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2025-07-23 Sr. Citizen Housing Corporation AgendaAGENDA CITY OF EL SEGUNDO SENIOR CITIZEN HOUSING CORPORATION BOARD 3:30 PM PARK VISTA - PETER & EDNA FREEMAN ROOM 615 E. HOLLY AVENUE EL SEGUNDO, CA 90245 J U LY 23, 2025 MEMBERS OF SENIOR CITIZEN HOUSING CORPORATION BOARD Paul Lanyi, President Timothy Whelan, Vice President Denise Fessenbecker Julia Newman Paula Rotolo The Senior Citizen Housing Corporation Board, with certain statutory exceptions, can only take action upon properly posted and listed agenda items. Any writings or documents given to a majority of the Senior Citizen Housing Corporation Board, regarding any matter on this agenda, that the City received after issuing the agenda packet are available for public inspection in the Park Vista Lobby, Joslyn Center, and the El Segundo Public Library during normal business hours. Such documents may also be posted on the City's website at www.elsegundo.org and additional copies will be available at the meeting. Unless otherwise noted in the agenda, the public can only comment on city -related business that is within the jurisdiction of the Senior Citizen Housing Corporation Board and/or items listed on the agenda during the Public Communications portion of the Meeting. Members of the public may also provide comments electronically by sending an email to the following address before 3:00 P.M. on the day of the meeting: agnesho@elsegundo.org. Please include the meeting date and item number in the subject line. The time limit for comments is five (5) minutes per person. Before speaking to the Senior Citizen Housing Corporation Board, please state: your name, residence, and organization/group you represent, if desired. Please respect the time limits. REASONABLE ACCOMMODATIONS: In compliance with the Americans with Disabilities Act and Government Code Section 54953(g), the City Council has adopted a reasonable accommodation policy to swiftly resolve accommodation requests. The policy can also be found on the City's website at https.11www.else_-gundo.orp/_povemmentldepartmentslcity-clerk. Please contact the City Clerk's Office at (310) 524-2308 to make an accommodation request or to obtain a copy of the policy. 1 Page 1 of 52 CALL TO ORDER/ROLL CALL PUBLIC COMMUNICATION — (Related to City Business Only — 5-minute limit per person, 30-minute limit total) Individuals who have received value of $50 or more to communicate to the Senior Citizen Housing Corporation Board on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the Senior Citizen Housing Corporation Board. Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow action on any item not on the agenda. A. CONSENT 1. Approval of Meeting Minutes Recommendation - 1. Approve the regular Senior Citizen Housing Corporation minutes from June 25, 2025. 2. Alternatively, discuss and take other action related to this item. B. UNFINISHED BUSINESS C. NEW BUSINESS 2. President's Report Recommendation - 1. Receive and file reports regarding correspondence, meetings, and business related to Park Vista. 2. Alternatively, discuss and take other actions related to this item. 3. Financial Statements and LAIF (Local Aaencv Investment Fund Recommendation - Receive and file the status of reports including, but not limited to, statements, invoices, and finances for June 2025. 2. Alternatively, discuss and take other action related to this item. 4. Discussion and Consideration of Amending the Bylaws to Allow for Park Vista Resident to Serve as a Non -voting Board Member Recommendation - 1. Discuss and consider amending the bylaws to allow for one Park Vista resident to serve as a non -voting board member at a time. 2 Page 2 of 52 2. Alternatively, discuss and take other action related to this item. 5. 2024 Financial Audit Scope of Services Recommendation - 1. Review and discuss the proposed audit scope by Hoffman Short, An Accountancy Corporation, for conducting the 2024 financial audit for the El Segundo Senior Citizens Housing Corporation. 2. Alternatively, discuss and take other action related to this item. D. REPORTS - COMMUNITY DEVELOPMENT DEPARTMENT 6. Upcoming Events Recommendation - 1. Receive and file updates about upcoming events at the Joslyn Center and citywide. E. REPORTS — SENIOR CITIZENS HOUSING BOARD A General Report From Individual Board Members F. REPORTS — MANAGEMENT (CADMAN GROUP) ADJOURNMENT POSTED: El Segundo Library, Joslyn Center, Park Vista DATE: July 17, 2025 TIME: 5:00 PM BY: Julie Todd, Ryan Delgado, Neil Cadman 3 Page 3 of 52 MINUTES OF THE MEETING El Segundo Senior Citizen Housing Board Corporation Wednesday, June 25, 2025 Park Vista Senior Housing 615 E. Holly Avenue, El Segundo, CA 90245 CALL TO ORDER: The meeting was called to order at 3:30 p.m. by Board Tim Whelan. ROLL CALL Members Present: Tim Whelan Denise Fessenbecker Paula Rotolo Julia Newman Absent: Paul Lanyi Others: Neil Cadman Michael Allen Venus Wesson Agnes Ho PUBLIC COMMUNICATION. (Suggestion Box Comments) • A resident inquired about the status of funds for the 4th of July party and also asked what happened to the funds that were not used during COVID. Neil responded that the unused funds remained in the operating funds account. Michael Allen clarified that the operating budget resets each year. Neil added that he can propose an increase in the entertainment budget for future planning. • A resident asked about a rumor regarding the possible sale of the building, which was mentioned in the last meeting. Michael clarified and provided an update from the council, reassuring the resident that there are no discussions or plans to sell the facility. • Resident asked two questions: 1) How many bank accounts does PV have? 2) Is the agenda packet provided in advance? Neil stated that there are two bank accounts and that the agenda packet is provided and posted by Cadman staff. A. CONSENT 1. APPROVAL OF MEETING MINUTES Motioned by Paula Rotolo and seconded by Julia Newman to approve the May 28, 2025, Meeting Minutes. The motion passed 4-0. B. UNFINISHED BUSINESS None. C. NEW BUSINESS 2. President's Report (Paul Lanyi) • None. Receive and file: Motion carried 4-0 Page 4 of 52 3. Financial Statements and LAIF (Local Agency Investment Fund). (Neil Cadman) • Tim inquired about the $105 charge for legal services. Neil confirmed that the charge was related to an operational matter involving a tenant that required legal consultation. Receive and file: Motion carried 4-0 4. Review rates: Parking, pet, security deposit (Cadman Group) • Neil confirmed that the pet deposit is $200. Regarding the security deposit, California law allows for a maximum security deposit a landlord can charge is one month's rent. 5. Common Area Artwork Policy (Cadman Group) • Neil provided background information regarding artwork in Park Vista. Michael stated that we can ask the city attorney for guidance to allow artwork. • Denise suggested forming a subcommittee to create a policy. Michael suggested forming the subcommittee today and provide some feedback later. Tim and Julia agreed to be on the subcommittee. 6. Annual Unit Inspection • Annual Inspection for July schedule: Paul will inspect the 1st & 5th floor pending date; Tim will inspect the 3rd floor on July 15th ; Denise will inspect the 2nd floor on July 8th ; Julia will inspect the 4th floor on July 29th D. REPORTS — COMMUNITY DEVELOPMENT DEPARTMENT 7. Upcoming Events • Nothing to report on upcoming events. • Michael informed the board that Paul and Julia's terms had expired. The City Council has extended their terms until the end of August, at which time they will need to reapply. E. REPORTS — SENIOR CITIZENS HOUSING BOARD • None. F. REPORTS — MANAGEMENT (CADMAN GROUP) • Save the date for the annual anniversary party on August 23rd. He confirmed there will be a DJ and that the party is scheduled to start at 5:00 pm. • A recently passed California law (AB 2747) allows tenants to request that on -time rent payments be reported to a credit bureau. • The El Segundo Police Department will hold a cybersecurity training session on June 26, 2025. ADJOURNMENT: 4:18 PM NEXT MEETING: Wednesday, July 23, 2025 Page 5 of 52 0 CADMAN ROUP PARK VISTA Financial Reporting Analysis June 2025 Gross Income: $96,338.21 Gross Expenses: $48,648.60 Expenses for the month were normal except for the following: • Maintenance of $15,578.96. Normal operations with one vacancy prep work and scheduled cleaning of common area carpets. • Only one water bill was received in June. • Bank interest of $8,337.65 reported by the City for June. Net Income: $47,688.61 Total Account Balances: $2,543.752.62 NOTE: THIS DOCUMENT IS A SUMMARYAND ANALYSIS ONLY OF THE MONTHLY FINANCIAL STATEMENTS FOR PARK VISTA. THEYARE NOT PART OF THE ACTUAL FINANCIAL STATEMENTS FOR PARK VISTA. Page 6 of 52 Total number of vacancies for the month: 97.9% occupied on 6/1/2025 96.9% occupied on 6/30/2025 Move -outs: 1 Move -ins: 0 Notices to Vacate: 1 Budget Comparison Notes: Operations: Operations for the month performed $41,400.49 over budget for June, $243.927.27 over budget YTD. This is primarily due to both earthquake and liability/fire insurance budgeted monthly but paid annually. Also, water much less than budget due to the City crediting the facility over the wrong billing structure. Income • Income for the month of June $9,434.37 over budget for June, $56,777.47 over budget YTD. Expenses: • Overall expenses for June $27,795.14 under budget, $163,267.93 under budget YTD. • Maintenance $9,004.37 under budget for June, $52,662.41 under budget YTD. • Electricity over budget for June by $114.90, and $1,748.16 under budget YTD. • Gas under budget by $309.15 for June and $1,748.16 over budget YTD. • Cable Television under budget by $289.31 for June, $2,745.77 under budget YTD. • Water performing $16,014.75 under budget YTD. • Telephone $2,700.14 under budget for June and $14,995.16 under budget YTD. • Elevator service over budget by $4,686.14 YTD due to the final payment of the new flooring. NOTE: THIS DOCUMENT IS A SUMMARYAND ANALYSIS ONLY OF THE MONTHLY FINANCIAL STATEMENTS FOR PARK VISTA. THEYARE NOT PART OF THE ACTUAL FINANCIAL STATEMENTS FOR PARK VISTA. Page 7 of 52 EL SEGUNDO SENIOR CITIZENS HOUSING DEVELOPMENT CORPORATION 350 MAIN STREET, EL SEGUNDO, CA 90245 July 9, 2025 RE: Interest Income from Deposit with the City, per Agreement for Investment of Funds Dear President: The deposit and interest for the quarter/month ending is as follows: Q2-2025 June-25 Original Beginning balance at March 31, 2025 $ 2,269,487.55 Accrued: Interest (Posted quarterly) $ 25,157.97 Add: Deposits Transfer in 6/12/2025 $ 60,000.00 Add: Deposits Less: Withdrawals As of TOTAL IN LAIF/CAMP - G/L# 504-101-0000-0004: 6/30/2025 $ 2,354,645.52 Accrued Interest (posted quarterly by the 15th day following quarter ): Interest Earned April @ 4.450% Actual CAMP for 30 days $ 8,300.73 Interest Earned May @ 4.420% Actual CAMP for 31 days $ 8,519.59 Interest Earned June @ 4.400% Actual CAMP for 30 days $ 8,337.65 Accrued Interest quarter to date $ 25,157.97 Interest earned is based on the interest earnings rate the City of El Segundo received from the California Asset Management Program and the number of days the funds were held by the City during the given period. Per the understanding reached at the September 1997 meeting of the Board of Directors, interest will be credited to the account and compounded on a quarterly basis. Interest shown for each month is for your information only. If you have any questions, please do not hesitate to give me a call. Sincerely, Di � R. Ma*-5ofec Dino R. Marsocci Treasury & Customer Services Manager Cc: Paul Chung, Chief Financial Officer Eva Gettler, Accounting Supervisor Michael Allen, Community Development Director Neil Cadman, Facility Management for Park Vista Eduardo Schonborn, Planning Manager Venus Wesson, Sr. Admin Specialist Agnes Ho, Administrative Analyst PACity Treasurer\MEMOS & SIGNATURES\Senior Housing Reports\2025\SENIOR HOUSING REPORT 2025.x1s Page 8 of 52 Income Statement Cadman Group Properties: Park Vista - 615 E. Holly Avenue El Segundo, CA 90245 Owned By: El Segundo Senior Citizens Housing Corporation As of: Jun 2025 Accounting Basis: Cash Level of Detail: Detail View Include Zero Balance GL Accounts: No Account Name Selected Month % of Selected Month Operating Income & Expense Income RENT Rent Income 87,113.00 Parking Income 1,660.49 Passthrough Charges 0.00 Total RENT 88,773.49 Maintenance Charge 0.00 (Income Account) Prepayment -848.54 NSF Bank Fees 0.00 Collected Application Fee Income -20.00 Laundry Income 94.61 Total Operating Income 87,999.56 Expense Fire Service 2,766.73 Maintenance 15,578.96 Elevator service 1,614.12 Gardening 1,369.49 Management Fees 16,500.00 Pest Control 261.80 Licenses and Permits 0.00 Electricity 2,198.23 Gas 1,357.52 Water 167.52 Telephone/Internet 49.86 Trash 0.00 Cable/Television 5,960.69 Office Supplies 0.00 Uniforms 0.00 Advertising & 823.68 Promotion Legal Expenses 0.00 (Expense account) Bank Service Fees 0.00 Total Operating 48,648.60 Expense Year to Month End % of Year to Month End 98.99 516,657.72 97.82 1.89 9,967.35 1.89 0.00 0.00 0.00 100.88 526,625.07 99.71 0.00 2,089.02 0.40 -0.96 -3,455.01 -0.65 0.00 50.00 0.01 -0.02 0.00 0.00 0.11 2,859.53 0.54 100.00 528,168.61 100.00 3.14 3,531.73 0.67 17.70 94,837.61 17.96 1.83 12,186.14 2.31 1.56 9,179.84 1.74 18.75 99,000.00 18.74 0.30 1,736.54 0.33 0.00 450.00 0.09 2.50 10,751.86 2.04 1.54 11,020.84 2.09 0.19 10,985.25 2.08 0.06 1,504.84 0.28 0.00 335.83 0.06 6.77 34,754.23 6.58 0.00 1,849.71 0.35 0.00 542.00 0.10 0.94 2,299.37 0.44 0.00 405.00 0.08 0.00 24.00 0.00 55.28 295,394.79 55.93 Created on 07/14/2025 PagbWdf 52 Income Statement Account Name NOI - Net Operating Income Other Income & Expense Other Income Interest on Bank Accounts Total Other Income Net Other Income Total Income Total Expense Net Income Selected Month % of Selected Month Year to Month End % of Year to Month End 39,350.96 44.72 232,773.82 44.07 8,337.65 9.47 48,881.89 9.25 8,337.65 9.47 48,881.89 9.25 9.47 9.25 8,337.65 48,881.89 96,337.21 109.47 577,050.50 109.25 48,648.60 55.28 295,394.79 55.93 54.19 53.33 47,688.61 281,655.71 Created on 07/14/2025 PagePTIF& 52 Balance Sheet Properties: Park Vista - 615 E. Holly Avenue El Segundo, CA 90245 As of: 06/30/2025 Accounting Basis: Cash Include Zero Balance GL Accounts: No Account Name ASSETS Cash Cash in Bank Park Vista Reserve Account - LAIF Total Cash Tenant Account Receivable Building Improvements Equipment Furnishings Personal Property Accumulated Depreciation TOTAL ASSETS Balance 189,107.10 2,354,645.52 2,543,752.62 100.00 1,031,873.00 149,355.00 153,863.00 -0.05 -850,766.00 3,028,177.57 LIABILITIES & CAPITAL Liabilities Security Deposit Interest -530.00 Pet Deposit 3,925.00 Key Deposit 1,760.00 Security Deposit 78,466.00 Passthrough Cash Account -946.00 Accounts Payable 30,698.00 Total Liabilities 113,373.00 Capital Owner Contribution 35,996.00 Owner Distribution -35,996.00 Retained Earnings 118,794.95 Prior Years Retained Earnings 12,696.00 Calculated Retained Earnings 281,655.71 Calculated Prior Years Retained Earnings 2,501,657.91 Total Capital 2,914,804.57 TOTAL LIABILITIES & CAPITAL 3,028,177.57 Created on 07/14/2025 PagePlgedf 52 Bill Detail Properties: Park Vista - 615 E. Holly Avenue El Segundo, CA 90245 Payees: All Payment Type: All Created By: All GL Accounts: All Bill Status: All Date Type: Bill Date Date Range: 06/01/2025 to 06/30/2025 Show Reversed Transactions: No Project: All Reference Bill Date Due Date GL Account Property Unit 2120 - Passthrough Cash Account 06/12/2025 06/12/2025 2120 - Park Vista - 309 Passthrough 615 E. Holly Cash Avenue El Account Segundo, CA 90245 6210 - Maintenance 38886 06/02/2025 06/02/2025 6210 - Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 38886 06/02/2025 06/02/2025 6210 - Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 06012025-WO 06/02/2025 06/02/2025 6210 - Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 226089 06/02/2025 06/02/2025 6210 - Park Vista - 214 Maintenance 615 E. Holly Work Order Payee Name Paid Unpaid Check # Paid Date Description Issue Guerrero, 484.00 0.00 5841 06/12/2025 Helen Helen Guerrero, Jack Shafer, Helen Guerrero, Park Vista - 309: Move Out Refund Cadman 50.13 0.00 ACH 06/02/2025 Quill INV Group 44122279 - cleaning supplies Cadman 138.26 0.00 ACH 06/02/2025 Quill INV Group 44066996- kitchen supplies Peraza, 255.00 0.00 33AA-96C0 06/16/2025 Restarted Gabriel system to troubleshoot and repair issue with creating new key fobs in the IDTECK access system at the building. Pitbull 280.00 0.00 3254-9DF0 06/24/2025 Sand, Remodeling stained, and Created on 07/14/2025 PagePf2edf 52 Bill Detail Work Order Reference Bill Date Due Date GL Account Property Unit Payee Name Paid Unpaid Check # Paid Date Description Issue Avenue El & vanished Segundo, CA Maintenance kitchen 90245 cabinet. 9237555501 06/06/2025 06/06/2025 6210 - Park Vista - HD Supply 98.00 0.00 5840 06/10/2025 Janitor Maintenance 615 E. Holly cleaning Avenue El supplies. Segundo, CA 90245 226158 06/06/2025 06/06/2025 6210 - Park Vista - 505 Pitbull 95.00 0.00 3254-9DF0 06/24/2025 Snaked Maintenance 615 E. Holly Remodeling bathtub line. Avenue El & Segundo, CA Maintenance 90245 226157 06/06/2025 06/06/2025 6210 - Park Vista - 501 Pitbull 180.00 0.00 3254-9DF0 06/24/2025 Snaked Maintenance 615 E. Holly Remodeling kitchen main Avenue El & drain line to Segundo, CA Maintenance main line. 90245 226156 06/06/2025 06/06/2025 6210 - Park Vista - 213 Pitbull 180.00 0.00 3254-9DF0 06/24/2025 Snaked Maintenance 615 E. Holly Remodeling bathroom Avenue El & sink to main Segundo, CA Maintenance line. 90245 226155 06/06/2025 06/06/2025 6210 - Park Vista - 325 Pitbull 150.00 0.00 3254-9DF0 06/24/2025 Removed Maintenance 615 E. Holly Remodeling dishwasher, Avenue El & cooking Segundo, CA Maintenance range, and 90245 refrigerator to check for rats/mice/ holes. Reinstalled everything back after checking. 408577 06/06/2025 06/06/2025 6210 - Park Vista - Pitbull 250.00 0.00 3254-9DF0 06/24/2025 Installed new Maintenance 615 E. Holly Remodeling LED lights in Avenue El & upper garage Segundo, CA Maintenance north east 90245 corner. 226087 06/06/2025 06/06/2025 6210 - Park Vista - 319 Pitbull 280.00 0.00 3254-9DF0 06/24/2025 Installed new General Leak Maintenance 615 E. Holly Remodeling carpet Avenue El & padding, Segundo, CA Maintenance reinstalled 90245 carpet and moved furniture back. Created on 07/14/2025 PagePTSedf 52 Bill Detail Reference Bill Date Due Date GL Account Property Unit 48492 06/06/2025 06/06/2025 6210- Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 48508 06/06/2025 06/06/2025 6210 - Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 48515 06/06/2025 06/06/2025 6210 - Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 48519 06/06/2025 06/06/2025 6210 - Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 9237767850 06/10/2025 06/10/2025 6210 - Park Vista - 309 Maintenance 615 E. Holly Avenue El Segundo, CA 90245 9237767851 06/10/2025 06/10/2025 6210 - Park Vista - 309 Maintenance 615 E. Holly Avenue El Segundo, CA 90245 9237767852 06/10/2025 06/10/2025 6210 - Park Vista - 309 Maintenance 615 E. Holly Avenue El Segundo, CA 90245 9237767853 06/10/2025 06/10/2025 6210 - Park Vista - 204 Maintenance 615 E. Holly Avenue El Segundo, CA 90245 9237767854 06/10/2025 06/10/2025 6210 - Park Vista - 204 Maintenance 615 E. Holly Avenue El Segundo, CA Payee Name Southbay Industrial Hardware Southbay Industrial Hardware Southbay Industrial Hardware Southbay Industrial Hardware HD Supply HD Supply HD Supply HD Supply HD Supply Work Order Paid Unpaid Check # Paid Date Description Issue 59.27 0.00 3000000609 06/24/2025 Maintenance supplies; water line hoses, vinyl tubing. 121.22 0.00 3000000609 06/24/2025 Maintenance supplies; rescreens, faucets, electrical box. 49.68 0.00 3000000609 06/24/2025 Maintenance supplies; cleaning brush, hammer bit 7-piece kit, drywall screws. 