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LET'S GO ON AND GET STARTED.[ CALL TO ORDER: Mayor Bill Wells]
WELCOME TO THE CITY COUNCIL MEETING.WE CONTINUE TO HOLD REMOTE MEETINGS WHILE THE GOVERNOR'S EXECUTIVE ORDER CONTINUES TO BE EFFECT DUE TO THE COVID-19 PANDEMIC.
I WOULD LIKE TO REMIND OUR CITIZENS THAT THEY CAN SUBMIT QUESTIONS FOR ITEMS ON TODAY'S AGENDA.
PUBLIC COMMENTS MAY ALSO BE SUBMITTED AT THIS TIME AND THEY WILL RE WILL BE READ AT THE APPROPRIATE TIME.
DURING THE MEETING, COMMENTS WILL BE ACCEPTED UP TO THE CONCLUSION OR A VOTE OF THE ITEM.
COMMENTS CAN BE SUBMITTED THROUGH THE CITY OF ALCOHOL'S WEBSITE, UNDER AGENDAS AND MINUTES.
GO TO VIDEO STREAMING, YOU'LL SEE A BUTTON TO SUBMIT YOUR COMMENTS.
AND ALSO IF YOU'RE WATCHING THIS ON FACEBOOK LIVE ANY COMMENTS IN THE COMMENT SECTION ON FACEBOOK LIVE, WE'RE NOT ABLE TO COMMENT ON LIVE.
UH, THE MEETING IS CALLED TO ORDER.
I'LL ASK THE CITY CLERK TO CALL THE ROLL.
GENTLEMEN, WHEN I CALLING YOUR NAME, CAN YOU PLEASE STATE THAT YOU ARE PRESENT AND THAT YOU CAN HEAR US DEPUTY MAYOR OR ORTIZ? I'M HERE.
COUNCIL MEMBER GLOBAL COUNCIL MEMBER KENDRICK HERE.
COUNCIL MEMBER MCCLELLAN HERE, AND MAYOR WEALTH IS ABSENT TODAY.
WOULD YOU PLEASE STAND FOR THE PLEDGE OF ALLEGIANCE AND REMAIN STANDING FOR A BRIEF MOMENT OF SILENCE? READY, BEGIN TO THE FLAG, PREMIER AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL.
[ POSTINGS: The City Clerk posted Orders of Adjournment of the October 13, 2020, Meeting and the Agenda of the October 27, 2020, Meeting in accordance to State Law and Council/Authority/Successor Agency to the Redevelopment Agency Policy.]
THE CITY CLERK, GHOSTED ORIGINS OF A GENTLEMAN OF THE OCTOBER 13, 2020 MEETING AND THE AGENDA OF THE OCTOBER 27, 2020 MEETING IN ACCORDANCE WITH STATE LAW COUNCIL AND HOUSING AUTHORITY POLICY.[ PRESENTATIONS: Presentation: North Marshall Dog Park Virtual Ribbon Cutting]
WE HAD ONE PRESENTATION ON TODAY'S AGENDA.I WOULD LIKE TO INVITE DIRECTOR FRANK CARSON TO TELL US ABOUT THIS.
UH, THANK YOU, DEPUTY MIRROR TEAS FOR HAVING ME.
I WANT TO SHOW YOU A BRIEF VIDEO ON OUR VIRTUAL RIBBON CUTTING OF THE NORTH MARSHALL DOG PARK.
UH, OUR FIRST VIRTUAL RIBBON CUTTING THAT WE'VE BEEN ABLE TO DO.
UM, WE DID HAVE THREE DOG OWNERS, SO WE HAD CITY MANAGER, GRAHAM MITCHELL, MAYOR, BILL WELLS, AND, UH, UM, COUNCIL MEMBER, STEVE GLOBAL BROUGHT THEIR DOG OR DOGS, MULTIPLE DOGS TO THEIR OWN VIRTUAL RIBBON COUNTY AS PART OF IT.
UM, I DO WANNA ALSO THINK DANIELLE XAVIER AND BEN CAMPUS FROM THE MS SOCIETY FOR PARTICIPATING IN THE RE REPENTING AS WELL AS KYLE KENNEDY FROM THE URBAN CORE OF SAN DIEGO COUNTY, UH, URBAN CORE HELPED SECURE THAT GRANT WITH TORAH, THE $40,000 GRANT TO RENOVATE THIS AREA INTO LIKE A MINI DOG PARK AND SOME OTHER FUN AREAS, UH, FOR OUR COMMUNITY TO HOPEFULLY ENJOY IN THE FUTURE.
UM, BUT ALSO, UH, THIS WAS A BIG, A LARGE EFFORT ONCE AGAIN, BY OUR ENGINEERS WITHIN PUBLIC WORKS AND PUBLIC WORKS ITSELF THAT REALLY WANTED TO SEE THE SUCCESS OF THIS.
AND THEY DID A LOT OF EXTRA EFFORTS, A LOT OF THEIR OWN VOLUNTEER TIME TO MAKE SURE THAT THIS WAS SUCCESSFUL.
THAT'S WHY WE WANTED TO MAKE SURE WE ALSO HIGHLIGHTS IN ONCOLOGY, UH, IN THIS WE'RE HOPING TO GET JEFF MANCHESTER AND YASMINA.
WE JUST KIND OF GET THE TIMING, RIGHT? SO HERE WE GO.
LET'S SEE IF THIS WORKS, UM, TURN UP THE VOLUME.
OUR FIRST ATTEMPT AT A VIRTUAL RIBBON.
KENNY SAID, IF YOU COULDN'T HEAR THE MAYOR TALK THERE, I WAS STILL PLAYING WITH IT.
WE'RE TRYING TO FIGURE OUT HOW TO PUT ALL SEVEN INTO ONE SCREEN AS THE CLOSEST WE CAN GET TO GET EVERY TIME IN GETTING THAT ROOM AND CUTTING JUST RIGHT.
BUT OUR FIRST VIRTUAL RIBBON CUTTING WENT OFF WITH NOT TOO MUCH OF A HITCH THERE, AND THAT CONCLUDES MY PRESENTATION FOR THE DAY.
AND THANKS FOR ALL YOUR HARD WORK.
YOU GUYS ARE DEFINITELY TAPPING INTO THE CREATIVITY, UH, DURING COVID.
SO I APPRECIATE THE EXTRA EFFORT.
UH, DOES STAFF HAVE ANY AGENDA CHANGES MR. ORTIZ? WE HAVE NO CHANGES.
UH, COUNCIL MEMBERS WILL BE HAVE ANY, UH, AGENDA CHANGES, UH,
[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.]
PREDICT, UH, WHERE I CONSENT ITEMS, CONSENT ITEMS OR ROUTINE MATTERS ENACTED BY ONE MOTION.ACCORDING TO THE RECOMMENDATION LISTED BELOW WHAT'S CONCURRENT TO THE CITY COUNCIL, A COUNCIL MEMBER OR PERSON IN ATTENDANCE MAY REQUEST DISCUSSION OF CONSENT.
UNLESS THIS TIME COUNCIL MEMBERS WOULD YOU LIKE TO WISH? WOULD YOU LIKE
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TO GO INTO CONSENT ITEMS? I LIKE TO PULL ITEM FIVE, ITEM FIVE.UM, ITEM FIVE IS THE INVESTMENT AND I HAVE A QUESTION FOR CITY STAFF.
MY QUESTION WAS, UM, WHILE IT MAY NOT CURRENTLY BE THE CASE, COULD THE CITY INVEST IN BONDS OR OVER INVESTMENTS UP TOBACCO OR LIQUOR COMPANIES, MR. GOOGLE, I'M GOING TO HAVE A CLICHED OR FIGHTING INSTRUCTOR RESPOND TO SOME OF THOSE DETAILS.
SO TECHNICALLY THE INVESTMENT POLICY IS CURRENTLY WRITTEN.
THERE IS NO PROHIBITION ON INVESTING IN ANY PARTICULAR BUSINESS TYPE, ALTHOUGH IT WOULD BE UNLIKELY, BUT THAT WOULD CROSS OUR DESK, UH, FOR A POSSIBLE INVESTMENT OPPORTUNITY.
IT IS TECHNICALLY ALLOWABLE THAT WAS CURRENTLY TO SOME DEGREE WHEN WE INVEST OUR PRO'S MONEY.
HERS ALREADY HAS KIND OF A RESTRICTIVE LIST BASED ON SOCIAL POLICY THAT PEOPLE HAVE TO STAY THAT MAY CRA, UH, CALPERS DOESN'T INVEST BY A DIFFERENT SET OF RULES THAN WE DO.
UM, INVESTMENT DECISIONS ARE MADE BY BOARD DECISIONS, AND I KNOW THEY HAVE BEEN VERY ACTIVELY REVIEWING THOSE POLICIES AND TRYING TO PULL BACK FROM THE PRACTICE OF THE LAST FEW DECADES OF, UH, SOCIALLY INVESTING.
UM, HOWEVER, LIKE I SAID, THEY DO PLAY BY A DIFFERENT PLAYBOOK THAN THE REST OF US AND THEY DO MAKE THOSE DECISIONS ON THE FLY.
SO I GUESS MY QUESTION TO MY FELLOW COUNCIL MEMBERS IS, UM, SHOULD WE PUT ANY KIND OF RESTRICTION OF USING CITY INVESTMENTS FOR, UH, INVESTMENTS IN DEBT SERVICE, SUCH AS BONDS IN TOBACCO OR LIQUOR COMPANIES AND SPECIFIC DISCUSSION ON THE PROS AND CONS COUNSEL? YEAH, I WOULD THINK THAT WOULD BE A GOOD IDEA BECAUSE YOU'RE REALLY TRYING TO KEEP TOBACCO AND ALCOHOL OUT OF THE HANDS OF MINORS.
AND, UH, THE CENTER FOR DISEASE CONTROL TELLS US THAT 50% OF THE TOBACCO USERS WILL DIE AS A DIRECT RESULT OF SMOKING TOBACCO.
AND I THINK THAT'S A DYING INDUSTRY IN MORE WAYS THAN THE ONE YOU, MY, MY FEELINGS AREN'T AS STRONG ON ALCOHOL, BUT CERTAINLY THERE ARE NO REDEEMING QUALITIES TO TOBACCO BONDED.
I WOULD ALSO SAY THAT MARIJUANA WOULD BE, YEAH, I AGREE WITH BOB ON THAT.
SO IS THIS SOMETHING THAT WE NEED TO VOTE ON GRAHAM OR IS THIS JUST DIRECTION WITH REGARD TO INVESTMENT STRATEGY? WELL, I THINK, I THINK WHEN MR. GOBLE, IF THE REST OF THE COUNCIL CONCURS, I THINK WE'D HAVE TO HAVE A POLICY, A WRITTEN POLICY AROUND THAT.
UM, I, I WORRIED THAT THERE MAY BE MORE, MAYBE MORE COMPLICATED THAN JUST THOU SHALL NOT INVEST IN ALCOHOL AND TOBACCO AND MARIJUANA COMPANIES.
SO WHAT I RECOMMEND IS IF THAT'S WHAT COUNCIL WOULD LIKE US TO DO, AND I RECOMMEND THAT YOU ACTUALLY APPROVE THE, UM, INVESTMENT POLICY UPDATE OR JUST RECEIVED A REPORT.
IT'S NOT A VOTE THAT ITEM RISK, UM, OH NO, ADOPT THE RESOLUTION.
THAT'S PART OF THAT REPORT AND THEN GIVE SOME DIRECTION TO STAFF, TO COME BACK WITH A MODIFIED.
AND WE WOULD DO THAT IN THE NEXT COUPLE MONTHS, BUT, UM, I, I WOULD WANT TO SEE HOW OTHER CITIES ARE HANDLING THAT AND MAKE SURE THAT WE DO IT IN A PRUDENT WAY, IF THAT CAN, IF COUNCIL'S OKAY WITH THAT APPROACH COUNSELING, GO, GO, WELL, HO HOW'S THAT SOUND? UH, UM, I THOUGHT I HEARD THE OTHER TWO GUYS SPOTS.
I, YEAH, THAT'S, THAT'S FINE WITH ME.
I THINK IF WE COULD GET MORE INFORMATION ON IT WITH REGARD TO HOW, HOW WE WOULD EFFECTIVELY POLICE THAT, OR WOULD BE A PRUDENT THAT WE'D GET THE FULL PICTURE BEFORE WE PULL THE TRIGGER ON, ON THINGS.
SO I THINK THE CONSENSUS IS, UM, ALCOHOL, I'M SORRY, TOBACCO MARIJUANA,
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RIGHT? SO IT'S A GRAM FOR GRAM SPORT.WE WOULD LIKE TO SEE, UH, SOME WORK ON THAT.
I WOULD SUGGEST PUTTING DEADLINES ON THINGS.
SO I LIKE TO SEE SOMETHING BACK IN FOUR MONTHS THAT SHOULD GET US THROUGH THE HOLIDAY TO THEM.
SO NOVEMBER, DECEMBER JAN, BY MARCH 1ST, SOME INFORMATION ON THAT AND INCLUDING, I WOULD ALSO PUT A SUNSET ON THAT.
IN OTHER WORDS, THIS POLICY, IF THIS IS SOMETHING THAT WE ADOPT, WE SHOULD, I DON'T LIKE OPEN-ENDED THINGS.
SO I'D SAY LIKE A 10 YEAR OR THROUGH THE END OF THE DECADE, YOU KNOW, AND THEN, UH, JANUARY 1ST, 2030, ANOTHER COUNSEL SHOULD HAVE THE OPTION TO RENEW IT OR, OR LET IT DIE.
BUT, UH, SO I WOULD SUGGEST STAFF LOOK AT IT A 10 YEAR OR THE REMAINDER OF THE DECADE.
REMEMBER YOU DO REVIEW THIS UPDATED POLICY PERIODICALLY, SO YOU, YOU GET THIS, GET THIS IN FRONT OF YOU.
SO WE'LL GIVE YOU A COUPLE OF DIFFERENT OPTIONS FOR YOU TO CONSIDER.
UM, SO WITH THAT, I'LL GO AHEAD AND, UM, UM, MAKE A MOTION THAT WE APPROVE THE ENTIRE CONSENT AGENDA AS PRESENTED.
THE RECORD WE RECEIVED NO COMMENTS, UH, FOR CONSENT ITEMS AND, UH, DEPUTY MAYOR OR TEAS.
MOTION CARRIES BY UNANIMOUS VOTE OF THOSE PRESSES.
[ 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.]
UH, WE'RE NEXT STEP, PUBLIC COMMENT AT THIS TIME, ANY PERSON MAY ADDRESS A MATTER WITHIN THE JURISDICTION OF THE CITY COUNCIL HOUSING AUTHORITY, SUCCESSOR AGENCY TO THE ELKHORN CODE REDEVELOPMENT AGENCY, AS NOT ON THE AGENDA COMMENTS RELATING TO ITEMS ON TODAY'S AGENDA OR TO BE TAKEN AT THE TIME, THE ITEM IS HEARD STATE LAW PROHIBITS DISCUSSION OR ACTION ON ITEMS, NOT ON THE AGENDA.HOWEVER, CITY COUNCIL AND HOUSING AUTHORITY MEMBERS MAY BRIEFLY RESPOND TO STATEMENTS OR QUESTIONS AND MAYBE PLACED ON A FUTURE AGENDA.
ANGELA, DO WE HAVE ANY PUBLIC COMMENT CARDS? YES, SIR.
WE RECEIVED ONE COMMENT FROM MS. STEPHANIE HARPER AND IT READS, I TRIED TO BE THE MOST HONEST PERSON I CAN BE.
ALTHOUGH SOME FIND THIS HARSH, IT IS NOT ME, BUT THE TRUTH THAT IT IS HARSH AT TIMES, IT IS A QUALITY THAT I LIKE ABOUT MYSELF.
WHEN YOU LIE, YOU HAVE TO REMEMBER THAT LIE AND ACCOMMODATE FOR WHATEVER THAT LIE MAY BRING YOUR WAY.
THAT IS A GOOD REASON TO STAY HONEST.
BUT FOR THOSE WHO CAN'T LAWS WERE CREATED, LIKE TAKE, FOR EXAMPLE, MEASURE S ASKED SO THAT CITIZENS WOULD BE REPRESENTED BY SOMEONE WHO LIVES IN THEIR DISTRICT.
I HAVE ASKED THE FPPC AND THEY SAID IT WAS UP TO THE LOCAL LAWS ON ELECTIONS TO DETERMINE WHETHER OR NOT IT'S A CRIME.
SO I WOULD LIKE TO KNOW WHAT OUR LAWS ARE ON THIS SUBJECT AND EXACTLY WHAT IS THE LAW THAT WAS ENACTED BY MEASURE S AND THE COMMENTS AND NO OTHER COMMENTS WERE RECEIVED.
THIS IS THE, I THINK THE SECOND MEETING THAT WE'VE HAD, UH, COMMENTS ABOUT, UM, INDIVIDUALS NOT LIVING WITHIN THE DISTRICT OR THE CITY THAT THEY'RE RUNNING IN MORGAN, CAN YOU SHED SOME LIGHT TO, UM, WHAT OUR LAWS ARE AND WHOSE ULTIMATE AUTHORITY WOULD BE? THANK YOU, MAYOR AND COUNCIL, THE CHARTER THAT THE AMENDMENT THAT WAS APPROVED BY THE VOTERS CREATED THE DISTRICTS, UM, CORE OUR ELECTION PURPOSES.
AND IN THAT CHARTER THAT PROVIDES THAT THE CANDIDATES MUST COME FROM THE DISTRICT.
UM, THERE ARE TWO, THERE WERE TWO OPTIONS THAT WERE PRESENTED TO THE COUNCIL.
WHEN YOU PUT THIS ON THE BALLOT, ONE IS THAT CANDIDATES CAN COME FROM OUTSIDE THE DISTRICT, BUT BE ELECTED ONLY BY THE, THE, UH, VOTERS IN THE DISTRICT.
UM, YOU CHOSE THE OTHER ONE, WHICH IS NOT ONLY IS IT VOTE, OR THESE CANDIDATES VOTED BY THE MEMBERS OF THE DISTRICT, THE ELECTORS IN THE DISTRICT, YOU MUST COME FROM THE DISTRICT AS WELL.
