[00:03:39]
[00:05:13]
OH, OKAY.ALRIGHT, CHAIR, WE'RE READY WHEN YOU ARE
[CALL TO ORDER]
TO CALL THE MEETING TO ORDER FOR THE ECONOMIC DEVELOPMENT COMMISSION.[ROLL CALL]
WE GET THE ROLL CALL? COMMISSIONER HAKE? HERE.COMMISSIONER NCH, VICE CHAIR THOMAS HERE.
AND FOR THE RECORD, COMMISSIONER NOVIN AND COMMISSIONER W ARE EXCUSE ABSENCES.
AND I'M REALLY HAPPY TO BE HERE ON JUNE 3RD.
WAS JUST IN KAUAI AND I'M REALLY GLAD I CAME BACK.
YOU GOTTA REALLY IT IN
HEY, THERE WAS A LONG AWAITED VACATION
PLEASE MAKE SURE HER GLOW IN THE MINUTES.
SO THANKS EVERYONE FOR BEING HERE TODAY.
UM, LET'S, WHY DON'T WE MOVE TO AGENDA ITEM NUMBER ONE.
COULD YOU PLEASE READ THAT OUT? ITEM
[1. 26-55222 Recommendation to approve the minutes for the Economic Development Commission meeting of Wednesday, May 6, 2026. Suggested Action: Approve recommendation. ]
ONE.RECOMMENDATION TO APPROVE THE MINUTES FOR THE ECONOMIC DEVELOPMENT COMMISSION MEETING OF WEDNESDAY MAY 6TH, 2026.
COULD I HAVE A MOTION FOR THAT? AND A SECOND? A MOTION.
MAY I HAVE THAT MOVER AGAIN FOR THE MOTION? COMMISSIONER SMITH AND A SECOND FROM COMMISSIONER HAWKINS.
ARE THERE ANY QUESTIONS OR CORRECTIONS FOR THE MINUTES? OKAY, HEARING NONE.
UM, ANY PUBLIC COMMENTS ON THE MINUTES? SEEING NONE FOR PUBLIC COMMENT.
[00:10:01]
OKAY, GREAT.UM, CLERK, COULD YOU PLEASE TAKE THE VOTE? ARE YOU, ARE YOU ABLE TO SEE IT ON YOUR TABLETS? THAT'S NO PROBLEM.
UM, LET'S MOVE ON TO AGENDA NUMBER TWO.
COULD YOU PLEASE READ THAT OUT? ITEM
[2. 26-55230 Recommendation to receive and file a presentation from the Office of Ethics and Transparency regarding updates to the Ethics program. Suggested Action: Approve recommendation. ]
TWO.RECOMMENDATION TO RECEIVE ON FILE PRESENTATION FROM THE OFFICE OF ETHICS AND TRANSPARENCY REGARDING UPDATES TO THE ETHICS PROGRAM.
OKAY, COULD WE HAVE A MOTION AND A SECOND? SO MOVED.
OKAY, SO JULIAN, DO YOU WANT TO DO AN INTRODUCTION FOR THE PRESENTATION? WE'LL, WE'LL HAVE HEATHER DO IT.
UM, SO MY NAME IS HEATHER VAN WICK.
I AM THE ETHICS OFFICER FOR THE CITY IN THE CITY MANAGER'S OFFICE.
SO, UH, WHAT WE'VE BEEN TRYING TO DO, THE MAYOR'S OFFICE, THE CITY ATTORNEY'S OFFICE, THE CLERK'S OFFICE, AND I IS JUST ENSURE THAT WE VISIT THE COMMISSIONS EACH YEAR, UH, FOR A BROWN ACT REFRESHER.
AND, UH, JUST TO TALK A LITTLE BIT ABOUT ETHICS, UM, USUALLY THE MAYOR'S OFFICE JOINS ME.
IT'S JUST THEIR WAY OF STOPPING BY TO SAY HI AS WELL.
UM, SO ANYHOW, THAT'S ALL TO SAY THAT THIS HAS JUST BECOME AN IMPORTANT PART OF THE ETHICS PROGRAM.
SO I'M JUST GONNA SHARE A LITTLE BIT ABOUT WHAT WE DID LAST YEAR AND WHAT WE'RE DOING THIS YEAR AND JUST OFFER YOU A FEW REMINDERS.
SO, THE OFFICE OF ETHICS AND TRANSPARENCY, OUR MISSION IS PRETTY SIMPLE.
IT'S TO BUILD TRUST AMONG THE PUBLIC, OUR EMPLOYEES AND OFFICIALS, AND TO PROVIDE NECESSARY RESOURCES TO MAKE IMPARTIAL DECISIONS AS STEWARDS OF PUBLIC RESOURCES.
SO REALLY WHAT WE DO, WE'RE NOT A, AN INVESTIGATORY BODY OR ENFORCEMENT BODY.
UM, GUIDANCE AND EDUCATION IS REALLY OUR MAIN FOCUS.
UH, SO WE FOCUS ON BUILDING OUT RESOURCES.
WE ALSO HAVE AN ETHICS HELPLINE, UH, TRANSPARENCY, PUBLIC TRUST.
WE MANAGE THE PUBLIC RECORDS ACT PROGRAM.
AND THEN OF COURSE, WE'RE ALWAYS WORKING IN PARTNERSHIP WITH OUR CITY DEPARTMENTS.
SO SOME OF OUR AC ACCOMPLISHMENTS LAST YEAR, UM, IT'S CRAZY TO ME THAT IT'S JUNE, BUT THIS IS STILL RELEVANT.
UM, SO LAST YEAR WE LAUNCHED A FIVE YEAR STRATEGIC ROADMAP.
UH, WE ADVANCED A UNIFIED CITYWIDE ETHICS FRAMEWORK.
AND THIS IS WHAT WE'RE CALLING THE FAIR ACT.
AND THIS IS STILL MAKING ITS WAY THROUGH THE CITY COUNCIL PROCESS.
BUT AT THE END OF THE PROCESS, UM, WE WILL HAVE, UH, A NEW ETHICS ORDINANCE.
AND WHAT WE'RE TRYING TO DO WITH THAT ORDINANCE IS JUST CENTRALIZE ALL OF OUR, UM, ALL OF THE LAWS THAT OFFICIALS ARE REQUIRED TO ABIDE BY ALL OF THE PROCESSES AND BEST PRACTICES.
WE'RE JUST TRYING TO MAKE IT A LITTLE BIT EASIER TO ACCESS.
UH, WE ALSO DEVELOPED A CITY'S FRAMEWORK FOR, OR THE CITY'S FRAMEWORK FOR ETHICAL DECISION MAKING.
AND THEN WE BUILT OUT A MASTER COMMUNICATIONS AND EDUCATION PLAN.
AND THEN, AS I MENTIONED AT THE BEGINNING, WE ALSO DO OUTREACH, MAINLY WHAT WE CALL THIS ROAD SHOW AND SUPPORTING BOARDS AND COMMISSIONS AND STAFF LIAISONS.
AND ADDITIONALLY, UM, THE CLERK'S OFFICE AND I PARTNER ON, UH, WORKSHOPS PERIODICALLY FOR OUR COMMISSION LIAISONS.
WHAT, OH, AND THIS IS JUST TO SHOW YOU OUR FRAMEWORK.
UM, IT'S JUST A, A QUESTION, A QUESTION PROCESS, UH, TO HELP YOU NAVIGATE, UM, CERTAIN ISSUES THAT COME UP WHEN YOU FIND YOURSELF IN THE GRAY AREA.
SO, WHAT WE'VE BEEN WORKING ON THIS YEAR, AS I ALREADY SHARED WITH YOU ABOUT THE FAIR ACT, UM, BUILDING OUT, UM, DECISION MAKING TOOLS, UPDATING THE TOOLS THAT WE HAVE, UM, WORKING ON SIMPLIFYING ETHICS.
SO IT'S EASY TO UNDERSTAND LESS JARGON, MORE REAL LIFE EXAMPLES.
[00:15:01]
THE ETHICS HELPLINE AND GUIDANCE.SO NOW THIS IS, WHEN WE TALK ABOUT THE IMPORTANCE OR MORE IMPORTANT STUFF, IT'S WHAT ADVISORY BODIES DO AND WHY ETHICS MATTERS.
SO WE KNOW THAT ADVISORY BODIES, YOUR JOB IS TO ADVISE, RECOMMEND, AND INFORM.
AND IN DOING THAT, YOU SHAPE PUBLIC TRUST.
YOUR RECOMMENDATIONS DIRECTLY INFLUENCE CITY DECISIONS.
SO ALL THAT TO SAY IS THAT YOUR ROLE REALLY MATTERS.
SO ADVISORY, YOU DON'T NECESSARILY MAKE FINAL DECISIONS, BUT YOUR RECOMMENDATIONS DO COUNT.
UM, I'VE SEEN THEM INFLUENCE COUNCIL ACTIONS, CITY STAFF ACTIONS, AND OF COURSE PUBLIC PERCEPTION.
AND YOU'LL SEE LITTLE POINTY FINGERS THROUGHOUT, UH, THE PRESENTATION.
THIS IS JUST FRIENDLY REMINDERS OF THINGS, UH, YOU'RE REQUIRED TO DO AS, UH, COMMISSIONERS.
SO ANNUAL REPORTS, UH, THOSE ARE DUE JUNE 1ST FORM 700.
HOPEFULLY THOSE WERE FILED ON TIME.
IF NOT, YOU'RE STILL HEARING FROM THE CITY CLERK'S OFFICE.
SO COMMISSION MEETINGS, THEY HAVE TO BE CONDUCTED IN ACCORDANCE WITH THE BROWN ACT AND A TOY'S GOING TO GO OVER THAT IN MUCH MORE DETAIL IN JUST A FEW MINUTES.
UH, THEY ALSO HAVE TO BE CONDUCTED IN ACCORDANCE WITH YOUR BYLAWS IN ROBERT'S RULES OF ORDER.
WHY? BECAUSE OPEN AND TRANSPARENT DELIBERATION MEAN EQUAL ACCESS TO INFORMATION MEANS THAT WE HAVE PUBLIC TRUST IN THE PROCESS.
ANOTHER REMINDER, UNBIASED DECISION MAKING.
SO COMMISSIONERS MUST REMAIN IMPARTIAL.
AND OBJECTIVE DECISIONS SHOULD BE BASED ON THE RECORD FACTS AND ADOPTED CRITERIA.
SO EVEN THE APPEARANCE OF BIAS OF BIAS CAN UNDERMINE PUBLIC TRUST.
SO THAT JUST MEANS ALL DECISIONS HAVE TO BE MADE BEHIND THE DAAS, NOT BEFORE YOU GET HERE.
PUBLIC CONFIDENCE DEPENDS ON FAIRNESS, NOT JUST OUTCOMES.
SO ANOTHER REMINDER, ONLY THE CHAIR OR ANOTHER MEMBER FORMALLY AUTHORIZED BY THE COMMISSION MAY SPEAK ON BEHALF OF THE COMMISSION.
AND THIS APPLIES TO ADDRESSING CITY COUNCIL AND OTHER PUBLIC MEETINGS, EMAILS OR LETTERS, UM, SOCIAL MEDIA POSTS, AND THEN SIGNATURES, ENDORSEMENTS, OR PUBLIC STATEMENTS.
THIS MATTER IS BECAUSE FORMAL APPROVAL PROCESSES HELP ENSURE STATEMENTS MADE OUTSIDE OF MEETINGS REFLECT THE COMMISSION'S COLLECTIVE POSITION.
IT MEANS THEY ALSO ALIGN WITH ADOPTED OBJECTIVES AND DO NOT PROMOTE PERSONAL AGENDAS OR BIASES.
YOU MAY SPEAK PERSONALLY AS A RESIDENT, BUT AGAIN, NOT OFFICIALLY AS A COMMISSIONER WITHOUT AUTHORIZATION, MISUSE OF AUTHORITY CAN OCCUR WHEN YOUR PERSONAL VIEWS APPEAR TO BE THE OFFICIAL POSITION.
AND JUST A REMINDER, THESE ARE THE TRAININGS THAT YOU ARE REQUIRED TO TAKE SOME OF THEM ANNUALLY, SOME OF THEM BI-ANNUALLY, UH, INCLUDING OUR CODE OF CONDUCT AND ETHICS.
YOU'VE GOT THE STATE AND CITY REQUIRED HARASSMENT TRAINING FOR CALIFORNIA EMPLOYEES.
THIS IS EVERY TWO YEARS AS IS THE STATE REQUIRED AB 1234 ETHICS TRAINING.
AND THEN, UH, THERE'S A COUPLE TRAININGS THAT YOU HAVE TO TAKE WITHIN ASSUMING OFFICE.
THE FUN NEWS IS THAT, UM, THERE WERE NO COMMISSIONERS, UH, KICKED OFF COMMISSIONS THIS PAST YEAR FOR NON-COMPLIANCE.
UM, THAT'S A HARD JOB FOR THE CITY ATTORNEY TO ENFORCE.
UM, BUT THEY DO, THEY TAKE IT SERIOUSLY.
AND OF COURSE, ALL THESE TRAININGS LIVE AND LEARN AND YOU CAN ACCESS THEM THROUGH YOUR LEARN ACCOUNTS.
THIS IS OUR HELPLINE THAT I MENTIONED EARLIER.
IT IS AVAILABLE TO THE PUBLIC 24 7 IN CONFIDENTIAL AND ANONYMOUS, IF THAT IS PREFERRED.
SO JUST A COUPLE KEY TAKEAWAYS.
AGAIN, YOUR ROLE IS ADVISORY, NOT INDIVIDUAL AUTHORITY.
YOU MAKE DECISIONS TOGETHER, KNOW WHEN YOU'RE SPEAKING PERSONALLY VERSUS OFFICIALLY BECAUSE FORMAL APPROVAL PROCESSES MATTER.
REMAIN FAIR, IMPARTIAL AND UNBIASED.
AND FOLLOW MEETING RULES AND PROCEDURES, COMPLETE REQUIRED TRAININGS AND DISCLOSURES.
AND IF YOU'RE NOT SURE ABOUT ANYTHING, ASK A OR NOT A TOY.
DEFINITELY CARLA WILL PROBABLY KNOW BEFORE JULIAN PROBLEM.
WE'RE GOOD FRIENDS, JULIAN AND I, I'M ALLOWED, UM, AND THIS IS JUST A LIST OF RESOURCES FOR YOU TO REFERENCE.
I LIKE TO HIGHLIGHT, UH, THE ETHICS GUIDE FOR LONG BEACH CITY OFFICIALS AND EMPLOYEES.
UH, THIS IS MANAGED BY OUR CITY ATTORNEY'S OFFICE.
[00:20:01]
UM, BUT IT DOES A DEEPER DIVE INTO THE LEGAL REQUIREMENTS YOU ALL HAVE AS APPOINTED OFFICIALS.AND WE ALSO HAVE THE COMMISSION BOARD AND COMMITTEE HANDBOOK.
THIS IS MANAGED BY OUR CITY CLERK.
UM, AND IF YOU HAVE A QUESTION ABOUT SOMETHING, CHANCES ARE THE ANSWERS IN THIS HANDBOOK.
UM, I'M ALWAYS SURPRISED AT HOW MUCH IS IN THAT HANDBOOK.
I USUALLY CALL THE CLERK FIRST.
AND THEN WE ALSO HAVE CALIFORNIA LEAGUE OF CITIES.
UH, THIS IS A VERY IN DEPTH LOOK AT THE BROWN ACTS, AND THAT'S MY PRESENTATION FOR THIS YEAR.
OKAY, THANK YOU VERY MUCH, HEATHER.
THANKS FOR KEEPING US ON TOP OF ALL THE, UH, ETHICS TRAININGS AND ALL THE TRAININGS.
UM, SO DO I HAVE ANY QUESTIONS OR ANY COMMENTS FROM ANY, ANY OF THE COMMISSIONERS? COMMISSIONER MATOYER? YEAH, THANK YOU, HEATHER, FOR THE PRESENTATION.
THE FIRST ONE WAS ON, UM, WHERE DID I PUT IT BACK WHEN WE TALKED ABOUT THE COMMISSION? NO.
I'LL JUST SAY WHAT THE QUESTION IS 'CAUSE I CAN'T REMEMBER WHAT THE SLIDE WAS ON.
BUT, UM, WHEN YOU TALKED ABOUT WHO HAD THE AUTHORITY TO SPEAK ON BEHALF OF THE COMMISSION, UM, AND REFERENCING THE CHAIR, DOES THAT EXTEND TO ANY TYPE OF PROMOTIONAL WORK OF THE COMMISSION? SO THE, THE REVOLVING LOAN COMMITTEE, RIGHT? UH, THAT IS A WORK THAT'S THE SUBCOMMITTEE OF THIS COMMISSION BODY IF WE WANNA HELP PROMOTE IT.
IN YOUR ROLE AS A COMMISSIONER, IS THAT ALLOWED OR IS THAT NOT SOMETHING THAT WOULDN'T BE ALLOWED WITHOUT EXPRESS APPROVAL BY EITHER THE CHAIR OR, UM, THE DEPARTMENT? MY SHORT ANSWER IS THAT YOU WOULD NEED APPROVAL, BUT THIS IS WHEN I LOOK TO A TOY TO EXPAND ON THAT.
YEAH, I WAS GONNA SAY, COMMISSIONER, IF YOU, YOU COULD, IF YOU COULD ELABORATE A LITTLE BIT MORE.
SO LIKE HOW, LIKE WHAT DO YOU HAVE IN MIND WITH THE, IN TERMS OF, UM, LIKE KIND OF MARKETING THE RLF? YEAH, SO I, I I THINK IT'S, YOU KNOW, THERE PLENTY OF TIMES WHEN, WHEN THE DEPARTMENT SHARES OUT, YOU KNOW, THIS BUSINESS HAS RECEIVED A REVOLVING LOAN FROM, UH, THE, THE CITY OF THIS AMOUNT AND OR WE HAVE THIS PROGRAM THAT A BUSINESS CAN ACCESS, OR, HEY, WE WOULD LOVE FOR THE PUBLIC TO COME TO AN ECONOMIC DEVELOPMENT COMMISSION MEETING IN OUR ROLES AS COMMISSIONERS.
WE MAY SHARE THAT INFORMATION ON LINKEDIN OR OTHER SOCIAL MEDIA APPS.
ARE WE ALLOWED TO DO THAT WITHOUT ASKING FOR DIRECT PERMISSION OR ARE YOU, IS THE ADVICE, EVEN IN THOSE SCENARIOS, IT REQUIRES AUTHORIZATION? AUTHORIZATION IS, IS THE CLEANER APPROACH.
UM, AND I SAY THAT BECAUSE IT'S, IT'S, IT'S A REALLY FINE LINE IF YOU'RE DOING IT IN YOUR CAPACITY JUST AS AN INDIVIDUAL.
YOU CAN SHARE WHAT YOU WANT ON YOUR OWN SOCIAL MEDIA.
IT'S KIND OF LIKE, WHEN DO YOU PUT ON THAT HAT AS A COMMISSIONER, YOU'RE KIND OF DOING THE SAME THING IN, IN BOTH ROLES.
UM, I THINK IF YOU'RE TRYING TO DO IT IN A, IN AN OFFICIAL CAPACITY OR SAYING, YOU KNOW, ALLUDING TO, HEY, I'M A COMMISSIONER, COME, COME CHECK OUT WHAT WE DO, OR, YOU KNOW, THAT TYPE OF LANGUAGE, I WOULD SAY GO AHEAD AND, AND MAKE SURE THAT YOU GET THAT AUTHORITY FIRST.
UH, BUT IF YOU'RE GOING TO ANY OF YOUR SOCIAL MEDIA, JUST, HEY, THIS IS SOMETHING THAT THE RLF IS DOING, JUST KIND OF LIKE PUTTING IT OUT THERE TO THE PUBLIC, I THINK THAT WOULD BE FINE.
I, I DON'T SEE ANY TYPE OF BROWN ACT VIOLATION THERE.
AND THEN JUST THE SECOND QUESTION, UM, I KNOW, UH, FOR OUR ORGANIZATION, WE, WE DO AN OVERVIEW OF THE BROWN ACT, BUT FOR, AND THIS IS SPEAKING ON BEHALF OF THE OTHER BUSINESS IMPROVEMENT DISTRICTS, SINCE THEIR BOARDS ARE SEEN AS ADVISORY, UM, BODIES TO THE CITY, UM, IS THERE, UH, A PLAN TO DO THIS ETHICS OVERVIEW FOR THE BIDS AS WELL? OR IS THAT SOMETHING THAT THEY SHOULD BE FOLLOWING UP TO, TO ASK? IT'S NOT ON MY IMMEDIATE RADAR, BUT IT'S, THAT'S A GOOD IDEA.
OTHER QUESTIONS OR COMMENTS? OKAY.
COMMISSIONER SMITH, WHOEVER DID THE EMOJIS, DID A GREAT JOB, HEATHER, I REALLY ENJOY THAT.
THANK YOU, HEATHER, FOR ALWAYS GOING THE EXTRA MILE HERE, EVEN WITH THE EMOJIS.
SO SHOULD WE, NO OTHER QUESTIONS OR COMMENTS? UM, SO ARE THERE ANY PUBLIC COMMENTS? SEEING NONE.
AND WHY DON'T WE GO AHEAD AND TAKE A VOTE TO RECEIVE AND FILE THIS PRESENTATION.
WE'RE HAVING ISSUES WITH THE TABLETS.
[00:25:01]
COMMISSIONER SMITH? YES.WHY DON'T WE MOVE ON TO AGENDA ITEM NUMBER TWO.
[3. 26-55233 Recommendation to receive and file a presentation from the Office of the City Attorney regarding the Brown Act. Suggested Action: Approve recommendation. ]
TO RECEIVE ON FILE PRESENTATION FROM THE OFFICE OF THE CITY ATTORNEY REGARDING THE BROWN ACT.OKAY, COULD I HAVE A MOTION AND A SECOND? SO MOVED.
AND THEN A SECOND BY COMMISSIONER PEREZ.
SO, GOOD AFTERNOON COMMISSIONERS.
UM, AGAIN, MY NAME'S A TOY WILSON, A DEPUTY CITY ATTORNEY WITH THE CITY ATTORNEY'S OFFICE.
UH, SO FOR MOST OF YOU, I THINK THIS, I'VE GIVEN THIS BROWN ACT PRESENTATION.
SO FOR MOST OF YOU, IT WILL BE KIND OF JUST YOUR ANNUAL KIND OF REFRESHER.
I THINK THERE MIGHT BE ONE OR TWO COMMISSIONERS WHO ARE NEW THAT THIS IS THEIR FIRST TIME.
SO, UH, WHAT, WHAT OUR OFFICE DOES IS WITH OUR, WITH OUR DIFFERENT BOARDS, WE JUST MAKE SURE THAT, YOU KNOW, NEW COMMISSIONERS KIND OF UNDERSTAND THE, THE BROWN ACT.
IT IS A A LITTLE BIT DIFFERENT.
SO, YOU KNOW, WE DON'T UTILIZE IT ON A DAILY BASIS, KIND OF IN OUR DAILY LIVES, BUT A LOT OF TIMES, SOME, SOMETIMES NEWER COMMISSIONERS, UH, WILL GET A LITTLE BIT INTIMIDATED.
BUT REALLY WHAT THE BROWN ACT IS, IS MORE OF LIKE A SHIELD.
IT'S, IT'S A WAY TO, TO MAKE SURE THAT YOU'RE, YOU GO ABOUT YOUR BUSINESS AS A COMMISSIONER AND ENGAGE IN COMMUNICATIONS WITH OTHER COMMISSIONERS, UH, WITHOUT HAVING TO WORRY ABOUT, YOU KNOW, RUNNING A FOUL OR CAUSING ANY TYPE OF VIOLATIONS.
UM, IN, IN, UH, COMMISSIONER SMITH, YOU'LL SEE, AND, AND IN THIS PRESENTATION, THE EMOJIS DO NOT LOOK LIKE ME.
SO WHAT REALLY THE, THE PUR PURPOSE OF THE BROWN ACT IS, YOU KNOW, YEARS AGO THERE WAS ALWAYS THAT THE, THE ALLEGATION OR THAT KIND OF, THAT THAT CONNOTATION THAT, YOU KNOW, GOVERNMENTS ARE, ARE DOING, YOU KNOW, BUSINESS BEHIND CLOSED DOORS, AND THE MEMBERS OF THE PUBLIC ARE REALLY, YOU KNOW, OUT OF THE LIMELIGHT.
THEY, THEY DON'T KNOW WHAT'S GOING ON.
AND SO REALLY THE THE KEY THEME THROUGHOUT THE PRESENTATION IS JUST TRANSPARENCY, RIGHT? SO WE JUST WANNA MAKE SURE THAT ANY TYPE OF, OF GOVERNING BOARD, UH, IS, IS DOING BUSINESS, THAT THE PUBLIC HAS A RIGHT TO ATTEND, AND THE THE PUBLIC KNOWS WHAT'S GOING ON.
