Transcript
SOURCE TRANSCRIPT
This transcript is downloaded from the source you provided but we haven't reviewed it for accuracy. Treat it as a starting point, not a verbatim record. You can also request an AI-transcription of the audio file with the button to the left.
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[15:23]
and
[16:32]
and and I will answer.
[16:32]
All right.
[16:33]
Good morning.
[16:33]
I will now call the City
[16:37]
council meeting of Monday, JUNE
[16:38]
22nd 2026 to order that
[16:38]
the clerk please call the Roll
[16:41]
Council member Campbell your
[16:48]
government Council member
[16:49]
Whitburn here Council Member
[16:53]
Foster Council Member Von
[16:54]
Wilpert Council Member Council
[16:54]
PRESIDENT Pro Tem Lee here
[17:00]
Council Member Can't be out
[17:00]
here Council Member Moreno
[17:06]
Council Member Julio Rivera and
[17:06]
Council PRESIDENT LaCava
[17:06]
present.
[17:07]
Also attending the meeting are
[17:12]
City Attorney Heather Ferber,
[17:13]
independent budget analyst
[17:18]
Jillian and Elina of Council
[17:18]
Affairs advisor in the mayor's
[17:19]
office.
[17:19]
But as I learned myself here
[17:23]
Deputy City Clerk Kevin Smith
[17:24]
All right, thank you Deputy
[17:24]
Clerk a quorum is now present.
[17:25]
We will begin this morning with
[17:30]
the invocation by Deputy Clerk
[17:30]
Smith followed with an
[17:31]
acknowledgment and the Pledge
[17:32]
of Allegiance let by council
[17:35]
member Campbell Brandt.
[17:42]
Those who hold office in
[17:42]
the city a spirit of wisdom,
[17:43]
charity and justice that were
[17:47]
steadfast purpose They MAY
[17:48]
faithfully serve in their
[17:48]
offices to promote
[17:53]
the well-being of all people.
[17:53]
We respectfully acknowledge
[17:59]
that the communication or
[18:00]
the original inhabitants of
[18:01]
the Unceded land now known as
[18:06]
San Diego Despite enduring
[18:06]
the horrors of genocide and
[18:07]
colonization, the community
[18:11]
spirit remains unbroken.
[18:12]
We honor the resilience of
[18:13]
their ancestors who fought to
[18:17]
protect their culture and land
[18:18]
and today they carry their
[18:18]
legacy forward ensuring that
[18:23]
their traditions continue to
[18:24]
thrive and gratitude and
[18:25]
strength We stand with Cooma,
[18:29]
our nation connected to our
[18:30]
past and committed to a
[18:30]
thriving future.
[18:36]
We place the flag, place your
[18:37]
hand over your heart and let's
[18:41]
begin by going to the flag
[18:42]
United States of America and to
[18:42]
the Republic for which it
[18:46]
stands one nation under GOD,
[18:47]
indivisible with liberty and
[18:52]
justice for all.
[18:53]
>> All right With that Deputy
[18:54]
clerk, please go over how
[18:58]
the public can offer their
[18:59]
testimony.
[18:59]
>> Thank you, Council
[19:00]
PRESIDENT.
[19:00]
I will now now highlight
[19:05]
the slide on the screen that
[19:05]
reviews how the public can
[19:06]
offer their public testimony
[19:07]
during today's meeting.
[19:10]
If you are in person please
[19:11]
complete a speaker slip located
[19:12]
at the entrance of chambers and
[19:13]
bring it to the front of
[19:17]
the room No further in-person
[19:18]
testimony will be taken once
[19:18]
the Council begins Virtual
[19:19]
testimony for better meeting
[19:23]
management purposes each
[19:23]
speaker will have one minute
[19:24]
per item per person.
[19:27]
If you would like to speak on
[19:28]
three or more items you will
[19:29]
have a maximum of three
[19:29]
minutes.
[19:34]
All right.
[19:35]
Thank you Deputy Clerk And as a
[19:36]
reminder non agenda public
[19:36]
comment which will be taken at
[19:37]
the end of the session with
[19:39]
the opportunity to speak freely
[19:40]
on items within city
[19:40]
jurisdiction items on
[19:41]
the docket we encourage
[19:45]
the public to offer their
[19:46]
testimony to inform the Council
[19:47]
members of their consideration
[19:51]
or deliberations on that docket
[19:52]
item.
[19:52]
So with that Deputy Clerk
[19:53]
please read the closed session
[19:58]
items into the record.
[19:59]
Conference with Legal Counsel
[20:00]
Existing litigation pursuant to
[20:03]
California Government Code
[20:04]
Section 5495 6.91 c.
[20:10]
S one Sandra Silva versus City
[20:11]
of San Diego at all the to
[20:11]
repeat versus city of San Diego
[20:12]
c.
[20:15]
S three Maria del Rosario Nunez
[20:15]
Munoz versus City of San Diego
[20:16]
c.
[20:21]
S four Jesse Torres versus
[20:22]
Civil Service Commission of
[20:22]
the city of San Diego c.
[20:26]
S five Denise Wadsworth at all
[20:27]
versus City of San Diego at
[20:27]
all.
[20:29]
All right.
[20:30]
>> With that please proceed
[20:35]
with public comment.
[20:36]
>> Thank you.
[20:37]
We will begin with in-person
[20:42]
public comment.
[20:43]
Jacob Lewis Edwards please come
[20:43]
forward.
[20:47]
You are requested to speak on c
[20:48]
us one c us two and see us
[20:49]
three.
[20:49]
>> You'll have three minutes to
[20:54]
speak.
[20:54]
Thank you members of our city
[21:00]
council and allow me to speak
[21:00]
in front of you.
[21:01]
I've spoken from you about many
[21:06]
things and these items include
[21:06]
lawsuits to the city of reading
[21:12]
slips and falls and such.
[21:12]
i'm going to speak upon myself
[21:13]
now.
[21:14]
I usually speak upon for what
[21:18]
is going on in a general sense.
[21:19]
I spoke to you about how our
[21:24]
cyber networks were hijacked
[21:25]
going around eight years ago.
[21:25]
My uncle his possession of
[21:30]
the dhs over our country
[21:30]
cybersecurity networks
[21:31]
hijacked.
[21:31]
I'm sorry to interrupt.
[21:32]
Can you speak to the closed
[21:33]
session items that you
[21:37]
identified as opposed to a now?
[21:38]
Yes, I am getting to that, sir.
[21:41]
I'm getting to that And that
[21:42]
handful of federal field agents
[21:42]
assisted the mob in hijacking
[21:47]
our federal government agencies
[21:48]
flooding terrorized along
[21:48]
the way by them pestered,
[21:49]
tormented, harassed, harassed
[21:52]
any trace of anything I've gone
[21:53]
through wiped out and it
[21:59]
continues to this day now is
[22:00]
prevented that until I get into
[22:05]
a shelter if I am able to get
[22:05]
into a shelter and that is here
[22:06]
in the city.
[22:09]
It's set up there on customer
[22:10]
tormented, harassed, terrorized
[22:10]
people, given assignments
[22:15]
within the shelter to hurt me.
[22:16]
And it all comes from federal
[22:16]
activity currently and
[22:21]
prevented from getting into a
[22:21]
shelter.
[22:22]
I sleep at the front door here
[22:23]
at the Civic Center to stay
[22:26]
safe under a camera.
[22:27]
But I go through even here I
[22:32]
wouldn't sue the city of San
[22:33]
Diego.
[22:34]
I love this city but I I'd like
[22:34]
to bring to your attention I
[22:38]
mean I could file a lawsuit but
[22:38]
I'm not but I'm going to bring
[22:39]
it to your attention.
[22:43]
Just two nights ago sleeping
[22:44]
right here at the front door.
[22:44]
Three guys nice designer jeans,
[22:49]
nice shoes And it was overnight
[22:50]
standing right over me loudly
[22:50]
conversating being rude.
[22:54]
It was very unruly over
[22:55]
somebody trying to sleep.
[23:00]
I mentioned that to them so
[23:01]
please have some consideration.
[23:01]
And I mentioned how federal
[23:05]
field agents who terrorize me
[23:06]
will set people up to do this.
[23:06]
I'm not saying that's the case
[23:10]
but it sure seems so.
[23:11]
They got very angry at me.
[23:12]
One of them pulls his belt off,
[23:16]
stands over me and says
[23:16]
Threaten to beat me in a very
[23:21]
aggressive threatening manner.
[23:22]
I said Now you're going to
[23:23]
threaten to beat a homeless guy
[23:23]
that you were standing over.
[23:27]
I said Really?
[23:27]
He got more abrasive cop bag
[23:31]
that he So I walked off and
[23:32]
called 911911 dispatchers will
[23:36]
not take a report from any of
[23:37]
the activity that I've gone
[23:38]
through in the past It struck
[23:42]
me from reporting anything
[23:42]
The dispatcher wanted me to
[23:47]
confirm my telephone number
[23:48]
before he would dispatch
[23:53]
anybody in an emergency call.
[23:53]
>> That's not normal protocol
[23:54]
in any city.
[23:54]
Usually it's a dispatch
[23:55]
immediately.
[23:58]
That's what I got.
[23:59]
Thank you for your comment that
[23:59]
that concludes the witness who
[24:00]
died.
[24:03]
And for the record you did not
[24:03]
speak to any of the closed
[24:04]
session items so thank you.
[24:07]
I'm a human being.
[24:08]
That does conclude in-person
[24:09]
public comment.
[24:12]
I've started the five minute
[24:13]
timer in council chambers.
[24:13]
We will now turn to the virtual
[24:14]
care in which there are
[24:16]
currently three participants
[24:17]
wishing to speak.
[24:21]
We will first go to original
[24:22]
draft.
[24:26]
Could you please indicate which
[24:27]
closed session item or items
[24:32]
you wish to speak to me?
[24:32]
I'm going to touch on all of
[24:33]
them.
[24:33]
Okay.
[24:36]
You have three minutes.
[24:36]
>> Please proceed.
[24:36]
Okay.
[24:37]
So with these continued trips
[24:41]
and fall incidents I mean it's
[24:41]
quite ridiculous how much money
[24:45]
we wind up spending to in
[24:46]
settlements when you know just
[24:51]
these problems can be fixed and
[24:52]
you know, knowing that someone
[24:56]
has tripped and fall fell in
[25:01]
these areas or had an incident
[25:01]
there, you know, have you gone
[25:02]
and mitigated that?
[25:06]
Is that something that you
[25:06]
know, was instantly put on
[25:07]
the list of things to do to
[25:12]
make sure that there won't be
[25:12]
other incidents that arise?
[25:13]
And I find it interesting as
[25:16]
well that some of you say this
[25:17]
case arises from a slip and
[25:17]
fall.
[25:22]
This case arises from a slip
[25:22]
and fall and then it's like
[25:23]
this matter arises from an
[25:26]
alleged trip and fall on
[25:27]
the sidewalk.
[25:31]
So I mean what leads you to
[25:32]
treat the case in that manner
[25:36]
And then for you you know
[25:37]
the case five in the Wadsworth
[25:41]
case, you know this one also it
[25:42]
says this case arises out of an
[25:45]
alleged scooter incident But
[25:46]
this is an actual death.
[25:50]
Somebody died and due to
[25:51]
dangerous condition.
[25:52]
So I feel like when you guys
[25:55]
want to, you know, go under
[25:56]
the Brown Act and say that
[25:57]
you're like providing just
[26:00]
enough information for a
[26:01]
summary I mean you're leaving
[26:01]
out some pretty significant
[26:05]
information and you know, for
[26:09]
the people to know and you know
[26:10]
to for someone to have died due
[26:14]
to this incident you know, and
[26:15]
you to to consider it alleged
[26:16]
in the other ones you know are
[26:19]
obviously true or whatever you
[26:20]
know it just kind of discredits
[26:24]
the person dying it feels like
[26:28]
And then with this Jesse Taurus
[26:29]
case and the Civil Service
[26:30]
Commission, you know, this
[26:34]
officer was engaged in
[26:34]
misconduct off duty.
[26:35]
And so, you know, officer
[26:39]
should be held to a, you know,
[26:44]
standard much like the people.
[26:45]
And I find that the people are
[26:46]
held to a higher standard than
[26:49]
law enforcement and or any kind
[26:50]
of public official.
[26:50]
And you know, when the people
[26:54]
engage in crimes, you know you
[26:54]
want to hold them accountable.
[26:55]
But then we have, you know,
[26:58]
officers whether it's on duty
[26:59]
or off duty and they're engaged
[27:03]
in misconduct abuse, you know,
[27:04]
abuse of power or different
[27:05]
things like that.
[27:08]
I mean.
[27:09]
Andrea Ebbing you know, within
[27:09]
Anthony Warner I mean he
[27:13]
brutally assaulted her and
[27:14]
she's sitting in jail right now
[27:15]
and they made her do a
[27:18]
competency evaluation and they
[27:19]
have deemed her incompetent
[27:19]
which is absolutely ridiculous
[27:23]
which means that stalls of
[27:24]
proceedings and all of this And
[27:25]
so it's like you guys wind up
[27:27]
criminal izing the people when
[27:28]
they've been abused by law
[27:32]
enforcement.
[27:33]
So I mean this man needs to be
[27:37]
held to a standard much like
[27:37]
the people and even higher I
[27:38]
would say thank you very
[27:42]
comment.
[27:42]
The caller did speak to all
[27:43]
the closed session items So
[27:46]
thank you very much.
[27:47]
Our next virtual commenter is
[27:51]
with the caller with the last
[27:52]
four digits 8700 please tell us
[27:56]
which items you wish to speak
[28:05]
to and begin your comments.
[28:05]
Excuse me.
[28:06]
Thank you.
[28:11]
Deputy Clerk Joy is Senator and
[28:15]
I would speak on all of them.
[28:15]
Okay.
[28:16]
Please proceed.
[28:19]
And number one which is a trip
[28:24]
and fall accident again I'm
[28:24]
going to speak to the public
[28:28]
deer public I really encourage
[28:29]
you to claim your own self
[28:33]
safety and be your own advocate
[28:34]
when you're out walking as I
[28:38]
try to do because it's
[28:39]
dangerous out there on
[28:40]
the sidewalks and we need to
[28:43]
watch out for ourselves.
[28:46]
So please consider that I'm
[28:47]
number two which is a slip and
[28:53]
fall incident and well I'll say
[28:54]
on that is incident versus an
[28:57]
accident doesn't seem as solid
[29:01]
a case for the plaintiff here.
[29:02]
I am not sure on that.
[29:05]
So on number three alleged trip
[29:06]
and fall on sidewalk so with
[29:11]
alleged I'm not clear again yet
[29:15]
what I'm not clear is what
[29:16]
happened and it doesn't seem
[29:17]
like you are either in what's
[29:20]
being presented and that
[29:21]
the evidence will need to be
[29:21]
presented so that you really
[29:25]
can move forward on it.
[29:26]
But best of luck on that.
[29:29]
So item number four which is
[29:30]
the Civil Service Commission
[29:35]
item a writ of mandamus which
[29:39]
in MARCH and it means we
[29:40]
command and also this really
[29:44]
struck me when I looked it up
[29:44]
it is an extraordinary remedy.
[29:48]
So I'm not clear what that
[29:49]
means but I did Google a civil
[29:54]
service commission and they
[29:54]
have a very positive
[29:55]
reputation.
[29:59]
So that was really wonderful to
[29:59]
read, You know, on
[30:00]
the settlements and judgments
[30:04]
which we looked at recently
[30:04]
mostly regarding speedy equal
[30:08]
rights within number one item
[30:08]
of the number of cases that
[30:12]
occur to I And they talked
[30:13]
about speeding up the process
[30:17]
because the costs are
[30:17]
escalating.
[30:18]
So please I don't know when
[30:22]
this termination in
[30:23]
the original added some
[30:23]
information which I didn't know
[30:27]
about so it sounds like a
[30:28]
pretty serious thing and then a
[30:31]
termination is involved So I'll
[30:32]
just send you blessings on that
[30:33]
and best of luck for all
[30:36]
parties In the Scooter incident
[30:41]
which was alleged excuse me
[30:42]
Same incident.
[30:42]
Alleged.
[30:42]
Oh yes.
[30:45]
So there is an incident alleged
[30:46]
e-scooter incident I learned a
[30:51]
lot during our e-scooter time
[30:51]
and when they were present in
[30:55]
San Diego mostly I learned that
[30:56]
we have many levels, many
[30:59]
layers of codes and regular
[31:00]
ations that can tie our hands
[31:04]
in litigation.
[31:05]
I think we learned a lot from
[31:09]
our e-scooter period and it's
[31:14]
it's just a learning lesson for
[31:15]
us and I certainly learned a
[31:15]
lot.
[31:19]
So we move forward and I thank
[31:20]
you very much for listening and
[31:21]
love to all have a beautiful
[31:24]
day and a beautiful week.
[31:25]
Thank you to the caller for
[31:26]
staying on topic.
[31:29]
Thank you for those comments.
[31:30]
Please note that the five
[31:30]
minute timer did conclude with
[31:31]
no additional speakers left in
[31:34]
the queue That does conclude
[31:38]
closed session Public comment
[31:39]
All right.
[31:39]
>> Thank you Deputy Clerk With
[31:40]
that we will now recess into
[31:43]
closed session and reconvene
[31:44]
council today at 2 P.M. Or
[45:05]
shortly thereafter
[46:50]
and then
[46:56]
All right started.
[46:57]
>> Good afternoon.
[46:57]
I will now reconvene the city
[47:01]
council meeting on Monday, JUNE
[47:02]
22nd 2026 that the clerk please
[47:03]
call the Roll Council member
[47:07]
Campbell Council Member
[47:13]
Whitburn Council Member Foster
[47:13]
Council Member Von Wilpert
[47:19]
Council PRESIDENT Pro Tem
[47:20]
The Council Member Campo
[47:25]
Council Member Moreno Council
[47:26]
Member Eli Rivera and Council
[47:31]
PRESIDENT LaCava Present.
[47:32]
Also attending the meeting are
[47:32]
Assistant City Attorney
[47:37]
Michelle Garland Jordan more
[47:38]
fiscal and policy analyst with
[47:39]
the Office of the Independent
[47:41]
Budget Analyst and myself here
[47:47]
Deputy City Clerk Kevin Smith.
[47:48]
All right, a quorum is now
[47:49]
present.
[47:49]
So first of all start off
[47:50]
whether there's any comments
[47:54]
from the mayor's office,
[47:55]
council members, city attorney,
[47:55]
independent budget analyst, our
[48:00]
city clerk and not seeing any
[48:00]
We'll go on Deputy Clerk Please
[48:01]
go over how the public can
[48:06]
offer their testimony.
[48:07]
I will not I don't know how I
[48:07]
like to slide on the screen
[48:08]
their reviews how the public
[48:11]
can offer their public
[48:12]
testimony during this
[48:13]
afternoon's meeting.
[48:13]
The order can be found on
[48:14]
the agenda Summary found online
[48:18]
or at the table in the back of
[48:19]
the room.
[48:19]
If you are in person please
[48:20]
complete the speaker slip
[48:20]
located at the entrance of
[48:23]
chambers and bring it to
[48:24]
the front of the room.
[48:24]
Council ambassadors are
[48:25]
available near the entrance of
[48:29]
chambers and can assist with
[48:30]
questions and speaker slips.
[48:30]
No further in-person testimony
[48:31]
will be taken once the council
[48:35]
begins Virtual testimony.
[48:36]
>> All right.
[48:42]
And as a friendly reminder non
[48:42]
agenda public comment which
[48:43]
will be taken at the end of
[48:44]
the day it's an opportunity to
[48:44]
speak on anything that's within
[48:47]
the broader city of San Diego
[48:48]
Purview docketed items We
[48:49]
request that you speak to
[48:53]
the item itself Inform
[48:54]
the Council about whether you
[48:55]
support an item or reject an
[48:59]
item and your reasons why So
[49:00]
focusing on the docket item
[49:05]
will be appreciated So with
[49:05]
that Deputy Clerk please
[49:14]
introduce item 200 item 200
[49:15]
Public hour Feasibility study
[49:15]
Phase two report.
[49:16]
All right.
[49:20]
Thank you, sir.
[49:21]
And a reminder to everyone this
[49:22]
is an information item.
[49:27]
No motion will be taken And now
[49:31]
settle then please introduce
[49:32]
yourselves for the record and
[49:33]
let us know how much time
[49:43]
you'll need.
[49:44]
>> There we go.
[49:44]
Try again.
[49:44]
There we.
[49:49]
Keep on Heather Rider, deputy
[49:50]
director for energy in
[49:51]
the Department of General
[49:51]
Services.
[49:52]
We need about 15 minutes.
[49:55]
All right, Begin when you're
[49:56]
ready.
[49:56]
All right.
[49:56]
Thank you very much.
[49:57]
Thank you.
[49:57]
Council PRESIDENT, members of
[50:01]
council as many of you are
[50:02]
aware and as a corollary to
[50:02]
the award of the Genie
[50:07]
franchise, the city started
[50:07]
studying alternatives to a
[50:12]
franchise agreement for
[50:13]
the delivery of electricity
[50:14]
within the city boundary and as
[50:14]
public power feasibility that
[50:19]
study was split into two parts.
[50:20]
The Phase one report was
[50:20]
brought to council in
[50:23]
the summer of 2023.
[50:24]
It did find basic economic and
[50:29]
technical feasibility so we
[50:29]
moved into phase two which was
[50:30]
a much deeper dive into
[50:35]
the economic and technical
[50:36]
feasibility as well as
[50:36]
incorporating changes in
[50:41]
the regulatory space that have
[50:42]
happened between those periods.
[50:43]
We brought on new gen
[50:48]
strategies to act as our
[50:49]
subject matter expert and
[50:49]
technical consultant in
[50:50]
executing that study And so I'm
[50:54]
going to pass it over to Scott
[50:54]
to go over the findings.
[50:55]
Great.
[50:55]
Thank you Heather.
[50:56]
Good afternoon.
[50:59]
Council PRESIDENT Council
[51:00]
members Staff As I mentioned my
[51:01]
name is Scott Burnham.
[51:01]
I'm a partner and project
[51:07]
manager with New Data Strategy
[51:07]
Solutions.
[51:08]
I'm joined here today with DR.
[51:12]
Nelson Beck along with Siemens
[51:12]
Engineering, Andrew Atwater
[51:13]
with Beebe and a consultant
[51:15]
that assisted us with the study
[51:15]
.
[51:22]
Excellent.
[51:22]
>> All right.
[51:23]
The bottom line in terms of
[51:24]
the phase two study is that we
[51:28]
found that the analysis for
[51:29]
developing and creating an mcu
[51:34]
and municipal electric utility
[51:35]
from the San Diego Gas Electric
[51:35]
Genie assets was both
[51:36]
economically and technically
[51:40]
feasible.
[51:41]
The results depend on the value
[51:41]
of the assets that the city
[51:46]
pays to acquire them.
[51:47]
We conducted analysis using two
[51:47]
approaches to cost approaches
[51:48]
to value.
[51:52]
We'll talk more about that
[51:53]
The Oakland original costs less
[51:54]
depreciation at the low end and
[51:58]
replacement costs new less
[51:59]
depreciation on the high end.
[52:00]
This analysis focuses on
[52:05]
the delivery assets only
[52:06]
There's no generation assets to
[52:10]
be acquired from Genie
[52:10]
The generation power supply
[52:11]
portion of the mcu was assumed
[52:17]
to be supplied by sdp.
[52:18]
>> This data currently serves
[52:18]
the majority of the city Load
[52:23]
results suggest a range of
[52:27]
savings between 6 and 6% to 16%
[52:28]
depending on the assets paid to
[52:32]
be acquired between 7 billion
[52:33]
and $19 billion At the 30 year
[52:38]
conclusion of the 30 year study
[52:38]
.
[52:39]
More broadly, the analysis that
[52:40]
we conducted was what we call
[52:44]
an overnight analysis.
[52:44]
It's assuming that
[52:45]
the municipal utility would
[52:50]
essentially start within
[52:51]
the year.
[52:51]
That's not feasible.
[52:52]
We know that We realize that
[52:56]
will take at least 10 or 15
[52:57]
years to establish a municipal
[52:57]
utility.
[53:02]
But the approach uses an
[53:03]
overnight analysis as a prudent
[53:04]
approach to understand the cost
[53:07]
and determine the feasibility.
[53:14]
We came before you
[53:15]
approximately three years ago
[53:15]
with the results of the Phase
[53:16]
one study.
[53:16]
>> There's been significant
[53:20]
changes since then.
[53:21]
The relative to the study we
[53:21]
had additional information and
[53:27]
detailed data provided by Jenny
[53:28]
and that informed a lot of
[53:28]
the results of the study.
[53:33]
We also recognize there have
[53:33]
been significant changes in
[53:34]
policy and the regulatory
[53:35]
environment that also impact
[53:35]
the study and the Phase two
[53:42]
report Phase two report In
[53:43]
terms of the changes in
[53:43]
the utility environment,
[53:44]
certainly a change in
[53:48]
the landscape relative to
[53:49]
the assets themselves.
[53:50]
Again, the information we got
[53:54]
from Jenny that information
[53:54]
helped improve the cost
[53:55]
analysis relative to
[54:00]
the physical separation of
[54:00]
the two systems.
[54:01]
If the mou is to be formed it
[54:02]
would be electrically isolated
[54:06]
from Jenny who have the ability
[54:06]
to do so and that would require
[54:07]
investment on behalf of
[54:11]
the city.
[54:12]
In terms of the regulatory
[54:13]
environment, the process
[54:18]
continues to evolve relative to
[54:19]
how the cpc would develop or
[54:25]
what would determine the cost
[54:25]
for the mcu to acquire these
[54:26]
assets.
[54:26]
As you're aware, the city of
[54:27]
San Francisco is going through
[54:31]
a similar exercise.
[54:32]
They're a little further ahead.
[54:32]
They've been to the cpc.
[54:33]
They have some preliminary
[54:36]
results relative to how the cpc
[54:37]
would then then look at
[54:37]
the acquisition costs.
[54:42]
But there are other policy and
[54:43]
risks to be considered in terms
[54:44]
of climate change, commodity
[54:48]
cost, wildfire mitigation as
[54:49]
you know that's a big ticket
[54:50]
item relative to costs and cost
[54:57]
recovery.
[54:57]
The Phase two approach focuses
[55:02]
on a 30 year cash needs.
[55:03]
It develops what we call a
[55:04]
revenue requirement for
[55:04]
the mcu.
[55:05]
That's the total dollars to
[55:09]
operate the mcu in comparison
[55:10]
to the total dollars paid to us
[55:11]
based on existing rates and
[55:15]
assumptions about future rates.
[55:16]
For Jenny, as I mentioned, it's
[55:17]
only acquiring assets within
[55:22]
the city primarily distribution
[55:22]
assets but some limited
[55:28]
transmission assets as dcp as
[55:29]
dcp sorry the cta will continue
[55:30]
to provide power supply to
[55:34]
everyone And it's this buildup
[55:34]
of the revenue requirement that
[55:35]
is the crux of the analysis.
[55:39]
So we're looking at the that
[55:40]
the system as mcu compared does
[55:46]
cost on an all in basis
[55:47]
compared to the system as I see
[55:47]
each unit continue and
[55:51]
the status quo the analysis
[55:52]
suggests the that there is
[55:52]
indeed savings it shows
[55:57]
the benefit of public power
[55:57]
there are but current
[55:58]
opportunity for efficiency
[56:03]
local control and cost savings.
[56:04]
Again this is done on what we
[56:05]
call an overnight analysis
[56:09]
recognizing that there would
[56:10]
still be a different time
[56:16]
component to this in terms of
[56:16]
the assets to be acquired.
[56:17]
As I mentioned, almost all
[56:21]
the assets almost all
[56:22]
the assets in the city would be
[56:22]
acquired approximately 800
[56:27]
miles of secondary conductor
[56:28]
conductor line wires,
[56:29]
transformers meters and other
[56:29]
equipment.
[56:33]
The city would be responsible
[56:34]
for serving approximately six
[56:34]
660,000 customers.
[56:40]
The city would also acquire 42
[56:41]
electrical substations within
[56:41]
the municipal boundary and
[56:42]
the sub transmission conductor
[56:47]
between those substations
[56:47]
the city would not acquire
[56:48]
the high voltage system
[56:52]
the bulk transmission system or
[56:52]
any generation assets from a
[56:58]
genie.
[56:59]
As I mentioned, we conducted
[57:00]
what we call a cost based
[57:04]
purchase price analysis.
[57:05]
This cost based analysis begins
[57:06]
on a low end and with the only
[57:10]
older original cost less
[57:11]
depreciation and the high end
[57:11]
replacement cost new less
[57:15]
appreciation In reality
[57:16]
the cost would likely come in
[57:16]
between those two values.
[57:20]
But we developed these bookend
[57:21]
values at $2.4 billion for
[57:24]
original cost of depreciation
[57:25]
and $7.6 billion replacement
[57:30]
cost new less depreciation In a
[57:31]
transaction a prudent seller
[57:32]
likely would likely not accept
[57:37]
our original cost appreciation
[57:37]
.
[57:38]
That's a book value essentially
[57:39]
and a prudent buyer is unlikely
[57:39]
to accept replacement cost new
[57:43]
less depreciation which is why
[57:44]
would in all likelihood that
[57:44]
costs would come in between
[57:49]
those two values somewhere
[57:50]
The difference of that $5.2
[57:50]
billion is significant and it
[57:54]
does in the age of the assets
[57:55]
certainly has an impact on that
[57:55]
valuation.
[58:00]
We also assumed that there
[58:01]
would be additional costs
[58:01]
upfront approximately $912
[58:02]
million of upfront cost to fund
[58:07]
that separation analysis again
[58:07]
creating to electrically
[58:08]
ability to have two
[58:12]
electrically isolated systems
[58:13]
startup costs as well and as
[58:14]
well as $470 million in working
[58:18]
capital.
[58:19]
Startup costs include
[58:20]
the development of the utility
[58:23]
to create an operating utility
[58:23]
,financial reserves, liquidity
[58:29]
measurements and the like.
[58:30]
This next slide shows a summary
[58:31]
of the key assumptions.
[58:31]
As I mentioned, the purchase
[58:35]
price is probably the most
[58:35]
dramatic key in terms of
[58:39]
the analysis that range between
[58:40]
2.4 billion and 7.6 billion but
[58:41]
also the assumptions around
[58:47]
long term rate growth for ge we
[58:47]
assume 4% per year going
[58:51]
forward That was based on
[58:52]
information available at
[58:52]
the time From the general rate
[58:53]
case it's probably a little bit
[58:58]
lower than historic but we
[58:58]
believe there was a
[58:59]
conservative assumption other
[59:03]
elements include the payment in
[59:04]
lieu of franchise fees and
[59:04]
public benefits.
[59:05]
As I mentioned, the separation
[59:09]
costs, startup costs upfront
[59:10]
working and of course staffing
[59:11]
one of the critical elements
[59:15]
relative to difference between
[59:15]
the phase one and the phase two
[59:16]
analysis was there's a more
[59:19]
detailed analysis around
[59:20]
staffing.
[59:20]
The intent would be to to
[59:21]
address the concerns of ibew
[59:24]
and others and acquire
[59:31]
the workforce from any.
[59:31]
In summary of the results.
[59:36]
We've got two graphics here on
[59:37]
the left.
[59:37]
You can see there's selected
[59:38]
years between the oclc and
[59:42]
again on the low end the rca
[59:43]
and on the high end.
[59:44]
So you can see we're showing
[59:45]
your ten, your 20 and your 30
[59:47]
for the ocd.
[59:47]
So significant savings of $19
[59:48]
billion at the end of
[59:52]
cumulative savings in your 30
[59:53]
the replacement costs new less
[59:56]
appreciation is slightly lower
[59:57]
at $7 billion There is a
[1:00:01]
crossover in the ocd case It's
[1:00:02]
year one in which mean you
[1:00:02]
would show cash positive for
[1:00:06]
the replacement cost you looked
[1:00:07]
at less depreciation the old
[1:00:08]
either higher asset that
[1:00:08]
crossover occurs and estimated
[1:00:11]
in year 12 so the city would
[1:00:12]
not recognize savings upfront
[1:00:16]
if indeed they purchased a
[1:00:21]
price at at rc an oldie
[1:00:21]
The next slide shows on an
[1:00:27]
annual basis looking out over
[1:00:28]
the 30 year forecast the period
[1:00:29]
of the study on the left we saw
[1:00:29]
the ocr and all the numbers You
[1:00:31]
can see showing cash positive
[1:00:32]
there in year one and
[1:00:38]
continuing to grow over time On
[1:00:39]
the right we show our you know
[1:00:39]
you can see that the blue bars
[1:00:40]
there are the city of San Diego
[1:00:43]
costs the mcu costs that would
[1:00:45]
be higher than any costs for
[1:00:46]
the first 12, 11, 12 years in
[1:00:51]
the study we did conduct a
[1:00:56]
sensitivity on the relative to
[1:00:57]
the assumptions about
[1:01:01]
the growth rate of the retail
[1:01:01]
rates.
[1:01:02]
As I mentioned, we use the 4%
[1:01:07]
approach annual approach for
[1:01:08]
city Jeanie retail rates We
[1:01:08]
believe that that was
[1:01:11]
reasonable based on recent rate
[1:01:12]
case information.
[1:01:12]
Historically that number is
[1:01:15]
probably closer to about 6% as
[1:01:16]
you can see in this analysis
[1:01:16]
here.
[1:01:21]
What we're trying to show in
[1:01:22]
this analysis I should say is
[1:01:25]
that at 3% at the lower end of
[1:01:26]
the range of growth rates,
[1:01:29]
the savings is significantly
[1:01:30]
less at 6% that that range goes
[1:01:36]
up to significant and
[1:01:36]
significant savings, a
[1:01:37]
difference of about $60 billion
[1:01:37]
between those.
[1:01:41]
Now this is based on the ocr
[1:01:42]
acquisition cost case but you
[1:01:46]
can see the sensitivity to
[1:01:46]
the results relative to
[1:01:47]
the assumption made for
[1:01:50]
the genie rates.
[1:01:51]
There are certainly several key
[1:01:55]
assumptions moving forward that
[1:01:56]
would impact future
[1:01:56]
feasibility.
[1:01:57]
Certainly policy direction
[1:02:00]
around climate change, consumer
[1:02:01]
preference, electrification and
[1:02:02]
the like relative to projected
[1:02:06]
low growth How it will impact
[1:02:06]
this analysis certainly
[1:02:10]
direction at the state level
[1:02:11]
looking at affordability,
[1:02:15]
looking at reliability in terms
[1:02:16]
of investment requirements for
[1:02:17]
systems such as energy needs
[1:02:20]
and the sensitivity to retail
[1:02:21]
rates is an important
[1:02:25]
consideration as well.
[1:02:26]
Looking out over what's
[1:02:26]
happening at the state at
[1:02:30]
the cpi you see relative to San
[1:02:30]
Francisco felt that
[1:02:31]
the precedents there in terms
[1:02:34]
of that court decision,
[1:02:35]
the preliminary court decision
[1:02:36]
looking at legislation, Senate
[1:02:40]
bill 875 looking at municipal
[1:02:40]
ization efforts across
[1:02:44]
the state as well as at the cpi
[1:02:45]
you see regarding wildfire
[1:02:49]
investments and the past in
[1:02:53]
the future is a major unknown
[1:02:53]
conclusion.
[1:02:58]
>> The Phase two analysis is
[1:02:58]
conducted has significantly
[1:02:59]
refined the financial
[1:03:02]
projections.
[1:03:03]
We have a lot more detailed
[1:03:04]
data relative to the asset
[1:03:04]
inventory relative to
[1:03:07]
the estimated costs.
[1:03:08]
The certainly the age of
[1:03:08]
the assets are materially older
[1:03:24]
than originally assumed
[1:03:25]
creating a different difference
[1:03:25]
disparity between the ocr and
[1:03:26]
replacement costs new less
[1:03:26]
depreciation values.
[1:03:26]
The Phase two does find
[1:03:26]
financial and technical
[1:03:26]
feasibility and the opportunity
[1:03:27]
to save dollars for the rate
[1:03:27]
over time for rate payers.
[1:03:32]
But the biggest drivers I
[1:03:32]
mentioned is the assumption
[1:03:33]
around sd g long term growth
[1:03:36]
rates and of course
[1:03:37]
the potential savings and
[1:03:37]
financial benefits are an
[1:03:38]
estimate At this point there's
[1:03:41]
no guarantees that these that
[1:03:42]
these savings would would would
[1:03:45]
come to fruition.
[1:03:46]
The legislative and regulatory
[1:03:50]
environment is indeed evolving
[1:03:50]
and fluid.
[1:03:51]
There are certainly costs
[1:03:52]
issues around costs recovery
[1:03:54]
cost reimbursement valuation
[1:03:55]
approaches as well as
[1:03:56]
the potential process all of
[1:03:59]
which could impact
[1:04:00]
the financial feasibility.
[1:04:01]
However, overall the results
[1:04:05]
are more refined and more more
[1:04:06]
defined than significant
[1:04:09]
unknowns and variables remain.
[1:04:10]
That's the conclusion of our
[1:04:11]
presentation.
[1:04:11]
I'd be happy to answer any
[1:04:14]
questions.
[1:04:15]
>> All right.
[1:04:15]
Thank you for the presentation.
[1:04:20]
The fire marshal has asked for
[1:04:20]
Those that are standing
[1:04:21]
the back are actually empty
[1:04:21]
seats out there.
[1:04:24]
So if you could take a seat
[1:04:24]
with make the fire marshal
[1:04:25]
happy which makes me feel more
[1:04:28]
comfortable.
[1:04:29]
So thank you.
[1:04:33]
So think again for
[1:04:33]
the presentation.
[1:04:34]
With that let's go to public
[1:04:38]
comment.
[1:04:38]
Thank you counsel Thank you.
[1:04:42]
Council PRESIDENT This item
[1:04:42]
received 15 comments in favor
[1:04:43]
and two comments in opposition
[1:04:46]
via our e comment form which
[1:04:47]
has been distributed to
[1:04:47]
the Council.
[1:04:49]
We will begin with in-person
[1:04:54]
public comment.
[1:04:55]
Anthony Stackhouse Please come
[1:05:00]
forward and and each speaker
[1:05:03]
will receive one minute after
[1:05:08]
Anthony Kevin Carroll, Matthew
[1:05:08]
Fish and Christina marquez
[1:05:10]
Please come sit in the front
[1:05:14]
row.
[1:05:19]
>> Please begin.
[1:05:20]
My name is Anthony Stackhouse.
[1:05:20]
I serve on the executive board
[1:05:24]
for ibew for 65.
[1:05:25]
I spent 14 years in the Army
[1:05:29]
with combat deployments
[1:05:30]
overseas and if you knew the I
[1:05:31]
went through to get to where
[1:05:34]
I'm at today you would not be
[1:05:35]
so steadfast to put my job and
[1:05:35]
my family's quality of life at
[1:05:38]
risk.
[1:05:39]
The people in this city don't
[1:05:40]
trust you Don't give them more
[1:05:44]
reasons.
[1:05:44]
Be honest with themselves.
[1:05:45]
You do not have the resources
[1:05:49]
or knowledge to do this.
[1:05:49]
Don't gamble with my job or
[1:05:50]
the job of my union brothers
[1:05:53]
and sisters because I promise
[1:05:54]
you one thing we will not go
[1:05:55]
down without a fight.
[1:05:58]
I urge this Cancel this council
[1:05:59]
to end this now Municipal
[1:06:06]
association is union busting.
[1:06:07]
Thank you for those comments.
[1:06:16]
Kevin Carroll Good afternoon
[1:06:16]
Council members My name is
[1:06:17]
Kevin Caroline, executive
[1:06:18]
Director of Tech San Diego
[1:06:21]
representing technology
[1:06:21]
companies across our region.
[1:06:22]
Our members care about reliable
[1:06:26]
service competitive rate and
[1:06:26]
the infrastructure needed to
[1:06:27]
support innovation,
[1:06:28]
manufacturing and economic
[1:06:30]
growth.
[1:06:31]
Based on this presentation we
[1:06:32]
have some concerns.
