[00:00:01]
I'D LIKE TO CALL THE SEPTEMBER MEETING OF THE REDONDO BEACH BUDGET AND FINANCE COMMISSION TO ORDER.
JACOB, COULD WE GET A ROLL CALL? COMMISSIONER MARIN. HERE.
COMMISSIONER JESTE. YES. COMMISSIONER ALLEN. PRESENT.
COMMISSIONER SHERBIN. HERE. COMMISSIONER FAHMY ABSENT.
COMMISSIONER WEISS. HERE. AND CHAIR WOODHAM. HERE.
LET'S STAND AND SALUTE THE FLAG. READY? I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS.
ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
MOVING ON IN THE AGENDA. WE'RE AT THE APPROVAL OF THE ORDER OF AGENDA.
[D. APPROVE ORDER OF AGENDA]
COULD I GET A MOTION TO APPROVE THE ORDER OF AGENDA? MOTION TO APPROVE. SECOND. ALL IN FAVOR? AYE.THERE ARE NO BLUE FOLDER ITEMS THAT I'M AWARE OF.
YEP. NO. BLUE FOLDER ITEMS. CONSENT CALENDAR.
[F. CONSENT CALENDAR]
WE HAVE TWO ITEMS ON THE CONSENT CALENDAR. THE APPROVAL OF POSTING AND THE APPROVAL OF THE MINUTES.CAN I HAVE A MOTION TO APPROVE THE CONSENT CALENDAR? MOTION TO APPROVE. SECOND. ALL IN FAVOR? AYE.
CONSENT CALENDAR IS APPROVED. EXCLUDED CONSENT CALENDAR ITEMS. THERE ARE NONE. PUBLIC PARTICIPATION ON NON AGENDA ITEMS.
[H. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS]
AND DO WE HAVE ANY. WE DO. OKAY JIM YOU'RE ON.I ALWAYS HAVE A SCRIPT AND YOU KNOW, SOME OF THE ITEMS YOU MIGHT HAVE ALREADY DISCUSSED.
ANYWAY, THANK YOU AND WELCOME NEW MEMBER. I HOPED THAT ALL THE NEW MEMBERS WILL BE HERE.
I HAVE FINANCIAL AND A GOVERNMENT PROCUREMENT BACKGROUND, SO I'M AWARE OF THE VALUE OF GOOD FINANCIAL CONTROL AND FORECASTING AS WELL AS SOUND PROCUREMENT PRACTICES. HERE ARE A FEW ISSUES I'VE NOTICED THAT MIGHT MERIT YOUR ATTENTION.
GOOD FINANCIAL CONTROL THRIVES ON INFORMATION AND DATA.
CITIES ARE REQUIRED TO ISSUE AN ANNUAL COMPREHENSIVE FINANCIAL REPORT.
IT WAS TWO FISCAL YEARS BEHIND THE FINANCE DIRECTOR STEPHANIE INFORMED ME THAT SHE HAS COMPLETED THE FISCAL YEAR 24-25, AND IT SHOULD BE AVAILABLE TO YOU, AND I THINK YOU'LL FIND IT VERY USEFUL.
YOU MIGHT ASK HER ABOUT THE 26TH ONE. THE COMMISSION WAS LOOKING INTO THE MURKY WORLD OF PUBLIC WORKS PROJECT PLANNING, PROCUREMENT AND FINANCING. COMMISSIONER JESTE.
KUDOS TO YOU. I BELIEVE THEY FOUND SOME INTERESTING ISSUES INVOLVING CHANGE ORDERS.
THE PUBLIC WORKS DIRECTOR IS ADEPT AT FINDING PUBLIC WORKS GRANTS, BUT THE PROJECT THE COMMISSION LOOKED INTO WAS APPROVED BY THE COUNCIL AS ONE THING AND TURNED INTO SOMETHING A BIT LARGER WITHOUT SUBSEQUENT FORMAL REVIEW.
IN SEVERAL PROJECTS, THERE SEEMED TO BE UNUSUAL AND CHRONIC VARIANCES BETWEEN THE ENGINEER'S ESTIMATE, WHICH IS APPROVED BY THE COUNCIL AND THE FINAL PROJECT COST.
PROFESSIONAL SERVICES PROCUREMENT IS A SIGNIFICANT PART OF THE BUDGET.
NUMBER ONE, THERE'S NO PRECISE DEFINITION OF PROFESSIONAL SERVICES.
SO IT COULD BE ANY SERVICE. YOU CAN GET MANAGEMENT TO APPROVE.
NUMBER FOUR THERE ARE A FEW WRITTEN. THERE ARE FEW WRITTEN SOLE SOURCE JUSTIFICATIONS.
A RECENT CONSULTING CONTRACT FOR $66,000 WAS LET SOLELY ON THE RECOMMENDATION OF A COUNCIL MEMBER.
THE FINAL COST SEEMED SIGNIFICANTLY ELEVATED FROM INDUSTRY HISTORY STANDARD.
FINALLY, THE QUARTERLY BUDGET REVIEW SEEMS SKETCHY.
FIRST, THERE'S NO QUARTERLY BUDGET. THE COMPARISONS MADE.
[00:05:02]
JIM. TIME IS UP. CAN I GET A MOTION TO EXTEND THE SPEECH? MOTION TO EXTEND. SECOND. ALL IN FAVOR? AYE. CONTINUE.BUT TO LAST YEAR'S RESULTS THE COMMISSION ISN'T PRESENTED WITH A DETAILED FORECAST.
SO I HOPE YOU FIND THESE THINGS USEFUL FOR NEW MEMBERS.
THANK YOU. JUST A COMMENT, JIM. WE APPRECIATE THE TIME YOU SPEND HERE AND THE COMMENTS YOU MAKE.
THEY'RE VERY HELPFUL AND WE WISH MORE CITIZENS WOULD DO THE SAME.
THANK YOU. I WISH SO TOO. I SPREAD, I'M SPREADING THE WORD.
GOOD, GOOD. OKAY, WE HAVE ONE MORE PERSON.
NOT SURE IF THIS IS BRIBERY OR THERE'S A LOT OF SWEETS.
MAYBE YOU ALL NEED THE SWEETS. STEVE HAAGE. 35 PLUS YEAR RESIDENT, NORTH REDONDO, DISTRICT FOUR.
JUST REALLY A COUPLE OF COMMENTS VERSUS. I'M NOT SPECIFIC AS JIM.
I CAME HERE SO HE COULD NEVER, EVER, EVER SAY HE WAS THE ONLY ONE HERE THROUGHOUT THE ENTIRE YEAR.
ACTUALLY, I'M JUST TRYING. YOU AND ME BUDDY. NICE.
MY TWO MAIN CONCERNS, THEY KIND OF FALL OFF A SAFETY.
THERE ARE TONS OF THEM AND I BELIEVE IN THE BUDGET.
PREVIOUSLY, MIKE HAD MENTIONED A LINE ITEM OF 237 K OR SOMEWHERE THEREABOUTS.
AS A REDUCTION IN TREE TRIMMING IN REDONDO. I DON'T KNOW WHERE THE PLACEMENT OF THAT WAS.
I NEVER HAD A DIALOG WITH HIM OR SOME FOLKS. SO ON A COUPLE ITEMS, I FIGURE IF I MENTION IT ENOUGH, AT SOME POINT SOMETHING'S GOING TO HAPPEN. I MENTIONED THE PINE CONE SCENARIO BECAUSE A LOT OF PEOPLE HAVE CONVERTIBLES AND EXPENSIVE CARS. THEY DRIVE DOWN ARTESIA. MY CAR WAS HIT WITH A PINE CONE IN RALPHS PARKING LOT AS CRAZY AS THAT SOUNDS.
I THOUGHT IT WAS A ROCK HITTING MY CAR AND I SAID, HOLY.
I'LL SAY SUGAR. I THOUGHT SOMEBODY THREW A ROCK.
IT WAS HORRENDOUS NOISE AND IT JUST MAKES ME THINK THAT BOY 30, 40 MILES AN HOUR.
YOU GET HIT IN THE FACE WITH A PINE CONE. YOU'RE GOING TO HAVE A PROBLEM.
AND I DON'T UNDERSTAND WHY WE CAN'T CUT A TREE.
SO THAT DOESN'T OCCUR FROM A SAFETY STANDPOINT.
THE OTHER ONE IS I HAD TWO THINGS CROSSING ARTESIA.
I WALK IN A LOT OF DIFFERENT AREAS, SO MY EXPERIENCE MAY BE DIFFERENT THAN YOURS.