UM, SO HERE, I THINK THE THIRD, THE, YOU KNOW, THIS WAS OBVIOUSLY ENACTED IN RESPONSE TO PUBLIC CONCERNS OVER INFORMAL UNDISCLOSED MEETINGS.
AGAIN, THOSE BEHIND THE CLOSED DOOR, AND THEN THE MEETINGS OF PUBLIC BODIES AND THE WRITINGS OF PUBLIC OFFICIALS AND AGENCIES ARE REQUIRED TO BE OPEN TO PUBLIC SCRUTINY.
UM, WHAT ARE THE, SOME OF THE GENERAL PRINCIPLES OF THE BROWN ACT? ALL MEETINGS HAVE TO BE OPEN AND PUBLIC SO THAT ALL ACTIONS AND DELIBERATIONS MUST BE TAKEN OPENLY.
SO, AGAIN, YOU'LL SEE, AND, AND MOST OF YOU GUYS HAVE BEEN HERE ALREADY FOR A WHILE, BUT YOU KNOW, ALL THE VOTES AND EVERYTHING, WHEN WE CALL FOR THE VOTE, EVERYTHING IS DONE IN, IN, IN, IN OPEN FORUM.
SO, SO PEOPLE, THE PUBLIC CAN SEE EXACTLY HOW, YOU KNOW, WHO'S VOTING FOR WHAT, YOU KNOW, WHAT, UM, A MEETING AS A MAJORITY OF COMMISSION MEMBERS PRESENT AT THE SAME TIME AND PLACE TO DISCUSS ITEMS WITHIN ITS SUBJECT MATTER JURISDICTION.
AND I THINK THAT LAST PART IS KIND OF KEY.
IT'S, UM, YOU, YOU DON'T JUST, IT DOESN'T MATTER IF YOU JUST HAVE A MAJORITY OF COMMISSION MEMBERS, BUT AGAIN, IT'S, IF, IF YOU GUYS ARE THERE TO DISCUSS ITEMS WITHIN THE, THE PURVIEW OF THE ECONOMIC DEVELOPMENT COMMISSION, THAT'S, THAT'S WHERE SORT OF THE BROWN ACT VIOLATIONS WILL START TO BE TRIGGERED.
UM, ALL PERSONS MUST BE PERMITTED TO ATTEND AND PARTICIPATE IN MEETINGS, AND ONLY MATTERS ON THE AGENDA SHALL BE DISCUSSED.
THAT'S ANOTHER BIG ONE AS WELL.
SOMETIMES YOU'LL GET PUBLIC COMMENTS AND SOMETIMES, YOU KNOW, NORMAL HUMAN DISCUSSION CONVERSATIONS WILL START TO VEER OFF TOPIC.
BUT REALLY ONLY MATTERS ON THE AGENDA ARE, ARE REALLY THE ONLY PROPER THINGS TO BE DISCUSSED.
SO IT, IT HELPS TO AVOID THE APPEARANCE OF IMPROPRIETY.
SO, AGAIN, A LOT OF TIMES, EVEN IF YOU HAVE A MAJORITY OF, OF, UH, COMMISSIONERS AND, AND YOU GUYS MIGHT NOT REALLY BE DOING ANY TYPE OF VIOLATION OF A BROWN ACT, YOU MIGHT NOT BE DISCUSSING ANYTHING, BUT IF THE PUBLIC, YOU KNOW, TO THEM IT'S, DOES IT APPEAR TO BE IMPROPRIETY? SO IF THEY'RE, YOU KNOW, IF A MEMBER OF THE PUBLIC JUST SEES, YOU KNOW, SIX OF THE EDO, UH, COMMISSIONERS, YOU KNOW, TALKING, THEY CAN START TO WONDER LIKE, HEY, ARE THEY TALKING ABOUT, YOU KNOW, SOME AGENDA ITEMS OR BUSINESS THAT SHOULD BE YOU REALLY DEALT WITH IN A PUBLIC FORUM? SO THAT'S JUST SOMETHING TO KEEP IN THE BACK OF YOUR MIND.
JUST ALWAYS BE BE MINDFUL OF JUST THE APPEARANCE OF IMPROPRIETY.
UM, WHO'S SUBJECT TO THE BROWN ACT? SO I MEAN, ANY LEGISLATIVE BODIES, OBVIOUSLY, YOU KNOW, COMMISSIONS AND BOARDS, UH, THAT THE CITY HAS.
UM, I THINK THIS, THE, THE LAST ONE IS THE, THE MOST IMPORTANT THING HERE IS NOT A TEMPORARY AD HOC COMMITTEE.
UH, THAT'S ONLY MADE UP SOLELY OF MEMBERS AND CONSTITUTING LESS THAN A QUORUM.
SO A LOT OF TIMES YOU'LL BE ON A COMMISSION, YOU'LL HEAR, YOU KNOW, WE NEED AN AD HOC COMMITTEE FOR SOMETHING.
THAT AD HOC COMMITTEE HAS TO BE MADE UP OF LESS THAN A, A QUORUM.
SO THAT'S, IF THERE'S LESS THAN A QUORUM, THERE'S NEVER GONNA BE ANY ISSUE OR RISK OF THEIR, YOU KNOW, BEING THE MAJORITY OF
[00:30:01]
VOTING MEMBERS OF THE COMMISSION, YOU KNOW, TALKING ABOUT, YOU KNOW, COMMISSION BUSINESS WHEN THEY SHOULDN'T BE.THEY SHOULD BE DOING THAT IN OPEN FORUM.
SO AD HOC COMMITTEES, NO BROWN ACT APPLICATION THERE.
SO WHAT, WHAT TYPES OF COMMUNICATIONS ARE PROHIBITED? SO SERIAL COMMUNICATIONS ARE PROHIBITED, AND THERE'S FOUR DIFFERENT TYPES.
UH, SERIAL COMMUNICATION IS EACH COMMUNICATION INVOLVES LESS THAN A MAJORITY OF MEMBERS, BUT THE TOTAL AMOUNT OF COMMUNICATIONS IN THE SERIES INVOLVES A MAJORITY OF THE BODY OUTSIDE OF A NOTICE PUBLIC MEETING.
SO THESE ARE THE FOUR TYPES OF SERIAL COMMUNICATIONS.
YOU HAVE HUB AND SPOKE, YOU HAVE THE DAISY CHAIN BY REPRESENTATIVE, AND YOU HAVE, UH, ANY TYPE OF COMMUNICATIONS THROUGH EMAILS, TEXTS, OR SOCIAL MEDIA, WHICH OBVIOUSLY IS A BIG ONE IN, IN TODAY'S DIGITAL DIGITAL AGE.
SO HUB AND SPOKE, THAT'S WHERE ONE MEMBER CONTACTS ALL OR A MAJORITY OF THE OTHER MEMBERS THEMSELVES.
A DAISY CHAIN IS WHERE ONE MEMBER CONTACTS ANOTHER MEMBER, AND THEN THAT, UH, THAT MEMBER CONTACTS ANOTHER COMMISSIONER, AND THEN SO ON AND SO FORTH, WHERE EACH EACH, YOU KNOW, EACH INDIVIDUAL COMMISSIONER IS REACHING OUT KIND OF TO TALK ABOUT MAYBE AN AGENDA ITEM.
IT MIGHT BE, HEY, YOU KNOW, WHAT ARE YOUR THOUGHTS ON, ON, YOU KNOW, NEXT WEEK'S ITEM NUMBER THREE.
UH, YOU KNOW, HOW ARE YOU, HOW ARE YOU LEANING ON VOTING? THOSE, THOSE TYPES OF COMMUNICATIONS WHICH NEED TO HAPPEN IN, IN THE PUBLIC FORUM BY REPRESENTATIVE.
I WOULD SAY THIS ONE IS PROBABLY A LITTLE BIT MORE RARE.
UH, BUT THAT'S WHERE A MEMBER'S, REPRESENTATIVE OR AGENT OR INTERMEDIARY, IEA PARTNER OR MESSENGER, A LOT OF YOU HAVE, YOU KNOW, WORK YOUR DAY NINE TO FIVE JOBS.
YOU KNOW, YOU WORK FOR COMPANIES AND ORGANIZATIONS, SO YOU MIGHT HAVE ASSISTANCE OR OTHER COLLEAGUES THERE.
UH, SO, SO A BROWN ACT VIOLATION CAN OCCUR, YOU KNOW, THROUGH, YOU KNOW, INADVERTENTLY, BUT THROUGH ANOTHER PERSON WHO'S NOT YOURSELF.
AND THEN OBVIOUSLY WITH THE EMAILS, TEXTS, AND SOCIAL MEDIA, UM, YOU KNOW, THAT INCLUDES MAKING OR COMMENTING ON SOCIAL MEDIA POSTS AND USING DIGITAL ICONS THAT EXPRESS REACTIONS TO COMMUNICATIONS.
SO IF YOU, YOU KNOW, IF SOMEBODY POSTS, IF A COMMISSIONER POSTS SOMETHING THAT FALLS UNDER THE PURVIEW OF THE EDO AND THEN, UH, YOU KNOW, ANOTHER COMMISSIONER, YOU KNOW, LIKES IT WITH AN EMOJI, ANOTHER ONE SHARES IT, THAT IN ITSELF COULD, UH, INADVERTENTLY BECOME A, A BROWN ACT VIOLATION, EVEN THOUGH IT'S UNINTENTIONAL.
SO HUB AND SPOKE, UH, YOU KNOW, KIND OF, KIND OF JUST WENT OVER THESE PRETTY, PRETTY IN DETAIL.
BUT AGAIN, WE'RE MEMBER CONTACTS ALL OF THEIR MEMBERS ON THEIR BODY TO ENSURE LIKE THEY VOTE YES ON AN ITEM, BECAUSE YOU CAN'T DO THAT.
THAT'S, THAT'S A KIND OF A CLASSIC TEXTBOOK, UH, EXAMPLE OF A BROWN ACT VIOLATION, DAISY CHAIN, AGAIN, YOU KNOW, UH, COMMISSIONER BLUE CONTACTS, COMMISSIONER GREEN, AND THEN COMMISSIONER GREEN, CONTACTS, COMMISSIONER ORANGE, AND SO ON AND SO FORTH.
UM, BY REPRESENTATIVE, KIND OF SELF-EXPLANATORY HOW I JUST EXPLAINED IT.
AND THEN AGAIN HERE, THE ALSO SELF-EXPLANATORY, BUT AGAIN, ONE COMMISSIONER POSTS SOMETHING WHICH IS LIKED BY A COMMISSIONER.
IT'S SHARED BY ANOTHER ONE, IT'S COMMENTED BY ANOTHER COMMISSIONER TH THAT YOU WANT TO REALLY BE MINDFUL, UH, ESPECIALLY IN THIS DAY AND AGE, BECAUSE THIS IS VERY COMMON.
AND AGAIN, THAT COULD LEAD TO A BROWN ACT VIOLATION.
SO WE TALKED ABOUT, YOU KNOW, WHAT YOU CAN'T DO WITH A SERIAL COMMUNICATION.
SO WHAT CAN A COMMISSIONER DO? SO INDIVIDUAL CONTACT BETWEEN A MEMBER AND ANOTHER PERSON OR MEMBER, THAT IS TOTALLY FINE.
SO AGAIN, THE WHOLE POINT OF A BROWN ACT IS YOU CAN'T, YOU KNOW, ONE COMMUNICATION CAN'T HAVE OR REACH THE MAJORITY OF THE BODY, RIGHT? BUT IF, IF YOU HAVE ONE, YOU KNOW, ONE COMMISSIONER'S TALKING TO ANOTHER COMMISSIONER, ONE-ON-ONE, THAT'S THAT, YOU KNOW, AGAIN, THERE'S NO NO RISK OF OF THAT COMMUNICATION REACHING THE MAJORITIES OF THIS.
SO THERE'S NOT GONNA BE A QUORUM THERE.
SO THAT'S NOT A BROWN ACT VIOLATION.
UM, AND ALSO IT ALLOWS MEMBERS TO SPEAK WITH CONSTITUENTS, YOU KNOW, MEMBERS OF THE PUBLIC ADVOCATES CONSULTANTS, AND MORE IMPORTANTLY, WITH OBVIOUSLY CITY STAFF.
SO THAT, YOU KNOW, THE BROWN ACT IS NOT APPLICABLE WITH ANY COMMISSIONER TALKING TO ANY OF THE, THE CITY STAFF MEMBERS.
UM, YOU KNOW, YOU CAN HAVE A MAJORITY OF MEMBERS AT A, YOU KNOW, ANOTHER CONFERENCE OR ANOTHER TYPE OF A MEETING THAT'S OPEN TO THE PUBLIC, UH, LOCAL, PUBLIC MEETING, UH, OPEN MEETING OF ANOTHER BODY, SO ANOTHER COMMISSION, UM, OR ANY TYPE OF SOCIAL OR CEREMONIAL EVENT.
UH, YOU KNOW, COMMISSIONERS CAN BE THERE.
THEY, THEY JUST CANNOT TALK AMONGST THEMSELVES ABOUT ANY TYPE OF ITEMS THAT FALL UNDER THE JURISDICTION OF THIS, THIS, THIS PARTICULAR COMMISSION.
UM, SO SOME AGENDA POSTING REQUIREMENTS ARE REALLY IMPORTANT, UH, THAT THIS IS HOW, YOU KNOW, A LOT OF, UH, BROWN ACT VIOLATIONS DO OCCUR IF THEY'RE, YOU KNOW, REGULAR MEETING AGENDAS HAVE TO BE POSTED TO THE PUBLIC 72 HOURS PRIOR TO THE MEETING.
IF IT'S A SPECIAL MEETING, IT ONLY REQUIRES 24 HOURS, UH, BEFORE, YOU KNOW, POSTING, BEFORE THE MEETING.
SOMETIMES WHAT, WHAT I'VE SEEN, AND I SPECIAL MEETINGS ARE A LITTLE BIT MORE RARE, UH, CITY COUNCIL DOES THEM.
BUT ON THE COMMISSION LEVEL, USUALLY IF IT'S A COMMISSION THAT DOESN'T MEET LIKE THAT REGULARLY, SO SAY IT'S A, IT'S A COMMISSION, IT'S A BODY THAT MEETS
[00:35:01]
QUARTERLY, RIGHT? SO EVERY THREE MONTHS, SAY FOR WHATEVER REASON, TODAY WAS THE QUARTERLY MEETING AND YOU GUYS DIDN'T HAVE QUORUM, YOU KNOW, IS THERE REALLY, DOES IT MAKE SENSE TO WAIT ANOTHER QUARTER BEFORE, YOU KNOW, MORE BUSINESS GETS TAKEN CARE OF? PROBABLY NOT.SO THAT'S WHERE MAYBE A SPECIAL MEETING MIGHT BE A GOOD, A GOOD IDEA, A GOOD, UM, OPPORTUNITY.
SO NOW THE COMMISSION CAN GO AHEAD AND TAKE CARE OF THEIR BUSINESS AND NOT WAIT THAT QUARTERLY ONLY BECAUSE THERE, YOU KNOW, FOR THAT EX EXAMPLE, THERE WAS NOT A, A SUFFICIENT QUORUM.
THE AGENDAS REALLY, I MEAN, THEY KIND OF ARE SELF-EXPLANATORY, REALLY.
IT JUST NEEDS TO BE A BRIEF GENERAL DESCRIPTION OF EACH ITEM.
UH, OBVIOUSLY, MEMBERS OF THE PUBLIC HAVE TO KNOW THE DATE, TIME, AND LOCATION OF THE MEETING.
UM, OBVIOUSLY IF IT'S A COMMISSION, IF IT'S A COMM COMMISSIONER WHO'S APPEARING REMOTELY, WHO'S NOT PHYSICALLY HERE, THEY MIGHT BE, YOU KNOW, TRAVELING FOR WORK OR WHATEVER, YOU KNOW, THAT LOCATION DOES NEED TO BE, UH, UH, ALSO INCLUDED ON THE AGENDA.
UM, YOU KNOW, THE, THE PUBLIC HAS TO BE INFORMED OF THE SCOPE OF THE BODY'S INTENDED PLANS.
SO EACH AGENDA ITEM, A MEMBER OF THE PUBLIC HAS TO KNOW, OKAY, WHAT IS AGENDA ITEM NUMBER TWO? IS THAT SOMETHING THAT I WANT TO, AS A MEMBER OF THE PUBLIC WANT TO COME DOWN AND MAKE PUBLIC COMMENT OR, OR PARTICIPATE IN? PERSONALLY, THAT'S REALLY ALL THAT'S REQUIRED.
UM, AND AGAIN, IT HAS TO BE POSTED IN A LOCATION FREELY ACCESSIBLE TO THE PUBLIC.
WHERE CAN THE MEETINGS BE HELD? SO IT DOES HAVE TO BE WITHIN THE BOUNDARIES OF THE CITY, UNLESS A SPECIFIC EXEMPTION APPLIES.
AND I ACTUALLY HAVE NEVER SEEN THAT.
I, I KNOW, I THINK IT MIGHT'VE BEEN THIS ONE, OR MAYBE IT'S A, A SIMILAR BOARD, BUT SAY THERE WAS, UH, SAY LIKE CHAMBERS, RIGHT? CIVIC CHAMBERS WERE, WAS BOOKED.
AND SO THE, THE COMMISSION MEETING COULDN'T HAPPEN HERE IN THIS LOCATION.
MAYBE ONE OF YOUR, YOUR OWN COMPANIES THAT YOU, YOU WORK WITH, A NONPROFIT HAS A BOARDROOM, YOU KNOW, IN, IN LAKEWOOD OR SOME, SOMETHING LIKE THAT, THAT'S COME UP WHERE THEY'VE, THEY'VE CONTACTED OUR OFFICE, HEY, CAN, IS IT OKAY, WE, IF WE HAVE THIS MEETING HERE, WE HAVE A, YOU KNOW, SPACE, WE CAN DO IT HERE.
BUT IT'S UNFORTUNATELY OUTSIDE THE CITY'S JURISDICTIONS.
SO UNFORTUNATELY, THAT WOULD BE A, A NO.
UH, SO IT DOES HAVE TO BE HERE, AND IT DOES HAVE TO BE AT A AREA THAT'S ACCESSIBLE WITH THE, UH, YOU KNOW, PURSUANT TO ALL THE A DA REGULATIONS.
WHAT DO THE RIGHTS OF THE PUBLIC HAVE? YOU KNOW, A MEMBER OF THE PUBLIC, THEY DO HAVE THE RIGHT TO COMMENT ON ANY MATTER ON THE AGENDA.
UM, AND WITHIN THE BODY SUBJECT MATTER JURISDICTION, IF YOU NOTICE FOR THE NEWER COMMISSIONERS, UH, WHEN YOU LOOK AT THE AGENDA, PUBLIC COMMENT WILL BE ASKED FOR EACH AGENDA ITEM.
BUT AT THE END, THERE'S ALSO A, A TIME AND OPPORTUNITY FOR A MEMBER TO DO A PUBLIC COMMENT ON NON-AGENT ITEMS. BUT THOSE STILL, THOSE PUBLIC COMMENTS STILL HAVE TO BE WITHIN THE, THE SUB, THE BODY'S SUBJECT MATTER JURISDICTION.
SO THIS, THIS COMMISSION CANNOT ENTERTAIN ANY TYPE OF PUBLIC COMMENT THAT'S, YOU KNOW, ABOUT CLIMATE, YOU KNOW, OR, OR, OR RESILIENCE, YOU KNOW, SUSTAINABILITY ISSUES.
IT REALLY HAS TO, YOU KNOW, BE EVOLVING, YOU KNOW, ECONOMIC DEVELOPMENT, THINGS OF THAT NATURE.
UH, MEMBERS OF THE PUBLIC, THEY DO HAVE THE RIGHT TO RECORD.
UH, I KNOW SOMETIMES IN THIS DAY AND AGE, WE GET A LITTLE BIT IFFY ON IF, YOU KNOW, SOMEBODY'S RECORDING YOU IN, IN PUBLIC, BUT THEY DO HAVE THE RIGHT TO DO THAT.
IN, IN THIS, THIS MEETING, UH, A MEMBER OF THE PUBLIC HAS THE RIGHT TO REVIEW THE AGENDAS OR OTHER WRITINGS DISTRIBUTED BY THE, BY THE BODY.
UM, AND ALSO THE, THE IMPORTANT THING IS THEY HAVE THE RIGHT TO WITNESS VOTES.
UM, SO, SO NO SECRET BALLOTS ALLOWED.
AGAIN, JUST THAT, THAT TRANSPARENCY THEME.
SO WHAT HAPPENS IF THERE IS A VIOLATION OR A BROWN ACT? UM, I MEAN, TYPICALLY YOU, YOU KNOW, ALL THE WORK OR WHATEVER THE, THE BODY WAS DONE, YOU KNOW, THE, WHATEVER THE VOTE WAS WOULD HAVE TO BE UNDONE.
AND, AND THE BODY, THE COMMISSIONERS WOULD HAVE TO GO BACK AND REDO IT.
IT CAN LEAD TO A CIVIL ACTION.
UM, YOU KNOW, A A MEMBER OF THE PUBLIC COULD GO TO COURT AND FILE AND SAY, HEY, YOU KNOW, THIS, THIS, UH, THIS ECONOMIC DEVELOPMENT COMMISSION COMMITTED A BROWN ACT VIOLATION, AND I, I WANT TO GO AHEAD.
AND THEY'RE, THE BIG THING TO THE CITY IS OBVIOUSLY THE ATTORNEY'S FEES, RIGHT? IF THAT HAPPENS AND THEY'RE SUCCESSFUL, THEN OBVIOUSLY THE CITY WOULD BE ON THE, THE HOOK FOR HAVING TO PAY THAT PERSON'S ATTORNEY'S FEES, WHICH CAN BE SUBSTANTIAL.
AGAIN, THAT'S REALLY A RARITY.
UH, BUT IT CAN'T BE PUNISHABLE AS A MISDEMEANOR IF THERE, THERE WAS AN INTENT TO DEPRIVE THE PUBLIC OF INFORMATION.
SO REALLY, YOU'RE KIND OF THINKING OF LIKE A COMMISSION WIDE CONSPIRACY.
YOU KNOW, THERE'S A INTENTIONAL AND INTENTIONAL INTENT TO DEPRIVE, YOU KNOW, MEMBERS OF THE PUBLIC OR TO DECEIVE THEM, THAT COULD BE A MISDEMEANOR CHARGE.
SO THAT'S REALLY SORT OF WHAT, WHAT THE BROWN ACT IS IN A NUTSHELL.
I, I LIKE TO ALWAYS FINISH WITH A COUPLE OF SLIDES ON ROBERT'S RULES OF ORDER, RIGHT? BECAUSE THE, YOU KNOW, THESE, THESE MEETINGS ARE RAN AT KIND OF A DIFFERENT WAY, UH, WITH MOTIONS AND, YOU KNOW, SECOND AND FRIENDLY MOTIONS.
AND SO, AGAIN, FOR NEWER COMMISSIONERS, THAT COULD BE A LITTLE BIT, UM, CONFUSING, UH, AND COMPLEX.
UNTIL, UNTIL YOU, ONCE YOU START TO, TO DO IT AND YOU START SEEING A FEW MEETINGS, THEN IT, IT STARTS BECOMING SECOND NATURE.
BUT THE CHAIR IS THE, THE MOST IMPORTANT PERSON, ONLY BECAUSE THEY'RE THE ONE WHO, WHO WHO RUNS THE MEETING.
SO THEY HAVE TO MAKE SURE ALL THE, YOU KNOW, THE, THE BROWN ACT IS BEING COMPLIED, THAT, YOU KNOW, ROBERT'S RULES ARE BEING, BEING FOLLOWED.
UM, ALL DECISIONS HAVE TO BE MADE BY A MAJORITY VOTE.
UH, IF THERE'S NO MAJORITY VOTE, THEN THE, THE MOTION FAILS.
[00:40:01]
THE, THE COMMISSION SHOULD NOT CONDUCT ITS BUSINESS.OH, IT SHOULD CONDUCT ITS BUSINESS ORDERLY AND EFFICIENTLY.
AND THEN, UM, REALLY THE RULES, AGAIN, ARE, SHOULD BE, UH, TO HELP AND NOT HINDER.
SO ONE OF THE KEY THINGS I ALWAYS E EMPHASIZE WITH THE, THE CHAIR'S ROLE, AND IF THE CHAIR'S NOT THERE, THE VICE CHAIR IS JUST MAKING SURE THAT THE, YOU KNOW, THE BODY'S GETTING THROUGH THE AGENDA IN A TIMELY, TIMELY MANNER.
YOU KNOW, NOBODY WANTS TO BE HERE FOR FOUR OR FIVE HOURS AND, AND, YOU KNOW, ONLY TWO OR THREE ITEMS HAVE BEEN, BEEN DEALT WITH AT THAT TIME.
