Oct 08, 2019 City Council Meeting 7pm

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WELCOME TO THE EVENING SESSION

[ CALL TO ORDER: Mayor Bill Wells]

THE MEETING IS NOW CALLED THE ORDER AND I'LL ASK THE CITY COURT TO CALL THE ROLE.

ALL COUNCIL MEMBERS ARE PRESENT.

WOULD YOU ALL MIND STANDING WITH ME FOR THE PLEDGE OF ALLEGIANCE FOLLOWED BY A BRIEF MOMENT OF SILENCE.

ALL RIGHT, JEN, THE CHANGE OF STAFF.

DO YOU HAVE ANY AGENDA CHANGES, MR MAYOR? WE HAVE NO CHANGES TO THE AGENDA.

COUNCIL, ANY AGENDA CHANGES.

MMM.

[ 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 THE MATTER WITHIN THE JURISDICTION OF THE CITY COUNCIL.

, EXCUSE ME, HOUSING AUTHORITY SUCCESSOR AGENCY TO THE ALCOHOL REDEVELOPMENT IN Z.

THAT IS NOT ON THE AGENDA.

COMMENTS RELATED TO ITEMS ON TODAY'S AGENDA ALREADY BE TAKEN AT THE TIME THAT THE ADAM HAS 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 AND AN ITEM MAY BE PLACED ON A FUTURE AGENDA.

ANGELA, DO WE HAVE ANY CARDS THAT ARE PUBLIC COMMENT? WE HAVE ONE CARD FROM FREDERICK HAMPTON.

PARDON? TEMKIN WELL, SIR, WELCOME.

YES, BILL.

UH, FRED TAMKIN 2164 VALLEY HILL ROAD.

I HAVEN'T RETIRED AS DIRECTOR OF OPERATIONS FOR UTILITIES, NATURAL GAS.

WE HAD OPERATIONS IN ILLINOIS AND OHIO.

I CERTAINLY UNDERSTAND THAT UTILITY COSTS INCREASE ALSO.

HOWEVER, I ALSO UNDERSTAND THAT SENIORS SUCH AS MY WIFE AND MYSELF ARE, I WOULDN'T CALL IT LIVING ON A FIXED INCOME IF EVERYTHING GOES WELL WITH SOCIAL SECURITY.

MAYBE THE COLD IS 3% INTEREST RATES ON BANK ACCOUNTS ARE ARE OUR GARBAGE ARE USELESS.

I DID ANALYSIS BASED ON THE NEW RATE, THE PROPOSED RATES BASED ON MY ACTUAL USAGE FOR THE FIRST YEAR, I GOT AN OUTRAGEOUS INCREASE OF 46.3% 1317 1414 OVER THE FOUR YEARS IN 150% INCREASE, 25.7 COMPOUND AVERAGE OVER THE FOR OVER THE FOUR YEARS.

I UNDERSTAND THAT SOMEBODY DID A CRAPPY JOB OF FIGURING OUT WHAT THE RATES WERE GOING TO BE AND UNDER.

I GET THAT, SO NOW THE CO NOW THE RATE, THE APPROACH IS YOU'RE GOING TO WHACK US TO MAKE UP FOR THE MISTAKES.

I UNDERSTAND YOU NEED THE INCREASES.

I THINK THE INCREASES OUGHT TO BE, DIS OUGHT TO BE STRETCHED OUT OVER A LONGER PERIOD OF TIME TO HAVE A LESSER IMPACT ON THE CITIZENS.

I UNDERSTAND THAT A MISTAKE WAS MADE, IT'S GOTTA BE YOU DON'T WANT TO KEEP, YOU KNOW, WASTING MONEY SPENT AND YOU'RE GOING INTO THE HOLE.

BUT THAT DOES MEAN IT'S REASONABLE TO WHACK US ONE SHOT.

THANK YOU SIR.

AND THAT'S WHAT WE'RE GOING TO BE DISCUSSING TONIGHT, SO YOU'LL, WE'LL HAVE PLENTY OF TIME TO TALK ABOUT THAT.

ANY OTHER CARDS? OKAY.

[100. Wastewater Fund Sewer Service Rate Increase RECOMMENDATION: That the City Council: Opens the Public Hearing and receives testimony; Closes the Public Hearing; Certifies that the written protests received do not make a majority of property owners in accordance with Proposition 218; and Adopts the next Resolution, in order, to approve the new sewer rates to commence on November 22, 2019, with four (4) future modifications effective the first day of Fiscal Years 2021, 2022, 2023, and 2024.]

THAT BRINGS US TO PUBLIC HEARINGS.

ITEM 100 IS IN REGARD TO THE WASTEWATER FUND, SEWER AND SERVICE RATE INCREASE AND STAFF.

WOULD YOU TELL US ABOUT THIS PLEASE? GOOD AFTERNOON.

HONORABLE MAYOR COUNCIL MEMBERS.

I'M YASMINE NADA YANNO DEPUTY DIRECTOR OF PUBLIC WORKS.

I'M HERE TODAY TO RECOMMEND ADOPTION OF A WASTEWATER RATE ADJUSTMENT TO COVER THE CURRENT COSTS OF PROVIDING SEWER SERVICE TO OUR RESIDENTS.

DURING THIS PRESENTATION, I WILL SHARE HOW I RATE INCREASE NOW WILL HELP US MITIGATE SOME ISSUES WITH OUR ABILITY TO MAINTAIN CRITICAL INFRASTRUCTURE AND DELIVER THE SEWER SERVICE TO OUR RESIDENTS.

ON AUGUST 13 OF THIS YEAR, COUNCIL PROVIDED DIRECTION TO SET A PUBLIC HEARING ON OCTOBER 8TH 7:00 PM TODAY AND TO MAIL PUBLIC NOTICES TO OUR RESIDENCE IN ACCORDANCE WITH PROPOSITION TWO 18 OUR PROPOSED SCHEDULE SHOWS NOVEMBER 22ND AS THE DATE NEW RATES WOULD GO INTO EFFECT.

AS YOU MAY ALREADY KNOW, ALWAYS WATER FROM CDO OF CAHONE IS TRANSPORTED AND TREAT IT BY THE CITY OF SAN DIEGO METRO SYSTEM ALONG WITH 11 OTHER PARTICIPATING AGENCIES IN THE REGION.

THE FINAL DESTINATION OF ALL WASTE WATER FROM THE CITY OF OKLAHOMA IS THAT POINT LOMA WASTEWATER TREATMENT PLANT.

THIS PLATE IN THIS LIGHT THE COST TO TREAT AND TRANSPORT OUR WASTEWATER TO POINT LOMA HAS INCREASED OVER 45% SINCE 2018 AND HAS

[00:05:01]

METRO COST ALREADY ACCOUNT FOR 55% OF OUR MONTHLY BILL.

ADDITIONALLY, OUR PIPELINES AND INFRASTRUCTURE CONTINUE TO AGE REQUIRING MORE MAINTENANCE, OLD BROKEN AND DETERIORATED.

PIPES ARE BEING REPLACED OR REPAIRED WITH NEW PLASTIC PIPES OR BEING PIPELINED IN AN EFFORT TO REDUCE MAINTENANCE COSTS.

OVER 60% OF OUR EXISTING SYSTEM IS OVER 60 YEARS OLD.

THE CITY HAS ONLY APPROVED ONE MULTI YEAR RATE INCREASE IN THE LAST 20 YEARS AS A PRICE OF TREATMENT AND TRANSPORTATION FROM METRO GOES UP.

OUR SEWER RATES HAVE NOT KEPT PACE IF WE DON'T TAKE ACTION NOW, THE FUND BALANCE BALANCE IS IN DANGER OF GOING NEGATIVE NEXT YEAR.

IN THIS SLIDE WE SHOW THE INDUSTRY RECOMMENDED RESERVE TARGET AND THE GREAT LINE WE'RE GOING BELOW THAT LINE CURRENTLY AS WE SHOW WITH THE FUND BALANCE WITHOUT HAVING A RATE CHANGE AND WILL CONTINUE TO DROP IF WE DON'T DO ANYTHING ABOUT RACING COSTS THAT ARE PASSED ONTO US FROM METRO, THESE COSTS THAT ARE PASSED ON TO US ARE OUT OF OUR CONTROL.

