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HomeMy Public PortalAbout5) 7C Waiver of Notice forTemporary Library Operations at 9050 Las Tunas Dr.DATE: TO: FROM: MANAGEMENT SERVICES DEPARTMENT MEMORANDUM December 17, 2019 The Honorable City Council Bryan Cook, City Manager \ /1 _ Via: Brian Haworth, Assistant to the City Manager V ~ . By: Tinny Chan, Management Analyst AGENDA ITEM 7.C. SUBJECT: WAIVER OF 60-DA Y NOTIFICATION REQUIREMENT FOR TEMPORARY LIBRARY OPERATIONS AT 9050 LAS TUNAS DR. RECOMMENDATION: The City Council is requested to adopt Resolution No. 19-5440, which waives a 60-day noticing requirement for temporary library operations at 9050 Las Tunas Dr. BACKGROUND /ANALYSIS: Council recently approved a 22-month lease agreement with LA County Library for a temporary satellite location in a City-owned building at 9050 Las Tunas Dr. This arrangement allows continued library services while work is completed on the $3 .9- million Temple City Library Renovation and Expansion Project. During deliberations on the lease agreement, the City Attorney announced a last-minute request by Library officials to remove a non-applicable provision on property taxes. Council ·concurred with the request, conditioned that the language be deleted prior to contract execution . The attached lease agreement reflects this change (Attachment "A"). The City Attorney also announced a request by Library representatives to waive a 60- day notification requirement pursuant to Government Code Section 25351 (Attachment "B"). By law, a county is required to notify the city clerk when it leases an existing building within an incorporated city; it also allows the city council to waive this requirement. As Council and staff have been aware of the lease agreement since October (when the lease was being drafted), Council consented to the request and directed staff to waive the notification requirement via formal resolution. Attachment "C" provides that document for Council approval. City Council December 17, 2019 Page 2 of 2 CITY STRATEGIC GOAL: Actions contained in this report align with the City's strategic goal of good governance. FISCAL IMPACT: None. ATTACHMENTS: A. Final Lease Agreement B. Government Code Section 25351 C. Resolution No. 19-5440 ATTACHMENT A LEASE AGREEMENT This LEASE AGREEMENT ("Lease"), dated as of _____ , 2019, is entered into by and between the CITY OF TEMPLE CITY, a charter law city and municipal corporation ("Landlord" or "City"), and County of Los Angeles, a political subdivision ("Tenant"), who agree as follows: RECITALS A. Landlord is the owner of certain real properties located in the City of Temple City, County of Los Angeles, State of California, commonly known as 9050 East Las Tunas Drive and 9167 La Rosa Drive. B. Landlord wishes to lease a one-story building consisting of approximately 1,056 square feet of floor area, and six parking spaces (three for staff parking, and three additional spaces for use as ADA-compliant portable restrooms) adjacent to the building, to Tenant. A depiction of the areas to be leased at 9050 East Las Tunas Drive ("Premises") is set forth in attached Exhibit "A". C. Landlord further wishes to lease certain space at 9167 La Rosa Drive for certain storage purposes. A depiction of the areas to be leased at 9167 La Rosa Drive ("Storage Area") is set forth in attached Exhibit "B". D. Tenant operates a county library and wishes to lease the Premises and the Storage Area from Landlord for use as a temporary library, storage, and related uses during renovation of the current library location. E. The parties recognize that Tenant's proposed use of the Premises may require a conditional use permit from the City of Temple City, which may contain additional conditions of approval for the use of the Premises. TERMS 1. Use of Premises and Storage Area. The Premises will be used by Tenant to provide county library services to the residents of Temple City and/or the County of Los Angeles. These include uses such as storage and lending of books, media, and other resources, and office use in furtherance of such purposes. Tenant has the nonexclusive right to access and use the Storage Area for the placement of approximately 7 storage containers, subject to the reasonable rules, regulations, and written approval of the Landlord. 2. Term and Termination. a. Term. The term of this Lease commences on December_, 2019 and continues for a period of twenty-two months and, unless earlier terminated, automatically expires on September_, 2021, without the necessity of any notice or other action on Landlord's part. .!2.,_ Extension. This Lease may be extended only upon a written amendment that is approved and executed by the parties. c. Termination. This Lease may be terminated by automatic expiration of the Term, through the default and remedies procedure, or through other termination rights as provided in this Lease. In addition, Landlord may immediately terminate this Lease after written notice to Tenant if Tenant's fails to obtain the conditional use permit from the City of Temple City as referenced in the recitals, before December 16, 2019. 