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2024-05-21 CC Agenda Packet - ITEM E23 - Park VistaPark Vista: State of the Union Paul Lanyi for the PV Board May 21, 2024 Background Current State Future Challenges 9...Irverview Options Board Discussions/Decisions City Council To Consider Park Vista Background • Senior living facility owned by the City of El Segundo • Built in 1987 • 97 residential units • Rent for new rentals at 60% of market rate per month 0 1 bedroom = now, $1142 vs $960/month last year o Studio = now $846 vs $705/month last year • On average 4 units turn each year • Approximately 65% of 97 units not paying 50% of market rates Park Vista Background (2) • Rent increases of 1- 2% have been passed annually in the last 15 years (except two years) • Delighted to have Paul Chung City Finance Director and Elias Sasson Director of Public Works working with us to help craft financial projections • Major plumbing projects expected to happen in 2022/2023 pushed out to 2033/2034 (N$1.3M but with 5 % expected increase in costs) Park Vista The Good News? • Financially stable • Came through Covid intact The Bad News? • None Future Challenges • Over $6M worth of projects identified in Replacement Reserves Report developed by the City to be accomplished by 2035 • Forecasts include 2% cost increases, but water running at 5%+ • Park Vista, under current practices and plans and using Senior Housing Fund 504 (controlled by the City) will stay within the City Finance recommended reserves until 2034 and then fall below recommended reserves Financials 1-assumes 2% CPI and $20oK from the City in 2024 Park V14I120-year forecast IS4er1u1o: S200.0004nnual contribution from Gi 2024 2025 2026 2027 2028 MM 2030 2032 MH 2034 2035 2036 2037 2038 UM 204. 2041 2242 IM !venue $923,304 $966,524 51,020,745 $1,074990 S1,123,279 $1,174,635 $1,224,078 $1,283,029 $1,344,312 $1.406.820 51,470.578 S1,S33,212 S3,599,546 S1,660,007 51,729,021 S1,799,416 S1,871,210 $1,944,456 S2,019,159 S2,095,357 $2,173,078 Penises .51114b61 I$!il 1IAI 16164.0SO1 I5 n+f U+9 ISe11 lB71 (SRs1 lU/; :$tl41, 3911 ;5916411I 159SO,BMi (594b,b91i ,57,074; YIlS ISI Ub 1,W141 IS:.f07126) 151 l4b:URr �$1 �10309) IS3l36Ai11 IS11M1Us IS3314 S171 iSSA".0171 Of 44I1,911 1S149S/SR) It S2Jf,000 S229346 $256,694 5230 910 $101 "1 $327 933 $340" $3K 616 $393AU $420 129 $M6,/B6 $470 128 $491i,D20 5S13,899 $S31.712 SS63,004 $S36 71S 5609 780 S632,132 56SM6761 66771120 ipital Expense So $0 (S36,0001 (5397000) IS2240001 (S737,000) ($125,000) IS131,3191 (S380,4361 (S1G 250) IS3.297709) tS1,297,789) (S91b 32GI IS1,045.9701 (5761,387) 15710242) (S588137f 1$250000) ISM o00I (S250,(1001 1$7S0.0oo1 ansfer in From Fund A $o 50 526.250 S.1S.217 So S234. 968 SO S131.139 SO 516.150 S1K.000 510U.000 SlIDD.1100 SIDD.000 So 50 SO SO SO 5o $0 :turn to Equity SIiS= $229.396 5246,9" IS40.81B) 577,992 (5179,199) $215.687 S366A33 $1310S2 $420.129 ($726,303) ($127,6611 ($320.5061 1S412,073) 1$222.6741 IS207-38) ($1A021 S3S9760 SM132 $403761 $427,320 :gmnmg Equity $1,747,000 $2,032,000 $2,261,396 $2.508,331 $2,427.513 $2,505,505 $2,326,306 $2,541,993 52,908,431 52,921483 53,341,612 $2,615,309 $1,887,6ae $1,567,142 $1,135,071 $912,397 S705,159 $703,757 $1,063,537 $1445.669 51,849,431 lding Equity $2.032,000 S2.261386 52,502.331 $Z,427.513 $2,505,505 $2,326,3K $2,541,993 52,908,431 $2,921.483 S3,341,612 SZA15309 $1.987.648 $1,S67,142 S1,135,071 $912,397 $705,159 $703,757 S1,067 S37 $1,445,669 $1 949 431 $2,276 751 ansfer In From Fund 11 $200,000 $200,000 SD SO 50 $0 SO $0 $o SO $0 50 $0 $0 $o `.tl $0 $0 $o $0 SO ty's 504 Fund niGtnl••+e+n $837,266 $1,037,266 $1,011,016 $975,744 $975,744 5740,B76 $740,876 5&D9,737 5609,737 $583,487 $458,487 $358,487 $258497 $158,487 $158,497 $152487 $158487 $158,487 $158,487 5158.487 $158407 4al Funds Available to .rk Vista $2,869,266 $3,298,652 $3,519,347 $3,403,257 $3A81,249 $3,067,10Z $3,292,369 53,510,169 $3,531,220 S3,925,099 $3,073,796 $2,246,135 $1,82S,629 51,293,558 $1,070,884 $863,646 $86Z,244 $1,222,024 $1.604.156 $2,007.918 S2,43S,238 !commended -w- 10%of lerating expense + 2 ars of capital $71,137 5309,714 $509,405 $700,208 $1,043,129 $947,170 $344,650 $603,396 $501,768 53422,708 $2,697,987 $2,320,423 $2,072.668 S1921.967 S2.650,660 S14132000 S966.567 5633469 S6311703 5394160 $399576 - or (under) commended serves 52,798,129 $3,188,939 53.009,942 S2,703.049 $2,439,121 S2,120.012 _ $2,938,211 $2.914.772 $3.029,452 S2,502,390 $375,11M (574,289) ($24), 0401 IS628,4091 (SS79,7751 IS618,353) (5304,322f SSBS 556 S965,454 S1.613,758 52,035.662 venue Assumptions: 2%increase in rents (2022-2042), 2%in parking fee every year, 4 units turning over per year & new tenants assessed at 65%of market rate beginning in 2023 (2023 2042) pense Assumptions: 2%amwal increase for management contract, 3%for utilibes (water at 5%), 5%for all other expenses ipltal Assumptions: Based on the City's independent facility assessment plan of Park Vista; conducted by the City's Public Works Department Financials 1- assumes 2% CPI and $20oK from the City in 2024 M4 M 2 $1,599,546 S1,660,007 $1,729,021 S1,799,416 $1,871,218 Rev$1,533,212 ens (51,063,08a) (51,103,726) (r-1.146,1081 ($1,1�30,309) 1�1,236,411) 451.284,5431 Expenses Exp $470,128 $49S,620 $S13,899 $S38,713 $563,004 $S86,71S Net ($1,c97,1$9;i i591G,3e�;� (S1,045,970.1 (5761,387 {5770.2/.42) (5588,117 Capital Exp-ense Transfer in From Fund $100,000 5100,I)DO 51DD,000 50 $0 50 504 ($727,661) ($320,506) ($432,071) ($22:2,674) ($207,238) ($1,4021 Return to Equity $2,615r309 $1,887,6Q $1,567,142 $1,135,071 $912,3`97 $705,159 ®eRinninp Equity $1,887,648 S1,567,U111 $1,135,071 $922.397 $7+05,159 $703,757 Ending Equity Transfer in From Fund 001 City's 504 Fund I.S%CX00 a-., 20211 Tolal Funds Awa lahle to Park vista Recommended Reserve: 10% of operating expense +2 years of capital aver or j Meijer ) real mme n d ed reserwes $0 $0 $0 $0 $0 $358,487 $258,487 $158,487 $158,497 $158,487 $158,497 $2,,246,135 $1,825,629 $1,293,SSS $1,070,1M $863,646 586Z,244 $2,320,423 $2,072,669 $1,921,967 $1,650,660 $1,482,000 5966.567 1;574,289'! ($247,0410) 95628,4091 ($5793 51 IS618,353) (5104.3221 Financials 2 - assumes 2% CPI and $200K annually from the City Park Vista 20-year Forecast 15cenarlo: $200,000 annual corltrlbutlan from GFI IM 2228 242E 242@ 2922 242fl 242Y LM M 2G22 20ii =A 20}i IQ34 M 2M 2433 249Q 2�91 2492 tQ91 venue $923,304 $956,S24 5l,o20.745 %O77,990 S1,123,219 $1,774,6;5 $7,774,07P $I,7E3.079 $1,344,312 5t 4n6 N70 51,470.573 $1 533,717 $7,i99,546 $1,560,007 $1,729,021 $1,799,416 51,871,71E $1,944,455 S2,019,759 57,09S,357 $7,173.078 lenses .$71131i61 157l7. UBI 1S76a 050) (S>920>71 1$82L18)! 1585: )0T ;5843.l9L K9t6All 1S9Sc.8241 IS986.6911 .SI.024s172: .51061 ONO IS7103. 126) is, 116108. 1Si19030Y, �S123G4111 1i1.2845c31 IS 3346"1 $13870211 'Si441 -9S! 1$.49S 156 t $21s.000 $229,146 S266,694 S210910 $301,992 S322912 $1401617 $366611 S193411 5410129 5 "Allb $470121 $"SAM $s13,199 SSAM $woo4 Ss16715 $609780 $632132 S61,1761 $61 pltal Expense SO 50 !SKO+Os ($397 0001 ($224-0001 157370001 :512S 000) 15131.319? 