August 25, 2026
Agenda Item No. 6
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Jaime Murillo, Community Development Director - 949-644-3209, [email protected] PREPARED BY:
David Lee, Principal Planner - 949-644-3225, [email protected] TITLE:
Resolution No. 2026-61: Initiating Newport Beach Municipal Code and Local Coastal Program Amendments Related to Community Development Director Authority to Exclude Utility and Mechanical Equipment Rooms from Floor Area Ratio Calculations (PA2026-0159) ABSTRACT:
For the City Council’s consideration is the initiation of amendments to the Newport Beach Municipal Code (NBMC) and Local Coastal Program to authorize the Community Development Director to exclude up to 10% of utility and mechanical equipment rooms from floor area ratio calculations.
Should the City Council initiate the proposed amendment by adopting the attached resolution, the changes will be considered by both the Planning Commission and the City Council at future public hearings.
RECOMMENDATIONS:
a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15262 (Feasibility and Planning Studies) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3; and; b) Adopt Resolution No. 2026-61, A Resolution of the City Council of the City of Newport Beach, California, Initiating Amendments to Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) of the City of Newport Beach Municipal Code to Authorize the Community Development Director to Exclude Utility and Mechanical Equipment Rooms from Floor Area Ratio Calculations (PA2026-0159).
DISCUSSION:
The NBMC regulates development intensity of commercial, mixed-use, and certain residential developments through a floor area ratio (FAR). Generally, FAR limitations are intended to regulate mass, scale and traffic generation on an individual property. Currently, most areas of a building are included in the calculation of FAR, with limited exceptions. For example, any interior portion of a structure that is accessible and that measures more than 4 feet from floor to ceiling is considered gross floor area for the purpose of calculating FAR.
In contrast, prior to the comprehensive update of the Zoning Code (Title 20) of the NBMC in 2010, the Zoning Code included a provision allowing the Planning Director to “exclude utility and mechanical equipment rooms, totaling up to 10% of the gross floor area, from the calculation of the floor area ratio when it is clearly demonstrated that such areas do not contribute to the traffic generation potential of the property” (Attachment B).
This provision was not included as part of the City of Newport Beach’s (City) comprehensive Zoning Code update adopted in 2010, and subsequently not included in the 2016 adoption of Title 21 (Local Coastal Program Implementation Plan). This omission has reduced staff discretion pertaining to gross floor area and floor area ratio calculations and property owners must rely on narrow code definitions of gross floor area to qualify for exemptions.
Proposed Initiation
Modern construction requires a substantial amount of building infrastructure to accommodate the increasingly sophisticated electrical, HVAC and telecommunications equipment, among other systems (e.g. server rooms). This equipment is typically housed in utility and mechanical rooms that do not meet the narrow exemption from the current Zoning Code definition of gross floor area. However, these areas also do not generate occupancy, increased demand for parking, or contribute to traffic generation.
Pacific Life Insurance Company, located at 700 Newport Center Drive, is planning for a future expansion of its office building and has formally requested amendments to Title 20 of the NBMC to reinstate the prior Zoning Code provision (Attachment C). Title 21 is also included in the initiation to provide consistency in the regulation of FAR throughout the city. The amendments would reinstate the community development director’s authority to exclude qualifying utility and mechanical equipment rooms, totaling up to 10% of the gross floor area, from FAR calculations where it is clearly demonstrated that the rooms do not contribute to traffic generation potential of the property. Notably, the potential amendments would still require a discretionary review by the director to determine if the requirements of the provision can be met.
If initiated, the amendments would be considered by the Planning Commission and the City Council. The Title 21 amendment would also require approval from the California Coastal Commission prior to final adoption by the City Council.
FISCAL IMPACT:
There is no fiscal impact related to this item.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15262 (Feasibility and Planning Studies) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment.
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).
ATTACHMENTS:
Attachment A – Resolution Initiating Amendments to Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) Attachment B – Previous Zoning Code Section 20.63.040 (Land Use Intensities) Attachment C – Pacific Life Initiation Request Letter
Resolution No. 2026-61: Initiating Newport Beach Municipal Code and Local Coastal Program Amendments Related to Community Development Director Authority to Exclude Utility and Mechanical Equipment Rooms from Floor Area Ratio Calculations (PA2026-0159) August 25, 2026
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