Nov 15, 2021 City Council

ARE THERE ANY CLOSED SESSION ANNOUNCEMENTS WE HELD THOUGH? CLOSED SESSION.

UH, WE NOW HAVE A PROCLAMATION AND PRESENTATIONS.

[1. PRESENTATION OF CERTIFICATES OF RECOGNITION TO TEACHERS OF THE YEAR AT THE LA HABRA CITY SCHOOL DISTRICT AND THE LOWELL JOINT UNIFIED SCHOOL DISTRICT]

THE FIRST PRESENTATION IS CERTIFICATE OF RECOGNITION TO THE TEACHERS OF THE YEAR OF THE LA HARBOR CITY SCHOOL DISTRICT AND THE LOCAL UNIFIED SCHOOL DISTRICT.

UM, I BELIEVE THERE WILL BE A, UM, LET'S SEE, IS THERE GOING TO BE A REPRESENTATIVE FROM THE DISTRICT REPRESENTATIVE TO THE PODIUM TO PRESENT THE CITY OF LA HARBOR AND CERTIFICATE OF RECOGNITION, UM, TO THE TEACHER OF THE YEAR BECKY CHAMPION FOR 2022 AND LATRINA AYERS FOR 2021.

SHE IS A CLASSIFIED EMPLOYEE OF THE YEAR.

OH, SHE'S CLASSIFIED EMPLOYEE OF THE YEAR.

UH, TINA SERONO FOR 2020 AND BEVERLY SHAMBECK FOR 2021 ARE UNFORTUNATELY NOT ABLE TO ATTEND THIS MEETINGS TONIGHT.

IS THAT CORRECT? CORRECT.

ALL RIGHT.

SO, UM, OUR SUPERINTENDENT OF LA HARBOR CITY CITY SCHOOL DISTRICT, JOANNE CULVERHOUSE IS HERE.

ALISON BENTO, LA HARBOR CITY SCHOOL DISTRICT, JIM KOONS, SUPERINTENDENT OF LOWELL JOINT SCHOOL DISTRICT, SHERRY MACDONALD ASSISTANT SUPERINTENDENT OF EDUCATION SERVICES AND RHONDA OVERBEY, DIRECTOR OF EDUCATION SERVICES, MAD CHECK ROOM PRINCIPAL, WHITNEY TECH, EX VICE PRINCIPAL, MARY KATE ELMQUIST PRINCIPAL AND KRISTA THEN WOO, WOO.

MOON, PRINCIPAL WALK, MOVE.

SO, UM, IF, UH, DR.

CLOVER HOUSE WILL PLEASE PROCEED NOSA AND MEMBERS OF THE CITY COUNCIL, IT IS MY HONOR AND PRIVILEGE TO INTRODUCE OUR CLASSIFIED EMPLOYEES AND OUR CERTIFICATE EMPLOYEES.

UNFORTUNATELY, APRIL PORTERFIELD AND ALISON GETMAN COULD NOT BE HERE.

AND ALSO ALISON CABEBE COULD NOT BE HERE.

IT LOOKS LIKE IN LAHABRA IF YOUR NAME IS ALISON, YOU GET AN AWARD, BUT THAT'S NOT THE CASE.

UM, SO WE ARE HERE RIGHT NOW WITH ALISON BENTO.

SO THAT'S NOT WHY THAT IS NOT WHY SHE'S GETTING AN AWARD, BUT I'M GOING TO JUST HAVE ALISON INTRODUCE HERSELF TO YOU AND GIVE HER JUST A QUICK LITTLE BACKGROUND AND I WILL PRESENT HER WITH HER CERTIFICATE AND HER FLOWERS.

THANK YOU, ALISON, THANK YOU, COUNCIL MEMBERS FOR HAVING ME HERE TONIGHT.

UM, I'VE BEEN TEACHING IN THE HARBOR SINCE 2000 AND, UM, I'VE TAUGHT A VARIETY OF GRADES, PRETTY MUCH ALMOST EVERYTHING.

UM, I TEACH SIXTH GRADE NOW OVER AT SIERRA VISTA ELEMENTARY AND I'M LOVING IT.

WE'RE HAVING A GREAT TIME HAVING THE KIDS BACK AND IT'S BEEN AN HONOR TO WORK WITH DR.

COLBERT HOUSE.

SHE PROVIDES US WITH SO MANY OPPORTUNITIES AND I'M VERY HAPPY TO BE HERE.

THANK YOU, MAYOR ESPINOSA AND BOARD, UH, COUNSEL, WE'RE HONORED TO BE HERE.

[00:05:07]

NONE OF OUR STAFF ARE NAMED ALISON OR ALICE OR ALLIE OR ANY OF THOSE.

THERE ARE TWO FOLKS THAT COULD NOT BE HERE.

BEV SHINBECK, UH, OUR LIBRARIAN AND ALSO, UH, OUR SECOND STAFF MEMBER, TINA SERRANO, WHO IS FROM RANCHO.

THEY COULD NOT BE HERE, BUT OUR TWO TEACHERS OF THE YEAR ARE HERE.

SO I'D LIKE TO ASK THEM TO COME UP.

LORRAINA EHRS AND BECKY CHAMPION TEACHERS ARE, THEY LOVE TO TEACH, BUT THEY HATE TO BE IN FRONT OF ADULTS.

SO THIS IS REALLY TOUGH AND CHALLENGING.

THE FIRST YOUNG LADY IS OUR TEACHER ON SPECIAL ASSIGNMENT FOR TECHNOLOGY AND INSTRUCTION.

I, REBECCA AIRS, SHE'S TAUGHT AT MULTIPLE SCHOOLS AND I WANT TO LET HER INTRODUCE HERSELF.

SHE CAN TELL YOU ALL THE SCHOOLS.

I THINK SHE'S BEEN AT ALL SIX OF THEM.

SO WE'RE VERY HONORED TO INTRODUCE, UH, REBECCA CHAMPION.

I THANK YOU, COUNCIL MEMBERS.

IT'S EXCELLENT TO BE HERE TONIGHT WITH YOU.

UH, MY NAME IS REBECCA CHAMPION.

I HAVE WORKED AT THE LITTLE JOINT SCHOOL DISTRICT SINCE 1999.

UM, I'VE TAUGHT AT EVERY SCHOOL SITE, UM, GRADES K THROUGH EIGHT AND I AM NOW FOR THE PAST FIVE YEARS.

I'VE BEEN THE TEACHER ON SPECIAL ASSIGNMENT IN TECHNOLOGY.

IT WAS A PRETTY, UM, ADVENTUROUS YEAR FOR THE PAST COUPLE OF YEARS FOR ME.

AND LUCKILY THEY GAVE ME A COUPLE OF NEW PTOSIS TO HELP ME OUT.

THANKS TO COVID.

BUT UH, THANK YOU FOR THE HONOR AS WELL.

THIS NEXT YOUNG LADY TEACHES SECOND GRADE AT ELIDA.

UM, AND I THINK YOU'VE BEEN AT LEE THE WHOLE TIME.

CORRECT? THAT WAS WHAT I WAS GOING TO SAY.

WELL YOU GOT TO SAY MORE THAN THAT THEN ALL YOU'RE DONE.

NICE TRY.

SO LORRAINA ERRORS.

YES, I AM LAMINA HEIRS AND I'VE BEEN AT THE LOWELL JOINT SCHOOL DISTRICT AND SPECIFICALLY AT ALITA FOR IT'S MY 35TH YEAR AND MY 35TH YEAR.

AND, UM, IT WAS A GREAT HONOR WHEN I WAS, UM, RECOGNIZED AS TEACHER OF THE YEAR.

IT WAS VERY MUCH A SUPERVISOR, ESPECIALLY IT WAS RIGHT WHEN WE WENT INTO COVID.

UM, BUT I AM VERY HAPPY TO BE BACK AT, I LOVE WORKING AT ALITA AND THE LITTLE JOINT DISTRICT.

THANK YOU COUNCIL VERY MUCH FOR HONORING OUR STAFF TONIGHT.

I WOULD LIKE NEXT TO, UH, INVITE THE DIRECTOR OF COMMUNITY SERVICE.

CONGRATULATIONS TO ALL OF YOU.

WELL DESERVED, MUCH APPRECIATED BY OUR COMMUNITY.

[2. COMMUNITY SERVICES DEPARTMENT UPDATE PRESENTATION]

UM, KELLY, I BELIEVE IT IS.

UH, I JUST SAW YOUR LAST NAME.

SO I'M ASSUMING IT'S KELLY TO THE PODIUM TO GIVE A COMMUNITY SERVICE DEPARTMENT UPDATE PRESENTATION.

GOOD EVENING, MADAM MAYOR MEMBERS OF THE CITY COUNCIL.

THANK YOU FOR ALLOWING ME TO GIVE YOU THIS UPDATE ON THE COMMUNITY SERVICES DEPARTMENT.

WE DECIDED TO GIVE YOU AN UPDATE BASICALLY FROM COVID ON SO MARCH OF 2020 UNTIL NOW.

SO THE COMMUNITY SERVICES DEPARTMENT, UH, IS COMPRISED OF SEVEN DISTINCT DIVISIONS.

WE HAVE ADMINISTRATION, CHILD DEVELOPMENT, CHILDREN'S MUSEUM EMPLOYMENT AND TRAINING FACILITY, MAINTENANCE, RECREATION, AND SPECIAL EVENTS AND SENIOR AND SOCIAL SERVICES.

EACH DIVISION HAS THEIR OWN UNIQUE SET OF RESPONSIBILITIES AND POPULATIONS THAT WE SERVE.

AND, UM, SO I THOUGHT WE WOULD TALK A LITTLE BIT ABOUT PROBABLY THE MOST OVERUSED WORD IN 2021.

THE WORD PIVOT USED IN A VERB FORMAT IT'S TIP TO MODIFY WHILE RETAINING SOME CONTINUITY OF A PREVIOUS VERSION OR TO CHANGE DIRECTION AND CHANGE THE WAY IN WHICH SOMETHING IS BEING DONE.

AND THAT'S EXACTLY WHAT OUR DEPARTMENT AND EVERY SINGLE ONE OF OUR DIVISIONS DID IN 2020 AND 2021.

I THOUGHT I'D TALK A LITTLE BIT ABOUT OUR DEPARTMENT'S RESPONSE TO COVID.

I KNOW THAT'S A PICTURE OF OUR FORMER RETIRED POLICE, CHIEF JERRY PRICE, BUT ONE OF THE THINGS OUR DEPARTMENT DID WAS WE IDENTIFIED WHAT WAS NEEDED BETWEEN OUR RESIDENTS, OUR BUSINESSES, OUR STUDENTS, OUR EMPLOYEES.

AND ONE OF THE THINGS WE DID WAS WE WENT OUT TO EVERY BUSINESS THAT WE COULD.

WE TOOK VOLUNTEERS AND WE MADE LITTLE BAGS WITH HAND SANITIZERS AND FLYERS AND INFORMATION TO ALL THE BUSINESSES THAT WE COULD.

WE HIT 200 AND SOMETHING BUSINESSES.

I KNOW IT WASN'T ALL OF THEM, BUT WE HIT AS MANY AS WE COULD.

AND THE POLICE CHIEF AND SOME OTHER PEOPLE WITHIN THE CITY WERE ABLE TO HELP US.

WE ALSO

[00:10:01]

WORKED WITH THE FAMILY RESOURCE CENTER ON RE RENT AND UTILITY ASSISTANCE.

WE DID WELFARE CHECKS ON SENIOR CITIZENS WHEN 9 1 1 WAS GETTING INUNDATED WITH CALLS FROM SENIOR CITIZENS THAT WERE TOO SCARED TO GO TO THE MARKET OR THAT THEY DIDN'T KNOW WHAT WAS GOING ON.

WE WOULD GO AND KNOCK ON THEIR DOORS TO SEE WHAT THEY WERE DOING.

WE DEVELOPED A CITYWIDE NEWSLETTER THAT WENT OUT TO ALL OF OUR RESIDENTS AND FOR OUR EMPLOYEES, WE WERE ABLE TO START.

UM, LET'S SEE, WE SHUT DOWN MARCH 16TH, WHICH WAS THAT MONDAY OR MARCH 13TH.

THE FRIDAY ON THAT MONDAY, WE OPENED UP A PROGRAM CALLED CHILDCARE FOR CRITICAL EMPLOYEES, CHILDREN, AND THAT ALLOWED OUR POLICE OFFICERS AND PEOPLE FROM THE HOSPITAL AT ST.

JUDE THAT WE WORK WITH WHOSE CHILDCARE WAS SHUT DOWN.

THEY WERE ABLE TO STILL GO TO WORK BECAUSE WE PROVIDED CHILDCARE FOR THEM.

RECREATION ALSO STARTED A SANITIZING CREW.

SO WHEN THERE WAS EXPOSURES, THEY WOULD COME OVER HERE AND WE WOULD SANITIZE.

AND THEN THEY WOULD SANITIZE THE REGULAR TOUCH SYSTEMS WHEN WE THOUGHT TOUCH WAS CAUSING COVID, UM, EVERY HOUR ON THE HOUR.

AND, UM, WE ALSO DID A LOT OF RESEARCH AND MAINTAINED ALL OF OUR PERSONAL PROTECTIVE EQUIPMENT STOCK.

SO FOR OUR SENIORS, AS YOU KNOW, WE DID A LOT OF CHANGES WITH OUR MEALS AND OUR DELIVERY.

WE ENDED UP GOING, UM, FROM A CONGREGATE SETTING TO A MEALS ON WHEELS, EXCLUSIVE SETTING.

AND WE ALSO TRIPLED THE NUMBERS OF MEALS THAT WE WERE SERVING.

OF COURSE WE JUST ASSISTED.

IT WAS THE MEALS ON WHEELS, LAHABRA AND THE MEALS ON WHEELS.

UM, ORANGE COUNTY THAT PROVIDE THE SERVICE.

WE ALSO ASSISTED, UM, AT THE, UH, THE GARY CENTER AND THE CRCC FOR THEIR FOOD GIVING PROGRAMS. WE DID OUR PARK AT MARKET BECAME A DRIVE-THROUGH SERVICE.

