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We're ready. Okay, we're going to go ahead and convene the city council meeting of Jan. June 18. Can we have a? We'll do the pleasure legions first. Angelica. Hands over your heart. Ready to begin. The legal leaders to the fly of the United States of America and to the Republic for which it's

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and one nation under God of the God.

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The Indivisible with liberty and justice for all of them.

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Can we do the roll call, please?

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Council Member Murtons.

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Present.

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Council Member Music.

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Present.

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Council Member Balacco.

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Present.

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Mayor Pro Tem Reade.

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Present.

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Mayor Peabody.

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Present.

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Can I have a motion to approve of the final agenda?

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So moved.

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Mr. Balacco.

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Second Kimberly, all in favor.

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I am.

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Angelica, you have something that you want to say.

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That is right.

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Yes.

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Mayor and Councillor, there is an addendum to the agenda.

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Consent Item 4 N relating to COVID-19 City Hall reopening policies and procedures.

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Additional item to Consent Item 4C was added relating to Washington Street and Fredwearing

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Drive, triple left turn project right away purchase.

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the notice and material of the Addendum were placed on the city's website and also the three locations throughout the city. Thank you.

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Okay, before we get to the public comments and it has a couple.

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I just want to quickly bring you up to date on the meeting of the mayors with the county supervisor today.

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The COVID is increasing.

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The governor just shortly goes said that masks are now mandatory in the state and we need

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the cooperation of everybody.

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Our city has been very good as far as the residents.

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We still have 16 cases and no deaths, but we're having problems in the valley, even though

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the nine cities all agreed to have the same policies, with enforcing the mask issue.

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And it is a serious problem in our city, CVS, had told us that they weren't going to enforce it.

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In the city of Lakinta Home Depot said that we have some restaurants in Palm Desert that are breaking all the rules

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as far as massive concerns. So in this meeting this morning with the supervisor, we asked everybody to get on board and

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in their cities enforce the policy because it is a problem and it's a very

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confrontational problem unfortunately. Right now hospitals are 63% occupied

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with all patients and let me clarify that's all patients not just COVID patients

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so we're still okay there but we we definitely have to watch it very closely so

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again I will ask our residents to continue doing what they're doing they've

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done a great job so far. I would ask the council at some point to support what will

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probably be a regional policy regarding not only the mass but the distancing because

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it is a problem and we're trying to get everybody together on it so that it will probably

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come back where we ask for your support on a regional policy, regional policy being the

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fourth district. With that, we'll go to public comments. Anna, I think you have a couple.

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The public comment is from Brad Anderson and his comments stated that the column in number for the Zoom meeting should be a local number and that the verbal comment, verbal comments should be allowed rather than written public comments submitted prior to the meeting.

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I will also take care of the one for the consent calendar and that is for item 4F regarding the nepotism policy.

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He requested the council not adopt the revisions to the nepotism policy as it removes the,

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in quote, no person shall be employed in a position directly supervised by a relative nor

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members of the immediate family being employed in the same department language.

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And of course, all of these public comments in their entirety were passed on to Council this morning.

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Thank you.

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Thank you.

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And we'll go to the consent calendar, and it's all met as listed on the consent calendar.

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Considered to be routine, it will be passed by one vote.

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There will be no discussion of these items, unless the council member or member of the public

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request specific items be discussed separately.

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Items removed from the consent calendar will be heard immediately.

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We do not have any public comments other than what Anna just read.

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So I would ask, is there any item that one of the council members wants to pull?

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Four F, please.

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Four F. Okay.

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Any others?

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No.

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Okay.

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Okay, then let's, we'll vote on A through,

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vote on A through M except F.

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Can I have a motion, please?

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So I'm moved.

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Second?

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Second.

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All in favor?

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Hi.

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All the five to nothing, and Ted, you have item F.

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The only thing I'd like to ask consideration

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from my fellow council members is to add probably as a separate policy,

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but within the policy of the city that the prohibition for employment or serving even in a volunteer capacity of a committee member or a commissioner would apply the same as it does to a relative of a council member.

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In other words, a relative of a council member should not be able to serve as a committee member or a commissioner if the council member.

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Okay. I see what you're saying. So I would just like to extend the prohibition,

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if you will, of serving, to include relatives of council members serving on committees and commissions.

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Okay. But if there isn't one today, but there is one in November, are you saying that

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that person, even though they might be appointed today, would have to withdraw in November?

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I'm not saying, I'm not sure that I'm saying that we have to the city attorney, although

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it would seem to me that just as a matter of routine and course that if you are a relative

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of a council member you would not serve on a committee or a commission.

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A relative would that assume you're talking that could be a spouse?

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Yes.

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Okay, and you're talking because there's relatives and there's spouses and as it's defined in our policy now

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It's it goes through a number of degrees of

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That's that's what I'm talking about

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Jeff

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So the issue that's been identified is whether we want to apply it only

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Prospectively or retroactively in other words if we have a commissioner say on the planning commission

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In their immediate family member gets elected in November

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or how are we going to deal with that situation?

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And there are a couple of different options.

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One is you could say the commissioner

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would need to resign.

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You could also have it only apply prospectively

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in the future so that commissioner could serve

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out their term and have it only apply to new appointments.

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So that's within the council's discretion.

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Opinions, Dana, I got an opinion.

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Well yeah, I wouldn't give them the option.

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If we say they're supposed to resign and they don't resign and we've got to take them to the court and all of that stuff,

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why don't we just say it terminates if a relative has to find in our policy becomes a member of the council?

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Is that covers?

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You could be that.

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And what would that be again?

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It would basically provide for automatic termination of the commissioner's appointment upon

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a election of one of their means.

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That would probably be more appropriate.

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Assuming office.

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Assuming office.

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So does that have to be a motion or I guess it would have to be a motion then to add that

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to correct.

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I think it's within the general purview of this agenda item so you could do that today and

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Can you give direction to staff to add that language to this policy?

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I would make that motion.

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If we can, for Claire.

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Would that be in this section, this is for the personnel manual.

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So I'm wondering if this should apply to this separate nepotism,

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have separate nepotism language perhaps in the council policy manual,

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not the employee personnel manual.

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That'd be a better place for it.

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That's what I was thinking in the first place.

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So I would move that it be placed into the council manual.

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Mr. Burns, can we ask them to come back at the next meeting?

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I think that's a good idea, Data.

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I'm not sure why, but yeah.

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Yeah, that's not a bad idea.

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Bring the policy back.

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We've got to adopt this one for the personnel rules, if you wish, and bring back a separate one

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for the council policy book.

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Correct, so we'll just approve what this one is and bring it back in July.

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Wonderful.

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Is everybody okay with that?

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Yes.

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Okay.

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Then I have a question.

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You have a question.

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I just want, and it's not regarding item F.

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I'm so sorry to do this.

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I may have misheard when the motion was made for consent.

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Was it for M like in Michael or was it for N like in Nancy?

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It's for the whole, it's for all of them.

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For all of them so N like in Nancy.

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Thank you very much.

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I unfortunately don't have N in my book.

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No, we just added it.

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That's what she added.

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Okay.

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Okay, so we'll just, for today, we'll just vote on F as it is and we'll bring it back on the 23rd of July for the other.

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Move approval.

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Second?

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Okay, all in favor?

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Aye.

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Five to nothing.

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Okay, we will move to general business and mending the Indian Wells Municipal Code relating to provisions to update and designate additional purpose and procedures to the City Planning Commission.

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It was going to deal with that.

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Thank you, Mr. Mayor.

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Mr. Counsel, I'll take a lead on this and allow the city attorney, Ms. Abelot and Mr.

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Berg answer any questions you may have.

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The council is aware that we have a planning commission and an architect landscape committee.

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And unfortunately over the years, the ALC, as we call it, has seen a reduction in meetings

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or a need to meet.

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And so we are recommending in order to provide efficiencies as well as, you know, when applicants

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We can supply for permits now, we can try to expedite their process, is combine the ALC with the planning commission.

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We think it's much more efficient for operations, staff time, and it shows that we are a business friendly community, so

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we are recommending the combination of the ALC with the planning commission, and we're recommending that that body be a member of seven body.

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And so what we'll be doing is two existing ALC members who are not terming out will

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roll over to the planning commission and that'll fill six of the seven positions that

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are full.

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There's another report after this, talking about a seventh position.

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In addition, because we do think it's important that there is some review of items, we're also

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performing what's called a design review committee.

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This body will be responsible for working with the community development director.

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and at times there are going to be items that you know the director may have

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administrative approval on but we'll need a subcommittee of the planning

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commission that we're called the design review committee to review those

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decisions before they are administratively approved. And so we're asking for your

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introduction of the ordinance and move forward as at this time. Okay no public

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comments we have one.

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Language regarding wall fence planter fountain and

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The similar architectural amenity in the proposed ordinance is unclear and she has concerned

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these remodeled changes are now going to be administratively reviewed rather than by

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the design review committee.

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Thank you.

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Now, City Council, comments?

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Yes.

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Go ahead.

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I think this is the right place to do this.

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I would like to ask fellow council members to consider adding for one year and eighth position

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to the Planning Commission.

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And the reason for that is I've talked with the city manager and as well aware we're embarking on a general plan amendment, a significant general plan amendment process.

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And Mr. Peabody and I in interviewing the applicants for the planning commission, we had one position open but we identified two people who have extraordinary qualifications.

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And in talking with the city manager, he believes that there is an advantage to the staff and the city through the process of the general plan amendment to have that eighth person on.

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So what I would like to suggest is that we add one person to the planning commission for one year, and then at the end of that year, they would drop back to the five.

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Okay.

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Let me add to that, when we interviewed them and Dana, I think you remember, we were going

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to take the two women from the architectural committee.

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When Ted and I went through interviewing these people, these two particular gentlemen have

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an expertise that the next council is going to need badly, both not only in the general

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plan but housing.

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And one of them is an expert in housing and the other one is definitely an expert in general

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plan.

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So, Ted and I thought for the purposes of which are going to go through the next few years on those things which are critically important to the city that it would be very wise to have these two people that not only would they be in the committee, they also could be a sounding board for you all on what the plan is by the council.

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So, that's why that's another reason why we recommend it.

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So I would like to make that motion.

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Okay, and do I have a second, second by Richard, all in favor?

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Aye.

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Aye.

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Okay, so that takes care of that once it will move to item B.

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Right, just be sure, Angelica, you got the motion was to approve the item with the addition.

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Right, and then we'll move to item B which is annual appointments to commission committees

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and board.

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But is anybody going to know who's going to speak, Chris, on this issue?

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Hi, I am.

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You are.

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Okay, Angelica.

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So, good afternoon, Mayor and Council.

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Before the-

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The City Council is the annual appointments to the six vacancies to the various committees, and also the reappointment of five existing members with one term remaining as outlined in your staff report. The vacancies and reappointments are for two years beginning on July 1st, 2020 and ending June 30th of 2022. Staff received a total of 18 applications from interested candidates. The Council interviewed these candidates and reviewed all applications and made the recommendations as

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outlined in your staff report. Staff recommends council reappoint the five committee members

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with one term remaining on their service and also Councillor interview, I'm sorry, and

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Councillor interview at how committees recommends the council appointments to the residents

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as outlined in your staff report to serve on the various commissions and committees and I am

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available for any questions.

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Okay, do I, I don't have any public comments?

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No.

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I just want to thank everybody who submitted their applications and it was really a tough

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decision on all accounts and I think that who we have selected are going to be positive

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for our community or city so thanks to everybody.

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Anybody else have a comment, Dana?

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No, I know that everyone did a lot of work.

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Okay, Richard, any comments?

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Nope.

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Dead?

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Oh.

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Can I have a motion?

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So moved.

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Okay, second.

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Second.

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Richard, all in favor?

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Aye.

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Aye.

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Okay, so we will move on to the next item which is item C.

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Indian Wells, Gulf Resort, Annual Plan.

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Steve, why don't you come up and...

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Or something that you're going to put first.

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I'm going to present first, if I may.

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Thank you, Mr. Mayor, members of the City Council.

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So the format for this item will be that both Kevin and I

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will be providing you with a presentation

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on the operations, finances, and next steps

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with C-Rose and the General Manager of the Indian Wells

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Gulf Resort available for your more detailed questions.

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First, let me start off by saying that for the last several months, both your city staff

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and others have been putting a lot of effort into better understanding the operations at

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the Gulf Resort and working to see how the impact of COVID will have on these operations.

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I want to thank Steve Rose and his team for all their extra work and also Kevin McCarty

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and Peter Castro for their work as well.

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The COVID has impacted operations in some of our expectations for our finances and

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And that will be one of the focuses of today.

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Before I have Mr. McCartney come back to talk about the finances, I do want to talk about

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some of the overall discussions we've been having these last several months and some

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of those outcomes.

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First is, I already shared, we've had a better understanding of the operations and the finances

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at the golf resort.

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And it's our hope that with this additional work that we've been putting forth, we'll be able

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to hopefully provide better service to our residents as well as respond to council questions.

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and other inquiries on the operations of the facility.

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During this time, we've developed new more detailed financial reports.

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We've allocated payroll that we believe to the various departments where they should be reflected,

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as well as allocation of building maintenance and administration as well.

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As you recall, at our last meeting, it was suggested that City Council members submit some questions

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to be, you know, responded to by both the golf resort as well as city staff and those

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questions have been provided to each of you in more detail as well as been made available

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to the public should they wish to get received copies of those.

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One of the items we do want to have discussion with briefly with you is I have been asked

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about the golf resort rather is a amenity or a business and I would argue that it's combination.

