[0:01] Mayor, you can start the meeting.

[0:05] Thank you.

[0:08] Good evening.

[0:12] Territory residents and the member of our community. At this time, I will call the order, the Thursday, April 23,

[0:21] City Council and the successor agency regular meeting on month.

[0:25] Sorry, this is April 23, why this is 20.

[0:29] Twenty-thirds.

[0:31] This evening, the invocation will be led by City Clerk.

[0:34] the pleasure we double on.

[0:36] Adam City Clerk.

[0:37] Thank you, Mr. Mayor.

[0:39] This meeting will also contain an item from the adjourned regular meeting from Monday, April 20th.

[0:46] Okay, that's good.

[0:48] Let us pray.

[0:50] We hope in this time of difficulty that we find the peace in our community and within ourselves and within our families to keep us going and see the light at the end of the tunnel.

[1:03] Amen.

[1:07] Thank you. It is time for please join me on a pledge of allegiance.

[1:17] I pledge allegiance

[1:17] to the flag of the United States of America, into the Republic for which it stands,

[1:23] one nation, under guard, indivisible liberty and justice for all. Thank you.

[1:32] Madam City Clerk, will you please conduct the roll call?

[1:37] Thank you, Mayor.

[1:40] At this time, I would like to conduct an oral roll call and request that each council member

[1:44] respond with present when their name is called.

[1:47] Council and Agency Member Edwards, it will be absent for the meeting as this time we will

[1:52] entertain a motion to excuse.

[1:56] I'm at the motion.

[1:57] So second.

[1:59] A motion has been made by Councilmember Salonke and second by Councilmember Who, Rokal Who.

[2:09] I, Salonke.

[2:11] I.

[2:13] Go.

[2:16] Yoko Yama.

[2:18] Here.

[2:21] This vote is to excuse Councilmember Edwards from the meeting.

[2:32] Mr. Councilmember Yoko Yama.

[2:38] motion passes for a. This will conclude the roll call with four council members present.

[2:46] Thank you.

[2:48] We will now to move to the public comments. I would like to remind all the public speaker

[2:53] to use respectful language and behavior during public comments. We value your inputs

[2:58] but the city council does not allow or support the use of profanity or hateful speech in our meeting.

[3:05] Public speakers should direct their comments to the City Council.

[3:09] Madam City Clerk, can you please provide information regarding the public comments?

[3:15] Thank you, Mr. Mayor.

[3:18] In compliance with the Brown Act, public comments will be taken at this time on consent calendar items and items not listed on tonight's agenda.

[3:25] There will be a separate public comment period later in the meeting for items listed on tonight's agenda.

[3:30] In compliance with the Governor's executive orders, the public has been provided the opportunity to provide public comment either via email or by providing verbal information.

[3:37] public comment during the night's meeting. We have not received any email or other written

[3:41] correspondence regarding consent calendar items or items not listed on tonight's agenda.

[3:46] At this time, the speakers who would like to provide audio comment on the items which are not

[3:50] listed on tonight's agenda please use the Zoom raise your hand feature or if joining by phone

[3:55] press star 9. All speakers must be able to provide comment at the time they are called on and are

[4:00] limited to five minutes per speaker. Speakers will be automatically muted at the five minute mark.

[4:09] At this time, I have resident Toby Balma, if you could please unmute your microphone and begin your comments.

[4:20] Thank you.

[4:21] Good evening.

[4:23] My name is Toby Balma.

[4:25] I have been an active and proud Serritos residents since 1969.

[4:31] Well, I am speaking tonight as an individual.

[4:35] Like, represent a number of other Serritos residents.

[4:40] My comments tonight are about the April 9th, the Rado City Council meeting, specifically

[4:48] the last 10 minutes.

[4:51] I was surprised at the public hearing section at the beginning of the meeting when one

[4:57] of the residents essentially encouraged council members to quote the nice with one another.

[5:04] In fact, I thought the comment was strange.

[5:09] However, I was not prepared for the closing comments at the end of the meeting.

[5:16] I want to remind each council member that you are elected public servants,

[5:23] and are expected to serve the residents of Serritos,

[5:27] and behave in an adult, professional manner in public.

[5:31] what you do in private or in a closed meeting is up to you. I now want to focus my

[5:39] comments on Mayor Salonke. I recommend our residents watch at least last 10

[5:46] minutes of the April 9th Council meeting. Your remarks at the end of the meeting

[5:54] interrogating and accusing another council member of being a liar was inappropriate.

[6:00] It was shameful in all my many years of attending council meetings I have never seen or heard anything like it.

[6:12] I could not believe what I was hearing.

[6:16] In my opinion, your behavior and comments or an embarrassment view to the council, to the city and to the residents.

[6:27] you owe everyone, including the accused council member and apology. If anyone was to be

[6:36] censured Mayor Salonke, I believe it would be you. If the city does not already

[6:43] have a code of conduct for council members, I recommend one be creative. Thank you.

[7:00] At this time, I will call on speaker, Mel Cortez, if you could please unmute your

[7:04] microphone and begin your comments?

[7:08] Yes, hi.

[7:10] Non-cortez, a real resident.

[7:12] For right now, I have a question about

[7:17] town hall meetings.

[7:19] Last Saturday, January, I did bring it up

[7:23] and regarding town hall meetings

[7:26] sponsored by council members,

[7:29] my question is,

[7:30] and back then, are these town hall meetings

[7:33] this sponsor or the personal events.

[7:39] It's a city sponsor.

[7:40] Hacam, we cannot find the information on the city's website

[7:45] or any public place.

[7:49] Now, everyone's from Facebook.

[7:51] Today, I found out there was a time home in yesterday.

[7:55] But if we come from the city council meeting

[7:58] and we are told that there'll be a time home meeting,

[8:02] That means that all of us residents should know about it.

[8:09] Last January, I'll see the council, the same questions.

[8:13] It's a city or a personal meeting.

[8:16] Back then, I asked about the use of city facilities for such meetings.

[8:21] Or the use of city flyers to promote town hall meeting in a personal or public.

[8:31] I also question the usual shareout and hotel lobby,

[8:36] Fandara, because money to actually have millions in the lobby.

[8:41] Did the city pay to rent this lobby or would say that gift to whoever did the meal?

[8:51] I did ask and mayors Alanke ask the city attorney about this issue.

[8:57] The city attorney said,

[8:59] I don't know.

[9:00] that was in January, maybe by now he knows that this RC-D sponsor or not, or maybe we'll get some clarification because

[9:10] it was announced during the last meeting and most races in the city had no idea that they already happened.

[9:20] And I hope all you get along was disappointed the last two weeks ago.

[9:27] the display of all your percent of 50,000

[9:33] residents and some things need to be spoken in private.

[9:39] We might agree with the things that are done but all your

[9:47] percent us and whatever happens there, people look at

[9:50] residents and say, that's your city. Thank you, that's for

[9:55] That's all for Rina.

[10:01] At this time, I'd like to call on Speaker Daisy Lagosca.

[10:05] Please unmute your microphone and begin your comments.

[10:16] Hello, can you hear me?

[10:17] Yes, we can hear you. Please begin speaking.

[10:20] Okay. Good evening to the city council.

[10:24] Our mayor and mayor, Pro Tem and the other city council were there

[10:28] and our neighbors. Good evening.

[10:35] Regarding, I think I have opinion regarding that two weeks ago,

[10:45] what's going on in my opinion going on in the city hall right now is like there is no team.

[10:55] One is making his own, let's say, town hall meeting, or making his own name, or whatever, you know, and the others are working for the city.

[11:16] I'm so glad for Mayor Solanke for standing for us, I think that is well done, good job Mayor Solanke for doing that because for us to know what's really going on rather than doing it in private or we have to know what's going on.

[11:39] This is pandemic, you know, the mayor, as what he said, or the city manager, supposed to represent the city, when it comes to those, you know, media, but, you know, there are some who does their own thing.

[12:02] So, I think, in my opinion, what Mayer Sri Lanka did for talking in front of everybody.

[12:12] You know, I want to know what's going on. I'm sure some residents also wants to know what's going on.

[12:22] We just want, you know, that our city council to work as a team.

[12:28] It's not by personal or, you know, it's me, it's mine, it's I think, it's supposed to be

[12:38] we,

[12:42] regarding to that city, uh, down home meeting, um, I agree with Mel, um, it's it

[12:51] personal or by city because it's not on the city website and then last night I attended

[12:58] council member Yokoyama's town hall and you know it's like he just did the talking

[13:08] it's not even like he answered one question that can be answered by yes or no but he just

[13:16] on talking and talking and talking and you know he said himself that he is not sure about the

[13:24] answer so it's like basically answering yes or no but most of the time 99.9% of the time he is the

[13:34] one talking of everything but you know seriously I did not even understand I did not even get it

[13:42] I have a question. I was raising my hand, but I was not answered. But anyway, as I said, during this pandemic, it's not a local emergency as it claimed.

[13:55] This is a worldwide emergency.

[13:59] We need a teamwork here. It's not just, you know, individual. Thank you.

[14:09] At this time, we'll call on Speaker Ananta Narayan. If you could please unmute your microphone and begin your comments.

[14:15] A

[14:25] note that if you could please unmute your microphone and begin your comments.

[14:29] Thank you.

[14:29] Can you hear me now?

[14:32] Are you a very low speaker?

[14:35] Can you can you hear me?

[14:37] Yes, that's better.

[14:37] Thank you.

[14:38] Please begin your comments.

[14:40] Thank you very much.

[14:42] Good evening Mayor Honorable Mayor and the Honorable Council members.

[14:47] My comment is regarding the agenda item that you guys are going to discuss

[14:52] on the deficit that the city is going to face because

[15:00] On the right, and we got to wait until we speak on the right.

[15:06] Well, that's okay. No problem. We can do that too. In that case, I'll wait for the item on the agenda.

[15:14] Okay. Thank you.

[15:15] Thank you, Mayor, appreciate it.

[15:19] At this time, we'll call on speaker Sam decide. You could please unmute your microphone.

[15:31] Thank you, Mayor. Council.

[15:35] Today I'm here representing some good news in between all the stuff which is going on.

[15:47] I am going to work with my team to launch Serator's newspaper, which focuses on a

[16:05] to please look forward to looking at ceritos response

[16:14] to how we gather as a community,

[16:19] how we

[16:22] created different standards as we move forward over next few months into uncharted territories.

[16:30] This newspaper is in turn based, ceritos residence based, and it will be available to download

[16:38] as well as the print copies.

[16:45] If any servitors residents would like to get their free copies and the word is free copies,

[16:53] then please look after the keywords servitors newspaper all over intellect, as well as different mailers that will be going out within a fortnight.

[17:03] I want to say thank you to everyone for coming together and help us create the

[17:11] cereals that we all know that we are. Thank you.

[17:20] Mr. Mayor, we have no other individuals who have stated that they would like to speak.

[17:25] You can declare the public comment period closed.

[17:29] Thank you. At this time, there are no other individuals who are requesting to speak.

[17:34] We'll declare the public comments up here close, and next we'll go to the concerned calendar.

[17:43] Now I have a motion to approve the concerned calendar.

[17:50] Okay, if I can separate item 7B, I can send the comments and questions on the rest of the demands.

[17:58] Okay.

[17:58] Will move the 7B and can we get approval on the rest of whom I get a mail you made a motion?

[18:08] To approve for 7A.

[18:15] We wait for council member Vol to see his questions.

[18:21] For 7B, so we'll approve 7A.

[18:24] 7A motion.

[18:25] Here's second.

[18:27] Second.

[18:28] Okay. All in favor.

[18:30] Hi. Hi. Hi. Hi. Okay.

[18:34] Madam, I'm glad we need a roll call on this item or.

[18:38] No, Mr. Mary, I did hear all of the council vote unanimously.

[18:42] Okay. So, I made a roll. I mean, Madam, may I welcome you?

[18:47] Do you want to discuss the seven.

[18:50] Do you know?

[18:52] Yes, it was okay with you, sir.

[18:59] You know, just real quick, guys.

[19:01] Considering that we're going to budget and

[19:04] We'reifying that we are spending money wisely.

[19:09] I wanted to take a look at the registry of demand.

[19:12] And a couple of questions just came up.

[19:14] And it's just, this is questions that's probably,

[19:16] just because I'm fairly new and I need to know.

[19:19] And I have a question in regards to a couple items.

[19:23] One of it's going to be on page five or two.

[19:26] There's two patient numbers on this one page.

[19:29] And it's open to staff.

[19:30] Can't just clarify what this purchase was for.

[19:33] It's the ACCA video package.

[19:36] I just wanted to go on record to find out what that package was for for the CCCA for

[19:41] 120,000 foreigners to see $2.32.

[19:45] And also the other one was it's a name corporation just wondering what that was

[19:49] fourth called and that was on the age four.

[19:52] of these four or page one, and that says Car Rust Corporation, CARUS Corporation.

[20:00] That was for 6,085.

[20:05] And then if I can have staff experience for those two real quick, I'm going to have one more.

[20:10] Mayor, if I may, I think I can cover those questions for you.

[20:15] This is Ryan Terry, a finance manager.

[20:19] The question you were asking relating to the CCPA video package,

[20:23] of $128,000. That was a capital equipment acquisition that was approved in the current fiscal

[20:33] year budget for some new video equipment over at the CCPA that included some projector,

[20:40] projectors, television monitors, mounting hardware and those type of items. Again, that

[20:47] an item that was previously approved in the capital equipment budget for the current fiscal year,

[20:54] and so that was part of our updates to some of the video equipment that we use over at the

[21:00] CCPA. As it relates to the item relating to carous water, that is a chemical purchase that we

[21:09] used to treat the water through our water department. It is a regularly occurring expense that we

[21:16] Do incur as part of our efforts, obviously, to treat and maintain a safe source of drinking water.

[21:25] So I hope that covers your two questions then.

[21:28] Yes, thank you very much.

[21:31] And then the other, the only other question I had with regards to on page 18 or 11,

[21:36] regards to Southern California, is in company for electrical power.

[21:41] My thoughts or my impressions were that initially,

[21:44] We provide our own electricity to our own facilities and we have solar and the question is how come

[21:52] Southern California Edison there's a there we have a B of six thousand five or an eight one dollars for electrical power can you explain that

[22:00] Come on you take that please say if I may I may a program. This is kind of much insurance

[22:06] we have

[22:08] pretty much

[22:09] turned over or changed over all of the city significant accounts over to Edison, namely, I'm sorry the other way around,

[22:18] a significant building accounts from Edison to the city power, namely city hall performing art center library and so on and so forth.

[22:28] What remains on a very, very few are related to irrigation controllers, to a few street lights,

[22:39] some of those accounts are still with the Edison, and we have not changed them over.

[22:44] It's just a small amount.

[22:46] So therefore, we've let it go.

[22:48] Now, this particular number that you mentioned, I've not been able to find it yet,

[22:53] But essentially, all of the streetlights in the city, most of the streetlights are owned and operated by Edison.

[23:02] As you may recall, you may have brought them a year back or a year and a half back, we went to an exercise of having Edison replace all of those lights with LED lights.

[23:13] So they are still under Edison so far as control.

[23:15] The street lights that the city control and also serves power 2 is the town center, the custom light fixers that you see, and also

[23:26] between Artisha and South Street on through the Bigger Road.

[23:31] I hope that response to your question.

[23:34] Thank you, Connor.

[23:35] Yes, thanks for clarifying.

[23:36] In regards to the power poles or street lights that we're currently paying attention.

[23:41] That's something we can also transfer over to us.

[23:43] that way, we don't have to pay for that bill, or is that something that's

[23:48] arrayed, or agreed upon with it?

[23:51] Now, that, unfortunately, there is a tire of established for street lights.

[23:56] They own and operate and maintain those street lights.

[23:59] The city does have the option in several cities.

[24:02] The state might have done that to buy out these light standards, if you will, in which

[24:08] case you could supply our own power.

[24:10] But so far each time you're tried to look at that, it does not quite cancel out in terms of the costs involved.

[24:20] Okay, thank you so much, and I'm filled with that, thank you.

[24:24] Okay, so can we bring it back to approve the consent calendar item 7B now?

[24:31] Yeah, motion to approve.

[24:34] Okay, all in favour?

[24:38] All right, all right.

[24:40] All right.

[24:41] All right.

[24:43] Take care of the constant color next.

[24:44] We have under new and all business item nine A.

[24:48] Tonight we have no public getting the next item on the agenda.

[24:51] Is new and all business starting with the item nine A.

[24:54] City manager who will give report on this.

[24:57] Thank you Mr. Mayor, members of the council.

[24:59] The next item nine A, we presented by Annie and will be an update is related to the coronavirus.

[25:04] Annie.

[25:05] Thank you, Mr. Gallucci.

[25:07] Good evening, Honorable Mayor and members of the City Council.

[25:11] On April 10th, the County of Los Angeles Department of Public Health

[25:14] extended the safer at home order to be in effect through May 15th.

[25:19] In response to the order, all city facilities will remain closed

[25:23] to the public until at least May 15th and until further notice.

[25:28] A list of facility closures is available on the city's website at

[25:31] to readows.us. On April 13, the City Manager signed an issued executive order number

[25:39] 2020-1 extending the existing proclamation of a local emergency through the duration of the local

[25:47] emergency period in the city of Serritos. The order continues the suspension of the following,

[25:54] parking enforcement, shut off of city water service due to overdue payment and requiring planning

[26:00] commission and or city council actions to approve major precise plan applications for single

[26:06] family residential or commercial exterior remodeling with no expansion of the commercial buildings.

[26:13] The order also established a tenant eviction moratorium as authorized under the California government

[26:19] codes. Under this moratorium, landlords are prohibited from evicting a residential or commercial

[26:25] Senate and the city of Serritos during this local emergency period, if the tenant is able to show an inability to pay rent due to circumstances related to the COVID-19 pandemic.

[26:38] The main issue of the city's newsletter includes an article about the order, as well as extensive information, about a variety of COVID-19 response resources available for families, seniors, and businesses.

[26:51] Cerritos residents and businesses will start receiving the newsletter in the mail tomorrow.

[26:56] The information will also be posted in the news section of the city's website.

[27:01] On April 15, Los Angeles County opened a new drive-up COVID-19 testing site in the city of Belfour,

[27:09] at the parking structure of the Belfour Civic Center located at 1,600,000 civic center drive.

[27:17] On April 17, the County announced free, same-day tests are now available for all L.A. County residents

[27:25] who have symptoms of COVID-19.

[27:28] Appointments are necessary for testing.

[27:30] Information about how to schedule a test appointment is available on the website, L.A.

[27:35] COVID-Prod.service-now.com forward slash RRS.

[27:41] People who do not have internet access can dial 211 for help with making an appointment.

[27:48] As of noon on April 22, the county reported a total of 44 COVID-19 cases in Serritos.

[27:56] This number increased to 45 cases as of noon today.

[28:00] The city's website has a link titled novel coronavirus in Los Angeles County that opens a page with information about the number of cases in cities throughout the county.

[28:10] The city is carefully monitoring information about when and how city facilities will be allowed to reopen.

[28:18] Los Angeles County Department of Public Health Director Barbara Ferrer spoke of certain strategies being in place

[28:24] as we begin to lift our health officer order, safer at home, later on in the month of May in most likelihood.

[28:31] Dr. Ferrer said things will be different as businesses reopen. Social distancing will still be

[28:38] important. Retail stores will have limits on how many people can be in a store at any given

[28:44] time so that people who are there can maintain a lot of distance between themselves.

[28:50] On April 14th, Governor Gavin Newsom outlined six critical indicators, the state will consider

[28:55] before modifying the state's stay at home order. He said there is not a precise timeline for modifying

[29:01] the state home order, but that these six indicators will serve as the framework for making

[29:06] that decisions.

[29:08] The indicators address areas such as testing and contact tracing, preventing infection

[29:14] in vulnerable people, ability of hospitals to handle surges, development of therapeutics,

[29:20] ability for private and public facilities to support physical distancing, and the ability

[29:24] to reinstate state home orders if necessary.

[29:27] The fifth indicators are listed in the news section of the website located at COVID-19.ca.gov.

[29:37] In addition to disseminating information through the website and newsletter, the City is distributing COVID-19 updates

[29:43] to e-new subscribers to the topics of breaking news and emergency information.

[29:48] Community Emergency Response Team Disaster Preparedness, Serritos Neighborhood Watch, city news, and a crime prevention information.

[29:56] Community members are encouraged to sign up for the city's EAT.

[30:00] Any new service to receive updates by email and text messages. The sign-up form is available by clicking on the red envelope in the upper left corner of the home page of the city's website.

[30:11] The county also offers subscriptions to email and text message information about the county's response to COVID-19.

[30:18] The sign-up form is located under the stay-in form section of the website https

[30:24] call in forward slash forward slash COVID-19.lacounty.gov.

[30:30] This concludes my report and city manager, Art Coluchy, and I would be happy to answer any questions.

[30:42] Thank you, Annie.

[30:43] For the report.

[30:46] If the council has a question, I will start with a council member here, do you have a question?

[30:52] It's all thank you.

[30:55] Thank

[31:00] you

[31:04] for that report, Annie.

[31:15] You know, we are, I'm glad that we are getting these updates about the City of Serritos response to the COVID-19 pandemic at our meetings.

[31:36] And also, we are in a local emergency,

[31:43] our city of Sriddle says declared a local emergency

[31:45] because of the COVID-19 pandemic.

[31:49] I just, again, I'm glad we're getting these updates

[31:51] at the meetings, but I'm,

[31:57] I opinion,

[31:59] we should be more regularly giving our residents

[32:05] updates, we, I'm glad we're sending out emails.

[32:11] And I'm glad that we are sending text messages.

[32:16] And the residents, as you've informed them, Annie, they can sign up for these emails and text messages.

[32:23] But I know that I know that we're not sending out emails and text messages daily.

[32:31] And things are changing daily, you know, forgive me if I overlooked it, but I did try to look

[32:41] up and read the city emails that I signed up for and I believed that the last city email

[32:51] I got and again, Annie, forgive me if I overlooked one, but the last city email I got was sent

[32:57] on Friday.

[33:01] And, you know, I hope that I overlooked some or overlooked one and there was one

[33:06] cent since Friday, but that was the most recent one I could find. That was the most recent

[33:10] email I could find. Since Friday, how many emails have we sent out any to our residents

[33:16] updating them about the City of Sereto's COVID-19 response?

[33:22] The most recent email that was distributed was last Friday.

[33:28] Okay, so that's six days ago and I think I believe just from communicating with residents

[33:37] that they would they really want information.

[33:40] So I hope we will consider as a city whenever something new comes from either the city manager's office

[33:49] or from the county of Los Angeles or from the state or from our sheriff station or from our community

[33:55] safety office.

[33:57] You know, we should consider emailing that out to the residents or texting that out to the residents

[34:01] because it's my opinion that the last COVID-19 pandemic response email from the city going out

[34:11] Friday. It's my opinion we're not sending out updated information enough. I also wanted

[34:19] the please ask about the deputy who tested positive for COVID-19. Is the captain or

[34:34] available to please give us an update on our

[34:39] suite of sheriff stations so we can just know that

[34:44] measures have been taken to ensure our deputies and

[34:48] our suite of station personnel and our

[34:50] suite of station deputies and Captain Minden and

[34:56] public safety manager, derelevens are all safe and

[34:58] sound.

