Mar 11, 2026 City Council Meetings

[ Call to Order]

[00:00:10]

CITY COUNCIL. CLOSED SESSION AND REGULAR MEETING OF THE CITY OF COACHELLA. THE COUNCIL SITTING AS COACHELLA SANITARY DISTRICT, COACHELLA FIRE PROTECTION DISTRICT, COACHELLA FINANCING AUTHORITY, COACHELLA. EDUCATION AND GOVERNMENT ACCESS, CABLE CHANNEL CORPORATION, COACHELLA WATER AUTHORITY, SUCCESSOR AGENCY, COACHELLA REDEVELOPMENT AGENCY AND THE COACHELLA PARK AND RECREATION FOUNDATION. TODAY IS MARCH 11TH. WE'RE GOING TO GO AHEAD AND CALL THIS MEETING TO ORDER. I WE HEARD FROM COUNCIL MEMBER VIRGIN THAT SHE'S NOT GOING TO BE AT A CLOSED SESSION, NOR SHE MAY BE RUNNING LATE TO THE MEETING. THAT'S CORRECT. AND THEN WE'VE ALSO I HAVE NOT HEARD FROM COUNCIL MEMBER DELGADO, I HAVE NOT. HAVE YOU ANYBODY. NO. OKAY. WELL, HOPEFULLY SHE'LL BE HERE SOON. SHE. SHE DOES ARRIVE, SO SHE'LL

[ Approval of Agenda]

WHO MADE THE MOTION A MOTION. THERE'S A MOTION. IS THERE A SECOND? I'LL GO AHEAD AND SECOND. OKAY, COOL. THANK YOU. CAN WE GET A MOTION OR ALL THOSE IN FAVOR SIGNIFY BY

[ Adjourn to Closed Session]

[ Reconvene Regular Meeting]

[ Closed Session Announcements]

[ Proclamations/Presentations/Direction]

[00:05:05]

NOW THEREFORE, I, STEPHEN A HERNANDEZ MAYOR AND THE COUNCIL OF THE CITY OF COACHELLA DO HEREBY EXPRESS SINCERE APPRECIATION AND GRATITUDE TO WILLIAM B PATTERSON JR FOR HIS EXEMPLARY SERVICE AND CONGRATULATE HIM ON WELL-DESERVED RETIREMENTS, WISHING HIM THE BEST IN THE FUTURE. BILL, WE'RE GOING TO HAND THIS OVER TO YOU, AND THEN I'M GOING TO LET THE COUNCIL SAY A FEW THINGS ABOUT YOU AFTER YOU'RE DONE SPEAKING. SO THIS IS YOU. THANK YOU. YOU KNOW, LIKE I JUST TOLD THE MAYOR A SECOND AGO, YOU NEVER SAY NEVER. AND WHEN THAT PHONE RINGS, YOU PICK UP THE PHONE. IT'S JUST PART OF WHO WE ARE AS PUBLIC SERVANTS. SO, YOU KNOW, WHETHER THERE'S AN EMERGENCY OR SOMETHING HAPPENS, WE'RE CALLED INTO DUTY. AND, YOU KNOW, I OWE A LOT TO THE CITY. YOU KNOW, YOU'VE YOU'VE BEEN GREAT TO ME, YOU'VE BEEN WONDERFUL TO ME. AND I'M PROUD OF THE WORK THAT WE'VE DONE TOGETHER. AND I KNOW THE WORK IS NOT FINISHED. IN FACT, I LOADED UP YOUR PLATE RIGHT AT THE END BEFORE I GO, BECAUSE SOME OTHER STUFF THAT'S GOING TO BE COMING YOUR WAY. I WANTED TO MAKE SURE THAT I COMPLETED MY JOB, AND I WANTED TO KEEP MY PROMISES, AND I BELIEVE THAT I DID. I WANT TO THANK STAFF. I KNOW THAT WHEN I FIRST CAME IN, IT WAS A LITTLE ROCKY. AND, YOU KNOW, I KNOW THAT THE STAFF SUPPORTS ME. I HEARD FROM THEM THAT THEY'RE SORRY TO SEE ME GO, AND I APPRECIATE THAT BECAUSE THE TIDE TURNED AND IT WASN'T BECAUSE THERE WAS A HEAVY HAND OR ANYTHING ELSE. WE WORKED TOGETHER AND WE DID SOME GOOD WORK. WE WE FIXED SOME DEFICITS.

WE BALANCED THE BUDGET FOR, YOU KNOW, THE YEAR BEFORE YOU'LL GET AN UPDATE ON WHAT'S GOING ON WITH MID-YEAR, BUT I'M PROUD TO WORK WITH THIS GROUP. YOU HAVE A STRONG GROUP. I ALSO PUBLIC SAFETY HAS BEEN WONDERFUL TO BE BACK WITH. OUR ISO TOOK ME TO LUNCH EARLIER LAST WEEK AND IT WAS WONDERFUL TO BE WITH THEM. YES. CAL FIRE, YOU KNOW, JUST HAVING SUPPORT.

YOU KNOW, YOU WONDER, YOU SCRATCH YOUR HEAD. SOMETIMES IT'S LIKE, WHY DO YOU DO THIS? AND IT'S LIKE, WELL, YOU KNOW, YOU NEED TO STAY BUSY. YOU NEED TO STAY ACTIVE. BUT RESULTS. I LOVE THE FACT THAT, YOU KNOW, WE'VE BEEN ABLE TO DO WHAT WE DO AND THERE'S STILL A LOT TO DO. WE HAD WE HAD A LOT OF CHANGES DURING THE YEAR, AND I ENCOUNTERED SOME STUFF THAT I'D NEVER ENCOUNTERED IN MY NEARLY 30 YEAR CAREER DURING THIS LAST YEAR, UP UNTIL VERY RECENTLY, YOU KNOW, THERE WAS ALWAYS SOMETHING DIFFERENT COMING AT YOU EVERY DAY I WANT TO YOLANDA IS NOT HERE, BUT I WANT TO THANK YOLANDA. YOLANDA HAS BEEN A BEACON. THERE'S BEEN A LOT OF HR STUFF GOING ON. AND YES. YEAH, SHE STOOD UP. SHE'S ADDRESSED THE UNIONS. SHE'S HAD TO DO A LOT OF INVESTIGATIONS AND SOME OTHER STUFF. BUT IT'S ALL FOR THE BETTERMENT OF THE CITY AND TO PROTECT THE CITY. AND I'M PROUD OF THAT. THE WORK THAT WE'VE DONE, KENDRA HAS STEPPED UP. EVERYBODY HAS STEPPED UP. BUT NEW HIRE, YOU KNOW, KENDRA DID A GREAT JOB.

YOU'VE BEEN WONDERFUL AND YOU HAVE A BRIGHT FUTURE. YOU'RE VERY TALENTED AND YOU'RE YOUNG.

YOU'RE YOU'RE YOU'RE VERY YOUNG WOMAN THERE AND YOU HAVE A BRIGHT FUTURE. SELENA, THANK YOU FOR EVERYTHING THAT YOU'VE DONE, THE GRANTS THAT YOU'VE RECEIVED AND DELIVERED. ANDREW.

YOU'VE GOT A LOT ON YOUR PLATE, BUT ANDREW JUST KEEPS PERFORMING AND HE'S GOING TO HAVE A LOT OF CIP PROJECTS IN FRONT OF HIM. BUT I HAVE FULL FAITH THAT HE WILL DELIVER EVERYTHING TO THE COUNCIL AND TO THE COMMUNITY. CASTULO SAME DIFFERENCE YOU'VE YOU'VE BUILT A WELL RECENTLY. YOU'VE TAKEN CARE OF SANITARY LINES. WE HAVE A STUDY. WE HAVE CHROME SIX THAT WE'RE GOING TO BE DEALING WITH. IT'S GOING TO BE TOUGH FOR EVERYBODY, BUT IT'S SOMETHING THAT THE STATE HAS THROWN AGAINST US AND THERE'S NOT MUCH THAT WE CAN DO ABOUT IT EXCEPT COMPLY AND FIGURE OUT CREATIVE WAYS TO FINANCE THIS, TO HAVE THE LEAST IMPACT ON OUR CONSTITUENTS. AND HE WORKS CONSTANTLY ON THAT. LINCOLN, IT'S BEEN A PLEASURE HAVING YOU

[00:10:04]

[00:15:04]

YOU ALSO CAME IN AT A TIME WHERE THERE WAS A LOT OF CHANGES, YOU KNOW, AT THE EXECUTIVE LEVEL AND EVEN IN THE DEPARTMENT LEVEL AND AT THE EMPLOYEE LEVEL, I KNOW THAT THERE WAS A LOT OF, I THINK, PUSHBACK AND A LOT OF QUESTIONING WHETHER YOUR NUMBERS WERE WERE ACCURATE. AND THEN, YOU KNOW, WE HAVE LINCOLN THAT COMES IN AND JOINS THE TEAM AND YOUR NUMBERS WERE ACCURATE. AND SO I THINK THAT I THINK YOUR HEART IS IN THE RIGHT PLACE TO MAKE SURE THAT AS A CITY THAT WE'RE MOVING FORWARD AND THAT WE'RE PROVIDING THE BEST QUALITY SERVICES. AND THAT'S CRITICAL BECAUSE WE CAN PROVIDE SERVICES, BUT TO NOT REACH TO GREATER THE SERVICES OR, YOU KNOW, MAKE THEM A TYPE OF REAL QUALITY TYPE OF SERVICES IS A WHOLE DIFFERENT LEVEL. AND I THINK THAT THE DIRECTORS, YOU KNOW, BECAUSE IT WAS, IT WAS TOUGH, YOU KNOW, IT WAS. AND THEN, YOU KNOW, WE WENT THROUGH IT WAS QUITE A BIT BEFORE WE GOT ONTO TO THE RIGHT PATH. YOU KNOW, SOME OF THE, THE EXPECTATIONS THAT WE GAVE YOU WAS TO, YOU KNOW, WORK WITH THE, THE DEPARTMENT HEADS AND YOU DID.

AND WE GAVE YOU OTHER EXPECTATIONS AND GOALS AND YOU DID. AND I KNOW THAT IN THE LAST MONTH, IT'S BEEN TOUGH FOR YOU BECAUSE YOU DON'T WANT TO LEAVE US IN A WAY WHERE WE'RE NOT PREPARED TO TAKE ON THE INTERIM. AND SO I KNOW THAT YOU'VE BEEN WORKING REALLY, REALLY HARD AND WE APPRECIATE THAT AND WE NEED IT. WE NEED IT. COUNCIL MEMBER PEREZ BROUGHT UP A GOOD POINT IS THAT YOU ALWAYS ANSWER OUR CALLS. I MEAN, ALWAYS ANSWER OUR CALLS. AND IF YOU DON'T ANSWER IT AT THAT MOMENT, YOU'RE CALLING US BACK WITHIN FIVE MINUTES. AND YOU ALWAYS PROVIDE ANSWERS AT THAT MOMENT. IF I SEND YOU AN EMAIL, YOU RESPOND IMMEDIATELY. I MEAN, NOT EVERYBODY DOES THAT, BUT I ALWAYS KNEW THAT I COULD COUNT ON YOU TO CALL YOU AND THAT YOU HAD THE ANSWERS AND YOU DID. YOU ALWAYS HAD THE ANSWERS. AND I THINK THAT COMES WITH THE EXPERIENCE OF BEING HERE MANY YEARS AND THEN ALSO UNDERSTANDING NOT JUST THE CITY OF NEEDS, BUT WHERE WE'RE AT, YOU KNOW, AND YOU KEPT IT GOING. AND WE DO HAVE A LOT OF, YOU KNOW, GRANTS THAT WE HAVE IN PLACE THANKS TO SELENA. BUT THEN IT'S THE NEXT STEP AND MAKING SURE THAT THE DEPARTMENTS ARE DELIVERING ON THAT. AND THEN WE'RE MEETING ALL THE TIMELINES AND DEADLINES. SO IT'S A DIFFERENT LEVEL. AND YOU WERE ABLE TO JUST, YOU KNOW, KEEP IT GOING. THERE WAS NO HICCUPS. THERE WAS NO, YOU KNOW, SETBACKS. IT WAS JUST MOVING, MOVING, MOVING ADDITIONALLY. YEAH, YOU DO GET A LOT OF SUPPORT BECAUSE THERE WERE THINGS THAT WERE SITTING AND SITTING THERE AND SITTING THERE, YOU KNOW, FOR TWO YEARS, FOR THREE YEARS. AND YOU CAME BACK AND ONE OF THE, THE GOALS WAS FOR YOU TO, HEY, WE GOT TO MOVE ON THIS STUFF. AND IF AS STAFF, WE'RE WORKING ON SOMETHING FOR 2 OR 3 YEARS, YOU KNOW, AND IT'S NOT MOVING, THEN ALL I KEEP THINKING IS ALL THE OTHER OPPORTUNITIES THAT WERE NOT MOVING INTO BECAUSE WE'RE ON ONE, YOU KNOW, PROJECT OR, YOU KNOW, INVESTMENT OR WHATEVER IT IS. BUT, YOU KNOW, THERE IS A LOT OF PEOPLE OUT THERE THAT ARE APPRECIATIVE AND ARE SAD TO, TO SEE YOU LEAVE. AND WE'RE GETTING THE PHONE CALLS. YOU KNOW, THEY'RE ALL WORRIED THAT YOU'RE LEAVING AND HEY, WHAT'S, WHAT'S NEXT? WHAT'S GOING TO HAPPEN? AND, AND THAT'S TOUGH BECAUSE WE NEED TO MAKE SURE THAT WE'RE BRINGING IN AN INTERIM THAT UNDERSTANDS AND KEEPS IT, KEEPS IT GOING. AND THAT'S A WHOLE NOTHER LEVEL AS WELL. AND I'M SURE THAT THAT WILL, YOU KNOW, I'M SURE THEY'LL DELIVER WITH THAT TOO. I'VE KNOWN YOU NOW FOR WHEN I WAS IN THE PLANNING COMMISSION, I THINK 2015. SO MAYBE ABOUT A GOOD TEN YEARS THAT I'VE KNOWN YOU NOW. SO I'VE, I'VE KNOWN YOU IN, IN MANY DIFFERENT ROLES. AND SO I DO THANK YOU. I DO WISH YOU THE VERY BEST. I THINK THAT THIS TIME YOU ACTUALLY ARE GOING TO RETIRE. I THINK THIS IS IT. I THINK IT WAS TWO YEARS OR, YOU KNOW, I DON'T THINK YOU'RE I THINK YOU'RE TRULY GOING TO RETIRE AFTER THIS. SO I DO, I DO THANK YOU. AND THEN FOR CAL FIRE IN THE BACK TOVAR SAID THAT HE'S GOING TO THEY'RE GOING TO TAKE YOU OUT TO LUNCH AFTER TWO. SO BEFORE THE 17TH FOR 17TH. BILL'S LAST DAY IS IS THE 17TH. AND SO THAT'S NEXT WEEK ON TUESDAY. AND THEN, YOU KNOW, HOPEFULLY WE YOU KNOW IF EVERYTHING WORKS OUT THEN WE HAVE THE INTERIM COMING IN IMMEDIATELY ON WEDNESDAY. SO THANK YOU BILL. I HOPE YOU FELT APPRECIATED. I HOPE YOU FELT SUPPORTED AND I WISH YOU THE VERY BEST. ALL RIGHT. BILL, I THINK I'VE KNOWN YOU THE

[00:20:02]

AND THEN, YOU KNOW, WE WE TACKLED SOME BIG, HAIRY, AUDACIOUS GOALS, WHICH IS, YOU KNOW, BUILD OURSELVES A LIBRARY, BUILD OURSELVES SOME INFRASTRUCTURE AND NOT BE IN DEBT. AND SO WE PUT TOGETHER A REALLY GREAT PLAN THAT LOOKED AT HOW WE CAN GO AFTER, YOU KNOW, GRANTS. AND WE WERE ABLE TO WE WERE SUCCESSFUL, WE WERE SUCCESSFUL. WE DID MEASURE YOU TOGETHER. WE DID. YOU KNOW WHAT ELSE MEASURE T, YOU KNOW, WE PUT THE CITY ON A ON A STRONG FINANCIAL SETTING, ALWAYS ENSURING THAT, YOU KNOW, WE, WE, WE WERE CONSERVATIVE. AND THAT'S BEEN THE WINNING RECORD OF BEING CONSERVATIVE. WE GOT TO A POINT, THOUGH, THAT WE HAD A LOT OF MONEY IN RESERVES. AND IF YOU HAVE A LOT OF MONEY IN RESERVES, THAT'S NOT NECESSARILY GOOD BECAUSE THEN THE COMMUNITY IS SAYING, WELL, WHERE ARE THE PROJECTS? SO WE PUT SOME MONEY OUT ON THE STREET, WHICH WAS GOOD, RIGHT? WE, WE, WE PAVED AVENUE 52 AND DID SOME REALLY GOOD PROJECTS. I UNDERSTAND VAN BUREN'S COMING AS WELL. AND WE SAVED SOME MONEY RECENTLY ON ON A COUPLE OF TRACK, SOME HOME TRACKS, AND WE'RE GOING TO BE ABLE TO DO SOME MORE THINGS. BUT I THINK THE CONSERVATIVE APPROACH IS IT SERVED US WELL. YOU KNOW, IT'S ALWAYS BETTER TO COME WITH GOOD NEWS TO THE COUNCIL VERSUS VERSUS, HEY, WE GOT A DEFICIT AND I APPRECIATE THAT ABOUT YOU THAT YOU'VE ALWAYS PLAYED IT VERY, VERY CONSERVATIVE WHEN IT COMES TO THE DOLLARS. AND AND RIGHTFULLY SO, RIGHTFULLY SO, BECAUSE THERE'S NOTHING WORSE THAN HAVING TO TAKE ON AN AUSTERITY PLAN AND CUT, YOU KNOW, AND THAT'S NOT FUN.

THAT'S NOT FUN. IT REALLY DISTURBS SERVICES, IT INTERRUPTS THEM. AND THEN PEOPLE'S QUALITY OF LIFE, YOU KNOW, YOU YOUR JOB AS A CITY MANAGER IS IT'S, IT'S, IT'S NOT AN EASY ONE. YOU GOT FIVE BOSSES AND THEN YOU ALSO HEAR FROM THE COMMUNITY AND THEN YOU GOT TO RUN STAFF, YOU GOT TO RUN STAFF AND ALL THE DIFFERENT ORGANIZATIONAL MEMBERS. AND IT'S, IT'S A HARD JOB AND YOU'VE DONE A GOOD JOB THROUGHOUT THE YEARS OF, OF, OF KEEPING THINGS MOVING, KEEPING THINGS ORGANIZED, BUT MORE IMPORTANTLY, DELIVERING GOOD SERVICES AND PROJECTS. BECAUSE UNDER YOUR TENURE, I THINK WE DID THE LIBRARY TOGETHER, PUT THE BOND TOGETHER. WE JUST WON A LAWSUIT RECENTLY BECAUSE OF BILL, YOU KNOW, GOOD STRATEGY, WHICH IS REALLY WELL, IT WENT REALLY, REALLY WELL. AND, YOU KNOW, YOU KNOW, WE WERE ABLE TO ALSO, YOU KNOW, DO VETERANS PARK REMEMBER THAT? YOU KNOW, WE WERE ABLE TO DO THE 52 BRIDGE. REMEMBER THAT WE WERE ABLE TO DO BAGUMA PARK, REMEMBER THAT AND PUT FREDERICK THROUGH, YOU KNOW, WE WERE ABLE TO DO 48. WE GOT THAT DONE. AND IT WAS ALL THROUGH JUST BEING PRACTICAL AND MAKING SURE THAT WE CAN FUND THAT. AND THEN MORE IMPORTANTLY, I THINK WHAT I SEE IS THAT THROUGHOUT THE YEARS, WE'VE ENJOYED RELATIVELY GOOD LABOR, PEACE, YOU KNOW, AND THAT'S SOMETHING THAT IS VERY, VERY IMPORTANT BECAUSE IF YOU WANT TO SEE A CITY NOT FUNCTION, GO TO ONE WHERE YOU DON'T HAVE LABOR PEACE. AND SO I, I LOVE THE FACT THAT YOU ACKNOWLEDGE YOUR STAFF AND FOLKS IN HR THAT HAVE BEEN BEACONS IS WHAT YOU SAID. AND MAKING SURE THAT WE'RE, WE'RE ENSURING THAT LABOR PEACE IS HERE. AND, YOU KNOW, WE'LL FIND OUT HOW THINGS ARE GOING TO GO IN A FEW MONTHS AS WE START RENEGOTIATION AND OUR LABOR CONTRACT ARE AGREEMENTS. BUT THOSE ARE GOOD STRATEGIES, BILL. YOU'VE ENJOYED SOME STABLE TIMES AND YOU'VE ENJOYED SOME SOME UNSTABLE TIMES POLITICALLY. AND IT COMES WITH THE TERRITORY, RIGHT? I MEAN, WE'RE HUMANS. POLITICS IS A REAL THING, RIGHT. AND BUT NONETHELESS, YOU KNOW, YOU'VE DONE YOUR BEST TO, TO MANAGE AND TO PUBLICLY ADMINISTER THE FINANCES AND THE ORGANIZATION. SO WE'RE GOING TO MISS YOU. THE GOOD THING IS YOU DO STILL RESIDE HERE IN COACHELLA AND AVENUE 50. AND, AND SO WE'LL PROBABLY SEE YOU WALKING AROUND THE NEIGHBORHOOD AND, YOU KNOW, PROBABLY START COMPLAINING ABOUT THE ISLANDS OR SOMETHING LIKE THAT. BUT, BUT, BUT YOU KNOW, IT'S, WE'RE, YOU KNOW, YOU'RE PART OF THE TOWN. SO THANK YOU FOR YOUR WORK. YOU MADE A LOT OF GOOD FRIENDS HERE. YOU KNOW, I'M SURE SOME OF US WILL STILL GET A WHEN WE CALL YOU, YOU'LL STILL ACCEPT IT. SOME OF US MAYBE NOT, YOU KNOW, BUT BUT NONETHELESS, YOU KNOW, WE APPRECIATE ALL THE WORK THAT YOU'VE DONE. SO THANK YOU, BILL, AND CONGRATULATIONS. THANK YOU.