[1:06:32]
The question is not whether
[1:06:35]
minutes position is possible.
[1:06:36]
The question is whether
[1:06:36]
the risk caused are
[1:06:40]
sufficiently understood before
[1:06:41]
making a multibillion dollar
[1:06:41]
decision that could impact
[1:06:42]
businesses and residents for
[1:06:45]
decades before moving forward.
[1:06:46]
The city should have a high
[1:06:46]
degree of confidence that all
[1:06:50]
major cost liabilities,
[1:06:51]
regulatory requirements and
[1:06:51]
operational challenges are
[1:06:55]
fully understood and reflected
[1:06:55]
in the analysis.
[1:06:56]
If manipulation ultimately
[1:06:59]
proves to be the best path,
[1:07:00]
the business case could
[1:07:00]
withstand rigorous scrutiny if
[1:07:01]
significant uncertainties
[1:07:04]
remain as I think we saw in
[1:07:05]
the presentation, those
[1:07:06]
questions should be resolved
[1:07:09]
before ratepayers and
[1:07:09]
businesses assume the risk for
[1:07:10]
San Diego's innovation economy.
[1:07:14]
The goal is a reliable,
[1:07:14]
resilient and affordable energy
[1:07:15]
energy system that supports
[1:07:15]
job.
[1:07:16]
Thank you.
[1:07:17]
Thank you for your comment and
[1:07:19]
that does conclude your time.
[1:07:25]
Matthew Fish Good afternoon
[1:07:25]
Council members.
[1:07:29]
My name is Matthew Fish and I'm
[1:07:30]
the system business manager at
[1:07:31]
ibew Local 465.
[1:07:34]
I represent the workers
[1:07:35]
industry Jeannie speaking
[1:07:38]
against the Phase two study
[1:07:39]
because it offers no job
[1:07:39]
protections for my 700 gas
[1:07:43]
construction work members
[1:07:43]
workers will lose their jobs
[1:07:44]
and the retiree medical and
[1:07:48]
pensions will be affected.
[1:07:49]
Please in this once and for all
[1:07:52]
please invest the $9 million
[1:07:53]
Billion elsewhere such as
[1:07:53]
infrastructure backlog or
[1:07:57]
housing for the homeless.
[1:07:58]
Please do not gamble with our
[1:08:01]
union jobs and if the city has
[1:08:06]
bigger priorities like thank
[1:08:11]
you and Christina marquez and
[1:08:12]
while Christina speak incurred
[1:08:13]
Mark Fuentes, Krystal Gomez,
[1:08:16]
Monica Valdez and Cecilia
[1:08:17]
marquez please approach
[1:08:20]
the front row.
[1:08:21]
Hi good afternoon.
[1:08:22]
Christina marquez speaking on
[1:08:26]
behalf of ibew Local 569 San
[1:08:26]
Diego and Imperial County where
[1:08:30]
the inside wireman We're here
[1:08:31]
in solidarity with our union
[1:08:34]
sisters and brothers of 465.
[1:08:38]
The ibew stands against any
[1:08:39]
effort to municipalities
[1:08:43]
the power company the Nugent
[1:08:44]
study says nothing about worker
[1:08:48]
protections or job guarantee
[1:08:49]
Leaving our ibew five 569
[1:08:53]
members in limbo ibew members
[1:08:58]
could lose jobs and benefits
[1:08:58]
and the city is already
[1:08:59]
billions behind in
[1:09:03]
infrastructure spending
[1:09:03]
infrastructure spending That
[1:09:04]
puts our building trades
[1:09:08]
members to work.
[1:09:09]
>> Please do not wage or gamble
[1:09:13]
with our jobs and our
[1:09:13]
livelihood.
[1:09:14]
Please end these efforts once
[1:09:14]
for all.
[1:09:17]
Thank you.
[1:09:18]
Thank you.
[1:09:23]
Mark wants Yeah Good afternoon.
[1:09:28]
Council members.
[1:09:29]
My name is Mark Fuentes.
[1:09:30]
I'm a gas working foreman for
[1:09:30]
our city.
[1:09:32]
Jeannie a shop steward Would I
[1:09:36]
be w Local 465 a proud U.S.
[1:09:37]
Army veteran and a San Diego
[1:09:38]
native.
[1:09:38]
I served this country because I
[1:09:42]
believe in protecting American
[1:09:43]
families, American workers and
[1:09:43]
communities.
[1:09:47]
But when I look at this
[1:09:48]
proposal I don't see any
[1:09:48]
protections for me, my
[1:09:51]
coworkers or our families.
[1:09:52]
I don't see a future for my
[1:09:53]
skilled gas workers who have
[1:09:56]
dedicated their entire careers
[1:09:57]
to serving this community.
[1:10:01]
I also don't see protection for
[1:10:01]
our communities especially when
[1:10:02]
the cost of living is at an all
[1:10:06]
time high.
[1:10:06]
This proposal will create
[1:10:07]
additional expenses for
[1:10:10]
citizens and taxpayers who are
[1:10:11]
already struggling to make ends
[1:10:11]
meet.
[1:10:12]
Please don't gamble with good
[1:10:15]
union jobs without clear worker
[1:10:15]
protections.
[1:10:16]
I urge you not to move forward
[1:10:17]
with this effort.
[1:10:24]
Thank you Cristo Gomez.
[1:10:25]
>> Good afternoon, Council
[1:10:25]
members.
[1:10:30]
My name is Cristo Gomez.
[1:10:31]
I am shop steward of ibew 465
[1:10:31]
and equipment operator c
[1:10:35]
Jeannie I'm also a veteran of
[1:10:36]
the United States Marine Corps.
[1:10:36]
I operate equipment for gas and
[1:10:40]
electric emergency And this
[1:10:40]
feasibility study you only want
[1:10:41]
to take over electric.
[1:10:45]
What about gas jobs?
[1:10:45]
What about equipment operators
[1:10:49]
like myself and their families
[1:10:50]
when we lose our jobs?
[1:10:54]
What about our retirements?
[1:10:55]
There are over 700 gas workers
[1:10:55]
in our union.
[1:10:58]
What about them?
[1:10:59]
Where's our just transition And
[1:11:04]
what about job mobility?
[1:11:04]
Because in this proposal I
[1:11:05]
don't see a future for us in
[1:11:09]
our jobs Don't gamble with good
[1:11:10]
union jobs And I see Jeannie
[1:11:13]
with the city takeover I urge
[1:11:14]
the City Council not to proceed
[1:11:14]
any further with this effort
[1:11:18]
forcing the city to take on
[1:11:18]
billions in debt is wrong.
[1:11:19]
We have bigger priorities.
[1:11:21]
Thank you.
[1:11:22]
Thank you.
[1:11:32]
Monica Valdez Hello my name is
[1:11:32]
Monica Relative.
[1:11:33]
>> I'm a third generation ibew
[1:11:36]
member and emergency dispatcher
[1:11:37]
for sd Jeannie I'm a proud
[1:11:40]
resident of District four.
[1:11:45]
>> I am a very active and very
[1:11:45]
active in my union and my
[1:11:46]
community as part of local
[1:11:47]
social service clubs.
[1:11:49]
I'm here to express my absolute
[1:11:50]
opposition to the Phase two
[1:11:54]
study The proposal is costly,
[1:11:55]
will gamble what puts our union
[1:11:59]
contracts in the crosshairs?
[1:11:59]
There are zero protections and
[1:12:03]
zero guarantees for my members
[1:12:04]
There was zero current
[1:12:04]
consideration for my gas
[1:12:05]
members.
[1:12:08]
Our gas people They are left
[1:12:09]
behind in this proposal.
[1:12:12]
Where is the just the just
[1:12:13]
transition Please vote against
[1:12:13]
this risky measure.
[1:12:14]
Please don't gamble with our
[1:12:17]
livelihoods.
[1:12:17]
>> Please stop this once and
[1:12:22]
for all.
[1:12:22]
Thank you.
[1:12:27]
Cecilia marquez Well Cecilia
[1:12:28]
comes to the microphone could
[1:12:28]
Laurie Lips?
[1:12:32]
Lipson Noelia Carolyn Jason
[1:12:33]
Poggio, Chris Kate and Amy
[1:12:37]
Fossett please come to
[1:12:37]
the front row.
[1:12:37]
>> Please begin.
[1:12:41]
Thank you.
[1:12:42]
My name is Cecilia marquez.
[1:12:43]
I'm born and raised in San
[1:12:46]
Diego.
[1:12:47]
I'm a single mother, a
[1:12:47]
homeowner and a 24 year
[1:12:48]
employee at San Diego Gas and
[1:12:50]
Electric.
[1:12:51]
I'm also a proud union officer
[1:12:55]
and organizer at ibew Local
[1:12:55]
465.
[1:12:56]
The city has been studying this
[1:12:56]
for decades and it's time to
[1:13:00]
stop.
[1:13:01]
San Diego is a beautiful city
[1:13:02]
but when I look around I see
[1:13:04]
bigger priorities that we
[1:13:05]
should be focusing on
[1:13:06]
the homelessness, affordable
[1:13:09]
housing, fixing our storm
[1:13:10]
drains, infrastructure, public
[1:13:14]
transit And in this study
[1:13:15]
there's no guarantee that our
[1:13:16]
jobs will carry over to a city
[1:13:16]
ran utility.
[1:13:19]
And even if they do, wages,
[1:13:20]
salaries and benefits could
[1:13:21]
change considerably.
[1:13:24]
So I urge the city council to
[1:13:25]
not proceed any further with
[1:13:25]
this effort.
[1:13:29]
Let's stop wasting our tax
[1:13:29]
dollars.
[1:13:30]
This is wrong and the city has
[1:13:30]
much bigger priorities.
[1:13:34]
Municipal association It is
[1:13:34]
union busting.
[1:13:35]
>> Thank you.
[1:13:36]
Thank you.
[1:13:41]
Laurie Lipman Hello Council
[1:13:46]
members.
[1:13:47]
I'm Laurie Litzman, a
[1:13:47]
constituent of District three
[1:13:50]
sd Jean e continues to put
[1:13:51]
profits before people.
[1:13:54]
For decades we've been we've
[1:13:55]
built an energy system that
[1:13:59]
transports power long distances
[1:14:00]
,losing power along the way
[1:14:01]
while increasing costs and
[1:14:01]
vulnerability.
[1:14:05]
The Sunrise Powerlink destroyed
[1:14:05]
habitat impact and cultural
[1:14:10]
significance in significant
[1:14:10]
lands and disrupt its disrupted
[1:14:14]
communities.
[1:14:15]
Today those transmission
[1:14:16]
corridors are part of a system
[1:14:19]
that routinely shuts down power
[1:14:19]
to reduce wildfire risk.
[1:14:23]
This is not smart energy.
[1:14:24]
Sd g e customers pay among
[1:14:28]
the highest rates in California
[1:14:29]
while utility executives and
[1:14:33]
shareholders continue to profit
[1:14:34]
,many residents are being
[1:14:34]
forced to choose between
[1:14:35]
necessities and keeping
[1:14:38]
the lights on.
[1:14:38]
Energy is an essential public
[1:14:39]
service.
[1:14:43]
It should be accountable to
[1:14:44]
the people not corporate
[1:14:44]
profit.
[1:14:45]
Basically that does conclude
[1:14:45]
your time.
[1:14:47]
Thank you.
[1:14:57]
Next speaker Noelia Collin Good
[1:14:57]
afternoon.
[1:14:58]
My name is Noelia Colon and I'm
[1:14:59]
a welder.
[1:15:02]
Jeannie I'm four and a proud
[1:15:02]
member of ibew for six five.
[1:15:06]
I'm proud to be the first woman
[1:15:06]
welder in our union's history
[1:15:07]
of over 100 years.
[1:15:10]
This career has changed My life
[1:15:11]
gave me opportunities financial
[1:15:11]
independence and a future I
[1:15:14]
never imagined for myself.
[1:15:15]
I understand that people are
[1:15:16]
frustrated with utility costs.
[1:15:20]
Those concerns are valid and do
[1:15:20]
deserve to be heard and
[1:15:21]
discussed.
[1:15:21]
We pay those too and we live
[1:15:24]
here as well.
[1:15:25]
But when I read the study I
[1:15:25]
didn't see enough discussion
[1:15:26]
about the workers who operate
[1:15:29]
maintain and respond to
[1:15:29]
emergencies on the system every
[1:15:30]
day.
[1:15:30]
I didn't see myself I didn't
[1:15:34]
see my union brothers and
[1:15:34]
sisters.
[1:15:35]
I didn't see the young women
[1:15:36]
who MAY 1st day follow the path
[1:15:36]
that I did part that I did.
[1:15:39]
I ask that you consider not
[1:15:40]
only the infrastructure but
[1:15:40]
the people behind it
[1:15:41]
the workforce, the training,
[1:15:44]
the experience, the careers,
[1:15:45]
the culture, all the hustlers
[1:15:45]
that serve that community for
[1:15:46]
generations.
[1:15:49]
I was born and raised here in
[1:15:49]
San Diego.
[1:15:50]
I love the city and that's
[1:15:53]
exactly why I'm asking you to
[1:15:53]
think carefully about
[1:15:54]
the people who serve and
[1:15:55]
sacrifice for it every day.
[1:15:57]
>> Thank you.
[1:16:02]
>> Jason Paglia, Jason Paglia.
[1:16:02]
Okay.
[1:16:10]
Moving on Chris Kate Good
[1:16:10]
afternoon.
[1:16:11]
Council PRESIDENT Members of
[1:16:12]
the council Chris Kate on
[1:16:15]
behalf of the San Diego
[1:16:16]
Regional Chamber of Commerce.
[1:16:17]
The Phase two study claims I
[1:16:20]
mean just what utility would
[1:16:21]
save San Diegans $130 billion?
[1:16:22]
Let's be direct When something
[1:16:25]
sounds too good to be true, it
[1:16:26]
usually is giving false hope to
[1:16:29]
San Diegans at a time when
[1:16:30]
affordability is top of mind.
[1:16:31]
The reality is that municipal
[1:16:34]
ization is a dangerous, costly
[1:16:35]
gamble.
[1:16:35]
Startup costs alone could reach
[1:16:36]
$9 billion a year or more.
[1:16:40]
Money the city simply does not
[1:16:40]
have nor residents can afford
[1:16:41]
to take on as debt.
[1:16:44]
This doesn't even account for
[1:16:44]
massive annual operating costs
[1:16:45]
wildfire insurance cost
[1:16:47]
overruns or litigation that
[1:16:48]
residents and businesses would
[1:16:53]
be forced to bankroll.
[1:16:54]
>> Pursuing a takeover of our
[1:16:54]
energy infrastructure is a
[1:16:55]
costly distraction that
[1:16:58]
undermines our economic
[1:16:59]
stability and risk our electric
[1:16:59]
reliability.
[1:17:02]
Past city councils have rightly
[1:17:03]
rejected this path time and
[1:17:04]
again because the risks
[1:17:04]
continue to far outweigh any
[1:17:08]
speculative benefits.
[1:17:08]
We urge you to reject this
[1:17:09]
proposal once and for all.
[1:17:11]
Thank you.
[1:17:16]
Amy Fossett.
[1:17:17]
>> Good afternoon.
[1:17:18]
Amy Fossett with the Building
[1:17:22]
Industry Association of San
[1:17:22]
Diego.
[1:17:23]
I'm here today to talk more
[1:17:24]
about from my personal and
[1:17:27]
professional experience working
[1:17:27]
here at the city.
[1:17:28]
I was had the honor of working
[1:17:31]
here over for over 20 years in
[1:17:31]
almost every branch of
[1:17:32]
government.
[1:17:35]
The city is not structured
[1:17:36]
organizationally nor does it
[1:17:36]
have the expertise or
[1:17:40]
the financial resources to take
[1:17:40]
on such an endeavor.
[1:17:41]
I too am concerned about energy
[1:17:41]
rates.
[1:17:45]
But the city of San Diego is
[1:17:45]
not the solution to that
[1:17:46]
problem.
[1:17:49]
So I ask you to please move on
[1:17:50]
from this endeavor and focus on
[1:17:51]
the priorities and issues that
[1:17:52]
you already have on your plate.
[1:17:57]
Thank you.
[1:17:58]
>> Thank you.
[1:17:58]
Our next speaker is Marcy
[1:17:59]
Weaver.
[1:18:02]
While Marcy approaches
[1:18:03]
the microphone, could Mark
[1:18:07]
Kersey.
[1:18:11]
Gene Wilder, Al Sanchez and
[1:18:12]
Matt Kaczynski Please come sit
[1:18:16]
in the front row.
[1:18:17]
Good afternoon, Council members
[1:18:18]
and city staff.
[1:18:21]
My name is Marcy Weaver, ceo
[1:18:22]
Controller MR. Chamber of
[1:18:22]
Commerce.
[1:18:23]
I'm here today on behalf of
[1:18:26]
the businesses we represent to
[1:18:26]
the throughout South County.
[1:18:27]
Our business community depends
[1:18:31]
on a reliable, affordable and
[1:18:32]
predictable energy to operate,
[1:18:36]
grow and create jobs in our
[1:18:36]
region.
[1:18:37]
While we appreciate the effort
[1:18:37]
that has gone into
[1:18:40]
the feasibility study, we are
[1:18:41]
concerned that there is still
[1:18:42]
not enough information
[1:18:45]
available to fully understand
[1:18:46]
financial, operational and long
[1:18:50]
term impacts of the municipal
[1:18:51]
politician accounts.
[1:18:54]
We also want to acknowledge
[1:18:55]
the significant wildfire
[1:18:59]
mitigation work and ongoing
[1:19:00]
investment that sgmd has made
[1:19:04]
across the region.
[1:19:05]
Chula Vista has had close calls
[1:19:08]
with five wildfires.
[1:19:09]
And this is critically
[1:19:09]
important issue for our
[1:19:10]
community.
[1:19:14]
We have seen firsthand the work
[1:19:18]
that fda has done to straighten
[1:19:19]
grid build reliability and
[1:19:23]
reduce fire risk being Thank
[1:19:24]
you for your comments.
[1:19:24]
That does conclude your time.
[1:19:28]
Next speaker is Mark Kersey.
[1:19:28]
Good afternoon council
[1:19:32]
PRESIDENT And members of
[1:19:33]
the council Mark Kersey
[1:19:33]
representing San Diego
[1:19:34]
Taxpayers.
[1:19:34]
Having said on your side of
[1:19:37]
the dais for eight years I'm
[1:19:38]
going to ask you a question Is
[1:19:41]
this really a headache that you
[1:19:42]
guys want to take on?
[1:19:43]
You guys already have a lot of
[1:19:44]
headaches and several of them
[1:19:47]
concern utilities.
[1:19:47]
You get thousands of complaints
[1:19:48]
about water rate increases.
[1:19:51]
You get browbeat over the cost
[1:19:52]
of pure water.
[1:19:53]
You get criticized for failed
[1:19:56]
stormwater channels and you
[1:19:57]
take errors over trash fees
[1:19:59]
particularly when third party
[1:20:00]
estimates don't match reality
[1:20:01]
Exactly like what could happen
[1:20:04]
with this issue.
[1:20:05]
Make no mistake running
[1:20:05]
the power grid will only make
[1:20:09]
these other headaches seem
[1:20:09]
minor by comparison.
[1:20:10]
The minute this ill fated
[1:20:14]
eminent domain takeover closes
[1:20:15]
,people will expect you to
[1:20:15]
immediately lower their
[1:20:16]
electric rates.
[1:20:20]
But you won't be able to
[1:20:20]
because you have spent billions
[1:20:21]
to buy the system and might
[1:20:24]
actually need those rates to
[1:20:24]
increase to pay off the massive
[1:20:25]
bond debt and associated
[1:20:28]
integration costs.
[1:20:29]
You all have a tough job.
[1:20:30]
You have enough headaches.
[1:20:30]
Save yourself this one.
[1:20:33]
Thank you.
[1:20:34]
Thank you for your comments.
[1:20:38]
Next speaker is Jay Wilder.
[1:20:38]
If you're holding a sign,
[1:20:39]
remember there are people
[1:20:42]
behind you that might want to
[1:20:43]
see our smiling faces up here.
[1:20:44]
So use the back row if you want
[1:20:48]
to hold the signs up so we can
[1:20:49]
read them because you big fonts
[1:20:50]
but have a courtesy to
[1:20:50]
the people behind you.
[1:20:53]
Thank you.
[1:20:53]
Hello.
[1:20:54]
Thank you for your time.
[1:20:55]
My name is Jay Walder.
[1:20:58]
I'm PRESIDENT Of ibew Local 465
[1:20:59]
and alignment during
[1:20:59]
the alignment.
[1:21:02]
I'm also a marine Corps veteran
[1:21:03]
husband father to two kids and
[1:21:06]
I'm and I've defended
[1:21:07]
the nation and our freedom.
[1:21:08]
Today I am speaking to defend
[1:21:08]
my union members and protect
[1:21:12]
their jobs.
[1:21:13]
Don't do this like I've trained
[1:21:14]
for 20 plus years under ibew
[1:21:17]
desk to learn this complex and
[1:21:17]
ever changing system and I'm
[1:21:18]
learning more every day.
[1:21:22]
This is not something you can
[1:21:22]
just learn overnight.
[1:21:23]
It will take you decades and
[1:21:26]
all the while my vw brothers
[1:21:27]
and sisters and I will fight
[1:21:28]
you every step of the way to
[1:21:31]
protect union jobs.
[1:21:32]
Let's not go to war.
[1:21:33]
Let's find a way to work
[1:21:36]
together to address real
[1:21:37]
priorities in San Diego like
[1:21:38]
homelessness especially veteran
[1:21:41]
homelessness, mental health and
[1:21:42]
addiction.
[1:21:42]
This is where we should be
[1:21:44]
spending valuable city
[1:21:44]
resources.
[1:21:49]
Thank you for your time.
[1:21:49]
>> Thank you.
[1:21:54]
Our next speaker is Al Sanchez
[1:21:55]
>> Thank you, council members.
[1:21:56]
My name's Al Sanchez and I'm
[1:21:59]
here on behalf of Local 89 and
[1:22:00]
my business manager Bella
[1:22:00]
Marcelo.
[1:22:04]
We're here today to communicate
[1:22:04]
our opposition to the efforts
[1:22:09]
of bringing the work union
[1:22:09]
contractors currently do
[1:22:10]
in-house.
[1:22:13]
We do not mean we do not
[1:22:14]
benefit the city taxpayers or
[1:22:14]
our employees.
[1:22:18]
The studies have shown
[1:22:18]
the studies have not proven you
[1:22:23]
with real opportunities costs
[1:22:23]
for what is needed to actually
[1:22:28]
manage this reliably utility
[1:22:28]
and keep it keep the lights on
[1:22:29]
24 hours.
[1:22:33]
Nor does it address the costs
[1:22:33]
needed for worker safety
[1:22:34]
working in highly highly
[1:22:38]
skilled working workforce,
[1:22:38]
skilled workforce and
[1:22:39]
competitive wages and benefits
[1:22:42]
and construction expertise in
[1:22:43]
building and maintaining
[1:22:44]
the grid and pipelines in San
[1:22:45]
Diego.
[1:22:51]
We don't believe this business
[1:22:51]
is served in the cities.
[1:22:56]
>> Good interest of doing this
[1:22:57]
>> We asked the council to
[1:22:58]
direct their time and resources
[1:22:59]
in delivering the city
[1:22:59]
services.
[1:23:04]
>> Thank you Mayor Because
[1:23:05]
Greensky while Matt approaches
[1:23:05]
the microphone could make a
[1:23:09]
erroneous Britney says Rihanna
[1:23:13]
barrel Bill Powers and
[1:23:13]
allegedly Audra please come to
[1:23:18]
the front row.
[1:23:18]
Please begin.
[1:23:19]
Good afternoon council members.
[1:23:24]
My name is Max Stransky I'm
[1:23:24]
speaking We have today of acp
[1:23:25]
Local 127 the dedicated city
[1:23:28]
workers who keeps an you
[1:23:29]
running as you know local 127
[1:23:29]
represents the hardworking
[1:23:33]
employees of our maintenance
[1:23:34]
labor skilled trades and
[1:23:34]
equipment operators and so
[1:23:38]
forth.
[1:23:38]
Our members are on the front
[1:23:39]
frontlines serving the city
[1:23:40]
every single day and their
[1:23:42]
stability is our top priority.
[1:23:43]
It is our concern that that's
[1:23:47]
stability and the fiscal health
[1:23:47]
of our city that local 127 must
[1:23:51]
express its continued objection
[1:23:51]
regarding public power.
[1:23:52]
We have met with the proponents
[1:23:56]
to express the same concerns to
[1:23:57]
them.
[1:23:57]
While we understand the desire
[1:23:58]
to explore alternative models,
[1:24:01]
we believe this current
[1:24:02]
proposal presents too many
[1:24:02]
unresolved risks.
[1:24:05]
One lack of consensus This
[1:24:06]
initiative has come before
[1:24:09]
the council multiple times and
[1:24:10]
has struggled to find viable
[1:24:11]
path forward Demonstrating
[1:24:11]
the community and leadership
[1:24:15]
remained deeply divided on this
[1:24:15]
issue.
[1:24:19]
Workforce uncertainty The Phase
[1:24:20]
two report does not provide
[1:24:20]
the concrete assurances.
[1:24:21]
>> Thank you.
[1:24:21]
That does conclude your time.
[1:24:27]
Mark o'Brien is Good afternoon
[1:24:27]
Council My name is Mark o'Brien
[1:24:28]
is political director of
[1:24:31]
the San Diego and Imperial
[1:24:31]
County Labor Council.
[1:24:32]
We're proud to represent over
[1:24:33]
100 unions and 200,000 working
[1:24:36]
families including our brothers
[1:24:37]
and sisters in ibew 46 five and
[1:24:38]
we're here standing with them
[1:24:41]
in efforts to oppose them in
[1:24:42]
its opposition to this power
[1:24:42]
company.
[1:24:43]
We know the struggles of our
[1:24:45]
members to make it in San Diego
[1:24:46]
right now and we know that
[1:24:47]
consumers are paying the same
[1:24:47]
thing.
[1:24:48]
But we also know that right now
[1:24:51]
our city resources are
[1:24:51]
stretched very, very thin and
[1:24:52]
now is not the time to risk
[1:24:53]
those limited resources on
[1:24:56]
the utility take.
[1:24:56]
Workers could lose their
[1:24:57]
pensions and retirement and
[1:25:00]
the hard fought benefits.
[1:25:01]
We stand with the hundreds of
[1:25:02]
workers that could lose these
[1:25:02]
benefits.
[1:25:03]
Please don't gamble with their
[1:25:03]
jobs.
[1:25:04]
We have bigger priorities and
[1:25:04]
we thank you for your support.
[1:25:07]
>> Thank you.
[1:25:07]
Thank you.
[1:25:12]
Britney says hi.
[1:25:13]
Good afternoon council members.
[1:25:13]
Thank you so much for the time
[1:25:17]
to comment on this today.
[1:25:18]
Like many others here, we have
[1:25:18]
serious concerns with this
[1:25:22]
study in particular it doesn't
[1:25:22]
answer the critical question of
[1:25:26]
how much will it actually cost
[1:25:27]
to purchase the assets of
[1:25:27]
the utility.
[1:25:32]
First off, the report gives you
[1:25:33]
a range of between 2 and 2 and
[1:25:35]
a half and $7.5 billion a huge
[1:25:36]
range.
[1:25:39]
The cost to just purchase
[1:25:40]
the assets is $9.3 billion.
[1:25:44]
The study also omits some key
[1:25:45]
costs including the cost to
[1:25:46]
make our remaining customers
[1:25:49]
whole.
[1:25:50]
If the city were to leave
[1:25:51]
the surrounding cities and
[1:25:54]
unincorporated county would see
[1:25:54]
an increase in their rates.
[1:25:55]
There is precedent that says
[1:25:59]
that the city would need to
[1:26:00]
make sure that that does not
[1:26:01]
happen so there would be an
[1:26:04]
exit fee of billions of dollars
[1:26:05]
Finally the city this study
[1:26:06]
also isn't including
[1:26:09]
the significant wildfire risk
[1:26:10]
that is part of San Diego.
[1:26:10]
It doesn't include
[1:26:11]
the insurance costs or
[1:26:14]
mitigation.
[1:26:15]
Thank you very much.
[1:26:15]
Thank you.
[1:26:21]
Next speaker is Brianna Barrow.
[1:26:22]
>> Good afternoon, council
[1:26:22]
members.
[1:26:24]
My name is Brianna Berman and
[1:26:25]
local business owner and I also
[1:26:26]
run a local nonprofit.
[1:26:27]
So public power MAY be a good
[1:26:29]
idea and it MAY also be a
[1:26:30]
costly idea.
[1:26:30]
Both things can be true.
[1:26:31]
My concern is not about
[1:26:34]
protecting one institution over
[1:26:34]
the other.
[1:26:35]
My concern is about
[1:26:35]
workability, accountability and
[1:26:36]
integrity.
[1:26:39]
If the city is going to pursue
[1:26:39]
a public power model,
[1:26:40]
the process must be
[1:26:40]
transparent.
[1:26:43]
The numbers must be complete
[1:26:43]
and the public must understand
[1:26:44]
exactly what they're being
[1:26:48]
asked to carry as a ratepayer I
[1:26:49]
want relief as a taxpayer.
[1:26:49]
I want responsibility as a
[1:26:50]
contractor.
[1:26:53]
I want fair opportunity as a
[1:26:53]
community centered business
[1:26:54]
owner.
[1:26:54]
I want solutions that did not
[1:26:58]
leave the people with the least
[1:26:58]
margin carrying the most risk
[1:26:59]
at this time without a clear
[1:27:03]
and definitive understanding of
[1:27:04]
the full cost, the risk and
[1:27:05]
the impact on city communities
[1:27:07]
I cannot support moving forward
[1:27:08]
with the municipal ization and
[1:27:08]
I ask that you do not either.
[1:27:12]
Thank you.
[1:27:13]
Thank you.
[1:27:13]
Bill Powers While Bill
[1:27:18]
approaches the microphone could
[1:27:19]
I have Mike Miller okay all
[1:27:22]
the Monday Neil Winter John
[1:27:26]
Mattis and Barbara Pinto
[1:27:27]
approach the front row please
[1:27:31]
begin Bill Powers Board Member,
[1:27:32]
Public Power San Diego I'll
[1:27:35]
start with Labor.
[1:27:36]
The veteran utility workers
[1:27:36]
will be key to the new
[1:27:41]
utility's credibility Labor
[1:27:42]
does need to have a seat on
[1:27:42]
the utilities governing board.
[1:27:43]
Labor also needs to be a part
[1:27:46]
of the blue ribbon panel that
[1:27:47]
selects the critical initial
[1:27:48]
governing board with the die
[1:27:51]
gets cast.
[1:27:52]
New Jersey's first public power
[1:27:54]
study for the city was in 2020.
[1:27:55]
That study only looked at
[1:27:55]
distribution a distribution
[1:27:59]
only utility low voltage.
[1:28:00]
It did not look at transmission
[1:28:03]
and distribution phase one and
[1:28:04]
phase two that only at&t at&t
[1:28:08]
utility would be completely
[1:28:09]
contained within the city's
[1:28:09]
boundaries.
[1:28:10]
Crossing jurisdictional
[1:28:13]
boundaries would trigger Lasko
[1:28:14]
review that would occur six
[1:28:14]
years to the implementation
[1:28:17]
schedule That would be a
[1:28:18]
momentum killer for public
[1:28:18]
power.
[1:28:22]
In San Diego we obtained a
[1:28:23]
Phase two financial model
[1:28:23]
through a Public Records Act
[1:28:24]
request New Dennis set
[1:28:28]
the model up so you can click a
[1:28:28]
button and look at a
[1:28:29]
distribution only structure.
[1:28:30]
>> There is no more work to do
[1:28:33]
to assess distribution.
[1:28:33]
>> That is the way to go.
[1:28:34]
Thank you.
[1:28:36]
Thank you.
[1:28:46]
Next speakers allegedly Audra
[1:28:51]
Yeah so I mean as dg any roms
[1:28:52]
Peter to pay Paul but so do you
[1:28:53]
guys and so that's what's
[1:28:57]
concerning about this going
[1:28:58]
into your hands especially when
[1:28:58]
you talk about savings and that
[1:29:02]
not really being feasible of
[1:29:03]
course not because sd g and e
[1:29:07]
is aggressively opposed to you
[1:29:08]
guys doing this So this will
[1:29:09]
end up in litigation So it will
[1:29:12]
cost the people more than
[1:29:13]
the billions of dollars that
[1:29:17]
you are you know, talking about
[1:29:18]
here And I mean with the storm
[1:29:18]
infrastructure needing $5
[1:29:19]
billion, it's like how many
[1:29:23]
billions of dollars do you guys
[1:29:24]
need in order to provide
[1:29:24]
the things?
[1:29:28]
But again, you can't be trusted
[1:29:29]
with this type of thing when
[1:29:29]
you are not good stewards of
[1:29:33]
our money and when this is
[1:29:34]
going to be something that is
[1:29:34]
San Diego community power is
[1:29:38]
engaged with when they're
[1:29:38]
talking about keeping data
[1:29:39]
centers on and having
[1:29:43]
the public in the community not
[1:29:44]
have power during that time
[1:29:45]
that is extremely egregious and
[1:29:45]
people need to pay attention to
[1:29:49]
that because there's meetings
[1:29:50]
that are talking about it.
[1:29:50]
>> Thank you.
[1:29:54]
Next speaker is Mike Miller.
[1:30:01]
>> Good afternoon counsel.
[1:30:02]
The more we learn about Jionni
[1:30:02]
the more appalled I am at
[1:30:05]
the amount of corporate greed
[1:30:06]
that goes on that organization.
[1:30:07]
Their average profit for
[1:30:10]
the last four years is over
[1:30:10]
$800 million and their parent
[1:30:16]
company also spends nearly $300
[1:30:16]
million annually in campaign
[1:30:17]
donations and lobbying and
[1:30:19]
counting on $2,000 to Donald
[1:30:24]
Trump's inauguration last year
[1:30:25]
Obviously there are a lot of
[1:30:26]
questions and things that need
[1:30:26]
to be figured out before this
[1:30:30]
goes into place and it's
[1:30:30]
obviously an informational item
[1:30:31]
and I'm grateful you're taking
[1:30:35]
the time to consider it and I
[1:30:36]
hope that you consider to look
[1:30:41]
at it more because personally I
[1:30:42]
just can't imagine what I would
[1:30:42]
do with an excess amount of
[1:30:45]
even $1 million every year And
[1:30:46]
I'm sure there's a better way
[1:30:46]
that we can find to use that
[1:30:47]
money to help the people of San
[1:30:48]
Diego.
[1:30:55]
>> Thank you.
[1:30:55]
Thank you.
[1:30:56]
Gail via Marty Well Gail comes
[1:30:59]
to the microphone.
[1:31:00]
You do have time ceded to you
[1:31:00]
by Neil Winter.
[1:31:05]
Neil can you raise your hand?
[1:31:05]
Okay.
[1:31:06]
Thank you.
[1:31:06]
You will have two minutes.
[1:31:07]
Thank you.
[1:31:08]
My name is Gail b one time a
[1:31:11]
proud resident of District nine
[1:31:12]
and I'm also the chair of
[1:31:13]
the board of directors of
[1:31:13]
Public Power San Diego.
[1:31:16]
And I'd like to make an
[1:31:17]
important distinction here.
[1:31:17]
There's a difference between a
[1:31:22]
nonprofit public utility versus
[1:31:22]
a for profit investor owned
[1:31:23]
utility.
[1:31:28]
And the definition of municipal
[1:31:29]
as a nonprofit public utility
[1:31:33]
does not have to be quote run
[1:31:34]
by the city.
[1:31:35]
So you can all kind of public
[1:31:39]
thank GOD because there are
[1:31:39]
challenges but there are cities
[1:31:44]
this has been something that
[1:31:45]
has been done for 100 years.
[1:31:45]
All right.
[1:31:50]
And it's been done in over 40
[1:31:51]
cities in California including
[1:31:56]
Sacramento, by the way they do
[1:31:57]
it And on the average they have
[1:32:02]
half the rates we do And better
[1:32:03]
reliability.
[1:32:03]
So I think that's one key
[1:32:04]
point.
[1:32:07]
I just like to leave you with
[1:32:08]
the other point is our union
[1:32:09]
brothers and sisters, they
[1:32:13]
deserve to have certainly their
[1:32:14]
benefits, their compensation,
[1:32:14]
their seniority, all of that
[1:32:15]
protected.
[1:32:15]
I don't think that was really
[1:32:20]
part of the study.
[1:32:21]
I mean I don't think it was
[1:32:22]
meant to be part of the study
[1:32:26]
but that's certainly part of
[1:32:26]
any conversation I have
[1:32:27]
personally been involved with.
[1:32:32]
They talked about the possible
[1:32:32]
future of a nonprofit utility.
[1:32:37]
In fact, public utilities have
[1:32:37]
80 to 90% unionization rate
[1:32:38]
whereas private utilities have
[1:32:43]
I guess what, a 30%
[1:32:43]
unionization rate.
[1:32:44]
All right.
[1:32:49]
So there's a really big
[1:32:49]
difference.
[1:32:50]
So the unions would benefit And
[1:32:51]
I know that you know you have a
[1:32:55]
contract with sd g and that
[1:32:55]
precludes certain conversations
[1:33:01]
but you would benefit union
[1:33:01]
members would benefit both in
[1:33:02]
terms of their families and
[1:33:03]
their immediate costs and in
[1:33:07]
terms of their status.
[1:33:08]
No one is looking to change any
[1:33:08]
of that.
[1:33:09]
Thank you very much.
[1:33:12]
Thank you.
[1:33:13]
John Madison.
[1:33:13]
Next, while John approaches
[1:33:18]
the microphone, I would ask
[1:33:19]
that Patricia Mendoza
[1:33:25]
the ferryman, Adriana Cizik and
[1:33:32]
Kevin Machado please approach
[1:33:32]
the front row please me.
[1:33:33]
>> John matters here.
[1:33:36]
I'm here on the reality of
[1:33:37]
the crisis facing the city of
[1:33:38]
San Diego.
[1:33:43]
Proudly you took the first step
[1:33:43]
in a path forward.
[1:33:48]
The crisis is one quarter of
[1:33:48]
the people here in this city
[1:33:49]
can't afford their bills.
[1:33:55]
Wants to month they can't pay.
[1:33:55]
If you ask the question why
[1:34:00]
can't they?
[1:34:00]
Is it because they have
[1:34:01]
the highest rates in the state?
[1:34:06]
Is it because they want another
[1:34:06]
8% rate increase?
[1:34:07]
That's the reality.
[1:34:13]
We have a powerful quote.
[1:34:14]
We have a plan.
[1:34:15]
We have a plan that saves your
[1:34:18]
constituents tens of thousands
[1:34:18]
of dollars.
[1:34:24]
Help us get out of this crisis
[1:34:25]
of unaffordability of a key
[1:34:26]
component of our life here in
[1:34:26]
San Diego.
[1:34:31]
And that is our outrageous g&a
[1:34:31]
rate.
[1:34:32]
>> Thank you.
[1:34:34]
Thank you.
[1:34:42]
>> Barbara Pinto.
[1:34:43]
Barbara, you do have time ceded
[1:34:43]
to you by Isidora Lopez Magali.
[1:34:48]
Can you raise your hand please?
[1:34:48]
Thank you.
[1:34:49]
And an okay.
[1:34:49]
Ana Thank you.
[1:34:53]
You have three minutes.
[1:34:53]
Thank you.
[1:34:54]
Good afternoon.
[1:34:54]
My name is Barbara Pinto and
[1:35:00]
I'm a resident of San Diego,
[1:35:01]
the District 11 Loganathan and
[1:35:01]
a member of eighth.
[1:35:06]
I have been a resident since
[1:35:06]
the 40s in San Diego and
[1:35:10]
selling gas and electric has
[1:35:11]
been our only utility company
[1:35:12]
So it is a monopoly on
[1:35:17]
utilities provided since then
[1:35:17]
and before Sandy Again we are
[1:35:18]
paying the highest prices for
[1:35:22]
homes rent, gas, food and
[1:35:27]
utilities more almost than
[1:35:28]
anyone in the nation.
