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HomeMy WebLinkAbout2020-06-03 e-packet@5:00Wednesday, June 3, 2020 5:00 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA TELECONFERENCE MEETING Special City Council Special Meeting Agenda June 3, 2020Special City Council Special Meeting Agenda TELECONFERENCE MEETING NOTICE THIS MEETING WILL BE CONDUCTED PURSUANT TO THE PROVISIONS OF THE GOVERNOR’S EXECUTIVE ORDERS N-25-20 AND N-29-20 ALLOWING FOR DEVIATION OF TELECONFERENCE RULES REQUIRED BY THE BROWN ACT & PURSUANT TO THE ORDER OF THE HEALTH OFFICER OF SAN MATEO COUNTY DATED MARCH 31, 2020 AS THIS MEETING IS NECESSARY SO THAT THE CITY CAN CONDUCT NECESSARY BUSINESS AND IS PERMITTED UNDER THE ORDER AS AN ESSENTIAL GOVERNMENTAL FUNCTION. The purpose of conducting the meeting as described in this notice is to provide the safest environment for staff and the public while allowing for public participation. Councilmembers Matsumoto, Nagales and Nicolas, Vice Mayor Addiego and Mayor Garbarino and essential City staff will participate via Teleconference. Members of the public may submit their comments on any agenda item or public comment via email or City Council hotline. PURSUANT TO RALPH M. BROWN ACT, GOVERNMENT CODE SECTION 54953, ALL VOTES SHALL BE BY ROLL CALL DUE TO COUNCIL MEMBERS PARTICIPATING BY TELECONFERENCE. MEMBERS OF THE PUBLIC MAY VIEW A VIDEO BROADCAST OF THE MEETING BY: Internet: https://www.ssf.net/government/city-council/video-streaming-city-and-council-meetings/city-council Local cable channel: Astound, Channel 26 or Comcast, Channel 27 Page 2 City of South San Francisco Printed on 11/16/2020 June 3, 2020Special City Council Special Meeting Agenda Call to Order. Roll Call. Agenda Review. Remote Public Comments - comments are limited to items on the Special Meeting Agenda. Members of the public wishing to participate are encouraged to submit public comments in writing in advance of the meeting by 4:00 p.m. on Wednesday, June 3rd. Public comments must identify the Agenda Item Number in the SUBJECT Line of the email. The comments will be read into the record, with a maximum allowance of 3 minutes per individual comment, subject to the Mayor's discretion. All comments should be a maximum of 500 words, which corresponds to approximately 3 minutes of speaking time. If a comment is received after the agenda item is heard but before the close of the meeting, the comment will still be included as a part of the record of the meeting and read into the record. Comments that are not in compliance with the City Council's rules of decorum may be summarized for the record rather than read verbatim. The email and phone line below will be monitored during the meeting. Your entire electronic comment will become part of the record and will be available for public inspection. Email: [email protected] Members of the public wishing to participate are encouraged to submit public comments in writing in advance of the meeting by 4:00 p.m. on Wednesday, June 3rd. Public comments must identify the Agenda Item Number in the SUBJECT Line of the email. The comments will be read into the record, with a maximum allowance of 3 minutes per individual comment, subject to the Mayor's discretion. If a comment is received after the agenda item is heard but before the close of the meeting, the comment will still be included as a part of the record of the meeting and read into the record. City Council Hotline: (650) 829-4670 Voice Messages will be monitored during the meeting and read into the record. We ask that you limit your voicemail to comply with the 3 minute time limitation for public comment. Page 3 City of South San Francisco Printed on 11/16/2020 June 3, 2020Special City Council Special Meeting Agenda LEGISLATIVE BUSINESS Report regarding an urgency ordinance of the City of South San Francisco further enacting a temporary moratorium on small business and nonprofit entity evictions due to nonpayment of rent where the failure to pay rent results from income loss resulting from the Novel Coronavirus (COVID-19) (Sky Woodruff, City Attorney) 1. Urgency ordinance of the City of South San Francisco further enacting a temporary moratorium on small business and nonprofit entity evictions due to nonpayment of rent where the failure to pay rent results from income loss resulting from the Novel Coronavirus (COVID-19) 1a. Adjournment. Page 4 City of South San Francisco Printed on 11/16/2020 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-389 Agenda Date:6/3/2020 Version:1 Item #:1. Report regarding an urgency ordinance of the City of South San Francisco further enacting a temporary moratorium on small business and nonprofit entity evictions due to nonpayment of rent where the failure to pay rent results from income loss resulting from the Novel Coronavirus (COVID-19) (Sky Woodruff, City Attorney) RECOMMENDATION It is recommended City Council waive reading,introduce by title,and adopt an urgency ordinance of the City of South San Francisco further enacting a temporary moratorium on small business and nonprofit entity evictions due to nonpayment of rent where the failure to pay rent results from income loss resulting from the Novel Coronavirus (COVID-19).Approval of an urgency ordinance requires a four- fifths vote. BACKGROUND In March 2020, Governor Gavin Newsom issued Executive Order N-28-20 that suspended all state law provisions that would prevent local governments from limiting residential or commercial evictions related to the Novel Coronavirus (COVID-19), and suspended state law provisions providing for foreclosure, unlawful detainer, and those that would allow landlords to evict or otherwise eject a residential or commercial tenant or occupant of residential real property after foreclosure. Subsequently, the County of San Mateo (“County”) adopted an Emergency Regulation establishing a temporary, countywide moratorium on evictions for non- payment of rent by residential tenants directly impacted by the COVID-19 pandemic. Similarly, the San Mateo Superior Court also suspended the entry of default in any pending unlawful detainer action during the period of May 14, 2020 through June 12, 2020. On April 8, 2020, the City Council adopted Urgency Ordinance No. 1598-2020 enacting a temporary eviction moratorium on small businesses and nonprofit entities due to nonpayment of rent, where the failure to pay rent results from income loss resulting from COVID-19. The Urgency Ordinance and its accompanying staff report dated April 8, 2020 are attached for ease of reference to this staff report. Most recently on May 29, 2020, the Governor extended the aforementioned suspensions and protections afforded by Order N-28-20 to remain in effect until July 28, 2020. The County also extended its Emergency Regulation on May 26, 2020, which extended the existing residential eviction moratorium to June 30, 2020. DISCUSSION The temporary eviction moratorium enacted by Urgency Ordinance No.1598-2020 was set to expire,and has expired,on May 31,2020.At this time,the economic impact resulting from COVID-19 and various state and local Shelter-In-Place orders continues to affect all commercial sectors of the City simultaneously.Both non-essential businesses,which have seen the most dramatic impact causing all operations to cease,and essential businesses continue to be dramatically affected.For instance,the City’s hotel industry,conference and meeting spaces,and business-to-business sales that support large gatherings continue to be adversely impacted. Therefore,it is essential to continue the protections against small business and nonprofit entity evictions that were put in place under Urgency Ordinance No.1598-2020.The consequences of such evictions will jeopardize public health,safety and welfare and worsen the ongoing severe economic impacts of COVID-19 to the City’sCity of South San Francisco Printed on 6/2/2020Page 1 of 2 powered by Legistar™ File #:20-389 Agenda Date:6/3/2020 Version:1 Item #:1. public health,safety and welfare and worsen the ongoing severe economic impacts of COVID-19 to the City’s commercial sector. For these reasons,it is recommended that City Council adopt an urgency ordinance to further enact the same temporary moratorium on evictions for nonpayment of rent by small business and nonprofit entities impacted by COVID-19.This proposed Urgency Ordinance will provide the same protections to small businesses and nonprofits impacted by COVID-19 as the April 8,2020 Urgency Ordinance No.1598-2020.For