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HomeMy WebLinkAboutMin - CC - 2020.03.25CITY O BURLINGAME $AarEo � xE � BURLINGAME CITY COUNCIL Approved Minutes Special Meeting on March 25, 2020 1. CALL TO ORDER A duly noticed meeting of the Burlingame City Council was held online on the above date at 6:01 p.m. 2. PLEDGE OF ALLEGIANCE TO THE FLAG The pledge of allegiance was led by Mayor Beach. 3. ROLL CALL MEMBERS PRESENT: Beach, Brownrigg, Colson, O'Brien Keighran, Ortiz MEMBERS ABSENT: None 4. PUBLIC COMMENT There was no public comment. 5. STAFF REPORTS a. UPDATE ON COVID-19 PUBLIC HEALTH EMERGENCY AND LOCAL MEASURES: COUNCIL DIRECTION ON CHARITABLE SUPPORT, ADOPTION OF A RESOLUTION SUSPENDING THE REQUIREMENT THAT RETAILERS CHARGE FOR SINGLE -USE BAGS DURING THE LOCAL EMERGENCY. AND DISCUSSION OF MEASURES TO ADDRESS EVICTIONS City Manager Goldman stated that on March 4, 2020, Governor Newsom declared a State of Emergency as a result of the threat of COVID-19. On March 11, 2020, the World Health Organization declared that COVID- 19 was a pandemic. She noted that the County declared a local emergency on March 10, and the City declared its own local emergency on March 16. City Manager Goldman stated that six Bay Area county health directors issued a strict shelter -in -place order for residents and businesses starting on March 17. She noted that Governor Newsom issued a similar stay at home order on March 19 for the entire state. Burlingame City Council March 25, 2020 Approved Minutes City Manager Goldman stated that on March 24, the San Mateo County Board of Supervisors adopted a resolution establishing a temporary countywide moratorium on residential evictions for nonpayment of rent. She noted that this only applied where the individual could not pay rent as a result of COVID-19. Additionally, the Board of Supervisors adopted a resolution authorizing the donation of $3 million in Measure K funds to the Silicon Valley Community Foundation. She explained that the Silicon Valley Community Foundation started a new fund called SMC Strong. SMC Strong was established to assist individuals, families, non-profit organizations, and small businesses that are adversely impacted by COVID- 19. She noted that if people are interested in donating, they can go to https://www.smcstrong.org// City Manager Goldman stated that on March 24, the City hosted a virtual town hall to answer the community's questions. She explained that the town hall had been recorded and was on the City's website. She added that City Council and Commission meetings would be held virtually for the foreseeable future. City Manager Goldman stated that the Peninsula Hospital needs childcare services for emergency personnel. She explained that Parks and Recreation Director Glomstad and CCFD Community Risk and Resiliency Specialist Dena Gunning are working with Burlingame School District and others to assist with this need. City Manager Goldman stated that the Community Development Department is reviewing options for receiving plan and permit applications electronically. She noted that under the County's shelter -in -place order (the March 16t' order), housing construction can continue. Under the March 16 order, commercial construction is not allowed to continue. City Manager Goldman stated that the Public Works Department is seeing an increase in calls for sewer lateral tests and encroachment permits. She noted that staff is doing their best to accommodate these requests. City Manager Goldman stated that the Police Department is getting calls about violations of the shelter -in - place order. She added that Sephora's headquarters has ordered all their stores to board up their windows to prevent looting. City Manager Goldman explained that staff is looking for Council's direction on a few issues. City Manager Goldman explained that at the March 16, 2020 Council meeting, the Council discussed providing $30,000 in funding to Samaritan House and Call Primrose to assist those in need during the shelter -in -place. She asked Council for direction on whether $30,000 was still the correct amount and how much each organization would receive. Councilmember Colson asked if individuals could direct their SMC Strong donations to a specified region. City Manager Goldman replied in the negative. She stated that the SMC Strong fund did let the public choose whether they wanted the donation directed to individuals/families, small businesses, or nonprofits. Councilmember Colson discussed SAMCEDA (San Mateo County Economic Development Association). She noted that SAMCEDA is compiling business assistance programs and a variety of other resources for local small businesses. 