Item Coversheet
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report 

May  5, 2020
ORDERS OF BUSINESS

TO:

Honorable Mayor and City Council Members 
SUBMITTED BY:

Chip Rerig, City Administrator
APPROVED BY: 

Chip Rerig, City Administrator
SUBJECT:

Ordinance temporarily prohibiting evictions of tenants arising from income loss or substantial medical expenses related to the Coronavirus pandemic.    

 
RECOMMENDATION:

1. Request a reading of the title of the Ordinance

 

2. Motion to waive further reading and introduce Ordinance 2020-002, temporarily prohibiting evictions of tenants arising from income loss or substantial medical expenses related to the Coronavirus pandemic.  

BACKGROUND/SUMMARY:

In December 2019 and January 2020, reports began spreading worldwide of a flu-like virus first found in China, that was more deadly than the flu generally, with the virus becoming known as the Coronavirus (“COVID-19”).

 

On or about March 4, 2020, as part of the State of California’s response to address the global COVID-19 outbreak, 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 broader spread of COVID-19.

 

On March 6, 2020, the County Administrative Officer of Monterey County (“County CAO”) proclaimed a Local Emergency due to the threat of COVID-19 in the County.

 

On March 11, 2020, the World Health Organization (“WHO”) classified the spread of COVID-19 internationally as a global pandemic.

 

On March 12, 2020, based on these events, the City Administrator of the City of Carmel-by-the-Sea, acting in his capacity as the Director of Emergency Services for the City, declared the existence of a local emergency within the City.

 

On March 13, 2020, the City Council adopted Resolution No. 2020-021 ratifying the City Administrator’s Proclamation of the Existence of a Local Emergency Due to the Worldwide Spread of the Coronavirus (“COVID-19”). 

 

On March 16, 2020, the Governor issued Executive Order N-28-20, which waived any provisions 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, including but not limited to Civil Code Sections 1940 et seq. or 1954.25 et seq., until May 31, 2020, unless extended.

 

On March 17, 2020, the County of Monterey Health Officer issued a “Shelter in Place” Order requiring, among other things, that people self-isolate in their places of residence.   

On March 19, 2020, Governor Gavin Newsom issued a shelter in place order for the entire State of California.

On March 23, 2020, City Administrator Chip Rerig, acting in his capacity as the Director of Emergency Services for the City, issued Order No. 20-1 Staying Evictions in the City of Carmel-by-the-Sea.

On March 25, 2020, the California Department of Business Oversight secured support from national banks, state banks and credit unions for temporary delays in mortgage payments and foreclosure sales and evictions for homeowners who have economic impacts from COVID-19 with the objective of maximizing consistency and minimizing hurdles potentially faced by borrowers.

On March 27, 2020, Governor Newsom issued Executive Order N-37-20, which suspended the deadline specified in Code of Civil Procedure section 1167 for 60 days, by which a complaint for eviction must usually be served on a tenant within 5 days, in cases during the COVID-19 pandemic where a tenant is unable to pay rent.

On March 30, 2020, the City Council adopted Resolution No. 2020-022 Ratifying Director of Emergency Services Order No. 20-1.  

 

On April 3, 2020, the County of Monterey Health Officer issued a further “Shelter in Place” Order to supersede the prior Orders of the Health Officer. 

 

In order to comply with the shelter in place orders, and for their own safety, City residents must have access to permanent housing.

 

The COVID-19 pandemic and associated public health and shelter in place orders are expected to result in the closure of most local businesses for the foreseeable future, and result in extreme restrictions on other local businesses, resulting in commercial tenants suffering a significant decrease in income.

Without local protection, eviction notices for failure to pay rent are likely to surge as residents and businesses are unable to earn income due to the pandemic, or are forced to pay substantial medical expenses associated with the pandemic.

Particularly given the high cost of housing, evictions of tenants could lead to long term or permanent displacement of tenants impacting the health and safety of these tenants as well as the City.

During the COVID-19 pandemic, eviction notices and threats of eviction may surge.   

For these reasons,  it is appropriate to temporarily prohibit evictions until the authorization to suspend evictions under Executive Order N-28-20 and Executive Order N-37-20 terminates or the City Council declares an end to the local emergency, whichever occurs first, for any tenant who can demonstrate that they are being evicted for the failure to pay rent and that such failure is a direct impact of the COVID-19 pandemic, as provided in Governor Newsom’s Executive Order N-28-20, issued March 16, 2020, and Executive Order N-37-20, issued March 27, 2020.

FISCAL IMPACT:
None for this action. 
PRIOR CITY COUNCIL ACTION:

On March 13, 2020, the City Council adopted Resolution 2020-021 ratifying the City Administrator’s Proclamation of the Existence of a Local Emergency Due to the Worldwide Spread of the Coronavirus (“COVID-19”). 

 

On March 30, 2020, the City Council adopted a Resolution ratifying Order No. 20-1 Staying Evictions. 

ATTACHMENTS:
ATTACHMENTS:
Description
Attachment #1 - Ordinance 2020-002