example,if small businesses or nonprofit entities are able to demonstrate their inability to pay rent due to COVID-19 circumstances,they would be protected against evictions by reasons of failure to pay rent.Similarly,this proposed urgency ordinance would still require the small business or nonprofit entity repay any back due rent no later than six (6)months following the expiration of the ordinance.Additionally,the small business or nonprofit entity could still use this proposed ordinance as an affirmative defense in an unlawful detainer action. This proposed urgency ordinance,upon its adoption,would expire on June 30,2020 with the County of San Mateo’s Emergency Regulation imposing a residential eviction moratorium.If the County further extend that Emergency Regulation beyond June 30,2020,this urgency ordinance would be automatically extended to that same future date.The Council also has the ability to further extend or shorten the expiration of this proposed urgency ordinance and its temporary moratorium. FISCAL IMPACT As presented at the April 8,2020 Council meeting,approval of the staff recommendations will have no direct fiscal impact on the City's General Fund. ENVIRONMENTAL REVIEW This Urgency Ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq.,“CEQA,”and 14 Cal.Code Reg.§§15000 et seq.,“CEQA Guidelines”)under Section 15061(b) (3) of the CEQA Guidelines. CONCLUSION It is recommended City Council waive reading,introduce by title,and adopt an urgency ordinance of the City of South San Francisco further enacting a temporary moratorium on small business and nonprofit entity evictions due to nonpayment of rent where the failure to pay rent results from income loss resulting from the Novel Coronavirus (COVID-19).Approval of an urgency ordinance requires a four-fifths vote. Attachments: 1.Ordinance No. 1598-2020 (4/8/2020) 2. April 8, 2020 City Council Staff Report City of South San Francisco Printed on 6/2/2020Page 2 of 2 powered by Legistar™ Cit y of South San Francisco rk P.O. Box 711 (City Hall, 400 Grand Avenue) Cn South San Francisco, CA City CouncilLL Ordinance: ORD 1598-2020 File Number: 20-251 Enactment Number: ORD 1598-2020 URGENCY ORDINANCE OF THE CITY OF SOUTH SAN FRANCISCO ENACTING A TEMPORARY MORATORIUM ON SMALL BUSINESS AND NONPROFIT ENTITY EVICTIONS DUE TO NONPAYMENT OF RENT WHERE THE FAILURE TO PAY RENT RESULTS FROM INCOME LOSS RESULTING FROM THE NOVEL CORONAVIRUS (COVID- 19) WHEREAS, international, national, state, and local health and governmental authorities are responding to an outbreak of respiratory disease caused by a novel coronavirus named "SARS-CoV 2," and the disease it causes has been named "coronavirus disease 2019," abbreviated COVID-19, ("COVID-19"); and WHEREAS, on January 30, 2020, the World Health Organization ("WHO") declared COVID-19 a Public Health Emergency of International Concern, and on January 31, 2020, the United States Secretary of Health and Human Services declared a Public Health Emergency; and WHEREAS, on March 2, 2020, the County of San Mateo activated its Emergency Operations Center EOC) to support the local County Health response to COVID-19; and WHEREAS, on March 3, 2020, the County of San Mateo Director of Emergency Services issued a proclamation Declaring the Existence of a Local Emergency in the County and the County of San Mateo Health Officer issued a Declaration of Local Health Emergency Regarding Novel Coronavirus 2019 COVID-19); and WHEREAS, on March 4, 2020, California Governor Gavin Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for a broader spread of COVID-19. The proclamation comes as the number of positive California cases rises and following one official COVID-19 death; and WHEREAS, on March 10, 2020, the Board of Supervisors of the County of San Mateo adopted a resolution Ratifying and Extending the Declaration of a Local Health Emergency; and WHEREAS, on March 11, 2020, the San Mateo County Health Officer issued a legal order barring unauthorized visitors and non-essential personnel from licensed skilled nursing facilities in the County; and WHEREAS, on March 12, 2020, San Mateo County Health Officer issued an order prohibiting mass gatherings of 250 or more persons and as defined in the order, applicable to public and private gatherings and includes exceptions for houses of worship, museums, malls, hospital and medical facilities, and the normal operations of hotels and airports; and City of South San Francisco Page 1 File Number: 20-251 Enactment Number. ORD 1598-2020 WHEREAS, on March 121, 2020, due to an escalating increase in the number of cases in San Mateo County, under South San Francisco Municipal Code Chapter 2.72, the City Council of the City of South San Francisco adopted a resolution proclaiming a local State of Emergency related to the Novel Coronavirus 2019 (COVID- 19); and WHEREAS, on March 13, 2020, the President of the United States of America declared a national emergency and announced that the federal government would make emergency funding available to assist state and local governments in preventing the spread of and addressing the effects of COVID-19; and WHEREAS, on March 13, 2020, San Mateo County Health Officer issued a School Operations Modification Order requiring all schools to dismiss students from regular attendance; and WHEREAS, on March 14, 2020, San Mateo County Health Officer issued an update regarding the legal order prohibiting mass gatherings, further limiting public or private gatherings of more than 50 persons as defined in the order; and WHEREAS, on March 16, 2020, seven health officers within six Bay Area counties, including San Mateo County, took a unified step to slow the spread of novel coronavirus (COVID- 19) and preserve critical health care capacity across the region by issuing a legal order directing their respective residents to shelter at home for three weeks beginning March 17, 2020. The order limits activity, travel and business functions to only the most essential needs. The guidance comes after substantial input from the U. S. Centers for Disease Control and Prevention (CDC) and best practices from other health officials around the world; and WHEREAS, on March 16, 2020, California Governor Gavin Newsom issued Executive Order N-28-20 ordering waiver of time limitations set forth in Penal Code section 396(f) concerning protections against residential evictions, and suspending any provision of state law that would preempt or otherwise restrict a local government's exercise of its police power to impose substantive limitations on residential or commercial evictions related to COVID-19. The order further suspended statutory causes of action for judicial foreclosure, including Code of Civil Procedure section 725a et seq.; the statutory cause of action for unlawful detainer, Code of Civil Procedure section 1161 et seq. ; and any other statutory cause of action that could be used to evict or otherwise eject a residential or commercial tenant or occupant of residential real property after foreclosure; and WHEREAS, both large and smaller events across the Bay Area and in South San Francisco are cancelling or being postponed due to the County's and State's Orders and recommendations at all levels of government to cancel large gatherings amid concerns over spread of the virus. These cancellations and postponements cause loss in revenue for the event, as well as surrounding local businesses that rely on such events to bring in patrons to their businesses; and WHEREAS, as a result of the public health emergency, the precautions recommended by state and county health officers, and in compliance with orders issued by those officers, many residents and businesses in South San Francisco have experienced or expect soon to experience sudden and unexpected income loss; and City of South San Francisco Page 2 File Number. 