HomeMy WebLinkAbout02/17/2015 06 Audience ParticipationDistributed at t3.e4
Meetingj-)
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Having been in business in downtown Yakima for 35 years, I've experienced a lot of
challenges. 1 have volunteered many hours participating on many city delegations, community
boards, commissions and task forces. The 2008 Great Recession stressed Santiago's. And finally in
2014, we saw positive changes of recovery. Business was up 21% over 2013! But on October 25,
2014 that all changed for the worse with the broken water main in front of Santiago's.
The broken pipe was repaired the same day. But "extending circumstances" became the
real challenge. Due to improper procedures, the entire 12" main between 1St and 2" Avenues was
totally destroyed. The whole line had to be replaced. Yakima Avenue and the sidewalk on the
north side of the block were repeatedly "closed" for 25 days between October 25 and January 13,
2015. Santiago's street parking and front entrance to the business were blocked from customer
use. It appeared that Santiago's was closed. The business next door, Vida Rugs, has yet been able to
re -open. This has caused Santiago's to suffer a substantial loss of cash flow and inability to pay all
costs of doing business.
As instructed by City Staff, I filed a loss claim with the City. It was forwarded to the city
insurance company. In the beginning, everyone appeared to be friendly and helpful. I was told
that this claim would be divided into two parts; first to provide immediate relief and second to
calculate long-term loss while rebuilding customer trade to equal that of prior to the incident. To
date, I have received no loss compensation. Recovery of trade has been painfully slow and
stressful.
The insurance company kept requiring additional extensive information. They requested
daily sales reports for every day starting with 2011. Also requested, all Excise Tax and B&0
returns of past 3 years. l told them that these reflected "recession days" and were not current of
our 2014 turn around. I stated that we should be analyzing the current business of the weeks prior
to the incident In cooperation, I gave them the information. Then they requested all payroll
information, employees names, position, pay rates and hours worked. I thought this was too much,
but again I forwarded the information. Then they wanted my personal tax returns of the past 3
years. I objected. This was personal information and not related to losses due to the water main
break. I refused to forward the information. I felt that I was being "overburdened, worn down" and
set-up to accept a ridiculous unfair settlement. I was branded as uncooperative in providing
information. Actually, l provided too much information.
In mid January, the insurance company issued a take it or leave it offer of $5,300. This was
an insult and so unfair. 1 was told that the insurance had determined a food cost savings and was
taking it as a credit against my claim. I asked what is a "food cost savings"? The reply was that due
to lack of customers, l saved money not having to buy food! What? How do I make money? I make
money by buying food and selling the product to customers. I need customers to continue in
business. Without customers, I go out of business. I did not appreciate the spin and twist applied
by the insurance company. In reality, I lost. There were no savings. So, I asked what about my food
costs of the food that spoiled and was thrown out due to lack of customers. The reply; we don't
have that information and it is not part of our calculations. Where is the two way street on this?
This major disruption of business made it impossible to forecast business for the purpose
of scheduling labor and buying food. I had to continue buying food in hopes of regaining
customers and this created a higher food waste due to the lack of customers. Also, I had to
maintain staffing. This created higher labor costs. I could not take the risk of being understaffed
and out of product That would definitely result in loss of customers when we were trying to re-
establish our customer trade.
I asked the claims adjuster for an advertising budget to build back the trade. I was denied
because City had issued a media release on behalf of Santiago's. Fulfilling any obligation.
I was also told that any losses after November would not be considered. It was stated that I
had plenty of time to rebuild my business and failure to do so was my fault It is not my fault. 1
have been a victim twice! My front entrance was barricaded again on January 12 & 13 to drill core
samples. Again it appeared to customers, that Santiago's was closed.
Having to operate with higher food / labor costs and with the loss of cash flow, we have
been unable to pay our fixed costs. The business we had covered most of food and labor costs. But
the other fixed costs; rents, utilities, taxes, equipment leases, licenses, business loans have all
become delinquent with additional late fees attached. This has become extremely critical for the
survival of Santiago's.
The claims adjuster stated that should I accept the offer, it would have to be approved by
the City before funds issued. I asked why? How does the City have final say on an insurance claim?
1 was told that the City maintains a high deductable and the City would be issuing settlement
funds. So if this a City issue, why have I wasted almost 3 months with the insurance company that
cannot make a settlement decision? That is why I am bringing my grievance to the City Council. All
I want is a fair and reasonable settlement of my losses caused by the broken water main.
The City insurance claim adjuster stated that the City has accepted full 100% liability. And
because of such acceptance, there is to be no discussion of the "situation" that caused the
destruction of the main. With full liability acceptance I expect full responsibility of a fair and
reasonable settlement. I am appealing for such a settlement.
Calculation of the immediate impact upon Santiago's is for the time frame from October 25, 2014
to the end of November 2014. By establishing five weeks of daily averages prior to October 25 and
comparing it to five weeks of daily sales after the incident, has determined a cash flow loss of
$16,835.60.
For the year 2014 from January 1 to October 24, there was an annual average increase of 20.75%.
For the month of December 2014, loss was calculated by the difference of December 2013
(projected with the annual 2014 average increase) resulting in loss of cash flow of $2,499.75.