UM, AGAIN, JUST EXPANDING A LITTLE BIT MORE ON THE ROLE OF THE CHAIR.
UH, AND, YOU KNOW, THE CHAIR'S DUTIES ARE TO INTRODUCE BUSINESS IN PROPER ORDER.
UM, THE, THE CHAIR DOES HAVE DISCRETION TO TAKE ITEMS OUT OF, OUT OF ORDER THAT, THAT'S TOTALLY UP TO THEIR DISCRETION.
UH, BUT AGAIN, GETTING THROUGH THE AGENDA ITEMS IN A TIMELY MATTER THAT'S REALLY IMPORTANT.
UH, DETERMINING IF A MOTION IS PROPER AND IN ORDER, UH, KEEPING THE DISCUSSION FOCUSED ON THE AGENDA ITEM.
AGAIN, THAT ONE I HIGHLIGHT BECAUSE IT'S NATURAL FOR, FOR CONVERSATION TO BE ON AGENDA ITEM.
AND THEN NEXT THING YOU KNOW, YOU START TO VEER OFF TOPIC AND YOU'RE, YOU ULTIMATELY START HAVING A, A REALLY IN-DEPTH CONVERSATION ABOUT SOMETHING THAT'S NOT ACTUALLY THE AGENDA ITEM.
SO THERE'S NO MOTION THAT'S PENDING ON THAT, THAT PARTICULAR ITEM.
SO THOSE ARE THINGS THAT THE CHAIR WANTS TO KIND OF MINIMIZE.
UM, AND ALSO THE CHAIR WANTS TO ENFORCE TIME LIMITS FAIRLY AND NEUTRALLY.
SO MAKING SURE THAT, YOU KNOW, MEMBERS OF THE PUBLIC AS WELL AS OTHER CO COCOMS HAVE EQUAL OPPORTUNITY TO BE HEARD.
UH, DURING ACTUAL COMMISSION DISCUSSIONS, THE, THE CHAIR WANTS TO ENSURE THAT CLEAR DECISIONS ARE MADE.
UH, YOU KNOW, RECOGNIZE COMMISSIONERS WHO WISH TO SPEAK, UM, JUST, YOU KNOW, ACTIVELY LISTENING JUST TO MAKE SURE THAT, AGAIN, EVERYONE IS HEARD.
WHERE SOME COMMISSIONERS ARE SAYING, HEY, I'D NEVER HAD A CHANCE TO BE HEARD OR TO SAY, MY 2 CENTS MOTIONS.
WE'VE BEEN TALKING ABOUT MOTIONS.
SO AGAIN, ONCE, ONCE A COMMISSIONER HAS BEEN RECOGNIZED BY THE CHAIR, THEY CAN MAKE A MOTION.
UH, THE MOTION HAS TO BE SECONDED BY ANOTHER MEMBER.
IT CAN'T, IT CAN'T BE SECONDED BY THE SAME, THE, THE MAKER OF THE MOTION, UH, THE MOTION IS THEN DEBATED OR VOTED UPON.
AND SOME TYPICAL MOTIONS ARE THE MAIN MOTION.
A FRIENDLY AMENDMENT WOULD BE, SAY THE MOTION, THE MAKER OF THE MOTION MAKES A MOTION.
AND, AND ANOTHER COMMISSIONER SAYS, HEY, I LIKE THIS MOTION.
IT MAKES SENSE, BUT I, I, I WANT TO TWEAK IT A LITTLE BIT.
I HAVE SOME, SOME HELPFUL SUGGESTIONS, RIGHT? WHAT ABOUT, YOU KNOW, IF WE ADD, ADD IN X, Y, AND Z, OR WE, WE, WE TINKER, UH, WITH THE MOTION A LITTLE BIT.
IF THAT HAPPENS, ALL THAT THAT NEEDS TO HAPPEN TO BE PROPER IS FOR THE MAKER OF THE MOTION.
THE ORIGINAL MAKER OF THE MOTION HAS TO ACCEPT THAT FRIENDLY.
ONCE THEY ACCEPT THAT FRIENDLY, THEN THAT'S THE NEW MOTION.
UM, AND THEN YOU HAVE WHAT, WHAT'S CALLED A SUBSTITUTE MOTION.
AND A SUBSTITUTE MOTION HAS TO BE SUBSTANTIVELY DIFFERENT.
SO IT IT REALLY BY, BY BY DEFINITION, LIKE THE, THE ACTUAL WORDAGE AND THE VERBIAGE AND THE, THE MEANING OF THE MOTION HAS TO BE SOMETHING DIFFERENT THAN THE ORIGINAL MOTION.
IF THAT HAPPENS, THE COMMISSIONER, THE COMMISSION WOULD VOTE ON THE SUBSTITUTE MOTION.
IF THAT PASSES, THEN THAT SUBSTITUTE MOTION IS WHAT WAS ACTUALLY TAKEN.
THAT'S THE OFFICIAL ACTION OF THE BODY.
NOW, IF IT FAILS, THEN THAT, THAT SUBSTITUTE MOTION KIND OF PEELS AWAY, IT FALLS AWAY.
AND THEN AGAIN, THE UNDERLYING ORIGINAL MOTION IS THE NEXT MOTION THAT THE COMMISSION WOULD BE VOTING ON.
AND, AND IF, AGAIN, FOR NEWER COMMISSIONERS, IF IT GETS CONFUSING, DEFINITELY, YOU KNOW, YOUR CITY ATTORNEY'S DEFINITELY HERE TO ANSWER ANY QUESTIONS, UH, TO, TO HELP JUST MAKE SURE THAT EVERYTHING'S DONE IN COMPLIANCE.
UM, AGAIN, THE CHAIR, YOU'LL HEAR THE CHAIR CALL FOR THE VOTE.
UM, AGAIN, IF THE VOTE IS A TIE, THE MOTION FAILS.
AND THAT'S, THAT'S, THAT'S IT FOR THE PRESENTATION.
AGAIN, IT'S REALLY JUST A REFRESHER FOR MOST OF YOU COMMISSIONERS.
AND, UH, FOR THOSE OF YOU WHO THIS WAS THE FIRST TIME, YOU KNOW, DEFINITELY IF YOU WANT, WE CAN DEFINITELY PROVIDE YOU WITH A SLIDE DECK SO YOU DON'T HAVE TO WORRY ABOUT, YOU KNOW, MEMORIZING ANYTHING LIKE THAT.
BUT DEFINITELY HERE, UH, MORE THAN HAPPY COMMISSIONERS IF TO, TO ANSWER ANY OF YOUR QUESTIONS, ANY, ANY COMMENTS OR ANYTHING.
LATOYA, HOW ABOUT COMMISSIONERS? QUESTIONS? COMMENTS? COMMISSIONER MATOYER? YEAH, I HAVE TWO QUESTIONS.
SO THE FIRST ONE GOES BACK TO THE PENALTY PORTION.
SO IF SOMEONE WERE TO NOT COMPLY WITH THE BROWN ACT, IS THE PENALTY APPLIED TO THE INDIVIDUAL COMMISSIONER, OR IS IT APPLIED TO THE ORGANIZATION THAT THEY'RE, SO WOULD IT APPLY TO THE DEPARTMENT OR TO THE CITY, OR DOES IT APPLY TO THE COMMISSION? AND IT SOUNDS LIKE, OR TO THE COMMISSIONER, IT SOUNDS LIKE IT APPLIES TO THE COMMISSIONER, IF I UNDERSTOOD THAT CORRECTLY.
SO IT APPLIES TO THE COMMISSIONER, BUT IT, IT CAN HAVE THE IMPACT OF, YOU KNOW, COMMISSION WIDE IF, IF THE, THE ACTION OF THE ITEM THAT THE COMMISSION VOTED ON WOULD HAVE TO BE UNDONE.
SO, SO IT, IT, IT DOES IMPACT THE, THE COMMISSION, SORT OF LIKE A, LIKE A, A, YOU KNOW, COMMISSION WIDE.
UH, BUT, BUT IT'S NOT THE, IT WOULD BE THE ACTUAL COMMISSIONER WHO, WHO COMMITTED THE VIOLATION THAT THEY WOULD BE THE RESPONSIBLE, UH, PARTY.
UM, AND THEN THE SECOND ONE IS THE SAME QUESTION I ASKED TO HEATHER REGARDING, UM, YOU KNOW, WHETHER OR NOT THERE ARE PLANS BECAUSE THE BIDS, THEIR BOARDS ARE ADVISORY TO THE CITY COUNCIL, IF THERE'S A PLAN TO ALSO DO SUCH A PRESENTATION TO
[00:45:01]
THEM AS WELL.'CAUSE I THINK THAT WOULD BE HELPFUL FOR THEM FOR THE ROUND ACT.
UH, COMMISSIONER AND, AND I DON'T KNOW IF THERE'S ANY PLANS IN THE WORKS, BUT I, I KNOW THAT, YOU KNOW, I GAVE, I GAVE, UH, THIS SAME PRESENTATION.
I, FOR, I FORGET WHERE EXACTLY OR WHEN IT WAS, IT WAS A LITTLE WHILE AGO, BUT ABSOLUTELY ANY ADVISORY BOARD TO THE CITY, WE'RE, WE'RE MORE THAN WILLING.
UM, IF YOU, IF YOU GUYS KNOW OF ANYTHING THAT, THAT ADVISORY BOARD THAT YOU THINK THIS PRESENTATION WOULD BE HELPFUL, JUST YEAH, REACH OUT TO JULIAN, SHOOT AND THEN, UH, GET MY OFFICE IN, UH, INVOLVED.
AND WHAT WE WOULD DO IS JUST SET UP A TIME THAT'S CONVENIENT FOR EVERYBODY AND, AND I'M, I'M MORE THAN HAPPY TO DO THAT.
OKAY, VICE CHAIR THOMAS, THANKS SO MUCH FOR THE REPORT.
AND THE UPDATES, UM, PAGE 17 OF YOUR DECK UNDER, UM, RIGHTS PUBLIC TO REVIEW AGENDAS AND OTHER WRITINGS DISTRIBUTED TO A MAJORITY OF THE BODY, THE, UH, OTHER WRITINGS PART.
UM, WOULD THAT, WOULD THIS BE CONSIDERED, THESE, THESE DOCUMENTS BE CONSIDERED OTHER WRITINGS THAT SHOULD BE PLACED INTO OUR AGENDA IN ADVANCE OF THE ITEM BEING DISCUSSED BY THE COMMISSIONER? YES, THAT'S CORRECT.
UH, COMMISSIONER AND, AND, AND SO REALLY WITH OTHER WRITINGS, SOMETIMES IT MIGHT BE A SPECIFIC AGENDA ITEM WHERE MAYBE, UH, ONE OF THE COMMISSIONERS HAS, HAS, YOU KNOW, SOME RESEARCH OR SOMETHING THAT THEY WANT TO ADD TO A PRESENTATION OR SOMETHING LIKE THAT.
OR MAYBE IT'S, UH, MAYBE IT'S, IT'S, IT'S AN OFFICIAL, UH, UM, ACTION THAT, YOU KNOW, MAYBE THE COMMISSIONER WANTS TO VOTE AND BRING SOMETHING UP TO, TO CITY COUNCIL TO TAKE ACTION ON A, SO, SO MAYBE THE COMMISSIONER WILL DRAFT THE COMMISSION, WILL DRAFT A LETTER OF SOME SORT.
SO THOSE ARE THE OTHER TYPE OF WRITINGS THAT, THAT HAVE TO BE DISTRIBUTED WITH THE MAJORITY OF THE BODY.
SO, SO AGAIN, YOU'RE, YOU'RE, TO ANSWER YOUR QUESTION, IF SAY, UH, FOR AN EXAMPLE, NEXT, NEXT MONTH'S MEETING, UM, THERE, THERE'S SOMETHING THAT THE COMMISSION WANTS TO SHARE WITH CITY COUNCIL OR, OR BRING SOMETHING TO OUR, THEIR ATTENTION, YOU WOULD WANNA MAKE SURE THAT TO GET EVERYTHING, UH, TURNED INTO THE CLERK'S OFFICE.
SO WHEN THE CLERK'S OFFICE POSTS THE AGENDA, ALL THE ATTACHMENTS ARE, ARE GONNA BE THERE AND AVAILABLE TO THE PUBLIC IN, IN THAT SUFFICIENT TIME PERIOD.
ON, UH, PAGE 22, UM, REGARDING FRIENDLY AMENDMENTS AND SUBSTITUTE MOTIONS THROUGH THE YEARS OF BEING CHAIR AND OTHER BOARDS AND COMMISSIONS HERE IN TOWN, ONE THING THAT I'VE ALWAYS BEEN CONCERNED WITH IS THE SLIPPERY SLOPE OF THE ORIGINAL MOTION.
MOST PEOPLE READ APPROVE RECOMMENDATION OR, UH, UH, RECEIVE AND FILE PRESENTATION OR WHATEVER IN THE CONVERSATION ABOUT FRIENDLY EMOTIONS.
UM, WE HAVE TO BE VERY CAREFUL NOT TO ALLOW THAT TO SLIDE OFF THE TABLE AS IT WERE AND STAY ON POINT ABOUT THE ORIGINAL MOTION AND THE MOTION OF, OF THAT OBJECTIVE BECAUSE THE PUBLIC WOULD MAYBE BE MORE INTERESTED IN THAT FRIENDLY MOTION DISCUSSION THAN THE CLEAR APPROVED RECOMMENDATION OR WHAT HAVE YOU RECEIVED AB ABSOLUTELY, COMMISSIONER, I, I COMPLETELY AGREE.
AND I THINK A, A CLASSIC EXAMPLE WOULD BE LIKE YOU JUST SAID, RIGHT? A AGENDA ITEM IS A RECEIVE AND FILE.
SO REALLY ON THAT, THAT'S ALREADY BEEN POSTED TO THE PUBLIC.
SO, SO EVEN EVEN THERE A FRIENDLY, A, A FRIENDLY AMENDMENT TO DO SOMETHING DIFFERENT, LIKE TO TAKE ACTION OTHER THAN RECEIVING AND FILING, THAT WOULD NOT BE PERMISSIBLE.
SO, SO IF THAT, IF THAT IN A SITUATION LIKE THIS, 'CAUSE IT, IT POPS UP A LOT.
SO WHAT HAPPENS, WELL, UNFORTUNATELY, THE COMMISSION WOULD HAVE TO, I MEAN, THEY COULD HAVE DO DISCUSSION DURING, DURING THAT ITEM, THAT'S FINE, BUT ONLY BECAUSE THAT'S A RECEIVE AND FILE.
ALL THE COMMISSION WOULD BE ABLE TO DO THAT SPECIFIC DAY IS JUST RECEIVE THE PRESENTATION, BUT THEN THEY CAN ACTUALLY PUT SOMETHING ON THE NEXT MONTH'S CALENDAR TO TAKE ACTION.
SO NOW WE WANNA FOLLOW UP OUR DISCUSSION, AND NOW WE WANNA MAKE SOME TYPE OF, YOU KNOW, ADVISORY RECOMMENDATION TO CITY COUNCIL FOR AN EXAMPLE THERE.
THE NEXT MEETING ACTION COULD BE TAKEN.
BUT IF IT'S, IF IT IS A LOT OF THINGS THAT ARE RECEIVING FILES, IT JUST IS TO RECEIVE AND FILE THAT PRESENTATION ON THAT SPECIFIC DATE.
COMMISSIONER HAWAS, THANK YOU FOR YOUR PRESENTATION.
UM, IT WAS REALLY GREAT TO SEE YOU JUST DRILL DOWN ON THE ROBERTS RULES.
I ALWAYS TELL PEOPLE IT'S, IT'S AN ART FORM, SO THANK YOU FOR THAT
UM, AS FAR AS COMMISSIONERS IN OUR PERSONAL CAPACITY, ARE WE ALLOWED TO, WITH THE, WITH THE RECENT ELECTION, SAY PRIOR TO THE ELECTION, SAYING THAT WE SUPPORT OR ENDORSE THE MAYOR'S REELECTION OR THE, OR A CERTAIN COUNCIL MEMBER, ARE WE OKAY WITH DOING THAT ON OUR PERSONAL TIME OR, UM, ARE WE, ARE WE PRECLUDED TO DO SO? AND ADDITION? SECOND QUESTION IS, ARE WE ALLOWED AS COMMISSIONERS TO MAKE, UH, POLITICAL CONTRIBUTIONS TO, TO THE BODY AS WELL? NO, COMMISSIONER, THAT IS A VERY GOOD QUESTION.
UM, YOU, YOU CAN DO A, AGAIN, YOU CAN DO ANYTHING IN YOUR OWN PERSONAL CAPACITY.
YOU CAN GO, YOU KNOW, SUPPORT, YOU KNOW, THE MAYOR, WHATEVER, YOU KNOW, COUNCIL MEMBERS.
YOU JUST WANNA BE MINDFUL OF NOT REPRESENTING THAT, THAT THIS IS LIKE AN OFFICIAL, LIKE COMMISSION ENDORSEMENT.
SO LIKE, YOU WOULDN'T, YOU, YOU WOULD JUST, OFF THE TOP OF MY HEAD, YOU WOULD WANT TO BE MINDFUL, LIKE POSTING ANYTHING, SAYING LIKE, YOU KNOW, AS, AS, UM, YOU
[00:50:01]
KNOW, COMMISSIONER, UH, OF, OF THE, OF THE EDO, UM, YOU KNOW, I'M, I'M, I'M, I'M FORMALLY OR OFFICIALLY LIKE, YOU KNOW, ENDORSING, YOU KNOW, CD FIVE FOR JUST FOR AN EXAMPLE.UM, YOU, YOU WOULD WANNA MAKE SURE TO USE LANGUAGE THAT THAT'S IDENTIFYING YOU AS AN INDIVIDUAL CAPACITY.
AND I'VE HAD COMMISSIONERS ACTUALLY DO THAT JUST BECAUSE IT'S SAFER.
IT'S LIKE THEY, THEY'LL SAY LIKE, NO.
AND JUST AS A RESIDENT OF LONG BEACH OF, YOU KNOW, I'M A RESIDENT OF, YOU KNOW, COUNCIL DISTRICT THREE, YOU KNOW, THIS IS, THIS IS MY, MY TAKE ON SOMETHING.
SO THAT, THAT'S THE ANSWER TO YOUR FIRST QUESTION.
AND THE, THE SECOND ONE, CAN YOU REPEAT THE SECOND ONE? CON POLITICAL CONTRIBUTIONS ARE, ARE COMMISSIONERS ALLOWED TO WRITE POLITICAL CONTRIBUTIONS TO ELECTED OFFICIALS IN THE CITY OF LONG BEACH? YES.
JUST IN, IN, IN YOUR INDIVIDUAL CAPACITY MM-HMM
SO, SO YOU WOULDN'T DO THAT AS LIKE, HEY, AS COMMISSIONER, YOU KNOW, SUCH AND SUCH, I'M GONNA, I'M GONNA GO AHEAD AND WRITE THIS CHECKOUT THAT, THAT HAS, THAT HAS TO BE DISTINGUISHED.
SO THIS IS, IT'S MADE IN MY PERSONAL CAPACITY AND I DON'T MENTION, MAKE REFERENCE TO THE COMMISSION.
UM, YOU MENTIONED FOLKS CAN, UH, VIDEO OR TAPE US WHILE WE'RE, YOU KNOW, THE DAIS, CONSIDERING CALIFORNIA IS A TWO PARTY STATE.
ONCE I LEAVE THE DAIS, OR ONCE THE COMMISSIONER LEAVES THE DAIS, ARE THEY, YOU KNOW, ARE FOLKS, UM, PRECLUDED FROM CONTINUOUS FULFILLMENTS, YOU KNOW, GOES TO OUR VEHICLES, YOU KNOW, FOCUS ON OUR LICENSE? YOU KNOW, I'M JUST CURIOUS HOW THAT WORKS WITH CALIFORNIA'S, UM, LAWS.
NO, I LIKE YOU, YOU GIVING ME A LITTLE LEGAL ANALYSIS.
IT COMES DOWN TO THE REASONABLE EXPECTATION OF PRIVACY, THAT THAT'S WHERE THE DUAL CONSENT COMES IN.
UM, SO IF YOU WERE, IF ANY COMMISSIONERS WERE TO LEAVE HERE AND YOU'RE STILL IN A, IN AN OPEN PLACE OF PUBLIC, UH, THAT THAT PERSON WOULD STILL HAVE THAT, RIGHT? BECAUSE YOU REALLY DON'T HAVE A REASONABLE EXPECT EXPECTATION OF PRIVACY.
THE DUAL CONSENT REALLY TAKES PLACE WHERE, WHERE YOU'RE TALKING ABOUT THOSE GRAY AREAS WHERE MAYBE IT'S A PRIVATE OFFICE OR SOMETHING WHERE THAT THERE IS A, A MORE REASONABLE EXPECTATION OF PRIVACY THAT, THAT I'M NOT IN THE OAKLAND, I'M NOT OUT IN THE PUBLIC.
YOU WOULD NEED THAT, THAT DUAL CONSENT IN ORDER FOR THAT TO BE, UH, UH, YOU KNOW, LEGAL.
UH, BUT IF YOU, BUT AGAIN, IF YOU WERE TO LEAVE IN, JUST WALK INTO YOUR CAR OUT IN THE COURTYARD, ANY ANYWHERE THAT'S REALLY PUBLIC AND OPEN, UH, ANY MEMBER OF THE PUBLIC WOULD STILL BE, HAVE A LEGAL RIGHT TO STILL FILM YOU.
ONE OF 'EM IS, IS ON PAGE FIVE, YOU TALK ABOUT THE AD HOC COMMITTEES.
WE HAVE COMMITTEES, UM, THAT WE CHAMPION PARTICULAR AREAS FROM THE ECONOMIC DEVELOPMENT BLUEPRINT.
AND SO I JUST WANTED TO MAKE SURE WE UNDERSTAND.
THIS IS, SO IT SAYS LESS THAN, THAN A QUORUM OF THE TOTAL COMMISSION.
SO IF OUR COMMITTEES HAVE LIKE UNDER SIX MEMBERS ON THEM, THEN THAT WORKS.
YOU JUST, THAT THAT'S CORRECT.
WHAT WE DO FROM THE CITY ATTORNEY'S OFFICE, WE DO ADVISE, 'CAUSE SOME, AND, AND I'M NOT SAYING THIS COMMISSION, BUT SOME COMMISSION, SOME COMMISSIONS, THEY REALLY LIKE AD HOCS.
AND SO THEY REALLY, YOU KNOW, COMMISSIONERS WILL BE ON LIKE FOUR OR FIVE DIFFERENT LITTLE AD HOC COMMITTEES.
AND THAT BECOMES PROBLEMATIC BECAUSE IT'S, IT'S ALL LIKE, YOU'RE ALMOST GUARANTEED TO RUN INTO A BROWN ACT VIOLATION.
TO TALK ABOUT THINGS AND, AND, AND KEEP THEM REALLY SEPARATE.
WE USUALLY RECOMMEND A COMMISSIONER PROBABLY DOESN'T SERVE A MORE THAN ONE OR TWO AD HOC COMMITTEES.
UM, THERE ARE SOME COMMISSIONS THAT ACTUALLY HAVE FORMAL BYLAWS WHERE THEY ACTUALLY NEED OUR, THE CITY ATTORNEY'S APPROVAL IF THEY, IF THAT COMMISSIONER WANTS TO SERVE ON MORE THAN ONE.
SO THE RECOMMENDATION IS TO REALLY KEEP IT TO ONE OR TWO, UM, TO, TO ANSWER YOUR QUESTION.
BUT AGAIN, YES, THE, THE WHOLE PURPOSE OF BEING AN AD HOC COMMITTEE, IT HAS TO BE LESS MADE UP OF LESS THAN A QUORUM.
UM, AND THIS IS JUST A CURIOSITY QUESTION ON, ON PAGE 17 WHERE IT SAYS, PUBLIC COMMENTS HAVE TO BE MATTERS THAT ARE ON THE AGENDA OR THE SUBJECT MATTER OF THE PARTICULAR COMMISSION.
SO HAVE YOU RUN INTO SITUATIONS WHERE THE PUBLIC COMES IN AND THEY BRING IN SOMETHING COMPLETELY DIFFERENT THAN WHAT IT IS FOR THE COMMISSION? YES.
AND DO YOU STOP THAT INDIVIDUAL OR DOES THE CHAIR DO THAT? IT IT COULD BE, IT COULD BE THREE IF THE CHAIR COULD DO IT.
IF, IF THE CHAIR RECOGNIZES THAT THIS IS GOING, IS STARTING TO REALLY VEER OFF TOPIC, UM, THE CITY ATTORNEY COULD DEFINITELY STEP IN OR THE, OR THE CLERK'S OFFICE OKAY.
SO IT'S, UM, IT, THERE'S NO ONE PERSON WHO'S DESIGNATED TO DO THAT.
