The time is 2.30 and now is the time for audience comments. Anyone who is wishing to address the council on any matters not on the agenda may do so in writing through email video appearance or in person at this time. I do have one oral communications form from Rabbi Rubin, Melikon. Good afternoon. Welcome. Is good to see you as a president. I'll start with mayor, but thanks. I'm here when I come here, I get lost. We're happier here. Welcome. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. and Ms. Wells as well and everybody who's here that I don't know the rest of the story. My name is Rabbi Rubin Milliken. As many of you know or aware, I filed an appeal with other tenants about the proposed project at 412 North Ocarstripe. And you have the papers there front of you. I provided what I filed. I wish to update you on that appeal. I have been informed that there would be a date setting hearing when I filed the appeal. I had expected it would be at either the last City Council meeting or today's meeting. I just learned, however, that last October, the Beverly Hills Municipal Code was changed, not by the City Council, but by the staff. Stoppill hearing date is now set by the Director of the Community Development. Staff has scheduled the hearing for June 17th for us. In the past, at the the setting, at the date setting hearings, the City Council could vary from the staff recommendation if they were mitigating circumstances or either party. Twice, within the last several years, the City Council has scheduled an appeal hearing to coincide with the received and review of PRAs and or subpoenas material. In December, I filed PRA and it was full fit several weeks ago. From December, I received it just now, recently. What have I got about 10 seconds left? Well, give me a break a little bit. Because the PRA had not been fully responsive, another PRA was filed, I have been informed that the timeline for distribution will be at the end of May. The PRA is in front of you. Staff has also advised me to file a PRA with City of Los Angeles. The code allows for a party to appeal the decision of the director for June 17th date or request a call-up. To me, that would be a petty waste of time. Do the PRAs. It is all but impossible that we will be ready at that time. On June 17, I will ask for forbearance and reseduling. Thank you for your consideration and God be with you. Thank you. Thank you very relate. In the past I filed two appeals. In both those cases I was never consulted as to the date, much less informed of the date setting hearings. The code was changed last fall, but it is not improvement, it's worse. As to the issue of PRAs, I'm still waiting for a PRA from my appeal from two years ago to be fulfilled. I feel I was purposely intentionally humiliated that hearing based upon the representation of staff that they had been more than forthcoming with the PRAs and that I was a minor. What you worked hold is we were provided with over 2,000 pages of just junk. and if I had wanted to, I could have seriously embarrassed to counsel with regards to a domestic violence charge against the developer. Effectively, you approved the wife-beater. Now, for the reason I'm here, in January, you held a study session regarding creating incentives for the Builders Remedies Projects. It will be coming to you on June 3rd. You are also direct to staff to be certain that residents around the Builders Remedies Projects be noticed about the Planning Commission hearings. What the residents received was an amorphous notice that could not be deciphered. That title is in front of you. It was completely unclear how related to them and where the Builders Remedies projects were located. As best as I can determine, there was only one public comment that received the notice and actually recognized that it was a builders' room be project next door. When a resident receives a public notice listing a specific property, they will respond if impacted. At the Planning Commission meeting, I urged the Commission to recommend to the council that cover letter be sent along with the notice to the affected residents explaining how the proposed Builders Remembrance could impact them by making specific reference to the location of the Builders Remembrance Projects that are within 500 feet. I repeat the suggestion today for the June 3rd hearing. If you want public input you need to inform about what it's about. Thank you. Thank you very much. I'm going to ask our assistant city manager to take note of that please. Thank you. Yes we have noted. All right do we have any other public comments? We do not have any more non-agent and Iized public comments. Thank you very much. So now We're going to Item number one traffic and parking commission interview panel report My med Good afternoon mayor members of the council whom I med your city clerk I am here this afternoon to provide you with an update from the Traffic and Parking Commission interview panel. They were composed of council member Lester Friedman, council member Craig Corman, the traffic and parking commission chair Karen Aframarhan and vice chair Hadar Geller. They met on, May 9th of this year. The panel interviewed nine applicants for one scheduled vacancy that is coming up. It is for the seat that is currently held and will be for outgoing Commissioner Sharon Ignaro. Her term is scheduled to end on June 30th of this year. The panel recommended a gentleman by the name, a resident by the name of Mr. Michael Carrick. He was recommended by them for the commission with an initial two year term, which is routine for all of our commissions. His start date, if you approve, will begin on July 1, which is right after Commissioner Ignaro leaves the commission. And he will be eligible for a reappointment to a second term of four years when that time comes forward with City Council approval and should he wish. Again, it's an option for commissioners to complete the additional four years. So again, the recommendation for this report is again based on the panels recommendations. That's City Council appoint Mr. Michael Carrick to the Traffic and Parking Commission for an initial two year term. He has cleared the city's background check. And once you approve today, should you approve today, then we will be placing a report on the consent agenda for Tuesday, June 3rd for formal approval. And that concludes my report. Great, thank you for the report. Do we have any public comments on the item? We do not. Great, would you like to give a liaison report? Sure. So, you know, we always say this and I will say at this time, two, three-fold, that the pool of candidates that we had for this position was absolutely exceptional. When we make a recommendation as a liaison with the Layazons from the specific commission, It's really an iterative and collaborative process. We discuss many items in terms of how people will get along with the composition is of the commission, what the knowledge, expertise of the person is, and whether or not the person just really wants to be of service. and we had that in all of the person is and whether or not the person just really wants to be of service and we had that in all of the candidates that were presented to us. It was really, really a pleasure to be able to select from so many qualified people. We did feel unanimously that Mr. Michael Kerrick would be the best fit and that is why we're making that recommendation. Thank you. Anything to add? Yeah, just simply that, unless it's right, we had a lot of really good candidates. We always have good candidates. We had a lot of really good candidates. There were a number of people who could have easily filled this position. Mr. Carrick's background in urban planning and traffic planning in particular was really deep and very impressive. But we had a lot of impressive candidates. And for those who were not selected, I would really urge them all to reapply because they were so good. We got to find some place in city government for them. All right thank you very much. Council member Wells Well, I agree I think mr. Carek is an excellent choice. I'm really happy to see his name up here He has great. He has it really terrific background for to be on this commission as well He's been very involved with the city in terms of traffic and Traffic and planning in their city now and is involved and he has young children. So I'm happy to see him on this committee. And the other commission, the other thing I'd say is that you had nine candidates that you interviewed. We also on another commission interviewed and we had quite a few candidates. So it's really nice to see so many and so many qualified candidates that are applying for commissions. So thank you. Right. Thank you. I agree. I think it's wonderful that we have. I'm sorry. Did you want to add anything? I didn't have anything else to add. I just wanted to echo what my colleague said and it's exciting to see that many people in our community are trying to get involved and I would encourage them to perhaps send a letter. We could send them a letter to let them know to apply for future commission vacancies as well because if somebody is interested and they were as qualified as we see in this case, that's great. Do you need a vote on this? No, I'll be bringing it back. So if we have approval here, then I'll bring it back for a consent item and at that time you'll vote. Excellent. Thank you very much. Thanks for the report. Next, we will go to item A2. Recommendation by the Arts and Culture Commission, Leazons Vice Mayor Marish Council Member Wells to approve the proposal great elephant migration art exhibition and Beverly Gardens Park in July 2025 and we have Mr. Brown and Mr. Paulson. Good evening Mayor Nazarian and members of the City Council. No, Mr. Brown tonight, just myself, Chris Paulson, Deputy Director of Community Services. Here to provide a brief introduction on this item before I turn it over to the Elephant Family USA team. Before you tonight, which you're actually receiving right now, your printed copy, is a proposal for an art exhibit called the great elephant migration a Traveling art exhibition comprising of approximately 100 life-sized Indian elephant sculptures Along six blocks of Beverly Gardens Park from late June through early August Elephant family USA proposes to install maintain maintain, operate, and eventually remove the elephants, as well as pay for the cost of overnight security and any grass and irrigation system repairs that might be necessary. If approved an agreement with Elephant Family USA will be executed, which will also call for the donation of the artwork to the city for the duration of the exhibit. and request waiver by city council of any fees related to plan check or intermittent traffic closures for installation and removal. Additionally, the elephants would be situated to avoid interfering with the Ringo Star celebration and would be a welcome incorporation into the footprint of the July 20th Festival Beverly Hills. The Arts and Culture Commission, Leisons, Vice Mayor Mirish and Council Member Wells, received this presentation on April 29th and expressed enthusiasm for the exhibit. Council Leisons expressed some concerns for the elephant family USA team to address, which they have since done. If supported by Council this afternoon, a consent agenda item, number eight, on the formal 7 PM agenda, seeks council approval to waive all fees associated with the installation and authorizing the city manager to execute an agreement for donation, installation, maintenance, operation, and removal of the great Art Exhibit in Beverly Gardens Park. At this time, I'd like to turn it over to the Great Elephant Migration Team for their presentation. Staff will be available at the end to answer any other questions you may have. Now, I'd like to give it over to co-founders Ruth Ganesh and Fiona Humphrey. Thank you very much, Chris. Well, thank you so much. It's wonderful to be here. So we have a 10 minute, possibly, an 11 minute presentation to go through what the exhibition is, why Beverly Hills, previous installations along the migratory route and benefits, and then my co-founder Fiona will address the logistical delivery and the proposed dates and locations. So the exhibition is, as Chris mentioned, 100 life-size beautiful Indian elephants, and they are classed as both environmental art and performative art due to the nature of their movement. And they benefit 21 different human wildlife coexistence NGOs who work to benefit conflicts between humans and wild animals all over the world. The journey itself started in July last year in Newport Rhode Island and this is the rough map of the journey so far and it is a symbolic journey on behalf of all wildlife that is currently navigating a very human dominated world and crossing roads, navigating train tracks, agricultural plantations and towns and cities. But it is an incredibly positive message. Each elephant is based on a real wild elephant. It is currently alive and migrating the Nilgiri hills of southern India. And they've been made by all the different indigenous communities who live in very close proximity and navigate space with the real elephants. So much so that they have named them and know each elephant's personality. And they've made them from an invasive weed called Lantana Camera, which has taken over their habitat and pushes wildlife such as elephants and tigers into human spaces. So from every angle, it's incredibly positive and a good news story. We trialled the exhibition in London's Royal Parks in 2021 during the pandemic and had a wonderful response and we've been doing large-scale public art exhibitions for 20 years and we have never seen the quite the level of emotional response from the public as we do with this one due to the elephants looking so lifelike and evoking the same sentiment as being with the herd of real wild elephants. And this is an image of our royal presidents, their majesty's the King and Queen, with the elephants they adopted in their home in high growth. So why Beverly Hills? You're so famous, everybody wants to come here. But perhaps your less famous residence is the answer to that question. Your bobcats, your mountain lions, your coyotes, who are about to be part of the world's greatest wildlife story, which of course is the Wallace Annembourg Wildlife Crossing, which is soon due to open. And that wildlife overpassable benefit those residents of Beverly Hills by giving them safe passage when they move. And it is the biggest example in the world right now of humans attempting to create human wildlife coexistence. So that storytelling could not be a more perfect ending to this journey. We are very honored and feel ourselves very blessed to have Wallace Annanburg herself behind the migration and has given us this beautiful quote in support of the effort and we are planning for the migration to end at the Wallace Annanburg Centre for the performing arts on Santa Monica Boulevard and Fiona will speak to the location we would love to implant them in after that, which