I THINK THE CRITICISM IS THAT THERE MAY BE QUESTIONS ABOUT, UH, ONE OR MORE CANDIDATES AND WHETHER THEY ARE RESIDENTS WITHIN THE DISTRICT THAT THEY ARE SEEKING THE OFFICE FROM.
UM, AND THAT IS A QUESTION THAT, UM, WE DO NOT HAVE THE, UM, WE, WE ARE, I GUESS THE, THE, THE PROPONENT IS SEEKING US TO TAKE SOME SORT OF ACTION TO PREVENT AN, OF A CANDIDATE.
UH, IT HAS BEEN ON SPECIFIED IT SO FAR.
THEN, UH, THE COURT WOULD NOT STOP THE ELECTION.
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THEN REQUIRE IF THE PERSON THAT'S BEING CHALLENGED IS, UH, IS IN FACT ELECTED TO OFFICE.THEN THE COURT WOULD REQUIRE US TO GO THROUGH WHAT IS CALLED A QUOTE, WE'RE ONTO A PROCESS.
YOU HAVE TO GET LEAVE TO SUE FROM THE ATTORNEY GENERAL.
AND, UH, THEN THAT PERSON CAN SUE TO, TO REMOVE SOMEBODY FROM OFFICE.
IF THE ATTORNEY GENERAL BELIEVES THERE'S ENOUGH EVIDENCE TO SHOW THAT THAT PERSON IS NOT A RESIDENT OF THE DISTRICT.
SO THAT KIND OF GIVES YOU IN A NUTSHELL, THE OPTIONS, LIKE I SAID, THE PRE-ELECTION CHALLENGE IN MY VIEW IS NOT GOING TO TAKE ANYBODY OFF THE BALLOT OR KEEP THEM FROM OFFICE, BUT POST-ELECTION, UM, CHALLENGE WOULD BE THE PROCESS SOMEBODY COULD TAKE.
DO YOU HAVE ANY QUESTIONS? BE HAPPY TO TRY TO ANSWER IT? YEAH.
GARY HAD A QUESTION, MORGAN, IS THAT A CRIMINAL PENALTY? NO, IT'S A CIVIL ACTION TO REMOVE SOMEBODY FROM OFFICE.
SO IT'S NOT A CRIMINAL PROSECUTION AND THE COUNCIL COULD BE THE, THE GROUP THAT WANTS TO SEEK
UM, IT'D BE UP TO THE MAJORITY OF THE COUNCIL.
SO, SO AT THIS POINT, DURING THIS ELECTION CYCLE, THERE'S A WEEK AWAY.
THERE'S NO REAL ACTION THAT CAN BE TAKEN.
IF THE, BUT POST ELECTION, THERE COULD BE SOME FORM OF, OF LEGAL ACTION TAKEN.
SHOULD THAT PERSON WIN? IS THAT CORRECT? OKAY, GRAHAM, IS THERE, UM, I MEAN, OBVIOUSLY THE INTEGRITY OF OUR ELECTIONS IS, IS PARAMOUNT AND WE WANT SOMEONE REPRESENTING THE CITY TO LIVE IN THE CITY.
IS THERE ANYTHING THAT CAN BE DONE LOCALLY TO, TO ENSURE, YOU KNOW, PEOPLE RUNNING FOR OFFICE OR, UH, WHAT, WHAT DO WE, WHAT DO WE DO CURRENTLY AND WHAT IS THE VERIFICATION PROCESS? THAT'S A GOOD QUESTION RIGHT NOW.
AND I'M GOING TO ASK MS. CORTEZ TO JUMP IN IF I GET THIS WRONG, BUT OUR MUNICIPAL CODE REQUIRES AN INDIVIDUAL TO SHOW THAT THEY'RE REGISTERED TO VOTE IN THAT DISTRICT.
SO IT MEANS THEY'VE, THEY'VE SHOWN THE REGISTRAR VOTERS AND, OR HAVE INDICATED TO THE REGISTRAR VOTERS THAT WHERE THEIR, THEIR RESIDENCES.
UM, IN FACT, MS. CORTEZ SHARED WITH, UH, MR. DEMAYA AND I THIS MORNING, SOME THINGS THAT OTHER CITIES HAVE BEEN DOING THAT SHE'S DOING SOME RESEARCH ON WHERE IN ADDITION TO REGISTER OF VOTING, YOU NEED TO SHOW, UM, DRIVER'S LICENSE, UH, UTILITY BILLS.
I MEAN, YOU SHOWED THAT IF YOU WANTED TO SEND YOUR KID TO A LOCAL SCHOOL.
SO YOU THINK FOR COUNCIL, MAYBE THAT'S SOMETHING IT'S A LOW BAR.
UH, WE MAY DO SOME MORE EXPLORATION ON THAT.
MS. CORTEZ IS DOING THAT WORK RIGHT NOW.
AND IF IT MAKES SENSE, I THINK WE'LL BRING SOMETHING BACK TO THE COUNCIL SOMETIME IN THE SPRING, UM, FOR YOU TO CONSIDER.
YEAH, I THINK THAT'D BE HELPFUL.
I MEAN, JUST TO ENSURE THE PUBLIC'S TRUST THAT WE HAVE IT, AND WE'RE DOING OUR PART AS A CITY TO, TO MAKE SURE THAT, UM, WE'RE KEEPING OUR, THE INTEGRITY OF OUR ELECTIONS.
I QUESTION, IF THEY HAVE TO SHOW A DRIVER'S LICENSE AND OTHER THINGS, UH, WHEN THEY START, I DIDN'T HAVE TO SHOW MY, WELL, MAYBE I DID.
SO, UM, BUT, UH, I DON'T KNOW IF YOU HAVE TO SHOW YOUR DRIVER'S LICENSE WHEN YOU OFFICE AND MAKE IT BIGGER IN THAT DISTRICT, MR. MCCLELLAN, RIGHT NOW, YOU DO NOT, YOU JUST SHOW THAT YOU ARE ACTUALLY, WE VERIFY THAT YOU'RE REGISTERED TO VOTE IN THAT DIS IN THAT DISTRICT.
SO WE'LL LOOK AT YOUR VOTER REGISTRATION, AND IF IT'S WITHIN THE DISTRICT, THEN YOU'RE ELIGIBLE.
WELL, YOU CAN REGISTER FOR ANY DISTRICT YOU WANT TO PUT ON YOUR REGISTRATION PERIOD.
SO IT SOUNDS LIKE WE NEED TO, YEAH, I THINK THAT'D BE GREAT GRAHAM, IF WE CAN BRING SOMETHING TO COUNCIL TO, TO MOVE INTO VERIFY ANOTHER LAYER OF VERIFICATION.
ANGELA, DO WE HAVE ANY OTHER COMMENTS? NO MORE COMMENTS WERE RECEIVED, SIR.
UM, THERE ARE NO WRITTEN COMMUNICATIONS AND WE HAVE NO PUBLIC HEARINGS ON TODAY'S AGENDA.
NEXT IS ADMINISTRATIVE REPORTS.
WE HAVE THREE ADMINISTRATIVE REPORTS ON TODAY'S AGENDA.
[6. Adoption of a Pension Funding Policy RECOMMENDATION: That the City Council adopts the next Resolution, in order, to approve a Pension Funding Policy. ]
ITEM SIX IS THE ADOPTION OF A PENSION FUNDING POLICY STAFF.IF YOU WANT TO INTRODUCE THIS ITEM FAIRLY, UM, UH, MR. DEPUTY MAYOR MEMBERS OF THE COUNCIL FOR THIS PRESENTATION, I'M GOING TO BE JOINED BY OUR FINANCE DIRECTOR, CLAY, SHANE, ALONG WITH JULIO MORALES, FROM URBAN FUTURES, WHO'S BEEN ACTING AS OUR FINANCIAL ADVISOR AS WE'VE BEEN ANALYZING PENSION OBLIGATION, BONDS AND OTHER STRATEGIES TO, TO ADDRESS, UM, THE CITY'S CURRENT PENSION DEBT.
UM, SO THE KIND OF THE PURPOSE
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OF THIS AGENDA ITEM IS TO PRESENT NOT ONLY THIS POLICY, BUT TO GIVE THE COUNCIL AN UPDATE ON OUR STATUS REPORT ON OUR PENSION OBLIGATION AND CLAY WE'LL HANDLE THAT PART.AND THEN WE'LL CONCLUDE WITH JUST KIND OF A PREVIEW OF WHAT'S TO COME, UH, REGARDING PENSION OBLIGATION BONDS.
IN FACT, WE'RE, WE'LL BE PRESENTING AN ITEM AT THE NEXT COUNCIL MEETING, UM, OR A DECEMBER MEETING.
IT'S ONE OF THOSE MEETINGS COMING UP SOON ON, UM, UH, ACTIONS TO TAKE.
SO THERE'LL BE A LITTLE BIT MORE INFORMATION, BUT HULU MIRALIS FROM URBAN FUTURES WILL KIND OF GIVE US A PREVIEW OF THAT UPCOMING, UH, AGENDA ITEM.
SO, AS A REMINDER, THIS IS JUST, UH, AN ITEM THAT'S BEEN BROUGHT UP OVER A SERIES OF, OF ITEMS DEALING WITH PENSION FUNDING.
AND, UH, AGAIN, THEY'LL CONTINUE TO BE ITEMS INTO THE FUTURE, BUT BEFORE I KIND OF JUMP INTO THE PENSION FUNDING POLICY, I DID WANT TO REMIND THE COUNCIL OF KIND OF HOW WE GOT HERE AND MAYBE SOME BACKGROUND INFORMATION THAT WOULD BE USEFUL FOR THE COUNCIL.
I THINK ALCOHOL AND LIKE MOST CITIES, UM, ARE EXPERIENCING A DROUGHT, HAVE BEEN EXPERIENCING A DRAMATIC INCREASE IN OUR PENSION COSTS.
I THINK IT'S FAIR TO SAY THAT THERE ARE A LOT OF DIFFERENT REASONS FOR THIS.
AND A LOT OF THOSE REASONS ARE THINGS THAT OCCURRED BEFORE THE CITY COUNCIL, BEFORE ANY OF YOU WERE EVEN ON THE CITY COUNCIL.
AND AS A REMINDER, OUR PENSION COSTS REALLY COME FROM REALLY TWO DIFFERENT SOURCES.
ONE OUR CURRENT OBLIGATION FOR OUR CURRENT EMPLOYEES, WE CALL THAT OUR NORMAL COSTS.
AND THEN WE ALSO HAVE THIS UNFUNDED ACCRUED LIABILITY, AND IT'S REALLY THIS DEBT THAT HAS BUILT UP OVER YEARS.
AND, AND OVER THE YEARS, UH, PPARS IS REALIZED THAT THE CURRENT SYSTEM THAT'S IN PLACE IS, IS, UM, FAILING.
AND SO OUR RATES HAVE INCREASED OVER THE YEARS AND I'LL SHOW YOU JUST, YOU SEE A SLIDE NOW, I'LL TALK ABOUT THAT IN JUST A SECOND, BUT OUR RATES HAVE INCREASED OVER THE YEARS.
UM, AND WE HAVE THIS SORT OF THIS ROLLING, UH, FINANCING OF THIS UNFUNDED LIABILITY THAT THE CA THAT THE CITY HAS BEEN PAYING YEAR AFTER YEAR.
AND IT'S ABOUT A 20 YEAR ROLLING PENSION DEBT AND, UH, HERS CHARGES ABOUT A 7%.
WELL, RIGHT NOW, A 7% INTEREST RATE ON THAT.
SO, UM, IT'S A, IT'S A PRETTY LARGE DEBT, AND IT DOES HAMPER THE CITY'S ABILITY TO DO SOME OF THE THINGS THAT WE WANT TO DO.
IT'S IMPORTANT TO NOTE THAT THIS, THIS DEBT, UNLIKE YOUR HOME, YOUR HOME MORTGAGE, FOR EXAMPLE, YOU, YOU HAVE A FIXED HOME MORTGAGE AND EVERY YEAR AS YOU PAY THAT DOWN, BASED ON THE INTEREST RATE, YOUR RATE GOES, YOUR, YOUR OVERALL PRINCIPAL GOES DOWN, YOU'RE UP A YEAR.
THERE'S A LOT OF FACTORS THAT GO INTO THIS AND THIS, UH, UNFUNDED LIABILITY HAS TO DO WITH ACTUARIAL DATA, HAS TO DO WITH, UM, THINGS ASSOCIATED WITH, UM, UH, HOW WELL THE STOCK MARKET PERFORMED, ALL THOSE THINGS.
SO OUR ACTUAL ACTUARIAL DEBT CHANGES FROM YEAR TO YEAR.
SO, UM, WE'LL, WE'LL GET THE SLIDE BACK UP.
I JUST WANTED TO SHOW YOU THE LAST 10 YEARS WORTH OF CLAYS FEVERISHLY LOOKING TO GET THAT BACK UP, BUT I WANTED TO SHOW, UM, WHAT WE'VE BEEN PAYING FOR THE LAST 10 YEARS IN PENSION DEBT.
AND NOW THIS IS A REMINDER, THIS IS NOT JUST GENERAL FUND.
THIS IS THE ENTIRE CITY GENERAL FUND HAS THE MAJORITY OF THAT, BUT THIS IS OUR OVERALL PENSION DEBT.
SO THIS SLIDE SHOWS HOW MUCH DEBT WE'VE BEEN PAYING THE INCREASE IN DEBT, UM, SINCE 2011.
SO AS WE WERE COMING OUT OF THE RECESSION, AS YOU CAN SEE, IT'S A PRETTY DRAMATIC INCREASE IN OUR PENSION LIABILITY.
UM, IN FACT, IF YOU WERE TO LOOK AT OUR INCREASES IN REVENUES, IT'S PROBABLY FAIR TO SAY THAT ANY INCREASE IN REVENUE HAS GONE STRAIGHT TO PAYING OFF PENSION DEBT.
SO ANY, UM, ANY SURPLUSES MONIES WE'VE RECEIVED OVER THE YEARS HAS REALLY GONE TO THAT.
AND THAT, THAT PREVENTS THE CITY FROM DOING SOME OF THE THINGS THAT WE'D LIKE TO DO.
AND, AND FRANKLY, THIS IS NOT A UNIQUE ALCOHOL THING.
THIS IS ALMOST EVERY CITY IN THE STATE OF CALIFORNIA THING.
SO A LOT OF CITIES ARE STARTING TO LOOK AT SOME OF THE STRATEGIES THAT WE'VE BEEN LOOKING AT IN THE PAST FEW, IF WE CAN GO TO THE NEXT SLIDE, PLEASE.
SO THE, IMAGINE THE GRAPH THAT YOU HAD JUST SEEN BEFORE IT STARTED WITH FISCAL YEAR, 2010 11, AND THEN WE KIND OF END WITH FISCAL YEAR 20, 21, 10 YEARS APART.
IT SHOWS THE GENERAL FUND OVERALL EXPENDITURES, ALONG WITH THE CALPERS CONTRIBUTION.
SO YOU CAN SEE, YOU KNOW, 10 YEARS AGO, 16% OF THE GENERAL FUND EXPENDITURE WAS GOING TOWARDS PENSION OBLIGATIONS.
THAT DOESN'T SOUND LIKE A HUGE PERCENTAGE INCREASE.
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YOU LOOK AT THE DOLLAR AMOUNT IS JUST ASTRONOMICAL.WE WERE PAYING $8.2 MILLION IN PENSION COSTS A DECADE AGO, AND NOW WE'RE UP TO $17.8 MILLION.
THAT'S JUST A HUGE AMOUNT OF INCREASE OVER THE YEARS.
IN FACT, WE HAVE NO OTHER EXPENDITURE INCREASING AT THAT RATE.
AGAIN, ONE OF THE REASONS WHY WE THINK WE NEED TO START TACKLING THIS, UH, A LITTLE MORE AGGRESSIVELY, WE CAN GO TO THE NEXT SLIDE.
THE NEXT SLIDE SHOWS WHAT WE PROJECT OUT, AND I SHOULD SAY WE DON'T WHAT WE, WHAT CALPERS PROJECTS OUT FOR THE NEXT DECADE.
YOU CAN SEE THAT INCREASES IN AS DRAMATIC, BUT WHAT THIS DOESN'T INCLUDE, THIS DOESN'T INCLUDE ANY ACTUARIAL CHANGES.
DOES IT INCLUDE ANY OTHER, UM, BLIPS IN THE MARKET? IT DOESN'T INCLUDE, UM, ANY ADDITIONAL DEBT THAT MAY COME ON.
SO WE HAVE A FEELING THAT THIS CHART, ALTHOUGH DECEPTIVELY FLAT WILL END UP LOOKING A LITTLE BIT MORE LIKE THE FIRST CHART THAT I SHOWED YOU YEAR AFTER YEAR, WE'LL BE GETTING, WE'LL BE GETTING SOME INCREASES.
UM, I CANNOT FORESEE IN THE NEAR FUTURE WHERE WE'LL ACTUALLY HAVE A DROP AS IT'S SHOWN IN FISCAL YEAR 24, 25 IN OUR ACTUAL PENSION COSTS, UNLESS WE DO SOMETHING DIFFERENT THAN WE HAVE BEEN DOING OVER THE YEARS.
SO IF YOU CAN GO TO THE NEXT SLIDE.
SO AS A REMINDER, WE'RE PRESENTING THIS PENSION FUNDING POLICY, AND AS WE PRESENTED SOME OF THESE DIFFERENT PLANS OF HOW TO FINANCE OUR PENSION DEBT, UM, UH, PENSION OBLIGATION BONDS IN PARTICULAR, ONE OF THE THINGS THAT THE COUNCIL ASKED STAFF TO DO IS COME BACK WITH AN ACTUAL FUNDING POLICY.
I THINK IT'S IMPORTANT THAT WE HAVE A POLICY THAT NOT ONLY GIVES DIRECTION AND SOME STRUCTURE AND SOME POLICY POLICIES FOR THE EXISTING CITY COUNCIL AND THE STAFF, BUT ALSO IN, FOR THE FUTURE.