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It's a hybrid.

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It's both.

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And what I mean by that is the facility as we are quite aware operates is our community center

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We have special events there, but it's also a recreational facility where folks that are enjoy golf and other activities

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So I think that we realize that it is a community amenity, but at the same time it is a business

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Both the restaurant, banquet facilities and the golf operations are made up to generate revenues to help offset the cost of operation at facility

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as a city of enterprise.

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One of the discussions has been brought up as regards to the golf benefit that's provided.

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The discount on golf that is provided as a quality life amenity here in Indian Wells.

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I think of the $2.5 million, $1.6 million in potential subsidies,

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how has been termed in the past, has been provided to the golf operations.

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And from a staff perspective, that is a policy decision of the City Council.

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And as long as the City Council wishes to treat it as that initial amenity,

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we will continue to provide that as a financial support to the golf resort.

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And do you mind that it's not actually Trune's responsibility to make up that difference?

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It is a decision of the City to provide this benefit.

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Trune and their operations and city's expectation is we wish to start seeing the facility operate

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where it pays for its day-to-day operations and the capital expenditures.

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And we believe that we, you know, even in these tough times with COVID,

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it allowed us the opportunity to refocus energies and efforts to see

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how we can best make that a reality.

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Moving forward, there's going to be a lot of different recommendations in that.

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One of those is there is a desperately a need to look at

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review the management agreement between the city and our operator.

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If you recall the management agreement was put in place or redevelopment times and during

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redevelopment times money was a little bit more flush.

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And it wasn't a requirement of the city to have the general fund pick up that tab.

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So I think that that's going to be one of the things a focus over the next several months

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is how we can best review the management agreement, start making it where performance measures

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and goals are more in line with a business operation being profitable.

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As we move forward, if I bring up a power, I just want to talk to you about the steps

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we're going to be taking moving forward and there are several of those.

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So here are the steps that we're going to be doing taking moving forward.

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First, U.S.

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City Council will be receiving a month review of the budget and assumptions, okay?

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So monthly, you get a financial report from the golf resort, which is funneled through

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city staff.

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We'll make sure that in that, we'll be making a review of those assumptions.

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There's about a half million dollars of capital replacement plan for the coming year.

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We wish a city staff to help manage that a little bit better.

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And so we're going to be working closely with Trune that replacement only occurs for those

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necessary items that are needed in order to help try and reduce our capital expenditures

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for the year.

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Staffing increases that are presented in the budgets are actually not increased.

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See me, the staffing levels as presented in the budget is what our expectations are.

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and any additional staff and moving forward, we wish to have true and provide us

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off-study revenue composed before being approved. So that way we are able to

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help control our labor costs. We do need to bring back for discussion of the

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future meeting perhaps, a couple of items. First is valley parking. During COVID, as

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you can imagine, I'm sure you, like I don't want to have strangers getting into my

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vehicle who may be exposed to COVID or getting from vehicle to vehicle. So at

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At this time, we are not planning or budding for valley parking.

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Once we know more about what's going on with COVID,

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and when we find an opportunity to bring valley back,

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we will do so.

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But we're also going to look at the opportunity

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of rather than us staffing it,

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if it makes sense to have an outside company do that as well.

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So we'll provide you options in the future.

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Unemployment insurance, as you're quite aware,

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many folks are under receiving unemployment payments.

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We are anticipating that as COVID is expiring, as people are going back to work, it has been

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typical that the state comes back to businesses and says, okay, now we need to increase your

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unemployment rates in order to help re-appline the account.

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And so there was about $80,000 of unemployment insurance budgeted for, staff made the recommendation

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to remove that $80,000 because we don't know it will be more or less, and we want to bring

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it back to you so you can make that decision when you receive that information.

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Also staff is going to be looking at ways we can reduce our fixed cost over at the facility.

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One of which is the Energy Efficiency Study that you have set as a priority and we'll be

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looking at that for the coming year.

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And we will be working with Trune to provide clear strategies to help improve the cost of

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sales of items.

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Next is we want to make sure we complete one of your city council strategic planning goals

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which is the development of a master plan which we will do the RFP over this summer

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and hope to be given the work on the master plan in the fall.

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We want to look at this as an opportunity to improve guest experience,

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increase golf rounds, and covers at the restaurant.

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Staff, including myself, thinks is a very important project to move forward on

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because this document will assist the city in developing better management guidelines

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and performance measures for our true and contract.

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And I say true and concrete, it's really the management agreement.

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True just happens to be the consultant on board for that.

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That'll include a review of cost of sales, percent of payroll, financial return to each department.

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In addition, we'll be examining operational efficiencies and staffing in each department.

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We will conduct site evaluation and utilization of existing facilities and future needs.

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See how we can maximize the property and maximize opportunities for revenues.

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provide recommended revisions to the management agreements and what's important is that we want to make sure that include the golf committee as part of this process.

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We have one of this golf committee to help with the overall experience for golfers and they're going to have a valuable opportunity to be a part of this.

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But most importantly, we want to make sure our residents, hotels and visitors participate and provide feedback into this process.

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Next

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slide, I want to show this to the final one is a discussion about the marketing plan.

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City staff, the golf course operator Trune, as well as the CVB, which is a Greater Palm Springs

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Convention Visitors Bureau, has been meeting and having a discussion.

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We met earlier this week and have developed some strategies to help increase and hopefully

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provide more people into our hotels, but also and refocus the CVB's efforts to help bring

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golfers also to the golf resort. Their focus has been really on the hotels, but we want

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to try and find opportunities that we are bringing not just patrons to our hotels, but

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also patrons to our golf course. What we found was very interesting in the discussion

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is based on a survey, the CBB has data that says that currently 70% of people want to travel

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locally this calendar year. Okay, and they're willing to do up to a seven hour drive.

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And so the marketing efforts of the CVB, which we'll coincide with that of our marketing

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00:26:44,050 --> 00:26:49,410
efforts as a city, and as the golfers will work a collaboration, try and focus on that

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market as well.

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Because we think that there's a great opportunity to bring those folks here.

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Also Trune is implementing new strategies for the view and food truck, there are going

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to be a hosting additional special events, focusing on new menu, one exciting one to me is

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and many other activities.

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And I already talked about it, but I want to make sure I mention the collaboration with

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the CVB, our local hotels, and the city to increase golfers to the resort.

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Because as mentioned previously, there are some gaps in the T-sheet and we want to see if

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there's opportunities to fill that gap.

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In addition, city staff will be more active in our management of the facility.

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We will be having monthly tours of the facility to review the maintenance and the condition

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of the courses as well as the building itself.

399
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We will have the golf committee out there on a semi-annual basis.

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We actually had a tour a few months ago with the golf committee and they thought that would

401
00:27:46,130 --> 00:27:49,150
be a great idea that they should be out there a couple of times a year just to see what's

402
00:27:49,150 --> 00:27:53,050
going on as well as regular agronomy updates to the golf committee.

403
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So that the golf committee understands what work, true and is doing on the golf course.

404
00:27:57,910 --> 00:28:02,550
And lastly, and most importantly, is making sure we improve communication with each of you.

405
00:28:03,470 --> 00:28:09,410
Future decisions on operations, including what hours are going to be open, golf course closures, et cetera,

406
00:28:09,530 --> 00:28:12,390
need to make sure they're being conveyed to you in a timely manner.

407
00:28:12,950 --> 00:28:18,510
And not just that, if it ever requires a decision by the City Council and needs to be made by the City Council as well.

408
00:28:19,130 --> 00:28:22,390
So we'll make sure to improve communication between true and

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00:28:22,390 --> 00:28:25,390
myself and from me to each of you.

410
00:28:25,390 --> 00:28:27,790
And we'll do that via the Friday with the report.

411
00:28:28,070 --> 00:28:31,150
And if there's any need to agenda something,

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00:28:31,390 --> 00:28:33,790
we'll make sure that you have the opportunity to address it.

413
00:28:33,910 --> 00:28:36,970
So it'll be in a similar format where we'll share the information with you.

414
00:28:37,350 --> 00:28:39,190
And if you wish to agenda us, let me know.

415
00:28:39,310 --> 00:28:40,470
We'll make sure we address that.

416
00:28:42,530 --> 00:28:46,150
So before I do that, I'm going to, or before I turn over to Kevin

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00:28:46,150 --> 00:28:47,770
to do the budget presentation.

418
00:28:48,410 --> 00:28:51,510
I just want to make sure that the presentation about the here from Kevin

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00:28:51,510 --> 00:28:56,630
Kevin is a snapshot of what we believe and know of the operations as of today.

420
00:28:56,790 --> 00:29:02,530
There's some uncertainties that you'll be hearing from both, yeah, it's several uncertainties.

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00:29:02,750 --> 00:29:03,150
Thank you.

422
00:29:03,510 --> 00:29:07,010
From both Kevin and Mr. Rosen as we go through our presentation.

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00:29:07,670 --> 00:29:10,230
So with Al turnover, Kevin who wants to talk to you a little bit about the budget.

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00:29:10,410 --> 00:29:13,390
If I may, Kevin, just before you start, I just want to make a comment.

425
00:29:14,530 --> 00:29:20,670
I appreciate the report that you just gave us, Mr. City Manager, and I just want to comment

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00:29:20,670 --> 00:29:25,650
that it came to my attention that last week that the city manager and

427
00:29:25,650 --> 00:29:30,850
finance director each spent over 20 hours 20 hours working on this

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00:29:30,850 --> 00:29:37,570
report and this information well over half of their work week. That was

429
00:29:37,570 --> 00:29:43,530
basically caused by the questions asked by two council members. Now we do have

430
00:29:43,530 --> 00:29:48,910
a policy on this council and in this case it worked. There's a great deal of

431
00:29:48,910 --> 00:29:52,170
benefit that the city manager and probably finance director derive from this.

432
00:29:52,630 --> 00:29:57,850
I just want to reiterate that we do have a policy on this council that if any council member

433
00:29:57,850 --> 00:29:59,810
asked for staff

434
00:30:00,210 --> 00:30:29,730
Time in an aggregate of two hours or more than two hours. And that includes any number of employees. That has to be come to the council for approval. So while I recognize in this particular case, it was time will spent and I appreciate that. I just think that we in the future need to remember that because it's just too easy to ask questions and then have the staff. I mean, you're talking over half their work week was spent on this last week.

435
00:30:29,730 --> 00:30:36,030
So anyway, I do that and I do want to say as I'm encouraged with your comments about getting

436
00:30:36,030 --> 00:30:41,370
more involved with the management. The oversight I would think it would probably be more appropriate.

437
00:30:41,890 --> 00:30:48,690
I have confidence in the city manager to understand the need to be very careful in terms of the

438
00:30:48,690 --> 00:30:55,830
contractor employee relationship and that we don't get involved in the weeds if you will. Thank you.

439
00:31:02,590 --> 00:31:07,650
Thank you, Mr. Feeling for that Honourable Mayor, members of the City Council.

440
00:31:07,950 --> 00:31:14,250
As you know, we just heard a staff work with Trune to reformat the budget based on each

441
00:31:14,250 --> 00:31:15,030
profit center.

442
00:31:15,690 --> 00:31:21,290
It's now become a budget that's very similar to your city budget, your program budget,

443
00:31:21,290 --> 00:31:26,690
where each of the, each program specifies all the expenses for that particular service.

444
00:31:26,690 --> 00:31:33,610
So the new format that we've presented for you today is, again, very similar to the monthly

445
00:31:33,610 --> 00:31:37,750
financials that you are receiving and you will continue to receive.

446
00:31:38,410 --> 00:31:43,550
The more the new format includes all of the anticipated revenues for each program and

447
00:31:43,550 --> 00:31:48,890
then all of those underlying expenses that are required to operate that cost center.

448
00:31:49,610 --> 00:31:54,990
And finally, under that net operating revenue for the first time, we're now allocating

449
00:31:54,990 --> 00:31:55,370
costs.

450
00:31:55,370 --> 00:32:03,290
So we're allocating parts of payroll, general administrative costs, and of course, building maintenance costs as well.

451
00:32:03,870 --> 00:32:13,510
Looking at it in its totality, we're anticipating about 68,000 rounds this year, another 234,000 covers.

452
00:32:14,230 --> 00:32:24,390
Total revenues coming into the golf resort will be about 13.9 million qualifying expenditures, about 13.7.

453
00:32:24,390 --> 00:32:33,410
And as Mr. Freeland mentioned just a moment ago, we have asked for a capital replacement budget of $500,000 this year.

454
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But that will be limited to only those that really are necessary.

455
00:32:38,570 --> 00:32:40,210
We don't anticipate spending at all.

456
00:32:40,610 --> 00:32:50,290
We're really going to try to limit those capital investments to only things that need to be repaired to continue to operate the facility until we can grow our revenues back.

457
00:32:50,870 --> 00:32:57,470
Probably the most important thing that I want to talk about this year's budget is

458
00:32:57,470 --> 00:33:03,430
where, as you mentioned earlier, we're heading into that great unknown of COVID, social

459
00:33:03,430 --> 00:33:05,310
distancing, how is that going to work?

460
00:33:05,710 --> 00:33:07,490
When are things going to be the new normal?

461
00:33:07,630 --> 00:33:09,010
We've heard all these terms before.

462
00:33:09,710 --> 00:33:17,690
And so as part of this process for the first time ever, Trune will continually reforecast

463
00:33:17,690 --> 00:33:18,390
the budget.

464
00:33:18,390 --> 00:33:23,130
So the budget I just spoke of, I promise you, will be different in the end of July.