is opposite. Since we went live with the migration and declared to America through the press that we are going to take them across to the West Coast, we've had a million and one emails from people on the West Coast, so please bring them to us. But the residents of Beverly Hills have perhaps been the most vocal, and there have been a lot of letters of support, those from businesses and residents. And we have a matriarchy as well, where every single female matriarchy elephant is twinned with an elephant. And that matriarchy is shown here, some members of it. The matriarchy will be tailored to each location to promote women that really resonate with your residents and businesses and we leave a number of different elephants free for you to nominate people you yourself would like to honour. There are also tuskers so we do include men. This This is a beautiful picture of Chris Tomkins, Californian conservationist with a giant baby antita, who's also a matriarch. And these are some of the NGO partners that the elephants benefit because we sell them and all the proceeds go to different projects. So finally, from my section onto the different locations to date and the benefits to them, the journey started in July last year on Cliff Walk in Newport Road Island along the cliffs and all of the different historic homes and cultural centres that reported between 200 and 500% increase in visitor numbers to those institutions. We then went on to New York to the meat packing district where it was a very fast overnight installed to minimise interruption to traffic and businesses. And here through MasterCard data, it was reported that a 20% increase in retail activity occurred during that period, so there are great commercial benefits as well. We then went to Miami Beach for the winter in time for art Basel, where we installed them on the sand and everybody loved them, and the art world accepted them as well, and we were given a front page for the second time in three months of the New York Times re-sementing their artistic credibility. And they just enriched the people and residents and also visitors to that exhibit who had an overwhelming reaction to them in every possible way. And then finally in Houston, we've just departed Houston, which is probably the most similar to the location we were proposing. We had a partnership with the park and the Conservancy there, Herman Park. And the main herd was located in the park. And then they wanted to form lots of further friendships or enrich their friendships with different entities in and around the parks, such as the Science Museum and the Natural History Museum, so they sprinkled a few elephants between those places and created greater relationships. So there are ecological benefits from this exhibition for your wildlife. There is opportunity to benefit your museums and cultural centres in rich, the artistic world of your residents and visitors, increase retail opportunities for your businesses, and perhaps most importantly, tell a new story to the world. We believe that the press to date indicates that this will really be the climatic moment, press-wise for the migration as it will be the finishing line, and tell a very good new story that really promotes ecological healing and showcases what California is doing to engender as much ecological healing and coexistence as possible. And here's a few examples of the press. We've been thrilled about it. We've never known anything like it. I'll now pass on to Fiona. Thanks, Ruth. So as Ruth mentioned we have elephants are based on real life elephants so here you can see a table of size and scale of them and each elephant comes with an integrated foot mount and that is how we secure them to the grass. You can see an image here. We then use ground anchor shackles and anchors and depending on the firmness of the soil will impact how many anchors we use and we're already in conversations with the building department and engineers here in the city to make sure that that's all squared away. So in terms of exhibit considerations, starting with storytelling. So from a logistics and support standpoint, we have five, what we call billboards, but there are sort of six feet frames, as you can see here, cladded in Lantanas are very much in keeping with the exhibition. Those are where we put our core messages. But we also have smaller a-frames spread throughout the exhibition that gives the safety messages and then individually we have plaques next to each elephant with the name and also the twin twin matriarch and as Ruth said spots for anyone that you want to honour as well with that. We also have a really fun app that we have with the exhibition as well, so a great family opportunity where essentially a scavenger hunt gives more information about the herd as well. And then daily we have an exhibition manager on site who is then supported by volunteers. So when it says information tent it's, think of it as one of those pop-up canopies, you know, the smaller ones. And really the purpose of the volunteers is to give information about the exhibition, but also there's a safety element there making sure people don't sit on trunks or pulltails or get themselves into any tricky situations. So on to safety, we have agreed to provide two security guards from 6pm to 8. at 6 p.m. to 8 a.m. daily, who will be roaming the exhibition, and then obviously we have our volunteers during the day, and we've already been in contact with Patricia Sutter, the county fire chief, just in terms of any fire elements that we need to consider. I think Chris alluded to this. We have agreed for the impact on the grass and irrigation that if anything happens through the course of the exhibition, we have it in our budgets to be able to replenish that and we're in process with engineering at the moment with the city. We haven't had any sculpture damage up to date in any of the places that we've been but we do have someone in our team that can do small fixes and if anything major happens we would just suggest that we move that specific sculpture off site so it doesn't cause any further problems. So our proposed dates for the live exhibition would be the first of July through to the first of August with load in a few days prior to that and obviously de-install at the end and we've in each location have done a community preview. It's a really nice moment to really engage with the community. So we would suggest to do that here. We would love and have a vision for this ending point to be very similar to the elephants in the wild and create a very iconic image here for Beverly Hills that will long live in the public minds and really have as wild elephants would do in their own migrations walk trunk to tail. So we've suggested a composition where the herd is flanked by tuskers at the front and the back as they would in the wild. And then we have, as you can see from pages 25 to 30, which I'll flick through, a composition of having them walking trunk to tail throughout the parks, which I think would be really beautiful for everyone to be walking down and just taking them all in. As regards to load in and load out, we're really fortunate to have two major logistics partners working with us on this project that have been with us since day one, Seco logistics, a US firm, who are global logistics and supply chain, as well as IBI, who are fine art handler, and they are truly experts along with our logistics team as well. Each of the elephants come in on a 40-foot trailer, about 10 to 12 come through, and then they get taken off by fork lifts. We've done this in many different ways in the cities that we've been in so far, so we really adapt and are flexible to what the Beverly Hills would need in terms of our loadout plan. So we've done overnight installs, we've done them through in a day, so we would work with the police and traffic departments to be able to figure out what makes sense for you. We would suggest using the side streets, it takes us about 45 minutes to offload each trailer, we would then pen the elephants into a secure spot and then that trailer would leave so it wouldn't congest the traffic any further and then we would have an opportunity to place those elephants before the next trailer came in. And so our commitment to you, you'll be pleased to hear this is the final slide. We really hope that you can, you know, this has been a dream of ours and I think with the the partnership with Wallace and the Wallace-Annenberg Centre for Performing Art, we really feel like this is a real moment of collaboration. We bring this exhibition to you at zero cost to the city, and really with minimal team time from Beverly Hills perspective, we have a robust team of eight on our side, plus our extended team with all our logistics. So we hope that we will absolutely be able to pick up all the heavy lifting. So thank you very much for your consideration and here to answer any questions that you might have. Thank you. Great, thank you very much, Fiona. Appreciate the report from both of you. It sounds very exciting. Do we have any public comments before we go to the liaison report? Yes, we have two. So the first one, I have Alexandra Nahita. Hi, welcome. Council members, thank you. Thank you for that beautiful presentation, so thorough and warm my heart. I am a local artist here in Beverly Hills, one of my pieces stands right in front of City Hall, my big bronze love anatomy. I am absolutely so amazed and impressed with how much advocating this city does for the arts, how much you champion the arts, how much you uplift the artists and projects like this. I was also part of Song Sing for Hope, a community project that was so welcomed and what did it do. It engaged families, children, visitors, all sorts of people, and created conversation that perhaps would otherwise get overlooked. In this case, these beautiful elephants that deserve our love and our attention and what better way to galvanize some kind of change and hopefully community engagement. Then through the arts, I've always been a big supporter in the power that the arts have for social engagement and social advocacy. So I think this is the ultimate example of that. And so I'm here showing my support and hope that this brings a lot of joy to our entire community. Thank you for your time. Thank you very much. Next I have Dana Yarger. Did I say your name correctly? Sorry. Correct. Madam Mayor, Council, staff, thank you for the opportunity. I would say that do you remember the community of angel sculptures 20 years ago? Alexander, I think, was 13 years older so when she completed the sculpture for that. So she helped us with the project in Singapore. I, sure I was brief. I wrote out my message. I am the director of another Elephant Related Organization called Elephant Family. We're based in Amsterdam, our foundation. We share the same foundation benefit as an elephant family. But I just wanna encourage sheer to accept the offer, I think you will, to host the elephant migration. A represent elephant-prayed international and Amsterdam based social enterprise company that for more than 15 years has produced public art exhibitions of artfully painted and decorated elephant statues in over 20 countries in major cities around the world and support of elephant welfare and contributions to elephant family. Our North American headquarters is Coast Bites and Dana Point where I live. We look forward to promoting this exhibition in Beverly Hills through our contacts in the region as well as cities and organizations throughout the United States, including our hundreds of individual artists and international celebrities and thousands of advocates and followers. Our Europe-based media office will celebrate the great elephant migration, events and Beverly Hills with our international exhibition friends throughout Europe, as well as leading cities in Asia, South America, and the Middle East. These are volunteering, offering offering efforts on our part. They're dedicated to health and families, mission as well as supporting Beverly Hills international reputation of arts, culture and humanity, as well as its educational economic benefits and pranks up. It's a fun experience. I'm leaving this behind. This is the exhibition from 2010, which I think on page 6 you'll see a picture of a route. This is our collaborative exhibition from many years ago. I can present it to the city and if you give it to the library. All right. Thank you very much. Yes, please. Thank you. So we have a written letter from you. I think it was basically what you just shared with us. All right, great. Are there any other public comments? There are no public comments for, no additional public comments for this item. We had some letters in our packet that I'm sure that all of my colleagues read. Can we get a liaison report? Council Member Wells. Thank you very much. Well, this is just really thrilling, I think, for us in Beverly Hills to have this opportunity. Visually, it's really going to be stunning to see 100 life-size elephants of the different sizes, you know, together in masks like that. It's unique. It'll be unique to Beverly Hills. And it's going to be in July, which is a really great time in terms of tourism. And bringing people to Beverly Hills, it's a great opportunity for people to come into Beverly Hills to be able to see that. It also aligns with our arts and culture music festival during that time in the same park. It's the same timing as the July parks make life great, I think is the terminology for that. So it's another thing that this is really supporting because it's in one of our parks. In addition to that, it's aligned with Wallace-Anneberg, of course, and with regards to what the benefit of it is in terms of coexistence with wildlife and really protecting the existence of elephants not just in India but worldwide. I think it's really an important issue to support and aligns with us as a city. We also talked about, we brought up some issues about does it interfere at all with the multicultural effects. to support and aligns with us as a city. We also talked about, we brought up some issues about, does it interfere at all with the multicultural festival, the Ringo star birthday, and we clarified that that was not going to be an issue with regards to the exhibit happening there and those events. We also talked about, in terms of any danger, in terms of how they're installed, and we want to do those issues as well. We talked about how some of the elephants are assigned to different matriarchs, and I love that you've accommodated us and really tailoring it to our city, and I love the idea of potentially assigning some local matriarchs to those. I think that's a great idea as well. It's an opportunity for the hotels in CVB to promote this at their hotels and let people know that this is here. And if you were thinking of coming in June, July or August, that you should come in July because they'll be able to see this. And when we look back at the press that this has received, like in New York and otherwise it's received a ton