[0:07] 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

[0:32] and one nation under God of the God.

[0:35] The Indivisible with liberty and justice for all of them.

[0:39] Can we do the roll call, please?

[0:42] Council Member Murtons.

[0:43] Present.

[0:44] Council Member Music.

[0:45] Present.

[0:46] Council Member Balacco.

[0:47] Present.

[0:47] Mayor Pro Tem Reade.

[0:49] Present.

[0:50] Mayor Peabody.

[0:51] Present.

[0:52] Can I have a motion to approve of the final agenda?

[0:55] So moved.

[0:55] Mr. Balacco.

[0:57] Second Kimberly, all in favor.

[0:58] I am.

[1:02] Angelica, you have something that you want to say.

[1:05] That is right.

[1:05] Yes.

[1:06] Mayor and Councillor, there is an addendum to the agenda.

[1:09] Consent Item 4 N relating to COVID-19 City Hall reopening policies and procedures.

[1:15] Additional item to Consent Item 4C was added relating to Washington Street and Fredwearing

[1:20] Drive, triple left turn project right away purchase.

[1:23] the notice and material of the Addendum were placed on the city's website and also the three locations throughout the city. Thank you.

[1:30] Okay, before we get to the public comments and it has a couple.

[1:35] I just want to quickly bring you up to date on the meeting of the mayors with the county supervisor today.

[1:42] The COVID is increasing.

[1:44] The governor just shortly goes said that masks are now mandatory in the state and we need

[1:53] the cooperation of everybody.

[1:55] Our city has been very good as far as the residents.

[1:58] We still have 16 cases and no deaths, but we're having problems in the valley, even though

[2:06] the nine cities all agreed to have the same policies, with enforcing the mask issue.

[2:11] And it is a serious problem in our city, CVS, had told us that they weren't going to enforce it.

[2:20] In the city of Lakinta Home Depot said that we have some restaurants in Palm Desert that are breaking all the rules

[2:28] as far as massive concerns. So in this meeting this morning with the supervisor, we asked everybody to get on board and

[2:35] in their cities enforce the policy because it is a problem and it's a very

[2:40] confrontational problem unfortunately. Right now hospitals are 63% occupied

[2:46] with all patients and let me clarify that's all patients not just COVID patients

[2:51] so we're still okay there but we we definitely have to watch it very closely so

[2:56] again I will ask our residents to continue doing what they're doing they've

[3:03] done a great job so far. I would ask the council at some point to support what will

[3:09] probably be a regional policy regarding not only the mass but the distancing because

[3:15] it is a problem and we're trying to get everybody together on it so that it will probably

[3:20] come back where we ask for your support on a regional policy, regional policy being the

[3:26] fourth district. With that, we'll go to public comments. Anna, I think you have a couple.

[3:35] 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.

[3:53] I will also take care of the one for the consent calendar and that is for item 4F regarding the nepotism policy.

[4:02] He requested the council not adopt the revisions to the nepotism policy as it removes the,

[4:09] in quote, no person shall be employed in a position directly supervised by a relative nor

[4:15] members of the immediate family being employed in the same department language.

[4:23] And of course, all of these public comments in their entirety were passed on to Council this morning.

[4:28] Thank you.

[4:29] Thank you.

[4:30] And we'll go to the consent calendar, and it's all met as listed on the consent calendar.

[4:35] Considered to be routine, it will be passed by one vote.

[4:38] There will be no discussion of these items, unless the council member or member of the public

[4:42] request specific items be discussed separately.

[4:45] Items removed from the consent calendar will be heard immediately.

[4:49] We do not have any public comments other than what Anna just read.

[4:53] So I would ask, is there any item that one of the council members wants to pull?

[4:58] Four F, please.

[5:01] Four F. Okay.

[5:02] Any others?

[5:03] No.

[5:04] Okay.

[5:05] Okay, then let's, we'll vote on A through,

[5:09] vote on A through M except F.

[5:15] Can I have a motion, please?

[5:17] So I'm moved.

[5:17] Second?

[5:18] Second.

[5:19] All in favor?

[5:20] Hi.

[5:21] All the five to nothing, and Ted, you have item F.

[5:25] The only thing I'd like to ask consideration

[5:27] from my fellow council members is to add probably as a separate policy,

[5:33] 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.

[5:50] 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.

[5:58] Okay. I see what you're saying. So I would just like to extend the prohibition,

[6:05] if you will, of serving, to include relatives of council members serving on committees and commissions.

[6:12] Okay. But if there isn't one today, but there is one in November, are you saying that

[6:18] that person, even though they might be appointed today, would have to withdraw in November?

[6:25] I'm not saying, I'm not sure that I'm saying that we have to the city attorney, although

[6:32] it would seem to me that just as a matter of routine and course that if you are a relative

[6:40] of a council member you would not serve on a committee or a commission.

[6:46] A relative would that assume you're talking that could be a spouse?

[6:50] Yes.

[6:51] Okay, and you're talking because there's relatives and there's spouses and as it's defined in our policy now

[6:58] It's it goes through a number of degrees of

[7:02] That's that's what I'm talking about

[7:04] Jeff

[7:05] So the issue that's been identified is whether we want to apply it only

[7:10] Prospectively or retroactively in other words if we have a commissioner say on the planning commission

[7:16] In their immediate family member gets elected in November

[7:18] or how are we going to deal with that situation?

[7:22] And there are a couple of different options.

[7:24] One is you could say the commissioner

[7:25] would need to resign.

[7:27] You could also have it only apply prospectively

[7:31] in the future so that commissioner could serve

[7:33] out their term and have it only apply to new appointments.

[7:37] So that's within the council's discretion.

[7:41] Opinions, Dana, I got an opinion.

[7:43] Well yeah, I wouldn't give them the option.

[7:46] 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,

[7:53] why don't we just say it terminates if a relative has to find in our policy becomes a member of the council?

[8:06] Is that covers?

[8:07] You could be that.

[8:08] And what would that be again?

[8:11] It would basically provide for automatic termination of the commissioner's appointment upon

[8:16] a election of one of their means.

[8:20] That would probably be more appropriate.

[8:24] Assuming office.

[8:26] Assuming office.

[8:28] So does that have to be a motion or I guess it would have to be a motion then to add that

[8:33] to correct.

[8:34] I think it's within the general purview of this agenda item so you could do that today and

[8:39] Can you give direction to staff to add that language to this policy?

[8:43] I would make that motion.

[8:44] If we can, for Claire.

[8:47] Would that be in this section, this is for the personnel manual.

[8:53] So I'm wondering if this should apply to this separate nepotism,

[8:57] have separate nepotism language perhaps in the council policy manual,

[9:02] not the employee personnel manual.

[9:04] That'd be a better place for it.

[9:06] That's what I was thinking in the first place.

[9:09] So I would move that it be placed into the council manual.

[9:14] Mr. Burns, can we ask them to come back at the next meeting?

[9:17] I think that's a good idea, Data.

[9:20] I'm not sure why, but yeah.

[9:23] Yeah, that's not a bad idea.

[9:25] Bring the policy back.

[9:26] We've got to adopt this one for the personnel rules, if you wish, and bring back a separate one

[9:30] for the council policy book.

[9:31] Correct, so we'll just approve what this one is and bring it back in July.

[9:36] Wonderful.

[9:36] Is everybody okay with that?

[9:38] Yes.

[9:39] Okay.

[9:40] Then I have a question.

[9:42] You have a question.

[9:42] I just want, and it's not regarding item F.

[9:44] I'm so sorry to do this.

[9:46] I may have misheard when the motion was made for consent.

[9:49] Was it for M like in Michael or was it for N like in Nancy?

[9:55] It's for the whole, it's for all of them.

[9:57] For all of them so N like in Nancy.

[9:59] Thank you very much.

[10:00] I unfortunately don't have N in my book.

[10:03] No, we just added it.

[10:04] That's what she added.

[10:05] Okay.

[10:05] 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.

[10:12] Move approval.

[10:13] Second?

[10:14] Okay, all in favor?

[10:15] Aye.

[10:16] Five to nothing.

[10:18] 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.

[10:32] It was going to deal with that.

[10:33] Thank you, Mr. Mayor.

[10:34] Mr. Counsel, I'll take a lead on this and allow the city attorney, Ms. Abelot and Mr.

[10:39] Berg answer any questions you may have.

[10:42] The council is aware that we have a planning commission and an architect landscape committee.

[10:47] And unfortunately over the years, the ALC, as we call it, has seen a reduction in meetings

[10:52] or a need to meet.

[10:54] And so we are recommending in order to provide efficiencies as well as, you know, when applicants

[11:00] We can supply for permits now, we can try to expedite their process, is combine the ALC with the planning commission.

[11:07] We think it's much more efficient for operations, staff time, and it shows that we are a business friendly community, so

[11:13] 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.

[11:21] And so what we'll be doing is two existing ALC members who are not terming out will

[11:27] roll over to the planning commission and that'll fill six of the seven positions that

[11:33] are full.

[11:34] There's another report after this, talking about a seventh position.

[11:37] In addition, because we do think it's important that there is some review of items, we're also

[11:42] performing what's called a design review committee.

[11:45] This body will be responsible for working with the community development director.