20-251 Enactment Number: ORD 1598-2020 WHEREAS, the California Constitution, Article XI, Section 7, provides cities and counties with the authority to enact ordinances to protect the health, safety, and general welfare, of their citizens; and WHEREAS, California Government Code Section 36937 authorizes the City Council to introduce and adopt an ordinance it declares to be necessary as an emergency measure to preserve the public peace, health, and safety at one and the same meeting if passed by at least four-fifths affirmative votes; and WHEREAS, this Ordinance is a temporary moratorium intended to promote stability and fairness within the rental market in the City during the COVID-19 pandemic outbreak, and to prevent avoidable evictions thereby serving the public peace, health, safety, and public welfare; and WHEREAS, further economic impacts are anticipated as a result of COVID-19-related workplace closures, childcare expenditures due to school closures, health care expenses, labor shortages, and other expenditures stemming from compliance with emergency orders, leaving small business tenants vulnerable to evictions; and WHEREAS, for the purposes of this Ordinance, a "small business" is defined as a business entity with gross receipts of less than $25 million per year. For the purposes of this Ordinance, a "nonprofit" is an organization that is registered as a California public benefit nonprofit corporation or has received federal tax exemption under Internal Revenue Code section 501(c)(3). WHEREAS, these economic impacts may inhibit small businesses from fulfilling their financial obligations, including rent and public utility payments such as water, sewer, and solid waste collection charges; and WHEREAS, displacement of small businesses and nonprofits through eviction further destabilizes the local economy by causing non-essential businesses to cease operating and forcing the termination of employees who would otherwise be able to work, deepening the negative feedback loop of financial consequences of the COVD-19 pandemic; and WHEREAS, on March 24, 2020, the County of San Mateo adopted an Emergency Regulation establishing a temporary, countywide moratorium on evictions for non-payment of rent by residential tenants directly impacted by the COVID-19 pandemic; and WHEREAS, on March 27, 2020, California Governor Gavin Newsom issued Executive Order N-37-20, extending the deadline specified in Civil Code of Procedure section 1167 for a period of 60 days for any residential tenant who is served, while the Order is in effect, with an eviction notice for nonpayment of rent where the tenant paid rent due prior to date of the Order and the tenant notifies the landlord in writing of an inability to pay the full amount due to reasons related to COVID-19; and WHEREAS, small businesses and nonprofits in South San Francisco are greatly affected by COVID-19 economic impacts and thus vulnerable to threat of eviction, which negatively impacts the local economy by laying off employees and ceasing to provide essential services to residents of the City; negatively impacting local health by forcing persons out of their shelter -in-place locations to prepare for business City of South San Francisco Page 3 File Number. 20-251 Enactment Number. ORD 1598-2020 eviction, increasing potential COVID-19 exposure; and reducing the number of retail and commercial spaces available to provide essential services, also increasing potential COVID-19 exposure as a result of less retail and commercial spaces available for residents and thus less space available for social distancing; and WHEREAS, the City Council finds and determines that regulating the relations between landlords and tenants is essential to preventing the spread of COVID-19 in the City and thereby serve the public peace, health, and safety; and WHEREAS, an urgency ordinance that is effective immediately is necessary to avoid the immediate threat to public peace, health, and safety as failure to adopt this urgency ordinance would result in the avoidable displacement or exposure to COVID-19 of the City's small businesses and to the amplification of the factors that lead to the spread of the virus, as described in these Recitals. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Findings The City Council of the City of South San Francisco finds that all Recitals are true and correct and incorporated herein by reference. The provisions of the Governor's issued Executive Order N-28-20 and Executive Order N-37-20, including all recitals, are incorporated herein as if fully set forth. SECTION 2. Urgency Findings. The City Council of the City of South San Francisco hereby finds that there is a current and immediate threat to the public health, safety and/or welfare and a need for immediate preservation of the public peace, health, or safety that warrants this urgency measure, which finding is based upon the facts stated in the Recitals above, and in the staff report dated April 8, 2020, as well any oral and written testimony at the April 8, 2020 City Council meeting. This Ordinance and any moratorium that may be established thereunder is declared by the City Council to be an urgency measure necessary for the immediate preservation of the public peace, health or safety. The facts constituting such urgency are all of those certain facts set forth and referenced in this Ordinance and the entirety of the record before the City Council. SECTION 3. Moratorium on Eviction of Small Businesses and Nonprofits for Nonpavment of Rent during the COVID-19 Emergency. A temporary moratorium on eviction for non-payment of rent by small business and nonprofit entity tenants impacted by the COVID-19 crisis is imposed as follows: a) During the term of this Ordinance, no landlord shall endeavor to evict a small business or nonprofit entity tenant in either of the following situations: (1) for nonpayment of rent if the tenant demonstrates that the tenant is unable to pay rent due to financial impacts related to COVID-19 or (2) for a no-fault eviction unless necessary for the health and safety of tenants, neighbors, or the landlord. City of South San Francisco Page 4 File Number: 20-251 Enactment Number: ORD 1598-2020 b) Endeavors to evict that are prohibited by this Ordinance include issuance of a three-day notice to pay rent or quit or a notice of no-fault termination of tenancy after the effective date of this Ordinance, or attempting to enforce a termination of tenancy through an unlawful detainer filing based on any notice issued but not yet expired prior to the effective date of this Ordinance. c) Prior to taking any action, during the term of this Ordinance, to endeavor to evict a tenant for non-payment of rent or under any circumstance that constitutes a no-fault termination of tenancy, the landlord must first provide the affected tenant or tenants with: 1) written notice of this Ordinance; (2) the amount of rent to which the landlord is legally entitled pursuant to any written or oral agreement and under the provisions of State or local law; (3) that this rent is due unless the tenant promptly establishes in writing to the Landlord that the amount of rent due qualifies as a Delayed Payment, as defined in this Ordinance; and (4) that the notice from the tenant to the landlord referenced in Section (d) regarding Delayed Payment must be provided to the landlord as soon as reasonably practicable thereafter. d) For purposes of this Ordinance, notice provided by a tenant to the landlord within fourteen (14) days from the date rent is due or from the date of receipt of the landlord's written notice required pursuant to subsection (c), whichever is later, shall be presumed to have been provided within a reasonable timeframe, provided that notices provided on a timeframe greater than fourteen (14) days may be deemed reasonable, depending on the totality of the circumstances. e) Nothing in this Ordinance shall relieve the tenant of the obligation to pay rent as it comes due after this Ordinance expires, or of the obligation for the unpaid rent that is a Delayed Payment, payment of which the landlord may seek after this Ordinance expires. However, with respect to any Delayed Payment covered by this Ordinance, a tenant shall have up to one hundred and eighty (180) days after this Ordinance expires to tender the full amount of the Delayed Payment, before the tenant shall be deemed to be in default of rent payment obligations. The tenant shall tender the full amount of the Delayed Payment in three months (90 days) if able to do so; however, if the tenant remains unable to tender the full amount of the Delayed Payment for the reasons set forth in Section (g), the tenant may provide the landlord another written notice and additional documentation to support that claim and thereby extend the payment date an additional month (30 days). The tenant may provide additional written notices and documentation each month (every 30 days) to further extend the deadline, but under no circumstances shall the landlord be required to extend the deadline beyond one hundred and eighty 180) days after this Ordinance expires. Further, a landlord may not charge or collect a late fee for a Delayed Payment as defined in this Ordinance. Any three-day notices to pay or quit or no-fault termination of tenancy notices served prior the effective date of this Ordinance but not yet expired are automatically deemed served the day following the expiration of this Ordinance. f) An action taken by a landlord to evict a tenant for a Delayed Payment shall not be considered a violation of this Ordinance where the action was taken before the tenant provided the landlord notice of the tenant's lost income and inability to pay full rent on the due date and provided documentation to the landlord in accordance with this Ordinance, provided that the landlord ceases further endeavors to evict the tenant on this basis upon receiving the notice and documentation from the tenant required in this Ordinance. g) (1) For purposes of this Ordinance, "Delayed Payment" includes a payment made after the time set City of South San Francisco Page 5 File Number. 