of press and really it's really dramatic and impactful to press. It's not just a small blur because when they typically will feature the elephants which is really makes a statement and catches your attention. So I think that's another wonderful thing. And then lastly, with regards to education, there is an educational component to this, which will be happening during at the exhibit, but we can also partner with the library and any other programs going on in the summer where it's appropriate to bring that education component there as well. So there's a lot of great things about this program and I personally am very excited about it. I've been in Africa, I've seen the elephants there and many times and I just think the impact that this exhibit will have as a public art display will be really something. So thank you. Right, thank you very much,ellon. Thank you. Well you had me at Blowhorn. I'm hugely supportive of the migration exhibit but I think it's great. I think it's artistic and fun. What more can we want? What more can we ask for? Very appreciative that you brought it to us. And we certainly wanted here in the city. So I would have just two comments, and just to improve the matter. I was looking at where you currently plan on placing the elephants in our parks. So a couple things on the proposed location between North Road Day, O drive and North Bradley Drive, you have an extra large adult male tussquer, it's maybe very close to an existing sculpture, and you may not want it so close to that. So that's the first thing. The second thing is more global. I think this is so great. I would like to move it closer to the business triangle. I know some of the elephants start on the other side of Alpine, and then you have Alpine directsford, and it sort of tapers off between Crescent and Canon and Canon and Beverly. I'd like to see them not taper off there. I'd like to see them, and I know there may have been some issues with our festival, our cultural festival, and maybe the Ringelstar concert. But I think those things can work around this. I'd rather see more of the elephants closer to the heart of the city, which is where I think they belong. So that's just my two cents, because I think it's such a great exhibition that I just want to highlight it and really give it the platform it deserves. But thank you very much for bringing it to us. I really do appreciate it. And I know the city is going to as well. Thank you. Thank you. If I could ask either a misgainer or a misumphrey, just to come forward for a moment, just can you tell me a little bit about elephant family, USA, and what its mission is and its organization and what else it does other than the great elephant migration. Yes, with pleasure. Our mission is to harness the power of creativity and storytelling to inspire and enable the human race to share space with wildlife. So we do public art exhibitions and all of the proceeds from those public art exhibitions benefit both Indian elephants but also tigers. It could be bison in America. We've worked with many, many different NGOs across many different habitats and countries and species. So it can be resolving, it's helping create, say, elephant corridors between fragments of forest. So they have free passage. We support warning systems that help human beings know if there's a dangerous or challenging animal close to them so they're able to more effectively share space and minimise conflicts. And just educate anything that helps educate people about how to live in close proximity with animals because the human and animal world is overlapping more and more these days. So that's our remit. We started 10 years ago, but we sadly lost our founder, who is our queen's late brother, and we've actually been, this is our comeback plan. So we've done a lot of smaller projects, but this is the, in the last year is when we've really expanded our remit to these 21 different partners in different geographies. So we also work with Lions in Kenya and we have, we support Lion Guardians, which are Masai Warriors that help, help the human population in those habitats. No one lions are close, or they do sort of monitor and always know where they are, so they help reinforce boomers, for example, where people are living to make sure the lions can't get in when they're hungry to grab cattle, those sorts of projects. Thank you. Very interesting that you just mentioned the Masai in Kenya, because I had the opportunity with, took my family there, my children and grandchildren, it was a wonderful trip to Kenya. We were in the Masai area, went to a Masai village, and very interesting lifestyle. It was really quite an experience, and we did get to see all of the animals there in their natural habitat. And that the messiah warriors who really tended to a lot of the wildlife in the area, making sure that they're all preserved. And we did get to see migration of elephants, a lot of elephants, and it's really amazing. I mean, I see there's a hundred, I think you have a hundred sculptures, but how magnificent it is when you see the live animals just going usually to a watering hole or going into a place where they're going to rest in the evening. So it's very exciting. I think this is going to give people an opportunity who haven't seen the live animals to at least experience the thought of what it would be like to be there. And I am fully, fully supportive of this and thank you for bringing it to us. Thank you, Councillor Friedman, and I'd like you to know that we are driving the elephants in trucks from Jackson Hole into LA in a giant convoy and we have four mastai warriors from the Lion Guardians also part of that convoy, so I'd love to reconnect you with those people. Please, please. Fantastic. We'd love that. Okay, thank you, and I'm fully supportive. All right, great. Thank you much. So I too am supportive, although I do have a few questions. So thank you for bringing this to Beverly Hills. I think there's going to be a great way to increase awareness for important issues that we're facing. And it's interesting that you mentioned our basil because that's something that we recently went on a trip to Miami. And we were talking about ways to bring new energy and installations to our city. So what a perfect pairing to be able to celebrate that. There was one question that I had because I understand that all of the fees, you've agreed to pay all of the fees. But there was a portion that said that the city manager will waive the fees in the report. Yes, I believe we're asking for the council to waive related fees that might be applied aside from the rental of security and the reimbursement of grass and irrigation damage. So those could include our engineering and plan check fees. So I've been working with Patty Betancourt and our special events team and building and engineering. So it would be those reviews and then if there are any intermittent traffic closures that would be required as the trucks are offloading, those would be the fees that we would be looking to have the council wave. Do we have any numbers on that? It'd be very difficult in talking to Patty. We kind of calculated that a permit based on the way our permits are structured and based on the information provided by this exhibition would be about $25,000 the way we estimate our permit calculations. So that would be the biggest fee that we'd be seeking to ask council to waive. And if I may, Mayor, I just want to make, I think one clarification with Mr. Paulson is the cost of turf restoration and the irrigation repair, I believe that is not being borne by the city. No, no, definitely not. That is, I think it was stated that we were reimbursing for that. So I just want to make that clear. Correct. They are reimbursing. They are reimbursing for all of the costs of the installation any repair to landscaping or irrigation that needs to be done as a result. What we would be waving would be essentially the permit fees and any like plan review type fees associated with it. So really our soft costs. That's correct. All right. I think it would be helpful if we had those numbers in the report for future. This is going to be at the same time as Ringo Starr's birthday and the music festival that we're having in the parks. I think it'll be a great addition to that. And you mentioned the storytelling. I think the wildlife crossing safe passage bridge is really something remarkable and kind of tying it all in to that would be fantastic as far as social engagement and social advocacy. You know, it would be interesting if one of these elephants was named Beverly. I mean, I think that that's something perhaps you could look at. All right, I think you have consensus. We're all in agreement. I just wanted to, can I, any reaction to my suggestion that we try to bring the migration closer to the, the Beverly Gardens Park where the Lille Pond is? I mean, so we sort of move everything one block over to get more of the elephants in the heart of the city. I'm personally, I'm okay with that. I think that they were planning around the events and the logistics around what the exhibit would look like. So, but certainly I think that's the goal is to have every prominent. Would it be possible to put it on the grass area by the sidewalk? Or should it be? So some of it is. I mean, one of the pieces is like. Well, it's on the corners, but. So, Council, I think what we can do is we can work with our arts and culture team that's planning festival Beverly Hills. They are not going to be using both blocks fully, so that will give us opportunity to include a few more in this area in front of the lily pond. Or also in this area on the block furthest to the west. And also in that block too, I think we could put more there between North caress and North Can. Correct. Yes so these three blocks we can increase. I still think we it would probably make the most sense to have this block and this block be the heaviest concentration but we can certainly work with the team to incorporate more into the three main blocks of Beverly Gardens Park. So there's a hundred elephants but there's only 30 that are coming to Beverly Hills. Is that right? All 100. All 100. Yes. Where are they going to go after they're here? I'm hopefully going to find forever homes. Yes. And I don't know. We've had a lot of emails from all over America, so we might carry on the journey. But this will never be one long journey like this. Okay. All right. So if I just may comment, I think what, and I'm certainly in agreement with it, if there is an artistic way and a practical way to move them closer, I think that we would all like to see that, but I think that artistically you want to have a set up that is aesthetically pleasing and of course I would certainly defer to that, but the idea would be to get them as close as we can so that everybody can see it. Yeah, I'm not suggesting that we tell you where to put them. I'm suggesting that you work with your design to move in closer to the business area? Very grateful for that suggestion and we'd love that to happen. It would also mean that there would be much greater relationship between the Wallace-Anne Berg Centre as well. I agree with that. Yes. Thank you. All right. Great. Well, thank you. I think you have direction. All right. We're moving to item number three. Introduction of the formation of a community facilities district in connection with the one Beverly development and FMIR welcome Good afternoon honorable mayor and members of the city council Today we're here to introduce the concept of community facilities districts or CFDs. These are Mellow Ruse districts authorized by state law that allow us to fund specific public improvements in certain services through special taxes in a defined area. This discussion is prompted by the One Beverly Hills Project. The developer is interested in using a CFD to help finance significant public improvements related to the development, ranging from off-site infrastructure and utility relocations, as well as the publicly accessible botanical gardens. It's been over two decades since the city last formed a CFD. Our last one was established in 2002 and successfully funded key streetscape enhancements in the business triangle. Because so much time has passed, today's session is an important opportunity to reintroduce this financing tool before any formal proposals to form a new CFD might come forward. We should also note the developer is covering the city's consultant costs related to evaluating this potential tool. So to detail what CFDs are, how they function, what they can fund, and the formation process. We have our bond council with us, and I'd like to introduce Mr. Brian Forbath from the firm Straddling. He will lead the presentation today and is available to answer questions. And we also have representatives from the developer to the extent there are questions specific to them. And with that, I'll turn it over to Mr. Forbath. Good afternoon, Madam Mayor. Council members, Brian Foyarth from Shalanyaka. Thank you for the opportunity to be here with you today. I've had the pleasure of working with the city for a long period of time, probably over 15 or 16 years in various roles. This is the first time I've been here in person in a long time, so thank you for the opportunity to be here. I'm a shareholder of the firm, Shalanyaka, Carlson R, President of the firm. And I specialize solely in municipal finance. So I help cities, county, school districts, state of California, and other large issuers issue bonds in the municipal market. And one of the aspects that I do a lot of is land-scured financing. So let me, there we go. So what is land-scured financing? When we talk about land-scured financing, we're generally talking about either an assessment district or a community facilities district. And those are used to finance new development. They finance backbone infrastructure, including streets, parks, water, wastewater utilities, curbs gutters, et cetera. Due to some flexibility that we'll talk about, CFDs are predominantly used to finance new development. Assessment districts, which I think a lot of us are familiar with the concept of getting an assessment or assessment districts, are generally used in connection with older residential neighborhoods. And usually for aspects like underground and overhead utilities in beach communities, I live in Newport Beach and there's a lot of underground and overhead utilities there and in Manhattan Beach and other areas. And the difference between the CFD and assessment district is that a CFD is a special tax and an assessment district is an assessment. And underneath the Constitution there's differences in terms of voting where an assessment district is a 50 plus one where each Property or votes based on the amount of your assessment where a CFD is a special tax that requires a two-third vote which we'll talk about in a minute so By establishing a CFD underneath the Miller-Rusak the city creates a separate legal entity Where you all will serve as the legislative body of that entity. You