465
00:33:23,650 --> 00:33:30,550
We're going to continually reinforce that budget on a monthly basis for all of the profit centers.

466
00:33:30,550 --> 00:33:35,510
It's not just the consolidated piece, but each profit center will be updated.

467
00:33:35,990 --> 00:33:41,670
All of the updates will include any updates that we see with state safety guidelines.

468
00:33:41,670 --> 00:33:47,450
will include actual monthly performances and of course we'll update all of

469
00:33:47,450 --> 00:33:55,230
rounds and cover forecasts as well which would include any changes. So just by way

470
00:33:55,230 --> 00:34:00,410
of example currently in our banquet business as you know we have about

471
00:34:00,410 --> 00:34:05,990
$900,000 already on the books. We're looking to grow that by about another

472
00:34:05,990 --> 00:34:10,990
other 600,000 but if we have a second wave of COVID, that's not going to happen.

473
00:34:11,630 --> 00:34:16,870
And so one of the things that I really want to express to the council is we have this

474
00:34:16,870 --> 00:34:24,010
ability as new information comes in, we're updating that budget every 30 days and we'll

475
00:34:24,010 --> 00:34:32,150
be able to, as we lower revenues or increase revenues, we'll be able to lower or decrease

476
00:34:32,990 --> 00:34:38,870
those offsetting expenditures in each one of the programs and we'll be giving you

477
00:34:38,870 --> 00:34:43,990
that as I said before we'll be giving you this monthly updated forecast I

478
00:34:43,990 --> 00:34:47,890
think it's really going to be helpful because it'll allow you to keep a laser

479
00:34:47,890 --> 00:34:52,850
focus on not just where we've been but where we're going it's one of the best

480
00:34:52,850 --> 00:34:57,750
communication pieces that I think has come out of this and that will come to you

481
00:34:57,750 --> 00:35:01,470
every month along with your monthly financials.

482
00:35:01,650 --> 00:35:07,290
So with that, staff recommends the council adopt the budget, as we've presented it,

483
00:35:07,630 --> 00:35:15,130
subject to these ongoing budget modifications based on those new monthly forecasts that I just talked about.

484
00:35:15,610 --> 00:35:18,190
And with that, staff is available for any questions.

485
00:35:18,730 --> 00:35:25,450
We have Mr. Rosen in the audience today, if there's any specificity on any one of the programs as well.

486
00:35:25,690 --> 00:35:26,570
So thank you for your time.

487
00:35:26,570 --> 00:35:27,730
Thank you.

488
00:35:28,030 --> 00:35:28,570
Okay.

489
00:35:28,790 --> 00:35:35,050
Before we start, just so that one of the reasons for being here is that we got the questions,

490
00:35:35,050 --> 00:35:40,730
I know Mr. Merton's objects to 20 hours of their time, but if we'd done this over the

491
00:35:40,730 --> 00:35:43,550
last eight years, it wouldn't have been 20 hours of time.

492
00:35:43,930 --> 00:35:49,990
This is the first time, and I thank Chris and this staff and Steve, for putting the time

493
00:35:49,990 --> 00:35:56,110
in for us to finally get a grab on this business, understand the complexity of this business.

494
00:35:56,110 --> 00:36:02,030
and understand that we all need to understand what goes on in this business and since it's a major

495
00:36:02,030 --> 00:36:06,830
law category, not a profit category to us, and how we can improve it and continue to

496
00:36:06,830 --> 00:36:12,370
improve it. And this is not time wasted. This is time that was critical at this point.

497
00:36:13,310 --> 00:36:17,430
One, because of COVID, but two, because we need to understand them, to be honest,

498
00:36:17,570 --> 00:36:22,430
with these past two city managers did not do this when I was on this council,

499
00:36:22,430 --> 00:36:26,110
when Ted was on this council, and it is critically important.

500
00:36:26,230 --> 00:36:30,890
You don't have to be an expert in this business, but we do all need to understand the business

501
00:36:30,890 --> 00:36:35,730
and to be able to make the proper decisions going forward.

502
00:36:36,330 --> 00:36:43,670
And this should be a huge help to the new council, and it should be a way to measure this business

503
00:36:43,670 --> 00:36:46,830
from now on the way it should be properly measured.

504
00:36:47,110 --> 00:36:50,890
This is a business, and whether it's a profit or a loss,

505
00:36:50,890 --> 00:36:57,850
It has to be run as a business and so I I can't thank all of you enough your time was well spent

506
00:36:57,850 --> 00:37:03,930
You certainly would have done this without us you would have had to do it you asked us for questions

507
00:37:03,930 --> 00:37:06,550
We all gave you questions some gave more than others

508
00:37:06,550 --> 00:37:14,670
But those questions are very specific and unfortunately questions create more questions and and what I would say to you

509
00:37:14,670 --> 00:37:17,850
Steve today is if you're not comfortable with the question

510
00:37:18,370 --> 00:37:20,090
Just say you'll get back

511
00:37:20,890 --> 00:37:27,630
You don't need to spend an hour on a question, if the question requires further work,

512
00:37:27,930 --> 00:37:32,450
you can come back with those answers back to the council in the next three weeks,

513
00:37:32,930 --> 00:37:39,430
whatever you think you need to answer the questions. Personally, I thank you and why don't

514
00:37:39,430 --> 00:37:44,070
you come up here and we'll go through this with the council and we're just going to go

515
00:37:44,070 --> 00:37:48,430
council person to council person. Some will have more questions and more things to talk about.

516
00:37:48,430 --> 00:37:51,210
others won't, if you don't want to listen to the others,

517
00:37:51,390 --> 00:37:54,690
shut your Zoom off or shut your mic off and go get a cookie.

518
00:37:55,250 --> 00:37:58,550
But we're going to get through this whole process, and once we get through it,

519
00:37:58,970 --> 00:38:01,730
there will be a need, probably, for one more meeting.

520
00:38:01,850 --> 00:38:06,730
That probably will be because we're going to need to look at the budget even closer.

521
00:38:06,730 --> 00:38:10,530
And I think you'll understand that as we go through the discussions today.

522
00:38:10,530 --> 00:38:14,470
But we're not ready to have to be very candid to you a final budget,

523
00:38:14,470 --> 00:38:18,030
because there are still outstanding issues that need to be taken.

524
00:38:18,030 --> 00:38:22,910
to look at, and if you, one of the things I'll refer you to is the mission statement.

525
00:38:23,370 --> 00:38:29,270
And if you look at the first paragraph, let's just hold on one second.

526
00:38:31,070 --> 00:38:37,010
If you look at the third paragraph, the fourth paragraph, and the fifth paragraph of the

527
00:38:37,010 --> 00:38:42,170
mission statement, you'll see why there needs to be still some continued work done on the

528
00:38:42,170 --> 00:38:42,510
budget.

529
00:38:42,510 --> 00:38:48,270
And to be honest with you, I've been involved now with Sunline's budget, the Zoos budget,

530
00:38:48,490 --> 00:38:53,730
CVB's budget, and I've looked at Cathedral City and Lequint's budgets.

531
00:38:54,210 --> 00:39:00,230
And let me tell you, it isn't a pretty picture, and we need to err on the side of conservative

532
00:39:00,790 --> 00:39:05,630
versus being too aggressive at this point, because we just don't know, and the conversation

533
00:39:05,630 --> 00:39:08,790
with the supervisor today, it can get worse.

534
00:39:08,790 --> 00:39:13,750
And we need to be prepared that from a financial standpoint in the city.

535
00:39:13,890 --> 00:39:16,530
So Steve, why don't we just, we'll start with Kimberly.

536
00:39:16,810 --> 00:39:20,230
And you just go ahead and ask any question you want, any follow-up question.

537
00:39:20,310 --> 00:39:24,950
And we'll just go through everybody here and try to get the answers that you need to get.

538
00:39:25,170 --> 00:39:28,750
Well, I think in looking at the report, we're just quite extensive,

539
00:39:29,110 --> 00:39:32,630
that there's been a lot of work that's put into it, a lot of thought,

540
00:39:33,310 --> 00:39:37,790
a lot of don't do something unless it absolutely has to be done.

541
00:39:37,790 --> 00:39:48,870
So, my only main thought is that we have to realize that these hotels were built with

542
00:39:48,870 --> 00:39:52,330
the mind, them using our golf courses.

543
00:39:53,290 --> 00:40:00,910
And I know way back when there was discussion that TOT, there should be a certain percentage

544
00:40:00,910 --> 00:40:05,810
that is allotted to the NELS golf resort.

545
00:40:06,910 --> 00:40:20,090
So that's my main thought, is that if there's a way that we can really track from the hotels how much play or how much excuse me TOT is brought in because of our golf courses,

546
00:40:21,590 --> 00:40:30,410
I want to make sure that that money is allocated to the annuals golf resort. Does that make sense what I said?

547
00:40:32,150 --> 00:40:41,090
If I can attempt to respond, I think what you're asking is that staff be able to help track

548
00:40:41,090 --> 00:40:43,350
how much TOT is generated from our local hotels.

549
00:40:43,970 --> 00:40:51,490
Mr. McCarthy has put together an estimate of $690,000 a year and TOT is generated from

550
00:40:51,490 --> 00:40:55,710
golf patrons and that's kind of a conservative number because we're not sure if someone

551
00:40:55,710 --> 00:40:59,750
comes here and golfs for a day, how many multiple days will they be staying here.

552
00:40:59,750 --> 00:41:08,710
So on a, I think a conservative estimate we've done in finance about $690,000 a year of TOT comes in as a result of the golfers or activities.

553
00:41:09,090 --> 00:41:12,490
Okay, thank you. Thanks for the good job.

554
00:41:13,290 --> 00:41:14,270
Any other questions?

555
00:41:14,790 --> 00:41:14,850
No.

556
00:41:15,030 --> 00:41:17,010
I have a question, Mr. Mayor.

557
00:41:17,270 --> 00:41:19,590
I'm trying to get, so you can go next.

558
00:41:20,270 --> 00:41:21,830
In my recommendation?

559
00:41:22,150 --> 00:41:22,350
Yes.

560
00:41:28,850 --> 00:41:29,730
Thank you.

561
00:41:29,730 --> 00:41:34,550
the golf? Is that what I understood you to say? No, no. What I was saying is that a portion

562
00:41:34,550 --> 00:41:41,370
of TOT about $690,000, conservatively, is what we believe is coming in annually to the city.

563
00:41:41,870 --> 00:41:49,370
What's the total TOT? What is our total TOT? $8 million. So yes.

564
00:41:49,770 --> 00:41:55,770
That's less than 10%. Correct. And that is one of the focus that was mentioned is that we are going

565
00:41:55,770 --> 00:42:01,850
We work closely with Trune, the CVB, and our hotel operators to find opportunities to

566
00:42:01,850 --> 00:42:05,710
increase their participation to bring in more golfers as well.

567
00:42:05,930 --> 00:42:10,190
And so we've already begun those discussions with our marketing partners but actually with

568
00:42:10,190 --> 00:42:11,310
our local hotels as well.

569
00:42:12,790 --> 00:42:14,290
We want to see that increased.

570
00:42:16,210 --> 00:42:25,620
If we're only getting 10% of our TOT from golfers, I

571
00:42:32,020 --> 00:42:33,520
thought the whole purpose of the

572
00:42:33,520 --> 00:42:38,240
off-burses was to drive TOT, and apparently they're early,

573
00:42:38,460 --> 00:42:40,460
they're early 10% of it.

574
00:42:46,320 --> 00:42:50,300
If I may, council member Reed, if I may attempt to add

575
00:42:50,300 --> 00:42:52,980
just perhaps a little flavor to the comment as per

576
00:42:53,420 --> 00:42:57,960
the city manager's comment, what's difficult first and foremost

577
00:42:57,960 --> 00:43:01,460
just to lay out a basis is to really get your arms around

578
00:43:02,080 --> 00:43:05,880
the relationship of TOT as it relates to golf.

579
00:43:05,880 --> 00:43:08,120
Here's a graphic example of what I mean.

580
00:43:08,860 --> 00:43:14,580
If a golfer comes and plays around the golf, all the director of finances is doing based

581
00:43:14,580 --> 00:43:19,920
on what information we give him is we attribute a one-night stay to that individual staying

582
00:43:19,920 --> 00:43:21,100
at that particular hotel.

583
00:43:21,520 --> 00:43:26,820
What we do not know is if they stayed the day before or stayed the day after or made multiple

584
00:43:26,820 --> 00:43:27,460
days of it.

585
00:43:27,560 --> 00:43:33,160
So again, there's probably a uncalculable factor associated with it.

586
00:43:33,240 --> 00:43:33,880
That's number one.

587
00:43:33,880 --> 00:43:47,600
Number two, attributing the golf courses to a hotel stay does not necessarily bring a guest to a hotel that just wants to golf, but wants to be in the environment of that beauty and that golf course and that greenery.

588
00:43:48,120 --> 00:43:56,400
So again, you can't say that he or she came across to the golf resort, played golf, and you can attribute it to them.

589
00:43:56,400 --> 00:44:00,900
So, again, there's an uncalculable factor associated with why do they come to Indian Wells?

590
00:44:02,260 --> 00:44:07,080
So, they're not just coming to the Indian Wells, but they all do respect to my hotel partners.

591
00:44:07,480 --> 00:44:12,440
They're not just coming to Indian Wells because it's a beautiful city with beautiful hotels.

592
00:44:13,120 --> 00:44:19,840
I think the view aspects of what you pride as 36 holes of amazing beauty, not just golf,

593
00:44:20,400 --> 00:44:24,200
is a huge draw as a resort, not just a golf course.