SO WE, UH, FED AS MANY PEOPLE AS HE COULD TO KEEP OUR FOOD INSECURITY AT A MINIMUM.

AND AS YOU GUYS PROBABLY ALL KNOW, WE ALSO HOSTED AS MANY VACCINATION AS POSSIBLE.

WE HAD 16 AT THE COMMUNITY CENTER ALONE.

WE WERE RESPONSIBLE FOR SIGNING UP OR ADMINISTERING SHOTS TO OUR 5,000 SHOTS, ALMOST 3000 PEOPLE.

UM, AS YOU KNOW, TESTING IS GOING ON AT THE COMMUNITY CENTER RIGHT NOW, WE CONTINUE TO TRY TO STAY UP ON EVERY FACET OF COVID AND WHAT WE CAN DO.

SO I PUT A COUPLE OF PICTURES UP THERE.

WE HAVE SOME PICTURES, EVERY SINGLE EMPLOYEE, BECAUSE AS YOU KNOW, THE CITY OF LA BARBARA, WE DECIDED THAT IT WAS IMPORTANT TO KEEP OUR CITY HALL OPEN.

SO TO DO THAT, WE WANTED OUR STAFF TO BE AS SAFE AS POSSIBLE.

WE PUT TOGETHER THOSE BAGS.

SO EVERY STAFF MEMBER IN THE CITY THAT WANTED ONE GOT ONE OF THOSE BAGS THAT HAD, UM, PAPER TOWELS AND MASKS AND GLOVES, UH, BLEACH WAS SO HARD TO FIND OR ANY KIND OF CHEMICAL SOLUTIONS.

SO WE MADE OUR OWN, WE WORKED WITH THE LOCAL PHARMACY TO TRY TO DO THAT.

WE HAD FOOD GIVING PROGRAMS AND BELIEVE IT OR NOT, THE YOUTH SPORTS ORGANIZATIONS, THAT WAS ONE OF OUR MOST DIFFICULT TASKS WAS TO TRY TO KEEP THEM EITHER SAFE ON THE FIELD OR NOT ALLOWED ON OUR FIELDS WHEN COVID WAS AT ITS HIGH.

THE PICTURE ON THE BOTTOM WAS ACTUALLY THE COUNCIL MEETING.

WHILE YOU GUYS WERE IN HERE DOING A LARGE DISCUSSION, SOMEBODY HAD TO MAKE THE PUBLIC SAFE OUTSIDE AND KEEP THEM SIX FEET AWAY FROM EACH OTHER.

SO THAT WAS, THAT'S WHAT THE BOTTOM PICTURE IS.

SO I WANT TO TALK A LITTLE BIT ABOUT EACH DIVISION AND I'LL GO A LITTLE FAST.

I KNOW THIS IS LONG, BUT THE COMMUNITY SERVICES, OUR ADMINISTRATION DIVISION, WE ARE ALSO RESPONSIBLE FOR GRAFFITI IN THIS CITY.

AND ON AVERAGE, WE TAKE OFF ABOUT 20,000 SQUARE FEET OF GRAFFITI A MONTH.

WE HAVE ONE FULL-TIME PERSON AND ONE PART-TIME PERSON DOING THAT.

WE ALSO COORDINATE ALL FACILITY RENTALS AND OUR LEASES WITH THE HBC OR THE BOYS AND GIRLS CLUB, UH, THE ART ASSOCIATION, THE WOMEN'S CLUB, THE BOY SCOUTS, ALL THOSE LEASES COME THROUGH THE ADMINISTRATION DIVISION.

WE, WE DO A LOT OF OTHER PROGRAMS, INCLUDING THE PAVER PROGRAM OUTSIDE.

SO IF YOU, WHEN YOU GO OUTSIDE, YOU SEE THE PAVERS.

WE ALSO COORDINATE THAT PROGRAM.

ONE OF THE BEST THINGS I THINK WE DID LAST YEAR WAS WE RFP.

AND WE WERE ABLE TO SECURE THE PHANTOM PROJECTS, THEATER GROUP THAT WE'LL BE OPENING UP REAL SOON.

NOW IN OUR DEPOT THEATER, OUR CHILD DEVELOPMENT PROGRAM, YOU KNOW, OUR PARENTS, THEY NEED CHILDCARE, RIGHT? SO WHEN THIS, WHEN THE STATE WAS SHUT DOWN, WE HAD TO SHUT DOWN.

BUT THE MOMENT THAT THEY ALLOWED US TO OPEN BACK UP, WE WERE ALLOWED TO, SO OUR, WE, WE, WE OPENED SO JUNE 1ST, LAST YEAR WE OPENED UP WHEN THE SCHOOL DISTRICTS WERE DOWN, WE STILL DID DISTANCE LEARNING FROM OUR CHILD DEVELOPMENT PROGRAM, AS WELL AS THE REC PROGRAM.

SO THAT WAY OUR PARENTS COULD GO TO WORK.

UM, WE ALSO ARE STILL WORKING ON OUR REORGANIZATION PLAN.

SO THE CHILD DEVELOPMENT PROGRAM IS WORKING TO ADDRESS ANY OF OUR DEFICIENCIES AND OUR EARLY DEVELOPMENT INDEX AND, UM, AND OUR LEARNING OR EARLY CHILDHOOD LEARNING PROGRAM.

UM, AS YOU GUYS HAVE ALL SEEN THE MURAL ON WHITTIER BOULEVARD AT OUR PRESCHOOL AT WOODY ON WHITTIER, WE HAD OUR PARENTS AND OUR KIDS AND EVERYBODY PARTICIPATE TO MAKE A LEARNING FRIENDLY ENVIRONMENT.

SO WE HAVE MURALS ALL THROUGHOUT THAT PLACE NOW.

AND, UM,

[00:15:01]

LET'S SEE THE ST.

JUDE IS FUNDING THAT FOR US.

AND THEY ALSO ARE FUNDING A NEW PLAYGROUND AREA THERE, WHICH HAS LEARNING CAPABILITIES WITHIN THE PLAY AREA.

CHILDREN'S MUSEUM.

NOW THAT'S A LITTLE TOUGH ONE BECAUSE OF COURSE WE COULDN'T LET PEOPLE IN FOR A VERY LONG TIME.

SO INDOOR MUSEUMS WERE ONE OF THE FIRST LAST THINGS TO OPEN UP.

SO WE WERE ABLE TO TRY TO BRING OUR MUSEUM OUTDOORS.

SO WE DID A LOT OF PROGRAMS OUTDOORS.

AND, UM, SO OUR, OUR MEMBERS COULD AT LEAST HAVE SOMETHING TO DO.

WE DID, UM, A MUSEUM PLAY PASS, WHERE THEY WOULD COME AND THEY WOULD DO ARTS AND CRAFTS.

WE WOULD BRING THE DINOSAURS OUT.

WE WOULD DO A LOT OF THINGS WITH THEM, BUT IN THE MEANTIME, THEY WERE ALSO DOING INDOORS.

AS SOON AS THE GOVERNOR ALLOWED, OR THE STATE ALLOWED US TO OPEN UP MUSEUMS, THEY DECIDED TO OPEN UP TO, AND WE THEN DID A TWO HOUR BLOCK, AND THEN WE WOULD SHUT DOWN AND WE CLEANED FOR AN HOUR, AND THEN WE'D OPEN UP A NEW, ANOTHER TWO HOUR BLOCK.

SO WE WANTED TO MAKE SURE THAT WE GAVE THE HARBOR RESIDENTS AS MANY OPPORTUNITIES AS THEY COULD TO ENJOY OUR MUSEUM.

WHILE WE WERE DOING THAT, WE ALSO COMPLETED THE INDOOR RAMP, WHICH WAS THE OLD TRAIN ROOM.

WE TURNED THAT NOW INTO A RAMP THAT IS BOTH WHEELCHAIR AND STROLLER FRIENDLY.

WE CHANGED OUR, UM, PRESCHOOL PLAY PARK INTO, UM, OUR FRIENDLY FARM OR CENTENNIAL FARM.

AND, UM, SO WE DID A LOT OF, UH, NICE PROGRAMS WITHIN THE CHILDREN'S MUSEUM, ALSO EMPLOYMENT AND TRAINING.

AND THAT'S A TOUGH ONE TOO, BECAUSE, UM, AS YOU GUYS KNOW, WE WROTE OUR GRANT FOR LAST YEAR.

WE EXPECTED TO GET NORTH ORANGE COUNTY, LIKE WE NORMALLY HAVE FOR 30 SOMETHING YEARS.

AND THE COUNTY SAID, YOU GUYS ARE DOING SUCH A GREAT JOB.

WE WANT YOU TO DO THE ENTIRE COUNTY.

AND WE SAID, OH, THAT'S A LOT.

SO WE WENT FROM TRYING TO SERVE 180 STUDENTS A YEAR TO 600 STUDENTS ALL ACROSS THE COUNTY.

SO WE'VE OPENED UP OFFICES NOW, NOT JUST IN THE HARBOR, BUT WE'VE OPENED UP THE OFFICES IN GARDEN GROVE, ORANGE, SANTA ANA.

AND NOW JUST MOST RECENTLY, LOS ALAMITOS, WE'RE WORKING ON A SOUTH COUNTY LOCATION, BUT THAT'S, THE COUNTY HAS TO APPROVE IT FIRST.

SO WITH OUR YOUTH EMPLOYMENT PROGRAM, WE ALSO ALL WORK WITH ON THE JOB TRAINING.

WE BRING STUDENTS IN FOR CLASSES, WHETHER OR NOT IT'S A, UM, LIKE, UH, FROM THE CLASSES, SORRY, YELL AT TRUCK DRIVING CLASS, THEY OFFERED US, OR YOU CAN GO WORK AT WHEN YOU CALL 2 1, 1.

SO IT'S CLASSES LIKE THAT THAT COULD TEACH STUDENTS HOW TO HAVE A CAREER FACILITY, MAINTENANCE.

WELL FACILITY MENTORS IS REALLY TOUGH.

YOU KNOW, IT'S A THREE MAN CREW AND THERE ARE 17 BUILDINGS AND WE COUNTED OVER 50 RESTROOMS THAT THEY HAVE TO SERVICE.

ON AVERAGE, THEY CREATE A PORT TO 16 PLUMBING ISSUES AND 22 AIR CONDITIONING OR HEATING ISSUES A MONTH.

SO IT'S A LOT OF WORK FOR THEM.

I PUT SOME PICTURES UP THERE.

CAUSE AS YOU KNOW, THE, WE REPLACED THE, UM, UH, JACK INSIDE OUR CITY HALL ELEVATOR.

UM, IT WAS A PRETTY EXTENSIVE PROGRAM, BUT I ALSO PUT SOME PICTURES UP THERE TO SHOW YOU WHAT WE'RE DEALING WITH.

ONE OF THE THINGS WE ARE DEALING WITH ARE ANTIQUATED BUILDINGS.

AND ALTHOUGH THEY'VE BEEN TAKEN CARE OF FOR QUITE SOME TIME, WE SET ASIDE LAST YEAR, A PLAN TO PUT IN PLACE OUR DEFERRED CAPITAL MAINTENANCE PROGRAM.

AND JUST ON FIRST LOOK, IT'S $9 MILLION IN, UM, UPGRADES THAT WE'LL NEED EVENTUALLY, NOT NOW, BUT THAT INCLUDES ROOFS AND HVAC SYSTEMS AND PLUMBING AND EVERYTHING ELSE, CARPET AND YOU KNOW, THINGS THAT NEED TO BE REPLACED.

SO, UM, WE'RE WORKING ON THAT PROGRAM.

THEY ALSO, UM, INSTALLED WATER BOTTLE FILLING STATIONS AT THE COMMUNITY CENTER.

SO TECHNICALLY SINCE COVID HAPPENED, THERE'S A LITTLE TICKER ON THERE AND IT SHOWS THAT WE'VE SAVED OVER 5,000 BOTTLES SO FAR JUST BY HAVING THAT WATER BOTTLE FILLING STATION.

WE ALSO PUT ONE INSIDE THE POLICE DEPARTMENT AND WE HOPE TO HAVE ONE AT CITY HALL, SOON RECREATION.

WELL, YOU GUYS KNOW WHAT RECREATION DOES, BUT ONE OF THE THINGS WE DID NEW THIS YEAR IS WE HAD A SUMMER ENRICHMENT PROGRAM WHERE THE SCHOOL DISTRICT CAME TO US AND SAID, HEY, WHAT DO YOU THINK ABOUT PARTNERING WITH US? YOU COULD RUN OUR SUMMER SCHOOL ENRICHMENT PROGRAM FOR US.

SO WE SAID, YES, WE PLAN THE PROGRAM.

AND FOR THE FIRST YEAR IT WORKED OUT REAL WELL.

WE EXPECT TO HAVE A SECOND YEAR, BUT IN THAT WE WENT AND WE BROUGHT OUR, UM, SIGN LANGUAGE, TEACHERS, ARTS AND CRAFTS, TEACHERS, DANCE TEACHERS, AND THINGS LIKE THAT.

AND ENRICHMENT COURSES FOR ALL OF OUR ELEMENTARY SCHOOL STUDENTS.

WE ALSO, UM, UPGRADED A PLAYGROUND OVER HERE AT EL CENTRO.

YOU GUYS WERE A PART OF THAT WITH THE KABOOM.

WE WORKED WITH THE CAL STATE FULLERTON NURSES WHO THEIR INTERNSHIPS WERE NOT ALLOWED BECAUSE HARDLY ANYBODY ELSE WAS IN PERSON.

SO WE TOOK ON 120 NURSING STUDENTS DURING THE SUMMER TO PROVIDE OPPORTUNITIES FOR THEM TO GET THEIR INTERNSHIPS, BUT ALSO FOR US TO DO PROGRAMS SUCH AS, UM, OUR ENRICHMENT PROGRAM, ONE OF THE MOST EXCITING THINGS IN RECREATION WAS THE SPLASH PADS.

YOU GUYS KNOW WE OPENED UP BOTH SPLASH PADS THIS YEAR.

AND ALTHOUGH IT WASN'T THAT EASY JUST TO LET PEOPLE IN, ESPECIALLY BECAUSE OF COVID, WE HAD TO DESIGN, UM, A REGISTRATION, UH, A SITE TO FIGURE OUT HOW TO, UM, TAKE REGISTRATION, HOW TO KEEP IT SAFE FOR EVERYBODY.

