[1:12] Oh [2:07] , I'm leaving [2:07] . [2:08] Mm hmm. [3:36] Oh, well [3:36] . [3:37] Mm hmm. [3:41] All right. [3:42] >> Good morning. [3:46] I will now call the city [3:47] Council meeting of Tuesday, [3:48] MARCH 3rd, 2026 to order. [3:51] Clerk Please call the roll. [3:52] Thank you. [3:52] Council PRESIDENT Council [3:53] Member Campbell. [3:56] Council Member Whitburn or [3:57] Council Member Foster. [3:57] Council Member Yvonne Wilpert. [4:02] Council PRESIDENT Pro Tem Lee [4:02] here. [4:03] Council Member Campos here. [4:05] Council Member Moreno. [4:06] Present Council Member Ella [4:06] Rivera. [4:07] And Council PRESIDENT LaCava. [4:10] Present Also attending [4:11] the meeting our City Attorney [4:11] Heather Ferber, independent [4:12] budget analyst Charles Monica [4:15] and myself for City Clerk Diana [4:15] Fuentes. [4:16] Thank you Council PRESIDENT. [4:16] Thank you. [4:20] Quorum is now present. [4:20] We will begin this morning with [4:21] the land acknowledgment and [4:22] the Pledge of Allegiance led by [4:27] Council PRESIDENT Pro Tem Lee. [4:32] Good morning. [4:33] We respectfully acknowledge [4:34] the commune nation or [4:37] the original inhabitants of [4:37] the Unceded land now known as [4:38] San Diego. [4:39] Despite enduring the horrors of [4:42] genocide and colonization and [4:43] the Cuzmy spirit remains [4:43] unbroken, we honor [4:44] the resilience of their [4:47] ancestors who fought to protect [4:48] their culture and land. [4:49] Today they carry their legacy [4:51] forward ensuring that their [4:52] traditions continue to thrive [4:52] in gratitude and strength. [4:57] We stand with the community [4:58] nation connected to our past [4:58] and committed to a thriving [4:59] future. [5:02] If you'll join me in facing [5:03] the flag, where do you begin? [5:07] I pledge allegiance to the flag [5:07] United States of America and to [5:11] the Republic which stands one [5:12] nation under GOD, indivisible [5:14] with liberty and justice for [5:14] all. [5:19] MADAM City Clerk, please go [5:24] over how the public can offer [5:24] their testimony. [5:25] >> Thank you. [5:25] Council PRESIDENT. [5:26] I'd like to highlight the slide [5:28] that's on the screen that does [5:29] review how the public can offer [5:30] their public testimony. [5:30] During today's meeting please [5:31] note the time allocations for [5:33] proclamation and consent items [5:34] for meeting management [5:34] purposes. [5:37] One minute per item maximum of [5:38] three minutes for three or more [5:38] items are there. [5:42] The order can be found on [5:43] the agenda Summary found online [5:43] or at the back table in [5:47] the back of the room If you are [5:47] in person please complete [5:48] the speaker slip looking at [5:49] the entrance of chambers and [5:49] bring it to the front of [5:52] the room in the clear box. [5:52] Council ambassadors are [5:53] available near the entrance and [5:56] can assist with questions and [5:57] speaker slips knowing no [5:57] further in-person testimony [6:01] will be taken once the council [6:02] begins Virtual testimony. [6:02] Thank you, Council PRESIDENT. [6:03] All right. [6:03] Thank you for that. [6:06] We will now dispense with [6:07] the approval of [6:07] the proclamation items. [6:08] Please introduce them and [6:08] proceed with public comment. [6:11] Thank you. [6:11] The public comment period for [6:12] the proclamation items is now [6:12] open. [6:15] Each speaker will have one [6:15] minute per item per person. [6:16] If you would like to speak on [6:20] three or more items you'll have [6:20] a maximum of three minutes. [6:21] The proclamation items being [6:23] approved are items 30 and 31. [6:24] Jacob Edwards if you can please [6:32] come forward and you're [6:37] speaking on item 30. [6:37] Thank you. [6:41] City Council. [6:42] Thank you for the work you do [6:46] for the city of San Diego. [6:47] Senior Chief Deputy City [6:47] Attorney Donna Adams Today is [6:51] very important to the city of [6:55] San Diego being that the city [6:56] attorney's office is very [6:57] important to the city of San [7:00] Diego. [7:01] With that, I'm standing in [7:05] front of you today to encourage [7:06] a lawsuit to the federal [7:11] government by the city [7:11] attorney's office. [7:15] In doing so along with [7:16] the federal lawsuit could come [7:19] protection orders. [7:20] It could protect city hall, [7:24] the mayor's office, the police [7:29] department witnesses and go far [7:29] and wide. [7:33] >> That would be standing up [7:33] for us citizens. [7:38] Our city and our country. [7:43] >> I highly encourage you to [7:44] encourage the city Attorney's [7:44] office to thank you for that [7:45] concluding remark. [7:48] >> Your time has concluded. [7:49] Thank you for that concluding [7:49] remark. [7:50] I've started the you minute [7:50] timer going to those [7:53] participating remotely. [7:54] Please let me know which item [7:55] or items you wish to speak to. [8:00] Hector if you can please unmute [8:01] I'd like to respond to what [8:05] that guy was saying whatever [8:06] thing he was on So you're [8:13] speaking on just item 30. [8:14] You'll have one minute. [8:14] Please proceed. [8:15] Yeah, I think my Internet's [8:15] kind of break. [8:18] I'm like, Well I knew what that [8:18] guy was talking about that [8:19] item. [8:23] I think the city attorney [8:26] should list and deport all [8:27] these guys and rapidly open up [8:31] all the different places Now [8:32] that we have 75,000 guys on [8:37] Medicare that the government [8:38] knows about and captain to San [8:40] Diego of 75,000 people that are [8:40] here illegally taking benefits. [8:44] They should be the top of [8:45] the list at the city attorney [8:49] to protect us Most. [8:59] Yeah yeah And and out in [9:04] the last here we did a bunch of [9:05] stuff we've been have of [9:09] protective citizens of San [9:09] Diego. [9:14] Not the criminals not the guys [9:14] and then the government [9:15] the state guys. [9:18] Those guys got to go. [9:19] So hopefully the city attorney [9:23] will proclaim Ice Day every [9:23] day. [9:24] >> Your time has concluded. [9:27] Moving on to Michael Schmidt If [9:28] you can please let me know [9:29] which item or items you wish to [9:32] speak to. [9:33] >> Good morning everyone. [9:41] My lovely friends on Santa I'm [9:41] speaking to one on one. [9:42] One on one. [9:46] Is it worth doing proclamation [9:46] Just 30 and 31 right now? [9:47] >> Oh you are. [9:50] I'm thinking of the consensus. [9:51] >> Okay. [9:51] We'll come back to you during [9:52] consent. [9:52] Thank you. [9:55] That does conclude public [9:56] comment on the proclamation. [9:56] >> Thank you, Council [9:57] PRESIDENT. [9:57] All right. [10:00] Thank you. [10:01] City Clerk We'll turn it over [10:02] to council members questions [10:05] and comments and entertain a [10:05] motion and we'll start with [10:06] Council member Whitburn. [10:06] Thank you. [10:10] Council PRESIDENT I am pleased [10:11] to bring forward item 31 [10:11] proclaiming APRIL 25th as [10:15] Soroptimist International of [10:16] San Diego Day in the city of [10:17] San Diego for 95 years [10:20] Soroptimist International of [10:21] San Diego has been a powerful [10:21] force for expanding opportunity [10:25] and economic independence for [10:26] women and girls across our [10:27] community through their Live [10:30] Your Dream Awards. [10:30] Soroptimist International [10:31] provides critical financial [10:34] support to women who are their [10:35] primary breadwinners for their [10:35] families, helping them to [10:36] access education and career [10:40] training that transforms [10:40] people's lives through their [10:44] dream It be it a program local [10:45] girls receive mentorship and [10:45] encouragement to pursue their [10:49] educational and professional [10:49] goals with confidence [10:50] Soroptimist International of [10:51] San Diego also partners with [10:54] organized and serving survivors [10:55] of sex trafficking and domestic [10:59] violence ensuring that women [10:59] have access to the resources [11:00] they need to rebuild their [11:04] lives in a safe and dignified [11:04] way. [11:05] We appreciate their continued [11:06] commitment to empowering women [11:11] and girls in our city to and [11:12] Lady Judy Lawton is with us [11:13] from Soroptimist International [11:14] of San Diego. [11:15] I'd like to invite her to come [11:15] up to the podium and thank you [11:18] very much for being here and [11:19] please share a few words with [11:19] us this morning. [11:20] What an honor. [11:23] Thank you so much. [11:24] Good morning. [11:24] Council PRESIDENT And council [11:25] members. [11:28] My name is Judy Ludden and I'm [11:29] a proud to be a 45 plus year [11:30] member of Soroptimist [11:33] International of San Diego and [11:34] the chair of our 95th [11:34] anniversary celebration. [11:35] I'm here today to recognize [11:38] this remarkable milestone as we [11:41] will celebrating on Saturday [11:42] MARCH 7th at the Bankers Hill [11:43] Club for nearly a century. [11:47] Soroptimist has been dedicated [11:47] to empowering women and girls [11:48] throughout our community by [11:51] providing access to education, [11:52] mentorship and financial [11:56] support, helping them achieve [11:56] economic independence, build [11:57] back better, build brighter [12:00] futures. [12:01] Reaching 95 years of service is [12:02] a testament to the dedication [12:06] of generations of volunteers [12:06] committed to improving [12:07] the lives of girls and women in [12:11] San Diego County. [12:12] It is truly an honor to lead [12:12] the celebration of our legacy [12:16] and continue impact. [12:16] Thank you. [12:17] Thank you. [12:20] And we look forward to APRIL [12:20] 25th being Soroptimist [12:21] International of San Diego Day [12:22] in the city of San Diego. [12:25] And with that I am happy to [12:25] move the proclamations. [12:26] All right. [12:26] Thank you, sir. [12:29] So we have a motion by [12:30] COUNCILMAN Whitburn to move. [12:31] The proclamation will go next [12:31] to council member Vaughn [12:34] Wolpert. [12:35] Thank you Council PRESIDENT For [12:35] item 31. [12:36] I also want to take a moment to [12:38] recognize Soroptimist [12:39] International in San Diego for [12:40] the extraordinary work that [12:40] you've done in our city for 95 [12:41] years. [12:43] It's also wonderful that it [12:44] marches Women's History Month [12:45] as well And so thank you for [12:49] all the work especially you do [12:49] around helping survivors of [12:50] domestic violence get out of [12:53] those situations so they can [12:54] then be empowered to lead their [12:54] own lives. [12:55] And I know in District five in [12:58] my particular community in [12:59] Rancho Bernardo and Pena's [13:00] career so hard to Soroptimist [13:00] work So thank you for all that [13:02] you do. [13:03] I am also honored to bring [13:07] forth on item 30 to join our [13:07] city attorney Heather Ferber to [13:11] recognize Senor Chief Deputy [13:12] City Attorney Dana Adams. [13:12] I cannot believe that Danny, [13:16] you are already time to leave [13:17] our city. [13:17] I hope you can come back as [13:21] original but more For more than [13:22] 28 years, Diana has dedicated [13:22] her career to serving [13:23] the people of San Diego with [13:25] integrity, professionalism and [13:26] unwavering commitment to [13:26] justice. [13:29] A San Diego native like me, [13:30] Dana built her an extraordinary [13:31] career rooted in service for [13:34] the United States Navy judge [13:35] advocate general Corps to [13:36] United States Attorney's Office [13:39] and ultimately to the city's [13:40] attorney's office where she has [13:43] made a lasting impact since [13:44] joining the city in 1997, she [13:44] has handled more than 1300 [13:47] hearings, 400 depositions, 14 [13:48] trials and seven appeals. [13:49] Those numbers reflect not only [13:52] expertise but tireless [13:53] preparation and steady [13:53] leadership and deep [13:57] institutional knowledge as [13:57] chief of our Workers [13:58] Compensation unit, Diana led [13:58] with both strength and [14:01] compassion. [14:02] She mentored 11 attorneys, [14:03] foster collaboration with our [14:06] risk management division and [14:07] worked diligently to ensure [14:08] city employees receive timely [14:08] access to benefits and medical [14:11] care During the covid 19 [14:12] pandemic, she played a key role [14:12] in advancing critical [14:16] presumptions to protect our [14:16] safety, protect our officers, [14:21] lifeguards and firefighters. [14:22] Danny's career is defined not [14:23] just by legal excellence but by [14:25] her commitment to the people [14:26] she worked alongside and [14:26] the employees she served. [14:27] On behalf of the city Council [14:30] and residents of San Diego, I [14:31] want to thank you so much for [14:32] your decades of service not [14:32] only to our city but to our [14:36] nation as well. [14:36] And it's my privilege to be [14:37] able to join our city attorney [14:38] Heather Ferber in proclaiming [14:41] MARCH third, 2026 as senior [14:42] Chief Deputy City Attorney [14:43] Danny Adams Day The city of San [14:44] Diego. [14:44] Dan, you want to come up and [14:53] say a few words So I want to [14:54] say thank you so much. [14:58] >> It's been a pleasure and an [14:58] honor serving the city of San [14:59] Diego. [14:59] We have the ability to [15:03] collaborate with our [15:04] colleagues, take responsibility [15:05] for our own cases and most [15:08] importantly to do the right [15:08] thing. [15:09] And I have really enjoyed being [15:10] in the workers comp unit and [15:13] providing timely and accurate [15:14] benefits along with our risk [15:17] adjusters for all of our city [15:17] employees. [15:18] >> So thank you so much. [15:27] I really appreciate it. [15:28] >> Thank you. [15:28] I will second [15:29] the proclamations. [15:29] All right. [15:30] Thank you. [15:33] Council members, do we have a [15:34] motion by Councilmember [15:34] Whitburn, the second by council [15:35] member Von Wolpert to move [15:37] the proclamation And we'll go [15:37] to our city attorney. [15:38] Thank you so much. [15:39] Council PRESIDENT Today I have [15:41] the honor of joining [15:42] Councilmember Yvonne Wilbert in [15:43] recognizing a truly exceptional [15:43] member of the city attorney's [15:46] office and senior chief Deputy [15:47] City Attorney Diana Adams. [15:50] After more than 28 years of [15:50] dedicated service to the city, [15:51] Diana is concluding a career of [15:55] unwavering commitment to public [15:55] service. [15:56] As the councilmember mentioned, [15:57] she was born and raised in San [15:59] Diego. [16:00] She is a graduate from San [16:01] Diego High. [16:01] The second we have honored this [16:05] year who have left our office. [16:05] She received her bachelor's [16:10] degree from St John's College, [16:10] a master's degree from [16:11] the University of New Mexico [16:12] and came home for her law [16:12] degree at the University of San [16:15] Diego. [16:15] Diana joined the city [16:16] attorney's office in 1997 as a [16:20] criminal prosecutor. [16:21] One year later she joined Civil [16:22] Litigation Division and in 1999 [16:22] she joined the Workers [16:25] Compensation Unit where she has [16:26] been assigned ever since. [16:26] For more than 20 years Diana [16:30] has served as chief of [16:31] the Workers Comp Unit where [16:31] she's mentored attorneys, [16:32] fostered a culture of [16:35] camaraderie and it's a [16:35] testament that her team is here [16:40] and the risk adjusters that she [16:40] works with on a daily basis [16:41] It's not always every attorney [16:44] who has clients who actually [16:44] want to come and celebrate [16:45] them. [16:45] For more than 26 years Diana [16:48] has been a trusted advisor for [16:49] risk management and has played [16:50] a critical role in [16:50] strengthening collaboration [16:54] between attorneys and adjusters [16:54] and helping risk management [16:59] towards awards that they've [16:59] received recently. [17:00] Her impact on city employees [17:00] has been immeasurable. [17:03] Diana advanced the city's [17:04] ability to timely and [17:05] accurately deliver workers [17:08] compensation benefits and was [17:09] instrumental during the initial [17:09] covid 19 Workers Comp [17:13] Resumptions for safety after [17:13] office hours. [17:14] You've heard about the numerous [17:15] hearings that Diana has already [17:18] handled which is remarkable [17:19] given anyone's caseload. [17:19] So I am especially proud to [17:23] join Councilmember von Wilber [17:23] today in honoring Diana's [17:24] extraordinary career. [17:24] Her deep commitment to public [17:27] service and her profound impact [17:28] on the city of San Diego. [17:29] You will be missed and we hope [17:30] you enjoy every moment of your [17:31] retirement. [17:35] >> Thank you so much. [17:41] All right. [17:41] >> With that, I'll thank my [17:42] colleagues and the city [17:43] attorney for bringing these [17:45] proclamations and resolutions [17:46] robbing us of San Diego for [17:47] the work you do every day And [17:50] congratulations to MISS Adams [17:50] on your retirement. [17:51] You will be missed. [17:55] With that we have a motion by [17:56] Councilmember Lipper and [17:56] the second by Councilmember [17:57] Yvonne Wolpert clerk Please [17:58] call the roll. [17:59] >> I'm sorry The voting system [18:03] Please cast your vote that [18:08] passes unanimously 8 to 0 with [18:09] council member Ella Rivera [18:09] absent. [18:10] Thank you, Council PRESIDENT. [18:11] All right. [18:11] Thank you. [18:13] So we will take a brief pause [18:14] for photos and we'll start with [18:15] senior chief deputy City [20:25] Attorney Donna Adams and [21:59] all right with that we will now [22:00] proceed with the approval of [22:01] the consent items. [22:04] >> Are there any requests to [22:05] pull an item by the council Not [22:09] seen any request? [22:10] Clerk Please introduce [22:10] the items and proceed with [22:11] public comment. [22:11] Thank you. [22:14] Please now each speaker will [22:14] have one minute per item per [22:15] person. [22:15] If you would like to speak on [22:16] three or more items you'll have [22:19] a maximum of three minutes. [22:20] The consent agenda includes [22:23] items 5060 101.1 and 500. [22:23] Blaire Beekman if you can [22:27] please come forward you'll have [22:27] three minutes. [22:29] You're speaking on items 50 as [22:33] 501 hundred. [22:34] Please proceed when ready at [22:38] the mic. [22:43] Hi everyone. [22:44] Everyone I'm back from Maui. [22:48] It's been a month and it's nice [22:48] to be back. [22:49] Nice to be back in [22:49] the building. [22:53] Um, I wanted to speak. [22:54] I wrote three items I think I [22:57] only want to mainly speak on [23:01] two items items 50 and 100. [23:02] >> Um, thank you for this. [23:06] So Soroptimist item that was [23:07] here earlier working on child [23:11] trafficking issues a young [23:12] women can get help can relate [23:13] well to trafficking issues here [23:16] in San Diego on many levels. [23:16] A really interesting item. [23:17] Thank you. [23:23] Um, for item 50 um the My Water [23:27] City web portal is getting [23:28] software service agreements. [23:29] It was that committee a few [23:33] weeks ago and I went on and on [23:37] about the importance of [23:38] the mobile applications that [23:38] this service agreement is going [23:42] to serve and how awesome you [23:43] guys are doing in public works [23:47] to build a more public process [23:47] for the public utilities [23:48] department and smart water [23:52] meter issues that Councilperson [23:53] Campbell and Bond will really [23:57] worked on in the past few years [23:57] They did Awesome. [23:58] I went a little overboard. [23:58] Sorry about that. [24:01] Um, but just to be clear [24:02] they've done awesome work to [24:07] make a real good public process [24:07] that this item is serving. [24:08] Good luck and the continued [24:10] good efforts. [24:11] It's I think a crowning [24:11] achievement of what this [24:16] current council is doing and [24:16] and creating a public space. [24:17] Good luck in the continued [24:21] efforts And for item se 500 um [24:26] resolute and excusing council [24:27] person one will appear from [24:27] certain City Council committee [24:30] meetings. [24:31] I made a references a few [24:35] references last week um we're [24:36] beginning a new stage of war at [24:39] this time The work that I do [24:40] with tech accountability [24:41] immediately gets thrown under [24:46] the bus At these times Council [24:47] PRESIDENT Van Wolpert in her [24:48] She's in a campaign an [24:50] important campaign. [24:51] I really like Councilperson [24:51] Manuel and what she can do [24:52] running for Congress. [24:55] She's going to be a little [24:55] tender and fragile to talk [24:56] about how we can move forward [24:59] with best practices in public [24:59] safety. [25:04] I want to hope this year we can [25:04] still have those good [25:05] conversations here at the local [25:08] level and that we can be [25:09] building a really smart, more [25:10] intelligent future. [25:14] Uh, you know it's based on best [25:15] practices and civil rights and [25:16] civil protections and privacy [25:19] and we don't have to forgo or [25:20] give those things up because of [25:25] war, because of So we have [25:25] the PRESIDENT Van Wilbur can [25:28] have a good campaign and he's [25:29] actually she's been learning a [25:29] lot And I hope we can learn how [25:33] to speak more clearly together [25:33] that we really can still [25:34] continue best practices in [25:35] the coming year and good luck [25:38] in the ways to talk about this [25:39] publicly and that we can do it [25:39] together. [25:40] Thank you. [25:40] Thank you. [25:43] I started the five minute timer [25:44] because there are no other [25:44] speakers here in council [25:45] chambers. [25:45] We have three in the virtual [25:48] queue starting with 7499 If you [25:49] can please let me know which [25:53] item or items you wish to speak [25:54] to on the consent agenda. [25:58] >> 7499 Item 5100 and 101 [25:59] You'll have three minutes. [26:03] >> Please proceed. [26:07] But because it's key here all [26:08] three of these items are [26:08] contracts of one form or [26:12] another with private businesses [26:13] and organizations. [26:13] I understand that the city [26:17] sometimes needs to enter into [26:18] such contracts for products and [26:22] services but I have to ask who [26:23] exactly in this city is on [26:27] the hook for the conduct of [26:27] these businesses? [26:31] There should be at least one [26:32] person who is publicly [26:36] accountable for the conduct of [26:37] any private business [26:38] contracting with the city of [26:42] San Diego and that one person's [26:42] name and contact information [26:47] should be provided internally [26:48] and publicly available to all [26:52] citizens not some bureaucrat [26:53] that we have to go find should [26:57] be publicly and prominently [26:58] available. [26:58] For example, who is the one [27:02] person who is accountable for [27:03] the conduct of the business [27:04] leasing our Torrey Pines Glider [27:08] port And where would citizens [27:08] find the name of that one [27:13] person with those thoughts in [27:14] mind I am asking the City [27:14] Council to ensure that each and [27:18] every contract with a private [27:19] business including these three [27:20] that I've mentioned includes [27:24] the name of the person in this [27:24] city who is publicly [27:25] accountable for the conduct of [27:28] those businesses. [27:29] Do not approve any contract [27:32] unless such an appointment is [27:32] made. [27:37] >> Thank you. [27:38] Next is Michael Schmidt. [27:38] If you can please unmute and [27:39] let me know which item or items [27:46] you wish to speak to. [27:47] >> Speaking to one on one So [27:50] you'll have one minute. [27:50] >> Please proceed. [27:51] All right. [27:56] Good morning everyone. [27:57] Oh my GOD. [28:00] I'm very happy The fact that [28:07] we're going to be having the I [28:11] guess you But I just I have [28:12] been missed. [28:17] I mean, someone I've been [28:18] listening to. [28:21] I appreciate that Everyone [28:32] should come from so speaking to [28:32] everyone here. [28:39] So please try to contact. [28:44] >> Thank you. [28:45] Our final speaker is 8700. [28:56] If you can please unmute 80/700 [28:56] . [28:57] >> There you go. [28:57] Which item or items do you wish [29:00] to speak to? [29:01] I'll speak to 50 6100. [29:01] Please proceed. [29:07] You'll have three minutes. [29:07] Thank you Joy. [29:09] You had a cd three First of all [29:10] I'm number 50. [29:14] I want you to know that I do [29:15] approve this Yet I must say [29:19] the following Some old energy [29:20] water for my water ski web [29:24] portal Total employees 135 or [29:31] admin workforce 57 Asian male [29:36] 21 Asian female 33 white male [29:37] out of 105 135 That's 111 on [29:42] the eeoc I disagree with their [29:43] under represented represented [29:47] categories yet they say they [29:53] are doing better so I hope [29:54] that's true but the I just I [29:58] don't see it once once [29:59] the public registers for the my [30:04] water safety web portal [30:05] automatic switch to paperless a [30:09] question how many customers so [30:09] far are now paperless? [30:14] The company rating is 2.5 out [30:20] of five points Employee [30:20] comments generally very [30:25] negative Yet this is a win win [30:26] and I know a lot of people like [30:30] this If this is a win win for [30:30] our customer service let's [30:36] modify the service agreement. [30:37] Yes I do think we can do better [30:42] on contracts. [30:43] >> Thank you Love to all number [30:47] 60 California Believe what [30:47] the 60 California Building [30:48] standards codes and associated [30:52] beauty codes a question Does [30:53] the muni code states have [30:58] safety procedures for public to [30:59] evacuate the 12th floor And if [31:02] so could you please post on [31:03] the 12th floor in a clear [31:03] location for reading by [31:08] the public attending meetings [31:09] How to do that evacuation a big [31:14] big thank you on that. [31:14] Please listen to me I'm 100 [31:18] Since legal matters permeate [31:19] most of what the city is [31:24] involved in, I fully support [31:25] our great office of the city [31:26] Attorney and this panel outside [31:30] counsel I also want to welcome [31:35] back Council member Campo and [31:36] to once again congratulate he [31:41] and his wife Nadya and [31:41] the birth of their daughter. [31:42] I have a beautiful day. [31:47] Thank you for listening and [31:47] love to all. [31:48] Thank you. [31:48] That concludes public comment [31:49] on the consent agenda. [31:52] All right. [31:53] Thank you, city Clerk. [31:53] And with that will turn it over [31:54] to council members for any [31:58] questions, comments Entertain a [31:58] motion and we'll start with [31:59] Councilmember Lambert. [32:00] I thank you very much. [32:03] I'm happy to make the motion to [32:04] approve the consent agenda. [32:05] I just wanted to comment on [32:08] item 1 to 1 for the f y 26 [32:09] community programs Projects and [32:10] services funding allocation for [32:14] the Rancho Bene Scooters Town [32:15] Council to support our annual [32:15] very low Spanish growth very [32:19] much looking forward to this [32:20] event this year And I want to [32:20] thank especially our [32:21] Transportation Department for [32:25] working overtime to get all [32:26] the people feel on the roads so [32:27] we can actually do that. [32:27] We are still on that road So I [32:31] very much appreciate everybody [32:31] and looking forward to joining [32:32] our community. [32:33] I'm happy to make the motion to [32:36] approve the consent agenda. [32:37] All right. [32:37] Thank you. [32:38] So we have a motion by council [32:39] member Barton Wolpert to move [32:39] the consent items. [32:43] I will go ahead and second and [32:43] offer some brief comments on [32:49] item 50 the pd customer service [32:49] portal. [32:50] This item was heard at [32:50] the Environment Committee in [32:51] FEBRUARY. [32:51] I want to thank the public [32:54] utilities team for [32:55] restructuring this contract and [32:55] continue to save ratepayers [32:56] money. [32:56] This portal has proven [33:00] successful in letting customers [33:01] access their accounts and [33:02] streamlining their payments. [33:05] When the original contract came [33:05] before council in 2021, I made [33:06] the amendment to remove credit [33:07] card fees from being paid by [33:11] the public Utilities department [33:12] That still allows customers to [33:12] pay through automatic debit [33:13] from their checking account and [33:17] avoid any fees and as a result [33:20] saves all ratepayers over $14 [33:21] million in fees. [33:22] Keeping the continuity This [33:22] platform is helpful for [33:23] the customer experience and [33:27] thank you again to the good [33:28] folks of public utilities for [33:29] restructuring this contract And [33:30] with that we have a motion by [33:33] Council member of on Wolpert a [33:33] second by myself Please call [33:44] the roll that passes [33:45] unanimously 9 to 0 Thank [33:46] Council PRESIDENT All right All [33:50] right Thank you. [33:51] Do we have any comments from [33:52] the mayor's office, city [33:53] council member, city Attorney [33:56] and if anybody Analyst or city [33:57] clerk not seeing any will move [33:57] right along. [34:04] We will now take out [34:05] Councilmember Gallardo. [34:05] I think you guys read it. [34:06] I just I won't take too much [34:08] time on this and just as has [34:09] been so often the case for [34:13] the last 13 months or so, 14 [34:14] months, things that are would [34:19] be absolute extraordinary or [34:20] becoming quite routine. [34:20] That doesn't mean that they [34:21] should be normal. [34:25] Over the weekend the PRESIDENT [34:26] Launched an illegal war that is [34:27] putting the lives of San [34:31] Diegans and the friends and [34:32] family of San Diegans at risk. [34:37] And I just didn't want things [34:38] to kind of go on as if that's [34:38] not happening right now. [34:43] We've already lost service [34:44] members and there's also been [34:45] tremendous loss of life beyond [34:49] that. [34:50] So again, just for the sake of [34:57] not normalizing the what should [34:58] never be normal but like what [34:59] Saying something like thank [34:59] you. [34:59] All right. [35:01] Thank you, sir. [35:02] Not seeing anybody else We will [35:02] now take up non agenda public [35:07] comment The council members [35:08] respect and appreciate [35:08] the public's input and are [35:09] fully committed to protecting [35:10] every participant's free speech [35:13] rights at Council and committee [35:14] meetings but please proceed [35:15] with public comment. [35:15] >> Thank you. [35:20] Council PRESIDENT Pearl 2.7 On [35:20] the agenda Public comment is an [35:21] opportunity for members of [35:22] the public to comment on items [35:25] that are not on the agenda but [35:26] within the subject matter [35:26] jurisdiction of the City [35:27] Council. [35:27] Each speaker will have two [35:28] minutes. [35:31] Please know if there are eight [35:32] or more speakers on a single [35:33] topic the maximum time for [35:33] the topic will be 16 minutes. [35:34] If you're in chambers place [35:38] some of your speakers late. [35:39] If you're joining us virtually [35:39] now's the time to raise your [35:40] hand by pressing the raise your [35:41] hand icon or if you are calling [35:43] participant Star nine If I [35:44] could have Jacob Edwards please [35:45] come forward and if I can have [35:45] Blair Beekman, please come [35:49] forward to the other reserved [35:49] seats. [35:53] Jacob Edwards You'll have two [35:54] minutes When you get to the mic [35:55] you can proceed when ready. [35:58] >> Thank you for being the two [35:59] men Excuse very quick I'm going [36:00] to try some this off as quickly [36:00] as possible. [36:04] There's a lot to it. [36:05] We have a lot of concerns in [36:05] this country. [36:09] Our country has been hijacked [36:10] our federal government agencies [36:11] by the mafia. [36:12] It sounds crazy and it is It is [36:16] absolutely the case They're [36:16] doing such things as rolling [36:17] federal grant money through [36:18] mayors offices. [36:21] Did the same thing in San [36:22] Francisco outing the past mayor [36:23] where the entire city is mafia [36:28] in where is is the tug of war [36:29] You had federal threat of [36:33] federal indictments over him [36:34] for mismanaging federal money. [36:39] Now this is madness absolutely [36:40] crazy And the Chinese I've [36:45] recently become aware of well [36:46] aware of what's going on they [36:47] have paid close attention to [36:51] that The allegiance was working [36:52] for the mob and what they do [36:57] going in behind them Bamboozle [36:58] them, bamboozling them for [36:59] the hijacking city is really [37:03] maybe hijacked by the Chinese [37:04] that we have some serious [37:09] national security threat issues [37:10] And that's why I was speaking [37:10] upon a lawsuit with the federal [37:15] government offering protection [37:16] orders protecting the mayor You [37:22] city council seats this city [37:22] hall, the police department [37:23] which would be standing up for [37:28] the citizens of San Diego who [37:28] would be standing up for [37:29] the city and our country our [37:34] country's future is at stake. [37:35] Our lives are at stake. [37:40] Chinese well aware that [37:41] the Gambino's and the Genovese [37:45] and the crime families would [37:46] have us disposed of and badly [37:47] hurt American citizens. [37:47] They were keeping it under [37:52] wraps waiting, waiting for [37:52] the crime families to badly [37:53] hurt us to swoop in as our [37:58] savior, take out our [37:59] government, take out the crime [38:00] families. [38:00] That's why Donald Trump bomb [38:03] Iran to beat China and we're [38:04] building comment blurb Ackerman [38:08] If you can please come forward [38:09] . [38:15] All right where we can be nice [38:15] to think that all the whales I [38:16] was hanging around with in [38:17] Hawaii and now we can be [38:20] listening to this conversation. [38:21] It's nice listening to their [38:26] conversations this past month. [38:27] I hope I can offer a few words [38:28] from the international level [38:29] that I relate to at work here [38:32] at the local level. [38:33] It's time to note the surprise [38:33] of the recent us Israel [38:38] airstrikes in Iraq. [38:39] In Iran there was also a [38:40] respected negotiation process [38:41] that was taking place between [38:45] these different sides in [38:45] the Middle East. [38:46] It makes these current [38:46] airstrikes all the more [38:47] surprising as it possibly has [38:51] no clear end plan and reminder [38:52] and how often the us itself can [38:52] break agreements of trust. [38:57] Thank you for the words of [38:58] counsel personnel aware that [38:59] our national security here at [39:00] the local level does need to be [39:02] seriously questioned by [39:03] ourselves. [39:03] Good luck in the work we do [39:09] together at this time. [39:09] It's from this to note at a [39:10] local level we are simply [39:11] getting better and how to [39:11] seriously limit and to not [39:15] simply allow the practices of a [39:16] continual war from the national [39:16] level to overly affect the day [39:21] to day practices here at [39:21] the local community level. [39:22] The current growth at the local [39:23] level, better reasoning and [39:27] best practices and the current [39:28] local efforts that specifically [39:28] can work towards peace and not [39:32] war can simply offer incredibly [39:33] good examples in how countries [39:33] at the national level can also [39:34] limit war as these ideas of [39:39] best practices. [39:40] Here we're doing content We [39:40] help work towards the dialog [39:41] piece to solve differences in [39:45] the future. [39:46] I can't stress enough that [39:47] the work we do attack [39:47] accountability just creates [39:51] incredibly good examples of [39:51] open democracy best practices [39:58] dialog We work on these things [39:58] locally. [39:59] It creates incredible examples. [39:59] Our federal level will have to [40:03] take notice of So good luck to [40:04] ourselves in our continued work [40:05] at doing best practices here [40:09] What we know how to do best and [40:10] that will just bring peace to [40:10] everyone. [40:11] >> Thank you. [40:16] Thank you. [40:17] I started the moment of time [40:17] are going to those [40:18] participating remotely. [40:19] Growing up or speakers in [40:20] the queue 8700 if you can [40:21] please unmute after that is [40:24] Peggy Walker 8700. [40:24] Thank you. [40:30] Thank you. [40:30] Another 53 or excuse me our [40:31] precious water. [40:36] It begins with snow Then it [40:36] becomes the Colorado River [40:41] water. [40:42] Then after a long journey of [40:47] over 242 miles we cook and [40:52] drink the miracle of water. [40:53] This miracle this is our utmost [40:59] respect and that is not what is [41:00] happening from the people [41:01] involved and the systems they [41:05] have put in place to harness it [41:05] and manage it. [41:10] Please read the article from [41:11] this past Valentine's Day [41:16] titled Western States Again [41:22] The Deadline for Water Bill. [41:23] Here's what We need. [41:28] Crowfoot California's Natural [41:29] resource secretary said talks [41:34] would continue even after [41:34] today's deadline. [41:40] Negotiations and even after [41:41] today's deadline. [41:42] Negotiations in recent weeks [41:47] have centered on the five year [41:48] plan during which states share [41:48] in water cuts. [41:53] While the states in [41:54] conservation conservation [41:59] naturally in hopes of [41:59] stabilizing the water supply to [42:00] a longer term water sharing [42:04] deal can be struck. [42:05] End of quote from me from [42:06] Google If the federal [42:12] government interested change it [42:12] will involve legal pushbacks [42:17] involving our precious miracle [42:18] of water. [42:18] Please don't let that happen. [42:23] More from me later. [42:24] I'm really following this [42:24] closely. [42:29] Please join me in this blog to [42:30] all thank you. [42:30] >> Next is Peggy Walker. [42:35] If you can please unmute Peggy [42:36] Walker after that is 749. [42:36] Thank you. [42:41] Good morning. [42:42] As a public health professional [42:43] and use mentor I came to share [42:47] that yesterday was world team [42:47] Mental Wellness Day. [42:48] It's observed worldwide [42:49] annually to raise awareness [42:53] about mental health issues [42:54] impacting teenagers but it [42:59] should be a daily observation. [43:00] We need to better educate about [43:01] the devastating devastating [43:05] impact of the increasing number [43:06] of intoxicating addictive drugs [43:06] being normalized and made [43:11] available to young people in [43:12] today's marketplace. [43:13] Easy access to high potency [43:18] marijuana bounce and dispenser [43:18] and on the Internet promises [43:19] that legalization would prevent [43:24] youth access have failed. [43:25] And studies show youth use goes [43:25] up when dispensaries are [43:29] located where young people [43:30] live. [43:30] The harmful mental health [43:31] impacts are well documented. [43:36] Further teens are confronted by [43:37] a bevy of unregulated [43:37] intoxicating drugs. [43:42] So the neighborhood convenience [43:42] and liquor stores, gas stations [43:47] and smoke shops many are [43:48] exported from China. [43:48] The sheriff's department has [43:53] issued warnings about these and [43:54] a multitude of candy and snack [43:55] products packaged to attract [43:59] kids that are mislabeled, [44:00] intoxicating and cannot be [44:06] trusted in terms of content. [44:06] Addictive Kratom seven products [44:12] are increasingly available but [44:12] unregulated as are nitrous [44:13] oxide products like Galaxy Gas. [44:18] The da's office and doctors are [44:19] warning that youth are [44:23] suffering addiction and serious [44:24] cold burns from nitrous oxide. [44:25] I'm here to urge increased [44:29] public education which is [44:30] critical for public [44:30] understanding that these [44:35] intoxicating but unregulated [44:36] products are increasingly [44:36] common and dangerous. [44:43] Thank you for your time. [44:43] Thank u next 27499 if you can [44:44] please And after that is our [44:44] next go. [44:48] So before I let Bob Kazuki here [44:49] my recent speeches have been [44:53] highlighting the problems that [44:54] arise when a government shirks [44:55] its duties and turns government [44:59] functions over to a private [45:00] business. [45:00] That's been happening in San [45:01] Diego for years under recent [45:02] administrations and I've given [45:06] several notable examples. [45:07] Let's remember San Diego Mayor [45:07] Jerry Sanders allowing a [45:08] private business to set up [45:12] their own red light camera [45:13] system to issue tickets to [45:13] citizens and take a cut of [45:14] the profits. [45:14] But Mayor Filner discontinued [45:18] that practice. [45:19] Let's remember a private [45:20] business deciding that they [45:20] didn't want to accept cash in [45:21] our city parking structure. [45:25] They were forcing citizens [45:25] these electronic payment to [45:26] park in our own city parking [45:26] structure. [45:27] Let's remember the ongoing [45:30] requirement for citizens to be [45:31] tracked by constant contact in [45:32] Highland Cloud in order to [45:32] obtain updates and to access [45:36] city documents like the agendas [45:37] for this meeting. [45:37] Let's remember the ongoing [45:38] requirement to join use for [45:42] private business and sign an [45:43] abusive contract with our [45:44] California adventure and other [45:44] private business in order to [45:48] hang glider paraglider to our [45:49] own Torrey Pines City Park. [45:50] That abuse of contract requires [45:50] citizens to pay to use their [45:55] park and agree not to sue [45:55] the business even if [45:56] the business is negligent. [45:57] But it's even worse than that [46:00] because being a member of you [46:00] limits citizens rights to even [46:01] speak to this council or to [46:07] even testify in court against [46:07] you. [46:07] But back to businesses. [46:08] In other words, in order to use [46:12] our city park we cannot come [46:13] and speak to this council about [46:13] abuses at that park. [46:14] We cannot testify in court [46:19] about abuses at that park or we [46:20] risk expulsion from use but [46:21] which denies us access to our [46:24] city park That is outrageous. [46:25] These are just the examples [46:25] that I've personally [46:26] encountered in the city. [46:31] It's likely just the tip of [46:31] the iceberg In all of these [46:34] cases citizens are forced into [46:35] relationships of one form or [46:36] another with a private business [46:37] in order to access city owned [46:37] resources. [46:41] This must not be allowed to [46:42] continue. [46:42] Joe Lacob It's time to [46:43] reactivate the Torrey Pines [46:47] City Park Advisory Board and [46:48] implement the Torrey Pines [46:48] waiver to protect citizens [46:54] against the abuse of business [46:54] that you've put in. [46:59] >> If you can please unmute. [47:00] >> Yes. [47:06] Ernie Casco Lori Resident [47:06] Senior Pilot Torrey Pines gone [47:07] to court. [47:08] I second Bob's statement there. [47:12] It's time to stop decline [47:12] within the college [47:13] administration. [47:13] Torrey Pines My report [47:17] complaint is welcome mounted on [47:18] your desk. [47:19] I should not be forced to sign [47:23] a leaseholder Illegal access [47:24] pass waiver when city [47:25] liabilities are already covered [47:25] by California statutes laws. [47:30] It is misappropriation of [47:30] public funding going into [47:31] private accounts and demands [47:36] for transparent city audit that [47:36] would end the corruption. [47:42] It is illegal for anyone for [47:42] anyone Joe Lacob to turn our [47:43] freedom into a privilege for a [47:44] license and a fee under any [47:48] terms, circumstances or [47:49] conditions. [47:49] Allowing this crime to continue [47:50] is a violation of your oath of [47:54] office and automatic forfeiture [47:55] of your chair. [47:55] We have a petition to block [47:59] the beach recreational scandal [48:00] to stop the illegal [48:00] commercialization and [48:06] privatization of Torrey Pines [48:06] Glider Park. [48:07] What else do we have? [48:12] We have unanimous letter of [48:12] support from La Hoya Town [48:13] Council Locations Association [48:18] to Stop the corruption out of [48:18] your administration and [48:19] reconvene Torrey Pines Advisory [48:24] Board for Public Safety and [48:25] Oversight. [48:25] Why haven't you taken action? [48:30] What City Council has a [48:31] beautiful proven solution known [48:31] as the San Diego Recreational [48:36] Waiver that would end [48:36] the dispute on your desk? [48:37] The San Diego recreational [48:41] waiver stops the city lease [48:42] over internal corruption by [48:42] separating the business. [48:47] You're out of control Business [48:47] from public access. [48:48] Your city leaseholder is caught [48:48] blatantly robbing America [48:54] forcing citizens into an [48:54] illegal contract. [48:55] It is your job to stop it. [48:59] The City Council is ultimately [48:59] liable and needs to address [49:00] victims and witness witnesses [49:06] who have been damaged. [49:07] >> The San Diego Your time has [49:08] concluded Judy Strang if you [49:12] can please on know the five [49:13] minute timer is also concluded [49:13] No additional speakers will be [49:16] taken to restrain and then [49:17] hector Me? [49:17] >> Yes. [49:18] Good morning. [49:18] Thank you for this opportunity [49:22] to speak to you from my [49:22] workshop. [49:23] I do not take this opportunity [49:23] lightly. [49:29] I wanted to share with you that [49:29] California is an act of [49:33] the first law ab 455 that [49:34] requires sellers of single [49:34] family homes to disclose in [49:39] writing any known indoor [49:40] smoking, vaping or thirdhand [49:44] smoking or vapor contamination [49:45] to prospective buyers. [49:51] This is marijuana or tobacco. [49:52] Third hand smoke refers to [49:57] toxic residue left behind from [49:58] smoke or vapor When they settle [49:58] into surfaces into building [50:03] materials. [50:04] These pollutants are classified [50:05] under Prop 65 as carcinogens [50:09] and reproductive toxins because [50:10] they can persist for years and [50:11] pose particular risks to [50:15] children, the elderly and [50:16] immunocompromised individuals. [50:22] It's very hard to remove Baby [50:22] four by five classifies third [50:28] hand Smoke is an environmental [50:28] hazard comparable to investors [50:29] radon and lead paint. [50:34] I bring this to your attention [50:35] because it is the first in [50:35] the nation. [50:40] It's so pervasive that it [50:41] becomes part of the California [50:42] Department of Toxic Substances [50:42] Control and it'll go in [50:46] the homeowner's Guide to [50:47] Environmental Hazards. [50:47] It's significant that it [50:52] recognizes the role of tobacco [50:53] and marijuana smoke and vapor [50:53] in the health of everyone [50:54] around us. [50:58] One has to ask ourselves here [50:59] in the city why we have [50:59] businesses that promote and [51:05] make available those things [51:05] that can be smoked and baked [51:06] when it's so clearly hazardous [51:07] to all of our health. [51:11] Thank you. [51:12] >> Thank you. [51:12] And our final speaker is [51:13] Hector. [51:17] If you can please unmute. [51:17] Thanks for taking my call to [51:18] Hector here. [51:24] I got another message to [51:24] the people the occupiers of San [51:25] Diego County counter invaders [51:29] and here illegally that are [51:29] using our benefits medical [51:30] benefits. [51:35] It was in the paper that 75,000 [51:36] guys on Medicare that are [51:36] illegal aliens. [51:42] So there's a these guys get to [51:42] take their bodies and their [51:49] families and go back to their [51:49] countries, man. [51:50] MR. Trump, you got your number [51:51] now you got those illegal [51:51] benefits. [51:54] You don't want to have [51:54] the knock on the door when I [51:55] start wrapping up the raids. [52:00] So if you care about your [52:00] family, sit down with them. [52:01] I go back to wherever it is we [52:05] came from because we're afraid [52:06] of the knock on the door. [52:06] You know, if that's what's [52:12] going to happen they know where [52:13] you're not. [52:14] So to actually free up a lot of [52:17] housing for American citizens [52:21] in San Diego County just like [52:22] the 75,000 people have to go, [52:26] that's probably 120,000 people. [52:27] That's got to lower the rent. [52:32] It'll create less traffic on [52:32] the freeways, open up a lot of [52:38] jobs for American citizens. [52:38] And we can go about trying to [52:39] build that dam before it breaks [52:44] And so if it does break up [52:45] there, it might wipe out Bill [52:46] Gates house. [52:50] You've got a house on the beach [52:50] down there. [52:51] Maybe it'll be a good thing if [52:51] it does break takes out Bill [52:56] Gates House and we can move on [52:56] with our lives. [52:56] Okay. [52:57] Thanks a lot. [52:57] Thank you. [53:01] That concludes our agenda [53:01] Public comment for today's [53:02] meeting. [53:03] I thank you, City Clerk And [53:06] with that we will now adjourn [53:07] for the noon recess and [53:08] reconvene open session at 2 [53:52] I can count to five. [53:52] Good afternoon. [53:53] I will now reconvene the City [53:58] council meeting of Tuesday [53:58] MARCH 3rd, 2026. [53:59] >> Please call the roll. [53:59] Thank you. [54:00] Council PRESIDENT Council [54:04] member Campbell Councilmember [54:04] Whitburn Councilmember Foster [54:09] Councilmember Bunuel for [54:10] Council PRESIDENT Pro Tem Lee [54:15] Councilmember Campeon [54:16] Councilmember Moreno Present [54:17] Councilmember Eloy Rivera and [54:22] Council PRESIDENT LaCava [54:23] present. [54:23] Also taking the meeting are Sin [54:24] City Attorney Michelle Garland, [54:28] independent budget analyst [54:29] Charles Monaco, Council Affairs [54:29] advisor and the Mayor's office [54:30] for I'm sorry and myself our [54:34] city clerk Diana Fuentes. [54:34] >> Thank you Council PRESIDENT [54:35] All right. [54:35] Thank you city clerk for that. [54:39] The quorum is now present. [54:39] >> clerk Please introduce item [54:44] three three zero three Council [54:44] PRESIDENT Item 330 As an [54:45] informational item it is [54:45] the performance audit of [54:46] the city's key performance [54:51] indicators. [54:52] If you'd like to speak to this [54:52] item please submit a speaker [54:53] slip to the front of the room [54:54] in the clear box If you are [54:56] participating remotely now's [54:57] the time to raise your hand by [54:57] pressing Star nine or the raise [54:58] your hand icon. [55:02] Thank you Council for that. [55:03] All right Thank you With that [55:04] staff as you're trying to [55:08] settle in, please introduce [55:08] yourselves for the record and [55:09] let us know how much time you [55:13] need. [55:14] Good afternoon. [55:15] Council PRESIDENT Council [55:19] Members Andy House City Auditor [55:20] We are here to present our [55:21] performance audit of the city's [55:23] key performance indicators or [55:24] KPIs And we have about ten [55:25] minutes please. [55:25] All right. [55:26] When you're ready. [55:29] Thank you. [55:30] According to the city's [55:31] strategic plan, the city values [55:31] transparency and the use of [55:35] data to make informed [55:36] decisions. [55:36] To that end, kpi should be a [55:37] key management and transparency [55:41] tool. [55:42] But we found the city [55:43] underutilized as them due to [55:43] concerns about accuracy and [55:47] relevance and a lack of venues [55:48] for the City Council to discuss [55:49] and provide feedback on [55:53] the KPIs departments produce. [55:53] We want to thank [55:54] the performance and analytics [55:55] department for all of their [55:55] assistance on this audit and [55:59] all the city departments and [56:00] council offices who responded [56:01] to our survey on how they use [56:05] KPIs and their suggestions for [56:05] improvement. [56:06] We heard back from almost every [56:10] department and council office [56:11] and we appreciate all the time [56:12] and feedback you are provided [56:12] to help this audit identify [56:17] many key issues and make [56:18] actionable recommendations to [56:18] improve the usefulness of KPIs [56:23] for various stakeholders. [56:24] The audit team with me here [56:25] today is Principal Performance [56:25] Auditor Nathan Auto Senior [56:30] performance under Nicky Thomas [56:30] and performance auditor Alberto [56:31] Mario and I handed over to them [56:32] for the details on what we [56:35] found and recommended. [56:35] Thanks Andy. [56:36] So for any large complex [56:37] multibillion dollar [56:37] organization performance [56:42] measurement is an essential [56:42] tool in this case allowing [56:43] residents and taxpayers to [56:44] monitor and engage with how we [56:47] as a city are performing. [56:48] And as you're aware, of course [56:49] the city is facing considerable [56:49] fiscal challenges for [56:54] the foreseeable future which [56:55] makes performance monitoring [56:55] just that much more important. [56:56] You can see. [56:59] Three formal audit objectives [57:00] there on the slide. [57:00] But overall we had two formal [57:01] findings. [57:05] And broadly we found that KPIs [57:06] are underutilized like Andy [57:06] said. [57:07] The result of that is that a [57:08] city is missing chances to make [57:11] the best data driven decisions [57:12] in monitoring for key services. [57:13] We found that improved [57:13] oversight of the city's kpi is [57:17] needed to ensure accuracy and [57:18] accountability. [57:18] And a formal kpi philosophy is [57:23] needed to improve comparability [57:24] . [57:25] So we made five recommendations [57:25] to address the issues we found [57:26] and the management did agree to [57:30] all of those recommendations. [57:31] So that's a good thing. [57:32] And just the last slide for me [57:36] here just by way of background [57:37] KPIs as you know are reported [57:37] annually and published for each [57:38] department in the city's budget [57:43] documents. [57:43] There's also a kpi dashboard [57:44] but you can see the more [57:45] familiar version there the blue [57:48] and white table that is in [57:49] the budget documents. [57:50] This is a generic form here to [57:50] keep your eyes include a [57:55] baseline which is based off of [57:55] recent historical data and a [58:00] goal set by the Department. [58:01] And performance and analytics [58:01] plays a supporting role. [58:02] But the departments have a lot [58:03] of autonomy. [58:07] They're responsible for [58:08] selecting, monitoring and [58:09] reporting their own KPIs. [58:09] Go ahead. [58:09] I'll happen again. [58:13] Another time for the findings [58:14] and recommendations. [58:15] I looked at performance order [58:18] in this project and finding [58:19] one. [58:19] We found that in our survey of [58:20] city council offices and city [58:23] departments only one out of [58:24] seven council officers and nine [58:25] out of 27 departments reported [58:25] routinely using KPIs to inform [58:29] budget policy and or [58:30] operational decisions. [58:30] Thus the city is not [58:31] consistently using KPIs to [58:35] inform high level decisions. [58:36] When used correctly, KPIs can [58:36] lead to meaningful [58:36] improvements. [58:40] We found examples of city [58:41] departments and other cities [58:42] using KPIs to help deliver [58:42] improved outcomes for residents [58:46] and evaluate present programs [58:47] and services. [58:47] For example, quotes on this [58:48] slide are from our survey [58:49] showing specific examples of [58:52] how departments have used KPIs [58:53] for decision making. [58:54] The Office of the City Clerk [58:54] used their performance data to [58:55] improve customer satisfaction. [58:59] Similarly the library [59:00] department use their kpi to not [59:00] only improve their future [59:01] performance but also taking [59:04] actions to meet [59:05] the accessibility needs of [59:05] the community. [59:06] There are limited controls and [59:07] oversight that would ensure key [59:10] performance indicators are [59:10] accurate and reliable. [59:11] For example part of Council [59:15] policy 000-02 requires [59:15] departments provide [59:16] explanations for performance [59:17] measures not meeting or [59:21] training towards performance [59:22] targets shown on the slide. [59:22] We found that departments were [59:23] not consistently provided [59:26] explanations. [59:27] Additionally for the past for [59:28] the last ten years [59:28] the Statement of Budgetary [59:29] Principles has included [59:33] guidance for KPIs to be [59:34] reviewed at the Budget and [59:34] Government Efficiency [59:35] Committee. [59:35] However, we found no evidence [59:39] that KPIs have been discussed [59:40] in a systematic or regular [59:41] manner at b n g from fiscal [59:43] year 2015 through fiscal year [59:43] 2025. [59:44] Reviewing performance data on a [59:49] regular basis can help identify [59:50] trends before they become [59:51] problems and help ensure timely [59:51] performance management. [59:52] Because kpi has received [59:56] limited scrutiny and [59:57] examination, a standalone [59:58] performance report specifically [59:58] for KPIs could strengthen [1:00:01] oversight create a culture of [1:00:02] continuous improvement and [1:00:02] promote performance monitoring [1:00:03] as a year round activity [1:00:08] inaccurate or unreliable KPIs [1:00:09] put the city at risk of [1:00:10] inaccurate performance [1:00:10] assessments resulting in [1:00:11] improper policy or management [1:00:15] decisions. [1:00:16] Shown on the Slide 11 different [1:00:16] audits by oci have identified [1:00:17] various issues with KPIs that [1:00:21] were unrealistic, inaccurate, [1:00:21] not relevant or did not follow [1:00:22] best practices. [1:00:22] We also found that council [1:00:26] officers have concerns [1:00:27] regarding the accuracy of [1:00:27] the current KPIs reported in [1:00:28] the budget. [1:00:28] Although pen requires all [1:00:32] the city's KPIs to meet certain [1:00:33] standards such as calculation [1:00:34] methodology and it does not [1:00:34] have the capacity to check a [1:00:37] kpi for accuracy Thus [1:00:38] publishing the kpi calculation [1:00:39] methodology and annual [1:00:39] performance report can [1:00:44] strengthen the oversight of [1:00:45] KPIs by providing a dedicated [1:00:46] forum for departments to review [1:00:49] their kpi methodologies and [1:00:50] potentially discuss them with [1:00:51] City Council or city [1:00:51] leadership. [1:00:56] The city's KPIs are currently [1:00:56] published in tables in [1:00:57] the annual Budget and [1:00:57] the performance dashboard. [1:00:58] However, the city does not [1:01:01] publish tables or graphs with [1:01:02] historical kpi data. [1:01:02] We found that most cities that [1:01:03] we benchmark publish their [1:01:07] historical performance in [1:01:07] online dashboards. [1:01:08] Therefore the city can improve [1:01:09] its online kpi dashboard by [1:01:13] incorporating visuals and [1:01:14] historical data. [1:01:14] Being able to visualize [1:01:15] historical data can help [1:01:16] identify performance trends [1:01:20] over time and improve [1:01:21] monitoring and oversight. [1:01:21] As a supplement to this audit [1:01:22] report we built a performance [1:01:26] dashboard which is shown on [1:01:26] the right as an example of how [1:01:27] the city's dashboard could be [1:01:28] improved to include historical [1:01:32] trends and description. [1:01:33] You can access the city. [1:01:34] You can access the dashboard we [1:01:34] created to view the city's [1:01:38] current KPIs at the link on our [1:01:38] slide and in our report. [1:01:39] Therefore in this finding we [1:01:40] recommend developing a [1:01:44] publishing an annual [1:01:44] performance report for [1:01:45] the city's KPIs creating a kpi [1:01:46] data validation process and [1:01:50] ensure accuracy of the city's [1:01:50] KPIs and developing a publicly [1:01:51] accessible dashboard that [1:01:57] includes historical performance [1:01:58] . [1:01:58] Nick You know what you're [1:01:59] finding too. [1:02:00] Thank you all there To become a [1:02:02] senior performance auditor on [1:02:02] this project. [1:02:03] In finding two we found that [1:02:04] Panda provides support, [1:02:04] training and guidance to [1:02:09] departments on their KPIs but [1:02:09] the three does not have a [1:02:10] formal enforceable policy on [1:02:10] whether kpi should be [1:02:15] aspirational or realistically [1:02:15] achievable. [1:02:16] For example, one department may [1:02:20] set aspirational kpi goals [1:02:21] meaning at the ideal service [1:02:21] level and therefore MAY not be [1:02:22] able to achieve all of [1:02:26] the goals with their [1:02:27] department's budgeted [1:02:27] resources. [1:02:28] At the same time another [1:02:29] department means that its kpi [1:02:32] goals to be attainable and [1:02:33] therefore can report meeting [1:02:33] all of their kpi goals. [1:02:34] Thus we found that meeting a [1:02:38] kpi goal is not necessarily [1:02:39] indicative of how a department [1:02:39] is performing. [1:02:44] As a result, as you can see on [1:02:44] the graph we found that [1:02:45] the percent of KPIs that met [1:02:46] their targets varies widely [1:02:50] across city departments ranging [1:02:51] from 0% to 100% due to [1:02:52] the differing ways in which [1:02:56] departments select kpi goals. [1:02:57] It is unclear what conclusions [1:02:57] decision makers and the public [1:03:02] are supposed to reach. [1:03:03] Further, our survey found mixed [1:03:04] beliefs on whether kpi should [1:03:04] be more realistic or [1:03:05] aspirational. [1:03:08] The quotes on this slide are [1:03:09] from our survey. [1:03:10] One response is that kpi should [1:03:14] be aspirational so council can [1:03:14] decide if increased budget is [1:03:15] required. [1:03:15] But the other state that [1:03:16] aspirational KPIs could lead to [1:03:20] unreasonable expectations from [1:03:20] the public. [1:03:21] Most departments and council [1:03:22] offices that took our survey [1:03:26] did agree that departments [1:03:27] should have at least one [1:03:27] realistic kpi and one [1:03:28] aspirational kpi. [1:03:32] Thus a city wide kpi policy [1:03:33] where departments must clearly [1:03:34] define if a target is realistic [1:03:38] or aspirational would help city [1:03:39] council and the public to [1:03:39] compare KPIs across the city [1:03:40] and understand how a kpi should [1:03:44] be used. [1:03:45] Finally at the time of [1:03:45] the audit the city Attorney's [1:03:46] office was the only department [1:03:51] without at least one kpi due to [1:03:51] its concern that certain KPIs [1:03:52] could lead to the perception of [1:03:56] improper motives or incentives [1:03:57] to meet them from their office. [1:04:01] However we benchmarked against [1:04:01] eight comparable offices and [1:04:02] found that many do have [1:04:03] performance measures. [1:04:07] Therefore in this finding we [1:04:08] recommend that panel work [1:04:09] collaboratively with city [1:04:12] leadership to create a formal [1:04:13] policy documenting the city's [1:04:14] kpi philosophy and that [1:04:14] the City Attorney's office work [1:04:19] with Panda to establish and [1:04:19] report a kpi or KPIs. [1:04:25] Panda and City management [1:04:26] agreed to all five of our [1:04:26] recommendations. [1:04:27] This is an informational item [1:04:29] so no action is required and [1:04:30] we're happy to answer any [1:04:31] questions that you MAY have. [1:04:36] Thank you. [1:04:43] But they were all right. [1:04:43] >> So we actually have a [1:04:44] presentation I think first by [1:04:44] Panda. [1:04:48] Alex, I want you to inject [1:04:49] yourself for the record. [1:04:49] >> Sure. [1:04:50] Thank you. [1:04:54] Good afternoon And thank you. [1:04:54] Counsel Present. [1:04:55] My name is Alex Compton and I [1:04:56] serve as director of [1:04:56] the Performance and Analytics [1:05:00] Department. [1:05:01] Our department's mission is [1:05:01] simple to improve how the city [1:05:02] works. [1:05:04] We do that by putting people [1:05:05] first by making data more [1:05:06] usable processes easier and [1:05:10] services better for [1:05:11] the residents of San Diego. [1:05:11] I'll say candidly in a [1:05:12] transparent and holistic [1:05:16] information sharing hasn't [1:05:17] always been the city's [1:05:17] strongest area. [1:05:18] We know that our key [1:05:22] performance indicators can and [1:05:23] must be outcome driven clearer, [1:05:23] more useful to both decision [1:05:24] makers and the public. [1:05:29] The good news is that we are [1:05:30] making steady incremental [1:05:30] progress even within limited [1:05:31] resources. [1:05:35] Thanks in part to this audit [1:05:36] and to the work already [1:05:37] underway across departments [1:05:37] we're seeing measurable [1:05:38] improvement. [1:05:41] One important step forward this [1:05:41] year is the release of [1:05:42] the first volumes of our [1:05:43] comprehensive citywide [1:05:47] performance report. [1:05:48] For the first time this report [1:05:48] will provide a city wide view [1:05:53] of how the organization is [1:05:53] performing. [1:05:54] It will include performance [1:05:55] details for every city [1:05:55] department and will complement [1:06:00] and strengthen department's [1:06:00] annual KPIs. [1:06:01] This is about more than just [1:06:01] reporting metrics. [1:06:05] It's about helping us measure [1:06:06] what truly matters for San [1:06:06] Diegans and ensuring that [1:06:07] performance information is [1:06:11] clear, accessible and aligned [1:06:12] with community priorities. [1:06:13] I want to thank the City [1:06:13] Auditor and the audit committee [1:06:17] for their support and [1:06:18] recognition of the importance [1:06:19] of this work And I would also [1:06:20] like to thank the independent [1:06:23] budget analyst and Kim Desmond [1:06:24] and the Division of Race and [1:06:25] Equity for their partnership [1:06:25] and collaboration on this [1:06:26] effort. [1:06:30] We look forward to continuing [1:06:31] this work and strengthening how [1:06:31] we measure share and improve [1:06:32] performance across the city. [1:06:36] Thank you. [1:06:36] All right. [1:06:37] Thank you Alex for that. [1:06:38] And now I'll turn it over to [1:06:38] the office of the Independent [1:06:42] journalist. [1:06:42] Thank you and good afternoon. [1:06:43] Council PRESIDENT LaCava and [1:06:48] members of the Council. [1:06:49] I'm Erin Noel with the Office [1:06:50] of the ipa. [1:06:50] And with me is Kim Desmond from [1:06:54] Reese and Equity. [1:06:55] Our office does not have [1:06:56] concerns about this item but I [1:06:59] would like to provide brief [1:06:59] comments on three items and [1:07:00] after I conclude I'll pass it [1:07:01] off to Kim to make some [1:07:05] comments regarding [1:07:06] the importance of KPIs and race [1:07:07] inequities work First as [1:07:12] the City auditor staff noted. [1:07:13] This report is intended to help [1:07:14] start a broader conversation on [1:07:17] the city's use of key [1:07:18] performance indicators. [1:07:18] The audit highlights and we [1:07:23] agree that KPIs are essential [1:07:23] for transparency, [1:07:24] accountability and data driven [1:07:30] decision making especially as [1:07:30] the city faces ongoing fiscal [1:07:31] challenges. [1:07:35] KPIs can be valuable tools for [1:07:36] prioritizing programs and [1:07:37] services, evaluating program [1:07:41] effectiveness and enabling [1:07:42] course correction and ensuring [1:07:43] that limited resources are [1:07:47] allocated to areas with [1:07:48] greatest impact. [1:07:48] This means focusing on outcome [1:07:53] oriented KPIs rather than just [1:07:53] outputs or activities. [1:07:54] For example, dsd has a current [1:07:59] output focused kpi measuring [1:08:00] the percentage of building [1:08:01] inspections completed by [1:08:01] the target date which provides [1:08:05] more actionable insight than [1:08:06] simply counting the number of [1:08:06] inspections. [1:08:11] Second, our office works with [1:08:12] the performance and analytics [1:08:13] department and race inequity to [1:08:14] provide feedback for some key [1:08:17] department KPIs in DECEMBER and [1:08:18] JANUARY. [1:08:19] And we plan to continue [1:08:23] reviewing departmental KPIs as [1:08:24] part of our overall review of [1:08:29] the proposed budget. [1:08:29] And lastly regarding the Budget [1:08:30] and Government Efficiency [1:08:35] Committee's review of KPIs as [1:08:35] mentioned by MR. Hampton, Panda [1:08:36] is anticipating bringing an [1:08:41] item on the comprehensive [1:08:41] Citywide Performance report [1:08:42] related to kpi philosophy to be [1:08:47] Jenny and potentially JUNE or [1:08:47] JULY. [1:08:53] And this will help to initiate [1:08:54] review and discussion of KPIs. [1:09:00] And now I'll pass it off to [1:09:01] Kevin Desmond from Reason [1:09:01] Equity. [1:09:02] Good afternoon. [1:09:05] Council PRESIDENT Carbone [1:09:06] Members of Council Kim Desmond [1:09:06] here serving as the Director [1:09:07] for the Division of Region [1:09:11] Equity and ipa. [1:09:12] So wanted to provide some [1:09:13] comments in three categories. [1:09:14] First and foremost you heard [1:09:17] the current state and thank you [1:09:18] to the auditor for providing [1:09:19] this level of analysis will be [1:09:23] candid from a reasonably [1:09:24] perspective to say it is a [1:09:25] challenge to identify equity [1:09:29] without consistent KPIs. [1:09:29] And so with that in this [1:09:35] partnership to address gaps, [1:09:36] disparities in efficiencies in [1:09:36] recreation programs and [1:09:37] stormwater systems, we need to [1:09:41] be clear about the data equity [1:09:42] is an outcome and if it's [1:09:42] inconsistent around [1:09:48] the departments it is really a [1:09:49] challenge for us to do our work [1:09:49] to really systematically [1:09:54] dismantle inequity in the way [1:09:55] that we allocate either fiscal [1:09:55] allocations or how we change [1:10:00] ongoing operations. [1:10:01] And so with that grateful for [1:10:01] that. [1:10:02] And so as noted in the report [1:10:07] we see the inconsistency in [1:10:07] that. [1:10:08] So for recent equity to do our [1:10:09] job we want to make sure that [1:10:12] we're partnering with Panda to [1:10:12] work with all the departments [1:10:13] to get more pointed in precise [1:10:19] around the subjectivity in [1:10:19] the way that KPIs are set. [1:10:20] And so that is a huge culture [1:10:20] shift. [1:10:24] So some of the things that we [1:10:24] have seen for example is making [1:10:25] sure the department goals and [1:10:30] objectives actually match their [1:10:30] KPIs. [1:10:31] And so in order to measure [1:10:31] progress to the auditor's [1:10:37] comment, how do you know [1:10:37] historically you're addressing [1:10:38] the challenges if that's [1:10:39] inconsistent each year? [1:10:39] And so these are the things [1:10:43] that dray instead of just [1:10:43] complaining about it, we're [1:10:44] working with kind of to figure [1:10:48] out how do we fix these things [1:10:48] and how do we make sure that [1:10:49] there is an organizational [1:10:50] shift towards what it means to [1:10:54] be more concise with setting [1:10:55] KPIs in that manner? [1:10:56] And so with that I will say [1:10:59] this data without context is [1:11:00] just information. [1:11:06] And so what we endeavored to do [1:11:06] is to look at the technical [1:11:07] equity plan infrastructure as a [1:11:12] way to contextualize how we're [1:11:13] talking about problematic [1:11:13] disparities through our [1:11:14] different departments. [1:11:19] And so the tv dashboard is [1:11:20] going to be used to provide [1:11:20] context. [1:11:21] So when you're talking about [1:11:21] I'm looking at you talking [1:11:26] Moreno around your excellent [1:11:26] work with your programing [1:11:26] audit. [1:11:27] That's the context, right? [1:11:28] And so in that context we made [1:11:31] an ask questions. [1:11:31] I'm looking to Councilmember [1:11:32] Foster around where are we at [1:11:33] with addressing those [1:11:36] problematic get? [1:11:37] So these are all KPIs. [1:11:38] Equity is an outcome and we got [1:11:43] to do better with how we [1:11:43] showcase that in our work to [1:11:44] address those gaps disparities [1:11:45] in efficiencies. [1:11:50] And so in that we know [1:11:50] the evidence is hard to digest [1:11:54] we could all look at that [1:11:55] right? [1:11:56] And so it is counter we want to [1:12:01] consider how do we have a value [1:12:01] to charter really gives us [1:12:02] the information that we need to [1:12:03] increase the auditor's [1:12:07] perspective built around who's [1:12:08] actually utilizing these Keep [1:12:08] your eyes And so we want to [1:12:09] make sure that the velocity [1:12:13] that you have is easily [1:12:14] digestible and understandable [1:12:14] as you are looking at volume [1:12:15] two of the budget book. [1:12:19] And so I do want to close with [1:12:20] this by saying the work to [1:12:24] change a cultural shift We do [1:12:25] consider KPIs is a large [1:12:26] structural change in this [1:12:26] organization. [1:12:30] And so pointing to [1:12:31] the auditor's finding around [1:12:32] there's one fte in our team has [1:12:37] started to offer workshops with [1:12:38] those employees. [1:12:38] So I want to give a shout out [1:12:42] to Alex Tang and Justin around [1:12:42] . [1:12:43] Getting into the work of an [1:12:44] outcome is different than an [1:12:44] input. [1:12:48] Don't say you're making [1:12:49] progress when you're counting [1:12:49] by people, right? [1:12:50] And so we want to make sure [1:12:55] that we are being more concise [1:12:56] with the way that we are [1:12:56] reporting outcomes. [1:12:57] And also I would say the ways [1:13:01] in which different council [1:13:02] districts MAY have different [1:13:02] levels of engagement as a part [1:13:03] of this conversation. [1:13:07] And so these are all the things [1:13:08] that we want to make sure that [1:13:08] we are able to shift that [1:13:12] culture especially in the space [1:13:13] where the city budget [1:13:14] constraints will happen. [1:13:19] Our ability to allocate more [1:13:20] staffing to this endeavor. [1:13:21] But I will close with this by [1:13:25] saying for recent equity to do [1:13:25] this work will we need to fix [1:13:31] the inconsistency in KPIs that [1:13:32] is our huge challenge. [1:13:32] And so happy to address any [1:13:33] questions and how we see that [1:13:37] throughout all the departments [1:13:37] . [1:13:37] All right. [1:13:38] Thank you to the Office of [1:13:39] the Independent Auditor. [1:13:43] Thank you to Panda and thank [1:13:44] you to the Office of [1:13:44] the Independent Budget analyst [1:13:49] and Kim's work under recent [1:13:49] equity. [1:13:50] >> So with that please proceed [1:13:51] with public comment. [1:13:55] We have no speakers here in [1:13:56] council chambers going to those [1:13:57] participating remotely. [1:13:58] We currently have four speakers [1:14:02] with their hands raised. [1:14:02] Doreen Diaz if you can please [1:14:06] unmute and to speak on the item [1:14:06] 330 regarding the performance [1:14:07] audit. [1:14:12] >> Yes, thank you. [1:14:13] I'm very happy to hear that [1:14:14] Raised in auditing Sorry I [1:14:18] didn't write down the full [1:14:18] name. [1:14:19] Recent equity is going to be [1:14:24] looking at the kpi for accuracy [1:14:31] There is issues other than [1:14:31] inconsistency and kpi but [1:14:36] please please special attention [1:14:37] to all the kpi you receive from [1:14:42] developmental services and from [1:14:48] the Planning Department because [1:14:49] only in areas domestic areas [1:14:55] fostering stating that in very [1:14:56] tight fire zones and [1:15:01] applications when in fact they [1:15:01] are and the developers are [1:15:06] getting away with it So when [1:15:07] you see something unless you're [1:15:13] actually verifying it please do [1:15:14] not rely on this kpi. [1:15:15] Another example is the drainage [1:15:18] can. [1:15:24] It's been cleaned twice since [1:15:24] the JANUARY 22nd 2024 flood [1:15:31] twice and it is still invasive [1:15:31] weed. [1:15:32] I had a neighbor report last [1:15:37] month or JANUARY Gary again [1:15:42] that the drainage channel had [1:15:42] come into her backyard [1:15:48] destroyed grass it made mud but [1:15:48] your records might say oh we [1:15:49] had maintenance done in this [1:15:55] area If you do not go there [1:15:55] right there and look at it, [1:16:00] please do not believe what is [1:16:00] put on paper from that [1:16:01] stormwater department or that [1:16:06] dsd or planning because we are [1:16:12] witnessing breaking flood and [1:16:13] what your time has concluded [1:16:14] next is John Stump. [1:16:18] >> If you can please unmute [1:16:19] after John Stump of the 8700 [1:16:23] piece procedure Hi John Stump [1:16:24] keep copies. [1:16:30] I want to thank the very [1:16:31] talented and committed persons [1:16:35] who worked on this project and [1:16:36] are committed to it. [1:16:37] You know I am past CHAIRMAN Of [1:16:41] the Equal Opportunity [1:16:42] Commission under three mayors [1:16:43] and I served on the government [1:16:47] efficiency and fiscal reform [1:16:48] body. [1:16:48] I also serve the city and [1:16:54] county on a Joint Powers Agency [1:16:58] for more than 20 years. [1:16:59] You know the problem with CPAs [1:17:04] at the moment it's it's like [1:17:05] rearranging the deck chairs on [1:17:10] the Titanic. [1:17:11] The ship you are in fiscal [1:17:16] crisis you don't have [1:17:17] the ability to budget and you [1:17:22] overspend that council needs to [1:17:23] focus its time on reducing its [1:17:27] spending and learning how to [1:17:28] budget. [1:17:33] You know it's very nice that [1:17:34] we're going to spend a lot of [1:17:39] time I think there's what six [1:17:40] staff persons here working on [1:17:45] KPIs but yet the city is $100 [1:17:49] million overspend. [1:17:50] The first thing that you need [1:17:51] to do is get the performance [1:17:56] indicators that you can spend [1:17:57] only within your revenues. [1:18:03] Thank you very much. [1:18:04] Thank you. [1:18:05] Next is when I'm running an [1:18:12] 8700 If you come please and you [1:18:12] think you are Joyce said you [1:18:17] had a cd three First of all I [1:18:23] have a dream realized you have [1:18:24] now and that is because [1:18:24] the CPGs are have been looked [1:18:29] at in audits and it's unfolding [1:18:30] And the second part of [1:18:34] the degree is can dezmond and [1:18:35] she's part of reason equity [1:18:40] thank you to the forces that be [1:18:41] you know here we go I vote for [1:18:46] really realistically all [1:18:46] realistic okay this is my [1:18:52] letter to start with the public [1:18:53] I think your public I have to [1:18:56] at the top of my f 127 budget [1:19:01] needs any additional needed [1:19:02] cost and funding for [1:19:03] implementation and monitoring [1:19:07] that she can transparency and [1:19:08] oversight of what the audit [1:19:11] committee so beautiful is [1:19:17] recommending your public [1:19:18] the best way to get your needs [1:19:23] realized in your communities is [1:19:24] with the vigilant use of kpi. [1:19:28] If we need more resources let's [1:19:29] get them. [1:19:29] If we need more money let's [1:19:30] find it. [1:19:35] Councilmember Rivera this shell [1:19:40] shell provide one answer to [1:19:41] your beautiful important [1:19:47] question What city are we [1:19:47] trying to be? [1:19:48] Office of the City Auditor By [1:19:52] standards Award on this Thank [1:19:52] you Panda. [1:19:53] Thank you. [1:19:58] Thank you, Officer Grayson [1:19:58] Equity. [1:19:59] And lastly, could we please [1:20:00] have panda shadow each [1:20:03] department during [1:20:04] implementation like they did [1:20:05] with the p u d? [1:20:09] This is a beautiful moment. [1:20:10] Let's celebrate and let's get [1:20:10] it done now. [1:20:11] Love you all. [1:20:15] I'm so excited. [1:20:16] >> Thank you. [1:20:16] Next is Alvin. [1:20:17] Let's try it again. [1:20:19] Please unmute. [1:20:25] And my name's Allerdale Mastro [1:20:25] and the Performance de [1:20:26] Performance Indicator. [1:20:30] I can't tell you how [1:20:30] disappointed I am in San Diego. [1:20:31] I know that the revenues are at [1:20:36] an all time high than our [1:20:36] staff. [1:20:40] Your staff has increased 27% [1:20:41] over the last five years even [1:20:46] though the population has only [1:20:47] increased 1%. [1:20:47] Some of the decisions that have [1:20:52] been made I can't find anybody [1:20:56] that even would understand why [1:20:57] going out and spending $65 [1:21:03] million on trash cans in [1:21:03] the middle of this crisis when [1:21:04] many of the citizens have [1:21:08] pretty functional trash cans [1:21:13] and being able to replace them [1:21:14] is just baffling to me. [1:21:15] The other thing that's baffling [1:21:19] is the accountability here that [1:21:20] you have for your employees In [1:21:25] 2004 a turn an attorney that [1:21:25] worked for the city made [1:21:30] $200,000 and she was in she got [1:21:30] a $100,000 raise and was able [1:21:34] to take a four month cruise [1:21:35] which was considered working at [1:21:35] home. [1:21:40] This is the kind of waste and [1:21:41] abuse that the public sees And [1:21:42] and we just don't understand [1:21:42] it. [1:21:46] You want us to believe that if [1:21:47] you cut that out I don't [1:21:51] understand why you wouldn't cut [1:21:51] that. [1:21:52] i haven't heard an explanation [1:21:53] by these panels on these [1:21:53] different issues. [1:21:57] I don't even know how many city [1:21:57] employees go into the office [1:22:02] every day what the policy is. [1:22:03] There could be a lot of [1:22:07] overstepping there and only [1:22:08] thing that seems to be willing [1:22:11] to be cut is a library or a [1:22:12] park or some one is a staff so [1:22:13] large and how is that helping [1:22:16] any performance as our roads [1:22:21] are terrible our street lights [1:22:22] on on. [1:22:26] Oh thank you. [1:22:26] Thank you. [1:22:27] The five minute timer has [1:22:28] included There were five [1:22:28] speakers with their hands at [1:22:31] the time. [1:22:32] No additional speakers will be [1:22:33] taken there only two speakers [1:22:33] with their hands raised now as [1:22:34] well. [1:22:38] No additional speakers will be [1:22:38] taken. [1:22:39] Beekman if you can please on [1:22:39] it. [1:22:40] All right. [1:22:40] Thank you. [1:22:42] We're Big Ben. [1:22:42] Thanks a lot for this item. [1:22:43] It's kind of new to myself. [1:22:47] I mean I have been here you [1:22:47] guys talking about kpi for [1:22:48] the past year or so and I'm [1:22:51] still not totally familiar with [1:22:52] it. [1:22:52] I'm kind of slow at this stuff [1:22:56] and but I'm trying to catch up [1:22:57] . [1:22:57] >> I really liked the comment [1:22:58] from the first public comment [1:23:02] or today on this item is she [1:23:03] made a lot of sense and how I [1:23:04] can understand this issue [1:23:07] the way I'm understanding it [1:23:08] for myself and understanding is [1:23:13] that kpi can be a very nice [1:23:18] reference point and factual [1:23:18] reference point of how to [1:23:19] understand you know your [1:23:24] projects and items and how [1:23:24] they're working And it sounds [1:23:25] like what you were talking [1:23:26] about in the presentation is do [1:23:29] you want to add to that and [1:23:30] present it more in terms of [1:23:34] what can be project goals and [1:23:35] how do you incorporate kpi into [1:23:39] actual corporate project goals [1:23:40] or do you want to treat kpi [1:23:44] Well I think kpi should be [1:23:45] treated as a very factual [1:23:48] accountable thing giving [1:23:49] information about the project [1:23:54] very specific and and you [1:23:55] shouldn't try to overemphasize [1:23:59] being persuasive or overly [1:23:59] flowery with its subject [1:24:00] matter. [1:24:04] Now that comes back to what [1:24:05] the first public comment you [1:24:06] said where he was describing [1:24:06] they're just getting their [1:24:10] facts wrong and something is [1:24:10] going wrong with the facts [1:24:11] process. [1:24:11] >> You're not even doing that [1:24:14] part correctly fully. [1:24:15] So I think you've got to really [1:24:16] pare down and make sure that [1:24:19] kpi is doing something [1:24:19] incredibly factual and we can [1:24:24] just trust it to no end That [1:24:25] there's no partizanship [1:24:25] involved with it just [1:24:26] delivering you know, straight [1:24:29] back about it This is happening [1:24:30] and this is happening and that [1:24:31] takes practice to do that And [1:24:34] then on top of that then you [1:24:35] can add the flowery intentions [1:24:39] and what you know I hope it can [1:24:40] be of a project on top of that [1:24:40] That's my guest work. [1:24:41] >> Thank you. [1:24:41] Thank you. [1:24:45] Our final speaker is Francine [1:24:45] Maxwell You're going to take [1:24:46] from you Afternoon Francine [1:24:49] Maxwell Southeastern San Diego. [1:24:50] Thank you so much for [1:24:51] the presentation from a [1:24:54] department the audit committee [1:24:55] audit department that we truly [1:24:55] trust. [1:24:56] We have some suspects when it's [1:25:00] time to shift and look at other [1:25:00] departments that are [1:25:01] independent and who they [1:25:04] actually are working for and [1:25:05] reporting for And so k p I's [1:25:09] are extremely important because [1:25:10] right now given our fiscal [1:25:15] challenges we are going to be [1:25:16] leading and paying close [1:25:16] attention. [1:25:17] We're looking for the city [1:25:20] council who happens to be [1:25:20] the housing authority [1:25:24] Absolutely to let go over 33 [1:25:25] since San Diego Housing [1:25:25] Commission did. [1:25:26] And so when we're looking at [1:25:30] cuts, when we're looking at a [1:25:30] continuation of care, when [1:25:31] we're looking at equity [1:25:35] absolutely equity for [1:25:35] the taxpayers, the citizens, [1:25:39] the residents And again, when [1:25:40] we're looking at the fact that [1:25:44] there's too many deputy [1:25:45] directors, too many middle [1:25:46] management, this tanda [1:25:49] department should be screaming [1:25:54] Kay, eyes on how much waste we [1:25:55] have when we look at our org [1:25:55] chart. [1:25:59] So again, thank you so much for [1:25:59] this presentation. [1:26:03] We look forward to 10th and we [1:26:04] have a lot of work to do as a [1:26:04] city. [1:26:07] Thank you so much for allowing [1:26:08] me to speak. [1:26:08] >> Thank you. [1:26:09] That does conclude public [1:26:10] comment on this item. [1:26:12] All right. [1:26:13] Thank you, City Clerk As a [1:26:14] reminder this is an information [1:26:17] item No motions required but [1:26:18] I'll turn it over to council [1:26:19] members for questions and [1:26:20] comments And we'll start with [1:26:20] the chair of the audit [1:26:22] committee. [1:26:23] >> Council Member Moreno Thank [1:26:24] you for the presentation and [1:26:27] thank you again to the audit [1:26:27] team for another great audit [1:26:32] Key performance indicators are [1:26:32] important tools for not just [1:26:33] the department using them as [1:26:37] metrics throughout the year but [1:26:38] also for the public and [1:26:38] the City council which is why I [1:26:43] request id for this audit to be [1:26:43] done When done right they allow [1:26:47] us to make budget decisions [1:26:48] based on data and allow us to [1:26:51] see the effectiveness of [1:26:55] spending taxpayer dollars on [1:26:56] one activity versus another. [1:27:00] Unfortunately the way many KPIs [1:27:01] are used and produced here in [1:27:01] the city not are not very [1:27:05] useful for members of [1:27:06] the public or the city Council [1:27:10] to utilize when evaluating [1:27:11] the effectiveness of a [1:27:11] department in providing a [1:27:12] service. [1:27:15] The annual budget includes KPIs [1:27:16] within each department and I [1:27:17] could attest to the fact that [1:27:20] they are often simply not a [1:27:21] good metric to use to determine [1:27:25] a department's effectiveness at [1:27:26] providing a surface service. [1:27:30] This creates a scenario where [1:27:31] the KPIs are not relied upon by [1:27:32] the City Council During [1:27:35] the annual budget discussion [1:27:36] and that is just very [1:27:36] unfortunate. [1:27:40] We love to say we're a data [1:27:41] driven city but this audit [1:27:42] shows we are budgeting year in [1:27:45] and year out without good data [1:27:49] to support budget allocations. [1:27:50] One part of the problem is that [1:27:51] the KPIs are all over all over [1:27:55] the place and not consistent in [1:27:56] what is being measured. [1:27:59] Some as was mentioned are [1:28:00] aspirational goals while some [1:28:04] are focused unrealistic [1:28:05] outcomes based solely on what [1:28:09] can be done down to the dollar [1:28:10] ,these inconsistencies make [1:28:10] them less meaningful measures [1:28:14] for policymakers to consider [1:28:15] when balancing the budget to [1:28:19] ensure these are improved and [1:28:20] helpful to the public, [1:28:21] the Council and public must [1:28:21] have an opportunity to [1:28:25] interface with department staff [1:28:25] to create meaningful KPIs. [1:28:29] Recommendation 1.1 is to [1:28:30] develop and publish an annual [1:28:33] performance report for [1:28:34] the city's KPIs separate from [1:28:35] the city's budget document and [1:28:39] to discuss it at the Budget and [1:28:40] Government Efficiency [1:28:40] Committee. [1:28:41] I think this makes sense and is [1:28:44] definitely a good start to [1:28:45] making improvements to our [1:28:45] KPIs. [1:28:48] In fact our own statement of [1:28:49] budgetary principles say that [1:28:50] the KPIs will be reviewed and [1:28:53] discussed at committee so we [1:28:54] should already be doing it. [1:28:59] However, I would go beyond just [1:29:00] issuing an agenda using a [1:29:03] report and say that multiple [1:29:04] council committees should [1:29:05] discuss the KPIs of the major [1:29:09] city departments that are [1:29:09] tasked with monitoring each [1:29:10] year that we're tasked with [1:29:13] monitoring each year pd [1:29:14] Transportation stormwater stp [1:29:18] fire Those are some that could [1:29:23] be a focus conversation that [1:29:23] provides department directors [1:29:24] with clear direction about what [1:29:27] would be the what would be most [1:29:28] helpful in determining [1:29:28] the effectiveness of a [1:29:29] department's activity [1:29:33] throughout the year. [1:29:33] Finally, I do very much agree [1:29:34] with the recommendations [1:29:37] regarding the city having a [1:29:38] publicly accessible dashboard [1:29:38] that includes historical data [1:29:43] to demonstrate departmental [1:29:43] performance over time. [1:29:47] Other cities do this and [1:29:52] updating it regularly is good [1:29:52] and transparent government [1:29:53] policy and it would be very [1:29:57] useful to the members of [1:29:57] the public especially when [1:30:01] discussing the budget each year [1:30:02] . [1:30:02] The report includes five [1:30:03] recommendations including [1:30:04] developing an annual [1:30:06] performance report establishing [1:30:07] kpi data validation process and [1:30:11] creating a policy that [1:30:12] documents the city's kpi [1:30:16] philosophy. [1:30:16] I. [1:30:22] I do want to make note that [1:30:22] the performance in Natalie an [1:30:23] analytic department is doing [1:30:27] well with the resource is that [1:30:27] have that they have an interest [1:30:31] in assisting departments with [1:30:31] their KPIs but any real success [1:30:35] at updating the metrics we use [1:30:36] comes down to the management [1:30:40] within each department coming [1:30:41] to hand with accurate and [1:30:42] meaningful metrics to be [1:30:45] considered and then using their [1:30:49] expertise to redefine it So [1:30:50] once again thank you for [1:30:51] the audit and that concludes my [1:30:51] comments. [1:30:55] Council PRESIDENT Thank you. [1:30:56] All right. [1:30:56] Thank you, Councilmember [1:30:56] Moreno. [1:30:57] We'll go next to council member [1:30:59] Ella Rivera. [1:31:00] Thank you Council PRESIDENT [1:31:04] Thank you to the auditor [1:31:05] the officers of the auditor as [1:31:05] always for the work that you [1:31:08] all do. [1:31:09] Thank you Councilmember Moreno [1:31:14] for your commitment to not just [1:31:14] the officers to be able to make [1:31:18] sure that we have robust [1:31:18] discussions about what's [1:31:23] brought to your committee. [1:31:24] Our KPIs are should be very [1:31:28] important and could should [1:31:28] serve as a backbone of [1:31:29] effective governance and [1:31:33] accountability And the city [1:31:33] does not have a formal [1:31:34] enforceable policy that clearly [1:31:38] defines whether our KPIs should [1:31:38] be aspirational or [1:31:42] realistically achievable. [1:31:43] I appreciate that this was [1:31:43] named in the report. [1:31:44] I often talk about [1:31:46] the difference between [1:31:47] standards and goals and what do [1:31:51] we want to set standards for [1:31:52] our city and what do we want to [1:31:56] aspire to be as a city in [1:31:56] the future? [1:31:57] And the city should absolutely [1:32:01] be aiming high and signaling [1:32:01] what excellent looks like [1:32:02] excellence looks like And at [1:32:06] the same time we need targets [1:32:07] that are honest about current [1:32:08] capacity and budget so we can [1:32:08] measure our progress toward [1:32:11] those standards. [1:32:12] So finding two lays out a [1:32:12] couple of recommendations. [1:32:16] I'm wondering if if the auditor [1:32:16] could walk us through what [1:32:21] implementation of those [1:32:21] findings would look like in [1:32:25] practice Specifically are there [1:32:26] changes in department [1:32:27] operations reporting structure [1:32:30] oversight? [1:32:31] I can take a first crack at [1:32:31] that. [1:32:35] So finding two there's a couple [1:32:36] of recommendations that go with [1:32:36] that. [1:32:39] The easier one is a smaller one [1:32:40] just has to do with the city [1:32:43] attorney's office to develop a [1:32:44] kpi and they've actually agreed [1:32:45] to do that. [1:32:45] So implementation to your [1:32:48] question there implementation [1:32:49] should be good to go there and [1:32:49] we'll check that with our [1:32:53] regular recommendation follow [1:32:53] up process. [1:32:54] The other recommendation in [1:32:58] that finding was essentially [1:33:02] the kpi philosophy which goes [1:33:03] to that chart we had on there. [1:33:04] The blue bars are all over [1:33:04] the place. [1:33:08] Some departments are achieving [1:33:08] 0%, some are achieving 100%. [1:33:12] So the to bring it back to your [1:33:13] question about what would [1:33:13] implementation look look like [1:33:14] there, I think Panda would [1:33:17] probably be the lead [1:33:17] quarterback working with city [1:33:18] leadership hopefully such as [1:33:19] yourselves in your offices in [1:33:22] terms of like what do we want [1:33:22] to do? [1:33:23] Do we want to do a mix of [1:33:26] realistic and aspirational KPIs [1:33:27] like they do at the federal [1:33:31] government or the city and [1:33:32] county of San Francisco? [1:33:32] Some other examples So it would [1:33:35] really be probably Panda [1:33:36] working with city leadership to [1:33:37] articulate that guidance for [1:33:40] departments so that we as a [1:33:41] city are not just all of the So [1:33:42] all over the place. [1:33:45] Yeah well I certainly like [1:33:46] the idea of us setting some [1:33:50] standards vary across [1:33:51] departments of setting some [1:33:55] baseline nice expectations [1:33:55] about what the public and [1:33:59] the council should expect from [1:34:00] different departments And then [1:34:04] you know always aspiring to do [1:34:05] to do better And and in that [1:34:09] conversation there should be an [1:34:10] understanding of what would be [1:34:10] required in terms of resourcing [1:34:13] in order to get to that higher [1:34:13] level. [1:34:14] So thank you again for all [1:34:15] the work that went into this. [1:34:19] I very much appreciate it. [1:34:20] >> That concludes my comments. [1:34:20] Council PRESIDENT All right. [1:34:21] Thank you. [1:34:24] Council Member We'll overall go [1:34:25] next to Council member Von [1:34:25] Wolpert. [1:34:27] >> Thank you for the audit and [1:34:28] the work on this. [1:34:29] It has been a challenge to try [1:34:33] and negotiate how KPIs are [1:34:33] tracked across budget years and [1:34:34] sometimes KPIs are different [1:34:37] across budget years without any [1:34:37] notice and sometimes there are [1:34:38] no KPIs And so I just [1:34:41] appreciate you doing this work [1:34:42] as well. [1:34:43] I think one question I do have [1:34:46] and it might be for our [1:34:47] management side is how do we [1:34:47] involve our workers in [1:34:51] developing our KPIs Because our [1:34:52] unions are represented, [1:34:53] Employees are the ones doing [1:34:56] the work every day and so they [1:34:57] MAY see things on the ground [1:34:57] that our management doesn't. [1:34:58] So how do we involve [1:34:58] the workers in developing our [1:35:03] goals for our city? [1:35:04] That's a great question and I [1:35:05] know for our team working on [1:35:09] KPIs where we want to involve [1:35:12] as many people as possible in [1:35:13] the process. [1:35:13] One of our constraints last [1:35:14] year was we see positions from [1:35:18] the team that works on KPIs [1:35:19] were reduced and this year [1:35:19] we're anticipating another [1:35:22] reduction. [1:35:23] So that does kind of limit our [1:35:24] capacity to do as many [1:35:27] workshops and get as much input [1:35:28] as we as we would like. [1:35:32] But I think you bring a really [1:35:32] valid point and we do work with [1:35:33] departments largely upon [1:35:37] request from the departments [1:35:38] will reach out for a coaching [1:35:38] session and that's a great [1:35:41] opportunity to analyze [1:35:42] the employee sentiment survey [1:35:43] results we do twice a year So [1:35:46] that's one great way to [1:35:47] incorporate feedback but we can [1:35:48] look into that more and make [1:35:51] sure that we're casting a wider [1:35:52] net. [1:35:52] Yeah, immediately within [1:35:53] the areas for example [1:35:56] the represented employees all [1:35:57] have leadership within their [1:35:57] unions and so they could be [1:35:58] very helpful in providing [1:36:01] feedback to us. [1:36:01] All right. [1:36:02] Well I appreciate the work on [1:36:03] this and I'm looking forward to [1:36:07] improving our KPIs going [1:36:08] forward. [1:36:08] >> Thank you. [1:36:08] All right. [1:36:09] Thanks. [1:36:11] Councilmember Velma Wolpert not [1:36:12] see anybody else in the lights. [1:36:13] Phil offer a few closing [1:36:13] comments. [1:36:16] I want to thank you, COUNCILMAN [1:36:16] Foster. [1:36:17] You can jump in. [1:36:17] Thank you. [1:36:18] i have my apologies. [1:36:20] Council PRESIDENT I mean I'll [1:36:24] keep my comments brief because [1:36:25] this has been something that [1:36:26] has been discussed for quite [1:36:30] some time and I appreciate [1:36:34] the work of the auditor on [1:36:34] this. [1:36:39] I think it's good to have this [1:36:39] item come forward acknowledge [1:36:40] that the KPIs do need [1:36:44] the extensive work that they do [1:36:44] need. [1:36:45] Also appreciate the comments by [1:36:47] the ipa when as it relates to [1:36:51] equity. [1:36:52] But I do want to say this and I [1:36:53] do appreciate how this [1:36:56] conversation is tied to [1:37:01] the budget but it does leave me [1:37:02] in a position as I have dealt [1:37:06] with these over the years and [1:37:11] it takes me back to operations [1:37:12] and as I say, do our directors [1:37:16] truly understand what their [1:37:17] book of business, their [1:37:21] obligation and how to execute [1:37:22] in accordance with all of our [1:37:25] standards The charter federal [1:37:26] statutory requirements, state [1:37:30] requirements and our policies [1:37:31] that we set right As we talk [1:37:35] about the council, as we talk [1:37:36] about council policies, as we [1:37:40] talk about how important equity [1:37:41] is as you can see when we have [1:37:44] an equity conversation I do [1:37:45] appreciate the transparency [1:37:45] that we're hearing as now [1:37:49] the you know, the Department of [1:37:50] Race and Equity is in [1:37:55] the office because Kim, I will [1:37:55] tell you I appreciate [1:37:56] the conversations that we've [1:37:59] been having over the past month [1:37:59] as we are looking at what [1:38:00] improvements we can make. [1:38:04] But I think this drives to [1:38:04] the bigger picture And what I [1:38:05] have been saying that it's very [1:38:09] important that we do have a ceo [1:38:10] and someone with operational [1:38:13] experience because I think we [1:38:14] need that expertise to make [1:38:19] sure that we are executing and [1:38:20] meeting our obligation. [1:38:21] So with that council PRESIDENT [1:38:24] I will leave that there As [1:38:25] Budget Chair I will say I am [1:38:25] very open to this conversation [1:38:28] Looking forward to this [1:38:29] conversation but I am looking [1:38:33] for impact transparency and [1:38:34] accountability, right? [1:38:35] I just can't I just have to [1:38:39] make sure I state that. [1:38:39] So thank you. [1:38:40] All right. [1:38:40] Thanks Councilmember Foster [1:38:44] again, not to anybody else No [1:38:44] lights off for a few closing [1:38:45] comments. [1:38:48] Thank you To the office of [1:38:48] the Independent Audit Auditors [1:38:49] for the good work that you've [1:38:52] done in bringing this forward [1:38:53] and putting it in good plain [1:38:54] speak so that we could wrap our [1:38:57] heads around it. [1:38:58] Thank you for the work of [1:39:02] Performance Analytics Panda for [1:39:03] the work that you do and thank [1:39:07] you to the office of the ipa. [1:39:08] Clearly the move that the City [1:39:11] Council made last JUNE to embed [1:39:12] the Office of Race and Equity [1:39:17] in ipa was a very smart one and [1:39:18] I think it's ultimately going [1:39:18] to be very productive. [1:39:21] I was one of those individuals [1:39:22] who had a very, very, very low [1:39:26] opinion of KPIs going forward [1:39:31] and until I actually heard a [1:39:32] briefing from MR. Iseman and [1:39:35] folks from Panda I had little [1:39:36] hope that there was anything to [1:39:36] be resurrected recommendations [1:39:40] or not if there was no path [1:39:40] forward why bother? [1:39:41] And I think it's somewhat [1:39:44] ironic that most of the work [1:39:45] that's going to be done going [1:39:46] forward is being done by those [1:39:49] middle managers who often get [1:39:50] castigated as the problem with [1:39:50] our city budget. [1:39:54] So I look forward to those [1:39:55] middle managers who bring that [1:39:59] expertise to the conversation [1:39:59] and change it. [1:40:00] The only thing I didn't hear [1:40:04] and I appreciate Councilmember [1:40:05] Moreno and her leadership at [1:40:05] the audit committee and [1:40:08] Councilmember Whitman's role on [1:40:09] the audit committee as well is [1:40:13] where do we go from here? [1:40:14] And a couple of things that [1:40:15] were mentioned I would like [1:40:18] this is there's no action item [1:40:18] here but to suggest that we [1:40:22] don't do a dashboard we've [1:40:23] already convinced ourselves [1:40:24] that the KPIs historically were [1:40:27] not worthy. [1:40:28] Why bother repeating them And [1:40:33] even to go so far as to suggest [1:40:34] that we don't put any KPIs in [1:40:37] the f y 27 budget The work that [1:40:38] panned out and the Office of [1:40:39] recent Equity is doing I've [1:40:42] already heard will not be [1:40:43] completed or reintroduced until [1:40:48] after the budget has to be [1:40:48] adopted So why keep repeating [1:40:49] stuff that actually is not [1:40:52] helpful that the councils are [1:40:53] not off Council members are not [1:40:54] using that departments don't [1:40:57] really believe in And so that [1:40:58] would be my suggestion just to [1:41:02] strip the KPIs out of the f y [1:41:03] 27 proposed budget. [1:41:03] Let's take a let's start a [1:41:04] clean slate. [1:41:07] Let's go back to Ground Zero [1:41:08] Given what we've learned what [1:41:12] the auditors figured out, what [1:41:13] the aba is determining and use [1:41:16] that as the new baseline going [1:41:17] forward and maybe allows us to [1:41:18] focus a little bit more on how [1:41:19] we're going to balance in our [1:41:21] budget rather than creating [1:41:22] tools that won't be done in [1:41:22] time. [1:41:26] The last thing I'll say is and [1:41:30] I it probably didn't need to be [1:41:31] said in this audit but I would [1:41:32] throw out there the city [1:41:35] departments don't produce [1:41:36] widgets. [1:41:36] Some departments do something [1:41:37] You can say did you produce You [1:41:40] should be producing ten widgets [1:41:41] a day Are you producing ten [1:41:42] Which is a very easy metric. [1:41:45] A lot of what departments do is [1:41:50] responding proactively or [1:41:51] reactively to what we see going [1:41:51] on around us. [1:41:55] They're responding to new state [1:41:56] laws. [1:41:56] I'm working on policy that I [1:41:57] don't want to be working on but [1:41:59] Sacramento made a new