will be the legislative body of CFD 2025-1 or whatever it is that we call it. Because there are no, in the one Beverly Hills situation, there are no residents that reside within the boundaries of that territory. a landowner, where the landowners would vote to put a special tax on their property up to certain maximum rates, and then they would also approve and not to exceed bonded indebtedness limit. And those bonds would eventually be issued, subject to certain conditions, to produce a lump sum of money to then reimburse or pay for the acquisition of certain public improvements that the CFD would finance. Importantly, the bonds are limited obligations of the CFD. They're payable only from the special taxes levied on the taxable property in the CFD. And again, that will require a two-thirds vote of the landowners or the registered voters depending on the circumstances. And most importantly, the city itself has no financial obligation with respect to the bonds. Bondowners will look only to the special taxes on the property. If the property doesn't pay the special taxes, the city would be obligated to foreclose on the property, sell the property to the benefit of the bond owners. So what can a CFD finance? Generally it's public capital improvements that have a useful life of five years or more. Those can be soft costs and hard costs. When I say soft costs, design, engineering, planning costs associated with those improvements. They can also finance services like many cities around the state have services CFDs where the finance, the cost of police, fire, fire, public safety, maintenance of parks and streetscapes. And the CFD that's being proposed for one, Beverly Hills would have a service component to it that would eventually provide maintenance services for portions of Wilshire and Santa Monica Boulevard. The CFD also pays for ongoing administrative costs of staff and legal counsel and consultants associated with maintaining and operating the CFD to make sure bonds get paid. And then again, the public agency must generally own the public capital improvements that are to be financed when completed. So CFDs again usually finance the backbone infrastructure. They do the street improvements, the water sewer, storm drains, parks, library schools, et cetera. They can also finance development impact fees that are used to pay for these sort of improvements. So if there's development impact fees for parks, et cetera, those fees can be financed so long as the city uses that money that they get from the bonds to actually build the parks with those bond proceeds. So a little bit about the formation timeframe here and we're bringing this to you today as a workshop because the developers is anxious to have the CFD move forward. And I think the process is that we're going to likely come back to you sometime the summer, maybe soon as July with initial steps of it. So I wanted to give a quick overview of what the formation process looks like. So depending on whether it's a landowner vote, which or a registered voter vote, in this case, it'll be a landowner election. It takes about three to six months to form a CFD and it requires an election that will be held at a city council meeting The at that election There will be approved what we call a rate and method of importionment of a special tax and that rate and method of Portion and special tax is essentially the rules for how the CFD gets administered It It sets the maximum amount of tax rates. Maximum amount of tax can be leveled on a specific type of property. So in other words, a hotel property could have a commercial property, could have a higher tax than a residential unit or a hotel room. It also sets forth whether or not the special taxes will escalate or if they'll stay flat over the term of the deal. It's important to know that normally speaking, municipal bonds have a term of 30 years. The CFD taxes could go out longer than 30 years. And at some point, the council will have the discretion whether or not to continue leaving those special taxes or stop leaving those taxes after the term of the bonds. That said, as the developer is intending to finance certain, as I mentioned before, certain maintenance and landscaping and streetscaping on Wilshire and Santa Monica Boulevard, there's a likelihood that the tax will continue for some period of time after the bonds are paid off. And again, the taxes are collected on the property tax bill. So the developer will get a property tax bill with their general 1% property taxes like we all do. And then there'll be a line item on that property tax bill for each APN that'll say here's the amount that you pay for CFD 2025, Dash 1 and so do your Beverly Hills. It shows up on there. The taxes, because it's a special tax and not an assessment, the special taxes can be based on any reasonable basis. It doesn't have to be based on a special benefit. And so because of that, it allows a lot of flexibility in terms of how the taxes are structured between what's levied on residential, what's levied on the hotel, what's levied on commercial, and it allows the developer and the city to determine sort of not only what's good for marketing the property, because you don't want to overburden certain property and underburden others, but it so provides a lot of flexibility to that into the marketplace. So the usual sequence of events of how the skits started is the property owner will submit a petition to the city requesting it to form a CFD. Which we have drafts of to the developer currently. The city will engage a CFD financing team which the city has already done. And then the first formal action by the city council will be adoption of what we call resolutions of intention. and there will be two different resolutions of attention. One, resolution of intention to form the CFD and levied the special tax. And then a second resolution of intention that states your intention to issue bonded indebtedness to pay for the public infrastructure that's required for the CFD. Those resolutions of intention will call for a public hearing to be held at least 30 days later. And then at that following the conclusion of that public hearing, there'll be two more resolutions that I've come before you. And those will be to actually form the CFD and call an election on the approval of the special tax rates. And then also a resolution that will determine the necessity to issue bonds to pay for the public improvement. Proofments and that will cause another election that will be consolidated with the first for a not to exceed bonded indebtedness limit. After those resolutions are adopted, the proper owner will be requested to waive certain election law proceedings. That will allow the election to be held immediately after the conclusion of the public hearing of the adoption of those resolutions that the city clerk would conduct. The property will have voted in advance. They'll get one vote for each acre or portion in the own in the property. And at the conclusion of the election, the city would then certify the election results and introduce and then eventually enact an ordinance authorizing the levy of the special tax. And then that gets conveyed to the county who will then place the tax on the tax rolls in the coming years. And I'm sorry, and there's a notice of special tax lien get gets recorded on the property. So that's like the security for the deal that it's on the property. And then further down the line, the developer will undoubtedly come back to the City Council and request for you all to issue bonds to pay for the acquire the public infrastructure. The bonds will be paid for from the special taxes as we've discussed. And then the city will administer the CFD until those bonds mature. So this is getting a little ahead of ourselves here, cuz I think the developers not intending to come back to the city to request the issuance of bonds for some period of time until the project is much farther along than what it is. But when that time comes, the financing team would prepare all the legal and financing documents that are required, like there's a bond perspective, much as like an offering perspective for stocks, like it's prepared. All those documents will get presented to the City Council with an opportunity to review and comment there on. And then you all would have a vote on whether to prove the issuance of the bonds or not. And then those bonds would be sold to a municipal bond underwriter, like a Steeple Nicholas, a B of A, Wells Fargo, etc. That would then go offer and sell those bonds out to the public to individual investors. The interest rates on the bonds would be determined at that time in connection with the public sale and offering of the bonds to the public. So again, I think I've sort of covered this already. These are the documents that the city council would be asked to approve at that later date. And then so what happens after the bonds are issued? So once the bonds are issued, we'll have $50 million, $100 million, $200 million, held by a bond trustee on behalf of the city. And then at that point in time, the developer would come and requisition to have the bond proceeds released to them, to reimburse them for the public improvements that they've done that the city is acquiring from them. And then the property owners will pay the special taxes for death service on the bonds and ongoing services. So the reimbursement back to the developer will be handled through what we call an acquisition agreement that will be brought to you for approval in connection with the formation of the CFD. The acquisition agreement is the contract between the city and the developer that sets forth the terms and conditions pursuant to which the city is going to agree to acquire the public infrastructure from the developer. And so we'll work hand in hand with the public works department to make sure that it has all of the public works requirements in terms of bidding, notice, inspection, all the sorts of stuff, bonding, turnover of, you know, deeds of trust, the title of the property or appropriate easements, etc., and connection of all the property. So that'll all be set forth in the acquisition agreement that will be approved by, or that will seek approval by the council. So again, I think I mentioned this a little bit, but the city has, myself, my firms, bond council, the city, fieldman roll up and associates is the city's municipal advisor, and they'll be, they've been working with the city along the way, and they'll be is the city's municipal advisor and they'll be, they've been working with the city along the way and they'll be with the city when it comes time to issue bonds and form the CFD. Goodwin Consulting Group is the city's special tax consultant and they've been working with the developer. As you imagine, you've all seen the project. It's a very complicated project in terms of the parcelization of the project and you know, airspace parcels that don't exist and how we're going to tax condos that are seven stories up etc. And so good when consulting has been working and they're very experienced this have been working with the developer and our and my team and the city's team in developing the rate and method of a portion of the special tax that'll determine how all these taxes work and get placed on the role. Eventually there'll be a praiserraiser at some point in time when we go to issue bonds that will praise the property. The city has CFD goals and policies that require, I think it's a four to one value to lean before bonds can be issued. So in other words, the value of the property has to be at least four times the amount of the bonds that are to be issued. And then also the city has an underwriter that they brought on board at Steeple Nicholas. And then so once the bonds are issued, there are certain ongoing administrative matters. The city will be required to handle. The special taxes have to get placed on the roll each year, so there'll be a resolution that'll come to you annually. I think you probably have that currently for the business triangle deal that that levies the taxes each year. And then there'll be certain ongoing filing information that the city and its consultants will need to do to update information to investors to provide certain annual communications to investors on the bonds, which you currently do in connection with their outstanding bonds. And I know I've covered a lot and I went through that quickly, but I'm more than happy to answer any questions you all have today, and there will be other opportunities when we come back with the resolution of attention to answer more questions if something comes to you after today's meeting. Thank you, Mr. Forbeth. Do we have any public comment on this item? We do not have any public comments for this item Okay, great. So I'm going to go to councilmember Wells Okay, thank you very much. Thank you for your presentation um Well, this um is a lot of information to absorb very quickly um, I have a question the um was this intention was this planned all along to do a CFD for this? This may be a question for our staff. Has it been the intention to always do a CFD for this portion of the development? CFD was not originally contemplated when the project was reviewed and granted the entitlements, the developer approached city staff at some point last year indicating that they would have interest in pursuing a CFD but that was the first time it arose. And then with regard to your timeline, that reaching out to the city in November, would that be considered the request part of that and then now we we're in the second section. So the request to initiate and then that's when you assembled this team that's been working over the last time. That's correct, yeah. I think that's correct. The developer, I believe, approached the city sometime in the fall, the city acquired. I was already working for the city and it's aspects where they formally got the team together. And then again, the developer will formally submit a petition to you all that signed in connection with the resolution of intention when it's presented. I see. So we haven't had the formal petition yet. This is kind of a precursor to that. Correct, yes. Okay, I just wanted to clarify that. What do you, I'm sure it's not, you're still in the development phase of this, but what is the estimated bond amount, the total bond amount? I believe we're going to ask for a not to exceed 400 million, David. 250 million. 