AND THEN AS THINGS WENT ON, WE HAD TO WORRY ABOUT SOME PEOPLE WERE SELLING, YOU KNOW,

[00:20:01]

ADMISSIONS, OH, I GOT MINE.

YOU DIDN'T GET ONE, YOU COULD BUY THIS ONE.

SO WE LOOKED AT THOSE THINGS.

SO IT WAS KIND OF A LEARNING EXPERIENCE FOR US.

AND WE CAN'T WAIT TO OPEN UP AGAIN NEXT YEAR, SOCIAL SERVICES.

UM, WE TALKED A LITTLE BIT ABOUT THAT ALREADY, OUR PARKING MARKET AND OUR SENIOR CITIZENS PROGRAMS. IT'S REALLY EXCITING, UM, WHAT WE'RE ABLE TO DO AND WHERE WE'RE GOING TO GO IN THE FUTURE.

OUR SOCIAL SERVICES PROGRAM IS RESPONSIBLE FOR ALL THE SENIORS AND AT-RISK PROGRAMMING AND CASE MANAGEMENT FOR ALL OF OUR SENIORS.

SO ESPECIALLY EVENTS YOU'VE BEEN TO A LOT.

WE TRY TO DO AS MANY AS WE COULD THIS YEAR.

WE ARE ONE OF THE ONLY CITIES WHO ACTUALLY DID AN EASTER EGG HUNT IN PERSON THIS YEAR.

LUCKILY, UM, WE WERE ABLE TO DESIGN BECAUSE WE HAVE SUCH A BEAUTIFUL LA BONITA PARK.

WE WERE ABLE TO SPREAD CHILDREN OUT ENOUGH THAT WE DID 30 AT A TIME, EVERY HALF HOUR.

SO THAT WAY THE KIDS GOT OUT LAST YEAR IN THE, UNDERNEATH THE SUN AND ON THE GRASS AND ACTUALLY PICKED UP EGGS THEMSELVES.

SO INSTEAD OF DOING A 600 KID EASTER EGG HUNT, WE DID EVERY 30 MINUTES, WE DID 30 FOR 10 STRAIGHT HOURS.

UM, AND WE ALSO HELP WITH THAT.

UH, A LOT OF OTHER PROGRAMS, YOU ALL WERE JUST AT THIS VETERANS DAY, A FESTIVAL OR VETERANS DAY CEREMONY, AS WELL AS OUR 4TH OF JULY PROGRAM WE HELPED WITH OR ORGANIZE THE LAHABRA HIGH SCHOOL FOOTBALL TEAM AND A LOT OF OTHER ACTIVITIES.

SO JUST SOME PICTURES OF SOME OF THE ACTIVITIES, THE EASTER EGG HUNT ON THE BOTTOM, RIGHT? 4TH OF JULY AT THE FRONT WE'VE HAD OVER 20, UM, RED CROSS BLOOD DRIVES.

NOW WE ALSO DID STILL DID OUR CHRISTMAS TREE OR NO CHRISTMAS TREES COMING UP.

CHRISTMAS, LIGHT DECORATIONS CONCERTS IN THE PARKS WERE AMAZING THIS YEAR.

UM, WE DID OUR VETERANS DAY, UH, LAST YEAR, UM, OUTSIDE HERE AT CITY HALL DID A LOT OF PROGRAMS. SO WHAT'S NEXT AS YOU KNOW, TAMALE FESTIVALS COMING UP DECEMBER 4TH IS A SATURDAY.

THIS YEAR, WE'RE 10:00 AM TO 10:00 PM, WHICH ALLOWS US TO HAVE A TREE LIGHTING CEREMONY.

THAT'LL BE PRETTY AMAZING.

UH, HOLIDAY WISHES IS ON DECEMBER 8TH, WE'VE PARTNERED WITH THE CHILDREN'S MUSEUM TO GIVE THEM A LITTLE BIT OF EXPOSURE AND TO GIVE OUR RESIDENTS OF LAHABRA AN OPPORTUNITY TO VISIT THE MUSEUM.

WE ALSO HAVE STARTED A CHRISTMAS CONCERT.

IT'S THE BEACH BOYS, CHRISTMAS MUSIC OVER AT THE MARKETPLACE ON DECEMBER 11TH ON THAT SATURDAY, OUR SOCIAL SERVICES ADDITIONS NEXT YEAR.

UM, AS YOU KNOW, YOU APPROVED LAST WEEK OR LAST COUNCIL MEETING, UM, UH, HOMELESS SERVICES LIAISON, WE ARE WORKING WITH THE COLLABORATIVE ON OUR FOOD GIVING.

UM, WE'RE BRINGING BACK OUR IN-PERSON CONGREGATE MEALS EVERY THURSDAY, STARTING NEXT WEEK.

UM, WE HAVE OUR BOXING CLUB AND GARY CENTER RENOVATIONS ALL, HOPEFULLY OUR ADULT EMPLOYMENT THROUGH CDBG.

WE HAVE A LOT OF PROGRAMS COMING.

AND LASTLY, UM, WE ARE WORKING WITH, UH, PUBLIC WORKS AND THE ENGINEERS ON ENHANCED SECURITY AT THE POLICE DEPARTMENT, WE WROTE AND WERE AWARDED A ROUTE TO PARKS, STATE PARKS GRANT FOR $12,000.

SO NEXT YEAR YOU'LL, WE'LL BE ABLE TO TAKE, UM, STUDENTS AND, UM, YOUNG ADULTS, BOTH TO THE BEACH AND TO A CAMPING TRIP OVERNIGHT FUNDED THROUGH THE CALIFORNIA STATE PARKS.

WE'RE LOOKING AT MAYBE EVEN TAKING OUR TAMALE FESTIVAL TO A THREE-DAY EVENT.

WE THINK THAT IF WE PUT A CARNIVAL WITH OUR, OUR TAMALE FESTIVAL, THAT IT MAY BE A, MAKE IT A LITTLE BIT EASIER FOR US TO COVER ALL THE COSTS BECAUSE ALTHOUGH SOME PEOPLE MAY THINK WE MAKE MONEY ON THE TAMALE FESTIVAL, YOU KNOW, THAT, UM, IT TAKES A LOT OF MONEY TO PUT ON AN EVENT.

SO WE'RE THINKING MAYBE WE'LL DO THAT.

UM, BUS STOP ART.

THAT'S REALLY EXCITING FOR US BECAUSE WE'RE HOPING TO TAKE ALL OF OUR BUS STOPS AND WORK WITH OUR LOCAL SCHOOLS TO, TO DECORATE THEM AND HAVE A CONTEST.

UM, OUR DEPOT THEATER IS OPENING UP THE HISTORICAL MUSEUM.

WE'RE HOPING TO GET THAT TOGETHER.

WE'RE PLAYING, REPLACING THE PLAYGROUND AT LA BONITA AND A WHOLE LOT OF OTHER PROGRAMS. SO WE'RE LOOKING FORWARD TO NEXT FISCAL YEAR.

UM, BUT WE'RE VERY, VERY PROUD OF WHAT WE'VE DONE THE LAST YEAR AND A HALF OR SO.

AND BEFORE I END, I WANTED TO MAKE SURE THAT I INTRODUCED A FEW OF THE PEOPLE THAT MADE IT HERE TONIGHT.

SO WE HAVE KIM IBERIAN.

SHE'S ONE OF OUR RECREATION MANAGERS AND AL RODRIGUEZ WHO RUNS OUR EMPLOYMENT AND TRAINING PROGRAM AND JOANNA PEREZ FROM OUR CHILD DEVELOPMENT PROGRAM.

SO EVERYBODY ELSE EVERYONE'S SO BUSY RIGHT NOW GETTING READY FOR TAMALE, BUT THEY DECIDED TO COME SUPPORT.

OH, AND MARIE LABIANCA ON OUR, UM, COMMUNITY SERVICES COMMISSION AS HERE TOO.

THAT'S IT? WOW.

I KNOW.

SORRY.

I DIDN'T TAKE A BREATH.

OH, NO, NO, NO.

I NEED 'EM AND THIS IS WHAT YOU GUYS DID WHILE WE WERE SHUT DOWN NOW.

I MEAN, IT'S LIKE, THIS IS WHAT WE DID.

IT WAS INCREDIBLE.

ALL THAT WAS ACCOMPLISHED.

I, UH, WE EVERY, I THINK THE PUBLIC HAD THE PERCEPTION THAT EVERYTHING WAS DOWN AND NOTHING WAS HAPPENING AND NO ACTIVITIES WERE TAKING PLACE, BUT CLEARLY THAT WASN'T THE CASE IN OUR COMMUNITY.

AND WE ARE JUST EXTREMELY PROUD OF ALL THE EMPLOYEES FOR ALL THE WORK THEY DID.

AND AS YOU SAID, EVEN THOUGH THE WORD HAS BEEN USED MANY, MANY, A TIMES, THE WAY YOU PIVOTED TO TRY TO, UH, TO, UH, TO, UM, COVER THE SERVICES THAT NEEDED TO BE COVERED THE ESSENTIAL SERVICES AND ALL THE OTHER THINGS.

BUT

[00:25:02]

I, YOU KNOW, I DON'T KNOW WHERE THEY GOT THE ENERGY OF EVEN THE VOLUNTEER OR, YOU KNOW, YOUR VOLUNTEERS, BUT IT JUST, IT, YOU GUYS ALL JUST CAME TOGETHER AND YOU MADE IT HAPPEN FOR THE COMMUNITY.

AND I ALWAYS TELL THE RESIDENT MEMBERS, YOU KNOW, WE HAVE A GREAT TEAM.

WE HAVE A GREAT TEAM ON OUR CITY STAFF.

AND, UM, I'M VERY PROUD OF THEM.

VERY, VERY PROUD OF THEM.

UM, IS THERE ANYTHING THAT THE REST OF THE COUNCIL WOULD LIKE TO SAY, THANK YOU.

UH, WE WILL PROCEED TO THE CONSENT CALENDAR.

THANK YOU SO MUCH.

AND NOW WE WILL PROCEED TO PUBLIC COMMENTS.

THE GENERAL PUBLIC COMMENTS SHALL BE RECEIVED AT THE BEGINNING OF THE GOVERNING BODY MEETING AND LIMITED TO THREE MINUTES PER INDIVIDUAL WITH A TOTAL TIME LIMIT OF 30 MINUTES FOR ALL PUBLIC COMMENTS, UNLESS OTHERWISE MODIFIED BY THE MAYOR OR CHAIR.

SPEAKING TIME MAY NOT BE GRANTED AND OUR LOAN TO ANOTHER INDIVIDUAL FOR PURPOSES OF EXTENDING AVAILABLE.

SPEAKING TIME, AND COMMENTS MUST BE KEPT BRIEF NON-REPETITIVE AND PROFESSIONAL IN NATURE.

THE GENERAL PUBLIC COMMENT PORTION OF THIS MEETING ALLOWS THE PUBLIC TO ADDRESS ANY ITEM OF CITY BUSINESS, NOT APPEARING ON THE SCHEDULED AGENDA PER GOVERNMENT CODE SECTION 5 49, 5 4 0.38.

SUCH COMMON SHALL NOT BE RESPONDED TO BY THE GOVERNING BODY DURING THIS MEETING.

IS THERE ANYONE WISHING TO SPEAK DURING THIS PORTION OF THE MEETING? IF SO, PLEASE GO TO THE PODIUM.

AND IF YOU WOULD PROVIDE US YOUR NAME AND YOUR ADDRESS, SEE NONE.

[ CONSENT CALENDAR: All matters on Consent Calendar are considered to be routine and will be enacted by one motion unless a Councilmember, City staff member, or member of the audience requests separate action or removal of an item. Removed items will be considered following the Consent Calendar portion of this agenda. Public comment shall be limited to three (3) minutes per individual, with a total time limit of 30 minutes per item that has been removed for separate discussion, unless otherwise modified by the Mayor. Speaking time may not be granted and/or loaned to another individual for purposes of extending available speaking time, and comments must be kept brief, non-repetitive, and professional in nature. ]

ALL METTA CASSETTE CALENDAR ARE CONSIDERED TO BE ROUTINE AND WILL BE ENACTED BY ONE MOTION LIST OF COUNCIL MEMBERS, CITY STAFF MEMBER, OR A MEMBER OF AUDIENCE REQUEST SEPARATE ACTION OR REMOVAL OF AN ITEM REMOVED ITEMS WILL BE CONSIDERED FOLLOWING THE CONSENT CALENDAR PORTION OF THIS AGENDA.

PUBLIC COMMENT SHALL BE LIMITED TO THREE MINUTES PER INDIVIDUAL WITH A TOTAL TIME LIMIT OF 30 MINUTES PER ITEM THAT HAS BEEN REMOVED FOR SEPARATE DISCUSSION, UNLESS OTHERWISE MODIFIED BY THE MAYOR.

SPEAKING TIME MAY NOT BE GRANTED AND OR LOAN TO ANOTHER INDIVIDUAL FOR PURPOSES OF EXTENDING AVAILABLE.

SPEAKING TIME, AND COMMENTS MUST BE KEPT BRIEF, NON REPETITIVE AND PROFESSIONAL IN THE NATURE THAT CONSENT CALENDAR APPEARS ON PAGES TWO THROUGH FOUR ON THE AUDIENCE AGENDA ITEMS ONE THROUGH TWO.

ARE THERE ANY ITEMS THAT STAFF WOULD WISH TO MODE IT'S ITEMS ONE THROUGH 12? I'M SORRY.

YES.

ARE THERE ANY ITEMS THAT, UH, THE STAFF WOULD WISH REMOVED? NO MATTER MAYOR, ARE THERE ANY ITEMS THAT THE COUNCIL WOULD WISH REMOVED? I WOULD LIKE TO REMOVE ITEM NUMBER FOUR AND I'D LIKE TO RECORD AND A NO VOTE ON ITEM NUMBER SEVEN.

YOU WOULD LIKE TO PULL NUMBER FOUR AND RECORD A NOVO ON ITEM SEVEN.

