 51: Section 2.12.050 (Fire Department) of Chapter 2.12 (Administrative Departments) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
°2.12.050 Fire Department.

The Fire Department shall be under the supervision of the Fire Chief. The functions of the Fire Department shall include:

A. Administration.

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1. Ensure fulfillment of the Fire Department mission through planning, preparation, designation of funding, and securing of equipment and materials required to support personnel, operations, and programs.

2. Prepare residents for disasters and emergencies through community preparedness programs.

B. Prevention,

1. Identify and prevent hazards to life, health, property and the environment.

2. Apply and enforce California State laws and local ordinances.

3. Plan and prepare City staff and residents to address potential disasters.

C. Operations.

1. Respond to and mitigate all threats to life, health, property and the environment.

2. Provide training and education to support expertise and safe operations.

3. Monitor for quality assurance.

D. Lifeguards.

1. Respond to and mitigate all threats to life and health on the City beaches and waterways.

2. Provide training and education to support expertise and safe operations.

E. Collaborate with the Orange County Harbor Patrol and/or the U.S. Coast Guard to prevent and/or respond to accidents of a marine nature within the City limits or contiguous unincorporated territory under County contractual agreements.

F. Such other functions as may be delegated by the City Manager or the City Council."
Section 52: Subsection (A) of Section 2.12.060 (Human Resources Department) of Chapter 2.12 (Administrative Departments) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
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"A. Establishment and maintenance of the City's personnel policies, employee classifications and compensation policies and other conditions of employment to assist the City Manager in carrying out the provisions of Chapters 2.24 and 2.28 of this Code;" Section 53: Section 2.12.080 (Utilities Department) of Chapter 2.12 (Administrative Departments) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
"2.12.080 Utilities Department.

The Utilities Department shall be under the supervision of the Utilities Director. The functions of the Utilities Department shall include.

A. Maintenance and operation of the City water system;
B. Maintenance and operation of the City sewer system;
C. Maintenance and operation of the City's street sweeping program; D. Maintenance and operation of the City's storm drain system; E. Maintenance and operation of the City street lighting system; F. Management of the City's oil and gas operations;
G. Management of the regulations found in Chapter 14; and H. Such other functions as may be delegated by the City Manager or the City Council."
Section 54: Section 2.12.100 (Public Works Department) of Chapter 2.12 (Administrative Departments) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
"2.12.100 Public Works Department.

The Public Works Department shall be under the supervision of the Public Works Director who shall also be the City Engineer Pro Tem. The functions of the Public Works Department shall include:

A. Planning, installation, design, preparation, review and approval of plans, specifications and working details, operations and maintenance, and administration of 6-42

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contracts for the construction of public works, including streets, storm drains, water quality sewers, water, harbors, street lighting, traffic signals and other public facilities; B. Right-of-way acquisition;
C. Subdivision engineering and development services;
D. Traffic engineering services;
E. Engineering services for other City departments;
F. Engineering planning for water, sewer and electrical systems; G. Water quality inspections and reporting as required by law; H. Activities over and management of the City's tidelands assets in Upper and Lower Newport Bay;
I. Street and beach cleaning;
J. Administration and enforcement of State regulations and provisions of this Code related to the collection, transport, diversion and disposal of solid waste; K. Maintenance and repair of streets, alleys, curbs, sidewalks, storm drains, bridges, piers, bulkheads and floats;
L. Maintenance and repair of City equipment;
M. Signage and carpentry;
N. Street striping, and barricade, curb, crosswalk, parking stall, and pavement painting;
O. Street name and regulation sign posting maintenance; P. Custodial maintenance and minor repair services for City -owned and occupied buildings and facilities;
Q. Landscaping and maintenance of City parks, parkway trees, and planted areas on City -owned property, easements and rights -of -way;
R. Maintenance of electrical equipment in City buildings; and S. Such other functions as may be delegated by the City Manager or the City Council."
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Section 55: Section 2.12.120 (Harbor Department) of Chapter 2.12 (Administrative Departments) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
"2.12.120 Harbor Department.

The Harbor Department shall be under the supervision of the Harbormaster who shall serve as the head of the Department. The functions of the Harbor Department shall include:

A. Management of the City's resources in Newport Harbor, including administration of Title 17;
B. Operation of a headquarters at Marina Park or other location selected by the City Manager;
C. Patrol of Newport Harbor;
D. Provision of code enforcement on the waters of Newport Harbor; E. Management of the City's marinas, moorings, docks, wharfs and visitor -serving harbor facilities and amenities;
F. Promotion of harbor and boating safety;
G. Addressing inquiries from residents and visitors regarding Newport Harbor; H. Management of City -owned marinas;
Providing staff to act as the liaison to the City's Harbor Commission; J. Management of a pollution prevention program in Newport Harbor; and K. Such other functions as may be delegated by the City Manager." Section 56: The Table of Contents for Chapter 2.20 (Emergency Services) of Title 2 of the Code is hereby amended to read as follows:

Chapter 2.20
EMERGENCY SERVICES*
Sections:

Ordinance No. 2023-

2,20.00E Prior History Note for Chapter 2.20.

2.20.010 Purpose.

2.20.020 Emergency Defined.

2.20.030 Disaster Council —Members.

2.20.040 Disaster Council —Powers.

2.20.050 Emergency Operations Plan.

2.20.060 Director and Assistant Director of Emergency Services —Powers and Duties.

2.20.065 Review and Termination of Proclamation of Emergency.

2.20.070 Director —Assistant Director —Emergency Powers.

2.20.080 Emergency Organization.

2.20.090 Expenditures.

2.20.100 Violation.

Section 57: Section 2.20.010 (Purpose) of Chapter 2.20 (Emergency Services) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
"2.20.010 Purpose.

The purpose of this chapter is to provide for the preparation and implementation of plans for the protection of persons and property within the City in the event of an emergency, to empower certain City officials and staff to promulgate orders and regulations necessary to provide for the protection of life and property or to preserve public order and safety, and to provide for the coordination of the emergency service functions of this City with all other public agencies and affected private persons, corporations, and organizations. This article is intended to comply with the California Emergency Services Act, Cal. Gov. Code Section 8550 et. seq." Section 58: Section 2.20.020 (Emergency Defined) of Chapter 2.20 (Emergency Services) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
"2.20.020 Emergency Defined.

As used in this article, the terms state of emergency, local emergency, and state of war emergency shall have the same meanings as in Cal. Gov. Code Section 8558. The term `emergency' shall mean a state of emergency, local emergency, and state of war emergency."
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Section 59: Section 2.20.030 (Disaster Council —Members) of Chapter 2.20 (Emergency Services) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
"2.20.030 Disaster Council —Members.

The City of Newport Beach Disaster Council is hereby created and shall consist of the following members:

A. The Mayor, who shall be the chair, or in the Mayor's absence, the Mayor Pro Tempore;
B. The remaining members of the City Council; and
C. Other officers and employees of the City, and representatives of civic, business, labor, veterans, professional, or other organizations within the community, as may be appointed by the chair, subject to confirmation by the City Council." Section 60: Section 2.20.040 (Disaster Council —Powers) of Chapter 2.20 (Emergency Services) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
"2.20.040 Disaster Council —Powers.

The Disaster Council is empowered to review, and recommend for adoption by the City Council, emergency and mutual aid plans and agreements and such ordinances, resolutions, rules, and regulations as are necessary to implement these plans and agreements, and to perform such other functions as may be designated in the emergency operations plan. The Disaster Council shall meet upon call of the Mayor or in his or her absence the Mayor Pro Tempore or the City Manager." Section 61: Section 2.20.050 (Emergency Operations Plan) of Chapter 2.20 (Emergency Services) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
"2.20.050 Emergency Operations Plan.

The City Council has adopted an emergency operations plan that provides for the effective mobilization of all of the resources of the City, both public and private, to meet any condition constituting an emergency. The Disaster Council shall periodically review the plan and propose, to the City Council, changes which will ensure the maximum effectiveness of the plan. The plan shall be considered supplementary to this chapter, • 1 •

Ordinance No. 2023-

but shall have the effect of law whenever an emergency, as provided in this chapter, has been proclaimed."
Section fit: Section 2.20.060 (Director and Assistant Director of Emergency Services --Powers and Duties) of Chapter 2.20 (Emergency Services) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
"2.20.060 Director and Assistant Director of Emergency Services —Powers and Duties.

When there is an emergency within the territorial limits of the City or which may impact the City, the Director of Emergency Services, who shall be the City Manager, and Assistant Director of Emergency Services, who shall be appointed by the Director shall have the following powers and duties:

A, Request the City Council proclaim the existence or threatened existence of a local emergency if the Council is in session. The Director or Assistant Director may issue such a proclamation if the Council is not in session, and in such event, the City Council shall take action to ratify the proclamation at the earliest practicable time, but in no event more than seven (7) days after issuance of the proclamation or the proclamation shall have no further force or effect;
B. Request the Governor proclaim a state of emergency when, in the opinion of the Director or Assistant Director, resources available locally are inadequate to cope with the emergency;
C. Control and direct the efforts of the emergency organization of the City to accomplish the purposes of this chapter including, but not limited to, training of employees for emergency and disaster -related functions, disseminating to the public information related to emergency preparedness activities, and recommending to the City Council the adoption of mutual aid agreements;
D. Direct cooperation between, and coordination of, the services and staff of the emergency organization of the City and resolve questions of authority and responsibility that may arise between them;
E. Represent the emergency organization of the City in all dealings with public or private agencies pertaining to emergencies as defined in this chapter; and F. Prepare and maintain, on a current basis, the emergency operations plan as provided, and described, in this chapter, and submit the plan to the Disaster Council." 6-4 7

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Section 63: Section 2.20.065 (Review and Termination of Proclamation of Emergency) of Chapter 2.20 (Emergency Services) of Title 2 of the Code is hereby added to read as set forth in the quotations below:
"2.20.065 Review and Termination of Proclamation of Emergency The City Council shall review the need for continuing the local emergency at least once every 60 days until the governing body terminates the local emergency. The City Council shall proclaim the termination of the local emergency at the earliest possible date that conditions warrant."
Section 64: Section 2.20.070 (Director —Assistant Director —Emergency Powers) of Chapter 2.20 (Emergency Services) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
"2.20.070 Director --Assistant Director —Emergency Powers.

In the event of the proclamation of an emergency which impacts the City, or which may impact the City, the Director is empowered, within limitations specified in the City Charter, to do the following:

A. Make, issue, and enforce rules, orders or regulations reasonably related to the protection of life and/or property, or the preservation of public order and safety, which orders shall not apply to the Disaster Council or Disaster Service Workers when they are working in their official capacity. These rules, orders and regulations shall include, but not be limited to, any one or more of the following:

1. An order imposing a curfew within the entire City, or designated boundaries.

The order imposing the curfew shall prohibit the presence of any person on any public highway, sidewalk or place, and may prohibit presence in any outdoor place, public or private,

2. An order prohibiting access to, travel along, or egress from any public or private street, highway or road within the City,

3. An order prohibiting or restricting the sale of alcoholic beverages in or from any business in all or a portion of the City;
B. All rules, orders and regulations made and issued pursuant to this chapter, and any amendment or rescission thereof, shall be in writing and given widespread publicity and notice. No rule, order or regulation issued pursuant to this chapter shall be effective unless and until widespread publicity and notice have been given, and, in the case of any curfew order, such order shall not be effective until notice of the curfew order has I -:

Ordinance No. 2023-

been given within the boundaries of the area subject to the curfew by mobile sound trucks or vehicles equipped with public announcement systems. Rules, orders and regulations issued pursuant to this chapter shall remain in effect for the period specified in the declaration of emergency, but no rule, order or regulation shall remain in effect for more than seven (7) days unless confirmed and ratified by the City Council. All rules, orders and regulations issued pursuant to this chapter shall be ratified and confirmed at the earliest practicable time by the City Council, but in no event shall confirmation and ratification occur more than seven (7) days after issuance. Prior to confirmation and ratification, the Director or Assistant Director shall provide the City Council with the written emergency proclamation, all other related documents, and a report explaining the facts and circumstances which prompted the emergency proclamation and issuance of emergency rules, orders and regulations;
C. To obtain vital services, supplies, equipment and such other properties found lacking and needed for the protection of the life and property, and to bind the City to pay fair market value for the goods and services, and if required immediately, to commandeer the same for public use, within the confines of the City Charter and State law;
D. To require emergency services of any City officer or employee, and to requisition the necessary City material, and in the event of the proclamation of extreme emergency by the Governor, in the region in which this City is located, to request the aid of as many citizens of this community as the Governor deems necessary in the execution of these duties. Such person shall be entitled to all privileges, benefits and immunities as provided by State law for registered emergency services and disaster workers and volunteers;
E. Exercise all ordinary powers of the City Manager, as well as all special powers conferred upon the Manager by this chapter, by any provision of State or local law, by any agreement approved by the City Council, by the emergency operations plan then in effect, or special power vested in City by any other lawful authority; and F. Designate the order of succession to the office of Director of Emergency Services to take effect in the event the Director, and Assistant Director, are unavailable to take appropriate action pursuant to the provisions of this chapter. The order of succession shall be approved by the City Council and shall be specified in the emergency operations plan."
Section 65: Section 2.20.100 (Violation) of Chapter 2.20 (Emergency Services) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
°2.20.100 Violation.

No person during an emergency shall;

Ordinance No. 2023-

A. Willfully obstruct, hinder, or delay any member of the Emergency Organization in the enforcement of any lawful order, rule or regulation issued pursuant to this chapter, or in the performance of any duty imposed upon the member by virtue of this chapter; B. Do any act forbidden by any lawful rules or regulations issued pursuant to this chapter, or to imperil the lives or property of inhabitants of this City, or to prevent, hinder, or delay the defense or protection thereof; or
C. Wear, carry or display, without lawful authority, any means of identification specified by the emergency agency of the State or the City." Section 66: Section 2.20.110 (Severability) of Chapter 2.20 (Emergency Services) of Title 2 of the Code is hereby deleted in its entirety.

Section 67: Section 2.24.010 (Definitions) of Chapter 2.24 (Civil Service System) of Title 2 of the Code is hereby amended to delete the following definitions:

City. The term "City" shall mean the City of Newport Beach.

City Charter. The term "City Charter" shall mean the City Charter of the City of Newport Beach.

City Council. The term "City Council" shall mean the City Council of the City of Newport Beach.

Section 68: Subsection (D) of Section 2.24.060 (Responsibilities and Authority of City Manager) of Chapter 2.24 (Civil Service System) of Title 2 of the Code is hereby deleted in its entirety.

Section 69: Section 2.24.100 (Selection of Fire and Police Chiefs) of Chapter

2.24 (Civil Service System) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
"2.24.100 Selection of Fire and Police Chiefs.

The selection of the Police Chief and Fire Chief shall be made by the City Manager from among the candidates who meet the minimum qualifications for the class after completion of a qualifications' appraisal process. The City Manager shall screen applicants for the minimum qualifications for the class. The top candidates who meet the minimum qualifications shall be examined in a qualifications' appraisal process established by the City Manager. The City Manager shall appoint a member, or 6-50

Ordinance No. 2023-

members, of the Board to serve on a qualifications' appraisal panel within the qualifications' appraisal process. The City Manager shall choose a candidate from the eligibility list for the class compiled after completion of the qualifications' appraisal process."
Section 70: The Table of Contents for Chapter 2.28 (Personnel Policy, Compensation Plan) of Title 2 of the Code is hereby amended to read as follows:

Chapter 2.28

PERSONNEL POLICY, COMPENSATION PLAN
Sections:

2.28.010 Establishment of Classifications and Salary Ranges.

2.28.020 Uniform Personnel Policies.

Section 71: Section 2,28.030 (Annual Review by City Manager) of Chapter 2.28 (Personnel Policy, Compensation Plan) of Title 2 of the Code is hereby deleted in its entirety.

Section 72: The Table of Contents for Chapter 2.30 (Recycling Service Fee) of Title 2 of the Code is hereby amended to read as follows:

Chapter 2.30

RECYCLING SERVICE FEE
Sections:

2.30.010
Short Title.

2.30.020
Findings and Purpose.

2.30.030
Authority.

2.30.040
Responsibility.

Section 73: Section 2.30.050 (Severability) of Chapter 2.30 (Recycling Service Fee) of Title 2 of the Code is hereby deleted in its entirety.

Section 74: Section 2.32.020 (Duties of City Traffic Engineer) of Chapter 2.32 (Traffic Division and Engineer) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
"2.32.020 Duties of City Traffic Engineer.
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It shall be the general duty of the City Traffic Engineer to determine and approve the planning, design, installation and proper timing and maintenance of traffic control devices and signals, to conduct engineering analysis of traffic accidents and to devise remedial measures, to conduct engineering investigation of traffic conditions and to cooperate with other City officials in the development of ways and means to improve traffic conditions."
Section 75: The Table of Contents for Chapter 2.36 (Peace Officer's Training) of Title 2 of the Code is hereby amended to read as follows:

Chapter 2.36

PEACE OFFICER'S TRAINING
Sections:

2.36.010 State Aid for Training —Adherence to Standards.

Section 76: Section 2.36.010 (State Aid for Training —Adherence to Standards) of Chapter 2.36 (Peace Officer's Training) of Title 2 of the Code is hereby amended to read as set forth in the quotations below:
"2.36.010 State Aid for Training —Adherence to Standards.

The City Council declares that it desires the City to qualify to receive aid from the State under the provisions of Cal. Pen. Code Sections 13500-13553.

Pursuant to Cal. Pen Code Sections 13510 and 13522, the City, while receiving aid from the State, will adhere to the standards for recruitment and training established by the Commission on Peace Officer Standards and Training.