Santiago's was open two additional days in 2014, compared to December 2013.
For the month of January 2015, loss was calculated by the difference of January 2014 (projected
with the annual 2014 average increase) resulting in loss of cash flow of $ 9,242.45.
For settlement purposes only from October 25, 2014 to January3l, 2015, I respectfully request a
settlement of $ 28,577.80.
Should the Department of Revenue determine that sales tax must be paid on this amount of
settlement, 1 request that it be paid in addition to the settlement at 8.2% or $2,343.38.
I also request that you consider employees' loss of gratuity in the amount of $4,286.67,
calculated at 15%. This is a true loss that my staff has had to endure. The claims adjuster rejected
this stating it was not a business loss. It is a loss directly related to the liability! I asked the claims
adjuster if individual employees would have to file claims separately. His reply was they could, but
that their claims would be rejected. I disagree. This is unfair that staff was deprived of income
opportunity.
If we fail to reach a settlement agreement, this will become a legal issue. It will cost
everyone time and money. There is a risk that Santiago's could be forced out of business for failure
to pay delinquent fixed costs. The liability then changes from loss of cash flow to total loss of a
business. 1 prefer fair settlement and not engage with dueling attorneys.
EXCISE REPORT
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
2013 2014
$23,941.95 $28,922.22
$27,915.00 $31,248.41
$34,618.80 $41,913.90
$33,821.64 $39,415.74
$42,786.81 S53,555.59
$39,269.02 $48,262.75
$41,515.29 $49,945.90
$45,846.00 $52,696.66
$31,340.92 $40,875.17
$29,375.07 $36,321.34
Month Increase growth
2014 vs. 2013
20.80%
11.94%
21.07%
16.54%
25.17%
22.82%
20.31 %
14.94%
30.42%
23.68% YTD 10/24
$321,055.43 $386,836.34
Oct 25 - 30
$350,430.50
$5,853.63
$423,157.68
$7,119.32
20.49%
23.65% Break 10/25
20.75%
21.62%
OCT $35,228.70 543,440.66
NOV $25,625.91 529,504.96
DEC $25,767.34 $32,157.52
Year TOTALS $407,677.38 $491,939.48
23.31%
15.14%
17.48%
20.67%
MO. AVG $33,973.12 $40,994.96 20.67%
$60,000.00
$50,000.00
$40,000.00
$30,000.00
$20,000.00
$10,000.00
$0.0o
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT
••••-•2013
t 2014
DAILY LOSS OF CASH FLOW
DATE
MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY
20 - 24 Oct 966.56 953.44 1394.56 1444.56 2753.77
13 - 18 Oct 978.40 1219.14 1821.54 1637.87 3214.81 2005.01
6 - 11 Oct 1865.31 984.41 1392.19 1591.71 2580.80 2675.92
29 Sep - 4 Oct 1182.43 1807.88 1335.67 1363.74 4392.52 2727.78
22 - 27 Sep 1519.53 1303.45 1448.42 1888.64 3609.89 2250.59
Prior to Break
5 Wk Daily Avg $1,302.45 $1,253.66 51,478.48 $1,585.30 $3,310.36 $2,414.83
25 -Oct 1848.96
LOSS ($565.87)
27 Oct - 1 Nov 984.26 807.05 854.10 1652.32 1556.40 1444.33
LOSS (5318.19) (1446.61) (1624.38) $67.02 ($1,753.96) (1970.50)
3 - 8 Nov 852.80 908.70 816.99 925.75 2811.91 1598.86
LOSS (1449.65) 3344.96) 3661.49) (1659.55) ($498.45) 3815.97)
10 - 15 Nov 1238.39 863.96 1032.05 1143.17 2010.00 1885.51
LOSS (64.06) (389.70) (446.43) (442.13) (1,300.36) (529.32)
17 - 22 Nov 854.61 1288.93 970.84 1169.08 2933.23 1401.30
LOSS (1447.84) $35.27 (1507.64) (1416.22) 3377.13) (11,013.53)
24-29 Nov 902.21 1309.71 1522.25 0 1061.01 978.79
LOSS 3400.24) $56.05 143.77 0 (12,249.35) 31,436.04)
($20,616.53) Gross & Gratuity' 15%
(117,927.42) Total Loss
(116,568.78) Net Loss
FIRST FRIDAY EVENT
Oct'13 3446.44
Nov'13 2748.86
Dec' 13 1937.80
Jan'14 2804.23
Feb' 14 1600.67
Mar'14 4705.19
April'14 3712.61
May'14 4639.54
Jun'14 3822.62
July 4th: closed
Aug'14 3510.57
Sep' 14 3442.48
Oct'14 4392.52
Average 13,396.96