UH, BUT ACTUALLY IT, IT DOES IT, YOU KNOW, PUBLIC COMMENT.
AND SOMETIMES I'VE, I'VE, I'VE HEARD, I'VE, I'VE WITNESSED SOME PERSONAL COMMENTS THAT HAVE BEEN INTERESTING WHERE YOU'RE KIND OF LIKE, I DON'T SEE THE EXACT POINT THEY'RE DOING, BUT THEN THEY KIND OF TIE IT INTO TO SOMETHING WHERE LIKE, HEY, THIS, THIS DOES FALL UNDER THE PURVIEW.
OTHERS, YOU'RE KIND OF LIKE, NAH, AFTER A WHILE, LIKE, THIS DOESN'T SEEM LIKE ANYTHING THAT WE'RE, WE'RE DEALING WITH RIGHT NOW.
AND THEN AS THE CHAIR, YOU WOULD JUST GIVE THAT THE PERSON JUST A FRIENDLY KIND OF REMINDER LIKE, HEY, YOU KNOW, PUBLIC COMMENT HAS TO BE REALLY DIRECTED OR AIMED, UH, EMPHASIZED ON THIS SPECIFIC ITEM.
OH, UH, WE HAVE A FOLLOW UP FROM VICE CHAIR THOMAS, SORRY TO CONTINUE ON THE, UM, COMMENT
[00:55:01]
REGARDING, UM, THE PERCEPTION OF BEING A FORMAL COMMISSIONER AND ENDORSING A CANDIDATE.UM, SOME PERSONAL, UH, UH, ACTIVITIES WITH ME HAS BEEN AGREEING TO BE LISTED TO SUPPORT A CANDIDATE FOR OFFICE, AND THEN IT GOES INTO THE KINGDOM OF THE, UM, OF THE TEAM THAT PUTS TOGETHER THE COLLATERAL FOR THE EVENT FUNDRAISING EVENT MM-HMM
AND THEN THEY TAKE IT UPON THEMSELVES TO LIST THAT YOU ARE A COMMISSIONER OF SOME ORGANIZATION.
SO I WOULD JUST ENCOURAGE EVERYONE TO MAKE SURE IF YOU ENDORSE SOMEONE AS A PERSON, A PERSONAL ENDORSEMENT, THAT YOU MAKE SURE THAT THEY UNDERSTAND THEY CANNOT USE YOUR TITLE ON ANY DOCUMENTATION OR COLLATERAL SUPPORTING THEM OR THEIR FUNDRAISING EVENTS.
IS THAT CORRECT? YEAH, COMMISSIONER THOMAS IS, IS, IS EXACTLY CORRECT.
UM, IT'S, YOU, YOU, YOU DO HAVE THE RIGHT TO DO THAT IN YOUR INDIVIDUAL CAPACITY AGAIN, BUT, BUT YOU WANNA BE MINDFUL, YOU WANNA FOLLOW UP IF, IF, IF A, LIKE A COMPANY OR WHATEVER ORGANIZATION SAYS, OKAY, WE'RE GONNA USE YOU AS, AS, YOU KNOW, TO ENDORSE THIS.
YOU DO, YOU CAN EVEN ASK THEM LIKE, I WOULD LIKE TO SEE THIS JUST TO MAKE SURE OR JUST BE ADAMANT.
AND I, I WOULD ENCOURAGE TO MAKE SURE YOU DO THAT IN WRITING TO SAY, HEY, YOU KNOW, YOU CANNOT USE ME OR LIST ME AS COMMISSIONER, YOU KNOW, THOMAS, BUT, BUT JUST AS, AS MY INDIVIDUAL CAPACITY.
BUT YOU DO WANNA BE MINDFUL OF THAT.
THAT WAS A GOOD QUESTION REMINDER, BECAUSE I HAVE SEEN THAT IN PLACES AND I ALWAYS DID WONDER ABOUT THAT, SO THANK YOU.
UM, SO, UH, ANY PUBLIC COMMENT ON THIS AGENDA ITEM? SEEING NONE.
LEMME TAKE A VOTE TO RECEIVE A FILE.
THIS AGENDA ITEM, IT'S WORKING.
OTOY, I WANNA THANK YOU VERY MUCH FOR YOUR PRESENTATION AS WELL AS YOU'VE COME TO ALL OF OUR MEETINGS.
AND THANK YOU FOR BEING HERE TO BE OF SUPPORT TO OUR MISSION.
MOVE ON TO THE NEXT AGENDA ITEM.
COULD YOU PLEASE HAVE THAT READ OUT? ITEM FOUR, RECOMMENDATION
[4. 26-55224 Recommendation to receive and file a presentation on the Revolving Loan Fund Program, and, if appropriate, adopt the updated Economic Development Administration (EDA) Revolving Loan Program Administrative Plan for the City of Long Beach. Suggested Action: Approve recommendation. ]
TO RECEIVE ON FILE, A PRESENTATION ON THE REVOLVING LOAN FUND PROGRAM, AND IF APPROPRIATE, ADOPT THE ADOPTED, UH, UPDATED ECONOMIC DEVELOPMENT ADMINISTRATION REVOLVING LOAN PROGRAM, ADMINISTRATIVE PLAN FOR THE CITY OF LONG BEACH.COULD I HAVE A MOTION AND A SECOND FOR THIS? SO IT'S MOVED BY COMMISSIONER A MOTION NORDIC AND SECOND BY COMMISSIONER SANDOVAL.
UM, AND BEFORE WE JUMP INTO HAVING THE REVOLVING LOAN FUND COMMITTEE, UM, DO THE PRESENTATION, I WANNA THANK OUR COMMISSIONERS.
WE HAVE SEVERAL COMMISSIONERS THAT COMMISSIONER SANDOVAL COMMISSIONER, UM, MATOYER, AND ALSO COMMISSIONER WANT WHO SIT ON THAT REVOLVING LOAN CON FUND COMMITTEE.
I'LL TURN IT OVER TO YOU THEN.
UH, HELLO, MY NAME IS COLIN CONNER.
I'M THE ASSISTANT ADMINISTRATIVE ANALYST FOR ECONOMIC DEVELOPMENT AND OPPORTUNITY.
UH, WE'RE GONNA DO A BRIEF OVERVIEW OF OUR TWO LOAN OPTIONS.
UH, I DO APOLOGIZE IN ADVANCE.
WE DIDN'T HAVE ANY EMOJIS TO THIS ONE, BUT WE'LL MAKE IT HIGH PRIORITY FOR OUR NEXT PRESENTATION,
SO OUR TWO LOAN PROGRAMS WE OFFER RIGHT NOW, TWO SMALL BUSINESSES IN LONG BEACH THAT ARE FOR PROFIT IS A MICRO ENTERPRISE LOAN PROGRAM AND GROW AMERICA GROW LONG BEACH FUND.
FOR THE MICRO ENTERPRISE LOAN PROGRAM, UH, LIKE I MENTIONED, IT HAS TO BE FOR PROFIT, SMALL BUSINESSES OPERATING IN LONG BEACH.
UH, LOAN AMOUNT IS 10,000 TO A HUNDRED THOUSAND, AND INTEREST RATE IS 75% OF THE WALL STREET JOURNAL.
PRIME, UH, WALL STREET JOURNAL PRIME IS CURRENTLY 6.75%.
SO WE'RE LOOKING AT IT 5.06% INTEREST RATE WITH THE 2% LOAN FEE.
IF THE LOAN CLOSES AND THAT'S TAKEN OFF OF THE LOAN, THE, UH, BORROWER DOES NOT PAY THAT FROM THE PERSONAL FUNDS.
UH, THE TERM IS THREE TO 10 YEARS, AND LOAN PROCEEDS, UH, CAN BE BUSINESS EXPENSES, UH, SUCH AS PERSONAL RENT, SUPPLIES, MATERIALS, UTILITIES.
UH, IMPORTANTLY IT CANNOT BE USED FOR CONSTRUCTION OR TENANT IMPROVEMENT.
UM, AND THERE IS A JOB CREATION PIECE FOR BOTH OF THESE LOANS.
UH, IT'S ONE JOB PER $75,000 LENT FROM THE EDA FUND.
AND IF IT'S FROM THE CDBG FUND, IT'S ONE JOB PER $35,000 LENT.
AND THERE IS A BUSINESS AND PERSONAL GUARANTEE REQUIRED FOR ALL LOANS, UH, WHICH INCLUDES A UCC FILING ON ALL BUSINESS ASSETS, UH, LIKE EQUIPMENT, UM, OR ANY OTHER BUSINESS ASSETS.
AND ALL OF THESE LOANS MUST BE APPROVED, MUST BE APPROVED BY THE CITY'S LOAN COMMITTEE.
UM, HOW THE BUSINESSES CAN APPLY FOR THIS LOAN, WE NORMALLY MEET WITH THEM, UH, VIA ZOOM CALL,
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UM, GO THROUGH THE LOAN PROGRAM, AND THEN WE GIVE THEM THIS LINK.SO WE DO A BRIEF VIEW TO MAKE SURE THAT THEY ARE A BUSINESS IN THE CITY OF LONG BEACH.
UM, AND THEN THEY CAN START UPLOADING THEIR BUSINESS DOCUMENTS, UM, WHICH WE REVIEW, UM, TO COMPLETE THE INITIAL REVIEW OF THE PACKAGE AND THEN GROW AMERICA STEPS IN TO REVIEW ALL THEIR, UH, ONLINE APPLICATION, THE UNDERWRITING, THEY CREATE A CREDIT MEMO, UM, THAT GETS PRESENTED TO THE RLF LOAN COMMITTEE.
AND THE LOAN COMMITTEE IS IN CHARGE OF APPROVING OR, UH, DENYING THOSE LOANS.
OH, AND WE DO, UM, REFER ALL OF THESE BUSINESSES THAT WE MEET WITH, UM, TO SBDC, UH, TO COMPLETE THE LOAN APPLICATION SPECIFICALLY, UH, MAX OR DONUTS.
UM, THEY'RE VERY FAMILIAR WITH OUR APPLICATION PROCESS AND CAN ASSIST THE BUSINESSES WITH THE LOAN, AS WELL AS OTHER RESOURCES, UM, THAT THE CITY MIGHT NOT BE ABLE TO PROVIDE.
UH, NOW FOR THE GROW AMERICA, UM, SAME THING FOR PROFIT, SMALL BUSINESSES OPERATE IN LONG BEACH.
THIS ONE'S A HUNDRED THOUSAND TO 5 MILLION, AND THAT'S WALL STREET JOURNAL PRIME, PLUS 2.75%.
UM, SO YOU'RE LOOKING AT ABOUT 9.5% INTEREST RATE, AND THIS IS A TERM FOR 10 TO 25 YEARS.
AND THIS CAN BE THE SAME PROCEEDS AS MICRO ENTERPRISE, BUT THIS CAN BE USED FOR CONSTRUCTION, UH, TENANT IMPROVEMENT AND EQUIPMENT.
UM, THESE LOANS ARE UNDERWRITTEN BY GROW AMERICA, UH, AND GUARANTEED BY THE SMALL BUSINESS, UH, ADMINISTRATION, SBA LOANS AND A SIMILAR APPLICATION PROCESS.
THERE'S THE PRE-SCREENING, UH, TO ENSURE THAT THE BUSINESS IS LOCATED IN LONG BEACH, AND THEN WE REFER THEM OVER TO THE GROW AMERICA TEAM.
UH, IT'S CURRENTLY BRIAN SALVA AND, UH, WE DO LIKE A LITTLE EMAIL REFERRAL AND THEY TAKE IT FROM THERE DOING THE UNDERWRITING, UM, AND THE LOAN PROCESS.
AND AGAIN, WE, WE RECOMMEND THAT THEY, UH, CONNECT WITH SBDC, UH, TO ASSIST WITH THAT APPLICATION PROCESS.
AND I'M GONNA HAND IT OVER TO CARLA TO TALK ABOUT THE LOAN PROGRAM PROCESS FROM HERE.
AGAIN, MY NAME IS CARLA ANGUIANO AND I'M THE PROGRAM MANAGER FOR THE CITY OF LONG BEACH'S SMALL BUSINESS LOAN PROGRAM.
SO WE WANTED TO TAKE YOU THROUGH THE PROCESS.
SO WE LET BUSINESSES KNOW THAT THE PROCESS TAKES ABOUT FOUR MONTHS.
WE TELL THEM, TELL THEM THAT UPFRONT.
WE GET REFERRALS FROM EITHER EMAILS, THEY CALL THROUGH, UM, OUR BIZ CARE LINE.
SOMETIMES WE GET REFERRALS FROM YOU.
AND JUST LIKE, UM, COMMISSIONER MATOYA WAS TALKING ABOUT BEFORE, IF YOU KNOW BUSINESSES THAT YOU WORK WITH THAT CAN BENEFIT FROM OUR LITTLE PROGRAM, YOU CAN REFER THEM TO US.
AND THEN WHAT WE DO IS, AS, AS, UH, COLTON MENTIONED, WE MEET WITH THEM VIA ZOOM.
IT MAKES IT EASY AND IT'S QUICK INSTEAD OF US GOING OUT, BUT WE HAVE GONE OUT TO MEET WITH BUSINESSES AT THEIR PLACE OF BUSINESS.
THE, THE BA THE BASIS OF THE MEETING IS WE WANNA ENSURE THAT WE UNDERSTAND WHAT THEIR BUSINESS IS ABOUT.
SO WE ASK THEM TO TELL US ABOUT THEIR BUSINESS.
AND WHAT WE TRY TO DO TOO IS WE TRY TO DO SOME RESEARCH BEFOREHAND SO THAT THEY KNOW THAT WE KNOW A LITTLE BIT ABOUT THEIR BUSINESS AND WE ASK THEM JUST TO TELL US ABOUT THE BUSINESS AND WHAT THEIR ACTUAL NEED IS.
WE KNOW THAT MOST TIMES WHEN PEOPLE MEET WITH US, THAT IT'S JUST AS A RESOURCE JUST TO FIND OUT WHAT THE LOAN PROGRAM IS ABOUT.
BECAUSE MOST BUSINESSES PREFER FREE MONEY.
THEY PREFER GRANTS, THEY PREFER THAT, BUT THEY'RE LOOKING AT THE LOAN PROGRAM TO SEE IS IT FEASIBLE? IS IT SOMETHING THAT I CAN TAP INTO? WE ACTUALLY MEET WITH MORE BUSINESSES AND PROVIDE RESOURCES THAN WE ACTUALLY GIVE LOANS.
WE MEET WITH PROBABLY A HUNDRED BUSINESSES A YEAR AND PROBABLY ONLY GIVE 10 LOANS A YEAR.
SO WE SAY THAT WE PROVIDE RESOURCES MORE THAN LOANS.
AFTER THE MEETING, WE SEND THEM, AS COLTON MENTIONED, WE SEND THEM THE LINK.
SO RIGHT AFTER THAT THEY CAN START THE APPLICATION PROCESS AND WE'LL LET THEM KNOW THAT UPLOADING THE DOCUMENTS INTO THE PORTAL IS PRETTY STRAIGHTFORWARD.
AND AS COLTON MENTIONED, WE CONNECT THEM ALSO WITH SBDC.
THEY CAN PUT MAX AS A COLLABORATOR ON THEIR LOAN AND HE COULD ACTUALLY UPLOAD THE DOCUMENTS FOR THEM.
ONCE THEY GET TO A POINT WHERE THEY HAVE UPLOADED ALL THEIR DOCUMENTS, THEN WE SCHEDULE A MEETING WITH, SHOULD I PUT THIS? I SHOULD BE MOVING THIS.
SO WE, WE, WE ACTUALLY GET AN OPPORTUNITY TO HAVE THEM MEET WITH ANDREA, WHO WILL BE SPEAKING LATER, WHO IS OUR UNDERWRITER.
SHE'LL LET US KNOW TO GO AHEAD AND PULL THEIR CREDIT AND SHE'LL REVIEW THEIR FINANCIALS, ALL OF THEIR DOCUMENTS, PROFIT AND LOSS STATEMENTS, THEIR LOAN DOC, EXCUSE ME, THEIR, UM,
[01:05:01]
THEIR TAX RETURNS, THEIR, UH, ALL THE FINANCIAL RECORDS THAT THEY HAVE, THAT THEY UPLOADED.SHE WILL REVIEW THOSE DOCUMENTS ALONG WITH THEIR, THEIR CREDIT REPORT.
NOW, WE GET QUESTIONS ALL THE TIME.
DO WE HAVE A MINIMAL CREDIT REPORTING THAT WE ARE LOOKING AT? BUT WE TELL THEM, WE LOOK AT THE FINANCIALS ALTOGETHER.
BUT IF THEY HAVE ISSUES ON THEIR CREDIT REPORT, THEN WE'RE ASKING THEM TO EXPLAIN THAT.
ONCE WE HAVE ALL THE DOCUMENTS TOGETHER, THEN WE, THEN IT'S UP TO ANDREA TO PACKAGE THAT.
SHE ACTUALLY PRE PACKAGE THAT INTO WHAT WE CALL A CREDIT MEMO.
THAT CREDIT MEMO INCLUDES ALL OF THE FINANCIAL INFORMATION AND EXPLAINS EVERYTHING.
IT GIVES INFORMATION ABOUT THE BUSINESS, AND THEN AT THE END, IT GIVES A RECOMMENDATION AS TO WHETHER OR NOT WE SHOULD FUND THIS LOAN.
NOW, WANNA MAKE SURE THAT YOU UNDERSTAND WE REALLY SCRUTINIZE THESE LOANS BEFOREHAND, BEFORE WE BRING IT TO THE REVOLVING LOAN FUND SUBCOMMITTEE.
WE ENSURE THAT IT'S GOING TO BE APPROVED BECAUSE WE KNOW THAT THERE'S GOING TO BE HARD QUESTIONS.
SO WE ENSURE THAT WE ANSWER THOSE QUESTIONS AHEAD OF TIME.
I HAVE TO SAY, ALL THE LOANS THAT WE'VE BROUGHT TO THE COMMITTEE SO FAR HAVE BEEN APPROVED.
THERE WAS ONE LOAN THAT WE WERE GOING TO BRING TO THE COMMITTEE, AND WE HAD QUESTIONS.
WE HAD QUESTIONS FROM OUR LEADERSHIP, AND THEN WE DECIDED NOT TO BRING IT FORTH BECAUSE WE KNEW THAT IT WAS NOT GOING TO BE SOMETHING THAT WAS GONNA BE FEASIBLE FOR, FOR US.
BUT USUALLY WE'LL SCREEN THEM OUT EVEN BEFORE THEY GET TO THE POINT THAT THEY'RE MEETING WITH THE UNDERWRITER.
ONCE WE DO THAT, WE BRING IT TO THE LOAN COMMITTEE, AND ONCE THE LOAN COMMITTEE, UM, APPROVES THE LOAN, THEN WE GO THROUGH THE, THE CLOSING PHASE.
DURING THE CLOSING PHASE, WE ASK FOR ADDITIONAL DOCUMENTATION THAT WE ASK THEM TO SUBMIT WITHIN A WEEK.
AND AFTER THEY SUBMIT THOSE DOCUMENTS, WE DO A DIRECT PAYMENT PROCESS.
AND WE DO WHAT I KNOW SOME OF YOU GUYS MIGHT REMEMBER YEARS AGO, PUBLISHERS CLEARINGHOUSE LARGE CHECK WITH BALLOONS AND ALL OF THAT.
WE TRY TO DO THE SAME THING TO GIVE THAT AN EXPERIENCE TO THE BUSINESS, BECAUSE BY THE TIME THOSE FOUR MONTHS ARE UP, SOMETIMES LESS, WE'VE PUT THEM THROUGH THE RINGER, SO TO SPEAK, TO PROVIDE THOSE DOCUMENTS AND TO GO THROUGH THIS PROCESS.
SO WE WANT TO LET THEM KNOW THAT IT'S OUR PLEASURE TO PROVIDE THIS RESOURCE TO THEM.
AND SO WE DO PICTURES OUTSIDE OF CITY HALL.
SOMETIMES WE, WE, WE, WE EVEN GO TO THE BUSINESS TO DO IT AS WELL.
WE DO INVITE THE BIDS IF THEY'RE IN A SPECIFIC BID AREA, TO ALSO TAKE THE PICTURES.
WE TRY TO INCLUDE OUR CITY COUNCIL REPRESENTATIVES, BUT WE HAVEN'T BEEN REALLY SUCCESSFUL WITH THAT.
ONLY BECAUSE ONCE WE GET A CHECK, IF WE GET A, IF WE GET INFORMED BY OUR AUDITORS DEPARTMENT THAT WE HAVE A CHECK READY TODAY, WE WANNA GET THAT CHECK IN THE HAND OF THE BUSINESS TODAY.
SO THERE'S NO COORDINATION IN ORDER TO DELAY THAT.
SO WE TRY TO GET THAT AS SOON AS POSSIBLE.
SO THE NEXT SLIDE BASICALLY JUST GIVES YOU AN OVERVIEW OF EVERYTHING THAT I JUST MENTIONED, AND IF YOU HAVE ANY QUESTIONS, YOU COULD DEFINITELY ASK THOSE AFTER.
AND THEN I JUST WANTED TO GIVE YOU AN, JUST AN UPDATE OF WHERE THE PORTFOLIO IS CURRENTLY.
DURING THE PANDEMIC, WE HAD WHAT, WE HAD EMERGENCY LOANS, AND WE DID GIVE OUT 102 EMERGENCY LOANS.
THOSE WENT FROM 2 2500 UP TO 10,000.
AND WE GAVE OUT $110,000 LOANS AND TWO $5,000 LOANS.
CURRENTLY, WHAT'S REMAINING, BECAUSE THAT WAS, REMEMBER FROM 20 20, 20 21, WE HAD 58 REMAINING OUT OF THE HUN 102.
UM, THE LOAN AMOUNT FOR THOSE 58 IS 575,000.
THE OUTSTANDING BALANCE OF THOSE LOANS IS 271,000.
MICRO ENTERPRISE, AS COLTON MENTIONED, THAT THAT GOES NOW FROM 10,000 UP TO, TO A HUNDRED THOUSAND.
BUT AT THIS POINT, IT WENT FROM 25,000 UP TO A HUNDRED THOUSAND.
WE CURRENTLY HAVE 48 OF THOSE LOANS THAT ARE 3.3 MILLION, AND THE OUTSTANDING BALANCE IS 2.3 MILLION.
SO WE HAVE A TOTAL OF 106 LOANS NOW 3.8 MILLION WITH AN OUTSTANDING BALANCE OF 2.5 BILLION.
YOU NOTICE THAT WE ALSO HAVE JOBS, RETAINED JOBS, JOBS CREATED.
THAT'S AN IMPORTANT PART OF OUR LOANS, AS COLTON MENTIONED.
SO FOR THOSE EMERGENCY LOANS, WE HAVE RETAINED 179 JOBS.
WE'VE CREATED 48 FOR THE MICRO ENTERPRISE.
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WE HAVE RETAINED 188 AND CREATED A HUNDRED AND 108.SO THE TOTAL JOBS RETAINED FROM EMERGENCY AND MICRO ENTERPRISE LOANS, 367.
AND FOR THE JOBS CREATED A TOTAL OF 156, AS I MENTIONED.
AS I MENTIONED, WE UTILIZE OUR BIZ CARE TEAM TO GET A LOT OF THE INFORMATION OUT.
THEY CALL THE HOTLINE, AND WE ASK PEOPLE TO GO THROUGH THAT LINE IN ORDER TO GET CONNECTED TO US SO THAT WE BEGIN, WE CAN BEGIN THE CONVERSATION ABOUT THE LOANS.
BUT AGAIN, IF YOU, AS OUR COMMISSIONERS HAVE ANY BUSINESSES THAT YOU'RE WORKING WITH THAT YOU LIKE TO WORK WITH US, YOU CAN CONTACT US THROUGH THE BIZ CARE LINE OR CONTACT US DIRECTLY.
THANK YOU VERY MUCH FOR YOUR TIME.
AND NOW WE'RE GOING TO CONNECT UP WITH OUR, UM, GROW AMERICA UNDERWRITER, ANDREA MARTINEZ.
HI, UM, I'M ANDREA MARTINEZ, MANAGING DIRECTOR OF LENDING ADVISORY SERVICES FOR GROW AMERICA.
AND BEFORE I GET INTO MY PRESENTATION, WE WANTED TO HAVE A LITTLE INTERLUDE WITH OUR GUEST SPEAKERS.
WE HAVE, UM, SOME LOAN RECIPIENTS HERE THAT ARE GOING TO GIVE A LITTLE BIT OF A TESTIMONIAL ABOUT THEIR EXPERIENCE WORKING WITH THE FUND.
UM, AND WE HAVE LORI SIMON AND ERIN O'HAGAN FROM OLIVE'S GOURMET GROCER.
HI, UH, I'M LORI SIMONE, AND THIS IS ERIN.