I PUSH THE WALK SIGN. IT SAYS, PLEASE ENTER YOUR CODE.
WHAT? THAT WAS VERY ODD. SHORTLY AFTER THAT I WAS COMING, LET'S SEE, IT WOULD BE SOUTH ACROSS ARTESIA AND I'M CROSSING THE PARKING AREA, FIRST LANE GOING INTO THE SECOND LANE.
THEN THERE'S A MEDIAN AND I'M TWO FEET FROM GOING IN THAT FIRST LANE AND A CAR AT 40 MILES AN HOUR.
I JUST HAPPENED TO LOOK COMES RIGHT IN FRONT OF ME.
SO WITH TWO FEET MORE OF MY MOVEMENT, I WOULDN'T BE HERE.
I DON'T KNOW WHY WE CAN'T SPEND A LITTLE MONEY TO PUT A LITTLE PAINT AND SOMETHING ELSE.
THANK YOU. THANK YOU FOR YOUR TIME. IT IS TRULY APPRECIATED.
THANKS FOR COMING. I DON'T DO SWEETS. OKAY, MOVING ON TO ITEMS CONTINUED FROM PREVIOUS AGENDA. OH, PARDON THE INTERRUPTIONS.
NO ONLINE COMMENTS OR ANYONE ON ZOOM FOR NON AGENDA ITEMS. OKAY. WE'VE GOT TWO ITEMS CONTINUED FROM PREVIOUS AGENDA THE PROFESSIONAL SERVICES LETTER AND THE
[I. ITEMS CONTINUED FROM PREVIOUS AGENDAS]
CAPITAL IMPROVEMENT PROCESS LETTER. COMMISSIONER ALLEN HAS PROVIDED DRAFTS, FIRST DRAFTS OF THOSE TWO LETTERS,[J. ITEMS FOR DISCUSSION PRIOR TO ACTION]
AND I THINK THE PROPER WAY TO HANDLE THIS OVER THE NEXT TWO MEETINGS IS SINCE WE'VE ONLY HAD A CHANCE TO READ THIS PRIOR TO THE MEETING, IT WOULD BE PROPER TO HAVE DISCUSSION AT THIS MEETING AND THEN COME BACK WITH ANY FINAL COMMENTS AT THE OCTOBER MEETING AND HAVE[00:10:08]
THAT BE OUR TIME TO FINISH THE LETTER AND SEND IT TO COUNCIL.IS THAT. WELL, LET'S SEE WHAT HAPPENS. YEAH. IF THERE ARE ANYTHING, WE'LL MAKE A DECISION OR YOU KNOW, THAT WILL BE THE MOTION OR NOT. OKAY. SO, COMMISSIONER ALLEN, COULD YOU TAKE OVER THE DESCRIPTION OF THOSE TWO LETTERS AND FIELD QUESTIONS? ALL RIGHT. THE FIRST LETTER IS THE AND THIS IS A FIRST DRAFT, SO.
CURRENTLY CITY'S MUNICIPAL CODE PROVIDES LIMITED GUIDANCE REGARDING PROFESSIONAL SERVICES, WITH THE ONLY STATED PROVISION BEING THAT COMPETITIVE BIDDING IS NOT REQUIRED.
ADDITIONALLY, THE COMMISSION WAS UNABLE TO RECEIVE COMPREHENSIVE LIST OF ALL PROFESSIONAL SERVICES OR THE TOTAL ANNUAL EXPENDITURES ASSOCIATED WITH PROFESSIONAL SERVICES. ACCORDING TO FINANCE DEPARTMENT, THE EXPENDITURE FOR PROFESSIONAL SERVICES IS COMBINED WITH OTHER CONTRACTUAL SERVICES IN THE CITY'S BUDGET. THIS LIMITS THE COMMISSION'S ABILITY TO EFFECTIVELY EVALUATE, ANALYZE, PROVIDE OVERSIGHT REGARDING CONSULTANT EXPENDITURES.
ESTABLISH A FORMAL COMPETITIVE PROCESS FOR PROFESSIONAL SERVICES.
THE COMMISSION RECOMMENDS ADOPTION OF A FORMAL PROCUREMENT REQUIREMENT FOR PROFESSIONAL SERVICES TO ENSURE CONSISTENCY, FAIRNESS AND FISCAL RESPONSIBILITY. PROFESSIONAL SERVICES AGREEMENTS UNDER $50,000 SHOULD REQUIRE DOCUMENTED SOLICITATION PROCESS WITH A MINIMUM OF THREE QUALIFIED PROPOSAL OR QUOTES WHEN PRACTICABLE.
CITY SHOULD CREATE A DISTINCT PROFESSIONAL SERVICES LINE ITEM SEPARATE FROM GENERAL CONTRACTUAL SERVICES IN BOTH THE BUDGET DOCUMENT AND ACCOUNTING SYSTEM. THIS WOULD ALLOW THE CITY COUNCIL COMMISSIONS AND PUBLIC TO CLEARLY IDENTIFY AND TRACK EXPENDITURES RELATED TO CONSULTANTS AND PROFESSIONAL SERVICES, AND SHOULD BE OTHER PROFESSIONAL SERVICES PROVIDERS.
IMPROVED REPORTING WOULD ALLOW FOR A MORE MEANINGFUL ANALYSIS OF THE CITY'S RELIANCE ON CONSULTANTS, PARTICULARLY IN CIRCUMSTANCES WHERE THE CITY HAS EXPERIENCED SENIOR LEVEL STAFF CAPABLE OF PERFORMING CERTAIN FUNCTIONS INTERNALLY.
PROFESSIONAL SERVICE PROVIDERS FREQUENTLY CHARGE HOURLY RATES RANGING FROM APPROXIMATELY 250 TO $650 AN HOUR, MAKING APPROPRIATE OVERSIGHT AND JUSTIFICATION OF THESE EXPENDITURES ESPECIALLY IMPORTANT.
STRUCTURE PROCUREMENT PROCESS WOULD PROMOTE COMPETITION, ENCOURAGE COST EFFECTIVE DECISION MAKING, AND PROVIDE GREATER TRANSPARENCY REGARDING THE SELECTION OF PROFESSIONAL SERVICE PROVIDERS.
THAT'S ALL. OKAY. LET'S DISCUSS THIS ONE BEFORE WE MOVE ON TO THE CAPITAL IMPROVEMENT PROJECTS.
COMMENTS FROM OTHER COMMISSIONERS. IS THERE SOME BACKGROUND ON ON THIS WHY? HOW DID IT ARRIVE? WHY DID IT ARISE? IT WAS EITHER COMMISSIONER JESTE OR JIM MUELLER OVER THERE WHO BROUGHT THIS TO OUR ATTENTION THAT THERE IS NO SOME ONE WAS IT YOU MAYBE IT WAS YOU.
HOW DID WE COME UP WITH IT. THE CONCERN IS THAT SINCE THERE ARE PROFESSIONAL SERVICES THAT ARE NOT PUT OUT FOR BID, PERHAPS WE'RE SPENDING TOO MUCH MONEY. AND THE SUGGESTION OF DOING A SEARCH AND PUTTING THOSE OUT FOR BID COULD SAVE US MONEY.
RIGHT? OR AT LEAST THE CONSULTANTS WOULD KNOW THAT THIS IS A COMPETITIVE PROCESS THAT CAN JUST GIVE ANY JUST KNOWING THAT IT IS GOING TO BE A COMPETITIVE PROCESS.
BUT THE FEAR IS THE ISSUE THAT WE'RE TRYING TO GUARD AGAINST IS THAT WE'RE WE MIGHT WE DON'T HAVE EVIDENCE THAT WE ARE PAYING TOO MUCH MONEY, BUT THE CONTROLS ARE A LITTLE LOOSE WHEN WE DON'T GO TO BID FOR THOSE KINDS OF SERVICES.
DO WE KNOW I MEAN, BECAUSE ONE OF THE ISSUES IS YOU WANT MORE VISIBILITY.
[00:15:02]
SO DO YOU KNOW HOW MUCH RIGHT NOW THE CITY SPENDS ON PROFESSIONAL SERVICES, OR IS THAT ONE OF THE GOALS OF THIS.WE KNOW AS A TOP LEVEL, THERE'S A LINE ITEM AND IT'S KIND OF BEEN GROWING OVER TIME.
AND AGAIN, THEY'RE NOT GOING OUT FOR COMPETITIVE BID.
AND IS IT RENEWED OR EXTENDED AND THOSE TYPES OF THINGS.
