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12 Staff Report.Rent Utility Forgiveness PREPARED BY: Arn Andrews Assistant Town Manager Reviewed by: Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 04/21/2020 ITEM NO: 12 DATE: April 13, 2020 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Approve the Waiver of Rent and Utilities for the Town of Los Gatos Lessees New Museum of Los Gatos (NUMU), Friends of the Library, Billy Jones Railroad, Soccer and Little Leagues, and Los Gatos-Saratoga Community Education and Recreation (LGS Rec) for the Duration of the Santa Clara County Shelter-in-Place Order Due to Significant Business Disruption RECOMMENDATION: Approve the waiver of rent and utilities for the Town of Los Gatos lessees New Museum of Los Gatos (NUMU), Friends of the Library, Billy Jones Railroad, Soccer and Little Leagues, and Los Gatos-Saratoga Community Education and Recreation (LGS Rec) for the duration of the Santa Clara County shelter-in-place order due to significant business disruption. DISCUSSION: On March 16, 2020, the Health Officer of Santa Clara County issued an Order directing all individuals living in the County to shelter at their place of residence beginning March 17, 2020. Per the County Health Officer, the Order is to ensure that the maximum number of people self - isolate in their places of residence in order to slow the spread of the COVID -19 coronavirus. In addition, the Order identified many business types as non-essential services requiring their complete closure. On March 17, 2020, the Town Council of the Town of Los Gatos ratified and continued a Proclamation of Local Emergency due to the increasing spread of the COVID -19 coronavirus in Santa Clara County. Among other things, a Proclamation of Local Emergency allows jurisdictions to make and issue rules and regulations on matters reasonably related to the protection of life and property as affected by such emergency. PAGE 2 OF 2 SUBJECT: Waiver of Rent and Utilities for Town Lessees DATE: April 13, 2020 DISCUSSION (continued): One result of these public health efforts is the significant business disruption to Town lessees New Museum of Los Gatos (NUMU), Friends of the Library, Billy Jones Railroad, Soccer and Little Leagues, and Los Gatos-Saratoga Community Education and Recreation (LGS Rec). All of these organizations were identified as non-essential businesses and have remained shuttered throughout the shelter-in-place. With the exception of some limited virtual capabilities, the organizations primarily function on revenue derived from paid in-person classroom and sporting activities, book sales, ticketed sales, and/or paid social/fundraising events. CONCLUSION: The waiver of rent and utilities for Town Lessees for the duration of the County mandated shelter-in-place, will help position the organizations to remain viable once they are able to resume normal revenue generating activities. COORDINATION: This staff report was coordinated with the Town Manager, Town Attorney, and Finance Director. FISCAL IMPACT: The waiver of rents and utilities will be absorbed through Town wide budgetary savings. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required.