THE STUDY REVEALED TO ADDRESS THIS, WE HIRED TO DO A RATE STUDY.

THE STUDY REVEALED THAT A 30% INCREASE WAS NECESSARY TO MAINTAIN INDUSTRY STANDARD RESERVES AND FUND THE FULL COST OF OUR CAPITAL IMPROVEMENT PROGRAM.

IN ORDER TO MAINTAIN OUR SYSTEM, WE NEED TO INVEST APPROXIMATELY $10 MILLION INTO OUR INFRASTRUCTURE PER YEAR.

STAFF RECOGNIZE THAT A 30% INCREASE WAS TOO HIGH AND ASK NB FIVE TO RERUN THE SCENARIO WITH MINIMUM RESERVES.

THE RECOMMENDATION CAME BACK AT A 20% INCREASE TO WHICH WE GOT EVEN MORE CREATIVE AND DECIDED TO REDUCE OUR CAPITAL IMPROVEMENT PROGRAM COSTS BY HALF IN THE SHORT TERM, IN ORDER TO PRESENT THE INCREASES THAT WE HAVE BEFORE YOU TODAY, THE PROPOSED INCREASES, IT'S FOR FISCAL YEAR 2020 IS A 14% RATE INCREASE FOR 2021 11% FOR FISCAL YEAR 2022 14% FOR FISCAL YEAR 2023 11% AND FOR FISCAL YEAR 2024 11% WHAT ARE WE HAPPY FOR YOU TODAY? INCLUSIVE, DECREASED WASTEWATER CAPITAL IMPROVEMENT IMPROVEMENT PROGRAM WHILE MAINTAINING MINIMUM RESERVES.

THE PROPOSED RATES WILL ALLOW US TO AVOID A NEGATIVE FUND BALANCE AND GRADUALLY INCREASING THE FUND BALANCE TO ACCEPTABLE INDUSTRY LEVELS AS THIS PLAY IN THIS CHART BY THE ORANGE LINE.

THEREFORE CLOSING THE GAP.

SO HOW DO OUR RATES COMPARE WITH OTHER RATES IN THE COUNTY? CURRENTLY WE'RE THE FOURTH LOWEST IN OUR PROJECT.

THAT WAY, SWEATER INCREASE WILL PUT US RIGHT IN THE MIDDLE OF THE PACK WITHOUT OUR ADJUSTING OUR RATES.

THE WASTEWATER ENTERPRISE FUND IS IN DANGER OF GOING INTO A DEFICIT.

THE SPIDER EFFORTS TO MANIFE MY EXPENDITURES.

THEREFORE A SLOWER RATE ADJUSTMENT IS NECESSARY TO BE CONSIDERED AT THIS TIME.

THANK YOU VERY MUCH.

THANK YOU VERY MUCH.

.

YES SIR.

WE DO.

WE HAVE FIVE SPEAKERS.

OH, I'M SORRY.

BEFORE YOU DO THAT, I FORGOT TO ASK.

ARE THERE ANY QUESTIONS THAT YOU HAVE OF OUR, YEAH, I DID NOT.

SORRY, I FORGOT TO FIRST START WITH STEVE.

LET HIM ASK SOME QUESTIONS.

AND WHAT DOES IT MEAN WHEN THE FUND BALANCE GOES INTO NEGATIVE? IT MEANS THAT WE ARE SPENDING MORE THAN WHAT WE'RE RECEIVING.

SO TO GIVE YOU AN EXAMPLE, UM, THE BLUE LINE SHOWS THE FUND BALANCE GOING, UM, IN FISCAL YEAR 2019 WITHOUT A RIGHT CHANGE.

AND TO GIVE YOU AN EXAMPLE, THIS YEAR OUR EXPENDITURES ARE IN THE REALM OF $30 MILLION AND OUR REVENUES ARE AN A BY ABOUT 20 MILLION.

SO WE'RE ABOUT, WE'RE EATING ABOUT 10 MILLION INTO OUR RESERVES THIS YEAR.

AND THE EXPENDITURES BACK TO THE PIE CHART, HALF OF THAT IS BEYOND OUR CONTROL.

THAT'S THE PASS THROUGH FROM SAN DIEGO METRO WASTEWATER POINT LOMA TREATMENT.

THAT'S HALF OF THAT.

THAT IS CORRECT.

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OKAY.

WHAT ARE THE RESERVES FOR ? THE RESERVES ARE TO HANDLE EMERGENCIES OR CATASTROPHIC, UM, EVENTS.

AND WHAT KIND OF EVENTS COULD THOSE BE? UM, EARTHQUAKES, UH, PERHAPS HAVING A MASSIVE, UH, UM, EVENTS IN WHICH, UM, A POP COLLAPSES.

UM, AND THE CONSULTANT RECOMMENDED A 30% INCREASE.

BUT YOU'RE PROPOSING LESS THAN THAT? CORRECT.

OKAY.

20% OVERALL, 14% 14 PENCE OVER FIVE YEARS.

14%.

1114, 11, 11.

BUT LET'S TALK, TAKE A LOOK AT THAT IN DOLLARS.

SO LET'S GO BACK TO THAT CHART WITH DOLLARS.

CURRENTLY, I THINK THIS, AND THIS IS A TYPICAL HOME, RIGHT? THAT IS EXACTLY, THIS IS A TYPICAL FARM HOME.

UM, SINGLE FAMILY RESIDENTIAL UTILIZING A 9.5 HUNDRED CUBIC FEET.

OKAY.

SO I THINK THIS YEAR IT'S AROUND $48, UH, FOR FISCAL 19.

BUT THE MONTHLY CHARGE.

AND SO YOU'RE PROPOSING GOING TO $7 MORE A MONTH? CORRECT.

AND THEN $6 MORE A MONTH, AND THEN $8 MORE A MONTH, AND THEN SEVEN AND THEN $11.

SO WE'RE LOOKING AT SOMEWHERE BETWEEN SEVEN TO $11 MORE PER MONTH FOR A TYPICAL FAMILY.

THAT IS CORRECT.

OKAY.

THANK YOU.

YUP.

UH, DIDN'T WE HAVE A, A SEWER LINE COLLAPSE IN THE SEWAGE CAME UP INTO THE COUPLE OF HOUSES OVER THE LAST FEW YEARS? UM, YES WE DID.

YEAH.

DIRK EPPERSON, DIRECTOR OF PUBLIC WORKS.

UH, WE DID HAVE THAT OCCUR IN DURING THE LAST RAINY SEASON THAT WE HAD OVER ON PIERCE STREET AND UM, WE WANT TO DEFINITELY AVOID THESE THINGS.

AND UH, SO PART OF THE RESERVES ARE TO HELP TO TAKE CARE OF THOSE THINGS, BUT ALSO THE RESERVES ARE IN PLACE SO THAT WE CAN ALSO MEET OUR MINIMUM OBLIGATIONS FOR CERTAIN LOANS THAT WE HAVE.

WE HAVE AN SRF LOAN THAT WAS UTILIZED TO CONSTRUCT JOHNSON AVENUE.

AND SO PART OF THOSE RESERVES YOU HAVE TO HAVE IN THE BANK IN ORDER TO MEET THE LOAN REQUIREMENTS.

SO WHAT WE'RE DOING IS WE MINIMIZED OUR RESERVES ACCORDING TO WHAT THEY'RE REQUIRING US.

UH, RESERVES ARE DEFINITELY A GOOD THING TO HAVE IN CASE OF EMERGENCY, BUT WE CERTAINLY DON'T WANT TO BUILD OUR RESERVES ON THE BACKS OF OUR RESIDENTS AND WE WANT TO MAKE SURE THAT WE SPREAD THIS OUT OVER TIME.

THAT'S WHY WE'RE SHOWING THIS GRADUALLY GOING BACK UP TO THE RESERVES OVER TIME, OVER AN EXTENDED PERIOD OF TIME.

ANY OTHER QUESTIONS? ESPECIALLY THE LAST REPORT FOR SURE.

THANK YOU.

ALL RIGHT.

I'M GOING TO OPEN TO THE PUBLIC, THE PUBLIC HEARING AND ASK CAROL IF WE HAVE STRICT CHARGE.

YES SIR.

WE DO.

WE HAVE FIVE SPEAKERS.

