CC SR 20200407 03 - Price Gouging
CITY COUNCIL MEETING DATE: 04/07/2020
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA DESCRIPTION:
Consideration and possible action to adoption of an urgency ordinance to enact
prohibitions against emergency price-gouging and a moratorium on residential tenant
evictions related to the COVID-19 pandemic and declared states of emergency
RECOMMENDED COUNCIL ACTION:
(1) Read by title only, waive further reading and adopt Urgency Ordinance No. ___U,
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES, CALIFORNIA, ADDING A NEW CHAPTER 9.36
(EMERGENCY PRICE-GOUGING PROTECTIONS) TO ARTICLE 9 (PUBLIC
PEACE, MORALS AND WELFARE) OF THE RANCHO PALOS VERDES
MUNICIPAL CODE TO ENACT PROHIBITIONS AGAINST EMERGENCY
PRICE-GOUGING AND A MORATORIUM ON RESIDENTIAL TENANT
EVICTIONS RELATED TO THE COVID-19 PANDEMIC AND FUTURE
DECLARED STATES OF EMERGENCY.
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: William W. Wynder, City Attorney
REVIEWED BY: Kit Fox, AICP, Interim Deputy City Manager
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Ordinance No. ___U (page A-1)
B. Resolution No. 2020-11 (page B-1)
BACKGROUND:
The disease caused by novel coronavirus, currently designated COVID-19, was first
detected in Wuhan City, Hubei Province in China in December 2019. Since then, on
January 30, 2020, the World Health Organization (WHO) declared COVID-19 a public
health emergency of international concern.
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On January 31, 2020, the United States Health and Human Services (HHS) Secretary
declared this global outbreak a public health emergency for the United States. The
Centers for Disease Control and Prevention (CDC) announced on February 25, 2020,
that community spread of COVID-19 was likely to occur in the United States.
The State of California proclaimed a State of Emergency on March 4, 2020, and Los
Angeles County declared a Local Health Emergency as well that same day. On March
11, 2020, the WHO characterized COVID-19 as a “pandemic.” On March 12, 2020,
Governor Newsom issued Executive Order N-25-20, declaring that state and local
public health officials may, as they deem necessary in the interest of public health, issue
guidance limiting or recommending limitations upon attendance at public assemblies,
conferences, or other mass events, which could cause the cancellation of such
gatherings through no fault or responsibility of the parties involved, thereby constituting
a force majeure. On March 13, 2020, President Trump Declared a National State of
Emergency. On March 17, 2020, the Rancho Palos Verdes City Council declared a local
emergency with the adoption of Resolution No. 2020-11 (Attachment B).
As of March 26, 2020, the World Health Organization (WHO) reported that there were
almost 417,000 confirmed cases of COVID-19, nearly 19,000 of which resulted in death,
across 196 countries. On March 26, 2020, the California Department of Public Health
(CDPH) reported that California has 2,535 confirmed cases of COVID-19, 53 of which
have resulted in death. The CDC anticipates that widespread transmission of COVID-19
in the United States will occur. As of March 26, 2020, Los Angeles County has reported
799 confirmed cases, including 13 deaths, within the County from COVID-19. Fourteen
cases were confirmed on the Palos Verdes Peninsula and adjacent communities,
including 5 cases in Rancho Palos Verdes.
DISCUSSION:
Due to the rapid spread of the disease, there it the potential for a sharp increase in the
price of household goods, particularly those related to sanitization, paper goods, and
toiletries. California Penal Code §396 prohibits price gouging during times of declared
emergencies and makes such actions misdemeanors with up to 1-year’s imprisonment
and fines of up to $1,000. However, more action is necessary at the local level to deter
price-gouging and protect the community, most particularly its more vulnerable
members.
One of the many effects of the COVID-19 pandemic is increased demands for
consumer good and products that can help people prepare for or protect themselves
from the pandemic, including sanitary face masks, medical supplies, hand sanitizer,
soap, disinfectants, household products, and groceries. Some unsavory individuals
attempt to take advantage of these market demands by offering the in-demand products
for sale at outrageous prices, a practice known as price-gouging.