[00:26:45]

MEMBERS OF THE COUNCIL. ABOUT A YEAR AGO, THE CITY ENTERED INTO A PROFESSIONAL SERVICE AGREEMENT WITH NUGENT STRATEGIES. THEY'RE AN ECONOMIC CONSULTING FIRM THAT SPECIALIZES IN UTILITY, COST OF SERVICE AND RATE DESIGN STUDIES. CITY STAFF, THE CITY MANAGER, THE FINANCE DIRECTOR AND MYSELF, TOGETHER WITH THE NEW GEN TEAM, HAVE ANALYZED REVENUES AND EXPENSES AND HAVE DEVELOPED POTENTIAL RATE INCREASES THAT ARE NEEDED TO PROPERLY OPERATE THE WATER AND SEWER ENTERPRISE. WE'VE PUT TOGETHER A POWERPOINT TO GIVE YOU AN UPDATE ON THE STUDY, TO RECEIVE YOUR INPUT, AND TO LAY OUT A POTENTIAL SCHEDULE FOR NEXT STEPS. WITH US TODAY IS ERIC, WHO IS LEADING THE NEW GEN TEAM. HE WILL BE GOING OVER THE PRESENTATION, AND BILL LINCOLN AND I ARE READY TO ANSWER QUESTIONS AS THEY COME UP. SO WITH THAT, I'M GOING TO INVITE MR. COLLOQUIA TO THE PODIUM. THANK YOU. CASTULO THANK YOU, MR. MAYOR AND COUNCIL. IT'S A PLEASURE TO BE HERE. MY NAME IS ERIC COLLOQUIA, A PARTNER AT DNGUYEN. I'VE BEEN WORKING WITH CITY STAFF AND I JUST WANT TO SAY ALL THE GREAT THINGS ABOUT BILL I'VE EXPERIENCED THROUGHOUT THIS. THIS HAS BEEN A COORDINATION BETWEEN ALL DEPARTMENTS AND STAFF TO HELP US GET OUR JOB DONE. SO THANK YOU TO THEM. I'M HERE TONIGHT TO GIVE THIS BRIEF PRESENTATION. I KNOW THERE'S A LOT OF INFORMATION HERE. I'LL MOVE THROUGH IT AT A SUMMARY LEVEL. AND OF COURSE I'LL BE ABLE TO AVAILABLE TO ANSWER YOUR QUESTIONS. THE AGENDA HERE IS PRETTY EXTENSIVE. I WANT TO TALK VERY BRIEFLY ABOUT THE LIMITATIONS OF THE NUMBERS WE'RE SEEING TONIGHT. THIS IS A DRAFT. THINGS WILL LIKELY CHANGE AS YOU TURN OVER FISCAL YEARS. AND WE LOOK AT ADDITIONAL INFORMATION. I'LL GIVE YOU A BRIEF SUMMARY OF OUR DRAFT RESULTS AND THEN WALK THROUGH THE STEPS OF THE PROCESS EXPENSES AND REVENUES. WE'RE TALKING WORST CASE SCENARIOS ABOUT FULLY FUNDING CHROMIUM SIX IMPROVEMENTS, WHICH WE'LL GET TO. WE'LL TALK ABOUT OUR INITIAL ANALYSIS OF CASH FLOWS, NEXT STEPS, AND THE POTENTIAL PLAN FOR COMMUNITY OUTREACH RELATED TO THIS EFFORT.

EVERYTHING IN HERE IS A DRAFT. WE'VE COLLECTED THE BEST AVAILABLE DATA TO DATE. WE STILL HAVE SOME THINGS THAT WE ARE GOING TO BE ADJUSTING AS GOING FORWARD, WHETHER IT'S CAPITAL PLANS, THE IMPACTS OF CHROMIUM SIX, STAFFING PLANS AND THINGS LIKE THAT. SO EVERYTHING HERE IS BASED ON MOST AVAILABLE DATA AT THIS TIME. HIGHLIGHT SOME OF OUR KEY RESULTS FOR THE WATER SYSTEM. A KEY POINT OF OUR STUDY IS WE LOOK AT CASH FLOW, A CASH BASIS OF ACCOUNTING, WHAT REVENUES NEED TO COME IN TO SUPPORT THE EXPENSES GOING OUT EACH YEAR.

FOR THE WATER SYSTEM, WE'RE ESTIMATING A DEFICIT OF 1.6 MILLION IN THIS FISCAL YEAR AND 3.1 MILLION IN THE NEXT FISCAL YEAR. ABSENT ANY RATE INCREASES, THE FIVE YEAR FORECAST. OUR STUDY IS GOING TO PRODUCE A FIVE YEAR RATE RECOMMENDATION FOR WATER IS APPROXIMATELY 131% ABOVE TODAY'S RATES TO FUND FUTURE OPERATING CAPITAL IMPROVEMENTS, AND PARTICULARLY CHROMIUM SIX IMPROVEMENTS. I'M GOING TO BRIEFLY TALK ABOUT IMPACT FEES. WE'RE ALSO LOOKING

[00:30:02]

FOR THE SEWER SYSTEM, THE ESTIMATED OPERATING CASH FLOW FOR THIS FISCAL YEAR IS JUST OVER $650,000, AND IT'S ABOUT BREAK EVEN. WE'RE WITHIN $12,000 NEXT FISCAL YEAR WITHOUT SEWER RATE INCREASES OVER OUR FIVE YEAR PROJECTION, WE'RE LOOKING AT 35% RATE INCREASES IN SEWER. AND AGAIN, IMPACT FEES. WE'RE LIKELY GOING TO COME BACK WITH A RECOMMENDATION ON THOSE. BUT YOU DO HAVE MECHANISMS TO FUND NEAR-TERM EXPANSION RELATED PROJECTS WITH EXISTING RESERVES. WHAT IS DRIVING THESE RATE INCREASES AT A SUMMARY LEVEL? THIS CHART SHOWS TWO FISCAL YEARS, THE CURRENT ESTIMATED RATE REVENUE YOU GET FROM YOUR WATER RATES, YOUR USER RATES COMPARED TO WHAT WE ESTIMATE YOU WILL NEED IN FISCAL YEAR 2031 IS YEAR FIVE OF OUR FORECAST. YOU CAN SEE HERE ABOUT 44% OF THAT INCREASE IN THE RED BAR THERE. THAT'S EXISTING OPERATIONS, EXISTING LABOR AND AND THINGS LIKE THAT.

MATERIALS, EXISTING DEBT SERVICE, THINGS LIKE THAT. THIS IS WHAT YOU'RE DOING TODAY AND AN INCREASED COST FIVE YEARS FROM NOW. YOU RECENTLY COMPLETED A MANPOWER STUDY THAT IDENTIFIED SOME ADDITIONAL STAFF FOR THE WATER AND SEWER UTILITIES. THOSE ARE INCLUDED IN OUR FIVE YEAR FORECAST. THAT'S THAT GREEN BAR THERE. ANOTHER ADDITIONAL 11% WE ARE BUILDING INTO OUR STUDY. WHAT WE'RE REFERRING TO IS ASSET REPLACEMENT, WHETHER THAT'S CAPITAL SPENDING OR CONTRIBUTIONS TO CAPITAL RESERVES. WE ARE BUILDING IN THE ASSUMPTION THAT YOU ARE GOING TO BE NEEDING TO REINVEST INTO THESE SYSTEMS OVER THE FIVE YEAR PERIOD. THAT'S THE ADDITIONAL MILLION DOLLARS. THE TWO BARS ON TOP IS CHROMIUM SIX OPERATING COSTS, ADDITIONAL COSTS THAT THE CITY WILL HAVE TO BEAR TO OPERATE THE CHROMIUM SIX IMPROVEMENTS ON YOUR WELLS. AND ASSUMING THAT YOU HAVE TO FULLY FUND THE CAPITAL COSTS FOR CHROMIUM, SIX IMPROVEMENTS ON YOUR WELLS IS ABOUT $3 MILLION IN ADDITIONAL DEBT SERVICE PER YEAR. YOU ADD UP ALL THOSE IMPACTS, AND THAT GETS US TO OUR 131%. THAT'S ADDITIONAL RATE REVENUE YOU WOULD NEED TO MEET ALL OF THESE OBLIGATIONS FIVE YEARS FROM NOW.

THE NEXT SLIDE SHOWS THE SAME INFORMATION. BUT FOR THE SEWER SYSTEM HERE, THE OPERATING DEFICIT IS ABOUT 8% OF THE REVENUE INCREASE NEED. AGAIN, THIS IS JUST ASSUMING EXISTING COSTS FORECASTED FORWARD AT A HIGHER EXPENSE. THE MANPOWER STUDY ALSO IDENTIFIED SOME POSITIONS ON THE SEWER SIDE. AND WE'RE BUILDING IN $1.5 MILLION OF ASSET REPLACEMENT CAPITAL COSTS FOR IMPROVING COLLECTION SYSTEM ASSETS. SO NOW I'LL DIG A LITTLE BIT INTO THE BACKGROUND OF THE STUDY AND OUR PROCESS AND SOME OF THE DATA THAT WE USE TO DEVELOP THESE RECOMMENDATIONS. YOU PROVIDE SERVICE TO SLIGHTLY OVER 9000 CUSTOMER CONNECTIONS, RESIDENTIAL AND COMMERCIAL WITHIN THE CITY LIMITS. THIS IS A KEY POINT. WATER RATES HAVE NOT INCREASED SINCE 2015, AND THOSE INCREASES WERE BASED ON A 2010 COST OF SERVICE STUDY. THE LAST SEWER RATE INCREASE WAS IN 2021. BASED ON A 2020 2017 STUDY. SO WE'RE GOING TO SHOW SOME IMPACTS OF LOOKING OVER A LONGER PERIOD OF TIME. AND THIS JUST SUMMARIZES OUR SCOPE OF WORK. WE'RE LOOKING AT FUTURE WATER RATES. WE'RE GOING TO RECOMMEND FIVE YEARS AND IMPACT FEES. THIS GRAPHIC SHOWS THE BASIC COMPONENTS OF A COST OF SERVICE COST OF SERVICE STUDY.

THE FIRST ONE IS DEVELOPING THE REVENUE REQUIREMENT AGAIN ON A CASH BASIS. WHAT CASH DO YOU NEED TO RUN THESE SYSTEMS? OPERATING DEBT CAPITAL IMPROVEMENT NOW AND IN THE FUTURE. THAT'S CALLED THE REVENUE REQUIREMENT. WE THEN LOOK AT THE COST OF SERVICE THAT'S ASSIGNING THOSE COSTS TO YOUR CUSTOMERS BASED ON THEIR DEMANDS OF THE SYSTEM. WE DEVELOP A FINANCIAL PLAN WHERE WE FORECAST FIVE YEARS FORWARD AND RECOMMEND RATES. UTILITY PRICING IS THE SPECIFIC RATES AND FEES THAT WHEN YOU CHARGE THOSE FEES TO YOUR CUSTOMERS, YOU'RE GOING TO GENERATE REVENUES CONSISTENT WITH THE FINANCIAL PLAN. SOME OF THE GUIDING PRINCIPLES WE USE IN CONDUCTING THE STUDY, COST CAUSATION AND FAIRNESS COSTS, DRIVE RATES. WE WANT TO EMBED ALL OF THE COSTS OF OWNING AND OPERATING THESE SYSTEMS INTO YOUR RATES. WE NEED TO BE LEGALLY COMPLIANT. AT THE END OF THIS PROCESS, YOU'RE GOING TO HAVE TO GO THROUGH A PROP 218 PROCESS WITH PUBLIC NOTICE. WE'RE GOING TO PRODUCE A REPORT THAT LAYS OUT ALL OF OUR CALCULATIONS. FOR YOUR RATES. THEY NEED TO BE COMPLIANT WITH PROP 218. WE'RE LOOKING AT FINANCIAL SUSTAINABILITY AND STABILITY OVER TIME. WE DON'T WANT TO TAKE SHORTCUTS IN THE NEAR TERM TO CREATE LONG TERM PROBLEMS. SO WE'RE BUILDING IN THAT ASSET REINVESTMENT AND THE NEED TO INCREASE REVENUES TO PROPERLY RUN THE SYSTEMS. AND FINALLY, TRANSPARENCY AND UNDERSTANDABILITY, WE NEED TO COMMUNICATE THIS TO YOU AND TO

[00:35:04]

WE ARE BUILDING IN THE DEPRECIATION AND ADDITIONAL OR EXCUSE ME, ADDITIONAL CAPITAL AND OPERATING COSTS RELATED TO THE REGULATORY MANDATE OF CHROMIUM SIX. AND THAT'S FOR ALL SEVEN OF YOUR ACTIVE WELLS. I WANT TO BE CLEAR, THERE'S SOME OTHER BACKGROUND HERE ON CHROMIUM SIX, BUT I WANT TO BE CLEAR THAT THE CITY IS ACTIVELY PURSUING GRANTS. OUR STUDY IS PART OF THAT PROCESS TO GET GRANTS TO FUND THOSE IMPROVEMENTS. HOWEVER, OUR STUDY IS SORT OF WHAT I SAID, THE WORST CASE SCENARIO, IF THOSE GRANTS ARE NOT FORTHCOMING, THIS IS WHAT'S INCLUDED IN THE RESULT. BUT AGAIN, THE CITY IS ACTIVELY PURSUING AND DOING ABSOLUTELY EVERYTHING THEY CAN TO PURSUE THOSE GRANTS. WE, THE OPERATING AND CAPITAL COSTS COME FROM AN ENGINEERING STUDY THAT THE CITY PROCURED TO, TO LOOK AT THE ESTIMATED COST OF THIS OF THESE IMPROVEMENTS. THIS SLIDE SHOWS THAT FINANCIAL FORECAST OVER FIVE YEARS NOW IN THE SAME COMPONENTS THAT WE WERE DISCUSSING BEFORE, THE ASSET REPLACEMENT WE'RE INCLUDING ON THE WATER SYSTEM IS $2 MILLION A YEAR, AGAIN, EITHER IN CAPITAL SPENDING OR RESERVE CONTRIBUTIONS TO BUILD UP A SUSTAINABLE WATER SYSTEM. THE TOTAL REVENUE SHOWN HERE, THAT RED LINE GOING ACROSS, THAT'S ASSUMING ZERO RATE INCREASES ON THE WATER SYSTEM. HOWEVER, THOSE STACKED BARS REPRESENT THE INCREASED OPERATING CAPITAL COSTS. THE CHROMIUM SIX CAPITAL IS ASSUMING THE CITY HAS TO FULLY FUND $49.1 MILLION, FINANCED AT 4% OVER 30 YEARS. THIS IS AN INITIAL, AGAIN, DRAFT OF WHAT USER RATES MAY LOOK LIKE UNDER THIS FINANCIAL FORECAST. THESE RATES ARE CALCULATED TO INCREASE JULY 1ST, 2027, WHICH IS THE FIRST YEAR OF FISCAL YEAR 2028, CONSISTENT WITH THE TIMELINE OF THE STUDY, YOU CAN SEE THE INCREASES IN THE MONTHLY METER CHARGES AND THE VOLUMETRIC RATES THAT YOU WOULD ADOPT TO FUND THESE IMPROVEMENTS AND THESE OPERATING COSTS. YOU CAN SEE THE OVERALL REVENUE INCREASE ON THE TOP LINE THERE, 65%, AND THEN A 28% IN SORT OF TWO TRANCHES TO ACCOUNT FOR THE OPERATING AND CAPITAL COSTS ASSOCIATED WITH CHROMIUM SIX.

ON THIS GRAPH, THE THREE FOURTHS IS YOUR TRADITIONAL HOUSE. YES. RIGHT. JUST FOR YEAH THREE FOURTHS. AND WE HAVE SOME SOME SOME BILL IMPACTS ON IN THE NEXT COUPLE SLIDES TO SHOW THAT YEAH THREE THREE QUARTERS INCH OF THE METER SIZE IS YOUR TYPICAL RESIDENTIAL CUSTOMER. IT'S A VAST MAJORITY OF YOUR CUSTOMERS. WHAT IS THE CASH FLOW FORECAST LOOK LIKE? ASSUMING THAT YOU INCREASE RATES CONSISTENT WITH THAT PLAN, YOU CAN SEE THE TOTAL REVENUES INCREASING TO ABOUT 15.9 MILLION BY THE END OF OUR FIVE YEAR FORECAST. WE'RE INCLUDING THOSE CONTRIBUTIONS TO RESERVES NOT ONLY TO SUSTAIN FUND BALANCE, BUT TO START BUILDING A CAPITAL RESERVE FOR FUTURE REPLACEMENT COSTS. YOU CAN SEE HERE. IN THE EARLY YEARS OF THIS FORECAST, THERE IS SOME PRESSURE ON BOTH DEBT SERVICE AND THE CASH RESERVE FUND BALANCE. WITHIN THE WATER FUND. IT'S BELOW THE MINIMUM RECOMMENDED AS PART OF OUR STUDY, WHICH IS CONSISTENT WITH INDUSTRY STANDARDS OF OF HOW MUCH RESERVES YOU SHOULD KEEP IN A SYSTEM OF YOUR SIZE. AGAIN, THIS IS ASSUMING ADOPTION OF THOSE RATES BEGINNING IN FISCAL YEAR 2018 AND CONTINUING THROUGH FISCAL YEAR 2031. SOME NOTES ON OUR CUSTOMER BILL COMPARISON. EVERYBODY HAS A DIFFERENT WATER RATE STRUCTURE. IT'S DIFFICULT TO DO APPLES TO APPLES. WE'VE MADE THE BEST ASSUMPTIONS WE CAN WITH OUR KNOWLEDGE OF THE INDUSTRY AND HOW OTHER PEOPLE CHARGE FOR WATER SERVICE. WHAT THIS NEXT CHART SHOWS IS IF YOU TOOK YOUR AVERAGE SINGLE FAMILY RESIDENTIAL USER WITH A THREE QUARTER INCH METER USING 2100

[00:40:04]

BUT IN TERMS OF AFTER EVERYTHING'S IMPLEMENTED, AFTER THE FIRST INCREASE, THE SECOND INCREASE, THE FISCAL YEAR 2031 IS ABOUT $100. WE TRY TO BE AS APPLES TO APPLES ON THIS BECAUSE LIKELY, IN FACT, I'M CERTAIN THAT ALL OF THESE OTHER JURISDICTIONS ARE GOING TO HAVE A NEW FIVE YEAR PLAN COMING OUT AND THEIR RATES ARE GOING TO BE INCREASING. WE'VE TRIED TO COMPARE YOUR FISCAL YEAR 28 TO THEIR FISCAL YEAR 28, BUT YOU'RE RIGHT, THAT SECOND INCREASE WOULD GET YOU TO WRITE ABOUT THE AVERAGE OF $100. SO THEN THAT SECOND INCREASE WOULD EQUATE TO THE 131% INCREASE. YEAH. YES. YEAH. BECAUSE WE'RE AT 45 AND THAT'S THE AVERAGE BILL RIGHT NOW. THAT'S YOUR YOUR AVERAGE SINGLE FAMILY RESIDENT ON A MONTHLY BASIS.

AND THAT INCLUDES LANDSCAPING AND ALL THAT OTHER STUFF, RIGHT? ALL METERED WATER USE. YES. SO IT'S A DOUBLE. AND THIS IS ASSUMING THAT WE HAVE TO PAY FOR THE FULL DEBT SERVICE OF THE CHROME SIX UPGRADE. EXACTLY. OKAY. WE PROVIDED THIS CHART TO TO GIVE A LITTLE BIT OF CONTEXT, THESE NUMBERS MAY BE HARD TO SEE, BUT I'LL DO MY BEST TO EXPLAIN. I MENTIONED PREVIOUSLY THE LAST WATER RATE INCREASE WAS IN 2015. IF WE GO BACK TO THAT TIME AND NORMALIZE AND LOOK AT THE RESULTS OF OUR THE DRAFT RESULTS OF OUR STUDY, WE'RE LOOKING AT A SORT OF 2.3 TIMES FACTOR, 130% HIGHER. IF WE GO BACK TO THAT LAST RATE INCREASE AND SPREAD THAT OVER THAT ENTIRE AMOUNT OF TIME, YOU CAN SEE A 5.7% INCREASE PER YEAR WOULD GET YOU TO THE SAME REVENUE TARGET THAT WE'RE LOOKING AT IN 2031. AGAIN, THAT INCLUDES FULL FUNDING OF CHROME SIX. IF YOUR INCREASES WERE LIMITED TO THE LONG TERM CPU OVER THAT TIME PERIOD, WHICH I KNOW IT'S HARD TO IMAGINE SUB THREE INFLATION, BUT GOING BACK THAT FAR, THAT'S WHAT IT ENDS UP BEING. YOU SEE, YOU WOULD ADOPT THOSE UNTIL FISCAL YEAR 26, AT WHICH TIME IN FISCAL YEAR 27 THROUGH 31, A 12% INCREASE WOULD HAVE GOTTEN YOU FULLY. FUNDING OF THIS FORECAST.