ARE THERE ANY EITHER ITEMS THAT COUNTABLE WISH REMOVED? IS THERE ANY AUDIENCE, ANY AN ITEM THAT THE AUDIENCE WOULD WISH REMOVED? UH, THEN I WILL CALL FOR, UM, ACTION WITH THE EXCEPTION OF ITEM FOUR, WHICH WAS, UM, REMOVED AND RECORDING.

NO VOTE BY COUNCIL MEMBERS, SHAW ON ITEM SEVEN, MADAM MAYOR.

I'D LIKE TO MAKE A MOTION TO APPROVE THE BALANCE, THE CONSENT CALENDAR, NOTING, UH, ITEM FOUR, BEING PULLED AND A NO-VOTE FROM A COUNCIL.

MARSHAWN ITEM, NUMBER SEVEN.

IS THERE A SECOND? OH SECOND WITH THE COUNCIL, PLEASE VOTE MOTION PASSED FIVE, ZERO.

[ CONSENT CALENDAR ITEMS REMOVED FOR SEPARATE DISCUSSION:]

ALL RIGHT.

UH, THEN WE WILL GO BACK TO ITEM FOUR, WHICH IS TO APPROVE THE ADOPTION OF FEDERAL TRANSPORTATION IMPROVEMENT, PROJECT APPROACH PROJECTS.

IS THERE A REPORT YOU'D WISH TO HAVE WE HAVE A REPORT? I THINK MICHAEL WANTS, SIR.

UH HUH.

ALL RIGHT.

GOOD EVENING.

MAYOR ESPINOSA, FELLOW CITY COUNCIL MEMBERS.

MY NAME IS MICHAEL PLOTNIK AND I'M THE CITY TRAFFIC MANAGER.

STAFF PRESENTS TO YOU A REQUEST FOR APPROVAL AND ADOPTION OF A RESOLUTION TO ENSURE THE CITY OF LA HOMBRE CONTINUES TO ALLOCATE RESOURCES FOR FEDERAL PROJECTS, WHICH HAD ALREADY PREVIOUSLY BEEN APPROVED.

THE CITY OF LA HABRA CURRENTLY HAS TWO REGIONAL PROJECTS, WHICH UTILIZE FEDERAL FUNDING, BOTH OF WHICH ARE PART OF THE UNION PACIFIC RAIL LINE BIKEWAY PROJECT.

SINCE THESE IN PRO THESE PROJECTS INVOLVE FEDERAL FUNDING AND ARE NOT YET COMPLETED AT THIS TIME, THE PROJECTS AND THE FUNDS MUST BE CARRIED OVER THIS PROCESS IS DONE EVERY TWO YEARS AS PART OF THE REQUIREMENTS AND POLICIES TO KEEP THE FUNDING ACTIVE

[00:30:01]

THROUGH OTTA AND SCAG.

THEREFORE STAFF RECOMMENDS AT THIS TIME THAT THE CITY COUNCIL APPROVE AND ADOPT A RESOLUTION ENTITLED A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, WHICH CERTIFIES THAT THE CITY OF LA HOMBRE HAS THE RESOURCES TO FUND THE PROJECTS IN THE FEDERAL FISCAL YEAR 2022.

SO 2023 THROUGH 20 27, 20 28 FEDERAL TRANSPORTATION IMPROVEMENT PROGRAM AND AFFIRMS ITS COMMITMENT TO IMPLEMENT ALL PROJECTS IN THE PROGRAM.

AND I WILL TAKE ANY QUESTIONS THAT THE CITY COUNCIL OR ANYONE ELSE HAS AT THIS TIME.

I, I, I'M ASSUMING A COUNCIL WHERE MICHELLE HAS A QUESTION.

WELL, THANK YOU.

UM, THE OTHER CHALLENGE FOR US IS THAT UNTIL WE ACTUALLY ACQUIRE THAT EASEMENT, THE STATE HAS BEEN UNWILLING TO FUND THE MAJORITY PORTION OF THIS PROJECT, WHICH IS TO ACQUIRE THE EASEMENT AND BUILD THE TRACK OR TRAIL.

I JUST, UM, I'VE SERVED FOR THE LAST NINE YEARS ON THE ORANGE COUNTY TRANSPORTATION AUTHORITY BOARD OF DIRECTORS REPRESENTING NORTH ORANGE COUNTY HERE.

AND ONE OF OUR TOP PRIORITIES HAS BEEN CLOSING THE BIKE LOOP.

SO, UH, FOR THOSE WHO MAY NOT BE FAMILIAR, IT'S A PLAN 66 MILE LOOP, UH, THROUGH MUCH OF ORANGE COUNTY ALL THE WAY DOWN THE SANTA ANA RIVER TO THE BEACH AND CUT IT BACK OVER AND UP OUR WAY.

AND OUT OF THAT 66 MILES, WE HAVE IT'S 88% COMPLETE, UH, WE'RE MISSING A SEGMENT AND IT'S BASICALLY RIGHT HERE IN LA HORA AS THE MAJOR, MAJOR, UH, GAP.

AND WE'VE BEEN TRYING SO HARD TO FINALLY GET THIS DONE.

SO I, I COINCIDENTALLY HAD A BRIEFING LAST WEEK FROM THE OTTA STAFF ON WHERE WE'RE AT WITH THIS, AND THEN WE HAVE THIS AGENDA ITEM.

ANYWAYS.

I IT'S FUNNY, I THEY'D PREPARED SOME, SOME NOTES FOR ME, BUT, UM, I JUST WANT, I JUST THOUGHT IT WOULD BE FUN TO HEAR FROM THE CITY'S PERSPECTIVE, BUT, UH, SOME OF THE THINGS THAT THE OTTA STAFF HAD REPORTED TO ME, SO WE, UM, TO COMPLETE THE PROJECT WE NEED ABOUT 30 TO $40 MILLION FOR THE REMAINING, UH, RIGHT AWAY.

IT SOUNDS LIKE WE KIND OF HAVE A PINCH POINT, RIGHT AT LAMBERT NEAR, UM, THE IN AND OUT IS THAT RIGHT? IT'S UH, AND PALM AREA.

SO AS WE, AS THE TRAIL, THE UNION PACIFIC RAIL LINE COMES THAT WAY, WE KIND OF ARE RUNNING INTO A BIT OF A PINCH POINT, AND I KNOW WE'RE IN NEGOTIATIONS STILL WITH THE UNION PACIFIC.

AND I DON'T KNOW IF WE WANT TO GET THAT SPECIFIC ABOUT IT, BUT I GUESS I WOULD JUST REPORT HAVING HEARD FROM THE OTTA STAFF RECENTLY THAT, UM, THEY FEEL THAT THERE ARE, UM, GOOD DISCUSSIONS HAPPENING AND WE'RE FINALLY, UM, MAKING SOME HEADWAY.

I, WHAT DO YOU MEAN BY PINCH POINT INS INSTEAD OF IT BEING A 15 FOOT WIDE TRAIL, UM, BECAUSE OF THEY'D SOLD OFF SOME OF THE, UM, RIGHT AWAY THERE.

SO INSTEAD OF IT BEING 15 FEET, THEY ONLY WERE WILLING TO GIVE OVER FIVE FEET.

I GATHER, AND WE DIDN'T FEEL THAT THAT WAS WIDE ENOUGH TO HAVE BIKE LANES GOING IN OPPOSITE DIRECTIONS.

SO WE'RE, WE'RE TRYING TO GIVE, WE AT LEAST GET 10 FEET, 10 FEET WIDE EASEMENT.

AND SO THESE ARE KIND OF THE, WE DO WHAT KELLY SAYS.

WE PIVOT WE'LL PIVOT.

SO ARE THERE ANY OTHER QUESTIONS FROM THE COUNCIL? THANK YOU VERY MUCH.

I JUST WANT ACTUALLY, YEAH.

AND I KNOW COUNCIL MEMBER SHAW SAYS HE'S BEEN THERE NINE YEARS.

UH, HAVE WE, ARE WE GOING TO BE ABLE TO MAKE ANY MORE HEADWAY? I MEAN, ANYTIME SOON, I DON'T KNOW.

THAT'S SOMETHING THE COUNCIL MEMBER CAN SHED SOME LIGHT ON FOR THAT TIME.

HE'S BEEN ON A, THOSE NINE YEARS.

DO WE, ARE WE ANY CLOSER TO, UH, WELL LOG BEFORE ME, IT WAS SHAWN NELSON WAS THE CHAMPION OF THIS PROJECT.

HE WAS ON THE OCT BOARD, UH, FOR YEARS PRIOR TO ME.

AND IT WAS, THIS WAS KIND OF HIS, HIS MAIN CLOSET.

THE FUNDAMENTAL ISSUE IS WE'RE TAKING, WE'RE HAVING TO ACQUIRE PROPERTY FROM A RAILROAD THAT IT, I MEAN, THEY DON'T HAVE TO SELL IT TO US.

AND SO, UM, THEY'RE, YOU KNOW, THEY'VE BEEN COOPERATIVE.

I'M NOT GOING TO BASH THEM HERE IN PUBLIC, BUT THEY'RE, THEY'RE IN NO PARTICULAR HURRY TO SELL THEIR PROPERTY.

TO US.

THEY'VE BEEN THE RAILROADS ON HIS PROPERTIES FOR HUNDREDS, PROBABLY OVER A HUNDRED YEARS.

AND THEY ARE, THEY'RE PRETTY SLOW TO EVER DISPOSE OF, OF THEIR PROPERTY BECAUSE, YOU KNOW, THEY'RE, THEY'RE LOOKING LONGTERM, BUT, UM, YOU KNOW, I GUESS THE OLD SAYING IS EVERYTHING'S FOR SALE WITH ENOUGH MONEY, RIGHT? SO IF WE CAN GET THE 30 TO F YOU KNOW, THE, THE MONEY THAT WE'RE LOOKING AT, WE WOULD BE ABLE TO DO THAT.

THE CHALLENGE WE'VE CONSISTENTLY RUN INTO IS THIS SEGMENT OF TRAIL OR THE TRAIN LINE THAT COMES THROUGH LAHABRA IS AN ACTIVE TRAIN LINE.

PEOPLE THINK IT'S NOT ACTIVE, BUT AT LEAST ONCE A WEEK, WE HAVE A TRAIN THAT COMES THROUGH LAHABRA MAYBE TWICE A WEEK TO A BUSINESS AND BREATH.

SO THE, THE RAILROAD COMPANY IS, IS VERY CAUTIOUS ABOUT WANTING TO SELL OFF ANY OF ITS EASEMENT NEXT TO AN ACTIVE TRAIL LINE, A RAIL LINE SYSTEMS. SO WE'VE BEEN WORKING CLOSELY WITH OTTA STAFF, UH, THEIR LOBBYISTS, AND WITH THE RAILROAD TO GET THEM COMFORTABLE WITH THE DESIGN, TO ALLOW A TRAIL IN, IN CLOSE PROXIMITY, TO THEIR ACTIVE TRAIN TRACKS.

[00:35:01]

THEY WANT TO SEE THE CITY HAS OWNERSHIP OF THE EASEMENT FIRST, OR AT LEAST CONTRACTS FOR OWNERSHIP.

SO IT'S KIND OF THE CHICKEN OR THE EGG CAN UNDER A MORIN.

IF WE CAN'T GET HOLD OF THE EASEMENT, THE STATE'S NOT WILLING TO FUND IT, BUT IF WE DON'T GET THE FUNDING, WE CAN'T BUY THE EASEMENT.

SO WE'VE BEEN TRYING TO WORK THROUGH THOSE, THOSE CHALLENGES.

UM, WHITTIER RIGHT NOW, I BELIEVE IS BUILDING A SECTION OF TRAIL, THE WHITTIER CITY OF WHITTIER, UH, TRAIL HEAD.

THAT'S AN UNINCORPORATED WHITTIER AS A COUNTY PROJECT.

SO THEY'RE MAKING SOME PROGRESS.

AND ULTIMATELY OUR INTENT IS TO JOIN THAT SYSTEM AT THE COUNTY LINE AND THEN TAKE THIS TRAIL ALL THE WAY TO THE PORTION THAT'S BEEN CONSTRUCTED.

AND BRIA BRAND IS ALSO WORKING WITH US IN ABOUT A ONE MILE STRETCH OF ACTIVE LINE THAT GOES THROUGH BREAD, THAT THEY DO NOT HAVE, UM, UM, ACQUISITION OF YET THE ACTIVE LINE, JIM, IS THAT IF I'M NOT MISTAKEN ON ELECTRIC, IT GOES RIGHT THERE BY ELECTRIC GOES, RIGHT? YEAH.

IT GOES RIGHT PAST ELECTRODES IN TO GO TO SHEPHERD BROTHERS THAT I, NO, IT'S NOT SHEPHERD BROTHERS.

IT'S A, UM, A PLASTICS COMPANY, I BELIEVE IN BRIA, THEY DELIVER PRODUCT TO, YEAH, BUT IT'S NOT A NON LAPA COMPANY.

IT'S NOT IN THE HARBOR NOW, BUT THEY GO THROUGH THE CITY TWICE A WEEK.

YES, MADAM MAYOR, UH, ALSO TODAY, UH, THERE WAS SOME BLURB ABOUT, UH, FEDERAL FUNDING BEING CUT OFF FOR TRANSPORTATION FUNDS, UM, BECAUSE OF WHAT THE PRESIDENT BIDEN DEEMED A UNFAIR TREATMENT TO THE, UH, UM, I BELIEVE IT WAS THE PUBLIC EMPLOYEES, RETIREMENT SYSTEM UNION, YOU KNOW, ANYTHING ABOUT THAT? I HAVEN'T HEARD ANYTHING.

YEAH.

W WHAT LITTLE I READ TODAY ABOUT THAT IS EVIDENTLY A NUMBER OF YEARS AGO WHEN THE STATE OF CALIFORNIA, UH, I ASSUME WHAT THE ARTICLE WAS TALKING ABOUT PAST PEPPER PEPPER WAS A PENSION REFORM ACT THAT THE STATE PASSED THAT AFFECTED ALL NEW, UM, PUBLIC EMPLOYEES HIRED AFTER A CERTAIN DATE AND THE STATE.