Pursuant to Cal. Pen Code Section 13512, the Commission and its representatives may make such inquiries as deemed appropriate by the Commission to ascertain that the City's peace officer and public safety dispatch personnel adhere to the standards for selection and training established by the Commission on Peace Officer Standards and Training."
Section 77: Section 2.36.020 (State Aid —Article 3—Adherence to Standards) of Chapter 2.36 (Peace Officer's Training) of Title 2 of the Code is hereby deleted in its entirety.
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Section 78: The Table of Contents for Title 3 (Revenue and Finance) of the Code is hereby amended to read as follows:

Title 3

REVENUE AND FINANCE
Chapters:

3.04 Sales and Use Tax

3.08 Property Tax

3.12 Property Development Tax

3.16 Uniform Transient Occupancy Tax

3.20 Gasoline Tax

3.22 Real Property Transfer Tax

3.27 Municipal Facilities Revenue Bond Code

3.28 Visitor's Service Fee

3.30 Air Quality Improvement Trust Fund

3.32 Special Improvement District Financing Code

3.33 Assessment District Alternative Procedures

3.34 Marine Charter Passenger Tax

3.36 Cost Recovery For User Services
Section 79: The Table of Contents for Chapter 3.04 (Sales and Use Tax) of Title 3 of the Code is hereby amended to read as follows:

Sections:
3,04.010

3.04.020

3.04.030

3.04,050

3.04.060

3.04.070

3.04.080

3.04.090

3.04.100

3.04.110

3.04.140

3.04.150

3.04.170
Chapter 3.04

SALES AND USE TAX
Short Title.

Rate.

Purpose.

Sales Tax.

Place of Sale.

Use Tax.

Adoption of Provisions of State Law.

Limitations on Adoption of State Law.

Permit Not Required.

Exclusions and Exemptions —Measure of Tax.

Amendments.

Enjoining Collection Forbidden.

Severability.
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Section 80: Subsection (C) of Section 3.04.030 (Purpose) of Chapter 3.04 (Sales and Use Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below-
"C. To adopt a sales and use tax ordinance which imposes a tax and provides a measure therefor that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes." Section 81: Section 3.04.040 (Operative Date) of Chapter 3.04 (Sales and Use Tax) of Title 3 of the Code is hereby deleted in its entirety.

Section 82: Section 3.05.050 (Sales Tax) of Chapter 3.04 (Sales and Use Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.04.050 Sales Tax.

For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers in the City at the rate of one (1) percent of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in this City on and after January 1, 1974."
Section 83: Section 3.04.060 (Place of Sale) of Chapter 3.04 (Sales and Use Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.04.060 Place of Sale.

For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or the retailer's agent to an out -of -State destination or to a common carrier for delivery to an out -of -State destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the State sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations prescribed and adopted by the California Department of Tax and Fee Administration."
Section 84: Section 3.04.080 (Adoption of Provisions of State Law) of Chapter

3.04 (Sales and Use Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
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"3.04.080 Adoption of Provisions of State Law.

Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions the Cal. Rev. & Tax. Code, Division 2, Part 1.5, all of the provisions of the Cal. Rev. & Tax. Code, Division 2, Part 1, are hereby adopted and made a part of this chapter as though fully set forth herein."
Section 85: Section 3.04.090 (Limitations on Adoption of State Law) of Chapter

3.04 (Sales and Use Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.04.090 Limitations on Adoption of State Law.

In adopting the provisions of Cal. Rev. Tax. Code Division 2, Part 1, wherever the State is named or referred to as the taxing agency, the City shall be substituted therefor. The substitution, however, shall not be made when the word "State" is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the California Department of Tax and Fee Administration, the State Treasury, or the Constitution of the State of California; the substitution shall not be made when the result of that substitution would require action to be taken by or against the City, or any agency thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this chapter; the substitution shall not be made in those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the State, where the result of the substitution would be to provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Cal. Rev. Tax.

Code Division 2, Part 1, or to impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the State under the said provisions of that code; the substitution shall not be made in Cal. Rev. Tax. Code Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828; and the substitution shall not be made for the word "State" in the phrase "retailer engaged in business in this State" in Cal. Rev. Tax. Code Section 6203 or in the definition of that phrase in Cal. Rev. Tax. Code Section 6203." Section 86: Section 3.04.100 (Permit Not Required) of Chapter 3.04 (Sales and Use Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.04.100 Permit Not Required.
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If a seller's permit has been issued to a retailer under Cal Rev. & Tax. Code Section 6067, an additional seller's permit shall not be required by this chapter." Section 87: Subsection (B) of Section 3.04.110 (Exclusions and Exemptions — Measure of Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"B. The storage, use, or other consumption of tangible personal property, the gross receipts from the sale of which have been subject to tax under a sales and use tax ordinance enacted in accordance with Cal. Rev. & Tax Code Division 2, Part 1.5, by any City and County, County or City, in this State shall be exempt from the tax due under the ordinance codified in this chapter."
Section 88: Section 3.04.140 (Amendments) of Chapter 3.04 (Sales and Use Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.04.140 Amendments.

All subsequent amendments of the Cal. Rev. & Tax. Code which relate to the sales and use tax and which are not inconsistent with Cal Rev. & Tax. Code, Division 2, Part 1.5, shall automatically become a part of this chapter."
Section 89: Section 3.04.150 (Enjoining Collection Forbidden) of Chapter 3.04 (Sales and Use Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.04.150 Enjoining Collection Forbidden.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or this City, or against any officer of the State or this City, to prevent or enjoin the collection under this chapter or Cal. Rev. & Tax. Code, Division 2, Part 1.5, of any tax or any amount of tax required to be collected."
Section 90: Section 3.04.160 (Penalties) of Chapter 3.04 (Sales and Use Tax) of Title 3 of the Code is hereby deleted in its entirety.

Section 91: Section 3.04.180 (Repeals) of Chapter 3.04 (Sales and Use Tax) of Title 3 of the Code is hereby deleted in its entirety.
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Section 92: The Table of Contents for Chapter 3.08 (Property Tax) of Title 3 of the Code is hereby amended to read as follows:

Chapter 3.08

PROPERTY TAX
Sections:

3.08.010 Property Tax Duties Transferred to County.

Section 93: Section 3.08.010 (Amount of Tax to Levy) of Chapter 3.08 (Property Tax) of Title 3 of the Code is hereby deleted in its entirety and replaced with Section 3.08.010 (Property Tax Duties Transferred to County), to read as set forth in the quotations below:
°3.08.010 Property Tax Duties Transferred to County.

Pursuant to the provisions of Cal. Gov. Code, Title 5, Division 1, Part 2, Chapter 2, the City of Newport Beach hereby elects that the following duties be performed by the appropriate officers of Orange County:

A. The assessment of City property for City taxes.

B. The equalization and correction of the assessment of City taxes.

C. The collection, payment, and enforcement of the City taxes, including delinquent taxes.

D. The redemption of property from sale or other penalty for nonpayment of City taxes."
Section 94: Section 3.08.020 (Library Fund) of Chapter 3.08 (Property Tax) of Title 3 of the Code is hereby deleted in its entirety.

Section 95: Section 3.16.020 (Definitions) of Chapter 3.16 (Uniform Transient Occupancy Tax) of Title 3 of the Code is hereby amended to read as follows:

3.16.020 Definitions.
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Except where the context otherwise requires, the definitions in this section shall govern the interpretation and construction of the terms of this chapter:

City Collector. The term "City Collector" shall mean the Finance Director.

Hotel. The term "hotel" shall mean any structure, or any portion of any structure or the air space within any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes for periods of thirty (30) days or less. The term "hotel" includes any inn, residential dwelling unit, motel, group residential or lodging house, bed and breakfast inn, single room occupancy hotel, hostel, rental unit, public or private residential club, mobile home, time-share project, house trailer at a fixed location, or other structure or portion of a structure.

The term "hotel" shall also include a space, campsite or similar facility which is occupied, or intended or designed for occupancy, by a recreational vehicle, camper, van, trailer, motor home or similar vehicle used, or intended for use, as a dwelling, lodging or for sleeping purposes.

Including. The term "including" shall mean "including, without limitation" and "including, but not limited to" and shall not be interpreted to imply any limitation on the more general preceding provision unless otherwise expressly stated.

Individual. The term "individual" shall mean any natural person.

Occupancy. The term "occupancy" shall mean the use or possession, or the right to use or possession, of a specific campsite, space, area, room or rooms in any hotel for the purpose of dwelling, lodging or sleeping.

Operator. The term "operator" shall mean the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, time-share project owner's association or any other capacity. Where the operator performs the operator's functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as the principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both.

Qualifying Rental Agreement. The term "qualifying rental agreement" shall mean a written leasehold agreement signed by both the operator and transient obligating the 6-58

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transient to pay rent for use and possession of a room or space in a hotel for a period of not less than thirty-one (31) consecutive days. The qualifying rental agreement shall be legally enforceable by both the operator and transient and shall include in its terms both the right to occupy and the obligation to pay for a room or rooms for thirty-one (31) days or more. "Qualifying rental agreement" expressly excludes:

A. Any agreement, regardless of the rental term, which is terminated for any reason, by either party, or by mutual consent, prior to the thirty-first consecutive day of occupancy -,or
B. Any agreement that would be unlawful or constitute a violation of law.

Rent. The term "rent" shall mean the consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits, and property and services of any kind or nature, without any deduction. Rent shall include the consideration charged by an operator for accommodations, including any (A) un- refunded advance rental deposits or (B) separate charges levied for items or services which are part of such accommodations including, but not limited to, furniture, fixtures, appliances, linens, towels, non -coin -operated safes, utilities (such as energy surcharges) and maid service.

Time -Share Interest. The term "time-share interest" shall mean either a time-share estate or a time-share use (as those terms are defined in Cal Bus. & Prof. Code Section 11212) and any similar form of ownership involving a right in perpetuity, for life, or for a term of years, to occupy any room, space or area in a time-share project.

Time -Share Owner. The term "time-share owner" shall mean any person or entity that owns a time-share interest.

Time -Share Project. The term "time-share project" shall mean a structure or real property (including air space) in which a time-share interest has been sold.

Transient. The term "transient" shall mean 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 days or less, counting portions of days as full days. Any individual occupying space in a hotel shall be deemed to be a transient until the period of thirty (30) days has expired, and the tax imposed by this chapter shall be due upon all rent collected or accruing prior to the thirty-first consecutive day of occupancy unless occupancy extends to the thirty-first day or thereafter. The term "transient" shall not include any person who occupies any room, space or area in a 6-59

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timeshare project pursuant to a time-share interest and without paying rent including:
(A) a time-share owner; (B) a member of the family or guest of the time-share owner; (C) any person who is entitled to occupancy pursuant to any time-share exchange program, or any similar program; and (D) any person entitled to occupancy pursuant to any exchange or incentive program involving or sponsored by the operator of the time- share project.

Section 96: Subsection (E) of Section 3.16.050 (Operator's Collection Duties) of Chapter 3.16 (Uniform Transient Occupancy Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"E. If an operator fails to comply with subsection (A) of this section and also fails to obtain approval of a special package rate pursuant to subsection (C) of this section, the tax ("imputed rate") shall be the lesser of (1) the amount collected for the total special package or (2) an amount equal to the median average double occupancy room rate for the accommodations as posted in the room pursuant to the requirements of Cal. Civ.

Code Section 1863."
Section 97: Subsection (D) of Section 3.16.060 (Registration of Hotel) of Chapter 3.16 (Uniform Transient Occupancy Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"D. The following statement:

Transient occupancy registration certificate signifies that the person named on the certificate has fulfilled the requirements of the Uniform Transient Occupancy Tax Ordinance (Chapter 3.16 of this Code) by registering with the Finance Director for the purpose of collecting the tax from transients and remitting the tax to the Finance Director. This certificate does not authorize any person to conduct any unlawful business, to conduct any lawful business in an unlawful manner or to operate a hotel without strictly complying with all local laws, including those requiring a permit from any board, commission, department or office of the City.

This certificate does not constitute a permit.

The requirements of this section shall not apply to the operator of a hotel required to obtain a short term lodging permit pursuant to Section 5.95.020." Section 98: Section 3.16.080 (Penalties and Interest) of Chapter 3.16 (Uniform Transient Occupancy Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.16.080 Penalties and Interest.
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A. Initial Penalty. Any operator who fails to collect and remit any tax imposed by this chapter within the time required shall pay a penalty of ten (10) percent of the amount of the tax in addition to the amount of the tax (initial penalty). The initial penalty may not be waived.

B. Second Penalty. Any operator who fails to collect and remit the tax and initial penalty on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten (10) percent on both the amount of the tax and the initial penalty (second penalty). The second penalty may not be waived.

C. Interest. In addition to the penalties imposed, any operator who fails to collect and remit any tax imposed by this chapter shall pay interest on the amount of tax that is due and owing at the rate of one and one-half (1 112%) per month for each month or portion of a month that the tax remains unpaid exclusive of penalties.

D. Penalties Merged with Tax. For purposes of collection, every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax required to be paid, provided, however, that penalties and interest due from an operator under this section are not merged with tax due from a transient.

E. In addition to the penalties and interest provided in this section, the operator shall reimburse City for City's costs in performance of an audit if, as a result of the audit, it is determined there was any intentional misrepresentation by the operator with respect to the amount of transient occupancy tax due to the City or there is a five (5) percent or greater discrepancy between the amount of annual transient occupancy tax due to the City and the amount collected and remitted to the City by the operator. Such reimbursement shall be paid by operator within thirty (30) days of the date City notifies operator in writing of the amount of City's costs."
Section 99: Subsections (B) and (C) of Section 3.16.090 (Enforcement Proceedings —Appeal) of Chapter 3.16 (Uniform Transient Occupancy Tax) of Title 3 of the Code are hereby amended to read as set forth in the quotations below:
"B. If the operator fails to timely appeal a determination by the Finance Director the determination shall be final and conclusive and the tax, interest and penalties shall become immediately due and payable by the operator and/or the violation shall be deemed established.

C. If the operator files a timely appeal of the determination, the Finance Director shall appoint a hearing officer and give the operator not less than fifteen (15) days' written notice of the hearing on the appeal. The operator shall have the right to present evidence relevant to the determination and the hearing shall be conducted in 6-61

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accordance with the general rules applicable to any administrative hearing. The hearing officer shall submit to the City Manager a transcript of the hearing together with recommended findings of fact and conclusions of law. The City Manager shall consider the material submitted by the hearing officer and render a decision within fifteen (15) days after submission. The decision of the City Manager shall be final as to the City but subject to judicial review pursuant to Cal. Code Civ. Proc. Section 1094.5." Section 100: Section 3.16.110 (Records) of Chapter 3.16 (Uniform Transient Occupancy Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.16.110 Records.

It shall be the duty of every operator liable for the collection and remittance to the City of any tax imposed by this chapter to keep and preserve, for a period of not less than four (4) years, all records necessary to determine the amount of tax the operator was required to collect and remit to the City. All retained records shall be subject to audit as provided in Section 3.16.070. The Finance Director shall have the right to inspect and/or audit these records at any time during normal business hours on twenty-four (24) hours' written notice. The records shall be maintained at the operator's premises or at a location convenient to the Finance Director. The records shall include at least the following:

A. Daily summaries of room occupancies;
B. A record of each occupancy charge for which exemption is claimed, the City provided form of exemption, if applicable, including the name of the individual occupying the room, dates of occupancy and reasons for exemption, C. All qualifying rental agreements."
Section 101: Subsection (A) of Section 3.16.120 (Refunds) of Chapter 3.16 (Uniform Transient Occupancy Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"A. Claim Required. Whenever the amount of any tax, interest or penalty has been overpaid, paid more than once or has been erroneously or illegally collected or received by the City, the tax may be refunded as provided in subsections (B) and (C) of this section; provided, that a written claim for refund is filed with the Finance Director. The claim for refund must be filed within one (1) year of the date of payment, be made on forms furnished by the Finance Director and be signed by the operator under penalty of perjury."
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Section 102: Section 3.16.130 (Tax Declared a Debt —Action to Collect) of Chapter 3.16 (Uniform Transient Occupancy Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.16.130 Tax Declared a Debt —Action to Collect.

Any tax required to be paid by any transient pursuant to this chapter shall be deemed a debt owed by the transient to the City. Any such tax collected by an operator that has not been paid to the City, tax an operator has failed to collect, or penalty or interest due from an operator shall be deemed a debt owed by the operator to the City. Any person owing money to the City pursuant to this chapter shall be liable to an action brought in the name of the City for the recovery of such amount."
Section 103: Section 3.16.140 (Penalty for Violations) of Chapter 3.16 (Uniform Transient Occupancy Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.16.140 Penalty for Violations.

No operator or other person shall willfully: (A) fail or refuse to register as required by this chapter; (B) fail to make any return required by this chapter; (C) fail or refuses to furnish a supplemental return or other data required by the Finance Director; or (D) make a false or fraudulent return or claim."
Section 104: Section 3.20.010 (Fund Established) of Chapter 3.20 (Gasoline Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.20.010 Fund Established.

There is created in the City Treasury a special fund to be known as the "Special Gas Tax Street Improvement Fund," for the purposes specified in Cal. Sts. & Hy. Code Division 1, Chapter 1, Article 5, and all funds required by such law to be deposited in the special fund shall be deposited therein in compliance with the provisions of this Code, and the disbursements and withdrawals from the fund shall be made only for the purposes and in the manner prescribed in this Code."
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Section 105:The Table of Contents for Chapter 3.22 (Real Property Transfer Tax) of Title 3 of the Code is hereby amended to read as follows:

Chapter 3.22

REAL PROPERTY TRANSFER TAX
Sections:

3.22.010 Short Title —Adoption Authority.

3.22.020 Tax Imposed.

3.22.030 Persons Liable for Tax.

3.22.040 Exemption —Security Instruments.

3.22.050 Exemption —Governmental Agencies.

3.22.060 Exemption —Insolvency or Bankruptcy.

3.22.070 Exemption —Orders of Securities and Exchange Commission.

3.22.080 Exemption —Certain Partnership Transfers.

3.22.085 Exemptions.

3.22.090 Administration.

3.22.100 Refunds.

Section 106: Section 3.22.010 (Short Title —Adoption Authority) of Chapter 3.22 (Real Property Transfer Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.22.010 Short Title —Adoption Authority.

This chapter shall be known as the "real property transfer tax ordinance of the City of Newport Beach." It is adopted pursuant to the authority contained in Cal. Rev. & Tax.

Code Division 2, Part 6.7 (commencing with Section 11901)." Section 107: Section 3.22.060 (Exemption --Insolvency or Bankruptcy) of Chapter 3.22 (Real Property Transfer Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.22.060 Exemption —Insolvency or Bankruptcy.

