November 7, 2023
PROPOSED TENANT
PROTECTION ORDINANCE
2 BACKGROUND –
TENANT PROTECTION ACT (AB-1482)
• October 8, 2019 – Assembly Bill 1482 (AB-1482) was signed into law, prohibiting owners of residential real property from evicting a tenant without just cause when said tenant has occupied the housing unit for at least 12 consecutive months. The Bill further defines two (2) types of just cause evictions:
At-Fault
A. Failure to pay rent
B. Breach of a material term of the lease
C. Allowing or causing a nuisance
D. Committing waste
E. Failure to extend lease upon expiration
F. Criminal activity
G. Subletting in violation of the lease
H. Failure to allow the owner to enter the property
I. Using the property for an unlawful purpose
J. An employee/agent fails to vacate upon being
terminated
K. Failure of tenant to surrender the property after
providing written notice of intent to surrender
No-Fault
A. Intent to occupy the property by the owner or
an immediate family member
B. Withdrawal of the property from the rental
market
C. Complying with an order from a government
agency, court, or ordinance
D. Intent to demolish
E. Intent to substantially rehabilitate the property,
which requires:
i. Replacement or substantial modification of
a major system that requires a permit
ii. Cannot be completed with tenant in place
iii. Tenant must vacate for more than 30 days
3 BACKGROUND –
HOMELESSNESS PREVENTION ACT (SB-567)
• September 30, 2023 – Senate Bill 567 (SB-567) signed into law, amending AB- 1482 to place additional requirements on owners issuing no-fault just cause evictions and prescribing new enforcement mechanisms. Salient provisions include:
• Intent to demolish or substantially rehabilitate – The owner must provide written notice to the tenant including:
• Intent to demolish or substantially rehabilitate
• Description of the substantial rehabilitation to be completed • Approximate estimated duration of the substantial rehabilitation or the expected date the property is to be demolished
• A copy of the permit or permits required to undertake the substantial rehabilitation or demolition.
• Intent to occupy – The owner or authorized family member must move in within 90 days of the tenant vacating and must occupy the unit for a period of 12 consecutive months
• Enforcement - An owner who issues a notice of eviction in violation of AB-1482 and/or SB-567 is liable to the tenant in a civil action for damages of up to 3 times the actual damages, in addition to punitive damages.
4 BACKGROUND –
AB-1482 & SB-567
• Both AB-1482 and SB-567 require owners who issue a no-fault just cause eviction to provide written notice informing the tenant of their right to relocation assistance, which includes either of the following:
1. Waiver of the final month’s rent; or
2. Direct payment to the tenant equal to one month’s rent • Payments must be made within 15 days of issuing notice to vacate • Failure of an owner to comply with any of the provisions of AB-1482 or SB-567 renders void a notice to vacate.
5 PROPOSED TENANT PROTECTION ORDINANCE
• The goal of the proposed Tenant Protection Ordinance (TPO) is to ensure Costa Mesa residents aren’t being evicted into homelessness. • The proposed TPO is identical to the provisions of AB-1482 as amended by SB-567, with three exceptions:
1. Immediate Implementation – The Ordinance goes into effect 30 days after Council approval.
2. Notification to the City - The Ordinance requires owners to notify the City within three (3) business days of giving notice to their tenant.
2. Increased Relocation Assistance - The Ordinance requires owners to pay tenants being issued a no-fault just cause eviction relocation benefits equal to two (2) months of Fair Market Rent (FMR) or waive the tenant’s rent for two (2) months and pay the difference if FMR is greater.
Zip Code Studio One-Bedroom Two-Bedroom Three-Bedroom
92626 $4,960 $5,280 $6,280 $8,500
92627 $4,240 $4,520 $5,360 $7,260
6 EXEMPTIONS TO AB-1482 & SB-567
• The following types of residential real properties or residential circumstances are exempt from the provisions of AB-1482 & SB-567:
1) Transient and tourist hotel occupancy
2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, or an adult residential facility
3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school.
4) Housing accommodations in which the tenant shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential real property.
5) Single-family owner-occupied residences
6) An owner-occupied duplex
7 EXEMPTIONS TO AB-1482 & SB-567 (continued)
• The following types of residential real properties or residential circumstances are exempt from the provisions of AB-1482 & SB-567:
7) Housing that has been issued a certificate of occupancy within the previous 15 years, unless the housing is a mobile home.