[1:35:29]
Our utility provider dictates
[1:35:34]
cost increases services and
[1:35:35]
sets no limit on their profits.
[1:35:40]
Last year they made a whopping
[1:35:41]
$563 million in profits and
[1:35:46]
that figure was roughly one
[1:35:47]
third lower than it was
[1:35:47]
the previous year.
[1:35:48]
I'm a senior citizen living on
[1:35:52]
a fixed income of Social
[1:35:53]
Security and a modest
[1:35:53]
retirement.
[1:35:58]
I went back to work around 2018
[1:35:59]
to keep up with the cost of
[1:36:00]
living and inflation.
[1:36:05]
i lost my job due to covid.
[1:36:11]
In 2021 I prioritize my rent
[1:36:12]
and I got behind in my water my
[1:36:12]
utility.
[1:36:16]
My current utility bill is over
[1:36:16]
$3,500.
[1:36:17]
I enlisted in a debt
[1:36:21]
forgiveness program and said
[1:36:22]
they would work with me to
[1:36:22]
forgive part of my debt.
[1:36:26]
I agreed to pay $111 a month
[1:36:26]
for 12 consecutive months but
[1:36:31]
that cost changes according to
[1:36:32]
my everyday usage.
[1:36:37]
I wasn't told that the average
[1:36:38]
monthly cost now is about $140
[1:36:38]
a month.
[1:36:43]
This is difficult when you're
[1:36:43]
on a fixed income and you're
[1:36:44]
trying to do a budget.
[1:36:49]
Why is there no limit on what
[1:36:49]
these companies can make in
[1:36:50]
profits?
[1:36:54]
Even with my return to work I
[1:36:55]
am struggling.
[1:36:55]
We need services offered at
[1:37:01]
more affordable rates.
[1:37:01]
We need more competitive
[1:37:02]
companies putting people before
[1:37:03]
profits.
[1:37:09]
Thank you.
[1:37:09]
>> Thank you.
[1:37:10]
Next speaker is Patricia
[1:37:16]
Mendoza.
[1:37:17]
>> Hi, my name is Patrick and
[1:37:22]
I'm a member of Ace Energy as a
[1:37:22]
basic necessity that every
[1:37:23]
family depends on.
[1:37:29]
We need it to cook continue to
[1:37:29]
cut meals, keep the lights on
[1:37:30]
after dark, wash close to our
[1:37:31]
children and have clean clothes
[1:37:31]
to wear.
[1:37:34]
Yet these high utility rates
[1:37:35]
make everyday activities a
[1:37:36]
source of stress, often forcing
[1:37:40]
families to make difficult
[1:37:40]
choices about the bills to pay
[1:37:41]
and which bills to put off.
[1:37:46]
It is especially troubling now
[1:37:46]
that summer's here it's going
[1:37:47]
to be more hot.
[1:37:47]
People can't afford air
[1:37:48]
conditioner.
[1:37:48]
It's going to get colder
[1:37:49]
weather outside.
[1:37:55]
People can't afford adequate
[1:37:56]
heating.
[1:37:56]
But right now I also want to
[1:37:57]
acknowledge all our brothers
[1:38:02]
and sisters here in our union
[1:38:02]
brothers and sisters here I
[1:38:03]
heard it and I had another
[1:38:04]
speech written But I want to
[1:38:08]
hear you guys to I want to put
[1:38:08]
their voice out there too
[1:38:09]
because we need public power.
[1:38:09]
We really do.
[1:38:14]
But it concerns on your
[1:38:15]
concerns about job security.
[1:38:15]
We do need public power and we
[1:38:19]
need it not at the expense of
[1:38:20]
other working class people,
[1:38:21]
other working class jobs.
[1:38:21]
Thank you.
[1:38:27]
That does conclude your time.
[1:38:27]
>> We can work together.
[1:38:28]
We can Women I'm working.
[1:38:32]
We can work together.
[1:38:33]
We can work together.
[1:38:33]
We're still talking about So
[1:38:38]
they make their man work
[1:38:39]
together to make this
[1:38:39]
transition good.
[1:38:40]
Okay.
[1:38:43]
All all right.
[1:38:44]
>> She set the tone.
[1:38:44]
We're not going to do that
[1:38:45]
again.
[1:38:45]
Okay?
[1:38:49]
We're going to keep this
[1:38:50]
simple.
[1:38:51]
You guys have been fantastic.
[1:38:51]
So I'm passionate on both
[1:38:51]
sides.
[1:38:55]
I've been clear and unambiguous
[1:38:56]
but let's have a good civil
[1:39:01]
dialog Now you have three
[1:39:02]
people sitting your time When I
[1:39:02]
call your name please raise
[1:39:03]
your hand to confirm your year
[1:39:07]
And above all is honor.
[1:39:13]
Thank you Gary Carter.
[1:39:13]
Gary Clark.
[1:39:14]
Corey of Corey.
[1:39:14]
Sorry.
[1:39:19]
Thank you.
[1:39:20]
Oscar Gomez Junior.
[1:39:20]
Thank you.
[1:39:21]
Your four minutes please begin.
[1:39:24]
Good afternoon, Council members
[1:39:25]
and city staff.
[1:39:26]
My name is Nate Berryman,
[1:39:26]
business manager of
[1:39:27]
the International Brotherhood
[1:39:30]
of Electrical Workers Local
[1:39:30]
Union for 65 I represent 2900
[1:39:31]
union utility workers here in
[1:39:36]
San Diego and several counties.
[1:39:37]
And look, I know why we're
[1:39:37]
really here.
[1:39:38]
People are not happy with
[1:39:42]
energy.
[1:39:43]
They're not happy with their
[1:39:43]
rates or their skyrocketing
[1:39:44]
profits.
[1:39:44]
People are mad at the never
[1:39:48]
ending corporate profits that
[1:39:49]
are pulled from our pockets and
[1:39:49]
funneled to separate
[1:39:53]
shareholders And to be 100%
[1:39:53]
honest my members are meant to
[1:39:54]
Our members have more in common
[1:39:55]
with you in this room than
[1:39:59]
utility CEOs or executives.
[1:40:00]
Working class people are
[1:40:00]
struggling.
[1:40:01]
They're struggling to get by
[1:40:04]
and something needs to be done
[1:40:05]
to provide support.
[1:40:06]
But I promise you brothers and
[1:40:06]
sisters, this ain't it.
[1:40:11]
Our union and our members share
[1:40:11]
a mutual interest in the city's
[1:40:12]
success and the success of our
[1:40:13]
communities success of our
[1:40:17]
mayor, our council and
[1:40:18]
the utility who's delivering
[1:40:18]
these essential services to San
[1:40:22]
Diego's municipal division is
[1:40:23]
bad for everyone.
[1:40:23]
It will not solve for
[1:40:24]
affordability.
[1:40:24]
It will destroy our union
[1:40:29]
contracts and force layoffs of
[1:40:29]
union workers.
[1:40:30]
Each phase of the new study
[1:40:31]
continues to diminish or ignore
[1:40:35]
addressing worker protections
[1:40:36]
and safety the fire risk and
[1:40:36]
liability the city would assume
[1:40:41]
under urban exploitation and
[1:40:41]
the occurred that the city
[1:40:42]
would force to be take on with
[1:40:43]
this effort High voltage
[1:40:43]
infrastructure demand
[1:40:47]
significant investment and
[1:40:48]
the operating continue
[1:40:48]
The operating costs continue to
[1:40:49]
be significantly
[1:40:49]
underestimated.
[1:40:53]
There's no guarantee that
[1:40:53]
the infrastructure the city
[1:40:54]
purchases will be maintained
[1:40:55]
sufficiently To keep my members
[1:40:59]
safe I was in these chambers
[1:41:00]
just weeks ago when you were
[1:41:00]
debating closing public
[1:41:03]
bathrooms in order to close a
[1:41:04]
$175 million budget deficit.
[1:41:05]
What happens when you have a
[1:41:09]
budget deficit but now you run
[1:41:10]
the power company.
[1:41:11]
You can't just shut down a
[1:41:11]
substation.
[1:41:12]
You can't just turn the lights
[1:41:16]
off to save money or limit
[1:41:16]
the hours that you provide.
[1:41:17]
Electric service like the grid
[1:41:18]
is a public library You can't
[1:41:22]
balance the budget by robbing
[1:41:23]
resources from grid maintenance
[1:41:23]
or pole replacement.
[1:41:24]
If you do that you might have
[1:41:28]
mass outages, blackouts and
[1:41:28]
wildfires.
[1:41:29]
So where's the real cost
[1:41:29]
associated with the fire risk
[1:41:30]
and liability?
[1:41:33]
Where's the real numbers on
[1:41:34]
the billions dollars of debt
[1:41:35]
the city and our taxpayers will
[1:41:39]
carry for decades?
[1:41:40]
Each phase of the Nugent study
[1:41:41]
has not provided you or our
[1:41:41]
taxpayers with an accurate
[1:41:45]
picture of that risk of
[1:41:46]
the cost of the liability and
[1:41:46]
the risk the city will be
[1:41:51]
undertaking to municipal lies.
[1:41:56]
It's a lot It's $9 billion, $9
[1:41:57]
billion at a time where
[1:41:57]
the city is laying off workers
[1:41:58]
when the city is closing
[1:42:02]
bathrooms, the city is
[1:42:02]
defunding the bomb squad and
[1:42:03]
relying on donations to keep
[1:42:04]
your arts programs alive.
[1:42:07]
You just cut $7 million from
[1:42:08]
your own Climate Action Fund.
[1:42:12]
You don't have the money You
[1:42:13]
don't have the resources and
[1:42:14]
you don't have the expertise.
[1:42:14]
So we're asking you to please
[1:42:19]
not do this.
[1:42:20]
But I will end with this If
[1:42:20]
city genie doesn't offer
[1:42:25]
immediate rate relief to our
[1:42:26]
communities most at need, we
[1:42:31]
will be back here having
[1:42:31]
the same presentation with
[1:42:32]
the same advocacy and the same
[1:42:33]
level of frustration
[1:42:37]
The utility affordability
[1:42:38]
crisis isn't going away until
[1:42:38]
we sit down with honesty and
[1:42:43]
empathy for our communities
[1:42:43]
that are struggling.
[1:42:44]
I fear the cycle will continue
[1:42:45]
and the ibew stands ready and
[1:42:47]
willing to have that
[1:42:48]
conversation.
[1:42:55]
>> Thank you very much.
[1:42:55]
Thank you and Speaker lady And
[1:42:56]
if you think you could approach
[1:43:00]
the microphone, you have
[1:43:01]
several speakers seating time
[1:43:01]
to you.
[1:43:06]
Matthew Pendergrast, thank you
[1:43:06]
Randall and Driver thank you.
[1:43:19]
As an uncommon husband no, no.
[1:43:19]
Okay.
[1:43:20]
You will have a total of three
[1:43:20]
minutes then.
[1:43:24]
Okay.
[1:43:25]
Thank you so much for having
[1:43:25]
me.
[1:43:25]
I'm DR. Adrian Cusick.
[1:43:26]
I live in District three.
[1:43:30]
I served in the us Peace Corps
[1:43:31]
and I'm a member of cfa which
[1:43:31]
is a California faculty
[1:43:32]
association.
[1:43:33]
I teach environmental science
[1:43:36]
and sustainability sdsu My
[1:43:37]
students are bright, they're
[1:43:37]
motivated, they're innovative.
[1:43:42]
They get out there and gain
[1:43:42]
work experience.
[1:43:43]
Unfortunately they're learning
[1:43:44]
about the injustices that are
[1:43:48]
deeply embedded in our systems
[1:43:48]
and structures.
[1:43:49]
The sad reality that a utility
[1:43:50]
company is a monopoly
[1:43:55]
extracting wealth from
[1:43:55]
the community to transfer it to
[1:43:56]
its already wealthy CEOs and
[1:44:01]
shareholders is an example of
[1:44:01]
environmental and social
[1:44:02]
injustices that we've been
[1:44:06]
forced to live with This system
[1:44:07]
under the investor owned
[1:44:07]
utility makes life harder for
[1:44:08]
the average than Diegan and it
[1:44:12]
stifles innovation and
[1:44:12]
progress.
[1:44:13]
But there's a better way.
[1:44:17]
The Phase two public power
[1:44:17]
study clearly demonstrates that
[1:44:18]
it's financially, technically
[1:44:19]
and operationally feasible to
[1:44:23]
transition to a nonprofit
[1:44:24]
publicly owned utility.
[1:44:24]
The study focused on different
[1:44:29]
variations on one specific
[1:44:30]
scenario for acquiring
[1:44:30]
the grid.
[1:44:31]
It demonstrated that public
[1:44:35]
power will work in San Diego.
[1:44:36]
And it also demonstrated that
[1:44:36]
public power will be good for
[1:44:37]
San Diegans not only
[1:44:42]
financially but public power
[1:44:42]
would turn decision making over
[1:44:43]
to us the people who live here
[1:44:44]
and are impacted by local
[1:44:47]
energy decisions not
[1:44:48]
shareholders who probably
[1:44:48]
couldn't care less about
[1:44:49]
the struggles of everyday San
[1:44:54]
Diego's public power have been
[1:44:54]
successful in other cities So
[1:44:55]
it makes sense It would be
[1:44:59]
successful here where we pay
[1:45:00]
the highest electricity rates
[1:45:01]
in the continental United
[1:45:01]
States.
[1:45:02]
It's important to remember that
[1:45:05]
the phase two study is a
[1:45:06]
baseline and it shows that it's
[1:45:07]
possible We don't need to have
[1:45:11]
every single technical detail
[1:45:12]
worked out right now.
[1:45:13]
But what we do need to do is
[1:45:13]
commit to making action to
[1:45:17]
making it happen.
[1:45:18]
As local owners of the grid we
[1:45:18]
can determine what works best
[1:45:19]
for us.
[1:45:23]
We can ensure that Labor
[1:45:24]
remains whole and has agreement
[1:45:25]
agreements to ensure that
[1:45:25]
people operating the system are
[1:45:29]
involved in the decisions that
[1:45:30]
impact them.
[1:45:30]
We can tailor the scale of
[1:45:31]
the infrastructure and we can
[1:45:35]
explore different different
[1:45:36]
governance models.
[1:45:36]
We can trade the status quo for
[1:45:37]
low energy costs and local
[1:45:41]
control.
[1:45:42]
Imagine what that would do for
[1:45:43]
our city.
[1:45:43]
Lower energy costs are key to
[1:45:44]
economic growth Cutting
[1:45:47]
emissions, reducing
[1:45:48]
inequalities and spurring
[1:45:48]
innovation.
[1:45:49]
So once we're out from under
[1:45:54]
the thumb of Sempra we could be
[1:45:54]
a model of community
[1:45:55]
resilience.
[1:45:55]
We could have virtual power
[1:45:59]
plants bi directional charging,
[1:46:00]
microgrids, agile and proactive
[1:46:00]
technology to mitigate growing
[1:46:05]
climate risks.
[1:46:06]
We could decide if and where
[1:46:07]
data centers enter our city.
[1:46:11]
Ultimately we have the power
[1:46:12]
now to commit to transitioning
[1:46:13]
to public power.
[1:46:13]
And when we do, every aspect of
[1:46:17]
that transition will be under
[1:46:18]
our local control.
[1:46:18]
And like my students, we have
[1:46:23]
the imagination, the creativity
[1:46:24]
to create something really
[1:46:24]
wonderful that can serve us
[1:46:25]
all.
[1:46:25]
>> Thank you for your comments.
[1:46:29]
That does conclude your time.
[1:46:30]
Next speaker is Kevin Machado
[1:46:31]
or Kevin approaches
[1:46:31]
the microphone.
[1:46:35]
I would ask Will Smith, Kevin
[1:46:43]
Zavala Rachel Kiss Lane Range
[1:46:44]
shot Sharon.
[1:46:49]
Sorry if I said that in part
[1:46:50]
Troutman too.
[1:46:50]
Please come to the front row.
[1:46:51]
Kevin please begin.
[1:46:55]
Hello, my name is Kevin and I'm
[1:46:55]
a worker here in San Diego.
[1:46:56]
Working family The San Diego
[1:47:00]
are tired of the cost of living
[1:47:00]
going up as the union has
[1:47:01]
consistently raised rates in
[1:47:02]
the past decade as the union
[1:47:06]
has raised rates on average 7%
[1:47:06]
per year.
[1:47:07]
They're taking $1 billion from
[1:47:07]
us every year and doing nothing
[1:47:11]
for our communities.
[1:47:12]
That money could go to San
[1:47:13]
Diego schools and the library
[1:47:14]
San Diego workers and San Diego
[1:47:17]
infrastructure as the union
[1:47:18]
wants more more money for their
[1:47:19]
owners And Wall Street at
[1:47:20]
the city's profits this quarter
[1:47:23]
is $290 million and they're
[1:47:24]
likely to break a million in
[1:47:24]
profit this year.
[1:47:25]
And regardless of that, they
[1:47:29]
still are proposing another
[1:47:30]
$280 million more every year.
[1:47:31]
If we don't act now, another
[1:47:36]
decade will pass and San Diego
[1:47:36]
will still be struggling with
[1:47:37]
the cost of living.
[1:47:37]
We have the opportunity to
[1:47:41]
change that now la Power will
[1:47:41]
lower the cost of electricity
[1:47:42]
for generations.
[1:47:43]
The feasibility study will will
[1:47:43]
save money.
[1:47:48]
It will work here.
[1:47:48]
It's worked everywhere else
[1:47:49]
They've tried it.
[1:47:50]
The minimum the minimum
[1:47:50]
position in Sacramento has been
[1:47:54]
complete success.
[1:47:55]
They pay half of what we're
[1:47:55]
paying the council to be brave
[1:47:56]
and act And I thank you for
[1:47:56]
your time.
[1:47:58]
Thank you.
[1:48:04]
Well Smith you do have indoor
[1:48:04]
seating your time.
[1:48:05]
Andrew, could you raise your
[1:48:06]
hand, please?
[1:48:06]
Thank you.
[1:48:07]
You'll have two minutes.
[1:48:10]
Good afternoon, Council.
[1:48:11]
My name is Will and I live in
[1:48:11]
District five.
[1:48:12]
Over the last few years I have
[1:48:15]
moved around San Diego several
[1:48:16]
times.
[1:48:16]
Every neighborhood has been
[1:48:17]
different but in each one of
[1:48:18]
them life keeps getting more
[1:48:21]
expensive.
[1:48:22]
Like many people in my
[1:48:22]
generation I already worry
[1:48:23]
about the cost of rent,
[1:48:27]
groceries, gas and health care.
[1:48:28]
But when bills used to go up no
[1:48:29]
matter what I do.
[1:48:29]
Electricity.
[1:48:33]
Recently I was fortunate enough
[1:48:33]
to move somewhere with solar
[1:48:34]
panels.
[1:48:34]
I thought I would finally get
[1:48:35]
some relief.
[1:48:39]
Instead I watched as Jeannie
[1:48:40]
continued to make decisions
[1:48:40]
that made it harder for
[1:48:41]
ordinary people to lower their
[1:48:44]
bills.
[1:48:45]
It feels like no matter what we
[1:48:45]
do the system is designed so
[1:48:49]
that the shareholders win.
[1:48:50]
And working families pay
[1:48:50]
the price.
[1:48:51]
We don't want to keep having to
[1:48:52]
choose between keeping our
[1:48:55]
lights on and putting food on
[1:48:55]
the table.
[1:48:56]
Beyond affordability, I've also
[1:48:57]
seen the consequences of
[1:49:01]
failure to properly maintain
[1:49:01]
its infrastructure.
[1:49:02]
Wildfires fueled by neglected
[1:49:03]
infrastructure threaten our
[1:49:06]
communities, our environment
[1:49:07]
and the places that make San
[1:49:07]
Diego special.
[1:49:08]
I want future generations to be
[1:49:11]
able to enjoy our parks, open
[1:49:12]
spaces and beaches without
[1:49:12]
being under the constant threat
[1:49:17]
of very preventable disasters.
[1:49:18]
That is why I am here today in
[1:49:19]
support of public power.
[1:49:20]
I want a utility that answers
[1:49:23]
to the people of San Diego not
[1:49:23]
investors.
[1:49:24]
I want money we spend on
[1:49:24]
electricity to stay in our
[1:49:25]
community and be invested in
[1:49:28]
reliability, clean energy and
[1:49:29]
affordability.
[1:49:29]
Most of all, I want future
[1:49:30]
generations of San Diego owners
[1:49:34]
to be able to afford to live in
[1:49:34]
the city they call home.
[1:49:35]
Council These issues affect
[1:49:39]
real people, real families and
[1:49:39]
real voters.
[1:49:40]
Today you have a choice Stand
[1:49:41]
with San Diego and struggling
[1:49:45]
to afford an essential service
[1:49:45]
or stand with a monopoly that
[1:49:46]
continues to raise rates while
[1:49:50]
posting record profits off
[1:49:51]
the backs of working class
[1:49:51]
families.
[1:49:52]
The voters of the city will
[1:49:52]
remember that choice.
[1:49:56]
I urge you to move forward with
[1:49:56]
sd Public Power.
[1:49:57]
>> Thank you.
[1:49:57]
Thank you.
[1:50:01]
Kevin Zavala.
[1:50:02]
>> You have time ceded to you
[1:50:06]
by Robert Freedman Could you
[1:50:07]
raise your hand please?
[1:50:07]
>> Thank you.
[1:50:08]
You'll have two minutes.
[1:50:08]
Good afternoon.
[1:50:11]
My name is Kevin Zavala, Marine
[1:50:12]
Corps veteran and a District
[1:50:12]
four constituent.
[1:50:16]
Over the last decade, genius
[1:50:17]
driven electricity rates up by
[1:50:18]
more than 80% far outpacing
[1:50:21]
inflation and leaving San Diego
[1:50:21]
residents with the same with
[1:50:22]
some of the highest utility
[1:50:23]
bills in the nation.
[1:50:26]
We're told these increases are
[1:50:26]
unavoidable but what are
[1:50:27]
the facts?
[1:50:31]
After the devastating 2007 San
[1:50:32]
Diego wildfires, the us Supreme
[1:50:33]
Court ruled that the genie
[1:50:35]
could not pass $379 million in
[1:50:35]
fire related litigation costs
[1:50:36]
to ratepayers because
[1:50:40]
the damage was caused by
[1:50:40]
the utility's poor maintained
[1:50:41]
equipment.
[1:50:41]
Shareholders, not customers
[1:50:44]
were required to bear those
[1:50:44]
costs.
[1:50:45]
However, Genie later exploited
[1:50:46]
a legal loophole while barred
[1:50:50]
from charging customers for
[1:50:50]
past damages.
[1:50:51]
The company successfully
[1:50:51]
shifted 100% of its ongoing
[1:50:55]
wildfire mitigation and
[1:50:55]
infrastructure hardening costs
[1:50:56]
onto ratepayers.
[1:50:57]
As a result, customers are
[1:51:00]
paying billions to repair and
[1:51:01]
upgrade infrastructure that
[1:51:01]
the utility neglected for
[1:51:02]
years.
[1:51:05]
This is the consequence of a
[1:51:05]
private monopoly accountable to
[1:51:06]
investors rather than
[1:51:07]
the public it serves.
[1:51:10]
In response, public power San
[1:51:11]
Diego is working to establish a
[1:51:12]
publicly owned utility that
[1:51:15]
will prioritize affordability,
[1:51:16]
transparency and local control.
[1:51:17]
Public records show sgi has
[1:51:20]
spent millions on lobbying and
[1:51:20]
political influence efforts to
[1:51:21]
block public power proposals
[1:51:22]
and protect its monopoly.
[1:51:25]
The choice is clear continue
[1:51:26]
accepting more rate hikes or
[1:51:28]
support a public power future
[1:51:29]
that puts the people first.
[1:51:34]
>> Thank you Rachel Kiss.
[1:51:35]
You have time ceded to you by
[1:51:38]
Dale Holmberg.
[1:51:39]
Thank you.
[1:51:39]
Good afternoon.
[1:51:40]
My name is Rachel Kiss.
[1:51:43]
I'm a San Diego resident, a
[1:51:44]
mother of three young children,
[1:51:45]
a homeowner and a small
[1:51:48]
business owner.
[1:51:49]
Like many families, we've made
[1:51:49]
sacrifices over the last few
[1:51:50]
years as the cost of living
[1:51:53]
continues to rise.
[1:51:54]
We budget carefully.
[1:51:54]
We compare prices.
[1:51:57]
We make difficult decisions
[1:51:58]
about where our money goes.
[1:51:59]
What's frustrating is that
[1:51:59]
while families are expected to
[1:52:03]
tighten their belts as Jeannie
[1:52:04]
continues to come back asking
[1:52:07]
for more, how much is enough?
[1:52:08]
Electricity is not a luxury.
[1:52:09]
It's a necessity.
[1:52:12]
Families need to keep food cold
[1:52:13]
home safe and children
[1:52:13]
comfortable.
[1:52:16]
Small businesses need to
[1:52:17]
survive.
[1:52:17]
Yet we're paying some of
[1:52:18]
the highest energy rates in
[1:52:21]
the country with especially
[1:52:22]
concerning is that more and
[1:52:22]
more of these costs are being
[1:52:23]
shifted into fixed charges.
[1:52:27]
Whether someone lives in a
[1:52:27]
small apartment and edu or a
[1:52:31]
large home whether they can
[1:52:31]
serve energy or not, they're
[1:52:32]
being asked to pay more.
[1:52:33]
Families are being told to use
[1:52:36]
less energy while
[1:52:36]
simultaneously being charged
[1:52:37]
speeds that they cannot
[1:52:37]
control.
[1:52:40]
That undermines both
[1:52:41]
affordability and conservation.
[1:52:41]
Today isn't just about a
[1:52:46]
feasibility study.
[1:52:46]
It's about accountability.
[1:52:47]
It's about exploring whether
[1:52:48]
there's a better path forward
[1:52:51]
that puts residents before
[1:52:51]
profits.
[1:52:52]
I'm not here because I have all
[1:52:52]
the answers.
[1:52:55]
I'm here because I believe
[1:52:56]
the people of San Diego deserve
[1:52:56]
leaders who are willing to ask
[1:52:57]
hard questions and seriously
[1:53:01]
explore alternatives.
[1:53:02]
When sd Jenny asks for another
[1:53:05]
increase it's a line item on a
[1:53:05]
spreadsheet.
[1:53:06]
For families it's groceries,
[1:53:10]
kids activities, savings and a
[1:53:10]
peace of mind.
[1:53:11]
Those costs are real and we're
[1:53:12]
feeling them.
[1:53:15]
Please seriously evaluate every
[1:53:16]
option available to bring
[1:53:17]
affordability, transparency and
[1:53:20]
accountability back to our
[1:53:20]
energy system.
[1:53:21]
And please remember that behind
[1:53:22]
every rate increase is a family
[1:53:25]
trying to make their budget
[1:53:25]
work.
[1:53:26]
Thank you for your time.
[1:53:26]
Thank you.
[1:53:30]
Lane Sharman.
[1:53:31]
When you have time ceded to you
[1:53:35]
by Katherine Harrison and
[1:53:36]
Katherine, raise your hand.
[1:53:36]
Thank you.
[1:53:43]
You'll have two minutes.
[1:53:44]
Good afternoon, counsel.
[1:53:44]
My name is Lane Sharman.
[1:53:47]
I'm a fifth generation
[1:53:48]
Californian and I'm also
[1:53:52]
the proud founder and initiator
[1:53:53]
of community choice aggregation
[1:53:53]
in San Diego along with Bill
[1:53:57]
Powers.
[1:53:58]
We have public power in San
[1:53:58]
Diego, don't we?
[1:54:02]
We've had it since the Smart
[1:54:03]
Energy Alliance was founded by
[1:54:07]
Lisa hepner, your colleague.
[1:54:07]
She did that because it was
[1:54:11]
good for the city of Solana
[1:54:12]
Beach.
[1:54:16]
That tiny little city up north
[1:54:17]
>> And why was it good for it?
[1:54:18]
Because San Diego gas and
[1:54:21]
electric then as now was taking
[1:54:22]
advantage of every single
[1:54:26]
ratepayer then and now.
[1:54:31]
And I am asking you to please
[1:54:31]
look at the big picture here.
[1:54:36]
Your legacy, your future, your
[1:54:37]
ability to lead and do what's
[1:54:41]
good for this city is before
[1:54:41]
you.
[1:54:45]
And even though there is so
[1:54:46]
much opposition, much of it is
[1:54:50]
just fear.
[1:54:51]
It is.
[1:54:55]
And we all fear is the only
[1:54:56]
thing that we have to fear
[1:54:56]
right now.
[1:54:57]
This is going to be great for
[1:55:00]
unions.
[1:55:00]
It's going to be great for
[1:55:01]
the people of San Diego.
[1:55:05]
It's going to be good for our
[1:55:05]
future.
[1:55:09]
So I just beg you to do what
[1:55:10]
Lisa Huebner did in 2016.
[1:55:15]
She wrote why it was good and
[1:55:15]
she published it.
[1:55:19]
Each one of you could do that
[1:55:23]
and it would be an amazing way
[1:55:24]
of clearly stating why this is
[1:55:25]
good for San Diego because you
[1:55:29]
will work through all of
[1:55:29]
the issues including the fears
[1:55:34]
and I just want to thank each
[1:55:34]
and every one of you who takes
[1:55:38]
that action and and dedicates
[1:55:39]
themselves to the future of San
[1:55:39]
Diego.
[1:55:43]
Thank you.
[1:55:43]
>> Thank you.
[1:55:47]
Next speaker is Pak Troutman.
[1:55:48]
While you approach
[1:55:49]
the microphone I would ask that
[1:55:53]
James Ferguson Diego Sandoval,
[1:55:54]
Tyler Andre, Isaiah Glass and
[1:55:58]
Allison Miller please approach
[1:55:59]
the front row park.
[1:56:02]
You have five people sitting
[1:56:02]
time to you.
[1:56:07]
Angela Haynes Thank you.
[1:56:07]
Doris Wynn.
[1:56:11]
Thank you.
[1:56:12]
Michael Brack Me.
[1:56:12]
Thank you.
[1:56:17]
Janet o'Dea Thank you.
[1:56:17]
Five minutes please.
[1:56:20]
Please begin.
[1:56:21]
Thank you.
[1:56:22]
Good afternoon, Council members
[1:56:26]
and Council PRESIDENT My name
[1:56:26]
is Park Troutman.
[1:56:27]
I am with San Diego 350 Well, I
[1:56:30]
want to talk about is San Diego
[1:56:31]
Gas Electric general rate case
[1:56:35]
that was filed last week.
[1:56:36]
The general rate case is a huge
[1:56:37]
filing in which investor owned
[1:56:40]
utility tries to convince
[1:56:41]
the California Public Utilities
[1:56:45]
Commission that they should be
[1:56:46]
allowed to raise their rates
[1:56:49]
over a four year block for 2028
[1:56:53]
the first year of the 40 years
[1:56:53]
of the rate increase request.
[1:56:58]
As the genie asked permission
[1:56:58]
to raise the residential
[1:57:02]
electricity rates by about $14
[1:57:03]
per month which is a little bit
[1:57:06]
more than 7% and
[1:57:07]
the residential gas rates by a
[1:57:11]
little bit less than 850 per
[1:57:11]
month which is about a 13%
[1:57:12]
increase.
[1:57:16]
The California Public Advocacy
[1:57:21]
Office tracks acg genies rates
[1:57:21]
versus inflation.
[1:57:22]
They've done this since 2014.
[1:57:26]
The cumulative impact of their
[1:57:27]
increase in their rates more
[1:57:27]
than inflation is that they
[1:57:31]
have increased about triple
[1:57:31]
inflation.
[1:57:36]
This request for the general
[1:57:37]
rate increase or the general
[1:57:37]
rate case which is really
[1:57:41]
the window into how they're
[1:57:41]
thinking about the future is
[1:57:45]
actually a little bit more than
[1:57:46]
their average request for
[1:57:49]
the since 2014 and they make a
[1:57:53]
similar request in 2029 and in
[1:57:57]
2030 and 2031 they only request
[1:57:57]
an increase of 5.5%.
[1:58:02]
And keep in mind that these
[1:58:03]
rate increases that are in
[1:58:07]
the general rate case are
[1:58:08]
merely the baseline of what
[1:58:11]
they're asking for.
[1:58:12]
Increasingly investor owned
[1:58:16]
utilities are asking for rate
[1:58:16]
increases outside of
[1:58:21]
the general rate case so we can
[1:58:22]
expect that they will keep
[1:58:26]
continue to ask for more And
[1:58:26]
these are through their
[1:58:27]
balancing in memorandum
[1:58:28]
accounts where they spend money
[1:58:30]
and then say oh we already
[1:58:31]
spent this money, could you get
[1:58:35]
reimbursed by paying or
[1:58:36]
charging rate payers more?
[1:58:40]
So this let the audacity and
[1:58:40]
compulsiveness of this sink in
[1:58:44]
public anger at investor owned
[1:58:45]
utilities has begun to affect
[1:58:49]
the outcomes of elections
[1:58:50]
nationwide and sd Genie which
[1:58:54]
in a J.D. Power study excuse me
[1:58:59]
a brand appeal of utilities in
[1:58:59]
the Western us that they did
[1:59:02]
last year sc Genie was 28 out
[1:59:03]
of 30th near the absolute
[1:59:07]
bottom because of their high
[1:59:08]
rates They are so out of touch
[1:59:12]
they are going to continue They
[1:59:13]
are continuing to ask for more.
[1:59:17]
The general rate case request
[1:59:21]
is higher than the 4% that was
[1:59:22]
the basis for the consultant's
[1:59:26]
study and that was the main
[1:59:27]
assumption for the phase two
[1:59:30]
feasibility study There are
[1:59:31]
consultants are constrained by
[1:59:32]
the need to be reasonable as
[1:59:35]
the genie apparently does not
[1:59:36]
feel the same.
[1:59:40]
This means that when we look at
[1:59:40]
the impacts of the cumulative
[1:59:43]
benefits I believe that Slide
[1:59:44]
11 we should be concentrating
[1:59:48]
on the highest bar showing
[1:59:53]
the highest possible savings
[1:59:54]
because that is the most
[1:59:54]
likely.
[1:59:58]
We know this because Star Genie
[1:59:59]
is telling us so they are going
[2:00:03]
to continue to ask So what does
[2:00:03]
this mean going forward?
[2:00:08]
I was we are not going to if we
[2:00:09]
know they're going to continue
[2:00:10]
to ask for more rate increases.
[2:00:14]
We're not going to be having
[2:00:14]
the same conversation.
[2:00:15]
We're not always coming back
[2:00:17]
having the exact encounter.
[2:00:18]
It's going to be worse.
[2:00:19]
People will be more frustrated,
[2:00:22]
Rates are going to be higher.
[2:00:23]
We cannot sit our hands We
[2:00:23]
cannot say wait to see what
[2:00:27]
happens in San Francisco And
[2:00:27]
these are not options.
[2:00:31]
We need to keep moving forward.
[2:00:32]
Star Genie The company will not
[2:00:34]
stop itself.
[2:00:39]
>> Thank you.
[2:00:40]
Thank you.
[2:00:40]
Our next speaker is James
[2:00:41]
Ferguson.
[2:00:45]
James, you have Deborah
[2:00:46]
Winthrop or any time to you
[2:00:46]
Deborah, can you raise your
[2:00:49]
hand?
[2:00:49]
>> Thank you.
[2:00:50]
Two minutes.
[2:00:54]
Thank you.
[2:00:55]
My name is James and I live in
[2:00:58]
North Park and I have been an
[2:00:59]
advocate for climate issues and
[2:01:03]
our energy systems for my
[2:01:03]
entire adult life which is
[2:01:04]
actually pretty long.
[2:01:07]
I went to college in 1975 and
[2:01:08]
that's where I took
[2:01:08]
environmental science.
[2:01:12]
I'm a retired naval officer and
[2:01:13]
anesthesia provider and this
[2:01:17]
has been a passion of mine for
[2:01:17]
that long.
[2:01:18]
I'm now Senate liaison for
[2:01:22]
Citizens Climate Lobby and I
[2:01:22]
must tell you that we're
[2:01:23]
working on transmission issues
[2:01:27]
this year with the federal
[2:01:27]
government And I tell you that
[2:01:28]
dependency model of early
[2:01:32]
monopoly electronic electrical
[2:01:33]
systems no longer serves as
[2:01:36]
well as electrical demand will
[2:01:37]
double or triple in the next 20
[2:01:38]
years because of data centers
[2:01:41]
electrification, reshoring of
[2:01:46]
business etc. Favoring big
[2:01:47]
distant production and long
[2:01:51]
wires with cpu c guaranteeing
[2:01:51]
double digit profits over
[2:01:55]
whatever costs are incurred And
[2:01:56]
it doesn't even have to try to
[2:02:00]
economize.
[2:02:01]
So they are incentivized to
[2:02:06]
spend as much as possible
[2:02:06]
because that's a percent above
[2:02:10]
the cost that they incur while
[2:02:14]
lack of profit incentives for
[2:02:15]
upgrades and maintenance of
[2:02:15]
the not very lucrative
[2:02:16]
capacities of the local
[2:02:19]
distribution grid is a failure
[2:02:20]
to accommodate local generation
[2:02:24]
and storage which we could do.
[2:02:25]
We have a lot of available
[2:02:29]
storage opportunities and in
[2:02:29]
solar opportunities.
[2:02:30]
But an sd Genie technician came
[2:02:34]
to my house to explain to me
[2:02:35]
why my 200 hour panel is crying
[2:02:38]
and it's because he just said
[2:02:39]
Well there's a lot of solar
[2:02:39]
systems around here These old
[2:02:42]
circuits just can't handle it.
[2:02:43]
So we pay the highest rates in
[2:02:48]
America in the continental
[2:02:48]
states two times California
[2:02:49]
average with three times
[2:02:51]
the national average.
[2:02:52]
Thank you.
[2:02:56]
Thank you.
[2:02:57]
Next speaker is D.A. Diego
[2:03:03]
Sandoval.
[2:03:04]
Do you have time to buy Ben
[2:03:04]
Owens?
[2:03:05]
Ben, could you raise your hand?
[2:03:05]
Thank you.
[2:03:07]
And Pamela Isaacs, thank you.
[2:03:07]
You have three minutes.
[2:03:08]
Please begin.
[2:03:11]
Thank you.
[2:03:12]
Good afternoon, City Council.
[2:03:12]
My name is Diego Sandoval.
[2:03:15]
I live in District eight and
[2:03:16]
I'm here today to ask you to
[2:03:16]
choose public power over
[2:03:20]
the greed and power hungry
[2:03:21]
genie as De Genie wants you to
[2:03:21]
think that there is serious
[2:03:25]
about what's doing best for our
[2:03:25]
environment and people when in
[2:03:26]
reality they're just doing
[2:03:30]
what's best for their pockets
[2:03:31]
so much so that they change
[2:03:35]
the g in their logo to Green.
[2:03:35]
Now it's green.
[2:03:36]
How nice is that?
[2:03:37]
And truth as the genie supports
[2:03:39]
fighting climate change insofar
[2:03:40]
as they can profit from it and
[2:03:40]
households across San Diego are
[2:03:44]
feeling that every month for a
[2:03:45]
company committed to net zero
[2:03:46]
they're still incredibly
[2:03:49]
enthusiastic about fossil
[2:03:50]
fuels.
[2:03:50]
Ac Genie is owned by Sempra
[2:03:51]
which has invested heavily in
[2:03:54]
the transportation of what they
[2:03:55]
euphemistically call natural
[2:03:55]
gas.
[2:03:59]
Natural gas is the most highly
[2:03:59]
potent greenhouse gas methane.
[2:04:00]
To quote the CHAIRMAN And ceo
[2:04:04]
of Sempra from last month, they
[2:04:04]
are very bullish on
[2:04:08]
the liquefied natural gas trade
[2:04:09]
long term This is not what you
[2:04:12]
say when you're serious about
[2:04:13]
net zero or what's doing best
[2:04:14]
for the people or the climate
[2:04:17]
that they depend on for a
[2:04:18]
livable future.