UM, WE OPENED OLIVES, UH, 22 YEARS AGO.
SO WE'VE BEEN HERE FOR A MINUTE.
AND I KNOW, UH, VIVIAN FROM MANY THINGS.
JUST, YOU KNOW, ANDREA CALLED AND SAID, HEY, DO YOU GUYS MIND COMING AND TALKING? IT'S LIKE, WE HAVE BEEN THE RECIPIENTS OF MANY PROGRAMS THROUGH THE YEARS.
UH, BACK IN 2007, WE WERE OPENING A LOCATION ON SECOND STREET, AND WE DID A BIG GROW AMERICA LOAN THAT WE CAME TO THE CITY.
SO ASKED IF THEY WOULD HELP US FUND IT, 'CAUSE IT WAS GONNA BE A BIG REMODEL.
AND THEY KIND OF FILL, UH, FED US INTO THE GROW AMERICA PLAN AND WE GOT A LOAN WITH THEM.
UH, SEVEN YEARS LATER, WE ACTUALLY GOT RID OF THAT STORE BECAUSE IT WAS A REALLY BAD, UH, BUSINESS DECISION.
BUT, UM, THAT WAS OUR FIRST INTRODUCTION INTO THE CITY AND LIKE A LOAN.
'CAUSE WE DID GET A LOAN WHEN WE OPENED ALL OF ORIGINALLY.
AND THEN IN I THINK 2010, 2011, WE WENT THROUGH THE 10,000 SMALL BUSINESS PROGRAM THAT WAS PUT ON KIND OF THROUGH ALL THIS WITH, UM, GOLDMAN SACHS.
AND THEN IN, UH, 2015 WE GOT OUR FIRST LOAN THROUGH THE CITY.
I THINK IT WAS, I DON'T KNOW IF THEY WERE MICROLOAN BACK THEN, BUT, UH, WE WERE OPENING A RESTAURANT.
AND SO THEY GAVE US A SMALL LITTLE LOAN TO HELP US GET THE REST OF THE MONEY WE NEEDED TO GET OUR RESTAURANT OPEN.
UH, TASTE, WINE, BEER, KITCHEN THAT OPENED.
WE JUST REOPENED IT LAST JULY.
SO IT'S NOT BEEN QUITE OPEN A YEAR AGAIN, UH, A YEAR AGAIN.
UM, AND THEN IN 2019, BEFORE COVID, WE CAME BACK AND ASKED FOR ANOTHER LOAN.
'CAUSE WE WERE BUILDING A PARKLET.
SO IT HELPED US DESIGN AND BUILD THE PARKLET.
WE WERE, I THINK THE FOURTH PARKLET THAT WAS PUT ON THE STREET.
TOOK US ABOUT TWO YEARS TO GET THAT APPROVED BECAUSE THIS, THE TRAFFIC WAS TOO FAST ON THE STREET.
BUT YOU, THE CITY DID A GREAT JOB OF ACTUALLY GETTING US THROUGH THAT.
AND WE HAVE A BEAUTIFUL PARKETTE THAT WE STILL GET TO USE.
AND THAT WAS BEFORE COVID? YEAH, THAT WAS, WE OPENED IN OCTOBER.
IT GOT FINISHED IN OCTOBER OF 2019.
AND WE CLOSED THE RESTAURANT IN MARCH OF 2020.
SO OUR TIMING SOMETIMES WAS NOT THE BEST.
UM, AND THEN IN 20, JUST IN 20 JANUARY, THIS PAST JANUARY, WE GOT, UH, ONE MORE LOAN.
UH, WE NEEDED, YOU KNOW, WE'RE 20 YEARS OLD, 21 YEARS OLD.
A BUNCH OF OUR STUFF NEEDED, WE NEEDED TO UPGRADE OUR POS SYSTEM.
WE WERE PUTTING IN A NEW, UH, WALK-IN IN THE, THE STORE.
WE NEEDED SOME, WE NEEDED TO HIRE MORE PEOPLE.
'CAUSE WE'RE ACTUALLY BEEN, WE'RE WE'RE BLESSED THROUGH COVID.
UH, WE DIDN'T HAVE TO TO CLOSE.
AND OUR BUSINESSES WERE SO FAR TRENDING HIGHER AFTER 22 YEARS, WE'RE STILL COMPING POSITIVELY, WHICH WE'RE PRETTY PROUD OF.
UM, THE LOANS REALLY, WE HAVE NOW A TEAM OF 30 THAT WE EMPLOY AT OLIVES, WHICH IS PRETTY GOOD.
AFTER, YOU KNOW, ALL OF THIS, WE'RE STILL HIRING.
WE JUST HIRED A NEW GIRL, STARTED TODAY.
UM, AND WE'RE LOOKING TO HIRE TWO MORE PEOPLE FOR THE SUMMER.
UM, AND THAT'S A, THAT'S A PRETTY GOOD THING.
AND THAT'S ALL BECAUSE WE HAVE THIS REALLY NICE PEOPLE THAT WE WORK WITH.
UM, WE BOTH, WE KNOW COLTON AND, UH, CARLA.
CARLA, I WANNA CALL YOU KARA EVERY TIME.
UM, AND YOU KNOW, AS FAR AS THE, THE PROCESS FOR US, WE'VE BEEN DOING IT A LONG TIME, SO I FEEL LIKE IT'S A PRETTY STRAIGHTFORWARD PROCESS.
WE'D REALLY JUST WILL EMAIL THESE GUYS AND SAY, HEY, WE NEED SOME MONEY.
AND THEY'RE LIKE, WHAT DO YOU NEED? AND THEY SEND US TO THE PORTAL AND WE UPLOAD ALL OF OUR DOCUMENTS.
AND THEN THEY REALLY ARE THOROUGH ABOUT MAKING SURE THAT THEY HAVE WHAT THEY NEED BEFORE THEY GO TO LOAN APPROVAL.
[01:15:01]
UH, ANDREA WILL SEND US AN EMAIL LIKE, HEY, THIS DOESN'T LOOK RIGHT, LIKE, WHAT'S, EXPLAIN THIS? AND WE GO BACK AND FORTH UNTIL SHE FEELS LIKE THE LOAN PACKAGE IS NICE AND TIGHT.AND WE HAVE NEVER NOT BEEN APPROVED.
UM, WE'VE NEVER NOT HAD OUR LOAN SUBMITTED.
UM, AND, YOU KNOW, THE RATES AND THE TERMS ARE REALLY FAVORABLE FOR US AS A SMALL BUSINESS.
UM, THEY, IT'S, IT'S AN INTERESTING PROCESS.
IT'S, WE PAY BACK THIS COMPANY CALLED WESTSTAR.
I DON'T KNOW HOW THAT WORKS, BUT, UM, THAT'S WHERE THE, THE LOAN PAYMENTS GO AND ALL THE LOANS WE'VE PAID OFF.
WE'VE NEVER DEFAULTED ON ANYTHING.
AMERICA DID A GREAT JOB OF WORKING WITH US ON THAT.
AND I REALLY BELIEVE THAT, LIKE, FOR US AS A SMALL BUSINESS, THESE PROGRAMS HAVE HELPED US CONTINUE TO GROW.
YOU KNOW, IT DOES TAKE A WHILE, SO YOU CAN'T NEED THE MONEY.
LIKE
'CAUSE THEY DO DO THEIR D THEIR DUE DILIGENCE AND YOU HAVE TO PROVIDE QUOTES FOR WHATEVER YOU YOU WANNA DO.
AND, UH, SOMETIMES WE HAVE TO PUT THAT MONEY OUT ON CREDIT CARDS AND THEN WE GET YOUR MONEY AND WE GET TO PAY THE CREDIT CARDS BACK.
BUT WE ALWAYS END UP GETTING THE FUNDS.
SO IT'S BEEN VERY HELPFUL, UH, HAVING THAT KIND OF IN OUR BACK POCKET FROM THE CITY.
AND I DON'T KNOW IF OTHER CITIES DO IT 'CAUSE WE ONLY HAVE A BUSINESS IN LONG BEACH, BUT, UM, WE'RE VERY THANKFUL FOR THE PROGRAM.
SO, YOU KNOW, THANKS FOR LISTENING TO OUR LITTLE STORY AND HAVING US HERE.
WE REALLY APPRECIATE YOUR COMMENTS.
UM, AND I'M GONNA CONTINUE WITH THE PRESENTATION, BUT THIS IS A REALLY GREAT EXAMPLE OF A BUSINESS THAT HAS COME BACK MANY TIMES.
YOU CAN APPLY MULTIPLE TIMES, UM, FOR THE LOAN PROGRAM.
UM, AND AS THEIR BUSINESS HAS EVOLVED OVER THE YEARS, THERE'S DIFFERENT USES OF FUNDS, UM, AND KIND OF THROUGHOUT THE EVOLUTION AND LIFECYCLE OF THE BUSINESS.
UH, THE TWO LOAN PROGRAMS ARE DESIGNED TO, UM, OPERATE IN TANDEM SO THAT IF YOU'RE STARTING, YOU NEED A SMALLER AMOUNT.
WE HAVE A LITTLE LOAN PROGRAM AND THEN THE SEVEN A SVA SEVEN A LOANS ARE MET FOR LARGER USES.
YOU CAN EVEN DO COMMERCIAL REAL ESTATE ACQUISITION, TENANT IMPROVEMENTS, THAT KIND KIND OF THING.
SO IT'S KIND OF WHEREVER YOU ARE IN YOUR LIFE CYCLE, WE HAVE A LOAN PRODUCT THAT CAN HELP YOU.
AND AGAIN, THE WHOLE POINT IS STIMULATING JOB CREATION AND ECONOMIC, UM, YOU KNOW, IMPACT IN THE CITY OF LONG BEACH.
UM, WE WORKED TOGETHER FOR A LONG TIME.
UM, AND SO IT'S REALLY GREAT TO SEE YOU AND I LOVE YOUR FOOD.
DO YOU GUYS HAVE ANY QUESTIONS? LIKE, YEAH, I DON'T KNOW IF WE SHOULD OPEN IT NOW OR WAIT TILL THE END JUST FOR US BEFORE WE LEAVE.
IF YOU SEE COMMISSIONER SMITH, I WANT TO THANK YOU OVER THE YEARS.
YOU DON'T PROBABLY RECOGNIZE ME 'CAUSE I'M NOT WEARING A T-SHIRT AND SHIRT.
BUT I'M ROB SMITH, I OWN ALLEY CAT DELIVERIES, AND WE'VE DONE SEVERAL DELIVERIES AND I WILL SEE YOU GUYS MONDAY FOR THE CHANCELLOR'S OFFICE.
SO THANK YOU FOR, THANK YOU FOR YOUR SUPPORT.
I APPRECIATE YOU GUYS AND THANK YOU FOR CONTINUE TO WORK IN LONG BEACH AND SUPPORTING OUR COMMUNITY.
THANK YOU FOR THE, UM, FOR THE, THE CASE STUDY AND, AND FOR BUILDING THIS SUCH A GREAT COMMUNITY HERE IN LONG BEACH.
UM, I'M CURIOUS, YOU'VE GONE THROUGH THE PROCESS A FEW TIMES.
UM, HAVE YOU SEEN OTHERS IN THE COMMUNITY THAT MAY NOT BE SO COMFORTABLE WITH THE PROCESS? AND WHAT RECOMMENDATIONS WOULD YOU GIVE TO I I SUPPOSE THE, THE, THE CITY, UM, TO HELP OTHERS BE SO SUCCESSFUL IN UTILIZING THESE RESOURCES? WELL, YOU HAVE TO WANNA TAKE ON DEBT, WHICH IS, AS A BUSINESS IS ALWAYS, YOU KNOW, CAN BE DICEY.
UM, THE PROCESS IS TIME CONSUMING.
AND, UM, AS A SMALL BUSINESS OWNER, WE, IT'S ME AND ERIN.
WE ARE THE ACCOUNTANTS AND WE ARE THE, YOU KNOW, WE PURCHASE AND WE MAKE SANDWICHES WHEN WE NEED TO MAKE SANDWICHES.
AND SO IT'S NOT, YOU KNOW, THERE'S NO REAL DIVISION BETWEEN US AND OUR STAFF.
AND SO SOMETIMES THE, THE REQUIREMENTS AND THE CONSTANT, YOU KNOW, THE BACK AND FORTH, IT'S LIKE, YOU JUST NEED TO SUBMIT THIS ONE MORE TIME.
SO THE, IF YOU NEED THAT MONEY FAST, IT'S NOT HAPPENING.
AND THAT I THINK SOMETIMES BECOMES A DETERRENT FOR PEOPLE.
'CAUSE SOMETIMES WHEN YOU NEED MONEY, YOU NEED THE MONEY.
LIKE YESTERDAY NOW, NOT IN FOUR MONTHS.
SO, BUT OTHER THAN THAT, I THINK, I THINK THE PROCESS, WE'VE RECOMMENDED THE LOAN.
I DON'T KNOW IF ANYBODY WE'VE EVER TOLD ABOUT IT HAS USED IT IN THE PAST, BUT WE HAVE HAD GREAT, GREAT SUCCESS.
SO I, I THINK, I DON'T KNOW HOW TO MAKE THE PROCESS MORE STREAMLINED.
IT JUST GETS A LITTLE CLUNKY ALONG THE WAY.
BUT I MEAN, PART OF UH, PART OF IT IS LIKE THEY'RE REQUESTING PROFIT AND LOSS AND STATEMENTS LIKE THAT BECAUSE YOU NEED IT FOR YOUR BUSINESS.
WELL, SOMETIMES A LOT OF SMALL BUSINESSES MAY NOT HAVE THEIR PROFIT AND LOSS BUTTONED UP YET, OR THEY'RE BEHIND BECAUSE THEY'RE ACTUALLY WORKING IN THEIR BUSINESS.
SO I THINK SOME OF THAT'S JUST A CHALLENGE FOR SOME SMALL BUSINESSES
[01:20:01]
TO TRY TO HAVE, YOU KNOW, EVERYTHING PUT TOGETHER IS, AND SO YOU CAN SUBMIT IT SOMETIMES IS A LITTLE CHALLENGING, BUT THAT WOULD BE IN ANY LOAN PROCESS.IT'S NOT JUST THIS LOAN, IT WOULD BE ANYWHERE.
THEY'RE GOING TO GET MONEY, THEY'RE GONNA NEED TO PRODUCE THESE DOCUMENTS.
UM, THAT'S JUST HOW, YOU KNOW, IT, IT, IT WORKS.
I THINK, I THINK FOR ME PERSONALLY, I THINK IT'S EASIER TO GET LOANS THROUGH YOU GUYS THAN IT IS THROUGH LIKE, THROUGH A CONVENTIONAL BANK.
YOU'RE MUCH MORE WILLING TO WORK WITH US AS A SMALL BUSINESS.
LIKE, YOU KNOW, ANDREA WILL SEND US AN EMAIL BACK AND SAY, HEY, THESE NUMBERS DON'T MAKE SENSE.
AND, AND AS SOMETIMES I DON'T KNOW THE ANSWER
THEY'RE LIKE, ANDREA, I DON'T KNOW WHY THESE NUMBERS DON'T MAKE SENSE TO YOU.
AND SO THAT, THAT IS A REAL, I DON'T THINK LOAN, UH, BANKS ARE GONNA DO THAT FOR YOU.
THAT INTERPERSONAL RELATIONSHIP IS NOT GONNA BE THE SAME.
AND THERE'S TIMES WHERE SHE'S ACTUALLY MADE US LOOK AT OUR BUSINESS DIFFERENTLY.
IT'S LIKE, WHY AREN'T YOU HITTING SOMETHING AND YOU HAVE TO LOOK AGAIN? AND SO IT'S BEEN VALUABLE IN THAT WHEN SHE'S REVIEWING YOUR DOCUMENTS, IT'S NOT JUST YOU'RE PUTTING IN YOUR DOCUMENTS, SHE'S ACTUALLY, THEY'RE REVIEWING IT AND THEY GIVE FEEDBACK.
IT'S LIKE, THIS LINE LOOKS OUTTA WHACK OR YOU JUST DON'T SEEM TO BE MAKING IT, OR WHAT, WHAT'S GOING ON.
AND IT'S, IT'S TAKEN US TO STEP BACK AND LOOK AT IT AND SAY, HEY, HOW COULD WE BE DOING THIS DIFFERENTLY? OR WHAT ARE WE MISSING? UH, SO THE COACHING HAS ALSO BEEN VERY VALUABLE IN THIS PROCESS THAT YOU, SECONDARY TO THE MONEY, IT'S, IT'S HELPING US UNDERSTAND, BECOME BETTER BUSINESS OWNERS.
BECAUSE SHE, YOU KNOW, I, WE NOW THE BOOKS ARE USUALLY CLOSED BY THE 10TH OF THE MONTH WHERE IT USED TO BE THREE OR FOUR MONTHS LATER.
AND ANDREA'S LIKE, WHY DON'T YOU HAVE LAST MONTH? IT'S LIKE, BECAUSE I DON'T HAVE SIX MONTHS AGO,
LIKE THEY MAKE YOU MORE DILIGENT IN YOUR BUSINESS.
AND, AND THAT'S, THIS SOUNDS A LOT LIKE THE, UM, THE MAJORITY OF THE, UH, GIVING HERE IS AN IN KIND SERVICES.
UH, AND THAT, I THINK THAT'S A HUGE OPPORTUNITY HERE, WHICH IS AN ENTRY POINT FOR FOLKS WHO ARE RUNNING A SMALL BUSINESS TO, TO LEARN AND GROW AND HAVE THE CITY SUPPORT WITH POTENTIALLY A LOAN AT THE END OF THE PROGRAM.
BUT IT'S GREAT TO SEE, YOU KNOW, THE 90% THAT DON'T MAKE IT THROUGH TO A LOAN.
UH, HOPEFULLY, HOPEFULLY THEY CAN GET SOME LEARNING ALONG THE WAY AS WELL.
THANK YOU COMMISSIONER SANDOVAL.
CONGRATULATIONS ON YOUR ONGOING SUCCESS.
UH, AND ALSO ANDREA, UH, YOU KNOW, YOU'RE A GEM AND YOU KNOW,
UH, THAT IS GONNA GUIDE YOU THROUGH THAT PROCESS.
'CAUSE THIS CAN BE COMPLICATED.
YOU COULD BE LEFT ALONE IN THE PROCESS AND THAT'S REALLY CHALLENGING.
BUT, UM, AGAIN, CONGRATULATIONS ON THAT.
UH, DO YOU SEE THAT THIS IS, UH, THAT THIS PROGRAM IS BENEFICIAL? YOU KNOW, YOU'RE USING IT FOR OPERATIONS FOR, FOR MAYBE FOR SOME EQUIPMENT OR SOME PRODUCT PURCHASING, RIGHT.
FOR INVENTORY, UM, MAYBE TO KIND OF SUSTAIN YOU THROUGH KIND OF THE NEXT PHASE.
BUT DO YOU ALSO SEE THESE OPPORTUNITIES FOR GROWTH AND FOR SCALE? LIKE, DO YOU SEE, YOU KNOW, KIND OF DOUBLING YOUR FOOTPRINT, MAYBE KIND OF GETTING INTO A LARGER BUILDING OR EXPANDING OUTSIDE OF THAT, THAT AREA? UM, WE DID THAT.
AND WE'VE GONE TO THEM FIRST AND JUST SAID, HEY, WE'RE THINKING OF THIS.
YOU'VE GOT GIVE, GIVE US YOUR FEELINGS, YOUR THOUGHTS, AND IT'S JUST SOMETHING WE SHOULD PURSUE.
AND GOT HONEST FEEDBACK ON THINGS THAT, YOU KNOW, WE'VE CHOSEN NOT TO ON SOME SPOTS.
AND, AND, AND FOR THE PARTNERSHIP THAT WITH GROW AMERICA, WHEN WE LEFT SECOND STREET, WE WERE IN A BAD SITUATION AND WE STILL HAD A HUGE SBA LOAN, A LARGE LOAN.
AND THEY GRANTED US TO TAKE THAT LOAN BACK TO OUR ORIGINAL LOCATION IN BROADWAY AND NOT MAKE US PAY THEM FIRST WITH THE PER, YOU KNOW.
AND SO WE WERE ABLE TO TAKE, GET BACK TO BROADWAY AND MAKE THAT PAYMENT.
UM, AND THEY'VE DONE SOME INCREDIBLE STUFF TO HELP HELP SMALL BUSINESSES.
UM, AND IT'S NOT JUST GETTING THE MONEY IT, BUT IT'S ALSO MANAGING AND, UH, NURTURING YOU THROUGH, YOU KNOW, AS YOU'RE ON THIS DOG PADDLE, THEY'RE, THEY'RE THERE TO HELP YOU AND KIND OF LIKE, KEEP GOING.
YOU, WE OPENED SECOND STREET IN, UH, JULY OF 2008.
AND OUR LOAN WITH GROW AMERICA WAS 7 57, NO, FIVE, I THINK IT WAS 5 15, 5 50, 500 $15,000, WHICH FOR US WAS A LOT OF MONEY.
IT SECURED OUR, OUR HOUSE WAS SECURED AGAINST THAT LOAN AND SECOND STREET.
AND THEN OCTOBER OF 2008, EVERYTHING FELL APART AND WE WERE STILL ON THE, ONE OF THE MOST EXPENSIVE STREETS IN THE CITY AND OUR LANDLORD WANTING TO RAISE OUR RENT.
SO, UM, WE LASTED THERE SEVEN YEARS AND THEN WE WERE LIKE, WE WERE WORKING FOR THE LANDLORD.
AND SO WE SOLD IT AT A HUGE LOSS.
AND GROW AMERICA ALLOWED US, WE WENT, ANDREA WENT TO BATTLE FOR US.
'CAUSE WE COULDN'T PAY THE LOAN BACK WITHOUT SELLING OUR HOUSE.
[01:25:01]
GONNA BE ABLE TO PAY THE LOAN BACK.BUT WE KNEW IF THEY WOULD TRUST US TO TAKE THE MONEY BACK TO BROADWAY, WE WOULD MAKE THE LOANS.
LIKE WE COULD MAKE ENOUGH MONEY OVER THERE BECAUSE THE RENT WAS WAY LESS.
AND I THINK YOU STUCK YOUR NECK OUT FOR US QUITE A BIT.
AND WE PAID THE LOAN OFF A YEAR EARLY.
SO IT, IT WASN'T JUST ME, BUT, UM, WELL YOU WERE PART OF THE GROW AMERICA FUND.
UM, YOU KNOW, THE SBA WE'RE A NON-BANK LENDER.
YOU KNOW, WE DON'T TAKE DEPOSITS.
WE'RE STILL BOUND BY ALL THE SAME RULES AS ANY OTHER SBA LENDER, BUT WE HAVE A LOT MORE FLEXIBILITY ON THE FORECLOSURE AND SORT OF THE PORTFOLIO MANAGEMENT SIDE.
SO THAT'S REALLY A PORTFOLIO MANAGEMENT STORY WHERE, YOU KNOW, WE WERE DOING WEEKLY PAYMENTS FOR A LITTLE BIT TO TRY TO KEEP FOLKS ON TRACK, TRY TO KEEP THEM ON TRACK.
HELP THEM TO NOT DEFAULT, TRY TO LOWER THE PAYMENT AMOUNT.
YOU KNOW, WE DID A LOT, A LOT OF RESTRUCTURE.
WE COULD HAVE CALLED THE LOAN, YOU KNOW, WE COULD HAVE FORCED A FORECLOSURE OR SOMETHING LIKE THAT.
BUT THAT'S NOT THE TYPE OF LENDER
AND SO I THINK THAT'S WHAT THEY'RE TRYING TO INDICATE IS THAT, YOU KNOW, A BANK PROBABLY WOULD NOT HAVE DONE THAT.
THEY'RE GONNA, THEY'RE GONNA FORECLOSE AND THEY'RE GONNA GET PAID OUT OF THE GUARANTEE EVERY TIME AND JUST GO THE LEGAL PROCESS 'CAUSE IT'S EASIER.
IT'S ACTUALLY LESS RESOURCE INTENSIVE.
UM, BUT, YOU KNOW, KNOWING THAT WE HAD THIS RELATIONSHIP WITH THE CITY AND THAT, YOU KNOW, THERE WAS THIS TECHNICAL ADVISORY POINT, YOU KNOW, AND THAT WE HAD ANOTHER LOAN PROGRAM WE'RE WORKING ON, YOU KNOW, WE REALLY TRY TO COMBINE ALL THE RESOURCES TO TRY TO PREVENT, YOU KNOW, A REALLY ESTABLISHED BUSINESS FROM GOING, GOING UNDER DURING A VERY HARD TIME.
I MEAN, THEY HAD TO GO THROUGH
UM, AND AGAIN, THEY NEVER DEFAULTED.
YOU KNOW, WE REALLY WORKED WITH THEM TO, TO RESTRUCTURE.