2 Burlingame City Council March 25, 2020 Approved Minutes City Manager Goldman noted that she believed the small business loan application would be coming out in the following week. Councilmember Ortiz stated that he didn't believe $30,000 would be adequate. He asked which fund the City would be utilizing for this donation. City Manager Goldman stated that the City had an unassigned fund balance that could be used. Mayor Beach asked if there were any public comments on this issue. There were no public comments. Mayor Beach stated that the needs of the community were changing daily. She noted that at a later date, the Council would need to discuss utilizing the City's affordable housing funds for emergency rental assistance. Councilmember Brownrigg agreed with Mayor Beach that the situation was changing on a daily basis and suggested that the Council should meet at least every two weeks to be able to quickly address the needs of the community. Councilmember Brownrigg stated that he agreed with Councilmember Ortiz that $30,000 would not be enough and that the City would make additional donations. He suggested that the City start with $30,000, with $10,000 for Call Primrose and $20,000 for Samaritan House. Vice Mayor O'Brien Keighran stated that she agreed with Councilmember Brownrigg that the Council would need to meet more regularly to address the changing needs of the community. Vice Mayor O'Brien Keighran discussed SAMCEDA's work to assist small businesses and stated that the County was working on some small business programs. Councilmember Brownrigg explained that while he appreciated the work of SAMCEDA and SMC Strong, he believed that it was important for the City to also reach out to assist local small businesses. Councilmember Colson stated that she concurred with Councilmember Brownrigg. She stated that Councilmember Brownrigg and she would be speaking to SAMCEDA President Rosanne Foust on March 26 about assistance for small businesses. She explained that after this discussion, the Council would have a better understanding of what the City's approach to assisting small businesses should be. Councilmember Brownrigg made a motion to provide $10,000 in funding to Call Primrose and $20,000 to Samaritan House; seconded by Vice Mayor O'Brien Keighran. The motion passed unanimously by roll call vote, 5-0. City Manager Goldman stated that the next issue that staff needed Council direction on came from a resident voicing concern about the public using their own bags at stores during the pandemic. She explained that in 2013, the City adopted San Mateo County's program restricting the use of single -use carry -out bags. She stated that under the ordinance, retailers must charge those customers who request a single -use bag upon checkout. She noted that given the ongoing health emergency and the need to protect cashiers and Burlingame City Council March 25, 2020 Approved Minutes customers, staff is recommending temporarily suspending the requirement to charge for single -use bags. She added that staff included a resolution with the staff report that would temporarily suspend the requirement. Mayor Beach asked if the resolution suspends the fee or allows the use of single -use bags. City Attorney Kane stated that the resolution suspends enforcement of the ordinance. However, she noted that the resolution would not require retailers to provide single -use bags. Vice Mayor O'Brien Keighran noted that the staff report states that staff recommends temporarily suspending the charge for single -use bags. She explained that her concern is that if residents read that, they are going to think they won't be charged a fee for bags at grocery stores. She asked if staff reached out to the Chamber of Commerce and grocery stores. City Manager Goldman replied in the negative. She explained that staff wanted to get Council's input first. City Attorney Kane stated that the resolution does not mandate that retailers hand out single -use bags for free. Vice Mayor O'Brien Keighran stated that if the Council adopts this resolution, staff should state on the City's website that it is up to individual grocers whether they waive the fee for single -use bags. Councilmember Ortiz stated that he was confused about the purpose of suspending the ordinance. He explained that when he goes to the grocery store, he uses his own bags and bags his own groceries. He stated that this seems like the safest practice to prevent the spread of COVID-19. Councilmember Colson asked if the point of the resolution is that retailers don't want people bringing in bags that could be contaminated. She discussed how Starbucks stopped allowing customers to use their own mugs to protect their employees. She stated that if this was the point, then it might be better for the City to just tell the public that they can't use their own bags at grocery stores. City Attorney Kane stated the resolution is designed to take the City out of the equation. Instead each retailer would be able to decide what is best for them in order to keep their staff safe. Mayor Beach opened the item up for public comment. No one spoke. Councilmember Colson made a motion to adopt Resolution Number 034-2020; seconded by Councilmember Brownrigg. The motion passed unanimously by roll call vote, 5-0. Mayor Beach stated that the next topic for Council discussion was measures to address evictions. She explained that the Council received inquiries from the community about whether the City would take action to prevent both residential and commercial evictions. City Attorney Kane stated that the County's necessary shelter -in -place order has had immediate and, in some cases, devastating economic effects on many households and businesses in the Bay Area. She explained that a lot of people don't have a significant cash cushion to assist them if their hours are cut, they