20-251 Enactment Number. ORD 1598-2020 forth in the rental agreement between a landlord and a tenant or tenants or as otherwise agreed between the parties as a result of "financial impacts related to COVID-19" including, but are not limited to, loss of income due to any of the following: (1) being sick with COVID-19, or caring for a household or family member who is sick with COVID-19; (2) lay-off, loss of hours, reduction in staff reporting to work, reduction in opening hours, reduction in consumer demand, or other income reduction resulting from business closure or other economic or employer impacts of COVID-19; (3) compliance with a recommendation or order from a government health authority to close non-essential business, stay home, self -quarantine, or avoid congregating with others during the state of emergency; (4) extraordinary out-of-pocket medical expenses; or (5) child care needs arising from school closures related to COVID-19. 2) To qualify as a "Delayed Payment" under this Ordinance, a tenant must notify the landlord in writing within the time frame set forth in Section (d) above of the tenant's lost income and inability to pay full rent on the due date and provide documentation to support the claim within that same time frame. For purposes of this section, "in writing" may include e-mail or text communications to a landlord or the landlord's representative with whom the tenant has previously corresponded by email or text. Any medical or financial information provided to the landlord shall be held in confidence, and only used for evaluating the tenant's claim. 3) Courts shall have the sole discretion to determine in an unlawful detainer action or other eviction action whether the tenant's written notice and documentation are sufficient to show a qualifying Delayed Payment. h) For purposes of this Ordinance, "no-fault eviction" refers to any eviction for which the notice to terminate tenancy is not based on alleged fault by the tenant, including but not limited to eviction notices served pursuant to Code of Civil Procedure sections 1161 (1) or 1161(5). i) For the purposes of this Ordinance, a "small business" is a business entity with gross receipts of less than $25 million per year. For the purposes of this Ordinance, a "nonprofit" is an organization that is registered as a California public benefit nonprofit corporation or has received federal tax exemption under Internal Revenue Code section 501(c)(3). 0) This Ordinance provides an affirmative defense to eviction in the event that an unlawful detainer action is commenced in violation of this Ordinance. In addition, a knowing violation of this Ordinance shall be a misdemeanor and in the event of a knowing violation of this Ordinance, an aggrieved tenant may institute a civil proceeding for injunctive relief, money damages of not less than three times actual damages (including damages for mental or emotional distress as specified below), and any other relief the Court deems appropriate. The prevailing party in such civil proceeding(s) shall be entitled to reasonable attorney's fees and costs pursuant to court order. The remedies available under this section shall be in addition to any existing remedies which may be available to the tenant under local, state or federal law. k) The limitations on evictions imposed pursuant to this Ordinance shall apply to the statutory cause of action for judicial foreclosure and any other statutory cause of action that could be used to evict or otherwise eject a small business or nonprofit entity after foreclosure, consistent with and as suspended by Executive Order N-28-20. City of South San Francisco Page 6 File Number. 20-251 Enactment Number. ORD 1598-2020 SECTION 4. Severabilitv. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of this Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. SECTION 5. Effective Date and Term. This Urgency Ordinance shall become effectively immediate upon its adoption pursuant to California Government Code Section 36937 and shall remain in effect until May 31, 2020, unless further extended by the City Council before that date. SECTION 6. Compliance with the California Environmental Ouality Act. The City Council hereby finds approval of this Ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., "CEQA," and 14 Cal. Code Reg. §§ 15000 et seq., CEQA Guidelines") under Section 15061(b)(3) of the CEQA Guidelines. SECTION 7. Publication. Pursuant to the provisions of Government Code Section 36933, a summary of this Ordinance shall be prepared by the City Attorney. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk's Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting. At a meeting of the City Council on 4/8/2020, a motion was made by Vice Mayor Addiego, seconded by Councilmember Nicolas, that this Ordinance be adopted. The motion passed. Yes: 5 Mayor Garbarino, Vice Mayor Addiego, Councilmember Nagales, Councilmember Nicolas, and Councilmember Matsumoto Attest by AL Aosa Govea Acosta, City Clerk I Fmr. rev., Mw City of South San Francisco Page 7 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA Report regarding an urgency ordinance of the City of South San Francisco enacting a temporary moratorium on small business and nonprofit entity evictions due to nonpayment of rent where the failure to pay rent results from income loss resulting from the Novel Coronavirus (COVID-19) (Sky Woodruff, City Attorney) RECOMMENDATION It is recommended City Council waive reading,introduce by title,and adopt an urgency ordinance of the City of South San Francisco enacting a temporary moratorium on small business and nonprofit entity evictions due to nonpayment of rent where the failure to pay rent results from income loss resulting from the Novel Coronavirus (COVID-19).Approval of an urgency ordinance requires a four-fifths vote. BACKGROUND International,national,state,and local health and governmental authorities are responding to an outbreak of respiratory disease caused by a novel coronavirus named “SARS-CoV-2,”and the disease it causes has been named “coronavirus disease 2019,”abbreviated COVID-19,(“COVID-19”).On January 30,2020,the World Health Organization (“WHO”)declared COVID-19 a Public Health Emergency of International Concern,and on January 31,2020,the United States Secretary of Health and Human Services declared a Public Health Emergency. On March 2,2020,the County of San Mateo activated its Emergency Operations Center (EOC)to support the local County Health response to COVID-19.On March 3,2020,the County of San Mateo Director of Emergency Services issued a proclamation Declaring the Existence of a Local Emergency in the County and the County of San Mateo Health Officer issued a Declaration of Local Health Emergency Regarding COVID- 19.On March 4,2020,California Governor Gavin Newsom declared a State of Emergency to make additional resources available,formalize emergency actions already underway across multiple state agencies and departments, and help the state prepare for a broader spread of COVID-19. On March 10,2020,the Board of Supervisors of the County of San Mateo adopted a resolution Ratifying and Extending the Declaration of a Local Health Emergency.On March 12,2020,due to an escalating increase in the number of cases in San Mateo County,the City Council of the City of South San Francisco adopted a resolution proclaiming a local State of Emergency related to the Novel Coronavirus 2019 (COVID-19)under South San Francisco Municipal Code