[34:59] So we please get an update about that deputies tested positive

[35:02] or COVID-19.

[35:05] Yes.

[35:06] Councilman, Darrell, would you take the first part of that

[35:08] in the capping for the finish-up?

[35:11] Yes, sir.

[35:11] Hello, Mr. Mayor and Councilmember Yokeama.

[35:14] This is Darrell Evans Public Safety Manager.

[35:18] You know, I think this will be best answered by Captain Minden

[35:21] who can give you a status report on what happened then

[35:25] and the efforts to safeguard the deputy's reputation

[35:28] and then the state of the deputies that were subsequently tested after initial contact.

[35:33] Captain Men, can you provide a general briefing on the status of the station?

[35:42] Hi, sir.

[35:42] This is Captain Den, a good evening, an honorable mayor and council members.

[35:48] First, on behalf of the men and women, it's trying to do a surreal surf station and we'll

[35:51] like to take this opportunity to first thank all council members, and I'll see the manager

[35:57] for your leadership during this difficult time.

[36:00] Secondly, I would like to say thank you for the continuous support of our mission to provide

[36:04] police services to the resident.

[36:07] To answer your question, on April 11, 2020, we'll receive information about Serito Sheriff

[36:14] and Poise being exposed to a liquid deputy who tested positive for COVID-19 on the day before

[36:21] which is Friday, April 10.

[36:23] And apparently this person from liquid station, he had been exposed to an individual who got confirmed COVID-19 and was an off duty incident.

[36:39] And on April 11th, he received information that has come back positive.

[36:44] We took every measure at the time to contain all personnel who have been exposed to this

[36:51] person.

[36:52] The number was 8 personnel assigned to the desk area as well as our deputies and our

[36:59] watch commander.

[37:00] All were quarantined and they were tested and they came back negative.

[37:07] They all came back to duty as we speak.

[37:11] Also, we notified, we took the step to clean the area immediately after the notification was taken place.

[37:19] And I informed Mr. Darrell on that same Saturday morning when I learned about that exposure.

[37:26] So at this point, we are fully operational and I'm pleased to find.

[37:32] That's all I got, sir.

[37:33] It's very, very happy to hear that that everybody, everybody is fine as of today, given

[37:44] the exposure.

[37:46] And how is the deputy who tested positive, kept in, again, have we received an update

[37:53] about that deputy's health as well as his family?

[38:00] He is doing fine so he is one of those individuals who carry the virus but not affected by it so his family are doing okay.

[38:12] Okay, well thank you and your assurance to us on the council and to the residents that the suite of sheriff station is

[38:24] It has is safe and sound and you and your deputies and the personnel and staff are safe and sound.

[38:32] That's very reassuring.

[38:34] Thank you so much, Captain Den.

[38:38] That's my question please.

[38:52] Mayor Kim.

[38:53] Thank you.

[38:53] You're welcome.

[38:55] What do you have questions?

[38:59] I do not.

[38:59] Thank you.

[39:03] Any I had a question.

[39:04] I know we're not updating daily, but there is a county board of supervisor.

[39:08] that gives news every day, pretty much at noon time,

[39:12] and we are pretty much extension of whatever the company does, right?

[39:17] That is correct, Mayor, every day at 1 o'clock,

[39:21] the LA County Department of Public Health

[39:23] and the Board of Supervisors members provide an update

[39:27] and they stream that live over their YouTube channel

[39:32] and their Twitter feed.

[39:35] So that is available, and it's also covered

[39:37] by the broadcast news media within the area, and they of course also send out that information

[39:44] as an email at typically later in the day, and the county does distribute emails as appropriate

[39:52] when the county is offering new programs or services, and we typically blame the information

[39:58] that is pertinent to the city of Serritos and add our own if we have any new city information

[40:04] and then distribute that through our channels.

[40:08] Thank you very much.

[40:09] And I know I also receive regularly pretty much on a daily base email from our own

[40:15] carnivore of Supervisor, Jonathan, and gives pretty much all the information.

[40:20] And I know it goes to all the residents who have signed up on it.

[40:23] So thank you for the report.

[40:24] Now I will open it up for the public comments if any would like to have a

[40:29] on the item 9A.

[40:32] Do we have a speaker on this item?

[40:35] Thank you, Mr. Mayor.

[40:36] We have not received any written correspondence on this item,

[40:39] but we have several people who would like to speak.

[40:42] At this time, I will call on speakers.

[40:45] Sophia, say if you could please unmute your microphone

[40:47] and begin your comments.

[40:55] Sophia, can you please increase your microphone?

[41:01] Yes, that's a little bit better.

[41:02] Thank you. Okay. I need so few of that.

[41:06] Are you breaking off? We cannot get any different.

[41:11] Hey, how are you now? Yes.

[41:15] Regarding COVID-19, yes, we do it.

[41:18] We seek the information about the number going up.

[41:21] So what have we been doing in our city with the positive COVID-19 and with the symptoms?

[41:27] Those residents, some of them may be there, we, what do we do with some service for those people?

[41:33] The city has a firm for them.

[41:44] I guess they probably have to contact the county, correct art.

[41:50] The county or senior center, if they contact the senior center,

[41:53] we will get them to direct it to the right people.

[41:58] You know, plus we cannot have the names and due to the heap of violation,

[42:02] and we cannot obtain their names and numbers.

[42:05] There is correct, sir.

[42:07] Thank you.

[42:10] Let's be clear.

[42:14] At this time, I'll call on Speaker Raleigh Bos Devon.

[42:20] If you could please, I need your microphone.

[42:22] Thank you.

[42:23] Can you hear me?

[42:24] Yes, we can.

[42:25] Thank you, Speaker.

[42:26] Good evening, Adam.

[42:27] So, I know we had the first corona COVID-19 case report

[42:34] that I think over a month ago.

[42:37] So, is CT following up and tracking whether they have recovered, for example?

[42:48] Even though there is a total 14-45 cases, probably 10 or 15 of them could have recovered

[42:57] if they were quarantined for two weeks, like that is what?

[43:02] Let us say, so it will be helpful if CT can. I am not asking for the affected people's name address for number.

[43:11] I am just asking that whether CT can provide an update saying that, okay, out of that 15 have recovered.

[43:19] So it is only 30 affected people in serytos, right? So something like that will be helpful.

[43:24] And also, I don't know, is there any fatality, weight, or anything, you know, because things like that might be to be helpful to get all those numbers without revealing their identity.

[43:39] Thanks.

[43:44] Thanks, Speaker.

[43:46] Thank you, Mayor.

[43:47] Next speaker is Milk Cortez.

[43:49] If you could please unmute your microphone and begin your comments.

[43:53] I know Cortez, three of those residents.

[43:55] question about the decade that was tested positive for COVID-19. So we

[44:02] did hear what happened at the station. My question is why do residents have to

[44:11] find out through this meeting that one or the previous tested positive about two

[44:20] basically.

[44:23] Also, besides this sheriff's station, was the deputy on patrol, out on patrol

[44:31] that day, was he, he spent all day in a station. And he wasn't patrol, where did he patrol,

[44:38] where did he eat, and what are the people he coming contact with. So, it's, we probably need

[44:46] information sooner than later, and not through a CD council meeting to a question.

[44:52] I hope that maybe information from the CD is more up to the earlier sooner than later.

[45:00] All of us, all of us are affected by all this. So please keep in mind that our 50,000 residents need to find information sooner than later. Thank you.

[45:19] Darrell or Captain, can answer that question. I thought we were a re-answer there but

[45:23] can we clarify that where he was working, how long and what did we do with the station?

[45:33] Captain Minden, can you address that I'm not sure what the Japanese fuel sign was?

[45:41] Yes, so I certainly can take answer that question. First of all, the Japanese, like I said,

[45:47] he was assigned to a patrol function, high visibility. In other words, he was working by himself

[45:52] for the most part I did ask the question whether or not did he come in contact with any

[45:58] resident and then the answer was no. He has limited contact with another field personnel and

[46:06] that's why not field deputy was also asked to be you know to be quarantine and got tested. That

[46:17] person also came back negative as well. So he had no contact with other citizen on the street.

[46:24] He did not enter into any other facility within the city. His involvement was limited

[46:32] at the station and for the abundance of caution we quarantine those whom he coming contact

[46:40] with. Like I said, those personnel came back negative and they all came back to work.

[46:47] Thank you.

[46:48] They're mayor Sloan.

[46:48] He just deliver levels.

[46:49] They also just emphasized as Captain Den had mentioned the deputy that was here temporarily

[46:55] in working majority in the field.

[46:57] It did have some close personal contact with deputies here in the station, you know, hand shakes

[47:02] and very close contact.

[47:05] As a result of that, about five or eight shares department employees were self-quarantine.

[47:14] They were all tested and they all came back negative.

[47:16] So even though he was here at the station had very close personal contact with several people who we actually knew

[47:23] They were all tested and all came back negative not one of them was impacted at all

[47:28] So we're not sure if the deputy was even contagious at that time or merely just

[47:33] Tested positive for the antibodies and then at some point yet in there

[47:37] So the good news is that we knew exactly who he contacted here at station

[47:41] They were all tested and every single one of them came back negative

[47:44] So there was no transmission on that day

[47:48] I dare all and thank you, Ms. Ring, for the report, I'm glad that, you know, what other

[47:53] this, I'll say, and we took care of that issue right away.

[47:57] Madam, I'm glad the next speaker.

[47:59] Thank you, Mayor.

[47:59] Our next speaker is Daisy Lagasca, if you could please unmute your microphone and begin your

[48:03] comments.

[48:06] Hi.

[48:07] Thank you.

[48:09] Good evening again.

[48:11] I think this one is speaking about the COVID, because last Saturday, last Saturday, tomorrow is

[48:17] Saturday again and it's the former smart kids.

[48:20] I have a friend and she's also a nurse and I think she was treated not well by some of the

[48:32] customers in the farmers market because she was trying to correct some of those people you

[48:41] know online that they're supposed to be they're supposed to be a social distancing but instead

[48:48] They made fun of her and I think they are also in gloves. I just want to make a comment about those gloves

[49:00] Because if they are wearing gloves, these people wearing gloves and they go to the farmers market and then they are catching all these vegetables and

[49:09] fruits

[49:10] They're just, you know, it's just cross-contamination that's going on

[49:14] So, is there any way other than gloves that can be used maybe, you know, don't just, I don't think gloves is, you know, useful when it comes to the farmers market because everybody is touching everything, you know, and some are eating salads and those are raw or those apples or, you know, so is there any way,

[49:43] maybe a hand sanitizer or alcohol or whatever to clean their hands in every you know every

[49:53] stall of the you know stall or the stores for the people to use and then for the social

[50:02] distancing for those people who doesn't follow is there any sheriff

[50:10] a deputy to be there at least to observe, it's only like few hours anyway, so can we request

[50:20] somebody to be there to, you know, talk to the people or because if these people doesn't

[50:28] believe, you know, on social distancing, then, you know, they're just spreading whatever they have.

[50:35] And then I have another question.

[50:41] Is this the only public comments we have tonight?

[50:45] Well, on this COVID-19, we're only talking about item 9.

[50:50] Okay. Okay, Mayor.

[50:51] I think COVID-19 will be a comment on that.

[50:53] We're taking it for the comments.

[50:55] If there is other agenda item, you need to wait on it.

[50:57] Okay, thank you, Mayor.

[50:58] Anyway, regarding the city, the senior senior center.

[51:04] Um, it's during the way you guys will going to include, you know, the meals, the toilet paper,

[51:13] uh, gloves and uh, masks for the seniors too.

[51:19] Thank you very much.

[51:21] Thank you.

[51:23] Uh, can you answer the question?

[51:25] I think the Palmer's Market and the seniors with the blows and the masks.

[51:31] Uh, yes, Mr. Mayor.

[51:32] regarding the farmer's market, it is a contract group that's out there, but they still

[51:37] are responsible to us, and Sherry Titus is listing on one of the rooms here, so she works with

[51:42] that group, but she'll be contacting him, and she'll see what she can do to get some additional sanitizing,

[51:48] but they put it up, sanitizing areas a couple of weeks ago, and we'll check and see what they

[51:54] more are needed. As it relates to the gloves of masks this past week, at the Senior Center,

[51:59] We gave 300 masks and gloves to our residents and we gave them additional toilet paper each week.

[52:06] That's the past month, they received toilet paper and gloves every other week.

[52:13] So that's been taken care of.

[52:15] Thank you very much.

[52:17] It's but on next speaker.

[52:19] Thank you, Mayor.

[52:20] Next speaker is Anantana Ryan.

[52:22] If you could please unmute your microphone and begin your comments.

[52:27] What made me one of the mayor and council members, I just wanted to, you know,

[52:33] a lotchant to the point of the resident, Jason, Ligasca, on the almost market because

[52:39] I did see in the social media that the people who in the farmers market on last Saturday

[52:47] were not maintaining social distancing and the, there was issues with how well the

[52:57] COVID-19 precautions of being taken care in the foremost market.

[53:02] And the answer by the city manager that we have a contract with the third party,

[53:08] you know, they have to take care.

[53:10] We cannot, the point is we cannot shed the liability from us just because we are contracting

[53:16] these to somebody else.

[53:20] Being in a household where I have a first-line responder, I know the difficulties

[53:26] the medical professionals are undergoing because of this pandemic. They are in the PPE for eight

[53:35] hours together and then when they come home they have to quarantine themselves, clean them

[53:40] themselves up. That faces are covered with rashes, my wife's face is covered with rashes, putting

[53:46] the mask and putting the shield and she's not even in the frontline emergency wards dealing with

[53:54] on the second line of the patient care. And if that is being very difficult, we need to understand

[54:03] that we have a responsibility here as a city and as residents towards our health care professionals

[54:11] and the community of law. And if we are unable to maintain proper social distancing and the

[54:18] proper guidelines of the L.A. County, Dr. Ferrer on the L.A. County Public Health Department.

[54:24] She is, multiple times mentioned that any public places, you know, the people who are

[54:32] coming into those public spaces need to be queueed up on their, especially in a far, far

[54:38] much market.

[54:39] I don't know whether we are queen of people, we are stopping people in the entrance and

[54:43] then counting the number of people that can go to the stalls and I am.

[54:48] I'm not being to the farthest market, probably tomorrow I'll try to go there, but I don't know whether these measures are being taken care of.

[54:56] And it would be very, very bad, public, you know, PR, fiasco, if we, as become an epicenter, our farmers market, become an epicenter for transmitting coronavirus COVID-19.

[55:13] And I hope the city council understands the gravity of the situation and, you know, in their wisdom and in the collective knowledge that they have,

[55:23] as, you know, first of all, I don't know why we even allowed the enormous market to happen.

[55:29] And if we are allowing, because small business needs to be supported, then do we have the proper measures to do the enormous market.

[55:37] And it looks like it is not the case, and I hope the council will wake up to the fact

[55:41] that it is not going well, and it will take us the city manager to take the appropriate

[55:47] actions regarding this far-ness market. That would really help the community at large and

[55:52] the health care professionals who are fighting this pandemic day-in and day-out. Thank you, Mayor,

[55:57] and thank you, council. Thank you.

[56:01] Madam Clerk, next speaker.

[56:04] Thank you, Mayor. There are no further speakers who have chosen to speak and you can declare

[56:08] the public comment period close.

[56:10] Okay.

[56:11] We will now close the public comments and go to like M9B.

[56:20] Mr. Mayor, remember to send a comment.

[56:22] The next item before we deny M9B is a discussion by staff that relates to Verizon wireless

[56:27] and a piece of least property that they are on in the city of Serritos.

[56:31] Mr. Port, we give them a question.

[56:33] And she and Tori will be happy to answer any questions.

[56:36] Thank you Mr. Guluchi, Chris and Agila, advance planning manager, good evening, honorable mayor and members of the city council.

[56:44] The item before you this evening is a proposal to extend to existing ground lease agreements between the city of Serritos and Verizon Wireless

[56:52] for use and lease of portions of city owned property located at Liberty Park and Serritos Park East for wireless telecommunication purposes.

[57:04] In August 1995, the City of Serritos, as property owner and groundless store, entered into

[57:13] two East Agreements with Los Angeles, SMSA Limited Partnership, doing business as Verizon Wireless.

[57:22] Under the East Agreements, Verizon Wireless was authorized to construct, maintain, and operate wireless telecommunications facilities

[57:30] at portions of the city on property located at Liberty Park and CPE.

[57:38] As such, after the execution of both places,

[57:41] Verizon Wireless Replace existing light standards at both parks,

[57:46] and they replace those with new monopoles and accessory buildings

[57:50] to support wireless equipment.

[57:53] Subsequent to completing the wireless facility improvements at both parks,

[57:57] rise in wireless sub-leases areas to American tower corporation,

[58:02] thereby transferring the maintenance and operation of these areas.

[58:06] Both ground leases were for 15 years with two five-year extension options,

[58:12] which have now been exhausted.

[58:14] As a result, the leases are now set to expire in July 2020.

[58:22] On the screen, on the left, the location map of the lease premises,

[58:27] The wireless facility located at Liberty Park.

[58:31] You can see the proximity of the facility to the entire park.

[58:35] On the right is the photo of the monopole, the park light standards, and wireless equipment

[58:40] storage facility.

[58:44] Next is a location map and a photo showing the least premises at Cerritos Park East.

[58:51] And this again is used for wireless telecommunication facility purposes under the existing

[58:56] ground lease.

[58:59] As I mentioned, the existing lease agreements are set to expire in July, and in anticipation

[59:06] of that expiration in February 2019, American tower corporation reached up to the city on

[59:14] behalf of rise in wireless to extend both brown leases for the continued use of these city

[59:19] on properties for wireless pellet communication purposes.

[59:23] In light of this request and due to pass city council direction to maintain revenue generating sources,

[59:30] over the past year, city staff and the city attorney's office have commenced negotiations

[59:35] for the potential extension of these ground leases, and that would be by way of an amendment to each ground lease.

[59:44] As a result of those negotiations, before you this evening, it's a proposal for the extension of both ground leases.

[59:52] Under the proposed terms of the ground lease extension, the ground leases would become effective

[59:58] beginning August 1, 2020.

[1:00:00] And would be for a initial period of 10 years, with two five-year options, potentially resulting in a 20-year lease.

[1:00:09] In addition, staff has negotiated a substantial rent increase with the rent for each facility being $3,000 per facility per month.

[1:00:18] Under the current ground leases, the city receives $1,900 per facility per month, and the

[1:00:25] negotiated $3,000 per month per facility under the proposed new terms is a 66% increase

[1:00:31] in ground leased rent over what the city currently receives.

[1:00:36] In addition, the $3,000 per facility per month rent would be increased annually based on CPI,

[1:00:42] provided that the increase does not exceed 5% annually.

[1:00:46] Lastly, if approved, within 30 days of executing the extensions, the city will receive

[1:00:53] a one-time payment from American Tower Corporation of $20,000 per facility, totally $40,000

[1:01:01] in one-time revenue for the city.

[1:01:04] It should be noted that American Tower Corporation has reviewed the proposed lease terms and

[1:01:09] has expressed its approval and interest in continuing its use of the lease premises under

[1:01:15] proposed lease terms. During negotiation, city staff conducted a survey of 54 Southern California

[1:01:23] cities to assess the monthly ground lease rent, other cities received for the same purpose.

[1:01:31] Of the surveyed cities, the lowest monthly rent assessed was $1,200 per facility per month,

[1:01:37] which includes the cities of Santa Ana, Laguna, Miguel, Irvine, and Diamond Bar.

[1:01:41] The highest monthly recess was $4,167 per facility per month, which was by the city of Pasadena.

[1:01:52] Overall, staff found that in overwhelming number of cities, 42 of the 54 surveyed cities, charged between $1200 and $2,000 per facility per month.

[1:02:03] In addition, the average waste term for these purposes is between 20 and 30 years.

[1:02:09] By extending the lease agreements pursuant to the terms I discussed, the city would continue

[1:02:15] to provide residents with access to wireless service, while also receiving ground lease

[1:02:20] rent revenue totaling about $72,000 per year.

[1:02:25] In addition, the existing wireless telecommunication towers and facilities that both parks

[1:02:29] do not interfere with the usability or the accessibility of park resources.

[1:02:35] Therefore is for these reasons that it is recommended that the city council authorized the city to

[1:02:40] extend the existing lease agreements with Verizon Wireless.

[1:02:44] And that concludes my presentation.

[1:02:46] I am available to answer any questions the council may have.

[1:02:49] Thank you.

[1:02:51] Thank you, Christian.

[1:02:55] I have a question.

[1:02:57] I'm going to increase any kind of voltage or tower size or anything.

[1:03:04] Well, it is existing and they're not going to make an improvements.

[1:03:10] As part of the, thank you, Honorable Mayor, as part of the negotiations, there are currently

[1:03:15] no contemplated upgrades or improvements.

[1:03:18] Now, that's not to say that under the existing ground links or under the extension of

[1:03:24] a approved that they can't submit for upgrades or extensions, I know that as part of the

[1:03:28] 5G network, several carriers are making upgrades, but at this time current day we do not

[1:03:34] have any contemplative proposals for upgrades or additional equipment at those facilities?

[1:03:40] Thank you.

[1:03:42] Okay.

[1:03:42] At this time, I will call for the questions from the council.

[1:03:46] I'll start with the council room and you.

[1:03:48] Do you have any questions?

[1:03:50] No.

[1:03:51] I think the rent is pretty good for us compared with other cities.

[1:03:56] They got paid.

[1:03:58] So I think $3,000 is good income.

[1:04:01] And I want to thank the employees to staff for your hard work.

[1:04:07] Thank you.

[1:04:09] Don't you remember your Kiyama, do you any questions?

[1:04:15] No, thank you.

[1:04:17] Mayor for Tim Wolf.

[1:04:19] No, thank you.

[1:04:21] OK, thank you very much.

[1:04:22] Guys, did a great job of $3,000 a month.

[1:04:26] It's a very good income per month.

[1:04:28] Because I have another location.

[1:04:29] I'm not getting anywhere close to it.

[1:04:31] So you guys are done like a consummate who says stabbed on a great job and it's a good

[1:04:37] additional income to our city appreciate your help and support.

[1:04:41] All right.

[1:04:43] If you don't have no more questions, I will open it up for public if anyone like to speak on this

[1:04:47] item.

[1:04:48] It doesn't clear to any speakers on this item.

[1:04:51] Thank you, Mr. Mayor.

[1:04:52] We have received no written communications on this item but we do have one speaker.

[1:04:56] Tubby Balma, if you could please unmute your microphone and begin your comments.

[1:05:02] Thank you.

[1:05:02] I have a question for staff by removing this contract, does that mean that the city will continue

[1:05:10] to be limited to frontier and charter as our internet choices?

