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CITY COUNCIL STAFF REPORT

DATE: May 21, 2020 UNFINISHED BUSINESS

SUBJECT: DISCUSSION OF IMPACTS AND RESPONSES TO THE LOCAL EMERGENCY RELATED TO THE NOVEL CORONAVIRUS (COVID-19), INCLUDING DISCUSSION AND POSSIBLE DIRECTION REGARDING EMERGENCY ORDERS, SUCH AS THE CITY'S SHORT TERM LODGING PROHIBITION

FROM: David H. Ready, City Manager

BY: Jeffrey Ballinger, City Attorney

SUMMARY

This agenda item provides for the City Council's consideration of the various impacts and responses that the City has taken related to the local emergency caused by the novel coronavirus (COVID-19). The item also provides an opportunity for the City Council to discuss, and possibly provide direction, regarding the various emergency orders that the City has issued, such as the City's emergency short term lodging order.

RECOMMENDATION:

1. Discuss aad provide direction to staff on any emergency orders, including the City's emergency order regarding short term lodging.

BACKGROUND:

On March 4, 2020, Governor Gavin Newsom declared a State of Emergency due to the number of confirmed cases of COVID-19 in the state of California~ On March 11, 2020, WHO declared COVID-19 a global pandemic.

In response to the increasing spread of COVID-19, on March 14, 2020, the City Manager, acting as the City's Director of Emergency Services, issued a "Declaration of the Ex~stence of a Local Emergency," relating to the spread of COVID-19, pursuant to his authority identified in PSMC section 2.20.050(a)(1 ). Pursuant to the City's declaration, the City Manager restricted public access at all City facilities, including City

ITEM NO. J./ A

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City Council Staff Report May 21, 2020 -- Page 2 COVID-19 Impacts and Responses

Hall, the swim center, skate park, and dog parks.

In addition, the City Manager subsequently issued several emergency orders, pursuant to the authority granted by PSMC 2.20.05(a)(6). One such order was the March 24 order, prohibiting short term lodging within the City, unless such lodging is for COVID-19 mitigation or containment purposes, including providing lodging for essential workers. That order was originally effective until April 30, 2020.

At the April 23, 2020 City Council meeting, the City Council extended the effectiveness of the March 24 short term lodging order through May 31, 2020. The City Council also added as a recognized COVID-19 use the lodging of victims or witnesses of domestic violence. This was done due to the mounting evidence that domestic abuse increases during emergency situations such as the COVID-19 pandemic, and because shelters are at a greater risk of closing or being under-resourced during this pandemic. Accompanying this staff report, as Attachment 1, is the current version of the City's short term lodging order.

STAFF ANALYSIS:

Because the City's current short term lodging order is set to expire on May 31, 2020, this item is being brought before the City Council for the Council to consider whether, and how long, to extend the order.

The State's stay at home order and its list of "essential workers" (dated April 28, 2020) includes the following category of essential workers:

"Workers managing or servicing hotels or other commercial and residential buildings that are used for COVID-19 mitigation and containment measures, treatment measures, provide accommodation for essential workers, or providing housing solutions, including measures to protect homeless populations."

This language is similar to the language in a previous State list of essential workers, upon which the City's March 24 short term lodging order was based. 1

1 The State's March 22, 2020 list of essential workers included the following, "Hotel Workers where hotels are used for COVID-19 mitigation and containment measures, including measures to protect homeless populations."

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City Council Staff Report May 21, 2020 -- Page 3 COVID-19 Impacts and Responses

As part of the California's Resiliency Roadmap, there are four (4) stages that the State will move through.

STAGE 1: Safety and preparedness

Make workplaces

safe for our

essential workers.

STAGE 2: Lower-risk workplaces

Gradually reopen

retail (curbside

only), manufacturing &

logistics. Later,

relax retail

restrictions,

adapt & reopen

schools, child

care, offices &

limited

hospitality,

personal services.

> STAGE 3: Higher-risk workplaces

Adapt and reopen

movie theaters,

religious services,

&more

personal & hospit

ality services.

> STAGE 4: End of Stay Home Order

Reopen areas of

highest risk: e.g.

Concerts,

conventions,

sports arenas.

The Governor has indicated that the State is currently in the beginning of Stage 2, where retail (curbside and delivery only), related logistics and manufacturing, office workplaces, limited personal services, outdoor museums, and essential businesses can re-open, with certain safeguards in place. The next stage, Stage 3, includes "hospitality" services, which would appear to include hotels and other short-term lodging facilities.

However, the State is not yet at Stage 3, and the Governor has given no clear date at which he believes the State will be there. Therefore, it would seem prudent to extend the City's short term lodging prohibition through the end of June. Should the State move to Stage 3 sooner, the City could rescind or modify this order.

In addition to extending the effective date of the City's short term lodging order, City staff and the City Attorney's Office believe that the City's order should be amended to specify that the lodging that is prohibited is not dependent on the amount of time that

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City Council Staff Report May 21, 2020 -- Page 4 COVID-19 Impacts and Responses

the property is rented, but instead is based on the nature of the lodging. For instance, before it was rescinded, the County of Riverside's most recent short term lodging order defined a "short term lodging facility" as one that provides lodging for sixty (60) days or less. Although such a definition provides some clarity and therefore is easier to enforce, City staff has consistently interpreted the City's short term lodging not by reference to the number of days, but instead by reference to the purpose for the lodging. That is, if the purpose of the lodging is for leisure, vacation or recreational purposes, then it is prohibited. On the other hand, if a facility provides lodging for one of the allowed reasons in the State's definition of essential lodging,2 then it would be permissible under the City's order.

