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[ CALL TO ORDER: Mayor Bill Wells]
TO THE LOCAL AND CITY COUNCIL MEETING.I'D LIKE TO CALL THE MEETING TO ORDER AND ASK OUR CITY CLERK TO CALL THE ROLL.
ALL COUNCIL MEMBERS ARE PRESENT.
WOULD YOU ALL STAND FOR THE PLEDGE OF ALLEGIANCE AND AFTER THE PLEDGE OF ALLEGIANCE TO REMAIN STANDING FOR A BRIEF MOMENT OF SILENCE? I PLEDGE
[ POSTINGS: The City Clerk posted Orders of Adjournment of the February 25, 2020, Meetings and the Agenda of the March 10, 2020, Meeting in accordance to State Law and Council/Authority/Successor Agency to the Redevelopment Agency Policy.]
THE CITY CLERK POSTED ORDERS OF A GERMAN OF THE FEBRUARY 25TH, 2020 MEETING AND THE AGENDA OF THE MARCH 10TH, 2020 MEETING IN ACCORDANCE WITH STATE LAW COUNSELING COUNCIL ON HOUSING AUTHORITY POLICY.THERE ARE NO PRESENTATIONS ON TODAY'S AGENDA.
STAFF, DO YOU HAVE ANY AGENDA CHANGES? MR MAYOR? WE HAVE NO CHANGES TO THE AGENDA.
[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.]
WITHOUT CONSENT ITEMS, CONSENT ITEMS OR ROUTINE MATTERS AND ACTED BY ONE MOTION ACCORDING TO THE RECOMMENDATION LISTED BELOW WITH THE CONCURRENCE OF THE CITY COUNCIL, COUNCIL MEMBER OR PERSON AT ATTENDANCE MAY REQUEST.DISCUSSION OF A CONSENT ITEM AT THIS TIME.
COUNCIL MEMBERS, DO YOU WISH TO PULL ANY CONSENT ITEMS? HOW ABOUT STAFF? I CAN MAKE A MOTION TO APPROVE THE CONSENT ITEMS. WE DO HAVE ONE SPEAKER.
I JUST WANTED TO KNOW IF THIS ITEM HAD ANYTHING TO DO WITH RAISING SALARIES OR ANYTHING LIKE THAT OR WAS IT JUST, WHAT KIND OF CHANGES WERE EXACTLY ON THERE? WOULD YOU LIKE TO TALK ABOUT A COUNCIL POLICY? A 29? CERTAINLY MR MAYOR, MEMBERS OF THE COUNCIL, THE CITY HAS A LIST OF EMPLOYEES THAT ARE NOT REPRESENTED BY LABOR GROUPS AND THAT LIST IS CALLED THE EIGHT 29 LIST.
THIS LIST OR THIS PROPOSAL IS TO MOVE SEVERAL POSITIONS THAT ARE CURRENTLY REPRESENTED BY LABOR GROUPS TO NON-REPRESENTED POSITIONS.
NO CHANGES IN SALARIES ARE PROPOSED FOR THIS.
AND WHY ARE WE MAKING THOSE CHANGES? I MEAN, WHAT'S THE REASON FOR THAT? JUST CURIOUS.
I'M SORRY, I DIDN'T HEAR THAT.
WHAT WAS YOUR REASONING FOR CHANGING, MAKING THE CHANGES
SO EMPLOYEES THAT ARE IN CONFIDENTIAL POSITIONS OR POSITIONS OF MANAGEMENT OR EXECUTIVE DECISION MAKING SHOULDN'T IN STAFF'S OPINION, SHOULDN'T BE REPRESENTED BY LABOR GROUPS.
AND THIS, UM, THERE ARE A HANDFUL OF POSITIONS ABOUT 10 POSITIONS THAT WE FEEL RISE TO THAT, UM, LEVEL THAT SHOULD BE OUT OF THAT REPRESENTATIVE GROUP.
SO THOSE WOULD BE THE PEOPLE THAT ARE, THAT HAVE LIKE DEGREES AND MASTERS AND STUFF LIKE THAT.
I THINK THAT THAT'S WHAT I WAS READING.
NOT, I MEAN A LOT OF THESE FOLKS DO HAVE DEGREES BUT IT HAS TO DO WITH INDIVIDUALS THAT HAVE DECISION MAKING AUTHORITY THAT UM, WHERE THERE'S A LEVEL OF ACCOUNTABILITY THAT NEEDS TO BE RE DEMANDED OF THEM.
ALRIGHT, I'D LIKE TO MAKE A MOTION THEN TO APPROVE THE CONSENT ITEMS. MOVED AND SECONDED.
MOTION CARRIES BY UNANIMOUS VOTE.
[ 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.]
BRINGS US TO PUBLIC COMMENT.AT THIS TIME, ANY PERSON MAY ADDRESS THE MATTER WITHIN THE JURISDICTION OF THE CITY COUNCIL HOUSING AUTHORITY AND SUCCESSOR AGENCY TO THE
COMMENTS RELATING TO ITEMS ON TODAY'S AGENDA ARE TO BE TAKEN AT THE TIME THE ADAM'S 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 ITEM OF COURSE MAY BE PLACED ON A FUTURE AGENDA.
ANGELA, DO YOU HAVE ANY CARDS UNDER PUBLIC COMMENT? WE HAVE THREE SPEAKERS.
THE FIRST TWO I WILL CALL TOGETHER VANESSA, HANNAH AND BRIANNA CML.
UM, WE JUST WANTED TO COME AND INTRODUCE OURSELVES TO YOU GUYS.
I CURRENTLY HAVE AN ASSOCIATES DEGREE IN AMERICAN SIGN LANGUAGE.
MY FAVORITE EVENTS SO FAR THIS YEAR HAS BEEN THE OPEN HOUSE AT THE FIRE STATION.
I GOT TO MEET MANY COMMUNITY MEMBERS AND FIREFIGHTERS THAT HELP OUT OUR COMMUNITY AND THAT WAS AWESOME.
AND THE FIREFIGHTERS DIDN'T LOOK HALF THAT EITHER.
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TO ANNOUNCE THAT THE MISS OKLAHOMA PAGEANT IS GOING TO BE HELD AT THE MAGNOLIA HERE IN DOWNTOWN OKLAHOMA THIS YEAR.IT'S SO AMAZING THAT IT'S GOING TO BE HELD THERE BECAUSE THE FIRST TIME I DID COMPETE IN THE MISS
SO VERY, VERY EXCITED ABOUT THAT.
SO THANK YOU FOR LETTING US COME SPEAK IN MY PAGEANTS.
SISTER VANESSA WOULD LIKE TO SAY SOMETHING.
I JUST WOULD LIKE TO SAY THANK YOU.
I'M THE CURRENT 2019 MISS HUMMEL AND I JUST WANT TO THANK YOU GUYS FOR YOUR SUPPORT AND LETTING US BE INVOLVED IN THE COMMUNITY COMMUNITY AS MUCH AS WE ARE.
YOU DO A LOT OF, HOW MANY EVENTS DO YOU THINK YOU'D GO TO A YEAR? WELL, TOO MANY TO COUNT, ESPECIALLY OCTOBER AND LIKE WE JUST LIKE THROUGH DECEMBER, WE HAVE LIKE FIVE EVENTS A WEEK PROBABLY.
BUT IT'S YOU KNOW, SOMETIMES THERE ARE PROBABLY WHERE YOU'D LIKE TO JUST SIT AROUND IN YOUR PAJAMAS WATCHING TV AND STUFF.
YEAH, I LOVE GETTING DRESSED UP LIKE THIS EVERY SINGLE DAY AND SEE IF THERE'S ANY QUESTIONS WITH THE COUNCIL.
ALL RIGHT LADIES, THANK YOU FOR COMING AND THANK YOU FOR ALL YOUR HARD WORK.
THE LAST SPEAKER FOR A PUBLIC COMMENT IS STEPHANIE
FIRST OFF, I WANT TO APOLOGIZE BECAUSE I, WHAT AM I HAVE TO SAY MIGHT TAKE A LITTLE LONGER THAN THREE MINUTES, BUT IT'S VERY IMPORTANT TO HEAR FOR EVERYONE TO HEAR.
THIS IS MY RUN FOR CITY COUNCIL IN 2016 I HAVE BECOME VERY FAMILIAR WITH A LOT OF OUR HOMELESS CITIZENS AND ALL I'VE HEARD LATELY IS COMPLAINTS ABOUT BEING HARASSED AND THEIR PROPERTY BEING COMPENSATED.
BASICALLY THEIR BELONGINGS BEING THROWN OUT.
MUNICIPAL CODE TITLED TWO CHAPTER 2.6 AND CLINTON PROPERTY IN THIS LAW EXPLAINS HOW THE CITY HANDLES UNCLAIMED PROPERTY, EITHER TURNED IN BY A CITIZEN OR PUBLIC EMPLOYEE, WHICH I'M ASSUMING THAT WOULD BE POLICE, BUT WHEN I ASKED OFFICERS, ANDREW VAN WORKMAN AND OFFICER WHITE WINNING ABOUT THE PROCEDURE OF THIS LAW, NEITHER KNEW WHAT I WAS TALKING ABOUT.
I REFER TO AN INCIDENT THAT HAPPENED AT WELLS PARK ABOUT NOON ON MARCH 4TH WHERE QUITE A FEW OF OUR HOMELESS CITIZENS HAD THEIR PROPERTY TAKEN.
WHEN I SPOKE WITH OFFICER WHINING ABOUT WHERE THEIR PROPERTY WAS, I WAS TOLD THE PROPERTY WAS NOT UNCLAIMED, IT WAS ABANDONED AND THEREFORE IT WAS TAKEN TO WASTE MANAGEMENT.
I ASKED WHY WHEN THE CITIZENS TOLD YOU THOSE WERE THEIR BELONGINGS, DID YOU STILL CONTINUE TO TAKE THEIR PROPERTY? THE OFFICER RESPONDED, YOU COULD TELL IT WASN'T THEIRS.
WELL AT THIS POINT I THOUGHT IT WOULD BE WOULD BE HELPFUL IF I COULD SEE WHAT HAD HAPPENED AND SINCE OUR OFFICERS WEAR BODY CAMS I ASKED ABOUT OBTAINING A COPY BUT WAS TOLD BY AMBER IN THE TRAFFIC DIVISION THAT WAS NOT PRIVY TO THE PUBLIC AND I WOULD HAVE TO HAVE A SUBPOENA IN ORDER TO OBTAIN A COPY.
NOW THIS IS THE SORT OF THING I WOULD FILE A COMPLAINT ABOUT, BUT SINCE THE POLICE ARE THE ONES WHO INVESTIGATE THE COMPLAINTS AGAINST THEM, THAT WOULD JUST BE A WASTE OF MY TIME.
IT IS A POLICE OFFICER'S DUTY TO UPHOLD THE LAW.
OUR POLICE OFFICERS NOT KNOWING THE LAW THEY ARE ENFORCING IS PRETTY NURSEY AT GREAT RISK OF A LARGE LAWSUIT.
THE ELLIS DID THE LAC COUNCIL JUST SETTLED A COURT CASE WITH A BROAD IMPLICATIONS FOR THE PROPERTY RIGHTS OF HOMELESS RESIDENTS.
THE CITY OF SAN DIEGO LOST A CLASS ACTION SUIT TO THE HOMELESS FOR THE SAME THING.
THIS IS A VIOLATION OF THEIR FOURTH AMENDMENT RIGHTS.
OVER HALF A MILLION PEOPLE IN THE UNITED ARE HOMELESS ON ANY GIVEN NIGHT IN THE UNITED STATES AND A THIRD OF THEM ARE IN SHELTERED.
DOES IT REALLY HAVE TO COME DOWN TO LEGAL ACTION AND THE THREAT OF IN OUR CITY, TENS OF THOUSANDS OF DOLLARS FOR THIS TREATMENT TO STOP.
YOU ARE ALLOWING POLICE TO BELIEVE THESE CITIZENS.
YOU ARE SAYING IT'S OKAY TO TAKE FROM SOMEONE WHO BARELY HAS ANYTHING BECAUSE YOU WANT TO LEAVE THEM WITH NOTHING, NO FOOD, NO BLANKETS, NO MEDICATION.
THEIR PROPERTY TAKEN BECAUSE THEY HAD TO USE THE RESTROOM.
YOU FIVE SEEN THERE, YOU'RE ACCOUNTABLE FOR THIS AND NOW THAT THIS HAS BEEN BROUGHT TO YOUR ATTENTION, I WILL EXPECT SOMETHING TO BE DONE ABOUT IT.
I EXPECT YOU TO DO YOUR JOB AND CARE ABOUT EVERY SINGLE CITIZEN AND THE QUALITY OF THEIR LIFE LINE.
IF THIS TREATMENT CONTINUES, I WILL BECOME ACT.
I WILL BECOME ACTIVELY INVOLVED WITH BRINGING ABOUT A LAWSUIT MYSELF.
LAWS THAT CRIMINALIZE VISIBLE HOMELESSNESS ARE IMMORAL AND OFFEND OUR BASIC HUMAN INSTINCTS.
THEY'RE CONTRARY TO THE FUNDAMENTAL RELIGIOUS AND POLITICAL PRINCIPLES FROM WHICH THE AMERICAN PUBLIC SEEK GUIDANCE AND THEIR EXISTENCE DEMONSTRATES THAT WE HAVE FALLEN VASTLY SHORT OF OUR RELIGIOUS AND FOUNDATIONAL ASPIRATIONS.
WHAT IS THE DIFFERENCE BETWEEN UNCLAIMED AND ABANDONED AND WHAT YOU DO YOU GUYS PLAN ON DOING ABOUT THIS? WELL, I APPRECIATE WHAT YOU HAVE TO
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SAY.I THINK YOU SHOULD GO AHEAD AND MAKE A COMPLAINT TO THE POLICE DEPARTMENT.
I THINK IT'S A MISTAKE TO SAY THAT BECAUSE THE POLICE DEPARTMENT INVESTIGATES IT, THAT THEY'RE NOT RELIABLE.
EVERY POLICE DEPARTMENT IN THIS COUNTRY HAS INTERNAL AFFAIRS DEPARTMENT.
THEY ALL, EVERY POLICE DEPARTMENT IN THIS COUNTRY INVESTIGATES COMPLAINTS.
SO UNLESS THERE WAS SOME KIND OF FOUNDATION FOR THE BELIEF THAT THEY, THAT THEY WOULD INVESTIGATE PROPERLY, I, I WOULD GO AHEAD AND GO THROUGH THE PROCESS.
I HAVE A LOT OF DISBELIEFS IN THAT BECAUSE I'VE COMPLAINED TO POLICE DEPARTMENT ABOUT A FEW THINGS THAT WERE VERY URGENT AND POLICE DIDN'T EVEN MAKE A REPORT ABOUT IT.
AND WE NEED A CITIZENS OVERSIGHT COMMITTEE SO WE CAN FOLLOW UP ON THINGS LIKE THIS.
BUT YOU KNOW
BUT I APPRECIATE YOU COMING AND TELLING US YOUR THOUGHTS AND I WAS WONDERING IF THE, YOU KNOW, I SEE ATTORNEY COULD TELL ME WHAT THE DIFFERENCE BETWEEN ABANDONED AND IF YOU LEAVE YOUR NUMBER, I'M SURE THE CITY ATTORNEY WILL BE GLAD TO GIVE YOU A CALL AND WE COULD, WE COULD, THIS COULD EASILY TURN INTO A WORKSHOP AND I DON'T WANT TO DO THAT RIGHT NOW.
JUST YOU MOVE TO DIFFERENT SQUARES.
IF YOU LEAVE YOUR NUMBER, I'M SURE SOMEBODY WILL GIVE YOU A CALL AND FOR THE POLICE DEPARTMENT OR THE ATTORNEY'S OFFICE.
I JUST WANT TO POINT OUT THAT THE CITY OF OKLAHOMA DOES MORE FOR THE HOMELESS AND ALL THE OTHER EAST COUNTY CITIES COMBINED.
IF YOU TAKE A LOOK AT THE AMOUNT OF MONEY WE SPEND ON THE HOMELESS, THERE ARE RIGHT NOW, UH, ANYONE THAT'S HOMELESS CAN GO OVER TO THE EAST COUNTY TRANSITIONAL LIVING CENTER AND THEY ARE VOUCHERS WHERE THEY CAN STAY THERE FOR 30 DAYS.
RIGHT NOW WE HAVE 148 CHILDREN LIVING OVER THERE THAT WERE PREVIOUSLY HOMELESS AND OVER A HUNDRED MEN AND DRUG AND ALCOHOL REHAB PROGRAMS. THERE'S NOTHING ELSE LIKE IT IN THE EAST COUNTY.
YOUR ANY MORE CARDS? NO MORE CARTER.
[7. Public Hearing to Consider Placing Sewer Charges on the San Diego County Tax Roll RECOMMENDATION: That the City Council: Opens the Public Hearing and receives testimony related to this report; Closes the Public Hearing; Adopts the next Resolution, in order, to (1) determine the lack of a majority protest, (2) overrule objections to the report, and (3) authorize the collection of sewer service charges as a fixed special assessment on the county property tax bill beginning Fiscal Year 2021; and Awards a sole source contract to NV5, Inc., for sewer billing support and tax roll charges preparation in the not-to-exceed amount of $194,251 for FY21. That the City Council: Opens the Public Hearing and receives testimony; Closes the Public Hearing; Adopts the next Resolution, in order, to authorize the collection of sewer service charges as a fixed special assessment on the county property tax bill beginning Fiscal Year 2021; and Awards a contract to NV5 for sewer billing support and tax roll charges preparation in the not to exceed amount of $193,000 for FY21. That the City Council: Opens the Public Hearing and receives testimony; Closes the Public Hearing; Adopts the next Resolution, in order, to authorize the collection of sewer service charges as a fixed special assessment on the county property tax bill beginning Fiscal Year 2021; and Awards a contract to NV5 for sewer billing support and tax roll charges preparation in the not to exceed amount of $193,000 for FY21.]
WE ARE NOW AT PUBLIC HEARINGS.ITEM NUMBER SEVEN IS TO CONSIDER PLACING SEWER CHARGES ON THE SAN DIEGO COUNTY TAX ROLLS.
I ASKED THE STAFF TO TELL US ABOUT THIS ITEM.
UM, MAYOR CITY COUNCIL AND STAFF.
I'M YOUR DIRECTOR OF PUBLIC WORKS AND UH, I'M HERE TODAY TO TALK ABOUT PLACING THE SEWER CHARGES ON THE COUNTY TAX ROLL.
IN FACT, IT'S A DIFFERENT WAY OF PAYING THE SAME BILL.
GRAHAM AND I HAVE BEEN THROUGH THIS PROCESS BEFORE WHILE GRAHAM WAS AT THE CITY OF LEMON GROVE.
UM, I WORKED AT THE CITY OF LA MESA AT THE TIME THAT THE SEWER CHARGES TRANSFERRED TO THE COUNTY TAX ROLL.
IN FACT, IF YOU GO LOOK AT THEIR, UH, VIDEO, MY VOICE IS THE VOICEOVER.
UM, SO TO SHOW THAT I'VE BEEN THROUGH THIS BEFORE AND UH, HAD SOME EXPERIENCE.
UM, I'M FAMOUS ON A YOUTUBE VIDEO, AT LEAST OUR OUTREACH AND TRANSPARENCY MADE FOR A SMOOTH TRANSITION.
THIS PRIOR KNOWLEDGE WILL ALLOW OKLAHOMA TO TRANSITION SMOOTHLY, BE FISCALLY CONSERVATIVE, BE MORE EFFICIENT AND AS GOOD FOR CUSTOMERS.
LAST YEAR WE RECEIVED WORD THAT OUR VENDOR FATHOM WAS ABRUPTLY GOING OUT OF BUSINESS.
THREE OPTIONS WERE PRESENTED TO CITY COUNCIL IN JANUARY, 2020.
ALTHOUGH THESE WERE NOT THE ONLY THREE OPTIONS EXPLORED, THEY WERE THE MOST FEASIBLE STAFF ALSO CONSIDERED PLACING THE SEWER BILL ON THE WATER BILL.
AS YOU RECALL, PRIOR TO 2011 CHARGES WERE PLACED AS A LINE ON THEM ON THE HELIX WATER DISTRICT BILL.
HOWEVER, IN 2011 HE LOOKS WATER ADVISED ALL CUSTOMER AGENCIES THAT THEY COULD NO LONGER INCLUDE THE SEWER CHARGE ON THE WATER BILL.
WE EVEN CHECKED BACK IN THIS TIME TO SEE IF THEY'D RECONSIDER AND THEY SAID NO.
WELL, MASON LEMON GROVE AT THAT TIME DECIDED TO PLACE THE SEWER CHARGES ON THE COUNTY TAX ROLL.
EL CAHONE DECIDED TO CONTRACT FOR SEWER BILLING SERVICES.
THIS IS HOW WE GOT TO TODAY AT THE JANUARY MEETING OF THIS YEAR.
THE THREE OPTIONS WERE F WERE FULLY CONTRACTED SERVICES IN HOUSE SERVICES AND THE COUNTY TAX ROLL.
JUST TO GIVE US SOME CONTEXT, THE FULLY CONTRACTED SERVICES INCLUDE SEWER BILL ADMINISTRATION, PRINTING AND MAILING OF BILLS, POSTAGE PAYMENTS, PAYMENT PROCESSING THROUGH MERCHANT ACCOUNTS, CUSTOMER SERVICE, CALL CENTERS, SOFTWARE, LIEN PROCESSING PENALTY PAY OFF DEMANDS.
THE IN HOUSE SERVICES INCLUDE FOUR ADDITIONAL STAFF, SEWER BILL ADMINISTRATION,
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PRINTING, STUFFING AND MAILING OF BILLS, LIENS AND NOTICES, POSTAGE, PAYMENT PROCESSING INCLUDING MERCHANT ACCOUNTS, CUSTOMER SERVICE SOFTWARE, LIEN PROCESSING, PENALTY NOTICING AND PAY OFF DEMANDS.THAT COUNTY TAX ROLL OPTION INCLUDES CALCULATING SEWER CHARGES ANNUALLY, CUSTOMER SERVICE IN HOUSE, HAND BILLING AND DATA PREPARATION FOR THE COUNTY ASSESSOR, THE CITY COUNCIL DIRECTED STAFF TO EXPLORE THE COUNTY TAX ROLL OPTION.
WE ASKED OTHER AGENCIES IN THE COUNTY HOW THEY WERE BILLING FOR SEWER CHARGES AND FOUND THAT
ALL AGENCIES WHO DO NOT INCLUDE THEIR SEWER BILL ON THEIR WATER BILL COLLECT THROUGH THE COUNTY TAX ROLL.
NO WONDER WHY WE ONLY RECEIVED ONE BITTER LAST TIME.
THERE JUST IS NOT A MARKET FOR THIS, ESPECIALLY LOCALLY LAST YEAR, CITY COUNCIL APPROVED SEWER RATE INCREASES.
THESE WERE APPROVED PRIOR TO FATHOM INFORMING US THAT THEY WERE GOING OUT OF BUSINESS AND THE RATE STUDY MADE SOME IMPORTANT ASSUMPTIONS.
THE COST OF SEWER BILLING THROUGH CONTRACTED SERVICES WAS ASSUMED AT THE THEN CURRENT RATE.
CONTRACTED SERVICES ARE HIGHER NOW AND THE PREVIOUS COSTS ARE NO LONGER AN OPTION.
THE APPROVED RATES INCLUDE A COST THAT THE CITY OF SAN DIEGO CHARGES OKLAHOMAN TO TRANSPORT AND TREAT SEWAGE, SO WE'VE ALREADY MADE AN ASSUMPTION IN THE RATE INCREASES THAT WE'RE GOING TO COVER THE CITY OF SAN DIEGO'S TRANSPORTATION AND SEWAGE COSTS.
ANOTHER ASSUMPTION WAS THAT RESERVES IN CIP WERE TAKEN TO ALLOWABLE INDUSTRY STANDARD MINIMUMS TO AVOID PASSING EXCESSIVE INCREASES ONTO THE CUSTOMERS.
WE WERE TRYING TO REDUCE THE INCREASE AS MUCH AS POSSIBLE.
THE REALITY IS THAT OUR AGING INFRASTRUCTURE NEEDS APPROXIMATELY $10 MILLION PER YEAR TO BE PROPERLY MAINTAINED.
BUT IN THE SHORT TERM WE SAID WE CAN SQUEEZE OUT AN ADDITIONAL, A LITTLE BIT OF ADDITIONAL LIFE IN THE SHORT TERM TO BENEFIT IN THE LONG TERM.
SO AS YOU CAN SEE IN THE LAST BULLET THERE, WE REDUCED THAT TO 2.8 LEAVING A OVER $7 MILLION DEFICIT THIS YEAR OF WHAT WE SHOULD BE SPENDING TO MAINTAIN OUR SYSTEM AND AN ADDITIONAL 5 MILLION EACH YEAR FOR YEARS TWO THROUGH FIVE.
WE CAN GET THROUGH THIS, BUT WE TIGHTENED OURS BELT SO THAT WE WOULDN'T HAVE TO BUILD IT ON THE BACKS OF OUR RESIDENTS AND CUSTOMERS.
THIS WAS A GRAPH THAT WE SHOWED AT THAT TIME.
IF WE DID NOTHING, THE RATES WOULD HAVE BEEN THE BLUE LINE.
BUT BECAUSE YOU DID SOMETHING, YOU DID THE RIGHT THING, IT AVOIDED GOING BELOW ZERO.
BUT WE'RE NOT COMPLETELY OUT OF THE WOODS.
THE ORANGE LINE IS REPRESENTATIVE OF THE APPROVED RATES MOVING FORWARD.
THIS SLIDE ZOOMS INTO THAT ORANGE LINE EVEN MORE FORGETTING ABOUT THE PAST AND THAT BLUE LINE THAT DIPS BELOW ZERO.
SO WE REDID THE GRAPH WITH ZERO BEING THE BOTTOM CAUSE WE'RE NOT GOING THERE.
BUT THE ORANGE LINE, AGAIN ON THIS LINE SHOWS WHERE WE'RE GOING IN THE FUTURE WITH THE TAX ROLL OPTION SHOWN IN GREEN, WE REACHED RECOMMENDED RESERVE TARGETS SOONER.
THE CONTRACT OF SERVICES AND IN HOUSE OPTIONS ARE ANOTHER STORY.
THE TAX ROLL OPTION SHOWS US REACHING RECOMMENDED RESERVE TARGETS SOONER.
THIS MAY ALLOW FOR A REDUCTION TO APPROVED RATE INCREASES.
HOWEVER, THE CONTRACTED IN IN HOUSE OPTIONS MAY REQUIRE RATE INCREASES ON TOP OF THOSE ALREADY APPROVED TO COVER THE DIFFERENCE AS EARLY AS UH, AS AS EARLY AS JUNE OF THIS YEAR, THERE ARE MANY BENEFITS TO THE COUNTY TAX ROLL OPTION.
LET'S START WITH THE FIRST ONE.
THE COUNTY TAX ROLL OPTION IS $471,000 LESS EXPENSIVE THAN THE NEXT VIABLE OPTION AND IN TIME CAN PROVE TO BE A GREATER SAVINGS.
YEAR TWO GETS EVEN GREATER OR LESS EXPENSIVE, MEANING THAT GAP GROWS.
AS WE LOOK AT THE THREE OPTIONS PROJECTED OUT IN THE FUTURE, WE CAN SEE THE FINANCIAL IMPACT THAT EACH OPTION HAS AFTER 10 YEARS.
THIS DIFFERENCE IS AT MINIMUM FOUR POINT $2 MILLION AND AFTER 20 YEARS, EIGHT POINT $4 MILLION.
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THIS IS SIGNIFICANT WHEN WE CONSIDER THE AGE OF OUR INFRASTRUCTURE AND THE POTENTIAL FOR SYSTEM FAILURES.BACK TO OUR OTHER SLIDE, THE BENEFITS OF THE COUNTY TAX ROLL, IT'S MORE EFFICIENT, IT'S LESS STAFF TIME AND LESS PERSONNEL COSTS AND CERTAINLY TAKES INTO CONSIDERATION THE UNFUNDED PENSION LIABILITY.
IT ALSO REDUCES PAPER IS A HIGHER PERCENTAGE OF PEOPLE.
THERE'S A HIGHER PERCENTAGE OF PEOPLE THAT PAY THEIR PROPERTY TAX AND THIS PROCESS GREATLY REDUCES LIENS.
LAST YEAR WE LEANED OVER 1,300 PROPERTIES AND ULTIMATELY ENDED UP COLLECTING FROM 525 PROPERTIES THAT WERE ULTIMATELY PUT ON THE PROPERTY TAX ROLL.
THIS OPTION ALSO INCREASES COLLECTABILITY.
THIS EQUATES TO MORE THAN A HUNDRED THOUSAND DOLLARS ANNUALLY OF BAD DEBT THAT HAS WRITTEN OFF CURRENTLY THAT OTHERWISE WILL BE CAPTURED THROUGH THE TAX ROLL OPTION.
SO HOW WILL THIS CHANGE AFFECT CUSTOMERS IF YOU OWN A SINGLE FAMILY HOME CONDOMINIUM, MULTIPLE UNIT APARTMENT COMPLEX OR RESIDENTIAL PROPERTY NONRESIDENTIAL PROPERTY, EXCUSE ME, YOU'RE RESPONSIBLE FOR THE SEWER CHARGES INCURRED AT THAT PROPERTY AFTER JULY.
IF THIS IS VOTED ON AND THEN PASSED, SEWER CHARGES WILL BE BILLED TO THE PROPERTY OWNER AT THE ANNUAL PROPERTY TAX BILL.
IF YOU'RE A, IF YOU OPERATE A BUSINESS OR RENT A SINGLE FAMILY HOME CONDOMINIUM, APARTMENT UNIT OR COMMERCIAL INDUSTRIAL SPACE, BUT DO NOT OWN THE PROPERTY, YOU WILL NOT RECEIVE A SEWER BILL AFTER JULY 1ST SEWER CHARGES WILL BE BILLED TO THE PROPERTY OWNER ON THE ANNUAL PROPERTY TAX BILL.
TENANTS MAY NEED TO CONTACT THEIR LANDLORD TO MAKE SUER PAYMENT ARRANGEMENTS.
LAST TIME I WAS BEFORE YOU, I WAS ASKED TO GO BACK AND DO PUBLIC OUTREACH.
THIS IS A BIG CONCERN FOR CITY COUNCIL.
WE'VE BEEN DILIGENT IN REACHING OUT TO CUSTOMERS AND STAKEHOLDER GROUPS THROUGHOUT THIS PROCESS.
WE'VE REACHED OUT THROUGH MAILERS, WEBSITE, BILL INSERTS, NEWSPAPER, THE OKLAHOMA HOME GATEWAY MAGAZINE, AND MET WITH STAKEHOLDER GROUPS.
WE HAVE HEARD FROM MANY OF OUR CUSTOMERS OVER THE LAST FEW MONTHS AND THEY HAVE RAISED CONCERNS, SOME POSITIVE AND SOME NEGATIVE.
I'D LIKE TO TELL YOU WHAT I'D LIKE TO TELL YOU WHO IN PERSON THAT WE DON'T MAKE MISTAKES BUT OCCASIONALLY SEWER BILLS ARE ADJUSTED TO ACCOUNT FOR A LEAK IN A CUSTOMER'S PIPE OR OTHER ERROR.
WE WILL BE SENDING OUT A SEWER CALCULATION SUMMARY TO OWNERS EACH YEAR PRIOR TO THE CHARGES BEING PUT ON THE PROPERTY TAX BILL.
THIS WILL SHOW HOW THE CHARGE IS CALCULATED.
THE SUMMARY WILL ALSO BE USEFUL TO LANDLORDS AND PASSING ON SEWER UTILITY CHARGES TO TENANTS.
WE WILL SEND THIS OUT PRIOR TO THE DATA BEING SENT TO THE COUNTY FOR INCLUSION IN THE PROPERTY TAX BILL THIS YEAR.
WE PLAN TO SEND OUT AN ADDITIONAL DRAFT SUMMARY IN APRIL TO ALLOW CUSTOMERS TO START MAKING PREPARATIONS EARLY FOR THE CHANGE IN CONSULTING WITH THE CITIES OF
WE FOUND THAT SOME HANDBILLS WILL STILL NEED TO BE ISSUED.
THIS IS FOR PROPERTIES THAT ARE EITHER GOVERNMENT AGENCIES LIKE SCHOOLS, PROPERTY TAX EXEMPT OR PROPERTIES WITHOUT WATER METERS LIKE PARKWAY PLAZA IN THE MALL.
THESE PROPERTIES WILL BE SENT A SEPARATE BILL ANNUALLY, BOTH LA MESA NATIONAL CITY SUCCESSFULLY BILL IN THIS MANNER.
LIKE I SAID, WE RECEIVED MANY STAKEHOLDER COMMENTS.
THESE ARE DETAILED IN THE STAFF REPORT.
I WOULD LIKE TO ADDRESS A FEW OF THEM TODAY AND SPEAKING WITH OTHER AGENCIES WHO ARE ON TAX RULE.
THERE IS NO EVIDENCE TO SUGGEST THAT THE SEWER CHARGES ON THE TAX ROLL HAVE IMPACTED CUSTOMERS.
MORE THAN 70% OF MORTGAGES HAVE IMPOUND OR ESCROW ACCOUNTS.
THESE WILL BE ADJUSTED THROUGH THE TAX BILL PROCESS.
THIS WILL ADJUST MORTGAGE PAYMENTS BUT IT WILL SPREAD THEM OVER 12 MONTHS ALLOWING CUSTOMERS TO PAY 12 TIMES PER YEAR VERSUS SIX.
THERE ARE SEVERAL CUSTOMERS THAT I'VE SPOKEN TO OVER THE LAST SEVERAL WEEKS ABOUT THIS TOPIC.
SOME WHO DID NOT HAVE IMPOUND ACCOUNTS.
THEY SAID THAT THEY WOULD SAVE AND MAKE SURE THEY HAD ENOUGH WHEN TAX CAME DUE.
WE HAVE RUN CASHFLOW STUDIES AND FOUND THAT WE'LL BE ABLE TO HAVE SUFFICIENT FUNDS THROUGHOUT THE YEAR GOING ONTO THE TAX ROLL OPTION.
WE WILL CONTINUE TO BE THE CONTACT FOR SEWER RELATED QUESTIONS.
AS MENTIONED PREVIOUSLY, WE WILL SEND OUT A SUMMARY ANNUALLY
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TO ALL CUSTOMERS AND ALLOW FOR ERRORS TO BE CORRECTED.ALSO, THE CITY OF EL CAHONE SEWER BILLING PHONE NUMBER WILL BE ON THE PROPERTY TAX BILL, SO SOMEBODY HAS A QUESTION.
THEY JUST CALL THE NUMBER THAT'S ON THE PROPERTY TAX BILL RIGHT THERE WHEN IT COMES IN THE MAIL.