[11:49] and at times there are going to be items that you know the director may have

[11:53] administrative approval on but we'll need a subcommittee of the planning

[11:57] commission that we're called the design review committee to review those

[12:00] decisions before they are administratively approved. And so we're asking for your

[12:04] introduction of the ordinance and move forward as at this time. Okay no public

[12:09] comments we have one.

[12:15] Language regarding wall fence planter fountain and

[12:19] The similar architectural amenity in the proposed ordinance is unclear and she has concerned

[12:25] these remodeled changes are now going to be administratively reviewed rather than by

[12:30] the design review committee.

[12:32] Thank you.

[12:32] Now, City Council, comments?

[12:35] Yes.

[12:36] Go ahead.

[12:37] I think this is the right place to do this.

[12:40] I would like to ask fellow council members to consider adding for one year and eighth position

[12:46] to the Planning Commission.

[12:47] 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.

[12:58] 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.

[13:10] 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.

[13:22] 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.

[13:33] Okay.

[13:34] Let me add to that, when we interviewed them and Dana, I think you remember, we were going

[13:39] to take the two women from the architectural committee.

[13:43] When Ted and I went through interviewing these people, these two particular gentlemen have

[13:47] an expertise that the next council is going to need badly, both not only in the general

[13:53] plan but housing.

[13:54] And one of them is an expert in housing and the other one is definitely an expert in general

[14:00] plan.

[14:00] 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.

[14:20] So, that's why that's another reason why we recommend it.

[14:23] So I would like to make that motion.

[14:27] Okay, and do I have a second, second by Richard, all in favor?

[14:32] Aye.

[14:33] Aye.

[14:34] Okay, so that takes care of that once it will move to item B.

[14:40] Right, just be sure, Angelica, you got the motion was to approve the item with the addition.

[14:45] Right, and then we'll move to item B which is annual appointments to commission committees

[14:50] and board.

[14:51] But is anybody going to know who's going to speak, Chris, on this issue?

[14:54] Hi, I am.

[14:55] You are.

[14:56] Okay, Angelica.

[14:57] So, good afternoon, Mayor and Council.

[14:59] Before the-

[15:00] 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

[15:29] outlined in your staff report. Staff recommends council reappoint the five committee members

[15:35] with one term remaining on their service and also Councillor interview, I'm sorry, and

[15:41] Councillor interview at how committees recommends the council appointments to the residents

[15:45] as outlined in your staff report to serve on the various commissions and committees and I am

[15:49] available for any questions.

[15:51] Okay, do I, I don't have any public comments?

[15:54] No.

[15:58] I just want to thank everybody who submitted their applications and it was really a tough

[16:05] decision on all accounts and I think that who we have selected are going to be positive

[16:15] for our community or city so thanks to everybody.

[16:20] Anybody else have a comment, Dana?

[16:23] No, I know that everyone did a lot of work.

[16:30] Okay, Richard, any comments?

[16:32] Nope.

[16:32] Dead?

[16:34] Oh.

[16:34] Can I have a motion?

[16:36] So moved.

[16:37] Okay, second.

[16:38] Second.

[16:38] Richard, all in favor?

[16:40] Aye.

[16:41] Aye.

[16:41] Okay, so we will move on to the next item which is item C.

[16:48] Indian Wells, Gulf Resort, Annual Plan.

[16:52] Steve, why don't you come up and...

[16:54] Or something that you're going to put first.

[16:55] I'm going to present first, if I may.

[16:58] Thank you, Mr. Mayor, members of the City Council.

[17:01] So the format for this item will be that both Kevin and I

[17:04] will be providing you with a presentation

[17:06] on the operations, finances, and next steps

[17:10] with C-Rose and the General Manager of the Indian Wells

[17:12] Gulf Resort available for your more detailed questions.

[17:16] First, let me start off by saying that for the last several months, both your city staff

[17:21] and others have been putting a lot of effort into better understanding the operations at

[17:26] the Gulf Resort and working to see how the impact of COVID will have on these operations.

[17:32] I want to thank Steve Rose and his team for all their extra work and also Kevin McCarty

[17:36] and Peter Castro for their work as well.

[17:39] The COVID has impacted operations in some of our expectations for our finances and

[17:45] And that will be one of the focuses of today.

[17:48] Before I have Mr. McCartney come back to talk about the finances, I do want to talk about

[17:53] some of the overall discussions we've been having these last several months and some

[17:57] of those outcomes.

[17:58] First is, I already shared, we've had a better understanding of the operations and the finances

[18:03] at the golf resort.

[18:05] And it's our hope that with this additional work that we've been putting forth, we'll be able

[18:09] to hopefully provide better service to our residents as well as respond to council questions.

[18:15] and other inquiries on the operations of the facility.

[18:19] During this time, we've developed new more detailed financial reports.

[18:24] We've allocated payroll that we believe to the various departments where they should be reflected,

[18:28] as well as allocation of building maintenance and administration as well.

[18:33] As you recall, at our last meeting, it was suggested that City Council members submit some questions

[18:39] to be, you know, responded to by both the golf resort as well as city staff and those

[18:45] questions have been provided to each of you in more detail as well as been made available

[18:50] to the public should they wish to get received copies of those.

[18:54] One of the items we do want to have discussion with briefly with you is I have been asked

[18:59] about the golf resort rather is a amenity or a business and I would argue that it's combination.

[19:05] It's a hybrid.

[19:05] It's both.

[19:06] And what I mean by that is the facility as we are quite aware operates is our community center

[19:11] We have special events there, but it's also a recreational facility where folks that are enjoy golf and other activities

[19:18] So I think that we realize that it is a community amenity, but at the same time it is a business

[19:25] Both the restaurant, banquet facilities and the golf operations are made up to generate revenues to help offset the cost of operation at facility

[19:33] as a city of enterprise.

[19:36] One of the discussions has been brought up as regards to the golf benefit that's provided.

[19:42] The discount on golf that is provided as a quality life amenity here in Indian Wells.

[19:49] I think of the $2.5 million, $1.6 million in potential subsidies,

[19:54] how has been termed in the past, has been provided to the golf operations.

[19:59] And from a staff perspective, that is a policy decision of the City Council.

[20:04] And as long as the City Council wishes to treat it as that initial amenity,

[20:09] we will continue to provide that as a financial support to the golf resort.

[20:14] And do you mind that it's not actually Trune's responsibility to make up that difference?

[20:19] It is a decision of the City to provide this benefit.

[20:22] Trune and their operations and city's expectation is we wish to start seeing the facility operate

[20:28] where it pays for its day-to-day operations and the capital expenditures.

[20:32] And we believe that we, you know, even in these tough times with COVID,

[20:36] it allowed us the opportunity to refocus energies and efforts to see

[20:40] how we can best make that a reality.

[20:44] Moving forward, there's going to be a lot of different recommendations in that.

[20:48] One of those is there is a desperately a need to look at

[20:52] review the management agreement between the city and our operator.

[20:55] If you recall the management agreement was put in place or redevelopment times and during

[21:01] redevelopment times money was a little bit more flush.

[21:04] And it wasn't a requirement of the city to have the general fund pick up that tab.

[21:08] So I think that that's going to be one of the things a focus over the next several months

[21:12] is how we can best review the management agreement, start making it where performance measures

[21:18] and goals are more in line with a business operation being profitable.

[21:26] As we move forward, if I bring up a power, I just want to talk to you about the steps

[21:30] we're going to be taking moving forward and there are several of those.

[21:40] So here are the steps that we're going to be doing taking moving forward.

[21:43] First, U.S.

[21:44] City Council will be receiving a month review of the budget and assumptions, okay?

[21:48] So monthly, you get a financial report from the golf resort, which is funneled through

[21:52] city staff.

[21:53] We'll make sure that in that, we'll be making a review of those assumptions.

[21:58] There's about a half million dollars of capital replacement plan for the coming year.

[22:02] We wish a city staff to help manage that a little bit better.

[22:06] And so we're going to be working closely with Trune that replacement only occurs for those

[22:10] necessary items that are needed in order to help try and reduce our capital expenditures

[22:15] for the year.

[22:17] Staffing increases that are presented in the budgets are actually not increased.

[22:21] See me, the staffing levels as presented in the budget is what our expectations are.

[22:25] and any additional staff and moving forward, we wish to have true and provide us

[22:30] off-study revenue composed before being approved. So that way we are able to

[22:34] help control our labor costs. We do need to bring back for discussion of the

[22:39] future meeting perhaps, a couple of items. First is valley parking. During COVID, as

[22:44] you can imagine, I'm sure you, like I don't want to have strangers getting into my

[22:49] vehicle who may be exposed to COVID or getting from vehicle to vehicle. So at

[22:54] At this time, we are not planning or budding for valley parking.

[22:57] Once we know more about what's going on with COVID,

[23:01] and when we find an opportunity to bring valley back,

[23:04] we will do so.

[23:05] But we're also going to look at the opportunity

[23:07] of rather than us staffing it,

[23:09] if it makes sense to have an outside company do that as well.

[23:11] So we'll provide you options in the future.

[23:15] Unemployment insurance, as you're quite aware,

[23:17] many folks are under receiving unemployment payments.

[23:21] We are anticipating that as COVID is expiring, as people are going back to work, it has been

[23:27] typical that the state comes back to businesses and says, okay, now we need to increase your

[23:31] unemployment rates in order to help re-appline the account.