3. Consideration. Tenant agrees to pay total rent, in the amount of $1.00 per month, to Landlord, payable on the first day of the month, or another date mutually agreed between the parties. 4. Utilities. Landlord will pay for water, sewer and trash collection services to the Premises, and Tenant will pay for all other utility services used in connection with the Leased Premises, including, but not limited to, telephone, electric, gas, heating and air conditioning, as may be required in the maintenance, operation and use of the Premises. 5. Maintenance and Janitorial Services. a. As is. The Premises and Storage Area are being leased to Tenant in an existing, "AS IS" condition. It is specifically understood and agreed that, except as expressly provided for in this Lease, Landlord has no obligation and has made no promises to alter, remodel, or otherwise improve the Premises or Storage Area, or any portion thereof. Tenant is familiar with the existing condition of the Premises and Storage Area, and acknowledges that Landlord has made no representation or warranty regarding the condition thereof, or the legality or suitability of the Premises or Storage Areas for Tenant's intended use. Tenant represents that it will repaint the interior of the Premises, and install its own signage, at its own cost. Landlord specifically approves these improvements. Any other improvements will be completed at Tenant's own cost, in compliance with all applicable law, and only after advanced written approval by Landlord. b. Tenant Maintenance. Tenant must maintain the Premises (with the exception the parking lot and the outside landscaped areas at the Premises) and the Storage Area at the Tenant's sole cost and expense, in good, clean and first-class condition and repair, reasonable wear and tear excepted. c. Landlord Maintenance. Landlord will maintain the parking lot, and the landscaped portions of the outside areas of the Premises, in good working condition and repair and in compliance with all laws, ordinances, rules and regulations. 6. Compliance with Laws. Tenant agrees that Tenant and Tenant's use of the leased areas described above will at all times be in strict compliance with all applicable laws, rules and regulations of all governmental authorities having jurisdiction, and Tenant, at its sole cost and expense, agrees to comply with all such laws, rules and regulations. ATTACHMENT A 7. Insurance. Tenant agrees to keep and maintain public liability and property damage insurance respecting the Premises and the Storage Area, naming Landlord as an additional insured, in form and amounts (not less than $1,000,000 per occurrence) and with insurers reasonably satisfactory to Landlord. Tenant also agrees to keep and maintain a policy or policies of fire and extended coverage insurance, with vandalism and malicious mischief endorsements, in the name of Landlord and with loss payable to Landlord, to the extent of the full replacement cost of the improvements located on the Premises and otherwise in form and with insurers reasonably satisfactory to Landlord. Tenant also agrees to keep and maintain worker's compensation insurance coverages for its employees in the minimum amounts required by California law. All such insurance will be primary and not contributing with any insurance which Landlord may maintain, and the insurer providing such insurance must agree that such insurance will not be changed or cancelled except upon at least thirty (30) days prior written notice to Landlord. Tenant waives any and all rights of recovery against Landlord and its officials, officers, agents and employees on account of loss or damage occasioned to Tenant or its property or the property of others under its control, to the extent that such loss or damage is insured against under the fire and extended coverage policy required to be kept and maintained by Tenant under this Lease; and Tenant shall cause each policy required to be kept and maintained by it under this Lease to provide that the insurer waives all right of recovery by way of subrogation against Landlord in connection with any damage covered by such policy. Tenant will provide Landlord with copies of the policies of such insurance or certificates evidencing such insurance upon execution of this Lease and from time to time thereafter as reasonably requested by Landlord. Tenant, at its sole option, may satisfy all or any part of this insurance requirement through use of a program of self insurance (self- funding of its liabilities). 