The tax imposed by this chapter shall not apply to the making, delivering or filing of conveyances to make effective any plan of reorganization or adjustment:

A. Confirmed under the Federal Bankruptcy Act;
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B. Approved in an equity receivership proceeding in a court involving a railroad corporation, as defined in subdivision 11 U.S.C. Section 101; C. Approved in an equity receivership proceeding in a court involving a corporation, as defined in subdivision 11 U.S.C. Section 101; or
D. Whereby a mere change in identity, form or place of organization is affected.

Subsections (A) to (D), inclusive, of this section shall only apply if the making, delivery or filing of instruments of transfer or conveyances occurs within five (5) years from the date of such confirmation, approval, or change."
Section 108: Subsection (B) of Section 3.22.085 (Exemptions) of Chapter 3.22 (Real Property Transfer Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"B. The transfer, division or allocation of property assets between spouses under judgment or dissolution of marriage, separation or agreement in contemplation or judgment or order.
1, The tax imposed by this chapter shall not apply with respect to any deed, instrument, or other writing which purports to transfer, divide, or allocate community, quasi -community, or quasi -marital property assets between spouses for the purpose of effecting a division of community, quasi -community, or quasi -marital property which is required by a judgment decreeing a dissolution of the marriage or legal separation, by a judgment of nullity, or by any other judgment or order rendered pursuant to the Cal.

Fam. Code, or by a written agreement between the spouses, executed in contemplation of any such judgment or order whether or not the written agreement is incorporated as part of any of those judgments or orders.

2. in order to qualify for the exemption provided in subdivision (1), the deed, instrument, or other writing shall include a written recital, signed by either spouse, stating that the deed, instrument, or other writing is entitled to the exemption." Section 109: Section 3.22.090 (Administration) of Chapter 3.22 (Real Property Transfer Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.22.090 Administration.

The County Recorder shall administer this chapter in conformity with the provisions of Cal. Rev, Tax. Code Division 2, Part 6.7, being the Documentary Transfer Tax Act, and the provisions of any County ordinance adopted pursuant thereto." 6-65

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Section 110: Section 3.22.110 (Operative Date) of Chapter 3.22 (Real Property Transfer Tax) of Title 3 of the Code is hereby deleted in its entirety.

Section 111: Chapter 3.26 (Health Care and Recreation Facilities Revenue Bond Ordinance) of Title 3 of the Code is hereby deleted in its entirety.

Section 112: Section 3.27.030 (Definitions) of Chapter 3.27 (Municipal Facilities Revenue Bond Code) of Title 3 of the Code is hereby amended to delete the following definitions:
"City" means the City of Newport Beach, California, a chartered City in the State existing under and exercising powers pursuant to the Charter and the Constitution of the State. "City Council" means the City Council of the City.
"State" means the State of California.

Section 113: Section 3.27.110 (Repayment of Bonds) of Chapter 3.27 (Municipal Facilities Revenue Bond Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:

1.27.110 Repayment of Bonds.

Revenues, or any portion thereof, as designated in the resolution, trust agreement or indenture authorizing the issuance of the bonds, shall be the sole source of funds pledged by the City for repayment of bonds issued hereunder shall not be deemed to constitute a debt or liability of the City or a pledge of the faith and credit of the City but shall be payable solely from revenues.

All bonds shall contain on the face thereof a statement to the following effect:

Neither the faith and credit nor the taxing power of the City are pledged to the payment of the principal of or interest on this bond.

The issuance of bonds shall not directly, indirectly or contingently obligate the City Council to levy or pledge any form of taxation or to make any appropriation for their payment."
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Section 114: Section 3.27.170 (Provisions of this Chapter are Complete, Additional and Alternative) of Chapter 3.27 (Municipal Facilities Revenue Bond Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.27.170 Provisions of this Chapter are Complete, Additional and Alternative.

This chapter shall be deemed to provide a complete, additional and alternative method for doing the things authorized hereby and shall be regarded as supplemental and additional to the powers conferred by other laws. The issuance of bonds under the provisions of this chapter need not comply with the requirements of any other law applicable to the issuance of bonds for an enterprise. The purposes authorized hereby may be effectuated and bonds are authorized to be issued for any such purposes under this chapter notwithstanding that any other law may provide for such purposes or for the issuance of bonds for like purposes and without regard to the requirements, restrictions, limitations or other provisions contained in any other law." Section 115: Section 3.27.180 (Judicial Validation Proceedings) of Chapter 3.27 (Municipal Facilities Revenue Bond Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
°3.27.180 Judicial Validation Proceedings.

An action may be brought pursuant to Chapter 9 (commencing with Cal. Civ. Proc, Section 860) to determine the validity of bonds and the legality and validity of all proceedings previously taken and proposed to be taken for the authorization, issuance, sale, and delivery of the bonds and for the payment of the principal thereof and interest thereon."
Section 116: Section 3.27.190 (Amendment of Chapter) of Chapter 3.27 (Municipal Facilities Revenue Bond Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.27.190 Amendment of Chapter.

This chapter shall not be amended so as to have a material, adverse effect upon the rights of the owners of any outstanding bonds theretofore issued hereunder, without the written consent of such bond owners; provided, however, that this chapter may be amended at any time (a) To make such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provisions herein contained, as the City may deem necessary or desirable; or (b) If such amendment does not materially impair or adversely affect the interests of any such bond owner in the opinion of the City Council; or (c) If such amendments apply solely to bonds not theretofore issued."
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Section 117: Subsection (E) of Section 3.28.005 (Findings and Purpose) of Chapter 3.28 (Visitor's Service Fee) of Title 3 of the Code is hereby amended to read as set forth in the quotations below-
"E. Businesses that provide lodging for visitors will play a key role in dispensing information to visitors, and the guests of hotels, motels and inns will be the principal beneficiaries of the program;"
Section 118: Section 3.28.010 (Definitions) of Chapter 3.28 (Visitor's Service Fee) of Title 3 of the Code is hereby amended to read as follows:

3.28.010 Definitions.

Except where the context otherwise requires, the definitions given in this section shall govern the construction of this chapter:

City collector. The term "City collector" shall mean the Finance Director.

Guest. The term "guest" shall mean 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 days or less, counting portions of days as full days. Any individual occupying space in a hotel shall be deemed to be a guest until the period of thirty (30) days has expired, unless there is a qualifying rental agreement between the operator and the guest providing for a longer period of occupancy.

Hotel. The term "hotel" shall mean any structure or any portion of any structure or the air space within any structure which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes for periods of thirty (30) days or less. The term "hotel" includes any inn, residential dwelling unit, motel, group residential or lodging house, bed and breakfast inn, single room occupancy hotel, hostel, rental unit, public or private residential club, mobile home, time-share project, house trailer at a fixed location, or other structure or portion of a structure.

Individual. The term "individual" shall mean any natural person.

Occupancy. The term "occupancy" shall mean the use or possession, or the right to use or possession, of a specific room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes.

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Operator. The term "operator" shall mean the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, time-share project owner's association or any other capacity. Where the operator performs his functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his principal.

Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both.

Person. Except as used in the term "guest," the term "person" shall have the same meaning as set forth in Section 1.08.120.

Qualifying Rental Agreement. The term "qualifying rental agreement" shall mean a written leasehold agreement signed by both the operator and guest obligating the guest to pay rent for use and possession of a room or space in a hotel for a period of not less than thirty-one (31) consecutive days. The "qualifying rental agreement" shall be legally enforceable by both the operator and guest and shall include in its terms both the right to occupy and the obligation to pay for a room and/or rooms for thirty-one (31) days or more. "Qualifying rental agreement" expressly excludes:

A. Any agreement, regardless of the rental term, which is terminated for any reason, by either party, or by mutual consent, prior to the thirty-first consecutive day of occupancy; or
B. Any agreement that would be unlawful or constitute a violation of law.

Rent. The term "rent" shall mean the consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction.

Time -Share Interest. The term "time-share interest" shall mean either a time-share estate or a time-share use (as those terms are defined in Cal. Bus. & Prof. Code Section 11212) and any similar form of ownership involving a right in perpetuity, for life, or for a term of years, to occupy any room, space or area in a time-share project.

Time -Share Project. The term "time-share project" shall mean a structure or real property (including air space) in which a time-share interest has been sold. ..•

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Section 119: Section 3.28.040 (Reporting and Remitting, Collection) of Chapter

3.28 (Visitor's Service Fee) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.28.040 Reporting and Remitting, Collection.

The operator shall be required to collect, report and remit all fees paid pursuant to this chapter in the same manner as required by Section 3.16.070." Section 120: Section 3,28.045 (Penalties and Interest) of Chapter 3.28 (Visitor's Service Fee) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.28.045 Penalties and Interest.

Any operator who fails to collect and remit any fee imposed by this chapter within the time required shall be required to pay penalties and interest in the same manner and amounts as provided in Section 3.16.080."
Section 121: Section 3.28.057 (Payment Required) of Chapter 3.28 (Visitor's Service Fee) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.28.057 Payment Required.

No injunction, writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the City or an officer thereof, to prevent or enjoin the collection of fees sought to be collected pursuant to this chapter. Payment of all fees, interest and penalties is a required condition precedent to seeking judicial review of any liability under this chapter."
Section 122:Subsection (A) of Section 3.28.060 (Duty of Successor of Operator) of Chapter 3.28 (Visitor's Service Fee) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"A. If an operator who is liable for any fee or penalties under this chapter sells or otherwise disposes of the hotel operation, his/her successor shall notify the Finance Director of the date of sale at least thirty (30) days before the date of sale, or if the decision to sell was made less than thirty (30) days prior to the actual sale, then immediately and shall upon withhold a sufficient portion of the purchase price to equal the amount of any unpaid fees or penalty until the selling operator produces a receipt from the Finance Director showing that the fees or penalties have been paid or a 6-70

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clearance certificate from the Finance Director stating that no fee or penalty is due. If the seller does not present a receipt or clearance certificate within thirty (30) days after such successor commences to conduct business, the successor shall deposit the withheld amount with the Finance Director pending settlement of the account of the seller."
Section 123: Subsection (A) of Section 3.28.070 (Refunds) of Chapter 3.28 (Visitor's Service Fee) of Title 3 of the Code is hereby amended to read as follows:
"A. Claim Required. Whenever the amount of any fee, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the City under this chapter, it may be refunded as provided in subsections (B) and (C) of this section; provided, that a claim in writing therefor, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Finance Director within one (1) year of the date of payment. The claim shall be on forms furnished by the Finance Director."
Section 124: Section 3.28.075 (Notice) of Chapter 3.28 (Visitor's Service Fee) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
`°3.28.075 Notice.

Any notice required to be given pursuant to this chapter, shalt be deemed given if served on the operator or the operator's representative in the manner provided in Section 1.08.080 and addressed to the operator at the address shown on the transient occupancy registration certificate."
Section 125: Section 3.28.080 (Fee Declared a Debt ---Action to Collect) of Chapter 3.28 (Visitor's Service Fee) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.28.080 Fee Declared a Debt —Action to Collect.

Any fee collected by an operator pursuant to this chapter that has not been paid to the City, fee an operator has failed to collect, or penalty or interest due from an operator shall be deemed a debt owed by the operator to the City and the operator shall be liable in an action brought in the name of the City of Newport Beach for the recovery such amount."
Section 126: Section 3.28.085 (Penalty for Violations) of Chapter 3.28 (Visitor's Service Fee) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
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"3.28.085 Penalty for Violations.

No operator or other person shall willfully: (A) fail or refuses to register as required by this chapter; (B) fail to make any return required by this chapter; (C) fail or refuses to furnish a supplemental return or other data required by the Finance Director; or (D) make a false or fraudulent return or claim."
Section 127: Subsections (D), (G) and (H) of Section 3.30.010 (Findings) of Chapter 3.30 (Air Quality Improvement Trust Fund) of Title 3 of the Code are hereby amended to read as set forth below:

Subsection (D) of Section 3.30.010 shall read as set forth in the quotations below:
"D. Cities and counties have the opportunity to implement programs and projects that reduce air polluting emissions from mobile sources in order that the SCAB attain State and federal ambient air quality standards as required by the California Clean Air Act of 1988, Cal. Health & Saf. Code section 39000 et seq."
Subsection (G) and (H) of Section 3.30.010 shall read as set forth in the quotations below:
"G. For cities and counties located within the jurisdiction of the SCAQMD that comply with Section 44243 of the Cal. Health & Saf. Code, forty cents ($.40) of every dollar collected under Cal. Health & Saf. Code Section 44223 shall be distributed to the cities and counties on the basis of the jurisdiction's prorated share of population as defined by the State Department of Finance.

H. Cities and counties that fail to adopt an ordinance pursuant to Cal. Health & Saf.

Code Section 44243(b) shall have the fee revenues which would be distributed to that City or County distributed to the other cities and counties within the jurisdiction of the SCAQMD which have adopted an ordinance pursuant to Section 44243(b) based on their prorated share of registered motor vehicles."
Section 128: Section 3.30.020 (Intent) of Chapter 3.30 (Air Quality Improvement Trust Fund) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.30.020 Intent.

The intent of this chapter is to establish a special fund to receive revenue distributed by the SCAQMD, to support the SCAQMD's imposition of the additional vehicle registration fee and to bring the City into compliance with the requirements set forth in Cal. Health & 6-72

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Saf. Code Section 44243 to receive fee revenues for the purpose of implementing mobile source air pollution reduction programs."
Section 129: Section 3.30.030 (Definitions) of Chapter 3.30 (Air Quality Improvement Trust Fund) of Title 3 of the Code is hereby amended to read as follows:

3.30.030 Definitions.

A. "Mobile source air pollution reduction programs" shall mean any program or project implemented by the City to reduce air pollution from motor vehicles pursuant to the California Clean Air Act of 1988 or the plan proposed pursuant to Cal. Health & Saf.

Code Section 40460 et seq.

B. "Fee Administrator" shall mean the Finance Director of the City.

Section 130: Subsections (E) and (F) of Section 3.30.040 (Administration) of Chapter 3.30 (Air Quality Improvement Trust Fund) of Title 3 of the Code are hereby amended to read as set forth in the quotations below:
"E. Audits. The City consents to providing the findings of its annual independent audit for mobile source air pollution reduction programs and projects financed by the additional motor vehicle registration fee. The audit of those programs and projects shall be conducted in accordance with the procedure established to fulfill the audit requirement under Cal. Health & Saf. Code Section 44244.1.

F. Appeals. The City shall have the right to appeal the findings and determinations made as a result of the SCAQMD audit procedure through the public hearing process described in Cal. Health & Saf. Code Section 44244.1)." Section 131: The Table of Contents for Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as follows:

Chapter 3.32

SPECIAL IMPROVEMENT DISTRICT FINANCING CODE
Sections:

Article I. Definitions

3.32.010 Definitions.

Article II. General Provisions
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3.32.020 Short Title.

3.32.030 Municipal and State Affairs —Authority Conferred by Code — Applicability of Laws.

3.32.050 Actions or Determinations by Local Agency.

3.32.060 Establishment of Special Improvement District to Finance Certain Additional Services.

3.32.070 Additional Financing Powers of District —Purchase, Construction, Expansion, Improvement, Rehabilitation, or Planning and Design Work of Real or Tangible Property.

3.32.100 Additional District Financing Powers.

3.32.110 Transfer of Funds —Use of Money —Interest.

3.32.120 Advances of Funds or Work In -kind —Acceptance by City Council— Use —Repayment —Agreement --Conditions.

3.32.130 Liberal Construction of Code —Error, irregularity, Neglect or Omission.

3.32.140 Failure to Receive Notice, Resolution, Order, or Other Matter Not Affecting Proceedings.

3.32.150 Application of Code —Authority to Create Special Improvement Districts.

3.32.160 Special Tax —Property Acquired by Public Entity Through Negotiated Transaction or by Gift or Device.

3.32.170 Special Tax ----Special Assessment on Property Acquired by Public Entity Through Eminent Domain.

Article III. Proceedings to Create a Special Improvement District

3.32.180 Institution of Proceeding —Request —Petition —Fee.

3.32.190 Prohibition of LAFCO From Review, Approval or Disapproval of Creation of or Annexation or Detachment of Territory from a District.

3.32.200 Petition —Contents —Findings as to Requisite Number of Signers.

3.32.210 Resolution of Intention to Establish District —Time for Adoption.

3.32.220 Resolution of intention to Establish Special Improvement District —Contents.

3.32.230 Reports and Estimate of Costs by Responsible Officers — Remedial Action Plan for Cleanup of Hazardous Substance — Inclusion in Record of Hearing.

3.32.240 Notice of Hearing.
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3.32.250 Notice of Hearing by Mail to Registered Voters and Landowners Within Proposed District.

3.32.260 Protests —Interested Persons or Taxpayer.

3.32.270 Written Protest —Further Proceedings to Create District — Elimination of Special Tax or Types of Facilities or Services from Resolution of Formation.

3.32.280 Hearing —Continuances —Time Limitation —Exception — Modification of Resolution of Intention —Determination to Abandon or Proceed With Establishment of District.

3.32.290 Adoption of Resolution of Formation Establishing District— Contents— Finding Concerning Validity and Conformity of Prior Proceedings.

3.32.300 Special Tax —Basis for Apportionment.

3.32.310 Noncontiguous Areas --Alteration of Boundaries.

3.32.320 Establishment or Changing Appropriations Limit —Election on Proposition —Adjustment.

3.32.330 Special Tax Levy —Election —Voter Qualifications —Ballots.

3.32.340 Election Laws Governing —Ballot Materials.

3.32.350 Election by Mail Ballot.

3.32.360 Special Tax Levy.

3.32.370 Recordation and Notice of Special Tax Lien —Site of Record.

3.32.380 Application of California Streets and Highway Code With Respect to Special Taxes —Filings.

3.32.390 Special Tax Levy —Effect of Failure to Receive Approval by Two- thirds of Voters.

3.32.400 Owners Not Required to Present Sealed Proposals or Bids — Election Not to Perform Work —Contract With Original Bidder.

Article IV. Extension of Authorized Facilities and
Services and Changes in Special Taxes

3.32.410 Types of Facilities and Services Financed.

3.32.420 Buyers of Certain Residential Property —induced Waiver of Right to Petition or Take Other Action Prohibited.

3.32.430 Special Tax —Levy and Apportionment —Cessation of Tax and Lien.

3.32.440 Types of Facilities and Services Provided.

3.32.450 Resolution of Consideration —Change in Types of Facilities and Services Financed.
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3.32.460 Resolution of Consideration to Make Changes in Facilities, Services or Special Taxes —Petition —Fee.