[2:04:18]
This corporations mentality of
[2:04:22]
grasping what every book they
[2:04:23]
can be seen is can be seen in
[2:04:27]
their filing for their general
[2:04:27]
rate case.
[2:04:28]
They claim that they need to
[2:04:31]
raise their rates for wildfire
[2:04:32]
mitigation in the case of
[2:04:32]
ongoing climate changes.
[2:04:36]
Yet on the very same page they
[2:04:37]
also say they want to raise
[2:04:37]
rates to support
[2:04:38]
the construction of new gas
[2:04:41]
facilities.
[2:04:42]
Does that make sense?
[2:04:43]
They want us to pay more so
[2:04:43]
that they can continue
[2:04:47]
contributing to climate change
[2:04:47]
then use climate change as
[2:04:51]
justification for us paying
[2:04:51]
more as the genie does not care
[2:04:52]
about people or the environment
[2:04:56]
they only care about profit not
[2:04:56]
progress.
[2:04:57]
San Diego can do better.
[2:05:01]
This is why I asked for you to
[2:05:02]
choose public power today but
[2:05:03]
also to work with our union
[2:05:05]
brothers and sisters to ensure
[2:05:06]
that they are considered during
[2:05:07]
this transition.
[2:05:07]
To echo the opinions of a
[2:05:10]
previous speaker we can do this
[2:05:11]
together.
[2:05:11]
>> Thank you.
[2:05:11]
Yeah.
[2:05:15]
Thank you.
[2:05:16]
Next speaker is Tyler Andre.
[2:05:21]
Tyler, you have several
[2:05:21]
individuals setting your time.
[2:05:22]
Cory Quite Lander.
[2:05:26]
Thank you, Jackie Smith.
[2:05:31]
Thank you, Fred And here.
[2:05:35]
Thank you.
[2:05:35]
Rhea Coleman.
[2:05:35]
Thank you.
[2:05:36]
You will have five minutes.
[2:05:39]
Please begin.
[2:05:40]
>> Good afternoon, Counsel.
[2:05:41]
My name is Dre.
[2:05:41]
I am a resident of District
[2:05:44]
one, a Navy veteran and a small
[2:05:45]
business owner as well as a
[2:05:48]
proud volunteer with San Diego
[2:05:49]
350 and Public Power San Diego.
[2:05:53]
>> Now why are so many people
[2:05:53]
motivated to be here on a
[2:05:54]
Monday afternoon?
[2:05:58]
>> And why does Jeannie solicit
[2:05:58]
curses from every San Diego who
[2:05:59]
hears that name?
[2:06:02]
It's because every single one
[2:06:03]
of us has had that moment.
[2:06:04]
The one where you open
[2:06:04]
the billing up or the bill
[2:06:08]
lands on the counter and you
[2:06:08]
just stare at it.
[2:06:09]
Maybe you reread the number
[2:06:13]
like it'll change.
[2:06:13]
It won't.
[2:06:14]
In case you're wondering in
[2:06:15]
fact don't look at it too many
[2:06:15]
times because I'm going to
[2:06:17]
charge you extra for that.
[2:06:18]
>> And what's maddening is that
[2:06:21]
we live in one of the sunniest
[2:06:22]
city in the country.
[2:06:22]
Solar is now the cheapest
[2:06:26]
electricity on earth and we are
[2:06:26]
still paying some of
[2:06:27]
the highest electric rates in
[2:06:30]
the continental United States.
[2:06:31]
This is a broken arrangement
[2:06:32]
created by an investor owned
[2:06:32]
corporation.
[2:06:35]
In fact here are the numbers.
[2:06:36]
>> Straight from the cpu See?
[2:06:39]
Since 2014 sd genius
[2:06:42]
residential rates have gone up
[2:06:43]
about 117% Inflation over that
[2:06:47]
same period 39%.
[2:06:48]
Sd Genius rates have grown
[2:06:52]
three times faster than
[2:06:52]
the cost of everything three
[2:06:53]
times.
[2:06:57]
Right now nearly one in five sd
[2:06:58]
Genie households are behind on
[2:06:58]
their bill.
[2:07:02]
>> Owning an average owing an
[2:07:06]
average of over $500.
[2:07:06]
Those are our neighbors.
[2:07:07]
That's multiple people in this
[2:07:11]
room right now.
[2:07:11]
>> And this doesn't stop at our
[2:07:12]
electric bill.
[2:07:15]
Local businesses pay these same
[2:07:16]
rates and that cost gets built
[2:07:17]
into the price of your coffee,
[2:07:20]
your haircut, your kid's
[2:07:20]
daycare.
[2:07:21]
High electric rates are a
[2:07:21]
hidden cost on every
[2:07:25]
transaction in the city.
[2:07:26]
>> Our water rates mtf also
[2:07:27]
facing a deficit has to pay
[2:07:30]
them too.
[2:07:31]
So that's why we're here
[2:07:31]
because we're tired of
[2:07:34]
subsidizing a system that costs
[2:07:35]
us three times more than it
[2:07:36]
should in the one city in
[2:07:39]
America with the least excuse
[2:07:39]
for it.
[2:07:40]
But here's what I'd like you to
[2:07:44]
think about.
[2:07:44]
>> This is the business model
[2:07:45]
working exactly as designed.
[2:07:49]
Sd Jeannie is a government
[2:07:49]
granted monopoly.
[2:07:50]
You can't shop around for your
[2:07:53]
power and under California's
[2:07:54]
regulatory system it doesn't
[2:07:54]
make money by giving you
[2:07:58]
cheaper or better power.
[2:07:59]
It makes money by spending more
[2:07:59]
on infrastructure because
[2:08:03]
the state guarantees its
[2:08:04]
shareholders a return of nearly
[2:08:07]
10% on every dollar that it
[2:08:08]
spends.
[2:08:09]
Not on outcomes but on
[2:08:09]
spending.
[2:08:15]
Sd Jeannie boasts up to $1
[2:08:15]
billion in annual profits and
[2:08:15]
that money comes from
[2:08:15]
somewhere.
[2:08:17]
It came from us.
[2:08:18]
Yet they'll shut your power
[2:08:18]
off.
[2:08:22]
It is also why sd Jeannie
[2:08:23]
doesn't celebrate when your
[2:08:24]
neighbor puts solar panels on
[2:08:26]
the roof.
[2:08:27]
Solar that we the ratepayers
[2:08:31]
pay for Personally under this
[2:08:31]
business model your rooftop
[2:08:32]
solar is a loss of revenue to
[2:08:36]
them not a win for the grid.
[2:08:37]
>> And sd Genies parent company
[2:08:38]
Sempra is one of the largest
[2:08:41]
builders of fossil fuel export
[2:08:41]
infrastructure in the country.
[2:08:42]
>> So while we MAY be doing our
[2:08:46]
best to go green, the company
[2:08:46]
taking our power bill is in
[2:08:50]
other corners of its empire
[2:08:51]
building out more fossil fuel
[2:08:51]
infrastructure.
[2:08:55]
And they protect this
[2:08:55]
arrangement the same way every
[2:08:56]
entrenched monopoly does with
[2:08:59]
money in politics.
[2:09:00]
Sempra spendnds over $1 million a
[2:09:01]
year lobbying Sacramento and
[2:09:05]
the very commission that sets
[2:09:05]
its profit margin.
[2:09:06]
>> Take a look at where Sempra
[2:09:09]
Nest is.
[2:09:10]
You need to donate their money.
[2:09:10]
Our money.
[2:09:11]
This isn't just about a high
[2:09:14]
bill.
[2:09:15]
It's about a monopoly that
[2:09:16]
profits by spending more
[2:09:19]
vitally clean energy on our
[2:09:20]
roofs and spends our money
[2:09:21]
lobbying the people meant to
[2:09:24]
hold them accountable.
[2:09:25]
This is unacceptable.
[2:09:29]
This is nonpartisan and this is
[2:09:29]
wrong.
[2:09:30]
>> I want to end with a
[2:09:30]
question to the room and I
[2:09:31]
think you will actually might
[2:09:35]
know the answer.
[2:09:35]
How do you spell corporate
[2:09:36]
greed?
[2:09:41]
Sd Jeannie, thank you Counsel.
[2:09:46]
>> Thank you for your comments
[2:09:47]
Our next speaker is Isaiah
[2:09:47]
Glass of Isaiah.
[2:09:51]
You have several people sending
[2:09:52]
you time so I just need to
[2:09:52]
confirm they're here.
[2:09:56]
Robin Gill Burt thank you.
[2:10:00]
Mary Fifield Thank you.
[2:10:01]
Andrew Lund Steve Thank you.
[2:10:05]
So today Lopez Eugenio thank
[2:10:06]
you And Mike meaning All right,
[2:10:06]
Thank you.
[2:10:10]
You will have six minutes.
[2:10:10]
>> Please begin.
[2:10:11]
Good afternoon, Council
[2:10:11]
members.
[2:10:15]
My name is Isaiah Glasser and
[2:10:16]
I'm the program director for
[2:10:16]
Public Power San Diego.
[2:10:17]
I want to take a moment to
[2:10:20]
thank all the volunteers who
[2:10:20]
came out to support the Phase
[2:10:21]
two public power study and
[2:10:22]
public power in general.
[2:10:24]
I really do appreciate it from
[2:10:25]
the bottom of my heart.
[2:10:29]
This new gen study shows even
[2:10:29]
in the most conservative
[2:10:30]
modeling that public power is
[2:10:34]
good for San Diego and it's
[2:10:34]
good for San Diego is the key
[2:10:35]
number that determines this
[2:10:36]
amount of savings is
[2:10:38]
the revenue growth rate.
[2:10:39]
New Gen assumed 4% and admits
[2:10:42]
that 6% is more realistic and
[2:10:43]
it's a total slap in the face
[2:10:47]
that just a couple of days ago
[2:10:47]
you filed for an 8% increase in
[2:10:48]
2028.
[2:10:51]
The second you take this model
[2:10:52]
it's the same You take this
[2:10:53]
model and use a revenue growth
[2:10:53]
rate that's anywhere near
[2:10:56]
reality.
[2:10:56]
The savings are absolutely mind
[2:10:57]
blowing and it seems to me that
[2:11:01]
we're actually pretty close to
[2:11:01]
consensus on that which makes
[2:11:02]
common sense because when you
[2:11:05]
cut Wall Street profit out of
[2:11:06]
our electricity bills you will
[2:11:07]
see savings.
[2:11:11]
Many of us here today knew this
[2:11:11]
back in 2020 during
[2:11:12]
the franchise agreement fight
[2:11:14]
and again in 2024 during
[2:11:14]
the power San Diego campaign.
[2:11:17]
Public power was the right
[2:11:17]
choice in 2020.
[2:11:18]
It was the right choice in
[2:11:18]
2024.
[2:11:22]
It's the right choice in 2026
[2:11:23]
and it will be the right choice
[2:11:23]
in 2023.
[2:11:27]
The question is not if public
[2:11:27]
power saves money.
[2:11:28]
The question is when will we
[2:11:32]
have a council that is brave
[2:11:33]
enough to take on the corporate
[2:11:37]
oligarchs that any all of us
[2:11:37]
here today are being ripped off
[2:11:42]
by our stage name including
[2:11:42]
the city of San Diego.
[2:11:43]
The city pays an sd Jeanie Bill
[2:11:46]
the water department pays
[2:11:47]
the nasty G.I. Bill.
[2:11:47]
The sewer department pays a
[2:11:50]
nasty G.I. Bill Electric rates
[2:11:51]
are a cost inflator on
[2:11:52]
the entire city budget.
[2:11:55]
Public power would help
[2:11:56]
the city's structural deficit,
[2:11:56]
t harm it.
[2:12:00]
We really truly are the council
[2:12:01]
and the people of San Diego on
[2:12:04]
the same side against sd Jenny
[2:12:05]
And moving forward we
[2:12:09]
absolutely must protect ibew
[2:12:10]
guarantee their fought hard,
[2:12:11]
hard fought labor contracts and
[2:12:14]
hard earned pension funds.
[2:12:15]
And that is absolutely doable
[2:12:15]
with public power.
[2:12:17]
Now I've got a message for
[2:12:22]
the bosses at e!
[2:12:23]
>> The public power movement is
[2:12:23]
only growing.
[2:12:27]
Your days are numbered.
[2:12:32]
Of pillaging our community.
[2:12:37]
Your for profit monopoly will
[2:12:37]
end.
[2:12:38]
>> Thank you.
[2:12:38]
>> Thank you.
[2:12:40]
Alison Miller Well Alison comes
[2:12:40]
to the microphone I will ask
[2:12:41]
Blaire Beekman, Jessica
[2:12:47]
Anderson Nicole Lilly Yeah and
[2:12:47]
Dori Bruggeman to please come
[2:12:50]
to the front room.
[2:12:50]
>> Alison, please begin.
[2:12:51]
Hello Council I am a resident
[2:12:54]
of District three and I am here
[2:12:55]
today because a quarter of your
[2:12:59]
voters and my neighbors are in
[2:13:00]
debt to corporate greed as any
[2:13:04]
at any given time.
[2:13:05]
>> They're on track to make $1
[2:13:05]
billion in profits this year
[2:13:08]
yet they continue to ask for
[2:13:09]
more during the same time
[2:13:10]
period they've been
[2:13:10]
participating in union busting.
[2:13:13]
They've been turning to private
[2:13:14]
contractors that hurt our union
[2:13:18]
neighbors.
[2:13:19]
We the supporters of the public
[2:13:20]
power movement are committed to
[2:13:20]
working with our union
[2:13:22]
neighbors as we implement
[2:13:23]
public power And I ask you to
[2:13:24]
commit to the same.
[2:13:24]
Opponents today have argued
[2:13:27]
that there isn't enough
[2:13:28]
information to take the next
[2:13:28]
step.
[2:13:32]
But you have before you data
[2:13:32]
that is founded on good
[2:13:33]
information.
[2:13:37]
It's time today is the time to
[2:13:38]
take the next step.
[2:13:38]
There will never be enough
[2:13:42]
information for some people.
[2:13:43]
Today San Diego pays and see
[2:13:43]
Jeannie profits.
[2:13:46]
But San Diegans deserve to own
[2:13:47]
the goods and services that we
[2:13:47]
pay for.
[2:13:48]
So today I'm asking you to
[2:13:52]
reject corporate greed and act
[2:13:52]
in support of San Diegans by
[2:13:53]
supporting public good.
[2:13:54]
>> That doesn't include your
[2:13:54]
time.
[2:14:04]
Blair Beekman.
[2:14:09]
Hi.
[2:14:09]
I'm already here.
[2:14:09]
Shoot.
[2:14:09]
It's my time.
[2:14:09]
Thank you.
[2:14:10]
I'm not very knowledgeable
[2:14:13]
about these things, but I come
[2:14:13]
from the Bay Area.
[2:14:14]
They have a great tradition of
[2:14:18]
community energy and working
[2:14:19]
with unions I feel I have to
[2:14:19]
refresh myself on such
[2:14:20]
subjects.
[2:14:23]
I hope you guys are learning
[2:14:24]
that too that the municipal
[2:14:27]
things weren't offered here.
[2:14:28]
For union things I hope there
[2:14:32]
can be dialog between everyone
[2:14:34]
It sounds like people want to
[2:14:34]
have the dialog and we
[2:14:35]
definitely want to believe in
[2:14:38]
the future of what community
[2:14:38]
energy can offer.
[2:14:42]
Where you minister a municipal
[2:14:43]
system MAY not work.
[2:14:44]
We do have little small
[2:14:44]
programs you know like
[2:14:48]
the funding of neighborhood
[2:14:48]
infrastructure that can be
[2:14:52]
called a municipal program
[2:14:53]
possibly and work in those kind
[2:14:54]
of avenues.
[2:14:58]
But working towards the overall
[2:14:59]
goal of community energy I hope
[2:14:59]
we're all on board on that
[2:15:00]
subject matter and want to be
[2:15:04]
building such good things for
[2:15:04]
all of us in our future.
[2:15:05]
>> Thank you.
[2:15:11]
Thank you, Jessica Anderson.
[2:15:17]
>> Hello, Council.
[2:15:17]
Month after month over the past
[2:15:18]
year my utility bill has
[2:15:18]
continued to climb, reaching
[2:15:19]
nearly over $300 every single
[2:15:20]
month in my first apartment out
[2:15:20]
of college.
[2:15:21]
This is unaffordable.
[2:15:24]
It is ridiculous that City
[2:15:25]
Jionni profits nearly $1
[2:15:31]
billion a year yet 1 in 5 San
[2:15:32]
Diegans cannot afford their
[2:15:32]
utility bills.
[2:15:33]
It is ridiculous that in that
[2:15:33]
stage you need claim that this
[2:15:36]
is not feasible when they are
[2:15:37]
asking for an 8.6% increase at
[2:15:37]
the cpu.
[2:15:41]
See it is absolutely ridiculous
[2:15:42]
when San Diegans are forced to
[2:15:42]
choose between food on their
[2:15:46]
table paying their rent and
[2:15:46]
paying their utility bills it
[2:15:47]
is clear the system is broken.
[2:15:50]
Public power is a real
[2:15:51]
opportunity to address this
[2:15:51]
crisis.
[2:15:52]
Public power presents us with
[2:15:55]
the opportunity for clean
[2:15:56]
affordable energy.
[2:15:56]
Public power presents us with
[2:15:57]
the opportunity for clean air
[2:16:01]
public health, the opportunity
[2:16:01]
to protect strong unions and to
[2:16:05]
protect people In San Diego who
[2:16:06]
cannot afford to live here any
[2:16:06]
longer.
[2:16:07]
Public power is a real viable
[2:16:11]
opportunity to build a more
[2:16:11]
affordable and thriving San
[2:16:12]
Diego.
[2:16:12]
>> Thank you.
[2:16:13]
That does conclude your time.
[2:16:18]
Nicole Lilly.
[2:16:23]
Nicole Lilly.
[2:16:30]
Okay.
[2:16:30]
Uh oh.
[2:16:31]
Here she comes.
[2:16:37]
All right.
[2:16:41]
>> Sorry.
[2:16:42]
Hello.
[2:16:43]
My name is Nicole Lilly.
[2:16:44]
I'm a 23 year old run turned
[2:16:45]
Golden Heel and the executive
[2:16:46]
director of our Time to Act a
[2:16:47]
youth led 523 nonprofit
[2:16:48]
organizing powerful youth for
[2:16:48]
an inclusive, equitable and
[2:16:52]
sustainable future.
[2:16:53]
As youth organizers we have
[2:16:53]
become all too familiar
[2:16:57]
tackling complicated and
[2:16:58]
nuanced issues and creating new
[2:16:59]
and innovative solutions
[2:17:02]
because it is what is necessary
[2:17:03]
I support the implementation of
[2:17:04]
public power without denying
[2:17:07]
the necessity of labor
[2:17:07]
considerations.
[2:17:08]
We need not be divided.
[2:17:12]
Dismantling monopolies like
[2:17:13]
Jeannie is an effort that we
[2:17:13]
must join together to pursue.
[2:17:14]
Utilities like housing and
[2:17:17]
health care are basic needs and
[2:17:18]
allowing it to be maintained as
[2:17:21]
a tool for profit because it is
[2:17:22]
complicated is unacceptable.
[2:17:23]
Every day San Diegans young
[2:17:27]
organizers like myself demand a
[2:17:28]
commitment from this council to
[2:17:28]
do what is complicated because
[2:17:31]
it is necessary.
[2:17:32]
My roommate and I figure out
[2:17:32]
how to make do with less and
[2:17:33]
less every month to survive in
[2:17:34]
San Diego.
[2:17:37]
I urge the city to do more to
[2:17:38]
make San Diego work for all
[2:17:39]
the people in this room not
[2:17:39]
the corporations that we
[2:17:41]
destroy.
[2:17:41]
>> Thank you.
[2:17:46]
Lori Saldana.
[2:17:47]
>> Good afternoon And I want to
[2:17:51]
just acknowledge and thank all
[2:17:52]
the people who have spoken
[2:17:52]
today because the perspectives
[2:17:56]
are important and I think
[2:17:56]
they've all raised some really
[2:17:57]
excellent points on both sides
[2:18:01]
for and against us.
[2:18:02]
There are a few certainties in
[2:18:02]
life We know a couple of them
[2:18:07]
death taxes and I'll add a
[2:18:08]
third sdg in asking to raise
[2:18:11]
their rates.
[2:18:11]
300,000 people at least cannot
[2:18:12]
afford to pay their higher
[2:18:16]
rates here in San Diego.
[2:18:17]
We pay the highest rates in
[2:18:17]
the country.
[2:18:21]
So with certainty when I heard
[2:18:22]
the report on my way in today
[2:18:22]
and listen to the report saying
[2:18:26]
an estimated 3% rate increase
[2:18:27]
would even out over time i
[2:18:27]
think you're way
[2:18:31]
underestimating what us intends
[2:18:32]
to do.
[2:18:33]
So in the interest of time I
[2:18:33]
will just point out one more
[2:18:34]
thing.
[2:18:38]
Working against us is one
[2:18:39]
culprit.
[2:18:39]
You have received $5,000 as of
[2:18:43]
MARCH 31st from ibew for your
[2:18:44]
run for Congress.
[2:18:44]
I would ask that you please
[2:18:45]
recuse yourself from voting on
[2:18:48]
this.
[2:18:49]
>> I think you have a conflict
[2:18:50]
of interest and thank you for
[2:18:54]
your time.
[2:18:54]
>> Okay, take it easy.
[2:18:55]
This is an information item.
[2:18:59]
There is no voting.
[2:19:00]
Dori Brueggemann You do have
[2:19:06]
time ceded to you by Barbara I
[2:19:09]
have a rose Okay you have two
[2:19:10]
minutes.
[2:19:10]
Please begin.
[2:19:10]
>> Good afternoon Council I'm
[2:19:10]
Dory.
[2:19:11]
I'm an executive board member
[2:19:15]
of Public Power San Diego and
[2:19:15]
some of the points I had
[2:19:16]
written down here today have
[2:19:19]
already been said so I'll skip
[2:19:20]
those.
[2:19:20]
But I wanted to read a couple
[2:19:21]
of quotes from the feasibility
[2:19:25]
study phase two The first quote
[2:19:25]
that I have here is
[2:19:30]
the financial risks while real
[2:19:31]
are manageable through careful
[2:19:32]
planning and execution.
[2:19:35]
The municipal electric utility
[2:19:36]
remains viable even under
[2:19:36]
adverse scenarios.
[2:19:41]
The bottom line is that this
[2:19:42]
report shows that this is
[2:19:42]
feasible.
[2:19:43]
This quote also tells us that
[2:19:47]
when we build a public utility
[2:19:48]
we are building a domain where
[2:19:48]
success lies in our hands.
[2:19:53]
And I want to say there's been
[2:19:54]
a lot of fear mongering here
[2:19:54]
today.
[2:19:55]
I also just want to shout out
[2:19:55]
thank you.
[2:19:58]
Britney says for
[2:19:59]
the fearmongering directly from
[2:20:00]
sd Janey She did not identify
[2:20:00]
herself but she does work for
[2:20:03]
any.
[2:20:04]
I want to talk about the risk
[2:20:09]
of not making the choice to
[2:20:12]
switch to public power instead
[2:20:13]
making the choice to stay
[2:20:14]
the course where we are hoping
[2:20:15]
that legislative reform or cpc
[2:20:16]
reform will somehow fix this
[2:20:20]
problem.
[2:20:21]
The cbc is not going to save
[2:20:21]
us.
[2:20:26]
That's not our turf.
[2:20:27]
That's Sdrinis turf.
[2:20:32]
One of our allies over here had
[2:20:32]
a great example of the way that
[2:20:33]
they exploit loopholes.
[2:20:37]
Any any roadblock we put in
[2:20:38]
their way they will exploit.
[2:20:39]
We are not winning as much as
[2:20:42]
we need to be to fix
[2:20:43]
the problem at the state level.
[2:20:47]
But the point is that public
[2:20:48]
power is not uniquely risky And
[2:20:49]
also we're lucky that we have
[2:20:50]
this option that we are a city
[2:20:54]
and we can actually do
[2:20:54]
something significant to make a
[2:20:55]
change and get out under
[2:20:59]
the thumb of Jeannie.
[2:21:00]
So I want to echo what my ally
[2:21:01]
Patricia and Diego said.
[2:21:06]
We can do this.
[2:21:09]
>> We can work together.
[2:21:09]
This is a growing movement.
[2:21:09]
And don't let the fear
[2:21:11]
mongering get to you.
[2:21:12]
That does conclude your time.
[2:21:29]
Omar Walter Nadji.
[2:21:34]
One minute.
[2:21:35]
One minute.
[2:21:35]
Yes.
[2:21:35]
So you said you uniquely
[2:21:35]
positioned to chart a different
[2:21:36]
course with national
[2:21:36]
consequences.
[2:21:40]
Climate is one of the greatest
[2:21:40]
natural resources anywhere in
[2:21:41]
the world.
[2:21:41]
We have an abundant sunshine
[2:21:45]
growing clean energy sector,
[2:21:46]
world class research
[2:21:47]
institutions and the population
[2:21:51]
has consistently embraced
[2:21:52]
innovations.
[2:21:53]
We're not simply capable of
[2:21:53]
generating enough clean energy
[2:21:57]
to power our homes and
[2:21:58]
businesses.
[2:21:59]
We have potential to become a
[2:21:59]
net producer of energy creating
[2:22:05]
economic value that remains in
[2:22:09]
our region rather than leaving
[2:22:09]
it.
[2:22:09]
Decisions being made right now
[2:22:10]
will determine who benefits
[2:22:11]
from this growth.
[2:22:16]
This opportunity will the value
[2:22:21]
created by this transformation
[2:22:21]
of our system remain here in
[2:22:22]
San Diego reinvested in
[2:22:22]
affordability, reliability,
[2:22:23]
infrastructure and local
[2:22:23]
priorities?
[2:22:28]
Or will it continue to flow
[2:22:29]
primarily towards a system
[2:22:29]
designed around shareholder
[2:22:30]
returns?
[2:22:34]
We have every incentive to
[2:22:34]
preserve this model.
[2:22:41]
If we were part of this study
[2:22:45]
well we that's an investor
[2:22:45]
owned utility understand that.
[2:22:46]
But as you guys represent us
[2:22:47]
the citizens your
[2:22:53]
responsibility is about what
[2:22:56]
serves San Diego is best.
[2:22:59]
Sorry I'm not professional
[2:22:59]
speech.
[2:23:00]
Is my first speech in years.
[2:23:04]
But anyway I think this is a
[2:23:05]
test.
[2:23:06]
The biggest question is ask
[2:23:06]
whether the generation of
[2:23:11]
wealth created by the energy
[2:23:11]
economy should be captured
[2:23:12]
locally and used to benefit
[2:23:17]
communities that created it.
[2:23:18]
Or are we to continue to give
[2:23:18]
it to us to Junior?
[2:23:24]
This isn't their decision.
[2:23:24]
>> Thank you.
[2:23:25]
That does conclude
[2:23:25]
the development session but
[2:23:34]
please keep.
[2:23:41]
>> I just walk to the parking
[2:23:41]
structure with former
[2:23:42]
Councilmember Mark Kersey.
[2:23:46]
>> He was kind enough to listen
[2:23:47]
to my questions about why
[2:23:47]
the city can't do the simplest
[2:23:53]
things to oversee the many
[2:23:53]
businesses that operate
[2:23:54]
throughout this city.
[2:23:59]
Do you know what he said to me?
[2:23:59]
He said there was too much
[2:24:03]
going on in this city for
[2:24:04]
the council members to deal
[2:24:05]
with all the details in
[2:24:09]
the city.
[2:24:10]
Too much going on for you to
[2:24:11]
deal with.
[2:24:16]
Now I'm not an expert on energy
[2:24:17]
but I have become an expert on
[2:24:17]
business interests hijacking
[2:24:22]
the city government for their
[2:24:23]
own purposes.
[2:24:23]
If you have any doubt, look
[2:24:30]
into how the city That's you.
[2:24:30]
Joe Lacob and Todd Lauria have
[2:24:31]
mismanaged the Torrey Pines
[2:24:32]
Gloria port.
[2:24:35]
Thank you.
[2:24:35]
Thank you.
[2:24:36]
Our final in-person speaker
[2:24:46]
will be Anthony Ralphs.
[2:24:47]
>> Good afternoon City Council.
[2:24:47]
I want to remind everybody in
[2:24:52]
this room that we all share one
[2:24:52]
thing in common We're all
[2:24:53]
getting ripped off by Jionni
[2:24:57]
and it continues every day year
[2:24:57]
after year.
[2:25:01]
$1 billion in profits last year
[2:25:02]
Almost a billion the year
[2:25:02]
before.
[2:25:03]
I'm sick to my stomach.
[2:25:03]
I'm tired of not being able to
[2:25:08]
pay my energy bills.
[2:25:09]
I'm tired of the people in my
[2:25:09]
city not being able to pay
[2:25:10]
their energy bills.
[2:25:12]
I'm tired of one quarter to a
[2:25:13]
fifth of the people in this
[2:25:14]
city not being able to afford
[2:25:19]
meeting their energy bills at
[2:25:19]
the end of the month.
[2:25:20]
I'm tired of seeing a corporate
[2:25:20]
monopoly and its greed
[2:25:25]
prioritized over the people
[2:25:25]
that live in the city.
[2:25:26]
I am a union member.
[2:25:27]
I'm a member of iww,
[2:25:30]
the Industrial Workers of
[2:25:30]
the World so I understand
[2:25:31]
the priority that labor places
[2:25:32]
in our lives.
[2:25:37]
But I also understand that only
[2:25:38]
half of the people in this room
[2:25:38]
are getting paid handsomely to
[2:25:39]
be here And it's not those of
[2:25:42]
us who hate sd Jeanie for free.
[2:25:47]
>> Thank you.
[2:25:48]
>> Thank you.
[2:25:49]
We also received two speaker
[2:25:53]
slips from individuals wishing
[2:25:54]
to register their position in
[2:25:55]
favor but not speak from
[2:25:55]
Brandon Reynolds and Korina
[2:26:02]
Vega.
[2:26:02]
That concludes in-person public
[2:26:03]
comment.
[2:26:03]
I've started the five minute
[2:26:04]
timer and council chambers.
[2:26:08]
We will now turn to the virtual
[2:26:09]
queue in which there are
[2:26:09]
currently ten speakers
[2:26:13]
requesting to speak.
[2:26:26]
We will begin with Eric Revolt
[2:26:27]
Zachary.
[2:26:28]
Imagine every single family
[2:26:32]
house and duplex in San Diego
[2:26:33]
covered with twice the solar
[2:26:33]
panels there are now and
[2:26:38]
they're going to get paid three
[2:26:39]
times more for the energy.
[2:26:44]
Imagine Fashion Valley covered
[2:26:44]
in solar panels.
[2:26:45]
Mission Valley covered in solar
[2:26:45]
panels.
[2:26:50]
The parking drives all their
[2:26:50]
green power.
[2:26:51]
And imagine every trolley
[2:26:56]
station covered in providing
[2:26:57]
shade and solar energy to feed
[2:27:02]
the dc motors on the trolley
[2:27:03]
instead of using ac dropping
[2:27:08]
down to dc for them directly
[2:27:09]
with solar panels on
[2:27:09]
the trolley system Even
[2:27:13]
the tracks elevator from
[2:27:14]
the tracks.
[2:27:14]
We're now doing ac power and
[2:27:20]
turning that ac power into dc
[2:27:20]
causing energy when we can
[2:27:21]
generate it from solar panels
[2:27:27]
right there on the trolley
[2:27:27]
stations.
[2:27:28]
>> No all involved is solar.
[2:27:32]
Thank you.
[2:27:32]
That does conclude your time.
[2:27:33]
We will go next to Eric Proval,
[2:27:37]
Paul Jones Eric.
[2:27:37]
>> Perfect.
[2:27:38]
Thank you so much counsel.
[2:27:44]
My name is Eric Proval and I am
[2:27:44]
the ceo of the San Diego North
[2:27:45]
Economic Development Council
[2:27:49]
representing an area North of
[2:27:50]
that sa 56 with more than 1
[2:27:51]
million residents and 500,000
[2:27:51]
jobs.
[2:27:56]
I urge caution and ask that
[2:27:56]
the city pause this effort
[2:27:57]
until the regional implications
[2:27:58]
are better understood.
[2:28:01]
The reported self acknowledges
[2:28:02]
that the electric system was
[2:28:02]
not built around city
[2:28:03]
boundaries.
[2:28:07]
Numerous substations and other
[2:28:08]
assets serve customers both
[2:28:08]
inside and outside the city.
[2:28:12]
Yet the report appears to
[2:28:13]
assume that separating and
[2:28:14]
operating these assets can
[2:28:14]
occur smoothly and
[2:28:15]
cooperatively.
[2:28:19]
That is a significant
[2:28:19]
assumption with major
[2:28:20]
implications for reliability
[2:28:21]
costs in neighboring
[2:28:21]
communities.
[2:28:25]
But most importantly the report
[2:28:25]
does not adequately explain how
[2:28:26]
a municipal utility would
[2:28:30]
participate in regional
[2:28:31]
wildfire prevention, weather
[2:28:32]
monitoring and emergency
[2:28:32]
operations before moving
[2:28:37]
forward.
[2:28:37]
North County communities
[2:28:38]
deserve a clear understanding
[2:28:39]
of how municipal this action
[2:28:42]
would affect them.
[2:28:43]
Thank you for your comments.
[2:28:52]
Kathleen Levitt Thank you.
[2:28:52]
Good afternoon and thank you to
[2:28:53]
everybody who spoke.
[2:28:53]
Governor Newsom allowed
[2:28:58]
California companies to tax
[2:29:02]
taxpayer dollars from the state
[2:29:03]
$21 billion while fund wildfire
[2:29:04]
fund to pay for their damages,
[2:29:09]
fines and liabilities for fires
[2:29:10]
that were directly tied to it.
[2:29:10]
For every dollar the utility
[2:29:15]
spent building infrastructure
[2:29:15]
they were allowed to charge
[2:29:19]
customers an additional 10% in
[2:29:20]
profits for their shareholders.
[2:29:21]
They routinely their priority
[2:29:25]
is profit for their executives
[2:29:25]
and shareholders and they
[2:29:26]
routinely disregard public
[2:29:31]
priorities They disregard while
[2:29:32]
diverse habitats that support
[2:29:32]
migratory birds, reptiles,
[2:29:38]
pollinators and they're ignored
[2:29:39]
On behalf of permitting if
[2:29:43]
figure you need to put their
[2:29:44]
power lines they now want to
[2:29:44]
put their power lines directly
[2:29:49]
through the anza-borrego Park
[2:29:50]
that is a designated park in
[2:29:55]
perpetuity to protect Thank
[2:29:55]
you.
[2:29:56]
That does conclude your time.
[2:30:01]
Francis Yasmeen Matlala Hello.
[2:30:06]
So first it's I think it's
[2:30:07]
important for everyone to
[2:30:12]
realize that like the entire
[2:30:13]
state of Nebraska has municipal
[2:30:13]
run power is is not impossible
[2:30:18]
task any government can do it
[2:30:18]
if they just create the public
[2:30:19]
the political will to do it.
[2:30:23]
I think that every one of
[2:30:24]
the council members should
[2:30:24]
attend The American Public
[2:30:29]
Power Association's annual
[2:30:30]
conference and you can learn
[2:30:31]
about and meet cities of people
[2:30:35]
from cities all over
[2:30:35]
the country that enjoy
[2:30:36]
the benefits of public power
[2:30:37]
that we are only dreaming of.
[2:30:41]
I want to state that the sdg
[2:30:46]
business model it's not about
[2:30:47]
security or affordability.
[2:30:47]
It's about profit And even
[2:30:48]
the way they're designing
[2:30:53]
the future with long
[2:30:54]
transmission lines out to
[2:30:54]
the desert is the wrong way to
[2:30:55]
go.
[2:30:55]
It's not sensible unless you
[2:30:59]
try and exploit people for
[2:31:00]
money as he takes $1 million a
[2:31:04]
day out of the city and 3
[2:31:04]
million a day out of
[2:31:05]
the county, it's got to stop
[2:31:05]
now.
[2:31:18]
>> Thank you, John Stump by
[2:31:23]
John Stone And DECEMBER 15th
[2:31:24]
2025 I sent the council a nine
[2:31:30]
point program to get out of
[2:31:31]
this mess with me.
[2:31:35]
And the key thing in this nine
[2:31:35]
point program which I'm sending
[2:31:36]
you again today is that
[2:31:41]
the city should create its own
[2:31:42]
municipal utility for its own
[2:31:42]
use.
[2:31:43]
The city currently now
[2:31:48]
generates its own power and
[2:31:49]
spends a lot of money paying
[2:31:53]
Genny.
[2:31:53]
The city could easily set up
[2:31:54]
its own department and that
[2:31:59]
would be the initial step
[2:31:59]
the transitional step toward
[2:32:00]
public power.
[2:32:05]
City Council Start exploring
[2:32:06]
where you spend money and where
[2:32:11]
you generate electricity now
[2:32:12]
and set up a separate
[2:32:13]
department To watch that please
[2:32:18]
follow the direction of my
[2:32:19]
mother at DECEMBER 15th 2025.
[2:32:24]
>> Thank you very much.
[2:32:24]
Thank you.
[2:32:25]
And I please know that the five
[2:32:29]
minute timer has concluded with
[2:32:30]
eight speakers left in
[2:32:30]
the queue and the other
[2:32:33]
speakers will be taken after
[2:32:34]
this time The voices please
[2:32:41]
begin.
[2:32:42]
>> Hi my name is We try and set
[2:32:43]
the director for businesses.
[2:32:47]
I'm calling to support you know
[2:32:47]
public power.
[2:32:48]
I know that I also think it's
[2:32:54]
ironic that we need a study to
[2:32:55]
figure out where we should put
[2:32:59]
the power.
[2:33:00]
We all talk about the rising
[2:33:05]
costs of standing so much now I
[2:33:06]
you know, if you can find a
[2:33:07]
little will to make it happen,
[2:33:12]
it will really help a lot of us
[2:33:13]
reduce the cost of living here
[2:33:13]
and stay here And then I go it
[2:33:18]
is the no getting there now we
[2:33:19]
don't really need a study to do
[2:33:20]
it But now you have a study Can
[2:33:21]
you please move forward with
[2:33:22]
it?
[2:33:22]
That would be great.
[2:33:27]
Thank you.
[2:33:28]
Color with the last word Digits
[2:33:28]
88213.
[2:33:40]
Please begin.
[2:33:41]
Okay so the goal here is
[2:33:41]
unbelievable to get people to
[2:33:46]
have confidence that this board
[2:33:46]
will do the right thing when
[2:33:47]
the record of ignoring
[2:33:52]
the people's wishes and needs
[2:33:52]
are like it's been proven in
[2:33:53]
putting people honestly to
[2:33:59]
the people who are awake to any
[2:33:59]
and all we have We have so much
[2:34:00]
of our money and keep asking
[2:34:03]
for more But you realize that
[2:34:04]
this board you're addressing
[2:34:09]
does the same exact thing
[2:34:10]
honestly from sandag to
[2:34:10]
the county to this board.
[2:34:16]
I mean all these corrupt
[2:34:17]
government agencies they'll
[2:34:17]
take for it They will take from
[2:34:22]
us and you know, whatever
[2:34:22]
benefits them.
[2:34:23]
But I just wish, you know, more
[2:34:28]
people were awake to that And
[2:34:29]
it's it's amazing You can't
[2:34:29]
address us without also
[2:34:34]
addressing the corruption of
[2:34:34]
the very board.
[2:34:39]
Well, I got to say that.
[2:34:40]
Thank you, Evan Burke, please
[2:34:45]
begin.
[2:34:46]
>> Hello.
[2:34:47]
I want to speak in favor of
[2:34:50]
public power first.
[2:34:50]
There is no benefit to a
[2:34:51]
private monopoly like Genie.
[2:34:56]
There's no need to even pretend
[2:34:57]
to little cost with no
[2:34:57]
competition.