250 million, 250 million. Net proceeds. But to get 200, just to be clear, to get 250 million of net proceeds, the number that you're going to see on the resolution of intention is going to be a higher number than that. I think we're still developing that, but it's going to be 300 or 350 million probably. closer to the 400 number. And then is that a percentage of that of the total, I mean, the cost of the development. Do you evaluate it that way at all? So when the city goes to issue a municipal bonds, there's going to be an underwriting period, the city wants to be out there in the market and issuing securities that are going to pay, right? The last thing anybody wants to have is bonds that go into fault, etc. And so there will be an underwriting portion of this and the city has a CFD goals and policies that you've adopted way back when, which we're going to bring back to you with a minor amendment to it that I believe requires, as I mentioned, at least a four to one value to lean. So if we're going to issue $200 million in bonds, the project as constructed, assuming the $200 million improvements for financing, has to be at least $800 million of value based on an appraisal. And what's the time period that you expect this to be 30 years? The bonds will be 30 years. And there could be a chance that we might, depending on the developer's plans, issue the bonds in one or more series. In other words, there could be an initial series for some amount and then year or two later when development continues a subsequent series. But the authorization would be one or more series up to the 400 million. What other number is that we authorize. And again, it would always come back to the council for the approval of the issuance of the bonds. If with regard to establishing a CFD, does the city have the same rights and control over the development, how the development is the process of the development in terms of its quality in terms of the planning of it, like if you're talking about infrastructure or street and roads and utilities. So the CFD is really just a financing mechanism. It's just a financing mechanism. The project's governed by a development agreement, which others in the room are more better to speak out than I am, but it doesn't move aside or set aside any provisions of the development agreement. The developer will require to comply with everything that's been previously agreed to and Ryan, if yes. Okay. And that's correct. All the scope of the development, the conditions of approval, mitigation measures are all already governed within the entitlements. The CFD is really just the financing mechanism. You don't give up anything by creating that CFD. That's correct. regard to to, at the time that you issue the bonds, should the bonds default? What is the risk to the city at that point? So there's not a financial impact to the city at that point. I mean, is there a potential reputational risk that the city has this large project that's defaulted potentially, yes. But there's no obligation at all for the city financially to step in and pay debt service to bond owners. When you purchase a bond, it's the disclosure is perfectly clear and everything you're secured solely by a special tax on the property. If the developer fails to pay that special tax, there will be a covenant from the city that says, we will pursue foreclosure proceedings against this property to have it sold and the proceeds will then be used to pay off the debt service on the bonds. So in that scenario, there's a foreclosure, I'm just taking the worst case scenario, obviously. What does that do to property values or for the city? What do they kind of indirect hit that the city may take under that scenario? You know, I would be speculation to say what the property values of a foreclosure sale would have. I'm not sure I know. I don't know if the city of Theratine has any concept of aspect of that. But I think it's difficult to predict what circumstances would cause the bankruptcy at this time. And the impacts on the city could vary widely depending on what really caused that bankruptcy. Sometimes those circumstances will have affected the whole city. So- That's what I mean. Is it having an impact on that? Well, no, I'm saying whatever caused the- What's happening there is happening elsewhere? Exactly. Got it. Another question I have is when we talk about shared utilities versus say doing the park or those improvements with regard to shared utilities who maintains that control Is that the CFD has control over there? So the CFD again doesn't own anything. It's all it just is is a financing mechanism for the city. All the city will be the owner of all of the public utilities and all the public improvements, unless there's much Baltimore District or SoCal at a center, somebody owns the other facilities. So there'll be no difference with the fact that it's financed through the CFD or if the developer funded in terms of control of those aspects. Is there ever an issue in when you do CFDs where there's a people feel that there's an inequity of the services or public services to a CFD versus the rest of the city? Interesting question. And I think the inequity that most often comes up in terms of the services CFD is the fact, like the services CFD, I have a lot of clients in sort of more developing areas than Beverly Hills or Los Angeles where they're out in the island empire and so forth where those cities get a very small share of property tax revenues. And so they require essentially any new development to annex into a public services CFD to pay for their share of cops and firefighters that are not supported by their share of the property taxes. So I've heard that residents in those neighborhoods were their paying a tax. That's higher than what existing residents pay, feel some level of inequity. But here in the situation, again, the property, the owners of property here, will be paying significant levels of special taxes to finance the botanical guards, Murr Griffin, and these other improvements that are going to be public improvements open for the public. Well, once the bond is repaid, then I guess you've alluded to it a little bit in terms of extending, I guess, the tax that RMA tax, if I'm saying that correctly. No, he got that perfectly. Forgive me if I'm wrong. Yeah, thank you. But so how do we ensure in terms of the maintenance of the gardens of all those other areas, once the bond is been repaid? And how do you determine what those costs are and the escalation of that and the maintenance and maintaining that infrastructure. Yes, so as currently planned and again, I asked somebody from the city who's more knowledgeable in this topic than I am, the development agreement requires the developer to maintain all of those improvements themselves right now. I think believe through the HOA and I I think the developer was planning or hoping that, once the bonds are paid off and the property owners are paying less taxes, that rather than having the HOA burden with all of these maintenance costs, that's some of the maintenance costs, not all of it, but some of the maintenance costs attributable to the landscape, streetscaping on Santa Machablevard and and Wilshire Brawlvard would be switched from the HOA to the CFD to pay those costs. That answers your question. How does the CFD get the funding to pay those costs after the bond? They will continue to levy the special taxes. For maintenance. For maintenance, yes. Yeah. Yeah. Sorry, I just have a few more questions. I haven't encountered one of these before. So with the RMA, you talk about the maximum annual tax rate that gets set when you're actually forming the CFD and the potential escalation or when that escalation can occur and that there's flexibility. How far out does that go? Do you write it in at that time or because you can't really predict it? So I'm going to make it. Who helps to set that once it's been done? I'm going to make up numbers because I don't have the draft of the proposed or rate method here in front of me. But let's just say a condo. It's a square foot tax on a condo mini-amps. Let's just keep it easy. It says a 20,000 square foot condo. It's a dollar of foot. So it's $20,000 annually on that property. That's the maximum tax. That tax then would go up 2% each year for the life of the tax. So each year goes up 2%, 2%, 2%. And you can never levy more on that property than that maximum tax. You can always levy less, but you can't levy more. And so what will happen is when the city goes and issues debt for the project, they'll have a debt service number. And so that'll be what's what we call the special tax requirement. Is the debt service number plus what's required to pay for administrative expenses of the CFD, so the city's not out of pocket on paying any of the consultants, the county costs, etc. And that becomes the special tax requirement. That special tax requirement is always less than the maximum tax on a combined basis. We sell the bonds where there has to be what we call 110% coverage. The maximum tax versus the special tax requirement of the debt service on the bonds. And then it can extend beyond that, the special. Yeah, it can extend beyond the term of the bonds. Should the City Council desire, should the future City Council and 35 years from now decide that they want to terminate or no longer levied the special tax, they could decide to do that. And with regard to the city issuing the bond administering that reporting all of the costs that the city incurs to do that you put that into the fees for the RMA tax. Correct, yeah that gets paid that they're what will happen is there's before debt service even gets paid there'll be what we call priority administrative expenses. And we haven't come up with this number yet because we haven't gone to issue bonds. But when we go to issue bonds, there'll be a budget that'll be $75,000 or $100,000 of this is what we believe the annual costs are to administer the CFD. And that will come off the top and then there'll be debt service. And then we'll have, make sure that there's 110% coverage on that and the maximum special tax that we talked about earlier. So I think, I mean, it's obvious in some ways what the benefits are from a city standpoint as well as for the developer. I can understand that. But I think that I guess my question would be, and I like what are the other considerations that aren't so obvious that could be a risk for the city that we should be considering as you're developing with this CFD looks like in the RMA. So again, I think you've highlighted it and the city is turning highlighted. If there's a bankruptcy event or something that happens with the developer and all of a sudden you've got a bunch of debt on a property with a project going nowhere. Although the city is not responsible for paying debt service on the bonds, you've got a problem. You might have that problem even without a CFD on it, right? I think the other thing just to be cognizant of is that the city will be offering securities to the public, just like you do on your least revenue bonds that finance a bunch of things, your water revenue bonds that you've issued and your previous CFD, but with issuing debt to the public comes certain, you know, I would say scrutiny, but your under federal securities laws to comply with that, to make sure that all of the information that's provided to investors is true and accurate in all material respects, there's no material emissions, et cetera. And we will work with the city, city attorney, city staff, and so forth, and the development team to make sure that the offering document is true and correct and all the tier respects. And you all will have an opportunity to review that offering document before it's approved and bonds are sold. And the timing you said again is ideal. What's the goal timing? Sorry, and this is my being one of my last questions. Yeah, I believe the developer is anxious to get the CFD formed this summer. And then I think they're not as anxious to get the money in terms of improvements. Essentially, the developer really won't be able to get reimbursed for the improvements until they're completed. And so some of the big ticket items are a Merv Griffin way and the botanical gardens and those aren't going to be done for some period of time. And so I think the developers thinking bonds are going to come sort of later stages of the project once the condominium towers are built, etc. Does it have, does the CFD by issuing that bond, does it have any impact on the city for evaluating it for issuing bonds for anything else separate and apart from? No, it will not like the rating the analysts, like a rating agency, the city's got a AAA rating for M S and P. This will not be considered as debt of the city's general fund or city debt. It's- Just a ministering. Yes, exactly. Okay. My last question was and now I forgot. Oh, this is, I think it's really important for us as a city that this is really communicated to the public that we're having this conversation and that they are aware that this is something that the city is considering. Because my concern for this for me personally, this isn't to do it to you. Some more with us for our staff is that, you know, it's in the study session. It's like in the middle of our study session and it was just a very brief kind of intro to the fact of what CFD were considering. But I think it's going to be really important that we're very transparent about this. And especially if you're talking about moving this forward during the summer time, I know that sometimes people criticize the city as trying to do things when there's not as many people paying attention around in the city in the summer, et cetera. So not to hold it up in any way, but I just think it's going to be very important to be very transparent about this. So thank you for your answering my questions. Thank you very much. Also, I'm very grateful. Thank you. So thank you for the presentation. So let me ask those some questions. If I heard ask the member who I'm going to ask the member who I'm going to ask the member who I'm going to ask the member who I'm going to ask the member who I'm going to ask the member who I'm going to ask the member who I'm going to ask the member who I'm going to ask the member who I'm going to ask the member who I'm going to ask the member who We pay those or we were reimbursed those out of the tax receipts. Yes. So what will happen is, so as of right now, the developer has made deposits with the city to pay for my time. That we spend staff time, consultant time that's been representing the city. There's a reimbursement agreement back with the developer. Once the CFD is formed, the city will have the ability to levy special taxes each year to pay for administrative costs. And so the city will determine a budget with its consultants in terms of what those costs are annually for staff time reimbursements. And as I mentioned before, those get paid in priority over debt service on bonds and other costs. So if there were a default, then we would be on the hook ourselves for the administrative costs pending some kind of foreclosure claim. So fair question. So again, there would be, in connection with the issuance of bonds, there would be administrative expense fund that would be funded and we would likely pre-fund certain costs but you know this is a complicated project, right and If the developer were going to bankruptcy that you know that could be prolonged foreclosure periods of time, right and so The there could be sources of funds depending on when it happens and what goes on there There might be funds underneath the indenture that would be sufficient