3.32.470 Petition to Make Specified Changes to Types of Public Facilities --Separate Instruments —Signatures.

3.32.480 Resolution of Consideration —Form.

3.32.490 Resolution of Intention to Make Changes in Facilities, Services or Special Taxes —Notice of Hearing.

3.32.500 Resolution of Intention to Make Changes in Facilities, Services or Special Taxes —Protests.

3.32.510 Written Protests Against Changes —Elimination From Resolution.

3.32.520 Hearing —Time —Abandonment of Proceeding or Submission of Question to Qualified Electors --Determination of Legal Effect of Proposed Levy or of Changes in Facilities and Services —Notice of Changes.

3.32.530 Dissolution of Special Improvement District —Findings — Dissolution of Liens.

Article V. Annexation of Territory

3.32.540 Authorization.

3.32.550 Adoption of Resolution of Intention.

3.32.560 Resolution of Intention —Contents.

3.32.570 Notice of Hearing.

3.32.580 Protests.

3.32.590 Abandonment of Proposal —Required Number of Written Protests.

3.32.600 Continuance and Duration of Hearing —Abandonment of Proceedings —Submission of Special Tax Question to Electors — Annexation of Territory —Effectiveness of Ballots Contingent on Passage of Other Ballot Measures.

3.32.610 Addition of Territory With Full Legal Effect —Special Tax Levy.

3.32.620 Failure to Receive Approval of Two-thirds of Voters —Prohibition of Further Action.

Article VI. Procedures for Levying

3.32.630 Ordinance —Tax Rate and Apportionment —Exemption of Governmental Properties and Entities From Special Tax —Use of 6-76

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Tax Proceeds —Tax Collection, Penalties, etc. —Lien to Secure Levy of Special Taxes.

3.32.640 Preparation of Current Roll of Special Tax Levy Obligations — Designation of Responsible Office —Estimation of Future Special Tax Levies —Liability for Inaccurate Estimates —Notice of Special Tax— Form.

3.32.650 Actions or Proceedings to Attack, Review, Set Aside, Void, or Annul Levy of Special Tax or Increase in Special Tax —Time for Commencement —Time for Perfection of Appeal From Final
Judgment.

3.32.660 Sale or Lease of Lot, Parcel or Unit of Subdivision —Notice of Special Tax —Form —Termination of Agreement —Violations and Penalties.

3.32.670 Manner of Fixing and Collecting Charges.

3.32.680 Use of Charges for Authorized Facilities and Services.

3.32.690 Prepayment and Satisfaction of Special Tax Lien —Notice of Cancellation of Lien.

Article VII. Bonds

3.32.700 Resolution to Incur Bonded Indebtedness.

3.32.710 Inclusion of Certain Costs and Estimated Costs in Proposed Bonded Indebtedness.

3.32.720 Notice of Hearing on Resolution.

3.32.730 Hearing —Proceeding With.

3.32.740 Hearing —Interested Persons.

3.32.750 Improvement Area —Resolution Designating —Application of Proceedings.

3.32.760 Resolution —Bonded Indebtedness.

3.32.770 Resolution to Incur Bonded Indebtedness —Notice of Election — Publication.

3.32.780 Ballot Propositions.

3.32.790 Separate Ballots.

3.32.800 Revenue Anticipation Bonds —Votes Required for Issuance.

3.32.810 Resolution Relating to Form, Execution and Issuance of Bonds.

3.32.820 Action to Foreclose Liens —Cumulative Remedy —Resolution to Diligently Pursue Foreclosure Action —Collection of Delinquent Charges.
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3.32.830 Credit to Tax Collector on Current Tax Roll of Amount Foreclosed— Responsibility for Amounts Not Foreclosed — Costs of Removing Sums From Tax Roll.

3.32.840 Dismissal of Action Before Judgment in Foreclosure Action — Payment of Specified Amounts.

3.32.850 Complainant and Time for Bringing Foreclosure Action — Contents of Complaint.

3.32.860 Judgment Decree—Contents—Amount—Attorney's Fees — Application of General Foreclosure Provisions.

3.32.870 Price of Property Sold.

3.32.880 Computation Errors —Validity of Special Tax Installment, Interest or Penalty.

3.32.890 Signatures on Bonds or Coupons —Place Bonds Are Payable.

3.32.900 Special Tax or Charge for Outstanding Bonded Debt.

3.32.910 Action to Determine Validity of Bonds or Special Tax Levy.

3.32.920 Sale of Bonds —Bids and Bidding.

3.32.930 Variable Interest Rate.

3.32.940 Force, Value and Use of Bonds —Exemption From State Taxation.

3.32.950 Refunding Bonds —Resolution.

3.32.960 Limitation on Issuance of Refunding Bonds —Principal Amount of Refunding Bonds.

3.32.970 Reduction of Bonded Indebtedness by Amount of Issued Refunding Bonds.

3.32.980 Refunding Bonds —Issuance Without Repetition of Procedures Required for Approval of Original Bond Issue.

3.32.990 Refunding Bonds —Resolution for Issuance.

3.32.1000 Refunding Bonds —Exchange or Sale.

3.32.1010 Amount of Proceeds and investments in Funding Fund.

3.32.1020 Refunding Bonds —Use of Savings —Reduction of Tax Levy.

3.32.1030 Callable Bonds.

3.32.1040 Borrowing Money in Anticipation of Sale of Bonds —Issuance of Negotiable Bond Anticipation Notes —Renewal of Notes.

Section 132: Section 3.32.010 (Definitions) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as follows:

3.32.010 Definitions.
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Unless the context otherwise requires, the definitions contained in this section shall govern the construction of this chapter.

A. "Cost" means the expense of constructing or purchasing the public facility and of related land, right-of-way, easements, including incidental expenses, and the cost of providing authorized services, including incidental expenses.

B. "Debt" means any binding obligation to pay or repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts.

C. "Incidental expense" includes all of the following:

1. The cost of planning and designing public facilities to be financed pursuant to this Code, including the cost of environmental evaluations of those facilities.

2. The costs associated with the creation of the special improvement district, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred to carry out the authorized purposes of the special improvement district.

3. Any other expenses incidental to the construction, completion, and inspection of the authorized work.

D. "Landowner" or "owner of land" means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of the land by the City. The City Council has no obligation to obtain other information as to the ownership of the land, and its determination of ownership shall be final and conclusive for the purposes of this Code. A public agency is not a landowner or owner of land for purposes of this Code.

E. "Legislative body" means the legislative body or governing board of any local agency.

F. "Local agency" means any city or county, whether general law or chartered, special district, school district, joint powers entity created pursuant to Cal. Gov, Code, Title 1, Division 7, Chapter 5, Section 6500 et seq., or any other municipal corporation, district, or political subdivision of the State.
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G. "Rate" means a single rate of tax or a schedule of rates.

H. "Services" means the provision of police and fire protection services, recreation programs, library services, operation and maintenance of museums and cultural facilities, the operation and maintenance of parks and parkways, and the provision of flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems. "Services" includes the performance by employees of functions, operations, maintenance, and repair activities.

I. "Special improvement district" means a legally constituted governmental entity established pursuant to this Code for the sole purpose of financing facilities and services,
Section 133: Section 3.32.030 (Municipal and State Affairs —Authority Conferred by Code —Applicability of Laws) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.030 Municipal and State Affairs —Authority Conferred by Code — Applicability of Laws.

This Code is adopted pursuant to City Charter Section 200_ in proceedings had pursuant to this Code which are a municipal affair, any general laws referred to in this Code are deemed a part of this Code.

In the event that any proceeding had pursuant to this Code shall be adjudged a matter of statewide concern, it is declared to be the intention that the proceedings were had pursuant to any applicable general law or laws.

This Code provides an alternative method of financing certain public capital facilities and services. The provisions of this Code shall not affect or limit any other provisions of law authorizing or providing for the furnishing of governmental facilities or services or the raising of revenue for these purposes. The City may use the provisions of this Code instead of any other method of financing part or all of the cost of providing the authorized kinds of capital facilities and services."
Section 134: Section 3.32.040 (Conflicting Provisions—Severability) of Chapter

3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby deleted in its entirety.
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Section 135: Subsection (F) of Section 3.32.060 (Establishment of Special Improvement District to Finance Certain additional Services) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"F. Services with respect to removal or remedial action for the cleanup of any hazardous substance released or threatened to be released into the environment. As used in this subdivision, the terms "remedial action" and "removal" shall have the meanings set forth in Cal. Health & Saf. Code Sections 25322 and 25323, respectively, and the term "hazardous substance" shall have the meaning set forth in Cal. Health & Saf. Code Section 25281. Special improvement districts shall provide the State Department of Health Services and local health and building departments with notification of any cleanup activity pursuant to this subdivision at least thirty (30) days prior to commencement of the activity."
Section 136: Subsections (D) and (H) of Section 3.32.070 (Additional Financing Powers of District —Purchase, Construction, Expansion, Improvement, Rehabilitation, or Planning and Design Work of Real or Tangible Property) of Chapter 3.32 (Special improvement District Financing Code) of Title 3 of the Code are hereby amended to read set forth below:

Subsection (D) of Section 3.32.070 shall read as set forth in the quotations below:
"D. The district may also finance the construction or undergrounding of water transmission and distribution facilities, natural gas pipeline facilities, telephone lines, facilities for the transmission or distribution of electrical energy, and cable television lines. The district may enter into an agreement with a public utility to utilize those facilities to provide a particular service and for the conveyance of those facilities to the public utility. "Public utility" shall include all utilities, whether public and regulated by the Public Utilities Commission, or municipal. If the facilities are conveyed to the public utility, the agreement shall provide that the cost or a portion of the cost of the facilities that are the responsibility of the utility shall be refunded by the public utility to the district or improvement area thereof, to the extent that refunds are applicable pursuant to: (1) the Cal. Pub. Util. Code or rules of the Public Utilities Commission, as to utilities regulated by the commission; or (2) other laws regulating public utilities. Any reimbursement made to the district shall be utilized to reduce or minimize the special tax levied within the district or improvement area, or to construct or acquire additional facilities within the district or improvement area, as specified in the resolution of formation."
Subsection (H) of Section 3.32.070 shall read as set forth in the quotations below:
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"H. 1. A district may also pay for the following:
a. Work deemed necessary to bring buildings or real property, including privately owned buildings or real property, into compliance with seismic safety standards or regulations. No project involving the dismantling of an existing building and its replacement by a new building, nor the construction of a new or substantially new building may be financed pursuant to subsection (H)(1)(a) of this section. Work on qualified historical buildings or structures shall be done in accordance with the State Historical Building Code (Cal. Health & Saf. Code Division 13, Part 2.7, Section 18950 et seq.
b. in addition, within any County or area designated by the President of the United States or by the Governor as a disaster area or for which the Governor has proclaimed the existence of a state of emergency because of earthquake damage, a district may also pay for any work deemed necessary to repair any damage to real property directly or indirectly caused by the occurrence of an earthquake cited in the President's or the Governor's designation or proclamation, or by aftershocks associated with that earthquake, including work to reconstruct, repair, shore up, or replace any building damaged or destroyed by the earthquake. Work may be financed pursuant to this subsection (H)(1)(b) only on property or buildings identified in a resolution of intention to establish a special improvement district adopted within seven (7) years of the date on which the County or area is designated as a disaster area by the President or by the Governor or on which the Governor proclaims for the area the existence of a state of emergency.

2. Work on privately owned property, including reconstruction or replacement of privately owned buildings pursuant to subsection (H)(1)(b) of this section, may be financed by a tax levy only if all of the votes cast on the question of levying the tax, favor levying the tax, or with the prior written consent to the tax of the owners of all property which may be subject to the tax, in which case the prior written consent shall be deemed to constitute a vote in favor of the tax and any associated bond issue. Any district created to finance seismic safety work on privately owned buildings, including repair, reconstruction or replacement of privately owned buildings pursuant to this subsection (H), shall consist only of lots or parcels that the City Council finds were the sites of buildings damaged or destroyed by an earthquake cited in the President's or the Governor's designation or proclamation.
a. A district may also pay for the following:
i. Work deemed necessary to repair and abate damage caused to privately owned buildings and structures by soil deterioration. "Soil deterioration" means a chemical reaction by soils that causes structural damage or defects in construction materials including concrete, steel, and ductile or cast iron. No project involving the dismantling of an existing building or structure and its replacement by a new building or 6-82

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structure, nor the construction of a new or substantially new building or structure may be financed pursuant to this subsection (a)(i).
ii. Work on privately owned buildings and structures pursuant to this subsection (a), including reconstruction, repair, and abatement of damage caused by soil deterioration, may only be financed by a tax levy if all of the votes cast on the question of levying the tax favor levying the tax. Any district created to finance the work on privately owned buildings or structures, including reconstruction, repair, and abatement of damage caused by soil deterioration, shall consist only of lots or parcels that the City Council finds suffer from soil deterioration." Section 137: Section 3.32.080 (Adjustments in Ad Valorem Property Taxes — Findings) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby deleted in its entirety.

Section 138: Section 3.32.090 (increase in Total Annual Amount of Ad Valorem Property Tax Revenue Due From Parcels Within Proposed District) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby deleted in its entirety.

Section 139: Section 3.32.100 (Additional District Financing Powers) of Chapter

3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.100 Additional District Financing Powers.

Pursuant to Section 3.32.070, a special improvement district may also finance the acquisition, improvement, rehabilitation, or maintenance of any real or other tangible property, whether privately or publicly owned, for the purposes described in Section

3.32.060 (F)."
Section 140: Subsection (A) of Section 3.32.120 (Advances of Funds or Work In - kind —Acceptance by City Council —Use —Repayment —Agreement --Conditions) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"A. At any time either before or after the formation of the district, the City Council may accept advances of funds or work in -kind from any source, including, but not limited to, private persons or private entities and may provide by resolution for the use of those funds or that work in -kind for any authorized purpose, including, but not limited to, paying any cost incurred by the City in creating the special improvement district. The City Council may enter into an agreement, by resolution, with the person or entity 6-83

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advancing the funds or work in -kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work in - kind, as determined by the City Council, with or without interest, under all of the following conditions:

1. The proposal to repay the funds or the value or cost of the work in -kind, whichever is less, is included in the resolution of intention to establish the district or in the resolution of formation to establish the district, or in the resolution of consideration to alter the types of public facilities and services provided within an established district.

2. Any proposed special tax or change in a special tax is approved by the qualified electors of the district. Any agreement shall specify that if the qualified electors of the district do not approve the proposed special tax or change in a special tax, the local agency shall return any funds which have not been committed for any authorized purpose by the time of the election to the person or entity advancing the funds.

3. Any work in -kind accepted pursuant to this section shall have been performed or constructed as if the work had been performed or constructed under the direction and supervision, or under the authority of, the local agency." Section 141:Section 3.32.170 (Special Tax —Special Assessment on Property Acquired by Public Entity Through Eminent Domain) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.170 Special Tax —Special Assessment on Property Acquired by Public Entity Through Eminent Domain.

If property subject to a special tax levied pursuant to this Code is acquired by a public entity through eminent domain proceedings, the obligation to pay the special tax shall be treated, pursuant to Cal. Civ. Proc. Code Section 1265.250, as if it were a special annual assessment. For this purpose, the present value of the obligation to pay a special tax to pay the principal and interest on any indebtedness incurred by the district prior to the date of apportionment determined pursuant to Cal. Civ. Proc. Code Section 5082 shall be treated the same as a fixed lien special assessment." Section 142: Section 3.32.190 (Prohibition of LAFCO From Review, Approval or Disapproval of Creation of or Annexation or Detachment of Territory From a District) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.190 Prohibition of LAFCO From Review, Approval or Disapproval of Creation of or Annexation or Detachment of Territory From a District.

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Notwithstanding any provision of Cal. Gov. Code, Title 5, Division 3, Part 1, Section 56000 et seq., a local agency formation commission shall have no power or duty to review and approve or disapprove a proposal to create a special improvement district or a proposal to annex territory to, or detach territory from, such district, pursuant to this Code."
Section 143: Section 3.32.220 (Resolution of Intention to Establish Special Improvement District —Contents) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.220 Resolution of Intention to Establish Special Improvement District — Contents.

Proceedings for the establishment of a special improvement district shall be instituted by the adoption of a resolution of intention to establish the district, which shall do all of the following:

A. State that a special improvement district is proposed to be established under the terms of this Code and describe the boundaries of the territory proposed for inclusion in the district, which may be accomplished by reference to a map on file in the office of the Clerk, showing the proposed special improvement district. The boundaries of the territory proposed for inclusion in the district shall include the entirety of any parcel subject to taxation by the proposed district.

B. State the name proposed for the district in substantially the following form: "City of Newport Beach Special improvement District No. "
C. Describe the public facilities and services proposed to be financed by the district pursuant to this Code. The description may be general and may include alternatives and options, but it shall be sufficiently informative to allow a taxpayer within the district to understand what the funds of the district may be used to finance. If the purchase of completed public facilities or the incurring of incidental expenses is proposed, the resolution shall identify those facilities or expenses. If facilities are proposed to be financed through any financing plan, including, but not limited to, any lease, lease - purchase, or installment -purchase arrangement, the resolution shall briefly describe the proposed arrangement.

D. State that, except where funds are otherwise available, a special tax sufficient to pay for all facilities and services, secured by recordation of a continuing lien against all nonexempt real property in the district, will be annually levied within the district. The resolution shall specify the rate, method of apportionment, and manner of collection of the special tax in sufficient detail to allow each landowner or resident within the 6-85

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proposed district to estimate the maximum amount that he or she will have to pay. The City Council may specify conditions under which the obligation to pay the specified special tax may be prepaid and permanently satisfied.
in the case of any special tax to pay for public facilities and to be levied against any parcel used for private residential purposes, (1) the maximum special tax shall be specified as a dollar amount which shall be calculated and thereby established not later than the date on which the parcel is first subject to the tax because of its use for private residential purposes, which amount shall not be increased by more than two (2) percent per year, (2) the resolution shall specify a tax year after which no further special tax subject to this sentence shall be levied or collected, and the resolution shall specify that under no circumstances will the special tax levied against any parcel subject to this sentence be increased by more than ten (10) percent as a consequence of delinquency or default by the owner of any other parcel or parcels within the district. For purposes of this subsection (D), a parcel shall be considered "used for private residential purposes" not later than the date on which an occupancy permit for private residential use is issued. Nothing in this subsection is intended to prohibit the City Council from establishing different tax rates for different categories of residential property, or from changing the dollar amount of the special tax for a parcel if the size of the residence is increased or if the size or use of the parcel is changed.