I THINK IT'S IMPORTANT TO REMEMBER THAT, UM, THIS IS SOME DISCIPLINE THAT WE'RE GOING TO HAVE TO HAVE OVER THE YEARS IN ORDER TO FREE UP REVENUE AND FREE UP RESOURCES TO DO THINGS AT THE CITY, UH, IS THAT OUR RESIDENTS EXPECT FROM US.
SO, UM, IF YOU GO TO THE NEXT SLIDE, I'M JUST GOING TO HIGHLIGHT SOME OF THE BIG KEY PROVISIONS OF THE AGREEMENT.
SO ONE IS WE HAVE A SECTION THERE THAT SAYS THAT THE CITY WILL ACTUALLY MAKE ALL OF ITS PAYMENTS.
AND I KNOW THAT MAY SOUND SILLY THAT YEAH, OF COURSE IT WILL INCLUDE OUR MAKE OUR PAYMENTS, BUT WE THOUGHT IT'S IMPORTANT THAT IT'S, IT'S A PRACTICE THAT WE'VE MADE OVER THE YEARS.
WE'VE NEVER MISSED A, UM, A PENSION PAYMENT.
AND I THINK IT'S ONE THAT IT'S A PRACTICE THAT WE, WE THINK THAT THE COUNCIL SHOULD COMMIT TO DOING INTO THE FUTURE.
WE ALSO THINK THAT, UH, SETTING A TARGET OF A FUNDING LEVEL MAKES SOME SENSE.
WE ARE, WE ARE VERY FAR AWAY FROM WHAT'S IN THE PLAN.
IT'S, UM, THE FUNDING TARGET WE'RE RECOMMENDING IS 90%, BUT I THINK IF WE HAVE THIS IN MIND, IF THIS IS SOMETHING THAT WE'RE TRYING TO SEEK, IT WILL HELP US BE MORE DISCIPLINED.
AS WE HAVE RESERVES, AS WE HAVE SURPLUS MONEY, AS WE HAVE ONE TIME MONEY TO ALLOCATE THOSE FUNDS TOWARD REACHING THAT GOAL.
BUT HAVING THAT GOAL ALSO GIVES THE COUNCIL SOME FLEXIBILITY.
UM, AND, UH, AND ACTUALLY ABOUT TWO SLIDES, YOU CAN GO TO THE NEXT SLIDE.
WE ALSO THINK THAT THERE'S SOME VALUE IN THE COUNCIL HAVING A FORMAL PRESENTATION ANNUALLY ABOUT WHERE WE ARE SORT OF THE, THE STATE OF OUR PENSION.
UM, AND WE WOULD RECOMMEND THAT IT BE DONE AS AN ANNUAL PRESENTATION AT A PUBLIC COUNCIL MEETING, WHERE WE TALKED ABOUT THE NEW AMOR AMATORIZATION LEVELS.
AND THEN IF THERE ARE SOME BUDGET CONSIDERATIONS THAT WE NEED TO THINK ABOUT, WE CAN START WORKING ON THOSE WELL IN ADVANCE OF THE BUDGET.
SO WE CAN PLUG THOSE IN TO THE NEXT BUDGET THIS WAY.
UM, THIS, THIS HUGE COSTS WILL HELP DRIVE SOME BUDGET DECISIONS IN THE FUTURE RATHER THAN IT BEING AN AFTERTHOUGHT.
SO WE THINK THAT WE SHOULD BE THINKING ABOUT THAT FIRST AND THEN THINKING ABOUT OTHER THINGS THAT WE'D LIKE TO PURCHASE.
I ALSO THINK THERE'S SOME VALUE IN, UM, HAVING AN ACTUAL STATEMENT IN THE POLICY THAT TALKS ABOUT RESERVE FUNDS THAT TALKS ABOUT SAVINGS SET HAVE BEEN CREATED FROM, UM, UH, AN ALTERNATIVE, UH, PENSION FINANCING PROGRAM, LIKE A PENSION OBLIGATION BOND, A ONE-TIME MONIES, THAT THERE IS A REAL CONSIDERATION OF USING THOSE FUNDS SPECIFICALLY TOWARDS PAYING DOWN ANY PENSION DEBT THAT WE HAVE.
NOW, THIS IS A, UH, THOU SHALT.
UH, IT'S NOT ONE OF THOSE STATEMENTS BECAUSE WE THINK THE COUNCIL DOES NEED FLEXIBILITY.
WE THINK THAT THE CITY NEEDS FLEXIBILITY AS WE HIT AN ECONOMIC DOWNTURN.
MAYBE IT'S NOT TO USE THOSE, UH, LAYING OFF 10 POLICE OFFICERS MAY NOT MAKE AS MUCH SENSE AS PAYING DOWN SOME DEBT, BUT WE THINK THE SHALL ENDEAVOR IS SOME STRONG ENOUGH LANGUAGE THAT GIVES STAFF THE, UM, DIRECTION THAT WE THINK WE NEED TO PRESENT A BUDGET THAT WE THINK MEETS THE INTENT OF THE CITY COUNCIL.
[00:30:01]
WE'LL GO TO THE NEXT SLIDE.UM, WE'VE BEEN TALKING ABOUT SETTING UP A SECTION ONE 15 TRUST.
WE THINK THAT THE POLICY SHOULD PROBABLY ADDRESS THAT.
UM, THE LAST COUNCIL MEETING YOU SAW, UM, SOME BUDGET ALLOCATION OF SOME MONIES TOWARDS THAT, UH, SEXUAL ONE 15 TRUST.
AND AS A RE RECOLLECTION, WE CAN PUT ANY RESERVE MONIES, ANY SURPLUS MONIES, ANY ONE-TIME MONEY IS INTO THAT.
I WAS TO STILL, UM, WE CAN PUT ANY MONEY INTO THAT TRUST FUND, AND THAT BECOMES A TRUST THAT BECOMES THAT TRUST BECOMES A PROTECTED BOX.
AND SO, UH, AS MONIES GO IN THERE, THEY CAN ONLY BE USED FOR PENSION RELATED COSTS.
SO YOU CAN'T USE THEM TO PAINT YOUR ROLES OR TO GIVE RAISES TO STAFF FOR EXAMS. UH, NEXT SLIDE.
UM, IT ALSO ADDRESSES THE ABILITY TO CONSIDER PENSION OBLIGATION BONDS, BUT RATHER THAN JUST SAYING, UH, THE CITY SHOULD, SHOULD THINK ABOUT THESE.
IT ACTUALLY GIVES SOME VERY SPECIFIC ITEMS THAT WE NEEDED EVALUATE PENSION OBLIGATION BONDS, BY THAT IT TALKS ABOUT SOME SPECIFIC ELEMENTS THAT SHOULD BE IN THE STRUCTURING OF THE
IT TALKS ABOUT HOW WE SHOULDN'T BE FINANCING NORMAL COSTS.
THIS SHOULD ONLY BE FINANCING, UM, OLD DEBT OR UNFUNDED PENSION DEBT AND NOT PAYING FOR ONGOING OPERATIONAL COSTS, WHICH SOME CITIES HAVE DONE IN THE PAST.
UM, IT TALKS ABOUT THAT THERE, THERE MUST BE A DEMONSTRATED CASHFLOW SAVINGS.
SO IT DOESN'T MAKE SENSE TO ISSUE $30 MILLION IN BONDS IF YOU'RE, IF YOU'RE SAVING 1%.
SO THERE SHOULD REALLY BE A DEMONSTRATED SAVINGS.
AND THEN ULTIMATELY, UH, TAKING THE SAVINGS FROM THOSE POV'S AND PUTTING THEM BACK INTO, UM, PAYING DOWN DEBT MAKES A LOT OF SENSE.
SO WE'VE ACTUALLY INCLUDED THAT, THAT STATEMENT IN TWO DIFFERENT SECTIONS OF THE POLICY, BECAUSE WE THINK IT'S THAT IMPORTANT OF A THING TO REMIND OURSELVES AND HAVE SOME DISCIPLINE IN THAT AREA.
UH, THE LAST SLIDE THAT I'LL TALK ABOUT IS IN THE EVENT THAT THE CITY HAS A SUPER FUNDED, UM, STATUS FOR ONE OF ITS PENSION PLANS, WHICH BY THE WAY, I DON'T FORESEE THAT HAPPENING ANYTIME SOON, UNLESS THE STOCK MARKET GOES CRAZY FOR THE NEXT 10 YEARS.
UM, BUT IN THE EVENT THAT THAT DOES OCCUR AND WHAT THAT MEANS IS WE'RE SO WELL-FUNDED THAT PERS NO LONGER CHARGES US OR MASSIVELY REDUCES OUR PENSION COSTS.
UM, SOME CITIES IN THE PAST, INCLUDING CITY OF ALCOHOLISM, WHEN WE WERE SUPER FUNDED DECADES AND DECADES AND DECADES AGO, WE WOULD USE THOSE FUNDS TO GIVE EITHER, UM, MORE BENEFITS THAT WE COULDN'T AFFORD, UM, OR TO STOP PAYING, UH, MAKING ANY CONTRIBUTIONS WE WOULD RECOMMEND IN THE EVENT THAT THAT HAPPENS, THAT WE CONTINUE TO CONTRIBUTE TO OUR, OUR, UM, PROGRAM SO THAT IN THE EVENT OF A DOWNTURN, WE HAVE THAT RESERVE AVAILABLE.
WE PAY THAT YOU CONTINUE TO PAY DOWN ANY DEBT WITH THAT.
SO, UM, AGAIN, I DON'T SEE US GETTING INTO A POSITION WHERE WE HAVE A SUPER FUNDED PENSION PLAN, BUT JUST IN THE EVENT THAT WE DO, IT GIVES THE COUNCIL SOME, SOME IMPETUS FOR STAYING TRUE TO, UM, MAINTAINING OUR PENSION SYSTEM INTACT.
SO WITH THAT, I'M GOING TO TURN THE TIME OVER TO MR. SHANE.
WHO'S GOING TO GO OVER OUR PENSION, UM, STATUS REPORT.
AND THEN MR. MIRALIS, WHO WE'LL TALK ABOUT WHERE WE'RE AT WITH OUR PITCH OBLIGATION BONDS THEY'LL COME BACK TO ME, WILL ANSWER ANY QUESTIONS THAT THE COUNCIL MAY HAVE.
SO WITH THAT, MR. SHANE, THANK YOU, MR. MITCHELL, GOOD AFTERNOON ON OUR BOARD, DEPUTY MAYOR AND DISTINGUISHED MEMBERS OF THE CITY COUNCIL.
THANK YOU FOR YOUR PATIENCE DURING OUR NAVIGATION PROBLEMS OR RATHER MY NAVIGATION PROBLEMS. SO PRESENTED AS A COMPONENT OF THE, UH, PROPOSED PENSION FUNDING POLICY IS A COMPONENT TO, UH, BRING TO THE CITY COUNCIL ON AN ANNUAL BASIS, AN UPDATE ON THE STATUS OF THE TWO PENSION PLANS.
UM, TYPICALLY WE RECEIVE A NEW VALUATION REPORT FROM CALPERS, USUALLY BETWEEN JULY AND OCTOBER EACH YEAR.
SO THAT IS PER PRETTY REGULARLY WILL FALL DURING THE FALL SEASON.
IT'S THE PERFECT TIME TO GET OUT AHEAD OF OTHER DECISION-MAKING AND PERHAPS IN CONJUNCTION WITH OUR FIRST QUARTER REPORT.
SO IT'S A WONDERFUL TIME TO SIT DOWN AND REALLY FOCUS ON THIS.
UM, ONE OF THE PRIMARY COMPONENTS IS THE INFORMATION PRESENTED ON THIS FLIGHT.
AND I RECOGNIZE THIS AS A VERY, UH, DEBT SLIDE AND CONTAINS A LOT OF INFORMATION, BUT I WANTED TO TALK, I WANTED TO PRESENT IN THIS WAY, SO I COULD TALK THROUGH A COUPLE OF THINGS HERE.
UM, A LOT OF THE BOTTOM LINE THAT MOST PEOPLE GO TO WHEN THEY'RE TALKING ABOUT PENSIONS, IT HAS TO DO WITH THAT FOURTH COLUMN FROM THE LEFT, THE UNFUNDED COLUMN, THAT IS OUR UNFUNDED
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PENSION LIABILITY AND THE STATUS, BUT IT'S IMPORTANT FOR US TO UNDERSTAND WHAT CONTRIBUTES TO THAT BALANCE AND HOW IT CHANGES OVER TIME.UM, THERE REALLY ARE TWO SIDES TO THIS EQUATION, THE TOTAL LIABILITY, AND THAT IS THE BENEFITS THAT OUR EMPLOYEES HAVE EARNED OVER TIME AND THAT THEY'RE ENTITLED TO.
AND THERE'S ALSO THE ASSETS, WHICH ARE THE MONIES THAT WE HAVE SET ASIDE TO PAY THOSE BENEFITS.
THE DIFFERENCE OF WHICH IS THE UNFUNDED LIABILITY, EACH SIDES OF THAT EQUATION, THE LIABILITY AND THE ASSETS, BOTH MOVE OF EACH OTHER FOR A VARIETY OF REASONS.
FOR EXAMPLE, THE LIABILITY MAY CHANGE BECAUSE WE'VE INCREASED OR DECREASED STAFFING WE'VE GIVEN OR NOT GIVEN RAISES PEOPLE LIVE LONGER OR LESS LONG.
THINGS LIKE THAT WILL CONTRIBUTE TO CHANGES IN THE LIABILITY.
ON THE ASSET SIDE, INVESTMENT EARNINGS ARE THE BIG PLAYERS THERE.
UM, AS, YOU KNOW, EARNING MORE OR LESS THAN THE TARGET AMOUNTS WILL DRIVE THAT CHANGE AS WELL.
UM, AND OF COURSE, AS BENEFITS ARE PAID, IT WILL AFFECT BOTH COLUMNS.
SO IT'S IMPORTANT TO UNDERSTAND WHAT IS DRIVING THAT UNFUNDED LIABILITY.
IT'S, IT'S VERY RARELY A SINGLE THING.
IT'S USUALLY A BASKET OF MULTIPLE THINGS, ALL CHANGING AT ONE TIME.
UH, PENSION PLAN MANAGEMENT IS A VERY DYNAMIC, UH, UH, THING TO UNDERTAKE AND CA HAS MANY COMPONENTS, UM, FROM OUR LAST VALUATION, WHICH WAS AS OF JUNE 30TH, 2018, WE CAN SEE THAT THE TOTAL UNFUNDED LIABILITY HAS INCREASED BY APPROXIMATELY $3 MILLION.
UM, AND YOU OF COURSE SEE CHANGES ON BOTH SIDES OF THAT EQUATION.
AND OUR FUNDING STATUS HAS IMPROVED FROM 63.8% TO 64.2%.
PART OF THIS IS THE ADDITION OF NEW AMORTIZATION BASIS EACH YEAR, WHEN THE ACTUARIES RECALCULATE, OUR LIABILITIES AND ASSETS, THEY RECOGNIZE THAT EVENTS HAVE OCCURRED THAT HAVE CAUSED THEM TO MISS THE TARGETS FOR A NUMBER OF REASONS.
AND THAT'S ADDED TO OUR AMORTIZATION TABLE, WHICH IS BASICALLY A BREAKDOWN OF THE UNFUNDED LIABILITY.
BOTH OF OUR PLANS HAD TWO LINES EACH THIS YEAR, UH, COMPRISING OF INVESTMENT GAINS AND LOSSES, WHERE THAT IS ABOVE AND BELOW THE TARGET EARNINGS AMOUNT AND NON-INVESTMENT GAINS AND LOSS, WHICH IS PRETTY MUCH EVERYTHING ELSE THAT'LL AFFECT THE PLAN.
UM, IN TOTAL, UH, THE NET IS ABOUT AN INCREASE IN THE LIABILITY AS A RESULT OF THIS ACTIVITY BY APPROXIMATELY A MILLION DOLLARS.
THE MAJORITY OF THE REST OF IT IS DUE TO THE INTEREST ON THE PREVIOUSLY EXISTING, UH, AMORTIZATION LEVELS.
UM, AND I WOULD JUST WANT TO MENTION ONE THING HERE THAT EVEN THOUGH THIS IS A MILLION DOLLAR INCREASE, UH, THROUGH THIS AMORTIZATION LEVEL, THIS IS HALF OF 1% OF THE UNFUNDED LIABILITY AND 17% OF 1% OF THE TOTAL LIABILITY IN THE FRONT.
SO THESE KINDS OF NUMBERS IS PRETTY MUCH A BEST CASE SCENARIO OF WHAT WE COULD EXPECT FOR NEW AMORTIZATION BASIS.
THIS IS PRETTY MUCH A FLAT SCENARIO, AN ADDITIONAL COMPONENT STRAIGHT OUT OF THE ACTUARIAL REPORTS IS THIS GRAPH.
AND I REALLY LIKED THIS PRESENTATION.
I LIKE THE EFFICIENCY AT WHICH THIS PRESENTS THE INFORMATION, NOT NECESSARILY THE STORY IT'S TELLING WHAT THIS IS, IS A 20 YEAR HISTORY OF INVESTMENT RETURNS FROM CALPERS EACH YEAR SHOWS ITS INDIVIDUAL RETURNS ABOVE 0% IS ABOVE THE LINE.
AND OBVIOUSLY IF IT'S A LOSS IT'S BELOW THE LINE, UM, HOWEVER, THIS IS SOMEWHAT MISLEADING BECAUSE THE WHOLE PLAN IS BUILT ON THE EXPECTATION THAT THE PLAN IS GOING TO EARN AT THE CURRENT TIME 7% INVESTMENT GOING FORWARD.
SO REALISTICALLY THE RIGHT WAY TO LOOK AT THIS AS NOT NECESSARILY ABOVE OR BELOW ZERO, BUT ABOVE OR BELOW THAT THIN BLUE LINE, WHICH REPRESENTS THE DISCOUNT RATE AT THAT TIME.
UH, IN FACT, FUTURE VERSIONS OF THIS REPORT, I MAY ALTER IT TO, TO DEMONSTRATE THAT, UM, ONE THING THAT'S INTERESTING HERE, JUST TO, UH, EXPRESS SOME OF THE FRUSTRATIONS I'VE HAD WITH THIS INFORMATION OVER TIME, IF YOU NOTICE THE DOTTED LINE, THAT'S A, FIVE-YEAR ROLLING AVERAGE OF CALPERS RETURNS.