ON THE BOTTOM IS OUR DRAFT STUDY RESULTS. AGAIN, 0% FROM 2017 UNTIL 2027. AND THEN THE AVERAGE RATE INCREASE OR REVENUE INCREASE 65, SIX, 27 AND TWO. THAT GETS YOU TO ALL THREE OF THESE FORECASTS, GET YOU TO THAT SAME REVENUE IN THAT FISCAL YEAR 2020, EXCUSE ME, 2031. NOW WE'LL TRANSITION OVER TO SEWER. THIS CHART SHOWS THE SAME BASELINE SCENARIO FOR SEWER. THE COMPONENTS HERE AGAIN ON THE SEWER SIDE, YOUR 2026 CAPITAL PROGRAM IS ENTIRELY GRANT FUNDED. SO THERE'S NO IMPACT ON RATEPAYERS TOTAL REVENUE NEEDS OF ABOUT $6.9 MILLION. ESTIMATED RATE REVENUE OF ABOUT $7.5 MILLION. THIS IS THE SAME REVENUE REQUIREMENT, FORECAST AND REVENUE FORECAST FOR SEWER. THAT DROP. IS THE GRANT MONEY GOING AWAY WHERE WE'RE NOT FORECASTING ANY ADDITIONAL GRANT MONEY IN THESE FORECASTS, YOU CAN SEE THE REVENUE LINE DROPS ALMOST EXACTLY TO THE EXPENSE LINE IN OUR NEXT FISCAL YEAR FORECAST. HOWEVER, INCREASING OPERATING COSTS AND ADDITIONAL ASSET REPLACEMENT PUSHES THOSE EXPENSES ABOVE THAT REVENUE LINE FOR THE REMAINDER OF THIS FORECAST.

ASSET REPLACEMENT FOR SEWER. WE'RE BUILDING IN $1.5 MILLION PER YEAR. THIS IS A DRAFT OF OUR SEWER RATE FORECAST FOR SEWER SERVICE. YOUR SINGLE FAMILY RESIDENTS PAY A FIXED FEE PER MONTH REGARDLESS OF THEIR METERED WATER USAGE. THAT'S THAT FIRST LINE UP THERE ON A MONTHLY BASIS, INCREASING FROM JUST UNDER $50 TO ABOUT $65.60 $6 OVER THE FIVE YEAR FORECAST. THAT'S A CUMULATIVE OF ABOUT 35% INCREASE. THIS IS A SEWER CASH FLOW AND FUND BALANCE. ASSUMING THE ADOPTION OF THOSE RATES. I'LL TAKE A MOMENT HERE TO EXPLAIN THIS TRANSFER TO FROM IMPACT FEES. WE'LL DISCUSS IN A MOMENT THE IMPACT FEE FORECAST. YOU

[00:45:03]

ALL OF THESE DEFICITS AND CASH FLOW ARE RELATED TO EXPANSION PROJECTS THAT WILL LATER BE REPAID USING IMPACT FEE REVENUE OVER TIME. SO OVER TIME, THERE WILL BE NO IMPACT TO YOUR SEWER USERS OF EXPANSION RELATED CAPITAL PROJECTS ON THE SEWER SIDE. BUT YOU CAN SEE HERE, EVEN WITH THE USE OF THOSE REVENUES, THE SEWER FUND REMAINS HEALTHY ABOVE THE MINIMUM RECOMMENDATION FUND BALANCE AND DEBT SERVICE COVERAGE. THIS CHART SHOWS THE SAME SAMPLE BILL COMPARISON OF A TYPICAL SEWER CUSTOMER. SINGLE FAMILY RESIDENTIAL.

THERE'S A LOT MORE CONSISTENCY HERE AMONG THESE JURISDICTIONS AND HOW THEY CHARGE FOR FOR SEWER COLLECTION, SERVICE AND TREATMENT SERVICE. SO YOU FALL RIGHT WITHIN THAT AVERAGE RANGE AT THE 2028 INCREASE, WHICH IS ABOUT TWO INCREASES OF THE OF THE FIVE OF THE FORECAST, WE'VE DONE THE SAME THING TRYING TO ALIGN THIS WITH FISCAL YEAR 28 OF WHAT'S BEEN FIVE LOOK LIKE.

I THINK YOU JUMP UP TO ABOUT $60.60. YEAH, I CAN GET A GOOD NUMBER, BUT IT'S ANOTHER, YOU KNOW, 4 OR 5% INCREASE IF I GO BACK HERE. SO IT'S ANOTHER EIGHT AND FIVE ACTUALLY BEYOND THAT. SO IT DOES JUMP UP TO TO PROBABLY ABOUT THE 60, MAYBE LOW 60S BY THE FISCAL YEAR 21, 2031 FORECAST. I'LL TALK BRIEFLY ABOUT IMPACT FEES AND THEN WE CAN MOVE TO QUESTIONS AND DISCUSSION. SO A VERY HIGH LEVEL SUMMARY OF YOUR IMPACT FEES. THEY MUST NOT EXCEED THE REASONABLE COST OF PROVIDING SERVICE ATTRIBUTABLE TO NEW DEVELOPMENT. THIS IS ADDING ASSETS TO YOUR SYSTEM TO PROVIDE ADDITIONAL SERVICE BEYOND YOUR CURRENT CAPACITIES.

ESSENTIALLY, WE NEED TO DETERMINE WHAT THOSE FUTURE CAPACITY NEEDS ARE, IDENTIFY THE GROSS THE GROWTH RELATED CAPITAL PROJECTS YOU NEED TO COMPLETE AND ALLOCATE THOSE TO THOSE GROWTH CUSTOMERS. ON THE WATER SIDE, YOU HAVE SUFFICIENT RESERVES AND ESTIMATED IMPACT FEE REVENUE TO SUPPORT GROWTH RELATED CAPITAL. ON THE WATER SIDE, WE ESTIMATE THAT YOU'LL END THIS YEAR WITH ABOUT $8 MILLION IN RESERVES, DOWN FROM TEN. THE FUTURE EXPANSION RELATED CP IS SIGNIFICANT. IT'S ABOUT $11.5 MILLION, BUT YOU DO HAVE RESERVES TO COVER THOSE PROJECTS OVER HERE. YOU SEE YOU YOU DRAW DOWN AND BUILD UP THOSE RESERVES OVER THIS FIVE YEAR FORECAST, ENDING WITH ABOUT $4 MILLION IN THE IMPACT FEE RESERVES AFTER HAVING COMPLETED $11.6 MILLION OF PROJECTS. AS I MENTIONED PREVIOUSLY, SEWER IMPACT FEE RESERVES HAVE ESSENTIALLY BEEN DEPLETED, AND THEY CAN'T SUPPORT NEAR-TERM GROWTH RELATED PROJECTS. INCLUDED IN OUR STUDY IS $7.6 MILLION OF THOSE SEWER EXPANSION PROJECTS FUNDED BY OPERATING RESERVES. A REPAYMENT OVER THAT TIME IS ABOUT $2.3 MILLION, LEAVING $5.3 MILLION LEFT TO BE REPAID OVER TIME. SO AS YOU EXTEND OUT OUR FORECAST, ALL OF THOSE IMPACT FEE REVENUES WOULD BE FUNNELED BACK INTO THE OPERATING RESERVE TO REPAY RATEPAYERS. AGAIN, THIS IS SUSTAINABLE GIVEN THE RESERVES THAT YOU HAVE IN THE SEWER OPERATING FUND. LAST TWO THINGS I'LL TALK ABOUT IS OUR ESTIMATED TIMELINE. BECAUSE OF THE TIMING IN THE PACKAGE YOU NEED TO SUBMIT IN ORDER TO GET THE GRANT TO FUND CHROME SIX, YOU NEED TO HAVE RATES ADOPTED BY JULY 2027. OUR TIMELINE IS CONSISTENT WITH THAT. WE ARE AGAIN INCLUDING THE WORST CASE NUMBERS IN OUR STUDY, AND WE WOULD BE RECOMMENDING YOU INCLUDE THOSE WORST CASE NUMBERS IN YOUR PROP 218 NOTICE FOR POTENTIAL ADOPTION. AGAIN, THAT IS THE CEILING, THE EFFORT TO GET THE GRANT WOULD BRING THAT CEILING DOWN. YOU CAN SEE SOME OF THE TIMELINE DATES HERE. WE'RE COMING BACK LATER THIS YEAR WITH A DRAFT AND FINAL REPORT ESTIMATING YOU APPROVE THE PROP 2018 MAILING NOTICE IN JANUARY. 27 RATE ADOPTION SOMETIME IN THE SPRING. RATES EFFECTIVE JULY 1ST NEXT YEAR. CONCURRENT WITH THAT PLAN, MY UNDERSTANDING IS THAT THE CITY EXPECTS TO RETAIN PUBLIC RELATIONS FIRM TO CRAFT THE COMMUNICATIONS MESSAGE SURROUNDING THIS ANTICIPATED OUTREACH AND IMPLEMENTATION.

FOURTH QUARTER THIS YEAR, POTENTIALLY FIRST QUARTER NEXT YEAR. AGAIN, THAT'S ONCE WE HAVE OUR FINAL RESULTS, WE'VE PACKAGED IT TOGETHER FOR THE PURPOSES OF THE GRANT APPLICATION AND HAVING NUMBERS THAT WE CAN BE CONFIDENT THAT REFLECT THE REALITY OF THE NEXT FIVE YEARS. THAT IS ALL I HAVE. THANK YOU VERY MUCH. AGAIN, I'M HAPPY TO ANSWER ANY QUESTIONS.

COUNCIL. SO YOU TALKED ABOUT THE FULL THE FULCRUM SIX COST, RIGHT? THAT'S THE. IF WE DON'T

[00:50:11]

AND SO WE'VE ALREADY NOTICED PEOPLE AND WE'RE WORKING ON THAT, TRYING TO FIND THAT WAY.

AND IT'S, IT'S REALLY AT THAT PERSPECTIVE. AND I WAS JUST LOOKING AT THE, YOU KNOW, THE WATER RATE DIFFERENCES BETWEEN. ON SLIDE 19. REALLY LOOKING AT, I'M JUST WONDERING WHAT, WHAT MIGHT BE THE PLAN? AS YOU KNOW, THIS ROLLS OUT AND WHAT HAPPENS WHEN PEOPLE CAN'T PAY WATER BILLS OR IF THEY DEFAULT? LIKE, WHAT WOULD THAT LOOK LIKE IN THEORY, IF THAT COULD HAPPEN.

BUT, BUT REALLY LOOKING TO SEE WHERE WE LAND IN THE COMPARED TO OTHER PEOPLE, RIGHT? IF YOU LOOK AT DESERT WATER AGENCY, THEY'RE ALREADY PAYING $113 OVER THERE AND IN A DIFFERENT PART OF THE DESERT. RIGHT. BUT, BUT THEN YOU LOOK AT CVS AND THEY'RE ONLY AT 6650. SO I KNOW THAT THE AVERAGE WILL BE 100, RIGHT? BUT YEAH, SO, SO TO ERIC'S POINT, THE, FOR EXAMPLE, THE RATE HERE THAT YOU SEE FOR THAT SAME USAGE FOR INDIO WATER AUTHORITY OR COACHELLA VALLEY WATER DISTRICT, WHICH ARE OUR NEAREST NEIGHBORING WATER AGENCIES, THAT DOESN'T INCLUDE THEIR OWN RATES STUDY THAT THEY'RE ABOUT TO EMBARK IN. THAT'S GOING TO MOVE THAT BAR.

WELL, THERE, THERE'S ALSO GET CLOSER TO LIKE OURS. IT WILL, IT WILL. AND I MEAN, JUST TO GIVE YOU A SENSE, A LITTLE SENSE OF THAT, YOU KNOW, OUR WE'RE CALCULATING THAT OUR OUR PROJECT IS ABOUT 49 MILLION. I THINK VW IS CALCULATING THEIR PROJECT IS GOING TO BE ABOUT 350 MILLION INDIA WATER AUTHORITY, YOU KNOW, WE HAVE WE'RE GOING TO TREAT SEVEN WELLS IN THE WATER. AUTHORITY'S PROBABLY GOING TO TREAT CLOSE TO 20 WELLS. SO SO THESE AGENCIES ARE GOING TO HAVE A HUGE FINANCIAL BURDEN. ALSO, THEIR RATES AND AND CVS IS IS JUST STARTING TO GO OUT TO BASICALLY DO A SIMILAR ANALYSIS TO US TO DETERMINE WHAT THOSE RATE INCREASES HAVE TO BE FOR THEM. SO WE DON'T HAVE THEIR DATA BECAUSE THEY HAVEN'T PRODUCED IT YET. SO WHAT YOU SEE HERE IS, IS THEIR INFORMATION WITHOUT THE COMPONENT OF WHAT IT'S GOING TO TAKE TO TREAT THEIR CHROMIUM. SO JUST KNOW THAT THOSE, THOSE LOOK LOW RIGHT NOW, BUT THEY'RE GOING TO, THEY'RE GOING TO GROW TO THE, IN THESE OTHER CITIES LIKE HEMET AND LIKE BANNING IN CORONA, RIGHT. ARE THEY ALSO GOING TO POTENTIALLY ALSO INCREASE BECAUSE EVERYONE'S IMPACTED BY CHROME SIX, RIGHT. NOT EVERYBODY, NOT EVERYBODY'S IMPACTED BY BY CHROMIUM SIX IN THE STATE OR, OR, OR THIS PARTICULAR ANALYSIS THAT WE'RE SHOWING HERE, THIS COMPARISON IS NOT BECAUSE THEY'RE ALL BEING IMPACTED BY CHROMIUM SIX.

THIS IS JUST NEARBY NEARBY LOCAL WATER AGENCIES. BUT BUT THE STATE HAS IMPLEMENTED DIFFERENT REGULATIONS THAT IMPACT DIFFERENT REGIONS. THERE'S, THERE'S SOME REGIONS IN HERE THAT MIGHT BE HAVING ISSUES. YEAH. WE HAVE NO PFAS ISSUES. OTHER PLACES, YOU KNOW, HAVE CHROMIUM ISSUES. OTHERS HAVE. SO IT'S JUST THERE'S, THERE'S A LOT OF NEW REGULATIONS COMING OUT THAT WE HAVE TO ADDRESS. AND SO THEN IN, IN THE NEXT SLIDE OVER AFTER THIS ONE, 1920, YOU GAVE US THAT GRAPH OF WHAT COULD HAVE BEEN THE INCREASES. SO AFTER 2021, IS THERE GOING TO BE A PROPOSED ANNUAL REVIEW OF INCREASES SO THAT IT KEEPS UP WITH THE THE CPI AND THE COSTS? YEAH, I MEAN, I THINK I THINK THAT WOULD BE RECOMMENDED.

OBVIOUSLY NOT IDEAL THAT THE LAST THE LAST COST OF SERVICE STUDY WAS IN 2010. AND I THINK THE PURPOSE OF, OF, OF KEEPING UP WITH THAT IS TO AVOID THESE, THESE HUGE SPIKES THAT THEN YOU HAVE TO, YOU KNOW, YOU HAVE TO TRY TO CATCH UP A LOT OF, A LOT OF WHAT'S GOING INTO THIS IS THE FACT THAT WE ARE CATCHING UP. AND SO THAT'S A, THAT'S A BIG PERCENTAGE OF, OF WHAT THE RATE INCREASE IS NEEDED FOR. SO YEAH, I THAT, THAT WOULD BE, THAT WOULD BE SOMETHING THAT WE SHOULD, THAT WE SHOULD CERTAINLY DO. JUST IN TERMS OF THE METHODOLOGY USED, YOU KNOW, THERE'S OBVIOUSLY WE'RE FACTORING A BUNCH OF DIFFERENT ASSUMPTIONS. WHAT'S THE GROWTH ASSUMPTION THAT WE'RE PUTTING INTO THIS? I'M JUST IN TERMS OF HOW YOU'RE GETTING TO YOUR RATE PROJECTION OR RECOMMENDATION. WE WE'VE BEEN CONSISTENT WITH YOUR RECENT IMPACT FEE COLLECTION ON ON BOTH SIDES. HOWEVER, I DON'T THINK WE'RE INCLUDING ANY USAGE GROWTH FOR

[00:55:02]

UNDERSTOOD. CAN YOU GO TO THE PERCENTAGE BREAKDOWN OF WHAT MAKES UP THE 133 ON THE WATER OR THE 131 I THOUGHT ABSOLUTELY. OKAY. SO I'M LOOKING AT THIS AND JUST KIND OF IF I GOT MY NUMBERS RIGHT. ON THE OPERATING DEFICIT SIDE, WE'RE ATTRIBUTING THAT JUST TO STANDARD MAINTENANCE OR, OR IS THAT LIKE DEPRECIATION SCHEDULES IN OUR OR JUST STANDARD? THAT IS WHAT YOU'RE DOING NOW. YOUR CURRENT STAFF, CURRENT DEBT SERVICE, DEBT SERVICE, CURRENT BUDGET FORECASTED FIVE YEARS FORWARD. SO YOU'RE ALREADY IN ESSENTIALLY A $3 MILLION HOLE FIVE YEARS FROM NOW BECAUSE YOUR COSTS ARE GOING TO BE INCREASING, BUT YOUR IF YOUR RATE REVENUE DOES. SO OUR COST WOULD BE INCREASING BASED OFF OF OBVIOUSLY LABOR AGREEMENTS, BUT THEN ALSO TREATMENT OR OTHER UTILITY UTILITY INCREASES, ETC. RIGHT. OKAY. AND THEN IT AND THEN THE OTHER. SO SO THAT'S 44. RIGHT. AND THEN THE OTHER. 14 NO, I THINK THE 76 THE NEXT ONE THAT'S YOU'RE NOT DOING THAT TODAY. THOSE ARE ADDITIONAL STAFF. THE OTHER ONE IS THE ASSET REPLACEMENT. I THINK THAT'S 11. AND THAT'S THAT'S THE DEPRECIATION THAT YOU'RE. YES THAT. AND THEN THE THE GREEN ONE WOULD BE THE MANPOWER INCREASE. YES.

ADDITIONAL STAFF. SO AND THAT'S ADDITIONAL STAFF BECAUSE THE CHROME SIX OR BECAUSE OF GROWTH.

THAT'S BECAUSE OF THE MANPOWER STUDY THAT YOU CONDUCTED THE THE 900,000 A YEAR IS OPERATING RELATED TO CHROME SIX, WHICH INCLUDES STAFF, CHEMICALS, UTILITIES. IT'S ALL IT'S ALL THE OPERATION OF THESE ADDITIONAL WELL, IMPROVEMENTS RELATED TO CHROME SIX. SO THERE'S THERE'S TWO LAYERS THERE. I'M TRYING TO DIFFERENTIATE BETWEEN WHICH INPUTS WE HAVE CONTROL OVER AS A CITY, AS A COUNCIL, OBVIOUSLY TO TRY TO LESSEN THE BURDEN BECAUSE YOU'RE TALKING A SIGNIFICANT AMOUNT OF OF RATE INCREASE. I MEAN, AND SO. I KNOW IT'S NOT GOOD BECAUSE WE BECAUSE OBVIOUSLY WE HAVE DEPRECIATED IT, YOU KNOW, ASSETS AND AND THEY'VE MET THEIR LIFE CYCLE. AND THERE'S A LOT OF DIFFERENT PRESSURES.

RIGHT. AND, AND SO AT THE SAME TIME, YOU KNOW, WHAT AFFORDABILITY OR WHAT RESIDENTS CAN, CAN AFFORD, YOU KNOW, IT'S SOMETHING THAT WE HAVE TO THINK ABOUT. AND, AND, AND SO I JUST

[01:00:03]

SIGNIFICANT IT IS. YEAH. YOU KNOW, AND, AND THAT IS AS A RESULT OF A STATE MANDATE. AND WE, AND WE AND I ALSO WANT AND MAYBE AS PART OF THE LAST PHASE OF THIS, WHICH IS THE PUBLIC OUTREACH, YOU KNOW, WE'VE DONE, WE HAD A THREE PRONGED APPROACH REGARDING HOW WE CAN. LIKE, LIKE CREATE LEAST IMPACT ON THIS WHOLE NEW CHROME SIX STANDARD. AND ONE OF THEM WAS, YOU KNOW, OBVIOUSLY LITIGATION. AND WE, WE JOINED IN SOME OF THOSE EFFORTS AND, AND WE WERE SUCCESSFUL AT, AT GETTING A STAY BECAUSE THE STATE. THEY DIDN'T DO A FISCAL OR A FISCAL ANALYSIS OR AN IMPACT ANALYSIS ON WHAT IT WOULD DO TO RATEPAYERS. AND SO WE WANT THAT.

BUT THEN A COUPLE OF LEGISLATORS KIND OF ACCOUNTED FOR THAT AND THEN BROUGHT US BACK, BROUGHT IT BACK. YOU KNOW, THE OTHER THING WE DID WAS KIND OF LOOK AT A LEGISLATIVE FIX.