law and I [1:42:00] have to stop everything I'm [1:42:00] doing. [1:42:04] Focus on that So but [1:42:05] the initial briefing of what [1:42:10] When I see where panda and [1:42:10] the eBay is going gives me hope [1:42:11] that we can actually figure out [1:42:15] and tailor KPIs. [1:42:16] I know my colleagues have said [1:42:19] both can be very fundamental, [1:42:20] can also be aspirational and [1:42:24] that also tries to figure out [1:42:25] what resources we need to [1:42:25] actually deliver those KPIs [1:42:29] which I think has always been [1:42:30] sorely lacking. [1:42:30] So with that I'll stop. [1:42:31] Again, thank you to everybody [1:42:32] that's brought this forward. [1:42:33] This was an important thing to [1:42:34] hear. [1:42:34] It took us a while. [1:42:35] The agenda is out so I [1:42:38] appreciate your patience as [1:42:38] well. [1:42:38] All right. [1:42:39] Thank you Again, that was an [1:42:43] information item No motion was [1:42:43] required. [1:42:44] So with that Clark, please [1:42:49] introduce item f501. [1:42:49] >> Thank you. [1:42:52] Council PRESIDENT Items 501 is [1:42:53] the consideration of an empty [1:42:53] homes tax ballot measure [1:42:54] proposal by council member [1:42:57] Shawn Illo Rivera If you're [1:42:58] here in council chambers and [1:42:59] would like to speak to this [1:43:02] item please be sure to submit a [1:43:02] speaker slip to the front of [1:43:03] the room in the clear box. [1:43:04] If you have people seating you [1:43:06] time please be sure to submit [1:43:07] those speakers slips together [1:43:08] If you are joining us virtually [1:43:11] now's the time to raise your [1:43:12] hand by pressing Star nine or [1:43:13] the raise your hand icon so [1:43:17] that we can hear from you. [1:43:18] >> Thank you, Council PRESIDENT [1:43:18] All right. [1:43:21] Thank you City Clerk With that [1:43:22] And before we turn it over for [1:43:26] the presentation, I see a [1:43:27] number of individuals some of [1:43:27] you perhaps even many of you [1:43:31] MAY be in chambers for the very [1:43:31] first time and just want to [1:43:32] offer a little bit of thought [1:43:35] about protocols going forward. [1:43:36] There's clearly a lot of [1:43:40] passion about this item You [1:43:40] will hear things you agree [1:43:41] with, you will hear things you [1:43:44] disagree with, extend [1:43:45] the courtesy to whether it is [1:43:46] staff, whether it is a council [1:43:46] member or whether it is a [1:43:50] member of the public that is [1:43:50] speaking. [1:43:54] What we have found at is really [1:43:55] quite effective is by giving us [1:44:00] hand signals You like what a [1:44:00] speaker is saying thumbs up [1:44:01] from up here. [1:44:04] It's very obvious what your [1:44:04] feelings aren't If you hear [1:44:05] things you don't like Thumbs [1:44:05] down. [1:44:08] Again a very strong visual [1:44:08] there but do extend [1:44:09] the courtesy to whoever is [1:44:13] speaking. [1:44:14] I know we're going to have a [1:44:14] lot of speakers here. [1:44:16] We want to give them every one [1:44:17] of them a chance to say their [1:44:17] piece. [1:44:18] And again, whether you agree or [1:44:22] disagree, extend the courtesy [1:44:22] to them and let's get started. [1:44:27] So with that I'm a turn over to [1:44:28] my colleague council member [1:44:28] Isla Rivera and after that will [1:44:31] turn to staff for [1:44:31] the presentation sir. [1:44:32] All right. [1:44:33] Thank you Council PRESIDENT. [1:44:36] Appreciate the opportunity. [1:44:37] I've just got some introductory [1:44:38] comments before we handed over [1:44:40] to Maya. [1:44:41] We're here for a really simple [1:44:46] reason and that's because San [1:44:47] Diego are paying too much for [1:44:50] housing and families can no [1:44:50] longer wait for additional [1:44:55] action when homes sit empty for [1:44:55] most of the year during a [1:44:56] housing shortage That hurts all [1:44:56] of us. [1:44:57] It hurts renters. [1:45:00] It hurts first time homebuyers. [1:45:00] It hurts the communities that [1:45:01] depend on teachers, [1:45:04] firefighters and other [1:45:05] essential workers being able to [1:45:05] live near where they serve. [1:45:09] Throughout this process we've [1:45:09] referenced the vision and [1:45:10] values that motivate this [1:45:14] proposal. [1:45:15] That's why I bring that up [1:45:16] because we want to reiterate [1:45:19] those and we simply want to. [1:45:20] And are you going to be a city [1:45:21] that works for the people who [1:45:23] live here where the people who [1:45:24] live here can see a future for [1:45:24] themselves, for their families [1:45:28] and their friends And we know [1:45:28] that that is only possible when [1:45:29] people believe that they will [1:45:33] be able to afford to live in [1:45:33] this city and ideally own a [1:45:37] home that can provide [1:45:38] the foundation they need to [1:45:38] grow a family and pursue their [1:45:39] dreams. [1:45:41] The proposal Maya will present [1:45:42] is the product of months and [1:45:43] months and months of rigorous [1:45:43] work. [1:45:46] We work closely with [1:45:47] the Treasurer's office to build [1:45:48] a measure that is operationally [1:45:48] sound and implementable. [1:45:52] We worked extremely closely [1:45:52] with the city Attorney's office [1:45:56] since late spring of last year [1:45:57] who brought in expert outside [1:46:00] counsel to ensure that council [1:46:01] and the public can feel [1:46:01] confident in the legal [1:46:06] foundation that this measure is [1:46:06] built upon. [1:46:11] To that point, some have raised [1:46:11] a similar measure in San [1:46:12] Francisco as a reason for [1:46:15] concern about the legal defense [1:46:15] ability of our proposal And I [1:46:20] saw what I will actually refer [1:46:21] to as pretty irresponsible not [1:46:21] even reporting but opinionated [1:46:25] about whether or not the amount [1:46:26] the proper amount of due [1:46:30] diligence has gone into [1:46:30] bringing this measure forward. [1:46:31] I want to reiterate that [1:46:34] the city attorney's office has [1:46:35] been working on this since last [1:46:39] summer. [1:46:40] They've brought in outside [1:46:40] counsel and they've worked [1:46:41] extremely hard and I want to [1:46:44] make sure that that work is [1:46:45] appreciated because there has [1:46:48] been a significant amount of [1:46:49] work And the result of that is [1:46:53] is a measure that is clearly [1:46:54] distinguishable from San [1:46:54] Francisco much more closely [1:46:58] modeled on one that has [1:46:59] withstood this is operating [1:47:03] successfully without successful [1:47:03] legal challenge for over two [1:47:04] years. [1:47:05] With that I'll hand it over to [1:47:08] Maya for the presentation. [1:47:08] Thank you. [1:47:09] Good afternoon. [1:47:09] My name is my process Deputy [1:47:13] Chief of Staff for Policy on [1:47:14] behalf of Councilmember Eli [1:47:14] Rivera. [1:47:14] I'm here to present [1:47:17] the considering of an empty [1:47:18] homes tax ballot measure [1:47:19] proposal by Councilmember Shawn [1:47:20] Eli Rivera and I will need 12 [1:47:25] minutes. [1:47:26] The requested action for this [1:47:30] item is as follows requests [1:47:31] the City Council adopts [1:47:34] the ordinance and some item [1:47:34] eight a place on the JUNE 2nd, [1:47:35] 2026 municipal Special election [1:47:39] consolidate it with [1:47:40] the California State primary [1:47:43] election one measure amending [1:47:44] the San Diego Municipal Code by [1:47:47] adding Chapter three Article 12 [1:47:48] Division one Sections 32 0101 [1:47:52] through 30 201 23 relating to [1:47:52] an empty homes tax. [1:47:57] Furthermore requests that [1:47:58] the City Council adopt [1:47:58] the resolution and so we do so [1:48:01] item b directing the city [1:48:02] Attorney to prepare a ballot [1:48:02] title and summary and an [1:48:06] impartial analysis directing [1:48:07] the Mayor, independent budget [1:48:07] analyst and city auditor to [1:48:08] prepare a fiscal impact [1:48:11] analysis and assigning ballot [1:48:12] arguments all regarding one [1:48:12] measure amending the San Diego [1:48:16] Municipal Code by adding [1:48:16] Chapter three Article 12 [1:48:20] Division one Sections 32 0101 [1:48:20] through 30 201 23 relating to [1:48:25] an empty homes tax to be [1:48:25] submitted to qualified voters [1:48:29] of the City of San Diego at [1:48:30] the Municipal Special election [1:48:30] consolidated with [1:48:31] the California State primary [1:48:34] election to be held on JUNE [1:48:39] 2nd, 2026 2026. [1:48:40] Once again our vision of San [1:48:40] Diego that works for the people [1:48:43] who live here where everyone [1:48:44] can see a future for [1:48:44] themselves, their families and [1:48:48] their friends is what guides us [1:48:49] as well as our goals. [1:48:50] Homes for San Diegans Protect [1:48:53] San Diegans from displacement, [1:48:54] protect San Diego's [1:48:54] neighborhoods and make [1:48:56] speculative investors pay their [1:49:01] fair share. [1:49:02] In the United States there are [1:49:02] nearly as many homes kept for [1:49:05] seasonal recreational or [1:49:06] occasional use than [1:49:07] the combined number of homes [1:49:10] listed for rent or listed for [1:49:11] sale. [1:49:11] The us Census Bureau found that [1:49:14] in 2020 there were over 4.6 [1:49:15] million homes vacant for [1:49:19] occasional use compared to 3.8 [1:49:22] million for rent and 1.2 [1:49:23] million for sale. [1:49:24] At the same time, the current [1:49:24] housing supply shortage is [1:49:27] estimated at 2.8 million homes [1:49:32] nationally. [1:49:32] Other cities are taking a stand [1:49:33] to counter the negative impacts [1:49:37] of empty homes and they are all [1:49:37] tailoring their approach based [1:49:38] on local circumstances. [1:49:42] In Berkeley voters approved [1:49:43] the empty homes tax in 2022. [1:49:46] The tax is imposed on homes [1:49:47] vacant for more than 182 days [1:49:48] annually and Berkeley has begun [1:49:51] collecting the tax. [1:49:52] The Montana legislature [1:49:55] increased taxes on residential [1:49:56] properties used as vacation [1:49:57] homes while reducing taxes for [1:50:01] primary residences and [1:50:02] Washington dc adopted a tax for [1:50:02] vacant residential and [1:50:06] commercial properties. [1:50:11] What is an empty home Empty [1:50:11] homes are homes that are not [1:50:12] the primary residents of a San [1:50:15] Diego and are left vacant for [1:50:16] more than 182 days a year or [1:50:17] over half a year. [1:50:20] These MAY be speculative [1:50:21] investments or a vacation home [1:50:21] for personal use. [1:50:25] Bottom line these are homes [1:50:26] the owner has chosen to keep [1:50:31] empty what is not an empty [1:50:31] home. [1:50:32] This tax will not apply to [1:50:35] homes where San Diegans live. [1:50:36] If you live in the home you [1:50:36] own, this does not apply to [1:50:39] your home. [1:50:40] If you are a renter in San [1:50:41] Diego you do not pay this tax [1:50:45] If you are a landlord to San [1:50:45] Diego tenants you and your [1:50:49] tenants do not pay this tax [1:50:49] whether your tenants are long [1:50:50] term or even medium term such [1:50:53] as traveling nurses who rent [1:50:54] for more than 30 days. [1:50:57] If you live in your home with [1:50:58] an 80 you that you keep empty [1:50:59] as an office or for occasional [1:51:03] visitors he will not be taxed [1:51:04] for your 80 you and whole home [1:51:06] year round 2 or 3 and for short [1:51:06] term rentals are not empty [1:51:07] homes in this ballot measure [1:51:10] and won't be taxed as they can [1:51:11] be occupied up to year round [1:51:12] and contribute revenue to [1:51:15] the city via Toti. [1:51:16] In other words 99% of San Diego [1:51:20] homes are not taxed, 99% of San [1:51:24] Diegans are not taxed and 100% [1:51:25] of homes lived in by San [1:51:25] Diegans are not taxed by [1:51:29] the empty homes tax. [1:51:30] Empty homes can be high priced [1:51:34] downtown condos with bay views [1:51:35] such as these on Pacific [1:51:35] Highway. [1:51:39] As you can see many of the Bay [1:51:40] facing and top floor condos are [1:51:40] vacant in La Hoya. [1:51:44] Many of these beachfront condos [1:51:44] are also sitting empty. [1:51:49] But this is not just an issue [1:51:49] with luxury high rises and [1:51:50] beachfront properties which are [1:51:54] not affordable to most San [1:51:55] Diegans even if they did return [1:51:55] to the market. [1:51:59] There are also homes in our [1:52:00] neighborhoods that are being [1:52:00] left vacant. [1:52:01] These are homes that many [1:52:03] though certainly not all San [1:52:04] Diego families could [1:52:05] realistically afford if given [1:52:08] an opportunity Along Friars [1:52:09] Road there are 48 condos [1:52:13] sitting empty and not available [1:52:14] for a San Diegan to move into. [1:52:17] There are 36 in the college [1:52:18] area including three in this [1:52:22] condo. [1:52:22] The most up to date figure is [1:52:26] that there are currently 5140 [1:52:26] homes sitting vacant with no [1:52:30] renter or owner living in them [1:52:31] based on the owners filing of a [1:52:32] second home exemption of [1:52:35] the rental unit business tax [1:52:35] with the Treasurer's office. [1:52:39] That exemption is the mechanism [1:52:40] available for identifying empty [1:52:40] homes. [1:52:41] The Treasurer's office will be [1:52:45] able to identify empty homes [1:52:45] using this available data that [1:52:47] has the flexibility to adapt in [1:52:52] the future. [1:52:53] The data shows that while these [1:52:53] properties exist across [1:52:56] the city in every community [1:52:57] they are especially [1:52:58] concentrated 45% of empty homes [1:53:02] are in the downtown La Hoya, [1:53:03] Pacific Beach and Peninsula [1:53:06] Communities. [1:53:07] Currently owners of empty homes [1:53:11] do not pay any additional taxes [1:53:12] or fees for their impact on [1:53:12] the cost of housing or [1:53:16] additional impacts such as [1:53:17] hollowing out neighborhoods, [1:53:17] reducing school enrollment and [1:53:21] changing the neighborhood [1:53:21] character. [1:53:22] For all these reasons we have [1:53:25] proposed an $8,000 annual tax [1:53:28] per empty home beginning in [1:53:29] 2020 2027 which increases to [1:53:29] $10,000 beginning in 2028. [1:53:33] With cpi increases beginning in [1:53:38] 2029 empty homes held by [1:53:38] corporate and institutional [1:53:39] investors impose additional [1:53:42] burdens on San Diego's housing [1:53:43] market by removing homes from [1:53:43] residential use and treating [1:53:47] housing primarily as a [1:53:48] financial asset. [1:53:48] Corporate ownership is also a [1:53:52] reasonable proxy for commercial [1:53:53] scale activity and speculative [1:53:53] behavior that undermines [1:53:57] neighborhood stability, reduces [1:53:57] housing availability and makes [1:53:58] it harder for San Diego [1:54:01] families to compete for [1:54:01] homeownership in [1:54:02] the communities where they live [1:54:03] and work. [1:54:03] Corporate entities often [1:54:07] benefit from structural [1:54:07] advantages that individual [1:54:08] homeowners do not including [1:54:12] easier access to capital. [1:54:12] The ability to make all cash [1:54:13] offers portfolio strategies and [1:54:16] the capacity to hold properties [1:54:17] vacant without the same [1:54:17] pressures faced by a household [1:54:21] seeking stable housing. [1:54:21] Those same structures can also [1:54:22] make enforcement more [1:54:22] difficult. [1:54:25] When an empty corporate owned [1:54:26] home creates blight code issues [1:54:30] or neighborhood impacts, it is [1:54:31] often harder for the city and [1:54:31] neighbors to quickly identify [1:54:35] responsible decision makers and [1:54:36] secure compliance in practice. [1:54:40] Llc and similar entities can [1:54:40] reduce transparency and diffuse [1:54:41] accountability Increasing [1:54:45] public costs and delaying [1:54:45] remediation. [1:54:46] For these reasons, imposing a [1:54:50] higher rate on corporate owned [1:54:50] empty homes is a fair and [1:54:51] administrative way to reflect [1:54:54] their disproportionate impact [1:54:55] promote compliance and protect [1:54:55] housing availability and [1:55:00] neighborhood quality. [1:55:00] Accordingly, the measure [1:55:01] applies an additional surcharge [1:55:04] of $4,000 beginning in 2027 [1:55:07] increasing to $5,000 beginning [1:55:08] in 2028 with cpi increases [1:55:11] beginning in 2029. [1:55:11] We developed exclusions from [1:55:16] the tax that are reasonable and [1:55:16] allow for some empty homes to [1:55:17] not be taxed. [1:55:17] With appropriate verification [1:55:21] by the Treasurer's office. [1:55:21] Exclusions include disaster [1:55:25] period Family and residence [1:55:26] period homeowner period lease [1:55:30] period newly built housing [1:55:34] period non ownership period [1:55:35] owner death period Legacy owner [1:55:39] hardship period owner in care [1:55:40] period and qualifying military [1:55:44] service period. [1:55:45] Exemptions are slightly [1:55:49] different than exclusions but [1:55:49] still require verification from [1:55:50] the Treasurer to be exempted [1:55:50] from the tax. [1:55:54] This exemption an owner of an [1:55:55] empty home that had a bonafide [1:55:59] lease or leases for occupancy [1:55:59] for that specific residential [1:56:00] unit for more than 182 days in [1:56:04] the calendar year prior to its [1:56:04] becoming an empty home can [1:56:05] cover several different [1:56:08] scenarios where a rental [1:56:09] property is not occupied for [1:56:10] more than 182 days in a [1:56:13] calendar year. [1:56:13] Another exemption is for an [1:56:18] owner of a property composed of [1:56:19] four or fewer separate [1:56:19] residential units where [1:56:22] the owner occupies one of [1:56:23] the residential units as their [1:56:27] principal residence. [1:56:28] >> Our office began meeting [1:56:28] with the city Attorney's office [1:56:32] in MAY of last year to start [1:56:33] developing our original tax [1:56:33] proposal which followed a [1:56:34] similar framework as [1:56:37] the proposed empty homes tax [1:56:37] being presented today. [1:56:38] Ten months later our work with [1:56:42] the city Attorney's Office [1:56:42] which included engaging with [1:56:46] our outside counsel focused on [1:56:47] answering legal questions to [1:56:48] ensure that we felt comfortable [1:56:51] moving forward. [1:56:52] Before we even began drafting [1:56:52] the measure we presented our [1:56:56] previous proposal twice at [1:56:57] committee creating significant [1:56:57] opportunities for feedback from [1:56:58] the public and committee [1:57:01] members and shaping the current [1:57:02] proposal for an empty homes tax [1:57:04] that we brought forward two [1:57:05] rules last week. [1:57:06] If the measure moves forward [1:57:10] today and is placed on [1:57:10] the ballot that will be [1:57:11] the result of nearly ten months [1:57:12] of working in close partnership [1:57:14] with the city Attorney's office [1:57:15] and the Treasurer's office to [1:57:15] build a strong and legally [1:57:19] defensible ballot measure. [1:57:20] Then if this passes in JUNE [1:57:21] the Treasurer's office will [1:57:24] have over a year and a half to [1:57:25] develop administrative [1:57:25] regulations, hire staff and [1:57:28] procure tools needed to [1:57:29] implement the measure before [1:57:33] they will send the first bill. [1:57:34] The requested action for this [1:57:34] item again is as follows [1:57:38] Request the city Council adopt [1:57:39] the ordinance and submit them [1:57:42] to place on the JUNE 2nd, 2026 [1:57:43] Municipal Special Election [1:57:43] Consolidated with [1:57:44] the California State Primary [1:57:44] election. [1:57:47] One measure amending the San [1:57:48] Diego Municipal Code by adding [1:57:51] Chapter three Article 12 [1:57:51] Division one Sections 32 0101 [1:57:54] through 30 201 23 relating to [1:57:55] an empty homes tax. [1:57:59] Furthermore request that [1:57:59] the City Council adopt [1:58:00] the resolution in five Item b [1:58:01] directing the City Attorney to [1:58:04] prepare a ballot title and [1:58:04] summary and an impartial [1:58:05] analysis directing the mayor [1:58:08] independent budget analyst and [1:58:09] city auditor to prepare a [1:58:10] fiscal impact analysis and [1:58:14] assigning ballot ballot [1:58:14] arguments all regarding one [1:58:15] measure amending the San Diego [1:58:16] Municipal Code by adding [1:58:19] chapter three Article 12 [1:58:22] Division one Sections 32 0101 [1:58:23] through 30 201 23 relating to [1:58:24] an empty homes tax to be [1:58:28] submitted to qualified voters [1:58:28] of the City of San Diego at [1:58:29] the Municipal Special election [1:58:33] Consolidated with [1:58:33] the California state primary [1:58:34] election to be held on JUNE [1:58:37] 2nd, 2026. [1:58:37] I want to express our team's [1:58:42] appreciation for David and [1:58:42] Brett from the City Attorney's [1:58:43] office as well as Liz Ricardo, [1:58:46] Matt and Hiroto from [1:58:47] the Treasurer's office. [1:58:47] We are all available for [1:58:48] questions. [1:58:51] Thank you. [1:58:51] All right. [1:58:52] Thank you Mayor for your [1:58:52] presentation. [1:58:53] With that we'll turn it over to [1:58:54] the Office of the Independent [1:58:56] Budget Analyst. [1:58:56] Thank you Council PRESIDENT And [1:59:00] council members to help inform [1:59:01] the Rules Committee's [1:59:01] consideration of this item Last [1:59:02] week our office released a [1:59:05] report analyzing the potential [1:59:06] fiscal impacts of this measure [1:59:06] on Tuesday of last week. [1:59:10] As you are all aware and as you [1:59:11] heard in the recommendations, [1:59:12] should this item move forward [1:59:12] to the ballot? [1:59:15] My office in consultation with [1:59:16] the City Order and the cfo will [1:59:17] be tasked with preparing [1:59:19] the fiscal impact Statement for [1:59:20] the ballot. [1:59:21] Given the timeline for when [1:59:21] that statement must be [1:59:24] submitted which is MARCH 10th, [1:59:25] a week from the day we have [1:59:26] been working with the cfo and [1:59:28] the auditor over the last [1:59:29] several weeks and continued [1:59:29] working with them to finalize [1:59:30] our assumptions and fiscal [1:59:33] modeling that will go into that [1:59:34] potential fiscal impact. [1:59:35] I would note that some of our [1:59:38] projections have shifted [1:59:38] slightly since last week to [1:59:39] take into account their input. [1:59:43] And our presentation today will [1:59:43] reflect that although by and [1:59:44] large the overall takeaway that [1:59:48] we presented in our report in [1:59:48] our analysis last week remained [1:59:49] today. [1:59:49] Noah Fleishman from our team [1:59:51] will walk you through our [1:59:52] analysis and his presentation [1:59:53] will take about 12 minutes. [1:59:56] Thank you very much Charles. [1:59:57] Last Tuesday, FEBRUARY 24th our [2:00:00] office released ibm report 20 [2:00:01] 6-25 which analyzed [2:00:01] the proposed empty homes tax. [2:00:02] We presented the report to [2:00:05] the rules Committee last [2:00:06] Wednesday. [2:00:06] This will be a similar [2:00:07] presentation with a new fiscal [2:00:08] impact modification that I'll [2:00:12] note later on. [2:00:13] The proposed tax if placed on [2:00:14] the JUNE 2026 ballot and [2:00:14] approved by voters would create [2:00:18] a new excise tax on empty homes [2:00:18] in the city of San Diego. [2:00:21] The tax would be $8,000 in [2:00:22] the first year and $10,000 in [2:00:22] the second year. [2:00:23] There would be an additional [2:00:25] surcharge of $4,000 in [2:00:26] the first year and $5,000 in [2:00:27] the second year on empty homes [2:00:30] owned by corporations not [2:00:30] individuals. [2:00:31] The base tax and surcharge [2:00:32] would be increased annually by [2:00:32] the change in the consumer [2:00:35] price Index which has grown at [2:00:38] an average rate of 3.2% over [2:00:39] the last four decades. [2:00:40] The ordinance language provides [2:00:40] multiple ways for owners to be [2:00:44] exempted or temporarily [2:00:44] excluded from paying the tax. [2:00:45] However, we'd like to draw your [2:00:46] attention to the bottom right [2:00:49] hand box of four potential [2:00:50] scenarios where owners MAY exit [2:00:50] the taxpayer base which is [2:00:53] different than receiving an [2:00:53] exemption. [2:00:54] These include converting [2:00:55] the property to a short term or [2:00:58] long term rental the latter of [2:00:59] which is a stated policy goal. [2:00:59] The property is sold to a new [2:01:00] owner who does not use it as an [2:01:03] empty home. [2:01:03] The owner reclassifies [2:01:04] the property as something other [2:01:05] than an empty home or the owner [2:01:08] avoids paying the tax by other [2:01:08] means. [2:01:09] Both exemptions and exits would [2:01:09] require documented prove to be [2:01:12] provided to the City Treasurer [2:01:13] and there will be enforcement [2:01:13] mechanisms in place that I'll [2:01:14] discuss in a later slide. [2:01:17] The number of units exempted or [2:01:18] that exit the taxable base will [2:01:19] have a direct impact on [2:01:21] the potential revenue the city [2:01:22] MAY receive from the tax. [2:01:23] This dynamic was observed in [2:01:25] other cities with similar taxes [2:01:26] . [2:01:26] >> To help frame expectations, [2:01:27] our office compared San Diego's [2:01:31] proposal with vacancy taxes in [2:01:32] four cities Berkeley, Oakland, [2:01:33] Washington dc and Vancouver. [2:01:36] While the type of tax and [2:01:37] structure varied, I'd like to [2:01:37] direct your attention to [2:01:38] the two columns on the far [2:01:38] right. [2:01:40] These columns show the variance [2:01:41] between the preliminary [2:01:42] estimates those cities had for [2:01:42] their projected number of [2:01:45] taxable units and revenue and [2:01:46] the actual number of taxable [2:01:47] units there were in revenue [2:01:50] they received after the taxes [2:01:51] were implemented. [2:01:51] The pattern across all four [2:01:52] cities was that early estimates [2:01:55] of taxable units and revenue [2:01:56] were significantly higher than [2:01:56] what was actually realized. [2:02:00] The exceptions were Oakland [2:02:00] because staff there already [2:02:01] assume that 60 to 70% of [2:02:04] parcels were initially exempted [2:02:05] . [2:02:05] In Washington dc where [2:02:06] the vacancy tax was assessed as [2:02:07] an ad valorem property tax that [2:02:09] increased with the value of [2:02:10] the homes resulting in revenue [2:02:14] growth or vacancy taxes in a [2:02:15] relatively new tool for cities [2:02:15] to generate revenue and [2:02:16] disincentivize real estate [2:02:19] speculation. [2:02:20] There are a few key takeaways [2:02:20] I'd like to highlight from our [2:02:21] office's research. [2:02:22] First cities experience high [2:02:23] exemptions or drop off rates [2:02:24] and revenue tended to decrease [2:02:27] over time as more units were [2:02:28] occupied or exempted. [2:02:28] Cities reported data accuracy [2:02:32] challenge challenges including [2:02:32] inconsistencies in [2:02:33] self-reported data and the need [2:02:33] to for extensive data cleanup [2:02:36] prior to billing. [2:02:37] And lastly, vacancy taxes do [2:02:38] help reduce the number of empty [2:02:38] homes. [2:02:42] However, recent research shows [2:02:43] limited evidence that these [2:02:43] taxes alone improve housing [2:02:46] affordability because effects [2:02:47] on rents and new construction [2:02:47] tend to be minimal unless [2:02:48] paired with broader housing [2:02:51] policies. [2:02:51] These findings inform [2:02:52] the assumptions and estimates [2:02:56] in our fiscal impact analysis [2:02:57] After this item was heard and [2:02:57] Rules Committee last week our [2:02:58] office met with the Chief [2:03:01] Financial Officer and City [2:03:01] Auditor to refine and update [2:03:02] our fiscal impact model. [2:03:03] The significant changes include [2:03:03] new data from the City [2:03:06] Treasurer which indicates [2:03:07] the potential taxpayer base is [2:03:07] actually 5140 units a small [2:03:11] half percent increase from [2:03:11] the previous number reported. [2:03:12] We increased the number of [2:03:13] exempted units for our [2:03:15] conservative estimate in [2:03:16] the first year of [2:03:16] implementation to adjust for [2:03:17] outcomes seen in benchmark [2:03:17] jurisdictions. [2:03:21] We also assume a new 10% [2:03:22] decline in the taxable unit [2:03:22] base in year two as units [2:03:26] become rentals or become [2:03:26] permanently excluded from [2:03:27] the tax in different ways. [2:03:28] And lastly we incorporate a tax [2:03:31] collection rate of 90% into [2:03:31] the model to account for [2:03:32] the reality that not all [2:03:33] the bills will be paid While [2:03:35] appeals, audits and penalties [2:03:36] are processed. [2:03:36] This collection rate is [2:03:37] consistent with the current [2:03:38] collection rate of the city's [2:03:40] rental unit Business tax. [2:03:41] We believe these changes better [2:03:42] reflect a revenue forecast for [2:03:42] this new tax or shifts in owner [2:03:48] behavior or highly unknown. [2:03:49] >> Based on the City Treasury's [2:03:49] rental unit business tax data [2:03:51] or ebitda, we identified 5140 [2:03:52] units that were self-reported [2:03:55] as vacation or second homes in [2:03:55] 2025. [2:03:56] These are the properties most [2:03:57] likely to meet the ordinances [2:04:00] Definition of an empty home [2:04:01] which is a residential unit [2:04:02] that is not the owner's primary [2:04:04] residence and is a vacant 483 [2:04:04] days or more in a calendar [2:04:05] year. [2:04:05] Of the 5140 units. [2:04:09] We believe that 5097 or 99% are [2:04:10] owned by individuals or [2:04:13] revokable trusts and the other [2:04:14] 43 units are owned by [2:04:15] corporations. [2:04:15] We'd like to note that the rv [2:04:18] exemption data is a proxy for [2:04:19] the potential number of vacant [2:04:20] units but does not include all [2:04:20] units that MAY fit [2:04:23] the Ordinance's definition of [2:04:24] an empty home and MAY also [2:04:24] include units self-reported as [2:04:25] empty homes that no longer meet [2:04:28] the proposed taxes definition. [2:04:29] The latter is The latter is a [2:04:30] data accuracy challenge that [2:04:33] will need to be addressed by [2:04:33] the City Treasurer if the tax [2:04:34] is approved. [2:04:37] We estimate there to be a total [2:04:38] of 5140 units that MAY be empty [2:04:38] homes. [2:04:39] There are multiple ways for [2:04:42] the units to be excluded from [2:04:43] paying the tax that will reduce [2:04:43] the total number of taxable [2:04:44] units and therefore the actual [2:04:49] revenue of the new tax to model [2:04:49] potential number of units that [2:04:50] MAY be excluded from paying [2:04:50] the tax. [2:04:54] We looked at Barkley's [2:04:55] experience implementing a [2:04:55] similar vacancy tax. [2:04:56] As we previously noted in our [2:04:59] benchmarking table Berkeley saw [2:04:59] a 45.5% drop between [2:05:00] the initial estimated numbers [2:05:01] of units that would be subject [2:05:03] to the tax and the actual [2:05:04] number of units that were [2:05:04] built. [2:05:05] Some differences between [2:05:06] Berkley's tax and the San Diego [2:05:09] proposal that we believe [2:05:09] justify modeling a more [2:05:10] conservative range of excluded [2:05:11] units include. [2:05:13] Berkeley's data came from [2:05:14] the Rent Stabilization Board [2:05:15] which maintained data more [2:05:15] likely to accurately estimate [2:05:20] the number of vacant units and [2:05:20] San Diego's are beat data. [2:05:21] Also while Berkeley tax was [2:05:23] targeted towards homes already [2:05:24] on the rental market, intended [2:05:24] taxpayer in San Diego MAY be [2:05:25] more likely to have the ability [2:05:28] and incentive to change their [2:05:29] behavior to be excluded from [2:05:30] paying the tax. [2:05:30] And lastly the relative tax [2:05:33] amount in San Diego is larger [2:05:33] than the amount in Berkeley. [2:05:34] Taken together we believe it's [2:05:38] reasonable to project that of [2:05:38] the 5140 units the percentage [2:05:39] that MAY be excluded from [2:05:42] having to pay the taxable range [2:05:43] between optimistically 45% and [2:05:43] conservatively 70%. [2:05:47] This range is also in line with [2:05:48] other benchmark cities like [2:05:52] Oakland and Vancouver. [2:05:53] Based on our office's updated [2:05:53] model we estimate net general [2:05:56] fund revenue in year one which [2:05:57] is fiscal year 2028 to be [2:05:59] between $9.2 million and $21.4 [2:06:00] million. [2:06:00] Then in year two revenue is [2:06:05] projected to increase to [2:06:06] between $10.4 million and $24.2 [2:06:06] million. [2:06:08] The increased revenue in year [2:06:09] two is a result of a larger tax [2:06:10] amount beyond year two. [2:06:10] We would expect revenue to [2:06:13] decline over time as more units [2:06:13] convert to rentals, sell or [2:06:14] otherwise become occupied which [2:06:15] is one of the stated policy [2:06:20] goals of the proposed tax. [2:06:21] These revenue ranges reflect [2:06:21] different scenarios for [2:06:22] the proportion of units [2:06:25] excluded from paying the tax [2:06:26] and tax collection rate a 10% [2:06:27] plus and minus contingency for [2:06:27] uncertainty And the Treasurer's [2:06:29] preliminary estimated cost to [2:06:33] administer the program. [2:06:34] >> The City Treasurer indicated [2:06:35] that administering the tax [2:06:36] would require an additional [2:06:38] four employees and a one time [2:06:39] it system upgrade which [2:06:41] together would potentially cost [2:06:42] $1 million in the first year of [2:06:42] implementation. [2:06:43] A potential challenge will be [2:06:43] establishing a clear, [2:06:47] enforceable standard of proof [2:06:47] for occupancy. [2:06:48] This will likely require [2:06:48] the City Treasurer to implement [2:06:51] new processes and procedures to [2:06:51] validate self-reported [2:06:52] documents. [2:06:52] The relative magnitude of [2:06:53] the new proposed tax MAY [2:06:55] incentivize avoidance but [2:06:56] violations would result in a [2:06:57] misdemeanor and the Treasurer [2:06:57] would have the power to audit [2:07:01] owners or office would like to [2:07:01] clearly explain the assumptions [2:07:02] and limitations that underpin [2:07:06] our fiscal impact estimates. [2:07:06] We assume the tax will be [2:07:10] effective JANUARY 1st, 2027 and [2:07:10] that exemptions will be [2:07:11] processed and billing completed [2:07:12] in the third quarter of fiscal [2:07:12] year 2028. [2:07:14] Significant delays That [2:07:15] timeline would likely change [2:07:16] the estimate of revenue. [2:07:16] We assume the Treasurer's [2:07:19] operating costs will be [2:07:20] the only new cost to the city. [2:07:21] We also assume the tax [2:07:21] collection rate for the units [2:07:25] subject to the tax will be at [2:07:25] 90%. [2:07:26] We assume 50% of the units [2:07:30] excluded from the empty homes [2:07:30] tax will pay the rental unit [2:07:31] business tax fee But since [2:07:33] the rebate tax is about $55 per [2:07:33] unit it will have minimal [2:07:34] fiscal impact. [2:07:38] And lastly, we