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[ CALL TO ORDER: Mayor Bill Wells]
THE MEETING IS CALLED TO ORDER, AND I'D LIKE TO ASK THE CITY CLERK TO PLEASE CALL THE ROLE ALL COUNCIL MEMBERS ARE PRESENT.WOULD YOU ALL STAND WITH ME FOR THE PLEDGE OF ALLEGIANCE AND THEN REMAIN STANDING FOR A BRIEF MOMENT OF SILENCE? I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
BEFORE WE GET STARTED, I, I WANNA WARN YOU THAT MY COLLEAGUE, UM, GARY HENDRICK HERE MAY BE STANDING AND, AND WATCHING US FROM ABOVE, UH, FOR A WHILE BECAUSE, UH, HE'S HAD A PROBLEM WITH HIS BACK AND, UH, THAT'S WHAT HE NEEDS TO DO.
BUT THAT'S, THAT'S, HE'S A DEDICATED PUBLIC SERVICE AND I KEEP TELLING HIM TO TAKE THE DAY OFF, BUT HE WON'T DO IT, SO HE'S GONNA STAND, HE, UM, ALRIGHT.
[ POSTINGS: The City Clerk posted Orders of Adjournment of the April 9, 2024, Meeting and the Agenda of the April 23, 2024, Meeting in accordance to State Law and City Council/Housing Authority/Successor Agency to the Redevelopment Agency Policy.]
ORDERS OF ADJOURNMENT OF THE APRIL 9TH, 2024 MEETING AND THE AGENDA OF THE APRIL 23RD, 2024 MEETING IN ACCORDANCE WITH STATE LAW, CITY COUNCIL AND HOUSING AUTHORITY POLICY.UM, I'M GONNA PUT OFF PROCLAMATIONS FOR A LITTLE BIT.
WE HAVE SOME PEOPLE THAT ARE HERE AND NEED TO, UH, QUICKLY LEAVE.
I'M ALSO GONNA PUT OFF CONSENT ITEMS, BUT WE ARE GONNA GO TO PUBLIC COMMENT.
[ PUBLIC COMMENT: At this time, any person may address a matter within the jurisdiction of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency that is not on the Agenda. Comments relating to items on today’s docket are to be taken at the time the item is heard. State law prohibits discussion or action on items not on the Agenda; however, Council, Authority and Agency Members may briefly respond to statements or questions. An item may be placed on a future Agenda.]
AT THIS TIME, ANY PERSON MAY ADDRESS A MATTER WITHIN THE JURISDICTION OF THE CITY COUNCIL HOUSING AUTHORITY SUCCESSOR AGENCY TO THE ALCOHOL AND REDEVELOPMENT AGENCY THAT IS NOT ON THE AGENDA.COMMENTS RELATING TO ITEMS ON TODAY'S AGENDA ARE BE TAKEN AT THE TIME THAT THE ITEM IS HEARD.
STATE LAW PROHIBITS DISCUSSION OR ACTION ON ITEMS NOT ON THE AGENDA.
HOWEVER, CITY COUNCIL AND HOUSING AUTHORITY MEMBERS MAY BRIEFLY RESPOND TO STATEMENTS OR QUESTIONS, AND AN ITEM MAY BE PLACED ON A FUTURE AGENDA.
ANGELA, DO WE HAVE SOME SPEAKER CARDS FOR PUBLIC COMMENT? YES, SIR, WE DO.
THE FIRST ONE IS STEVEN MARTIN.
CAN YOU PULL UP YOUR MICROPHONE A LITTLE BIT SO WE CAN HEAR YOU? UH, WE LIVE ON TAFT AVENUE.
WE WERE HERE A COUPLE WEEKS PRIOR FOR DISCUSSING THE HIGH SPEED IN OUR NEIGHBORHOOD AND PEOPLE DOING DONUTS AND, UH, BLOWING THROUGH THE STOP SIGNS.
UM, SINCE OUR LAST TIME WE SPOKE, UH, ACTUALLY I DIDN'T SPEAK LAST TIME, BUT LAST TIME WE WERE HERE I HAD ANOTHER CAR END UP IN MY FRONT YARD AGAIN.
SO, UH, WE HAD, WE DID A PETITION, WE HAD WELL OVER A HUNDRED SIGNATURES FOR, UH, SPEED BUMPS OR SLOWING MEASURES IN OUR NEIGHBORHOOD, UH, FROM ALL OF OUR NEIGHBORS.
UM, I'M A PICTURE'S WORTH A THOUSAND WORDS, SO I HAVE A, HAVE A MAP HERE.
UM, SHOWING WHERE, WHY WE HAVE SOME ISSUES AND WHERE THEY'RE LOCATED.
UH, SO THIS IS OBVIOUSLY TAFT AVENUE.
IF I KNOW IT'S, I WISH IT WAS BIGGER, I APOLOGIZE.
UM, COMING THROUGH WASHINGTON, IF THEY SEE THAT THERE'S A RED LIGHT OFF FOR AVOCADO, THEY CUT THROUGH AND SOMETIMES GO DOWN NETTE OR OVER TO CHASE, AND IT'S TO AVOID SEVERAL STOPLIGHT INTERSECTIONS.
AND, UM, AND WHEN THEY DO THAT, THERE'S, THERE'S NO STOP SIGNS, NO SPEED BUMPS, AND THEY CAN JUST BLOW THROUGH AT 40 PLUS.
THE GUY THAT WE HAD ON VIDEO WAS GOING OVER 80, THE ONE WE SENT YOU GUYS LAST TIME.
UM, IT'S ONE OF THE THINGS THAT WE RECOMMEND IS MAYBE PUTTING SPEED HUMPS OR, UH, SPEED BUMPS.
UM, I LOOKED AT THE BUDGET ON THOSE THINGS.
THEY'RE RUN ANYWHERE FROM A THOUSAND TO $2,500 PER SPEED BUMP.
I IMAGINE THE MORE YOU PURCHASE, THE CHEAPER THEY ARE IN, IN INDIVIDUALLY.
UH, LOOKS LIKE WE ONLY NEED SIX, UH, SPEED BUMPS WOULD PROBABLY SLOW MOST THE TRAFFIC DOWN AND, UM, DRAMATICALLY, UH, THE REASON TAFT IS, I, I BELIEVE ALSO AFFECTED BY SPEED IS IF YOU WERE TO CONTINUE PAST WASHINGTON, THE SPEED NARROWS DRAMATICALLY BY 10 FEET.
SO WE HAVE A, A VERY WIDE STREET HERE WITH WIDE SET, UH, SETBACKS, WIDE SIDEWALKS, WIDE PARKWAYS.
SO VISIBILITY IS LIKE A NEAR AIRSTRIP.
UH, I THINK THE SPEED BUMPS ARE PROBABLY THE ONLY OPTION SINCE I LIVE HERE ON THE CORNER AND THEY RUN THE STOP SIGN REGULARLY.
UM, I GOT A LOT OF SIGNATURES IN ONE DAY.
IN ONE AFTERNOON I GOT OVER 50 SIGNATURES FROM NEIGHBORS.
UM, THERE WAS, IT WAS A GROUP PART EFFORT, SO I WASN'T THE ONLY ONE COLLECTING SIGNATURES.
UM, A LOT OF 'EM WERE ACTUALLY ON DENISE AS WELL.
UM, AND WHAT TALKING WITH THE NEIGHBORS THERE, WHEN THEY CROSS TAFT AVENUE, THEY ALMOST GET
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HIT ALL THE TIME.AND TURNS OUT THE PERSON THAT WAS GOING ON ONTO MY FRONT DRIVEWAY WAS A NEIGHBOR ONTO DENISE.
UM, THE, THE PERSON GOING DOWN TAFT AVENUE WAS GOING SO FAST THEY SWERVED TO AVOID GETTING, UH, HIT AS A, AS THEY WERE TRAVELING ON THE STREET AND ENDED UP IN MY DRIVEWAY OR MY, MY GRASS WHERE MY KIDS PLAY.
SO WE DEFINITELY HAVE TO DO SOMETHING ABOUT THIS.
UM, THE, THE COST OF THE SPEED BUMPS IS NOTHING COMPARED TO A COST OF A LAWSUIT ON SOMETHING LIKE THIS BECAUSE YOU GUYS ARE AWARE OF THIS.
THIS IS, UH, MORE IMPORTANTLY THE COST OF A LIFE.
UH, LET ME SEE IF THERE'S ANY QUESTIONS BEFORE YOU, AND THEN I'M GONNA ASK MY CITY MANAGER WHERE WE'RE AT WITH THIS.
GRAHAM, HAVE WE MADE ANY PROGRESS IN THIS PROCESS? I, I KNOW WE INSTALLED SOME, THE SIGNAGE, THE, UM, SPEED MONITORING SIGN.
THAT, AND SO I THINK THE NEXT STEP WAS, LET'S SEE HOW THAT GOES AND IF THAT MAKES ANY DIFFERENCE, WE'LL GO OUT AND DO SOME MEASURING.
WE'LL LOOK AT THE PETITION AND WE CAN LOOK AT, UM, WHAT THE NEXT STEPS WOULD BE.
UM, I WANT YOU TO KEEP IN TOUCH WITH US, UH, OKAY.
I THINK EVERYBODY HERE VERY MUCH CARES ABOUT THIS ISSUE AND WE HAVE TO GO THROUGH THE PROCESS.
I DO WANNA TELL YOU THAT, THAT THE COST OF THE SPEED HUMPS, I, I, I DON'T THINK THAT'S AN ISSUE.
IT, IT, IT, SPEED BUMPS ARE CONTROVERSIAL BECAUSE THEY DO DAMAGE THE CARS AND THERE'S A LOT OF PROBLEMS WITH SPEED HU BUT, UM, WE'RE NOT RULING THAT OUT.
AND I'M GONNA HAVE, UH, OUR CITY MANAGER FIND OUT WHAT THE NEXT STEP IS AND THEN, UM, WE'LL GET, WE'LL GET BACK TO YOU.
AND IF YOU'D LIKE TO, UH, LEAVE YOUR NUMBER FOR ME, I CAN KEEP IN TOUCH WITH YOU AND GIVE HIM MY, UH, CELL PHONE NUMBER.
LET'S KEEP IN TOUCH AND QUESTION.
UH, YES, STEVE COUNCILMAN OR TEASER JUST TALKING ABOUT THIS AT THE BEGINNING OF THE, OF THE MEETING.
'CAUSE HE'S GOT SPEEDING ON WASHINGTON.
I'VE GOT SPEEDING ON GREENFIELD.
MAYBE THERE IS SOME TYPE OF ENGINEERING THAT CAN BE DONE THAT DOESN'T, I, I GUESS I'M THINKING SOME PLACES I'VE SEEN KIND OF LIKE A LITTLE ISLAND IN THE MIDDLE OF THE STREET THAT HAS A TREE IN IT AND IT DOES TAKE AWAY TWO LANES DOWN TO ONE LANE, BUT IT DOES FORCE A DRIVER TO MAKE A CURVE AROUND THAT TREE IN THE MIDDLE OF THE STREET.
AND THAT BY NATURE ENGINEERS THEM TO A SLOWER SPEED.
IF TAFT IS WIDE ENOUGH, THAT MIGHT BE SOMETHING TO LOOK AT.
BUT, BUT THE ENGINEERING I THINK IS WHERE IF WE CHANGE IT OR DIRECTION, THEN MAYBE WE SLOW THEM DOWN FOR THOUGHT.
I MEAN, CLEARLY A STREET DIET OR NARROWING THE STREET, A LONG-TERM ENGINEERING SOLUTION IS FAR MORE EFFECTIVE THAN ENFORCEMENT AND EDUCATION.
SO I I THINK YOU'RE EXACTLY RIGHT.
I I JUST WANT TO EXPRESS THE SENSE OF URGENCY I HAVE IN THIS AREA FOR THESE RESIDENTS.
I, I DON'T WANT CARS ENDING UP IN MY RESIDENT'S FRONT YARD, IN THEIR FRONT HOMES.
UM, IT'S 25 MILE PER HOUR NEIGHBORHOOD.
I DON'T WANT KIDS GETTING HIT.
AND SO WHATEVER WE CAN DO TO HIT THE FAST FORWARD BUTTON WITH THIS AND WHEN COUNCIL MEMBER GOBEL AND I WERE SPEAKING, UM, IT DOES SEEM LIKE THE PULSE ON THE NEIGHBORHOODS ARE THAT THERE'S MORE SPEEDING IN SMALLER NEIGHBORHOODS THAN THERE HAS BEEN IN THE PAST FIVE YEARS.
AND SO IF THERE ARE TRENDS, MAYBE WE CAN LOOK INTO THAT.
BUT I AGREE WE CAN DO A, A BLITZ WITH POLICE OFFICERS TO TICKET, UM, AND WE CAN DO, UH, YOUR SPEED IS SIGNS THAT TRACK THE RADAR WITH THE RADAR GUN.
BUT ENGINEERING IS REALLY THE ONLY SOLUTION.
AND, UM, I MEAN, WHEN A HUNDRED RESIDENTS SIGN A PETITION SAYING IT'S A PROBLEM, I THINK WE NEED TO RESPOND.
ANYBODY ELSE? MICHELLE? YEAH, NO, I AGREE WITH YOU.
I LIVE ON MOLLISON AND WE HAVE A QUARTER STRETCH, QUARTER MILE STRETCH THAT THEY RACE DOWN TO GET FROM BRADLEY TO GREENFIELD.
I DON'T THINK WE ALREADY HAVE STOP SIGNS.
THEY'RE, THEY'RE NOT MINDING THOSE.
I DON'T THINK THAT IT'S GOING TO MATTER TO THEM HOW MANY STOP SIGNS WE PUT UP.
THEY'RE THEY'RE ALREADY RUNNING THEM.
YEAH, IT'S EXACTLY, I HEAR IT EVERY DAY BECAUSE I KNOW WHAT CAPTAIN PAULINE, UM, I UNDERSTAND THAT THEY'RE RUNNING THOSE QUITE FREQUENTLY, SO THAT'S WHY WE'RE RECOMMENDING THE SPEED BUMPS BECAUSE IT FORCES THE VEHICLES TO SLIDE ON.
IF THEY'RE GONNA DO DAMAGE OVER A SPEED BUMP, THEY'RE GOING WAY TOO FAST.
AND I AGREE WITH MY COLLEAGUES THAT MAYBE WE, IT'S THE ENGINEERING, IT'S GOT TO, WE HAVE TO FIGURE SOMETHING OUT 'CAUSE THEY'RE NOT PAYING ATTENTION AS IT IS.
IS THERE A PROCESS, GRAHAM, THAT WE COULD COME UP WITH FOR A, UM, NEIGHBORHOOD TO POTENTIALLY INITIATE SPEED BUMPS IN THEIR NEIGHBORHOOD? DO WE HAVE A PROCESS? ONE LAST THING REAL QUICK, SORRY, I DON'T MEAN TO INTERRUPT, BUT PART OF THE REASON WE'RE HAVING THIS PROBLEM IS LINCOLN WAS THE CUT THROUGH PRIOR THEN SPEED BUMPS WERE
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ADDED THERE AND NOW THEY'RE GOING DOWN A COUPLE OF STREET OVER.SO LINCOLN GOT SPEED BUMPS AND WE FORCED EVERYBODY DOWN OUR STREET.
WHICH IT'S STILL A SHORTCUT, RIGHT? AS FAR AS SPEEDING THROUGH RESIDENTIAL NEIGHBORHOODS.
ONE THING IF YOU LIVE IN THE NEIGHBORHOOD, BUT I FOLLOW A LOT OF PEOPLE ON THE E-BIKE AND THEY'RE JUST PASSING THROUGH.
IT'S, IT'S IN THAT'S INCREDIBLE.
SORRY, I DIDN'T MEAN TO INTERRUPT.
WE, WE DON'T HAVE A FORMAL, THERE IS A PROCESS, UM, BUT WE DON'T HAVE A FORMAL PROCESS OR POLICY.
LIKE ENCINITAS, FOR EXAMPLE, HAS A POLICY WHERE IF A NEIGHBORHOOD INSTALLS THEM, YOU, YOU HAVE TO HAVE A CERTAIN PERCENTAGE OF THE RESIDENTS THAT SIGN THE PETITION.
THERE'S A FEE ASSOCIATED WITH IT.
UM, THEN THERE'S A PETITION TO UNINSTALL THEM BECAUSE A LOT OF TIMES WE FIND OUT THAT SPEED HUMPS ACTUALLY CREATE OTHER PROBLEMS AS WELL.
AND SO THEY HAD TO ANALYZE BOTH OF THOSE SIDES.
WE GOTTA BE CAREFUL, WE'RE MOVING INTO AN AGENDA ITEM AT THIS POINT, BUT I KNOW THAT THE CHIEF IS BRINGING FORWARD AN ANNUAL REPORT OF SOME EFFORTS THEY HAD IN SPEED ENFORCEMENT LAST YEAR.
AND THAT MAY BE A GOOD OPPORTUNITY TO INCLUDE IN THE STAFF REPORT, MAYBE SOME POLICY OPTIONS FOR THE COUNCIL TO EXPLORE.
MY CONCERN WITH SPEED BUMPS IS, UH, WE HAVE DELIVERY TRUCKS GOING DOWN THE ROAD EVERY DAY.
WE HAVE FIRE TRUCKS GOING DOWN THE ROAD EVERY DAY.
WE HAVE POLICE CARS GOING DOWN THE ROAD EVERY DAY AND WE CAN'T BEGIN TO GO DOWN THE ROAD, NO PUN INTENDED, OF BECOMING A SPEED BUMP CITY.
I THINK ENGINEERING IS THE PROBABLY THE BETTER ANSWER AND THAT'S PROBABLY A GOOD WAY TO START.
I THINK MOST CITIES HAVE FOUND THAT TO BE THE ANSWER AS WELL.
THANK YOU VERY MUCH FOR COMING.
SO I'M THE SECOND HALF OF THE, UM, SIGN OVER HERE.
I HAVE THE SIGN PETITION FROM ALL OF OUR NEIGHBORS.
THERE WAS A, AND THEN WE WENT UP TO THE 800 BLOCK AND WE'RE ALL THE WAY TO THE THOUSANDS AND EVEN INTO DENISE ON GETTING SOMETHING DONE WITH OUR STREET.
AND LIKE STEVE TOLD YOU WAS, YOU KNOW, BETWEEN THIS TIME FROM THE LAST TIME I, THE FIRST TIME THAT I CAME TO YOU, UM, OUR CITY COUNCILMAN PHIL ORTIZ, THANK YOU VERY MUCH, CAME BY WITH OUT OF HIS OWN POCKET AND GAVE US, CAN I SAY THAT TOO LATE? UM, CHILDREN, YOU KNOW, SLOW DOWN CAUTION SIGNS CHILDREN'S IN THE RAIN WITH HIS KIDS, SO TO HELP US WITH OUR NEIGHBORHOOD.
UM, AND SINCE THEN, STEVE, OUR, WE'VE ALREADY HAD AN ACCIDENT ALMOST HAPPEN IN STEVE'S YARD AGAIN.
WHEN YOU GET TO MINE STREET, UM, I'M A DIP.
THE THE STREET HAS A DIP,
MAYBE IN YOUR ENGINEERING DEPARTMENT YOU CAN GET RID OF THAT DIP BECAUSE THAT SEEMS TO JUST SPEED 'EM UP.
IT'S LIKE A, LET'S SEE WHAT WE CAN GET.
HOW, HOW WE, HOW HIGH COULD OUR CAR GET OFF THE GROUND? SO MAYBE THERE'S A A PLACE THAT YOU CAN START, BUT WE DEFINITELY NEED SOMETHING BEFORE SOMEBODY GETS KILLED.
AND THAT'S WHAT'S NEXT ON OUR AGENDA IS SOMEBODY'S GONNA GET KILLED.
YOU KNOW, OUR OUR KIDS SHOULD BE ABLE TO GO OUT IN THE NEIGHBORHOOD AND PLAY.
AND, UM, FROM WHAT I UNDERSTAND, THE SPEED THING THAT YOU GUYS PUT UP FOR THE, FROM THE POLICE DEPARTMENT, THANK YOU VERY MUCH FOR DOING SO.
IT CAME OUT TWO DAYS AFTERWARDS, BUT THEY'RE NOT EVEN CAPTURING THE DATA ON THE SPEED THAT'S JUST THERE TO MAKE PEOPLE FA THINK THAT THEY'RE, THEY'RE BEING MONITORED AND, AND THEY'RE NOT REALLY.
SO YOU DON'T EVEN HAVE THE DATA ON WHAT EXACTLY HAS BEEN GOING ON IN OUR STREETS SINCE THEY BROUGHT IN THE MACHINES.
SO WHO DO I TURN OUR PETITION IN? YOU CAN TURN IT TO ANGELA.
THANKS FOR LETTING US KNOW BARBIE.
KEEP US IN, IN, UH, THANK YOU FOR THE TIME TO TALK.
ALRIGHT SIR, THE LAST SPEAKER IS BRENDA HAMMOND.
UM,
BUT I FOUND IT AND I CLEANED IT OUT.
IT WASN'T IN EL CAJON, DON'T WORRY.
SO, UM, THE REASON WHY I WENT THERE WAS BECAUSE 43 YEARS AGO TODAY, I, I BURIED, WE BURIED OUR FIRST DAUGHTER AND WHILE WE WERE THERE STANDING THERE, JOE DREW WALKED UP AND I SAID, WHAT ARE YOU DOING HERE? YOU'RE
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SUPPOSED TO BE RUNNING YOUR DEALERSHIP, BUT HE SAID, I'M HERE FOR YOU.AND HE HELD ME WHILE I CRIED HIS, HIS EMPLOYEE, MY HUSBAND AT THE TIME ONLY WORKED THERE FOR THREE YEARS AND HE STILL TOOK THE TIME OUT TO COME AND BE WITH US.
SO I, MY THING IS, I KNOW IT SOUNDS PERSONAL, BUT I'M WONDERING WHAT HAPPENED TO THE NEXT GENERATION.
I'M SEEING SELFISH PEOPLE THAT DON'T EVEN CARE ABOUT, YOU KNOW, THEIR EMPLOYEES OR THEIR, YOU KNOW, THEIR FRIENDS, THEIR NEIGHBORS.
UM, I'M SEEING PEOPLE THAT COME UP HERE AND TALK FOR THEIR OWN REASONS.
SO I HAVE THIS BIG FLYER FOR THE CONCERTS AND I CAN'T WAIT TILL THEY START AND I'D HAVE MY DASH LINED WITH LEMON GROVE, LA MESA, AND EL CAJON CONCERT SERIES SO WE CAN DANCE IN ALL OF THE CITIES.
I LOVE HOW IT'S ON, IT'S ON A SEPARATE NIGHT FOR EACH CITY.
[10. El Cajon Critical Services Sales Tax Measure RECOMMENDATION: That the City Council receives the report, which provides an overview of the survey results for a possible sales tax measure and provides feedback on additional steps to consider, regarding the possible measure.]
TO ADMINISTRATIVE REPORTS AND WE HAVE FOUR ADMINISTRATIVE REPORTS ON TODAY'S AGENDA.ITEM 10 IS A REPORT ON CRITICAL SERVICES TAX MEASURE.
AND I'M GONNA ASK OUR STAFF TO TELL US ABOUT THIS.
THANK YOU MR. MAYOR, MEMBERS OF THE CITY COUNCIL.
IF WE CAN GET MY SLIDE UP, THAT'D BE HELPFUL.
THE INTENT OF THIS REPORT IS TO GIVE A, A PRETTY HIGH LEVEL, UM, OVERVIEW OF SOME OF THE INFORMATION THAT WE'VE BEGAN TO GATHER AND SOME RECOMMENDATIONS OF HOW TO CONTINUE TO GATHER INFORMATION ABOUT WHETHER OR NOT THE CITY OF EL CAJON, UM, SHOULD PLACE A, UH, REPLACEMENT OR A CONTINUATION OF THE PROP J SALES TAX MEASURE.
SO REALLY QUICKLY, AS YOU RECALL, UM, EARLIER THIS YEAR OR EARLIER LAST YEAR OR LATER LAST YEAR, WE PUT OUT A REQUEST FOR PROPOSAL TO KIND OF UNDERSTAND THE COMMUNITY SENTIMENTS TOWARDS AN EXTENSION OF A SALES TAX MEASURE, UH, THROUGH THAT RFP PROCESS, COMPETITIVE EDGE, AND ALSO SOUTHWEST STRATEGIES WAS CHOSEN TO DO THE POLLING AND ALSO HELP THE CITY WITH, UM, PUBLIC INFORMATION SO THAT OUR RESIDENTS HAVE A FULL UNDERSTANDING OF THE IMPACTS OF THIS SALES TAX MEASURE, AS WELL AS TO HELP US UNDERSTAND WHAT THOSE, UM, IMPACTS WILL BE TO OUR RESIDENTS AND ALSO, UM, THE SENTIMENT THAT OUR COMMUNITY HAS.
UM, BEFORE I GO ANY FURTHER, I'M GONNA INVITE JOHN TED, UM, WHO IS FROM COMPETITIVE EDGE TO GIVE, UH, JUST A HIGH LEVEL OVERVIEW OF SOME OF THE OBSERVATIONS THAT CAME ABOUT AS A RESULT OF THE POLLING THAT OCCURRED EARLIER THIS YEAR.
COMPETITIVE EDGE WAS HIRED TO CONDUCT A POLL OF THE, UH, VOTERS IN EL CAJON.
UH, MAYBE SOME OF YOU IN THE AUDIENCE TOOK THE SURVEY.
THANK YOU FOR TAKING IT BY THE WAY.
UM, AND THAT PRODUCE, THAT PRODUCES A, UH, SAMPLING ERROR, MARGINAL SAMPLING ERROR OF PLUS OR MINUS, UH, 3.2%.
I WON'T GET INTO THE DETAILS ABOUT THAT, BUT THIS IS A VERY EXTENSIVE, UH, WELL CONDUCTED SURVEY.
WE CONTACTED FOLKS BY PHONE, BOTH LANDLINE AND CELL.
WE CONTACTED AND INVITED 'EM TO DO THE SURVEY BY EMAIL, AND WE CONTACTED, UH, THEM AND INVITED 'EM TO DO THE SURVEY BY, UH, TEXT.
WE DID THIS MARCH 11TH THROUGH THE 20TH.
EVERY SURVEY IS A SNAPSHOT IN TIME, SO WE SHOULD ALWAYS KEEP THAT IN MIND.
UM, AND, UM, THE TURNOUT MODEL THAT WE USE IS, UH, 60%.
SO THAT MEANS THAT, UH, WE BELIEVE THAT FOR THIS BALLOT MEASURE, ABOUT 60% OF THE VOTERS WILL ACTUALLY PARTICIPATE.
IT COULD BE HIGHER, IT COULD BE LOWER.
NOBODY KNOWS WHAT THE ACTUAL TURNOUT WILL, WILL BE LIKE.
THE, UM, SURVEY WAS DATA WAS, UH, APPROPRIATELY WEIGHTED BASED UPON, UH, MULTIPLE FACTORS TO ENSURE THAT IT MIRRORS THAT 60%, UH, TURNOUT MODEL.
SO THE GOOD NEWS, UH, I THINK EVERYBODY WOULD AGREE AS FAR AS, UM, THE FOLKS WHO ARE PROPONENTS OF THE MEASURE IS THAT THE MEASURE IS WIDELY SUPPORTED.
UM, AND WE FOUND THAT 30% DEFINITELY SUPPORT THE MEASURE AS WE PRESENTED IT TO 'EM.
ANOTHER 36%, 31%, I'M SORRY, WOULD PROBABLY DO SO AND COMBINED THE NOSE WOULD BE AT 27%.
SO THAT'S WHEN WE READ THEM THE, UM, BALLOT MEASURE THAT WAS PRODUCED BY, IN CONCERT WITH, UM, THE CITY MANAGER.
UM, I'M GONNA GO AHEAD AND JUST GIVE YOU SOME HIGH LEVEL THINGS AND THEN IF THERE'S ANY QUESTIONS, I'D BE HAPPY TO TO TAKE ANY, UH, ANY OF THEM AND GIVE YOU THE BEST
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ANSWERS I CAN.SO THE MAIN THING TO KEEP IN MIND AS TO WHY WE'RE GETTING THE NUMBERS THAT WE'RE GETTING IS BECAUSE THE ELCON CRITICAL SERVICES MEASURE IS CONSIDERED TO BE RELATE TO PUBLIC SAFETY AND PUBLIC SAFETY.
UH, THE FIRE DEPARTMENT, THE POLICE DEPARTMENT IS VERY WELL LIKED AND VERY FAVORABLY.
THEIR IMPRESSIONS ARE VERY FAVORABLE OF BOTH THOSE INSTITUTIONS.
AND IT'S SEEN, THE MEASURE IS SEEN AS SOMETHING THAT WILL SUPPORT, UM, THEIR EFFORTS IN THE MAINTAINING SAFETY IN, UM, IN THE, UH, IN THE CITY.
UM, THERE'S MORE TO IT THAN THAT.
WE ALSO ASK FOLKS WHY THEY SUPPORT AND WHY THEY OPPOSE.
CERTAINLY THE IDEA OF A CRITICAL SERVICES MEASURE IS WELL SUPPORTED.
THE SUPPORTERS REALLY FOCUS ON THAT TYPE OF A MEASURE, THAT TYPE OF TERMINOLOGY.
UM, YES, THERE ARE A FEW PEOPLE THAT OPPOSE THE MEASURE.
TYPICALLY THESE ARE, UM, WHAT WE WOULD THINK OF AS ANTI-TAX FOLKS WITH ANTI-TAX SENTIMENT, GENERALLY, NOT NECESSARILY SPECIFIC TO THE, UH, CITY OF EL CAJON.
NOW, WE ALSO TESTED, UH, MEASURE PROVISIONS.
SO THESE ARE THINGS THAT ARE EMBEDDED IN THE MEASURE OR COULD BE EMBEDDED IN THE MEASURE.
WE ALSO TESTED MESSAGES ON BOTH SIDES, SO SUPPORTERS AND OPPONENTS.
AND WE ALSO TESTED MESSENGERS.
SO PEOPLE THAT WOULD ENDORSE OR PEOPLE THAT WOULD IMPOSE THE MEASURE IN ALL THAT WORK.
UH, WE FOUND THAT THE BALLOT MEASURE, ACTUALLY THE RESPONSES, UH, THE OPINIONS OF THE BALLOT MEASURE ACTUALLY IMPROVED, UM, IN WHAT WE WOULD CALL AN INFORMED TEST.
UM, AND THOSE, THOSE NUMBERS WERE ACTUALLY, UH, SLIGHTLY BETTER THAN WHAT WE FOUND IN THE INITIAL TEST.