E. Fix a time and place for a public hearing on the establishment of the district which shall not be less than thirty (30) or more than sixty (60) days after the adoption of the resolution.

F. Describe the proposed voting procedure."
Section 144: Section 3.32.230 (Reports and Estimate of Costs by Responsible Officers --Remedial Action Plan for Cleanup of Hazardous Substance —inclusion in Record of Hearing) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.230 Reports and Estimate of Costs by Responsible Officers —Remedial Action Plan for Cleanup of Hazardous Substance —inclusion in Record of Hearing.

At the time of the adoption of the resolution of intention to establish a special improvement district, the City Council shall direct each of its officers who is or will be responsible for providing one or more of the proposed types of public facilities or services to be financed by the district, if it is established, to study the proposed district and, at or before the time of the hearing, file a report with the City Council containing a brief description of the public facilities and services by type which will in his or her opinion be required to adequately meet the needs of the district and his or her estimate of the cost of providing those public facilities and services. If the purchase of completed • i •

Ordinance No. 2023-

public facilities or the payment of incidental expenses is proposed, the City Council shall direct its appropriate officer to estimate the fair and reasonable cost of those facilities or incidental expenses. If removal or remedial action for the cleanup of any hazardous substance is proposed, the City Council shall (1) direct its responsible officer to prepare or cause to be prepared, a remedial action plan based upon factors comparable to those described in Cal. Health & Saf. Code Section 25356.1 subdivision (d) or (2) determine, on the basis of the particular facts and circumstances, which shall be comparable to those described in Cal. Health & Saf. Code Section 25356.1 subdivision (h) (3), that the remedial action is not required. All of those reports shall be made a part of the record of the hearing on the resolution of intention to establish the district." Section 145: Subsection (A) of Section 3.32.240 (Notice of Hearing) of Chapter

3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"A. The Clerk shall publish a notice of the hearing pursuant to Cal. Gov. Code Sections 6060 and 6061 in a newspaper of general circulation published in the area of the proposed district. Publication shall be complete at least seven (7) days prior to the date of the hearing."
Section 146: Section 3.32.270 (Written Protest —Further Proceedings to Create District —Elimination of Special Tax or Types of Facilities or Services From Resolution of Formation) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.270 Written Protest —Further Proceedings to Create District —Elimination of Speciall Tax or Types of Facilities or Services From Resolution of Formation.

If fifty (50) percent or more of the registered voters, or six (6) registered voters, whichever is more, residing within the territory proposed to be included in the district, or the owners of one-half or more of the area of the land in the territory proposed to be included in the district and not exempt from the special tax, file written protests against the establishment of the district, and protests are not withdrawn so as to reduce the value of the protests to less than a majority, no further proceedings to create the specified special improvement district or to levy the specified special tax shall be taken for a period of one year from the date of the decision of the City Council.

If the majority protests of the registered voters or of the landowners are only against the furnishing of a specified type or types of facilities or services within the district, or against levying a specified special tax, those types of facilities or services or the specified special tax shall be eliminated from the resolution of formation, but the formation may otherwise proceed."
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Section 147: Subsection (A) of Section 3.32.290 (Adoption of Resolution of Formation Establishing District —Contents —Finding Concerning Validity and Conformity of Prior Proceedings) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"A. If the City Council determines to establish the district, it shall adopt a resolution of formation establishing the district.

The resolution of formation shall contain all of the information required to be included in the resolution of intention to establish the district specified in Section 3.32.220. If a special tax is proposed to be levied in the district to pay for any facilities or services and the special tax has not been eliminated by majority protest pursuant to Section

3.32.270, the resolution shall:

1. State that the proposed special tax to be levied within the district has not been precluded by majority protest pursuant to Section 3.32.270.

2. Identify any facilities or services proposed to be funded with the special tax.

3. Set forth the name, address, and telephone number of the office, department, or bureau which will be responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel number and which will be responsible for estimating future special tax levies pursuant to Section 3.32.640.

4. State that upon recordation of a notice of special tax lien pursuant to Cal. Sts. & Hy. Code Section 3114.5, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the district and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the City ceases.

5. Set forth the County of Recordation and the book and page in the Book of Maps of Assessments and Community Facilities Districts in the County Recorder's office where the boundary map of the proposed special improvement district has been recorded pursuant to Cal. Sts. & Hy. Code Sections 3111 and 3113." Section 148: Section 3.32.320 (Establishment or Changing Appropriations Limit —Election on proposition —Adjustment) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.320 Establishment or Changing Appropriations Limit —Election on proposition —Adjustment,
.::

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The City Council may submit a proposition to establish or change the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIi B of the California Constitution, of a special improvement district to the qualified electors of a proposed or established district. The proposition establishing or changing the appropriations limit shall become effective if approved by the qualified electors voting on the proposition and shall be adjusted for changes in the cost of living and changes in populations, as defined by Cal. Gov. Code Section 7901 subdivisions (b) and (c), except that the change in population may be estimated by the City Council in the absence of an estimate by the Department of Finance, and in accordance with Section 1 of Article XIII B of the California Constitution. For purposes of adjusting for changes in population, the population of the district shall be deemed to be at least one person during each calendar year."
Section 149: Subsection (A) of Section 3.32.330 (Special Tax Levy —Election — Voter Qualifications —Ballots) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"A. The City Council shall then submit the levy of any special taxes to the qualified electors of the proposed special improvement district subject to the levy or to the qualified electors of the territory to be annexed by the special improvement district subject to the levy in the next general election or in a special election to be held, notwithstanding any other requirement, including any requirement that elections be held on specified dates, contained in the Cal. Elec. Code, at least ninety (90) days, but not more than one hundred eighty (180) days, following the adoption of the resolution of formation. The City Council shall provide the resolution of formation, a certified map of sufficient scale and clarity to show the boundaries of the district, and a sufficient description to allow the election official to determine the boundaries of the district to the official conducting the election within three (3) business days after the adoption of the resolution of formation. Assessor's parcel numbers for the land within the district shall be included if it is a landowner election or the district does not conform to an existing district's boundaries and if requested by the official conducting the election. If the election is to be held less than one hundred twenty-five (125) days following the adoption of the resolution of formation, the concurrence of the election official conducting the election shall be required. However, any time limit specified by this section or requirement pertaining to the conduct of the election, including any time limit or requirement applicable to any election conducted pursuant to Article VI of this chapter, may be waived with the unanimous consent of the qualified electors of the proposed district and the concurrence of the election official conducting the election." Section 150: Subsection (A) of Section 3.32.340 (Election Laws Governing — Ballot Materials) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:

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"A. Except as otherwise provided in this Code, the provisions of law regulating elections of the City, insofar as they may be applicable, shall govern all elections conducted pursuant to this Code. Except as provided in subsection (B) of this section, there shall be prepared and included in the ballot material provided to each voter, an impartial analysis pursuant to Cal. Elec. Code Section 9280, and arguments and rebuttals, if any, pursuant to Cal. Elec. Code Sections 9281 to 9287." Section 151: Section 3.32.370 (Recordation and Notice of Special Tax Lien — Site of Record) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
" 3.32.370 Recordation and Notice of Special Tax Lien —Site of Record.

Upon a determination by the City Council that the requisite two-thirds of votes cast in an election held pursuant to Section 3.32.330 are in favor of levying the special tax, the Clerk shall record the notice of special tax lien provided for in Cal. Sts. & Hy. Code Section 3114.5 whereupon the lien of the special tax shall attach as provided in Cal.

Sts. & Hy. Code Section 3115.5. The notice of special tax lien shall be recorded in the office of the County Recorder in each County in which any portion of the district is located."
Section 152: Section 3.32.380 (Application of California Streets and Highway Code With Respect to Special Taxes —Filing) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.380 Application of California Streets and Highway Code With Respect to Special Taxes —Filings.

Cal. Sts. & Hy. Code section 3100 et seq. applies with respect to any proceedings undertaken pursuant to this Code. This Code is a "principal act" as that term is defined in Cal. Sts. & Hy. Code Section 3100."
Section 153:Subsection (C) of Section 3.32.520 (Hearing —Time —Abandonment of Proceeding or Submission of Question to Qualified Electors —Determination of Legal Effect of Proposed Levy or of Changes in Facilities and Services —Notice of Changes) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"C. Upon adoption of a resolution of change, the Clerk shall record notice of the changes pursuant to Cal. Sts. & Hy. Code Section 3117.5."

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Section 154: Subsection (B) of Section 3.32.530 (Dissolution of Special Improvement District —Findings —Dissolution of Liens) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"B. That the district has no authorization to levy any special tax. Upon dissolving a district, the City Council shall cause an addendum to be recorded to the notice of special tax lien recorded pursuant to Cal Sts & Hy. Code Section 3114.5 which shall state that the special improvement district and all associated liens, if any, have been dissolved."
Section 155: Section 3.32.550 (Adoption of Resolution of Intention) of Chapter

3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.550 Adoption of Resolution of Intention.

If the City Council determines that public convenience and necessity require that territory be added to an existing special improvement district, or if the voters residing within certain territory or owners of land there request the City Council to include territory within the district, the City Council may adopt a resolution of intention to annex the territory or to provide for future annexation of the territory." Section 156: Section 3.32.600 (Continuance and Duration of Hearing — Abandonment of Proceedings —Submission of Special Tax Question to Electors — Annexation of Territory --Effectiveness of Ballots Contingent on Passage of Other Ballot Measures) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.600 Continuance and Duration of Hearing —Abandonment of Proceedings -- Submission of Special Tax Question to Electors —Annexation of Territory — Effectiveness of Ballots Contingent on Passage of Other Ballot Measures.

A. The hearing may be continued from time to time but shall be completed within thirty (30) days, provided that the City Council may extend that time up to six (6) months if it determines that it is in the public interest to do so. At the conclusion of the hearing, the City Council may abandon the proceedings, or may, after passing upon all protests, submit the question of levying a special tax within the area proposed to be annexed to the existing special improvement district to the qualified electors of the area proposed to be annexed as specified in Article III of this chapter, or may provide for the annexation of territory proposed for annexation in the future upon the unanimous approval of the 6-91

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owner or owners of each parcel or parcels at the time that the parcel or parcels are annexed, without additional hearings.

B. Notwithstanding any other provision of law, when the question of levying a special tax within the areas proposed to be annexed into an existing special improvement district appears on the same ballot as the question of annexation of the same territory to a school district, the effectiveness of each ballot measure may be made contingent on the passage of the other ballot measure."
Section 157: Section 3.32.610 (Addition of Territory With Full Legal Effect -- Special Tax Levy) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.610 Addition of Territory With Full Legal Effect —Special Tax Levy.

A. After the canvass of returns of any election conducted in accordance with Section

3.32.600, the City Council shall determine that the area proposed to be annexed is added to and part of the existing special improvement district with full legal effect, and the City Council may levy any special tax within the annexed territory, as specified in the resolution of intention to annex adopted pursuant to Section 3.32.550, if two-thirds of the votes cast on the proposition are in favor of levying the special tax.

B. Upon a determination by the City Council that the area proposed to be annexed is added to the existing special improvement district, the Clerk shall record notice of the annexation pursuant to Cal. Sts. & Hy. Code Section 3117.5." Section 158: Section 3.32.630 (Ordinance —Tax Rate and Apportionment — Exemption of Governmental Properties and Entities From Special Tax —Use of Tax Proceeds —Tax Collection, Penalties, etc. —Lien to Secure Levy of Special Taxes) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
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"3.32.630 Ordinance ---Tax Rate and Apportionment —Exemption of Governmental Properties and Entities From Special Tax —Use of Tax Proceeds --Tax Collection, Penalties, etc. —Lien to Secure Levy of Special Taxes.

After a special improvement district has been created and authorized to levy specified special taxes pursuant to Article III, Article IV, or Article V of this chapter, the City Council may, by ordinance, levy the special taxes at the rate and apportion them in the manner specified in the resolution adopted pursuant to Article III, Article IV, or Article V of this chapter. The City Council may provide, by resolution, for the levy of the special tax in the current tax year or future tax years at the same rate or at a lower rate than the rate provided by ordinance, if the resolution is adopted and a certified list of all parcels subject to the special tax levy including the amount of the tax to be levied on each parcel for the applicable tax year, is filed by the Clerk or other official designated by the City Council with the County Auditor on or before the 10th day of August of that tax year. The Clerk or other official designated by the City Council may file the certified list after the 10th of August but not later than the 21 st of August if the Clerk or other official obtains prior written consent of the County Auditor. Properties or entities of the State, federal, or other local governments shall, except as otherwise provided in Section

3.32.160, be exempt from the special tax. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in the resolution of formation to establish a district adopted pursuant to Section 3.32.290 or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment of an existing special tax as provided in Section

3.32.480. The proceeds of any special tax may only be used to pay, in whole or part, the cost of providing public facilities, services, and incidental expenses pursuant to this Code. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedures, sale, and lien priority in case of delinquency as is provided for ad valorem taxes, unless another procedure has been authorized in the resolution of formation establishing the district and adopted by the City Council. The tax collector may collect the special tax at intervals as specified in the resolution of formation, including intervals different from the intervals at which the ordinary ad valorem property taxes are collected. The tax collector may deduct the reasonable administrative costs incurred in collecting the special tax.

All special taxes levied by a special improvement district shall be secured by the lien imposed pursuant to Cal. Sts. & Hy. Code Section 3115.5. This lien shall be a continuing lien and shall secure each levy of special taxes. The lien of the special tax shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied, and canceled in accordance with Section 3.32.690 or until the special tax ceases to be levied by the City Council in the manner provided in Section 3.32.430. If any portion of a parcel is encumbered by a lien pursuant to this Code, the entirety of the parcel shall be encumbered by that lien."
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Section 159: Section 3,32.640 (Preparation of Current Roll of Special Tax Levy Obligations —Designation of Responsible Office —Estimation of Future Special Tax Levies —Liability for Inaccurate Estimates —Notice of Special Tax —Form) of Chapter

3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.640 Preparation of Current Roll of Special Tax Levy Obligations — Designation of Responsible Office —Estimation of Future Special Tax Levies — Liability for Inaccurate Estimates —Notice of Special Tax —Form.

A. The City Council shall designate an office, department, or bureau of the City which shall be responsible for annually preparing the current roll of special tax levy obligations, by assessor's parcel number, on nonexempt property within the district and which will be responsible for estimating future special tax levies.

The designated office, department, or bureau shall establish procedures to promptly respond to inquiries concerning current and future estimated tax liability. Neither the designated office, department, or bureau, nor the City Council, shall be liable if any estimate of future tax liability is inaccurate, nor for any failure of any seller to request a notice of special tax or to provide the notice to a buyer.

B. For purposes of enabling sellers of real property subject to the levy of special taxes to satisfy the notice requirements of Cal. Civ. Code Section 1102.6a, subdivision (b), the designated office, department, or bureau shall furnish a notice of special tax to any individual requesting the notice or any owner of property subject to a special tax levied by the City within five (5) business days of receiving a request for such notice. The City may charge a reasonable fee for this service not to exceed ten dollars ($10.00).

C. 1. The notice shall contain the heading "NOTICE OF SPECIAL TAX" in no smaller than eight -point type, and shall be in substantially the following form. The form may be modified as needed to clearly and accurately consolidate information about the tax structure and other characteristics of two or more districts that levy or are authorized to levy special taxes with respect to the lot, parcel, or unit. The notice shall be completed by the designated office, department, or bureau except for the signatures and date of signing:

NOTICE OF SPECIAL TAX

CITY OF NEWPORT BEACH
SPECIAL IMPROVEMENT DISTRICT NO. COUNTY OF ORANGE, CALIFORNIA TO: THE PROSPECTIVE -PURCHASER OF THE REAL PROPERTY KNOWN AS:

Ordinance No. 2023-

THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR PURCHASING THIS PROPERTY.

This property is subject to a special tax, which is in addition to the regular property taxes and any other charges and benefit assessments on the parcel. This special tax may not be imposed on all parcels within the City of Newport Beach. If you fail to pay this tax when due each year, the property may be foreclosed upon and sold. The tax is used to provide public facilities or services that are likely to particularly benefit the property.

YOU SHOULD TAKE THIS TAX AND THE BENEFITS FROM THE PUBLIC

FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY.

2. The maximum special tax which may be levied against this parcel to pay for public facilities is $ during the - tax year. This amount will increase by percent per year after that (if applicable). The special tax will be levied each year until all of the authorized facilities are built and all special tax bonds are repaid, but in any case not after the tax year.

An additional special tax will be used to pay for ongoing services, if applicable. The maximum amount of this tax is dollars ($ ) during the - tax year. This amount may increase by (if applicable), and may be levied until the - tax year (or forever, as applicable.)

3. The authorized facilities which are being paid for by the special taxes, and by the money received from the sale of bonds which are being repaid by the special taxes, are:
[identify the facilities]
These facilities may not yet have all been constructed or acquired and it is possible that some may never be constructed or acquired.

In addition, the special taxes may be used to pay for costs of the following services:

YOU MAY OBTAIN A COPY OF THE RESOLUTION OF FORMATION WHICH

AUTHORIZED CREATION OF THE SPECIAL IMPROVEMENT DISTRICT, AND

WHICH SPECIFIES MORE PRECISELY HOW THE SPECIAL TAX IS APPORTIONED

AND HOW THE PROCEEDS OF THE TAX WILL BE USED, FROM THE CITY OF NEWPORT BEACH BY CALLING (telephone number). THERE MAY BE A

CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE ESTIMATED
REASONABLE COST OF PROVIDING THE DOCUMENT.

