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Mayor, you can start the meeting.

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Thank you.

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Good evening.

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

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City Council and the successor agency regular meeting on month.

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Sorry, this is April 23, why this is 20.

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Twenty-thirds.

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This evening, the invocation will be led by City Clerk.

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the pleasure we double on.

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Adam City Clerk.

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Thank you, Mr. Mayor.

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This meeting will also contain an item from the adjourned regular meeting from Monday, April 20th.

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Okay, that's good.

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Let us pray.

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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.

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Amen.

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Thank you. It is time for please join me on a pledge of allegiance.

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I pledge allegiance

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to the flag of the United States of America, into the Republic for which it stands,

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one nation, under guard, indivisible liberty and justice for all. Thank you.

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Madam City Clerk, will you please conduct the roll call?

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Thank you, Mayor.

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At this time, I would like to conduct an oral roll call and request that each council member

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respond with present when their name is called.

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Council and Agency Member Edwards, it will be absent for the meeting as this time we will

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entertain a motion to excuse.

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I'm at the motion.

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So second.

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A motion has been made by Councilmember Salonke and second by Councilmember Who, Rokal Who.

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I, Salonke.

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I.

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Go.

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Yoko Yama.

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Here.

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This vote is to excuse Councilmember Edwards from the meeting.

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Mr. Councilmember Yoko Yama.

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motion passes for a. This will conclude the roll call with four council members present.

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Thank you.

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We will now to move to the public comments. I would like to remind all the public speaker

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to use respectful language and behavior during public comments. We value your inputs

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but the city council does not allow or support the use of profanity or hateful speech in our meeting.

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Public speakers should direct their comments to the City Council.

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Madam City Clerk, can you please provide information regarding the public comments?

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Thank you, Mr. Mayor.

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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.

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

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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.

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public comment during the night's meeting. We have not received any email or other written

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correspondence regarding consent calendar items or items not listed on tonight's agenda.

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At this time, the speakers who would like to provide audio comment on the items which are not

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listed on tonight's agenda please use the Zoom raise your hand feature or if joining by phone

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

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limited to five minutes per speaker. Speakers will be automatically muted at the five minute mark.

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

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Thank you.

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Good evening.

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My name is Toby Balma.

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I have been an active and proud Serritos residents since 1969.

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Well, I am speaking tonight as an individual.

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Like, represent a number of other Serritos residents.

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My comments tonight are about the April 9th, the Rado City Council meeting, specifically

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the last 10 minutes.

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I was surprised at the public hearing section at the beginning of the meeting when one

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of the residents essentially encouraged council members to quote the nice with one another.

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In fact, I thought the comment was strange.

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However, I was not prepared for the closing comments at the end of the meeting.

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I want to remind each council member that you are elected public servants,

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and are expected to serve the residents of Serritos,

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and behave in an adult, professional manner in public.

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what you do in private or in a closed meeting is up to you. I now want to focus my

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comments on Mayor Salonke. I recommend our residents watch at least last 10

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minutes of the April 9th Council meeting. Your remarks at the end of the meeting

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interrogating and accusing another council member of being a liar was inappropriate.

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

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I could not believe what I was hearing.

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In my opinion, your behavior and comments or an embarrassment view to the council, to the city and to the residents.

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you owe everyone, including the accused council member and apology. If anyone was to be

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censured Mayor Salonke, I believe it would be you. If the city does not already

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have a code of conduct for council members, I recommend one be creative. Thank you.

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At this time, I will call on speaker, Mel Cortez, if you could please unmute your

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microphone and begin your comments?

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Yes, hi.

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Non-cortez, a real resident.

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For right now, I have a question about

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town hall meetings.

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Last Saturday, January, I did bring it up

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and regarding town hall meetings

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sponsored by council members,

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my question is,

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and back then, are these town hall meetings

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this sponsor or the personal events.

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It's a city sponsor.

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Hacam, we cannot find the information on the city's website

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or any public place.

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Now, everyone's from Facebook.

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Today, I found out there was a time home in yesterday.

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But if we come from the city council meeting

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and we are told that there'll be a time home meeting,

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That means that all of us residents should know about it.

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Last January, I'll see the council, the same questions.

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It's a city or a personal meeting.

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Back then, I asked about the use of city facilities for such meetings.

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Or the use of city flyers to promote town hall meeting in a personal or public.

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I also question the usual shareout and hotel lobby,

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Fandara, because money to actually have millions in the lobby.

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Did the city pay to rent this lobby or would say that gift to whoever did the meal?

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I did ask and mayors Alanke ask the city attorney about this issue.

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The city attorney said,

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I don't know.

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

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

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And I hope all you get along was disappointed the last two weeks ago.

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the display of all your percent of 50,000

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residents and some things need to be spoken in private.

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We might agree with the things that are done but all your

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percent us and whatever happens there, people look at

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residents and say, that's your city. Thank you, that's for

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That's all for Rina.

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At this time, I'd like to call on Speaker Daisy Lagosca.

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Please unmute your microphone and begin your comments.

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Hello, can you hear me?

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Yes, we can hear you. Please begin speaking.

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Okay. Good evening to the city council.

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Our mayor and mayor, Pro Tem and the other city council were there

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and our neighbors. Good evening.

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Regarding, I think I have opinion regarding that two weeks ago,

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what's going on in my opinion going on in the city hall right now is like there is no team.

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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.

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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.

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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.

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So, I think, in my opinion, what Mayer Sri Lanka did for talking in front of everybody.

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

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We just want, you know, that our city council to work as a team.

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It's not by personal or, you know, it's me, it's mine, it's I think, it's supposed to be

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we,

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regarding to that city, uh, down home meeting, um, I agree with Mel, um, it's it

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personal or by city because it's not on the city website and then last night I attended

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council member Yokoyama's town hall and you know it's like he just did the talking

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it's not even like he answered one question that can be answered by yes or no but he just

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on talking and talking and talking and you know he said himself that he is not sure about the

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

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one talking of everything but you know seriously I did not even understand I did not even get it

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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.

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This is a worldwide emergency.

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We need a teamwork here. It's not just, you know, individual. Thank you.

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

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A

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note that if you could please unmute your microphone and begin your comments.

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Thank you.

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Can you hear me now?

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Are you a very low speaker?

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Can you can you hear me?

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Yes, that's better.

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Thank you.

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Please begin your comments.

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Thank you very much.

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Good evening Mayor Honorable Mayor and the Honorable Council members.

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My comment is regarding the agenda item that you guys are going to discuss

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on the deficit that the city is going to face because

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On the right, and we got to wait until we speak on the right.

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

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Okay. Thank you.

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Thank you, Mayor, appreciate it.

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At this time, we'll call on speaker Sam decide. You could please unmute your microphone.

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Thank you, Mayor. Council.

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Today I'm here representing some good news in between all the stuff which is going on.

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I am going to work with my team to launch Serator's newspaper, which focuses on a

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to please look forward to looking at ceritos response

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to how we gather as a community,

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how we

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created different standards as we move forward over next few months into uncharted territories.

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This newspaper is in turn based, ceritos residence based, and it will be available to download

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as well as the print copies.

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If any servitors residents would like to get their free copies and the word is free copies,

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

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I want to say thank you to everyone for coming together and help us create the

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cereals that we all know that we are. Thank you.

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Mr. Mayor, we have no other individuals who have stated that they would like to speak.

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You can declare the public comment period closed.

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Thank you. At this time, there are no other individuals who are requesting to speak.

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We'll declare the public comments up here close, and next we'll go to the concerned calendar.

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Now I have a motion to approve the concerned calendar.

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Okay, if I can separate item 7B, I can send the comments and questions on the rest of the demands.

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Okay.

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

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To approve for 7A.

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We wait for council member Vol to see his questions.

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For 7B, so we'll approve 7A.

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7A motion.

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Here's second.

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Second.

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Okay. All in favor.

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Hi. Hi. Hi. Hi. Okay.

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Madam, I'm glad we need a roll call on this item or.

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No, Mr. Mary, I did hear all of the council vote unanimously.

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Okay. So, I made a roll. I mean, Madam, may I welcome you?

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Do you want to discuss the seven.

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Do you know?

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Yes, it was okay with you, sir.

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You know, just real quick, guys.

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Considering that we're going to budget and

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We'reifying that we are spending money wisely.

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I wanted to take a look at the registry of demand.

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And a couple of questions just came up.

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And it's just, this is questions that's probably,

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just because I'm fairly new and I need to know.

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And I have a question in regards to a couple items.

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One of it's going to be on page five or two.

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There's two patient numbers on this one page.

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And it's open to staff.

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Can't just clarify what this purchase was for.

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It's the ACCA video package.

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I just wanted to go on record to find out what that package was for for the CCCA for

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120,000 foreigners to see $2.32.

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And also the other one was it's a name corporation just wondering what that was

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fourth called and that was on the age four.

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of these four or page one, and that says Car Rust Corporation, CARUS Corporation.

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That was for 6,085.

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

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Mayor, if I may, I think I can cover those questions for you.

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This is Ryan Terry, a finance manager.

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The question you were asking relating to the CCPA video package,

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of $128,000. That was a capital equipment acquisition that was approved in the current fiscal

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year budget for some new video equipment over at the CCPA that included some projector,

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projectors, television monitors, mounting hardware and those type of items. Again, that

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an item that was previously approved in the capital equipment budget for the current fiscal year,

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and so that was part of our updates to some of the video equipment that we use over at the

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CCPA. As it relates to the item relating to carous water, that is a chemical purchase that we

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used to treat the water through our water department. It is a regularly occurring expense that we

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Do incur as part of our efforts, obviously, to treat and maintain a safe source of drinking water.

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So I hope that covers your two questions then.

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Yes, thank you very much.

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And then the other, the only other question I had with regards to on page 18 or 11,

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regards to Southern California, is in company for electrical power.

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My thoughts or my impressions were that initially,

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We provide our own electricity to our own facilities and we have solar and the question is how come

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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

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Come on you take that please say if I may I may a program. This is kind of much insurance

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we have

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pretty much

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

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

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What remains on a very, very few are related to irrigation controllers, to a few street lights,

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some of those accounts are still with the Edison, and we have not changed them over.

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It's just a small amount.

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So therefore, we've let it go.

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Now, this particular number that you mentioned, I've not been able to find it yet,

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But essentially, all of the streetlights in the city, most of the streetlights are owned and operated by Edison.

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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.

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So they are still under Edison so far as control.

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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

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between Artisha and South Street on through the Bigger Road.

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I hope that response to your question.

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Thank you, Connor.

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Yes, thanks for clarifying.

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In regards to the power poles or street lights that we're currently paying attention.

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That's something we can also transfer over to us.

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that way, we don't have to pay for that bill, or is that something that's

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arrayed, or agreed upon with it?

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Now, that, unfortunately, there is a tire of established for street lights.

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They own and operate and maintain those street lights.

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The city does have the option in several cities.

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The state might have done that to buy out these light standards, if you will, in which

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case you could supply our own power.

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

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Okay, thank you so much, and I'm filled with that, thank you.

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

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Yeah, motion to approve.

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Okay, all in favour?

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All right, all right.

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All right.

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All right.

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Take care of the constant color next.

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We have under new and all business item nine A.

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Tonight we have no public getting the next item on the agenda.

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Is new and all business starting with the item nine A.

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City manager who will give report on this.

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Thank you Mr. Mayor, members of the council.

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

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Annie.

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Thank you, Mr. Gallucci.

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Good evening, Honorable Mayor and members of the City Council.

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On April 10th, the County of Los Angeles Department of Public Health

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extended the safer at home order to be in effect through May 15th.

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In response to the order, all city facilities will remain closed

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to the public until at least May 15th and until further notice.

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A list of facility closures is available on the city's website at

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to readows.us. On April 13, the City Manager signed an issued executive order number

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2020-1 extending the existing proclamation of a local emergency through the duration of the local

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emergency period in the city of Serritos. The order continues the suspension of the following,

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parking enforcement, shut off of city water service due to overdue payment and requiring planning

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commission and or city council actions to approve major precise plan applications for single

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family residential or commercial exterior remodeling with no expansion of the commercial buildings.

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The order also established a tenant eviction moratorium as authorized under the California government

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codes. Under this moratorium, landlords are prohibited from evicting a residential or commercial

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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.

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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.

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Cerritos residents and businesses will start receiving the newsletter in the mail tomorrow.

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The information will also be posted in the news section of the city's website.

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

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at the parking structure of the Belfour Civic Center located at 1,600,000 civic center drive.

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

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who have symptoms of COVID-19.

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Appointments are necessary for testing.

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Information about how to schedule a test appointment is available on the website, L.A.

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COVID-Prod.service-now.com forward slash RRS.

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People who do not have internet access can dial 211 for help with making an appointment.

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

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This number increased to 45 cases as of noon today.

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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.

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The city is carefully monitoring information about when and how city facilities will be allowed to reopen.

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Los Angeles County Department of Public Health Director Barbara Ferrer spoke of certain strategies being in place

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

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Dr. Ferrer said things will be different as businesses reopen. Social distancing will still be

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important. Retail stores will have limits on how many people can be in a store at any given

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time so that people who are there can maintain a lot of distance between themselves.

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On April 14th, Governor Gavin Newsom outlined six critical indicators, the state will consider

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

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the state home order, but that these six indicators will serve as the framework for making

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that decisions.

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The indicators address areas such as testing and contact tracing, preventing infection

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in vulnerable people, ability of hospitals to handle surges, development of therapeutics,

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ability for private and public facilities to support physical distancing, and the ability

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to reinstate state home orders if necessary.

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The fifth indicators are listed in the news section of the website located at COVID-19.ca.gov.

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In addition to disseminating information through the website and newsletter, the City is distributing COVID-19 updates

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to e-new subscribers to the topics of breaking news and emergency information.

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Community Emergency Response Team Disaster Preparedness, Serritos Neighborhood Watch, city news, and a crime prevention information.

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Community members are encouraged to sign up for the city's EAT.

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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.

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

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The sign-up form is located under the stay-in form section of the website https

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call in forward slash forward slash COVID-19.lacounty.gov.

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

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Thank you, Annie.

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For the report.

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If the council has a question, I will start with a council member here, do you have a question?

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It's all thank you.

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Thank

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you

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for that report, Annie.

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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.

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And also, we are in a local emergency,

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our city of Sriddle says declared a local emergency

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because of the COVID-19 pandemic.

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I just, again, I'm glad we're getting these updates

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at the meetings, but I'm,

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I opinion,

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we should be more regularly giving our residents

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updates, we, I'm glad we're sending out emails.

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And I'm glad that we are sending text messages.

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

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But I know that I know that we're not sending out emails and text messages daily.

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And things are changing daily, you know, forgive me if I overlooked it, but I did try to look

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up and read the city emails that I signed up for and I believed that the last city email

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I got and again, Annie, forgive me if I overlooked one, but the last city email I got was sent

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on Friday.

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And, you know, I hope that I overlooked some or overlooked one and there was one

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cent since Friday, but that was the most recent one I could find. That was the most recent

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email I could find. Since Friday, how many emails have we sent out any to our residents

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updating them about the City of Sereto's COVID-19 response?

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The most recent email that was distributed was last Friday.

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Okay, so that's six days ago and I think I believe just from communicating with residents

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that they would they really want information.

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

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or from the county of Los Angeles or from the state or from our sheriff station or from our community

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safety office.

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You know, we should consider emailing that out to the residents or texting that out to the residents

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because it's my opinion that the last COVID-19 pandemic response email from the city going out

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Friday. It's my opinion we're not sending out updated information enough. I also wanted

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

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available to please give us an update on our

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suite of sheriff stations so we can just know that

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measures have been taken to ensure our deputies and

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our suite of station personnel and our

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suite of station deputies and Captain Minden and

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public safety manager, derelevens are all safe and

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sound.

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So we please get an update about that deputies tested positive

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or COVID-19.

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Yes.

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Councilman, Darrell, would you take the first part of that

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00:35:08,370 --> 00:35:10,630
in the capping for the finish-up?

384
00:35:11,270 --> 00:35:11,570
Yes, sir.

385
00:35:11,730 --> 00:35:14,650
Hello, Mr. Mayor and Councilmember Yokeama.

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This is Darrell Evans Public Safety Manager.

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You know, I think this will be best answered by Captain Minden

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who can give you a status report on what happened then

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and the efforts to safeguard the deputy's reputation

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and then the state of the deputies that were subsequently tested after initial contact.

391
00:35:33,970 --> 00:35:37,410
Captain Men, can you provide a general briefing on the status of the station?

392
00:35:42,160 --> 00:35:42,460
Hi, sir.

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This is Captain Den, a good evening, an honorable mayor and council members.

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

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like to take this opportunity to first thank all council members, and I'll see the manager

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for your leadership during this difficult time.

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Secondly, I would like to say thank you for the continuous support of our mission to provide

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police services to the resident.

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To answer your question, on April 11, 2020, we'll receive information about Serito Sheriff

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and Poise being exposed to a liquid deputy who tested positive for COVID-19 on the day before

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which is Friday, April 10.

402
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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.

403
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And on April 11th, he received information that has come back positive.

404
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We took every measure at the time to contain all personnel who have been exposed to this

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person.

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The number was 8 personnel assigned to the desk area as well as our deputies and our

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watch commander.

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All were quarantined and they were tested and they came back negative.

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They all came back to duty as we speak.

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Also, we notified, we took the step to clean the area immediately after the notification was taken place.

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And I informed Mr. Darrell on that same Saturday morning when I learned about that exposure.

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So at this point, we are fully operational and I'm pleased to find.

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That's all I got, sir.

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It's very, very happy to hear that that everybody, everybody is fine as of today, given

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the exposure.

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And how is the deputy who tested positive, kept in, again, have we received an update

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about that deputy's health as well as his family?

418
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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.

419
00:38:12,490 --> 00:38:24,430
Okay, well thank you and your assurance to us on the council and to the residents that the suite of sheriff station is

420
00:38:24,430 --> 00:38:32,530
It has is safe and sound and you and your deputies and the personnel and staff are safe and sound.

421
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That's very reassuring.

422
00:38:34,390 --> 00:38:35,480
Thank you so much, Captain Den.

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That's my question please.

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00:38:52,750 --> 00:38:53,130
Mayor Kim.

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Thank you.

426
00:38:53,730 --> 00:38:54,030
You're welcome.

427
00:38:55,590 --> 00:38:57,110
What do you have questions?

428
00:38:59,150 --> 00:38:59,650
I do not.

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00:38:59,990 --> 00:39:00,990
Thank you.

430
00:39:03,050 --> 00:39:03,910
Any I had a question.

431
00:39:04,410 --> 00:39:08,550
I know we're not updating daily, but there is a county board of supervisor.

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that gives news every day, pretty much at noon time,

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00:39:12,830 --> 00:39:16,490
and we are pretty much extension of whatever the company does, right?

434
00:39:17,330 --> 00:39:21,190
That is correct, Mayor, every day at 1 o'clock,

435
00:39:21,630 --> 00:39:23,990
the LA County Department of Public Health

436
00:39:23,990 --> 00:39:27,850
and the Board of Supervisors members provide an update

437
00:39:27,850 --> 00:39:32,330
and they stream that live over their YouTube channel

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and their Twitter feed.

439
00:39:35,010 --> 00:39:37,250
So that is available, and it's also covered

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00:39:37,250 --> 00:39:44,670
by the broadcast news media within the area, and they of course also send out that information

441
00:39:44,670 --> 00:39:52,110
as an email at typically later in the day, and the county does distribute emails as appropriate

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00:39:52,110 --> 00:39:58,810
when the county is offering new programs or services, and we typically blame the information

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00:39:58,810 --> 00:40:04,790
that is pertinent to the city of Serritos and add our own if we have any new city information

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00:40:04,790 --> 00:40:07,590
and then distribute that through our channels.

445
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Thank you very much.

446
00:40:09,190 --> 00:40:15,770
And I know I also receive regularly pretty much on a daily base email from our own

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00:40:15,770 --> 00:40:19,750
carnivore of Supervisor, Jonathan, and gives pretty much all the information.

448
00:40:20,010 --> 00:40:22,730
And I know it goes to all the residents who have signed up on it.

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So thank you for the report.

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Now I will open it up for the public comments if any would like to have a

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00:40:29,110 --> 00:40:31,110
on the item 9A.

452
00:40:32,370 --> 00:40:35,030
Do we have a speaker on this item?

453
00:40:35,710 --> 00:40:36,470
Thank you, Mr. Mayor.

454
00:40:36,650 --> 00:40:39,590
We have not received any written correspondence on this item,

455
00:40:39,810 --> 00:40:42,610
but we have several people who would like to speak.

456
00:40:42,810 --> 00:40:45,150
At this time, I will call on speakers.

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00:40:45,430 --> 00:40:47,970
Sophia, say if you could please unmute your microphone

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00:40:47,970 --> 00:40:49,250
and begin your comments.

459
00:40:55,540 --> 00:40:59,280
Sophia, can you please increase your microphone?

460
00:41:01,560 --> 00:41:02,860
Yes, that's a little bit better.

461
00:41:02,860 --> 00:41:05,320
Thank you. Okay. I need so few of that.

462
00:41:06,480 --> 00:41:10,520
Are you breaking off? We cannot get any different.

463
00:41:11,720 --> 00:41:14,740
Hey, how are you now? Yes.

464
00:41:15,340 --> 00:41:18,280
Regarding COVID-19, yes, we do it.

465
00:41:18,360 --> 00:41:21,400
We seek the information about the number going up.

466
00:41:21,680 --> 00:41:27,100
So what have we been doing in our city with the positive COVID-19 and with the symptoms?

467
00:41:27,840 --> 00:41:33,560
Those residents, some of them may be there, we, what do we do with some service for those people?

468
00:41:33,820 --> 00:41:35,260
The city has a firm for them.

469
00:41:44,120 --> 00:41:49,300
I guess they probably have to contact the county, correct art.

470
00:41:50,200 --> 00:41:52,900
The county or senior center, if they contact the senior center,

471
00:41:53,020 --> 00:41:56,680
we will get them to direct it to the right people.

472
00:41:58,960 --> 00:42:02,420
You know, plus we cannot have the names and due to the heap of violation,

473
00:42:02,420 --> 00:42:05,080
and we cannot obtain their names and numbers.

474
00:42:05,760 --> 00:42:07,080
There is correct, sir.

475
00:42:07,420 --> 00:42:08,120
Thank you.

476
00:42:10,360 --> 00:42:10,820
Let's be clear.

477
00:42:14,940 --> 00:42:18,440
At this time, I'll call on Speaker Raleigh Bos Devon.

478
00:42:20,900 --> 00:42:22,080
If you could please, I need your microphone.

479
00:42:22,280 --> 00:42:22,700
Thank you.

480
00:42:23,220 --> 00:42:23,960
Can you hear me?

481
00:42:24,120 --> 00:42:24,680
Yes, we can.

482
00:42:25,000 --> 00:42:25,480
Thank you, Speaker.

483
00:42:26,100 --> 00:42:26,940
Good evening, Adam.

484
00:42:27,640 --> 00:42:34,980
So, I know we had the first corona COVID-19 case report

485
00:42:34,980 --> 00:42:37,400
that I think over a month ago.

486
00:42:37,400 --> 00:42:47,570
So, is CT following up and tracking whether they have recovered, for example?

487
00:42:48,510 --> 00:42:57,750
Even though there is a total 14-45 cases, probably 10 or 15 of them could have recovered

488
00:42:57,750 --> 00:43:02,810
if they were quarantined for two weeks, like that is what?

489
00:43:02,810 --> 00:43:11,210
Let us say, so it will be helpful if CT can. I am not asking for the affected people's name address for number.

490
00:43:11,710 --> 00:43:19,630
I am just asking that whether CT can provide an update saying that, okay, out of that 15 have recovered.

491
00:43:19,950 --> 00:43:24,850
So it is only 30 affected people in serytos, right? So something like that will be helpful.

492
00:43:24,850 --> 00:43:37,030
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.

493
00:43:39,030 --> 00:43:39,050
Thanks.

494
00:43:44,320 --> 00:43:44,680
Thanks, Speaker.

495
00:43:46,830 --> 00:43:47,170
Thank you, Mayor.

496
00:43:47,250 --> 00:43:49,230
Next speaker is Milk Cortez.

497
00:43:49,390 --> 00:43:51,710
If you could please unmute your microphone and begin your comments.

498
00:43:53,490 --> 00:43:55,070
I know Cortez, three of those residents.

499
00:43:55,070 --> 00:44:02,990
question about the decade that was tested positive for COVID-19. So we

500
00:44:02,990 --> 00:44:11,390
did hear what happened at the station. My question is why do residents have to

501
00:44:11,390 --> 00:44:20,130
find out through this meeting that one or the previous tested positive about two

502
00:44:20,130 --> 00:44:20,790
basically.

503
00:44:23,430 --> 00:44:31,830
Also, besides this sheriff's station, was the deputy on patrol, out on patrol

504
00:44:31,830 --> 00:44:38,330
that day, was he, he spent all day in a station. And he wasn't patrol, where did he patrol,

505
00:44:38,650 --> 00:44:46,830
where did he eat, and what are the people he coming contact with. So, it's, we probably need

506
00:44:46,830 --> 00:44:51,030
information sooner than later, and not through a CD council meeting to a question.

507
00:44:52,190 --> 00:44:59,330
I hope that maybe information from the CD is more up to the earlier sooner than later.

508
00:45:00,080 --> 00:45:16,080
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.

509
00:45:19,310 --> 00:45:23,090
Darrell or Captain, can answer that question. I thought we were a re-answer there but

510
00:45:23,090 --> 00:45:30,710
can we clarify that where he was working, how long and what did we do with the station?

511
00:45:33,800 --> 00:45:38,700
Captain Minden, can you address that I'm not sure what the Japanese fuel sign was?

512
00:45:41,480 --> 00:45:46,860
Yes, so I certainly can take answer that question. First of all, the Japanese, like I said,

513
00:45:47,080 --> 00:45:52,460
he was assigned to a patrol function, high visibility. In other words, he was working by himself

514
00:45:52,460 --> 00:45:58,200
for the most part I did ask the question whether or not did he come in contact with any

515
00:45:58,200 --> 00:46:06,340
resident and then the answer was no. He has limited contact with another field personnel and

516
00:46:06,340 --> 00:46:17,440
that's why not field deputy was also asked to be you know to be quarantine and got tested. That

517
00:46:17,440 --> 00:46:24,080
person also came back negative as well. So he had no contact with other citizen on the street.

518
00:46:24,720 --> 00:46:32,300
He did not enter into any other facility within the city. His involvement was limited

519
00:46:32,300 --> 00:46:40,460
at the station and for the abundance of caution we quarantine those whom he coming contact

520
00:46:40,460 --> 00:46:45,920
with. Like I said, those personnel came back negative and they all came back to work.

521
00:46:47,440 --> 00:46:48,020
Thank you.

522
00:46:48,160 --> 00:46:48,580
They're mayor Sloan.

523
00:46:48,740 --> 00:46:49,600
He just deliver levels.

524
00:46:49,980 --> 00:46:55,740
They also just emphasized as Captain Den had mentioned the deputy that was here temporarily

525
00:46:55,740 --> 00:46:57,380
in working majority in the field.

526
00:46:57,480 --> 00:47:02,880
It did have some close personal contact with deputies here in the station, you know, hand shakes

527
00:47:02,880 --> 00:47:05,420
and very close contact.

528
00:47:05,880 --> 00:47:13,300
As a result of that, about five or eight shares department employees were self-quarantine.

529
00:47:14,220 --> 00:47:16,880
They were all tested and they all came back negative.

530
00:47:16,880 --> 00:47:22,840
So even though he was here at the station had very close personal contact with several people who we actually knew

531
00:47:23,480 --> 00:47:28,200
They were all tested and all came back negative not one of them was impacted at all

532
00:47:28,200 --> 00:47:33,460
So we're not sure if the deputy was even contagious at that time or merely just

533
00:47:33,460 --> 00:47:37,200
Tested positive for the antibodies and then at some point yet in there

534
00:47:37,200 --> 00:47:41,100
So the good news is that we knew exactly who he contacted here at station

535
00:47:41,100 --> 00:47:44,280
They were all tested and every single one of them came back negative

536
00:47:44,280 --> 00:47:46,480
So there was no transmission on that day

537
00:47:48,350 --> 00:47:53,090
I dare all and thank you, Ms. Ring, for the report, I'm glad that, you know, what other

538
00:47:53,090 --> 00:47:56,950
this, I'll say, and we took care of that issue right away.

539
00:47:57,490 --> 00:47:58,730
Madam, I'm glad the next speaker.

540
00:47:59,370 --> 00:47:59,810
Thank you, Mayor.

541
00:47:59,910 --> 00:48:03,590
Our next speaker is Daisy Lagasca, if you could please unmute your microphone and begin your

542
00:48:03,590 --> 00:48:04,030
comments.

543
00:48:06,860 --> 00:48:07,000
Hi.

544
00:48:07,500 --> 00:48:08,380
Thank you.

545
00:48:09,580 --> 00:48:10,580
Good evening again.

546
00:48:11,080 --> 00:48:17,780
I think this one is speaking about the COVID, because last Saturday, last Saturday, tomorrow is

547
00:48:17,780 --> 00:48:20,000
Saturday again and it's the former smart kids.

548
00:48:20,000 --> 00:48:32,320
I have a friend and she's also a nurse and I think she was treated not well by some of the

549
00:48:32,320 --> 00:48:41,960
customers in the farmers market because she was trying to correct some of those people you

550
00:48:41,960 --> 00:48:48,260
know online that they're supposed to be they're supposed to be a social distancing but instead

551
00:48:48,260 --> 00:48:57,880
They made fun of her and I think they are also in gloves. I just want to make a comment about those gloves

552
00:49:00,000 --> 00:49:08,000
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

553
00:49:09,400 --> 00:49:10,040
fruits

554
00:49:10,560 --> 00:49:14,580
They're just, you know, it's just cross-contamination that's going on

555
00:49:14,580 --> 00:49:43,640
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,

556
00:49:43,640 --> 00:49:53,400
maybe a hand sanitizer or alcohol or whatever to clean their hands in every you know every

557
00:49:53,400 --> 00:50:02,160
stall of the you know stall or the stores for the people to use and then for the social

558
00:50:02,160 --> 00:50:10,160
distancing for those people who doesn't follow is there any sheriff

559
00:50:10,160 --> 00:50:20,200
a deputy to be there at least to observe, it's only like few hours anyway, so can we request

560
00:50:20,200 --> 00:50:28,640
somebody to be there to, you know, talk to the people or because if these people doesn't

561
00:50:28,640 --> 00:50:34,620
believe, you know, on social distancing, then, you know, they're just spreading whatever they have.

562
00:50:35,480 --> 00:50:38,580
And then I have another question.

563
00:50:41,600 --> 00:50:44,740
Is this the only public comments we have tonight?

564
00:50:45,560 --> 00:50:49,080
Well, on this COVID-19, we're only talking about item 9.

565
00:50:50,060 --> 00:50:51,260
Okay. Okay, Mayor.

566
00:50:51,260 --> 00:50:53,220
I think COVID-19 will be a comment on that.

567
00:50:53,340 --> 00:50:54,920
We're taking it for the comments.