By way of example, ABC7 News reported on March 5, 2020, that some online sellers
were offering a two-pack of hand sanitizer for $84.99 and face masks at a markup of
582%, and KTLA5 News reported on March 13, 2020, that Los Angeles City authorities
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recently discovered a half-gallon of bleach being sold for over $100 and two one-liter
containers of hand sanitizer being sold online for $149.
Specifically, California Penal Code §396 controls price increases for rental housing,
consumer goods, and services related to emergency response and recovery for an
initial period of thirty days after a declaration of an emergency by the President,
Governor, or local agency, and generally prohibits charging a price that exceeds by
more than ten percent of the price of the rental units, goods or services as such existed
before the declaration of an emergency event.
Penal Code §396 permits a local legislative body to extend the price controls for
additional thirty-day periods as needed to protect the lives, property or welfare of its
citizens. Nothing in Penal Code §396 preempts a city's ability to adopt an ordinance that
prohibits the same or similar conduct and allows a city to impose a more severe penalty
for the conduct prohibited by Penal Code §396. Penal Code §396 applies to hotels,
motels and any other rental housing with an initial lease term of no longer than one
year.
Price gouging can occur during any emergency where the heightened demand for
causes a spike in demand for certain types of products or services, whether such
situation may arise from disease, natural disasters, wildfires, war, or otherwise.
Price gouging is not limited to household goods and can also occur in the context of
rental housing with respect to increased rents. Of concern are those who may not be
able to earn enough wages to pay for the next few months of rent on their homes. This
can have the effect of precluding tenants from finding available housing and can lead to
evictions in the event an existing tenant is faced with a rent increase that he or she
cannot afford to pay.
This concern is especially pertinent in the context of the instant COVID-19 pandemic,
considering the direction from all levels of government and health authorities regarding
maintaining social distancing, avoiding large gatherings, and self-quarantining, much of
which is not possible without a home.
The ordinance recommended in this report (Attachment A) will make it illegal to take
the following actions:
(a) Charge more than ten percent (10%) of the price normally charged by a
seller for such consumer goods, consumer food items, emergency medical
supplies, building materials, and the like during the declaration of a national,
state, or local emergency. Charging more than 10% will be permitted only if the
seller can prove that the increase is directly due to additional costs imposed by a
supplier of the goods or additional labor or materials to provide services.
(b) Increase the residential rental rates of housing by more than ten percent
(10%) to an existing or prospective tenant during the declaration of a national,
state, or local emergency. An increase of more than 10% is permitted when the
landlord can prove the increase is directly due to costs of repairs or additions
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beyond the normal maintenance or that the increase is due to a contract agreed
to by the tenant prior to the declaration of emergency.
(c) Increase hotel or motel rooms by more than ten percent (10%) of its regular
rates for that time of year, as advertised immediately prior to the declaration of a
national, state, or local emergency. An increase of more than 10% is permitted if
the landlord can prove that the increase is due to the additional costs imposed for
goods or labor used in the business, seasonal adjustments in rates, or previously
contracted rates prior to the emergency. It should be noted that this ordinance
has no effect upon the City’s current and on-going prohibition against short-term
rental (STR) units in residential zoning districts.
(d) Evict residential tenants of rental housing, during the 30 days following the
declaration of a national, state, or local emergency, or any period that the
declaration is extended. The prohibition on evictions is not applicable to those
eviction processes that began prior to the declaration of emergency. This is
consistent with Executive Orders N-28-20 issued on March 16, 2020, and N-37-
20 issued on March 27, 2020, by Governor Gavin Newsom.
The penalty for violating the proposed ordinance is a $1,000 fine for the first-time
violation, with $1,000 fines for each additional violation. In addition, the violations are
also punishable as misdemeanors, which carry imprisonment of up to one (1) year and
fines of up to $1,000, per offense.