IF AN ERROR OCCURS AND SHOWS UP ON THE TAX BILL, OTHER AGENCIES HAVE A PROCEDURE TO CORRECT THIS AND WE WILL AS WELL.
IF THIS OPTION IS SELECTED, STAFF WILL PREPARE AND EXECUTE A PUBLIC OUTREACH PLAN THAT WILL INCLUDE SEWER BILL SUMMARIES, SOCIAL MEDIA, DIRECT MAIL, AND A WEBSITE COUNCIL WILL AUTHORIZE THE CHAIN CHARGES IN JUNE AND THE FINAL BILL SUMMARIES WILL BE SENT OUT.
TIME WILL BE GIVEN TO ALLOW FOR ADJUSTMENTS IF NEEDED AND THE DATA WILL THEN BE SENT TO THE COUNTY ASSESSOR IN JULY.
I UNDERSTAND THAT THERE ARE MANY POINTS OF VIEW ON THIS MANNER, BUT WE HAVE SPENT MANY HOURS STUDYING THE OPTIONS.
WE ARE COMMITTED TO PROVIDING A SERVICE THAT HAS THE CUSTOMER'S BEST INTEREST AT HAND.
ALL OPTIONS ARE FEASIBLE AND WE WILL CARRY OUT WHATEVER OPTION THAT THE CITY COUNCIL DECIDES ON.
WITH THIS SAID THE POSITIVE IMPACTS TO OUR WASTEWATER PROGRAM THAT THE COUNTY TAX ROLL OPTION BRINGS IS THE RECOMMENDATION THAT WE'RE MAKING TODAY.
THIS OPTION DOES PROVIDE BETTER SERVICE TO OUR CUSTOMERS IS $471,000 LESS THAN THE NEXT OPTION.
IT AVOIDS ADDING TO OUR PENSION LIABILITY AND IT ALSO ALLOWS STAFF FOCUS ON MAINTAINING OUR SEWER PIPES INSTEAD OF FOCUSING ON SENDING OUT SIX IDENTICAL BILLS PER YEAR.
FOR THIS AND ALL OF THE REASONS MENTIONED IN MY PRESENTATION, I BRING THIS RECOMMENDATION BEFORE YOU THAT THE CITY COUNCIL OPENS A PUBLIC HEARING AND RECEIVES TESTIMONY CLOSES THE PUBLIC HEARING ADOPTS THE RESOLUTION AUTHORIZING COLLECTION OF SEWER SERVICE CHARGES AS A FIXED SPECIAL ASSESSMENT ON THE COUNTY PROPERTY TAX BILL BEGINNING FISCAL YEAR 2021 AND AWARDS A SOLE SOURCE CONTRACT, NB FIVE INC FOR SEWER BILLING SUPPORT AND TAXABLE CHARGES, PREPARATION AND THE NOT TO EXCEED AMOUNT OF 194,002 51 FOR FISCAL YEAR 21 THANK YOU AND THAT CONCLUDES MY REPORT.
LET ME SEE IF THERE'S ANY QUESTIONS, QUESTIONS.
I BROUGHT THIS UP SEVERAL YEARS AGO AND I KNOW THAT'S A VERY ECONOMICAL WAY OF BILLING FOR SEWER FEES AND, UH, IT, IT WAS, UH, MY IDEA TO DO THIS SEVERAL YEARS AGO BEFORE WE MET TEMPTED TO THIS LAST TIME, BUT I'M GLAD TO SEE THAT IT'S FINALLY COME INTO FRUITION IT LOOKS LIKE.
AND, UH, I KNOW THAT SOME PEOPLE DON'T LIKE IT, BUT, UH, UH, YOU CAN'T PLEASE ALL THE PEOPLE ALL THE TIME IS WHAT I HEARD WHEN I RAN FOR CITY COUNCIL.
BUT, UH, I KNOW THAT THIS SAVES THE CITY ABOUT A HALF A MILLION DOLLARS AND, UH, THAT WILL SAVE THE TAXPAYERS ABOUT A HALF A MILLION DOLLARS THAT THE CITY DOESN'T HAVE TO COLLECT TO DO THIS.
AND, UH, SO I THINK IT'S A VERY GOOD OPTION AND, UH, I'M SURE THAT PEOPLE CAN PLAN AHEAD AND, UH, PAY THEIR TAXES WHEN THEY'RE DUE.
I HAVE PROPERTY IN LA MESA AND UH, THE TENANTS THAT ARE THERE, UM, I JUST LET THEM KNOW WHAT THE TAXES ARE AND UH, THEY JUST INCLUDE IT IN THEIR PAYMENT TO ME, UH, ONCE A YEAR.
IT'S TO MAKE IT, CAN WE GO BACK TO THE SLIDE ON, UH, THE TIMELINE? UH, WHEN THESE WERE THE LAST, UH, PROBABLY THE THIRD FROM THE LAST SLIDE.
JUNE 24, JUNE 28TH, JUNE 30TH, JULY 1ST.
UH, IT HAD A BUNCH OF DAYS ON IT.
JUNE 24, JUNE 30TH, I THINK IT WAS ONE OF YOUR LAST SLIDES.
YEAH, THIS IS THE ONE WITH ALL THE DATES ON IT.
SO, UH, ON JULY 31ST SEND APPROVED TAX ROLL COUNTY.
SO THIS PROGRAM DOES NOT START JULY 1ST IT DOES.
SO WE WILL CALCULATE EVERYTHING FOR JULY 1ST MOVING FORWARD.
IT WILL BE AUTHORIZED BY CITY COUNCIL JUNE 23RD.
AND THEN, AND THEN IT WILL BE ACTUALLY REVIEWED AND SENT OFF TO THE COUNTY BY JULY 31ST.
SO THERE'S A LITTLE BIT MORE THAN A MONTH HERE FOR CITY STAFF TO WORK WITH.
ANYBODY WHO HAS A QUESTION ON THEIR CALCULATION.
[00:30:01]
HAS TO DO WITH FLOAT.SO, UH, HOW OFTEN, WELL DO WE GET PAID BI-MONTHLY AFTER AMENDMENT FROM FATHOM? DOES FATHOM WHEN FATHOM WAS HERE, WERE THEY GIVING US CASH PAYMENTS SIX TIMES A YEAR? IT WAS ACTUALLY JUST A ROLLING CASH WOULD COME IN, REVENUE WOULD COME IN AS BILLS WENT OUT.
SO BILLS WERE GOING OUT IN SEVERAL CYCLES DEPENDING ON WHEN THE METERS WERE READ BY THE WATER DISTRICTS.
SO THAT IT WASN'T SUCH A HUGE CARRY.
EVERYBODY RECEIVED SIX BILLS A YEAR.
HOWEVER, THOSE WIL BILLS WERE THE CYCLE A LITTLE BIT AT A TIME.
SO IN THIS CASE THOUGH, WOULD THE CITY ONLY GET MONEY FROM THE COUNTY TWO TIMES PER YEAR? YES, THAT IS CORRECT.
SO DURING A TRANSITION YEAR IT WOULD MAKE SENSE.
WE'RE NOT GETTING CASH ON A CONTINUAL BASIS, UH, BUT WE'RE HAVING TO PAY OUT TO PRESUMABLY THE CITY OF SAN DIEGO FOR COSTS.
SO I GET THAT WE MIGHT HAVE MONEY IN RESERVES TO FLOAT THAT MONEY.
UH, BUT THAT MEANS THAT WE ARE GIVING UP SOME INTEREST EARNED ON THAT MONEY IN ORDER TO PAY THE BILL BEFORE WE GET THE CASH.
OH, SO WHAT DO YOU, WHAT'S YOUR OPINION ON THAT? EXCUSE ME, JUST ONE SECOND.
MR GOODLUCK I CAN ALSO ADD A LITTLE BIT OF INFORMATION.
I ACTUALLY TALKED TO, UM, FINANCE DEPARTMENT ABOUT THAT.
THEY SAID, YOU KNOW, IF INTEREST RATES ARE AT 12%, THAT WOULD BE OF CONCERN.
BUT SINCE OUR INTEREST EARNINGS ARE BELOW 2%, PROBABLY NOT THAT BIG OF AN ISSUE.
WE CURRENTLY PAY METRO OR THE CITY OF SAN DIEGO FOUR TIMES A YEAR.
SO WE'RE NOT TOO FAR OFF THE CYCLE OF WHEN WE RECEIVE ANY WAY.
AND AS YOU RECALL, THAT'S PRETTY MUCH HOW WE RECEIVE ALL OF OUR REVENUES.
WE DON'T MOST REVENUES, UM, OUR BIG REVENUES DON'T COME CYCLO THEY DON'T COME MONTHLY OR DAILY.
THEY ACTUALLY COME IN BIG CHUNKS OF MONEY.
SALES TAX COMES ALL AT ONE POINT, PROPERTY TAX AT ONE POINT.
SO WE FLOAT A LOT OF THINGS JUST IN OUR OPERATIONS AND ONE OF THE REASONS WHY IT'S IMPORTANT TO HAVE RESERVES.
SO YOUR ESTIMATION IS THE FLOAT WOULDN'T CHANGE KIND OF TO WHAT WE'RE DOING NOW? CORRECT.
MR GOLDWELL, WE ALSO A COUNCIL MEMBER GLOBAL.
WE ALSO RAN A DETAILED ANALYSIS ON THIS TO SHOW OUR REVENUES AND WHEN EXPENDITURES WOULD GO OUT AND YOU CAN SEE THAT WE PUT SOME TIME INTO THIS TO ANSWER THAT EXACT QUESTION TO MAKE SURE THAT WE'D BE OKAY AND WE ARE OKAY.
LET'S GO TO THE FUND BALANCE BETWEEN THE THREE METHODS, UH, AND BEFORE THAT AND THERE.
SO THIS IS GOING TO BE THE RESERVE FUND THAT WE USE FOR CAPITAL IMPROVEMENTS.
THIS IS OUR FUND BALANCE PERIOD FOR WASTEWATER FUND.
SO, UH, IF SOMEBODY SAID, HEY, I THOUGHT THE UH, BILLING COSTS, WHETHER THEY'RE THROUGH THE COUNTY OR WHETHER THROUGH A VENDOR ARE A PASS THROUGH OF ADMINISTRATIVE COSTS, HOW DOES IT CHANGE THE FUND BALANCE IF THE COSTS ARE PASS-THROUGHS? SO THE ORANGE LINE REPRESENTS WHERE WE'RE GOING TO, WHERE WE'RE PROJECTED TO BE WITH THE APPROVED RATES.
THE APPROVED RATES MADE SOME CERTAIN ASSUMPTIONS, AND SO THOSE ASSUMPTIONS HAVE NOW CHANGED.
SO THE ANNUAL ADMINISTRATIVE COSTS THROUGH A VENDOR IS ESTIMATED TO BE ABOUT 48 BUCKS A YEAR, UH, $48 AND 47 CENTS.
AND THE STAFF REPORT, THAT'S ABOUT $4 A MONTH FOR ADMINISTRATIVE COSTS WITH A VENDOR, UH, THROUGH THE COUNTY.
IT'S $23 ROUGHLY, OR ABOUT $2 A MONTH.
SO WHAT WE'RE LOOKING AT IS A VENDOR WOULD COST A CURRENT CUSTOMER $4 A MONTH IN PROCESSING COSTS, AND THE COUNTY WOULD COST $2 A MONTH.
IN OTHER WORDS, WHAT COSTS A CUSTOMER $2 A MONTH MORE OUTSOURCED VERSUS COUNTY? MY CORRECT THERE, RIGHT? YES.
SO FOR ABOUT 25 BUCKS A YEAR, IT WOULD BE OUTSOURCE VERSUS COUNTY? YES.
THOSE, THAT'S ALL THE QUESTIONS I HAVE FOR NOW.
UH, THANK YOU FOR YOUR PRESENTATION, DIRK.
UH, NOW THE MONEY THAT GOES INTO THE SEWER FUND, THAT'S THE ENTERPRISE FUND, ISN'T IT? SO ANY SAVINGS LIKE THAT, $4 MILLION OVER 10 YEARS, THAT HAS TO BE RETURNED TO THE CUSTOMERS EITHER, YOU KNOW, IN LOWER RATES, RIGHT.
OR, OR LESS OF AN INCREASE, IT MAY TRANSLATE INTO LESS OF AN INCREASE IF THAT'S HOW IT'S USED OR IT HELPS US TO, UM, ADD TO THAT DEFICIT OF CIP
[00:35:01]
SPENDING THAT WE'RE IN RIGHT NOW.SO, AND WE CAN'T USE THAT FOR POLICE OR FIRE PARAMEDICS.
IT CAN ONLY BE USED FOR SEWER.
SO THE PEOPLE THAT PAY IT GET THE BENEFIT.
PHIL, DID YOU HAVE ANY QUESTIONS? UM, JUST CLARIFICATION.
UM, SO WHEN WE'RE TALKING ABOUT THE, UH, CLOSE TO HALF A MILLION DOLLARS IN, IN, UH, EXTRA COSTS FOR SAVINGS, LET'S SAY SAVINGS PENNY.
RIGHT? UM, THAT WOULDN'T NECESSARILY BE FOR THE CITY, RIGHT? BECAUSE IF, IF WE HAD THE CITY HAD MORE COSTS, IT WOULD BE A MATTER OF PASSING THOSE COSTS ON TO THE CUSTOMER, RIGHT? CORRECT.
SO THE CITY STAYS SOLVENT NEUTRAL EITHER WAY? CORRECT.
SO THE, THE REAL QUESTION IS, UH, IS IT GOOD FOR US TO ADD THOSE COSTS TO THE, TO THE, SIR? IS THERE ANYTHING ELSE THAT I, THAT I'M MISSING IN THAT? WELL, LIKE I SAID EARLIER, WE HAVE ABOUT $10 MILLION WORTH OF WORK THAT WE NEED TO DO ANNUALLY TO MAINTAIN OUR SYSTEM.
AND RIGHT NOW WE CUT THAT BACK IN ORDER TO NOT HAVE TO RAISE RATES SO QUICKLY SO THAT WE DIDN'T GO NEGATIVE AND SO, AND THE ASSUMPTIONS WERE MADE ON THE OLD COSTS.
SO IF WE DO GO WITH A MORE EXPENSIVE OPTION, THAT JUST MAKES IT SO THAT THAT CURVE IS LESS STEEP AND THEREFORE WE'RE NOT GETTING OUT OF THE, THE NOSE DIVE THAT WE ARE IN AS QUICKLY.
AND IT JUST TAKES LONGER TO GET BACK TO WHERE WE SHOULD BE.
AND I GOTTA TELL YA, UH, AS AN ENGINEER AND SOMEBODY WHO IS LOOKING AT THE INFRASTRUCTURE OF OUR CITY, UM, WE DO NEED TO BE CONCERNED A LITTLE BIT THAT WE NEED TO MAINTAIN THE SYSTEM.
AND IF WE KEEP ADDING COSTS ON TOP OF THAT, THE SYSTEM WON'T GET MAINTAINED THE WAY IT WILL AND PEOPLE GOT TO FLUSH THEIR TOILETS.
THAT MAKES PERFECT SENSE TO ME.
WHY WOULD IT IF IT'S A PASS THROUGH TO THE CUSTOMER, WHY DON'T WE MAKE IT WOULD MAKE ANY DIFFERENCE IN OUR ABILITY TO MAINTAIN THE SYSTEM.
OH, WE CAN GO AHEAD AND RAISE RATES AGAIN AND, AND RAISE RATES ON TOP OF THE APPROVED RATES.
SO BASICALLY WHAT YOU'RE SAYING IS THAT THE HIGHER COSTS IN THE SYSTEM WOULD MEAN RAISING RATES.
THAT'S, THAT'S THE FORM IN WHICH THE PASSTHROUGH WOULD COME.
DIDN'T WE GO FOR MANY YEARS WITHOUT, DURING THE GREAT RECESSION, WITHOUT RAISING THE RATES.
AND SO WE ALSO HAD AS SOON AS YOUR SEWER PIPE FAILURE, IT DIDN'T, WE WERE, SOME SEWAGE WAS COMING UP.
IN FACT, IT FLOODED OUT OF HOME.
THAT WAS A MAJOR EXPENSE THAT WE HAD TO TAKE CARE OF, SO WE WANT TO AVOID THAT FOR SURE.
I GUESS I WANT TO SEPARATE THE COST OF, OF SEWER SERVICE VERSUS THE COST OF BILLING.
AND I THINK WHAT WE'RE TALKING TODAY IS ABOUT THE COST OF BILLING.
WHO'S GOING TO HANDLE THE BILL, THE COUNTY OR IN HOUSE OR AN OUTSOURCE VENDOR.
THE SEWER COSTS, THE, THE, THE MAINTAIN, MAINTAINING THE SYSTEM, THE UPGRADING, THE RATES ARE PROJECTED TO INCREASE OVER THE NEXT FIVE YEARS QUITE A BIT.
BUT THAT'S BECAUSE THE CITY OF SAN DIEGO IS GOING TO PASS THROUGH COSTS TO US FOR THEIR PURE WATER SYSTEM AND WHATEVER ELSE THEY DO.
SO THAT TO THE BILLING SIDE, WHICH IS I THINK WHAT WE'RE TALKING ABOUT HERE TODAY, UH, TODAY THE ESTIMATE IS 48 BUCKS A YEAR FROM AN OUTSOURCE VENDOR VERSUS 23 FOR THE COUNTY.
SO IN FIVE YEARS TODAY IT'S A $25 GAP.
WHAT'S YOUR OPINION ON IN FIVE YEARS WHAT THAT GAP MIGHT BE? IT, GOSH, THE MAIL GO UP.
IT JUST GETS BIGGER PROPORTIONATELY AND WE CAN'T CONTROL THOSE OTHER COSTS.
THE COSTS OF THE COUNTY OPTION IS PRETTY MUCH STABLE.
SO WE'RE PROJECTING ACTUALLY PRETTY MODESTLY.
UM, THE COST OF INHOUSE OR THE COST OF CON, UH, CONTRACTING IT OUT.
WE'VE LOOKED AT THAT AND WE'RE TRYING TO BE A LITTLE BIT CONSERVATIVE IN THAT NUMBER.
MEANING, NOT TRY TO JACK IT UP TO SHOW THAT THERE'S THIS BIG CHASM BETWEEN THE TAX ROLL OPTION AND GOING OUTSIDE OR BRINGING IT IN HOUSE.
BUT THE REALITY IS IS THOSE, THOSE NUMBERS MAY EVEN BE BE HIGHER THAN THEY ARE.
UM, AND, AND YOU MENTIONED, LET'S SEPARATE THE COSTS, HOWEVER IT'S ALL THE SAME POT.
THE WASTEWATER FUND IS, THE WASTEWATER FUND IS THE WASTEWATER FUND AND IT ALL COMES OUT OF THE SAME, SAME AREA.
[00:40:01]
WE TALK ABOUT ONE OPTION BEING $24 AND ONE OPTION BEING, I THINK YOU SAID $42 A YEAR.WELL, WHAT WE HAD BUDGETED ON WAS THE $35.
SO A YEAR COST OF DOING BUSINESS, THE COST OF FATHOM WAS INCLUDED IN OUR BUDGET AND OUR PR AND OUR ASSUMPTIONS FOR RATE INCREASES.
SO IF IT'S HIGHER THAN THAT, THEN THE RATES THAT WE'VE APPROVED WILL HAVE TO GO UP EVEN MORE IN ORDER TO MAKE UP FOR THAT.
SO MR MR GOBLE, WE RAN SOME OTHER CALCULATIONS AS WELL.
SO WE KNOW THAT THE COUNTY BILLING SYSTEM IS PRETTY STABLE AND TALKING TO OTHER CITIES, THOSE FEES HAVEN'T GONE UP OVER THE YEARS.
UM, WE WOULD NEED TO CONTINUE TO USE A CONSULTANT DURING THAT PERIOD OF TIME.
SO WE EXPECT SOME SORT OF INCREASE THE CPI INCREASE FROM THAT CONSULTANT, BUT THAT, THAT UM, ANNUAL COST IS ABOUT A HUNDRED THOUSAND DOLLARS.
SO 3%, WE'RE TALKING A FEW THOUSAND DOLLARS MORE A YEAR.
UM, UNDER THE OTHER SCENARIO, THE CONSULTANT WAS 800 AND UM, 30, ALMOST $840,000 I BELIEVE.
SO IF YOU WERE TO DO A 3% INCREASE, WHICH IS KIND OF TYPICAL OF A LOT OF OUR CONSULTANTS, THAT ENDS UP BEING ABOUT A DOLLAR 45 PER YEAR PER CUSTOMER.
SO YOU CAN SEE THAT THE, THE PRICE DIFFERENCE, ALTHOUGH MAYBE A FEW DOLLARS DIFFERENT TODAY IN FIVE YEARS, YOU CAN ASSUME THAT THAT'S GOING TO BE A FIVE OR SIX OR $7 DIFFERENCE BETWEEN THE TWO DIFFERENT OPTIONS.
SO WE HAVE A $25 GAP BETWEEN THE COUNTY TAX FOR ALL OPTION AND AN OUTSOURCE VENDOR.
AND YOU'RE SEEING THAT COULD GROW AN ESTIMATE TO 30 TO $31 GAP IN FIVE YEARS.
BASED ON HOW WE PAY OUR CONSULTANTS NOW AND IF WE WERE TO DO IT IN HOUSE, THAT WOULD, I THINK THAT WOULD EVEN GROW MORE IF YOU LOOK AT OUR, OUR ANNUAL COSTS AND STAFFING, JUST BECAUSE THE PENSION COSTS IT GOES UP AT LEAST 5% A YEAR.
SO WE THINK WE WOULD SEE EVEN A BIGGER GAP.
SO, UH, DIRK, WOULD IT BE FAIR TO SAY THAT REALLY THE ONLY WAY WE COULD SAVE OUR TAXPAYERS' MONEY IS BY CHANGING THE WAY THE BILLING IS DONE? CAUSE WE HAVE NO CONTROL OVER WHAT SAN DIEGO CHARGES US FOR SEWER.
OH, I WANT TO MAKE SURE I'M UNDERSTANDING THE CORRELATION YOU'RE MAKING BETWEEN ALL OF THESE.
CAUSE LIKE STEVE PARSED OUT, WE'RE TALKING ABOUT A COUPLE OF DIFFERENT THINGS, BUT THEY ALL COME OUT OF THE SAME POT OF MONEY.
SO WE HAVE A SAVINGS ACCOUNT, OUR RESERVE FUND THAT PAYS FOR IMPROVEMENTS TO OUR WASTEWATER INFRASTRUCTURE PIPES AND THINGS.
SO WE HAVE AN OPPORTUNITY TO GET THAT SAVINGS ACCOUNT UP BY CHOOSING THE LESS EXPENSIVE OPTION, WHICH IS THE COUNTY TAX ROLL IS WHAT YOU'RE SAYING.
AND THAT WILL INCREASE OUR SAVINGS ACCOUNT, WHICH WILL ALLOW US TO MAKE THE IMPROVEMENTS ON OUR SEWER MUCH QUICKER BEFORE IT FAILS.
LIKE YOU SAID, IT JUST DID IN THE PAST.
IT'LL HELP US TO INCREASE IT AT A MORE RAPID RATE.
BECAUSE WE HAVE LESS FUNDS GOING OUT THAN WE ANTICIPATED BEFORE.
AND WHEN, I MEAN OBVIOUSLY NO ONE WANTS, LIKE YOU SAID, THAT'S, THAT'S A CATASTROPHES WHEN OUR, WHEN OUR SYSTEM BREAKS AND HOUSES FLOOD AND THINGS LIKE THAT.
SO, UM, THAT'S GOING TO, IF THAT CONTINUALLY HAPPENS, THAT'S GOING TO CONTINUE TO INCREASE OUR COSTS, TAKE MONEY OUT OF OUR RESERVE FUND OR SAVINGS AND PUT US IN A TIGHTER POSITION TO RAISE SEWER RATES ALTOGETHER IS WHAT YOU'RE SAYING? YEAH.
TO PUT IT IN PERSPECTIVE, A HALF A MILLION DOLLARS EXTRA A YEAR IS ABOUT A MILE AND A HALF WORTH OF PIPES THAT WE COULD LINE.
IT SEEMS, I, I, I'M, I'M GETTING IT.
I, I'M SORRY, I
LET, LET ME, LET ME TAKE THIS.
SO I'VE HEARD A LOT OF TERMS AND I'M GOING TO, I'M GOING TO TRY TO EQUALIZE TERMS A LITTLE BIT.
WE HAVE A, WE HAVE A RESERVE, WE HAVE MONEY IN OUR ACCOUNT AND THAT MONEY IN THE ACCOUNT PAYS FOR A LOT OF THINGS.
IT PAYS FOR JUST GENERAL OPERATIONS.
AND SO ALL OF OUR COSTS, WHETHER THEY BE CIP, OPERATIONS, I WOULD SAY HOW WE BILL AS PART OF OPERATIONS, IT'S NOT TREATING THE SEWAGE, BUT IT'S PART OF THE OPERATIONS.
ALL THOSE COSTS ARE THROWN INTO THE POT RIGHT NOW WHEN WE PRESENT OR WHEN WE PRESENTED THE LAST RATE CASE, WE COULD SEE THAT IF WE CONTINUE TO BILL AT THE LEVEL WE HAD BEEN BILLING AT, WE WOULD BE IN DEFICIT MODE.
AND SO THAT'S WHY WE DID THE INCREASES.
[00:45:01]
THAN GETTING TO MISREPRESENT, CAN YOU GO TO THE NEXT SLIDE? ACTUALLY, I THINK THAT'S USEFUL THAT THAT TOP LINE IS THE LINE THAT INDUSTRY SAYS WE SHOULD BE AT.RIGHT? AND SO AS YOU RECALL, IT WOULD BE INSANELY IMPOSSIBLE TO, UH, BILL EVERYBODY TO GET TO THAT LINE IN YEAR ONE.
AND SO WE SAID, WELL, LET'S GRADUALLY DO IT OVER A MULTI YEAR PERIOD OF TIME.
WHAT WE'RE SAYING IS BY CHOOSING, BUT BY REDUCING COSTS, HOWEVER WE CAN DO THAT, WHETHER IT BE IN AN HOW WE BILL FOLKS AND HOW WE TREAT SEWAGE WATER, WHETHER WE DO AWP WITH PADRE DAM, EVERYTHING WE DO WILL GET US CLOSER, FASTER TO THAT IDEAL LINE AS POSSIBLE.
IF WE'RE COMFORTABLE WITH THAT, WITH THE PROGRESS OF GETTING TO THAT LINE.
I THINK MR EPPERSON MADE THE POINT IF, IF WE DON'T WANT TO GET TO THAT IDEAL LINE BY FIVE OR SIX OR SEVEN OR EIGHT YEARS AND WE'RE OKAY WITH 10 YEARS, WE CAN ACTUALLY RATCHET DOWN THEIR SEWER RATES OVER THE NEXT COUPLE OF YEARS.
SO YOU'RE ELIGIBLE TO INCREASE RATES BY 11% NEXT YEAR.
RIGHT? SO THEORETICALLY, I'M NOT SAYING YOU CAN REDUCE IT TO 5%, BUT YOU COULD REDUCE IT MAYBE TO 10 AND A QUARTER OR 10 AND A HALF BECAUSE YOU HAVE A LITTLE BIT OF PLAY BECAUSE YOU'VE FIGURED OUT A WAY TO SAVE SOME MONEY IN THE OVERALL OPERATIONS.
SO IT'S MORE ABOUT OVERALL OPERATION SAVINGS, NOT SO MUCH BILLING SAVINGS.
SO IF THE RATE IS A BUCK AND YOU HAVE A LOWER COST BY GOING TO THE COUNTY, YOU WILL HAVE MORE LEFTOVER.
I DON'T WANT TO USE THE WORD PROFIT, THAT'S NOT THE RIGHT WORD.
BUT IF I CHOOSE AN OUTSOURCED VENDOR, I'LL HAVE A LITTLE BIT LESS RESERVE LEFT.
AND SO YOU'RE SAYING IF I CHOOSE THE LOWER OPTION THAT WILL ALLOW ME TO HAVE MORE RESERVE TO BUILD.
THE PUBLIC WOULD SAY, WHY DON'T YOU JUST LOWER THE RATES THEN? IF THE, IF THE COST OF OF BILLING IS LOWER, WHY DON'T YOU JUST LOWER THE RATE TO 90 CENTS AND, AND NOT BUILD THE RES, UH, PASS THROUGH THE ACTUAL COST? I THINK THAT'S MORE OF A STATEMENT THAN IT IS A QUESTION.
AND WE'LL GET TO DISCUSSION LATER ON.
BUT THAT'S WHAT I THINK WHERE THE PUBLIC WOULD BE COMING FROM.
WHY WOULD YOU CHARGE A BUCK IF YOU, IF YOU GET COST SAVINGS FROM DOING SOMETHING AT A CHEAPER COST, WHY NOT PASS THOSE SAVINGS ONTO THE PUBLIC I THINK IS WHERE I'M GOING WITH MY HEAD IN THAT.
SO GO WITH GARY AND DISCUSSION.
I'LL SAY, WELL THE RATES ARE KIND OF A DOUBLE EDGED SWORD.
SO WE HAVE TO FIND THE SWEET SPOT BECAUSE WE, IF WE HAD EXTRA, LET'S SAY WE MAKE 10 CENTS MORE RIGHT BY THIS COST SAVINGS, THAT'S 10 CENTS WE MIGHT WANT TO PUT INTO WHAT THEY CALL CAP CIP IS CAPITAL IMPROVEMENT PROJECTS.
IT IS JUST FOR THE AUDIENCE'S BENEFIT.
AND AWP IS ADVANCED WATER PURIFICATION WHERE THEY, UH, TAKE THE SEWAGE AND THEY CLEAN IT.
SO IT'S ACTUALLY CLEANER THAN THAT.
YOUR OWN TAP WATER AND IT'S RECYCLED.
AND THAT PROJECT WE'RE WORKING ON WITH A PADRE DAM TO, TO ACTUALLY SAVE MONEY THAT WAY TOO.
UH, BUT WHAT WE DON'T WANT TO HAVE HAPPEN IS WE DON'T MAINTAIN, AGAIN, CAPITAL IMPROVEMENT CHUBB PROJECTS THAT WE DON'T MAINTAIN.
THESE, HOW OLD ARE THE PIPES NOW IN THIS PARTS OF THE CITY? SOME 50 PLUS YEARS OLD.
YEAH, THEY'RE LOOKING A LITTLE ROUGH.
AND TO ME IT'S REALLY IMPORTANT WHEN I FLUSH THE TOILET THAT SEWAGE DOESN'T COME UP THROUGH MY BATHTUB.
AND I THINK IT'S IMPORTANT TO A LOT OF PEOPLE, ESPECIALLY DOWN ON THE VALLEY FLOOR WAS REALLY LOW THAT UH, WE MAINTAIN THE SEWAGE CAUSE THERE'S ALL SORTS OF HEALTH ISSUES AND ALL THAT THAT HAS TO BE TREATED RIGHT.
SO AGAIN, UH, UH, WE WENT FOR MANY YEARS DURING THE GREAT RECESSION, UH, CAUSE WE KNEW THAT PEOPLE WERE JUST GETTING, A LOT OF PEOPLE WERE JUST GETTING BY AND PEOPLE LOST THEIR JOBS AND EVERYTHING ELSE THAT, THAT WE DIDN'T RAISE THE RATES FOR YEARS AND YEARS.
SO NOW WE'RE KIND OF PAYING THE PRICE, UH, TO MAINTAIN THESE OLD OLD PIPES.
BOB
I MEAN, YOU KNOW, YOU NEVER KNOW WHEN YOU'RE GOING TO HAVE A PLUMBING PROBLEM IN YOUR HOUSE, BUT WHEN YOU HAVE IT, IT'S GOOD TO HAVE A RESERVE SO THAT YOU CAN DO IT.
AND THAT'S WHY PEOPLE HAVE CREDIT CARDS A LOT OF TIMES BECAUSE THEY CAN PUT IT ON A CREDIT CARD AND THEN PAY FOR IT OVER A PERIOD OF TIME.
SO, UH, IT'S IMPORTANT TO HAVE A RESERVE THAT YOU CAN DEPEND ON THAT IF YOU HAVE A MAJOR PROBLEM, LIKE THEY SAY, THIS IS THE LEVEL WE SHOULD BE AT AND WE AREN'T THERE.
UH, IF WE ADDED A MAJOR CATASTROPHE,
[00:50:01]
WE'D HAVE TO GO OUT AND BORROW MONEY AT A, AT A COST HIGHER THAN WHAT OUR INTEREST IS EARNING IN ORDER TO FIX IT.AND THEN THE RATES WOULD EVEN HAVE TO GO UP MORE.
UM, WE'LL GO AHEAD AND, UH, YES.
QUESTIONS FROM THE AUDIENCE AND THEN WE MAY CALL YOU BACK.
I'D LIKE TO GO AHEAD AND OPEN UP THE PUBLIC HEARING AND ASK ANGELA TO SPEAK COURAGE.
THE FIRST SPEAKER IS DELORES LENDERS, THE DOLORES COUNCIL MEMBERS STAFF.
I WROTE A LETTER OF PROTEST, UH, IN JULY 19 2013.
THIS SUBJECT WAS BROUGHT UP BEFORE THE COUNCIL TO, I'LL, I'LL WORD IT THE WAY ONE OF THE COUNCIL MEMBERS STATED IT.
UM, I HAVE TO LOOK INTO OTHER PEOPLE'S SHOES.
IT IS MUCH EASIER TO PAY TWO MONTHS THAN PAY FOR A YEAR.
THE COUNCIL MEMBERS THAT VOTED NO ARE STILL ON THIS PANEL TODAY.
SO IF THEY'RE CHANGING THEIR MINDS, THEN YOU HAVE TO LOOK AT PEOPLE.
WE HEARD ALL THIS CONVERSATION ABOUT HOW MUCH IT'S GOING TO COST YOU.
I HAVE A SEWER BILL OF $89 EVERY TWO MONTHS.
WHAT DO YOU THINK THAT IS GOING TO BE FOR A YEAR ON MY MORTGAGE PAYMENT? SECOND OF ALL, UH, THE SEWER IS A PUBLIC UTILITY LIKE WATER IS.
AND, UM, IF YOU CAN AFFORD TO SPEND MONEY TO MAKE PEOPLE WANT TO LIVE IN EL CAHONE, UH, I THINK YOU CAN SPEND IT ON SOMEBODY DOING THE BILLING BECAUSE IF SOMEONE BUYS A HOME, WE HAVE A HOME FOR SALE ON MY STREET, 1333.
AND UH, IS THE NEW OWNER GOING TO PAY A SOAR DELL BASED ON THE PREVIOUS OWNER? HOW ARE YOU GOING TO DETERMINE WHAT IS GOING TO HAPPEN? HOW ABOUT ABOUT ALL THESE HOMES THAT ARE IN ESCROW? UH, TO YOU? IT'S MONEY RESERVES.