[2:34:58]
Meanwhile, their insanely high
[2:34:58]
power costs make our cost of
[2:35:02]
living more expensive and
[2:35:02]
contribute to issues like
[2:35:03]
homelessness.
[2:35:04]
I found the fear mongering that
[2:35:08]
I've heard outrageous.
[2:35:09]
We hear that we don't have
[2:35:09]
enough data but what more data
[2:35:10]
do we need when dozens of other
[2:35:13]
cities have already done this
[2:35:14]
and succeeded, we were warned
[2:35:15]
that San Diego will have to pay
[2:35:16]
new costs like insurance
[2:35:20]
premiums.
[2:35:21]
But San Diegans are already
[2:35:22]
paying those costs and more
[2:35:25]
Whenever Janey turns a profit
[2:35:26]
the definition of madness is
[2:35:27]
doing the same thing over and
[2:35:27]
over again and expecting a
[2:35:28]
different result.
[2:35:32]
We've seen what I see Genie can
[2:35:33]
do and will do and now's
[2:35:34]
the time to try something
[2:35:38]
different or just a new form of
[2:35:39]
pop pop power.
[2:35:39]
>> Thank you.
[2:35:40]
Thank you.
[2:35:47]
Natalie Rashid, please begin.
[2:35:47]
Hi.
[2:35:54]
Natalie Rushdie Here I am
[2:35:54]
District seven.
[2:35:55]
I want to bring couple
[2:35:59]
attention to one number that
[2:36:00]
explains a lot of what's
[2:36:01]
happening with our electric
[2:36:01]
bills.
[2:36:05]
You see just authorized a
[2:36:10]
return on equity of nearly 10%
[2:36:10]
for 2026 to 2028.
[2:36:11]
That's the profit percentage
[2:36:12]
Sempra's shareholders earn not
[2:36:16]
on selling us electricity but
[2:36:16]
on infrastructure spending
[2:36:17]
itself.
[2:36:17]
The more he spends on poles
[2:36:22]
wires and upgrades the more
[2:36:22]
profit profit it earns because
[2:36:23]
that return is applied to
[2:36:28]
the entire faith based
[2:36:28]
independent economics at
[2:36:29]
the American Economic Liberties
[2:36:34]
Project testified that their
[2:36:35]
fair return based on current
[2:36:35]
market conditions would be
[2:36:36]
closer to 6% and the gap
[2:36:39]
between that and what was
[2:36:40]
actually authorized comes out
[2:36:44]
to 4.4 billion in overcharges
[2:36:45]
in 2026 alone across
[2:36:45]
California's immediate
[2:36:46]
utilities.
[2:36:50]
This is exactly why the cities
[2:36:51]
on Public Power study found
[2:36:56]
that most Thank you that does
[2:36:56]
conclude your tired electric
[2:36:57]
grid.
[2:36:59]
Next speaker is Jordan Lewis.
[2:37:05]
Please begin.
[2:37:06]
>> Hi, my name is Katherine
[2:37:07]
Mock.
[2:37:11]
I'm a resident of San San Diego
[2:37:12]
County in North County and I'm
[2:37:13]
an sd g and customer and I
[2:37:17]
support acquiring sd Janney
[2:37:17]
Infrastructure and could bring
[2:37:18]
it to a publicly owned power
[2:37:19]
utility particularly for
[2:37:22]
concerns like affordability and
[2:37:23]
transitioning to zero emission
[2:37:23]
utilities.
[2:37:28]
Well it's expensive to acquire
[2:37:29]
a managed utility and that cost
[2:37:29]
will be footed by us rate
[2:37:30]
payers.
[2:37:30]
We're already footing the bill
[2:37:34]
for sd duty and on top of that,
[2:37:35]
as others have pointed out,
[2:37:36]
we're paying the additional
[2:37:39]
cost of a for profit entity
[2:37:40]
including the hundreds of
[2:37:41]
millions of profits each year
[2:37:45]
that sd only makes as well as
[2:37:45]
the 22.2 million total
[2:37:46]
compensation for Jeffrey
[2:37:46]
Martin, Sempra ceo That was
[2:37:50]
last year's number.
[2:37:51]
So for these reasons I fully
[2:37:51]
support advancing a publicly
[2:37:55]
owned utility for San Diego.
[2:37:56]
Please continue this effort.
[2:37:57]
Do what you can to reduce
[2:37:57]
the uncertainty.
[2:37:58]
Incorporate the concerns of
[2:38:01]
some of the folks who spoken
[2:38:01]
opposition today and complete
[2:38:02]
the transition to public power.
[2:38:02]
>> Thank you.
[2:38:06]
Thank you.
[2:38:07]
Next speaker is a caller with
[2:38:10]
last four digits 8700.
[2:38:15]
Please begin.
[2:38:21]
Thank you.
[2:38:22]
Yes, I support public power
[2:38:26]
also known as Power of
[2:38:27]
the People.
[2:38:27]
Here are my reasons.
[2:38:31]
Number one, all of you using
[2:38:36]
the power of your voice today.
[2:38:37]
Number two, trusting that all
[2:38:42]
of us will do a full analysis
[2:38:42]
of this of its ability.
[2:38:43]
Number three keeping an eye on
[2:38:48]
San Francisco as a public power
[2:38:48]
model.
[2:38:52]
This is a golden opportunity
[2:38:53]
for creative action outside
[2:38:59]
the box of sd g and e!
[2:39:00]
It's been a great item.
[2:39:01]
Thank you everybody and love to
[2:39:06]
all.
[2:39:07]
Thank you.
[2:39:07]
Our next speaker is a caller
[2:39:08]
with the last four digits to
[2:39:09]
265.
[2:39:20]
Please begin.
[2:39:20]
I am Diego.
[2:39:25]
I live in Kensington.
[2:39:26]
Over the last five years San
[2:39:26]
Diego Gas Electric has
[2:39:30]
appropriated an average more
[2:39:30]
than $800 million per year.
[2:39:34]
At the same time, nearly 1 in 5
[2:39:35]
Centurions cannot afford to pay
[2:39:39]
their utility bills.
[2:39:40]
And greed knows no end.
[2:39:41]
And just last week they
[2:39:45]
requested the rate increase of
[2:39:49]
8.6% at the puc.
[2:39:50]
This would mean an increase of
[2:39:54]
over $22,000,022 a month on top
[2:39:54]
of the already high utility
[2:39:58]
rates we are paying above
[2:39:59]
the public power Feasibility
[2:39:59]
study shows public power is
[2:40:04]
possible feasible and cheaper
[2:40:04]
for San Diego and the time for
[2:40:05]
public power is now.
[2:40:09]
My utility bill is like we live
[2:40:13]
in a 2000 square foot apartment
[2:40:14]
in utility bills like $250.
[2:40:17]
It's just ridiculous.
[2:40:18]
>> We need to do public art
[2:40:18]
now.
[2:40:22]
You.
[2:40:23]
>> Thank you.
[2:40:23]
Our final speakers and all of
[2:40:24]
Alaska.
[2:40:26]
Please begin.
[2:40:26]
Hi.
[2:40:31]
So I'm a resident of District
[2:40:32]
two.
[2:40:32]
Natural monopolies like
[2:40:37]
utilities should not be owned
[2:40:37]
by for profit entities because
[2:40:38]
without competition and
[2:40:41]
swimmers will always be
[2:40:41]
squeezed for profit.
[2:40:42]
It was a mistake to have ever
[2:40:43]
allowed power to be privately
[2:40:43]
owned.
[2:40:46]
If the power had been publicly
[2:40:47]
owned, the electrical expertise
[2:40:51]
and the good union jobs would
[2:40:51]
have always been available
[2:40:52]
through a public entity.
[2:40:53]
It will never be a good time to
[2:40:56]
unwind this mistake but it
[2:40:56]
needs to be done.
[2:40:57]
We understand the fear of
[2:41:00]
uncertainty facing union
[2:41:01]
members but there is no better
[2:41:01]
union employer than public
[2:41:02]
agencies.
[2:41:05]
As you have pointed out, your
[2:41:06]
expertise and skill will still
[2:41:06]
be needed.
[2:41:07]
And yes, there will be a
[2:41:10]
reshuffling of jobs but
[2:41:11]
the jobs would not go away.
[2:41:12]
We hear the argument we don't
[2:41:12]
have enough information But
[2:41:15]
isn't this what the council is
[2:41:16]
considering a feasibility study
[2:41:20]
to gather more information.
[2:41:21]
We want the council to have all
[2:41:21]
the information possible to
[2:41:24]
make a decision on this issue.
[2:41:25]
>> We cannot be afraid of this
[2:41:26]
knowledge.
[2:41:26]
Thank you.
[2:41:29]
Thank you.
[2:41:30]
That does conclude public
[2:41:33]
comment on item 200.
[2:41:34]
>> Thank you.
[2:41:34]
All right.
[2:41:35]
Thank you, Deputy Clerk.
[2:41:38]
Let's take a moment and thank
[2:41:38]
Kevin.
[2:41:39]
This is his first big meeting
[2:41:40]
sitting there in the chair.
[2:41:43]
So well done, sir.
[2:41:44]
And to your entire team because
[2:41:48]
the way that you organized all
[2:41:49]
the flips truly, truly
[2:41:49]
impressive.
[2:41:50]
I'll just give a personal
[2:41:53]
thanks to everybody that showed
[2:41:54]
up and the special shout out to
[2:41:55]
those who showed up just to
[2:41:57]
give time to somebody else to
[2:41:58]
speak.
[2:41:58]
Greatly appreciate that.
[2:41:59]
So with that we will turn it
[2:42:02]
over to the council members for
[2:42:02]
questions and comments.
[2:42:03]
And we'll start with the chair
[2:42:07]
of the Environment Committee.
[2:42:07]
>> Council member Ella Rivera.
[2:42:08]
All right.
[2:42:08]
Thank you.
[2:42:09]
Council PRESIDENT.
[2:42:12]
Thanks for the report.
[2:42:12]
Obviously we had this
[2:42:16]
conversation at Environment
[2:42:17]
Committee.
[2:42:18]
This is a continuation of that
[2:42:23]
And I think the additional
[2:42:24]
public participation is useful
[2:42:28]
because it highlighted to me
[2:42:28]
what I think is probably
[2:42:29]
the most important component of
[2:42:33]
this And with very few
[2:42:34]
exceptions almost every comment
[2:42:38]
we heard today came from one of
[2:42:39]
two groups either the blue
[2:42:39]
collar workers who who keep
[2:42:43]
the grid running or residents
[2:42:43]
who are breaking under
[2:42:44]
the weight of their bills.
[2:42:48]
It's working People fighting to
[2:42:49]
make rent, fighting to keep
[2:42:52]
the lights on and fighting each
[2:42:52]
other over scraps because
[2:42:53]
that's exactly what a rigged
[2:42:57]
economy does.
[2:42:57]
It doesn't just take people's
[2:42:58]
money.
[2:42:58]
It turns neighbors against each
[2:43:02]
other, workers against
[2:43:03]
ratepayers in a fight over who
[2:43:07]
absorbs the pain while
[2:43:08]
the people who actually rig
[2:43:11]
the game keep their feet up and
[2:43:12]
enjoy the show from the other
[2:43:12]
side of the table.
[2:43:13]
So who's doing that?
[2:43:16]
As Jeanie in Sempra the set of
[2:43:17]
millionaire executives who will
[2:43:21]
go home tonight to a financial
[2:43:22]
reality that no one who
[2:43:25]
testified here today can even
[2:43:30]
imagine let alone enjoy.
[2:43:31]
So our San Diego boys are
[2:43:32]
fighting each other over
[2:43:32]
scraps.
[2:43:35]
Executives sit fat and happy
[2:43:36]
enjoying the fruits of their
[2:43:36]
victories.
[2:43:37]
We should put some numbers to
[2:43:39]
that because I think that's
[2:43:39]
important.
[2:43:40]
Sempra ceo Jeff Martin took
[2:43:44]
home a compensation package
[2:43:49]
worth $22.2 million in 2025
[2:43:50]
That made him the fourth
[2:43:50]
highest paid energy executive
[2:43:54]
in the country.
[2:43:54]
An average California worker
[2:43:58]
would have to work for 236
[2:43:58]
years to earn what Martin made
[2:44:02]
in a single year 236 years.
[2:44:07]
That's not poor people.
[2:44:08]
That's the average California
[2:44:08]
worker.
[2:44:12]
And that's the gap between
[2:44:13]
the people who keep the grid
[2:44:17]
running and the man at the top
[2:44:17]
of the company who owns it.
[2:44:21]
And I think there's something
[2:44:22]
really important about why it's
[2:44:27]
so important to continue this
[2:44:27]
conversation.
[2:44:28]
I understand the anxiety that
[2:44:32]
it creates for the workers who
[2:44:32]
who are impacted by
[2:44:33]
the conversation.
[2:44:36]
But I want to explain why it's
[2:44:37]
been important to keep this
[2:44:38]
conversation going.
[2:44:38]
Because despite this
[2:44:41]
conversation going despite a
[2:44:41]
visibility report that says
[2:44:46]
that this is feasible despite a
[2:44:46]
growing movement of San Diegans
[2:44:51]
who are organizing to fire
[2:44:52]
Jeanie as Jeanie still filed
[2:44:55]
for another rate increase 8.6%
[2:44:59]
on the average monthly bill
[2:45:00]
That's an extra 20 to 50 a
[2:45:00]
month.
[2:45:01]
While all of that scrutiny is
[2:45:05]
happening, not pausing to read
[2:45:05]
the room, they're not
[2:45:06]
questioning whether or not they
[2:45:09]
should slow down.
[2:45:10]
They're just they just keep at
[2:45:10]
it.
[2:45:14]
Increase after increase after
[2:45:14]
increase.
[2:45:15]
And the message that that sends
[2:45:19]
to us is that they don't think
[2:45:19]
we have the nerve to have an
[2:45:20]
honest conversation about
[2:45:20]
alternatives.
[2:45:24]
So I think we have a
[2:45:24]
responsibility to know what our
[2:45:25]
options are and ensure
[2:45:26]
the public knows the pros and
[2:45:31]
cons of those options.
[2:45:32]
According to the most recent
[2:45:33]
electric rates report by
[2:45:33]
the California Public
[2:45:37]
Advocate's Office over the past
[2:45:37]
ten years as residential rates
[2:45:45]
have risen 98% and every single
[2:45:48]
cent that ibew Local 465
[2:45:49]
members have earned in that
[2:45:50]
same period they've had to
[2:45:52]
fight for every contract
[2:45:53]
grievance after grievance.
[2:45:59]
Nothing handed to you earlier
[2:46:00]
this year or at the end of last
[2:46:02]
year as de went after a small
[2:46:03]
group of workers right to even
[2:46:03]
hold a union election.
[2:46:06]
Hiring the most notorious union
[2:46:11]
busting law firm in America and
[2:46:12]
tried to take advantage of a
[2:46:16]
paralyzed federal labor board
[2:46:17]
to run out the clock on that
[2:46:17]
vote.
[2:46:18]
And if it wasn't for the work
[2:46:20]
of the union they would have
[2:46:26]
been successful.
[2:46:26]
>> So when ratepayers see a 90%
[2:46:27]
or 98% rate increase and ask
[2:46:30]
for that money went I know it
[2:46:34]
didn't go to the workers.
[2:46:35]
It went to a company that will
[2:46:36]
spend resources fighting just a
[2:46:40]
handful of its own employees
[2:46:40]
rights to organize or asking
[2:46:47]
the rest of us for another 8.6%
[2:46:48]
So I want to make sure we're
[2:46:49]
really clear about what we're
[2:46:50]
up against and who we're
[2:46:52]
standing with.
[2:46:53]
MS. Mendoza I appreciated what
[2:46:54]
you said.
[2:46:57]
We can work together.
[2:46:58]
Nobody wants to fire
[2:46:58]
the workers who built the grid
[2:47:01]
and keep it running.
[2:47:02]
The conversation is about what
[2:47:06]
our options are instead of
[2:47:07]
the status quo Because
[2:47:08]
the status quo does not work.
[2:47:11]
The status quo allows a ceo to
[2:47:12]
earn 236 years worth an average
[2:47:16]
worker salary in a single year
[2:47:16]
,fights its union over a
[2:47:18]
handful of jobs and squeezes
[2:47:19]
rate payers for a 98% rate
[2:47:23]
increase.
[2:47:24]
All while there's a
[2:47:24]
conversation happening about
[2:47:28]
what our options are.
[2:47:33]
So that context is incredibly
[2:47:33]
important.
[2:47:34]
I appreciate the conversation
[2:47:37]
here today and I again just
[2:47:38]
want to reiterate why I think
[2:47:39]
it's so important for us to
[2:47:42]
keep having it.
[2:47:43]
>> There were a lot of
[2:47:43]
important points made in
[2:47:47]
today's conversation about
[2:47:47]
the way that everyone feels
[2:47:51]
these impacts about the way
[2:47:52]
the city feels, the rising
[2:47:56]
costs, the way it has a a
[2:47:57]
domino effect in terms of cost
[2:48:00]
of living.
[2:48:05]
And we have this responsibility
[2:48:09]
I did have one one question
[2:48:10]
that I brought up last time and
[2:48:11]
I'm curious if there's any
[2:48:11]
updates.
[2:48:14]
Last time I asked about Long
[2:48:15]
Island and the hybrid model
[2:48:19]
that they pursued.
[2:48:19]
Have you done any additional
[2:48:24]
research on that?
[2:48:24]
Any additional analysis?
[2:48:29]
We did look into it generally.
[2:48:29]
Councilmember I think
[2:48:30]
the important thing to remember
[2:48:33]
about Long Island so you are
[2:48:34]
right that the Long Island
[2:48:38]
Power Authority lpa then has a
[2:48:39]
relationship with Shute I don't
[2:48:43]
remember actual utility
[2:48:43]
operator.
[2:48:44]
The issue is is that because
[2:48:47]
Long Island and New England and
[2:48:48]
most of the East Coast frankly
[2:48:49]
is in a deregulated
[2:48:49]
environment.
[2:48:53]
So it automatically splits kind
[2:48:54]
of commodity And then you've
[2:48:54]
got a lot of competing
[2:48:57]
distributors.
[2:48:58]
>> They are overseen still by
[2:48:59]
the state Department of Energy
[2:49:02]
and Electricity Resources.
[2:49:03]
And so you still have a state
[2:49:07]
level regulatory body that
[2:49:08]
oversees that specific contract
[2:49:12]
And there are conversations
[2:49:13]
going on on updates on that
[2:49:13]
contract that are coming up in
[2:49:14]
the next several years.
[2:49:17]
If there is continued interest
[2:49:18]
in deep diving in here we can
[2:49:22]
but there's no equivalent model
[2:49:23]
in a in what was a bundled or a
[2:49:23]
semi unregulated environment
[2:49:27]
like Calif in some of the other
[2:49:28]
larger states have got it.
[2:49:32]
>> Appreciate that.
[2:49:33]
General idea though is
[2:49:37]
the workers don't have to be
[2:49:37]
displaced from their current
[2:49:38]
place of work.
[2:49:38]
They continue to do the work
[2:49:42]
that they do for who they do
[2:49:42]
it.
[2:49:43]
What changes is that company is
[2:49:47]
now working for the city or
[2:49:48]
the municipality instead If I
[2:49:52]
understand the model correctly.
[2:49:52]
Yes.
[2:49:56]
Generally what I did not what
[2:49:57]
we did not necessarily have
[2:49:58]
time or resources to do was to
[2:49:59]
dig into the actual contracts
[2:50:02]
and compare what Long Island
[2:50:02]
Power Authority has negotiated
[2:50:07]
with the in this case.
[2:50:08]
And in that instance you're
[2:50:08]
talking about us contracting
[2:50:11]
out to sd Jenny so that that
[2:50:12]
and how different that is from
[2:50:16]
say either the workers contract
[2:50:16]
under that with that system
[2:50:20]
versus another and how
[2:50:21]
different say the revenue or
[2:50:25]
model is versus other areas
[2:50:26]
where that utility operates
[2:50:27]
separately?
[2:50:30]
Okay.
[2:50:31]
Again, just in terms of us
[2:50:36]
understanding options, the pros
[2:50:36]
and cons of those options
[2:50:37]
hearing what are the main
[2:50:41]
sources of anxiety that matter
[2:50:42]
to me here which is hardworking
[2:50:42]
people not being displaced in
[2:50:44]
their jobs, not having their
[2:50:49]
jobs place at risk And that's
[2:50:49]
seeming to be a thing that was
[2:50:50]
worked through in that model
[2:50:54]
While also significantly
[2:50:54]
reducing management costs.
[2:50:59]
It just seems like a thing that
[2:51:00]
we should know as a potential
[2:51:03]
tool in the tool belt.
[2:51:04]
I'll just end with this council
[2:51:04]
PRESIDENT.
[2:51:05]
I'm glad we're having this
[2:51:08]
conversation.
[2:51:09]
I think it's important and I
[2:51:13]
appreciate Nate your comments.
[2:51:18]
The reality is is that this is
[2:51:19]
I don't know that there's a
[2:51:19]
single issue where I heard have
[2:51:23]
heard more agreement amongst
[2:51:24]
folks from different sides of
[2:51:24]
the political spectrum.
[2:51:25]
We had some of the most
[2:51:28]
conservative folks who engage
[2:51:28]
with the council and some of
[2:51:29]
the furthest to the left who
[2:51:32]
are in complete agreement that
[2:51:33]
what is what we are currently
[2:51:33]
operating under is
[2:51:38]
unsustainable and unacceptable.
[2:51:38]
And if that doesn't show that
[2:51:42]
the dam is starting to break,
[2:51:42]
that San Diegans are sick and
[2:51:43]
tired of paying so much for
[2:51:46]
their utility bills I don't
[2:51:47]
know what will.
[2:51:47]
And it's that's why it's
[2:51:48]
incumbent upon us to continue
[2:51:51]
this conversation, continue to
[2:51:52]
work so that we know what
[2:51:53]
options we have to both protect
[2:51:54]
workers and protect ratepayers.
[2:51:57]
Thank you, Council PRESIDENT.
[2:51:58]
All right.
[2:51:58]
Well, thank you Council member
[2:51:59]
Eli Rivera.
[2:52:01]
And as a reminder this is an
[2:52:02]
information item and no motion
[2:52:06]
is required And I'm going to
[2:52:07]
jump in at this point.
[2:52:08]
So I want to start out by
[2:52:08]
thanking Heather General
[2:52:13]
Services Team Randy Wilde and
[2:52:13]
the mayor's office and
[2:52:14]
the teams that knew Jen and and
[2:52:17]
for this work And of course
[2:52:17]
thank you to every member of
[2:52:18]
the public who showed up
[2:52:21]
speaking on all sides of
[2:52:22]
the issue And those who called
[2:52:25]
in Phase two report was an
[2:52:26]
equally impressive undertaking
[2:52:26]
as phase one and provided
[2:52:30]
greater detail and clarity on a
[2:52:31]
proposal that is massive in
[2:52:32]
scale and as complex as
[2:52:34]
anything we would undertake at
[2:52:35]
the city.
[2:52:36]
That does not mean we should
[2:52:36]
shy away.
[2:52:40]
We can and will do big things
[2:52:40]
and win Financial impacts on
[2:52:41]
residents and businesses is on
[2:52:44]
the table.
[2:52:44]
We must be bold.
[2:52:45]
I will start by highlighting
[2:52:48]
the opening slide.
[2:52:49]
I mean it's simple Energy
[2:52:50]
utility is both economically
[2:52:50]
feasible and technically
[2:52:54]
feasible.
[2:52:55]
That is what the city set out
[2:52:55]
to determine and should we
[2:52:59]
decide to proceed there is a
[2:52:59]
path forward.
[2:53:00]
Of course that comes with risks
[2:53:03]
that must be weighed and
[2:53:03]
assumptions that must be tested
[2:53:04]
and we will have to find
[2:53:08]
the right balance.
[2:53:09]
And whether you feel the study
[2:53:09]
has been too conservative in
[2:53:13]
its projections or it MAY take
[2:53:13]
longer than initially
[2:53:14]
anticipated.
[2:53:14]
A municipal energy utility
[2:53:18]
remains feasible and since
[2:53:19]
the outset onset of exploring
[2:53:23]
public power and when I voted
[2:53:24]
against the current electric
[2:53:27]
and gas franchises in 2021 I
[2:53:27]
have talked about the limited
[2:53:30]
options we have as a city.
[2:53:31]
But just as we fought for in
[2:53:32]
the creation of the San Diego
[2:53:36]
community power in giving
[2:53:36]
customers options it would be
[2:53:40]
irresponsible of us not to
[2:53:41]
pursue pursue alternatives to
[2:53:45]
our energy distribution system
[2:53:46]
Today's presentation as we've
[2:53:46]
heard coincidentally perhaps
[2:53:50]
prophetically comes just days
[2:53:51]
after sd genius latest general
[2:53:55]
rate case submitted to the cpc.
[2:53:56]
And as we've heard from members
[2:53:59]
of the public sd Janey's own
[2:54:00]
projections are substantially
[2:54:01]
higher than the average annual
[2:54:01]
increase assumed by
[2:54:04]
the consultants in the study.
[2:54:05]
>> As an engineer I appreciate
[2:54:09]
that conservatism moving
[2:54:10]
forward with this process
[2:54:10]
demonstrates our commitment to
[2:54:14]
not sitting back not accepting
[2:54:15]
the status quo nor remaining
[2:54:15]
vulnerable to a monopoly but
[2:54:19]
rather exploring all options to
[2:54:20]
provide more affordable rates
[2:54:24]
keeping our options open and
[2:54:25]
continuing to pursue a
[2:54:29]
municipal energy utility is in
[2:54:30]
everyone's best interest.
[2:54:34]
So for those of you who opposed
[2:54:34]
this conversation, look into
[2:54:39]
the faces who can't afford but
[2:54:39]
don't qualify for subsidies on
[2:54:43]
their electric bill.
[2:54:44]
And for those of you who
[2:54:45]
support, look into the faces of
[2:54:48]
the workers who are wondering
[2:54:49]
whether they will still have a
[2:54:53]
long term career in their
[2:54:53]
chosen profession.
[2:54:58]
And a promise today is not
[2:54:59]
necessarily a promise that will
[2:54:59]
be kept.
[2:55:03]
The two sides of a conversation
[2:55:04]
And for those who oppose
[2:55:08]
municipal tell me the question
[2:55:09]
I ask you is what are you doing
[2:55:12]
to join the city in our efforts
[2:55:13]
to control rates, to control
[2:55:17]
the impact or reduce the impact
[2:55:18]
that is hitting so many San
[2:55:18]
Diegans?
[2:55:23]
And if those who spoke that
[2:55:27]
were prior here at City Hall
[2:55:28]
let me remind you you let a 50
[2:55:32]
year franchise expire with no
[2:55:32]
game plan to give our city
[2:55:36]
options or help control rates.
[2:55:40]
We missed a golden opportunity
[2:55:41]
and 2021 became a very awkward
[2:55:45]
year to realize we had no place
[2:55:46]
to go and a franchise had to be
[2:55:50]
signed to keep the wheels
[2:55:51]
turning so to speak.
[2:55:52]
So this is a difficult
[2:55:55]
conversation.
[2:55:56]
I agree with Councilmember Eloy
[2:55:56]
Rivera.
[2:55:57]
We should keep our options
[2:55:57]
open.
[2:56:00]
We should continue to pursue a
[2:56:01]
municipal energy utility
[2:56:05]
because it's in everyone's best
[2:56:05]
interest.
[2:56:06]
And until we have sd Jeannie
[2:56:10]
come to the table, pull that
[2:56:10]
general rate increase and have
[2:56:13]
the conversation as one member
[2:56:14]
of the public I'm not going to
[2:56:14]
name.
[2:56:15]
He knows who he is and he
[2:56:18]
pleasantly surprised me today
[2:56:19]
and have a real conversation
[2:56:23]
about how we relook at rates
[2:56:23]
knowing as some of you have
[2:56:24]
said that the cpp is not going
[2:56:28]
to save us.
[2:56:29]
And as a reminder cpc doesn't
[2:56:32]
guarantee profits.
[2:56:33]
They set a profit rate to set
[2:56:34]
the rates.
[2:56:38]
And when I won and the investor
[2:56:38]
owned utility exceeds those
[2:56:42]
profit rates year after year
[2:56:42]
after year.
[2:56:43]
Something has to change.
[2:56:46]
We have to protect our most
[2:56:47]
vulnerable individuals who
[2:56:51]
can't afford what should be a
[2:56:52]
right of affordable electricity
[2:56:52]
going forward.
[2:56:57]
>> So that's where we stand
[2:56:57]
today.
[2:56:58]
I agree that we have to keep
[2:57:01]
this on the table going forward
[2:57:02]
And again, thank you for
[2:57:02]
the good work in this phase two
[2:57:03]
study.
[2:57:07]
With that again this is an
[2:57:07]
information item no motions
[2:57:08]
required.
[2:57:08]
We'll turn to council member
[2:57:12]
Campbell, the third member of
[2:57:12]
the Environment Committee.
[2:57:16]
>> Thank you so much.
[2:57:16]
Council PRESIDENT When first
[2:57:21]
elected and thank you for
[2:57:22]
the presentation and thanks to
[2:57:22]
the public for all of your
[2:57:25]
input.
[2:57:25]
It's a.
[2:57:26]
Agreed with and appreciated on
[2:57:30]
all sides.
[2:57:31]
This is a really complicated
[2:57:35]
issue and I want to say that
[2:57:35]
when I was first elected to
[2:57:36]
council I was appointed chair
[2:57:37]
of the Environment Committee
[2:57:40]
That was JANUARY 2019.
[2:57:40]
First thing I did was lead
[2:57:44]
the effort to create community
[2:57:45]
choice aggregation.
[2:57:49]
In other words, what became San
[2:57:50]
Diego community power does now
[2:57:53]
include six cities and our
[2:57:54]
county government which means
[2:57:58]
our unincorporated areas.
[2:57:59]
One of the goals was to provide
[2:57:59]
cleaner energy options to
[2:58:03]
reduce the effects of climate
[2:58:03]
change.
[2:58:04]
It also gave our communities
[2:58:07]
more local control over how we
[2:58:08]
purchase energy And at that
[2:58:11]
time the city commissioned
[2:58:12]
the first feasibility study on
[2:58:15]
municipal izing our energy
[2:58:16]
utilities, gas and electric.
[2:58:20]
And since then we have
[2:58:21]
completed two more studies and
[2:58:26]
spent millions of dollars on
[2:58:26]
consultants to tell us about
[2:58:31]
municipal ization millions of
[2:58:31]
dollars we could use this year
[2:58:35]
in our budget or in a year in
[2:58:35]
our budget.
[2:58:40]
The findings have always been
[2:58:41]
clear The estimated cost is at
[2:58:41]
least 8 billion.
[2:58:45]
That was the first study that
[2:58:48]
was seven years ago is probably
[2:58:49]
16 billion now and that was
[2:58:50]
just for the infrastructure
[2:58:54]
needed.
[2:58:54]
The city cannot afford this.
[2:58:59]
That estimate does not include
[2:59:03]
additional cafs costs staffing
[2:59:04]
operations and onboarding.
[2:59:04]
The impact of exit fees on
[2:59:08]
the other 17 cities that rely
[2:59:13]
on sd Jeannie system and would
[2:59:14]
expect us to pay them
[2:59:18]
the difference or the fact that
[2:59:19]
we still would need to use sd g
[2:59:23]
and e for the gas component.
[2:59:28]
So this study was only about
[2:59:28]
electricity not the g.
[2:59:32]
Part of sd g After three
[2:59:37]
studies we do not need more
[2:59:37]
analysis.
[2:59:38]
We already have the information
[2:59:41]
we need to decide at this point
[2:59:42]
it is too expensive to continue
[2:59:46]
to spend billions of dollars on
[2:59:46]
consultants.
[2:59:51]
It is way too expensive for
[2:59:51]
the billions that the city
[2:59:55]
would have to spend to try to.
[2:59:56]
To provide this utility.
[3:00:00]
It is important to know that
[3:00:01]
the state of California public
[3:00:05]
utilities Commission, the puc
[3:00:10]
it says right there in the law
[3:00:11]
is main responsibility is to
[3:00:15]
protect ratepayers and also
[3:00:16]
decide utility rates In so
[3:00:20]
doing to protect ratepayers.
[3:00:24]
They're supposed to protect us
[3:00:25]
They don't.
[3:00:29]
It's supposed to decide utility
[3:00:34]
rates within mind us consumers
[3:00:34]
The puc needs to be reformed.
[3:00:39]
It needs to be held accountable
[3:00:39]
and I ask you to please
[3:00:44]
inundate them with emails and
[3:00:45]
phone calls and letters that
[3:00:48]
they need to lower sd any rates
[3:00:53]
not raise them.
[3:00:54]
Forming San Diego community
[3:00:58]
power was a good idea and sd
[3:00:59]
Jeannie was in favor and you
[3:01:02]
MAY be wondering why Why would
[3:01:03]
they have been in favor?
[3:01:04]
Because commercial utilities
[3:01:08]
are not allowed to make a
[3:01:09]
profit on what it costs them to
[3:01:13]
buy the power to make
[3:01:13]
electricity And so they handed
[3:01:17]
this off gladly to the San
[3:01:18]
Diego community power.
[3:01:22]
Do you know that 95% of
[3:01:22]
electric customers have signed
[3:01:26]
up for San Diego community
[3:01:26]
power?
[3:01:27]
It's a good thing It's been
[3:01:31]
very successful.
[3:01:32]
It has millions of dollars in
[3:01:36]
its reserve.
[3:01:36]
The question is why have they
[3:01:41]
not lowered their rates?
[3:01:42]
We need to have them come in
[3:01:45]
and answer that for us.
[3:01:46]
Meantime, we need to stop
[3:01:50]
spending on consultant reports
[3:01:51]
I think this last one was $3
[3:01:52]
million.
[3:01:52]
It's ridiculous.
[3:01:55]
Is going to come out the same
[3:01:55]
every time.
[3:01:59]
It's very, very expensive And
[3:02:00]
the city has 100 and $100
[3:02:01]
million deficit It can't even
[3:02:05]
meet And we're supposed to
[3:02:08]
spend 8,000,000,008 billion 60
[3:02:09]
billion to become an electric
[3:02:10]
company?
[3:02:10]
No, no, no.
[3:02:13]
That doesn't make any sense at
[3:02:14]
all.
[3:02:15]
We cannot afford to be a power
[3:02:18]
company In the meantime, as dg
[3:02:22]
and his top executives and
[3:02:23]
those of many other
[3:02:23]
corporations in this nation
[3:02:27]
need to decide how many
[3:02:28]
millions of dollars a year do
[3:02:32]
they need to live on?
[3:02:32]
This is ridiculous.
[3:02:33]
Just as my my colleague
[3:02:37]
Councilmember Ella Rivera said,
[3:02:41]
the guy in 2025 made $25
[3:02:42]
million a year.
[3:02:42]
It's ridiculous.
[3:02:47]
Think if you only made a couple
[3:02:47]
of million dollars a year how
[3:02:51]
many rates could be lowered?
[3:02:52]
Quite a few.
[3:02:52]
Quite a few.
[3:02:53]
And so I say to all the top
[3:02:56]
executives of the corporations
[3:02:57]
in this nation how much money
[3:03:04]
do you really need at the cost
[3:03:08]
of making your consumers poor?
[3:03:09]
Greed is evil.
[3:03:14]
Stop practicing it.
[3:03:14]
>> Thank you.
[3:03:15]
Council PRESIDENT All right.
[3:03:15]
Thank you, Council member
[3:03:16]
Campbell.
[3:03:19]
We'll go next to council member
[3:03:19]
Von Walbert.
[3:03:22]
Thank you very much for your
[3:03:23]
work today and for
[3:03:23]
the presentation.
[3:03:24]
Thank you for everyone who's
[3:03:28]
come in today to express a very
[3:03:28]
justified frustration over
[3:03:29]
the fact that effigy enables
[3:03:32]
continue to go up including our
[3:03:33]
own workers who also don't want
[3:03:33]
to pay that.
[3:03:37]
And I want to thank the workers
[3:03:38]
who came in, especially our
[3:03:39]
veterans who served in Iraq and
[3:03:42]
Afghanistan.
[3:03:42]
I can't imagine what you've
[3:03:43]
seen.
[3:03:43]
You know, this past Memorial
[3:03:47]
Day we just did a memorial
[3:03:47]
commemorations only for folks
[3:03:51]
who died in the Afghanistan and
[3:03:52]
Iraqi wars because they were
[3:03:56]
our generation.
[3:03:57]
And so just know that you have
[3:03:58]
sacrificed a lot in coming in
[3:03:58]
and getting training from ibew
[3:04:01]
which is one of the most
[3:04:02]
incredible veterans transition
[3:04:03]
employers in this country is
[3:04:07]
fantastic And I want to thank
[3:04:08]
you for continuing to do that
[3:04:08]
work.
[3:04:09]
So I know that we up here care
[3:04:09]
about you.
[3:04:11]
We care about union workers And
[3:04:11]
I'm going to show you why what
[3:04:12]
we're going to do.
[3:04:15]
I also want to thank
[3:04:16]
the environmentalist who came
[3:04:17]
in San Diego 350 and everyone
[3:04:19]
who's been trying to take away
[3:04:19]
the monopoly power of this
[3:04:24]
company as we should our our
[3:04:25]
public power should not be a
[3:04:25]
monopoly.
[3:04:28]
We should not be paying $22
[3:04:28]
million alone To the ceo
[3:04:33]
Jeffrey Martin of Sempra last
[3:04:33]
year.
[3:04:34]
We just should none of us have
[3:04:37]
a choice about whether or not
[3:04:38]
we pay a fee.
[3:04:39]
You need to keep our power on
[3:04:42]
but I want everyone who's in
[3:04:42]
the room all the union workers
[3:04:43]
especially or anyone who works
[3:04:44]
at a job to pay attention to
[3:04:44]
this.
[3:04:47]
This is a public website from
[3:04:48]
the Office of Labor Management
[3:04:48]
Standards.
[3:04:49]
It's under the Department of
[3:04:51]
Labor.
[3:04:52]
You can check this website to
[3:04:53]
see if your employer is paying
[3:04:56]
union busters for the most
[3:04:57]
part.
[3:04:57]
We'll get to Jackson Lewis go
[3:04:58]
to the next slide please.
[3:05:01]
We did check this website when
[3:05:02]
we had to renew the franchise
[3:05:05]
agreement as council PRESIDENT
[3:05:06]
LaCava said and we all got
[3:05:07]
elected up here.
[3:05:07]
We were forced with this
[3:05:11]
renewal for stg and our
[3:05:12]
predecessors didn't do anything
[3:05:13]
about it and left it in our
[3:05:17]
laps This is a formal Clinton
[3:05:17]
report.
[3:05:18]
You can see it highlighted.
[3:05:19]
It's from c, g and e Studio gas
[3:05:20]
and electric from 2019.
[3:05:21]
Please go to the next slide.
[3:05:22]
This is a public report.
[3:05:25]
They have two to show if
[3:05:26]
they're going to hire union
[3:05:29]
busters they are public facing
[3:05:30]
in 2019 as you paid tens of
[3:05:30]
thousands of dollars of our
[3:05:33]
rate payer money to hire crews
[3:05:34]
and associates to be their
[3:05:35]
independent labor consultant
[3:05:39]
who is known nationwide to be
[3:05:39]
one of the biggest union
[3:05:40]
busters in the nation.
[3:05:43]
They were trying to rent steel
[3:05:44]
you need from hiring from
[3:05:44]
unionizing the coal center
[3:05:45]
workers And I know ibew came to
[3:05:49]
the call center Workers Aid and
[3:05:49]
made sure this didn't happen
[3:05:50]
before the next slide please.
[3:05:53]
This is the one from 2018 which
[3:05:54]
you can see Crews Associates
[3:05:56]
was paid This one I think was
[3:05:57]
signed by Scott Crider who is
[3:06:01]
now I believe the ceo of cgt.