SO WE WERE JUST REALLY MORE LOOKING TO EITHER BUILD A PROCESS SIMILAR TO CONSTRUCTION OR OTHER THINGS THAT ARE DONE IN THE CITY TO BETTER UNDERSTAND WHAT'S GOING ON AS WELL AS TO HAVE TRANSPARENCY ON AN ONGOING BASIS. THAT MAKES SENSE.
I WAS JUST TRYING TO UNDERSTAND. NO. OF COURSE. HOW BIG? HOW BIG IS THIS A BIG LIKE A BIG ISSUE? IS THIS A SMALL ISSUE? SO WE DON'T AT THIS POINT WE DON'T EVEN KNOW HOW MUCH MONEY THE CITY SPENDS ON CONSULTANTS.
OKAY. SO THAT'S WHY. THAT'S WHY YEAH. THAT'S WE CAN'T EVEN START ANALYZING ANY OF THOSE QUESTIONS.
OKAY. AND THOSE ARE GOOD CONCERNS, RIGHT? YEAH.
OKAY. SO AGAIN, MY SUGGESTION AGAIN, I READ OVER THIS, THIS AFTERNOON HURRIEDLY.
MY SUGGESTION IS THAT WE TAKE THIS DRAFT, TAKE A LOOK AT IT BETWEEN NOW AND THE OCTOBER MEETING AND COME BACK AND BE PREPARED FOR A MORE IN-DEPTH DISCUSSION AND POSSIBLE CHANGES THAT EACH OF US MIGHT SUGGEST TO IT.
SO THAT'S A SUGGESTION. WHAT DO YOU THINK? SO DO YOU WANT TO DO A SUBCOMMITTEE TYPE OF A THING AGAIN. WELL, I THINK WE BRING THE DRAFT BACK AT THE NEXT MEETING AND DISCUSS IT THE SAME AS WE'RE DOING NOW.
BUT EACH COMMISSIONER WILL HAVE HAD THE ADVANTAGE, THE BENEFIT OF READING IT AND THINKING ABOUT IT AND SEEING IF THERE ARE DIFFERENT THINGS THEY WANT TO ADD TO IT, DIFFERENT DIFFERENCES IN THE SUGGESTION.
THE REASON I SAY IT IS BECAUSE WE'VE DISCUSSED THESE AD NAUSEAM AND I JUST WANT TO MOVE FORWARD.
WE'VE DISCUSSED SO MANY TIMES, IS THERE ANYTHING NEW THAT WE WANT TO OR MAYBE JUST AGAIN WHETHER.
UNFORTUNATELY, I DIDN'T HAVE A CHANCE TO READ AND BE PREPARED. SO AGAIN, WHETHER IT'S GIVING NOTES OR POSITIONING THINGS IN DIFFERENT WAYS OR ADDING THINGS, I GUESS I CAN'T GIVE. ARE YOU TALKING ABOUT ADDING IDEAS OR. ANY FEEDBACK RIGHT NOW. WELL, I JUST. OR JUST DOING THE FINAL DRAFT. I THINK JUST BEING SURE THAT THIS ADDRESSES THE CONCERNS THAT WE HAVE.
IT LOOKS LIKE IT'S A VERY, VERY, EXTREMELY WELL WRITTEN.
BUT THE QUESTION OF HAVING AN OPPORTUNITY TO READ IT AND COMPARE IT TO WHAT OUR CONCERNS ARE.
I WOULD APPRECIATE THE ADDITIONAL. SO DO YOU GUYS WANT TO HAVE A LIKE A COMMITTEE OF THREE AND DO THAT? WELL, I THINK EACH PERHAPS EACH INDIVIDUAL WOULD BE MY THOUGHT.
YOU KNOW, IT'S EXTREMELY WELL DONE. I DON'T KNOW.
NO, NO. SO THAT YOU DRAFT THE FINAL COPY SO THAT NEXT TIME WE'RE HERE WE HAVE WE'RE APPROVING A FINAL COPY, NOT JUST. WELL I THINK. BECAUSE WE WON'T BE ABLE TO APPROVE NEXT TIME THEN.
I THINK THAT'S WHAT THE EXTRA TIME WOULD, YOU KNOW, WOULD WARRANT.
AND YOU'RE SERVING THAT SAME PURPOSE AS THE THREE PERSON SUBCOMMITTEE.
WE NOW HAVE THE ABILITY TO TO COME BACK WITH SUGGESTIONS FOR THE COMMITTEE AS A WHOLE.
WE SHOULD BE ABLE TO DRAFT A FINAL LETTER IN OCTOBER.
SINCE IT'S SO WELL AND COMPREHENSIVELY DONE, I THINK WE COULD EASILY DISCUSS WHAT MIGHT BE ADDED OR WHAT MIGHT BE CHANGED, AND THEN STILL END UP WITH A FINAL DECISION AFTER THE NEXT MEETING.
THAT'S NOT GOING TO BE REWRITTEN. IT'S GOING TO BE TWEAKED HERE AND THERE.
THAT'S NOT THE REASON I'M SAYING YOU CAN'T REWRITE.
WELL, AGAIN, WE EACH OF US HAVE NOTES FROM THE PRIOR DISCUSSIONS OF THIS.
AND SO I'D LIKE TO REVIEW WHAT, WHAT I WROTE IN AS FAR AS NOTES AND COMMENTS.
[00:20:05]
AND I'M NOT PREPARED TO DO THAT RIGHT NOW. OKAY. DON'T WE HAVE A FORMAL PROCEDURE DOCUMENT LIKE THE ONE STEPHANIE GAVE US FOR THE CHANGE ORDERS? IS IS THERE? IF THERE IS ONE, THEN WE CAN SIMPLY REWRITE IT AND SUGGEST THIS IS THE NEW PROCEDURE TO FOLLOW. DO WE HAVE ANYTHING FOR THE PROCESS ITSELF LIKE YOU HAVE ONE FOR CHANGE ORDERS. THAT WAS WRITTEN 30 YEARS AGO.SIR DO WE HAVE ANY PROCEDURES FOR PROCUREMENT? FOR THE PROFESSIONAL SERVICES? YES. SO WE HAVE WHAT WE CALL AN ADMINISTRATIVE POLICY AND PROCEDURE THAT'S KIND OF OUR STAFF LEVEL PROCEDURE.
AND WE HAVE THAT IN THE MUNICIPAL CODE. SO I THINK WE'VE SHARED THAT WITH THE COMMISSION BEFORE, BUT WE'RE HAPPY TO RESEND THAT. MAYBE THAT'S WHAT WE SHOULD LOOK AT AND THEN SUGGEST ANY CHANGES.
SO THAT WAY. COULD YOU RESEND THAT TO THE COMMISSION.
YES. YEP. I THINK THIS LETTER DOES ADDRESS SOME OF THE SHORTFALLS IN THE CURRENT PROCESS.
YOU CAN SUGGEST SPECIFIC. YES. SPECIFIC LETTERS TO ADD TO IT. WORDING. YEAH.
SO THEN THAT BECOMES IT MAKES IT A LOT EASIER FOR THE ADMINISTRATION TO.
I WANT TO MAKE SURE IT'S WE'RE NOT JUST SENDING A COMPLAINT, BUT WE'RE PROVIDING RECOMMENDATIONS, SOLUTIONS. IT'S NOT JUST, THIS IS WHAT'S WRONG.
AND MY COMMENT IS WE HAVEN'T DONE THAT. WE'RE AT THE POINT OF DOING IT RIGHT NOW.
AND THAT'S WHAT A WAIT UNTIL OCTOBER WITH THE CITY SENDING WHATEVER ELSE WE HAVE IN WRITING ON THIS.
WE'LL COME PREPARED IN OCTOBER TO FINISH THE PROCESS.
BECAUSE WHAT I THOUGHT WAS GOING TO HAPPEN IS THAT YOU WERE GOING TO TAKE THAT, YOU KNOW, WE WERE GOING TO DISCUSS. YOU WOULD TAKE THAT AND THEN MAKE THE CHANGES AND THEN SEND IT OVER.
WELL, THAT. NOT EVERYONE'S GOING TO HAVE A FEEDBACK.
CORRECT. SOME MIGHT. BUT WE'RE GIVING THOSE THAT DO A CHANCE TO COME BACK WITH SUGGESTIONS.
SO I MOVE WE DEFER THIS UNTIL THE OCTOBER MEETING.
AND YOU BETTER HAVE FEEDBACK THAT'S ALL I'M GOING TO SAY.
WE'RE THERE WITH THAT WARNING. DO I GET A SECOND? I SECOND. ALL IN FAVOR? AYE. WHEN YOU SHARE THIS, I'M JUST SAYING.