8) Residential real property (i.e. single-family dwelling, condominium, or townhouse), including a mobile home, that is alienable separate from the title to any other dwelling unit, provided the owner is not: 1) A real estate investment trust, 2) A corporation, 3) A limited liability company in which at least one member is a corporation, or 4) Management of a mobile home park; and
the tenant has been provided written notice that the residential property is exempt.
9) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate- income or subject to an agreement that provides housing subsidies for affordable housing.
8 COSTA MESA EVICTION DATA
• In the past four months (July ‘23 through October ‘23), the City has received correspondence from 67 households being evicted from their homes • Between July 1, 2023, and October 16, 2023, the City received correspondence from 41 households facing no-fault just cause eviction. • In the nine days to follow, between October 17-26, 2023, the City received correspondence from an additional 22 households (79 individuals) with the vast majority facing no-fault eviction.
• On October 27, 2023, the City received correspondence from Pomona Elementary regarding four (4) families (5 adults and 11 children) experiencing homelessness, two of which had been issued a no-fault eviction. • The City is currently supporting nine (9) families with services including motel vouchers, meals, and connection to additional resources. Five (5) of the families (8 adults and 15 children) were issued a no-fault eviction and the remaining four (4) families (6 adults and 11 children) were evicted for unknown reasons. • Every instance of no-fault eviction from a multi-family apartment complex has included reports of households vacating immediately without receiving support or financial assistance, even when the notice they received was invalid. 9 PROCEDURAL OVERVIEW
1. A no-fault just cause eviction notice is received by an Outreach Worker (OW) in the Neighborhood Improvement Division
2. OW assesses the notice for compliance with State law. If OW is unable to determine compliance, the notice is forwarded to Development Services for review and final determination.
a. Out of compliance – OW contacts the property owner to provide guidance on State law and to achieve voluntary compliance in updating or rescinding the notice. i. Owner brings notice into compliance and reissues to tenant, rendering the original notice void and restarting the 60-day window to vacate
ii. Owner determines there is no lawful justification for eviction, rendering notice void iii. Owner refuses to comply with State law and the case is forwarded to Community Legal Aid or the City Attorney, as appropriate
b. In compliance – OW contacts the tenant to offer voluntary services, including:
• Crisis intervention and support, housing navigation, eligibility screening, and connection to additional City resources (i.e. benefits and rental assistance)
3. Cases requiring additional monitoring to ensure compliance with State law are forwarded to the Code Enforcement Division
10 STAFFING & FUNDING OVERVIEW
1. One (1) full-time Community Outreach Worker to provide support to landlords and tenants. One (1) additional Outreach Worker depending on caseload and at the City Manager’s discretion.
2. One (1) full-time Senior Planner to assist in assessing notices including permits.
3. One (1) full-time Code Enforcement Officer II to provide on-site property monitoring and/or evaluation of notices.
4. Additional funding of $250,000 in American Rescue Plan Act funds to the City Attorney’s Office to ensure compliance with State law and the Ordinance.
5. $300,000 in American Rescue Plan Act funds to currently authorized providers for the provision of supplemental rental assistance to households experiencing and at risk of homelessness.
11 URGENCY ORDINANCE
• Given the urgent crisis at hand and the immediate danger to Costa Mesa families and children, many of whom are minors, staff has included the option for the City Council to adopt an Urgency Ordinance.
• The City Attorney’s Office has attached a draft Urgency Ordinance that can be adopted to provide more immediate relief to families and individuals in need.
• The benefit of an Urgency Ordinance is it allows for the expeditious implementation of State law and services needed to protect Costa Mesa residents from being evicted into homelessness.
12 RECOMMENDATIONS
1. Introduce and give first reading, waiving further reading, to Ordinance No. 2023-XX Amending Title 9 (Licenses and Business Regulations) of the Costa Mesa Municipal Code by Adding Chapter II (Regulation of Certain Businesses), Article 24 (Just Cause Residential Tenant Protections) or adopt Ordinance No. 2023-XX, an Urgency Ordinance Amending Title 9 (Licenses and Business Regulations) of the Costa Mesa Municipal Code by Adding Chapter II (Regulation of Certain Businesses), Article 24 (Just Cause Residential Tenant Protections).
2. Appropriate a total of $300,000 from uncommitted American Rescue Plan Act funds to provide supplemental rental assistance to households facing no-fault just cause eviction, and authorize the City Manager, City Attorney, and City Clerk to approve and execute new or amended agreements with existing program providers.