SO THAT REP REPLICATES AS NEAR AS WE CAN, WHAT A CAMPAIGN MIGHT LOOK LIKE IN A COMPETITIVE ENVIRONMENT WHERE THE OPPONENTS GET THEIR FAIR SHARE OF TIME TO, TO TALK AND COMMUNICATE WITH THE VOTERS.
UM, AND AT THE END WE FIND THAT, UM, THERE ARE ENOUGH, THERE'S ENOUGH SUPPORT FOR THIS, UH, IN MY VIEW TO PROCEED WITH NEXT STEPS, WHICH AS, UM, THE CITY MANAGER OUTLINED WOULD BE A PUBLIC OUTREACH CAMPAIGN.
BE HAPPY TO TAKE ANY QUESTIONS THAT YOU HAVE.
QUESTIONS FOR MR. NEA? SO, BOTTOM LINE, WE JUST WANT TO EXTEND OUR CURRENT TAX RATE AND THAT WAS WELL RECEIVED.
I JUST WANT THE PUBLIC TO UNDERSTAND THAT IT'S NOT AN INCREASE, IT IS JUST STATUS QUO.
COUNCIL MEMBER, THAT'S A VERY IMPORTANT POINT.
ANYBODY ELSE? JOHN? THANK YOU VERY MUCH.
ARE THERE ANY, UM, SPEAKER CARDS ON THE SIDE? MAYOR, LET ME FINISH.
CAN I FINISH MY PRESENT PORTION OF THE PRESENTATION? OH, OF COURSE.
SO I THINK THIS, UM, THE POLLING DATA HELPED US UNDERSTAND THAT THERE WAS A, A POSITIVE RECEPTION FROM THE COMMUNITY.
AND SO IT'S WORTH EXPLORING FURTHER.
UM, A POLL IS JUST THAT, IT'S A SNAPSHOT IN TIME OF PEOPLE'S SENTIMENT.
AND ONE OF THE THINGS THAT WE REALLY LACKED THE LAST TIME WE DID A SALES TAX MEASURE, AS YOU RECALL, IT WAS VERY LAST MINUTE.
IT DIDN'T GIVE US A CHANCE TO REALLY GO OUT AND UNDERSTAND THE COMMUNITY AND TALK TO 'EM ABOUT WHAT, WHAT THEIR NEEDS ARE.
AND SO WE WOULD ACTUALLY RECOMMEND WE DO A COUPLE EXERCISES.
AND THAT'S WHAT I WANTED TO KIND OF FINISH THE PRESENTATION ABOUT.
ONE, I THINK, UM, IT'S IMPORTANT THAT WE ANALYZE MAYBE SOME OF THE SOLUTIONS IN THE EVENT OR SOME OF THE WAYS TO CUT, UM, UH, EXPENDITURES OR TO INCREASE REVENUES IN THE EVENT THAT PROP J DOESN'T HAPPEN.
I THINK THAT'S A, HAVING AN HONEST CONVERSATION WITH OUR COMMUNITY IS SOMETHING IMPORTANT.
SO, UM, STAFF HAS, HAS KINDA LOOKED AT HOW TO REDUCE 16 TO $20 MILLION OUT OF OUR BUDGET OR TO INCREASE REVENUES.
THIS IS VERY PRELIMINARY, VERY EARLY BRAINSTORMING.
IT, IT VERY LIMITED CONVERSATIONS AT THE STAFF LEVEL.
NO CONVERSATIONS AT THE CITY COUNCIL LEVEL, NO COMMUNICATION WITH THE, THE PUBLIC ABOUT IT.
BUT JUST TO GIVE YOU A SENSE OF, OF HOW TO CUT $15 MILLION OUT OF THE BUDGET, IF YOU WANTED TO DO THAT TODAY, IT WOULD BE, UM, REDUCING 10 POLICE OFFICERS, UH, REDUCING OUR NON SWARM POLICE DEPARTMENT BY 10 INDIVIDUALS.
UH, ELIMINATING SEVEN PUBLIC WORKS OPERATORS, CUTTING 25 OTHER POSITIONS OUT OF NON-PUBLIC SAFETY DEPARTMENTS AND ELIMINATING TWO, TWO FOLKS IN THE POLICE DEPARTMENT.
ONE A SWORN FIRE OFFICIAL AND THEN A NON-SWORN.
IT WOULD ALSO MEAN, UH, BROWNING OUT AN ENGINE WHENEVER WE HAD A NEED FOR OVERTIME.
SO RATHER THAN FILLING OVERTIME, WE WOULD JUST BROWN OUT AN ENGINE, UH, GET RID OF NICE THINGS THAT WE LOVE TO HAVE LIKE THE CITY APP
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THAT ONLY SAVES 40,000.BUT THESE ARE THE, WE ARE SCRAPING THE BARREL AS YOU CAN SEE, UH, LEASING OUT TWO OF OUR RECREATION RECREATION CENTERS TEMPORARILY TO CHARTER SCHOOLS OR OTHER ORGANIZATIONS AND GENERATING, GENERATING SOME LEASE FROM THAT.
LEASING OUR OTHER PROPERTIES THAT WE HAVE AROUND THE CITY.
UH, LOOKING AT ACTUALLY GROUND LEASING, ONE OF OUR PARKS FOR PERMANENT HOUSING DEVELOPMENT.
SO WE TAKE A PARK OFF, UM, OUT OF THIS, OUT OF OUR SYSTEM AND TURN IT INTO HOUSING AND GENERATE ONGOING REVENUE FROM THAT INCREASING REV OR FEES.
AND THEN AT THE END OF THE DAY, MAYBE EVEN CONSIDER CONSIDERING A CANNABIS ORDINANCE.
SO THESE ARE KIND OF, AGAIN, REALLY HIGH LEVEL BRAINSTORM.
THESE ARE A LOT OF THINGS THAT WOULD HAVE TO OCCUR TO GET THAT SIMPLE REPLACEMENT OF A SALES TAX MEASURE.
SO, UM, JUST GIVE THE, THE COUNCIL A FLAVOR OF, OF SOME OF THE THINGS THAT WOULD HAVE TO OCCUR.
BUT A LOT OF THAT WOULD BE, UM, AFFECTING STAFF.
AND AT THE END OF THE DAY, WE ARE A SERVICE INDUSTRY AND SO THAT MEANS A REDUCTION, THE LEVELS OF STAFF, UM, SERVICES THAT ARE PROVIDED TO OUR RESIDENTS.
UM, WHAT I WOULD RECOMMEND FROM MOVING FORWARD AT THIS POINT IS THAT THE CITY COUNCIL GIVE SOME DIRECTION ON WHETHER TO HAVE SOME LISTENING SESSIONS AND I WOULD RECOMMEND THOSE BE IN THE FORM OF TOWN HALLS, INTERACTIVE TOWN HALLS, JUST LIKE WE DID WITH THE, THE HOMELESS TOWN HALLS THAT IT WAS, IT WAS ROLL UP YOUR SLEEVES AND, AND PEOPLE WERE ENGAGED.
IT WASN'T ONE-SIDED COMMUNICATION, BUT IT WAS AN OPPORTUNITY TO REALLY DIVE INTO SOME ISSUES AND REALLY HEAR FROM OUR RESIDENTS.
SO I'D RECOMMEND THAT WE DO THOSE OVER THE SUMMER.
UM, AS WELL AS SOME OTHER EDUCATIONAL CAMPAIGN INFORMATION, UM, SHARING.
AND THEN WE WOULD FOLLOW UP WITH ANOTHER POLL TO SEE, UM, HOW OUR RESIDENTS CONTINUE TO FEEL ABOUT IT.
IF, IF IT STILL LOOKS POSITIVE AT THAT POINT, STAFF WOULD RECOMMEND TO THE CITY COUNCIL THAT WE PUT IT ON THE NOVEMBER BALLOT.
IF IT DOESN'T LOOK FAVORABLE, THAT'S WHEN STAFF WOULD START THINKING ABOUT WHAT ARE SOME CUTS THAT WE COULD BEGIN TO MAKE NOW GEARING UP KNOWING THAT THERE'S STILL TWO BITES AT THE APPLE STILL.
'CAUSE THERE'S TWO MORE ELECTIONS THAT WOULD OCCUR AFTER NOVEMBER, 2024.
BUT AS YOU SAW ON THAT LIST, THERE'S A LOT OF THINGS THAT JUST CAN'T HAPPEN OVERNIGHT.
THERE ARE THINGS THAT WE'D HAVE TO RAMP UP FOR AND SO WE'D PROBABLY START REDUCING STAFFING BY THROUGH SOME ATTRITION RATHER THAN HAVING TO LAYOFFS.
UM, SO WE COULD START GEARING UP FOR THAT IN THE EVENT OF, UH, THE MEASURE NOT BEING EXTENDED.
SO WITH THAT STAFF'S HERE TO GET ANY DIRECTION FROM THE COUNCIL ON WHETHER YOU LIKE THE DIRECTION THAT WE'RE RECOMMENDING IN TERMS OF THE LISTENING SERIES AND ALSO FOLLOWING UP WITH ANOTHER POLL AND ANY INFORMATION THAT YOU THINK SHOULD BE SHARED WITH THE COMMUNITY.
SO WITH THAT, I'M HERE TO TAKE ANY FEEDBACK AND MAYBE NOW'S A GOOD TIME, MR. MAYOR TO HEAR FROM THE PUBLIC.
WE HAVE NO SPEAKER CARDS, SIR.
UH, IT'S BACK TO COUNCIL FOR QUESTIONS, FOR GRANT QUESTIONS.
UM, WELL I THINK WE'RE LOOKING JUST FOR A MOTION THEN TO ACCEPT THE REPORT.
UH, ACTUALLY GRAHAM, YOU'RE LOOKING FOR A LITTLE FEEDBACK ON THE TOWN HALLS.
IS THAT SOMETHING THE COUNCIL WOULD, I THINK WOULD WANNA DO? I'M ASSUMING EVERYBODY WOULD BE FINE WITH THAT.
YEAH, I THINK, UM, WE DON'T TAKE THESE THINGS LIGHTLY AND HEARING FROM THE PUBLIC IS SOMETHING VITAL WHENEVER WE'RE DISCUSSING ANY KIND OF SALES TAX MEASURES.
SO I THINK THE EDUCATION CAMPAIGN AS WELL AND A FOLLOW UP POLL.
AND BILL, YOU KNOW THAT 70% OF OUR BUDGET GOES TO PUBLIC SAFETY POLICE, FIRE PARAMEDICS.
AND I THINK PEOPLE NEED TO KNOW THAT WITH, WITHOUT THE SALES TAX EXTENSION, THAT WE WOULD HAVE TO CUT BACK ON POLICE, FIRE AND PARAMEDICS.
AND I SURE WOULDN'T WANNA WAIT ANOTHER 10 MINUTES FOR THE ANIMALS TO COME TO GET ME IF I HAD A HEART ATTACK.
THE EDUCATION IS IMPORTANT THROUGH TOWN HALLS BECAUSE A TYPICAL SALES TAX MEASURE IS AN ADDITION AND, UH, YOU'RE ADDING A SALES TAX.
AND SO YOU'RE DOING THAT TO GET, UH, THESE, THIS MORE THAN WHAT YOU HAVE TODAY.
UH, WE'RE NOT ASKING FOR, UH, ANY NEW THINGS.
WE'RE SAYING, UH, WE WANT TO KEEP WHAT WE HAVE AND THE EDUCATION IS THIS IS WHAT WE WILL LOSE IF WE DON'T, UH, CONTINUE THEIR CURRENT SITUATION.
SO I THINK WHAT, UM, IF IT'S OKAY WITH THE COUNCIL, WHAT I WOULD RECOMMEND IS WE ACTUALLY DO A TOWN HALL IN EACH OF YOUR DISTRICTS.
AND SO WE'LL, WE'D HAVE FOUR DIFFERENT TOWN HALLS AT A MINIMUM.
UM, AND WE MAY EVEN DO SOME SPECIALIZED ONES LIKE WE DID WITH THE HOMELESS, UH, EFFORT AND OUTREACH EFFORT.
SO, UH, WE'LL GET THOSE START WORKING WITH YOU ON YOUR CALENDARS AND GETTING SOME THINGS
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SCHEDULED.THANKS GRAHAM, APPRECIATE THAT.
UM, UH, LET'S JUST GO AHEAD AND TAKE A VOTE ON ACCEPTING THE REPORT.
I AM SORRY, I AM MISSING A VOTE, SO I'M GONNA CLEAR, I'M GONNA RESET THE VOTE AND IT IS READY FOR YOU AGAIN.
ALRIGHT, MOTION CARRIES BY UNANIMOUS VOTE.
THANKS, UH, MR. YOU SAID THANK YOU VERY MUCH AND LOOK FORWARD TO WORKING WITH YOU IN THE FUTURE.
UH, WE'RE GONNA JUMP AROUND A LITTLE BIT AND, UM, WE'RE GONNA GO TO I ITEM
[13. Lease Agreements with the Chaldean Community Council to Operate a Social Service Operation and a Small Business Incubator Program at 405 E. Lexington Avenue RECOMMENDATION: That the City Council adopts the next Resolution, in order, approving two lease agreements: Lease Agreement with the Chaldean Community Council for 4,155 square feet at 405 E. Lexington Avenue to provide social services; and Lease Agreement with the Chaldean Community Council for 3,000 square feet at 405 E. Lexington Avenue to operate a small business incubation program. ]
13, WHICH IS A LEASE AGREEMENT WITH THE CHALDEAN COMMUNITY OF THE COUNCIL TO OPERATE A SOCIAL SERVICE OPERATION IN SMALL BUSINESS INCUBATOR PROGRAM.AND, UH, BEFORE I ASK OUR CITY MANAGER TO TELL US ABOUT THIS, I HA HAVE TO, UH, ANNOUNCE IT, UM, BECAUSE OF STATE LAW ABOUT, UH, POLITICAL CAMPAIGN CONTRIBUTIONS, I HAVE TO RECUSE MYSELF FROM THIS ISSUE.
I'M GONNA ASK, UH, PHIL DEPUTY MAYOR PHIL ORTIZ TO TAKE IT FROM HERE AND I'LL COME BACK AFTER THE VOTE.
UM, I'LL LET STAFF INTRODUCE THIS ITEM.
THANK YOU, MR. DEPUTY MAYOR AND MEMBERS OF THE CITY COUNCIL.
UM, STAFF, UH, AS, AS THE CITY COUNCIL RECALLS, UH, NEAR THE END OF JANUARY, EARLY FEBRUARY, THE CITY CLOSED ESCROW AT 4 0 5 EAST LEXINGTON AVENUE.
UH, CITY PURCHASED THE BUILDING FOR ABOUT $2.5 MILLION.
AND THE EXISTING TENANT, WHICH WAS THE CHALDEAN COMMUNITY COUNCIL, WAS THERE.
AND WE'VE BEEN WORKING WITH THEM AND DEVELOPING A LEASE AGREEMENT FOR TWO SPECIFIC LEASES.
AND THAT'S WHAT STAFF'S HERE TO PRESENT THIS AFTERNOON.
UH, THE BUILDING IS A LITTLE OVER 7,000 SQUARE FEET, AND SO THERE'S A FIRST AND A SECOND FLOOR.
SO THE THOUGHT WOULD BE THAT THE ONE, ONE OF THE LEASES WOULD BE WITH COMMUNITY, UH, C COMMUNITY COUNCIL FOR THE GROUND FLOOR A LITTLE BIT ON THE SECOND FLOOR, COMPRISING A LITTLE OVER 4,000 SQUARE FEET.
AND THAT WOULD REALLY BE FOR THE, THE SOCIAL SERVICES THAT THEY PROVIDE, INCLUDING THE KAL RADIO PROGRAM AND OTHER MARKETING EFFORTS THAT THEY, UH, ARE ENDEAVORED WITHIN OUR COMMUNITY.
THE SECOND LEASE AGREEMENT WOULD BE FOR THE BUSINESS INCUBATOR, WHICH IS ABOUT 3000 SQUARE FEET, ALSO LOCATED ON THE SECOND FLOOR.
UM, IN TERMS OF, UH, THE SPECIFICS OF THE AGREEMENT, THEY'RE ATTACHED FOR YOUR REVIEW, BUT IT WOULD BE A $1 PER YEAR LEASE.
UH, THE TENANT WOULD BE REQUIRED TO MAINTAIN A TWO, A $25,000 SECURITY DEPOSIT.
IN THE EVENT OF OTHER THINGS OR DEFAULTS OR OTHER ISSUES THAT NEED TO BE RESOLVED WITH THE BUILDING.
THE, THEY'D BE RESPONSIBLE FOR ANY BASIC REPAIRS IN THE GENERAL MAINTENANCE OF THE BUILDING.
THERE WOULD BE AN ENFORCEMENT OF THE NO SMOKING POLICY IN THE CITY, IN THE STATE OF CALIFORNIA.
THEY WOULD BE RESPONSIBLE FOR 60% OF THE UTILITIES, UH, COVER, HAVE INSURANCE, AND THEY'D ALSO HAVE ANY POSSESSORY INTEREST TAX LIABILITY.
THE CITY WOULD ALSO BE RESPONSIBLE FOR, FOR, FOR ENSURING THAT THE STRUCTURAL AND MECHANICAL SYSTEMS ARE IN WORKING ORDER.
AND WE WOULD INITIATE SOME OF THE BUILDING REPAIRS THAT WE HAVE GONE THROUGH WITH THEM.
AND I'VE, I'VE PRELIMINARILY IDENTIFIED NEEDING TO OCCUR TO BRING THE BUILDING UP TO CODE.
UM, THE AGREEMENT ALSO INCLUDES AN EARLY TERMINATION CLAUSE, ALLOWING THE CITY TO TERMINATE THE AGREEMENT WITH SIX MONTHS WRITTEN NOTICE.
IN TERMS OF THE BUSINESS INCUBATOR, AS YOU RECALL, LAST YEAR, THE CITY RELEASED A REQUEST FOR PROPOSAL TO INTERESTED PARTIES THAT WOULD OPERATE A SMALL BUSINESS INCUBATOR.
THE CALD CHALDEAN COMMUNITY COUNCIL WAS THE ONLY ENTITY THAT PRESENTED A PROPOSAL.
UH, IT WAS REVIEWED BY THE CITY COUNCIL AND THE CITY COUNCIL DIRECTED US TO LOOK FOR AN OPPORTUNITY TO WORK WITH THEM.
THE ONE WAY THAT WE CAN WORK WITH THEM IS PROVIDING THEM ABOUT 3000 SQUARE FEET OF SPACE AT NO COST.
AND, UH, UNDER THIS LEASE AGREEMENT, THEY WOULD HAVE SOME OF THE SAME REQUIREMENTS AS THE SOCIAL SERVICES PART, ALTHOUGH THERE WOULD BE AN ACTIVITY REPORTING ASPECT.
UM, WE WOULD REQUIRE THAT 75% OF THE BUSINESSES THAT THEY ARE, THAT PARTICIPATE IN THE INCUBATOR PROGRAM WOULD HAVE A EL CAJON CONNECTION AND THAT THERE'S SOME CONFLICT OF INTEREST CLAUSES AS WELL.
SINCE THE, UM, LEASE AGREEMENT WERE PUT OUT FOR COUNCIL REVIEW, WE RECEIVED A COUPLE QUESTIONS AND I'D LIKE TO RECOMMEND SOME ADDITIONAL MODIFICATIONS TO THE AGREEMENT.
ONE HAS TO DO WITH JUST DEFINING WHAT UTILITIES MEANS, AND I THINK THAT'S IMPORTANT THAT WE UNDER, WE'RE ALL ON THE SAME PAGE.
'CAUSE WHAT A UTILITY MAY BE TO ME MAY NOT BE WHAT, TO WHAT THE ASSISTANT CITY MANAGER MAY THINK IT TO BE.
[00:35:01]
INCLUDE WATER, SEWER, TRASH, UH, GAS AND ELECTRICITY.UM, WE ALSO THINK THAT MAYBE THERE SHOULD BE SOME MORE SPECIFICS WHEN IT COMES TO THE ACTIVITY REPORTING, WHERE WE WOULD HAVE THE INCLUSION OF CONTACT INFORMATION.
SO IN THE EVENT WE WANTED TO CONTACT THEM TO SEE IF THERE WAS OTHER OPPORTUNITIES TO EITHER ASSIST THOSE BUSINESSES OR TO UNDERSTAND THEIR EXPERIENCE IN THE PROGRAM.
AND THEN WE WOULD ALSO, UM, THINK THAT THERE'S SOME VALUE IN EXTENDING THE CONFLICT OF INTEREST, NOT ONLY WHILE THEY PARTICIPATE IN THE PROGRAM, BUT WITHIN A YEAR AFTER THEM GRADUATING.
SO THAT THERE'S, UM, THERE, THERE'S A DISTINCT THE DISTINCTION BETWEEN BOARD MEMBER PARTICIPATION AND OWNERSHIP.
SO THOSE ARE THREE THINGS THAT WE WOULD RECOMMEND CHANGING, UM, TO THE EXISTING AGREEMENTS THAT YOU SEE BEFORE YOU THIS AFTERNOON.
SO STAFF'S HERE TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE, BUT WE, UM, HAVE, UH, ONE RESOLUTION THAT WOULD ADOPT BOTH OF THE LEASES.
ONE TO PROVIDE THE SOCIAL SERVICES AND THEN THE OTHER TO PROVIDE THE SMALL BUSINESS INCUBATOR SERVICES.
SO WITH THAT, STAFF'S HERE TO ANSWER ANY QUESTIONS OR TO TAKE ANY DI ADDITIONAL DIRECTION.
UH, COUNSEL, ANY QUESTIONS FOR THE CITY MANAGER ON THE DETAILS OF THE LEASE? ANY COMMENTS, BUT WE'LL, WE'LL SAVE COMMENTS FOR LATER.
LET'S DO, UH, ANGELA, DO WE HAVE ANY SPEAKER CARDS? WE DO, SIR.
THE FIRST ONE IS FROM KAY TURPEN.
THANK YOU FOR GIVING ME AN OPPORTUNITY TO BE HEARD TODAY.
UM, IN MY PROFESSIONAL LIFE, I WORK AS A DEPUTY DISTRICT ATTORNEY HERE IN THE COUNTY OF SAN DIEGO.
BUT IN MY PERSONAL LIFE, I WORK AS A VOLUNTEER FOR THE CALVIN COMMUNITY COUNCIL AND I SERVE AS THE SECRETARY ON THE BOARD OF DIRECTORS.
UM, AS MR. MITCHELL KNOWS, WE HAVE BEEN IN EXTENSIVE COMMUNICATIONS WITH THE CITY OVER THE LEASE AGREEMENT AND GETTING THE BUILDING.
AND IN OUR INITIAL TALKS WITH THE CITY, WE STARTED OUT WITH TRYING TO GAIN OWNERSHIP OF THE BUILDING AND THAT WAS THE HOPE AND THAT WAS THE GOAL.
BUT WE LATER LEARNED, UM, THAT THAT WAS NOT GOING TO BE AN OPTION, SO THAT WE WERE GOING TO DO A LEASE.
AND WE HAD ALWAYS DISCUSSED AND HOPED FOR A FIVE YEAR LEASE.
BECAUSE WE ARE A NEW NONPROFIT ORGANIZATION, WE ARE CENTRAL TO THE EL CAJON COMMUNITY.
AND AS YOU ARE WELL AWARE, THE CALEN COMMUNITY, CALEN COMMUNITY HERE IN EL CAJON IS 50,000 STRONG.
AND THOSE ARE PRIMARILY THE PEOPLE WHO NEED SOCIAL SERVICES IN THIS NEIGHBORHOOD, UM, WHO DON'T SPEAK THE LANGUAGE AND FACE CERTAIN CHALLENGES JUST ASSIMILATING.
UM, AFTER WE REALIZED WE WEREN'T ABLE TO OWN THE BUILDING, WE STARTED NEGOTIATING THE CONTRACT FOR THE LEASE AND IT WAS ALWAYS GOING TO BE A FIVE YEAR LEASE.
AND WE TRIED VERY HARD TO GET A LONGER TERM, BUT WE UNDERSTAND THAT THERE WAS SOME RESISTANCE ABOUT THAT.
AND SO WE HAVE ACTUALLY SIGNED A LEASE THAT STIPULATED THAT IT WAS A FIVE YEAR TERM.
UH, WE RECENTLY HELD A LAUNCH PARTY, AND I BELIEVE MANY OF YOU WERE PRESENT WHERE WE WERE ABLE TO SING YOUR PRAISES AND TALK TO THE COMMUNITY ABOUT WHAT A WONDERFUL OPPORTUNITY IT WAS TO COLLABORATE WITH THE CITY AND GET THIS SPACE FOR THE NEXT FIVE YEARS TO BE ABLE TO EXPAND ON THE SOCIAL SERVICES AS WELL AS ESTABLISHED THE EL CAJON SMALL BUSINESS INCUBATOR.
UM, WE ALSO RECEIVED A $500,000 GRANT FROM MR. UH, SUPERVISOR JOEL ANDERSON, IN HOPING THAT WE ESTABLISH THE SMALL BUSINESS INCUBATOR AND THAT WOULD BE BENEFICIAL TO THE CITY BY INCREASING REVENUES, CREATING BUSINESSES HERE IN THE CITY, UM, GAINING EMPLOYMENT FOR FOLKS WHO NEED JOBS.
UM, HOPEFULLY NOT HAVE TO FORCE THE BUDGET CUTS OF FIRING 10 POLICE OFFICERS AND OTHER CITY EMPLOYEES.
UM, WE RECENTLY LEARNED AFTER SIGNING THAT CONTRACT, THE LEASE AGREEMENT THAT THE CITY COUNCIL, THAT I BELIEVE MR. MITCHELL IS SUGGESTING THAT THERE IS A SIX MONTH TERMINATION WITHOUT CAUSE.
SO WHAT WE'VE DONE IS ESSENTIALLY CREATED A FIVE YEAR LEASE AND HAVE TURNED IT INTO A SIX MONTH ROLLING LEASE.
AND THAT WAS THE MAIN POINT OF CONTENTION THAT WE'RE REALLY FIGHTING FOR.
AS YOU ESTABLISH AN ORGANIZATION, YOU REALLY NEED TIME AND YOU'RE INVESTING IN PEOPLE AND YOU'RE INVESTING IN THE COMMUNITY.
AND THE MONEY THAT WE ARE GETTING IS BEING USED TO INVEST ON OUR SOCIAL SERVICES AND EXPAND ON THAT.
AND TO TAKE THE FIVE YEAR OPTION AND SAY NOW THE CITY COUNCIL HAS THE OPPORTUNITY TO TERMINATE AFTER SIX MONTHS WITHOUT ANY REASON WHATSOEVER, IS REALLY UNDERMINING ALL OF THE NEGOTIATIONS THAT WE HAD.
UM, PART OF THE GOAL OF THE SMALL BUSINESS INCUBATORS IS TO CREATE BUSINESSES THAT ARE GOING TO STAY IN EL CAJON.
[00:40:01]
IS TO IMPROVE EL CAJONS ECONOMY AND GET PEOPLE TO BRING MONEY INTO THE, INTO THE CITY AND BRING JOBS.AND WE ARE DOING THAT WITH THE CITY, THE CITY'S INTEREST.
I BELIEVE ALL COUNCIL MEMBERS WOULD BE IN SUPPORT OF THAT IDEA AS TO CREATE MORE BUSINESSES AND CREATE MORE REVENUE.
AND TO GIVE THE CITY COUNCIL NOW THE OPTION TO BASICALLY TELL US WE MUST LEAVE THE BUILDING WITH ONLY SIX MONTHS NOTICE IS REALLY IT, IT APPEARS DISINGENUOUS.
AND SO WHAT WE'VE ALWAYS WANTED IS JUST A FIVE YEAR TERM.
WE WOULD TAKE A LONGER TERM IF WE COULD, BUT WE UNDERSTAND THAT WE WERE ABLE TO MEET IN THE MIDDLE AND AGREE TO FIVE YEARS.
AND IT WAS ONLY A WEEK AFTER WE DISCLOSED TO MEDIA ALL OF THE WONDERFUL THINGS THAT THE CITY'S DOING AND HOW THIS IS SUCH A COLLABORATION THAT WE'VE LEARNED THAT THE CITY NOW HOPES TO BE ABLE TO TERMINATE AFTER JUST A SIX MONTH PERIOD OF TIME.
UM, GIHAN, UM, I'M, YOUR TIME HAS EXPIRED, BUT YOU CAN KEEP GOING FOR A LITTLE BIT LONGER.
IT'S BASICALLY, I'M JUST TRYING TO SAY THAT, THAT WE HOPE THAT YOU DO THE RIGHT THING AND HONOR THE COMMITMENT THAT, THAT WE ALL KIND OF AGREED TO AT THE BEGINNING AND THAT WE KEEP THIS A COLLABORATION RATHER THAN AN OPPORTUNITY FOR SEPARATION.
DO WE HAVE ANY OTHER SPEAKERS? YES, SIR.
THE SECOND SPEAKER IS KAY TURPEN.
GOOD AFTERNOON, MEMBERS OF THE COUNCIL.
UH, I DO BUSINESS DEVELOPMENT AND COMPLIANCE FOR THE COMMUNITY COUNCIL.
UM, WE DO FEEL, UH, A LITTLE BLINDSIDED BY THIS LAST MINUTE EDITION.
UH, BOTH JOHAN AND MYSELF SPENT HOURS AND HOURS, UH, NEGOTIATING THE TERMS OF THE ORIGINAL LEASE WITH MEMBERS OF THE COUNCIL.
UM, THESE DISCUSSIONS HAD NEVER TAKEN PART DURING THE, THE MONTHS, UM, THAT WE WERE REVIEWING THE TERMS AND DISCUSSING THIS ACQUISITION.
UM, BUT I'M HERE TODAY TO TALK A LITTLE BIT ABOUT THE CHALDEAN COMMUNITY COUNCIL AND THE CHALDEAN COMMUNITY AT LARGE.
UM, AS YOU KNOW, I'M A CONTRACTED CONSULTANT.
UM, I'VE REALLY ENJOYED WORKING WITH THE CHALDEAN COMMUNITY COUNCIL OVER THE PAST FEW MONTHS, AND I'VE LEARNED QUITE A BIT ABOUT THE COMMUNITY AND WHAT THEY OFFER TO THE CITY OF EL CAJON.
THERE ARE OVER 250 BUSINESSES IN THE CITY OF EL CAJON.
THERE ARE 6,000 STUDENTS THAT ARE ENROLLED IN THE CAJON VALLEY SCHOOL DISTRICT.
AND BETWEEN THE THREE CHURCHES HERE WHO REPORT TO THE DIOCESE, THERE ARE 10,000 FAMILY MEMBERS, UM, 10,000 FAMILIES THAT ARE MEMBERS OF THE CHURCH THAT REPORT TO THE DIOCESE THAT THERE'S AN ADDITIONAL 50,000 PEOPLE LIVING WITHIN THE CITY.