22.57 0.00 3000000609 06/24/2025 Maintenance supplies; test plugs, rubber caps, brass caps. 1,698.93 0.00 5844 06/26/2025 Vacancy/ Prep - New Appliances 125.10 0.00 5844 06/26/2025 New bathroom vanity fixture 107.32 0.00 5844 06/26/2025 Vacancy/ Prep - New bathroom sink. 125.10 0.00 5844 06/26/2025 New bathroom vanity fixture 147.76 0.00 5844 06/26/2025 Vacancy/ Prep - New ceiling fan Created on 07/14/2025 PageP?4ec3f 52 Bill Detail Reference Bill Date Due Date GL Account Property Unit 90245 9237767855 06/10/2025 06/10/2025 6210- Park Vista - 204 Maintenance 615 E. Holly Avenue El Segundo, CA 90245 9237767856 06/10/2025 06/10/2025 6210 - Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 9237767857 06/10/2025 06/10/2025 6210 - Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 9237767858 06/10/2025 06/10/2025 6210 - Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 226171 06/10/2025 06/10/2025 6210 - Park Vista - 302 Maintenance 615 E. Holly Avenue El Segundo, CA 90245 226167 06/10/2025 06/10/2025 6210 - Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 9238059006 06/20/2025 06/20/2025 6210 - Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 9238059008 06/20/2025 06/20/2025 6210 - Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 06/20/2025 06/20/2025 6210 - Park Vista - 309 Maintenance 615 E. Holly Created on 07/14/2025 Work Order Payee Name Paid Unpaid Check # Paid Date Description Issue HD Supply 107.32 0.00 5844 06/26/2025 Vacancy/ Prep - New bathroom sink. HD Supply 101.84 0.00 5844 06/26/2025 Maintenance Supplies - Carpet shampoo HD Supply 93.02 0.00 5844 06/26/2025 Maintenance Supplies - Bulbs HD Supply 83.61 0.00 5844 06/26/2025 Maintenance Supplies. Pitbull 180.00 0.00 3254-9DF0 06/24/2025 Updated Remodeling kitchen lights & to LED. Maintenance Pitbull 350.00 0.00 3254-9DF0 06/24/2025 Hauled away Remodeling old broken & appliances, Maintenance mattresses, furniture, trash from vacancy preps/former tenants. HD Supply 19.74 0.00 5844 06/26/2025 Maintenance Supplies. HD Supply 89.53 0.00 5844 06/26/2025 Ceiling fixtures for the building. HD Supply 160.05 0.00 5844 06/26/2025 Maintenance Supplies, PagePIWo'f 52 Bill Detail Reference Bill Date Due Date GL Account Property Unit Avenue El Segundo, CA 90245 9238106953 06/20/2025 06/20/2025 6210 - Park Vista - 305 Maintenance 615 E. Holly Avenue El Segundo, CA 90245 38904 06/23/2025 06/23/2025 6210 - Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 38904 06/23/2025 06/23/2025 6210 - Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 38904 06/23/2025 06/23/2025 6210 - Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 06/23/2025 07/23/2025 6210 - Park Vista - Maintenance 615 E. Holly Avenue El Segundo, CA 90245 06/23/2025 07/23/2025 6210 - Park Vista - 204 Maintenance 615 E. Holly Avenue El Segundo, CA 90245 06/23/2025 07/23/2025 6210 - Park Vista - 309 Maintenance 615 E. Holly Avenue El Segundo, CA 90245 Work Order Payee Name Paid Unpaid Check # Paid Date Description Issue #309 HD Supply 86.34 0.00 5844 06/26/2025 New blinds Cadman 86.87 0.00 ACH 06/23/2025 Park Vista Group Quill INV 44255691 cleaning supplies Cadman 133.92 0.00 ACH 06/23/2025 Park Vista Group Quill INV 44272649- cleaning supplies Cadman 19.22 0.00 ACH 06/23/2025 Park Vista Group Quill INV 44272649- cleaning supplies Carpet 0.00 505.60 New linoleum Concepts flooring installed in kitchen. Carpet 0.00 1,443.58 Vacancy prep Concepts 1 b/1 b; installed new carpet and padding in bedroom and living area, new linoleum in kitchen and bath. Carpet 0.00 1,222.60 Vacancy prep Concepts 1 b/1 b; installed new carpet and padding in bedroom and living area, new linoleum in kitchen. Created on 07/14/2025 PagePTIF& 52 Bill Detail Work Order Reference Bill Date Due Date GL Account Property Unit Payee Name Paid Unpaid Check # Paid Date Description Issue 38920 06/24/2025 06/24/2025 6210- Park Vista - Cadman 174.48 0.00 ACH 06/24/2025 Park Vista Maintenance 615 E. Holly Group Quill INV Avenue El 44344581 - Segundo, CA office 90245 supplies 9238287783 06/25/2025 06/25/2025 6210 - Park Vista - HD Supply 0.00 140.15 Maintenance Maintenance 615 E. Holly supplies; Avenue El bathtub drain Segundo, CA stoppers, 90245 mixet temperature shower handles, diverter tub spout, steel wool pads. 45762 06/26/2025 06/26/2025 6210 - Park Vista - Total 475.00 0.00 DOOE-5E90 07/11/2025 Emergency Maintenance 615 E. Holly Maintenance call for leak Avenue El Group, Inc. coming from Segundo, CA unit; cover 90245 and protect area of work, open wall to expose plumbing, repair leak of kitchen drain pipe behind wall. 45761 06/26/2025 06/26/2025 6210 - Park Vista - 105 Total 75.00 0.00 DOOE-5E90 07/11/2025 Supply and Maintenance 615 E. Holly Maintenance install new Avenue El Group, Inc. shower stem. Segundo, CA 90245 45760 06/26/2025 06/26/2025 6210 - Park Vista - 305 Total 75.00 0.00 DOOE-5E90 07/11/2025 Supply and Maintenance 615 E. Holly Maintenance install new Avenue El Group, Inc. shower stem. Segundo, CA 90245 45599 06/26/2025 06/26/2025 6210 - Park Vista - 309 Total 12,137.00 0.00 DOOE-5E90 07/11/2025 Vacancy Maintenance 615 E. Holly Maintenance prep; 1 b/1 b Avenue El Group, Inc. #309 entire Segundo, CA unit prep and 90245 paint cabinets, walls, closets, extra large patio, closets, Created on 07/14/2025 Pagep?7e6f 52 Bill Detail Reference Bill Date Due Date GL Account Property Unit Payee Name Paid Unpaid Check # Paid Date Description Work Order 45600 06/26/2025 06/26/2025 6210 - Park Vista - 204 Total 7,468.00 Maintenance 615 E. Holly Maintenance Avenue El Group, Inc. Segundo, CA 90245 45766 06/27/2025 06/27/2025 6210 - Park Vista - 309 Total 225.00 Maintenance 615 E. Holly Maintenance Avenue El Group, Inc. Segundo, CA 90245 9238424448 06/30/2025 06/30/2025 6210 - Park Vista - HD Supply 0.00 Maintenance 615 E. Holly Avenue El Segundo, CA 90245 9238424449 06/30/2025 06/30/2025 6210 - Park Vista - HD Supply 0.00 Maintenance 615 E. Holly Avenue El Issue replace angle stops in kitchen/ bathroom, replace hood vent above stove, replace kitchen counter surfaces, replace faucets in bathroom and kitchen, 0.00 DOOE-5E90 07/11/2025 Vacancy prep; 1 b/1 b #204 entire unit prep and paint cabinets, walls, closets, patio, closets, replace angle stops in kitchen and bathroom, replace hood vent above stove, minor handyman repairs throughout. 0.00 DOOE-5E90 07/11/2025 Vacancy prep; full unit cleaning 1 b/ 1 b #309 including appliances, blinds, patio. 175.59 Maintenance supplies; garbage disposal with cord #202. 175.59 Maintenance supplies; garbage Created on 07/14/2025 PageP?Iedf 52 Bill Detail Reference Bill Date Due Date GL Account Property Unit Segundo, CA 90245 45765 06/30/2025 06/30/2025 6210 - Park Vista - 204 Maintenance 615 E. Holly Avenue El Segundo, CA 90245 6245 - Elevator service 151401994789 06/20/2025 06/20/2025 6245 - Park Vista - Elevator 615 E. Holly service Avenue El Segundo, CA 90245 6250 - Gardening 6786 06/02/2025 06/02/2025 6250 - Park Vista - Gardening 615 E. Holly Avenue El Segundo, CA 90245 6786 06/02/2025 06/02/2025 6250 - Park Vista - Gardening 615 E. Holly Avenue El Segundo, CA 90245 6270 - Management Fees 06/02/2025 06/02/2025 6270 - Park Vista - Management 615 E. Holly Fees Avenue El Segundo, CA 90245 6315 - Pest Control 438951 06/01/2025 06/01/2025 6315 - Pest Park Vista - Control 615 E. Holly Avenue El Segundo, CA Work Order Payee Name Paid Unpaid Check # Paid Date Description Issue disposal with cord #324. Total 225.00 0.00 DOOE-5E90 07/11/2025 Vacancy Maintenance prep; full unit Group, Inc. cleaning 1 b/ 1 b #204 including blinds, patio, appliances. 26,779.28 3,663.11 Amtech 1,614.12 0.00 0493-CE30 06/20/2025 Service 7/1/ Elevator 25 - 9/30/25 Service Octavio 1,303.49 0.00 FD26-3070 06/05/2025 Monthly Rojas Service - Landscaping June Octavio 66.00 0.00 FD26-3070 06/05/2025 Approved Rojas supplies and Landscaping work for May: (50 lb) lawn fertilizer , (2)risers and (1) swing elbow 1,369.49 0.00 Cadman 16,500.00 0.00 ACH 06/02/2025 Management Group Fees for 06/ 2025 Terminix 86.80 0.00 3000000603 06/02/2025 Monthly Service - June Created on 07/14/2025 PagePTW& 52 Bill Detail Work Order Reference Bill Date Due Date GL Account Property Unit Payee Name Paid Unpaid Check # Paid Date Description Issue 90245 24278 06/25/2025 06/25/2025 6315 - Pest Park Vista - Al & Sons 175.00 0.00 3000000610 06/25/2025 service 5/15/ Control 615 E. Holly Termite and 25-6/19/25 Avenue El Pest Control Segundo, CA Inc. 90245 261.80 0.00 6410 - Electricity 700587779325 06/17/2025 06/17/2025 6410 - Park Vista - 109 Edison 122.45 0.00 3000000607 06/20/2025 service 5/12/ Electricity 615 E. Holly 25-6/10/25 Avenue El Segundo, CA 90245 700394170456 06/17/2025 06/17/2025 6410 - Park Vista - Edison 2,075.78 0.00 3000000608 06/20/2025 service 5/12/ Electricity 615 E. Holly 25-6/10/25 Avenue El Segundo, CA 90245 2,198.23 0.00 6420 - Gas 056 105 06/11/2025 06/11/2025 6420 - Gas Park Vista - SoCalGas 1,357.52 0.00 3000000605 06/11/2025 service 5/2/ 32003 615 E. Holly 25-6/3/25 Avenue El Segundo, CA 90245 6430 - Water 075-18531-000 06/13/2025 06/13/2025 6430 -Water Park Vista - City of El 83.76 0.00 ACH 06/13/2025 service 3/13/ 615 E. Holly Segundo- 25-5/14/25 Avenue El Water Segundo, CA 90245 075-18411-000 06/13/2025 06/13/2025 6430 -Water Park Vista - City of El 83.76 0.00 ACH 06/13/2025 615 E. Holly Segundo - Avenue El Water Segundo, CA 90245 167.52 0.00 6445 - Telephone/Internet 38904 06/23/2025 06/23/2025 6445 - Park Vista - Cadman 49.86 0.00 ACH 06/23/2025 Spectrum Telephone/ 615 E. Holly Group Mobile Internet Avenue El Created on 07/14/2025 PageF26edf 52 Bill Detail Reference Bill Date Due Date GL Account Property Unit Segundo, CA 90245 6455 - Cable/Television 8448 30 006 06/10/2025 06/10/2025 6455 - Cable/ Park Vista - 0255251 Television 615 E. Holly Avenue El Segundo, CA 90245 8448 30 006 06/16/2025 06/16/2025 6455 - Cable/ Park Vista - 0017008 Television 615 E. Holly Avenue El Segundo, CA 90245 8448 30 006 06/27/2025 06/27/2025 6455 - Cable/ Park Vista - 0397046 Television 615 E. Holly Avenue El Segundo, CA 