3. Allocate $250,000 from uncommitted American Rescue Plan Act funds to the Law Offices of Jones Mayer, increasing the scope of the contract to include eviction and rental-related legal services, including but not limited to court filings, to enforce the eviction protection provisions of the Costa Mesa Municipal Code regarding unlawful acts in connection with no-fault just cause evictions.
4. Approve the addition of three (3) Full Time Equivalent (FTE) staff positions to implement, monitor, and enforce the subject Ordinance, with an additional FTE at the discretion of the City Manager. The staff positions include one Community Outreach Worker in the Neighborhood Improvement Division, one (1) Senior Planner, and one (1) Code Enforcement Officer II in the Economic and Development Services Department. Appropriation authority is requested at an estimated $300,000 for the remainder of the fiscal year from uncommitted American Rescue Plan Act funds to cover the fiscal impact of the additional positions.
13 QUESTIONS?
THE LIONS PARK PROJECTS
LIONS PARK CAFÉ BUILDING
City Council Meeting
November 7, 2023
Public Works Department
2 PROJECT BACKGROUND
• The Donald Dungan Library and the Norma Hertzog Community Center (NHCC) projects were completed in May 2019 and
November 2020, respectively.
• The construction of a new Lions Park Café was deferred to a future phase, pending funding availability.
• In 2022, County of Orange Supervisor Katrina Foley earmarked $1.2 million from County American Rescue Plan Act (ARPA) funds to the City for the construction of the Café.
v v
CONSTRUCTION OF THE DONALD DUNGAN LIBRARY
COMPLETED MAY 2019
BEFORE AFTER
v v
CONSTRUCTION OF THE NORMA HERTZOG COMMUNITY CENTER
COMPLETED NOVEMBER 2020
BEFORE AFTER
v v
PROPOSED LIONS PARK CAFÉ
CONCEPTUAL RENDERING
LIONS PARK CAFÉ PROJECT
• Approximately 1,000 square feet
• Food service concession counter
• Food storage and service area
• Food preparation area
• Equipment and washing area
• Restroom
• Electrical Room
• Storage Room
7 PROJECT TEAM
• The Donald Dungan Library and the Norma Hertzog Community Center (NHCC) projects were implemented by following
consultants/contractor:
Johnson Favaro (Designer)
STV Construction, Inc. (Construction Management)
Tovey/Shultz Construction, Inc. (Contractor)
• Staff recommends maintaining the same team to ensure seamless implementation of the project.
• Amendments to Professional Service Agreements with Johnson Favaro and STV, and Public Works Agreement with Tovey/Shultz are needed to implement the project.
JOHNSON FAVARO –
ARCHITECTURE AND ENGINEERING
Original PSA: $2,991,287
Amendments to date: $18,066
This request (Café): $130,250 with 3-year extension
• Update plans to meet new 2022 California Building Code (CBC) • Obtain Orange County Health Department Permit
• Respond to requests for information
• Review submittals
• Review changes in scope due to material availability and site constraints
• Conduct construction site visits
STV CONSTRUCTION, INC. –
CONSTRUCTION MANAGEMENT SERVICES
Original PSA: $2,894,056
Amendments to date: $90,000
This request (Café): $226,960 with 3-year extension
• Inspections to ensure contract compliance with plans and specifications • Coordination with utility agencies and site stakeholders • Change order review and recommendation
• On-site project coordination
• Document control
• Quality control management
• Building commissioning
TOVEY/SHULTZ CONSTRUCTION, INC. –
GENERAL CONTRACTOR
Original PSA: $28,739,822
Amendments to date: $209,562
This request (Café): $1,929,805
• Construction labor
• Building materials
• Construction equipment
• Kitchen equipment
• Utility construction
QUESTIONS
City Council Meeting
November 7, 2023
Council direction re: a potential moratorium
or other alternative procedure to discontinue
or suspend processing of cannabis retail
applications
2 Background
• On November 3, 2020, Costa Mesa voters approved Measure Q, The Costa Mesa Retail Cannabis Tax and Regulation
Measure.
• On June 15, 2021, the City adopted ordinances establishing minimum standards and permitting requirements.
• On September 5, 2023 City Council voted 7-0 to direct staff to work with the Planning Commission to consider and make
recommendations re: potential changes to the cannabis
ordinances.