WE ESTIMATE THAT APPROXIMATELY 25% OF THE POPULATION SPEAKS ARABIC.
WE HAVE A FACEBOOK ACCOUNT WITH OVER 80,000 FOLLOWERS, AND WE HAVE BEEN WORKING WITH YOUR CITY POLICE DEPARTMENT FOR MANY YEARS, POSTING PUBLIC INFORMATION, TRYING TO BE A GOOD STEWARD OF RESOURCES FOR THE POPULATIONS THAT WE SERVE.
AND EVEN TODAY POSTED AN ATTEMPT TO LOCATE TO OUR 80,000 FOLLOWERS.
WE FEEL THAT UP UNTIL THIS POINT WE'VE HAD A GREAT WORKING RELATIONSHIP WITH THE CITY.
THERE IS A SENSE OF BETRAYAL AMONG US FOR THIS LAST MINUTE EDITION.
I HOPE THAT THIS IS NOT GOING TO, UM, BE INCLUDED IN OUR LEASE.
AS JOHAN SAID, IT'S COUNTERPRODUCTIVE TO HAVE A FIVE YEAR LEASE AND THEN HAVE A SIX MONTH NOTICE TO VACATE.
THE REASONS THAT WE WERE GIVEN FOR THE VACATE WAS THAT IF YOUR TAX INITIATIVE DIDN'T PASS OR THE ECONOMY GOT WORSE, YOU WOULD NEED TO RECLAIM THIS ASSET TO BALANCE YOUR BUDGET.
WE DON'T WANNA BE IN A POSITION WHERE, UH, ANY OF YOUR TAX INITIATIVES ARE GOING TO AFFECT OUR EFFORTS TO PROMOTE SMALL BUSINESS IN THIS COMMUNITY OR TO HELP PEOPLE IN NEED.
I WANT YOU TO KNOW THAT SINCE I'VE BEEN WORKING FOR THE CHALDEAN COUNCIL, I HAVE VISITED THEIR CHURCHES NUMEROUS TIMES.
I HAVE MADE HOME VISITS TO THE SENIOR POPULATIONS WHO NEED MEALS.
I HAVE, UH, PERSONALLY INTERVIEWED AND SCREENED INDIVIDUALS WHO NEED RENTAL ASSISTANCE AND THE SERVICES THAT THEY PROVIDE TO THIS COMMUNITY ARE INVALUABLE.
IT WOULD MAKE NO SENSE WHATSOEVER IF THE ECONOMY GOT WORSE TO SHUT DOWN THESE SOCIAL SERVICES, IT WOULD HAVE A DEVASTATING EFFECT ON THIS COMMUNITY.
AND FOR THIS REASON, I URGE YOU NOT TO CONSIDER ADDING THIS CLAUSE TO THE LEASE AGREEMENT.
ANGELA, NO OTHER SPEAKER CARD, SIR.
SO, UM, IT GOES BACK TO US COUNSEL.
UM, DOES ANYONE WANNA MAKE A COMMENT? STEVE? THANK YOU, MR. DEPUTY MAYOR, I HAVE SOME QUESTIONS AND UH, WE CAN INVITE BACK UP WHOEVER WANTS TO ANSWER THE QUESTIONS.
THE, UH, HOW LONG HAS THE CCC BEEN OPERATION? I'M HEARING THERE'S TWO THINGS I'M HEARING.
CC OPERATION, I'M HEARING INCUBATOR.
INCUBATOR, WE KNOW IS A STARTUP, BUT THE CCC HAS BEEN AROUND OPERATING FOR HOW LONG? THE CAL COMMUNITY COUNCIL
[00:45:01]
RECEIVED THEIR 5 0 1 C3 LICENSE IN 2017 UNDER CAL AND RADIO.THEY HAVE DONE A, AN OFFICIAL NAME CHANGE, UH, ONCE THEY MADE THE ADDITION OF THEIR SOCIAL SERVICES, WHICH WAS DURING COVID.
SO ON THE, UH, BOTH LEASES ONE LEASE FOR THE CCC ONE LEASE FOR THE LEASES, UH, INCUBATOR.
ARE YOU PROPOSING THAT THE COUNCIL TAKE OUT THE EARLY TERMINATION RIGHTS IN BOTH LEASES? I'M URGING YOU TO DO SO, PLEASE.
ONE OF THE THINGS WE HAVE TO DO AS A COUNCIL IS BALANCE EVERYBODY'S, UH, INTEREST.
SO IN THIS CASE, THE PUBLIC IS ONLY CHARGING A DOLLAR A YEAR FOR RENT.
IN FACT, YOU HAND A $5 BILL OVER, YOU COULD GET FIVE YEARS WORTH OF RENT OUT OF THAT.
HOW DO I BALANCE, AND MAYBE THIS IS FOR THE ASSISTANT C MANAGER.
THIS IS PROBABLY CLASS C PROPERTY COMMERCIAL.
UM, A DOLLAR A FOOT, BUT I MEAN, IT'S BEEN A WHILE SINCE I'VE, I'VE BEEN IN THAT WORLD.
BUT YES, I, I THINK THAT'S PROBABLY ACCURATE.
A BUCK A FOOT AND LET'S SAY THE INCUBATOR'S 3000 SQUARE FEET.
SO THE PUBLIC IS GIVING YOU ESSENTIALLY FREE SPACE.
AND BY THE WAY, THE PUBLIC INCLUDES, IN MY VIEW, FROM THE AMERICAN COMMUNITY SURVEY, WHICH IS A PART OF THE CENSUS.
UH, 20% OF PEOPLE WHO ARE NOT HISPANIC, 20% SPEAK, PROBABLY MIDDLE EASTERN LANGUAGE AT HOME.
SO I'M SAYING A ONE IN FIVE EL CAJON.
PEOPLE ARE FROM MIDDLE EAST, NORTHERN AFRICA, THOSE KIND OF THINGS.
SO, UH, SO I RECOGNIZE WHEN I TALK ABOUT THE PUBLIC, THAT INCLUDES EVERYBODY INCLUDING THE PARTIES TODAY.
SO $3,000 A MONTH TIMES 12 MONTHS IS $36,000 A YEAR.
FREE RENT FOR FIVE YEARS IS $180,000.
THE PUBLIC IS GIFTING TO CAL COMMUNITY SERVICES IN EXCHANGE FOR THE SOCIAL SERVICES THAT PROVIDES TO AT LEAST 20% OF EL CAJON AND $180,000 IN RENT TO THE INCUBATOR, WHICH WE HOPE DOES 75% PEOPLE WHO ARE IN EL CAJON.
SO WE HAVE TO BALANCE GETTING VALUE FOR THAT $180,000.
AND I THINK I'M OKAY WITH TAKING OUT THE SIX MONTH REQUIREMENT ON THE SOCIAL SERVICES SIDE BECAUSE IT'S AN ESTABLISHED, UH, CLEARLY POPULAR SERVICE TO 20% OF OUR RESIDENTS, AT LEAST ON THE INCUBATOR SIDE.
MY QUESTION IS, WHAT IF THERE ISN'T THE DEMAND, THE APPLICATIONS FOR THE INCUBATOR, DO WE CONTINUE TO PROVIDE A FREE SPACE THAT HAS LOW USAGE? MY UNDERSTANDING, COUNCILMAN, IS THAT THE, THE FUNDING THAT YOU USE TO ACQUIRE THE ENTIRE BUILDING, BOTH SOCIAL SERVICES AND INCUBATOR SPACE, WAS ACTUALLY NOT CITY FUNDED.
IT WAS ARPA MONEY THAT WAS GIVEN TO YOU BY THE FEDERAL GOVERNMENT, SPECIFICALLY FOR THE PURPOSES OF ECONOMIC DEVELOPMENT TO THE TUNE OF $2.7 MILLION.
UM, AND SO TO TO THE, TO THE CONCERN THAT YOU ARE ACCOUNTABLE TO THE, TO THE TAXPAYERS EL CAJON, I WOULD SAY IF YOU DON'T SPEND THAT MONEY, MY UNDERSTANDING IS THAT IT WOULD HAVE TO GO BACK TO THE FEDERAL GOVERNMENT.
IS THAT CORRECT? THAT'S CORRECT.
SO WHAT WHAT WE'RE DOING IS COLLABORATIVELY WE'RE MAKING AN INVESTMENT IN THE CITY OF EL CAJON WITH FEDERAL COVID DOLLARS THAT WOULD OTHERWISE BE RETURNED TO THE FEDERAL GOVERNMENT.
UM, I TO YOUR SECOND QUESTION, I FEEL VERY COMFORTABLE WITH GRAHAM'S SUGGESTION THAT WE HAVE MILESTONES THAT WE HAVE TO MEET WITH THE BUSINESS INCUBATOR.
THAT WAS NEVER A POINT OF DISCUSSION OR CONTENTION IN OUR LEASE AGREEMENT.
WE ARE VERY COMFORTABLE PROVIDING 75% OF THOSE NEW BUSINESSES WITHIN THE CITY OF EL CAJON AND ALL OF THE OTHER REPORTING STIPULATIONS THAT WERE PUT IN PLACE.
UM, THE SOCIAL SERVICES ASPECT OF IT IS DIFFERENT BECAUSE AS AN OUTSIDER, I'M LOOKING AT WHAT THE CHALDEAN COMMUNITY HAS DONE FOR YOUR BELOVED CITY.
AND THEY HAVE CONTRIBUTED FAR MORE THAN THEY HAVE TAKEN OVER THE PAST FEW YEARS.
AND I'M IN THAT FACILITY TWO DAYS A WEEK.
AND I THINK THAT THEY'RE GIVING FAR MORE THAN THEY'RE ASKING IN RETURN.
MY QUESTION WAS, AND STILL IS, WHAT IF THE PUBLIC DOESN'T SHOW THE DEMAND FOR THIS KIND OF INCUBATOR SERVICE? SHOULD WE USE THAT SPACE FOR SOMETHING ELSE? FOR THE TAXPAYER'S BENEFIT? I, I SUPPOSE AT THE END OF THE FIVE YEAR LEASE AGREEMENT, YOU'LL HAVE TO MAKE THAT DECISION.
TODAY WE'RE MORE CONCERNED WITH ADDING A SIX MONTH NOTICE TO VACATE.
WHAT IF THE EVERYTHING ELSE HAS BEEN NEGOTIATED, DISCUSSED AD NAUSEUM.
WE'VE BEEN HERE, YOU'VE BEEN BEHIND CLOSED DOORS, NOT ONCE, BUT TWICE.
AND THEN WE HAD THIS LAST MINUTE ADDITION TO THE LEASE, UM, WHICH REALLY BLINDSIDED US.
SO YOU'RE SAYING IF THE SERVICE ISN'T POPULAR WITH THE PUBLIC, WE HAVE
[00:50:01]
TO ENDURE FIVE YEARS.I'M SAYING IF YOU HAVE CONCERNS ABOUT THAT, YOU SHOULD PROBABLY PUT ANOTHER PROVISION IN THE LEASE.
BUT A SIX MONTH NOTICE TO VACATE IS NOT THE RIGHT PROVISION.
WHAT'S YOUR SUGGESTION FOR A PROVISION? WELL, WE WOULD NEED A LITTLE MORE TIME TO DISCUSS THAT.
I DON'T KNOW THAT I COULD ANSWER THAT ON BEHALF OF MY CLIENT.
MAY I COACH? MAY I? YES, SURE.
I'M, I'M LOOKING FOR THE ANSWER TO THE QUESTION.
WHAT IF THE PUBLIC JUST SAYS, YOU KNOW, THE DEMAND'S NOT THERE? WELL, WELL, SOMETHING TO CONSIDER IS THAT I DON'T THINK YOU'RE GONNA BE ABLE TO MAKE THAT DECISION IN A SIX MONTH PERIOD OF TIME.
THIS TYPE OF ORGANIZATION REQUIRES, I WOULD SAY AT LEAST A YEAR TO ESTABLISH, YOU KNOW, PRO PROCEDURES PROTOCOLS.
THIS IS THE VERY START OF WHAT WE'RE DOING.
SO THERE'S GOING TO BE SOME TIME TO BUILD THE ORGANIZATION, GET OUR NAME OUT THERE, GET PEOPLE AWARE OF WHAT WE'RE DOING.
IT'S GONNA TAKE MORE TIME THAN THAT TO START GETTING APPLICATIONS, START DOING RECRUITMENT.
I MEAN, THERE'S SO MANY THINGS THAT WE COULD DO TO MAKE SURE THAT WE ARE GETTING AN IN INTEREST BY THE, BY THE PUBLIC.
UH, IF WE NOTICE THAT WE'RE NOT SEEING AN INTEREST OF PEOPLE JUST WALKING IN THE DOOR, WE CAN INVEST IN RECRUITMENT.
WE CAN INVEST IN JUST DIFFERENT WAYS OF TRYING TO GAIN INTEREST.
AND IF THAT DOESN'T WORK, PERHAPS WE CAN WORK ON HELPING PEOPLE WHO ARE, WHO HAVE BUSINESSES EXPAND THEIR BUSINESS.
BUT OUR GOAL IS TO INCREASE BUSINESS AND INCREASE REVENUE FOR THE CITY OF EL CAJON.
I MEAN IT, AND THAT'S KIND OF, I I THINK A FIVE YEAR PERIOD OF TIME, YOU CAN'T REALLY JUDGE WHETHER OR NOT THIS IS GOING TO BE REALLY SUCCESSFUL WITHOUT GIVING IT A FAIR OPPORTUNITY.
AND I THINK SIX MONTHS IS JUST NOT ENOUGH.
I I THINK SIX MONTHS, ONE YEAR, ONE YEAR, SIX MONTHS, IT'S PERHAPS GONNA TAKE TWO YEARS TO KNOW DOES THIS THING HAVE ANY LEGS ON IT? BUT WHAT IF WE SAY AFTER TWO YEARS, IT'S JUST NOT HAPPENING WITH THE PUBLIC.
DO WE HAVE TO WAIT LONGER THAN TWO YEARS? DO WE HAVE TO WAIT THE FULL FIVE YEARS? I WOULD SAY YES, BUT IF THE CITY, IF THE COUNCIL WANTS TO SEE SOMETHING DIFFERENT, PERHAPS WE CAN TALK ABOUT EXPANDING SOCIAL SERVICES AND EXPANDING WHAT THE KDE COMMUNITY COUNCIL'S DOING IN TERMS OF USING THE TOP FLOOR OF THAT BUILDING OR EXPANDING THE KAN RADIO.
I MEAN, WE HA WE ARE SO INVOLVED IN THE COMMUNITY THAT THERE ARE MANY OPTIONS TO EXPAND ON SERVICES THAT HELP THE COMMUNITY.
AND SOMETHING ELSE YOU MENTIONED EARLIER WAS THAT WE'RE ONLY, THE IMPLICATION WAS THAT WE'RE ONLY HELPING MIDDLE EASTERN POPULATION.
WE ARE NOT ONLY HELPING THE MIDDLE EASTERN POPULATION, WE ARE OPEN TO ANYBODY AND EVERYBODY THAT NEEDS HELP WITH SOCIAL SERVICES.
AND SO THAT WOULD BE ANYONE FROM ANYWHERE.
WE HAVE NEVER, AND WE WOULD NEVER TURN ANYBODY AWAY.
IT IS ALL OF EL CAJON AND WHILE WE'RE CALLED THE CHALDEAN COMMUNITY COUNCIL, IT'S BECAUSE THAT WAS THE MAJORITY OF THE PEOPLE THAT WE WERE HELPING.
I'M, I'M JUST TRYING TO GET MY QUESTIONS ANSWERED.
I, I'VE HEARD THE VALUE OF THE ORGANIZATION, I'VE HEARD THE GREAT THINGS TO DO.
THERE'S NO DISPUTE ABOUT THAT.
I'M TRYING TO GET DOWN TO THE PUBLIC IS GIVING THE, THE CCC FREE RENT.
AND WHAT DOES THE PUBLIC GET IN RETURN? THAT, THAT'S WHERE I'M KIND OF LIMITING MY QUESTIONS HERE.
NOT THE VALUE OF WHAT'S BEING GIVEN OR HOW, I'M JUST TRYING TO FIGURE OUT HOW LONG, WELL, I BELIEVE THE, THE QUESTION IT WOULD BE FIVE YEARS.
NOW I HAVE A DEGREE WITH, UH, THE ISSUE ABOUT NOT HAVING THE EARLY LEASE ON THE CCC SIDE.
UH, I'M A LITTLE MORE INTERESTED ON THE INCUBATOR SIDE BECAUSE LET'S SAY I AM A BUSINESS AND I MAKE A CAPITAL INVESTMENT IN TENANT IMPROVEMENTS IN NEW EQUIPMENT.
IF I KNOW I COULD GET KICKED OUTTA THERE IN SIX MONTHS, I MAY NOT BUY THAT $30,000 COPIER IF I KNOW I MAY HAVE TO GO SOMEWHERE ELSE IN SIX MONTHS.
WHERE WOULD YOU GO IF YOU DIDN'T HAVE THIS FACILITY AVAILABLE FOR EITHER, EITHER OPERATION? THANK YOU.
OH, YOU, SO YOU, JUST TO GIVE YOU LIKE A BACKGROUND ON THE INCUBATORS AND CURRENTLY I, I'M SORRY DR.
BARKA, BUT I'M, I'M JUST NOT GONNA NARROW THE QUESTIONS HERE.
WHERE WOULD YOU GO IF YOU DIDN'T OKAY, BUT BEFORE I WANNA ASK, I'M SORRY.
YOUR FIRST QUESTION, LIKE, YOU THINK OR THERE IS A POSSIBILITY THAT NOBODY'S GONNA JOIN OR GONNA BE NO INTEREST IN THE INCUBATOR? THAT'S WHAT OH, I'M, I'M SAYING I DON'T KNOW WHAT THE YEAH.
SO CURRENTLY THERE ARE LIKE ONE MAJOR INCUBATOR IN SANTIAGO, WHICH IS CALLED E ONE XS.
AND WE ARE GONNA BE THE SECOND ONE.
AND THIS GONNA GONNA, WE'RE GONNA COVER EAST COUNTY BASICALLY.
AND WE SAID WE'RE GONNA FOCUS ON ELCON.
75% OF OUR CANDIDATE WILL BE FROM EL COUNTY, BUT UH, WE HAVE 25% FROM OTHER SURROUNDING, UH, CITIES THAT WE ARE GONNA SERVE.
SO ONE SCENARIO, IF WE DON'T GET ENOUGH PEOPLE FROM EL CAJON,
[00:55:01]
WE'RE GONNA GET FROM AROUND US BECAUSE THE EVO EXS IS PACKED.WELL, LET ME PAUSE THERE BECAUSE YOU SAY IF YOU DON'T GET ENOUGH PEOPLE FROM EL CAJON, YOU'LL GO OUTSIDE.
WE'RE GONNA ASK TO TALK TO THE CITY COUNCIL BECAUSE ONE CONDITION WE'RE GONNA PUT, IF YOU GRADUATE FROM EL CAJON SMALL BUSINESS INCUBATOR, YOU HAVE TO STAY AND DO BUSINESS IN EL CAJON.
EVEN IF YOU COME FROM OUTSIDE EL CAJON, YOUR BUSINESS, YOUR COMPANY HAS TO STAY IN EL CAJON AND PAY TAXES IN EL CAJON AND HIRE PEOPLE FROM EL CAJON.
SO WE CAN ADD CONDITION TO OUR INCUBATOR.
EVEN PEOPLE FROM OUTSIDE EL CAJON, THEY CAN JOIN US.
THEY HAVE TO COMMIT TO EL CAJON BUSINESS AND ECONOMY DEVELOPMENT.
I'LL HAVE TO LEAVE THAT TO THE CITY MANAGER BECAUSE THAT WE CAN TALK ABOUT IT AS THE REQUIRE.
BUT THAT, THAT'S THE SCENARIO.
THE REQUIREMENT IS GOING TO HAVE TO BE 75% OF THE BUSINESSES COMING FROM HEALTHCARE.
OTHERWISE, OUR GOAL IS TO EMPOWER DR.
BARKA, PLEASE, PLEASE LET ME GO AHEAD, HAVE SOME TIME AND THEN I'LL GIVE YOU TIME TO ANSWER AS WELL.
THE REQUIREMENT FOR 75% IS BECAUSE THE PEOPLE OF EL CAJON ARE FUNDING THIS THROUGH FREE RENT.
IF IT WAS A A FOR-PROFIT ORGANIZATION IN THERE, THEY WOULD HAVE TO PAY PROPERTY TAX.
BUT BECAUSE YOU'RE A NONPROFIT, THE PUBLIC IS GIVING YOU FREE PROPERTY TAX AND FREE RENT.
SO, UH, THAT'S WHY THERE'S A 75% REQUIREMENT.
IF YOU SAY THERE'S NOT ENOUGH IN EL CAJON, WE'LL GET FROM OTHER PLACES.
YOU'RE, YOU'RE SAYING THE PEOPLE OF EL CAJON WILL FUND SANTEE LA MESA, LEMON GROVE DEL ERO, UH, HERE.
BUT IF YOU HAVE THE REQUIREMENT THAT THEY MUST STAY IN EL CAJON, I'D HAVE TO LEAVE THAT TO THE CITY MANAGER AND CITY ATTORNEY TO INCLUDE IN THE, THE, THE LEASE SOMEHOW.
BECAUSE OTHERWISE IT'S JUST A WINK WINK.
SO THAT, THAT'S MY, BECAUSE YOU ARE COMING WITH AN ASSUMPTION THAT EL CALHOUN HAS NO INTEREST.
YOU ARE TELLING ME WHAT ABOUT IF EL CALHOUN, THEY ARE NOT INTERESTED IN THE INCUBATOR, THEY DON'T WANNA JOIN THE INCUBATOR, SO THE INCUBATOR IS GONNA BE EMPTY AND THEN WHAT THEY'RE GONNA DO WITH THE SPACE.
I'M TELLING YOU MY SUGGESTION, IF EL CAJON PEOPLE, THEY'RE NOT INTERESTED, AND I DOUBT THAT BECAUSE WE HAVE ALREADY AT LEAST 10 PEOPLE APPROACHING US BECAUSE WE MADE AN ANNOUNCEMENT IN OUR CHANNEL AT 10 PEOPLE ALREADY STARTED THEIR APPLICATION, BUT WE HAVEN'T DONE ANYTHING OFFICIALLY BECAUSE WE HAVEN'T DONE FINALIZED OUR AGREEMENT.
BUT I GUARANTEE YOU THIS IS GONNA BE A SUCCESSFUL OPERATION.
BUT I DON'T WANNA, BECAUSE YOU'RE GONNA TELL ME, PROVE IT.
ARE THEY FROM EL CAJON? THEY'RE FROM EL CAJON.
AND I'M GONNA TELL YOU ONE THING, 99%, UM, WE ARE GONNA FOCUS ON EL CAJON FIRST BECAUSE FOR US, WE CARE ABOUT OUR CITY AND WE WANNA EMPOWER OUR CITY.
AND THIS IS AN AGREEMENT BETWEEN THE CITY AND THE CALON COMMUNITY COUNCIL.
AND OUR GOAL IS TO FOCUS ON OUR KDE OR ALL THE COMMUNITIES OF EL CAJON.
NOT ONLY CHALDEAN, BUT EVERYONE THAT CAN BE A, A PART OF THIS INCUBATOR.
SO WE'RE NOT GONNA FOCUS ON ONE COMMUNITY.
WE'RE GONNA OPEN THE DOOR TO ALL TALENTED PEOPLE AND THEY'RE, THEY'RE GONNA WE'RE GONNA SHARE, AND THEY WOULD LIKE YOU TO JOIN.
IF YOU WANNA BE A PART OF THE ADVISORY BOARD.
ANY ONE OF YOU CAN JOIN THE ADVISORY BOARD AND HELP US TO PICK THE RIGHT CANDIDATE.
AND THERE ARE MANY OPPORTUNITY THROUGH THE INCUBATOR.
I KNOW WE MET WITH THE PRESIDENT OF EVO X.
HE'S GONNA, THEY'RE GONNA GIVE US FULL SUPPORT, UH, TO HELP US WITH THIS PROJECT.
WE JUST EN JOINED THE INTERNATIONAL CONFERENCE OF INCUBATORS WORLDWIDE.
IT WAS IN SAN ANTONIO LAST WEEK.
120 COUNTRIES, UH, 5,000 INCUBATORS JOINED THIS CONFERENCE.
IT'S, IT'S A HUGE BUSINESS DEVELOPMENT PROJECT THAT HAPPENING IN MANY CITY.
EL CAHOON DESERVE TO HAVE THIS INCUBATOR.
THE CHALDEAN COMMUNITY OWNS 3,500 BUSINESS IN SANTIAGO.
WE HAVE, WE HAVE THE KNOWHOW OF A SMALL BUSINESS DEVELOPMENT, AND WE'RE GONNA MAKE SURE THIS INCUBATOR IS GONNA BLOW.
I HAD NEVER IN MY COMMENTS HAVE I SAID, HAVE I DOUBTED YOUR QUALIFICATIONS? NO, BUT I'M JUST ANSWERING YOUR QUESTION.
I HAVE NO DOUBT THAT THE INCUBATOR WILL SUCCEED.
NEVER HAVE I DOUBTED YOUR ABILITY, YOUR CHARACTERISTICS, YOUR ALTRUISM, YOUR EFFECTIVENESS.
MY JOB IS TO MITIGATE THE RISK TO THE PUBLIC.
THAT'S THE REASON I'M ANSWERING YOU BACK.
IF NOBODY FROM EL CAHO JOINED THE INCUBATOR, WE'RE GONNA TALK ABOUT IT.
I'M GONNA BE IN TOUCH WITH THE CITY MANAGER AND TALK ABOUT SOLUTION.
HOW CAN WE INCENTIVIZE PEOPLE? MAYBE WE GIVE THEM A GRANT TO START.
MAYBE WE HELP THEM WITH SOME FUNDING TO START.
MAYBE WE'RE GONNA HAVE OTHER WAY THAT WE CAN GIVE INCENTIVE TO PEOPLE.
[01:00:01]
I CAN TELL YOU WE ALREADY HAVE 10 MEMBERS READY TO JOIN.DOES ANYONE ELSE HAVE ANY COMMENTS? OKAY, MICHELLE, GO AHEAD.
UM, MR. MITCHELL, THE CURRENT LEASE RIGHT NOW, WHAT IS THE LENGTH OF TERM? IT, IT'S A FIVE YEAR AGREEMENT.
SO IT'S A FIVE YEAR AGREEMENT.
AND THE QUESTION RIGHT NOW IS DO WE ADD A SIX MONTH NOTICE? SO IF SOMETHING AT FIVE YEARS OR FOUR AND A HALF YEARS AND IT DOESN'T WORK, THEY WERE SAYING, WE'LL GIVE YOU NOT A 30 DAY NOTICE TO VACATE, BUT A SIX MONTH NOTICE TO VACATE.
SO, SO AS WE WERE NEGOTIATING THE DEAL POINTS, AND WHICH IS WHAT WE TALKED ABOUT IN CLOSED SESSION SEVERAL TIMES, WE TOOK THOSE DEAL POINTS AND THEN PUT TOGETHER A FULL AGREEMENT.
YOU KNOW, THAT FULL AGREEMENT ADDRESSED THINGS THAT WE NEVER CONTEMPLATED, LIKE STORM WATER REGULATIONS AND THINGS LIKE THAT.
SO THE FULL AGREEMENTS THERE TOGETHER, I PROVIDED A DRAFT AGREEMENT, AND AS I WAS REVIEWING IT, AGAIN, I REC RECOGNIZED THAT I GAVE THE CITY NO PROTECTION FOR THE ABILITY TO TERMINATE THE AGREEMENT.
AND A LOT OF LEASE AGREEMENTS THAT WE HAVE, HAVE THAT ABILITY TO TERMINATE THE AGREEMENT.
SO THAT'S WHY THAT WAS INCLUDED.
IT PROVIDES SIX MONTHS WRITTEN NOTICE FROM EITHER SIDE BECAUSE THERE COULD BE AN OPPORTUNITY FOR THE CIAN COMMUNITY COUNCIL THAT THEY WANT TO VACATE TO.
SO IT GIVES THEM THE OPPORTUNITY.
SO THAT'S THE INTENTION OF THE TERMINATION.
AND DO WE HAVE ANY PROVISION FOR ONCE THE FIVE YEAR TERM IS UP, THEY CAN NEGOTIATE AN ADDITIONAL FIVE YEAR TERM? NO, THERE'S NOT A, AN ABILITY TO DO THAT.
NOW THEY CAN DO THAT OUTSIDE THE AGREEMENT, OF COURSE.
OUR CONCERN WAS OUR STATE LAW UNDER, UM, SURPLUS LANDS ACT.
IF YOU GO BEYOND 15 YEAR LEASE AGREEMENT, THEN YOU GET INTO SOME ISSUES.
AND SO WE WANTED TO KEEP IT WELL WITHIN THAT 15 YEAR PERIOD.
SO FIVE YEARS MADE SENSE TO US.
WE DON'T KNOW WHAT THE LONG-TERM NEEDS ARE FOR THE CITY IN TERMS OF HOUSING, POLICE, FIRE STATIONS, UM, OTHER OPPORTUNITIES FOR DEVELOPMENT.
SO WE WOULD RECOMMEND JUST FIVE YEARS UNDER THIS CURRENT AGREEMENT.
BUT AGAIN, GIVING THE CITY SOME FLEXIBILITY IN THE EVENT THE BUILDING WAS NEEDED FOR ANOTHER PURPOSE.
MY QUESTION TO YOU IS, SO YOU'RE NOT SAYING, SO WE'RE GIVING YOU A FIVE YEAR LEASE, AND THAT'S GREAT.
YOU JUST DON'T WANT TO HAVE THE ABILITY FOR US TO, FOR US TO BE A, A BAD LANDLORD, SO TO SPEAK, AND GIVE YOU A SIX MONTH EVICTION, BECAUSE USUALLY THE LEASE IS A LEASE.
LIKE WHEN YOU SIGN A LEASE WITH ANY LEASE, USUALLY THERE'S A TERM OF THE LEASE, RIGHT.
AND THERE'S NO WAY THAT THE LEASE CAN BE CUT.
UH, WHEN YOU SIGN A LEASE WITH A LANDLORD, THEY GIVE YOU A TERM.
SOMETIME THEY GIVE YOU OPTION AFTER THE LEASE IS OVER, YOU HAVE THE RIGHT TO, YOU KNOW, ANOTHER TWO YEAR OR THREE YEARS, OUR LEASE IS BEING IDENTIFIED.
FIVE YEAR LEASE AND NO, NO ADDITIONAL, NO OPTIONS.
WE ARE HAPPY WITH THAT, AND WE ARE SETTLED WITH THAT.