[23:35] And so there was about $80,000 of unemployment insurance budgeted for, staff made the recommendation

[23:42] to remove that $80,000 because we don't know it will be more or less, and we want to bring

[23:47] it back to you so you can make that decision when you receive that information.

[23:52] Also staff is going to be looking at ways we can reduce our fixed cost over at the facility.

[23:57] One of which is the Energy Efficiency Study that you have set as a priority and we'll be

[24:00] looking at that for the coming year.

[24:03] And we will be working with Trune to provide clear strategies to help improve the cost of

[24:08] sales of items.

[24:18] Next is we want to make sure we complete one of your city council strategic planning goals

[24:22] which is the development of a master plan which we will do the RFP over this summer

[24:27] and hope to be given the work on the master plan in the fall.

[24:31] We want to look at this as an opportunity to improve guest experience,

[24:36] increase golf rounds, and covers at the restaurant.

[24:40] Staff, including myself, thinks is a very important project to move forward on

[24:44] because this document will assist the city in developing better management guidelines

[24:48] and performance measures for our true and contract.

[24:51] And I say true and concrete, it's really the management agreement.

[24:54] True just happens to be the consultant on board for that.

[24:57] That'll include a review of cost of sales, percent of payroll, financial return to each department.

[25:03] In addition, we'll be examining operational efficiencies and staffing in each department.

[25:08] We will conduct site evaluation and utilization of existing facilities and future needs.

[25:13] See how we can maximize the property and maximize opportunities for revenues.

[25:18] 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.

[25:26] 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.

[25:33] But most importantly, we want to make sure our residents, hotels and visitors participate and provide feedback into this process.

[25:39] Next

[25:44] slide, I want to show this to the final one is a discussion about the marketing plan.

[25:50] City staff, the golf course operator Trune, as well as the CVB, which is a Greater Palm Springs

[25:57] Convention Visitors Bureau, has been meeting and having a discussion.

[26:01] We met earlier this week and have developed some strategies to help increase and hopefully

[26:06] provide more people into our hotels, but also and refocus the CVB's efforts to help bring

[26:12] golfers also to the golf resort. Their focus has been really on the hotels, but we want

[26:18] to try and find opportunities that we are bringing not just patrons to our hotels, but

[26:22] also patrons to our golf course. What we found was very interesting in the discussion

[26:26] is based on a survey, the CBB has data that says that currently 70% of people want to travel

[26:33] locally this calendar year. Okay, and they're willing to do up to a seven hour drive.

[26:38] And so the marketing efforts of the CVB, which we'll coincide with that of our marketing

[26:44] efforts as a city, and as the golfers will work a collaboration, try and focus on that

[26:49] market as well.

[26:50] Because we think that there's a great opportunity to bring those folks here.

[26:54] Also Trune is implementing new strategies for the view and food truck, there are going

[26:59] to be a hosting additional special events, focusing on new menu, one exciting one to me is

[27:04] and many other activities.

[27:07] And I already talked about it, but I want to make sure I mention the collaboration with

[27:11] the CVB, our local hotels, and the city to increase golfers to the resort.

[27:16] Because as mentioned previously, there are some gaps in the T-sheet and we want to see if

[27:21] there's opportunities to fill that gap.

[27:25] In addition, city staff will be more active in our management of the facility.

[27:29] We will be having monthly tours of the facility to review the maintenance and the condition

[27:35] of the courses as well as the building itself.

[27:38] We will have the golf committee out there on a semi-annual basis.

[27:42] We actually had a tour a few months ago with the golf committee and they thought that would

[27:46] be a great idea that they should be out there a couple of times a year just to see what's

[27:49] going on as well as regular agronomy updates to the golf committee.

[27:53] So that the golf committee understands what work, true and is doing on the golf course.

[27:57] And lastly, and most importantly, is making sure we improve communication with each of you.

[28:03] Future decisions on operations, including what hours are going to be open, golf course closures, et cetera,

[28:09] need to make sure they're being conveyed to you in a timely manner.

[28:12] 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.

[28:19] So we'll make sure to improve communication between true and

[28:22] myself and from me to each of you.

[28:25] And we'll do that via the Friday with the report.

[28:28] And if there's any need to agenda something,

[28:31] we'll make sure that you have the opportunity to address it.

[28:33] So it'll be in a similar format where we'll share the information with you.

[28:37] And if you wish to agenda us, let me know.

[28:39] We'll make sure we address that.

[28:42] So before I do that, I'm going to, or before I turn over to Kevin

[28:46] to do the budget presentation.

[28:48] I just want to make sure that the presentation about the here from Kevin

[28:51] Kevin is a snapshot of what we believe and know of the operations as of today.

[28:56] There's some uncertainties that you'll be hearing from both, yeah, it's several uncertainties.

[29:02] Thank you.

[29:03] From both Kevin and Mr. Rosen as we go through our presentation.

[29:07] So with Al turnover, Kevin who wants to talk to you a little bit about the budget.

[29:10] If I may, Kevin, just before you start, I just want to make a comment.

[29:14] I appreciate the report that you just gave us, Mr. City Manager, and I just want to comment

[29:20] that it came to my attention that last week that the city manager and

[29:25] finance director each spent over 20 hours 20 hours working on this

[29:30] report and this information well over half of their work week. That was

[29:37] basically caused by the questions asked by two council members. Now we do have

[29:43] a policy on this council and in this case it worked. There's a great deal of

[29:48] benefit that the city manager and probably finance director derive from this.

[29:52] I just want to reiterate that we do have a policy on this council that if any council member

[29:57] asked for staff

[30:00] 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.

[30:29] So anyway, I do that and I do want to say as I'm encouraged with your comments about getting

[30:36] more involved with the management. The oversight I would think it would probably be more appropriate.

[30:41] I have confidence in the city manager to understand the need to be very careful in terms of the

[30:48] contractor employee relationship and that we don't get involved in the weeds if you will. Thank you.

[31:02] Thank you, Mr. Feeling for that Honourable Mayor, members of the City Council.

[31:07] As you know, we just heard a staff work with Trune to reformat the budget based on each

[31:14] profit center.

[31:15] It's now become a budget that's very similar to your city budget, your program budget,

[31:21] where each of the, each program specifies all the expenses for that particular service.

[31:26] So the new format that we've presented for you today is, again, very similar to the monthly

[31:33] financials that you are receiving and you will continue to receive.

[31:38] The more the new format includes all of the anticipated revenues for each program and

[31:43] then all of those underlying expenses that are required to operate that cost center.

[31:49] And finally, under that net operating revenue for the first time, we're now allocating

[31:54] costs.

[31:55] So we're allocating parts of payroll, general administrative costs, and of course, building maintenance costs as well.

[32:03] Looking at it in its totality, we're anticipating about 68,000 rounds this year, another 234,000 covers.

[32:14] Total revenues coming into the golf resort will be about 13.9 million qualifying expenditures, about 13.7.

[32:24] And as Mr. Freeland mentioned just a moment ago, we have asked for a capital replacement budget of $500,000 this year.

[32:33] But that will be limited to only those that really are necessary.

[32:38] We don't anticipate spending at all.

[32:40] 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.

[32:50] Probably the most important thing that I want to talk about this year's budget is

[32:57] where, as you mentioned earlier, we're heading into that great unknown of COVID, social

[33:03] distancing, how is that going to work?

[33:05] When are things going to be the new normal?

[33:07] We've heard all these terms before.

[33:09] And so as part of this process for the first time ever, Trune will continually reforecast

[33:17] the budget.

[33:18] So the budget I just spoke of, I promise you, will be different in the end of July.

[33:23] We're going to continually reinforce that budget on a monthly basis for all of the profit centers.

[33:30] It's not just the consolidated piece, but each profit center will be updated.

[33:35] All of the updates will include any updates that we see with state safety guidelines.

[33:41] will include actual monthly performances and of course we'll update all of

[33:47] rounds and cover forecasts as well which would include any changes. So just by way

[33:55] of example currently in our banquet business as you know we have about

[34:00] $900,000 already on the books. We're looking to grow that by about another

[34:05] other 600,000 but if we have a second wave of COVID, that's not going to happen.

[34:11] And so one of the things that I really want to express to the council is we have this

[34:16] ability as new information comes in, we're updating that budget every 30 days and we'll

[34:24] be able to, as we lower revenues or increase revenues, we'll be able to lower or decrease

[34:32] those offsetting expenditures in each one of the programs and we'll be giving you

[34:38] that as I said before we'll be giving you this monthly updated forecast I

[34:43] think it's really going to be helpful because it'll allow you to keep a laser

[34:47] focus on not just where we've been but where we're going it's one of the best

[34:52] communication pieces that I think has come out of this and that will come to you

[34:57] every month along with your monthly financials.

[35:01] So with that, staff recommends the council adopt the budget, as we've presented it,

[35:07] subject to these ongoing budget modifications based on those new monthly forecasts that I just talked about.

[35:15] And with that, staff is available for any questions.

[35:18] We have Mr. Rosen in the audience today, if there's any specificity on any one of the programs as well.

[35:25] So thank you for your time.

[35:26] Thank you.

[35:28] Okay.

[35:28] Before we start, just so that one of the reasons for being here is that we got the questions,

[35:35] I know Mr. Merton's objects to 20 hours of their time, but if we'd done this over the

[35:40] last eight years, it wouldn't have been 20 hours of time.