CONCLUSION:

It is recommended that the City Council consider and discuss the impacts of COVID-19 and the City's responses, including the City's emergency orders, and direct staff accordingly. Specifically, staff seeks Council's direction regarding the potential extension and amendment of the City's short term lodging order.

ENVIRONMENTAL IMPACT:

In accordance with Section 21080(b)(4) of the California Public Resources Code, the California Environmental Quality Act (CEQA) is not applicable to any actions necessary to prevent or mitigate an emergency.

FISCAL IMPACT:

The continued limits on short term lodging within the City will have a negative financial impact on the proprietors of those facilities, as well as a negative impact on the City's collection of transient occupancy taxes. At this time it is not possible to determine the precise amount of such impacts, given the continued existence of the State's stay at home order and the associated limits on other hospitality-related activities, such as concerts, movies and other entertainment venues.

SUBMITTED:

-z~:?~~ David H. Ready, Esq., Ph. . City Manager City Attorney

Attachments:

1. City's April 25, 2020 Short Term Lodging Order

2 I.e., COVID-19 mitigation and containment measures, treatment measures, provide accommodation for essential workers, or providing housing solutions, including measures to protect homeless populations.

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ATTACHMENT 1

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CITY OF PALM SPRINGS LOCAL EMERGENCY

AMENDED SUPPLEMENTARY ORDER HOTELS, VACATION RENTALS, AND HOMESHARING

April 25, 2020

WHEREAS, on March 14, 2020, pursuant to the City of Palm Springs Municipal Code section 2.20.050(a)(1), the City Manager, acting as the Director of Emergency Services, declared the existence of a local emergency within the City of Palm Springs, due to the threat presented by the COVID-19 pandemic, which declaration was subsequently ratified by the Palm Springs City Council on March 19, 2020; and

WHEREAS, on March 19, 2020, the State of Califomia imposed a "shelter in place" order, which required all persons in Califomia to stay at home, unless they are essential workers; and

WHEREAS, pursuant to Palm Springs Municipal Code section 2.20.050(a)(6), the Director of Emergency Services is empowered to make and issue rules and regulations on matters reasonably related to the protection of life and property as affected by such emergency; provided, however, such rules and regulations must be confirmed at the earliest practicable time by the City Council; and

WHEREAS, on March 24, the Director of Emergency Services issued an emergency order related to hotels, vacation rentals, and Homesharing, and other short term vacation lodging facilities; and

WHEREAS, the Director of Emergency Services is authorized to revise his emergency declaration and related orders, as the situation evolves.

NOW, THEREFORE, IT IS HEREBY DECLARED AND ORDERED, that:

1. Notwithstanding anything to the contrary in any prior emergency order of the City, unless hotels, vacation rentals, homeshares or other lodging facilities (including timeshares) within the City are being used for COVID-19 mitigation and containment measures, such as housing critical infrastructure workers or those specifically designated by the State or County to house confirmed

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COVID-19 patients, lodging establishments, including hotels, vacation rentals, timeshares and homeshares may not operate within the City.

2. No new reservations shall be accepted until after the COVID-19 emergency declaration within the City has officially ended and these restrictions have been lifted. Any and all bookings through May 31, 2020, other than those for COVID-19 mitigation and containment measures, shall be cancelled immediately. Any guests currently in a lodging facility are directed to return directly home and continue to "shelter in place" in their home community, or remain sheltered in place in the unit.

3. For purposes of this order, "COVID-19 mitigation and containment measures" includes housing for victims or witnesses to domestic violence. Mounting evidence demonstrates that, during this time of increased shelter in place orders, domestic abuse has, and will, increase. At the same time, domestic violence shelters are at greater risk of closing or being under-resourced, and people may not want want to go out in public and risk acquiring COVID-19. As such, the Emergency Services Director has determined that protection of housing for victims and witnesses to domestic violence is necessary for the protection of the public's life and safety.

IT IS FURTHER DECLARED AND ORDERED, that the City's code enforcement or peace officers shall be authorized to enforce this order. Such enforcement shall begin with informing businesses of the requirements of this order. In the event an Essential Business is found in violation of this order, after previously being informed of the requirements of this order, the City may impose administrative fines, pursuant to Palm Springs Municipal Code sections 1.06.040 and 2.20.100 and City Council Resolution 24738, dated March 19, 2020. The citing officer shall be entitled to exercise his/her discretion in determining the amount of any such fine, having taken into consideration the severity of the violation. In addition, continued violations of this order may result in the closure of any facility, or revocation of its permit/certificate.

IT IS FURTHER DECLARED AND ORDERED, this order is a temporary emergency measure, which is effective immediately and shall remain in effect unless and until modified or superseded by the Director of Emergency Services, City Council or any county, state or federal order or declaration.

April 25, 2020

APPROVED AS TO LEGAL FORM:

94?0~

Jeffrey S. Ballinger, City Attorney

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