THE FIRST ONE IS DOLORES LENDERS.

MISS LANDERS, WELCOME MERYL WELLS, UH, COUNCIL MEMBERS AND STAFF.

UM, SOMEHOW I GOT A LITTLE CONFUSED.

I DIDN'T UNDERSTAND HOW WE COULD GET A NOTICE ON AUGUST 20TH AND THEN I'M THE NEWSPAPER.

IT SAYS, I'LL CALL ON RESIDENTS TO SEE A SEWER RATE INCREASE.

AND THAT WAS PASSED A WEEK BEFORE.

WHAT IT STATES IS THE CITY COUNCIL LAST WEEK APPROVED THE RATE HIKE, BUT WE'LL HOLD A PUBLIC MEETING.

SO I WAS TRYING TO FIGURE OUT WHY THIS MEETING IS TODAY.

AND I DISCOVERED THAT MOST FEDERAL AGENCIES OR CITIES HAVE A PHYSICAL YEAR, WHICH MEANS THAT IT RUNS FROM OCTOBER 1ST AND IT ENDS ON SEPTEMBER 30TH.

SO WHEN EVERYBODY GOT THIS, NOTICE, WHEN THE WEIGHT, THE RATE HIKE WAS APPROVED, IT WAS APPROVED IN THE PHYSICAL YEAR 2019.

AND IF YOU VOTE ON IT TODAY, IT WILL BE THE PHYSICAL YEAR 2020 SINCE YOUR PHYSICAL YEAR STARTED OCTOBER 1ST.

UM, ALL WHAT YOU FAILED TO MENTION,

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SO IF YOU HAVE A HUSBAND, A WIFE, FIVE KIDS, AND THEY'RE ALL TAKEN SHOWERS, YOU WILL NOT SEE A $30 BILL.

YOU WILL NOT SEE A $40 BILL BECAUSE IT'S BASED ON YOUR WATER USAGE.

THE ALL ALSO, UH, THIS IS PROPOSITION TWO 18, UH, 13 D WELL, LET'S GO BACK TO B. MMM.

EACH YEAR THE GOVERNMENT BODY OF EACH LOCAL JURISDICTION SHALL BY RESOLUTION ESTABLISH APPROPRIATE LIMITS.

AND IF NECESSARY DETERMINATIONS TO HAVE TO SCHEDULE UNNOTICED SPECIAL MEETING 15 DAYS PRIOR TO THE MEETING, THE PUBLIC SHOULD GET THE INFORMATION ON THIS, I BELIEVE YOUR SEWER RATE, I MEAN ALL YOU ALL BE, ALL YOU HAVE TO DO IS GOUT.

GO DOWN WASHINGTON OR GO ON GROSSMONT AIF WHEN I WHERE I GO TO CHURCH AND YOU WILL FIND SO MUCH CONSTRUCTION, WHAT ARE YOU DOING WITH ALL THE TAXES YOU'RE GOING TO GET? YOU DON'T, YOU'RE NOT COUNTING THAT.

THAT'S GOING TO BE IT.

LUCKILY I HAD THAT SURGERY.

SO IF THIS IS GOING TO BE ON THE BACKS OF THE RESIDENTS, YOU'RE GOING TO HAVE A LOT OF ELDERLY PEOPLE WHO ARE GOING TO PAY AND AROUND FIXED INCOMES.

THANKFULLY REPERTOIRE RESPONDS TO THAT.

I CAN COMMENT ON A FEW THINGS.

SO FIRST OF ALL, THE NEWSPAPER ARTICLE, WE DON'T CONTROL THE UNION TRIBUNE, BUT THE UNION TRIBUNE DID SAY THAT THE COUNCIL APPROVED THIS TO GO TOWARD A HEARING AND THAT'S, THAT'S WHAT THE ARTICLE IS ABOUT AND THAT'S WHAT WE'RE DOING TODAY.

SO THAT'S WHAT THE VOTE WAS.

UM, IT WASN'T A VOTE TO RAISE RATES.

IT WAS, IT SAYS HERE, THE CITY COUNCIL LAST WEEK APPROVED THE RATE HIKE, BUT WE'LL HOLD A PUBLIC MEETING ON THE PROPOSED INCREASE WITH THE CITY MANAGER TO SAY THAT'S A MISTAKE THAT WE DIDN'T APPROVE THE RATE HIKE.

WE'RE DOING THAT TONIGHT.

IF I PLEASE PUT IN A RETRACTION WE'RE APPROVING OR DENYING TONIGHT.

OKAY.

SO THE SECOND THING IS THAT OUR, OUR FISCAL YEAR AS MOST CITIES IN THE STATE OF CALIFORNIA AND THE STATE OF CALIFORNIA, OUR FISCAL YEAR BEGINS JULY 1ST UM, THROUGH JULY 30TH OR JUNE 30TH.

UM, MR. FOLEY HAD ANOTHER ONE.

YEAH.

MS LANDERS REFERENCED ARTICLE THIRD ARTICLE 13 B THE CONSTITUTION AND THAT IS THE APPROPRIATIONS AND SPENDING LIMITATIONS THAT CAME WITH A DIFFERENT PROPOSITION AFTER PROPOSITION 13 BACK IN 1978 AND THAT'S WHAT REALLY THAT SECTION DEALS WITH.

WE DEAL WITH ARTICLE 13 D WHICH WITH 13 SEE THE ONE RIGHT BEFORE IT CAME UNDER PROPOSITION TWO 18 AND SO, AND, AND PROPOSITION 26 ADDRESS THAT AS WELL I THINK IS IS WHAT IT IS.

SO 13 D PROVIDES A PROCEDURE FOR US TO INCREASE THESE TYPES OF CHARGES.

UM, 13 SEE DEALS WITH TAXES AND ASSESSMENTS, 13 D DEALS WITH SEWER CHARGES, WATER CHARGES, SOLID WASTE CHARGES, THINGS OF THAT NATURE.

SO THAT'S WHY WE'RE PROCEEDING UNDER 13 D NOT 13.

THANK YOU COUNSEL.

ALRIGHT, I'LL GO AHEAD.

THE NEXT SPEAKER IS HILTON VALE.

WELL, SIR, WELCOME.

THANK YOU FOR ALLOWING ME TO SPEAK.

UM, AS I LISTENED TO YASMIN EXPLAINED THAT, UM, IT'S HARD TO UH, SAY THAT IS CORRECT.

I WAS VERY SHOCKED WHEN WE GOT THIS INFORMATION THAT OUR CURRENT, UM, WHAT WE CALL BASE RATE WAS GOING TO GO FROM $11 FROM 30 CENTS TO $24 AND 86 CENTS NEXT YEAR AND PROGRESS.

AND THAT'S A 220% INCREASE, KIND OF SHOCKING.

AND THEN OF COURSE BY 2023 THAT HAS RISEN 342%.

SO ALL OF THOSE THINGS, I HAVE NO WAY OF COMPARING WHAT THAT MEANS TO METRO AND SUCH AS THAT.

I JUST SAY THAT WAS ALL VERY SHOCKING FROM THE OCTOBER BILL STARTING 2019 FOR 2023 BY THE TIME THAT BILL HAS IS 2023 THAT'S A 69.74% INCREASE.

AND THAT'S ACTUALLY VERY HEAVY FOR PEOPLE

[00:20:01]

I'M ONE OF THOSE.

THEY MORE SHOCKING ITEM WAS SALARIES AND BENEFITS GO FROM 4 MILLION AND SOME DOLLARS TO 6 MILLION AND THAT'S A 34% INCREASE.

SO I WOULD LOVE A 34% INCREASE FROM, FROM MY RETIREMENT, I GET ANYTHING FROM ZERO TO MAYBE 2.4% SO THAT'S A PRETTY HEAVY HIT FOR US TO HAVE TO PICK UP THAT BILL OF 34% INCREASE FOR SALARIES AND BENEFITS.

SO I JUST SAY TO YOU, I, I KNOW NOTHING EVER GOES DOWN.

I UNDERSTAND BUSINESS AND ONE OF THE THINGS THAT GOT MY ATTENTION AND ENVY, FIVE AS I STUDIED THAT, THEY HAD A 10% A 12% OR SO ON.