AND IF YOU NOTICE HOW MUCH TIME THAT LINE SPENDS BELOW THE BLUE LINE, THAT'S EXPECTED AND THAT'S HELPED TO CONTRIBUTE TO THAT UNFUNDED LIABILITY.
ADDITIONALLY, EACH ACTUARY REPORT PRESCRIBES THE FOLLOWING YEAR'S, UH, REQUIRED ADJUSTMENTS
[00:40:01]
OR PAYMENTS TO CALPERS.THESE ARE EXPRESSED TO SEPARATE SEPARATE COMPONENTS FOR NORMAL COSTS, WHICH IS THE CURRENT YEAR'S COST OF NEW BENEFITS, AS WELL AS THE AMORTIZATION OF THE UNFUNDED LIABILITY.
NOW THAT FYI 22 NUMBER IS THE PUBLISHED REQUIRED NUMBER FOR NEXT YEAR'S BUDGET.
HOWEVER, THE FOLLOWING YEARS ARE PURELY INFORMATIONAL AND ARE PROJECTED IN THE VERY NEXT ACTUARIAL REPORT.
THERE MAY OR MAY NOT BE NEW AMORTIZATION LEVELS THAT WILL AFFECT THAT NUMBER, BUT AS OF WHAT THEY HAVE RIGHT NOW, THAT'S THEIR BEST ESTIMATE OF WHAT WE WILL EXPERIENCE GOING FORWARD.
UM, AS YOU CAN SEE, NORMAL COST FOR BOTH OF THE PLANS IS FAIRLY CONSISTENT OVER TIME.
UM, I WOULD NOT EXPECT TO SEE VERY MANY SCENARIOS WHERE YOU SEE THAT CHANGE DRAMATICALLY YEAR TO YEAR.
UM, MOST OF OUR FOCUS IS THE UNFUNDED LIABILITY AMORTIZATION, WHICH YOU CAN SEE FOR EACH OF THE PLANS THERE, UH, IN FYA 22, UH, THE UNFUNDED LIABILITY PAYMENT IS APPROXIMATELY 16 AND A HALF MILLION DOLLARS.
AND THAT IS, UH, ABOUT SIX AND A HALF MILLION DOLLARS LESS THAN THE PROJECTED TOTAL CONTRIBUTION WE'RE ANTICIPATING FOR OUR FLIGHT.
22 OF APPROXIMATELY $23 MILLION
NOW, LOOKING FORWARD A LITTLE BIT TO THE PENSION OBLIGATION BOND SCHEDULE, LIKE TO INTRODUCE
SO WITH THAT, I'D LIKE TO INTRODUCE JULIO, THANK YOU, CLAY AND GOOD AFTERNOON, MAYOR MEMBERS OF THE CITY COUNCIL.
I HAVE TO REALLY COMMEND STAFF.
THEY DID A GREAT JOB IN SUMMARIZING AND ACTUALLY ADDED A GRID COMPONENT TO A SUPER FUNDED, UH, TO YOUR PENSION FUNDING POLICY.
SO WE'VE BEEN WORKING, UH, FOR SEVERAL MONTHS WITH THE STAFF.
AND OF COURSE I'VE MADE A COUPLE OF PRESENTATIONS THAT A COUNCIL, IF YOU RECALL, THE LAST TIME WE CAME AND OBTAINED AUTHORIZATION, IT GOES THROUGH A VALIDATION PROCEEDING, WHICH GIVES YOU LEGAL AUTHORITY TO ISSUE BONDS UNDER A REFUNDING PROVISION.
IN OTHER WORDS, THAT ALLOW YOU TO ISSUE THESE PENSION OBLIGATION BONDS WITH THAT WITHOUT HAVING TO GO TO GET VOTER APPROVAL, LIKE MOST BONDS, AND THAT VALIDATION WILL COME DUE ON NOVEMBER 8TH.
SO WE WILL HAVE THE ABILITY TO ISSUE PENSION OBLIGATION BONDS LEGALLY ON THAT DATE.
AND ON NOVEMBER 10TH, WE'RE GOING TO COME BACK TO THE CITY COUNCIL AND ASK FOR THE FINAL APPROVAL TO ISSUE PENSION OBLIGATION BONDS.
AND AT THE SAME TIME, YOU'RE GOING TO APPROVE THE PRELIMINARY OFFICIAL STATEMENT, WHICH IS AN OFFERING DOCUMENT THAT WE SEND OUT TO INVESTORS.
UM, AND IT STATES A SUMMARY INFORMATION ABOUT THE CITY, ITS FINANCIAL STANDING, ITS FINANCIAL, UM, AUDITING, UH, STATEMENTS AS WELL AS OTHER INFORMATION ABOUT THE PLAN OF FINANCE.
SO THAT'S THE NEXT, UH, NEXT MONTH AND IN SHORT ORDER, UM, WE'LL BE COMING TO YOU FOR THAT APPROVAL IN ORDER TO ISSUE THE BONDS WE'RE GOING TO, UH, NEED TO GET A RATING FROM STANDARD AND POOR'S, THIS IS STANDARD PRACTICE.
WE WILL HAVE A PRESENTATION ON THE 12TH IS WHAT WE'RE SCHEDULED, I THINK FOR TWO O'CLOCK.
SO WE HOPE TO BE SOMEWHERE IN THE, IN THE AA CATEGORY, IT'S IMPORTANT TO GET THE STRONGEST RATING.
AND THIS IS LIKE THE EQUIVALENT TO YOUR CREDIT RATING, RIGHT? GREAT CREDIT READING THEIR MORTGAGE.
AND IT'S THE SAME THING ON THE CITY'S BEHALF, THE STRONGER THE RATING, THE LOWER THE DEBT.
IN FACT, TODAY I JUST FINISHED PRICING THE CITY OF ARCADIA WHO HAD A AAA RATING AND THEY HAD A PHENOMENAL RATE.
SO, UM, I THINK IN THIS MARKET AND KIND OF WITH SOME OF THE VOLATILITY, THE RATING, ISN'T REALLY GOING TO BE CRITICAL.
WE HOPE TO RECEIVE OUR RATING FROM THE RATING AGENCY BY THE END OF THE MONTH OF NOVEMBER, AND THEN HOPEFULLY PRICE THE BOND SOMETIME IN DECEMBER.
SO THIS TRANSACTION B SHOULD BE CLOSED BY YEAR END.
HOWEVER, I SHOULD NOTE THAT WE'VE BEEN HAVING CONVERSATIONS WITH, UH, CITY STAFF ABOUT THE VOLATILITY IN THE MARKET.
SO WE'RE HOPING TO GET AUTHORIZATION TO SELL THE BONDS AS SOON POSSIBLE AND THEN KIND OF PLAY IT BY EAR, BOTH ON THE UNDERWRITER WHO WAS SELECTED, WHICH WAS BANK OF AMERICA AND OURSELVES GAUGING THE MARKET TRENDS AND SEEING WHAT WOULD BE THE BEST TIME, THIS IDEAL TIME AND THE AMOUNT AND STRUCTURE TO ISSUE AT THAT TIME.
UM, THAT'S ALL THAT I HAVE REGARDING THAT.
ANY QUESTIONS I'LL HAND IT BACK TO YOU.
SO COUNSEL, ANY QUESTIONS ABOUT, UM, SORT OF THE, WE KIND OF PUT
[00:45:01]
THREE DIFFERENT PRESENTATIONS INTO ONE, BUT AS YOU REMEMBER, AS YOU RECALL, WERE, UM, HAVING THE COUNCIL IS CONSIDERING THE ACTUAL POLICY.SO WE CAN ANSWER QUESTIONS ABOUT ANY OF THOSE TOPICS, BUT WE WOULD LIKE TO COME BACK AT SOME POINT AND ADDRESS THE FUNDING POLICY QUESTION.
UM, BASICALLY WHAT WE'RE DOING IS WE'RE GOING OUT TO, UH, HAVE A BOND TO PAY OFF A PENSION OBLIGATION BOND, UH, OR OBLIGATION, UH, BASICALLY AT A LOWER RATE, LIKE MAYBE 3%, TWO AND A HALF, OR, UH, WHICH IS MARKET RATE AT THIS TIME, JUST A MALL, UM, UH, FEDERAL GOVERNMENTS THAT LIKE ORDER REQUEST.
UM, AND THEN, THEN WE USE THAT TO PAY DOWN OUR PENSION OBLIGATION, UH, 7%.
SO WE, WE, UM, HAVE A DIFFERENCE OF ABOUT 4%, LET'S SAY, UM, THAT WE CAN USE TO PAY OUT OUR PENSION OUT QUICKER.
UH, AND THAT'S WHAT YOU BASICALLY SAID, RIGHT? GRAHAM THAT'S EXACTLY RIGHT.
YOU, YOU PROBABLY KNOW PEOPLE THAT HAVE REFINANCED THEIR HOME, TAKEN THE SAVINGS AND GONE OUT AND BOUGHT A TOY, LIKE A BOAT OR A MOTORCYCLE, RIGHT.
WE'RE RECOMMENDING WE WON'T BE BUYING ANY BOATS.
UM, WE YOU'D RECOMMEND, WE PUT THAT BACK INTO OUR MORTGAGE.
SO THAT'S THE GOAL AND THAT'S, AND THAT'S WHAT THE PENSION FUNDING POLICY DOES.
IT GIVES THE COUNCIL THE DISCIPLINE TO DO THAT.
ANY OTHER QUESTIONS? SO MY ONE LAST THING THAT PENSION FUNDING POLICY NEEDS TO BE ADOPTED BY THE COUNCIL PRIOR TO YOU GOING TO THE RATING AGENCY, BECAUSE WE BELIEVE IT'S A CRITICAL ELEMENT IN YOUR RATING PLAN.
SO KNOWING AND STATING THAT YOU'VE GONE THROUGH THE PROCESS AND ADOPTED THAT AND GONE THROUGH A COUNCIL, A WORKSHOP TO GO OVER IT IS REALLY CRITICAL.
IT'S A CRITICAL STEP IN YOUR READING.
WHAT'S THE, UH, ESTIMATE OF, UH, WHAT THE BOND, UH, CHARGES.
OH, UM, I ANTICIPATE IF YOU, TO, IF YOU WERE TO OBTAIN A AA RATING, IT'LL BE SOMEWHERE, I HOPE IN THAT IN THE LOW TO MID THREES, WHICH IS, UH, YOU KNOW, CUTTING YOUR INTEREST RATE IN HALF, RIGHT.
AND LIKE BUY AND SOLAR AND PAYING HALF THE GAS AND ELECTRIC.
A LOT OF PEOPLE LIKEN IT TO TAKING A, YOU KNOW, ONE CREDIT CARD.
AND THE OTHER ONE THAT SAID HALF YOU SAW WILL HAVE PAYMENTS, BUT AS IS, UH, GRAHAM STATED, YOU'RE ABLE TO PLAY SO MUCH BETTER POSITIONS AND HOPEFULLY YOU TAKE THOSE SAVINGS TO, UH, TO PAY DOWN YOUR MORTGAGE FURTHER.
COUNSEL STEVE, I THINK YOU HAD A QUESTION.
CAN WE GO BACK TO SLIDE 11 NORMAL CAR, UH, BULLET POINT NUMBER TWO SHALL NOT FINANCE NORMAL COST IS NORMAL COST NINE.
OUR NORMAL COST NON PENSIONABLE COSTS OR ARE THESE THE NORMAL COSTS OF ADMINISTERING THE PENSION OBLIGATION BOND PROGRAM? SO, OKAY.
SO THERE'S, THERE'S TWO DIFFERENT.
THERE'S REMEMBER OUR CAO, OUR ANNUAL CALPERS PAYMENT IS MADE UP OF TWO DIFFERENT COMPONENTS.
ONE IS THAT UNFUNDED ACTUARY, ACTUARY LIABILITY, OR ACTUAL, UM, THE UNFUNDED LIABILITY, RIGHT.
AND THAT'S REALLY WHAT THE POB SHOULD BE PAYING DOWN.
THE OTHER IS WHAT THE CITY'S CONTRIBUTING TO PAY FOR EXISTING EMPLOYEES.
DEBT IT'S REALLY OUR OPERATIONAL COSTS.
SO, UM, IT'S LIKE WHEN YOU HIRE SOMEBODY, YOU PAY THEM A SALARY, YOU PAY THEM THEIR MEDICAL BENEFITS AND YOU PAY THEM, YOU CONTRIBUTE TO THEIR PENSION COSTS.
UM, YOU'RE NOT WHAT WE'RE RECOMMENDING IS THAT ANY POV'S THAT ARE DONE DO NOT HELP PAY FOR THOSE BASIC WHAT I CALL OPERATIONAL COSTS.
SO, UM, THE CITY'S CONTRIBUTION FOR MY PENSION, FOR EXAMPLE, SHOULD NOT BE FINANCED BECAUSE NOW WE'RE JUST FINANCING A FEATURE DEBT.
SO IT'S REALLY ONLY THE UNFUNDED LIABILITY THAT'S BEING FINANCED.
UM, SO ONE OF MY QUESTIONS IS WE HAVE AN ELECTION NEXT WEEK, THIRD, AND I'M TRYING TO FIGURE OUT THE STEPS HERE ON NOVEMBER 10TH.
IS THAT THE LAST TIME WE'RE GOING TO VOTE ON SOMETHING? YEAH, WELL WE, WE
[00:50:01]
WOULD RECOMMEND, WELL, YES AND NO.WE'RE GOING TO SEEK SOME DIRECTION FROM THE COUNCIL OF, UM, AND I HAVEN'T GONE OVER THIS WITH JULIO, BUT TYPICALLY WHAT WE WOULD DO IS WE WOULD ASK FOR WHAT'S THE MINIMUM, WHAT'S THE MINIMUM THRESHOLD WE NEED TO GET TO IN ORDER TO PULL THE TRIGGER, UM, IN THE BOND MARKET, THE BOND MARKET DOES NOT FLUCTUATE THAT GREAT FROM DAY TO DAY, BUT IF THE COUNCIL SETS A MINIMUM, THEN WE KNOW WHEN WE CAN, WE CAN HIT IT.
THE OTHER THING IS, AS MR MOROLLA SAID, UM, WE ARE WORKING WITH BANK OF AMERICA AND THEY'RE WATCHING THE MARKET CLOSELY.
AND, UM, WE WOULD RECOMMEND WHEN TO DO THAT.
NOW, IF WE'RE, IF WE DO COME BACK TO THE COUNCIL AND RECOMMEND THAT WE DO THIS IN SOME PHASES, WE DON'T HAVE TO ISSUE ALL THE DEBT AT THE SAME TIME.
THERE WILL BE OTHER TIMES WHERE THE ACCOUNT, WE COME BACK TO THE COUNCIL, UM, FOR ADDITIONAL DIRECTION.
BUT, BUT JULIO, WILL YOU, WILL YOU ALSO INDICATE OR VERIFY IF THE COUNCIL GIVES DIRECTION TO ISSUE
AND WE SAID, WE'D COME BACK ON THIS DATE TO GET FINAL APPROVAL.
THE OFFICIAL STATEMENT, THAT'S THE MOST CRITICAL THING THE CITY COUNCIL HAS TO SAY, WE'VE REVIEWED THIS OR STAFF HAS REVIEWED IT.
AND THE FACTS INSIDE THIS OPERATING STATEMENT ARE CORRECT.
AND THEN THEY WILL GIVE YOU GUIDANCE ON ISSUING BONDS.
TYPICALLY WHAT, AND WE'VE BEEN DOING THIS A GREAT DEAL.
COUNSEL GIVES GENERAL DIRECTIONS AS YOU STATED, A MINIMUM, A MAXIMUM AND OBJECTIVE, AND THEN THEY LET THE DETAILS BECAUSE THE MARKET MOVES SECOND TO SECOND, I CAN TELL YOU IT'S TODAY.
UM, YOU KNOW, WE HAD OUR FINAL PRICING AND THEN RATES WERE SO ATTRACTIVE THAT WE USUALLY GET A FEW MORE BONDS, BUT WE STAYED WITHIN THE GUIDELINES SET IN THE, IN THE STAFF REPORT, STAFF REPORT SAID $90 MILLION FOR OUR ACADIA.
IT ENDED UP BEING 85 BECAUSE THE INTEREST RATES WERE SO LOW.
SO WE BUMPED UP IN HIM, REDUCED A LITTLE BIT MORE OF A LIABILITY AND MADE IT 90 MILLION.
SO I THINK WHAT WE'RE HOPING IS THAT IS GOING TO GIVE YOU GENERAL DIRECTION OR GUIDELINES AS TO HOW YOU PROCEED, BUT THE SPECIFIC IMPLEMENTATION TIMING, EXACT AMOUNTS, HOW MANY TIMES YOU GO TYPICALLY IS LEFT UP TO A STAFF LEVEL DECISION.
I WILL BE LOOKING TO STAFF TO SAY, SO HERE ARE THE GUIDELINES THAT WE RECOMMEND A MINIMUM INTEREST RATE, A MAXIMUM INTEREST RATE, A FIRST TRAUNCH AMOUNTS OF MONEY, UH, UH, W WE CAN'T VOTE BLIND AND JUST SAY, WELL, DO WHAT YOU THINK IS BEST BECAUSE IN THE END, THE COUNCIL IS ACCOUNTABLE TO THE PEOPLE FOR VOTING FOR THE DEAL.
SO I GUESS I'M EXPECTING ON NOVEMBER 10TH, THAT WE'RE GOING TO HAVE SOME KIND OF DETAILED WHAT WE'RE VOTING ON IN GENERAL RATE MOUNTS.
CERTAINLY I, I'VE NEVER, I'VE NEVER GONE THROUGH A PENSION OBLIGATION PROCESS, BUT I HAVE GONE THROUGH OTHER DEBT.
AND THAT WAS SOME THAT WAS SIMILAR TO WHAT WE DID IN WITH THE OTHER TYPES OF DEBT AND, AND JULIO, I'M ASSUMING THAT'S PROBABLY SIMILAR TO WHAT YOU'VE DONE.