8. Indemnification. In addition to, and without limiting, Tenant's other obligations of indemnity under this Lease, Tenant agrees to indemnify, protect, defend (by counsel reasonably satisfactory to Landlord) and hold Landlord and its officials, officers, agents and employees, and each of them, harmless from and against all claims, losses, liabilities, actions, judgments, costs and expenses (including reasonable attorneys' fees and costs) which they, or any of them, may suffer or incur arising from or relating to (a) Tenant's use of the Premises/Storage Area, (b) any negligence, act or omission of Tenant, its agents, employees, contractors, guests, invitees, or users who are directly or indirectly given access to the Premises/Storage Area by the Tenant, in or about the Premises/Storage Area, or (c) any default by Tenant under this Lease. 9. Sublease or Assignment. Tenant may not sublease or assign this Lease or sublet or assign the rights to all or any part of the Premises/Storage Area nor permit the occupancy thereof by any other person or entity without the express written consent of Landlord, which consent may be withheld in Landlord's sole discretion. 10. Default. The occurrence of any one or more of the following shall constitute a default by Tenant: a. Vacation or abandonment of the Premises/Storage Area by Tenant. b. Failure by Tenant to make payment of rent or any other payments required to be made by Tenant hereunder as and when due. ATTACHMENT A c. Failure by Tenant to keep and maintain any of the insurance required to be kept and maintained by Tenant under this Lease. d. Failure by Tenant to observe or perform any of the covenants or provisions of this Lease, when such failure continues for a period of 30 days after written notice of such failure is given by Landlord to Tenant; provided, that if the nature of Tenant's failure is such that more than 30 days are reasonably required for its cure, then Tenant will not be deemed to be in default if Tenant commences such cure within said 30 day period and thereafter diligently prosecutes such cure to completion. e. Failure by Tenant to comply with any conditions or requirements outlined under any condition use permit applicable to Tenant's use of the Premises/Storage Area. 11. Remedies. If Tenant is in default, then, in addition to all other rights and remedies which Landlord may have at law or in equity, Landlord has the following rights and remedies which are not exclusive but are cumulative: a. To the extent permitted by law, Landlord can, with or without terminating this Lease, reenter the Premises/Storage Area and remove all property and persons therefrom, and any such property may be removed and stored in a public warehouse or elsewhere at the cost and for the account of Tenant. If Landlord elects to reenter or shall take possession of the Premises pursuant to legal proceedings or pursuant to any notice provided by law, and if Landlord has not elected to terminate this Lease, Landlord may either recover all rent as it becomes due under this Lease or relet the Premises or any part or parts thereof for such term or terms and upon such provisions as Landlord may deem advisable and will have the right to make repairs to and alterations of the Premises. No reentry or taking possession of the Premises by Landlord is to be construed as an election to terminate this Lease unless a written notice of such intention is given to Tenant by Landlord. Notwithstanding any reletling without termination by Landlord because of Tenant's default, Landlord may at any time after such reletting elect to terminate this Lease because of such default. If Landlord elects to relet the Premises without terminating this Lease, then rent received by Landlord therefrom will be applied as follows: i. rent due from Tenant; First, to any indebtedness from Tenant to Landlord other than ii. Second, to all costs and expenses, including, without limitation, for maintenance, repairs or alterations, incurred by Landlord in connection with reletting the Premises; and iii. Third, to the payment of rent due and unpaid under this Lease and the residue, if any, will be held by Landlord and applied in payment of future rent as the same may become due and payable under this Lease and to any damages and other amounts which Landlord is otherwise entitled to under this Lease. Should that portion of such rent received from such reletting during any month, which is applied to the payment of rent hereunder, be less than the rent payable hereunder during that month by Tenant, then Tenant agrees to pay such deficiency to Landlord immediately upon demand. In no event will Tenant be entitled to any excess rent received by Landlord from such reletting. ATTACHMENT A b. Notwithstanding any prov1s1on to the contrary, Landlord can also terminate Tenant's right to possession of the Premises at any time. No act by Landlord other than giving 30 days' written notice to Tenant will be needed before terminating this Lease under this subsection. c. Acts of maintenance, efforts to relet the Premises, or the appointment of a receiver on Landlord's initiative to protect Landlord's interest under