BUT AND I THINK WE MADE A LOT OF HEADWAY. BUT ULTIMATELY THE, THE, THE LOBBY WAS SIGNIFICANT TO NOT DISTINGUISH BETWEEN NATURALLY OCCURRING VERSUS, YOU KNOW, PRODUCTION OR INDUSTRY OCCURRING. AND SO, AND THEN, BUT THEN WE WENT FROM THERE SAYING, OKAY, IF WE'RE NOT GOING TO BE ABLE TO DISTINGUISH THAT, THEN WHAT ABOUT GRANTS? AND THAT'S WE'VE BEEN SUCCESSFUL THERE IN TRYING TO GET GRANT DOLLARS ALLOCATED FROM DIFFERENT PROPS. NOW WE NOW WE'RE IN LIKE THE LIKE, WE NEED TO COMPLETE PHASE. AND, AND THE ONLY REASON I'M SAYING THIS, BECAUSE THAT'S GOING TO BE IMPORTANT HERE IN ORDER TO TRY TO MINIMIZE THE IMPACT ON OUR RESIDENTS. AND, AND I'M GOING TO SAY THIS RIGHT NOW THAT. THE TIMELINE OF JANUARY

[01:05:11]

WE HAVE A, A COMPLIANCE OBLIGATION. WE CALL IT A. WE SUBMITTED A COMPLIANCE PLAN TO DIVISION OF DRINKING WATER. AND THE COMPLIANCE PLAN HAS. IT LAYS OUT OUR, OUR SCHEDULE FOR HOW WE PLAN TO COMPLY WITH THE WITH THE MANDATE. AND SO THE COMPLIANCE PLAN HAS US STARTING CONSTRUCTION IN JANUARY OF 2028. AND THAT'S BEING DRIVEN BY OUR HOPE THAT BY THE END OF 2027, WE WOULD HAVE HAD THE SECURE FINANCIAL AGREEMENT WITH WITH THE STATE, WITH THE STATE. AND IN ORDER FOR US TO BE ABLE TO FULLY SUBMIT AN APPLICATION TO THE STATE TO TO GET THE FINAL AGREEMENT, THEY REQUIRE THAT BY THAT TIME, THEY THEY WON'T FINALIZE THE AGREEMENT WITHOUT THE RATES HAVING BEEN IN PLACE, BECAUSE SOME OF THE THINGS THAT THEY'LL CONSIDER AS PART OF THE FUNDING APPROACH IS THAT WHATEVER THEY CAN'T FUND WITH GRANTS, THEY'LL ROLL INTO A LOW INTEREST LOAN. AND SO AS PART OF THAT APPLICATION, THEY ASK US FOR THREE YEARS WORTH OF AUDITED FINANCIALS TO ENSURE THAT WE HAVE THE PROPER RATE STRUCTURE, THE REVENUES TO PAY BACK THE LOAN. SO IT'S A IT'S A COMPONENT THAT NEEDS TO BE THE RATES NEED TO BE FINALIZED IN ORDER TO BE ABLE TO GET THE FINANCIAL SUPPORT, TO THEN BE ABLE TO IMPLEMENT A PROJECT SO THAT OUR PLAN IS THAT IN ORDER TO KIND OF MEET THAT SCHEDULE, WE CAN'T AFFORD TO NOT SET RATES ANY LATER THAN JULY 1ST OF 2027. SO WE COULD WE COULD CERTAINLY TRY TO DO IT SOONER, BUT WE CAN'T DO IT LATER THAN THAT. OTHERWISE, IT STARTS PUSHING OUT EVERYTHING, THESE OTHER SCHEDULES, RIGHT? SO PART OF WHAT WE WANTED TO GET FROM YOU TODAY IS UNDERSTANDING THE SENSITIVITY OF THIS IS WHETHER YOU WOULD PREFER FOR US TO START THE OUTREACH LATE SOMETIME IN, SAY, THE FOURTH QUARTER OF THIS YEAR OR, OR WHETHER YOU WOULD PREFER THAT WE START THE OUTREACH THE FIRST QUARTER OF NEXT YEAR. IF WE START THE NEXT QUARTER OF NEXT YEAR, OR EVEN IF WE START THE FOURTH QUARTER OF THIS YEAR, WE WOULD TRY TO PUT OUT THE PROP 218 NOTICE SOMETIME IN MAYBE LIKE MARCH OF 2027, YOU KNOW, THAT HAS A 45 NOTICING PERIOD TO TRY TO HAVE THE PUBLIC HEARING MAYBE NO LATER THAN MAY SO THAT THEN WE'RE READY TO IMPLEMENT THE NEW RATES ON JULY 1ST OF 2027. YEAH, I. SO I THINK WE OUGHT TO START LIKE YESTERDAY IN TERMS OF FRAMING AND TALKING ABOUT THIS, BUT WE SHOULDN'T DO IT ALONE, YOU KNOW, BECAUSE INDIO HAS TO DO THIS. CVS HAS TO DO THIS BECAUSE WE'RE ALL IMPACTED BY THE BY THIS CHROME, CHROME SIX MANDATE. AND AND SOMEHOW THERE HAS TO BE AN EFFORT AS A REGION TO JUST START PLANTING THE SEED THAT, THAT, THAT WHAT WE'RE, WHAT WE'RE FACING IS GOING TO HAVE A FINANCIAL IMPACT. AND, AND IT'S IMPORTANT BECAUSE RIGHT NOW, IF YOU LOOK AT, YOU KNOW, JUST COST OF LIVING GOING UP, IF YOU LOOK AT ENERGY RATES GOING UP, IF YOU LOOK AT POTENTIAL $200 A BARREL OF OIL GASES GOING UP. SO WE'RE, YOU KNOW, LOOKING AT KIND OF LIKE THE POLITICAL CONTEXT OR JUST THE, JUST THE KIND OF COMMUNITY CONTEXT IN THE SENSE IT'S IMPORTANT THAT

[01:10:05]

THAT'S REAL. AND KEEP IN MIND, YOU'VE GOT PEOPLE ON FIXED INCOMES AND, AND SO HOW WE DO THIS IS GOING TO BE VERY, VERY IMPORTANT. AND MY ONLY, MY ONLY THING IS, IS THAT FROM A CONTINUITY STANDPOINT, RIGHT, YOU MAY BE DEALING WITH A DIFFERENT COUNCIL AND YOU THINK, YOU KNOW, THE ELECTIONS COMING UP, I DON'T KNOW, NOVEMBER, I DON'T KNOW, MAYBE SIX SOMEWHAT IN THE WEEK OF THE 1ST NOVEMBER. I DON'T KNOW THE DATE, BUT YOU GOT A NEW COUNCIL NOVEMBER, SOMEWHAT OF A YOU KNOW, IT'S A IT'S A HOLIDAY MONTH. AND IN FEBRUARY OR, OR DECEMBER COMES AND IT'S A KIND OF TRANSITIONING IN, TRANSITIONING OUT HOLIDAY. AND THEN BOOM, YOU GOT A NEW COUNCIL THAT'S GOING TO HAVE TO BITE THE BULLET. VERY HARD DECISIONS RIGHT AWAY.

AND, AND, AND WHAT'S MY POINT? PEOPLE SHOULD GET EDUCATED BECAUSE BECAUSE THE IMPACT OF THIS IS SIGNIFICANT. AND THEN IT'S ALSO TO SAY, YOU KNOW, PEOPLE WHO ARE GOING TO BE HERE BECAUSE WE HAVE, YOU KNOW, THERE'S TWO COUNCIL MEMBERS RIGHT HERE TO MY LEFT. THEY'RE GOING TO BE HERE FOR THE NEXT FEW YEARS. SO LEADERSHIP IS GOING TO BE VERY IMPORTANT AND UNDERSTANDING, UNDERSTANDING THAT IF WE DON'T BITE THE BULLET OR THAT IF WE DON'T MEET THESE TIMELINES, THEN THE FISCAL REALITY OF OUR IT MIGHT BE EVEN GREATER, YOU KNOW, BECAUSE WE MAY MISS THE GRANTS AND WE'RE NOT WE'RE NOT GOING TO GET THE COMPLIANCE PLAN. SO THAT'S MY POINT. LEADERSHIP. SO, SO SORRY. GO AHEAD. I'M JUST GOING TO SAY. SO I THINK THAT'S IT'S CRUCIAL FOR US TO GET YOUR FEEDBACK ON ON THE ON THE TIMING OF THIS AND THE SCHEDULE.

I THINK FROM THE PERSPECTIVE OF HAVING DONE THE ANALYSIS AND, AND GETTING A SENSE OF WHERE, WHAT THE WORST CASE SCENARIO LOOKS LIKE, I THINK, I THINK WE'VE COMPLETED THAT. WE'RE READY TO, TO KIND OF, YOU KNOW, START MOVING ON THIS. I THINK IT'S MORE SO ABOUT THE SCHEDULE OF WHEN YOU WOULD LIKE FOR THESE RATES TO BE IMPLEMENTED. AND THAT'S EITHER GOING TO BE JULY 1ST OF 2027 OR SOMETIME BEFORE THAT. AND SO THAT'S WHAT WE WOULD LIKE TO TRY TO GET SOME DIRECTION ON. IF I CAN JUST SHARE SOME, SOME COMMENTS, IS THAT THERE'S, THERE'S A PLAN THAT WE HAVE TO BE THAT HAS TO BE PUT IN PLACE AND IT HAS TO BE APPROVED. SO I DON'T THINK THAT, YOU KNOW, THAT COUNCIL MEMBERS WHO, WHO ARE SITTING ON CITY COUNCIL FOR THE NEXT FEW YEARS, YOU KNOW, I DON'T THINK THAT IT REALLY HAS THE THE DISCRETION TO BE ABLE TO DEVIATE SO MUCH FROM FROM THIS PLAN. YOU KNOW, I MEAN, WE START DEVIATING AND THEN PUTTING THESE RATES OFF. THEN WE'RE NOW OUT OF COMPLIANCE. AND THEN, YOU KNOW, I DON'T KNOW WHAT, I DON'T KNOW WHAT THE, THE, IF THERE'S FEES FOR, FOR VIOLATING, YOU KNOW, THE PLAN, YOU KNOW, I DON'T WANT TO GO DOWN THAT ROUTE. AND I'M, I'M POSITIVE THAT MOST PEOPLE.

WELL, I CAN'T SPEAK FOR EVERYBODY WHO'S GOING TO BE UP HERE, BUT I CAN'T SEE MEMBERS OF COUNCIL WANTING TO DEVIATE FROM A PLAN THAT'S BEEN APPROVED BY THE STATE AND THAT WE WERE OBLIGATED TO TO FOLLOW. THE MAYOR BROUGHT UP SOME GREAT POINTS ABOUT VARIABLES THAT, YOU KNOW, THAT ARE HOPEFULLY SHIFT, YOU KNOW, FROM HERE TO 20, 31, YOU KNOW, AND HE BROUGHT UP SOME GOOD POINTS, YOU KNOW, ABOUT THE ASSET REPLACEMENT DEPRECIATION. YOU KNOW, YOU KNOW, IF IT'S JUST A SMALL AMOUNT THAT, THAT, YOU KNOW, IS, IS AMOUNTING TO IS, YOU KNOW, HOW FAR CAN WE PUSH OUT, YOU KNOW, AS A REPLACEMENT TO THAT'S GOING TO COST MORE DOWN THE ROAD, RIGHT? AND THEN SO THE 49 AND I KNOW THAT YOU GUYS GAVE US NUMBERS AS WORST CASE. SO FOR CAPITAL FOR THE 49.1 IS THAT IS THAT PRETTY SOLID. I MEAN IS THAT I THINK IT'S PRETTY SOLID. THAT'S THAT CAME OUT OF WHAT WE CALL A PRELIMINARY ENGINEERING REPORT THAT STARTS TO AT LEAST TRY TO GET YOU TO A 30% HIGH VIEW. SCOPE THAT THE CONSTRUCTION,

[01:15:10]

[01:20:05]

SO, SO WHAT YOU WANT, I MEAN, WHAT YOU'RE SEEKING FROM US IS DIRECTION ON, ON THE, THE TIMELINE AND THEN THE, THE ENGAGEMENT PORTION OF IT. YEAH. I THINK MORE SO THE, WHEN YOU WOULD WANT TO HAVE RATES EFFECTIVE, THE, THE, THE, THE RATE INCREASE. AND SO RIGHT NOW WE ARE ANTICIPATING JULY 1ST OF 2027. WE'VE LAID OUT A SCHEDULE TO DO THAT. IF YOU HAVE DIFFERENT THOUGHTS THAT DON'T ALIGN WITH THAT, THEN WE WOULD LIKE TO KNOW WHAT THOSE ARE SO WE CAN SHIFT OUR APPROACH. AND SO BASED ON ON YOUR EXPERTISE AND YOU KNOW, YOUR KNOWLEDGE IS, YOU KNOW, TO, TO THE MAYOR'S POINT IS THAT IF WE START THE COMMUNITY OUTREACH, HAVE YOU THOUGHT OF MAYBE, YOU KNOW, SOME APPROACHES OR SOME OTHER LANGUAGE THAT WE WOULD BE USING WHEN IT COMES TO THOSE RESIDENTS? BECAUSE KEEP IN MIND THAT THIS IS WORST CASE SCENARIO. AND SO TO THEN COMMUNICATE WITH THEM, YOU KNOW, THAT THIS MIGHT SHIFT A BIT. I, YOU KNOW, I, I WANT TO BE IN ENSURING THAT WE'RE AS HONEST AS POSSIBLE. AND SO PERHAPS, YOU KNOW, AND AGAIN, THROUGH YOUR EXPERIENCE AND KNOWLEDGE IS, YOU KNOW, MAYBE HAVE YOU THOUGHT OF SOME TYPE OF LANGUAGE THAT CAN BE USED WHEN DOING THE COMMUNITY ENGAGEMENT? WE I THINK THERE HAS BEEN SOME THINKING ABOUT TRYING TO APPROACH THIS AS A REGION. WE, WE HAVE GROUPS WITH OUR PARTNERING WATER AGENCIES. WE HAVE WHAT'S CALLED THE COACHELLA VALLEY REGIONAL WATER MANAGEMENT GROUP. WE HAVE CV WATER COUNTS. THESE ARE. IT'S A COLLABORATIVE GROUP BETWEEN ALL THE WATER AGENCIES. AND THERE HAS BEEN TALK ABOUT, HEY, LET'S JUST KIND OF PARTNER UP IN THIS MESSAGING. I THINK I'M GOING TO START WORKING ON THAT. BUT IN THE, IN THE CASE THAT EVERYBODY STARTS KIND OF DOING THEIR OWN THING ON THEIR OWN, THAT'S, THAT'S WHERE WE HAVE TO ALSO SAY, OKAY, WELL, IF WE'RE NOT MAKING ANY HEADWAY WITH THE GROUP, THEN BY THIS DATE, YOU SHOULD START DOING YOUR OWN. AND SO I'M GOING TO START WORKING ON TRYING TO SEE WHERE THEY'RE AT. WE'RE NOT ALL ON THE SAME SCHEDULES. AND SO IT'S IMPORTANT TO, TO, TO GET A SENSE OF THAT. BUT, BUT WHAT ARE YOUR FEELINGS ON JULY 1ST OF 2027? I MEAN, I THINK BASED ON THE, WHAT, ON THE INFORMATION THAT, THAT YOU GUYS ARE PROVIDING US, YOU'RE SAYING THAT, HEY, WE GOT TO MOVE AROUND THIS TIME. YOU KNOW, I MEAN, I, I'M CERTAIN THAT BOTH OF YOU, WITH YOUR EXPERIENCE THAT YOU'RE BRINGING IT FORWARD WITH MAY BE THE BEST TIME TO BE MOVING FORWARD RESPONSIBLY. I MEAN, WE CAN ALSO COME BACK WITH OTHER WE CAN COME BACK AND GET DEEPER INTO YOUR STUFF. AND I WANT TO KNOW, I MEAN, WHAT ARE YOUR FEELINGS ABOUT JULY 1ST? WHAT OPTIONS DO WE HAVE? AND I THINK THAT'S THAT'S WHAT I'M CURIOUS ABOUT IS WE HAVE OUR COMPLIANCE PLAN. HOW MUCH CAN JULY 1ST SHIFT? CAN IT GO AUGUST? CAN IT GO JUNE? CAN IT GO MARCH? AND IF IT DOES, THEN DOES THOSE TIMETABLE OR DOES THAT TIMELINE SHIFT TO US THEN INSTEAD OF JANUARY, DOES THAT SHIFT TO NOVEMBER? DOES THAT SHIFT TO DECEMBER? DOES THAT SHIFT TO AUGUST? WHAT IS THE WHAT IS THE PERIOD IN WHICH YOU NEED TO SHOW THE STATE THAT WE HAVE THE NECESSARY RESOURCES TO FUND DEBT OBLIGATION, AND THEREBY MEETING THE 1% LOAN OR WHATEVER, AND THEIR COMPLIANCE PLAN, LIKE WHAT'S, WHAT, WHAT IS THAT FLEXIBILITY AND SCHEDULE? LIKE, NOT, NOT MUCH, NOT NOT MUCH THE LATEST. THAT'S THE LATEST BECAUSE OH, YES, JULY 1ST FOR OUR BECAUSE HE'S GOING TO HAVE NUMBERS TO BE ABLE TO EITHER GET DEBT OR TO APPLY FOR GRANTS AND HAVE THE PLAN COMPLETE. YOU CAN GO THE OTHER SIDE OF THE ELECTION, BUT THEN YOU'VE GOT THE ELECTION. SO SO THIS IS THE LATEST SENSITIVE TO MANY THINGS WHEN WE PUT THIS SCHEDULE TOGETHER. YEAH, THIS KEEPS US IN COMPLIANCE TO BE ABLE TO MEET OUR OBLIGATIONS FOR APPLICATIONS. BUT THIS IS THE LAST PERIOD. THAT'S THE YOU HAVE TO STICK TO THIS. YOU CAN'T GO FURTHER OUT. WELL, I LIKE THAT SCHEDULE. THIS IS THE LAST THE END OF IT. YEAH. I THINK THIS IS A LOT OF THOUGHT.

YEAH. WE WENT WE PUT A LOT OF THOUGHT INTO THIS. AND IT'S LIKE THE WORST. THE MORE THAT WE CAN PUT. OTHERWISE WE START PUSHING OUT OUR ABILITY TO SECURE FUNDS AND IT PUSHES OUT OUR ABILITY TO START. I THINK THAT'S THE THREAT HERE. RIGHT. AND THAT'S MY A LITTLE BIT OF MY CONCERN. JANUARY, THAT YEAH, YOU KNOW, BUT YOU KNOW, THE CONCERN IS, IS THAT JANUARY

[01:25:08]

YEAH, I UNDERSTAND THAT. BUT I THINK THAT'S WHAT YOU'RE DOING IS, IS PUSHING IT FOR THIS AS, AS WHEN YOU WERE TALKING ABOUT MESSAGING TOO, WE GAVE YOU THE WORST CASE SCENARIO. SO THEN WE CAN DIAL BACK IF WE GET THIS MUCH IN GRANTS, THIS IS WHAT YOUR RATE'S GOING TO BE. IF WE GET THIS MUCH IN GRANTS, THIS IS WHAT YOUR RATE'S GOING TO BE. BUT AS WORSE AS IT'S GOING TO GET THE WORST CASE SCENARIO, THAT'S WHAT YOU'RE SEEING RIGHT NOW. IT CAN ONLY GET BETTER.

THIS IS, YOU KNOW, THIS IS IT. I THINK IN TERMS OF JUST LESSENING BURDEN, RIGHT? AND, AND AS WE WERE GOING THROUGH THESE, IT'S GOING TO BE IMPORTANT THAT WE DEVELOP STRATEGIES ON HOW TO SECURE GRANT GRANTS, ON STRATEGIES, ON HOW TO, YOU KNOW, MAKE SURE THAT RESIDENTS CAN DO TURF CONVERSIONS AND THEREBY LOWER THEIR RATES, WHATEVER IT IS, RIGHT? WHATEVER WE CAN DO. AND THINKING THROUGH DEPRECIATION AND THINKING THROUGH LIKE HOW MUCH WE CAN INCREASE, ETC. LIKE THAT, THAT FORMULA, THAT MANAGEMENT IS GOING TO BE VERY IMPORTANT. IT'S GOING TO BE A BIG OBLIGATION ON YOU. AND THEN I'M JUST WONDERING LIKE, WHO'S GOING TO BE ASSISTING YOU IN, IN THIS FORMULA PER SE THAT WE CAN CONTROL AT WORST CASE SCENARIO AND WHO'S GOING TO BE ASSISTING YOU? WELL, IN TERMS OF SAYING, HEY, LIKE, WHO'S GOING TO DETERMINE 6% VERSUS 4%? AND HOW ARE WE GOING TO LIKE, I THINK THAT'S GOING TO BE, YEAH, IT WOULD ACTUALLY BE PART OF THE BUDGET PROCESS. YOU WOULD ADOPT A RATE WHEN YOU ADOPT YOUR BUDGET. ALSO, BECAUSE YOU'RE SETTING CAPITAL O AND M AND ADMINISTRATION ALL AT THAT SAME TIME. SO YOU'LL KNOW WHAT YOU NEED BASED UPON WHAT'S COMING AT YOU. YEAH. PART PART OF THE DELIVERABLE FROM EUGENE IS THAT THEY'RE GOING TO BE HANDING OVER THE ENTIRE FINANCIAL MODEL. SO WE WILL HAVE THE FINANCIAL MODEL THAT THEN WE CAN JUST UPKEEP WITH YOU FINANCIAL DATA AS WE GET AUDITED YEARS. AND SO, SO THE FINANCE DEPARTMENT IS GOING TO HAVE THE FULL MODEL TO BE ABLE TO START SHIFTING THE NEEDED RATE INCREASES BASED ON, ON THE REVENUES THAT WE'RE RECEIVING, IN THIS CASE, OFFSETTING THE NEED FOR, FOR, FOR, FOR REVENUES THROUGH THE RATE BECAUSE WE RECEIVED GRANTS OR, OR LOW INTEREST LOANS. SO I THINK SOMETHING THAT THAT ERIC COULD WORK ON IS, IS MAYBE CREATING SCENARIOS WHERE, WHERE LOOK AT WHAT IT LOOKS LIKE. IF WE GET 5 MILLION, LOOK, LOOK AT WHAT IT LOOKS LIKE IF WE GET TEN, 15, 20, 25, WHATEVER. AND THEN MAYBE, YOU KNOW, ONE OF THE THINGS THAT I'VE BEEN SAYING IS I THINK IT'S VERY LIKELY THAT WE CAN PUT 25 GRANT AND THEN ROLL IN THE OTHER 25 AS A LOW INTEREST LOAN. AND THEN SO MAYBE YOU MODEL THAT TOO, AND WE CAN SHOW YOU HOW THAT LOOKS LIKE. YEAH. BUT IT, IT PUTS THE PRESSURE ON ALL OF US TO GO GET THAT 25 IT DOES.