90245 7450 - Advertising & Promotion 38920 06/24/2025 06/24/2025 7450 - Park Vista - Advertising & 615 E. Holly Promotion Avenue El Segundo, CA 90245 Total Payee Name Spectrum Spectrum Spectrum Cadman Group Paid Unpaid Check # Paid Date Description Work Order Issue 32.19 5,697.33 231.17 5,960.69 823.68 0.00 3000000604 06/11/2025 service 5/30/ 25-6/29/25 0.00 3000000606 06/20/2025 service 5/4/ 25-7/3/25 0.00 ACH 06/27/2025 service 6/8/ 25-7/7/25 0.00 0.00 ACH 06/24/2025 Anniversary Party - DJ 57,566.19 3,663.11 Created on 07/14/2025 Pagga2l 1Sf 52 Budget - Comparative Properties: Park Vista - 615 E. Holly Avenue El Segundo, CA 90245 Period Range: Jun 2025 to Jun 2025 Comparison Period Range: Jun 2024 to Jun 2024 Additional Account Types: Asset, Cash, Liability, Capital Accounting Basis: Cash Level of Detail: Detail View Account Name Period Actual Period Budget Period $ Variance Period % Variance Income RENT Rent Income 87,113.00 80,325.00 6,788.00 8.45% Parking Income 1,660.49 1,654.44 6.05 0.37% Total RENT 88,773.49 81,979.44 6,794.05 8.29% Maintenance 0.00 0.00 0.00 0.00% Charge (Income Account) Vacancy 0.00 -4,016.25 4,016.25 100.00% Prepayment -848.54 0.00 -848.54 - Application Fee -20.00 0.00 -20.00 - Income Laundry Income 94.61 602.00 -507.39 -84.28% Total Budgeted 87,999.56 78,565.19 9,434.37 12.01% Operating Income Expense Fire Service 2,766.73 833.33 -1,933.40 -232.01% Fire Extinguisher 0.00 83.33 83.33 100.00% Service Maintenance 15,578.96 24,583.33 9,004.37 36.63% Elevator service 1,614.12 1,250.00 -364.12 -29.13% Gardening 1,369.49 1,750.00 380.51 21.74% Management 16,500.00 16,500.00 0.00 0.00% Fees Pest Control 261.80 500.00 238.20 47.64% Insurance - 0.00 2,708.33 2,708.33 100.00% Property Earthquake 0.00 7,916.67 7,916.67 100.00% Insurance Licenses and 0.00 50.00 50.00 100.00% Created on 07/14/2025 Comparison Comparison Comparison $ Comparison % Actual Budget Variance Variance 79,133.40 78,690.00 443.40 0.56% 1,627.91 1,622.00 5.91 0.36% 80,761.31 80,312.00 449.31 0.56% 831.95 0.00 831.95 - 0.00 -2,916.67 2,916.67 100.00% 1,986.99 0.00 1,986.99 - 60.00 0.00 60.00 - 551.38 860.00 -308.62 -35.89% 84,191.63 78,255.33 5,936.30 7.59% 0.00 833.33 833.33 100.00% 0.00 0.00 0.00 0.00% 27,710.04 17,500.00 -10,210.04 -58.34% 1,569.30 1,250.00 -319.30 -25.54% 1,666.59 1,750.00 83.41 4.77% 16,500.00 16,500.00 0.00 0.00% 175.00 500.00 325.00 65.00% 0.00 0.00 0.00 0.00% 0.00 0.00 0.00 0.00% 0.00 50.00 50.00 100.00% PageF22edf 52 Budget - Comparative Account Name Period Actual Period Budget Period $ Variance Period % Variance Permits Electricity 2,198.23 2,083.33 -114.90 -5.52% Gas 1,357.52 1,666.67 309.15 18.55% Water 167.52 4,500.00 4,332.48 96.28% Telephone/ 49.86 2,750.00 2,700.14 98.19% Internet Cable/Television 5,960.69 6,250.00 289.31 4.63% Office Supplies 0.00 400.00 400.00 100.00% Advertising & 823.68 1,166.67 342.99 29.40% Promotion Entertainment 0.00 416.67 416.67 100.00% Legal Expenses 0.00 300.00 300.00 100.00% (Expense account) Bank Service 0.00 6.25 6.25 100.00% Fees Postage 0.00 20.83 20.83 100.00% Professional Fees 0.00 708.33 708.33 100.00% Total Budgeted 48,648.60 76,443.74 27,795.14 36.36% Operating Expense Total Budgeted 87,999.56 78,565.19 9,434.37 12.01 % Operating Income Total Budgeted 48,648.60 76,443.74 27,795.14 36.36% Operating Expense NOI - Net 39,350.96 2,121.45 37,229.51 1754.91% Operating Income Other Income Interest on Bank 8,337.65 4,166.67 4,170.98 100.10% Accounts Total Budgeted 8,337.65 4,166.67 4,170.98 100.10% Other Income Net Other Income 8,337.65 4,166.67 4,170.98 100.10% Total Budgeted 96,337.21 82,731.86 13,605.35 16.45% Created on 07/14/2025 Comparison Comparison Comparison $ Comparison % Actual Budget Variance Variance 1,886.35 2,350.00 463.65 19.73% 1,049.52 2,000.00 950.48 47.52% 8,879.10 4,500.00 -4,379.10 -97.31 % 199.92 2,750.00 2,550.08 92.73% 5,368.16 6,250.00 881.84 14.11 % 0.00 400.00 400.00 100.00% 0.00 450.00 450.00 100.00% 0.00 0.00 0.00 0.00% -113.05 300.00 413.05 137.68% 0.00 6.25 6.25 100.00% 0.00 20.83 20.83 100.00% 0.00 625.00 625.00 100.00% 64,890.93 58,035.41 -6,855.52 -11.81 % 84,191.63 78,255.33 5,936.30 7.59% 64,890.93 58,035.41 -6,855.52 -11.81 % 19,300.70 20,219.92 -919.22 -4.55% 5,586.54 2,500.00 3,086.54 123.46% 5,586.54 2,500.00 3,086.54 123.46% 5,586.54 2,500.00 3,086.54 123.46% 89,778.17 80,755.33 9,022.84 11.17% PageF2'9e6f 52 Budget - Comparative Account Name Period Actual Period Budget Period $ Variance Period % Variance Income Total Budgeted 48,648.60 76,443.74 27,795.14 36.36% Expense Net Income 47,688.61 6,288.12 41,400.49 658.39% Cash Cash in Bank -21,133.04 0.00 21,133.04 — Park Vista 68,337.65 0.00 -68,337.65 — Reserve Account - LAIF Total Budgeted 47,204.61 0.00 -47,204.61 — Cash Liability Key Deposit 0.00 0.00 0.00 0.00% Security Deposit -484.00 0.00 -484.00 — Passthrough 0.00 0.00 0.00 0.00% Cash Account Total Budgeted -484.00 0.00 -484.00 — Liability Comparison Comparison Comparison $ Comparison % Actual Budget Variance Variance 64,890.93 58,035.41 -6,855.52 -11.81 % 24,887.24 22,719.92 2,167.32 9.54% 20,374.70 0.00 -20,374.70 — 5,586.54 0.00 -5,586.54 — 25,961.24 0.00 -25,961.24 — -20.00 0.00 -20.00 — 1,064.00 0.00 1,064.00 — 30.00 0.00 30.00 — 1,074.00 0.00 1,074.00 — Created on 07/14/2025 PagePNedf 52 SPECIAL MEETING MINUTES OF THE EL SEGUNDO CITY COUNCIL TUESDAY, JUNE 17, 2025 4:00 PM OPEN SESSION — Mayor Pimentel called the meeting to order at 4:05 PM Mayor Pimentel - Present Mayor Pro Tern Baldino - Via Teleconference Council Member Boyles - Present Council Member Giroux - Present Council Member Keldorf - Via Teleconference PUBLIC COMMUNICATIONS — (Related to City Business Only — 5-minute limit per person, 30-minute limit total) None. SPECIAL ORDER OF BUSINESS: Mayor Pimentel announced that Council would be meeting in the executive conference room pursuant to the items listed on the agenda. 1. Conduct Recreation and Parks Commission; Arts and Culture Advisory Committee; Diversity, Equity and Inclusion Committee; Senior Housing Corporation Board; and Library Board of Trustees Interviews Council conducted interviews and appointed the following new members: Recreation and Parks Commission: Dave Lubs* Bob Motta* Arts and Culture Advisory Committee: John Pickhaver* Michael Schepps* Diversity, Equity and Inclusion Committee: Francziska Steagall La Ruth Wright Senior Housing Corporation Board: Council Members voted to extend the terms of current board members Paul Lanyi and Julia Newman through August 2025, to update the Senior Citizen Housing Corporation Board bylaws to include a Park Vista resident as a non -voting member of the board, and to advertise at a later date that applications will be accepted for positions on this board. Page 25 of 52 Library Board of Trustees: Audrey Davis Jim Fenton *Currently serving on this CCB Council will announce the appointments at the 6:00 PM, July 1, 2025 regular City Council meeting. Recess to regular City Council meeting at 6:02 PM Meeting reconvened in the Executive Conference Room at 7:42 PM Adjourned at 8:02 PM Susan Truax, City Clerk Page 26 of 52 Bylaws of the E1 Segundo Senior Citizen Housing Corporation Amended: january 25, 2023July 23, 2025 Page 27 of 52 Section 1. Principal Office. The principal office for the transaction of the activities and affairs of the El Segundo Senior Citizen Housing Corporation (hereinafter "Corporation") is located at the City Hall (350 Main Street) of the City of El Segundo, California, 90245. The Board of Directors (hereinafter 'Board") may change the principal office from one location to another. Any change of location of the principal office shall be noted by the Secretary on these bylaws opposite this Section, or this Section may be amended to state the new location. Section 2. Purposes and Limitations. A. The purposes for which this Corporation is formed are: (1) To establish policies for the operation of and to operate the City of El Segundo Senior Citizen Housing Project; (2) To provide affordable housing opportunities for El Segundo senior Residents; (3) To promote the common good and general welfare of the senior Residents of the City of El Segundo; and, (4) Any other purposes beneficial to the public. B. The limitations of the activities of this Corporation are as follows: (1) No substantial part of the activities of this Corporation shall consist of carrying on propaganda, or otherwise attempting to influence legislation, nor shall this Corporation participate or intervene directly or indirectly, in any political campaign (including publishing or distribution of statements) on behalf of or against any candidate for public office. (2) This Corporation is organized and operated exclusively for social welfare purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code. Notwithstanding any other provision of these articles, the Corporation shall not, except to an insubstantial degree, carry on or engage in any other activities or exercise any powers not permitted to be carried on or exercised by a corporation exempt from federal income tax under Section 501 (c)(3) of the Internal Revenue Code. Page 28 of 52 Section 3. Members. This corporation shall have no members. Section 4. Directors. A. Powers: Subject to the provisions and limitations of the California Public Benefit Corporation Law and any other applicable laws, and subject to any limitations of the Articles of Incorporation, the Operating Agreement between the City of El Segundo and the Corporation and these Bylaws, the Corporation's activities and affairs shall be managed, and all corporate powers shall be exercised, by or under the direction of the Board. The Board staff liaison shall confer with the department head to determine if a request for research by the Board requires extra dedication and staff time that may not be available. B. Specific Powers: Without prejudice to the general powers set forth above, but subject to the same limitations, the Directors shall have the power to: (1) Change the principal office or the principal business