Chapter 2.72. On March 16,2020,seven health officers within six Bay Area counties,including San Mateo County,took a unified step to slow the spread of novel coronavirus (COVID-19)and preserve critical health care capacity across the region by issuing a legal order directing their respective residents to shelter at home for three weeks beginning March 17,2020.The order limits activity,travel and business functions to only the most essential needs.The guidance comes after substantial input from the U.S.Centers for Disease Control and Prevention (CDC) and best practices from other health officials around the world. On March 16,2020,California Governor Gavin Newsom issued Executive Order N-28-20 ordering suspension of any provision of state law that would preempt or otherwise restrict a local government’s exercise of its police power to impose substantive limitations on residential or commercial evictions related to COVID-19.The File #:20-250,Version:1 City of South San Francisco Printed on 6/2/2020Page 1 of 4 powered by Legistar™ File #:20-250,Version:1 power to impose substantive limitations on residential or commercial evictions related to COVID-19.The order further suspended statutory causes of action for judicial foreclosure,including Code of Civil Procedure section 725a et seq.;the statutory cause of action for unlawful detainer,Code of Civil Procedure section 1161 et seq.;and any other statutory cause of action that could be used to evict or otherwise eject a residential or commercial tenant or occupant of residential real property after foreclosure. On March 24,2020,the County of San Mateo adopted an Emergency Regulation establishing a temporary, countywide moratorium on evictions for non-payment of rent by residential tenants directly impacted by the COVID-19 pandemic.On March 27,2020,California Governor Gavin Newsom issued Executive Order N-37- 20,extending the deadline specified in Civil Code of Procedure section 1167 for a period of 60 days for any residential tenant who is served,while the Order is in effect,with an eviction notice for nonpayment of rent where the tenant paid rent due prior to date of the Order and the tenant notifies the landlord in writing of an inability to pay the full amount due to reasons related to COVID-19.These actions only protect tenants from residential evictions,whereas the proposed Urgency Ordinance will further address small business and nonprofit entity evictions. DISCUSSION The Shelter-In-Place orders have had an immediate economic impact in all commercial sectors of the City simultaneously.Although non-essential businesses have seen the most dramatic impact causing all operations to cease,many essential businesses that remain open have also been dramatically affected.Restaurants and food establishments,for example,are considered essential and many remain open.However,operations have had to be significantly modified by limited sales to only take-out and delivery orders.This,coupled with the drop in public demand of dining out has many restaurants anticipating large revenue losses in the months of March and April, and at least until the health orders expire. In addition,both large and smaller events across the Bay Area and in South San Francisco have all been cancelled or postponed due to the County and State’s Orders.These cancellations and postponements cause loss in revenue for the event,as well as surrounding local businesses that rely on such events to bring in patrons to their businesses.This has adversely affected the City’s hotel industry,conference and meeting spaces,and business-to-business sales that support large gatherings. Economic Impact Macro-Level Economic Forecast.Revising a forecast published March 12,UCLA Anderson Forecast economists say the U.S.economy has entered a recession,ending the expansion that began in July 2009.As the U.S.economy moved into a recession this month,it looks like California will bear a heavy share of the contraction.In 1990 it was the aerospace industry,in 2001 the tech industry,and in 2008 residential construction;each of which were sectors that California was proportionately more exposed than the rest of the nation.Now it is the turn of three more sectors with heavy concentration in the Golden State;transportation and warehousing,agriculture,and leisure and hospitality.The exposure to transportation and warehousing stems from the fact that the ports of California carry much of the goods coming in from Asia,and they are not coming in.California is a major tourist destination,particularly from Asia,and air travel has been limited across the Pacific.And agriculture,hard hit by the trade wars,now finds that there are no ships nor appropriate containers to move the latest harvest out to market.These,overlaid on a U.S.forecast of a two quarter recession,results in four quarters of job loss and three quarters of real income losses in the State. Employment is expected to contract by -0.7%in 2020 with the 2nd and 3rd quarters contracting at an annual rate of 2.6%.The unemployment rate will rise to 6.3%by the end of this year and expected to continue to increase into 2021 with an average for 2021 of 6.6%.By the first quarter of 2021 of the year California isCity of South San Francisco Printed on 6/2/2020Page 2 of 4 powered by Legistar™ File #:20-250,Version:1 increase into 2021 with an average for 2021 of 6.6%.By the first quarter of 2021 of the year California is expected to lose over 280K payroll jobs with over 1/3 of those in leisure and hospitality and transportation and warehousing. The expectation is for 2021 to be a slow recovery year and 2022 a year of growth once again. Local Market Impact.The occupations of South San Francisco residents include a high share of service and production jobs,which in many ways are relatively compatible with the types of jobs found in the city.These jobs will be the most exposed during the recession.Attachment 1 includes current data for retail,industrial,and office demographics for the South San Francisco submarket. The City has created a business resources website,dedicated for COVID-19 information and programs.A business survey has been issued to create a baseline of how the economic disruption is affecting the local economy.If a commercial eviction moratorium is enacted,the City has the ability to collect data on its impact over the duration of the moratorium. Proposed Urgency Ordinance For these reasons,it is recommended that City Council adopt an uncodified urgency ordinance enacting a temporary moratorium on evictions for nonpayment of rent by small business and nonprofit entities impacted by COVID-19.The proposed urgency ordinance includes provisions to prevent evictions if the small business or nonprofit entity is able to show an inability to pay rent due to circumstances related to COVID-19.Such circumstances include: ·Being sick with COVID-19, or caring for a household or family member who is sick with COVID-19; ·Compliance with a recommendation or order from a government health authority to close non-essential business; ·Income reduction resulting from business closure or other economic or employer impacts; ·Extraordinary out-of-pocket medical expenses; or ·Child care needs arising from school closures. If adopted,the ordinance would require the small business or nonprofit entity repay any back due rent no later than six (6)months following the expiration of the ordinance.Additionally,the small business or nonprofit entity could use the ordinance as an affirmative defense in an unlawful detainer action.The ordinance,if adopted, would remain in effect until May 31, 2020 unless extended by City Council. FISCAL IMPACT Approval of the staff recommendations will have no direct fiscal impact on the City's General Fund. ENVIRONMENTAL REVIEW This Urgency Ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq.,“CEQA,”and 14 Cal.Code Reg.