IT'S MORE DETAILED AND NUANCED IN PLAY.
THERE'S BEEN A LOT OF STUDY THE STAFF.
WE WILL COME UP WITH SPECIFIC RECOMMENDATIONS AND GUIDELINES.
THAT GOES WITHOUT WE ACTUALLY SET LIMITS AS TO WHAT TO NOT DO MORE AND GIVE YOU GUIDELINES AS TO OUR THINKING.
SO WE WILL HAVE IT AT THIS POINT.
WE WANT TO GIVE YOU, YOU KNOW, TRY TO MAKE THE SHORT HERE'S WHAT'S COMING UP.
SO YOU WILL HAVE MORE THAN ENOUGH DETAIL ON NOVEMBER 10TH.
DO WE HAVE ANY KIND OF SIMILAR TO HOW WE DO SEWER RATES, WHERE WE HAVE ANY KIND OF FREEDOM PATIENT TO SHOW? HERE'S THE AMOUNT THAT YOU EXPECT TO SAVE OVER NET ON PUTTING UP HERE? UH, WE'LL COME BACK TO YOU THAT PRICE THE BONDS.
SO, UM, RIGHT NOW I'M ACTUALLY WORKING ON ONE FOR KATIE.
I CAN'T TELL YOU EXACTLY WHAT YOU'LL SAY.
WE'LL GIVE YOU A GENERAL INTEREST WITH, TO GIVE YOU, AND WE'LL HAVE TO DO SOMETHING THAT IS A GOOD FAITH ESTIMATE, AND WE'LL PROVIDE SOMETHING.
BUT OF COURSE, AFTERWARD, ONCE YOU ACTUALLY SELL THE BONDS AND YOU MOVE IT, WE'LL COME BACK TO COUNCIL.
WE'LL GIVE YOU A DESCRIPTION OF HOW MUCH YOU WILL SAVE AND HOW THE SALE WENT AND WHAT NEXT STEPS MIGHT HAPPEN.
I THINK COMPETITORS WOULD LIKE TO KNOW THAT THEY'D LIKE TO SAY, SO YOU'RE DOING ALL THIS STUFF WITH OUR MONEY.
ARE WE SAVING ANY MONEY? IS IT WORTH OUR TIME? AND I THINK IT WILL BE IMPORTANT FOR THE COUNCIL TO KNOW THAT INFORMATION.
AT SOME POINT, I THINK IT'S PART OF, PART OF THE PENSION OBLIGATION OR THE PENSION FUNDING POLICY SAYS WE HAVE TO SHOW A D THERE HAS TO BE A DEMONSTRATED CASH FLOW SAVINGS, RIGHT? SO IN OUR ANALYSIS, WE WILL SHOW IF IT MAKES SENSE, WHAT THAT DEMONSTRATED AMOUNT WOULD BE.
[00:55:01]
QUESTION.UH, IF, UH, YOU KNOW, EVERY FEW YEARS WE HAVE A RECESSION, DEPENDING ON WHO WINS THE ELECTION, UH, WE COULD HAVE A BOOM OR A RECESSION, EITHER ONE, UH, AND THAT MIGHT AFFECT THE INTEREST RATE SUBSTANTIALLY.
YOU WANT TO KEEP YOUR HAND ON THAT FOR THE, IN THE FUTURE, IF I MADE THAT RIGHT.
GRANT GRAHAM, ISN'T THAT RIGHT? THAT WHEN WE HAVE A RECESSION, WE HAVE RATES GO DOWN.
UM, WELL, I'LL LET, I'LL LET THE EXPERT ADDRESS THAT.
CAUSE IT'S, IT'S THERE'S, UH, WELL, I'LL LET, I'LL LET JULIO ADDRESS THAT THERE ARE TWO THINGS.
INTEREST RATES CANNOT GO DOWN VERY MUCH, AS FAR AS BORROWING NOW THE, WHERE THE MARKET IS, THAT'S A DIFFERENT THING.
AND SOMETIMES THEY'RE CORRELATED AND SOMETIMES THEY'RE NOT, IT'S VERY DIFFICULT, BUT I DO BELIEVE ONE OF THE THINGS THAT STAT PRUDENTLY LOOKED AT IS THEY WANTED ONE THING IS ISSUING THE BONDS AND YOU'LL GET A SET RATE, BUT WHAT'S A LITTLE BIT MORE COMPLEX IS WHEN YOU, WHEN YOU ISSUE PENSION OBLIGATION BONDS, THERE'S SOME RISK OF GIVING THE MONEY TO CALPERS AND THE MARKET DOES NOT PERFORM WELL THAT NEXT FISCAL YEAR.
SO WHAT THE STAFF DECIDED, AND I THINK PRUDENTLY IS THEY WANTED TO WAIT ALSO AFTER THE END OF THE ELECTION TO SEE WHAT THE INVESTMENT WOULD BE.
I THINK ONE SIDE IS YOU CAN SAY, AND I HAVE ANOTHER CLIENT WHO WANTED THE ISSUE BECAUSE THEY WERE WALKING SOMEBODY, THE BORROWING, RIGHT? UM, I THINK THIS COUNCIL, I MEAN, THE STAFF REALLY LOOKED AT IT AND SAID, WELL, WE WANT TO SEE WHAT THE MARKET SENTIMENT WILL BE AFTER THE ELECTION.
SO HOPEFULLY YOU WILL HAVE INFORMATION AS WHAT THAT GENERAL DIRECTION IS.
NO ONE KNOWS EXACTLY HOW THE MARKET WILL PERFORM, BUT AT LEAST YOU'LL KNOW WHAT THE RESULTS OF THE ELECTION ARE IN A GENERAL SENSE OF WHAT THE MARKET SENTIMENT IS.
SO WE HOPE TO HAVE THAT INFORMATION IN OUR, UH, IN OUR REAR VIEW MIRROR SO WE CAN MAKE A DECISION GOING FORWARD.
ANY OTHER QUESTIONS, COUNSEL? I, UM, HAD A QUICK QUESTION.
I THINK MAYBE JULIO WILL BE DIRECTED TO THIS.
SO WITH REGARD TO THE EXAMPLE YOU GAVE TO THE OTHER CITY ARCADIA RECEIVING THE AAA RATING, WHAT KIND OF FACTORS CONTRIBUTE TO, TO A CITY GOING FROM AA TO TRICKLE IT? AAA, IS IT SIZE? IS IT FINANCIAL MANAGEMENT PLANS, BUT WHAT DOES THAT, WHAT ARE THE, UH, S AND P LEVEL FOR THOSE ARE EXCELLENT QUESTIONS.
AND I THINK IT'S A LONGTERM PROCESS.
I'VE ACTUALLY TAKEN, UH, A FEW CITIES, UH, THREE NOW THAT HAVE BECOME AAA RATED, UM, GLENDORA, PASADENA, AND ARCADIA.
IT IS A COMBINATION OF THREE FACTORS.
UM, SOME FINANCIAL MANAGEMENT PRACTICES, LEVEL OF RESERVES, AND, UH, OFTEN THERE'S THIS UNDERLYING ECONOMICS AS WELL, WHICH SOMETIMES YOU CAN'T IMPACT.
UM, SO CITIES LIKE SANTA MONICA AND BEVERLY HILLS, I DON'T HAVE TO SAY MUCH AS TO WHY THEY'RE THERE, BUT THERE ARE OTHER SMALLER CITIES.
AND IT IS THE LEVEL OF RESERVES.
THE FINANCIAL MANAGEMENT PRACTICES THAT YOU TAKE, THIS IS SEEN AS SOMEWHAT OF A POSITIVE FOR YOU WILL NOT INCREASE YOUR RATING, BUT AS A POSITIVE, HAVING THE PENSION FUNDING POLICIES STUDYING, DOING THE LEVEL OF ANALYSIS IS GOING TO SET YOU APART FROM A NUMBER OF OTHER CITIES.
THEY REALLY THINK ABOUT ISSUES WHERE YOU MAY HAVE SOME OF YOUR NEIGHBORS WHO MIGHT ISSUE PENSION OBLIGATION BONDS, BUT HAVING DONE THE IN-DEPTH ANALYSIS AND THOUGHT THROUGH THE WHOLE PROCESS, TO THE EXTENT THAT STAFF HAS DONE HERE, THAT WILL BE VIEWED AS A POSITIVE THE RATING AGENCIES.
REALISTICALLY, I ANTICIPATE YOU'LL BE IN THE AA CATEGORY, BUT IT IS A GREAT GOAL.
AND YOU HAVE A GOOD STAFF THAT CAN GET YOU TO THAT.
TRIPLE A YOU'RE ON YOUR WAY BY ADDRESSING THIS PENSION LIABILITY.
AND I MEAN, MOVING TO BIG PICTURE, WE'RE AT ABOUT $200 MILLION, UH, UNFUNDED LIABILITY.
I'M ASSUMING THAT THE GOAL IS IT, OR IS THE GOAL TO GET THAT DOWN TO ZERO AND THAT'S GOTTA BE A DECADES, A DECADES LONG PROCESS, OR ARE WE ALWAYS GONNA RUN A DEFICIT? I MEAN, CAN YOU SPEAK TO THAT A LITTLE BIT AND GIVE US A VISION FOR WHAT THIS LOOKS LIKE 10, 20, 30 YEARS DOWN THE ROAD? ABSOLUTELY.
I THINK THERE ARE TWO THINGS AND IT'S STATED IN THE POLICY, AND THIS WAS STATED, YOU HOPE TO GET TO YOUR GOAL.
YOUR GOAL IS A MINIMUM OF 90% FUNDED AND IT'S GOING TO MOVE EVERY YEAR.
THAT'S THE OTHER THING THAT CLAY STATED, THIS IS KIND OF LIKE I LIKE IN THE NORMAL COST TO YOUR CURRENT LIGHT BILL AND THE UAL IS THIS PAST DUE BILL.
YOU'RE TRYING TO GET CURRENT, BUT I'LL TELL YOU IT'S A LITTLE DYNAMIC.
SO EVERY YEAR THERE'S SOME KIND OF ADJUSTMENT.
CALPERS GIVES YOU AN ADJUSTMENT DUE TO INVESTMENT PERFORMANCE AND ALSO A LIFE EXPECTED IN YOUR LIFE.
AND WHY YOU HAVE THIS POLICY IS FOR YOU TO KEEP ON TOP OF IT EVERY YEAR TO UNDERSTAND I'LL GIVE YOU AN ANALOGY.
I HAD A CLIENT, VERY SMALL WATER CLIENT PAID OFF THEIR ENTIRE LIABILITY OF $5 MILLION.
AND THIS YEAR THEY HAD A HUNDRED THOUSAND DOLLARS ADDED
[01:00:01]
ON AND WE DID THE PROJECTION TO SAY THEY HAVE ANOTHER $350,000.SO THEY NOW, NOW IN THE NEXT FOLLOWING YEAR, THEY'RE GOING TO HAVE $400,000.
SO IN SHORT ORDER, IF EVEN PAY OFF THAT FULL AMOUNT, YOU MAY BE IN ANOTHER POSITION.
AND ALL OF A SUDDEN YOU'RE SURPRISED WHAT'S GOING TO HAPPEN WITH THIS PENSION FUNDING POLICY IS YOU WILL NO LONGER BE SURPRISED.
YOU'RE DOING EXACTLY WHAT YOU DOING OUT AND PROJECTING GOING FORWARD.
SO THE IDEA IS WE HAVE A PLAN.
WE'RE GOING TO TAKE THESE STEPS AND YOU'RE ALWAYS GOING TO LOOK FORWARD TO MAKE SURE THERE'S NO SURPRISES.
SO THAT'S WHY THE PENSION FUNDING POLICIES IN PLACE.
THAT'S WHY STAFF IS DOING WHAT THEY'RE DOING IN THE FUTURE.
YOU WON'T GET STUCK HERE AGAIN.
UM, SO LET'S SAY THE MARKET PRICES, THE BONDS AT THREE AND A HALF PERCENT AND, AND THE, THE PURPOSE IS AT 7%, THE ONLY WAY, NOT THE ONLY WAY.
IT SEEMS LIKE THE BIGGEST WAY.
THIS IS A BAD DEAL IS IF PERUSE DROPS ITS RATE BELOW, IN MY EXAMPLE, THREE AND A HALF PERCENT.
IN OTHER WORDS, WHY WOULD WE BORROW AT THREE AND A HALF PERCENT FROM THE MARKET? IF PURRS IS ONLY GOING TO CHARGE US 2%, THAT'S A PRETTY POLLYANNIC WORLD TO SAY THAT IT'S GOING TO CHARGE LESS THAN THREE AND A HALF PERCENT.
THAT WOULD MEAN THAT THE, THE RETURN ON INVESTMENTS ARE REALLY STRONG.
I THINK THE ODDS OF THAT HAPPENING ARE HIGHLY UNLIKELY.
I THINK THEY WOULD HAVE A PRETTY SIGNIFICANT TEETH PULLING, UH, EPISODE WITH VIRTUALLY EVERY CITY IN THE STATE OF CALIFORNIA TO MUCH BELOW WHERE THEY CURRENTLY ARE ANY TIME SOON.
SO WHETHER IT'S THREE AND A HALF, 3.4 OR 3.6, 3.2, THAT'S THE FINE TUNING, BUT THIS IS LOOKING LIKE IT'S A REALLY GOOD DEAL.
I WILL COME BACK ON NOVEMBER 10TH WITH THE RISK ANALYSIS.
UH, I'VE ACTUALLY RECENTLY DEVELOPED, UH, A MONTE CARLO SIMULATION THAT WILL COME BACK AND GIVE YOU A SENSE OF THE POTENTIAL OUTCOMES AND PROVIDE THAT TO THE CITY.
WE WILL NEVER KNOW WHAT THE OUTCOME OF INVESTMENT RETURNS IN THE FUTURE IS.
IF I WERE A GENTLEMAN, I WOULDN'T BE HERE, I'D BE IN AN ISLAND PUSHING A BUTTON, BUT WE CAN DO AS MUCH ANALYSIS AND FORETHOUGHT AND IMPLEMENT POLICIES AND COME BACK AND REVIEW AND DO THE MOST PROFESSIONAL THING YOU CAN, THAT STAFF IS DOING AND TAKING EVERY PRECAUTION WE CAN AND ANALYSIS AND QUANTITATIVE REVIEW, THAT'S THE BEST WE CAN DO WITH SOMETHING LIKE THIS.
AND THERE'S AN ENTIRE INDUSTRY DEDICATED TO DOING THIS.
SO, UM, I THINK WE'RE KIND OF TAKING THE RIGHT STEPS.
IT DOES LOOK LIKE A GOOD DEAL, BUT WE CAN NEVER GUARANTEE THE ULTIMATE OUTCOME.
I THINK THE QUESTIONS YOU'RE HEARING FROM THE COUNCIL IS PARTLY TO, UM, LET THE PUBLIC KNOW THAT WE'RE INTERESTED, ENGAGED AND AWARE OF THAT.
THEY'RE NOT SURE IF BLINDLY TAKING STAFF'S RECOMMENDATION AND THAT'S GOOD FOR THE PUBLIC.
UH, STAFF, IT SOUNDS LIKE, UH, YOU'VE DONE AN EXTRA EFFORT, UH, TO, UH, MAKE SURE WE'RE DOING OUR DUE DILIGENCE.
MR. MORALES, THANK YOU FOR EVERYTHING THAT YOU'RE DOING AS WELL.
UM, ANGELA, DO WE HAVE ANY COMMENTS FOR THIS ITEM? SO WE RECEIVED NO CARDS.
UM, IF THERE'S ANY, IF THERE'S NOT ANY OTHER FURTHER DISCUSSION FROM S UH, COUNSEL, UH, I BELIEVE THIS REQUIRES A MOTION AND A VOTE, UM, MORGAN, DO WE HAVE TO, OR, UH, GRAHAM, DO WE HAVE TO HAVE INDIVIDUAL MOTION? UH, FOR ALL, FOR ALL THESE ITEMS USED TO BE ONLY THE ONLY ITEM THAT'S, UM, BEING CONSIDERED FROM A, FROM A VOTE PERSPECTIVE IS THE ADOPTION OF THE RESOLUTION APPROVING THE OP THE HEDGE FUND FUNDING POLICY, RIGHT.
THE REST OF THAT WILL COME BACK TO YOU, PRESUMABLY.
DO WE HAVE A MOTION? SO TO MAKE A MOTION THAT SECOND.
UM, DEPUTY MAYOR OR TEASER VOTE PLEASE? YES.
MOTION CARRIES BY UNANIMOUS VOTE OF THOSE PRESENT.
[7. Cooperative Agreement - Citywide Enterprise Resource Planning (ERP) Software RECOMMENDATION: That the City Council adopts the next Resolution, in order, to enter into an agreement for an Enterprise Resource Planning software program with Tyler Technologies, Inc., in the amount of $1,867,266 for service through June 30, 2026, with the option to renew for five additional five-year terms.]
ADMINISTRATIVE REPORT ITEM SEVEN IS ENTERED INTO A COOPERATIVE AGREEMENT WITH TYLER TECHNOLOGIES STAFF.IF YOU WANT TO INTRODUCE THE ITEM, PLEASE.
I JUST HAD TO UNMUTE THERE, UH, DEPUTY MAYOR AND A DISTINGUISHED COUNCIL.
AND WE'RE HERE TO TALK ABOUT, UH, THE PURCHASE OF CITYWIDE ERP SOFTWARE.
SO THE FIRST THING THAT WE HAVE
[01:05:01]
TO REALLY TALK ABOUT IN SUCH A THING IS WHAT IN THE WORLD IS CITYWIDE ERP SOFTWARE.SO IF YOU THINK ABOUT THE CITY AS A BUSINESS, UM, ERP SOFTWARE IS THE BACKBONE OF EVERYTHING.
UH, WE, IT IS KEEPING TRACK OF FINANCES, UH, ACCOUNTS PAYABLE, ACCOUNTS RECEIVABLE.
UM, IT'S MAKING SURE THAT BILLS GO OUT AND IT ALSO MAKES SURE THAT, UH, PAYROLL CHECKS GO OUT.