AND THUS, THE CITY COUNCIL HAS APPROVED THAT THIS ADDITION, THE LAST MINUTE EDITION, SIX MONTH, THAT YOU CAN TERMINATE THE LEASE.
THAT'S GONNA BE A DAMAGE FOR US BECAUSE WE CANNOT, LIKE, HOW CAN WE MANAGE AND HOW, HOW CAN WE PLAN? AND EVEN NOW, THE COUNTY GAVE US 500,000 TO START THIS PROJECT.
WHAT WE GONNA DO IF AFTER, AFTER SIX MONTHS AND THE CITY SAID, OH, WE, SORRY, WE CANNOT, THAT'S IT.
YOU ARE, YOU HAVE TO LEAVE OR YOU HAVE TO STOP OR, SO DO YOU HONESTLY THINK THAT WE'RE GOING TO JUST LET YOU GO IN THERE? LIKE SAY RIGHT NOW AND ONLY STAY THERE FOR SIX MONTHS? AT LEAST SAY THAT.
NO, BUT THAT'S, BUT WE'RE HAVING CONFIDENCE IN YOU AND YOU NEED TO HAVE CONFIDENCE IN US.
WE'RE NOT GONNA TURN AROUND AND SAY, OKAY, WELL SIX MONTHS IS UP AND NOW YOU GOTTA GO.
WHEN YOU RENT AN APARTMENT OR A HOUSE, THEY GIVE YOU, OKAY, YOU GO SAY YEAR TO YEAR, THEY ALLOW IN THAT LEASE AGREEMENT.
A 30 DAY NOTICE, WE'RE JUST MAKING IT A SIX MONTH NOTICE.
AND THEY'RE ALREADY, THIS IS IN ADDITION TO THE 30 DAY NOTICE.
SO COUNCIL MEMBER, CAN I JUST CLARIFY? YEAH, GIHAN, YOU CAN SPEAK, BECAUSE THE WAY THAT WAS EXPLAINED WAS THAT THE WAY THAT I UNDERSTOOD HIM TO EXPLAIN IT WAS THAT IT'S FIVE YEARS, AND AT FOUR YEARS, SIX MONTHS, THEY COULD, THEY COULD DENY THE LEASE.
BUT WHAT IT ALLOWS EITHER PARTY TO DO IS TO SAY, NEXT WEEK, WE'VE ALREADY SIGNED THE LEASE.
NEXT MONTH, YOU KNOW WHAT, WE'VE CHANGED OUR MINDS.
WITH THIS BUILDING, WE'RE GIVING YOU YOUR SIX MONTH NOTICE, AND YOU HAVE TO DEPART ON MONTH SEVEN.
THAT IS WHY IT'S, IT IS A FIVE YEAR LEASE.
BUT I THINK MOST LEASES WOULD HONOR THE TERM OF THE LEASE.
AND IF THERE'S NO CAUSE TO TERMINATE EARLY, THEN YOU DON'T TERMINATE EARLY.
BUT THIS CONTRACT CLAUSE THAT THEY'RE PROPOSING HAS, HAS, IT'S NOT FOR ANY SORT OF VIOLATION.
IT'S FOR ANY REASON AT ALL, EITHER PARTY CAN TERMINATE
[01:05:01]
THEIR LEASE.AND I DON'T IMAGINE YOU WOULD WANT US TO DO THAT EITHER, BECAUSE WE'RE TRYING TO HELP SMALL BUSINESSES.
SO WE'RE JUST ASKING TO KEEP THE FIVE YEAR LEASE ACT IN GOOD FAITH.
WE HAVE NO INTENTION OF DOING OTHERWISE.
WE HAVE NO REASON TO NOT TRY TO DO OUR BEST WITH THE INCUBATOR IN FIVE YEARS WOULD, I THINK, BE A FAIR TERM.
AND, AND TO PLAY DEVIL'S ADVOCATE HERE, YOU'RE ASKING US TO TRUST YOU NOT TO GIVE US A SIX MONTH, UH, NOTICE.
WE'RE ASKING YOU TO TRUST US NOT TO GIVE YOU A SIX MONTH NOTICE IN SAY, SIX MONTHS OR WHATEVER.
EXCEPT THAT WE ARE ONLY PAYING A DOLLAR A A MONTH.
SO THE IDEA OF, OR A DOLLAR PER YEAR.
SO THE IDEA THAT, THAT THIS WOULD WORK TWO WAYS.
IT, IT DOESN'T REALLY, BECAUSE OF THE FACT THAT WE DON'T HAVE MUCH TO LOSE AND YOU HAVE MUCH TO GAIN, IF THAT MAKES SENSE.
NO, ACTUALLY WE WOULD HAVE A LOT TO LOSE AS WELL, BECAUSE THEN THAT BUILDING GOES VACANT AND THEN YOU COULD LEASE IT OUT.
THEN WE HAVE TO FIGURE OUT, THEN WE'D HAVE TO FIGURE OUT WHAT TO DO WITH IT.
GOBEL, LET ME ASK YOU THIS SITUATION.
IF YOU WERE PAYING $3,000 A MONTH RENT, $36,000 A YEAR WOULD FOR THE INCUBATOR, YEAH.
WOULD YOU BE OKAY WITH A FIVE YEAR LEASE? WOULD YOU PAY $36,000 A YEAR FOR FIVE FULL YEARS? WELL, I THINK THAT DEPENDS IF IT'S FAIR MARKET VALUE.
IF THAT'S, IF WE WERE IN A POSITION TO DO THAT AND THAT WAS A FAIR MARKET VALUE, WE WOULD, WE WOULD HAVE TO DO THAT.
WE WOULD OBVIOUSLY TRY TO FIND A DIFFERENT PROPERTY THAT WE COULD GET AT A LOWER RATE OR GET SOME SORT OF CITY FUNDING FROM, OR SOME SORT OF COLLABORATION FROM A GOVERNMENTAL ORGANIZATION OF SORTS.
BUT, BUT IF WE WOULD BE FORCED TO, AND WE HAD NO OTHER CHOICE, WE, WE JUST MAY NOT BE ABLE TO AFFORD IT AND NOT DO IT.
THAT WOULD BE, I GUESS, THE ALTERNATIVE.
IF IT'S NOT WITHIN OUR BUDGET TO DO IT.
AND WE ARE CERTAINLY TRYING TO GROW AND USE OUR FUNDS.
BUT UP UNTIL MONTHS AGO, I MEAN, WE, WE WERE REALLY LIMITED ON FUNDS.
THIS $500,000 IS REALLY CHANGED THINGS FOR US, AND IT'S GONNA ALLOW US TO HELP MUCH MORE PEOPLE.
SO I GUESS IT DEPENDS ON WHETHER OR NOT WE HAD THE FUNDS, IF WE COULD PAY FOR IT.
WHEN YOU GET A DOLLAR A YEAR VERSUS PAYING $36,000 A YEAR, YOU HAVE A DIFFERENT, DIFFERENT POSITION ON THE TERM OF THE LEASE.
SO I WOULD LIKE, JUST TO GIVE YOU A LITTLE BIT OF BACKGROUND INFORMATION.
THIS BUILDING WAS OWNED BY THE SAN YSIDRO HEALTH.
SAN YID HEALTH GAVE US THIS BUILDING FOR 2021 UNTIL NOW.
WE DIDN'T PAY ONE PENNY ON RENT BECAUSE WE ARE OFFERING, WE WERE DOING SOCIAL SERVICES AND THEY RESPECT WHAT WE ARE DOING.
THE CITY SAN YID HEALTH APPROACH US, THEY SAID, THINK ABOUT BUYING THE BUILDING BECAUSE WE CANNOT KEEP HAVING YOU FREE RENT FOR, YOU KNOW, MORE THAN THAT.
THE, THE CEO OF THE COMPANY APPROACH US.
AND HE SAID, YOU KNOW, I WOULD LIKE TO BE, TO HAVE A PLAN THAT YOU CAN TAKE OVER THE BUILDING.
EITHER YOU BUY IT OR FIND A WAY TO, UH, FIND SOMEBODY TO BUY IT FOR YOU.
SO WE START THINKING ABOUT THAT.
WE SPOKE TO THE CITY OF ALCON, TO THE COUNTY, UH, TO OUR SUPERVISOR, EVEN TO OUR, UH, FEDERAL LIKE CONGRESSMENS.
THEY SAID, WE HAVE MONEY TO BUY THE BUILDING FOR YOU.
WE'RE GONNA BUY THE BUILDING, GIVE IT TO YOU.
YOU WILL HAVE, YOU'RE GONNA BE A HUNDRED PERCENT OWNER OF THE BUILDING.
OKAY? THAT'S THE WAY WE STARTED.
THE FIRST DISCUSSION WAS, THE CITY IS GONNA GIVE UP THE BUILDING, GIFT IT TO US.
BECAUSE WE CANNOT, THAT'S WHAT HAPPENED.
WE CANNOT GIVE YOU, I'M JUST TELLING YOU THE HISTORY.
WE CANNOT GIVE YOU A GIFT OF PUBLIC FUNDS IN THE FORM OF A FREE BUILDING.
OKAY? THE CITY SAID, WE'RE GONNA GIVE YOU THE BUILDING.
THEN AFTER BACK AND FORTH DISCUSSION, THE CITY MANAGER CAME TO OTHER AND SAY, SORRY, WE CANNOT DO THAT BECAUSE OF THE STATE LAW, BECAUSE WHATEVER WE ONLY CAN DO, LEASE THE BUILDING TO YOU.
WE'RE GONNA GIVE YOU A LEASE, WHICH IS $1 LEASE AND SHOULD, SHOULD TAKE CARE OF YOU.
WE SAID, OKAY, WE'RE GONNA GO WITH THAT OPTION.
YOU CANNOT COME NOW AND TELL ME, OH, WELL, I'M GONNA RENT RENT IT TO YOU FOR 36.
I WOULDN'T GIVE IT TO THE CITY.
IF THIS WAS THE NEGOTIATION, I WOULD HAVE FIND ANOTHER WAY TO BUY IT.
NOW YOU OWN IT AND YOU, YOU, YOU WANNA THEM KIND OF CHANGE ALL THE TERM ON ME.
THERE IS HISTORY, THERE IS BACKGROUND INFORMATION.
YOU HAVE TO KNOW ABOUT IT, ALL OF YOU.
SO WE CAN HELP AND WORK TOGETHER, BECAUSE WE'RE
[01:10:01]
NOT GONNA STOP HERE.WE'RE GONNA, THIS IS WAS OUR BUILDING.
WE WERE IN THIS BUILDING FOR THREE YEARS.
WHY? BECAUSE WE ARE DOING SERVICE TO THE COMMUNITY.
SAN CENTRAL HEALTH IS, IS AN NON-PROFIT ORGANIZATION.
THEY WENT, WENT OUTTA THEIR WAY TO HELP US BECAUSE WE WERE HELPING PEOPLE.
WAS YOUR LEASE WITH THEM FOR A DOLLAR A YEAR ALSO? NO LEASE? NO.
THEY, THEY YET, THEY PAY FOR UTILITY.
THEY DIDN'T CHARGE US A PENNY, IF THAT, YOU SEE, THAT'S TOO MUCH.
I, I SAW A DIFFERENT LEASE THEN.
I AM, I'M GONNA READ AN EMAIL TO YOU THAT I RECEIVED FROM YOUR CITY MANAGER FIVE DAYS AGO.
I REALIZE THAT THE LEASE DOES NOT HAVE AN EARLY TERMINATION CLAUSE BECAUSE WE DO NOT KNOW THE FUTURE OF AN UPCOMING SALES TAX MEASURE, STATE OF THE ECONOMY OR WHAT OUR DEMAND FOR LAND WILL BE.
I'M ADDING THIS TO THE AGREEMENT.
THIS IS NOT A 30 DAY, YOU'VE BEEN A BAD TENANT.
THIS IS, IF OUR SALES TAX MEASURE FAILS AND WE NEED MONEY, WE'RE GONNA KICK YOU OUT.
IT WAS NOT PART OF THE ORIGINAL NEGOTIATIONS, AND WE RESPECTFULLY REQUEST THAT YOU DO NOT ADD THIS TO OUR LEASE.
I, I, I GUESS I'M GONNA MAKE A MOTION, UH, UNLESS THERE'S OTHER DISCUSSION.
I, YEAH, I THINK WE SHOULD LEAVE TIME FOR DISCUSSION AMONGST OUR COUNCIL MEMBERS BEFORE WE, WE LEAD WITH A MOTION.
ARE, IS THERE ANY OTHER QUESTIONS TO STAFF? UM, OR THE K DEAN BOARD MEMBERS FROM OUR COUNCIL MEMBERS? I HAVE A QUICK, I HAVE A QUICK QUESTION FOR LEGAL, UH, MORGAN.
IS IT A, ARE WE LEGALLY REQUIRED TO PUT SOME KIND OF EARLY TERMINATION CLAUSE INTO A LEASE THAT, THAT, THAT IS THEY'RE DESCRIBING, THAT'S IN A LEASE.
WHAT MR. GRAHAM, I MEAN, MR. MITCHELL HAS BEEN REFERRING TO IS A TYPICAL SITUATION WHERE A CITY PUBLIC ENTITY NEEDS TO TERMINATE TO PROVIDE A HIGHER GOVERNMENTAL INTEREST TO A CONTRACTOR TO SAVE MONEY FOR NON APPROPRIATION, THINGS LIKE THAT.
UM, SAY FOR EXAMPLE, THE CITY COUNCIL FINDS IT'S STUCK.
WE CAN'T PAY THE UTILITIES SHARE THAT, UH, IS OBLIGATED WOULD BE OBLIGATED UNDER THIS LEASE.
YOU SHOULD HAVE THE RIGHT TO TERMINATE BECAUSE YOU DIDN'T APPROPRIATE MONEY TO PAY FOR THAT.
UH, SO TYPICALLY WE HAVE A TERMINATION CLAUSE FOR CONVENIENCE AND A CONTRACT.
I'VE BEEN LOOKING THROUGH THIS AGREEMENT AND, UH, HAVE NOT SEEN AN ACTUAL 30 DAY TERMINATION FOR ANY REASON.
NOT EVEN DEFAULT OR, OR THINGS LIKE THAT.
SO, YOU KNOW, TO APPROVE THIS AGREEMENT NOW, AT LEAST NOW IF IF THAT'S NOT IN THERE, WE NEED TO HAVE THAT IN THERE TOO.
UM, BUT I THINK THE INTENT FROM MR. MITCHELL WAS WE DON'T KNOW WHAT THE FUTURE HOLDS.
THIS COUNCIL CAN'T BIND US TO CONTRACTS WITH OTHER, UH, WITH ENTITIES, UH, OR BIND FUTURE CON UH, COUNCILS.
AND I'VE TOLD YOU THAT FREQUENTLY.
THAT'S WHY WE TYPICALLY HAVE ONE YEAR CONTRACTS, UH, THAT, THAT ARE IN PLACE AND THEN THAT END, OR ARE RENEWED BY A NEW COUNCIL.
IT COULD BE THE SAME FIVE MEMBERS, BUT IT'S A NEW COUNCIL.
SO THAT'S REALLY WHAT THE PROTECTION IS, IS TO, UH, HAVE THE ABILITY TO AVOID, UM, HAVING TO PAY MONEY THAT YOU'RE NOT GONNA PUT IN A BUDGET SOMEWHERE DOWN THE LINE.
AND PAYING MONEY IS SOMETHING THAT'S A PART OF THIS PROGRAM, BECAUSE YOU'RE PAYING UTILITIES IN THE LEASE.
BUT, OKAY, SO, BUT THERE, THAT'S, LET ME MAKE SURE I UNDER UNDERSTAND WHAT YOU'RE SAYING.
UM, WE HAVE OBLIGATIONS WITHIN THIS BUILDING FINANCIALLY, BUT THERE'S NO LAW STATING THAT WE HAVE TO HAVE AN EARLY SIX MONTH TERMINATION IN EVERY AGREEMENT.
WE'RE LEASING OUT CITY OWNED PROPERTY.
THERE'S NO STATE LAW OR ANYTHING LIKE THAT? NO.
THIS IS AT THE, NO, NO, THE, THE UNDERSTANDING IS THAT YOU CANNOT COMMIT FUTURE COUNCILS WITH A CONTRACT.
IF YOU DO, THERE ARE REPERCUSSIONS.
SO IN OTHER WORDS, IF YOU'RE GOING TO, UM, UM, IF SAY WE'RE ISSUING BONDS FOR THIS WASTE WASTEWATER ENTERPRISE, AND WE DECIDE WE CAN'T PAY THAT, UH, THEN THE, THE REMEDY IS THE BOND HOLDERS SUE AND, AND EITHER FORCE EVERY YEAR A PAYMENT ON THE PRINCIPAL AND INTEREST ON THOSE BONDS, EVEN THOUGH WE'RE NOT BUDGETING IT.
IT'D HAVE TO SUE US EVERY YEAR TO DO THAT.
UM, ANOTHER PROVISION WOULD BE, UH, A SERVICE CONTRACT AND WE GO AN ANNUAL SERVICE CONTRACT.
WE MAY HAVE OPTIONS TO RENEW, BUT THOSE ARE ALWAYS SUBJECT TO APPROPRIATION BY THE COUNCIL FOR FUNDS THAT THE STAFF BRINGS TO YOU, FINANCE AND CITY MANAGER BRING TO YOU TO
[01:15:01]
APPROPRIATE MONEY TO, TO PAY FOR THAT SERVICE.IT COULD BE, UH, UH, PROFESSIONAL SERVICES FOR LEGAL, IT COULD BE FOR ENGINEERING, IT COULD BE FOR DESIGN, ARCHITECTURAL AND CONSULTANT SERVICES.
AND THEY PUT IT IN THE, THE BUDGET.
AND SO IT, IT'S ENFORCEABLE AT THAT POINT.
BUT IF YOU FIND THE NEED TO FIND, HAVE TO CUT THINGS, PROGRAMS IN THE NEXT BUDGET OR TWO YEARS DOWN THE ROAD, OR THREE YEARS DOWN THE ROAD, YOU HAVE TO HAVE THE ABILITY TO DO THAT AND CUT.
AND THAT'S WHY FROM A CONTRACTUAL RIGHTS BASIS, WE WANT TO HAVE THE ABILITY TO TERMINATE CONTRACTS IN ORDER TO SERVE THE PUBLIC BETTER.
DO WE HAVE THESE KINDS OF, SO I KNOW WE DO, UM, A DOLLAR A YEAR LEASE FOR THE PROPERTY AT THE CHAMBER.
DO WE HAVE ANY KIND OF EARLY TERMINATION CLAUSE ON THAT LEASE? DO WE KNOW? NO, I'VE LOOKED AT THAT LEASE YEARS AGO AND, AND THERE WAS NO EARLY TERMINATION.
IT'S A FIXED, FIXED, UH, TERM.
SOMEBODY APPROVED BACK IN THE SEVENTIES OR SIXTIES OR SOMETHING.
WELL, I, I WANNA MAKE SURE WE'RE NOT CONFLATING TWO ISSUES BECAUSE I'M, WHAT I'M HEARING IS EXPECTATIONS FOR THE INCUBATOR AND EXPECTATIONS FOR, UM, THE SOCIAL SERVICES ACT ASPECT OF IT.
AND IF EITHER OF THOSE ARE NOT PERFORMING, THERE SHOULD BE VERBIAGE IN THE LEASE TO SAY, IF YOU'RE NOT PERFORMING BASED OFF OF THESE EXPECTATIONS THAT ARE AGREED UPON BY BOTH PARTIES, THEN UH, THE LEASE WOULD TERMINATE OR THE CONTRACT WOULD TERMINATE.
AND I WANNA MAKE SURE WE'RE NOT TRYING TO SOLVE THAT ISSUE WITH THE POTENTIAL FOR FINANCIAL RUIN.
UM, THAT COULD BECOME IN THE FUTURE AT SOME POINT IN TIME.
UM, I TEND TO LEAN TOWARDS, UM, AGREEING WITH THE COUN, THE COMMUNITY COUNCIL, THE KDE COMMUNITY COUNCIL.
IT DOESN'T GIVE THE ORGANIZATION CONFIDENCE IN BUILDING THEIR ABILITY TO HELP THE PUBLIC AND TO, UM, ESTABLISH A, I'M THINKING 10 YEARS DOWN THE ROAD, A DECADES LONG PROGRAM OF AN INCUBATOR.
IT DOESN'T GIVE THEM ANY CONFIDENCE.
UM, IN THE EVENT THAT THAT DOES HAPPEN, IF, LET'S SAY WE DID EXECUTE A SIX MONTH EARLY TERMINATION CLAUSE, UM, IT'S GOING TO BE NEXT TO NEARLY IMPOSSIBLE FOR THEM TO MOVE THEIR ENTIRE OPERATION TO ANOTHER LOCATION.
AND I THINK ONE OF THE BENEFITS OF THAT LOCATION IS THAT IT'S WALKABLE, IT'S CITY CENTER.
AND A LOT OF THE PEOPLE WHO ARE IN NEED OF THESE SOCIAL SERVICES, UM, THEY DON'T HAVE CARS.
THEY CAN'T DRIVE THEIR NEWCOMERS.
AND, UM, I, I THINK IT, IT SENDS A DUAL MESSAGE, UM, WHERE WE'RE SAYING, UM, WE'RE, WE'RE GONNA BUY THIS BUILDING FOR THIS, FOR THIS PURPOSE, AND WE'RE GONNA COMMIT AND WE'RE GONNA MOVE INTO THIS, UM, SPACE TO INVEST IN OUR COMMUNITY ON TWO DIFFERENT FRONTS.
BUT WE'RE NOT SIGNALING ANY KIND OF CONFIDENCE IN THAT.
THE OTHER SIDE OF THIS THAT I THINK WE NEED TO KEEP A, KEEP A, UH, OPEN MIND ABOUT OR BE AWARE OF IS WHAT KIND OF MESSAGE DOES THIS SEND TO OTHER ORGANIZATIONS WHEN WE CREATE, UH, A CONTRACT AND WE MOVE ALONG? UM, AND THEN, UM, THE CONTRACT IS SIGNED, BUT EL CAJON GO, RESERVES A LITTLE SIDE OF THINGS WHERE WE GO BACK ON OUR WORD, AND I DON'T, I DON'T THINK THAT'S OPERATING IN GOOD FAITH.
UM, TO, TO, TO ADDRESS YOUR ISSUES, STEVE, WITH REGARD TO IF THERE'S NO, IF THERE'S, IF THERE ISN'T ANY INTEREST IN THE BUSINESS INCUBATOR AND IT'S VACANT FOR, I DON'T KNOW, A, AN EXTENDED PERIOD OF TIME, I THINK THERE NEEDS TO BE SOME LANGUAGE IN THE BUSINESS INCUBATOR CONTRACT TO SIT, TO HAVE EXPECTATIONS LIKE THAT.
UM, I DON'T WANT TO USE A SIX MONTH NO FAULT EARLY TERMINATION CLAUSE TO POLICE THAT.
I DON'T THINK THAT'S THE RIGHT WAY TO, TO HANDLE IT.
UM, SO MY, MY SUGGESTION WOULD BE TO, IF WE DON'T HAVE VERBIAGE CLEAR CUT EXPECTATIONS FOR, UM, THE, FOR THE INCUBATOR AND THE SOCIAL SERVICES WITH REGARD TO HOW MANY BUSINESSES NEED TO BE PARTICIPATING, UM, AT, AT, YOU KNOW, WHATEVER CAPITAL RAISED
[01:20:01]
OR EMPLOYEES HIRED, OR EXPANSION, WHATEVER THAT LOOKS LIKE, I THINK THERE NEEDS TO BE LANGUAGE IN THERE.AND I DON'T KNOW THAT THERE IS, IT SOUNDS LIKE THERE, IS THERE LANGUAGE IN THERE LIKE THAT? THERE IS, THERE'S NOT LANGUAGE ABOUT, UH, A METRICS OF WHETHER THE INCUBATOR PROGRAM IS SUCCESSFUL OR NOT.
UM, SO YEAH, STEVE, I, I'D LIKE TO HEAR, UH, YOUR MOTION AND MAYBE WE CAN JUMP OFF FROM THAT AREA.
SO THERE'S TWO WAYS TO HANDLE IT.
UH, I, I KIND OF GET A SENSE WE'RE ALL IN AGREEMENT THAT THERE'S TWO SEPARATE THINGS GOING ON HERE.
THE SOCIAL SERVICES, WHICH AN ESTABLISHED SERVICE IN THE COMMUNITY AND THE INCUBATOR, WHICH IS SOMETHING BRAND NEW.
I HAVE NO INTEREST IN A SIX MONTH, UH, OUT CLAUSE ON THE SOCIAL SERVICES SIDE.
SO, UH, THAT'LL BE PART OF IT.
NOW, ON THE INCUBATOR SIDE, THERE'S TWO WAYS TO DO THIS.
NUMBER ONE, YOU CAN SAY, UH, YOU GET THREE YEARS GUARANTEED, BUT THEN AFTER THAT THERE CAN BE A SIX MONTH OUT CLAUSE BY EITHER PARTY.
WHAT IF AFTER THREE YEARS, FOR SOME REASON THE CCC WANTS OUT OF THE INCUBATOR BUSINESS.
IT SAYS WE'RE BOOMING OVER HERE IN SOCIAL SERVICES, AND WE WANT THAT SPACE FOR SOCIAL SERVICES.
AND SO I THINK THREE YEARS IS A GOOD THING TO INCUBATE THE INCUBATOR.
THAT'S ONE SOLUTION IS TO SAY, FIX THREE YEARS AND THEN THE SIX MONTH OUT BY EITHER PARTY.
THE OTHER WAY TO DO IT IS TO REMOVE THE SIX MONTH FROM THAT ONE ALSO, BUT PUT IN PERFORMANCE METRICS.
AND IF YOU DON'T MEET THE PERFORMANCE METRICS, THEN YOU'RE IN BREACH AND YOU HANDLE IT THAT WAY.
SO THERE'S TWO WAYS TO DO THAT.
I, I THINK THERE, IF WE'RE TALKING ABOUT A BUSINESS INCUBATOR, WHICH WE'VE ALL IN, SOME YOU AND I HAVE, WE'VE RAN BUSINESSES,
IF YOU'RE NOT TRACKING METRICS, YOU'RE NOT, YOU DON'T KNOW IF YOU'RE GROWING OR IF YOU'RE FAILING.
I THINK IT WOULD BE MORE APPROPRIATE TO PUT IN SOME KIND OF METRIC THAT CAN BE DISCUSSED.
AND MAYBE IT'S BASED OFF OF THESE OTHER INCUBATORS THAT DR.
BARKA AND AND HIS TEAM HAVE BEEN TALKING WITH, AND ASK THEM, WHAT ARE SOME METRICS FOR A STARTUP INCUBATOR? WHAT DOES SUCCESS LOOK LIKE FOR US TO STARTUP INCUBATOR? I WOULD, I, I THOUGHT THAT THERE, I, I THINK THAT THAT WOULD BE A, A LOT MORE APPROPRIATE OF A, OF A, OF A SITUATION THAN ANYTHING ELSE.
WHICH IS GONNA SURPRISE EVERYBODY.
I KNOW MAYBE YOU WEREN'T CLEARING INTO THE NUANCES THERE, BUT WHAT I'M SAYING IS THE BUSINESS INCUBATOR CONTRACT IS SEPARATE THAN THE LEASE CONTRACT.
AND THE LEASE CONTRACT IS FOR THE PROPERTY.
NOW, WHO GETS TO OCCUPY THAT PROPERTY? THE INCUBATOR.
AS LONG AS THEY MEET THESE METRICS, NOW, HOW LONG IS IT GONNA TAKE TO COME UP WITH A CONTRACT FOR THAT TO AGREE ON? WELL, WE, YOU KNOW, WE, SEVEN BUSINESSES, 14 BUSINESSES, WHATEVER, RIGHT? COUNSEL, THIS IS, THIS IS AN INCUBATOR.
I, I THINK HAVING SOME PREDETERMINED SET OF METRICS THAT VINCE OR I WHO HAVE NO IDEA ABOUT WHAT AN INCUBATOR LOOKS LIKE TO DEVELOP OR TO LOOK AT A, UH, THE METRICS OF A SUCCESSFUL INCUBATOR, I THINK IT MAY SET THEM UP FOR FAILURE.
I, I THINK, I THINK WE KEEP, I WOULD RECOMMEND, I LIKE MR. GOEBBELS FIRST IDEA.
YOU HAVE A THREE YEAR REVIEW PERIOD EVERY YEAR OR QUARTERLY.
THEY PROVIDE A WRITTEN REPORT PER THE AGREEMENT RIGHT NOW.
SO WE'LL HAVE A SENSE OF WHERE IT'S GOING.
EVERY YEAR THERE'S AN ANNUAL REPORT TO THE CITY COUNCIL.
IT'LL GIVE YOU A GOOD SENSE OF WHERE IT'S GOING.
AND I THINK WE REALLY LOOK AT PARTICIPATION.
ARE PEOPLE JUST PARTICIPATING? I DON'T, I THINK GETTING INTO HOW MUCH CAPITAL'S RAISED OR HOW MANY JOBS ARE CREATED, I THINK THAT MAY BE TOO MUCH FOR THE FIRST BITE.
I THINK JUST PARTICIPATION LEVELS IS THE FIRST STEP.
AND I THINK WE CAN BUILD OFF FROM THERE.
I, I DO THINK THIS IS NOT THE IDEAL LOCATION FOR INCUBATOR.
I THINK MORE OF AN INDUSTRIAL PARK.
BUT AGAIN, THIS IS PART OF WHERE INCUBATING THE INCUBATOR, AND THIS IS A FIRST GOOD STEP.
I WOULDN'T WANNA, UM, HAM OR SIDLE THEM WITH SOME REQUIREMENTS THAT WOULD ALMOST BE IMPOSSIBLE FOR THEM TO MEET.
BUT I LIKE THE ABILITY TO SAY, AND MR. GOBEL, YOU SAID IT, WHAT IF NO ONE'S INTERESTED? AND, AND WE HEARD WHAT DR.
BARK SAID, BUT THERE COULD BE NO ONE INTERESTED IN IT WOULD BE SITTING ON A, ON A BUILDING, LEASING IT TO NOBODY.
I LIKE THE IDEA OF THE THREE YEAR REVIEW AND THEN IF AFTER THREE YEARS, THERE IS AN, AN ABILITY TO A SIX MONTH PERIOD TO FIGURE OUT WHAT TO DO WITH IT NEXT.