[1:05:21] We're going to have the analogy about that.

[1:05:25] Both facilities are currently maintained and managed and operated by Verizon wireless.

[1:05:31] are not currently used by Spectrum and Frontier, so I'm not familiar whether or not those

[1:05:40] two providers have any equipment on those existing Verizon wireless towers that would be

[1:05:46] by way of an agreement between Frontier and Spectrum and Verizon.

[1:05:55] Thank you.

[1:05:57] I'm glad we have anyone else speaking on this item.

[1:06:01] At this time we have no more speakers, mayor, and you can declare the public comment period closed.

[1:06:07] At this time the public comment is closed.

[1:06:12] We'll need a portion to approve.

[1:06:18] I'll sign to that.

[1:06:22] They come to the roll call.

[1:06:25] Also members, who?

[1:06:28] Yoko Yamaha.

[1:06:32] Yoko Yamaha?

[1:06:33] Yoko Yamaha?

[1:06:40] Aye. Sorry about that.

[1:06:44] Mayor Pertembo?

[1:06:45] Aye.

[1:06:47] Mayor Salonki?

[1:06:48] Aye.

[1:06:49] Motion passes 40.

[1:06:51] OK.

[1:06:51] Next item on the agenda.

[1:06:53] The new and old business.

[1:06:55] The item on the 19.

[1:06:56] It says the manager can we get a report.

[1:06:58] Yes.

[1:06:59] Mr. Remembers is a council.

[1:07:00] The next item before you the evening is request by Jaguar Land Rover of Serritos,

[1:07:05] owned by the Pinsky Corporation, as it relates to a request of council for an extension on the payment of their lease.

[1:07:11] This report would give my Kristen and she and I would be having

[1:07:14] answer any questions.

[1:07:17] Thank you, Mr. Groochie.

[1:07:19] Kristen Aguila at Man's Planning Manager.

[1:07:20] Good evening again, Honorable Mayor and members of the City Council.

[1:07:24] As you are aware, the city, its businesses, its residents, and the community are facing

[1:07:29] very unprecedented and uncertain financial times as a result of the COVID-19 pandemic.

[1:07:35] The impact of this pandemic has devastated local businesses, including the auto industry.

[1:07:42] In March, the City of Serritos was approached by Penske Jaguar Land Rover Serritos, which currently

[1:07:48] occupies city owned and city-controlled property, at which time the tenant expressed financial

[1:07:54] concerns related to the impact that this virus has had on the dealership and on the tenant itself.

[1:08:01] During these negotiations, or excuse me, during these discussions, Pensky Jaguera Land Rover,

[1:08:08] the tenant requested rent assistance from the City of Serritos, as the City owns a dealership

[1:08:13] property, and serves as the landlord under the existing ground lease.

[1:08:18] For my report, I will discuss Pensky's request for rent or furl during this crisis.

[1:08:26] On the screen is, in just a moment, is an aerial photo of the subject property, as I mentioned

[1:08:33] the property is currently owned and controlled by the City of Sridos and is located at 1086-183

[1:08:41] street in the Sridos Auto Square at 183-3 just west of Sudemaker Road.

[1:08:48] The subject property was purchased by the City of Sridos in 2005 as part of a property

[1:08:54] exchange with Valley Christian schools.

[1:08:56] At that time, the property was vacant with no buildings nor any site improvements.

[1:09:01] Upon acquisition by the city, the city entered into a development agreement and the ground

[1:09:08] list with Townsend Automotive Group for the development of the property as an automobile

[1:09:13] dealership used. Then, in 2012, Townsend Automotive entered into a public agreement with

[1:09:20] L.R.J. Automotive doing business as Pensee Jaguar Land Rover Serritos for use of that

[1:09:31] agreement are long-term lease agreements for a period of 40 years and are set to expire

[1:09:38] in 1945, pending the tenets execution of a 10-year option.

[1:09:43] Under the existing ground lease, the city receives 23,367 dollars per month, totalling approximately

[1:09:52] $280,000 each year, and ground lease rent revenue for the city of Doritos.

[1:09:57] This amount is adjusted every five years based on CPI with the next adjustment scheduled for December of this year.

[1:10:06] Please note that the tenant, Pensky Jaguar Land Rover, has remitted all ground lease rent payments to the City of Sredos on time.

[1:10:14] It should also be noted that within the Sredos Auto Square, the City only owns two auto dealership properties,

[1:10:22] which are then groundless detenets of which one is this Pensky Jaguar Land Rover.

[1:10:31] As I mentioned earlier, in March, the sub-LSE are LRJ Automotive Pensky Jaguar Land Rover Serritos.

[1:10:40] Reach out to the city to express its concerns regarding the dire economic conditions presented by the COVID-19 crisis.

[1:10:46] And also to request the city's assistance as landlord and as property owner in deferring ground

[1:10:53] lease rent payments in order to help the dealership withstand the difficulties brought

[1:10:57] out by the pandemic.

[1:11:00] Specifically, since the outbreak outbreak of COVID-19 and the declarations of local emergency

[1:11:05] at a federal state and local level, vehicle inventory production and availability have significantly

[1:11:12] declined. The equal residual values are decreasing, and the equal sales that other dealerships

[1:11:18] have been significantly affected. At a local level, the Cerritos Jaguar Land Rover

[1:11:24] dealership has been significantly impacted by the COVID-19 pandemic, and also the stay-at-home

[1:11:31] orders issued by the State of California and the County of Los Angeles. While the dealership

[1:11:36] Other means open for service and parts, dealership staff as a whole has been reduced by 35%.

[1:11:43] The parts and service department is operating at reduced hours only operating now Monday through Friday.

[1:11:51] In addition, the sales department is now operating by phones and or by conducting online vehicle sales.

[1:11:58] This has significantly impacted the sale of both new and pre-owned vehicles at the dealership,

[1:12:03] and while the dealership typically sells around 20 vehicles each week, these sales have significantly reduced.

[1:12:11] I would also like to add that in October 2018, Pensky Jaguar Land Rover obtained City Council approval and building permits

[1:12:19] for a major interior and exterior remodel, including building upgrades and landscape refurbishment.

[1:12:26] While these improvements have been substantially completed, the project is still continuing regardless

[1:12:32] of the financial constraints posed by the pandemic.

[1:12:38] Upon receipt of the dealerships request for rent to thorough,

[1:12:42] city staff review the existing ground lease

[1:12:44] to assess the potential financial implications

[1:12:46] of providing a deferral of existing ground lease rent.

[1:12:51] And determined that the proposed rent to thorough

[1:12:53] was reasonable and consistent with the city's existing protections

[1:12:58] against residential and commercial evictions

[1:13:01] implemented during this pandemic.

[1:13:03] In light of the dire conditions created to the automotive industry, the City of Serritos

[1:13:09] negotiated the following terms.

[1:13:11] A three month rent referral for July, August, and September 2020, totaling $70,100 and $1.

[1:13:20] Payback of this rent referral will begin six months after the deferral, starting on April 1, 2021.

[1:13:27] And beginning on that date, Penske shall have 12 months to pay the city this deferred rent.

[1:13:35] As such, all deferred rent will be required to be paid back to the city by April 1, 2022, and that is with no interest.

[1:13:43] If full payment is not received within this 12-month period, 15% interest will be added to the outstanding balance.

[1:13:51] This is not a proposal for the city to waverend or forgive rent, but rather just to defer the rent as an economic tool during this crisis.

[1:14:01] These terms were reviewed by the Serios Jaguar Land Rover dealership and Pensky House has expressed its appreciation to the city for considering such assistance.

[1:14:12] As you are aware, the Streetos Auto Square is one of the city's largest revenue-generating

[1:14:17] land uses.

[1:14:19] The pandemic has had serious financial impacts to the Streetos Auto Square, including the

[1:14:23] Jaguar Land Rover dealership.

[1:14:26] As I mentioned, they have had to reduce their staff by 35 percent and have had to reduce

[1:14:30] their operating hours and resort to online sales only, resulting in a significant decline in

[1:14:36] auto sales.

[1:14:37] It is for these reasons that the request from Penske as tenant

[1:14:42] warrant special consideration by the City of Serritos as landlord

[1:14:46] and in effort to provide assistance during the pandemic.

[1:14:51] In addition, and as I mentioned, this request is consistent with the moratorium established by the City of Serritos for residential and commercial properties.

[1:15:00] Therefore, at this time, it is recommended that the city council authorized the city manager to provide a three-month rent deferral to Penske Jaguar Land River Serritos by way of a rent deferral agreement, pursuing to the proposed rent deferral terms I discussed.

[1:15:16] This concludes my presentation. At this time, I will be happy to answer any questions the council may have. Thank you.

[1:15:22] Thank you Christine for the report. Is it time I will call questions from the Council, Council member, you, do you have questions?

[1:15:30] No, thank you.

[1:15:32] Council member Yokoyama, do you have questions?

[1:15:37] No.

[1:15:38] Council member, may for time or what do you have questions?

[1:15:43] No, this time, thank you.

[1:15:44] Okay, thank you Christine for the report and we will now open up these public comments on this item.

[1:15:51] I'm glad to be having a speaker on this item.

[1:15:55] Thank you, Mr. Mayor.

[1:15:56] We have received no written public comments.

[1:15:58] We have two speakers who would like to make comments.

[1:16:01] At this time, I'd like to call on speaker Mel Cortez.

[1:16:04] If you could please unmute your microphone and begin your comments.

[1:16:08] I mean, Mel Cortez, it's real resident.

[1:16:12] A couple of questions on this.

[1:16:14] Are the employees from this business thing paid?

[1:16:19] If they're going to delay their payment, it will be nice if they're playing their employees right now.

[1:16:28] Also, will they delay the income from this list?

[1:16:33] Will this affect any city jobs at their future?

[1:16:37] Because we won't get the money.

[1:16:38] We know that we're going to get them to next year.

[1:16:40] But we have less income right now.

[1:16:42] Will that affect any future job and employees?

[1:16:48] for the lack of the income so I just hope that that's not the case and I hope that

[1:16:56] they're actually paying their employees. Thank you.

[1:17:02] I'm glad to second speaker.

[1:17:05] Thank you. This time we will call on speaker Norma Williamson.

[1:17:08] If you could please unmute your microphone and begin your comments.

[1:17:12] Yes, good evening Mayor Salonki and City Council members. Can you hear me?

[1:17:18] My name is Norma Williamson, and I'm a 17 year resident of Serritos, and while it is commendable that the director of emergency has passed executive orders establishing a 12 month moratorium on residential and commercial tenant evictions due to verifiable COVID-19 hardships.

[1:17:43] I understand the need for compassion in these hard economic types.

[1:17:49] Nevertheless, in regards to corporate rent deferral agreements,

[1:17:55] I feel that there should be some sort of community reciprocity.

[1:18:01] The city helps the business community and the business community should help residents in return,

[1:18:08] especially during this historic pandemic.

[1:18:12] Corporations like to count their corporate citizenship status, like Sir Ralph, Frank, he's the CEO of Jaguar Land Rover.

[1:18:25] If you visit their company website, he is quoted as saying, Jaguar Land Rover improves lives in the communities we call home.

[1:18:36] Jaguar Land Rover has donated 388 vehicles to the Red Cross societies in the fight against

[1:18:46] COVID-19.

[1:18:48] In countries like Britain, Russia, Germany, the Netherlands, South Africa, Brazil, and

[1:18:55] more.

[1:18:56] But none have been donated or loaned to Serritos, let alone the United States.

[1:19:03] While it is commendable that Jaguar Land Rover has begun manufacturing and delivering

[1:19:12] 5,000 medical vices a week for the National Health Services in the UK, none have been allocated

[1:19:22] for serides, area nursing facilities, or hospitals.

[1:19:27] So, before signing the rental deferral agreement for the Pensky Jack-Wireland Rovers Ridos, I feel

[1:19:37] that they should reciprocate with something.

[1:19:41] Perhaps offering free rides to area seniors to conduct their essential shopping or medical

[1:19:49] advisors for frontline health care, workers, or even something else.

[1:19:56] Thank you so much.

[1:20:02] I don't think I'll do any more speaker.

[1:20:04] Yes, thank you, Mayor.

[1:20:05] At this time, I will call on speaker Ananta Narayan.

[1:20:08] If you could please, I mean, your microphone and begin your comments.

[1:20:12] Thank you.

[1:20:12] What in the longer will Mayor and the council members?

[1:20:16] I think it's really commendable that you know, we support our local business because

[1:20:21] They are job providers in our status seeking and I really appreciate the council in giving this

[1:20:29] rent a deferment to the Jaguar Lairover and I think in the agenda items you have some

[1:20:36] more corporate businesses that is in our city going to get that deferred rent payment.

[1:20:42] However, one thing, the city management gave a good report on the background of the

[1:20:51] government, but one thing I do not see is what is the impact of this government on the current

[1:20:58] budget projections? How is it going to affect us in the current financial year? You know, Ryan,

[1:21:06] If he, you know, if he has a data on that, I would like to see it on the next agenda item on the same rent

[1:21:13] deployment for the town center, and it's what is its impact on our cloud budget, because that's not being told at all.

[1:21:21] It's it's great that we are in a different rent, but we don't know how much it is going to impact us financially here.

[1:21:28] And what are all the mitigating strategies that the city has taken to do this and help the local

[1:21:36] I hope by the next agenda item explanation that data if they can attach that would be really helpful to know.

[1:21:46] What is the financial impact on this development on the city budget?

[1:21:49] Thank you Mayor, and thank you council members.

[1:21:52] Thank you.

[1:21:54] I'm sorry to be any more speakers.

[1:21:57] At this time Mr. Mayor, thank you.

[1:21:58] You can declare the public comment period closed.

[1:22:01] Okay.

[1:22:02] At the time I declare the public comment period is closed.

[1:22:04] It is no more questions from the Council.

[1:22:06] La lasca, motion on this item.

[1:22:10] Mayor, actually, I do have a question.

[1:22:12] Follow

[1:22:14] up.

[1:22:15] I have a question to staff or in Garts to more

[1:22:19] dorm in the evictions.

[1:22:20] I know that LA County is also initiated

[1:22:22] that we have to in Garts to evictions

[1:22:24] for commercials as well as residential.

[1:22:27] For that moreatorium, what's the rules for businesses

[1:22:33] in regards to we can't evict based on that and how long can that be made for

[1:22:49] Chris and you have a discussion?

[1:22:54] Yes, thank you. Under the executive order issued by City Manager Arcoji, the moratorium for residential and commercial evictions

[1:23:06] So what's designed to coincide with Los Angeles County's eviction moratorium, as well as the

[1:23:14] state of California, Los Angeles County's moratorium runs through May 31, 2020.

[1:23:21] And excuse me, don't have the executive order signed by City Manager, our glitching

[1:23:25] front of me.

[1:23:26] But I believe ours coincides with that to run through May 31, 2020, as part of that commercial

[1:23:32] those tenants for all businesses, commercial, as well as residential uses in the county, including

[1:23:39] the City of Sirito, similar to what's being proposed before you for the rent deferral, those

[1:23:45] tenants have 12 months to pay back the deferred rent in those scenarios under the eviction

[1:23:52] moratorium.

[1:23:55] Thank you. So I just want to just clarify that because more

[1:23:58] terms in place, commercial businesses, regardless if they reach out to us in partnership

[1:24:06] to work out a program, in regards to paying back the deferred grants.

[1:24:13] Even if they didn't reach out to us as a landlord, we cannot predict them during this

[1:24:20] moratorium.

[1:24:21] And based on that, we have to follow the guidelines of Elly County to the state as well

[1:24:26] our own, the same guidelines and we are following that guidelines, that's correct.

[1:24:32] That is correct. Under our more TORAM as well as the county and the state's eviction

[1:24:39] protections, the tenants would still have to reach out to the city as landlord or in the

[1:24:46] case of private businesses, a private tenant would have to reach out to the private landlord

[1:24:51] to request as well as show the inability to pay rent, and there's certain circumstances laid out,

[1:25:00] whether you've been laid off, whether you're, you know, have to take time off a work to care for somebody who has contracted the COVID-19 virus,

[1:25:09] but the burden of proof in that scenario for the inability to pay rent does lie on the tenant.

[1:25:15] and so while pensky and then the next agenda report a different city tenant did reach out to the city

[1:25:24] it applies, you know, a lot of relief for commercial tenants as well. And I don't know if city attorney

[1:25:29] Mark Seris wants to elaborate any further but Mark, do you have anything to add to that?

[1:25:37] Thank you, Mark Seris. Not on anything more to add. It is in keeping with

[1:25:46] the city,

[1:25:49] moratorium and the L.A. County is a fiction moratorium. This is

[1:25:54] a agreement reflects that.

[1:25:59] Thank you. I just want to clarify.

[1:26:07] It takes a little more question again.

[1:26:08] I will allow Mayor for the motion to approve this item.

[1:26:11] So, Mayor, can I ask a question, please?

[1:26:14] Yes.

[1:26:15] Thank you.

[1:26:20] Kristen, thank you for the

[1:26:22] Thank you for this agenda report, regarding our tenant,

[1:26:29] hence each agwar land robber's cereals.

[1:26:33] So I just wanted to confirm and feel,

[1:26:39] I wanted to feel comfortable about helping out

[1:26:44] our cereals business, our cereals business,

[1:26:48] our cereals business tenant who is going through

[1:26:51] some tough times because of the COVID-19 pandemic, that's affecting us here in our city.

[1:26:56] And according to the agenda report,

[1:27:01] I wanted to just put it simply, your agenda report

[1:27:06] informed us that this business tenant, this cerido business, they have made all of their

[1:27:13] payments on time since 2005. That correct? That is correct. So they've been paying to rent

[1:27:23] on time for 15 years and now they're asking us for some help because of they specifically

[1:27:28] said because of the COVID-19 pandemic. Correct. That is correct yes. Okay and I think it's pretty

[1:27:36] Street Street forward about the effects on our budget,

[1:27:42] it's been specifically negotiated between

[1:27:45] this business and the city that they're asking for a rent deferral, not a forgiveness,

[1:27:52] they're asking for a rent deferral, 70, 101 dollars.

[1:27:58] That's the dollar amount.

[1:27:59] I'm not sure there was a question about what is the effect on our budget and I'm confirming to you it's the July 2020 went July 2020 ran August 2020 ran in September 2020 ran

[1:28:20] That's the three months they're asking for a rent deferral from it's a total of 70,001 dollars. That's it, right?

[1:28:26] They're not asking for anything more than that in terms of dollar amount.

[1:28:29] Is that correct?

[1:28:31] That is correct.

[1:28:32] It's the period for three consecutive months July, August and September in the amount

[1:28:36] of 70,000, 101 dollars.

[1:28:40] So that's the total...

[1:28:41] Oh, excuse me.

[1:28:42] Go ahead.

[1:28:43] Okay.

[1:28:43] Thank you, Kristen for confirming that.

[1:28:47] So, you know, you clearly clearly putting that in you and Tory and art clearly putting

[1:28:55] that in this agenda report, what the terms are of this agreement, and you explained clearly

[1:29:01] the payback terms, what I understand this means in terms of our budget during the city

[1:29:07] is they're asking to defer rent that would normally have been. They're asking us to defer

[1:29:14] rent that would be in our 2020, our 2020, 2021 fiscal year budget, correct?

[1:29:23] Yes, that is correct. The deferral of the rent will affect the next fiscal year's budget 2021.

[1:29:31] So this is a budget that affects is on our 2020 2021 fiscal year budget in terms of the $70,101 in rent deferral request.

[1:29:43] And what I see that you've laid out for us clearly in the payback terms is that they could pay it back in the 2020-2021 fiscal year.

[1:29:58] or

[1:30:00] They are required to pay it fully pay it back, no later than the 2021-2021-2022 fiscal year.

[1:30:09] So, the payback is going to affect and show up in our 2020-2021 fiscal year and or our 2021-2021-22 fiscal year, correct?

[1:30:24] Yes, that is correct.

[1:30:26] And we're talking about, again, 70,000, 1,000, 1,000 dollars, no other amounts are included

[1:30:33] in the deferral, and no other amounts are included in the payback, except for the possibility

[1:30:38] of a 15% interest payment if they don't pay us back on time.

[1:30:43] Is that right?

[1:30:44] That is correct.

[1:30:46] Okay.

[1:30:46] Thanks for confirming all that.

[1:30:48] Wonderful report.

[1:30:49] Very clear.

[1:30:50] Thank you.

[1:30:54] Okay, does anyone else have questions from this item if it's not I'll bring it back with the council for the motion close to this item

[1:31:05] Okay, I'm sorry. I made two at a motion

[1:31:08] Grace

[1:31:09] Okay, motion

[1:31:10] I

[1:31:11] Outside

[1:31:13] Okay, all right, we have motion in second madam clerk. Can you please call the roco?

[1:31:18] Yes, thank you, Mayor. Can I have some member who?

[1:31:21] I

[1:31:22] Yo-kiyama?

[1:31:26] Aye.

[1:31:27] Vote?

[1:31:30] Selonky?

[1:31:31] Aye.

[1:31:32] Motion passes 4-0.

[1:31:35] Thank you.

[1:31:36] What I know, next, I know we have

[1:31:38] the new and all business.

[1:31:39] I know 90 to any manager.

[1:31:42] Remember the city council?

[1:31:43] The next item before we is 90.

[1:31:45] This is a request by the Sherrods and Sereto, so tell.

[1:31:49] For the city, forgive, and forgive excuse me,

[1:31:51] those phones some went and creases to the city.

[1:31:55] This report will give my Chris and it's you and I am totally happy to answer any questions,

[1:32:00] Thank you, Mr. Goochie.

[1:32:02] Honorable Mayor and members of the City Council of Kristen Aguilette at Man's Planning

[1:32:05] Manager.

[1:32:07] As Mr. Goochie mentioned, this is similar to the previous request by Penske Jaguar

[1:32:11] Land Rover.

[1:32:12] It's just very, very slightly.

[1:32:16] As discussed in the previous agenda item, the impacts of the COVID-19 pandemic on businesses

[1:32:21] is unprecedented and has caused for challenging times for

[1:32:26] three-to-space businesses.

[1:32:28] This also includes the hotel industry.

[1:32:30] As the council is aware, stay at home restrictions

[1:32:33] and the COVID-19 crisis has drastically impacted the hotel

[1:32:37] and travel business sector.

[1:32:39] And the Sereto Sheridan hotel has been significantly affected.

[1:32:44] In March, the city of Sereto was also approached by the

[1:32:47] Sheridan Sereto Hotel, who is a current ground-less

[1:32:50] in tenant under one of the city's ground lease agreements for city owned property located at

[1:32:55] one two seven two five center court drives. When the hotel reached out to the city, the

[1:33:01] expressed their financial concerns and requested assistance from the city as landlord for

[1:33:07] a potential rent deferral. Like the previous request this request is not for a waiver or forgiveness

[1:33:12] of rent, but rather for deferral of rent while the hotel tries to survive this pandemic.

[1:33:21] On the screen is an aerial photo of the subject property.