BUT AS THEY PROGRESSED THE PERCENT FACTORS WENT DOWN TO NINE AND EIGHT AND I DON'T THINK THERE'S ANY OF US HERE THAT BELIEVE ANYTHING EVER GOES DOWN.

SO I QUESTIONED THAT AND THEN I JUST SAY HOW CAN THEY SEE THAT FAR IN THE FUTURE THAT THIS IS REALLY GOING TO GO DOWN 9% YOU KNOW, 1% TO NINE AND THEN THE EIGHT AND SO ON.

SO I JUST, I QUESTIONED ALL THOSE THINGS AND I JUST ASKED YOU TO TAKE THAT AND SERIOUS CONSIDERATION ON OUR PART.

WE HAVE, WE ARE, WE DON'T HAVE OPTIONS.

WE ARE ALCOHOL, SEWER SYSTEMS, SO WE DON'T GET TO CHOOSE ANOTHER SUPPLIER.

SO I JUST ASK YOU AND PLEASE CONSIDER THAT AS YOU'VE DECIDED TO MAKE THIS TO CDC.

THANK YOU VERY MUCH.

BEFORE YOU LEAVE, LET ME ASK ABOUT THE INCREASE OF SALARIES IN MEMPHIS.

IS THAT PER CALPERS THAT WE'RE TALKING ABOUT ARE CORRECT? CORRECT.

THAT AS YOUR CHIEF LABOR NEGOTIATOR, I'D BE DOING YOU FAILING THE CITY COUNCIL IF WE WERE GIVING 34% RAISES TO STAFF IN THIS MARKET.

BUT THE MAJORITY OF THAT, UM, OUR CONTRACT IS PRETTY NOMINAL IN TERMS OF SALARY INCREASES, BUT THE MAJORITY OF THAT, THAT SALARY OR UH, EMPLOYMENT COSTS IS OUR COWS.

CALPERS BILL, UM, MR DEMAYA AND I ARE ACTUALLY BEEN TALKING WITH CONSULTANTS ABOUT HOW TO FIGURE OUT A WAY TO LOWER THAT WHICH SHOULD HAVE A POSITIVE EFFECT ON THE RATES.

NOW, IF I MAY SAY ONE MORE ITEM, UM, MY BILL FOR THIS YEAR, BUT FROM NOW TO 2000 OCTOBER, THE TOTAL SUM IS $518 34 CENTS BY COMPARISON IN 23 IT'S $927 AND THAT'S A $408 AND 96 CENT CHANGE.

SO I DON'T KNOW HOW MANY HOMES WE HAVE IN , BUT IF WE HAD 30,000 HOMES, THAT'S A 12 MILLION, $240,000 INCREASE.

IF THERE'S 10,000 HOMES, WE'RE LOOKING AT 4 MILLION.

SO I JUST ASK YOU PLEASE TAKE A THOROUGH CONSIDERATION OF THIS.

ON OUR BEHALF.

THANK YOU VERY MUCH, SIR.

TIM SWING.

WELL, SIR, WELCOME.

MY NAME'S TIM SWING.

I'VE BEEN HERE FOR 42 YEARS AND YOU KNOW WHAT I SEE? I SEE A CITY COUNCIL THAT WANTS TO ELIMINATE ALL THE SENIORS, ALL THE DISABLED VETERANS, ALL THE DISABLED PEOPLE FROM ELCA HOME SO THEY CAN HAVE THEIR FLIPPER FRIENDS BUY UP THEIR HOUSES, DOLL THEM UP FOR WHAT THEY CALL IMPROVEMENTS, WHICH ARE ACTUALLY DEVALUED PROPERTIES BECAUSE THEY REALLY ARE STUFF THEY'RE PUTTING IN TODAY IS GARBAGE.

I WILL TELL YOU IT'S GARBAGE.

I LIVE IN A HOUSE IN ELKA HOME.

THERE IS A PICTURE IN THE BASEMENT OF CITY HALL OF MY HOUSE IN 1959 TAKEN BY THE CITY.

EVERY TIME I WANTED TO DO AN IMPROVEMENT, I HAD TO TAKE YOUR BUILDING DEPARTMENT DOWN TO THE BASEMENT, SHOW MY HOUSE.

THAT'S THE WAY THE HOUSE CAME.

OH GEE.

I DIDN'T REALIZE THAT, BUT GETTING BACK TO THE PROBLEM, YOU WANT TO RAISE THE SEWER RATES? YEAH, I KNOW.

SAN DIEGO IS CHARGING YOU MORE MONEY.

WHY DON'T YOU TRY THE NOON BEES THAT COME TO TOWN THAT BUY A HOUSE HERE FOR AN OUTRAGEOUS FEE.

INSTEAD OF CHARGING THE SENIORS AND THE DISABLED, THEY'RE ON A FIXED INCOME.

WE CAN'T SAY, OH, RAISE MY PENSION, CHECK, RAISE MY SOCIAL SECURITY CHECK BECAUSE THE CITY WANTS MORE MONEY.

IT DOESN'T HAPPEN.

I'LL GET PEOPLE WANTING TO DO, IF RAISE RATES,

[00:25:01]

THERE'S ONLY ONE MEMBER LEFT ON THIS COUNCIL THAT I RECOGNIZE WHEN BACK WHEN I FACED YOU PEOPLE IN THE 1990S AND YOU HAD TO GO TO THE WINTER WATER RATE BECAUSE THEY SHOOT, GOT A PHONE CALL FROM HELIX THAT INFORMED YOU WHAT I WAS DOING TO YOUR SITTING.

SO TO SAVE YOUR BUTTS PEOPLE WENT THROUGH THE WINTER RATE, BUT YOU DIDN'T REFUND ANY OF THE MONEY.

YOU RIPPED OFF THE PEOPLE FOR IT.

WE'RE NOT ON THE WINTER RACE.

YOU'RE A SHAM DAN.

.

WELL, HM IS, UH, MOST OF MY THINGS HAVE ALREADY BEEN COVERED BY THIS GENTLEMAN AND A COUPLE OF OTHER GENTLEMEN.

UM, IT'S JUST A QUESTION FOR YOU, MAYOR AND THE COUNCILMEN IS, YOU KNOW, THESE RATES FROM METRO AND STUFF.

IN YOUR OPINION, WHY ARE THEY SO HIGH? IS IT BECAUSE OF THINGS LIKE THE BLOATED PENSIONS AND PREVAILING WAGES? YOU KNOW, SO I KNOW MR MAYOR WELLS AGREES WITH THAT.

I'VE SEEN HIM IN THE PAST.

UM, AND ONE OTHER ITEM IS, AND THIS IS NO DISRESPECT FOR YOU MAYOR, JUST THIS IS JUST AN EXAMPLE, IS DO YOU FEEL THAT YOU USE YOUR BATHROOM HALF AS MUCH AS SAY MR MCCLELLAN? THAT I DON'T KNOW.

OKAY.

WELL I CAUGHT THE, CAUGHT THE END OF THE LAST ONE.

I'M SORRY I MISSED THE LAST MEETING, THE LAST MEETING.

YOU KNOW, I NEEDED THE SLEEP PROBABLY SO, BUT UM, I DID HEAR MR EPPERSON ABOUT HIS SHOWERING AND STUFF LIKE THAT.

UM, I DO BELIEVE YOU PROBABLY USE YOUR BATHROOM JUST AS MUCH AS MR MCCLELLAN.

AND IF I, I'M RIGHT, YOU LIVE IN A MULTIUNIT BUILDING, RIGHT? MR. WELLS.

OKAY.

DO YOU REALIZE YOU ONLY PAY HALF THE BASE RATE OF MR MCCLELLAN? YEAH, MAYBE I DON'T HAVE TO WATER A PLANT, SO DO I OWE HIM? NO, NO.

I'M SAYING YOU ARE PAYING, YOUR ASSOCIATION IS PAYING FOR YOU HALF OF WHISKEY.

MR MCCLELLAN'S IS SO THAT WOULD MEAN THAT YOU ARE USING YOUR BATHROOM HALF AS MUCH AS MR MCCLELLAN.

DO YOU THINK THAT IF THAT IS TRUE, DO YOU THINK THAT IS RIGHT? NO, I DON'T LIKE TEARS SYSTEMS. I THINK THAT THE, WE'RE SEEING THAT WITH THE ELECTRICITY RIGHT NOW AND I THINK NO, I'M NOT TALKING TIER SYSTEMS. I'M TALKING BASE RATE.