[35:43] This is the first time, and I thank Chris and this staff and Steve, for putting the time

[35:49] in for us to finally get a grab on this business, understand the complexity of this business.

[35:56] and understand that we all need to understand what goes on in this business and since it's a major

[36:02] law category, not a profit category to us, and how we can improve it and continue to

[36:06] improve it. And this is not time wasted. This is time that was critical at this point.

[36:13] One, because of COVID, but two, because we need to understand them, to be honest,

[36:17] with these past two city managers did not do this when I was on this council,

[36:22] when Ted was on this council, and it is critically important.

[36:26] You don't have to be an expert in this business, but we do all need to understand the business

[36:30] and to be able to make the proper decisions going forward.

[36:36] And this should be a huge help to the new council, and it should be a way to measure this business

[36:43] from now on the way it should be properly measured.

[36:47] This is a business, and whether it's a profit or a loss,

[36:50] It has to be run as a business and so I I can't thank all of you enough your time was well spent

[36:57] You certainly would have done this without us you would have had to do it you asked us for questions

[37:03] We all gave you questions some gave more than others

[37:06] But those questions are very specific and unfortunately questions create more questions and and what I would say to you

[37:14] Steve today is if you're not comfortable with the question

[37:18] Just say you'll get back

[37:20] You don't need to spend an hour on a question, if the question requires further work,

[37:27] you can come back with those answers back to the council in the next three weeks,

[37:32] whatever you think you need to answer the questions. Personally, I thank you and why don't

[37:39] you come up here and we'll go through this with the council and we're just going to go

[37:44] council person to council person. Some will have more questions and more things to talk about.

[37:48] others won't, if you don't want to listen to the others,

[37:51] shut your Zoom off or shut your mic off and go get a cookie.

[37:55] But we're going to get through this whole process, and once we get through it,

[37:58] there will be a need, probably, for one more meeting.

[38:01] That probably will be because we're going to need to look at the budget even closer.

[38:06] And I think you'll understand that as we go through the discussions today.

[38:10] But we're not ready to have to be very candid to you a final budget,

[38:14] because there are still outstanding issues that need to be taken.

[38:18] to look at, and if you, one of the things I'll refer you to is the mission statement.

[38:23] And if you look at the first paragraph, let's just hold on one second.

[38:31] If you look at the third paragraph, the fourth paragraph, and the fifth paragraph of the

[38:37] mission statement, you'll see why there needs to be still some continued work done on the

[38:42] budget.

[38:42] And to be honest with you, I've been involved now with Sunline's budget, the Zoos budget,

[38:48] CVB's budget, and I've looked at Cathedral City and Lequint's budgets.

[38:54] And let me tell you, it isn't a pretty picture, and we need to err on the side of conservative

[39:00] versus being too aggressive at this point, because we just don't know, and the conversation

[39:05] with the supervisor today, it can get worse.

[39:08] And we need to be prepared that from a financial standpoint in the city.

[39:13] So Steve, why don't we just, we'll start with Kimberly.

[39:16] And you just go ahead and ask any question you want, any follow-up question.

[39:20] And we'll just go through everybody here and try to get the answers that you need to get.

[39:25] Well, I think in looking at the report, we're just quite extensive,

[39:29] that there's been a lot of work that's put into it, a lot of thought,

[39:33] a lot of don't do something unless it absolutely has to be done.

[39:37] So, my only main thought is that we have to realize that these hotels were built with

[39:48] the mind, them using our golf courses.

[39:53] And I know way back when there was discussion that TOT, there should be a certain percentage

[40:00] that is allotted to the NELS golf resort.

[40:06] 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,

[40:21] I want to make sure that that money is allocated to the annuals golf resort. Does that make sense what I said?

[40:32] If I can attempt to respond, I think what you're asking is that staff be able to help track

[40:41] how much TOT is generated from our local hotels.

[40:43] Mr. McCarthy has put together an estimate of $690,000 a year and TOT is generated from

[40:51] golf patrons and that's kind of a conservative number because we're not sure if someone

[40:55] comes here and golfs for a day, how many multiple days will they be staying here.

[40:59] 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.

[41:09] Okay, thank you. Thanks for the good job.

[41:13] Any other questions?

[41:14] No.

[41:15] I have a question, Mr. Mayor.

[41:17] I'm trying to get, so you can go next.

[41:20] In my recommendation?

[41:22] Yes.

[41:28] Thank you.

[41:29] the golf? Is that what I understood you to say? No, no. What I was saying is that a portion

[41:34] of TOT about $690,000, conservatively, is what we believe is coming in annually to the city.

[41:41] What's the total TOT? What is our total TOT? $8 million. So yes.

[41:49] That's less than 10%. Correct. And that is one of the focus that was mentioned is that we are going

[41:55] We work closely with Trune, the CVB, and our hotel operators to find opportunities to

[42:01] increase their participation to bring in more golfers as well.

[42:05] And so we've already begun those discussions with our marketing partners but actually with

[42:10] our local hotels as well.

[42:12] We want to see that increased.

[42:16] If we're only getting 10% of our TOT from golfers, I

[42:32] thought the whole purpose of the

[42:33] off-burses was to drive TOT, and apparently they're early,

[42:38] they're early 10% of it.

[42:46] If I may, council member Reed, if I may attempt to add

[42:50] just perhaps a little flavor to the comment as per

[42:53] the city manager's comment, what's difficult first and foremost

[42:57] just to lay out a basis is to really get your arms around

[43:02] the relationship of TOT as it relates to golf.

[43:05] Here's a graphic example of what I mean.

[43:08] If a golfer comes and plays around the golf, all the director of finances is doing based

[43:14] on what information we give him is we attribute a one-night stay to that individual staying

[43:19] at that particular hotel.

[43:21] What we do not know is if they stayed the day before or stayed the day after or made multiple

[43:26] days of it.

[43:27] So again, there's probably a uncalculable factor associated with it.

[43:33] That's number one.

[43:33] 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.

[43:48] 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.

[43:56] So, again, there's an uncalculable factor associated with why do they come to Indian Wells?

[44:02] So, they're not just coming to the Indian Wells, but they all do respect to my hotel partners.

[44:07] They're not just coming to Indian Wells because it's a beautiful city with beautiful hotels.

[44:13] I think the view aspects of what you pride as 36 holes of amazing beauty, not just golf,

[44:20] is a huge draw as a resort, not just a golf course.

[44:24] So, again, you must factor that piece in as well.

[44:27] I do not know what that attributes to in dollars and cents.

[44:31] Well, plus, just to add, not only do people come for golf, but they also come for the weddings.

[44:41] And so that, I don't know.

[44:44] We have a wedding party of 200 people that could stay at the hotel.

[44:47] We don't track that simply because we're getting banquet revenue from it, but we don't know

[44:52] how much to attribute to a stay, so I hope that makes sense.

[44:58] It's too bad there wasn't a direct science.

[45:00] 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,

[45:29] There are a number of people and the reason why I asked that is it okay if I go already?

[45:33] Dana, are you done? I don't mean you're on the deal. I don't want you to be able to finish.

[45:42] Dana, are you there? He's on mute.

[45:47] Do you have any more questions? I didn't want to cut you off.

[45:50] No, no, no, I'm fine. The number is so low. It's just shocking.

[45:56] If it's not, if it's not, I could remember, then let's not use it, because it's so

[46:01] shockingly low that I couldn't believe that we're going through all of this and generating

[46:06] so little amount of money.

[46:08] Well, I think, Dana, that the thing that isn't in there is all of the other things that the

[46:13] hotel's benefit, that the golf resort, whether it's backwards, whether it's eating meals

[46:19] there, there's more than, and I agree with you, it isn't just golf.

[46:24] And so the tote tax is probably higher than that when you get to all of the things

[46:30] included.

[46:31] I think this one just correct me if I'm wrong is just golf.

[46:35] I think it operates like a resort fee, quite frankly.

[46:40] And it's just part of the resort campus, just that we happen to own that part of it.

[46:45] And we could say maybe all the TOT is part of that.

[46:48] I don't know.

[46:49] You can make an argument any way you want.

[46:51] I think the deal is it doesn't matter.

[46:53] We do well really well on TOT and the golf course adds to the TOT. I think we can

[46:59] agree with that. I have some questions. Yeah, Dana, do you have any other questions?

[47:05] No, I'm not now. Okay. Go ahead, Richard. Well, let me kind of go down my list. Chris,

[47:11] you mentioned the master plan. Have we ever done a master plan?

[47:16] We have never done a master. Okay, so there's never really been one done. And I don't know what

[47:23] 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?

[47:40] No, absolutely.

[47:41] It would be our intent to have the RP be developed by staff, send it out to the golf

[47:48] committee, have them review it, and bring them to the City Council for the approval of

[47:51] the RFP before it goes out on the street.

[47:53] Yeah, I had some thoughts initially when I saw it go, wow, maybe we shouldn't be spending

[47:57] the money, but if we've never done one and the things, and the dynamics have changed here,

[48:02] I think we really need to know that, is that golf, as these courses, even though they were

[48:07] read down in a new facility constructed during this period of time, the golf courses have been here for quite some time.

[48:14] And they probably had more hotel play 20 years ago than they do today.

[48:18] They do.

[48:19] And we don't even know. We know that's happened.

[48:22] And hotels are in the business to market hotel rooms, okay?