[1:33:26] The hotel is located within the Cerritos Town Center,

[1:33:30] directly north of the Cerritos Center for the performing arts.

[1:33:35] In 1989, the city entered into the ground lease and development agreement

[1:33:40] for the construction of the hotel on the city on property.

[1:33:44] Since the completion of the hotel and execution of the original ground lease in 1989,

[1:33:50] There have been several assignments or transfers of that ground lease, including the most recent

[1:33:56] which occurred in 2016.

[1:33:59] In 2016, Crown Jewel of Pacifica acquired the property rights and interest in the ground

[1:34:06] lease, thereby assuming all obligations of the ground lease, including the maintenance,

[1:34:11] the management, and the operation of the hotel, and becoming the new tenant under the ground

[1:34:17] lease.

[1:34:18] When the original ground lease was executed in 1989, the ground lease was set up as a long-term revenue-generating resource for the city for approximately 98 years, which will not expire until March, 2008-7.

[1:34:34] Under the existing ground lease, the city receives 33,645 dollars and 50 cents per quarter,

[1:34:44] totaling approximately $135,000 each year and ground lease rent revenue for the city.

[1:34:51] This amount is adjusted each year based on CPI and the next adjustment is in November of this year.

[1:34:57] Please note that the Lieutenant Crown Jewel of Pacifica, Sheridan Serritos has remitted all

[1:35:03] ground lease rent payments to the city of Serritos on time since acquisition of the property

[1:35:09] rights in 2016.

[1:35:12] As I mentioned earlier, in March, Crown Jewel Pacifica Sheridan Serritos hotel reached out

[1:35:18] to the city to express its concerns regarding the dire economic conditions presented

[1:35:23] by the crisis, and also to request the city's assistance as landlord and property owner in

[1:35:29] deferring ground lease rent payments in order to help the hotel withstand the difficulties

[1:35:34] brought about by the pandemic. According to studies conducted for the American hotel and

[1:35:39] lodging association, as a result of the COVID-19 pandemic, nearly 4 million employees who work

[1:35:47] in or for the hotel industry are projected to lose their jobs in the coming weeks or have already been furloughed or laid off as a result of COVID-19.

[1:35:58] In addition, as of April 8, 2020, hotel occupancies throughout the United States are currently at or below 20% occupancy,

[1:36:08] resulting in a projected revenue loss of greater than 50% for the hotel industry during the first half of 2020.

[1:36:16] And also significant loss of transient occupancy tax to UT, revenue for local municipalities.

[1:36:25] At a local level, the Sheridan Seretus hotel remains open for business, but has seen a significant impact to occupancy and patronage as a result of COVID-19.

[1:36:35] The City of Serritos has been informed that approximately 70 percent of the hotel staff have either been laid off or furloughed.

[1:36:44] Since the issuance of the stay-at-home orders daily hotel occupancy is at approximately 10 percent,

[1:36:51] with the hotel losing more than 90 percent of its hotel revenue.

[1:36:55] In addition, the hotel has closed the hotel's restaurant, bar, room service amenities,

[1:37:00] and the in-hotel Starbucks through the end of May, resulting in a loss of 100% of its food

[1:37:07] and beverage business. I'd also like to note that when Crown Jewel of Pacifica acquired

[1:37:13] the ground lease in 2016, Crown Jewel of Pacifica was required to renovate the hotel at their

[1:37:19] sole cost. As a hotel was not upgraded since construction in 1989,

[1:37:29] see if the hotel's request

[1:37:30] for rent deferral, city staff review the existing ground lease to assess the potential financial

[1:37:37] implications of providing a deferral of existing ground lease rent.

[1:37:41] And city staff has determined that the proposed rent deferral was reasonable and again

[1:37:47] consistent with the city's existing policies on residential and commercial evictions resulting

[1:37:52] from COVID-19.

[1:37:55] In light of the dire conditions created by COVID to the hotel, the city of Doritos

[1:37:59] negotiated proposed terms of a potential rent to throw with crown jewel.

[1:38:04] The proposed referral for consideration includes a deferral of six months, or two quarters

[1:38:09] rent, April 2020 through September 2020, totaling 67,291 dollars.

[1:38:20] Payback of this deferral will begin six months after the deferral, starting on April 1, 2021,

[1:38:26] and beginning on that day, Crown Jewel shall have 12 months to pay the status deferred rent.

[1:38:33] As such, all deferred rent will be required to be paid back by April 1, 2022, with no interest.

[1:38:40] If full payment is not received within this 12-month period, 15% interest will be added to that outstanding balance.

[1:38:47] Again, this is not a proposal for the city to waive rent but rather to defer the rent as an economic tool during the crisis.

[1:38:54] These terms were reviewed by Crown Jewel and its management company, continental asset management and Crown Jewel has expressed its need for such deferral and appreciation of Council's consideration.

[1:39:08] As you are aware, the Sheridan Threatus Hotel is located on city owned and controlled property, and is the city's only hotel generating transient occupancy tax COT for the city of Serritos.

[1:39:20] In addition, hotel guests pay for nice city facilities, including the CCPA and the Serito Civic Center,

[1:39:27] and provides significant sales tax revenue to the city, one hotel guest shop and dining in the city of Serito.

[1:39:34] As mentioned, this pandemic has had serious financial impacts of the city, including a lot, excuse me, to the hotel,

[1:39:41] including a loss of over 70% of staff, 90% of hotel occupancy and revenue, and 100% of its food and beverage sales.

[1:39:51] Thereby, significantly hindering the hotels ability to even remain in business.

[1:39:57] It is for these reasons that the request from crown jewel of Pacifica as tenant to defer rent payments for six months,

[1:40:03] Warren's this consideration by the City of Serritos as landlord, and effort to provide this assistance during the pandemic.

[1:40:12] Therefore, at this time, it is recommended that the City Council authorized the City Manager to provide this six-month rent deferral to Crown Jewel on the hotel,

[1:40:20] by way of a rent deferral agreement, pursuant to the terms I've discussed.

[1:40:25] This concludes my presentation. I'll be happy to answer any questions the council may have. Thank you.

[1:40:31] Thank you Christine for the report. I will have come solid there any questions. Council member here. We are quick.

[1:40:39] No, thank you.

[1:40:40] No, thank you, member Yokoyama.

[1:40:42] Yes. Thank you.

[1:40:45] I just wanted to please.

[1:40:46] I just wanted to please disclose that on April 6th, 2020.

[1:41:01] I spoke on the phone with the general manager of the Sheraton Sredo Sotel, Kent Galante.

[1:41:15] On April 6, 2020, I called him up because I wanted, because I asked to discuss with him

[1:41:27] the possibility of the Sheraton Serritos providing lodging for first responders in our

[1:41:40] area for free or at discounted rates.

[1:41:46] That was that was the substance of my phone call

[1:41:55] with General Manager Kent Galante, solely about whether the Sheraton Serritos, which

[1:42:04] consider providing housing to our first responders at free or discounted rates who

[1:42:13] felt the need because of the COVID-19 pandemic that they could not stay at home with their families.

[1:42:23] I just wanted this close that I had that one conversation with Ken Thalante earlier this month.

[1:42:29] Thank you.

[1:42:32] Mayor Brotem, what do you have any questions?

[1:42:35] No, this time.

[1:42:35] Thank you.

[1:42:36] Thank you.

[1:42:37] We will now open the public comments on this item.

[1:42:40] Madam Citigua, do we have any speakers on this items?

[1:42:45] Yes, Mr. Mayor.

[1:42:46] We have several people who have raised their hands to speak at this time.

[1:42:51] I will call on Speaker Raleigh by the Jevon if you could please unmute your microphone and begin your comments.

[1:42:59] Can I hear me?

[1:43:00] Yes, we can hear you, sir.

[1:43:03] Yeah, so it is indeed a commendable that city is making accommodations for local businesses

[1:43:12] when they are going through this difficult time.

[1:43:16] My only request is, as you know, CT generates close to 8 million in ground when demanding every year.

[1:43:32] So, this is the second business approaching CT requesting accommodation, which adds up to close to 140

[1:43:45] thousand dollars adjustments out of what I hate million in revenue, right? So my question

[1:43:54] is that things can probably get worse before everything gets back to normal. So when I

[1:44:05] look at the town center, I see that we get around 5 million from town center businesses

[1:44:11] along in rents. So what is the city's plan? If more and more businesses follow this, for example,

[1:44:22] after today's meeting, if they come to know that, okay, city accommodated to businesses and

[1:44:27] if everybody starts approaching and requesting for similar accommodation, what is the city's plan?

[1:44:33] do we have any plans saying that this is how we will determine or are we saying that we will

[1:44:43] extend the same favour to all businesses which could potentially

[1:44:51] bring shortage of millions in

[1:44:56] I'm not saying you won't get it, but what I'm saying is

[1:45:00] If we don't get this for next six months and we got wait for another one year to get it back, as mentioned by a previous speaker, this can have a significant impact to the city's financial position.

[1:45:21] given the heat, we can take on other areas, so something to consider and be ready so

[1:45:30] that we have some plan.

[1:45:35] If more businesses upload city with similar questions, that's all I have.

[1:45:42] Thank you.

[1:45:45] Madam, do we have another next speaker?

[1:45:48] Thank you speaker.

[1:45:49] Our next speaker is normal Williamson.

[1:45:54] Yes, good evening again Mayor Salonke. I'm on the same bring way as a council member of

[1:46:01] Yokogama. According to the Marriott website which operates Sheraton hotels, they say

[1:46:10] one of our core values is to always do the right thing and serve others. We feel it is our

[1:46:17] responsibility to better the communities where we do business and to enrich the lives of those

[1:46:23] around as well, this rings hollow since Sheraton has not offered any quarantine accommodations.

[1:46:31] The 244 hotel rooms of the Sheraton Fairplex in Pomona on the LA County Fairgrounds

[1:46:40] are now being used to quarantine patients with mild COVID-19 symptoms while keeping them

[1:46:47] close to home.

[1:46:49] LA County paid close to $300,000 for the use of these facilities.

[1:46:56] According to LA County Supervisor Hilda Solise, in a March 2020 press release, the Sheraton

[1:47:05] Fairplex Fairplex will be an option for San Gabriel Valley residents facing COVID-19

[1:47:12] concerns. The mic question is, how about the other LA County areas and their front line

[1:47:20] healthcare and first responders? Where do they go to quarantine in order to keep their family safe

[1:47:28] and help stop community spread? I have a close family member in law enforcement who got exposed to

[1:47:36] at 19 at work. All he could do was quarantine himself in his garage, but he still had to

[1:47:45] share the bathroom with his four young children and his wife, who is immunocompromised. His quarantine

[1:47:53] could have been more successful if he could have had access to a hotel room apart from his family

[1:48:00] residents.

[1:48:04] So once again I urge the council that before signing the rental deferral agreement

[1:48:11] I'm sure you're all going to agree to it but before signing it could you please include some sort

[1:48:17] of conditions.

[1:48:21] So maybe they could offer some sort of service or a product to help our community

[1:48:28] with this pandemic. This could be a condition for receiving a rental agreement. Perhaps at least

[1:48:36] 20% of their 23 hotel rooms for quarantine purposes to local first responders and health care workers.

[1:48:47] As an aside, if this hotel facility is not used for quarantine sheltering,

[1:48:52] How about the empty medical building at 1835-1 Bloomfield Avenue that used to be an F-H-P medical

[1:49:03] center and is kitty corner to that city council and is kitty corner to the city hall?

[1:49:10] As you know, Serritos, COVID numbers are increasing every day.

[1:49:15] We are now at 46 cases, neighboring cities like Norwalk, they have 146 cases, and our

[1:49:24] T-Shahast 12, so readers need some sort of quarantine shelter for its first responders.

[1:49:33] Maybe the Sheraton could lend their beds and furniture to a newly converted sheltering facility

[1:49:39] for first responders and health care workers.

[1:49:42] I am positive that this is only the beginning of the floodgates opening on rental deferral

[1:49:50] request that the city will receive.

[1:49:53] The city's compassion towards commercial tenants should not be abused, and the business

[1:49:59] community should voluntarily offer some sort of compensation that helps the local area fight

[1:50:07] this deadly virus.

[1:50:08] If not, the city has the responsibility to its residents to require some sort of in-kind

[1:50:17] donation, in exchange for its rent, deferral agreements.

[1:50:24] Thank you so much.

[1:50:28] Thank you.

[1:50:33] This is a private business and we are the land, I mean, there are ten and under the ground

[1:50:39] leads is in a private business can city enforce them to rent to the or do they have to

[1:50:48] decide themselves or we can tell them that they have to rent it to fuzz this wonder.

[1:50:53] I'm not sure about the forcing Mr. Mayor but we certainly couldn't negotiate with him and

[1:50:57] ask them to participate in a positive manner so that we can certainly do is release the forcing

[1:51:04] I defer that to the city attorney.

[1:51:07] Also, this is the, this is the media, but they don't own 2003 hotels.

[1:51:11] This is the franchisee, which is about this one location, correct?

[1:51:15] Yes sir, this gentleman was one of two hotels, a small one in this big one.

[1:51:20] And this is his, and he's franchiseed through the shirts and corporation.

[1:51:25] And I know the one on a fairground debt land is owned by Los Angeles County, correct?

[1:51:32] Most of the fairgrounds are owned by the county, yes sir.

[1:51:36] I think that seroton is, it's in the ground of the L.A. county, so it's easier for L.A.

[1:51:41] to be a little serotonous in the landlord.

[1:51:45] Could we do the same thing?

[1:51:46] I don't know, can we ask Mark, would it be possible to talk to the management and see if they can agree to rent to the first responder or the nurses or doctors who are looking to...

[1:51:56] We can certainly ask that question. Absolutely. It's the second part of the question,

[1:52:00] demanding is the issue that needs the legal interpretation.

[1:52:04] Mayor, if I can interject for a second. I'm sorry.

[1:52:10] If I can comment roll, roll for it.

[1:52:13] Let me let Mark answer the question first.

[1:52:17] Thank you, Mayor is Mark Starris. The powers to use facilities such like the hotel rest with

[1:52:26] county in the Lake County Department of Public Health.

[1:52:33] So the county has a power we don't have much to live it is on it.

[1:52:37] Well I don't know about the leverage but as far as just enforcing as a requirement those

[1:52:45] powers are at this point with the county in the Lake County Department of Public Health.

[1:52:50] Yeah and I know the state and the county is deciding which location can accept the

[1:52:58] and who can accept the COVID-19 patient.

[1:53:03] I'm also personal hotel years and I have signed up my three hotels with the county

[1:53:08] and the state and it's, you know, they're the one who can make a decision that which hotel they're going to select

[1:53:16] for their first responder or the patients or for the one for the homeless.

[1:53:22] So, you know, there are 15,000 hotels right now have signed up for this program.

[1:53:27] And thank you very much, Monica.

[1:53:29] Mr. Wood, do you have any questions?

[1:53:32] I'm actually, I just want to share a comment.

[1:53:33] I was going to wait until the comments were over,

[1:53:37] but since the question came out, I just want to let you know that I actually was also in contact with the owner of the shirts in today.

[1:53:44] And he said that he would be interested in offering discounts to first responder.

[1:53:48] I was going to wait to the end, but since that question did come out.

[1:53:52] City Manager, Art Gullucci, I was going to share that with you today, and let you know that you should contact the owner.

[1:54:00] I think the name is Andrew, and he's willing to have discussions and regards to you offering a discount to the first responders.

[1:54:07] Mayor, pretend I do know the owner and I sure will get in contact with him.

[1:54:13] Okay, Madam Clerk, do we have a more speaker on this item?

[1:54:17] Yes, Honorable Mayor, we have one more speaker, Daisy Lagasca. If you could please unmute your microphone and begin your comments.

[1:54:25] Hi good evening again. I am on nurse myself and I have, you know, I'm a single mom.

[1:54:35] So, where I work, they usually get the hotel that's near the hospital.

[1:54:43] But since, you know, I have three minor kids. I cannot stay there rather than I prefer to stay in Sharatan.

[1:54:53] So, if you guys were going to do something about it, I would, you know, I'm sure there are more

[1:55:02] frontlineers who live in Serritos who are, you know, appreciates for, if in case you guys can do something about us

[1:55:11] and we will be going to stay in there rather than stay in our own house.

[1:55:19] Thank you very much.

[1:55:22] Thank you. Madam, do we have any more speakers?

[1:55:27] At this time, Mr. Mayor, we have no more public speakers, and you can declare the public comment period closed.

[1:55:33] Okay, this is a particularly public comment period closed.

[1:55:36] Any councilor, there's a question, I'll start with a councilman, you.

[1:55:40] Thank you, Mayor.

[1:55:41] They may say something,

[1:55:47] if you were in hotel business, you don't know how much your business

[1:55:51] was heard.

[1:55:53] Think about a 90% occupancy rate rate across.

[1:55:59] You know, we are very lucky, I was sure the hotel still kept their door open.

[1:56:04] It, you know, they probably posted the hotel, they, they would say more money, but imagine

[1:56:12] if ceritos shirt and hotel closed, that would be bad in, you know, a thing for the city.

[1:56:21] And every year, city got the room tax from shirt and hotel, I think, at least over $1 million.

[1:56:31] right now they have the difficult time. Very, very difficult time. You cannot be there. I have a hotel. I have two hotels.

[1:56:42] You cannot be there, but you know, just, just, you know, very, very bad.

[1:56:50] We are thinking about losing a million dollars every month, think about that.

[1:56:57] So, right now, they only asked for 67,000 before, you know, rent, and they tried everything

[1:57:09] they could.

[1:57:10] Actually, and these have to know, I refer them a hospital to call, so they may send their doctors

[1:57:17] and nurses to stay in Sheridan Hotel, but the lady, the speaker, just making about

[1:57:26] the city to have the hotel, these to our residents, I think you should talk to your

[1:57:41] your, your administrator, your hospital people, they do have this program, so if you like

[1:57:50] to stay in a hotel instead of going to home, so you may call that, I know many many

[1:57:56] hospital. They do this. Yeah, I have a count. They send about 30 to 50 doctors and nurses

[1:58:05] to my hotel every night. So, but not a CTT cannot help. So, but now, in this a difficult

[1:58:12] time, I think we should, you know, approve this request from the Cerido Sheridan hotel and

[1:58:19] Also, we try to find the ways to have them to have a more business, so they will be very, very appreciate.

[1:58:29] Thank you.

[1:58:34] Thank you.

[1:58:36] Councilman Jopriyama.

[1:58:40] Yes.

[1:58:40] Thank you.

[1:58:43] Yeah.

[1:58:43] Thank you.

[1:58:45] Councilman for.

[1:58:46] Councilman for grace.

[1:58:48] For putting.

[1:58:50] Putting into perspective of how we have.

[1:58:54] how we have this synergistic relationship with our one hotel in our city, the Sheraton Serritos,

[1:59:03] and you know you put it into perspective because while they're asking us for a rent

[1:59:24] is the fact that the Sheraton Serritos normally provides us over $1 million a year in

[1:59:36] PLT revenue, transient occupancy tax revenue, over $1 million a year.

[1:59:43] So every month we're getting over $100,000 in transient occupancy tax revenue over

[1:59:51] 6 months, we're getting over 600,000, we're getting about 600,000 and transient occupancy tax revenue.

[1:59:58] That's why we need to...

[2:00:00] Work with this very important business in our city and help them whether the storm, help them whether the storm of this COVID-19 pandemic, because while they're paying us about 34,000 a quarter, 67,000 every six months, they're paying us about a 133,000 in rent a year.

[2:00:28] We, because of them, because of the Sheraton Serritos, we are getting over $1 million

[2:00:35] around $1.2 million last I remember.

[2:00:39] We're getting about $1.2 million every fiscal year from the Sheraton Serritos because

[2:00:45] the transit occupancy tax revenue for our city.

[2:00:49] So that's why I'm glad that they're communicating with us, we're working with them, we're

[2:00:57] the weather to start together of this COVID-19 pandemic, our city and their hotel because

[2:01:03] year after year in the future, we're hoping to continue to get that 1 million plus per

[2:01:12] year in transit occupancy tax revenue.

[2:01:16] So that's why I'm glad that we've reached an negotiated plan for rent deferral and payback.

[2:01:27] with the shirts and cereals.

[2:01:29] Thanks again, Council Member Grace, huh?

[2:01:32] You're welcome.

[2:01:44] I'm sorry, Mr. Mayor.

[2:01:45] We were unable to hear your comments.

[2:01:49] I'd met for a time while.

[2:01:52] Yes, thank you.

[2:01:53] I just wanted to comment.

[2:01:55] That's the fact that people, I think, during this time,

[2:02:00] everybody's heard and business is residents.

[2:02:04] Everybody's feeling this crisis.

[2:02:06] And one of the things that we have to understand is,

[2:02:08] And we are a sales revenue generated city because we're in no low property tax.

[2:02:13] So those revenue is very important, including that.

[2:02:16] And we've been mentioned already.

[2:02:17] I'm not going to repeat it.

[2:02:18] But our hotel brings in the Fed tax for our city.

[2:02:23] The problem is we are not good landlords and we don't support our local businesses.

[2:02:29] These business may in fact go out of business and not return.

[2:02:32] So it's important that we are good landlords.

[2:02:35] And I hope that we are setting an example for all the landlords in the city.

[2:02:38] to say that we got to make sure we help out the local businesses so that way they can

[2:02:43] weather this storm and come out of it and be successful again so I want to

[2:02:49] just commend the city staff for doing what they can to make sure our

[2:02:53] businesses are intact after this but also I want to commend the owner of the

[2:02:58] Shirt and Andrew Mr. Changs that he's willing to offer discounts to the

[2:03:04] the first responders to help out the community and that goes a long way and I am ready to make a

[2:03:11] motion to approve this because I think truly we need to help our local businesses and in fact

[2:03:16] if any business that is affected with COVID-19 we have an obligation to help and I think

[2:03:24] every landlord should and in a long run I think we'll all make it out together and we need to be a

[2:03:36] I just want to clarify, I'm in hospitality business, but I do not own hospitality or hotel

[2:03:43] in Los Angeles County, and I don't own anything in serators, and I know Councilman

[2:03:48] Hue does not own hotel in serators, so both are not in serators.

[2:03:53] So I know the hospitality has taken a toll, and we are working with counties and cities to

[2:04:01] if we can help any patient,

[2:04:05] the first responder, doctor, nurses,

[2:04:07] and we're all doing everything we can to help them and support them.

[2:04:10] But I think this is a good proposal that we're not waving it.

[2:04:15] We're just differing it.

[2:04:17] And I know there's already a motion.

[2:04:19] I'd like to see if we get second on this, on the motion.

[2:04:24] I second.

[2:04:25] Okay, a motion.

[2:04:26] Madam Clerk, can you call a roll call?

[2:04:29] Thank you, Mr. Mayor.

[2:04:30] Council members, who?

[2:04:33] So long to you?

[2:04:35] Aye.

[2:04:36] Bo?

[2:04:37] Aye.

[2:04:38] Yoke Yama?

[2:04:41] Aye.

[2:04:42] Motion passes 40.