Government Code §§ 36934 and 36937 authorize the City Council, by a four-fifths vote,
to adopt an urgency ordinance that becomes effective immediately upon its adoption for
the immediate preservation of the public peace, health or safety of the City
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative action is available for
the City Council’s consideration:
1. Do not adopt the recommended urgency ordinance.
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ORDINANCE NO. ___U
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF RANCHO PALOS VERDES, CALIFORNIA,
ADDING A NEW CHAPTER 9.36 (EMERGENCY PRICE-
GOUGING PROTECTIONS) TO ARTICLE 9 (PUBLIC
PEACE, MORALS AND WELFARE) OF THE RANCHO
PALOS VERDES MUNICIPAL CODE TO ENACT
PROHIBITIONS AGAINST EMERGENCY PRICE-
GOUGING AND A MORATORIUM ON RESIDENTIAL
TENANT EVICTIONS RELATED TO THE COVID-19
PANDEMIC AND FUTURE DECLARED STATES OF
EMERGENCY
WHEREAS, Government Code §§ 36934 and 36937 authorize the City Council of
the City of Rancho Palos Verdes (“City Council”), by a four-fifths vote, to adopt an urgency
ordinance that becomes effective immediately upon its adoption by a four-fifths vote of
the entire City Council for the immediate preservation of the public peace, health or safety
of the City; and,
WHEREAS, in December, 2019, an outbreak of respiratory illness due to a novel
coronavirus (COVID-19) was first identified in Wuhan City, Hubei Province, China; and,
WHEREAS, the Centers for Disease Control and Prevention (CDC) considers
COVID-19 to be a very serious public health threat with outcomes ranging from very mild
(including some with no reported symptoms) to severe, including illness resulting in death;
and,
WHEREAS, according to the CDC, there is no vaccine to prevent COVID-19 and
there is no specific antiviral treatment recommended for COVID-19 at this time; and,
WHEREAS, on January 30, 2020, the World Health Organization (WHO) declared
a Public Health Emergency of International Concern over the global spread of COVID-
19; and,
WHEREAS, on January 31, 2020, Health and Human Services (HHS) declared a
Public Health Emergency for the United States to aid the nation’s healthcare community
in responding to COVID-19; and,
WHEREAS, the California Department of Public Health (CDPH) has activated its
Medical and Health Coordination Center, and the Office of Emergency Services recently
activated the State Operations Center to provide support and guide actions to preserve
public health; and,
WHEREAS, on March 4, 2020, Governor Gavin Newsom declared a State of
Emergency for the State of California; and,
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Ordinance No. ___U
Page 2 of 8
WHEREAS, on March 11, 2020, the WHO characterized COVID-19 as a
“pandemic”; and
WHEREAS, on March 12, 2020, Governor Newsom issued Executive Order No.
N-25-20 regarding COVID-19; and,
WHEREAS, on March 13, 2020, President Trump declared a National State of
Emergency in response to increased spread of COVID-19; and,
WHEREAS, in March 17, 2020, the Rancho Palos Verdes City Council adopted
Resolution No. 2020-11 declaring a local emergency in response to COVID-19; and,
WHEREAS, one of the many effects of the COVID-19 pandemic is increased
demands for consumer good and products that can help people prepare for or protect
themselves from the pandemic, including sanitary face masks, medical supplies, hand
sanitizer, soap, disinfectants, household products, and groceries. Some unsavory
individuals attempt to take advantage of these market demands by offering the in-demand
products for sale at outrageous prices, a practice known as price-gouging. By way of
example, ABC7 News reported on March 5, 2020, that some online sellers were offering
a two-pack of hand sanitizer for $84.99 and face masks at a markup of 582%, and KTLA5
News reported on March 13, 2020, that Los Angeles City authorities recently discovered
a half-gallon of bleach being sold for over $100 and two one-liter containers of hand
sanitizer being sold online for $149; and,
WHEREAS, price gouging is not limited to household goods, and can also occur
in the context of rental housing with respect to increased rents. This can have the effect
of precluding tenants from finding available housing and can lead to evictions in the event
an existing tenant is faced with a rent increase that he or she cannot afford to pay. This
concern is especially pertinent in the context of the instant COVID-19 pandemic, in light
of the direction from all levels of government and health authorities regarding maintaining
social distancing, avoiding large gatherings, and self-quarantining, much of which is not
possible without a home; and,
WHEREAS, during an address on March 4, 2020, Governor Gavin Newsom
expressed a need to curb the abuse of price-gouging during the COVID-19 pandemic,