[48:25] And if the golf course is like I said on the campus, but they don't use it,

[48:29] that just like they have a pool, they might not use the pool,

[48:31] but it's part of the experience here.

[48:33] 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.

[48:45] These aren't in any particular order, okay, Steve, so then, and some of them are just here.

[48:50] Are we still, I hear that we may not be allowing, are we going to allow walk-up play anymore?

[48:56] 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

[49:05] They really just can't come to the course and pay money in place that right at present today

[49:09] They cannot so so that's a really good question and and there's a different answer from a future perspective

[49:16] So at present today based on the circumstances on where we are our mission is to make

[49:22] make everything as much as humanly possible, contactless as possible.

[49:30] So presently we have and we will for the future continue to keep prepaid golf online where

[49:36] you purchase your golf, you come in, you literally can bypass having to come in and check

[49:41] in through the counter.

[49:42] You can simply go outside, therefore not having to queue up in a line, get crowds and so forth.

[49:47] So the reality is what will we do from a future perspective?

[49:50] Well, as things begin to change, you'll certainly have the ability to come in at some point

[49:55] in time with a credit card, it's not that you won't be able to do that.

[49:58] However, we want to be able to manage opportunity now and minimize the potential of the hazards

[50:04] that we present in our experiencing today.

[50:06] Yeah, I totally understand that.

[50:08] The reason is that I think walk-up play is good, but more than that, it's the experience

[50:15] if you've walked into a pro shop, and I'll give my own example, I've walked into places

[50:19] thinking I'm only going to pay for golf and end up buying a hat or I don't

[50:23] realize I have a glove so some merchandise sales are a result of coming in the

[50:28] shop in the experience of that and and we have really a very wonderful great

[50:34] pro shop at top notch so I just don't want to make sure that we don't lose that by

[50:39] just thinking oh we've gone to the millennial world of let's not talk let's use

[50:44] this all the time and knowing and do that and I just don't want to lose that

[50:47] experience your your point is well taken so I think there are just a couple of

[50:51] things with that associated with that so we have we understand that we recognize

[50:55] that we've talked about that it is from a future perspective but bear in mind

[51:00] that we have we've now accomplished two things for that next gen if you will for

[51:04] this this little crazy thing that we all carry the reality is we have an

[51:09] amazing online shop that you're probably aware of that I'm actually not

[51:13] 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.

[51:28] 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.

[51:33] So the reality is one that's picking up some of the slack too, when we get into season

[51:39] we'll be creating packages that will also be online packages that will give you the

[51:43] ability to pick up some of the loss of buy when you're walking the shop will include

[51:53] balls with it, a hat with it, a shirt with it, we'll give you that ability to actually

[51:58] buy it online before you even come pick it up as you go through check in so we're putting

[52:02] those together as well.

[52:03] 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

[52:10] 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?

[52:23] That's exactly what I was referring to.

[52:25] Is that all you're planning to do?

[52:26] Exactly.

[52:27] We're doing that, and that's exactly what I was talking about.

[52:30] And we're also doing that of it related

[52:33] to the tournament group side of things.

[52:35] So there's also an incentive and a package

[52:37] that we're putting together from a group side

[52:39] that will also include merchandise.

[52:41] And we've never done that before.

[52:43] And this is really provoked us to really go down

[52:46] that road where when you're purchasing group buy,

[52:49] we can include gift cards with different steps

[52:52] buy 100, get 25 back, and those kinds of things to offset the lack of traffic that you're

[52:58] going to have in the shop.

[52:59] Yeah, I'm glad to hear you're doing that.

[53:03] But just to go to your question, when I went and reviewed the marketing plan, my understanding

[53:10] was that people would no longer be able to even have to COVID come in and walk up and pay

[53:16] for golf, with cash or whatever, that that was not going to be a policy anymore.

[53:22] Is that, did I misunderstand?

[53:23] Yeah.

[53:24] Our intent is to go as much as humanly possible with prepay golf for a lot of reasons.

[53:29] However, the reality behind it is after we get out of this and we're safe enough, the

[53:34] last thing we're going to do is turn away business.

[53:37] But the reality behind this is, and I don't want to mislead anybody in the bleeding guess,

[53:41] we don't want to make that as an option right now today because there are too many people

[53:44] That would take it as an option and we want to remain safe.

[53:47] No, I'm not going to go down that road.

[53:50] I think I'm just looking out if we can think what maybe normal is again.

[53:56] If there is such a thing.

[53:58] Chris, this one's really for you and that's the, so when we adopt a budget,

[54:03] like we do for the city, and we're assuming that even a tune operates,

[54:08] and this operates like any other department.

[54:11] Does it not from a budget control standpoint?

[54:14] That's what our focus is this year is, that's what Mr. McCarthy said as far as programming.

[54:19] 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.

[54:23] 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?

[54:31] 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.

[54:38] 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.

[54:49] That's our intent. So you have before you a budget with a number of positions, and those aren't all people working today.

[54:55] I understand that I understand how budgets are done. We have budgets that have positions in them that aren't filled.

[55:02] They can be and remain unfilled at your discretion, but that would be true here. That's right working together.

[55:07] 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.

[55:17] Thank you.

[55:18] Okay. Well, that's good. I just wanted to clear that up to make sure that that was simple.

[55:24] Would we, and you mentioned that, I think, as part of your reporting, will we get some

[55:29] reports occasionally on how well our marketing plan does, in other words, we spend X, what

[55:36] do we get Y back, or how does that work, and will we get some of that from you?

[55:41] You will.

[55:42] So, I was actually texting and emailing Ms. Michaela Wilkin before the meeting.

[55:47] There are already certain plan meetings as early as next week with the marketing team.

[55:50] Yeah.

[55:51] and they need to put together an action plan and some deliverables to show us.

[55:55] I was glad to hear there's there's bank with business but still there.

[55:59] Okay, we don't know if and when it might be able to be fulfilled at this point in time

[56:04] but it still remains there.

[56:06] Are those that remain there?

[56:08] Is there a deposit on hold?

[56:10] Is that how you call it on the books?

[56:12] In certain instances, yes, there's a sign contract.

[56:16] Okay, some have deposits depending upon how far out they are.

[56:19] And that also goes not just for bankwits, but it also goes for group golf tournaments as well.

[56:24] Where you have another $780,000 worth of commitments.

[56:29] However, understand, based on the environment today, we don't know.

[56:34] But if there is a cancellation or a push, we're unbelievably flexible these days in light of what goes on.

[56:42] Yeah, I get that, thank you in terms of that.

[56:47] The performance measurements, I've had lots, I've been big on that and I think it's important.

[56:55] 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.

[57:02] 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.

[57:09] 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

[57:15] applies really citywide by the way I think to all of our departments what what are

[57:20] those measurements and benchmarks and that's your job Chris not ours but I want to

[57:24] make sure that somebody's doing it. One thing Steve I did find interesting is that when

[57:33] And the restaurant basically seemed to be heavily relying on the hotels to use our restaurant

[57:41] facilities.

[57:42] Do I misunderstand that?

[57:44] In season, the majority of our hotel dinner business is that of hotel, that is correct.

[57:51] Secondary would be, and I say in season, secondary are your local snowbirds that come in.

[57:57] And then, of course, our year-round local Coachella Valley as well as residents as well.

[58:01] And it really depends upon seasonality, month of year itself forth, but a majority of

[58:06] what comes our way is as a result of the hotel feed and then during different meal periods

[58:14] you're relying on that of your golf defeated, as well as your local business defeated.

[58:19] The hotel steer things your way, I assume.

[58:21] Absolutely.

[58:22] Okay.

[58:23] The benefit, and this really goes hand in hand with Council Member Reed's question as to the

[58:27] nature of not, I don't want to go back to the TOT question, but the reality behind it

[58:31] It is our campus, which we refer to it as a campus, part of that is really benefiting

[58:37] the hotel to avoid opportunity for a guest staying at a hotel to have to lead in the

[58:43] in wells and find something that it might like better.

[58:47] So we want to keep them as close to homes we can.

[58:49] I have two last questions and they're both in that deal, so these were more in there.

[58:56] How did the golf, I noticed in the allocated building cost, do you guys put there, I don't

[59:02] know whether that was Kevin or whoever wants to answer that, it seems to me is that the

[59:06] food and beverage would have had a higher building maintenance cost allocated to that cost

[59:12] center, but yet golf was larger.

[59:14] So allocations both in building as well as GNA and Mr. McCarthy can certainly step in are

[59:21] are predicated upon and measured on square foot revenues.

[59:25] Oh, revenue measures.

[59:26] Okay, so you guys don't allocate building costs based on square foot?

[59:29] No, sir, not at all.

[59:30] Okay, that answers the question.

[59:32] Okay, thank you.

[59:33] Is that correct, Mr. McCarthy?

[59:35] I got the thumbs up.

[59:36] Okay, well, and then lastly, there was some allocated payroll to the catering or banquet facility.

[59:45] But shouldn't there have been an offset someplace, or is that just new?

[59:49] There is.

[59:49] 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

[59:56] P&L piece of it. You'll see an offset for a credit

[1:00:00] 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

[1:00:30] I'm going to be so conversant.

[1:00:32] It's also something that every...

[1:00:34] I really hope so.

[1:00:36] I hope you're right. You will be both.