[2:04:45] Next item we have is the under a new and old business item 9A.

[2:04:50] The Ecology can we get report on this?

[2:04:54] Yes, Mr. Mayor.

[2:04:55] Madam members of the council.

[2:04:56] The next item we have 10 items on the under 9A.

[2:05:00] The first one you'll be hearing from this evening is a discussion by our city attorney's related to restricted and unrestricted funds

[2:05:08] that the city has and how that you can use these funds. That's the council recall.

[2:05:13] This is one of the questions asked by council at our last meeting and this is brewed presented to see me by our city attorney

[2:05:20] Then we'll move on to the other ones. Mark the mayor and city council. Mark stairs city attorney

[2:05:29] the state of general fund reserves are found in the general fund. Plus, there are several other

[2:05:38] funds identified for specific businesses that make up the general fund reserves. The question

[2:05:45] of the way is whether those specified funds are legally restricted for identified specific

[2:05:51] uses, or are they unrestricted, and the city council has the authority if they so choose

[2:05:59] to use those dollars for general fund purposes?

[2:06:04] The answer relies on whether a fund is legally restricted depends on the sources of the funds.

[2:06:13] And any restrictions on those funds going into that specific use.

[2:06:22] So at the April 20th meeting, special meeting, the council inquired about three of the funds.

[2:06:27] The Art and Public Places Fund, the CCPA Fund, and the Equipment Replacement Fund.

[2:06:35] The Art and Public Places Fund was created when the city created the Art and Public Places Program

[2:06:42] And that requires that certain development projects, with building valuations of 250,000 or more,

[2:06:51] must either pay 1% of that project valuation into the Art Fund, or donate artwork public artwork that's valued at that same amount.

[2:07:06] The program that was adopted by City Council states that the fees in the art fund shall be used

[2:07:11] solely for the acquisition, installation, improvement, maintenance, and insurance of art work.

[2:07:20] So as the art fund was created for a specific purpose, and the municipal code provides

[2:07:26] the scope of the use of those funds, the art and public places fund is a restricted use fund.

[2:07:35] The Equipment Replacement Fund was created many years ago and it's basically a savings account identified

[2:07:42] who were replacement of equipment over the years as they were out.

[2:07:50] The money is in the Equipment Replacement Fund, who are transfers from the general fund.

[2:07:57] As the Equipment Replacement Fund is completely funded with those transfers from the general fund,

[2:08:02] The equipment replacement fund is unrestricted and the City Council has the authority to use funds in that and the equipment replacement fund for general

[2:08:12] fund purposes

[2:08:15] And finally the CCPA fund

[2:08:18] As you know that was created to support the CCPA and its expenses

[2:08:24] That's the most complex of the funds because the source of the CCPA fund is

[2:08:31] of donations that citizens and residents and others made directly to the CCPA for CCPA purposes

[2:08:43] and it's made up of general fund transfers. Therefore the money and the CCPA fund that came from donations

[2:08:51] things is restricted for CCPAU so however the funds that came from general fund transfers

[2:08:59] and the CCPA fund may be used by the City Council for other general fund purposes.

[2:09:09] Is my understanding that we do know what portion of the fund is from donations and what

[2:09:14] from transfers. I do not have that specific information at this time.

[2:09:21] And that concludes my staff report.

[2:09:25] Thank you.

[2:09:27] Next we have is a.

[2:09:29] The question was we got into open go.

[2:09:43] Thank you.

[2:09:44] Good evening. Mayor and members of the city council.

[2:09:48] Aaron Benjamin information technology manager.

[2:09:52] The open gove.

[2:09:54] The open gove software.

[2:09:55] platform is an open data portal intended to enhance communication and transparency related to

[2:10:02] the city's financial activity. In 2016 at the direction of the city council, the city acquired

[2:10:09] the software to complement the financial review processes by providing an analytical reference tool.

[2:10:16] The portal currently provides four financial reports with accompanying graphical visualizations

[2:10:22] offering unfiltered activity data for complete transparency.

[2:10:29] The software interactive analytical portal that provides users

[2:10:32] the ability to apply and remove filters,

[2:10:35] soar in export data according to the user's research preferences.

[2:10:40] As with any data analytical tool,

[2:10:42] the resulting information may require contextual reference

[2:10:45] and interpretation that can present challenges.

[2:10:49] For example, the combined financial program referred to as the budget includes the city's

[2:10:55] approved capital improvement program.

[2:10:58] Yet, those budget values are not represented within the open-go portal due to software

[2:11:02] integration challenges.

[2:11:05] Timing and delays of some revenue and expensive activity requires that adjustments be made to

[2:11:10] recognize activity within the appropriate fiscal year, where the budget is a working print

[2:11:17] document, the open-go portal is constantly updating as activity occurs, presenting data entry,

[2:11:24] timing, and synchronization challenges. In reviewing the reports, the annual report provides

[2:11:33] a comparison of prior fiscal year actual revenues and expenses to the current fiscal year adopted

[2:11:40] amended and amended budgets. The default report configuration displays expenses, grouped by

[2:11:47] Department, including all funds, departments, and expense types.

[2:11:52] The current year report provides a comparison of fiscal year actual revenues and expenses

[2:11:57] displayed as cumulative monthly totals compared to the fiscal year adopted and amended budgets.

[2:12:04] The default report configuration displays expenses by expense type for the current fiscal year,

[2:12:10] including all funds, departments, and expense types.

[2:12:15] The check activity report provides line item invoice activity as represented by the register of demands provided to the city council each regular meeting.

[2:12:25] The default report configuration includes a graphical representation of invoice transaction amount, grouped by city departments, filtered for accounts payable invoice activity.

[2:12:36] The budget milestones report provides a comparison of fiscal year approved and amended budgets.

[2:12:44] The default report configuration displays revenues versus expense activity for all departments,

[2:12:51] revenues and expenses, excluding successor agency funds. During the April 20 2020 special meeting,

[2:13:09] As highlighted on the screen consists of capital asset expensive activity related to improvements, machinery and equipment, furniture, fixtures and office equipment, motor vehicles, land and worksmark.

[2:13:24] The $5.2 million display deficit is a misrepresentation of expensive activity compared to the city council approve capital outlay budget.

[2:13:35] The Mr. Presentation results from a challenge in integrating the city's project accounting

[2:13:40] software module that maintains and controls capital project budgets. Therefore, to gain an

[2:13:46] accurate picture it requires the addition of the city council approved capital improvement program

[2:13:51] budget of $15.2 million dollars. In the displayed capital outlay budget of approximately $1.4 million.

[2:14:00] The resulting calculation represents approximately $10 million of unspended capital equipment and projects.

[2:14:12] Additionally, Mr. Slunky inquired about a $4 million current year deficit in the other expenses category.

[2:14:18] The other expenses category consists of non-departmental expense activity, including interest, administrative, and depreciation expenses.

[2:14:26] The representative deficit largely relates to successor agency expensive activity for general obligation bomb payments.

[2:14:34] Staff has identified that this deficit can be adjusted by recognizing the city council approved budget for successor agency revenue and expensive activity.

[2:14:54] The operations and maintenance category consists of expensive activity related to the management and operation.

[2:15:00] Of community-funded programs and services, not completing labor expenses.

[2:15:06] Examples of these activities include police and safety services, professional services, general liability insurance,

[2:15:13] senior center recreation and library program expenses and supplies, and water well-pumping.

[2:15:19] The represented $17.5 million of unspent funds is representative of the City Council approved

[2:15:26] essential resources to support required and contractually obligated fiscal year expenses for

[2:15:32] the previously mentioned operating activities.

[2:15:35] One example of contractually obligated operating activities is the remaining two payments to

[2:15:41] the Los Angeles Sheriff's Department for Police and Safety Services.

[2:15:47] staff respectfully recommend that the City Council review and consider the information provided in this report and direct staff accordingly.

[2:15:55] This concludes my presentation.

[2:15:58] City Manager, Budget Manager, Finance Manager, and I are available for any questions.

[2:16:01] Thank you.

[2:16:06] Sorry.

[2:16:07] Thank you very much.

[2:16:08] I don't put the report.

[2:16:10] I forgot to ask the Council for the first item.

[2:16:14] If any of the council of the question on a general fund regarding the district data and

[2:16:19] an unrestricted fund, I'll start with a council on a few, did you have a question on that item?

[2:16:24] Well, not yet.

[2:16:25] Thank you.

[2:16:28] Council member Yokoyama?

[2:16:33] No, thank you.

[2:16:35] Council member Wolfe?

[2:16:37] No, thank you.

[2:16:39] And then the second item, just, and then just finish on these, uh, uh, uh, some of the questions

[2:16:46] that I asked.

[2:16:47] We got an open go transparency portal, uh, there's any of the council at the question on their

[2:16:52] item.

[2:16:59] Uh, all right.

[2:16:59] We'll go next to the, uh, uh, uh, projected and loss of enterprise, uh, fund by Ryan.

[2:17:08] Yes.

[2:17:08] Uh, thank you, Mayor.

[2:17:09] And members of the city council, uh, tonight I'm going to be recapping a little bit of a

[2:17:15] For the benefit of our community who may not have seen it at that time and to refresh the council on a couple of important points and then I'll be providing an update on the status of the city's enterprise funds

[2:17:27] I'd like to begin by mentioning that as we move forward through these unprecedented days and working the best interest of the city to identify the steps that need to be taken as we move forward

[2:17:37] We've been working to prepare a budget for the upcoming fiscal year that incorporates as much information and data as possible

[2:17:43] to help us understand just what and how much of an impact the COVID-19 outbreak will have on the

[2:17:49] city. As part of that effort, we're working to provide the council with as much up to the minute

[2:17:54] information as we can to help you in considering the important policy decisions you're facing. Today I'd

[2:18:01] like to provide you with a snapshot of the city's current fund balances as reflected in our

[2:18:06] treasures report. I'll also provide you with a quick overview of some current sales tax

[2:18:10] information and an update on the city's current expenses related to our COVID-19 response

[2:18:16] as well as an overview of the lost revenue that we've incurred through the closure of

[2:18:20] our facilities and the cancellation of various programs, events and classes, and then I'll

[2:18:25] close with an overview of our enterprise fund activities. And so for that presentation, I'll

[2:18:32] direct your attention to the screen.

[2:18:36] This first slide is a copy of the Treasury Report

[2:18:38] As of March 31st, you saw this on Monday, you do have an unrestricted general fund reserve

[2:18:45] balance of $71 million, total reserves, including all restricted funds of about $110 million.

[2:18:53] These balances are a snapshot in time.

[2:18:56] It is likely that our fund balance will fluctuate between now and the end of the fiscal year.

[2:19:01] And it's difficult for us to provide you with an absolute or a more refined figure because

[2:19:06] We simply have not completed a lot of the work that needs to be done to finalize our fund balances

[2:19:12] and complete the preparation of the budget.

[2:19:15] However, we are confident that the city will end the fiscal year with a robust general fund

[2:19:21] reserve and a neighborhood of $70 million.

[2:19:25] The next slide discusses the impact that the closure of so many of the businesses in

[2:19:30] This reto's has had on our projected sales tax performance.

[2:19:35] They've been provided through the hard work of our sales tax consultant HDL.

[2:19:39] This is quite obviously a very fluid situation and a lot is unknown about how long quarantine

[2:19:45] requirements will remain in place.

[2:19:48] Further, the long-term impact on consumer confidence in the amount of disposable income available

[2:19:54] with the economy is very difficult to quantify.

[2:19:58] Accordingly, the estimates provided by HDL should be considered with the very significant

[2:20:03] caveat that these projections have been developed in the face of completely unprecedented

[2:20:08] times and with very limited information on current sales tax performance due to very

[2:20:14] rapid onset of the COVID-19 response and the virtual complete shutdown of all non-essential

[2:20:20] businesses and commercial operations.

[2:20:22] In other words, these projections are HDL's best estimates, and they're intended to provide

[2:20:28] a starting point as we move forward, and it is very likely that these estimates will

[2:20:33] continue to be adjusted and refine as more information is available.

[2:20:38] With that, we are anticipating a reduction in sales tax for the current fiscal year of about

[2:20:43] $3.3 million.

[2:20:45] The original projection for the current fiscal year was $34 million, whereas the revised projection

[2:20:52] that we received out of Monday was $30.7 million, and again, not represents a 9.8% reduction

[2:20:59] in an overall reduction of $3.3 million.

[2:21:03] As we move into the upcoming fiscal year, HDL provided us with an original projection of

[2:21:09] $35 million back in January, and that's the number that we used as we began to build the

[2:21:14] budget for the 2021 fiscal year.

[2:21:17] That figure has been revised down to $30.6 million and that represents a 12.6 million

[2:21:25] to our percent reduction over that original projection and an overall reduction of $4.4 million.

[2:21:32] I'd like to note that staff continues to work very hard to address potential impacts

[2:21:37] associated with COVID-19 and as we've worked through this process we've been able to identify

[2:21:42] that reductions that have been made in both the mid-year budget for the current fiscal year and in

[2:21:48] the upcoming 2021 budget will help to at least partially offset the sales tax revenue losses

[2:21:54] that I've mentioned. Specific details on those reductions will be presented to the council

[2:21:59] with the budget study session that's coming in the next month. On the last slide that I have

[2:22:05] simply provides information on both the expenses, the city's incurred as part of our COVID-19

[2:22:10] response as well as the revenues that have been lost as the result of program and event

[2:22:16] cancellations.

[2:22:17] As it relates to revenue, to date the city's lost about $1.2 million in revenue.

[2:22:24] That would have otherwise been collected through ticket sales at the CCPA, facility rentals,

[2:22:29] and program and class registration.

[2:22:32] And on the expense side, as you can see, we've encouraged us to over $40,000 in expenses.

[2:22:36] And that amount is obviously continued or anticipated to continue to increase in the weeks ahead.

[2:22:43] It's important to note that the expenses listed here do not include any staff time at this point and relate solely to items and equipment that have been purchased to help the city provide the necessary materials that are required to support our response.

[2:22:59] Moving on to our enterprise fund balances, unfortunately, I don't have a slide for this item but I would like to provide you with a brief update on the status of the city's enterprise funds, which encompass our water, sewer, reclaimed water and electric utilities.

[2:23:17] Of these four utilities, the water, sewer and electric utility funds operate at an annual deficit.

[2:23:23] The reclaimed water fund is able to offset its operations and maintenance costs through its revenue generation and is able to maintain a modest surplus.

[2:23:34] In order to offset annual operating losses, the water, sewer and electric utilities require a subsidy from the general fund in the form of the loan.

[2:23:43] To date, including estimated loans made during the current fiscal year, the general fund is provided a total of 44.9 million dollars in loans to these operations.

[2:23:55] Now, as the Council is aware, the city's work to address the water and sewer rate deficiencies through annual 10% rate increases that began in 2015, and that will sunset in the upcoming fiscal year.

[2:24:07] For the water utility, the rating creases have succeeded in reducing the amount of general

[2:24:13] fund subsidy that is required to offset our operating losses.

[2:24:18] Over the current fiscal year, the estimated loan is approximately $380,000.

[2:24:24] With the final rating crease which will be implemented this July, the water utility is expected

[2:24:29] to generate sufficient revenue to offset its operating costs and potentially operate in

[2:24:34] the black.

[2:24:35] However, with the conclusion of the water rate increase implementation, it is expected that the water

[2:24:41] utility will again soon require a general fund subsidy in future years as there are

[2:24:47] no provisions to implement CPI adjustments in order to keep pace with the continued escalations

[2:24:52] of cost moving forward. It's also important to note that to date, the rating increases have not

[2:24:58] come close to providing funds for infrastructure maintenance or to begin repayment of the outstanding

[2:25:04] loan balance of $10.2 million dollars. We are concerned that without a fee structure that

[2:25:10] accurately reflects expected operating and maintenance expenses, the water utility will continue

[2:25:15] to operate at a deficit and will continue to require a general fund subsidy to offset operation

[2:25:21] and maintenance costs. Similar to the water utility, the city's suitor utility operates at an

[2:25:34] For the 1920 fiscal year, the utility is estimated to require approximately $950,000 in loans from the general fund to maintain its ongoing operation.

[2:25:46] And with the incorporation of that loan for the current fiscal year, the balance of the sewer fund loan with the general fund is estimated at $9.7 million.

[2:25:58] Finally, our electric utility is unique and different from the water and sewer utilities and

[2:26:04] that it's limited in its scope of service and in the manner of which its rate schedules

[2:26:08] can figure. As the council is aware, the utility is limited to serving commercial and

[2:26:14] public customers and is not currently permitted to serve residential customers. In addition,

[2:26:20] the utility provides electricity to its customers out of 5% discount over the rate offered

[2:26:25] by Southern California Edison.

[2:26:28] Further, the operation of the utility and its fiscal performance is impacted by the long-term

[2:26:33] debt that was incurred from the construction of the Magnolia Power Plant.

[2:26:37] Despite these factors, from a strictly operational perspective, in terms of direct expenses,

[2:26:43] versus revenue, over the past several years, the utility has operated at or near-break

[2:26:49] However, when bond debt and capital depreciation expenses are considered, the utility does not generate enough revenue to offset all of its expenses.

[2:26:59] For the 19-20 fiscal year, the utility is expected to operate at a deficit of about $1.7 million.

[2:27:07] The deficit is offset roughly evenly through an $860,000 reimbursement that the city receives through the last and final rocks process,

[2:27:16] and an 858,000 subsidy from the general fund.

[2:27:21] The outstanding loaned at the electric utility

[2:27:23] owes to the general fund,

[2:27:25] totals approximately $24.9 million.

[2:27:28] A staff continues to recruit additional customers

[2:27:31] to the electric utility.

[2:27:33] The operating deficit is expected to be reduced.

[2:27:36] However, it remains unlikely under the current model

[2:27:39] that the city will be able to generate sufficient revenue

[2:27:42] through user enrollment to begin repayment

[2:27:45] of the outstanding loan balance.

[2:27:48] So that concludes my component of the presentation.

[2:27:51] I'll pass it on to Patricia for an overview

[2:27:53] of some human resources issues,

[2:27:55] and we'll be happy to answer any questions at the end of the report.

[2:27:59] Thank you.

[2:28:03] Thank you.

[2:28:04] I am for the report.

[2:28:07] At this time, I will call for President

[2:28:09] the Council of the question council room.

[2:28:11] I'm a deal.

[2:28:12] Do you have a question on this item?

[2:28:14] Well,

[2:28:17] not right now because I think we should

[2:28:22] have this report prior to the meeting,

[2:28:28] so far the report is very, very clear, so

[2:28:32] but we probably will figure out how can we balance our 2020 to 2020 first budget.

[2:28:42] So I think important thing is we have to make this session, which area we have to cut the expenses.

[2:28:55] So that would be very detailed and that would take a lot of time.

[2:29:02] So I appreciate this report.

[2:29:04] It's very clear.

[2:29:05] Yeah, I think the staff would make a very wonderful report for us.

[2:29:12] to give us some information, so we will discuss when we have a budget meeting that will help

[2:29:24] very helpful.

[2:29:26] Thank you very much.

[2:29:28] Thank you.

[2:29:28] Councilmember Yokuyama, do you have a question on this?

[2:29:33] Thank you.

[2:29:36] Ryan, thank you for this clear report on the update on the status of the city enterprise funds.

[2:29:45] And thank you again for giving us the perspective we need Orion on these enterprise funds.

[2:29:56] Looking forward at the future of Serritos.

[2:30:01] The financial reality we're facing combined with the effects we're feeling from the effects that are city, the feeling from the COVID-19 pandemic.

[2:30:14] The background you gave us on the first page of this agenda report really, again, puts it in perspective and that third paragraph on your background.

[2:30:24] You said, it is standard practice within the public utility industry to charge customers

[2:30:31] a rate that is sufficient to cover operating costs and provide for infrastructure maintenance.

[2:30:39] And then you pointed out that in serritos, the opposite is true.

[2:30:47] And the reality is we have to face this sooner than later if not now.

[2:30:56] And again, thank you, Ryan, and thank you, Art, for making this presentation during tonight's

[2:31:04] City Council meeting.

[2:31:05] It's very illuminating and it's a very serious, serious issue.

[2:31:10] Thank you, Ryan.

[2:31:12] Welcome.

[2:31:13] May I have a question?

[2:31:15] Yes, thank you, Mayor.

[2:31:18] I just had one question, actually, one question, I ask two questions or one question,

[2:31:22] one comment.

[2:31:23] But in regards to the enterprise fund sewer rates,

[2:31:27] the city's been subsidizing the sewer rate for residents,

[2:31:31] every since the redevelopment climate now,

[2:31:34] we don't have that anymore.

[2:31:36] And we just clarify how much if we were to consider not subsidizing

[2:31:42] the sewer rate, how much on average if a resident

[2:31:45] worked to pay for sewer rates, how much that would be a month.

[2:31:50] Well, that's a difficult calculation

[2:31:53] that I do not have at my fingertips, however, for a little bit of perspective, I can give you

[2:32:01] a little bit of information here. Our current cost to operate the sewer utility is a little

[2:32:07] over a million dollars for the current fiscal year. Our revenue projections, which are

[2:32:14] based solely on the revenue that we derive from user fees and user rates, is just under $90,000.

[2:32:21] So that leaves us with a $953,000 shortfall and if it's just some real basic map, essentially

[2:32:33] user fees account for about 15% of the total revenue that's required to operate the sewer

[2:32:40] utility and the city is subsidizing an additional 85% of the sewer utility operation.

[2:32:48] And so it is expected, if we were to adjust user fees,

[2:32:54] there would obviously be a significant potential correction

[2:32:57] just to get us to a break-even point.

[2:33:03] Thank you.

[2:33:04] If we were to address this again in the future, hopefully we can figure that out.

[2:33:08] So we can also make an educated decision to possibly move away from the subsidies

[2:33:14] and bring us back to where we should be with those rates.

[2:33:20] And then also, you had mentioned about the, you know,

[2:33:23] like the regular technical and power plant.

[2:33:25] Under the current model, we're projected not to make a profit.

[2:33:30] However, if there's another agenda item that's coming forward in Garza,

[2:33:33] Garza, we will be hopefully be conducted in a different model moving forward.

[2:33:40] And so I just want to just clarify that and look forward to that agenda item.

[2:33:44] Thank you.

[2:33:48] Thank you, Mr. Walker.

[2:33:50] Ryan, I had a question.

[2:33:51] And do we have a survey of other cities, what other cities, charge in the water, sewer and

[2:33:58] utility around that city or city?

[2:34:02] Because I remember last year when we had a phone group, came out for a giving us the

[2:34:08] audit report and one of the auditor said that we are the only city who are subsidizing

[2:34:16] these enterprise businesses, where they mentioned particular

[2:34:19] city was other wine, that they have a huge surplus on the

[2:34:23] enterprise business. So do we have a survey of other cities,

[2:34:28] what other cities charges on this, each items?

[2:34:32] We don't have a current survey. There have been surveys that we've

[2:34:36] completed in the recent past within the last five years and

[2:34:41] And almost without exception, the city's user fees are among the lowest of any utility in

[2:34:50] the region as it relates to both our water and sewer rates.