[3:06:01]
They paid them $33,000 to hire
[3:06:06]
union busters to fight
[3:06:06]
The unionized work to cgt had
[3:06:07]
been hiring union busters And
[3:06:10]
when they came to this Dyess to
[3:06:11]
get a renewal I required cgt
[3:06:12]
their ceo to say they would not
[3:06:14]
hire union busters again with
[3:06:19]
our money And you agreed?
[3:06:20]
I think at the end of
[3:06:23]
the slides you do down And so
[3:06:24]
I'm really upset to see that
[3:06:25]
when ibew tried to get some of
[3:06:29]
their supervisor employees who
[3:06:30]
don't actually supervise anyone
[3:06:30]
into the union which is a
[3:06:31]
common union busting tactic for
[3:06:34]
an employer to say they have
[3:06:35]
supervisory responsibilities
[3:06:39]
which they don't You hired
[3:06:40]
Jackson Lewis but guess what?
[3:06:40]
You don't have to report that
[3:06:41]
because there's a loophole in
[3:06:44]
federal law that says if you
[3:06:45]
hire a lawyer to you your union
[3:06:46]
busting you can call it legal
[3:06:49]
services.
[3:06:50]
Congress can change this law
[3:06:50]
and I hope they do.
[3:06:54]
They haven't anyway, I am sick
[3:06:55]
and tired of seeing cgt crush
[3:06:55]
its workers at our expense and
[3:06:58]
I want you to know that
[3:06:59]
everyone on this diet is going
[3:07:00]
to work hard to make sure
[3:07:00]
whatever transition happens
[3:07:03]
union jobs are protected.
[3:07:04]
You do incredibly hard work at
[3:07:05]
a high voltage and none of us
[3:07:09]
are trying to do and we
[3:07:10]
respected value for that.
[3:07:11]
If you need me on a strike line
[3:07:11]
call me.
[3:07:12]
I'll be there.
[3:07:18]
That said, I'm questions First
[3:07:24]
of all what would taking over
[3:07:24]
the power structure look
[3:07:25]
the power infrastructure look
[3:07:28]
like Obviously you need is not
[3:07:29]
willing to sell their assets.
[3:07:30]
So legally what would the city
[3:07:33]
do if we were to do that?
[3:07:34]
>> So if we use the San
[3:07:35]
Francisco model as the current
[3:07:39]
Calif fornia template San
[3:07:42]
Francisco City County they're
[3:07:43]
all one thing did make an offer
[3:07:48]
to pge to purchase the wires in
[3:07:49]
their system and you kind of
[3:07:50]
didn't pick up the phone So San
[3:07:54]
Francisco petitioned to
[3:07:55]
the cpsc which regulates pge to
[3:07:59]
require pge to to establish a
[3:08:00]
purchase price.
[3:08:00]
>> So that is as Scott
[3:08:05]
mentioned, the biggest variable
[3:08:06]
about how all of this modeling
[3:08:06]
and economics really works
[3:08:07]
where feasible, where your cash
[3:08:11]
flow is, etc. That is now a
[3:08:11]
process that is ongoing.
[3:08:12]
The first decision came out in
[3:08:16]
the fall and that set
[3:08:17]
the framework of what has to
[3:08:17]
happen afterwards which
[3:08:22]
includes prey's appraisals of
[3:08:23]
the system by both parties,
[3:08:24]
multiple different valuations
[3:08:27]
and a basic set of principles
[3:08:27]
regarding things like just
[3:08:32]
compensation etc. So we know
[3:08:33]
that that step is in there.
[3:08:38]
>> There is our current
[3:08:39]
understanding and I will I am
[3:08:43]
not a lawyer so a grain of salt
[3:08:44]
a high probability that at some
[3:08:45]
point an action like this would
[3:08:46]
probably need to go to
[3:08:49]
the ballot.
[3:08:50]
And so one of the I would say
[3:08:51]
the next step that moves this
[3:08:55]
past feasibility if there is
[3:08:56]
interest in continuing this
[3:08:56]
effort is moves it into
[3:09:00]
the kind of political
[3:09:05]
regulatory legal area.
[3:09:06]
>> What that looks like really
[3:09:07]
frankly is a discussion and
[3:09:11]
guidance that will be given to
[3:09:12]
staff from discussions between
[3:09:13]
the mayor's office and council
[3:09:13]
Randi, I don't know if you have
[3:09:19]
anything to add.
[3:09:20]
I would say that there is not
[3:09:24]
currently allocated resources
[3:09:25]
to go hire more consultants or
[3:09:26]
staff resources to go do a lot
[3:09:31]
of that work in this current
[3:09:31]
fiscal year.
[3:09:32]
So our intention is to watch
[3:09:32]
closely what happens with
[3:09:36]
the San Francisco case.
[3:09:37]
Well not exactly the same
[3:09:37]
scenario as what would be
[3:09:42]
the case in San Diego for a
[3:09:43]
number of different reasons
[3:09:44]
would certainly set a lot of
[3:09:44]
precedents in terms of
[3:09:48]
the valuation methodology and
[3:09:48]
the process that the city of
[3:09:49]
San Diego would go through.
[3:09:50]
I think there's other decisions
[3:09:54]
that would need to be made if
[3:09:54]
the city were to move forward,
[3:09:55]
what would be the structure of
[3:09:55]
the new entity?
[3:09:56]
Would that be a special
[3:09:59]
district as recommended in
[3:09:59]
the report?
[3:10:00]
What type of a special district
[3:10:01]
would that be?
[3:10:05]
That MAY or MAY not require a
[3:10:06]
ballot measure or a vote of
[3:10:07]
the people depending on how
[3:10:07]
that structured MAY or MAY not
[3:10:11]
require less co component.
[3:10:12]
Again, I'm also not an attorney
[3:10:13]
so I would defer to them on
[3:10:13]
that.
[3:10:14]
But there's a number of
[3:10:14]
different decisions that need
[3:10:17]
to be made about the structure
[3:10:18]
and the process.
[3:10:18]
But I think that the highest
[3:10:19]
priority for us since this is
[3:10:23]
kind of the new process
[3:10:24]
established by the state is
[3:10:25]
through this cpc is to really
[3:10:25]
monitor closely what happens in
[3:10:30]
the San Francisco pge case.
[3:10:30]
Okay.
[3:10:31]
i have a question for a
[3:10:32]
question about the district.
[3:10:35]
So I, I, I do believe that
[3:10:35]
the power system should be
[3:10:41]
governed by a nonprofit.
[3:10:42]
I do not believe the city of
[3:10:42]
San Diego as a beautiful
[3:10:43]
corporation is ready to take
[3:10:43]
this on.
[3:10:47]
We can barely operate a water
[3:10:47]
department.
[3:10:48]
We are struggling to figure out
[3:10:49]
if we can deploy our own
[3:10:49]
ambulance system if we have to
[3:10:53]
bring that in-house.
[3:10:54]
But I do believe there's
[3:10:55]
another opportunity and that is
[3:10:55]
what Sacramento did with
[3:11:01]
the Sacramento Municipal
[3:11:02]
Utility District And this is
[3:11:02]
what I hope the advocates
[3:11:03]
listen to the city ceo you you
[3:11:06]
get a sales tax passed last
[3:11:06]
year because voters didn't
[3:11:07]
trust us.
[3:11:08]
I think the better option is
[3:11:08]
not to saddle this on the city
[3:11:11]
the better option is to create
[3:11:12]
a public utility district which
[3:11:13]
is run by experts And but
[3:11:19]
the only way anyone would vote
[3:11:20]
for this and I would vote for
[3:11:20]
this is if there was concrete
[3:11:21]
new protections for union
[3:11:22]
workers and they should have a
[3:11:24]
role in the ballot measure if
[3:11:25]
we're ever to get to that point
[3:11:26]
because there's no way I would
[3:11:26]
You're working with us and we
[3:11:29]
need our workers to provide
[3:11:30]
the power we need anyway.
[3:11:30]
So how would that process look
[3:11:34]
like?
[3:11:35]
>> As Randy mentioned,
[3:11:36]
the special district process
[3:11:40]
looks different depending on
[3:11:40]
one or multiple parties going
[3:11:41]
after it.
[3:11:41]
This is all kind of outlined in
[3:11:46]
California Public utilities
[3:11:47]
code so various structures
[3:11:52]
require votes by council and
[3:11:53]
then going to the ballot Some
[3:11:54]
of them it can be go to
[3:11:54]
the ballot directly.
[3:11:59]
So a lot of it is the structure
[3:11:59]
that is put in place and
[3:12:00]
therefore the special district
[3:12:01]
is defined by public utility
[3:12:04]
code.
[3:12:05]
I'm happy to follow up with you
[3:12:06]
with those specific areas of
[3:12:06]
law.
[3:12:06]
I do not want to even attempt
[3:12:11]
to quote them off the cuff yet.
[3:12:11]
>> Sounds like a lack of
[3:12:12]
question.
[3:12:16]
Understood that a question
[3:12:16]
about this valuation I have a
[3:12:17]
feeling it's going to be much
[3:12:18]
higher than what's even the $7
[3:12:23]
billion just because you know I
[3:12:23]
don't think you do You wouldn't
[3:12:24]
willingly sell its assets which
[3:12:27]
means it would go to some kind
[3:12:28]
of eminent domain for closure.
[3:12:28]
I don't know.
[3:12:29]
And that would be litigated
[3:12:30]
every step of the way which
[3:12:34]
would increase the cost
[3:12:34]
exponentially.
[3:12:35]
So just I have a feeling that
[3:12:36]
what's going to happen in San
[3:12:39]
Francisco a wealthy the one
[3:12:40]
thing I do give you credit for
[3:12:45]
every time we're here is
[3:12:46]
the wildfire work they are
[3:12:47]
doing which the Witch Creek
[3:12:47]
Fire didn't have to happen to
[3:12:51]
have that led down that path by
[3:12:51]
the emergency operation center
[3:12:52]
to see if you need to start up
[3:12:53]
is state of the art.
[3:12:57]
It's incredible.
[3:12:58]
It's catching fires left and
[3:12:59]
right And I appreciate the fact
[3:12:59]
that they've also invested in
[3:13:02]
wildfire attack helicopters.
[3:13:03]
So does this study also
[3:13:04]
encapsulate the cost of taking
[3:13:05]
over the emergency operations
[3:13:08]
center Because we cannot take
[3:13:09]
over utility if we're not going
[3:13:10]
to protect us from wildfires.
[3:13:14]
It doesn't because the vast
[3:13:14]
majority of the area that
[3:13:20]
the eoc monitors is not within
[3:13:21]
the city of San Diego.
[3:13:21]
It does imagine a portion of
[3:13:22]
the costs that currently are
[3:13:26]
expended within wildfire
[3:13:26]
mitigation as a part of
[3:13:27]
the overall operating costs and
[3:13:28]
thus a revenue requirement for
[3:13:33]
the utility as well as pieces
[3:13:33]
of you know there's someone
[3:13:34]
mentioned liability so there's
[3:13:38]
liability insurance etc. So
[3:13:39]
that would need to be carried
[3:13:39]
for those areas that are
[3:13:40]
subject to it.
[3:13:45]
But again I think it's
[3:13:45]
remembering that if you're
[3:13:46]
separating out the system, what
[3:13:47]
now there also then would need
[3:13:50]
to be coordination between
[3:13:51]
the two and that kind of goes
[3:13:52]
to about just compensation
[3:13:57]
piece of how much has already
[3:13:58]
been paid for by San Diego
[3:14:03]
ratepayers how much would
[3:14:04]
therefore need to be And some
[3:14:04]
of that is also subject to you
[3:14:08]
know the cpc as was mentioned
[3:14:09]
as dgt makes a revenue request
[3:14:10]
specifically within
[3:14:10]
the wildfire mitigation fund
[3:14:11]
that includes the cost of
[3:14:15]
operation of the that's the cpc
[3:14:16]
then decides how much of that
[3:14:17]
can and cannot be rate based or
[3:14:17]
should or should not be
[3:14:20]
expended.
[3:14:21]
And so what role for
[3:14:27]
the municipal utility in an
[3:14:28]
area that is definitely at risk
[3:14:28]
because of fires in not its
[3:14:33]
territory pays and plays in
[3:14:34]
the operations to ensure that
[3:14:34]
those fires don't get anywhere
[3:14:39]
near the territory would all be
[3:14:40]
part of the negotiations
[3:14:40]
between the parties.
[3:14:41]
So the feasibility study
[3:14:45]
incorporates modeled costs for
[3:14:45]
that but it doesn't outline for
[3:14:50]
a whole bunch of reasons how
[3:14:51]
specifically those negotiations
[3:14:51]
would go because simply we
[3:14:52]
can't speak for the other side
[3:14:52]
of the table.
[3:14:56]
Okay, got it.
[3:14:57]
But that would be something
[3:14:58]
that's incredibly important
[3:14:58]
that needs to be thought about.
[3:15:04]
Absolutely.
[3:15:05]
Yeah, I was I suppose you would
[3:15:06]
require utility to do something
[3:15:11]
similar So we satellite involve
[3:15:12]
ours of another state but there
[3:15:12]
are many things I wish the cbc
[3:15:13]
would do.
[3:15:13]
Okay.
[3:15:13]
Okay.
[3:15:18]
My last my colleagues have
[3:15:19]
covered a lot of this.
[3:15:20]
I mean what about the fact that
[3:15:23]
there's an 8.6% request for a
[3:15:24]
rate hike and the feasibility
[3:15:25]
study had anticipated four per
[3:15:25]
year?
[3:15:29]
You know what is this large
[3:15:30]
hike that I see Judy want to
[3:15:31]
add to our bills once again due
[3:15:32]
to the feasibility study?
[3:15:32]
Sure.
[3:15:35]
So I think some of the thing to
[3:15:36]
remember is over a 30 year
[3:15:37]
horizon we specifically picked
[3:15:39]
4% one because historically in
[3:15:40]
the past two grc that's
[3:15:40]
approximately been the end
[3:15:41]
decision.
[3:15:46]
So cgu usually asks for more
[3:15:47]
money and then it gets cut down
[3:15:51]
through the grc process.
[3:15:52]
So fundamentally if you look at
[3:15:53]
that sensitivity graph,
[3:15:57]
the higher the rate increase
[3:15:58]
annually for us, Jenny,
[3:15:59]
the more cumulative benefit
[3:16:04]
there would be for utility that
[3:16:04]
is only replacing its revenue
[3:16:05]
requirements, right?
[3:16:10]
And so you can kind of say if
[3:16:10]
their rates are significantly
[3:16:11]
higher than they're saying
[3:16:12]
their revenue requirement is
[3:16:15]
significantly higher than
[3:16:15]
the That's what that
[3:16:16]
distinction is because this is
[3:16:17]
just their proposal.
[3:16:21]
We don't know what the cpc is
[3:16:22]
going to decide And because it
[3:16:23]
is frankly only a four year
[3:16:26]
picture and we're trying to do
[3:16:26]
a 30 year model providing a
[3:16:32]
conservative estimate is gives
[3:16:32]
us and it's still feasible at
[3:16:37]
4% then at 6% it is also
[3:16:37]
feasible from an economic
[3:16:38]
perspective at 8% it is still
[3:16:39]
feasible from an economic
[3:16:43]
perspective.
[3:16:43]
So it's 8% increase in 20 I'm
[3:16:44]
sorry it's overall in
[3:16:49]
the system it's actually a 5%
[3:16:50]
increase in f y 28 sorry in
[3:16:54]
2028 from 2027 rates So we
[3:16:55]
haven't seen those yet.
[3:16:59]
2028 is 8.5% and then 20 sorry
[3:17:00]
2029 is 8.5% and then 2030 and
[3:17:00]
2031 about 5.5%.
[3:17:04]
So again we're trying to blend
[3:17:05]
out a 30 year annual rate
[3:17:09]
increase in order to make those
[3:17:10]
numbers line up accurately and
[3:17:11]
ensure when we say it's
[3:17:11]
economically feasible you're
[3:17:16]
doing that with a responsibly
[3:17:22]
conservative number on
[3:17:23]
the Jenny side so you're not
[3:17:23]
overpromising savings that MAY
[3:17:28]
or MAY not manifest.
[3:17:28]
Okay.
[3:17:29]
Understood.
[3:17:29]
Thank you.
[3:17:30]
Thank you for the update.
[3:17:31]
Thank you for going down this
[3:17:35]
incredibly complex study and
[3:17:35]
what we're trying to do to at
[3:17:36]
least give the city and
[3:17:37]
the residents who live here
[3:17:42]
some kind of negotiating power
[3:17:42]
over city.
[3:17:43]
You know, it's very hard to do
[3:17:47]
that when did the monopoly but
[3:17:48]
it has to include protections
[3:17:49]
for our workers who work very
[3:17:49]
hard to make sure the lights
[3:17:52]
and the gas are literally
[3:17:53]
turned on every day And it
[3:17:54]
needs to account for
[3:17:58]
the catastrophic litigation
[3:17:59]
costs that are going to come
[3:17:59]
with trying to separate from
[3:18:00]
this.
[3:18:00]
But again, that's why I think
[3:18:05]
the utility district would be
[3:18:06]
better to take this on to
[3:18:07]
the city of San Diego itself
[3:18:07]
because that could be a fight
[3:18:11]
the good fight the city and I
[3:18:12]
don't think we can do this on
[3:18:13]
our own in a city needs to
[3:18:16]
charge lower rates.
[3:18:17]
We have no ability to handle
[3:18:18]
that here at the city of San
[3:18:23]
Diego We did Under California
[3:18:23]
state law it is Sacramento to
[3:18:24]
decide how and when a city
[3:18:28]
charges its rates.
[3:18:29]
However, in the next few years
[3:18:29]
in 20 2030 our franchise
[3:18:30]
agreement could be opened up
[3:18:35]
again by the future City
[3:18:36]
Council who sits here.
[3:18:36]
I will be termed out.
[3:18:37]
Many of us will be turned out
[3:18:39]
but we are trying to do is make
[3:18:40]
sure that 2030 if the future
[3:18:40]
Council wants to put
[3:18:41]
the pressure on cgt to lower
[3:18:45]
rates they will now be able to
[3:18:46]
do that because of the work
[3:18:46]
we're doing going down this
[3:18:47]
road with the public
[3:18:48]
marketability study and we need
[3:18:52]
to continue to strengthen our
[3:18:52]
hand to lower rates for our
[3:18:53]
state.
[3:18:53]
You need to they charge too
[3:18:54]
much.
[3:18:57]
Thank you.
[3:18:57]
All right.
[3:18:58]
Thank you, gentlemen.
[3:18:59]
Bonneville We'll go next to
[3:18:59]
Councilmember Flippen.
[3:19:01]
Thank you, Council PRESIDENT.
[3:19:02]
First of all, thank you to
[3:19:03]
everybody who provided public
[3:19:07]
comment this afternoon.
[3:19:08]
I took a lot of notes, very
[3:19:09]
interesting comments from
[3:19:10]
everybody here appreciated that
[3:19:13]
I have a few questions for our
[3:19:14]
consultant There is it says
[3:19:19]
the potential for average
[3:19:19]
customer savings of $500 a year
[3:19:24]
or which would equate to about
[3:19:25]
$42 about the end of the 30
[3:19:26]
year study period is that in
[3:19:31]
today's dollars 30 years from
[3:19:38]
now $42 MAY not seem like that
[3:19:39]
much.
[3:19:39]
So if you say the potential
[3:19:40]
savings then would be
[3:19:42]
the equivalent of what $42
[3:19:43]
about this today or would it be
[3:19:44]
$42.30 years from now to
[3:19:49]
the extent the analysis is
[3:19:50]
looking at a sort of average
[3:19:50]
bill, it would be in today's
[3:19:51]
dollars We're looking at
[3:19:52]
the percentage that were
[3:19:54]
proposed or was projected to be
[3:19:55]
relative to the savings.
[3:20:00]
And looking at the flip side,
[3:20:00]
you talk about the risk What
[3:20:01]
would be the worst case
[3:20:06]
scenario if things went south
[3:20:06]
in term in real terms what bad
[3:20:12]
things could happen to the city
[3:20:13]
in terms of what bad things I
[3:20:19]
mean, you know, who knows,
[3:20:19]
right?
[3:20:20]
I mean you could say that that
[3:20:25]
I mean I don't really know that
[3:20:25]
to tell you the truth.
[3:20:26]
But what bad things could
[3:20:27]
happen is that is that the you
[3:20:27]
know, the utility could incur
[3:20:30]
you know, costs like any other
[3:20:31]
utility incurred costs and have
[3:20:32]
to pass those costs on to a
[3:20:37]
ratepayer right Just in terms
[3:20:38]
of commodity cost, in terms of
[3:20:38]
all the costs that it takes
[3:20:43]
operating ability there's
[3:20:44]
there's always a potential
[3:20:48]
those costs could exceed beyond
[3:20:49]
what anybody could imagine and
[3:20:50]
then in which case those costs
[3:20:51]
would have to be recovered by
[3:20:54]
ratepayers.
[3:20:54]
Okay.
[3:20:55]
So essentially you're not
[3:20:56]
seeing a lot of financial risk
[3:21:02]
for the city as I mean it's a
[3:21:02]
poor entity in of itself.
[3:21:03]
You would see the financial
[3:21:06]
risk as being contained within
[3:21:07]
the utility structure.
[3:21:12]
Okay.
[3:21:13]
You've prepared a 200 page
[3:21:14]
report and analysis on
[3:21:19]
the feasibility Based on what
[3:21:20]
you know in your expertise, do
[3:21:20]
you think that San Diego should
[3:21:24]
go to a minimal utility?
[3:21:25]
I believe the report suggests
[3:21:26]
that it's financially feasible
[3:21:26]
to do so.
[3:21:30]
Okay.
[3:21:31]
I will turn now to the Office
[3:21:31]
of the Independent Budget
[3:21:36]
Analyst MR. Boer, your thoughts
[3:21:40]
on this?
[3:21:47]
My thoughts on this are many So
[3:21:48]
I will tell you what I've been
[3:21:49]
telling sort of leading up to
[3:21:49]
this meeting.
[3:21:50]
>> I've had many meetings I've
[3:21:54]
met with general Services, I've
[3:21:55]
met with Public power San
[3:21:55]
Diego, I've met with San Diego
[3:21:59]
Gas and Electric all three
[3:21:59]
entities the same thing.
[3:22:00]
We've had three studies.
[3:22:01]
They're all directionally
[3:22:05]
pointing the same direction
[3:22:06]
which is yeah, it's most likely
[3:22:06]
economically feasible.
[3:22:07]
The questions that are still
[3:22:11]
being raised how much is it
[3:22:11]
going to cost?
[3:22:12]
What's the revenue projections
[3:22:12]
going to look like?
[3:22:17]
Those types of things Another
[3:22:18]
study is not going to tell you
[3:22:19]
because there are things that
[3:22:19]
need to be worked out either
[3:22:23]
through the cpc proceeding or
[3:22:23]
somebody writing down on a
[3:22:24]
ballot measure What is this
[3:22:25]
thing going to look like?
[3:22:30]
What is structure going to be
[3:22:31]
and how is it going to operate
[3:22:32]
And then sending that ballot
[3:22:32]
measure to the people for a
[3:22:33]
decision.
[3:22:36]
So at this point I think
[3:22:36]
the study is sound.
[3:22:37]
It's a sound of the committee.
[3:22:42]
It's showing a path that could
[3:22:42]
be taken with known risks At
[3:22:43]
this point as Heather kind of
[3:22:48]
alluded to earlier, it's now a
[3:22:48]
policy decision on what
[3:22:49]
the people want to do.
[3:22:54]
How would you want to frame it
[3:22:55]
and how would you want to craft
[3:22:55]
If you want to craft a ballot
[3:22:56]
measure, how is that going to
[3:23:00]
look That will start answering
[3:23:01]
a lot of the questions that are
[3:23:01]
here today but it's kind of
[3:23:05]
going above the staff paper of
[3:23:06]
you know what they can answer
[3:23:12]
for you.
[3:23:12]
Okay.
[3:23:13]
Thank you, Council PRESIDENT.
[3:23:13]
All right.
[3:23:14]
Thank you, gentlemen.
[3:23:17]
Whitburn we'll go next to
[3:23:18]
Council member Campion Thank
[3:23:19]
you very much, Council
[3:23:19]
PRESIDENT And thank you to
[3:23:23]
the public for your
[3:23:23]
participation today.
[3:23:24]
Obviously a very big
[3:23:25]
conversation for our city
[3:23:29]
talking about over $10 billion
[3:23:30]
in one way or another in cost
[3:23:35]
and potentially more than that
[3:23:35]
in savings.
[3:23:36]
I want to get to the heart of
[3:23:41]
some key questions that keep
[3:23:42]
coming up in this is it's not
[3:23:43]
very often we have both sides
[3:23:46]
of the debate here to be able
[3:23:47]
to answer them.
[3:23:48]
I think the first thing I want
[3:23:48]
to point out is that we're not
[3:23:49]
going to get anywhere without
[3:23:53]
our workers who repair
[3:23:54]
the lines and make sure our
[3:23:54]
energy gets to our hospitals.
[3:23:59]
Schools and homes are taken
[3:24:00]
care of and that their jobs are
[3:24:00]
protected because they're just
[3:24:04]
too many livelihoods at risk to
[3:24:05]
make sure that they don't don't
[3:24:06]
get to continue their careers,
[3:24:09]
have their retirements
[3:24:10]
protected and their families
[3:24:16]
cared for.
[3:24:17]
The representative from sd
[3:24:18]
Eugenie would come to that
[3:24:18]
answer a few questions just
[3:24:25]
very directly.
[3:24:25]
Thank you.
[3:24:26]
MRS..
[3:24:30]
Thank you for being here.
[3:24:31]
Given the report that's in
[3:24:32]
front of us very explicitly and
[3:24:37]
directly, what is the issue
[3:24:38]
that you believe makes whether
[3:24:42]
it's municipal ization or a
[3:24:43]
nonprofit utility which are
[3:24:49]
very close to the same in this
[3:24:49]
debate?
[3:24:50]
What's what do you think is
[3:24:54]
the most risky part of that
[3:24:55]
plan?
[3:24:55]
Sure.
[3:24:56]
I think the riskiest part of
[3:24:56]
the plan is the cost.
[3:25:01]
I don't think this report
[3:25:01]
captures the full cost to
[3:25:02]
acquire our assets And as I was
[3:25:07]
talking about the exit fee to
[3:25:07]
make other customers whole.
[3:25:11]
So if you even take the 9
[3:25:12]
billion just to acquire
[3:25:12]
the assets, separate
[3:25:17]
the separate the system and
[3:25:17]
then ensure that the other
[3:25:18]
cities in our territory.
[3:25:18]
Chula Vista Imperial Beach
[3:25:24]
Alcohol and Carlsbad don't see
[3:25:25]
a significant rate increase
[3:25:29]
when the city leaves The city
[3:25:30]
of San Diego would have to pay
[3:25:30]
a significant fee to ensure
[3:25:35]
that that that doesn't happen.
[3:25:35]
That would be billions of
[3:25:36]
dollars.
[3:25:37]
So you're taking an asset to
[3:25:41]
purchase the assets of $9.3
[3:25:41]
billion and then several
[3:25:42]
billion dollars on top of that.
[3:25:47]
The feasibility study itself
[3:25:48]
says that it's $7.5 billion.
[3:25:49]
There will be a rate increase
[3:25:51]
for the first 12 years.
[3:25:52]
Then at some point rates going
[3:25:56]
to flatten out And in 30 years
[3:25:56]
there's a very de minimus
[3:25:57]
decrease in rates.
[3:25:57]
I can just things that we can
[3:26:01]
be doing right now to reduce
[3:26:02]
rates that we'd love to work
[3:26:02]
with the City council on.
[3:26:03]
I think I've talked to many of
[3:26:07]
your officers about this Almost
[3:26:07]
30% of our bills are made up of
[3:26:08]
state mandates and we would
[3:26:13]
love to work with the city
[3:26:13]
the city council.
[3:26:14]
We're happy to come in to talk
[3:26:14]
to you.
[3:26:15]
Let's work at this at
[3:26:19]
Sacramento and take these cost
[3:26:19]
ineffective things out of our
[3:26:20]
bills would immediately reduce
[3:26:25]
bills JANUARY first.
[3:26:26]
Okay.
[3:26:26]
Thank you.
[3:26:26]
Okay.
[3:26:30]
From public power San Diego
[3:26:31]
the issue of the cost.
[3:26:32]
But when I looked at
[3:26:37]
the spreadsheet realizing that
[3:26:42]
4% was the 4%, was it assumed
[3:26:42]
increase in electrical rates
[3:26:43]
annually?
[3:26:43]
Right.
[3:26:47]
I think far higher than that in
[3:26:47]
the last ten years.
[3:26:48]
Right.
[3:26:48]
Almost a doubling in 13 years.
[3:26:49]
14 years, something like that.
[3:26:52]
Correct?
[3:26:53]
Generally speaking, yes.
[3:26:53]
Okay.
[3:26:54]
So the cost of the system
[3:26:58]
relative to the cost to
[3:26:59]
the ratepayers that we're
[3:27:03]
seeing someone from San Diego,
[3:27:04]
what would you address that
[3:27:04]
issue related to
[3:27:05]
the disassociation cost that
[3:27:08]
we're going to have to pay to
[3:27:09]
the other municipalities
[3:27:12]
Because I know that one model
[3:27:13]
of this is to not take over
[3:27:14]
the transmission.
[3:27:14]
It's only to take over
[3:27:17]
the distribution.
[3:27:18]
What's your response to what
[3:27:24]
MRS. Just said about that fee
[3:27:24]
We'd have to pay other cities.
[3:27:25]
Well there is no fee yet that
[3:27:29]
we might pay.
[3:27:30]
I think I would side with I
[3:27:31]
think Heather's comment that
[3:27:34]
all of this would be a
[3:27:35]
negotiation.
[3:27:35]
We don't know where that's
[3:27:36]
going to land.
[3:27:39]
We talked about how much fire
[3:27:40]
exposure we have as a city That
[3:27:44]
would be it's partly in
[3:27:45]
the model already but this idea
[3:27:50]
that there are billions pending
[3:27:51]
that we would have to pay is
[3:27:55]
based on nothing at this point
[3:27:56]
That would be something we
[3:27:56]
would discuss.
[3:28:01]
But keep in mind the electrical
[3:28:01]
workers would stay.
[3:28:02]
They would be maintaining
[3:28:02]
the system.
[3:28:03]
I just wanted you to focus on
[3:28:06]
that part portion that she
[3:28:06]
brought up.
[3:28:07]
I know there's lots of
[3:28:07]
components that have been
[3:28:08]
brought up to date but you're
[3:28:11]
telling me we just don't know
[3:28:12]
what that true cost to
[3:28:12]
the associate would be here?
[3:28:13]
Would there be no cost if we
[3:28:14]
just did distribution instead
[3:28:17]
of taking over transmission
[3:28:17]
lines or the beauty of doing
[3:28:18]
distribution?
[3:28:22]
Not only is we would have no
[3:28:23]
lack of exposure so we have
[3:28:24]
years of delay to to look at
[3:28:27]
this but it's important to know
[3:28:28]
that those electrical workers
[3:28:32]
would be maintaining and
[3:28:33]
operating the system in San
[3:28:33]
Diego.
[3:28:38]
Those costs wouldn't be costs
[3:28:38]
that other cities would bear.
[3:28:42]
We would bear our own cost So
[3:28:43]
it's very much to be negotiated
[3:28:44]
what additional costs we might
[3:28:47]
have to bear as well.
[3:28:48]
Okay.
[3:28:48]
One second.
[3:28:49]
Given that our business manager
[3:28:49]
for these workers here in
[3:28:53]
the room, MR. Ferryman, can I
[3:28:54]
ask you a quick question
[3:28:55]
related to that component of
[3:28:55]
this potential model?
[3:28:59]
What impact on workers could
[3:29:00]
you guys work on all
[3:29:00]
the electrical lines We're
[3:29:03]
going to get some I'm here with
[3:29:03]
Nate.
[3:29:04]
Okay.
[3:29:08]
Thank you for being here.
[3:29:08]
The transmission versus
[3:29:12]
distribution concept here
[3:29:13]
the transmission lines cross
[3:29:14]
municipal boundaries that I
[3:29:18]
understand could open us up to
[3:29:18]
a price We have to pay other
[3:29:19]
municipalities but just a
[3:29:19]
distribution.
[3:29:22]
How many workers of that would
[3:29:23]
it impact that you represent?
[3:29:27]
I would say anywhere from 100
[3:29:28]
to 200 directly but then you're
[3:29:29]
reducing the size of
[3:29:34]
the primary group at as many as
[3:29:35]
your lowering their bargaining
[3:29:37]
strength indirectly about 1800
[3:29:38]
directly about 1 to 200.
[3:29:39]
Okay, understood.
[3:29:43]
So MRS. If we did a
[3:29:47]
distribution model as opposed
[3:29:48]
to taking over any transmission
[3:29:49]
lines, would we still be
[3:29:53]
exposed to those cut off fees
[3:29:58]
or or exit fees please?
[3:29:58]
Absolutely.
[3:29:59]
If you're taking out a portion
[3:30:00]
of our system and a portion of
[3:30:03]
our customers, those costs that
[3:30:04]
are fixed costs are still going
[3:30:05]
to need to be spread across
[3:30:08]
the remaining customers And now
[3:30:09]
you no longer have the city of
[3:30:13]
San Diego as part of that as
[3:30:13]
part of those customers paying
[3:30:14]
for those other costs.
[3:30:15]
So absolutely if you separate
[3:30:18]
the distribution cost out,
[3:30:18]
the remaining customers will
[3:30:19]
still see an increased cost.
[3:30:23]
Okay.
[3:30:24]
Transmission is where sd Genie
[3:30:24]
makes its profit.
[3:30:28]
Correct?
[3:30:29]
I don't understand.
[3:30:33]
So generation of the energy you
[3:30:33]
have to sell it at the value it
[3:30:34]
costs you to do it So there's
[3:30:35]
no profit on the actual
[3:30:37]
creation of it.
[3:30:38]
The profit margin comes from
[3:30:39]
the transmission cost from
[3:30:42]
where it's generated out to
[3:30:42]
the customers, correct?
[3:30:43]
Well, the profit comes from
[3:30:47]
both the distribute and
[3:30:47]
the transmission.
[3:30:47]
Okay.
[3:30:48]
So it's from our infrastructure
[3:30:52]
that we build everything from
[3:30:52]
that batteries, transmission
[3:30:53]
lines, distribution lines It's
[3:30:57]
the entire infrastructure
[3:30:57]
system.
[3:30:58]
Okay.
[3:30:58]
I guess a question as it
[3:30:59]
relates to the economics of
[3:31:06]
this is the transmission
[3:31:07]
crosses multiple cities, maybe
[3:31:08]
even multiple counties, right?
[3:31:08]
Absolutely.
[3:31:08]
Okay.
[3:31:12]
So there's a profit that's
[3:31:12]
built into that component that
[3:31:13]
goes to the entire system.
[3:31:17]
But after it gets to a
[3:31:18]
distribution hub say in Sierra
[3:31:19]
mesa in my district and down to
[3:31:21]
the homes, then there's a
[3:31:21]
different profit component
[3:31:25]
that's part of that correct?
[3:31:25]
Yes.
[3:31:26]
Okay.
[3:31:26]
It's the same concept though.
[3:31:27]
Okay.
[3:31:30]
When the infrastructure is
[3:31:31]
built we are making the profit
[3:31:31]
on building the infrastructure
[3:31:34]
whether it's transmission or
[3:31:35]
distribution.
[3:31:35]
Okay.
[3:31:36]
I guess I'm wondering is why
[3:31:40]
would why would we have to pay
[3:31:41]
an exit fee after the energy
[3:31:41]
already crosses into the city
[3:31:45]
of San Diego to a distribution
[3:31:46]
center And and then so we'd
[3:31:50]
have to pay to la Masons and
[3:31:54]
people from Poway and other
[3:31:55]
cities when it's crossed over
[3:31:56]
the line it's now in the city
[3:31:59]
And then the utility
[3:32:00]
the nonprofit utility would
[3:32:01]
ostensibly take control of it
[3:32:04]
at that point.
[3:32:05]
So Genie would still be making
[3:32:05]
a profit from the transmission
[3:32:09]
And at that point it's not
[3:32:10]
really affecting the Masons and
[3:32:14]
folks from power would it?
[3:32:14]
Right.
[3:32:15]
But there's fixed costs what
[3:32:15]
you just said.
[3:32:16]
Right.
[3:32:18]
Well I'm sorry.
[3:32:18]
Don't catch me.
[3:32:19]
I'll explain it.
[3:32:23]
There are fixed costs across
[3:32:23]
the entire system.
[3:32:24]
Don't build our system
[3:32:24]
including the distribution
[3:32:28]
system.
[3:32:28]
City boundaries only.
[3:32:28]
Okay?
[3:32:29]
You don't say We're building it
[3:32:30]
out for La mesa.
[3:32:33]
Done Now to do another foot in
[3:32:33]
San Diego.
[3:32:37]
So the distribution system also
[3:32:37]
crosses the borders So just
[3:32:38]
cutting it off there's still
[3:32:42]
fixed costs that go both ways
[3:32:43]
And so to serve the system as a
[3:32:46]
whole So you're taking our
[3:32:47]
customers out of the city of
[3:32:48]
San Diego out of the system and
[3:32:52]
there are still fixed costs
[3:32:52]
that will be part of
[3:32:53]
the distribution and
[3:32:53]
transmission system that would
[3:32:56]
then be shouldered by
[3:32:57]
the remaining customers no
[3:32:57]
longer the customers from
[3:33:01]
the city of San Diego.
[3:33:02]
But if a transmission line
[3:33:02]
crosses from some other county
[3:33:06]
or part of the part of
[3:33:06]
the county into our city and
[3:33:07]
we've disassociated from
[3:33:11]
the ecosystem as you're
[3:33:12]
pointing out, it doesn't seem
[3:33:16]
to me that la Masons would pay
[3:33:16]
for any component of it getting
[3:33:17]
to the distribution center and
[3:33:20]
on and we'd be buying
[3:33:21]
the distribution center from
[3:33:22]
you at that point.
[3:33:26]
So are we paying for la Masons
[3:33:30]
and people in power is I see
[3:33:30]
this one here You're nodding
[3:33:31]
your head clear this up for me
[3:33:32]
because it seems to me that
[3:33:35]
once it crosses into our city
[3:33:36]
gets to a place that the public
[3:33:39]
utility would have purchased it
[3:33:40]
I understand the fixed cost
[3:33:40]
component but if we bought it
[3:33:44]
from MR. Genie and it's being
[3:33:45]
owned publicly, why would there
[3:33:49]
be a further fixed cost to it?
[3:33:49]
Okay, so let me come at this
[3:33:50]
slightly differently in
[3:33:51]
the math so that it might be a
[3:33:53]
little clearer.
[3:33:54]
So the first thing to
[3:33:55]
understand is when we talk
[3:33:55]
about distribution assets in
[3:33:58]
the report, those include
[3:33:59]
specifically the vast majority
[3:34:00]
of the distribution sorry
[3:34:01]
the transmission assets that we
[3:34:03]
speak about are the substations
[3:34:04]
and that's the point of step
[3:34:04]
down.
[3:34:08]
Those are often and you want
[3:34:08]
those The reason they're
[3:34:09]
included in the study is
[3:34:13]
because you want them both for
[3:34:13]
the ability to manage
[3:34:14]
the system and then plan for
[3:34:18]
future growth so that
[3:34:19]
the oversimplified solute
[3:34:19]
example I can give here is
[3:34:23]
buying just the distribution
[3:34:23]
system is like buying the pipes
[3:34:24]
but not the pump station for
[3:34:27]
water.
[3:34:28]
So that's kind of the I just
[3:34:29]
want to address kind of
[3:34:29]
the there's a reason that we
[3:34:32]
didn't do a distribution only
[3:34:33]
kind of presentation in
[3:34:33]
the report from the just
[3:34:37]
compensation standpoint.
[3:34:37]
Yes.
[3:34:38]
So we know from the information
[3:34:46]
that's in the report that about
[3:34:46]
10% give or take of
[3:34:50]
the physical assets of any
[3:34:50]
within the city of San Diego
[3:34:51]
are fully depreciated.