office in California from one location to another and designate any place for holding any meeting of the Board. (2) Adopt and use a corporate seal and alter the form of the seal. (3) Borrow money and incur indebtedness on behalf of the Corporation and cause to be executed and delivered for the Corporation's purposes in the Corporate name, promissory notes, bonds, debentures, deeds of trust, mortgages, pledges, hypothecations, and other evidences of debt and securities. C. Number and Qualifications of Directors: (1) Authorized Number. The authorized number of Directors shall be f wsix. (2) All Ddirectors must live in El Segundo. City employees are not eligible to serve as a Director. One Park Vista resident will serve as a non -voting Director at a time. (3) All Directors shall be designated by the City Council of El 3 Page 29 of 52 Segundo. Each Director shall hold office for three years, except that the initial Directors shall hold office for staggered terms of one, two, three or four years, as designated by the City Council. Any Director may repeat consecutive terms if recommended by the remaining Directors and approved by City Council. (4) Director candidates will be reviewed and recommended by the Board President and Vice President, and the subsequent interviews and appointments will be made by the City Council. Notwithstanding the foregoing, the City Council may otherwise appoint Directors. D. Vacancies on Board: (1) Events Causing Vacancy - A vacancy or vacancies on the Board shall exist on the occurrence of the following: (a) the death or resignation of any Director; (b) the declaration by resolution of the Board of a vacancy in the office of a Director who has been declared of unsound mind by order of court, convicted of a felony, or found by final order or judgment of any court to have breached a duty under Article 3 of Chapter 2 of the California Nonprofit Public Benefit Corporation Law; (c) the declaration by resolution of the Board of a vacancy in the office of a Director who has three or more absences in a 12-month period. This provision shall be reviewed annually by the Board at its annual meeting and revised as necessary. (2) Resignations - Except as provided below, any Director may resign by giving written notice to the President or the Secretary. The resignation shall be effective when the notice is given unless it specifies a later time (not to exceed sixty days) for the resignation to become effective. Except on notice to the Attorney General of California, no Director may resign if the Corporation would be left without a duly elected Director or Directors. (3) Filling Vacancies - Within thirty (30) days of the occurrence of a vacancy or vacancies pursuant to Sections 41)(1) or (2) above, the Board shall identify the area(s) of expertise needed by a replacement Director or Directors and shall advise City Council, in writing, of the existence of a vacancy and the criteria to be evaluated in filling the vacancy. The City Council shall actively advertise any vacancy. Utilizing the criteria identified by the Board, City Council shall appoint a replacement Director or Directors to fill the unexpired term or terms within sixty (60) days after receiving notice of the existence of such vacancy or vacancies. City Council shall hold interviews twice a year. 4 Page 30 of 52 (4) No Vacancy on Reduction of Number of Directors -- No reduction of the authorized number of Directors shall have the effect of removing any Director before that Director's term of office expires. E. Removing a Board Member All board and committee members shall serve at the pleasure of the City Council and may be removed at any time without cause, by a majority vote of the City Council. Notwithstanding Section 41)(1) above, a member can be removed after three or more absences in a 12-month period. F. Directors' Meetings: (1) Place of Meetings - Meetings of the Board shall be held at any place that has been designated by resolution of the Board or in the notice of the meeting or, if not so designated, at the principal office of the Corporation. (2) Annual Meeting - Immediately after each annual meeting, the Board shall hold a regular meeting for purposes of organization, election of officers, and transaction of other business. The annual meeting is designated as the July meeting. (3) Other Regular Meetings - Other regular meetings of the Board may be held at such time and place as the Board may fix. Meeting dates and times are posted three days in advance of each meeting. (4) Special Meetings - Authority to Call - Special meetings of the Board for any purpose may be called at any time by the President or Vice President, or the Secretary or any two Directors. (5) Notice - Notice of the time and place of special meetings shall be given to each Director by one of the following methods: (a) by personal delivery of written notice; (b) by first-class mail, postage prepaid return receipt requested; (c) or by telephone, either directly to the Director or to a person at the Director's office or residence who would reasonably be expected to communicate that notice promptly to the Director. All such notices shall be given or shown on the records of the Corporation. Notices sent by first- class mail shall be deposited in the United States mail at least six days before the time set for the meeting. Notices given by 5 Page 31 of 52 personal delivery or telephone shall be delivered or telephoned at least 48 hours before the time set for the meeting. The notice shall state the time of the meeting, and the place if the place is other than the principal office of the Corporation. It need not specify the purpose of the meeting. (6) Quorum - A majority of the authorized number of Directors (or such reduced number, if a vacancy or vacancies exist) shall constitute a quorum for the transaction of business. (7) Waiver of Notice - Notice of a meeting need not be given to any Director who, either before or after the meeting, signs a waiver of notice, a written consent to the holding of the meeting, or an approval of the minutes of the meeting. The waiver of notice or consent need not specify the purpose of the meeting. All such waivers, consents, and approvals shall be filed with the corporate records or made a part of the minutes of the meetings. Notice of a meeting need not be given to any Director who attends the meeting and does not protest, before or of the commencement of the meeting, the lack of notice to him or her. (8) Adjournment - A majority of the Directors present, whether or not a quorum is present, may adjourn any meeting to another time and place. (9) Notice of Adjourned Meeting - Notice of the time and place of holding an adjourned meeting need not be given unless the original meeting is adjourned for more than 24 hours. If the original meeting is adjourned for more than 24 hours, notice of any adjournment to another time and place shall be given, before the time of the adjourned meeting, to the Directors who were not present at the time of the adjournment. (10) Meetings will be conducted based upon the latest edition of Robert's Rules of Order (or similar rules of parliamentary procedure, e.g. Rosenburg's Rules of Order). Where there is a conflict between the parliamentary guidelines and these Bylaws, the Bylaws should have precedence. Failure to strictly follow parliamentary guidelines shall not invalidate an action of the Board. (11) The Board will participate in an annual joint meeting with the City Council and representatives from each of the City's commissions, committees and boards. (12) Workplan Update — The Board President, Vice President or designee will provide the City Council with an update on the [i Page 32 of 52 Board's workplan at a meeting chosen by the City Council. Section 5. Officers. A. Officers of the Corporation: The officers of the Corporation shall consist of the President, Vice President, the Secretary, and the Chief Financial Officer. No two offices may be concurrently held by the same person. Should both the President and Vice President be absent from a meeting, the most senior Director who is neither Secretary nor Chief Financial Officer shall be acting President. B. Election of Officers: The Board of Directors shall elect all officers of the Corporation for terms of one year, or until their successors are elected and qualified. Officers shall be elected at the annual meeting. C. Responsibility of Officers: (1) President - The President shall be the general manager of the Corporation and shall supervise, direct, and control the Corporation's activities, affairs, and officers. The President shall preside at all Board meetings. The President shall be responsible for representing the Corporation, before -other governmental agencies. The President shall have such other powers and duties as the Board or the bylaws may prescribe. (2) Vice President - If the President is absent or disabled, the Vice President shall perform all duties of the President. When so acting, the Vice President shall have all powers of and be subject to all restrictions of the President. The Vice President shall have such other powers and perform such other duties as the Board or the bylaws may prescribe. (3) Secretary - The Secretary shall keep or cause to be kept at the Corporation's principal office or such other place as the Board may direct, a book of minutes of all meetings, proceedings, and actions of the Board, and of committees of the Board. The minutes of meetings shall include the time and place that the meeting was held, whether the meeting was annual, regular, or special, and, if special, how authorized, the notice given, the names of those present at Board and committee meetings. The Secretary shall keep or cause to be kept, at the principal office in California, a copy of the Articles of Incorporation and bylaws, as amended to 7 Page 33 of 52 date. The Secretary shall give, or cause to be given, notice of all meetings of the Board and of committees of the Board required by these bylaws