this Lease shall not constitute a termination of Tenant's right to possession. On termination, Landlord has the right to recover from Tenant: i. The worth, at the time of the award, of the unpaid rent that had been earned at the time of termination of this Lease; ii. The worth, at the time of the award, of the amount by which the unpaid rent that would have been earned after the date of termination of this Lease until the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided; iii. The worth, at the time of the award, of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided; and iv. Any other amount, and court costs, necessary to compensate Landlord for all detriment proximately caused by Tenant's default. v. "The worth, at the time of the award," as used in (i) and (ii) of this subsection (b ), is to be computed by allowing interest at the maximum rate an individual is permitted by law to charge. "The worth, at the time of the award," as referred to in (iii) of this subsection (b ), is to be computed by discounting the amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus 1 %. d. Landlord can have a receiver appointed to collect rent and conduct Tenant's business. Neither the filing of a petition for the appointment of a receiver nor the appointment itself shall constitute an election by Landlord to terminate this Lease. e. Without waiving the default, Landlord can, at its sole option, pay such sums and/or take such actions as are necessary in Landlord's reasonable judgment in order to cure any default, and all sums expended or incurred by Landlord in connection therewith, together with interest thereon at the maximum rate permitted by law, shall be paid by Tenant to Landlord immediately on demand. 12. Landlord Entry. Landlord and its authorized representatives shall have the right upon two business days' written notice to Tenant to enter all portions of the Premises for any of the following purposes: (a) to determine whether the Premises are in good condition and whether Tenant is complying with its obligations under this Lease; (b) to inspect the Premises; (c) in connection with Landlord's design and construction planning respecting Landlord's future use of the Premises; and (d) to post notices of nonresponsibility. Notwithstanding the foregoing to the contrary, Landlord and its authorized representatives shall have the right to enter the Premises at any time, and ATTACHMENT A without notice to Tenant, where an emergency situation necessitates such entry. No exercise by Landlord of its rights under this Section shall entitle Tenant to any damages for any injury or inconvenience occasioned thereby or to any abatement of rent or other amounts payable under this Lease. 13. Surrender of Premises/Storage Area. Upon the expiration or other termination of the term of this Lease, Tenant agrees to surrender possession of the Premises/Storage Area, and every party thereof, to Landlord in good order, condition and repair, ordinary wear and tear alone excepted. "Ordinary wear and tear" does not include any damage or deterioration that would have been prevented by good maintenance practice or by Tenant performing all of its obligations under this Lease. 14. Notices. Except as otherwise provided, all notices required or permitted to be given under this Lease must be in writing and addressed to the parties at their respective notice addresses set forth below; provided, that notices to Tenant may also be effectively given in writing and addressed to Tenant at the Premises address. Notices must be given by personal delivery (including by commercial delivery service) or by first-class mail, postage prepaid. Notices will be deemed effectively given, in the case of personal delivery, upon receipt (or if receipt is refused, upon attempted delivery), and in the case of mailing, three (3) days following deposit into the custody of the United States Postal Service. The notice addresses of the parties are as follows: If to Landlord: With a copy to: If to Tenant: With a copy to: City of Temple City 9701 Las Tunas Drive Temple City, California 91780 Attention: City Manager Burke, Williams & Sorensen, LLP 444 South Flower Street, Suite 2400 Los Angeles, California 90071 Attention: Gregory M. Murphy, City Attorney Chief Executive Office-Real Estate Division 320 W. Temple Street, 7th Floor Los Angeles, California 90012 Attention: Director of Real Estate Email: LeaseAcquisitions@ceo.lacounty.gov County of Los Angeles -Public Library 7400 E. Imperial Hwy Downey, CA 90242 Attention: Skye Patrick, County Library Director 15. Waiver and Release of Benefits. Lessee acknowledges that upon expiration of the Term, including any extension thereof, or upon termination of any holdover tenancy (collectively "Expiration of Tenancy"), Lessee might be or become eligible to receive compensation, reimbursement, assistance, including, but not limited to, the fair market value of real and personal