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Home My WebLink About01a. Minutes - 04-02-20 - Special MeetingCity Council Minutes Special Meeting – April 2, 2020 1 MINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY SPECIAL MEETING APRIL 2, 2020 The City Council of the City of Downey held a Special City Council Meeting on April 2, 2020, at 8:46 a.m., in the Council Chamber of the Downey City Hall, 11111 Brookshire Avenue, Downey, California, with Mayor Pacheco presiding. PRESENT: Council Members: Blanca Pacheco Mayor Claudia M. Frometa Mayor Pro Tem Sean Ashton Council Member (teleconference) Rick Rodriguez Council Member Alex Saab Council Member ALSO PRESENT: Gilbert Livas, City Manager Yvette M. Abich Garcia, City Attorney Alicia Duarte, CMC, City Clerk The Invocation was delivered by Council Member Rodriguez. The Pledge of Allegiance was led by Council Member Saab. ADMINISTRATIVE REPORT 1. AN URGENCY ORDINANCE ALLOWING RESIDENTIAL TENANTS TO REPAY UNPAID RENTS WITHIN THREE MONTHS AFTER THE CITY TERMINATES THE LOCAL EMERGENCY; AND, A TEMPORARY MORATORIUM ON EVICTIONS OF COMMERCIAL TENANTS: Mayor Pacheco & Council Member Saab. 1) ADOPED ORDINANCE NO. 20-1438, AN UNCODIFIED URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 8634 AND DOWNEY CITY CHARTER SECTIONS 511 AND 514 ALLOWING TENANTS OF SINGLE FAMILY RESIDENCES AND DWELLING UNITS TO REPAY UNPAID RENTS WITHIN THREE (3) MONTHS AFTER THE CITY TERMINATES THE LOCAL EMERGENCY; AND, 2) ADOPTED ORDINANCE NO. 20-1439, AN UNCODIFIED URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 8634 AND DOWNEY CITY CHARTER SECTIONS 511 AND 514 ENACTING A TEMPORARY MORATORIUM ON EVICTIONS DUE TO NONPAYMENT OF RENT FOR COMMERCIAL TENANTS RESULTING FROM LOSS OF INCOME DUE TO THE NOVEL CORONAVIRUS (COVID-19) AND SETTING FORTH THE FACTS CONSTITUTING SUCH URGENCY. City Attorney Abich Garcia presented the staff report for this item. She reported, at the March 24, 2020 City Council Meeting, the City Council gave direction to the City Attorney to prepare an Urgency Ordinance for a temporary moratorium on evictions for tenants of single family residences and multiple dwelling units for the April 14, 2020 City Council meeting. She provided a brief history regarding the Governor’s Executive Order N-37-20 issued March 27, 2020, placing a statewide moratorium on evictions of tenants renting single family residences or dwellings units, subject to certain conditions. She stated the Executive Order is silent to the length of time a residential tenant has to repay rent. Therefore, the Urgency Ordinance provides residential tenants up to three months after the City Council Minutes Special Meeting – April 2, 2020 2 City terminates the Local Emergency to repay any unpaid rents to the landlord without late fees assessed for delayed rent due to COVID-19. City Attorney Abich Garcia stated the Governor’s Executive Order did not include commercial property tenants who suffered mandatory business closures due to the State and County closure orders. The Urgency Ordinance provides commercial property tenants protection if the tenant suffered a “financial impact” from loss of business income resulting from illness with COVID-19; income reduction resulting from business closure; layoff or furlough of employees of business; for complying with the President of the United States’ Declaration of National Emergency, the Governor of the State of California’s Declaration of State of Emergency, the City of Downey’s Proclamation of Local Emergency, or public health orders related to COVID-19 to stay at home; extraordinary out-of-pocket business or medical expenses; or child care needs arising from school closures related to COVID-19. The Urgency Ordinance sets conditions for tenants to notify their landlord in writing that they are not able to pay rent, prior to the due date, due to COVID-19 related impact and provide supporting documentation. The commercial tenant will have up to three months after the City terminates the Local Emergency to repay any unpaid rents to the landlord without late fees assessed for delayed rent due to COVID-19. City Attorney Abich Garcia announced Council Member Rodriguez will abstain from participating in the discussion related residential to tenants. Therefore, the City Council will begin discussion regarding the ordinance enacting a temporary moratorium on evictions of commercial tenants due to nonpayment of rent. Mayor Pacheco opened on-agenda public comment. Martha Kazimi, property owner, submitted written comments in opposition of a temporary moratorium on evictions. Alejandra Araiza, resident, submitted written comments in support of a temporary moratorium on evictions. Carlos J. Viramontes, property owner, submitted written comments in opposition of a temporary moratorium on evictions. Conrad Wyszomirski, property owner, submitted written comments in opposition of a temporary moratorium on evictions; and, in support of financial assistance for tenants.. Joseph Bartolo, resident, submitted written comments in opposition of a temporary moratorium on