594
00:44:24,200 --> 00:44:26,800
So, again, you must factor that piece in as well.

595
00:44:27,160 --> 00:44:30,860
I do not know what that attributes to in dollars and cents.

596
00:44:31,600 --> 00:44:39,780
Well, plus, just to add, not only do people come for golf, but they also come for the weddings.

597
00:44:41,620 --> 00:44:44,440
And so that, I don't know.

598
00:44:44,440 --> 00:44:47,280
We have a wedding party of 200 people that could stay at the hotel.

599
00:44:47,720 --> 00:44:52,740
We don't track that simply because we're getting banquet revenue from it, but we don't know

600
00:44:52,740 --> 00:44:57,780
how much to attribute to a stay, so I hope that makes sense.

601
00:44:58,000 --> 00:44:59,880
It's too bad there wasn't a direct science.

602
00:45:00,000 --> 00:45:29,500
It's consistent how to figure this out, but there won't be. I think I think Steve did a, it doesn't matter what it is, by the way. It is just a guess at best. And we, we got a methodology. We were told what it is. There could be other ways to do it, too. We all know that it's like an allocated cost. And I would say this. I think that the, it isn't whether they just use the golf course. It's whether they use the facility. And I think we just heard that,

603
00:45:29,500 --> 00:45:33,720
There are a number of people and the reason why I asked that is it okay if I go already?

604
00:45:33,940 --> 00:45:40,400
Dana, are you done? I don't mean you're on the deal. I don't want you to be able to finish.

605
00:45:42,160 --> 00:45:45,240
Dana, are you there? He's on mute.

606
00:45:47,600 --> 00:45:50,300
Do you have any more questions? I didn't want to cut you off.

607
00:45:50,800 --> 00:45:56,640
No, no, no, I'm fine. The number is so low. It's just shocking.

608
00:45:56,640 --> 00:46:01,520
If it's not, if it's not, I could remember, then let's not use it, because it's so

609
00:46:01,520 --> 00:46:06,820
shockingly low that I couldn't believe that we're going through all of this and generating

610
00:46:06,820 --> 00:46:08,020
so little amount of money.

611
00:46:08,160 --> 00:46:13,780
Well, I think, Dana, that the thing that isn't in there is all of the other things that the

612
00:46:13,780 --> 00:46:19,460
hotel's benefit, that the golf resort, whether it's backwards, whether it's eating meals

613
00:46:19,460 --> 00:46:24,600
there, there's more than, and I agree with you, it isn't just golf.

614
00:46:24,600 --> 00:46:30,780
And so the tote tax is probably higher than that when you get to all of the things

615
00:46:30,780 --> 00:46:31,460
included.

616
00:46:31,800 --> 00:46:35,080
I think this one just correct me if I'm wrong is just golf.

617
00:46:35,460 --> 00:46:39,260
I think it operates like a resort fee, quite frankly.

618
00:46:40,000 --> 00:46:44,800
And it's just part of the resort campus, just that we happen to own that part of it.

619
00:46:45,060 --> 00:46:48,640
And we could say maybe all the TOT is part of that.

620
00:46:48,920 --> 00:46:49,360
I don't know.

621
00:46:49,380 --> 00:46:50,920
You can make an argument any way you want.

622
00:46:51,300 --> 00:46:53,380
I think the deal is it doesn't matter.

623
00:46:53,380 --> 00:46:58,440
We do well really well on TOT and the golf course adds to the TOT. I think we can

624
00:46:59,100 --> 00:47:03,940
agree with that. I have some questions. Yeah, Dana, do you have any other questions?

625
00:47:05,500 --> 00:47:11,140
No, I'm not now. Okay. Go ahead, Richard. Well, let me kind of go down my list. Chris,

626
00:47:11,480 --> 00:47:15,680
you mentioned the master plan. Have we ever done a master plan?

627
00:47:16,880 --> 00:47:23,340
We have never done a master. Okay, so there's never really been one done. And I don't know what

628
00:47:23,340 --> 00:47:40,760
I know you've highlighted some things, but I assume that will that be something that you intend to put a scope of services together will it go out for bid and is that something that would come to the council or at some point in time either to go out to bid or to approve it a bid or how will that work?

629
00:47:40,760 --> 00:47:41,680
No, absolutely.

630
00:47:41,840 --> 00:47:48,460
It would be our intent to have the RP be developed by staff, send it out to the golf

631
00:47:48,460 --> 00:47:51,860
committee, have them review it, and bring them to the City Council for the approval of

632
00:47:51,860 --> 00:47:53,360
the RFP before it goes out on the street.

633
00:47:53,500 --> 00:47:57,360
Yeah, I had some thoughts initially when I saw it go, wow, maybe we shouldn't be spending

634
00:47:57,360 --> 00:48:02,360
the money, but if we've never done one and the things, and the dynamics have changed here,

635
00:48:02,460 --> 00:48:07,500
I think we really need to know that, is that golf, as these courses, even though they were

636
00:48:07,500 --> 00:48:13,560
read down in a new facility constructed during this period of time, the golf courses have been here for quite some time.

637
00:48:14,360 --> 00:48:18,780
And they probably had more hotel play 20 years ago than they do today.

638
00:48:18,920 --> 00:48:19,180
They do.

639
00:48:19,660 --> 00:48:22,100
And we don't even know. We know that's happened.

640
00:48:22,480 --> 00:48:25,380
And hotels are in the business to market hotel rooms, okay?

641
00:48:25,720 --> 00:48:28,920
And if the golf course is like I said on the campus, but they don't use it,

642
00:48:29,240 --> 00:48:31,500
that just like they have a pool, they might not use the pool,

643
00:48:31,780 --> 00:48:33,560
but it's part of the experience here.

644
00:48:33,560 --> 00:48:44,220
and I think we, the master plan is probably really needed today, because I think things have changed, and as such, I'll get to that moment.

645
00:48:45,460 --> 00:48:49,780
These aren't in any particular order, okay, Steve, so then, and some of them are just here.

646
00:48:50,420 --> 00:48:56,780
Are we still, I hear that we may not be allowing, are we going to allow walk-up play anymore?

647
00:48:56,780 --> 00:49:05,140
And so they walk up so what so today and with the way we're operating we have to go online right so somebody could if they want to do that

648
00:49:05,140 --> 00:49:09,900
They really just can't come to the course and pay money in place that right at present today

649
00:49:09,900 --> 00:49:16,040
They cannot so so that's a really good question and and there's a different answer from a future perspective

650
00:49:16,040 --> 00:49:22,960
So at present today based on the circumstances on where we are our mission is to make

651
00:49:22,960 --> 00:49:28,800
make everything as much as humanly possible, contactless as possible.

652
00:49:30,340 --> 00:49:36,580
So presently we have and we will for the future continue to keep prepaid golf online where

653
00:49:36,580 --> 00:49:41,400
you purchase your golf, you come in, you literally can bypass having to come in and check

654
00:49:41,400 --> 00:49:42,180
in through the counter.

655
00:49:42,320 --> 00:49:46,900
You can simply go outside, therefore not having to queue up in a line, get crowds and so forth.

656
00:49:47,480 --> 00:49:50,360
So the reality is what will we do from a future perspective?

657
00:49:50,360 --> 00:49:55,420
Well, as things begin to change, you'll certainly have the ability to come in at some point

658
00:49:55,420 --> 00:49:58,180
in time with a credit card, it's not that you won't be able to do that.

659
00:49:58,880 --> 00:50:04,320
However, we want to be able to manage opportunity now and minimize the potential of the hazards

660
00:50:04,320 --> 00:50:05,920
that we present in our experiencing today.

661
00:50:06,080 --> 00:50:07,900
Yeah, I totally understand that.

662
00:50:08,380 --> 00:50:15,180
The reason is that I think walk-up play is good, but more than that, it's the experience

663
00:50:15,180 --> 00:50:19,520
if you've walked into a pro shop, and I'll give my own example, I've walked into places

664
00:50:19,520 --> 00:50:23,900
thinking I'm only going to pay for golf and end up buying a hat or I don't

665
00:50:23,900 --> 00:50:28,400
realize I have a glove so some merchandise sales are a result of coming in the

666
00:50:28,400 --> 00:50:34,120
shop in the experience of that and and we have really a very wonderful great

667
00:50:34,120 --> 00:50:39,240
pro shop at top notch so I just don't want to make sure that we don't lose that by

668
00:50:39,240 --> 00:50:44,000
just thinking oh we've gone to the millennial world of let's not talk let's use

669
00:50:44,000 --> 00:50:47,640
this all the time and knowing and do that and I just don't want to lose that

670
00:50:47,640 --> 00:50:51,260
experience your your point is well taken so I think there are just a couple of

671
00:50:51,260 --> 00:50:55,400
things with that associated with that so we have we understand that we recognize

672
00:50:55,400 --> 00:51:00,200
that we've talked about that it is from a future perspective but bear in mind

673
00:51:00,200 --> 00:51:04,920
that we have we've now accomplished two things for that next gen if you will for

674
00:51:04,920 --> 00:51:09,320
this this little crazy thing that we all carry the reality is we have an

675
00:51:09,320 --> 00:51:13,660
amazing online shop that you're probably aware of that I'm actually not

676
00:51:13,660 --> 00:51:28,200
It's amazing. So we actually pushed it out to the city with city staff. It is an amazing online shop that Pam has put together for us that has begun the process of picking up some of the loss because you're right.

677
00:51:28,640 --> 00:51:33,860
You're not going to go into the golf shop to check in right now, especially you're going outside by the landing. You guys know you golf.

678
00:51:33,860 --> 00:51:39,000
So the reality is one that's picking up some of the slack too, when we get into season

679
00:51:39,000 --> 00:51:43,840
we'll be creating packages that will also be online packages that will give you the

680
00:51:43,840 --> 00:51:53,070
ability to pick up some of the loss of buy when you're walking the shop will include

681
00:51:53,070 --> 00:51:58,090
balls with it, a hat with it, a shirt with it, we'll give you that ability to actually

682
00:51:58,090 --> 00:52:02,650
buy it online before you even come pick it up as you go through check in so we're putting

683
00:52:02,650 --> 00:52:03,550
those together as well.

684
00:52:03,550 --> 00:52:10,930
Yeah, I haven't had an opportunity to review the marketing plan and I'm not that interested in all the details of the marketing plan to be quite honest with you

685
00:52:10,930 --> 00:52:23,710
but as I leave that to you, but in the marketing plan itself, will you be looking at things like that, like with somebody checks in online, could they pay like $15 more and that includes a hat or a sleeve of a box?

686
00:52:23,770 --> 00:52:25,030
That's exactly what I was referring to.

687
00:52:25,030 --> 00:52:26,450
Is that all you're planning to do?

688
00:52:26,450 --> 00:52:26,710
Exactly.

689
00:52:27,470 --> 00:52:29,970
We're doing that, and that's exactly what I was talking about.

690
00:52:30,150 --> 00:52:33,130
And we're also doing that of it related

691
00:52:33,130 --> 00:52:35,030
to the tournament group side of things.

692
00:52:35,450 --> 00:52:37,730
So there's also an incentive and a package

693
00:52:37,730 --> 00:52:39,450
that we're putting together from a group side

694
00:52:39,450 --> 00:52:41,310
that will also include merchandise.

695
00:52:41,750 --> 00:52:42,970
And we've never done that before.

696
00:52:43,770 --> 00:52:46,070
And this is really provoked us to really go down

697
00:52:46,070 --> 00:52:48,950
that road where when you're purchasing group buy,

698
00:52:49,590 --> 00:52:52,170
we can include gift cards with different steps

699
00:52:52,170 --> 00:52:58,630
buy 100, get 25 back, and those kinds of things to offset the lack of traffic that you're

700
00:52:58,630 --> 00:52:59,290
going to have in the shop.

701
00:52:59,450 --> 00:53:01,330
Yeah, I'm glad to hear you're doing that.

702
00:53:03,110 --> 00:53:10,150
But just to go to your question, when I went and reviewed the marketing plan, my understanding

703
00:53:10,150 --> 00:53:16,790
was that people would no longer be able to even have to COVID come in and walk up and pay

704
00:53:16,790 --> 00:53:21,870
for golf, with cash or whatever, that that was not going to be a policy anymore.

705
00:53:22,010 --> 00:53:23,310
Is that, did I misunderstand?

706
00:53:23,990 --> 00:53:24,150
Yeah.

707
00:53:24,290 --> 00:53:29,550
Our intent is to go as much as humanly possible with prepay golf for a lot of reasons.

708
00:53:29,810 --> 00:53:34,250
However, the reality behind it is after we get out of this and we're safe enough, the

709
00:53:34,250 --> 00:53:36,950
last thing we're going to do is turn away business.

710
00:53:37,490 --> 00:53:41,050
But the reality behind this is, and I don't want to mislead anybody in the bleeding guess,

711
00:53:41,430 --> 00:53:44,650
we don't want to make that as an option right now today because there are too many people

712
00:53:44,650 --> 00:53:47,430
That would take it as an option and we want to remain safe.

713
00:53:47,630 --> 00:53:50,110
No, I'm not going to go down that road.

714
00:53:50,190 --> 00:53:54,150
I think I'm just looking out if we can think what maybe normal is again.

715
00:53:56,130 --> 00:53:57,170
If there is such a thing.

716
00:53:58,890 --> 00:54:02,770
Chris, this one's really for you and that's the, so when we adopt a budget,

717
00:54:03,370 --> 00:54:08,670
like we do for the city, and we're assuming that even a tune operates,

718
00:54:08,870 --> 00:54:11,130
and this operates like any other department.