568
00:50:55,180 --> 00:50:57,360
If there is other agenda item, you need to wait on it.

569
00:50:57,680 --> 00:50:58,500
Okay, thank you, Mayor.

570
00:50:58,940 --> 00:51:04,560
Anyway, regarding the city, the senior senior center.

571
00:51:04,560 --> 00:51:12,580
Um, it's during the way you guys will going to include, you know, the meals, the toilet paper,

572
00:51:13,120 --> 00:51:18,560
uh, gloves and uh, masks for the seniors too.

573
00:51:19,880 --> 00:51:20,940
Thank you very much.

574
00:51:21,860 --> 00:51:22,740
Thank you.

575
00:51:23,820 --> 00:51:24,920
Uh, can you answer the question?

576
00:51:25,140 --> 00:51:28,560
I think the Palmer's Market and the seniors with the blows and the masks.

577
00:51:31,010 --> 00:51:32,090
Uh, yes, Mr. Mayor.

578
00:51:32,090 --> 00:51:37,450
regarding the farmer's market, it is a contract group that's out there, but they still

579
00:51:37,450 --> 00:51:42,710
are responsible to us, and Sherry Titus is listing on one of the rooms here, so she works with

580
00:51:42,710 --> 00:51:48,050
that group, but she'll be contacting him, and she'll see what she can do to get some additional sanitizing,

581
00:51:48,590 --> 00:51:54,010
but they put it up, sanitizing areas a couple of weeks ago, and we'll check and see what they

582
00:51:54,010 --> 00:51:59,670
more are needed. As it relates to the gloves of masks this past week, at the Senior Center,

583
00:51:59,670 --> 00:52:06,630
We gave 300 masks and gloves to our residents and we gave them additional toilet paper each week.

584
00:52:06,930 --> 00:52:12,670
That's the past month, they received toilet paper and gloves every other week.

585
00:52:13,230 --> 00:52:14,930
So that's been taken care of.

586
00:52:15,530 --> 00:52:16,870
Thank you very much.

587
00:52:17,370 --> 00:52:18,650
It's but on next speaker.

588
00:52:19,630 --> 00:52:20,010
Thank you, Mayor.

589
00:52:20,210 --> 00:52:22,170
Next speaker is Anantana Ryan.

590
00:52:22,490 --> 00:52:25,650
If you could please unmute your microphone and begin your comments.

591
00:52:27,190 --> 00:52:32,880
What made me one of the mayor and council members, I just wanted to, you know,

592
00:52:33,190 --> 00:52:39,830
a lotchant to the point of the resident, Jason, Ligasca, on the almost market because

593
00:52:39,830 --> 00:52:47,950
I did see in the social media that the people who in the farmers market on last Saturday

594
00:52:47,950 --> 00:52:57,170
were not maintaining social distancing and the, there was issues with how well the

595
00:52:57,910 --> 00:53:01,630
COVID-19 precautions of being taken care in the foremost market.

596
00:53:02,210 --> 00:53:08,070
And the answer by the city manager that we have a contract with the third party,

597
00:53:08,810 --> 00:53:10,130
you know, they have to take care.

598
00:53:10,170 --> 00:53:16,850
We cannot, the point is we cannot shed the liability from us just because we are contracting

599
00:53:16,850 --> 00:53:19,470
these to somebody else.

600
00:53:20,670 --> 00:53:26,970
Being in a household where I have a first-line responder, I know the difficulties

601
00:53:26,970 --> 00:53:35,550
the medical professionals are undergoing because of this pandemic. They are in the PPE for eight

602
00:53:35,550 --> 00:53:40,470
hours together and then when they come home they have to quarantine themselves, clean them

603
00:53:40,470 --> 00:53:46,370
themselves up. That faces are covered with rashes, my wife's face is covered with rashes, putting

604
00:53:46,370 --> 00:53:54,180
the mask and putting the shield and she's not even in the frontline emergency wards dealing with

605
00:53:54,180 --> 00:54:02,840
on the second line of the patient care. And if that is being very difficult, we need to understand

606
00:54:03,680 --> 00:54:10,840
that we have a responsibility here as a city and as residents towards our health care professionals

607
00:54:11,380 --> 00:54:18,340
and the community of law. And if we are unable to maintain proper social distancing and the

608
00:54:18,340 --> 00:54:24,240
proper guidelines of the L.A. County, Dr. Ferrer on the L.A. County Public Health Department.

609
00:54:24,900 --> 00:54:32,820
She is, multiple times mentioned that any public places, you know, the people who are

610
00:54:32,820 --> 00:54:38,300
coming into those public spaces need to be queueed up on their, especially in a far, far

611
00:54:38,300 --> 00:54:38,980
much market.

612
00:54:39,560 --> 00:54:43,540
I don't know whether we are queen of people, we are stopping people in the entrance and

613
00:54:43,540 --> 00:54:48,320
then counting the number of people that can go to the stalls and I am.

614
00:54:48,320 --> 00:54:56,280
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.

615
00:54:56,640 --> 00:55:13,120
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.

616
00:55:13,120 --> 00:55:22,180
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,

617
00:55:23,440 --> 00:55:28,300
as, you know, first of all, I don't know why we even allowed the enormous market to happen.

618
00:55:29,060 --> 00:55:37,920
And if we are allowing, because small business needs to be supported, then do we have the proper measures to do the enormous market.

619
00:55:37,920 --> 00:55:41,820
And it looks like it is not the case, and I hope the council will wake up to the fact

620
00:55:41,820 --> 00:55:47,280
that it is not going well, and it will take us the city manager to take the appropriate

621
00:55:47,280 --> 00:55:52,780
actions regarding this far-ness market. That would really help the community at large and

622
00:55:52,780 --> 00:55:57,280
the health care professionals who are fighting this pandemic day-in and day-out. Thank you, Mayor,

623
00:55:57,420 --> 00:55:59,860
and thank you, council. Thank you.

624
00:56:01,880 --> 00:56:03,100
Madam Clerk, next speaker.

625
00:56:04,040 --> 00:56:08,240
Thank you, Mayor. There are no further speakers who have chosen to speak and you can declare

626
00:56:08,240 --> 00:56:10,680
the public comment period close.

627
00:56:10,860 --> 00:56:10,900
Okay.

628
00:56:11,680 --> 00:56:19,880
We will now close the public comments and go to like M9B.

629
00:56:20,880 --> 00:56:22,100
Mr. Mayor, remember to send a comment.

630
00:56:22,280 --> 00:56:27,300
The next item before we deny M9B is a discussion by staff that relates to Verizon wireless

631
00:56:27,300 --> 00:56:31,080
and a piece of least property that they are on in the city of Serritos.

632
00:56:31,500 --> 00:56:32,680
Mr. Port, we give them a question.

633
00:56:33,140 --> 00:56:34,760
And she and Tori will be happy to answer any questions.

634
00:56:36,020 --> 00:56:43,380
Thank you Mr. Guluchi, Chris and Agila, advance planning manager, good evening, honorable mayor and members of the city council.

635
00:56:44,180 --> 00:56:52,980
The item before you this evening is a proposal to extend to existing ground lease agreements between the city of Serritos and Verizon Wireless

636
00:56:52,980 --> 00:57:02,780
for use and lease of portions of city owned property located at Liberty Park and Serritos Park East for wireless telecommunication purposes.

637
00:57:04,800 --> 00:57:13,920
In August 1995, the City of Serritos, as property owner and groundless store, entered into

638
00:57:13,920 --> 00:57:21,780
two East Agreements with Los Angeles, SMSA Limited Partnership, doing business as Verizon Wireless.

639
00:57:22,620 --> 00:57:30,640
Under the East Agreements, Verizon Wireless was authorized to construct, maintain, and operate wireless telecommunications facilities

640
00:57:30,640 --> 00:57:35,700
at portions of the city on property located at Liberty Park and CPE.

641
00:57:38,290 --> 00:57:41,130
As such, after the execution of both places,

642
00:57:41,690 --> 00:57:46,230
Verizon Wireless Replace existing light standards at both parks,

643
00:57:46,430 --> 00:57:50,250
and they replace those with new monopoles and accessory buildings

644
00:57:50,250 --> 00:57:52,090
to support wireless equipment.

645
00:57:53,350 --> 00:57:57,230
Subsequent to completing the wireless facility improvements at both parks,

646
00:57:57,230 --> 00:58:01,810
rise in wireless sub-leases areas to American tower corporation,

647
00:58:02,750 --> 00:58:05,870
thereby transferring the maintenance and operation of these areas.

648
00:58:06,670 --> 00:58:12,310
Both ground leases were for 15 years with two five-year extension options,

649
00:58:12,710 --> 00:58:13,910
which have now been exhausted.

650
00:58:14,510 --> 00:58:18,690
As a result, the leases are now set to expire in July 2020.

651
00:58:22,950 --> 00:58:27,070
On the screen, on the left, the location map of the lease premises,

652
00:58:27,070 --> 00:58:30,370
The wireless facility located at Liberty Park.

653
00:58:31,050 --> 00:58:34,730
You can see the proximity of the facility to the entire park.

654
00:58:35,330 --> 00:58:40,230
On the right is the photo of the monopole, the park light standards, and wireless equipment

655
00:58:40,230 --> 00:58:41,390
storage facility.

656
00:58:44,950 --> 00:58:51,010
Next is a location map and a photo showing the least premises at Cerritos Park East.

657
00:58:51,670 --> 00:58:56,410
And this again is used for wireless telecommunication facility purposes under the existing

658
00:58:56,410 --> 00:58:57,190
ground lease.

659
00:58:59,940 --> 00:59:06,860
As I mentioned, the existing lease agreements are set to expire in July, and in anticipation

660
00:59:06,860 --> 00:59:14,020
of that expiration in February 2019, American tower corporation reached up to the city on

661
00:59:14,020 --> 00:59:19,960
behalf of rise in wireless to extend both brown leases for the continued use of these city

662
00:59:19,960 --> 00:59:23,060
on properties for wireless pellet communication purposes.

663
00:59:23,060 --> 00:59:30,060
In light of this request and due to pass city council direction to maintain revenue generating sources,

664
00:59:30,740 --> 00:59:35,580
over the past year, city staff and the city attorney's office have commenced negotiations

665
00:59:35,580 --> 00:59:42,220
for the potential extension of these ground leases, and that would be by way of an amendment to each ground lease.

666
00:59:44,890 --> 00:59:52,130
As a result of those negotiations, before you this evening, it's a proposal for the extension of both ground leases.

667
00:59:52,850 --> 00:59:58,090
Under the proposed terms of the ground lease extension, the ground leases would become effective

668
00:59:58,090 --> 00:59:59,810
beginning August 1, 2020.

669
01:00:00,400 --> 01:00:08,840
And would be for a initial period of 10 years, with two five-year options, potentially resulting in a 20-year lease.

670
01:00:09,580 --> 01:00:18,760
In addition, staff has negotiated a substantial rent increase with the rent for each facility being $3,000 per facility per month.

671
01:00:18,760 --> 01:00:25,720
Under the current ground leases, the city receives $1,900 per facility per month, and the

672
01:00:25,720 --> 01:00:31,760
negotiated $3,000 per month per facility under the proposed new terms is a 66% increase

673
01:00:31,760 --> 01:00:35,080
in ground leased rent over what the city currently receives.

674
01:00:36,260 --> 01:00:42,380
In addition, the $3,000 per facility per month rent would be increased annually based on CPI,

675
01:00:42,820 --> 01:00:46,180
provided that the increase does not exceed 5% annually.

676
01:00:46,180 --> 01:00:53,440
Lastly, if approved, within 30 days of executing the extensions, the city will receive

677
01:00:53,440 --> 01:01:01,300
a one-time payment from American Tower Corporation of $20,000 per facility, totally $40,000

678
01:01:01,300 --> 01:01:03,700
in one-time revenue for the city.

679
01:01:04,840 --> 01:01:09,640
It should be noted that American Tower Corporation has reviewed the proposed lease terms and

680
01:01:09,640 --> 01:01:15,020
has expressed its approval and interest in continuing its use of the lease premises under

681
01:01:15,020 --> 01:01:23,380
proposed lease terms. During negotiation, city staff conducted a survey of 54 Southern California

682
01:01:23,380 --> 01:01:30,100
cities to assess the monthly ground lease rent, other cities received for the same purpose.

683
01:01:31,340 --> 01:01:37,280
Of the surveyed cities, the lowest monthly rent assessed was $1,200 per facility per month,

684
01:01:37,540 --> 01:01:41,960
which includes the cities of Santa Ana, Laguna, Miguel, Irvine, and Diamond Bar.

685
01:01:41,960 --> 01:01:50,940
The highest monthly recess was $4,167 per facility per month, which was by the city of Pasadena.

686
01:01:52,040 --> 01:02:03,060
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.

687
01:02:03,680 --> 01:02:08,280
In addition, the average waste term for these purposes is between 20 and 30 years.

688
01:02:09,920 --> 01:02:15,180
By extending the lease agreements pursuant to the terms I discussed, the city would continue

689
01:02:15,180 --> 01:02:20,360
to provide residents with access to wireless service, while also receiving ground lease

690
01:02:20,360 --> 01:02:24,220
rent revenue totaling about $72,000 per year.

691
01:02:25,000 --> 01:02:29,820
In addition, the existing wireless telecommunication towers and facilities that both parks

692
01:02:29,820 --> 01:02:34,520
do not interfere with the usability or the accessibility of park resources.

693
01:02:35,560 --> 01:02:40,740
Therefore is for these reasons that it is recommended that the city council authorized the city to

694
01:02:40,740 --> 01:02:43,740
extend the existing lease agreements with Verizon Wireless.

695
01:02:44,640 --> 01:02:46,240
And that concludes my presentation.

696
01:02:46,580 --> 01:02:49,000
I am available to answer any questions the council may have.

697
01:02:49,440 --> 01:02:50,520
Thank you.

698
01:02:51,380 --> 01:02:52,420
Thank you, Christian.

699
01:02:55,510 --> 01:02:56,210
I have a question.

700
01:02:57,210 --> 01:03:04,310
I'm going to increase any kind of voltage or tower size or anything.

701
01:03:04,310 --> 01:03:07,570
Well, it is existing and they're not going to make an improvements.

702
01:03:10,150 --> 01:03:15,450
As part of the, thank you, Honorable Mayor, as part of the negotiations, there are currently

703
01:03:15,450 --> 01:03:17,650
no contemplated upgrades or improvements.

704
01:03:18,530 --> 01:03:24,070
Now, that's not to say that under the existing ground links or under the extension of

705
01:03:24,070 --> 01:03:28,690
a approved that they can't submit for upgrades or extensions, I know that as part of the

706
01:03:28,690 --> 01:03:34,450
5G network, several carriers are making upgrades, but at this time current day we do not

707
01:03:34,450 --> 01:03:39,550
have any contemplative proposals for upgrades or additional equipment at those facilities?

708
01:03:40,730 --> 01:03:41,450
Thank you.

709
01:03:42,570 --> 01:03:42,770
Okay.

710
01:03:42,890 --> 01:03:46,070
At this time, I will call for the questions from the council.

711
01:03:46,330 --> 01:03:48,610
I'll start with the council room and you.

712
01:03:48,790 --> 01:03:49,450
Do you have any questions?

713
01:03:50,290 --> 01:03:50,930
No.

714
01:03:51,290 --> 01:03:55,970
I think the rent is pretty good for us compared with other cities.

715
01:03:56,710 --> 01:03:57,550
They got paid.

716
01:03:58,030 --> 01:04:01,350
So I think $3,000 is good income.

717
01:04:01,350 --> 01:04:07,030
And I want to thank the employees to staff for your hard work.

718
01:04:07,470 --> 01:04:08,830
Thank you.

719
01:04:09,090 --> 01:04:11,090
Don't you remember your Kiyama, do you any questions?

720
01:04:15,480 --> 01:04:17,040
No, thank you.

721
01:04:17,440 --> 01:04:18,180
Mayor for Tim Wolf.

722
01:04:19,780 --> 01:04:20,940
No, thank you.

723
01:04:21,440 --> 01:04:22,440
OK, thank you very much.

724
01:04:22,700 --> 01:04:25,400
Guys, did a great job of $3,000 a month.

725
01:04:26,260 --> 01:04:28,180
It's a very good income per month.

726
01:04:28,460 --> 01:04:29,380
Because I have another location.

727
01:04:29,580 --> 01:04:31,080
I'm not getting anywhere close to it.

728
01:04:31,080 --> 01:04:37,780
So you guys are done like a consummate who says stabbed on a great job and it's a good

729
01:04:37,780 --> 01:04:40,820
additional income to our city appreciate your help and support.

730
01:04:41,680 --> 01:04:41,940
All right.

731
01:04:43,200 --> 01:04:47,580
If you don't have no more questions, I will open it up for public if anyone like to speak on this

732
01:04:47,580 --> 01:04:47,920
item.

733
01:04:48,020 --> 01:04:50,520
It doesn't clear to any speakers on this item.

734
01:04:51,840 --> 01:04:52,440
Thank you, Mr. Mayor.

735
01:04:52,560 --> 01:04:56,700
We have received no written communications on this item but we do have one speaker.

736
01:04:56,700 --> 01:05:00,500
Tubby Balma, if you could please unmute your microphone and begin your comments.

737
01:05:02,460 --> 01:05:02,840
Thank you.

738
01:05:02,880 --> 01:05:10,820
I have a question for staff by removing this contract, does that mean that the city will continue

739
01:05:10,820 --> 01:05:16,520
to be limited to frontier and charter as our internet choices?

740
01:05:21,600 --> 01:05:23,540
We're going to have the analogy about that.

741
01:05:25,760 --> 01:05:31,320
Both facilities are currently maintained and managed and operated by Verizon wireless.

742
01:05:31,320 --> 01:05:40,640
are not currently used by Spectrum and Frontier, so I'm not familiar whether or not those

743
01:05:40,640 --> 01:05:46,480
two providers have any equipment on those existing Verizon wireless towers that would be

744
01:05:46,480 --> 01:05:50,640
by way of an agreement between Frontier and Spectrum and Verizon.

745
01:05:55,820 --> 01:05:56,460
Thank you.

746
01:05:57,660 --> 01:06:00,540
I'm glad we have anyone else speaking on this item.

747
01:06:01,920 --> 01:06:07,160
At this time we have no more speakers, mayor, and you can declare the public comment period closed.

748
01:06:07,280 --> 01:06:10,660
At this time the public comment is closed.

749
01:06:12,000 --> 01:06:15,060
We'll need a portion to approve.

750
01:06:18,090 --> 01:06:19,710
I'll sign to that.

751
01:06:22,190 --> 01:06:23,410
They come to the roll call.

752
01:06:25,150 --> 01:06:26,370
Also members, who?

753
01:06:28,050 --> 01:06:28,490
Yoko Yamaha.

754
01:06:32,730 --> 01:06:32,970
Yoko Yamaha?

755
01:06:33,290 --> 01:06:33,850
Yoko Yamaha?

756
01:06:40,860 --> 01:06:42,040
Aye. Sorry about that.

757
01:06:44,660 --> 01:06:45,700
Mayor Pertembo?

758
01:06:45,980 --> 01:06:46,500
Aye.

759
01:06:47,000 --> 01:06:47,820
Mayor Salonki?

760
01:06:48,540 --> 01:06:48,740
Aye.

761
01:06:49,300 --> 01:06:50,400
Motion passes 40.

762
01:06:51,660 --> 01:06:51,960
OK.

763
01:06:51,980 --> 01:06:53,040
Next item on the agenda.

764
01:06:53,580 --> 01:06:54,740
The new and old business.

765
01:06:55,180 --> 01:06:56,040
The item on the 19.

766
01:06:56,340 --> 01:06:57,780
It says the manager can we get a report.

767
01:06:58,660 --> 01:06:58,880
Yes.

768
01:06:59,000 --> 01:07:00,000
Mr. Remembers is a council.

769
01:07:00,120 --> 01:07:04,720
The next item before you the evening is request by Jaguar Land Rover of Serritos,

770
01:07:05,080 --> 01:07:11,980
owned by the Pinsky Corporation, as it relates to a request of council for an extension on the payment of their lease.

771
01:07:11,980 --> 01:07:14,780
This report would give my Kristen and she and I would be having

772
01:07:14,780 --> 01:07:15,480
answer any questions.

773
01:07:17,380 --> 01:07:18,720
Thank you, Mr. Groochie.

774
01:07:19,020 --> 01:07:20,680
Kristen Aguila at Man's Planning Manager.

775
01:07:20,940 --> 01:07:23,580
Good evening again, Honorable Mayor and members of the City Council.

776
01:07:24,440 --> 01:07:29,720
As you are aware, the city, its businesses, its residents, and the community are facing

777
01:07:29,720 --> 01:07:35,760
very unprecedented and uncertain financial times as a result of the COVID-19 pandemic.

778
01:07:35,760 --> 01:07:41,960
The impact of this pandemic has devastated local businesses, including the auto industry.

779
01:07:42,820 --> 01:07:48,820
In March, the City of Serritos was approached by Penske Jaguar Land Rover Serritos, which currently

780
01:07:48,820 --> 01:07:54,980
occupies city owned and city-controlled property, at which time the tenant expressed financial

781
01:07:54,980 --> 01:08:01,540
concerns related to the impact that this virus has had on the dealership and on the tenant itself.

782
01:08:01,540 --> 01:08:08,080
During these negotiations, or excuse me, during these discussions, Pensky Jaguera Land Rover,

783
01:08:08,320 --> 01:08:13,700
the tenant requested rent assistance from the City of Serritos, as the City owns a dealership

784
01:08:13,700 --> 01:08:17,960
property, and serves as the landlord under the existing ground lease.

785
01:08:18,420 --> 01:08:23,500
For my report, I will discuss Pensky's request for rent or furl during this crisis.

786
01:08:26,580 --> 01:08:33,380
On the screen is, in just a moment, is an aerial photo of the subject property, as I mentioned

787
01:08:33,380 --> 01:08:41,820
the property is currently owned and controlled by the City of Sridos and is located at 1086-183

788
01:08:41,820 --> 01:08:47,320
street in the Sridos Auto Square at 183-3 just west of Sudemaker Road.

789
01:08:48,820 --> 01:08:54,260
The subject property was purchased by the City of Sridos in 2005 as part of a property

790
01:08:54,260 --> 01:08:56,280
exchange with Valley Christian schools.

791
01:08:56,860 --> 01:09:01,980
At that time, the property was vacant with no buildings nor any site improvements.

792
01:09:01,980 --> 01:09:08,240
Upon acquisition by the city, the city entered into a development agreement and the ground

793
01:09:08,240 --> 01:09:13,200
list with Townsend Automotive Group for the development of the property as an automobile

794
01:09:13,200 --> 01:09:20,240
dealership used. Then, in 2012, Townsend Automotive entered into a public agreement with

795
01:09:20,240 --> 01:09:31,540
L.R.J. Automotive doing business as Pensee Jaguar Land Rover Serritos for use of that

796
01:09:31,540 --> 01:09:37,780
agreement are long-term lease agreements for a period of 40 years and are set to expire

797
01:09:38,580 --> 01:09:43,060
in 1945, pending the tenets execution of a 10-year option.

798
01:09:43,960 --> 01:09:52,000
Under the existing ground lease, the city receives 23,367 dollars per month, totalling approximately

799
01:09:52,000 --> 01:09:57,880
$280,000 each year, and ground lease rent revenue for the city of Doritos.

800
01:09:57,880 --> 01:10:05,840
This amount is adjusted every five years based on CPI with the next adjustment scheduled for December of this year.

801
01:10:06,740 --> 01:10:14,140
Please note that the tenant, Pensky Jaguar Land Rover, has remitted all ground lease rent payments to the City of Sredos on time.

802
01:10:14,880 --> 01:10:22,500
It should also be noted that within the Sredos Auto Square, the City only owns two auto dealership properties,

803
01:10:22,500 --> 01:10:28,320
which are then groundless detenets of which one is this Pensky Jaguar Land Rover.

804
01:10:31,620 --> 01:10:39,280
As I mentioned earlier, in March, the sub-LSE are LRJ Automotive Pensky Jaguar Land Rover Serritos.

805
01:10:40,020 --> 01:10:46,860
Reach out to the city to express its concerns regarding the dire economic conditions presented by the COVID-19 crisis.

806
01:10:46,860 --> 01:10:53,540
And also to request the city's assistance as landlord and as property owner in deferring ground

807
01:10:53,540 --> 01:10:57,940
lease rent payments in order to help the dealership withstand the difficulties brought

808
01:10:57,940 --> 01:10:59,240
out by the pandemic.

809
01:11:00,120 --> 01:11:05,960
Specifically, since the outbreak outbreak of COVID-19 and the declarations of local emergency

810
01:11:05,960 --> 01:11:12,360
at a federal state and local level, vehicle inventory production and availability have significantly

811
01:11:12,360 --> 01:11:18,440
declined. The equal residual values are decreasing, and the equal sales that other dealerships

812
01:11:18,440 --> 01:11:24,900
have been significantly affected. At a local level, the Cerritos Jaguar Land Rover

813
01:11:24,900 --> 01:11:31,120
dealership has been significantly impacted by the COVID-19 pandemic, and also the stay-at-home

814
01:11:31,120 --> 01:11:36,700
orders issued by the State of California and the County of Los Angeles. While the dealership

815
01:11:36,700 --> 01:11:43,960
Other means open for service and parts, dealership staff as a whole has been reduced by 35%.

816
01:11:43,960 --> 01:11:50,160
The parts and service department is operating at reduced hours only operating now Monday through Friday.

817
01:11:51,020 --> 01:11:57,460
In addition, the sales department is now operating by phones and or by conducting online vehicle sales.

818
01:11:58,280 --> 01:12:03,720
This has significantly impacted the sale of both new and pre-owned vehicles at the dealership,

819
01:12:03,720 --> 01:12:10,700
and while the dealership typically sells around 20 vehicles each week, these sales have significantly reduced.

820
01:12:11,480 --> 01:12:19,740
I would also like to add that in October 2018, Pensky Jaguar Land Rover obtained City Council approval and building permits

821
01:12:19,740 --> 01:12:26,100
for a major interior and exterior remodel, including building upgrades and landscape refurbishment.

822
01:12:26,880 --> 01:12:32,500
While these improvements have been substantially completed, the project is still continuing regardless

823
01:12:32,500 --> 01:12:35,480
of the financial constraints posed by the pandemic.

824
01:12:38,670 --> 01:12:41,530
Upon receipt of the dealerships request for rent to thorough,

825
01:12:42,010 --> 01:12:44,350
city staff review the existing ground lease

826
01:12:44,350 --> 01:12:46,810
to assess the potential financial implications

827
01:12:46,810 --> 01:12:51,270
of providing a deferral of existing ground lease rent.

828
01:12:51,810 --> 01:12:53,950
And determined that the proposed rent to thorough

829
01:12:53,950 --> 01:12:58,110
was reasonable and consistent with the city's existing protections

830
01:12:58,110 --> 01:13:01,510
against residential and commercial evictions

831
01:13:01,510 --> 01:13:03,430
implemented during this pandemic.

832
01:13:03,430 --> 01:13:09,230
In light of the dire conditions created to the automotive industry, the City of Serritos

833
01:13:09,230 --> 01:13:11,010
negotiated the following terms.

834
01:13:11,690 --> 01:13:19,470
A three month rent referral for July, August, and September 2020, totaling $70,100 and $1.

835
01:13:20,450 --> 01:13:27,870
Payback of this rent referral will begin six months after the deferral, starting on April 1, 2021.

836
01:13:27,870 --> 01:13:34,170
And beginning on that date, Penske shall have 12 months to pay the city this deferred rent.

837
01:13:35,050 --> 01:13:42,990
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.

838
01:13:43,910 --> 01:13:51,050
If full payment is not received within this 12-month period, 15% interest will be added to the outstanding balance.

839
01:13:51,910 --> 01:14:00,850
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.

840
01:14:01,830 --> 01:14:11,210
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.

841
01:14:12,710 --> 01:14:17,750
As you are aware, the Streetos Auto Square is one of the city's largest revenue-generating

842
01:14:17,750 --> 01:14:18,610
land uses.

843
01:14:19,130 --> 01:14:23,910
The pandemic has had serious financial impacts to the Streetos Auto Square, including the

844
01:14:23,910 --> 01:14:25,390
Jaguar Land Rover dealership.

845
01:14:26,150 --> 01:14:30,730
As I mentioned, they have had to reduce their staff by 35 percent and have had to reduce

846
01:14:30,730 --> 01:14:36,970
their operating hours and resort to online sales only, resulting in a significant decline in

847
01:14:36,970 --> 01:14:37,590
auto sales.

848
01:14:37,590 --> 01:14:42,610
It is for these reasons that the request from Penske as tenant

849
01:14:42,610 --> 01:14:46,670
warrant special consideration by the City of Serritos as landlord

850
01:14:46,670 --> 01:14:49,990
and in effort to provide assistance during the pandemic.

851
01:14:51,090 --> 01:14:59,490
In addition, and as I mentioned, this request is consistent with the moratorium established by the City of Serritos for residential and commercial properties.

852
01:15:00,080 --> 01:15:15,260
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.

853
01:15:16,380 --> 01:15:21,720
This concludes my presentation. At this time, I will be happy to answer any questions the council may have. Thank you.

854
01:15:22,660 --> 01:15:29,940
Thank you Christine for the report. Is it time I will call questions from the Council, Council member, you, do you have questions?

855
01:15:30,680 --> 01:15:32,060
No, thank you.

856
01:15:32,160 --> 01:15:33,740
Council member Yokoyama, do you have questions?

857
01:15:37,180 --> 01:15:37,640
No.

858
01:15:38,540 --> 01:15:41,480
Council member, may for time or what do you have questions?

859
01:15:43,120 --> 01:15:44,460
No, this time, thank you.

860
01:15:44,820 --> 01:15:51,300
Okay, thank you Christine for the report and we will now open up these public comments on this item.

861
01:15:51,300 --> 01:15:54,780
I'm glad to be having a speaker on this item.

862
01:15:55,700 --> 01:15:56,260
Thank you, Mr. Mayor.

863
01:15:56,420 --> 01:15:58,460
We have received no written public comments.

864
01:15:58,660 --> 01:16:01,500
We have two speakers who would like to make comments.

865
01:16:01,560 --> 01:16:04,380
At this time, I'd like to call on speaker Mel Cortez.

866
01:16:04,560 --> 01:16:07,300
If you could please unmute your microphone and begin your comments.

867
01:16:08,940 --> 01:16:10,540
I mean, Mel Cortez, it's real resident.

868
01:16:12,420 --> 01:16:13,840
A couple of questions on this.

869
01:16:14,640 --> 01:16:19,020
Are the employees from this business thing paid?

870
01:16:19,020 --> 01:16:27,860
If they're going to delay their payment, it will be nice if they're playing their employees right now.

871
01:16:28,420 --> 01:16:33,020
Also, will they delay the income from this list?

872
01:16:33,680 --> 01:16:36,900
Will this affect any city jobs at their future?

873
01:16:37,400 --> 01:16:38,380
Because we won't get the money.

874
01:16:38,540 --> 01:16:40,180
We know that we're going to get them to next year.