YEAH. WHICH IS WHICH IS FINE. I MEAN, IT'S JUST, IT SHOWS WHERE WE'RE HEADED, RIGHT. AND WE'LL TRY TO KNOCK THAT DOWN. WOULD YOU LIKE US TO COME BACK IN IN A MONTH OR SO OR SO. SO SINCE THIS IS OBVIOUSLY THE LATEST THAT WE CAN PUSH IT OUT TO, IS THAT THEN WOULD YOU BE COMING? I MEAN, HOW FAST CAN YOU COME BACK AND TALKING ABOUT OR PUTTING TOGETHER SOME LANGUAGE SO THAT WE CAN START THE COMMUNITY ENGAGEMENT PORTION AND THEN PUTTING A TIMELINE ON THAT? OBVIOUSLY, THERE WOULD HAVE TO BE A SERIES, I THINK, OF, OF ENGAGEMENT. SO AND THEN TOO, IS THAT WHEN YOU'RE SAYING THAT, YOU KNOW, YOU'RE GOING TO HAVE ERIC DO THE FIVE, TEN, 15, 20 AND THOSE CALCULATIONS IS HOW MUCH DO WE WANT TO THEN SHARE IN THE COMMUNITY ENGAGEMENT? I DON'T WANT, YOU KNOW WHAT I MEAN, THEM THINKING, HEY, WE MIGHT GET UP TO THIS TO THIS AMOUNT AND THEN AND THEN FAIL, YOU KNOW, IN THAT AS WELL. AND SO I MEAN. OH, IS THIS THE.

YEAH. SO, SO WE THINK THAT WE HAVE ENOUGH TIME TO DO PUBLIC OUTREACH, TAKING INTO ACCOUNT JULY 1ST 2027 AS KIND OF THE WORST, THE FURTHEST THAT WE CAN PUSH IT OUT. WE CAN EITHER DO START OUTREACH AT THE END OF THIS YEAR, AT THE BEGINNING OF NEXT YEAR, OR WE COULD START SOONER, SOONER IT IT. AND THEN I THINK WE JUST NEED TO ALSO HEAR FROM YOU WHAT IS THE RIGHT

[01:30:05]

AND THEN START THINKING ABOUT WHAT IS AN OUTREACH PLAN AND REALLY START THINKING ABOUT LIKE, AND BRING THAT BACK TO THE COUNCIL IN TERMS OF LIKE, WHAT DOES IT LOOK LIKE? IS IT GOING TO BE MAIL OR IS IT GOING TO BE COMMUNITY MEETINGS? IS IT GOING TO BE, YOU KNOW, WORKING WITH DIFFERENT NONPROFITS? LIKE, IS IT COMMERCIAL? IS WHATEVER IT IS, RIGHT? LIKE WE HAVE TO THINK THROUGH THAT. I JUST WANT TO NOTE FOR THE RECORD, THAT COUNCIL MEMBER CAN ARRIVE TO THE MEETING AT 727, SO I JUST NEED TO MAKE THAT OFFICIAL. THANK YOU. BUT YEAH, THOSE ARE THOSE ARE THOSE ARE THINGS THAT I THINK ARE GOING TO BE VERY IMPORTANT. AND THEN, AND IF WE CAN, IF WE CAN WORK WITH PARTNERS, RIGHT. THE OTHER AGENCIES, I THINK THAT'S GREAT.

BUT I GET YOUR POINT THAT, YOU KNOW, EVERYBODY'S RATE IS GOING TO BE DIFFERENT BECAUSE OF THEIR OPERATING COSTS AND PLUS THEIR CAPITAL COSTS. SO THAT THAT'S, THAT'S THERE. BUT, BUT I GUESS MY POINT ABOUT ALL THIS IS THAT AS MUCH AS WE CAN COORDINATE, IT'S GOING TO BE BETTER FOR US. BUT THEN THERE IS GOING TO BE A PART WHERE WE'RE GOING TO HAVE TO DO IT ALONE. AND THAT'S WHAT WE HAVE TO REALLY THINK THROUGH, YOU KNOW? SO AND THEN JUST GOING BACK TO THE STRATEGY THAT WE'VE DONE, YOU KNOW, WE'VE DONE LEGAL, WE'VE DONE LEGISLATIVE.

AND THEN AND THEN WE'VE DONE, YOU KNOW, GRANTS OR COMPLIANCE, SAME KIND OF APPROACH. WE HAVE TO THINK OF IT THAT WAY TOO. AND IN THIS CASE, WE HAVE TO DO WE HAVE TO LOOK AT AT AT AT GRANTS. WE GOT TO LOOK AT OEM, WE GOT TO LOOK AT REGIONAL PARTNERS AND HOW WE'RE GOING TO APPROACH THIS. SO ALL RIGHT, ALL RIGHT. ANY OTHER QUESTIONS? COUNCILMEMBER. THANK YOU. SO MY THING IS YOU GUYS ARE SUGGESTING SOONER THE BETTER. AND I AGREE WITH IT BECAUSE THEN WE HAVE ROOM FOR CORRECTIONS TO CHANGE TO ADD IF NEED BE. NOBODY WANTS TO HEAR ABOUT INCREASES. I DON'T WANT TO HEAR ABOUT INCREASES. EVERYTHING IS INCREASING. BUT I AGREE WITH YOU GUYS THAT THE SOONER WE CAN MOVE FORWARD WITH THIS, IT LEAVES ROOM FOR CORRECTIONS. SO THAT'S THAT'S MY POINT OF VIEW. OKAY. WHEN DO YOU THINK IT MIGHT BE A GOOD TIME TO COME BACK WITH AN UPDATE AND LIKE 30 DAYS LESS? THEN HOW LONG DO YOU NEED? YEAH, 30 DAYS IS FINE. NEXT COUNCIL MEETING TO COUNCIL MEETING. ALL RIGHT. WELL, WE'LL PUT SOMETHING ON THE AGENDA SOON. THANK YOU, THANK YOU, THANK YOU. AND THEN WE'RE YOU'RE GOING TO SEND US ALL THIS. WE HAVE IT ALREADY RIGHT. THE THE SLIDESHOW. YOU HAVE THIS. IT'S IT'S IT'S THE PART OF THE ITEM. AND THEN BECAUSE IT'S IT'S MEETING, I MEAN, THERE'S A LOT OF NUMBERS THERE. YEAH. AND I'LL SHARE THE ON THE SPREADSHEET. YEAH. OKAY. THANK YOU, THANK YOU, THANK YOU. ALL RIGHT. NEXT PRESENTATION IS ON THE FISCAL YEAR 2526 MID-YEAR BUDGET REVIEW. LINCOLN, WELCOME TWO. THANK YOU. WHO WOULD HAVE THOUGHT THAT THE RATE STUDY WOULD HAVE MORE NUMBERS THAN THE BUDGET PRESENTATION? WELL, WE HAVEN'T SEEN YOUR NUMBERS YET. DID THEY TAKE THE CLICKER? YOU BETTER CATCH THEM BEFORE I GOT IT. ALL RIGHT. SO TODAY WE'LL BE GOING OVER THE MID-YEAR BUDGET UPDATE. BASICALLY OUR MID-YEAR BUDGET WE'RE SHOWING THE GENERAL FUND WITH AN OPERATING NET LOSS OF ABOUT $191,000. WE HAD PROJECTED A NET INCOME OF 72,000. THERE WERE SOME ADJUSTMENTS THROUGHOUT THE YEAR FOR GENERAL FUND EXPENDITURES TOTALING AROUND 100,000. AND THERE'S ANOTHER APPROXIMATELY 90 IN THERE. OUR WATER FUND IN THE RATE STUDY, THEY WERE EXPECTING A -1.6 MILLION IN OPERATIONS. WE'RE ACTUALLY WATER SALES ARE HIGHER THAN WHAT WE BUDGETED. SO WE'RE ACTUALLY GOING TO COME IN AROUND 1.45 MILLION NEGATIVE. AND CONNECTION FEES ARE SLIGHTLY POSITIVE. THE FIRE PROTECTION DISTRICT IS BREAK EVEN. I DID HAVE TO DO AN ADJUSTMENT TO GET IT TO BREAK EVEN. AND THE SEWER CONNECTION FEES AGAIN, THAT WAS MENTIONED IN THE RATE STUDY TO BE NEGATIVE. SO WE'RE AT ABOUT -1.4 MILLION. THE SANITARY

[01:35:01]

BASICALLY OUR NET INCOME LOSS CHANGED BY 270,000 IN THE GENERAL FUND, 600,000 NEGATIVE IN WATER CONNECTION FEES. THE WATER UTILITY WENT UP BY ABOUT 5.4 MILLION. THAT WAS DUE TO DELAYING CAPITAL EXPENDITURES. PRIMARILY, WE PUSHED PROJECTS TO A FUTURE YEAR. THE SEWER CONNECTION FEES WENT DOWN. AND THE THE THE LOSS FOR THE SANITARY DISTRICT REDUCED BY 630,000. AND AGAIN, THAT'S DUE TO THE FACT THAT THE SANITARY FEES ARE COMING IN HIGHER THAN EXPECTED FOR OPERATIONS. SO IN THE GENERAL FUND, I KNOW THAT WE'VE TALKED A COUPLE OF TIMES ABOUT THE TRANSIENT OCCUPANCY TAX. WE'RE ON TRACK TO HAVE AN INCREASE OF $1 MILLION OVER LAST YEAR. AND THE YEAR BEFORE THAT, WE INCREASED $1 MILLION AS WELL. SO I BELIEVE THAT AFTER THIS YEAR, THE INCREASES WILL BE LESS DRAMATIC. PART OF THE REASON IS THE CHANGE FROM 9% TO 13% FOR THE TRANSIENT OCCUPANCY RATE. AND PART OF IT IS THAT WE NOW HAVE A CONTRACT WITH VRBO TO LIMIT THE PAYMENTS DIRECTLY TO US. SO THAT THAT HELPS WITH THAT REVENUE RECOGNITION. WE HAD A ONE TIME, CARLOS, EMERGENCY REIMBURSEMENT OF ABOUT 900,000. WE SHOULD HAVE ONE MORE ONE TIME REIMBURSEMENT FROM THEM. BUT I DID NOT INCLUDE THAT IN THE BUDGET BECAUSE WE DON'T KNOW IF WE'LL RECEIVE IT THIS YEAR OR NEXT YEAR. HOW MUCH IS THAT ONE? I'M NOT SURE. I'VE BEEN WORKING WITH CELINA TO TRY AND FIGURE OUT HOW MUCH THAT NEXT REMITTANCE MIGHT BE. THANK YOU. WE HAD A T INCREASE OF ALMOST 400,000, JUST BASED ON WHAT'S COME IN THROUGH THE YEAR SO FAR AND WHAT'S LEFT OF THE YEAR TO GO SHORT TERM RENTAL PERMITS.

THEY WERE NEW IN MARCH OF LAST YEAR, HAD NOT BEEN ISSUED PREVIOUSLY. SO WE'RE LOOKING AT AN INCREASE OF ABOUT 340,000 THERE. I DID GO WITH. A CONSERVATIVE ESTIMATE ON THAT, SINCE IT IS THE FIRST YEAR AND WE HAVE SOME CANNABIS TAX, ONE TIME RECEIPTS OF 275,000 FOR PRIOR YEAR REMITTANCES THAT WERE CALCULATED INCORRECTLY. SO WE'RE TRYING TO COLLECT THAT THIS FISCAL YEAR. STREET SWEEPING CITATIONS HAVE BEEN ABOVE AVERAGE, AND WE'RE EXPECTING THAT TO INCREASE BY 145,000 THIS YEAR. PARKING CITATIONS ALSO 125,000. THEN WE HAVE SOME OF THE MORE THE THE SALES TAX DECREASE 950,000. THAT IS BASICALLY WHAT WE SET ASIDE IN THE EVENT THAT WE LOSE THE SALES TAX DISPUTE FOR ONE OF OUR BUSINESSES IN THE CITY, THEY DO A THREE YEAR LOOK BACK. IF WE LOSE AND IT'S GOING TO COST US APPROXIMATELY 950,000 IF WE LOSE THAT. SO WE TOOK THAT OUT. CONSTRUCTION TAX DECREASE DUE TO SLOWED CONSTRUCTION STARTS OF 575,000. WE IT'S NOT A REAL NUMBER, BUT AN UNREALIZED GAIN ON INVESTMENTS. WE DECREASE THAT BY $445,000. BUT IT'S A FAIR MARKET VALUE ADJUSTMENT.

PROPERTY TAX. WE HAD A DECREASE OF ABOUT 325,000 OVERALL AND FRANCHISE TAX DECREASE OF ABOUT 240,000. SO THEN MOVING ON TO THE EXPENDITURE SIDE, WE HAD POLICE SERVICES CONTRACT AN INCREASE OF ABOUT 1.16 MILLION. I WILL MENTION THAT ABOUT 500, ALMOST 500,000 OF THAT IS DUE TO OVERTIME. THAT IS ABOVE WHAT WAS EXPECTED. IT MAY BENEFIT THE CITY TO LOOK AT ADDING AN OFFICER OR TWO TO REDUCE OVERTIME IN THE NEXT YEAR. OTHER THAN THAT, THE OTHER 600,000, APPROXIMATELY 650,000, IS FOR INCREASED COST OF SERVICES FOR OFFICERS AND

[01:40:08]

[01:45:04]

LINCOLN, GO BACK TO YOUR SLIDE ON JUST KIND OF THINGS THAT CAUGHT MY EYE WITH RESPECT TO THE REVENUE THAT'S COMING IN. NOT THAT THAT ONE RIGHT THERE. SO. JUST CONNECTING THE DOTS. I KNOW THAT ON THE TRANSIT OCCUPANCY TAX AND THE STRS, THE CITY RECENTLY PUT OUT, SENT OUT NOTICES TO OUR RESIDENTS, YOU KNOW, WHO MAYBE HADN'T SIGNED UP OR WHATNOT, RIGHT? THAT, YOU KNOW, THEY HADN'T EITHER REMITTENT THEIR TOT OR THEY HADN'T EVEN GOTTEN ANY. SO THAT WAS FOR THE PERMIT PROCESS, WHICH IS NEW. AND SO WHAT WE DID IS WE USE A COMPANY CALLED DECKARD TO TRACK ALL OF THE AIRBNB PROPERTIES IN THE CITY. IN THAT WEBSITE, IT HAS THE ACTIVE LISTINGS, THE INACTIVE LISTINGS. SO BASICALLY, IF THEY'VE BEEN ON THERE SOMETIME SINCE WE STARTED WITH DECKARD, WE'LL HAVE A HISTORY OF IT. AND SO WE SENT TO ALL OF THOSE ADDRESSES A NOTICE THAT IF YOU'RE RENTING, YOU KNOW, THROUGH THE SHORT TERM RENTAL PROCESS, YOU DO NEED TO GET A PERMIT. SO YOUR NUMBERS THAT YOU'RE SEEING RIGHT THERE, THEY'RE BASED OFF OF KIND OF ASSUMPTIONS THAT, YES, IF WE'RE GOING TO SIGN UP AND THEN, SO I GUESS, HOW ARE WE TRACKING HOW MANY PEOPLE HAVE ACTUALLY COME AND PULLED PERMITS? WE HAVE.

THESE NUMBERS ARE A LITTLE OLD, BUT WHEN I RAN IT, THERE WAS. THREE, TWO, TWO. THERE WAS ABOUT 20,000 RECEIVED ALREADY. I ASSUMED ABOUT 40,000 IN SEASONAL PERMITS AND 300,000 IN ANNUAL. WHEN I DID THE CALCULATION, IF ALL OF OUR ACTIVE PROPERTIES WERE TO SIGN UP, IT WOULD HAVE BEEN ABOUT 480, SO I WENT CONSERVATIVELY FROM THERE, ASSUMING THAT WE WOULDN'T GET ALL OF THEM TO SIGN UP IN THE SAME YEAR. SO WHAT'S LIKE, LIKE WHAT'S ACCURATE OR LIKE WHAT'S ACTIVE, I GUESS IS THE QUESTION ACTIVE ARE THE ONES THAT HAVE BEEN REMITTING THE TRANSIENT OCCUPANCY CURRENTLY REMITTING. YEAH. OKAY. BECAUSE PEOPLE GOT LETTERS THAT MAYBE SIGNED UP IN 2016 BUT DON'T HAVE A PROPERTY GOING. THEY'RE NOT ACTIVE. YEAH.

I DIDN'T ASSUME ANY OF THOSE. OKAY, COOL. THAT'S THAT'S GOOD. AND THEN. SHORT TERM CANNABIS, ONE TIME RECEIPTS. I GUESS YOU'RE PROJECTING AN INCREASE. I THOUGHT BILL, WE HAD LOOKED AT LIKE CANNABIS TAX RECEIPTS DOWN OR BECAUSE WE'RE SEEING, YOU KNOW, THIS IS A CORRECTION BECAUSE ONE OF OUR LARGER CANNABIS OPERATORS HAD BEEN REMITTING 2% INSTEAD OF 3%. BUT OUR CANNABIS, A LOT OF OUR CANNABIS OPERATORS ARE TROUBLED AT THIS POINT. CASH FLOWS. THIS IS THE 1% DIFFERENCE THAT HADN'T BEEN COLLECTED OVER A PERIOD OF, I THINK, 4 OR 5 YEARS, THREE, THREE, THREE, THREE. I WE TALKED ABOUT MY CONSERVATIVE NATURE. SO THE ASSUMPTION THAT THEY'RE GOING TO PAY OR REMIT. RIGHT. BUT I, I WOULD NOT BET ON THAT. SO. SO THEN THAT COULD AFFECT THE NUMBERS. YES. YEAH. SO JUST IN TERMS OF MID-YEAR, BECAUSE RIGHT NOW I THINK YOU'RE LOOKING AT WHAT 300 DOWN THE ORIGINAL GENERAL FUND, THE ORIGINAL BUDGET WAS 250. AND WE'VE ALREADY COLLECTED AS OF LIKE A FEW WEEKS AGO, 212. SO WE'RE GOING TO COME IN OVER BUDGET ANYWAY. YOU THINK? YEAH. AND THEN IF WE ARE ABLE TO COLLECT THAT PAST DUE, WHICH WE WE DIDN'T BUDGET THE FULL AMOUNT THAT WAS PAST DUE, WE ONLY BUDGETED A PIECE OF IT. OKAY, COOL. AND THEN I NOTICED AS WELL. OIS, EMERGENCY REIMBURSEMENT INCREASE. YEAH, THAT'S ALREADY BEEN RECEIVED. OKAY. AND THAT, THAT WAS AS A

[01:50:01]

I'M JUST TRYING TO JUST KIND OF THINK ABOUT IF WE'RE. I MEAN, IT SOUNDS LIKE YOU'RE ALREADY PROJECTING A DEFICIT COME NEXT YEAR, A MILLION PLUS. AND THEN IF WE'RE THINKING ABOUT THIS YEAR, I THINK WE'RE MID-YEAR BUDGET. WE'RE LIKE AT 300 DOWN, RIGHT? MID-YEAR BUDGET. YEAH.

WE WERE AT. THERE THREE 6366. SO WE'RE 366 DOWN. SO I NEED SOME WEIGHT. THAT WAS THE I WENT THE WRONG WAY. 263 263 YEAH. AND THEN YOU GOT A MILLION COMING. ON THE INCREASE OF PUBLIC SAFETY. SO AT LEAST COMING IN NEXT YEAR. AND THEN YOU SAID THAT YOU HAVE THE OVERTIME, YOU'RE PROBABLY WE'RE PROBABLY LIKE AT LEAST AT 1.8 COMING INTO NEXT YEAR MAYBE DEFICIT. YEAH. I MY UNDERSTANDING IS THAT FIRE IS NOT GOING TO INCREASE NEXT YEAR.

SO THAT'S GOOD NEWS. BUT YOU'RE RIGHT, CHIEF. THE. THE WE THE LAST FIVE YEAR PROJECTION I DID SHOWED THAT WE WERE GOING TO BE ABOUT 750 NEGATIVE. IF SHERIFF CONTRACT INCREASES BY A MILLION ABOVE WHAT I WAS EXPECTING THEN YEAH. WE'RE LOOKING AT TRYING TO CLOSE A GAP OF AROUND ONE AND A HALF. AND THEN LAST YEAR WE CANCELED SEVERAL CAPITAL IMPROVEMENT PROJECTS. I MEAN, WE HAD 20 MILLION IN RESERVES AND WE KIND OF BROUGHT THAT DOWN TO WE WERE GOING TO SPEND SOME OF THAT LIQUIDITY, BUT THEN WE DID. WE PUT SOME MONEY UP ON 52, 2 MILLION, RIGHT. AND THEN AND THEN WE FOUND MONEY BECAUSE IT WENT DISAPPEARED. NO, IT GOT ALLOCATED, GOT ALLOCATED TO PROJECTS, BUT WE STOPPED THOSE PROJECTS. AND THEN SO NOW WHAT'S OUR, WHAT'S OUR, OUR, OUR RESERVE NOW GOING INTO NEXT YEAR UNASSIGNED OR, OR. YEAH, I, I BELIEVE THAT IT WAS 16 MILLION IN THE FINANCIAL STATEMENTS. OKAY. SO THEN WE CAN, WE CAN STILL, I MEAN, I MEAN, NEXT YEAR, ASSUMING THAT NO NEW INCREASES IN PROPERTY TAXES AND ASSUMING THAT WE'RE NOT GOING TO SEE ANY T.O.T, ETC. WE'RE GOING TO HAVE TO KIND OF FIGURE OUT HOW TO CLOSE THE 1.5. YEAH, REALLY, I THINK 2028 WE START GETTING MORE PROPERTY TAX BECAUSE ONE OF OUR SUCCESSOR AGENCY BONDS PAID OFF. REALLY? WHICH ONE THEN 2032. IT'S A SMALLER ONE, BUT WE'LL GET SOME MORE PROPERTY TAX. 2032 I THINK WE HAVE A COUPLE MORE. AND THEN 2034 ALL OF IT IS. YEAH. THAT'S COOL. BUT WE'RE STILL PAYING OUR PASS THROUGH THROUGH 2034 BECAUSE IT'S THE LENGTH OF THE REDEVELOPMENT AREA AND WE MERGED OUR PROJECT AREAS. SURE.