[3:34:52]
One of the reasons those cost
[3:34:55]
boundary is are so large
[3:34:56]
compared to phase one is
[3:34:59]
because there's a significantly
[3:35:00]
larger component of the assets
[3:35:01]
that are old And a lot of that
[3:35:05]
is because the vast majority of
[3:35:10]
ratepayer funds in the last 5
[3:35:11]
to 10 years of all of city
[3:35:14]
genius territory have been
[3:35:15]
toward wildfire mitigation
[3:35:19]
that's been approved at the cpc
[3:35:20]
And to Councilmember Von
[3:35:20]
Wilpert point, we have
[3:35:25]
benefited from that as a city
[3:35:25]
but we're also paying for it.
[3:35:26]
>> We are ten and in every
[3:35:29]
other municipalities paying for
[3:35:30]
it.
[3:35:30]
So ten years ago the city of
[3:35:35]
San Diego ratepayers made up
[3:35:35]
approximately 40% of city
[3:35:39]
genies Total revenue Since
[3:35:40]
we've now seen growth in houses
[3:35:40]
and industry etc. In
[3:35:41]
the greater San Diego region
[3:35:43]
we're now down to about 35% of
[3:35:44]
their revenue.
[3:35:48]
So the issue of just
[3:35:49]
compensation in a hypothetical
[3:35:54]
simply says okay you are going
[3:35:58]
to remove 35% of revenue,
[3:36:02]
660,000 customers from
[3:36:02]
the overall territory.
[3:36:07]
>> If you do that that means
[3:36:08]
that and again we don't put
[3:36:11]
this number in the feasibility
[3:36:12]
study because you can kind of
[3:36:13]
pick any number to put in that
[3:36:16]
whatever investments sdg any
[3:36:17]
continues to make from that
[3:36:21]
division from the point of that
[3:36:22]
division are only going to be
[3:36:27]
applied to the rest of excuse
[3:36:27]
me the rest of the system.
[3:36:28]
So right now yes, depending on
[3:36:31]
which year we're talking about
[3:36:31]
City of San Diego ratepayers
[3:36:32]
most of the urban ratepayers
[3:36:35]
frankly not just within
[3:36:35]
the city are subsidizing
[3:36:36]
investment in the physical
[3:36:41]
system outside the city If
[3:36:42]
those physical investments
[3:36:46]
continue to and are seen to be
[3:36:50]
beneficial to the whole area
[3:36:51]
including a new city I mean you
[3:36:52]
then there is a just
[3:36:55]
compensation problem that all
[3:36:56]
of those costs should not be
[3:37:00]
borne by the remaining sdg any
[3:37:01]
ratepayers If there is still
[3:37:05]
benefit out to the new city of
[3:37:06]
San Diego ratepayers And that's
[3:37:06]
the just compensation
[3:37:10]
conversation one and part of
[3:37:11]
the ongoing kind of proceeding
[3:37:15]
with San Francisco and ppg and
[3:37:16]
they have a very different
[3:37:17]
calculation both because of
[3:37:19]
Janie's lack of investment into
[3:37:20]
wildfire and the size of San
[3:37:21]
Francisco as it relates to
[3:37:24]
the larger any system but
[3:37:25]
the exit fee fees is kind of
[3:37:30]
like the cia when the ccr was
[3:37:30]
set up.
[3:37:31]
There are contracts and fixed
[3:37:34]
costs that Guinea pays or has
[3:37:38]
historically paid that the city
[3:37:39]
of San Diego ratepayers still
[3:37:39]
need to cover.
[3:37:43]
If you look back and say Well
[3:37:44]
we've done a whole bunch
[3:37:44]
outside the city you could
[3:37:47]
argue just compensation one way
[3:37:48]
If you say hey all this load
[3:37:49]
growth means that we're going
[3:37:50]
to have to do a whole bunch of
[3:37:53]
investment outside the city
[3:37:53]
boundaries but it benefits
[3:37:54]
the city than just compensation
[3:37:58]
is going to look another way
[3:37:58]
what that range looks like and
[3:37:59]
how the puc even determines
[3:38:03]
the correct way to calculate
[3:38:03]
that is a vastly open question.
[3:38:07]
Okay, So let me just go back to
[3:38:08]
one last material component of
[3:38:12]
this problem.
[3:38:13]
My understanding is if we did a
[3:38:17]
distribution only model that
[3:38:17]
would be the utility, the local
[3:38:21]
public utility that we'd pay a
[3:38:22]
portion of the bill too but we
[3:38:27]
wouldn't stop paying as genie
[3:38:27]
for the transmission component
[3:38:28]
would we Correct.
[3:38:31]
It would be like some type of
[3:38:32]
you would still have to use
[3:38:33]
the transmission system.
[3:38:33]
Yeah, okay.
[3:38:34]
We'd still have to use
[3:38:36]
the transmission system so we'd
[3:38:37]
still be bearing the cost of
[3:38:42]
the entire air transmission
[3:38:42]
system through that portion of
[3:38:45]
a potential hypothetical bill.
[3:38:46]
So why would there be an exit
[3:38:50]
fee if we'd still be paying
[3:38:51]
the transmission bill Because
[3:38:51]
of the fixed cost for
[3:38:55]
the entire distribution system
[3:38:56]
which again doesn't it wasn't
[3:38:56]
built city by city.
[3:39:01]
So even as you disconnect it,
[3:39:02]
our system is built as a
[3:39:05]
unified territory wide south
[3:39:06]
Orange County to the border and
[3:39:10]
there are fixed costs that run
[3:39:10]
through that that would still
[3:39:11]
need to be that are still being
[3:39:15]
paid by our customers.
[3:39:16]
And so if the city was to walk
[3:39:17]
away, those customers are still
[3:39:19]
paying those fixed costs that
[3:39:20]
have already been spent And so
[3:39:21]
the city can't just walk away
[3:39:25]
from those fixed costs across
[3:39:25]
the system.
[3:39:26]
They would still be
[3:39:26]
responsible.
[3:39:29]
That's what the case up in San
[3:39:30]
Francisco said is you have to
[3:39:31]
make the other customers whole
[3:39:31]
And what do you think the fixed
[3:39:34]
costs are We think it's in
[3:39:38]
the billions surely two $7
[3:39:39]
billion That's a huge range
[3:39:39]
somewhere between 4 and $7
[3:39:40]
billion for being very
[3:39:43]
concerned As I say, surely as
[3:39:44]
the investors in that
[3:39:44]
infrastructure you wouldn't
[3:39:48]
know the exact dollar amount
[3:39:48]
that it would cost, right?
[3:39:49]
Yeah.
[3:39:49]
Okay.
[3:39:52]
Can you not give me better than
[3:39:53]
427 six 6 to $8 billion?
[3:39:57]
>> Okay But it's negotiable,
[3:39:57]
right?
[3:39:58]
>> We don't think so.
[3:40:02]
And the cpc did say that it's
[3:40:03]
absolutely part of the court
[3:40:06]
case as Heather just explained
[3:40:07]
,the court will actually
[3:40:07]
determine it.
[3:40:08]
So you know, I don't know
[3:40:12]
exactly what that's going to
[3:40:12]
look like.
[3:40:13]
Yes, it could be some type of
[3:40:16]
settlement but ultimately
[3:40:17]
the court determines what
[3:40:17]
the just compensation would be
[3:40:21]
to the remaining customers So
[3:40:22]
they don't see a 20 to 30% rate
[3:40:22]
increase.
[3:40:22]
Okay.
[3:40:26]
Really quickly, you mentioned
[3:40:26]
that you didn't do an analysis
[3:40:27]
of distribution only model.
[3:40:31]
You said that right just a
[3:40:31]
minute ago.
[3:40:32]
This study doesn't provide its
[3:40:35]
kind of recommendations and
[3:40:36]
determination of feasibility
[3:40:37]
looking at just distribution
[3:40:40]
because it's not recommended
[3:40:41]
for the actual long term health
[3:40:45]
purpose and a capability of any
[3:40:45]
municipal utility.
[3:40:46]
But the other thing but there
[3:40:50]
is that distinction that's got
[3:40:50]
made of you're not talking high
[3:40:51]
voltage crossing line
[3:40:51]
transmissions.
[3:40:55]
We have transmission line is
[3:40:55]
just how big the line is.
[3:40:56]
There's a break point of what's
[3:40:57]
considered a distribution line
[3:41:00]
versus a transmission line.
[3:41:00]
We have transmission lines that
[3:41:01]
run between substations, both
[3:41:03]
of which are within the city.
[3:41:04]
You effectively want to own all
[3:41:05]
of the assets within the city
[3:41:09]
boundary in order to run
[3:41:09]
the system efficiently.
[3:41:10]
Sometimes you got to move power
[3:41:14]
really far and sometimes you
[3:41:15]
you know you can just run it
[3:41:15]
along the distribution lines.
[3:41:16]
That's an excellent point.
[3:41:19]
Power San Diego That's a
[3:41:20]
component that wasn't brought
[3:41:20]
up that I've heard before
[3:41:21]
The fact that within the city
[3:41:24]
you have the transmission lines
[3:41:25]
and if you're looking at if
[3:41:26]
you're suggesting just a
[3:41:29]
distribution only utility, a
[3:41:30]
public utility, how do you get
[3:41:30]
around that internal
[3:41:34]
transmission line?
[3:41:35]
What do you get around that is
[3:41:35]
those transmission and
[3:41:39]
distribution substations become
[3:41:41]
tollbooths.
[3:41:43]
You monitor how much power is
[3:41:44]
flowing off the transmission
[3:41:45]
system You pay for that.
[3:41:48]
We pay it through
[3:41:49]
the transmission access charges
[3:41:50]
and that is how the system
[3:41:53]
works.
[3:41:54]
Again, the first study that new
[3:41:55]
Gen did with distribution only
[3:42:00]
and so it's a choice.
[3:42:03]
Okay, understood.
[3:42:13]
Thank you, MR. CHAIRMAN, Quick
[3:42:14]
question for you.
[3:42:17]
I noticed you mentioned
[3:42:18]
leverage your workers would
[3:42:19]
have in negotiating a deal if a
[3:42:22]
significant proportion were
[3:42:23]
segregated off from the broader
[3:42:27]
body that you represent.
[3:42:28]
How would it materially change
[3:42:32]
the day to day work to have
[3:42:33]
Genie essentially handling
[3:42:36]
certain components that run
[3:42:37]
into the city of San Diego
[3:42:41]
versus a public utility
[3:42:41]
controlling inside the city?
[3:42:42]
I would say it's going to be a
[3:42:46]
substantial impact especially
[3:42:47]
when you start talking about
[3:42:47]
breaking out the transmission
[3:42:51]
and distribution infrastructure
[3:42:52]
As a lineman who worked on
[3:42:53]
these power lines in the city
[3:42:53]
of San Diego for ten years
[3:42:56]
before taking this job, a lot
[3:42:56]
of our transmission
[3:42:57]
infrastructure has distribution
[3:43:00]
under build so it's the same
[3:43:01]
exact pole, right?
[3:43:06]
So if a transmission pole has
[3:43:07]
16 kbps on top 12 gave you
[3:43:09]
under build and then 120 to 40
[3:43:09]
on the bottom and a drunk
[3:43:10]
driver runs into that pole and
[3:43:13]
everything's on the ground.
[3:43:14]
We struggle today having to put
[3:43:14]
up telecommunications lines,
[3:43:18]
having to rely on spectrum
[3:43:19]
at&t, Cox Communications to
[3:43:23]
come out and then we are
[3:43:23]
putting stuff up here Now
[3:43:24]
you're just adding another
[3:43:25]
layer of bureaucracy on who's
[3:43:27]
going to take the transmission.
[3:43:28]
We're going to do
[3:43:29]
the transmission, you're going
[3:43:31]
to do the distribution And then
[3:43:32]
three different telecom
[3:43:32]
telecommunications companies
[3:43:33]
are going to do these other
[3:43:36]
wires As a lineman I'm just
[3:43:37]
trying to get everything off
[3:43:37]
the ground and up safe and
[3:43:38]
power restored.
[3:43:41]
So you're going to add to
[3:43:42]
competing power companies
[3:43:43]
trying to restore service in an
[3:43:43]
emergency?
[3:43:46]
I think it would make it very
[3:43:47]
complicated.
[3:43:47]
Okay.
[3:43:48]
Appreciate that.
[3:43:50]
I'll wrap up my comments.
[3:43:51]
Council PRESIDENT I thank
[3:43:52]
the members of the public for
[3:43:55]
getting into the deep details
[3:43:56]
of just why this is so
[3:43:57]
complicated and being able to
[3:44:00]
stand side by side at
[3:44:01]
the microphone to answer
[3:44:01]
the questions very directly as
[3:44:05]
kind of transparent in fact
[3:44:06]
driven comparison I think
[3:44:06]
the public expects when we're
[3:44:09]
dealing with multibillion
[3:44:10]
dollar decisions and being able
[3:44:15]
to hear immediately what one
[3:44:15]
organization says and being
[3:44:19]
able to rebut it or supplement
[3:44:20]
it and ultimately hearing from
[3:44:20]
the workers about how that
[3:44:21]
impacts their lives.
[3:44:25]
I know we have another item
[3:44:25]
into a one where I'll have some
[3:44:29]
further comments but at the end
[3:44:30]
of the day I think that
[3:44:30]
the well I'll say my comments
[3:44:34]
about the 8% profit coming up
[3:44:35]
in a second.
[3:44:36]
Thank you Council PRESIDENT And
[3:44:39]
thank you to members of
[3:44:40]
the public for caring so much
[3:44:41]
about driving rates down for
[3:44:41]
electricity in San Diego.
[3:44:42]
All right.
[3:44:44]
Thank you.
[3:44:45]
And to member Campo, this is an
[3:44:46]
information item.
[3:44:47]
We have a lot more work to do
[3:44:51]
today but nevertheless
[3:44:52]
Councilmember Bond, welcome
[3:44:52]
one.
[3:44:52]
One more point.
[3:44:53]
First of all, the way that we
[3:44:54]
can lower bills today is by
[3:44:56]
making less profit for
[3:44:57]
shareholders.
[3:45:02]
Today any argument that we need
[3:45:02]
to get rid of the public
[3:45:03]
purpose programs in the state
[3:45:06]
but the mandates in our bills
[3:45:07]
is ridiculous.
[3:45:07]
You want us to take away
[3:45:08]
the low income assistance
[3:45:11]
program and state bills.
[3:45:12]
You want to take away
[3:45:13]
the wildfire safety mandates?
[3:45:13]
These are the state
[3:45:16]
requirements in the bills that
[3:45:16]
we pay.
[3:45:17]
That is ridiculous.
[3:45:18]
It should be said you need
[3:45:21]
shareholder profits that are
[3:45:22]
lower today to lower our bills,
[3:45:22]
not lowering help for low
[3:45:23]
income people And it shouldn't
[3:45:25]
be on the backs of cities to do
[3:45:26]
that.
[3:45:26]
Second, we already pay We
[3:45:30]
the city of San Diego already
[3:45:31]
pay for infrastructure we don't
[3:45:32]
use for city And I'm now
[3:45:32]
reading about the Golden
[3:45:36]
Pacific Power Line project that
[3:45:36]
could go entirely around
[3:45:37]
the city of San Diego.
[3:45:39]
Yet our ratepayers might have
[3:45:40]
to pay for it.
[3:45:41]
So I'm glad you're having a lot
[3:45:45]
of stakeholder engagement but
[3:45:46]
you need to engage the citizens
[3:45:46]
of City of San Diego who could
[3:45:47]
be paying for this.
[3:45:49]
And second of all you should be
[3:45:50]
doing more than just virtual
[3:45:51]
open houses.
[3:45:51]
If you're going to run this
[3:45:54]
through an unnatural state park
[3:45:55]
like Rego Springs, go to
[3:45:55]
Brigham Springs, talk to
[3:45:59]
the people in the communities
[3:45:59]
in in person about this before
[3:46:00]
you go to a natural preserve.
[3:46:00]
Thank you.
[3:46:03]
Council PRESIDENT.
[3:46:04]
All right.
[3:46:04]
Thank you.
[3:46:05]
So not seeing anybody else on
[3:46:09]
the lights.
[3:46:09]
This is an information item.
[3:46:10]
No motions required.
[3:46:13]
Thank you to Brittany, Nate
[3:46:14]
Bell and whoever else got in
[3:46:18]
the hot seat And we're willing
[3:46:19]
to take the questions from
[3:46:20]
the council members going
[3:46:20]
forward.
[3:46:21]
There was a lot of ground
[3:46:21]
covered.
[3:46:23]
There was a lot of ground not
[3:46:24]
covered for this discussion
[3:46:25]
because we weren't setting this
[3:46:28]
up for an action today because
[3:46:29]
there are still so many things.
[3:46:32]
But I'll reiterate what
[3:46:33]
the report said that it is
[3:46:37]
feasibly feasible from an
[3:46:38]
economic point of view and it's
[3:46:39]
feasible from a technical point
[3:46:39]
of view.
[3:46:40]
A lot more work would have to
[3:46:42]
be done And so you kind of
[3:46:43]
tried to summarize Heather and
[3:46:43]
I appreciate that.
[3:46:46]
So with that we will close item
[3:46:47]
200.
[3:46:47]
Again, thank you to everyone
[3:46:51]
and Deputy Clerk please
[3:46:55]
introduce item 201 Thank you
[3:46:56]
Council PRESIDENT Item 2a1 sdg
[3:46:59]
any franchise independent audit
[3:47:00]
report and Franchise Compliance
[3:47:04]
Review Committee report 2023
[3:47:32]
through 2025 Thank you for All
[3:47:33]
right As you start to settle in
[3:47:34]
introduce yourselves for
[3:47:38]
the record and let us know how
[3:47:38]
much time we need.
[3:47:39]
>> Hello.
[3:47:39]
Thank you.
[3:47:40]
Council PRESIDENT My name is
[3:47:40]
Matt.
[3:47:43]
We are We'll try to keep under
[3:47:43]
20 minutes for That's for both
[3:47:44]
for the entire reading.
[3:47:44]
Okay.
[3:47:46]
Thank you.
[3:47:46]
>> Thank you.
[3:47:47]
My name is Megan Long, program
[3:47:51]
manager and department of
[3:47:51]
General Services.
[3:47:52]
I'm joined today by Eric Cohen,
[3:47:56]
Aaron Cohen and Eric Niland
[3:47:57]
from Crow Cody Human And to
[3:47:58]
tell me about Marshall Zeigler
[3:47:59]
from our franchise Compliance
[3:48:00]
Review committee today we'll be
[3:48:01]
presenting to you the results
[3:48:02]
of our second two year
[3:48:05]
compliance period of the Genie
[3:48:06]
franchise which will include a
[3:48:06]
presentation from our
[3:48:07]
independent auditor as well as
[3:48:10]
our presentation from
[3:48:10]
the Franchise Compliance Review
[3:48:11]
Committee.
[3:48:15]
By way of background in JULY of
[3:48:15]
2021 the Council passed two
[3:48:16]
ordinances that awarded the gas
[3:48:20]
and electric franchises to San
[3:48:21]
Diego Gas and Electric
[3:48:21]
the franchise with a ten year
[3:48:24]
term with an automatic renewal
[3:48:24]
for a second ten years unless
[3:48:25]
there's action taken by council
[3:48:26]
as additional level of
[3:48:29]
oversight.
[3:48:30]
The franchise required two
[3:48:30]
things First, the city is
[3:48:31]
required to retain a third
[3:48:34]
party independent auditor every
[3:48:35]
two years to perform an audit
[3:48:36]
of each unit compliance with
[3:48:37]
the franchise.
[3:48:38]
And second, the franchise
[3:48:38]
requires the city to establish
[3:48:39]
the Franchise Compliance Review
[3:48:42]
Committee also known as the f
[3:48:42]
crc, a citizens committee
[3:48:43]
comprised of two mayoral
[3:48:46]
appointments and three council
[3:48:46]
appointments.
[3:48:47]
The icrc is charged with
[3:48:48]
receiving the independent
[3:48:50]
Auditors report and providing
[3:48:51]
its own report to Council with
[3:48:52]
a recommendation on
[3:48:54]
the automatic renewal on
[3:48:55]
the second ten year term.
[3:48:55]
Both of those reports will be
[3:48:59]
presented today in JULY of 2024
[3:48:59]
we presented a similar item for
[3:49:00]
the first two year review
[3:49:04]
period and at the same meeting
[3:49:04]
council passed a resolution to
[3:49:07]
establish the second frc to
[3:49:08]
review the second compliance
[3:49:09]
period which covers JULY 8th
[3:49:11]
2023 to JULY 7th of 2025.
[3:49:12]
I would like to take a moment
[3:49:13]
to thank the volunteer
[3:49:18]
committee members Matt Brennan,
[3:49:18]
Lydia Latimore, Cody Human So
[3:49:21]
tell me about Flagler and Corey
[3:49:22]
All right.
[3:49:22]
For their time and dedication
[3:49:26]
to this committee in regards to
[3:49:27]
the independent auditor in
[3:49:27]
OCTOBER of 2022 city staff
[3:49:31]
released an rfp for
[3:49:31]
the independent auditor and
[3:49:32]
after a competitive process
[3:49:33]
Crowell lp was elected as
[3:49:36]
the vendor cro will present
[3:49:37]
their audit findings for
[3:49:38]
the first two three for
[3:49:39]
the second two year Crowe
[3:49:40]
presented their audit findings
[3:49:43]
for the first two year
[3:49:43]
franchise period as part of
[3:49:44]
the hearing in JULY of 2024 and
[3:49:48]
the city chose to exercise its
[3:49:48]
option to extend Crowe's
[3:49:49]
contract for the second two
[3:49:53]
year compliance period.
[3:49:53]
I have with me today
[3:49:54]
representatives from the Crowe
[3:49:55]
team who will go into more
[3:49:55]
detail about their audit
[3:49:58]
procedures and findings in a
[3:49:58]
few minutes.
[3:49:59]
But at a high level the audit
[3:50:02]
covers the second two year of
[3:50:02]
the franchise scuse me
[3:50:03]
the second two years of
[3:50:05]
the franchise and includes
[3:50:06]
the financial, operational and
[3:50:07]
cooperative requirements under
[3:50:07]
the franchise ordinances and
[3:50:10]
their supporting documents
[3:50:11]
which include
[3:50:11]
the administrative mou,
[3:50:12]
the undergrounding mou and
[3:50:12]
the Energy Cooperation
[3:50:15]
Agreement.
[3:50:16]
At this point I will pass it
[3:50:17]
over to our independent under
[3:50:18]
Crowe who will provide an
[3:50:18]
overview of the audit findings
[3:50:23]
and recommendations.
[3:50:23]
Thank you Megan.
[3:50:24]
Next slide we'll go through
[3:50:28]
some brief introductions.
[3:50:28]
We'll talk about audit scope
[3:50:29]
and procedure and then our
[3:50:33]
findings and recommendations.
[3:50:33]
So next slide My name is Eric
[3:50:34]
Niland.
[3:50:35]
I'm a director with Crowe and
[3:50:38]
with me I have Erin Cohen who's
[3:50:39]
a senior manager with Crowe.
[3:50:40]
We don't have Burt with us but
[3:50:42]
he was the engagement partner
[3:50:47]
on this project.
[3:50:47]
>> I'll turn to Aaron to talk
[3:50:48]
about the scope here.
[3:50:52]
Thank you Eric So scope of
[3:50:52]
the audit was an independent
[3:50:53]
audit of Genie's gas and
[3:50:56]
electric franchise agreements
[3:50:57]
And as Megan mentioned the two
[3:51:00]
year period was JULY 8th, 2023
[3:51:01]
through JULY 7th, 2025.
[3:51:05]
The audit covered Genie's
[3:51:06]
performance and complying with
[3:51:07]
the franchise agreements
[3:51:10]
Administrative mou, the utility
[3:51:10]
underwriting mou and the Energy
[3:51:11]
Cooperation agreement
[3:51:15]
associated with the franchises
[3:51:15]
Now our audit procedures
[3:51:16]
included conducting interviews
[3:51:20]
with Jenny and city staff.
[3:51:20]
We spoke with city staff
[3:51:21]
including finance, operational
[3:51:25]
and oversight personnel and
[3:51:25]
spoke with many city
[3:51:26]
departments the Development
[3:51:29]
Services Department and an
[3:51:30]
engineering and capital
[3:51:30]
projects utilities
[3:51:31]
undergrounding program and city
[3:51:31]
management.
[3:51:34]
We reviewed and documented
[3:51:35]
requirements of each agreement.
[3:51:39]
We submitted multiple data
[3:51:40]
requests to City Jenny and
[3:51:40]
the city.
[3:51:41]
These data requests were
[3:51:41]
requested for relevant
[3:51:44]
requirements for each of
[3:51:45]
the agreements for franchise
[3:51:45]
fees We obtained and reviewed
[3:51:49]
Genie Annual franchise fee
[3:51:49]
calculation documents,
[3:51:50]
quarterly franchise fee
[3:51:53]
statements, processed
[3:51:54]
documentation controls
[3:51:55]
information They are aging
[3:51:58]
reports, bad debt expense
[3:51:59]
support and collection
[3:52:00]
procedures and documentation of
[3:52:07]
payment to the city Exide For
[3:52:07]
the administrative mou we
[3:52:10]
selected a sample of 13
[3:52:11]
projects to audit project
[3:52:12]
specific requirements things
[3:52:16]
like permitting inspections or
[3:52:16]
collaboration.
[3:52:17]
We also reviewed supporting
[3:52:20]
documentation for what we're
[3:52:21]
calling non project specific
[3:52:21]
requirements.
[3:52:22]
This is information sharing
[3:52:25]
protocols or communication
[3:52:26]
between Genie and the city.
[3:52:26]
Similarly for the utility
[3:52:30]
undergrounding mou we selected
[3:52:31]
eight in-process projects to
[3:52:32]
audit requirements that were
[3:52:35]
project specific and then
[3:52:36]
review review supporting
[3:52:37]
documentation for non project
[3:52:40]
specific requirements for
[3:52:40]
the Energy Cooperation
[3:52:41]
Agreement We reviewed
[3:52:42]
supporting documentation for
[3:52:48]
each requirement.
[3:52:49]
>> Now the results of these
[3:52:49]
tests indicated that we met
[3:52:50]
the four audit objectives in
[3:52:53]
all significant respects for
[3:52:53]
the audit period.
[3:52:54]
However we did include two
[3:52:54]
audit findings that were deemed
[3:52:58]
not to be significant
[3:52:58]
significant to the objectives
[3:52:59]
but warranted inclusion in
[3:53:03]
the report.
[3:53:04]
>> And now I'm going to turn it
[3:53:04]
to Eric to walk through
[3:53:05]
the findings.
[3:53:08]
You know, so the first of these
[3:53:08]
findings has to do with
[3:53:09]
compliance with
[3:53:11]
the undergrounding mou And
[3:53:12]
there were several sections of
[3:53:13]
the mou that we found
[3:53:17]
noncompliance and and they're
[3:53:18]
listed here on this slide and
[3:53:21]
I'll review those with you for
[3:53:22]
the first of those are six 11.2
[3:53:27]
for a project titled block b r
[3:53:30]
a r c g You do not complete
[3:53:31]
internal processes on time
[3:53:32]
which caused a delay in
[3:53:35]
assigning and inspector to
[3:53:36]
the project and that's Palm
[3:53:36]
City.
[3:53:40]
Edgar Highlands project.
[3:53:41]
Secondly, sd g did not provide
[3:53:45]
a written schedule of days and
[3:53:46]
hours in which the c an
[3:53:49]
inspector would be available to
[3:53:50]
a project titled Blockade r sd
[3:53:54]
g ultimately was not able to
[3:53:55]
provide an inspector at
[3:53:56]
the time of that construction
[3:53:56]
as a consequence.
[3:54:00]
So in section 743g did not
[3:54:04]
comply by providing a
[3:54:04]
construction baseline which
[3:54:09]
includes both an estimate of
[3:54:09]
cost and a schedule for
[3:54:10]
trenching conduit work for
[3:54:14]
the project titled 2bb job two
[3:54:14]
That's a crown point one.
[3:54:17]
And finally in section 834cg
[3:54:22]
has not submitted detailed 90%
[3:54:22]
design estimates in
[3:54:23]
the supporting documentation
[3:54:27]
for invoices Did not clearly
[3:54:28]
differentiate projects that
[3:54:28]
have reached the 90% completion
[3:54:32]
threshold as required by
[3:54:32]
the franchise.
[3:54:33]
So we have a number of
[3:54:33]
recommendations to address
[3:54:36]
these these misses so to speak.
[3:54:37]
The first is to establish
[3:54:41]
stronger project management
[3:54:41]
controls by developing
[3:54:42]
standardized timelines and
[3:54:46]
checklists.
[3:54:46]
Secondly, to assign a dedicated
[3:54:47]
compliance liaison or project
[3:54:51]
coordinator within cdg and to
[3:54:51]
limit these misses.
[3:54:55]
Third, to revise invoicing
[3:54:55]
backup materials to more
[3:54:59]
clearly distinguish that 90%
[3:54:59]
design estimate.
[3:55:00]
Fourth to establish regular
[3:55:04]
joint review meetings with city
[3:55:04]
staff They've started doing
[3:55:05]
those and are doing more of
[3:55:09]
them As a consequence of this
[3:55:10]
trained personnel and mou
[3:55:14]
requirements by reinforcing
[3:55:14]
compliance standards And
[3:55:15]
finally link compliance to
[3:55:19]
performance metrics or
[3:55:19]
oversight reviews.
[3:55:20]
So those are recommendations
[3:55:21]
that are addressed first.
[3:55:23]
The first findings second
[3:55:24]
finding on the next slide has
[3:55:28]
to do with the admin mou
[3:55:34]
section ten point b of that mou
[3:55:35]
as you need to not schedule
[3:55:36]
pre-construction meeting with
[3:55:39]
the city as required as
[3:55:40]
Eugenie's Field crews
[3:55:41]
incorrectly assumed that was a
[3:55:43]
classic Category one project
[3:55:43]
winner which would not have
[3:55:44]
required this pre-construction
[3:55:47]
meeting and the project was
[3:55:48]
actually a Category two
[3:55:48]
project.
[3:55:49]
So there's a couple of things
[3:55:52]
that I can do to strengthen and
[3:55:53]
you know, respond accordingly.
[3:55:56]
First by just project project
[3:56:01]
classification work and review
[3:56:02]
processes so that this doesn't
[3:56:02]
happen again.
[3:56:03]
Developing a project checklist
[3:56:03]
to be reviewed by
[3:56:06]
the supervisor before
[3:56:07]
construction begins.
[3:56:08]
And perhaps most important to
[3:56:08]
train field crews and project
[3:56:12]
managers to clearly
[3:56:13]
differentiate between these two
[3:56:13]
category types.
[3:56:16]
So those are the two findings
[3:56:20]
the status of findings from
[3:56:20]
the first phase of the audit
[3:56:21]
and I'll go through those
[3:56:21]
briefly here.
[3:56:25]
There were four findings last
[3:56:26]
Two of these have been
[3:56:26]
remediating remediated.
[3:56:29]
Those are three and four.
[3:56:29]
Number three was remediated
[3:56:30]
because it's no longer a
[3:56:34]
compliance requirement And
[3:56:35]
the new admin mou number four
[3:56:35]
was remediated because
[3:56:39]
the finding related to a paint
[3:56:40]
plant completion timing which
[3:56:41]
they met although they delayed
[3:56:45]
in meeting and getting that
[3:56:45]
done both the city and in
[3:56:46]
the study ultimately got
[3:56:49]
the plan completed So it wasn't
[3:56:50]
a compliance matter in this
[3:56:50]
phase.
[3:56:55]
The other two relate to number
[3:56:56]
one they're inconsistent
[3:56:56]
undergrounding project cost
[3:56:57]
estimates.
[3:57:00]
And so this is sort of a to be
[3:57:01]
determined going forward.
[3:57:05]
In the past there were some
[3:57:06]
inconsistencies in the overhead
[3:57:06]
allocations to the cost
[3:57:07]
estimates and they've cleaned
[3:57:11]
those up to some degree.
[3:57:12]
But going forward I think
[3:57:12]
there's still as they get into
[3:57:16]
more construction projects
[3:57:16]
there's still a need to
[3:57:17]
reinforce consistent project
[3:57:21]
cost estimates There.
[3:57:22]
The second one is just in terms
[3:57:23]
of collaborating between
[3:57:27]
the city and sd Junior on
[3:57:27]
the mou for certain contracted
[3:57:32]
services, the Mhsaa hasn't been
[3:57:32]
solicited again So to
[3:57:33]
the degree that when that
[3:57:38]
happens there more coordination
[3:57:39]
between the city and sga and on
[3:57:40]
that is merited So we didn't
[3:57:42]
say that's remediated but it's
[3:57:43]
pending the next cycle of
[3:57:43]
the mhsaa.
[3:57:44]
So with that I will turn it
[3:57:50]
back to the Council for
[3:57:50]
questions.
[3:57:51]
At this time I would have to
[3:57:51]
revert to our franchise
[3:57:57]
compliance review committee.
[3:57:57]
Hi everybody.
[3:57:58]
Thank you.
[3:57:58]
My name is Cody Hoven.
[3:57:59]
I'm the chair of your franchise
[3:58:02]
Compliance Review committee.
[3:58:03]
Nice to be back in the seat I
[3:58:03]
think.
[3:58:04]
And here with the Tell me about
[3:58:07]
Siegler the vice chair of
[3:58:08]
the committee.
[3:58:08]
We're going to split up this
[3:58:09]
portion of the presentation.
[3:58:12]
Thanks.
[3:58:13]
So just to remind you
[3:58:14]
the purpose of Franchise
[3:58:18]
Compliance Review Committee was
[3:58:19]
it was assigned a very narrow
[3:58:20]
scope per the franchise
[3:58:24]
agreement and it's formed as
[3:58:25]
you see here every two years to
[3:58:26]
review franchise compliance and
[3:58:30]
recommend to the city council
[3:58:31]
whether the franchise should be
[3:58:31]
renewed for a secondary term.
[3:58:32]
So we're a function of
[3:58:36]
the Brown Act compliant
[3:58:36]
Committee and comply with all
[3:58:37]
of the rules of the Brown Act
[3:58:41]
in our meetings.
[3:58:42]
Additionally, our
[3:58:42]
responsibilities include
[3:58:43]
reviewing and discuss
[3:58:47]
discussing the franchise audit
[3:58:47]
what you just heard in
[3:58:52]
collaboration with the auditor
[3:58:53]
and preparing a comprehensive
[3:58:53]
written report for you all
[3:58:59]
which we provided And I quickly
[3:59:00]
went quickly through these and
[3:59:01]
then making a formal
[3:59:04]
recommendation to City Council
[3:59:05]
regarding whether to approve
[3:59:05]
automatic renewal of
[3:59:08]
the franchise for a secondary
[3:59:14]
ten year term.
[3:59:20]
Next on the committee found
[3:59:21]
that Junior demonstrated
[3:59:22]
overall compliance with all
[3:59:26]
four agreements The electric
[3:59:27]
and gas franchise agreements,
[3:59:27]
the administrative mou or
[3:59:28]
the utility utility
[3:59:28]
undergrounding mou and
[3:59:32]
the energy Cooperation
[3:59:32]
Agreement.
[3:59:33]
The audit identified only a few
[3:59:34]
minor issues mostly related to
[3:59:38]
documentation scheduling or
[3:59:39]
classification.
[3:59:39]
These were isolated and
[3:59:40]
technically and with no
[3:59:44]
evidence of systemic problems
[3:59:45]
financial harm or governance
[3:59:45]
breakdowns.
[3:59:46]
The committee recommends that
[3:59:50]
routine monitoring or franchise
[3:59:51]
compliance continue with a
[3:59:52]
focus on clarifying
[3:59:52]
expectations, standardizing
[3:59:56]
documentation and reinforcing
[3:59:57]
early coordination between
[3:59:58]
F.D.A. And city departments for
[4:00:01]
the administrative mou This
[4:00:02]
means strengthening internal
[4:00:03]
controls and aligning
[4:00:03]
renegotiate renegotiation
[4:00:07]
timelines with the committees
[4:00:08]
review cycle.
[4:00:08]
Right now there's a timing
[4:00:09]
mismatch mismatch between when
[4:00:14]
the agreements can be
[4:00:14]
renegotiated and when
[4:00:15]
the committee is actually doing
[4:00:15]
its review.
[4:00:16]
That means the committee's
[4:00:20]
input MAY come too late to
[4:00:21]
meaningful meaningfully
[4:00:21]
influence the process.
[4:00:22]
What we're proposing is to
[4:00:26]
better align those timelines so
[4:00:27]
when the renegotiation
[4:00:27]
opportunities arise they
[4:00:28]
coincide with the committee's
[4:00:33]
review cycle allowing their
[4:00:33]
work to directly inform city
[4:00:34]
decisions for
[4:00:34]
the undergrounding mou.
[4:00:35]
The committee recommends
[4:00:39]
providing detailed cost
[4:00:39]
breakdowns and establishing a
[4:00:40]
regular review mechanism.
[4:00:41]
Those costs are often shown as
[4:00:46]
big lump sums and not broken
[4:00:46]
into enough detail.
[4:00:47]
So you know x is for labor wise
[4:00:51]
for overhead, for construction.
[4:00:51]
Right now it's like getting a
[4:00:52]
restaurant bill that just says
[4:00:53]
a total of $200 with no
[4:00:57]
itemized itemization.
[4:00:57]
The committee is recommending
[4:00:58]
an itemized receipt and regular
[4:00:59]
check ins to make sure
[4:01:02]
everything looks reasonable for
[4:01:03]
the Energy Cooperation
[4:01:03]
Agreement.
[4:01:04]
The committee suggests setting
[4:01:05]
realistic timelines,
[4:01:08]
maintaining energy efficient
[4:01:09]
program commitments, improving
[4:01:09]
reporting and expanding public
[4:01:10]
engagement opportunities.
[4:01:14]
Next slide please.
[4:01:15]
While complaints are strong,
[4:01:16]
the committee noted several
[4:01:16]
areas where the processes could
[4:01:17]
be improved.
[4:01:20]
These include ensuring
[4:01:21]
pre-construction meetings are
[4:01:22]
consistently held clarifying
[4:01:22]
documentation practices,
[4:01:27]
increasing transparency and
[4:01:27]
project cost enhancing tracking
[4:01:28]
and reporting under the Energy
[4:01:29]
Cooperation Agreement and
[4:01:32]
creating additional
[4:01:33]
opportunities for public
[4:01:34]
engagement before agreements or
[4:01:34]
modifications are executed.
[4:01:39]
Next slide please.
[4:01:39]
The committee recommends
[4:01:40]
continuing to monitor prior
[4:01:41]
audit needs to ensure progress
[4:01:44]
is sustained.
[4:01:45]
Recognizing that some issues
[4:01:46]
require ongoing management
[4:01:46]
rather than one time fixes, it
[4:01:51]
also suggest creating plain
[4:01:52]
language summaries of all
[4:01:52]
agreements to help both
[4:01:53]
the committee and the public
[4:01:58]
understand the purpose process
[4:01:58]
and the timelines.
[4:01:59]
Renegotiation timelines once
[4:02:04]
again should be aligned should
[4:02:04]
align with biennial review
[4:02:05]
cycle to improve public
[4:02:06]
engagement and the Committee
[4:02:10]
should have access to draft
[4:02:10]
audit findings for early
[4:02:11]
review.
[4:02:11]
Oversight shouldn't just focus
[4:02:12]
on compliance though We also
[4:02:15]
need to look at financial
[4:02:16]
impacts and how these
[4:02:17]
agreements affect the community
[4:02:17]
creating structured
[4:02:18]
opportunities for Republican
[4:02:22]
input along with more
[4:02:23]
standardized reporting across
[4:02:23]
all franchise agreements would
[4:02:24]
improve transparency and make
[4:02:28]
it easier for the council and
[4:02:28]
the public to review and
[4:02:29]
understand what's happening
[4:02:33]
next Like this.