OKAY.

WE HAVE A BASE RATE UP HERE.

OKAY.

OKAY.

IT'S $30 RIGHT THERE.

DO YOU THINK MR MCCLELLAN SHOULD PAY 30 AND YOU SHOULD PAY 15 I SUPPOSE IF I'M USING HALF OF WHAT HE'S USING.

SURE.

NO, I MEAN FOR THE BASE RATE, IF YOU'RE USING THE SAME THAT YOU'RE, THE ONLY THING I CAN THINK OF IS YOU'RE TALKING ABOUT TIERED SYSTEM.

NO, NO, SO I'M NOT FOLLOWING UP.

OKAY.

LET ME, LET ME START OVER AGAIN.

OKAY.

THE BASE RATE RIGHT THERE FOR TWO 20 EXAMPLE, $30 OKAY.

OKAY.

YOU, YOU AND MR MCCLELLAN USED THE SAME AMOUNT OF WATER.

OKAY.

OKAY.

SHOULD YOU PAY HALF OF WHAT MR MCCLELLAN PAYS? NO, I WOULDN'T THINK SO.

NO, BUT YOU ARE I, I'M A FOLLOWING, BUT, OKAY.

FOR A MULTIUNIT BUILDING, AND THIS IS COMING FROM YOUR STAFF THAT FOR EVERY CONDO UNIT YOU PAY THE, FOR EVERY UNIT YOU PAY HALF THE BASE RATE.

MR MAYOR, I HAVE A COMMENT ON PAGE 10 OF THE STAFF REPORT.

UH, SINGLE FAMILY MULTIFAMILY CONDOS PAY THE SAME BASE RATE.

$12 AND 43 CENTS.

ALL RIGHT.

I'VE GOT A THING HERE FROM STAFF THAT I GOT THAT HE HIGHLIGHTED WHERE THEY PAY ONLY HALF PER UNIT BY STAFF.

IN ANY CASE, WE DON'T SET THE WATER RIGHTS.

I'M NOT SAYING YOU, YOU'RE LOST.

YEAH, I'M NOT SURE.

I'M SURE.

I'M NOT SURE WHERE YOU, CAN YOU TELL ME WHAT YOU'RE, WHAT YOU'RE TRYING TO GET AT.

OKAY.

VERY CLEAR.

IS MR MCCLELLAN PAYS $30 FOR WATER FOR THE BASE RATE.

OKAY.

FOR WATER.

[00:30:01]

BASE RATE FOR SEWER.

WE'RE, WE'RE SEWER HERE.

WE'RE NOT TALKING WATER.

OKAY.

YOU PAY WITH STAFF SAYS YOU PAY FOR USING THE SAME SEWER SYSTEM.

NOT, WE'RE NOT TALKING WATER.

JUST THE BASE RATE.

YOU PAY $15 WOULD THAT, WOULD THAT BE FAIR? I DON'T KNOW IF GOT, I'VE GOTTA BE HONEST.

I DON'T KNOW ENOUGH ABOUT IT TO KNOW WHY THAT WAS PRICED THAT WAY OR IF HE, EVEN IF IT WAS, BUT ANYWAY, I'VE GOT IT RIGHT HERE.

WRITING FROM STAFFED DIRT.

IF IT'S SHORT.

YOU SAY A LIGHT ON THIS OR BECAUSE IT'S A MYSTERY TO ME.

WELL ACTUALLY I THINK, UM, OKAY.

LET ME THINK.

HE'S LOOKING AT THE AVERAGE, BUT STAFF IS LOOKING AT THOSE NUMBERS RIGHT NOW.

SO ARE YOU ABLE TO BRING UP PAGE 10 AT THE STAFF REPORT? I DON'T THINK ANY OF YOU ARE STILL FOLLOWING WHAT I'M SAYING.

OKAY.

THERE'S A DIFFERENCE IN RATES BASE RATES.

OKAY.

BECAUSE YOU'RE SAYING, ANSWER YOUR QUESTION REAL QUICK.

THERE'S A DIFFERENCE IN BASE RATES BETWEEN THE DIFFERENT UNITS TYPES.

SO YOU HAVE SINGLE FAMILY RESIDENTIAL FAMILY.

YES.

SO YOU'RE SAYING MS TURKEYS JUST LET HIM FINISH? I CAN'T ANSWER THAT.

I NEED TO KNOW THIS TOO.

LET ME SEE IF I CAN HELP YOU OUT A LITTLE BIT.

MAYOR.

UM, I BELIEVE WHAT HE'S SAYING IS THAT WE HAVE DIFFERENT BASE RATES FOR DIFFERENT UNITS.

SO IF WE HAVE A SINGLE FAMILY RESIDENCE, WE HAVE A BASE RATE THAT'S PROPORTIONATE TO THAT SERVICE THAT WE PROVIDE TO THAT UNIT.

AND THEN WE HAVE MULTIFAMILY UNITS AS WELL.

AND THEY, THEY DO THE FIRST UNIT ON THE PROPERTY.

THE BASE RATE IS THE SAME, AND THEN IT'S, IT'S HALF FOR ADDITIONAL UNITS AFTER THAT.

SO WHAT WE'RE SAYING IS THAT THE, TO PROVIDE A SEWER LINE TO THAT PROPERTY, WHICH CONDO UNITS ARE MULTIFAMILY UNITS AS ONE PROPERTY WITH MULTIPLE UNITS ON IT.

THERE'S SOME ECONOMIES OF SCALE THERE.

IT COSTS US FOR YOU TO PROVIDE THE SERVICE.

YES.

AND SO THE BASE RATE IS TO COVER THE BASIC COSTS OF DOING BUSINESS WITHOUT TREATING THE VOLUME METRIC, QUANTITY OF SEWAGE THAT COMES OUT OF THERE.

IT'S THE COST OF DOING BUSINESS AND IT'S PROPORTIONATE TO THE TYPE OF UNIT IT IS.

MAKES SENSE.

THANK YOU.

YOU'RE WELCOME.

OKAY, THAT MAKES SENSE.

YOU SIR? NO, IT DOESN'T.

OKAY.

SO YOU'RE SAYING SINCE YOU LIVE IN A CONDO THAT YOUR WASTEWATER COSTS LESS THAN MR MCCLELLAN TO GO TO THE BASE RATE JUST BASE RATE.

WE'RE NOT TALKING VOLUME, WE'RE TALKING THE BASE RATE.

WELL WE'RE GOING TO HAVE TO GET BACK TO ACTUALLY THE, THE MEDIA AT HAND.

BUT WHAT I THINK HE'S SAYING IS IT COSTS LESS TO PROVIDE THAT SERVICE TO MULTIPLE USERS ON ONE, ONE PIECE OF PROPERTY THAT IT COSTS TO SEND A ONE TO ONE IS SO GOOD GOES THROUGH DIFFERENT PIPES.

NO, IT GOES INTO THE DOMAIN SEWER LINE THAT GOES TO SAN DIEGO.

IF YOU WERE OPENING UP A RESTAURANT AND YOU, YOU HAD A RESTAURANT THAT SERVED ONE PERSON VERSUS A RESTAURANT THAT SERVED 3000 PEOPLE, THERE WOULD BE A DIFFERENCE IN COST PER MEAL.

YEAH, THEY, AND THAT'S WHAT WE'RE TALKING ABOUT.

SO MR MCCLELLAN WOULD GO IN THERE AND PAY DOUBLE WHAT YOU WOULD PAY IF, IF MR CLAUDE WANTED TO GO TO A RESTAURANT WHERE HE WAS THE ONLY CUSTOMER, HE'D PROBABLY PAY A LOT MORE.

OKAY.

UM, THIS IS FOR MR MCCLELLAN.

NOW MY TIME'S UP BECAUSE HIS, DO YOU UNDERSTAND WHAT I'M SAYING? YEAH.

AND I PAY A LOT MORE THAN, UH, THAN MR. YEAH.

MR. WELLS, I PAID $200 EVERY TWO MONTHS.

YEAH.

AND HE PAYS HALF OF WHAT YOU PAY.

IT JUST COMES DOWN TO MONEY RIGHT THERE.