[1:00:39] Well, Chris has assured me that that's the case.

[1:00:41] Well, it's also something every business does just so we understand.

[1:00:46] Yeah, they do it periodically.

[1:00:49] We've never done it.

[1:00:50] Once or twice a year, we haven't done it in eight years.

[1:00:52] Well, I think that's because actually, and I want to thank you, Chris, too,

[1:00:57] because I think the communication that we're getting and the types of things

[1:00:59] in the working environment is really a positive.

[1:01:03] There's not contentious, we're here,

[1:01:05] we know what it is and that's it.

[1:01:09] I think we can't make something happen,

[1:01:12] it can't happen and largely like I said,

[1:01:16] when you give away and I think you answered that,

[1:01:19] when you said it's both an amenity

[1:01:21] and a business, the amenity largely to me is the subsidy.

[1:01:25] That's an amenity.

[1:01:28] I will say in response to that, Mr. Block, that is exactly one of the first discussions

[1:01:35] that you and I ever had when you were elected to this council.

[1:01:38] And we agreed at the time between us that we needed to come to that realization sometime

[1:01:43] and I think we finally have recognizing that it can be both an amenity and a business,

[1:01:49] but it's not fair to charge Trune with making up the amenity side.

[1:01:53] So this is the first time we've ever admitted that and I appreciate it.

[1:01:57] I totally agree with you 100% on that and you know anytime that you start subsidizing anything to some degree.

[1:02:08] 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.

[1:02:15] And we don't know whether all of the subsidy could be gathered by selling at real time to outside.

[1:02:22] but we don't know that answer.

[1:02:24] I think we think a good portion of it could happen that way.

[1:02:28] Maybe it could be exceed that, who knows?

[1:02:30] But that's not what we do.

[1:02:32] We really don't with the golf course is really only open.

[1:02:36] A one-third of the golf course is subsidized

[1:02:39] and is available for subsidization.

[1:02:42] A third of the time.

[1:02:43] Mr. Mayor?

[1:02:45] Yes, sir.

[1:02:46] At the legal California City, as we call this,

[1:02:48] an unfunded mandate.

[1:02:52] Yes, that's a good one, Dana. I operate a business like that from the state.

[1:02:58] Okay, Ted.

[1:02:59] I would just first like to thank Steve, I thank Chris and Kevin, but I'd like to thank Steve

[1:03:04] for all the time that you and your staff, your entire staff within.

[1:03:08] The reports that we have are mind-boggling.

[1:03:11] But I've taken the time to look at them, and I believe now I understand them.

[1:03:15] I called Steve. I spent some time on the phone with him trying to fully understand him.

[1:03:20] I've talked with Chris. And I appreciate it. And I think that Mr. Peabody's right. This

[1:03:24] is long overdue. Hopefully, it's the last time we have to do this during our tenure. But

[1:03:30] the fact is that we now have a really strong basis, particularly for the city staff to use

[1:03:40] to move forward and to oversee the contract that we have, whether it be with Trune or anybody

[1:03:44] anybody else in the operation of the golf resort.

[1:03:47] I think the question was asked, I know that the question was asked at least in maybe a

[1:03:53] different way.

[1:03:54] I'm looking at like your banquet projections and your group golf and so forth, and the

[1:03:59] numbers that you have appear to me, at least for the remainder of this calendar year, to be

[1:04:04] a little bit optimistic to say the least, but in terms of why they're on here, these are

[1:04:14] are actually either committed to banquets or group golf that you have, let's just take

[1:04:21] for the calendar year, recognizing there's a strong likelihood that some, if not all,

[1:04:26] those may never occur, but they're there because you have either a deposit or a commitment

[1:04:31] to have these events. That's correct. That is correct. Thank you.

[1:04:34] And what I would also add to that is that since you had that report, the group golf has grown.

[1:04:40] So, there's a propensity out there and I want, I'm not advocating, I'm not condemning

[1:04:46] or condoning, I'm simply telling you because none of us can predict the future.

[1:04:49] I certainly can't because I wouldn't be here if I could.

[1:04:52] The reality is I would tell you that there is a propensity out there for a want, for

[1:04:58] people to get the heck out.

[1:05:01] And golf today, every time I've stood before Council, all you've ever heard me and us

[1:05:08] say from the golf resort is how the golf industry has seen that dive and then all of a sudden you're seeing a

[1:05:14] Level a leveling of it

[1:05:17] This unfortunate pandemic that we've had could potentially be something that could create a

[1:05:23] Resurgence in golf by virtue of the fact of what the sport is. I'm not advocating it and saying it

[1:05:29] 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

[1:05:36] that by virtue of what kind of play we're getting and other courses are getting in the summer.

[1:05:42] When it's 110 degrees I've not seen 150 golfers in my eight years and we're seeing that now.

[1:05:50] I agree with you and it's particularly encouraging when the CVB reports that a majority and a number

[1:05:58] people want to take what I'll call staycations drive you know three four five

[1:06:03] six hours we're a natural we're a natural for northern California people

[1:06:08] that come want to come down here for some warm so anyway and we're doing

[1:06:11] group golf now I mean last Saturday we had groups when I say groups let me

[1:06:15] define it so people don't write you letters and comments the reality behind

[1:06:20] it is we had a group of 20 golfers they come one at a time they check in they get

[1:06:24] individual cards they play that's a group they can't meet in the ballroom

[1:06:27] they can't sit down and do scoring. I'd be very clear. Everything is socially

[1:06:32] distanced but the reality is they can do box launches. They can go out on the

[1:06:36] course. We had them last week. We'll have them this week. So I you're not

[1:06:43] going to see the groups of 200 meeting and having a dinner party just yet. Will

[1:06:47] it happen? Maybe. We hope.

[1:06:56] I'm going to take a little bit of time, but I also will take some of the questions,

[1:07:01] put them in writing and give them to Christ to give to Steve to get back, because I know most

[1:07:06] of you won't have an interest, but whatever answers he gets back from Steve, obviously

[1:07:11] we'll give to the council.

[1:07:13] But there are a lot of questions that haven't been asked.

[1:07:16] and my first concern is this budget is too aggressive for this time and I will give you two

[1:07:26] three things that concern me and I believe we if you don't want if you want to accept

[1:07:32] this budget God bless you but I think we need a worst case scenario because I will point

[1:07:37] out three things to you.

[1:07:39] One is, in Steve's mission statement, he states that, and this is a good mission

[1:07:46] statement, Steve, so to understand that, there could be possibility for dramatic

[1:07:51] drop in group and leisure rounds due to maintaining operating guidelines.

[1:07:55] You may see a drop of 5,000 rounds of social distancing guidelines.

[1:08:01] That means to me that we've got to have a different scenario to look at to know what

[1:08:07] not really the loss might look like.

[1:08:10] Well, your budget is actually increasing, let me just finish this, because it's not

[1:08:14] in there.

[1:08:15] I've got what you've got.

[1:08:17] Then the next one was under retail, you could see a dramatic drop in traffic.

[1:08:21] All of this I agree with you, totally agree with you.

[1:08:25] The other thing is there were $555,000 of budgeted banquets and golf between now and the end

[1:08:36] of December. Personally, I think you're committing suicide to put this in a budget right

[1:08:44] now because it's probably a 60-70 percent chance that that will not happen. So my recommendation

[1:08:51] to the council is that we have either revised this budget or have a worst-case scenario

[1:08:59] So that's so that where is it yeah Chris and Kevin can give us what might be a

[1:09:10] significant additional loss of cash and it would be improved for us not to do

[1:09:18] that because the reason we've done so well to now is we took a very aggressive

[1:09:23] approach over the last 8 years to put money away. This plan, I love your business plan,

[1:09:30] but reality tells me that we better have a worst case scenario and be able to see how

[1:09:35] we're going to deal with a half a million dollars more of loss. If we don't, we're not

[1:09:40] doing our fiduciary responsibility. So I bring that to the council first. That's the

[1:09:45] first thing that I want to get on the table is that I believe we need to do another budget

[1:09:52] But that tells us what the worst case scenario could be as best as we can judge right now.

[1:09:59] That's up to the council.

[1:10:01] They don't want to do it.

[1:10:02] That's up to them.

[1:10:03] But I just got to tell you, having been through a whole bunch of different things, it would

[1:10:07] be imprudent for us not to look at a worst case scenario.

[1:10:11] Mayor, I have a question.

[1:10:12] Yes, ma'am.

[1:10:15] But to ask you a question, Chris, didn't you say that this was going to be updated monthly?

[1:10:23] That's correct. We'll be updating that and providing update embers on my

[1:10:26] place. This is just a start. I'm a starting place. It's not a starting place. Right

[1:10:31] now. Do you honestly believe that we're going to get $555,000 of of banquets

[1:10:38] engulfed between now and in December 31st? Because if you don't then we shouldn't

[1:10:43] put it in there. We're making them. They've given us a budget. If they want to

[1:10:50] live by that budget. God bless them, but it's not going to happen. It is not going to happen.

[1:10:56] And Steve is right in his mission statement about potential loss of merchandise and potential

[1:11:02] loss of golf. And I'm saying you should have two budgets right now. If you want to keep

[1:11:08] with Steve's, I won't approve it, but that's just one person. But you have to know that

[1:11:13] You're going to lose more money than that's on this budget.

[1:11:17] Well, you're looking at it as a part of not just the loss, because this is just a plan.

