Whereas the pricing of consumer goods and services is generally
best to be left to market forces, a natural disaster leading to a
declared state of local emergency disrupts local supply chains, in
addition to people's lives and the life of the community, resulting
in market failure and predatory pricing. The public interest thus
requires regulating the market for essential goods and services during
times of emergency, and the city seeks to protect its residents from
excessive and unjustified increases in the prices charged for housing
and other goods and services vital to the health, safety, and welfare
of residents during a local emergency.
(Ord. 444U §2, 2019)
A.
Rental Housing. It is unlawful for any person, business or other entity during a declared emergency within the city to rent, lease, or offer to rent or lease to any existing or prospective tenant any housing unit, of any kind, within the city, at a price 10% above the rental price, as defined in Section 5.46.050. However, a greater increase in rental price is not unlawful if the person, business, or entity can prove that the price increase is directly attributable to additional costs for repairs beyond normal maintenance that were amortized over the rental term, in which case, the price shall not be more than 10% above the total cost of providing the rental unit. It shall not be a defense to a prosecution under this section that an increase in rental price was based on the length of the rental term, the inclusion of additional goods or services (except as provided in Section 5.46.050 for furnished units), or that the rent was offered by, or paid by, an insurance company, or other third party, on behalf of a tenant.
B.
Transient Housing. It is unlawful for any person, business or other entity during a declared emergency to rent or lease a hotel room, motel room, other short-term rental unit, or housing subject to transient occupancy tax per Chapter 3.24, for more than 10% above their 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 rates that are regularly scheduled, or to previously contracted rates.
C.
Sales
of Goods and Services. It is unlawful for any person, contractor,
business, or other entity during the emergency declaration period
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, in the city,
for a price of more than 10% above the price charged by that person
for those goods or services immediately prior to the occurrence of
a declared emergency. 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, provided that in those situations where the
increase in price is attributable to additional costs imposed by the
seller's supplier or additional costs of providing the good or service
during the state of emergency, the price represents no more than 10%
above 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 state of emergency.
(Ord. 440U § 3, 2018; Ord. 444U § 2, 2019)
It shall be unlawful for any person to evict an existing tenant
or terminate an existing lease or month-tomonth rental agreement during
a declared emergency and subsequently rent or lease the same dwelling
unit, including a vacation rental unit, in the city for more than
the average retail price, unless such person can prove that the excess
is directly attributable to additional costs resulting from the labor
or materials necessary to provide the rental. In such instances, only
the actual cost increase may be added to the average retail price.
This section does not prohibit an owner from evicting a tenant for
any lawful reason, including pursuant to Section 1161 of the Code
of Civil Procedure. It shall not be a violation of this section for
a person, business, or other entity to continue an eviction process
that was lawfully begun prior to the proclamation or declaration of
emergency.
(Ord. 440U § 3, 2018)
During a declared emergency, it shall be unlawful for a contractor
to sell or offer to sell any repair or reconstruction services or
any services used in emergency cleanup for a price of more than 10%
above the price charged by that person for those services immediately
prior to the proclamation or declaration of emergency. 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 state of emergency or local emergency, and the price represents
no more than 10% greater than the total of the cost to the contractor
plus the markup customarily applied by the contractor for that good
or service in the usual course of business immediately prior to the
onset of the state of emergency or local emergency. Nothing in this
chapter shall limit, shorten or otherwise affect the provisions of
Penal Code Section 396 applicable to repair or reconstruction services.
(Ord. 440U § 3, 2018)
For the purposes of this chapter, the following terms have the
following meanings:
means the rental price for the dwelling unit during the 30
day period immediately preceding a declared emergency.
means lumber, construction tools, windows, and anything else
used in the building or rebuilding of property.
means any article that is used or intended for use for food,
drink, confection, or condiment by a person or animal.
means a state of emergency or local emergency or declared
disaster by the city, the Governor of California, or the President
of the United States and shall include the longer of the period of
time stated in the declaration of a state of emergency, the declaration
of a local emergency, or such other period of time established by
the city council by ordinance or resolution.
means those general items necessary or convenient to residing
or working in the city for example includes, but is not limited to,
water, flashlights, radios, batteries, candles, blankets, soaps, diapers,
temporary shelters, tape, toiletries, plywood, nails, and hammers.
means any fuel or energy source used to power any motor vehicle
or power tool.
has the same meaning as defined in subdivision (c) of Section
1689.5 of the Civil Code.
means any rental housing, including, but not limited to,
a space rented in a mobile home park or campground.
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.
includes, but is not limited to, prescription and nonprescription
medications, bandages, gauze, isopropyl alcohol, and antibacterial
products.
for housing means any of the following:
For housing rented within one year prior to the declaration
of emergency, including housing rented at the time of the declaration
which becomes vacant while the declaration of emergency remains in
effect, the actual rental price paid by the tenant. For housing not
rented at the time of the declaration, but rented, or offered for
rent, within one year prior to the declaration, the most recent rental
price offered before the declaration of emergency. 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.
For housing not rented and not offered for rent within one year
prior to the declaration of emergency, 160% 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.
Housing advertised, offered, or charged, at a daily rate at
the time of the declaration of emergency, shall be subject to the
rental price described in subparagraph (1), if the housing continues
to be advertised, offered, or charged, at a daily rate. Housing advertised,
offered, or charged, on a daily basis at the time of the declaration
of emergency, shall be subject to the rental price in subparagraph
(2), if the housing is advertised, offered, or charged, on a periodic
lease agreement after the declaration.
means services performed by any person who is required to
be licensed under the Contractors' State License Law (Chapter 9 (commencing
with Section 7000) of Division 3 of the Business and Professions Code),
for repairs to residential or commercial property of any type that
is damaged as a result of a disaster.
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 state of
emergency has been declared by the President of the United States
or the Governor of California. A state of emergency includes a declared
disaster.
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.
(Ord. 440U § 3, 2018; Ord. 444U § 2, 2019)
In addition to any criminal, civil or other legal remedy established by law that may be pursued to address violations of the municipal code, violations of the provisions of this chapter are subject to the administrative penalty provisions of Chapter 1.10.
(Ord. 444U § 2, 2019)