CAN YOU JUST PROVIDE SOME THAT CONTEXT MAYBE IN AN EMAIL OR SOMETHING LIKE THAT? SO I JUST UNDERSTAND WHAT EXACTLY IT'S TRYING TO ACCOMPLISH.
I'M GOING TO TRY TO FIND. OKAY, SO THERE ARE MINUTES FROM.
MAY. MAY. I'M GOING TO SEND THAT TO YOU. OKAY.
THANK YOU. ALL RIGHT. I NEED YOUR EMAIL ADDRESS THOUGH.
YEAH. THE MINUTES HAVE BEEN VERY EXTENSIVE ON THIS, THOUGH.
THE REVIEW OF THE MINUTES WOULD BE GOOD APRIL AND MAY BECAUSE I THINK WE TALKED ABOUT IT IN BOTH.
OKAY, GOOD. AND BEFORE WE MOVE ON, WE DID HAVE A PUBLIC COMMENT ON THIS ITEM.
BEFORE WE VOTED WE SHOULD HAVE. YEAH. MY APOLOGIES.
THAT'S OKAY. IT'S OKAY. FOR THE BENEFIT OF THE NEW MEMBER, IT STATES YOU CAN READ IN THE MUNICIPAL CODE WHAT IT STATES ABOUT SOLE SOURCE PROCUREMENT.
IT SAYS THAT BIDDING IS NOT REQUIRED FOR PROFESSIONAL SERVICES.
IT DOES NOT, IN MY READING OF IT, DEFINE WHAT IS A PROFESSIONAL SERVICE, WHICH I THINK IS A WEAKNESS, BECAUSE IN THE HURLY BURLY OF DAILY BUSINESS, YOU WANT TO GET SOMETHING DONE.
YOU GO OUT AND TAKE THE EASIEST PATH. BUT WITH PROCUREMENT, SINCE IT INVOLVES THE EXPENDITURE OF FUNDS, EXPENDITURE OF FUNDS TO PARTIES OUTSIDE THE CITY AND IT IF YOU DON'T REGULATE IT PROPERLY AND MANAGE IT PROPERLY, IT CREATES A PERCEPTION OF I DON'T WANT TO SAY CORRUPTION OR WRONGDOING, BUT YOU KNOW WHAT I'M TALKING ABOUT.
THAT'S THE ISSUE. THERE YOU GO. NUMBER ONE ISSUE, GUYS, I SEE IT IN TORRANCE WHERE I LIVE.
OKAY, GOOD. THANK YOU. YEAH. SO NOW IN PROCUREMENT, THE REASON THE GOVERNMENT HAS SUCH EXTENSIVE THE UNITED STATES GOVERNMENT HAS SUCH EXTENSIVE PROCUREMENT IS FOR A COUPLE OF REASONS TO ASSURE THE PROPER EXPENDITURE OF FUNDS,
[00:25:07]
AND THAT IS APPROVED ALL THE WAY THROUGH. AND THE OTHER THING IS TO HELP DEVELOP SOURCES, BECAUSE THE MUNICIPAL CODE NOW SAYS NOTHING ABOUT DEVELOPING SOURCES FOR PROCUREMENT.IF YOU OWN. IF YOU'RE ALWAYS GOING BACK TO THE SAME SOLE SOURCE, YOU CREATE AN ATMOSPHERE WHERE THE SOURCE FEELS FREE TO JACK UP THEIR PRICES. THERE MAY BE A PERCEPTION OF FAVORITISM AND CORRUPTION WITH A CONTINUED RELATIONSHIP WITH A SINGLE SOURCE. AND ANOTHER THING THAT SHOULD BE DONE IS THERE SHOULD BE SOLE SOURCE JUSTIFICATION WRITTEN.
AND WHENEVER YOU HAVE TO USE A SOLE SOURCE, WHICH HAPPENS BECAUSE THERE ARE SOME PEOPLE WHO ARE SO UNIQUELY QUALIFIED TO DO A JOB THAT DOESN'T MAKE SENSE TO GO OUT AND FIND OTHER SOURCES, THERE SHOULD BE A WRITTEN JUSTIFICATION FOR IT.
OKAY. AND SO WHEN YOU DO THIS, THEN YOU CREATE A COMMUNITY OF PEOPLE WHO ARE READY TO SELL TO THE GOVERNMENT, TO THE CITY. AND THAT'S A GOOD ATMOSPHERE THAT YOU WANT.
WHAT YOU DON'T WANT IS THAT PERCEPTION, LIKE I SAID, OF FAVORITISM, OVERPRICING.
ANOTHER THING, IF YOU LOOK GO TO THE COUNCIL MEETINGS AND YOU LOOK AT THE CONSENT CALENDAR, OFTEN THEY HAVE CONTRACT EXTENSIONS. SO YOU SEE THE SERVICE PROVIDER WHO GOT A NICE 2 OR 3 YEAR CONTRACT IN THE BEGINNING, SOLE SOURCE IS EXTENDED FOR ANOTHER YEAR AND SOMETIMES TWO YEARS FOR A LOT OF MONEY FOR MORE.
OKAY. SO THOSE ARE KIND OF THE REASONS YOU REALLY WANT TO TRY TO GET CONTROL.
I DON'T THINK YOU SHOULD DO OVER CONTROL. THAT'S YOUR TIME, SIR.
YEAH. OKAY. BUT YOU DO WANT TO GET CONTROL OF THIS PROCESS.
AND THANK YOU, JASMINE, FOR PUTTING THIS TOGETHER.
THANK YOU. ANY ADDITIONAL SPEAKERS ON THIS ISSUE? HI. GOOD EVENING. EUGENE SOLOMON. REDONDO BEACH.
I WANTED TO START OFF BY THANKING COMMISSIONER JESTE FOR YOUR SERVICE ON THE COMMISSION.
YOU WILL BE MISSED. THANK YOU SIR. MY SUGGESTION FOR THIS ITEM WOULD BE TO HAVE A LOOK AT SECTION 19 A OF OUR CITY CHARTER FOR OUR PROCUREMENT OF SERVICES AND THE TIERED PRICING OR TIERED COST, AND THE PROCESS THAT GOES INTO THAT TIERED COST AS PERHAPS A GUIDELINE FOR HOW YOU MAY WANT TO GO FORWARD WITH PROFESSIONAL SERVICES PROCUREMENT, IF YOU'RE GOING TO MAKE A RECOMMENDATION TO THE CITY COUNCIL.
DO YOU WANT TO HAVE A REQUIREMENT OF THREE BIDS FOR A $5,000 CONTRACT? DO YOU WANT TO HAVE THAT BE $25,000, $50,000? SO THAT MIGHT BE SOME GUIDELINE FOR YOU TO PLEASE CONSIDER LOOKING AT THAT.
SECTION 19 A CITY CHARTER. THANK YOU. EXCUSE ME.
DO YOU KNOW WHAT DOES THE CHARTER ADDRESS THIS SPECIFIC ISSUE? DOES NOT ADDRESS PROFESSIONAL SERVICES PROCUREMENT? NO.
WE LOOKED FOR IT, BUT IT WASN'T THERE. YEAH. I WAS ON THE CHARTER REVIEW COMMISSION AS WELL, AND I DIDN'T RECALL THERE BEING COVERAGE FOR THIS.
I DON'T BELIEVE CHARTER CONTROLS THIS ISSUE. OKAY.
SO THE RECOMMENDATION IS THAT IF IT'S BELOW $50,000, THEN YOU GET THREE QUOTES.
AND IF IT'S OVER $50,000 OR OVER, THEN YOU GO THROUGH AN RFP.
YEAH. YOU MAY WANT TO LOOK AT, I THINK THAT'S GREAT.
AND MAYBE PARALLEL THAT INTO WHAT THE REQUIREMENTS ARE WITHIN THE CHARTER.
THAT'S WHERE THOSE NUMBERS COME FROM. THANK YOU.
ADDITIONAL COMMENTS. OKAY. I JUMPED THE GUN. NO ONE ON ZOOM AND NO ECOMMENTS.
NOW THAT WE'VE HAD COMMENTS LET'S VOTE ON THE ISSUE.
ALL IN FAVOR? AYE. AYE. AYE. OPPOSED? OKAY. OKAY, GO AHEAD TO THE NEXT LETTER.
I WAS HOPING THAT THE ONE COMMISSION MEMBER WHO'S NOT HERE, WHO'S A NEW MEMBER WOULD SHOW UP IN THE INTERIM, BUT HE DID NOT. SO LET'S GO ON WITH THAT LETTER.