assume that [2:07:38] the taxable pool of units will [2:07:39] decrease by 10% in the second [2:07:40] year and that corporate and [2:07:41] individual owned units will [2:07:42] have the same tax exclusion [2:07:46] rate. [2:07:47] >> The scope of our model's [2:07:47] projection is limited by timing [2:07:48] and data availability most [2:07:51] notably we are unable to [2:07:52] estimate the potential revenue [2:07:52] from property tax growth after [2:07:53] the sale of homes or from [2:07:56] the collection of penalties for [2:07:57] late payments. [2:07:57] The range of excluded units we [2:07:58] assume is an aggregate of all [2:08:02] exemptions and exits and we [2:08:03] cannot estimate the number of [2:08:04] empty homes not in the rv [2:08:04] exemption data. [2:08:06] And lastly our office's [2:08:07] analysis was conducted in a [2:08:07] relatively limited time frame [2:08:09] and therefore we were unable to [2:08:10] solicit significant stakeholder [2:08:14] feedback. [2:08:15] In closing, our office finds [2:08:16] that the proposed empty homes [2:08:17] tax would be likely to generate [2:08:19] additional net general fund [2:08:20] revenue and increase the number [2:08:21] of homes available for long [2:08:21] term rental or occupancy over [2:08:22] time. [2:08:24] At the same time revenue from [2:08:25] the tax will likely decline [2:08:25] over time. [2:08:28] If the measure is effective in [2:08:28] reducing vacancy which aligns [2:08:29] with the policy goals of [2:08:30] the tax, our office's updated [2:08:33] Fiscal impact estimate in [2:08:34] consultation with the cfo and [2:08:34] auditor projects the city [2:08:37] collecting $9.2 million to [2:08:38] $21.4 million in net revenue in [2:08:42] year one and $10.4 million to [2:08:42] $24.2 million in year two. [2:08:43] Then we note the fiscal and [2:08:46] housing impacts will depend [2:08:47] heavily on owner behavior. [2:08:48] Thank you very much and will be [2:08:48] available to answer questions [2:08:54] that you MAY have. [2:08:54] >> Okay. [2:08:55] Thank you very much for [2:08:55] the presentation. [2:08:58] We always appreciate the office [2:08:59] of the rba weighing in on these [2:09:00] important matters. [2:09:02] So with that City Clerk please [2:09:07] proceed with public comment. [2:09:08] Thank you. [2:09:08] Council PRESIDENT We do have [2:09:09] over 50 speakers here today [2:09:12] plus those on line another 14 [2:09:13] So they will be going down to a [2:09:17] minute per person. [2:09:18] If I can have the following [2:09:18] individual please come up to [2:09:22] the yellow reserved seats at [2:09:22] the front of the room and then [2:09:23] this first individual please [2:09:24] come up to the microphone. [2:09:27] Ken Miller After Ken Miller Can [2:09:31] I have George cheering Noah Yee [2:09:35] Patricia Serrano Mohammed Omar [2:09:36] Wesley Morgan. [2:09:40] Laurie Lipson Christopher [2:09:41] Kennison If you can all please [2:09:41] come up to the front row and be [2:09:42] prepared. [2:09:45] And if you can proceed when [2:09:50] ready you'll have one minute. [2:09:50] Thank you. [2:09:51] And with respect to the San [2:09:55] Francisco case, that case is [2:09:56] now before the court of appeals [2:10:00] and it will have ramifications [2:10:00] throughout the state of [2:10:01] California and in particular [2:10:05] here in San Diego. [2:10:06] That case was resolved in [2:10:06] the trial court by a motion for [2:10:10] summary judgment where [2:10:10] the court ruled that [2:10:11] the measure violated the taking [2:10:14] clause of the Fifth Amendment. [2:10:15] It was preempted by [2:10:19] California's Ellis Act. [2:10:20] It was unconscionable burden [2:10:24] upon due process equal [2:10:24] protection and private rights. [2:10:29] I think it'd be wise to wait [2:10:30] for the outcome of the Court of [2:10:30] Appeals decision instead of [2:10:31] rushing to litigation. [2:10:34] The United States Supreme Court [2:10:34] has held that the right to [2:10:38] exclude others for months [2:10:39] Property is a core [2:10:40] constitutional property right? [2:10:43] The government cannot compel an [2:10:44] owner to rent a unit over their [2:10:48] objection by opposing [2:10:49] financially coercive penalties [2:10:54] on owners who choose to keep [2:10:54] their property vacant if it is [2:10:58] effectively taken including [2:10:58] comment. [2:10:59] If you have any written [2:10:59] statements we can definitely [2:11:00] continue to pass those out to [2:11:01] the Council is where as well. [2:11:07] George Good afternoon Council [2:11:08] members Thank you for your [2:11:08] time. [2:11:11] My name is George Chen with [2:11:12] the Pacific Southwest [2:11:13] Association of Realtors here to [2:11:13] speak in opposition to [2:11:16] the proposed tax because [2:11:17] the messaging for for this tax [2:11:21] is targeting vacant properties [2:11:21] . [2:11:22] I don't think that the general [2:11:22] public is aware that this is [2:11:26] going to create a legal burden [2:11:26] for every homeowner to prove [2:11:27] that they live in their own [2:11:28] home every year even if they're [2:11:31] exempt they're going to have to [2:11:32] file paperwork in order to [2:11:33] prove that they're exempt And [2:11:36] that's creating an opportunity [2:11:37] for for errors and the need for [2:11:37] appeals. [2:11:40] The other thing is I'm [2:11:41] reviewing the language of [2:11:41] the actual ordinance. [2:11:45] I don't see the particular [2:11:46] section where properties that [2:11:46] are in the process of being [2:11:50] sold are vacant because they're [2:11:51] being sold are exempted from [2:11:51] this. [2:11:52] So if you're an owner looking [2:11:52] to sell your property there's [2:11:55] the potential that it could be [2:11:56] vacant for more than six months [2:11:57] because of a transaction And [2:12:01] then to consider making that [2:12:01] increase of 8000 potentially [2:12:02] into the price that they're [2:12:05] asking for that they choose to [2:12:06] rent it out that just creates [2:12:06] less opportunities for people [2:12:07] to buy a home. [2:12:08] Please vote no. [2:12:09] >> Thank you. [2:12:13] Thank you, Noah. [2:12:14] >> Good afternoon, council [2:12:14] members. [2:12:19] My name is no I'm a researcher [2:12:20] and policy advocate and on [2:12:20] policy initiatives. [2:12:23] And we've known for years that [2:12:24] our city has a structural [2:12:27] budget deficit but every year [2:12:28] we're not identifying any new [2:12:28] revenue. [2:12:28] Instead the mayor tries to [2:12:32] balance the budget by cutting [2:12:33] the programs and services our [2:12:33] community members rely on. [2:12:37] Cuts to libraries, parks, rec [2:12:38] centers and public restrooms [2:12:38] have become the norm. [2:12:42] And this year is no different. [2:12:43] There's over $120 million [2:12:46] deficit and no new revenue has [2:12:46] been identified. [2:12:47] At the same time there are [2:12:48] thousands of San Diegans that [2:12:50] struggled to keep a roof over [2:12:51] their heads while homes across [2:12:52] our city sit empty owned by [2:12:56] people wealthy enough to leave [2:12:56] them vacant. [2:12:57] That is why we must support [2:13:00] the empty second homes tax It [2:13:01] is a revenue solution that [2:13:01] stops asking working class [2:13:02] people to pay the price Instead [2:13:05] ask the wealthiest to [2:13:06] contribute their fair share. [2:13:06] We urge you to support [2:13:07] the empty empty homes tax Take [2:13:11] a step away from austerity and [2:13:11] toward a city that invests in [2:13:12] people and prevents harm before [2:13:15] it happens. [2:13:15] >> Thank you. [2:13:20] Patricia Serrano Good [2:13:20] afternoon. [2:13:25] My name is Patricia Serrano and [2:13:26] I work with Partner. [2:13:26] I'm in support of their homes [2:13:29] for San Diegans working [2:13:29] families, immigrant refugees, [2:13:34] communities of color are [2:13:35] the ones who are struggling [2:13:35] because the housing cost is too [2:13:39] high In San Diego while [2:13:39] corporations and wealthy [2:13:40] investors purchases thousands [2:13:44] of property is leaving me [2:13:49] leaving many of them begging [2:13:50] These empty houses reduce [2:13:50] the supply and driving up [2:13:51] prices. [2:13:53] This is about prioritizing [2:13:54] homes for people who live in [2:13:54] work. [2:13:57] And here in San Diego this [2:13:58] proposal creates accountability [2:13:59] for the wealthiest. [2:14:02] Thank you. [2:14:07] Next is Muhammad. [2:14:08] Good afternoon. [2:14:13] Council members. [2:14:13] My name is Mohammed Omar. [2:14:14] I'm with the Partnership for [2:14:15] the Department of Americans and [2:14:17] also co facilitator for c d [2:14:18] Coalition for Equitable [2:14:18] Development. [2:14:22] I would like to thank council [2:14:23] member Shari Liberal for its [2:14:24] leadership in bringing forward [2:14:24] the homes for San Diego's [2:14:27] proposal. [2:14:28] San Diego continues to face a [2:14:28] serious housing housing [2:14:32] shortage when homes remain [2:14:33] vacant it reduces availability [2:14:33] supply and contributes to [2:14:37] rising costs. [2:14:37] This proposal provides a [2:14:38] solution by encouraging [2:14:38] properties to return to [2:14:42] the market or generate revenue [2:14:43] for affordable housing and [2:14:43] infrastructure. [2:14:47] This proposal creates [2:14:47] accountability to encourage [2:14:48] vacant homes to return to [2:14:52] the market or contributes to [2:14:52] building more affordable [2:14:53] housing Homes should be for San [2:14:56] Diego is not held empty as [2:14:57] investment assets urge support [2:14:58] for this measure. [2:14:59] Thank you. [2:15:04] Thank you Wesley. [2:15:05] >> Good afternoon Council [2:15:05] members. [2:15:08] I had to look at the data [2:15:09] before deciding whether or not [2:15:09] this policy would be meaningful [2:15:12] And it turns out it is in two [2:15:13] ways especially in our coastal [2:15:14] communities where it's [2:15:14] the hardest to build new [2:15:18] housing. [2:15:19] The city's own data shows that [2:15:19] Ocean Beach, Pacific Beach, [2:15:22] Mission Beach and Peninsula [2:15:23] have 1700 empty second homes [2:15:28] are over this entire arena [2:15:28] cycle Since 2021. [2:15:30] Those same communities are [2:15:31] permitted just 526 non-native [2:15:31] homes. [2:15:36] That's more than three empty [2:15:37] homes for every new home we [2:15:38] permitted in the last four [2:15:42] years And the higher the ratio [2:15:43] of 6 to 1 because of a beach 3 [2:15:44] to 1 Mission beach 18 to 1 in [2:15:45] Ocean Beach and plan for 2 to [2:15:45] 1. [2:15:48] And in these coastal areas 80% [2:15:49] of the owners are not local To [2:15:50] San Diego where new [2:15:53] construction faces the most [2:15:53] resistance. [2:15:54] We can't afford to let existing [2:15:58] homes vacant. [2:15:58] And turning to downtown alone [2:15:59] there are 792 empty second [2:15:59] homes. [2:16:03] The equivalent of three full [2:16:04] towers like Vina Noma or [2:16:07] Bayside That stand empty. [2:16:07] And 80% of those owners are [2:16:10] also not local to San Diego. [2:16:10] Thank you. [2:16:10] Thank you. [2:16:15] Including Mark Laurie. [2:16:16] >> Good afternoon. [2:16:20] My name is Laurie Swim. [2:16:21] She her resident of district [2:16:24] three since 1988 in support of [2:16:24] item 501. [2:16:29] It is a disgrace that a city [2:16:29] with such extreme wealth has an [2:16:34] and housing crisis and a severe [2:16:34] lack of low income housing and [2:16:39] where people are being housed [2:16:39] in tents. [2:16:40] Stop capitulating to money and [2:16:44] start working for your constitu [2:16:45] tions taxed wealth individuals [2:16:48] and corporations and invest in [2:16:49] housing, health care and [2:16:53] education for all. [2:16:54] There is no excuse for this [2:16:54] level of lack of basic needs [2:16:57] for so many in a city where [2:16:58] the wealth is abundant. [2:17:03] >> Thank you. [2:17:03] Thank you Christopher. [2:17:04] After Christopher If I can have [2:17:08] Zack Schlegel please come up [2:17:09] and public advocate Shane [2:17:13] Harris Karen Ede Bruce Karen [2:17:17] Christopher Gomes and Ethan [2:17:18] Chavis If you can all please [2:17:23] come forward as well as [2:17:23] Patricia Mondragon All please [2:17:24] come forward to the other [2:17:28] reserve seats Please proceed. [2:17:28] >> The fact that we're here [2:17:29] fighting for a better [2:17:31] opportunity to get housing yet [2:17:32] again is mind blowing [2:17:33] opportunities is all we're [2:17:36] asking for when it boils down [2:17:37] to it, people shouldn't have to [2:17:38] commute an hour or two just to [2:17:38] get to work and still live. [2:17:41] Check the check. [2:17:42] I'm one of those people. [2:17:45] I leave my home by 730 every [2:17:45] morning just to get to work by [2:17:46] 9 A.M.. [2:17:47] I'm not here to dismiss [2:17:50] the opposition stats or [2:17:50] feelings. [2:17:51] I'm here to speak for [2:17:51] the greater good of all [2:17:52] the people. [2:17:54] We have 5000 homes sitting [2:17:55] unoccupied. [2:17:58] The way I see it, there's 5000 [2:17:59] opportunities for people to [2:17:59] give their families a better [2:18:00] quality of life. [2:18:03] That's 5000 opportunities for [2:18:03] people to have a roof over [2:18:04] their head. [2:18:06] That's 5000 opportunities for [2:18:07] kids to have access to a [2:18:07] quality education. [2:18:11] That's 5000 opportunities for a [2:18:11] kid to grow up in a healthy [2:18:15] home and strive for success. [2:18:16] I grew up in a two bedroom [2:18:17] apartment with seven plus [2:18:20] people for most of my life. [2:18:21] If we live in a true democracy [2:18:21] we have to end the hypocrisy of [2:18:25] elected officials and community [2:18:25] members knowing the issues that [2:18:29] need to be fixed. [2:18:30] >> Thank you Zach. [2:18:31] Good afternoon. [2:18:35] I'm here on behalf of staff to [2:18:36] support the proposed empty [2:18:36] homes tax. [2:18:37] I want to thank council member [2:18:40] Ella Rivera and the Rules [2:18:40] Committee for moving this item [2:18:41] forward. [2:18:41] At the end of the day what [2:18:42] the people we serve need [2:18:44] the most is affordable housing. [2:18:45] This proposed tax could create [2:18:45] that by opening up [2:18:49] underutilized housing stock and [2:18:50] by bringing in some much needed [2:18:51] additional revenue to build new [2:18:51] units. [2:18:55] While this proposal won't solve [2:18:55] homelessness on its own, every [2:18:56] single unit of housing stock [2:19:00] that would come online due to [2:19:01] this tax would meaningfully [2:19:01] impact our efforts to combat [2:19:02] this trend and make [2:19:05] homelessness more rare. [2:19:05] Brief and non. [2:19:06] We urge you to support this [2:19:07] proposal to create more homes [2:19:09] for San Diegans. [2:19:10] >> Thank you. [2:19:10] Public advocate Shane Harris [2:19:14] You have people sitting you [2:19:15] time they can please raise [2:19:15] their hand. [2:19:19] Frank took a ton of Frank Thank [2:19:19] you. [2:19:20] And then Ina Weitzman thank you [2:19:21] so much. [2:19:24] You'll have three minutes. [2:19:24] >> Please proceed. [2:19:25] Thank you. [2:19:25] Good afternoon. [2:19:26] Council PRESIDENT And members [2:19:29] of the City Council I'm San [2:19:29] Diego public advocate Shane [2:19:30] Harris. [2:19:30] I was born and raised here. [2:19:34] I lost both of my parents at a [2:19:34] young age and age out of [2:19:35] the San Diego foster care [2:19:37] system at 18 and went homeless. [2:19:38] When you leave foster care you [2:19:43] don't inherit property savings [2:19:43] or a safety net. [2:19:44] You're trying to build [2:19:47] stability from nothing building [2:19:48] something from nothing is [2:19:49] something I understand. [2:19:52] And some of the 5000 homeowners [2:19:53] second homeowners come from [2:19:53] that background to that [2:19:57] experience shaped how I view [2:19:58] housing and building yourself [2:19:59] up from the ground. [2:20:03] Housing is not just policy to [2:20:03] me. [2:20:04] It is a security. [2:20:08] It is dignity and foundation [2:20:08] for opportunity. [2:20:09] I support housing but I still [2:20:12] support smart, smart housing [2:20:13] build through collaboration [2:20:13] with neighborhoods, builders [2:20:14] and stakeholders. [2:20:17] But I cannot support this [2:20:18] proposal as written today. [2:20:19] My primary concern is simple If [2:20:22] this measure passes the revenue [2:20:23] does not go into a protected [2:20:23] housing fund. [2:20:24] It goes into the city's general [2:20:28] fund the same fund facing a [2:20:33] $121 million deficit and total [2:20:34] mistrust from the voters. [2:20:34] If this was truly about [2:20:37] housing, the dollars would be [2:20:38] locked into housing dedicated [2:20:39] to building units and [2:20:43] increasing affordability. [2:20:44] Instead the revenue becomes [2:20:45] general revenue and we've seen [2:20:48] where that goes. [2:20:49] That raises serious questions [2:20:49] for me. [2:20:50] This is about housing policy or [2:20:54] is this about plugging a budget [2:20:54] hole? [2:20:55] I'd say a budget hole before [2:20:58] asking homeowners second [2:20:59] homeowners to pay more. [2:21:00] We should take a serious look [2:21:04] internally the city has and not [2:21:05] fully examined the bloated [2:21:05] middle management layers or [2:21:09] whether consolidate adding [2:21:10] the city's media department [2:21:11] into the mayor's office where [2:21:11] it already is working anyway [2:21:14] Could save us somewhere between [2:21:15] 1.5 million and $3 million [2:21:15] annually. [2:21:19] Those savings could go into [2:21:20] parks, roads, infrastructure [2:21:21] without imposing another tax. [2:21:25] We should exhaust internal [2:21:26] efficiencies before creating [2:21:26] external burdens and we should [2:21:31] stop framing second homes as if [2:21:32] they automatically mean wealthy [2:21:32] spectators. [2:21:35] I met families in District four [2:21:36] in District eight who bought [2:21:36] modest homes in the 1990s. [2:21:40] Today on paper those homes [2:21:40] appreciated. [2:21:41] That does not make them rich. [2:21:41] That makes them long term [2:21:45] homeowners. [2:21:46] I met families in District nine [2:21:46] who inherited a small house [2:21:50] from their parents. [2:21:51] It is not a luxury estate. [2:21:52] It's not a it's a legacy home. [2:21:52] The first generational [2:21:56] stability their family ever [2:21:56] had. [2:21:57] Does that make them villains? [2:21:58] Many second properties are [2:22:01] inherited homes and probate [2:22:02] modest condos purchased decades [2:22:03] ago or small properties owned [2:22:06] by retirees relying on rental [2:22:07] income. [2:22:07] These are not hedge funds. [2:22:11] These are families. [2:22:12] And this vacancy tax would be [2:22:13] layered on top of overwhelming [2:22:16] property taxes and one of [2:22:17] the most expensive housing [2:22:18] markets might I add property [2:22:18] taxes in the country. [2:22:22] If we're serious about solving [2:22:22] the House housing budget [2:22:27] crisis, this is not the route. [2:22:28] >> Please say no to this [2:22:28] erroneous tax measure. [2:22:32] Karen, if you can please come [2:22:32] forward. [2:22:36] Hello Karen Aid. [2:22:37] Tax revenue from this proposal [2:22:38] as noted that it MAY not shall [2:22:42] go to a general fund for [2:22:43] specific specifically related [2:22:43] to housing. [2:22:47] Therefore this is an arbitrary [2:22:48] tax to be used to fund anything [2:22:49] from the general fund. [2:22:49] It is a money grab tax. [2:22:53] Owners of second homes have no [2:22:53] obligation to subsidize other [2:22:54] San Diego for their housing. [2:22:58] They pay property taxes on [2:22:59] their properties like everyone [2:22:59] else. [2:23:00] The people that own these [2:23:04] properties successfully made [2:23:04] good financial decisions to [2:23:05] purchase and maintain these [2:23:06] properties for their own [2:23:09] enjoyment not for the benefit [2:23:10] of everyone else. [2:23:10] If people in San Diego cannot [2:23:14] afford the local rental market [2:23:15] or purchase market of a [2:23:16] property they should likely [2:23:16] relocate somewhere else that is [2:23:19] financially responsible for [2:23:20] them to live a good quality of [2:23:21] life and not expect to be [2:23:25] subsidized by others or expect [2:23:25] a handout by others. [2:23:26] This proposal is an arbitrary [2:23:31] and discriminatory tax on [2:23:32] select group of less than 1% of [2:23:32] the homeowners. [2:23:33] This proposal is in violation [2:23:36] of the California Constitution [2:23:37] which allows for the right to [2:23:37] thank you. [2:23:45] >> Thank you, Bruce. [2:23:46] No first Karen. [2:23:50] Next is Christopher. [2:23:50] >> Good afternoon, council [2:23:51] members. [2:23:56] My name is Christopher Gomes [2:23:57] and I'm an organizer with [2:23:58] the San Diego Organized Labor [2:23:58] Council. [2:23:59] I want to thank Councilmember [2:24:01] Yellow Rivera and his staff [2:24:02] along with city staff for their [2:24:02] hard work on this item. [2:24:06] You know, at the Labor Council [2:24:07] we represent over 130 unions [2:24:08] and 200,000 working families [2:24:11] across the county who don't [2:24:12] want to move out of the county. [2:24:13] Many of these folks are feeling [2:24:14] the impacts of the growing [2:24:18] economic uncertainty in [2:24:19] the country and the crushing [2:24:19] cost of housing in the city [2:24:20] which is only made worse by our [2:24:24] stock of homes that sit empty. [2:24:25] Well, there are San Diegans [2:24:25] living on the street with this [2:24:29] federal administration showing [2:24:29] zero interest in addressing [2:24:30] the needs of the working class. [2:24:31] It is incumbent on local [2:24:34] government to do everything in [2:24:35] their power to relieve some of [2:24:36] that pressure to be bold, to [2:24:36] put forth policy and to [2:24:40] compromise when necessary in [2:24:41] order to make the city more [2:24:42] livable for the working folks [2:24:42] who keep it running. [2:24:47] We urge our support in this [2:24:47] item. [2:24:48] Let's move to the ballot. [2:24:49] San Diego San Diego is going to [2:24:49] have a say on the matter. [2:24:50] Thank you. [2:24:53] >> Thank you. [2:24:59] Next is Ethan. [2:24:59] >> Yes you do. [2:25:00] Once you walk up into your city [2:25:03] time by and that please raise [2:25:04] your hand. [2:25:04] And Aaron or diversity. [2:25:07] And before I thank thank you [2:25:08] You'll have three minutes [2:25:08] please. [2:25:09] No you have four minutes. [2:25:09] Please proceed. [2:25:10] Thank you. [2:25:13] Good afternoon, Council. [2:25:14] My name is Natalia Civic [2:25:14] engagement director with [2:25:18] Alliance and Diego and resident [2:25:19] of Golden Hill in Council [2:25:19] District. [2:25:22] I called San Diego my home for [2:25:22] over 26 years. [2:25:23] And my experience in the city [2:25:24] has always been that of a [2:25:24] renter. [2:25:28] I arrived here in 1999 and at [2:25:29] that time my family of five [2:25:33] shared a small room and a three [2:25:33] bedroom apartment that housed [2:25:34] at least five per room and a [2:25:35] few others in the living room. [2:25:39] My childhood memories are [2:25:40] filled with a full house in [2:25:40] the heart for smiles of working [2:25:41] people. [2:25:44] After a few years of working [2:25:45] two jobs, my mom and Helen [2:25:46] saved enough to get us into our [2:25:48] own apartment just the five of [2:25:48] us. [2:25:49] That was probably about 25 And [2:25:53] I remember the rent bill was [2:25:54] about $1,200 for a spacious [2:25:55] three bedroom apartment that [2:25:55] allowed my siblings and I [2:25:59] the personal space that we [2:25:59] always wanted. [2:26:00] >> Things were good for a [2:26:00] while. [2:26:01] However, as time went on my mom [2:26:05] didn't want wages, didn't keep [2:26:05] up with the rising rent cost [2:26:06] and the cost of living. [2:26:07] And we were fortunate to stay [2:26:10] with family to keep up with [2:26:10] the rising rents. [2:26:14] But between the ages of 16 to [2:26:15] 19 since we could only afford a [2:26:16] two bedroom apartment at $1,600 [2:26:16] I slept on the living room [2:26:20] couch. [2:26:21] >> Fast forward 12 years and my [2:26:25] husband and I pay $2,250 [2:26:26] monthly for a one bedroom and [2:26:29] we have no option but to stay [2:26:30] in our 500 square foot unit [2:26:31] until we can afford to buy [2:26:35] which we know is not anytime [2:26:35] soon. [2:26:36] And that directly impacts our [2:26:36] ability to grow our family. [2:26:41] We are both first generation [2:26:41] graduates of San Diego State [2:26:42] University actually the first [2:26:46] in our families to cross many [2:26:46] milestones And yet [2:26:47] the possibility the possibility [2:26:48] of buying a home in a city that [2:26:51] raised does educated us and [2:26:52] shaped our commitment to [2:26:52] community feels more and more [2:26:57] out of our reach. [2:26:57] And unfortunately our story is [2:26:58] not unique. [2:26:58] It echoes across neighborhoods [2:26:59] with young families doubling up [2:27:03] in tiny apartments with our [2:27:04] elders watching their children [2:27:04] move away to more affordable [2:27:09] cities and with essential [2:27:09] workers commuting long hours [2:27:10] because they cannot afford to [2:27:11] live where they serve. [2:27:17] While thousands struggle to [2:27:18] find stable housing, homeless [2:27:18] homes here sit vacant, they are [2:27:21] treated as mere investment [2:27:21] vehicles rather than places for [2:27:22] people to live. [2:27:22] Today in history today is [2:27:23] history in the making and I am [2:27:27] grateful for the opportunity to [2:27:28] push San Diego into a better [2:27:28] direction one that just makes [2:27:29] sense. [2:27:33] Today's vote will have a direct [2:27:33] impact on my life And in [2:27:34] the more than 5100 homes left [2:27:38] vacant in the city were put up [2:27:39] for sale. [2:27:39] My husband and I might actually [2:27:40] have a shot at making San Diego [2:27:43] forever home three times [2:27:44] the chances we have now. [2:27:45] And if these homes are put back [2:27:49] on the market for rent then you [2:27:49] can have more homes to choose [2:27:50] from that make better sense for [2:27:51] their commute, their careers [2:27:54] and their communities. [2:27:55] Both of these options help San [2:27:56] Diego significantly increase [2:27:57] the housing supply and drive [2:27:57] the costs down. [2:28:02] This is a win win in Alliance [2:28:02] and Diego. [2:28:02] We are a human rights [2:28:03] organization building community [2:28:04] power to bring human rights [2:28:06] home. [2:28:07] We stand a strong support of [2:28:08] the empty homes tax because we [2:28:09] are invested in real solutions [2:28:13] And we we stand strong today [2:28:14] with community based and fair [2:28:14] housing organizations, labor [2:28:18] unions and everyday San Diego [2:28:19] and that are just looking for a [2:28:20] chance to keep calling San [2:28:20] Diego our home. [2:28:25] We urge that we urge you all to [2:28:25] vote yes and move forward. [2:28:26] The empty homes are so that [2:28:30] voters can have a say and make [2:28:30] that final decision. [2:28:31] Thank you for your time. [2:28:32] Thank you, Patricia. [2:28:32] Another one. [2:28:37] Thank you. [2:28:38] Have time to go to my audience. [2:28:38] Thank you so much. [2:28:39] You have two minutes. [2:28:43] Please proceed. [2:28:43] Good afternoon, everyone. [2:28:44] Day three Resident I'm here in [2:28:48] support of attacks on second [2:28:49] beget homes owned by wealthy [2:28:49] investors and corporations. [2:28:50] San Diego and North Park have [2:28:54] been my home since 1969. [2:28:55] Like many longtime residents, [2:28:55] I'm still struggling to afford [2:29:00] a home to stay in the city I [2:29:00] love and retire here. [2:29:01] I don't want to work for [2:29:02] the rest of my life just to [2:29:06] rent and build wealth for [2:29:06] someone who MAY already be a [2:29:07] billionaire. [2:29:11] The cost of moving rising rent [2:29:12] and wages that haven't kept up [2:29:13] with the cost of living make [2:29:13] that unsustainable. [2:29:18] I wasn't able to buy earlier [2:29:19] because of student loan debt. [2:29:20] But year after year I watched [2:29:23] prices rise beyond what working [2:29:24] for and against could afford. [2:29:25] Even when families qualified [2:29:30] they were often outbid. [2:29:30] Working in real estate, I [2:29:31] routinely saw speculators beat [2:29:35] out local families with all [2:29:35] cash offers. [2:29:36] When our neighbor passed away, [2:29:41] an investor bought the house [2:29:42] next to my parents in North [2:29:42] Park. [2:29:43] They left it vacant for over [2:29:48] five years while its value more [2:29:48] than doubled. [2:29:53] It went from 464,000 to 940,000 [2:29:53] 940,000. [2:29:58] That's a 103% increase on a two [2:30:03] bedroom one bath cottage. [2:30:03] No housing was created. [2:30:04] No family was helped. [2:30:09] Profit was the only gold. [2:30:09] Corporations and wealthy [2:30:10] investors have purchased [2:30:11] thousands of homes in our city [2:30:15] and left many empty. [2:30:16] These vacant homes titans [2:30:16] supply and drive up prices and [2:30:17] erode the community. [2:30:21] How we should not be for people [2:30:22] who live at home should be for [2:30:23] people who live and work here [2:30:26] Not for corporations to [2:30:27] warehouse wealth. [2:30:28] As you have already today you [2:30:33] will hear fearmongering and [2:30:34] disinformation from those who [2:30:34] profit from keeping housing out [2:30:35] of reach for working San Diego. [2:30:40] Please vote yes and let [2:30:40] the voters decide. [2:30:41] Thank you. [2:30:41] Thank you. [2:30:46] Hazardous materials. [2:30:47] Those materials. [2:30:47] Yeah. [2:30:53] If I can ask the following [2:30:54] people to please come to [2:30:55] the front row Jesse Schmidt. [2:30:55] Anna Ramos. [2:30:56] Gene Kelly. [2:30:59] Florence, Steve Russell, Karen [2:31:00] Barton and Robert. [2:31:04] Come on it If you can all [2:31:04] please come forward and you'll [2:31:05] have one minute. [2:31:05] >> Please proceed. [2:31:06] Good afternoon. [2:31:10] My name is Martin Munoz. [2:31:11] I am a community organizing [2:31:12] coordinator with the Chicano [2:31:15] Federation, a member of [2:31:16] the Community Budget Alliance [2:31:17] and a resident of District [2:31:17] eight. [2:31:17] For the past three years we [2:31:18] have been faced with a budget [2:31:21] deficit which has [2:31:22] disproportionately affected San [2:31:23] Diego's most marginalized and [2:31:24] disenfranchized communities. [2:31:27] But this proposal could allow [2:31:28] us to bring in a substantial [2:31:29] amount of revenue to continue [2:31:29] funding the services that our [2:31:33] communities rely on. [2:31:34] Furthermore, this proposal will [2:31:35] allow individuals like myself [2:31:39] to remain in San Diego. [2:31:40] To the contrary and we will [2:31:40] continue to continue down [2:31:41] the path of becoming a city [2:31:44] which does not cater to [2:31:45] the working class like myself. [2:31:45] On behalf of the Chicano [2:31:46] Federation we urge you to vote [2:31:51] in favor of this item to uphold [2:31:52] our community's democratic [2:31:52] values and to empower our [2:31:53] residents to exercise their [2:31:55] right to vote for their values [2:31:55] . [2:32:01] Thank you Jesse. [2:32:02] >> Good afternoon. [2:32:06] Council Jesse Schmidt, District [2:32:07] eight resident here today in [2:32:08] full support of the second home [2:32:08] stacks. [2:32:09] Growing up in San Diego, my [2:32:12] family had anything but a [2:32:13] stable housing situation. [2:32:14] My mother often worked two and [2:32:14] sometimes three jobs just to [2:32:19] make sure that she had [2:32:19] the means to provide for my [2:32:20] sister and I from growing up [2:32:21] and living inside a friend's [2:32:24] houses to sleeping in freezing [2:32:25] cold garages and on [2:32:25] the couches. [2:32:26] These challenges resonate [2:32:27] deeply with the community [2:32:30] behind me here today. [2:32:31] Last week we heard a public [2:32:32] comment to say Stop being poor. [2:32:32] Let me ask you a question Do [2:32:36] you tell that to the hands of [2:32:37] farmworkers that put food on [2:32:37] your table? [2:32:38] Do you say that to the military [2:32:42] families struggling to make it [2:32:43] here in San Diego willing their [2:32:44] life down for your greed? [2:32:44] Or the teachers barely making [2:32:47] it by just to make sure that [2:32:48] your child has a bright future [2:32:49] because that is who we are. [2:32:49] Let me be abundantly clear [2:32:54] Poverty is not a moral failure [2:32:54] . [2:32:55] It is a policy failure. [2:32:56] If we're going to turn slogans [2:32:56] around, here's three that [2:32:57] actually work. [2:33:01] Tax the rich invest in San [2:33:01] Diego and build more housing. [2:33:02] >> Thank you Council member Eli [2:33:03] Rivera for your work on this. [2:33:09] Thank you, Anna Ramos. [2:33:10] >> Good afternoon council [2:33:10] members. [2:33:11] My name is and Ramos, a [2:33:15] community organizer with [2:33:15] the Alliance of Californians [2:33:16] for Community Empowerment. [2:33:17] And although I don't live in [2:33:21] the city of San Diego, I've [2:33:22] been organizing in District [2:33:23] eight for some months now And [2:33:27] in doing so have helped [2:33:27] the community form the first [2:33:28] ever East chapter in San Isidro [2:33:29] with the goal of coming [2:33:33] together as a group of [2:33:34] neighbors who care deeply about [2:33:34] improving their community and [2:33:39] improving the quality of life [2:33:39] of everyone there. [2:33:40] They have been meeting for [2:33:40] months talking about the issues [2:33:44] their community faces and at [2:33:45] the top of the list is of [2:33:45] course housing affordability. [2:33:46] We have members who have shared [2:33:51] their struggles having to live [2:33:52] with six people in a one [2:33:52] bedroom apartment because that [2:33:53] is the only thing that they can [2:33:56] ever afford. [2:33:57] There are folks living in [2:33:58] mobile home parks who dream of [2:33:59] one day being able to afford a [2:34:03] home but that has become almost [2:34:03] impossible. [2:34:04] So on their behalf we strongly [2:34:09] support this empty home tax. [2:34:10] San Diegans really need this [2:34:11] housing crisis to be addressed [2:34:11] as soon as possible. [2:34:15] Thank you for that Concluding [2:34:15] remark. [2:34:16] >> It's only the second row for [2:34:20] people to find out It's [2:34:21] important for the people you [2:34:21] lay in the back. [2:34:22] That's cool. [2:34:22] There's nobody behind you But [2:34:26] it's important that [2:34:27] the audience can actually see [2:34:28] the speaker or actually see [2:34:28] the reaction of the council [2:34:29] members. [2:34:29] So thank you very much. [2:34:31] No worries. [2:34:32] Thank you. [2:34:37] If you can please come up. [2:34:38] >> Hello, my name is d. [2:34:39] I'm a resident of District nine [2:34:39] and I'm here in favor of [2:34:40] the empty home