to cover all those costs. Might be, but it might be, not necessarily. And if there wasn't, then those costs, the city would decide whether or not they want to front those costs or not, or the trustee would, and you would seek reimbursement for those costs at the ultimate foreclosure sale proceeds or from a workout. Now you mentioned that there's a special taxes on the property and that's the security for the repayment. In the hierarchy of leans, where would that be? In fact, because there are gonna be lots of leans against the property. Statutarily superior, it's co-equal with the property tax, with the lien of property taxes. And superior to even security. Lenders, yes. Yeah, yes. Yes. I statue. Now, you also said that in connection with the issuance of bonds, the city itself would have to make representations and warranties. Not sure I said that, but the city, I think what I was trying to get across and forgive me if I conveyed it incorrectly is that the city will be responsible for the contents of the offering document to the bonds to the federal securities laws. Just like you are for your least revenue bonds that you have outstanding, just like you have for your water revenue bonds, you have outstanding. for the previous business triangle bonds that you have outstanding, just like you have for your water revenue bonds, you have outstanding. And for the previous business triangle bonds that you have outstanding. So in connection with that, yes, the city will be representing to the investors that all the information in this offering documents, true and correct and all material respects. All right, well that representative's warranty's always have some potential liability as you know. That's correct, yeah. Okay. I would also say just, and I'm sorry, I mean, that Cuyah, but in the acquisition agreement that we will enter into with the developer, we will get indemnity from the developer and all that. But if the developers, if things go sideways, that yeah, I'm not chigger code, I'm just, just actually, That's not gonna be as good as the tax, please, that's for sure. So the next question I have is now in our report. I'm not chigger code. I'm just. Right. That's not going to be as good as the tax. I'm sure. So the next question I have is now in our report, there are a number of things that these CFD bonds would be used to fund. The offside public works, major tele-relocations, upgraded tele systems and onside public beneficial improvements. Isn't the developer already obligated to provide those into the current development agreement? The developer is obligated, and I believe I can defer to the city on what's- Yes, that is correct. So look, I'm not going to ask too many more questions where the veriplinary phase. But I think this is, I understand why the developer wouldn't want this. I think this looks like it's basically a request for the developer to move some of the cost they've already agreed to incur in the development agreement to future property owners of the development. That's fair. But I do think as we explore the issues that there are certain risks that we take. This is not a completely risk-free endeavor from the city's point of view. It may be that our financial wherewithal is not a risk, certainly potentially reputationally and then there may be administrative costs and whatever if things go sideways. So I am willing to entertain this, but I would only entertain this if we were to reopen the development agreement for additional compensation into the city because I think this was something that could have been envisioned when the development group was formed. We weren't asked to do it. We didn't do it at that point. This is an additional obligation we'd be taking on and I think we should be compensated for doing that. That's my position at this point. Thank you. Council Member Friedman. Boy if I didn't have a lot of questions before I sure got more now. The landowner vote that will occur. How many and then it needs to be a two-thirds vote. How many landowners are there? It's a good question, Mr. Kane. How many, just one landowner currently? Okay, so, so, and you had mentioned something about it would be divided amongst the per acre, etc. But there's one person that owns all of the acres. If there's a single entity that owns all the acres, yeah, they'll have a ballot that says I have 23 votes to it if there's 23 acres. Yeah. One vote for each acre portion thereof. But you're understanding at least at this point in time is that it would be one person voting the entire 23 acre 23 votes. But it is divided up acre by acre by acre. Yeah. One vote for each acre. The. Okay, the city has no liability. It's kind of an issue. I just wrote notes as we were going through it and I'm sure I'm going to have many more questions at a subsequent discussion. But City has no liability. You kind of discussed it with questions asked by Councillor Member Wells and Councillor Member Corman. financial liability? Does the city own those improvements after they are improved? Yes, so as part of the city will acquire any of the public improvements or an interest in those public improvements. And I'm saying the interest in there because there's a couple unusual aspects to this project. As we all know, it's a super complicated project, right? And the botanical gardens are owned in fee by the developer. They are underneath the development agreement. And please help me, for some of the city, if I get this wrong, are required to be open just like a public park from sunrise to sunset and and so in connection with that park the developers intending to convey to the city an easement and so part of what the city will be acquiring will be an easement of that contains these constructed botanical garden facilities. And similar to to Merve Griffin Way, the again the fee title to the tunnel underneath the project will be owned by the developer and there's going to be an easement access to the city will acquire that will keep that open for traffic just like any other road in the city of Beverly Hills subject to closures, etc. as permitted in the development agreement. Okay. In terms of Merr Griffin drive, was that the situation prior to the construction that we had an easement and it was not owned by the city. So the city actually has not historically had an easement to Merv Griffin way, but there were reciprocal easements between the two property owners when it was separate, when it was the Robins' May property and the Hilton property. And so they each held the half that the other party needed. And so they kept it open. We were not a party to that. However, as part of the One Beverly Hills project, the city has been able to get an easement for public usage of it. So with regard to any of these improvements, any improvements that are on city property, for example, a new water line, we would retain ownership of that, but improvements that are on the private property like the gardens, we have an easement to it, but we don't own the property. Okay, so let's say there's going to the area where there's an easement and the maintenance of that easement is the responsibility of the fee simple owner. The city has no obligation for any maintenance, the minute that you step foot on to the private property. The only thing that the city maintains are things in the public right of way. Going to the amount of the bond and again, I know we're ballparking this and I'm going to be going to the community. the bond and again I know we're ballparking this and I'm keeping that in mind but using that $250 million net that is exclusive of the interest and administrative costs. So the net number is so when these bonds are going to be issued there'll be a death service reserve fund that'll be funded as security for the bonds, that'll be roughly 10% of the power amount of the bonds. And then there'll be cost of issuance associated with the issuance of those bonds. And so because the bonds are basically,, can be sized based off the revenues from the property. And so the bond size goes up and down basically on what the interest rates are, right? If you have a stream of revenues and you can borrow at 4%, it's going to produce a larger bucket of dollars. If it's borrowing at 6%, that bucket's going to be a little bit smaller. And so if the developer is trying to net $250 million in proceeds, there's going to be a round number that's going to be presented to the city council. I don't know that number yet, but it's $350, $400 million of not to exceed bonded indebtedness. And the reason why we sort of like create some buffer in that is because in order to increase that, to increase that, we would have to come back and have another election at the future. And at that point in time, there could very well be residents in those towers. And the landowner wouldn't be able to have that election. It would be a registered voter election where all the residents that are living in those condominiums would vote on at that point in time. So that's why there's always a little bit of buffer in those numbers. I hope I answered your question. No, you did. I wrote a note here and I'm not exactly sure what my question is, but we'll figure it out. The amount, the bond amount comes up every year. There was something that you were saying about that. Can you explain it? So each year, you all as the legislative body of the City Council will put on the the tax roll, the levy of the special taxes that will be conveyed to the county that will go on the property tax roll. Yeah. legislative body of the City Council. We'll put on the tax roll the levy of the special taxes that'll be conveyed to the county that will go on the property tax bill. I believe you do it currently for your business triangle, CFD. Let's ask that question right now because that reminds me. Do we do that right now and if Jeff can answer that or Ryan or Larry? Yes, we do. Yes. And has that come before council in the past? It does and I believe it's usually on consent. Probably and so on consent. It's usually around August I think. August is the fun date late July or early August. August 10th is the deadline to submit in the count to the county. So it's probably in your June, July, time meeting. It's time for early August. Okay, I'm sorry, I interrupted you. So it does come up to council every year for that amount. It's usually the amount is then determined and then apparently comes to us as a consent item to cover what? So if bonds have been issued, so let's assume that we've issued $250 million of bonds, the item before you will be to levy a special tax sufficient to cover the debt service on that $250 million of bonds, plus whatever the administrative expenses are of the district. And if there's capacity, you know, that there's still a little bit of special taxes left that are able, and there's unreimbursed costs to the developer, there is a potential to levied what we call Pego or pay as you go taxes. And that'll be something that will negotiate and it'll be either be in or be out of the acquisition agreement that we're gonna negotiate with the developer and we haven't got there yet. The developer may say they don't want that. It's just but it is a topic that we'll discuss. I think Council Member Wells raised this in terms of being transparent. Whenever somebody says levy special taxes, I think it has to be very clear that it's on that piece of property exclusively. And I think that we as a community may have to make sure that whatever messaging we have sent out clearly represents that it is only on that special piece of property. Yes, okay. If I may, I will tell you what will happen, and I should have this in my slide. I just overlooked it. There will be what we call a boundary map of the CFD, and the boundary map will depict all of the property that is in the boundaries of the CFD that is subject to the special tax. And in this case, it's going to be pretty easy to depict because it's going to be Walshure, Santa Monica, the property in between and that'll be the boundaries of the CFD and that'll be the only property that will be subject to the special tax and that'll be set forth than the notice of the public hearing And I'm going to be talking about the number of cases that are in the number of cases that are in the number of cases that are in the number of cases that are in the number of cases that are in the number of cases that are in the number of cases that are in the number of cases that are in the number of cases that are in the number of cases that are in the number of cases that are in the number of So there is an acquisition agreement that is contemplated on this. And when is that, what is the timing of that? The acquisition agreement would likely come for approval at the same time the CFD is formed. So not at the resolution of intention, not the first step, but at the second meeting. And that'll be an agreement. We haven't started drafting that yet, but that'll be something that we're gonna start working on with the developer, the public works team, the city attorney's office to develop. And I know that there's been lots of negotiate, lots of discussions between the public works department already about how we're gonna do this. So, going back to, I guess one of my first questions, which is the single land owner. I assume that is a formed entity that is the owner. Is that your understanding? Correct, yes, yes., I have here. Why would the city, let's say 35 years, so the bond has been paid off and there's ongoing costs going on forever? Why would the city not want to continue with some sort of tax in the future? are there going to be so much left over that the city might believe that there's enough funds to carry it forward in perpetuity? Yeah, so again, it sort of depends on whether the city's going to really finance services or not. If the city finances improvements, the maintenance of the street scape along Wilshire and Santa Monica, then that you might want to carry that tax on to pay for that. If that's the agreement between the city and the developer in terms of leaving the burden on the HOA. The other aspect of it just to think about is, all right, 35 years from now, there might be some improvements along, after the project's been in place, there might be some improvements along Wilshire or Santa Monica Boulevard or some upgrades to some other public facility that's located adjacent there too, that, you know, the city desires to the CFD should pay for at that point in time. So that might be another reason why the tax would be continued to be levied past the issue once a bonds and you could consider issuing other bonds at that point time. Okay. Up to this point those are my questions. Thank you very much. Thank you for the presentation. I think that I'm in agreement with a lot of the questions that my colleagues have posed. The first one is that this is an educational presentation. This is just a preliminary discussion that we're having. I think we have a lot of questions. And the report is not as even detailed as the slides were. So perhaps it would be helpful to