875
01:16:40,620 --> 01:16:41,980
But we have less income right now.

876
01:16:42,300 --> 01:16:46,520
Will that affect any future job and employees?

877
01:16:48,100 --> 01:16:56,780
for the lack of the income so I just hope that that's not the case and I hope that

878
01:16:56,780 --> 01:16:59,740
they're actually paying their employees. Thank you.

879
01:17:02,940 --> 01:17:04,540
I'm glad to second speaker.

880
01:17:05,220 --> 01:17:08,500
Thank you. This time we will call on speaker Norma Williamson.

881
01:17:08,680 --> 01:17:11,120
If you could please unmute your microphone and begin your comments.

882
01:17:12,940 --> 01:17:17,200
Yes, good evening Mayor Salonki and City Council members. Can you hear me?

883
01:17:18,540 --> 01:17:43,200
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.

884
01:17:43,200 --> 01:17:48,940
I understand the need for compassion in these hard economic types.

885
01:17:49,720 --> 01:17:54,260
Nevertheless, in regards to corporate rent deferral agreements,

886
01:17:55,340 --> 01:17:59,900
I feel that there should be some sort of community reciprocity.

887
01:18:01,040 --> 01:18:07,900
The city helps the business community and the business community should help residents in return,

888
01:18:08,640 --> 01:18:11,560
especially during this historic pandemic.

889
01:18:12,720 --> 01:18:24,320
Corporations like to count their corporate citizenship status, like Sir Ralph, Frank, he's the CEO of Jaguar Land Rover.

890
01:18:25,220 --> 01:18:36,460
If you visit their company website, he is quoted as saying, Jaguar Land Rover improves lives in the communities we call home.

891
01:18:36,460 --> 01:18:46,680
Jaguar Land Rover has donated 388 vehicles to the Red Cross societies in the fight against

892
01:18:46,680 --> 01:18:48,080
COVID-19.

893
01:18:48,580 --> 01:18:55,340
In countries like Britain, Russia, Germany, the Netherlands, South Africa, Brazil, and

894
01:18:55,340 --> 01:18:55,800
more.

895
01:18:56,460 --> 01:19:03,160
But none have been donated or loaned to Serritos, let alone the United States.

896
01:19:03,160 --> 01:19:12,240
While it is commendable that Jaguar Land Rover has begun manufacturing and delivering

897
01:19:12,240 --> 01:19:22,620
5,000 medical vices a week for the National Health Services in the UK, none have been allocated

898
01:19:22,620 --> 01:19:27,340
for serides, area nursing facilities, or hospitals.

899
01:19:27,340 --> 01:19:37,880
So, before signing the rental deferral agreement for the Pensky Jack-Wireland Rovers Ridos, I feel

900
01:19:37,880 --> 01:19:40,920
that they should reciprocate with something.

901
01:19:41,540 --> 01:19:49,060
Perhaps offering free rides to area seniors to conduct their essential shopping or medical

902
01:19:49,060 --> 01:19:55,660
advisors for frontline health care, workers, or even something else.

903
01:19:56,220 --> 01:19:57,400
Thank you so much.

904
01:20:02,680 --> 01:20:04,080
I don't think I'll do any more speaker.

905
01:20:04,620 --> 01:20:05,300
Yes, thank you, Mayor.

906
01:20:05,580 --> 01:20:08,360
At this time, I will call on speaker Ananta Narayan.

907
01:20:08,440 --> 01:20:10,900
If you could please, I mean, your microphone and begin your comments.

908
01:20:12,700 --> 01:20:12,780
Thank you.

909
01:20:12,780 --> 01:20:15,020
What in the longer will Mayor and the council members?

910
01:20:16,200 --> 01:20:21,180
I think it's really commendable that you know, we support our local business because

911
01:20:21,180 --> 01:20:29,820
They are job providers in our status seeking and I really appreciate the council in giving this

912
01:20:29,820 --> 01:20:36,620
rent a deferment to the Jaguar Lairover and I think in the agenda items you have some

913
01:20:36,620 --> 01:20:42,020
more corporate businesses that is in our city going to get that deferred rent payment.

914
01:20:42,020 --> 01:20:51,300
However, one thing, the city management gave a good report on the background of the

915
01:20:51,300 --> 01:20:58,860
government, but one thing I do not see is what is the impact of this government on the current

916
01:20:58,860 --> 01:21:06,180
budget projections? How is it going to affect us in the current financial year? You know, Ryan,

917
01:21:06,180 --> 01:21:13,260
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

918
01:21:13,260 --> 01:21:21,400
deployment for the town center, and it's what is its impact on our cloud budget, because that's not being told at all.

919
01:21:21,820 --> 01:21:28,540
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.

920
01:21:28,840 --> 01:21:35,960
And what are all the mitigating strategies that the city has taken to do this and help the local

921
01:21:36,460 --> 01:21:46,360
I hope by the next agenda item explanation that data if they can attach that would be really helpful to know.

922
01:21:46,600 --> 01:21:49,560
What is the financial impact on this development on the city budget?

923
01:21:49,980 --> 01:21:51,920
Thank you Mayor, and thank you council members.

924
01:21:52,820 --> 01:21:53,070
Thank you.

925
01:21:54,060 --> 01:21:55,340
I'm sorry to be any more speakers.

926
01:21:57,660 --> 01:21:58,940
At this time Mr. Mayor, thank you.

927
01:21:58,980 --> 01:22:00,650
You can declare the public comment period closed.

928
01:22:01,960 --> 01:22:02,060
Okay.

929
01:22:02,500 --> 01:22:04,700
At the time I declare the public comment period is closed.

930
01:22:04,700 --> 01:22:06,640
It is no more questions from the Council.

931
01:22:06,960 --> 01:22:09,300
La lasca, motion on this item.

932
01:22:10,200 --> 01:22:11,780
Mayor, actually, I do have a question.

933
01:22:12,020 --> 01:22:12,100
Follow

934
01:22:14,340 --> 01:22:15,660
up.

935
01:22:15,660 --> 01:22:19,360
I have a question to staff or in Garts to more

936
01:22:19,360 --> 01:22:20,300
dorm in the evictions.

937
01:22:20,460 --> 01:22:22,480
I know that LA County is also initiated

938
01:22:22,480 --> 01:22:24,920
that we have to in Garts to evictions

939
01:22:24,920 --> 01:22:26,580
for commercials as well as residential.

940
01:22:27,400 --> 01:22:33,420
For that moreatorium, what's the rules for businesses

941
01:22:33,420 --> 01:22:43,020
in regards to we can't evict based on that and how long can that be made for

942
01:22:49,710 --> 01:22:51,550
Chris and you have a discussion?

943
01:22:54,400 --> 01:23:06,000
Yes, thank you. Under the executive order issued by City Manager Arcoji, the moratorium for residential and commercial evictions

944
01:23:06,000 --> 01:23:14,240
So what's designed to coincide with Los Angeles County's eviction moratorium, as well as the

945
01:23:14,240 --> 01:23:20,000
state of California, Los Angeles County's moratorium runs through May 31, 2020.

946
01:23:21,160 --> 01:23:25,040
And excuse me, don't have the executive order signed by City Manager, our glitching

947
01:23:25,040 --> 01:23:25,520
front of me.

948
01:23:26,060 --> 01:23:32,180
But I believe ours coincides with that to run through May 31, 2020, as part of that commercial

949
01:23:32,920 --> 01:23:39,980
those tenants for all businesses, commercial, as well as residential uses in the county, including

950
01:23:39,980 --> 01:23:45,740
the City of Sirito, similar to what's being proposed before you for the rent deferral, those

951
01:23:45,740 --> 01:23:52,380
tenants have 12 months to pay back the deferred rent in those scenarios under the eviction

952
01:23:52,380 --> 01:23:53,100
moratorium.

953
01:23:55,360 --> 01:23:58,460
Thank you. So I just want to just clarify that because more

954
01:23:58,460 --> 01:24:06,140
terms in place, commercial businesses, regardless if they reach out to us in partnership

955
01:24:06,140 --> 01:24:13,500
to work out a program, in regards to paying back the deferred grants.

956
01:24:13,780 --> 01:24:20,260
Even if they didn't reach out to us as a landlord, we cannot predict them during this

957
01:24:20,260 --> 01:24:20,760
moratorium.

958
01:24:21,600 --> 01:24:26,680
And based on that, we have to follow the guidelines of Elly County to the state as well

959
01:24:26,680 --> 01:24:31,860
our own, the same guidelines and we are following that guidelines, that's correct.

960
01:24:32,780 --> 01:24:39,280
That is correct. Under our more TORAM as well as the county and the state's eviction

961
01:24:39,280 --> 01:24:46,440
protections, the tenants would still have to reach out to the city as landlord or in the

962
01:24:46,440 --> 01:24:51,160
case of private businesses, a private tenant would have to reach out to the private landlord

963
01:24:51,160 --> 01:25:00,280
to request as well as show the inability to pay rent, and there's certain circumstances laid out,

964
01:25:00,340 --> 01:25:09,720
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,

965
01:25:09,920 --> 01:25:15,660
but the burden of proof in that scenario for the inability to pay rent does lie on the tenant.

966
01:25:15,660 --> 01:25:24,000
and so while pensky and then the next agenda report a different city tenant did reach out to the city

967
01:25:24,000 --> 01:25:29,860
it applies, you know, a lot of relief for commercial tenants as well. And I don't know if city attorney

968
01:25:29,860 --> 01:25:35,340
Mark Seris wants to elaborate any further but Mark, do you have anything to add to that?

969
01:25:37,750 --> 01:25:46,850
Thank you, Mark Seris. Not on anything more to add. It is in keeping with

970
01:25:46,850 --> 01:25:48,390
the city,

971
01:25:49,450 --> 01:25:54,870
moratorium and the L.A. County is a fiction moratorium. This is

972
01:25:54,870 --> 01:25:56,830
a agreement reflects that.

973
01:25:59,590 --> 01:26:00,630
Thank you. I just want to clarify.

974
01:26:07,200 --> 01:26:08,440
It takes a little more question again.

975
01:26:08,800 --> 01:26:11,320
I will allow Mayor for the motion to approve this item.

976
01:26:11,620 --> 01:26:13,100
So, Mayor, can I ask a question, please?

977
01:26:14,500 --> 01:26:14,720
Yes.

978
01:26:15,900 --> 01:26:18,460
Thank you.

979
01:26:20,000 --> 01:26:22,560
Kristen, thank you for the

980
01:26:22,560 --> 01:26:27,740
Thank you for this agenda report, regarding our tenant,

981
01:26:29,460 --> 01:26:31,360
hence each agwar land robber's cereals.

982
01:26:33,280 --> 01:26:39,940
So I just wanted to confirm and feel,

983
01:26:39,940 --> 01:26:44,200
I wanted to feel comfortable about helping out

984
01:26:44,200 --> 01:26:48,380
our cereals business, our cereals business,

985
01:26:48,460 --> 01:26:51,160
our cereals business tenant who is going through

986
01:26:51,160 --> 01:26:55,620
some tough times because of the COVID-19 pandemic, that's affecting us here in our city.

987
01:26:56,960 --> 01:26:58,800
And according to the agenda report,

988
01:27:01,700 --> 01:27:06,440
I wanted to just put it simply, your agenda report

989
01:27:06,440 --> 01:27:13,660
informed us that this business tenant, this cerido business, they have made all of their

990
01:27:13,660 --> 01:27:23,200
payments on time since 2005. That correct? That is correct. So they've been paying to rent

991
01:27:23,200 --> 01:27:28,960
on time for 15 years and now they're asking us for some help because of they specifically

992
01:27:28,960 --> 01:27:36,720
said because of the COVID-19 pandemic. Correct. That is correct yes. Okay and I think it's pretty

993
01:27:36,720 --> 01:27:39,340
Street Street forward about the effects on our budget,

994
01:27:42,120 --> 01:27:45,240
it's been specifically negotiated between

995
01:27:45,760 --> 01:27:52,140
this business and the city that they're asking for a rent deferral, not a forgiveness,

996
01:27:52,440 --> 01:27:58,040
they're asking for a rent deferral, 70, 101 dollars.

997
01:27:58,220 --> 01:27:59,220
That's the dollar amount.

998
01:27:59,780 --> 01:28:19,220
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

999
01:28:20,080 --> 01:28:26,320
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?

1000
01:28:26,320 --> 01:28:29,340
They're not asking for anything more than that in terms of dollar amount.

1001
01:28:29,440 --> 01:28:30,000
Is that correct?

1002
01:28:31,200 --> 01:28:32,040
That is correct.

1003
01:28:32,320 --> 01:28:36,300
It's the period for three consecutive months July, August and September in the amount

1004
01:28:36,300 --> 01:28:39,320
of 70,000, 101 dollars.

1005
01:28:40,280 --> 01:28:41,320
So that's the total...

1006
01:28:41,920 --> 01:28:42,460
Oh, excuse me.

1007
01:28:42,600 --> 01:28:42,880
Go ahead.

1008
01:28:43,400 --> 01:28:43,660
Okay.

1009
01:28:43,660 --> 01:28:45,560
Thank you, Kristen for confirming that.

1010
01:28:47,340 --> 01:28:55,500
So, you know, you clearly clearly putting that in you and Tory and art clearly putting

1011
01:28:55,500 --> 01:29:01,240
that in this agenda report, what the terms are of this agreement, and you explained clearly

1012
01:29:01,240 --> 01:29:07,800
the payback terms, what I understand this means in terms of our budget during the city

1013
01:29:07,800 --> 01:29:14,820
is they're asking to defer rent that would normally have been. They're asking us to defer

1014
01:29:14,820 --> 01:29:22,520
rent that would be in our 2020, our 2020, 2021 fiscal year budget, correct?

1015
01:29:23,300 --> 01:29:30,520
Yes, that is correct. The deferral of the rent will affect the next fiscal year's budget 2021.

1016
01:29:31,500 --> 01:29:43,440
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.

1017
01:29:43,440 --> 01:29:58,840
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.

1018
01:29:58,840 --> 01:29:59,560
or

1019
01:30:00,000 --> 01:30:08,380
They are required to pay it fully pay it back, no later than the 2021-2021-2022 fiscal year.

1020
01:30:09,140 --> 01:30:22,940
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?

1021
01:30:24,300 --> 01:30:25,380
Yes, that is correct.

1022
01:30:26,360 --> 01:30:33,920
And we're talking about, again, 70,000, 1,000, 1,000 dollars, no other amounts are included

1023
01:30:33,920 --> 01:30:38,780
in the deferral, and no other amounts are included in the payback, except for the possibility

1024
01:30:38,780 --> 01:30:42,960
of a 15% interest payment if they don't pay us back on time.

1025
01:30:43,320 --> 01:30:43,760
Is that right?

1026
01:30:44,700 --> 01:30:45,520
That is correct.

1027
01:30:46,600 --> 01:30:46,820
Okay.

1028
01:30:46,820 --> 01:30:48,140
Thanks for confirming all that.

1029
01:30:48,400 --> 01:30:49,140
Wonderful report.

1030
01:30:49,200 --> 01:30:49,820
Very clear.

1031
01:30:50,020 --> 01:30:50,800
Thank you.

1032
01:30:54,020 --> 01:31:01,020
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

1033
01:31:05,480 --> 01:31:08,460
Okay, I'm sorry. I made two at a motion

1034
01:31:08,460 --> 01:31:09,400
Grace

1035
01:31:09,400 --> 01:31:10,840
Okay, motion

1036
01:31:10,840 --> 01:31:11,120
I

1037
01:31:11,740 --> 01:31:12,220
Outside

1038
01:31:13,040 --> 01:31:18,080
Okay, all right, we have motion in second madam clerk. Can you please call the roco?

1039
01:31:18,440 --> 01:31:20,200
Yes, thank you, Mayor. Can I have some member who?

1040
01:31:21,280 --> 01:31:21,480
I

1041
01:31:22,980 --> 01:31:23,900
Yo-kiyama?

1042
01:31:26,160 --> 01:31:26,500
Aye.

1043
01:31:27,800 --> 01:31:28,320
Vote?

1044
01:31:30,280 --> 01:31:30,740
Selonky?

1045
01:31:31,860 --> 01:31:32,020
Aye.

1046
01:31:32,520 --> 01:31:33,740
Motion passes 4-0.

1047
01:31:35,180 --> 01:31:35,860
Thank you.

1048
01:31:36,040 --> 01:31:38,180
What I know, next, I know we have

1049
01:31:38,180 --> 01:31:39,260
the new and all business.

1050
01:31:39,620 --> 01:31:42,160
I know 90 to any manager.

1051
01:31:42,360 --> 01:31:43,480
Remember the city council?

1052
01:31:43,620 --> 01:31:45,080
The next item before we is 90.

1053
01:31:45,620 --> 01:31:48,760
This is a request by the Sherrods and Sereto, so tell.

1054
01:31:49,160 --> 01:31:51,740
For the city, forgive, and forgive excuse me,

1055
01:31:51,740 --> 01:31:55,480
those phones some went and creases to the city.

1056
01:31:55,940 --> 01:31:59,260
This report will give my Chris and it's you and I am totally happy to answer any questions,

1057
01:32:00,760 --> 01:32:02,180
Thank you, Mr. Goochie.

1058
01:32:02,280 --> 01:32:05,540
Honorable Mayor and members of the City Council of Kristen Aguilette at Man's Planning

1059
01:32:05,540 --> 01:32:06,080
Manager.

1060
01:32:07,100 --> 01:32:11,660
As Mr. Goochie mentioned, this is similar to the previous request by Penske Jaguar

1061
01:32:11,660 --> 01:32:12,460
Land Rover.

1062
01:32:12,540 --> 01:32:15,140
It's just very, very slightly.

1063
01:32:16,100 --> 01:32:21,720
As discussed in the previous agenda item, the impacts of the COVID-19 pandemic on businesses

1064
01:32:21,720 --> 01:32:26,140
is unprecedented and has caused for challenging times for

1065
01:32:26,140 --> 01:32:27,520
three-to-space businesses.

1066
01:32:28,140 --> 01:32:29,960
This also includes the hotel industry.

1067
01:32:30,640 --> 01:32:33,060
As the council is aware, stay at home restrictions

1068
01:32:33,060 --> 01:32:37,220
and the COVID-19 crisis has drastically impacted the hotel

1069
01:32:37,220 --> 01:32:38,840
and travel business sector.

1070
01:32:39,420 --> 01:32:43,540
And the Sereto Sheridan hotel has been significantly affected.

1071
01:32:44,380 --> 01:32:47,200
In March, the city of Sereto was also approached by the

1072
01:32:47,200 --> 01:32:50,200
Sheridan Sereto Hotel, who is a current ground-less

1073
01:32:50,200 --> 01:32:55,920
in tenant under one of the city's ground lease agreements for city owned property located at

1074
01:32:55,920 --> 01:33:01,560
one two seven two five center court drives. When the hotel reached out to the city, the

1075
01:33:01,560 --> 01:33:07,000
expressed their financial concerns and requested assistance from the city as landlord for

1076
01:33:07,000 --> 01:33:12,900
a potential rent deferral. Like the previous request this request is not for a waiver or forgiveness

1077
01:33:12,900 --> 01:33:18,780
of rent, but rather for deferral of rent while the hotel tries to survive this pandemic.

1078
01:33:21,270 --> 01:33:26,190
On the screen is an aerial photo of the subject property.

1079
01:33:26,910 --> 01:33:29,810
The hotel is located within the Cerritos Town Center,

1080
01:33:30,050 --> 01:33:33,290
directly north of the Cerritos Center for the performing arts.

1081
01:33:35,640 --> 01:33:40,120
In 1989, the city entered into the ground lease and development agreement

1082
01:33:40,120 --> 01:33:43,880
for the construction of the hotel on the city on property.

1083
01:33:44,620 --> 01:33:50,620
Since the completion of the hotel and execution of the original ground lease in 1989,

1084
01:33:50,620 --> 01:33:56,760
There have been several assignments or transfers of that ground lease, including the most recent

1085
01:33:56,760 --> 01:33:58,480
which occurred in 2016.

1086
01:33:59,620 --> 01:34:06,360
In 2016, Crown Jewel of Pacifica acquired the property rights and interest in the ground

1087
01:34:06,360 --> 01:34:11,500
lease, thereby assuming all obligations of the ground lease, including the maintenance,

1088
01:34:11,780 --> 01:34:17,020
the management, and the operation of the hotel, and becoming the new tenant under the ground

1089
01:34:17,020 --> 01:34:17,340
lease.

1090
01:34:18,710 --> 01:34:34,730
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.

1091
01:34:34,730 --> 01:34:43,590
Under the existing ground lease, the city receives 33,645 dollars and 50 cents per quarter,

1092
01:34:44,170 --> 01:34:50,550
totaling approximately $135,000 each year and ground lease rent revenue for the city.

1093
01:34:51,190 --> 01:34:56,730
This amount is adjusted each year based on CPI and the next adjustment is in November of this year.

1094
01:34:57,730 --> 01:35:03,410
Please note that the Lieutenant Crown Jewel of Pacifica, Sheridan Serritos has remitted all

1095
01:35:03,410 --> 01:35:09,050
ground lease rent payments to the city of Serritos on time since acquisition of the property

1096
01:35:09,050 --> 01:35:10,270
rights in 2016.

1097
01:35:12,700 --> 01:35:18,360
As I mentioned earlier, in March, Crown Jewel Pacifica Sheridan Serritos hotel reached out

1098
01:35:18,360 --> 01:35:23,020
to the city to express its concerns regarding the dire economic conditions presented

1099
01:35:23,020 --> 01:35:29,400
by the crisis, and also to request the city's assistance as landlord and property owner in

1100
01:35:29,400 --> 01:35:34,360
deferring ground lease rent payments in order to help the hotel withstand the difficulties

1101
01:35:34,360 --> 01:35:39,980
brought about by the pandemic. According to studies conducted for the American hotel and

1102
01:35:39,980 --> 01:35:47,060
lodging association, as a result of the COVID-19 pandemic, nearly 4 million employees who work

1103
01:35:47,060 --> 01:35:57,620
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.

1104
01:35:58,480 --> 01:36:08,760
In addition, as of April 8, 2020, hotel occupancies throughout the United States are currently at or below 20% occupancy,

1105
01:36:08,760 --> 01:36:16,140
resulting in a projected revenue loss of greater than 50% for the hotel industry during the first half of 2020.

1106
01:36:16,740 --> 01:36:23,100
And also significant loss of transient occupancy tax to UT, revenue for local municipalities.

1107
01:36:25,120 --> 01:36:35,120
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.

1108
01:36:35,120 --> 01:36:43,140
The City of Serritos has been informed that approximately 70 percent of the hotel staff have either been laid off or furloughed.

1109
01:36:44,300 --> 01:36:50,320
Since the issuance of the stay-at-home orders daily hotel occupancy is at approximately 10 percent,

1110
01:36:51,000 --> 01:36:54,440
with the hotel losing more than 90 percent of its hotel revenue.

1111
01:36:55,360 --> 01:37:00,460
In addition, the hotel has closed the hotel's restaurant, bar, room service amenities,

1112
01:37:00,460 --> 01:37:07,500
and the in-hotel Starbucks through the end of May, resulting in a loss of 100% of its food

1113
01:37:07,500 --> 01:37:13,000
and beverage business. I'd also like to note that when Crown Jewel of Pacifica acquired

1114
01:37:13,000 --> 01:37:19,560
the ground lease in 2016, Crown Jewel of Pacifica was required to renovate the hotel at their

1115
01:37:19,560 --> 01:37:24,480
sole cost. As a hotel was not upgraded since construction in 1989,

1116
01:37:29,040 --> 01:37:30,660
see if the hotel's request

1117
01:37:30,660 --> 01:37:37,300
for rent deferral, city staff review the existing ground lease to assess the potential financial

1118
01:37:37,300 --> 01:37:41,400
implications of providing a deferral of existing ground lease rent.

1119
01:37:41,920 --> 01:37:47,180
And city staff has determined that the proposed rent deferral was reasonable and again

1120
01:37:47,180 --> 01:37:52,960
consistent with the city's existing policies on residential and commercial evictions resulting

1121
01:37:52,960 --> 01:37:54,400
from COVID-19.

1122
01:37:55,100 --> 01:37:59,780
In light of the dire conditions created by COVID to the hotel, the city of Doritos

1123
01:37:59,780 --> 01:38:03,820
negotiated proposed terms of a potential rent to throw with crown jewel.

1124
01:38:04,660 --> 01:38:09,960
The proposed referral for consideration includes a deferral of six months, or two quarters

1125
01:38:09,960 --> 01:38:19,620
rent, April 2020 through September 2020, totaling 67,291 dollars.

1126
01:38:20,400 --> 01:38:26,720
Payback of this deferral will begin six months after the deferral, starting on April 1, 2021,

1127
01:38:26,720 --> 01:38:33,000
and beginning on that day, Crown Jewel shall have 12 months to pay the status deferred rent.

1128
01:38:33,640 --> 01:38:40,080
As such, all deferred rent will be required to be paid back by April 1, 2022, with no interest.

1129
01:38:40,720 --> 01:38:47,100
If full payment is not received within this 12-month period, 15% interest will be added to that outstanding balance.

1130
01:38:47,900 --> 01:38:54,200
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.

1131
01:38:54,200 --> 01:39:06,280
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.

1132
01:39:08,740 --> 01:39:20,060
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.

1133
01:39:20,060 --> 01:39:26,940
In addition, hotel guests pay for nice city facilities, including the CCPA and the Serito Civic Center,

1134
01:39:27,640 --> 01:39:33,680
and provides significant sales tax revenue to the city, one hotel guest shop and dining in the city of Serito.

1135
01:39:34,600 --> 01:39:41,540
As mentioned, this pandemic has had serious financial impacts of the city, including a lot, excuse me, to the hotel,

1136
01:39:41,540 --> 01:39:50,740
including a loss of over 70% of staff, 90% of hotel occupancy and revenue, and 100% of its food and beverage sales.

1137
01:39:51,520 --> 01:39:56,300
Thereby, significantly hindering the hotels ability to even remain in business.

1138
01:39:57,040 --> 01:40:03,920
It is for these reasons that the request from crown jewel of Pacifica as tenant to defer rent payments for six months,

1139
01:40:03,920 --> 01:40:11,220
Warren's this consideration by the City of Serritos as landlord, and effort to provide this assistance during the pandemic.

1140
01:40:12,120 --> 01:40:20,280
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,

1141
01:40:20,880 --> 01:40:24,560
by way of a rent deferral agreement, pursuant to the terms I've discussed.

1142
01:40:25,400 --> 01:40:31,100
This concludes my presentation. I'll be happy to answer any questions the council may have. Thank you.

1143
01:40:31,100 --> 01:40:38,520
Thank you Christine for the report. I will have come solid there any questions. Council member here. We are quick.

1144
01:40:39,100 --> 01:40:40,020
No, thank you.

1145
01:40:40,020 --> 01:40:40,800
No, thank you, member Yokoyama.

1146
01:40:42,300 --> 01:40:44,100
Yes. Thank you.

1147
01:40:45,380 --> 01:40:46,800
I just wanted to please.

1148
01:40:46,920 --> 01:40:59,650
I just wanted to please disclose that on April 6th, 2020.

1149
01:41:01,070 --> 01:41:13,290
I spoke on the phone with the general manager of the Sheraton Sredo Sotel, Kent Galante.

1150
01:41:15,870 --> 01:41:27,030
On April 6, 2020, I called him up because I wanted, because I asked to discuss with him

1151
01:41:27,030 --> 01:41:40,170
the possibility of the Sheraton Serritos providing lodging for first responders in our

1152
01:41:40,170 --> 01:41:43,950
area for free or at discounted rates.

1153
01:41:46,740 --> 01:41:55,360
That was that was the substance of my phone call

1154
01:41:55,360 --> 01:42:04,440
with General Manager Kent Galante, solely about whether the Sheraton Serritos, which

1155
01:42:04,440 --> 01:42:13,600
consider providing housing to our first responders at free or discounted rates who

1156
01:42:13,600 --> 01:42:22,500
felt the need because of the COVID-19 pandemic that they could not stay at home with their families.

1157
01:42:23,160 --> 01:42:29,340
I just wanted this close that I had that one conversation with Ken Thalante earlier this month.

1158
01:42:29,800 --> 01:42:30,500
Thank you.

1159
01:42:32,020 --> 01:42:33,880
Mayor Brotem, what do you have any questions?

1160
01:42:35,020 --> 01:42:35,460
No, this time.

1161
01:42:35,720 --> 01:42:36,240
Thank you.

1162
01:42:36,500 --> 01:42:37,180
Thank you.

1163
01:42:37,660 --> 01:42:40,140
We will now open the public comments on this item.

1164
01:42:40,140 --> 01:42:43,620
Madam Citigua, do we have any speakers on this items?

1165
01:42:45,740 --> 01:42:46,240
Yes, Mr. Mayor.

1166
01:42:46,260 --> 01:42:51,420
We have several people who have raised their hands to speak at this time.

1167
01:42:51,420 --> 01:42:58,280
I will call on Speaker Raleigh by the Jevon if you could please unmute your microphone and begin your comments.

1168
01:42:59,100 --> 01:43:00,500
Can I hear me?

1169
01:43:00,600 --> 01:43:01,940
Yes, we can hear you, sir.

1170
01:43:03,120 --> 01:43:12,320
Yeah, so it is indeed a commendable that city is making accommodations for local businesses

1171
01:43:12,320 --> 01:43:16,180
when they are going through this difficult time.

1172
01:43:16,180 --> 01:43:31,860
My only request is, as you know, CT generates close to 8 million in ground when demanding every year.

1173
01:43:32,960 --> 01:43:45,140
So, this is the second business approaching CT requesting accommodation, which adds up to close to 140

1174
01:43:45,140 --> 01:43:54,220
thousand dollars adjustments out of what I hate million in revenue, right? So my question

1175
01:43:54,220 --> 01:44:05,820
is that things can probably get worse before everything gets back to normal. So when I

1176
01:44:05,820 --> 01:44:11,780
look at the town center, I see that we get around 5 million from town center businesses

1177
01:44:11,780 --> 01:44:21,980
along in rents. So what is the city's plan? If more and more businesses follow this, for example,

1178
01:44:22,100 --> 01:44:27,340
after today's meeting, if they come to know that, okay, city accommodated to businesses and

1179
01:44:27,340 --> 01:44:33,780
if everybody starts approaching and requesting for similar accommodation, what is the city's plan?

1180
01:44:33,780 --> 01:44:43,500
do we have any plans saying that this is how we will determine or are we saying that we will

1181
01:44:43,500 --> 01:44:48,580
extend the same favour to all businesses which could potentially

1182
01:44:51,940 --> 01:44:55,140
bring shortage of millions in

1183
01:44:56,320 --> 01:44:59,660
I'm not saying you won't get it, but what I'm saying is

1184
01:45:00,660 --> 01:45:20,160
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.

1185
01:45:21,260 --> 01:45:30,580
given the heat, we can take on other areas, so something to consider and be ready so

1186
01:45:30,580 --> 01:45:33,380
that we have some plan.

1187
01:45:35,720 --> 01:45:42,280
If more businesses upload city with similar questions, that's all I have.

1188
01:45:42,500 --> 01:45:43,060
Thank you.

