HomeMy WebLinkAboutRent Abatement for Certain Tenants at City-Owned Facilities z 00W✓Eb 7-0
City of Huntington Beach
File #: 20-1556 MEETING DATE: 3/31/2020
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Ursula Luna-Reynosa, Director of Community Development
Subject:
Rent Abatement for certain tenants at City-owned facilities
Statement of Issue:
The City owns real property throughout the City and has leased certain premises to tenants. Many of
the City's tenants have been gravely affected by the COVID-19 pandemic. The City Council is asked
to authorize and direct the City Manager and/or his designee to implement rent abatement for certain
tenants at City-owned facilities to mitigate some of the financial burden imposed due to the COVID-
19 pandemic.
Financial Impact:
The total estimated impact to the General Fund Revenue for Rent Abatement is $155,077 for the
month of March, $170,947 for April, and $174,296 per month for May and every month thereafter.
The overall Rent Abatement cost impacts include the following:
■ Rent abatement for Ocean View Estates Mobile Home Park account 10000100.43166 is
$53,352 per month.
■ Rent abatement for concessionaire lease accounts (10000100.43165; 10000100.43085;
10000100.43095; 10000100.43145; 10000100.43150; 10000100.43155) range from $101,725
to $120,944 per month, depending on time of year.
Recommended Action:
Authorize and direct the City Manager and/or his designee to implement rent abatement to
concessionaire tenants of various City-owned facilities, effective from the date of the issuance of the
State of California's Proclamation of State of Emergency (March 4, 2020) until the Proclamation is
lifted. A list of included tenants is attached as Attachment No. 1 .
Alternative Action(s):
Do not approve the rent abatement and direct staff accordingly.
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File #: 20-1556 MEETING DATE: 3/31/2020
Analysis:
Huntington Beach is responding to the spread of the novel coronavirus, COVID-19, a respiratory
illness being reported internationally, including in the United States and Orange County, California.
On January 31, 2020, the Federal Health and Human Services Secretary declared a public health
emergency to aid the nation's healthcare community in responding to the outbreak of COVID-19 in
the United States. On March 4, 2020, Governor Newsom issued a statewide Proclamation of State
of Emergency as a result of the threat of COVID-19 in the State of California. On March 11, 2020, the
World Health Organization characterized the COVID-19 outbreak as a global pandemic.
On March 12, 2020, Governor Newsom issued Executive Order N-25-20. The Governor stated,
among other things, that despite sustained efforts, COVID-19 remains a threat and further efforts are
needed to control the spread of the virus; that local officials may issue guidance limiting or
recommending limitations upon attendance at public assemblies, conferences, or other mass events;
and that individuals exposed to COVID-19 may be unable to work, may experience loss of income,
health care, medical coverage, and the ability to pay for housing and basic needs. The Governor
ordered among other things, that residents are to heed orders of state and local health officials,
including social distancing measures; and that provisions of state law relating to disability insurance,
unemployment insurance, emergency medical services, taxes, medical facilities, and public
meetings, are modified during this emergency.
On March 16, 2020, the City Council ratified the existence of a local emergency in Huntington Beach
as a result of the COVID-19 pandemic. On March 17, 2020, the Orange County Health Officer
issued an order which greatly restricted the public's ability to gather for non-essential activities, which
order was amended on March 18, 2020, whereby food and beverage establishments are required to
follow guidance released from the California Department of Public Health ("CDPH"). CDPH
guidelines recommend that restaurants should be closed for in-restaurant seated dining and should
be open only to drive-through or other pick-up/ delivery options.
Upon issuance of these orders, local concessionaires operating at City facilities have seen a
dramatic reduction in business. While the orders did not preclude these businesses from serving
food, the social distancing measures recommended by the Centers for Disease Control (CDC) and
CDPH have brought business to a halt. The reduction in revenue for a majority of business is
creating a global economic downturn.
Several concessionaire owners have reached out to staff requesting assistance as a result of the
economic downturn caused by COVID-19. The majority of these concessionaires are small, family-
owned businesses. By implementing a rent abatement for affected tenants, the City will help mitigate
the financial burden caused by COVID-19 and, hopefully, prevent the permanent closure of these
businesses.