UM, WHAT'S CRITICAL FOR A GOOD ERP SOFTWARE IS THAT IT IS INTEGRATING WITH MULTIPLE APPLICATIONS AND EVERYTHING IS TALKING TO IT SO THAT IT HAS THE MOST INFORMATION, UH, TO MAKE THE BEST ANALYSIS AND PRODUCE THE OUTPUTS THAT WE NEED AS A SOLID CITY.
UM, IN OUR CASE TODAY, WE'RE TALKING ABOUT FINANCE, UH, HUMAN RESOURCES, PAYROLL, UTILITY, BILLING, CITIZENS, SELF SERVICE, AND EMPLOYEES, SELF SERVICE, PRIMARILY, UH, BUT CONNECTING INTO EVERYTHING FROM A PAYROLL APPLICATION, UH, PERMITTING, UM, AND SO FORTH.
SO WHY DOES ALCOHOL NEED ERP SOFTWARE? THE, THE REAL GIST OF IT IS IF WE DON'T HAVE THIS CENTRAL SOFTWARE TALKING TO ALL OF OUR SYSTEMS, WE SPEND ALL OF OUR STAFF TIME MOVING DATA BETWEEN SYSTEMS, UM, AND THAT'S TIME THAT WE SHOULD BE SPENDING ANALYZING, OPTIMIZING AND INNOVATING.
SO WHAT WE'RE DOING WITH THIS SOFTWARE IS MAKING SURE THAT WE HAVE THE DATA TO MAKE SMART DECISIONS, UM, MAKING SURE THAT WE'RE, UH, OPERATING AT GREAT EFFICIENCY, UM, THAT THINGS ARE GOING THROUGH THE PROPER APPROVALS OR CHECKS AND BALANCES, AND REALLY MAKING SURE THAT WE ARE DOING THE RIGHT THING.
UM, WE'RE MEETING ALL OF OUR REGULATORY REQUIREMENTS AND SO FORTH.
SO HERE'S OUR CURRENT SITUATION.
WE'VE ACTUALLY HAD AN ERP SYSTEM FOR ABOUT 20 YEARS.
UM, IT IS THE OLDEST SERVER IN OUR DATA CENTER RIGHT NOW.
THE SERVERS ARE ABOUT 10 YEARS OLD.
UM, OUR CURRENT SYSTEM, UH, THE PRODUCT OWNERSHIP HAS CHANGED SEVERAL TIMES.
UM, AND WE'RE SEEING IN MOST RECENTLY THAT THEY'RE LOSING A LOT OF KNOWLEDGEABLE PROGRAMMING AND SUPPORT STAFF.
WE ATTEMPTED TO UPGRADE THE SYSTEM.
UH, MOST RECENTLY BACK IN 2017, WE HAVE NOT BEEN ABLE TO GET IT UP TO MODERN ERP STANDARDS, WHICH MEANS THAT IT'S ACTING ALMOST AS A STANDALONE FINANCE SYSTEM.
AND WE'RE LOSING THOSE EFFICIENCIES THAT YOU EXPECT IN A MODERN ERP SYSTEM.
WE'VE GOT MULTIPLE CITIES THAT ARE CURRENTLY MOVING AWAY FROM THE PRODUCT FOR SOME TIME REASONS.
SO TOM TIME IS OF THE ESSENCE.
UH, WE'VE GOT OLD SERVERS, WE'VE GOT AN OLD SYSTEM AND YOU DON'T JUST MOVE INTO A NEW FINANCE SYSTEM OVERNIGHT.
UH, WE NEED TO MAKE SURE THAT THE DATA IN THERE IS CORRECT, AND IT, UH, WE'LL PRINT OUT, UH, THE PROPER THINGS THAT INTERFACES WITH ALL THE SYSTEMS. SO WHAT WE DID WAS WE LOOKED AT, UH, PURCHASING OPTIONS.
AND WHAT WE FOUND WAS THAT, UH, THERE ARE COMPETITIVE PROCUREMENTS THAT ARE OUT THERE AND IN SOUTHERN CALIFORNIA, IN CALIFORNIA AS A WHOLE, UH, TYLER MUNIS HAS, IS THE SYSTEM THAT HAS MOST FREQUENTLY ONE FOR AGENCIES OF OUR GENERAL SIZE.
UM, WE REACHED OUT TO OTHER SITES, THE CITIES USING TYLER MUNIS, AND WE ALSO DID EIGHT HOURS OF VENDOR DEMONSTRATIONS TO MAKE SURE THAT IT MET THE NEEDS FOR THOSE DEPARTMENTS THAT ARE GOING TO BE USING THIS, UH, WHICH ACTUALLY IS ALMOST EVERY SINGLE DEPARTMENT TOUCHES AND USES THE SYSTEM Y TYLER.
UM, THE BIGGEST THING FOR AN ERP SYSTEM IS THAT INTEGRATION WITH OTHER THINGS.
AND WE'RE ALREADY USING TYLER TECHNOLOGY SOFTWARE, UH, IN MULTIPLE DEPARTMENTS.
OUR POLICE DEPARTMENT USES IT FOR DISPATCHING, UH, PUBLIC WORKS AND, UH, COMMUNITY DEVELOPMENT USE IT FOR PLANS AND PERMITS.
OUR CITIZENS SELF-SERVICE IS ALREADY UP AND RUNNING AND WOULD INTEGRATE WITH IT.
AND OUR CITY APP IS A TYLER, UH, PRODUCT THAT WE AWARDED THROUGH AN RFP PROCESS.
SO THAT CRITICAL, SEAMLESS INTEGRATION IS THERE.
WE'LL ALSO AS A EXISTING TYLER, UH, CUSTOMER, WE WERE ABLE TO NEGOTIATE A DEEPER DISCOUNT BECAUSE WE HAVE MULTIPLE PRODUCTS.
AND ALSO BECAUSE THEY HAVE WORKED WITH US ON PREVIOUS PROJECTS, THEY KNOW HOW WE RUN OUR PROJECTS, AND WE WERE ABLE TO LOWER DOWN THE COSTS OF A LOT OF THE PROJECT MANAGEMENT AND CONFIGURATION BY, UH, DOING THAT OURSELVES.
[01:10:01]
AND WE HAVE A PROVEN TRACK RECORD THAT WE CAN DO THAT WE CAN DO IT QUICKLY.AND THAT'S GOING TO SAVE, UH, THE CITY HUNDREDS OF THOUSANDS OF DOLLARS FOR THE NEXT COUPLE OF YEARS, UH, JUST TO REAFFIRM, UH, TYLER MUNIS AND THEIR ERP SOFTWARE.
THEY ARE USED IN 128 OTHER GOVERNMENT AGENCIES IN CALIFORNIA.
GOVERNMENT IS THE BREAD AND BUTTER FOR TYLER.
UM, THEY ARE THE LARGEST COMPANY THAT'S REALLY FOCUSING ON PUBLIC SECTOR SOFTWARE AND THEY OFFER PRODUCTS IN EVERY, UH, PORTION OF PUBLIC SECTOR FROM PUBLIC SAFETY TO FINANCE.
UM, AND THEY ARE WINNING COMPETITIVE PROCUREMENT CONTRACTS OF CITY OF CORNADO IS A GREAT EXAMPLE THERE, UH, GOING THROUGH, UH, TYLER MUNIS, UH, UH, IMPLEMENTATION RIGHT NOW AFTER AN RFP REDLANDS AS WELL.
THAT CONCLUDES MY PRESENTATION.
I AM AVAILABLE FOR ANY QUESTIONS.
COUNSEL, DO WE HAVE ANY QUESTIONS ON THIS PRESENTATION? UH, OKAY.
ANGELA, DID WE RECEIVE ANY COMMENTS FOR THIS ITEM, SIR? WE RECEIVED NO CARDS FOR THIS ITEM.
UM, IF THERE'S NO DISCUSSION, UH, DO WE HAVE A MOTION? I'LL MOVE.
STEVE, DEPUTY MAYOR OR A TEASER VOTE, PLEASE.
MOTION CARRIES BY UNANIMOUS VOTE OF THOSE PRESENT.
[8. COVID-19 Status Report RECOMMENDATION: No action required.]
ADMINISTRATIVE REPORT ITEM EIGHT IS A COVID-19 STATUS REPORT, UH, CITY MANAGER, GRAHAM MITCHELL.UH, WANT TO TAKE IT AWAY WITH THIS ONE? THANK YOU, MR. ORTIZ, UH, AND MEMBERS OF THE COUNCIL WHEN YOU GET THIS GOING.
SO AT THE LAST COUNCIL MEETING, UH, THE COUNCIL ASKED FOR SORT OF A STATUS REPORT AT EVERY MEETING.
AND, UM, I THOUGHT IT COULD BE AN OPPORTUNITY TO JUST SHARE SOME DATA OF WHAT'S HAPPENING IN THE CITY AND IN THE COUNTY.
AND, UM, KIND OF TALK ABOUT SOME THINGS THAT ARE HAPPENING FROM AN OPERATIONAL PERSPECTIVE AND SOME OF THE IMPACTS OF THE HEALTH ORDERS.
THIS FIRST ONE WILL PROBABLY BE A LITTLE BIT LONGER THAN WHAT I'M ANTICIPATING IN THE FUTURE.
PARTLY BECAUSE I'M GIVING A LITTLE BIT OF BACKGROUND INFORMATION.
SO THE REST WILL BE JUST MORE OF AN UPDATE.
HOWEVER, AT THE CONCLUSION OF THE REPORT, I AM SEEKING FOR SOME FEEDBACK FROM THE COUNCIL OF THINGS THAT THEY WOULD LIKE TO SEE IN A, IN A FUTURE PRESENTATION.
SO, UM, SO AS I'M GOING THROUGH THIS, IF THERE'S THINGS THAT ARE MISSING FROM THE REPORT, PLEASE LET ME KNOW.
WE'LL MAKE SURE THAT THOSE ARE INCLUDED AS WELL.
UM, HAVE YOU THOUGHT ABOUT HAVING TO BE SOME GUESTS, GUESTS IN, FROM THE COUNTY FEATURE DATES TO TALK ABOUT SOME SPECIFIC QUESTIONS THAT YOU MAY HAVE? SO WITH THAT KIND OF, I WANT TO TALK ABOUT THE DATA, BOTH IN THE COUNTY AND ALSO IN THE CITY OF ALCOHOL WE'LL THEN TALK ABOUT SOME OF THE HEALTH ORDERS THAT ARE IN PLACE AND THOSE, THE IMPACTS THAT THEY'RE HAVING ON THE CITY AND THEN THE CITY'S RESPONSE.
AND, UM, AGAIN, I'LL HIGHLIGHT KIND OF ONE OR TWO OPERATIONAL ISSUES THAT ARE OCCURRING AS A RESULT OF COVID-19.
SO, UM, THIS IS, UH, THIS IS A TABLE IT'S, IT'S GOT A LOT OF DATA IN IT.
THIS IS PUT OUT BY THE COUNTY OF SAN DIEGO.
AND WHAT IT DOES IS IT SHOWS, UM, OVER THIS PERIOD OF TIME, IT'S ABOUT A MONTH'S PERIOD OF TIME.
IT SHOWS THE NUMBER OF REPORTED TESTS AND THAT'S THE BAR IN GREEN.
SO HOW MANY PEOPLE WERE TESTED ON ANY GIVEN DATE, AND THEN IN THAT LITTLE YELLOW BAR BELOW, IT SHOWS HOW MANY NEW CASES EMERGED AS A RESULT OF THOSE TESTS.
AND THEN THERE'S THIS, UM, ABOVE THIS ROLLING PERCENTAGE OF CASES OR THE PERCENTAGE OF PEOPLE THAT ARE TESTING POSITIVE.
SO YOU CAN KIND OF SEE, UH, IN A MONTH'S PERIOD OF TIME, HOW THIS TRACKS OVER, AND I'M GOING TO SHOW YOU A GRAPH THAT I ACTUALLY HAVE DEVELOPED THAT MAYBE SHOW THIS A LITTLE BIT MORE CLEARLY, BUT THIS, THIS HAS A LOT OF DIFFERENT DATA IN ONE SLIDE.
UM, THIS IS ANOTHER SLIDE PUT UP BY THE COUNTY, AND THIS SHOWS HOW MANY SINCE, SINCE THE REALLY BEGINNING OF COVID-19, UM, AT LEAST IN THIS COUNTY, UM, THE HOSPITALS NUMBER OF PEOPLE HOSPITALIZED, UM, NEW HOSPITALIZATION ADMITTANCE PER DATE.
SO YOU CAN SEE THE NUMBER OF NEW PEOPLE THAT HAVE BEEN ADMITTED TO THE HOSPITAL HAS DRAMATICALLY DECLINED SINCE THE REALLY BIG SPIKE THAT WE HAD IN MID JULY, AS I CALL THE 4TH OF JULY BUMP THAT WE HAD THOUGHT TO THE 4TH OF JULY, WE HAD THIS MASSIVE INCREASE IN CASES, BUT EVER SINCE THEN, WE'VE ACTUALLY HAD A SIGNIFICANT
[01:15:01]
DROP IN PEOPLE BEING HOSPITALIZED.AND YOU'LL SEE HOW THAT, HOW THAT PLAYS OUT IN THE SECOND TWO.
THIS SHOWS THE NUMBER OF DEATHS PER DAY, THAT WE'VE HAD SINCE THE BEGINNING OF COVID.
AGAIN, YOU SEE THE LARGE SPIKE.
UM, CAN YOU GUYS SEE MY CURSOR AS I DO THAT? YES.
UM, YOU CAN SEE THAT LARGE SPIKE HERE.
AND THEN AGAIN, THERE'S A BIT OF A DECLINE OVER TIME.
SO THIS IS ACTUALLY A TABLE THAT I PUT TOGETHER.
I ACTUALLY GET A S UM, WELL, THE COUNTY PUBLISHES A SITUATIONAL REPORT EVERY SINGLE DAY.
AND I TAKE SOME DATA FROM THAT I PUT INTO A PRETTY LARGE SPREADSHEET, RIGHT.
I'VE SORT OF ASKED, I'VE CREATED WHAT I THINK IS IN AN ESTIMATED NUMBER OF ACTIVE CASES THAT ARE IN THE COUNTY.
AND SO IT TAKES OUT, UM, SO IT PRESUMES THAT IF I HAD COVID, UH, A MONTH AGO, UM, AND IF I'M STILL LIVING, THEN I SHOULD NO LONGER HAVE COVID.
SO IT ACTUALLY TRACKS THE NUMBER OF COVID CASES PER DAY, AND PEOPLE SLOUGH OFF OVER A FOUR AFTER 14 DAYS.
AND SO, UM, BASED ON THAT, I'VE CREATED THIS ESTIMATED NUMBER OF ACTIVE CASES IN THE CITY, AND THIS IS ALSO IN OUR, THE COUNTY, AND THIS ALSO SHOWS DEATH DEATH.
SO YOU CAN SEE THIS AGAIN, THIS REALLY LARGE SPIKE THAT WE HAD IN MID-JULY INTERESTINGLY ABOUT 14 DAYS AFTER THE 4TH OF JULY, BUT EVER SINCE THEN, WE'VE HAD THIS REAL PLATEAUING SINCE, UH, ALMOST MID AUGUST WHERE WE ARE HOVERING AROUND THAT 4,000 MARK, AND WE'VE GONE UP ABOVE UP A BIT AND THEN WE'VE DROPPED BELOW IT, BUT WE'VE BEEN HOVERING AROUND THAT AREA FOR QUITE A WHILE.
AND SO THE FACT THAT I'LL GO BACK A SLIDE OR TWO, THE FACT THAT WE'RE HAVING THAT SAME LEVEL OF ABOUT 4,000, BUT WE'RE HAVING A DEEP, UH, PRETTY SIGNIFICANT DECLINE IN HOSPITALIZATION RATES IS PRETTY ACCURATE FROM WHAT THE DATA WE'RE HEARING.
IT'S MOSTLY A LOT OF THE NEW CASES ARE YOUNGER INDIVIDUALS THAT AREN'T AS SUSCEPTIBLE TO THE DISEASE AS, AS OLDER ADULTS, WHICH THOSE ARE, UM, THIS JUST TAKES THE LAST 30 DAYS OF THE EXACT SAME TABLE I SHOWED.
AND REALLY JUST SHOWS THAT WE'VE REALLY HIT THIS PLATEAU OF ABOUT 4,000.
UH, IT'S NOT REALLY MOVING UP OR DOWN IN ANY WAY, SHAPE OR FORM.
IT WILL BE INTERESTING TO SEE WHAT HAPPENS POST, UM, THANKSGIVING, UM, WHAT THAT DATA DOES, BUT, UM, FOR THE LAST, UM, MONTH, UH, DEATH, UH, RATES AND, UH, ACTIVE CASE RATES HAVE BEEN PRETTY CONSTANT, NOT A, NOT A HUGE INCREASE.
SO I'VE TAKEN THE SAME AMOUNT OF DATA AND I'VE APPLIED IT TO THE ALCOHOL KNOWN, UM, CITY OF ALCOHOL, AND THIS IS JUST CITY ITSELF.
AND AS YOU CAN SEE, UH, WE HAD THAT EXACT SAME SPIKE AROUND THE SAME TIME THAT THE REST OF THE COUNTY HAD, AND THEN WE'VE ALSO ACTUALLY PLATEAUED.
BUT AS YOU CAN SEE, WE ARE HAVING A, UH, A BIT OF A SPIKE IN THE LAST FOUR DAYS.
AND I'LL KIND OF TALK ABOUT WHY I THINK THAT'S HAPPENING RIGHT NOW.
UM, I'M GOING TO TAKE THAT SAME TABLE AND JUST SHOW THE LAST MONTH.
YOU CAN AGAIN, SEE THAT WE ARE HOVERING AROUND, UM, A LITTLE UNDER 100 OR AROUND 100.
AND WE REALLY INCREASED TO ALMOST, UH, 200 AT THIS POINT.
SO WE RECEIVE A CONFIDENTIAL REPORT AND I I'D LOVE TO SHARE WITH THE COUNCIL THAT I'VE COMMITTED NOT TO BY THE COUNTY, BUT WE RECEIVE, UM, A REPORT THAT SHOWS WHERE OUTBREAKS ARE OCCURRING IN THE CITY.