UM, BUT I THINK WE KNEW THAT, YOU KNOW, THEIR EXPERIENCE LEVEL, THEIR RESPONSIVENESS, YOU KNOW, WE SAW THAT IF YOU REALLY JUST TRY TO WORK WITH PEOPLE, YOU CAN PREVENT, YOU KNOW, THE WORST SCENARIO FROM HAPPENING AND REALLY TRY TO SAVE A BUSINESS.
AND I THINK BOTH PROGRAMS DO THAT.
AND IT'S VERY UNIQUE BECAUSE AGAIN, THE CITY IS THE LENDER AND THE, AND GROW AMERICA IS A NONPROFIT, UM, SBA LENDER.
SO IT'S LIKE MORE MISSION DRIVEN, YOU KNOW, PROVIDING THAT RESOURCE.
UM, AND THAT FLEXIBILITY IN BOTH THE PORTFOLIO MANAGEMENT SORT OF COLLECTION SIDE AND THE UNDERWRITING.
LIKE THEY MENTIONED, A LOT OF BANKS DON'T GO THROUGH ALL THAT BACK AND FORTH.
YOU HAVE TO HAVE YOUR FINANCIALS TIGHT, OTHERWISE YOU'RE GETTING DENIED
AND BACK TO YOUR, YOU DID ASK A QUESTION ABOUT GROWTH AND EXPANSION, WE TRIED TO BUY THE BUILDING THAT WE'RE IN AND THAT WAS ONE OF THE FIRST THINGS THAT WE ASKED THESE GUYS ABOUT.
AND THE NUMBERS JUST WOULDN'T PENCIL.
LIKE WE WERE GONNA BE IN THE NEGATIVE SEVERAL THOUSAND DOLLARS BECAUSE OF THE RENT STRUCTURES IN THE BUILDING CURRENTLY.
AND THEY'RE JUST LIKE, IT'S JUST, YOU'RE GONNA BE IN SECOND
ANDREA'S LIKE, YOU'RE GONNA BE IN SECOND STREET AGAIN.
I'M LIKE, NO, I DON'T WANNA DO THAT.
AND WE WERE ABLE TO ANALYZE IT AND SAY LIKE, OKAY, THIS IS THE NUMBER THAT YOU NEED.
AND LIKE, DO YOU REALLY WANNA GO INTO THAT MUCH DEBT AND AND CAN YOU NEGOTIATE ON THESE POINTS? YOU KNOW, IF YOU, AND THEY COULDN'T, THAT'S WHEN YOU HAVE TO WALK AWAY.
UM, SAME WITH A LEASE SCENARIO.
THEY WERE LOOKING AT LEASE ANOTHER SPACE.
WE WERE LOOKING AT, YOU KNOW, DEBT PAYMENTS AND, AND SORT OF DEBT COVERAGE RATIOS.
AND YOU KNOW, IT'S LIKE YOU CAN, IT BARELY PENCILS, BUT REALLY X, YZ WOULD BE BETTER FOR YOU IF YOU COULD NEGOTIATE THESE THINGS WITH THE LANDLORD.
UH, BUT AT LEAST, YOU KNOW, WE DIDN'T GO INTO MORE DEBT
SO NO, I MEAN THAT, THAT'S, THAT'S THE DIFFERENCE IN HAVING A RELATIONSHIP WITH THIS KIND OF A LENDER AS OPPOSED TO A BANK.
THEY JUST ARE LIKE, IT'S VERY BLACK AND WHITE AND SO IT'S VERY BENEFICIAL.
AND I THINK IF MORE BUSINESSES WOULD GIVE THEM THE TIME, THEY WOULD REALIZE LIKE WHAT THEY CAN DO TO HELP YOU.
'CAUSE WE'VE GROWN OUR BUSINESS WITHIN THOSE FOUR WALLS.
OUR BUSINESSES, WE ARE THREE TIMES WHAT WE WERE, YOU KNOW, 10 YEARS AGO.
OUR BUSINESSES IS MULTIPLIED THAT MUCH AND WE HAVE 30 PLUS EMPLOYEES TO SHOW FOR IT.
SO, AND THAT'S PARTLY BECAUSE OF WHAT YOU GUYS AND THE MICRO ALLOW USS THAT'S FANTASTIC.
AND IT JUST SPEAKS TO THE PARTNERSHIP WITH ECONOMIC DEVELOPMENT AND THAT KIND OF ADVISORY SERVICES THAT IT'S BEYOND JUST CITY PROVIDES LOANS.
IT'S LIKE THEY ACTUALLY GUIDE YOU AND RECOMMEND AND, YOU KNOW, SAVE YOU FROM
UM, ANY OTHER COMMENTS? QUESTION? OKAY.
AND, UM, YOU KNOW, IT'S INTERESTING 'CAUSE I'VE SEEN A LOT OF YOUR JOURNEY AND FOR A LONG BEACH BASED BUSINESS, UM, TWO PEOPLE WHO HAVE REALLY PARTNERED WITH NOT JUST THE CITY, BUT WITH OUR COMMUNITY TO CREATE JOBS, RETAIN JOBS, UM, AND PROVIDE REALLY, REALLY WONDERFUL PRODUCTS AND SERVICES THROUGH YOUR OLIVES.
AND THANK YOU SO MUCH FOR BEING HERE.
UM, AND ANDREA, I, YOU KNOW, WE'LL GET A CHANCE
[01:30:01]
TO SHARE MORE ABOUT WHAT GROW AMERICA DOES.UM, BUT YOU KNOW, IT IS FORTUNATE FOR THIS CITY OF LONG BEACH TO HAVE THE REVOLVING LOAN FUND ONE, UM, WHICH IS MANAGED BY GROW AMERICA, BUT ALSO ACCESS TO THE EXPERTS FROM THAT TEAM.
BECAUSE THAT PARTNERSHIP, THAT RELATIONSHIP THAT I, I MEAN, I SEND PEOPLE TO ANDREA ALL THE TIME JUST SAYING, YOU KNOW, WOULD YOU KIND OF LOOK AT THEIR NUMBERS? AND SHE'S VERY DIRECT AND, AND VERY, UM, EXPERT, LIKE THE WAY SHE DOES THE ANALYSIS SO THAT PEOPLE DO FIND OUT HOW THEY CAN DO SOMETHING NOT JUST FOR TODAY BUT IN THE FUTURE.
SO, UM, YOU KNOW, CITY'S VERY FORTUNATE TO HAVE THOSE SERVICES, BUT CONGRATULATIONS TO, IT WAS GOOD.
I SAW YOUR NAME, WE'RE LIKE, HEY, VIVIAN'S HERE.
AND THANK YOU SO MUCH FOR SHARING YOUR SITUATION WITH US AND OUR VICE CHAIR THOMAS.
I JUST WANTED TO SAY, UM, YOU'RE ONE OF THE BLESSINGS ON BROADWAY.
I OWN THE PET STORE FOR MANY YEARS.
BELMONT PET LAUNDRY PET, YOU SAVED MY BACON.
DOESN'T LOOK LIKE I NEED NOURISHMENT.
BUT YOU DID SAVE IT NUMBERS OF TIMES, INCLUDING GRABBING SOMETHING FOR A CUSTOMER THAT'S ON HER WAY.
'CAUSE IT'S HER BIRTHDAY AND I WANT TO GIVE HER A BOTTLE OF WINE OR SOMETHING LIKE THAT.
SO, UM, AND HAVING BEEN ON BOTH SIDES OF THE STREET, SO TO SPEAK, LOCAL GOVERNMENT GETTING A PAYCHECK EVERY TWO WEEKS TO ACTUALLY MANAGING A SMALL BUSINESS AND MAKING PAY PAYROLL SOMETIMES OUTTA MY OWN SAVINGS IN THE LEAN YEARS.
I, I REALLY APPRECIATE YOUR TENACITY.
I MEAN, HONESTLY, I KNOW WE LIVE ON NEWPORT, WE WALK TO WORK.
WE, WE APPRECIATE YOU GUYS SO MUCH.
HEY, UM, ANY PUBLIC COMMENTS ON THIS AGENDA ITEM? UM, WE STILL HAVE A LITTLE BIT MORE, OH, I'M SORRY.
THERE'S ONLY A FEW MORE SLIDES.
UM, SO WE GAVE YOU THE PORTFOLIO OVERVIEW EARLIER FOR THE, UM, MICRO ENTERPRISE LOAN FUND.
AND THIS IS THE GROW AMERICA, UM, FUND OF LONG BEACH, KIND OF WE CALL IT.
UM, AND SO THIS PORTFOLIO, I THINK WAS INITIATED LIKE IN THE NINETIES, 1997 I WANNA SAY.
UM, AND WE'VE HAD DIFFERENT ITERATIONS AND REINVESTMENTS AND EXTENSIONS OF THE CONTRACT OVER MANY YEARS.
UM, BUT THE INITIAL CITY FUNDING WAS ABOUT 1.1 MILLION, AND THEN WE CREATED LIKE A FOUR AND A HALF MILLION DOLLAR LOAN FUND.
AND SO OVER THE YEARS WE'VE ACTUALLY LEVERAGED THE CITY'S INVESTMENT LIKE 12 TO ONE.
WE'VE MADE ABOUT 40 LOANS, AVERAGE LOAN SIZES, ABOUT 300,000, UM, ALMOST 600 JOBS CREATED AND RETAINED.
UM, WE STILL HAVE A GOOD AMOUNT OF CAPACITY LEFT IN THE PROGRAM, ABOUT 4000004.4, AND THERE'S 12 OUTSTANDING LOANS RIGHT NOW THAT TOTAL, UH, 2.3 MILLION.
SO JUST A LITTLE OVERVIEW OF THAT PROGRAM AND WHERE WE'RE AT.
UM, AND I GUESS THAT SPEAKS TO THE LONGSTANDING RELATIONSHIP THAT GROW AMERICA HAS HAD WITH THE CITY, UM, STARTED BACK WHEN THAT FUND INITIATED.
UM, AND SO WE YEAH, DO A LOT OF TECHNICAL ADVISORY SERVICES AS A CONSULTANT, UH, TO THE, TO THE CITY.
AND UNDER PART OF THAT IS, UM, HELPING WITH RECAPITALIZATION OF, OF THE LOAN FUND.
AND SO I'M GONNA TAKE A COUPLE SLIDES HERE TO TALK ABOUT, UM, THE MICRO ENTERPRISE LOAN FUND AND SORT OF HOW WE RECAPITALIZED IT AND THE UPDATES THAT WE MADE TO THE ADMINISTRATIVE PLAN, WHICH IS LIKE A POLICY AND PROCEDURAL DOCUMENT.
IT'S KINDA LIKE YOUR YOUR STANDARD OPERATING PROCEDURES FOR THE LOAN FUND.
UM, AND SO THE BIZ DEV TEAM APPLIED FOR A COMPETITIVE GRANT, UM, BACK IN OCTOBER OF 2023.
UM, THIS WAS UNDER A NOTICE OF FUNDING THAT CAME OUT FOR FY 2324, UM, FOR ECONOMIC DEVELOPMENT ADMINISTRATION, WHICH IS A DEPARTMENT OF COMMERCE PROGRAM.
THEY PROVIDE GRANTS TO MUNICIPALITIES AND PROJECTS.
UM, UNDER THIS ONE IT WAS SPECIFICALLY FOR THE REVOLVING LOAN FUND.
SO A LOT OF STUFF HAPPENED, UH, BETWEEN THEN AND NOW.
BUT FINALLY WE DID RECEIVE, UH, THE NOTICE OF AWARD, UH, JUST A FEW MONTHS AGO, MARCH, 2026.
I THINK YOU GUYS HEARD ABOUT THAT RECENTLY.
SO THAT WAS PART OF SOME OF THE CONSULTING THAT I DID AS WELL.
WE HELPED THE, UH, THE CITY PUT TOGETHER THE APPLICATION, SUBMIT IT.
UM, YOU HAVE TO, UM, ADHERE TO A NUMBER OF DIFFERENT REQUIREMENTS REGARDING MATCHING FUNDS AND, UM, UNEMPLOYMENT RATES.
AND, YOU KNOW, YOU HAVE TO REALLY DOCUMENT YOUR NEED FOR THE GRANT.
AND SO THAT GETS DOCUMENTED IN THE APPLICATION AND THEN REITERATED IN THE ADMINISTRATIVE PLAN.
SO AS PART OF THE ACCEPTING THE GRANT AWARD, UM, WE HAVE TO SUBMIT THIS ADMINISTRATIVE PLAN FOR THE MICRO ENTERPRISE REVOLVING LOAN FUND.
TYPICALLY, THE PLAN IS REQUIRED TO BE UPDATED
[01:35:01]
EVERY FIVE YEARS.UM, AND I JUST WANTED TO NOTE THAT, YOU KNOW, THE PREVIOUS PLAN WAS UPDATED IN 2015, SO THAT'S A DECADE AGO
AND REALLY WHAT HAPPENED THERE WAS THE PANDEMIC IN BETWEEN THE FIVE YEAR UPDATE WOULD'VE COME RIGHT AT 2020.
AND THE EDA WAS GIVING OUT, UM, UH, A POSTPONEMENT, YOU KNOW, THEY BASICALLY POSTPONED EVERYBODY TO, TO DO ALL THESE ADMINISTRATIVE UPDATES.
AND THEN THEY GAVE OUT SOME MORE FREE MONEY IN, IN GRANT AWARDS.
SO THE CITY DID GET ADDITIONAL FUNDING AT THAT TIME.
UM, BUT THAT BRINGS US TO, UM, OH YEAH, AND THEN THE ORIGINAL AWARD THEY GOT, WE DE FEDERALIZED IN JULY OF 2023, SO YOU DON'T HAVE TO REPORT ON IT ANYMORE, BUT, UM, IT STILL CONTINUES TO OPERATE AND REVOLVE AROUND IN THE FUND.
UM, BUT, SO IT'S KIND OF A LONG-WINDED EXPLANATION OF WHY IT TOOK SO LONG FOR US TO REDO THE PLAN AND, AND SORT OF WHAT WE'RE HERE TO TALK ABOUT NOW.
UM, SO I JUST DID A BRIEF OVERVIEW OF THE UPDATES WE MADE TO THE PLAN, UM, BECAUSE IT HAD BEEN SO LONG, YOU KNOW, WE JUST MODERNIZED IT IN A LOT OF WAYS.
WE NEEDED TO UPDATE, UM, FIRST OF ALL, YOU KNOW, THE DEPARTMENT, UH, THE NEW NAME, THE ECONOMIC DEVELOPMENT AND OPPORTUNITY DEPARTMENT.
THERE WAS OLD REFERENCES TO OLD DEPARTMENT, UM, TITLES AND THINGS LIKE THAT.
WE ADDED FOOTNOTES, UM, TO, TO REFERENCE ALL THE SOURCES, UM, FOR ALL THE QUANTITATIVE DATA THAT'S CITED IN THE PLAN.
SO FROM, THERE'S LIKE TWO SECTIONS OF THE PLAN.
THERE'S A STRATEGIC SECTION AND THEN AN OPERATIONAL SECTION.
AND SO THE FIRST SECTION IS STRATEGIC AND PROGRAMMATIC.
AND SO YOU HAVE TO TALK ABOUT, UM, AGAIN, HOW YOUR PLAN RELATES TO OTHER LOCAL STRATEGIC PLANS LIKE THE, UH, LONG BEACH STRATEGIC VISION 2030 AND THE GROW LONG BEACH ECONOMIC, UH, BLUEPRINT.
BOTH OF THOSE THINGS HAD NOT BEEN REFERENCED IN THE PREVIOUS PLAN.
AND SO IT'S IMPORTANT THAT YOUR PLAN AND STRATEGY IS IN ALIGNMENT WITH OTHER PLANS AND STRATEGIES, BOTH OF THE CITY AND THEN THE REGION.
SO THE COMPREHENSIVE, UM, ECONOMIC DEVELOPMENT STRATEGY, THE SAIDS OF THE COUNTY, ALL THE LFS IN THE COUNTY HAVE TO, UM, BE IN ALIGNMENT WITH THAT.
SO WE NEEDED TO ADD A BUNCH OF DATA THERE THAT JUST, UM, REFERENCED, UM, HOW THIS IS IN ALIGNMENT AND NEEDED.
UM, WE UPDATED SOME STATISTICS AND THINGS LIKE THAT.
UM, AND THEN WE ADDED MORE DEFINITION TO OUR LOAN PRODUCTS.
UM, THERE WAS THE REFERENCE TO THE EMERGENCY LOANS THAT WAS ON THE OTHER SLIDES, UH, THAT WAS ADDED AS AN ADDENDUM TO THE 2015 PLAN, ALLOWING THOSE EMERGENCY LOANS, YOU KNOW, TO SORT OF BE OPERATIONAL IN THAT WAY.
AND SO BY PUTTING THEM PERMANENTLY INTO THIS PLAN, WE KIND OF RENAMED THEM RESILIENCY LOANS.
UM, BUT WE ADDED SOME MORE DEFINITIONS TO OUR LOAN PRODUCTS.
SO THERE'S A STARTUP PRODUCT, AN EXPANSION PRODUCT, AND A RESILIENCY LOAN PRODUCT.
UM, AND THEN ADDITIONALLY WE ADDED SOME MORE INFORMATION ABOUT OUR DE FEDERALIZED FUNDS AND KIND OF REFERENCED, UM, THAT THE FUND IS EXISTING, BUT THIS IS ACTUALLY A NEW PLAN FOR THE NEW AWARD.
UH, AND THEN THE SECOND SECTION IS THE POLICY AND PROCEDURAL UPDATES.
UM, THERE WAS A NUMBER OF THINGS THAT WERE JUST INCONSISTENT, RIGHT? SO THE PRO PROCEDURAL OPERATIONAL SIDE, YOU KNOW, IS ONE THING IN PRACTICE AND IT'S ANOTHER THING ON PAPER
SO WE JUST WENT BACK AND KIND OF DOCUMENTED A LOT OF THE OPERATIONAL PROCEDURES, DESCRIPTIONS, INFORMATION THAT HADN'T BEEN DOCUMENTED IN THE PREVIOUS DECADE, UM, INCLUDING THINGS LIKE LINKS, YOU KNOW, TO THE ONLINE, UH, LOAN APPLICATION, ADDITIONAL DETAILS ON OUR PROCEDURES.
THERE'S BEEN A LOT OF DIFFERENT, UM, UPDATES IN THE PERSONNEL AND THE STAFFING, YOU KNOW, UM, OF THE LOAN FUND.
SO MAKING SURE WE'RE REFERENCING THE CORRECT DEPARTMENTS FOR DIFFERENT, UM, AREAS OF THE PROCESS FROM THE UNDERWRITING TO CLOSING.
UM, AND WE ADDED THE, THE DIFFERENT, UM, COST PER JOBS.
THAT WAS ONE THING THAT WAS MENTIONED ON ANOTHER SLIDE.
UM, SO EDA HAS A SLIGHTLY DIFFERENT STANDARD, UM, ONE JOB FOR EVERY 75,000 VERSUS CDBG FUNDS.
I THINK AT LEAST, AT LEAST IN THE RECENT HISTORY, 600,000 OF E OF CDBG FUNDS WERE, WERE PUT INTO THE, OR AUGMENTED, YOU KNOW, INTO THIS LOAN FUND.
AND SO FOR THOSE, YOU HAVE TO TRACK THE JOB CREATION SLIGHTLY DIFFERENTLY AND THE ELIGIBILITY SLIGHTLY DIFFERENTLY.
AND SO WE JUST WANTED TO DOCUMENT THAT, UM, IN, IN THE PLAN.
UH, AND ADDITIONALLY WE UPDATED, UM, WE REMOVED AN INELIGIBILITY REQUIREMENT FOR NONPROFIT ORGANIZATIONS.
UM, THAT WAS NEVER A REQUIREMENT OF EDA AND MANY EDA LFS HAVE EXPANDED TO, UM, INCLUDE NONPROFIT LENDING.
IT'S PROBABLY NOT GONNA BE OUR TARGET, UM, YOU KNOW, BUSINESS.
BUT, UH, IT IS SOMETHING THAT YOU CAN DO AND I THINK IT'S IMPORTANT TO HAVE THAT OPTION OPEN IN THE
[01:40:01]
PLAN.UM, AND THEN WE ADDED AN ADDENDUM, UM, SPECIFICALLY ADDRESSING THE USE OF SOME OF THE DE FEDERALIZED FUNDS.
AND THE ADDENDUM DOESN'T HAVE TO BE, UM, APPROVED BY EDA BECAUSE IT'S REFERENCING THE DE FEDERALIZED FUNDS, BUT WE JUST WANTED TO INCLUDE THAT THERE.
AGAIN, WE'RE JUST TRYING TO REALLY DOCUMENT ALL THE THINGS THAT HAVE HAPPENED,
AND SO THE PLAN IS VERY UP TO DATE.
UM, AND DOES REFERENCE, UM, SOME FUTURE UPDATES.
YOU KNOW, WE DID PUT A LITTLE BIT OF PROCEDURAL STUFF IN THERE ABOUT HOW THE CITY IS, UM, PLANNING TO BRING THE SERVICING IN-HOUSE.
UH, LORI AND ERIN MENTIONED WESTSTAR, THAT'S A THIRD PARTY, UH, LOAN SERVICER THAT DOES THE COLLECTIONS.
AND SO THE CITY'S IN PROCESS OF BRINGING THAT IN-HOUSE, WHICH GIVES YOU MORE CONTROL AND SHOULD, UH, MAKE IT MORE EFFICIENT.
UM, AND JUST, YOU KNOW, KIND OF DIGITIZING SOME OF THE PROCEDURES.
UM, THERE IS STILL A PAPER CHECK GOING OUT AS WELL AS THE BIG CHECK PHOTO OPPORTUNITY THAT WE SAW ON THE SCREEN.
BUT IDEALLY, YOU KNOW, YOU WANNA BE ABLE TO DISPERSE AND COLLECT THE LOAN FUNDS ELECTRONICALLY.
AND THAT'S SOMETHING ELSE THAT'S KIND OF ALLUDED TO IN THE PLAN AS FUTURE PLANS.
UM, BUT ACTUALLY IS NOT INTO PRACTICE QUITE YET, BUT WE'RE GETTING THERE ON, ON THE MODERNIZATION FOR SURE.
THIS IS THE LAST SLIDE WITH OUR INFORMATION AND WE'RE WELCOME TO YOUR QUESTIONS.
ANY QUESTIONS OR COMMENTS? QUESTION.
I THOUGHT THERE WAS SOMEBODY OVER HERE.
UM, I JUST WANNA REITERATE A POINT EARLIER THAT I THINK THAT THIS PROGRAM, IN ADDITION TO PROVIDING LOANS, CAN PROVIDE SUCH GREAT SPECIFIC TIMELY INSIGHTS SERVICE MENTORING TO OTHERS OR, OR OBVI PLAY A COORDINATOR ROLE IN CONNECTING TO THE, UH, TO OTHER RESOURCES THAT THE CITY HAS TO OFFER TO SMALL BUSINESSES.
SO IMPRESSED TO ALREADY SEE THAT.
AND, UM, AND JUST THANK YOU FOR THE, THE WORK YOU DO, COMMISSIONER SANDOVAL.
UM, I'VE LEARNED A LOT SINCE BEING, BEING ON THE COMMITTEE AND, UH, I'M REALLY HAPPY TO BE ON THE COMMITTEE AND BEING ABLE TO, TO SEE, UM, BUSINESSES BEING FUNDED, UH, WITH THESE LOANS THAT ARE, ARE AT A REALLY GREAT RATE TO START.
AND YOU GET ALL THESE ADDITIONAL SERVICES IN ADDITION TO ECONOMIC DEVELOPMENT SUPPORT, RIGHT? UM, WHICH IS REALLY FANTASTIC PACKAGE AND, UM, SHOULD BE REPLICATED, UH, ACROSS DIFFERENT, UH, DIFFERENT CITIES.
UM, BUT I JUST ALSO WANTED TO, UM, POINT OUT A COUPLE OF THINGS.
UM, OR MAYBE, MAYBE CAN, CAN ANSWER A LITTLE BIT MORE ABOUT, YOU KNOW, AT WHAT STAGE CAN A BUSINESS APPLY, EVEN THOUGH THEY, THEY MIGHT HAVE, YOU KNOW, COLLATERAL THEY MIGHT HAVE, UM, YOU KNOW, STRONG FINANCES BEHIND THEM.
YOU KNOW, WHAT STAGES, UH, DO YOU WELCOME THESE BUSINESSES? AND, UM, MAYBE YOU CAN HIGHLIGHT SOME, SOME OF THE BUSINESSES THAT ARE MORE IN THAT STARTUP PHASE THAT, YOU KNOW, THIS BUSINESS, THIS PROGRAM IS KIND OF DESIGNED FOR THEM TO KIND OF GET THEM, GET 'EM TO THAT PHASE.