tax. [2:34:44] Again, I'd like to personally [2:34:45] thank you Better for [2:34:45] prioritizing people over [2:34:46] property. [2:34:49] It's imperative that we keep [2:34:50] the San Diego for the families [2:34:50] that have built it and we [2:34:51] should forget that black and [2:34:55] brown owners were barred from [2:34:56] owning homes in the La Hoya and [2:34:56] expensive districts just until [2:34:57] recently. [2:35:01] These people that own multiple [2:35:01] homes were benefiting from [2:35:02] systematic racism and white [2:35:02] privilege. [2:35:06] Yet the families that have been [2:35:07] here for generations shaping [2:35:07] the culture and character of [2:35:08] the city by focusing on their [2:35:13] neighbors were reinvesting in [2:35:13] the stability of their [2:35:14] communities which will yield in [2:35:15] a stronger district and a more [2:35:19] sustained local economy. [2:35:19] Keeping vacant homes does [2:35:20] the opposite. [2:35:20] It contributes to nothing. [2:35:21] It doesn't support the local [2:35:21] tax base. [2:35:25] It doesn't fill the seats in [2:35:26] the schools and it certainly [2:35:27] doesn't contribute to [2:35:27] community. [2:35:28] It's a depletion of the city's [2:35:32] vitality and we hope to see you [2:35:32] pass this and thank you again [2:35:33] Shanita rivera Thank you, [2:35:37] Kaylee. [2:35:37] >> Hello council members. [2:35:43] My name is Keeley Hawes and I'm [2:35:44] here today as a member of [2:35:45] the Alliance of Californians [2:35:45] for Community Empowerment to [2:35:49] show my support to put [2:35:49] the empty home tax on [2:35:50] the ballot. [2:35:50] Although I am not a resident of [2:35:55] San Diego, I do work three jobs [2:35:56] in the city and yet I cannot [2:36:01] afford to live in the city of [2:36:01] San Diego where I spend most of [2:36:02] my time, most of my commute and [2:36:06] all of my money. [2:36:07] I move to San Diego because I [2:36:08] was originally pushed out of my [2:36:08] hometown and community because [2:36:12] of housing affordability and I [2:36:13] could no longer afford to live [2:36:18] there and I fear that that is [2:36:19] the direction Sanyo was headed [2:36:24] in If we do not make a change [2:36:25] with this empty home tax to be [2:36:25] put on the ballot we will be [2:36:26] taking a step in the right [2:36:30] direction to a more affordable [2:36:30] city so that the people who [2:36:31] work in this beautiful city MAY [2:36:32] continue to live and grow in a [2:36:36] place where we are proud to [2:36:36] call home. [2:36:37] And I've dreamed of living in [2:36:37] the city. [2:36:43] Don't make me change that [2:36:43] dream. [2:36:43] Thank you. [2:36:44] Thank you. [2:36:44] Steve Russell. [2:36:45] Steve Russell You have time to [2:36:49] give to you by Juliet Ornelas. [2:36:49] Thank you. [2:36:50] You'll have two minutes please. [2:36:50] Thank you. [2:36:54] Well, good afternoon. [2:36:55] Honorable Council PRESIDENT [2:36:55] Council members I'm Steven [2:36:56] Russell, PRESIDENT And ceo of [2:36:57] the San Diego Housing [2:37:00] Federation and the Federation. [2:37:01] We believe that everyone has [2:37:01] the right to have [2:37:06] the opportunity for safe and [2:37:07] affordable home safe and [2:37:07] affordable place to live [2:37:08] because all other social goods [2:37:09] come from having a stable home [2:37:13] environment. [2:37:13] We do know how housing crises [2:37:14] develop. [2:37:14] It's there's a very good [2:37:18] scholarship on this. [2:37:19] There's a simple formula [2:37:19] basically create a lot of high [2:37:20] wage jobs and then don't build [2:37:21] the housing to house those [2:37:21] workers. [2:37:25] What will happen with [2:37:25] resources? [2:37:26] We'll find homes most typically [2:37:26] homes that were previously [2:37:31] rented or owned by poor folks [2:37:31] And that is a downward ladder [2:37:32] that reaches down to where we [2:37:36] have families who are being [2:37:37] forced out onto the streets. [2:37:37] They're doubling up, tripling [2:37:38] up or leaving the region. [2:37:43] So this dynamic is well [2:37:43] established in the supply and [2:37:44] demand patterns and constraints [2:37:45] in constrained housing markets [2:37:48] to be clear, there are multiple [2:37:48] strategies that are needed to [2:37:49] address the housing crisis. [2:37:50] One is expanding overall [2:37:54] housing production to help [2:37:55] increase availability and [2:37:55] alleviate price pressure and [2:37:56] the other is to increase [2:37:57] the availability of affordable [2:38:00] housing housing affordable to [2:38:00] the lowest income individuals [2:38:05] in our community and ensuring a [2:38:06] strategy to ensure that [2:38:07] existing homes are actively [2:38:07] used rather than sitting [2:38:07] unused. [2:38:12] This measure today which we [2:38:13] urge you to support focuses on [2:38:13] improving availability of a [2:38:14] portion of the existing housing [2:38:17] stock in a market where supply [2:38:18] is already limited and it also [2:38:19] creates the opportunity to have [2:38:19] new resources with which we can [2:38:23] develop new affordable homes. [2:38:24] The majority of properties are [2:38:25] such as primary residences [2:38:30] simply won't be affected. [2:38:30] And it's important to remember [2:38:31] though that a house is not a [2:38:32] home if no one's living there. [2:38:36] So we urge you to support [2:38:36] the action before it today and [2:38:37] give the voters the opportunity [2:38:38] to vote on this issue. [2:38:40] Thank you for your time and [2:38:41] attention today, Karen. [2:38:46] All right. [2:38:47] Hello council members. [2:38:51] I'm Karen Barton and I live in [2:38:51] District two. [2:38:52] I'm representing my neighbor [2:38:56] today who's at work. [2:38:57] She owns two homes on the same [2:38:57] neighborhood. [2:39:03] She's got three kids at home [2:39:03] and her husband travels a lot. [2:39:04] They work hard and have little [2:39:05] time for themselves. [2:39:09] Her parents come into town [2:39:10] twice monthly to care for [2:39:10] the little ones. [2:39:11] They trade off with other [2:39:15] grandparents. [2:39:15] One week on, one week off she [2:39:20] uses that second home 120 days [2:39:20] per year. [2:39:21] Is this a family you deem too [2:39:26] rich or in need of double [2:39:26] taxation? [2:39:26] I don't think so. [2:39:27] They have come up with a [2:39:31] creative solution to use family [2:39:32] to provide care instead of [2:39:32] socking away savings for their [2:39:33] own retirement or college. [2:39:37] They're investing in their [2:39:37] family. [2:39:38] They want a second home, a [2:39:38] modest condo providing a place [2:39:43] to live for their parents to [2:39:44] help raise children. [2:39:44] Please vote no on this [2:39:45] initiative. [2:39:47] Thanks for your time. [2:39:55] >> Robert. [2:39:55] >> Yes. [2:39:55] I'm Bob Kevin. [2:39:56] As PRESIDENT Of the Senate [2:40:02] Association Realtors [2:40:02] representing 10,000 members. [2:40:05] Look, I would appreciate if I [2:40:05] could have three minutes. [2:40:06] >> I'm really sorry We have to [2:40:07] treat everybody exactly [2:40:07] the same. [2:40:08] Okay, fine. [2:40:11] Thank you. [2:40:12] We have submitted a formal [2:40:12] letter to you setting forth [2:40:13] some of the reasons why we're [2:40:17] against the proposed empty home [2:40:18] tax measure bill before us [2:40:18] today. [2:40:24] And I hope you come up with [2:40:24] the right conclusion. [2:40:25] Thank you very much. [2:40:25] Thank you. [2:40:26] If I could have the following [2:40:31] individuals please come up to [2:40:31] the other reserved seats and up [2:40:32] to the microphone Daryl Cotton, [2:40:33] Nicole Lilly and Rohana [2:40:41] Hariharan. [2:40:45] R White Barry As a last name [2:40:45] Brenda Lindstrom, Shane [2:40:51] Pendergrass and Brian Broad and [2:40:52] Mary Burke. [2:40:52] If you can all please come up [2:40:53] to the first room. [2:40:53] Please proceed already. [2:40:57] Good afternoon Counsel. [2:40:57] My name is Darryl Cotton and I [2:40:58] am a 45 year resident of [2:40:59] the city of San Diego And I am [2:41:03] here because what I've got to [2:41:04] tell this council is I don't [2:41:04] think we really have a budget [2:41:05] problem as much as we have a [2:41:09] collection problem. [2:41:09] And although we should [2:41:10] incentivize people getting into [2:41:11] homes, I believe there are [2:41:15] other ways to do it If we can [2:41:16] take care of the budget. [2:41:16] The deep hole that we've dug [2:41:21] here in this city and what I've [2:41:21] come to find is that there are [2:41:22] millions of dollars in cannabis [2:41:23] tax revenues in the cannabis [2:41:28] business tax that aren't being [2:41:29] paid And I have evidence of [2:41:30] that of two public records that [2:41:30] try to get that information [2:41:33] from the city. [2:41:34] They won't give it to me. [2:41:35] So I finally file a petition of [2:41:35] mandamus to get the city to [2:41:40] give me that record and they [2:41:40] won't. [2:41:41] The city attorney tells me they [2:41:42] won't give it to them either. [2:41:42] So I have a document here and [2:41:46] put it on the council that's [2:41:46] willing to see it should [2:41:47] because if we can pick up just [2:41:48] budget shortfalls we don't have [2:41:51] to tax parking and we don't [2:41:52] have to pick up the housing [2:41:58] crisis by burdening owners. [2:41:59] >> That shouldn't affect them. [2:41:59] Thank you for the concluding [2:42:00] sentence Nicole. [2:42:01] You have time to get it to you [2:42:04] by sparking me To think that [2:42:05] Sparky was she wasn't sure [2:42:10] somebody was clapping or [2:42:11] raising your hand. [2:42:11] Okay? [2:42:12] You were raising your hand. [2:42:15] Thank you. [2:42:15] Yeah. [2:42:16] Okay, so you have two minutes. [2:42:17] Thank you. [2:42:17] Hello. [2:42:21] My name is Nicole Lilly. [2:42:22] >> I'm a 23 year old renter [2:42:23] resident of District three and [2:42:24] executive director of our Time [2:42:27] to Act where at youth led [2:42:28] nonprofit organizing Powerful [2:42:28] Youth for Housing justice. [2:42:29] I'm here today again to urge [2:42:34] you to vote for housing justice [2:42:35] Every day San Diego boys are [2:42:35] struggling to survive in [2:42:36] the city a majority of you [2:42:39] against our renters and [2:42:40] the majority of renters are [2:42:41] paying more than 30% of their [2:42:41] income on housing alone. [2:42:45] This is an unaccepted and [2:42:46] avoidable reality. [2:42:47] This is the result of treating [2:42:47] housing as an investment and [2:42:52] profit gouging tools rather [2:42:52] than the human right. [2:42:53] But it is as more of our [2:42:54] neighbors are thrown into house [2:42:57] lessness and housing insecurity [2:42:58] every day as we continue to [2:42:59] fall woefully short on our [2:42:59] housing development goals as we [2:43:04] face devastating cuts to [2:43:04] essential services due to [2:43:05] growing budget shortages. [2:43:09] It is inexplicable to me why we [2:43:10] should allow over 5000 homes to [2:43:10] sit entirely empty without [2:43:11] consequence. [2:43:15] I want to live in a city that [2:43:15] prioritizes its people not [2:43:16] property and profit whether it [2:43:20] creates revenue or puts these [2:43:21] homes back into the hands of [2:43:21] San Diegans. [2:43:22] Your vote on this item tells us [2:43:27] how you see housing. [2:43:27] Do you believe housing is a [2:43:28] tool for profit or a human [2:43:29] right for your constituents? [2:43:32] I urge this council to pass [2:43:33] this item and bring this [2:43:33] decision to the people. [2:43:34] And finally, I'd like to speak [2:43:38] to my fellow neighbors which [2:43:39] you all are as well owners of [2:43:40] second homes who allow them to [2:43:44] sit empty while the rest of us [2:43:45] struggle to survive in the city [2:43:45] are not victims. [2:43:46] The people who are struggling [2:43:50] every day to pay your rent and [2:43:51] to work and support the needs [2:43:51] of the city need you to support [2:43:52] them. [2:43:57] We are human beings. [2:43:57] Renters are human beings and [2:43:58] this is not them being [2:43:58] victimized. [2:44:02] This is not them subsidizing [2:44:03] their fellow neighbor. [2:44:03] This isn't paying their fair [2:44:04] share. [2:44:04] This is only a first step and [2:44:05] this deserves to go to [2:44:09] the people. [2:44:09] >> I appreciate your time [2:44:10] today. [2:44:10] Thank you. [2:44:16] Thank you everyone. [2:44:17] Oh, my name is Dan and I look [2:44:20] at our contract alongside being [2:44:21] a student at ucsd. [2:44:21] I come here on behalf of all my [2:44:22] friends and many students all [2:44:27] of whom have who have not had [2:44:28] an easy journey with finding [2:44:28] off campus housing and who wish [2:44:29] they could be here but have to [2:44:33] prioritize their classes [2:44:34] instead. [2:44:34] This policy will affect over [2:44:35] 5000 homes homes that would [2:44:39] students of that house families [2:44:39] Even by conservative numbers [2:44:40] This could lead to housing [2:44:41] thousands of families and [2:44:44] students and if not the city [2:44:45] can use the revenue from [2:44:46] the tax to help fund our most [2:44:46] basic needs and improve San [2:44:50] Diegans lives. [2:44:51] Youth are struggling with [2:44:51] housing. [2:44:52] We need you to help us. [2:44:52] This is a step in the right [2:44:58] direction and you can show us [2:44:58] that you care about us by [2:44:59] taking this step Those who own [2:45:00] multiple homes while the rest [2:45:02] of us struggle to survive are [2:45:03] not victims for being asked to [2:45:03] pay their fair share. [2:45:04] I hope everyone understands [2:45:08] the urgency of this. [2:45:08] Thank you. [2:45:15] Thank you very or very Hello [2:45:15] Council. [2:45:16] My name is Kristen Berry. [2:45:17] I'm here with you as well to [2:45:20] speak in support of the empty [2:45:21] home tax going to the ballot. [2:45:21] As someone who has spent many [2:45:22] nights searching for a roof [2:45:26] over my head at many points in [2:45:27] my life, housing should be a [2:45:28] fundamental right for all and [2:45:28] not an opportunity for profit [2:45:33] That does not seem to be [2:45:34] the case currently in the city [2:45:34] of San Diego though as we see [2:45:35] the hoarding of empty [2:45:35] properties by the very wealthy [2:45:38] leaving both city and revenue [2:45:39] leaving both city revenue and [2:45:40] unhoused individuals by [2:45:40] the wayside, we must rectify [2:45:45] this greed that is costing San [2:45:46] Diego stability, dignity and [2:45:47] the right to a home. [2:45:50] The home taxes a crucial step [2:45:51] towards housing justice in San [2:45:51] Diego. [2:45:52] It is a great method for us to [2:45:52] generate necessary revenue to [2:45:57] address our budget deficit [2:45:57] without burdening us [2:45:58] the people. [2:45:58] The less about the deficit [2:45:59] the city finds itself into less [2:45:59] of a burden. [2:46:02] There is on programs and [2:46:02] services that youth and [2:46:03] families of San Diego happily [2:46:03] rely on. [2:46:04] It is important that this [2:46:07] decision will ultimately be [2:46:08] made by the people of San [2:46:08] Diego. [2:46:09] You are allowing the process of [2:46:10] democratic decision rather than [2:46:14] impeding it. [2:46:14] >> Please vote yes today to [2:46:15] move the home tax ballot to [2:46:16] the ballot. [2:46:21] Thank you Britta where do you [2:46:22] have people sitting your time [2:46:22] if they can please raise their [2:46:25] hand joyfully and thank you. [2:46:33] And Elizabeth Kelly, thank you [2:46:33] so much. [2:46:34] You'll have three minutes. [2:46:34] Please proceed. [2:46:34] Great. [2:46:35] Hello council members. [2:46:38] I am in opposition to fiber one [2:46:39] I would like to focus on [2:46:39] the legal and operational [2:46:44] realities of implementing a [2:46:44] vacancy based tax. [2:46:45] First of all, how do you [2:46:50] identify the vacancy? [2:46:50] Is it utility usage thresholds [2:46:55] self-reporting, physical [2:46:56] inspection which presents legal [2:46:56] and privacy implications? [2:47:01] Second enforce ment in due [2:47:01] process. [2:47:02] Property owners must have clear [2:47:07] notice standards, appeal rights [2:47:07] and transparent evidentiary [2:47:08] requirements. [2:47:12] Ambiguous definitions increase [2:47:13] rate disputes and legal [2:47:13] exposures. [2:47:18] Third administrative costs. [2:47:19] These systems typically require [2:47:20] compliance tracking databases, [2:47:25] verifications staff audit [2:47:25] procedures, appeals processing [2:47:26] and legal defense capacity. [2:47:31] Also what is the actual [2:47:32] projected net revenue After all [2:47:37] these full implementation [2:47:37] costs? [2:47:38] I believe it's much lower than [2:47:39] projected. [2:47:42] Third excuse me for legal [2:47:43] exposure. [2:47:48] Targeting tax structures can [2:47:49] invite litigation on [2:47:49] constitutional, statutory or [2:47:50] procedural grounds. [2:47:55] Has the city fully assessed [2:47:55] the litigation risk and a long [2:48:00] term administrative burden? [2:48:01] Finally, scalability Once [2:48:02] created compliance systems tend [2:48:06] to expand over time. [2:48:07] This can grow into significant [2:48:08] regulatory structure and [2:48:08] financial nightmares. [2:48:13] So before even voting on [2:48:13] something like this there must [2:48:14] be the evidence of enforcement [2:48:18] methodology, privacy [2:48:19] safeguards, appeals framework, [2:48:20] administrative cost estimates [2:48:25] and net revenue projections and [2:48:26] measurable affordability [2:48:31] benchmarks. [2:48:31] Do not develop and implement [2:48:32] these processes after it's on [2:48:33] the ballot. [2:48:37] That without these processes in [2:48:38] place our money will once again [2:48:43] be spent without accountability [2:48:43] and without reaching your [2:48:44] stated objectives. [2:48:49] Please do not create more [2:48:50] chaos. [2:48:50] Do the right thing. [2:48:51] Do not advance this further. [2:48:52] Your constituents are watching [2:48:55] how you are voting but I would [2:48:56] like to just make an additional [2:48:57] comment and that is I [2:49:01] completely empathize with [2:49:02] the people here who are saying [2:49:03] they cannot afford housing. [2:49:07] Their work their hard workers [2:49:08] are smart, They're dedicated. [2:49:08] They cannot afford It makes no [2:49:13] sense to me that now being [2:49:14] built there are to use their [2:49:15] 450ft and they're going to be [2:49:18] gone for 1714 to $1700 a month. [2:49:19] Nobody can afford that. [2:49:25] This is not going to solve that [2:49:25] problem. [2:49:31] This is not the answer and it's [2:49:31] not going to. [2:49:31] It's going to fail in [2:49:31] the courts. [2:49:31] So please let's find an [2:49:31] accurate solution. [2:49:32] Let's stop this. [2:49:37] There's no way I can afford any [2:49:38] of this housing if I Thank you [2:49:38] for that concluding comment. [2:49:43] Shane Pendergrass and the woman [2:49:49] Shane in the audience. [2:49:49] Thank you for the opportunity [2:49:50] to speak to you today. [2:49:55] My husband and I bought our [2:49:55] condo here 13 years ago. [2:49:56] We have children and [2:49:56] grandchildren here. [2:50:02] We live in Maryland where I'm a [2:50:02] retired state legislator and [2:50:03] that's where we spend [2:50:07] the majority of our year. [2:50:08] We're here about 170 days a [2:50:08] year. [2:50:09] I get to be a part of my [2:50:13] grandchildren's lives here and [2:50:14] my grandchild's life back in [2:50:14] Maryland. [2:50:19] i'm very grateful for that. [2:50:19] We worked hard. [2:50:20] We both were government [2:50:20] employees. [2:50:25] We did not earn enormous [2:50:26] amounts of money and we spent a [2:50:26] lot of hours trying to do [2:50:27] the right thing just as you do. [2:50:31] I appreciate any consideration [2:50:32] you can give to people like me [2:50:37] who want to contribute to our [2:50:38] grandchildren and our [2:50:38] children's happiness and [2:50:39] growth. [2:50:47] Thank you Brian. [2:50:48] >> I am from District five and [2:50:49] I've made several changes to my [2:50:54] comments based on the opening [2:50:54] comments that were made. [2:50:55] The San Francisco case is [2:50:56] relevant to this measure [2:51:00] The same constitutional issues [2:51:01] apply and the Ellis Act [2:51:01] applies. [2:51:02] The Berkeley Property Owners [2:51:06] Association filed an amicus [2:51:06] brief opposing the San [2:51:07] Francisco measure. [2:51:08] They are watching the Court of [2:51:12] Appeal decision very closely [2:51:13] and the Court of Appeal agrees [2:51:14] with the Superior Court ruling. [2:51:17] They will undoubtedly sue [2:51:18] the city of Berkeley to [2:51:19] overturn the measure and they [2:51:19] are most likely be successful. [2:51:24] That being the case, don't move [2:51:25] forward on this measure until [2:51:25] litigation is settled. [2:51:29] Otherwise if it's found to be [2:51:30] illegal you'll have to refund [2:51:31] taxes collected. [2:51:31] Exhibit a The Trump Tariffs. [2:51:36] Remember that? [2:51:37] I love San Diego and I hate to [2:51:38] see it making mistake after [2:51:41] mistake one on one street to [2:51:41] trash and double park parking. [2:51:42] Today we have an opportunity to [2:51:47] prevent another mistake. [2:51:47] This measure is flawed and [2:51:48] legally dubious. [2:51:49] You can't vote away people's [2:51:49] constitutional rights with a [2:51:50] ballot. [2:51:50] Thank you for that concluding [2:51:51] remark. [2:51:56] >> Mary. [2:51:57] This measure is based on [2:52:02] the assumption that properties [2:52:02] that don't have a county [2:52:03] homeowner's exemption and are [2:52:03] not rented are empty. [2:52:08] However, some owners no longer [2:52:09] rent out a second home because [2:52:09] they maintain and use their [2:52:13] home to help not only immediate [2:52:14] family but also an aunt and [2:52:15] uncle and eastern half of your [2:52:15] cousin and even close friends [2:52:20] And they maintain and use a [2:52:21] second home themselves. [2:52:21] Examples include during times [2:52:22] of illness surgery, [2:52:25] rehabilitation through job [2:52:26] losses and other calamities [2:52:27] such as after the fires. [2:52:27] The amount of taxes and [2:52:33] substantial gated and arbitrary [2:52:33] and has been set to motivate [2:52:34] the rental or indeed sale of [2:52:34] properties. [2:52:38] The tax amount is unaffordable [2:52:38] and for some owners to have to [2:52:44] rent against their will or [2:52:44] force to sell their properties [2:52:45] against their will. [2:52:46] There hasn't been a study of [2:52:50] who this tax would affect. [2:52:51] The people we know who own a [2:52:51] second home are mostly between [2:52:52] the ages of 65 and 80. [2:52:56] Throwing seniors under the bus [2:52:57] when their properties have [2:52:57] already started changing hands [2:53:02] and will continue to change [2:53:02] hands Anyway. [2:53:03] Thank you for that Very cool [2:53:04] and unlawful Thank you for that [2:53:04] concluding comic. [2:53:08] Christina Christina Marie Green [2:53:09] if you can please come forward [2:53:10] after that will be Ted Womack. [2:53:15] Liliana Soriano, Claire Snyder. [2:53:15] Mike Frittelli. [2:53:16] And then Jason Lopez. [2:53:18] If you can all please come [2:53:21] forward. [2:53:28] Please begin already. [2:53:28] Good afternoon City Council. [2:53:29] My name is Christina Marie [2:53:32] Green, a renter in District [2:53:33] eight advocate for the aclu of [2:53:34] Santiago Imperial County and [2:53:38] the program director of [2:53:38] the Poverty Project at ucsd [2:53:39] advocating for housing insecure [2:53:44] and how students I am in favor [2:53:45] of the housing that empty house [2:53:45] homes tax towards owners of [2:53:49] second, third and more homes. [2:53:50] As a former student who [2:53:50] navigated being unhoused couch [2:53:55] hopping in a housing market [2:53:56] designed to price students out [2:53:56] and to price our workers and [2:54:01] families out, the city of San [2:54:01] Diego was losing the bright [2:54:02] minds and leaders met to stay [2:54:03] and contribute to this amazing [2:54:06] city during a time where [2:54:07] federal funding is being cut [2:54:08] from vital programs and [2:54:12] the greed of homeowners who [2:54:12] continue to escape paying their [2:54:13] fair share. [2:54:13] It's time to redistribute [2:54:18] housing availability and punish [2:54:19] those who continue to make [2:54:20] the housing market unbearable, [2:54:20] inaccessible and monopolized. [2:54:24] Thank you so much for your [2:54:24] time. [2:54:25] >> And vote in favor of [2:54:26] the empty homes tax. [2:54:26] Thank you so much. [2:54:27] Thank you, Ted. [2:54:36] Woman. [2:54:37] >> Hey, how are you doing [2:54:37] today? [2:54:38] i'm I'm here in support of [2:54:39] the empty homes tax. [2:54:42] I grew up in 84 where my [2:54:43] grandfather was a homeowner [2:54:43] before he passed away. [2:54:49] He taught me the strategy and [2:54:49] the steps about, you know, [2:54:50] growing up and getting into [2:54:51] those things of owning a home. [2:54:51] Unfortunately today like those [2:54:54] steps and that strategy is not [2:54:55] possible because of [2:54:55] affordability, affordability [2:54:56] and availability. [2:55:01] And you know, there's a lot of [2:55:02] things that are said by folks [2:55:02] who do own different homes. [2:55:03] But my question to all those [2:55:04] folks is why don't we deserve a [2:55:07] chance to buy a home ourselves? [2:55:08] There's a lot of different [2:55:08] factors in why people can't buy [2:55:12] homes ready talked about cost [2:55:13] of living where you talk about [2:55:14] how much you get paid versus [2:55:14] how much that is. [2:55:15] But you know, we hear a lot of [2:55:19] people say that we need to do [2:55:20] things for retirees. [2:55:20] We need to do things for [2:55:21] the revenue. [2:55:21] We need to do things for all [2:55:22] these other people. [2:55:25] But what about real San Diego? [2:55:26] You know, I want to have an [2:55:26] opportunity to invite my family [2:55:27] over from out of town to my [2:55:27] home. [2:55:30] I want to have an opportunity [2:55:31] to maybe even games I can hold [2:55:31] myself But at the moment that's [2:55:32] not possible. [2:55:36] So can we have the opportunity [2:55:37] to gain one home for ourselves [2:55:37] before we start saying this? [2:55:38] You know, thank you but I [2:55:45] completely comment Lily on it. [2:55:45] Good afternoon council members. [2:55:52] I am the Director of policy at [2:55:52] Youth. [2:55:53] Well that item before you is an [2:55:54] important step to address [2:55:54] the budget deficit. [2:55:55] Young people for the past few [2:55:57] budget cycles have not been a [2:55:58] priority in many of your memos. [2:55:59] Many of our youth members [2:56:03] continue to express their own [2:56:04] and their families inability to [2:56:05] keep a roof over their heads. [2:56:09] Meanwhile, around 5140 homes [2:56:09] are empty. [2:56:10] Cost of living continues to [2:56:14] rise and services meant to be [2:56:14] safety net before their eyes [2:56:15] disappear as a community based [2:56:16] organization. [2:56:20] We strongly support this fair [2:56:21] approach to reduce anticipated [2:56:22] impacts to real public safety [2:56:26] programs and services utilized [2:56:27] by many youth. [2:56:27] Please vote yes and let [2:56:28] the voters decide to move or [2:56:32] not move this tax forward [2:56:33] because many of the residents [2:56:33] will not be impacted by this [2:56:34] and the people in this room do [2:56:39] not represent the entire U.S. [2:56:39] Especially those that are [2:56:40] against this proposal. [2:56:40] Thank you. [2:56:44] Thank you, Claire Snyder. [2:56:45] Good afternoon, counsel. [2:56:45] My name is Claire. [2:56:50] I am with youth. [2:56:51] Well, I'm a resident of [2:56:51] District three and I'm also a [2:56:52] renter. [2:56:53] I just want to make it very [2:56:56] clear that if you can afford to [2:56:57] home afford a home that can sit [2:57:01] and you are much more well-off [2:57:02] than anybody in San Diego, I'm [2:57:03] a renter but paying rent is [2:57:03] fine. [2:57:08] Kind of but like I can afford [2:57:09] it and I feel comfortable with [2:57:09] that But that so me being [2:57:13] comfortable that means that [2:57:14] other people who can afford all [2:57:14] these homes are much more [2:57:15] well-off and other people in [2:57:19] San Diego deserve [2:57:20] the opportunity and the chance [2:57:20] to be able to own a home and [2:57:21] not have it be a dream that [2:57:25] maybe they can afford a home [2:57:26] when they're near dead at 85. [2:57:27] It should be a reality for us [2:57:31] now and I think that we should [2:57:32] give this opportunity to [2:57:33] the rest of San Diego to be [2:57:37] able to vote on this matter in [2:57:38] San Diego to make the decision. [2:57:38] So I urge you to move this [2:57:40] forward. [2:57:47] >> Thank you, Mike. [2:57:47] >> Good afternoon. [2:57:51] Mike Patel District six. [2:57:52] I'm speaking in opposition [2:57:53] because there's three major [2:57:57] problems with this proposed tax [2:57:57] . [2:57:58] One it MAY not help the city [2:57:59] financially in the absence of [2:58:00] budget budgetary reform there's [2:58:03] no guarantee the additional [2:58:04] revenue is to the extent that [2:58:05] there is additional revenue [2:58:05] would go to public safety or [2:58:06] critical infrastructure [2:58:10] maintenance. [2:58:11] Two it probably won't make that [2:58:11] much of a difference makes me a [2:58:12] target more affordable. [2:58:14] There are 1.5 million people in [2:58:15] this city Focusing on 5000 [2:58:16] units is little more than a [2:58:21] distraction. [2:58:21] Three And most importantly it [2:58:22] will create what has been [2:58:23] referred to as an audit [2:58:26] industrial complex. [2:58:27] The idea has noted and I quote [2:58:28] the magnitude of the proposed [2:58:28] tax will incentivize tax [2:58:33] avoidance given that the city [2:58:34] will use and I quote [2:58:34] flexibility to adapt to [2:58:38] identify such avoidance is not [2:58:39] reassuring. [2:58:39] As a consequence, all [2:58:40] homeowners be burdened by [2:58:45] the possibility of an extensive [2:58:45] and unaccountable monitoring [2:58:46] and enforcement regime. [2:58:47] Proving that you own your own [2:58:47] house should not be more [2:58:51] complicated than getting [2:58:52] parking at the ballpark. [2:58:52] Thank you very much for that [2:58:53] concluding comment. [2:58:58] Jason Lopez. [2:58:59] After that it will be Paul [2:58:59] Kruger and Thurman Estrada [2:59:03] Kevin Ben. [2:59:04] Conor Robbins. [2:59:04] Grace Jimenez. [2:59:05] Please proceed. [2:59:05] Good afternoon, counsel. [2:59:09] I'm just Lopez and I'm here to [2:59:10] speak in opposition of the tax [2:59:10] measure. [2:59:11] I have the privilege of serving [2:59:14] as the 2020 PRESIDENT Of [2:59:14] the Pacific Southwest [2:59:15] Association of Realtors here in [2:59:16] San Diego and I currently [2:59:19] serves on the board of [2:59:20] directors and executive [2:59:20] committee with the California [2:59:21] Association of Realtors. [2:59:25] Our members represent tens of [2:59:26] thousands of homeowners in San [2:59:27] Diego who also oppose moving [2:59:27] this forward. [2:59:31] I've often said that [2:59:32] the association's exists for a [2:59:32] couple of reasons. [2:59:33] Among those are to protect [2:59:33] private property rights and to [2:59:37] promote homeownership [2:59:37] opportunities. [2:59:38] This measure would impact those [2:59:39] negatively by putting [2:59:43] the burden on homeowners to [2:59:44] document their occupancy when [2:59:45] they MAY not have need to. [2:59:49] So we speak in opposition to [2:59:50] this and would ask that you [2:59:51] work in partnership with [2:59:51] the associations and other [2:59:55] local housing advocacy groups [2:59:56] to come up with real solutions [2:59:56] for San Diego. [2:59:56] Thank you. [2:59:57] Thank you. [3:00:01] Paul Krueger. [3:00:02] >> I know you have something to [3:00:07] share so we'll get that up. [3:00:08] >> What I'm going to show you [3:00:08] is just two paragraphs from [3:00:13] the Union-Tribune editorial. [3:00:13] It's not the voters who are [3:00:14] going to decide this issue. [3:00:18] It's the courts And the San [3:00:19] Francisco vacancy tax was [3:00:23] struck down in the most [3:00:24] forceful way possible which is [3:00:25] that the court said there's not [3:00:29] even enough argument to take it [3:00:29] to trial. [3:00:30] Berkeley has not gotten an [3:00:35] exemption from court review. [3:00:35] There is no indication that [3:00:41] the Berkeley vacancy tax will [3:00:41] ever be held to be legal [3:00:42] because the landlords there are [3:00:47] simply holding off their filing [3:00:47] . [3:00:48] The gentleman noted an amicus [3:00:48] brief. [3:00:52] If you think that this Supreme [3:00:53] Court of California and more [3:00:54] the Supreme Court of the United [3:00:58] States is going to back a [3:00:59] vacancy tax, you know they're [3:00:59] not. [3:01:00] Please don't rush into this. [3:01:03] And more importantly, please [3:01:04] listen to the aba. [3:01:10] Those figures conflict greatly [3:01:11] with what you're hearing. [3:01:11] >> Thank you for that complete [3:01:12] comment. [3:01:16] I'm sorry my brother. [3:01:16] Good afternoon, counsel. [3:01:21] My name is Anselmo Jake Estrada [3:01:22] Estrada. [3:01:22] i am the clinical director for [3:01:23] the San Diego Construction [3:01:27] Trades Council. [3:01:27] You know, working people work [3:01:28] hard. [3:01:31] It's literally in the name [3:01:32] every day by every definable [3:01:33] measure, every metric that we [3:01:33] can we can speak to. [3:01:37] They've been what we've been [3:01:38] left behind at every step, [3:01:43] every single benchmark like key [3:01:44] point health care housing. [3:01:48] Today like every day working in [3:01:49] San Diegans or waking up and [3:01:49] wondering how they're going to [3:01:53] afford to buy a home, whether [3:01:54] wondering whether they can [3:01:55] afford to expand their family [3:01:59] have a kid and right now they [3:02:00] can't. [3:02:00] So this is actually the only [3:02:01] revenue measure that we might [3:02:05] be able to have before working [3:02:06] in San Diego And and the only [3:02:07] one of the only opportunities [3:02:10] that we have to actually put [3:02:11] housing out there on [3:02:11] the market. [3:02:12] I'm asking you to please move [3:02:12] this forward. [3:02:13] Please give us a chance to [3:02:16] actually have the housing that [3:02:17] we've all been talking about [3:02:17] for decades. [3:02:22] >> Thank you, Kevin. [3:02:22] Good evening. [3:02:28] Council My name is Kevin Vino. [3:02:29] I'm the housing justice [3:02:29] director at our Times Act where [3:02:30] a youth based nonprofit [3:02:33] fighting for housing justice [3:02:34] here in San Diego. [3:02:35] So the average home price right [3:02:38] now in San Diego is around $1 [3:02:39] million. [3:02:40] So if people have the luxury to [3:02:40] have two of these they're not [3:02:44] just