AND THAT COULD BE A, A TERMINATION OF THAT PORTION OF THE AGREEMENT, OR IT COULD BE SOMETHING ELSE, BUT IT WOULD GIVE US SOME, UH, AT LEAST SOME RUNWAY TO USE YOUR TERM THAT YOU GUYS LIKE TO
[01:25:01]
USE A LOT TO FIGURE OUT WHAT TO DO WITH THE 3000 SQUARE FEET.DOES THAT, DOES THAT HELP YOUR DIALOGUE A LITTLE BIT? WELL, THE REASON WHY I SUGGESTED THE THREE YEAR GUARANTEE IS YOU HAVE CERTAINTY.
CORRECT? EVERYBODY LOVES CERTAINTY.
YOU GET THREE YEARS TO, TO START YOUR BUSINESS AND GET IT GOING.
I ALSO HAVE TO BALANCE THE PUBLIC'S INTEREST IN GIVING THIS FOR A DOLLAR A YEAR.
AND THAT'S WHY I SAY, OKAY, I'M GONNA GIVE IT TO THESE GUYS FOR THREE YEARS TO INCUBATE THE INCUBATOR.
BUT PUBLIC, I GOT YOUR BACK OVER HERE TO SAY, IF IT DOESN'T TAKE OFF, WE WON'T CONTINUE TO DO THAT.
THE QUESTION IS, IS THREE YEARS A REASONABLE AMOUNT OF CERTAINTY? I THINK IT IS.
I PERSONALLY HAVE STARTED THREE BUSINESSES.
TWO OF THEM WENT PAST THREE YEARS, AND ONE OF THEM DIDN'T GO PAST THREE YEARS.
SO I KNOW AT THREE YEARS, IF IT'S A GO, NO GO DECISION.
THAT'S HOW I CAME UP WITH THREE.
YES, GIHAN, PLEASE COME ON UP.
I, I COMPLETELY UNDERSTAND THAT THE THREE YEARS, AND I, I SINCERELY APPRECIATE THAT, THAT, BUT SINCE WE DO KNOW THAT KDE COMMUNITY COUNCIL DOWNSTAIRS IS OPERATING, IT'S SUCCESSFUL, IT HAS A TRACK RECORD.
PERHAPS WE CAN INCORPORATE SOMETHING THAT IF YOU DO DECIDE TO TERMINATE FOR WHATEVER REASON AT THE THREE YEAR MARK, THAT IT COULD BE GIVEN TO THE KDE COMMUNITY COUNCIL TO EXPAND THEIR SERVICES.
WOULD WOULD THE COUNCIL MEMBER BE OPEN TO DOING SOMETHING LIKE THAT? BECAUSE WE KNOW, AS, AS YOU INDICATED, I BELIEVE YOURSELF, THAT WE ARE ESTABLISHED, WE ARE HELPING MEMBERS OF THE COMMUNITY.
SO PERHAPS THAT'S SOMETHING THAT IF IT'S TERMINATED AT THREE YEARS, SIX MONTHS, THEN THE LAST 18 MONTHS CAN BE TAKEN OVER BY CAL AND COMMUNITY COUNCIL.
AT LEAST THEY'D HAVE AN, THEY, THEY'D HAVE THE OPPORTUNITY, I GUESS LIKE A, A RIGHT OF FIRST REFUSAL, LET'S JUST SAY.
UM, WOULD THAT BE SOMETHING THAT YOU MIGHT CONSIDER? I, I WOULD LEAVE THAT UP TO MY COLLEAGUES.
UH, I WOULDN'T WANT TO JUST TO BE YEAH, WE'LL TAKE IT.
BUT THERE WOULD HAVE TO BE SOME, UH, SHOW US, UH, THAT YOU'RE BUSTING AT THE SEAMS. YEP.
AND, AND WE WOULD BE SMART TO SAY, OKAY, THAT MEANS YOU NEED MORE SPACE.
PERHAPS THAT'S AT LEAST AN OPTION.
DEPUTY, DEPUTY MAYOR, I, I DO WORRY THAT IT DE INCENTIVIZES THE EFFORT TO MAKE SURE THE INCUBATOR WORKS WELL.
SO I, I WOULD, I THINK THERE'S AN UNINTENDED CONSEQUENCE OF THAT PROPOSAL, SO I'D BE WORRIED ABOUT THAT.
SO IF THEY KNOW THAT THERE'S AN ABILITY TO EXPAND, IF, IF THE INCUBATOR FAILS, HAVE WE CREATED AN OPPORTUNITY OR AN INCENTIVE FOR THE INCUBATOR TO FAIL? THAT'D BE MY ONLY CONCERN.
YOU'RE TALKING ABOUT 18 MONTHS.
I MEAN, IT'S, IT'S A
IF YOU'RE SAYING THAT WE'D HAVE AN INCENTIVE TO NOT DO VERY WELL, ALL IT WOULD BE GAINING IS THAT THE KDE COMMUNITY COUNCIL WOULD GET THE UPSTAIRS FOR 18 MONTHS.
THAT'S NOT REALLY MUCH INCENTIVE TO FA DOES THAT MAKE SENSE? I TEND TO AGREE WITH YOU BECAUSE LET'S SAY THAT WE BROUGHT IN A, AN INSURANCE AGENT WHO WANTED 3000 SQUARE FEET.
I DON'T KNOW THAT WE WOULD GIVE THE INSURANCE AGENT A FIVE YEAR LEASE 'CAUSE THEY WE'RE OUTTA SYNC.
AND IF WE WANTED TO DO SOMETHING WITH THE BUILDING, LIKE RIGHT.
TRADE IT FOR ANOTHER PIECE OF PROPERTY FOR A NEW, SOMETHING, SOMETHING.
UH, SO I TEND TO BE MORE SYMPATHETIC TO YOUR ARGUMENT.
AND I WANT TO GO BACK TO, UM, WE SHOULD, MAYBE THE SUGGESTIONS I GAVE WITH REGARD TO METRICS FOR THE INCUBATOR WEREN'T APPROPRIATE, BUT MAYBE THERE SHOULD BE A METRIC WITH REGARD TO PARTICIPATION.
UM, AND SO I DON'T WANT TO CONFLATE TWO ISSUES.
WE NEED TO KEEP THEM SEPARATELY.
UM, AND, AND I AGREE, EVEN IF THEY DID VACATE 18 MONTHS, NO ONE'S GONNA SIGN A BUILD OUT AN AREA FOR 18 MONTHS AND RUN THEIR BUSINESS OUT OF THERE.
IT JUST DOESN'T SEEM LIKE ENOUGH TIME TO YOUR POINT, THE, THE, THE FLOORS ARE OFFSET, UM, WITH REGARD TO THE LEASES.
UM, AND THERE ARE MANY WAYS TO DO THAT.
COUNCIL MEMBER ORT OR DEPUTY MAYOR ORTIZ THERE, WE COULD HAVE THEM SOME SORT OF AUDIT.
HEY, HOW MANY APPLICANTS HAVE YOU HAD? ARE THOSE NUMBERS INCREASING? WHAT KIND OF INDUSTRY ARE PEOPLE APPROACHING YOU WITH? I MEAN, THAT'S STUFF THAT WE COULD EASILY KEEP TRACK OF.
BUT, UM, SO I THINK SOME FORM OF METRICS WOULD, IS NOT A BAD SUGGESTION.
I JUST DON'T KNOW THAT WE COULD REALLY COMPARE US TO THE $10 BILLION INCUBATOR.
BECAUSE THAT WOULD BE SENDING US UP FOR FAILURE.
WHAT, WHAT, WHAT I WOULD, WHAT I WAS SUGGESTING TO CLARIFY WAS LET'S TALK TO THIS OTHER INCUBATOR, SOMEONE WHO'S BEEN DOING IT FOR A LONG TIME, AND ASK THEM, WHAT DOES SUCCESS LOOK LIKE FOR AN INCUBATOR IN THE FIRST YEAR, IN THE FIRST FIVE YEARS? I THINK THAT'S A GREAT IDEA.
AND THEN THAT'S A GOOD JUMPING OFF POINT FOR EXPECTATIONS THAT THE CITY WOULD HAVE ON HOW THE INCUBATOR IS BEING RAN.
YEAH, I THINK THAT'S A GREAT IDEA.
DO YOU THINK WE SHOULD VOTE ON TWO SEPARATE ISSUES HERE? NUMBER ONE VOTE ON THE THE CCC LEASE.
[01:30:01]
AND IS THERE A NEED TO KICK THIS BACK TO STAFF? I THINK THERE IS A NEED TO KICK IT BACK TO STAFF, DISCUSS AND BRING IT BACK TO COUNCIL FOR A NEAR 'CAUSE WE'RE ON THE CLOCK ON THIS.AND, UH, AND WE'RE, WE'RE EATING UP OUR FIVE YEARS IN, IN A SENSE,
SO IF WE KICK IT BACK TO STAFF TO TALK MORE ABOUT METRICS AND WELL, IT IS A SEPARATE VOTE AND CONS.
THE, THE, THE, IT'S, IT'S ONE RESOLUTION, BUT YOU CAN BI BIFURCATE THIS, FABRICATE THE VOTE AND YEAH.
AND MAKE, YEAH, WE CAN MAKE, MAKE IT, THE CITY ATTORNEYS AMEND THE RESOLUTION TO ONLY INCLUDE THE SOCIAL SERVICE PORTION VALUE IN THAT TO LIKE, WE'RE NOT QUITE SETTLED ON THE SIDE.
WELL, I THINK WE ARE SETTLED ON THE SOCIAL SERVICES ASPECT OF IT.
I DON'T THINK ANYBODY WANTS TO KICK OUT SOCIAL SERVICES WITHIN SIX MONTHS FOR, FOR NO REASON.
I THINK THAT THE MATERIAL BENEFIT IS, IS APPARENT.
SO WHAT YOU WANNA DO WITH THE SOCIAL SERVICES PART IS NOT PUT THE SIX MONTH TERMINATION LEASE.
BUT AT THE END OF THE DAY, THIS IS A BUSINESS TRANSACTION.
WE DIDN'T WANT TO BECOME LANDOWNERS.
WE DIDN'T WANT TO HAVE, OR SOME OF US DID NOT WANT TO TAKE THIS JUMP BECAUSE WE DON'T KNOW WHAT'S HAPPENING IN NOVEMBER AND NOW.
AND THERE WERE SOME INSTANCES ON WHY WE DID NOT WANNA TAKE THIS JUMP, OR SOME OF US HAD RESERVATIONS TO NOT TAKE THIS JUMP.
WE HAVE TO BE, WE HAVE TO HAVE SOMETHING THAT COVERS OUR BUTT, JUST LIKE THEY NEED SOMETHING TO COVER THEIRS.
AND I THINK THAT WE'RE, WE'RE FIGHTING OVER A SIX MONTH THING.
THAT'S PROBABLY NOT GONNA HAPPEN AT ALL.
BUT AT LEAST IF SOMETHING DOES HAPPEN, WE HAVE THAT, THAT OPTION.
NOT ONLY THAT, BUT AFTER FIVE YEARS OR FOUR YEARS IN FOUR YEARS, OR MAYBE THIS NOVEMBER, WE MIGHT HAVE A WHOLE NEW COUNCIL.
THE THREE OF US COULD BE VOTED OUT.
DO WE REALLY WANNA HOLD ANOTHER COUNCIL TO SOMETHING? BECAUSE THAT'S WHAT WE HAVE TO TAKE INTO CONSIDERATION.
WE'RE HOLDING ALL FUTURE COUNCILS FROM THIS DAY FORWARD TO SOMETHING THAT WE HAVE.
NO, WE HAVE NO INSURANCE IN IT.
AND I'M JUST SAYING, I I DON'T KNOW WHY WE'RE FIGHTING OVER THIS.
I, I, I UNDERSTAND YOUR POSITION, BUT IN, AT THE END OF THE DAY, THIS IS A BUSINESS TRANSACTION AND YOU ARE KIDDING.
FREE RENT AND YOUR CONSTITUENTS ARE ALSO GETTING FREE SOCIAL SERVICES.
LET, LET, LET'S, LET'S, LET'S KEEP THE DISCUSSION AMONGST US AND YOU CAN ADDRESS A QUESTION.
TO THE COUNCIL, TO THE C COMMUNITY COUNCIL IF YOU'D LIKE.
WE CAN DO A FIVE YEAR LEASE LEGALLY.
AND SO WE'RE NOT OBLIGATING ALL FUTURE COUNSELS.
WE'RE OBLIGATING WHATEVER COUNCIL IS HERE IN FIVE YEARS OR LESS, I'M GONNA MAKE A MOTION THAT WE APPROVE, OH, SORRY GARY, JUST TO COMMENT.
I THINK IT'S VERY DIFFICULT FOR ANY BUSINESS TO PLAN AND GET THEIR FINANCING AND GRANT UNLESS THEY HAVE THAT FIVE YEARS LOCKED UP.
RIGHT? 'CAUSE IT, YOU KNOW, IF, LIKE, YOU GAVE AN EXAMPLE OF YOU BUY A $30,000 COPY MACHINE, OR YOU BUY ALL THIS EQUIPMENT AND THEN ALL OF A SUDDEN IN SIX MONTHS YOU'RE OUT.
AND, YOU KNOW, THE BANKS DON'T LIKE THAT KIND OF THING.
AND HE, AND I'M GONNA TAKE A LEAP OF FAITH AND, AND SAY THAT I THINK A, A FIVE YEAR LEASE IS, IS OKAY, BUT WE HAVE TO HAVE SOME SORT OF, SOME SORT OF METRICS THAT'S EASY.
YOU KNOW, LIKE HOW MANY PEOPLE CAME IN THERE JUST, UH, TO CHECK TO MAKE SURE THAT THEY'RE DOING WHAT WE THINK THEY'RE GONNA DO.
BUT, UH, YOU KNOW, I DON'T, I DON'T LIKE GIVING, SHOWING SOMEONE TO THE DOOR AFTER SIX MONTHS.
THAT'S, THAT'S NOT REALLY A TYPICAL BUSINESS KIND OF LEASE.
THE THE OTHER SIDE OF THIS IS, UM, THIS ORGANIZATION WHO IS TRYING TO SECURE OTHER SOURCES OF FUNDING FOR SOCIAL SERVICES IS GONNA BE AT THE BEHEST OF OTHER COUNCILS.
AND THAT GIVES THEM NO CERTAINTY OR THE ENTITIES GIVING THEM MONEY TO SECURE FUNDING IF THEY KNOW THAT THEY COULD BE KICKED OUT IN SIX MONTHS.
SO LET'S SAY THE CHALDEAN COMMUNITY COUNCIL IS TRYING TO SECURE FUNDING, UM, THROUGH
[01:35:01]
OTHER MEANS TO KEEP THEIR SOCIAL SERVICES GOING.UM, AND ON THE APPLICATION, IT'S, THEY FIND OUT THAT THERE'S A SIX MONTH EARLY TERMINATION CLAUSE THAT COULD BE FOR NO FAULT OF THEIR OWN JUST BECAUSE THE CITY DECIDED TO CHANGE HIS MIND.
AND THERE COULD BE A FUTURE COUNCIL THAT SERIOUSLY JEOPARDIZES THEIR ABILITY TO SECURE FUNDING IN THE FUTURE IF THEY DON'T HAVE A PLACE TO OPERATE OUT OF.
SO I, I'M GONNA MAKE A MOTION, UM, TO APPROVE THE LEASE AGREEMENT FOR THE KDE COMMUNITY COUNCIL SOCIAL SERVICES FIRST FLOOR, 4,100 SQUARE FEET WITH, WITH OMITTING THE SIX MONTH TERMINATION CLAUSE.
UH, MOTION CARRIES BY A THREE ONE VOTE WITH COUNCIL MEMBER METRO VOTING NOTE.
SO THAT BRINGS US TO THE BUSINESS INCUBATOR PROGRAM.
AND STEVE, YOU HAD AN, UH, I I THINK THAT WE NEED STAFF TO GO BACK AND PUT IN METRICS WITH REGARD TO PARTICIPATION.
WAS THE SENSE THAT I WAS GETTING, UM, FROM THE COUNCIL IS, WELL, WE KNOW WE'RE GONNA GET QUARTERLY REPORTS.
WHO'S APPLIED, WHO'S BEEN ACCEPTED.
WE KNOW THAT'S GONNA BE, THAT'S PART OF THE REPORTING, THE HUNDREDS AND LEASE.
THE QUESTION IS, WHAT'S THE MINIMUM ACCEPTABLE NUMBER TO NOT BE IN BREACH? THAT'S SOMETHING THAT I THINK NEEDS TO BE IN THE LEASE AGREEMENT FOR THIS INCUBATOR PROGRAM.
IS THAT SOMETHING THAT CAN, IS THAT SOMETHING REALISTICALLY STAFF? WE CAN, WE CAN COME UP WITH MINIMUM PARTICIPATION FOR AN INCUBATOR PROGRAM.
UM, IF THE COUNCIL CAN WAIT A MOMENT.
WE INCLUDED IN THE LEASE AGREEMENT OR THE RFP RESPONSE THAT INDICATES WHAT THE BUSINESS PLAN STATES.
AND MAYBE THERE'S SOMETHING THERE.
I I DON'T HAVE OFF THE TOP OF MY HEAD.
SO IF YOU CAN BE PATIENT WITH ME, THAT'S FINE.
UM, NO, THERE'S, THERE'S NO INDICATION OF HOW MANY, I THINK IN, IN STAFF'S MIND.
I MEAN IN, WE HAD KIND OF IN OUR, IN OUR HEAD IN TERMS OF, I MEAN, AND IF THIS IS SOMETHING THAT WE HAVE TO GO BACK AND FORTH THROUGH, I MEAN THE, THE NOTION THAT THIS IS SORT OF FREE MONEY, THAT IT'S JUST, YOU KNOW, NOBODY'S MONEY.
THAT'S NOT TRUE BECAUSE THERE'S A LOT OF OTHER TRADE-OFFS FOR THIS, HOW THIS MONEY COULD HAVE BEEN USED.
AND SO STAFF DID TAKE A LOT OF DELIBERATE THOUGHT AND PROCESS INTO, YOU KNOW, WELL IF IT HELPS THREE BUSINESSES AND WE'RE INVESTING $2.5 MILLION TO HELP THREE BUSINESSES FROM A, FROM A ROI PERSPECTIVE, THAT'S A HORRIBLE DEAL.
SO I THINK IN, IN OUR MIND, WE WERE THINKING A MINIMUM OF FIVE BUSINESSES SHOULD BE INC BEING INCUBATED AT ANY GIVEN TIME.
WE'VE NEVER SOCIALIZED THAT WITH THE COUNCIL OR WITH, WITH THE K COMMUNITY COUNCIL.
UM, PERHAPS IF YOU WERE TO PUSH THIS TO ANOTHER MEETING, IT WOULD GIVE US A CHANCE TO LOOK AT IT REALISTICALLY AND GO, WHAT IS, WHAT'S A A REALISTIC NUMBER TARGET TO HIT? UH, AGAIN, I WOULDN'T WANNA SET THEM UP FOR FAILURE.
THIS IS SOMETHING THAT WE WANT THEM TO BE SUCCESSFUL AND, AND IF, AND IF THEY HIT FOUR, WHAT HAPPENS? RIGHT.
ARE THEY BOOTED TO THE STREET? I, I, THOSE ARE THE THINGS THAT WE'LL NEED TO WORK OUT.
UM, BUT, AND I THINK IN MY MIND, HELPING FIVE BUSINESSES AT ANY GIVEN TIME SEEMS TO MAKE SENSE.
AND IF THEY'RE THERE FOR ABOUT A ONE YEAR PERIOD, THEN OVER THE COURSE OF THREE YEARS, YOU'RE THEORETICALLY HELPING 15 BUSINESSES.
MAYBE THAT'S TOO LOW, I DON'T KNOW.
BUT, BUT LET LET STAFF, I THINK STAFF CAN TAKE A, UM, A LOOK AT IT AND SEE WHAT THINK WHAT WE THINK IS REASONABLE, UH, WITH THE CAVEAT THAT THIS IS NOT OUR AREA OF EXPERTISE.
WHY DON'T WE TABLE UNTIL STAFF HAS TIME TO REVIEW IF, UM, IF WE'RE ALL IN AGREEMENT.
I I JUST WANTED TO SAY ONE THING.
BARKA HAS A STRING OF SUCCESSFUL BUSINESSES THAT HE STARTED.
AND SO HE KNOWS WHAT HE'S DOING.
AND OUR RETURN ON INVESTMENT SHOULD BE BASED UPON THAT, UH, YEARLY RENT, NOT THE VALUE OF THE BUILDING.
'CAUSE WE GET THE BUILDING BACK EVENTUALLY.
UH, SO WHAT WE'RE REALLY TALKING ABOUT IS WHAT, $3,000 A MONTH, UH, MARKET RENT.
AND YOU KNOW, THAT'S A LOT LOWER NUMBER THAN A COUPLE MILLION DOLLARS THAT WE PAID FOR THE, FOR THE BUILDING.
[01:40:01]
NOVEMBER AND THEN WE'RE GONNA REALLY BE SCRAMBLING FOR MONEY.SO, UH, I DON'T KNOW IF IT WOULD BE BETTER TO PUT IN SOMETHING REGARDING PROP.
GEE, I DON'T KNOW IF WE CAN DO THAT INTO THE CONTRACT, MORGAN, IF IT PASSES
UH, ONE OF THE METRICS THAT SHOULD BE CONSIDERED, UM, NUMBER ONE, PROP J GOES TO WHAT, 2026 OR SEVEN? 29 20.
SO IT'S, YOU KNOW, WHETHER IT PASSES AT THIS ELECTION, YOU KNOW, ASSUMING THERE'S SOMETHING ON THE BALLOT AND ASSUMING IT DOESN'T PASS, THE CITY COUNCIL WILL BE WORKING ON DIFFERENT THINGS IN STAFF TO TRY TO ADDRESS THAT ISSUE BEFORE 2029.
UM, UH, SO, SO I WOULDN'T, I WOULDN'T WANNA PUT THAT IN THERE.
IT'S ALMOST, UH, APPEARS TO, UH, FORCE A SECTION OF OUR COMMUNITY TO TRY TO ENDORSE, UH, THE MEASURE ITSELF.
AND COUNCIL MEMBER KENDRICK, I INCLUDED THAT AS JUST AN EXAMPLE OF THE, THE THOUSANDS OF UNKNOWNS THAT CAN OCCUR.
RIGHT? IT WASN'T, IT WASN'T THE CONCRETE.
SO I THINK INCLUDING THOSE THOUSANDS OF UNKNOWNS WOULD BE HARD TO PUT INTO A LEASE AGREEMENT.
HENCE THE REASON FOR THE EARLY TERMINATION.
I DON'T KNOW THAT THERE'S A CONNECTION TO PROP J REALLY, IF PROP J DOESN'T PASS, YOU'RE, YOU'RE ONLY CHARGING A DOLLAR A YEAR.
SO IT'S NOT LIKE YOU'RE LOSING INCOME BECAUSE YOU'RE ONLY LOSING A DOLLAR A YEAR.
WHAT YOU ARE POTENTIALLY LOSING IS WHAT COULD YOU RENT IT FOR INSTEAD? CORRECT.
'CAUSE IF THAT IS $36,000 A YEAR, THAT IS NOT GONNA HELP US IF WE LOSE OUT IN PROFIT.
IF WE WERE TO LEASE THE WHOLE BUILDING OUT, IF, IF YOU GOT A 7% CAP RATE, YOU WOULD BE GENERATING AT LEAST $200,000 A YEAR BASED ON OUR INVESTMENT.
SO THAT DOES HAVE AN IMPACT ON KEEPING POLICE OFFICERS ON THE STREET IF YOU ACCEPT THE 7% CAP RATE ON THAT BUILDING.
W WOULD WE, IS IT POSSIBLE TO APPROVE A RESOLUTION WITH THE CAVEAT THAT THE METRICS RIGHT NOW OR YOU NEED TO GO BACK AND I WOULD RECOMMEND, I DON'T WANT, I DON'T WANT THAT AUTHORITY TO BE HONEST WITH YOU.
I WOULD RECOMMEND YOU ONLY ADOPT A RESOLUTION THAT APPROVES THE, THE LEASE FOR SOCIAL SERVICES DIRECT STAFF TO COME BACK WITH THE METRIC.
WE'LL PRESENT A DIFFERENT AGREEMENT, UH, AFTER WE COORDINATE WITH THE COMMUNITY COUNCIL.
DO YOU NEED A MOTION FOR THAT, MORGAN? OR DOES THAT JUST FEEDBACK? YOU COULD PROVIDE THE FEEDBACK, YOU KNOW, IF THE COUNCIL'S AGREEABLE TO THAT WE, UH, YOU KNOW, WE HAVE THREE WEEKS BETWEEN MEETINGS.
I DON'T KNOW IF THAT'S GONNA BE TOO SOON OR NOT, BUT, UM, UH, BUT, BUT ADOPTING THE RESOLUTION, I WOULD SUGGEST THAT YOU JUST SAY AMENDED TO INDICATE THAT IT'S ONLY APPROVING THE, UH, SOCIAL SERVICES LEASE OF THE FIRST FLOOR AND A PORTION OF THE SECOND FLOOR.
WHAT WE BASICALLY I LIKE, PLEASE COME, COME ON.
SO WHAT STEVE SUGGESTION IS LIKE AFTER THREE YEARS, WE EVALUATE THE INCUBATOR AND WE SEE IF IT'S WORKING OR NOT.
AND THE CITY COUNCIL CAN DECIDE IF THE INCUBATOR IS A GOOD PROJECT TO CONTINUE WITH OR NOT.
AND THAT SHOULD TAKE CARE OF EVERYTHING.
SO YOU WOULD BE OKAY WITH A THREE YEAR FIX? I WOULD BE OKAY IF I'M NOT DOING, IF I'M NOT DOING GOOD OVER THE NEXT THREE YEARS.
UH, LIKE YOU SAID, YOU ARE A BUSINESSMAN.
IF WE DON'T SHOW ANY SUCCESS, THE CITY COUNCIL HAD THE RIGHT TO CANCEL OUR LEASE.
SO I'LL MAKE A MOTION TO APPROVE THE SMALL INCUBATOR SERVICES LEASE CONTRACT, REMOVING THE SIX MONTH EARLY.
SO YOU HAVE A MOTION ON THE TABLE RIGHT NOW.
I THINK YOU SHOULD WITHDRAW THE MOTION.
YEAH, LET'S WITHDRAW THAT MOTION.
AND THE SECOND WOULD WITHDRAW OR SECOND IT.
AND GARY, I THINK YOU WERE THE SECOND FOR THE WITHDRAW.
SO I WILL, UH, MAKE A MOTION TO PROVE THE SMALL BUSINESS INCUBATOR RELEASE AS STATED WITH THE FOLLOWING MODIFICATIONS.
REMOVE THE SIX MONTH, UH, AS WRITTEN AND REPLACE IT WITH, UH, THREE YEARS GUARANTEED WITH SIX MONTH OPTION BY EITHER PARTY AFTER THREE YEARS.
DOES THAT MAKE SENSE TO AT LEAST? IS IS, AM I MAKING SENSE? I'M NOT MAKING AN ARGUMENT.
I'M JUST SAYING AM I MAKING SENSE? I, YES.
IT, I THINK THAT'S WHAT TO CLARIFY YOUR MO DR.
THE, THIS IS FOR THE SMALL BUSINESS INCUBATOR
[01:45:01]
LEASE THAT WOULD REMOVE THE SIX MONTH EARLY TERMINATION CLAUSE AND INSTEAD, UM, PUT A CLAUSE IN THAT SAYS A THREE YEAR GUARANTEE.AND AFTER THAT THREE YEARS, THERE'S AN ABILITY FOR EITHER THE INCUBATOR TO REMOVE THEMSELVES FROM OPERATING IT OR THE CITY CAN THEN SAY EXPECTATIONS ARE NOT BEING MET.
UM, AND YOU ARE FORCEFULLY REMOVED FROM SIX MONTHS OPERATING IT.
YOU HAVE SIX MONTHS TO EXIT THAT AREA.
I, I, I COULD SECOND THAT MOTION.
SO MOVE AND SECOND PLEASE VOTE.
MOTION CARRIES BY A FOUR ONE VOTE WITH MAYOR WELLS DISQUALIFIED.
I, I, I WANNA SAY THANK YOU FOR, TO THE COUNCIL.
I'M LOOKING FORWARD TO YOU INVESTING IN OUR CONTINUING TO INVEST IN OUR COMMUNITY, UM, NOT ONLY SOCIALLY SERVICE WISE, BUT WITH OUR BUSINESSES AS WELL.
I HAVE FULL CONFIDENCE THAT, UM, WE'RE GONNA BE BEGGING YOU TO STAY 'CAUSE THERE'S GONNA BE SO MUCH GOOD THAT'S COMING OUT OF IT.
SO I APPRECIATE THE, THE ACT OF GOOD FAITH IN COMING HERE AND SHARING YOUR OPINION.
I KNOW WE GOT HEATED A COUPLE OF TIMES, BUT, UM, THIS IS A, THIS IS A GOOD RELATIONSHIP AND WE WANT TO KEEP IT THAT WAY.
UM, WE'RE GONNA TAKE A FIVE MINUTE BREAK.
DEPUTY MAYOR, I WOULD LIKE TO RESTATE THAT VOTE.
IT WAS ACTUALLY A FOUR ZERO VOTE WITH MAYOR WELLS DISQUALIFIED.
UM, I'M GONNA TAKE A FIVE MINUTE BREAK.
WITH THE COUNCIL MEETING, WE HAVE ONE
[ PRESENTATIONS: Proclamation: International Firefighters' Day]
PROCLAMATION ON TODAY'S AGENDA.I'D LIKE TO INVITE CHIEF CO TO ACCEPT THE PROCLAMATION FOR INTERNATIONAL FIREFIGHTERS DAY.
THANK YOU CHIEF, AND I APOLOGIZE TO YOU AND ALL THE OTHER FIREFIGHTERS FOR MAKING YOU WAIT FOR SO LONG.
THANK YOU MAYOR WELLS AND, UH, THANK YOU MEMBERS OF THE COUNCIL JUST ON PA ON BEHALF OF HEARTLAND PINE RESCUE, EL CAJON FIRE DEPARTMENT.
THEY JUST WANTED TO SAY FROM THE BOTTOM OF MY HEART, THANK YOU AND ON AND, UH, ON, ON BEHALF OF THE MEN AND WOMEN OF, OF, OF OUR DEPARTMENT, THANK YOU FOR THIS RECOGNITION.
AND ALSO, I, I DID WANNA SHARE A VIDEO.
WE WERE INSPIRED BY OUR, UH, COLLEAGUES, OUR EL CAJON POLICE DEPARTMENT WHEN THEY DID THE RECRUITMENT VIDEO.
AND, UH, WE PUT TOGETHER A RECRUIT RECRUITMENT VIDEO OUR OWN, WITH THE HELP OF OUR MARKETING MANAGER, CHRIS BERG.