to be given. The Secretary shall keep the Corporate seal in safe custody and shall have such other powers and perform such other duties as the Board or the bylaws may prescribe. (4) Chief Financial Officer - a. Books of Accounts - The Chief Financial Officer shall keep and maintain, or cause to be kept and maintained, adequate and correct books of accounts of the Corporation's properties and transactions. The Chief Financial Officer shall send or cause to be given to the Directors such financial statements and reports as are required to be given by law, by these bylaws, or by the Board. The books of accounts shall be open to inspection by any Director at all reasonable times. b. Deposit and Disbursement of Money and Valuables - The Chief Financial Officer shall deposit, or cause to be deposited all money and other valuables in the name and to the credit of the Corporation with such depositories as the Board may designate; shall disburse the Corporation's funds as the Board may order; shall render to the President and the Board, when requested, an account of all transactions as the Chief Financial Officer and of the financial condition of the Corporation; and shall have such other powers and perform such other duties as the Board or the bylaws may prescribe. Bond - If required by the Board, the Chief Financial Officer shall, at the expense of the Corporation, give the Corporation a bond in the amount and with the surety or sureties specified by the Board for faithful performance of the duties of the office and for restoration to the Corporation of all its books, papers, vouchers, money, and other property of every kind in the possession or under the control of the Chief Financial Officer on his or her death, resignation, retirement, or removal from office. Section 6. Indemnification. A. Right of Indemnification: To the fullest extent permitted by law, this Corporation shall indemnify its Directors, Officers, employees, and other persons described in Section 5238(a) of the California Corporations Code, including persons formerly occupying any such position, against all expenses, judgments, fees, settlements and other amounts actually and reasonably incurred by Page 34 of 52 them in connection with any "proceeding", as that term is used in that Section, and including an action by or in the right of the Corporation, by reason of the fact that the person is or was a person described in that section. "Expenses", as used in this bylaw, shall have the same meaning as in Section 5238(a) of the California Corporation Code. B. Approval of Indemnity: On written request to the Board .by any person seeking indemnification under Section 5238(b) or Section 5238(c) of the California Corporation Code, the Board shall promptly determine under Section 5238(e) of the California Corporations Code whether the applicable standard of conduct set forth in Section 5238(b) or Section 5238(c) has been met and, if so, the Board shall authorize indemnification. If the Board cannot authorize indemnification because the number of Directors who are parties to the proceeding with respect to which indemnification is sought prevents the formation of a quorum of Directors who are not parties to that proceeding, the Board shall promptly call a meeting of City Council. At that meeting, the Council shall determine under Section 5238(e) of the California Corporations Code whether the applicable standard of conduct set forth in Section 5238(b) or Section 5238(c) has been met and, if so, the Council members present at the meeting in person or by proxy shall authorize indemnification. C. Advancement of Expenses: To the fullest extent permitted by law and except as otherwise determined by the Board in a specific instance, expenses incurred by a person seeking indemnification under Section 6 of these bylaws in defending any proceeding covered by those Sections shall be advanced by the Corporation before final disposition of the proceeding. On receipt of the Corporation of an undertaking by or on behalf of that person, the advance will be repaid, unless it is ultimately determined that the person is entitled to be indemnified by the Corporation for those expenses. Section 7. Insurance. The Corporation shall have the right to purchase and maintain insurance to the full extent permitted by law on behalf of its Officers, Directors, employees, and other agents, against any liability asserted against or incurred by any Officer, Director, employee, or agent in such capacity or arising out of the Officer's Director's, employee's, or agent's status as such. Section 8. Amendments. These bylaws may be amended or repealed and new bylaws adopted by the vote of a majority of the members of the Board of Directors. No bylaw shall be amended or repealed and new bylaws shall not be adopted, without the prior Page 35 of 52 approval of the City Council. Section 9. Dissolution. The Corporation may only be dissolved by a vote of the El Segundo City Council. 10 Page 36 of 52 EL SEGUNGO SENIOR CITIZEN CORPORATION dba PARK VISTA July 7, 2025 Hoffman Short An Accountancy Corporation 1037 Park View Drive Covina, CA 91724 This representation letter is provided in connection with your audit of the financial statements of El Segundo Senior Citizen Corporation dba Park Vista, which comprise the statements of financial position as of December 31, 2024 and 2023, and the related statements of activities, and cash flows for the years then ended, and the disclosures (collectively, the "financial statements"), for the purpose of expressing an opinion as to whether the financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States (U.S. GAAP). Certain representations in this letter are described as being limited to matters that are material. Items are considered to be material, regardless of size, if they involve an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. An omission or misstatement that is monetarily small in amount could be considered material as a result of qualitative factors. We confirm, to the best of our knowledge and belief, as of July 7, 2025, the following representations made to you during your audit Financial Statements 1) We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated January 24, 2024, including our responsibility for the preparation and fair presentation of the financial statements in accordance with U.S. GAAP. 2) The financial statements referred to above are fairly presented in conformity with U.S. GAAP. 3) We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 4) We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud. 5) The methods, significant assumptions, and data used in making accounting estimates and their related disclosures are appropriate to achieve recognition, measurement, or disclosure that is reasonable in accordance with U.S. GAAP. 6) Related -party relationships and transactions have been appropriately accounted for and disclosed in accordance with U.S. GAAP. 7) All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. Page 37 of 52 8) The effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements as a whole. A list of the uncorrected misstatements is attached to the representation letter. 9) The effects of all known actual or possible litigation, claims, and assessments have been accounted for and disclosed in accordance with U.S. GAAP. 10) Material concentrations have been appropriately disclosed in accordance with U.S. GAAP. 11) Guarantees, whether written or oral, under which the Organization is contingently liable, have been properly recorded or disclosed in accordance with U.S. GAAP. Information Provided 12) We have provided you with: a) Access to all information, of which we are aware, that is relevant to the preparation and fair presentation of the financial statements, such as records (including information obtained from outside of the general and subsidiary ledgers), documentation, and other matters. b) Additional information that you have requested from us for the purpose of the audit. c) Unrestricted access to persons within the Organization from whom you determined it necessary to obtain audit evidence. d) Minutes of the meetings of the governing board or summaries of actions of recent meetings for which minutes have not yet been prepared. 13) All material transactions have been recorded in the accounting records and are reflected in the financial statements. 14) We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. 15) We have no knowledge of any fraud or suspected fraud that affects the Organization and involves: a) Management, b) Employees who have significant roles in internal control, or c) Others where the fraud could have a material effect on the financial statements. 16) We have no knowledge of any allegations of fraud or suspected fraud affecting the Organization's financial statements communicated by employees, former employees, grantors, regulators, or others. 17) We have no knowledge of any instances of noncompliance or suspected noncompliance with laws and regulations whose effects should be considered when preparing financial statements. 18) We have disclosed to you all known actual or possible litigation, claims, and assessment whose effects should be considered when preparing the financial statements. 19) We have disclosed to you the names of all of the Organization's related parties and all the related -party relationships and transactions, including any side agreements. 