revisit that. And I know that we will. with regard to the types of foreclosures that are possible, you mentioned that it, can you go over that one more time? Yeah, so it's like an essential security provision for all CFD bonds in the state of California, is if, and it's really the only way the bonds can really be sold, is if the property fails to pay that the issuer, in this case the city of Breville Hills, would covenant on behalf of the bond owners to commence foreclosure proceedings, to foreclose upon the special tax lien that as we discussed has super priority, lean level level as advalorem taxes on the property. And to pursue that foreclosure sale, we're closure proceeding to sale in order to pay off the outstanding debt of the property, the unpaid taxes on the property, excuse me. So the benefit that, I mean, clearly we want to see this project move forward. It's important for the city. It's a close to $5 billion project from what I've been told, and I could be wrong. Is $250 million going to make a significant impact on the decisions that they're making now? And if so, why wasn't this brought forward sooner? That's probably a question for the developer. I'm the lowly lawyer. Okay. You said that it goes up 2% per annually. So is there a max? No, the tax will continue to go up 2% each year. And so long as the taxes is levied in existence. All right, it accumulates on top of the. So if my tax starts at $100 in year one, and year two it'll be $102. And year three it'll be $ you're 420, I'm doing math. It goes up 2% each year. Taxed us. It compounds, but it's the same Prop 13 2% cap that you have on your traditional property taxes. Thank you. Sister, manager. So some of the properties have already been sold, but we're just looking at the land owner. There's just going to be one vote. Yeah, so currently, again, I think the developers represented that and we will confirm this through the process. Again, we're still in the phases of development. But there's a single landowner that owns all of the property here. The developers plan, business plan is to develop condominium towers in the cell to individual homeowners at some point in time in a hotel. And what is the difference between this and homeowners association fee? There's always's always a Homeowners Association fee. Why wouldn't it be easier to just pass those fees along to the Homeowners Association? So, I guess yes and no, for the services component of it, maybe. But for the Homeowners Association does not have a secured lean on the property that's for closeable for like this that could be securedized and monetized to issue bonds against. I guess I'm trying to get my wrap my head around the potential risks that the city would encounter and what the benefits of it would be for for us and that's something that I would want to weigh out and understand more clearly. I may not agree with that. I may not agree with that. I think that it is very important for the community to have a very clear outreach and to have very clear outreach and educate one the council and the community as far as this is concerned. We currently have a bond out, right? We have a variety of bonds that are still active at this point. We do have one CFD, which as was mentioned, is in the business triangle. It was for street scape enhancements, and that CFD still has, I wanna say, five or eight years left on it, give or take. But that's our only CFD in the city currently. And that was the last one since 2002. That's the same one. That's correct. All right. Those are my questions for now. I think. Yes. Just a couple of follow-up questions. I know I asked this question and I know understand that this is more so about financing, but when we talk about the enhancements to the utilities and I don't quite understand and new executive and tower circuits and on site transformers and maybe that may be not your question, but for someone else, it's in the staff report about this. But when we talk about that in terms of the utility systems and or talking about the installation of the fire main loop and the hydrants and the associated piping, is that more enhanced than what is in our city currently and is that more enhanced than I mean I'm assuming that's always been in the plans for this development. Can you confirm? I'm sorry I missed the first part of what has been more enhanced. On the staff report at the top of page two it's talking about enhanced utilities and it's talking about new executive, I don't know new executive is and tower circuits and on site transformers. Yes, so any new project that gets built in the city, there is always a need for off site improvements, infrastructure upgrades. You may need a larger water meter, you may need larger diameter pipe, you may need to pay for upgraded electrical transformers, circuits, those sorts of things. Those typically get figured out on a project by project basis, depending on what the level of demand is. But that is something that all development projects have to finance. What about the installation of the fire main loop and the associated hydrants and piping. That is in part, yeah, same situation. This, obviously, this project is at a scale that doesn't compare to anything else going on in the city. So the level of infrastructure upgrades that are triggered by it are substantial, but it's in line with how projects are normally handled. And it's also covered in the development agreement and that the developer agrees to pay for those costs. Right. And once the bond would end, those would be, as those are completed, that comes back to the city and or utility company, utility entities that, for example, if it's a Southern California Edison for transformers or what have you, that goes back to them. So I would say any infrastructure, so if it's the city's infrastructure, let's say a water main in the street, we own that immediately on day one, once that's constructed, the bondholders don't have any rights to that. The bond what the bondholders have is the lien on the property itself, the real estate and not the infrastructure. just regard to the, I just lost my train of thought, sorry. Impact fees, that's part of our development. Agreement already. Yes, we have all of our standard impact fees which get charged out through the building permit and plan check process. And then on top of that, we have specific other fees that are called out in the development agreement, public benefit fees and whatnot. And that's not changing. Is that addressing, are they crossing over on this at all? Are they stay separate? They would continue to be separate. Those are my additional questions. I just think that as we go through this, it's going to be the devil is going to be in the details. So as we just define what those projects are, what it's funding, the maintenance, when the maintenance turns over, who pays for that, if it needs infrastructure upgrades and all of that, it's going to for me, it's going to be in the details. So I think that will be important. The other thing is, one last question is, if you were to do two issues, who determines when the issue is at collaboration between? Ultimately the city determines when the bonds are issued. The developer may request that you move forward to issue bonds, but the bonds can only be issued with the blessing and approval of the City Council. Okay. So councilmember querman has one more comment. To be clear, I asked this earlier. To so we're all clear that this so-called acquisition agreement is not going to give us any additional rights beyond what we're already entitled from the development agreement. That correct? But you could include maintenance and you cannot. I'm telling you we already get this under the development. That's the point I was trying to make earlier. That's correct. The easements that we will get are easements that are already required under the development agreement. But for example, you would be interested in looking at the development agreement. I'm saying we already get this under the development. We're not getting anything new with the acquisition. I'm not suggesting we're getting anything new. I'm saying how are we paying for the maintenance of the, for example, the botanical park our garden? So the city has no obligation to pay for maintenance. In the development agreement right now, right? In the botanical gardens that will always and forever be the responsibility of the private property owner. What the city will ultimately take maintenance over on is the brand new water main that gets put into the street. Some point, you know, 60, 80 years from now, that will need to be replaced. The city would replace that out of our water enterprise fund and the idea is that the fees that people pay for their water into the future that goes into partially into the capital improvement plan and we would then pay for it out of that. So just so I mean this is why I made the comment earlier we are we are we are incurring some risk. It may be minimal. We are incurring some risk. It may be minimal. We are incurring some risk. We are getting nothing in return. That's why it's my position. We should reopen the development. We're going to get something in return if we're going to incur this additional risk. That's my— I would agree with you that there is some risk that certainly there is some risk that the city is taking on. And I'm not sure the best way to address that, but it could be the development agreement. And I am very much open to that because I think there is a risk and it is a added work for the city even if we're being compensated for it. It is more. So that's what I was trying to do to in terms of the indirect risk or cost for the city that's not so obvious and And I think there probably are those things. And we won't that's why I say it's the devils and the details as we start to see these documents come. We're going to have to really think that through and get all the way through to really understand that. That's, you know, that would be Mike for myself, my own cautionary approach about really understanding what we're committing to, because I wouldn't want to put the city at risk for those liabilities without having an appreciation for what that is. Councillor Neill Freeman. And those are my comments. So if I may, if a question, then I'll have a comment. discretion discretion, if any, does the council have regarding the issuance of the bond, once it gets to the actual issuance? We've gone through the acquisition and all of that, and then all of a sudden, the landowner comes to us and says, we want to free up $100 million of the bond. You said that they have to come to council. What discussion do we have at that point? It's an interesting question councilman Friedman because the acquisition, there will be a contract with the developer, right? That says that they build this, the facilities, you'll reimburse them if and when bond proceeds are available. At the same time, that acquisition agreement will say that that decisions in your sole discretion and your ability to do that are future council members. On the flip side of that, I think the developer, if we got to the point where the council says we're not going to issue bonds for you. And they've done, they've complied with all the terms of the acquisition agreement. You know, I've never been in this position, I've been doing this for 25 years, I haven't been in that position before and I've never been in the set of facts. But you could imagine that the developer would have some sort of reliance argument to the city that, hey, you know, we put the special tax lien on our property. We leaned our property in reliance on the fact that if we satisfied your CIT goals and policies, we could apply with the acquisition agreement. At some point in time, you all would be reasonable in your determination to issue bonds on our behalf. And I'm just not aware of that situation yet in California. Again, I've been doing this for a good amount of time where it's come to that between a developer and a city council. I think more often than not, the situations get worked out between the developer and the city council and reasonable minds come aligned with whatever the business deal is that allows us bonds to get issued. But would, I can't tell you that if the developer comply with all the terms of everything and just for some reason the future council just because I don't like this developer, I'm never gonna issue bonds for them. That, so I think the answer to the question is we have minimal to no discretion at that point in time, essentially. Well, I don't think that that's quite fair because I think I think it's totally reasonable for the City Council to say, hey, we're not going to issue these bonds until all of the apartment or most of these condos have been sold until the value to lean in the properties XYZ until we have an appraisal that does this or until you the developer have remedied the issue that we have with the park that was supposed to be built up to our standards and you haven't done that. I think those are all reasonable discretion, discretionary items. So, yeah. Going back to the comments before about minimal risk to the city, there is some risk to the city. There's also some risk to the landowner also. And I guess what my comment is, I agree that there should be some consideration whatever that may be in terms of going forward with this financing agreement because that's all it is a financing agreement. And I think whatever we discuss in terms of there being a benefit to the city has to be commensurate with whatever the risk is and I think the risk to the city also has to be weighed against the risk that the landowner will have in terms of coming back to the city. So I guess I'm saying yes we need to consider it but I think we need to be reasonable. Okay. All right well thank you very much. I think you have some idea of where the council sits now. What are we doing? How are we doing with time? Thank you. Thank you. Thank you. Thank you for your presentation. Thank you. Can't wait to hear more. Good afternoon, Council. Thank you. Thank you for your presentation. Thank you. Can't wait to hear more. Good afternoon, Council. So I think we can get through this in 15 to 20 minutes. If it runs much past that, we can push it to tonight or to the next meeting. But you've seen this before. So hopefully it won't be a surprise. So let me get the technology up here. So at our last meeting we talked about City Council priorities. We got some great feedback and a direction from Council at that time. We didn't quite have enough time to go through the commission priority process and the priorities themselves for next year. So, Council ask that this item come back today. So here I am today. Just a little bit of background. So earlier, as far back late last year the City Council gave some direction to revamp the priorities for the city including those for our commissions. Our ad hoc met on April 30th our ad hoc is Mayor Nazarian and Council Member Korman to discuss just the structure for how the community, sorry, the commission