1189
01:45:45,740 --> 01:45:47,140
Madam, do we have another next speaker?

1190
01:45:48,380 --> 01:45:48,980
Thank you speaker.

1191
01:45:49,700 --> 01:45:52,400
Our next speaker is normal Williamson.

1192
01:45:54,760 --> 01:46:01,960
Yes, good evening again Mayor Salonke. I'm on the same bring way as a council member of

1193
01:46:01,960 --> 01:46:10,800
Yokogama. According to the Marriott website which operates Sheraton hotels, they say

1194
01:46:10,800 --> 01:46:17,520
one of our core values is to always do the right thing and serve others. We feel it is our

1195
01:46:17,520 --> 01:46:23,220
responsibility to better the communities where we do business and to enrich the lives of those

1196
01:46:23,220 --> 01:46:30,600
around as well, this rings hollow since Sheraton has not offered any quarantine accommodations.

1197
01:46:31,800 --> 01:46:40,440
The 244 hotel rooms of the Sheraton Fairplex in Pomona on the LA County Fairgrounds

1198
01:46:40,440 --> 01:46:47,440
are now being used to quarantine patients with mild COVID-19 symptoms while keeping them

1199
01:46:47,440 --> 01:46:48,880
close to home.

1200
01:46:49,240 --> 01:46:54,960
LA County paid close to $300,000 for the use of these facilities.

1201
01:46:56,060 --> 01:47:05,120
According to LA County Supervisor Hilda Solise, in a March 2020 press release, the Sheraton

1202
01:47:05,120 --> 01:47:12,960
Fairplex Fairplex will be an option for San Gabriel Valley residents facing COVID-19

1203
01:47:12,960 --> 01:47:20,360
concerns. The mic question is, how about the other LA County areas and their front line

1204
01:47:20,360 --> 01:47:28,120
healthcare and first responders? Where do they go to quarantine in order to keep their family safe

1205
01:47:28,120 --> 01:47:36,940
and help stop community spread? I have a close family member in law enforcement who got exposed to

1206
01:47:36,940 --> 01:47:45,140
at 19 at work. All he could do was quarantine himself in his garage, but he still had to

1207
01:47:45,140 --> 01:47:53,420
share the bathroom with his four young children and his wife, who is immunocompromised. His quarantine

1208
01:47:53,420 --> 01:48:00,560
could have been more successful if he could have had access to a hotel room apart from his family

1209
01:48:00,560 --> 01:48:01,340
residents.

1210
01:48:04,900 --> 01:48:11,040
So once again I urge the council that before signing the rental deferral agreement

1211
01:48:11,040 --> 01:48:17,940
I'm sure you're all going to agree to it but before signing it could you please include some sort

1212
01:48:17,940 --> 01:48:19,120
of conditions.

1213
01:48:21,400 --> 01:48:28,380
So maybe they could offer some sort of service or a product to help our community

1214
01:48:28,380 --> 01:48:36,440
with this pandemic. This could be a condition for receiving a rental agreement. Perhaps at least

1215
01:48:36,440 --> 01:48:45,730
20% of their 23 hotel rooms for quarantine purposes to local first responders and health care workers.

1216
01:48:47,160 --> 01:48:52,380
As an aside, if this hotel facility is not used for quarantine sheltering,

1217
01:48:52,380 --> 01:49:03,480
How about the empty medical building at 1835-1 Bloomfield Avenue that used to be an F-H-P medical

1218
01:49:03,480 --> 01:49:10,180
center and is kitty corner to that city council and is kitty corner to the city hall?

1219
01:49:10,960 --> 01:49:15,360
As you know, Serritos, COVID numbers are increasing every day.

1220
01:49:15,360 --> 01:49:24,440
We are now at 46 cases, neighboring cities like Norwalk, they have 146 cases, and our

1221
01:49:24,440 --> 01:49:32,500
T-Shahast 12, so readers need some sort of quarantine shelter for its first responders.

1222
01:49:33,840 --> 01:49:39,720
Maybe the Sheraton could lend their beds and furniture to a newly converted sheltering facility

1223
01:49:39,720 --> 01:49:42,780
for first responders and health care workers.

1224
01:49:42,780 --> 01:49:50,020
I am positive that this is only the beginning of the floodgates opening on rental deferral

1225
01:49:50,020 --> 01:49:52,260
request that the city will receive.

1226
01:49:53,140 --> 01:49:59,240
The city's compassion towards commercial tenants should not be abused, and the business

1227
01:49:59,240 --> 01:50:07,120
community should voluntarily offer some sort of compensation that helps the local area fight

1228
01:50:07,120 --> 01:50:08,540
this deadly virus.

1229
01:50:08,540 --> 01:50:17,520
If not, the city has the responsibility to its residents to require some sort of in-kind

1230
01:50:17,520 --> 01:50:23,400
donation, in exchange for its rent, deferral agreements.

1231
01:50:24,800 --> 01:50:25,660
Thank you so much.

1232
01:50:28,490 --> 01:50:29,670
Thank you.

1233
01:50:33,600 --> 01:50:39,360
This is a private business and we are the land, I mean, there are ten and under the ground

1234
01:50:39,360 --> 01:50:48,680
leads is in a private business can city enforce them to rent to the or do they have to

1235
01:50:48,680 --> 01:50:52,040
decide themselves or we can tell them that they have to rent it to fuzz this wonder.

1236
01:50:53,240 --> 01:50:57,780
I'm not sure about the forcing Mr. Mayor but we certainly couldn't negotiate with him and

1237
01:50:57,780 --> 01:51:04,260
ask them to participate in a positive manner so that we can certainly do is release the forcing

1238
01:51:04,260 --> 01:51:06,400
I defer that to the city attorney.

1239
01:51:07,320 --> 01:51:11,120
Also, this is the, this is the media, but they don't own 2003 hotels.

1240
01:51:11,300 --> 01:51:14,220
This is the franchisee, which is about this one location, correct?

1241
01:51:15,060 --> 01:51:19,320
Yes sir, this gentleman was one of two hotels, a small one in this big one.

1242
01:51:20,000 --> 01:51:24,060
And this is his, and he's franchiseed through the shirts and corporation.

1243
01:51:25,100 --> 01:51:31,640
And I know the one on a fairground debt land is owned by Los Angeles County, correct?

1244
01:51:32,820 --> 01:51:36,060
Most of the fairgrounds are owned by the county, yes sir.

1245
01:51:36,440 --> 01:51:41,760
I think that seroton is, it's in the ground of the L.A. county, so it's easier for L.A.

1246
01:51:41,760 --> 01:51:44,680
to be a little serotonous in the landlord.

1247
01:51:45,700 --> 01:51:46,760
Could we do the same thing?

1248
01:51:46,860 --> 01:51:56,640
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...

1249
01:51:56,640 --> 01:52:00,440
We can certainly ask that question. Absolutely. It's the second part of the question,

1250
01:52:00,680 --> 01:52:04,020
demanding is the issue that needs the legal interpretation.

1251
01:52:04,820 --> 01:52:09,030
Mayor, if I can interject for a second. I'm sorry.

1252
01:52:10,110 --> 01:52:12,890
If I can comment roll, roll for it.

1253
01:52:13,190 --> 01:52:15,930
Let me let Mark answer the question first.

1254
01:52:17,710 --> 01:52:26,590
Thank you, Mayor is Mark Starris. The powers to use facilities such like the hotel rest with

1255
01:52:26,590 --> 01:52:29,010
county in the Lake County Department of Public Health.

1256
01:52:33,170 --> 01:52:37,210
So the county has a power we don't have much to live it is on it.

1257
01:52:37,850 --> 01:52:45,370
Well I don't know about the leverage but as far as just enforcing as a requirement those

1258
01:52:45,370 --> 01:52:50,390
powers are at this point with the county in the Lake County Department of Public Health.

1259
01:52:50,930 --> 01:52:58,710
Yeah and I know the state and the county is deciding which location can accept the

1260
01:52:58,710 --> 01:53:02,770
and who can accept the COVID-19 patient.

1261
01:53:03,670 --> 01:53:08,690
I'm also personal hotel years and I have signed up my three hotels with the county

1262
01:53:08,690 --> 01:53:16,070
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

1263
01:53:16,070 --> 01:53:21,430
for their first responder or the patients or for the one for the homeless.

1264
01:53:22,410 --> 01:53:27,690
So, you know, there are 15,000 hotels right now have signed up for this program.

1265
01:53:27,690 --> 01:53:29,330
And thank you very much, Monica.

1266
01:53:29,850 --> 01:53:30,890
Mr. Wood, do you have any questions?

1267
01:53:32,250 --> 01:53:33,790
I'm actually, I just want to share a comment.

1268
01:53:33,810 --> 01:53:36,450
I was going to wait until the comments were over,

1269
01:53:37,010 --> 01:53:43,950
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.

1270
01:53:44,450 --> 01:53:48,370
And he said that he would be interested in offering discounts to first responder.

1271
01:53:48,670 --> 01:53:52,870
I was going to wait to the end, but since that question did come out.

1272
01:53:52,870 --> 01:54:00,030
City Manager, Art Gullucci, I was going to share that with you today, and let you know that you should contact the owner.

1273
01:54:00,310 --> 01:54:06,710
I think the name is Andrew, and he's willing to have discussions and regards to you offering a discount to the first responders.

1274
01:54:07,670 --> 01:54:11,130
Mayor, pretend I do know the owner and I sure will get in contact with him.

1275
01:54:13,070 --> 01:54:16,050
Okay, Madam Clerk, do we have a more speaker on this item?

1276
01:54:17,570 --> 01:54:22,990
Yes, Honorable Mayor, we have one more speaker, Daisy Lagasca. If you could please unmute your microphone and begin your comments.

1277
01:54:25,710 --> 01:54:34,570
Hi good evening again. I am on nurse myself and I have, you know, I'm a single mom.

1278
01:54:35,570 --> 01:54:42,490
So, where I work, they usually get the hotel that's near the hospital.

1279
01:54:43,530 --> 01:54:53,910
But since, you know, I have three minor kids. I cannot stay there rather than I prefer to stay in Sharatan.

1280
01:54:53,910 --> 01:55:01,310
So, if you guys were going to do something about it, I would, you know, I'm sure there are more

1281
01:55:02,930 --> 01:55:11,870
frontlineers who live in Serritos who are, you know, appreciates for, if in case you guys can do something about us

1282
01:55:11,870 --> 01:55:19,270
and we will be going to stay in there rather than stay in our own house.

1283
01:55:19,910 --> 01:55:20,930
Thank you very much.

1284
01:55:22,400 --> 01:55:26,980
Thank you. Madam, do we have any more speakers?

1285
01:55:27,640 --> 01:55:32,580
At this time, Mr. Mayor, we have no more public speakers, and you can declare the public comment period closed.

1286
01:55:33,220 --> 01:55:35,700
Okay, this is a particularly public comment period closed.

1287
01:55:36,260 --> 01:55:39,440
Any councilor, there's a question, I'll start with a councilman, you.

1288
01:55:40,760 --> 01:55:41,680
Thank you, Mayor.

1289
01:55:41,680 --> 01:55:44,800
They may say something,

1290
01:55:47,400 --> 01:55:51,940
if you were in hotel business, you don't know how much your business

1291
01:55:51,940 --> 01:55:52,940
was heard.

1292
01:55:53,740 --> 01:55:58,120
Think about a 90% occupancy rate rate across.

1293
01:55:59,200 --> 01:56:04,600
You know, we are very lucky, I was sure the hotel still kept their door open.

1294
01:56:04,600 --> 01:56:12,180
It, you know, they probably posted the hotel, they, they would say more money, but imagine

1295
01:56:12,180 --> 01:56:20,480
if ceritos shirt and hotel closed, that would be bad in, you know, a thing for the city.

1296
01:56:21,540 --> 01:56:30,520
And every year, city got the room tax from shirt and hotel, I think, at least over $1 million.

1297
01:56:31,200 --> 01:56:40,320
right now they have the difficult time. Very, very difficult time. You cannot be there. I have a hotel. I have two hotels.

1298
01:56:42,730 --> 01:56:49,990
You cannot be there, but you know, just, just, you know, very, very bad.

1299
01:56:50,230 --> 01:56:56,950
We are thinking about losing a million dollars every month, think about that.

1300
01:56:57,750 --> 01:57:09,730
So, right now, they only asked for 67,000 before, you know, rent, and they tried everything

1301
01:57:09,730 --> 01:57:10,490
they could.

1302
01:57:10,810 --> 01:57:17,690
Actually, and these have to know, I refer them a hospital to call, so they may send their doctors

1303
01:57:17,690 --> 01:57:26,830
and nurses to stay in Sheridan Hotel, but the lady, the speaker, just making about

1304
01:57:26,830 --> 01:57:37,630
the city to have the hotel, these to our residents, I think you should talk to your

1305
01:57:41,930 --> 01:57:50,130
your, your administrator, your hospital people, they do have this program, so if you like

1306
01:57:50,130 --> 01:57:56,010
to stay in a hotel instead of going to home, so you may call that, I know many many

1307
01:57:56,010 --> 01:58:05,210
hospital. They do this. Yeah, I have a count. They send about 30 to 50 doctors and nurses

1308
01:58:05,210 --> 01:58:12,730
to my hotel every night. So, but not a CTT cannot help. So, but now, in this a difficult

1309
01:58:12,730 --> 01:58:19,990
time, I think we should, you know, approve this request from the Cerido Sheridan hotel and

1310
01:58:19,990 --> 01:58:29,010
Also, we try to find the ways to have them to have a more business, so they will be very, very appreciate.

1311
01:58:29,690 --> 01:58:30,870
Thank you.

1312
01:58:34,290 --> 01:58:35,010
Thank you.

1313
01:58:36,170 --> 01:58:37,110
Councilman Jopriyama.

1314
01:58:40,410 --> 01:58:40,470
Yes.

1315
01:58:40,710 --> 01:58:41,750
Thank you.

1316
01:58:43,620 --> 01:58:43,660
Yeah.

1317
01:58:43,700 --> 01:58:44,720
Thank you.

1318
01:58:45,840 --> 01:58:46,440
Councilman for.

1319
01:58:46,840 --> 01:58:47,680
Councilman for grace.

1320
01:58:48,780 --> 01:58:50,000
For putting.

1321
01:58:50,740 --> 01:58:54,140
Putting into perspective of how we have.

1322
01:58:54,140 --> 01:59:01,980
how we have this synergistic relationship with our one hotel in our city, the Sheraton Serritos,

1323
01:59:03,380 --> 01:59:24,120
and you know you put it into perspective because while they're asking us for a rent

1324
01:59:24,120 --> 01:59:36,280
is the fact that the Sheraton Serritos normally provides us over $1 million a year in

1325
01:59:36,280 --> 01:59:42,320
PLT revenue, transient occupancy tax revenue, over $1 million a year.

1326
01:59:43,200 --> 01:59:51,200
So every month we're getting over $100,000 in transient occupancy tax revenue over

1327
01:59:51,200 --> 01:59:57,860
6 months, we're getting over 600,000, we're getting about 600,000 and transient occupancy tax revenue.

1328
01:59:58,060 --> 01:59:59,920
That's why we need to...

1329
02:00:00,000 --> 02:00:28,430
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.

1330
02:00:28,430 --> 02:00:35,210
We, because of them, because of the Sheraton Serritos, we are getting over $1 million

1331
02:00:35,790 --> 02:00:38,910
around $1.2 million last I remember.

1332
02:00:39,590 --> 02:00:45,730
We're getting about $1.2 million every fiscal year from the Sheraton Serritos because

1333
02:00:45,730 --> 02:00:48,610
the transit occupancy tax revenue for our city.

1334
02:00:49,370 --> 02:00:57,270
So that's why I'm glad that they're communicating with us, we're working with them, we're

1335
02:00:57,270 --> 02:01:03,130
the weather to start together of this COVID-19 pandemic, our city and their hotel because

1336
02:01:03,130 --> 02:01:10,950
year after year in the future, we're hoping to continue to get that 1 million plus per

1337
02:01:12,030 --> 02:01:15,090
year in transit occupancy tax revenue.

1338
02:01:16,910 --> 02:01:27,230
So that's why I'm glad that we've reached an negotiated plan for rent deferral and payback.

1339
02:01:27,230 --> 02:01:28,690
with the shirts and cereals.

1340
02:01:29,570 --> 02:01:31,850
Thanks again, Council Member Grace, huh?

1341
02:01:32,210 --> 02:01:32,790
You're welcome.

1342
02:01:44,490 --> 02:01:45,090
I'm sorry, Mr. Mayor.

1343
02:01:45,190 --> 02:01:46,410
We were unable to hear your comments.

1344
02:01:49,710 --> 02:01:51,330
I'd met for a time while.

1345
02:01:52,270 --> 02:01:53,010
Yes, thank you.

1346
02:01:53,430 --> 02:01:54,710
I just wanted to comment.

1347
02:01:55,170 --> 02:01:59,950
That's the fact that people, I think, during this time,

1348
02:02:00,110 --> 02:02:03,250
everybody's heard and business is residents.

1349
02:02:04,010 --> 02:02:05,490
Everybody's feeling this crisis.

1350
02:02:06,350 --> 02:02:08,350
And one of the things that we have to understand is,

1351
02:02:08,350 --> 02:02:12,630
And we are a sales revenue generated city because we're in no low property tax.

1352
02:02:13,590 --> 02:02:15,830
So those revenue is very important, including that.

1353
02:02:16,310 --> 02:02:17,630
And we've been mentioned already.

1354
02:02:17,890 --> 02:02:18,850
I'm not going to repeat it.

1355
02:02:18,870 --> 02:02:23,090
But our hotel brings in the Fed tax for our city.

1356
02:02:23,430 --> 02:02:28,690
The problem is we are not good landlords and we don't support our local businesses.

1357
02:02:29,250 --> 02:02:32,550
These business may in fact go out of business and not return.

1358
02:02:32,950 --> 02:02:34,890
So it's important that we are good landlords.

1359
02:02:35,030 --> 02:02:38,050
And I hope that we are setting an example for all the landlords in the city.

1360
02:02:38,050 --> 02:02:43,930
to say that we got to make sure we help out the local businesses so that way they can

1361
02:02:43,930 --> 02:02:49,230
weather this storm and come out of it and be successful again so I want to

1362
02:02:49,230 --> 02:02:53,210
just commend the city staff for doing what they can to make sure our

1363
02:02:53,210 --> 02:02:58,430
businesses are intact after this but also I want to commend the owner of the

1364
02:02:58,430 --> 02:03:04,790
Shirt and Andrew Mr. Changs that he's willing to offer discounts to the

1365
02:03:04,790 --> 02:03:11,750
the first responders to help out the community and that goes a long way and I am ready to make a

1366
02:03:11,750 --> 02:03:16,430
motion to approve this because I think truly we need to help our local businesses and in fact

1367
02:03:16,430 --> 02:03:24,590
if any business that is affected with COVID-19 we have an obligation to help and I think

1368
02:03:24,590 --> 02:03:34,590
every landlord should and in a long run I think we'll all make it out together and we need to be a

1369
02:03:36,870 --> 02:03:43,610
I just want to clarify, I'm in hospitality business, but I do not own hospitality or hotel

1370
02:03:43,610 --> 02:03:48,270
in Los Angeles County, and I don't own anything in serators, and I know Councilman

1371
02:03:48,270 --> 02:03:52,890
Hue does not own hotel in serators, so both are not in serators.

1372
02:03:53,910 --> 02:04:01,690
So I know the hospitality has taken a toll, and we are working with counties and cities to

1373
02:04:01,690 --> 02:04:04,450
if we can help any patient,

1374
02:04:05,430 --> 02:04:07,290
the first responder, doctor, nurses,

1375
02:04:07,690 --> 02:04:10,390
and we're all doing everything we can to help them and support them.

1376
02:04:10,650 --> 02:04:15,630
But I think this is a good proposal that we're not waving it.

1377
02:04:15,630 --> 02:04:16,690
We're just differing it.

1378
02:04:17,770 --> 02:04:19,170
And I know there's already a motion.

1379
02:04:19,470 --> 02:04:23,410
I'd like to see if we get second on this, on the motion.

1380
02:04:24,230 --> 02:04:24,730
I second.

1381
02:04:25,530 --> 02:04:26,050
Okay, a motion.

1382
02:04:26,710 --> 02:04:28,390
Madam Clerk, can you call a roll call?

1383
02:04:29,210 --> 02:04:30,190
Thank you, Mr. Mayor.

1384
02:04:30,190 --> 02:04:31,830
Council members, who?

1385
02:04:33,510 --> 02:04:34,810
So long to you?

1386
02:04:35,150 --> 02:04:35,310
Aye.

1387
02:04:36,030 --> 02:04:36,270
Bo?

1388
02:04:37,730 --> 02:04:37,990
Aye.

1389
02:04:38,690 --> 02:04:39,110
Yoke Yama?

1390
02:04:41,170 --> 02:04:41,310
Aye.

1391
02:04:42,050 --> 02:04:43,230
Motion passes 40.

1392
02:04:45,210 --> 02:04:49,010
Next item we have is the under a new and old business item 9A.

1393
02:04:50,010 --> 02:04:52,210
The Ecology can we get report on this?

1394
02:04:54,410 --> 02:04:55,230
Yes, Mr. Mayor.

1395
02:04:55,490 --> 02:04:56,230
Madam members of the council.

1396
02:04:56,370 --> 02:05:00,670
The next item we have 10 items on the under 9A.

1397
02:05:00,670 --> 02:05:08,210
The first one you'll be hearing from this evening is a discussion by our city attorney's related to restricted and unrestricted funds

1398
02:05:08,210 --> 02:05:12,890
that the city has and how that you can use these funds. That's the council recall.

1399
02:05:13,470 --> 02:05:20,350
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

1400
02:05:20,350 --> 02:05:28,640
Then we'll move on to the other ones. Mark the mayor and city council. Mark stairs city attorney

1401
02:05:29,540 --> 02:05:38,060
the state of general fund reserves are found in the general fund. Plus, there are several other

1402
02:05:38,060 --> 02:05:45,020
funds identified for specific businesses that make up the general fund reserves. The question

1403
02:05:45,020 --> 02:05:51,080
of the way is whether those specified funds are legally restricted for identified specific

1404
02:05:51,080 --> 02:05:59,400
uses, or are they unrestricted, and the city council has the authority if they so choose

1405
02:05:59,400 --> 02:06:03,020
to use those dollars for general fund purposes?

1406
02:06:04,520 --> 02:06:13,720
The answer relies on whether a fund is legally restricted depends on the sources of the funds.

1407
02:06:13,720 --> 02:06:21,560
And any restrictions on those funds going into that specific use.

1408
02:06:22,200 --> 02:06:26,740
So at the April 20th meeting, special meeting, the council inquired about three of the funds.

1409
02:06:27,560 --> 02:06:33,760
The Art and Public Places Fund, the CCPA Fund, and the Equipment Replacement Fund.

1410
02:06:35,360 --> 02:06:42,360
The Art and Public Places Fund was created when the city created the Art and Public Places Program

1411
02:06:42,360 --> 02:06:50,600
And that requires that certain development projects, with building valuations of 250,000 or more,

1412
02:06:51,000 --> 02:07:03,160
must either pay 1% of that project valuation into the Art Fund, or donate artwork public artwork that's valued at that same amount.

1413
02:07:06,690 --> 02:07:11,910
The program that was adopted by City Council states that the fees in the art fund shall be used

1414
02:07:11,910 --> 02:07:18,930
solely for the acquisition, installation, improvement, maintenance, and insurance of art work.

1415
02:07:20,840 --> 02:07:26,300
So as the art fund was created for a specific purpose, and the municipal code provides

1416
02:07:26,300 --> 02:07:33,160
the scope of the use of those funds, the art and public places fund is a restricted use fund.

1417
02:07:35,220 --> 02:07:42,440
The Equipment Replacement Fund was created many years ago and it's basically a savings account identified

1418
02:07:42,440 --> 02:07:48,860
who were replacement of equipment over the years as they were out.

1419
02:07:50,300 --> 02:07:54,940
The money is in the Equipment Replacement Fund, who are transfers from the general fund.

1420
02:07:57,500 --> 02:08:02,700
As the Equipment Replacement Fund is completely funded with those transfers from the general fund,

1421
02:08:02,700 --> 02:08:12,760
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

1422
02:08:12,760 --> 02:08:14,640
fund purposes

1423
02:08:15,840 --> 02:08:18,050
And finally the CCPA fund

1424
02:08:18,660 --> 02:08:22,920
As you know that was created to support the CCPA and its expenses

1425
02:08:24,080 --> 02:08:31,500
That's the most complex of the funds because the source of the CCPA fund is

1426
02:08:31,500 --> 02:08:42,600
of donations that citizens and residents and others made directly to the CCPA for CCPA purposes

1427
02:08:43,740 --> 02:08:51,840
and it's made up of general fund transfers. Therefore the money and the CCPA fund that came from donations

1428
02:08:51,840 --> 02:08:59,920
things is restricted for CCPAU so however the funds that came from general fund transfers

1429
02:08:59,920 --> 02:09:07,740
and the CCPA fund may be used by the City Council for other general fund purposes.

1430
02:09:09,360 --> 02:09:14,980
Is my understanding that we do know what portion of the fund is from donations and what

1431
02:09:14,980 --> 02:09:20,000
from transfers. I do not have that specific information at this time.

1432
02:09:21,520 --> 02:09:23,040
And that concludes my staff report.

1433
02:09:25,660 --> 02:09:26,920
Thank you.

1434
02:09:27,200 --> 02:09:29,440
Next we have is a.

1435
02:09:29,980 --> 02:09:31,880
The question was we got into open go.

1436
02:09:43,840 --> 02:09:44,500
Thank you.

1437
02:09:44,880 --> 02:09:47,780
Good evening. Mayor and members of the city council.

1438
02:09:48,120 --> 02:09:50,080
Aaron Benjamin information technology manager.

1439
02:09:52,060 --> 02:09:54,220
The open gove.

1440
02:09:54,220 --> 02:09:55,680
The open gove software.

1441
02:09:55,680 --> 02:10:02,900
platform is an open data portal intended to enhance communication and transparency related to

1442
02:10:02,900 --> 02:10:09,400
the city's financial activity. In 2016 at the direction of the city council, the city acquired

1443
02:10:09,400 --> 02:10:15,760
the software to complement the financial review processes by providing an analytical reference tool.

1444
02:10:16,500 --> 02:10:22,140
The portal currently provides four financial reports with accompanying graphical visualizations

1445
02:10:22,140 --> 02:10:25,780
offering unfiltered activity data for complete transparency.

1446
02:10:29,240 --> 02:10:32,800
The software interactive analytical portal that provides users

1447
02:10:32,800 --> 02:10:35,320
the ability to apply and remove filters,

1448
02:10:35,700 --> 02:10:39,080
soar in export data according to the user's research preferences.

1449
02:10:40,200 --> 02:10:42,020
As with any data analytical tool,

1450
02:10:42,180 --> 02:10:45,580
the resulting information may require contextual reference

1451
02:10:45,580 --> 02:10:48,780
and interpretation that can present challenges.

1452
02:10:49,620 --> 02:10:55,920
For example, the combined financial program referred to as the budget includes the city's

1453
02:10:55,920 --> 02:10:57,580
approved capital improvement program.

1454
02:10:58,360 --> 02:11:02,860
Yet, those budget values are not represented within the open-go portal due to software

1455
02:11:02,860 --> 02:11:04,040
integration challenges.

1456
02:11:05,320 --> 02:11:10,960
Timing and delays of some revenue and expensive activity requires that adjustments be made to

1457
02:11:10,960 --> 02:11:17,000
recognize activity within the appropriate fiscal year, where the budget is a working print

1458
02:11:17,000 --> 02:11:23,860
document, the open-go portal is constantly updating as activity occurs, presenting data entry,

1459
02:11:24,260 --> 02:11:33,860
timing, and synchronization challenges. In reviewing the reports, the annual report provides

1460
02:11:33,860 --> 02:11:40,400
a comparison of prior fiscal year actual revenues and expenses to the current fiscal year adopted

1461
02:11:40,400 --> 02:11:47,160
amended and amended budgets. The default report configuration displays expenses, grouped by

1462
02:11:47,160 --> 02:11:51,220
Department, including all funds, departments, and expense types.

1463
02:11:52,700 --> 02:11:57,760
The current year report provides a comparison of fiscal year actual revenues and expenses

1464
02:11:57,760 --> 02:12:03,540
displayed as cumulative monthly totals compared to the fiscal year adopted and amended budgets.

1465
02:12:04,580 --> 02:12:09,840
The default report configuration displays expenses by expense type for the current fiscal year,

1466
02:12:10,020 --> 02:12:12,980
including all funds, departments, and expense types.

1467
02:12:15,060 --> 02:12:24,800
The check activity report provides line item invoice activity as represented by the register of demands provided to the city council each regular meeting.

1468
02:12:25,760 --> 02:12:36,560
The default report configuration includes a graphical representation of invoice transaction amount, grouped by city departments, filtered for accounts payable invoice activity.

1469
02:12:36,560 --> 02:12:43,920
The budget milestones report provides a comparison of fiscal year approved and amended budgets.

1470
02:12:44,840 --> 02:12:50,480
The default report configuration displays revenues versus expense activity for all departments,

1471
02:12:51,180 --> 02:13:09,040
revenues and expenses, excluding successor agency funds. During the April 20 2020 special meeting,

1472
02:13:09,040 --> 02:13:23,340
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.

1473
02:13:24,640 --> 02:13:33,880
The $5.2 million display deficit is a misrepresentation of expensive activity compared to the city council approve capital outlay budget.

1474
02:13:35,020 --> 02:13:40,320
The Mr. Presentation results from a challenge in integrating the city's project accounting

1475
02:13:40,320 --> 02:13:46,120
software module that maintains and controls capital project budgets. Therefore, to gain an

1476
02:13:46,120 --> 02:13:51,240
accurate picture it requires the addition of the city council approved capital improvement program

1477
02:13:51,240 --> 02:13:59,580
budget of $15.2 million dollars. In the displayed capital outlay budget of approximately $1.4 million.

1478
02:14:00,600 --> 02:14:08,000
The resulting calculation represents approximately $10 million of unspended capital equipment and projects.

1479
02:14:12,090 --> 02:14:17,490
Additionally, Mr. Slunky inquired about a $4 million current year deficit in the other expenses category.

1480
02:14:18,830 --> 02:14:26,390
The other expenses category consists of non-departmental expense activity, including interest, administrative, and depreciation expenses.

1481
02:14:26,390 --> 02:14:34,270
The representative deficit largely relates to successor agency expensive activity for general obligation bomb payments.

1482
02:14:34,950 --> 02:14:43,330
Staff has identified that this deficit can be adjusted by recognizing the city council approved budget for successor agency revenue and expensive activity.

1483
02:14:54,870 --> 02:14:59,770
The operations and maintenance category consists of expensive activity related to the management and operation.

1484
02:15:00,000 --> 02:15:04,500
Of community-funded programs and services, not completing labor expenses.

1485
02:15:06,060 --> 02:15:12,520
Examples of these activities include police and safety services, professional services, general liability insurance,

1486
02:15:13,300 --> 02:15:18,200
senior center recreation and library program expenses and supplies, and water well-pumping.