In addition to the concessionaire tenants, the City owns and operates the Ocean View Estates Mobile
Home Park (OVE) and leases 44 mobile home spaces individually to tenants (with the tenants
owning their respective mobile home). The majority of the tenants are elderly, qualify as low-income,
and are also likely enduring financial hardships as a result of COVID-19. By extending the rent
abatement to OVE tenants, it will allow them to address the burden of other financial obligations that
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File #: 20-1556 MEETING DATE: 3/31/2020
have been exasperated from the COVID-19 crisis.
A complete list of the concessionaires and OVE tenants is provided as Attachment No. 1.
Environmental Status:
The effected lease agreements are existing agreements and modifying payment terms to abate rent
during a limited duration will not result in either a direct physical change in the environment, or a
reasonably foreseeable indirect physical change in the environment and is therefore not a "project"
per Section 15378 of the California Environmental Quality Act (CEQA) Guidelines.
Strategic Plan Goal:
Strengthen long-term financial and economic sustainability
Attachment(s):
1. List of Concessionaire and Ocean View Estate Tenants
City of Huntington Beach Page 3 of 3 Printed on 3/30/2020
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Council/PFA Special Meeting Minutes
March 31, 2020
Page 3 of 6
3. 20-1556 Approved Rent Abatement for Tenants at Certain City-owned Facilities
Councilmember Posey and City Manager Chi discussed the reasons for rent abatement.
A motion was made by Posey, second Peterson to authorize and direct the City Manager and/or his
designee to implement rent abatement to concessionaire tenants of various City-owned facilities,
excluding Ocean View Estates, effective from the date of the issuance of the State of California's
Proclamation of State of Emergency (March 4, 2020) until the Proclamation is lifted. A list of included
tenants is attached as Attachment No. 1.
Councilmember Delgleize asked, and City Manager Chi confirmed, that the Ocean View Estate renters
are not included in Administrative Item No. 4 regarding tenant evictions.
Mayor Semeta and City Manager Chi discussed the possibility of requiring evidence of need.
Councilmember Posey explained his opinion that a concessionaires' hardship is created by the City in
this situation, but any hardship experienced by tenants at Ocean View Estates would not be a result of
City actions.
Councilmember Brenden expressed support for Councilmember Posey's motion based on his
understanding that the Ocean View Estates tenants are protected by Governor Newsom's recently
issued Executive Order to Protect Renters.
Mayor Semeta stated her support for the amended motion.
The motion as amended by Councilmember Posey, second Peterson, carried by the following vote:
AYES: Posey, Delgleize, Hardy, Semeta, Peterson, Carr, and Brenden
NOES: None
ADMINISTRATIVE ITEMS
4. 20-1559 Denied Adoption of Emergency Ordinance 4210 Establishing Temporary Ban on
Certain Tenant Evictions for Non-Payment of Rent as a Result of COVID-19 Related
Financial Impacts
City Manager Chi introduced this item by explaining Governor Newsom's issuance of an Executive Order
to ban residential evictions, and this proposed City Emergency Ordinance addresses commercial and
residential tenants. The distinctions between Governor Newsom's Order and the City's Ordinance are 1)
length of time or duration, 2) the penalties provision, and 3) the City is including commercial tenants.
Councilmember Peterson stated his understanding that when this Emergency Ordinance was originally
discussed, Governor Newsom had not yet addressed the issue of tenant evictions. City Attorney Gates
explained the technicalities related to emergency ordinances, and explained this is a supplement to
Governor Newsom's Executive Order to provide local enforcement, because there is no enforcement
mechanism from Sacramento. Councilmember Peterson explained his objection to what he sees as
government taking away essential liberties.
City Attorney Gates explained that this Emergency Ordinance is legal, there is no interference with
leases or contracts, or the relationship between landlords and tenants, as it only removes a landlord's
abilities to immediately run to court right now to seek a court order to evict.