[2:34:54] So we would need to go back out and do an updated survey just to kind of get caught up

[2:34:58] on where we're at as it relates to fees in the region, but I do know that within the last

[2:35:03] five years we've done some surveys that have shown that we are among the lowest in the

[2:35:08] region.

[2:35:10] So, great that we're charging the lower to our residents and you know it's benefiting

[2:35:14] our community and our residents, but at some point we have to decide that we don't

[2:35:20] want to make a profit but at least to offset the expense, whatever the income expenses

[2:35:25] so we could not be subsidizing year after year, so I really like to see if the staff can

[2:35:30] go out and survey and you know during the budget study we need like Mr. Warsaw we need

[2:35:35] look at this and decide and you know get some education to our city councils to where we

[2:35:40] are and where we got to go.

[2:35:46] Mr. Mayor. Okay, we concurrence will certainly do that staff report.

[2:35:50] Thank you, Art. Okay, there's no more question on this item. We'll move on to next item,

[2:35:56] which is the for people by Patricia Salary and Employee Information.

[2:36:06] It evening Mayor Salonke and members of the city council.

[2:36:09] On Monday City Council directed staff to provide employment information as it relates to cost savings.

[2:36:16] I would like to begin by directing your attention to the first slide regarding full-time vacancies.

[2:36:22] As mentioned on Monday, currently there are ten full-time vacant positions.

[2:36:28] There are seven vacant positions in the public work department.

[2:36:32] The third column of the slide list of positions that are vacant.

[2:36:35] These vacancies are in the following areas, parks, trees, city maintenance and water operations.

[2:36:45] There is one vacancy in engineering and one vacancy in management information systems.

[2:36:51] The Manager position at the Senior Center is also currently vacant.

[2:36:55] There is an approximate salary savings of 256,714 dollars if these 10 full-time positions

[2:37:04] stay vacant for the remainder of the fiscal year 2019-2020.

[2:37:09] Next slide, please.

[2:37:13] Inch and on Monday, currently there are 111 part-time vacancies.

[2:37:18] As you can see from the slide, the areas with the most vacancies are recreation, with 66

[2:37:23] Recreation later position vacancies and the theater with 20 vacancies ranging from security,

[2:37:30] facility and stage assistance.

[2:37:33] There is an intern and GIS clerk vacancy in the community development department.

[2:37:39] There are a total of five vacancies and public works.

[2:37:42] There are six senior center specialists vacancies at the senior center.

[2:37:48] There are two crossing guard vacancies in community safety.

[2:37:51] The finance and human resources divisions have one vacancy and there are eight positions

[2:37:58] vacants at the library.

[2:38:00] If these 111 part-time positions remain vacant for the remaining of the fiscal year,

[2:38:06] there is an approximate salary savings of $1,253,485.

[2:38:15] Next slide, please.

[2:38:19] Currently, there are five retired and new attendants and one independent contractor working

[2:38:24] for the city. There are two retired annuitance working in the administrative services department.

[2:38:31] One retired annuitance works as needed to provide assistance with the payroll process

[2:38:36] and workload. The other retired annuitance in administrative services is tasked with various

[2:38:42] complex projects that require both financial and legal analysis. There is one retired

[2:38:48] annuitance providing administrative support in the city manager's office. There are

[2:38:54] to retard a nuitance that work on booking performances and theater productions at the CTPA.

[2:39:02] And there is one independent contractor assisting with financial audits and consulting services.

[2:39:10] As a reminder, CalPERS rules state that retard a nuitance are limited to 960 hours in a fiscal year

[2:39:16] and that their salaries be reported on a bi-weekly basis to CalPERS.

[2:39:22] Next slide please.

[2:39:27] This slide list for you once again the salary savings incurred for the remaining of this fiscal year if the 10 full-time position stay vacant.

[2:39:36] The savings would be approximately 256,714 dollars. Next slide please.

[2:39:47] All these savings for the remaining of the fiscal year would be approximately 1,253,495 dollars

[2:39:55] if the 100 and 11 part-time positions stay vacant as a reminder in the past during challenging

[2:40:02] economic times, our focus has been on unfilled positions for cost savings.

[2:40:10] Next slide, please,

[2:40:13] this slide list what a 5% salary reduction and a 2% salary reduction

[2:40:18] would be based on a current payroll for a full year. Currently our city payroll for a year

[2:40:24] is approximately $22 million. This excludes French benefit cost of a $22 million, $16 million

[2:40:32] is for full-time payroll and approximately $6 million is a cost for part-time employee.

[2:40:40] A 5% salary reduction for one year is approximately 800,000 for full-time employees and 300,000

[2:40:47] part-time employees.

[2:40:51] A 2% salary reduction for one year is approximately 320,000 for full-time

[2:40:56] employees and 120,000 for part-time employees. Reformation with our classification tables

[2:41:04] are employees are grouped as follows. We have appointed employees by City Council. They are

[2:41:12] the city manager, the city clerk, and the city attorney, because these employees are appointed

[2:41:18] they are considered to be at world employees.

[2:41:24] Exgroup would be full-time management employees in confidential employees.

[2:41:29] The next group would be full-time representative non-managerant employees,

[2:41:33] and the final group would be represented part-time employees.

[2:41:38] The group of employees becomes important when discussing furloughs and ors layoffs.

[2:41:42] For both a furlough or layoffs process, the city must be ready to explain that there is a lack of funds.

[2:41:51] This includes looking at an explaining overall expenditures, revenues, and reserves.

[2:41:57] As a reminder, in the past, the city's totality of resources were analyzed by an independent panel during fact finding.

[2:42:06] In general, and very simple explanation of the difference between a furlough and a layoff is that with a furlough situation, you are basically sending employees home without pay.

[2:42:19] In addition, although a furlough process does not affect the CalPERS retirement benefit formula for an employee, it may, however, have an impact on final compensation and service credits.

[2:42:33] With a layoff process, you are separated in employees which will have an effect on both salary and benefits for the employee.

[2:42:43] As a point of clarification, our memorandum of understanding and resolutions require that we follow process in the case the city would like to furlough or layoff employees.

[2:42:54] It is a complicated process, but in general, the process includes the following.

[2:43:00] A closed session meeting with City Council to discuss the process and the parameters and direction

[2:43:07] for staff.

[2:43:09] The city would be required to give the union notice explaining the city's intention to

[2:43:14] furlough and or layoff employees.

[2:43:19] He required to meet and confer with the union over the impact of the furlough and or layoff.

[2:43:26] And the city would be required to give employees regardless of employee group they fall into

[2:43:32] or if they are represented, that are going to be laid off or for a load at least a 30-day

[2:43:38] advance notice.

[2:43:41] In conclusion, if there is a change in compensation, CalPERS requires a publicly

[2:43:47] approved classification plan for all employee groups. This concludes my presentation, Mr. Gallucci

[2:43:54] I will be happy to answer any questions you may have.

[2:43:58] Thank you, Patricia, for the report.

[2:44:00] I had a question in your slide that retired and you turned by department area.

[2:44:07] So, the tire or the still on the stop and what is the salary?

[2:44:10] It doesn't so is the saving of the tire and you turn by department.

[2:44:17] If they're part-time employees, they do not receive benefits.

[2:44:22] I know, but what is that total salary? What would be saving?

[2:44:25] What would be saving?

[2:44:25] I know that's why.

[2:44:27] It's on the slide.

[2:44:34] So that's at $450,000 for all these examples?

[2:44:39] Yes, sir.

[2:44:42] And that's without, there's no benefits and there's no,

[2:44:47] There are no benefits.

[2:44:52] I will open up, thanks for the research.

[2:44:55] I can't remember here if you have questions on these items.

[2:45:00] Well, I saw that salary saving only for a few months, right, until June the 30th, yeah, in total about one and a half million dollars. Is it correct?

[2:45:16] I'm proposing to carry it through the next year.

[2:45:18] But they should not say we got current here in the council of Mayu.

[2:45:23] Current year, right, 2020, until 2020, June 30th, we are saving 1.5 million dollars

[2:45:33] for those employees, part-time and food time employees, laid off or fur off.

[2:45:42] Is that correct?

[2:45:43] Are we saving that money right now art 1.2 million?

[2:45:48] 1.2 million plus 250,000, so total 1.5 million until June of 30, this year.

[2:45:59] 256,000, 714 plus 1 million, 253,485.

[2:46:11] If I may?

[2:46:12] Yes, first you go to it.

[2:46:14] Okay, if I make that is correct, the cost savings, you are referring to the 256,714 dollars would be the cost savings if the full if the 10 full time vacancies remain vacant.

[2:46:29] And one million two hundred and fifty three thousand four hundred and eighty five dollars would be the approximate cost savings if the hundred and eleven part time vacancies remain vacant.

[2:46:41] We may vacate and continue the 30th for the remaining of the fiscal year, correct, co-year.

[2:46:50] Okay.

[2:46:51] Thank you.

[2:46:53] Okay.

[2:46:54] Councilmember Yokeyama?

[2:46:58] Yes.

[2:46:58] Thank you.

[2:47:00] That was a good question.

[2:47:03] Councilmember Gray Sue.

[2:47:05] I want to clarify that please, Patricia, and thank you for your report.

[2:47:11] But these two dollar amounts that are labeled for the full-time vacancies by the

[2:47:22] Department area and part-time vacancies by the Department area and for the full-time vacancies

[2:47:28] it says salary saving fiscal year 2019-2020 and it's approximately 250,000 and then for the

[2:47:37] Our time vacancies, it says salary savings fiscal year 2019, 2020, and that's approximately

[2:47:45] 1,250,000, so that's the one and a half million that council member Gray Sue was just

[2:47:52] talking about.

[2:47:54] And we're calling it on these two slides of salary savings, where these dollar amounts

[2:47:59] In the budget that we approved in June of 2019, so that we are now saving these dollar amounts compared to the budget that we approved in 2019.

[2:48:13] In June of 2019.

[2:48:17] I

[2:48:20] believe they were included in the budget.

[2:48:24] I would have to refer your question to the budget manager, Jess.

[2:48:28] Yes.

[2:48:29] Just pick that up.

[2:48:31] Good evening.

[2:48:32] Yes, sir.

[2:48:33] Councilmember Yofiama, you are correct.

[2:48:36] Those positions were approved in the current fiscal year 2019-2020 budget.

[2:48:42] They are in the authorized positions list and they were budgeted by a count line item

[2:48:47] and the personnel section for each division that they are assigned to.

[2:48:53] Okay, great.

[2:48:54] So this update that Patricia has given us today in addition to your

[2:48:59] information,

[2:49:03] Patricia has estimated for us in her report that for these full-time vacancies and

[2:49:11] part-time vacancies, we are looking at an actual number at year-end, at fiscal year-end,

[2:49:17] that's going to be approximately $1.5 million less than the amount that we approved in

[2:49:24] budget on June in June 2019. Right, Jeff?

[2:49:30] That is correct, sir.

[2:49:31] Okay. Thank you for clarifying that. Patricia and Jeff.

[2:49:35] Thank you.

[2:49:38] Okay. Council member Medbroke Timberwell.

[2:49:42] Thank you, Mayor.

[2:49:43] I actually, I want to focus on the same area at the same

[2:49:47] talk in regards to the savings of $0.1920.

[2:49:50] That was already budgeted in the current budget.

[2:49:55] So the thing that we were asking for is, now the COVID-19 has kicked in, what cost savings

[2:50:02] are we doing now moving forward?

[2:50:05] And if this was something that was already looked at in budgeted in 2019, this was something

[2:50:10] that was already decided upon prior to the budget issues that we're having currently.

[2:50:16] And so I was hoping that we were going to get some type of update what we're doing now

[2:50:21] moving forward.

[2:50:23] So, correct me if I'm wrong, just, you said these numbers, the vacancies were 20,

[2:50:30] 1920, are currently have already been realized in the current budget prior to COVID-19,

[2:50:37] is that correct?

[2:50:40] Jeff?

[2:50:43] Thank you.

[2:50:45] So, how are you?

[2:50:47] I'm sorry.

[2:50:50] If I understand your question, you're asking if the 1.5 million was included in

[2:50:56] the original budget, the answer to that is yes and by freezing the positions at this point

[2:51:04] and in other words, not hiring them moving forward, it would be a savings, if you will,

[2:51:12] a budget reduction in expenses to the city of 1.5 million.

[2:51:17] Yes, I understand that, but this was already realized that I can tune the 2019 when the

[2:51:21] was approved. And what I was hoping for was, what are we doing now since the COVID-19

[2:51:26] is kicked in, what we can do to see any other savings moving forward with the new information

[2:51:34] that we have now with budget issues that we're going to now. So this is something I was

[2:51:38] pre-COVID-19 and I understand that. I just hope that was going to get some information

[2:51:44] what we're doing at this point moving forward for this current fiscal year and seeing what type

[2:51:50] savings we can realize after this much crisis so those are numbers that I would

[2:51:55] like to see what we're planning on doing if we're doing anything at all moving

[2:51:59] forward and then so I will hopefully we have discussed later on that and that's

[2:52:09] it

[2:52:10] for now thank you but they have a one question.

[2:52:18] Okay, Councilor

[2:52:22] sales tax revenue will lose down $4 million and then can we figure out for the budget

[2:52:31] 2020 to 2020 first how much we can save for these salaries can we because right now

[2:52:42] those you know employees we may some of them we may hire back so can somebody figure

[2:52:51] out about a salary, how much we can save for next, officially, a physical year.

[2:52:59] One of the slides showed, was the reduction of 5% of salaries, and that was requested

[2:53:05] by consoles.

[2:53:07] And that shows how much money we would say that they were at 5% and at 2%.

[2:53:11] 1.1 million?

[2:53:13] Yes.

[2:53:15] Also, we're proposing not to fill any of these positions, any of the recreational leaders, any of the 111 positions, they're unfunded or they're funded, but they're not employed at this moment. There's no one there.

[2:53:28] So we could literally eliminate all of those positions in the hourly positions without impacting individuals.

[2:53:38] Okay, thank you.

[2:53:39] Mayor, I have some more questions if you don't mind.

[2:53:44] Okay.

[2:53:46] We did have one more clarification on Patricia in regards to the years speaking on the procedural process in regards to if we were to look at employee change of work conditions and pay and you went into the details of the procedural and the rules of contracts.

[2:54:11] and negotiation of

[2:54:15] information in front of me.

[2:54:18] The PowerPoint shows other things that you talked about.

[2:54:21] That would be nice to have if you can't provide that to council.

[2:54:26] So that way we can have it in front of us when we do make the decision

[2:54:28] know what we should and can and we'll do.

[2:54:31] So we don't do anything that would violate those

[2:54:35] current rules and procedures and policies.

[2:54:39] I would appreciate that.

[2:54:40] Thank you.

[2:54:41] Mayor, pro-temp for your information, staff contacted early this week, our attorney who represents us as a relates to labor law, and he's preparing a document that we'll have the first of the week next week that we've presented to Council immediately.

[2:54:55] And it will set the procedure forward.

[2:54:59] Thank you.

[2:55:02] Thank you.

[2:55:04] Thank you.

[2:55:04] On your behalf.

[2:55:05] Dear, may I follow up?

[2:55:06] Please.

[2:55:11] Thank you.

[2:55:15] So, specifically, who's the labor attorney that we reached out to?

[2:55:23] We reached out to both in Goldstein?

[2:55:26] Yes, sir.

[2:55:29] So, just continuing what we were talking about Patricia about the full-time vacancies and the part-time vacancies

[2:55:36] and the salary savings for fiscal year 2019-2020 that you calculated for us, that salary

[2:55:45] savings for the entire fiscal year, fiscal year 2019-2020, that ends on June 30, 2020,

[2:55:54] Patricia?

[2:55:59] the salary savings of $256,714 for full-time vacancies and the salary savings of $1,253,495 for part-time vacancies are the salary savings for the remaining of this fiscal year.

[2:56:25] So is it for the entire fiscal year from July 1, 2019 to June 30, 2020 or is it a shorter time frame in that, then that please?

[2:56:43] If I understand your question correctly, if you would like to know a salary savings for a full year, if the full time vacancies were less than filled for the entire year.

[2:56:59] year. That would be about $850,000. Just to give you an idea of the difference.

[2:57:09] Okay, so thank you. So thank you for clarifying this. So you've calculated these amounts.

[2:57:14] What was so? It's through the, you've already confirmed it's through the end of the fiscal

[2:57:19] year. The salary savings are through the end of the fiscal year, June 30, 2020. What is

[2:57:25] starting date for this calculation. What date did you use as the start date for this

[2:57:31] time period, please?

[2:57:35] This is, if I remember correctly, this is about for the remainder

[2:57:41] than for an April for two full months. So this is, so this $1.5 million in savings is for two

[2:57:48] months of time for these 10 full time jobs and these 111 part time jobs. Yes, the remainder of the

[2:57:56] square.

[2:57:59] Okay, so work. So what this information is letting us know in dealing with this

[2:58:05] COVID-19 pandemic and the local emergency and the effect on our finances is if we keep

[2:58:13] these positions unfilled for the remainder of the fiscal year by taking that approach, by

[2:58:21] being proactive and keeping these positions unfilled, you're saying you're letting us know

[2:58:30] we're saving about one in a half million dollars for the last two months of the fiscal year.

[2:58:40] That's correct.

[2:58:42] Okay, thank you.

[2:58:43] And that's just salary, right?

[2:58:45] Patricia?

[2:58:47] That's what you were able to calculate for us today on this short note is the salary, correct?

[2:58:53] That's correct.

[2:58:53] So, what you were kind enough to remind us in your presentation, and in the power and in the slides,

[2:59:03] is you reminded us that those salary savings do not include fringe benefits.

[2:59:07] They do not include fringe benefits for the full-time positions, and they do not include fringe benefits for the part-time positions.

[2:59:14] So, is it correct that the actual savings to the city by keeping these positions unfilled will end up actually being

[2:59:21] more than one and a half million dollars?

[2:59:32] Yes, yes sir.

[2:59:37] Thank you, Councilmember.

[2:59:39] The sure answer is yes.

[2:59:41] There will be some savings out of benefits.

[2:59:44] The benefit calculation is very complicated,

[2:59:47] but we will likely see some reduction associated with

[2:59:53] not filling those positions.

[2:59:56] Okay, great.

[2:59:56] And like you said, and I expected to know that.

[3:00:00] The calculations of the benefits is a complicated process, and we know we pushed you guys to get this back to us in a few days.

[3:00:07] But I just wanted to get that clarification while we're talking about taking a strategic approach in responding to the COVID-19 pandemic

[3:00:17] and considering keeping these full-time positions unfilled and these part-time positions unfilled for the remainder of the fiscal year.

[3:00:26] We're saving about, we're saving about one and a half million dollars in salary savings, but we'll also be saving some uncalculated, undetermined amount of fringe benefits, is that correct?

[3:00:38] That is correct.

[3:00:40] Okay, thank you so much, Chef. Thank you, Mayor. That's my question.

[3:00:46] So Patricia, let me ask that question again.

[3:00:50] So, these 10 full-time positions unfilled was that just we decided in April to not to

[3:00:58] fail, or we decided in fiscal year 2019 to 2020 not to fail.

[3:01:06] It's been more than a year, Mayor.

[3:01:08] Okay.

[3:01:09] So, we have not cut for this last two months, anything.

[3:01:15] What we've done is prepared a budget showing all of the cuts.

[3:01:20] If I can't bear and that's not enough, when we had a meeting on Monday, special meetings

[3:01:29] regarding cutting the budget for last 10 week of this year, what steps have we taken for

[3:01:36] last 10 weeks?

[3:01:38] Was this cut, was done for last 10 weeks or was this was we did not fill this and was this

[3:01:46] already adopted in 2019, 2020 budget.

[3:01:51] Do you have if you want to go into part of your summary on as we relate to the next item?

[3:01:55] The total summary?

[3:01:58] Yes, sir.

[3:01:59] We can certainly move on.

[3:02:01] We're familiar with that.

[3:02:02] May I answer some of your questions?

[3:02:04] If we move on, we'll have a couple of slides.

[3:02:07] That's all right.

[3:02:08] You think that we part-time position on field 111?

[3:02:12] did we lay off anybody in last month in April so that way we have vacancy this?

[3:02:20] No.

[3:02:22] Over the week?

[3:02:22] We have not.

[3:02:24] So in total entire year of 2019 to 2020, we did not fill these positions.

[3:02:30] In whole year, right?

[3:02:32] Yes.

[3:02:33] Over time, as positions open, just like the tenfold time, as position open, we did not fill them.

[3:02:39] Okay, was this item was in budget and adopted in 2019 2020 did numbers?

[3:02:47] I don't recall that. I have to look.

[3:02:52] Mr. Goosey, if I could, may or yes, these numbers were included and approved by the City Council on the current fiscal year 2019 2020 budget.

[3:03:03] How do you get the project that somebody is going to live and we are going to fill up the positions?

[3:03:08] And this is the amount going to be.

[3:03:13] These numbers were calculated on based on when the positions were vacated, and which is essentially all over the map.

[3:03:24] So that's why, for example, if you were to look at the, I believe Ms. Leyva said that one full year of the full-time 10 full-time positions that are currently vacant is worth about $850,000 in salary.

[3:03:40] The reason why the number is lower now is because the positions were vacated in a staggered

[3:03:50] way throughout the year.

[3:03:52] They were scheduled to be filled, they were budgeted to be filled, and with the onset

[3:03:57] of COVID-19 crisis, the city manager has made the determination essentially to freeze those

[3:04:04] positions to help combat our declining revenues by a way of limiting our expenses and our exposure

[3:04:11] to those liabilities.

[3:04:13] I simple question.

[3:04:15] I don't want to go this round and you know of this number.

[3:04:18] For last two months, have we cut anything?

[3:04:23] Have we cut anything or we have every single employee keep getting paid while they're not working?

[3:04:30] Have we cut anything for last ten weeks?

[3:04:33] of this this this this career this position was already calculated in our budget

[3:04:39] they were we did not fill it but we didn't cut anything did we programs and

[3:04:45] activities okay program and activities that's all different story we are just talking

[3:04:51] about payroll saving right now here

[3:05:02] do we have a saving on the payroll for last

[3:05:05] 10 weeks that we're going to be out of business in this year, 2019, 2020,

[3:05:16] can somebody answer that for us?

[3:05:23] Sure, sure.

[3:05:23] The business, we lose business, we cut expense.

[3:05:27] How is city is cutting expense for last 10 weeks?

[3:05:34] In budget we're preparing there.

[3:05:37] As all of a sudden, that is 2020 to 2021.

[3:05:40] I am talking about immediate action.

[3:05:43] has the city has taken any use, any action possible to reduce impact from this pandemic.

[3:05:50] Currently, because we already lost $1.2 million in revenue in very short time.

[3:05:56] And on top of that, we are recently spent $42,000.

[3:06:02] And we've applied for a real fund and all of those dollars.

[3:06:05] $42,000 doesn't matter.