ALL IT DOESN'T MATTER IF YOU HAVE A STATE EMPLOYEE, A LOCAL EMPLOYEE, IF YOU'RE PART OF THE PEPPER SYSTEM, I'M SORRY, IF YOU REPORTED THE CALPERS SYSTEM AND YOU WERE UNDER THE PEPPER PLAN, WHICH WAS A LOWER COST AND LOWER BENEFIT PENSION SYSTEM.

WELL, EVIDENTLY ACCORDING TO THIS ARTICLE I READ TODAY THAT COUNCIL MEMBER SIMONIAN MADE ME AWARE OF, UH, THE FEDERAL GOVERNMENT, I GUESS, HAS BEEN IN DISCUSSION WITH THE STATE ABOUT THE LEGALITY OF THE STATE, DOING THAT WITHOUT GOING THROUGH A MEET AND CONFER PROCESS WITH ALL THE DIFFERENT BARGAINING UNITS IN THE STATE ABOUT CHANGING THEIR PENSION SYSTEMS FOR NEW HIRES AND EVIDENTLY THEIR, UM, THEIR HAMMER IN THIS ARGUMENT IS TO WITHHOLD FEDERAL FUNDING FROM CALIFORNIA TO THE TUNE OF OVER $12 BILLION.

SO I'M NOT SURE HOW THIS WHOLE TRAIN RIDE ENDS RIGHT NOW.

IT DOESN'T LOOK TOO PROMISING, BUT I'M SURE THE STATE'S GOING TO HAVE SOMETHING TO SAY IN RESPONSE TO THAT THOSE FUNDING BEING CUT OFF.

I SHOULD NOTE THAT FOR YEARS, IF NOT AS MANY YEARS, AS I'M AWARE OF STATE OF CALIFORNIA HAS ALWAYS BEEN A NET, UM, DONOR TO THE FEDERAL TAX SYSTEM.

WE PRODUCE A TREMENDOUS AMOUNT OF FEDERAL TAXES OUT OF THIS STATE THAT GOES TOWARDS, YOU KNOW, FUNDING IN THE COUNTRY.

AND TO, IT'S KIND OF IRONIC THAT THEN WE WOULD GET CUT OFF FROM A PORTION OF THAT COMING BACK TO CALIFORNIA.

SO, BUT I I'VE JUST FOUND OUT ABOUT IT TODAY.

WE'RE PROVIDING SOME INFORMATION TO COUNCIL LATER THIS WEEK.

SO THEY'RE TAKING THE FEDS ARE TAKING MONEY AWAY FROM US, BASICALLY.

I WAS LIKE, YEAH, WELL, PEOPLE CAN, PEOPLE CAN TAKE THAT TO THE BALLOT BOX NEXT YEAR.

AND REMEMBER THAT.

ARE THERE ANY MORE, UM, DISCUSSION FROM THE COUNCIL COUNCILMAN, I'D BE HAPPY TO MAKE A MOTION TO APPROVE AND ADOPT THE ADOPTION OF FEDERAL WELL, THANK YOU.

AND I WILL NOW INVITE THE PUBLIC TO TESTIFY IF THEY WOULD LIKE TO ON THIS ITEM IN SUPPORT OR OPPOSITION TO PLEASE COME UP TO THE PODIUM AND, UH, PROVIDE US WITH THEIR NAME AND ADDRESS FOR THE RECORD, SEEING THEM THEN COUNCIL MEMBER SHAW.

TO CONSIDERATION ITEMS. ANY MEMBER OF THE AUDIENCE MAY REQUEST TO ADDRESS THE LA HARVEST CITY COUNCIL ON ANY CONSIDERATION ITEM, PROBABLY TO THE LA HARBOR COUNCIL, TAKING A FINAL VOTE ON THE ITEM.

SORRY.

I HAD MOVED THAT WE, THE CITY COUNCIL APPROVE AND ADOPT A RESOLUTION ENTITLED THE RESOLUTION OF THE CITY COUNCIL, THE CITY OF LA HABRA, CALIFORNIA, WHICH CERTIFIES THAT THE CITY OF ALHAMBRA HAS THE RESOURCES TO FUND THE PROJECTS AND THE FEDERAL FISCAL YEAR 20 TO 2022 TO 2023 THROUGH 2027 THROUGH TO 2028 FEDERAL TRANSPORTATION IMPROVEMENT PROGRAM AND AFFIRMS ITS COMMITMENT TO IMPLEMENT ALL PROJECTS IN THE PROGRAM.

IS THERE A SECOND SECOND WITH THE COUNCIL, PLEASE VOTE MOTION PASSED FIVE ZERO.

THANK

[00:40:01]

YOU VERY MUCH.

UH, THERE ARE NO PUBLIC HEARINGS.

WE WILL MOVE ON

[1. APPROVE TO ADOPT A RESOLUTION APPROVING THE FORM AND AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF A BOND PURCHASE AGREEMENT AND A CONTINUING DISCLOSURE CERTIFICATE, ALL IN CONNECTION WITH THE OFFERING AND SALE OF PENSION OBLIGATION BONDS, AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO; AND APPROVE TO ADOPT A RESOLUTION APPROVING A PENSION FUNDING POLICY That the City Council: A. "APPROVE AND ADOPT RESOLUTION NO. ________ ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA APPROVING THE FORM AND AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT, APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF A BOND PURCHASE AGREEMENT AND A CONTINUING DISCLOSURE CERTIFICATE, ALL IN CONNECTION WITH THE OFFERING AND SALE OF PENSION OBLIGATION BONDS, AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO" to authorize the Mayor, the City Manager and the Finance Director, or any designee thereof to execute the following documents, and any other related documents, necessary to issue the Taxable Pension Obligation Bonds, Series 2021, provided the principal amount does not exceed $94 million: Preliminary Official Statement Bond Purchase Agreement Continuing Disclosure Certificate; and B. APPROVE AND ADOPT RESOLUTION NO. _______ ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA APPROVING A PENSION FUNDING POLICY.]

PUBLIC COMMENTS SHALL BE LIMITED TO THREE MINUTES PER INDIVIDUAL WITH THE TOTAL TIME LIMIT OF 30 MINUTES PER CONSIDERATION ITEM, UNLESS OTHERWISE MODIFIED BY THE MAYOR OR CHAIR.

SPEAKING TIME MAY NOT BE GRANTED AND OUR LOAN TO ANOTHER INDIVIDUAL FOR PURPOSES OF EXTENDING AVAILABLE SPEAKING TIME, AND COMMENTS MUST BE KEPT PRE-BRIEF NON-REPETITIVE AND PROFESSIONAL IN NATURE.

ITEM ONE IS TO APPROVE, TO ADOPT THE RESOLUTION, APPROVING THE FORM AND AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF A BOND PURCHASE AGREEMENT AND A CONTINUING DISCLOSURE CERTIFICATE CERTIFICATE, ALL IN CONNECTION WITH THE OFFERING AND SALE OF PENSION OBLIGATION, BONDS AND AUTHORIZING AND DIRECTING CERTAIN ACTION WITH RESPECT THERE, TO AND APPROVED, TO ADOPT A RESOLUTION, APPROVING A PENSION FUNDING POLICY.

AND WE HAVE A STAFF REPORT.

WE DO A MADAM MAYOR TONIGHT.

WE'RE GOING TO HAVE A, UM, MULTIPLE MEMBERS OF OUR TEAM PROVIDE INFORMATION TO COUNCIL ON A PROJECT THAT WE STARTED SPEAKING WITH COUNSEL ABOUT EARLIER THIS SUMMER, UH, FINANCE DIRECTOR, MEL SHANNON, WE'LL START OFF WITH A BRIEF PRESENTATION OF KIND OF WHAT TOOK PLACE EARLIER THIS YEAR THAT LED US TO THIS POINT TONIGHT.

WE ALSO HAVE, UH, A REPRESENTATIVE FROM OUR FINANCIAL ADVISORY FIRM HERE THAT WILL HELP, UH, PROVIDE SOME INFORMATION.

AND WE ALSO HAVE MEMBERS OF OUR FINANCE TEAM AND LEGAL TEAM HERE IF COUNCIL HAS ANY QUESTIONS.

SO WITH THAT SAID, MR. SHANNON, UH, GOOD EVENING, MADAM MAYOR MEMBERS OF THE COUNCIL.

UM, TONIGHT I WILL GO OVER SOME OF THE KEY POINTS CONTAINED IN THE AGENDA REPORT.

AND AS JIM MENTIONED, OUR FINANCIAL ADVISOR, MR. JIM ABN IS HERE FROM PHILBIN ROLL-UP AND ASSOCIATES TO PRESENT YOU WITH THE TECHNICAL POINTS AND NUMBERS THROUGH A POWERPOINT PRESENTATION AND ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE, OR UNDERWRITER FROM BANK OF AMERICA IS A SECURITIES BANK OF AMERICA.

SECURITIES IS HIGHLY VOCAL AS WELL TO PROVIDE ANY MARKET RELATED, UH, ANSWERS TO QUESTIONS THAT YOU MIGHT HAVE.

AND IF IT'S APPROVED, UH, BE AVAILABLE MARKET AND SELL THE BONDS.

SO, UH, THE CITY COUNCIL HAS PREVIOUSLY DIRECTED STAFF TO CLOSELY MONITOR REVENUES, EXPENDITURES, AND FISCAL ISSUES AND ORDERS TO ENSURE THE CITY'S LONG-TERM FISCAL STABILITY, THIS INCLUDED IDENTIFYING AND EVALUATING OPTIONS TO REDUCE THE CITY'S GROWING PENSION.

MY ABILITY OR EVALUATION PROCESS HAS LED US TO RECOMMEND OFFERING AND SALE OF PENSION OBLIGATION, BONDS, PENSION OBLIGATION BONDS, OR A FINANCING TOOL THAT PROVIDES PUBLIC AGENCIES WITH THE ABILITY TO REFINANCE SOME OR ALL OF THEIR UNFUNDED ACTUARIAL LIABILITY, WHICH IS UAL FOR SHORT, DEPENDING ON MARKET CONDITIONS AT THE TIME OF THE SALE.

THIS FINANCING TOOL ALLOWS AGENCIES TO EXCHANGE HIGHER COSTS, VARIABLE RATE DEBT IN THE FORM OF A PENSION UAL WITH LOWER COSTS, FIXED RATE DEBT OVER A SIMILAR TERM.

THE OVERALL STRATEGY OF PENSION OBLIGATION BONDS IS TO ACHIEVE INTEREST RATES SAVINGS BETWEEN THE 7% CURRENTLY BEING CHARGED BY A CALPERS ON THE CITY'S UAL BALANCE AND INTEREST RATES AT WHICH THE BONDS ARE SOLD ON THE OPEN MARKET.

IF APPROVED THE POW ISSUANCE, WHERE WE FINANCE THE CITY'S UAL OBLIGATION, PROVIDING A LUMP SUM PAYMENT FOR PART OR ALL OF THE UAL, WHICH WILL THEN BE REMITTED DIRECTLY TO CALPERS, THEREBY REDUCING OR ELIMINATING THE CITY'S UAL OBLIGATION AS OF THE DATE OF THE BOND SALE AND REPLACING THE UAL OBLIGATION TO CALPERS WITH A NEW OBLIGATION TO BOND INVESTORS, INSTEAD OF PAYING 7% INTEREST ON THE CITY, GIL OBLIGATION PLPS ARE CURRENTLY SO TO INVESTORS AT, OR BELOW 4%, IN SOME CASES, LESS THAN 3%, DEPENDING ON MARKETING CONDITIONS ON A DAY, THE BONDS ARE SOLD TONIGHT.

WE BECOME TONIGHT.

WE COME BEFORE YOU TO PRESENT AN UPDATE OF OUR FINDINGS, DISCUSS THE PROCESS, MAKE A RECOMMENDATION, AND DISCUSS THE TIMELINE TIMELINES, AND RESPOND TO ANY QUESTIONS THAT YOU MIGHT HAVE BACK IN FEBRUARY, 2021, THE CITY ENGAGED PHIL PHILBIN ROLL-UP AND ASSOCIATES AS THE CITY'S MUNICIPAL ADVISOR AND BARCELO AND ASSOCIATES AS OUR ACTUARIAL CONSULTANT TO EVALUATE OPTIONS FOR ADDITIONAL STUDY OF THE CITY'S PUBLIC EMPLOYEES, RETIREMENT, CALPERS, UNFUNDED UAL, BECAUSE THE CITY LACKS RESOURCES TO FULLY FUND THE CITY'S UAL FROM AVAILABLE WEB RESERVES, FIELDMAN DEVELOPED A FINANCING OPTION FOR CONSIDERATION THAT WAS PRESENTED TO CITY COUNCIL AT A PUBLIC STUDY SESSION AT A PUBLIC STUDY SESSION ON APRIL 8TH, 2021 ON JULY 19TH, 2021 CITY COUNCIL APPROVE THE ISSUANCE OF PO B'S IN ORDER TO INITIATE A JUDICIAL VALIDATION PROCESS.

HOWEVER,

[00:45:01]

THAT ACTION BY THE CITY COUNCIL DID NOT APPROVE THE FINAL DOCUMENTS NECESSARY FOR AN ACTUAL PUBLIC DEBT ISSUANCE.

ON NOVEMBER 4TH, 2021 STAFF RECEIVED NOTICE FROM ITS BOND COUNCIL QUINT AND THEMING THAT THE JUDICIAL VALIDATION PROCESS WOULD BE APPROVED.

AND THIS WAS VALIDATED BY THE COURT ON NOVEMBER 5TH, 2021, IN ORDER TO HELP MITIGATE THE GROWTH OF FUTURE UAL AND SUPPORT THE DECISION-MAKING AND BUDGET BUDGETING PROCESS OF THE CITY COUNCIL.

THE CITY HAS DEVELOPED A PENSION FUNDING POLICY.

THE CITY WILL BUDGET 50% OF THE ESTIMATED ANNUAL CASH FLOW SAVINGS REALIZED AT THE TIME THE PLPS ARE SOLD AND WE'LL DEPOSIT THAT AMOUNT EACH YEAR OVER THE 20 YEAR TERM OF THE BONDS INTO THE CITY'S ONE 15 PENSION TRUST ADJUSTED ANNUALLY BY CPI.