and Attorney General Xavier Becerra issued a price-gouging alert, reminding Californians
of laws prohibiting the practice; and,
WHEREAS, specifically, California Penal Code § 396 controls price increases for
rental housing, consumer goods, and services related to emergency response and
recovery for an initial period of thirty days after a declaration of an emergency by the
President, Governor, or local agency, and generally prohibits charging a price that
exceeds by more than ten percent of the price of the rental units, goods or services as
such existed before the declaration of an emergency event. Penal Code § 396 permits a
local legislative body to extend the price controls for additional thirty-day periods as
needed to protect the lives, property or welfare of its citizens. Nothing in Penal Code §
396 preempts a city's ability to adopt an ordinance that prohibits the same or similar
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Ordinance No. ___U
Page 3 of 8
conduct and allows a city to impose a more severe penalty for the conduct prohibited by
Penal Code § 396. Penal Code § 396 applies to hotels, motels and any other rental
housing with an initial lease term of no longer than one year; and,
WHEREAS, price gouging can occur during any emergency that causes a spike in
demand for certain types of products or services, whether such situation may arise from
disease, natural disasters, wildfires, war, or otherwise; and,
WHEREAS, on March 16, 2020, Governor Gavin Newsom issued Executive Order
N-28-20 prohibiting price gouging and limiting civil evictions of any residential tenant of
residential housing after the proclamation of a state of emergency which provides, in
relevant part, that “[a]ny provision of state law that would preempt or otherwise
restrict a local government's exercise of its police power to impose substantive
limitations on residential or commercial evictions . . . including, but not limited to,
any such provision of Civil Code sections 1940 et seq . or 1954.25 et seq .—is
hereby suspended to the extent that it would preempt or otherwise restrict such
exercise”; and,
WHEREAS, on March 27, 2020, Governor Gavin Newsom issued Executive Order
N-37-20 providing a 60-day extension of Civil Code section 1167 for residential tenants
served with eviction notices for non-payment of rent until at least May 31, 2020, provided
that the tenant provides 7 days’ written notice to the landlords, and that the inability to pay
rent is related to a COVID-19 issue, including personal sickness, or caring for a household
or family member who is sick, with COVID-19; lay-off, loss of hours or other income
reduction related to COVID-19; or missing work to care for a child whose school was
closed in response to COVID-19; and,
WHEREAS, based on the foregoing, the City Council seeks and intends to protect
the residents and guests of the City of Rancho Palos Verdes by enacting protections
against price gouging, not only during the current declared state of emergency related to
the COVID-19 pandemic, but in any future declared state of emergency necessitating
these protections.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, CALIFORNIA, DOES ORDAIN AS FOLLOWS:
Section 1. The foregoing recitals are true and correct and are incorporated
herein by reference as findings of fact.
Section 2. The City Council finds that there is a current and immediate threat to
public health, safety, and welfare posed by COVID-19, and there is an immediate need
for the preservation of public peace, health or safety of the residents and community of
the City. One of the many effects of the COVID-19 pandemic is increased demands for
consumer good and products that can help people prepare for or protect themselves from
the pandemic, including sanitary face masks, medical supplies, hand sanitizer, soap,
disinfectants, household products, and groceries. Some unsavory individuals attempt to
take advantage of these market demands by offering the in-demand products for sale at
outrageous prices, a practice known as price-gouging. By way of example, ABC7 News
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Ordinance No. ___U
Page 4 of 8
reported on March 5, 2020, that some online sellers were offering a two-pack of hand
sanitizer for $84.99 and face masks at a markup of 582%, and KTLA5 News reported on
March 13, 2020, that Los Angeles City authorities recently discovered a half-gallon of
bleach being sold for over $100 and two one-liter containers of hand sanitizer being sold
online for $149. Price gouging is not limited to household goods and can also occur in the
context of rental housing with respect to increased rents. Of concern are those who may
not be able to earn enough wages to pay for the next few months of rent on their homes.