AND I CAN, I I'M ALLOWED TO SHARE THIS.
THE COUNTY HAS GIVEN ME AUTHORIZATION TO SHARE THIS, BUT IT'S HAPPENING AT ABOUT 10 LOCATIONS IN THE CITY.
THERE'S ABOUT 63 SPECIFIC CASES.
WE HAVE THREE LOCATIONS THAT ARE OCCURRING AT SKILLED NURSING FACILITIES.
AND, AND WE'VE HAD ABOUT THAT NUMBER OF OUTBREAKS FOR ALL THE LAST FEW MONTHS.
WE HAVE ONE OUT OF CONGRESS CONGREGATE GET CARE FACILITY.
THAT'S NOT A SKILLED NURSING FACILITY.
AND THEN WE HAVE SIX COMMUNITY OUTBREAKS AND THOSE RANGE FROM, UH, RESTAURANTS TO CHURCHES, TO SCHOOLS.
SO, UM, THAT'S KIND OF THE TYPICAL COMMUNITY OUTBREAK LOCATIONS.
AND, AND I DON'T THINK OF ALL THE COMMUNITY OUTBREAKS.
UM, WE HAVE ANY MORE THAN THREE OR FOUR, AS I RECALL, UH, THE SKILLED NURSING FACILITY, SOME OF THEM HAVE HIGHER RATES OR OUTBREAKS AND OTHERS, UM, BUT IT'S ALL OVER THE PLACE.
BUT IF YOU LOOK AT 63, THAT'S THAT'S, BY THE WAY WE, THIS IS THE MOST OUTBREAKS WE'VE HAD, UM, COMMUNITY OUTBREAKS WE'VE HAD SINCE I'VE STARTED RECEIVING THE DATA.
AND SO I THINK A LOT OF THE NUMBERS THAT WE'RE SEEING HERE ARE ACTUALLY ATTRIBUTED TO THE INCREASE OF, UM, OF ABOUT THREE OR FOUR LOCATIONS RIGHT NOW.
SO WE HOPE THAT AS THOSE GO DOWN, AS THOSE GET UNDER CONTROL, THAT OUR NUMBERS WILL GET BACK DOWN AGAIN.
BUT IF NOT, WE'LL BE BRINGING SOMETHING BACK TO THE
[01:20:01]
COUNCIL FOR SOME FURTHER DISCUSSION.UM, SO LET ME TALK A LITTLE BIT ABOUT, UM, HOW THE STATE'S OPERATING AND HOW WE'RE SORT OF WE'RE BEING JUDGED AND HOW THE HEALTH ORDERS WORK.
THE STATE, THE STATE HAS A, UH, A PLAN CALLED THE STATE SAFE REOPENING PLAN.
THEY HAVE SOME METRICS THAT THEY JUDGE OR ANALYZE EVERY COUNTY, AND, UM, IT'S BASED ON AN ADJUSTED CASE RATE.
SO REALLY IT'S THE NUMBER OF CASES THAT A COUNTY HAS PER HUNDRED THOUSAND IN POPULATION IT'S ADJUSTED BECAUSE, UM, IT'S OBVIOUS THAT THE MORE TESTING THAT A COUNTY DOES, THE MORE CASES THAT WILL OCCUR.
AND SO TO, UM, DISINCENTIVIZE COUNTIES FROM DISCOURAGING PEOPLE TO GET TESTED, BECAUSE THEN YOU'LL HAVE MORE RATES.
UM, THE CA COUNTIES THAT TEST ABOVE THIS BASIC BASELINE THAT THE STATE WOULD LIKE TO SEE, THEY ACTUALLY GET AN ADJUSTED RATE.
SO I'LL GIVE YOU AN EXAMPLE RIGHT NOW.
UM, OUR UNADJUSTED RATE IS 7.4, BUT BECAUSE WE TEST AT A HIGHER RATE THAN THE COUNTY EXPECTS, OUR ADJUSTED RATE DROPS TO 6.5.
UM, THEY ALSO LOOK AT POSITIVITY RATES.
SO THE NUMBER OF CASES PER, UH, TESTS THAT OCCUR, AND THEN THERE'S A NEW, A NEW, UH, JUDGMENT OR A NEW AREA THAT THEY'RE ANALYZING IS CALLED THE HEALTH EQUITY CORTEL.
AND THEY LOOK AT THE MORE VULNERABLE POPULATIONS IN A, IN A COUNTY.
THEY LOOK AT SOCIOECONOMIC AND THEY LOOK AT, UM, UM, PERSONS OF COLOR.
AND IF THERE'S A, UM, A RATE AND ADJUSTED RATE CASE OR A RATE CASE, OR A POSITIVITY RATE, THAT'S MUCH HIGHER WITH THAT GROUP THAN THE REST OF THE COUNTY THAT WILL HOLD THE REST OF THE COUNTY BACK.
SO A COUNTY CAN'T JUST FOCUS ON ONE GROUP OF, OF ITS POPULATION HAS TO HAVE A FOCUS ON ALL.
SO BASED ON, UH, THE DIFFERENT METRICS, UH, COUNTIES ARE CATEGORIZED INTO FOUR DIFFERENT COLORS PURPLE RED, ORANGE AND YELLOW KIND OF SHARE WHAT THAT MEANS.
SO IF YOU'RE PURPLE, YOU HAVE PRETTY WIDE SPREAD, UM, CASES.
THAT MEANS YOU'RE ABOVE 7% OR SEVEN.
YOU MEANS YOU HAVE MORE THAN SEVEN PER HUNDRED THOUSAND CASES, UH, ADJUSTED.
IT MEANS YOU HAVE A POSITIVITY RATE OF PLUS 8%.
SO, LIKE I SAID BEFORE, EVEN THOUGH OUR ADJUSTED R EVEN THOUGH OUR UNADJUSTED RATE IS 7.4, OUR ADJUSTED RATES AT 6.5.
SO THAT PUTS US WELL WITHIN THAT RATE IN OUR PA UH, POSITIVITY RATE IS 3.5.
SO AGAIN, WE'RE WELL WITHIN THAT.
SO WE, WE ARE WELL WITHIN, UM, THE RED, UM, AND, BUT IT'S STILL A LITTLE WAYS TO GO UNTIL WE GET TO THE ORANGE.
UM, THIS IS A MAP OF THE STATE OF CALIFORNIA.
THIS SHOWS COUNTY OF SAN DIEGO IN THAT BOTTOM LEFT CORNER.
WE ARE THE RED, AS YOU CAN SEE, WE'RE SURROUNDED BY COUNTIES THAT ARE PURPLE, UH, PURPLE IS MORE RESTRICTIVE IN FACT, UM, LOT MORE RESTRICTIONS THAT OCCUR.
AND SO YOU'LL HEAR COUNTY HEALTH OFFICIALS AND OUR SUPERVISORS TALK ABOUT NOT WANTING TO GET INTO PURPLE BECAUSE ONCE YOU GETTING INTO PURPLE, THERE'S SOME PRETTY DRACONIAN SHUTDOWNS, LIKE THE OTHER COUNTIES AROUND US ARE EXPERIENCING RIGHT NOW.
SO, UM, RIGHT NOW THAT THE COUNTY OR THE STATE HAS A HEALTH ORDER, AND THE COUNTY HAS REFLECTED THAT ORDER AS OF OCTOBER 10TH, THAT UP TO THREE HOUSEHOLDS ARE ALLOWED TO GATHER, UH, THEY'RE REQUIRED TO BE OUTDOORS AND THEY'RE GATHERING, THEY'RE REQUIRED TO MAINTAIN DISTANCE.
AND, UM, IF THEY'RE SERVING FOOD, THERE SHOULD BE A SINGLE INDIVIDUAL SERVING FOOD.
UM, THEY'VE ASKED THAT THAT THESE TYPES OF VISITS ARE KEPT SHORT, IDEALLY LESS THAN TWO HOURS.
AND THEN IF THERE IS SINGING OR CHANTING OR SHOUTING, IN OTHER WORDS, IF YOU'RE GETTING TOGETHER TO WATCH A FOOTBALL GAME, HOPEFULLY UNDER TWO HOURS, THAT YOU'D BE MAINTAINING SOCIAL DISTANCE OF SIX FEET, BE WEARING A FACE MASK.
IF YOU'D BE DOING THAT, IF PARTICIPATING IN THAT ACTIVITY, UM, IT HAS AN IMPACT DOESN'T SO RESTAURANTS, UH, CHURCHES OR PLACES OF WORSHIP THEATERS ARE TO OPERATE AT A 25% CAPACITY OR 100 DIGITALS.
WHICHEVER IS THE LESSER OF THOSE, UH, GYMS, UH, DANCE STUDIOS AND YOGA STUDIOS ARE TO OPERATE AT A 10% CAPACITY NON-ESSENTIAL BUSINESSES SHOULD CONTINUE TO BE SHUT DOWN OR REMOTE WORK, UH, DO WORK REMOTELY IF POSSIBLE.
THAT'S DEALING WITH MOSTLY OFFICE TYPE, UH, WORK.
UH, INDOOR MATTERS ARE ALLOWED TO BE OPEN RIGHT NOW AT 50% CAPACITY BARS WITHOUT FOOD OPERATE, UH,
[01:25:01]
SHOULD NOT BE OPERATING.IT SHOULD BE CLOSED IF THEY DO SERVE FOOD, THEY NEED TO BE AT THAT 25% CAPACITY AND THEN ENTERTAINMENT VENUES SUCH AS, UH, SEAWORLD OR THE MAGNOLIA CONTINUE TO REMAIN CLOSED.
UM, SO IT'S HAVING AN IMPACT ON OUR COMMUNITY.
WE, WE, UM, UM, POST PER THE HEALTH CODE, UH, FOR ANY HOLIDAY GET TOGETHERS, THERE SHOULD BE NO MORE UP TO THREE HOUSEHOLDS GATHERING AND THEY SHOULD MEET ALL THOSE REQUIREMENTS THAT THE COUNTY SAID.
UM, I LEFT THE TRICK OR TREATING A LITTLE VAGUE, BECAUSE I'LL BE HONEST WITH YOU AS I READ THE, THE HEALTH CODE.
IT'S, IT'S UNCLEAR WHETHER IT'S PROHIBITED OR WHETHER IT'S DISCOURAGED, NOT QUITE SURE THERE'S A LOT OF ENCOURAGEMENT OF ALTERNATIVE WAYS OF TRICK OR TREATING, BUT THE IDEA OF DOOR TO DOOR TRICK OR TREATING, UM, IS NOT BEING ENCOURAGED AT ALL BY THE STATE OF CALIFORNIA BY THE, BY THE COUNTY, UH, LA COUNTY IS FAR MORE RESTRICTIVE IN THEIR, UH, MODEL.
I HAVE A FEELING THAT THIS IS SORT OF BEEN MY TAKE.
I'VE BEEN IN SOME CALLS WITH THE COUNTY.
I THINK A LOT OF PEOPLE AS A FORMER TRICK OR TREATER, YOU GO, THERE'S A RISK REWARD, RIGHT? AND SO YOU'RE NOT GONNA WALK, UH, AND HIT 20 DOORS AND ONLY GET A RATE OF RETURN OF ONE DOOR.
SO I THINK THERE MAY BE A REALLY LOW TURNOUT THIS YEAR, JUST BECAUSE OF, UH, THE, THE RATE OF EFFORT THAT WOULD TAKE TO GET ONE SNICKER BAR.
UM, AND THEN OUR BUSINESSES CONTINUE TO OPERATE WITH LIMITS CAPACITY.
AND SO, UM, THERE IS AN IMPACT, ALTHOUGH, AS YOU SAW IN OUR LAST SALES TAX REPORT, UH, THINGS ARE THINGS AREN'T AS BAD AS WE KIND OF ANTICIPATED, BUT, BUT OUR BUSINESS, THIS IS DO STRUGGLE TO KEEP UP WITH, UM, ALL THE LIMITATIONS AND ALL THE DIFFERENT, UM, REQUIREMENTS THAT THEY'RE SUBJECTED TO.
SO HOW HAS THE CITY RESPONDED? WE HAVE ENACTED, UM, OUR CARES ACT.
WE'VE GOTTEN OUR MONEY OUT AS FAST AS WE POSSIBLY CAN.
WE'VE DISTRIBUTED $3.5 MILLION IN THE FORMS OF BUSINESS GRANTS, UM, THROUGH OUR, OUR UTILITY RENT AND NOW MORTGAGE ASSISTANCE PROGRAMS OR HOMELESS SHELTERS.
UM, AND WE'VE BEEN, UM, OUR, OUR STAFF HAS BEEN ADAMANT STAYING OPEN.
WE, UH, THERE ARE A LOT OF CITY HALLS THAT SHUT THEIR DOORS, PHYSICALLY SHUT THEIR DOORS TO THE PUBLIC.
WE HAVE LIMITED ACCESS TO THE DIFFERENT FLOORS WITHIN CITY HALL, BUT IF SOMEONE NEEDS TO COME TO CITY HALL TO RECEIVE SERVICE, THEY HAVE NOT BEEN DENIED THAT SERVICE DURING THIS.
UM, SINCE THE BEGINNING OF TIME, UM, AGAIN, IF THIS IS GOING TO BE AN ONGOING AGENDA ITEM, I THOUGHT I COULD JUST KIND OF TALK ABOUT MAYBE A NUANCE OR MAYBE ONE OF THE DIFFERENT OPERATIONS THAT'S OCCURRING.
AND I, I KIND OF WANTED TO FOCUS ON A LITTLE BIT ON CODE ENFORCEMENT AND SOME OF THE RESTRICTIONS THAT HAVE LIGHTENED UP ON OUR BUSINESS COMMUNITY.
SO I'LL KIND OF SPEND JUST A FEW MINUTES TALKING ABOUT THAT.
IT'S INTERESTING SINCE, UM, THE HEALTH ORDER IN MID-MARCH CAME OUT, WE'VE ACTUALLY HAD AN INCREASE IN THE NUMBER OF CALLS OR COMPLAINTS ABOUT CODE ENFORCEMENT VIOLATIONS, UM, ABOUT A 10% INCREASE IN THOSE VIOLATIONS.
AND ALMOST ALL OF THOSE, UH, COMPLAINTS ARE, ARE NOT FOCUSED ON COMMERCIAL TO ACTUALLY FOCUS ON RESIDENTIAL.
SO I THINK AS PEOPLE ARE AT HOME AND ARE IN THEIR OWN NEIGHBORHOODS, MORE OFTEN, THEY'RE NOTICING THINGS AS PEOPLE, UH, HAVE WALKED A LOT MORE THERE NOTICING THINGS.
AND AS THEY DO NOTICE, THEY CALL US OR THEY USE THE APP TO REPORT CODE CASES.
SO WE'VE BEEN ACTUALLY HAVING AN INCREASE IN THE NUMBER OF DEMAND FOR CODE ENFORCEMENT SERVICES.
UM, ALSO POINT OUT THAT, YOU KNOW, DURING THIS PERIOD OF TIME, WE HAVE COUNCIL'S DIRECTION.
WE'VE LIMITED OUR ENFORCEMENT ON A SIGN, THE SIGN ORDINANCE ON OUR BUSINESS COMMUNITY.
UH, WE'VE ALLOWED BUSINESSES TO OPERATE INTO THE PUBLIC RIGHT OF WAY ON THE SIDEWALKS WITH A TEMPORARY USE PERMIT AND ALSO INTO THEIR OWN PARKING LOTS WITH A TEMPORARY USE PERMIT.
AS YOU RECALL, THIS USE PERMIT IS A NO FEE PERMIT.
WE DO THINK IT'S IMPORTANT THAT, UH, THAT THERE IS SOME ORDER.
AND THE PURPOSE OF THAT TEMPORARY USE PERMIT IS TO ENSURE THAT PUBLIC SAFETY IS OCCURRING AND THAT THERE IS ADA ACCESS BEING GUARANTEED, AND THAT HEALTH CODES ARE BEING MET.
SO I'LL GIVE YOU A REALLY QUICK EXAMPLE.
WE HAD A RESTAURANT SHORTLY AFTER THE ORDER TO SHUT DOWN OCCURRED.
UH, THEY SET UP A TENT IN THEIR PARKING LOT, WHICH THEY COULD DO WITHOUT WHERE THEY TEMPORARY USE PERMIT.
AND IN DOING SO, WE REALIZED THAT THEIR TENT WAS LARGER THAN WAS REQUIRED, UM, WITHOUT A DIFFERENT TYPE OF A PERMIT.
AND THAT PERMIT IS DRIVEN BY THE STATE OF CALIFORNIA.
AND IT'S A BUILDING PERMIT, OR IT'S NOT A BUILDING PERMIT IF IT'S A FIRE MARSHAL INSPECTION.
SO WE ASKED FOR THAT, UM, WE WERE ABLE TO WORK WITH THEM AND GET THAT.
UH, WE ALSO NOTICED THAT THEY WERE BLOCKING ADA
[01:30:01]
ACCESS.SO WE'VE WORKED WITH THEM AND WERE ABLE TO RESOLVE THAT.
WE ALSO NOTICED THAT THEY PUT UP A, UM, A STORAGE POD RIGHT ALONG A PRETTY BUSY CORRIDOR.
UH, WE, WE LOOKED FOR SOME ALTERNATIVE LOCATIONS TO PUT THAT WE REALLY COULDN'T FIND A BETTER LOCATION OR WORK WITH THEM TO FIND A BETTER LOCATION.
SO IT HAS STAYED THERE, BUT THIS IS AN EXAMPLE OF US, UM, SORT OF TAKING, UM, A BUSINESS FRIENDLY APPROACH WHERE WE'RE CLEARLY THIS BUSINESS NEEDED, UH, TO MAKE SOME CHANGES.
AND RATHER THAN JUST AUTOMATICALLY ISSUING CITATIONS OR OUR STRICT WARNINGS, WE MADE CONTACT, WE WORKED WITH THEM, WE FIGURED OUT A PLAN.
UM, AND I THINK IT WORKED OUT ALL THE BEST.