I (WE) ACKNOWLEDGE THAT I (WE) HAVE RECEIVED A COPY OF THIS NOTICE. I (WE) UNDERSTAND THAT I (WE) MAY TERMINATE THE CONTRACT TO

PURCHASE OR DEPOSIT RECEIPT AFTER RECEIVING THIS NOTICE FROM THE OWNER OR AGENT SELLING THE PROPERTY. THE CONTRACT MAY BE

TERMINATED WITHIN THREE DAYS IF THE NOTICE WAS RECEIVED IN PERSON

OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED IN THE MAIL BY GIVING 6-95

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WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER OR AGENT SELLING THE PROPERTY.

I• IN=
Section 160: Subsections (A) and (B) of Section 3.32.660 (Sale or Lease of Lot, Parcel or Unit of Subdivision —Notice of Special Tax —Form —Termination of Agreement —Violations and Penalties) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code are hereby amended to read as set forth in the quotations below:
"A. If a lot or parcel, or unit of a subdivision is subject to a special tax levied pursuant to this Code, the subdivider, his or her agent, or representative, shall not sell, or lease for a term exceeding five (5) years, or permit a prospective purchaser or lessor to sign a contract of purchase or a deposit receipt or any substantially equivalent document in the event of a lease with respect to the lot, parcel, or unit, or cause it to be sold or leased for a term exceeding five (5) years, until the prospective purchaser or lessee of the lot, parcel, or unit has been furnished with and has signed a written notice as provided in this section. The notice shall contain the heading "NOTICE OF SPECIAL TAX" in no smaller than 8-point type, and shall be in substantially the following form, although the form may be modified as needed to clearly and accurately consolidate information about the tax structure and other characteristics of two or more districts that levy or are authorized to levy special taxes with respect to the lot, parcel, or unit:

NOTICE OF SPECIAL TAX

CITY OF NEWPORT BEACH
SPECIAL IMPROVEMENT DISTRICT NO. COUNTY OF ORANGE, CALIFORNIA TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS:
[address of parcel number]

THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR ENTERING INTO A CONTRACT TO PURCHASE THIS PROPERTY. THE SELLER IS REQUIRED TO

GIVE YOU THIS NOTICE AND TO OBTAIN A COPY SIGNED BY YOU TO INDICATE THAT YOU HAVE RECEIVED AND READ A COPY OF THIS NOTICE.

1. This property is subject to a special tax, which is in addition to the regular property taxes and any other charges, fees, special taxes, and benefit assessments on the parcel. It is imposed on this property because it is a new development, and may not be imposed generally upon property outside of this new development. If you fail to pay this tax when due each year, the property may be foreclosed upon and sold. The tax is used to provide public facilities or services that are likely to particularly benefit the property.

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YOU SHOULD TAKE THIS TAX AND THE BENEFITS FROM THE PUBLIC

FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY.

2. The maximum special tax which may be levied against this parcel to pay for public facilities is $ during the - tax year, This amount will increase by percent per year after that (if applicable). The special tax will be levied each year until all of the authorized facilities are built and all special tax bonds are repaid, but in any case not after the - tax year. An additional special tax will be used to pay for ongoing service costs, if applicable. The maximum amount of this tax is dollars ($ ) during the - tax
year. This amount may increase by , (if applicable), and that part may be levied until the - tax year (or forever, as applicable.)

3. The authorized facilities which are being paid for by the special taxes, and by the money received from the sale of bonds which are being repaid by the special taxes, are:
[identify facilities]
These facilities may not yet have all been constructed or acquired and it is possible that some may never be constructed or acquired.

In addition, the special taxes may be used to pay for costs of the following services:

YOU MAY OBTAIN A COPY OF THE RESOLUTION OF FORMATION WHICH

AUTHORIZED CREATION OF THE SPECIAL IMPROVEMENT DISTRICT, AND

WHICH SPECIFIES MORE PRECISELY HOW THE SPECIAL TAX IS APPORTIONED

AND HOW THE PROCEEDS OF THE TAX WILL BE USED, FROM THE CITY OF NEWPORT BEACH BY CALLING (telephone number). THERE MAY BE A

CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE REASONABLE COST OF PROVIDING THE DOCUMENT.

I (WE) ACKNOWLEDGE THAT I (WE) HAVE READ THIS NOTICE AND RECEIVED A

COPY OF THIS NOTICE PRIOR TO ENTERING INTO A CONTRACT TO PURCHASE,

OR DEPOSIT RECEIPT WITH RESPECT TO THE ABOVE -REFERENCED PROPERTY. I (WE) UNDERSTAND THAT I (WE) MAY TERMINATE THE CONTRACT

TO PURCHASE OR DEPOSIT RECEIPT WITHIN THREE DAYS AFTER RECEIVING

THIS NOTICE IN PERSON OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED IN

THE MAIL BY GIVING WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER, SUBDIVIDER OR AGENT SELLING THE PROPERTY.

DATE:

B, 'Subdivision,' as used in subsection (A), means improved or unimproved land that is divided or proposed to be divided for the purpose of sale, lease, or financing, whether immediate or future, into two or more lots, parcels, or units and includes a condominium 6-97

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project, as defined by Cal. Civ, Code Section 6542, a community apartment project, a stock cooperative, and a limited- equity housing cooperative, as defined in Cal. Bus & Prof. Code Sections 11004, 11003.2, and 11003.4, respectively." Section 161: Section 3.32.710 (Inclusion of Certain Costs and Estimated Costs in Proposed Bonded Indebtedness) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.710 Inclusion of Certain Costs and Estimated Costs in Proposed Bonded Indebtedness.

The amount of the proposed bonded indebtedness may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the proposed debt is to be incurred, including, but not limited to, the estimated costs of construction or acquisition of buildings, or both; acquisition of land, rights -of -way, water, sewer, or other capacity or connection fees; satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued pursuant to this Code, architectural, engineering, inspection, legal, fiscal, and financial consultant fees; bond and other reserve funds; discount fees; interest on any bonds of the district estimated to be due and payable within two (2) years of issuance of the bonds; election costs; and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other credit enhancements costs, and printing costs."
Section 162: Section 3.32,720 (Notice of Hearing on Resolution) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
°3.32.720 Notice of Hearing on Resolution.

The Clerk shall publish a notice of the hearing pursuant to Cal. Gov. Code Sections 6060 and 6061 in a newspaper of general circulation circulated within the district. The notice shall state:

A. The time and place of the hearing on the proposal to issue debt.

B. That at the hearing the testimony of all interested persons, including all persons owning property in the area, for or against the proposed debt issuance, will be heard."

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Section 163:Section 3.32.870 (Price of Property Sold) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.870 Price of Property Sold.

Property sold hereunder may not be sold for less than the amount of the judgment plus post judgment interest and authorized costs without the consent of the owners of a majority by value of the outstanding bonds."
Section 164: Section 3.32.900 (Special Tax or Charge for Outstanding Bonded Debt) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.900 Special Tax or Charge for Outstanding Bonded Debt.

When the City Council provides for the fixing and levying of special taxes and charges for the special improvement district it shall also provide for the fixing and levying of that amount of special taxes and charges within the special improvement district which is required for the payment of the principal of and interest on any outstanding bonded debt of the special improvement district, including any necessary replenishment or expenditure of bond reserve funds or accumulation of funds for future bond payments, including any amount required by federal Law to be rebated to the United States on that bonded debt. The special tax or charge shall be levied and collected by the same officers and at the same time and in the same manner that all other special taxes and charges are levied and collected for the special improvement district or in any other manner specified by the City Council. The special taxes and charges shall not exceed the authority granted by Article III and Article IV of this chapter. All of the collections for payment of principal of and interest on bonds shall be paid into the special improvement district bond fund and reserve or other fund for the particular special improvement district and shall be used solely for the payment of the principal of and interest on the outstanding bonds of the special improvement district." Section 165: Section 3.32.910 (Action to Determine Validity of Bonds or Special Tax Levy) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.910 Action to Determine Validity of Bonds or Special Tax Levy.

An action to determine the validity of bonds issued pursuant to this Code or the validity of any special taxes levied pursuant to this Code may be brought pursuant to Cal. Code Civ. Proc. Part 2, Title 10, Chapter 9, commencing with Section 860, 2 but shall, 10120101

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notwithstanding the time limits specified in Cal. Code Civ. Proc. Section 860, be commenced within thirty (30) days after the voters approve the issuance of the bonds or the special tax if the action is brought by an interested person pursuant to Cal. Code Civ. Proc. Section 863. Any appeal from a judgment in that action or proceeding shall be commenced within thirty (30) days after entry of judgment." Section 166: Section 3.32,930 (Variable Interest Rate) of Chapter 3.32 (Special Improvement District Financing Code) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.32.930 Variable Interest Rate.

The City Council may provide that bonds shall bear a variable interest rate, and for the manner and intervals in which the rate shall vary. The variable rate shall not exceed the maximum rate permitted by Cal. Gov. Code Section 53531 or any other applicable provision of law limiting the maximum interest rate on bonds." Section 167:The Table of Contents for Chapter 3.33 (Assessment District of Alternative Procedures) of Title 3 of the Code is hereby amended to read as follows:

Chapter 3.33

ASSESSMENT DISTRICT ALTERNATIVE PROCEDURES
Sections:

3.33.005

3.33.010

3.33.020

3.33.030

3.33.040

3.33.050

3.33.060

3.33.070

3.33.080

3.33.090
Short Title.

Provisions Not Exclusive —Applicability of Laws —Conflicting Provisions.

Definitions.

Declaration of Policy.

Authority and Procedure.

Assessment of Possessory Interests.

Method of Collection —Alternative Methods.

Form of Bonds —Maturities.

Authority to Covenant to Secure Bonds.

Actions or Proceedings to Attack Assessments —Time for
Perfection of Appeal.

Section 168: Section 3.33.020 (Definitions) of Chapter 3.33 (Assessment District Alternative Procedures) of Title 3 of the Code is hereby amended to read as follows:

3.33.020 Definitions.
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Unless the context otherwise requires, the definitions contained in this section shall govern the construction of this chapter, including all provisions incorporated into this chapter by reference.
"Act" means the Municipal Improvement Act of 1913, as amended (Streets and Highways Code Section 10000 and following).
"Bond" or "bonds" means any binding obligation to pay or repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts. "Bond Act" means the Improvement Bond Act of 1915 (the "Bond Act"), (Cal. Sts. & Hy Code, Division 10, Part 1, Section 8500 and following). "Engineer" means the City Engineer or any other person designated by the City Council for the purposes of this chapter, including any officer, board, or employee of the City or any private person or firm specially employed by the City as engineer for purposes of this chapter. Notwithstanding the foregoing, the engineer shall be a registered professional engineer as defined in Cal. Gov. Code Section 53750(l). "Implementation Act" means the Proposition 218 Omnibus implementation Act, being Article 4.6 of Chapter 4 of Part 1 of Division 2 of Title 5 of the Cal. Gov. Code Section 53750 and following.
"Implementation Act" means the Proposition 218 Omnibus Implementation Act, being Article 4.6 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (Section 53750 and following).
"Land," "parcel," "parcel of land," "property," or "subdivision" means real property in any form, including a possessory interest.
"Landowner," "owner of land," or "owner" means any person shown as the owner of land on the last equalized assessment roll or otherwise known to the city to be the owner of the land. The City Council has no obligation to obtain other information as to the ownership of the land, and its determination of ownership shall be final and conclusive for the purposes of this chapter.
"Possessory interest" means a leasehold interest in tax-exempt real property for a term of thirty-five (35) years or more (including renewal options). For purposes of this provision, tax-exempt real property means real property that is owned in fee by the 6-101

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governmental entity including, but not limited to, the federal government, the State, county or City.

Section 169: Section 3.33,060 (Method of Collection —Alternative Methods) of Chapter 3.33 (Assessment District Alternative Procedures) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.33.060 Method of Collection —Alternative Methods.

Unless an alternative method of collection of the assessments has been established as authorized by this section, the assessments levied pursuant to this chapter shall be collected at the same time and in the same manner as real property taxes are collected, and all laws providing for the collection and enforcement of real property taxes shall apply to the collection and enforcement of the assessments. The City Council in its discretion may, by resolution, establish an alternative method of collection of the assessments. Notwithstanding the foregoing, assessments levied pursuant to this chapter for which bonds are to be issued may be paid within thirty (30) days from the date of recording the assessment in the Office of the Public Works Director." Section 170: Subsection (A) of Section 3.33.080 (Authority to Covenant to Secure Bonds) of Chapter 3.33 (Assessment District Alternative Procedures) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"A. Whenever bonds are to be sold and delivered under this chapter with respect to an assessment district, the City Council may, by resolution adopted prior to the sale and delivery of bonds, take any action the City Council deems appropriate to secure the timely payment of the principal of and interest on the bonds, including any one or more of the following:

1. Covenant for the benefit of bondholders that the City shall not terminate any possessory interest subject to an assessment for which the bonds were sold; or

2. Notwithstanding Section 8769 of the Bond Act, covenant for the benefit of bondholders to pay all or any portion of the principal of and interest on the bonds necessary because of delinquencies in the payment of one or more assessment installments or the inability to collect one or more assessment installments." Section 171: Section 3,33.100 (Severability) of Chapter 3.33 (Assessment District Alternative Procedures) of Title 3 of the Code is hereby deleted in its entirety.

Section 172: The Table of Contents for Chapter 3.34 (Marine Charter Passenger Tax) of Title 3 of the Code is hereby amended to read as follows:
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Chapter 3.34

MARINE CHARTER PASSENGER TAX
Sections:

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3.34.010 Definitions.

3.34.020 Tax Imposed.

3.34.025 Exemptions.

3.34.030 Liability for Tax.

3.34.040 Registration.
3,34.050 Collection of Tax by Operator —Receipt to Passenger —Rules for Collection.

3.34.060 Reporting and Remitting.

3.34.070 Failure to Collect and Report —Determination by Revenue Manager.

3.34.080 Penalties and Interest.

3.34.090 Appeals.

3.34.100 Tax Deemed a Debt.

3.34.110 Records.

3.34.120 Violation by Operator a Misdemeanor.

Section 173:Section 3.34.010 (Definitions) of Chapter 3.34 (Marine Charter Passenger Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:

3.34.010 Definitions.

For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows:

A. "Charter" or "chartered" shall mean any contract arrangement, agreement or lease pursuant to which consideration is paid to the owner or operator of a vessel for the right to use, or the right of carriage on, any vessel which will operate, at least in part, on the waters of Newport Harbor provided, however, the term "charter" shall not include those activities which are exempt from the permit requirements of Chapter 17.10.

B. "Charter fee" shall mean, with respect to charter vessels serving the public on a ticketed passenger basis, the total cost, without deductions, required for passage on the vessel. With respect to all other charters, charter fee shall be the total consideration paid to the owner, operator, and all persons providing any supplies, entertainment, dock fees or on -board service in connection with the charter. 6-103

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C. "Chartered vessel" shall mean any passenger vessel or small vessel as defined by U.S. Code Title 46 Section 2101.

D. "Marine activities permittee" shall mean any charter business authorized to conduct marine charters pursuant to Chapter 17.10.

E. "Operator" shall mean any person who, on behalf of, or pursuant to agreement with the owner, arranges for the charter of any vessel or the issuance of any marine activities permit.

F. "Owner" shall mean any person who owns any chartered vessel.

G. "Passenger" shall mean every natural person carried on any chartered vessel that has been chartered other than the owner, and any employee, agent, representative, or subcontractor of the owner or operator who has not paid consideration for carriage and who is paid consideration for on -board services.

H. "Out of town vessel" shall mean any vessel which, for property tax purposes, has a situs outside Newport Beach.

I. "Sport fishing vessel" shall mean a documented vessel carrying or transporting people for hire for commercial passenger fishing purposes which holds a certificate of inspection from the United States Coast Guard and a commercial fishing boat license from the California Department of Fish and Game.

J. "Ticket Price" shall mean either the product of the charter fee divided by the number of passengers, or the actual ticket price imposed per passenger, whichever is greater.

K. "Vessel" shall mean a passenger vessel or small passenger vessel as defined by U.S. Code Title 46 Section 2101.

Section 174: Section 3.34.020 (Tax Imposed) of Chapter 3.34 (Marine Charter Passenger Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.34.020 Tax Imposed.

A. There is hereby imposed a tax upon every passenger of each chartered vessel.

The tax shall be the obligation of, and paid by, the passenger to the owner or operator, and shall be stated as a separate charge on agreements for charters. The amount of the tax shall be:
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1. Fifty cents ($0.50) for ticket prices between twenty-six dollars ($26.00) and fifty dollars ($50.00);

2. One dollar ($1.00) for ticket prices greater than fifty dollars ($50.00); and B. Starting July 1, 1996, the ticket price on which the tax is imposed along with the tax and surcharge shall be automatically adjusted each July 1, to reflect the percentage, rounded to the nearest quarter, in the cost of doing business, as measured by the CPI." Section 175: Section 3.34.030 (Liability for Tax) of Chapter 3.34 (Marine Charter Passenger Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.34.030 Liability for Tax.

In addition to the passenger of a vessel chartered for consideration, the operator or owner shall be liable for the tax imposed pursuant to this chapter in the event of any failure to collect the tax from the passenger and to remit the tax to the City as provided in this chapter. Liability of the passenger shall not be extinguished until the tax has been paid to the City or the passenger presents the City a receipt from the operator or owner which evidences payment of the tax."
Section 175: Subsections (A), (B) and (C) of Section 3.34.040 (Registration) of Chapter 3.34 (Marine Charter Passenger Tax) of Title 3 of the Code hereby amended to read as set forth in the quotations below:
"A. No person shall conduct any charter for which a marine activities permit is required pursuant to the provisions of Chapter 17.10 of this Code without first applying for, and receiving, a certificate of registration pursuant to the provisions of this chapter.

B. Every owner or operator who applies for a marine activities permit pursuant to Chapter 17.10 of this Code shall apply for, and obtain, a certificate of registration from the Revenue Manager. The owner or operator shall apply for the certificate of registration on forms provided by the City. The Revenue Manager shall issue a certificate of registration upon completion, execution and submittal of the form. The owner or operator shall comply with all standard conditions specified on the registration form or certificate of registration.