This can have the effect of precluding tenants from finding available housing and can lead
to evictions in the event an existing tenant is faced with a rent increase that he or she
cannot afford to pay. This concern is especially pertinent in the context of the instant
COVID-19 pandemic, considering the direction from all levels of government and health
authorities regarding maintaining social distancing, avoiding large gatherings, and self-
quarantining, much of which is not possible without a home .
Section 3. A new Chapter 9.36 (Emergency Price-Gouging Protections) is
hereby added to Article 9 (Public Peace, Morals and Welfare) of the Rancho Palos Verdes
Municipal Code, to read in its entirety as follows:
“CHAPTER 9.36 – EMERGENCY PRICE-GOUGING PROTECTIONS
9.36.010. Purpose.
The purpose of this chapter is to establish protections against price gouging
in certain goods and services, rental housing, transient housing, and
residential evictions during a declared emergency, as may be proclaimed
by the City Manager and/or City Council from time to time pursuant to
Chapter 2.24 of this Code.
9.36.020 Definitions.
1. “Building materials” means lumber, construction tools, windows, and
anything else used in the building or rebuilding of property.
2. “Consumer food item” means any article that is used or intended for use
for food, drink, confection, or condiment by a person or animal.
3. "Declared Emergency" means a state of emergency or local emergency.
4. "Emergency Declaration Period" means the longer of the period of time
stated in the declaration of a state of emergency, or the declaration of a
local emergency or such other period of time established by the City Council
by ordinance.
5. “Emergency supplies” includes, but is not limited to, water, flashlights,
radios, batteries, candles, blankets, soaps, diapers, temporary shelters,
tape, toiletries, plywood, nails, and hammers.
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Ordinance No. ___U
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6. “Gasoline” means any fuel used to power any motor vehicle or power
tool.
7. “Goods” has the same meaning as defined in subdivision (c) of Section
1689.5 of the Civil Code.
8. "Housing" means any rental housing with an initial lease term of no
longer than one year.
9. "Local Emergency" means a natural or manmade emergency resulting
from an earthquake, flood, fire, riot, storm, drought, plant or animal
infestation or disease, or other natural or manmade disaster for which a
local emergency has been declared by the City Council or City official
vested with such authority to make such declaration.
10. “Medical supplies” includes, but is not limited to, prescription and
nonprescription medications, bandages, gauze, isopropyl alcohol, and
antibacterial products.
11. "Rental Price" for housing means any of the following:
A. For housing rented within one-year prior to the time of the
proclamation or declaration of emergency, the actual rental price paid by
the tenant. For housing not rented at the time of the declaration or
proclamation, but rented, or offered for rent, within one-year prior to the
proclamation or declaration of emergency, the most recent Rental Price
offered before the proclamation or declaration of emergency. For housing
rented at the time of the proclamation or declaration of emergency but which
becomes vacant while the proclamation or declaration of emergency
remains in effect, the actual rental price paid by the previous tenant or the
amount specified in subparagraph B of this definition, whichever is greater.
This amount may be increased by five percent if the housing was previously
rented or offered for rent unfurnished, and it is now being offered for rent
fully furnished. This amount shall not be adjusted for any other good or
service, including, but not limited to, gardening or utilities currently or
formerly provided in connection with the lease.
B. For housing not rented and not offered for rent within one-year prior
to the proclamation or declaration of emergency, one hundred sixty percent
of the fair market rent established by the United States Department of
Housing and Urban Development. This amount may be increased by five
percent if the housing is offered for rent fully furnished. This amount shall
not be adjusted for any other good or service, including, but not limited to,
gardening or utilities currently or formerly provided in connection with the
lease.
12. "State of Emergency" means a natural or manmade emergency
resulting from an earthquake, flood, fire, riot, storm, drought, plant or animal
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infestation or disease, or other natural or manmade disaster for which a
state of emergency has been declared by the President of the United States
or the Governor.