§§15000 et seq.,“CEQA Guidelines”)under Section 15061(b) (3) of the CEQA Guidelines. CONCLUSION It is recommended City Council waive reading,introduce by title,and adopt an urgency ordinance of the City of South San Francisco enacting a temporary moratorium on small business and nonprofit entity evictions due to nonpayment of rent where the failure to pay rent results from income loss resulting from the Novel Coronavirus (COVID-19).Approval of an urgency ordinance requires a four-fifths vote. Attachments: City of South San Francisco Printed on 6/2/2020Page 3 of 4 powered by Legistar™ File #:20-250,Version:1 1.South San Francisco Vacancy and Rental Rates by Product Type City of South San Francisco Printed on 6/2/2020Page 4 of 4 powered by Legistar™ South San Francisco Vacancy and Rental Rates by Product Type Retail Sector Type Total Square feet Vacancy Rate Market Rent/SF Neighborhood Center 484,041 0.7% $29.03 Strip Center 191,678 0.5% $28.45 General Retail 2,066,813 1.6% $29.63 Total 2,742,532 1.3% $29.44 Industrial Type Total Square feet Vacancy Rate Market Rent/SF Logistics 11,850,102 7.0% $15.56 Specialized Industrial 3,783,043 2.3% $15.49 Flex 5,697,081 7.7% $33.57 Total 21,330,226 6.4% $21.50 Office Type Total Square feet Vacancy Rate Market Rent/SF 4 & 5 Star 5,226,939 5.6% $58.84 3 Star 1,280,675 4.4% $53.86 1 & 2 Star 614,285 2.6% $38.48 Total 7,121,899 5.1% $56.33 ATTACHMENT 1 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:20-390 Agenda Date:6/3/2020 Version:1 Item #:1a. Urgency ordinance of the City of South San Francisco further enacting a temporary moratorium on small business and nonprofit entity evictions due to nonpayment of rent where the failure to pay rent results from income loss resulting from the Novel Coronavirus (COVID-19) WHEREAS,international,national,state,and local health and governmental authorities are responding to an outbreak of respiratory disease caused by a novel coronavirus named “SARS-CoV-2,”and the disease it causes has been named “coronavirus disease 2019,” abbreviated COVID-19, (“COVID-19”); and WHEREAS,on January 30,2020,the World Health Organization (“WHO”)declared COVID-19 a Public Health Emergency of International Concern,and on January 31,2020,the United States Secretary of Health and Human Services declared a Public Health Emergency; and WHEREAS,on March 2,2020,the County of San Mateo activated its Emergency Operations Center (EOC)to support the local County Health response to COVID-19; and WHEREAS,on March 3,2020,the County of San Mateo Director of Emergency Services issued a proclamation Declaring the Existence of a Local Emergency in the County and the County of San Mateo Health Officer issued a Declaration of Local Health Emergency Regarding Novel Coronavirus 2019 (COVID-19); and WHEREAS,on March 4,2020,California Governor Gavin Newsom declared a State of Emergency to make additional resources available,formalize emergency actions already underway across multiple state agencies and departments,and help the state prepare for a broader spread of COVID-19.The proclamation comes as the number of positive California cases rises and following one official COVID-19 death; and WHEREAS,on March 10,2020,the Board of Supervisors of the County of San Mateo adopted a resolution Ratifying and Extending the Declaration of a Local Health Emergency; and WHEREAS,on March 11,2020,the San Mateo County Health Officer issued a legal order barring unauthorized visitors and non-essential personnel from licensed skilled nursing facilities in the County; and WHEREAS,on March 12,2020,San Mateo County Health Officer issued an order prohibiting mass gatherings of 250 or more persons and as defined in the order,applicable to public and private gatherings and includes exceptions for houses of worship,museums,malls,hospital and medical facilities,and the normal operations of hotels and airports; and WHEREAS,on March 12,2020,due to an escalating increase in the number of cases in San Mateo County, under South San Francisco Municipal Code Chapter 2.72,the City Council of the City of South San Francisco adopted a resolution proclaiming a local State of Emergency related to the Novel Coronavirus 2019 (COVID- City of South San Francisco Printed on 6/22/2020Page 1 of 7 powered by Legistar™ File #:20-390 Agenda Date:6/3/2020 Version:1 Item #:1a. 19); and WHEREAS,on March 13,2020,the President of the United States of America declared a national emergency and announced that the federal government would make emergency funding available to assist state and local governments in preventing the spread of and addressing the effects of COVID-19; and WHEREAS,on March 13,2020,San Mateo County Health Officer issued a School Operations Modification Order requiring all schools to dismiss students from regular attendance; and WHEREAS,on March 14,2020,San Mateo County Health Officer issued an update regarding the legal order prohibiting mass gatherings,further limiting public or private gatherings of more than 50 persons as defined in the order; and WHEREAS,on March 16,2020,seven health officers within six Bay Area counties,including San Mateo County,took a unified step to slow the spread of novel coronavirus (COVID-19)and preserve critical health care capacity across the region by issuing a legal order directing their respective residents to shelter at home for three weeks beginning March 17,2020.The order limits activity,travel and business functions to only the most essential needs.The guidance comes after substantial input from the U.S.Centers for Disease Control and Prevention (CDC) and best practices from other health officials around the world; and WHEREAS,on March 16,2020,California Governor Gavin Newsom issued Executive Order N-28-20 ordering waiver of time limitations set forth in Penal Code section 396(f)concerning protections against residential evictions,and suspending any provision of state law that would preempt or otherwise restrict a local government’s exercise of its police power to impose substantive limitations on residential or commercial evictions related to COVID-19.The order further suspended statutory causes of action for judicial foreclosure, including Code of Civil Procedure section 725a et seq.;the statutory cause of action for unlawful detainer, Code of Civil Procedure section 1161 et seq.;and any other statutory cause of action that could be used to evict or otherwise eject a residential or commercial tenant or occupant of residential real property after foreclosure; and WHEREAS,both large and smaller events across the Bay Area and in South San Francisco are cancelling or being postponed due to the County’s and State’s Orders and recommendations at all levels of government to cancel large gatherings amid concerns over spread of the virus.These cancellations and postponements cause loss in revenue for the event,as well as surrounding local businesses that rely on such events to bring in patrons to their businesses; and WHEREAS,as a result of the public health emergency,the precautions recommended by state and county health officers,and in compliance with orders issued by those officers,many residents and businesses in South San Francisco have experienced or expect soon to experience sudden and unexpected income loss; and WHEREAS,the California Constitution,Article XI,Section 7,provides cities and counties with the authority to enact ordinances to protect the health, safety, and general welfare, of their citizens; and WHEREAS,California Government Code Section 36937 authorizes the City Council to introduce and adopt an ordinance it declares to be necessary as an emergency measure to preserve the public peace,health,and safety at one and the same meeting if passed by at least four-fifths affirmative votes; and WHEREAS,this Ordinance is a temporary moratorium intended to promote stability and fairness within the City of South San Francisco Printed on 6/22/2020Page 2 of 7 powered by Legistar™ File #:20-390 Agenda Date:6/3/2020 Version:1 Item #:1a. WHEREAS,this Ordinance is a temporary moratorium intended to promote stability and fairness within the rental market in the City during the COVID-19 pandemic outbreak,and to prevent avoidable evictions thereby serving the public peace, health, safety, and public welfare; and WHEREAS,further economic impacts are anticipated as a result of COVID-19-related workplace closures, childcare expenditures due to school closures,health care expenses,labor shortages,and other expenditures stemming from compliance with emergency orders, leaving small business tenants vulnerable to evictions; and WHEREAS,for the purposes of this Ordinance,a “small business”is defined as a business entity with gross receipts of less than $25 million per year.For the purposes of this Ordinance,a “nonprofit”is an organization that is registered as a California public benefit nonprofit corporation or has received federal tax exemption under Internal Revenue Code section 501(c)(3). WHEREAS,these economic impacts may inhibit small businesses from fulfilling their financial obligations, including rent and public utility payments such as water, sewer, and