719
00:54:11,350 --> 00:54:13,510
Does it not from a budget control standpoint?

720
00:54:14,130 --> 00:54:18,890
That's what our focus is this year is, that's what Mr. McCarthy said as far as programming.

721
00:54:19,330 --> 00:54:23,510
We want to make sure we have an idea of how much to be spent in each department and to keep those controls in place.

722
00:54:23,710 --> 00:54:30,830
So yeah, because I, the real question I have is not for you and Steve, but how does the city work with Trune to control the budget?

723
00:54:31,030 --> 00:54:38,910
So if you adopt a budget with X amount of positions, just like we do anything else in the Sheriff's Department budget or anything we've done.

724
00:54:38,910 --> 00:54:48,690
It takes some type of action on the part of staff or even the council, I guess, if there's limits in there, and those apply here too.

725
00:54:49,150 --> 00:54:55,290
That's our intent. So you have before you a budget with a number of positions, and those aren't all people working today.

726
00:54:55,630 --> 00:55:01,250
I understand that I understand how budgets are done. We have budgets that have positions in them that aren't filled.

727
00:55:02,370 --> 00:55:07,330
They can be and remain unfilled at your discretion, but that would be true here. That's right working together.

728
00:55:07,330 --> 00:55:17,030
That is correct. The other part of this, for example, of banquets. We project certain revenues, certain costs associated with those, and if those don't come to fruition, those costs won't be realized either.

729
00:55:17,150 --> 00:55:17,370
Thank you.

730
00:55:18,050 --> 00:55:22,030
Okay. Well, that's good. I just wanted to clear that up to make sure that that was simple.

731
00:55:24,690 --> 00:55:29,750
Would we, and you mentioned that, I think, as part of your reporting, will we get some

732
00:55:29,750 --> 00:55:36,050
reports occasionally on how well our marketing plan does, in other words, we spend X, what

733
00:55:36,050 --> 00:55:41,050
do we get Y back, or how does that work, and will we get some of that from you?

734
00:55:41,650 --> 00:55:42,210
You will.

735
00:55:42,570 --> 00:55:47,170
So, I was actually texting and emailing Ms. Michaela Wilkin before the meeting.

736
00:55:47,650 --> 00:55:50,750
There are already certain plan meetings as early as next week with the marketing team.

737
00:55:50,910 --> 00:55:51,050
Yeah.

738
00:55:51,050 --> 00:55:54,890
and they need to put together an action plan and some deliverables to show us.

739
00:55:55,170 --> 00:55:58,890
I was glad to hear there's there's bank with business but still there.

740
00:55:59,230 --> 00:56:04,290
Okay, we don't know if and when it might be able to be fulfilled at this point in time

741
00:56:04,290 --> 00:56:06,030
but it still remains there.

742
00:56:06,570 --> 00:56:07,990
Are those that remain there?

743
00:56:08,330 --> 00:56:10,290
Is there a deposit on hold?

744
00:56:10,510 --> 00:56:12,150
Is that how you call it on the books?

745
00:56:12,350 --> 00:56:15,190
In certain instances, yes, there's a sign contract.

746
00:56:16,110 --> 00:56:19,050
Okay, some have deposits depending upon how far out they are.

747
00:56:19,050 --> 00:56:24,290
And that also goes not just for bankwits, but it also goes for group golf tournaments as well.

748
00:56:24,690 --> 00:56:28,830
Where you have another $780,000 worth of commitments.

749
00:56:29,590 --> 00:56:33,810
However, understand, based on the environment today, we don't know.

750
00:56:34,350 --> 00:56:41,730
But if there is a cancellation or a push, we're unbelievably flexible these days in light of what goes on.

751
00:56:42,010 --> 00:56:45,290
Yeah, I get that, thank you in terms of that.

752
00:56:47,990 --> 00:56:54,730
The performance measurements, I've had lots, I've been big on that and I think it's important.

753
00:56:55,190 --> 00:57:02,310
Only from an aspect, well, from us, we don't know, we're not business, and I don't want to be the business experts.

754
00:57:02,530 --> 00:57:09,290
I just like to get a report of how we do compared to the industry or what our think our peer group or our measurements are.

755
00:57:09,290 --> 00:57:15,490
So I don't I don't want to give up on on that I've been on that for a long time and that

756
00:57:15,490 --> 00:57:20,270
applies really citywide by the way I think to all of our departments what what are

757
00:57:20,270 --> 00:57:24,770
those measurements and benchmarks and that's your job Chris not ours but I want to

758
00:57:24,770 --> 00:57:33,010
make sure that somebody's doing it. One thing Steve I did find interesting is that when

759
00:57:33,010 --> 00:57:41,690
And the restaurant basically seemed to be heavily relying on the hotels to use our restaurant

760
00:57:41,690 --> 00:57:42,390
facilities.

761
00:57:42,810 --> 00:57:44,550
Do I misunderstand that?

762
00:57:44,990 --> 00:57:49,990
In season, the majority of our hotel dinner business is that of hotel, that is correct.

763
00:57:51,110 --> 00:57:56,390
Secondary would be, and I say in season, secondary are your local snowbirds that come in.

764
00:57:57,090 --> 00:58:01,450
And then, of course, our year-round local Coachella Valley as well as residents as well.

765
00:58:01,450 --> 00:58:06,410
And it really depends upon seasonality, month of year itself forth, but a majority of

766
00:58:06,410 --> 00:58:14,150
what comes our way is as a result of the hotel feed and then during different meal periods

767
00:58:14,150 --> 00:58:18,990
you're relying on that of your golf defeated, as well as your local business defeated.

768
00:58:19,390 --> 00:58:21,710
The hotel steer things your way, I assume.

769
00:58:21,850 --> 00:58:22,190
Absolutely.

770
00:58:22,550 --> 00:58:22,730
Okay.

771
00:58:23,010 --> 00:58:27,290
The benefit, and this really goes hand in hand with Council Member Reed's question as to the

772
00:58:27,290 --> 00:58:31,270
nature of not, I don't want to go back to the TOT question, but the reality behind it

773
00:58:31,270 --> 00:58:37,270
It is our campus, which we refer to it as a campus, part of that is really benefiting

774
00:58:37,270 --> 00:58:43,050
the hotel to avoid opportunity for a guest staying at a hotel to have to lead in the

775
00:58:43,050 --> 00:58:46,530
in wells and find something that it might like better.

776
00:58:47,670 --> 00:58:49,650
So we want to keep them as close to homes we can.

777
00:58:49,950 --> 00:58:56,530
I have two last questions and they're both in that deal, so these were more in there.

778
00:58:56,530 --> 00:59:02,710
How did the golf, I noticed in the allocated building cost, do you guys put there, I don't

779
00:59:02,710 --> 00:59:06,770
know whether that was Kevin or whoever wants to answer that, it seems to me is that the

780
00:59:06,770 --> 00:59:12,050
food and beverage would have had a higher building maintenance cost allocated to that cost

781
00:59:12,050 --> 00:59:14,130
center, but yet golf was larger.

782
00:59:14,850 --> 00:59:21,410
So allocations both in building as well as GNA and Mr. McCarthy can certainly step in are

783
00:59:21,410 --> 00:59:25,430
are predicated upon and measured on square foot revenues.

784
00:59:25,950 --> 00:59:26,630
Oh, revenue measures.

785
00:59:26,910 --> 00:59:29,850
Okay, so you guys don't allocate building costs based on square foot?

786
00:59:29,910 --> 00:59:30,750
No, sir, not at all.

787
00:59:30,910 --> 00:59:32,050
Okay, that answers the question.

788
00:59:32,470 --> 00:59:33,210
Okay, thank you.

789
00:59:33,530 --> 00:59:34,490
Is that correct, Mr. McCarthy?

790
00:59:35,330 --> 00:59:36,410
I got the thumbs up.

791
00:59:36,470 --> 00:59:45,410
Okay, well, and then lastly, there was some allocated payroll to the catering or banquet facility.

792
00:59:45,970 --> 00:59:49,170
But shouldn't there have been an offset someplace, or is that just new?

793
00:59:49,170 --> 00:59:49,510
There is.

794
00:59:49,510 --> 00:59:55,610
Okay, so if you look at the caddies, it's a really good question and a good catch. I'm glad you're looking on the interview

795
00:59:56,010 --> 00:59:59,830
P&L piece of it. You'll see an offset for a credit

796
01:00:00,340 --> 01:00:30,260
And the debit is the allocation of those perils to be exact perils for the chef, the executive chef and so forth are allocated. Good job. I saw that. I didn't see the credit on the other side. I'm done. Thank you very much. And, by the way, good work on this. Really, a lot of good stuff here. And I know I'm, I'm, I'm, I get what Ted said about the number of hours in here. But I think it's largely a one time, a one time deal. And after that, it's not going

797
01:00:30,260 --> 01:00:31,900
I'm going to be so conversant.

798
01:00:32,820 --> 01:00:34,380
It's also something that every...

799
01:00:34,980 --> 01:00:36,140
I really hope so.

800
01:00:36,220 --> 01:00:38,080
I hope you're right. You will be both.

801
01:00:39,040 --> 01:00:41,600
Well, Chris has assured me that that's the case.

802
01:00:41,880 --> 01:00:46,640
Well, it's also something every business does just so we understand.

803
01:00:46,780 --> 01:00:48,760
Yeah, they do it periodically.

804
01:00:49,860 --> 01:00:50,660
We've never done it.

805
01:00:50,660 --> 01:00:52,520
Once or twice a year, we haven't done it in eight years.

806
01:00:52,520 --> 01:00:56,820
Well, I think that's because actually, and I want to thank you, Chris, too,

807
01:00:57,040 --> 01:00:59,860
because I think the communication that we're getting and the types of things

808
01:00:59,860 --> 01:01:02,800
in the working environment is really a positive.

809
01:01:03,340 --> 01:01:05,220
There's not contentious, we're here,

810
01:01:05,580 --> 01:01:09,360
we know what it is and that's it.

811
01:01:09,520 --> 01:01:12,360
I think we can't make something happen,

812
01:01:12,480 --> 01:01:15,660
it can't happen and largely like I said,

813
01:01:16,040 --> 01:01:19,380
when you give away and I think you answered that,

814
01:01:19,520 --> 01:01:21,300
when you said it's both an amenity

815
01:01:21,690 --> 01:01:25,220
and a business, the amenity largely to me is the subsidy.

816
01:01:25,760 --> 01:01:26,540
That's an amenity.

817
01:01:28,340 --> 01:01:35,000
I will say in response to that, Mr. Block, that is exactly one of the first discussions

818
01:01:35,000 --> 01:01:37,560
that you and I ever had when you were elected to this council.

819
01:01:38,680 --> 01:01:43,560
And we agreed at the time between us that we needed to come to that realization sometime

820
01:01:43,560 --> 01:01:48,720
and I think we finally have recognizing that it can be both an amenity and a business,

821
01:01:49,240 --> 01:01:53,520
but it's not fair to charge Trune with making up the amenity side.

822
01:01:53,520 --> 01:01:57,320
So this is the first time we've ever admitted that and I appreciate it.

823
01:01:57,460 --> 01:02:08,120
I totally agree with you 100% on that and you know anytime that you start subsidizing anything to some degree.

824
01:02:08,820 --> 01:02:15,280
And if there was another revenue source that could have taken up that subsidy you'll never know how much it was or wasn't.

825
01:02:15,660 --> 01:02:22,920
And we don't know whether all of the subsidy could be gathered by selling at real time to outside.

826
01:02:22,920 --> 01:02:24,380
but we don't know that answer.

827
01:02:24,880 --> 01:02:27,700
I think we think a good portion of it could happen that way.

828
01:02:28,060 --> 01:02:30,260
Maybe it could be exceed that, who knows?

829
01:02:30,740 --> 01:02:31,860
But that's not what we do.

830
01:02:32,300 --> 01:02:35,820
We really don't with the golf course is really only open.

831
01:02:36,220 --> 01:02:39,280
A one-third of the golf course is subsidized

832
01:02:39,280 --> 01:02:41,700
and is available for subsidization.

833
01:02:42,080 --> 01:02:42,760
A third of the time.

834
01:02:43,720 --> 01:02:44,500
Mr. Mayor?

835
01:02:45,020 --> 01:02:45,400
Yes, sir.

836
01:02:46,080 --> 01:02:48,380
At the legal California City, as we call this,

837
01:02:48,500 --> 01:02:49,760
an unfunded mandate.

838
01:02:52,180 --> 01:02:56,580
Yes, that's a good one, Dana. I operate a business like that from the state.

839
01:02:58,100 --> 01:02:58,980
Okay, Ted.

840
01:02:59,740 --> 01:03:04,560
I would just first like to thank Steve, I thank Chris and Kevin, but I'd like to thank Steve

841
01:03:04,560 --> 01:03:07,400
for all the time that you and your staff, your entire staff within.

842
01:03:08,160 --> 01:03:10,920
The reports that we have are mind-boggling.

843
01:03:11,120 --> 01:03:15,760
But I've taken the time to look at them, and I believe now I understand them.

844
01:03:15,760 --> 01:03:20,320
I called Steve. I spent some time on the phone with him trying to fully understand him.