1487
02:15:19,200 --> 02:15:26,640
The represented $17.5 million of unspent funds is representative of the City Council approved

1488
02:15:26,640 --> 02:15:32,820
essential resources to support required and contractually obligated fiscal year expenses for

1489
02:15:32,820 --> 02:15:34,740
the previously mentioned operating activities.

1490
02:15:35,640 --> 02:15:41,500
One example of contractually obligated operating activities is the remaining two payments to

1491
02:15:41,500 --> 02:15:45,040
the Los Angeles Sheriff's Department for Police and Safety Services.

1492
02:15:47,760 --> 02:15:54,800
staff respectfully recommend that the City Council review and consider the information provided in this report and direct staff accordingly.

1493
02:15:55,520 --> 02:15:57,260
This concludes my presentation.

1494
02:15:58,040 --> 02:16:01,620
City Manager, Budget Manager, Finance Manager, and I are available for any questions.

1495
02:16:01,960 --> 02:16:02,560
Thank you.

1496
02:16:06,300 --> 02:16:06,500
Sorry.

1497
02:16:07,460 --> 02:16:08,280
Thank you very much.

1498
02:16:08,800 --> 02:16:09,480
I don't put the report.

1499
02:16:10,340 --> 02:16:13,960
I forgot to ask the Council for the first item.

1500
02:16:14,640 --> 02:16:19,280
If any of the council of the question on a general fund regarding the district data and

1501
02:16:19,280 --> 02:16:23,600
an unrestricted fund, I'll start with a council on a few, did you have a question on that item?

1502
02:16:24,360 --> 02:16:25,400
Well, not yet.

1503
02:16:25,860 --> 02:16:27,180
Thank you.

1504
02:16:28,380 --> 02:16:31,700
Council member Yokoyama?

1505
02:16:33,160 --> 02:16:33,960
No, thank you.

1506
02:16:35,100 --> 02:16:35,960
Council member Wolfe?

1507
02:16:37,180 --> 02:16:38,180
No, thank you.

1508
02:16:39,020 --> 02:16:46,380
And then the second item, just, and then just finish on these, uh, uh, uh, some of the questions

1509
02:16:46,380 --> 02:16:47,000
that I asked.

1510
02:16:47,120 --> 02:16:52,040
We got an open go transparency portal, uh, there's any of the council at the question on their

1511
02:16:52,040 --> 02:16:52,300
item.

1512
02:16:59,030 --> 02:16:59,470
Uh, all right.

1513
02:16:59,690 --> 02:17:05,570
We'll go next to the, uh, uh, uh, projected and loss of enterprise, uh, fund by Ryan.

1514
02:17:08,250 --> 02:17:08,650
Yes.

1515
02:17:08,850 --> 02:17:09,490
Uh, thank you, Mayor.

1516
02:17:09,550 --> 02:17:15,910
And members of the city council, uh, tonight I'm going to be recapping a little bit of a

1517
02:17:15,910 --> 02:17:27,110
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

1518
02:17:27,110 --> 02:17:37,130
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

1519
02:17:37,730 --> 02:17:43,810
We've been working to prepare a budget for the upcoming fiscal year that incorporates as much information and data as possible

1520
02:17:43,810 --> 02:17:49,870
to help us understand just what and how much of an impact the COVID-19 outbreak will have on the

1521
02:17:49,870 --> 02:17:54,650
city. As part of that effort, we're working to provide the council with as much up to the minute

1522
02:17:54,650 --> 02:18:01,610
information as we can to help you in considering the important policy decisions you're facing. Today I'd

1523
02:18:01,610 --> 02:18:06,070
like to provide you with a snapshot of the city's current fund balances as reflected in our

1524
02:18:06,070 --> 02:18:10,890
treasures report. I'll also provide you with a quick overview of some current sales tax

1525
02:18:10,890 --> 02:18:16,270
information and an update on the city's current expenses related to our COVID-19 response

1526
02:18:16,270 --> 02:18:20,870
as well as an overview of the lost revenue that we've incurred through the closure of

1527
02:18:20,870 --> 02:18:25,970
our facilities and the cancellation of various programs, events and classes, and then I'll

1528
02:18:25,970 --> 02:18:32,730
close with an overview of our enterprise fund activities. And so for that presentation, I'll

1529
02:18:32,730 --> 02:18:34,110
direct your attention to the screen.

1530
02:18:36,150 --> 02:18:38,750
This first slide is a copy of the Treasury Report

1531
02:18:38,750 --> 02:18:45,310
As of March 31st, you saw this on Monday, you do have an unrestricted general fund reserve

1532
02:18:45,310 --> 02:18:52,210
balance of $71 million, total reserves, including all restricted funds of about $110 million.

1533
02:18:53,050 --> 02:18:55,890
These balances are a snapshot in time.

1534
02:18:56,210 --> 02:19:01,050
It is likely that our fund balance will fluctuate between now and the end of the fiscal year.

1535
02:19:01,570 --> 02:19:06,950
And it's difficult for us to provide you with an absolute or a more refined figure because

1536
02:19:06,950 --> 02:19:12,370
We simply have not completed a lot of the work that needs to be done to finalize our fund balances

1537
02:19:12,930 --> 02:19:14,830
and complete the preparation of the budget.

1538
02:19:15,750 --> 02:19:21,310
However, we are confident that the city will end the fiscal year with a robust general fund

1539
02:19:21,310 --> 02:19:23,970
reserve and a neighborhood of $70 million.

1540
02:19:25,870 --> 02:19:30,730
The next slide discusses the impact that the closure of so many of the businesses in

1541
02:19:30,730 --> 02:19:34,170
This reto's has had on our projected sales tax performance.

1542
02:19:35,290 --> 02:19:39,370
They've been provided through the hard work of our sales tax consultant HDL.

1543
02:19:39,910 --> 02:19:45,410
This is quite obviously a very fluid situation and a lot is unknown about how long quarantine

1544
02:19:45,410 --> 02:19:47,650
requirements will remain in place.

1545
02:19:48,190 --> 02:19:54,410
Further, the long-term impact on consumer confidence in the amount of disposable income available

1546
02:19:54,410 --> 02:19:57,430
with the economy is very difficult to quantify.

1547
02:19:58,270 --> 02:20:03,570
Accordingly, the estimates provided by HDL should be considered with the very significant

1548
02:20:03,570 --> 02:20:08,390
caveat that these projections have been developed in the face of completely unprecedented

1549
02:20:08,390 --> 02:20:14,270
times and with very limited information on current sales tax performance due to very

1550
02:20:14,270 --> 02:20:20,450
rapid onset of the COVID-19 response and the virtual complete shutdown of all non-essential

1551
02:20:20,450 --> 02:20:22,370
businesses and commercial operations.

1552
02:20:22,370 --> 02:20:28,630
In other words, these projections are HDL's best estimates, and they're intended to provide

1553
02:20:28,630 --> 02:20:33,150
a starting point as we move forward, and it is very likely that these estimates will

1554
02:20:33,150 --> 02:20:37,230
continue to be adjusted and refine as more information is available.

1555
02:20:38,330 --> 02:20:43,010
With that, we are anticipating a reduction in sales tax for the current fiscal year of about

1556
02:20:43,010 --> 02:20:44,610
$3.3 million.

1557
02:20:45,610 --> 02:20:52,170
The original projection for the current fiscal year was $34 million, whereas the revised projection

1558
02:20:52,170 --> 02:20:59,650
that we received out of Monday was $30.7 million, and again, not represents a 9.8% reduction

1559
02:20:59,650 --> 02:21:02,570
in an overall reduction of $3.3 million.

1560
02:21:03,670 --> 02:21:09,570
As we move into the upcoming fiscal year, HDL provided us with an original projection of

1561
02:21:09,570 --> 02:21:14,970
$35 million back in January, and that's the number that we used as we began to build the

1562
02:21:14,970 --> 02:21:17,030
budget for the 2021 fiscal year.

1563
02:21:17,030 --> 02:21:25,130
That figure has been revised down to $30.6 million and that represents a 12.6 million

1564
02:21:25,130 --> 02:21:31,150
to our percent reduction over that original projection and an overall reduction of $4.4 million.

1565
02:21:32,490 --> 02:21:37,130
I'd like to note that staff continues to work very hard to address potential impacts

1566
02:21:37,130 --> 02:21:42,490
associated with COVID-19 and as we've worked through this process we've been able to identify

1567
02:21:42,490 --> 02:21:48,370
that reductions that have been made in both the mid-year budget for the current fiscal year and in

1568
02:21:48,370 --> 02:21:54,170
the upcoming 2021 budget will help to at least partially offset the sales tax revenue losses

1569
02:21:54,170 --> 02:21:59,230
that I've mentioned. Specific details on those reductions will be presented to the council

1570
02:21:59,230 --> 02:22:05,050
with the budget study session that's coming in the next month. On the last slide that I have

1571
02:22:05,050 --> 02:22:10,610
simply provides information on both the expenses, the city's incurred as part of our COVID-19

1572
02:22:10,610 --> 02:22:15,730
response as well as the revenues that have been lost as the result of program and event

1573
02:22:16,370 --> 02:22:16,910
cancellations.

1574
02:22:17,470 --> 02:22:23,590
As it relates to revenue, to date the city's lost about $1.2 million in revenue.

1575
02:22:24,130 --> 02:22:29,250
That would have otherwise been collected through ticket sales at the CCPA, facility rentals,

1576
02:22:29,490 --> 02:22:31,030
and program and class registration.

1577
02:22:32,130 --> 02:22:36,690
And on the expense side, as you can see, we've encouraged us to over $40,000 in expenses.

1578
02:22:36,690 --> 02:22:43,450
And that amount is obviously continued or anticipated to continue to increase in the weeks ahead.

1579
02:22:43,730 --> 02:22:58,670
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.

1580
02:22:59,650 --> 02:23:16,070
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.

1581
02:23:17,150 --> 02:23:23,430
Of these four utilities, the water, sewer and electric utility funds operate at an annual deficit.

1582
02:23:23,430 --> 02:23:32,710
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.

1583
02:23:34,110 --> 02:23:43,010
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.

1584
02:23:43,010 --> 02:23:54,450
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.

1585
02:23:55,710 --> 02:24:07,570
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.

1586
02:24:07,570 --> 02:24:13,910
For the water utility, the rating creases have succeeded in reducing the amount of general

1587
02:24:13,910 --> 02:24:17,410
fund subsidy that is required to offset our operating losses.

1588
02:24:18,270 --> 02:24:23,890
Over the current fiscal year, the estimated loan is approximately $380,000.

1589
02:24:24,690 --> 02:24:29,890
With the final rating crease which will be implemented this July, the water utility is expected

1590
02:24:29,890 --> 02:24:34,910
to generate sufficient revenue to offset its operating costs and potentially operate in

1591
02:24:34,910 --> 02:24:35,370
the black.

1592
02:24:35,370 --> 02:24:41,630
However, with the conclusion of the water rate increase implementation, it is expected that the water

1593
02:24:41,630 --> 02:24:47,290
utility will again soon require a general fund subsidy in future years as there are

1594
02:24:47,290 --> 02:24:52,910
no provisions to implement CPI adjustments in order to keep pace with the continued escalations

1595
02:24:52,910 --> 02:24:58,990
of cost moving forward. It's also important to note that to date, the rating increases have not

1596
02:24:58,990 --> 02:25:04,290
come close to providing funds for infrastructure maintenance or to begin repayment of the outstanding

1597
02:25:04,290 --> 02:25:10,410
loan balance of $10.2 million dollars. We are concerned that without a fee structure that

1598
02:25:10,410 --> 02:25:15,670
accurately reflects expected operating and maintenance expenses, the water utility will continue

1599
02:25:15,670 --> 02:25:21,850
to operate at a deficit and will continue to require a general fund subsidy to offset operation

1600
02:25:21,850 --> 02:25:34,270
and maintenance costs. Similar to the water utility, the city's suitor utility operates at an

1601
02:25:34,270 --> 02:25:46,310
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.

1602
02:25:46,930 --> 02:25:56,250
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.

1603
02:25:58,130 --> 02:26:04,210
Finally, our electric utility is unique and different from the water and sewer utilities and

1604
02:26:04,210 --> 02:26:08,290
that it's limited in its scope of service and in the manner of which its rate schedules

1605
02:26:08,290 --> 02:26:14,230
can figure. As the council is aware, the utility is limited to serving commercial and

1606
02:26:14,230 --> 02:26:19,970
public customers and is not currently permitted to serve residential customers. In addition,

1607
02:26:20,130 --> 02:26:25,630
the utility provides electricity to its customers out of 5% discount over the rate offered

1608
02:26:25,630 --> 02:26:27,630
by Southern California Edison.

1609
02:26:28,330 --> 02:26:33,890
Further, the operation of the utility and its fiscal performance is impacted by the long-term

1610
02:26:33,890 --> 02:26:37,190
debt that was incurred from the construction of the Magnolia Power Plant.

1611
02:26:37,810 --> 02:26:43,090
Despite these factors, from a strictly operational perspective, in terms of direct expenses,

1612
02:26:43,270 --> 02:26:49,750
versus revenue, over the past several years, the utility has operated at or near-break

1613
02:26:49,750 --> 02:26:58,590
However, when bond debt and capital depreciation expenses are considered, the utility does not generate enough revenue to offset all of its expenses.

1614
02:26:59,670 --> 02:27:06,150
For the 19-20 fiscal year, the utility is expected to operate at a deficit of about $1.7 million.

1615
02:27:07,170 --> 02:27:16,690
The deficit is offset roughly evenly through an $860,000 reimbursement that the city receives through the last and final rocks process,

1616
02:27:16,690 --> 02:27:20,410
and an 858,000 subsidy from the general fund.

1617
02:27:21,250 --> 02:27:23,610
The outstanding loaned at the electric utility

1618
02:27:23,610 --> 02:27:25,110
owes to the general fund,

1619
02:27:25,110 --> 02:27:27,850
totals approximately $24.9 million.

1620
02:27:28,690 --> 02:27:31,210
A staff continues to recruit additional customers

1621
02:27:31,210 --> 02:27:32,730
to the electric utility.

1622
02:27:33,330 --> 02:27:36,270
The operating deficit is expected to be reduced.

1623
02:27:36,910 --> 02:27:39,550
However, it remains unlikely under the current model

1624
02:27:39,550 --> 02:27:42,950
that the city will be able to generate sufficient revenue

1625
02:27:42,950 --> 02:27:45,570
through user enrollment to begin repayment

1626
02:27:45,570 --> 02:27:47,110
of the outstanding loan balance.

1627
02:27:48,010 --> 02:27:50,590
So that concludes my component of the presentation.

1628
02:27:51,410 --> 02:27:53,570
I'll pass it on to Patricia for an overview

1629
02:27:53,570 --> 02:27:55,390
of some human resources issues,

1630
02:27:55,490 --> 02:27:58,430
and we'll be happy to answer any questions at the end of the report.

1631
02:27:59,490 --> 02:28:00,190
Thank you.

1632
02:28:03,830 --> 02:28:04,270
Thank you.

1633
02:28:04,410 --> 02:28:06,230
I am for the report.

1634
02:28:07,610 --> 02:28:09,510
At this time, I will call for President

1635
02:28:09,510 --> 02:28:11,350
the Council of the question council room.

1636
02:28:11,810 --> 02:28:12,330
I'm a deal.

1637
02:28:12,350 --> 02:28:13,770
Do you have a question on this item?

1638
02:28:14,810 --> 02:28:15,330
Well,

1639
02:28:17,970 --> 02:28:20,510
not right now because I think we should

1640
02:28:22,410 --> 02:28:26,070
have this report prior to the meeting,

1641
02:28:28,250 --> 02:28:32,050
so far the report is very, very clear, so

1642
02:28:32,050 --> 02:28:42,890
but we probably will figure out how can we balance our 2020 to 2020 first budget.

1643
02:28:42,890 --> 02:28:54,550
So I think important thing is we have to make this session, which area we have to cut the expenses.

1644
02:28:55,230 --> 02:29:01,210
So that would be very detailed and that would take a lot of time.

1645
02:29:02,310 --> 02:29:03,970
So I appreciate this report.

1646
02:29:04,330 --> 02:29:05,130
It's very clear.

1647
02:29:05,910 --> 02:29:12,870
Yeah, I think the staff would make a very wonderful report for us.

1648
02:29:12,870 --> 02:29:24,470
to give us some information, so we will discuss when we have a budget meeting that will help

1649
02:29:24,470 --> 02:29:25,290
very helpful.

1650
02:29:26,210 --> 02:29:27,190
Thank you very much.

1651
02:29:28,130 --> 02:29:28,290
Thank you.

1652
02:29:28,550 --> 02:29:31,370
Councilmember Yokuyama, do you have a question on this?

1653
02:29:33,360 --> 02:29:34,120
Thank you.

1654
02:29:36,190 --> 02:29:45,510
Ryan, thank you for this clear report on the update on the status of the city enterprise funds.

1655
02:29:45,510 --> 02:29:55,830
And thank you again for giving us the perspective we need Orion on these enterprise funds.

1656
02:29:56,690 --> 02:29:58,730
Looking forward at the future of Serritos.

1657
02:30:01,070 --> 02:30:12,530
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.

1658
02:30:14,710 --> 02:30:24,390
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.

1659
02:30:24,390 --> 02:30:31,570
You said, it is standard practice within the public utility industry to charge customers

1660
02:30:31,570 --> 02:30:37,310
a rate that is sufficient to cover operating costs and provide for infrastructure maintenance.

1661
02:30:39,370 --> 02:30:44,830
And then you pointed out that in serritos, the opposite is true.

1662
02:30:47,070 --> 02:30:55,190
And the reality is we have to face this sooner than later if not now.

1663
02:30:56,570 --> 02:31:04,050
And again, thank you, Ryan, and thank you, Art, for making this presentation during tonight's

1664
02:31:04,050 --> 02:31:05,030
City Council meeting.

1665
02:31:05,390 --> 02:31:09,570
It's very illuminating and it's a very serious, serious issue.

1666
02:31:10,130 --> 02:31:10,710
Thank you, Ryan.

1667
02:31:12,390 --> 02:31:12,610
Welcome.

1668
02:31:13,630 --> 02:31:14,050
May I have a question?

1669
02:31:15,790 --> 02:31:16,450
Yes, thank you, Mayor.

1670
02:31:18,150 --> 02:31:22,570
I just had one question, actually, one question, I ask two questions or one question,

1671
02:31:22,670 --> 02:31:23,110
one comment.

1672
02:31:23,110 --> 02:31:26,870
But in regards to the enterprise fund sewer rates,

1673
02:31:27,590 --> 02:31:31,110
the city's been subsidizing the sewer rate for residents,

1674
02:31:31,770 --> 02:31:34,490
every since the redevelopment climate now,

1675
02:31:34,550 --> 02:31:35,590
we don't have that anymore.

1676
02:31:36,090 --> 02:31:42,030
And we just clarify how much if we were to consider not subsidizing

1677
02:31:42,030 --> 02:31:45,110
the sewer rate, how much on average if a resident

1678
02:31:45,110 --> 02:31:48,090
worked to pay for sewer rates, how much that would be a month.

1679
02:31:50,960 --> 02:31:53,440
Well, that's a difficult calculation

1680
02:31:53,440 --> 02:32:01,300
that I do not have at my fingertips, however, for a little bit of perspective, I can give you

1681
02:32:01,300 --> 02:32:07,400
a little bit of information here. Our current cost to operate the sewer utility is a little

1682
02:32:07,400 --> 02:32:14,300
over a million dollars for the current fiscal year. Our revenue projections, which are

1683
02:32:14,300 --> 02:32:21,700
based solely on the revenue that we derive from user fees and user rates, is just under $90,000.

1684
02:32:21,700 --> 02:32:32,160
So that leaves us with a $953,000 shortfall and if it's just some real basic map, essentially

1685
02:32:33,040 --> 02:32:40,120
user fees account for about 15% of the total revenue that's required to operate the sewer

1686
02:32:40,120 --> 02:32:48,220
utility and the city is subsidizing an additional 85% of the sewer utility operation.

1687
02:32:48,220 --> 02:32:53,820
And so it is expected, if we were to adjust user fees,

1688
02:32:54,260 --> 02:32:57,880
there would obviously be a significant potential correction

1689
02:32:57,880 --> 02:33:00,180
just to get us to a break-even point.

1690
02:33:03,020 --> 02:33:03,640
Thank you.

1691
02:33:04,600 --> 02:33:08,240
If we were to address this again in the future, hopefully we can figure that out.

1692
02:33:08,940 --> 02:33:14,700
So we can also make an educated decision to possibly move away from the subsidies

1693
02:33:14,700 --> 02:33:19,900
and bring us back to where we should be with those rates.

1694
02:33:20,360 --> 02:33:23,320
And then also, you had mentioned about the, you know,

1695
02:33:23,360 --> 02:33:25,360
like the regular technical and power plant.

1696
02:33:25,600 --> 02:33:30,320
Under the current model, we're projected not to make a profit.

1697
02:33:30,880 --> 02:33:33,520
However, if there's another agenda item that's coming forward in Garza,

1698
02:33:33,640 --> 02:33:39,740
Garza, we will be hopefully be conducted in a different model moving forward.

1699
02:33:40,040 --> 02:33:44,660
And so I just want to just clarify that and look forward to that agenda item.

1700
02:33:44,800 --> 02:33:45,540
Thank you.

1701
02:33:48,000 --> 02:33:49,160
Thank you, Mr. Walker.

1702
02:33:50,280 --> 02:33:51,120
Ryan, I had a question.

1703
02:33:51,120 --> 02:33:58,220
And do we have a survey of other cities, what other cities, charge in the water, sewer and

1704
02:33:58,220 --> 02:34:01,960
utility around that city or city?

1705
02:34:02,460 --> 02:34:08,160
Because I remember last year when we had a phone group, came out for a giving us the

1706
02:34:08,160 --> 02:34:16,660
audit report and one of the auditor said that we are the only city who are subsidizing

1707
02:34:16,660 --> 02:34:19,740
these enterprise businesses, where they mentioned particular

1708
02:34:19,740 --> 02:34:23,360
city was other wine, that they have a huge surplus on the

1709
02:34:23,360 --> 02:34:28,420
enterprise business. So do we have a survey of other cities,

1710
02:34:28,660 --> 02:34:31,020
what other cities charges on this, each items?

1711
02:34:32,480 --> 02:34:36,300
We don't have a current survey. There have been surveys that we've

1712
02:34:36,300 --> 02:34:41,840
completed in the recent past within the last five years and

1713
02:34:41,840 --> 02:34:50,160
And almost without exception, the city's user fees are among the lowest of any utility in

1714
02:34:50,160 --> 02:34:53,200
the region as it relates to both our water and sewer rates.

1715
02:34:54,200 --> 02:34:58,120
So we would need to go back out and do an updated survey just to kind of get caught up

1716
02:34:58,120 --> 02:35:03,420
on where we're at as it relates to fees in the region, but I do know that within the last

1717
02:35:03,420 --> 02:35:08,480
five years we've done some surveys that have shown that we are among the lowest in the

1718
02:35:08,480 --> 02:35:08,900
region.

1719
02:35:10,400 --> 02:35:14,960
So, great that we're charging the lower to our residents and you know it's benefiting

1720
02:35:14,960 --> 02:35:20,800
our community and our residents, but at some point we have to decide that we don't

1721
02:35:20,800 --> 02:35:25,420
want to make a profit but at least to offset the expense, whatever the income expenses

1722
02:35:25,420 --> 02:35:30,280
so we could not be subsidizing year after year, so I really like to see if the staff can

1723
02:35:30,280 --> 02:35:35,620
go out and survey and you know during the budget study we need like Mr. Warsaw we need

1724
02:35:35,620 --> 02:35:40,980
look at this and decide and you know get some education to our city councils to where we

1725
02:35:40,980 --> 02:35:42,660
are and where we got to go.

1726
02:35:46,300 --> 02:35:49,360
Mr. Mayor. Okay, we concurrence will certainly do that staff report.

1727
02:35:50,220 --> 02:35:56,360
Thank you, Art. Okay, there's no more question on this item. We'll move on to next item,

1728
02:35:56,580 --> 02:36:01,400
which is the for people by Patricia Salary and Employee Information.

1729
02:36:06,210 --> 02:36:09,090
It evening Mayor Salonke and members of the city council.

1730
02:36:09,090 --> 02:36:15,430
On Monday City Council directed staff to provide employment information as it relates to cost savings.

1731
02:36:16,290 --> 02:36:21,670
I would like to begin by directing your attention to the first slide regarding full-time vacancies.

1732
02:36:22,830 --> 02:36:26,810
As mentioned on Monday, currently there are ten full-time vacant positions.

1733
02:36:28,450 --> 02:36:31,670
There are seven vacant positions in the public work department.

1734
02:36:32,370 --> 02:36:35,670
The third column of the slide list of positions that are vacant.

1735
02:36:35,670 --> 02:36:44,270
These vacancies are in the following areas, parks, trees, city maintenance and water operations.

1736
02:36:45,190 --> 02:36:50,310
There is one vacancy in engineering and one vacancy in management information systems.

1737
02:36:51,070 --> 02:36:54,630
The Manager position at the Senior Center is also currently vacant.

1738
02:36:55,370 --> 02:37:04,030
There is an approximate salary savings of 256,714 dollars if these 10 full-time positions

1739
02:37:04,030 --> 02:37:09,050
stay vacant for the remainder of the fiscal year 2019-2020.

1740
02:37:09,670 --> 02:37:10,790
Next slide, please.

1741
02:37:13,250 --> 02:37:17,390
Inch and on Monday, currently there are 111 part-time vacancies.

1742
02:37:18,170 --> 02:37:23,610
As you can see from the slide, the areas with the most vacancies are recreation, with 66

1743
02:37:23,610 --> 02:37:30,190
Recreation later position vacancies and the theater with 20 vacancies ranging from security,

1744
02:37:30,870 --> 02:37:32,610
facility and stage assistance.

1745
02:37:33,650 --> 02:37:38,610
There is an intern and GIS clerk vacancy in the community development department.

1746
02:37:39,090 --> 02:37:41,970
There are a total of five vacancies and public works.

1747
02:37:42,730 --> 02:37:46,730
There are six senior center specialists vacancies at the senior center.

1748
02:37:48,150 --> 02:37:51,290
There are two crossing guard vacancies in community safety.

1749
02:37:51,290 --> 02:37:58,390
The finance and human resources divisions have one vacancy and there are eight positions

1750
02:37:58,390 --> 02:37:59,870
vacants at the library.

1751
02:38:00,950 --> 02:38:06,410
If these 111 part-time positions remain vacant for the remaining of the fiscal year,

1752
02:38:06,830 --> 02:38:12,890
there is an approximate salary savings of $1,253,485.

1753
02:38:15,490 --> 02:38:16,430
Next slide, please.

1754
02:38:19,630 --> 02:38:24,750
Currently, there are five retired and new attendants and one independent contractor working

1755
02:38:24,750 --> 02:38:30,590
for the city. There are two retired annuitance working in the administrative services department.

1756
02:38:31,490 --> 02:38:36,170
One retired annuitance works as needed to provide assistance with the payroll process

1757
02:38:36,170 --> 02:38:42,510
and workload. The other retired annuitance in administrative services is tasked with various

1758
02:38:42,510 --> 02:38:48,730
complex projects that require both financial and legal analysis. There is one retired

1759
02:38:48,730 --> 02:38:54,230
annuitance providing administrative support in the city manager's office. There are

1760
02:38:54,230 --> 02:39:01,570
to retard a nuitance that work on booking performances and theater productions at the CTPA.

1761
02:39:02,270 --> 02:39:08,330
And there is one independent contractor assisting with financial audits and consulting services.

1762
02:39:10,010 --> 02:39:16,950
As a reminder, CalPERS rules state that retard a nuitance are limited to 960 hours in a fiscal year

1763
02:39:16,950 --> 02:39:21,470
and that their salaries be reported on a bi-weekly basis to CalPERS.

1764
02:39:22,410 --> 02:39:23,890
Next slide please.

1765
02:39:27,760 --> 02:39:35,540
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.

1766
02:39:36,540 --> 02:39:44,440
The savings would be approximately 256,714 dollars. Next slide please.

1767
02:39:47,600 --> 02:39:55,160
All these savings for the remaining of the fiscal year would be approximately 1,253,495 dollars

1768
02:39:55,160 --> 02:40:02,020
if the 100 and 11 part-time positions stay vacant as a reminder in the past during challenging

1769
02:40:02,020 --> 02:40:08,780
economic times, our focus has been on unfilled positions for cost savings.

1770
02:40:10,000 --> 02:40:10,940
Next slide, please,

1771
02:40:13,770 --> 02:40:18,650
this slide list what a 5% salary reduction and a 2% salary reduction

1772
02:40:18,650 --> 02:40:24,390
would be based on a current payroll for a full year. Currently our city payroll for a year

1773
02:40:24,390 --> 02:40:32,910
is approximately $22 million. This excludes French benefit cost of a $22 million, $16 million

1774
02:40:32,910 --> 02:40:39,090
is for full-time payroll and approximately $6 million is a cost for part-time employee.

1775
02:40:40,250 --> 02:40:47,130
A 5% salary reduction for one year is approximately 800,000 for full-time employees and 300,000

1776
02:40:47,130 --> 02:40:48,470
part-time employees.

1777
02:40:51,310 --> 02:40:56,950
A 2% salary reduction for one year is approximately 320,000 for full-time

1778
02:40:56,950 --> 02:41:04,770
employees and 120,000 for part-time employees. Reformation with our classification tables

1779
02:41:04,770 --> 02:41:12,150
are employees are grouped as follows. We have appointed employees by City Council. They are

1780
02:41:12,150 --> 02:41:18,350
the city manager, the city clerk, and the city attorney, because these employees are appointed

1781
02:41:18,350 --> 02:41:20,810
they are considered to be at world employees.

1782
02:41:24,080 --> 02:41:27,960
Exgroup would be full-time management employees in confidential employees.

1783
02:41:29,280 --> 02:41:32,840
The next group would be full-time representative non-managerant employees,

1784
02:41:33,560 --> 02:41:36,620
and the final group would be represented part-time employees.

1785
02:41:38,160 --> 02:41:42,750
The group of employees becomes important when discussing furloughs and ors layoffs.

1786
02:41:42,750 --> 02:41:50,410
For both a furlough or layoffs process, the city must be ready to explain that there is a lack of funds.

1787
02:41:51,170 --> 02:41:57,010
This includes looking at an explaining overall expenditures, revenues, and reserves.

1788
02:41:57,870 --> 02:42:06,030
As a reminder, in the past, the city's totality of resources were analyzed by an independent panel during fact finding.

1789
02:42:06,790 --> 02:42:18,130
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.

1790
02:42:19,710 --> 02:42:32,170
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.

1791
02:42:33,230 --> 02:42:41,250
With a layoff process, you are separated in employees which will have an effect on both salary and benefits for the employee.

1792
02:42:43,170 --> 02:42:53,530
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.

1793
02:42:54,250 --> 02:42:59,670
It is a complicated process, but in general, the process includes the following.