AS A RESULT, STAFF NOW RECOMMENDS THE APPROVAL OF A PRINTED, PRELIMINARY OFFICIAL STATEMENT, A BOND PURCHASE AGREEMENT, A CONTINUING DISCLOSURE CERTIFICATE, A PENSION FUNDING POLICY AND RELATED RESOLUTIONS TO FINALIZE THE REQUIREMENTS OR PUBLIC SALE OF TAXABLE CITY OF LA HARBOR PENSION OBLIGATION BOND SERIES 2021 TO REFINANCE THE CITY'S UAL AND HELP MANAGE THE CITY'S PENSION OBLIGATIONS.

THAT CONCLUDES MY PRESENTATION.

I'LL TURN IT OVER TO JIM PEPIJN FROM FIELDMAN ROLLOVER ON ASSOCIATES.

THANK YOU, MEL.

AND AS MR. M FABIAN COMES UP TO PROVIDE HIS PRESENTATION, I SHOULD NOTE FOR COUNCIL, AS YOU ALL KNOW, AND AS MR. SHANNON INDICATED, YOU KNOW, COUNCIL DIRECTED US TO EVALUATE PENSION OBLIGATION BONDS AS A TOOL AND FOR THE BENEFIT OF THE PUBLIC.

UM, I THINK IT'S IMPORTANT TO NOTE THAT THIS ISN'T THE FIRST TOOL WE'RE LOOKING AT TO MANAGE PENSIONS, BUT ACTUALLY ONE OF THE LAST, UM, CITY COUNCIL OVER THE LAST DECADE HAS AGGRESSIVELY APPROACHED UNFUNDED LIABILITY ISSUES WITH OUR PENSION SYSTEM, UH, PRIOR TO THE STATE, INTRODUCING NEW PENSION TIERS, THE CITY COUNCIL LOWERED PENSION OFFERINGS TO NEW HIRES, UH, THROUGH A NEGOTIATED PROCESS WITH OUR BARGAINING UNITS.

UM, WE ALSO HELPED NEGOTIATE WHERE EMPLOYEES PAID THEIR OWN SHARE OF THEIR PENSION COSTS.

PLUS SOME OF THE CITY'S SHARE OF PENSION COSTS.

UM, WE ESTABLISHED THE, UH, SECTION ONE 15 TRUST FUND TO SET ASIDE AVAILABLE RESOURCES EACH YEAR TO PUT AWAY TOWARDS DEDICATED PENSION PAYMENTS.

ALL THESE TOOLS, ALL THESE MECHANISMS TO CONTROL THESE PENSION COSTS HAVE BEEN PUT IN PLACE OVER THE LAST, UH, A DECADE OR SO IN RESPONSE TO THE UNFUNDED GROWING UNFUNDED LIABILITIES.

THIS IS ANOTHER TOOL IN THAT TOOLBOX OF WAYS TO APPROACH, UH, DEALING WITH, UH, THE PENSION UNFUNDED LIABILITIES, UH, AND PENSION OBLIGATION BONDS ARE, IN MY OPINION, ONLY EFFECTIVE WHEN THEY'RE TIED WITH A PENSION FUNDING STRATEGY AND A POLICY, WHICH HAS ALSO BEEN PROVIDED TO COUNCIL TONIGHT TO EVALUATE THAT HELPS, UM, FURTHER BOLSTER THE CITY'S FISCAL STABILITY IF PENSION BONDS ARE APPROVED.

SO WITH THAT, I'LL TURN IT OVER TO MR. FABIAN.

THANK YOU, MAYOR MEMBERS OF CITY COUNCIL, JIM FABIAN OF FIELDMAN ROLL-UP AND ASSOCIATES.

THE CITY'S MUNICIPAL ADVISOR AS A CITY MANAGER AND FINANCE DIRECTOR MENTIONED W WE DID HAVE AN EXTENSIVE STUDY SESSION BACK IN APRIL.

AT THAT TIME WE DISCUSSED THE OTHER CALIFORNIA CITIES THAT HAVE RECENTLY ISSUED PENSION OBLIGATION BONDS.

THAT LIST CONTINUES TO GROW.

IT'S APPROXIMATELY 50 CITIES NOW THAT HAVE ISSUED PENSION OBLIGATION BONDS AS SHOWN ON THIS SLIDE.

THE HIGHLIGHTS ARE CITIES IN ORANGE COUNTY THAT HAVE ISSUED PENSION OBLIGATION BONDS.

AND WE ALSO LISTED UPCOMING PENSION OBLIGATION BONDS THAT WE KNOW ARE IN THE PIPELINE TO BE ISSUED IN THE NEXT, OH, UH, PROBABLY TWO OR THREE MONTHS GOING FORWARD AGAIN, UH, AS WAS MENTIONED, UH, THE CITY HAS AN EXISTING UAL OR UNFUNDED LIGHT ACCRUED LIABILITY THAT YOU HAVE AN OBLIGATION TO PAY.

UH, THIS IS MADE UP OF THE MISCELLANEOUS EMPLOYEES PLAN AND THE SAFETY PLANS THAT YOU HAVE FOR EXISTING AND FORMER EMPLOYEES, UH, YOU ALSO PAY THE NORMAL COSTS OF, FOR, FOR A RETIREMENT COST.

IN ADDITION TO THE UNFUNDED UAL, UM, LOOKING BACK AT JUNE 30TH, 2020, UH, THAT UAL LIABILITY WAS APPROXIMATELY $96 MILLION.

UH, THE CURRENT ESTIMATED PENSION PLAN FUNDING STATUS AT THAT POINT IN TIME WAS ROUGHLY 69% 68.8%.

AND YOU CAN SEE ON THE BOTTOM OF THE SLIDE, HOW THAT WAS CALCULATED.

NOW, REMEMBER THAT IS LOOKING BACKWARDS IN THE REAR VIEW MIRROR, SO TO SPEAK, BECAUSE IT DOESN'T TAKE INTO ACCOUNT THE EARNINGS THAT WERE MADE BY PERS, WHICH WERE ROUGHLY OVER 21%.

AND IT ALSO REFLECTED A 7% DISCOUNT RATE AT THAT POINT IN TIME.

[00:50:03]

COULD YOU EXPLAIN WHAT A DISCOUNT RATE IS AND HOW THAT PLAYS INTO THIS PLEASE? SURE.

IS, UH, AS A FINANCE DIRECTOR, MILL SHANNON MENTIONED THE, THE DISCOUNT RATE IS THE INTEREST RATE ON THE LIABILITY THAT IS PAID TO PER, SO THAT'S A, A INTEREST RATE OR A RATE THAT THEY CHARGE THEIR MEMBER AGENCIES THAT PAY.

AND PART OF THE IDEA OF THE PENSION OBLIGATION BOND IS TO GO TO THE FINANCIAL MARKETS ISSUE, BONDS, AND REPLACE THAT DEBT WITH A LOWER INTEREST RATE DEBT.

AND WE'LL, WE'LL SHOW THAT IN A LITTLE BIT.

SO AGAIN, LOOKING AT YOUR CURRENT STATUS OF YOUR UNFUNDED LIABILITY, IT RANGES ANYWHERE FROM 70.6 MILLION TO 92.8 USING THE JUNE 30TH, 2020 AMOUNT.

UH, WHAT WE'RE ASSUMING IS A DECEMBER 15TH, 2021 PAYOFF.

UH, WE ALSO ARE ASSUMING OR FACTORING IN THAT 21.3% GAIN THAT PERS HAD, UH, FOR 2021.

AND THEN INTERESTINGLY, UH, RIGHT NOW, UH, IN SACRAMENTO PAPERS IS MEETING, UH, WITH THE MEMBRANE AGENCIES AND REALLY GOING THROUGH A PROCESS OF DETERMINING WHAT THE, UH, THE DISCOUNT RATE WILL BE IN THE FUTURE.

WE'RE ASSUMING THAT THE DISCOUNT RATE WILL BE CHANGED FROM 7% TO 6.8%.

AND THAT'S PART OF THEIR PLANNING PROCESS OF AS THEY HAVE THESE, UH, REALLY HIGHER EARNINGS, LIKE THE 21.3%, THERE'S AN AUTOMATIC PRODUCTION OF THE DISCOUNT RATE.

AND WE'RE ASSUMING THAT'S GOING TO BE, UH, ADOPTED AT 6.8%.

THERE IS A POSSIBILITY THAT THEY COULD DECIDE TO LOWER THAT DOWN TO 6.5%.

SO WHEN THEY LOWERED THE DISCOUNT RATE, THAT RAISES YOUR LIABILITY.

SO YOU CAN SEE HERE ON THIS SLIDE, WE HAVE THE JUNE 30, 20, 20 VALUATION OF 92 MILLION.

WE HAVE THE POTENTIAL LIABILITY, UH, FACTORING IN THE GAINS OF THE 21.3% AND A 6.8% DISCOUNT RATE TO COME UP TO A LIABILITY OF 70 MILLION, 605,000.

IF THEY CHANGE THAT DISCOUNT RATE TO SIX AND A HALF PERCENT, IT WOULD INCREASE THAT LIABILITY TO 85.93% OR NOT 930,000.

SO WE'RE GOING TO KNOW WHAT THEY DO THIS WEEK, AND WE'LL FACTOR THAT INTO THE ULTIMATE SIZING OF THE BOND ISSUE, UH, AFTER THE DECISION IS MADE BY THE CAL PERS BOARD.

UH, THIS IS, UH, AGAIN, UH, LOOKING AT THE MARKET AS WE TALKED ABOUT IN APRIL, UH, PENSION OBLIGATION, BONDS ARE TAXABLE TRANSACTIONS, UH, TIED TO TREASURIES, A SPREAD TO TREASURIES.

AND TYPICALLY YOU LOOK AT THE TEN-YEAR TREASURY, WHICH IS ABOUT 1 62 TODAY AND THE 30 YEAR TREASURY, WHICH IS ABOUT 2.01% TODAY.

SO WE'RE ESTIMATING THAT OUR, OUR INTEREST RATE ON A PENSION OBLIGATION BOND ISSUED IN, IN DECEMBER, UH, WOULD BE ABOUT 3.1, 5% COMPARED TO THAT CALPERS DISCOUNT RATE OF 7% OR 6.8%.

SO, UH, YOU CAN SEE THAT THERE IS A BENEFIT TO REPLACING THAT DEBT WITH A FIXED RATE DEBT.

AGAIN, SOME OF THE OBJECTIVES OF ISSUANCE ISSUING PENSION OBLIGATION BONDS AS, AS CITY MANAGER, JIM CEDROS SAID, YOU KNOW, THIS IS PART OF AN OVERALL PROCESS THAT YOU HAVE BEEN DOING FOR YEARS TO GET CONTROL OF YOUR PENSION COSTS.

UH, THIS WOULD PROVIDE THE ABILITY TO HAVE A HUNDRED PERCENT FUNDING OF YOUR PURSE LIABILITY, UH, AT THIS POINT IN TIME WHEN, WHEN THE BONDS ARE ISSUED AND THE PAYMENT IS MADE TO PERS AS BEST AS WE CAN ESTIMATE THAT A HUNDRED PERCENT PAY OFF, UH, WOULD SMOOTH OUT AND LEVEL YOUR PAYMENTS.

UH, WE, WE HAVE SHOWN YOU PREVIOUSLY HOW YOU HAVE THAT RAMP UP AND YOUR PAYMENTS, AND HAVE BEEN DEALING WITH THAT OVER THE PAST COUPLE OF YEARS, BY ISSUING PENSION OBLIGATION BONDS, WE'RE RECOMMENDING A FIXED LEVEL DEBT SERVICE SO THAT YOU WOULD ACTUALLY KNOW WHAT THAT PAYMENT IS FOR THE NEXT, UH, 20 YEARS.

UH, IT MAXIMIZES THE SAVINGS.

IT MINIMIZES THE RISK.

IT DOES NOT EXTEND THE MATURITY IN IN FACT, WE'LL SHOW THAT IT ACTUALLY SHORTENS THE MATURITY OF YOUR EXISTING LIABILITY.

UH, WE WOULD ALSO PRESERVE FUTURE FLEXIBILITY TO PAY OFF THAT DEBT IN 10 YEARS, IT WOULD BE CALLABLE AT PAR IN YEAR IN THE 10TH YEAR OR LATER.

UH, THIS, THIS SHOWS A SUMMARY OF THE, UH, BOND ISSUE.

AS YOU CAN

[00:55:01]

SEE THERE, WE'RE PAYING OFF THE, UH, 70,605,000.

SO AT CLOSING, WHEN THE BONDS ARE, ARE SOLD AND THEY'RE CLOSED, THERE WOULD BE AN ACTUAL WIRE TRANSFER MADE TO PERS IN, IN THAT AMOUNT, UH, THIS SINCE ASSUMES THE CURRENT TAXABLE INTEREST RATES THAT I MENTIONED ROUGHLY ABOUT 3.1, 5%.

UM, I'M VERY HAPPY TO REPORT THAT STANDARD.

AND POOR'S CAME BACK ON FRIDAY AFTERNOON WITH A DOUBLE A PLUS RATING FOR THE CITY.

SO IT'S ACTUALLY A LITTLE BIT BETTER THAN SHOWN ON THIS SLIDE.

UH, I THINK THAT'S REFLECTIVE OF A REALLY STRONG MANAGEMENT THAT THE CITY HAS, UH, THE DEMOGRAPHICS OF THE COMMUNITY, UH, AND ALSO THE, THE LEADERSHIP OF THE COUNCIL TO REALLY ADDRESS SOME OF THESE HARD DECISIONS ABOUT PENSION.

UH, THIS BOND ISSUE, AS I MENTIONED, WOULD BE CALLABLE IN 10 YEARS.

UH, THERE WOULD BE NO RESERVE FUND.

UH, AS I MENTIONED ALSO, THERE'S NO EXTENSION OF THE FINAL MATURITY OF YOUR EXISTING UAL.

IN FACT, WE'RE, WE'RE SHORT SHORTEN IT BY THREE YEARS.

UH, AND WE'RE FACTORING IN THAT, UH, 21.3% RETURN.