property, loss of goodwill, loss of profits, actual and reasonable expenses for moving a business, loss of tangible personal property as a result of moving the ATTACHMENT A business, expenses incurred in searching for a replacement site for the business, expenses to reestablish the business at the new site, "in-lieu payments," and other such benefits (collectively "Benefits") under the California Relocation Assistance Act (Government Code §7260, et seq.), Title 25 of the California Code of Regulations, Article 1, § 19 of the California Constitution, the California Eminent Domain Law (Code of Civil Procedure §1230.010, et seq.), or other similar local, state, or federal statute, ordinance, regulation, rule, or decisional law (collectively "Compensatory Laws"). Lessee further acknowledges that it has received full and fair compensation of all Benefits Lessee is or might be or might become entitled to recover from the City of Temple City as a result of, or in any way related to, Expiration of the Tenancy, City's acquisition of the Premises/Storage Area, and City's occupancy and possession of the Premises/Storage Area. Therefore, being fully informed of and understanding the acknowledgments made herein and of Lessee's rights or potential rights to Benefits under the Compensatory Laws, Lessee hereby expressly and unconditionally waives, and Releases the City from, any and all rights of Lessee to claim, demand, sue for, or receive any Benefits which Lessee is or might be or might become entitled to recover from the City as a result of, or in any way related to, Expiration of the Tenancy, City's acquisition of the Premises/Storage Area, and City's occupancy and possession of the Premises/Storage Area. 16. General. a. The acceptance by Landlord of any rental or other payments due hereunder with knowledge of the breach of any of the terms, covenants or provisions of this Lease by Tenant shall not be construed as a waiver of any such breach. The acceptance at any time or times by Landlord of any sum less than that which is required to be paid by Tenant shall, unless Landlord specifically agrees otherwise in writing, be deemed to have been received only on account of the obligation for which it is paid, and shall not be deemed an accord and satisfaction notwithstanding any provisions to the contrary written on any check or contained in any writing transmitting the same. b. The titles to the sections of this Lease are for convenience of reference only and are not a part of this Lease and shall have no effect upon the construction or interpretation of any part of this Lease. Any exhibits attached to this Lease are, however, a part of this Lease. This Lease shall be governed by and construed in accordance with the laws of the State of California, without regard to any otherwise governing principles of conflicts of law. In construing this Lease, none of the parties to it shall have any term or provision construed against it solely by reason of its having drafted the same. c. Any provision of this Lease that is invalid, illegal or unenforceable shall be ineffective to the extent of such invalidity, illegality or unenforceability without invalidating, diminishing or rendering unenforceable the rights and obligations of the parties under the remaining provisions of this Lease. d. No term or provision of this Lease may be amended, altered, modified or waived orally or by a course of conduct, but only by an instrument in writing signed by a duly authorized officer or representative of the party against which enforcement of such amendment, alteration, modification or waiver is sought. Any amendment, alteration, modification or waiver shall be for such period and subject to such conditions as shall be ATTACHMENT A specified in the written instrument effecting the same. Any waiver shall be effective only in the specific instance and for the specific purpose for which given. e. This Lease may be executed in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. f. If either party hereto brings an action to enforce the terms hereof or declare rights hereunder, the action must be filed in a court of competent jurisdiction closest to Temple City, and the prevailing party in such action, on trial or appeal, shall be entitled to reasonable attorneys' fees to be paid by the losing party as fixed by the court. g. If any mechanic's or material men's lien or liens shall be filed against the Premises for work done by or materials furnished to the Tenant, the Tenant will, at its own cost and expense, cause such lien or liens to be discharged within fifteen (15) days after notice thereof by filing or causing to be filed a bond or bonds for that purpose. In the event any notice preliminary to establishing such a lien (such as the California Preliminary 20-Day Notice) is served on Tenant for work done on the Premises, Tenant shall immediately forward a copy of such notice to the Landlord. h. Each