AND THEN AFTER WE DISCUSS THE CIP LETTER, WE'LL COME BACK TO COMMISSIONER INTRODUCTIONS.
OKAY. WOULD YOU LIKE ME TO READ IT OR. WE JUST WANT YOU TO SUMMARIZE THE RECOMMENDATIONS.
[00:30:06]
AND YOU MIGHT SUMMARIZE THE REASON FOR DOING THIS AS WELL.SO FOR YOUR KNOWLEDGE AND THAT'S THE FIRST PARAGRAPH BASED ON RESEARCH PRESENTED TO THE COMMISSION.
AND I THINK THE RESEARCH WAS DONE BY COMMISSIONER JESTE.
AND WE DO THE COMMISSION DOES UNDERSTAND THAT WHILE CHANGES ARE UNAVOIDABLE AS THE PROJECT'S PROGRESS, THE COMMISSION BELIEVES THAT THIS LEVEL WARRANTS A COMPREHENSIVE REVIEW OF CIP PLANNING AND MANAGEMENT PROCESS.
SO THE REASON WE BEGAN LOOKING AT THIS IS BECAUSE 80% OF THE CIP PROJECTS HAVE GONE THROUGH A CHANGE ORDER, WHICH MEANS THEY INCREASE THE COST AND WE'VE PAID MORE THAN WHAT THE CONTRACT SAID.
SO WE KNOW HOW MUCH, HOW MANY, HOW MUCH FUNDS ARE GOING TO CIP VERSUS THE MAINTENANCE BECAUSE THEY ARE COMPLETELY DIFFERENT STRUCTURES, STRENGTH AND PROJECT PLANNING AND SCOPE DEVELOPMENT BEFORE BIDDING, AND I WANT TO READ THIS ONE.
PROJECTS SHOULD BE THOROUGHLY EVALUATED AND DEFINED BEFORE AN RFP OR BID IS ISSUED.
THE SCOPE SPECIFICATION ANTICIPATED COSTS PROJECT REQUIREMENTS SHOULD BE DEVELOPED WITH SUFFICIENT CARE AND MINIMIZE SUBSTANTIAL CHANGES AFTER THE CONTRACT IS AWARDED.
NEXT IS ESTABLISH CLEAR LIMITS AND CRITERIA FOR CHANGE ORDERS.
NUMBER FOUR REQUIRE COMPETITIVE BIDDING WHEN THE SCOPE MATERIALLY CHANGES.
AND LASTLY, PROVIDE MEANINGFUL COUNCIL OVERSIGHT OF SIGNIFICANT CHANGES.
THE ISSUE BEGINS BEFORE THE CONTRACT IS AWARDED.
EFFECTIVE COST CONTROL BEGINS WITH THOROUGH PLANNING, WILL DEFINE PROJECT SCOPE, CLEAR SPECIFICATIONS, AND COMPREHENSIVE RFP, REALISTIC COST ESTIMATE AND STRONG PROJECT MANAGEMENT.
PROCESS THAT RELIES HEAVILY ON CHANGE ORDERS TO ADDRESS FORESEEABLE CHANGES CAN RESULT IN COST INCREASES, PROJECT EXTENSION, AND REDUCED COMPETITIVE OPPORTUNITIES IN A NUTSHELL.
AS FAR AS YOU'RE CONCERNED, I'D RECOMMEND THE SAME THING.
OKAY. GOTCHA. AND AGAIN, THE KEY ISSUE WE'RE LOOKING AT IS THE POSSIBILITY THAT WITH SO MUCH OF CERTAIN PROJECTS BEING THE PRODUCT OF WORK ORDERS, THAT PLANNING MIGHT NOT HAVE BEEN ADEQUATE AT THE BEGINNING, AND WE MIGHT HAVE SPENT TOO MUCH MONEY AGAIN.
AND SO I HAVE THE SAME SUGGESTION FOR THIS LETTER AS WE DID FOR THE PROFESSIONAL SERVICES.
AND THAT IS TO TO COME BACK NEXT MEETING AND FINALIZE THE LETTER.
SO I GUESS I'LL PUT THAT IN THE FORM OF A MOTION.
WHAT IS THAT NOISE. WHAT KIND OF NOISE? YEAH.
I'M GETTING FEEDBACK OUT OF THE MIC HERE. DO YOU.
SOUNDS LIKE WATER IS RUNNING. IT'S DOWN THERE.
IT'S NOT THE MIC. I DON'T KNOW WHAT'S IN THERE.
SOMETHING IS IN THERE. I DON'T KNOW WHAT THAT IS.
I DON'T KNOW EITHER. ARE YOUR FEET ARE GETTING WET. ALMOST IT WILL BE.
OKAY. JIM. YOU GOT TO THANK COMMISSIONER JESTE FOR NOT ONLY BRINGING THIS UP, BUT FOR MAKING A POINT OF IT EVERY MEETING. I THINK THAT WAS A REALLY GOOD SERVICE TO THE CITY.
AND, YOU KNOW, I DON'T THINK ANYBODY HAS ILL INTENT HERE.
I'VE LISTENED TO THE PUBLIC WORKS DIRECTOR AND I REALLY ADMIRE HIM.
HE IS A GREAT MANAGER. HE REALLY TRIES TO DO HIS BEST FOR THE CITY.
AND HE'S FIGURED OUT A WAY TO WORK THINGS SO THAT HE CAN GET WHAT HE WANTS DONE.
THAT HE THINKS IS REALLY GREAT FOR THE CITY AND, YOU KNOW, NOT MAKE WAVES.
[00:35:02]
BUT THE UNFORTUNATE PART ABOUT THAT IS THAT, AGAIN, IT CREATES THIS PERCEPTION THAT THERE'S SOMETHING FISHY GOING ON.AND I THINK HE CAN BE ALLOWED TO MEET HIS GOALS BUT HAVE MORE TRANSPARENCY.
AND, YOU KNOW, YEAH. OKAY. THERE WERE SOME CHANGE ORDERS THAT WERE APPROVED BY THE COUNCIL ALONG THE WAY, BUT THERE WAS SOME STUFF THAT WENT ON THAT DIDN'T SEEM TO BE APPROVED BY THE COUNCIL.
MAYBE IT WAS MAYBE IT WAS APPROVED BY THE MAYOR, BUT IT WASN'T REALLY DOCUMENTED AND UNDER CONTROL.
AND SO THAT'S ANOTHER ISSUE SIMILAR TO THE PROCUREMENT ISSUE, WHERE THERE SEEMS TO BE MONEY GOING OUT TO CONTRACTORS THAT'S NOT TRANSPARENT. AND AGAIN, THAT CREATES AN IMPRESSION IN THE PUBLIC.
AND YOU KNOW, YOU CAN REVIEW THE PRIOR SESSIONS WHERE COMMISSIONER JESTE WAS MAKING HIS POINTS ABOUT THAT, AND THERE WAS A LOT OF DATA COLLECTED ON THAT TOO.
THE WHOLE REPORT WAS DONE SHOWING THE VARIOUS CONTRACTS AND THE COSTS.
SO IF YOU GO BACK AND LOOK AT THAT, YOU CAN SEE WHAT THE HISTORY OF IT WAS.
SO I GUESS MY RECOMMENDATION TO THE COMMISSION IS, YEAH.
STUDY IT AND GO FORWARD AND MAKE A RECOMMENDATION TO THE COUNCIL.
YOU'RE PROVIDING THEM THE INFORMATION OF WHAT'S GOING ON.
AND ASK THEM TO HELP GUIDE YOU IN YOUR DELIBERATIONS.
THAT MIGHT BE A WAY TO DO IT WITHOUT CAUSING A BIG BROUHAHA.
OH, AND ONE THING I WANTED TO SAY ABOUT PROFESSIONAL SERVICES, I THINK WE DID DO.
THERE'S A CONTRACT ITEM THAT TALKS ABOUT SERVICES IN THE BUDGET.
AND I THINK WE I TOTALED IT UP ONE TIME. I THINK IT'S AROUND $10 MILLION DOLLARS, WHICH IS, WHAT, ABOUT 5 OR 8% OF THE BUDGET? SOMETHING LIKE THAT.
IS THAT ABOUT RIGHT? YEAH. SO THAT GIVES YOU AN IDEA OF HOW MUCH MONEY IS INVOLVED.
OKAY. OKAY. THANKS. ANYTHING ONLINE? NO ONE ON ZOOM AND NO ECOMMENTS. OKAY. I WOULD PROPOSE THEN AND FORM A MOTION THAT WE SIMPLY MOVE THIS FORWARD TO THE NEXT MEETING AND DO THE SAME THING WITH IT THAT WE'RE DOING WITH PROFESSIONAL SERVICES. SO MOVED.