AND THEN THE 6.8% ACTUARIAL DISCOUNT RATE, YOU CAN SEE ON THE FAR RIGHT COLUMN THAT THE ACTUAL INTEREST, UH, OR THAT SERVICE ON THE BONDS IS FIXED AT 4.7 MILLION PER YEAR.

SO THAT'S A KNOWN PAYMENT THAT YOU'LL MAKE, UH, TO THE BOND, UH, INVESTORS GOING FORWARD.

AND THEN THIS ON THE BOTTOM LEFT, YOU CAN SEE THE ORANGE LINE, I THINK THAT'S ORANGE OR RED ON.

I'M NOT QUITE SURE, UH, THAT SHOWS YOUR EXISTING LIABILITY THAT YOU HAVE WITH PERS.

AND THEN YOU CAN SEE THE 4.7 MILLION, THE LEVEL OF DEBT SERVICE PAYMENT, SO THAT, THAT GAP, OR THAT DELTA IS THE SAVINGS, UH, FOR THE FIRST, REALLY 16, 17 YEARS, THEN WE HAVE SOME COSTS IN THE OUTLYING YEARS BECAUSE WE'RE, WE'RE USING THE LEVEL OF DEBT SERVICE PAYMENT OPTION.

UH, AS I MENTIONED, UH, WE THINK ARE ALL IN TRUE INTEREST COSTS WOULD BE ABOUT 3.1, 4%.

UH, THE BENEFIT TO THE, TO THE CITY, UH, BY REDUCING THE PAYMENTS IS A, ROUGHLY $21 MILLION, UH, ON A, ON A CASHFLOW BASIS OR DISCOUNTED BASIS.

THAT'S ABOUT 20.3 MILLION.

UH, AND SO YOU CAN SEE THAT'S ABOUT A 28.6% NET PRESENT VALUE BENEFIT TO THE, TO THE CITY BY ISSUING PENSION OBLIGATION BONDS.

SO IT'S, IT'S A RATHER SIGNIFICANT SAVINGS TO THE CITY AND THEN AS A CITY MANAGER, JIM CEDROS MENTIONED, WE ARE RECOMMENDING ADOPTION OF A, OF A PENSION FUNDING POLICY.

WE THINK THAT'S A VERY PRUDENT FINANCIAL MANAGEMENT TOOL GOING FORWARD, UH, TO HELP, UH, THE CITY MANAGE FUTURE PENSION COSTS AND TAKING SOME OF THE SAVINGS AND APPLYING THAT INTO THE, TO, UH, DEAL WITH FUTURE PENSION COSTS.

SO THAT'S A SEPARATE ACTION IN FRONT OF YOU TO SEE MANY NAPSTER, THE, UH, THE CONSIDERATION OF THE PENSION OBLIGATION BONDS, THE ADOPTION OF THE PENSION FUNDING POLICY, UH, AS WAS MENTIONED, THE TEAM CONSISTS OF THE UNDERWRITER THAT WAS HIRED THROUGH A COMPETITIVE PROCESS BANK OF AMERICA SECURITIES.

HOLLY VOCALE IS HERE FROM A BANK OF AMERICA.

YOUR BOND COUNSEL AND DISCLOSURE COUNSEL IS QUINTIN TIMAC, UH, MY FIRM, UH, PHILBIN ROLL-UP AND ASSOCIATES AS YOUR MUNICIPAL ADVISOR, UH, WE HAVE WORKED CLOSELY WITH THE CITY'S ACTUARIAL CONSULTANTS.

YOU MIGHT REMEMBER MARY BETH REDDING, UH, COMING TO THE APRIL, UH, STUDY SESSION THAT WE HAVE AND PROVIDING HER ACTUAL AERIAL PERSPECTIVE ON YOUR LIABILITY AND THE SUCCESS PROBABILITY OF ISSUANCE OF PENSION OBLIGATION BONDS, AND THEN BANK OF NEW YORK MELLON TRUST WOULD ACT AS THE TRUSTEE ON THE TRANSACTION.

UH, TONIGHT WE HAVE IN FRONT OF YOU, A RESOLUTION, UH, THIS RESOLUTION WOULD APPROVE THE PRELIMINARY OFFICIAL STATEMENT.

THIS IS THE OFFERING STATEMENT USED, UH, BY THE UNDERWRITER TO, UH, SELL THE BONDS TO INVESTORS.

UH, WE ALSO HAVE THE BOND PURCHASE AGREEMENT THAT IS THE CONTRACT WITH B OF A, TO, TO BUY YOUR BONDS AND THEN RESELL THEM TO THE INVESTORS.

THE CONTINUING DISCLOSURE CERTIFICATE, YOU WOULD BE ANNUALLY REQUIRED TO PROVIDE UPDATES TO THE BOND MARKET OF, UH, INFORMATION THAT WAS INCLUDED IN THE ORIGINAL OFFERING STATEMENT.

AND THAT IS, UH,

[01:00:01]

PROVIDED FOR IN THE CONTINUING DISCLOSURE CERTIFICATE.

AND THEN SEPARATELY, WE HAVE THE RESOLUTION APPROVING THE PENSION FUNDING POLICY, UH, JUST GOING BACK OVER THE TIMELINE, AS MEL MENTIONED, NOVEMBER 5TH, NOT THE FOURTH WAS A, WHEN WE RECEIVED THE SIGN, UH, JUDGMENT, UH, WE DID RECEIVE THE RATING LAST FRIDAY, UH, FRIENDS STANDARD AND POOR'S, AND AGAIN, DOUBLE A PLUS REALLY CONGRATULATE YOU ON THAT RATING.

UH, THE, UH, 30 DAY PENSION VALIDATION PERIOD ENDS ON DECEMBER THE FIFTH, 30 DAYS AFTER NOVEMBER THE FIFTH, THAT WE'D BE GOING OUT AND, UH, POSTING THE PRELIMINARY OFFICIAL STATEMENT, MARKETING THE BONDS, AND THEN CLOSING THE TRANSACTION AND WIRING THE FUNDS TO, TO CALPERS IN DECEMBER.

SO HAPPY TO ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE REGARDING THIS MATTER.

UH, BEFORE WE GET THE QUESTIONS, JUST A FEW COMMENTS AS WELL ON KIND OF REFLECTING BACK TO EARLY SUMMER OR LATE SPRING, WHEN WE FIRST STARTED THIS PROCESS, A FEW THOUGHTS ABOUT PENSION OBLIGATION BONDS FOR COUNCIL TO CONSIDER WHILE WE'RE DOING OUR BEST TO MINIMIZE RISK BY DOING THIS TRANSACTION, IT DOES NOT ELIMINATE RISK BY ANY STRETCH.

UM, A GOOD EXAMPLE IS THE FACT THAT PERS EARNED 21% LAST YEAR THAT BROUGHT OUR UNFUNDED LIABILITY DOWN BY OVER $20 MILLION, JUST BECAUSE OF THAT ACT ALONE.

THEORETICALLY, IF THEY EARN 20% FOR THE NEXT TWO OR THREE YEARS IN A ROW THAT COULD COMPLETELY WIPE OUT THE CITY'S UNFUNDED LIABILITY.

THAT'S UNLIKELY BECAUSE 21% IS FAR BEYOND I THINK, ANY REASONABLE RATE OF RETURN THAT PURRS ASSUMES.

IN FACT, WHAT THEY ASSUME IS 7%.

AND NOW THEY'RE GOING TO BE ASSUMING 6.8% OR 6.5% AS THEIR TARGETED RATE OF RETURN.

UM, THE OTHER RISK FACTOR IS THAT YOU THINK WE GET TO THE POINT WHERE WE PAY OFF A HUNDRED PERCENT OF OUR UNFUNDED LIABILITY.

I CAN ALMOST GUARANTEE YOU THAT AT SOME POINT OVER THE NEXT 20 YEARS, A NEW UNFUNDED LIABILITY WILL FORM.

AND WHETHER THAT'S BECAUSE PERS CANNOT EARN 6.8% ONE YEAR BECAUSE THE MARKET UNDER-PERFORMS, OR PPARS DECIDES THAT WE ALL ARE WORKING OR LIVING LONGER AFTER RETIREMENT, THEREFORE IT'S GOING TO TAKE MORE MONEY TO PAY PENSIONS OVER THE LIFE OF A, AN EMPLOYEE THAT COULD CREATE NEW UNFUNDED LIABILITIES.

AND THAT'S WHEN HAVING A PENSION FUNDING POLICY COMES INTO PLAY TO HELP IMMEDIATELY HAVE A PLAN TO ADDRESS THOSE NEW UNFUNDED LIABILITIES, BECAUSE THAT'LL BE BEYOND WHAT THIS PENSION BONDS WILL BE GOING TO BE USED FOR, TO PAY FOR.

AND THE OTHER KEY POINT TO MAKE IS THAT WE'RE NOT PAYING OFF THE CITY'S OBLIGATION TO CALPERS.

ALL WE'RE REALLY DOING IS TRADING ONE TYPE OF DEBT FOR ANOTHER.

WE OWE CALPERS $71 MILLION RIGHT NOW GIVE OR TAKE AT 7%.

AND WHAT WE'RE PROPOSING TO DO IS TO REPLACE THAT WITH A 3%, 3.2% FIXED RATE OBLIGATION OVER THE SAME TERM OF THAT.

UM, AND THAT EFFECTIVELY IS LIKE REFINANCING YOUR MORTGAGE.

YOU BRING UP MORTGAGE PAYMENT DOWN BECAUSE YOU REFINANCE AT A LOWER RATE AND YOU PAY LESS.

THESE ARE FACTORS THAT COUNCIL SHOULD THINK ABOUT CAREFULLY AS WE EVALUATE A PENSION OBLIGATION BOND.

AGAIN, BECAUSE WE'RE IN A HISTORICALLY LOW INTEREST RATE, THIS KIND OF TRANSACTION CAN MAKE A LOT OF SENSE FOR AN ORGANIZATION THAT HAS THOUGHT ABOUT A MULTITUDE OF OPTIONS OF DEALING WITH PENSION OBLIGATION LIABILITY, WHICH I THINK WE HAVE UP TO THIS POINT.

AND AGAIN, THIS IS ONE MORE, VERY IMPORTANT TOOL IN THAT TOOLBOX FOR US TO CONSIDER AT THIS POINT.

AND WITH THAT, WE'D BE HAPPY TO ANSWER ANY QUESTIONS.

THANK YOU VERY MUCH FOR THAT CLARIFICATION.

UH, ARE THERE ANY QUESTIONS COUNCIL MEMBERS SHAW, THANK YOU ON SLIDE 10.

I DON'T KNOW IF WE CAN PULL THAT BACK UP, BUT WE SEE A NUMBER OF INDIVIDUALS WHO ARE CONSULTANTS AND UNDERWRITERS AND BOND COUNSEL AND SO FORTH.

I ASSUME EACH OF THESE COMPANIES AND INDIVIDUALS ARE CHARGING A FEE.

UM, DO WE HAVE ANY IDEA? CAN, CAN ANYONE TELL ME HOW MUCH THE FEES ARE WHEN WE ADD THEM ALL TOGETHER FOR THIS TRANSACTION? UH, ACTUALLY WE DO INCLUDE A GOOD FAITH ESTIMATE.

I BELIEVE IT'S AN ATTACHMENT TO THE RESOLUTION AND I I'M, I APOLOGIZE IN THE FISCAL IMPACT OF THE STAFF REPORT, UH, WE LIST APPROXIMATELY 500 AND TWENTY-FIVE THOUSAND DOLLARS IN FEES TO PAY TOWARDS, UM, LEGAL COUNSEL, UM, FOR THE RATING THAT WE RECEIVED FOR BOND UNDERWRITING FEES AND FOR OTHER, UH, FOR, UM, FINANCIAL ADVISORY FEES.

SO THE TOTAL IS RIGHT AROUND $525,000 AS AN ESTIMATE.

UM, READ OF THEIR PALSY POSITION, UH, THE GFR AND I BELIEVE CSM DO NOT ADVISE ISSUING PENSION OBLIGATION BONDS, Y UH, FOR A VARIETY OF REASONS.

NOW WE HAVE A, THERE'S A ORGANIZATION FOR FINANCE DIRECTORS ACROSS THE STATE OF CALIFORNIA AND, UH, THEY RECOMMEND THE CITY'S NOT DUE THE ISSUE, PENSION OBLIGATION BONDS.

IS THAT CORRECT? THAT'S CORRECT.

AS A BUYER, MOST RECENT,

[01:05:01]

I THINK THEY SEE THAT AS, UM, UH, A TOOL THAT CARRIES CERTAIN RISKS ASSOCIATED WITH IT.

UM, A LOT OF THE RISKS THAT THEY, I OUTLINE OR IDENTIFY, I THINK WE'VE MITIGATED AND THE WAY WE'VE STRUCTURED THIS DEBT.

UH, I THINK THE BIGGEST KEY IN THIS IS THAT, UM, IN OTHER STATES, UH, OUTSIDE OF CALIFORNIA, WHEN A LOCAL JURISDICTION LIKE MANY CITIES AND LARGER CITIES AND OTHER STATES, THEY CARRY THEIR OWN PENSION SYSTEMS FOR THEIR EMPLOYEES.

SO WHAT THEY MIGHT DO IS ISSUE PENSION OBLIGATION BONDS, AND THEN THAT CITY WOULD THEN INVEST THOSE PROCEEDS IN A WAY TO TRY TO GET A RETURN, UM, AND TAKE ADVANTAGE OF MARKET CONDITIONS.

WHEREAS IN CALIFORNIA, WHEN PENSION OBLIGATION BONDS ARE ISSUED BY A PURGE PER AGENCY, THOSE FUNDS ARE THEN SENT THE PERS TO BE MANAGED AS PART OF THE PERVS PORTFOLIO.

SO THE CITIES DON'T MANAGE THOSE FUNDS AT THE DATE.

WHEN THIS TRANSACTION CLOSES, THOSE FUNDS ARE TRANSFERRED DIRECTLY TO PURS.

WE'RE ALSO USING WHAT I WOULD CALL A VANILLA STRUCTURE.