AND BEFORE WE PLAY THE VIDEO, I ALSO WANT TO SAY, I DO RECOGNIZE WE ARE JUST ONE TEAM OF, OF A TEAM OF TEAMS AND WE WOULD NOT BE ABLE TO DO WHAT WE'RE DOING WITHOUT THE SUPPORT OF ALL THE OTHER TEAM MEMBERS AS A CITY AS A WHOLE.
AND JUST WANT TO SAY THANK YOU FOR THAT.
AND WITH THAT WE HAVE OUR VIDEO TO SHOW YOU AND SURE.
FIRE SERVICE AND HOW FUN OF A JOB IT IS.
EVER SINCE I WAS APPROACHED BY AN ENGINE, WHEN I, WHEN I STARTED VOLUNTEERING, UH, IT'S ALWAYS ONE OF THOSE JOBS WHEN YOU'RE A, WHEN YOU'RE A YOUNG KID, YOU HEAR PRESTIGE OF THE FIRE SERVICE AND HOW FUN OF A JOB IT IS.
AND I'VE BEEN IN LOVE WITH IT EVER SINCE.
WHEN I WAS APPROACHED BY AN ENGINE COMPANY WHO WAS AT THE HIGH SCHOOL I WAS GOING TO SCHOOL AT, IT SOUNDED LIKE A, A GREAT TIME.
AND FROM THAT MOMENT ON, I, I WAS HOOKED, COULDN'T GET ENOUGH.
I WANTED TO BE A FIREFIGHTER SINCE I WAS A LITTLE KID.
I WANTED TO DO A JOB THAT WAS EXCITING AND REWARDING.
MY FIRST DATE ON THE FLOOR WAS, UH, DURING NINE 11.
I KNEW I WAS IN THE RIGHT PLACE OF WORK WHERE I WANTED TO BE.
WE REPRESENT THREE CITIES, BUT UNDER ONE DEPARTMENT MANAGEMENT AND ONE PATCH.
AS THE DEPUTY CHIEF OF OPERATIONS, I GET TO HELP SUPERVISE, UH, OVER A HUNDRED FIREFIGHTERS IN OUR SUPPRESSION DIVISION.
THOSE A HUNDRED FIREFIGHTERS RESPOND TO WELL OVER 32,000 CALLS FOR SERVICE EVERY SINGLE YEAR.
UH, THIS MAKES US ONE OF THE BUSIEST FIRE DEPARTMENTS, UH, IN SAN DIEGO COUNTY.
I BELIEVE THAT HEARTLAND FIRE RESCUE IS ONE OF THE MOST CUTTING EDGE FORWARD THINKING DEPARTMENTS.
THE FIRE DEPARTMENT IS RICH WITH TRADITION, BUT WE'RE NOT AFRAID TO CHANGE.
WE'RE NOT AFRAID TO EMBRACE THE FUTURE, TO MOVE FORWARD, TO LEARN NEW TECHNIQUES, NEW TECHNOLOGIES, AND TO BE THE FIRST ONES TO ADAPT THOSE NEW IDEAS INTO OUR TRAINING.
OUR FIRE DEPARTMENT IS A CLASS ONE ISO RATED FIRE DEPARTMENT.
SO WITH THAT COMES TOP OF THE LINE TRAINING AND TOP OF THE LINE RESOURCES THAT DO ALL OF THOSE THINGS.
[01:50:01]
SPECIFICALLY TO THE LATEST AND GREATEST TRAINING TECHNIQUES THAT WE HAVE.WHEN I SPEAK TO RECRUITS, SOMETIMES THEY'RE CONCERNED, WELL, IT'S A SMALLER DEPARTMENT, I'M NOT GONNA HAVE THE SAME OPPORTUNITIES AS I WOULD AS A BIG DEPARTMENT.
WE HAVE TRUCKS HERE, WE HAVE RESCUES HERE, WE HAVE SPECIALTY APPARATUS.
YOU CAN GO OUT ON STRIKE TEAMS. THERE'S A LOT OF OPPORTUNITIES THAT YOU CAN HAVE.
OUR SWAT MEDIC PROGRAM IS PRETTY UNIQUE.
UH, ONE OF THE GREAT THINGS WITH HEARTLAND FIRE AND RESCUE, UH, IS HOW WELL WE COLLABORATE WITH OTHER DEPARTMENTS.
UH, WE DO JOINT TRAININGS TOGETHER, UH, REALLY GETS EVERYONE ON THE SAME PAGE.
WE'RE ABLE TO TEACH THEM TACTICAL MEDICAL STUFF AND THEY'RE ABLE TO TEACH US, UM, SCENE SAFETY STUFF.
I'VE BEEN LUCKY ENOUGH, UH, TO WORK AT ONE OF OUR STATIONS THAT HAS ONE OF THE OES RIGS.
I'VE HAD AN OPPORTUNITY TO GO OUT ON MULTIPLE DIFFERENT DEPLOYMENTS AND IT'S COOL BECAUSE YOU GET TO GO ALL AROUND THE, THE STATE.
IT'S EVERYTHING FROM FIGHTING THE WILD LAND FIRES OR DEALING WITH FLOOD VICTIMS. THE FIRE STATION DOG PROGRAM HERE IN HEARTLAND FIRE RESCUE IS UNIQUE TO CALIFORNIA.
UM, THERE'S NO OTHER PROGRAM LIKE IT.
THEY'VE REALLY BECOME PART OF OUR CULTURE AND PART OF OUR CREWS DAY-TO-DAY STRESS.
YOU'RE GETTING THE HELP, THE MENTAL HEALTH ASPECT OF IT WITHOUT PEOPLE KNOWING THAT MAYBE YOU NEED SOME, SOME HELP THAT DAY.
EVERYBODY HERE AT HARLAND IS, IS VERY CLOSE.
WE HAVE A GREAT CAMARADERIE THAT ONLY STRENGTHENS US WHEN WE'RE WORKING TOGETHER.
I'M CONFIDENT THAT THEY'LL HAVE MY BACK ON ANYTHING.
AND EVEN THOUGH WE'RE THREE CITIES, WE'RE ONE DEPARTMENT, WE ALL WORK TOGETHER VERY WELL.
I HAD ALWAYS KIND OF CRAVED THAT COMRADERY AND, AND JUST HAVING LIKE A CHOSEN FAMILY ON TOP OF YOUR OWN.
I WORKED WITH MANY DIFFERENT FIRE DEPARTMENTS LOCALLY AND I FELT THE MOST COMFORTABLE WITH HARLAND FIRE AND RESCUE.
I REMEMBER TRAINING HERE, UH, TO BECOME A PARAMEDIC AND WE WERE UP TILL ONE, TWO IN THE MORNING DOING PRACTICE SIMULATIONS.
THE ATTITUDE OF EVERYONE CAN DROP EVERYTHING AND HELP YOU OUT IS DEFINITELY HERE.
AND I FEEL LIKE THAT'S SOMETHING THAT'S SUPER SPECIAL ABOUT HEARTLAND FIRE AND RESCUE IS THAT WE ARE VERY CLOSE.
WE ARE VERY MUCH LIKE A FAMILY.
EVERYONE'S WILLING TO PUT IN THE WORK AND THERE'S NOTHING I WON'T DO FOR THE GUYS THAT THAT WORK FOR ME AND THE GUYS THAT, UM, I WORK FOR.
UH, A WHOLE INTENT HERE IS TO TAKE CARE OF EACH OTHER, NOT ONLY HERE ON THE JOB, BUT OFF THE JOB AS WELL.
UH, ONE OF THE BIG THINGS THAT I REALLY ENJOY ABOUT THIS DEPARTMENT ARE HOW INVOLVED WE ARE WITH THE COMMUNITY.
PART OF THE REASON WHY PEOPLE BECOME A FIREFIGHTER OR CHOOSE THIS LINE OF WORK IS BECAUSE WE GET TO INTERACT WITH THE COMMUNITY.
WE GET TO GO DURING GOOD TIMES AND BAD.
UM, SOME OF THE CALLS THAT WE GO ON, THOSE ARE THE WORST DAYS OF THEIR LIVES.
AND FOR THE FUN PARTS, WE GET TO HAVE THESE EVENTS WHERE WE GET TO HELP AND BENEFIT PEOPLE IN THEIR TIME OF NEED.
WE ARE LOOKING TO EXPAND OUR STAFF WITH GOOD PEOPLE, GOOD PEOPLE THAT HAVE, UH, QUALITIES THAT ARE UNTEACHABLE.
WE HAVE THE ABILITY TO TEACH YOU HOW TO BE A FIREFIGHTER.
WE HAVE THE ABILITY TO TEACH YOU HOW TO BE A PARAMEDIC.
OUR GOAL IS TO GET GOOD QUALITY PEOPLE IN HERE AND HELP THEM LEARN AND EXPAND THEIR SKILLSET.
I COME INTO WORK EVERY DAY NOT KNOWING WHAT TODAY'S GONNA HOLD FOR ME.
I GET TO HELP PEOPLE FROM ALL DIFFERENT WALKS OF LIFE, HELP THOSE PEOPLE ALONGSIDE, UH, MY COWORKERS WHO ARE ALL, ALL SHARE THE SAME, UH, PASSION.
I CAN'T SAY THAT THERE'S NOT ONE SINGLE DAY THAT I WALK PAST THESE APPARATUS ON THE APP FLOOR GOING TO A CALL, OR I DON'T FEEL A SENSE OF PRIDE THAT I WORK HERE.
I'M JUST A SERVICE ORIENTED PERSON.
IT, IT REALLY MAKES ME FEEL GOOD.
I FEEL SATISFIED WHEN I GO HOME FROM WORK EVERY DAY AND KNOWING THAT I'VE MADE A DIFFERENCE.
AT THE END OF THE DAY, IT'S ALL ABOUT THE PEOPLE.
IT'S ABOUT THE PEOPLE THAT WE WORK WITH.
HIGHLY TRAINED, HIGHLY COMPETENT, EXCELLENT ATTITUDES, SUPER PROFESSIONAL.
AND IT'S ABOUT THE PEOPLE WE SERVE.
UM, THAT'S WHY WE'RE ALL HERE.
WE GET TO DO A LOT OF EXCITING, REWARDING STUFF AND I WOULD JUST ENCOURAGE ANYBODY WHO'S INTERESTED IN GETTING INTO THIS FIELD TO APPLY FOR US.
I GOT THANK YOU FOR YOUR SUPPORT AND, UH, JUST ECHOING WHAT, WHAT WAS SAID, THIS IS THE BEST JOB IN THE WORLD AND THANK YOU FOR LETTING US BE PART OF THE TEAM.
WELL, I SPEAK FOR THE WHOLE COUNCIL STATE.
WE'RE VERY PROUD OF OUR FIRE DEPARTMENT.
WE'VE BEEN ALL OVER THE PLACE, BUT LET'S START AT THE BEGINNING.
[ AGENDA CHANGES:]
CHANGES STAFF, DO YOU HAVE ANY AGENDA CHANGES? MR. MAYOR, YOU'VE MADE A COUPLE AGENDA AGENDA CHANGES ALREADY.UM, I WOULD ACTUALLY RECOMMEND THAT WE REMOVE AGENDA ITEM NUMBER 19, WHICH IS A JOINT
[01:55:01]
ITEM WITH, UH, DEPUTY MAYOR ORTIZ AND COUNCIL MEMBER KENDRICK.HE HAD TO LEAVE EARLY AND THERE'S SOME VALUE OF REMOVING THAT, IF THAT'S OKAY WITH MR. ORTIZ.
YEAH, I'LL APPROVE THAT AGENDA CHANGE.
MICHELLE, ARE WE GOING TO GO BACK TO CONSENT ITEMS? YEAH.
JUST CHECKING, UH, COUNCIL MEMBERS, DO YOU HAVE ANY AGENDA CHANGES? OKAY, THAT, UM, WE MADE A AGENDA CHANGE, SO I'LL MAKE A MOTION TO APPROVE THAT.
MOTION CARRIES BY UNANIMOUS VOTE OF THOSE PRESENT.
OKAY, WE'RE NOW AT CONSENT ITEMS.
[7. CONSENT ITEMS: Consent Items are routine matters enacted by one motion according to the RECOMMENDATION listed below. With the concurrence of the City Council, a Council Member or person in attendance may request discussion of a Consent Item at this time.]
CONSENT ITEMS ARE ROUTINE MATTERS ENACTED BY ONE MOTION ACCORDING TO THE RECOMMENDATION LISTED BELOW WITH THE CONCURRENCE OF THE CITY COUNCIL.A COUNCIL MEMBER OR PERSON IN ATTENDANCE MAY REQUEST DISCUSSION OF A CONSENT ITEM AT THIS TIME.
COUNCIL MEMBERS, DO YOU WISH TO PULL ANY OF THE CONSENT ITEMS, STAFF? NO, SIR.
I'LL MAKE A MOTION THEN TO APPROVE THE CONSENT ITEMS. SECOND, PLEASE VOTE FOR THE RECORD.
SIR, THERE WERE NO SPEAKER CARDS FOR CONSENT ITEMS. THANK YOU.
AND MOTION CARRIES BY UNANIMOUS VOTE OF THOSE PRESENT.
AND MY UNDERSTANDING IS THAT, UH, WE DO HAVE ANOTHER, UH, PUBLIC COMMENTER.
WE RECEIVED ONE SPEAKER CARD FROM UM, MANNY CE.
HEY MANNY, HOW YOU DOING? GOOD TO SEE YOU.
WELL, MY NAME IS MANNY SVES AND FIRST OF ALL, THANK YOU FOR KIND OF TWEAKING THE SCHEDULE, I GUESS FOR, UH, TO ALLOW ME TO SPEAK.
UH, MY NAME IS MANNY SVES AND I'M THE COMMUNITY OUTREACH LEADER OF A NONPROFIT CALLED CAST HOPE.
UM, CAST HOPE IS A NONPROFIT THAT PROVIDES THE GIFT OF THE OUTDOORS TO AT RISK AND UNDERSERVED CHILDREN THROUGH THE SPORT OF FISHING.
WE BASICALLY GET A CHILD AND A MENTOR, TYPICALLY A PARENT OR, UM, YOU KNOW, A FAMILY MEMBER.
UH, AND WE PARTNER 'EM UP WITH PROFESSIONAL FISHING GUIDES AND WE TAKE 'EM ON THESE AMAZING FISHING TRIPS.
UH, LAST YEAR WE, UH, BILL WELLS, I AND I TALKED AND I WANTED TO CAST, HOPE, WANTED TO COME INTO EL CAJON, AND I SAID, WHERE SHOULD WE GO? AND HE SAID, IMMEDIATELY, EAST COUNTY TRANSITIONAL LIVING CENTER.
AND FOR THE PAST YEAR, WE'VE PROVIDED FISHING TRIPS FOR THE FAMILIES THAT ARE LIVING THERE.
WELL NOW, AND I'M SO BUMMED THAT SOME OF THE, UH, FIRST RESPONDERS LEFT, UM, CAST HOPE HAS BEEN WANTING TO EXPAND.
AND SO WE FELT LIKE, YOU KNOW, WE KNOW THAT OUR, OUR FIRST RESPONDERS ARE SO TAXED MANDATORY OVER TIME.
AND WE WERE SAYING, WHAT IF WE AS AN ORGANIZATION PROVIDED THAT SAME OPPORTUNITY FOR FIRST RESPONDERS, POLICE AND FIRE TO TAKE THEIR CHILDREN OUT ON, ON THESE AMAZING FISHING TRIPS? AND I, I WAS, UH, TRY, I'VE BEEN TRYING TO GET AHOLD OF EL CAJON PD AND WE, YOU KNOW, THERE'S BEEN PEOPLE THAT ARE LIKE ON MAN OR ON LEAVE AND HERE AND THERE AND THE OTHER THING.
AND I DECIDED TO COME OVER HERE AND SPEAK TO THE COUNCIL TO SEE IF, UH, THIS IS, HERE'S THE DEAL.
THIS SUNDAY, UM, APRIL 28TH, WE HAVE AS CAST HOPE IS RENTED OUT BARRETT RESERVOIR.
AND IF ANYONE KNOWS A BARRETT RESERVOIR, IT'S AN AMAZING FISHERY.
WE HAVE IT ALL TO OURSELVES, AND I HAVE SPOTS OPEN FOR FIRST RESPONDERS.
SO, UM, I JUST, UH, ANYONE OUT THERE IN THE COUNCIL, IF YOU'RE INTERESTED IN KIND OF SEEING WHAT WE DO, YOU'RE MORE THAN WELCOME TO COME AND JOIN US.
UM, I WILL LEAVE SOME INFORMATION FOR YOU PEOPLE TO CONTACT ME, AND IF THERE'S ANY PEOPLE IN, IN, UH, FIRE OR THE POLICE DEPARTMENT THAT WANTS TO SHARE, UH, LIKE I SAID, I, WE HAVE, WE HAVE LIKE A, A ONE, UH, WE HAVE ONE, UM, UH, BOAT THAT'S, UH, AVAILABLE FOR FIRST RESPONDERS TO GO.
THANK YOU SO MUCH FOR, UH, YOUR TIME AND APPRECIATE IT.
YEAH, MANDY TOOK ME AND MY GRANDSON'S, UH, SURF FISHING.
IT WAS A, IT WAS A GREAT TIME AND IT'S, IT'S A REALLY GOOD PROGRAM.
HE BRINGS A LOT OF KIDS FROM ALL OVER THE COMMUNITY THAT WOULDN'T GET A CHANCE TO DO IT.
THERE ARE NO WRITTEN COMMUNICATIONS ON TODAY'S AGENDA.
[7. Adoption of the Proposed 2025 Five-Year Program of Projects for the SANDAG Regional Transportation Improvement Program (RTIP) RECOMMENDATION: That the City Council: Opens the Public Hearing and receives testimony; Closes the Public Hearing; and Adopts the next Resolution, in order, for the adoption of the Proposed 2025 Five-Year Program of Projects for the SANDAG Regional Transportation Improvement Program (RTIP).]
AND WE HAVE THREE ITEMS TO CONSIDER.ITEM SEVEN IS FOR THE PROPOSED 2025 FOR YEAR PROGRAM OF PROJECTS FOR THE SANDAG REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM AND STAFF.
WILL YOU PLEASE TELL US ABOUT THOSE? GOOD AFTERNOON MAYOR, MEMBERS OF COUNCIL, MARIO SANCHEZ, CITY
[02:00:01]
ENGINEER.UH, TODAY THIS ITEM IS FOR THE ADOPTION OF THE PROPOSED, UH, 2025 REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM PROGRAM FOR THE CITY OF EL CAJON.
THE SAN DIEGO COUNTY TRANSPORTATION IMPROVEMENT PROGRAM IS A VOTER APPROVED ONE HALF CENT SALES TAX PROGRAM THAT WAS ADOPTED IN 2008.
THE INTENT OF THE SANDAG TRANSNET PROGRAM IS TO RELIEVE, UH, TRAFFIC CONGESTIONS COUNTYWIDE.
THE CITY RECEIVES APPROXIMATELY THREE AND A HALF MILLION ANNUALLY TO FUND OUR TRANSPORTATION RELATED CAPITAL IMPROVEMENT PROJECTS AND OUR PROPOSED PROGRAM OF PROJECTS AS SHOWN AT ON TABLE ONE OF THE STAFF REPORT OUR FOR OUR CAPITAL IMPROVEMENT PROGRAM FOR THE NEXT FIVE YEARS.
UH, COMPENSATING FISCAL YEAR 25 THROUGH 29.
AND, UM, ON TABLE ONE, THIS IS OUR LISTING OF A PROGRAM OF, OF ACCOUNTS THAT WE USE TO FUND OUR PROJECTS, UH, THAT COMPRISES OF STREET OVERLAYS, SIGNAL IMPROVEMENTS, SIDEWALKS, CURB AND GUTTER STREETLIGHT, INSTALLATION PROJECTS, RESURFACING, TRAFFIC CALMING, AND OUR PAVEMENT MANAGEMENT SYSTEM.
AND WITH THAT, UH, OUR RECOMMENDATIONS TO OPEN AND, UM, THE PUBLIC HEARING, I RECEIVE TESTIMONY YOU WANT TO CLOSE THE PUBLIC HEARING AND ADOPT NEXT RESOLUTION IN ORDER FOR THE ADOPTION OF THE 20 25 5 YEAR PROGRAM PROJECTS FOR THE SANDAG RT EP I'M OPEN UP FOR ANY QUESTIONS.
UM, DO WE HAVE ANY SPEAKER CARDS? NO SPEAKER CARD, SIR.
MAKE A MOTION TO CLOSE PUBLIC HEARING.
MOTION CARRIES BY UNANIMOUS VOTE OF THOSE PRESENT.
SUBMIT A LIKE TO MAKE A MOTION OR IS THERE I'LL MAKE A MOTION THAT WE APPROVE THE NEXT RESOLUTION FOR THE ADOPTION OF THE PROPOSED 20 25 5 YEAR PROGRAM OF PROJECTS FOR SANDAG RTIP.
MOTION CARRIES BY A UNANIMOUS VOTE.
[8. 2024-2028 Five-Year Consolidated Plan and FY 2024-2025 One-Year Action Plan RECOMMENDATION: That the City Council: Opens the public hearing; Accepts public testimony for the draft 2024-2028 Five-Year Consolidated Plan and FY 2024-2025 One-Year Action Plan; Closes the public hearing; Accepts staff recommendations for projects and programs using FY 2024-2025 Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) grant funds; and Authorizes staff to release the draft 2024-2028 Five-Year Consolidated Plan and FY 2024-2025 One-Year Action Plan for a thirty-day review period from April 25, 2024 to May 24, 2024.]
IS THE 20 24 20 28 5 YEAR CONSOLIDATED PLAN AND THE FISCAL YEAR 24 25 1 YEAR ACTION PLAN.I'LL ASK STAFF TO INTRODUCE THIS ITEM.
GOOD AFTERNOON, MAYOR AND COUNCIL MEMBERS.
MY NAME'S RIO, UH, MANAGEMENT ASSISTANT OR MANAGEMENT ANALYST WITH UM, COMMUNITY DEVELOPMENT, UH, HOUSING DIVISION.
THE PURPOSE OF TODAY'S PUBLIC HEARING IS TO SEEK PUBLIC INPUT ON THE DRAFT 20 24, 20 28, 5 YEAR CONSOLIDATED PLAN AND FISCAL YEAR 20 24, 20 25, 1 YEAR ACTION PLAN.
IT IS ALSO TO SEEK CITY COUNCIL'S ACCEPTANCE ON THE PROJECTS AND PROGRAMS THAT THE CITY WILL UNDERTAKE DURING FISCAL YEAR 2024 AND 2025.
AND LASTLY, TO AUTHORIZE STAFF TO RELEASE THE DRAFT COMP PLAN AND ACTION PLAN, UH, FOR A 30 DAY PUBLIC REVIEW AND COMMENT PERIOD.
THE FIVE YEAR CONSOLIDATE CONSOLIDATED PLAN OR COMP PLAN IS A HUD PRESCRIBED TEMPLATE AND REPORT THAT IS REQUIRED IN ORDER TO RECEIVE CDBG AND HOME ENTITLEMENT FUNDS.
THIS REPORT ADDRESSES HOUSING AND COMMUNITY DEVELOPMENT NEEDS OF ALCOHOL HOME'S, LOW INCOME COMMUNITY IN A PERIOD OF FIVE YEARS.
THE CON PLAN HAS DIFFERENT COMPONENTS THAT INCLUDES PUBLIC PARTICIPATION, A COMMUNITY NEEDS SURVEY, HOUSING AND COMMUNITY DEVELOPMENT ASSESSMENT, WHICH INCLUDES CITY DEMOGRAPHICS AND HOUSING, UH, MARKET DATA, AND A STRATEGIC PLAN THAT, UH, SHOWCASES PRIORITIES, OBJECTIVES, AND STRATEGIES FOR THOSE PRIORITIES.
SO THE PRIORITIES PRODUCED OUR, UM, CONSERV AND IMPROVE EXISTING AFFORDABLE HOUSING, ASSIST IN DEVELOPMENT OF NEW AFFORDABLE HOUSING, PROVIDE HOME OWNERSHIP ASSISTANCE, SUPPORT THE CONTINUUM OF CARE OF HOMELESSNESS, PROVIDE FOR COMMUNITY FACILITIES AND INFRASTRUCTURE, PROVIDE COMMUNITY AND SUPPORTIVE SERVICES, AND THE PLANNING AND ADMINISTRATION OF ALL PROGRAMS. THESE
[02:05:01]
PRIORITIES ARE CONSISTENT WITH THE PREVIOUSLY APPROVED COMP PLAN IN 2019.THE ANNUAL ACTION PLAN IS ALSO REQUIRED FOR EACH YEAR OF THE FIVE-YEAR COMP PLAN.
THE ACTION PLAN IDENTIFIES PROJECTS AND ACTIVITIES THAT WILL BE UNDERTAKEN DURING THAT YEAR, AND THAT IS TO ADDRESS THE GOALS AND PRIORITIES LISTED PREVIOUSLY.
AND THE FISCAL YEAR 24 25 IS CONSIDERED THE FIRST YEAR OF THIS NEW COMP PLAN.
AND THEN THE DRAFT OF THAT, UH, FIVE YEAR PLAN AND ACTION PLAN WAS ATTACHMENT ONE OF THE STAFF REPORT.
IN THE DEVELOPMENT OF THE ACTION PLAN, A TOTAL OF SIX SERVICE PROVIDERS ARE BEING RECOMMENDED FOR FUNDING AND ONE PROJECT FOR CAPITAL IMPROVEMENT IS ALSO BEING RECOMMENDED FOR FUNDING UNDER CDPG AND FOR HOME HOUSING PROGRAMS ARE RECOMMENDED FOR FUNDING AND I WILL PROVIDE MORE DETAILS ON THAT.
THE ESTIMATED, UH, 24 25 CDPG ALLOCATION IS 1,229,000.
HUD HAS NOT, UH, PROVIDED THE ACTUAL ALLOCATIONS FOR THE UPCOMING YEAR, BUT ONCE THOSE ARE PROVIDED, WE WILL GO AHEAD AND UPDATE THE ACTUAL ALLOCATION.
SO FOR NOW, WE ARE USING ESTIMATED, UM, FUNDING, UH, THAT WE ALSO RECEIVE CURRENT YEAR.
SO FOR PLANNING AND ADMINISTRATION, THERE IS A 20% CAP OF THE TOTAL ALLOCATION RECEIVED.
STAFF IS RECOMMENDING $205,800 GOING TOWARDS CDBG AND HOME PROGRAM ADMINISTRATION.
AND FOR HUD MANDATED, UH, FAIR HOUSING SERVICES STAFF RECOMMENDS 40,000 TO GO TOWARDS CSA SAN DIEGO COUNTY.
UNDER THE PUBLIC FACILITIES CAPITAL AND OTHER CATEGORY, WE HAVE NO MAXIMUM OF AG LOCATION AND STAFF IS RECOMMENDING 850,936 FOR THE CONTINUATION OF NEIGHBORHOOD STREETLIGHTS.
WE DID, UM, WE DID SEE THERE IS ADDITIONAL FUNDING AVAILABLE OF 54,812 COMING FROM LOAN REPAYMENTS AND UNALLOCATED FUNDS IN CURRENT YEAR.
SO PART OF THAT WOULD BE GOING TO THE CONTINUATION OF NEIGHBORHOOD STREETLIGHTS FOR PUBLIC SERVICES.
THERE IS A 15% MAXIMUM CAP, AND I'M GONNA LIST THE RECOMMENDATIONS HERE.
UH, IT WOULD BE 10,893 FOR ROTATIONAL SHELTER PROGRAM, 10,000 FOR THE SENIOR CARE COORDINATION PROGRAM, A HUNDRED THOUSAND FOR EMERGENCY SHELTER, 25,000 MEALS ON WHEELS, 15,000 HOME DELIVERED MEAL PROGRAM, AND 26,000 183 FOR THE OUTREACH AND HOMELESS SERVICES.
AND THIS PROGRAM WOULD ALSO HAVE THOSE PRIOR YEAR AND UNALLOCATED CDBG FUNDS AS WELL.
SO THE GRANT TOTAL, UM, INCLUDING ALL FUNDING, WHICH IS CDBG ALLOCATION PROGRAM INCOME AND PRIOR YEAR IS $1,283,812.
UM, FISCAL YEAR 24 25 WE'RE ESTIMATING 689,000.
THERE IS A 10% CAP FOR HOME ADMINISTRATION AND STAFF RECOMMENDS 68,900.
THERE IS A 15% MINIMUM REQUIREMENT FOR CHOTO RESERVE ALLOCATION AND STAFF IS RECOMMENDING 103,350.
AND THE REST OF THE ALLOCATION WOULD BE GOING TOWARDS THE HOUSING PROGRAM POOL OF FUNDS.
AND THAT IS AN AMOUNT OF $516,750.
AND THE HOUSING PROGRAM POOL OF FUNDS, THOSE ARE FUNDS THAT ARE EARMARKED FOR, UM, AN AS NEEDED BASIS.
AND THAT INCLUDES THE FIRST TIME HOME BUYER AND THE SINGLE FAMILY AND MOBILE HOME REHAB PROGRAMS. FOR TODAY'S STAFF'S RECOMMENDATION IS THAT THE CITY COUNCIL OPEN PUBLIC HEARING AND A ACCEPT PUBLIC TESTIMONY FOR THE DRAFT COMP PLAN AND ACTION PLAN ALSO TO CLOSE THE PUBLIC HEARING, A SUB STAFF RECOMMENDATIONS FOR PROJECTS AND PROGRAMS USING 24 25 CDBG AND HOME ENTITLEMENT FUNDS, WHICH WILL THEN LEAD US TO CITY COUNCIL AUTHORIZING STAFF TO RELEASE THE DRAFT PLAN AND POST FOR A 30 DAY PUBLIC REVIEWING COMMENT PERIOD.
AND ONCE, UM, WE DO THAT STAFF WILL RETURN TO CITY COUNCIL FOR A FINAL ADOPTION OF THAT PLAN TENTATIVELY SCHEDULED FOR MAY 28TH.
AND BEFORE I CONCLUDE MY PRESENTATION, I DO WANT TO THANK ALL THE CITY DEPARTMENTS THAT DID TAKE PART IN PROVIDING FEEDBACK AND INPUT FOR THE COMPOUND PROCESS.
UH, HOUSING STAFFS AVAILABLE TO ANSWER ANY QUESTIONS OR COMMENTS YOU MAY HAVE.
[02:10:01]
ALL THE HARD WORK THAT WENT INTO THIS.LET ME SEE IF ANYBODY IN THE CITY COUNCIL HAS QUESTIONS FOR YOU.
UM, ON THOSE SIX SERVICE PROVIDERS THAT WE PROVIDE FUNDING FOR, ARE WE GETTING REGULAR REPORTS ON THEM AS TO HOW MANY PEOPLE THEY'RE SERVING AND, UM, YOU KNOW, WHAT THEIR FUND FUNDING HAS BEEN USED FOR? YES.