YOU PAY HALF OF WHAT MR MCCLELLAN.

UM, THEN I ASKED STAFF AND THEY LOOKED LIKE I WAS CRAZY AND STUFF.

HOW MANY DWELLING UNITS THERE ARE IN EL CAHONE? WELL, YOU KNOW, I WOULD LOVE TO RUN A, UH, UH, A WHOLE THING ON THIS TONIGHT, BUT WE ACTUALLY HAVE TO GET TO THE, JUST THE, JUST LET THE PEOPLE KNOW OF ALCOHOL AND THAT YOU'RE PAYING HALF OF WHAT MR MCCLELLAN IS.

OKAY.

THAT'S ALL SIGNS SAYING NO DISRESPECT FOR YOU.

BUT IF EVERYBODY IN OWN, IF EVERY DWELLING UNIT PAID THEIR FAIR SHARE, THEN THE CITY WOULD HAVE MORE MONEY THAN THE RATES WOULDN'T HAVE TO BE GO UP.

SO THAT'S MY POINT.

YEAH.

IF EVERYBODY PAID THEIR FAIR SHARE, THAT'S ALL I WANT.

THANK YOU.

THANKS SIR.

ALL RIGHT, OUR LAST SPEAKER IS DONALD JONES.

I'M MR. JONES.

WELCOME.

THANK YOU.

IT SEEMS INTERESTING THAT EVERYBODY HAS DIFFERENT NUMBERS THAT THEY'RE LOOKING AT.

THE NUMBERS THAT I'M LOOKING AT ARE FROM THE NOTICE OFFICIAL NOTICE THAT CAME TO ME.

UH, AND, UH, BY MY CALCULATIONS, UH, WE'RE LOOKING AT THE, THE BASE RATE, UH,

[00:35:01]

AND WHEN MY CALCULATIONS RUN, THAT'S AN, UH, AN 89% INCREASE OVER FIVE YEARS.

SO IT'S AVERAGING 18% A YEAR.

THE COMMODITY, UH, THE, UH, UH, COMMODITY CHARGE IS ALSO GOING UP 45%.

SO, UH, LIKE MANY PEOPLE IN THE ROOM, I'M LIVING ON A FIXED INCOME AND, AND LOOKING AT A 2% COST OF LIVING RAISE.

I'M ALSO LOOKING AT OVER THE LAST FIVE YEARS, THE CONSUMER PRICE INDEX HAS GONE UP ABOUT ONE OR 1.6% PER YEAR.

SO I'M SITTING HERE GOING, IF, IF THE CPI IS GOING UP 1.6% PER YEAR, HOW ARE WE GETTING TO 90%, 89% OVER A FIVE YEAR PERIOD.

UH, AND, UH, THAT'S A LOT, A LOT TO HANDLE.

UM, AND I REALIZED THAT, THAT, THAT, UH, THAT THERE ARE PASSERS ON THIS OR THAT SOME OF THIS MONEY IS GOING TO THE CITY OF SAN DIEGO FOR THE METRO SYSTEM.

UH, THERE IS A LITTLE LINE HERE, UH, TOWARDS THE END HERE.

IT SAYS, UM, UH, SEWER RATES ARE SHOWN AND PROPOSED WITH THIS NOTICE ARE BASED ON PART ON PROJECTIONS PROVIDED BY THE CITY METRO SYSTEM.

UH, THE ACTUAL FUTURE PO PASS THROUGH INFORMATION IS NOT AVAILABLE AT THIS TIME.

THE INFORMATION IS NOT AVAILABLE.

WHAT ARE WE DOING CHARGING FOR WHAT WE DON'T KNOW WHAT'S GONNA HAPPEN.

UH, AND THAT'S WHAT HAPPENS WHEN YOU, THE PURPOSE OF THE TWO 18 HEARING WAS FOR TRANSPARENCY AND ACCOUNTABILITY TO TAXPAYERS FOR ANY INCREASE IN FEES AND TAXES.

AND WHEN YOU'RE PROJECTING OUT ONE YEAR OR TWO YEARS, I CAN UNDERSTAND THAT WHEN YOU'RE PROJECTING OUT FIVE YEARS AND YOU DON'T HAVE DATA ACCORDING TO YOUR OWN RECORD, BUT THERE'S A CATCH TO THIS.

IT SAYS, OH, AT THE HEARING, UH, SHALL CONSIDER ESTABLISHING A PASS THROUGH ORDINANCE, WHICH WILL PASS ALONG THE HIGHER COSTS, UH, AT THAT POINT IN TIME.

SO BASICALLY YOU'RE SAYING 89%, ACCORDING TO WHAT YOUR STATS IS NOW.

BUT IF IT'S MORE THAN THAT, YOU'VE ALREADY GOT A BUILT IN PASTOR.

SO YOU'RE BASICALLY ASKING FOR A BLANK CHECK TO PASS THROUGH A FUTURE COSTS.

UH, I'VE BEEN A RESIDENT HERE IN LAWN FOR 40 YEARS.

UH, AND I'VE BEEN IN THE PUBLIC UTILITIES SECTOR FOR 50 YEARS.

I'VE NEVER SEEN A RATE INCREASE LIKE THIS FIRST.

YOU WANNA EXPLAIN IT A LITTLE BIT.

LET ME, LET ME TAKE, UH, ONE THING THAT WASN'T ADDRESSING THE PRESENTATION THAT YOU LOOKED AT EARLIER THIS SUMMER IS THAT A LOT OF THE COSTS THAT METRO IS CHARGING HAS TO DO WITH THEIR PURE WATER PROGRAM.

SO AS YOU RECALL, UH, WE CURRENTLY SEND OUR REFUSE OUR, OUR, UM, SEWAGE TO POINT LOMA FOR TREATMENT AND THEN SHIPPED OUT TO THE OCEAN BECAUSE WE'RE RUNNING OUT OF CAPACITY AT THAT.

SEE, THE CITY OF SAN DIEGO IS BEING REQUIRED TO CHANGE HOW THEY, UM, PROCESS OR SEWAGE.

AND SO THAT, THAT'S CALLED PURE WATER PROGRAM.

THAT'S DRIVING A LOT OF OUR EXPENSES.

AND SO, UM, THOSE PROJECTIONS ARE JUST THAT THEY'RE PROJECTIONS, BUT THEY HAVE RFPS OUT ON THE STREET RIGHT NOW.

THEY'RE GETTING BIDS.

WE'RE PRETTY SURE THAT THEY'RE GOING TO BE WITHIN A CERTAIN PERCENTAGE OF THOSE PROJECTIONS.

THE OTHER THING, IT'S IMPORTANT TO NOTE THAT THE TWO 18 NOTICE ESTABLISHES THE MAXIMUM OF WHAT THE CITY COUNCIL CAN CHARGE AS A RATE.

AND SO LET'S SAY THE CITY OF SAN DIEGO FIGURES OUT, LET'S SAY TECHNOLOGY COMES ABOUT, WE CAN FIGURE OUT A WAY TO DISPOSE OF OUR SEWAGE AND A MUCH MORE ECONOMICAL WAY AND METRO COST NEVER COME UP AS MUCH.

THE CITY COUNCIL DOES NOT HAVE TO SET THE RATES AT THE RATES THAT YOU SEE HERE.

YOU CAN ACTUALLY LOWER THOSE RATES TO WHAT YOUR REAL COSTS ARE.

SO YOU SHOULD JUST BE AWARE OF THAT.

UM, AS YOU'RE LOOKING AT THESE RATES TONIGHT.

WELL, THE THING YOU MIGHT POINT OUT IS THAT ONE OF THE REASONS THAT THE METRO'S CHARGING PASSING ON HIGHER FEES IS BECAUSE THEY ARE HAVING LOWER FLOWS.

UH, POINT LOMA WAS BUILT TO HANDLE 238 MILLION GALLONS A DAY AND IT'S RENTED ABOUT 180 MILLION GALLONS DAY NOW DUE TO CONSERVATION.

SO, UH, THEIR SYSTEM ISN'T TAXED AS NEARLY MUCH AS PEOPLE THINK.

SO, UH, SOMEBODY, THERE'S A BOONDOGGLE COMING ON SOMEWHERE.

THANK YOU, SIR.

DID YOU WANT GARY? GOTCHA.