a millionaire but by [3:02:44] definition a multimillionaire [3:02:48] On average when the average San [3:02:49] Diego can't even afford one of [3:02:49] these homes. [3:02:50] So I really appreciate Sean's [3:02:53] office for bringing this as a [3:02:54] tax because we are sick and [3:02:54] tired of having taxes that [3:02:59] target lower income and middle [3:03:00] class San Diego And this is [3:03:00] primarily going to be affecting [3:03:04] people who can afford this tax. [3:03:05] So I strongly advocate urged [3:03:10] council to bring this to [3:03:11] the ballot and so that we as [3:03:12] San Diegans can vote on this. [3:03:12] Thank you. [3:03:18] Thank you, Conor Robbins. [3:03:19] >> Good afternoon. [3:03:23] City Council. [3:03:24] I'm Conor Robbins, the chief [3:03:28] steward for Teamsters Local 96 [3:03:28] representing San Diego [3:03:29] Lifeguards. [3:03:29] We're in strong support of [3:03:33] the anti home tax and I [3:03:34] appreciate Councilmember De La [3:03:35] Rivera for bringing this item [3:03:35] forward. [3:03:39] I hear from my members all [3:03:40] the time about how hard it is [3:03:41] to live in San Diego and this [3:03:44] is largely because of the cost [3:03:44] of housing. [3:03:45] This tax supports our members [3:03:49] ability to build a stable [3:03:50] future here in San Diego. [3:03:51] That's why we support this. [3:03:56] Thank you all for considering [3:03:56] and we hope you'll vote in [3:03:56] favor. [3:04:00] >> Thank you Grace Rock a few [3:04:01] minutes after that if I can [3:04:06] have Patrick for your heart You [3:04:07] My apologies Jonathan Rain [3:04:12] Carmen Penaloza, Valdez and [3:04:12] Ramsey's If you can please come [3:04:13] forward. [3:04:13] These are our last speakers [3:04:14] here in council chambers before [3:04:20] we go virtual please proceed. [3:04:21] My name is Grace Minutes and I [3:04:22] was born and raised in San [3:04:22] Diego. [3:04:25] Kumi I territory. [3:04:26] I'm a member of a's Alliance of [3:04:27] Californians for Community [3:04:31] Empowerment and Infant for cpi [3:04:32] Students for Economic Justice [3:04:35] and a Renter for District four. [3:04:36] I'm here to support the empty [3:04:37] home tax ballot measure Bake at [3:04:41] Home should not be left to sit [3:04:42] and stale for months when so [3:04:46] many of our communities are in [3:04:46] danger of becoming houseless or [3:04:51] already are houseless If these [3:04:51] homes were to open up and be [3:04:52] made more affordable to renters [3:04:56] it will help with safety to our [3:04:57] San Diego residents and prevent [3:04:58] displacement to families. [3:05:01] The taxation of empty homes [3:05:02] will ensure much needed [3:05:02] investment on infrastructure [3:05:06] and services for the people of [3:05:06] San Diego. [3:05:07] I also do not give consent of [3:05:08] my tax dollars to be used for [3:05:11] Israel's genocide on Palestine [3:05:12] nor the terrorist group ice who [3:05:17] are attacking our people. [3:05:17] >> Invest in affordable housing [3:05:23] for everyone not unjust wars. [3:05:24] >> Patrick for Crane Friedman [3:05:26] is sitting in a time You'll [3:05:27] have two minutes. [3:05:27] >> Please proceed. [3:05:31] Council PRESIDENT LaCava [3:05:32] distinguished members of [3:05:33] council members of public here [3:05:33] today to talk My name is [3:05:37] Patrick Ferrier Straight day [3:05:38] Director of San Diego City [3:05:38] Firefighters Local 145 I'm here [3:05:42] today to speak in favor look at [3:05:43] 145 I was disappointed [3:05:44] the initial version didn't make [3:05:44] it. [3:05:48] The Rules Committee However we [3:05:48] are in strong support of [3:05:49] the initiative as it stands [3:05:52] before the full council today. [3:05:53] I thank you Council member [3:05:54] Yellow River for your hard work [3:05:54] and your dedication to bring [3:05:55] affordable housing to [3:05:58] the firefighters and [3:05:58] the citizens of the San Diego [3:05:59] City. [3:05:59] >> They all deserve a good [3:06:02] place to live. [3:06:03] I want to talk a little bit [3:06:04] about our firefighters though. [3:06:07] We have some of the bravest, [3:06:08] the finest and most selfless [3:06:09] people you're ever going to [3:06:09] meet. [3:06:10] They took an oath to lay their [3:06:13] lives down for any one of us in [3:06:14] this building here today. [3:06:15] But they're exasperated. [3:06:18] The inability to afford a home [3:06:19] within the city limits has left [3:06:20] them grasping at straws and [3:06:23] frustrated and they bring their [3:06:24] concerns to us. [3:06:24] Now they're commuting from out [3:06:28] of state, out of county, [3:06:28] sometimes out of the country [3:06:33] and it leaves them exhausted. [3:06:34] I want to put you into a [3:06:34] situation here. [3:06:37] Imagine you're up all night in [3:06:38] our fine city. [3:06:38] You're going to fires. [3:06:39] You're taking care of our most [3:06:43] vulnerable populations and [3:06:43] you're giving the best service [3:06:44] that you can. [3:06:47] Then you drive 2 to 4 hours to [3:06:47] your house. [3:06:48] Imagine trying to be a good [3:06:52] parent, a good spouse or just [3:06:52] enjoy your time off. [3:06:53] Now whether this initiative [3:06:57] brings revenue frees up homes [3:06:57] are both. [3:06:58] It's a win to the firefighters [3:07:02] and the citizens of this great [3:07:02] city. [3:07:03] i urge you to please move this [3:07:04] forward to the voters to decide [3:07:05] and I thank you very much for [3:07:13] your time today Jonathan Right [3:07:14] . [3:07:18] Hi and thank you for doing this [3:07:19] . [3:07:20] I just turned 62 on FEBRUARY [3:07:20] 26th. [3:07:21] I currently live in an [3:07:24] affordable housing building for [3:07:25] age 55 plus which actually I [3:07:25] converted to a hotel with no [3:07:29] kitchen run by the San Diego [3:07:30] Housing Commission. [3:07:34] I cannot legit I cannot find [3:07:35] legit housing living on Social [3:07:38] Security at three $1,350 per [3:07:43] month I have resigned. [3:07:44] I have resigned to never owning [3:07:48] my own home condo or otherwise [3:07:49] in a city that I have resided [3:07:52] in since 1988. [3:07:53] I would like to at least be [3:07:57] able to rent a decent apartment [3:07:58] in a safe neighborhood. [3:07:59] I find this proposal very [3:08:02] acceptable. [3:08:03] We need to weed out corporate [3:08:07] and rich people and once again [3:08:08] make housing affordable In San [3:08:12] Diego some say live within your [3:08:17] own means What is living with [3:08:18] your own means? [3:08:21] Social Security does not allow [3:08:22] Thank you for that. [3:08:29] Thank you for doing Carmen So [3:08:34] short for Hello My name is [3:08:35] Carmen and I'm a resident and [3:08:35] living in District nine. [3:08:39] I'm here with you as well to [3:08:40] comment on the empty home tax [3:08:41] proposed to go to this year's [3:08:44] ballot. [3:08:44] Housing is a fundamental human [3:08:45] right for all and not a profit [3:08:48] opportunity for a select few. [3:08:49] While thousands of San Diegans [3:08:50] struggle to keep a roof over [3:08:54] their heads including myself [3:08:54] and other family members living [3:08:55] on the street or on the verge [3:08:59] of homelessness. [3:09:00] Currently ownership of multiple [3:09:00] properties is a reality for [3:09:04] wealthy people and [3:09:05] corporations. [3:09:05] It is this greed that caused [3:09:08] San Diego instability, dignity [3:09:09] and their right to a home. [3:09:10] The measure is clear this will [3:09:14] not impact primary home owners [3:09:15] or renters and only applies to [3:09:15] homes sitting vacant for most [3:09:16] of a year. [3:09:19] If you're in San Diego and you [3:09:20] can own this many homes, you [3:09:24] can take this tax like this has [3:09:25] been affecting us in low income [3:09:29] marginalized communities for [3:09:29] years. [3:09:30] So yeah, please vote yes today [3:09:32] to move the empty home tax [3:09:33] proposal to a ballot. [3:09:37] >> Thank you. [3:09:38] >> And our final speaker here [3:09:42] in council chambers is Ramsey's [3:09:42] . [3:09:42] >> Hello. [3:09:44] I want to speak in favor of [3:09:49] this item. [3:09:50] So over the last year of [3:09:51] the budget the budget [3:09:51] discussion, one thing has [3:09:54] become absolutely clear [3:09:55] The poor people of San Diego [3:09:56] can no longer afford to fill [3:09:56] this budget deficit. [3:10:00] We saw that with the failure of [3:10:00] Balboa Park making a net of [3:10:03] less than what, 3 million less [3:10:04] than that. [3:10:04] And now we have an option that [3:10:05] could potentially get us tens [3:10:08] of millions of dollars. [3:10:09] So on that on that level alone [3:10:09] it's a no brainer. [3:10:13] Now personally I've wanted to [3:10:13] live in San Diego my whole [3:10:14] life. [3:10:17] i was born in San Diego. [3:10:18] My parents relocated to East [3:10:21] County and we had a house and [3:10:22] shortly after 2008 private [3:10:22] equity purchased that house and [3:10:26] we lost it. [3:10:27] This year I tried moving into [3:10:27] San Diego and unfortunately I [3:10:31] was I was met with the prices [3:10:32] and I was not able to So now I [3:10:33] live exactly half a mile away [3:10:36] from the border. [3:10:36] But everything in San Diego [3:10:37] still affects me. [3:10:37] Everything that you guys do [3:10:38] still affects me. [3:10:40] So that's why I come to these [3:10:41] these things One day I hope [3:10:41] that I can afford to live in [3:10:42] San Diego but right now that's [3:10:45] not today. [3:10:46] I'm saying the five minute time [3:10:46] we're going to those [3:10:50] participating remotely. [3:10:51] We have 14 speakers in [3:10:51] the queue starting with Mary [3:10:52] Carson. [3:10:57] If you can please unmute. [3:10:58] >> Hello. [3:11:03] My husband and I purchased a [3:11:03] second home a two bedroom condo [3:11:07] in 2011 for our family, [3:11:08] children, grandchildren, [3:11:09] siblings, parents and close [3:11:09] family friends. [3:11:12] What concerns us the most with [3:11:12] this proposal? [3:11:13] If it goes into effect it will [3:11:17] significantly impact our local [3:11:17] businesses. [3:11:18] The one thing we all do when we [3:11:22] visit San Diego is spend money [3:11:22] by going out to eat, drink and [3:11:23] we go to entertainment venues. [3:11:26] And I haven't read any economic [3:11:27] impact analyzes of the fiscal [3:11:31] consequences to local [3:11:32] businesses as a result than [3:11:32] the reduction of second home [3:11:33] ownership. [3:11:36] The very people I feel [3:11:37] Councilmember Ella Rivera is [3:11:38] trying to support and protect [3:11:41] are going to be hurt the most [3:11:42] with the contracting business [3:11:42] environment. [3:11:45] This tax feels very punitive to [3:11:46] not just second home owners but [3:11:47] to the people who work locally. [3:11:51] We are not a wealthy family and [3:11:51] this proposal is not [3:11:52] the answer. [3:11:55] It hasn't worked well in other [3:11:56] cities, often garnering far [3:11:57] less revenue than projected as [3:12:00] identified in the city's [3:12:01] independent Budget Analyst [3:12:01] report. [3:12:05] Thank you for a no vote. [3:12:06] >> Next a Zoom user if you can [3:12:09] please unmute. [3:12:14] >> Hi, my name is Diana [3:12:14] Browning. [3:12:15] I am totally against [3:12:19] the proposed tax on vacant [3:12:19] homes. [3:12:20] People who spoke before me made [3:12:25] good cases for the fact that we [3:12:26] the city of San Diego will have [3:12:29] to get involved in [3:12:29] the inevitable litigation which [3:12:34] could be costly and that other [3:12:34] jurisdictions have not shown [3:12:38] great success in impacting [3:12:39] the availability of affordable [3:12:43] housing. [3:12:44] But on a personal note, let me [3:12:45] tell you our story. [3:12:48] The notion that many of these [3:12:48] vacant home owners are wealthy [3:12:52] and can afford the tax is [3:12:53] totally unfounded. [3:12:54] My husband and I are 87 and 82 [3:12:54] years old. [3:12:58] We both worked and saved for [3:12:58] decades. [3:12:59] We've owned our house in old [3:13:02] Scripps Ranch for 48 years, [3:13:03] raised three children here. [3:13:07] We also have a small home up [3:13:08] near Seattle where we have [3:13:08] other family. [3:13:12] When we're out there our house [3:13:12] is not vacant. [3:13:13] It's occupied periodically by [3:13:17] other family members. [3:13:18] >> Please vote no to putting [3:13:18] this on the ballot. [3:13:19] Sorry your time has concluded [3:13:21] although Maestro, if you can [3:13:25] please unmute. [3:13:30] Hi my name is Del Mastro. [3:13:31] I'm a disabled veteran. [3:13:32] I'm an ex blue collar worker on [3:13:35] the senior year and I'm a small [3:13:36] mom and pop landlord. [3:13:40] This is being pushed through [3:13:40] without being completely [3:13:41] reviewed. [3:13:48] I my issues with it is that in [3:13:49] 2000 24th JANUARY I had a [3:13:50] tenant give me notice. [3:13:54] I was in such so much pain [3:13:54] physically I had to have a hip [3:13:55] replacement in MARCH. [3:13:59] It took me longer than the 183 [3:14:04] days to be able to read to get [3:14:05] my apartment up. [3:14:08] The same thing happened for me [3:14:09] in 2005 where I had another hip [3:14:13] replacement not only need a [3:14:13] knee replacement. [3:14:14] Is there a way I can have an [3:14:18] extension here if I have health [3:14:19] issues? [3:14:19] I'm a senior. [3:14:20] I mean it shouldn't [3:14:23] discriminate against disabled [3:14:23] people or handicapped people. [3:14:28] Most mom and pops or senior [3:14:29] years and we have issues not [3:14:30] being able to get your time has [3:14:33] concluded after John Stump. [3:14:37] After John Stump it is Tony and [3:14:38] then 8700 John Stump please [3:14:41] unmute I can't hear me for you. [3:14:42] >> Thank you. [3:14:46] I sent in a letter. [3:14:47] This is a pure tax measure. [3:14:51] If it was a housing measure [3:14:56] housing would be the dedicate [3:14:57] hated use of these funds. [3:14:57] But of course there is no [3:15:01] dedicated use of this fund. [3:15:06] Please council members at least [3:15:06] modify the proposal. [3:15:11] So the fund is our dedicated to [3:15:12] housing debt reporting on [3:15:12] the actual number of housing [3:15:16] units created by this occurs [3:15:21] and that the audit of [3:15:22] the number of housing units [3:15:25] created by this tax. [3:15:26] Otherwise you're pouring this [3:15:31] tax into a general fund and [3:15:36] it's going to disappear down [3:15:37] the drain like all the other [3:15:37] overspending. [3:15:41] Thank you. [3:15:41] >> Thank you. [3:15:42] Next is Tony If you can please [3:15:45] unmute. [3:15:50] >> That also concludes the five [3:15:50] minute time We're here in [3:15:51] council chambers. [3:15:51] There are 14 speakers in [3:15:52] the queue. [3:15:54] No additional speakers will be [3:15:55] taken. [3:15:55] >> Tony if you can please [3:15:56] proceed with your comments. [3:16:00] Hello City Council. [3:16:00] Thank you very much for letting [3:16:03] me speak with you all today And [3:16:04] I want to start by apologizing [3:16:08] to Councilmember Vivian Moreno [3:16:08] . [3:16:09] Yesterday I falsely attributed [3:16:13] the credit that should have [3:16:14] been given to you to Stephen [3:16:15] Whitburn for supporting [3:16:19] the empty House proposal in [3:16:23] the committee last week And I [3:16:24] wanted to speak today in favor [3:16:25] of the measure. [3:16:28] I also did want to address [3:16:28] the concerns that have been [3:16:33] raised in San Francisco and in [3:16:33] Berkeley as well. [3:16:34] I want to say that everyone's [3:16:38] concerns about the litigation [3:16:38] in Berkeley and and waiting for [3:16:42] reservation for whatever [3:16:43] happens there to determine what [3:16:44] we decide to do here. [3:16:47] I think we're missing the point [3:16:48] . [3:16:48] We need bold leadership. [3:16:49] Now we don't need to wait for [3:16:52] other cities to tell us what to [3:16:52] do in our city. [3:16:53] We that's why we have our own [3:16:57] courts to decide those things [3:16:57] for ourselves. [3:16:58] >> And we need bold leadership [3:16:58] to take action now. [3:16:59] Thank you. [3:17:02] Thank you. [3:17:03] >> Next is 8700 If you can [3:17:07] please unmute Star six turn [3:17:12] mute. [3:17:13] >> Thank you Joy from the cd [3:17:14] three. [3:17:17] I'm going to repeat what I said [3:17:17] at Rules. [3:17:18] I feel good about it. [3:17:21] There are parts of this item [3:17:26] that will only be clear as we [3:17:27] implement and live them. [3:17:30] Does this apply to all of life? [3:17:31] Yet we must have the courage to [3:17:35] take our leaps. [3:17:36] Here is my main point. [3:17:41] We are one people equals. [3:17:45] We are one family in one San [3:17:45] Diego. [3:17:46] One family has one part of [3:17:51] the money used to cover their [3:17:55] needs in our city family. [3:17:56] That includes all levels of [3:18:00] income and revenue for sharing. [3:18:04] For sharing with all San Diego [3:18:05] homeowners are part of this [3:18:09] family's assets. [3:18:10] Let's do one step at a time. [3:18:15] This is exciting on this item [3:18:16] and if we get enough time has [3:18:20] concluded the San Diego family [3:18:20] moves this up. [3:18:21] We try and if you can please [3:18:21] unmute. [3:18:24] After that is Francine Maxwell [3:18:25] . [3:18:25] >> Oh hi. [3:18:32] My name We trained and I'm [3:18:33] executive director of people. [3:18:35] I'm one of kalinin to continue [3:18:35] to attract my support for [3:18:39] the ballot measure. [3:18:39] Like I said a long time it's [3:18:40] really difficult to build [3:18:45] housing and the most thing that [3:18:46] we can do is just ship a lot of [3:18:49] the empty homes and make them [3:18:49] make them available For many, [3:18:54] many folks here And then I go [3:18:55] and make it more affordable for [3:18:55] them. [3:18:58] Revenues increase so high none [3:18:58] of that came in by home [3:18:59] anymore. [3:19:03] My friends are leaving the town [3:19:04] and I really don't want them to [3:19:04] leave. [3:19:05] I don't want anymore about to [3:19:05] leave. [3:19:10] So please vote for days and [3:19:10] support for that two and then [3:19:12] put them on the ballot and [3:19:13] thank you. [3:19:13] >> Thank you. [3:19:14] Next is Francine Maxwell If you [3:19:19] can please unmute. [3:19:20] >> Francine Maxwell District [3:19:24] four in Opposition data can be [3:19:25] manipulated. [3:19:26] As we have seen before as it [3:19:29] pertains to our trash free we [3:19:30] had an outside attorney's I [3:19:30] understand that was named. [3:19:34] We have a plethora of city [3:19:34] attorneys but we continually [3:19:35] spend money to get an outside [3:19:39] attorney. [3:19:39] So again we are paying [3:19:40] attention closely to how our [3:19:43] tax dollars are being spent. [3:19:44] When you look at this, this is [3:19:48] going to be dedicated money for [3:19:49] public safety because again we [3:19:50] are one of the safest big [3:19:53] cities and public safety is [3:19:54] number one for all. [3:19:55] So there is other ways that we [3:19:55] can do this. [3:19:58] And when somebody keeps saying [3:20:03] that people are just so evil [3:20:03] because they have to homes [3:20:04] remember what it took for some [3:20:08] people to purchase their [3:20:09] parents home. [3:20:12] And so they are also working [3:20:13] two and three jobs and can't [3:20:13] afford their parents home. [3:20:17] But generational wealth starts [3:20:17] with making sure that grandma [3:20:22] and mom's house never gets sold [3:20:22] . [3:20:23] >> So please keep that in mind. [3:20:24] Thank you for that concluding [3:20:24] comment. [3:20:25] Blair Beckman if you can please [3:20:30] unmute high where we commenced [3:20:34] this item Was it committee Last [3:20:35] week I was in Maui learning [3:20:38] about it and now back in San [3:20:38] Diego and we're finalizing [3:20:39] things. [3:20:39] Good luck in your efforts. [3:20:44] I think this is an important [3:20:44] item. [3:20:45] We're having an important shift [3:20:47] in thinking that you're trying [3:20:48] to develop a sense of care for [3:20:52] our the people of our community [3:20:53] and our society. [3:20:54] I don't think anybody can fault [3:20:58] councilperson Lapera and staff [3:20:58] for what they're working on [3:21:02] their goals their commendable [3:21:03] really good luck in such [3:21:03] efforts. [3:21:07] I think we're trying to address [3:21:07] San Francisco and that Oakland [3:21:08] and Berkeley have improved upon [3:21:12] San Francisco's ideas that that [3:21:13] needs to be considered And I [3:21:13] don't know quite what to do [3:21:17] with the taxation issue how our [3:21:18] founding fathers would view [3:21:22] taxation versus an overall care [3:21:23] for people that we're trying to [3:21:23] offer for this item. [3:21:24] Good luck how we can move [3:21:27] forward in our human history [3:21:28] and thinking of care as an [3:21:29] important concept of our [3:21:33] beliefs systems. [3:21:33] >> Thank you. [3:21:36] Next is phone number ending in [3:21:39] 356356 and then after that evac [3:21:45] 3856. [3:21:46] This is Carol Shorter said I [3:21:47] oppose this under tax on a [3:21:49] residential real estate broker [3:21:50] of over 40 years in San Diego [3:21:54] loving this tax on likely [3:21:58] nonresidents who have no voice [3:21:59] in this conversation and they [3:22:00] will have no vote is absolutely [3:22:04] unconscionable. [3:22:05] They already pay their fair [3:22:05] share I for fair share a number [3:22:08] of times they pay their fair [3:22:09] share. [3:22:09] It's all done on property tax [3:22:10] valuation. [3:22:10] Many of these people are [3:22:13] recently purchasing They're [3:22:14] paying over $10,000. [3:22:14] You want to pay them another x, [3:22:18] y, z amount arbitrarily. [3:22:18] That's way more than their fair [3:22:19] share. [3:22:23] These are visitors to our city. [3:22:24] What used to be like San [3:22:28] Diego's Best Buy some you know [3:22:28] Not anymore. [3:22:29] Not if you're going to have [3:22:32] this unwelcome mat at your door [3:22:32] . [3:22:33] I don't like where our city is [3:22:33] headed. [3:22:34] I don't think you have any [3:22:38] right to tax second homes. [3:22:41] What gives you the privilege to [3:22:42] stand there discriminate [3:22:42] against one group of people and [3:22:46] you say to them oh you you [3:22:47] people over here have to pay [3:22:48] for our bad management. [3:22:48] That's wrong. [3:22:51] There's so many things wrong [3:22:51] with that. [3:22:52] >> Your time has come back. [3:22:55] If you can please unmute I am a [3:22:59] resident of d five and I am [3:23:00] calling in to support this [3:23:00] measure. [3:23:04] I believe that housing is a [3:23:04] human right. [3:23:05] I believe that the city has a [3:23:05] responsibility to ensure that [3:23:09] its housing stock is being used [3:23:09] by residents, by [3:23:10] the communities, by people who [3:23:14] are currently struggling to [3:23:14] afford to live in [3:23:15] the communities that they work [3:23:18] in and serve. [3:23:19] >> If somebody wants to have a [3:23:20] second vacant home or have a [3:23:23] vacation home or speculate on [3:23:24] real estate, that's fine. [3:23:25] That's not something the city [3:23:28] will ever be able to stop. [3:23:28] But I believe that the city has [3:23:33] a duty to disincentivize it and [3:23:33] if that goes to help provide [3:23:38] more service is by giving a [3:23:39] progressive tax measure that [3:23:39] supports our general fund. [3:23:42] I'm fine with that too. [3:23:43] >> I live in this city. [3:23:44] I benefit from the services [3:23:44] here. [3:23:48] Thank you. [3:23:48] Thank you. [3:23:49] Next is respect a bird rug If [3:23:57] you can please unmute. [3:23:57] Good afternoon. [3:23:58] I'm Henry Bevins With respect [3:24:03] Bird one in La Hoya along [3:24:03] the coast. [3:24:06] We're here to say build more [3:24:07] first homes first and support [3:24:08] the empty second homes. [3:24:11] That's but pair it with [3:24:15] the coastal height limit Update [3:24:16] on the 2026 ballot. [3:24:17] Don't be scared Taxing [3:24:20] vacancies Managers scarcity But [3:24:21] it does not end in the 1972 [3:24:24] Nixon era coastal height limit [3:24:25] update will end scarcity. [3:24:29] For 54 years this Nixon Arab [3:24:30] law has used I-5 as a concrete [3:24:34] barricade to opportunity west [3:24:35] of the freeway. [3:24:35] Coastal neighborhoods approved [3:24:38] only 25 affordable homes in [3:24:38] three years. [3:24:39] That's just not fair. [3:24:43] These measures are partners. [3:24:44] One treats a symptom, the other [3:24:46] treats a disease An artificial [3:24:47] Watergate error 50 years [3:24:47] scarcity of land. [3:24:51] Please place both on the 2026 [3:24:51] ballot a draconian 30 foot [3:24:57] height limit until these miles [3:24:57] from the coast is simply not [3:24:58] serving San Diego. [3:24:59] Great turnout today. [3:24:59] I hope people work on that. [3:25:05] Thank you. [3:25:06] Next is Looper Rogers If you [3:25:09] can please unmute and for that [3:25:10] will be Narcan and and cpm [3:25:14] please proceed. [3:25:14] Thank you. [3:25:15] Oh the metric community [3:25:18] advocacy Network is in support [3:25:19] of this proposal. [3:25:20] Thank you Council Member de La [3:25:20] Ribera. [3:25:23] Since we believe that it is [3:25:24] time to address the housing [3:25:24] crisis that the city's [3:25:25] residents have been [3:25:27] experiencing in these recent [3:25:28] years people who are actually [3:25:29] working and are contributing to [3:25:33] the city. [3:25:33] Please people don't choose to [3:25:34] be poor San Diego and are [3:25:37] stepping up and doing what they [3:25:38] can to continue living in [3:25:38] the city. [3:25:41] It is difficult to hear of [3:25:42] parents taking second shifts [3:25:43] just to be able to afford rent. [3:25:46] For many mothers this is their [3:25:46] first time working but they are [3:25:47] willing to step up out of their [3:25:50] homes and work because they [3:25:51] understand the reality that [3:25:51] they are facing. [3:25:55] This year we will start to see [3:25:55] the effects of the many budget [3:25:56] deficits happening at every [3:25:57] single level and it is [3:26:00] difficult to imagine to imagine [3:26:01] how much worse the housing [3:26:01] situation will get. [3:26:06] That is why we asked City [3:26:06] Council to vote yes on this [3:26:07] proposal and let us have final [3:26:09] say in the JUNE elections. [3:26:10] Like many advocates, we want to [3:26:11] see more housing for working [3:26:12] class San Diego and thank you [3:26:15] for your time and consideration [3:26:15] . [3:26:15] Thank you. [3:26:16] Next is on If you can please [3:26:24] unmute I, I want to touch on [3:26:28] the fact that Joe LaCava talked [3:26:29] on it in the Rules Committee on [3:26:30] this Is that what will happen [3:26:35] if somebody takes a house back [3:26:35] they get it back for three [3:26:38] months or if they have to [3:26:39] renovate it then they have to [3:26:42] list the home and then most [3:26:43] first time home buyers are [3:26:44] going to need 60 days for loan [3:26:48] approvals for that particular [3:26:49] seller can just go and sell it [3:26:52] to a corporate nation. [3:26:53] The idea this law should be put [3:26:57] into place is going to promote [3:26:58] selling your home to a [3:27:02] corporation over selling it to [3:27:03] a first time home buyer. [3:27:07] This six month period is is is [3:27:07] a wrong idea without any kind [3:27:12] of extension for motivation For [3:27:13] me I have health issues so I [3:27:17] need to have an extension at [3:27:21] times longer than 183 days. [3:27:21] >> Thank you. [3:27:22] Thank you, Nancy. [3:27:28] If you can please unmute I can [3:27:28] you hear me? [3:27:29] Yes. [3:27:33] Please proceed. [3:27:33] >> Thanks. [3:27:34] I'm Nancy with of your Families [3:27:35] for Justice calling in support [3:27:37] of the empty homes tax ballot [3:27:38] measure. [3:27:38] I also work in homeless [3:27:42] services with staff who have [3:27:42] previously and currently are [3:27:43] experiencing homelessness. [3:27:44] We believe housing is a human [3:27:48] right. [3:27:48] We are grateful for Sean [3:27:49] Rivera's persistence in finding [3:27:50] a way to address our housing [3:27:50] crisis. [3:27:52] We need both bold solutions and [3:27:53] this is one of them. [3:27:54] It's all the better By being a [3:27:57] voter decision. [3:27:58] We are a collection of families [3:27:58] who are finding it almost [3:27:59] unbearable to raise our kids [3:28:02] here under the burden of [3:28:03] housing and child care costs. [3:28:04] Many of us wish to have kids or [3:28:06] more kids but can't because of [3:28:07] the inability to rent or buy [3:28:07] bigger. [3:28:11] But the commenters with two [3:28:12] homes that have called in these [3:28:16] wake up you are not suffering. [3:28:17] You can avoid this by making [3:28:17] your property available for [3:28:18] short term renters or other [3:28:21] ways. [3:28:22] >> It's not occupied. [3:28:22] Maybe even increase your [3:28:23] income. [3:28:26] Last but not least our budget [3:28:26] woes could be quickly solved [3:28:30] with public outrage over apd [3:28:30] murdering and spending $30 [3:28:35] million of our taxpayer dollars [3:28:36] until the time has concluded. [3:28:37] >> Chris Gene, if you can [3:28:40] please unmute. [3:28:40] >> After that is Lyn. [3:28:41] Christine Please proceed. [3:28:45] Hi, I'm in District one. [3:28:46] I don't understand why there's [3:28:50] a rush to get this on [3:28:50] the ballot. [3:28:51] You guys have had ten months [3:28:53] you've been working on it for [3:28:53] ten months to get your [3:28:54] propaganda out and everything [3:28:54] else. [3:28:58] You know people in opposition [3:28:59] only have a few months to get [3:29:00] the other side out So I think [3:29:03] that's really wrong. [3:29:04] I also believe there's going to [3:29:04] be a lot of unintended [3:29:05] consequences that come with [3:29:07] this. [3:29:08] People are going to be turning [3:29:12] their homes The Airbnbs it's [3:29:13] going to destroy neighborhoods. [3:29:14] I don't think it's a good thing [3:29:18] And I just I don't like [3:29:18] the rush. [3:29:19] Also currently right now in my [3:29:22] area rent is 10 to $20,000 a [3:29:23] month. [3:29:26] That's going to go up because [3:29:27] when you guys changed [3:29:27] the zoning, the fire zoning now [3:29:32] all of a sudden we've lost our [3:29:32] homeowner's insurance. [3:29:33] So we're probably gonna have to [3:29:34] go with the fair plan which is [3:29:37] anything but fair. [3:29:38] It's expensive And if people [3:29:39] are renting their homes out if [3:29:41] they're going to have to [3:29:42] increase the rent from 10 to 20 [3:29:46] to 20 to 30,000, it's not a [3:29:46] good thing. [3:29:47] >> Please vote no. [3:29:47] Your time has concluded. [3:29:55] Next is Lynn. [3:29:56] >> Hi there. [3:30:00] My name is Lynn and I'm a San [3:30:01] Diego resident strongly in [3:30:05] support of the empty homes tax [3:30:05] . [3:30:06] I've been in San Diego over 30 [3:30:10] years and I once owned a condo [3:30:11] that I lost in the crash of [3:30:15] 2008 And after that I. [3:30:16] I could never seem to get [3:30:16] caught up. [3:30:20] As prices continued to rise [3:30:23] etc. But when the pandemic hit [3:30:24] in 2020 all of my friends even [3:30:28] the ones that were somewhat [3:30:29] poor like me became [3:30:29] millionaires overnight who [3:30:34] owned homes, anybody who owned [3:30:35] a home even if it was a you [3:30:37] know, 400 square foot hovel. [3:30:41] Well, I spent the last five [3:30:42] years getting worrying about [3:30:42] getting kicked out of my [3:30:46] apartment that I rent. [3:30:47] So I've been checking into all [3:30:48] kinds of things that California [3:30:51] dream for all addus tiny homes. [3:30:55] >> But none of those things are [3:30:56] doable because of permitting [3:31:01] and all that kind of stuff and [3:31:02] I'm glad some of that [3:31:05] concluding comment Janika after [3:31:06] that is Doreen Diaz and she is [3:31:06] our final speaker. [3:31:11] Janika Falconer Hi, can you [3:31:11] hear me? [3:31:12] Yes, Please proceed. [3:31:15] How can you to me anyway I am [3:31:16] Janika Addie for resident [3:31:17] people who live and work in San [3:31:20] Diego know firsthand that [3:31:21] the cost of renting and buying [3:31:21] a place to live is sky high. [3:31:24] Part of our housing crisis is [3:31:25] due to big corporations and [3:31:28] wealthy investors snatching up [3:31:29] over 5000 homes. [3:31:29] These empty second, third and [3:31:30] fourth homes tighten Housing [3:31:34] market and make it more [3:31:34] expensive to rent or buy. [3:31:35] San Diego can increase access [3:31:38] to housing by supporting a [3:31:39] proposed ballot measure that [3:31:39] would tax big corporations and [3:31:42] wealthy investors who are [3:31:43] keeping homes off the market. [3:31:44] This will encourage them to [3:31:48] either put homes on the market [3:31:49] for Sandy against to rent or [3:31:49] buy. [3:31:49] Increasing the supply and [3:31:53] lowering the cost or pay a tax [3:31:53] to generate revenue to build [3:31:54] more affordable housing and [3:31:54] infrastructure. [3:31:58] Please put voters in control of [3:31:58] deciding how revenue for [3:31:59] affordable housing and other [3:32:02] items are spent. [3:32:03] Through public input, [3:32:03] transparent oversight and an [3:32:08] independent budget audit. [3:32:08] Thank you for serving our [3:32:09] communities. [3:32:12] Have a good night. [3:32:12] Thank you. [3:32:13] Our final speaker is during [3:32:13] Diaz. [3:32:16] If you can please unmute. [3:32:16] >> Hi. [3:32:22] I am in favor of this. [3:32:23] That has been fighting a vacant [3:32:27] hold for five years. [3:32:30] This home was a public nuisance [3:32:31] since DECEMBER 2021 Code [3:32:31] enforcement abatement. [3:32:35] There was no action taken. [3:32:40] The project 112833 also states [3:32:45] that this lot is empty because [3:32:49] dsd allows fraud with Diva llc [3:32:50] and broker committing fraud [3:32:51] saying it's an empty lot. [3:32:55] But as I ask you this with this [3:32:56] vacant property it can an empty [3:32:58] lot get a demolition permit? [3:32:59] And why would an empty lot be [3:33:03] given a demolition permit and [3:33:04] they lie in the application [3:33:05] saying it's known to very high [3:33:09] fines then no to code [3:33:10] enforcement. [3:33:14] These vacant home is a nuisance [3:33:15] and anybody who can't rent a [3:33:19] home has a problem. [3:33:20] >> The delivery not wanting. [3:33:24] Your time has concluded That [3:33:25] does include public comment. [3:33:25] I would just note for [3:33:28] the record that we did receive [3:33:29] four speakers in favor that did [3:33:29] not wish to speak. [3:33:30] One speaker in opposition that [3:33:33] did not wish to speak and we [3:33:33] received 20 comments in favor [3:33:37] and 94 comments in opposition [3:33:37] very comment form which have [3:33:38] been distributed to [3:33:38] the Council. [3:33:39] Thank you. [3:33:41] Council PRESIDENT. [3:33:41] All right. [3:33:42] Thank you City