SO WE DO RECEIVE A REPORT OF ACCOMPLISHMENTS EVERY TIME THEY SUBMIT AN INVOICE, AND THAT COULD BE EITHER MONTHLY OR QUARTERLY.
AND HAVE WE WHAT ON OUR EMERGENCY SHELTER? HOW MANY PEOPLE DID THEY HAVE? ARE THEY SERVING A MONTH? A MONTH? I WOULD HAVE TO CHECK, BUT I KNOW ON AN ANNUAL BASIS THEIR ACCOMPLISHMENT IS 350 PEOPLE.
AND OVER THE YEARS THEY'VE ALWAYS, UM, PROVIDED EITHER THAT AMOUNT OR A LITTLE BIT MORE.
ALRIGHT, WELL THANKS VERY MUCH.
DO WE HAVE ANY, UH, SPEAKER CARDS ON THIS ITEM? WE DO, SIR.
THANKS FOR WAITING PATIENTLY FOR SO LONG.
YEAH, I JUST WANTED TO COME AND THANK YOU GUYS FOR CONSIDERING MEALS ON WHEELS, AGAIN FOR THE CDBG PROGRAM AND APPRECIATE THE FACT THAT YOU GUYS OVER THE YEARS HAVE SUPPORTED US AND ACTUALLY BEEN INVOLVED IN OUR CHAMPION WEEK AND HAD AN OPPORTUNITY TO BE IN THE COMMUNITY AND SEE THE IMPACT THAT MEALS ON WHEELS HAS WITHOUT THE SUPPORT OF OUR, OUR VOLUNTEERS, THERE WOULD BE NO MEALS ON WHEELS.
THEY ARE THE FACE OF MEALS ON WHEELS.
THEY'RE THE CONNECTION WITH, WITH OUR CLIENTS, MANY OF OUR CLIENTS WHO HAVE NO FAMILY, FRIENDS OR NEIGHBORS.
SO THAT, THAT PERSONAL TOUCH ASIDE FROM THE DELIVERY OF THE MEALS.
AND I WANT TO THANK YOU AGAIN FOR YOUR SUPPORT OVER THE YEARS AND WE LOOK FORWARD TO PARTNERING WITH YOU FOLKS AGAIN.
LET US KNOW WHEN CHAMPIONS WEEK IS.
AGAIN, I HAD A BLAST GOING AROUND.
YOU GUYS ARE SO BUSY EVERY, IT'S USUALLY LIKE THE SECOND, FIRST OR SECOND WEEK OF EVERY MARCH.
AND YEAH, HANGING OUT WITH THE VOLUNTEERS AND MEETING THE RESIDENTS, IT WAS AWESOME.
YEAH, WE APPRECIATE EVERYTHING YOU GUYS DO FOR US.
OUR OUR ALLOCATION FOR YOU IS $25,000 BASED ON 126 PEOPLE THAT'S IN THE REPORT.
THAT'S ONLY $200 FOR THE YEAR FOR EACH OF THOSE 126 PEOPLE.
BUT WHAT YOU DO MULTIPLIES THAT.
AND WE KNOW THAT YOU GUYS, AND THERE'S SO MANY WONDERFUL ORGANIZATIONS ASIDE FROM MEALS ON WHEELS IN EAST COUNTIES, SO WE KNOW HOW DIFFICULT IT IS WITH THE LIMITED FUNDS THAT YOU GUYS TO HAVE TO DISTRIBUTE TO AMONG, AMONG ALL OF 'EM.
SO WE'RE JUST HAPPY WE'RE A PART OF THAT GROUP.
WHATEVER YOU GUYS GIVE US, WE'RE THRILLED.
YOU KNOW, I I, I'VE SAID THIS BEFORE, BUT WHEN I WENT OUT WITH WITH YOU ALL, I REALLY THOUGHT YOUR ORGANIZATION WAS JUST ABOUT PROVIDING FOOD AND I MISSED THE MARK BECAUSE MOST PEOPLE WILL SAY LIKE, SET THE FOOD OVER THERE, LET'S TALK.
AND THAT'S ALL THEY REALLY WANTED WAS THE INTERACTION.
I MEAN, I'M SURE THEY ATE THE FOOD LATER, BUT THEY, THEY WERE MORE INTERESTED IN, IN THE INTERACTION WITH YOUR VOLUNTEERS, SO ABSOLUTELY.
IT'S, IT'S THE SOCIAL ENGAGEMENT BECAUSE MANY OF THEM DO NOT HAVE ANYONE.
AND OUR VOLUNTEER WILL PROBABLY BE THE ONLY PERSON THEY SEE THAT DAY OR POSSIBLY THAT WEEK IS THE ONLY SOCIAL ENGAGEMENT THEY HAVE.
BUT, UM, WELL KEEP UP THE GOOD WORK.
ANYBODY ELSE? NO OTHER SPEAKER CARDS? SIR, MAKE A MOTION TO CLOSE THE PUBLIC HEARING.
MOTION CARRIES BY UNANIMOUS VOTE OF THOSE PRESENT.
WELL, IT'S ALWAYS FUN TO FUND GOOD PROGRAMS LIKE THIS.
THIS IS ONE OF THE NICE THINGS ABOUT BEYOND CITY COUNCIL.
ANY DISCUSSION OR SOMEBODY LIKE TO MAKE A MOTION? I'LL MAKE A MOTION, UH, TO APPROVE RECOMMENDATIONS FOR PROJECTS AND PROGRAMS, UH, FOR CDBG AND HOME GRANT FUNDS OUTLINED IN THE STAFF REPORT AND AUTHORIZED STAFF TO RELEASE THE FIVE YEAR CONSOLIDATED PLAN AND ONE YEAR ACTION PLAN, PLEASE VOTE.
MOTION CARRIES BY UNANIMOUS VOTE.
WELL, ALMOST AS GOOD OF A FEEL GOOD ITEM IS ITEM NINE.
[9. Adoption of New Fees, Modification and Elimination of Existing Fees, and Amendment of Schedule of Miscellaneous Fees RECOMMENDATION: That the City Council: Opens the Public Hearing and receives testimony; Closes the Public Hearing; and Adopts the next Resolution, in order, to modify certain existing fees, add and delete certain fees, and amend the City’s Schedule of Miscellaneous Fees.]
ADOPTION OF NEW FEES, MODIFICATIONS AND ELIMINATE ELIMINATION OF EXISTING FEES AND AMENDMENT OF SCHEDULE OF MISCELLANEOUS FEES AND STAFF.WILL YOU TELL US ABOUT THIS PLEASE? THANK YOU.
JUST TO MAKE SURE EVERYBODY'S LISTENING, I DO NOT CONDONE FUN AND GOOD FEELING.
[02:15:01]
SINGLE RESOLUTION, UM, TYPICALLY THIS TIME OF YEAR.AND THE PURPOSE IS TO MAKE SURE THAT THEY'RE IN PLACE BY, UH, JULY ONE.
THE NEW FISCAL YEAR DEPARTMENTS CAN MAKE THEIR ESTIMATES ON BUDGETS.
UH, WE HAVE TO DO IT THIS FAR AWAY FROM THE FISCAL YEAR BECAUSE, UH, UH, DEVELOPMENT IMPACT, UH, DEVELOPMENT FEES, WE DON'T HAVE IMPACT FEES, BUT DEVELOPMENT FEES, COST OF BUILDING, UH, FEES, THINGS LIKE THAT, UH, REQUIRE A 60 DAY REFERENDUM PERIOD.
SO WE WOULD, UH, ULTIMATELY RECOMMEND ADOPTING THE RESOLUTION.
IT WOULD NOT GO INTO EFFECT UNTIL JULY ONE, THOUGH.
UH, THE AGENDA REPORT PROVIDES A GOOD, UH, ANALYSIS OF ALL THE FEES THAT, UH, WILL BE, ARE PROPOSED TO BE CHANGED THERE MINOR CHANGES TO INCREASE CERTAIN FEES FOR, FOR SERVICES THAT MAY NOT HAVE, UH, BEEN, UH, PROVIDED, UH, PREVIOUSLY IN THE PREVIOUS YEARS.
CITY CLERK IS REQUESTING DELETION OF SOME FEES, UH, 'CAUSE SHE'S A NICE PERSON AND, UH, THE ADDITION OF FINGERPRINTING FEES.
UH, COMMUNITY DEVELOPMENT IS PROPOSING CHANGES IN BUILDING SAFETY.
USUALLY THAT HAS TO DO WITH THE MULTIPLIERS AND THE, UM, UH, INTERNATIONAL, UH, CODE OF COUNCIL FOR IN THE SAN DIEGO CHAPTER THAT, UH, WE, WE USE TO, TO CREATE OUR BUILDING AND PLANNING, UH, FEES OR BUILDING FEES, I'M SORRY.
UH, THE, UH, HOUSING DIVISION IS PROPOSING A FEE FOR WHAT IS CALLED A TEFRA HEARING.
WE DON'T CHARGE, UH, NONPROFITS OR BOND ISSUERS THE COST FOR CONDUCTING THESE MANDATORY, UM, PUBLIC HEARINGS.
AND, UH, THERE'S BEEN A DETERMINATION ABOUT HOW MUCH TIME AND EFFORT IS TAKEN BY, UH, THE HOUSING DIVISION TO PR PREPARE THOSE AND, AND PUT THEM ON THE AGENDA AND CONDUCT THE HEARING.
SO THAT IS A NEW FEE THAT WOULD BE CHARGED.
TWO BOND ISSUERS, UH, IN THE FUTURE PLANNING, UH, ALSO HAS DEVELOPMENT, UH, FEES THAT NEED TO BE INCREASED BASED ON COST OF LIVING INCREASES, ALTHOUGH NONE OF THE FEES ARE INTENDED TO WHILE THEY COME, MAY COME CLOSE.
UH, NONE OF THESE FEES EXCEED THE, THE ANTICIPATED COST TO PROVIDE THE SERVICES.
FIRE HAS A A NUMBER OF CHANGES BECAUSE THEY'VE TAKEN OVER THE, UM, FIRE MARSHAL SERVICES, THE INSPECTION SERVICES AND REVIEW OF PLANS AND SPECIFICATIONS THAT FROM THEIR PERSPECTIVE, UM, THE PRIOR FEES, AND THIS IS GOOD NEWS, THE PRIOR FEE USED TO BE BY THE CONTRACT, WHATEVER THE CONTRACTOR CHARGES.
AND THAT WOULD BE SENT OUT TO A COMPANY LIKE ESKILL, FOR EXAMPLE.
UH, PLUS 20% FOR, FOR, UH, ALL THE WORK THAT HAD TO BE DONE TO, TO PROCESSES PLANS.
WE'VE LOOKED AT THAT AND DETERMINED THAT IT'S PROBABLY NOT THE SAME CHARGE IT SHOULD BE ANYMORE BECAUSE EVERYTHING'S BECOME ELECTRONIC.
OVER THE YEARS WE USED TO CHARGE 20% BECAUSE THAT TOOK, UH, TIME FROM PEOPLE TO COLLECT PLANS, PAPER PLANS, GET 'EM PREPARED, COPIED, UH, GET 'EM TRANSPORTED AND THINGS LIKE THAT.
SO NOW EVERYTHING'S DONE ELECTRONICALLY THAT OUR CONTRACTOR CAN GO ONLINE THROUGH A PORTAL AND REVIEW THINGS AND MAKE, MAKE THEIR CHANGES.
SO THE, UM, THE ESTIMATE IS, UH, AFTER REVIEWING IT, THE ESTIMATE HAS BEEN REDUCED IN HALF TO 10% AS OPPOSED TO 20%.
PARKS AND RECREATION HAS SOME MINOR INCREASES.
ONE IS TO, UM, PROVIDE A FEE FOR THE RENTAL OF THE OPTIONAL INFLATABLE, UH, POSEIDON.
WHAT IS THAT POSEIDON BOUNCE HOUSE? IS THAT WHAT YOU GOT WITH THE TRITON? UH, I, I THINK THAT'S WHAT MR. CARSON HAS AS WELL AS THE, UH, OPTIONAL TRACKLESS TRAIN RENTAL.
SO THERE'S A TRAIN STATION COMING CLOSE TO YOU SOMEDAY.
POLICE HAS SOME, UH, FEES THAT WOULD BE DELETED FOR NOT NECESSARY ANY LONGER.
PUBLIC WORKS HAS REQUESTED, UH, THE CHANGES IN FEES IN A FEW OTHER AREAS THERE, UH, INCREASE, THERE ARE MINOR INCREASES, BUT AGAIN, ALL OF THESE ARE CALCULATED TO COME CLOSE, BUT NOT EXCEED AT LEAST THE COST.
THE REASONABLY DETERMINED COST AND EXPECTED COST OF PROVIDING THE SERVICES.
UH, AGAIN, THE, UM, LAW REQUIRES A PUBLIC HEARING ON THESE THINGS.
SO I'D ASK YOU TO CONDUCT THE PUBLIC HEARING AND AFTER CLOSING THE PUBLIC HEARING AND TAKING TESTIMONY TO ADOPT THE RESOLUTION TO, UH, APPROVE THESE FEES.
IF YOU HAVE ANY QUESTIONS, I'D BE HERE.
UM, FOR, UH, ANY QUESTIONS FOR, WELL, ALRIGHT.
WERE THERE ANY, UH, NO SPEAKER CARDS? NO SPEAKER CARDS ON THIS ITEM? OKAY.
MOTION TO CLOSE THE PUBLIC HEARING.
MOTION CARRIES BY UNANIMOUS VOTE OF THOSE PRESENT.
UNLESS SOMEBODY HAS DISCUSSION, I'M LOOKING FOR A MOTION.
YEAH, I'LL MOVE TO ADOPT THE RESOLUTION AS OUTLINED IN THE STAFF REPORT, PLEASE VOTE.
[02:20:01]
VOTE OF THOSE PRESENT.[11. Fiscal Year 2023-24 Mid-Year Report and Five-Year Business Plan Update RECOMMENDATION: That the City Council: Receives and accepts the Fiscal Year 2023-24 Mid-Year Report and Five-Year Business Plan update; Authorizes the proposed personnel changes detailed in this report; and Authorizes the proposed capital expenditures detailed in this report.]
FISCAL YEAR 2023 THROUGH 2024 MIDYEAR REPORT AND FIVE YEAR BUSINESS PLAN UPDATE.AND CLAY IS HERE TO TELL US ALL ABOUT THAT.
GOOD AFTERNOON, HONORABLE MAYOR AND DISTINGUISHED MEMBERS OF THE CITY COUNCIL.
I'M THE DIRECTOR OF FINANCE FOR THE CITY OF EL CAJON.
VERY HAPPY TODAY TO BE HERE TO PRESENT OUR FISCAL YEAR 24 MID-YEAR REPORT AND FIVE YEAR BUSINESS PLAN UPDATE.
TODAY'S PRESENTATION WILL INCLUDE, UH, A PRESENTATION FOR THE MIDYEAR REPORT ITSELF, A BRIEF DISCUSSION ABOUT THE MINOR NUMBER OF BUDGET AMENDMENTS FOR FY 24.
WE'LL SPEND SOME TIME DISCUSSING THE FIVE YEAR BUSINESS PLAN UPDATE, TOUCH ON THE FY 25, UH, BUDGET TIMELINE, AND THEN ANSWER ANY QUESTIONS YOU HAVE FOR THE MIDYEAR REPORT.
GOOD PLACE TO KICK US OFF IS, UH, GENERAL FUND REVENUES FOR FISCAL YEAR 24.
UH, WE HAVE ABSOLUTELY OBSERVED A SOFTENING OF REVENUES IN ALMOST ALL CATEGORIES.
UH, MOST NOTEWORTHY IS THE SOFTENING OF SALES TAX.
UM, GOING BACK TO THIS UH, POINT LAST YEAR, WE WERE ANTICIPATING, UM, SALES TAX TO SOFTEN.
WE WERE EXPECTING A MODEST 0.6% GROWTH IN FY 24.
HOWEVER, WE ARE FALLING SHORT OF THAT EXPECTATION.
IN FACT, WE ARE PROJECTING THAT WE WILL BE DOWN 2.1% OR APPROXIMATELY $1 MILLION LESS THAN WE COLLECTED AN FY 23, WHICH IS 1.3 MILLION BELOW BUDGET IN FY 24 OR 2.8%.
PROPERTY TAXES IS A LITTLE BIT MISLEADING HERE.
UH, WE ARE PROJECTING TO COME IN UNDER BUDGET.
UM, THAT'S MORE A REFLECTION OF THE BUDGET NUMBER THAN ACTUAL NUMBERS.
UH, PROPERTY TAX PERFORMANCE IS STILL VERY HIGH.
UM, OUR PROJECTION WAS A LITTLE ASKEW BETWEEN FY 22 AND 23 COMING OUT OF SOME OF THE TIMING ISSUES RELATED TO COVID AND THAT CORRUPTED OUR 24 PROJECTION A LITTLE BIT AS WELL.
PROPERTY TAX FOR FY 24 IS, UH, UP ALMOST 7% FROM FY 23, SO STILL PERFORMING VERY STRONG IN THAT CATEGORY.
ANOTHER CATEGORY THAT'S PERHAPS A LITTLE MISLEADING.
UM, WE HAD A REC CATEGORIZATION, REC CATEGORIZATION OF REVENUE IN THAT CATEGORY.
UM, WE HAD RENTAL INCOMES FROM WASTE MANAGEMENT THAT HAD BEEN ASSOCIATED WITH THEIR FRANCHISE AGREEMENT IN PREVIOUS YEARS.
WE'VE RECATEGORIZED THAT IN FY 24 INTO THE RENT CATEGORY, SO THAT'S A LITTLE MISLEADING.
UM, THAT REVENUE IS STILL THERE, IT'S JUST DOWN IN OTHER CATEGORIES.
BOTTOM LINE, WE'RE EXPECTING GENERAL FUND REVENUES TO TOTAL APPROXIMATELY $95 MILLION AT FISCAL YEAR END.
UH, THIS IS 96.5% OF THE $98.4 MILLION BUDGET.
ON THE EXPENDITURE SIDE, WE ARE EXPERIENCING OR ANTICIPATE SAVINGS IN ALL CATEGORIES.
BY FISCAL YEAR END, UH, THE MAJORITY OF THE, UH, SAVINGS ARE BEING EXPERIENCED IN THE MATERIAL SUPPLIES AND SERVICE CATEGORY.
ALTHOUGH AS YOU CAN SEE THERE IS SAVINGS PROJECTED IN ALL CATEGORIES.
AT THE END OF THE FISCAL YEAR.
WE EXPECT, UH, BOTTOM LINE TOTAL GENERAL FUND EXPENDITURES TO BE $96.8 MILLION, WHICH IS 96.6% OF THE $100.2 MILLION GENERAL FUND BUDGET.
THIS IS THE SAME INFORMATION PRESENTED TOGETHER.
UH, AND TO SUMMARIZE, WE STARTED THE FISCAL YEAR WITH $62.2 MILLION IN TOTAL FUND BALANCE IN THE GENERAL FUND.
UM, THE $94.9 MILLION OF REVENUES, UH, AND $96.8 MILLION OF EXPENDITURES WE, UH, JUST DISCUSSED.
UH, AND WE WILL END FISCAL YEAR AT APPROXIMATELY $60.3 MILLION, WHICH IS CONVENIENTLY RIGHT WHERE WE BUDGETED.
BUT AS YOU CAN SEE, A LOT OF THAT'S THE RESULT OF THE $3.4 MILLION UNDER PERFORMANCE OF BOTH REVENUES AND EXPENDITURES AT YEAR END AS THAT IMPACTS FUND BALANCE, UH, AT FISCAL YEAR END.
UM, THIS IS A DEMONSTRATION OF THE CATEGORIZATION OF FUND BALANCE THAT WE STARTED THE FISCAL YEAR WITH AT THE TOTALING 62.2 MILLION.
AND HOW WE ANTICIPATE THE, THOSE BUCKETS TO BE FILLED AT FISCAL YEAR END.
THAT'S ASSUMING WE CATEGORIZE, UH, THE RESERVES IN THE SAME WAY WE TYPICALLY DO.
[02:25:01]
THE ADOPTION OF THE FY 25 BUDGET FOR THE WASTEWATER FUND, WE STARTED THE YEAR WITH $32.3 MILLION IN BUDGETARY FUND BALANCE.UM, WE HAVE OR PROJECT TO, UH, COLLECT $34.6 MILLION IN TOTAL REVENUES.
THIS IS $2.8 MILLION HIGHER THAN BUDGET.
THE EXPENDITURE SIDE, WE'RE ANTICIPATING $28.8 MILLION IN EXPENDITURES.
THIS IS APPROXIMATELY $13 MILLION UNDER BUDGET.
MOST OF THIS IS ASSOCIATED WITH CIP AND I WILL TOUCH ON THAT WHEN WE GET TO THE FIVE YEAR DISCUSSION.
UM, ALTOGETHER THIS ACTIVITY LEAVES US WITH A PROJECTED ENDING FISCAL YEAR, UH, BUDGETARY FUND BALANCE OF $38 MILLION IN THE WASTEWATER FUND.
VERY MINOR NUMBER OF BUDGET ADJUSTMENTS, UH, RECOMMENDED, UH, FOR THE FY 24 MIDYEAR.
UM, A COUPLE OF PERSONNEL ADJUSTMENTS, THESE ARE RECLASSIFICATIONS RE RECLASSIFICATIONS ARE DONE WHEN THE JOB CLASSIFICATION DOES NOT MATCH THE WORK ACTUALLY BEING PERFORMED.
IN THIS CASE, THE CITY CLERK'S OFFICE IS REQUESTING A RECLASSIFICATION OF AN ADMINISTRATIVE SECRETARY FROM A CUSTOMER SERVICE REPRESENTATIVE AND THE CITY'S CITY MANAGER'S OFFICE IS REQUESTING A RECLASSIFICATION OF SENIOR MANAGEMENT ANALYST FROM MANAGEMENT ANALYST.
ADDITIONALLY, WE STAFF RECOMMENDS THE, UH, AUTHORIZATION OF A COUPLE OF CAPITAL EXPENDITURES, A TRAILER FOR PARKS AND RECREATION TO, UH, HELP TRANSPORT THE CITY ATTORNEY'S TRACKLESS TRAIN, AND A COUPLE OF PIECES OF EQUIPMENT RELATED TO THE FIRE DEPARTMENT'S, UH, BREATHING APPARATUS.
THEY'RE SCBAS AND A BREATHING AIR COMPRESSOR FOR STATION SIX, I BELIEVE.
AT THIS POINT, I'D LIKE TO TRANSITION TO THE FIVE-YEAR BUSINESS PLAN.
UM, THIS IS THE TYPICAL CAVEAT I USUALLY SHARE, UH, IN CONJUNCTION WITH THIS WORK.
UM, IT DISCUSSES THE LIMITATIONS OF PROJECTIONS.
UM, PROJECTIONS SIMPLY ARE TAKING THE CONDITIONS IN PLACE TODAY AND ROLLING 'EM FORWARD INTO THE FUTURE.
UM, BASICALLY YOU'RE AT THE START OF A PATH.
WE'RE GUESSING WHERE THAT PATH ENDS BASED ON WHAT WE'RE CURRENTLY DOING.
UM, THAT HIGHLIGHTED SENTENCE PROJECTION SHOULD THEREFORE BE USED AS A PLANNING TOOL AND TO IDENTIFY STRUCTURAL FLAWS.
THIS CAVEAT THIS YEAR IS PROBABLY MORE IMPORTANT THAN MOST YEARS.
WE SEE SOME PRETTY SIGNIFICANT CHANGES IN THIS YEAR'S, UM, ADDITION, WE'LL TALK ABOUT THE IMPACTS AND WHAT THEY MEAN AS WE MOVE ALONG.
UM, BUT IT'S IMPORTANT TO REALIZE THAT THIS IS A MECHANISM TO THROW A RED FLAG AND DRAW ATTENTION TO A POTENTIAL ISSUE AND NOT NECESSARILY A, UH, PREDICTION THAT THIS IS FOR SURE WHAT'S GONNA HAPPEN.
AND COMPEL IMMEDIATE REACTION BEFORE WE GET INTO THE FIVE YEAR WORK.
UH, BRIEF UPDATE ON THE ECONOMY.
UM, A MIXED BAG OF INDICATORS ON THE ECONOMY SEEMS LIKE THERE HASN'T BEEN ANYTHING CONSISTENT OR STABLE SINCE 2019.
UH, INFLATION AS OF MARCH 24 WAS 3.5% OVER THE LAST 12 MONTHS.
UM, THAT IS IN EXCESS OF THE 2%.
THE FEDERAL RESERVE, UH, TARGETS.
THAT IS HOWEVER, QUITE A BIT BETTER THAN IT HAS BEEN IN THE LAST COUPLE OF YEARS.
GDP AND FY 22 GREW AT 1.9%, AND IN FY 23 IT GREW 2.5%.
BOTH OF THESE ARE VERY MODEST NUMBERS.
UM, HOWEVER, UH, SILVER LINING MAY BE STRONG GROWTH AT THE SECOND HALF OF FY 23 WITH 4.9% GROWTH IN Q3 AND 3.5% IN Q4.
UM, FY 24 FIRST QUARTER, UH, WON'T BE RELEASED.
ACTUALLY, IT'S DUE TO BE RELEASED ABOUT, ABOUT THIS TIME OF YEAR.
UM, ON THE UNEMPLOYMENT FRONT, NATIONAL UNEMPLOYMENT, UH, AS OF MARCH, UH, 2024 IS 3.8%.
THAT IS ACTUALLY UP FROM 3.5 A YEAR AGO.
SO WE ARE SLIPPING A LITTLE BIT THERE.
HOWEVER, UH, MOST ECONOMISTS CONSIDER FULL EMPLOYMENT TO BE BETWEEN THREE AND 6%.
SO NATIONALLY THAT NUMBER IS, IS STILL PRETTY GOOD.
CALIFORNIA, HOWEVER, IS A LITTLE BIT CONCERNING.
UH, IN MARCH OF 2024, CALIFORNIA UNEMPLOYMENT IS 5.3%, WHICH IS STILL IN THAT 3.3 TO 6% RANGE, BUT IT, IT HAS GROWN FROM 4.5%, UH, A YEAR AGO.
SO THAT'S SOMETHING WE PROBABLY NEED TO BE AWARE OF AND KEEP OUR EYES ON.
UM, THE POTENTIAL FOR A CALIFORNIA ECONOMY WITHIN THE GREATER ECONOMY PRESENTED HERE IS THE TABLE OF THE PROJECTED 10 YEAR RESULTS IN THE GENERAL FUND.
UH, TYPICALLY I PRESENT THIS SLIDE WITH ZERO EXPECTATION OF EVERYONE READING EVERY NUMBER ON IT.
I DO WANNA DRAW ATTENTION TO THE FAR RIGHT HAND COLUMN.
[02:30:01]
UM, WE ARE PROJECTING SHORTFALLS IN FUNDING STARTING THIS YEAR AND GROWING OVER THE NEXT 10 YEARS.UM, WE'LL GET IT A LITTLE MORE DETAIL AS TO WHY AS WE MOVE ALONG.
I DO HOWEVER, WANNA DRAW SPECIAL ATTENTION, UH, TO THOSE SHORTFALLS IN FY 28, FY 29, AND IN FY 30, THAT IS PROP J SUN SETTING.
UM, UNFORTUNATELY YOU DON'T SEE IT IN ONE BIG CHUNK.
FY 29 IS THE FINAL YEAR THAT WE WILL HAVE PROP J BEING COLLECTED.
UM, WE WILL ONLY COLLECT THREE QUARTERS OF A YEAR, SO 28 TO 29 IS A ONE QUARTER DROP, AND THEN THE FOLLOWING YEAR IS THE FULL THREE QUARTERS.
JUST FOR COMPARISON TO WHY THIS IS SUCH A BIG CHANGE, UH, PRESENTED HERE AS THE SAME TABLE ON THE LEFT FOR THE CURRENT YEAR'S FIVE YEAR PLAN, UH, ALONGSIDE LAST YEAR'S FIVE YEARS NUMBERS, I'VE HIGHLIGHTED, UH, THAT CHANGE IN FUND BA BALANCE, THE FAR RIGHT HAND COLUMN.
UH, LAST YEAR AT THIS TIME WE WERE PROJECTING, UH, EXCESS REVENUES FOR THE OUTLYING YEARS UNTIL WE HIT THE DROP OFF FROM PROP J.
HOWEVER, EVENTS HAVE UNFOLDED SINCE THEN.
UM, AND WE ARE CURRENTLY PROJECTING SHORTFALLS IN ALL 10 YEARS OF THE PROJECTION WINDOW.
QUESTION THAT'S BEGGED, OF COURSE, IS WHY WE HAVE THREE PRIMARY DRIVERS THAT ARE DRIVING THIS CHANGE.
THE FIRST THAT I'D LIKE TO DISCUSS IS ON THE REVENUE SIDE.
ON THE INFLOW SIDE, WE DISCUSSED, UH, IN THE MID-YEAR PORTION OF THIS PRESENTATION THAT SALES TAX HAS COME IN SOFT AS WELL AS THE, UH, PROPERTY TAX ADJUSTMENT.
AND YOU CAN SEE IN ALL YEARS TO THE ADJACENT YEAR, OR THE SAME NUMBERS FROM LAST YEAR, IT'S APPROXIMATELY A $2 MILLION SHORTFALL.
UM, WHEN YOU GRAPH THAT PERFORMANCE, UM, YOU SEE PRETTY MUCH THE PATTERN YOU WOULD EXPECT TO SEE IN THIS GRAPH.
THE, UH, FIVE YEAR NUMBERS FROM LAST YEAR ARE THE ORANGE NUMBERS.
THE CURRENT YEARS ARE THE BLUE.
UM, THIS IS A TYPICAL PATTERN THAT YOU'LL SEE WHEN YOU HAVE SOMETHING LIKE SALES TAX.
SALES TAX DOESN'T FALL UP, AND THEN YOU MAKE IT UP THE NEXT YEAR.
IT BASICALLY RESETS THE CLOCK AND YOU START GROWING AGAIN.
SO IT'S JUST LIKE A YEAR LOST.
SO TYPICALLY WHAT YOU'LL SEE IS THE SAME SHAPE JUST SHIFTED OVER TO ACCOMMODATE THE, THE WELL EFFECTIVELY SOMEONE HITTING THE PAUSED BUTTON.
UM, HERE AGAIN, THE SHAPE OF THE LINE IS INTERESTING.
J FALL OFF MINOR DIP FROM 28 TO 29 FOR THE LOSS OF THE ONE QUARTER.