3 Current Request
• At the October 3, 2023 City Council meeting, a
councilmember requested that an item be agendized to
discuss a possible moratorium to temporarily suspend
cannabis retail application processing while staff completes its work regarding potential amendments to the City’s retail cannabis regulations.
4 Potential Moratorium
• Government Code Section 65858 establishes the authority for urgency measure interim ordinances (moratoria).
• Requires a four-fifths vote for approval and certain findings to be made.
• If approved, it would be effective for 45 days, with the possibility of additional extensions subject to a four-fifths vote for approval.
5 Potential Moratorium
• Government Code section 65858(c) to approve a
moratorium, the City Council must find that:
“There is a current and immediate threat to the public health, safety, or welfare, and that the approval of additional subdivisions, use permits, variances, building permits, or any other applicable entitlement for use which is required in order to comply with a zoning ordinance would result in that threat to public health, safety, or welfare.” 6 Potential Alternative
• CMMC Section 9-486(d) states the “city council may by resolution limit and/or restrict the number of cannabis retail ordinances available for issuance and/or renewal”.
• The adoption of a Resolution requires a majority vote of the quorum of the City Council.
7 Cannabis Storefront Application Process
Pre-
Application &
Waitlist
Cannabis
Business
Permit
Application
Conditional
Use Permit
Building
Permits
&
Inspections
Cannabis
Business
Permit &
Business
License
Issued
Location
Verification
Site Visit
Pre-application
Determination
Letter Issued
Business Plan
Security Plan
Background
Checks
Notice to
Proceed to
submit a CUP
application
Evaluate
site/use
Staff Report/
Conditions
Public Notice
Planning
Commission
Plan Check
Conditions of
Approval
Compliance
Final
Inspections
Defense &
Indemnity
Insurance
Meeting with
Finance Dept.
2 Year Renewal
8 Cannabis Storefront Application Status
Pre-Applications &
Waitlist
Cannabis
Business Permit
Applications
Submitted
Conditional Use
Permit
Applications
Building Permit Plan
Check Under Review
Cannabis Business
Permit &
Business License
Issued
15 pre-applications
&
2 waitlist remaining
No Pre-Application
Determination Letter
has been issued
4 applications
remaining
No Notice to
Proceed has been
issued
10 applications
in the queue
(22 approved)
9 operating
Building Permits
Issued
22 CUPs Approved
3 locations under
construction
8 applications
2 not yet submitted
Complete inspections
9 Cannabis Businesses Operating
• 1990 Harbor Blvd (420 Central) – Issued November 22, 2022 • 2801 Harbor Blvd (Off The Charts) – Issued May 8, 2023 • 2710 Harbor Blvd (Stiiizy) – Issued May 10, 2023
• 2275 Newport Blvd (Nectar) – Issued June 16, 2023
• 1854 Newport Blvd (Mr. Nice Guy) – Issued June 29, 2023 • 2664 Newport Blvd (Secret Garden) – Issued July 12, 2023 • 170 East 17th Street (Catalyst) – Issued July 20, 2023 • 2845 Harbor Blvd (Mr. Nice Guy) – Issued September 8, 2023 • 2001 Harbor Blvd (SCSA) – Issued October 23, 2023
10 Retail Cannabis Storefronts
11 Recommendation
• Staff recommends the City Council provide direction
regarding the potential preparation of a moratorium and/or resolution to discontinue or suspend acceptance and
processing of cannabis retail applications.
City Council Meeting
November 7, 2023
Council direction re: a potential moratorium
or other alternative procedure to discontinue
or suspend processing of cannabis retail
applications
13 Background
The City Council directed staff to compile information and prepare recommendations related to the following:
• Establishing a minimum separation between cannabis storefronts • Increasing the minimum separation between cannabis storefronts and youth centers, as defined in the CMMC, from 600 feet to 1,000 feet to be consistent with other sensitive use separations
• Allowing the word “cannabis” on signage in the City
• Establishing a minimum separation between residential zoning districts and cannabis storefronts
• Adding limitations to prohibit the marketing of cannabis and cannabis products to youth
• Establishing a maximum number of retail cannabis businesses • Establishing bona fide labor peace agreement requirements for cannabis storefronts • Consider establishing provisions for notification and relocation fees for existing businesses that would be displaced by retail cannabis uses. 14 Retail Cannabis Storefront Applications
15 Retail Cannabis Storefront Applications
16 Retail Cannabis Storefront Applications
17 Retail Cannabis Storefront Applications