845
01:03:20,340 --> 01:03:24,820
I've talked with Chris. And I appreciate it. And I think that Mr. Peabody's right. This

846
01:03:24,820 --> 01:03:30,240
is long overdue. Hopefully, it's the last time we have to do this during our tenure. But

847
01:03:30,880 --> 01:03:40,100
the fact is that we now have a really strong basis, particularly for the city staff to use

848
01:03:40,100 --> 01:03:44,920
to move forward and to oversee the contract that we have, whether it be with Trune or anybody

849
01:03:44,920 --> 01:03:47,200
anybody else in the operation of the golf resort.

850
01:03:47,940 --> 01:03:53,080
I think the question was asked, I know that the question was asked at least in maybe a

851
01:03:53,080 --> 01:03:53,480
different way.

852
01:03:54,540 --> 01:03:59,440
I'm looking at like your banquet projections and your group golf and so forth, and the

853
01:03:59,440 --> 01:04:04,420
numbers that you have appear to me, at least for the remainder of this calendar year, to be

854
01:04:04,420 --> 01:04:14,000
a little bit optimistic to say the least, but in terms of why they're on here, these are

855
01:04:14,000 --> 01:04:21,120
are actually either committed to banquets or group golf that you have, let's just take

856
01:04:21,120 --> 01:04:26,860
for the calendar year, recognizing there's a strong likelihood that some, if not all,

857
01:04:26,960 --> 01:04:31,060
those may never occur, but they're there because you have either a deposit or a commitment

858
01:04:31,060 --> 01:04:33,880
to have these events. That's correct. That is correct. Thank you.

859
01:04:34,160 --> 01:04:40,020
And what I would also add to that is that since you had that report, the group golf has grown.

860
01:04:40,860 --> 01:04:46,120
So, there's a propensity out there and I want, I'm not advocating, I'm not condemning

861
01:04:46,120 --> 01:04:49,200
or condoning, I'm simply telling you because none of us can predict the future.

862
01:04:49,780 --> 01:04:52,080
I certainly can't because I wouldn't be here if I could.

863
01:04:52,840 --> 01:04:58,580
The reality is I would tell you that there is a propensity out there for a want, for

864
01:04:58,580 --> 01:05:00,420
people to get the heck out.

865
01:05:01,380 --> 01:05:08,220
And golf today, every time I've stood before Council, all you've ever heard me and us

866
01:05:08,220 --> 01:05:13,960
say from the golf resort is how the golf industry has seen that dive and then all of a sudden you're seeing a

867
01:05:14,520 --> 01:05:16,260
Level a leveling of it

868
01:05:17,900 --> 01:05:23,720
This unfortunate pandemic that we've had could potentially be something that could create a

869
01:05:23,720 --> 01:05:29,440
Resurgence in golf by virtue of the fact of what the sport is. I'm not advocating it and saying it

870
01:05:29,440 --> 01:05:36,820
I'm simply saying there is that potential simply because it is a sport that people want to get out there and do and we're seeing

871
01:05:36,820 --> 01:05:41,600
that by virtue of what kind of play we're getting and other courses are getting in the summer.

872
01:05:42,420 --> 01:05:49,620
When it's 110 degrees I've not seen 150 golfers in my eight years and we're seeing that now.

873
01:05:50,060 --> 01:05:58,440
I agree with you and it's particularly encouraging when the CVB reports that a majority and a number

874
01:05:58,440 --> 01:06:03,680
people want to take what I'll call staycations drive you know three four five

875
01:06:03,680 --> 01:06:08,120
six hours we're a natural we're a natural for northern California people

876
01:06:08,120 --> 01:06:11,900
that come want to come down here for some warm so anyway and we're doing

877
01:06:11,900 --> 01:06:15,600
group golf now I mean last Saturday we had groups when I say groups let me

878
01:06:15,600 --> 01:06:20,180
define it so people don't write you letters and comments the reality behind

879
01:06:20,180 --> 01:06:24,060
it is we had a group of 20 golfers they come one at a time they check in they get

880
01:06:24,060 --> 01:06:27,920
individual cards they play that's a group they can't meet in the ballroom

881
01:06:27,920 --> 01:06:32,840
they can't sit down and do scoring. I'd be very clear. Everything is socially

882
01:06:32,840 --> 01:06:36,660
distanced but the reality is they can do box launches. They can go out on the

883
01:06:36,660 --> 01:06:43,260
course. We had them last week. We'll have them this week. So I you're not

884
01:06:43,260 --> 01:06:47,520
going to see the groups of 200 meeting and having a dinner party just yet. Will

885
01:06:47,520 --> 01:06:51,620
it happen? Maybe. We hope.

886
01:06:56,700 --> 01:07:01,100
I'm going to take a little bit of time, but I also will take some of the questions,

887
01:07:01,120 --> 01:07:05,660
put them in writing and give them to Christ to give to Steve to get back, because I know most

888
01:07:06,160 --> 01:07:11,800
of you won't have an interest, but whatever answers he gets back from Steve, obviously

889
01:07:11,800 --> 01:07:12,860
we'll give to the council.

890
01:07:13,520 --> 01:07:16,140
But there are a lot of questions that haven't been asked.

891
01:07:16,140 --> 01:07:26,100
and my first concern is this budget is too aggressive for this time and I will give you two

892
01:07:26,100 --> 01:07:32,020
three things that concern me and I believe we if you don't want if you want to accept

893
01:07:32,020 --> 01:07:37,860
this budget God bless you but I think we need a worst case scenario because I will point

894
01:07:37,860 --> 01:07:39,480
out three things to you.

895
01:07:39,480 --> 01:07:46,420
One is, in Steve's mission statement, he states that, and this is a good mission

896
01:07:46,420 --> 01:07:51,080
statement, Steve, so to understand that, there could be possibility for dramatic

897
01:07:51,080 --> 01:07:55,380
drop in group and leisure rounds due to maintaining operating guidelines.

898
01:07:55,860 --> 01:08:00,500
You may see a drop of 5,000 rounds of social distancing guidelines.

899
01:08:01,280 --> 01:08:07,740
That means to me that we've got to have a different scenario to look at to know what

900
01:08:07,740 --> 01:08:10,200
not really the loss might look like.

901
01:08:10,400 --> 01:08:14,420
Well, your budget is actually increasing, let me just finish this, because it's not

902
01:08:14,420 --> 01:08:14,860
in there.

903
01:08:15,420 --> 01:08:17,060
I've got what you've got.

904
01:08:17,640 --> 01:08:21,540
Then the next one was under retail, you could see a dramatic drop in traffic.

905
01:08:21,760 --> 01:08:24,780
All of this I agree with you, totally agree with you.

906
01:08:25,520 --> 01:08:36,300
The other thing is there were $555,000 of budgeted banquets and golf between now and the end

907
01:08:36,300 --> 01:08:44,080
of December. Personally, I think you're committing suicide to put this in a budget right

908
01:08:44,080 --> 01:08:51,420
now because it's probably a 60-70 percent chance that that will not happen. So my recommendation

909
01:08:51,420 --> 01:08:59,460
to the council is that we have either revised this budget or have a worst-case scenario

910
01:08:59,460 --> 01:09:10,380
So that's so that where is it yeah Chris and Kevin can give us what might be a

911
01:09:10,380 --> 01:09:18,260
significant additional loss of cash and it would be improved for us not to do

912
01:09:18,260 --> 01:09:23,240
that because the reason we've done so well to now is we took a very aggressive

913
01:09:23,240 --> 01:09:29,880
approach over the last 8 years to put money away. This plan, I love your business plan,

914
01:09:30,600 --> 01:09:35,880
but reality tells me that we better have a worst case scenario and be able to see how

915
01:09:35,880 --> 01:09:40,780
we're going to deal with a half a million dollars more of loss. If we don't, we're not

916
01:09:40,780 --> 01:09:45,440
doing our fiduciary responsibility. So I bring that to the council first. That's the

917
01:09:45,440 --> 01:09:52,500
first thing that I want to get on the table is that I believe we need to do another budget

918
01:09:52,500 --> 01:09:59,100
But that tells us what the worst case scenario could be as best as we can judge right now.

919
01:09:59,900 --> 01:10:01,000
That's up to the council.

920
01:10:01,180 --> 01:10:02,400
They don't want to do it.

921
01:10:02,480 --> 01:10:03,140
That's up to them.

922
01:10:03,320 --> 01:10:07,880
But I just got to tell you, having been through a whole bunch of different things, it would

923
01:10:07,880 --> 01:10:11,580
be imprudent for us not to look at a worst case scenario.

924
01:10:11,920 --> 01:10:12,780
Mayor, I have a question.

925
01:10:12,800 --> 01:10:13,320
Yes, ma'am.

926
01:10:15,180 --> 01:10:20,700
But to ask you a question, Chris, didn't you say that this was going to be updated monthly?

927
01:10:23,710 --> 01:10:26,570
That's correct. We'll be updating that and providing update embers on my

928
01:10:26,570 --> 01:10:31,710
place. This is just a start. I'm a starting place. It's not a starting place. Right

929
01:10:31,710 --> 01:10:38,150
now. Do you honestly believe that we're going to get $555,000 of of banquets

930
01:10:38,150 --> 01:10:43,950
engulfed between now and in December 31st? Because if you don't then we shouldn't

931
01:10:43,950 --> 01:10:50,530
put it in there. We're making them. They've given us a budget. If they want to

932
01:10:50,530 --> 01:10:56,130
live by that budget. God bless them, but it's not going to happen. It is not going to happen.

933
01:10:56,490 --> 01:11:02,370
And Steve is right in his mission statement about potential loss of merchandise and potential

934
01:11:02,370 --> 01:11:08,110
loss of golf. And I'm saying you should have two budgets right now. If you want to keep

935
01:11:08,110 --> 01:11:13,250
with Steve's, I won't approve it, but that's just one person. But you have to know that

936
01:11:13,250 --> 01:11:16,290
You're going to lose more money than that's on this budget.

937
01:11:17,150 --> 01:11:23,270
Well, you're looking at it as a part of not just the loss, because this is just a plan.

938
01:11:23,530 --> 01:11:23,870
Correct.

939
01:11:24,390 --> 01:11:26,730
It's a spending plan and a revenue plan.

940
01:11:27,650 --> 01:11:37,190
So if you're concerned that it's too optimistic, is what I'm hearing you say, then would

941
01:11:37,190 --> 01:11:40,270
you prefer they not put anything in there for the banquets?

942
01:11:40,270 --> 01:11:44,030
That would be my preference as a good on a conservative basis.

943
01:11:45,630 --> 01:11:47,170
That's what I'm saying.

944
01:11:47,390 --> 01:11:54,850
I would not put those $555,000 into a budget right now because it isn't happening.

945
01:11:55,050 --> 01:11:57,670
Go look at what CVB is telling you right now.

946
01:11:58,230 --> 01:11:58,950
It's not happening.

947
01:11:59,370 --> 01:12:05,130
Right now, the highest now talking August, it could be September, October, before they

948
01:12:05,130 --> 01:12:05,870
have a function.

949
01:12:05,870 --> 01:12:11,670
But what I guess, and I already made the statement that I thought it might be a little bit

950
01:12:11,670 --> 01:12:19,070
aggressive in terms of what's other, but it's predicated on what you believe that you

951
01:12:19,610 --> 01:12:20,530
have on the books now.

952
01:12:20,750 --> 01:12:24,170
You reasonably believe that you can get this business, is that correct?

953
01:12:24,470 --> 01:12:30,850
So the reality is to answer your question, the mayor's question is based on what we know

954
01:12:30,850 --> 01:12:37,450
From what we've been doing and what we have on the books our what we refer to as our pace

955
01:12:38,930 --> 01:12:39,450
Yes

956
01:12:40,630 --> 01:12:46,810
We don't know whether or materialize. I cannot sit here of all years of counsel to ask Steve Rosen to

957
01:12:46,810 --> 01:12:54,610
Guest to make what his budget is going to be not the right year to choose so the reality behind it is what we are saying is I am not

958
01:12:55,730 --> 01:12:59,330
Saying that it is optimistic or not optimistic. I'm saying that

959
01:12:59,330 --> 01:13:09,910
But we don't know if someone will cancel, and if they cancel will they move it from October to January, or will they completely, to the mayor's point, cancel it completely?

960
01:13:11,210 --> 01:13:18,430
I don't know. I can tell you that I will give you a proactive, not reactive, proactive approach moving forward.

961
01:13:18,930 --> 01:13:25,550
But if you want a worst case scenario budget as I hear the mayor calling up, I'll be happy to work with City staff.

962
01:13:25,550 --> 01:13:31,970
I have one more question regarding the groups that you have on your book's plan.

963
01:13:32,590 --> 01:13:41,970
Have you already thought and visualized how you would accommodate the distancing and

964
01:13:41,970 --> 01:13:48,910
how you would prepare a meal and all of that based upon our COVID situation right now?

965
01:13:49,150 --> 01:13:54,590
So we've not been given guidelines as to how you even handle group business other than

966
01:13:54,590 --> 01:14:00,010
then we know, and it's fairly simplistic to know that, for instance, buffets will have

967
01:14:00,010 --> 01:14:03,330
to go away, or will have to be manned by staff.

968
01:14:04,070 --> 01:14:09,050
Plated functions, you're going to have to be able to socially distance people if you're

969
01:14:09,050 --> 01:14:10,130
required to do so.

970
01:14:10,430 --> 01:14:12,910
Will you be able to sit at a table at 10 anymore?

971
01:14:13,350 --> 01:14:14,250
Probably not.

972
01:14:14,750 --> 01:14:15,730
We don't know that.

973
01:14:16,110 --> 01:14:18,610
So the reality is, we will have to deal with it.