THEY'RE ALL 20, 34. YEAH. SO WE'RE STILL GOING TO BE SHARING PASS THROUGH. YEAH. BILL OR LINCOLN. AND THEN FOR, FOR WHAT WE COLLECT IN CANNABIS TAX, I MEAN, DO WE THINK THAT THERE'S GOING TO BE A DECREASE IN IN THAT WE'VE SEEN ACROSS THE INDUSTRY THAT THERE'S SOME DECREASES IN THAT? SO DID YOU CALCULATE ARE YOU GUYS CALCULATING THAT AS WELL WHEN WE PUT THE BUDGET TOGETHER ORIGINALLY LAST YEAR I DROPPED THEM QUITE A BIT, BUT THEY'RE EVEN LOWER THAN WHAT WE WERE EXPECTING. YEAH. SO YOU KNOW, WE WE'RE WORKING WITH THE OPERATORS, BUT WE HAVE COMPETITION. THERE'S I, INDIA ARE OPENING UP DISPENSARIES REALLY GOT INTO US. YEAH. AND I THINK THAT THERE'S, THERE'S A COUPLE THAT ARE SHUTTING DOWN.

SO YEAH. WELL ALL RIGHT. ANY OTHER QUESTIONS. SO LINCOLN THE THE 263 IS IN A EXPLAIN TO ME YOU DID A LITTLE BIT, BUT IN THE WHAT'S THAT PAGE THE EXPENDITURE UPDATE. SO WE GOT TO THE 263 BECAUSE OF THOSE EXTRA UPDATES THAT WERE DONE. YEAH. THAT THOSE ARE INCREASES THAT OFFSET THE, THE REVENUE CHANGES. SO THERE WERE SEVERAL REVENUE CHANGES THAT IF IT WAS ONLY CHANGES IN REVENUE, OUR BUDGET WOULD INCREASE. BUT BECAUSE OUR EXPENDITURES ALSO INCREASED BY ABOUT 1.4 MILLION WERE THAT BRINGS IT DOWN. YEAH. SO THE THING TO BE CAUTIOUS OF IS SOME OF THOSE REVENUES, LIKE YOU MENTIONED, THE THE CANNABIS TAX AND THEN THE OAS

[01:55:05]

AND THEN SO THAT'S SO THEN THAT'S MY CONCERN RIGHT. THAT LOOKING AT NEXT YEAR AND WE ALREADY KNOW THAT WE GOT AN INCREASE IN OPERATING COSTS ON ON, YOU KNOW, PUBLIC SAFETY BUDGETS. AND THEN AND THEN WE'RE SEEING SOME IMPACTS, YOU KNOW, DECREASE IN PROPERTY TAXES, ETC. AND THEN WE'RE PUTTING TOGETHER OUR NEW TOT PROGRAM AND STR PROGRAM. LIKE THAT'S GOING TO BE HUGE. THAT'S WE REALLY NEED TO DO A GOOD JOB OF THAT IN GETTING PEOPLE REGISTERED AND SIGNED UP. YEAH. YOU KNOW, AND THAT WAS PART OF THAT OUTREACH THAT, THAT WE'RE DOING TO TRY AND GET EVERYONE ON BOARD TO THE NEW ORDINANCE. AND I AM CONCERNED, RIGHT, THAT, YOU KNOW, I SEE KENDRA OVER THERE. SHE'S LIKE A STAFF OF THREE. SHE'S GOT LIKE HER AND TWO CODE ENFORCEMENT OFFICERS. THAT'S NOT TRUE. THAT'S LIKE, IT'S HER AND ADRIAN AND EVERYONE ELSE. BUT I MEAN, THEY'RE LIKE, HOW ARE WE GOING TO GET COMPLIANCE ON THE STRS? THAT'S SOMETHING THAT, YOU KNOW, GABRIEL'S GOING TO HAVE TO FIGURE OUT BECAUSE I SEE HIM IN THE EYES, AT LEAST FOR THE NEXT TWO MONTHS, AND I WOULD RECOMMEND CONSULTANTS. YOU CAN HAVE WILLDAN OR ANY NUMBER OF FIRMS COME IN. AND AS YOU STAFF UP TO DO THOSE INSPECTIONS OF THE STARS, I WOULD NOT RECOMMENDING FULL TIME EMPLOYEES BECAUSE AT SOME POINT YOU WILL CATCH UP ON THOSE, YOU KNOW, INSPECTIONS AND THEN YOU'RE GOING TO HAVE A COUPLE OF EXTRA, YOU KNOW, BUILDING OFFICIALS SITTING AROUND AND, YOU KNOW, WE NEED TO STAY FLEXIBLE. SO BY IT YOU'RE SAYING, YEAH, CONSULT CONSULTANTS. LINCOLN, YOU SAID THAT YOU'RE PUTTING UP PUTTING TOGETHER A PROGRAM, I THINK SO THAT PEOPLE CAN NOW ACCESS IT AND THEN DO IT ALL ONLINE AS WELL. THAT WILL HELP STREAMLINE IT. YEAH. FROM, FROM THE MANAGEMENT SIDE, ALL THE DOCUMENTS WILL BE UPLOADED THERE. WE'LL BE ABLE TO SCHEDULE INSPECTIONS THROUGH THERE. THE INSPECTIONS STILL HAVE TO OCCUR, BUT A LOT OF IT IS GOING TO BE AUTOMATED. BEING ABLE TO PAY ONLINE, FILL OUT YOUR FORMS AND SUBMIT THEM ONLINE. THAT HELPS A GREAT DEAL ALLEVIATE BOTH FINANCING AND DEVELOPMENT DEPARTMENT BILL OR LINCOLN, YOU SAID THAT YOU WERE CONSERVATIVE WHEN IT CAME TO THE INCREASES. ARE YOU ALSO BEING CONSERVATIVE WHEN IT COMES TO THE DECREASES IN THE REVENUES? NO, I BASICALLY SO FOR SALES TAX, IT IT THAT IS WHAT WE WOULD LOSE IF WE LOSE THIS APPEAL. THE CONSTRUCTION TAX. I WORKED WITH THE DEPARTMENT, THE UNREALIZED GAIN. I BASICALLY SAID THAT BECAUSE RATES ARE GOING DOWN IT'S GOING TO BE A NEGATIVE UNREALIZED GAIN. THAT'S NOT THAT'S A FAIR MARKET ADJUSTMENT. SO IT'S LIKE NOT REAL MONEY GOING OUT THE DOOR. IT'S A IT'S A FAIR MARKET VALUE. SO IT'S UNREALIZED. IT'S NOT UNTIL YOU SELL AN INVESTMENT OR UNTIL IT COMES TO MATURITY THAT YOU WOULD HAVE THAT. AND WHEN IT COMES TO MATURITY, THAT UNREALIZED GAIN OR LOSS COMES TO ZERO. BUT I SAID WE MIGHT HAVE A LOSS OF 445,000. AND THEN THE PROPERTY TAX DECREASE. AND I DID BASED ON YEAR TO DATE BECAUSE WE GOT THE FIRST HALF OF PROPERTY TAX.

SO WE KNOW WHAT THE SECOND HALF OF THE YEAR IS GOING TO BE. SO I USED THAT. AND THEN FRANCHISE TAX WE HAD DATA FOR THE FIRST TWO QUARTERS. SO I CARRIED THAT OUT FOR THE NEXT TWO. THANK YOU.

ALL RIGHT. I LOOK FORWARD TO SEEING THE AUDIT CHEWING YOU UP. WELL I CAN TELL YOU RIGHT NOW THAT. THIS 263 IF IF WE COME IN RIGHT AT THIS, IT'S STILL IN THE FINANCIAL STATEMENTS GOING TO SHOW 2.363 BECAUSE THE 2.1 FOR AVENUE 52 THAT IS COMING OUT OF THE SAVINGS ACCOUNT.

YEAH. AND THAT'S THAT'S BEEN EXPENDED AND CALCULATED ALREADY. YEAH. AND WE KNOW THAT, RIGHT.

THAT WE, WE DREW DOWN, BY THE WAY, THE RESIDENTS, THEY LOVE IT. I MEAN, THEY'RE SPEEDING THROUGH THERE NOW. YEAH. I DRIVE ON IT EVERY DAY TOO. I LIKE IT. NOT SPEEDING. RIGHT.

[02:00:08]

[ Public Comments (Non-Agenda Items) (Limited to a maximum of 30 minutes. If additional time is required for public comments, they will be heard after Item No. 15. Public Hearing Calendar)]

[ Consent Calendar]

[ New Business Calendar (Legislative and Administrative)]

IS THERE ANYONE THAT WOULD LIKE TO BE THE APPOINTEE ON THAT? DO YOU WANT TO DO IT? OH, WELL, I WANTED TO NOMINATE COUNCIL MEMBERS. IT'S IT'S ONLINE. IT'S ONLINE. WHAT WHAT DAYS DO YOU KNOW? IT'S IT'S ONCE A MONTH AND IT'S IT'S NOT UNTIL THE EVENING. SO FOR THE THIRD WEDNESDAY. YEAH. SO I CAN'T DO EVENINGS. OH OKAY. I CAN'T, I CAN'T DO EVENINGS. THOSE DAYS I WOULD, I WOULD DO BUT EVEN THREE, THREE, FOUR OH AT 3 OR 4. YEAH. THEY BROUGHT IT DOWN.

OKAY. AS LONG AS IT'S AT 3 OR 4 I CAN DO IT. BUT IF IT'S IT'S LATER THAN THEN I CAN. SO THEY, THEY REDID THE POEMS. IT'S LIKE THREE NOW I THINK. SO IS THAT A. YEAH. YOU CAN DO IT. YEAH. YES.

OKAY. ALL RIGHT. I'LL MAKE THE APPOINTMENT OF COUNCIL MEMBER PEREZ. SHE ACCEPTS. CAN I GET A MOTION TO APPROVE THAT MOTION? THE MOTION? IS THERE A SECOND? I'LL SECOND ALL THOSE IN FAVOR.

SIGNIFY BY SAYING AYE. AYE? OR DO I NEED A ROLL CALL? YEAH. COUNCILMEMBER PEREZ. YES.

COUNCIL MEMBER DELGADO. YES. COUNCIL MEMBER. MEAD. AYE. MAYOR PRO TEM. FIGUEROA. AYE.

MAYOR HERNANDEZ, I MOVE ON TO ITEM NUMBER 15. THIS IS A FOLLOW UP OF LAST MEETING WHEN WE ASKED FOR A SPONSORSHIP FOR RESTAURANT WEEK IN THE CITY OF COACHELLA. YES. GOOD EVENING, MAYOR AND COUNCIL MEMBERS. CELINA JIMENEZ, DIRECTOR OF ECONOMIC DEVELOPMENT. THIS IS ITEM NUMBER 15. TO APPROVE THE SPONSORSHIP REQUEST OPTION FOR THE VISIT GREATER PALM SPRINGS RESTAURANT WEEK TO SPONSOR THE PARTICIPATION FEES FOR RESTAURANTS IN THE CITY OF COACHELLA. AND JUST A LITTLE BIT ABOUT RESTAURANT WEEK. THIS YEAR. IT'LL TAKE PLACE MAY 30TH THROUGH JUNE 8TH, 2026. SORRY, I DON'T KNOW WHY I WROTE IN 2025 ANYWAY. AND SO THIS YEAR'S EVENT WILL BE WILL CULMINATE. WE'LL ACTUALLY FEATURE 100. NO. PARDON ME. YOU KNOW WHAT THIS IS FROM LAST YEAR. DAVIS GAVE ME A RECAP OF LAST YEAR. AND SO LAST YEAR WE HAD 121 PARTICIPATING RESTAURANTS IN THE CITY OF COACHELLA. WE HAD TWO RESTAURANTS THAT PARTICIPATED, BECAUSE I THINK THIS WAS THE FIRST TIME THEY HAD HEARD ABOUT THE OPPORTUNITY.

[02:05:05]

WE HAVE SHIFTED RESTAURANT WEEK SO THAT ANY RESTAURANT CAN PARTICIPATE WITH A SPECIAL OFFER. IT DOESN'T HAVE TO BE A PREFIX MENU AT A CERTAIN PRICE POINT. SO WE'RE GOING TO DO A LOT MORE TO EDUCATE THE RESTAURANTS THAT THAT'S AN OPTION FOR THIS YEAR. WE ALSO, YOU KNOW, ARE GOING TO BE INCLUDING RESTAURANTS IN COACHELLA IN SOME OF OUR INFLUENCER AND MEDIA FAMS AS WELL AS BLOG CONTENT. SO GETTING SOME OF THOSE OFFERS AND PARTICIPATION EARLY WILL BE REALLY IMPORTANT. SO WE CAN HIGHLIGHT SOME OF THOSE. WE'RE REALLY LOOKING AT WAYS. I KNOW COUNCILMEMBER DELGADO MENTIONED, YOU KNOW, REALLY TELLING THOSE KIND OF AUTHENTIC FAMILY STORIES LAST TIME. SO LOOKING AT SOME OPPORTUNITIES TO DO THAT IN CONJUNCTION WITH RESTAURANT WEEK AS WELL. SO YES, AS SELENA MENTIONED, WE HAVE A, WE HAVE A PLAN TO GET OUT AND WE'VE BEEN WORKING THIS LAST YEAR ON GETTING MORE FAMILIAR WITH THE RESTAURANT OWNERS AND OPERATORS IN THE CITY OF COACHELLA, SO THAT THIS ISN'T AS MUCH AS A NEW ASK THIS YEAR TO PARTICIPATE. BUT AGAIN, JUST REALLY LOVED BEING ABLE TO TALK ABOUT HAVING PARTICIPATION FROM ALL NINE CITIES IN THE COACHELLA VALLEY. THE CITY SPONSORSHIP OF THIS EVENT HELPS US ADVERTISE IT LOCALLY. MOST OF OUR MARKETING DOLLARS NEED TO BE SPENT MARKETING TO VISITORS TO BRING THEM IN, WHICH OF COURSE WE LOVE TO DO WITH RESTAURANT WEEK. BUT THIS IS ALSO AN OPPORTUNITY TO TO SHARE WITH OUR LOCAL COMMUNITY AND FOLKS IN PALM SPRINGS AND DESERT HOT SPRINGS AND CATHEDRAL CITY ABOUT EAST VALLEY RESTAURANTS AND EAST VALLEY TO GET OUT TO THE WEST VALLEY RESTAURANTS AND THINGS LIKE THAT AS WELL. SO REALLY, AGAIN, APPRECIATE THE CITY'S SUPPORT AND HOPE TO BE ABLE TO WORK WITH THE CITY AGAIN TO BRING MORE RESTAURANTS IN COACHELLA INTO THE EVENT. THANK YOU. ANY QUESTIONS? AND I HAVE SOME OPTIONS FOR SPONSORSHIP HERE. AND SO DAVIS AND I PUT THIS TOGETHER AND WE FELT THAT, YOU KNOW, JUST BASED ON WE WANTED TO BE HUMBLE AND THINK ABOUT MAYBE TEN RESTAURANTS AT THE $4,000 LEVEL. HOWEVER, WE DID BREAK OUT LIKE WHAT OTHER SPONSORSHIP LEVELS LOOK LIKE IF WE SPONSORED 15 RESTAURANTS 20, 25. AND SO WE WANTED TO KIND OF GIVE OURSELVES A CHANCE TO REALLY JUST JUST ENCOURAGE PARTICIPATION. AND SO WE FELT THAT MAYBE OPTION ONE WOULD BE FEASIBLE, BUT WE ARE, YOU KNOW, RESPECTFUL TO THE WISHES OF THE COUNCIL. SO WHATEVER OPTION YOU GUYS THINK WE SHOULD TAKE, WE'LL BE HAPPY TO, TO, TO DO.

SELENA. HOW MANY DID WE HAVE LAST YEAR? WE HAD TWO. BUT THAT'S BECAUSE AS I MENTIONED, IT WAS KIND OF NEW TO THEM. AND I THINK PEOPLE THOUGHT THERE WAS OTHER LIKE OTHER FINE PRINT THAT THEY DIDN'T REALLY BELIEVE IN. BECAUSE I WANT TO SAY LAST YEAR YOU HAD A TASTE OF SUMMER AND THAT THREW PEOPLE OFF FOR SOME REASON, YOU KNOW? AND SO I THINK THEY FELT LIKE THE TASTE OF SUMMER PIECE BECAUSE IT CAME WITH IT. THEY WERE LIKE, WAIT, WHAT? I'M GOING TO DO WHAT AGAIN WITH SOCIAL MEDIA AND ALL THIS STUFF. AND SO I NOTICED THAT IT'S NOT EMBEDDED IN THIS YEAR'S PROGRAM, RIGHT? THE TASTE OF SUMMER OR THE SUMMER EATS PASS OR SUMMER EATS PASS.

AND WE ARE NOT DOING IT THAT SAME FORMAT THIS YEAR. SO JUST RESTAURANT WEEK THAT WE'RE FOCUSED ON IN THE OUTREACH. SO I THINK THAT THREW PEOPLE OFF. SO ANYWAY, SO IS YOUR OUTREACH CHANGING AS FAR AS GETTING OUR LOCAL RESTAURANTS BECAUSE WE HAVE A LOT OF MOM AND POP

[02:10:04]

OKAY. WHAT ARE THE WISHES OF THE COUNCIL? WHAT'S THEIR SPONSORSHIP? WHAT DO YOU THINK WE SHOULD DO? SO SELENA, REALLY QUICKLY, BECAUSE THERE WAS ONLY TWO RESTAURANTS, DOES THAT MEAN THAT IT WAS ONLY 800? YEAH. YEAH. YES. WE WERE ONLY ASSESSED THE WHATEVER THE. YEAH.

SO WE HAD UP TO $800. IT'S REALLY UP TO YOU. SO IT'S UP. YES. OH, AND WE DO RECOGNIZE THE CITY AT THE LEVEL THAT YOU DID THE UP TO. BUT IT'S IT'S WE'RE ONLY CHARGING FOR THE RESTAURANTS THAT ACTUALLY REGISTERED AND PARTICIPATED. SO, SO KEEPING THAT IN MIND, I'LL SUPPORT OPTION THREE. OR THREE. WAIT, SORRY, 20 RESTAURANTS AT 8000 BECAUSE YOU HAVE OPTION THREE AND THREE. YEAH. 25. OH I'M SORRY. YES. SO. SO 20 OR 25. I'M OKAY WITH DOING THAT. I DON'T KNOW WHERE COUNCIL. I'M OKAY WITH DOING THE MAX. AND THE REASON IS BECAUSE NOT EVERYBODY'S PARTICIPATING. IT'S JUST RIGHT. THAT'S THE THRESHOLD THAT'S UP TO YOU. AND WE ONLY PAY FOR WHAT THE $400 PER RESTAURANT. YEAH. YOU'RE GOING TO BE BUSY. DAVIS. YEAH.

WE HAVE JACKIE ON OUR TEAM ALSO WILL BE BUSY. BUT YEAH, YOU GET 25 RESTAURANTS SIGNED UP. I'LL SUPPORT THAT. I WOULD LOVE TO. ALL RIGHT. SO SELENA, ON THE OUTREACH, I DON'T KNOW WHAT THE OUTREACH WAS LIKE NECESSARILY LAST YEAR, BUT I THINK IT WOULD BE REALLY GOOD TO WHATEVER INFO WE'RE PUTTING OUT THERE THAT WE ALSO MAKE SURE IT'S IN SPANISH SO THAT OUR COMMUNITY IS AWARE, ESPECIALLY LIKE OUR SMALL BUSINESS COMMUNITY, THE RESTAURANTS THAT THEY KNOW LIKE, OH, YOU KNOW, VAMOS A PONER EL RESTAURANTE. LIKE WE CAN INCLUDE IT ON THERE. EVEN IF WE SHARE LIKE ON FACEBOOK, SOCIAL MEDIA, INSTAGRAM, ALL OF THAT TO MAKE SURE THAT WE HAVE IT IN SPANISH. THAT WAY SOME OF OUR COMMUNITY CAN TAKE ADVANTAGE OF IT TOO. THAT'S A GREAT POINT.

THANK YOU FOR THAT. AND, AND WE'LL DEFINITELY DEVELOP THAT COLLATERAL. YOU HAVE A PARTICIPATION KIT IN SPANISH. AND THIS YEAR, LAST YEAR WE DROPPED OFF A LOT OF MATERIAL.

BUT THIS YEAR WE'RE GOING TO PLAN A LOT MORE SCHEDULED MEETINGS SO THAT WE'RE NOT JUST TRYING TO CATCH PEOPLE AT THEIR RESTAURANT AND YOUR WEBSITE. ALSO THE RESTAURANT WEEK WEBSITE, IT TRANSLATES INTO SPANISH 30 PRESET LIKE THAT. YOU CAN DO IT. YES. OKAY. YEAH.