C. Every commercial marine activities permittee shall register with the Revenue Manager within fifteen (15) days of commencing operations in the City. The certificate of registration shall be issued upon completion, execution and submittal of the form provided by the City. The marine activities permittee shall comply with all standard conditions on the certificate of registration."
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Section 176: Subsections (A) and (B) of Section 3.34.060 (Reporting and Remitting) of Chapter 3.34 (Marine Charter Passenger Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"A. Each marine activities permittee, owner or operator shall, on or before the last day of the month following the close of the reporting period, as established by the Finance Director, file a return with the Revenue Manager on forms provided by the City, listing the total number of passengers carried during the reporting period and the total tax collected by the permittee. The full amount of the tax collected shall be remitted to the Revenue Manager at the time the return is filed. Returns and tax payments shall be due immediately upon cessation of business for any reason. All taxes collected by permittees shall be held in trust for the account of the City until payment thereof is made to the Revenue Manager.

B. Each owner or operator conducting charters pursuant to Chapter 17.10 of this Code shall pay the tax upon obtaining the marine activities permit. No marine activities permit required by Chapter 17.10 of this Code shall be issued until the required marine charter tax has been paid."
Section 177: Section 3.34.070 (Failure to Collect and Report —Determination by Revenue Manager) of Chapter 3.34 (Marine Charter Passenger Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.34.070 Failure to Collect and Report —Determination by Revenue Manager.

A. If any owner or operator shall fail to collect all or a portion of the tax due pursuant to this chapter or shall fail to make, within the time provided in this chapter, any report and remittance of such tax, or any portion thereof, required by the provisions of this chapter, the Revenue Manager shall proceed in such manner as he/she may deem best to obtain the facts and information on which to base his/her estimate of the tax due. As soon as the Revenue Manager shall procure such facts and information as he/she is able to obtain upon which to base the assessment of any such tax imposed by the provisions of this chapter and payable by any owner or operator who has failed or refused to collect the same and to make such report and remittance, the Revenue Manager shall proceed to determine and assess against such owner or operator the tax, interest, and penalties provided for by the provisions of this chapter. The Revenue Manager shall give notice of the amount so assessed by serving it in the manner provided in Section 1.08.080.

B. Such owner or operator may, within ten (10) days after the service or mailing of such notice, make an application in writing to the Revenue Manager for a hearing on the amount assessed. If an application by the owner or operator for a hearing is not made 6-106

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within the time prescribed, the tax, interest, and penalties, if any, determined by the Revenue Manager shall become final and conclusive and immediately due and payable.

If such a request for hearing is made, the Revenue Manager shall give not less than five (5) days' written notice in the manner prescribed in this section to the owner or operator to show cause at a time and place fixed in such notice why the amount specified herein should not be fixed for such tax, interest, and penalties. At such hearing the owner or operator may appear and offer evidence why the tax, interest, and penalties should not be so fixed. After the hearing the Revenue Manager shall determine the proper tax, interest and penalty due, and shall thereafter give written notice to the owner or operator in the manner prescribed in this section. The amount determined to be due shall be payable after fifteen (15) days unless an appeal is filed pursuant to Section

3.34.090 of this chapter."
Section 178: Section 3,34.080 (Penalties and Interest) of Chapter 3.34 (Marine Charter Passenger Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.34.080 Penalties and Interest.

A. Original Delinquency. Any owner or operator who fails to collect, report and remit any tax imposed by the provisions of this chapter within the time required shall pay a penalty in the amount of ten (10) percent of the tax in addition to the amount of the tax.

B. Continued Delinquency. Any owner or operator who fails to collect and remit any tax and remit any penalty on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second penalty in the amount of ten (10) percent of the tax in addition to the amount of the tax and the ten (10) percent penalty first imposed.

C. interest. In addition to the penalties imposed, any owner or operator who fails to collect and remit any tax imposed by the provisions of this chapter shall pay interest at the rate of one and one-half (1 112) percent per month, or fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

D. Penalties and interest Merged with Tax. Every penalty imposed, and such interest as accrues, pursuant to the provisions of this section shall become a part of the tax required to be paid by the provisions of this chapter except such merger shall not affect the liability of an operator to pay tax it has failed to collect and remit." Section 179:Section 3.34.090 (Appeals) of Chapter 3.34 (Marine Charter Passenger Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
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"3.34.090 Appeals.

Any person aggrieved by any decision of the Revenue Manager with respect to the amount of tax, interest, penalties, assessed against the person, may appeal to the City Manager by filing a notice of appeal within fifteen (15) days after the service or mailing of the determination of the tax, penalties and interest due. The City Manager may preside over the appeal or, in the alternative, the City Manager may appoint a Hearing Officer to conduct the hearing, receive relevant evidence and submit findings and recommendations to the City Manager. The City Manager shall render a decision within fifteen (15) days of receiving the findings and recommendations of the Hearing Officer.

The findings of the City Manager shall be final and conclusive as to the City and shall be served upon the appellant in the manner prescribed in this chapter for the service of a notice of hearing. Any amount found to be due shall be immediately due and payable to the City upon the service of notice. The City Manager's decision is subject to judicial review pursuant to Cal. Code of Civ. Proc. section 1094.5." Section 180: Section 3.34.100 (Tax Deemed a Debt) of Chapter 3.34 (Marine Charter Passenger Tax) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"3.34.100 Tax Deemed a Debt.

The amount of any tax, penalty, or interest imposed by this chapter shall be deemed a debt due to the City by the persons required hereby to collect or to pay the same." Section 181: Section 3.34.130 (Severability) of Chapter 3.34 (Marine Charter Passenger Tax) of Title 3 of the Code is hereby deleted in its entirety.

Section 182: The Table of Contents for Chapter 3.36 (Cost Recovery for User Services) of Title 3 of the Code is hereby amended to read as follows:

Chapter 3.36

COST RECOVERY FOR USER SERVICES
Sections:

3.36.010
Findings.

3.36.020
Definitions.

3.36.030
Cost Recovery Percentages.

3.36.040
Late Fees and Charges.
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Section 183:Subsection (E) of Section 3.36.010 (Findings) of Chapter 3.36 (Cost Recovery for User Services) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"E. The City Council has fully complied with provisions of State and local law in establishing the cost recovery percentages specified in this chapter, including, Cal. Gov.

Code Section 66000 et seq., and Articles X111C and X111B of the State Constitution." Section 184: Subsection (A) of Section 3.36.030 (Cost Recovery Percentages) of Chapter 3.36 (Cost Recovery for User Services) of Title 3 of the Code is hereby amended to read as set forth in the quotations below:
"A. The municipal functions the City Council has determined to be user services and for which the City Council has initially determined the actual costs and the appropriate cost recovery percentage are described in the fee resolution. The cost recovery percentage appropriate for each user service shall be one hundred (100) percent with the exception of the user services listed in Exhibit "A" and those services for which the fee is limited by statute. The City Council may include in the fee resolution a schedule to phase in specific fee increases over a period not to exceed five (5) years." Section 185: Section 3.36.050 (Severability) of Chapter 3.36 (Cost Recovery for User Services) of Title 3 of the Code is hereby deleted in its entirety.

Section 186:The Table of Contents for Title 5 (Business Licenses and Regulations) of the Code is hereby amended to read as follows:

Title 5

BUSINESS LICENSES AND REGULATIONS
Chapters:

5.04 General Provisions

5.08 License Fee Categories

5.11 Special Regulations

5.12 Vehicles for Hire

5.14 Ambulance Regulations

5.15 Regulation of Newport Beach Police Official Tow Services

5.17 Taxicabs

5.20 Pawnbrokers, Secondhand Dealers and Junk Dealers

5.25 Operator License for Establishments Offering Alcoholic Beverages for On -Site Consumption in Combination with Late Hours, Entertainment, and/or Dance

5.28 Live Entertainment Establishments

5.32 Cafe Dances
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5.36 Hotel Registration

5.42 Solicitation

5.43 State Video Franchises

5.44 Cable Communications Franchises

5.46 Regulation of Commercial Film Production

5.48 Direct Alarm Monitoring System

5.49 Burglary —Robbery Alarm Systems

5.50 Massage Establishments

5.60 Paramedic Service User Fees

5.70 Newspaper Racks and Stands

5.80 Retail Sale of Firearms

5.90 Escort Service

5.95 Short Term Lodging Permit

5.96 Adult Oriented Business

5.97 Sidewalk Vending Program
Section 187: Section 5.04.010 (Definitions) of Chapter 5.04 (General Provisions) of Title 5 of the Code is hereby amended to read as follows:

5.04.010 Definitions.

A. "Business" shall include all activities engaged in or caused to be engaged in within the City, including any commercial or industrial enterprise, trade profession, occupation, vocation, calling or livelihood, including the rental of residential or commercial real estate, and every other kind of activity whether or not carried on for gain or profit, and whether or not engaged in as a principal or as an independent contractor, but shall not include the services rendered by an employee to his or her employer.

B. "Employee" shall mean all individuals who are engaged in the operation or conduct of any business and whose consideration for services rendered is in the form of a regular salary or wage.

C. "Employer" shall mean a person that employs one or more employees.

D. "Gross receipts" shall mean the total amounts actually received or receivable from sales and the total amounts actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise. Included in "gross receipts" shall be all receipts, cash, credits, and property of any kind or nature without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service cost, interest paid or payable, or losses or other expenses whatsoever.

Excluded from "gross receipts" shall be the following:
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1. Cash discounts allowed or taken on sales.

2. Credit allowed on property accepted as part of the purchase price and which property may later be sold, at which time the sales price shall be included as "gross receipts."

3. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser.

4. Such part of the sale price of property returned by purchasers upon rescission of a contract of sale as is refunded either in cash or by credit.

5. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded.

6. Amounts collected for others where the business is acting as an agent or trustee to the extent that such amounts are paid to those for whom collected, provided the agent or trustee has furnished the Finance Director with the names and addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustee.

7. Cash value of sales, trades or transactions between departments or units of the same business.

8. Transactions between a partnership and its partners.

9. Receipts from services or sales in transactions between affiliated corporations.

An affiliated corporation is a corporation:
a. Devoting a nonvoting stock of which is owned at least eighty (80) percent by such other corporation with which such transaction is had; or b. Which owns at least eighty (80) percent of the voting and nonvoting stock of such other corporation; or
c. At least eighty (80) percent of the voting and nonvoting stock of which is owned by a common parent corporation which also has such ownership of the corporation with which transaction is had.

10. Receipts from investments where the holder of the investment receives only interest and/or dividends.

11. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the licensee in the regular course of the licensee's business.
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E. "Operate" shall mean and include manage, control or carry on.

F. "Rental unit" shall mean and include all residential units except one which is the part-time or full-time residence of the owner, and no part thereof is offered or available for rent at any time during the license year.

G. "Sale" shall include the transfer, in any manner or by any means whatsoever, of title to property for a consideration; the serving, supplying or furnishing for a consideration of any property; and a transaction whereby the possession of property is transferred and the seller retains the title as security for the payment of the price shall likewise be deemed a sale. The foregoing definition shall not be deemed to exclude any transaction which is or which, in effect, results in a sale within the contemplation of law.

H. "Sworn statement" shall mean an affidavit sworn to before a person authorized to take oaths, or a declaration or certification made under penalty of perjury.

Section 188: Section 5.04.060 of (Exemptions —Exempt by Federal or State Law) of Chapter 5.04 (General Provisions) of Title 5 of the Code is hereby amended to read as set forth in the quotations below:
"5.04.060 Exemptions —Exempt by Federal or State Law.

Nothing in this chapter shall be deemed or construed to apply to any person transacting and carrying on any business exempt by virtue of the Constitution or applicable statutes of the United States or of the State from the payment of such taxes as are herein prescribed.

Any person claiming an exemption pursuant to this section shall file a sworn statement with the Finance Director stating the facts upon which exemptions are claimed, and in the absence of such statement substantiating the claim, such person shall be liable for the payment of the taxes imposed by this title.

The Finance Director shall, upon a proper showing contained in the sworn statement, issue a license to such person claiming exemption under this section without payment to the City of the license tax required by this title.

The Finance Director, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke any license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemption as provided herein. The Finance Director's determination shall be final as to the City but subject to judicial review pursuant to Cal. Code of Civ. Proc. Section 1094.5." 6-112

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Section 189: Section 5.04.090 (Minor's Exemptions) of Chapter 5.04 (General Provisions) of Title 5 of the Code is hereby amended to read as set forth in the quotations below:
"5.04.090 Minor's Exemptions.

Any person under eighteen years of age, whose annual gross receipts from any business done within the City are within the earned income threshold pursuant to Internal Revenue Service regulations, shall be exempt from the requirements of this chapter.

Within thirty (30) days of a request by the Finance Director, any person claiming an exemption pursuant to this section shall submit to the Finance Director documents requested by the Finance Director that show the person is a minor and that the annual gross receipts from any business done within the City are within the earned income threshold set forth in the Internal Revenue Service regulations. if the Finance Director determines additional evidence is necessary, the Finance Director shall notify the person seeking the exemption of the date and time of a hearing regarding the exemption. After the hearing, the Finance Director shall make a determination as to whether the exemption applies, and that determination shall be final as to the City but subject to judicial review pursuant to Cal. Code of Civ. Proc. Section 1094.5." Section 190: Section 5.04.100 (Exemption for Artists and Art Exhibits) of Chapter

5.04 (General Provisions) of Title 5 of the Code is hereby amended to read as set forth in the quotations below-
"5.04.100 Exemption for Artists and Art Exhibits.

A business license shall not be required of individual artists for the exhibition or display of paintings, sculpture, photographs, handmade jewelry or other fine arts. Any artist shall be exempt from the requirements of this title if the sales of his or her artwork within the City do not result in annual gross receipts in excess of four thousand nine hundred dollars ($4,900.00), automatically adjusted annually to reflect the percentage change in the cost of doing business as measured by the Consumer Price Index and rounded to the nearest dollar.

Within thirty (30) days of a request by the Finance Director, any person claiming an exemption pursuant to this section shall submit to the Finance Director documents requested by the Finance Director that show the person's annual gross receipts from any business done within the City are less than the amount to qualify for the exemption.

If the Finance Director determines additional evidence is necessary, the Finance Director shall notify the person seeking the exemption of the date and time of a hearing regarding the exemption. After the hearing, the Finance Director shall make a 6-113

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determination as to whether the exemption applies, and that determination shall be final as to the City but subject to judicial review pursuant to Cal. Code of Civ. Proc. Section 1094.5."
Section 191: Section 5.04.190 (Error in Terms Voids License) of Chapter 5.04 (General Provisions) of Title 5 of the Code is hereby amended to read as set forth in the quotations below:
"5.04.190 Error in Terms Voids License.

The payment of any license tax required by this title, its acceptance by the City, and the issuance of such license to any person shall not entitle the holder to carry on any business called for by the license unless the person has compiled with all requirements of this Code, or to carry on any business at any location that is illegal under State or federal law or contrary to the City's zoning regulations." Section 192: Subsection (B) of Section 5.04.290 (Enforcement —Right of Entry) of Chapter 5.04 (General Provisions) of Title 5 of the Code is hereby amended to read as follows:
"B. Right of Entry. The Finance Director and any police officer or City employee whose job includes the inspection of the business license shall have the power and authority to enter, free of charge, and during regular business hours, any place of business required to be licensed and demand an exhibition of its license certificate. No person having such license certificate issued in the person's possession or under the person's control shall willfully fail to exhibit the same on demand."
Section 193: Section 5.04.330 (Appeal) of Chapter 5.04 (General Provisions) of Title 5 of the Code is hereby amended to read as set forth in the quotations below:
"5.04.330 Appeal.

Any person aggrieved by any decision of the Finance Director with respect to the issuance or refusal to issue such license may appeal to the City Manager by filing a notice of appeal with the City Clerk. The City Manager shall thereupon fix a time and place for hearing such appeal. The City Clerk shall give notice to such person of the time and place of the hearing by serving the notice in the manner provided in Section

1.08.080. The City Manager shall have authority to determine all questions raised on such appeal. No such determination shall conflict with any substantive provision of this chapter. After the hearing, the City Manager shall make a determination, and that determination shall be final as to the City but subject to judicial review pursuant to Cal.

Code of Civ. Proc. Section 1094.5."
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Section 194: Subsection (E) of Section 5.08.005 (Business Tax Definitions) of Chapter 5.08 (License Fee Categories) of Title 5 of the Code is hereby deleted in its entirety.

Section 195: Section 5.08.010 (Business Tax —Out of Town Based Businesses) of Chapter 5.08 (License Fee Categories) of Title 5 of the Code is hereby amended to read as set forth in the quotations below:
"5.08.010 Business Tax —Out of Town Based Businesses.

Every out of town based business as defined by this chapter shall pay an annual business license tax as established by resolution of the City Council. The business license tax shall automatically be adjusted each year in July to reflect the percentage change, rounded to the nearest dollar, in the cost of doing business as measured by the Consumer Price Index."
Section 196: Section 5.08.020 (Business Tax —Residentially Based Businesses) of Chapter 5.08 (License Fee Categories) of Title 5 of the Code is hereby amended to read as set forth in the quotations below:
"5.08.020 Business Tax —Residentially Based Businesses.

Every residentially based business as defined by this chapter shall pay an annual business tax as established by resolution of the City Council. The business license tax shall automatically be adjusted each year in July to reflect the percentage change, rounded to the nearest dollar, in the cost of doing business as measured by the Consumer Price Index."
Section 197: Section 5.08.022 (Business Tax —Commercially Based Businesses) of Chapter 5.08 (License Fee Categories) of Title 5 of the Code is hereby amended to read as set forth in the quotations below:
"5.08.022 Business Tax —Commercially Based Businesses.

Every commercially based business as defined by this chapter shall pay an annual business tax as established by resolution of the City Council. The business license tax shall automatically be adjusted each year in July to reflect the percentage change, rounded to the nearest dollar, in the cost of doing business as measured by the Consumer Price Index."
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Section 198:The Table of Contents for Chapter 5.11 (Special Regulations) of Title 5 of the Code is hereby amended to read as follows:

Chapter 5.11

SPECIAL REGULATIONS
Sections:

5.11.010 Signs on Watercraft.

5.11.030 Selling Food Products on the Streets Prohibited.

5.11.040 Sale of Food Products on Public Beaches Prohibited.

5.11.070 Exception.

Section 199: Section 5,11.020 (Portable Food Stand or Street Kitchen) of Chapter 5.11 (Special Regulations) of Title 5 of the Code is hereby deleted in its entirety.