1$3804361 1$26.2%1 ;S1297,78% IS1297789) 1591G 326) ($L,04 i,9701 ISM 387Y 1$770,2421 i55381171 ;S250000) 15250.0001 6250 COO,' (S250,000) msfcr in From Fund 4 Sc SO S2b.260 S3S171 $0 S2S486d S0 $111.139 S(I $16.2SU S125.000 S100.000 S100.ODO SI000OU 50 SO SO SO So SO SO turn to Equity $26,000 $229,386 szw"4 ($10.p11 $77,992 IS1I9,199) $215487 5366.438 S13,OS2 5420,129 1$726,3031 (S727A61) (S320.6061 15432A711 (S222.674) 15207 2381 4$1 4021 5159 Ml S312 132 S403 161 $427 320 ginning Equity $1,747,000 52,032,000 $2,251,396 $2.508,331 $2,427,513 52.505,505 $2,326,306 52,541,993 $2,908,431 $2,921,483 S3.341.612 $2,615,309 51,887,61E $1,567,142 $1,135,071 $912,397 $705,159 $703.757 $1,063,537 $1,445,669 51,949,431 ding Equity $2,032,000 S2261,336 $2,50"1 $2,427,513 $2,50$,50S $2,326,306 $2541."3 $2,909.431 $2,921,483 $3,341.612 S2,61s,309 51,887,64E S1,S67,142 $1,13S,071 $912,397 $705.159 $703757 SI063S37 $1,445669 $1849431 $2,2767S1 Insfer in Fran'i Fund 1 5200,000 5200,000 S200,000 $200,000 $200,000 SZO0,000 5200,000 520D.GOO $200,000 5200,000 $200,000 5200,000 5200,000 $200,000 S200,000 5200,000 $200,000 5200,000 $200,000 $200,000 5200A00 y's 504 Fund Ap--sl 5837,266 $1,037,266 $1.211,016 $1,375,744 $1,575,744 $1,540, 876 $1,740,876 S1,809,737 $2,009,737 52,183,487 $2,258.487 52.358487 $2.458A87 $2,558,487 S2,758,487 $2,958,487 $3, 158,487 $3,358,487 $3,558,487 53,759,487 53,958p87 lal Funds Arailabtc m dt vista $2,869.266 S3,298,6S2 $3.719,347 $3,803,257 $4,091.249 $3,857,292 54282,869 54,718,16E $4,931,220 S5,525,099 S4,873,796 S4,246,135 $4.025.629 53,693,55E 0.670,884 53.663.646 $3.862,244 54.422,02a $5.001154 55,607.91E S6j3S,231 commended serve: 10%of crating expense 1 2 vs of upltal S71.137 S109714 S509,405 57032DH S1.043,129 S947170 S344,6511 5fi03195 S501.768 514277ng S2,b9),9E) S2,320423 S2.072668 S1921967 S1650.Fi60 S14821100 S966.567 S613461 S638703 $394160 S399576 er or (under) onn-nded ,erves j2,799,179 Sl.I48,9S9 53,209.942 SS.IO1.c49 S3,0mill $2,910011 S3,931,211 S4,114.1/1 Slli S4.101.190 S411S,808 SLIM 111 $11952960 S1.111.5,91 $2020,225 S1,181."I S2,89Sb78 Sl/b3S5b S436SA54 S5,1I1/S1 S5,8115,6W Financials 2 - assumes 2% CPI and $20oK annually from the City Rev-nue Expenses Net Capital Expense Transfer in From Fund 504 Return to Equity Beginning Erjuity Endiing Equity TranSfer in From Fund 001 City's 504 Fun-d 1596DIM n D7211 Total Funds Available to Park Visda Reccmrr.ended Reserve: 1(%of operating expense + 2 yeah of capital over or (under) recommended reserves M S1,533,212, $1,599546 $1,660,007 $1,779,021 $1,799,416 $1,371,219 (S1,063,0841 151,103,726) i;$1,1•t61081 1$1,1.30,30% i$1,236,411J 1S1.284,S031 $410.122 S495,M $513 899 $SM.713 $563,004 $SSti4715 (51.297.7M ;S916,326) ($1,045,9701 (57SS1,387) 15770, 42) ($588,1171 S100.00U S100.000 $100,000 SO S0 $0 (6727.6611 ($•320rS061 1$432,0711 ($222,674) ($207,2381 1$11402) $2,615,309 r$1,887,646 $1,567,142 S1,135,073 5912,397 $705,159 S1,887,648 $x,567,]42 $1,135,071 $912,397 $705,159 $7011757 $200,000 5200,000 $200,000 $20D,000 $200,000 $200,000 S2,358,487 $2,458,487 $2,S58,487 $2,758,487 $2,958,487 $3,158,487 $44,2",135 $4.02509 $3,69%558 $3,670 N4 $3,661,646 $3,26ZZ 4 52.320,423 S2,072,6159 S1.921.967 SIASCI640 S1,482-000 $966,567 S1.915,111 $1.952,460 $1,711,591 S2,02.0,225 $2,181,647 S4895,678 Requests of City Council • Add $200K per year to the 504 Reserves to cover future needs and stay within reserve guidelines established by the City • If not "grow 504" then what options would the City recommend?