ALL RIGHT. COOL. WE SAID OPTION NUMBER FOUR. OKAY, 25 RESTAURANTS AT 10,000 UP TO THERE'S A MOTION. THERE'S A SECOND. SORRY. JUST TO CLARIFY, THE MOTION IS COUNCIL MEMBER DELGADO AND THE SECOND IS MYSELF. OKAY, SO I'LL TAKE ROLE. WELL, ACTUALLY, FOR THE RECORD, WE DON'T HAVE PUBLIC COMMENT FOR THIS ITEM. AND I WILL GO AHEAD AND TAKE ROLL. COUNCIL MEMBER PEREZ. YES. COUNCIL MEMBER DELGADO. YES. COUNCIL MEMBER. MAYOR PRO TEM FIGUEROA, A MAYOR HERNANDEZ, I MOVE FORWARD NOW ON THE CONSIDERATION OF ADOPTION REGARDING RESOLUTION 26 DASH 13 FOR THE ESTABLISHMENT OF A JOINT POWERS AGREEMENT FOR THE FORMATION OF THE COACHELLA ELECTRIC FINANCE AUTHORITY AND MAYOR, THE. THE PRESENTER WILL BE BRIAN FORBATH WITH STRADLING. HE'S ACTUALLY OUR BOND COUNCIL AND HE WILL GIVE THE. THE STAFF REPORT. THANK YOU. WELCOME. GOOD EVENING, MAYOR COUNCIL MEMBERS, BRIAN HORVATH GOOD TO SEE YOU ALL THIS EVENING. SO THE ACTION YOU HAVE BEFORE YOU THIS EVENING IS THE CREATION OF THE COACHELLA ELECTRIC FINANCING AUTHORITY, WHICH WOULD BE A JOINT POWERS AGREEMENT ENTERED INTO THE CITY WITH IN COOPERATION WITH THE IMPERIAL IRRIGATION DISTRICT, THE PURPOSE OF THE FINANCING AUTHORITY WOULD BE TO FINANCE NEEDED ELECTRICAL INFRASTRUCTURE WITHIN THE CITY, AND THE MEANS OF DOING THAT WOULD BE EVENTUALLY BE A SURCHARGE THAT WOULD BE LEVIED ON EVERY KILOWATT HOUR OF POWER THAT IS SOLD BY ID WITHIN THE

[02:15:04]

IT WOULD PROVIDE THE MECHANISM WHERE THE COACHELLA VALLEY FINANCE AUTHORITY, WHEN THEY ISSUE BONDS TO FINANCE THIS PROJECT, WOULD DELIVER THOSE MONIES TO ID, WHO WOULD THEN CONSTRUCT THE THE THE SUBSTATION ON BEHALF OF THE FINANCING AUTHORITY.

ADDITIONALLY, THERE'S WHAT WE CALL A SERVICING AGREEMENT, WHICH IS AGREEMENT BETWEEN THE COACHELLA VALLEY. EXCUSE ME. THE COACHELLA ELECTRIC FINANCING AUTHORITY AND ID, PURSUANT TO WHICH ID AGREES TO COLLECT THE SURCHARGE ON ITS BILLS AND TRANSMIT IT DIRECTLY TO A BOND TRUSTEE ON BEHALF OF THE FINANCING AUTHORITY. AND THAT'S GOING TO BE REALLY KEY COMPONENT AND REALLY IMPORTANT PART OF THE SECURITY FOR THE BONDS THAT ARE ULTIMATELY ISSUED TO FINANCE THESE IMPROVEMENTS IS THAT ID WILL TRANSFER THESE MONIES DIRECTLY OVER TO A BOND TRUSTEE TO BE USED TO PAY DEBT SERVICE ON THE BONDS. ONCE DEBT SERVICE ON THE BONDS HAS BEEN PAID, IF THERE'S EXTRA MONEY THAT'S LEFT OVER, THOSE MONIES WOULD THEN BE RELEASED TO THE FINANCING AUTHORITY TO BE USED FOR ADDITIONAL PROJECTS. ONE THING I SHOULD HAVE MENTIONED THIS AT THE OUTSET. THE BOARD OF THE FINANCING AUTHORITY WOULD BE THE CITY COUNCIL OF THE CITY. IT'S NOT ID, HOWEVER, THERE ARE CERTAIN THINGS THAT WOULD NEED ID, CONSENT OR APPROVAL FOR THE BOARD TO DO. THAT INCLUDES RAISING THE SURCHARGE, AN AMOUNT THAT'S 10% ABOVE THE SYSTEM AVERAGE RATE FOR ID, AND ALSO REQUIRES ID APPROVAL AS TO WHAT ARE THE PROJECTS TO BE FINANCED IN THE FORM OF THE PROJECT AGREEMENT. SO I THINK THAT'S IMPORTANT TO NOTE. ASSUMING THE COUNCIL WOULD LIKE TO MOVE FORWARD WITH THIS THIS EVENING. THE NEXT STEPS IS ID HAS SCHEDULED THE APPROVAL OF THIS AGREEMENT, ASSUMING IT'S APPROVED TONIGHT FOR THEIR MARCH 17TH BOARD MEETING. AT THAT POINT IN TIME, WE'D COME FORWARD AND HAVE THAT DOCUMENT EXECUTED. FILE THE THE JOINT POWERS AGREEMENT WITH THE SECRETARY OF STATE. AND THEN AT THAT POINT, WE'VE GOT A REAL LIVE JOINT POWERS AUTHORITY THAT'S BEEN CREATED. WE WOULD COME BACK, LIKELY COME BACK SOMETIME IN APRIL FOR AN INITIAL MEETING OF THE BOARD, PURSUANT TO WHICH WOULD BE SORT OF AN ORGANIZATIONAL MEETING WHERE YOU ELECT DIRECTORS AND OFFICERS AND ADOPT BYLAWS OF THE BOARD. THE ACTIONS TONIGHT DO NOT JUST WANT TO MAKE IT CLEAR, DO NOT APPROVE A SERVICE CHARGE IN ANY IN ANY MANNER TONIGHT. THAT'S THAT'S NOT WHAT'S BEFORE YOU TONIGHT. THAT'LL BE AN ACTION THAT'LL BE HAPPENED BY THE FINANCING AUTHORITY AT A AT A SUBSEQUENT MEETING. THIS. THE CITY HAS HIRED A CONSULTANT THAT'S DOING A RATE STUDY CURRENTLY, THAT'S DETERMINING SORT OF WHAT IS THE AMOUNT OF SURCHARGE THAT'S REQUIRED TO BUILD THE PROJECTS THAT THE FINANCE AUTHORITY, THE CITY COUNCIL, THE FINANCE AUTHORITY MAY WANT TO HAVE A BILL. AND SO THAT THAT RATE STUDY IS IN PROCESS AND WILL COME BACK TO THE FINANCING AUTHORITY AT SOME POINT IN THE FUTURE WHEN YOU ALL, WITH YOUR FINANCE AUTHORITY HATS ON, WOULD BE ASKED TO APPROVE THE SURCHARGE AT THAT POINT IN TIME. AND I THINK JUST IN TERMS OF EXPECTATIONS, ASSUMING APPROVAL TONIGHT, ASSUMING THE STUDY IS CONCLUDED IN DUE ORDER AND THE ORGANIZATIONAL ASPECTS ARE MET, I THINK THE PLAN WOULD BE TO TO ISSUE BONDS SOMETIME LATER THIS YEAR, NOT THE FISCAL YEAR, BUT CALENDAR YEAR, IN ORDER TO KICK START THESE PROJECTS. AND WITH THAT, I'M MORE THAN HAPPY TO ANSWER ANY QUESTIONS. I THINK WE HAVE SOME COLLEAGUES FROM ID HERE AS WELL THAT, YOU KNOW, IT'S GREAT THAT THEY CAME TO SUPPORT US IN THIS PROJECT. BUT IF IF ANYONE HAS ANY QUESTIONS, I'M MORE THAN HAPPY TO TRY TO ANSWER MY BEST ANSWER. ARE THERE ANY QUESTIONS? I HAVE A QUESTION. WHAT IS OUR OBJECTIVE IN IN LOOKING AT THIS MODEL, THE OBJECTIVE IS I BELIEVE IT'S IT'S A, IT'S IT'S A WAY TO SORT OF FAST TRACK INFRASTRUCTURE IMPROVEMENTS, TO PROVIDE RESILIENCY, REDUNDANCY TO EXISTING, YOU KNOW, RATEPAYERS IN, IN COACHELLA. SO WE RESILIENCY AND REDUNDANCY. CORRECT? YEAH. OKAY. ANY OTHER QUESTIONS? AND THIS WOULD HELP

[02:20:04]

IT WAS ONE OF MY GOALS BEFORE I RETIRED TO MAKE SURE THAT THIS WAS BEFORE THE COUNCIL, BECAUSE THIS IS VERY IMPORTANT FOR THE. THE FUTURE OF THE CITY, AND I'D LIKE TO THANK THEM AND THEIR GENERAL MANAGER, JAMIE ASBURY, FOR ALL OF THEIR SUPPORT AND AND GETTING THIS THROUGH TO THE COUNCIL TONIGHT. SO THANK YOU, GENTLEMEN. THANK YOU. AND DO WE HAVE ANY. SORRY. THANK YOU GUYS.

DO WE HAVE ANY PUBLIC COMMENTS ON THIS ITEM. WE DO NOT HAVE ANY PUBLIC COMMENTS. THANK YOU.

TO FOLLOW UP ON THAT BILL, I KNOW THAT THIS WAS ONE OF YOUR GOALS TO TO COMPLETE OR TO PUT THROUGH PRIOR TO LEAVING. SO THANK YOU TO, TO MEETING THAT, YOU KNOW, DEADLINE OF BEFORE HIS DEPARTURE. SO THANK YOU GUYS FOR YOUR HARD WORK. BILL, CRACK THE WHIP ON ALL OF US.

THANK YOU. I'D I KNOW WE'RE WORKING WITH YOU ON THIS AND THEN ALSO ON WHAT WOULD BE OUR GREENFIELD. SO, YOU KNOW, OUR, OUR GOAL IS TO ENSURE THAT WE CAN MEET RESILIENCY AND REDUNDANCY IN THE CITY AS WELL AS ALL OURSELVES, YOU KNOW, TO, TO LOOK AT FUTURE ENDEAVORS AND THINGS OF THAT SORT. BUT, OKAY, WHAT ARE THE WISHES OF THE CITY COUNCIL? IS THERE A MOTION TO APPROVE? A MOTION TO APPROVE? IS THERE A SECOND? OH, GO AHEAD. SECOND. OKAY, I'LL TAKE ROLL. COUNCIL MEMBER PEREZ. YES. COUNCIL MEMBER DELGADO. YES. COUNCIL MEMBER. MAYOR PRO TEM FIGUEROA. YES. MAYOR HERNANDEZ, I WE'LL MOVE ON NOW TO ITEM NUMBER 17. THIS IS TO ADOPT RESOLUTION 2026 DASH 16, APPOINTING GABRIEL GONZALEZ AS THE INTERIM CITY MANAGER PURSUANT TO GOVERNMENT CODE SECTION 2120 21B MR. CITY ATTORNEY YES, THANK YOU, MAYOR AND COUNCIL. IT'S MY PLEASURE TO INTRODUCE THIS NEXT ONE. THE ITEM BEFORE YOU IS FOR THE APPOINTMENT OF GABRIEL GONZALEZ AS THE CITY'S NEXT INTERIM CITY MANAGER. MR. GONZALEZ IS A SEASONED MUNICIPAL EXECUTIVE OFFICER WITH OVER 27 YEARS OF EXPERIENCE, INCLUDING TWO DECADES AS CITY MANAGER OF SMALL, MEDIUM AND LARGE SIZED, CULTURALLY DIVERSE COMMUNITIES.

MR. GONZALEZ IS A CALPERS RETIREE. THAT MEANS AS PART OF HIS APPOINTMENT, IT WILL NEED TO BE DONE VIA A RESOLUTION. THAT RESOLUTION IS INCLUDED IN YOUR AGENDA PACKET, ALONG WITH THE PROPOSED EMPLOYMENT AGREEMENT. THE AGREEMENT IS FOR MR. GONZALEZ TO START ONE WEEK FROM TODAY ON MARCH 18TH, WHICH IS TO COINCIDE EXACTLY FOLLOWING MR. PATTERSON'S RETIREMENT ON THE 17TH. PROPOSED SALARY IS $137.98 AN HOUR. THERE'S NO OTHER ADDITIONAL COMPENSATION OR BENEFITS ASSOCIATED WITH HIS COMPENSATION. THE END DATE WOULD BE AS WE WORK THROUGH FINDING A PERMANENT CITY MANAGER. IT'S UPON THE APPOINTMENT OF THAT PERMANENT CITY MANAGER. SO BASED ON THE FACTS AND THE STAFF REPORT, INCLUDING THE DOCUMENTS THAT ARE ATTACHED, STAFF RECOMMENDS COUNCIL CONSIDER THE ADOPTION OF A RESOLUTION APPOINTING GABRIEL GONZALEZ AS THE NEXT INTERIM CITY MANAGER. THAT IS PURSUANT TO GOVERNMENT CODE SECTION 21221H. THANK YOU. MR. GONZALEZ IS HERE. WOULD YOU LIKE TO ADDRESS THE CITY COUNCIL STAFF? LET'S MAKE SURE WE CLOSE THE DEAL, THOUGH, FIRST. RIGHT. AARON. COUNCIL, THANK YOU FOR THE OPPORTUNITY TO APPRECIATE THE OPPORTUNITY TO SERVE AS YOUR NEXT INTERIM CITY MANAGER, IF I MAY, REALLY QUICK, BILL. CONGRATULATIONS.

FROM ONE COLLEAGUE TO ANOTHER. WELCOME TO RETIREMENT LIFE. AND YOU LEAVE SOME VERY BIG SHOES TO FILL. SO FROM EVERYTHING I HEARD TO AMERICAN COUNCIL AND TO CITY, THE CITY TEAM, I LOOK

[02:25:05]

WHAT ARE THE WISHES OF THE CITY COUNCIL? IS THERE A MOTION TO APPROVE? WE'LL JUST CONFIRM.

THERE'S NO OTHER PUBLIC COMMENT ON THIS ITEM. THERE ARE NO PUBLIC COMMENTS. IS THERE A MOTION TO APPROVE? I'LL MAKE A MOTION TO APPROVE. SECOND, THERE'S A SECOND. CAN WE GET A ROLL CALL? YES. COUNCIL MEMBER PEREZ. YES. COUNCIL MEMBER DELGADO. YES. COUNCIL MEMBER VEGA, A MAYOR PRO TEM. FIGUEROA I MAYOR I. THERE ARE NO PUBLIC HEARING ITEMS. WE'LL MOVE ON TO

[ Reports and Requests]

I KNOW ANDREW WAS THERE. JANELLE. PERCY TRAMVIA AGAIN FOR THEIR HOSPITALITY. SUNLINE FOR DONATING THE BUS THAT THAT, YOU KNOW, TOOK US AROUND THE EASTERN COACHELLA VALLEY. IT WAS PRETTY NICE BECAUSE IT WAS HOT. SO BEING INSIDE THE AC WAS ACTUALLY REALLY NICE. FOOD WAS EXCELLENT. AWESOME, AWESOME, AWESOME TOUR. GOT TO LEARN A LOT. I DIDN'T EVEN KNOW THAT UCR HAD A LOCATION OUT IN THE EASTERN END, WHERE THEY HAVE STUDENTS THAT ARE GROWING OUT THERE AND TRYING TO GROW MORE CROPS OUT HERE LIKE PISTACHIOS, WHICH WAS I WAS SURPRISED THAT WE CAN ACTUALLY GROW OUT HERE IN THE EAST END. SO IT WAS, IT WAS REALLY GOOD, REALLY, REALLY GOOD TURNOUT. I WAS ALSO ABLE TO ATTEND EL DIA DEL NINO AT THE VETERANS PARK. I'D LIKE TO THANK RIVERSIDE COUNTY OF EDUCATION. ANDREW WAS THERE JUST THE BOTH JESSICA'S WERE THERE. ALL CITY STAFF THAT WAS THERE. IT WAS AN AWESOME EVENT. I'VE ATTENDED IT THE PAST COUPLE OF YEARS. I THINK THIS IS MY THIRD YEAR AND IT'S THE BEST I I'VE SEEN YET. IT WAS.

THERE WAS A LOT OF FAMILIES, THERE WAS A LOT OF BOOTHS, A LOT OF INFORMATION. THEY HAD THESE TWO CLOWNS THAT MADE ME LAUGH. I WOULD DEFINITELY HIRE THEM. GOOD. GOOD EVENT. I'D ALSO LIKE TO THANK CODE ENFORCEMENT. KENDRA. I WAS OUT AT THE CITY PAYING A PERMIT BECAUSE MY BREAKERS WENT OUT, SO IT COST A LOT OF MONEY. IT'S NOT, IT'S NOT CHEAP. SO WHILE I WAS THERE PAYING MY PERMIT, THERE WAS A GENTLEMAN WHO WHO DIDN'T KNOW WHO I WAS. AND WE WERE TALKING AND HE'S LIKE, OH YEAH, YOU KNOW, I HAVE A PROPERTY BEHIND FAST TRIP. HE GOES, BUT I WAS TALKING TO CODE ENFORCEMENT OFFICER HERNANDEZ. AWESOME GUY, WORKED WITH ME. I PUT UP MY GATE ALREADY. I GUESS THEY'RE STILL TRYING TO CLEAN UP THE OTHER HALF. HE WAS TALKING ABOUT HOW, YOU KNOW, HE'S SEEN A LOT OF DRUG TRAFFICKING. THERE'S BEEN LIKE SEX TRAFFICKING. ACCORDING TO THIS GENTLEMAN. HE GOES, I KNOW THAT ME PUTTING UP MY GATE IS GOING TO HELP PREVENT SOME OF THESE ISSUES. SO HE WAS HE WAS VERY GLAD AND APPRECIATED THE WAY THAT KENDRA, YOU AND YOUR TEAM ACTUALLY DEALT WITH THE ISSUE WITH HIM, GAVE HIM THE OPPORTUNITY TO CLEAN UP, YOU KNOW, WITHOUT BEING CHARGED ALL THESE HEFTY FINES, YOU KNOW, SO HE WAS REALLY GRATEFUL. HE HE SAID, YOU KNOW, OFFICER HERNANDEZ DID AN AWESOME JOB.

YOU GUYS DID AN AWESOME JOB. THANK YOU. I KNOW IT'S GETTING CLEANED UP. I KNOW IT WAS A THING THAT WAS PUT ON THE BURNER ON THE BACK BURNER FOR A WHILE, AND NOW IT IS GETTING TAKEN CARE OF. SO THANK YOU, THANK YOU, THANK YOU. I THINK OUR RESIDENTS ARE GOING TO BE VERY HAPPY WITH THAT. AND ALSO TO THE PARENTS. FOR THE GIRLS ON THE SOCCER TEAM THAT CAN'T ATTEND SACRAMENTO, THERE WAS A DISCOUNT CODE ON THE SCHOOL WEBSITE. I THINK IT SHOULD STILL BE AVAILABLE. CAN ATTEND. GO AHEAD AND DOWNLOAD IT. IT'S $7 FOR THE WHOLE MONTH. YOU CAN GO AHEAD AND SEE THE GIRLS PLAY SOCCER TEAM THAT VERY PROUD OF, VERY PROUD OF, MADE, MADE, RECORD MADE HISTORY. BILL. THANK YOU AGAIN. I HOPE THIS THIS ISN'T THE END. I HOPE WE CONTINUE TO SEE EACH OTHER AND I DO WISH YOU THE BEST. BILL. THANK YOU. AND THAT'S ALL I HAVE FOR NOW. GOOD COUIL MEMBER. THANK YOU. SUNLINE SUNLINE TRANSIT AGENCY STARTED THEIR REIMAGINED STAKEHOLDER WORKSHOPS. IT STARTED MONDAY, FOLLOWED UP TUESDAY, AND THEN THEY'RE SCHEDULED THROUGHOUT THE REST OF THE YEAR. YOU KNOW WHAT, BILL, I'VE BEEN I'VE BEEN THINKING TOO, IS SOME OF THE CONSULTANTS THAT WE HAVE, YOU KNOW, WE HAVEN'T RECEIVED UPDATES FROM THEM. YOU KNOW, THE THE LIAISON AT THE STATE LEVEL AND YES, LOBBYISTS. SORRY.

[02:30:03]

WELL, I NEVER RECEIVED ANYTHING FROM HIM, BUT I KNOW THAT WE STILL HAVE THE LOBBYISTS AT THE STATE LEVEL. AND SO I, I KNOW THAT HE, HE SOMETIMES COMES, I THINK ONCE A YEAR. I DON'T THINK I SEEN HIM LAST YEAR. AND SO I WOULD LIKE TO GET UPDATES AND NOT JUST ONCE A YEAR, THOUGH MORE FREQUENTLY, YOU KNOW, BECAUSE IF THEY'RE GOING TO BE ON OUR PAYROLL EVERY MONTH, THEN, YOU KNOW, WE SHOULD BE GETTING UPDATES FROM THEM. I'M LOOKING FORWARD TO GROUNDBREAKINGS AND GRAND OPENINGS. I, I'M HOPING THEY'RE THEY'RE GOING TO COME SOON.

