HomeMy WebLinkAboutCC RES 20-21DocuSign Envelope ID: A210790E-F69B-44FD-Al8E-D37843C1BOC2
RESOLUTION NO. 20-21
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA, ENCOURAGING ALL NON-RESIDENTIAL LANDLORDS AND
UTILITIES TO ABIDE BY THE GOVERNOR'S MARCH 16, 2020 EXECUTIVE
ORDER N-28-20, AND ENCOURAGING NON-RESIDENTIAL LANDLORDS TO
OFFER RENT -DEFERRAL PROGRAMS TO TENANTS
WHEREAS, as of April 2, 2020, a novel coronavirus (COVID-19) had spread
globally, infecting more than 1,000,000 persons and killing more than 51,000 individuals
worldwide. As of April 3, 2020, thirteen (13) Tustin residents, 711 Orange County
residents, over 10,000 Californians, and over 238,000 Americans have been confirmed
COVID-positive.
WHEREAS, the World Health Organization, the President of the United States, the
Governor of the State of California, the County of Orange, and the City of Tustin have all
declared states of emergency as a result of COVID-19; and
WHEREAS, despite sustained efforts, the virus remains a threat, and further efforts
to control the spread of the virus to reduce and minimize the risk of infection and otherwise
mitigate the effects of COVID-19 are needed; and
WHEREAS, the City has determined, based on its particular needs, that promoting
stability amongst commercial tenancies is conducive to public health, such as by allowing
commercial establishments to decide whether and how to close based on public health
concerns and to mitigate the spread and impacts of COVID-19 rather than economic
pressures; and
WHEREAS The Irvine Company, one of Tustin's largest commercial landowners
and landlords, has voluntarily offered their business tenants an optional rent deferral
program for a period of ninety (90) days effective April 1, 2020, with deferred rent to be
repaid over a 12 -month period commencing January 1, 2021;
WHEREAS many utility providers, public and private, covering electricity, gas,
water, and sewer, have voluntarily announced moratoriums on service disconnections
and late fees for non-payment in response to COVID-19; and
WHEREAS many telecommunication companies, including internet and cell phone
providers, have voluntarily announced moratoriums on service disconnections and late
fees for non-payment in response to COVID-19; and
WHEREAS, on March 16, 2020, for many of the reasons listed above, the
Governor issued Executive Order N-28-20 that authorized local governments, including
the City of Tustin, to create limitations on residential and commercial evictions; and
Resolution 20-21
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WHEREAS, on March 27, 2020, the Governor issued Executive Order N-37-20
placing procedural limitations on certain residential evictions when a residential tenant is
unable to pay rent due to reasons related to COVID-19. The eviction limitations in
Executive Order N-37-20 do not apply to non-residential tenants such as businesses;
WHEREAS, the stated purpose of the Governor's Executive Order N-28-20 is to
minimize the impact on California tenants during this time of crisis, and therefore made
the certain "Orders," such as:
'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 as described in subparagraphs (i) and (ii)
below — including, but not limited to, any such provision of Civil Code sections
1940 et seq. or 1954.25 et seq. — is hereby suspended to the extent that it
would preempt or otherwise restrict such exercise. This paragraph 2 shall only
apply to the imposition of limitations on evictions when.-
i.
hen.
i. The basis for the eviction is nonpayment of rent, or a foreclosure, arising
out of a substantial decrease in household or business income
(including, but not limited to, a substantial decrease in household income
caused by layoffs or a reduction in the number of compensable hours of
work, or a substantial decrease in business income caused by a
reduction in opening hours or consumer demand), or substantial out-of-
pocket medical expenses, and
ii. The decrease in household or business income or the out-of-pocket
medical expenses described in subparagraph (i) was caused by the
COVID-19 pandemic, or by any local, state, or federal government
response to COVID-19, and is documented.
"Financial institutions holding home or commercial mortgages, including banks,
credit unions, government-sponsored enterprises, and institutional investors,
are requested to implement an immediate moratorium on foreclosures and
related evictions when the foreclosure or foreclosure -related eviction arises out
of a substantial decrease in household or business income, or substantial out-
of-pocket medical expenses, which were caused by the COVID-19 pandemic,
or by any local, state, or federal government response to COVID-19.
"The California Public Utilities Commission is requested to monitor measures
undertaken by public and private utility providers to implement customer
service protections for critical utilities, including, but not limited to, electric, gas,
water, internet, landline telephone, and cell phone service, in response to
COVID-19, and on a weekly basis publicly report these measures.
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"The statutory cause of action for judicial foreclosure, 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 is suspended only as
applied to any tenancy, or residential real property and any occupation thereof,
to which a local government has imposed a limitation on eviction pursuant to
this paragraph 2, and only to the extent of the limitation imposed by the local
government.
"Nothing in this Order shall relieve a tenant of the obligation to pay rent, nor
restrict a landlord's ability to recover rent due.
"The protections in this paragraph shall be in effect through May 31, 2020,
unless extended."
WHEREAS, Executive Order N-28-20 explicitly states, "Nothing in this Order shall
in any way restrict state or local authority to order any quarantine, isolation, or other public
health measure that may compel an individual to remain physically present in a particular
residential real property";
WHEREAS, the City seeks to uphold the provisions of the Executive Order N-28-
20, and to honor its intent and spirit as applied to all commercial landlords in the City of
Tustin, for the protection of its businesses during this time of crisis, which has been, and
will always be, the City's utmost priority;
NOW, THEREFORE, the City Council of the City of Tustin DOES HEREBY
RESOLVE as follows:
SECTION 1. To strongly encourage all commercial landlords and all utility
providers in the City of Tustin to abide by the provisions of the Governor's Executive Order
N-28-20, and to specifically refrain from evictions, foreclosures, rent increases, or service
or utility disconnections due to commercial tenants' significant reduction in business
income related to the COVID-19 pandemic, for the duration of the COVID-19 emergency;
and
SECTION 2. To strongly encourage commercial landlords to extend to their
commercial tenants optional rent deferral programs for tenants experiencing a significant
reduction in business income related to the COVID-19 pandemic; and
SECTION 3. The City has, at this time, refrained from exercising the full regulatory
authority established by Executive Order N-28-20 based its long history working together
with its business community, and based upon the statements and representations of key
members of that community indicating an intent to abide by the spirit and intent of
Executive Order N-28-20.
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SECTION 4. This Resolution shall go into effect immediately upon its adoption.
The City Clerk shall certify to the adoption of this Resolution and shall deliver a copy of
this Resolution to the Director of the California Governor's Office of Emergency Services
and the Orange County Health Office, and any other federal, state, or regional agency as
may be directed by the City Manager.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Tustin held on the 7th day of April, 2020.
ATTEST:
ERICA N. YASUDA,
City Clerk
Dr. ALLAN BERNSTEIN,
Mayor
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
I, Erica N. Yasuda, City Clerk and ex -officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council is
five; that the above and foregoing Resolution No. 20-21 was duly and regularly passed
and adopted at a special meeting of the City Council held on the 7th day of April, 2020 by
the following vote:
COUNCILMEMBER AYES: Bernstein, Clark, Puckett, Cooper, Lumbard (5)
COUNCILMEMBER NOES: (0)
COUNCILMEMBER ABSTAINED: (0)
COUNCILMEMBER ABSENT: (0)
`L t& q0's4a
ERICA N. YASUDA,
City Clerk
Resolution 20-21
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