($565.87) Week Loss
Street & Sidewalk CLOSED October 25, 2014
($4,046.61) Week Loss
* (13,430.06) Week Loss * "First Friday 11/7 ($585.05)
Street paved & open 5pm Monday Nov. 10, 2014
($3,171.99) Week Loss
Street Parking & Sidewalk CLOSED Nov: 19, 20, 21, 22, 23, 24
(12,727.08) Week Loss
($3,985.80) Week Loss Thanksgwing Closed
DAILY LOSS OF CASH FLOW
DECEMBER 2013
23 Days
20.75% D
PROJECTED
EMBER 2014
ACTUAL
25 Days
1
Monday 2 623.79 753.23 1 530.52
Tuesday 3 919.31 1110.07 2 908.33
Wednesday 4 746.31 901.17 3 1450.90
Thursday 5 518.60 626.21 4 1124.68
Friday 6 1937.80 2339.89 5 2373.86
Saturday 7 805.20 972.28 6 1126.34
8 7
Monday 9 993.35 1199.47 8 998.91 (200.56)
Tuesday 10 1127.86 1361.89 9 1120.02 (241.87)
Wednesday 11 1527.04 1843.90 10 1088.73 (755.17)
Thursday 12 1132.76 1367.81 11 800.81 (567.00)
Friday 13 1293.76 1562.22 12 2188.91 626.69
Saturday 14 1410.96 1703.73 13 920.33 (783.40)
15 14
Monday 16 1112.88 1343.80 15 1036.57 (307.23)
Tuesday 17 1177.43 1421.75 16 1074.33 (347.42)
Wednesday 18 745.95 900.73 17 1404.60 503.87
Thursday 19 1201.82 1451.20 18 1808.47 357.27
Friday 20 2285.16 2759.33 19 2717.54 (41.79)
Saturday 21 1053.16 1271.69 20 1584.00 312.31
22 21
Monday 23 22 866.36 866.36 * No date to compare
Tuesday 24 23 1457.40 1457.40 * No date to compare
Wednesday 25 24
Thursday 26 929.75 1122.67 25 * No date to compare
Friday 27 1440.28 1739.14 26 2604.64 865.50
Saturday 28 1274.72 1539.22 Z7 1193.54 (345.68)
29 28
Monday 30 1061.55 1281.82 29 549.42 (732.40)
Tuesday 31 2560.81 3092.18 30 1437.53 (1654.65)
Wednesday 31 2427.88 2427.88 * No date to compare
($2,499.75)
(222.71)
(201.74)
549.73
498.47
33.97
154.06
($9,24,7 45)
DAILY LOSS OF CASH FLOW
JANUARY 201420.75% II JANUARY 2015
/ PROJECTED ACTUAL
26 Days 27 Days
Thursday 2 500.11 603.88 1 (603.88) * No Date to compare
Friday 3 2804.23 3386.11 2 2293.65 (1092.46)
Saturday 4 878.27 1060.51 3 849.63 (210.88)
5 4
Monday 6 949.03 1145.95 5 580.45 (565.50)
Tuesday 7 1160.19 1400.93 6 661.49 (739.44)
Wednesday 8 739.86 893.38 7 840.51 (52.87)
Thursday 9 1060.88 1281.01 8 684.75 (596.26)
Friday 10 2694.61 3253.74 9 1881.97 (1371.77)
Saturday 11 961.76 1161.33 10 675.53 (485.80)
12 11
Monday 13 651.46 786.64 12 536.64 (250.00) St. Parking & Sidewalk CLOSED
Tuesday 14 1156.18 1396.09 13 532.34 (863.75) St. Parking & Sidewalk CLOSED
Wednesday 15 1025.34 1238.10 14 825.37 (412.73)
Thursday 16 801.13 967.36 15 738.64 (228.72)
Friday 17 1676.96 2024.93 16 1669.13 (355.80)
Saturday 18 1119.29 1351.54 17 878.74 (472.80)
19 18
Monday 20 429.78 518.96 19 553.41 34.45
Tuesday 21 676.60 816.99 20 878.74 61.75
Wednesday 22 981.29 1184.91 21 852.38 (332.53)
Thursday 23 1017.13 1228.18 22 758.22 (469.96)
Friday 24 2069.55 2498.98 23 1599.80 (899.18)
Saturday 25 1891.27 2283.71 24 2147.85 (135.86)
26 25
Monday 27 1044.48 1261.21 26 1524.35 263.14
Tuesday 28 977.11 1179.86 27 808.45 (371.41)
Wednesday 29 687.54 830.20 28 1135.23 305.03
Thursday 30 565.04 682.29 29 1072.90 390.61
Friday 31 2774.76 3350.52 30 2202.16 (1148.36)
31 1362.54 1362.54 * No Date to compare
October 25, 2014
Intersection of Yakima Ave and First St.
Looking east
Intersection Yakima Ave and Second St.
Looking west
The "BREAK" about 7 ft. long
Same day repair... but...
1"
YAKIMA Ave. CLOSED for extensive repairs
.1111111edil -
City
••••••••
•
1st & Yakima Ave looking east, digging up the Main Line
November 9, 2014
Street & Sidewalk CLOSED
401k
SIDEWALK
CLOSED
SS
November 19, 2014 Looking west
Santiago's Street Parking & Sidewalk CLOSED
January 13, 2015 Looking west
Drilling Core Samples in the Sidewalk
Santiago's Street Parking & Sidewalk CLOSED
Jar Arcand
cell: 961-4830 tacos@santiagos.biz