20) The Organization has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral. Page 38 of 52 21) We are responsible for compliance with the laws, regulations, and provisions of contracts and grant agreements applicable to us. 22) El Segundo Senior Citizen Corporation dba Park Vista is an exempt organization under Section 501(c)(3) of the Internal Revenue Code. Any activities of which we are aware that would jeopardize the Organization's tax-exempt status, and all activities subject to tax on unrelated business income or excise or other tax, have been disclosed to you. All required filings with tax authorities are up-to-date. 23) We acknowledge our responsibility for presenting the supplementary information in accordance with U.S. GAAP, and we believe the supplementary information, including its form and content, is fairly presented in accordance with U.S. GAAP. The methods of measurement and presentation of the supplementary information have not changed from those used in the prior period, and we have disclosed to you any significant assumptions or interpretations underlying the measurement and presentation of the supplementary information. Signature: Title: Page 39 of 52 EL SEGUNDO SENIOR CITIZEN HOUSING CORPORATION dba PARK VISTA FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION December 31, 2024 and 2023 t .] Page 40 of 52 EL SEGUNDO SENIOR CITIZEN HOUSING CORPORATION dba PARK VISTA TABLE OF CONTENTS Independent Auditors' Report Financial Statements Statements of Financial Position Statements of Activities Statements of Cash Flows Notes to Financial Statements Supplementary Information Schedules of Administrative, Utilities, Maintenance, Taxes, and Insurance Expenses Page 1 -2 3 4 5 6-10 11 Page 41 of 52 :9)0 HOFFMAN • SHORT JOANNE HOFFMAN, CPA, CFE, MBA AN ACCOUNTANCY CORPORATION JIM SHORT, CPA, CITP, CVA 1037 PARK VIEW DRIVE I COVINA, CA 91724 I PH: 626.932.0100 626,915.7666 1 FAX: 626.932.0095 626.331.7607 INDEPENDENT AUDITORS' REPORT To the Board of Directors El Segundo Senior Citizen Housing Corporation dba Park Vista Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of El Segundo Citizen Housing Corporation dba Park Vista, which comprise the statements of financial position as of December 31, 2024 and 2023, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements. In our opinion, the financial statements present fairly, in all material respects, the financial position of El Segundo Senior Citizen Housing Corporation dba Park Vista as of December 31, 2024 and 2023, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of El Segundo Senior Citizen Housing Corporation dba Park Vista and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about El Segundo Senior Citizen Housing Corporation dba Park Vista's ability to continue as a going concern within one year after the date that the financial statements are available to be issued. Page 42 of 52 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of El Segundo Senior Citizen Housing Corporation dba Park Vista's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in ourjudgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about El Segundo Senior Citizen Housing Corporation dba Park Vista's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Supplementary Information Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplementary information shown on page 11 is presented for the purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audits of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. HOFFMAN SHORT AN ACCOUNTANCY CORPORATION Covina, California July 7, 2025 Lead Auditor: Joanne Hoffman, CPA Employer Identification Number: 81-3709413 Page 43 of 52 EL SEGUNDO SENIOR CITIZEN HOUSING CORPORATION STATEMENTS OF FINANCIAL POSITION December 31, 2024 and 2023 ASSETS CURRENT ASSETS Cash and cash equivalents Restricted cash Prepaid expenses Total Current Assets PROPERTY AND EQUIPMENT Building improvements Equipment Furnishings Total Property and Equipment Less: accumulated depreciation Net Property and Equipment Total Assets LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable Prepaid rent Total Current Liabilities TENANT SECURITY DEPOSITS Total Liabilities NET ASSETS Without donor restrictions Undesignated Designated by the City Total Net Assets Total Liabilities and Net Assets See notes to financial statements. 2024 2023 $ 153,216 $ 729,060 2,108,116 1,234,789 56,801 53,269 2,318,133 2,017,118 1,046,041 1,046,041 184,779 184,779 153,863 153,863 1,384,683 1,384,683 1,084,089 1,049,598 300,594 335,085 $ 2,618,727 $ 2,352,203 $ 11,429 $ 11,000 10,953 6,402 22,382 17,402 82,147 74,933 104,529 92,335 406,082 1,025,079 2,108,116 1,234,789 2,514,198 2,259,868 $ 2,618,727 $ 2,352,203 -3- Page 44 of 52 EL SEGUNDO SENIOR CITIZEN HOUSING CORPORATION STATEMENTS OF ACTIVITIES Years Ended December 31, 2024 and 2023 2024 2023 REVENUES Rent $ 999,644 $ 916,305 Parking 19,564 19,122 Interest 73,328 62,299 Other revenue 7,462 29,990 Total Revenue 1,099,998 1,027,716 EXPENSES Administrative 51,041 74,426 Management fees 195,500 186,000 Utilities 148,972 135,518 Operating and maintenance 316,030 246,674 Licenses and permits 470 120 Insurance 99,164 85,045 Depreciation 34,491 36,292 Total Expenses 845,668 764,075 Change in Net Assets Without Donor Restrictions 254,330 263,641 Previous Year Net Assets Without Donor Restrictions 2,259,868 1,996,227 Net Assets Without Donor Restrictions $ 2,514,198 $ 2,259,868 See notes to financial statements. -4- Page 45 of 52 EL SEGUNDO SENIOR CITIZEN HOUSING CORPORATION STATEMENTS OF CASH FLOWS Years Ended December 31, 2024 and 2023 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ 254,330 $ 263,641 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 34,491 36,292 (Increase) decrease in assets: Accounts receivable - 4,000 Prepaid expenses (3,532) (11,506) Security deposits, net 7,214 5,711 Increase (decrease) in liabilities: Accounts payable 429 4,856 Prepaid rent 4,551 (1,982) Net Cash Provided by Operating Activities 297,483 301,012 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of equipment - (17,585) Net Increase in Cash ' 297,483 283,427 Cash, Cash Equivalents, and Restricted Cash at Beginning of Year 1,963,849 1,680,422 Cash, Cash Equivalents, and Restricted Cash at End of Year $ 2,261,332 $ 1,963,849 Cash, Cash Equivalents, and Restricted Cash Comprised of: Cash in bank - checking Restricted cash Total See notes to financial statements. $ 153,216 $ 729,060 2,108,116 1,234,789 $ 2,261,332 $ 1,963,849 -5- Page 46 of 52 EL SEGUNDO SENIOR CITIZEN HOUSING CORPORATION NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 i Welaeun i m,mroP► El Segundo Senior Citizen Housing Corporation dba Park Vista ("the Corporation") is a California nonprofit public benefit corporation formed by the City of El Segundo ("the City") in 1984 to operate a low income senior apartment complex. The apartment complex was built and funded by the City. In 1987, the complex was ready for occupancy and was turned over to the Corporation for operation and management. The Corporation is governed by a seven -member Board of Directors which is appointed by the City Council. All members of the Board of Directors are unpaid volunteers. The apartment complex consists of 97 apartment units, known as Park Vista ("the Project"), located at 615 East Holly Avenue in the City of El Segundo. The Corporation is responsible for the operation of Park Vista pursuant to an Operating Agreement dated May 6, 1986, between the City and the Corporation (see Note 4). The Park Vista apartment complex is owned by the City of El Segundo and is recorded as 'Asset' under the Enterprise Fund of the City. The Corporation's role is to oversee its operation and management of the apartment complex. The facility is managed by an independent property management company (see Note 4). The accompanying financial statements are those of the Corporation and do not represent the financial statements of the City of El Segundo. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial statements are prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America. Cash and Cash Equivalents For purposes of the Statements of Cash Flows, the Project considers all highly liquid debt instruments purchased with an initial maturity of three months or less to be cash equivalents. Accounts Receivable and Allowance for Credit Losses The Project is subject to the provisions of Statement of Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments of the Financial Accounting Standards Board (FASB) Accounting Standards Update ASU No. 2016-13. Under the Standard, the entities are required to measure credit losses of financial assets using the current expected credit loss (CECL) model for estimating an allowance for credit losses. Under the CECL model, the allowance for credit losses is determined by using the accounts receivable aging schedule. The Project believes all receivables will be collected; therefore, no allowance for credit losses has been established for the years ended December 31, 2024 and 2023. Page 47 of 52 EL SEGUNDO SENIOR CITIZEN HOUSING CORPORATION NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Prooerty and Eauloment and Depreciation Property and equipment are stated at cost. Assets are depreciated over their estimated useful lives of 5 to 27.5 years using the straight-line method. Major additions, betterments and improvements are capitalized, while expenditures for maintenance and repairs are charged to expense as incurred. Upon disposal of depreciable property, the appropriate property accounts are reduced by the related costs and accumulated depreciation. Depreciation expense as of December 31, 2024 and 2023, was $34,491 and $36,292, respectively. Impairment of Lona-Lived Assets The Project reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Recoverability is measured by a comparison of the carrying amount to the future net undiscounted cash flow expected to be generated and any estimated proceeds from the eventual disposition. If long-lived assets are considered to be impaired, the impairment to be recognized is measured at the amount by which the carrying amount exceeds the fair value as determined from an appraisal, discounted cash flow analysis, or other valuation technique. No impairment loss was recognized during the years ended December 31, 2024 and 2023. Rental Revenue t 4 Rental revenue is recognized as rents become due. Rental payments received in advance are deferred until earned. All leases between Project and tenants of the property are operating leases. Advertising Costs Advertising