[1:11:23] Correct.

[1:11:24] It's a spending plan and a revenue plan.

[1:11:27] So if you're concerned that it's too optimistic, is what I'm hearing you say, then would

[1:11:37] you prefer they not put anything in there for the banquets?

[1:11:40] That would be my preference as a good on a conservative basis.

[1:11:45] That's what I'm saying.

[1:11:47] I would not put those $555,000 into a budget right now because it isn't happening.

[1:11:55] Go look at what CVB is telling you right now.

[1:11:58] It's not happening.

[1:11:59] Right now, the highest now talking August, it could be September, October, before they

[1:12:05] have a function.

[1:12:05] But what I guess, and I already made the statement that I thought it might be a little bit

[1:12:11] aggressive in terms of what's other, but it's predicated on what you believe that you

[1:12:19] have on the books now.

[1:12:20] You reasonably believe that you can get this business, is that correct?

[1:12:24] So the reality is to answer your question, the mayor's question is based on what we know

[1:12:30] From what we've been doing and what we have on the books our what we refer to as our pace

[1:12:38] Yes

[1:12:40] We don't know whether or materialize. I cannot sit here of all years of counsel to ask Steve Rosen to

[1:12:46] 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

[1:12:55] Saying that it is optimistic or not optimistic. I'm saying that

[1:12:59] 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?

[1:13:11] I don't know. I can tell you that I will give you a proactive, not reactive, proactive approach moving forward.

[1:13:18] 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.

[1:13:25] I have one more question regarding the groups that you have on your book's plan.

[1:13:32] Have you already thought and visualized how you would accommodate the distancing and

[1:13:41] how you would prepare a meal and all of that based upon our COVID situation right now?

[1:13:49] So we've not been given guidelines as to how you even handle group business other than

[1:13:54] then we know, and it's fairly simplistic to know that, for instance, buffets will have

[1:14:00] to go away, or will have to be manned by staff.

[1:14:04] Plated functions, you're going to have to be able to socially distance people if you're

[1:14:09] required to do so.

[1:14:10] Will you be able to sit at a table at 10 anymore?

[1:14:13] Probably not.

[1:14:14] We don't know that.

[1:14:16] So the reality is, we will have to deal with it.

[1:14:19] It goes a lot deeper than that, and I know we're not talking about, and I don't want

[1:14:23] get you down a different path, but even not having valet in season, you're going to run

[1:14:30] out of parking spots and you're not going to be able to maximize it at some point.

[1:14:33] We're going to have to deal with that issue.

[1:14:35] So there's a lot of unknowns here.

[1:14:38] I wish I could throw it dark and get close for you.

[1:14:41] Right now, Kimberly, so you know, the policy on functions is ten people.

[1:14:48] That's it.

[1:14:49] That's it.

[1:14:49] Right now.

[1:14:50] Yes, sir.

[1:14:51] Mr. Mayor.

[1:14:51] 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

[1:15:04] Okay.

[1:15:08] 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.

[1:15:29] It presumes the worst, or maybe not the worst, but a very bad situation between now and December 31st.

[1:15:41] 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.

[1:15:54] Thanks, Dana.

[1:15:55] It's in Dana, it isn't hard.

[1:15:57] We're talking about a few adjustment numbers, particularly in revenue, which will then

[1:16:01] reflect on certain labor costs.

[1:16:04] But yes, what you're saying is correct.

[1:16:07] I'm afraid that we're going to have a worst-case scenario.

[1:16:11] And if you see the numbers, I agree with you.

[1:16:13] I'm not that I wonder what to adopt that, but I certainly like to know what it would look

[1:16:18] like.

[1:16:18] That's, I would agree with you.

[1:16:20] 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.

[1:16:31] I see in can I ask to jump in?

[1:16:35] Steve in the I'm on the bank what in catering page here.

[1:16:41] Obviously revenue costs the sales those they don't materialize if nothing happens.

[1:16:45] So that's, it's not a big deal.

[1:16:48] What really happens is a big deal, but it doesn't change a great deal of things, sir.

[1:16:55] In other words, on trying to figure out, how much fixed expense is budgeted in bankwood

[1:17:04] and catering that doesn't go away if you didn't have any business?

[1:17:07] It's not a lot of fixed expense in bankwoods.

[1:17:13] You carry two salary adoptations that will not go away that is fixed expenses that will not be able to be paid by profits

[1:17:20] by your fixed overhead associated with your building.

[1:17:23] You're still going to have $855,000 of a building expense.

[1:17:27] That's where I look at early due benefits and how.

[1:17:29] That's my point.

[1:17:30] Exactly.

[1:17:31] So the point is, if you do bankwits and you receive profits, it offsets your overhead.

[1:17:37] I know.

[1:17:38] What's happened is, when we've allocated out the cost here, and I'm just looking at that,

[1:17:42] So we allocated the billing to $99,000.

[1:17:46] We've got allocated G&A to $12, and we've got allocated payroll of $346.

[1:17:52] 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.

[1:17:59] If you didn't have anything to offset them, they have to go back into one of the other areas.

[1:18:03] You're correct.

[1:18:04] If you're going to observe them in another area, but you could simply take the 30% flow through from bank,

[1:18:08] what's insane if you had, I don't mean to make it as simplistic as this.

[1:18:11] 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.

[1:18:17] Yeah, I think that, and I think Kevin's on board with it, you've got two sets of costs in here.

[1:18:22] You've got variable costs that are with a bank.

[1:18:24] If something happens in a banquet, somebody has a job to do it, no banquet, no job.

[1:18:30] But if they're in here and just being allocated but having to be paid anyway because there are fixed costs someplace else,

[1:18:37] That's what I think Mr. Peabody's getting to here is even if you eliminated the revenue

[1:18:44] and some of these things, some of these expenses are going to stay.

[1:18:48] Correct.

[1:18:48] And that's all we're trying to get ahead of him.

[1:18:50] And I think Dana Danza-Yos is when you have the worst case scenario, you can build

[1:18:55] from the worst case scenario up.

[1:18:57] And that's what your budget would be on the best case scenario or even a middle case scenario.

[1:19:03] But not to know the worst case, you could have a real shark come, come the end of December,

[1:19:10] and it could be a significant financial shark, and I just, and I appreciate your support

[1:19:15] because we just have to do it.

[1:19:18] It would be financially irresponsible not to do a worst case scenario.

[1:19:23] Yes, I have the question.

[1:19:24] I'm going to be doing that.

[1:19:25] I think that's what Chris and Steve are doing on a monthly basis.

[1:19:28] You have to come to some agreement on the plan, and I'm fine if you want to eliminate the

[1:19:32] the banquet revenue Mr. Merton's brought that up that's okay with me but the reality of it is

[1:19:39] you still have some fixed cost in there and ultimately it either make it up by selling more

[1:19:44] golf or something on the F and B side or if it isn't made up it just becomes a loss but all of

[1:19:50] that still gets put together and Kevin is and Chris and you're part of that and Steve you're all part

[1:19:56] of the same team here, it ultimately, I think, if we had a perfect world where we had extra

[1:20:03] money in a fund here, that we said, okay, we're just going to erode the cash balance

[1:20:08] in the fund, but we don't, so it's going to have to come back into the general fund,

[1:20:13] and I think that's what Mr. Peabody's concern.

[1:20:15] I think it's all over.

[1:20:16] I think it's fair to say we're all all concerned about that.

[1:20:19] You also have an omission statement that says they could lose 5,000 rounds.

[1:20:25] If he says that, and it's possible, how can you budget 5,000 more rounds?

[1:20:31] You need to start with a worst case.

[1:20:33] Maybe it's 2,500 rounds, but you have to have.

[1:20:36] I think golf is off to a great start.

[1:20:38] I've been out there.

[1:20:39] It's kind of hard to get a tea time point.

[1:20:40] Well, that's only because it goes to a nine-door.

[1:20:43] If I may, all points are great.

[1:20:45] If I may, though, and I think there's a little bit of a miscommunication here,

[1:20:48] the budget represents a loss of 6,500 rounds.

[1:20:52] So, when the mission statement was written, Mr. Mayor, in your point is well taken and a good one.

[1:20:58] But when the mission statement was written, the anticipation was 5,000 when we actually did the budget,

[1:21:04] we've taken into consideration the 6,500 round loss.

[1:21:08] I think you've done a great job in doing all that.

[1:21:10] I think what it is is to catering, I think having a footnote on there, listen,

[1:21:16] I want all that catering and then some fulfilled or bank, which whatever you want to call it.

[1:21:21] I just think it's just, we just don't have a clue when it might happen.

[1:21:26] Well, there's other issues, Richard.

[1:21:28] Should the view be open, is the view able to break even now using the existing staff?

[1:21:34] We don't know that answer, but if it's not, should it be not open for the next two months?

[1:21:38] I don't know that answer.

[1:21:39] Well, I think they don't know either until it happens and I think that that's what they're going to,

[1:21:44] they said that's what they're doing.

[1:21:45] They know what they're doing for business now, that probably gives them a pretty good indication.

[1:21:49] But all I'm saying is I would like to see a worst-case scenario because I'm more conservative

[1:21:56] I guess than others, and if everybody thinks just to give you an idea, Don Diego's is

[1:22:03] down 40 percent of sales today.

[1:22:06] Everybody's like that.