IF YOU WERE A BOY SCOUT, IF YOU ARE A GIRL SCOUT, IF YOU WERE A BROWNIE, IT'S CALLED BE PREPARED.
YOU ALL PERRY ARE PREPARE FOR RETIREMENT.
WHEN YOU'RE BUYING A HOME, YOU'RE ALL PUTTING MONEY ASIDE AND NOW YOU'RE TALKING ABOUT YOU NEED A FUND, YOU NEED A FUND AND IT'S GOING TO BE ON THE BACKS OF, FOR RESIDENTS.
I HEARD YOU TALK BUT NOT ONCE.
NOT ONCE DID ANYBODY LOOK AT THE FACT THAT WE ARE HOMEOWNERS IN THE CITY OF EL CAHONE.
AND YOU WONDER WHY PEOPLE DON'T WANT TO SAY, OH, WE'RE FOR MALKA HOME BECAUSE LA MESA DID IT.
WELL, SACRAMENTO HAS A BILLING AND ALL YOU HAVE TO DO IS LOOK ON THE INTERNET.
YOU WANT PEOPLE TO BUY HOMES AND ALCOHOL OR DO YOU WANT ALL THOSE APARTMENT BUILDINGS YOU'RE BUILDING ON WASHINGTON FOR PEOPLE TO BUY? NO ONE'S GOING TO COME INTO EL CAHONE.
YOU DON'T HAVE A MOVIE THEATER.
COUNCILMEMBER CANDIDATE WOULD LIKE TO SAY SOMETHING.
UM, ACTUALLY IF YOU HAVE A IMPOUNDED PACK COUNT ON YOUR MORTGAGE, YOU'LL BE PAYING YOUR, YOUR, UH, SEWER BILL EVERY MONTH IS PART TO YOUR MORTGAGE COMPANY IF YOU HAVE AN IMPOUND ACCOUNT.
SO IT'LL ACTUALLY BE PAYING LESS THAN YOU DID YOU DO NOW.
AND UH, THE, AND IF YOU DON'T, YOU PAINT IN YOUR PROPERTY TAX BILL, WHICH IS TWICE A YEAR, DECEMBER 10TH AND APRIL 10TH, I THINK.
MIRROR WELLS, HONORABLE COUNCIL MEMBERS OF CITY OFFICIALS, FRIENDS.
[00:55:02]
OF ONE 46 PLANKS OR ROAD ON THE TOP OF FLETCHER HILLS.I HAVE BEEN A RESIDENT OF FLETCHER HILLS SINCE 1983 AND I'M WELL AWARE OF THIS SEWER PROBLEM OF LAST 10 YEARS AND I CAME IN HERE TRYING TO LET YOU LOOK AT OPTION NUMBER THREE.
BUT AFTER LISTENING TO THE FIRST SPEAKER, I GO INTO THE HALF TO MODIFY MY OBJECTIONS AND I, I WOULD LIKE TO HAVE YOU TAKE IN CONSIDERATION THE NUMBER OF SENIORS WE HAVE IN THIS CITY.
UM, THE LOW INCOME PEOPLE AND TAKEN GOVERNOR, THE GOVERNOR'S NEW RENT INCREASE POLICY OF 5% A YEAR OR RENT CONTROL, WHICH IS FOUR APARTMENTS AND A MULTI DWELLINGS.
NUMBER TWO, I LIKE TO SEE A MAP OF INFRASTRUCTURE, WHAT CONDITION OUR SEWER LINES ARE IN.
I'M IN THE ORIGINAL AREA OF FLETCHER HILLS WERE ED FLETCHER BUILT MY HOME IN 1952 AND I CAN TELL YOU THE, THERE HAS BEEN NO IMPROVEMENT SINCE, SINCE THEN.
BUT I'D LIKE TO SEE THE CONDITION AND I'D LIKE TO HAVE MORE INFORMATION ON THE BONDS THAT IF WE HAVE SOME BONDS OR WHETHER OUR COSTS IN THE FUTURE TO REPAIR FOR SYSTEM.
AND NUMBER THREE, I HAVE FAITH IN OUR PEOPLE HERE IN THE CITY.
I LIKE TO SEE IT DONE IN HOUSE.
I DON'T LIKE GOING OUTSIDE OF THE CITY, UH, BECAUSE I THINK IT'S TO BE A, A NARRATIVE MASS WITH SANDAG.
I THINK SANDAG HAS REALLY HURT THE COUNTY OF SAN DIEGO.
AND IT LOOKS LIKE YOU'RE SEWING.
I'LL HAVE A, A CZAR OF SEWER ARE, AND THEN I, I'M PAYING, OH, I'M PAYING ABOUT $60 EVERY TWO MONTHS.
THAT'S A B, $360 GOING ON MY A TAX THING.
NOW WHAT ABOUT MY, UH, MY SON AND GRANDCHILDREN.
WHY ARE THEY NO PAY? NOTHING WAS SAID ABOUT, UH, CAPITAL IMPROVEMENTS.
SO AT THIS TIME I WOULD LIKE TO GIVE YOU A A YELLOW FLASHING LIGHT.
PROCEED WITH CAUTION AND I'M TAKING CONCERN ABOUT SENIOR, SOME OF PEOPLE THAT ARE ON FIXED INCOMES.
FRANK, FRANK KELLER, NOW SKIN.
UM, I LISTEN TO THE DIRECTOR'S REPORT.
I WISH I WOULD'VE KNOWN ALL THAT INFORMATION BEFORE I WROTE DOWN MY NOTES BEFORE I CAME HERE.
FIRST OF ALL, I DON'T WANT OH $800 ADDED TO MY TAX BILL AT THE END AND THAT YEAR CAUSE THAT'S WHAT I'M PAYING RIGHT NOW.
NOW THE DIRECTOR POINTED OUT THAT WE'RE GOING TO SAVE $471,000.
THEORETICALLY ON THE AGENDA IT SAYS DOWN HERE YOU'RE GOING TO AWARD A SALT.
YOU WANT TO AWARD A SOLE SOURCE CONTRACT TO ENVY FIVE FOR $194,000 FOR BILLING SUPPORT AND TAX ROLL STUFF.
WELL IF I SUBTRACT THAT NOW YOUR SAVINGS ONLY $277,000 IS THIS A CONTRACT GOING TO BE EVERY YEAR?
DO YOU REALLY BELIEVE IT'S GOING TO STAY $353,000 EVERY YEAR IN THIS COUNTY? MMM.
IN 2013 AND 2014 UH, THE CITY WAS HAVING A DIFFICULT TIME DOING SEWER BILLS.
I GOT MANY SEWER BILLS IN SEPTEMBER FOR BILLING PERIODS IN JANUARY AND THIS WENT ON FOR OVER A YEAR.
YOU GUYS GOING TO SCREW THAT UP AGAIN? ANOTHER THING, I
[01:00:01]
WANT TO SEE AN INVOICE MAILED TO ME EVERY OTHER MONTH FOR THE CHARGES FROM MY SEWER, NO DIFFERENT THAN SDG AND E SENDING ME A BILL, AN INVOICE EVERY MONTH FOR MY SOLAR PANEL BILL.IF YOU CAN'T DO THAT, I WANT TO SEE IT ONLINE AND IF WE'RE SAVING $471,000 I WANT TO SEE THE $471,000 SAVINGS.
I KNOW THEY WANT TO ADD $471,000 TO THE, TO THE RESERVE FUND, BUT $471,000 OUT OF 10 MILLION.
LET ME GET, SEE IF YOU CAN GET YOUR QUESTIONS ANSWERED.
UH, SO ONE OF THE QUESTIONS WAS, IS THE SAVINGS OR THE COST FOR THE COUNTY TAX ROLL INCLUSIVE OF THE NV FIVE OR IS THAT AN ADDITION? SO THE TOTAL AMOUNT THAT WE PRESENTED IN THE STAFF REPORT INCLUDES ENVY FIVES, 180, $190,000 AMOUNT.
SO THAT IS INCLUSIVE OF THAT AMOUNT.
WE, UM, BECAUSE ENVY FIVE CAN MORE EFFICIENTLY PREPARE THE TAX ROLL, WHICH IS NOT AN EASY THING TO DO FOR THE, FOR THE COUNTY, WE WOULD RECOMMEND UTILIZING THEM YEAR AFTER YEAR.
ONCE WE GET THE SYSTEM SET UP, WE THINK THAT THE COSTS WILL GO DOWN OR WE KNOW THE COST WILL GO DOWN AND YEAR TWO BY ABOUT $80,000.
SO THAT WILL BE ABOUT A HUNDRED THOUSAND DOLLARS THAT WE'LL BE PAYING EACH YEAR, UM, ON TOP OF OUR FEES TO THE COUNTY.
BUT THAT'S THE AMOUNT THAT'S INCLUDED IN THE STAFF REPORT IS INCLUSIVE OF BOTH THE COUNTY FEES AND THE
UM, THERE WAS ANOTHER QUESTION ABOUT THE COUNTY INCREASING RATES OR THEIR, THEIR COLLECTION CHARGE.
I CAN ONLY SPEAK FROM THE PAST, BUT AS THE CITY MANAGER OF LEMON GROVE WHERE WE BUILD ON SEWERS, IT NEVER DID INCREASE.
THEY, THEY CONTINUE JUST TO GET A PERCENTAGE OF THE BILL.
SO THAT'S HOW THEY'RE ABLE TO RECOVER THEIR COSTS.
CLEAR ON WHAT THE $194,000 FOR THE MV FIVE THING, IS THAT RIGHT? THE $195,000 IS, UM, YEAR ONE IS A YEAR ONE CHARGE.
IT'S INCLUDED IN THE TOTAL COST FOR THIS PROCESS, THIS OPTION, AND IN YEAR TWO THAT IT WILL DROP TO ABOUT A HUNDRED DOLLARS.
I'M ASSUMING MOST OF THAT'S DATA ENTRY, GETTING THE SYSTEM SET UP AND GETTING EVERYBODY IN THE SYSTEM.
YOU'RE GOING TO PAY THE COUNTY $353,000 AND YOU'RE GOING TO PAY THIS CONTRACTOR ANOTHER A HUNDRED THOUSAND DOLLARS NO, THIS IS INCLUDED.
NO, IT'S EVERYTHING'S INCLUDED.
THAT'S THE ENTIRE, THE 53 TO BOTH ENTITIES.
53 INCLUDES THE ONE, THE PROCESSING FOR VI.
WE COULD, YOU KNOW, IT, IT WOULD JUST BE WHAT WE'RE TRYING TO TODAY IS WHAT THE BEST, UH, THE BEST COURSE AGO.
COST EFFICIENCY, THE WHOLE BALL OF WAX.
SO LOOK, YOUR, YOUR, YOUR COMMENTS ARE ALL HELPFUL TO US TO MAKE THIS DECISION.
SO THE DECISION TO STOP IT MADE IT ALL.
I APPRECIATE THIS OPPORTUNITY TO SPEAK.
THIS IS MOSTLY A PERSONAL QUESTION, BUT I AM A PRESIDENT OF A HOMEOWNER'S ASSOCIATION.
WE ARE 21 UNITS IN A DUPLEX COMPLEX AND EACH ONE, EACH UNITS INDIVIDUALLY OWNED, BUT WE FUNCTION OF A ONE WATER METER.
WE WERE GETTING ONE WATER BILL EVERY OTHER MONTH AND ONE SEWER BILL EVERY OTHER MONTH.
AND THAT WAS BEING PAID FROM OUR HOMEOWNERS ASSOCIATION FEE.
SO NOW WE HAVE NO WATER METERS ON OUR UNITS AND THERE ARE SEVEN UNITS IN THAT 21 THAT ONLY ONE PERSON LIVES IN THAT UNIT.
SO HOW WILL OUR BILL BE? UM, PIG YEARD IF WE GO TO THIS SYSTEM.
WELL I THINK IT'S GOING TO CHANGE YOUR BILL.
I THINK IT'S GOING TO BE CHA IS THE WAY THE MONEY'S COLLECTED.
DOES THAT MAKE SENSE? SO THAT THE MONEY CAN EITHER BE COLLECTED BY THE TAX ROLLS OR BY A BILL THAT COMES TO THE HOMEOWNERS ASSOCIATION EVERY TWO MONTHS.
EITHER WAY IT STILL GOES TO THE HOMEOWNERS ASSOCIATION.
YOU PULL THE MICROPHONE DOWN A LITTLE BIT.
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YOU'RE HERE.WILL YOU PULL THE MICROPHONE DOWN A LITTLE BIT SO WE CAN HEAR YOU? YEAH.
YEAH, I HAVE TROUBLE WITH MY VOICE UNDERSTANDING.
ANYWAY, THIS UM, SORA BILL, UM, THE WAY I APPRECIATE THE WORK YOU ALL DID TO FIGURE OUT THIS NEW WAY TO BLOW FOR SEWER.
I KNOW IT TAKES A LOT OF WORK AND I REALIZE BILLS HAVE TO GO UP.
THEY ALWAYS HAVE TO GO UP IN A RUMOR FOR ALL OF US.
NOT JUST THIS, BUT EVERY BILL WE GET.
AND I JUST WANTED TO MENTION THAT.
UM, MY FIRST QUESTION IS, IS THE SEWER BILL THE SAME AMOUNT EACH BILLING SERVICE PERIOD FOR RESIDENTS? THAT'S MY FIRST QUESTION.
I WAS JUST WONDERING ABOUT THAT AS FAR AS IF WE CAN FIGURE OUT HOW MUCH IT'S SUPPOSED TO BE.
BUT IF IT'S NOT, THEN WE HAVE TO COME AND OUR CALL AND FIND OUT WHY IS THAT WHAT WE DO? THAT WAS MY FIRST QUESTION.
I'M GLAD WE'LL ANSWER ALL THOSE QUESTIONS AT THE END.
MY SECOND QUESTION WAS REGARDING, AND I THOUGHT OF THIS RIGHT AWAY AND YOU'VE BEEN TALKING ABOUT IT.
WHAT WILL HAPPEN TO THE MONEY THE SEWER BILLING SAVES IF IT'S, IF IT SAVES, IT SEEMS THAT THE BILLING SAVINGS SHOULD GO BACK TO THE CUSTOMER.
THIS IS A BILLING PROBLEM ON THIS.
I'VE READ EVERYTHING THAT'S SEPARATE.
THAT'S A SEPARATE ISSUE I BELIEVE.
SO THAT'S MY TWO QUESTIONS OR TO HANDLE THAT.
CERTAINLY, UH, MR MAYOR, MEMBERS OF THE COUNCIL CURRENTLY I SHOULD SAY THERE ARE SOME AGENCIES WHERE YOUR SEWER BILL FLUCTUATES FROM MONTH TO MONTH OR BY MONTH BY MONTH AND IT'S BASED ON WATER METER READINGS.
AND THAT'S IN CITIES THAT READ THE METER EVERY SINGLE MONTH.
WE ACTUALLY LOOK AT WATER CONSUMPTION IN THE WINTER MONTHS.
WE WOULD FIND THAT THE TWO LOWEST, UH, CONSUMPTION MONTHS AND THEN WE BASE YOUR ENTIRE ANNUAL BILL OFF OF THAT.
SO YOUR BILL IS EXACTLY THE SAME BIMONTHLY, BIMONTHLY, ONCE WE MAKE THAT CALCULATION SO THAT, THAT WOULDN'T CHANGE OVER WHAT WE'RE CURRENTLY DOING RIGHT NOW.
SO THERE'S NOT A FLUCTUATION IN TERMS OF THE SAVINGS AND MR GOBLE STARTED THE QUESTION, I'M NOT GONNA FINISH THE ANSWER, BUT I THINK IT'S A POLICY QUESTION AT SOME POINT.
UM, IF THERE ARE SAVINGS REALIZED, THEN I THINK THE COUNCIL CAN MAKE A DECISION ON DO WE USE THOSE SAVINGS TO, UM, REDUCE THE AMOUNT OF RE UH, WATER RATE INCREASES NEXT YEAR OR DO WE GET TO THAT IDEAL RESERVE LINE FASTER AND, AND IT COULD BE ONE THE OTHER OR A COMBINATION OF BOTH.
UM, AS STAFF WE'D PROBABLY RECOMMEND A COMBINATION OF BOTH, BUT WE, WE'D HAVE TO ANALYZE THAT FOR COUNCIL TO GIVE YOU A FULL RECOMMENDATION.
DID THAT IS YOUR QUESTION MA'AM? SORRY TO HAVE.
NEVER BE AFRAID TO COME UP HERE.
GOOD AFTERNOON MR MAYOR, COUNCIL MEMBERS AND STAFF.
UH, MY NAME IS EDWARD RODAN AND I DO HAVE A FEW QUESTIONS AND COMMENTS.
AND BY THE WAY, MR EPPERSON, I'D LIKE TO THANK YOU FOR YOUR PRESENTATION.
IT ANSWERED A COUPLE OF MY QUESTIONS ALREADY, BUT HERE ARE MY CONCERNS AND I'M SURE THESE ARE CONCERNS OF OTHER CITIZENS.
UH, WHEN I LOOK AT MY, UH, TAX BILL THAT I BROUGHT A COPY OF IN ADDITION TO MY NORMAL PROPERTY TAX, I HAVE SEVERAL OTHER FEES THAT HAVE OCCURRED OVER THE YEARS.
AND THIS WOULD BE YET ANOTHER FEE THAT APPEARS ON MY PROPERTY TAX BILL.
AND SO MY MAIN CONCERN OR BIGGEST CONCERN IS THAT WITH THIS BEING ADDED TO THE ANNUAL PROPERTY TAX BILL, UM, MANY PEOPLE WILL FORGET TO BUDGET THIS IN AND WE'LL FACE A VERY BIG SURPRISE WHEN THEY GET THEIR PROPERTY TAX BILL.
AND ON MY PROPERTY TAX BILL, IT'S ABOUT $2,800 A YEAR, UH, EVERY TWO MONTHS, MY SEWER BILLS ABOUT 134.
SO IF I MULTIPLY THAT BY SIX MONTHS, THAT'S AN $800 BILL ADDED TO MY PROPERTY TAX.
[01:10:01]
NOW UP TO $3,588 AND GRAND AND WE PAY THAT APRIL AND DECEMBER.SO I'M LOOKING AT GOING FROM 1392 TO 1794.
AND IN A PERFECT WORLD, YOU'RE CORRECT.
WE SHOULD ALL PLAN AHEAD AND SAVE FOR THAT AND HAVE THAT ALLOCATED.
BUT I WILL SHARE WITH YOU A REAL EXAMPLE WHICH ONE OF THE OTHER SPEAKERS BROUGHT UP, WHICH IS, UM, A FEW YEARS AGO WHEN THE CITY TRANSITIONED TO FANDOM, THERE WAS ABOUT A YEAR'S TIME WHEN I DID NOT GET A BILL FROM THE CITY OR PHANTOM, BUT I KNEW I WAS USING MY SEWAGE, SO I NEEDED TO PAY A BILL.
SO I CAME DOWN TO THE CITY HALL AND I PAID MY BILL EVERY TWO MONTHS.
AND THEN WHEN PHANTOM FINALLY CAME ON BOARD, I CONTACTED THEM TO MAKE SURE THEY HAD ALL THEIR RECORDS CORRECTLY AND THEY DID HAVE TO DO SOME ADJUSTMENTS.
BUT THE INTERESTING COMMENT THAT THE REPRESENTATIVE HAS MADE WAS, WELL, YOU'RE ONE OF THE FEW PEOPLE THAT KEPT PAYING YOUR BILL.
AND JUST KIND OF ASSUME THAT IF THEY WEREN'T GETTING A BILL, THEY DIDN'T HAVE TO PAY IT.
I KNOW, BUT IT, I THINK IT HIGHLIGHTS THE POINT THAT PEOPLE AREN'T GOING TO PLAN AHEAD.
AND THIS IS JUST ANOTHER BIG BURDEN.
AND ALTHOUGH THIS MAY BE A TOPIC FOR THE COUNTY BOARD OF SUPERVISORS, THE COUNTY TAX ASSESSOR, IF THIS IS GOING TO CONTINUE TO HAPPEN, I WOULD HOPE THEY WOULD LOOK AT MAYBE SETTING UP OUR TAX PAYMENTS ON A QUARTERLY OR MONTHLY BASIS BECAUSE TWICE A YEAR IT'S GOING TO GET REAL EXPENSIVE.
AND SO, UM, I'M GOING TO REVERT BACK TO SOME OF MY QUESTIONS, WHICH WERE WHEN I LOOKED AT THE THREE OPTIONS, UM, I WAS CURIOUS, IT SAID THAT OF THE OTHER MULTIPLE BILLING SERVICE PROVIDERS, UH, THAT WOULD BE ABOUT 824,000 ANNUALLY.
I WAS CURIOUS WHO THOSE OTHER PROVIDERS WERE AND DID THIS CITY GO OUT TO RFP OR REQUEST FOR PROPOSAL EITHER TO THE CITY'S COMMERCIAL BANK THAT YOU USE FOR YOUR BANKING SERVICES OR TO OTHER FINANCIAL INSTITUTIONS? BECAUSE I USED TO WORK FOR A MAJOR BANK AND I KNOW IN OUR COMPANY WE HAD A GOVERNMENT SERVICES DIVISION SPECIFICALLY TO SERVE GOVERNMENT AGENCIES LIKE YOURS.
AND ONE OF THE SERVICES THEY PROVIDED WAS BILL PAYMENT OPTION.
EVERYTHING FROM LOCKBOX, IF YOU WANTED TO MAIL OUT THE BILL, THEY COLLECT IT, THEY PROCESS IT TO THEM DOING EVERYTHING FOR YOU.
AND MAYBE THAT NUMBER, UH, THAT'S IN HERE SAYING THAT THE, UH, THE SERVICES WITH A SERVICE PROVIDER, THE 824 IS THE LOWEST NUMBER.
BUT I WOULD LIKE TO KNOW IF YOU COULD SHARE WITH US IN YOUR DUE DILIGENCE WHO YOU WENT OUT TO RFP TO AND WHAT WAS THE BEST NUMBER YOU GOT FROM THE MAJOR FINANCIAL INSTITUTIONS.
UM, THE OTHER QUESTION I HAD WAS WITH THE POTENTIAL SAVINGS AND IT'S BEEN KIND OF ADDRESSED.
I SAW WHERE IF WE TOOK FROM THE VENDOR AND THEN THE BEST CASE SCENARIO WITH THE COUNTY WILL CHARGE WAS A SAVINGS.
I'M GOING OFF OF THIS SHEET BY THE WAY, A 471,000 ANNUALLY.
AND IF WE TOOK THE VERY BEST SCENARIO OF THE COUNTY VERSUS WHAT IT WOULD COST THE CITY TO PROCESS IN HOUSE, IT'S OVER $500,000 A YEAR.
AND IT KIND OF BEGS BACK TO ST QUESTION.
AND I SAW ON ONE OF THE SLIDES THAT AFTER THE FIRST YEAR IT'S GOING TO CONTINUE TO IMPROVE.
I WOULD LIKE TO JUST KNOW WHAT OTHERS ARE INQUIRING IS WHERE DOES THAT SAVINGS GO? DOES IT GO INTO A RESERVE TO REPAIR THOSE FAILING PIPES THAT WE NEED TO REPAIR WHEN WE GET THAT BACK AS PAYING CUSTOMERS? OR COULD YOU COMMIT TO US THAT YOU'RE GOING TO HOLD THE LINE ON THE SEWER FEES IF WE'RE GOING TO SEE A SUBSTANTIAL SAVINGS, WE MAY NOT SEE OUR BILL GO UP FOR THE NEXT THREE OR FIVE YEARS.
SO THOSE ARE SOME OF MY QUESTIONS.
AND UM, YOU KNOW, I, I SEE WHERE IT COULD BE A BIG SAVINGS WITH ACCOUNTING, NOT HAVING TO PAY FOR POSTAGE AND MAILING OUT STATEMENTS, BUT I DO GET A LITTLE CONCERNED THAT WE MAY NOT GET, BUT ONCE A YEAR AN ANNUAL STATEMENT THAT SAYS THIS IS WHAT YOU USE.
SO THOSE ARE MY QUESTIONS AND COMMENTS AND APPRECIATE THAT.
YOU KNOW, I BROUGHT UP THE SAME THING LAST TIME WE MET ABOUT THIS, WHEREAS I GUESS ABOUT 70% OF THE PEOPLE WHO HAVE MORTGAGES USE AN IMPOUND ACCOUNT, IT PROBABLY WON'T AFFECT THEM GREATLY, RIGHT? I MEAN, I'M GUESSING THAT THAT OTHER 30% WILL CHOKE A LITTLE BIT AT THAT EXTRA 300 TO $800 THAT THEY HAVE TO COME UP WITH ALL AT THE SAME TIME.
AND IT ALWAYS SEEMS TO BE THE WAY OF IT.
SO THAT THAT IS A REAL CONSIDERATION AND I APPRECIATE YOU BRINGING IT UP.
AS FOR THE OTHER QUESTIONS, GRANTED, YOU WANT TO ADDRESS ANY OF THAT? I'D ACTUALLY BRING THIS TO EPPERSON BACKUP TO ANSWER HOW WE CAME UP WITH THE CONSULTING COSTS.
THANKS FOR, THANK YOU FOR YOUR TIME, MR EPPS.
AND WE'LL ANSWER YOUR QUESTION AND THEN WE'LL MOVE ON.
THE OTHER COSTS WE DERIVE BY, UH, REACHING OUT TO OTHER PEOPLE, OTHER VENDORS IN THE COMMUNITY, UM, IN, IN THAT COMMUNITY WHO OFFER THESE SERVICES.
AND I GOTTA TELL YOU, BECAUSE WE'RE THE ONLY AGENCY IN SAN DIEGO COUNTY
[01:15:02]
WHO BILLS THIS WAY, EVERYBODY ELSE HAS IN HOUSE WATER BILLS THAT GO OUT AND THEY PUT THEIR SEWER ON THAT WATER BILL OR THEY'RE ALREADY ON THE PROPERTY TAX ROLL.SO WE'RE ASKING FOR A UNIQUE SERVICE IN A, IN A SERVICE AREA THAT DOESN'T, THERE'S NOT A LOT OF OPTIONS OUT THERE.
AND SO IN SAN DIEGO COUNTY, WE DON'T KNOW OF ANY OPTIONS FOR RFP ON THIS.
SO HOW WE GOT THE COST AS WE REACHED OUT NATIONWIDE TO LOTS OF PEOPLE AND THE COSTS WERE COMING IN CONSIDERABLY HIGHER.
WE HAD TO PUT TOGETHER ALL THE SERVICES THAT FATHOM OFFERED BEFORE BECAUSE THERE IS NO ONE-STOP-SHOP, UM, READILY AVAILABLE OUT THERE.
SO, UH, WE CAME UP WITH THE COSTS AND WE THINK WE, WE THINK WE'RE, WE'RE PRETTY CLOSE ON THE COST, BUT W WE'RE ACTUALLY, IF ANYTHING LOW ON THE CONSULTANT COSTS AND THE IN HOUSE COSTS, BUT, UH, WE'RE, WE ARE TRYING NOT TO SH, YOU KNOW, OVER-EXAGGERATE THE ISSUE.
UM, WE'RE TRYING TO SHOW WHAT HONESTLY WE CAN, WE CAN TRY AND DO THIS FOR US SO WE'RE OPTIMISTIC.
BUT AGAIN, UM, W WE'LL FIGURE THAT OUT AS WE MOVE FORWARD.
WOULD YOU PULL THAT MICROPHONE DOWN? THANK YOU.
UM, JOE, DURING MORELAND, I LIVE ON THE VALLEY FLOOR ON WASHINGTON AVENUE AND UM, I, I REALLY APPRECIATE THE WAY THE STAFF, CITY STAFF AND THE COUNCIL HAS DISCUSSED THIS THIS AFTERNOON.
BUT THE ONE THING I WAS WONDERING WAS WHETHER THE CITY HAS INVESTIGATED HOW THIS DATA HANDLES ITS BILLING WITH THE COUNTY.
UH, BECAUSE THEY ACTUALLY HAVE A TWO STEP PROCESS THAT THEY USE AND HEARING OTHERS HERE DISCUSS HAVING A BIG BILL ALL AT ONCE OR SOMETHING, THEY ACTUALLY HAVE AN OPTION FOR THEIR CITIZENS.
I TALKED YESTERDAY TO BARB COLI, SENIOR ACCOUNT CLERK FOR THE CITY OF VISTA AND WHAT SHE TOLD ME WAS, AND BY THE WAY, CITY, THEY'RE HAPPY WITH THEIR SYSTEM.
THEY'VE GOT UP THERE, SHE SAID THAT VISTA DOES THE SEWER BILLING, BUT IT CAN TRANSFER THE UNPAID SEWER BILLS TO THE COUNTY FOR PLACEMENT ON THE FALL PROPERTY TAXES.
NOW, I HAVEN'T HEARD THAT OPTION HERE YET.
I DIDN'T KNOW IF WE WERE, HADN'T INVESTIGATED THAT.
SHE SAID THAT WAY VISTA RESIDENTS CAN PREPAY OR LET THEIR SEWER BILLS GO TO THE COUNTY FOR PAYMENT THROUGH TAXES.
IT GIVES THEM AN OPTION AND IF YOU'RE USED TO PAYING YOUR BILL AND YOU INCLUDE YOUR SUR SEWER BILL SIX TIMES A YEAR, THEN YOU'RE SORT OF USED TO THAT.
IF YOU'RE SUDDENLY FACED WITH A PROPERTY TAX BILL THAT SAYS TWICE WHAT YOU WOULD NORMALLY EXPECT FOR SOMETHING LIKE SEWARD SEEMS TO, THAT'S A WHOLE DIFFERENT KIND OF THING.
AND IT IS DIFFICULT OFTEN, ESPECIALLY ON THE VALLEY FLOOR WHERE WE HAVE OUR OLDER LITTLE OR HOMES USUALLY FOR PEOPLE TO KIND OF TRY TO SAVE UP FOR THAT PROPERTY TAX BILL.
SO I'M JUST SAYING THIS MIGHT, UH, SHE'S HAD, UM, CABLE SAID THAT UM, THIS, UH, RESIDENTS AREN'T CHARGED ANYTHING EXTRA FOR THAT PROCESS AND MOST OF THEIR RESIDENTS, UH, EVEN SO LIKE HAVING IT DONE THROUGH PROPERTY TAXES.
BUT I THINK IF ALCOHOL MAYBE WANTS TO GIVE ITS PEOPLE A LITTLE MORE OPTION THERE THAT MAYBE THIS IS SOMETHING TO LOOK INTO.
JUST A THOUGHT AND I APPRECIATE AND SYMPATHIZE AGAIN WITH ALL OF THE PEOPLE HERE TALKING TODAY ABOUT THIS.
HOW DID YOU FIGURE THAT OUT? I'M SORRY.
HOW DID YOU FIGURE THAT OUT? HOW'D YOU THAT, WHAT'S HAPPENING UP IN VISTA? WELL, THE CITY OF EL CAHONE WAS KIND ENOUGH AND THEIR NOTICE TO US TO TELL US WHICH OTHER CITIES WERE USING THE COUNTY PROPERTY TAX SYSTEM AND VISTAS ON THAT LIST.
AND I JUST STARTED CALLING THE OTHER CITIES AND I TALKED TO VISTA AND LA MESA, WHICH HAS NOT BEEN ON IT AS LONG VISTA HAS USED THEIR SYSTEMS SINCE I THINK 2012 I BELIEVE.
AND SO I JUST MADE THE PHONE CALLS.
I THINK WE SHOULD DEFINITELY LOOK INTO THAT.
COULD YOU DROP YOUR RESUME OFF ON THE WAY OUT? WOULD YOU LIKE THE PHONE NUMBER? WELL WE'RE GOING TO GO, THIS IS GOING TO BE OUR, OUR NEW SEWER COLLECTION SYSTEM RIGHT HERE.
THAT'S ACTUALLY A REALLY GOOD IDEA.
[01:20:01]
COUNCIL MEMBERS, STAFF.I JUST WANTED TO, UH, GIVE MY APPRECIATION FOR ALL THE WORK THAT STAFF HAS DONE IN THE RESEARCH FOR FINDING OUT THE BEST WAY FOR US TO GO FORWARD.
I THINK THEY'VE COME UP WITH THE BEST PLAN.
I'VE BEEN IN FLETCHER HILLS FOR 37 YEARS AND UM, I KNOW THAT I WILL APPRECIATE HAVING IT ON MY TAX BILL AND NOT HAVE TO DEAL WITH IT EVERY TWO MONTHS.
JUST OUT OF CURIOSITY, DO YOU HAVE AN IMPOUND ACCOUNT? NO, I DON'T.
OKAY, SO YOU JUST WRITE A CHECK TWICE A YEAR AND YES.
JUST PLAN FOR IT AND UH,
RINALDI
AND WHO SAYS 16 MILLION IS THE NUMBER TO GET TO AND HOW MANY CITIES ARE AT THE 16 MILLION MARK FOR THE AVERAGE.
AND UM, HOW MANY MILES ARE WE DOING A YEAR NOW OF REPLACING THE SEWER BECAUSE HE SAID THAT WE CAN DO AN EXTRA MILE AND A HALF WITH THE SAVINGS.
SO WHERE ARE YOU, WHAT YOU GUYS BE WILLING TO GUARANTEE THAT WE COULD DO AN EXTRA MILE AND A HALF FROM WHAT OUR AVERAGES NOW AND UM, I JUST HAVE A COUPLE OF OTHER QUESTIONS.
LIKE YOU WOULD SAY THE LIENS WOULD BE LOWERED.
IS THAT BECAUSE YOU GUYS HAVE THE RENTERS THAT WOULD BE LEAVING THAT LEAVE AND NOT PAY THEIR BILL? NOW YOU'RE PUTTING THAT ON THE HOMEOWNER OR THE LANDLORD? I THINK IT'S BECAUSE PEOPLE HAVE A TENDENCY TO PAY THEIR PROPERTY TAXES TO PROTECT THEIR INVESTMENT RATHER THAN, SOMETIMES PEOPLE DON'T PAY OTHER BILLS FOR BECAUSE THEY CAN'T AFFORD IT OR THEY DON'T WANT TO.
AND THEN ALSO, UM, EVERYBODY'S TALKING ABOUT, UH, MAKING HOMES MORE AFFORDABLE.
HOW MUCH MORE DOES SOMEBODY HAVE TO MAKE CAUSE QUALIFYING FOR A HOME? TAXES ARE PART OF THE LENDERS, UH, LOOKING AT YOU FOR QUALIFYING FOR A HOME.