13. “Transportation, freight, and storage services” means any service that is
performed by any company that contracts to move, store, or transport
personal or business property or that rents equipment for those purposes,
including towing services.
9.36.030. Prohibitions on Price Gouging.
A. Consumer Goods. It is unlawful for a person, contractor, business, or
other entity to sell or offer to sell any consumer food items or goods, goods
or services used for emergency cleanup, emergency supplies, medical
supplies, home heating oil, building materials, housing, transportation,
freight, and storage services, or gasoline or other motor fuels for a price of
more than ten percent greater than the price charged by that person for
those goods or services immediately prior to the emergency declaration
period. However, a greater price increase is not unlawful if that person can
prove that the increase in price was directly attributable to additional costs
imposed on it by the supplier of the goods, or directly attributable to
additional costs for labor or materials used to provide the services, during
the emergency declaration period, and the price is no more than ten percent
greater than the total of the cost to the seller plus the markup customarily
applied by the seller for that good or service in the usual course of business
immediately prior to the onset of the emergency declaration period.
B. Rental Housing. It is unlawful for any person, business or other entity,
during an emergency declaration period, to increase the rental price,
advertised, offered, or charged for housing, to an existing or prospective
tenant, by more than ten percent. However, a greater rental price increase
is not unlawful if that person can prove that the increase is directly
attributable to additional costs for repairs or additions beyond normal
maintenance that were amortized over the rental term that caused the rent
to be increased greater than ten percent or that an increase was
contractually agreed to by the tenant prior to the proclamation or
declaration.
C. Transient Housing. It is unlawful for any person, business or other entity
during the emergency declaration period to rent or lease a hotel or motel
room, or other long-term rental unit, in the City of Rancho Palos Verdes, for
more than ten percent above the hotel, motel or other long-term rental's
regular rates, as advertised immediately prior to the occurrence of a
declared emergency, unless that person, business or other entity can prove
that the increase in price is directly attributable to additional costs imposed
on it for goods or labor used in the business, to seasonal adjustments in
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rates that are regularly scheduled, or to previously contracted rates prior to
the proclamation or declaration.
9.36.040. Restrictions on Evictions.
A. It shall be unlawful for any person, business, or other entity to evict any
residential tenant of residential housing after the proclamation of a state of
emergency declared by the President of the United States or the Governor,
or upon the declaration of a local emergency by the City Council or other
City official vested with authority to make that declaration, and for a period
of thirty days following that proclamation or declaration, or any period that
the proclamation or declaration is extended by the applicable authority.
B. It shall also be unlawful to rent or offer to rent to another person at a
rental price greater than any lawfully evicted tenant could be charged prior
to the proclamation of a state of emergency declared by the President of
the United States or the Governor, or upon the declaration of a local
emergency by the City Council or other City official vested with authority to
make that declaration.
C. It shall not be a violation of this section for a person, business, or other
entity to evict a tenant pursuant to Section 1161 of the California Code of
Civil Procedure or to continue an eviction process that was lawfully begun
prior to the proclamation of a state of emergency declared by the President
of the United States or the Governor, or upon the declaration of a local
emergency by the City Council or other City official vested with authority to
make that declaration.
9.36.050 Penalties for Violations.
Any person violating the provisions of this chapter shall be subject to a
penalty of $1,000 for a first-time violation, and thereafter $1,000 for each
additional violation of such provisions. A violation of this Chapter is also
punishable as a misdemeanor.”
Section 4. This Urgency Ordinance shall go into effect immediately upon its
adoption by at least a four-fifths vote of the City Council pursuant to Government Code
§§ 36934 and 36937. The City Council finds and determines that the same is necessary
to the preservation of the public peace, health or safety, in that adoption of the same will
help prevent price gouging during declared states of emergency.