WE ENSURE PUBLIC SAFETY, WE ENSURE WHEELCHAIR ACCESS, AND WE WERE ABLE TO LET ALLOW THIS BUSINESS TO, UM, DO THE BEST THEY CAN GIVEN THE CIRCUMSTANCES THAT THEY HAVE.
SO, UM, ANYWAY, SO KIND OF TO CONCLUDE, AS YOU RECALL, WE HAVE LOOSENED UP SOME OF THESE RESTRICTIONS ON OUR, OUR BUSINESS COMMUNITY FROM A LAND USE PERSPECTIVE AND SOME OTHER AREAS.
AND, UM, ASSUMING COVID, DOESN'T GO AWAY INSTANTANEOUSLY.
I HAVE A FEELING THAT, UM, THERE'S GOING TO STILL BE A SOMEWHAT OF A NEED WITH OUR INNER BUSINESS COMMUNITY FOR SOME OF THESE, UH, LESSER RESTRICTIONS GOING INTO 2021.
AND, UH, WE HAVE DIRECTION FROM THE COUNCIL TO INSTITUTE THESE, THESE SOFTER POLICIES THROUGH THE END OF THE YEAR.
UM, STAFF'S LOOKING FOR SOME FEEDBACK FROM THE COUNCIL OF WHETHER TO EXTEND THAT AT LEAST TO THE FIRST QUARTER OF 2021 AND JUST SEE WHAT HAPPENS.
AND SO I JUST WANT TO THROW THAT OUT THERE AND GET SOME DIRECTION FROM THE COUNCIL AND MAYBE THE COUNCIL CAN HELP US UNDERSTAND WHAT, WHERE YOU WOULD LIKE TO GO WITH THAT AS WE KIND OF GO TO THIS LAST SLIDE WHERE WE CAN ANSWER ANY QUESTIONS THAT YOU MAY HAVE, UM, RECEIVE ANY ADDITIONAL INFORMATION YOU'D LIKE IN FUTURE PRESENTATIONS.
AND THEN AGAIN, GET SOME FEEDBACK ON, UH, FUTURE, UH, REGULATION OF BUSINESSES GOING INTO 2021.
SO WITH THAT, UH, MR. MAYOR, DEPUTY MAYOR AT TIMES BACK TO YOUR THANKS, APPRECIATE IT.
UM, DO WE HAVE ANY FEEDBACK FOR STAFF ON WHICH WAY WE WANT THE REPORT TO GO OR ANY INFORMATION THAT WE WON'T INCLUDE IT IN THE FUTURE? YEAH, BOB, I, UM, I REMEMBER BILL COMING, UH, TO THE COUNCIL WITH THE REQUEST TO HAVE THE POLICE, NOT, UM, FORCE PEOPLE TO DO THINGS.
UM, AND IT WOULD TAKE UP THE LEAST TIME, WHICH IS TAKES AWAY FROM THE OTHER ACTIVITIES.
UH, IS THAT POLICY STILL IN EFFECT OR WHERE ARE WE WITH THAT? WELL, I THINK THE WAY I READ THE CONVERSATION AND THE DIRECTION FROM THE COUNCIL IS, IS, UM, SINCE I DIRECT THE POLICE CHIEF, UM, FROM THE CONVERSATION, I GOT THE IMPRESSION I GOT THE DIRECTION THAT COUNCIL WOULD LIKE US TO CONTINUE TO DO WHAT WE'VE BEEN DOING.
AND WE HAVE PRIORITIZED, UH, PROPERTY CRIMES AND VIOLENT CRIMES HIGHER THAN THAT, OF THE HEALTH CODE.
AND SO WE HAVE CONTINUED TO DO THAT.
WE GET COMPLAINTS ON A REGULAR BASIS ABOUT BUSINESSES NOT COMPLYING WITH THE HEALTH CODE.
WE DO CONTACT THEM, BUT WE HAVE NOT TAKEN A DRACONIAN APPROACH TOWARD THEM.
UH, IN MOST CASES, A LITTLE BIT OF EDUCATION GOES A LONG WAY, AND WE'VE BEEN A LITTLE ABLE TO GET THEM TO COMPLY WITH THE COUNTY HEALTH ORDERS.
BUT YEAH, WE, WE'RE NOT, WE'RE NOT USING ENFORCEMENT TOOLS THAT WE HAVE.
WE'VE NOT HAD TO USE ENFORCEMENT TOOLS TO GAIN COMPLIANCE WITH COUNTY HEALTH CODE TO THIS DATE.
BUT I THINK IT'S IMPORTANT TO RECOGNIZE IF THERE WAS A BUSINESS THAT WAS POSING A PUBLIC THREAT.
THEN I, AS THE CITY MANAGER, I HAVE AN OBLIGATION TO USE OUR POLICE POWERS TO DO THAT, TO ENFORCE THE CODE.
WELL, I THINK WE HAD TO EXTEND THAT POLICY, UH, AS IT WAS BROUGHT FORWARD.
AND SO WE AREN'T COMING DOWN ON ALL THE BUSINESSES, UH, TAKE A LIGHT APPROACH AND, UH, GET THEM TO CONFORM LIKE WITH THE OUTDOOR STORAGE AREA, THE RESTAURANT YOU MEANT.
UM, SO WHAT IF I MADE BORROWED ANYTHING? YEAH.
IF I MAY, BOB GRIM RECITED WHAT HAPPENED IN THE PAST, YOU KNOW, PRECISELY, WHICH WAS, THERE WAS A LOT OF DISCUSSION ABOUT WHETHER THE CITY COUNCIL SHOULD BE DIRECTING THE POLICE CHIEF OF STAFF TO DO MUCH OF ANYTHING, BUT YOU DIRECTED, YOU ONLY DIRECT THE CITY MANAGER AND THE CITY ATTORNEY.
I THINK THE COUNCIL WAS COMFORTABLE THAT, THAT THE CITY THROUGH THE CITY MANAGER'S DIRECTION HAS BEEN ACTING APPROPRIATELY.
AND YOU EXPECTED THAT IT WOULD CONTINUE TO BE
[01:35:01]
THAT WAY IN THE FUTURE.MY FEAR WOULD BE MOTION ME IF YOU WERE LOOKING FOR A MOTION TO GIVE ME THE MOTION FOR THAT, BOB, IT'S STILL OUT THERE.
GRAHAM IS STILL RUNNING THE CITY IN THE MANNER THAT HE KNOWS THAT YOU, YOU ALL RIGHT.
WELL, SO I DON'T THINK YOU NEED TO TAKE ANY ACTION ON THAT TODAY.
ANY OTHER COUNCIL MEMBERS THERE'S ITEMS THAT YOU WANT TO EXTEND THROUGH QUARTER ONE OF NEXT YEAR? WHAT ARE EXAMPLES OF THOSE ITEMS? I PROBABLY, I THINK PROBABLY A LIGHTENING OF THE SIGN ORDINANCE, ESPECIALLY AS THE ECONOMY COMES BACK, I THINK THERE'S GOING TO BE A LOT OF GRAND REOPENING TYPE OF SIGNAGE.
I THINK HAVING SOME, SOME SOFTENING THERE WOULD BE USEFUL.
I THINK THE ALLOWANCE OF THE NO FEE TEMPORARY USE PERMIT WOULD BE USEFUL.
I'LL BE HONEST, NOT A LOT OF BUSINESSES HAVE TAKEN ADVANTAGE OF THAT.
SO IT'S NOT LIKE THE CITY'S LOSING A LOT OF REVENUE, UM, OR, OR SPENDING A LOT OF STAFF TIME THAT WE'RE RECOUPING THOSE COSTS.
SO I THINK IT'S A GOOD GESTURE TO MAKE, AND I THINK IT ENCOURAGES, UH, BUSINESSES TO OPERATE, UM, EVEN UNDER THESE, THESE HEIGHTENED, UH, RESTRICTIONS.
SO THOSE ARE KIND OF THE TWO BIGGER, REALLY MORE LAND USE RELATED ISSUES.
WEREN'T THERE SOME OTHER THINGS EARLY ON THAT WE DECIDED TO EITHER DEFER OR WAIVE PENALTIES OR LATE FEES ON SUCH AS BUSINESS PERMIT FEES OR THOSE KINDS OF THINGS.
DO YOU RECALL THOSE? YEAH, THERE'S ACTUALLY TWO SPECIFIC ONES.
ONE WAS NO LATE FEES ON UTILITY.
UM, YOU ARE, UH, SEWER COSTS SINCE THAT'S GONE TO THE COUNTY TAX TROLL.
WE DON'T REALLY HAVE, WE'RE NOT MONTHLY BILLING OR BI-MONTHLY BILLING, SO THAT'S KIND OF GONE AWAY.
AND THEN WE ARE ALSO ALLOWING BUSINESSES TO, UM, NOT PAY ANY LATE FEES ON OBTAINING A BUSINESS LICENSE.
THEY STILL HAD TO GET A BUSINESS LICENSE, BUT IF, IF, IF THEY HAD GOT A LATE ONE, THEY WOULDN'T BE SUBJECTED TO THOSE LATE FEES.
I LIKE CONTINUING BOTH OF THOSE, UH, GESTURES THROUGH THE FIRST QUARTER.
UH, WE, WE DO ALREADY DON'T NEED TO GET LATE FEES WHEN PEOPLE ARE, IN SOME CASES, EVEN A WOMAN, IF THEY'RE GOING TO BE IN BUSINESS.
SO, UM, IN ANY GESTURES, A GOOD GESTURE, THANKS.
I WOULD ALSO HAVE THE, UM, THE OUTDOOR DINING PORTION TO EXTEND THAT AS WELL.
IF RESTAURANTS ARE ONLY AT 25% CAPACITY, THAT OUTDOOR DINING IS GOING TO BE ABLE TO GET THEIR CAPACITY UP.
UM, AND I FEEL LIKE AS LONG AS THE STATE'S STILL ISSUING THESE ORDERS, YOU KNOW, WE AS A CITY HAVE TO EXTEND THESE, UH, YOU KNOW, POLICIES TO HELP HELP OUR BUSINESSES.
SO, UM, REALLY, IT SEEMS LIKE AS, AS THE STATE GOES, WE NEED TO KEEP, UM, KEEP THAT UP.
UM, DOES ANYONE HAVE ANY, UH, FEEDBACK FOR STAFF ON ANYTHING ADDITIONAL TO ADD ON THIS WITH REGARD TO, UM, COVID INFORMATION? I KNOW ONE FOR ME IS, UH, I DON'T KNOW IF THEY EVEN GIVE HOSPITAL CAPACITY.
UM, YEAH, THAT MIGHT BE A DATA POINT ON THAT.
I CAN, I CAN USE THAT IN THE NEXT ONE, THAT MIGHT BE INTERESTING TO SEE WHERE OUR HOSPITALS ARE AT.
AND, UM, ALONG WITH THAT, WHAT IS THE NORMAL HOSPITAL HOSPITAL CAPACITY FOR THIS POINT IN TIME LAST YEAR? UM, SO WE COULD HAVE SOME KIND OF COMPARISON, OBVIOUSLY THE HOSPITALS AREN'T, UH, 0% CAPACITY, YOU KNOW, THAT THEY HAVE TO BE OPERATED AT SOME FORM OF, UH, BEDS THAT ARE, THAT ARE BEING USED.
SO, UH, YOU KNOW, BY COMPARISON, WHAT DOES THAT LOOK LIKE? SO WE, WE CAN SEE WHERE OUR, WHERE WE'RE AT.
I THINK THAT MIGHT BE A HELPFUL DATA POINT.
I TALKED TO ONE PERSON CONNECTED WITH THE GROSSMONT AND HE SAID THAT THEIR, UH, CAPACITY IS WAY DOWN.
AND, UH, UH, I MEAN, YOU KNOW, THE, THE NUMBER OF BEDS FILLED IS WAY DOWN AND, UH, IT'S ACTUALLY COSTING HIM, UH, TO OPERATE BECAUSE THEY DON'T HAVE ENOUGH, UM, BAKING, UM, UNPLANNED OR PLANNED, UM, OPERATIONS AND THINGS THAT THEY AREN'T ABLE TO USE.
IT UTILIZE THEIR HOSPITALS TO THE FULLEST.
WELL, THEY'RE HURTING BECAUSE, UH, UH, THE RESTRICTIONS AND WE ARE TO LOOK AT THE NUMBER OF BEDS IT'S IN THE PAPER EVERY DAY.
I WAS READING THE PAPER, UH, IT'S IN THE UNION TRIBUNE EVERY DAY.
[01:40:01]
ABSOLUTELY IT WAS HIGHER THAN THAT.A LOT HIGHER THAN THAT FOR AWHILE, YOU KNOW, YESTERDAY THERE WERE 208 BEDS FOR, UM, UH, HOP IN USE COUNTY-WIDE FOR COVID 60,000 OF THOSE WERE IN THE ICU.
AND WE HAVE JUST UNDER 7,000 TOTAL BEDS AVAILABLE IN SAN DIEGO COUNTY.
SO IT IS IT'S ABOUT 3% OR SOMETHING REALLY LOW AS BEING USED FOR COVID.
I HAVE ONE MORE ITEM THAT MAYBE WE WANNA THINK ABOUT IS, UH, WHETHER TO CONSIDER REFORMATTING THE DOWNTOWN AREA WITH OUTDOOR DINING ON A MORE LONGER-TERM BASIS.
AND THAT IS, YOU KNOW, WHAT'S BETTER PARKING SPACES IN DOWNTOWN OR RESTAURANTS BEING ABLE TO OPEN UP MORE OUTDOOR SEATING IN THOSE PARKING SPACES.
UH, THAT CERTAINLY MAKES FOR AN ATTRACTIVE, WHEN YOU GOT A LOT OF VISIBLE ACTIVITY AND SOME OF THE, MAYBE IT'S NOT JUST RESTAURANTS, IT COULD BE OTHER BUSINESSES DOWNTOWN.
MAYBE THEY HAVE THE ABILITY TO SET UP, UH, SOME KINDS OF BUSINESS ACTIVITIES OUT FRONT.
UH THAT'S THAT'S NOT FOOD, OR IT COULD BE CLOTHING, OR I DON'T KNOW, BUT THAT CERTAINLY DOES ADD A LOT OF VITALITY TO A DOWNTOWN PRESENCE.
WHEN WE REALLY HAVE A LOT OF PARKING, WE'VE GOT A LOT OF UNUSED PARKING IN FRONT OF THE POLICE STATION AND THAT'S JUST A BLOCK AWAY.
AND SO I GUESS MY QUESTION ABOUT CARS AND THE COUNSELOR SHOULD BE LOOKING AT THAT AS A, NOT A PERMANENT, BUT A LONGER THAN COVID IDEA FOR DOWNTOWN OKLAHOMA TO REALLY MAKE THE AREA MORE BITE.
I KNOW THERE'S A, A LOT OF CITIES THAT, THAT ARE DOING THAT RIGHT NOW, SEE VIDEOS IN NEW YORK CITY WHERE THEY'VE TAKEN OVER THE PARKING SPACES, AND IT'S ACTUALLY CREATED A NICE ATMOSPHERE, UM, BEING, UH, BEING OUTSIDE.
GO AHEAD, MR. GOBLE, WE COULD SEND THIS TO STAFF AND HAVE THEM GIVE US THEIR THOUGHTS.
YOU KNOW, WHAT DAYS OF THE WEEK, UH, WHAT KINDS OF ACTIVITIES, HOW FAR THINGS LIKE THAT? WE ACTUALLY HAVE BEEN EXPLORING THIS ON OUR OWN BECAUSE WE'RE SEEING IT HAPPEN.
NOT ONLY IN PLACES LIKE NEW YORK CITY, BUT IT'S HAPPENING IN GASOLINE IS HAPPENING IN LITTLE ITALY.
A THREE BEST CANDIDO IS ACTUALLY ELIMINATED ALL OF ITS, UM, PARKING IN A LANE WITHIN THE DOWNTOWN.
SO THEY'VE, THEY'VE EXTENDED RESTAURANTS OUT INTO THE FAR OUT, INTO THE RIGHT OF WAY.
WE ACTUALLY BROUGHT IT UP TO THE DOWNTOWN PARTNERSHIP.
THEY REALLY NEEDED TO BE THE ONES THAT WANT TO DO IT.
UM, UH, WE CAN CREATE THE REGULATION THAT WOULD SUPPORT IT.
WE'LL CONTINUE TO, UH, PLUG AWAY AT THAT, BUT WE THINK IT MAKES A LOT OF SENSE.
UM, SO THIS WAS AN INFORMATIONAL ITEM ONLY SORT OF NO MOTION OR VOTE IS REQUIRED.
UH, THERE ARE NO COMMISSION REPORTS ON TODAY'S AGENDA.
[13. ACTIVITIES REPORTS/COMMENTS OF MAYOR WELLS: SANDAG (San Diego Association of Governments) Board of Directors; SANDAG – Audit Committee, San Diego Division; Heartland Fire Training JPA – Alternate; League of California Cities, San Diego Division; LAFCO.]
IS MAYOR WELLS REPORT AS SUBMITTED.[14. ACTIVITIES REPORTS/COMMENTS OF COUNCILMEMBERS:]
ACTIVITIES REPORTS FOR COUNCIL MEMBERS, UH, COUNCILMAN GARRETT, KENDRICK AS REPORTED, UH, COUNCIL MEMBER, BOB MCCLELLAN AS REPORTED COUNCIL MEMBER, STEVE GLOBAL REPORTING, UH, AND ITEM 13 IS MY ACTIVITIES REPORTS AS REPORTED IRMA JOINT COUNCIL COUNCIL MEMBER REPORTS, NO GENERAL INFORMATION ITEMS, NO FIRST OR SECOND READINGS OF ORDINANCES AND NO CLOSE SESSION ON TODAY'S AGENDA.THIS BRINGS US TO THE ADJOURNMENT, UH, THE ADJOURN REGULAR JOINT MEETING WITH ALCOHOL AND CITY COUNCIL AND OAKLAND HOUSING AUTHORITY HELD ON THIS 27TH DAY OF OCTOBER, 2020 IS ADJOURNED, UH, TILL TUESDAY, NOVEMBER 10TH AT 3:00 PM.
THANK YOU VERY MUCH, EVERYONE.