ALSO, UM, OUTSIDE OF BUSINESSES THAT ARE A LITTLE BIT MORE STABILIZED AND JUST NEED KIND OF THAT NEXT PHASE CAPITAL.
UM, SO WE DO TARGET MOSTLY STARTUPS.
UM, I THINK IN THE PLAN, THE BREAKDOWN WAS, UH, 40% STARTUPS, YOU KNOW, 60% ESTABLISHED BUSINESSES.
SO IT'S ALMOST HALF AND HALF, RIGHT? WHICH IS QUITE A LARGE PERCENTAGE.
MOST OTHER PORTFOLIOS, YOU KNOW, ESPECIALLY AT A BANK, THEY'RE REALLY TRYING TO LIMIT THEIR STARTUPS TO PROBABLY 10, 15% OR LESS, RIGHT? SO THEY'RE DOING MOSTLY ESTABLISHED BUSINESSES.
UM, BUT WE, WE REALLY, UH, TARGET STARTUPS, UM, FOR A NUMBER OF REASONS.
UM, AND WE, WE DO THAT WITH THE, THE MICRO SORT OF ASPECT OF THE LOAN PROGRAM.
SO YOU KIND OF LIMIT YOUR EXPOSURE BY LIMITING THE LOAN AMOUNT AND THEN PROVIDING SORT OF THAT INTENSIVE KIND OF HANDHOLDING TECHNICAL ASSISTANCE AND KIND OF ALSO REQUIRING THAT THEY, YOU KNOW, MEET WITH THE SBDC AND DO A FULL BUSINESS PLAN AND PROJECTIONS.
YOU KNOW, ONE OF THE REQUIREMENTS FOR BOTH ESTABLISHED BUSINESSES AND STARTUPS IS A THREE YEAR FINANCIAL PROJECTION.
SO WE REALLY WANNA SEE, YOU KNOW, CASHFLOW PROJECTIONS, UM, INCOME AND EXPENSE PROJECTIONS WITH YOUR ASSUMPTIONS, HOW YOU'RE GONNA GET TO THOSE SORT OF NUMBERS.
AND WE KIND, I DO VET THEM TO SEE IF THEY'RE REASONABLE, RIGHT? UM, SO WE DO REALLY CATER TO STARTUPS.
WE LIMIT THOSE LOANS TO 25 OR 30 5K, UM, SORT OF DEPENDING ON EXPERIENCE LEVEL AND A NUMBER OF OTHER, YOU KNOW, CREDIT WORTHINESS FACTORS.
UM, SO WE CONSIDER A STARTUP TO BE A BUSINESS THAT HAS, UH, LESS THAN A YEAR IN BUSINESS AND OR, YOU KNOW, NO FILED TAX RETURNS UNDER THE BUSINESS.
UM, IF YOU HAVE AT LEAST ONE YEAR OF TAXES, YOU
[01:45:01]
KNOW, WE CAN AT LEAST LOOK AT THAT YEAR OF TAX RETURNS AND THEN THE INTERIM PERIOD, YOU KNOW, QUARTER ONE, QUARTER TWO OF THE YEAR YOU'RE IN.SO YOU CAN AT LEAST HAVE A LITTLE BIT OF A TREND ANALYSIS THERE.
UM, BUT WE DO ALSO HELP ESTABLISH BUSINESSES.
UM, I THINK LORI AND, AND ERIN KIND OF HIGHLIGHTED THAT IN A REALLY GOOD WAY THAT A LOT OF BUSINESSES, YOU KNOW, THAT ARE ESTABLISHED MIGHT NOT HAVE THE CLEANEST FINANCIALS.
SO THEY'RE NOT GONNA BE ABLE TO QUALIFY EASILY AT A BANK FOR A CONVENTIONAL LOAN.
PREVIOUS ITERATIONS OF THE EDA LFS, YOU HAD TO HAVE, UM, LIKE A, A DENIAL LETTER FROM A BANK, BUT DURING THE PANDEMIC THEY REMOVED THAT REQUIREMENT.
UM, AND WHAT YOU DO HAVE TO DO STILL IN THE, IN THE CREDIT MEMO OR THE, YOU KNOW, LOAN REPORT IN YOUR ANALYSIS, YOU HAVE TO SHOW THAT CREDIT IS NOT AVAILABLE ELSEWHERE ON SIMILAR TERMS. SO MOST, YOU KNOW, CONVENTIONAL LENDING OR EVEN FINTECH IS GONNA DO REALLY SHORT TERMS AND THEY'RE GONNA DO A MUCH HIGHER INTEREST RATE, WHICH MAKES THE DEBT COVERAGE RATIO MUCH HARDER TO MEET, RIGHT? FOR A SMALL BUSINESS OWNER FOR THEIR CASH FLOW.
SO BY OFFERING A LOWER TERM, A LOWER INTEREST RATE AND A LONGER TERM, YOU'RE MAKING THAT DEBT COVERAGE RATIO EASIER TO ACCOMPLISH FOR A SMALL BUSINESS.
AND SO THEREFORE THEY CAN AFFORD THE CREDIT ON THOSE, ON THE TERMS YOU'RE OFFERING VERSUS ON THE OTHER TERMS. AND YOU CAN KINDA SAY, YOU KNOW, BASED ON A NUMBER OF FACTORS THAT THE BUSINESS WOULD NOT BE OFFERED THOSE TERMS, YOU KNOW, ON A, ON BY A CONVENTIONAL LENDER.
SO IT'S REALLY JUST AN ANALYSIS THAT WE HAVE TO DO NOW.
SO A LOT OF MORE ESTABLISHED BUSINESSES THAT MIGHT BE LOOKING FOR EXPANSION LOANS, BUT THAT ARE STILL RELATIVELY SMALL, YOU KNOW, MORE IN THE A HUNDRED THOUSAND DOLLARS RANGE, YOU KNOW, BANKS AREN'T REALLY DOING, THEY DON'T DO A LOT OF SMALL LOANS LIKE THAT.
THEY'RE LOOKING AT DOING, IF YOU WANT A HUNDRED K OR LESS, THEY'RE PROBABLY GONNA PUT YOU IN A CREDIT CARD, RIGHT? VERSUS SOME KIND OF A TERM LOAN PRODUCT.
SO THERE'S A NICHE IN THE MARKET THAT WE'RE REALLY TRYING TO FILL WITH THESE SMALLER SORT OF REVOLVING LOAN FUNDS.
AND THAT WAS KIND OF THE POINT OF WHY THE GOVERNMENT KIND OF CREATED THIS RLF PROGRAM AND MAKES GRANTS TO MUNICIPALITIES TO THEN CREATE REVOLVING LOAN FUNDS.
UM, BUT SO WE, OUR, OUR TARGET MARKET IS KIND OF PEOPLE THAT ARE ON THE FRINGE OF BEING ABLE TO QUALIFY, RIGHT? IF THEY'RE SUPER UNQUALIFIED, YOU KNOW, WE'RE GONNA PRO WE'RE GONNA REFER THEM TO SOME MORE TECHNICAL ASSISTANCE BEFORE WE CAN GET THEM INTO A LOAN.
YOU KNOW, THEY REALLY NEED TO DO SOME WORK, UM, ON THEIR END.
SO WE HAVE SEEN SOME VERY, VERY, UM, STARTUP TYPE BUSINESSES THAT, YOU KNOW, WE DO REFER LIKE, YOU KNOW, YOU NEED TO DO X, Y, Z AND COME BACK IN A YEAR
'CAUSE YOU REALLY CAN'T QUALIFY FOR DEBT RIGHT NOW.
YOU KNOW, AND LET'S SEE, WE WANNA SEE FOLKS PUT A LITTLE BIT MORE OF THEIR OWN EQUITY OR SWEAT EQUITY INTO GETTING THE BUSINESS MORE ESTABLISHED AND ACTUALLY HAVE PRESENTING A MORE VIABLE, YOU KNOW, BUSINESS MODEL BEFORE YOU GIVE THEM DEBT.
AND SO THAT'S KIND OF ONE OF THE CRITERIA YOU KIND OF WANNA SEE THAT FOLKS HAVE DONE SOME OF THE VETTING ON THEIR OWN AND THEY GOT TO THIS POINT WHERE THEY REALLY DO THINK THEY CAN CREATE THE REVENUE TO REPAY THE LOAN.
'CAUSE AT THE END OF THE DAY, THAT'S WHAT WE'RE NOW ANALYZING IS, UH, DO WE REALLY THINK THAT THIS BUSINESS CAN REPAY? AND ESPECIALLY IF WE GIVE THEM A LITTLE BIT BETTER RATES IN TERMS THAT HELPS THEM BE ABLE TO REPAY A LITTLE BIT BETTER.
UM, I ASSUME THE LOANS ARE TRANSFERABLE OR NO, THEY'RE NOT TRANSFERABLE.
THAT TAKES CARE OF MY NEXT QUESTION.
UM, BECAUSE I, I WAS GOING TO ASK, DO WE GET APPROVAL OF THE NEW BUYER OF THE BUSINESS OR SO THEY HAVE TO REAPPLY.
MOST LOANS ARE NOT TRANSFERRABLE OR ASSIGNABLE.
IF THEY'RE GONNA SELL THE BUSINESS, THEN NEW BUSINESS OWNER CAN APPLY.
UM, BUT AGAIN, WE HAVE A 20% EQUITY REQUIREMENT THAT WAS IN ONE OF THE UPDATES.
IT WAS KINDA LOOSE BEFORE WE HAD KIND OF NOT REALLY IDENTIFIED IN NUMBER.
UM, AND A LOT OF TIMES WE LIKE TO SEE MORE THAN THAT FOR STARTUPS, BUT WE'RE LOOKING AT EVERY, YOU KNOW, LOAN HAS TO HAVE SOME EQUITY REQUIRED.
WE ARE FLEXIBLE ON WHETHER THAT'S, UM, LIKE RETAINED EARNINGS EQUITY OR EQUITY BUILT UP ALREADY INVESTED PAID IN CAPITAL TYPE EQUITY OR ACTUAL CASH MONEY THAT'S COMING IN FOR THE NEW PROJECT, FOR THE LOAN.
UM, BUT NO THAT, AND THAT'S VERY STANDARD FOR SBA LENDING AS WELL.
IT'S, THEY'RE NOT TRANSFERABLE OR ASSIGNABLE.
UM, IF YOU'RE GONNA SELL THE BUSINESS, UM, KIND OF LIKE LORI AND ERIN, THAT'S, THEY, THEY HAVE A LOT OF GOOD EXAMPLES.
THAT'S WHY WE
IF YOU SELL THE BUSINESS, WE EXPECT YOU TO PAY DOWN THE LOAN.
AND THAT'S A REQUIREMENT IN THE CONDITION OF THE LOAN DOCUMENTS, RIGHT? EITHER AT LEAST IN FULL OR AT LEAST A PERCENTAGE, IF NOT IN FULL.
SO AGAIN, WE WERE HAPPY TO LOOK AT THE NEW OWNER AND SEE AND, AND KINDA USE, YOU KNOW, THE EXISTING BORROWERS FINANCIALS AND HISTORY AND TRACK RECORD TO HELP SUPPORT THE NEW REQUESTS FOR THE NEW, UM, OWNER.
[01:50:01]
UM, BUT IT'S VERY COMMON THAT MOST SMALL BUSINESS LOANS ARE TYPICALLY NOT TRANSFERABLE.UM, AND I HAD A QUESTION ON THE PAGE THAT YOU HAVE WITH THE VOL REVOLVING LOAN FUND ADMINISTRATIVE PLAN.
THE ADDENDUM IS YOU, SO NOW YOU'RE ABLE TO FUND NONPROFITS THROUGH THIS.
AND WHAT I WANTED TO FIND OUT MORE ABOUT IS, IS DO YOU HAVE IT ALLOCATED SO THAT THERE'S A CERTAIN PERCENTAGE THAT CAN ONLY GO TO NON-PROFITS AND MOST OF THE LARGER PERCENTAGE OF IT GOES TO THE SMALL BUSINESSES? THAT'S A REALLY GOOD QUESTION.
WE HAVE THE PLAN AND THE PLAN WAS INCLUDED, UM, IN YOUR PACKET, I BELIEVE, AND IT'S THE VERY LAST ADDENDUM.
I DON'T THINK WE ALLOCATED A PERCENTAGE OF THE TOTAL RLF CAPACITY THAT CAN GO TO NONPROFITS.
UM, BUT WE DID LIMIT THE WHAT TYPE OF FUNDING WE WOULD DO TO NONPROFITS AS DEFINED IN THAT ADDENDUM.
SO WE'RE SAYING LIKE UP TO 50% OF AN EXISTING CONTRACT AMOUNT, THINGS LIKE THAT.
WE'RE LOOKING AT DOING GAP FINANCING.
THAT'S A LOT OF WHAT THESE LOANS ARE AS WELL.
WE KIND OF WANNA SEE EVIDENCE OF OTHER LOANS OR OTHER EQUITY, AND THEN WE'RE JUST FUNDING A PORTION OF THE GAP.
UM, IT'S KIND OF ON A CASE BY CASE IS REALLY THE NONPROFIT THING.
AND THAT'S HOW A LOT OF OTHER LOAN FUNDS I SEE AS WELL, THEY DON'T HAVE IT.
UM, AND IT'S KIND OF ON A CASE BY CASE BASIS, WHETHER OR NOT THEY'LL REQUIRE IT AND, AND OR NOT REQUIRE IT, WHETHER OR NOT THEY'LL CONSIDER THE FUNDING.
AND DO I UNDERSTAND THIS WAY FROM READING THIS, THAT IT, IT IS ONLY FOR NONPROFITS THAT HAVE A CONTRACT WITH THE CITY.
SO IF YOU'RE JUST A NONPROFIT WANTING TO APPLY, YOU CAN'T APPLY FOR THIS.
IT'S JUST IF YOU HAVE A CONTRACT WITH THE CITY OF LONG BEACH, SO THIS IS SPECIFICALLY FOR THE DE FEDERALIZED FUNDS, UM, THE, THE PLAN, IT WOULD, YOU WOULD HAVE TO STILL MEET, LIKE FOR THE REGULAR, THE NEW SEVEN 50 THAT WE GOT IS WHAT SPECIFICALLY THIS PLAN COVERS.
IT TECHNICALLY COVERS THE SEVEN 50, THE NEW MONEY PLUS THE OLD MONEY.
UM, BUT THERE'S A LOT MORE INTERNAL SORT OF DISCRETION THAT YOU HAVE ON THE DE FEDERALIZED FUNDS.
UM, AND SO I THINK ON A CASE BY CASE BASIS WITH THE NEW FUNDS, WE COULD CONSIDER A NONPROFIT THAT'S OUTSIDE OF THE, THE DESCRIPTION INCLUDED IN THE ADDENDUM.
YEAH, I, THE REASON WHY I'M ASKING THE QUESTION IS 'CAUSE YOU KNOW, THIS IS VERY, IT'S, IT'S UNIQUE AND IT'S GREAT THAT SMALL BUSINESSES GET ACCESS TO CITY FUNDS AND A LOAN.
UM, BUT IF IT, IT ALSO MEANS THAT NONPROFITS CAN HAVE THAT IS, AND THERE'S NO ALLOCATION AS FAR AS WHAT PERCENTAGE COULD GO TO NONPROFITS AND SMALL BUSINESSES AT SOME POINT IN TIME.
LIKE SAY YOU HAVE A HOUSING ORGANIZATION THAT'S A NONPROFIT AND THEY, YOU KNOW, WANT TO LOAN A LARGE AMOUNT FROM THE CITY MM-HMM
UM, THAT COULD TAKE UP MOST OF THE FUND, THE, OF THE LOAN.
WELL, THE MAXIMUM LOAN AMOUNT IS 350,000.
THAT'S A PRETTY MAXIMUM AMOUNT THOUGH FOR GO NONPROFITS AS OPPOSED TO SMALL BUSINESSES.
SO MY QUESTION IS MORE ABOUT AROUND, YOU KNOW, HOW DOES THE CITY START TO LOOK AT THIS AS FAR AS IS THIS FUND FUND FOR SMALL BUSINESS OWNERS? IT IS DEFINITELY PRIMARILY FOR SMALL BUSINESS OWNERS.
UM, I JUST THINK THAT, THAT THE, BY NOT HAVING IT BE RESTRICTED AGAINST NONPROFITS, THEY'RE JUST KIND OF GIVING YOURSELF THE OPTION.
UM, AND BECAUSE THE PLANS ARE ONLY UPDATED EVERY FIVE YEARS, YOU KNOW, YOU WANNA BE ABLE TO LIKE LEAVE AS MUCH KIND OF LATITUDE IN THE PLAN AS YOU CAN.
UM, I DON'T KNOW IF, WELL, YOU KNOW, IF THE CITY'S REALLY GOING TO KIND OF BE MARKETING TOWARD NONPROFITS, BUT IT WAS SOMETHING THAT THEY WANTED TO HAVE THE OPTION OPEN.
YEAH, THIS IS SOMETHING WE WANTED TO, UH, INCLUDE AS AN OPTION IN THE EVENT THAT IT WAS, YOU KNOW, NEEDED OR SOMETHING THAT, YOU KNOW, WAS, WAS GOOD TO SUPPORT.
UM, OBVIOUSLY LIKE, UH, ADRIANA SAID, WE WILL BE DOING IT ON A CASE BY CASE BASIS, JUST LIKE WE DO EVERY LOAN APPLICATION, YOU KNOW, LOOK AT IT INDIVIDUALLY AND THEN HOW DOES THAT LOOK AT THE PORTFOLIO, RIGHT? IS IT, IS IT RISKY? IS IT NOT? HOW'S THAT, HOW MIGHT THAT IMPACT IT? UH, SO THAT'S, YOU KNOW, THE WAY, UH, WE PLAN ON DOING IT MOVING FORWARD.
THE SECOND PIECE TOO IS, YOU KNOW, I THINK, UH, SOME OF THE NONPROFITS HERE IN LONG BEACH MADE A A VERY GOOD POINT THAT ALTHOUGH THEY ARE NONPROFIT, THEY'RE STILL JOB CREATORS.
AND, YOU KNOW, THAT IS THE PURPOSE OF THESE DOLLARS IS TO SUPPORT GOOD JOB CREATION HERE, UH, IN THE CITY.
AND THEN, UH, THERE WAS A STUDY ALSO A FEW YEARS AGO, UM, HAPPY TO SHARE THAT, I CAN'T RECALL THE NA NAME OF IT RIGHT NOW, BUT IT'S BASICALLY JUST DO, UH, AN ECONOMIC STUDY ON THE NONPROFITS HERE IN LONG BEACH.
AND THEN THE ECONOMIC IMPACT THAT THEY CONTRIBUTED TO.
AND, UH, YOU KNOW, IT WAS, IT WAS PRETTY SIGNIFICANT.
SO JUST LOOKING AT THAT AND LEARNING ABOUT THAT A LITTLE BIT MORE, KIND OF RAISED THIS QUESTION, IT'S LIKE, HEY, IS IT POSSIBLE IN THAT EVENT THAT IT IS A GOOD DECISION TO PROVIDE A LOAN TO A NONPROFIT HERE IN THE CITY? THERE ARE NO, THERE ARE
[01:55:01]
SMALL BUSINESSES THAT SET THEMSELVES UP AS PUBLIC BENEFIT CORPORATIONS THOUGH, WHICH IS, UH, ANOTHER WAY TO LOOK AT A BUSINESS THAT COULD BE A SOCIAL ENTERPRISE.AND WHAT'S UNIQUE ABOUT THE CITY WORKING WITH SMALL BUSINESSES IS THAT THIS IS ALLOCATED FOR SMALL BUSINESS OWNERS OR BUSINESS OR BUSINESS OWNERS MM-HMM
SO WITHOUT YOU PUTTING A PERCENTAGE IN THERE, IT COULD TURN INTO A FUND FOR NONPROFITS.
SO, UM, YOU KNOW, IT'S JUST, THAT'S MY PERSONAL COMMENT ON IT.
UH, AND BECAUSE OF HAVING WORKED WITH SO MANY SMALL BUSINESS OWNERS, IT'S SO IMPORTANT THAT THEY GET ACCESS MM-HMM
TO, TO CAPITAL ACCESS TO FUNDING.
UH, AND YEAH, I THINK THAT'S A REALLY WELL, UM, WELL TAKEN POINT AND A GREAT COMMENT.
I WOULD SAY THAT IN MY EXPERIENCE, ESPECIALLY WITH THE EDA LFS, IT'S A LITTLE BIT MORE SCRUTINOUS, UH, ON NONPROFITS BECAUSE YOU CAN'T COLLATERALIZE IT IN THE SAME WAY.
YOU CANNOT GET A PERSONAL GUARANTEE, RIGHT? AND SO USUALLY THERE'S A LOT MORE STRINGENT COLLATERAL REQUIREMENTS AND CASHFLOW REQUIREMENTS.
SO IT'S ACTUALLY A LITTLE BIT HARDER FOR NONPROFITS TO QUALIFY BECAUSE YOU STILL HAVE TO FOLLOW ALL THE PRUDENT LENDING STANDARDS, ALL THE DEBT COVERAGE RATIO STUFF, UM, BECOMES, AND ESPECIALLY THE COLLATERAL SIDE BECOMES A LOT MORE IMPORTANT FOR THE NONPROFITS.
AND SO YOU HAVE TO HAVE REAL ESTATE COLLATERAL, LIKE REAL PROPERTY COLLATERAL FOR ALL LOANS THAT ARE ABOVE A HUNDRED THOUSAND.
SO THAT ALSO DOES REQUIRE, UM, CITY COUNCIL APPROVAL.
THAT'S ALWAYS BEEN THE CASE WITH THIS.
SO A HUNDRED OR LESS GOES TO THE LOAN COMMITTEE AND THEY HAVE THE FINAL APPROVAL, UM, ABOVE A HUNDRED THOUSAND WOULD GO TO GO TO CITY COUNCIL.
SO AGAIN, I THINK BY WAY OF THE RULES OF THE FUND AND THE APPROVAL PROCESS, IT DOES MAKE IT MORE SCRUTINOUS ONE ON THE LARGER LOANS, AND TWO DOES REQUIRE THAT REAL PROPERTY COLLATERAL.
SO I, UNLESS A NONPROFIT, YOU KNOW, I JUST, I THINK THERE'S GONNA BE MORE SCRUTINY ON THOSE LARGER LOANS AND PARTICULARLY ON NON-PROFIT DEALS BECAUSE, UM, BECAUSE OF THE COLLATERAL REQUIREMENTS GONNA BE THAT MUCH MORE IMPORTANT.
SO ARE YOU SAYING THAT IF FOR LOANS UNDER A HUNDRED THOUSAND THEN IT WILL, THE NONPROFITS CANNOT APPLY FOR THOSE? NO, THEY COULD STILL APPLY FOR THEM.
UM, BUT I'M, I WOULD SAY THAT THE, THE CASH FLOW AND COLLATERAL REQUIREMENTS WOULD BE, ARE MORE STRINGENT BECAUSE WE'RE NOT ABLE TO LEAN ON A PERSONAL GUARANTEE IN THOSE CASES.
SO THE OTHER PRUDENT LENDING STANDARDS BECOME MORE IMPORTANT.
UM, AND THEN THE OTHER QUESTION I HAD TOO IS, IS THAT, IS ON HERE, IT SAYS TO RECEIVE IN A FILE AND ADOPT, IF APPROPRIATE, ADOPT THIS.
SO THE COMMISSIONERS HAVEN'T HAD A CHANCE TO REVIEW THIS DOCUMENT AND LIKE FOR THE COMMISSIONERS HAVE AN OPPORTUNITY TO REVIEW IT BEFORE THEY, IF WE'RE VOTING ON ADOPTING SOMETHING.
IS THAT SU DO YOU, DO YOU HAVE TIMING CONSIDERATIONS OR CAN WE JUST BRING IT NEXT? YEAH, YEAH.
YOU COULD RECEIVE AND FILE THE ITEM AS IT IS AND THEN LAY OVER BASICALLY, UM, THE, THE PORTION TO ADOPT, UH, THE, THE ADMINISTRATIVE PLAN FOR THE NEXT TIME THAT, UM, YOU GUYS CONVENE.
SO EVERYBODY HAS TIME TO REVIEW IT.
THIRDLY, IF THAT, IF THAT'S WHAT THE COMMISSION WOULD LIKE.
'CAUSE WE WE'RE DARK NEXT MONTH.
I JUST DIDN'T KNOW IF YOU HAVE A TIMELINE FOR THIS.
WE DO HAVE A TIMELINE, BUT WE CAN, UM, WE CAN DISCUSS IT WITH OUR FEDERAL ADVISOR.
THIS IS PART OF RECEIVING THE $750,000 THAT, UH, HAS BEEN AWARDED TO US.
THIS WAS THE LAST PIECE WE HAVE SUBMITTED.