974
01:14:19,290 --> 01:14:23,970
It goes a lot deeper than that, and I know we're not talking about, and I don't want

975
01:14:23,970 --> 01:14:30,330
get you down a different path, but even not having valet in season, you're going to run

976
01:14:30,330 --> 01:14:33,530
out of parking spots and you're not going to be able to maximize it at some point.

977
01:14:33,830 --> 01:14:35,330
We're going to have to deal with that issue.

978
01:14:35,930 --> 01:14:37,730
So there's a lot of unknowns here.

979
01:14:38,550 --> 01:14:40,990
I wish I could throw it dark and get close for you.

980
01:14:41,050 --> 01:14:46,990
Right now, Kimberly, so you know, the policy on functions is ten people.

981
01:14:48,230 --> 01:14:48,730
That's it.

982
01:14:49,150 --> 01:14:49,550
That's it.

983
01:14:49,710 --> 01:14:50,050
Right now.

984
01:14:50,270 --> 01:14:50,650
Yes, sir.

985
01:14:51,330 --> 01:14:51,990
Mr. Mayor.

986
01:14:51,990 --> 01:14:59,970
I understand you correctly in addition to the budget which is before us you would like to see and I think I would like to see

987
01:15:04,680 --> 01:15:05,120
Okay.

988
01:15:08,640 --> 01:15:29,980
So, you're saying the banquet goes out the window. I would have to agree with you. It under a doomsday situation. The banquet goes out the window. It's sort of the expenses of the banquet. So, I mean, it's, I mean, so I think if you're asking for a, a budget that, that, that, that, that.

989
01:15:29,980 --> 01:15:41,400
It presumes the worst, or maybe not the worst, but a very bad situation between now and December 31st.

990
01:15:41,420 --> 01:15:54,400
And if it isn't extremely labor intensive, if this is something that Kevin or somebody can put together in a couple of hours, I'd like to see it as well.

991
01:15:54,700 --> 01:15:55,260
Thanks, Dana.

992
01:15:55,340 --> 01:15:56,900
It's in Dana, it isn't hard.

993
01:15:57,040 --> 01:16:01,480
We're talking about a few adjustment numbers, particularly in revenue, which will then

994
01:16:01,480 --> 01:16:03,600
reflect on certain labor costs.

995
01:16:04,140 --> 01:16:06,940
But yes, what you're saying is correct.

996
01:16:07,720 --> 01:16:10,640
I'm afraid that we're going to have a worst-case scenario.

997
01:16:11,480 --> 01:16:13,500
And if you see the numbers, I agree with you.

998
01:16:13,920 --> 01:16:18,340
I'm not that I wonder what to adopt that, but I certainly like to know what it would look

999
01:16:18,340 --> 01:16:18,560
like.

1000
01:16:18,700 --> 01:16:20,120
That's, I would agree with you.

1001
01:16:20,120 --> 01:16:31,360
I think that what we would do is let's look at that and then and then approve a budget that we can all live with but we're not there yet on the budget and I would totally agree with you.

1002
01:16:31,740 --> 01:16:34,540
I see in can I ask to jump in?

1003
01:16:35,380 --> 01:16:39,600
Steve in the I'm on the bank what in catering page here.

1004
01:16:41,340 --> 01:16:45,940
Obviously revenue costs the sales those they don't materialize if nothing happens.

1005
01:16:45,940 --> 01:16:48,400
So that's, it's not a big deal.

1006
01:16:48,920 --> 01:16:55,640
What really happens is a big deal, but it doesn't change a great deal of things, sir.

1007
01:16:55,720 --> 01:17:04,120
In other words, on trying to figure out, how much fixed expense is budgeted in bankwood

1008
01:17:04,120 --> 01:17:07,800
and catering that doesn't go away if you didn't have any business?

1009
01:17:07,960 --> 01:17:13,220
It's not a lot of fixed expense in bankwoods.

1010
01:17:13,220 --> 01:17:20,420
You carry two salary adoptations that will not go away that is fixed expenses that will not be able to be paid by profits

1011
01:17:20,420 --> 01:17:23,280
by your fixed overhead associated with your building.

1012
01:17:23,580 --> 01:17:27,300
You're still going to have $855,000 of a building expense.

1013
01:17:27,460 --> 01:17:29,200
That's where I look at early due benefits and how.

1014
01:17:29,900 --> 01:17:30,800
That's my point.

1015
01:17:30,840 --> 01:17:31,080
Exactly.

1016
01:17:31,560 --> 01:17:37,420
So the point is, if you do bankwits and you receive profits, it offsets your overhead.

1017
01:17:37,560 --> 01:17:37,800
I know.

1018
01:17:38,060 --> 01:17:42,080
What's happened is, when we've allocated out the cost here, and I'm just looking at that,

1019
01:17:42,080 --> 01:17:45,800
So we allocated the billing to $99,000.

1020
01:17:46,180 --> 01:17:52,200
We've got allocated G&A to $12, and we've got allocated payroll of $346.

1021
01:17:52,680 --> 01:17:59,240
I don't know if the $346 is a variable number or a fixed number, but certainly the fixed numbers are the allocated billing of the G&A.

1022
01:17:59,540 --> 01:18:03,420
If you didn't have anything to offset them, they have to go back into one of the other areas.

1023
01:18:03,480 --> 01:18:03,840
You're correct.

1024
01:18:04,400 --> 01:18:08,360
If you're going to observe them in another area, but you could simply take the 30% flow through from bank,

1025
01:18:08,360 --> 01:18:11,360
what's insane if you had, I don't mean to make it as simplistic as this.

1026
01:18:11,360 --> 01:18:17,180
If you have half a million dollars of revenue that does not materialize, you're going to see another 150,000 dollars worth of costs.

1027
01:18:17,380 --> 01:18:22,300
Yeah, I think that, and I think Kevin's on board with it, you've got two sets of costs in here.

1028
01:18:22,420 --> 01:18:24,460
You've got variable costs that are with a bank.

1029
01:18:24,500 --> 01:18:29,460
If something happens in a banquet, somebody has a job to do it, no banquet, no job.

1030
01:18:30,540 --> 01:18:36,800
But if they're in here and just being allocated but having to be paid anyway because there are fixed costs someplace else,

1031
01:18:37,600 --> 01:18:44,000
That's what I think Mr. Peabody's getting to here is even if you eliminated the revenue

1032
01:18:44,000 --> 01:18:47,080
and some of these things, some of these expenses are going to stay.

1033
01:18:48,040 --> 01:18:48,520
Correct.

1034
01:18:48,960 --> 01:18:50,300
And that's all we're trying to get ahead of him.

1035
01:18:50,440 --> 01:18:55,140
And I think Dana Danza-Yos is when you have the worst case scenario, you can build

1036
01:18:55,140 --> 01:18:57,040
from the worst case scenario up.

1037
01:18:57,640 --> 01:19:03,400
And that's what your budget would be on the best case scenario or even a middle case scenario.

1038
01:19:03,400 --> 01:19:10,120
But not to know the worst case, you could have a real shark come, come the end of December,

1039
01:19:10,220 --> 01:19:15,560
and it could be a significant financial shark, and I just, and I appreciate your support

1040
01:19:15,560 --> 01:19:18,740
because we just have to do it.

1041
01:19:18,800 --> 01:19:23,140
It would be financially irresponsible not to do a worst case scenario.

1042
01:19:23,220 --> 01:19:23,960
Yes, I have the question.

1043
01:19:24,260 --> 01:19:24,980
I'm going to be doing that.

1044
01:19:25,120 --> 01:19:27,960
I think that's what Chris and Steve are doing on a monthly basis.

1045
01:19:28,360 --> 01:19:32,640
You have to come to some agreement on the plan, and I'm fine if you want to eliminate the

1046
01:19:32,640 --> 01:19:39,500
the banquet revenue Mr. Merton's brought that up that's okay with me but the reality of it is

1047
01:19:39,500 --> 01:19:44,800
you still have some fixed cost in there and ultimately it either make it up by selling more

1048
01:19:44,800 --> 01:19:50,600
golf or something on the F and B side or if it isn't made up it just becomes a loss but all of

1049
01:19:50,600 --> 01:19:56,800
that still gets put together and Kevin is and Chris and you're part of that and Steve you're all part

1050
01:19:56,800 --> 01:20:03,660
of the same team here, it ultimately, I think, if we had a perfect world where we had extra

1051
01:20:03,660 --> 01:20:08,940
money in a fund here, that we said, okay, we're just going to erode the cash balance

1052
01:20:08,940 --> 01:20:13,200
in the fund, but we don't, so it's going to have to come back into the general fund,

1053
01:20:13,220 --> 01:20:15,420
and I think that's what Mr. Peabody's concern.

1054
01:20:15,660 --> 01:20:16,620
I think it's all over.

1055
01:20:16,760 --> 01:20:19,420
I think it's fair to say we're all all concerned about that.

1056
01:20:19,420 --> 01:20:24,840
You also have an omission statement that says they could lose 5,000 rounds.

1057
01:20:25,820 --> 01:20:31,500
If he says that, and it's possible, how can you budget 5,000 more rounds?

1058
01:20:31,820 --> 01:20:33,340
You need to start with a worst case.

1059
01:20:33,480 --> 01:20:36,300
Maybe it's 2,500 rounds, but you have to have.

1060
01:20:36,480 --> 01:20:38,180
I think golf is off to a great start.

1061
01:20:38,320 --> 01:20:38,920
I've been out there.

1062
01:20:39,060 --> 01:20:40,580
It's kind of hard to get a tea time point.

1063
01:20:40,780 --> 01:20:42,680
Well, that's only because it goes to a nine-door.

1064
01:20:43,220 --> 01:20:44,960
If I may, all points are great.

1065
01:20:45,120 --> 01:20:47,980
If I may, though, and I think there's a little bit of a miscommunication here,

1066
01:20:48,200 --> 01:20:52,620
the budget represents a loss of 6,500 rounds.

1067
01:20:52,620 --> 01:20:58,080
So, when the mission statement was written, Mr. Mayor, in your point is well taken and a good one.

1068
01:20:58,480 --> 01:21:04,600
But when the mission statement was written, the anticipation was 5,000 when we actually did the budget,

1069
01:21:04,940 --> 01:21:08,340
we've taken into consideration the 6,500 round loss.

1070
01:21:08,700 --> 01:21:10,620
I think you've done a great job in doing all that.

1071
01:21:10,860 --> 01:21:16,500
I think what it is is to catering, I think having a footnote on there, listen,

1072
01:21:16,980 --> 01:21:21,440
I want all that catering and then some fulfilled or bank, which whatever you want to call it.

1073
01:21:21,440 --> 01:21:25,760
I just think it's just, we just don't have a clue when it might happen.

1074
01:21:26,220 --> 01:21:27,840
Well, there's other issues, Richard.

1075
01:21:28,560 --> 01:21:33,960
Should the view be open, is the view able to break even now using the existing staff?

1076
01:21:34,100 --> 01:21:38,640
We don't know that answer, but if it's not, should it be not open for the next two months?

1077
01:21:38,800 --> 01:21:39,720
I don't know that answer.

1078
01:21:39,900 --> 01:21:43,960
Well, I think they don't know either until it happens and I think that that's what they're going to,

1079
01:21:44,160 --> 01:21:45,340
they said that's what they're doing.

1080
01:21:45,600 --> 01:21:49,660
They know what they're doing for business now, that probably gives them a pretty good indication.

1081
01:21:49,660 --> 01:21:56,940
But all I'm saying is I would like to see a worst-case scenario because I'm more conservative

1082
01:21:56,940 --> 01:22:03,260
I guess than others, and if everybody thinks just to give you an idea, Don Diego's is

1083
01:22:03,260 --> 01:22:05,700
down 40 percent of sales today.

1084
01:22:06,940 --> 01:22:08,100
Everybody's like that.

1085
01:22:09,260 --> 01:22:13,180
The zoo is budgeting being down next year, 45 percent.

1086
01:22:14,020 --> 01:22:19,640
I mean, I'm just telling you, all of the other places in this valley are aggressive

1087
01:22:22,140 --> 01:22:31,420
If I ask Mr. Rosen, does your budget not reflect an expectation that something's not going to be the same as it might have been?

1088
01:22:32,360 --> 01:22:38,020
Every one of the categories are budgeted down.

1089
01:22:38,500 --> 01:22:43,340
View, for instance, is budgeted $366,000 less than it was the last.

1090
01:22:43,360 --> 01:22:45,680
What is that like in a percent, Steve? Do you have an idea?

1091
01:22:46,820 --> 01:22:54,560
So if your total revenues are 2.6, so you look at that closer to 10% down.

1092
01:22:54,960 --> 01:23:00,580
The merchandise shop, the same as budgeted, a few hundred thousand dollars less from a profit standpoint.

1093
01:23:00,920 --> 01:23:07,920
So all I'm saying is we took our best guess as to what the downside would be.

1094
01:23:08,180 --> 01:23:12,480
I hear you loud and clear, and if what you're looking for is for us to come back.

1095
01:23:12,480 --> 01:23:19,180
And I don't know how, Mr. Cityman, if you want to document this, because I don't know what it is that you're looking from an approval step.

1096
01:23:19,360 --> 01:23:29,440
But we would be delighted to take out the catering revenue through December and show you what that potential impact could be.

1097
01:23:29,820 --> 01:23:30,260
Absolutely.

1098
01:23:30,660 --> 01:23:31,760
I think you should look at everything.

1099
01:23:32,120 --> 01:23:35,480
I think we're looking at a 12-month period here, right?