AND THEN, UH, 29 TO 30 IS WHEN IT REALLY DROPS OFF ON THE EXPENDITURE SIDE, UH, WE SEE SIGNIFICANT CHANGE HERE.
UM, THIS PROJECTION, UH, THE PROJECTED EXPENDITURES, UH, IN THIS WORK, UH, WANNA ADDRESS TWO THINGS THAT HAVE BEEN TALKED ABOUT BY THE CITY COUNCIL QUITE A BIT RECENTLY.
UM, ONE THING THAT IS INCLUDED ARE, UH, THE ESTIMATED NUMBERS FROM THE TENTATIVE AGREEMENT WITH THE POLICE OFFICERS ASSOCIATION.
HOWEVER, IT DOES NOT INCLUDE ANY OF THE, UH, COSTS ASSOCIATED WITH THE NEW ENGINE COMPANY THAT'S BEING DISCUSSED.
UM, IN FY 25, THAT EXPENDITURE NUMBER, UH, NEXT YEAR, UH, HAS CHANGED BY $2.8 MILLION FOR REFERENCE.
1.8 OF THE 2.8 IS FROM, UH, CALPERS INCREASING THE UAL CONTRIBUTION.
UH, AND THE REMAINDER IS FROM THE IMPACTS OF THE POA AGREEMENT.
WHEN YOU PLOT THIS INFORMATION, THESE ARE WHAT THE TWO LINES LOOK LIKE.
THE ORANGE LINE AGAIN, IS LAST YEAR'S NUMBERS.
THE BLUE LINE IS THIS YEAR'S NUMBER.
UM, EXPENDITURES UNLIKE REVENUE DO TAKE ON A DIFFERENT SHAPE BECAUSE THERE IS A COMPOUNDING EFFECT OF A RAISE ON TOP OF A RAISE ON TOP OF A RAISE, THAT KIND OF THING.
UM, AS WELL AS THE ESCALATION OF HOW, UH, CALPERS ROLLS IN THEIR AMORTIZATION OF THE UAL.
BRING THIS BACK TO WHERE WE STARTED WITH THE CHANGE IN FUND BALANCE.
UM, OBVIOUSLY THESE PROJECTED SHORTFALLS ARE A PROBLEM THAT NEED ATTENTION.
UM, WHEN YOU GRAPH THE IMPACTS TO FUND BALANCE, THIS IS WHAT IT LOOKS LIKE.
THE ORANGE LINE IS LAST YEAR'S FIVE YEAR, AND OUR GENERAL FUND RESERVE BALANCES FOR THE NEXT 10 YEARS.
THE BLUE LINE IS WITH THESE PROJECTED SHORTFALLS ROLLED IN, UM, WITH NO MITIGATION OR CHANGES IN THE ENVIRONMENT.
UH, GENERAL FUND RESERVES ARE PROJECTED TO GO TO ZERO IN FY 31.
[02:35:04]
SO BEFORE WE START DISCUSSING, HOW DO YOU ADDRESS A CONDITION LIKE THIS? UH, I THINK IT'S IMPORTANT TO REVISIT HOW WE GOT TO WHERE WE ARE AND I THAT MAY INFLUENCE SOME OF THE DECISIONS WE MAKE GOING FORWARD AND HOW WE MITIGATE SOME OF THESE PROBLEMS. UH, GRAFT HERE IS THE 10 YEAR HISTORY OF THE GENERAL FUND.THE BLUE LINE IS TOTAL GENERAL FUND REVENUE, AND THE GOLD LINE OR ORANGE LINE GO WITH ORANGE LINE, UH, IS TOTAL GENERAL FUND EXPENDITURES OVER THAT 10 YEAR PERIOD.
THEY BOTH, AS YOU CAN SEE, KIND OF FOLLOW VERY SIMILAR SHAPE, UM, IN THOSE YEARS WHERE THE ORANGE LINE IS BELOW THE BLUE LINE ARE, ARE WHERE THE SURPLUSES WERE GENERATED, WHICH IS HOW WE GREW FUND BALANCE FOR COMPARISON'S SAKE.
UH, THROUGHOUT THE NEXT SERIES OF GRAPHS, I'VE TRIED TO KEEP ALL THE LINES THE SAME COLOR.
SO, UM, TOTAL GENERAL FUND REVENUES ARE STILL BLUE AND WILL BE BLUE.
TOTAL EXPENDITURES ARE ORANGE.
THE NEW LINE HERE IS, UH, GENERAL FUND SPENDING ON PUBLIC SAFETY.
I WANTED TO SHARE THIS BECAUSE THIS DEMONSTRATES THE COUNCIL'S COMMITMENT TO INVESTING IN PUBLIC SAFETY FOR THIS COMMUNITY.
UM, AS REVENUES HAVE GONE UP, SO TOO HAS OUR EXPENDITURE ON PUBLIC SAFETY.
HOWEVER, THERE IM THERE ARE IMPLICATIONS OF THAT STRATEGY AND PRIORITIZATION.
THE BLUE LINE IS STILL SHOWN, IT'S STILL GENERAL FUND REVENUES JUST FOR, UH, REFERENCE.
AND THE GRAY LINE IS STILL, UH, PUBLIC SAFETY SPENDING IN THE GENERAL FUND.
BUT THE GREEN LINE IS NON-PUBLIC SPENDING IN THE GENERAL FUND.
AND AS YOU CAN SEE OVER THE LAST 10 YEARS, UH, THAT EXPENDITURE HAS BEEN FAIRLY FLAT ZERO, VIRTUALLY ZERO GROWTH OVER 10 YEARS.
YOU KNOW, INFLATION DOES RUN ITS COURSE IN 2014, $1, WELL, $1 WAS $1 IN 2014 IN 2023, HOWEVER, THAT DOLLAR, UH, WAS A DOLLAR 32.
SO BY HOLDING IT FLAT, WE HAVE EFFECTIVELY CUT NON-PUBLIC SAFETY SPENDING BY APPROXIMATELY 25% OVER THE LAST 10 YEARS.
SO HOW THAT IMPACTS US IS WHEN YOU LOOK AT THE CONTRIBUTION OF THE GENERAL FUND BY ITS TWO COMPONENT UNITS, UH, PUBLIC SAFETY AND NON-PUBLIC SAFETY.
WE STARTED FY 24 OR STARTED THE SERIES FYE 2014 WITH PUBLIC SAFETY, UH, COMPRISING APPROXIMATELY 58% OF THE GENERAL FUND AND NON-PUBLIC SAFETY, APPROXIMATELY 42% OF THE GENERAL FUND.
AND WE ENDED FY 23 WITH PUBLIC SAFETY AT 72% AND NON-PUBLIC SAFETY AT 28%.
IT'S UNAVOIDABLE TO ALSO JUMP TO THIS QUESTION.
UH, THIS IS THE BLUE LINE IS STILL GENERAL FUND TOTAL EXPEND OR TOTAL REVENUES.
THE RED LINE IS TOTAL GENERAL FUND PERSONNEL EXPENSE, NOT JUST PUBLIC SAFETY, BUT TOTAL PERSONNEL EXPENSE.
AND THE BLUE LINE IS NON PERSONNEL EXPENSE IN THE GENERAL FUND.
AND YOU CAN KIND OF SEE THE IMPLICATION.
THERE'S A PRETTY EASY CONCLUSION TO DRAW WHERE THAT LEAVES US.
HOWEVER, THIS IS AS OF THE FY 24 BUDGET, DOES NOT INCLUDE, UH, ANY CHANGES FOR FY 25, MOST NOTABLY THE, UM, POA, UH, TENTATIVE AGREEMENT NUMBERS OR, UH, THE PROPOSED NEW ENGINE COMPANY.
UH, SO AT THE END OF, OR THE BUDGET FOR FY 24 PUBLIC SAFETY PERSONNEL, UH, COUNTED FOR APPROXIMATELY 60% OF TOTAL GENERAL FUND SPENDING WITH, YOU CAN KINDA SEE WHAT'S LEFT OVER FOR EVERYONE ELSE.
NON-PERSONNEL AND NON-PUBLIC SAFETY.
FORTUNATELY, OR BY COINCIDENCE, WHERE THE, UH, GENERAL FUND BUDGET IS, IT'S APPROXIMATELY A HUNDRED MILLION DOLLARS RIGHT NOW.
SO IF YOU WANT TO THINK ABOUT THIS IN DOLLAR TERMS IS NOT TOO TOUGH.
IT'S 60 MILLION OF THE A HUNDRED MILLION PAYS FOR OUR FIREFIGHTERS AND POLICE OFFICERS.
AND I BRING THIS TO YOUR ATTENTION, UH, AND IT KIND OF DOVETAILS A LITTLE BIT TO THE COMMENTS THE CITY MANAGER HAD A LITTLE EARLIER.
WE GET TO A POINT WHERE WE HAVE TO REDUCE SPENDING, WHETHER IT BE FOR PROP J SUN SETTING OR TO ADDRESS SHORTFALLS.
THERE REALLY ISN'T A WHOLE LOT LEFT TO CUT OTHER THAN POLICE AND FIRE.
AND THAT'S SOMETHING WE NEED TO BE VERY AWARE OF.
SO I LEAVE YOU WITH THESE CONCLUDING THOUGHTS THAT WE ARE LOOKING AT A, A TIME OF CHANGE IN GOING FORWARD WITH THIS.
THESE ARE PROBLEMS THAT AREN'T MAGICALLY GOING TO GO AWAY.
HOWEVER, THIS IS A VERY SLOW MOVING ICEBERG.
THIS IS A TIME TO HAVE A STEADY HAND, NOT OVERREACT.
EVERYONE WANTS TO MAINTAIN OUR PRIORITIES AND NOT GIVE
[02:40:01]
UP ON 'EM.HOWEVER, IN ORDER TO DO SO OVER THE LONG TERM, WE DO NEED TO FIND LONG-TERM SOLUTIONS AND NOT BANDAIDS TO MAKE THIS WORK.
UM, AND I'LL CHANGE GEARS ON YOU.
UH, GETTING BACK TO WASTEWATER NOW AND HOW THEIR PROJECTIONS WORK.
UH, IN ALL THE YEARS PROJECTED FOR THE WASTEWATER FUND, WE ARE, UH, PROJECTING, UH, EXCESS REVENUES THAT IS REVENUES IN EXCESSIVE EXPENDITURES.
UM, THIS, AS I ALLUDED TO EARLIER IN THE MID-YEAR DISCUSSION, UH, STILL TIED TO CIP, IT'S VERY TYPICAL FOR CIP PROJECTS TO COLLECT MONEY IN ADVANCE OF DOING THE WORK.
AND I THINK YOU SEE THIS ADDITIONALLY, UM, I DID GET A SNEAK PEEK AT WHAT WAS REQUESTED FOR THE FY 25 BUDGET.
WE DO HAVE A COUPLE OF REQUESTS FOR FAIRLY HIGH DOLLAR, UH, WASTEWATER PROJECTS IN THERE, BUT PROBABLY MOST IMPORTANTLY, THAT WILL DRIVE CHANGES IN THESE NUMBERS OVER THE NEXT COUPLE OF YEARS IS WASTEWATER IS WORKING TO DEVELOP A NEW MASTER PLAN, WASTEWATER MASTER PLAN.
AND THAT WILL BE THE FOUNDATION FOR DEVELOPING A LONGER TERM CIP PLAN.
SO HOPEFULLY AS THAT WORK COMES TO CO CONCLUSION, YOU'LL SEE THESE NUMBERS CHANGE AND SOME OF THOSE, SOME OF THOSE EXCESS MONIES, UH, BE COMMITTED TO THAT PURPOSE.
SO LOOKING FORWARD TO THE FY 25 BUDGET.
UM, AS SOON AS WE HAVE THE DOCUMENT PREPARED, WE WILL HAVE IT IN YOUR HANDS FOR REVIEW.
UM, HOWEVER, NO LATER THAN JUNE 11TH, AT A MINIMUM WE WILL INTRODUCE SOME SUMMARY INFORMATION AND, UH, BEGIN DISCUSSIONS WITH THE CITY COUNCIL.
UM, AND THEN RETURN JUNE 25TH FOR ADOPTION OF THE FY 25 BUDGET.
SO TODAY'S, UH, RECOMMENDED ACTION, UH, STAFF ASKS THAT THE CITY COUNCIL, UH, RECEIVES AND ACCEPTS THE TWO REPORTS AS WELL AS AUTHORIZED THE PROPOSED PERSONNEL CHANGES AND CAPITAL EXPENDITURES DETAILED HERE.
AND THAT CONCLUDES MY PRESENTATION.
I'M HAPPY TO ANSWER ANY QUESTIONS YOU HAVE.
UM, LEMME SEE IF THERE'S ANY QUESTIONS FOR CLAY.
UM, PRETTY DETAILED AS ALWAYS.
WE HAVE A NEW DEALERSHIP COMING IN THE HYUNDAI, THEY'RE, THEY'RE A NEW DEALERSHIP, CORRECT? OR IS IT A NEW LOCATION? YEAH, JUST A RELOCATION.
I WAS HOPING WE'D GET, WE DO HAVE, REMEMBER THE CARMAX IS COMING IN TOO, BUT WE ALSO LOST WALMART, SO THEY KINDA OFFSET EACH OTHER.
VERY, UH, HIGH LEVEL QUESTION, CLAY.
AND ALL THE OTHER, UH, DEPARTMENT HEADS.
WE APPRECIATE YOUR WORK ON THIS.
UM, BASED OFF OF THE PROJECTIONS OF GENERAL FUND REVENUE AND EXPENDITURES, AM I TO UNDERSTAND THAT EVEN IF THE EXTENSION FOR PROP J PASSES, WE'RE STILL NOT OUT OF THE WEEDS WITH REGARD TO DIPPING INTO OUR RESERVES TO COVER, THERE ARE A NUMBER OF ISSUES THAT NEED TO BE ADDRESSED.
SO IF ACTION IS NOT TAKEN BEFORE, THEN WE WILL NEED TO USE RESERVES TO MAINTAIN OUR SERVICE LEVELS.
NO, SO, UM, BASED UPON PROJECTIONS, UM, ASSUMING LET'S SAY, LET'S ASSUME THAT PROP J GETS EXTENDED, UM, YOU PROBABLY DON'T HAVE THE NUMBER RIGHT NOW, BUT WOULD YOU BE ABLE TO GIVE US AN IDEA OF HOW MUCH MONEY WE EITHER HAD TO CUT OR BRING IN, IN, IN EXCESSIVE REVENUES TO MAINTAIN THE STATUS QUO? WELL, THOSE, YEAH, ACTUALLY IT'S S WITHOUT ANY CHANGES TO EXPENDITURE, ANY ADDITIONAL MONEY WOULD BE WHAT THAT DEFICIT IS IN THE ORANGE COLUMN.
SO, FOR EXAMPLE, NEXT YEAR, ON TOP OF WHAT PROP J IS EXPECTED, WE'D NEED TO GENERATE AN ADDITIONAL $3.6 MILLION.
SO THEN WHEN YOU GET OUT, FOR EXAMPLE, INTO THE OUTLYING YEARS, LIKE FY 31 FOR EXAMPLE, PROP J AT THAT POINT WOULD BE 15 AND A HALF MILLION DOLLARS MAYBE.
SO YOU NEED TO GENERATE ANOTHER 5.3 MILLION.
SO I SEE IT GOING UP SOME 80% BETWEEN 25 AND 26 AND THEN IT DROPS IN 27.
DO YOU, WHAT'S THAT ATTRIBUTED TO AND THE SHORTFALL? UM, I WOULD ANTICIPATE THAT PROBABLY IS TIED TO ONE OF TWO THINGS.
UH, I WOULD SAY THAT IS EITHER THE END OF ONE OF OUR MOUS WHERE WE'RE
[02:45:01]
GOING FROM A NO NUMBER TO AN ASSUMED NUMBER OR THAT IS A CHANGE IN CALPERS AMORTIZATION OF THEIR UAL.SO WHAT I'D LIKE TO GET, JUST FROM MY OWN MIND, SOME IT DOESN'T HAVE TO BE RIGHT NOW, IS WE HAVE A BASE NUMBER THAT LIKE NEXT YEAR WE HAVE TO COME UP WITH ANOTHER $3.6 MILLION TO, TO MAINTAIN STATUS QUO.
UM, IS, IS THERE GONNA BE A RHYME OR REASON ABOUT HOW MUCH PERCENTAGE EACH YEAR WE'RE GOING TO HAVE TO INCREASE TO STAY SOLVENT? WELL, IT'S ALWAYS A COMBINATION OF SEVERAL DIFFERENT THINGS.
UH, I THINK THERE ARE MANY DEPARTMENTS IN THE CITY THAT ARE ACTIVELY EXPLORING ADDITIONAL SOURCES OF REVENUE.
UM, YOU COULD ALWAYS OUT REVENUE THIS PROBLEM, YOU KNOW, IF WE FIND A, A GOLDEN UH, GOLDEN EGG LAYING GOOSE, YOU KNOW, THEN WE DON'T CUT ANYTHING.
HOWEVER, MORE LIKELY THAN NOT, IT'LL HAVE TO BE SOME SORT OF COMBINATION OF THINGS.
IT SEEMS TO BE, IT'S KIND, KIND OF A BIG PART OF OUR JOB IS TO WORKING WITH STAFF TO TRY TO THINK ABOUT WAYS WE CAN BRING MORE REVENUE INTO THE CITY OF OBVIOUSLY, UH, CUTTING IS ALWAYS A POSSIBILITY.
BUT YOU'VE SAID YOURSELF THAT THERE'S NOT NOT MUCH TO CUT, SO, ALRIGHT, WELL GRAHAM, YOU'LL WORK WITH US ON THAT, RYAN, WE JUST, I THINK I STILL DON'T HAVE A, A, A REAL GOOD SENSE OF YEAR OVER YEAR WHAT, HOW BAD IT'S GOING TO BECOME.
WELL, AS MR. SHANE MENTIONED, THE REASON WE DO THE FIVE-YEAR PLAN, IT GIVES US, IT GIVES US A, A PILOT POINT IN THE FUTURE.
SO WE KIND OF KNOW WHERE WE NEED TO GO NOW, NOW WE KNOW THAT AS WE DIVE INTO THE DETAILS, AS WE PREPARE NEXT YEAR'S BUDGET, OUR GOAL AS A CITY COUN, AS A, AS A STAFF TO THE CITY COUNCIL IS TO PRESENT A BUDGET THAT'S BALANCED, RIGHT? AND, AND THERE MAY BE SOME HARD DECISIONS AND, UM, AS PART OF THAT, AND THEN SO YEAR AFTER YEAR WE CAN LOOK AT THAT AND THEN WE CAN REASSESS WHERE THE NUMBERS GO IF THE ECONOMY BOUNCES BACK FASTER.
I MEAN 1% GROWTH IN SALES TAX DOES A HUGE DIFFERENCE IN THAT, THOSE NUMBERS THERE.
SO THESE ARE LONG TERM PROJECTIONS AND AS, AS MR. SHANE SAID IT, THE STEADY HAND IS WHAT'S IMPORTANT, BUT IT GIVES US SOME SENSE OF, NOW'S NOT THE TIME TO THROW PARTIES, NOW'S THE TIME TO BE FRUGAL.
OKAY, WELL THAT HELPS A LOT MORE QUESTIONS BEFORE I LET CLAY GO.
COME BACK WITH BETTER NEWS NEXT TIME, PLEASE.
UM, ANY SPEAKER CARDS ON THE ITEM? NO SPEAKER CARDS, SIR.
I CAN MAKE A MOTION JUST ONE SECOND HERE.
YEAH, GO AHEAD AND MAKE A MOTION AND I'VE GOT A COUPLE COMMENTS BEFORE WE VOTE.
UH, WE, THE ADVANCED WATER PURIFICATION PROGRAM WILL NOT NEED CAPITAL FROM THE CITY OF EL CAJON, SO THAT'S GOOD.
YOU'RE GONNA GO TO MARKET TO BORROW ABOUT $300 MILLION FOR THE BRIDGING OF CASH.
SO, UH, NO CASH NEEDED FROM THE A WP.
UH, TODAY THE MTS BUDGET COMMITTEE RECEIVED SALES TAX FROM SANDAG AND THEIR CONSULTANT.
I THINK THEY'RE PLANNING A 2.9% INCREASE IN THE SALES TAX.
SO THEY'RE, THEY'RE A LITTLE OPTIMISTIC THIS YEAR JUST AS A DATA POINT.
UM, NOW THE BIGGER PICTURE IS WE HAVE TO INCREASE REVENUE SOMEHOW.
I AM CONCERNED ABOUT SOME OF THE, WELL, LET ME PUT IT THIS WAY.
IT'S IMPORTANT THAT WE GET SALES TAX GENERATING BUSINESSES IN THE COMMUNITY AND EVERY TIME THAT WE HAVE A SERVICE ORGANIZATION GO IN, THEY PROVIDE GREAT SERVICE TO THE COMMUNITY, BUT WE DON'T GET SALES TAX FROM SERVICES.
SO, UH, IF THERE IS A, UH, I, WELL THE, I'LL JUST LEAVE IT AT THAT.
IT'S IMPORTANT THAT WE ZONE FOR SALES TAX GENERATING BUSINESSES AND NOT ZONE FOR IT, BUT ENCOURAGE THROUGH ECONOMIC DEVELOPMENT EFFORTS, UH, BECAUSE WE CERTAINLY HAVE A LOT OF NON-SALES TECH GENERATING BUSINESSES WHICH PROVIDE A NON-MONETARY VALUE.
BUT THIS SHOWS WE'RE GONNA NEED THOSE MONETARY VALUES AS WELL.
ANY OTHER COMMENTS? WOULD I LIKE TO MAKE A MOTION? YEAH, I'LL, I'LL MAKE THE MOTION TO RECEIVE AND ACCEPT THE MID-YEAR REPORT AND FIVE-YEAR BUSINESS PLAN UPDATE.
AUTHORIZE THE PROPOSED PERSONNEL CHANGES AND AUTHORIZE THE PROPOSED CAPITAL EXPENDITURES DETAILED IN THE REPORT.
MOTION CARRIES BY UNANIMOUS VOTE OF THOSE PRESENT.
[12. Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023, and Other Written Communication from the City's Independent Auditor RECOMMENDATION: That the City Council receives and accepts the Annual Comprehensive Financial Report and other written communication from the independent accounting firm of Rogers, Anderson, Malody & Scott, LLP, for the fiscal year ended June 30, 2023.]
THE ANNUAL COMPREHENSIVE FINANCIAL REPORT AND OTHER WRITTEN COMMUNICATION FROM THE CITY'S INDEPENDENT AUDITOR.[02:50:01]
TELL US ABOUT THIS ITEM, PLEASE.STILL HAPPY, UH, THIS TIME FOR NOW.
UM, TODAY'S PRESENTATION WILL INCLUDE AN INTRODUCTION OF THE ACT FOR AND ITS PARTS, UM, AND CONCLUDING OUR PRESENTATION.
I WILL ASK THE CITY COUNCIL, UH, RECEIVES AND ACCEPT THE FER.
THE FER IS AVAILABLE ELECTRONICALLY ON THE CITY'S WEBSITE, EL CAJON.GOV.
THE FER IS PREPARED AND CONFORMITY WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND ADHERES TO THE PRONOUNCEMENT OF THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD.
THE PRIMARY F FOCUS OF THIS DOCUMENT IS THE COMPARABILITY BETWEEN STATE AND LOCAL GOVERNMENTS.
AND IT IS COMPRISED OF THREE SECTIONS, THE INTRODUCTORY SECTION, FINANCIAL SECTION, AND THE STATISTICAL SECTION.
THE INTRODUCTORY SECTION INCLUDES THE LETTER OF TRANSMITTAL FROM THE CITY MANAGER AND THE DIRECTOR OF FINANCE AND A BRIEF DESCR DESCRIPTION OF THE ORGANIZATION.
THE FINANCIAL SECTION IS THE MEAT AND POTATOES SECTION OF THE REPORT.
IT INCLUDES THE INDEPENDENT AUDITOR'S REPORT.
UM, THIS FISCAL YEAR, WE AGAIN RECEIVED A CLEAN AUDIT OPINION.
UH, THE MANAGEMENT'S DISCUSSION AND ANALYSIS IS A, UH, REQUIRED DISCUSSION OF SIGNIFICANT CHANGES IN VARIANCES FROM YEAR TO YEAR.
UM, IT ALSO INCLUDES BASIC FINANCIAL STATEMENTS, THE NOTES TO THE BASIC FINANCIAL STATEMENTS, AS WELL AS REQUIRED SUPPLEMENTAL UH, INFORMATION.
THE STATISTICAL INFORMATION CONTAINS, UH, 10 YEAR HISTORIES, UH, OF FINANCIAL TRENDS, REVENUE CAPACITY, DEBT CAPACITY, DEMOGRAPHIC AND ECONOMIC INFORMATION, AS WELL AS OPERATIONAL INFORMATION.
THAT CONCLUDES MY PRESENTATION.
AND I, UH, STAFF RECOMMENDS THAT THE CITY COUNCIL RECEIVES AND ACCEPTS THE ANNUAL COMPREHENSIVE FINANCIAL REPORT AND OTHER WRITTEN COMMUNICATIONS FROM OUR OUTSIDE AUDITORS.
ALRIGHT, LET ME SEE IF THERE'S QUESTIONS FOR YOU.
NO, UM, ARE THE SPEAKER CARDS ON THIS ITEM? NO SPEAKER CARDS, SIR.
ALRIGHT, THEN I LEAVE IT TO THE COUNCIL.
SOMEBODY LIKE TO MAKE A MOTION.
I THINK WE JUST NEED TO, UH, ACCEPT AND RECEIVE THE REPORT.
MOTION CARRIES BY UNANIMOUS VOTE OF THOSE PRESENT.
ITEM 14 IS MY ACTIVITIES REPORT.
[15. COUNCILMEMBER STEVE GOBLE MTS (Metropolitan Transit System Board); East County Advanced Water Purification Joint Powers Authority Board; Chamber of Commerce – Government Affairs Committee; SANDAG – Board of Directors – Alternate; SANDAG Public Safety Committee – Alternate.]
GOBEL AS REPORTED COUNCIL MEMBER MITCHELL[17. COUNCILMEMBER MICHELLE METSCHEL Harry Griffen Park Joint Steering Committee; METRO Commission/Wastewater JPA – Alternate; Heartland Communications – Alternate; Heartland Fire Training JPA – Alternate.]
AS REPORTED AND COUNCIL MEMBER[18. DEPUTY MAYOR PHIL ORTIZ League of California Cities, San Diego Division; East County Economic Development Council; MTS (Metropolitan Transit System Board) – Alternate; East County Advanced Water Purification Joint Powers Authority Board – Alternate; Chamber of Commerce – Government Affairs Committee – Alternate.]
ORTIZ AS REPORTED.UH, UM, THERE ARE NO GENERAL INFORMATION ITEMS AND NO FIRST OR SECOND READINGS ON TODAY'S AGENDA.
AND THAT BRINGS US TO CLOSED SESSION.
[23. CLOSED SESSIONS:]
THE CITY ATTORNEY WILL RECITE THE TITLE AND LEAD US INTO THE CLOSED SESSION.WELL, THE CITY COUNCIL'S GOING TO, UH, RECESS AND, UH, INTO CLOSED SESSION ON FOUR FOUR ITEMS. FIRST ONE IS A CLOSED SESSION FOR CONFERENCE WITH LEGAL COUNSEL ON ANTICIPATED LITIGATION, SIGNIFICANT EXPOSURE LITIGATION PURSUANT TO PARAGRAPH TWO OF SUBDIVISION D OF GOVERNMENT CODE SECTION 5 49 56 9 1 POTENTIAL CASE.
SECOND ITEM NUMBER 21 IS CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 5 4 9 5 6 0.8.
PROPERTY IS AT 4 25 WEST MAIN STREET.
THE NEGOTIATING PARTY IS HOLLA INC.
AND THE CITY NEGOTIATORS OF THE CITY MANAGER, ASSISTANT CITY MANAGER, AND CITY ATTORNEY.
UNDER NEGOTIATION ARE THE PRICE AND TERMS OF PAYMENT FOR ACQUISITION OF PROPERTY.
ITEM 22 IS A CLOSED SESSION FOR, AGAIN, FOR CONFERENCE RURAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 5 4 9 5 6 0.8.
THE PROPERTY IS AT 10 50 VERNON WAY CALIFORNIA, UH, EL CAJON.
THE NEGOTIATING PARTY IN THIS CASE WOULD BE TO, UH, AS A TENANT WOULD BE USA WASTE OF CALIFORNIA INC.
AND THE CITY'S NEGOTIATORS OR THE CITY MANAGER, ASSISTANT CITY MANAGER, CITY ATTORNEY UNDER NEGOTIATION
[02:55:01]
OF PRICE IN TERMS OF PAYMENT FOR LEASE OF PROPERTY.AND FINALLY, ITEM NUMBER 23 IS A CLOSED SESSION FOR PUBLIC EMPLOYEE PERFORMANCE EVALUATION.
THE OFFICE IS THAT OF THE CITY MANAGER.
UH, I'LL MAKE A MO MAKE A MOTION TO ADJOURN THE CLOSED SESSION.
MOTION CARRIES BY UNANIMOUS VOTE OF THOSE PRESENT.
WE'RE GONNA CLOSE SESSION THEN WE'LL COME BACK IN A FEW MINUTES TO CONCLUDE THE MEETING.
LADIES AND GENTLEMEN, WE ARE BACK FROM CLOSED SESSION.
I'LL ASK OUR CITY ATTORNEY TO REPORT ON WHAT HAPPENED.
CLOSED SESSION FOR CONFERENCE COUNCIL
CLOSED SESSION FOR CONFERENCE OF REAL PROPERTY NEGOTIATORS DIRECTION WAS GIVEN TO THE CITY'S NEGOTIATORS.
AM I MISSING ONE? OH 20? UM, ITEM 20.
I'M LOOKING, HAVE I WRONG ONE? I DIDN'T HAVE THE, I'M SORRY, I DIDN'T HAVE THE REVISED AGENDA.
ITEM 22, CONFERENCE WITH, UH, REAL PROPERTY NEGOTIATORS DIRECTION WAS GIVEN TO THE NEGOTIATING TEAM.
AND ITEM THREE, THE PERFOR, UH, PUBLIC EMPLOYEE PERFORMANCE EVALUATION FOR THE CITY MANAGER WAS PERFORMED AND COMPLETED.
THIS BRINGS US TO ADJOURNMENT, THE ADJOURNED REGULAR JOINT MEETING OF THE ELCON CITY COUNCIL.
EL CAJON HOUSING AUTHORITY SUCCESSOR AGENCY TO THE ELCON REDEVELOPMENT AGENCY.
HELD THIS 23RD DAY OF APRIL, 2024 IS ADJOURNED TILL TUESDAY, MAY 14TH, 2024 AT 3:00 PM ALRIGHT.