individual executing this Lease on behalf of the parties represents and warrants that he or she is duly authorized to execute and deliver this Lease on behalf of that respective party. i. Anything to the contrary notwithstanding, this Lease is not be binding or effective until its approval and execution by the Los Angeles County Board of Supervisors, and approval and execution by the City Manager of the City of Temple City. j. This Lease and all exhibits attached to it constitutes the entire agree- ment of the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements (whether written or oral) with respect to that subject matter. [Signatures to Follow] ATTACHMENT A IN WITNESS WHEREOF this Lease has been executed the day and year first set forth above. LANDLORD: Attest: Peggy Kuo City Clerk Approved as to Form: By: _______ _ Gregory M. Murphy City Attorney TENANT: ATTEST: DEAN C. LOGAN Recorder/County Clerk Of the county of Los Angeles By: ---------- Deputy APPROVED AS TO FORM: MARY C. WICKHAM County Counsel By:---------- Deputy CITY OF TEMPLE CITY By:------------ Name: Bryan Cook Its: City Manager COUNTY OF LOS ANGELES, a body corporate and politic SACHI A. HAMAI Chief Executive Officer By:------------ Dean Lehman Senior Manager, Real Estate Division EXHIBIT "A:' (Depiction of the Leased Premises) ATTACHMENT A ATTACHMENT A EXHIBIT "B" (Depiction or Description of the Storage Area) I ·e· I ~ .-' ,, ... ' ' ~ t ti .. ... ' ... ' t ,. r r:-., '. '" ~ "' ATTACHMENT B / ~·"•· \ ,,.,Ui;'t,1 ____ ~ •~_: STA1'£0F(:ALJFORNJA AUTHENTICATED EI.ECIBONICI.EGAl.l\',TERL'.t State of California GOVERNMENT CODE Section 25351 25351. (a) The board may construct, expand, lease, build, rebuild, furnish, refurnish, or repair buildings for a hospital, almshouse, courthouse, jail, historical museum, aquarium, library, art gallery, art institute, exposition building for exhibiting and advertising farming, mining, manufacturing, livestock raising, and other resources of the county, stadium, coliseum, sports arena, or sports pavilion or other building for holding sports events, athletic contests, contests of skill, exhibition, spectacles and other public meetings, and such other public buildings as are necessaiy to cany out the work of the county government. (b) Whenever the board of supervisors of a county decides to go out to bid to constrnct a county building, expand an existing building, expand the use of an existing building, or enter into a lease of an existing building within the incorporated territory of a city, the board shall notify in writing, at least 60 days prior to going to bid or entering into a lease, the city clerk of the city where the building is to be constrncted, expanded, or leased. (c) In those instances where the board is exempt from the bidding process, the board shall notify the city clerk in writing, at least 60 days prior to the construction, expansion, or lease of a building. (d) The 60-day notification requirements imposed by subdivisions (b) and ( c) may be waived if the city council consents, by resolution, thereto. (Amended by Stats. 1990, Ch. 137, Sec. l.) ATTACHMENT C RESOLUTION 19-5440 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, WAIVING THE 60-DAY NOTICE REQUIREMENT PERTAINING TO THE LOS ANGELES COUNTY LIBRARY LEASE AGREEMENT WHEREAS, Government Code Section 25351 imposes a requirement upon counties to provide at least 60 days' written notice to the city clerk before leasing a building within that city's jurisdiction; and WHEREAS, Los Angeles County has been in negotiation with the City to lease certain City property for library use purposes, which had been submitted to the City Council at the December 3, 2019 City Council meeting for their approval; and WHEREAS, the City, as a party to this lease, has had adequate notice of such a lease; and WHEREAS, Los Angeles County has requested the City waive such notice by resolution, as permitted under the Government Code Section 25351 (d). NOW, THEREFORE, the City Council of the City of Temple City does hereby resolve, declare, determine, and order as follows: SECTION 1. Waiver of 60 Day Notice. The City Council waives the 60-day notice requirement for the December 3, 2019 Los Angeles County Library Lease Agreement, pursuant to Government Code Section 25351(d). PASSED, APPROVED AND ADOPTED ON_ DAY OF DECEMBER, 2019. ATTEST: CITY OF TEMPLE CITY: Peggy Kuo, City Clerk Nanette Fish, Mayor APPROVED AS TO FORM: Gregory M. Murphy, City Attorney I, PEGGY KUO, CITY CLERK of the City of Temple City do hereby certify that the foregoing Resolution was adopted at a Regular Meeting of the City Council of the City of Temple City held on the_ day of December, 2019. AYES: NOES: ABSENT: ABSTAIN: Councilmember - Councilmember - Councilmember - Councilmember - Resolution No. 19-5440 Page 2 of 2 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Temple City, California, this_ day of December, 2019. Peggy Kuo, City Clerk