SECOND. ALL IN FAVOR? AYE. OKAY. NOW, JUMPING BACK TO ITEM J.1, I SCARED AARON AT THE BEGINNING OF THE MEETING BY TELLING HIM HE HAD TO MAKE A 30 MINUTE PRESENTATION ON HIS BACKGROUND AND SO FORTH.
BUT YOU DO HAVE TO MAKE A 2 OR 3 MINUTE PRESENTATION.
AND WHAT WE'RE GOING TO DO IS GO DOWN THE LINE.
WE'D LIKE TO LEARN MORE ABOUT YOUR BACKGROUND, YOUR EDUCATION, WORK HISTORY, AND SO FORTH, WHERE YOU'VE LIVED AND SO FORTH. AND WE'LL TELL YOU THE SAME THING ABOUT US, JUST SO THAT EVERYONE KNOWS AS MUCH AS POSSIBLE ABOUT THE COMMISSION MEMBERS, I THINK THAT MAKES IT EASIER TO WORK WITH THEM.
SO YOU HAVE THE FLOOR FOR THE NEXT 2 OR 3 MINUTES.
OKAY. SO I'VE LIVED IN REDONDO FOR ABOUT 20 YEARS, LIVED IN SOUTH BAY FOR 20 YEARS.
COULD YOU SPEAK INTO THE MICROPHONE? I'M SORRY. I'VE LIVED IN REDONDO FOR 20 YEARS.
WHAT DISTRICT. I LIVE IN? DISTRICT TWO. I LIVE OUT BY BERYL HEIGHTS ELEMENTARY SCHOOL.
YEP. SO I WENT TO YOU WANT MY EDUCATION. I WENT TO CORNELL FOR UNDERGRAD WENT TO USC FOR GRAD SCHOOL, GOT MY MBA THERE.
FOCUSED ON CORPORATE FINANCE WENT FOCUSED ON MOST OF MY EXPERIENCE AND MY WORK EXPERIENCES IN THE ENTERTAINMENT INDUSTRY. SO I'VE DONE CORPORATE FINANCE AND HOME ENTERTAINMENT AT DISNEY AND 20TH CENTURY FOX THEN TRANSITIONED INTO ACCOUNT PLANNING AND THEN MORE INTO LIKE SALES ACCOUNT MANAGEMENT.
MOST RECENTLY I WAS OVER AT AMAZON. I WAS I WORKED ON THE RING DOORBELL BUSINESS AS WELL AS THE PRIME VIDEO MARKETPLACE BUSINESS MORE LIKE BUSINESS DEVELOPMENT TYPE ROLES.
ALSO ON THE SIDE, I'VE BEEN THE TREASURER FOR TEMPLE SHALOM OF THE SOUTH BAY FOR PAST LIKE SIX YEARS
[00:40:06]
AND, I HAVE TWO DAUGHTERS. I'VE GOT A SENIOR AT REDONDO AND A SEVENTH GRADER AT PARIS.HOW'S THAT? ANY QUESTIONS? GOOD, THANKS. SURE.
NICK. HI, NICK SHERBIN. RESIDENT OF REDONDO. MY WIFE'S PARENTS BUILT OUR HOUSE IN 1947, SO I HAVEN'T BEEN HERE THAT LONG. BUT SHE HAS.
ANYWAY EDUCATION WAS USC. AND MY WORK EXPERIENCE PRIMARILY STARTED IN THE ENTERTAINMENT BUSINESS WITH ENDED AT COLUMBIA PICTURES ASSISTANT CONTROLLER FOR FILMED ENTERTAINMENT AND THEN WENT INTO THE MANUFACTURING AREA WORKED AS A MANAGER OF COST ACCOUNTING FOR A SWISS BIOTECH COMPANY FOR FOUR YEARS, CREATED THEIR COST ACCOUNTING SYSTEM. THEN WENT INTO MANUFACTURING AND MANUFACTURING COST ACCOUNTING AND I'M NOW A CONTROLLER FOR AN AEROSPACE ELECTRONICS MANUFACTURING COMPANY.
BUT MY EXPERIENCE HAS PRETTY MUCH BEEN BUDGET COST CONTROLS.
AND OVERALL CORPORATE CONTROL AND FINANCE. JERRY WOODHAM I'M A TRANSPLANTED MIDWESTERNER. WE MOVED HERE TEN YEARS AGO. I RETIRED EIGHT YEARS AGO.
FOR THE LAST 15 YEARS OF MY CAREER, I WAS AN INVESTMENT CONSULTANT.
WE WORKED WITH FOUNDATIONS, ENDOWMENTS, AND PENSION FUNDS, HELPING THEM STRUCTURE THEIR INVESTMENT PROGRAM FOR THE 20 YEARS PRIOR TO THAT, I WAS ON THE OTHER SIDE OF THE TABLE AS THE CHIEF INVESTMENT OFFICER FOR THREE DIFFERENT INSTITUTIONS.
EDUCATED AT UNDERGRAD AT UNIVERSITY OF MISSOURI, HALF OF A MASTER'S AT UNIVERSITY OF MISSOURI, AND THEN DID AN MBA AT CHAPMAN. ME AND MY WIFE AND I, WE HAVE FIVE KIDS AND NINE GRANDKIDS. OH, WOW. AND THAT'S WHY WE MOVED. THAT'S WHY WE MOVED HERE WAS TO BE CLOSE TO.
ALL THREE DAUGHTERS ARE IN THE LA AREA AND SEVEN OF THE GRANDKIDS.
SO. OKAY. IT WAS A FAMILY MOVE. WOW. LET'S SEE.
I HAVE BOTH PRIVATE AND PUBLIC SECTOR EXPERIENCE.
MOSTLY PRIVATE. I CAME TO PUBLIC SECTOR ABOUT TEN YEARS AGO.
MY UNDERGRAD WAS IN BUSINESS. THEN I GOT MY MPA PUBLIC ADMINISTRATION DEGREE BECAUSE I WORK IN GOVERNMENT USELESS COMPLETELY. I WORK FOR A CITY, SO THIS IS WHAT I DO AT WORK ALL DAY LONG.
AND NOW I COME HERE AND DO THE SAME THING. THAT'S ALL.
I KNOW. I DIDN'T BRING MY GLASSES TODAY. I'M LIKE, YOU LOOK FAMILIAR.
I'M LIKE, OKAY. HOW FUNNY. SO WE KNOW EACH OTHER. IT'S BEEN A LONG TIME.
LONG TIME. SO YEAH, I'VE LIVED IN REDONDO NOW ABOUT 12 YEARS.
AND HAVE TWINS WHO ARE SOPHOMORES AT REDONDO UNION.
AND LET ME INTERRUPT AT THIS POINT TO WE'LL LET VIJAY COMBINE HIS A LITTLE BIT OF HIS BACKGROUND AND SO FORTH WITH ANY COMMENTS HE HAS REGARDING THE COMMISSION, ITS ACTIVITIES, AND HIS HOPES FOR THE CITY.
WE'VE BEEN FORTUNATE TO HAVE VIJAY ON THE BUDGET AND FINANCE COMMISSION FOR IS IT ONE TERM OR 2.
TWO. EQUAL TO 1 AND A HALF. ONE AND A HALF. OKAY.
SO HE'LL BE HAPPY TO SEE THAT WE'RE FINALLY BRINGING THAT TO REST.
SO VIJAY. FIRST OF ALL, THANK YOU VERY MUCH. ALL OF YOU, FOR THE SUPPORT AND PROFESSIONALISM. AND I, YOU, EACH OF YOU HAVE UNIQUE TALENTS AND EXPERIENCE AND PERSPECTIVE AND I LEARNED A LOT. SO THAT WAS A VERY INTERESTING PERIOD IN MY LIFE WHERE I GOT INVOLVED WITH SOMETHING THAT I HAD NOT DONE BEFORE, BUT IT WAS A LEARNING EXPERIENCE AND I GOT A TREMENDOUS AMOUNT OF SUPPORT AND HELP.
ALSO, I WANT TO APPRECIATE AND THANK STEPHANIE FOR SUPPORTING ALL OUR INITIATIVES, AND
[00:45:03]
SHE WAS THE ONE WHO WAS INSTRUMENTAL IN DIGGING UP ALL THE DATA ON THE CIP.SOMETHING THAT WE STRUGGLED FOR ALMOST TWO YEARS TO GET.