solid waste collection charges; and WHEREAS,displacement of small businesses and nonprofits through eviction further destabilizes the local economy by causing non-essential businesses to cease operating and forcing the termination of employees who would otherwise be able to work,deepening the negative feedback loop of financial consequences of the COVD-19 pandemic; and WHEREAS,on March 24,2020,the County of San Mateo adopted an Emergency Regulation establishing a temporary,countywide moratorium on evictions for non-payment of rent by residential tenants directly impacted by the COVID-19 pandemic; and WHEREAS,on March 27,2020,California Governor Gavin Newsom issued Executive Order N-37-20, extending the deadline specified in Civil Code of Procedure section 1167 for a period of 60 days for any residential tenant who is served,while the Order is in effect,with an eviction notice for nonpayment of rent where the tenant paid rent due prior to date of the Order and the tenant notifies the landlord in writing of an inability to pay the full amount due to reasons related to COVID-19; and WHEREAS,on May 18,2020,the Presiding Judge of San Mateo County Superior Court issued an emergency order related to unlawful detainer proceedings,which among other things,prohibits the entry of default in any pending unlawful detainer action during the period of May 14, 2020 through June 12, 2020; and WHEREAS,on May 26,2020,the County of San Mateo extended the temporary countywide eviction moratorium for non-payment of rent by residential tenants directly impacted by the COVID-19 pandemic through the adoption of Emergency Regulation No.2020-001,which will be in effect through June 30,2020; and WHEREAS,small businesses and nonprofits in South San Francisco are greatly affected by COVID-19 economic impacts and thus vulnerable to threat of eviction,which negatively impacts the local economy by laying off employees and ceasing to provide essential services to residents of the City;negatively impacting local health by forcing persons out of their shelter-in-place locations to prepare for business eviction,increasing potential COVID-19 exposure;and reducing the number of retail and commercial spaces available to provide essential services,also increasing potential COVID-19 exposure as a result of less retail and commercial spaces available for residents and thus less space available for social distancing; and City of South San Francisco Printed on 6/22/2020Page 3 of 7 powered by Legistar™ File #:20-390 Agenda Date:6/3/2020 Version:1 Item #:1a. WHEREAS,to address these negative economic impacts and provide relief to local businesses and nonprofits, the City Council enacted Urgency Ordinance No.1598-2020 on April 8,2020,to create a citywide temporary moratorium on small business and nonprofit entity evictions due to nonpayment of rent where the failure to pay rent results from income loss resulting from COVID-19,based on findings of current and immediate threat to the public health, safety and welfare and the need for immediate preservation; and WHEREAS,the temporary moratorium enacted pursuant to Ordinance No.1598-2020 was scheduled to expire on May 31, 2020; and WHEREAS,on May 29,2020,Governor Newsom issued Executive Order N-66-20 extending the timeframe for the protections set forth in Paragraphs 1 and 2 of Executive Order N-28-20 for an additional 60 days,until July 28,2020,which waives time limitations set forth in Penal Code section 396(f);suspends any provision of state law that would preempt or otherwise restrict a local government’s exercise of its police power to impose substantive limitations on residential or commercial evictions related to COVID-19;suspends statutory causes of action for judicial foreclosure,including Code of Civil Procedure section 725a et seq.;the statutory cause of action for unlawful detainer,Code of Civil Procedure section 1161 et seq.;and any other statutory cause of action that could be used to evict or otherwise eject a residential or commercial tenant or occupant of residential real property after foreclosure; and WHEREAS,the City Council continues to find and determine that there is an immediate need to preserve public health,safety and welfare given the negative economic impacts derived from the COVID-19 pandemic, and that regulating the relations between landlords and tenants is essential to preventing the spread of COVID- 19 in the City and thereby serve the public peace, health, and safety; and WHEREAS,since the expiration of the temporary moratorium pursuant to Ordinance No.1598-2020 on May 31,2020,the City Council desires to further enact an urgency ordinance and impose the same temporary eviction moratorium in response to the negative impacts experienced by local small businesses and nonprofits in South San Francisco in order to provide immediate preservation of public health, safety and welfare; and WHEREAS,an urgency ordinance that is effective immediately is necessary to avoid the continuing and immediate threat to public peace,health,and safety as failure to adopt this urgency ordinance would result in the avoidable displacement or exposure to COVID-19 of the City’s small businesses and to the amplification of the factors that lead to the spread of the virus, as described in these Recitals. NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO,DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1.Findings The City Council of the City of South San Francisco finds that all Recitals are true and correct and incorporated herein by reference.The staff report and attachments for Urgency Ordinance No.1598-2020,dated April 8, 2020,and provisions of the Governor’s issued Executive Order N-28-20,Executive Order N-37-20,and Executive Order N-66-20 including all recitals, are incorporated herein as if fully set forth. SECTION 2.Urgency Findings. The City Council of the City of South San Francisco hereby finds that there is a current and immediate threat to the public health,safety and/or welfare and a need for immediate preservation of the public peace,health,or safety that warrants this urgency measure,which finding is based upon the facts stated in the Recitals above, City of South San Francisco Printed on 6/22/2020Page 4 of 7 powered by Legistar™ File #:20-390 Agenda Date:6/3/2020 Version:1 Item #:1a. safety that warrants this urgency measure,which finding is based upon the facts stated in the Recitals above, the accompanying staff report,and in the staff report and attachments for Urgency Ordinance No.1598-2020 dated April 8,2020,as well as any oral and written testimony at the April 8,2020 City Council meeting and the June 3, 2020 Special City Council meeting. This Ordinance and any moratorium that may be established thereunder is declared by the City Council to be an urgency measure necessary for the immediate preservation of the public peace,health or safety.The facts constituting such urgency are all of those certain facts set forth and referenced in this Ordinance and the entirety of the record before the City Council. SECTION 3.Moratorium on Eviction of Small Businesses and Nonprofits for Nonpayment of Rent during the COVID-19 Emergency. A temporary moratorium on eviction for non-payment of rent by small business and nonprofit entity tenants impacted by the COVID-19 crisis is imposed as follows: (a)During the term of this Ordinance, no landlord shall endeavor to evict a small business or nonprofit entity tenant in either of the following situations: (1) for nonpayment of rent if the tenant demonstrates that the tenant is unable to pay rent due to financial impacts related to COVID-19 or (2) for a no-fault eviction unless necessary for the health and safety of tenants, neighbors, or the landlord. (b)Endeavors to evict that are prohibited by this Ordinance include issuance of a three-day notice to pay rent or quit or a notice of no-fault termination of tenancy after the effective date of this Ordinance, or attempting to enforce a termination of tenancy through an unlawful detainer filing based on any notice issued but not yet expired prior to the effective date of this Ordinance. (c)Prior to taking any action, during the term of this Ordinance, to endeavor to evict a tenant for non- payment of rent or under any circumstance that constitutes a no-fault termination of tenancy, the landlord must first provide the affected tenant or tenants with: 1) written notice of this Ordinance; (2) the amount of rent to which the landlord is legally entitled pursuant to