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7.B. - Page 5 of 17 a business that operated for only six months of 2019 would qualify if its gross receipts were $1,250,000 or less. In the case of a business that began operating after the 2019 calendar year, but before the adoption of the urgency ordinance, the $2,500,000 annual gross receipt figure is similarly prorated. For example, a business that began operating in January 2020 and operated for only three months before adoption of the urgency ordinance would qualify if its gross receipts were $650,000 or less. Prior to evicting a commercial tenant based on nonpayment of rent during the time the moratorium remains in effect, the owner of the commercial property could be required to provide the tenant written notice of the urgency ordinance using a form developed by the City Manager's Office or designee. The commercial tenant would then have at least 14 days, or more if reasonable under the circumstances, to provide the owner evidence of inability to pay rent due to COVID-19. A local measure could be designed to not relieve qualifying commercial tenants of liability for unpaid rent. A commercial tenant, if able, could be required continue to make partial monthly rent payments while the urgency ordinance remains in effect. A Redwood City ordinance could also contain the following components, like the County measure. A commercial tenant could have up to 180 days after the urgency ordinance expires to pay the full amount of rent payments missed as a direct result of COVID-19. Within 90 days after the urgency ordinance expires, the tenant would have to pay the full amount of missed payments, if able to do so. If the tenant is still unable to do so as a direct result of COVID-19, the tenant would then provide the owner of the commercial real property another written notice and additional documentation to extend the payment date an additional 30 days. The tenant may provide additional written notices and documentation every 30 days to further extend the deadline, but under no circumstances would the owner be required to extend the deadline beyond 180 days after the urgency ordinance expires. The owner could not charge or collect a late fee for any missed payment covered by adopted City regulations. In the event of a knowing violation, a commercial tenant could be allowed to file an action seeking injunctive relief, money damages and any other relief the Court deems appropriate, and the prevailing party in that action is entitled to reasonable attorney's fees and costs. In addition, City regulations could provide an affirmative defense to eviction in the event that an action to recover possession is commenced in violation of its terms. Implementation of an urgency ordinance would result in a temporary increased workload for the City Manager's Office (CMO) staff and Code Enforcement as it is expected that small business commercial tenants will contact the City with questions as potential violations are reported. When contacted, City staff would provide information about the urgency ordinance and make referrals to legal resources. It is difficult to assess what this increased workload would mean in relation to previously -planned staff activities: most planned activities for spring 2020 are now on hold in light of COVID-19 response. The City Council may elect to move quickly to pass an ordinance on this issue. Per Government Code section 36937, urgency ordinances take effect immediately. The City Council would be required to declare there is a current and immediate threat to the public peace, health, and safety and to state the facts constituting the urgency. Such an ordinance requires six votes of the City Council. If the Council elects not Page 5 of 6 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 226