FINALLY, WE GOT IT WITH ALL THE DETAILS. SO THAT WAS A TREMENDOUS HELP.
SO I CAME TO THIS COUNTRY IN MARCH 1969, AND FOUR MONTHS LATER, I SAW NEIL ARMSTRONG WALK ON THE MOON. SO WE NOT ONLY SENT A MAN TO THE MOON, BUT WE ALSO BROUGHT HIM BACK SAFE. AND THAT WAS WHEN I REALIZED THAT THIS COUNTRY HAS ENORMOUS POTENTIAL.
AND INDIVIDUALLY, THERE IS NO LIMIT TO WHAT YOU CAN ACHIEVE IF YOU SET YOUR MIND TO IT.
AND YOU IF YOU WORK REALLY HARD. AND THIS IS THE LAND OF OPPORTUNITY.
SINCE THEN, FOR 40 YEARS, I'VE LIVED IN SIX STATES, MOSTLY MIDWEST.
STARTED IN PENNSYLVANIA. THEN MOST OF THE YEARS I SPENT IN ILLINOIS, OHIO, AND INDIANA.
SO I'VE GONE THROUGH ALL THE WINTERS, ALL THE BLIZZARDS, ALL THE SNOWSTORMS. BELOW ZERO TEMPERATURES FOR WEEKS AT A TIME. SO WHEN I RETIRED IN 2012, CAME BACK TO REDONDO BEACH, I MUST SAY, IN ALL MY LIFE I CONSIDER THIS AS THE BEST PLACE TO LIVE, ESPECIALLY FOR SENIORS.
SO IT'S REALLY TO ME CALIFORNIA AND REDONDO BEACH IN PARTICULAR, IT IS AS CLOSE TO PARADISE AS YOU CAN GET. AND THIS CITY IS A WONDERFUL PLACE TO LIVE FOR A YOUNGER GENERATION TO GO TO SCHOOL. WE GOT SOME TOP NOTCH SCHOOLS IN REDONDO BEACH, MANHATTAN BEACH, AS WELL AS IN LOS ANGELES. SO THIS IS ONE REASON WHY I WANTED TO GET INVOLVED WITH THIS. AND THE ONE THING I HAVE NOTICED IS WE HAVE BEEN VERY FORTUNATE.
I'VE BEEN HERE FOR 14 YEARS, AND THIS CITY HAS BEEN VERY FORTUNATE IN NOT HAVING ANY OF THE UNPLANNED EVENTS, CALAMITIES LIKE, YOU KNOW LANDSLIDES, MUDSLIDES OR EARTHQUAKES OR FIRES OR RIOTS, YOU NAME IT. OTHER CITIES LIKE PALISADES, EVEN LOS ANGELES, NORTHRIDGE, THEY'VE GONE THROUGH ALL THAT.
WE DID NOT. SO THE DOWNSIDE OF THAT IS IT BREEDS A COMPLACENCY AND THAT IS NOT GOOD FOR ANY BUSINESS, ESPECIALLY FOR A GOVERNMENT ENTITY LIKE REDONDO BEACH.
AND SO THIS IS ONE OF THE THINGS THAT I WOULD LIKE TO EMPHASIZE IN THE FUTURE.
I THINK THERE IS A TREMENDOUS OPPORTUNITY. WHAT I CONSIDER AS A PROBLEM IS ALSO AN OPPORTUNITY.
THE COMPLACENCY IS ONE THING. ABOUT 30 OR 40 YEARS AGO I READ A VERY FASCINATING BOOK AND THE TITLE OF THE BOOK WAS ONLY PARANOIDS SURVIVE AND IT WAS WRITTEN BY ANDY GROVE.
HE WAS THE CO-FOUNDER OF INTEL CORPORATION, AND THAT CORPORATION WAS ON VERY UNCERTAIN GROUNDS, AND IT COULD HAVE GONE BANKRUPT OR COULD HAVE JUST BEEN WIPED OUT.
SO THINGS WERE GOING WELL AT THAT TIME. BUT HE STARTED LOOKING INTO THIS AND HE SAID, WE GOT SOME STORM CLOUDS GATHERING AND WE NEED TO DO SOMETHING. SO I WOULD STRONGLY RECOMMEND ALL OF YOU WHEN YOU GET A CHANCE TO READ THAT BOOK, BECAUSE COMPLACENCY IS OPPOSITE OF BEING PARANOID.
AND NOW HE TALKS ABOUT THE EXTREME. BUT YOU NEVER KNOW WHEN SOMETHING LIKE THIS IS GOING TO HIT AND THE EARTHQUAKE ESPECIALLY, OR THE FIRES, THE PALISADES, THE NORTHRIDGE EARTHQUAKE IN PALOS VERDES, WE HAD THE LANDSLIDES.
THESE ARE THE THINGS WE DON'T PLAN. WE DON'T HAVE ENOUGH FUNDING TO GET OVER IT. AND SO THIS IS WHY I THINK THIS IS ONE OF THE ISSUES THAT I'VE BROUGHT UP IN THE PAST IN OUR MEETINGS.
[00:50:03]
COMPLACENCY. AND THE OTHER THING IS LEADERSHIP VACUUM.WE HAVE TALKED ABOUT ALL THESE AND WE NOW WE HAVE TWO LETTERS GOING TO THE CITY COUNCIL.
AND MY IMPRESSION IS, AND AGAIN, I'M NOT POINTING FINGERS, I'M NOT BEING CRITICAL.
THIS IS JUST MY OBSERVATION. THE MAYOR OF THE CITY IS REALLY, IN FACT, CEO OF REDONDO BEACH INC. AND ONE THING I LEARNED WHEN I WAS IN FORT WAYNE FOR ABOUT SEVEN YEARS 25 YEARS AGO, THE MAYOR WAS ELECTED WITH A BUSINESS BACKGROUND AND HE MADE SOME SIGNIFICANT CHANGES IN THE OPERATING PROCEDURES.
HE BROUGHT THE TOTAL QUALITY MANAGEMENT PHILOSOPHY AND PRINCIPLE.
HE TRAINED THE PEOPLE AND WITHIN THREE YEARS, THEY SAW THE BENEFITS OF HAVING THAT DISCIPLINE.
SO HE TOOK DECISIVE ACTIONS AND HE GOT THINGS THROUGH.
SO WE HAVE THIS STATE OF CALIFORNIA AS WELL AS L.A.
WE HAVE SPENT BILLIONS OF DOLLARS, LIKE THE HIGH SPEED RAIL PROJECT.
A MONTH AGO, I READ AN ARTICLE ABOUT THE PEOPLE MOVER PROJECT AT FOR THE LAX.
AND INTERESTINGLY ENOUGH IT IS OVER THE BUDGET BY 800 PLUS MILLION DOLLARS.
AND THAT WAS ALL ATTRIBUTED TO GUESS WHAT? CHANGE ORDERS.
SO YOU CAN SEE, YOU CAN GO TO ONE EXTREME WITH THE CHANGE ORDERS AND HAVE HUGE OVERRUNS AND THE PROJECT LIKE THE HIGH SPEED RAIL PROJECT, WE HAVEN'T LAID EVEN ONE TRACK AFTER ALL THESE YEARS OF SPENDING BILLIONS OF DOLLARS.
SO BEING DECISIVE, I THINK, IS SOMETHING THAT IS BADLY NEEDED.
WE MADE A RECOMMENDATION. OUR RESERVES ARE ABSOLUTE MINIMUM.
I THINK IT'S ONE MONTH'S BUDGET, WHICH IS NOT REALLY ENOUGH IN CASE A CALAMITY STRIKES UNFORTUNATELY THIS CITY. SO WE NEED TO MAKE SOME PROVISION TO INCREASE THE RESERVES.
SO THAT'S JUST ONE OF THE THINGS. CHANGE ORDER CAN AND BEING DECISIVE THERE IS AN EXCELLENT EXAMPLE I READ RECENTLY, IT IS, YOU KNOW, 2023, JUST THREE YEARS AGO, I-95 BRIDGE IN PENNSYLVANIA THE BRIDGE IS IT COLLAPSED. I DON'T KNOW WHY OR HOW.
AND THAT WAS A SIX LANE BRIDGE. 160,000 CARS GO UP AND DOWN THE EAST COAST.
SO ANYTHING OF THAT NATURE. SOMETHING AS BIG AS THAT IT WAS BELIEVE IT OR NOT, IT WAS AN ALTERNATIVE ROAD WITH SIX LANES WAS BUILT AND COMMISSIONED WITHIN 12 DAYS OF THE ACCIDENT. 12 DAYS. LET THAT SINK IN.