1794
02:43:00,910 --> 02:43:07,210
A closed session meeting with City Council to discuss the process and the parameters and direction

1795
02:43:07,210 --> 02:43:08,010
for staff.

1796
02:43:09,870 --> 02:43:14,790
The city would be required to give the union notice explaining the city's intention to

1797
02:43:14,790 --> 02:43:17,030
furlough and or layoff employees.

1798
02:43:19,710 --> 02:43:25,530
He required to meet and confer with the union over the impact of the furlough and or layoff.

1799
02:43:26,910 --> 02:43:32,250
And the city would be required to give employees regardless of employee group they fall into

1800
02:43:32,250 --> 02:43:38,190
or if they are represented, that are going to be laid off or for a load at least a 30-day

1801
02:43:38,190 --> 02:43:39,250
advance notice.

1802
02:43:41,270 --> 02:43:47,250
In conclusion, if there is a change in compensation, CalPERS requires a publicly

1803
02:43:47,250 --> 02:43:54,430
approved classification plan for all employee groups. This concludes my presentation, Mr. Gallucci

1804
02:43:54,430 --> 02:43:57,670
I will be happy to answer any questions you may have.

1805
02:43:58,470 --> 02:43:59,870
Thank you, Patricia, for the report.

1806
02:44:00,710 --> 02:44:05,830
I had a question in your slide that retired and you turned by department area.

1807
02:44:07,130 --> 02:44:10,050
So, the tire or the still on the stop and what is the salary?

1808
02:44:10,670 --> 02:44:14,210
It doesn't so is the saving of the tire and you turn by department.

1809
02:44:17,090 --> 02:44:20,910
If they're part-time employees, they do not receive benefits.

1810
02:44:22,130 --> 02:44:24,970
I know, but what is that total salary? What would be saving?

1811
02:44:25,390 --> 02:44:25,470
What would be saving?

1812
02:44:25,790 --> 02:44:26,770
I know that's why.

1813
02:44:27,370 --> 02:44:28,070
It's on the slide.

1814
02:44:34,930 --> 02:44:38,290
So that's at $450,000 for all these examples?

1815
02:44:39,890 --> 02:44:40,890
Yes, sir.

1816
02:44:42,970 --> 02:44:47,430
And that's without, there's no benefits and there's no,

1817
02:44:47,430 --> 02:44:48,370
There are no benefits.

1818
02:44:52,110 --> 02:44:55,030
I will open up, thanks for the research.

1819
02:44:55,030 --> 02:44:59,390
I can't remember here if you have questions on these items.

1820
02:45:00,240 --> 02:45:14,920
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?

1821
02:45:16,020 --> 02:45:18,240
I'm proposing to carry it through the next year.

1822
02:45:18,240 --> 02:45:22,240
But they should not say we got current here in the council of Mayu.

1823
02:45:23,200 --> 02:45:31,600
Current year, right, 2020, until 2020, June 30th, we are saving 1.5 million dollars

1824
02:45:33,200 --> 02:45:41,700
for those employees, part-time and food time employees, laid off or fur off.

1825
02:45:42,040 --> 02:45:42,700
Is that correct?

1826
02:45:43,960 --> 02:45:47,740
Are we saving that money right now art 1.2 million?

1827
02:45:48,520 --> 02:45:55,520
1.2 million plus 250,000, so total 1.5 million until June of 30, this year.

1828
02:45:59,180 --> 02:46:07,560
256,000, 714 plus 1 million, 253,485.

1829
02:46:11,060 --> 02:46:12,540
If I may?

1830
02:46:12,700 --> 02:46:14,060
Yes, first you go to it.

1831
02:46:14,060 --> 02:46:28,980
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.

1832
02:46:29,660 --> 02:46:41,840
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.

1833
02:46:41,840 --> 02:46:50,400
We may vacate and continue the 30th for the remaining of the fiscal year, correct, co-year.

1834
02:46:50,900 --> 02:46:51,020
Okay.

1835
02:46:51,240 --> 02:46:52,220
Thank you.

1836
02:46:53,870 --> 02:46:54,070
Okay.

1837
02:46:54,770 --> 02:46:56,410
Councilmember Yokeyama?

1838
02:46:58,270 --> 02:46:58,290
Yes.

1839
02:46:58,290 --> 02:46:58,310
Yes.

1840
02:46:58,310 --> 02:46:59,030
Thank you.

1841
02:47:00,690 --> 02:47:02,330
That was a good question.

1842
02:47:03,110 --> 02:47:04,210
Councilmember Gray Sue.

1843
02:47:05,410 --> 02:47:11,870
I want to clarify that please, Patricia, and thank you for your report.

1844
02:47:11,870 --> 02:47:22,870
But these two dollar amounts that are labeled for the full-time vacancies by the

1845
02:47:22,870 --> 02:47:28,410
Department area and part-time vacancies by the Department area and for the full-time vacancies

1846
02:47:28,410 --> 02:47:37,590
it says salary saving fiscal year 2019-2020 and it's approximately 250,000 and then for the

1847
02:47:37,590 --> 02:47:44,830
Our time vacancies, it says salary savings fiscal year 2019, 2020, and that's approximately

1848
02:47:45,670 --> 02:47:52,030
1,250,000, so that's the one and a half million that council member Gray Sue was just

1849
02:47:52,030 --> 02:47:53,450
talking about.

1850
02:47:54,270 --> 02:47:59,110
And we're calling it on these two slides of salary savings, where these dollar amounts

1851
02:47:59,110 --> 02:48:12,670
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.

1852
02:48:13,970 --> 02:48:15,150
In June of 2019.

1853
02:48:17,150 --> 02:48:17,830
I

1854
02:48:20,320 --> 02:48:23,020
believe they were included in the budget.

1855
02:48:24,020 --> 02:48:28,380
I would have to refer your question to the budget manager, Jess.

1856
02:48:28,380 --> 02:48:29,240
Yes.

1857
02:48:29,540 --> 02:48:30,560
Just pick that up.

1858
02:48:31,480 --> 02:48:32,000
Good evening.

1859
02:48:32,860 --> 02:48:33,640
Yes, sir.

1860
02:48:33,840 --> 02:48:35,800
Councilmember Yofiama, you are correct.

1861
02:48:36,260 --> 02:48:41,900
Those positions were approved in the current fiscal year 2019-2020 budget.

1862
02:48:42,660 --> 02:48:47,800
They are in the authorized positions list and they were budgeted by a count line item

1863
02:48:47,800 --> 02:48:51,760
and the personnel section for each division that they are assigned to.

1864
02:48:53,640 --> 02:48:54,180
Okay, great.

1865
02:48:54,360 --> 02:48:59,620
So this update that Patricia has given us today in addition to your

1866
02:48:59,620 --> 02:49:00,740
information,

1867
02:49:03,480 --> 02:49:11,900
Patricia has estimated for us in her report that for these full-time vacancies and

1868
02:49:11,900 --> 02:49:17,560
part-time vacancies, we are looking at an actual number at year-end, at fiscal year-end,

1869
02:49:17,880 --> 02:49:24,680
that's going to be approximately $1.5 million less than the amount that we approved in

1870
02:49:24,680 --> 02:49:29,480
budget on June in June 2019. Right, Jeff?

1871
02:49:30,140 --> 02:49:31,140
That is correct, sir.

1872
02:49:31,840 --> 02:49:34,480
Okay. Thank you for clarifying that. Patricia and Jeff.

1873
02:49:35,200 --> 02:49:35,820
Thank you.

1874
02:49:38,020 --> 02:49:41,080
Okay. Council member Medbroke Timberwell.

1875
02:49:42,500 --> 02:49:42,900
Thank you, Mayor.

1876
02:49:43,800 --> 02:49:47,260
I actually, I want to focus on the same area at the same

1877
02:49:47,260 --> 02:49:50,720
talk in regards to the savings of $0.1920.

1878
02:49:50,860 --> 02:49:54,460
That was already budgeted in the current budget.

1879
02:49:55,380 --> 02:50:02,680
So the thing that we were asking for is, now the COVID-19 has kicked in, what cost savings

1880
02:50:02,680 --> 02:50:04,400
are we doing now moving forward?

1881
02:50:05,040 --> 02:50:10,780
And if this was something that was already looked at in budgeted in 2019, this was something

1882
02:50:10,780 --> 02:50:16,180
that was already decided upon prior to the budget issues that we're having currently.

1883
02:50:16,740 --> 02:50:21,700
And so I was hoping that we were going to get some type of update what we're doing now

1884
02:50:21,700 --> 02:50:22,600
moving forward.

1885
02:50:23,620 --> 02:50:29,980
So, correct me if I'm wrong, just, you said these numbers, the vacancies were 20,

1886
02:50:30,080 --> 02:50:37,640
1920, are currently have already been realized in the current budget prior to COVID-19,

1887
02:50:37,680 --> 02:50:38,260
is that correct?

1888
02:50:40,310 --> 02:50:40,530
Jeff?

1889
02:50:43,580 --> 02:50:43,800
Thank you.

1890
02:50:45,320 --> 02:50:45,720
So, how are you?

1891
02:50:47,940 --> 02:50:49,220
I'm sorry.

1892
02:50:50,400 --> 02:50:56,320
If I understand your question, you're asking if the 1.5 million was included in

1893
02:50:56,320 --> 02:51:04,120
the original budget, the answer to that is yes and by freezing the positions at this point

1894
02:51:04,120 --> 02:51:11,940
and in other words, not hiring them moving forward, it would be a savings, if you will,

1895
02:51:12,020 --> 02:51:16,060
a budget reduction in expenses to the city of 1.5 million.

1896
02:51:17,600 --> 02:51:21,680
Yes, I understand that, but this was already realized that I can tune the 2019 when the

1897
02:51:21,680 --> 02:51:26,980
was approved. And what I was hoping for was, what are we doing now since the COVID-19

1898
02:51:26,980 --> 02:51:34,060
is kicked in, what we can do to see any other savings moving forward with the new information

1899
02:51:34,060 --> 02:51:38,920
that we have now with budget issues that we're going to now. So this is something I was

1900
02:51:38,920 --> 02:51:44,220
pre-COVID-19 and I understand that. I just hope that was going to get some information

1901
02:51:44,220 --> 02:51:50,020
what we're doing at this point moving forward for this current fiscal year and seeing what type

1902
02:51:50,020 --> 02:51:55,300
savings we can realize after this much crisis so those are numbers that I would

1903
02:51:55,300 --> 02:51:59,640
like to see what we're planning on doing if we're doing anything at all moving

1904
02:51:59,640 --> 02:52:07,360
forward and then so I will hopefully we have discussed later on that and that's

1905
02:52:09,920 --> 02:52:10,080
it

1906
02:52:10,080 --> 02:52:14,280
for now thank you but they have a one question.

1907
02:52:18,800 --> 02:52:22,560
Okay, Councilor

1908
02:52:22,560 --> 02:52:31,600
sales tax revenue will lose down $4 million and then can we figure out for the budget

1909
02:52:31,600 --> 02:52:42,660
2020 to 2020 first how much we can save for these salaries can we because right now

1910
02:52:42,660 --> 02:52:51,800
those you know employees we may some of them we may hire back so can somebody figure

1911
02:52:51,800 --> 02:52:57,960
out about a salary, how much we can save for next, officially, a physical year.

1912
02:52:59,540 --> 02:53:05,740
One of the slides showed, was the reduction of 5% of salaries, and that was requested

1913
02:53:05,740 --> 02:53:06,500
by consoles.

1914
02:53:07,500 --> 02:53:11,700
And that shows how much money we would say that they were at 5% and at 2%.

1915
02:53:11,700 --> 02:53:12,940
1.1 million?

1916
02:53:13,840 --> 02:53:14,100
Yes.

1917
02:53:15,880 --> 02:53:27,600
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.

1918
02:53:28,300 --> 02:53:34,620
So we could literally eliminate all of those positions in the hourly positions without impacting individuals.

1919
02:53:38,430 --> 02:53:39,850
Okay, thank you.

1920
02:53:39,850 --> 02:53:43,790
Mayor, I have some more questions if you don't mind.

1921
02:53:44,350 --> 02:53:44,490
Okay.

1922
02:53:46,570 --> 02:54:11,030
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.

1923
02:54:11,030 --> 02:54:12,950
and negotiation of

1924
02:54:15,190 --> 02:54:17,470
information in front of me.

1925
02:54:18,030 --> 02:54:21,490
The PowerPoint shows other things that you talked about.

1926
02:54:21,850 --> 02:54:25,450
That would be nice to have if you can't provide that to council.

1927
02:54:26,010 --> 02:54:28,410
So that way we can have it in front of us when we do make the decision

1928
02:54:28,410 --> 02:54:30,910
know what we should and can and we'll do.

1929
02:54:31,570 --> 02:54:35,990
So we don't do anything that would violate those

1930
02:54:35,990 --> 02:54:38,470
current rules and procedures and policies.

1931
02:54:39,390 --> 02:54:40,150
I would appreciate that.

1932
02:54:40,150 --> 02:54:41,190
Thank you.

1933
02:54:41,190 --> 02:54:54,850
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.

1934
02:54:55,770 --> 02:54:57,790
And it will set the procedure forward.

1935
02:54:59,170 --> 02:54:59,910
Thank you.

1936
02:55:02,490 --> 02:55:03,090
Thank you.

1937
02:55:04,050 --> 02:55:04,330
Thank you.

1938
02:55:04,490 --> 02:55:05,410
On your behalf.

1939
02:55:05,410 --> 02:55:06,530
Dear, may I follow up?

1940
02:55:06,610 --> 02:55:06,850
Please.

1941
02:55:11,850 --> 02:55:12,270
Thank you.

1942
02:55:15,550 --> 02:55:22,750
So, specifically, who's the labor attorney that we reached out to?

1943
02:55:23,130 --> 02:55:25,490
We reached out to both in Goldstein?

1944
02:55:26,530 --> 02:55:27,590
Yes, sir.

1945
02:55:29,490 --> 02:55:36,170
So, just continuing what we were talking about Patricia about the full-time vacancies and the part-time vacancies

1946
02:55:36,170 --> 02:55:45,450
and the salary savings for fiscal year 2019-2020 that you calculated for us, that salary

1947
02:55:45,450 --> 02:55:53,790
savings for the entire fiscal year, fiscal year 2019-2020, that ends on June 30, 2020,

1948
02:55:54,990 --> 02:55:55,250
Patricia?

1949
02:55:59,020 --> 02:56:22,740
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.

1950
02:56:25,620 --> 02:56:37,260
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?

1951
02:56:43,930 --> 02:56:59,090
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.

1952
02:56:59,090 --> 02:57:08,630
year. That would be about $850,000. Just to give you an idea of the difference.

1953
02:57:09,530 --> 02:57:14,270
Okay, so thank you. So thank you for clarifying this. So you've calculated these amounts.

1954
02:57:14,970 --> 02:57:19,450
What was so? It's through the, you've already confirmed it's through the end of the fiscal

1955
02:57:19,450 --> 02:57:25,850
year. The salary savings are through the end of the fiscal year, June 30, 2020. What is

1956
02:57:25,850 --> 02:57:31,750
starting date for this calculation. What date did you use as the start date for this

1957
02:57:31,750 --> 02:57:32,670
time period, please?

1958
02:57:35,540 --> 02:57:39,920
This is, if I remember correctly, this is about for the remainder

1959
02:57:41,120 --> 02:57:48,780
than for an April for two full months. So this is, so this $1.5 million in savings is for two

1960
02:57:48,780 --> 02:57:56,660
months of time for these 10 full time jobs and these 111 part time jobs. Yes, the remainder of the

1961
02:57:56,660 --> 02:57:56,960
square.

1962
02:57:59,000 --> 02:58:05,600
Okay, so work. So what this information is letting us know in dealing with this

1963
02:58:05,600 --> 02:58:13,320
COVID-19 pandemic and the local emergency and the effect on our finances is if we keep

1964
02:58:13,320 --> 02:58:21,740
these positions unfilled for the remainder of the fiscal year by taking that approach, by

1965
02:58:21,740 --> 02:58:29,100
being proactive and keeping these positions unfilled, you're saying you're letting us know

1966
02:58:30,100 --> 02:58:36,880
we're saving about one in a half million dollars for the last two months of the fiscal year.

1967
02:58:40,950 --> 02:58:41,470
That's correct.

1968
02:58:42,450 --> 02:58:43,250
Okay, thank you.

1969
02:58:43,550 --> 02:58:45,170
And that's just salary, right?

1970
02:58:45,370 --> 02:58:45,630
Patricia?

1971
02:58:47,910 --> 02:58:52,670
That's what you were able to calculate for us today on this short note is the salary, correct?

1972
02:58:53,070 --> 02:58:53,690
That's correct.

1973
02:58:53,690 --> 02:59:02,570
So, what you were kind enough to remind us in your presentation, and in the power and in the slides,

1974
02:59:03,190 --> 02:59:07,010
is you reminded us that those salary savings do not include fringe benefits.

1975
02:59:07,910 --> 02:59:13,590
They do not include fringe benefits for the full-time positions, and they do not include fringe benefits for the part-time positions.

1976
02:59:14,230 --> 02:59:21,690
So, is it correct that the actual savings to the city by keeping these positions unfilled will end up actually being

1977
02:59:21,690 --> 02:59:24,410
more than one and a half million dollars?

1978
02:59:32,030 --> 02:59:36,140
Yes, yes sir.

1979
02:59:37,500 --> 02:59:39,200
Thank you, Councilmember.

1980
02:59:39,760 --> 02:59:41,240
The sure answer is yes.

1981
02:59:41,460 --> 02:59:43,600
There will be some savings out of benefits.

1982
02:59:44,680 --> 02:59:46,540
The benefit calculation is very complicated,

1983
02:59:47,520 --> 02:59:53,180
but we will likely see some reduction associated with

1984
02:59:53,180 --> 02:59:54,860
not filling those positions.

1985
02:59:56,160 --> 02:59:56,720
Okay, great.

1986
02:59:56,880 --> 02:59:59,960
And like you said, and I expected to know that.

1987
03:00:00,000 --> 03:00:07,020
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.

1988
03:00:07,620 --> 03:00:17,720
But I just wanted to get that clarification while we're talking about taking a strategic approach in responding to the COVID-19 pandemic

1989
03:00:17,720 --> 03:00:26,200
and considering keeping these full-time positions unfilled and these part-time positions unfilled for the remainder of the fiscal year.

1990
03:00:26,200 --> 03:00:37,380
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?

1991
03:00:38,680 --> 03:00:39,760
That is correct.

1992
03:00:40,660 --> 03:00:44,340
Okay, thank you so much, Chef. Thank you, Mayor. That's my question.

1993
03:00:46,670 --> 03:00:49,290
So Patricia, let me ask that question again.

1994
03:00:50,310 --> 03:00:58,570
So, these 10 full-time positions unfilled was that just we decided in April to not to

1995
03:00:58,570 --> 03:01:03,230
fail, or we decided in fiscal year 2019 to 2020 not to fail.

1996
03:01:06,170 --> 03:01:07,630
It's been more than a year, Mayor.

1997
03:01:08,790 --> 03:01:08,870
Okay.

1998
03:01:09,130 --> 03:01:12,690
So, we have not cut for this last two months, anything.

1999
03:01:15,480 --> 03:01:19,480
What we've done is prepared a budget showing all of the cuts.

2000
03:01:20,560 --> 03:01:29,320
If I can't bear and that's not enough, when we had a meeting on Monday, special meetings

2001
03:01:29,320 --> 03:01:36,980
regarding cutting the budget for last 10 week of this year, what steps have we taken for

2002
03:01:36,980 --> 03:01:37,960
last 10 weeks?

2003
03:01:38,300 --> 03:01:46,140
Was this cut, was done for last 10 weeks or was this was we did not fill this and was this

2004
03:01:46,140 --> 03:01:49,760
already adopted in 2019, 2020 budget.

2005
03:01:51,360 --> 03:01:55,080
Do you have if you want to go into part of your summary on as we relate to the next item?

2006
03:01:55,840 --> 03:01:56,780
The total summary?

2007
03:01:58,500 --> 03:01:59,080
Yes, sir.

2008
03:01:59,200 --> 03:02:00,300
We can certainly move on.

2009
03:02:01,680 --> 03:02:02,520
We're familiar with that.

2010
03:02:02,700 --> 03:02:04,240
May I answer some of your questions?

2011
03:02:04,960 --> 03:02:06,760
If we move on, we'll have a couple of slides.

2012
03:02:07,240 --> 03:02:07,740
That's all right.

2013
03:02:08,240 --> 03:02:12,980
You think that we part-time position on field 111?

2014
03:02:12,980 --> 03:02:19,980
did we lay off anybody in last month in April so that way we have vacancy this?

2015
03:02:20,940 --> 03:02:21,220
No.

2016
03:02:22,240 --> 03:02:22,800
Over the week?

2017
03:02:22,920 --> 03:02:24,220
We have not.

2018
03:02:24,600 --> 03:02:30,200
So in total entire year of 2019 to 2020, we did not fill these positions.

2019
03:02:30,920 --> 03:02:32,260
In whole year, right?

2020
03:02:32,820 --> 03:02:33,060
Yes.

2021
03:02:33,220 --> 03:02:39,040
Over time, as positions open, just like the tenfold time, as position open, we did not fill them.

2022
03:02:39,040 --> 03:02:46,140
Okay, was this item was in budget and adopted in 2019 2020 did numbers?

2023
03:02:47,900 --> 03:02:50,900
I don't recall that. I have to look.

2024
03:02:52,300 --> 03:03:03,120
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.

2025
03:03:03,660 --> 03:03:07,620
How do you get the project that somebody is going to live and we are going to fill up the positions?

2026
03:03:08,160 --> 03:03:09,580
And this is the amount going to be.

2027
03:03:13,580 --> 03:03:23,080
These numbers were calculated on based on when the positions were vacated, and which is essentially all over the map.

2028
03:03:24,020 --> 03:03:40,720
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.

2029
03:03:40,720 --> 03:03:50,080
The reason why the number is lower now is because the positions were vacated in a staggered

2030
03:03:50,080 --> 03:03:52,080
way throughout the year.

2031
03:03:52,800 --> 03:03:57,840
They were scheduled to be filled, they were budgeted to be filled, and with the onset

2032
03:03:57,840 --> 03:04:04,680
of COVID-19 crisis, the city manager has made the determination essentially to freeze those

2033
03:04:04,680 --> 03:04:11,660
positions to help combat our declining revenues by a way of limiting our expenses and our exposure

2034
03:04:11,660 --> 03:04:12,600
to those liabilities.

2035
03:04:13,460 --> 03:04:14,540
I simple question.

2036
03:04:15,160 --> 03:04:17,780
I don't want to go this round and you know of this number.

2037
03:04:18,400 --> 03:04:21,760
For last two months, have we cut anything?

2038
03:04:23,620 --> 03:04:29,880
Have we cut anything or we have every single employee keep getting paid while they're not working?

2039
03:04:30,640 --> 03:04:32,740
Have we cut anything for last ten weeks?

2040
03:04:33,580 --> 03:04:39,680
of this this this this career this position was already calculated in our budget

2041
03:04:39,680 --> 03:04:45,560
they were we did not fill it but we didn't cut anything did we programs and

2042
03:04:45,560 --> 03:04:51,720
activities okay program and activities that's all different story we are just talking

2043
03:04:51,720 --> 03:04:54,440
about payroll saving right now here

2044
03:05:02,250 --> 03:05:05,650
do we have a saving on the payroll for last

2045
03:05:05,650 --> 03:05:12,190
10 weeks that we're going to be out of business in this year, 2019, 2020,

2046
03:05:16,030 --> 03:05:17,330
can somebody answer that for us?

2047
03:05:23,330 --> 03:05:23,650
Sure, sure.

2048
03:05:23,650 --> 03:05:27,330
The business, we lose business, we cut expense.

2049
03:05:27,510 --> 03:05:30,270
How is city is cutting expense for last 10 weeks?

2050
03:05:34,930 --> 03:05:36,870
In budget we're preparing there.

2051
03:05:37,510 --> 03:05:40,470
As all of a sudden, that is 2020 to 2021.

2052
03:05:40,630 --> 03:05:43,370
I am talking about immediate action.

2053
03:05:43,370 --> 03:05:50,450
has the city has taken any use, any action possible to reduce impact from this pandemic.

2054
03:05:50,830 --> 03:05:56,350
Currently, because we already lost $1.2 million in revenue in very short time.

2055
03:05:56,570 --> 03:05:59,430
And on top of that, we are recently spent $42,000.

2056
03:06:02,320 --> 03:06:04,580
And we've applied for a real fund and all of those dollars.

2057
03:06:05,320 --> 03:06:06,560
$42,000 doesn't matter.

2058
03:06:06,840 --> 03:06:10,080
But we did lost $1.2 million in very short time.

2059
03:06:10,920 --> 03:06:13,480
And we're going to continue to lose more, because just like a hotel,

2060
03:06:13,480 --> 03:06:20,240
the TOT and the card cells and the cell tests. So, we don't have income, yet as our

2061
03:06:20,240 --> 03:06:24,620
counsel, it's real blame for it, that we have not made enough cuts.

2062
03:06:27,980 --> 03:06:32,040
Well, that's what we're attempting to do, Mayor's proposed and present to you a budget that

2063
03:06:32,040 --> 03:06:33,200
will show to the cuts.

2064
03:06:36,240 --> 03:06:39,140
That is for a future, right? Yes, sir.

2065
03:06:39,780 --> 03:06:47,700
Okay. I am talking about now. Current, current, your fiscal year for 10 weeks or 9 weeks

2066
03:06:47,700 --> 03:06:56,620
that we have left what are we doing possibly to reduce the impact from the pandemic and do not

2067
03:06:56,620 --> 03:07:00,680
have income and we are losing revenue day by day

2068
03:07:03,080 --> 03:07:06,500
and everyone is asking us to defer

2069
03:07:06,500 --> 03:07:07,100
the rent.

2070
03:07:07,440 --> 03:07:13,380
That's also has not even calculated yet in that 1.2 million dollars for this year.

2071
03:07:13,880 --> 03:07:13,940
Correct?

2072
03:07:15,160 --> 03:07:16,140
Yes sir.

2073
03:07:16,900 --> 03:07:24,180
So, we could be in last 10 or 9 ways, we could be upside down 3 to 4 million dollars.

2074
03:07:26,800 --> 03:07:28,140
We have no accent plan.

2075
03:07:33,080 --> 03:07:35,620
You know, when you're done, I would like to also make some comments.

2076
03:07:38,230 --> 03:07:39,990
Okay, I'm done medical time. You go ahead.

2077
03:07:40,110 --> 03:07:42,150
Because I am not getting answered what I'm looking for.

2078
03:07:42,410 --> 03:07:44,390
All I'm getting is round and round and round.

2079
03:07:46,190 --> 03:07:47,250
Thank you, Mayor.

2080
03:07:47,730 --> 03:07:50,230
So, I just want to clarify too.

2081
03:07:50,290 --> 03:07:53,390
I'm all of it confused now because the slide says,

2082
03:07:53,390 --> 03:07:56,850
Unfilled part-time position, this school year 2019-2020.

2083
03:07:57,650 --> 03:08:02,090
It does not say this school year 2019-2020 made in June,

2084
03:08:02,990 --> 03:08:09,190
so that's why my impression of this report of 1.5 million savings

2085
03:08:09,190 --> 03:08:13,390
is spread out through the year of 2019-2020.

2086
03:08:13,830 --> 03:08:17,330
However, it was just mentioned that this is only

2087
03:08:17,330 --> 03:08:21,290
for the last two months of the rest of this fiscal year.

2088
03:08:21,290 --> 03:08:28,770
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?

2089
03:08:29,430 --> 03:08:31,930
Can I get the whole year savings then please?

2090
03:08:36,330 --> 03:08:38,150
Do you have it?

2091
03:08:38,250 --> 03:08:39,210
Yes, sir.

2092
03:08:41,840 --> 03:08:42,600
You want second year.

2093
03:08:42,740 --> 03:08:43,420
I'm just checking right now.

2094
03:08:43,820 --> 03:08:44,880
I believe in and Ms.

2095
03:08:44,920 --> 03:08:49,360
Lavea could possibly chime in to verify this.

2096
03:08:49,860 --> 03:08:57,400
I believe the calculations for an entire year for the part-time positions for these 111 part-time

2097
03:08:57,400 --> 03:09:07,340
positions would be $2.1 million and the full-time positions, the 10 of them, would be approximately

2098
03:09:07,340 --> 03:09:10,280
$560,000 salary.

2099
03:09:11,320 --> 03:09:20,400
So, that is to say, if they were which the City Manager has directed the budget office

2100
03:09:20,400 --> 03:09:26,060
to project that moving forward for next year, that would be the reduction in positions

2101
03:09:26,060 --> 03:09:33,280
that the city council would see. So for one year for the part time, it would be 2.1 to 2.2 million.

2102
03:09:34,800 --> 03:09:39,440
Excuse me, for full time, the 10 decisions that would be about 560,000.

2103
03:09:41,060 --> 03:09:45,900
Okay, thank you. So you're saying that for two months of savings on the rest of the specific year,

2104
03:09:46,200 --> 03:09:51,100
we'll say 1.253 or 85, we're just two months.

2105
03:09:51,100 --> 03:09:55,940
But if you look at the whole year of this 2019-2020, it's 2.1.

2106
03:09:58,180 --> 03:10:01,040
So that calculation doesn't make sense to me,

2107
03:10:01,720 --> 03:10:04,680
because if you look at two months' worth of savings,

2108
03:10:04,740 --> 03:10:06,880
and you multiply that by 12 months,

2109
03:10:07,440 --> 03:10:10,280
I see a savings of almost 7 million,

2110
03:10:10,620 --> 03:10:13,420
if these were the two months' real numbers,

2111
03:10:13,880 --> 03:10:15,420
or the rest of this fiscal year.

2112
03:10:15,940 --> 03:10:19,280
So that's why, and then you're just as the right now,

2113
03:10:19,280 --> 03:10:24,060
you're saying the whole fiscal year 2019-20, which is the rest of this year, we're just

2114
03:10:24,060 --> 03:10:31,120
focused on this year, not next year. You're just doubling the number for each group, it looks

2115
03:10:31,120 --> 03:10:36,760
like, but then you're spreading over 12 months instead of 4 months. So that's where I'm confused.

2116
03:10:37,060 --> 03:10:42,300
And again, it's probably mean as confused, but the numbers to me don't make sense, and hopefully

2117
03:10:42,300 --> 03:10:47,220
you can clarify that. Not just to me, but also to the rest council, also to the public,

2118
03:10:47,220 --> 03:10:51,560
because that would lend for more questions moving forward.

2119
03:10:52,420 --> 03:10:56,520
And so that's why I was asking because the slide says 2019, 2020.

2120
03:10:57,220 --> 03:11:01,060
So that's the savings for the year, then I would understand that.

2121
03:11:01,080 --> 03:11:06,160
But since it was confirmed, this is only for the last two months of the rest of this fiscal year.

2122
03:11:06,360 --> 03:11:10,540
Those are the actual numbers of savings for this next two months.

2123
03:11:11,180 --> 03:11:16,360
Then I just wanted to know what the whole year was prior to these two months.