[1:22:09] The zoo is budgeting being down next year, 45 percent.

[1:22:14] I mean, I'm just telling you, all of the other places in this valley are aggressive

[1:22:22] 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?

[1:22:32] Every one of the categories are budgeted down.

[1:22:38] View, for instance, is budgeted $366,000 less than it was the last.

[1:22:43] What is that like in a percent, Steve? Do you have an idea?

[1:22:46] So if your total revenues are 2.6, so you look at that closer to 10% down.

[1:22:54] The merchandise shop, the same as budgeted, a few hundred thousand dollars less from a profit standpoint.

[1:23:00] So all I'm saying is we took our best guess as to what the downside would be.

[1:23:08] I hear you loud and clear, and if what you're looking for is for us to come back.

[1:23:12] 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.

[1:23:19] But we would be delighted to take out the catering revenue through December and show you what that potential impact could be.

[1:23:29] Absolutely.

[1:23:30] I think you should look at everything.

[1:23:32] I think we're looking at a 12-month period here, right?

[1:23:35] We're looking July to next June.

[1:23:37] Correct.

[1:23:38] And so, you, I mean at some point in time, none of us know what that will be, but when

[1:23:43] people are, if they're scheduled in this calendar year, I guess you'll start to find

[1:23:49] out, I guess there's points where they have to communicate with you, they have a deposit

[1:23:55] they will lose or something, right?

[1:23:56] Right.

[1:23:57] And so, I think as you get that, you'll be updated, but I think this is the job of the

[1:24:03] our chief financial officer to manage the cash and the money.

[1:24:07] And I don't want to do his job.

[1:24:09] And so I think the two of you all can work together.

[1:24:12] And if I think that I'm hearing that it's really up

[1:24:17] to the staff if they want to me to want to revise the budget.

[1:24:20] But if you leave it as is, to me, I'm

[1:24:26] going to hold you accountable to pretty much what's in there.

[1:24:29] When you say hold accountable, I hear you loud and clear.

[1:24:32] But the reality is I just want to go on a record basically saying I have no idea if the government closes the state

[1:24:38] 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

[1:24:43] But I'm saying we're better off to lower the numbers in the budget and take a different lower deal

[1:24:50] 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

[1:24:56] First of all, we'll feel better

[1:24:58] 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.

[1:25:05] I just keep telling them it's a planning number. I can't get them to focus off of that.

[1:25:10] They like to look at actual to budget and it's kind of common in every place.

[1:25:14] And so you go, well, don't be too optimistic on the budget.

[1:25:19] And then not here because on the other hand, people get disappointed with that.

[1:25:24] So I think just take another look at it you got time you said you were going to do that anyway Kevin. So

[1:25:30] I was I would just defer that we we could to me I I could adopt this today

[1:25:36] I could but but I know you don't want to but I could be four to one but well I could not today

[1:25:43] But I'm really looking for a revised budget comes July. I think you're going to have some more information

[1:25:49] I'm in the same spot

[1:25:50] I'm asking mine board to adopt a budget.

[1:25:54] I'm closed and I'm trying to figure out what my attendance might be and how to do that.

[1:25:59] And so I don't know how to do that.

[1:26:01] So I'm doing the same thing kind of what Mr. Rosen is doing.

[1:26:04] I'm putting a budget back, I'm past history, but I've told my board that in July, as I get

[1:26:10] more information, and every day you get something different, I'll have a new one.

[1:26:16] Okay, well let's go ahead, go ahead.

[1:26:19] Thank you, Mr. Mayor.

[1:26:21] No, it's been a good one.

[1:26:23] And I think that in, you know, to Mayor Peabody's question, it's a good one as far as

[1:26:28] worst case scenario.

[1:26:29] But worst case to us, maybe them shutting down the golf course again for a period of time.

[1:26:33] Well, that's a different, I think the worst case you're doing is just assuming that COVID

[1:26:40] is not going away and it's staying at a level at about what we know now because that's

[1:26:45] what they're telling us.

[1:26:46] And I think that what we would look to do is, you know, as long as we're able to reflect

[1:26:50] decreases in merchandising, in banquets, and I think it's very reasonable to say we're

[1:26:56] not going to have any banquets until the end of the year.

[1:26:58] And that's something that you could approve tonight, or this afternoon, when you come back

[1:27:02] to us.

[1:27:03] There's no rush on this.

[1:27:04] No, but there is no rush.

[1:27:06] No, there isn't.

[1:27:06] But then a number of rounds.

[1:27:08] So we can bring back, we just want to know if there's certain expectations of what you're

[1:27:11] looking for.

[1:27:12] Yeah.

[1:27:12] You come back and tell us.

[1:27:14] Yeah.

[1:27:16] We're not going to sit. We're not going to sit you budget. We're trying to help you. Understood?

[1:27:20] 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.

[1:27:28] How much do you anticipate the master plan is going to cost?

[1:27:32] 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.

[1:27:39] for it. First, you're not going to move forward without having

[1:27:41] understanding the cost. Okay. So right now we don't know. I would, I'm

[1:27:45] going to guess, I just, as a guess, it'll be under $100,000. Okay.

[1:27:49] And the purpose of the plan, again, so look at all operations,

[1:27:53] efficiency, staffing, other activities that are happening at the

[1:27:57] golf resort. Okay. My question is, you, in this plan, you

[1:28:00] think of doing anything major to the golf course over the, I think

[1:28:04] that would be a two to four years. Next two to four years, perhaps

[1:28:07] No, I think it'll be a discussion that may come up as a part of that, though.

[1:28:10] That wasn't my question, though.

[1:28:12] My question was, do you just say, because I'll tell you, and I'll just end it with this.

[1:28:17] Yeah, you don't have the money.

[1:28:19] No, I agree, but it also depends on what exactly is being, if any changes are made.

[1:28:25] Okay, well, that'll be the next counsel, Dana and Richard.

[1:28:30] Thank you.

[1:28:34] Just out of, you just like the rest of all of government, let's give it to the next guy.

[1:28:40] I would do the best we can.

[1:28:42] Then I can come sit in the audience and pick on you and Dana, so that'll be easy.

[1:28:47] Zero-based staff, Steve. I'm the only thing I'm going to say about zero-based staff.

[1:28:50] I don't think you guys get it.

[1:28:52] And I'm just going to leave it at that by saying zero-based staff is what does it take on a daily basis?

[1:28:58] basis. How many people to open the doors? That's so that's base staff. And how much does that cost?

[1:29:05] That's what zero-based staff it is. And that's all I'm going to say. You don't even have to respond.

[1:29:11] Okay. Okay. On the organization charts, I would like to see on the organization charts. How many people

[1:29:18] in each category, for instance, you have Joe's area, and you write Valley, Stodders, and so on? How many?

[1:29:26] Do you? So just you don't have to answer that today.

[1:29:28] Why do we have to know that?

[1:29:29] You had that.

[1:29:30] It's because I have a question and I have a right to ask the question.

[1:29:33] That's a nice question.

[1:29:33] It's getting into the weeds.

[1:29:35] No.

[1:29:35] That is not in the weeds.

[1:29:37] If you want to understand this entire plan, you should have had a lot more questions, Mr.

[1:29:42] Mertens.

[1:29:43] And you don't, and I'll just, I could ask you 100 questions and you, and all I want to

[1:29:48] do is I'm trying to get it so that when we finish this discussion and we finish this

[1:29:52] strategic plan. Everybody on this day is, understands it, whether they're

[1:29:56] interested, not interested, but at least they will

[1:30:00] And I understand the business and what it takes to run this business. If you don't

[1:30:05] interested, that's not a problem. And I think I'm just going to quit at that. The food

[1:30:11] trucks is a whole other discussion we can have that separately. And I will provide my

[1:30:16] questions to you to Chris, and then you can just give them back and give them back to

[1:30:22] all the council. Are there any other issues? Does anybody have a committee,

[1:30:27] Kennedy, Skimbley, anything?

[1:30:28] No, nothing to report.

[1:30:30] Richard?

[1:30:31] Yes, I attended the SEVAP meeting by telephone.

[1:30:37] And I think Mr. Merton's brought that up.

[1:30:40] And we've been talking about that.

[1:30:41] It seems like there's still a lot of business activity

[1:30:44] in the Palm Springs area of people looking maybe to even

[1:30:48] relocate here and some of their employees looking to

[1:30:52] relocate here.

[1:30:54] just simply now with appears to be I'll say at home work that people are

[1:31:03] redefining where they might live and rather than you know take that house in

[1:31:09] Orange County and work in Anaheim or something they could live out here and

[1:31:13] still work in Anaheim. So I think that we're gonna see some things there that are

[1:31:17] starting to shift around and so there was a lot of talk about that and so lots of

[1:31:23] still interesting things happening and of course I think a lot of activity here even

[1:31:28] in the summer for the Airbnb's I think a lot of those are already books so we're seeing

[1:31:33] some different kind of things that we might normally have seen so that's it.

[1:31:38] I think that's it.

[1:31:39] Ted, go report.

[1:31:41] Dana?

[1:31:42] Nothing to report.

[1:31:43] Okay.

[1:31:43] I don't have anything.

[1:31:44] We will adjourn to July 23rd or sooner.

[1:31:48] Thank you.

City Council on 2020-06-18 1:30 PM

Agenda

Transcript