[3:06:06] But we did lost $1.2 million in very short time.

[3:06:10] And we're going to continue to lose more, because just like a hotel,

[3:06:13] the TOT and the card cells and the cell tests. So, we don't have income, yet as our

[3:06:20] counsel, it's real blame for it, that we have not made enough cuts.

[3:06:27] Well, that's what we're attempting to do, Mayor's proposed and present to you a budget that

[3:06:32] will show to the cuts.

[3:06:36] That is for a future, right? Yes, sir.

[3:06:39] Okay. I am talking about now. Current, current, your fiscal year for 10 weeks or 9 weeks

[3:06:47] that we have left what are we doing possibly to reduce the impact from the pandemic and do not

[3:06:56] have income and we are losing revenue day by day

[3:07:03] and everyone is asking us to defer

[3:07:06] the rent.

[3:07:07] That's also has not even calculated yet in that 1.2 million dollars for this year.

[3:07:13] Correct?

[3:07:15] Yes sir.

[3:07:16] So, we could be in last 10 or 9 ways, we could be upside down 3 to 4 million dollars.

[3:07:26] We have no accent plan.

[3:07:33] You know, when you're done, I would like to also make some comments.

[3:07:38] Okay, I'm done medical time. You go ahead.

[3:07:40] Because I am not getting answered what I'm looking for.

[3:07:42] All I'm getting is round and round and round.

[3:07:46] Thank you, Mayor.

[3:07:47] So, I just want to clarify too.

[3:07:50] I'm all of it confused now because the slide says,

[3:07:53] Unfilled part-time position, this school year 2019-2020.

[3:07:57] It does not say this school year 2019-2020 made in June,

[3:08:02] so that's why my impression of this report of 1.5 million savings

[3:08:09] is spread out through the year of 2019-2020.

[3:08:13] However, it was just mentioned that this is only

[3:08:17] for the last two months of the rest of this fiscal year.

[3:08:21] So my question then would be what is the whole year savings that from these vacancies that were approved on the budget back in 2019?

[3:08:29] Can I get the whole year savings then please?

[3:08:36] Do you have it?

[3:08:38] Yes, sir.

[3:08:41] You want second year.

[3:08:42] I'm just checking right now.

[3:08:43] I believe in and Ms.

[3:08:44] Lavea could possibly chime in to verify this.

[3:08:49] I believe the calculations for an entire year for the part-time positions for these 111 part-time

[3:08:57] positions would be $2.1 million and the full-time positions, the 10 of them, would be approximately

[3:09:07] $560,000 salary.

[3:09:11] So, that is to say, if they were which the City Manager has directed the budget office

[3:09:20] to project that moving forward for next year, that would be the reduction in positions

[3:09:26] that the city council would see. So for one year for the part time, it would be 2.1 to 2.2 million.

[3:09:34] Excuse me, for full time, the 10 decisions that would be about 560,000.

[3:09:41] Okay, thank you. So you're saying that for two months of savings on the rest of the specific year,

[3:09:46] we'll say 1.253 or 85, we're just two months.

[3:09:51] But if you look at the whole year of this 2019-2020, it's 2.1.

[3:09:58] So that calculation doesn't make sense to me,

[3:10:01] because if you look at two months' worth of savings,

[3:10:04] and you multiply that by 12 months,

[3:10:07] I see a savings of almost 7 million,

[3:10:10] if these were the two months' real numbers,

[3:10:13] or the rest of this fiscal year.

[3:10:15] So that's why, and then you're just as the right now,

[3:10:19] you're saying the whole fiscal year 2019-20, which is the rest of this year, we're just

[3:10:24] focused on this year, not next year. You're just doubling the number for each group, it looks

[3:10:31] like, but then you're spreading over 12 months instead of 4 months. So that's where I'm confused.

[3:10:37] And again, it's probably mean as confused, but the numbers to me don't make sense, and hopefully

[3:10:42] you can clarify that. Not just to me, but also to the rest council, also to the public,

[3:10:47] because that would lend for more questions moving forward.

[3:10:52] And so that's why I was asking because the slide says 2019, 2020.

[3:10:57] So that's the savings for the year, then I would understand that.

[3:11:01] But since it was confirmed, this is only for the last two months of the rest of this fiscal year.

[3:11:06] Those are the actual numbers of savings for this next two months.

[3:11:11] Then I just wanted to know what the whole year was prior to these two months.

[3:11:16] And you're saying it's 2.1 for full-time. I'm sorry part-time and 560,000 for full-time.

[3:11:23] And again, that's 12 months worth not four months worth to business things like you're just doubling the number.

[3:11:31] And also on the part-time 111, you pay 1.2 million, you put a stack, does not include fringe benefit.

[3:11:38] Part-time don't get fringe benefit.

[3:11:41] Some do, sir. Very few, but some do.

[3:11:45] Okay, you should need to show the different numbers there.

[3:11:49] Why do you think that will be everything?

[3:11:51] If I may, on the French benefits, you would be looking at an additional rate of about 75%

[3:11:57] on type of salary.

[3:12:00] And the French benefit rate, and Jeff, you can correct me on this, is pull sharing of expense over and among all employees.

[3:12:14] Anyway, but this, you know, what I say this, this number, don't look correct, don't look right,

[3:12:23] and these are the numbers which came from the budget book for 2019-2020 that we were looking

[3:12:30] for something to make some immediate cuts and immediate changes for last 10 weeks, and I don't

[3:12:36] that year. We'll keep worrying about 2019 and 2020 new budgets, but nothing is done or said

[3:12:44] or that I hear that what are we doing to offset the loss of revenue for this last two

[3:12:50] and half months on this year?

[3:12:55] I have one question, okay. So very simple question. Last two months, for instance, CCPA, we didn't

[3:13:05] We don't have any things, did we ever lay off any employees from over the last two months?

[3:13:17] If we lay off somebody, how many did we lay off?

[3:13:23] We really don't need that many employees right now for CCPA.

[3:13:27] Even for next few months or three to six months, we don't need that many employees in CCPA.

[3:13:33] So, did we ever lay off last couple of months, just last eight or ten, ten weeks?

[3:13:42] We have, yes, we have not hired back the hourly employees that have left.

[3:13:48] How many, our employee left?

[3:13:53] We've got it in the slide here, we're going to pull it up.

[3:13:57] That's not enough.

[3:13:59] Maybe we need to lay off.

[3:14:00] They're still getting paid for it, right?

[3:14:03] No, sir, the ones that left are gone.

[3:14:05] How many?

[3:14:08] I don't know.

[3:14:09] I don't know.

[3:14:09] I don't have to check that.

[3:14:10] If I may say something, at the beginning of the presentation, I made the comments that

[3:14:15] these are very raw numbers.

[3:14:17] We put this together in 72 hours, all these reports.

[3:14:21] So is everything perfect?

[3:14:23] Are we getting there?

[3:14:24] We needed more time, as I mentioned to you, Mr. Mayor.

[3:14:28] I won't.

[3:14:28] They all have a 70% of our employees.

[3:14:31] I think CTPP for the type being they should lay out of this, you know,

[3:14:38] more, you know, a few times in the part-time employees, so if only one or two

[3:14:44] part-time, I don't think that's enough, we are losing 1.2 million

[3:14:48] hours, you know, last couple months.

[3:14:51] All the employees, councilwoman that have left, we're not rehiring, plus we're also

[3:14:57] asking the militants to leave the theater and there's

[3:15:00] Other people that are leaving and we're not back filling. So, yes, we agree with you that facilities going to be shut down for a few months, while the fire suppression system is built in there.

[3:15:10] And until it's done, no one will be using that building. So, all of those employees that are there will be leaving, except the ones that are necessary for the building.

[3:15:20] Okay, thank you.

[3:15:25] Okay, any of the concept any questions on this item people move on is I didn't got Michael answers

[3:15:34] What is next item?

[3:15:39] next we have Jeff for the proposed cut so scuts

[3:15:51] Thank you mayor jump till e-budget manager

[3:15:55] As mentioned earlier some of the e

[3:15:59] Revenues for the city are being disrupted and are changing on a daily basis

[3:16:05] Of course, the most notable of these is your sales tax revenues.

[3:16:11] This presents a unique challenge for the city given that the budget is a point in time

[3:16:16] document that provides the city with a compass or a road map if you will for programs and services.

[3:16:24] And that road map is changing day by day.

[3:16:27] Given this unique situation and the unpredictability of our traditional resources due to the

[3:16:34] of COVID-19, the City Manager's strategic response to this crisis is centered on reducing

[3:16:41] expenditures with minimal impact to city services wherever possible.

[3:16:46] To that end, the City Manager has been working with the Budget Office and the Finance

[3:16:51] Division for several weeks to reduce expenditures to combat the ongoing reduction

[3:16:56] in our revenue streams.

[3:16:59] The City Manager asked that the budget office provide a few slides for your reference tonight to highlight these reductions in the current fiscal year budget of 2019-2020, which ends just two months from now on June 30.

[3:17:16] Next slide please.

[3:17:20] In this slide we are attempting to illustrate the cuts to the budgeted operations and maintenance expenditures in the current year.

[3:17:29] broken down by the department. All of these cuts combined are projected to

[3:17:36] result in approximately $2.5 million in expenditure reductions for the

[3:17:42] city this year.

[3:17:49] These adjustments were provided in cooperation with all

[3:17:54] departments and divisions across a few hundred operational accounts. This slide

[3:17:59] provides a summary of some of those account types across all departments.

[3:18:04] These account types include equipment, office and special supplies, program expenses,

[3:18:11] printing and postage, travel and meeting, and professional and outside services.

[3:18:18] Next slide please.

[3:18:22] In this slide we are illustrating cuts to the current capital improvement program or

[3:18:29] P budget in the current year by deferring previously approved projects to a future year.

[3:18:36] This is broken down by project classification just like you see it in the budget book.

[3:18:41] All of these deferrals combined result in a $5.9 million budget expenditure reduction for the city this year.

[3:18:51] Next slide please.

[3:18:56] These adjustments were provided in cooperation with the Department of Public Works.

[3:19:00] Water Empower across all project areas, focusing on reducing or completely deferring any projects that are not reimbursed or considered to be critical to operate the city.

[3:19:12] This slide provides a summary of just some of those projects, including the Sunshine Park playground,

[3:19:20] the city's facility security equipment,

[3:19:23] Mark Hort Avenue Improvements, Traffic Signal Safety Upgrades, Skated System Upgrades, Upgrades and Rehabilitation or Replacement of some of the city's sewer list stations and the signage of the sculpture garden.

[3:19:39] Next slide please.

[3:19:43] This slide provides a summary view of all reductions to date made by the city manager.

[3:19:47] including those personnel, vacancy freezes discussed by Ms. Leyva just a few moments ago.

[3:19:54] The total estimated reductions at this point represent nearly $10 million for the current fiscal year.

[3:20:00] And while we are working hard to produce a fiscal year 2021 budget for the May 18 study session this year,

[3:20:08] staff has been challenged by these unprecedented times.

[3:20:11] Again, the city manager has been working very closely with both the budget office and the finance division.

[3:20:16] To monitor the continuously evolving numbers and crafting a strategic response to the reduction of our major revenue streams.

[3:20:24] This concludes my portion of this item.

[3:20:27] We are available for any questions.

[3:20:33] Same question.

[3:20:34] What this thing was cut for the COVID or was already cut in the year that we didn't need

[3:20:39] at some of these operas and then maintenance expenditure.

[3:20:44] But

[3:20:47] these cuts were directed by the city manager and direct response to COVID-19.

[3:20:52] So, all these things have an up there.

[3:20:55] Correct.

[3:20:56] So, including that, you guys will fully let it 1.25, 3, 485, 250,000 for 2 months.

[3:21:06] And the payroll.

[3:21:09] So, if you divide that by 2,700,000 times 12 months,

[3:21:13] was 9 was originally was budget at $9 million.

[3:21:20] I think the confusion is, if I could go back and talk about the vacancies again,

[3:21:27] it's okay.

[3:21:28] We're not going to get anywhere.

[3:21:31] So this expenditure was reduction.

[3:21:35] And all this happened in this last two weeks.

[3:21:40] In more than a half, and in the next couple of weeks, based on this

[3:21:44] We have action to take for the ten employees and the news and the employees that will all be done in this next month.

[3:21:54] The idea of all this items committed to development department, $63,000.

[3:22:00] What did we do in there?

[3:22:03] That we did use $64,000.

[3:22:05] Just the one item I have question.

[3:22:13] We have decided for you.

[3:22:15] If you can give me just one moment I have some notes on that or some detail that I could share with you.

[3:22:35] I'm going to office and working with all of the departments and you were asking specifically about community development.

[3:22:44] They had 63,495 in reductions from the mid-year entry that they had put in January.

[3:22:55] And some of those reductions came if I can just pick out a few here, some of the larger ones.

[3:23:03] There was a $25,000 change reduction for housing element preparation, which is beginning later.

[3:23:11] So they identified that as a cut that we could do to respond to COVID-19.

[3:23:19] We had current planning.

[3:23:26] Okay.

[3:23:27] Next slide.

[3:23:28] Let's open this item.

[3:23:29] Administrative Service $1 million introduction.

[3:23:33] Where is that number came from?

[3:23:37] Similar cuts to all of those types of accounts that I mentioned earlier.

[3:23:42] Although I will say for administrative services.

[3:23:45] Perhaps the sum of it more than $1 million in the Administrative Service.

[3:23:48] Give me a couple of little number examples.

[3:23:50] The largest single cut and administrative services was about $400,000 in equipment.

[3:23:58] The city manager asked the budget office to identify any equipment items that had not been purchased yet.

[3:24:08] And asked us to freeze those just a few days ago.

[3:24:11] So we were able to identify approximately $400,000 in unspent funds for equipment this year

[3:24:20] at the City Council that already approved. And we have frozen those in response to COVID-19.

[3:24:25] So those are capital improvement. We can't find it. It's equipment.

[3:24:33] Truck, it is more, you are correct. It is considered capital outlay, but it's not capital improvement.

[3:24:38] It is equipment assets. Okay. And in phase of government buildings, 4.8 million. What is that?

[3:24:47] That's part of the Capital Improvement Program, the largest segment in that cut was likely

[3:24:59] due to the Morgan Project's rehabilitation,

[3:25:06] not starting.

[3:25:11] So, but that doesn't call it really a cut,

[3:25:15] which is not doing it,

[3:25:19] in my right or maybe I'm

[3:25:20] wrong.

[3:25:26] Did we move this?

[3:25:28] At this time, I'll call a question from the Council, Councilman Hewf.

[3:25:31] Yeah, thank you. See, this is my question, too. Government buildings for 4.8. Even

[3:25:40] Monica building won't be 4,844,000 dollars. This is my question. Who are the government

[3:25:50] the building's cut reduction. For people as a one example, besides money can be

[3:25:59] beauty.

[3:26:01] That's a lot of money, almost $5 million.

[3:26:07] For you cut, who are you cut?

[3:26:14] Council Member, Council Member Hugh is asking questions staff that, where is that $4.8 million?

[3:26:19] How did he get cut?

[3:26:23] Again, the majority of that would be from the Mullick and building basically being deferred

[3:26:33] until further notice.

[3:26:35] We had some other cuts, I'm kind of going down the list right now.

[3:26:41] We're looking at a variety of cut security equipment replacement and city facilities, reduction

[3:26:48] and senior center operational improvements, reduction, actually the elimination of senior center

[3:26:53] exterior improvements, the reduction of CCPA operational improvements, civic center parking

[3:27:02] structure security camera upgrades, reduction and reduction and corporate yard security

[3:27:09] camera upgrades.

[3:27:20] Did you have any more questions?

[3:27:23] Well, that's the only one question I have at the rest that you already asked.

[3:27:28] Council member, Yokayama, do you have questions on this item?

[3:27:34] Yes, thank you.

[3:27:37] Thank you, Jeff.

[3:27:41] Thank you, Jeff, for sending us with this

[3:27:48] proposal for budget expenditure reductions.

[3:27:53] And what it looks like, what we're doing is for these category of operations and maintenance.

[3:28:03] And then also the category of capital improvement program.

[3:28:07] These were items that were approved in the 2019-2020 fiscal year budget correct?

[3:28:15] That is correct.

[3:28:18] So, we're basically freezing them right now to deal with the 19 pandemic and the local

[3:28:25] emergency that we've declared here in our city in this proposal.

[3:28:30] That is correct.

[3:28:33] But these expenditure requirements are not going away.

[3:28:37] At some point, we're going to need to do these capital improvement programs.

[3:28:43] That is also correct, yes.

[3:28:46] Okay.

[3:28:46] Okay, thank you so much, Jeff.

[3:28:50] Okay.

[3:28:51] Concentment in May of both can both.

[3:28:54] Do you have questions?

[3:28:56] Thank you, Mayor.

[3:28:57] First of all, I do appreciate the fact that staff is trying to answer our questions

[3:29:02] and such short notice when we request it all this at the last meeting.

[3:29:07] It is a lot of information for them to gather and provide us.

[3:29:12] But that, and I do appreciate that.

[3:29:15] One question that I have right now is in regards to the reduction when it comes to operation and

[3:29:25] Maintenance for fiscal year 2019 2020 so the slides are confusing because

[3:29:32] It says fiscal year 2019 2020 and but in this case we're talking about the last two months

[3:29:39] So that's why there is some confusion on my part but on this PowerPoint

[3:29:45] It's very clear that we're only talking about the last two months and the steps that we're taken by

[3:29:50] city manager and staff to reduce the expenses under operation and maintenance on the first slide.

[3:30:00] That includes also personnel and equipment and everything possible, is that something that I'm understanding, it's not just equipment because it really doesn't describe each line at you know what it is and maybe because there's so many of them because it is a big ticket item for each department.

[3:30:23] I'm just trying to get a grasp on what it covers because it's really general and again I understand

[3:30:29] this was last minute.

[3:30:30] If you had a throw it together for us and hopefully moving forward it can be a little bit more

[3:30:34] clear.

[3:30:36] But this proposed expenditure reduction for the first slide and moving to the next so forth includes

[3:30:42] equipment, personnel, expenses and just everything as you can think of that we can do to

[3:30:49] save money.

[3:30:50] In

[3:30:57] fact, except for operations and maintenance does not include personnel, operations and maintenance we try to lay this out in a similar breakdown that the budget book is constructed.

[3:31:11] So, personnel is one section, operations and maintenance is another and capital improvement is another.

[3:31:19] So, in this case, when we're looking at here on the screen,

[3:31:23] operational, excuse me, operations and maintenance,

[3:31:27] that's basically a summary snapshot of some of the,

[3:31:31] just some of the accounts that the entire staff,

[3:31:35] all departments were involved in reviewing their own areas,

[3:31:39] identified cuts that they could do in response to the budget situation.

[3:31:47] And those cuts represent a total reduction in the budget.

[3:31:55] I hesitate to say that it's just representative of the last two months because really

[3:32:01] it's part of the entire budget for the entire fiscal year.

[3:32:05] So that is the safe staff went and identified what was happening right now, what they can

[3:32:11] for what can be delayed, what can be cut, and they put in in total reductions in all of

[3:32:18] the accounts that they analyzed individually.

[3:32:22] And more to your point and your question about some of the detail, I believe that something

[3:32:28] on the order of 250 accounts were touched and changed from the mid-year entries to the city

[3:32:38] managers request.

[3:32:38] So, that is a voluminous amount of information to present on the screen, so we tried to consolidate it down into a summary by department in the total cuts to the budget for your review and make it a little bit more digestible.

[3:32:57] Okay, thank you, Jeff.

[3:32:58] And so just so I'm doing a gathering all my information.

[3:33:03] The past agenda, the last agenda that we've talked about,

[3:33:06] a positive 2.5 million savings moving forward from today.

[3:33:11] And now we're talking about 8.5 million in reductions,

[3:33:17] not including personnel.

[3:33:19] So in the moving forward in the next two months,

[3:33:21] we're going to be saving $11 million.

[3:33:24] And that's the very impressive.

[3:33:27] I hope I see that.

[3:33:33] Thank you.

[3:33:35] So Jeff, back to the total saving,

[3:33:37] a total reduction,

[3:33:39] he shows a 9,951,158.

[3:33:44] So this money was budgeted for 2019,

[3:33:49] And if we don't use this fund,

[3:33:50] they should go back to the reserves.

[3:33:52] 10 million dollars.

[3:33:55] Yes, that is correct.

[3:33:57] And whatever fund, if these expenditures would be pulling from, that money would stay in

[3:34:04] their respective fund.

[3:34:05] That is correct in the reserve.

[3:34:07] Right now, we're showing a general fund of $71 million in actual sense that we're going

[3:34:11] to have at the end of the year, maybe $81 million then.

[3:34:15] Well, it's early, I think as Mr. Kerry was explaining earlier, it's difficult to project

[3:34:22] at this point. I would add to that that these reductions represent cuts across all funds,

[3:34:31] not just the general fund. So there may be, for example, in the capital improvement program,

[3:34:36] some of the cuts there would, say, perhaps reduce expenditures out of the street fund or

[3:34:43] the water fund. So all sides are touched in this, but you are correct that the general fund

[3:34:47] would most likely see the most amount of savings, if you will, or at least, you know, instead

[3:34:57] of 100, let's say we did it because there are a lot of the department and fund with a different

[3:35:04] fund, different categories. So, 110 million, 915, so we'll have 120 million and 915, right?

[3:35:11] If we don't put in general fund, we should have 10 million dollars somewhere in a book's increase.

[3:35:16] It really, it really depends on where revenues land and where actual expenditures land at the end of the year.

[3:35:25] And unfortunately, we will not know that until probably closer to September.

[3:35:31] Mr. Kerry and his finance team present to you as the council is aware at the end of the calendar year, the caffer, which tells you what your actuals were.

[3:35:41] So at that point, we'll have a much better sense of where we actually land it.

[3:35:45] But you have 110 million dollars right now.

[3:35:49] You saying that we're going to have a 10 million dollars in reduction.

[3:35:53] So wouldn't that be 120 million at the end of the year?

[3:35:59] Or if I can jump in here, this is Ryan.

[3:36:02] I just like to probably hope to provide a little bit of clarity on this particular situation.

[3:36:09] Mayor, I understand your point.

[3:36:12] However, we're not looking at that as it's not additional revenue.

[3:36:18] We're not receiving additional revenue.

[3:36:20] We're simply not incurring additional expenditures.

[3:36:24] And so our general fund reserve would likely stay in the same neighborhood

[3:36:28] where we're at right now of $70 million.

[3:36:32] Whereas if you were to spend those funds that Jeff and Art have conveyed,

[3:36:39] Your general fund reserve would decline, you know, on the order of five, six, seven million dollars.

[3:36:47] By not spending these funds, you have the opportunities to retain your existing reserve, but you're not receiving any additional revenue.

[3:36:56] You're just saving money that you would have otherwise spent.

[3:37:02] I'm lost here.

[3:37:09] You're not spending this $10, $12 million that the budget office has laid out through

[3:37:16] not spending it, you're saving the principle on your reserve fund that you have now.