evictions. Cesar, resident, commented regarding in support of a temporary moratorium on evictions. Having no one else come forward, Mayor Pacheco closed public comment. Council Member Rodriguez abstained from the residential urgency ordinance due to owning rental property in the City and left the dais. Council Member Ashton requested clarification regarding the period in which a tenant will be allotted to repay their rent. He stated since the COVID-19 virus has many variables and it is uncertain how long the Stay at Home orders will continue he requests tenants be granted a three months grace period to repay rent for every one month of rent owed, and so forth. City Attorney Abich Garcia stated the urgency ordinance is only for a short period of time and in order to avoid rewriting the ordinance to include staggering repayment options, the City Council can City Council Minutes Special Meeting – April 2, 2020 3 adopt the urgency ordinance as written. The City Council has the option to request the item be brought back to discuss changes to the ordinance prior to its expiration. Discussion ensued amongst the City Council regarding the period of time that should be allotted to a tenant to repay back owed rent to their landlord and options to adopt the ordinance tonight and later revisit the topic prior to the ordinance’s sunset date of May 31, 2020. City Manager stated the urgency ordinance requires a 4/5 affirmative vote in order for the ordinance to be approved. He stated the Governor’s Executive Order is silent on when the tenant has to repay back owed rent to the landlord. The urgency ordinance will provide clarification for both sides. Council Member Saab agreed with the urgency ordinance as written to align with the forbearance provided to the mortgagees by the banks. It was moved by Council Member Saab, seconded by Mayor Pro Tem Frometa and approved 4-0-1, with Council Member Rodriguez abstaining to adopt Uncodified Urgency Ordinance No. 20-1438 of the City Council of the City of Downey pursuant to California Government Code Section 8634 and Downey City Charter Sections 511 and 514 allowing tenants of single family residences and dwelling units to repay unpaid rents within three (3) months after the City terminates the Local Emergency. Council Member Ashton requests to include the staggering component allowing commercial property tenants to repay the back owed rent over an extended period of time and announced he had to leave the meeting at 9:32 a.m. Council Member Rodriguez returned to the dais at 9:32 a.m. Mayor Pacheco stated the City Council will now discuss the urgency ordinance related to commercial property tenants. Council Member Rodriguez stated he could relate to the commercial tenants and he also understands the concerns expressed by the landlords. He added that it would be a disservice to the community not to provide information to the businesses regarding the available stimulus funding and recommended staff work with the Downey Chamber of Commerce to educate the property owners and local businesses on applying for the funding. City Manager Livas stated staff has started the planning to identify and disseminate information to the business community and mentioned Assistant to the City Manager De Rojas has begun providing CARES Act and other applicable information via social media. Staff is encouraging businesses to be expeditious and apply prior to the funds being exhausted. Council Member Saab inquired if the Community Development Block Grant fund could be used to assist the businesses. City Manager Livas stated the Community Development Block Grant funding is currently being utilized by the City to purchase COVID-19 related supplies such as the laptops, equipment, and software which are required for employees to telecommute. He stated the Small Business Administration has funding available and staff is working to gather the requirements for those loans to make that information available to the business community. It was moved by Mayor Pro Tem Frometa, seconded by Council Member Saab and approved 4-1-0, with Council Member Ashton excused to adopt an Uncodified Urgency Ordinance No. 20-1439 of the City Council of the City of Downey pursuant to California Government Code Section 8634 and Downey City Charter Sections 511 and 514 enacting a temporary moratorium on evictions due to nonpayment of rent for commercial tenants resulting from loss of income due to the Novel Coronavirus (COVID-19) and setting forth the fats constituting such urgency. City Council Minutes Special Meeting – April 2, 2020 4 STAFF MEMBER COMMENTS City Manager Livas thanked staff for their hard work on this agenda to ensure that residential and commercial tenants are protected. He invited the members of the public to visit the City’s website to retrieve information regarding the stimulus funding available. ADJOURNMENT Mayor Pacheco adjourned the Special City Council meeting at 9:39 a.m. in memory of Alex Bernard, Desert Reign Church; and, the lives affected by the Coronavirus. MARIA ALICIA DUARTE, CMC BLANCA PACHECO City Clerk Mayor