HOW MUCH MORE WOULD SOMEBODY HAVE TO MAKE TO QUALIFY FOR AN AVERAGE HOME IN SAN DIEGO? HOW MANY PEOPLE ARE GOING TO FALL OUT OF ESCROW THAT ARE IN ESCROW NOW BECAUSE THEY'RE JUST MAKING THEIR RATIOS AND THEN THEY'RE GOING TO FALL OUT OF ESCO.
SO THOSE ARE, THOSE ARE MY CONCERNS.
I ALSO BROUGHT UP THAT, THAT QUESTION ABOUT, UH, QUALIFYING FOR HAIM IN ESCROW ON A HOME MYSELF RIGHT NOW.
SO THEY'RE LOOKING AT EVERY DOLLAR, RIGHT? AND, AND SO, UM, I THINK THE ANSWER IS, IS PROBABLY UNLIKELY THAT, THAT IT WOULD AFFECT MANY PEOPLE.
IT'S SUCH A SMALL NUMBER, BUT IT DOES MAKE, IT DOES CHANGE THINGS A LITTLE BIT.
SOMETHING THAT TO CONSIDER IN THE PROCESS FOR SURE.
UM, AND THEN, UH, WE HAVE AN EXPERT HERE.
I EXPERT REAL ESTATE AND TAXATION.
SO, SO I, UH, I WORKED FOR THE ASSESSOR FOR 34 YEARS HANDLING TAX BILLS AND MBA IN REAL ESTATE AND TAUGHT REAL ESTATE AND FINANCE, DENNIS SOUTHWESTERN COLLEGE.
SO I HAVE SOME KNOWLEDGE OF THIS, BUT I'VE NEVER BEEN ALONE UNDERWRITER.
SO I CALLED, UH, THREE MORTGAGE BROKERS THAT I KNOW AND THEY SAID, WHEN YOU BUY A HOME HERE IN EAST COUNTY, THEY USE 1.25% OF THE SALES PRICE FOR YOUR, UH, TAX BOOK.
IF YOU WERE TO CALL THE ASSESSOR, THEY'RE NEVER GOING TO TELL YOU WHAT YOUR TAX BILL IS BECAUSE OF ALL THE BONDED INDEBTEDNESS AND EVERYTHING.
SO IN AN OVERWHELMING NUMBER OF CASES, I NEVER, I LEARNED TO NEVER SAY ALWAYS, BUT AN OVERWHELMING NUMBER OF CASES, IT WOULD NOT AFFECT QUALIFYING FOR A LOAN.
NOW, IF YOU'RE GOING TO REFINANCE THEN THAT THE DANIEL USED THE ACTUAL TAX BILL, BUT I THINK PEOPLE THAT REFINANCE ARE NOT CUTTING IT QUITE SO CLOSE BECAUSE THERE'S BEEN A HUGE INCREASE IN THE REAL ESTATE MARKET, YOU KNOW, IN THE LAST FEW YEARS.
SO I HOPE THAT ANSWERS YOUR QUESTION ON THAT ISSUE.
I THINK THERE ARE A COUPLE OF QUESTIONS THAT MAYBE A GRAHAM CAN ANSWER.
SURELY I'D ACTUALLY INVITE MR EPPERSON BACKUP TO TALK ABOUT, UM, HOW DO WE COME UP WITH THE, THE IDEAL AMOUNT THAT WE SHOULD HAVE IN RESERVES AND HOW MUCH DO WE
[01:25:01]
ON AVERAGE REPLACE AND PIPE ANNUALLY IF YOU, UH, YEAH, IF YOU'D BE WILLING TO SIT DOWN AND MISREPRESENT WHY ANSWER THE REST OFI SHOULD JUST GET A WIRELESS MIKE.
UM, IT ACTUALLY, I HAVE ONE HERE IF YOU'D LIKE FROM BEHIND THE CURTAIN.
UM, I, AS FAR AS THE 16 MILLION OR AVERAGE THERE THAT THE GENTLEMAN SAW ON THE RESERVE TARGET, THAT'S ACTUALLY AN INDUSTRY STANDARD.
AND FOR EACH CITY IT'S, IT'S DEPENDS ON THEIR OBLIGATIONS.
SO WE HAVE AN SRF LOAN CURRENTLY AND OUR RESERVES HAVE TO AT LEAST MEET THE MINIMUM RESERVES THAT THE SRF LOAN REQUIRES.
SO THAT WAS WHAT WE SET OUR MINIMAL RESERVES THAT, UH, SO THAT WE COULD MEET OUR LOAN OBLIGATIONS.
BUT ON TOP OF THAT, IT IS INDUSTRY STANDARD TO ALSO HAVE METRO RESERVES, UH, TO PAY FOR METRO COSTS, OPERATIONAL RESERVES, EXPANSION SLASH REPLACEMENT RESERVES, WHICH HAS ALSO AN EMERGENCY AND NATURAL DISASTER RESERVES.
SO THAT'S HOW WE ARRIVE AT THAT NUMBER.
SO A LARGER CITY WOULD HAVE LARGE RESERVES.
A SMALLER CITY, YOU HAD SMALLER RESERVES, RIGHT.
AND IF IT'S THEIRS, BUT A SMALLER CITY WITH LOTS OF LOANS MIGHT HAVE THE NEED FOR A HIGHER RESERVE.
SO JUST TO PUT THAT IN PERSPECTIVE, IT MAKES SENSE.
THE OTHER QUESTION ABOUT, UM, HOW MUCH PIPE DO WE REHAB PER YEAR? CURRENTLY IT'S 2.4 MILES A YEAR IS WHAT WE'RE ON.
WHEN WE REPLACED THE, UH, SEWER LINE AT JOHNSON AVENUE, THAT WAS WHAT, 10 MILLION OR BETTER? IT WAS.
SO THAT HAPPENS FROM TIME TO TIME.
AND THAT WAS BECAUSE OF A LEAKAGE IN PRIOR YEARS.
AND THAT'S HOW WE INCURRED THE, THE, UH, SRF LOAN OR THE STATE REVOLVING FUND LOAN THAT WE CURRENTLY HAVE THAT WE HAVE TO MAINTAIN THE MINIMUM RESERVES FOR.
THOSE ARE THE THINGS THAT CAN HAPPEN.
IT'S JUST LIKE A, WHEN YOUR CAR TRANSMISSION BREAKS DOWN ON YOUR CAR OR YOUR ENGINE BLOWS OR SOMETHING LIKE THAT, YOU HAVE TO HAVE A WAY OF DOING IT.
AND THAT'S A LOT OF PEOPLE USE THEIR CREDIT CARDS IN.
WELL THIS IS LIKE A CREDIT CARD FOR US.
AND FOR BOTH THOSE PHASES IS ACTUALLY 15 MILLION.
STEVE HEARS MR REPRESENT WHILE YOU'RE THERE, DON'T GO TOO FAR.
SO TODAY WHEN SOMEBODY DOESN'T PAY THEIR BILL FOR A CERTAIN NUMBER OF TIME, THE COUNCIL VOTES TO PUT A LIEN, DOES THAT GO ON THEIR PROPERTY OR DOES THAT GO IN THEIR TAX BILL? EXCELLENT.
UM, SO INITIALLY EVERY THREE MONTHS WE LEAN THOSE WHO MEET A CERTAIN THRESHOLD.
THERE'S A CERTAIN DOLLAR AMOUNT, LIKE IF YOU WERE DELINQUENT ON A DOLLAR, I THINK THE CITY COUNCIL HAS SET A THRESHOLD THAT SAYS THAT ANYTHING OVER A CERTAIN AMOUNT IT WILL GO AND A CERTAIN NUMBER OF DAYS LATE, IT GOES ON TO A LIEN.
SO LIEN AGAINST THE PROPERTY AND IF NOT PAID OFF AFTER A CERTAIN TIME ANNUALLY IT GOES TO THE PROPERTY TAX BILL TO BE COLLECTED.
SO IF THOSE LIENS ACCUMULATE, THEN THEY GO TO THE PROPERTY TAX BILL.
SO IF WE SWITCH TO A TAX BILL METHOD, UH, IT'S NOT REALLY MUCH DIFFERENT THAN TODAY IS WHAT YOU'RE SAYING.
IN OTHER WORDS, IF YOU DON'T PAY TODAY, IT GOES ON YOUR TAX BILL.
IF YOU DON'T PAY YOUR TAX BILL, IN EITHER CASE YOU COULD BE SUBJECT TO A TAX LIEN SALE AFTER SO MANY YEARS, THE COUNTY DETERMINES FOUR OR FIVE YEARS OR SOMETHING LIKE THAT.
AND TODAY IF YOUR TENANT DOESN'T PAY, ULTIMATELY ENDS UP A LIEN ON THE PROPERTY.
DO WE RECORD THOSE LIENS? WE DO.
SO WHEN YOU, SOMEONE RUNS A CREDIT REPORT AND THEY LOOK AT YOUR CREDIT PORT, IT SHOWS THE RECORDED LIENS.
NOW THIS IS DIFFERENT THAN HAVING IT BE ON OUR PROPERTY TAX BILL CAUSE THAT'S A, YOU KNOW, THAT'S AN OVERALL LIEN ON YOUR PROPERTY.
SO THAT'S WHY IT'S A GOOD THING TO PAY YOUR SEWER BILL.
SO WHEN YOUR CREDIT OR LOOKS AT YOUR CREDIT REPORT SAYS LEAN, LEAN, LEAN, LEAN, THEY'RE NOT GOING TO LIKE THAT.
UH, AND THEN I HAD ANOTHER COMMENT ABOUT THE UH, RESERVES.
IF SOMETHING HAPPENS LIKE HAPPENED ON JOHNSON AVENUE, WE HAD SEWERAGE COMING OUT OF THE MANHOLE COVERS OR ON WASHINGTON OR SOMEWHERE IN FLETCHER HILLS AND SOME OF THE OLDER NEIGHBORHOODS, AND YOU CALL US, WE'RE GONNA FIX IT, BUT WE GOT TO AT MY COST IS $5 MILLION.
BUT YOU KNOW, WE CAN'T HAVE SEWAGE BACKING UP INTO PEOPLE'S HOUSES, WHICH, WHICH HAS HAPPENED BEFORE.
[01:30:01]
IT'S REALLY IMPORTANT.YOU DON'T, THAT'S ONE AREA WHERE YOU DON'T WANT TO MAKE A MISTAKE IF A SPRINKLER STARTS SPRAYING OUT, THAT'S SOMETHING DIFFERENT.
THAT DOESN'T CAUSE A HEALTH ISSUE.
BUT WHEN YOU'VE GOT SEWAGE, RAW SEWAGE COMING OUT OF HOUSES OR BUSINESSES, THAT'S A REALLY, REALLY BAD THING.
SO THAT'S WHY THE RESERVES ARE JUST THERE.
ALSO FOR EMERGENCIES IN CASE SOMETHING HAPPENS BECAUSE WE NEVER KNOW WHEN A PIPE IS GOING TO BLOW OR IF THERE'S A SMALL EARTHQUAKE.
AND SOME PIPE CRACKS AND YOU GOT SEWAGE ALL OVER THE PLACE OR YOU FLUSH YOUR TOILET AND ALONG SOME STREET AND ALSO AS A SEWAGE IS POURING OUT OF THE HOUSE, YOU KNOW, THAT CAN CAUSE A LOT OF DAMAGE.
I DIDN'T SEE IT IN THE STAFF REPORT.
HOW IS STAFF RECOMMENDING THAT LANDLORD LEASES BE HANDLED? IF WE SWITCHED TO A TAX ROLL? SOME LEASES MAY NOT CURRENTLY, UH, ALLOW THAT, UH, KIND OF PASS THROUGH.
AND THE SECOND ONE IS, UH, IS IT YOUR OPINION THAT A SEPARATE SEWER CHARGE IS NOT PART OF THE RENT CONTROL CAP? TWO QUESTIONS.
UM, I WANT WANNA MAKE SURE THAT I GET THIS PRECISE AND WE, WE'VE DEFINITELY REACHED OUT TO SEVERAL EXPERTS OUT THERE.
AND SO I WANT TO MAKE SURE THAT, UM, I GET EXACTLY WHAT YOU'RE LOOKING FOR.
SO ACCORDING TO THE CALIFORNIA ASSOCIATION OF REALTORS, UM, THEY HAVE A STANDARD RENTAL AGREEMENT OR LEASE FORM THAT GOES OUT THAT A LOT OF PEOPLE, NOW THIS ISN'T MANDATORY, THAT EVERYBODY USES IT, BUT IT'S KIND OF THE INDUSTRY STANDARD.
AND IN THIS, UH, PER AB 14, 82, UM, CAT RENT, RENT CAP IS ON ITEMS DEFINED AS RENT.
AND SO UTILITIES IS A DIFFERENT DIFF, DIFFERENT DEFINITION WITHIN THE STANDARD AGREEMENT.
AND SO CURRENTLY LANDLORDS HAVE IN THERE THAT TENANT PAYS X, Y AND Z.
UTILITY TENANT PAYS FOR UTILITIES.
SO IF YOUR TENANT CURRENTLY PAYS FOR SEWER, THEY PAY FOR SEWER.
UM, THEY WOULD BUT IT DOESN'T OUTLINE WHO THEY PAY.
AND SO THE TENANT WOULD INSTEAD OF PAYING THE CITY WOULD HAVE TO PAY THE PROPERTY OWNER ON A SEPARATE UTILITY BILL.
DOES THAT ANSWER YOUR QUESTION? YEAH, I THINK WHAT YOU'RE SAYING IT IS, UH, IF SEWER GETS ROLLED INTO PROPERTY TAX AND THE LANDLORD SAYS, HEY, UM, I NEED TO GET THE PROPERTY TAX BACK SOMEHOW.
UH, RENT PROBABLY INCLUDES THE PROPERTY TAX PORTION BUT MAY NOT INCLUDE THE SEWER PORTION ON THE PROPERTY TAX SALE.
CAUSE THAT'S A SEPARATE UTILITY.
IS THAT WHAT I'M HEARING? IT IS SEPARATE AND THEY WOULD PAY FOR SEPARATELY.
AND THAT'S WHY ON THE SUMMARY REPORT OF CHARGES THAT WE WILL SEND OUT TO ALL PROPERTY OWNERS EVERY YEAR.
UM, THAT'S WHY WE WILL PUT IN THERE, UH, THE COST OF THE SEWAGE SO THEY CAN USE THAT TO SHOW THEIR, THEIR TENANT.
AND UH, OUR, OUR FINANCE DIRECTOR ALSO SAID, MADE A STATEMENT THAT WE CAN, YOU ALSO HAVE THE OPTION TO PAY YOUR PROPERTY TAXES EVERY OTHER MONTH IF YOU WANT TO AS WELL.
SO THAT IS AN OPTION OUT THERE FOR THOSE WHO ARE WORRIED ABOUT PAYING TWICE A YEAR.
YOU CAN PAY EVERY OTHER MONTH.
IF YOU WANT TO JUST MAIL THEM A CHECK, THEY'LL ADD IT TO YOUR COUNT.
I THINK IT'S SAFE TO LET YOU SIT DOWN FOR A MINUTE.
THE NEXT ONE IS RICHARD THE SCULLY.
THANK YOU FOR HAVING ME AND THANK YOU FOR THE OPPORTUNITY TO TESTIFY IN PUBLIC COMMENT.
UM, I'D LIKE TO SAY I AM CONCERNED WHEN COUNCIL MEMBERS EXPRESSED SUPPORT FOR AN ISSUE PRIOR TO THE PUBLIC MAKING COMMENTS.
IT'S VERY IMPORTANT THAT YOU HEAR THE PUBLIC COMMENTS OR YOU CAN MAKE A THOUGHTFUL DECISION.
UM, I'M WITH THE PACIFIC SOUTHWEST ASSOCIATION REALTORS ON BROADWAY IN EL CAHONE.
WE'VE BEEN IN EL CAHONE SINCE THE 1950S.
I'M REPRESENTING REALTORS RIGHT NOW.
WE REPRESENT 3000 REALTORS IN THE COUNTY, UM, SELLING HOMES IN, IN EL CAHONE.
AND REALLY THE REASON WE'RE HERE IS BECAUSE WE ARE THE PROTECTORS OF PRIVATE PROPERTY.
AND WE REALLY BELIEVE IN HOME OWNERSHIP AND UM,
[01:35:01]
THERE SOME CONCERNS ABOUT THIS ISSUE THAT I'D LIKE TO EXPRESS YOUR UM, ON THE STAFF, UH, REPORT.I THINK THERE'S SOME INACCURACIES IN IT.
I'VE ONLY WORKED WITH ONE OTHER ONE OTHER CITY BEFORE ON THIS ISSUE.
IT WAS THE CITY OF CHULA VISTA.
CHULA VISTA DOES ITS WATER BILLING THROUGH SWEETWATER AND OTI AND THE CITY OF CHULA VISTA DOES DO IT'S SEWER BILLING.
AND I KNOW THAT BECAUSE THEY BROUGHT THIS ISSUE UP ABOUT FOUR YEARS AGO AND WE MET WITH THEIR DIRECTOR OF FINANCE AND EXPLAIN, UM, HOW DETRIMENTAL IT IS TO PEOPLE BUYING HOMES TO ADD FINANCING TO THE SEWER BILL.
AND, UM, I HAD THE OPPORTUNITY TO SPEAK WITH COUNCIL MEMBER KENDRICK PRIOR TO THE MEETING AND I WENT TO DOUBLE CHECK SOME OF OUR FACTS.
THIS ISSUE WENT THROUGH THREE DIFFERENT COMMITTEES THAT WE HAVE IN OUR BOARD OF DIRECTORS.
AND WHEN YOU GO TO BUY A HOUSE, YOU, WHEN YOU GO TO FINANCE THE PROPERTY, THEY LOOK AT YOUR INCOME AND THEY LOOK AT YOUR EXPENSES.
SEWER BILLS DON'T SHOW UP ON THAT LEDGER ON THE EXPENSE SIDE, BUT, BUT TAX BILLS DO SHOW UP AND THEY DON'T USE A STANDARD.
THEY DON'T USE A STANDARD 1.25 OR 1.1%.
AND PART OF THAT IS BECAUSE MANY CITIES AND MUNICIPALITIES AND DIFFERENT GOVERNMENTS TODAY HAVE BEEN ADDING BONDS AND DIFFERENT THINGS OVER THE YEARS THAT THESE ARE GROWING AND THEY'RE VERY DIFFERENT IN DIFFERENT CITIES.
AND IN ADDITION, THEY HAVE PACE LOANS.
YOU KNOW, WHERE PEOPLE ARE FINANCING SOLAR EQUIPMENT.
SO THEY ACTUALLY LOOK AT THE TAX BILL.
UM, YOU KNOW, WHEN THEY GO TO FINANCE A HOUSE.
SO WHAT CHANGES IS HOW YOU QUALIFY TO BUY THE HOUSE.
YOU NEED A 2% HIGHER INCOME IN ORDER TO BUY A HOUSE WITH THIS SEWER BILL ON IT.
AND THAT, THAT DOESN'T SOUND LIKE A LOT.
IT COULD BE, IT COULD BE SMALL, BUT IF YOU WERE THAT FAMILY WHO WASN'T ABLE TO PURCHASE A HOME BECAUSE YOU DIDN'T MEET THAT THRESHOLD OR YOU HAD TO PAY A HIGHER INTEREST RATE IN ORDER TO GET THE LOAN BECAUSE YOU'RE A HIGHER RISK TO THE LENDER, IT JUST MAKES HOUSING LESS AFFORDABLE.
SO WE'RE VERY MUCH OPPOSED TO ADDING ANYTHING TO THE TAX ROLL FOR THAT REASON.
UM, WE DO THINK THERE ARE ADVANTAGES TO A CITY TO BILLING, YOU KNOW, TO DOING THEIR OWN SEWER BILLING.
UM, IT'S AN OPPORTUNITY TO ENGAGE WITH THE PUBLIC, TO GET FEEDBACK FROM A PUBLIC TO COMMUNICATE WITH THEM.
YOU KNOW, IF YOU LIVED IN THE CITY OF SAN DIEGO LAST YEAR AND THEY HAD SOME AREAS IN THE SCRIPPS RANCH AREA WHERE THE SEWER BILLS, THE, UH, THE WATER BILLS WERE DOUBLED, THEY DOUBLED THE, TURNED OUT A YEAR LATER.
YOU KNOW, THE UNION TRIBUNE DID A REPORT AND SAID, HEY, THERE WERE HUMAN ERRORS.
BUT THE FACT OF THE MATTER IS IN THOSE BILLS SHOW UP IN THE SEWER BILL, THE INCREASED SEWER BILL, YOU KNOW THE HOMEOWNER WOULD HAVE TO BE SAVVY ENOUGH TO LOOK AT THE SEWER BILL, UNDERSTAND WHAT THOSE LITTLE LINES ARE AND UNDERSTAND THAT ONE OF THOSE LITTLE LINES WAS A SEWER BILL AND NOT SOME OTHER FEE OR BOND THAT'S ROLLED UP IN THERE AND THEN FIND THE PHONE NUMBER IN ORDER TO CALL THE CITY IN ORDER TO UNDERSTAND AND DEBATE THAT AND HOW YOU NEGOTIATE BETWEEN THE COUNTY AND THE CITY WITH A BILL THAT'S SITTING ON YOUR TAX BILL.
I'M PRETTY SAVVY WITH THIS KIND OF STUFF AND I THINK I WOULD HAVE A DIFFICULT TIME.
I REALLY THINK THE CITY NEEDS TO LOOK AT THIS AS AN OPPORTUNITY TO ENGAGE WITH THE PUBLIC AND I DO THINK THERE ARE NEW INNOVATIVE, INNOVATIVE WAYS TO BILL AND TO REDUCE COSTS OF BILLING.
I RUN AN ASSOCIATION, LIKE I SAID, WITH 3000 MEMBERS DURING THE PAST FEW YEARS, WE'VE MOVED PROBABLY 75% OF OUR MEMBERS PAY EITHER THROUGH DIRECT DIRECT WITHDRAWAL FROM THEIR BANK ACCOUNTS ON AUTOPAY AND OTHERS PAY THROUGH A CREDIT CARD.
I MEAN THERE ARE DIFFERENT WAYS TO DRIVE DOWN THE COSTS OF BILLING AND NOT HAVE TO SEND OUT PAPER BILLS AND HAVE, IT JUST SEEMED VERY EXPENSIVE TO ME TO HAVE FOUR STAFF PEOPLE, UM, TO, TO DO THIS BILLING AS OPPOSED TO, UM, GOING THROUGH THE COUNTY, ESPECIALLY WHEN THE CITY'S SAYING THAT THEY'LL BE ABLE TO PROVIDE CUSTOMER SUPPORT.
SO MY THOUGHT IS IS THAT THE CUSTOMER SUPPORT IS REALLY GOING TO GO AWAY BECAUSE NO ONE'S GOING TO COMPLAIN THROUGH THE COUNTY BILLING AND YOU'RE NOT GOING TO NEED THE, THAT HEADCOUNT IN THE CITY STAFF.
I THINK YOU NEED THE CITY STAFF WHEN YOU'RE GOING TO PROVIDE A SUPPORT TO YOUR CONSUMERS AND IT'S BETTER TO GET IT RIGHT AND SPEND A FEW DOLLARS AND HAVE, HAVE SOMEONE BE TREATED FAIRLY BY THEIR CITY THEN TO KIND OF BURY IT.
AND WITH PRICES INCREASING FOR SEWER, YOU KNOW, 10 TO 15%.
THAT'S WHY THE WATER COMPANY DOESN'T WANT TO DO IT.
THEY DON'T WANT TO BUILD BECAUSE THEY DON'T WANT TO SHOW THAT EXPENSE AND HAVE TO DEAL WITH THE COMPLAINTS.
BUT I MEAN AT THE END OF THE DAY, FEES ARE GOING UP.
IT'S GETTING MORE EXPENSIVE AND I THINK IT'S THE CITY'S RESPONSIBILITY TO BE ACCOUNTABLE FOR THAT AND TO ANSWER TO THEIR CONSUMERS AND TAKE CARE OF IT.
THANK YOU SO MUCH FOR YOUR TIME.
BEFORE YOU LEAVE, LET ME SEE THIS.
ANY QUESTIONS? ANY QUESTIONS? UH, THE ONE THING I THAT MAKES ME TAKE PAUSE IN THE, WHAT THE CITY TOLD US EARLIER WAS THAT THERE IS NO OTHER CITY IN SAN DIEGO COUNTY THAT IS DOING IT THE WAY WE'RE DOING IT.
UM, WHAT ARE YOUR THOUGHTS ON THAT? CAUSE THAT'S A LOGICAL ARGUMENT THAT IF WE'RE THE, THE ONE OUTLIER THAT IT WOULD MAKE SENSE TO, TO DO WHAT THE INDUSTRY STANDARD IS TO SAY, YOU KNOW, NO I HAVEN'T, I DIDN'T FOLLOW UP WITH CHULA VISTA AT THE TIME.
THEY DECIDED TO DO THEIR, THEIR SEWER BILLING IN HOUSE.
UM, YOU KNOW, F UH, YOU KNOW WHAT? I CAN'T REMEMBER EITHER.
ONE OF THEM WAS, I THINK IN ONE OF THEM WASN'T THEY BOTH BILLED FOR WATER, BUT ONE OF THEM WASN'T BILLING SEWER.
[01:40:01]
OF CHULA VISTA BILLS FOR THAT AND I, IT COULD BE BOTH, BUT I COULD BE MISTAKEN.UH, UM, YOU KNOW, DOES, BUT THE CITY DOES DO SEWER BILLING.
I GRANTED YOU WANT TO WEIGH IN? YEAH, I SHOULD COMMENT THAT.
UM, OH, SO TOOL OF ASSISTS SERVED BY TWO DIFFERENT WATER DISTRICTS.
UM, OH, THAI WATER DISTRICT DOES SERVE ABOUT 20% OF CHULA VISTA, TWO OF US.
IT DOES BUILD THEIR SEWER THROUGH OTI ON THE TAT 20%, BUT THE OTHER 80% IS TA, IS BILLED THROUGH THE TAX ROLLS.
YOU CAN'T STUMP GRANDMA AND CITY STUFF.
SO THANKS FOR COMING RIGHT NOW.
I'M GOING TO FIND OUT ABOUT VISTA.
THAT'S A NEW ONE, SO THANK YOU.
COMMISSIONER, HOW ARE YOU? FABULOUS.
THANK YOU COUNCIL FOR HAVING THIS FABULOUS THING TODAY FOR EVERYBODY TO COMMENT ON.
I AM A REALTOR IN THIS LOVELY CITY OF EL CAHONE BY CONCERNS ARE THOUGH ONE CAUSE IT REALLY WASN'T TOUCH BASE ON WITH HOS.
I LIVE IN AN HOA, THEY PAY FOR MY WATER, I GET A TAX BILL, SO AM I GOING TO HAVE TO PAY FOR THE WATER TWICE TECHNICALLY SPEAKING OR SEWER TWICE BECAUSE I KNOW THEY'RE NOT GOING TO LOWER MY HOA BECAUSE I NOW GET OUT OF MY TAX BILL AND I DON'T KNOW IF THAT AFFECTS HOW MANY OTHER HOA IS THERE IN THE CITY OF ALCOHOL.
THAT WAS JUST A CONCERN OF MINE BECAUSE I PAY ALMOST $400 A MONTH RIGHT NOW FOR MY HOA BILL, SO NOW I'M GOING TO GET A WATER BILL, A SEWER BILL ON TOP OF THAT, SO I'M JUST CONCERNED ABOUT THAT.
AND REGARDING THE FEE OF 800,000 VERSUS 300,000 PLUS, IT'S GREAT NUMBERS, BUT I DON'T, I JUST DON'T KNOW THE BREAKDOWN.
IT MAY BE A TOTAL VIABLE NUMBER, BUT I HAVEN'T SEEN HOW THEY GOT TO THAT NUMBER OR LIKE THEY SAID, WHO YOU WENT OUT AND OUTSOURCE TO AND WHAT THOSE COSTS WERE.
AND DO WE REALLY NEED FOUR PEOPLE? CAN WE DO IT WITH LESS? I JUST WOULD LIKE THAT EXPLORED A LITTLE MORE OR MAYBE SOME MORE INFORMATION ON THAT TO KNOW WHAT THE COST REALLY IS.
IT COULD BE THAT AND THAT'S GREAT.
I'M ALL ABOUT SAVING MONEY, BUT I HAVEN'T REALLY SEEN HOW THEY DERIVE TO THOSE NUMBERS.
HE HAD A VERY GOOD PRESENTATION, BUT I JUST DON'T KNOW THE BREAKDOWN.
UM, AND THEN REGARDING, I KNOW RICH, UH, TOUCHED BASE A LITTLE BIT ON THE, UH, QUALIFYING FOR A HOME.
YOU KNOW, I HAVE SEEN ESCROWS FALL APART CAUSE AT THE END THE COST OF LIVING IS REALLY HIGH.
INTEREST RATES ARE GREAT RIGHT NOW, BUT THAT'S TODAY.
AND WHEN YOU GET DOWN TO THE NITTY GRITTY AT THE END, IT'S SOMETIMES DIFFICULT.
YOU KNOW, THE COSTA COSTA, THE DEBT TO INCOME RATIO SOMETIMES BECOMES A PROBLEM WITH EVERY LITTLE PENNY THAT THEY MAKE.
I MEAN SOMETIMES I'VE SEEN DEALS FALL APART CAUSE THEY WENT TO OLD NAVY AND BOUGHT A SWEATER.
I'M LIKE, IT'S A SWEATER, IT'S A $45 SWEATER, GO PAY OFF THE DAMN SWEATER.
IT GETS VERY NITTY GRITTY REGARDING THOSE COSTS.
SO I KNOW IT'S A LITTLE TINY FEE, BUT SOMETIMES THOSE REALLY TINY FEES MATTER WHEN IT COMES TO PURCHASING HOMES AND YOU KNOW, IT'S A GREAT PRICE.
SO THAT'S MORE PROPERTY TAX FOR EL CAHONE BUT WE GOT TO GET THEM TO QUALIFY TO GET INTO THOSE HOMES.
AND SO GREG, DO YOU WANT TO RESPOND TO THAT? YEAH, TWO QUICK THINGS.
UM, WHEN WE WENT OUT AND MET WITH SOME OF THE STAKEHOLDER GROUPS, ONE OF THE CONCERNS WAS WHY ARE YOU DOING THIS SO SOON WHEN REALLY THIS DECISION DOESN'T HAVE TO BE MADE UNTIL JUNE.
AND I THINK THE COUNCIL REITERATED THIS POINT LAST TWO MEETING TWO WEEKS AGO THAT THE SOONER WE GET THIS INFORMATION OUT, THE BETTER.
IF THIS IS THE ROUTE WE'RE GOING TO GO BECAUSE WE CAN WORK WITH HOA GROUPS AND THEY, AND WE'LL SHOW THEM SAMPLE BILLS, THEY CAN START FIGURING OUT PROCESSES TO GET IN PLACE SOONER THAN LATER.
SO WE'RE, ONE OF OUR OUTREACH EFFORTS WILL BE TO TALK TO MOBILE HOME PARKS
THAT ONE, THAT SHEET THAT MR EPPERSON TALKED ABOUT, IS THERE A WAY WE CAN FORMAT THAT FOR DIFFERENT ORGANIZATIONS THAT WILL HELP THEM WITH THEIR BILLING PROCESS? SO THAT'S SOMETHING THAT'S IMPORTANT TO US AS PART OF THE PUBLIC OUTREACH IN TERMS OF THE STAFFING AND, AND ACTUALLY, UM, UH, MS POLLOCK RODIN, THE PREVIOUS SPEAKER TALKED ABOUT STAFFING LEVELS AND YOU KNOW, HOW, HOW ON EARTH YOU CAN USE FOR STAFF, UM, IF YOU, MR EPPERSON ADDRESSED A LITTLE BIT, BUT THERE'S MORE THAN JUST MILLING OUT BILLS.
EVERY TIME SOMEONE MOVES IN OR MOVES OUT, WE HAVE TO MANAGE THAT DATABASE.
IT'S WORKING WITH ENVY FIVE TO MAKE SURE THAT THEY HAVE THE RIGHT INFORMATION.
WE CURRENTLY ARE CONTRACTING OUT CALL CENTER SERVICES.
WE WOULD HAVE TO BRING THAT IN.
I DON'T KNOW HOW MANY CALLS WE'RE GETTING A DAY, 40 CALLS A DAY.
RIGHT NOW WE'RE AVERAGING 40 CALLS A DAY THAT WE'RE, I'M CONTRACTING THAT OUT.
IT WOULD ALSO INVOLVE MAILING OUT AND IT'S
[01:45:01]
NOT 17,000 BILLS.WE HAVE 17,000 CUSTOMERS THAT GET SIX BILLS A YEAR.
THAT'S 102,000 BILLS THAT GO OUT.
SO IF YOU WERE TO MAIL EVERY BILL OUT, I JUST DID THE MATH REALLY QUICKLY.
IT ENDS UP BEING ABOUT 2000 BILLS A WEEK OR SINCE WE WORK FOUR DAYS, ONE WEEK, FIVE DAYS, ONE WEEK, AN AVERAGE OF 4.5.
THAT'S 435 BILLS A DAY IS GOING ON.
I THINK STAFF IS, UM, POLLYANNISH AND THINKING THAT WE CAN GET AWAY WITH ONLY FOUR STAFF.
I THINK IT MAY ACTUALLY BE MORE.
UM, I I LIKE THEIR GO TO THEIR CAN DO ATTITUDE BUT UM, I THINK FOR STAFF IS ACTUALLY PUSHING IT AFTER I'M LOOKING AT THEIR ANALYSIS AND HOW WE'RE GOING TO GET TO THAT POINT.
SO I THINK WE'LL USE ALL FOUR.
IN OTHER WORDS, UM, I DON'T THINK IT WILL BE LESS.
THAT'S AN INTERESTING POINT ABOUT THE HOA IS I HADN'T THOUGHT ABOUT THAT.
I GUESS PEOPLE THAT ARE IN THAT SITUATION WOULD HAVE TO HOLD THEM TO ACCOUNT AND SAY, WELL IT'S TIME TO GO THE OTHER DIRECTION FOR ONCE YOU GIVE US SOME MONEY BACK.
THEY'RE REALLY GOOD AT RAISING IT, BUT I DON'T KNOW HOW WELL THEY NEVER HAD IT LOWERED.
SO THAT SEEMS TO BE THE WAY OF LIFE, BOB.
YOU RECEIVE A TAX BILL ON YOUR PROPERTY? YES I DO.
I PAY THE HOA SEPARATE THAT TAX BILL THAT WOULD GO UP.
BUT MY HOA PAYS FOR THAT ALREADY.
SO THE HOA TAKES THAT INTO ACCOUNT.
THEY, YOU'D WANT TO CALL THEM AND SAY, ARE YOU GOING TO JUST SIT DOWN FOR US NOW? YEAH, THEY'RE NOT GOING TO, YES.
WELL, THEIR COSTS WILL BE LOWER.