12 DAYS. SIX LANE BRIDGE COLLAPSES IN 12 DAYS THEY GOT A NEW SIX LANE ROAD OPEN, AND THE ORIGINAL BRIDGE WAS REPAIRED IN LESS THAN A YEAR. NOW, COMPARE THAT WITH OUR ANY OF OUR PROJECTS IN THE L.A. COUNTY OR CALIFORNIA. AND YOU WILL SEE THERE'S A TREMENDOUS COST OVERRUNS, TREMENDOUS NUMBER OF DELAYS.
AND IT JUST GOES ON AND ON. AND SO THIS IS WHERE THE TAXPAYERS DOLLARS ARE GOING.
SO WE HAVE TWO EXTREMES. AND I HAVE ALWAYS LEARNED BEING IN THE PUBLIC SECTOR FOR ALMOST 50 YEARS, I'VE SPENT MY LIFE IN LARGE WORKING FOR LARGE CORPORATIONS THAT YOU HAVE TO BE DECISIVE. YOU HAVE TO HAVE A PLAN. WE HAD, I THINK 3 OR 4 MONTHS AGO, WE HAD A STRATEGIC PLANNING SESSION FOR THIS CITY ADMINISTRATION. I THINK COUNCILMEMBERS PARTICIPATED IN THAT.
THERE WAS NO STRATEGY. THERE WAS NO PLANNING.
SO THOSE ARE THE THINGS WE NEED TO REALLY FOCUS ON.
AND I THINK UNDER THE BUDGET AND FINANCE THESE TWO WORDS, PRACTICALLY EVERYTHING CAN COME IN.
SO I THINK THIS IS AN OPPORTUNITY. WHAT I SEE AS A PROBLEM IS ALSO AN OPPORTUNITY.
[00:55:02]
THIS COMMISSION CAN TAKE SOME CONCRETE STEPS TO PUSH FOR SOME CHANGES AND GET THEM IN AN EXPEDIENT WAY, RATHER THAN WATCHING THESE THINGS DRAG ON FOR TOO LONG.AND I THINK THAT WAY WILL BE READY FOR ANYTHING THAT MIGHT HAPPEN.
HOPE IT DOESN'T HAPPEN, BUT HOPE IS NOT A PLAN.
SO THIS IS WHAT I WOULD LIKE TO LEAVE WITH THE COMMISSIONERS, THAT WE HAVE TREMENDOUS OPPORTUNITIES. AND I THINK THE LEADERSHIP IS SOMETHING THAT IS WAITING FOR SOMEBODY TO TAKE HOLD OF AND PUSH. AND I CAN ALMOST GUARANTEE YOU YOU'RE NOT GOING TO GET ANY RESISTANCE OR OPPOSITION IF YOU DO IT IN A PROFESSIONAL WAY, AS WE HAVE CONDUCTED EVERY MEETING. SO AGAIN, THANK YOU SO MUCH FOR EVERYONE FOR TEACHING ME A LOT OF THINGS THAT I DIDN'T KNOW WORKING WITH ME, SUPPORTING ME AND COOPERATING WITH ME.
SO I WISH ALL OF YOU THE BEST OF EVERYTHING. AND AS A TAXPAYER, I'LL BE VERY EAGERLY, LOOKING FORWARD TO WATCHING THE PROGRESS.
AND I'M ALWAYS AVAILABLE IF AND WHEN YOU EVER NEED MY ASSISTANCE, OR YOU THINK I MIGHT BE OF ANY HELP FROM CROSSING GUARD ALL THE WAY TO JIM'S BUDDY.
THANK YOU AGAIN. APPRECIATE IT. OKAY. THANKS, VIJAY.
ONE QUESTION TO STEPHANIE, BY THE WAY. WE'RE HAVING COFFEE AND CUPCAKES.
STEPHANIE SPENT A LOT OF TIME IN THE KITCHEN TODAY MAKING THE CUPCAKES AND COFFEE. BOTH. SO.
RIGHT. SO MUCH TIME. A QUESTION, A QUESTION BECAUSE OF THE ABSENCE OF ONE OF OUR NEW COMMISSIONERS.
WHAT IS THE CURRENT REGULATION THAT WE'RE LOOKING AT FOR ABSENCES? IT HAS CHANGED. AND I WAS AS YOU AND I TALKED ABOUT IT, I WAS SURPRISED AT SOME OF THE CHANGES.
IS THERE SUCH A THING AS AN EXCUSED ABSENCE NOW THAT DOESN'T COUNT? OR IS IT TWO ABSENCES AND THAT'S IT. SO I BELIEVE IT'S ACTUALLY THREE ABSENCES AFTER THREE ABSENCES.
WELL, I GUESS IT'S JUST TWO APPROVED. YOU'RE OUT.
THIS IS THIS DOES HAPPEN TO BE AN EXCUSED ABSENCE.
WE GOT NOTICE FROM THE CITY CLERK TODAY. IT'S A VERY VERY OUT OF THE ORDINARY SITUATION.
SO I WILL LEAVE THAT FULL DISCUSSION TO THE CITY CLERK'S OFFICE.
THEY'RE GOING TO HOLD AN ORIENTATION FOR BOTH NEW MEMBERS AND OPEN TO ALL MEMBERS ON SEPTEMBER 29TH.
WE'LL SHARE THAT EMAIL SO EVERYONE'S AWARE, BUT I THINK THAT'S A GOOD PLACE FOR YOU KNOW, THE CITY CLERK TO BE ABLE TO GO INTO ALL THE DETAILS OF THE NEW RULES FOR THE COMMISSION. BUT APART FROM EXTRAORDINARY CIRCUMSTANCES, IT IS I DO NOT BELIEVE THERE ARE EXCUSED ABSENCES AS THERE USED TO BE IN THE PAST. AND IT'S THREE MEETING OR TWO AND YOU'RE FINE.
AND THE THIRD ONE, YOU MAY BE RECEIVING A LETTER FROM COUNCIL.
OKAY. IT'S MY UNDERSTANDING. ITEM J.4 ON THE AGENDA IS THE DISCUSSION OF THE OCTOBER.
SORRY. BEFORE YOU MOVE ON, THERE WAS NO PUBLIC COMMENT ON THE INTRODUCTIONS.
OKAY. AS YOU REMEMBER THE LAST MEETING, WE DECIDED THAT WE WOULD ADOPT A POLICY OF DISCUSSING POTENTIAL ISSUES FOR THE NEXT MEETING AND DECIDE WHETHER WE WANTED TO HAVE THAT MEETING OR NOT.
NOW WE'VE DEFERRED TWO ITEMS TWO VERY IMPORTANT ITEMS TO THE OCTOBER MEETING.
SO IT SEEMS TO ME THAT THAT DECISION HAS BEEN MADE.
YOU, STEPHANIE, YOU HAD SOME ISSUES THAT WE THOUGHT WE WERE BRINGING MIGHT BRING TO THIS MEETING, BUT WE'RE NOT. SO ARE THOSE AVAILABLE? ARE THOSE GOING TO COME TO US IN OCTOBER? YES. SO THE COMMISSION IS GOING TO HAVE A QUITE A FULL OCTOBER AGENDA.
WE WILL HAVE A PRESENTATION ON PROGRESS OF BOND ISSUANCE FOR OUR MEASURE FP GENERAL OBLIGATION BOND.
AND WE WILL HAVE OUR YEAR END CARRYOVER FINANCIAL REPORT.
SO WE WILL HAVE QUITE A BIG AGENDA. AND I THINK DEFINITELY WE WILL WANT TO HAVE THE NEXT MEETING.
OKAY. ANY COMMENTS ON THAT? IT LOOKS LIKE WE WILL BE HERE IN OCTOBER.
WE HAVE TO MEET IN OCTOBER. ITEM J.5. SORRY. I'M SORRY.
JUST PUBLIC COMMENT BEFORE WE MOVE ON. ANY PUBLIC COMMENT?
[01:00:02]
OKAY. NO ONE ON ZOOM AND NO COMMENTS. OKAY. COMMISSION REFERRALS TO STAFF.SO YOU CAN LOOK FORWARD TO THAT. NICK. ANYTHING? NO, NOTHING TO ADD. NOTHING FROM YOU. OKAY. NONE FROM ME.
OKAY. COULD I GET A MOTION TO ADJOURN? MOTION.
SECOND. EVERYONE IN FAVOR? ALL IN FAVOR? AYE.
OKAY. NOW WE'RE GOING TO HAVE CUPCAKES AND COFFEE.
* This transcript was compiled from uncorrected Closed Captioning.