and marketing costs are expensed as incurred. Total advertising and marketing costs for the years ended December 31, 2024 and 2023 totaled $9,199 and $10,902, respectively. Income Taxes The Project is exempt from federal and state income taxes under Section 501(c)(3) of the Internal Revenue Code and Section 23701(d) of the California Revenue and Taxation Code, respectively. Accordingly, no provision for income taxes is included in the financial statements. The Project's federal and state income tax returns are subject to possible examination by the taxing authorities until the expiration of the related statutes of limitations on those tax returns. In general, the federal income tax returns have a three-year statute of limitations, and the state income tax returns have a four-year statute of limitations. The Project evaluates all significant tax positions. As of December 31, 2024 and 2023, the Project does not believe that it has taken any positions that would require the recording of any additional tax liability nor does it believe that there are any unrealized tax benefits that would either increase or decrease within the next year. It is the Project's policy to recognize any interest and penalties in the year incurred. There was no interest or penalties incurred in 2024 and 2023. -7- Page 48 of 52 EL SEGUNDO SENIOR CITIZEN HOUSING CORPORATION NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Description of Net Assets The Project is subject to the provisions of Presentation of Financial Statements for Not -for -Profit Entities in accordance with Topic 958. This guidance includes presentation of two classes of net assets and enhances disclosures for board designated amounts, compositions of net assets with donor restrictions and how the restrictions affect the use of resources, qualitative and quantitative information about the liquidity and availability of financial assets to meet general expenditures within one year of the statement of financial position date, and expenses by both their natural and functional classification, including methods used to allocate costs among program and support functions. Net assets are classified based on existence or absence of donor -imposed restrictions as follows: Without Donor Restrictions - Undesignated are resources available to support operations and not subject to donor restrictions. The only limits on the use of net assets without donor restrictions are the broad limits resulting from the nature of the Organization, the environment in which it operates, the purposes specified in the corporate documents and its application for tax-exempt status, and any limits resulting from contractual agreements with creditors and others that are entered into in the course of its operations. Designated by the City are funds held by the City in accordance with the Agreement for Investment of Funds, entered into on May 20,1998, by and between the City and the Corporation. The Corporation has access to the funds within 14 days of providing notice to the City of its desire to withdraw some or all of the funds. Under this Agreement, the City is holding these funds in its investment pool and as of December 31, 2024 and 2023, the balances are $2,108,116 and $1,234,789, respectively. Use of Estimates Management uses estimates and assumptions in preparing financial statements in accordance with U.S. generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure or contingent assets and liabilities and the reported revenues and expenses. Actual results could vary from the estimates that were utilized in preparing the financial statements. 3. RESTRICTED CASH Investment with City Investment with City are funds held by the City in accordance with the Agreement for Investment of Funds, entered into on May 20,1998, by and between the City and the Corporation. The Corporation has access to the funds within 14 days of providing notice to the City of its desire to withdraw some or all of the funds. Under this Agreement, the City is holding these funds in its investment pool. During 2024, the Board approved the transfer of $800,000 from the operating account to the investment account to earn interest. Page 49 of 52 EL SEGUNDO SENIOR CITIZEN HOUSING CORPORATION NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 3. RESTRICTED CASH (Continued) As of December 31, 2024 and 2023 restricted cash consists of the following: Beginning Ending Balance Additions Deductions Balance Investment with City $ 1,234,789 $ 873,327 $ - $ 2,108,116 Total $ 1,234,789 $ 873,327 $ - $ 2,108,116 4. FACILITY OPERATIONS — OPERATING AND MANAGEMENT AGREEMENTS / RELATED PARTY TRANSACTIONS Operating Agreement - On May 6, 1986, the City entered into an Operating Agreement with the Corporation to operate and manage the Park Vista facility for the City. This Agreement provides that the Corporation's relationship with the City is one of an independent contractor and that the City, through its City Council, at all times has ultimate control and authority overthe Park Vista facility. Under the Operating Agreement, the Corporation (through its Board of Directors) is charged with preparing an annual Plan of Operation which covers matters necessary and appropriate to the efficient and effective management of the Park Vista facility. The Plan of Operation includes such items as eligibility standards, rental contracts, rental rates, methods and standards for general maintenance and upkeep of the facility, insurance coverage, ongoing management of the facility through the retention of a professional real estate management firm and a recommended annual budget. The Operating Agreement provides that the Corporation is responsible for hiring, supervising and discharging of employees, contractors and other persons necessary to properly maintain and operate the Park Vista facility. The Corporation also must maintain the Park Vista facility in good order and condition according to standards consistent with the Plan of Operation. The Operating Agreement further requires that any check drawn in an amount equal to or greater than $5,000 shall require the signature of the City Treasurer. Finally, the Agreement provides that it may be terminated by either the City or by the Corporation at any time upon giving at least thirty days prior written notice of such termination. 4. FACILITY OPERATIONS — OPERATING AND MANAGEMENT AGREEMENTS / RELATED PARTY TRANSACTIONS (continued) Property Management Agreement - The Corporation entered into a Management Agreement with Cadman Group, a property management firm. The Agreement provides that Cadman Group will manage, maintain, operate, lease, and rent the Park Vista units for the Corporation. The term of service also provides that Cadman Group will: hire, discharge and supervise all labor required for the operation and maintenance of the property as employees of Cadman Group; make repairs and alterations, decorations of the premises, purchases of supplies, and payments of all bills of the Park Vista facility; assume responsibility for periodic cleaning and maintenance of the facility as provided in the Agreement. The Property Management Agreement provides compensation at $16,250 per month, which includes rent payments and payroll -related expenses. Effective November 1, 2024, the compensation increased to $16,500 per month. Total management fees for the years ended December 31, 2024 and 2023 was $195,500 and $186,000, respectively. Page 50 of 52 EL SEGUNDO SENIOR CITIZEN HOUSING CORPORATION NOTES TO FINANCIAL STATEMENTS December 31, 2024 and 2023 5. LIQUIDITY AND FUNDS AVAILABLE The following reflects the Project's financial assets as of December 31, 2024 and 2023, reduced by amounts not available for general use because of contractual or donor -imposed restrictions within one year of the statement of financial position date. Financial assets available to meet cash needs for general expenditures within one year as December 31, 2024 and 2023: Financial assets Cash and cash equivalents Investment with City Total Financial Assets Less those unavailable for general expenditure within one year, due to: Investment with City not available within the next 12 months Financial Assets Available to Meet Cash Needs for General Expenditures within One Year 6. SUBSEQUENT EVENTS 2024 2023 $ 153,216 $ 729,060 2,108,116 1,234,789 $ 2,261,332 $ 1,963,849 (2,108,116) (1,234,789) $ 153,216 $ 729,060 The Project has evaluated events and transactions occurring subsequent to the Statement of Financial Position date of December 31, 2024 for items that should potentially be recognized or disclosed in these financial statements. The evaluation was conducted through July 7, 2025, the date these financial statements were available to be issued. No such material events or transactions were noted to have occurred. P DIN Page 51 of 52 EL SEGUNDO SENIOR CITIZEN HOUSING CORPORATION SCHEDULES OF ADMINISTRATIVE, UTILITIES, MAINTENANCE, TAXES AND INSURANCE EXPENSES Years Ended December 31, 2024 and 2023 ADMINISTRATIVE EXPENSES Advertising Office expenses Manager rent-free unit Auditing Legal Telephone Miscellaneous administrative Total Administrative MANAGEMENT FEES UTILITIES Electricity Water Gas Cable TV Total Utilities MAINTENANCE EXPENSES Janitorial contract Exterminating contract Ground contract Repairs material Repairs contract Elevator maintenance Decorating contract Decorating supplies Fire protection expense Total Maintenance LICENSES AND PERMITS Miscellaneous INSURANCE EXPENSE Property insurance Earthquake insurance Total Insurance 2024 $ 9,199 6,368 27,000 6,000 812 1,650 12 2023 $ 10,902 4,401 27,000 5,875 890 25,146 212 $ 51,041 $ 74,426 $ 195,500 $ 186,000 $ 22,196 $ 26,277 57,007 43,960 14,605 19,567 55,164 45,714 $ 148,972 $ 135,518 $ 30,977 $ 23,852 3,155 3,270 15,933 20,343 42,639 27,253 94,473 102,733 17,092 14,380 87,346 6,896 22,406 31,189 2,009 16,758 $ 316,030 $ 246,674 $ 470 $ 120 $ 20,433 $ 19,158 78,731 65,887 $ 99,164 $ 85,045 See independent auditors' report. -11- Page 52 of 52