are furloughed, or they are laid off. Therefore, many people will have issues paying their rent. 4 Burlingame City Council March 25, 2020 Approved Minutes City Attorney Kane explained that she worked with the County's general counsel and the other San Mateo County cities on the issue of residential evictions. She stated that it was determined that because the shelter - in -place order came from the County, that the County was the appropriate entity to deal with the question of residential displacement. She explained that on March 24, the County Board of Supervisors adopted a moratorium on residential evictions. She added that the County did not take on the issue of mortgage payments because of the federal nature of those arrangements. City Attorney Kane discussed the issue of commercial evictions. She explained that commercial evictions were not addressed in the County's moratorium because there is less of a direct nexus to the public health portion of the County's powers. City Attorney Kane discussed the confusion with the Governor's executive orders and press releases. She noted that a press release had announced that Governor Newsom was putting a moratorium on residential evictions until May 31. However, she explained that the Governor's Executive Order pushed the question down to local jurisdictions. Councilmember Brownrigg commended the City Attorney for her work with County counsel on the countywide moratorium. He noted that he was happy to see that Fannie Mae and Freddie Mac had announced that they wouldn't foreclose on mortgages where the individual couldn't pay their mortgage due to COVID-19. Councilmember Brownrigg stated that he thought the City needed to look at ways to support small businesses in the community. He noted that the City of Sacramento adopted a four -month moratorium on commercial evictions where the underlying issue was COVID-19. Mayor Beach stated that Governor Newsom released a press release saying that he is working with major banks to assist in residential mortgage pauses. City Manager Goldman replied in the affirmative. She stated that Governor Newsom reached agreements with Wells Fargo, JP Morgan, US Bank, and 200 State charter banks and credit unions. She explained that under the agreements, there would be a 90-day grace period for mortgage payments for those impacted by COVID-19. Mayor Beach noted that other banks that were notably missing from that list. City Attorney Kane noted that because the County took action on residential evictions, the City has the opportunity to focus on assisting local businesses. She discussed the issue of the gift of public funds but stated that she believed that the City could avoid this by creating bridge loans for small businesses as an economic development tool. She stated that the requirement would be that the program is open and accessible. Mayor Beach stated that she hadn't heard of any business in Burlingame being evicted for nonpayment of rent. She noted that she has heard that several landlords are working with their commercial tenants. She asked if her colleagues had heard anything. 5 Burlingame City Council March 25, 2020 Approved Minutes Vice Mayor O'Brien Keighran stated that she hadn't received any phone calls or emails from small businesses on issues they were having with their landlords. Councilmember Ortiz stated that he hadn't heard of any businesses being evicted. However, he noted that he has heard from many businesses whose income has been completely shut down due to the shelter -in -place order. He explained that while some of the commercial tenants may be able to pay April rent, if the shelter - in -place order is extended, they would be in trouble. He stated that he believed the City needed to step in and help local businesses. Councilmember Colson stated that she spoke with several landlords and tenants, and no one has indicated that commercial tenants are getting an eviction notice. Councilmember Colson stated that she had received an email from a commercial tenant asking the Council to adopt a moratorium on commercial evictions. She noted that her concern is that the landlords and tenants seem to be negotiating amongst themselves, and therefore she didn't know if the City should get involved. She explained that if she heard that businesses were going to get evicted, then she would be more inclined to put an emergency ordinance together halting commercial evictions. She added that she had heard that some landowners were offering commercial tenants rent reductions and abatements. Therefore, it might not be in the best interest of the tenant for the City to get involved. Councilmember Brownrigg stated that his concern was that if the City waits for commercial tenants to be evicted, then the Council is past the point of being able to do something meaningful. He explained that he believed the City needed to be robust in showing that they are assisting businesses. He noted that he believed that the Sacramento approach of halting commercial evictions or City Attorney Kane's suggestion of bridge loans would both work. He added that the two approaches weren't mutually exclusive. Mayor Beach asked the City Attorney to discuss the eviction process. City Attorney Kane stated that the unlawful detainer schedule