Clerk. [3:33:46] Before we move on, please join [3:33:47] me in thanking City Clerk [3:33:49] Fuentes for managing as well as [3:33:54] her entire team going forward. [3:33:55] >> At this time you could clap [3:33:59] Nobody. [3:34:04] Anyway, it is not an easy task [3:34:05] and her and her team do a [3:34:05] fabulous job. [3:34:08] We very much appreciated. [3:34:09] Make sure everybody gets heard [3:34:10] that wants to speak. [3:34:13] Thank you all for showing up [3:34:14] and speaking Those who [3:34:14] participated remotely [3:34:15] appreciate that as well. [3:34:18] So now we'll turn it over to [3:34:19] council members for questions, [3:34:23] comments and entertain a motion [3:34:24] and we'll start with council [3:34:25] member Ella Rivera. [3:34:25] >> Thank you. [3:34:29] Council PRESIDENT Or say thank [3:34:30] you to Mayor you and Molly for [3:34:33] all the work that you put into [3:34:33] this. [3:34:34] Thank you so much. [3:34:38] Thank you, Charles to you and [3:34:38] your team for all the analysis [3:34:39] that you provided Treasurer's [3:34:43] office for their work and again [3:34:44] the City Attorney's office I [3:34:44] also want to say thank you to [3:34:48] the folks who came down here to [3:34:48] share your story. [3:34:49] I think you helped ground us in [3:34:52] what is at stake today and I [3:34:53] could not help but notice how [3:34:57] many young faces we saw here [3:34:57] today. [3:35:02] Um, the desire to just have a [3:35:06] chance to live in this city is [3:35:11] so strong and we need to [3:35:11] encourage that. [3:35:16] We need to make folks know that [3:35:17] we are trying to give them [3:35:17] again. [3:35:20] No one's asking for a handout. [3:35:21] No one here was asking for free [3:35:21] housing. [3:35:25] They want a chance to live in [3:35:25] the city that they love and [3:35:26] that they work in. [3:35:26] We heard it from teachers. [3:35:30] We heard it from firefighters. [3:35:30] We heard it from students. [3:35:31] We heard it from recent grads. [3:35:32] And I so appreciate you all [3:35:34] showing up here and sharing [3:35:39] your stories And that's why [3:35:40] home shouldn't be sitting empty [3:35:43] during a housing crisis. [3:35:44] We are making strides as a [3:35:45] city. [3:35:45] We've strengthened tenant [3:35:48] protections. [3:35:49] We've increased permitting and [3:35:49] production. [3:35:50] We've created tools to preserve [3:35:53] affordable housing And we have [3:35:54] an opportunity today to take an [3:35:54] additional step and ask voters [3:35:58] whether they want another tool [3:35:59] that can directly help San [3:36:00] Diego and stay in San Diego. [3:36:03] The empty homes tax that's [3:36:04] proposed would do two things [3:36:04] that matter. [3:36:05] First, it changes incentives. [3:36:09] Some homes currently sitting [3:36:09] vacant would are more likely to [3:36:13] be rented or sold to people who [3:36:13] actually live here. [3:36:17] As a council we've celebrated [3:36:18] breaking ground and approving [3:36:18] financing for the development [3:36:21] of 50 homes 75 homes, 100 [3:36:22] homes. [3:36:22] And we should celebrate that [3:36:26] every time we build a home we [3:36:27] add a home. [3:36:28] We relieve pressure in a market [3:36:31] that has become a pressure [3:36:32] cooker for everyday people. [3:36:32] We cannot predict exactly how [3:36:33] many homes will return to [3:36:36] the long term market if this [3:36:36] measure passes but we do know [3:36:37] this incentives will change and [3:36:40] homes will come back into use. [3:36:41] And just like every new home we [3:36:42] build, every home returned to [3:36:46] the housing market is worthy of [3:36:46] celebration because it opens a [3:36:47] door to a family or a young [3:36:51] professional that gets to stay [3:36:52] in San Diego potentially even [3:36:52] as a homeowner. [3:36:56] The second thing it does is [3:36:56] generate new revenue for [3:36:57] general city services services [3:37:00] that support housing stability, [3:37:00] homelessness prevention and [3:37:01] the basic infrastructure that [3:37:02] residents rely on. [3:37:05] They genuine win win for San [3:37:06] Diego and for San Diegans. [3:37:10] The overwhelming majority of [3:37:11] San Diegans will never pay this [3:37:11] tax because it does not apply [3:37:12] to primary homes. [3:37:15] It does not apply to long term [3:37:15] rentals. [3:37:16] It targets a narrow category [3:37:20] homes left vacant for most of [3:37:20] the year. [3:37:21] Again in the middle of a [3:37:24] housing shortage. [3:37:25] I want to be explicit for [3:37:26] the record I did this in [3:37:26] committee. [3:37:27] I'll do it again on a legal [3:37:30] question that's come up in [3:37:30] recent weeks regarding [3:37:31] the Ellis Act. [3:37:34] This measure does not require [3:37:35] anyone to rent their home. [3:37:36] It does not compel anyone to [3:37:36] remain in the rental business. [3:37:40] Nothing in this proposal [3:37:40] changes The Ellis Act, changes [3:37:41] eviction law or creates any [3:37:44] right for the city or for [3:37:45] anyone else to occupy. [3:37:48] Private property owners retain [3:37:49] the full right to keep a home [3:37:50] vacant if they choose. [3:37:53] What this measure does do is [3:37:54] straightforward It sets an [3:37:57] objective standard vacant for [3:37:58] more than 180 days and says [3:37:58] that if an owner chooses to [3:37:59] keep a residential property [3:38:02] vacant beyond that threshold [3:38:03] during a housing shortage, that [3:38:07] choice has a real public cost [3:38:08] and a tax applies that is [3:38:08] illegitimate exercises exercise [3:38:11] of the city's taxing authority [3:38:12] and is meaningfully different [3:38:13] from what San Francisco tried [3:38:13] to do. [3:38:17] San Francisco's measures would [3:38:18] strip San Francisco's measure [3:38:19] was structured in a way that [3:38:19] courts found effectively [3:38:22] compelled rental of specific [3:38:22] residential buildings. [3:38:23] Ours is not that our scope is [3:38:23] different. [3:38:28] It's more carefully crafted and [3:38:32] it exists in its exclusions and [3:38:32] modeled closely on a measure [3:38:33] which has operated successfully [3:38:36] for over two years without a [3:38:37] successful legal challenge. [3:38:40] So while amateur legal analysts [3:38:41] are throwing spaghetti at [3:38:41] the wall because they know [3:38:42] the people are broadly [3:38:45] supportive of this proposal, [3:38:46] the city's attorney's office [3:38:46] with outside expert counsel has [3:38:50] reviewed this carefully and I'm [3:38:51] very confident in [3:38:55] the foundation we built. [3:38:56] I want to be clear about how [3:38:56] carefully the rest of this [3:38:57] proposal proposal has been put [3:38:58] together. [3:38:59] We work closely with [3:39:00] the Treasurer's office and with [3:39:00] people in the community to [3:39:04] create a measure that is [3:39:04] implementable. [3:39:05] We took into account real life [3:39:08] circumstances where a tax [3:39:09] should not apply and I hope [3:39:10] that some of the opponents who [3:39:13] spoke today listen to this [3:39:14] because some of the concerns [3:39:18] were raised are not actually [3:39:19] you're going to be exempt from [3:39:21] this tax if a family member is [3:39:22] living in a second home, that [3:39:23] home should not be taxed and it [3:39:23] won't. [3:39:26] If a loved one has passed away [3:39:27] and the family is navigating [3:39:28] probate or cannot yet afford [3:39:31] needed repairs, that home [3:39:31] should not be taxed and it [3:39:32] won't be. [3:39:33] If someone is deployed in [3:39:35] the military their home should [3:39:36] not be taxed and it won't be. [3:39:36] These exclusions exist because [3:39:40] good policy has to be sensible [3:39:40] and fair. [3:39:41] While staying focused on [3:39:41] the goal getting homes back [3:39:45] into use for San Diegans who [3:39:46] need them My priority is San [3:39:47] Diego families its young [3:39:50] professionals. [3:39:50] It's the public workers who [3:39:51] want to live in this city. [3:39:52] This is one piece of a broad [3:39:55] strategy to lower the cost of [3:39:55] living and expand opportunity [3:39:56] in the city. [3:39:59] The opportunity before us today [3:40:00] is straightforward. [3:40:01] We can act or we can leave [3:40:01] intact a system where thousands [3:40:04] of homes sit empty while [3:40:05] everyday people work their off [3:40:08] just to afford a place to live [3:40:09] . [3:40:10] With that I move I move staff [3:40:13] recommendation and authorize [3:40:14] myself Councilmember Isla [3:40:15] Rivera to sign and file a [3:40:15] written ballot argument in [3:40:18] favor of the ballot measure for [3:40:19] inclusion in the voter [3:40:19] pamphlet. [3:40:20] Thank you Council PRESIDENT. [3:40:20] All right. [3:40:23] Thank you, Council members. [3:40:24] >> So we do have a motion to [3:40:25] move the staff recommendation [3:40:27] that it's shown on the screen [3:40:28] And we'll go next to Council [3:40:33] PRESIDENT Pro Tem Lee Thank you [3:40:33] Council PRESIDENT And thank you [3:40:34] council member Ella Rivera for [3:40:37] bringing this proposal forward [3:40:37] . [3:40:38] We all know that San Diego is [3:40:38] facing a housing crisis. [3:40:41] We need more homes as part of [3:40:42] that housing supply. [3:40:43] Yet many homes that could house [3:40:47] San Diegans are sitting empty, [3:40:48] built, ready but unused while [3:40:51] families struggle to afford [3:40:52] rent. [3:40:52] First time homebuyers struggle [3:40:53] to compete. [3:40:56] And young people who grew up [3:40:57] here wonder whether they'll [3:40:57] ever be able to stay. [3:41:00] That disconnect is what this [3:41:01] measure is intended to address. [3:41:02] At its core, this proposal is [3:41:06] about fairness and responsible [3:41:06] use of housing in a city where [3:41:07] housing is scarce. [3:41:10] Homes should be lived in, [3:41:11] rented out or sold to someone [3:41:15] who will live in them. [3:41:15] What this measure says is [3:41:16] simple If someone chooses to [3:41:19] keep a home empty then they [3:41:20] should contribute a little more [3:41:21] to the community that makes [3:41:21] that investment possible. [3:41:25] If someone can afford to own a [3:41:26] second home and not use it for [3:41:29] any purpose they can absolutely [3:41:30] afford to pay this tax and [3:41:34] should importantly this [3:41:35] proposal still leaves [3:41:35] the choice with the homeowner. [3:41:39] A homeowner can continue to [3:41:40] leave the home empty and pay [3:41:40] the tax. [3:41:41] Or they can put the home to use [3:41:44] by living in it, renting it out [3:41:45] or selling it. [3:41:48] This is why I view this as a [3:41:49] very reasonable and targeted [3:41:49] approach. [3:41:50] It does not impact as [3:41:54] Councilmember Isla Rivera [3:41:54] mentioned, any primary [3:41:55] residences or renters and is [3:41:58] focused specifically on [3:41:59] the roughly 5000 homes that [3:42:00] already file an exemption to [3:42:03] the city's rental unit business [3:42:04] tax and identify themselves as [3:42:07] a second home or vacation home. [3:42:08] That list already exists [3:42:12] doesn't require some audit. [3:42:12] Many of these are likely owned [3:42:16] by people who live elsewhere [3:42:17] and are not part of our local [3:42:18] housing supply. [3:42:21] The measure also includes [3:42:22] thoughtful exemptions for [3:42:22] homeowners facing unique [3:42:26] circumstances such as those in [3:42:27] long term care or on military [3:42:27] deployment. [3:42:28] And I also want to thank [3:42:28] council member Ella Rivera for [3:42:31] taking our amendment a [3:42:31] committee to ensure that [3:42:32] the measure does not impact [3:42:35] newly built housing. [3:42:36] >> We appreciate the report [3:42:37] provided by the aba which helps [3:42:37] us to understand how this [3:42:40] measure compares with similar [3:42:41] policies adopted in other [3:42:41] cities. [3:42:42] And the end result is a range [3:42:45] of revenue expectations that I [3:42:46] believe gives voters a [3:42:50] realistic understanding of what [3:42:50] this measure can generate. [3:42:51] That revenue MAY be modest but [3:42:55] at a time when the city faces [3:42:55] ongoing budgetary challenges, [3:42:56] every responsible source of [3:42:56] revenue helps support [3:43:00] the services that our residents [3:43:01] rely on. [3:43:01] Ultimately, today's action is [3:43:05] about giving voters [3:43:06] the opportunity to weigh in on [3:43:06] a focused and reasonable [3:43:07] proposal. [3:43:10] I believe this is a thoughtful [3:43:11] step for us to place before [3:43:12] the voters again in a housing [3:43:14] crisis. [3:43:15] Homes should be for living in [3:43:16] not sitting empty. [3:43:20] And for these reasons I'm proud [3:43:21] to support this measure and I'm [3:43:24] happy to second the motion. [3:43:25] All right. [3:43:25] So with that we have a motion [3:43:26] by council member Ella Rivera [3:43:28] and a second by Council [3:43:29] PRESIDENT Pro Tem Lee to move [3:43:33] the staff recommendation with [3:43:34] the additional language as [3:43:38] shown on the screen. [3:43:39] All offer a few comments [3:43:43] because I don't see anybody [3:43:43] else on the lines of [3:43:47] Councilmember Campos. [3:43:52] Thank you Council PRESIDENT And [3:43:53] thank you to the members of [3:43:54] the public who came in at Rules [3:43:58] Committee and today to express [3:43:58] their views. [3:44:01] And I appreciate the District [3:44:02] nine staff for the work in [3:44:03] bringing back a revised [3:44:03] proposal. [3:44:04] And I thank them for excluding [3:44:07] tier three and Tier four short [3:44:07] term vacation rentals. [3:44:08] And the definition of an empty [3:44:08] home. [3:44:11] You know, I'm all ears on ideas [3:44:12] that could potentially put [3:44:13] homes on the market. [3:44:16] And it seems that this proposal [3:44:17] certainly would. [3:44:17] And when this item came to [3:44:21] the Rules Committee last week, [3:44:22] I asked for one thing to help [3:44:22] make my decision at full [3:44:26] council a robust legal memo [3:44:26] analyzing the taxes ability to [3:44:27] withstand a lawsuit. [3:44:30] I have not received it. [3:44:31] It is hard to believe that [3:44:32] after months of developing [3:44:35] the proposal with significant [3:44:36] similarities to a version [3:44:38] that's been stopped in court in [3:44:39] 2024 that there is no memo to [3:44:39] share. [3:44:43] When we have tight lines, tight [3:44:44] timelines as we do today with [3:44:45] less than one week between [3:44:48] committee and council, we [3:44:49] should rely on the analysis not [3:44:53] just the conclusion to make [3:44:53] responsible decisions. [3:44:54] Councils past and present have [3:44:58] relied on recommendations that [3:44:59] ended up wasting staff time and [3:44:59] taxpayer dollars without [3:45:03] demanding the analysis first. [3:45:04] I won't make that same mistake. [3:45:08] Let me be clear that our deputy [3:45:09] city attorneys are competent [3:45:09] and diligent and dedicated [3:45:10] public service servants working [3:45:12] on the most important issues [3:45:13] facing our city. [3:45:13] i know this personally because [3:45:17] I have worked with them for. [3:45:20] As a council member for over [3:45:21] five years and as one of them [3:45:22] for two and a half years before [3:45:22] that. [3:45:26] But I weigh the potential legal [3:45:26] viability and risk together [3:45:30] with the net public benefit and [3:45:31] the decisions I make no matter [3:45:32] how compelling or urgent [3:45:35] the motivation behind it is. [3:45:36] And certainly there is an [3:45:37] urgent and compelling [3:45:40] motivation. [3:45:41] I'm hesitant to vote for this [3:45:41] today because I have not [3:45:44] received the information I need [3:45:45] to be confident in that [3:45:46] decision and confidence in our [3:45:50] decisions is something [3:45:50] the public truly lacks these [3:45:51] days. [3:45:54] I wanted simple information to [3:45:55] make the best decision for my [3:45:56] constituents and I cannot in [3:45:59] good faith vote yes today on [3:46:00] the reasonable request I made [3:46:00] last week has not been [3:46:01] fulfilled. [3:46:04] As stated earlier, there is so [3:46:04] much at stake. [3:46:09] I agree. [3:46:09] And that's why moving forward [3:46:10] without the final piece of work [3:46:13] and perhaps the most [3:46:14] consequential piece of work [3:46:15] being done is inadvisable. [3:46:20] Thank you. [3:46:21] >> All right. [3:46:21] Thank you. [3:46:22] Councilmember Camp here for [3:46:25] your comment. [3:46:26] Again, not seeing anybody else [3:46:30] on the lights. [3:46:30] >> Okay. [3:46:31] Well, I'll give you that extra [3:46:34] time. [3:46:36] Let me offer a few comments of [3:46:40] my own and then maybe ask a [3:46:40] couple of questions. [3:46:44] So I do want to thank [3:46:45] Councilmember Gil Rivera and [3:46:49] your team for the good work in [3:46:49] bringing this forward. [3:46:50] I want to thank the aba for [3:46:54] your in-depth analysis which [3:46:54] this Council relies on and [3:46:59] the candor you described in [3:46:59] terms of trying to frame how [3:47:03] much from purely a revenue [3:47:04] point of view this could [3:47:04] generate. [3:47:08] I'm a little frustrated by [3:47:09] those who throw the Bible under [3:47:10] the bus when they don't like [3:47:14] the numbers and then tell us to [3:47:15] follow the debate carefully [3:47:15] when they do like the numbers. [3:47:19] But I do appreciate the good [3:47:19] work you've done and the very [3:47:20] thoughtful way in which you've [3:47:23] approached it And I know [3:47:24] there's more work to be done. [3:47:25] Yeah, I have to get on to [3:47:25] the ballot. [3:47:28] I want to thank the city [3:47:28] attorney's office for the good [3:47:32] work that they did in helping [3:47:33] to craft this language. [3:47:37] And the one thing that I'm [3:47:41] assured of is that the city [3:47:42] attorney's office would not put [3:47:42] something in front of this [3:47:46] council for a final vote that [3:47:46] not have had not been fully [3:47:50] vetted in light of case law, [3:47:51] federal law, local law, state [3:47:55] law and litigation. [3:47:56] I also want to thank all [3:47:57] the members of the public [3:48:00] whatever side you are on. [3:48:01] You brought compelling [3:48:05] arguments both for and against [3:48:06] this measure. [3:48:06] You were respectful to one [3:48:10] another which as counsel [3:48:11] PRESIDENT I certainly [3:48:11] appreciate and I hear [3:48:15] the passion in your voices. [3:48:19] We face many challenges as a [3:48:19] city and two of our most [3:48:20] pressing are housing and our [3:48:24] structural budget deficit. [3:48:24] The Empty Homes Initiative is [3:48:25] not a silver bullet in itself [3:48:29] To solve these challenges we [3:48:29] know there isn't one solution [3:48:30] to make everything better. [3:48:31] But let me be clear Every [3:48:34] action we can take small and [3:48:34] targeted big and bold is [3:48:35] important. [3:48:38] This measure has the potential [3:48:39] to move us in the right [3:48:39] direction by generating new [3:48:42] revenue to fund city services, [3:48:43] turning empty houses into homes [3:48:44] for San Diego through some [3:48:47] combination of the two and [3:48:47] however this mix plays out. [3:48:48] This is a good measure for San [3:48:52] Diego and for San Diego. [3:48:53] I also want to thank Council [3:48:56] member Hill over here and his [3:48:56] team for moving this proposal [3:48:57] forward. [3:48:57] Over the past several months [3:49:01] for listening to stakeholders [3:49:02] right sizing the initiative to [3:49:03] the version we see today, I [3:49:06] also want to put this measure [3:49:06] in proper context because I [3:49:07] heard a number of things that [3:49:10] are a little bit at odds with [3:49:11] reality. [3:49:12] The fact is we all operate in a [3:49:15] way driven by state, local and [3:49:15] federal law. [3:49:20] We also make decisions based on [3:49:20] the tax code, the tax code, [3:49:25] the federal and state tax codes [3:49:25] is the very essence of driving [3:49:26] the public's investments [3:49:29] investments and financial [3:49:30] decisions incentivizing their [3:49:30] behavior. [3:49:34] The federal tax code ironically [3:49:35] in this conversation for [3:49:39] example literally incentivizes [3:49:40] empty second homes. [3:49:44] How the tax code allows [3:49:44] the owner to deduct mortgage [3:49:45] payments, deduct a portion of [3:49:49] property tax. [3:49:49] This measure has [3:49:50] the opportunity to level [3:49:54] the playing field for the rest [3:49:54] of us. [3:49:55] However, the Empty Homes [3:49:59] initiative plays out is in [3:49:59] the hands of the empty [3:50:00] homeowners. [3:50:00] It is their choice. [3:50:01] Pay the tax. [3:50:04] Change Behavior. [3:50:04] Offer their units for rent or [3:50:05] sell the property. [3:50:06] That's their choice. [3:50:11] >> Many of those owners of [3:50:12] empty homes tell us they [3:50:16] operate in a certain way. [3:50:17] This MAY be an incentive to [3:50:20] slightly change how you operate [3:50:21] as so many other laws and tax [3:50:26] code provisions compel us to do [3:50:26] so. [3:50:27] >> Make no mistake every home [3:50:28] that comes in the market for [3:50:31] rent or for sale is something [3:50:31] to celebrate whether it is high [3:50:32] end or workforce housing. [3:50:35] Every new unit that is [3:50:35] available to San Diego is a [3:50:36] win. [3:50:36] This measure could bring [3:50:40] hundreds of empty homes back [3:50:40] into the marketplace making [3:50:41] more homes available to San [3:50:45] Diego residents. [3:50:45] That's a win at any scale. [3:50:46] This measure could generate new [3:50:50] revenue. [3:50:50] Even the low end estimate of [3:50:51] what I hear now is 9 million [3:50:54] per year will be a significant [3:50:54] contribution towards our [3:50:55] structural deficit. [3:50:59] That's a win at any scale And [3:50:59] if these homes are flipped to [3:51:03] short term rentals, well that's [3:51:04] new Totti that flows to [3:51:04] the city budget as [3:51:05] Councilmember Campo mentioned [3:51:08] at committee and that's a win [3:51:09] as well. [3:51:09] So in closing, however, empty [3:51:13] homes initiative plays out [3:51:13] keeping that empty home empty [3:51:18] and paying the tax. [3:51:18] Changing the owners behavior [3:51:19] based on the language of [3:51:23] the ballot measure. [3:51:23] Converting it to rental [3:51:24] converting it to a short term [3:51:25] rental or selling it no matter [3:51:27] what choices owners make. [3:51:28] It is a win for San Diego and a [3:51:29] win for San Diego. [3:51:32] So I will be voting to support [3:51:33] the empty homes tax on the JUNE [3:51:37] ballot. [3:51:38] Sitting up here as council [3:51:38] PRESIDENT. [3:51:41] I hear a lot of things that I [3:51:42] have to decide what I'm going [3:51:42] to talk about. [3:51:43] I'm a little bit disturbed that [3:51:46] there is an implication in here [3:51:47] that the city attorney has not [3:51:48] responded to a committee [3:51:52] members request for a legal [3:51:52] interpretation. [3:51:56] Now you would never ask your [3:51:57] personal attorney to tell [3:51:58] the world what your legal [3:52:01] strategy is. [3:52:01] That would be foolhardy And I [3:52:02] think everybody in this room [3:52:02] knows about it. [3:52:05] It was very uncomfortable to [3:52:06] listen to the questions at [3:52:07] Rules Committee that [3:52:10] essentially was asking the city [3:52:11] attorney to resuscitate. [3:52:15] That's not the right word. [3:52:15] To repeat what their legal [3:52:16] strategy is in defending this [3:52:17] ballot measure. [3:52:20] So I'm very concerned about [3:52:21] the idea that is being [3:52:21] represented in this chambers [3:52:24] that the city attorney has done [3:52:25] nothing since committee. [3:52:26] They have done things in [3:52:30] the best action that a city [3:52:30] attorney should provide in [3:52:31] terms of informing council [3:52:35] members of a legal basis for a [3:52:35] measure. [3:52:36] You MAY disagree with that. [3:52:36] That's okay. [3:52:40] You can disagree with it. [3:52:40] You can have your own opinion. [3:52:41] We have attorneys on this [3:52:45] council that MAY have a [3:52:45] different interpretation. [3:52:46] I'm okay with that. [3:52:48] But to represent to this public [3:52:49] that we have received no legal [3:52:54] briefings on this measure is [3:52:54] just frankly false. [3:52:59] And I'm really disappointed by [3:52:59] that. [3:53:00] I'll leave it at that. [3:53:00] But I will be supporting [3:53:02] the measure. [3:53:03] >> And we'll go next to council [3:53:07] member Yvonne Wolpert. [3:53:08] Thank you very much for [3:53:09] the work and the presentation [3:53:12] to council in the Oval Office. [3:53:13] Thank you to everyone who has [3:53:14] weighed in on this measure. [3:53:17] I know it's been a lot of time [3:53:18] and effort and thoughtfulness. [3:53:19] I've heard from many of my [3:53:21] residents not only in District [3:53:22] five or across the city [3:53:23] actually who have varying [3:53:26] opinions on this on this ballot [3:53:27] measure And some of [3:53:31] the concerns that I did hear [3:53:32] from residents are one not only [3:53:33] we can't afford to live here my [3:53:36] daughter became a teacher and [3:53:37] she can't afford to stay in [3:53:39] the city To folks who have a [3:53:40] second condo in their parents [3:53:41] come in to do childcare for [3:53:44] their grandchildren and that's [3:53:45] what they use it for. [3:53:46] And so I've heard from all [3:53:46] sorts of folks on this and I [3:53:50] did have a couple of concerns [3:53:50] that I'm glad have been [3:53:51] addressed including our [3:53:52] military service members. [3:53:54] I have quite a few members of [3:53:55] the military who live right [3:53:55] outside of Miramar in my [3:53:59] district and I'm glad to see [3:54:00] that if they are deployed which [3:54:00] is completely out of their [3:54:03] control especially given [3:54:04] the national events going on [3:54:05] right now, this empty homes tax [3:54:08] would not apply to their home [3:54:08] while they're deployed. [3:54:13] That's correct. [3:54:14] >> Thank you Council everyone. [3:54:14] Wolpert That's correct with [3:54:15] the exclusion. [3:54:17] Okay. [3:54:17] Thank you. [3:54:18] And I also have heard from many [3:54:23] of my constituents are they own [3:54:23] a second home but I have family [3:54:26] members that live in that [3:54:27] second home and they MAY not [3:54:28] have a formal lease for [3:54:28] example. [3:54:30] Their children MAY come back [3:54:31] from college for the summer and [3:54:32] in the fall season and they are [3:54:35] here more than 183 days a year [3:54:39] but they don't have a lease [3:54:39] with their kids. [3:54:40] Maybe they should Maybe their [3:54:41] kids are actually you know, [3:54:41] should learn how to get into [3:54:44] leases But my understanding is [3:54:45] that there is a rental unit [3:54:45] business tax exemption that's [3:54:49] available for individuals in [3:54:50] the circumstance where a family [3:54:50] is using the home so that they [3:54:54] can show what they're doing [3:54:55] with their home. [3:54:56] It's not an actual empty home [3:54:56] that their children or their [3:54:57] relatives are in it. [3:55:00] So can anyone from your office [3:55:00] or the city treasurer or anyone [3:55:01] please speak to the process and [3:55:04] what's involved in exempting a [3:55:05] property or that has their own [3:55:05] family staying in their second [3:55:06] home? [3:55:09] Thank you. [3:55:09] I can start us off and if [3:55:10] the Treasurer's office wants to [3:55:11] chime in they're more than [3:55:14] welcome to But you're right in [3:55:18] the r u b t which owners of [3:55:18] residential units they pay for [3:55:23] the rental unit business tax. [3:55:23] There's an exemption that is [3:55:24] available for I forget what [3:55:27] it's called in the rfp but [3:55:28] there is an exemption for [3:55:28] family members living on [3:55:32] the property even if they don't [3:55:33] have a lease even if they're [3:55:34] paying less than the cost to [3:55:34] operate the property And we did [3:55:39] copy that same exemption [3:55:40] practically into the into our [3:55:44] empty homes tax as well. [3:55:44] Okay. [3:55:45] Got it. [3:55:45] Understood. [3:55:49] I don't know if the city [3:55:50] Treasurer wants to weigh in on [3:55:51] that now or later but happy we [3:55:54] are residents will want to know [3:55:55] what the process is to make [3:55:55] sure that they are exempt from [3:55:56] the tax If they do meet [3:55:59] the qualifications of having [3:56:06] their own family in their home [3:56:06] . [3:56:07] I have a link to I know I'm [3:56:08] the business tax program [3:56:08] manager with the city [3:56:09] Treasurer's office So yes we do [3:56:12] have a current exemption where [3:56:13] the family member if a family [3:56:14] was living in the property we [3:56:18] have the exemption from we [3:56:18] require to some certain [3:56:23] documents for example like a [3:56:24] proof of residence which could [3:56:24] be like a bill utility bill. [3:56:28] There's also the amount that [3:56:29] that the property is being [3:56:29] rented for. [3:56:34] So that's we rented that land [3:56:35] and in their owners owner's [3:56:38] expense So if it's for a profit [3:56:38] then it's not exempt. [3:56:42] But there's a specific formula [3:56:43] we use to exempt the homes and [3:56:47] that will continue to run with [3:56:47] it very quickly. [3:56:48] And now we're talking about [3:56:51] multiple exemptions at the same [3:56:52] time. [3:56:52] So to make sure so [3:56:53] the exemption that was [3:56:56] referenced there and and [3:56:56] the Treasurer can correct me if [3:56:57] I'm wrong there they're [3:57:01] referring to the exemption from [3:57:02] the rental business rental unit [3:57:02] business tax, right? [3:57:05] So we've got the exemptions and [3:57:06] exemptions for this but [3:57:11] the nuances of being able to be [3:57:12] exempt from the rental business [3:57:15] tax that we're just spoken to [3:57:16] as well. [3:57:16] >> Okay. [3:57:17] Understood. [3:57:17] Thank you. [3:57:20] I appreciate that. [3:57:21] Got it. [3:57:22] So this is that I just read it [3:57:23] knowing that if there is a [3:57:25] homeowner who does have their [3:57:26] children coming home for [3:57:27] the summer or you know, parents [3:57:27] coming in to help a grandchild [3:57:32] care that will they will be [3:57:32] able to use the existing [3:57:33] exemptions and lohud to make [3:57:35] sure that they're exempt from [3:57:35] this tax when their home is [3:57:36] literally empty. [3:57:37] If it is empty you'd be a [3:57:39] different discussion. [3:57:40] Okay, Thank you. [3:57:41] I appreciate that very much and [3:57:44] I appreciate everyone who has [3:57:45] weighed in on this since There [3:57:45] are people who have very [3:57:46] different opinions back and [3:57:49] forth. [3:57:50] But you know, we are in [3:57:51] the middle of a real housing [3:57:54] crisis here in San Diego and I [3:57:54] do believe that big policy [3:57:55] decisions like this deserve [3:57:59] public input And I do support [3:58:00] giving voters a chance to weigh [3:58:00] in on the empty homes ballot [3:58:03] measure. [3:58:04] I've heard from too many local [3:58:05] San Diego families who are [3:58:08] struggling to find housing that [3:58:09] they can afford and it's [3:58:12] reasonable to ask whether a [3:58:13] vacant second home should be [3:58:14] part of that conversation. [3:58:15] But I do appreciate that this [3:58:17] ballot measure includes [3:58:18] important protections for other [3:58:21] San Diego families who are [3:58:21] using their second homes to [3:58:22] house their own family or to [3:58:26] house their own parents who are [3:58:27] coming in to make sure they can [3:58:28] care for grandchildren other [3:58:28] things. [3:58:31] So since it would not apply to [3:58:32] homes occupied by family [3:58:32] members or properties that are [3:58:33] vacant through no fault of [3:58:36] the owner including military [3:58:36] deployment disaster anything or [3:58:41] inheriting a home suddenly due [3:58:41] to a death in the family. [3:58:42] I do think that this was [3:58:46] crafted in a way to make sure [3:58:46] that it only applies to truly [3:58:47] vacant homes and this is about [3:58:50] transparency and democracy And [3:58:51] I believe that letting [3:58:52] the voter decide how we address [3:58:55] our housing challenges is [3:58:55] appropriate and right. [3:58:56] And I think that the goals of [3:58:57] this are very important And so [3:59:01] I will be supporting it today. [3:59:01] Thank you. [3:59:02] All right. [3:59:02] Thank you. [3:59:03] Council member Velma Alpert. [3:59:04] We'll go back to Council member [3:59:04] Campion. [3:59:05] Thank you. [3:59:06] Council PRESIDENT Respectfully [3:59:06] sir, you and I are both bound [3:59:10] by the attorney client [3:59:10] privilege as members of this [3:59:11] body regarding the legal advice [3:59:15] we are given So I'm unable to [3:59:16] respond to your assertion that [3:59:18] you just made without violating [3:59:19] that privilege. [3:59:24] >> I'll just repeat the line I [3:59:28] said in my comments We should [3:59:29] rely on the analysis not just [3:59:31] the conclusions to make [3:59:36] responsible decisions. [3:59:37] >> All right. [3:59:38] I appreciate that clarification [3:59:42] Not seeing anybody else but I'm [3:59:42] sorry just on my very briefly [3:59:49] my apologies Certainly the city [3:59:50] attorney as the deputy city [3:59:50] attorney is on this case As I [3:59:54] pointed out, are diligent, [3:59:58] competent and dedicated. [4:00:03] Just to reiterate, I asked for [4:00:04] a robust memo that went into [4:00:04] some depth. [4:00:08] You can see my comments at [4:00:09] rules as to what that was [4:00:09] asking for. [4:00:10] That is what I have not [4:00:10] received. [4:00:16] Thank you. [4:00:16] Okay. [4:00:16] Fair enough. [4:00:17] I'm tired of reading things in [4:00:18] the paper that are not what we [4:00:20] meant but how they get [4:00:21] interpreted and that's [4:00:22] the sandbox that we're all [4:00:22] stuck in. [4:00:25] So I appreciate your [4:00:26] clarification. [4:00:26] So with that I don't see [4:00:27] anybody else in the lights. [4:00:30] We have a motion by council [4:00:31] member Ella Rivera that moves [4:00:35] the staff recommendation with [4:00:36] the authorization for himself [4:00:37] council member Olivia to sign [4:00:39] and file a written ballot [4:00:40] argument in favor of the ballot [4:00:41] measure for inclusion in [4:00:44] the voter pamphlet and was [4:00:45] seconded by Council PRESIDENT [4:00:45] Pro Tem Lee. [4:00:49] Clerk Please call the roll I'm [4:00:50] sorry the voting system Please [4:01:02] cast your vote that passes 8 to [4:01:03] 1 with Councilmember Campos [4:01:04] voting no Thank you Council [4:01:04] PRESIDENT All right. [4:01:07] >> Thank you. [4:01:13] And with that final vote and [4:01:13] final action we will now [4:01:14] adjourn council to the next [4:01:17] regularly scheduled council [4:01:18] meeting on Monday MARCH 9th, [4:01:23] 2026 at 10 A.M..