any written or oral agreement and under the provisions of State or local law; (3) that this rent is due unless the tenant promptly establishes in writing to the Landlord that the amount of rent due qualifies as a Delayed Payment, as defined in this Ordinance; and (4) that the notice from the tenant to the landlord referenced in Section (d) regarding Delayed Payment must be provided to the landlord as soon as reasonably practicable thereafter. (d)For purposes of this Ordinance, notice provided by a tenant to the landlord within fourteen (14) days from the date rent is due or from the date of receipt of the landlord’s written notice required pursuant to subsection (c), whichever is later, shall be presumed to have been provided within a reasonable timeframe, provided that notices provided on a timeframe greater than fourteen (14) days may be deemed reasonable, depending on the totality of the circumstances. (e)Nothing in this Ordinance shall relieve the tenant of the obligation to pay rent as it comes due after this Ordinance expires, or of the obligation for the unpaid rent that is a Delayed Payment, payment of which the landlord may seek after this Ordinance expires. However, with respect to any Delayed Payment covered by this Ordinance, a tenant shall have up to one hundred and eighty (180) days after this Ordinance expires to tender the full amount of the Delayed Payment, before the tenant shall be deemed to be in default of rent payment obligations. The tenant shall tender the full amount of the Delayed Payment in three months (90 days) if able to City of South San Francisco Printed on 6/22/2020Page 5 of 7 powered by Legistar™ File #:20-390 Agenda Date:6/3/2020 Version:1 Item #:1a. do so; however, if the tenant remains unable to tender the full amount of the Delayed Payment for the reasons set forth in Section (g), the tenant may provide the landlord another written notice and additional documentation to support that claim and thereby extend the payment date an additional month (30 days). The tenant may provide additional written notices and documentation each month (every 30 days) to further extend the deadline, but under no circumstances shall the landlord be required to extend the deadline beyond one hundred and eighty (180) days after this Ordinance expires. Further, a landlord may not charge or collect a late fee for a Delayed Payment as defined in this Ordinance. Any three-day notices to pay or quit or no-fault termination of tenancy notices served prior the effective date of this Ordinance but not yet expired are automatically deemed served the day following the expiration of this Ordinance. (f)An action taken by a landlord to evict a tenant for a Delayed Payment shall not be considered a violation of this Ordinance where the action was taken before the tenant provided the landlord notice of the tenant’s lost income and inability to pay full rent on the due date and provided documentation to the landlord in accordance with this Ordinance, provided that the landlord ceases further endeavors to evict the tenant on this basis upon receiving the notice and documentation from the tenant required in this Ordinance. (g)(1) For purposes of this Ordinance, “Delayed Payment” includes a payment made after the time set forth in the rental agreement between a landlord and a tenant or tenants or as otherwise agreed between the parties as a result of “financial impacts related to COVID-19” including, but are not limited to, loss of income due to any of the following: (1) being sick with COVID-19, or caring for a household or family member who is sick with COVID-19; (2) lay-off, loss of hours, reduction in staff reporting to work, reduction in opening hours, reduction in consumer demand, or other income reduction resulting from business closure or other economic or employer impacts of COVID-19; (3) compliance with a recommendation or order from a government health authority to close non-essential business, stay home, self-quarantine, or avoid congregating with others during the state of emergency; (4) extraordinary out-of-pocket medical expenses; or (5) child care needs arising from school closures related to COVID-19. (2) To qualify as a “Delayed Payment” under this Ordinance, a tenant must notify the landlord in writing within the time frame set forth in Section (d) above of the tenant’s lost income and inability to pay full rent on the due date and provide documentation to support the claim within that same time frame. For purposes of this section, “in writing” may include e-mail or text communications to a landlord or the landlord’s representative with whom the tenant has previously corresponded by email or text. Any medical or financial information provided to the landlord shall be held in confidence, and only used for evaluating the tenant’s claim. (3) Courts shall have the sole discretion to determine in an unlawful detainer action or other eviction action whether the tenant’s written notice and documentation are sufficient to show a qualifying Delayed Payment. (h)For purposes of this Ordinance, “no-fault eviction” refers to any eviction for which the notice to terminate tenancy is not based on alleged fault by the tenant, including but not limited to eviction notices served pursuant to Code of Civil Procedure sections 1161(1) or 1161(5). (i)For the purposes of this Ordinance, a “small business” is a business entity with gross receipts of less than $25 million per year. For the purposes of this Ordinance, a “nonprofit” is an organization that is registered as a California public benefit nonprofit corporation or has received federal tax exemption under Internal Revenue Code section 501(c)(3). City of South San Francisco Printed on 6/22/2020Page 6 of 7 powered by Legistar™ File #:20-390 Agenda Date:6/3/2020 Version:1 Item #:1a. (j)This Ordinance provides an affirmative defense to eviction in the event that an unlawful detainer action is commenced in violation of this Ordinance. In addition, a knowing violation of this Ordinance shall be a misdemeanor and in the event of a knowing violation of this Ordinance, an aggrieved tenant may institute a civil proceeding for injunctive relief, money damages of not less than three times actual damages (including damages for mental or emotional distress as specified below), and any other relief the Court deems appropriate. The prevailing party in such civil proceeding(s) shall be entitled to reasonable attorney’s fees and costs pursuant to court order. The remedies available under this section shall be in addition to any existing remedies which may be available to the tenant under local, state or federal law. (k)The limitations on evictions imposed pursuant to this Ordinance shall apply to the statutory cause of action for judicial foreclosure and any other statutory cause of action that could be used to evict or otherwise eject a small business or nonprofit entity after foreclosure, consistent with and as suspended by Executive Order N-28-20 and Executive Order N-66-20. SECTION 4.Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of this Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. SECTION 5.Effective Date and Term. This Urgency Ordinance shall become effectively immediate upon its adoption pursuant to California Government Code Section 36937 and extends the effect of Ordinance No. 1598-2020 as of June 1, 2020. This Urgency Ordinance shall expire on June 30, 2020 with the County of San Mateo’s Emergency Regulation No. 2020-001; however, if the County of San Mateo extends Emergency Regulation No. 2020-001 prior to June 30, 2020 to a future date, the term of this Urgency Ordinance shall be automatically extended to that same future date, unless otherwise further extended or terminated early by the City Council. SECTION 6.Compliance with the California Environmental Quality Act. The City Council hereby finds approval of this Ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§21000 et seq.,“CEQA,”and 14 Cal.Code Reg.§§15000 et seq.,“CEQA Guidelines”) under Section 15061(b)(3) of the CEQA Guidelines. SECTION 7.Publication. Pursuant to the provisions of Government Code Section 36933,a summary of this Ordinance shall be prepared by the City Attorney.Within fifteen (15)days after the adoption of this Ordinance,the City Clerk shall (1) publish the summary,and (2)post in the City Clerk’s Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting. ***** City of South San Francisco Printed on 6/22/2020Page 7 of 7 powered by Legistar™