I HAD A QUESTION.

UM, FOR STAFF, UH, HOW LONG DID WE GO WITHOUT RAISING RATES? HOW MANY YEARS DID WE NOT RAISE RATES? KIKO? I THINK WE HAVE A GRAPH THAT SHOWS THAT THERE WAS ALMOST 20 YEARS.

ONE, NO, I AT 10, 10 OR 12.

I THINK IN THE, IN THE LAST 20 YEARS WE'VE HAD ONE RATE INCREASE.

MULTIYEAR RATE INCREASE.

YEAH.

IT MIGHT BE BEST IN THE FUTURE THAT WE DO LITTLE ONES.

AND I KNOW DURING THE GREAT RECESSION WE HELD BACK BECAUSE PEOPLE DIDN'T HAVE MONEY.

SO WE'RE MAKING UP FOR LOST TIME.

IF YOU LOOK AT THE

[00:40:01]

AND THEN ALSO AS FAR AS THE PURE WATER GOES, UH, UH, METRO IS GOING TO BE SPINNING ABOUT A BILLION AND A HALF DOLLARS.

THAT'S BILLION WITH A B, UH, BECAUSE OF STATE AND FEDERAL REQUIREMENTS TO TAKE THAT SEWAGE AND TURN IT INTO DRINKING WATER.

AND IT'S VERY, VERY EXPENSIVE.

SO IT'S ALL KIND OF GOES INTO THIS, UH, MECHANICS OF, UH, PROCESSING THE SEWAGE.

SO THAT'S, THAT'S A LOT OF MONEY AND THAT'S SOMETHING THAT, THAT'S THRUST UPON ALL THE DIFFERENT CITIES BY THE STATE AND FEDS, SIR, IF YOU'D LIKE TO COME UP, IT'S FINE.

OH, OKAY.

IF THEY, IF THEY DO CONVERT SEWAGE TO DRINKING WATER, WON'T THEY BE SELLING THAT BACK TO THE PUBLIC? IS THERE SOME RECOVERY ON THAT? I WOULD THINK SO.

AND, AND, AND, AND I WOULD ASSUME THEY WOULD PICK UP THEIR COST OF CONVERSION.

RIGHT.

FIRST DAY.

WE DON'T KNOW WHAT THAT IS.

YEAH.

THIS IS A STEALING.

WE'RE LOOKING AT TECHNOLOGY JUST RIGHT ON THE CUTTING EDGE OF IT RIGHT NOW.

YEAH.

YEAH.

AND SOMEBODY ASKED EARLIER, UM, I KNOW THAT IN 2000, UH, YOU BASED YOUR SEWERAGE SEWAGE ON A 50% OF THE WATER YOU CONSUMED DURING THAT PERIOD, THEY WERE MONITORING AND I BELIEVE IT'S IN 2009 OR 10 THAT THEY CONVERTED THAT TO 88% FOR THOSE WHO DIDN'T KNOW THAT 88% SOMEBODY I COULDN'T REMEMBER IN THAT TIME FRAME.

UH, THERE WAS A LOT OF CONFUSION IN THE BILLING.

THERE WERE MONTHS WE DIDN'T GET BILLS AND NOTICES, WE APOLOGIZED AND SUCH LIKE THAT.

AND ACTUALLY WE WERE SENDING, I BELIEVE PAYMENTS IN TOWARD LA, BUT EVENTUALLY IT CAME OUT AND SETTLED OUT AND QUIETED DOWN.

BUT IT WAS A 38% INCREASED IN FROM 50% TO 88%.

SO, AND BY THE WAY, THANK YOU VERY MUCH FOR YOUR TIME.

APPRECIATE IT.

THANK YOU SIR.

SO WE DID RECEIVE ONE MORE CARD.

SURE.

ELAINE BRIGGS, TWO MEETINGS IN ONE DAY.

I KNOW TWO MEETINGS IN ONE DAY.

WE GOT TO STOP MEETING LIKE THIS.

YOU'RE LAYING BRICKS.

I JUST HAVE A COUPLE OF QUESTIONS ON THIS.

UH, I UNDERSTAND THIS IS STILL GOING TO BE BASED ON THE FIXED WINTER RATE, WHICH IS NOVEMBER, DECEMBER, JANUARY, FEBRUARY USAGE, TYPICALLY FROM PADRE DAM.

I'M NOT SURE ABOUT HELIX.

THAT'S MY FIRST COMMENT.

A QUESTION ON IT.

SECONDLY, I KNOW WHAT THIS PROPOSAL SAID, BUT WHEN I LOOKED AT THE PACKAGE TODAY ON EXHIBIT A, IT SHOWED THAT A, THE BASE CHARGE FOR A SINGLE FAMILY HOME WOULD BE $12 AND 42 CENTS.

SO THAT'S QUITE DIFFERENT THAN 24 86 WHICH WAS PUBLISHED ON THIS.

CAN ANYBODY TELL ME THE ANSWER TO THAT? OKAY.

MONTHLY VERSUS BIMONTHLY.

OKAY.

THANK YOU.

UM, PERFECT.

AND I GUESS THOSE ARE MY QUESTIONS.

SO WE'RE STILL GOING TO GO WIN A RATE AND I BELIEVE WE HAVE 10,000 HOMES THAT ARE ON WINTER RATE AND THERE'S ONLY 17,000 HOUSEHOLDS THAT ARE ON THIS WHOLE WATER THING.

I THINK THAT'S WHAT I READ.

SO I'M JUST ASKING FOR CLARIFICATION.

MAYOR.

IT IS CONFIRMED.

YES.

WE HAVE 17,000, APPROXIMATELY 17,000 CO SEWER CUSTOMERS.

THAT INCLUDES ALL TYPES WHO ARE FAMILY OR A SINGLE FAMILY, MULTIFAMILY AND UH, INDUSTRIAL, COMMERCIAL, ALL, ALL TYPES.

SO WE HAVE APPROXIMATELY 17,000 CUSTOMERS AND AS THE RESIDENTS SAID, WE DO HAVE UM, UH, A SIGNIFICANT NUMBER OF THOSE OR PERCENTAGE, UH, THAT ARE ON THE FIXED WINTER AVERAGE AND WE ARE GOING TO CONTINUE TO UTILIZE THAT UNTIL WE FIND THAT IT DOES NOT WORK OR THAT THERE'S A BETTER WAY TO DO IT, A, A MORE EFFICIENT COST EFFECTIVE WAY OF DOING IT.

AND WE ARE ANALYZING THE DATA CONTINUALLY TO FIND WHAT IS BEST FOR THE RESIDENTS OF OKLAHOMA.

UM, ONE THING THAT I, I DID WANT TO MENTION IS THAT THE FIX WINTER AVERAGE DOES TAKE THE LOWEST TWO MONTHS AND OUR AVERAGE OUT OF THE WINTER, UM, BILLING CYCLES.

SO IT'S GOING TO LOOK AT YOUR WINTER BILLING CYCLES AND USE THAT BECAUSE THAT'S SUPPOSEDLY WHEN YOU'RE NOT PUTTING WATER OUT ONTO YOUR IRRIGATION AS MUCH.

AND SO IT'S, IT WORKS OUT AND THAT'S WHAT'S AVERAGED AND UTILIZE FOR THE WHOLE YEAR.

SO JUST TO PUT SOME CLARIFICATION TO THAT.

THANK YOU.

APPRECIATE THAT.

ALL RIGHT, ANGELA, ANYMORE? NO MORE CARDS HERE.

MAKE A MOTION TO CLOSE PUBLIC HEARING.

SECOND,

[00:45:01]

OH, THANK YOU FOR REMINDING ME OF THAT.

ARE THERE ANY MORE WRITTEN PROTESTS THAT HE'D BE DELIVERED? OKAY.

WE LOOKS LIKE THERE ARE NONE.

SO THEN MAKE A MOTION TO CLOSE PUBLIC HEARING AGAIN.

PLEASE VOTE.

MOTION CARRIES BY UNANIMOUS VOTE.

ANGELA, WHAT'S THE TOTAL OF THE PROTEST LETTERS THAT HAD BEEN SUBMITTED? WE RECEIVED 24 LETTERS.