SO I THINK THAT'S A, AN ARGUMENT YOU'D BETTER RATE WITH THEM.
TRACY HOLLINGWORTH TRACY'S NICE TO SEE YOU.
I WAS HERE IN 2013 WHEN THIS ISSUE WAS BUBBLING.
I'M TRACY HOLLINGWORTH WITH THE PACIFIC SOUTHWEST ASSOCIATION OF REALTORS AND WE APPRECIATED THE CITY MANAGER, ASSISTANT CITY MANAGER, ENTER CITY DOWN WITH NOT JUST MYSELF, BUT MOLLY FROM THE APARTMENT ASSOCIATION TO DISCUSS, YOU KNOW, THIS BILL AND HOW IT WOULD WORK.
UM, THE CONCERN THAT ALWAYS IN OUR INDUSTRY IS HOW CAN A PERSON, UH, SQUEEZE INTO THAT HOME? AND AS REBECCA POINTED OUT, INTEREST RATES ARE LOW RIGHT NOW, BUT WE DID ATTACH AN ANALYSIS FROM ONE OF OUR LENDER MEMBERS TO THE BACK OF OUR LETTER.
HE SHOWED HOW EVERYTHING WOULD BE BROKEN OUT AND THAT, YOU KNOW, YOU'RE, EVEN THOUGH WE HAVE LIKE A VERY LOW $45, THAT WOULD BE KIND OF PER MONTH TYPE OF A CALCULATION.
A LOT OF PEOPLE, FORMER NEIGHBOR, NEIGHBOR OF MINE IN PINE HILLS SAID THAT SHE PAYS $120 EVERY SEWER BILL AND THAT'S JUST THREE PEOPLE IN THE HOUSE.
SO THE CONCERN IS, YOU KNOW, QUALIFICATION, YOU KNOW, FOR A MORTGAGE.
WE TALKED TO MR GOBLE ABOUT, UM, HOW MANY PEOPLE WOULD FALL OUT OF, YOU KNOW, TRANSACTIONS.
AND EVEN THOUGH THAT MIGHT BE A FRACTION OF ALL THE RATE PAYERS ARE SITTING HERE IN THE AUDIENCE, UM, THE, YOU KNOW, THEY DON'T, A LOT OF PEOPLE DON'T PLAN.
THEY DON'T KNOW THAT, UM, THE, THE CITY IS THE ONE TO CONTACT IF THEY GET THEIR TAX BILL.
AND SO WHAT I DID WAS, AND YOU HAVE SOME VERY GOOD RESEARCH ON YOUR WEBSITE.
I LOOKED AT THE NV FIVE REPORT.
UM, THEIR RECOMMENDATION STARTING ACTUALLY THIS NOVEMBER, I KNOW SOMEBODY SAID NEXT YEAR, BUT THIS NO MEMBER, THEY'RE RECOMMENDING A 14% RATE INCREASE IN JULY OF 2021 IN 11%, 20 TO 14%.
23 ANOTHER 11% IN 2024 ANOTHER 11%.
SO WHEN PEOPLE DON'T KNOW, I MEAN YOU'LL KNOW WHAT YOUR RATES ARE GOING TO BE, BUT ONE OF THE BIGGEST UNKNOWNS IS ACTUALLY THE CITY OF SAN DIEGO'S PASS THROUGH FEES, YOU KNOW, FOR THEIR SEWER RATES.
AND UM, AND YOUR, YOUR CONSULTANT SAID YOU'RE GOING TO HAVE TO HAVE THOSE SIGNIFICANT INCREASES IN ORDER TO INCREASE THE MONTHLY TO CALL A FIXED RATE.
AND THEY SAID THE CITY HASN'T HAD A RATE INCREASE SINCE 2017 AND THE LAST RATE STUDY WAS COMPLETED IN 2011 WHEN I MET WITH THE CITY MANAGER.
AND DIRK, I SAID, AREN'T YOU GOING TO HAVE TO DO WHAT THEY CALL A COST OF SERVICE STUDY FOR, YOU KNOW, THESE RATE INCREASES.
AND I GUESS THE QUESTION I HAD WAS, WAS THIS CONSIDERED THE COST OF SERVICE STUDY BUT MV FIVE AS FAR AS YOU KNOW.
LAST POINT IS THE CITY, THEY SAY THIS SURE CONSULTANT, THE CITY WILL ONLY MEET RECOMMENDED RESERVE TARGETS WITH THE CURRENT RATE INCREASE RECOMMENDATION BY SCALING BACK SOME OF THE CAPITAL IMPROVEMENT PROGRAM EXPENDITURES AND THEREBY DEFERRING SOME OF THE CAPITAL PROJECTS
[01:50:01]
UNTIL A LATER DATE.AND SO EVEN THOUGH WE'RE TALKING ABOUT SAVINGS AND THE ADDING TO THE CAPITAL IMPROVEMENT PROGRAM, THE RESERVES, YOU KNOW, YOU'RE NOT GOING TO BE ABLE TO APPARENTLY ACHIEVE SOME OF THOSE PROJECTS BECAUSE YOU'RE GOING TO HAVE TO START BUILDING THEM WITH THE SAVINGS AND ALSO WITH THE SIGNIFICANTLY HIGHER RATES.
SO I JUST REALLY APPEALED TO YOU TO LOOK, I'M A SAVER.
I PREFER TO HAVE A LOWER COST FOR THE CITY, BUT OUR, YOU KNOW, OUR CONCERNS ARE THAT PEOPLE ARE GONNA NOT BE ABLE TO BUY THAT HOME.
THEY'RE GOING TO FALL OUT OF ESCROW.
THEY WON'T KNOW THAT THAT BILL IS GOING TO BE COMING ON THE PROPERTY TAX BILL.
I LOVE THE FACT THAT YOU DID GOOD PUBLIC OUTREACH, BUT A LOT OF PEOPLE ARE STILL GOING TO BE LIKE IN 2013 PROBABLY COMING DOWN HERE AND ASKING YOU ALL WHAT HAPPENED.
ANY QUESTIONS FOR YOU? ALL RIGHT, THANKS TRACY.
LAST SPEAKER, DEIDRE CRUZ, I DON'T THINK THEY DIDN'T GET A SYRUP.
HELLO, MY NAME IS DEIDRE CRUZ.
UM, I'M A PARTNER IN A CPA FIRM HERE IN OKLAHOMA, ALSO A FINANCIAL ADVISOR.
UM, SO I DEAL WITH A LOT OF THE PUBLIC, PROBABLY ABOUT 450.
EAST COUNTY RESIDENTS ARE MY CLIENTELE AND IT'S TAX SEASON.
UM, I APPRECIATE THE STUDIES THAT WERE DONE.
I WOULD LIKE MORE DETAILS ON WHAT SOME OF THOSE ASSUMPTIONS WERE.
IT LOOKED LIKE IT WAS JUST STRAIGHT MATH OVER 10 YEARS FOR THE ANNUAL COST SAVINGS.
BUT UM, THAT CHART THAT SHOWED THE BIG DROP THE V CHART WITH THE, UM, MEDIAN, THE RESERVES, I WOULD ASSUME THEN THAT THERE'S A BIG PROJECT THAT'S GONNA OCCUR THIS YEAR THAT BROUGHT THE SPENDING DOWN CAUSE THEY THOUGHT WE WERE CLOSE TO THE LINE AND IN THE FIRST YEAR IT WENT DOWN BY SEVERAL MILLION DOLLARS.
SO I ASSUME THAT SOME PROJECTS ARE TO BE SPENT IN THE NEXT COUPLE OF MONTHS.
WE CAN ANSWER THAT QUESTION TO KIND OF GET, MR KENDRICK HAD MADE A COMMENT ABOUT PRUDENT ESCROW COMPANIES AND QUALIFYING FOR MORTGAGE RATES FOR FIRST TIME HOME BUYERS OR JUST HOME BUYERS IN GENERAL AND SOME ESCROW COMPANIES ARE SAVVY ENOUGH TO DO THE MATH AT ONE AND A QUARTER PERCENT.
I TOOK THE LIBERTY OF LOOKING AT MY OWN PROPERTY TAX BILL AND JUST FOR ITEMS ALONE THAT ARE NOT MY PROPERTY TAX AT 1% OF THE VALUE, A 16% OF MY PROPERTY TAX BILL IS IN OTHER BOND MEASURES THAT ARE ON MY PROPERTY TAXES.
IF I TAKE MY ANNUAL SEWER BILL AND ADD THE SEWER BILL TO MY ANNUAL PROPERTY TAX, IT EQUATES TO AN ADDITIONAL 9.5% OF MY TOTAL.
UM, MY ISSUE IS SO MUCH FOR ME AS A CITY RESIDENT OR A BUSINESS OWNER, IT'S FOR THOSE THAT ARE PROPERTY TAXES ARE PRETTY BIG BECAUSE WE BOUGHT RECENTLY IN FLETCHER HILLS.
SO THIS IS A FUNCTION OF MY TOTAL ISN'T AS SIGNIFICANT FOR THOSE THAT HAVE RECENTLY BOUGHT, BUT IT REALLY DOES COME DOWN TO HOW PEOPLE BUDGET AND PLAN.
AND WE ALL KNOW THAT IT'S VERY DIFFICULT FOR CONSUMERS TO PICK UP THIS PROPERTY TAX BILL AND READ IT.
I KNOW I'VE GOT SCRIBBLES ON IT, BUT THIS IS LITERALLY ALL MY EXTRA CHARGES.
CITY OF ALCON PROPER AND PEOPLE AREN'T GONNA READ IT.
SO IF YOU HAVE SOMEBODY WHO'S LIVED IN THEIR HOUSE AND THEY BENEFIT FROM PROP 13 AND THEY PAY $1,200 A YEAR FOR THEIR PROPERTY TAXES AND THEN SUDDENLY THEIR BILL INCREASED BY 50% RIGHT? BECAUSE $100 A MONTH AND I'M BEING CONSERVATIVE IS THEIR SEWER BILL.
AND ON A FIXED INCOME, I MEAN I SEE THESE PEOPLE QUITE OFTEN IN MY BUSINESS AND MY PRACTICE AND THE REALITY IS THAT THOSE OF US THAT ARE CURRENTLY WORKING, WE HAVE THE REVENUE, BUT IT'S A BIG CHANGE TO PEOPLE'S PLANNING AND I THINK IT RUNS INTO A PROBLEM.
I FEEL LIKE IT HAS SAVINGS THAT ARE CAUSED OR THAT ARE A RESULT OF MOVING IT TO THE PROPERTY TAX ROLLS WITH THE COUNTY.
IT'S LIKE PUTTING A FOREST FIRE OUT WITH A BUCKET OF WATER, LIKE YOUR $500,000 ANNUAL SAVINGS FOR A $5 MILLION BUDGET SHORTFALL.
IT'S, I'D RATHER SEE A RATE INCREASE.
I LIKE TO, I LIKE TO PLAN IN REAL TIME.
I LOOK AT MY, MY BILL AND IF IT'S BIGGER IT'S BECAUSE I USED MORE.
I DON'T WANT TO WAIT SIX MONTHS TO KNOW THAT I USED MORE A YEAR AGO.
SO I JUST THINK THERE'S A LOT OF PERSONAL ACCOUNTABILITY THAT THE THE CITY NEEDS TO TAKE INTO CONSIDERATION ABOUT HOW THIS REMOVES PERSONAL CONSUMER CONTROL FROM THE PROCESS FOR A MEASLY COUPLE HUNDRED THOUSAND DOLLARS A YEAR.
LIKE THAT'S PENNIES IN THE GRAND SCHEME OF YOUR CIPS.
SO LET ME SEE IF THERE'S ANY QUESTIONS.
OH YEAH, I THOUGHT ABOUT THAT TOO.
ONE GENTLEMAN SAID, I THINK HE WAS GOING TO GO FROM A SIX MONTH, $1,300 BILL TO A SIX MONTH $1,700 BILL.
NOW, IF YOU'RE PAYING $10,000 A YEAR IN TAXES,
[01:55:01]
IT'S A, IT'S A NEGLIGIBLE, BUT IT'S RIGHT.I MEAN, OUR APP, MY PERSONAL PROPERTY TAXES ARE PRETTY SIZABLE.
BUT IF I COMPARE THAT TO MY PARENTS WHO HAVE ALSO LIVED IN THE CITY SINCE 1973 IF THEY HAVE TO PUT THEIR WATER BILL ON THEIR PROPERTY TAXES, THEIR PROPERTY TAX BILL JUST DOUBLED.
AND THEY'RE ON A FIXED INCOME.
I MEAN, TO BE FAIR, THEY'D HAVE TO PAY THAT MONEY EITHER WAY.
BUT WHEN IT, THE REALITY IS MOST PEOPLE YOU'RE TALKING ABOUT, SO 73% OF THE, OF THE OWNERS IN THE CITY ARE ON IMPOUNDS.
SO THAT'S GONNA BE, THAT'S GONNA AFFECT THEIR MONTHLY IMPOUND ACCOUNT.
THEY'RE GOING TO GET A NOTICE FROM THEIR ESCROW COMPANY THAT THEIR, THEIR RESERVES HAVE GONE UP AND NOW THEY NEED TO INCREASE THEIR MONTHLY BY $100 30 SOMETHING PERCENT OF THE RESIDENTS OF EL CAHONE DO NOT HAVE THAT.
AND I GUARANTEE YOU THE REASON THAT THEY DON'T HAVE IMPOUNDS IS BECAUSE THEY'VE LIVED IN THEIR HOUSE FOR A VERY LONG TIME AND IT'S NOT REQUIRED BY A LENDER OR THEIR HOUSE IS PAID OFF.
THEREFORE THEY'RE GOING TO GET THESE BIG SURPRISES AND THAT'S GONNA REALLY HURT SOME OF THOSE SENIOR CITIZENS.
SO I UNDERSTAND THE MACRO IMPACTS AND WHY WE WANT TO BE SAVING MONEY AND I APPRECIATE RUNNING A LEAN ORGANIZATION.
I JUST THINK THAT THERE NEEDS TO BE A LITTLE BIT MORE CONSIDERATION AND TIME SPENT ON HOW THIS IS ACTUALLY GOING TO AFFECT OUR, OUR SENIOR COMMUNITY AND THOSE ON A VERY LOWER FIXED INCOME.
WELL, IT'S AN INTERESTING POINT.
NO, I HAVEN'T HEARD ANYBODY COME IN TODAY AND SAY, GEE, UH, I'M NOT GOING TO GET A SEWER BILL.
AND UH, BUT UNFORTUNATELY, UH, I DIDN'T HEAR THAT PERSON.
BUT UH, THE DOLLARS ARE THE SAME EITHER WAY.
AND IF THEY GET A BIGGER TAX BILL AND THEY HAVE A CREDIT CARD, THEY CAN GET A CREDIT CARD LOAN FOR A AND JUST, I KNOW YOU'RE NOT RECOMMENDING GETTING A CREDIT CARD LOAN TO PAY YOUR SEWER BILL THOUGH, RIGHT BOB? I'M TALKING ABOUT IF YOUR PROPERTY TAX BILL IS HIGHER, YOU CAN, YOU CAN PAY YOUR PROPERTY TAX BILL WITH YOUR CREDIT CARD AND THEN PAY IT OFF IN TWO OR THREE MONTHS IF YOU WANT.
WHAT I THINK IT'S REALLY IMPORTANT AND YOU REALLY, REALLY NEED TO BE CAREFUL IS THAT YES, PEOPLE NEED TO PLAN, BUT THE REALITY IS, AND YOU KNOW THIS, THAT PEOPLE THAT ARE ON THAT STRICT OF A BUDGET AREN'T GOING TO BE ABLE TO PULL THIS OFF WITHOUT IT CAUSING SOME SERIOUS PROBLEMS. AND THE THE SAME ARGUMENT FOR GETTING PEOPLE INTO THESE HOMES WITH THE DECK TO INCOME RATIO IS WHAT YOUR IMPOUNDS NEED TO BE FRONTED IN ORDER TO GET INTO THAT HOME IN OKLAHOMA IS A GREAT PLACE FOR PEOPLE TO START OUT IN BECAUSE THE HOME PRICES ARE A LITTLE BIT MORE APPROACHABLE.
THAT'S A SERIOUS CONCERN FOR PEOPLE.
NOW YOU'VE GOT PROPERTY TAX IMPOUNDS THAT NEED TO BE FUNDED AND THEN IT'S AN EXTRA $1,400 A YEAR THAT COULD, THAT'S AN EXTRA ONE OR 2% THAT COULD SKEW THE THE CURVE.
BUT I THINK ONE OF THE THINGS THAT I'M REALLY ACTUALLY CONCERNED WHEN I HEAR ABOUT THE CIP AND THE SHORTFALL THAT'S THERE, YOU'RE TAKING THESE COST SAVINGS AND YOU'RE BASICALLY JUST SAYING THAT THERE GOING TO GO TO THE CIP ISSUES.
THERE NEEDS TO BE MORE BUDGETING GOING ON THERE CAUSE THAT THAT LOOKS LIKE A RUNAWAY TRAIN IN MY OPINION WHEN I LOOK AT THAT CHART.
DID YOU WANT TO JUST THAT CERTAINLY SHE, SHE UH, IN FACT MS. CRUZ IS REALLY ASTUTE TO SEE THAT BIG TROP THAT ACTUALLY IS NOT A FUNCTION OF BIG CAPITAL PROJECTS.
IT'S A FUNCTION OF THE CITY OF SAN DIEGO INCREASING THEIR RATES IN THE CITY OF EL CAHONE MAINTAINING OUR CURRENT SEWER RATES WHILE NOT ADDRESSING THAT IMMEDIATELY.
SO WE WERE REALLY FRONTING THAT INCREASE IN SAN DIEGO RATES BEFORE WE HIT THE RATE PAYER.
THAT'S WHY THAT DROP OCCURRED.
DO WE HAVE ANY MORE CARDS? NO MORE CARDS HERE.
I HAVE TO MAKE A MOTION THEN TO CLOSE THE PUBLIC HEARING.
PLEASE VOTE MOTION CARRIES BY UNANIMOUS VOTE.
I'VE HEARD A LOT TODAY GENTLEMEN.
UM, SOMEBODY LIKE THE BEGINNING OF THE DISCUSSION THOUGHTS, I'LL GO FOR IT.
UM, THE STAFF REPORT WAS EXCELLENT.
IT'S, IT'S WHAT WE EXPECT FROM STAFF.
I THINK YOUR COMMUNITY OUTREACH WAS FIVE STAR.
I THINK, UH, YOUR WILLINGNESS TO LISTEN TO OTHER STAKEHOLDERS BEFORE WE GOT HERE IS GREAT.
UH, THE STAFF REPORT IS WHAT I WOULD EXPECT FROM A HIGH PERFORMANCE ORGANIZATION AND YOU'VE DONE THAT.
SO EXCELLENT WORK ON THE STAFF REPORT.
NOW THERE'S MORE TO THE STORY AND THAT'S KIND OF WHY WE'RE HERE TODAY.
UM, PERSONALLY I WOULD TAKE THE TAX ROLL METHOD, I'LL TAKE THE SAVINGS AND, AND THAT KIND OF THING.
WE'D HAVE TO DISCUSS A WAY NOT TO TAKE THAT LOWER COST AS SAVINGS ON THE RATES OR INCREASED RESERVE.
IF WE JUST KEEP THE RATES THE SAME, DIFFERENT DISCUSSION.
I HAVE A COUPLE OF BIG CONCERNS.
[02:00:01]
POINT.IF MY SEWER RATE IS BASED ON, UH, THE WINTER OF 2019 AND I DON'T SEE THE DOLLAR AMOUNT TO MY TAX BILL ON DECEMBER 10TH.
THAT'S A LONG TIME BEFORE YOU REALIZE I GET, YOU GET THE NOTICE IN JUNE, HERE'S YOUR NEW RATE.
BUT IT DOESN'T STRIKE YOU UNTIL YOU ACTUALLY WRITE THE CHECK ON DECEMBER 10TH.
THAT'S, THAT'S ALMOST A YEAR BEFORE THE TIME THAT YOU GOT THE NEW RATE AND IT STRIKES.
UM, THE OTHER 30% IS KINDA WHO I'M CONCERNED ABOUT THAT THE IMPOUNDS DOESN'T SEEM TO BE AN EASY CHANGE.
UH, MS PAULA CRUZ RAISED A GREAT POINT ABOUT HOA IS, HOLY COW, HOW DO YOU GO BACK TO AN HLA AND SAY, NOW I WANT YOU TO LOWER MY HOA FEES BY THE AMOUNT THAT'S GOING ON IN MY TAX BILL.
YOU KNOW, WHAT ARE THE ODDS OF THAT? THERE'S PROBABLY EVEN A CONTRACT IN THERE THAT, YOU KNOW, YOU'D HAVE A, YOU'RE TALKING ABOUT RESIDENTS FIGHTING EACH OTHER OR FIGHTING THE BOARD.
I THINK WE CREATED THAT SITUATION.
UM, THIRD THOUGHT IS WHAT WE'VE DONE DOWN THIS ROAD A COUPLE OF TIMES, UH, WITH A CITY GOING TO FATHOM TO GO INTO THE CITY NOW TO SOMEBODY ELSE.
IF WE GO TO A VENDOR, I THINK IT'S THE LAST TIME FOLKS.
I THINK EVENTUALLY WE'RE GONNA HAVE TO JUST JOIN THE REST OF THE CROWD.
UH, BUT I DON'T THINK WE'RE AT THAT POINT TODAY.
UH, PEOPLE JUST DON'T LIKE BEING FRUSTRATED AND HAVE TO, WELL NOW I'VE GOTTA PAY THIS.
MY AUTO DEV IS NOT GOOD ANYMORE.
SO ALTHOUGH I AM RECOMMENDING GOING TO AN OUTSOURCE, I THINK THIS IS THE LAST TIME WE CAN DO THAT.
UH, I THINK IT'S NOT JUST A SENIOR AND A LOW INCOME ISSUE.
IT'S AN ISSUE FOR ANYBODY WHO LIVES PAYCHECK TO PAYCHECK.
THERE ARE LOW INCOME, MIDDLE INCOME, EVEN PERHAPS HIGH INCOME PEOPLE THAT LIVE PAYCHECK TO PAYCHECK.
SO IT'S NOT A SENIOR OR AN INCOME ISSUE, IT'S A PAYCHECK TO PAYCHECK ISSUE.
IT DOES CREATE A BURDEN IF YOU FORGET TO SAVE.
AND THEN THE RISK IS ARE WE CREATING A SITUATION THAT WE INCREASE THE NUMBER OF TAX LIEN SALES? YOU'RE FORCED TO SELL YOUR PROPERTY BECAUSE, OOPS, I FORGOT TO BUDGET FOR IT AND TO PUT IT ON MY TAX BILL, I WOULD HATE THE UNINTENDED CONSEQUENCE TO BE WE FORCE MORE TAX LIEN SALES BECAUSE PEOPLE DIDN'T BUDGET TO PUT IT ON THEIR, THEIR UM, TAX ROLLS.
SO FOR THAT RE, UH, HERE ARE THE CUSTOMER SERVICE WOULD GO TO THE CITY STILL IF WE OUTSOURCE, I THINK THE CITY STAFF IS CAPABLE OF HANDLING THOSE.
UH, SO FOR THAT REASON, BECAUSE PEOPLE LIVE PAYCHECK TO PAYCHECK, IT WOULD CREATE A BURDEN.
THE UNINTENDED CONSEQUENCE COULD BE HIGHER TAX LIEN SALES BECAUSE OF THE HOA ISSUE.
BECAUSE OF, OF UH, THOSE, I'M ACTUALLY RECOMMENDING THE OUTSOURCED.
IT'S ONLY A $2 PER MONTH DIFFERENCE.
THE OUTSOURCED IS ESTIMATED TO BE $25 $48 A YEAR, 23 VERSUS A TAX ROLL.
IT'S A $25 DIFFERENCE OR $2 PER MONTH.
I THINK $2 PER MONTH IS WORSE WORTH NOT CREATING THESE ISSUES.
BOB? WELL, I WAS THE ONE, I MENTIONED IT BEFORE THAT, UH, I'M ALL IN FAVOR OF GOVERNMENT SAVING MONEY SO THAT THEY CAN KEEP COSTS DOWN FOR THE CITIZENS.
AND THAT'S WHY I'M GOING TO SUPPORT GOING ON THE COUNTY TAX ROLL BECAUSE IT SAVES THE RESIDENTS A LOT OF MONEY, HALF A MILLION DOLLARS A YEAR.
I KNOW IT ISN'T MUCH PER PERSON, BUT EVERY DOLLAR COUNTS AND UH, PEOPLE CAN PLAN AHEAD.
THEY, THEY, IT'LL BE THE SAME DOLLARS PER YEAR THAT THEY PAY OUT.
IT JUST, IF THEY PAY IT OUT TWICE INSTEAD OF SIX TIMES A YEAR, SO THEY'LL HAVE TO JUST GET USED TO IT.
UM, I PAY THAT IN LA MESA ON THE PROPERTY THAT, UH, WE HAVE IN LA MESA.
AND, UM, I REMEMBER WHEN THEY CHANGED AND I HAD TO LET THE TENANTS KNOW THAT THE, UH, TAX BILL WOULD BE COMING ON THE PROPERTY TAX AND THEN THEY'D HAVE TO RENT IT.
AND I HAD NO PROBLEM WITH THE TENANT.
SO, UH, IT'S JUST A LEARNING PROCESS.
SO ANYWAY, I'M GOING TO SUPPORT THE, PUTTING IT ON THE TAX ROLL.
ANYBODY ELSE LIKE TO SPEAK? SURE.
THIS IS PROBABLY A NO, BUT I FEEL IT WARRANTS A QUESTION.
THERE'S NO WAY FOR US TO IDENTIFY THAT 30% OF RESIDENTS THAT ARE NOT ON AN IMPOUND ACCOUNT.
IS THERE ANY WAY TO IDENTIFY THAT OTHER THAN SELF IDENTIFYING? YEAH, I THINK YOU'RE CORRECT.
I DON'T THINK THERE'S A WAY TO DO IT THAT I COULD BE WRONG.
[02:05:01]
UH, THE, UH, THE ASSESSOR CAN RUN A QUERY.UH, I GOT THE INFORMATION TODAY, UH, WHERE THEY CAN HAVE ALL THE, UH, PARCELS THAT DON'T HAVE WHAT THEY CALL A CORTECH ACCOUNT, WHERE IT GOES TO THE BANK.
AND, UH, W YOU KNOW, WE, WE COULD, WE CAN ASK THEM TO DO THAT AND MAKE A SPECIAL MAILING TO THEM.
ANY OTHER QUESTIONS, PHIL? NO, THAT INCIDENT, LUCKILY WE HAVE AN EXPERT HERE.
SO KARA, DID YOU WANT TO SAY ANYTHING? YEAH, THIS IS A DIFFICULT DECISION.
I'M, I'M ALWAYS FOR SAVING MONEY, UH, FOR THE TAXPAYERS.
UH, SINCE 70% OF THE, UM, PEOPLE THAT HAVE MORTGAGES DO HAVE IMPOUNDS ACCOUNTS.
UH, THEY'RE GOING TO BE ACTUALLY PAYING MONTHLY NOW INSTEAD OF EVERY TWO MONTHS.
SO THEIR PAYMENT, THEIR PAYMENT'S GOING TO DROP IN HALF AS FAR AS BEING THE FREQUENCY.
UM, IT TAKES FIVE YEARS FOR A TAX LIEN SALE.
SO, UH, THEY'D BE GETTING PLENTY OF WARNINGS FROM THE TAX COLLECTOR ABOUT THAT.
UH, AND AS I AM CONCERNED ABOUT, UH, THE, UH, NUMBER OF PEOPLE THAT MIGHT NOT BE ABLE TO MAKE THE, TO QUALIFY BECAUSE OF THE EXTRA ON THE AVERAGE, UH, UH, $40 A MONTH FOR THE, UH, THAT WOULD BE ADDED TO THE TAX BILL IF INDEED IT'S, UH, UH, CALCULATED THAT WAY.
BUT, UH, SO FAR MY INFORMATION SAYS IT'S THE 1.25% THEY USE AS AN INDUSTRY STANDARD SO THAT THAT AREA IS A LITTLE BIT FUZZY.
BUT DO WE REALLY WANT TO HAVE THE REST OF THE TAXPAYERS SUBSIDIZE THAT TINY, TINY PERCENTAGE OF PEOPLE THAT MIGHT NOT QUALIFY? SO IT'S A MATTER OF OF FAIRNESS.
UM, SO I'M GOING TO SUPPORT PUTTING IT ON A TAX BILL AND WE'LL BE LIKE ALL THESE OTHER CITIES IN THE COUNTY.
SO IN, IN THINKING ABOUT THIS, UM, DRIVING IN TODAY, I WAS THINKING ABOUT IN THE CAR, WHICH I USUALLY THINK ABOUT THESE THINGS AND I REALLY DIDN'T KNOW HOW I WAS GOING TO VOTE TONIGHT ON THIS BECAUSE ON ONE HAND IT IS VERY LOGICAL TO DO SOMETHING THAT COSTS LESS AND MORE EFFICIENT.
BUT SOMETIMES COST IS NOT THE ONLY ISSUE.
UM, AND IN THIS CASE, COST IS REALLY NOT AN ISSUE BECAUSE OUR RESPONSIBILITY PRIMARILY HERE IS TO MAKE SURE THAT THE CITY, WHICH REFLECTS ALL THE RESIDENTS, UH, DOESN'T HAVE TO PAY MORE OUT OF THE CITY'S NOT GOING TO PAY MORE.
IT'S GOING TO BE A PASS THROUGH TO THE CONSUMER.
SO I WANTED TO SEE WHO WAS GOING TO COME TONIGHT.
WOULD PEOPLE BE COMING AND SAYING, YOU BETTER SAVE US MONEY AND, AND NOT CO NOT PASS THROUGH ANY MORE COST TO US OR PEOPLE ARE GOING TO COME AND SAY, NO, WE DON'T CARE.
WE, WE LIKE IT THE WAY IT WAS.
AND THAT OBVIOUSLY WAS WHAT HAPPENED TONIGHT.
PEOPLE DON'T FORGET TO PAY THEIR TAXES THAT SOME JUST CAN'T.
AND, UM, THEY PUT IT OFF AND THEY, THEY HOPE FOR THE BEST.
THEY, THEY SAY, WELL, I'LL FIGURE IT OUT NEXT MONTH.
I'LL FIGURE IT AT THE END OF THE YEAR.
SOMETHING'S GONNA COME THROUGH AND I'LL FIGURE OUT A WAY TO PAY.
AND THEN THEY GO TO THEIR CPA OF THE, OF THE YEAR AND THEY OWE THIS BILL OR TAXES AND THEY SAY, NOW I DON'T KNOW WHAT TO DO.
UM, I, I, I HATE BEING PART OF THAT PROCESS, UM, MAKING THAT WORSE.
AND MY LAST POINT IS THAT I'M UNCOMFORTABLE ATTACHING THIS TO PEOPLE'S MOST IMPORTANT ASSET.
THE ONLY THING THEY HAVE WHEN THEY GET OLDER IS THEIR HOME.
UM, IT'S WHAT THEY SELL IN ORDER TO GET INTO A ASSISTED LIVING OR THAT'S WHAT THEY SELL TO PAY FOR, UH, AN ILLNESS OF A SPOUSE.
IT'S WHAT THEY SELL TO, UH, EVENTUALLY TO LEAVE TO THE GRANDCHILDREN.
UM, WHEN YOU ATTACH SOMETHING TO THAT, THE HOUSE, IT PUTS THEM IN A SITUATION WHERE THEY POSSIBLY COULD LOSE IT EVEN, EVEN THOUGH IT SEEMS, YOU KNOW, FAIRLY UNLIKELY, IT'S A SMALL AMOUNT, BUT THINGS LIKE THAT HAPPEN.
SO HAVING SAID ALL THAT, I'VE BEEN CONVINCED TO VOTE NO ON THIS.
AND UM, BUT IF SOMEBODY WOULD LIKE TO MAKE A MOTION, I'LL, I'LL TAKE THE MOTION AND WE WILL, WE WILL SEE WHAT HAPPENS WITH THE VOTE.
[02:10:01]
MOTION CAN BE MADE, UM, IT DOESN'T HAVE TO NECESSARILY BE A YES OR NO CAUSE WE TALKED ABOUT A COUPLE OF DIFFERENT THINGS.MR GOBLE DID TALK ABOUT THE HOA.
THERE'S PROBABLY VERY FEW HOS THAT ACTUALLY BILL THEIR, THEIR MEMBERS FOR SEWER OR FOR SEWER.
WE COULD, AS PART OF THE MOTION, IF THIS IS WHAT YOU WANTED TO DO OR CONSIDER THINK ABOUT IS YOU COULD DIRECT STAFF TO HAND CONTINUE TO HANDBILL THOSE HOS THAT DO THAT AND THAT MAY JUST HELP RESOLVE SOME OF THOSE PROBABLY RARE INSTANCES IN THE CITY, BUT JUST ALLEVIATE SOME CHALLENGES THAT COULD BE AN OPTION THAT COUNCIL MAY WANT TO CONSIDER.
YOU KNOW, AND THAT BRINGS UP A POINT.
I, NOBODY EVEN ASKED THE QUESTION I CAUSE I THINK THE ANSWER IS PROBABLY OBVIOUSLY NO, BUT DOES IT HAVE TO BE ONE WAY OR THE OTHER? CAN PEOPLE HAVE AN OPTION OF PUTTING IT ON THEIR SEWER OR PUTTING ON THEIR PROPERTY TAXES OR PAYING MONTHLY? YES.
I DON'T WANT MR EPPERSON KNOWS ABOUT VISTA IS WHAT IT SOUNDED LIKE AS YOU COULD PREPAY.
SO RATHER THAN RATHER THAN PAYING THE QUESTION I JUST ASKED.
AT SOME POINT THEN IF YOU'RE PAYING MONTHLY AT SOME POINT YOU, YOU NO LONGER HAVE THOSE SAVINGS CAUSE YOU WOULD STILL NEED MAYBE RATHER THAN FOUR OR FIVE PEOPLE, YOU NEED THREE PEOPLE, BUT YOU STILL NEED PEOPLE TO ANSWER.
HAVING SAID THAT, IF SOMEBODY LIKES TO MAKE A MOTION, I THINK BOBBY, WE'RE ABOUT TO MAKE A MOTION.
WE UH, ATTACH IT TO THE, UM, PROPERTY AND SAVE THE CITY AND THIS INNOCENCE OF ALCOHOL IN A HALF A MILLION DOLLARS A YEAR.
DID YOU WANT TO ADDRESS A GRAB SET ABOUT THE HOA? WELL, I THINK WE NEED TO NOTIFY THE HOA AES AND UM, I THINK EVERYBODY WITH AN HOA GETS HIS PROPERTY TAX BILL NOW AND UM, INSTEAD OF PAYING THE SEWER BILL INDIVIDUALLY, THEY'D BE PAYING IT ON THEIR PROPERTY TAX BILL.
