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 Page 1 of 5 DocuSign Envelope ID: A210790E-F69B-44FD-Al8E-D37843C1BOC2 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. Resolution 20-21 Page 2 of 5 DocuSign Envelope ID: A210790E-F69B-44FD-Al8E-D37843C1BOC2 "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. Resolution 20-21 Page 3of5 DocuSign Envelope ID: A210790E-F69B-44FD-Al8E-D37843C1BOC2 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 Resolution 20-21 Page 4 of 5 DocuSign Envelope ID: A210790E-F69B-44FD-Al8E-D37843C1BOC2 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 Page 5of5