ANY FURTHER DISCUSSION ON THIS SITE? I JUST WANT TO SAY THAT I, UM, WE NEED TO TAKE SOME MORE RESPONSIBILITY FOR THE SHOCK OF THIS BECAUSE WE LET 20 YEARS GO BY AND WE DIDN'T RAISE RATES.

I THINK THAT PAST COUNCILS PROBABLY DID THAT IN A GOOD INTENTION NOT WANTING TO CHARGE THEIR, THEIR CITIZENS MORE THAN THEY, THAN THEY HAD TO.

I REMEMBER THERE WAS A TIME WHEN ALL THE CITIES WERE FLUSHED WITH CASH AND IT DIDN'T SEEM LIKE THEY'D EVER BE A PROBLEM AGAIN.

BUT THEN THINGS CHANGED.

UH, THE COST OF DOING BUSINESS CHASE SPECIFICALLY IN REGARD TO PENSIONS AND WE HAD TO GET BACK UP TO SPEED SO THAT WE ARE AT LEAST IN THE PACK WITH WHAT'S HAPPENING IN THE REST OF SAN DIEGO.

SO I DO ACKNOWLEDGE THE FACT THAT THIS IS HARD TO ACCEPT IT AND I KNOW IT'S, I, I WANT TO ACKNOWLEDGE THE FACT THAT MANY PEOPLE SAID THEY WERE ON FIXED INCOME AND I'M NOT DISMISSING THAT AT ALL.

I AM NOT TOO FAR AWAY FROM RETIRING MYSELF AND I TRIED TO FIGURE OUT HOW THAT'S ALL GOING TO WORK.

AND LIVING IN CALIFORNIA, IT'S NOT EASY AND WE DON'T DO THIS FLIPPANTLY.

WE DON'T DO THIS WITHOUT REGARD TO WHAT YOU'RE SAYING IS JUST LIKE ALL CITIES.

WE'RE GOING TO HAVE TO DO IT.

WE HAVE TO DO TO SURVIVE.

SO HAVING SAID THAT, I TURN IT OVER TO STEVE.

YOU KNOW, WE SAW MONTHLY INCREASES A 14%, 11%, 11%, AND THOSE KINDS OF RANGES OF SIX OR SEVEN TO $11 A YEAR OVER THE, UM, FIVE YEARS OR SO, PROPOSED OR FORECASTED.

THE DIFFICULTY IS HALF OF THOSE, I CAN'T EVEN DO ANYTHING ABOUT HALF OF THAT INCREASE.

HALF OF THAT 11% INCREASE, I HAVE NO SAY OVER, THAT IS A PASS THROUGH FROM THE CITY OF SAN DIEGO AT 55% OF OUR COSTS ARE FROM THE CITY OF SAN DIEGO.

SO HALF OF THE MONTHLY INCREASE I CAN DO NOTHING ABOUT IT'S PASS-THROUGH.

SO THAT'S 5% OF THE 11% 7% ROUGHLY THE OTHER QUARTER, 25 CENTS OF THAT INCREASE.

I GOT TO DO SOMETHING ABOUT A CLAY PIPE SITTING UNDERNEATH THE STREETS.

AND THAT'S, I DON'T KNOW HOW I'M RESPONSIBLE TO THE PEOPLE OF EL CAHONE IF I DON'T TAKE A QUARTER OF THE INCREASE AND RESTORE PIPES THAT ARE 60% OR 1965 AND OLDER.

SO I THINK I HAVE AN OBLIGATION TO THE PEOPLE OF EL CAHONE TOO.

HMM.

TO, TO, TO NOT LET THOSE BAD THINGS HAPPEN.

SO I'M HANDCUFFED IN A WAY.

AND THE THIRD THING WAS THE LOANS THAT WE HAVE FROM THE STATE REQUIRE US TO KEEP SO MUCH MONEY IN RESERVE AGAINST CATASTROPHES.

AGAIN, I DON'T HAVE ANY CONTROL OVER THE LOAN COVENANTS THAT THEY REQUIRE ON US IF WE WANT TO BORROW MONEY.

SO I'M HANDCUFFED ON A LOT OF THESE INCREASES BECAUSE THEY'RE NOT THINGS THAT WE HAVE A LOT OF CHOICE IN.

AND SO I ACKNOWLEDGE THE FRUSTRATION OF THESE INCREASES, BUT I CAN'T DO ANYTHING ABOUT THE LOAN COVENANTS.

I CAN'T DO ANYTHING ABOUT HALF OF THE RATE INCREASE, WHICH I THINK IS LOW.

I THINK THE PURE WATER THINGS KIND OF REALLY BITE EVERYBODY IN THE, IN THE WALLET.

SO I MAYBE AT THE DISCRETIONARY AND I HAVE 25% OF THE INCREASE THAT WE'RE LOOKING HERE THAT I HAVE A YAY OR NAY ON.

THAT'S KIND OF WHERE I FEEL THAT WE'RE AT.

THANKS TO YOU.

THAT WAS REALLY INSIGHTFUL.

I APPRECIATE THAT.

SO IS THERE ANY DISCUSSION, BOB? ONE MORE THING.

UH, THE BONDS THAT WE BORROWED FOR THE JOHNSON AVENUE, UM, MODIFICATION AND REPIPING, I THINK IT WAS OVER $10 MILLION.

AND, UM, THE, UM, REASON FOR THAT REPLACEMENT OF THAT PIPE WAS BECAUSE A FEW COUPLE OF YEARS

[00:50:01]

IS THAT RIGHT DIRK, IF YOU CAN ELABORATE ON THAT? YEAH.

WE HAD SEVERAL SIPHONS THAT WERE DECADES OLD THAT WENT UNDERNEATH CERTAIN CHANNELS TO GET FROM THE SOUTH SIDE OF THE CITY TO THE NORTH SIDE AND THOSE SIPHONS WERE FAILING.

AND SO THIS PROJECT REALLY, UH, ELIMINATED SOME OF THE SIPHONS AND COMBINED IT INTO ONE TRUNK LINE THAT WENT UNDERNEATH THE FREEWAY FROM THE SOUTH SIDE OF THE NORTH SIDE.

RIGHT.

VERY, VERY ESSENTIAL.

WE HAD A LOT OF LEAKAGE, RIGHT? YEAH.

SEWER SPILLS.

YEAH.

I THINK WHAT SOME OF THE PEOPLE ARE ASKING IS, UH, IS IF IT'S TRUE THAT THERE ARE DIFFERENT BASE RATES FOR DIFFERENT TYPES OF DWELLINGS, WHAT PEOPLE ARE ASKING IS CAN THOSE BE MASSAGED AT ALL? YEAH.

EVERYONE PAYS THEIR FAIR SHARE AND THAT'S WHAT WE'RE ASKING.

I, I, I HAVE A QUESTION FOR THE MAYOR.

YOU CAN DIRECT IT TO STAFF IF YOU WANT.

OH, OKAY.

AND OUR FORMALITY, I, IT WAS A GOOD QUESTION.

IT IS.

AND, AND IT'S REALLY COMES DOWN TO WHAT THAT COST OF SERVICE IS FOR THAT CUSTOMER.

AND SO THERE ARE DIFFERENT SIZE PIPES THAT FEED TO THAT CUSTOMER.

THERE'S DIFFERENT MAINTENANCE THAT HAPPENS AND THE AMOUNT OF MAINTENANCE WHICH HA, WHICH OCCURS BASED UPON THE DIFFERENT DWELLING UNIT TYPE OR THE DIFFERENT CUSTOMER TYPE IS, IS INDEED DIFFERENT.

AND SO WE HAVE TO GO BASED UPON AN AVERAGE AND SPREAD THAT OUT.

AND SO THIS IS SOMETHING WE LOOK AT INDUSTRY STANDARDS, SO IT'S UTILIZED THROUGHOUT OTHER, THIS ISN'T UNIQUE TO EL CAHONE.

THIS IS SOMETHING THAT IS, IS THROUGHOUT.

AND WHAT WE'RE TRYING TO DO IS BALANCE OUT THAT WHOLE EFFECT OF RIGHT NOW OUR BASE RATES ARE ACTUALLY MUCH, MUCH, MUCH LOWER PROPORTIONATELY SPEAKING TO THE WHOLE BILL AMOUNT, A MUCH LOWER THAN OTHER AGENCIES OUT THERE.