IT SHOULDN'T AFFECT THE HOA AT ALL.
YOUR MOTION IS TO APPROVE AND TO ADD WHAT GRAHAM SUGGESTED ABOUT THE HOA.
I WAS LIKE, ANGELA, CAN YOU RESET MY VOTE? THANK YOU.
WOULD SOMEBODY LIKE TO SECOND THAT MOTION? MMM, I'LL SECOND THAT.
THE MOTION HAS BEEN MOVED AND SECONDED.
MOTION FAILS BY A TWO TO THREE VOTE WITH MAYOR WELLS, COUNCIL MEMBER GOEBEL AND COUNCIL MEMBER OR T'S VOTING NO, LIZ JEBEL.
THANKS FOR BEING PART OF THE TOBACCO DEMOCRATIC PROCESS.
WE'RE GOING TO TAKE A SHORT RECESS FOR THOSE OF YOU WHO DIE HARD CITY COUNCIL FANS.
WE'LL BE BACK IN A MINUTE TO FINISH AND YOU ARE WELCOME TO STAY FOR THE REST OF THE NIGHT.
IF YOU NEED TO GO HOME FOR SOME REASON THOUGH, HOWEVER, PLEASE FEEL FREE TO DO SO.
OH, WE HAVE A FEW ADMINISTRATIVE REPORTS
[8. Subsidy Request for Use of The Magnolia RECOMMENDATION: That the City Council authorizes up to $6,000 in assistance for Christian Youth Theater to access The Magnolia for the annual Traditions of Christmas shows between December 7 and 13, 2020. ]
ON TODAY'S AGENDA AND ITEM EIGHT IS A SUBSIDY REQUEST FOR THE MAGNOLIA.I'LL ASK STAFF TO INTRODUCE THIS ITEM.
MR MAYOR, I WHEN YOU ASKED FOR CHANGES TO THE AGENDA, I'M SO USED TO SAYING NO CHANGES TO THE AGENDA, BUT THERE SHOULD BE, SHOULD'VE BEEN A CHANGE TO THE AGENDA.
UM, CYT HAS ASKED THAT THIS ITEM BE PULLED FROM THE AGENDA TONIGHT SO THERE'S NO NEED TO ADDRESS IT.
[9. Project Assistance Center Online RECOMMENDATION: That the City Council accepts the report.]
ITEM NINE IS REGARDING THE PROJECT ASSISTANCE CENTER ONLINE.I'LL ASK STAFF TO INTRODUCE THIS ITEM.
THANK YOU MAYOR COUNCIL MEMBERS.
I'M THE DIRECTOR OF INFORMATION TECHNOLOGY HERE AT EL CAHONE.
UM, FIRST I'D LIKE TO THANK YOU FOR THE TIMING.
THIS ACTUALLY WORKS REALLY GOOD FOR OUR PROJECT TO ASSISTANCE STAFF.
THEY'RE GETTING READY TO, UH, GO OFF LINE IN ABOUT FIVE MINUTES.
BUT WE WANTED TO TALK ABOUT THEM AS PART OF THIS, UH, PROGRAM.
SO I'M HAPPY THAT THEY COULD BE HERE AND ALL THE TIMING WORKED OUT.
CAN YOU JUST TELL US WHO THEY ARE? WE'RE ABOUT TO, YEAH, YEAH.
SO TODAY WHAT WE'RE GOING TO TALK ABOUT IS SOME NEW AND EXCITING THINGS THAT ARE GOING ON IN THE PROJECT ASSISTANT CENTER.
SO FOR THOSE OF YOU THAT DON'T DO THIS EVERYDAY, THE PROJECT ASSISTANCE CENTER WAS ACTUALLY LAUNCHED IN 2014.
IT'S A WHOLE SYSTEM OR COMPREHENSIVE APPROACH TO BUILDING PLANNING, COMMUNITY DEVELOPMENT, ENGINEERING TO MAKE SURE THAT AS PEOPLE ARE BUILDING OR CHANGING OR HAVE NEW IDEAS FOR THE CITY, THAT THEY CAN COME TO ONE PLACE, GET THE INFORMATION THEY NEED.
THEY DON'T NEED TO FIGURE OUT IF IT'S A COMMUNITY DEVELOPMENT QUESTION OR A, OR AN ENGINEERING OR A PUBLIC WORKS QUESTION, THEY'RE ALL THERE TO HELP.
UM, AND IT'S REALLY MEANT TO BE A ONE STOP SHOP AT CITY HALL.
SO HERE'S WHERE WE'VE BEEN GOING THE LAST COUPLE OF YEARS.
SO IN 2016, WE REALIZED THAT THE PROJECT ASSISTANCE CENTER WAS RUNNING ON ABOUT FOUR DIFFERENT HOMEGROWN SYSTEMS OF VARIOUS
[02:15:01]
COMPLEXITY.UH, SOME WERE AMAZINGLY DETAILED AND WE'RE DOING A LOT OF GREAT WORK.
OTHERS WERE SIMPLE SPREADSHEETS AND THERE WAS A LOT OF ADMINISTRATIVE TIME AND THERE WAS A LOT OF PEOPLE MISSING OUT ON THE COMMONALITIES BETWEEN THESE DIFFERENT WORKFLOWS.
SO EVEN THOUGH IT WAS A ONE STOP SHOP TO ARE PEOPLE PULLING PERMITS AND PLANS, IT WASN'T NECESSARILY A ONE STOP SHOP IN THE BACK OFFICE WHERE WE HAD TO MAKE THESE THINGS HAPPEN AND MAKE SURE THAT WE WERE COMING TO A COMPREHENSIVE DECISION.
UM, IN 2016, WE PUT TOGETHER A GROUP THAT, UH, LOOKED AT THIS PROBLEM AND LOOKED AT COMMERCIAL OFF THE SHELF SOFTWARE.
UH, WE TOOK THAT RECOMMENDATION FROM THAT COMMITTEE TO A COUNCIL AND YOU GUYS APPROVED IT IN 2017.
WE KICKED OFF IN 2018 AND SINCE THEN, UH, FOR, UH, COMING UP ON TWO YEARS STRAIGHT, WE HAVE LOCKED THESE GREAT PEOPLE IN ROOMS AND, UH, GOTTEN ALL THE KNOWLEDGE OUT OF THEIR BRAINS AND HAVE GONE LIVE WITH A SYSTEM.
SO WE ACTUALLY WENT FIRST, UH, WITH OUR BACK OFFICE UPGRADE.
THIS WENT LIVE IN MID OCTOBER, UH, AND FOCUSED ON STAFF WHO WORK, UH, THE PUBLIC'S ASSISTANCE CENTER COUNTER, UH, INSPECTIONS NOW ARE DONE ON IPADS AND PEOPLE CAN GET INSTANTANEOUS RESULTS AFTER THE INSPECTOR LEAVES THEIR SITE.
SO AGAIN, WITH IPADS TAKING PICTURES AND UH, PUTTING IN NOTES.
WE ACTUALLY HAD, UH, A TOPIC COME UP AT OUR MEETING LAST WEEK WHERE SOMEONE HAD CALLED IN TO FIGURE OUT HOW TO FIX THEIR CODE VIOLATION BEFORE THE INSPECTOR HAD EVEN GOTTEN INTO THE OFFICE.
AND THAT'S EXACTLY THE SORT OF THING WE WERE LOOKING TO DO.
WE'RE ALSO EXPANDING OUR USE OF ELECTRONIC PLAN REVIEW AND THAT REALLY PLAYS INTO THE IDEA OF AS THE WORLD GOES MORE ELECTRONIC, SO SHOULD PERMIT AND PLAN REVIEW.
UM, AND WHERE WE WANT TO GO IS TAKE THAT ELECTRONIC THEME ONE STEP FURTHER WITH OUR PROJECT ASSISTANT CENTER ONLINE.
WE LIKE POCCO CAUSE THE IDEA IS WHAT IS BETTER THAN A ONE STOP SHOP NOT HAVING TO COME TO THE SHOP AT ALL.
NOW PAKO IS NOT ABOUT COMPLETELY REPLACING THE PACK.
THE PAKO IS ABOUT, OR THOSE ROUTINE.
I'M A PERMIT RUNNER, I'M DOING SOLAR, YOU KNOW, SEVEN SOLAR PROJECTS A WEEK OR WHATEVER.
AND THAT ALLOWS STAFF AT THE PAC TO THEN REALLY CONCENTRATE ON, I'VE NEVER DONE THIS BEFORE, WHAT DO YOU THINK ABOUT THIS? AND SO FORTH.
SO WHAT WE ARE DOING WITH PACOS, WE'RE PUTTING THE MOST COMMON FUNCTIONS THAT CAN BE AUTOMATED ONLINE.
WE'VE ADDED A TON OF NOTIFICATIONS AND MESSAGING SO THAT PEOPLE CAN SEE WHAT'S GOING ON AND THE PROJECT CONTACTS THEN HAVE COMPLETE VISIBILITY INTO WHAT THE PROCESS IS AND EVEN WHERE THEY'RE AT IN THE PROCESS.
SO THIS WAS A UNIQUE IMPLEMENTATION.
UH, FOR THOSE OF YOU THAT WERE AROUND IN 2016, THERE WASN'T A TON OF MONEY SITTING AROUND.
AND MOVING TO A COMMERCIAL OFF THE SHELF SYSTEM WAS A BIG, BIG EXPENDITURE, A BIG DECISION TO MOVE FORWARD WITH.
AND WHAT THIS TEAM DID WAS WE TOOK ON DOING WHAT'S CALLED A SELF IMPLEMENTATION.
SO NORMALLY YOU HIRE A CONSULTANT TO CONFIGURE AND SET UP THE SYSTEM.
IT COMES VERY BARE BONES AND YOU HAVE TO PUT ALL OF YOUR PROCESSES IN SO YOU NOT ONLY HAVE TO SPEND THE TIME, UH, PARLAYING TO THE CONSULTANT WHAT THOSE PROCESSES ARE, YOU THEN HAVE TO DOUBLE CHECK THEIR WORK ON THE BACKSIDE AND IT COSTS A LOT OF MONEY.
WHAT WE FOUND WITH THIS GROUP IS THEY KNOW THEIR STUFF, THEY KNOW WHAT THEY DO, THEY KNOW WHY THEY DO IT, AND THEY HAD SOME GREAT IDEAS ABOUT WHERE THEY WANTED TO TAKE IT.
AND SO WE TOOK A RISK AND WHAT WE DID WAS WE SIGNED A CONTRACT WITH TYLER TECHNOLOGIES WITH VERY LOW SERVICES.
BASICALLY WHAT TYLER DID WAS THEY CAME IN AND THEY TAUGHT US HOW TO CONFIGURE A SYSTEM.
NOW THAT'S SOMETHING THAT I WOULD IN MY JOB DESCRIPTION, BUT THESE ARE CUSTOMER SERVICE REPS, THESE ARE ENGINEERS, THESE ARE PLANNERS.
IT WAS A BIG UNDERTAKING, ESPECIALLY BECAUSE THE FIRST THING WE DID WHEN WE PUT THEM IN THE ROOM WAS WE SAID, HERE'S VIZIO.
LET'S LEARN HOW TO DO VIZIO AND LET'S FIGURE OUT WHAT YOUR PROCESS IS.
WELL, FOR CONDITIONAL USE PERMIT, THERE'S ABOUT 80 STEPS IN THERE AND INPUTS AND SO FORTH.
THIS WAS A BIG THING, BUT THE REASON WHY WE WANTED TO DO IT WAS NOT ONLY THE MASSIVE COST SAVINGS
[02:20:01]
UPFRONT, BUT BY LEARNING HOW TO CONFIGURE THIS SYSTEM, WE WILL CONTINUE TO REAP THE BENEFITS OF TUNING AND TWEAKING AND IMPLEMENTING NEW THINGS FOR YEARS TO COME.THE OTHER THING WE LOOKED AT IS, OKAY, SO WE CUT SOME, SOME FUNDS ON THE FRONT END.
WE MADE IT MORE VIABLE FOR UPFRONT ONE-TIME COSTS.
NOW WE WANT TO LOOK AT SUSTAINABLE FUNDING.
SO, UH, THE COUNCIL APPROVED A TECHNOLOGY MAINTENANCE FEE OF ABOUT $25, UH, PER PLAN OR PERMIT, AND THAT SUPPORTS OUR ONGOING COSTS.
SO WE TOOK HOMEGROWN LITTLE SYSTEMS, WE TIGHTENED UP, UH, EVERYTHING.
AND WHILE THESE PEOPLE WERE STILL DOING THEIR JOBS AND MAINTAINING THEIR SERVICE LEVELS, WE WERE PICKING THEIR BRAINS AND CONFIGURING THE SYSTEM.
SO I WANT TO TALK ABOUT THE PEOPLE THAT MADE IT HAPPEN.
EXECUTIVE SPONSORS, THESE ARE, UH, A DIRECTOR OF COMMUNITY DEVELOPMENT, TONY CHUTE, MYSELF AND DIRK EPPERSON, WHO'S BEEN FRONT AND CENTER HERE THIS WEEK.
OUR JOB WAS SIMPLY TO GIVE THE TEAM WHAT THEY NEEDED TO KEEP THE PROJECT MOVING, TO MAKE SURE THEY HAD THE RESOURCES, THE REAL PLAYERS HERE WHERE OUR ENERGY OF CHAMPIONS, THESE PEOPLE HAVE COMMITTED A MINIMUM OF TWO HOURS A WEEK FOR THE LAST TWO YEARS AND MANY OF THEM HAVE DONE FOUR TO SIX HOURS.
SO I JUST WANT TO SHOW YOU WHO THESE PEOPLE ARE AND MANY OF THEM ARE IN THE BACK RIGHT HERE.
AND I WANT TO MAKE SURE THAT, UH, WE ALL RECOGNIZE THEM.
NOW, THAT WAS A GREAT GROUP OF PEOPLE.
BUT I ALSO WANT TO TALK ABOUT OUR SUBJECT MATTER EXPERTS BECAUSE WE, IF WE DIDN'T KNOW THE ANSWER, WE FOUND THE ANSWER.
SO HERE'S OUR SUBJECT MATTER EXPERTS.
OUR CUSTOMER SERVICE REPS, INSPECTORS, UH, CUSTOMER SERVICE, UH, PLANNING, PUBLIC WORKS, THEY'RE ALL OVER THE PLACE.
AND WHAT THEY WERE DOING WAS MAKING SURE THAT ALL THESE LITTLE BITS AND PIECES THAT FROM AN INSPECTION TO A REVIEW, ALL OF THAT WAS TUNED IN AND GOING WHERE IT NEEDED TO GO.
AND EVERYBODY HAD THE INFORMATION BECAUSE BEFORE WE DIDN'T KNOW, WE DIDN'T KNOW WHAT THIS ARM WAS DOING, WHAT THIS WAS DOING, IT ALSO HELPED US TO MAKE A LINEAR PROCESS AND TURN IT INTO A MULTIFACETED PROCESS WHERE THINGS COULD GO IN PARALLEL PLANNING CAN BE DOING THEIR WORK WHILE ENGINEERING IS DOING THEIRS AS WELL.
SO WE'RE SPEEDING UP RESPONSE TIMES WE GO.
SO NOW I WANT TO SHOW YOU THE PRODUCT.
UM, THERE'S KIND OF TWO LEVELS OF POCCO AS A GENERAL PERSON WITHOUT A LOGIN, THERE'S SOME REALLY GREAT INFORMATION THAT YOU CAN GO AND LOOK THINGS UP AND FIND INFORMATION OUT WITHOUT EVEN HAVING A LOGIN.
AND YES, IT'S ALL RESPONSIVE DESIGN COUNCILMEN GO.
WE HAVE THE MAP AND FROM A MAP YOU CAN PUT IN AN ADDRESS.
YOU CAN SEE, YOU DON'T GET TO SEE THE DETAILS, BUT YOU CAN SEE ON AN ADDRESS IF SOMEONE PULLED A PERMIT, IF THERE WAS A CODE CASE, WHAT WHEN IT WAS AND WHAT THE FINDING WAS, WAS IT UNFOUNDED, IS IT CLOSED, IS IT TAKEN CARE OF AND SO FORTH.
UH, YOU CAN SEE PERMITS BY PARCEL.
WE ALSO LINKED TO OUR PUBLIC RECORDS PORTAL BECAUSE WHAT WE'RE TRYING TO DO IS WITH ALL OF OUR BUILDING PERMITS GOING ONLINE LAST YEAR, WE WANT PEOPLE TO BE DIGGING FOR THIS INFORMATION AND DOING IT FROM HOME AND SAVING COMING INTO THE PACK FOR THE HARD QUESTIONS, THE THINGS THAT THEY JUST CAN'T FIND.
UH, WE LINKED TO OUR BUSINESS LICENSE ONLINE PORTAL THAT WENT UH, UP IN I BELIEVE 2018 SO THAT PEOPLE, IF YOU'RE A CONTRACTOR IN THE CITY, YOU ARE GOING TO NEED A BUSINESS LICENSE.
IF YOU DON'T HAVE ONE, YOU CAN DO IT AT THE SAME KIOSK WHERE WE'RE SIGNING YOU UP FOR PAKO AND THE FORMS, THESE, THERE'S A LOT OF FORMS AND THERE'S A LOT OF GREAT INFORMATION.
WE TRIED TO MAKE IT VERY EASY FOR PEOPLE TO FIND OUT SO THAT THEY KNOW WHAT'S WHAT TO LOOK AT.
IF THEY'RE BUILDING A DECK OR THEY'RE DOING SOLAR OR A PATIO COVER OR ANYTHING LIKE THAT.
NOW HERE'S PAKO ONCE YOU LOG IN, OKAY, I NOW HAVE A DASHBOARD WITH ALL MY PERMITS, ALL MY PLANS, WHAT THEIR STATUSES ARE.
I CAN SEE THAT THIS ONE PERMIT IS 42% COMPLETE AND HERE'S THE STEPS WE'RE STILL WAITING FOR.
SO I CAN ALSO SEE IF THERE'S FEES THAT NEED TO BE PAID AND I CAN SCHEDULE MY INSPECTIONS FOR INSPECTIONS.
I CAN SAY WHICH ONES I'M READY FOR BECAUSE NOT EVERY INSPECTIONS THE SAME.
I CAN SEE WHAT WAS PAID AND I CAN GO INTO MY SHOPPING CART AND PAY FOR MY PERMITS RIGHT THEN AND THERE.
AND IF I DO THAT, ONCE THE PERMIT IS ISSUED, I JUST GET AN EMAIL, I LOG INTO PAKO AND ALL MY DOCUMENTS ARE THERE.
[02:25:01]
HELPING US QUITE A BIT WITH ONLINE PLAN REVIEW DOCUMENTS AND PLANS CAN BE UPLOADED.THEY'RE REVIEWED COMMENTS AND CORRECTIONS GO BACK TO POCCO.
THEY CAN DOWNLOAD A REPORT OF THEM, THEY CAN SEE THE MARKUP, THEY HAVE ALL THAT INFORMATION, THEY'RE STILL WELCOME TO CALL US.
IF THERE'S A QUESTION, THEY'RE STILL WELCOME TO COME IN AND LOOK THROUGH IT TOGETHER.
BUT FOR THOSE STRAIGHTFORWARD THINGS, THERE ISN'T A QUESTION OR THERE ISN'T A CONCERN, OH YEAH, I CAN MAKE THAT CHANGE UPLOADED AGAIN AND THE PROCESS KEEPS MOVING ON.
WE'RE ALSO STARTING TO TAKE APPLICATIONS VIA POCCO, SO THESE ARE THE FIRST FIVE CATEGORIES OF PERMITS AND PLANS.
WE STARTED WITH THE EASIEST AND WE ALSO STARTED WITH THE MOST COMMON SOLAR PANELS BEING A HUGE AMOUNT OF BUSINESS FOR US RIGHT NOW.
AND THOSE PEOPLE KNOW THEIR STUFF.
THEY DO A LOT OF THEM, THEY KNOW THE PERMITTING PROCESS, THEY KNOW WHAT'S NEEDED.
BUT WHAT WE'RE LOOKING AT IS BETWEEN NOW AND A SUMMER, CONTINUALLY EVERY COUPLE OF WEEKS, ADDING NEW PERMIT AND PLAN TYPES IN SOME.
I MEAN IF YOU'RE BUILDING A MAIN RANCH OR A HUGE SUBDIVISION, PAKO MAY NOT BE APPROPRIATE FOR APPLICATION.
IT'S GREAT FOR KNOWING WHERE THINGS ARE AT AFTER YOU APPLY AND SO WE HANDLE THAT AS WELL.
YOU CAN COME IN, THEY'LL MEET WITH YOU, THEY'LL TELL YOU WHAT YOU NEED.
NO ONE LEAVES THE PROJECT ASSISTANCE CENTER WITHOUT APOCCO ACCOUNT.
AND WE DO THAT BECAUSE WE MAKE SURE THAT YOU CAN THEN GO AND CHECK YOUR STATUS AS YOU GO.
SO WHAT ARE NEXT STEPS? MORE OPTIONS TO APPLY ONLINE.
PAKO IS ALSO GOING TO AND ENTER GOV.
THE BACK OFFICE SYSTEM IS ALSO GOING TO INTERFACE WITH OUR NEW CITY APP FOR CODE CASES.
SO AS REQUESTS COME IN, IF IT ELEVATES TO BEING A FOUNDED CODE CASE, IT WILL THEN GO INTO THIS SYSTEM AND THAT DATA WILL ROLL IN TOGETHER.
WELL VERY COMPREHENSIVE REPORT.
ANY QUESTIONS WITH THE COUNCIL? STEVE? SO TODAY PEOPLE COME TO THE PACK AT THE COUNTER AND PAY FOR THINGS.
DO YOU ANTICIPATE I'M GOING WITH CREDIT CARD FEES IS WHERE I'M GOING.
AND SO DO YOU THINK WE'LL SEE AN INCREASE IN CREDIT CARD FEES BECAUSE PEOPLE WILL PAY ONLINE MORE THAN THEY'RE PAYING AT THE COUNTER? SO WHAT WE HAVE FOUND IS THERE ARE, AND IT REALLY DEPENDS ON THE TYPES OF PROJECTS, THERE ARE PEOPLE THAT WE GET VERY LITTLE CASH.
THERE ARE PEOPLE WHO LIKE TO PLAY PAY BY CHECK AND THEY ARE STILL GOING TO COME IN AND THEY'RE USUALLY THE TYPES OF PROJECTS THAT WARRANT COMING IN ANYWAYS.
UH, RIGHT NOW TO PAY BY A CREDIT CARD, YOU HAVE TO COME IN, YOU'VE GOT TO GO TO FINANCE, YOU PAY BY CREDIT CARD, YOU PRINT IT OUT, YOU SHOW YOUR RECEIPT, AT LEAST WITH POCCO, WHAT YOU'RE ABLE TO DO IS DO ALL OF THAT AND NOT HAVE TO COME IN AND DO THAT RUNNING AROUND.
UH, THE FEES ARE THE SAME EXCEPT PAKO COSTS AN EXTRA 10 CENTS PER TRANSACTION, WHICH THE CITY THEN ABSORBS.
SO WHAT WE'RE ASSUMING IS THERE MIGHT BE A SLIGHT INCREASE IN CREDIT CARDS, BUT PEOPLE WERE PAYING WITH CREDIT CARDS ANYWAYS.
AND WE DON'T REALLY SEE THAT AS A SIGNIFICANT, REALLY MEANINGFUL CHANGE.
I THINK THIS IS PEOPLE WHO, WHO DEAL WITH OPERATIONS OR, UM, UH, STEPS ALONG THINGS.
THEY, THEY LOOK AT HOW MANY TIMES YOU HAVE TO TOUCH SOMETHING.
AND THE MORE TIMES YOU TOUCH SOMETHING MORE EXPENSIVE, IT IS.
AND, AND THIS IS REALLY BETTER COMMUNICATION, WHICH REDUCES THE NUMBER OF TOUCHES OR THE NUMBER OF PHONE CALLS.
WE'LL SAY, WELL, DID YOU, OH, YOU'VE GOT TO TALK TO SO-AND-SO, YOU GOTTA TALK TO SO-AND-SO.
AND IN THE END, FOR ANYBODY WHO WANTS TO, TO DO A PROJECT, TIME IS MONEY.
AND SO THIS IS, UH, I'M OVERWHELMED WITH THAT.
THE SKILL THAT YOU'RE ABLE TO TAKE THIS ONLINE AND TO SAVE PEOPLE TIME BY ANSWERING QUESTIONS SO THEY DON'T HAVE TO CALL AND SAY, WHO DO I TALK TO ABOUT THIS OR WHAT'S THE STATUS OF THIS BRILLIANT WORK? I, I WOULD LIKE TO THINK EL CAHONE IS THE LEADER IN THE PACK IN THIS AREA.
UH, BUT WE'RE THE LEADER IN THE PAKO PACKO ON THIS AREA.
WE, UM, WE ARE CONSIDERED A LEADER IN SELF IMPLEMENTATION.
WE WERE THE MOST SUCCESSFUL SELF IMPLEMENTATION THAT TYLER TECHNOLOGIES HAS DONE NATIONALLY.
UM, BUT THAT COULDN'T BE WITHOUT ALL THESE GREAT PEOPLE HERE.
SO IF WE CAN TAKE A MINUTE AND JUST LET THEM STAND UP.
I REALLY THINK THEY DESERVE IT.
ALL RIGHT, YOU'RE GOING TO PUT ME ON IT.
WELL WE'LL GO LEFT TO RIGHT AND UP AND DOWN.
[02:30:01]
WE'VE GOT CHRISTINE JABARA.SHE IS A INNER GOV CHAMPION FOR PUBLIC WORKS.
WE HAVE TIM WILLIAMS, HE IS OUR GIS EXPERT AND OUR GOV CHAMPION PUBLIC WORKS.
HE IS THE GUY WHO REALLY DREAMED UP HOW EL CAHONE DOES PERMITS AND HE'S AN INNER GOV CHAMPION.
MELISSA DIVINE FROM PLANNING AND GROVE CHAMPION.
LAURA JUICE, ZAC CUSTOMER SERVICE REP FROM COMMUNITY DEVELOPMENT.
SHE'S ALSO BEEN UPDATING OUR WEBSITE TO MAKE SURE THAT PEOPLE KNOW ABOUT PAKO.
HE IS FROM OUR PLANNING DEPARTMENT.
UH, THEY GAVE AMAZING FEEDBACK IN HOW TO DIAL IN A VERY COMPLICATED SYSTEM.
WE'VE GOT ROXANNE GUZMAN, CUSTOMER SERVICE REP FROM THE BUILDING DEPARTMENT.
SHE IS ONE OF THE KEY FACES THAT YOU MEET WHEN YOU GO UP TO THE PACK.
SHE TOO IS A KEY PLAYER IN THE PACK AND WORKING THE COUNTER.
UM, AND WE HAVE PETER LING I WANT TO, I WAS GOING WITH PETE, HE'S OUR NEWEST MEMBER.
YOU'VE BEEN HERE WHAT A MONTH PLAN REVIEWER FOR COMMUNITY DEVELOPMENT.
SO HE'S DOING ALL THAT ELECTRONIC PLAN REVIEW.
WE TRAINED HIM IN ABOUT A HALF A DAY AND HE WAS OFTEN RUNNING.
AND THEN HIGH MAY CAMPOS, HE'S ONE OF OUR ENTER GOV CHAMPIONS FROM PUBLIC WORKS.
HE DOES A LOT OF WORK WITH ENCROACHMENTS.
RIGHT? DID I GET EVERYBODY? YEAH.
YOU KNOW WHAT'S AMAZING ABOUT THIS AND IN MOST THINGS IN BUSINESS, UH, THERE'S PRICE, QUALITY AND SPEED.
YOU CAN HAVE TWO BUT YOU CAN NEVER HAVE ALL THREE IF YOU WANT IT FAST.
IF YOU WANT GOOD QUALITY, YOU'RE NOT GOING TO GET A LOW PRICE, YOU'RE GOING TO PAY FOR IT.
IN THE PLANNING DEPARTMENT, I BELIEVE OUR, OUR PERMIT FEES FOR SINGLE FAMILY RESIDENCE FOR INSTANCE, ARE THE SECOND LOWEST AMONG THE ALL THE CITIES IN THE COUNTY.
SO WE DO GET HIGH QUALITY BECAUSE I KNOW YOU CAN TURN AROUND A PERMIT IN 60 DAYS OR LESS ON AN ADU 57 DAYS.
I'VE HEARD IN SOME CASES YOU GET THE QUALITY AND WE GET THE LOW COST AND WE GET THE SPEED.
I, THIS IS ONE OF THOSE RARE CASES WHERE YOU GET ALL THREE.
BOB, I'M GLAD THAT YOU BROUGHT THIS TO US TODAY TO SHOW US HOW EFFICIENT YOU ARE.
BUT I, I'M IN ELKHORN ROTARY AND I USUALLY SIT NEXT TO HAROLD BROWN FROM ELK OWN TRANSITIONAL LIVING CENTER AND HE IS ASKED ME FOR THE LAST SEVERAL MONTHS HOW COME IT'S TAKING SO LONG FOR OUR CITY TO GET THIS PERMIT SO THAT THEY CAN START ON THIS BUILDING TO GET THEIR FACILITY COMPLETED.
AND IF PAKO IS SO WONDERFUL, HOW COME IT HASN'T WORKED IN THAT SITUATION? WE'RE JUST GOING ALIVE WITH THIS IN THE LAST TWO WEEKS.
UM, AS FAR AS THAT, I'M THE IT GIRL.
I WOULD DEFER TO, UH, GRAHAM OR TONY CHUTE FROM COMMUNITY DEVELOPMENT.
I CAN'T SPEAK TO THE TIMING OF A PARTICULAR PERMIT.
UM, ARE THERE GOING TO BE ANY, UM, METRICS USED TO GET A SENSE OF HOW EFFICIENT, HOW MUCH THIS IMPROVES THE PROCESS, YOU KNOW, WILL THERE BE A FORMS ASKING PEOPLE THEIR SATISFACTION? UM, WILL THERE BE WAYS TO TRACK HOW LONG A PERMIT TAKES OR ALL THE VARIOUS METRICS TO SEE WHETHER THIS IS WORKING AS WELL AS WE THINK IT'S GOING TO WORK OR, OR NOT? YEAH.
SO IN THE BACK OFFICE, AS FAR AS A STATISTICAL DATA FOR PERFORMANCE, UH, ENTER GOV, WHICH IS THE BACKEND SYSTEM PROVIDES OUT OF THE BOX, UH, THE PERFORMANCE STATS AND COMMUNITY DEVELOPMENT AND TONY CHUTE SPECIFICALLY HAD A HIGH REQUIREMENT FOR REPORTS.
WE STARTED ACTUALLY REPORTING OUT MONTH END STATISTICS AT THE END OF DECEMBER AFTER GOING LIVE ONLY IN OCTOBER 15TH.
UM, AS FAR AS, UH, SATISFACTION SURVEYS, UH, I THINK IT'S A GREAT IDEA.
WE'VE BEEN DOING IT INFORMALLY.
WE PICKED A FEW OF USERS THAT WE'VE WORKED WITH IN THE PAST, SO WE THOUGHT PAKO WOULD BE A GOOD FIT AND THEY WERE PROVIDING US FEEDBACK ON HOW TO CHANGE IT AND HOW TO MAKE IT BETTER.
SO WE'VE DONE THAT AT A SMALL SCALE.
I THINK AFTER WE GET UP AND RUNNING AND REALLY STABLE, I THINK A SURVEY IS A GREAT IDEA AND I THINK OUR MESSAGE IS HERE IS YOU DON'T HAVE TO USE PAKO IF YOU DON'T WANT TO, YOU CAN COME IN AND PAY, YOU CAN COME IN AND SCHEDULE YOUR INSPECTION.
WE'RE TRYING TO MAKE IT EASY ENOUGH THAT WE'RE NOT WASTING YOUR TIME AND THAT TRAVEL TIME IN DOING SO.
YEAH, I THINK KEVIN IS A SATISFACTION SURVEY WOULD BE SOMETHING
[02:35:01]
THAT WOULD BE VALUABLE TO ME AND I'M SURE TO THE CITY AS WELL.ANY MORE QUESTIONS? THANK YOU SO MUCH.
UM, I KNOW YOU PUT A LOT OF TIME AND EFFORT INTO THIS AND UH, WE DO VERY MUCH APPRECIATE IT AND I, I CAN TELL YOU JUST ON A PERSONAL NOTE, I TALKED TO A LOT OF PEOPLE AND UM, I WOULD SAY 95, MAYBE HIGHER PERCENT OF THE PEOPLE THAT TALKED TO ABOUT, ABOUT THE PERMITTING PROCESS AND THE BUILDING PROCESS AND ALL THE THINGS YOU DO SAY
I HEAR THAT OVER AND OVER AND OVER AGAIN.
I HAVE FOR QUITE A WHILE NOW, SO CONGRATULATIONS AND THANK YOU VERY MUCH BECAUSE BOY, IT WOULD BE TERRIBLE IF IT WERE THE OTHER WAY.
IF ONLY 5% LIKED IT THERE AT 95% WERE ANGRY WITH ME.
I, I PROBABLY NEVER BE ABLE TO EAT BREAKFAST BECAUSE PEOPLE KEEP COMING UP TO MY TABLE AND TELLING ME HOW UNHAPPY THEY WERE, BUT IT'S THE OPPOSITE, SO THANK YOU VERY MUCH.
OKAY, THEN I'M VERY SPEAKER CARDS WITH THIS.
IS THERE ANY FURTHER DISCUSSION? SOMEBODY LIKE TO PROCEED WITH A MOTION.
I THINK IT'S A PRETTY OPEN AND SHUT.
I THINK WE JUST NEED TO RECEIVE THE REPORT.
OH, THERE'S ACTUALLY A MOTION THAT NEEDS TO BE EXCEPT THE REPORT.
SO WOULD YOU MAKE A BOOK? WOULD THAT BE A MOTION? AND THEN BOB TOOK SOMETHING TO RECEIVE THE REPORT.
MOTION CARRIES BY UNANIMOUS VOTE.
GIVE US AN UPDATE ON HOW THINGS ARE GOING AND HOW IT'S HOW WE'RE RECEIVED AT ALL IS, THAT'D BE GREAT.
ITEM 11 IS THE LEGISLATIVE REPORT.
I'LL ASK OUR CITY ASSISTANT, CITY MANAGER TO TELL US ALL ABOUT THIS.
MR MAYOR, I THINK WE'RE ON NUMBER 10.
ARE WE RELYING OKAY, YOU GET MY ITEM? I WAS JUST, I WAS JUST AFTER THAT HORRIBLE MESS UP OR EARLIER ABOUT FORGETTING TO, ALL RIGHT.