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Park Name Space Sal First Last Name Monthly Rent
Ocean View
Estates 1 Ms. Renee Devito $ 1,245.13
Ocean View
Estates 2 Mr. Kirk Lindemann $ 1,245.13
Ocean View
Estates 3 Mrs. Violet Love $ 1,245.13
Ocean View
Estates 4 Ms. Tina Hutton $ 1,245.13
Ocean View
Estates 5 Ms. Melissa Rodgers $ 1,245.13
Ocean View
Estates 6 Mr. Mitchell Schmidt $ 1,245.13
Ocean View
Estates 7 Mr. & Mrs. Richard Chemotti $ 1,245.13
Ocean View
Estates 8 Mr. Dean Grubb $ 1,293.48
Ocean View
Estates 9 Mr. John Adam $ 1,245.13
Ocean View
Estates 10 Mr. Joe Randle $ 1,245.13
Ocean View
Estates 11 Ms. Cynthia Schrock $ 1,245.13
Ocean View
Estates 12 Ms. Rose Perez $ 1,000.23
Ocean View
Estates 13 Mr. and Mrs. Francisco Padilla $ 1,245.13
Ocean View
Estates 14 M.S. Bobbi Morrill $ 1,245.13
Ocean View
Estates 15 Mr. & Mrs. Joe Masamitsu $ 1,245.13
Ocean View
Estates 16 Mr. Robert Wabbel $ 1,561.91
Ocean View
Estates 17 Mr. & Mrs. Gerald Tuso $ 1,245.13
Ocean View
Estates 18 Mr. & Mrs. Arthur Vargas Jr. $ 1,000.23
Ocean View
Estates 19 Mr. & Mrs. Miguel Santana $ 1,160.22
Ocean View
Estates 20 Mr. Blake Pannell $ 1,245.13
Ocean View
Estates 21 Mr. Glen Vauthrin $ 1,245.13
Ocean View
Estates 22 1 Mr. & Mrs. Niem Pham $ 1,245.13
27
Ocean View
Estates 23 Mr. Robert Hirshmann $ 1,245.13
Ocean View
Estates 24 Ms. Shannon Skilliter $ 1,245.13
Ocean View
Estates 25 Mrs. Juna Otting $ 1,000.23
Ocean View
Estates 26 Ms. Janell Carlson $ 1,245.13
Ocean View
Estates 27 Mr. & Mrs. Xenos J Bandonell $ 1,245.13
Ocean View
Estates 28 Mr. & Mrs. Arturo Sanchez $ 1,245.13
Ocean View
Estates 29 Mr. Jeffrey Haibel $ 1,000.23
Ocean View
Estates 30 Ms. Ingrid Gaddis $ 1,000.23
Ocean View
Estates 31 Ms. Lola Archibald $ 1,245.13
Ocean View
Estates 32 Ms. Carmen Garcia $ 1,245.13
Ocean View
Estates 33 Ms. Ana Carrillo $ 1,245.13
Ocean View
Estates 34 Mr. & Mrs. Jason Ploof $ 1,245.13
Ocean View
Estates 35 Mr. and Mrs. Bradley Whitfield $ 1,245.13
Ocean View
Estates 36 Mr. Gary Sequeira $ 1,245.13
Ocean View
Estates 37 Mr. Matthew Evans $ 1,245.13
Ocean View
Estates 38 Mr& Mrs. Lonny Zurba $ 1,245.13
Ocean View
Estates 39 Mr. & Mrs. Marcos Rebollar $ 1,245.13
Ocean View
Estates 40 Mrs. Eugenia Csikos Kiser $ 1,245.13
Ocean View
Estates 41 Ms. Joan Boardman $ 1,000.23
Ocean View
Estates 42 Mr. and Mrs. Peggy Kavanaugh $ 1,245.13
Ocean View
Estates 43 Fader Family Trust $ 1,245.13
Ocean View
Estates 44 Ms. Hillary Sween $ 1,000.23
Monthly Total Rent $ 53,351.52
28
Opened: Closed:
Work Order: #268601 03/20/202010:46 03/31202
0
Resolution D. Not
Agenda & Public Hearing Comments By Tommasina Cirrito
Email Shztomie@charter.net
SUB TYPE Phone
City Council Meeting Device
STREET ADDRESS
Media Submitted
None
x❑
COMMENTS &ADDITIONAL NOTES
Will there be any relief for renters and for those in Mobil home parks
Status Changed:03/31/2020 12:26 PM Donna Switzer
Work Order#268601 status has changed from new to resolved. SQ-P`PLEMENTAL
Thank you for sharing your concerns and comments.Your communication will be shared with the City COMMUNICATION
Council and will be included in the record regarding Emergency Ordinance 4120 establishing a
temporary ban on certain tenant evictions. `I-9ting(Date:
Sincerely,
Aqenda Rem No.;-
Donna Switzer
Deputy City Clerk
Share with Citizen:YES
Assigned Worker:03/31/2020 9:58 AM Sandra Frakes
Workorder#268601 has been assigned to Donna Switzer.