ANDREW. FOR THE NINTH OR THE NINTH STREET PARK. THAT'S THAT'S COMPLETED. RIGHT. THAT'S COMPLETED. AND THEN THERE ARE OTHERS THAT WE HAVE HOPEFULLY SOON, YOU KNOW, WITH THE LIBRARY ANNEXATION, I THINK. AND THEN THE THE CRC, I DON'T KNOW IF I DON'T KNOW, WOULD WE BE ABLE TO TO DO THE GRAND OPENING OR GROUNDBREAKING THIS YEAR? WE JUST RECEIVED RFP INFORMATION BACK. AND SO WE'LL BE READING THOSE AND THEN BRINGING OUR RECOMMENDATION BACK TO THE COUNCIL. AND THEN AFTER IT'S AWARDED, THEN. YES. THANK YOU. AS COUNCIL MEMBER PEREZ SHARED, THE THE AG VISION WAS VERY SUCCESSFUL. WE HAD MANY REPRESENTATIVES. WE HAD ONE A REPRESENTATIVE FROM CONGRESSMAN RAUL REECE'S OFFICE. WE HAD A REPRESENTATIVE FROM SENATOR PADILLA'S OFFICE. I'M NOT SURE IF WE HAD ONE FROM JEFF GONZALEZ'S OFFICE. SO WE HAD MANY ELECTEDS FROM THROUGHOUT RIVERSIDE THAT ALSO ATTENDED. AND THAT WAS THE GOAL IS TO BRING OUT, YOU KNOW, POLICY MAKERS AND ANYONE ELSE THAT THAT HAS AN IMPACT ON, ON THE AGRICULTURE AND THE CHALLENGES THAT THEY'RE GOING THROUGH. SO IT WAS REALLY WELL RECEIVED. THEY WERE VERY HAPPY WITH IT. AND SO WERE WE. SUNLINE DID PROVIDE A BUS, A SAFETY TRUCK, AND THEN ALSO THREE MEMBERS OF THEIR PERSONNEL. AND THEN WE RECEIVED FINANCIAL DONATIONS FROM THE GREATER VISIT, PALM SPRINGS AND THEN DESERT HEALTHCARE DISTRICT AS WELL. SO, SO WE ENJOYED THAT. A GREAT, A GREAT. A LOT. WE ENJOYED IT A LOT, A GREAT DEAL.

I WAS TRYING TO GET TO DAY OF THE YOUNG CHILD. THANK YOU TO ANDREW AND JEANETTE AND THE REST OF THE TEAM. IT WAS VERY WELL DONE. IT REALLY WAS. IT WAS A LOT OF FUN. IT'S. IT'S BY FAR ONE OF MY FAVORITE EVENTS IS THE DAY OF THE YOUNG CHILD. SO SO THAT WAS VERY SUCCESSFUL.

PEOPLE WERE HAVING A GREAT TIME. FAMILIES, YOU KNOW, WERE HAVING A GOOD TIME, KIDS WERE HAVING A GOOD TIME. AND IT WAS REALLY WELL ATTENDED AS WELL. ALSO IS THE ATP EIGHT CYCLE IS OPENING UP SOON. AND SO I HOPE THAT WE'RE GETTING PREPARED TO TO SUBMIT FOR THAT. I KNOW THAT THEY THAT THEY'RE WANTING US TO SUBMIT. AND SO I THINK THAT WE'RE WE'RE WE HAVE A GREAT SHOT OF, OF GETTING THIS GRANT AS WELL. SO WITH THAT, I'LL CLOSE UP MAYOR PRO TEM I APOLOGIZE THAT THE REASON I NOMINATED COUNCILMAN PEREZ IS SHE'S ONLY ON ON ONE. NO, NO, NO NO IT'S ALL GOOD. YEAH. AND THEN I REALIZED AFTER MY CALENDAR I'M LIKE, OH WAIT, IT'S IT'S EARLY IN THE DAY. SO IT DIDN'T WORK FOR ME. THAT'S FINE. BUT SHE'S OBVIOUSLY HERE TILL 2028. SHE IS THE NEWEST MEMBER OF COUNCIL. AND THERE'S A LOT OF I THINK EXPERIENCE.

AND YEAH, I THINK THEY'RE GOING A LOT OVER THERE. SO IT'S FINE IF YOU'RE A COUNCIL MEMBER.

THANK YOU. JUST A COUPLE OF REQUESTS. BEFORE I FORGET, I WAS TRYING TO GET THEM ALL DOWN, BUT HUGE CONGRATS TO THE GIRLS SOCCER TEAM. THEY'RE DOING PHENOMENAL. THEY HAVE A GAME ON FRIDAY, SO WE'RE SENDING THEM ALL OF OUR GOOD ENERGY AND SPIRITS. WE'RE HOPING THAT THEY'RE ABLE TO TAKE ANOTHER WIN. THEY DID WIN THE SOUTHERN CALIFORNIA REGIONALS. SO NOW THEY'RE GOING TO PLAY THE BEST TEAM IN NORCAL, WHICH IS VERY EXCITING. AND IT'S ON FRIDAY.

SO AGAIN WE'RE HOPING THAT THEY DO WELL. AND I KNOW THEY WERE SUPPOSED TO COME IN TODAY AND

[02:35:06]

THANK YOU STAFF. THANK YOU FOR BEING HERE. AS ALWAYS. I APPRECIATE YOU ALL. THANK YOU FOR ALL OF THE GREAT WORK THAT YOU DO AND FOR HANGING IN THERE WITH US THROUGH EVERYTHING. I HEARD THAT THE EVENTS WENT REALLY GREAT. SO CONGRATS ANDREW. THANK YOU FOR ALL OF YOUR HARD WORK. AND BILL, THANK YOU SO MUCH FOR EVERYTHING. WE APPRECIATE YOU. IT WASN'T EASY, I'M SURE, AT THE VERY BEGINNING, BUT BUT I DO APPRECIATE EVERYTHING THAT YOU DID. AND I HOPE THAT YOU HAVE A GREAT RETIREMENT AND YOU ENJOY IT. THANK YOU. MAYOR PRO TEM SO I DID ATTEND THE WOMEN'S THE COACHELLA VALLEY HIGH SCHOOL WOMEN'S SOCCER, THE DIVISIONAL ONE ON SATURDAY. LIKE I MENTIONED EARLIER. SOMEONE GOT TOO EXCITED. THEY SPILLED THEIR RED SLUSHIE FROM SLUSH LIFE FROM FROM LUIGI'S. AND I'M LIKE, THAT'S PART OF THE EXPERIENCE.

YOU'RE THERE AND EVERYONE GETS EXCITED. IT WAS THE FIRST GOAL BECAUSE THE OTHER TEAM HAD JUST MADE THEIR FIRST GOAL AND WE WERE LIKE, MAN, IT WAS THE THEY MADE THEIR FIRST GOAL IN THE FIRST HALF OF THAT GAME AND THEN WENT INTO HALFTIME, AND THE GIRLS CAME OUT ON THAT SECOND HALF AND THEY JUST TOOK IT ON TOP AND AND WON THAT CHAMPIONSHIP GAME THERE. BUT YOU KNOW, THE PRICE YOU PAY FOR VICTORY IS JUST SOME ICY ON YOU ON TOP OF YOUR FOREHEAD. SO BUT THAT WAS YOU KNOW, IT'S PART OF THE EXPERIENCE OF, YOU KNOW, GOING IN AND IT WAS REALLY COOL BECAUSE YOU GOT TO SEE THE COMMUNITY COME TOGETHER. FAMILIES, NEIGHBORS AND THE STUDENTS. AND I THINK THAT'S WHAT, YOU KNOW, PART OF THAT IT'S, IT'S IMPORTANT THAT WE SEE THAT IN, IN THE SPORTS BECAUSE SOME OF THOSE, A LOT OF THEM ARE SENIORS, BUT SOME OF THEM ARE FRESHMEN, SOPHOMORES AND JUNIORS THAT, YOU KNOW, THIS IS GOING TO MAKE AN IMPACT IF THEY'RE GOING TO WANT TO PLAY DIVISION ONE IN COLLEGE, AND SCOUTS ARE GOING TO COME OUT NEXT SEASON AND AND SEE THEM AND THEY KNOW WHO THEY ARE. AND, YOU KNOW, THEY'RE GOING TO CALL THEM UP AND SAY, HEY, YOU WANT TO COME PLAY D1, D2, D3, SOCCER AND, AND HOW ARE YOUR GRADES? AND YEAH. THAT'S THE IMPORTANT PART, RIGHT? SO, BUT THAT WAS EXCITING WITH THAT AND REALLY SEEING HOW THAT. SO I'M EXCITED TO SEE THEM IN THE NEXT MEETING. I WENT YESTERDAY TO THE. I WENT TO SACRAMENTO YESTERDAY FOR THE MOSQUITO AND VECTOR CONTROL ASSOCIATION

[02:40:05]

AND FEMALE MOSQUITOES CAN ONLY BREED ONCE. AND IF THEY DON'T BREED, THEN THEY DIE. SO THEN IT ERADICATES THE THE VECTOR. SO. AND ALSO, IF YOU HAVEN'T, YOU SHOULD GOOGLE CAL SERVE.

IT'S A MOSQUITO CONTROL. SYSTEM WHERE YOU CAN SEE THE HIGH POINTS AND WHERE CERTAIN DISEASES THAT MOSQUITOES CARRY AND, AND THE PROXIMITY OF THAT. SO THAT'S PRETTY COOL. IT'S ACCESSIBLE. IT'S MANAGED BY UC DAVIS AND THE STATE HAS A PERMANENT BUDGET LINE FOR THAT.

SO MAKING SURE THAT THAT CONTINUES TO STAY FOCUSED THERE. I'M EXCITED FOR THE SUAVECITO SUNDAY ON SUNDAY. SO I'M LOOKING FORWARD TO THAT. I DID ATTEND THE LYFT RIDES THIRD ANNUAL EVENT THIS PAST SATURDAY. HAVEN'T BEEN TO A PARTY AT THE AIR MUSEUM LIKE THAT IN A LONG TIME. SO THAT WAS VERY INTERESTING. AND CELEBRATING THEIR WORK THAT THEY'VE BEEN DOING HERE IN THE COACHELLA VALLEY. AND, AND IT'S VERY IMPORTANT THAT THE WORK THAT THEY'VE BEEN DOING. SO. AND LASTLY, I RECEIVED AN EMAIL ABOUT FROM KOFIM FROM CLAUDIA ARMENTA. I KNOW THAT THEY HAD COME AND PRESENTED ABOUT THE IMMIGRATION PROGRAM, AND I KNOW THERE WAS SUPPOSED TO BE A ROUND TABLE. AND SO I JUST WANT TO MAKE SURE THAT, YOU KNOW, THAT THAT ITEM DOESN'T GET FALLEN OFF THE RADAR. AND WE WERE ABLE TO, YOU KNOW, WE FIND A WAY TO MAKE THAT, THAT I KNOW THAT THE, THE MEETING GOT CANCELED, BUT KIND OF A FOLLOW UP IN THAT PROGRAM BECAUSE WE DID, WE DID HAVE THAT. AND IT JUST, YOU KNOW, DIDN'T DIDN'T FIZZLE THROUGH YET. SO MAKING SURE THAT PLANNING OF IT WHERE IT ENDS UP AT. SO I TO TALK TO ONE OF THE SCHOOL BOARD MEMBERS, AND THEY DID MENTION TO ME THAT POTENTIAL PARADE. SO I DON'T KNOW HOW FEASIBLE THAT IS. BUT, YOU KNOW, I MEAN, THEY DO IT FOR THE LAKERS WHEN THEY WIN CHAMPIONSHIPS. RIGHT. SO BUT I KNOW THAT'S ALSO LA BUT BUT YOU KNOW I THINK OR JUST SOMETHING SOME TYPE OF AN EASY ROUTE DOWN SIXTH STREET. YEAH. EASY THERE. AND THEN THAT'S KIND OF JUST IT ON MY POINT. THEN I'M EXCITED TO SEE THE RESTAURANT WEEK THIS YEAR. SO HOPEFULLY MORE PEOPLE WILL PARTICIPATE. SO, SO SUNDAY WE HAVE ONE THIS SUNDAY ACTUALLY WE ONLY HAVE ONE. AND I HEARD WE HAVE SOME JUDGES AND COUNCIL MEMBER DELGADO IS GOING TO BE A JUDGE OF OF A COUPLE OF LOW RIDERS FROM WHAT I UNDERSTAND. BUT WHAT I'M EXCITED ABOUT AND A GOOD THINKING ON ANDREW'S PART IS THAT THE ACTUAL SITE IS SHIFTING. AND WE'RE GOING TO PROGRAM THE BACK OF THE LIBRARY. I'M EXCITED TO SEE THAT. IT'S SUCH A GREAT AREA, AND IT'S ONE THAT I THINK IS GORGEOUS AND IT SETS UP REALLY NICE. AND IF YOU'VE EVER BEEN TO CARS AND COFFEE, THEY KIND OF THEY KIND OF WRAP AROUND THE LIBRARY AND IT WORKS OUT REALLY WELL. SO I LIKE THAT, ANDREW. BECAUSE IT DOESN'T, IT DOESN'T REALLY, I MEAN, YOU CAN SHUT DOWN A FEW STREETS AND, AND YOU MEET YOUR OBJECTIVE AND IF YOU NEED TO STRETCH IT OUT, ALL YOU GOT TO DO IS PUSH THE BARRICADE A LITTLE BIT, YOU KNOW, AND THAT'S, THAT'S A GOOD LITTLE IDEA. AND THEN NEXT WEEK. RIGHT. MARIACHI, I BELIEVE NEXT SATURDAY 21ST, 21ST, I'M GOING TO HAVE THEM PLAY A EL NINO PERDIDO OR SOMETHING LIKE THAT. THAT WAY THEY CAN CELEBRATE YOU.

BUT, BUT YOU KNOW, IT'S AN EXCITING LITTLE TIME. AND ON A PUBLIC SAFETY, YOU KNOW, IT'S SOMETHING WE SHOULD BE AWARE. I JUST IT'S A IT'S WEIRD TIMES RIGHT NOW, YOU KNOW, JUST THE GOVERNOR'S ADDRESSING IT. WE SHOULD BE AWARE, RIGHT? DRONE STRIKES FROM IRAN. AND SO I JUST, I, I THINK WE WOULD BE REMISS IF WE DIDN'T GO OVER OUR KIND OF OUR OPERATION, OUR OS PLAN. THOSE ARE SOMETHING THAT, YOU KNOW, GABRIEL'S HERE AND WE SHOULD THINK ABOUT BECAUSE I KNOW THAT'S SOMETHING THAT EVERYBODY RIGHT NOW IS STARTING TO TALK ABOUT. AND SO I KNOW, CHIEF, YOU'RE BOTH FOR FIRE AND, AND OUR AND OUR SHERIFF TEAM, WE NEED TO THINK ABOUT THAT.

AND THEN ALSO THINK ABOUT OUR RESPONSE AS A COMMUNITY. IT'S JUST IT'S VERY DIFFERENT. IT'S SCARY. BUT NONETHELESS, WE NEED TO BE PREPARED. SO WITH THAT, THE FLOOR IS YOURS, MR. CITY MANAGER. THANK YOU. I DID GET INFORMATION. I'M SORRY, THE RESIDENT ACADEMY, WE HAD A WE HAD A GREAT GRADUATION RECENTLY THAT WAS REALLY NEAT. AND IT WAS A PROGRAM THAT WAS STARTED THREE YEARS AGO, THREE, FOUR YEARS AGO. AND WE'VE HAD THREE GRADUATING CLASSES. AND IT JUST

[02:45:04]

AND DIRECTOR OUR OUR DIRECTOR ESTRADA, YOU KNOW, HE I HEAR YOU DO AN EXCITING JOB IN PRESENTING. WHEN YOU FLUSH IT, WHERE DOES IT GO? SO I THAT'S PRETTY COOL. IT ALWAYS GIVES ME THE BIGGEST KICK. BUT YEAH, IT'S A, IT'S AN EXCITING ACADEMY. SO GOOD JOB STAFF AND EVERYBODY THAT'S BEEN WORKING ON THAT AND BEEN PART OF THAT AND WORKING WITH THE COMMUNITY.

BILL, THE FLOOR IS YOURS. THANK YOU. I WILL ANSWER. COUNCIL MEMBER VERHAGEN, I'M SORRY THAT YOU MISSED THE PRESENTATION FOR ME. THE THE PROCLAMATION, BUT I'D LIKE TO THANK YOU. I KNOW THAT WHEN I FIRST GOT IN, I WAS TALKING ABOUT STAFF AND TRUST AND HOW, YOU KNOW, WE'VE KIND OF COME FULL CIRCLE. AND THAT HAPPENED WITH US AS AS WELL. AND I THANK YOU FOR THAT. IT WAS A TUMULTUOUS TIME. AND, YOU KNOW, WE HAD OUR UPS AND DOWNS THROUGHOUT THE YEAR TOO. AND BUT WE ALL ENDED UP TOGETHER. AND I WAS KIND OF TALKING ABOUT HOW YOU ALL WANT THE SAME THING.

YOU GO ABOUT IT DIFFERENTLY, BUT YOU ALL WANT THE BEST FOR THE COMMUNITY. AND I TAKE PRIDE IN WHAT WE ACCOMPLISHED IN THE SHORT TIME THAT I WAS BACK AGAIN AND WHAT HAPPENED BEFORE IN THE PAST. BUT THANK YOU FOR YOUR SUPPORT AND YOUR, YOUR EFFORTS AND, AND YOUR CARE FOR THE COMMUNITY AS WELL. THE BILLBOARD THE BILLBOARD IS AVAILABLE FROM MAY 1ST UNTIL JUNE 1ST. YEAH. SO IF THEY CAN GET THAT PICTURE, WE CAN GET IT UP THERE. WE USE THE BILLBOARD AFTER JUNE 1ST TO ADVERTISE FOR 4TH OF JULY, SO BUT IT IS AVAILABLE FOR A MONTH. YES.

THANK YOU AGAIN. I'D LIKE TO. THIS IS IT. I'M I KEEP ON SAYING THIS IS IT UNTIL IT'S NOT. BUT STAFF. THANK YOU. IT'S BEEN GREAT WORKING WITH YOU. YOU KNOW, THE CITY IS ONLY AS GOOD AS STAFF MAKES IT. AND JUST LIKE WE SHINE FOR THE COUNCIL, YOU SHINE FOR ME AND YOU SHINE BRIGHT. AND THANK YOU. WITH EVERYTHING THAT HAPPENED AND WHAT WE'VE BEEN THROUGH AND WITH PEOPLE RESIGNING OR RETIRING OR WHATEVER HAPPENED, YOU KNOW, WE WE MADE IT THROUGH AND THERE'S STILL A LOT TO DO. AND I, I, I'M HANDING IT OFF IN GOOD HANDS. AND ULTIMATELY YOU WILL HAVE ANOTHER LEADER. BUT I WANT TO THANK EACH AND EVERY ONE OF YOU FOR MAKING ME SHINE, BECAUSE WITHOUT YOU, NOTHING HAPPENS. AND YOUR LEADERSHIP IN YOUR DEPARTMENTS BECAUSE YOU KNOW, IT TRICKLES DOWN. EVERYBODY LOOKS AND SEES WHAT'S GOING ON ABOVE THEM. AND SOMETIMES PEOPLE GET LOST IN THE COMMOTION OF WHAT'S GOING ON. AND YOU CAN LOSE HOURS AT A TIME JUST THINKING ABOUT THE WHAT IFS, AND EVERYBODY'S STUCK TO THEIR JOB. AND THEN WHEN JOBS SHIFTED AND, YOU KNOW, OTHERS TOOK ON ADDITIONAL RESPONSIBILITIES, KENDRA, ANDREW, YOU GUYS STEPPED UP. YOU DIDN'T COMPLAIN. YOU JUST WHAT CAN I DO? AND THANK YOU.

I'M YOU GUYS DID A WONDERFUL JOB. AND THE NEXT MANAGER COMING IN BEHIND ME SHOULD BE PROUD TO HAVE YOU AS A STAFF. YOU'RE WONDERFUL. AND THANK YOU. AND PUBLIC SAFETY ALWAYS. THANK YOU FOR EVERYTHING. BILL, CAN YOU MENTION THE THE RETIREE THAT WE JUST HAD WHEN WE DID THE LUNCH FOR THE EMPLOYEE? WILL YOU. OH, JULIO. YES. YES. YEAH. JULIO JULIO RETIRED LAST WEEK AND WE HAD A NICE LUNCH FOR HIM. AND YOU KNOW, SAYING GOODBYE IS TOUGH. AND THEY'RE GOING TO HAVE ONE FOR ME TOO ON TUESDAY. AND YOU KNOW TAZ WAS THERE WITH HIM. AND TAZ AND JULIO ARE A PAIR. YOU KNOW THEY'RE THEY'RE LIKE THE ODD COUPLE. NOBODY KNOWS WHAT THE ODD COUPLE IS. BUT BACK IN THE 70S, THERE WAS THIS TV SHOW ABOUT A GRUMPY GUY AND A HAPPY GUY. AND, YOU KNOW, AND THEY REMIND ME OF THE ODD COUPLE AND JULIO. WELL, ACTUALLY, TAZ SHARED TO JULIO THAT HE CALLS HIM HIS BLUE EYES. YOU KNOW, THAT'S HE'S LIKE HIS WORK WIFE OR WHATEVER. AND EVERYBODY WAS KIND OF TEASING, BUT I, YOU UNDERSTAND, WE SPEND MORE TIME WITH OUR COWORKERS THAN WE DO WITH OUR FAMILIES, YOU KNOW? SO BUT TO JUST SEE THOSE RELATIONSHIPS, IT'S TOUCHING BECAUSE THEY'VE WORKED TOGETHER FOR SO MANY YEARS. AND, YOU KNOW, WHEN I COME IN AND I'VE TALKED TO THE STAFF, YOU KNOW, WE'VE HAD OUR QUARTERLY LUNCHEONS AND THINGS LIKE THAT, AND I TALK ABOUT US BEING FAMILY. WE ARE WE ARE FAMILY.

AND, YOU KNOW, THERE WAS THERE WAS A TOUGH TIME AT THE BEGINNING. BUT ONE OF THE I TALKED ABOUT THIS TO YOU GUYS BENT ME. YOU FLEXED ME, YOU PULLED ME, YOU PUSHED ME. YOU

[02:50:03]

AND IF WE DO, THEN WE'LL LOOK FORWARD TO THAT CHAPTER TOO. SO I WANT TO THANK YOU ALL VERY MUCH. THANK YOU, THANK YOU. AND THANK YOU TO JULIO'S 27 YEARS, THE CITY OF COACHELLA. YES.

* This transcript was compiled from uncorrected Closed Captioning.