I WAS SITTING, IF YOU WERE PAYING ATTENTION,
[10. Opportunity Zones and Enhanced Infrastructure Financing Districts RECOMMENDATION: That the City Council receives a report about Opportunity Zones and Enhanced Infrastructure Financing Districts, and provides direction.]
SORRY, ITEM 10 IS ABOUT OPPORTUNITY ZONES AND THE INFRASTRUCTURE FINANCING DISTRICTS AND GRANT, WOULD YOU PLEASE TELL US ALL ABOUT THIS? THANK YOU.AND I'M NOT GOING TO SPEAK VERY LONG ACTUALLY.
I'M GOING TO TURN IT OVER TO MR COSBY IN JUST A SECOND.
BUT EARLIER IN 2019, THE CITY ENTERED INTO AN AGREEMENT WITH COSMETIC COMPANIES AND COSMETIC REAL ESTATE SERVICES TO STUDY OPPORTUNITY ZONES THAT EXIST IN THE CITY OF EL CAHONE AS WELL AS ENHANCED INFRASTRUCTURE FINANCING DISTRICTS.
YOU'RE GOING TO HEAR THE ACRONYM EIF D, UM, THROUGHOUT THE PRESENTATION.
SPECIFICALLY, WE WANTED TO LOOK AT HOW THESE TWO TOOLS COULD ATTRACT INVESTMENT AND DEVELOPMENT INTO OUR CITY WHERE OTHER CITIES DON'T HAVE THESE TOOLS.
UM, CAN THAT MAKE A DIFFERENCE? THE FIRST PHASE OF THE WORK IS COMPLETE.
MR LARRY CAUSEMAN IS HERE TO PRESENT THE FINDINGS OF THOSE STUDIES AFTER HIS PRESENTATION.
THERE'S A BIT OF A PHASE TWO OF WHAT DO WE DO WITH THIS INFORMATION? DO WE TAKE IT TO THE NEXT LEVEL AS WE START MARKETING THESE SITES, DO WE START AN AGGRESSIVE IMPLEMENTATION PROGRAM? AND THAT WILL BE SORT OF THE REQUEST AT THE TERMINATION AND LOOKING FOR COUNCIL FEEDBACK ON, ON WHAT TO DO WITH THIS.
WITH THAT, I'D LIKE TO INTRODUCE THE CITY COUNCIL TO MR LARRY
MY NAME IS LARRY COSMO PRESIDENT, CEO OF COSMETIC COMPANIES.
WE ARE A FIRM THAT SPECIALIZES IN THREE THINGS, ECONOMIC DEVELOPMENT, REAL ESTATE AND PUBLIC FINANCE.
WE'VE HAD THE PRIVILEGE OF WORKING WITH THE CITY OF EL CAHONE AND YOUR MANAGEMENT TEAM FOR ABOUT THE LAST EIGHT MONTHS ON TWO KEY ISSUES.
ONE IS OPPORTUNITIES ZONES, WHICH ARE, IS A RELATIVELY NEW TAX PROGRAM THAT CAME OUT OF THE TAX CUT AND JOBS ACT AND DECEMBER, 2017 AND THE OTHER IS ENHANCED INFRASTRUCTURE FINANCING DISTRICTS WHICH CAME OUT OF THE LEGISLATURE AFTER REDEVELOPMENT WAS DEMISED OR JUST DISSEMBLED BACK IN 2012 THE CONVERGENCE OF THESE TWO TOOLS ARE WHAT WE'RE GOING TO TALK ABOUT AND IT'S INTERESTING THAT WE'RE FOLLOWING PACKO BECAUSE I THINK THIS IS A PROGRAM AT THE VERY FRONT END OF IMPLEMENTATION.
IT'S KIND OF YOUR INTAKE SYSTEM TO ALL THOSE GREAT PROJECTS AND INVESTMENT PROGRAMS. THEY CAN OCCUR IN ALCOHOL.
AND WE HAVE A TONIGHT ALSO A BRIAN MONCRIEF SENIOR VICE PRESIDENT FROM COSMATI REALTY.
HE'S ALSO WORKED ON, THIS ASSIGNMENT IS AVAILABLE TO ANSWER ANY QUESTIONS.
UH, WE'VE BEEN IN BUSINESS 33 YEARS.
UH, SO I HAVEN'T BEEN AT THE DAY AS FOR A WHILE THAT I HAD BEEN AN INTERIM CITY MANAGER OVER THE YEARS AS WELL.
UNFORTUNATELY, THIS PRESENTATION HAS A SIGNIFICANT AMOUNT OF, UH, INFORMATION RELATED TO THESE TWO
[02:40:01]
PARTICULAR PRODUCT LINES, OPPORTUNITIES, ZONES, ANDBUT I'LL TRY AND MAKE IT AS QUICK, PAINFUL AND SMOOTH, PAINLESS AND SMOOTH AS POSSIBLE.
I THINK IT DOES HAVE SOME VERY GOOD NOTIONS FOR THE CITY.
IN TERMS OF WHAT YOU COULD DO FOR IMMEDIATE, UH, AN IMMEDIATE RESPONSE PROGRAM FOR ECONOMIC DEVELOPMENT, UH, PARTICULARLY IN YOUR DOWNTOWN AREA.
FIRST OF ALL, CAN I JUST ASK THE COUNCIL HOW FAMILIAR, LET'S SAY YOU ARE WITH OPPORTUNITIES ZONES IN FTS.
IS IT LOW, MEDIUM, HIGH? WHAT DO YOU, WHAT DO YOU THINK? LOW, MEDIUM TO LOW.
IN THAT CASE, LET ME TAKE OUT THE 200 PAGE POWERPOINT.
UH, SO WE WERE ENGAGED TO TAKE A LOOK AT OPPORTUNITIES, ZONES, AND ALSO, I'LL EXPLAIN THESE IN A MINUTE.
SO JUST BE A LITTLE BIT PATIENT.
WE WERE, WE WERE LOOKING AT THESE OPPORTUNITIES ZONES, WHICH EXISTS.
IT'S NOT THAT YOU REALLY GOT TO CREATE THEM.
THEY WERE CREATED BY THE FEDERAL GOVERNMENT.
WE SELECTED ABOUT 25% OF THE OF THE BASIC LOW INCOME CENSUS TRACKS THAT ALREADY EXISTED FOR YEARS AND YEARS AND HAD BEEN USED FOR PROGRAMS LIKE ENTERPRISE ZONES.
WE GAVE THAT 25% QUOTION TO ALL THE STATES AND THEY ESSENTIALLY THROUGH THE GOVERNOR'S OFFICE REACHED OUT TO LOCALITIES IN 2017 TO SELECT THESE AREAS.
FOR MOST OF US IN LOCAL GOVERNMENT, WE PROBABLY HAVE 60 COUNTY AND CITY CLIENTS.
MOST OF US REALLY WEREN'T THAT AWARE THAT THIS PROGRAM WAS GOING ON.
IT HAPPENED RATHER QUICKLY AND WE ENDED UP WITH OPPORTUNITIES ZONES ALMOST AS A SURPRISE.
I'M NOT SAYING THAT THAT'S THE CASE HERE IN OKLAHOMA, BUT FOR MANY OF OUR CLIENTS, THE ADVENT OR THE DROP OFF OF AN O Z AT OUR DOORSTEP WAS ACTUALLY A SURPRISE.
SO WE WERE ASKED TO TAKE A LOOK AT THE FIVE OPPORTUNITIES ZONE AREAS THAT YOU HAVE IN YOUR CITY AND THEN TAKE A LOOK AT SOME PUBLIC FINANCING TOOLS AND ECONOMIC DEVELOPMENT TOOLS THAT COULD BE BLENDED WITH THOSE BECAUSE OPPORTUNITIES ZONES REPRESENT KIND OF A ONE TIME OPPORTUNITY TO ENGENDER IN GENDER PRIVATE INVESTMENT IN THIS COMMUNITY UNDER A VERY PRESCRIBED SET OF CIRCUMSTANCES THAT I'LL TALK ABOUT.
THE PROJECTS THAT ARE SELECTED FOR YOUR CONSIDERATION ARE ALL IN THE DOWNTOWN BECAUSE THE OPPORTUNITY ZONES ARE ALL IN THE DOWNTOWN.
NOW THIS IS THE WAY IT LOOKS FOR CALIFORNIA.
CALIFORNIA HAS 879 OPPORTUNITIES ZONES, SO THEY HAVE ABOUT OVER 11% OF THE UH, OPPORTUNITIES ZONES IN THE ENTIRE UNITED STATES.
THEY OPPORTUNITIES ZONES EXIST IN EVERY STATE AND SOME OF THE PROTECTORATES AND TERRITORIES AS WELL.
UH, WE IN SAN DIEGO COUNTY HAVE 47 OR ABOUT 5% OF THE TAKE.
IN CALIFORNIA YOU HAVE FIVE AND YOU'RE FIVE BY THE WAY, ARE PRETTY SIGNIFICANT.
THEY ARE ALL CONTIGUOUS, WHICH GIVES YOU AN ADVANTAGE IN MANY OTHER COMMUNITIES.
WE HAVE BEEN DERA COUNTY, PRETTY BIG COUNTY.
UH, HERE THEY'RE CONCENTRATED, WHICH GIVES YOU THE ABILITY TO HAVE SOME FOCUS AND LUCKILY THEY'RE CONCENTRATED IN THE DOWNTOWN.
YOU HAVE ALMOST A THOUSAND ACRES, 890 CONTIGUOUS ACRES OF OSES.
THE WAY THESE CAME ABOUT WAS LITERALLY IN THE MID OR END OF 2017, SENATOR TIM SCOTT, UH, AND SENATOR CORY BOOKER, PUBLICAN DEMOCRAT RESPECTIVELY CAME TOGETHER AND STARTED TO UNDERSTAND A PROGRAM THAT SEAN PARKER OF FACEBOOK AND NAPSTER FAME HAD PUT TOGETHER THROUGH HIS NONPROFIT, THE EIG, THE ECONOMIC INNOVATION GROUP.
AND THE POINT OF THIS ACT WAS TO ENABLE FREEING UP OF ASSETS ON AMERICAN BALANCE SHEETS.
WE HAD ABOUT SIX POINT OF TIME, THIS WAS APPROVED AT ABOUT SIX POINT $1 TRILLION IN ASSETS AND CAPITAL GAINS ASSETS SITTING ON PUBLIC AND PRIVATE BALANCE SHEETS THROUGHOUT THE COUNTRY.
AND THE WHOLE IDEA WAS TO COME UP WITH A PROGRAM THAT EXEMPTS INVESTMENT FROM CAPITAL GAINS TAX.
SO LONG AS YOU HOLD THE INVESTMENT FOR 10 YEARS, SO LONG AS YOU MAKE THE INVESTMENT IN AN OPPORTUNITY ZONE.
AND SO LONG AS YOU DO IT IN A WAY THAT EFFECTUATES EITHER REAL ESTATE DEVELOPMENT OR THE EXPANSION OF A BUSINESS THAT DIDN'T EXIST IN THAT OPPORTUNITY ZONE BEFORE YOU MADE THE INVESTMENT.
SO IT'S A REAL, IT'S A DRAFTING OF ALL THAT EQUITY TRYING TO BORROW, IF YOU WILL, FROM THE 10 31 EXCHANGE PROGRAM, WHICH IS IF YOU CAN MAKE THE DECISION AFTER DECEMBER 31 2017 TO INVEST IN EITHER A BUSINESS OR A PROPERTY IN AN OPPORTUNITY ZONE, YOU BASICALLY TRANSFER YOUR GAIN.
DON'T PAY ANY TAX TILL 2026 IF YOU HOLD THAT INVESTMENT THROUGH 2026 YOU GET A 10% DISCOUNT ON THE TAX.
YOUR BASIS GOES UP, YOU GET A 10% DISCOUNT IF YOU HOLD THE INVESTMENT FOR 10 YEARS AND THEN HAVE A EXIT
[02:45:01]
SALE, AN EVENT AFTER THAT 10 YEAR HOLD THAT ANY PROFIT RELATED TO THAT GAIN IS ENTIRELY EXEMPT FROM CAPITAL GAINS TAX.SO IT IS A PROGRAM THAT'S NEVER EXISTED REALLY LIKE THIS BEFORE.
IT IS A AN ENTIRE EXCLUSION PROGRAM FROM CAPITAL GAINS UNDER THE RIGHT CIRCUMSTANCES.
AND BECAUSE IT'S SO COMPELLING, THERE'S A LOT OF CAPITAL CHASING TRANSACTIONS.
AND IF YOU CAN LOOK AT THE REPORTS, 7.5 $7 BILLION IN EQUITY RAISED MANY 500 NORTH OF 500 FUNDS LOOKING FOR INVESTMENT OPPORTUNITIES.
NOW HERE'S THE THING ABOUT THESE CENSUS TRACKS.
WHEN THEY WERE CREATED, WE USED A 2010 CENSUS PROGRAM.
SO MANY OF THE CENSUS TRACKS AND OUR 879 IN THE STATE OR THE 47 IN SAN DIEGO ARE FURTHER ALONG IN GENTRIFICATION.
OTHER WORDS, THEY HAD ALREADY STARTED TO MOVE FORWARD.
AND SO THE EARLY INVESTORS OF COURSE HAVE BEEN LOOKING AT A NEW PROGRAM THAT THEY DON'T QUITE UNDERSTAND AND THEY'RE TRYING TO MINIMIZE RISK AND EXPENSE.
AND OF COURSE THEY'RE TRYING TO, UH, EXPAND AS MUCH AS POSSIBLE.
THE TAX BENEFIT, THE WAY THE PROGRAM NOW IS WORKING THROUGH IS THAT REALLY ALL OF THESE FUNDS ARE LOOKING FOR STRIKING OPPORTUNITIES THAT GET THEM THE BENEFIT OF THE TAX, WHICH IS WORTH TWO TO 3% ON A BASIC RETURN.
SO IF YOU HAVE AN 8% RETURN PEGGED, GENERALLY THE TAX BENEFIT UNDER MOST CIRCUMSTANCES, ESPECIALLY FOR A REAL ESTATE DEAL IS ABOUT TWO TO 300 BASIS POINTS MORE SO IT'S PRETTY SIGNIFICANT.
SO THESE FUNDS HAVE BEEN LOOKING FOR INVESTMENTS.
THE KEY THOUGH, THE KEY THOUGH IS HOW DOES A CITY REALLY IDENTIFY THE BEST INVESTMENTS FOR ITSELF AND THEN WALK OUT TO THE COMMUNITY OF INVESTORS AND SAY, LOOK, WE'RE WILLING TO FIGURE OUT HOW WE CAN MAKE THE INVESTMENT OF A NOSY PROGRAM MAKES SENSE FOR OUR CITY AND THE WAY THAT WE SAW THIS FOR ALCOHOL BECAUSE THE ONE INTERESTING THING ABOUT, ONE OF THE INTERESTING THINGS ABOUT OPPORTUNITY ZONES IS THAT THEY'RE ALL VERY DIFFERENT THERE.
THE OPPORTUNITIES WITHIN A ZONE DIFFER FROM PROPERTY TO PROPERTY.
IT COULD BE MULTIFAMILY, IT CAN BE MIXED USE, IT CAN BE RETAIL.
THERE IS NO LIMITATION OTHER THAN SOME SIN BUSINESSES FOR THE TRANSFER OF THAT TAX.
SO IT'S A TOTALLY AN OPEN, IT'S AN OPEN PLAYING FIELD FOR INVESTORS.
WE FOUND THAT THERE IS A ONE ACRE SITE WHICH IS A PARKING LOT SITE ADJACENT TO THE POLICE STATION IN A THREE ACRE COUNTY OWNED PUBLIC PARKING STRUCTURES SITE THAT ARE REALLY, THEY'RE BOTH IN THE OPPORTUNITY ZONE.
THEY'RE BOTH WITHIN THE AMBIT OF YOUR CIVIC CENTER AND THEY MAY BE YOUR BEST OPPORTUNITIES TO REACH OUT TO FUNDS AND GET SOME TAX GENERATING DEVELOPMENT.
THEY'RE USING THE OPPORTUNITY ZONE PROGRAM WHILE SHOWCASING THOSE DEALS.
WE COULD ALSO BE OUT THERE AND TRYING TO IDENTIFY OR SPOTLIGHT OTHER OTHER POSSIBLE DEALS THAT ARE O Z TRANSACTIONS IN ELKA HOMES.
YOU HAVE TO START WITH SOMETHING TO GET YOU OUT INTO THE MARKETPLACE AND THAT WAS PART OF THIS ANALYSIS ONE IS TO UNDERSTAND WHAT'S IN THOSE ZONES.
NUMBER TWO, TO FIGURE OUT WHERE'S YOUR BEST LEVERAGE POINT AND NUMBER THREE TO UNDERSTAND HOW YOU CAN USE THOSE, THOSE SORT OF LEVERAGE POINT INVESTMENTS THAT WE'RE TALKING ABOUT TO ATTRACT ADDITIONAL MONEY.
SO I'M GOING TO SHIFT A LITTLE BIT AND JUST SORT OF BROADEN THE DIALOGUE AND THEN I'M GOING TO COME BACK AND EXPLAIN THE OPPORTUNITIES ZONES IN A SECOND.
THE WAY WE VIEW IT BECAUSE MONT HOW THE ECONOMIC DEVELOPMENT LANDSCAPE PLAYS OUT.
YOU HAVE CERTAIN NUMBER OF TOOLS AS A CITY, ESPECIALLY PARTICULARLY IN CALIFORNIA, HAVE LIMITED NUMBER OF TOOLS IN WHICH YOU CAN BE COMPETITIVE IN TERMS OF ATTRACTING PRIVATE INVESTMENT AND LEVERAGING IT TO YOUR OWN LOCAL BENEFIT.
WE HAVE THREE THINGS REALLY WE CAN USE.
WE HAVE LAND USE AND ZONING ON THE RIGHT WHERE WE CAN CONTROL THE AMOUNT OF DENSITY.
WE HAVE TAX INCREMENT FINANCING WHICH ALLOWS US TO IDENTIFY A DISTRICT, FREEZE THE BASE AND NOT ADDING ANY NEW TAXES BUT ACTUALLY JUST TAKING THE VALUE ADD CAPTURE THAT OCCURS IN THAT ZONE AND REINVESTING IT IN THE DISTRICT.
THAT'S CALLED TAX INCREMENT FINANCING, WHICH IS EXACTLY EXACTLY WHAT AN EEI FD IS.
IT'S A TAX INCREMENT FINANCING DISTRICT, MUCH LIKE REDEVELOPMENT.
HERE'S A DIFFERENCE IN REDEVELOPMENT.
I ALWAYS SAY WE WERE LIKE THE KID THAT CAME TO THE SANDBOX WITH OUR TOYS AND THEN TOOK EVERYBODY ELSE'S BECAUSE WE WOULD GRAB EVERYBODY ELSE'S TAX INCREMENT IN EEI, FDS.
WE COME WITH OUR TAX INCREMENT AND THEN HAVE TO BASICALLY PERSUADE THE OTHER KIDS TO PLAY BALL WITH US AND GIVE US SOME OF THAT TAX INCREMENT FOR BENEFIT THAT WE CAN IDENTIFY TO THEM AND AS WELL TO OURSELVES.
BUT EEI, FDS AND TAX INCREMENT DISTRICTS ARE A KEY TOOL.
AND THEN YOU HAVE OPPORTUNITIES ZONES WHICH ARE JUST A NEW, REALLY A NEW FEATURE ON THE HORIZON, WHICH CAN BE MELDED WITH THESE OTHER TOOLS RATHER EFFECTIVELY.
[02:50:01]
HAD OPPORTUNITIES, ZONES WORK.AS I INDICATED, ALL OF THESE DISTRICTS WERE DESIGNATED THROUGH THE GOVERNOR'S OFFICE WITH SOME LOCAL COOPERATION IN 2018 THREE BASIC BENEFITS.
THEY'RE THERE TO INCENTIVIZE INVESTMENT BY ALLOWING YOU AND I TO TAKE ANY CAPITAL GAIN WE HAVE FROM ANY POSSIBLE INVESTMENT COULD BE SALE OF A BUSINESS, IT COULD BE SALE OF A PIECE OF PROPERTY, IT COULD BE SALE OF A COIN, COLLECTION CAN BE SALE OF STOCKS.
SO FROM THAT STANDPOINT, THEY'RE MUCH MORE FLEXIBLE THAN THE 10 31 EXCHANGE THAT MANY OF YOU KNOW, WHERE IT HAS TO BE A LIGHT KIND PROPERTY.
NO LIGHT KIND JUST HAS TO BE, AGAIN, LEGITIMATE REALIZED GAIN THAT GAIN WHEN INVESTED IN A QUALIFIED OPPORTUNITY FUND.
I DON'T KNOW IF I HAVE A, YEAH, I DO.
THE QUALIFIED OPPORTUNITY FUND IS THE DISTINCTIVE FEATURE, SO IN OTHER WORDS, IF WE HAVE A GAIN TOGETHER, THE SIX OF US ARE IN BUSINESS, WE CAN'T MAKE THAT INVESTMENT DIRECTLY INTO XYZ PROPERTY.
IT HAS TO GO INTO SOMETHING CALLED A QUALIFIED OPPORTUNITY FUND OR A QUAFF, WHICH IS SIMPLY CREATED BY FILING AN 89 86 FORM WITH THE FEDS.
IT'S REALLY A TRACKING DEVICE FOR THEM.
IT BAKES, IT IDENTIFIES THE ENTITY THAT YOU WOULD CREATE TO MAKE AN INVESTMENT AS A QUALIFIED OPPORTUNITY FUND FOR PURPOSES OF ELIGIBILITY OF THE ACT.
RIGHT? SO YOU BASICALLY, YOU HAVE YOUR GAIN AS AN INVESTOR, YOU MOVE IT TO A REAL PROPERTY OR A BUSINESS WITHIN SIX MONTHS OF TAKING THAT GAIN 180 DAYS AND THEN YOU HA YOU HAVE THE ABILITY TO ESCAPE ALL, ALL ADDITIONAL TAXES FROM PROFITS.
IF YOU HOLD THE PROPERTY FOR 10 YEARS, HOWEVER, THERE'S A LITTLE BUMP THAT GETS YOUR BENEFIT.
AT THE END OF 2026 YOU HAVE TO PAY THE DEFERRED TAX, BUT YOU GET A DISCOUNT ON THE TAX, WHICH IS ABOUT 10% OF THE BASIS.
SO THOSE THREE BENEFITS, BASICALLY THE INVESTMENT DEFERRAL AND ESCAPE FROM CAPITAL GAINS IS REALLY WHAT THIS PROGRAM'S ABOUT.
YOU CAN USE OPPORTUNITIES ZONES TO CREATE JOBS, STIMULATE ECONOMIC ACTIVITY AND COMBINE IT WITH OTHER PROGRAMS. WE'VE TALKED ABOUT THAT.
AND THE REAL CHALLENGE FOR US HERE IN EL CAHONE IS TO KNOW THAT THERE ARE LOTS OF OTHER ZONES OUT THERE.
SO THERE ARE MANY OTHER COMMUNITIES THAT ARE OUT THERE MAKING A SORT OF, UM, APPROACHING THE INVESTMENT COMMUNITY WITH TRANSACTIONS THAT MAKE SENSE.
AND THERE'S, AND THAT'S WHAT THIS CONVERSATION'S ABOUT.
IF YOU'RE GOING TO BE IN THE OPPORTUNITIES ZONE, EIF D BUSINESS, WHICH IS WHAT WE'RE TALKING ABOUT TONIGHT, THEN IT BECOMES IMPORTANT TO START WITH A PRESENTATION LIKE THIS, WHICH IS TO EDUCATE THE COMMUNITY ON THESE PROGRAMS AND THEN MAKE YOUR SELECTION AS LEADERS TO FIGURE OUT WHAT YOU WANT TO DO.
ONE OF THE LEADERSHIP ROLES THAT HAS COME OUT OF SACRAMENTO THROUGH THE GOVERNOR HAS BEEN TO FOCUS ON PAIRING AI FDS WITH OPPORTUNITY ZONES, WHICH IS WHY IN GREAT PART THAT WE'RE HERE BECAUSE YOU HAVE THAT UNIQUE ABILITY TO GET THAT DONE.
THE IFDS LET YOU INVEST IN YOUR OWN COMMUNITY BY CREATING A TAX DISTRICT AND YOU CAN SPEND THE UPSIDE ON ANY OF THOSE TAX, ANY OF THE TAXES GENERATED FROM NEW PROJECTS IN THAT DISTRICT ON ANY OF THESE AREAS.
INDUSTRIAL WORKFORCE, HOUSING, TRANSIT, ANY KIND OF INFRASTRUCTURE, THEY'RE VERY PERMISSIVE AND MUCH LESS CONSTRAINED THAN IT WAS IN REDEVELOPMENT.
IT'S ALSO NOT AS POWERFUL BECAUSE YOU DON'T HAVE CONTROL OF EVERYBODY ELSE'S INCREMENT AND YOU CAN'T USE SCHOOL DISTRICT INCREMENT.
BUT TOGETHER, IF YOU COMBINE THE EIF D WITH THE A O Z, WHAT YOU GET IS AN INTERESTING PARLAY OF MOMENTUM, RIGHT? BECAUSE OPPORTUNITY ZONES ARE EARLY INVESTMENT.
IF YOU DON'T GET YOUR MONEY IN, YOU DON'T GET YOUR TAX BELLY BUMP MONEY IN BY DECEMBER, 2021 SO YOU'RE MOTIVATED TO TAKE ADVANTAGE OF THAT.
SO IT'S EARLY INCREMENT, WHICH IS THE BEAUTY OF OZE, THE TAX INCREMENT DISTRICTS LIKE AI, FDS, YOU CAN SEE IT'S LIKE 45 YEARS.
HE CREATE THESE DISTRICTS FOR 45 YEARS AND YOU'RE WAITING FOR THAT INCREMENT TO BUILD SO THAT YOU HAVE INCURRED, THIS IS THE BASELINE AS THE BLACK, YOU CREATE THE DISTRICT.
LET'S SAY TOMORROW, THIS BECOMES YOUR TAX BASE.
NOW YOU'RE WAITING FOR INVESTMENTS SO THAT YOU GET YOUR TIF SO YOU CAN REINVEST IN YOUR COMMUNITY.
THE BEAUTY, THE KISSING, COUSINS BEAUTY OF OZIZ AND THE IFDS IS OZIZ WANT TO GO EARLY SO YOU CAN USE THEIR EARLY MOMENTUM TO CREATE INCREMENT.
IN TERMS OF TAX INCREMENT, THE CITY RECEIVES ABOUT 11 CENTS OF EVERY DOLLAR COLLECTED, PLUS IT HAS ALMOST 10 CENTS A VLF MOTOR VEHICLE LICENSE FEE FUNDS IN LIEU MONEY.
THE COMBINATION OF THOSE TO GIVE YOU ALMOST 20 CENTS ON EVERY TAX DOLLAR IN THE DISTRICT THAT YOU CREATE, THE COUNTY CAN ALSO BE A PARTICIPANT AND THEY GET ALMOST THINKING ABOUT 13 CENTS ON THE DOLLAR.
SO PART OF THE APPROACH HERE IS ALMOST LIKE A TRIO.
[02:55:01]
ALL, IT'S A THREE WAY APPROACH.YOU GO, LOOK, IF I CAN FOCUS ON A COUPLE OF PARCELS THAT GENERATE PRIVATE INVESTMENT AND I CAN PUT THAT PRIVATE INVESTMENT IN AN AFD AND CONTRIBUTE MY 20 CENTS, WHICH MEANS THAT I GET TO REINVEST IN THAT DISTRICT AND I CAN CONVINCE, LET'S SAY THE COUNTY WHO'S ALSO A PROPERTY OWNER, THE CIVIC CENTER, TO TAKE A BENEFIT OR TO WORK WITH US SO THAT WE CAN GENERATE A BENEFIT OUT OF THE EEI FD THAT WORKS FOR THEM.
WE MIGHT HAVE THE OSI MONEY ART, LET'S SAY 20 CENTS AND THEIR 13 CENTS OR ABOUT 33 CENTS ON THE DOLLAR OF TAX INCREMENT.
IT'S OTHER PEOPLE'S MONEY, WHETHER IT'S PRIVATE INVESTOR MONEY OR IT'S OTHER PUBLIC MONEY.
WHAT YOU'RE DOING AT THE LOCAL LEVEL IS LEVERAGING UP A CITY COUNTY RELATIONSHIP.
YOU'RE LEVERAGING UP A PRIVATE INVESTOR RELATIONSHIP THAT COMES THROUGH OZIZ AND YOU'RE TRYING TO DO IT IN A WAY THAT WOULD IMPROVE THE CIVIC CENTER.
NOW, OTHER COMMUNITIES ARE DOING THIS, BY THE WAY.
PLACENTIA THESE ARE ALL OUR CLIENTS ESSENTIAL.
THE VERN REDONDO HAVE ALL FORMED THE IFDS AND THEY ALL HAVE GOTTEN COMMITMENT FROM THEIR COUNTY TO EITHER MATCH OR COME CLOSE TO MATCHING THEIR CONTRIBUTED AMOUNT.
AND PLACENTIA HAS PUT ALL OF ITS OPPORTUNITIES, ZONE AREAS IN THEIR EIF D AS HAS MUDDY AS IS MADEIRA COUNTY AND OTHER CLIENTS OF OURS.
SO I'M GOING TO KIND OF WRAP UP BECAUSE I KNOW YOU, YOU'LL LIKELY HAVE QUESTIONS.
WHAT'S THE POINT OF ALL THIS? I HEARD AN EARLIER SPEAKER.
IT'S ALWAYS INTERESTING TO ME WHEN I COME TO CITY COUNCIL, I'VE BEEN DOING THIS A LONG TIME.
YOU KNOW, COMMUNITIES HAVE A WAY OF SORT OF ARTICULATING THINGS THAT IRRITATE THEM AS WELL AS MAKE THEM HAPPY.
MOSTLY YOU HEAR IRRITATION, BUT IN THE REALITY WHEN I HEAR THINGS LIKE, HEY, YOU DON'T HAVE A MOVIE THEATER, YOU DON'T HAVE THIS, YOU DON'T HAVE THAT.
WHAT THAT SEEMS TO ME, BECAUSE AS I'VE, I'VE GOTTEN TO KNOW THIS COMMUNITY, CREATING A STRONG CORE IN A DOWNTOWN IS REALLY A WAY TO SORT OF NAVIGATE THROUGH THIS NEW WORLD OF A DIGITAL ECONOMY WHERE LITERALLY EVERYONE CAN BUY ANYTHING ON A PDA.
SO THE ONLY ALTERNATIVE WE CAN AS A ECONOMY HAVE TO OFFER SHOPPERS AND VISITORS AND CITIZENS IS WHAT WE CALL SORT OF A PLACE, NOT JUST A SPACE, A PLACE TO GO TO THAT ENGAGES THEM BECAUSE THEY NEED TO MAKE A TRIP, WHETHER IT'S MEDICAL OR GOVERNMENT OR EDUCATIONAL OR BECAUSE THEY WANT TO LIVE THERE OR BECAUSE THEY WANT TO PLAY IN SHOP OR CAUSE THEY CAN JUST GO THERE IN A PUBLIC LIVING ROOM AND BE CONNECTED ON INTERNET AND BE AROUND OTHER PEOPLE.
THE REASON WE'RE SEEING SHOPPING CENTERS JUST ESSENTIALLY EVAPORATE BECAUSE OUR LARGE ANCHORS AREN'T ABLE TO COMPETE WITH THE INTERNET.
THOSE PROPERTIES ARE ALSO LOOKING FOR A WAY TO BECOME CENTERS AND PLACES.
WELL DOWNTOWN'S ARE VERY LIKE THAT.
SO PART OF OUR DISCUSSION WITH YOU IS THESE TOOLS CAN HELP YOU DELIVER A SENSE OF PLACE.
THESE TOOLS CAN HELP YOU IN GENDER PRIVATE INVESTMENT, MATCH IT WITH PUBLIC INVESTMENT THROUGH THE DISTRICT TO CREATE THAT LIFESTYLE AREA THAT MILLENNIAL AND GENERATION Z RENTERS AND OWNERS WILL WANT TO BE IN FROM YEARS, FROM YEARS FROM TODAY.
BECAUSE WE HAVE TO BUILD THESE COMMUNITIES.
OF THE FUTURE AND YOU CAN'T BUILD THEM JUST ON SUBURBAN SHOPPING CENTERS ANYMORE.
SO THIS IS REALLY ABOUT RETOOLING YOUR COMMUNITY AND IN YOUR CASE I THINK YOU HAVE A VERY SIGNIFICANT OPPORTUNITY IN THE CIVIC CENTER, WHICH IS ALSO BOLSTERED BY THESE PARTICULAR PARCELS, WHICH ARE OPPORTUNITIES ON PARCELS.
SO AS WE CLOSE OUT, THE SPECIFIC RECOMMENDATION THAT WE'RE MAKING IS THAT LOOK PARCEL ONE A, WHICH IS A PRETTY SIGNIFICANT HOTEL OPPORTUNITY IN PARCEL ONE B, WHICH IS A PRETTY SIGNIFICANT COUNTY OWNED PIECE OF PROPERTY.
PRETTY SIGNIFICANT MIXED USE OPPORTUNITY BOTH IN THE CIVIC CENTER AREA, BOTH DAWN WITHIN THE SAME TIME REALM CAN START TO CHANGE THE ACTIVITY LEVEL IN THE CIVIC CENTER.
THOSE WOULD BE FROM OUR OBSERVATION, WORTHWHILE OPPORTUNITIES TO PURSUE IN THE EARLY REALM OF OPPORTUNITY ZONES.
WE FULLY EXPECT OPPORTUNITIES ON LEGISLATION TO BE EXTENDED OVER A PERIOD OF TIME.
AND EVEN IF IT'S NOT, YOU STILL HAVE THIS ONE TIME OPPORTUNITY TO GET OUT THERE AND GET THESE DEVELOPED AND YOU CAN COUPLE THEM WITH THESE TOOLS THAT WE TALKED ABOUT.
THE WAY THAT WE COULD ENGAGE THE PRIVATE SECTOR IS THREEFOLD.
ONE, WE CAN PACKAGE UP THE SITE SO WE CAN EXPOSE IT.
A TWO INVESTMENT GROUPS, INCLUDING THE ADJACENT HOTEL OWNER INVESTMENT GROUP.
WE CAN DO THAT THROUGH AN RFQ OR AN RFP.
WE WANT TO MOVE QUICKLY BECAUSE IT'S O Z MONEY.
THEY DON'T REALLY LEND THEMSELVES TO COMPETITIVE PROGRAMS. THEY'RE REALLY JUST ABOUT TAX INVESTING, BUT WE CAN STRIKE A BALANCE.