Section 5. If any section, subsection, sentence, clause, phrase, or portion of this
Ordinance, or the application thereof to any person or circumstances, is, for any reason,
held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the application of any other section, subsection,
sentence, clause, phrase, or portion of this Ordinance, and to this end the invalid or
unconstitutional section, subsection, sentence, clause, phrase of this ordinance are
declared to be severable. The Rancho Palos Verdes City Council hereby declares that it
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would have adopted this ordinance and each section, subsection, sentence, clause,
phrase, part or portion thereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses, phrases, parts or portions thereof be declared invalid or
unconstitutional.
Section 6. The City Clerk shall certify to the adoption of this Ordinance and shall
cause the same to be posted and codified in the manner required by law.
PASSED, APPROVED and ADOPTED this 7th day of April 2020, by a four-fifths
vote of the entire City Council.
________________________________
John Cruikshank, Mayor
ATTEST:
_______________________________
Emily Colborn, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF RANCHO PALOS VERDES )
I, Emily Colborn, City Clerk of the City of Rancho Palos Verdes, do hereby certify
that the whole numbers of the City Council of said City is five; that the foregoing Ordinance
No. ___U was duly and regularly adopted by the City Council of said City at a regular
meeting thereof held on April 7, 2020, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
__________________________
Emily Colborn, City Clerk
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01203.0001/636842.2
RESOLUTION NO. 2020-11
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES, DECLARING AND
PROCLAIMING A LOCAL EMERGENCY IN RESPONSE TO
COVID-19
WHEREAS, in December, 2019, an outbreak of respiratory illness due to a novel
coronavirus (COVID-19) was first identified in Wuhan City, Hubei, Province, China; and,
WHEREAS, the Center for Disease Control and Prevention (CDC) considers
COVID-19 to be a very serious public health threat with outcomes ranging from very mild
(including some with no reported symptoms) to severe, including illness resulting in death;
and,
WHEREAS, according to the CDC, there is no vaccine to prevent COVID-19 and
there is no specific antiviral treatment recommended for COVID-19 at this time; and,
WHEREAS, on January 30, 2020, the World Health Organization (WHO) declared
a Public Health Emergency of International Concern over the global spread of the novel
coronavirus (COVID-19); and,
WHEREAS, on January 31, 2020, Health and Human Services (HHS) Secretary
Alex M. Azar II declared a Public Health Emergency for the United States to aid the
nation’s healthcare community in responding to COVID-19; and,
WHEREAS, the California Department of Public Health has activated its Medical
and Health Coordination Center, and the Office of Emergency Services recently activated
the State Operations Center to provide support and guide actions to preserve public
health; and,
WHEREAS, on March 4, 2020, Governor Gavin Newsom declared a State of
Emergency for the State of California; and,
WHEREAS, on March 4, 2020, the County of Los Angeles declared a Local Health
Emergency in response to increased spread of COVID-19; and,
WHEREAS, on March 11, 2020, the WHO characterized COVID-19 as a
“pandemic”; and,
WHEREAS, on March 12, 2020, Governor Newsom issued Executive Order N-25-
20 regarding COVID-19; and,
WHEREAS, on March 13, 2020, President Trump declared a National State of
Emergency in response to increased spread of COVID-19; and,
B-1
01203.0001/636842.2
WHEREAS, there is one suspected (but as-yet-unconfirmed) case of COVID-19
on the Palos Verdes Peninsula, COVID-19 is easily transmissible from person to person
and, as of March 15, 2020, has spread globally to over 146 countries and territories, has
infected more than 153,000 individuals and killed more than 5,700 individuals per the
WHO; and,
WHEREAS, it is imperative to prepare for and respond to suspected or confirmed
COVID-19 cases within the City, and to prepare to respond to an increasing number or
individuals who may require medical care; and,
WHEREAS, strict compliance with certain Municipal Code and other City
regulations would prevent, hinder, or delay appropriate actions to prevent and mitigate
the effects of the COVID-19, which issue cannot be timely addressed absent a declaration
of emergency; and,
WHEREAS, per Government Code §8630 a declaration of a local emergency shall
not remain in effect for a period in excess of seven days unless it has been ratified by the
City Council; and,
WHEREAS, Section 2.24.050 of the Rancho Palos Verdes Municipal Code
appoints the City Manager as Director of Emergency Services, and empowers the
Director request the City Council to proclaim the existence or threatened existence of a
local emergency if the City Council is in session, or to issue such proclamation if the City
Council is not in session; and,
WHEREAS, on March 14, 2020, the City Manager activated the City’s Emergency
Operations Center (EOC) at Level 3, the lowest level of activation; and,
WHEREAS, out of an abundance of caution to protect the health, safety, and
welfare of the community, the Director of Emergency Services requested the City Council
to proclaim a local emergency due to the public health threat caused by COVID-19.