Issue Type/Subtype Changed:03/31/2020 9:58 AM Sandra Frakes
Workorder#268601 Issue type changed from City Council to Agenda&Public Hearing Comments and
subtype City Council Meeting.
Share with Citizen:NO
e
Opened: Closed:
Work Order: #268593 03/20/202010:44 03/31202
0
This issue is resolved Est. Resolution Date: Not.Yet Set
Agenda & Public Hearing Comments By Tommasina Cirrito
Email Shztomie@charter.net
SUB TYPE Phone 714-330-5774
City Council Meeting Device
STREET ADDRESS
Media Submitted
None
COMMENTS &ADDITIONAL NOTES
We need to submit relief for renters and those who pay space rent in Mobil home parks we
NEED HELP.HUNTINGTON by the Sea Mobil home park
Status Changed:03/31/2020 12:27 PM Donna Switzer
Work Order#268593 status has changed from new to resolved. SUPPLEMENTAL
Thank you for sharing your concerns and comments.Your communication will be shared with the City "7-OM I UNICATION
Council and will be included in the record regarding Emergency Ordinance 4120 establishing a
temporary ban on certain tenant evictions. y�e961i1� +�I3� ZU
Sincerely,
Agenda►hem No, (3(-20— f SSCp
Donna Switzer
Deputy City Clerk
Share with Citizen:YES
Assigned Worker:03/31/2020 9:58 AM Sandra Rrakes
Workorder#268593 has been assigned to Donna Switzer.
Share with Citizen:NO
Issue Type/Subtype Changed:03/31/2020 9:58 AM Sandra Frakes
Workorder#268593 Issue type changed from City Council to Agenda&Public Hearing Comments and
subtype City Council Meeting.
Share with Citizen:NO
Switzer, Donna
From: MyHB <reply@mycivicapps.com>
Sent: Tuesday, March 31, 2020 10:18 AM
To: Switzer, Donna
Subject: T Assigned - MyHB-#272404 Agenda & Public Hearing Comments
MyHB
Assigned Worker-#272404
Workorder#272404 has been assigned to Donna Switzer.
Status
new
Work Order
#272404
Issue Type
Agenda&Public Hearing Comments
Subtype
City Council Meeting
Staff Member(s)
Donna Switzer
Notes
I see some banks are allowing a grace period for their mortgage. I rent at Huntington by the sea mobile home Is there any way
that there's gonna be A grace period for renters in Huntington Beach.Thank you
View the Report
Reporter Name
Ron Miller
Email
Bowlerman12004@yahoo.com
Phone
909-944-7609
Report Submitted
MAR 27, 2020-12:51 PM
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Please do not change subject line when responding.
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Switzer, Donna
From: MyHB <reply@mycivicapps.com>
Sent: Tuesday, March 31, 2020 9:58 AM
To: Switzer, Donna
Subject: T Assigned - MyHB-#268593 Agenda & Public Hearing Comments
MyHB
Assigned Worker-#268593
Workorder#268593 has been assigned to Donna Switzer.
Status
new
Work Order
#268593
Issue Type
Agenda&Public Hearing Comments
Subtype
City Council Meeting
Staff Member(s)
Donna Switzer
Notes
We need to submit relief for renters and those who pay space rent in Mobil home parks we NEED HELP. HUNTINGTON by the
Sea Mobil home park
View the Report
Reporter Name
Tommasina Cirrito
Email
Shztomie@charter.net
Phone
714-330-5774
Report Submitted
MAR 20, 2020-10:44 AM
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