NUMBER TWO, WE CAN WORK COLLATERALLY TO
[03:00:01]
CREATE AN EEI F D DISTRICT THAT WOULD INCLUDE THESE PROPERTIES BECAUSE THAT SENDS A MESSAGE TO THE OPPORTUNITIES ZONE.INVESTORS THAT WERE ALSO WILLING TO HELP ASSIST, COOPERATE IN THE DEVELOPMENT OF THIS AREA.
AND THEN NUMBER THREE, THIS IS SORT OF THE, THE ACTUAL STEPS.
WE CAN ALSO ENGAGE THE COMMUNITY AND OTHER OWNERS THAT HAVE PROPERTY AND OPPORTUNITIES ZONES SO THAT THEY CAN BECOME EDUCATED ON HOW TO ACCESS THE CAPITAL MARKET.
THAT TENDS TO BE THE STUMBLING BLOCK IS ACCESSING THE CAPITAL MARKET.
WE KEEP TRACK OF THOSE CAPITAL SOURCES.
WE'RE IN FRONT OF THEM ALL THE TIME.
SO AS WE SHOW UP WITH TWO REAL PROJECTS THAT HAVE CITY COOPERATION, WHICH GIVES US AN EDGE IN THE MARKETPLACE, WE CAN ALSO SORT OF BRING OTHERS WITH US THAT WE IDENTIFY.
AFTER TALKING TO THE COMMUNITY SANTA ANA AS A CLIENT, WE UH, BRIAN AND I SPENT A COUPLE OF DAYS WORK MEETING WITH SEPARATE OWNERS OF PROPERTIES AND THE OPPORTUNITIES ZONE AT THE BEHEST OF THE CITY.
AND WE'RE ALREADY GETTING THOSE PROPERTIES OUT THERE AND MATCHING THEM WITH INVESTORS.
THAT'S SORT OF THE RUBIK'S CUBE YOU HAVE TO GO THROUGH BECAUSE THESE INVESTORS, THESE PROPERTY OWNERS HAVE VERY GOOD PROPERTIES THAT HAVE BEEN ELEVATED IN POTENTIAL RETURN BECAUSE OF THIS TAX STATUTE, THE OSI, BUT THEY DON'T HAVE A WAY TO ENGAGE THE INVESTMENT COMMUNITY AROUND THAT PARTICULAR CONCEPT.
SO IN OUR CASE IN OKLAHOMA, JUST WRAPPING THIS UP, WE HAVE TO, IF YOU GIVE US, IF YOU GIVE GRAHAM AND THE TEAM THE GREEN LIGHT TO MOVE FORWARD ON THESE SITES, UH, FOR BOTH THE AUSSIE AND THE IFD, WE WOULD COMPLETE OUR DUE DILIGENCE AND SOLID AND SOLIDIFY THE INFORMATION PACKAGE AROUND THOSE SITES.
WE WOULD IDENTIFY ANY INFRASTRUCTURE THAT CAN BE, CAN BE BROUGHT TO SUPPORT THE DEVELOPMENT OF THOSE SITES THROUGH THE IFD WE START YOUR EDUCATION AND ENGAGEMENT PROGRAM AND WE WOULD CONTINUE TO EXPLORE OTHER SOURCES OF ECONOMIC TOOLS AND LOOK AT ECONOMIC FUNDS THAT ARE COMING FROM THE GOVERNOR'S OFFICE THAT WOULD INDUCE THINGS LIKE HOUSING OR OTHER ECONOMIC ACTIVITY.
IT'S JUST A ONGOING SORT OF HOLISTIC APPROACH TO TARGETING PRIVATE INVESTMENT DOLLARS AND CONVERTING IT TO SUCCESS IN YOUR COMMUNITY.
AND I'LL STOP THERE AND ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE.
QUESTIONS? STEVE, YOU WANT TO START? VERY THOROUGH PRESENTATION.
SO, UH, HOW DOES CALIFORNIA COMPARE TO OTHER STATES? ONE OF THE SLIDES SAYS THAT THERE IS COMPETITION WITH OTHER STATES AS CALIFORNIA AT A DISADVANTAGE AT ALL BECAUSE IT DOESN'T DO SOMETHING OTHER STATES DO.
YEAH, THAT'S A GREAT QUESTION.
UM, AND THE DISADVANTAGE IS BECAUSE THE STATE LEGISLATURE HAS NOT MOVED TOWARD STATE TAX CONFORMITY WITH THE FEDERAL TAX INFORMITY THAT OZU PROVIDES.
SO IN ENGLISH, IF YOU'RE TEXAS AND YOU HAVE NO STATE INCOME TAX AND YOU'RE AN O Z INVESTOR, YOU HAVE THE BENEFIT OF INCOME TAX EXCLUSION THROUGH THE OSI PROGRAM AND YOU HAVE BENEFIT OF INCOME TAX EXCLUSION BECAUSE THE STATE HAS NO INCOME TAX.
IN CALIFORNIA, WE HAVE THE MOST EXPENSIVE INCOME TAX IN THIS STATE, IN THE COUNTRY AT 13% 13.3 AT YOUR HIGHEST BRACKET.
SO THOSE INVESTORS HERE, BECAUSE THE LEGISLATURE DOES NOT SEEM INCLINED TO CONFORM THOSE AND GIVE THE PROGRAM THE SAME STANDING, LET'S SAY THAT NEW YORK DID, NEW YORK ALSO HAS A HIGH INCOME TAX, BUT THEY DECIDED TO APPROVE CONFORMITY.
IN FACT, ADDED THE 50 STATES, I BELIEVE 46 NOW HAVE TAX CONFORMITY.
SO FROM THAT, FROM THAT STANDPOINT, COUNCIL MEMBER CALIFORNIA TENDS TO SUFFER A LITTLE BIT.
NOW ON THE BALANCE THOUGH IS THAT THIS IS A PRETTY ROBUST INVESTMENT, UH, ARENA.
AND PEOPLE LIKE TO BE HERE BECAUSE OF THE VALUE OF THE AND THE VALUE OF INVESTMENTS.
SO, UH, AND THERE'S A LOT OF LOCAL INVESTORS THAT LIKE TO STAY LOCAL AND NOT MOVE OUT OF THE STATE LESS AND LESS SO BECAUSE OF THE TAXES ADVANTAGE.
SO WE ARE FINDING A GOOD AMOUNT OF ACTIVITY IN CALIFORNIA.
WE WOULD FIND MORE IF I COULD CONVINCE THE LEGISLATURE, AND I'VE BEEN UP THERE A NUMBER OF TIMES TO GIVE TAX CONFORMITY AT OZIZ.
I JUST DON'T SEE IT ON THE HORIZON.
CABALLERO FOUND A SA AUTHORED A BILL FOR US.
UH, IT DIDN'T GET THROUGH ACTUALLY HERTZBERG OR AUTHORED THE CONFORMITY BILL.
WE HAD PUT IN THAT THE ONLY CONFORMITY WOULD COME FROM AFFORDABLE HOUSING PROJECTS AND ENERGY RELATED PROJECTS THINKING THAT IF WE NARROWED IT DOWN TO THOSE TWO STATE PRIORITIES, THAT THEY WOULD AT LEAST A A, YOU KNOW, ENABLE A CONFORMITY FOR THOSE BUSINESS PROPOSITIONS.
SO WHERE DO WE STAND IN TERMS OF 879 THE OPPORTUNITY ZONES IN THE STATE.
IF WE SAID GO, ARE WE KIND OF AT THE FRONT EDGE OF THIS THAT UH, THERE'S MORE OPPORTUNITY FOR US? ARE WE AT THE BACKEND
[03:05:01]
OF, AND THERE'S A WHOLE LOT OF THEIR CITIES HAD OF US THAT WE'VE GOT A LOT OF COMPETITION WITH.SO I KNOW THE GOOD QUESTION, I THINK I WOULD LIE, I WOULD LIKE IN THIS CIRCUMSTANCE TO ERASE WHERE THE GUN GOT POPPED EARLY AND EVERYONE STARTED RUNNING, BUT NO ONE KNEW WHERE THE FINISH LINE WAS.
AND SO THE RACE KIND OF STOPPED AND THAT'S KIND OF WHERE WE ARE.
SO WE'RE NEAR THE FRONT, NOT NEAR THE END.
AND THE REASON I SAY THAT IS BECAUSE THERE HAVE BEEN THREE TAX CLARIFICATIONS FROM THE DEPARTMENT OF TREASURY SINCE THE ADVENT OF THE LAW IN DECEMBER, 2017 AND EACH ONE OF THOSE, THE LAST ONE BEING IN DECEMBER, WHICH IS CLOSED OUT FOR COMMENTS IN FEBRUARY LAST MONTH, REALLY ADDED A DIMENSION OF UNDERSTANDING AS TO HOW ONE OZE FUNDS COULD MAKE MULTIPLE INVESTMENTS.
NUMBER TWO, HOW O Z FUNDS COULD ACTUALLY INVEST IN BUSINESSES AND GET THROUGH THE THRESHOLD TESTS.
AND SO THOSE KINDS OF CLARITY'S CLARIFICATION'S HAVE REALLY HELPED RESTART THE LINE IF YOU WILL.
SO I THINK NOW THE INVESTMENT COMMUNITY TRULY UNDERSTANDS THE NUANCES OF BOTH BUSINESS AND REAL ESTATE INVESTMENT.
AND WE HAVE A GOOD CHANCE TO BE OUT THERE IN A TIME WHEN THE MARKET HAS A LOT OF FUNDS LOOKING FOR DEALS AND IS SEEMS TO BE OPEN MINDED TO GET STARTED ON SOME DEALS.
YOU SAID THIS IS A 10 YEAR HOLDING PERIOD.
DID THAT 10 YEAR HOLDING PERIOD BEGIN IN 2017 WHEN THE LAW WAS PASSED? SO THE 10 YEARS HOLDING PERIOD STARTS AT THE DATE THAT YOU BOOK THE NEW INVESTMENT? AS LONG AS THAT NEW INVESTMENT IS AFTER DECEMBER 31 2017 SO RIGHT.
SO IT'S EASY TO JUMBLE ALL THOSE TOGETHER AND I PROBABLY DID THAT TO YOU, BUT SO IF YOU'RE POST JANUARY ONE LET'S SAY 2018 AND YOU MAKE THAT INVESTMENT WITHIN SIX MONTHS, THERE'S SOME NUANCES TO THE SIX COULD BE A LITTLE LONGER.
YOU GET TO BENEFIT OF THE PROGRAM AS LONG AS YOU HOLD A 10 YEARS.
NOW THE PROGRAM SUNSETS IN 2047 SO IT'S NOT LIKE YOU HAVE TO SELL 10 YEARS IN A DAY LATER, YOU CAN HOLD ON FOR QUITE A WHILE AND WE'RE ALREADY SEEING SOME FOLLOW ON LEGISLATION THAT'S BEING INTRODUCED, INDUCED INTRODUCED AT THE FEDERAL LEVEL.
SO MY SENSE IS IS THAT IF THERE IS SUCCESS, YOU KNOW, OVER THE FIRST FIVE TO SEVEN YEARS, BECAUSE THIS PROGRAM'S NOT GOING TO UNFOLD THAT QUICKLY.
AND TO THE EXTENT THAT IT DOES, I THINK WE'LL SEE SOME APPETITE TO CONTINUE AND EXPAND AND DO DIFFERENT THINGS WITH IT.
IT'LL EVOLVE MUCH LIKE ENTERPRISE ZONES DID.
YOU MENTIONED RE-PURPOSING THE CIVIC CENTER AREA AS PART OF AN OPPORTUNITY ZONE.
SO WHAT ARE THE NEXT STEPS ON THAT OR I, I ASSUME THAT YOU'RE GOING TO, UM, LOOK AT THE OPTIONS SHOP AT, AROUND, COME BACK AND GIVE US A PROPOSAL.
IS THAT, IS THAT PLANNER? I THINK THAT'S RIGHT IN THE CITY MANAGER OR, OR EVENTS.
YOU COULD BAIL ME OUT OF YOU LIKE THAT.
W BASICALLY WE HAVE A WORK PROGRAM THAT CENTERS ON THESE TWO SITES THAT WE CONTROL, THAT HAVE ECONOMIC VIABILITY SO WE CAN START THERE.
AND THE WORK PROGRAM FOR US IS TO GET THOSE ON THE MARKET TO FORM ANY IFD AROUND IT TO HELP SUPPORT THE MARKET EFFORT AND THEN TO OUTREACH TO THE COMMUNITY TO SEE IF THERE'S ANY OTHER ROSIE DEALS THAT MAKE SOME SENSE ONCE WE START TRACKING SOME FUND INTEREST FOR ELK OWN.
SO WHAT'S THE TIMELINE LOOK LIKE FOR THAT? I THINK IT'LL TAKE US PROBABLY ABOUT FOUR MONTHS TO REALLY GET THE PROFILES OF RIGHT NOW, NOT, NOT TOO, NOT TOO LONG.
AND THEN THE RESULTS OF THAT MAY TAKE TIME.
I JUST, IT'S JUST A MATTER OF TO GET TO GET THE PACKAGE OUT AND IN FRONT OF INVESTMENT GROUPS, YOU KNOW, IF YOU WOULD, YOU KNOW, LET US GO GET STARTED.
WE'D LIKE TO GET THAT DONE IN THE NEXT 120 DAYS.
THIS IS GOING TO TAKE THE COOPERATION OF THE CITY, THE STATE AND THE COUNTY ALL WORKING IN TANDEM TOWARDS A GOAL.
IS THAT REALISTIC? IT IS A VERY REALISTIC IN THE SENSE THAT ONE YOU HAVE TO MAKE THE GOALS DIGESTIBLE AND YOU HAVE TO MAKE THEM ATTRACTIVE.
IT'S A LITTLE BIT LIKE A BUSINESS PLAN.
YOU HAVE TO GO WITH YOUR BEST, YOU KNOW, BASICALLY YOUR BEST BUSINESS PLAN TO ENGAGE A COUNTY OR A STATE TO GET INVOLVED WITH THESE THINGS.
BUT WE'VE BEEN ABLE TO DO IT A NUMBER OF COMMUNITIES AND WE CONTINUE TO HAVE SUCCESS.
I GUESS THE REASON I SAY THAT IT'S, YOU KNOW, SOMETIMES WE'VE, WE'VE HAD DEALINGS WITH SAY LIKE THE STATE WHERE WE HAVE AN IDEA THAT WOULD BENEFIT THEM AND OBVIOUSLY WOULD BENEFIT THEM, BUT YOU CAN'T GET ANYBODY TO EVEN CALL YOU BACK.
YOU CAN'T, NOBODY WILL YOU THINK IT MIGHT BE DIFFERENT IN THIS RESPECT BECAUSE OF THE, THE LURE OF THE OPPORTUNITIES OWNERS? WELL, I, I DON'T THINK SO MUCH THAT, BUT YOU KNOW, HONESTLY TO THE EXTENT THAT IF, FOR EXAMPLE, ON THIS PIECE OF PROPERTY, IF WE COULD USE A, WE COULD BRING MIXED USE AND ACTUALLY DO SOME, UH, DIFFERENT INCOME CATEGORIES IN THAT MIXED USE PROJECT.
NOW WE'RE FURTHERING A STATE'S MOTIVATION.
SO IF YOU COULD SORT OF SAY THEIR, THEIR, THEIR BIG GOALS RIGHT NOW ARE HOUSING AND NO CARS, HOUSING AND ENERGY,
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HOUSING AND SUSTAINABILITY IN FACT WHERE WE CALL THESE DISTRICTS SUSTAINABILITY AND HOUSING DISTRICTS BECAUSE WE STARTED DOING THAT BECAUSE REALLY LOOK, THAT'S WHAT THE STATE'S AFTER.SO ALL WE'VE DONE WITH OUR CITIES TO SAY, LOOK, THE, THE, THE WAY YOU BEST RESPOND TO THIS IS YOU UNDERSTAND WHAT THEY NEED AND THEN USE THEIR OWN PROGRAMS TO HELP YOU GET ADVANTAGE LOCALLY.
WELL THAT MAKES A LOT OF SENSE.
UH, UH, CERTAINLY THE STATE HAS ALMOST UNREALISTIC IDEAS OF WHAT WE CAN DO AS FAR AS HOUSING GOES SO THAT THAT WOULD BE HELPFUL.
WE JUST CHERRY PICK IT AND JUST MOVE FORWARD TO, TO OUR ADVANTAGE AND PICK THE KIND OF PROJECTS THAT WE REALLY WANT.
WELL, UM, I APPRECIATE ALL YOUR KNOWLEDGE.
IT WAS A THANKS FOR SITTING THROUGH THAT.
WE DON'T HAVE A MOTION ON THE TABLE, BUT WE'RE LOOKING FOR SOME DIRECTION THAT A MISTER DEMAYA AND I CAN AND I CAN CONTINUE TO WORK WITH THE COSMO COMPANIES TO
LET ME SEE IF WE HAVE ANY ESP CARDS ON THIS.
I'M GUESSING WE DON'T, BUT WE DON'T.
WE DON'T NEED THE CLOSED PUBLIC HEARING.
I, I THINK THAT THIS IS A OBVIOUSLY GREAT OPPORTUNITY.
I PROPOSE THAT WE, UH, GO AHEAD AND GIVE GRANT WHAT HE'S ASKED FOR AND DIRECTION TO GO AHEAD AND PURSUE THIS PROCESS.
THERE SHOULD BE, THAT'D BE A STEP FORWARD.
I'LL MAKE THAT EMOTION AND LET'S, ANYBODY HAS DISCUSSION THAT THEY WANT TO HAVE A QUICK COMMENT.
UH, THE PROPERTY AT MAGNOLIA IN MAINE THAT'S UNDERGOING RENOVATION, IF THAT IS ABLE TO BE INCLUDED AS AN ELIGIBLE PROJECT, THAT WOULD BE A POSTER CHILD FOR SOMEBODY TO PROVIDE A TESTIMONIAL ABOUT INVESTING IN THIS KIND OF A PROJECT AND IT WOULD HIT THE GROUND RUNNING KIND OF A THING.
SO IT, MR GOOGLE, I THINK YOU'RE RIGHT.
I THINK, UH, IN FACT, THE MAYOR, UH, MET WITH ANOTHER INDIVIDUAL TODAY THAT COULD BE ANOTHER POSTER PROJECT.
I THINK THEY'RE ALL OVER THE PLACE.
ONE OF THE THINGS I LIKE WHAT COSMOS RECOGNIZES, THERE'S TWO PARCELS THAT FOR LACK OF BETTER WORDS, ARE PRETTY SEXY TO INVESTORS.
IF WE CAN GET SOME INTEREST THERE, I IT GETS OUR FOOT IN THE DOOR, WE CAN START MARKETING MAYBE SOME THAT AREN'T AS INTERESTING BUT MAYBE MORE VIABLE.
SO, UM, I THINK THAT'S THE INTENTION.
WE, WE MET WITH THE, UH, PROPERTY OWNER TODAY WHO HAD AN IDEA ABOUT HIS PROPERTY, WHICH WAS PROBABLY NOT A USABLE IDEA, BUT, UH, GRAHAM WAS ABLE TO COME IN AND TELL THEM ABOUT OPPORTUNITIES ZONES AND IT JUST OPENED HIS EYES TO A WHOLE NEW WORLD OF, UH, OF, UH, OPPORTUNITIES TO, SO I, I THINK YOU'RE RIGHT, THAT STOCK, NOT JUST FOR THIS PARCEL, BUT WE'RE, WE'RE REALLY BLESSED THAT WE HAVE THIS, AN ALCOHOLIC BECAUSE VERY FEW OF THOSE IN SAN DIEGO COUNTY.
SO AGAIN, I HAVE A MOTION ON THE TABLE.
I HAVE A SECOND, UH, OBJECTIONS.
MOTION CARRIES BY UNANIMOUS VOTE.
[11. Legislative Report RECOMMENDATION: This is an information item only. No City Council action is required at this time.]
ALL RIGHT, NOW GOING ON TO ITEM 11.UM, VINCE, WOULD YOU LIKE TO TELL US ABOUT THE LEGISLATIVE REPORT? UM, YES, THANK YOU MAYOR.
MEMBERS OF COUNCIL, UM, AS YOU'LL SEE FROM THE REPORT IN JUST A MATTER OF SIX WEEKS, BEGINNING IN JANUARY, UM, WE SAW OVER 2000 BILLS SUBMITTED AT THE STATE LEGISLATURE.
UM, YOU KNOW, THEY, THEY RANGE, UH, FROM SILLY TO ABSURD, UM, AND EVERYWHERE IN BETWEEN ON THAT RANGE.
UM, I'VE HIGHLIGHTED A COUPLE OF THEM HERE.
UM, I WON'T GO THROUGH ALL OF THEM CAUSE IT'S, IT'S, IT'S LATE AND WE'VE BEEN HERE, BUT THERE'S A COUPLE OF THEM THAT I THINK WOULD BE OF PARTICULAR INTEREST NET.
KEEP IN MIND THAT THESE ARE JUST NOW GETTING SCHEDULED FOR COMMITTEE, SO THEY'RE LIKELY TO BE AMENDED.
THEY'RE LIKELY TO BE CHANGED, THEY'RE LIKELY TO LOOK A WHOLE LOT DIFFERENT MONTHS FROM NOW THAN THEY DO NOW.
BUT THERE'S A COUPLE OF THEM THAT COULD BENEFIT, UM, THE CITY.
AND THERE'S OTHERS THAT ARE OF INTEREST TO THIS COUNCIL IN, IN THINGS THAT YOU'VE CONSIDERED IN THE PAST.
FOR EXAMPLE, AB 1639 REQUIRES RETAILERS TO USE AGE VERIFICATION SOFTWARE WHEN SELLING TOBACCO AND VAPE PRODUCTS.
SO THIS IS, YOU KNOW, NO LONGER DO YOU DO YOU PASS ALONG YOUR FAKE ID, YOU KNOW, YOUR ID HAS TO GO THROUGH SOFTWARE AND IT VERIFIES YOUR AGE.
UM, AB 2122 IMPOSES CIVIL PENALTIES OF $30,000 PER OFFENSE FOR ANYONE AIDING OR ABETTING UNLICENSED COMMERCIAL CANNABIS ACTIVITY.
THIS IS SOMETHING WE'VE DISCUSSED HERE MANY TIMES ABOUT THE PARTICIPATION OF A PROPERTY OWNER IN RENTING OR LEASING HIS, HIS BUILDING FOR A COMMERCIAL CANNABIS ACTIVITY.
AND HOW DO WE GET TO THAT PROPERTY OWNER AND YOU KNOW, EXACT SOME KIND OF PUNISHMENT FOR DOING SOMETHING THAT'S AGAINST THE MUNICIPAL CODE.
SO OF COURSE, YES, ABSOLUTELY.
IS THAT, IS THAT BROUGHT FORWARD BY A DEMOCRAT OR REPUBLICAN? UH, IT'S RUBIO.
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I BELIEVE HE'S A DEMOCRAT AND IT MIGHT PASS.AND DOES THE CITY OR THE STATE GET THE MONEY? I DON'T KNOW YET.
I APPRECIATE THAT QUESTION BY THE WAY.
UM, ANOTHER ONE IS, UM, SB, UH, SEVEN 93, WHICH PROHIBITS THAT.
THIS IS, THIS IS A BIG DEAL AND THIS WILL PROBABLY NOT MOVE.
UM, BUT IT IS KIND OF A BIG DEAL AND IT'S SOMETHING THAT, UH, HAS BEEN DISCUSSED HERE BEFORE IN VARIOUS WAYS.
PROHIBITS THE SALE OF FLAVORED TOBACCO AND VAPE PRODUCTS, INCLUDES FLAVORED CIGARS, HOOKAH AND FLAVORED VAPE PRODUCTS.
SO THIS MEANS EVERYTHING FROM A PIPE TOBACCO THAT HAS FLAVOR TO HOOKAH, TO, UH, SWISHER SWEETS TO MENTHOL CIGARETTES.
I MEAN, IT IS, IT IS BROAD AND SWEEPING AND, UM, YOU KNOW, I JUST THINK THERE'S JUST TOO MANY PRODUCTS AND TOO MANY INTEREST GROUPS THAT ARE GOING TO COME AFTER THIS ONE.
SO NOT, NOT, NOT OPTIMISTIC ON THAT ONE, EVEN THOUGH IT'S, IT'S GOT SOME GOOD INTENTIONS.
UH, THIS'LL BE THE LAST ONE I TALK ABOUT.
THERE'S A NUMBER OF BILLS THAT TALK ABOUT PERMIT STREAMLINING AND, AND, OH, YOU KNOW, UM, COMING IN AND TELLING THE CITY WHAT TO DO IN TERMS OF DENSITY, UM, YOU KNOW, THAT, THAT WE SAW LAST YEAR AND I, AND I CAUTION THAT WE WOULD SEE THOSE AGAIN.
UM, THERE'S ONE THAT CHANGES THE WAY THAT, UM, UH, ELIMINATES THE LIMITATION ON CITY AUTHORITIES, UH, ON CITY AUTHORITY, ON HOW THEY PRESCRIBED PAYMENTS ON PUBLIC WORKS CONTRACTS THAT ACTUALLY WOULD BE BENEFICIAL TO US BECAUSE WE HAVE CERTAIN RULES AND REGULATIONS WE HAVE TO FOLLOW WHEN WE'RE PAYING CONTRACTORS ON PUBLIC WORKS PROJECTS.
THIS WOULD FREE IT UP TO BE IN THE CONTRACTS WOULD HAVE A LITTLE BIT MORE, UH, WE'D BE A LITTLE MORE LIBERAL IN TERMS OF WHEN WE WOULD CALL OUT, UH, WHEN CERTAIN PAYMENTS ARE MADE.
SO THAT'S ACTUALLY BENEFICIAL, BUT WE'LL SEE IF IT STAYS IN ITS CURRENT FORM.
OTHER THAN THAT, YOU KNOW, I WILL CONTINUE TO SUBMIT, UH, AS PART OF THE MAYOR'S REPORT, THE, THE LEGISLATIVE REPORT IS CHANGES COME THROUGH AND THEN TOWARDS THE END OF THE SESSION I'LL DO A COMPREHENSIVE REPORT AS I DID LAST YEAR AND I'LL HAVE HAPPY TO ANSWER ANY QUESTIONS.
UM, WERE THERE ANY SPEAKERS IN THIS ISSUE? NO.
ALL RIGHT, COUNSEL, UM, A QUESTIONS OR, SO IT LOOKS LIKE THAT.
THIS IS THE INFORMATION ITEM ONLY, SO WE DON'T NEED A MOTION.
UH, THERE ARE NO COMMISSION REPORTS ON TODAY'S AGENDA.
ITEM 12 IS MY ACTIVITY REPORT AS AS REPORTED, UH, COUNCIL MEMBER KENDRICK AS REPORTED COUNCIL MEMBER MCALLEN AS REPORTED COUNCIL MEMBER GLOBAL AS A PORTER WITH A, UH, REQUEST FOR THE COUNCIL.
I WOULD LIKE TO TAKE A LOOK AT WHAT THE CITY PAYS IN CREDIT CARD FEES PER YEAR AND TO SEE IF THERE'S AN OPPORTUNITY FOR US TO CONSIDER, UH, THE TREATING THEM THE SAME WAY OUR COUNTY OR THE DMV DOES.
IN OTHER WORDS, IF YOU PAY BY CREDIT CARD, YOU PAY A 2% CONVENIENCE FEE.
THAT WAY THE TAXPAYERS AREN'T FUNDING SOMEBODY'S REWARDS POINTS AND THINGS.
WOULD THE COUNCIL SUPPORT PUTTING THAT ON A FUTURE AGENDA TO AT LEAST SEE WHAT KIND OF DOLLARS WE'RE TALKING ABOUT? THAT'S GREAT.
I DO ANY OBJECTIONS, A COMEBACK WITHIN 45 DAYS.
UM, I'D RECOMMEND, YEAH, THAT WOULD BE OKAY.
AND THEN MAYBE IF THE COUNCIL WANTED DIRECT, THAT WOULD GIVE US TIME TO ADJUST OUR, UM, FEE SCHEDULE THAT, THAT COUNCIL REVIEWS ANNUALLY.
SO IF THERE WERE ANY CHANGES AS COULD BE APPLIED TO THAT.
THERE ARE NO JOINT COUNCILOR REPORTS TODAY THAT ARE GENERAL INFORMATION ITEMS FOR DISCUSSION.
[17. Introduction of an Ordinance Amending Chapter 9.30 of the El Cajon Municipal Code – Social Host of Parties RECOMMENDATION: That the City Council considers approving the attached Ordinance amending Chapter 9.30 of the El Cajon Municipal Code ("ECMC") related to Social Host of Parties and, if approved, take the following actions: By Motion, Second and Vote, moves to introduce the Ordinance; and Directs the City Clerk to read the title of the Ordinance.]
ITEM 17 IS A FIRST READING OF ORDINANCES TO AMEND CHAPTER 9.3 RELATED THE SOCIAL HOST PARTIES.AND I'LL ASK STAFF TO INTRODUCE THE SILENCE.
THIS IS AN ITEM THAT, UH, WAS DISCUSSED SOME TIME AGO WHEN MARIJUANA BECAME, UM, MORE OF A, AN ACCESSIBLE TYPE OF PRODUCT BECAUSE OF MEDICAL MARIJUANA LAWS OR THEN, UH, UH, SUBSEQUENTLY TO LEGALIZATION MARIJUANA FOR, FOR ADULTS AND THE ADULTS BY ADULTS, I MEAN OVER 21 AND OLDER, UM, AT THAT TIME.
AND WE PRESENTLY HAVE A SOCIAL HOST ORDINANCE THAT, UH, WE USE FROM TIME TO TIME.
WE HAVEN'T USED IT VERY OFTEN HERE, BUT IT IS A, A, UH, TOOL TO PREVENT, UM, UH, MINORS FROM BEING GIVEN ACCESS TO ALCOHOL AND DRUGS AT PARTIES.
AND IT HOLDS THE PARTY GIVER AND PERHAPS EVEN THE ADULT THAT'S IN CHARGE OF THE HOME RESPONSIBLE FOR FOUR VIOLATIONS.
WE CAN PROSECUTE THEM CRIMINALLY AS WELL AS UH, UH, CIVILLY, BUT USUALLY A CRIMINAL PROSECUTION OCCURS.
UM, IT WAS SUGGESTED THAT BECAUSE OF THE CHANGE IN LAWS RELATED TO
[03:20:01]
MARIJUANA THAT WE WOULD WANT TO ADD THAT OR MAKE IT CLEAR THAT IT APPLIES TO OUR SOCIAL HOST ORDINANCE.AND WHILE WE USE THE TERM DRUG IN, IN THE AND CONTROLLED SUBSTANCE IN THE EXISTING, UM, UH, ORDINANCE, IT, IT WAS APPROPRIATE FOR US TO REFINE THAT A LITTLE BIT MORE AND PROVIDE SOME MORE DEFINITIONS TO THE CHAPTER DEALING WITH SOCIAL HOSTS, UH, VIOLATIONS.
AND THAT'S WHAT'S BEFORE YOU THIS EVENING WE MADE, UH, CHANGES IN ABOUT I THINK FIVE SECTIONS OF THE C, THE, UH, CHAPTER, UH, AND THE PROPOSED ORDINANCE IS ATTACHED.
THERE'S ALSO A, UM, A COPY OR A, AN ATTACHMENT SHOWING THE CHANGES THAT WERE BEING, ARE BEING PROPOSED IN THE ENTIRE CHAPTER.
SO THOSE SECTIONS THAT AREN'T BEING CHANGED STILL REFLECT, UH, WHAT OR YOU CAN READ IT IN CONTEXT.
UM, SO WE'RE PRESENTING IT TO YOU THIS EVENING FOR FIRST READING INTRODUCTION AND WE, IF, IF APPROVED, UH, WE WOULD BRING IT BACK FOR ADOPTION AT THE NEXT MEETING.
IF YOU HAVE, UH, THAT CONCLUDES MY REPORT AND I'LL BE HERE TO ANSWER QUESTIONS.
UM, IS THERE ANY FURTHER DISCUSSION WITH SOMEBODY LIKE TO MAKE A MOTION? SECOND, PLEASE VOTE.
MOTION CARRIES BY UNANIMOUS VOTE.
AND WITH YOUR PERMISSION I'LL READ THE TITLE.
AN ORDINANCE AMENDING CHAPTER 9.3 OF THE OKLAHOMA MUNICIPAL CODE TO INCLUDE A PROHIBITION OF CONSUMPTION OF MARIJUANA BY MINORS AT SOCIAL GATHERINGS.
ALL RIGHT, THERE ARE NO SECOND READINGS OF ORDINANCES ON TODAY'S AGENDA.
[23. CLOSED SESSIONS:]
CLOSE SESSION.I'LL ASK OUR CITY ATTORNEY TO RECITE THE TITLE AND LEAD US IN THE CLOSED SESSION.
UM, THE CITY COUNCIL IS ASKED TO GO INTO CLOSED SESSION ON TWO ITEMS. THE FIRST ITEM 18 IS A CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION FIVE FOUR NINE FIVE 6.8.
THE PROPERTY UNDER DISCUSSION IS 10 34 NORTH MAGNOLIA AVENUE.
THE NEGOTIATING PARTY IS A CRISIS HOUSE.
UH, AND THE AGENCY'S NEGOTIATORS ARE THE CITY MANAGER.
THE ASSISTANT CITY MANAGER, THE CITY ATTORNEY UNDER NEGOTIATION WOULD BE PRICE AND TERMS FOR LEASE OF ALL OR PART OF THE PROPERTY.
THE SECOND ITEM 19 IS A CLOSED SESSION FOR A CONFERENCE WITH LEGAL COUNSEL, EXISTING LITIGATION PURSUANT TO PARAGRAPH WARN, A SUBDIVISION D OF GOVERNMENT CODE SECTION FIVE FOUR NINE FIVE 6.9.
THE NAME OF THE CASE IS CLIMATE ACTION CAMPAIGN VERSUS CITY OF LA GO HOME.
UM, MAKE A MOTION THEN TO, UH, DURING THE CLOSE SESSION PLEASE VOTE.
MOTION CARRIES BY UNANIMOUS VOTE.
JUMPING BACK QUICKLY AFTER CLOSED SESSION TO CONCLUDE THE COUNCIL MEETING.
CITY COUNCIL MET IN CLOSED SESSION ON TWO ITEMS AS DISCUSSED, UH, PREVIOUSLY ON ITEM 18 DIRECTION WAS GIVEN TO THE CITY'S NEW NEGOTIATORS AND AN ITEM 19 DIRECTIONS GIVEN TO THE CITY'S LEGAL COUNSEL.
THIS BRINGS US TO THE ADJOURNMENT OF THE RECORD JOINT MEETING OF THE ALCON CITY COUNCIL AND ALCOHOL HOUSING AUTHORITY HELD THIS 10TH DAY OF MARCH, 2020.
IT IS ADJOURN TILL TUESDAY, MARCH 24TH, 2020 AT 3:00 PM THANK YOU VERY MUCH AND GOODBYE.