for the Superior Court has been suspended. She explained that this is the mechanism by which an eviction is completed. She added that the Sheriff's office is not enforcing eviction notices except in the case where the tenant is posing a threat. However, she explained that a lot of people leave without a formal eviction process. Therefore, while the court process is not going forward, a lot of tenants respond to the landlord's notice and leave. Mayor Beach stated that Redwood City considered a moratorium on commercial evictions but decided to wait and see, and San Mateo implemented a moratorium on commercial evictions. She asked if Measure T would impact the City's ability to enact a moratorium on commercial evictions. City Attorney Kane gave a brief background on Measure T. She explained that it was approved by the voters in 1987, and pursuant to the measure, the Council can't set the sale or rental price of any real estate unit. She noted that the measure's simplicity creates ambiguity in how it applies in different situations. She stated that the City can anticipate that people will raise Measure T as an impediment to various things that the Council considers in terms of addressing affordable housing and other issues. She added that any action taken by the voters can only be undone by the voters. She noted that there is the question of whether a temporary moratorium would violate Measure T. 6 Burlingame City Council March 25, 2020 Approved Minutes Mayor Beach opened the item up for public comment. No one spoke. Vice Mayor O'Brien Keighran stated that it would be helpful to review San Mateo and Sacramento's commercial eviction moratoriums. She also asked that the City's Economic Development Specialist call property owners and tenants to see if they are working out agreements amongst themselves. Mayor Beach stated that she talked with two property owners that own significant real estate on Burlingame Avenue. She explained that it was her understanding that the property owners are deeply invested in keeping Burlingame Avenue thriving. She noted that if a property owner does evict a tenant, they would not be able to show the property or move in a new tenant. Therefore, she didn't think property owners would serve eviction notices. She stated that the bigger fear that she has heard is that some businesses' funds are very low, and they may not make it even with a rent deferral. She added that she has heard that other landlords are waiting to hear what happens in the mortgage industry prior to reaching out to their tenants. Mayor Beach suggested setting up a City email address to hear from small businesses so that the Council and staff could obtain more information on what is happening and what is needed. Councilmember Ortiz stated that he agreed with his colleagues that it is in the property owner's best interests to work with their tenants. He explained that he believed the City should establish a fund to help the small businesses. He stated that if the shelter -in -place goes longer, the businesses will be further strained. Councilmember Brownrigg stated that time is of the essence. He suggested creating a Council subcommittee to formulate a package of options for small businesses. He noted that then this could be reviewed by Council. Councilmember Colson stated that in speaking to restaurant owners, she was informed that many would be okay for 30 days. If the shelter continued for 60 days, it would put several out of business. Therefore, she agreed with Councilmember Brownrigg that the timing is critical. She noted that she didn't believe evictions would be the issue for commercial tenants as landlords know they are unable to get another tenant in. Councilmember Colson suggested that a subcommittee put a package together for the Council to consider within a week to assist businesses. Mayor Beach agreed with Councilmember Colson. She stated that before the Council considers a moratorium on commercial evictions, she would want to see data that this is an issue. She discussed SAMCEDA and the SMC Strong Fund and how they will be assisting small businesses. Mayor Beach asked if any of her colleagues would want to be on the subcommittee. Councilmember Colson, Councilmember Ortiz, and Councilmember Brownrigg all acknowledged their willingness to help. City Manager Goldman stated that for scheduling purposes it would be best to limit it to two Councilmembers. However, she noted that if more wanted to attend the meetings, this could be done, but the committee would then need to comply with the Brown Act. 7 Burlingame City Council March 25, 2020 Approved Minutes Mayor Beach determined that Councilmember Brownrigg and Councilmember Colson would work on putting together a package for small businesses. City Manager Goldman stated that this package could be discussed at the City's next Council meeting. Councilmember Colson suggested that she and Councilmember Brownrigg could create the framework of the project, and then if the City decided to go with loans, Councilmember Ortiz's expertise would be beneficial. Council agreed. 6. ADJOURNMENT Mayor Beach adjourned the meeting at 7:32 p.m. Respectfully submitted, /s/ Meaghan Hassel -Shearer City Clerk 8 Burlingame City Council March 25, 2020 Approved Minutes