priority setting should work. So there was a desire to sort of have a name, a description of the priority, the ad hoc concurred that like as with our budget enhancement request, there should be a recommendation by the city manager, which the council can accept or not, and that the staff through the city manager should have an opportunity to suggest different priorities or additional priorities. So today we're seeking a direction and feedback on those commission priorities, which are in your packet. Additionally, the council had directed that the council commission liaison should meet twice a year in June and July, June, July, and December, January, to go over the priorities with each of the commission chairs, vice chairs. And if these priorities accepted are accepted, then we have a new process in place and commissions would no longer be holding their own priority setting sessions of their own. Here's an example of one of the work plan items for the Health and Safety Commission. Again, it describes the project, it gives a title, a description of it, a recommendation from the city manager. Council also wanted to wear appropriate, tie the commission priority back to the city council priorities. So that's what the WP 4.2.2 business is. And then any additional recommendations by the city manager. in in this case, focus on the integration of the Human Relations Commission and the Health and Safety Commission, which the council has already directed. So we are seeking council discussion and feedback on those priorities. I will bring up a copy of the commission priorities that you have in your packet and we are happy to take any feedback that you may have on those. Thank you. Do we have any public comment on this item? There is no public comment for this item. Thank you very much. I'll give a quick liaison report. We felt that this would be best to bring to the entire council as opposed to making decisions at the liaison level or even for each commission. We have council members who are liaisons. We thought that it would be best to do this as a council and that the liaisons would convey that message to the commission chair and vice chair. And this is a working document and commissions. One thing that we noticed was that they needed direction. They kept asking for direction. They weren't sure what the mission was. They weren't clear. And since they serve as the eyes and ears of the council and they serve at the will of the council, we felt that setting policies and et cetera is the job of the council. We would get their assistance in making that those decisions. For example, I was thinking of one item, our sidewalks. There are oftentimes a lot of issues with our sidewalks. We have a lot of trip and falls associated with that, perhaps that could be something that the commissions could look at to monitor, because it's a huge liability for the city. But regardless, a lot of this is tied to our goals for the year, and our city manager was kind enough to put it all, each page represents each commission and each commission has either items that they were working on or items that are being recommended to work on. And I'm not going to go into the details of all of that until it's my turn, but Council Member Cordenman, would you like to share anything else with regard to the liaison report? Give the time to train. Nothing to add. Okay. Great. Thank you. So Council Member Wells, would like to go through any suggestions that you have, please. Okay. Thank you very much and thank you for doing the work. I really appreciate it. So just looking at the rec and parks work plan items, I agree with the city manager recommendations for all of those. For human relations for that commission, I agree with the recommendations. I have one suggestion that I'd like them to consider. I would suggest considering is that since civility month is kind of the signature piece, I would say a human relations commission if I understand that that's still correct. There doesn't seem a lot to be a lot of activity around it. We have the signage up and we nominate someone but there's not a a lot of activity. So I would suggest considering combining the kindness week activities with civility month because it makes, they're very similar and it makes sense to me that that would happen during civility month. That's just a suggestion for them to consider. For health and safety for the Commission Work Plans. I agree with the City Manager recommendations and I may add that they consider things around emergency preparedness for fire and earthquake and you know all the things related to that given the latest events that have happened in the city as well as being abroad in the city. For arts and culture commission, I agree with those recommendations as well. And I would make a recommendation for them to consider. And this may be as well, I mean it's really for all future mayor's Maren's area now and Councilmember Korman when he's mayor as well as up until the Olympics, but I would say now would be the time for Even the Arts and Culture Commission to start looking at what types of things could they be planning now in relation to to the Olympics for art exhibitions or cultural events happening in our city during that time and as well finding out what is happening in LA on a broader sense. But we don't have events in our city at Olympic events, but it is a really great time to have cultural and art exhibits in our city. And I think this would be the time to start having those conversations and trying to put together plans. And it would be an ongoing program. I feel the same about that for the Cultural Heritage Commission as well. I think that it's a great opportunity when people are in our city for the Olympics to be able to create some sort of plans or programming around that time for the Olympics to really showcase the city of Beverly Hills cultural, rich cultural heritage that we have, our historic heritage. So it sounds like a redundant statement. So I would add that to the Cultural Heritage Commission, and I agree with the other recommendations. For public works, I agree with the recommendations, except that when we get to the reduced carbon emissions, it says implement climate action plan and add up climate action and adaptation plan. And I would just say evaluate or just not blindly, blank it, we implement the plan because there's so many items on there which I brought up before. And that's the same for the Chargers. We talked about that being implemented when it was needed. So that's just a minor thing, but I think I agree with all of the work plan items. For traffic and parking, I agree with those items. That's where the expand level 2 EV chargers are, and I just went necessary. And that's it. Great, thank you very much. Councillor MM Corman. Thank you. All right, so I pretty much agree with the staff's recommendation and the different priorities. I agree with Councillor Wells suggesting the kindness week being a grant of the civility month for the Human Relations Commission. That's a good idea. I also agree that perhaps the Arts and Culture Commission and the Heritage Commission should start thinking about programs they might want to do for the Olympics. I would add the World Cup. Since the World Cup in many instances is big as the Olympics are today. There's a number of events that are all tied to the Olympics Committee and we perhaps look at all of them. Right, so I'm just saying so if we're going to add consideration for events. Superb. Well, I don't think that's quite the same international attraction as the Olympics in the World Cup. I'm saying I think the Olympics are a good idea. It's a little farther than the World Cup, but the World Cup is just as big and not bigger, so we should be. And require some advanced planning. Yeah one thing I would say on the Cultural Heritage Commission I got some feedback from the culture Heritage Commissioners or a couple of them and there may have been a disconnect where I'm not sure the proposal was to have an award aimed after Phil Savineck as it was to have an award that was initially given to him in posterity for Aware and education. I wasn't there, I don't know, this was some feedback that was given to me. I remember originally they wanted to give and they wanted to acknowledge him. I thought that it morphed into. It may have, but someone contacted me and said they weren't sure that was the case. Whatever their recommendations, I think we just need to make sure. We can clarify that. That's right. With respect to the Public Works Commission, so, and I'm with Councillor Muguel's on the expand level 2 EV, which is reduced carbon emissions, it's part of their work plan. So, as the Clean Power Alliance representative now, I learned that the CPA had a program where they were giving a quarter of million dollars to members, if you will, each one we get $2,000 towards something. And I guess we made the decision that it should be towards level to EV charging stations in the city. I'm not sure that's the best use of those at money. There were other possibilities on the menu, and I would just suggest that we take a second look at that before we roll out the EV chargers. If some of this is grant money, maybe the grant money could be put to better use. I understand the need for having fast chargers for our growing fleet of electric vehicles. We've already bought them, so I'm not even talking about that. I'm talking about the level two chargers in the city. And those are my comments. Thank you. Thank you, Council Member Friedman. So I agree with the recommendations my colleagues have just stated. I'm not going to go through them again. I think it's extremely important that we do look in the future years in terms of the World Cup and the Olympics. I think that is something that we should be looking at right now. But other than that, I have no other comments. Thank you. Okay, I have some comments. With regard to Reckon Parks, I would like to invite that we partner with the Innovation Advisory Committee because they had some ideas and suggestions with regard to DJ and coffee in our parks and during the weekends and I think that's a great way to bring our community together. It's an easy way to partner with our kids and engage with our youth. In addition, I think that we should partner and collaborate, have them partner and collaborate with AYSO, BH Little League. I think those are easy connections and see how we can partner with them and improve. I think that it would be great to have a tree sponsorship program as part of our parks and wrecks. We're looking at ways to add more trees and that might be a program if my colleagues are in agreement with that. We have a bench, adopt a bench, we have adopt a, what else do we have? But this is a great way with our 501C3. A lot of people want to contribute. And there's a very in-depth process involved with purchasing a tree for the city. But this would expedite it and make it easier for people to participate and contribute to that. Okay. I'm in favor of combining civility and kindness. I agree with that. I think that's a good move as well as we have an Olympic task force that's already started, but perhaps partnering with these different groups and commissions. That's a great idea. I'm going to agreement with the suggestions that have been made. I think that it's important to provide direction and look at the art that we have right now, as was suggested. Those are excellent recommendations from our city manager. I think that when we do placks for significant landmarks, we should include council in placing those placks in place so that there's more tie into it. We're talking about the cultural heritage. Yes. Next. Typically we had council members at plaque dedication since you've been invited, Jenny. You haven't had one in a while. Yeah, we did. I've been on council three years. I've never been invited to one. So maybe I'm sure the council is not. I don't know if you've landmarked a part of the past. I don't think we have what we have, but I know in the past I remember being on sunset and alpine. And we did do a ribbon cutting for the inaugural golden shield installation at al, the commissioners, the commissioners, the commissioners, the commissioners. the parks but I think that it's a great weight engaged with our with our commissioners. They're the eyes and ears of our city and there's always so much going on with the safety of checking our sidewalks and maintenance. I don't know if there's a way that we could tie in our commissioners to that, but I would look at the cleanliness of our trees, the damage, you know, et cetera, if that's something that we would be able to look. With regard to the reduced carbon emission work plan, I also wrote, check in often, no major changes without the council's awareness and approval so that we're all on the safe page. So I think we're all and we all had that. Again, reducing the carbon emission, I think that without going overboard, we need to be mindful of that because the electric grid is still having issues and we need to be certain that there's capacity for whatever decisions that we make. With regard to traffic and parking, again, a reduced carbon emission, they're also a part of that. Just be mindful of electric grid and capacity and reliability as it relates to that. With regard to increased mobility options and improvements, I would revisit once we get results of study for Council to discuss because it's a pilot. Sorry, Mayor, which one was that? Traffic and parking commission, increased mobility options and improvements. It says that we don't have just to be sure to revisit that so that we can have the option to continue. And again, you know, if it's possible to have the traffic and parking commissions helping with a big portion of what the city spends money on is trip involves. So if there's a way to have them assisting with that. And those are all of my comments. Are we all good? Anything else we want to add? Are we all in agreement? You did it. Very good. So we will finalize these and incorporate your feedback and then we will start scheduling those liaison meetings between the council and the commissions. Thank you. Thank you very much. Thank you for the suggestions and for the report. So this concludes our study session. We will now take roll for the City Council closed session and parking authority closed session meeting. Can you please conduct the roll call? The first roll call is for City Council. Council member Wells? Here. Council member. Council member Friedman. Vice Mayor Mirch is absent. Mayor Nazarian. Here. The second one is for parking authority. Director Wells. Here. Director Corman. Director Friedman. Here. Vice Chair Mirch is absent. Chair Nazarian. Here. And are there any public comments for closed session? There are no public comments for closed session for either closed session or parking authority. Okay, thank you so much. We will now move to closed session for items listed on the agenda. Please be advised that the formal session for this evening will take place at 7 p.m. Okay.