[3:37:25] It's not counting it as a revenue, and so you wouldn't be generating an addition.

[3:37:32] Your reserves are not going to go from 110 million to 120 million through these reductions.

[3:37:38] You're simply not going to be incurring additional expenditures on the $70 million reserve

[3:37:44] that you have.

[3:37:46] But from that $70 million, the $10 million that hasn't been taken out yet, that's what you're

[3:37:51] saying.

[3:37:52] Correct.

[3:37:53] Correct.

[3:37:54] Yes, that's correct.

[3:37:55] So if we were to spend that money in the next two months, your general fund reserve would

[3:38:02] decline as would, several of the other funds where those revenues would be coming from, or those

[3:38:07] expenditures would be charged to. Whereas if we don't spend the funds, we're going to retain

[3:38:14] that existing reserve. So it doesn't show any pure cut at all in anything for last 10 weeks.

[3:38:21] That's what I'm looking for when I don't see it.

[3:38:25] We're trying to convey a savings as much as

[3:38:29] rather than, I guess, potential cuts, but we'll receive, we have a savings that we're going

[3:38:36] to be receiving and preserving our general fund reserve through these proposed reductions.

[3:38:45] All this still, we probably have to have another special meeting for this, any of this

[3:38:50] number doesn't make sense to me. All right. There's any other consolation, any questions?

[3:38:55] If it's not, we jump to the next item, which is for Kanna and Ramsey.

[3:39:05] Our little mayor, members of City Council, the next item, was a at your direction on Monday.

[3:39:12] You were looking for some clarity on what the City Council is electric utility does so far as the 5% discount that it provides.

[3:39:22] Ramsey, Rob Dean, will be providing you some more detail.

[3:39:25] And then E&I and Mr. Galucci will take any questions that you have.

[3:39:30] Ramsey?

[3:39:43] I guess Ramsey may have some technical issues.

[3:39:45] So let me take it from here, essentially it's just to give you a little background, the utility was set up if you can take the next slide please.

[3:39:55] The utility was set up in 2003, essentially in response to some major issues, potential brownouts and so on.

[3:40:04] The City Council directed staff to look into finding a suitable opportunity to get into the business.

[3:40:15] We sponsored Assembly Bill 80 under which we were given the regulatory rights to enter into the utility business.

[3:40:24] And subsequently we have bought into the Magnolia Power Plant in Burbank, along with five other cities.

[3:40:32] Next slide, please.

[3:40:37] So the Magnolia Power Plant is our major source of power, if you will.

[3:40:42] It provides about 110 million kilowatt hours of power.

[3:40:49] It has the availability to us.

[3:40:51] Subsequently, we also signed up to get a small allocation from the Hoover Dam, known as the Boulder Canyon Project,

[3:40:59] and finally we have two photovoltaic arrays at the corporate yard.

[3:41:05] On location, we also just from the ISO market to make up for any significant peaks, especially during the summer months.

[3:41:13] Next slide, please.

[3:41:16] At this time, the utilities serves commercial accounts only.

[3:41:23] We started small with about 20 other accounts in 2005.

[3:41:27] Since then, we have grown to about 300 commercial accounts.

[3:41:31] We serve, as I mentioned previously, all of our major city facilities.

[3:41:36] We also serve in the commercial area.

[3:41:38] We served small several lot of dealers.

[3:41:42] We serve the school district.

[3:41:43] We also serve several other small businesses within the city.

[3:41:50] In response specifically to the questions that were raised on Monday evening,

[3:41:55] looking at a data we found a one-fold year of data,

[3:41:59] which was calendar year 2019.

[3:42:01] So between January of 2019 through the end of that year,

[3:42:06] the utility sold 66 million kilowatt hours.

[3:42:11] Of this, we, as I've also mentioned previously, we take about 16,000 of that, goes towards our 16 million of that, goes towards city facilities.

[3:42:26] So really, what we sold into non-city customers is about 50 million kilowatt hours.

[3:42:34] Again, going back to what I had mentioned, we have under our agreement with Edison, the enabling agreement that allows

[3:42:45] cerido's electric utility to operate as a utility.

[3:42:48] We have two conditions in that.

[3:42:51] One is that we will serve a commercial load only at this time.

[3:42:56] And the second is that we were kept at a maximum of 110 million kilowatt hours.

[3:43:05] The model established at the outset by City Council was that the utility would serve as a business attraction and retention tool.

[3:43:17] And in that it also was to provide for benefits to agencies such as our school district which benefit from the discount that we offer from Edison's rate.

[3:43:32] So essentially the model that we have is that we take the Edison chatter that applies to a business and they have a host of tariffs.

[3:43:40] And to that we apply a five-person discount and that's how they benefit from getting into receiving service from seritos and we on the other hand benefit by having the business wanting to stay in seritos.

[3:43:59] Next slide, please.

[3:44:04] There have been a few issues in terms of how this utility could grow and become more profitable.

[3:44:11] staff has been looking at this since its time and commenced operation.

[3:44:21] One of the things which I think Ryan mentioned earlier on in his presentation was talking

[3:44:26] about the debt.

[3:44:29] The utility business is very capital intensive.

[3:44:32] The Magnolia Power Plant, as a was financed through a bond payment arrangement, Serito's

[3:44:41] pays approximately 900,000 a year towards its responsibility in that regard.

[3:44:48] That goes on through 2035-36,

[3:44:54] and also Brian also mentioned that since the dissolution

[3:44:57] of the agency approach.

[3:45:00] Section of that has been offset by payments from the rocks. That's close to a wash on the bond payment itself. However, the general fund had loaned money at the outset to the utility in order to meet all of its other obligations, and that debt has grown to close to $25 million at this time.

[3:45:27] If you were to strictly look at a snapshot in terms of what a single year's revenue would

[3:45:34] be towards the expenses, I'm happy to report that in the past few years the utility

[3:45:42] of either being close to breaking even or even been in the black 2018-19 data, which is

[3:45:50] complete and looked at shows that the utility was about 300,000 to the good, but that's

[3:45:59] only the snapshot looking at what the expenses are towards the direct operation. It does

[3:46:05] not account for the debt, the city, general fund has to receive in terms of interest and

[3:46:14] principle itself. Moving on to the business, what can be done, how can it be

[3:46:21] improved? There was a portion I want to touch upon. There are a few outstanding issues

[3:46:29] that the utility can still be challenged by, and this is not something which we have

[3:46:37] The regulatory positions, those are new mandates that have come down since the facility

[3:46:45] or the utility started.

[3:46:47] Magnolia, which is powered with natural gas, was the state of the out of that time,

[3:46:53] shown to be clean burning fuel and so on.

[3:46:56] But as Council is aware, it's a fossil fuel, and today's market conditions,

[3:47:02] Those are that particular type of energy resources not looked on favorably.

[3:47:10] Therefore, the utility is attracted to additional depositions of financial

[3:47:16] depositions in the form of capital trade.

[3:47:19] There's also a renewable component that the utility needs to

[3:47:24] bring into its fold in terms of percentages.

[3:47:26] So those are some issues that we really don't have control on.

[3:47:33] Staff monitors all of the potential builds that are out there, but are being given the

[3:47:39] size that we are really don't have too much in terms of being able to look at that and influence

[3:47:46] that new builds that are coming about.

[3:47:49] The second issue was the important one to look at, which is the market risk.

[3:47:54] Given that the, the, the ceritos electric utility is largely dependent on

[3:47:59] being Nolia, which is a natural gas-based power resource.

[3:48:05] The problem we have is that we are at the market's machines, so far as natural gas prices

[3:48:13] are concerned.

[3:48:13] We have been lucky in the last two or three years where the gas prices have gone down significantly.

[3:48:22] And therefore, our production costs in order to create electricity has been favorable in comparison to Edison or other utilities.

[3:48:33] Therefore, even by giving the fibers in discount, just on that snapshot basis, we have been able to be in the black or close to break even.

[3:48:43] However, there's no guarantees that gas prices are going to stay the way they are.

[3:48:48] We have locked in gas prices for the next fiscal year.

[3:48:52] We've got a really favorable number again so that votes well at least for fiscal year 2020-29-21.

[3:49:03] The last item that we have, which is again something which is cost for concern, is the customer load.

[3:49:10] We are, as I mentioned, allowed under our agreement that is in to serve as much as 110 million kilowatt hours.

[3:49:19] However, at this time, you're selling, as you saw in the previous slides, some vehicles to 66 million kilowatt hours.

[3:49:30] There is no guarantees that customers will stay with us just to get the 5% discount.

[3:49:35] they may be able to go to other sources and get better discounts. It has happened in the past.

[3:49:42] Citrus Community College was one large customer we had. They then ultimately consolidated

[3:49:47] other community colleges and went and found power at a more attractive rate. So all that said

[3:49:55] what ends up happening when we lose load is then we have more power than we can sell and the fixed

[3:50:01] cost not change as you can realize. So therefore we are definitely as a disadvantage. So

[3:50:08] these are three major issues that we'll try to control as best as we can, but as you

[3:50:15] can realize this is not completely within ceritos' ability to control. Going out of the last slide,

[3:50:22] This was really the whole question or the question that came, especially from Mayor Pro

[3:50:30] Time.

[3:50:31] So I'll spend a little bit of time on this.

[3:50:33] The first column shows the sales that are achieved in the 2019 calendar year.

[3:50:40] We sold approximately 50 million kilowatt hours to commercial customers.

[3:50:47] balance of 16 million was used up in city facilities, and so from the head, limit that I

[3:50:56] mentioned, 110 million, a 44 million went un-utilized. Now, it doesn't mean that we

[3:51:03] produce this electricity and sent it back to the grid. What it means is that there was

[3:51:09] that we could not utilize.

[3:51:13] Now, the second column or the third column shows you the revenue, strictly using

[3:51:20] Edison's Tata of Rates, and the commercial would have been 3 million, 863,000 dollars

[3:51:28] approximately.

[3:51:30] What we charge those 50 or those commercial customers is a little over 3.6 million dollars.

[3:51:38] So consequently, to answer your question, the discount that was given to those customers was

[3:51:46] 100 and 93,000 approximately, I should mention that off this customer's significant portion

[3:51:55] goes towards the school district, they utilized somewhere in the range of 15 to 16 million

[3:52:02] and that translates to approximately a $45-50,000 savings just because they obtained power from the city of Syritus.

[3:52:15] The city, at the outset, has established that its own accounts will not receive a discount,

[3:52:23] and therefore you see in the second line, you see the 1.1 status same.

[3:52:28] Now, the discussion was also, or the inquiry, so I should say, from Council was also about

[3:52:35] residential load, going back to the enabling agreement with Edison,

[3:52:42] the two important issues.

[3:52:45] There, one was the limit to what we could sell, which was the 110 million.

[3:52:49] The second issue was, at that time, what of the opinion that ceritos electric utility cannot serve residential load?

[3:53:00] Since then, the market has changed, as Council is aware, there are community choice aggregators in the south data southern area, several cities are signed up for that.

[3:53:11] And our recent discussions with Edison indicate that they are open to allowing us to serve residential load.

[3:53:20] But the issue is that if City Council was to direct staff to open up the utility,

[3:53:28] make it available to residents, given the average use that a typical household uses,

[3:53:35] The 15,500 homes roughly would require as much as 170 million kilowatt hours.

[3:53:46] We only have 44 million.

[3:53:48] So at this time, we are now looking at options to increase that limit that was imposed on the city.

[3:53:56] the 110 million if everything goes well and we are able to find a way to increase that

[3:54:03] to 220 to 130 million kilowatt hours available every year. At that point it would be

[3:54:11] a natural for us to then see Council approval to offer it to the entire city

[3:54:16] population. However, if for several other reasons I won't get into a lot of detail

[3:54:23] as you want me to, if that's not possible, then in the near future, once you have concluded

[3:54:28] our research, our intent would be to come to you with a proposal or several proposals on

[3:54:36] how to make this 44 million number available to count to residents. It could be based on several

[3:54:47] parameters. It could be first come first. It could be based on age or income or a combination

[3:54:52] there off. So that's in a nutshell kind of a response to what was your direction was to us.

[3:55:03] Additionally, I should also add that in serving residential load, there are a couple other

[3:55:10] cost factors that may come in and we can discuss that at a later time. I think it's on the next slide

[3:55:17] If you could forward this slide please,

[3:55:22] it's not.

[3:55:23] So the additional costs could come from the third party

[3:55:28] contract of use for billing.

[3:55:30] At this time, they generated 300 bills a month.

[3:55:33] If you would ask them to go up to 15,000, 10,000,

[3:55:38] whatever the number is, you can imagine

[3:55:40] there's going to be additional costs there.

[3:55:42] We have already started discussing with them

[3:55:44] on what that would be, or what a tier approach would be, for example,

[3:55:48] because not everybody is going to sign up on day one.

[3:55:52] The additional issues is that with our experience,

[3:55:55] with the water utility, there is going to be a significant addition

[3:55:59] in terms of customer service, in our questions about bills

[3:56:04] and missing bills and so on.

[3:56:06] So there will be additional potential costs there on.

[3:56:10] So those are items which are not clearly defined at this time,

[3:56:15] but we are looking to those as well.

[3:56:17] And like I said, here's that 34 million or whatever the number is, is the only available energy that we have.

[3:56:25] We will be coming back to you soon, have to be complete a research.

[3:56:29] It concludes my comments on this item.

[3:56:31] If you have any questions, I'll be happy to take.

[3:56:34] Thank you, Kanap, for the extended report.

[3:56:38] I have a question.

[3:56:39] If not, you have power, project, and Bollerado, how much is we're getting it from age?

[3:56:43] Do you have that number?

[3:56:47] Yes, sir, the Magnolia power plants we take 4.2% of its output in the calendar year 2019.

[3:56:59] What we do, I should give you a little more background.

[3:57:02] What we do is on a daily base, we actually lay out on an hourly base.

[3:57:09] What our taste will come from Magnolia power plant.

[3:57:12] So it's a pretty extensive operation.

[3:57:15] So the evening hours, the night hours when the load of the requirement is not as much,

[3:57:21] we can go down to as low as 7, 7,000 kilowatt hours.

[3:57:28] And then that ramps up during the day.

[3:57:31] There's again an urban flow during winter months, again, some months or much higher and so on.

[3:57:37] So if I was to make, if you're a number, it'll be somewhere in the range of about 60

[3:57:41] million kilowatt hours.

[3:57:48] The Boulder Canyon or the Hoover project that gives us some

[3:57:52] very close to about 7 million. Again, that's predicated on the water flows and so on

[3:57:59] so forth, but it's a much less expensive resource and we are looking for additional

[3:58:06] opportunities where we can get more power from that resource.

[3:58:11] The third component or the third resource that we tap, which we have to tap on some

[3:58:18] of months, especially the market, especially during the 11 AM to 3 PM time frame when you

[3:58:27] have a spike, that's when we go into the market and by short strips of power if you will

[3:58:35] to meet the demand. What is the pricing difference between

[3:58:39] Magnolia power power? What's the price of a Magnolia and

[3:58:43] formula over? Magnolia power plant at our, for example, now with,

[3:58:50] with our TNF to $4 per unit gas cost, our all-in cost,

[3:58:57] is somewhere in the range of about $48 to $50 per

[3:59:03] megawadar if you were to compare that to Boulder Canyon that will be somewhere that I

[3:59:08] range of about 30. So it's a significant saving just based on the gas prices as they are

[3:59:15] today. Now that can change it is a commodity that is traded in the market and though we

[3:59:22] try to buy strips of power of gas, we still have some little bit that we have to make up on a daily

[3:59:31] And this powers are also required by state, right, to be able to accept a model for power.

[3:59:40] Was this was required by state?

[3:59:43] The states in position I mentioned briefly was the renewable power.

[3:59:48] When we started the utility, renewable power was something that was being discussed.

[3:59:53] By 2007, eight, it started becoming a mandatory requirement.

[3:59:58] Initially the

[4:00:00] Percented was set at about 25 percent. In other words, out of the 100 percent powers that a utility dealt with, it needed to add 25 percent.

[4:00:10] That has grown now. It ultimately, by the year 2040, they are looking to have at least 50 percent of the portfolio drawn from renewable power.

[4:00:20] So, Magnolia is not a noble power, neither is Bola Canyon, so, consequently, Serritos has that big burden to consider as well.

[4:00:34] So, what we have to look at wind and solar or what?

[4:00:39] Wind, solar, small hydros, there are a few other geothermal.

[4:00:45] So those are the kind of technologies, there are new technologies, there's storage that's coming

[4:00:51] up, so batteries are becoming better, so all of these technologies are improving on a daily

[4:00:57] basis.

[4:00:59] So sooner or later, serritos will be compelled to enter into those markets as well.

[4:01:05] And on this commercial business, I know the school district is the largest one probably

[4:01:09] customer. Do we have a contract with all these schools and other commercial that how long we need to provide

[4:01:15] or is it month to month or they do decide tomorrow or they want to continue with us or that

[4:01:21] has works? We have them all on the contract and though there is a contract in place,

[4:01:29] I think within a 60 day notice, a customer can leave. Conversely, the city also can give a similar notice

[4:01:38] in case it decides for some reason that it does not

[4:01:42] want to serve a customer.

[4:01:44] So there are termination classes.

[4:01:47] The community college that I mentioned took that option

[4:01:51] when they came upon a better opportunity,

[4:01:55] and they left to join a different consortium.

[4:02:01] Thank you.

[4:02:01] Thank you, kind of, for the report.

[4:02:04] And all right, at this time, the council has a question.

[4:02:07] I'll start with a councilman here.

[4:02:10] Well, my question is, do we need a break?

[4:02:14] Yeah, it's almost four hours meeting right now.

[4:02:19] Four hours.

[4:02:21] I don't know.

[4:02:22] Do we want to put the next council agenda then?

[4:02:26] Yeah.

[4:02:26] Or do we want to put it in this item and let's say,

[4:02:29] do we want to continue councilman here?

[4:02:31] Or should we put it for the next council meeting?

[4:02:36] Well, I just need a break.

[4:02:37] We just need to make, okay, all right, should we want to take now or just finish with

[4:02:42] Kana's questions?

[4:02:44] Well, okay, finish Kana's a question.

[4:02:47] All right.

[4:02:48] So do you have any questions for Kana?

[4:02:49] Yeah, thank you.

[4:02:52] Okay.

[4:02:52] Council Member Yoke Yamma?

[4:02:57] No, thank you.

[4:02:59] Mayor Portem Wolfe.

[4:03:01] Yes, I'll make this quick, so we can take a break.

[4:03:04] I would just recommend to my council colleagues that if we are going to move forward.

[4:03:07] First off, I appreciate the report that we're going to be possibly able to serve our

[4:03:13] residents and not just our business, so that looks like there's an increase in revenue

[4:03:17] for us with all that available power that's not being used.

[4:03:21] It's nice to be able to now apply to our residents.

[4:03:24] I would just recommend that we wouldn't increase our supply.

[4:03:29] This power supply has been a source subject for us for years.

[4:03:33] So I would just recommend moving forward with what we have in providing to the residents

[4:03:37] with what we have left and going along the same lines with Mayor saying that, you know, we

[4:03:43] may have business accounts now, but because of this COVID and anything moving forward, we

[4:03:48] may lose those accounts and so there will be more power to provide to our residents.

[4:03:54] So I would just recommend staying with where we're at and not increasing our load and paying

[4:03:57] more money and the positive you stuck with that moving in the future.

[4:04:01] Thank you.

[4:04:01] That's all.

[4:04:03] Thank you.

[4:04:03] All right. So, with that, can we take maybe 10 minutes break, 5 minutes break?

[4:04:12] Everyone?

[4:04:18] Thank you.

[4:04:19] Thank you.

[4:14:02] You can proceed with the meeting.

[4:14:08] Okay, I will very speak to you.

[4:14:10] Yes,

[4:14:18] we can take a roll call.

[4:14:20] I don't say everybody.

[4:14:22] Yeah, I don't know what in my screen I don't say anybody's picture.

[4:14:31] Okay, one moment please.

[4:15:45] Put the meeting? Okay. All right, we're back on. Thank you all. We have about 1, 2, 3, 4 item. If the council don't mind, I'd like to continue this until the next council meeting.

[4:16:03] You are based on the time and fact the staff may need to come back tomorrow for work.

[4:16:09] I would actually make a motion to continue these items to the next council meeting since

[4:16:15] this is for information only.

[4:16:17] No action needs to be taken on these.

[4:16:21] There's a second on that.

[4:16:26] All right.

[4:16:28] So, we don't need roll call on this to put this idea for next council meeting or what do we.

[4:16:34] I've shipped mayor I can take a quick roll call.

[4:16:38] Council member who?

[4:16:43] Council member who can I have you unmute your microphone?

[4:16:46] Thank you.

[4:16:48] Okay.

[4:16:50] The volume is there.

[4:16:53] Council member who?

[4:16:55] Yes, I'm here.

[4:16:56] Can you hear me?

[4:16:57] Yes, there was a motion in a second to table these items

[4:17:02] or continue these items to the next meeting?

[4:17:05] Next regular meeting?

[4:17:06] Yes, I actually second the motion.

[4:17:12] And Yoko Yamaha?

[4:17:15] Yes.

[4:17:18] Vote.

[4:17:21] So, Lunky?

[4:17:22] Yes.

[4:17:23] The motion passes for zero.

[4:17:26] OK.

[4:17:32] So, I have to put the public to speak on the next item, too.

[4:17:35] Right, we're going to continue on that.

[4:17:39] I could defer to the city attorney, but at this time,

[4:17:42] We have one member of the public who has raised their hand to speak.

[4:17:47] Okay, if we just want to let's go and let them speak.

[4:17:50] So I will open it at this time.

[4:17:52] I will open up the public comments on the item 98.

[4:18:00] Are there any members of the public who wish to make public comments?

[4:18:03] This item will be continued to the next regular meeting if you would like to defer your comments

[4:18:07] until that point.

[4:18:10] Mr. Mayor, we have one speaker.

[4:18:13] Did you look asca please unmute your microphone and begin your comments?

[4:18:24] Oh, so is this the

[4:18:26] Are you ending the meeting now or?

[4:18:30] It'll be continued until next week.

[4:18:32] Next council meeting.

[4:18:34] Okay.

[4:18:34] But I just have a question.

[4:18:37] Okay.

[4:18:39] Go ahead.

[4:18:41] Uh,

[4:18:45] never mind.

[4:18:46] I'm sorry.

[4:18:47] I'm sorry.

[4:18:48] I just asked it in the next one.

[4:18:50] I'm sorry.

[4:18:52] Okay.

[4:18:53] Thank you.

[4:18:53] Thank you very much.

[4:18:57] Thank you.

[4:18:58] We'll close the public hearing on this item.

[4:19:00] I need.

[4:19:02] We have counsel comments but in light of the time and everything we'll

[4:19:08] postpone this until the next meeting.

[4:19:12] And this time I will adjourn the meeting then.

[4:19:16] Thank you all very much. Good night.

City Council Meeting

Agenda

Transcript