THIS IS A GENERAL OBLIGATION DEBT OF THE CITY FIXED RATE, UM, UH, LEVEL DEBT SERVICE.

OVER 20 YEARS, THERE ARE NO DERIVATIVES OR SWAP, UH, STRUCTURES THAT OFTEN , WE'LL TALK ABOUT AS BEING HIGHER RISK SECURITY STRUCTURES.

WE DON'T USE ANY OF THOSE IN THIS TRANSACTION.

IT'S A STRAIGHTFORWARD, UM, PENSION OBLIGATION OBLIGATION TO THE CITY.

I THINK ONE OTHER POINT TO MENTION TOO, IS THE FACT THAT, UH, W WE ARE LOOKING AT HAVING A TENURE PAR CALL OR AT A HUNDRED PERCENT IN, UH, IN PREVIOUS, UH, PENSION OBLIGATION BONDS THAT WERE ISSUED SAY 10, 10 YEARS AGO, OR SO THE, THOSE MOSTLY WERE DONE WITH A MAKE WHOLE CALL WHERE THE INVESTORS HAD TO BE MADE WHOLE BEFORE THE BONDS COULD BE, UH, PAID OFF OR REFUNDED, UH, WITH THE, UH, CURRENT CHANGES AND EVOLUTION OF THE BOND MARKET FOR TAXABLE TRANSACTIONS.

WE NOW HAVE THE ABILITY TO CALL THESE BONDS IN 10 YEARS.

SO THAT WAS ONE OF THE THINGS THAT WE IDENTIFIED A, YOU MIGHT RECALL, BACK IN APRIL, WE DID ADDRESS ALL THE CONCERNS THAT WERE RAISED BY AND WE SHOWED HOW WE WERE LOOKING TO MITIGATE THOSE RISKS.

AND I THINK GFA ONE OF THEIR VERY LEGITIMATE CONCERNS IS THAT AN AGENCY ISSUES 20 YEARS OF DEBT TO PAY OFF ITS OBLIGATION, AND THEN A NEW UNFUNDED LIABILITY STARTS TO FORM FOR A VARIETY OF REASONS WITH THAT PENSION PROVIDER.

I THINK, UH, BECAUSE OF THAT IS ONE OF THE MAJOR REASONS WHY STAFF'S RECOMMENDING THE, UH, THE ADOPTION OF A POLICY THAT FUNDS PENSIONS, UH, AND COMES UP WITH A FUNDING PLAN SO THAT THERE'S FUNDS SET ASIDE EVERY YEAR FROM WHATEVER SAVINGS WE DERIVE AS A RESULT OF THIS TRANSACTION.

AND THOSE FUNDS ARE THEN PUT INTO A SPECIAL RESERVE THAT CAN BE USED TO PAY DOWN FUTURE UNFUNDED LIABILITIES, IF THEY FORM, AND AS THEY FORM, WITHOUT THAT PLAN, THIS DOES BECOME A MORE RISKY PROPOSITION BECAUSE IF A FUTURE UNFUNDED LIABILITY FORMS YOU ONLY PLACE TO GET THOSE FUNDS TO PAY FOR THAT WOULD BE OUT OF YOUR GENERAL FUND OPERATING BUDGET.

AND THEN THAT COULD AFFECT SERVICES.

AND WE, WE DO, WE ARE TRYING TO DO OUR BEST TO AVOID THAT BY HAVING A SEPARATE RESERVE.

NOW, GENERALLY, WHEN A GOVERNMENT ENTITY IS ISSUING A BOND, LET'S LIKE A SCHOOL DISTRICT IS DOING A FACILITY BOND, UM, THAT HAS TAKEN TO THE VOTERS.

WHY, WHY ISN'T THIS, UM, SUBJECT TO A VOTE OF, OF OUR ELECTORATE? UH, I WILL, UH, HAVE DEFERRED OUR LEGAL COUNSEL ON THAT.

THAT WAS THE VALIDATION PROCEEDING WE WENT THROUGH.

AND, UM, UH, OUR ATTORNEY KIM BARLOW CAN ADDRESS THAT.

FUND A, UM, AN OBLIGATION IMPOSED BY LAW IS NOT, IS NOT SUBJECT TO THE DEBT LIMIT AND IS NOT SUBJECT TO THE VOTE OF THE PEOPLE.

GOOD EVENING, MAYOR MEMBERS OF THE COUNCIL, KIMBERLY HALL, BARLOW, UH, DEPUTY CITY ATTORNEY.

UH, THE REASON THAT, UM, THEIR A IS NOT REQUIRED IS BECAUSE THIS, UM, IS EXEMPT IT'S, IT DOESN'T COUNT, UM, AGAINST THE, UH, THE BORROWING LIMIT.

SO, UM, IT'S, UH, A MAN, UH, A LEGAL REQUIREMENT, SO WE DON'T HAVE TO TAKE IT TO THE VOTERS.

AND THE COURT HAS SO HELD IN THE VALIDATION ACTION THAT WE FILED.

IS THIS PROP TWO 18? NO, NO, NO.

WHAT WAS, WHAT WAS THE, WHAT'S THE REQUIREMENT THAT YOU DO YOU GO TO YOUR ELECTORATE TO ISSUE? YEAH, THAT'S ACTUALLY IN THE CONSTITUTION, RIGHT? RIGHT.

UM, WELL, SO IT'S PROP TWO 18, BUT IT'S A SEPARATE PROVISION.

UM, YOU'RE JUST SAYING, OKAY.

SO IT HAS BEEN CHALLENGED WHETHER IT HAS TO BE SUBJECT TO A VOTE AND THE, AND THE COURTS OF APPEAL, UH, RULED THAT IT DOES NOT HAVE TO GO TO THE VOTERS.

RIGHT.

WE DID A VALIDATION ACTION AND THE COURTS HAVE DETERMINED OVER MANY YEARS THAT THIS TYPE OF BOND, BECAUSE IT'S, UH, TO

[01:10:01]

THANK YOU VERY MUCH, MS. BARLOW, UM, ARE THERE ANY MORE QUESTIONS FROM THE COUNCIL? THANK YOU VERY MUCH.

I WILL NOW INVITE THE PUBLIC TO TESTIFY.

SHOULD THEY WANT TO FOR, OR AGAINST THIS ITEM? IF SO, PLEASE COME UP TO THE PODIUM AND PROVIDE US YOUR NAME AND YOUR ADDRESS FOR THE RECORD.

SEE, NONE.

I WILL ASK FOR COUNCIL DISCUSSION AND OR ACTION.

THEN I WILL ASK IF THERE IS A MOTION THAT A MAYOR MOVE TO A PROVEN ADOPT A RESOLUTION AND TYLER RESOLUTION TO THE CITY COUNCIL OF THE CITY OF LA HARBOR, APPROVING THE FORM AND AUTHORIZING DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT, PROVING THE FORM AND AUTHORIZING THE EXECUTION OF A BOND PURCHASE AGREEMENT AND A CONTINUING DISCLOSURE CERTIFICATE, ALL IN CONNECTION WITH THE OFFERING AND SALE OF PENSION OBLIGATION, BONDS AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT TO AUTHORIZE THE MAYOR, THE CITY MANAGER, FINANCE DIRECTOR, OR ANY DESIGNEE THEREOF TO EXECUTE THE FOLLOWING DOCUMENTS AND ANY OTHER RELATED DOCUMENTS NECESSARY TO ISSUE THE TAXABLE PENSION OBLIGATION BONDS SERIES 2021 PROVIDED THE PRINCIPAL AMOUNT DOES NOT EXCEED 94 MILLION PRELIMINARY OFFICIAL STATEMENT, BOND PURCHASE AGREEMENT, CONTINUING DISCLOSURE CERTIFICATE, AND APPROVE AND ADOPT A RESOLUTION AND TITLE OF RESOLUTION WITH THE CITY COUNCIL OF THE CITY OF LA HABRA APPROVING A PENSION POLICY FUND.

IS THERE A SECOND SECOND WITH THE COUNCIL, PLEASE VOTE LOTION PASS FOUR ONE.

WE WILL NOW PROCEED TO THE MAYORS COMMUNITY CALENDAR.

[ MAYOR'S COMMUNITY CALENDAR:]

THE LOCAL COVID VACCINATION EVENTS ARE OCCURRING AT HOSPITALS, MEDICAL CENTERS, PHARMACIES, AND OTHER LOCATIONS AROUND THE COUNTY, INCLUDING HERE IN LA HARBOR.

IN ADDITION, TESTING IS ALSO AVAILABLE TO LEARN, UH, THE, OF THE LOCATIONS OF UPCOMING BATH CONATION CLINICS IN LA BARBARA, OR HOW TO GET TESTED.

PLEASE CONTACT THE COMMUNITY SERVICE DEPARTMENT AT 5 6 2 3 8 3 4 2 0 0 TO SCHEDULE AN APPOINTMENT OR FOR MORE INFORMATION ON ELIGIBILITY OR OF LOCATION TO THE VACCINATION EVENTS OUTSIDE OF LA HARBOR, PLEASE VISIT WWW.MY TURN.CA.GOV, AND THEN MARK YOUR CALENDAR AND JOIN US FOR THE LA HARBOR TAMALE FESTIVAL, WHICH WILL OCCUR SATURDAY, DECEMBER 4TH, FROM 10:00 AM TO 10:00 PM.

THE TAMALE FESTIVAL WILL TAKE PLACE ALONG EUCLID STREET BETWEEN LA HARBOR BOULEVARD AND BRIGHT AND BECKER AVENUE.

ENJOY THE QUALITY ENTERTAINMENT, GET IN SOME HOLIDAY SHOPPING AND OF COURSE, AND A CERTAIN AMOUNT OF DELICIOUS TAMALES.

FOR MORE INFORMATION, PLEASE CALL 5 6 2 3 3 4 2 0 0.

THEN CONSIDER HELPING LAHABRA ANS IN NEED THIS HOLIDAY SEASON BY CONTRIBUTING TO THE 2021, THE HARBOR HOLIDAY GIVING PROGRAM.

THIS LONG-TIME PROGRAM DELIVERS A MEASURE OF CHEERS TO CHILDREN AND FAMILIES WHO NEED A LITTLE HELP DURING THE HOLIDAY SEASON.

DONATIONS WILL BE GRATEFULLY ACCEPTED AT THE LA HARBOR COMMUNITY CENTER NOW THROUGH DECEMBER 15, AND WE'RE HAPPY TO ACCEPT THE FOLLOWING ITEMS, ANY NEW UNWRAPPED TOY FOR CHILDREN AGES TWO THROUGH 12 FINANCIAL DONATIONS OR GIFT CARDS, AND FOR MORE INFORMATION, OR TO LEARN ABOUT HOW YOU ARE AN ORGANIZATION YOU REPRESENT CAN BECOME AN EVENTS SPONSOR.

PLEASE CALL 5 6 2 3 8 3 4 2 0 0.

AND LASTLY, AS WE APPROACH THE HOLIDAY SEASON, PLEASE BE AWARE THAT THE LA HARBOR CITY HALL WILL BE CLOSED FOR THE HOLIDAY BEGINNING WEDNESDAY, DECEMBER 20 SECONDS, 2021, AND REOPENING ON MONDAY, JANUARY 3RD, 2022, THE CLOSURE WILL NOT IMPACT PUBLIC SAFETY OR PUBLIC WORK SERVICES, WHICH WILL CONTINUE TO OPERATE AS NORMAL.

FOR MORE INFORMATION, PLEASE CALL THE CITY'S MANAGER'S OFFICE AT 5 6 2 3 8 3 4 0 1 0.

AND I WOULD ASK IF THERE'S

[ COMMENTS FROM STAFF:]

ANY COMMENTS FROM STEVE.

OH YES.

MADAM MAYOR.

I'M VERY HAPPY TO INTRODUCE ONE OF OUR NEWEST EMPLOYEES.

UH, WE, UH, TODAY ARE, UM, WE HAD OUR BRAND

[01:15:01]

NEW DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT START MS. SUSAN KIM AND SUSAN WAVE.

UM, SO SHE'S GOT A MASK ON, SO YOU CAN'T REALLY BE, UH, NOT THAT EASY TO SEE WHO SHE IS, BUT JUST TO START IT TODAY.

AND WE'RE VERY HAPPY TO GET OUR FROM A, WE STOLE HER FROM ANAHEIM.

SHE RAN THEIR ADVANCED PLANNING DIVISION AND HAS A WELL OVER 20 YEARS EXPERIENCE AT ANAHEIM, A RESIDENT OF FULLERTON.

SO SHE IS VERY FAMILIAR WITH LAHABRA ALREADY, AND IT'S GOING TO BE A GREAT ADDITION TO OUR EXECUTIVE MANAGEMENT TEAM.

SO WELCOME ABOARD.

WELCOME.

UM, ARE THERE ANY

[ COMMENTS FROM COUNCILMEMBERS:]

COMMENTS FROM THE COUNCIL MEMBERS, UH, COUNCIL MEMBER GOMEZ, HAVE YOU HEARD HAPPY BELATED BIRTHDAY, CONGRATULATIONS.

AND VERY MUCH JUST WANT TO SAY, UH, YOU HIT 70, BUT LOOK LIKE YOU HIT IT GOING 40.

I AM 70 YEARS OLD.

COUNCIL MEMBER SHAW.

I WOULD LIKE TO REPORT OUT, UH, I TENDED THE STATE OF THE COMMUNITY ON NOVEMBER 3RD, OVER AT THE LAHABRA COMMUNITY CENTER.

AND, UH, SO I HAD LUNCH AND, AND AN UPDATE ON A COMMUNITY.

GOOD JOB.

THANK YOU, MADAM MAYOR.

I FOR, I FORGOT.

I DO ALSO HAVE TO REPORT ON THE STATE OF THE COMMUNITY VERY WELL DONE REPORT YOU HAD DONE FOR US, UH, MADAM MAYOR.

GREAT JOB.

AND ALSO GOT A 10 NOTE WITH YOU, MADAM MAYOR, THE, UH, FOURTH DISTRICT KINDNESS AWARDS, WHICH WAS HOSTED HERE AT CITY HALL ON NOVEMBER 13TH HERE AT CITY HALL.

AND THAT WAS A GREAT EVENT AS WELL.