2124
03:11:16,360 --> 03:11:23,100
And you're saying it's 2.1 for full-time. I'm sorry part-time and 560,000 for full-time.

2125
03:11:23,400 --> 03:11:28,540
And again, that's 12 months worth not four months worth to business things like you're just doubling the number.

2126
03:11:31,290 --> 03:11:38,070
And also on the part-time 111, you pay 1.2 million, you put a stack, does not include fringe benefit.

2127
03:11:38,270 --> 03:11:39,810
Part-time don't get fringe benefit.

2128
03:11:41,330 --> 03:11:45,330
Some do, sir. Very few, but some do.

2129
03:11:45,330 --> 03:11:49,650
Okay, you should need to show the different numbers there.

2130
03:11:49,650 --> 03:11:51,030
Why do you think that will be everything?

2131
03:11:51,570 --> 03:11:57,830
If I may, on the French benefits, you would be looking at an additional rate of about 75%

2132
03:11:57,830 --> 03:11:58,990
on type of salary.

2133
03:12:00,490 --> 03:12:10,610
And the French benefit rate, and Jeff, you can correct me on this, is pull sharing of expense over and among all employees.

2134
03:12:14,610 --> 03:12:22,390
Anyway, but this, you know, what I say this, this number, don't look correct, don't look right,

2135
03:12:23,010 --> 03:12:30,250
and these are the numbers which came from the budget book for 2019-2020 that we were looking

2136
03:12:30,250 --> 03:12:36,350
for something to make some immediate cuts and immediate changes for last 10 weeks, and I don't

2137
03:12:36,350 --> 03:12:44,330
that year. We'll keep worrying about 2019 and 2020 new budgets, but nothing is done or said

2138
03:12:44,330 --> 03:12:50,990
or that I hear that what are we doing to offset the loss of revenue for this last two

2139
03:12:50,990 --> 03:12:54,610
and half months on this year?

2140
03:12:55,530 --> 03:13:05,290
I have one question, okay. So very simple question. Last two months, for instance, CCPA, we didn't

2141
03:13:05,290 --> 03:13:16,530
We don't have any things, did we ever lay off any employees from over the last two months?

2142
03:13:17,490 --> 03:13:22,790
If we lay off somebody, how many did we lay off?

2143
03:13:23,190 --> 03:13:26,790
We really don't need that many employees right now for CCPA.

2144
03:13:27,270 --> 03:13:33,410
Even for next few months or three to six months, we don't need that many employees in CCPA.

2145
03:13:33,410 --> 03:13:41,210
So, did we ever lay off last couple of months, just last eight or ten, ten weeks?

2146
03:13:42,730 --> 03:13:48,050
We have, yes, we have not hired back the hourly employees that have left.

2147
03:13:48,570 --> 03:13:52,230
How many, our employee left?

2148
03:13:53,570 --> 03:13:56,150
We've got it in the slide here, we're going to pull it up.

2149
03:13:57,790 --> 03:13:58,690
That's not enough.

2150
03:13:59,410 --> 03:14:00,410
Maybe we need to lay off.

2151
03:14:00,410 --> 03:14:02,570
They're still getting paid for it, right?

2152
03:14:03,070 --> 03:14:05,890
No, sir, the ones that left are gone.

2153
03:14:05,990 --> 03:14:06,610
How many?

2154
03:14:08,830 --> 03:14:09,310
I don't know.

2155
03:14:09,310 --> 03:14:09,470
I don't know.

2156
03:14:09,470 --> 03:14:10,270
I don't have to check that.

2157
03:14:10,690 --> 03:14:15,940
If I may say something, at the beginning of the presentation, I made the comments that

2158
03:14:15,940 --> 03:14:17,520
these are very raw numbers.

2159
03:14:17,860 --> 03:14:20,460
We put this together in 72 hours, all these reports.

2160
03:14:21,640 --> 03:14:22,740
So is everything perfect?

2161
03:14:23,340 --> 03:14:24,040
Are we getting there?

2162
03:14:24,960 --> 03:14:27,000
We needed more time, as I mentioned to you, Mr. Mayor.

2163
03:14:28,020 --> 03:14:28,380
I won't.

2164
03:14:28,660 --> 03:14:31,620
They all have a 70% of our employees.

2165
03:14:31,620 --> 03:14:37,940
I think CTPP for the type being they should lay out of this, you know,

2166
03:14:38,040 --> 03:14:44,200
more, you know, a few times in the part-time employees, so if only one or two

2167
03:14:44,200 --> 03:14:48,380
part-time, I don't think that's enough, we are losing 1.2 million

2168
03:14:48,380 --> 03:14:50,960
hours, you know, last couple months.

2169
03:14:51,840 --> 03:14:57,020
All the employees, councilwoman that have left, we're not rehiring, plus we're also

2170
03:14:57,020 --> 03:14:59,960
asking the militants to leave the theater and there's

2171
03:15:00,000 --> 03:15:10,420
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.

2172
03:15:10,800 --> 03:15:17,740
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.

2173
03:15:20,900 --> 03:15:22,080
Okay, thank you.

2174
03:15:25,120 --> 03:15:31,480
Okay, any of the concept any questions on this item people move on is I didn't got Michael answers

2175
03:15:34,680 --> 03:15:36,320
What is next item?

2176
03:15:39,320 --> 03:15:46,730
next we have Jeff for the proposed cut so scuts

2177
03:15:51,020 --> 03:15:53,560
Thank you mayor jump till e-budget manager

2178
03:15:55,080 --> 03:15:59,400
As mentioned earlier some of the e

2179
03:15:59,960 --> 03:16:04,520
Revenues for the city are being disrupted and are changing on a daily basis

2180
03:16:05,240 --> 03:16:10,060
Of course, the most notable of these is your sales tax revenues.

2181
03:16:11,460 --> 03:16:16,300
This presents a unique challenge for the city given that the budget is a point in time

2182
03:16:16,300 --> 03:16:23,300
document that provides the city with a compass or a road map if you will for programs and services.

2183
03:16:24,580 --> 03:16:26,820
And that road map is changing day by day.

2184
03:16:27,680 --> 03:16:34,240
Given this unique situation and the unpredictability of our traditional resources due to the

2185
03:16:34,240 --> 03:16:41,260
of COVID-19, the City Manager's strategic response to this crisis is centered on reducing

2186
03:16:41,260 --> 03:16:45,940
expenditures with minimal impact to city services wherever possible.

2187
03:16:46,760 --> 03:16:51,420
To that end, the City Manager has been working with the Budget Office and the Finance

2188
03:16:51,420 --> 03:16:56,320
Division for several weeks to reduce expenditures to combat the ongoing reduction

2189
03:16:56,320 --> 03:16:58,640
in our revenue streams.

2190
03:16:59,660 --> 03:17:14,700
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.

2191
03:17:16,160 --> 03:17:16,980
Next slide please.

2192
03:17:20,430 --> 03:17:29,590
In this slide we are attempting to illustrate the cuts to the budgeted operations and maintenance expenditures in the current year.

2193
03:17:29,590 --> 03:17:36,350
broken down by the department. All of these cuts combined are projected to

2194
03:17:36,350 --> 03:17:42,270
result in approximately $2.5 million in expenditure reductions for the

2195
03:17:42,270 --> 03:17:44,990
city this year.

2196
03:17:49,750 --> 03:17:54,370
These adjustments were provided in cooperation with all

2197
03:17:54,370 --> 03:17:59,730
departments and divisions across a few hundred operational accounts. This slide

2198
03:17:59,730 --> 03:18:03,490
provides a summary of some of those account types across all departments.

2199
03:18:04,350 --> 03:18:10,970
These account types include equipment, office and special supplies, program expenses,

2200
03:18:11,810 --> 03:18:16,830
printing and postage, travel and meeting, and professional and outside services.

2201
03:18:18,010 --> 03:18:18,770
Next slide please.

2202
03:18:22,970 --> 03:18:29,410
In this slide we are illustrating cuts to the current capital improvement program or

2203
03:18:29,410 --> 03:18:36,030
P budget in the current year by deferring previously approved projects to a future year.

2204
03:18:36,490 --> 03:18:41,170
This is broken down by project classification just like you see it in the budget book.

2205
03:18:41,690 --> 03:18:49,430
All of these deferrals combined result in a $5.9 million budget expenditure reduction for the city this year.

2206
03:18:51,870 --> 03:18:52,570
Next slide please.

2207
03:18:56,380 --> 03:19:00,360
These adjustments were provided in cooperation with the Department of Public Works.

2208
03:19:00,360 --> 03:19:11,500
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.

2209
03:19:12,380 --> 03:19:18,580
This slide provides a summary of just some of those projects, including the Sunshine Park playground,

2210
03:19:20,660 --> 03:19:22,700
the city's facility security equipment,

2211
03:19:23,600 --> 03:19:38,040
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.

2212
03:19:39,620 --> 03:19:40,200
Next slide please.

2213
03:19:43,360 --> 03:19:47,760
This slide provides a summary view of all reductions to date made by the city manager.

2214
03:19:47,760 --> 03:19:53,900
including those personnel, vacancy freezes discussed by Ms. Leyva just a few moments ago.

2215
03:19:54,520 --> 03:19:59,620
The total estimated reductions at this point represent nearly $10 million for the current fiscal year.

2216
03:20:00,460 --> 03:20:07,980
And while we are working hard to produce a fiscal year 2021 budget for the May 18 study session this year,

2217
03:20:08,720 --> 03:20:11,160
staff has been challenged by these unprecedented times.

2218
03:20:11,840 --> 03:20:16,160
Again, the city manager has been working very closely with both the budget office and the finance division.

2219
03:20:16,160 --> 03:20:24,280
To monitor the continuously evolving numbers and crafting a strategic response to the reduction of our major revenue streams.

2220
03:20:24,420 --> 03:20:26,920
This concludes my portion of this item.

2221
03:20:27,600 --> 03:20:29,180
We are available for any questions.

2222
03:20:33,400 --> 03:20:34,040
Same question.

2223
03:20:34,320 --> 03:20:39,700
What this thing was cut for the COVID or was already cut in the year that we didn't need

2224
03:20:39,700 --> 03:20:44,800
at some of these operas and then maintenance expenditure.

2225
03:20:44,800 --> 03:20:45,580
But

2226
03:20:47,950 --> 03:20:52,470
these cuts were directed by the city manager and direct response to COVID-19.

2227
03:20:52,970 --> 03:20:54,810
So, all these things have an up there.

2228
03:20:55,150 --> 03:20:55,370
Correct.

2229
03:20:56,370 --> 03:21:04,030
So, including that, you guys will fully let it 1.25, 3, 485, 250,000 for 2 months.

2230
03:21:06,110 --> 03:21:07,330
And the payroll.

2231
03:21:09,530 --> 03:21:13,090
So, if you divide that by 2,700,000 times 12 months,

2232
03:21:13,090 --> 03:21:15,830
was 9 was originally was budget at $9 million.

2233
03:21:20,120 --> 03:21:26,540
I think the confusion is, if I could go back and talk about the vacancies again,

2234
03:21:27,360 --> 03:21:27,740
it's okay.

2235
03:21:28,760 --> 03:21:30,120
We're not going to get anywhere.

2236
03:21:31,760 --> 03:21:35,360
So this expenditure was reduction.

2237
03:21:35,700 --> 03:21:38,780
And all this happened in this last two weeks.

2238
03:21:40,870 --> 03:21:43,310
In more than a half, and in the next couple of weeks, based on this

2239
03:21:44,710 --> 03:21:52,530
We have action to take for the ten employees and the news and the employees that will all be done in this next month.

2240
03:21:54,940 --> 03:22:00,680
The idea of all this items committed to development department, $63,000.

2241
03:22:00,940 --> 03:22:02,720
What did we do in there?

2242
03:22:03,140 --> 03:22:04,880
That we did use $64,000.

2243
03:22:05,660 --> 03:22:06,960
Just the one item I have question.

2244
03:22:13,610 --> 03:22:15,730
We have decided for you.

2245
03:22:15,730 --> 03:22:22,270
If you can give me just one moment I have some notes on that or some detail that I could share with you.

2246
03:22:35,120 --> 03:22:40,700
I'm going to office and working with all of the departments and you were asking specifically about community development.

2247
03:22:44,880 --> 03:22:55,560
They had 63,495 in reductions from the mid-year entry that they had put in January.

2248
03:22:55,560 --> 03:23:02,660
And some of those reductions came if I can just pick out a few here, some of the larger ones.

2249
03:23:03,100 --> 03:23:11,720
There was a $25,000 change reduction for housing element preparation, which is beginning later.

2250
03:23:11,900 --> 03:23:16,140
So they identified that as a cut that we could do to respond to COVID-19.

2251
03:23:19,980 --> 03:23:23,240
We had current planning.

2252
03:23:26,860 --> 03:23:27,080
Okay.

2253
03:23:27,380 --> 03:23:28,000
Next slide.

2254
03:23:28,020 --> 03:23:28,940
Let's open this item.

2255
03:23:29,560 --> 03:23:33,060
Administrative Service $1 million introduction.

2256
03:23:33,680 --> 03:23:35,480
Where is that number came from?

2257
03:23:37,440 --> 03:23:42,640
Similar cuts to all of those types of accounts that I mentioned earlier.

2258
03:23:42,960 --> 03:23:44,920
Although I will say for administrative services.

2259
03:23:45,420 --> 03:23:48,380
Perhaps the sum of it more than $1 million in the Administrative Service.

2260
03:23:48,620 --> 03:23:50,000
Give me a couple of little number examples.

2261
03:23:50,940 --> 03:23:57,040
The largest single cut and administrative services was about $400,000 in equipment.

2262
03:23:58,180 --> 03:24:08,000
The city manager asked the budget office to identify any equipment items that had not been purchased yet.

2263
03:24:08,320 --> 03:24:11,480
And asked us to freeze those just a few days ago.

2264
03:24:11,980 --> 03:24:20,420
So we were able to identify approximately $400,000 in unspent funds for equipment this year

2265
03:24:20,420 --> 03:24:25,340
at the City Council that already approved. And we have frozen those in response to COVID-19.

2266
03:24:25,980 --> 03:24:32,120
So those are capital improvement. We can't find it. It's equipment.

2267
03:24:33,460 --> 03:24:38,240
Truck, it is more, you are correct. It is considered capital outlay, but it's not capital improvement.

2268
03:24:38,540 --> 03:24:46,030
It is equipment assets. Okay. And in phase of government buildings, 4.8 million. What is that?

2269
03:24:47,630 --> 03:24:59,570
That's part of the Capital Improvement Program, the largest segment in that cut was likely

2270
03:24:59,570 --> 03:25:03,430
due to the Morgan Project's rehabilitation,

2271
03:25:06,410 --> 03:25:07,050
not starting.

2272
03:25:11,040 --> 03:25:12,940
So, but that doesn't call it really a cut,

2273
03:25:15,430 --> 03:25:16,870
which is not doing it,

2274
03:25:19,570 --> 03:25:20,450
in my right or maybe I'm

2275
03:25:20,450 --> 03:25:20,750
wrong.

2276
03:25:26,080 --> 03:25:26,900
Did we move this?

2277
03:25:28,430 --> 03:25:31,910
At this time, I'll call a question from the Council, Councilman Hewf.

2278
03:25:31,910 --> 03:25:40,410
Yeah, thank you. See, this is my question, too. Government buildings for 4.8. Even

2279
03:25:40,410 --> 03:25:50,690
Monica building won't be 4,844,000 dollars. This is my question. Who are the government

2280
03:25:50,690 --> 03:25:59,310
the building's cut reduction. For people as a one example, besides money can be

2281
03:25:59,310 --> 03:25:59,770
beauty.

2282
03:26:01,870 --> 03:26:03,950
That's a lot of money, almost $5 million.

2283
03:26:07,270 --> 03:26:09,690
For you cut, who are you cut?

2284
03:26:14,720 --> 03:26:19,480
Council Member, Council Member Hugh is asking questions staff that, where is that $4.8 million?

2285
03:26:19,960 --> 03:26:20,960
How did he get cut?

2286
03:26:23,580 --> 03:26:33,400
Again, the majority of that would be from the Mullick and building basically being deferred

2287
03:26:33,400 --> 03:26:34,440
until further notice.

2288
03:26:35,840 --> 03:26:41,160
We had some other cuts, I'm kind of going down the list right now.

2289
03:26:41,520 --> 03:26:48,520
We're looking at a variety of cut security equipment replacement and city facilities, reduction

2290
03:26:48,520 --> 03:26:53,700
and senior center operational improvements, reduction, actually the elimination of senior center

2291
03:26:53,700 --> 03:27:02,980
exterior improvements, the reduction of CCPA operational improvements, civic center parking

2292
03:27:02,980 --> 03:27:09,360
structure security camera upgrades, reduction and reduction and corporate yard security

2293
03:27:09,360 --> 03:27:10,300
camera upgrades.

2294
03:27:20,520 --> 03:27:22,280
Did you have any more questions?

2295
03:27:23,300 --> 03:27:27,420
Well, that's the only one question I have at the rest that you already asked.

2296
03:27:28,700 --> 03:27:31,540
Council member, Yokayama, do you have questions on this item?

2297
03:27:34,810 --> 03:27:35,790
Yes, thank you.

2298
03:27:37,680 --> 03:27:38,560
Thank you, Jeff.

2299
03:27:41,780 --> 03:27:46,160
Thank you, Jeff, for sending us with this

2300
03:27:48,210 --> 03:27:50,790
proposal for budget expenditure reductions.

2301
03:27:53,430 --> 03:28:01,330
And what it looks like, what we're doing is for these category of operations and maintenance.

2302
03:28:03,170 --> 03:28:06,450
And then also the category of capital improvement program.

2303
03:28:07,190 --> 03:28:13,150
These were items that were approved in the 2019-2020 fiscal year budget correct?

2304
03:28:15,680 --> 03:28:16,700
That is correct.

2305
03:28:18,100 --> 03:28:25,020
So, we're basically freezing them right now to deal with the 19 pandemic and the local

2306
03:28:25,020 --> 03:28:28,940
emergency that we've declared here in our city in this proposal.

2307
03:28:30,440 --> 03:28:31,240
That is correct.

2308
03:28:33,270 --> 03:28:37,570
But these expenditure requirements are not going away.

2309
03:28:37,870 --> 03:28:41,930
At some point, we're going to need to do these capital improvement programs.

2310
03:28:43,970 --> 03:28:45,570
That is also correct, yes.

2311
03:28:46,430 --> 03:28:46,710
Okay.

2312
03:28:46,710 --> 03:28:48,670
Okay, thank you so much, Jeff.

2313
03:28:50,610 --> 03:28:50,730
Okay.

2314
03:28:51,850 --> 03:28:54,170
Concentment in May of both can both.

2315
03:28:54,550 --> 03:28:55,090
Do you have questions?

2316
03:28:56,050 --> 03:28:56,610
Thank you, Mayor.

2317
03:28:57,750 --> 03:29:02,110
First of all, I do appreciate the fact that staff is trying to answer our questions

2318
03:29:02,110 --> 03:29:07,270
and such short notice when we request it all this at the last meeting.

2319
03:29:07,990 --> 03:29:11,050
It is a lot of information for them to gather and provide us.

2320
03:29:12,410 --> 03:29:15,230
But that, and I do appreciate that.

2321
03:29:15,230 --> 03:29:22,990
One question that I have right now is in regards to the reduction when it comes to operation and

2322
03:29:25,230 --> 03:29:31,150
Maintenance for fiscal year 2019 2020 so the slides are confusing because

2323
03:29:32,450 --> 03:29:39,430
It says fiscal year 2019 2020 and but in this case we're talking about the last two months

2324
03:29:39,430 --> 03:29:44,950
So that's why there is some confusion on my part but on this PowerPoint

2325
03:29:45,230 --> 03:29:50,630
It's very clear that we're only talking about the last two months and the steps that we're taken by

2326
03:29:50,630 --> 03:29:59,790
city manager and staff to reduce the expenses under operation and maintenance on the first slide.

2327
03:30:00,000 --> 03:30:23,760
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.

2328
03:30:23,760 --> 03:30:29,500
I'm just trying to get a grasp on what it covers because it's really general and again I understand

2329
03:30:29,500 --> 03:30:30,540
this was last minute.

2330
03:30:30,780 --> 03:30:34,400
If you had a throw it together for us and hopefully moving forward it can be a little bit more

2331
03:30:34,400 --> 03:30:34,880
clear.

2332
03:30:36,100 --> 03:30:42,240
But this proposed expenditure reduction for the first slide and moving to the next so forth includes

2333
03:30:42,240 --> 03:30:49,620
equipment, personnel, expenses and just everything as you can think of that we can do to

2334
03:30:49,620 --> 03:30:50,340
save money.

2335
03:30:50,340 --> 03:30:51,000
In

2336
03:30:57,340 --> 03:31:10,640
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.

2337
03:31:11,580 --> 03:31:17,840
So, personnel is one section, operations and maintenance is another and capital improvement is another.

2338
03:31:19,260 --> 03:31:22,960
So, in this case, when we're looking at here on the screen,

2339
03:31:23,820 --> 03:31:26,020
operational, excuse me, operations and maintenance,

2340
03:31:27,920 --> 03:31:31,580
that's basically a summary snapshot of some of the,

2341
03:31:31,580 --> 03:31:34,920
just some of the accounts that the entire staff,

2342
03:31:35,000 --> 03:31:37,920
all departments were involved in reviewing their own areas,

2343
03:31:39,640 --> 03:31:46,580
identified cuts that they could do in response to the budget situation.

2344
03:31:47,380 --> 03:31:54,140
And those cuts represent a total reduction in the budget.

2345
03:31:55,960 --> 03:32:01,780
I hesitate to say that it's just representative of the last two months because really

2346
03:32:01,780 --> 03:32:05,020
it's part of the entire budget for the entire fiscal year.

2347
03:32:05,520 --> 03:32:11,540
So that is the safe staff went and identified what was happening right now, what they can

2348
03:32:11,540 --> 03:32:18,640
for what can be delayed, what can be cut, and they put in in total reductions in all of

2349
03:32:18,640 --> 03:32:20,840
the accounts that they analyzed individually.

2350
03:32:22,320 --> 03:32:28,560
And more to your point and your question about some of the detail, I believe that something

2351
03:32:28,560 --> 03:32:38,020
on the order of 250 accounts were touched and changed from the mid-year entries to the city

2352
03:32:38,020 --> 03:32:38,920
managers request.

2353
03:32:38,920 --> 03:32:56,780
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.

2354
03:32:57,420 --> 03:32:58,640
Okay, thank you, Jeff.

2355
03:32:58,900 --> 03:33:03,000
And so just so I'm doing a gathering all my information.

2356
03:33:03,960 --> 03:33:06,660
The past agenda, the last agenda that we've talked about,

2357
03:33:06,780 --> 03:33:11,460
a positive 2.5 million savings moving forward from today.

2358
03:33:11,900 --> 03:33:16,820
And now we're talking about 8.5 million in reductions,

2359
03:33:17,300 --> 03:33:18,680
not including personnel.

2360
03:33:19,540 --> 03:33:21,300
So in the moving forward in the next two months,

2361
03:33:21,460 --> 03:33:22,960
we're going to be saving $11 million.

2362
03:33:24,340 --> 03:33:26,100
And that's the very impressive.

2363
03:33:27,320 --> 03:33:28,620
I hope I see that.

2364
03:33:33,960 --> 03:33:34,580
Thank you.

2365
03:33:35,080 --> 03:33:37,360
So Jeff, back to the total saving,

2366
03:33:37,880 --> 03:33:38,880
a total reduction,

2367
03:33:39,780 --> 03:33:43,680
he shows a 9,951,158.

2368
03:33:44,560 --> 03:33:47,980
So this money was budgeted for 2019,

2369
03:33:49,340 --> 03:33:50,700
And if we don't use this fund,

2370
03:33:50,980 --> 03:33:52,180
they should go back to the reserves.

2371
03:33:52,740 --> 03:33:53,960
10 million dollars.

2372
03:33:55,900 --> 03:33:57,240
Yes, that is correct.

2373
03:33:57,240 --> 03:34:04,780
And whatever fund, if these expenditures would be pulling from, that money would stay in

2374
03:34:04,780 --> 03:34:05,660
their respective fund.

2375
03:34:05,800 --> 03:34:06,840
That is correct in the reserve.

2376
03:34:07,480 --> 03:34:11,240
Right now, we're showing a general fund of $71 million in actual sense that we're going

2377
03:34:11,240 --> 03:34:14,180
to have at the end of the year, maybe $81 million then.

2378
03:34:15,760 --> 03:34:22,580
Well, it's early, I think as Mr. Kerry was explaining earlier, it's difficult to project

2379
03:34:22,580 --> 03:34:31,600
at this point. I would add to that that these reductions represent cuts across all funds,

2380
03:34:31,860 --> 03:34:36,600
not just the general fund. So there may be, for example, in the capital improvement program,

2381
03:34:36,940 --> 03:34:43,080
some of the cuts there would, say, perhaps reduce expenditures out of the street fund or

2382
03:34:43,080 --> 03:34:47,600
the water fund. So all sides are touched in this, but you are correct that the general fund

2383
03:34:47,600 --> 03:34:57,660
would most likely see the most amount of savings, if you will, or at least, you know, instead

2384
03:34:57,660 --> 03:35:04,220
of 100, let's say we did it because there are a lot of the department and fund with a different

2385
03:35:04,220 --> 03:35:11,440
fund, different categories. So, 110 million, 915, so we'll have 120 million and 915, right?

2386
03:35:11,700 --> 03:35:16,260
If we don't put in general fund, we should have 10 million dollars somewhere in a book's increase.

2387
03:35:16,960 --> 03:35:25,040
It really, it really depends on where revenues land and where actual expenditures land at the end of the year.

2388
03:35:25,500 --> 03:35:31,000
And unfortunately, we will not know that until probably closer to September.

2389
03:35:31,920 --> 03:35:41,040
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.

2390
03:35:41,180 --> 03:35:45,100
So at that point, we'll have a much better sense of where we actually land it.

2391
03:35:45,100 --> 03:35:49,160
But you have 110 million dollars right now.

2392
03:35:49,220 --> 03:35:52,380
You saying that we're going to have a 10 million dollars in reduction.

2393
03:35:53,140 --> 03:35:56,120
So wouldn't that be 120 million at the end of the year?

2394
03:35:59,520 --> 03:36:01,860
Or if I can jump in here, this is Ryan.

2395
03:36:02,360 --> 03:36:09,020
I just like to probably hope to provide a little bit of clarity on this particular situation.

2396
03:36:09,740 --> 03:36:12,900
Mayor, I understand your point.

2397
03:36:12,900 --> 03:36:17,840
However, we're not looking at that as it's not additional revenue.

2398
03:36:18,040 --> 03:36:19,800
We're not receiving additional revenue.

2399
03:36:20,500 --> 03:36:23,420
We're simply not incurring additional expenditures.

2400
03:36:24,600 --> 03:36:28,980
And so our general fund reserve would likely stay in the same neighborhood

2401
03:36:28,980 --> 03:36:31,480
where we're at right now of $70 million.

2402
03:36:32,600 --> 03:36:38,700
Whereas if you were to spend those funds that Jeff and Art have conveyed,

2403
03:36:39,660 --> 03:36:47,360
Your general fund reserve would decline, you know, on the order of five, six, seven million dollars.

2404
03:36:47,920 --> 03:36:56,080
By not spending these funds, you have the opportunities to retain your existing reserve, but you're not receiving any additional revenue.

2405
03:36:56,520 --> 03:36:59,240
You're just saving money that you would have otherwise spent.

2406
03:37:02,420 --> 03:37:03,680
I'm lost here.

2407
03:37:09,890 --> 03:37:16,570
You're not spending this $10, $12 million that the budget office has laid out through

2408
03:37:16,570 --> 03:37:24,210
not spending it, you're saving the principle on your reserve fund that you have now.

2409
03:37:25,990 --> 03:37:32,210
It's not counting it as a revenue, and so you wouldn't be generating an addition.

2410
03:37:32,210 --> 03:37:38,110
Your reserves are not going to go from 110 million to 120 million through these reductions.

2411
03:37:38,490 --> 03:37:44,910
You're simply not going to be incurring additional expenditures on the $70 million reserve

2412
03:37:44,910 --> 03:37:46,090
that you have.

2413
03:37:46,610 --> 03:37:51,330
But from that $70 million, the $10 million that hasn't been taken out yet, that's what you're

2414
03:37:51,330 --> 03:37:51,510
saying.

2415
03:37:52,170 --> 03:37:52,430
Correct.

2416
03:37:53,570 --> 03:37:53,830
Correct.

2417
03:37:54,630 --> 03:37:55,270
Yes, that's correct.

2418
03:37:55,370 --> 03:38:02,050
So if we were to spend that money in the next two months, your general fund reserve would

2419
03:38:02,050 --> 03:38:07,330
decline as would, several of the other funds where those revenues would be coming from, or those

2420
03:38:07,330 --> 03:38:14,430
expenditures would be charged to. Whereas if we don't spend the funds, we're going to retain

2421
03:38:14,430 --> 03:38:21,430
that existing reserve. So it doesn't show any pure cut at all in anything for last 10 weeks.

2422
03:38:21,650 --> 03:38:23,490
That's what I'm looking for when I don't see it.

2423
03:38:25,740 --> 03:38:29,800
We're trying to convey a savings as much as

2424
03:38:29,800 --> 03:38:36,760
rather than, I guess, potential cuts, but we'll receive, we have a savings that we're going

2425
03:38:36,760 --> 03:38:41,560
to be receiving and preserving our general fund reserve through these proposed reductions.

2426
03:38:45,360 --> 03:38:50,600
All this still, we probably have to have another special meeting for this, any of this

2427
03:38:50,600 --> 03:38:55,480
number doesn't make sense to me. All right. There's any other consolation, any questions?

2428
03:38:55,480 --> 03:38:59,100
If it's not, we jump to the next item, which is for Kanna and Ramsey.

2429
03:39:05,630 --> 03:39:12,630
Our little mayor, members of City Council, the next item, was a at your direction on Monday.

2430
03:39:12,990 --> 03:39:20,790
You were looking for some clarity on what the City Council is electric utility does so far as the 5% discount that it provides.

2431
03:39:22,210 --> 03:39:25,130
Ramsey, Rob Dean, will be providing you some more detail.

2432
03:39:25,950 --> 03:39:29,610
And then E&I and Mr. Galucci will take any questions that you have.

2433
03:39:30,110 --> 03:39:30,670
Ramsey?

2434
03:39:43,860 --> 03:39:45,540
I guess Ramsey may have some technical issues.

2435
03:39:45,540 --> 03:39:54,640
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.

2436
03:39:55,140 --> 03:40:03,680
The utility was set up in 2003, essentially in response to some major issues, potential brownouts and so on.

2437
03:40:04,360 --> 03:40:11,360
The City Council directed staff to look into finding a suitable opportunity to get into the business.

2438
03:40:15,200 --> 03:40:24,780
We sponsored Assembly Bill 80 under which we were given the regulatory rights to enter into the utility business.

2439
03:40:24,780 --> 03:40:32,340
And subsequently we have bought into the Magnolia Power Plant in Burbank, along with five other cities.