1100
01:23:35,760 --> 01:23:37,640
We're looking July to next June.

1101
01:23:37,980 --> 01:23:38,100
Correct.

1102
01:23:38,100 --> 01:23:43,380
And so, you, I mean at some point in time, none of us know what that will be, but when

1103
01:23:43,380 --> 01:23:49,620
people are, if they're scheduled in this calendar year, I guess you'll start to find

1104
01:23:49,620 --> 01:23:55,120
out, I guess there's points where they have to communicate with you, they have a deposit

1105
01:23:55,120 --> 01:23:56,680
they will lose or something, right?

1106
01:23:56,700 --> 01:23:56,840
Right.

1107
01:23:57,740 --> 01:24:03,780
And so, I think as you get that, you'll be updated, but I think this is the job of the

1108
01:24:03,780 --> 01:24:06,580
our chief financial officer to manage the cash and the money.

1109
01:24:07,180 --> 01:24:08,660
And I don't want to do his job.

1110
01:24:09,240 --> 01:24:12,620
And so I think the two of you all can work together.

1111
01:24:12,620 --> 01:24:17,220
And if I think that I'm hearing that it's really up

1112
01:24:17,220 --> 01:24:20,660
to the staff if they want to me to want to revise the budget.

1113
01:24:20,660 --> 01:24:26,080
But if you leave it as is, to me, I'm

1114
01:24:26,080 --> 01:24:28,740
going to hold you accountable to pretty much what's in there.

1115
01:24:29,320 --> 01:24:32,240
When you say hold accountable, I hear you loud and clear.

1116
01:24:32,240 --> 01:24:38,120
But the reality is I just want to go on a record basically saying I have no idea if the government closes the state

1117
01:24:38,120 --> 01:24:43,660
You can hold me accountable, but it's not happening. No, Steve. I want to say it right and I think you get what I mean

1118
01:24:43,660 --> 01:24:50,220
But I'm saying we're better off to lower the numbers in the budget and take a different lower deal

1119
01:24:50,220 --> 01:24:56,960
I mean it it's it's in your it's in all of our best interest to do that because if we do better

1120
01:24:56,960 --> 01:24:58,800
First of all, we'll feel better

1121
01:24:58,800 --> 01:25:05,820
Okay. It's just natural. I mean, I don't know. I've got a board of directors too and they look at that budget number.

1122
01:25:05,860 --> 01:25:10,200
I just keep telling them it's a planning number. I can't get them to focus off of that.

1123
01:25:10,300 --> 01:25:14,020
They like to look at actual to budget and it's kind of common in every place.

1124
01:25:14,640 --> 01:25:19,000
And so you go, well, don't be too optimistic on the budget.

1125
01:25:19,320 --> 01:25:24,520
And then not here because on the other hand, people get disappointed with that.

1126
01:25:24,520 --> 01:25:29,320
So I think just take another look at it you got time you said you were going to do that anyway Kevin. So

1127
01:25:30,740 --> 01:25:36,960
I was I would just defer that we we could to me I I could adopt this today

1128
01:25:36,960 --> 01:25:43,560
I could but but I know you don't want to but I could be four to one but well I could not today

1129
01:25:43,560 --> 01:25:49,460
But I'm really looking for a revised budget comes July. I think you're going to have some more information

1130
01:25:49,460 --> 01:25:50,700
I'm in the same spot

1131
01:25:50,700 --> 01:25:53,880
I'm asking mine board to adopt a budget.

1132
01:25:54,100 --> 01:25:58,820
I'm closed and I'm trying to figure out what my attendance might be and how to do that.

1133
01:25:59,360 --> 01:26:00,940
And so I don't know how to do that.

1134
01:26:01,340 --> 01:26:04,300
So I'm doing the same thing kind of what Mr. Rosen is doing.

1135
01:26:04,580 --> 01:26:10,380
I'm putting a budget back, I'm past history, but I've told my board that in July, as I get

1136
01:26:10,380 --> 01:26:14,640
more information, and every day you get something different, I'll have a new one.

1137
01:26:16,020 --> 01:26:18,080
Okay, well let's go ahead, go ahead.

1138
01:26:19,120 --> 01:26:20,780
Thank you, Mr. Mayor.

1139
01:26:21,680 --> 01:26:22,860
No, it's been a good one.

1140
01:26:23,060 --> 01:26:28,160
And I think that in, you know, to Mayor Peabody's question, it's a good one as far as

1141
01:26:28,160 --> 01:26:28,800
worst case scenario.

1142
01:26:29,180 --> 01:26:33,680
But worst case to us, maybe them shutting down the golf course again for a period of time.

1143
01:26:33,940 --> 01:26:40,080
Well, that's a different, I think the worst case you're doing is just assuming that COVID

1144
01:26:40,080 --> 01:26:45,580
is not going away and it's staying at a level at about what we know now because that's

1145
01:26:45,580 --> 01:26:46,540
what they're telling us.

1146
01:26:46,540 --> 01:26:50,580
And I think that what we would look to do is, you know, as long as we're able to reflect

1147
01:26:50,580 --> 01:26:56,000
decreases in merchandising, in banquets, and I think it's very reasonable to say we're

1148
01:26:56,000 --> 01:26:57,720
not going to have any banquets until the end of the year.

1149
01:26:58,260 --> 01:27:02,180
And that's something that you could approve tonight, or this afternoon, when you come back

1150
01:27:02,180 --> 01:27:02,680
to us.

1151
01:27:03,140 --> 01:27:04,560
There's no rush on this.

1152
01:27:04,660 --> 01:27:05,920
No, but there is no rush.

1153
01:27:06,060 --> 01:27:06,540
No, there isn't.

1154
01:27:06,640 --> 01:27:07,960
But then a number of rounds.

1155
01:27:08,420 --> 01:27:11,840
So we can bring back, we just want to know if there's certain expectations of what you're

1156
01:27:11,840 --> 01:27:12,380
looking for.

1157
01:27:12,500 --> 01:27:12,620
Yeah.

1158
01:27:12,860 --> 01:27:14,320
You come back and tell us.

1159
01:27:14,580 --> 01:27:14,780
Yeah.

1160
01:27:16,300 --> 01:27:19,880
We're not going to sit. We're not going to sit you budget. We're trying to help you. Understood?

1161
01:27:20,880 --> 01:27:28,040
Okay. We'll move off of that. My next one for you, and I'm not going to do all of them. I'll put them in writing and you, Chris, the master plan.

1162
01:27:28,380 --> 01:27:30,920
How much do you anticipate the master plan is going to cost?

1163
01:27:32,940 --> 01:27:39,340
I don't want to fathom a guess, but you guys have put it in. You're going to do a master plan. You don't have any idea what it's going to cost.

1164
01:27:39,340 --> 01:27:41,700
for it. First, you're not going to move forward without having

1165
01:27:41,700 --> 01:27:45,280
understanding the cost. Okay. So right now we don't know. I would, I'm

1166
01:27:45,280 --> 01:27:49,020
going to guess, I just, as a guess, it'll be under $100,000. Okay.

1167
01:27:49,140 --> 01:27:52,740
And the purpose of the plan, again, so look at all operations,

1168
01:27:53,620 --> 01:27:57,120
efficiency, staffing, other activities that are happening at the

1169
01:27:57,120 --> 01:28:00,860
golf resort. Okay. My question is, you, in this plan, you

1170
01:28:00,860 --> 01:28:04,040
think of doing anything major to the golf course over the, I think

1171
01:28:04,040 --> 01:28:07,300
that would be a two to four years. Next two to four years, perhaps

1172
01:28:07,300 --> 01:28:10,580
No, I think it'll be a discussion that may come up as a part of that, though.

1173
01:28:10,920 --> 01:28:12,360
That wasn't my question, though.

1174
01:28:12,440 --> 01:28:17,640
My question was, do you just say, because I'll tell you, and I'll just end it with this.

1175
01:28:17,820 --> 01:28:18,940
Yeah, you don't have the money.

1176
01:28:19,840 --> 01:28:25,180
No, I agree, but it also depends on what exactly is being, if any changes are made.

1177
01:28:25,720 --> 01:28:30,040
Okay, well, that'll be the next counsel, Dana and Richard.

1178
01:28:30,800 --> 01:28:31,240
Thank you.

1179
01:28:34,560 --> 01:28:38,720
Just out of, you just like the rest of all of government, let's give it to the next guy.

1180
01:28:40,180 --> 01:28:41,720
I would do the best we can.

1181
01:28:42,300 --> 01:28:46,900
Then I can come sit in the audience and pick on you and Dana, so that'll be easy.

1182
01:28:47,400 --> 01:28:50,520
Zero-based staff, Steve. I'm the only thing I'm going to say about zero-based staff.

1183
01:28:50,840 --> 01:28:52,220
I don't think you guys get it.

1184
01:28:52,560 --> 01:28:58,380
And I'm just going to leave it at that by saying zero-based staff is what does it take on a daily basis?

1185
01:28:58,380 --> 01:29:05,120
basis. How many people to open the doors? That's so that's base staff. And how much does that cost?

1186
01:29:05,280 --> 01:29:09,880
That's what zero-based staff it is. And that's all I'm going to say. You don't even have to respond.

1187
01:29:11,800 --> 01:29:18,040
Okay. Okay. On the organization charts, I would like to see on the organization charts. How many people

1188
01:29:18,040 --> 01:29:25,760
in each category, for instance, you have Joe's area, and you write Valley, Stodders, and so on? How many?

1189
01:29:26,320 --> 01:29:28,860
Do you? So just you don't have to answer that today.

1190
01:29:28,860 --> 01:29:29,840
Why do we have to know that?

1191
01:29:29,840 --> 01:29:30,260
You had that.

1192
01:29:30,260 --> 01:29:33,200
It's because I have a question and I have a right to ask the question.

1193
01:29:33,580 --> 01:29:33,980
That's a nice question.

1194
01:29:33,980 --> 01:29:34,820
It's getting into the weeds.

1195
01:29:35,640 --> 01:29:35,720
No.

1196
01:29:35,980 --> 01:29:37,120
That is not in the weeds.

1197
01:29:37,560 --> 01:29:42,740
If you want to understand this entire plan, you should have had a lot more questions, Mr.

1198
01:29:42,840 --> 01:29:43,140
Mertens.

1199
01:29:43,620 --> 01:29:48,000
And you don't, and I'll just, I could ask you 100 questions and you, and all I want to

1200
01:29:48,000 --> 01:29:52,460
do is I'm trying to get it so that when we finish this discussion and we finish this

1201
01:29:52,460 --> 01:29:56,900
strategic plan. Everybody on this day is, understands it, whether they're

1202
01:29:56,900 --> 01:29:59,880
interested, not interested, but at least they will

1203
01:30:00,000 --> 01:30:05,180
And I understand the business and what it takes to run this business. If you don't

1204
01:30:05,180 --> 01:30:11,980
interested, that's not a problem. And I think I'm just going to quit at that. The food

1205
01:30:11,980 --> 01:30:16,320
trucks is a whole other discussion we can have that separately. And I will provide my

1206
01:30:16,320 --> 01:30:22,160
questions to you to Chris, and then you can just give them back and give them back to

1207
01:30:22,160 --> 01:30:27,600
all the council. Are there any other issues? Does anybody have a committee,

1208
01:30:27,600 --> 01:30:28,420
Kennedy, Skimbley, anything?

1209
01:30:28,760 --> 01:30:29,920
No, nothing to report.

1210
01:30:30,820 --> 01:30:31,200
Richard?

1211
01:30:31,780 --> 01:30:36,000
Yes, I attended the SEVAP meeting by telephone.

1212
01:30:37,000 --> 01:30:39,940
And I think Mr. Merton's brought that up.

1213
01:30:40,040 --> 01:30:41,480
And we've been talking about that.

1214
01:30:41,700 --> 01:30:44,420
It seems like there's still a lot of business activity

1215
01:30:44,760 --> 01:30:48,340
in the Palm Springs area of people looking maybe to even

1216
01:30:48,340 --> 01:30:52,640
relocate here and some of their employees looking to

1217
01:30:52,640 --> 01:30:53,660
relocate here.

1218
01:30:54,660 --> 01:31:03,820
just simply now with appears to be I'll say at home work that people are

1219
01:31:03,820 --> 01:31:09,140
redefining where they might live and rather than you know take that house in

1220
01:31:09,140 --> 01:31:13,480
Orange County and work in Anaheim or something they could live out here and

1221
01:31:13,480 --> 01:31:17,760
still work in Anaheim. So I think that we're gonna see some things there that are

1222
01:31:17,760 --> 01:31:23,640
starting to shift around and so there was a lot of talk about that and so lots of

1223
01:31:23,640 --> 01:31:28,500
still interesting things happening and of course I think a lot of activity here even

1224
01:31:28,500 --> 01:31:33,180
in the summer for the Airbnb's I think a lot of those are already books so we're seeing

1225
01:31:33,180 --> 01:31:38,800
some different kind of things that we might normally have seen so that's it.

1226
01:31:38,960 --> 01:31:39,560
I think that's it.

1227
01:31:39,660 --> 01:31:40,200
Ted, go report.

1228
01:31:41,040 --> 01:31:41,400
Dana?

1229
01:31:42,120 --> 01:31:43,040
Nothing to report.

1230
01:31:43,180 --> 01:31:43,320
Okay.

1231
01:31:43,480 --> 01:31:44,120
I don't have anything.

1232
01:31:44,320 --> 01:31:47,800
We will adjourn to July 23rd or sooner.

1233
01:31:48,540 --> 01:31:48,900
Thank you.