EVERYTHING ELSE, THE ADOPTION OF THIS, UH, UPDATED PLAN IS THE LAST PIECE OF IT IN ORDER FOR US TO BE ABLE TO RECEIVE THE FUNDING.
BUT I LIKE I SAID, I COULD SPEAK WITH OUR FEDERAL ADVISOR TO SEE, AND MAYBE, I'M NOT SURE HOW THAT WOULD WORK SINCE WE ARE DARK IN JULY.
UM, FOR YOU GUYS TO GET AN OPPORTUNITY TO REVIEW IT.
COMMISSIONER SANDOVAL, UM, REGARDING THE ADMINISTRATIVE PLAN, ARE THEY SUBSTANTIAL CHANGES BASED OFF OF LIKE THE OTHER, YOU KNOW, FORMER PLAN, UH, THAT ARE WORTH NOTING? UM, AND IF IT'S MAYBE IT'S KIND OF A ROLLOVER AND IT'S JUST PART OF THE PROCESS, UH, I'D BE CURIOUS TO KNOW THAT.
SO THOSE WERE THE UP, THE, UM, HIGHLIGHTS THAT ANDREA GAVE.
UM, THE, THE, THE MAIN, UH, THE MAIN UPDATES IS WHAT SHE GAVE.
UH, THE, THE PLAN IN IT, IN AND OF ITSELF HAS BEEN, IT'S BASICALLY THE SAME, BUT WE WANTED TO MAKE SURE THAT IT WAS ALIGNED WITH SPECIFIC THINGS LIKE SHE MENTIONED THE SAIDS, THE STRATEGIC VISION 20 20 30, AS WELL AS THE GROW AMERICA,
[02:00:01]
I MEAN THE GROW LONG BEACH INITIATIVE.WE WANTED TO MAKE SURE IT'S ALIGNED AND THOSE, UH, GOALS ARE A PART OF THE, OF THE PLAN, WHICH THEY WEREN'T BEFORE GOT.
AND THE OTHER THING THAT WE DID ADD IN THERE WAS THE FACT THAT THIS PLAN WAS ADOPTED IN 2015 AND THIS BODY WAS, UH, EMPANELED IN 2014.
AND YOU, THIS BODY WAS NOT A PART OF THIS PLAN.
SO WE INCLUDED IT IN THE PLAN AS WELL.
WHICH ARE GREAT ADDITIONS, OR IF THERE'S A DELAY IN THE APPROVAL OF THE PLAN, WOULD THAT IMPACT THE FUNDING? YOU KNOW, THE TIMING OF WHEN YOU RECEIVED THE FUNDING? WOULD THAT PUSH IT BACK INTO A DIFFERENT CYCLE OR CALENDAR YEAR? IT COULD POTENTIAL.
IT COULD POTENTIAL POTENTIALLY, UH, SHIFT THAT TO, YOU KNOW, WHENEVER IT IS APPROVED, AGAIN, I WOULD HAVE TO CHECK WITH OUR FEDERAL ADVISOR.
UH, WE HAVE SUBMITTED EVERYTHING ELSE.
THIS WAS THE LAST PIECE OF IT.
ANY OTHER QUESTIONS OR COMMENTS? OKAY.
SO, UM, WE ARE GOING TO MOVE THAT TO DO, DO WE JUST NEED TO CHANGE WHAT WE'RE VOTING ON SO THAT WE CAN HAVE THE COMMISSIONERS HAVE AN OPPORTUNITY TO REVIEW THE DOCUMENT AND THEN WE COULD APPROVE IT AFTER THEY, THEIR REVIEW? SO, SO CHAIR, THE, THE, THE ITEM IS AGENDIZED AS A RECEIVING FILE.
SO THAT, THAT THE, THAT'S THE, THE MOTION IN WHAT'S ACTUALLY BEEN SECONDED IS JUST THE RECEIVING FILE.
THE IF APPROPRIATE TO ADOPT THAT PART.
COULD BE, COULD BE LATER AS, AS, AS JULIAN SAID.
SO IF WE, THE WAY I READ THE, THE MOTION RIGHT NOW, BECAUSE IT'S NOT APPROPRIATE TO ADOPT IT, THE MOTION IS JUST TO DO THE RECEIVING FILE.
AND THEN WE WILL, WILL YOU ADD IT TO AN AGENDA ITEM THE NEXT, FOR THE AUGUST MEETING, THEN? YEAH, THAT'S WHAT WILL HAPPEN.
AND IF, IF WE HAVE TO, WE CAN AMEND THE MOTION.
WELL, WE'LL BRING IT BACK REALLY WITH THIS, THE PIECE TWO, ADOPT THE PLAN.
YOU BASICALLY HAVE A DISCUSSION ON THAT ONE.
SO THEN AT THE NEXT MEETING, WHENEVER IT HAPPENS, IT, IT, THE MOTION WOULD NOT BE, UM, AGENDIZED AS A RECEIVING FILE.
IT WOULD BE FOR, UH, UH, THE COMMISSION TO ACTUALLY TAKE, TAKE ACTION TO, TO ACTUALLY MAKE THAT DOCUMENT.
SO JUST TO BE CLEAR, 'CAUSE I, I, I NOTE THAT I MOVED ON THIS ONE, UM, THAT SECOND PART OF THIS, WHERE IT SAYS A AFTER, IF APPROPRIATE, ADOPT THE UPDATED PLAN.
UH, IS THAT STILL PART OF THIS MOTION OR HAVE WE REMOVED THAT FROM THE MOTION? YEAH, NO, THE, THE, THE MOTION THAT WE'RE DOING RIGHT NOW IS JUST THE RECEIVE AND FILE.
AND THEN AT THE, THE WAY THAT THIS IS GONNA BE AGENDIZED MM-HMM
THE NEXT MEETING WILL JUST BE TO ADOPT THE UPDATED PLAN.
IS THIS DOCUMENT AVAILABLE TO BE EMAILED TO THE COMMISSIONERS? YES.
AND I WILL MAKE SURE THAT I EMAIL IT TO YOU.
ANY OTHER QUESTIONS OR COMMENTS? OKAY.
THANKS FOR YOUR UNDERSTANDING ON THIS.
YOU KNOW, WE HAVEN'T REVIEWED THIS IN OVER 10 YEARS, RIGHT? SO
SO ANY PUBLIC COMMENTS ON THIS AGENDA ITEM? SEEING NONE.
WHY DON'T WE TAKE A VOTE TO RECEIVE AND FILE THIS AGENDA ITEM, COMMISSIONER PEREZ, TECHNICAL DIFFICULTIES, BUT YES, I THANK YOU.
THANKS FOR THE PRESENTATION AND THANKS FOR ALL OF YOUR WORK ON THE REVOLVING LOAN FUND AND THE SUPPORT YOU GIVE TO ALL THE BUSINESS OWNERS.
THANKS, ANDREA, COLTON, AND CARLA.
WHY DON'T WE MOVE ON TO THE FINAL AGENDA ITEM, ITEM
[5. 26-55223 Recommendation to receive and file Executive Director’s Report. Suggested Action: Approve recommendation. ]
FIVE, RECOMMENDATION TO RECEIVE AND FILE EXECUTIVE DIRECTOR'S REPORT.ALRIGHT, I SEE THAT I'M LOOKING AT THE TIME, SO I SHALL BE DILIGENT.
MAY WE HAVE A MOTION AND A SECONDER PLEASE? CAN WE HAVE A MOTION AND A SECOND? THANK YOU.
MOVE BY COMMISSIONER THOMAS, SECOND BY COMMISSIONER SANDOVAL.
ALRIGHT, SO JUST A FEW UPDATES HERE, JUST GENERALLY, UH, BUSY TIME IN THE CITY AS ALWAYS, BUT IT JUST FEELS EXTRA BUSY, UH, RIGHT NOW.
UM, SO SOME UPDATES HERE, JUST SO YOU GUYS ARE, GUYS ARE, ARE AWARE, UH, WE HAD THE NATIONAL SMALL BUSINESS WEEK WAS MAY 3RD THROUGH MAY 9TH, UH, THE CITY OF LONG BEACH.
WE PARTNERED WITH THE LB CHAMBER TO HOST THE BIGGEST SMALL BUSINESS EXPO ON MAY 14TH AT THE SPORTS BASEMENT.
I DON'T THINK I SAW ANY OF YOU GUYS THERE, BUT, UH, I WAS THERE.
UH, IT WAS LIKE SUPER SUCCESSFUL.
TONS OF, UH, SMALL BUSINESSES AND JUST LIKE REALLY GREAT NETWORKING OPPORTUNITY.
UM, AND, YOU KNOW, WE'RE THERE JUST SUPPORTING, UH, YOU KNOW, OFFERING RESOURCES AS, AS WE
[02:05:01]
DO IN THESE KINDS OF OUTREACH.BUT IT'S JUST REALLY NICE TO SEE, YOU KNOW, SMALL BUSINESSES, UH, CONNECTING WITH ONE ANOTHER TO, YOU KNOW, TO DO THAT BUSINESS TO BUSINESS.
UM, PIECE THERE, UH, ANOTHER UPDATE IS ON, ON, UH, SATURDAY, MAY 30TH.
SO THAT WAS THIS PAST WEEKEND.
WE HAD THE BELMONT PLAZA POOL GROUND BREAKING, UM, THE PORT OF LONG BEACH ALSO SECURED, UH, $283 MILLION FOR THE PIER B RAIL GRANT.
UH, AND THIS, UH, GRANT DOLLARS ARE MEANT FOR A SAFER AND MORE EFFICIENT FLOW OF CARGO TO REACH, YOU KNOW, MORE EFFICIENTLY AND SAFER, UH, IN THE AMERICAN SUPPLY CHAIN.
UM, ALSO ANOTHER REALLY, UM, GREAT UPDATE HERE, UH, FOR THE AIRPORT.
UH, THEY BROKE GROUND ON A $37 MILLION, UH, RENOVATION.
SO THAT'S GONNA DO A WHOLE HOST OF, UM, UH, IMPROVEMENTS IN THE PASSENGER CONCOURSE.
SO IT'S GONNA INCLUDE REMODELING THE 11 GATES THAT WE HAVE, UH, REFRESHING THE RESTROOMS AND OPEN AIR GARDEN SPACE, ADDITIONAL SEATING, ALSO, UH, CHARGING STATIONS FOR THE SEATINGS WHILE PEOPLE ARE WAITING, UH, SERVICE ANIMAL RELIEF AREAS AS WELL.
THE COMPLETION IS, IS EXPECTED, UH, TO BE IN THE SUMMER OF 2027.
UH, ALSO JUST A TIDBIT ON HOW IMPORTANT YOU KNOW, THE AIRPORT IS, ALTHOUGH IT IS A REGIONAL AIRPORT, RIGHT? IT DOES SUPPORT, UH, IT'S $9 BILLION IN ANNUAL ECONOMIC OUTPUT, WHICH IS PRETTY SIGNIFICANT AND SUPPORTS APPROXIMATELY 42,000 JOBS.
SO THE HOPE IS THAT, YOU KNOW, A, YOU KNOW, HIGHER LEVEL OF AMENITIES AND REFRESHMENTS, UH, IN THE AIRPORT WILL FURTHER JUST SUPPORT THE ECONOMIC OUTPUT THAT IT ALREADY SUSTAINS.
UM, IF YOU GUYS HAVE NOT HEARD THE AMPHITHEATER IS ON THE CUSP OF OPENING, YOU KNOW, SO EVERYBODY'S VERY, VERY EXCITED ABOUT THAT.
SO WE'RE HAVING A GRAND OPENING TOMORROW, WHICH IS REALLY MORE OF A PRESS EVENT.
AND THEN ON SATURDAY, UH, OUR VERY OWN SNOOP DOGG AND FRIENDS WILL BE OPENING FOR THE FIRST TIME THERE.
AND THEN LAST, LASTLY, THIS IS A VERY BUSY WEEKEND.
SO THE US CONFERENCE OF MAYORS IS ALSO HAPPENING DURING THIS TIME, UH, STARTING TOMORROW THROUGH THE SEVENTH.
AND THAT'S JUST A QUICK THING ON THAT.
UM, OVER 300 MAYORS OF, YOU KNOW, CITIES ALL THROUGHOUT THE COUNTRY ARE GONNA BE DESCENDING OR ALREADY ARE HERE, UH, IN LONG BEACH.
SO, YOU KNOW, I KNOW THIS IS SOMETHING THAT THE ELECTEDS AND OUR LEADERSHIP HERE IS, ARE VERY EXCITED ABOUT, TO REALLY JUST SHOWCASE THE CITY OF LONG BEACH AND EVERYTHING THAT IT HAS TO OFFER.
YOU KNOW, WE'VE BEEN, UM, VERY DILIGENT WORKING WITH OUR PARTNERS HERE IN DOWNTOWN AND, AND THE SURROUNDING AREAS JUST TO MAKE SURE, YOU KNOW, THAT LONG BEACH PUTS ITS, UH, BEST FOOT FORWARD AND THAT THEY VISIT OUR SMALL BUSINESSES AND, YOU KNOW, MAYBE OPEN UP THEIR WATCH A LITTLE BIT SO WE CAN STIMULATE THAT LOCAL ECONOMY HERE.
SO WE'RE VERY EXCITED TO, TO HOST THIS CONFERENCE.
AND, UM, I'M SURE THAT THE MAYORS AND OTHER VISITORS, UM, YOU KNOW, WILL BE, YOU KNOW, TAKEN ABACK AND REALLY, UM, GLAD TO HAVE HAD THE CONFERENCE HERE AND EXPERIENCE, YOU KNOW, THE CITY OF LONG BEACH AND ALL THAT WE HAVE TO OFFER.
SO, UM, THE LAST THING I WILL, I WILL SAY IS A, A PROGRAMMATIC UPDATE.
UH, WE ALSO DID LAUNCH A LEVEL UP SMALL BUSINESS BOOTCAMP PROGRAM, AND A COUPLE OF YOU GUYS HAVE VISITED THAT THE LAST COUPLE OF YEARS.
UH, YOU KNOW, THANK YOU FOR ALWAYS BEING SUPPORT OF THAT AND SPEAKING WITH THE ENTREPRENEURS.
I THINK THAT MEANS A LOT TO THEM.
SO WE DID THEIR ORIENTATION, UH, LAST WEEK, UH, AND, UM, IT WAS 30 TOTAL BUSINESSES.
20 OF THE BUSINESSES WILL BE RECEIVING A $10,000 GRANT AFTER THE COMPLETION OF THE WORKSHOPS.
JUST AS A REMINDER, THE WORKSHOPS WILL ARE, INCLUDE THINGS LIKE, UH, BUSINESS PLANNING, FINANCING, UH, MARKETING AND BRANDING AS WELL.
AND THEN, UH, THROUGHOUT THESE NEXT FEW MONTHS THROUGH SEPTEMBER, THEY MEET WITH THEIR, UH, MENTOR, WHICH IS TYPICALLY, UH, ONE OF OUR, OUR, UH, INCLUSIVE NAVIGATORS, UH, OR ALSO SBDC OR SCORE ONE OF THEIR, UM, STAFF.
AND THEN THEY MEET WITH THEM THROUGH ALL THESE MONTHS SO THAT THEY'RE REALLY, YOU KNOW, APPLYING WHAT THEY'RE LEARNING THROUGHOUT THESE MONTHS.
AND THEN AT THE END, THEY REALLY HAVE A REALLY GOOD GRASP ON WHAT, YOU KNOW, WHAT THE'RE MISSING IN THEIR BUSINESS STRUCTURE, WHETHER IT'S OPERATION HR, MAYBE THEY NEED TO HIRE A CONSULTANT, RIGHT? SO THEY CAN REALLY, UM, FUNNEL THAT $10,000 GRANT OR PART OF IT TOWARDS THEIR, THEIR, UH, THE GAP ANALYSIS THAT THAT WAS FIGURED OUT.
SO, UM, I'LL KEEP YOU GUYS UPDATED ON THAT AND WE'LL INVITE YOU AGAIN AT THE CULMINATION CEREMONY, UH, IN A FEW MONTHS.
UM, THAT BEING SAID, THAT CONCLUDES MY PRESENTATION AND HAPPY TO ANSWER ANY QUESTIONS.
ANY QUESTIONS, COMMISSIONER NORTICA? YEAH.
UM, JUST A QUICK QUESTION ON WHAT MEASURABLE DATA WE HAVE WITHIN THE CITY ON, LIKE, FOR EXAMPLE, THE, WE'VE, WE'VE GOT THE, THE, THE MAYORS COMING THROUGH OR THE EVENT HAPPENING THIS WEEKEND.
UM, AND LIKE, HOW CAN WE, HOW CAN WE MEASURE THE, OR HOW DO WE MEASURE THE IMPACT OF THOSE THINGS ON A, ON A, IN A, IN A, IN A TIMELY FASHION, IN AN ATTRI, UM, ATTRIBUTABLE FASHION? LIKE, IT SOUNDS LIKE A CHALLENGE, BUT IS THERE A WAY TO DO SO? YEAH, WE'VE ACTUALLY BEEN UNABLE TO DO THAT UNTIL RECENTLY.
I THINK WE CAN DO, I THINK WE CAN DO A, WE, UM, WE RECENTLY HAVE ACCESS TO PLACER AI, WHICH IS, UH, BASICALLY A PLATFORM THAT IS ABLE TO IDENTIFY ECONOMIC
[02:10:01]
ACTIVITY THROUGHOUT.YOU KNOW, YOU CAN KIND OF DO LIKE A GEOFENCING, FOR EXAMPLE, LET'S SAY AROUND THE QUEEN MARY OR AROUND THE, THE CONFERENCE OR WHEREVER IT MAY BE, OR A CORRIDOR, A BUSINESS CORRIDOR.
AND THEN IT'LL TRACK IT THROUGH CELL PHONE, UH, DATA, KIND OF LIKE THE NUMBER OF VISITORS.
AND THEN FROM THERE IT'S ABLE TO GIVE YOU ALSO LIKE A CONSUMER PROFILE THINGS, THINGS LIKE THAT, WHERE THEY'RE COMING FROM, WHERE THEY'RE GOING AFTER.
SO WE JUST GOT ACCESS TO THAT A COUPLE MONTHS AGO.
UH, THE TEAM'S STILL, YOU KNOW, KIND OF JUST GETTING USED TO HOW TO LEVERAGE THE TOOL.
UM, SO FOR EXAMPLE, WHAT WE'RE GONNA BE DOING WITH IT, OR ONE OF THE THINGS THAT WE'RE DEFINITELY GONNA BE DOING IS LOOKING AT OUR BUSINESS IMPROVEMENT DISTRICT AREAS AND THEN JUST MONITORING THEM TO SEE, YOU KNOW, TRACK VISITATION, ET CETERA.
AND SO, IN MY MIND, I ENVISION DOING, YOU CAN ALSO DO THIS FOR SPECIAL EVENTS.
SO THESE, THESE ARE LIKE GONNA BE SOME OF THE FIRST ONES THAT WE'RE GONNA TRY TO DO.
SO I'M HAPPY TO, I'LL BE HAPPY TO REPORT BACK ON KIND OF, YOU KNOW, THE, THE USE OF THAT DATA AND THE TOOL ITSELF TO SEE HOW WE CAN JUST HAVE AN UNDERSTANDING OF THE IMPACT, LIKE YOU'RE SAYING, MAYBE YOU CAN MEASURE YOUR LINKEDIN POST OR YOUR, SO YOUR INSTAGRAM POST AND HOW MANY BUSINESSES GO TO THAT.
THAT'S RIGHT IN THE RESTAURANT.
UM, I THINK THE DIALOGUE WE HAD WITH OUR FRIENDS FROM ALL THOSE WAS REALLY BENEFICIAL.
UM, ANY WAY WE CAN CAPTURE THAT DIALOGUE AND POST IT ON SOCIAL MEDIA OR ANY OTHER OPPORTUNITY TO WORK, GET THE WORD OUT ON THE PROGRAM AND HEAR THEIR TESTIMONY WOULD BE, I THINK, HELPFUL.
SO IT'S A VERY POSITIVE EXPERIENCE.
YEAH, WE WORK REALLY HARD, YOU KNOW, AS THE BIZ CARE TEAM OR MELANIE, OUR RAPID RESPONSE, UH, SPECIAL PRODUCTS OFFICER.
UM, AS YOU KNOW, AS THEY'RE OUTREACHING THE COMMUNITY, UH, WE OFFER, UH, SMALL BUSINESSES IF THEY CONDUCTED, WE CALL IT THE SMALL BUSINESS SPOTLIGHT, SO WE'LL PUT IT ON OUR SOCIAL MEDIA.
UM, AND, BUT I THINK WE SHOULD DEFINITELY REACH OUT TO THEM.
'CAUSE I DON'T KNOW IF THAT THEY'VE BEEN SPOTLIGHTED BEFORE, SO IF NOT, UH, WE'LL SEE IF THEY WANT TO, WHICH I'M SURE THEY WILL DO IT AGAIN.
UM, JILLIAN, LOOKING FORWARD TO THIS, UM, CONFERENCE.
I, IT'S, IT'S A BIG DEAL THE FIRST TIME, UM, THAT THE MAYOR'S BEEN ABLE TO BRING THE US CONFERENCE OF MAYORS TO LONG BEACH.
AND I KNOW WE'RE, UM, GREAT JOB TO, TO THE STAFF AS WELL.
I MEAN, I KNOW IT TAKES A LOT OF WORK TO PUT ON THIS HUGE MAGNITUDE OF EVENTS.
EVERYTHING IS CULMINATING ALL AT THE SAME TIME.
UM, I WILL BE PARTICIPATING AND I LOOK FORWARD TO SEEING THE CONCERT ON SATURDAY.
SO AGAIN, UM, THANK YOU SO MUCH FOR YOUR SUPPORT.
UM, THANK YOU VERY MUCH JULIAN, FOR YOUR REPORT AND ALL THE WORK YOU'RE, YOU AND YOUR TEAM ARE DOING.
SO DO WE HAVE ANY OTHER PUBLIC COMMENT ON THE ITEM? SEEING THAT TO TAKE A VOTE TO RECEIVE AND FILE THE EXECUTIVE DIRECTOR'S REPORT.
COMMISSIONER PEREZ? YES, THANK YOU.
UM, THAT IS OUR LAST AGENDA ITEM.
ARE THERE ANY OTHER ANNOUNCEMENTS THAT PEOPLE WOULD LIKE TO MAKE? CHAIR, CAN WE JUMP OVER? OH, I'M SORRY.
OVER TO PUBLIC COMMENT, PLEASE.
[PUBLIC COMMENT Opportunity to address the Economic Development Commission on non-agenda items. Each speaker is limited to three minutes to make their comments unless extended by the Chair.]
ANY PUBLIC COMMENTS ON NON AGENDA ITEMS IS, I SEE NONE FOR PUBLIC COMMENT.[ANNOUNCEMENTS]
UM, I DON'T KNOW IF IT'S OKAY TO SHARE THIS OR YOU HAVE ANYTHING TO DO WITH IT, BUT, UM, UH, I'VE ACCEPTED MY REAPPOINTMENT AS COMMISSIONER AND THAT WILL BE ANNOUNCED NEXT TUESDAY, I BELIEVE, AT CITY COUNCIL.SO IF ANYONE WANTS TO CELEBRATE ME AND GRAB A BEER AFTERWARDS, LET ME KNOW.
COMMISSIONER SMITH HAVE ALL BEEN REAPPOINTED, DON'T SHOW UP.
SO, SO COMMISSIONER SANDOVAL SOUNDS LIKE HE'S GONNA BE CELEBRATING.
I HAVE, UM, ONE CONGRATULATIONS TOO TO COMMISSIONER HAWKES.
UM, SHE'S A FUL BETTERMENT ANNOUNCED AS A FULBRIGHT SPECIALIST AND SHE CAN SHARE MORE ABOUT THAT EXPERIENCE.
BUT CONGRATULATIONS, SO PROUD OF YOU.
SO I'VE BEEN HONORED TO BE SELECTED BY THE, UM, US DEPARTMENT OF STATE AS A FULBRIGHT SPECIALIST, UM, WHERE I'LL BE SELECTED TO, UM, TEACH, UM, INTERNATIONALLY ABROAD FOR A FEW WEEKS, SHORT PERIOD PERIOD OF TIME TO TALK ABOUT, UM, ECONOMIC DEVELOPMENT AS WELL AS CIVIC ENGAGEMENT.
SO LOOKING FORWARD TO IT, AND I'M HOPING DOES NOT IMPACT MY COMMISSION TIME, BUT IF SO, I WILL WORK WITH THE, UM, MADAM CHAIR.
BUT THANK YOU SO MUCH FOR THE ACKNOWLEDGEMENT.
AND SEEING NO OTHER ANNOUNCEMENTS
[ADJOURNMENT]
TO BE MADE, I THE MEETING IS ADJOURNED.[02:15:01]
EVERYBODY FOR YOUR TIME.AND THEN WE'LL BE BACK IN AUGUST.