2440
03:40:32,840 --> 03:40:33,560
Next slide, please.

2441
03:40:37,660 --> 03:40:41,680
So the Magnolia Power Plant is our major source of power, if you will.

2442
03:40:42,040 --> 03:40:49,460
It provides about 110 million kilowatt hours of power.

2443
03:40:49,880 --> 03:40:51,940
It has the availability to us.

2444
03:40:51,940 --> 03:40:58,660
Subsequently, we also signed up to get a small allocation from the Hoover Dam, known as the Boulder Canyon Project,

2445
03:40:59,420 --> 03:41:03,260
and finally we have two photovoltaic arrays at the corporate yard.

2446
03:41:05,020 --> 03:41:13,180
On location, we also just from the ISO market to make up for any significant peaks, especially during the summer months.

2447
03:41:13,860 --> 03:41:14,660
Next slide, please.

2448
03:41:16,580 --> 03:41:22,300
At this time, the utilities serves commercial accounts only.

2449
03:41:23,340 --> 03:41:26,700
We started small with about 20 other accounts in 2005.

2450
03:41:27,440 --> 03:41:30,600
Since then, we have grown to about 300 commercial accounts.

2451
03:41:31,060 --> 03:41:35,020
We serve, as I mentioned previously, all of our major city facilities.

2452
03:41:36,180 --> 03:41:38,540
We also serve in the commercial area.

2453
03:41:38,820 --> 03:41:41,400
We served small several lot of dealers.

2454
03:41:42,380 --> 03:41:43,540
We serve the school district.

2455
03:41:43,540 --> 03:41:48,660
We also serve several other small businesses within the city.

2456
03:41:50,040 --> 03:41:54,720
In response specifically to the questions that were raised on Monday evening,

2457
03:41:55,460 --> 03:41:59,580
looking at a data we found a one-fold year of data,

2458
03:41:59,860 --> 03:42:01,420
which was calendar year 2019.

2459
03:42:01,900 --> 03:42:05,480
So between January of 2019 through the end of that year,

2460
03:42:06,340 --> 03:42:10,660
the utility sold 66 million kilowatt hours.

2461
03:42:11,880 --> 03:42:26,000
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.

2462
03:42:26,860 --> 03:42:32,640
So really, what we sold into non-city customers is about 50 million kilowatt hours.

2463
03:42:34,760 --> 03:42:44,420
Again, going back to what I had mentioned, we have under our agreement with Edison, the enabling agreement that allows

2464
03:42:45,140 --> 03:42:48,020
cerido's electric utility to operate as a utility.

2465
03:42:48,600 --> 03:42:51,000
We have two conditions in that.

2466
03:42:51,000 --> 03:42:56,760
One is that we will serve a commercial load only at this time.

2467
03:42:56,760 --> 03:43:03,840
And the second is that we were kept at a maximum of 110 million kilowatt hours.

2468
03:43:05,700 --> 03:43:17,040
The model established at the outset by City Council was that the utility would serve as a business attraction and retention tool.

2469
03:43:17,040 --> 03:43:31,700
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.

2470
03:43:32,420 --> 03:43:40,560
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.

2471
03:43:40,560 --> 03:43:58,560
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.

2472
03:43:59,640 --> 03:44:00,640
Next slide, please.

2473
03:44:04,550 --> 03:44:11,010
There have been a few issues in terms of how this utility could grow and become more profitable.

2474
03:44:11,990 --> 03:44:19,630
staff has been looking at this since its time and commenced operation.

2475
03:44:21,690 --> 03:44:26,870
One of the things which I think Ryan mentioned earlier on in his presentation was talking

2476
03:44:26,870 --> 03:44:28,090
about the debt.

2477
03:44:29,050 --> 03:44:31,550
The utility business is very capital intensive.

2478
03:44:32,450 --> 03:44:41,130
The Magnolia Power Plant, as a was financed through a bond payment arrangement, Serito's

2479
03:44:41,130 --> 03:44:47,930
pays approximately 900,000 a year towards its responsibility in that regard.

2480
03:44:48,350 --> 03:44:52,110
That goes on through 2035-36,

2481
03:44:54,290 --> 03:44:57,090
and also Brian also mentioned that since the dissolution

2482
03:44:57,090 --> 03:44:59,950
of the agency approach.

2483
03:45:00,000 --> 03:45:26,060
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.

2484
03:45:27,900 --> 03:45:34,920
If you were to strictly look at a snapshot in terms of what a single year's revenue would

2485
03:45:34,920 --> 03:45:42,200
be towards the expenses, I'm happy to report that in the past few years the utility

2486
03:45:42,200 --> 03:45:50,300
of either being close to breaking even or even been in the black 2018-19 data, which is

2487
03:45:50,300 --> 03:45:59,600
complete and looked at shows that the utility was about 300,000 to the good, but that's

2488
03:45:59,600 --> 03:46:05,960
only the snapshot looking at what the expenses are towards the direct operation. It does

2489
03:46:05,960 --> 03:46:13,180
not account for the debt, the city, general fund has to receive in terms of interest and

2490
03:46:14,080 --> 03:46:21,710
principle itself. Moving on to the business, what can be done, how can it be

2491
03:46:21,710 --> 03:46:29,670
improved? There was a portion I want to touch upon. There are a few outstanding issues

2492
03:46:29,670 --> 03:46:36,350
that the utility can still be challenged by, and this is not something which we have

2493
03:46:37,590 --> 03:46:45,310
The regulatory positions, those are new mandates that have come down since the facility

2494
03:46:45,310 --> 03:46:46,810
or the utility started.

2495
03:46:47,450 --> 03:46:52,930
Magnolia, which is powered with natural gas, was the state of the out of that time,

2496
03:46:53,570 --> 03:46:56,290
shown to be clean burning fuel and so on.

2497
03:46:56,550 --> 03:47:02,990
But as Council is aware, it's a fossil fuel, and today's market conditions,

2498
03:47:02,990 --> 03:47:09,270
Those are that particular type of energy resources not looked on favorably.

2499
03:47:10,270 --> 03:47:14,630
Therefore, the utility is attracted to additional depositions of financial

2500
03:47:16,010 --> 03:47:18,790
depositions in the form of capital trade.

2501
03:47:19,170 --> 03:47:24,130
There's also a renewable component that the utility needs to

2502
03:47:24,130 --> 03:47:26,490
bring into its fold in terms of percentages.

2503
03:47:26,490 --> 03:47:33,350
So those are some issues that we really don't have control on.

2504
03:47:33,790 --> 03:47:39,690
Staff monitors all of the potential builds that are out there, but are being given the

2505
03:47:39,690 --> 03:47:46,990
size that we are really don't have too much in terms of being able to look at that and influence

2506
03:47:46,990 --> 03:47:49,490
that new builds that are coming about.

2507
03:47:49,490 --> 03:47:53,410
The second issue was the important one to look at, which is the market risk.

2508
03:47:54,170 --> 03:47:59,250
Given that the, the, the ceritos electric utility is largely dependent on

2509
03:47:59,250 --> 03:48:04,930
being Nolia, which is a natural gas-based power resource.

2510
03:48:05,790 --> 03:48:13,210
The problem we have is that we are at the market's machines, so far as natural gas prices

2511
03:48:13,210 --> 03:48:13,950
are concerned.

2512
03:48:13,950 --> 03:48:20,630
We have been lucky in the last two or three years where the gas prices have gone down significantly.

2513
03:48:22,270 --> 03:48:31,850
And therefore, our production costs in order to create electricity has been favorable in comparison to Edison or other utilities.

2514
03:48:33,110 --> 03:48:42,030
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.

2515
03:48:43,070 --> 03:48:47,850
However, there's no guarantees that gas prices are going to stay the way they are.

2516
03:48:48,790 --> 03:48:52,370
We have locked in gas prices for the next fiscal year.

2517
03:48:52,930 --> 03:49:02,730
We've got a really favorable number again so that votes well at least for fiscal year 2020-29-21.

2518
03:49:03,710 --> 03:49:10,290
The last item that we have, which is again something which is cost for concern, is the customer load.

2519
03:49:10,290 --> 03:49:19,190
We are, as I mentioned, allowed under our agreement that is in to serve as much as 110 million kilowatt hours.

2520
03:49:19,930 --> 03:49:29,050
However, at this time, you're selling, as you saw in the previous slides, some vehicles to 66 million kilowatt hours.

2521
03:49:30,170 --> 03:49:35,030
There is no guarantees that customers will stay with us just to get the 5% discount.

2522
03:49:35,030 --> 03:49:41,170
they may be able to go to other sources and get better discounts. It has happened in the past.

2523
03:49:42,170 --> 03:49:47,770
Citrus Community College was one large customer we had. They then ultimately consolidated

2524
03:49:47,770 --> 03:49:55,170
other community colleges and went and found power at a more attractive rate. So all that said

2525
03:49:55,170 --> 03:50:01,710
what ends up happening when we lose load is then we have more power than we can sell and the fixed

2526
03:50:01,710 --> 03:50:08,410
cost not change as you can realize. So therefore we are definitely as a disadvantage. So

2527
03:50:08,410 --> 03:50:15,310
these are three major issues that we'll try to control as best as we can, but as you

2528
03:50:15,310 --> 03:50:22,830
can realize this is not completely within ceritos' ability to control. Going out of the last slide,

2529
03:50:22,830 --> 03:50:30,910
This was really the whole question or the question that came, especially from Mayor Pro

2530
03:50:30,910 --> 03:50:31,210
Time.

2531
03:50:31,770 --> 03:50:33,290
So I'll spend a little bit of time on this.

2532
03:50:33,710 --> 03:50:40,730
The first column shows the sales that are achieved in the 2019 calendar year.

2533
03:50:40,770 --> 03:50:46,050
We sold approximately 50 million kilowatt hours to commercial customers.

2534
03:50:47,630 --> 03:50:56,670
balance of 16 million was used up in city facilities, and so from the head, limit that I

2535
03:50:56,670 --> 03:51:03,770
mentioned, 110 million, a 44 million went un-utilized. Now, it doesn't mean that we

2536
03:51:03,770 --> 03:51:09,470
produce this electricity and sent it back to the grid. What it means is that there was

2537
03:51:09,470 --> 03:51:11,710
that we could not utilize.

2538
03:51:13,470 --> 03:51:20,730
Now, the second column or the third column shows you the revenue, strictly using

2539
03:51:20,730 --> 03:51:28,250
Edison's Tata of Rates, and the commercial would have been 3 million, 863,000 dollars

2540
03:51:28,250 --> 03:51:28,870
approximately.

2541
03:51:30,510 --> 03:51:38,230
What we charge those 50 or those commercial customers is a little over 3.6 million dollars.

2542
03:51:38,230 --> 03:51:46,030
So consequently, to answer your question, the discount that was given to those customers was

2543
03:51:46,030 --> 03:51:55,090
100 and 93,000 approximately, I should mention that off this customer's significant portion

2544
03:51:55,090 --> 03:52:02,710
goes towards the school district, they utilized somewhere in the range of 15 to 16 million

2545
03:52:02,710 --> 03:52:13,370
and that translates to approximately a $45-50,000 savings just because they obtained power from the city of Syritus.

2546
03:52:15,330 --> 03:52:22,730
The city, at the outset, has established that its own accounts will not receive a discount,

2547
03:52:23,070 --> 03:52:28,050
and therefore you see in the second line, you see the 1.1 status same.

2548
03:52:28,830 --> 03:52:35,790
Now, the discussion was also, or the inquiry, so I should say, from Council was also about

2549
03:52:35,790 --> 03:52:40,570
residential load, going back to the enabling agreement with Edison,

2550
03:52:42,650 --> 03:52:44,990
the two important issues.

2551
03:52:45,310 --> 03:52:49,090
There, one was the limit to what we could sell, which was the 110 million.

2552
03:52:49,850 --> 03:53:00,410
The second issue was, at that time, what of the opinion that ceritos electric utility cannot serve residential load?

2553
03:53:00,990 --> 03:53:11,090
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.

2554
03:53:11,090 --> 03:53:19,450
And our recent discussions with Edison indicate that they are open to allowing us to serve residential load.

2555
03:53:20,650 --> 03:53:28,370
But the issue is that if City Council was to direct staff to open up the utility,

2556
03:53:28,830 --> 03:53:35,450
make it available to residents, given the average use that a typical household uses,

2557
03:53:35,450 --> 03:53:45,750
The 15,500 homes roughly would require as much as 170 million kilowatt hours.

2558
03:53:46,510 --> 03:53:47,710
We only have 44 million.

2559
03:53:48,290 --> 03:53:56,290
So at this time, we are now looking at options to increase that limit that was imposed on the city.

2560
03:53:56,290 --> 03:54:03,730
the 110 million if everything goes well and we are able to find a way to increase that

2561
03:54:03,730 --> 03:54:11,710
to 220 to 130 million kilowatt hours available every year. At that point it would be

2562
03:54:11,710 --> 03:54:16,410
a natural for us to then see Council approval to offer it to the entire city

2563
03:54:16,410 --> 03:54:23,310
population. However, if for several other reasons I won't get into a lot of detail

2564
03:54:23,310 --> 03:54:28,830
as you want me to, if that's not possible, then in the near future, once you have concluded

2565
03:54:28,830 --> 03:54:36,270
our research, our intent would be to come to you with a proposal or several proposals on

2566
03:54:36,270 --> 03:54:47,410
how to make this 44 million number available to count to residents. It could be based on several

2567
03:54:47,410 --> 03:54:52,750
parameters. It could be first come first. It could be based on age or income or a combination

2568
03:54:52,750 --> 03:55:02,510
there off. So that's in a nutshell kind of a response to what was your direction was to us.

2569
03:55:03,110 --> 03:55:08,670
Additionally, I should also add that in serving residential load, there are a couple other

2570
03:55:10,450 --> 03:55:17,610
cost factors that may come in and we can discuss that at a later time. I think it's on the next slide

2571
03:55:17,610 --> 03:55:20,150
If you could forward this slide please,

2572
03:55:22,160 --> 03:55:22,480
it's not.

2573
03:55:23,660 --> 03:55:28,360
So the additional costs could come from the third party

2574
03:55:28,360 --> 03:55:30,160
contract of use for billing.

2575
03:55:30,860 --> 03:55:33,320
At this time, they generated 300 bills a month.

2576
03:55:33,740 --> 03:55:38,080
If you would ask them to go up to 15,000, 10,000,

2577
03:55:38,100 --> 03:55:40,200
whatever the number is, you can imagine

2578
03:55:40,200 --> 03:55:42,160
there's going to be additional costs there.

2579
03:55:42,360 --> 03:55:44,540
We have already started discussing with them

2580
03:55:44,540 --> 03:55:48,900
on what that would be, or what a tier approach would be, for example,

2581
03:55:48,900 --> 03:55:51,640
because not everybody is going to sign up on day one.

2582
03:55:52,360 --> 03:55:54,960
The additional issues is that with our experience,

2583
03:55:55,140 --> 03:55:59,800
with the water utility, there is going to be a significant addition

2584
03:55:59,800 --> 03:56:04,060
in terms of customer service, in our questions about bills

2585
03:56:04,060 --> 03:56:05,800
and missing bills and so on.

2586
03:56:06,580 --> 03:56:10,520
So there will be additional potential costs there on.

2587
03:56:10,740 --> 03:56:14,880
So those are items which are not clearly defined at this time,

2588
03:56:15,200 --> 03:56:17,300
but we are looking to those as well.

2589
03:56:17,300 --> 03:56:24,580
And like I said, here's that 34 million or whatever the number is, is the only available energy that we have.

2590
03:56:25,160 --> 03:56:28,240
We will be coming back to you soon, have to be complete a research.

2591
03:56:29,240 --> 03:56:31,120
It concludes my comments on this item.

2592
03:56:31,500 --> 03:56:33,380
If you have any questions, I'll be happy to take.

2593
03:56:34,740 --> 03:56:37,320
Thank you, Kanap, for the extended report.

2594
03:56:38,260 --> 03:56:38,880
I have a question.

2595
03:56:39,540 --> 03:56:43,840
If not, you have power, project, and Bollerado, how much is we're getting it from age?

2596
03:56:43,940 --> 03:56:44,800
Do you have that number?

2597
03:56:47,040 --> 03:56:58,080
Yes, sir, the Magnolia power plants we take 4.2% of its output in the calendar year 2019.

2598
03:56:59,400 --> 03:57:02,780
What we do, I should give you a little more background.

2599
03:57:02,920 --> 03:57:09,000
What we do is on a daily base, we actually lay out on an hourly base.

2600
03:57:09,320 --> 03:57:11,780
What our taste will come from Magnolia power plant.

2601
03:57:12,500 --> 03:57:14,480
So it's a pretty extensive operation.

2602
03:57:15,200 --> 03:57:21,580
So the evening hours, the night hours when the load of the requirement is not as much,

2603
03:57:21,840 --> 03:57:27,760
we can go down to as low as 7, 7,000 kilowatt hours.

2604
03:57:28,700 --> 03:57:31,240
And then that ramps up during the day.

2605
03:57:31,740 --> 03:57:36,660
There's again an urban flow during winter months, again, some months or much higher and so on.

2606
03:57:37,200 --> 03:57:41,200
So if I was to make, if you're a number, it'll be somewhere in the range of about 60

2607
03:57:41,200 --> 03:57:43,040
million kilowatt hours.

2608
03:57:48,200 --> 03:57:52,760
The Boulder Canyon or the Hoover project that gives us some

2609
03:57:52,760 --> 03:57:59,240
very close to about 7 million. Again, that's predicated on the water flows and so on

2610
03:57:59,240 --> 03:58:06,220
so forth, but it's a much less expensive resource and we are looking for additional

2611
03:58:06,220 --> 03:58:10,720
opportunities where we can get more power from that resource.

2612
03:58:11,600 --> 03:58:18,460
The third component or the third resource that we tap, which we have to tap on some

2613
03:58:18,460 --> 03:58:27,540
of months, especially the market, especially during the 11 AM to 3 PM time frame when you

2614
03:58:27,540 --> 03:58:35,220
have a spike, that's when we go into the market and by short strips of power if you will

2615
03:58:35,220 --> 03:58:39,580
to meet the demand. What is the pricing difference between

2616
03:58:39,580 --> 03:58:43,100
Magnolia power power? What's the price of a Magnolia and

2617
03:58:43,100 --> 03:58:50,380
formula over? Magnolia power plant at our, for example, now with,

2618
03:58:50,380 --> 03:58:57,040
with our TNF to $4 per unit gas cost, our all-in cost,

2619
03:58:57,180 --> 03:59:01,300
is somewhere in the range of about $48 to $50 per

2620
03:59:03,740 --> 03:59:08,700
megawadar if you were to compare that to Boulder Canyon that will be somewhere that I

2621
03:59:08,700 --> 03:59:15,780
range of about 30. So it's a significant saving just based on the gas prices as they are

2622
03:59:15,780 --> 03:59:22,320
today. Now that can change it is a commodity that is traded in the market and though we

2623
03:59:22,320 --> 03:59:29,880
try to buy strips of power of gas, we still have some little bit that we have to make up on a daily

2624
03:59:31,460 --> 03:59:40,380
And this powers are also required by state, right, to be able to accept a model for power.

2625
03:59:40,720 --> 03:59:42,520
Was this was required by state?

2626
03:59:43,960 --> 03:59:47,780
The states in position I mentioned briefly was the renewable power.

2627
03:59:48,580 --> 03:59:52,680
When we started the utility, renewable power was something that was being discussed.

2628
03:59:53,860 --> 03:59:58,320
By 2007, eight, it started becoming a mandatory requirement.

2629
03:59:58,320 --> 03:59:59,960
Initially the

2630
04:00:00,000 --> 04:00:09,840
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.

2631
04:00:10,460 --> 04:00:20,320
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.

2632
04:00:20,320 --> 04:00:33,540
So, Magnolia is not a noble power, neither is Bola Canyon, so, consequently, Serritos has that big burden to consider as well.

2633
04:00:34,280 --> 04:00:38,740
So, what we have to look at wind and solar or what?

2634
04:00:39,260 --> 04:00:44,360
Wind, solar, small hydros, there are a few other geothermal.

2635
04:00:45,020 --> 04:00:51,840
So those are the kind of technologies, there are new technologies, there's storage that's coming

2636
04:00:51,840 --> 04:00:57,560
up, so batteries are becoming better, so all of these technologies are improving on a daily

2637
04:00:57,560 --> 04:00:58,320
basis.

2638
04:00:59,740 --> 04:01:04,200
So sooner or later, serritos will be compelled to enter into those markets as well.

2639
04:01:05,220 --> 04:01:09,700
And on this commercial business, I know the school district is the largest one probably

2640
04:01:09,700 --> 04:01:15,840
customer. Do we have a contract with all these schools and other commercial that how long we need to provide

2641
04:01:15,840 --> 04:01:21,520
or is it month to month or they do decide tomorrow or they want to continue with us or that

2642
04:01:21,520 --> 04:01:28,420
has works? We have them all on the contract and though there is a contract in place,

2643
04:01:29,460 --> 04:01:38,320
I think within a 60 day notice, a customer can leave. Conversely, the city also can give a similar notice

2644
04:01:38,320 --> 04:01:42,020
in case it decides for some reason that it does not

2645
04:01:42,020 --> 04:01:42,900
want to serve a customer.

2646
04:01:44,040 --> 04:01:46,140
So there are termination classes.

2647
04:01:47,280 --> 04:01:51,880
The community college that I mentioned took that option

2648
04:01:51,880 --> 04:01:54,720
when they came upon a better opportunity,

2649
04:01:55,160 --> 04:01:59,800
and they left to join a different consortium.

2650
04:02:01,000 --> 04:02:01,540
Thank you.

2651
04:02:01,540 --> 04:02:02,780
Thank you, kind of, for the report.

2652
04:02:04,200 --> 04:02:07,040
And all right, at this time, the council has a question.

2653
04:02:07,040 --> 04:02:09,820
I'll start with a councilman here.

2654
04:02:10,540 --> 04:02:13,340
Well, my question is, do we need a break?

2655
04:02:14,200 --> 04:02:17,900
Yeah, it's almost four hours meeting right now.

2656
04:02:19,500 --> 04:02:20,220
Four hours.

2657
04:02:21,780 --> 04:02:22,280
I don't know.

2658
04:02:22,560 --> 04:02:25,880
Do we want to put the next council agenda then?

2659
04:02:26,400 --> 04:02:26,580
Yeah.

2660
04:02:26,680 --> 04:02:28,660
Or do we want to put it in this item and let's say,

2661
04:02:29,700 --> 04:02:31,780
do we want to continue councilman here?

2662
04:02:31,840 --> 04:02:33,800
Or should we put it for the next council meeting?

2663
04:02:36,200 --> 04:02:37,360
Well, I just need a break.

2664
04:02:37,900 --> 04:02:42,660
We just need to make, okay, all right, should we want to take now or just finish with

2665
04:02:42,660 --> 04:02:43,740
Kana's questions?

2666
04:02:44,980 --> 04:02:46,920
Well, okay, finish Kana's a question.

2667
04:02:47,800 --> 04:02:48,020
All right.

2668
04:02:48,020 --> 04:02:49,240
So do you have any questions for Kana?

2669
04:02:49,940 --> 04:02:51,260
Yeah, thank you.

2670
04:02:52,060 --> 04:02:52,100
Okay.

2671
04:02:52,580 --> 04:02:54,520
Council Member Yoke Yamma?

2672
04:02:57,020 --> 04:02:57,860
No, thank you.

2673
04:02:59,020 --> 04:03:00,140
Mayor Portem Wolfe.

2674
04:03:01,060 --> 04:03:03,320
Yes, I'll make this quick, so we can take a break.

2675
04:03:04,080 --> 04:03:07,940
I would just recommend to my council colleagues that if we are going to move forward.

2676
04:03:07,940 --> 04:03:13,020
First off, I appreciate the report that we're going to be possibly able to serve our

2677
04:03:13,020 --> 04:03:17,740
residents and not just our business, so that looks like there's an increase in revenue

2678
04:03:17,740 --> 04:03:21,300
for us with all that available power that's not being used.

2679
04:03:21,320 --> 04:03:24,120
It's nice to be able to now apply to our residents.

2680
04:03:24,960 --> 04:03:28,640
I would just recommend that we wouldn't increase our supply.

2681
04:03:29,900 --> 04:03:32,980
This power supply has been a source subject for us for years.

2682
04:03:33,540 --> 04:03:37,180
So I would just recommend moving forward with what we have in providing to the residents

2683
04:03:37,180 --> 04:03:43,380
with what we have left and going along the same lines with Mayor saying that, you know, we

2684
04:03:43,380 --> 04:03:48,680
may have business accounts now, but because of this COVID and anything moving forward, we

2685
04:03:48,680 --> 04:03:53,720
may lose those accounts and so there will be more power to provide to our residents.

2686
04:03:54,320 --> 04:03:57,920
So I would just recommend staying with where we're at and not increasing our load and paying

2687
04:03:57,920 --> 04:04:01,240
more money and the positive you stuck with that moving in the future.

2688
04:04:01,580 --> 04:04:01,780
Thank you.

2689
04:04:01,900 --> 04:04:02,360
That's all.

2690
04:04:03,000 --> 04:04:03,560
Thank you.

2691
04:04:03,560 --> 04:04:10,580
All right. So, with that, can we take maybe 10 minutes break, 5 minutes break?

2692
04:04:12,550 --> 04:04:12,750
Everyone?

2693
04:04:18,480 --> 04:04:19,360
Thank you.

2694
04:04:19,500 --> 04:04:20,120
Thank you.

2695
04:14:02,110 --> 04:14:03,330
You can proceed with the meeting.

2696
04:14:08,750 --> 04:14:09,850
Okay, I will very speak to you.

2697
04:14:10,090 --> 04:14:10,090
Yes,

2698
04:14:18,320 --> 04:14:19,840
we can take a roll call.

2699
04:14:20,720 --> 04:14:21,640
I don't say everybody.

2700
04:14:22,380 --> 04:14:27,080
Yeah, I don't know what in my screen I don't say anybody's picture.

2701
04:14:31,120 --> 04:14:32,060
Okay, one moment please.

2702
04:15:45,710 --> 04:16:02,330
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.

2703
04:16:03,730 --> 04:16:08,870
You are based on the time and fact the staff may need to come back tomorrow for work.

2704
04:16:09,690 --> 04:16:15,130
I would actually make a motion to continue these items to the next council meeting since

2705
04:16:15,130 --> 04:16:16,830
this is for information only.

2706
04:16:17,050 --> 04:16:19,410
No action needs to be taken on these.

2707
04:16:21,230 --> 04:16:23,030
There's a second on that.

2708
04:16:26,360 --> 04:16:27,100
All right.

2709
04:16:28,420 --> 04:16:33,740
So, we don't need roll call on this to put this idea for next council meeting or what do we.

2710
04:16:34,160 --> 04:16:36,580
I've shipped mayor I can take a quick roll call.

2711
04:16:38,240 --> 04:16:39,140
Council member who?

2712
04:16:43,480 --> 04:16:45,900
Council member who can I have you unmute your microphone?

2713
04:16:46,560 --> 04:16:48,560
Thank you.

2714
04:16:48,600 --> 04:16:48,860
Okay.

2715
04:16:50,100 --> 04:16:51,220
The volume is there.

2716
04:16:53,960 --> 04:16:55,280
Council member who?

2717
04:16:55,740 --> 04:16:56,620
Yes, I'm here.

2718
04:16:56,820 --> 04:16:57,480
Can you hear me?

2719
04:16:57,820 --> 04:17:02,360
Yes, there was a motion in a second to table these items

2720
04:17:02,360 --> 04:17:04,660
or continue these items to the next meeting?

2721
04:17:05,080 --> 04:17:05,920
Next regular meeting?

2722
04:17:06,500 --> 04:17:09,220
Yes, I actually second the motion.

2723
04:17:12,000 --> 04:17:13,400
And Yoko Yamaha?

2724
04:17:15,920 --> 04:17:16,280
Yes.

2725
04:17:18,020 --> 04:17:18,400
Vote.

2726
04:17:21,370 --> 04:17:21,730
So, Lunky?

2727
04:17:22,790 --> 04:17:23,130
Yes.

2728
04:17:23,630 --> 04:17:25,250
The motion passes for zero.

2729
04:17:26,310 --> 04:17:26,350
OK.

2730
04:17:32,690 --> 04:17:35,610
So, I have to put the public to speak on the next item, too.

2731
04:17:35,750 --> 04:17:38,350
Right, we're going to continue on that.

2732
04:17:39,490 --> 04:17:42,070
I could defer to the city attorney, but at this time,

2733
04:17:42,070 --> 04:17:46,210
We have one member of the public who has raised their hand to speak.

2734
04:17:47,170 --> 04:17:49,750
Okay, if we just want to let's go and let them speak.

2735
04:17:50,510 --> 04:17:52,450
So I will open it at this time.

2736
04:17:52,530 --> 04:17:56,730
I will open up the public comments on the item 98.

2737
04:18:00,080 --> 04:18:02,540
Are there any members of the public who wish to make public comments?

2738
04:18:03,060 --> 04:18:07,020
This item will be continued to the next regular meeting if you would like to defer your comments

2739
04:18:07,020 --> 04:18:08,140
until that point.

2740
04:18:10,640 --> 04:18:11,900
Mr. Mayor, we have one speaker.

2741
04:18:13,040 --> 04:18:17,240
Did you look asca please unmute your microphone and begin your comments?

2742
04:18:24,960 --> 04:18:26,560
Oh, so is this the

2743
04:18:26,560 --> 04:18:30,620
Are you ending the meeting now or?

2744
04:18:30,620 --> 04:18:32,320
It'll be continued until next week.

2745
04:18:32,740 --> 04:18:33,780
Next council meeting.

2746
04:18:34,060 --> 04:18:34,300
Okay.

2747
04:18:34,540 --> 04:18:36,400
But I just have a question.

2748
04:18:37,040 --> 04:18:37,620
Okay.

2749
04:18:39,860 --> 04:18:40,420
Go ahead.

2750
04:18:41,420 --> 04:18:41,420
Uh,

2751
04:18:45,730 --> 04:18:46,130
never mind.

2752
04:18:46,410 --> 04:18:46,810
I'm sorry.

2753
04:18:47,050 --> 04:18:47,570
I'm sorry.

2754
04:18:48,010 --> 04:18:50,050
I just asked it in the next one.

2755
04:18:50,970 --> 04:18:51,490
I'm sorry.

2756
04:18:52,350 --> 04:18:52,850
Okay.

2757
04:18:53,330 --> 04:18:53,790
Thank you.

2758
04:18:53,790 --> 04:18:56,550
Thank you very much.

2759
04:18:57,290 --> 04:18:58,190
Thank you.

2760
04:18:58,550 --> 04:19:00,630
We'll close the public hearing on this item.

2761
04:19:00,790 --> 04:19:02,510
I need.

2762
04:19:02,990 --> 04:19:08,070
We have counsel comments but in light of the time and everything we'll

2763
04:19:08,070 --> 04:19:10,530
postpone this until the next meeting.

2764
04:19:12,490 --> 04:19:15,630
And this time I will adjourn the meeting then.

2765
04:19:16,570 --> 04:19:17,950
Thank you all very much. Good night.