Section 200: Section 5.11.050 (Temporary Emergency Electrical Generators) of Chapter 5.11 (Special Regulations) of Title 5 of the Code is hereby deleted in its entirety.

Section 201: Section 5.11.060 (Delivery of Alcoholic Beverages in a Safety Enhancement Zone) of Chapter 5.11 (Special Regulations) of Title 5 of the Code is hereby deleted in its entirety.

Section 202:The Table of Contents for Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby amended to read as follows:

Chapter 5.12
VEHICLES FOR HIRE*
Sections:

5.12.010
Definitions.

5.12.015
Pedicab.

5.12.020
Certificate Required.

5.12.030
Application for Certificate.

5.12.040
Investigation.

5.12.050
Issuance of Certificates.

5.12.060
Grounds for Denial of Application.

5.12.070
Insurance.
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5.12.080 Revocation, Denial and Appeal.

Editor's note: Ordinance 97-39 amended Chapter 5.12 in its entirety.

Section 203: Section 5.12.010 (Definitions) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby amended to read as follows:

5.12.010 Definitions.

For the purpose of this chapter, the words and phrases herein defined shall be construed in accordance with the following definitions, unless it is apparent from the context that a different meaning is intended.

Certificate. The term "certificate" means a certificate of public convenience and necessity issued pursuant to this chapter.

Pedicab. The term "pedicab" shall have the same meaning as Cal. Veh. Code Section 467.5.

Public Transportation Vehicle. The term "public transportation vehicle" means a motor - propelled vehicle, not otherwise defined in this section, used in the business of transporting passengers over the streets of the City for hire, which operates exclusively within the boundaries of the City.

Sight -Seeing Automobile. The term "sight-seeing automobile" means a motor -propelled vehicle used for the purpose of transporting passengers over the streets for sight- seeing, showing points of interest or exhibiting lands, houses, property for other things or objects when a fee is charged or compensation is obtained from passengers or elsewhere.

Vehicle for Hire. The term "vehicle for hire" means a public transportation vehicle or sight-seeing automobile.

Section 204: Section 5.12.015 (Pedicab) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby added to read as set forth in the quotations below:
"5.12.015 Pedicab
No person shall operate or engage in the business of operating a pedicab within the City. This section shall not apply to pedicabs authorized to operate in conjunction with a special event for which a special event permit has been issued pursuant to Chapter 11 M."
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Section 205: Section 5.12.020 (Certificate Required) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby amended to read as set forth in the quotations below:
"5.12.020 Certificate Required.

No person shall solicit or pick up passengers in the City or engage in the business of operating any vehicle for hire within the City, without having first obtained a separate certificate of public convenience and necessity for each such business. No such certificate issued by the City shall be required for any operations for which a certificate of public convenience and necessity is needed and has been granted by the Public Utilities Commission of the State."
Section 206: Section 5.12.025 (Pedicab Permit —Trial Period) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby deleted in its entirety.

Section 207: Subsection (G) of Section 5.12.030 (Application for Certificate) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby amended to read as set forth in the quotations below:
"G. The experience of the applicant in the business or businesses for which the person is seeking a certificate or certificates."
Section 208: Section 5.12.040 (Investigation) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby amended to read as set forth in the quotations below:
"5.12.040 Investigation.

Upon receipt of a completed application for a certificate, the City Manager shall, upon determining the application to be in order, refer the matter to the Chief of Police for investigation. In the course of the investigation, the Chief of Police shall inspect the vehicles and equipment. The Chief of Police shall complete the investigation within thirty (30) days, unless prevented from doing so by lack of cooperation of the applicant or other person named in the application, and shall report his findings to the City Manager regarding the qualifications of the applicant and other persons named in the application and the adequacy and safety of the vehicles with respect to cleanliness, equipment, safety devices, brakes and light."
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Section 209: Section 5.12.060 (Grounds for Denial of Application) of Chapter

5.12 (Vehicles for Hire) of Title 5 of the Code is hereby amended to read as set forth in the quotations below:
"5.12.060 Grounds for Denial of Application.

If the City Manager finds any of the following conditions exist, the City Manager shall deny the application:

A. That the application is not in the form and does not contain the information required to be contained therein by this chapter.

B. That the equipment, safety devices or vehicles proposed to be used are inadequate or unsafe for the purposes for which they are to be used.

C, That the color scheme, name, monogram or insignia to be used upon such vehicles or in the business resembles the color scheme, name, monogram or insignia used by another person, firm or corporation in the same business in the City and therefore may tend to deceive or defraud the public.

D. That the applicant has within the past two (2) years had an application for such a certificate denied for cause.

E. That there is a sufficient number of vehicles of the type described in the application operating in the City to fully serve the public, that the granting of more certificates would unduly congest the traffic and interfere with the free use of public rights -of -way by the public, or that the best interests of the public do not demand and necessity does not require the issuance of such permit."
Section 210:Section 5.12.070 (Insurance) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby amended to read as set forth in the quotations below:
"5.12.070 Insurance.

Every person subject to this chapter shall procure and maintain insurance, which types and amounts shall be determined by the Risk Manager."
Section 211: Section 5.12.080 (Revocation, Denial and Appeal) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby amended to read as set forth in the quotations below;
"Section 5.12.080 Revocation, Denial and Appeal
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A. Grounds for Revocation. Any certificate granted under the provisions of this chapter may be revoked by the City Manager for any of the following reasons:

1. That the insurance required by Section 5.12.070 has not been filed or has been withdrawn or lapsed or is not in force for any reason.

2. For the nonpayment of any City business license.

3. For the breach of any rules, regulations or conditions set out in this Code or the certificate.

4. For the violation of any of the laws of the State or the City with respect to the operation of the business by any certificate holder, or repeated violations by operators or drivers of any vehicle covered by such certificate.

5. For failure to maintain satisfactory service to the public, or for failure to keep any such vehicle in a safe and sanitary condition and good repair, or for failure to use the distinctive coloring, monogram or insignia described in the application, or for deviation from the schedule or rates and fares set forth in the application.

B. Notice. When the City Manager concludes that the grounds for revocation of a certificate exists, the City Manager shall serve the certificate holder, in the manner provided in Section 1,08.080, with a notice of revocation of the certificate. The notice shall state the reasons for the revocation, the effective date of revocation if no appeal is filed by the certificate holder, and the right of the certificate holder to appeal to the City Council the decision to revoke the certificate.

C. Appeal and Call for Review. If a certificate holder is aggrieved by any action of the City Manager in revoking any certificate, such certificate holder may appeal to the City Council by filing with the City Clerk a statement addressed to the City Council setting forth the facts and circumstances regarding the action of the City Manager. A member of the City Council, in their official capacity, may call for review any action of the City Manager under this chapter for the purpose of bringing the matter in front of the entire body for review. A call for review shall be filed with the City Clerk on a form provided by the City Clerk. The City Clerk shall notify the applicant in writing of the time and place set for the hearing of the appeal or a call for review.

The right to appeal to the City Council or file a call for review from the revocation shall terminate upon the expiration of fifteen (15) days of service of the notice of revocation of the certificate as provided in subsection (B).

The City Council may preside over the revocation hearing or, in the alternative, appoint a hearing officer to conduct the hearing, receive relevant evidence and to submit to the City Council findings and recommendations to be considered by the City Council. The 6-120

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City Council shall preside over call for review hearings. The City Council shall render its decision within forty-five (45) days from the date of the hearing or, in the event that a hearing officer has been appointed, within forty-five (45) days on which the City Council receives the findings and recommendations of the hearing officer. The decision of the City Council shall be final as to the City but subject to judicial review pursuant to Cal.

Code of Civ. Proc. Section 1094.5."
Section 212: Section 5.12.090 (Changes of Operation) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby deleted in its entirety.

Section 213: Section 5.12.100 (Rates or Charges) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby deleted in its entirety.

Section 214: Section 5.12.110 (Annual Vehicle Fee) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby deleted in its entirety.

Section 215: Section 5.12.120 (Refusal to Pay Fare) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby deleted in its entirety.

Section 216: Section 5.12.130 (Cruising Prohibited) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby deleted in its entirety.

Section 217: Section 5.12.170 (Registered Fare —Request for Receipt) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby deleted in its entirety.

Section 218: Section 5.12.180 (Standing Vehicle on Public Rights -of -way) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby deleted in its entirety.

Section 219: Section 5.12.190 (Right of Exclusive Vehicle Use by Passenger) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby deleted in its entirety.

Section 220: Section 5.12.210 (Advance Vehicle License for Fee Payment Required) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby deleted in its entirety.

Section 221: Section 5.12.220 (Solicitation of Passengers) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby deleted in its entirety.

Section 222: Section 5.12.230 (Driver's Permit) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby deleted in its entirety. 6-121

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Section 223: Section 5.12.240 (Permit and Certificate Nontransferable) of Chapter 5.12 (Vehicles for Hire) of Title 5 of the Code is hereby deleted in its entirety.

Section 224: The Table of Contents for Chapter 5.14 (Ambulance Regulations) of Title 5 of the Code is hereby renumbered and amended to read as follows:

Chapter 5.14

AMBULANCE REGULATIONS
Sections:

5.14.010 Definitions.

5.14.020 Emergency Ambulance Transportation Services.

5.14.030 Nonemergency Ambulance Transportation Services.

Section 225: Section 5.14.010 (Intent and Purpose) of Chapter 5.14 (Ambulance Regulations) of Title 5 of the Code is hereby deleted in its entirety and replaced with

5.14.010 (Definitions), to read as follows:

5.14.010 Definitions.
"Advanced life support" as defined in the Cal. Health & Saf. Code Section 1797.52 means special services designed to provide definitive prehospitai emergency medical care, including, but not limited to, cardiopulmonary resuscitation, cardiac monitoring, cardiac defibrillation, advanced airway management, intravenous therapy, administration of specified drugs and other medical preparations, and other specified techniques and procedures administered by authorized personnel under the direct supervision of a base hospital as part of a local EMS system at the scene of an emergency, during transport to an acute care hospital, during interfacility transfer, and while in the emergency department of an acute care hospital until responsibility is assumed by the emergency or other medical staff of that hospital. "Basic life support" as defined in the Cal. Health & Saf. Code Section 1797.60 means emergency first aid and cardiopulmonary resuscitation procedures that, at a minimum, include recognizing respiratory and cardiac arrest and starting the proper application of cardiopulmonary resuscitation to maintain life without invasive techniques until the victim may be transported or until advanced life support is available. "Ambulance" means any motor vehicle that is specifically designed, constructed, modified, equipped, or arranged and operated for the purpose of transporting patients requiring basic or advanced life support medical services. 6-122

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"Agreement" means the agreement between the City and an ambulance service operator to provide emergency ambulance transportation services as provided in this chapter.
"Emergency ambulance transportation service" means transportation by an ambulance of one or more patients in response to an emergency or from the scene of an emergency and giving rise to the need for basic or advanced life support services. This transportation may require "code 3" response (red lights and siren). All ambulance transportation services within the City that are requested in response to a 911 call, by the City's Fire Department or other public agency, or from the Metro Cities Fire Authority Communications Center shall be deemed "an emergency ambulance transport service." "Nonemergency ambulance transportation service" means transportation by ambulance of a patient who is medically stable but may need basic life support and requires transportation from one location to another. This transportation does not normally require "code 3" response. Nonemergency ambulance transportation service shall not include any response to an emergency, any response that may require advanced life support, transportation from the scene of an emergency, or any emergency ambulance transportation service. The term nonemergency ambulance transportation service shall be construed narrowly.

Section 226: Section 5.14.020 (Definitions), of Chapter 5.14 (Ambulance Regulations) of Title 5 of the Code is hereby deleted in its entirety and replaced with

5.14.020 (Emergency Ambulance Transportation Services), to read as set forth in the quotations below:
"5.14.020. Emergency Ambulance Transportation Services.

A. It is unlawful for any person or ambulance service operator to provide emergency ambulance transportation service or respond to an emergency within the City, or to act in such a capacity either directly or indirectly, without: (1) entering into an agreement with the City; and (2) procuring and maintaining a license issued pursuant to the ordinances, rules, and regulations of the County and any other licenses or permits as may be required.

B. Any person or ambulance service operator receiving a request for emergency ambulance transportation service within the City, from someone other than a public safety agency, shall immediately, by telephone, notify the City's Fire Department's communication center.

C. Subsection (A) of this chapter shall not apply to:
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1. Emergency ambulance response and transportation services operated by the City's Fire Department;

2. Ambulances operated at the request of a public safety agency during any "state of war emergency," "state of emergency," or "local emergency" as defined in Cal. Gov.

Code Section 8558;

3. Ambulance service transporting a patient from a location outside of the City limits regardless of destination;

4. In the event of a mass casualty situation, as determined by the Fire Chief or Police Chief;

5. Emergency ambulance response and transportation services expressly requested by the City's Fire Department;

6. An ambulance service operator who has a contractual agreement with a hospital or medical facility, within the City, to transport patients to/from the hospital or medical facility to/from another hospital or medical facility; or

7. Nonemergency ambulance transportation services provided in compliance with Section 5.14.030."
Section 227: Section 5.14.030 (License Required), of Chapter 5.14 (Ambulance Regulations) of Title 5 of the Code is hereby deleted in its entirety and replaced with

5.14.030 (Nonemergency Ambulance Transportation Services), to read as set forth in the quotations below:
"5.14,030 Nonemergency Ambulance Transportation Services.

A. It is unlawful for any person or ambulance service operator to provide nonemergency ambulance transportation service or respond to a nonemergency within the City, or to act in such a capacity either directly or indirectly, without acquiring and maintaining a license issued pursuant to the ordinances, rules, and regulations of the County of Orange and any other licenses or permits as may be required.

B. No ambulance service operator shall provide nonemergency ambulance transportation service on the streets of the City without first obtaining a City business license and providing the Fire Chief with evidence of County approval and licensing for the personnel, equipment, and operation of nonemergency ambulance transportation service in Orange County.

C. The City Council shall by resolution establish a schedule of rates applicable to all nonemergency ambulance transportation service and may, upon its own motion or upon application of any person holding a business license for the operation of nonemergency 6-124

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transportation service, modify or amend such a schedule. Prior to establishing, modifying, or amending any schedule or rates of nonemergency ambulance transportation service, the City Council shall hold a public hearing after giving ten (10) days' prior written notice to all providers and/or applicants, and said proposed rate changes in the official newspaper of the City at least once, not less than ten (10) days prior to the date of said hearing."
Section 228: Section 5.14.040 (Emergency Ambulance Transportation Service Providers) of Chapter 5.14 (Ambulance Regulations) of Title 5 of the Code is hereby deleted in its entirety.

Section 229: Section 5.14.050 (Emergency Ambulance Transportation Service Agreement Specifications) of Chapter 5.14 (Ambulance Regulations) of Title 5 of the Code is hereby deleted in its entirety.

Section 230: Section 5.14.060 (Agreements) of Chapter 5.14 (Ambulance Regulations) of Title 5 of the Code is hereby deleted in its entirety.

Section 231: Section 5.14.070 (Termination or Suspension of Agreement) of Chapter 5.14 (Ambulance Regulations) of Title 5 of the Code is hereby deleted in its entirety.

Section 232: Section 5.14.080 (Business License Required) of Chapter 5.14 (Ambulance Regulations) of Title 5 of the Code is hereby deleted in its entirety.

Section 233: Section 5.14.090 (Advanced Life Support Ambulance Transportation Service Providers) of Chapter 5.14 (Ambulance Regulations) of Title 5 of the Code is hereby deleted in its entirety.

Section 234: Section 5.14.100 (Nonemergency Ambulance Transportation Service Providers) of Chapter 5.14 (Ambulance Regulations) of Title 5 of the Code is hereby deleted in its entirety.

Section 235: Section 5.14.110 (Permit for Drivers and Attendants) of Chapter

5.14 (Ambulance Regulations) of Title 5 of the Code is hereby deleted in its entirety.

Section 236: Section 5.14.120 (File Report with Police) of Chapter 5.14 (Ambulance Regulations) of Title 5 of the Code is hereby deleted in its entirety. 6-125

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Section 237: Section 5.14.130 (Public Liability Insurance) of Chapter 5.14 (Ambulance Regulations) of Title 5 of the Code is hereby deleted in its entirety.

Section 238:Section 5,14.140 (Violations) of Chapter 5.14 (Ambulance Regulations) of Title 5 of the Code is hereby deleted in its entirety.

Section 239: Section 5.15.020 (Definitions) of Chapter 5.15 (Regulation of Newport Beach Police Official Tow Services) of Title 5 of the Code is hereby amended to remove the following definitions:
"Finance Director" means the position appointed by the City Manager and has charge of the administration of the financial affairs of the City. "Revenue Division" means the Newport Beach City Revenue Division of the Finance Department.

Section 240: Section 5.15.080 (Service Agreements) of Chapter 5.15 (Regulation of Newport Beach Police Official Tow Services) of Title 5 of the Code is hereby amended to read as set forth in the quotations below:
"5.15.080 Service Agreements.

Tow truck operators selected by the City Council to provide official police tow services shall enter into an agreement with the City that shall contain eligibility requirements, operating regulations, and a fee schedule as adopted by the City Council. Every official police tow service operator shall post in a conspicuous place in the interior of each tow truck an approved rate schedule in a form and location approved by the Chief of Police.

The rate schedule will automatically be adjusted on its anniversary date based on the percentage change in the cost of doing business as measured by the change in the Consumer Price Index for the preceding twelve (12) months.

The City may require and revise the fee schedule by mutual agreement at any time upon a finding that a rate adjustment is justified.

The term of all official police tow truck service agreements shall be five (5) years with an option to extend the term for one additional five (5) year period. Any official police tow truck operator whose service agreement with the City will expire or has expired may bid on subsequent notices inviting bids for official police tow truck services." Section 241: Subsections (E), (K), (P) and (R) of Section 5.15.110 (Standard Rules of Operation) of Chapter 5.15 (Regulation of Newport Beach Police Official Tow Services) of Title 5 of the Code are hereby amended to read as set forth below:
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