WHEREAS, during the existence of the local emergency, and along with all State
and County first response resources, all City first response resources, vehicles, and
services shall be given first priority from shopkeepers and businesses located within the
City, including, but not limited to, water, fuel and gasoline
NOW, THEREFORE, THE RANCHO PALOS VERDES CITY COUNCIL HEREBY
RESOLVES, AS FOLLOWS:
SECTION 1. The conditions of extreme peril to the safety of persons and property
have arisen within the City of Rancho Palos Verdes, caused by the effects of COVID-19.
SECTION 2. The aforementioned conditions of extreme peril warrant and
necessitate the proclamation of the existence of a local emergency by the City, as the
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means to resolve the conditions of extreme peril will probably exceed the capability of the
City.
SECTION 3. The City Council does hereby declare and proclaim the existence of
a local emergency.
SECTION 4. During the existence of such local emergency, the powers, functions,
and duties of the City Manager as Director of Emergency Services and the Disaster Council
of this City shall be those prescribed by State Law, Chapter 2.24 of the Rancho Palos
Verdes Municipal Code, and ordinances and resolutions of this City, and approved plans
of the City in order to mitigate the effects of the local emergency.
SECTION 5. In addition to the powers, functions, and duties already prescribed
above, the Council desires to make clear the powers, functions, and duties include:
(a) As necessary for the public health, life, and property, entering into contracts
to arrange for the procurement of materials, goods, and services needed to assist in
preparing for, containing, responding to, mitigating the effects of, and recovering from the
spread of COVID-19.
(b) Applicable provisions of the Government Code and the Public Contract
Code, including but not limited to travel, advertising, and competitive bidding requirements,
as well as any City procurement or related policy, are suspended to the extent reasonably
necessary to address the effects of COVID-19.
(c) The Emergency Services Director is expressly authorized to assist with any
lawful order, including the enforcement of an order of quarantine or curfew, as well as
ordering potentially ill City employees to leave the workplace, authorizing certain City
employees to work remotely, taking steps to limit non-essential contact by City employees,
etc., to address the effects of COVID-19.
(d) The Emergency Services Director is expressly authorized at his or her
discretion to invoke force majeure clause on any City agreements or obligations, to the
extent reasonably necessary to address the effects of COVID-19.”
SECTION 6. The local emergency shall be deemed to continue to exist until its
termination is proclaimed by the City Council.
SECTION 7. The Government Code § 8630 requirement that the Council review
of the need for continuing the local emergency at least once every 60 days until the City
Council terminates the local emergency has been waived for the duration of the statewide
emergency declared by Governor Newsom. In the event this declaration of local
emergency extends for more than the duration of the statewide emergency declared for
COVID-19, City Staff are directed to thereafter return this item for Council review of the
need for continuing the local emergency at least once every 60 days until the City Council
terminates the local emergency.
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SECTION 8. This Resolution shall take effect immediately. A copy of this
Resolution shall be forwarded to the Los Angeles County Operational Area for transmission
to California Emergency Management Agency.
SECTION 9. The City Clerk shall certify to the passage and adoption of this
resolution.
PASSED, APPROVED and ADOPTED on this 17th day of March 2020.
/s/ John Cruikshank
Mayor
Attest:
/s/ Emily Colborn
Emily Colborn, City Clerk
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, Emily Colborn, City Clerk of the City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2020-11 was duly and regularly passed and adopted by the said
City Council at a regular meeting thereof held on March 17, 2020.
/s/ Emily Colborn
City Clerk
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