[4:02:34]
The committee observed that not
[4:02:34]
all franchise activities carry
[4:02:35]
the same level of risk or
[4:02:39]
public concern.
[4:02:40]
So oversight should focus on
[4:02:40]
areas of greatest impact For
[4:02:44]
example routine administrative
[4:02:45]
updates like minor contract
[4:02:46]
amendments or reporting changes
[4:02:46]
don't typically have major
[4:02:51]
community impacts and can be
[4:02:51]
reviewed more quickly.
[4:02:52]
But decisions involving
[4:02:53]
undergrounding projects rate
[4:02:57]
impacts or long term renewal
[4:02:58]
terms have significant
[4:02:59]
financial and public
[4:03:03]
implications So those should be
[4:03:03]
should receive deeper scrutiny
[4:03:04]
and more detailed oversight.
[4:03:05]
Some prior audit findings like
[4:03:09]
undergrounding cost variability
[4:03:10]
have improved while others
[4:03:11]
require ongoing management.
[4:03:15]
In this case continuous
[4:03:16]
improvement rather than
[4:03:16]
the complete absence of issues
[4:03:17]
is is a reasonable but
[4:03:21]
reasonable benchmark.
[4:03:22]
To strengthen oversight,
[4:03:23]
the committee recommends
[4:03:23]
establishing successful
[4:03:27]
criteria beyond compliance for
[4:03:28]
example instead of only
[4:03:28]
confirming compliance.
[4:03:33]
We would also look at look at
[4:03:33]
outcomes like whether
[4:03:34]
the project stayed on budget or
[4:03:34]
were delivered on schedule.
[4:03:39]
Sharing all public comments So
[4:03:40]
feedback from residents is
[4:03:40]
fully visible throughout
[4:03:44]
the process not just summarized
[4:03:45]
Expanding structured public
[4:03:45]
input early in the agreement
[4:03:50]
process for instance holding
[4:03:51]
engagement sessions before key
[4:03:51]
terms are finalized not after
[4:03:52]
decision decisions are largely
[4:03:56]
set.
[4:03:57]
Enhancing audit scope for cost
[4:03:57]
drivers.
[4:03:58]
So instead of just seeing total
[4:04:03]
project costs we can clearly
[4:04:04]
see the breakdowns you know
[4:04:04]
like earlier and itemized
[4:04:08]
receipt and standardizing
[4:04:08]
reporting across all franchise
[4:04:09]
agreements to improve
[4:04:10]
transparency, consistency and
[4:04:12]
accessibility for the committee
[4:04:13]
,city council and the public
[4:04:19]
in general.
[4:04:20]
And so consider our
[4:04:20]
recommendations a bigger
[4:04:21]
picture.
[4:04:25]
We based on the information we
[4:04:26]
had in front of us and barring
[4:04:27]
any other decisions you all
[4:04:27]
might make.
[4:04:29]
The committee recommended
[4:04:30]
allowing the franchise to renew
[4:04:36]
with conditions.
[4:04:37]
So this Conditional Renewal
[4:04:37]
Council decision per our
[4:04:41]
recommendation should consider
[4:04:42]
both individual agreements and
[4:04:42]
among others as well as
[4:04:43]
the overall structure and long
[4:04:44]
term impact of the franchise.
[4:04:49]
So our recommendation for
[4:04:49]
renewals conditioned on
[4:04:50]
aligning renegotiation
[4:04:51]
timelines to ensure meaningful
[4:04:54]
public and council input before
[4:04:55]
agreements are finalized.
[4:04:55]
So we talked about some of our
[4:05:00]
key compliance.
[4:05:00]
i think the key findings as a
[4:05:01]
student is generally compliant
[4:05:02]
based on the scope of the audit
[4:05:06]
question posed with only minor
[4:05:06]
issues noted in the audit.
[4:05:07]
Underground costs are high and
[4:05:08]
overhead transparency could
[4:05:08]
improve.
[4:05:12]
And previous concerns have been
[4:05:12]
mostly addressed But climate
[4:05:13]
action progress has been
[4:05:19]
limited and public input was
[4:05:19]
considered in our meetings as
[4:05:20]
well.
[4:05:20]
And the three new one would
[4:05:22]
preserve flexibility for future
[4:05:29]
options like mineralization.
[4:05:29]
This conditional renewal is
[4:05:30]
the approach our committee
[4:05:35]
recommended because it supports
[4:05:36]
both San Diego ratepayers and
[4:05:37]
the city's broader policy
[4:05:37]
objectives.
[4:05:41]
But I would like to underscore
[4:05:42]
that it is important to
[4:05:43]
recognize that simply meeting
[4:05:44]
the terms of these agreements
[4:05:48]
the compliance alone doesn't
[4:05:48]
fully address the bigger
[4:05:49]
concerns of how you define
[4:05:50]
success As a lot of discussion
[4:05:53]
you've heard today.
[4:05:54]
Things like affordability,
[4:05:55]
potential rate impacts or how
[4:05:55]
these agreements align with
[4:05:56]
the city's long term energy and
[4:06:00]
climate goals.
[4:06:00]
This is why renewal is
[4:06:01]
ultimately a policy decision to
[4:06:02]
city council balancing
[4:06:03]
compliance with public value
[4:06:09]
and long term priorities.
[4:06:09]
>> Thank you.
[4:06:10]
We're happy to take any
[4:06:11]
questions I think.
[4:06:11]
All right.
[4:06:11]
Thank you for
[4:06:12]
the presentations.
[4:06:15]
Special shout out to Cody Soto
[4:06:16]
me and everybody on
[4:06:17]
the franchise compliance
[4:06:21]
agreement the volunteers.
[4:06:22]
You've got some fans out there
[4:06:22]
and all the work to do that.
[4:06:27]
So with that please proceed
[4:06:27]
with public comment.
[4:06:28]
Thank you.
[4:06:33]
Council PRESIDENT.
[4:06:33]
This item received one comment
[4:06:34]
in favor and one comment in
[4:06:35]
opposition via our e comment
[4:06:38]
form which had been distributed
[4:06:39]
to the Council.
[4:06:39]
We will begin with in-person
[4:06:40]
comment allegedly Audra please
[4:06:41]
come forward You'll have one
[4:06:47]
minute to speak or serve.
[4:06:54]
Feels like we're as de genies
[4:06:55]
really And it's just
[4:07:00]
interesting to have them here
[4:07:01]
and talking about like how much
[4:07:05]
is it really going to cost and
[4:07:06]
it's like 4 to 7 billion and
[4:07:07]
then it's like be honest and
[4:07:10]
it's like okay, 6 to 8.
[4:07:10]
So interesting how we just let
[4:07:11]
this go on and as long as we
[4:07:15]
make sure they're compliant
[4:07:16]
with these agreements But no
[4:07:20]
wonder why the cost is high for
[4:07:21]
undergrounding because they
[4:07:22]
make profit off of this
[4:07:22]
infrastructure.
[4:07:23]
And so I'm wondering if you're
[4:07:27]
conditional renewal can be like
[4:07:28]
any kind of profit you make you
[4:07:33]
give it to us or half of it so
[4:07:33]
that the people can start
[4:07:34]
getting their money back.
[4:07:35]
It's like I don't understand
[4:07:38]
why we just kind of bend over
[4:07:39]
and allow them to do these
[4:07:39]
things.
[4:07:40]
It's like you know it's
[4:07:40]
happening.
[4:07:41]
You know why their cost is high
[4:07:45]
and why they're profiting.
[4:07:46]
But yeah, we just continue to
[4:07:46]
let it happen.
[4:07:47]
How about you guys take some of
[4:07:47]
that back?
[4:07:51]
I mean you're the ones with
[4:07:52]
the agreements that should get
[4:07:52]
off the top.
[4:07:57]
>> Thank you, Blair Beckman And
[4:07:58]
while Blair comes to
[4:07:59]
the microphone, could we have
[4:08:04]
Anthony Ralphs or Seldon?
[4:08:05]
Yeah and Bob because these Can
[4:08:06]
you please come to the front
[4:08:09]
row?
[4:08:10]
Hi, we're Beekman.
[4:08:10]
Thanks for the report.
[4:08:15]
Thanks for the words on working
[4:08:15]
on undergrounding issues that
[4:08:20]
needs to be better specified.
[4:08:21]
I was trying to specify
[4:08:22]
previously that if we're going
[4:08:22]
to do undergrounding things
[4:08:26]
there is little neighborhoods
[4:08:27]
that have undergrounding you
[4:08:27]
know, funding sources and we
[4:08:32]
can consider that as a
[4:08:33]
municipality process.
[4:08:34]
I want to make that more clear.
[4:08:38]
Thank you for the ideas of
[4:08:38]
oversight.
[4:08:39]
Um yeah.
[4:08:39]
Basically what I was saying was
[4:08:44]
that we don't have to fully
[4:08:44]
rely on municipality.
[4:08:45]
We can rely on San Diego
[4:08:46]
community energy itself and
[4:08:50]
nothing in this capacity Those
[4:08:50]
are options.
[4:08:51]
Thank you for the oversight
[4:08:56]
process that you've offered
[4:08:56]
overall to do The big items on
[4:09:01]
public projects is good also to
[4:09:02]
offer you know what are
[4:09:03]
the little administrative
[4:09:03]
signatures Where's a little
[4:09:08]
space for that that can be
[4:09:08]
available to the public as
[4:09:09]
well?
[4:09:09]
I think that can be helpful and
[4:09:10]
important.
[4:09:10]
Thank you.
[4:09:10]
Thank you.
[4:09:13]
Thank you.
[4:09:14]
>> Anthony Ralphs followed by
[4:09:19]
Laurie Saldana City Council.
[4:09:19]
>> Thank you for
[4:09:25]
the presentation by the Audit
[4:09:25]
group.
[4:09:26]
I took a couple of notes on
[4:09:27]
the things that I heard.
[4:09:27]
I heard number one that they
[4:09:28]
didn't finished undergrounding
[4:09:32]
on time, that they didn't have
[4:09:32]
standardized timelines and that
[4:09:33]
the construction baseline for
[4:09:37]
cost and schedule are rather
[4:09:37]
that they didn't schedule
[4:09:38]
pre-construction meetings.
[4:09:38]
These are just the ways in
[4:09:42]
which you need $1 billion
[4:09:43]
profit in company every year
[4:09:44]
has been out of compliance just
[4:09:44]
some of the ways in which
[4:09:48]
they've been out of compliance
[4:09:49]
that I heard that I got to take
[4:09:50]
notes on which it was hard to
[4:09:50]
do because the representatives
[4:09:55]
from sd g are so loud and
[4:09:55]
they're talking right now when
[4:09:56]
I'm trying to give
[4:09:56]
the presentation and one of
[4:09:57]
them is eating your popcorn so
[4:10:01]
incredibly loudly that it's
[4:10:02]
really difficult for me and
[4:10:02]
it's really difficult for
[4:10:03]
the public to have trust in me
[4:10:06]
when they're talking in
[4:10:07]
the middle of someone giving a
[4:10:08]
presentation on how they're out
[4:10:08]
of compliance and eating so
[4:10:12]
loud that I can't even write
[4:10:12]
down the notes as to all
[4:10:13]
the ways in which they're out
[4:10:14]
of compliance yet they're
[4:10:17]
making $1 billion a year and
[4:10:18]
they're asking for their
[4:10:18]
franchise board renewal.
[4:10:19]
>> Thank you does conclude your
[4:10:23]
time.
[4:10:24]
Lori Saldana followed by Vikas
[4:10:28]
Whiskey Thank you.
[4:10:29]
So ultimately I think we need
[4:10:29]
to say is this meeting
[4:10:35]
the needs of utility rate
[4:10:36]
payers And there are many
[4:10:36]
things here that if you're
[4:10:37]
committed to improve customer
[4:10:41]
service they were delays.
[4:10:41]
We have a domino effect of
[4:10:42]
missed deadlines and other
[4:10:47]
things that delay the outcomes
[4:10:48]
So what are the consequences
[4:10:48]
for this?
[4:10:49]
That's my question When if you
[4:10:53]
do a customer service survey
[4:10:53]
and you find out that they're
[4:10:54]
not meeting the needs of your
[4:10:55]
customers, what are
[4:10:59]
the consequences?
[4:11:00]
What do you change?
[4:11:00]
And I think that's been missing
[4:11:01]
from these reports for the last
[4:11:05]
few cycles Are the meeting
[4:11:06]
formats available for people to
[4:11:07]
participate are accessible to
[4:11:07]
the public The ones that I
[4:11:11]
happen to have in the middle of
[4:11:11]
the day when most people are
[4:11:12]
not able to participate I think
[4:11:13]
that's problematic.
[4:11:17]
So in general talking about
[4:11:18]
undergrounding my family has
[4:11:23]
had the same house for 60 years
[4:11:23]
we've been paying into
[4:11:24]
undergrounding is delay, delay,
[4:11:24]
delay.
[4:11:31]
So what are the consequences
[4:11:32]
for delaying basic customer
[4:11:32]
service?
[4:11:33]
You know, there appeared to be
[4:11:34]
nothing but because it's been
[4:11:38]
followed by promises I'm not
[4:11:45]
deeply informed on this issue
[4:11:46]
and I'm mostly sympathetic to
[4:11:47]
ratepayers But it's my
[4:11:51]
understanding from city and
[4:11:51]
union representatives that they
[4:11:52]
are operating on their own land
[4:11:57]
or land that they have leased
[4:11:57]
or from their own funds over
[4:12:02]
many years Now that doesn't
[4:12:03]
mean that the city shouldn't
[4:12:04]
take a role in ensuring that
[4:12:08]
citizens are treated fairly.
[4:12:09]
You should but I find it
[4:12:15]
inexplicable that here you are
[4:12:15]
investigating and reporting and
[4:12:20]
auditing what sd, g and e does
[4:12:21]
as a private business on mostly
[4:12:22]
their own land.
[4:12:26]
While you have refused to do
[4:12:27]
any investigation or auditing
[4:12:32]
of a private business or
[4:12:33]
operating on our public
[4:12:34]
parkland at the Torrey Pines
[4:12:39]
Glider port, can any of you
[4:12:40]
explain that inconsistency?
[4:12:41]
>> Thank you.
[4:12:42]
That does conclude your time.
[4:12:55]
Says I thank you so much both
[4:12:56]
to the auditors and
[4:12:57]
the Franchise Compliance Review
[4:12:57]
Committee for spending the time
[4:13:01]
to evaluate our work Under
[4:13:01]
the franchise agreements we
[4:13:02]
knowledge of the independent
[4:13:06]
auditor for the second year or
[4:13:06]
the second time found no
[4:13:07]
significant findings or
[4:13:08]
deficiencies relating to
[4:13:12]
performance on the franchise
[4:13:12]
and related agreements.
[4:13:13]
This reflects our commitment to
[4:13:14]
meetings and to meeting
[4:13:17]
the several hundred
[4:13:17]
requirements under each of
[4:13:18]
these ancillary franchise
[4:13:18]
agreements.
[4:13:19]
Of course we know we always
[4:13:23]
have to improve.
[4:13:24]
We'll continue to work on our
[4:13:25]
processes and we take that
[4:13:25]
responsibility seriously.
[4:13:29]
We'd also like to recognize
[4:13:30]
the Franchise Compliance Review
[4:13:31]
Committee for the time and care
[4:13:31]
they dedicated to this process
[4:13:35]
After their extensive review
[4:13:35]
including presentations from
[4:13:36]
subject matter experts
[4:13:41]
including the cpa and other
[4:13:42]
stakeholders in the community.
[4:13:42]
Your evaluation of our
[4:13:43]
performance and your
[4:13:44]
consideration of all the public
[4:13:47]
input.
[4:13:48]
Importantly, the committee
[4:13:49]
found that we demonstrated
[4:13:49]
overall compliance with
[4:13:50]
the electric and gas franchise
[4:13:54]
agreements as well as an mou.
[4:13:55]
Thank you very much.
[4:13:55]
All of you.
[4:13:56]
Thank you.
[4:14:00]
That concludes in-person public
[4:14:01]
comment.
[4:14:01]
We will now go to virtual
[4:14:02]
public comment.
[4:14:05]
I've started the five minute
[4:14:06]
timer in council chambers and
[4:14:06]
we will turn to the virtual
[4:14:11]
queue in which there are
[4:14:12]
currently three participants
[4:14:12]
requesting to speak.
[4:14:13]
We'll begin with John Stott.
[4:14:16]
Please begin.
[4:14:24]
>> Wow.
[4:14:25]
Did they get it a a p a c, a d
[4:14:28]
or an f?
[4:14:29]
Can't tell you No.
[4:14:30]
For $1 billion company you'd
[4:14:34]
expect an a-plus.
[4:14:35]
Second thing that's missing
[4:14:41]
here is how much did the city
[4:14:42]
or residents of the city of San
[4:14:47]
Diego have to pay in litigation
[4:14:48]
with f, c, g and e?
[4:14:52]
How much damages did they do on
[4:14:58]
the undergrounding You know, in
[4:14:59]
the valuation that we had
[4:15:00]
before the undergrounding Seems
[4:15:04]
like we have to pay three times
[4:15:05]
for the same undergrounding.
[4:15:05]
And for the lawyers there
[4:15:10]
amongst you the law fixtures
[4:15:11]
should apply.
[4:15:15]
This is not like San Francisco
[4:15:16]
in any way.
[4:15:16]
San Francisco is a takeover.
[4:15:21]
Ours would be an end of a
[4:15:22]
franchise or at least that we
[4:15:23]
get the law for next year.
[4:15:23]
>> Thank you.
[4:15:27]
Thank you.
[4:15:27]
All right.
[4:15:28]
Our next speaker is John Lear.
[4:15:32]
Please begin.
[4:15:33]
>> Good afternoon.
[4:15:34]
This has been a long one.
[4:15:39]
I just really wish I could get
[4:15:40]
a contract where when I screw
[4:15:40]
up with a major installation
[4:15:44]
like a nuclear power plant I
[4:15:45]
get to build the customers for
[4:15:45]
it.
[4:15:46]
I don't even begin to
[4:15:49]
understand this cost plus
[4:15:50]
billing that we live under.
[4:15:51]
I will tell you this Six months
[4:15:55]
ago I had solar installed on
[4:15:55]
the on the unit that I live in.
[4:15:56]
Unfortunately I've not been
[4:15:57]
able to take advantage of it
[4:16:01]
until the last two months.
[4:16:02]
But I will say this I generate
[4:16:03]
twice as about twice the amount
[4:16:07]
of power that I need in this
[4:16:07]
household on that solar.
[4:16:13]
So the rest of it goes back to
[4:16:13]
my neighbors and the people
[4:16:14]
around me.
[4:16:14]
Unfortunately I'm not able to
[4:16:17]
take advantage of the benefit
[4:16:18]
of the reduced billing because
[4:16:23]
for 3 or 4 months as the genie
[4:16:24]
could get people out to inspect
[4:16:27]
and approve and turn it on
[4:16:28]
which is just outrageous.
[4:16:28]
Anyway, get solar, get away
[4:16:34]
from the grid and get rid as
[4:16:34]
the genie.
[4:16:34]
>> Thank you.
[4:16:35]
Thank you.
[4:16:39]
Our next speaker is caller with
[4:16:40]
the last four digits 8700.
[4:16:44]
Please begin.
[4:16:51]
>> Thank you, Joy.
[4:16:51]
It's turn.
[4:16:56]
I don't support the renewal of
[4:16:56]
the fda and the franchise
[4:16:57]
agreement.
[4:17:01]
My reasons are mostly in
[4:17:05]
the last paragraph of
[4:17:06]
the PowerPoint entitled
[4:17:06]
Conclusion and I quote
[4:17:11]
Conditional renewal supports
[4:17:12]
rate payers in the city's
[4:17:16]
objectives.
[4:17:17]
At the same time, complaints
[4:17:18]
alone doesn't solve concerns
[4:17:22]
about affordability rates or
[4:17:22]
long term value.
[4:17:27]
Ultimately the Council must
[4:17:27]
weigh both technical
[4:17:28]
performance in broader public
[4:17:33]
benefit in deciding whether to
[4:17:34]
renew Dear Council.
[4:17:38]
Dear Mayor do not renew It does
[4:17:39]
not support repairs.
[4:17:44]
It does not support the city
[4:17:44]
objectives.
[4:17:45]
We all know that.
[4:17:49]
So let's be bold.
[4:17:50]
Let's have the courage to say
[4:17:50]
no.
[4:17:50]
Thank you.
[4:17:53]
That concludes your time This
[4:17:54]
morning.
[4:17:54]
Thank you.
[4:17:55]
Thank you.
[4:17:59]
That concludes public testimony
[4:17:59]
on item 201.
[4:18:00]
>> All right.
[4:18:01]
Thank you, Deputy Clerk.
[4:18:04]
With that this is an
[4:18:05]
information item and no motions
[4:18:05]
required.
[4:18:08]
I'll turn it over to council
[4:18:08]
members and jump in if nobody
[4:18:13]
else wants to.
[4:18:14]
So I will jump in.
[4:18:15]
Again, thank you to the members
[4:18:19]
of the franchise compliance
[4:18:19]
agreement.
[4:18:20]
I mean it's committee excuse
[4:18:20]
me.
[4:18:21]
It's an interesting animal that
[4:18:24]
we've created and we appreciate
[4:18:24]
your two year stint.
[4:18:25]
You know, if I can make a pitch
[4:18:27]
for you to come back and do
[4:18:28]
another two years.
[4:18:29]
i would be remiss if I did not
[4:18:32]
do that.
[4:18:33]
I want to speak to some of
[4:18:33]
the things that were raised by
[4:18:37]
the public.
[4:18:38]
We have new faces doing utility
[4:18:39]
undergrounding and our
[4:18:43]
transportation department and
[4:18:43]
they've done some serious
[4:18:47]
changes to that that when we do
[4:18:48]
the next two year review I
[4:18:49]
don't think we're going to see
[4:18:53]
those same problems because
[4:18:53]
they've gotten much more
[4:18:54]
aggressive not only with Genie
[4:18:57]
but also with at&t and
[4:18:58]
Spectrum,
[4:18:58]
the telecommunications that
[4:19:02]
also have aboveground lines.
[4:19:03]
So I'm it didn't surprise me
[4:19:07]
that there were some instances
[4:19:08]
where there were problems going
[4:19:13]
forward But new crew internally
[4:19:14]
the city is doing a fantastic
[4:19:14]
job.
[4:19:18]
So I don't think we'll see it
[4:19:18]
in the next audit We go
[4:19:19]
forward.
[4:19:23]
And to MR. Kozinski or Bob
[4:19:23]
because I always pronounce your
[4:19:27]
name wrong I did reach out to
[4:19:28]
the city auditor to actually
[4:19:29]
look into the latter part.
[4:19:32]
You think I don't do anything?
[4:19:32]
And the city auditor reported
[4:19:36]
that they have heard these
[4:19:37]
allegations multiple times and
[4:19:37]
quote Our investigations
[4:19:42]
determined that the allegations
[4:19:42]
of fraud, waste and abuse were
[4:19:43]
unsubstantiated and that
[4:19:47]
the qualification requirements
[4:19:48]
for him claiming that the clerk
[4:19:48]
report were reasonable.
[4:19:51]
That comes from our independent
[4:19:51]
city auditor.
[4:19:52]
Take that for what it's worth.
[4:19:55]
But again thank you to
[4:19:56]
the auditors for the good work
[4:19:57]
that you do under the franchise
[4:20:01]
agreement.
[4:20:02]
Thank you again for the good
[4:20:02]
work that you do.
[4:20:03]
And then again the volunteers
[4:20:06]
who stepped up for
[4:20:07]
the committee very much
[4:20:07]
appreciate it.
[4:20:08]
With that we will go to council
[4:20:10]
member Eli Rivera.
[4:20:11]
>> All right.
[4:20:11]
Thank you.
[4:20:12]
Council PRESIDENT I just wanna
[4:20:15]
say thank you.
[4:20:16]
It's a ton of time and effort
[4:20:17]
that goes into this volunteer
[4:20:20]
work that you do and it is
[4:20:21]
important and is one of
[4:20:24]
the things that distinguishes
[4:20:25]
the way that we've approached
[4:20:30]
our our relationship ship with
[4:20:30]
Jeannie um and with this
[4:20:31]
franchise agreement in
[4:20:35]
comparison to what had been
[4:20:35]
done in the past.
[4:20:36]
I think that that positions us
[4:20:39]
better for the future and I'm
[4:20:40]
very grateful for the work that
[4:20:40]
you do to help us do that.
[4:20:41]
>> Thank you.
[4:20:41]
Council PRESIDENT.
[4:20:44]
All right.
[4:20:44]
Thank you.
[4:20:45]
Council Yellow Rivera Not
[4:20:45]
seeing anybody else in
[4:20:46]
the lights.
[4:20:49]
I will close this item up And
[4:20:50]
again thank you for the good
[4:20:52]
work and your patience on a
[4:20:57]
long afternoon.
[4:21:01]
Okay.
[4:21:02]
And with that deputy clerk
[4:21:05]
please introduce item 203 Thank
[4:21:09]
you, Council PRESIDENT Item 2
[4:21:10]
or 3 approval of a Fifth
[4:21:11]
Amendment to the agreement with
[4:21:14]
Path of San Diego for
[4:21:14]
the Coordinated Street Outreach
[4:21:15]
Program.
[4:21:15]
>> All right.
[4:21:19]
Thank you for that.
[4:21:20]
This is a Fifth Amendment to an
[4:21:21]
agreement.
[4:21:21]
It's a little bit of a holdover
[4:21:24]
Would you guys be okay with
[4:21:25]
waiving the presentation given
[4:21:28]
that this is the Fifth
[4:21:28]
Amendment?
[4:21:33]
All right, So settle yourselves
[4:21:34]
in and Deputy clerk proceed
[4:21:40]
with public comment on item 203
[4:21:41]
Thank you.
[4:21:42]
Council PRESIDENT We will begin
[4:21:46]
with an in-person comment
[4:21:46]
allegedly Order a please come
[4:21:47]
forward.
[4:21:59]
You'll have one minute to speak
[4:22:00]
And again you guys want to get
[4:22:01]
out of here.
[4:22:02]
But again the presentations
[4:22:03]
aren't for you guys.
[4:22:04]
It's also for the people.
[4:22:05]
All right.
[4:22:08]
So this is interesting because
[4:22:09]
you know, homelessness is
[4:22:13]
running rampant though It's
[4:22:14]
good for business when it is
[4:22:15]
it's fantastic.
[4:22:18]
There's so much money to be
[4:22:19]
made off of these people And
[4:22:20]
I'm wondering how good are they
[4:22:23]
doing if just right outside
[4:22:24]
the doors here there's homeless
[4:22:28]
people sleeping every night.
[4:22:29]
So I mean is that money well
[4:22:33]
spent And when there is no, you
[4:22:34]
know, path to another shelter
[4:22:38]
or you know, some kind of home
[4:22:39]
for like a hamster wheel and we
[4:22:42]
just keep going around.
[4:22:43]
It's like let's give more money
[4:22:44]
and maybe that will help fix
[4:22:44]
it.
[4:22:47]
No, we don't have anywhere for
[4:22:47]
them to go But we have these
[4:22:48]
people out there just telling
[4:22:52]
people, you know, that there's
[4:22:53]
nowhere for them to go but then
[4:22:54]
we're going to arrest them or
[4:22:57]
take their stuff, you know,
[4:22:58]
because they're out there.
[4:22:59]
So it seems like it's working
[4:22:59]
out.
[4:23:02]
Maybe you guys could get some
[4:23:03]
more money and throw it at it.
[4:23:03]
>> Thank you.
[4:23:06]
That concludes your time.
[4:23:07]
Our next speaker is Blair
[4:23:08]
Beekman followed by Anthony
[4:23:11]
Ralphs.
[4:23:12]
Hi, we're Beekman.
[4:23:16]
I'm filling improving today I
[4:23:17]
guess my my knowledge and depth
[4:23:21]
of community issues is pretty
[4:23:25]
feeble but gosh darn it this is
[4:23:26]
an item that I think really
[4:23:27]
needs a public presentation.
[4:23:32]
I'm the work that does for our
[4:23:35]
unhoused has been incredible
[4:23:35]
especially in the past few
[4:23:35]
years.
[4:23:36]
They've proven how much they
[4:23:39]
can house people and we don't
[4:23:40]
just talk about shelters we can
[4:23:41]
actually be talking about
[4:23:41]
housing issues.
[4:23:44]
I really ask the council to if
[4:23:45]
they can you know, be asking
[4:23:49]
questions after public
[4:23:50]
presentation and that they can
[4:23:50]
still make their presentation
[4:23:54]
that would be great too.
[4:23:54]
It's really important to be
[4:23:58]
hearing this item and I'm
[4:23:59]
really surprised we're avoiding
[4:24:02]
it out of efficiency and to get
[4:24:07]
home early.
[4:24:08]
This is an important step.
[4:24:09]
I hope we make this step more
[4:24:11]
open and clear in our public
[4:24:11]
future.
[4:24:12]
>> Thank you.
[4:24:18]
Anthony Ralphs Good afternoon
[4:24:23]
City Council Excuse me I
[4:24:23]
support the approval of
[4:24:24]
the Fifth Amendment to
[4:24:28]
the agreement with the path San
[4:24:28]
Diego Program for
[4:24:29]
the Coordinated Street Outreach
[4:24:32]
Program.
[4:24:33]
At a time when we've seen so
[4:24:34]
many of our homeless programs
[4:24:37]
and outreach programs cut
[4:24:38]
particularly the Alpha project
[4:24:42]
particularly I believe it was I
[4:24:46]
forget the good the good center
[4:24:47]
I'm blanking on the full name
[4:24:47]
of it.
[4:24:48]
But anyway we've had so many
[4:24:51]
homeless programs cut and this
[4:24:52]
is a matter of public safety
[4:24:53]
and I know how quick all are to
[4:24:56]
defend public safety.
[4:24:57]
So I would expect that we could
[4:25:01]
have that same approach with
[4:25:02]
our homeless, that same
[4:25:03]
compassion and empathy and that
[4:25:06]
these programs can pan out and
[4:25:07]
help the people that they are
[4:25:07]
intended to serve.
[4:25:10]
Thank you.
[4:25:11]
Thank you.
[4:25:15]
That concludes in-person public
[4:25:16]
comment.
[4:25:16]
I've started the five minute
[4:25:17]
timer and council chambers.
[4:25:20]
We will now turn to the virtual
[4:25:21]
queue in which there are
[4:25:22]
currently three participants
[4:25:25]
requesting to speak.
[4:25:29]
We will begin with color with
[4:25:30]
the last four digits 8700
[4:25:39]
Please begin and thank you Joy
[4:25:40]
Senator Yes I support this item
[4:25:44]
passed.
[4:25:45]
It is absolutely fabulous.
[4:25:45]
I don't have personal
[4:25:49]
experience with them but I had
[4:25:50]
a wonderful experience with
[4:25:50]
the homeless couple years ago
[4:25:54]
when I moved here and I
[4:25:54]
followed their experience with
[4:25:58]
past and how they helped them
[4:25:59]
and it was very beautiful.
[4:26:03]
The only concern I have for
[4:26:04]
Path it seems like a few years
[4:26:05]
ago they were having trouble
[4:26:08]
with really paying their people
[4:26:09]
enough to work and perhaps they
[4:26:12]
were having trouble filling
[4:26:13]
positions that could have been
[4:26:14]
corrected And I MAY be way off
[4:26:17]
base on that but that just
[4:26:18]
popped up when I thought about
[4:26:19]
what I was going to say.
[4:26:23]
So love path just support them
[4:26:23]
wherever we can and love you
[4:26:28]
Path for what you do for
[4:26:29]
the homeless and that affects
[4:26:31]
all of San Diego Love to all
[4:26:32]
Thank you.
[4:26:32]
Next is Natalie Roski.
[4:26:36]
Please begin.
[4:26:37]
>> Hi Natalie.
[4:26:42]
Rush here District seven.
[4:26:42]
So I've been doing some
[4:26:43]
research and I'm really getting
[4:26:47]
good at my research I think so
[4:26:47]
I'm kind of confused on what
[4:26:51]
I'm researching and what this
[4:26:52]
path San Diego Fifth Amendment
[4:26:56]
means because it's telling me
[4:27:00]
that the resolution before it
[4:27:01]
describes this routine one year
[4:27:04]
extension flat funding at 13.6
[4:27:05]
million and change.
[4:27:05]
But there's an underlining
[4:27:09]
amendment does something that
[4:27:10]
the resolution never mentions
[4:27:11]
It adds a new clause
[4:27:15]
acknowledge is that h m c.
[4:27:16]
S and c I e the data systems
[4:27:19]
used to track and house
[4:27:20]
residents are some surveillance
[4:27:24]
technology under the trust
[4:27:24]
ordinance.
[4:27:29]
So moving forward and improving
[4:27:29]
are these systems being used
[4:27:33]
currently?
[4:27:34]
Is there understanding
[4:27:38]
the grace period and is this
[4:27:39]
being acknowledged or is this
[4:27:43]
was known about is it
[4:27:44]
the question?
[4:27:44]
Thank you.
[4:27:48]
That does conclude your time.
[4:27:49]
Next speaker is John Leah.
[4:27:52]
Please begin.
[4:27:53]
Good afternoon.
[4:27:57]
Council members.
[4:27:58]
It's been a long one but I did
[4:27:59]
want to make time to update you
[4:28:03]
that I actually that
[4:28:04]
the individual that came out
[4:28:06]
front of city Council in my rv
[4:28:07]
for a period of time I'm not
[4:28:12]
sure where ultimately that
[4:28:12]
situation is resolved but I
[4:28:13]
will tell you that we've run
[4:28:16]
into these cases all the time.
[4:28:17]
I love that they're an amazing
[4:28:17]
provider.
[4:28:22]
We have had nothing but a high
[4:28:22]
regard for much of their
[4:28:23]
service.
[4:28:23]
So this is not necessarily
[4:28:26]
related to path but we do not
[4:28:27]
have a mechanism for people who
[4:28:30]
are struggling and falling
[4:28:31]
through the cracks to raise
[4:28:32]
their hand and go Hey, what's
[4:28:35]
going on?
[4:28:36]
And I don't think that we are
[4:28:37]
capturing the number of people
[4:28:40]
that are returning to our
[4:28:44]
system effectively because
[4:28:45]
after two years if you come
[4:28:46]
back into the system are hmas
[4:28:49]
recognize here is a brand new
[4:28:49]
person anyway we need to be
[4:28:53]
listening to our customers.
[4:28:53]
We're still not and I would
[4:28:54]
hope that we could take that
[4:28:54]
seriously.
[4:28:57]
Thank you.
[4:28:58]
Thank you.
[4:28:58]
That does conclude public
[4:29:03]
comment on item 203.
[4:29:03]
All right.
[4:29:04]
Thank you, Deputy Clerk.
[4:29:07]
This is an item for discussion
[4:29:08]
and we will need a motion.
[4:29:11]
So we'll turn over first to
[4:29:12]
Council member Whipper Thank
[4:29:15]
you Council PRESIDENT I will
[4:29:16]
make the motion to approve
[4:29:17]
the staff recommendation.
[4:29:21]
This presentation is online.
[4:29:21]
Both the PowerPoint and
[4:29:25]
the staff report are on line
[4:29:26]
for everybody to access and
[4:29:27]
they've been online for
[4:29:30]
everybody to access for several
[4:29:31]
days now.
[4:29:35]
This does not add more money to
[4:29:36]
the contract.
[4:29:40]
It extends the term of
[4:29:41]
the contract.
[4:29:41]
These response teams that I
[4:29:45]
have has out there assess
[4:29:46]
people who are experiencing
[4:29:50]
homelessness and have helped
[4:29:51]
hundreds of people not just get
[4:29:55]
into emergency shelters but
[4:29:56]
also into housing both
[4:30:00]
temporary and permanent
[4:30:00]
housing.
[4:30:01]
And that's very important
[4:30:01]
because I am deeply concerned
[4:30:05]
about the unavailability of
[4:30:05]
emergency shelter.
[4:30:10]
We need more shelter beds to be
[4:30:14]
available to people.
[4:30:15]
But the good news is that path
[4:30:19]
is also directing people to
[4:30:20]
housing And as long as we're
[4:30:24]
getting people off the streets
[4:30:25]
and directly into housing,
[4:30:26]
that's a good thing.
[4:30:26]
One of the most important
[4:30:29]
things we could be doing and I
[4:30:29]
will approve move the staff
[4:30:30]
recommendation.
[4:30:34]
All right.
[4:30:34]
Thank you, sir.
[4:30:35]
So we have a motion by council
[4:30:36]
member Whipper and we'll go
[4:30:36]
next to Council PRESIDENT Pro
[4:30:39]
Tem Lee.
[4:30:39]
Thank you Council PRESIDENT And
[4:30:40]
thank you to path for their
[4:30:41]
continued work as well.
[4:30:43]
I'll second this motion.
[4:30:44]
>> All right so we have a
[4:30:45]
motion by Councilmember Whipper
[4:30:46]
and a second by Council
[4:30:47]
PRESIDENT Pro Tem Lee to move
[4:30:47]
the staff recommendation.
[4:30:51]
I see Council member John
[4:30:52]
Wolpert sup Thank you very much
[4:30:55]
and thank you for all the work
[4:30:56]
that path does as well.
[4:30:57]
I appreciate it.
[4:30:57]
I know that does increase
[4:31:01]
the amount of the contract but
[4:31:02]
it is the Fifth Amendment.
[4:31:02]
So are we thinking about doing
[4:31:03]
another rfp at some point or a
[4:31:05]
new scope of services or what's
[4:31:06]
the plan?
[4:31:06]
We released the rfp in APRIL of
[4:31:10]
this year so we intend to
[4:31:11]
fulfill the awardees of the rfp
[4:31:15]
in this next fiscal year and
[4:31:16]
that will then supersede this
[4:31:16]
contract.
[4:31:17]
Okay.
[4:31:17]
All right.
[4:31:20]
Thank you very much.
[4:31:21]
And Sara, could you introduce
[4:31:22]
yourself for the record since
[4:31:22]
you did a response?
[4:31:23]
Sorry.
[4:31:25]
Third Dorman, director of
[4:31:26]
Homelessness Strategies and
[4:31:26]
Solutions Deanna would be very
[4:31:27]
mad at me if I didn't get that
[4:31:30]
done All right, I I don't see
[4:31:31]
anybody else in the light.
[4:31:32]
I'll just add my Thank you for
[4:31:36]
managing that And to the folks
[4:31:38]
at path we have a motion by
[4:31:39]
Councilmember Lipper and a
[4:31:39]
second by Council PRESIDENT Pro
[4:31:40]
Tem Lee to move the staff
[4:31:43]
recommendation please call
[4:31:44]
the roll Deputy Clerk I have
[4:31:44]
set up the voting system.
[4:31:57]
Please cast your vote.
[4:32:01]
The item passes unanimously
[4:32:02]
with District two and District
[4:32:02]
eight absent.
[4:32:02]
>> All right.
[4:32:06]
And for meeting management
[4:32:06]
the reason we did that was to
[4:32:07]
make sure that we have a quorum
[4:32:11]
when it comes to not agenda
[4:32:11]
public comment at the end.
[4:32:12]
So for those that might
[4:32:15]
participate remotely stay
[4:32:15]
tuned.
[4:32:16]
We MAY or MAY not have a quorum
[4:32:21]
to have remote not a agenda
[4:32:21]
public comment We will
[4:32:22]
definitely do it for in-person
[4:32:25]
non agenda Public comment
[4:32:26]
meeting Management All right
[4:32:30]
Deputy Clerk please introduce
[4:32:34]
item 202 Thank you Council
[4:32:34]
PRESIDENT Item 2o2
[4:32:35]
Establishment of a cannabis
[4:32:38]
Delivery Services business
[4:32:39]
permit and enhanced commercial
[4:32:43]
cannabis enforcement mechanisms
[4:32:44]
All right.
[4:32:45]
I believe this is coming from
[4:32:45]
district seven.
[4:32:48]
So Councilmember Camp here do
[4:32:49]
you want to have some opening
[4:32:49]
remarks?
[4:32:50]
Thank you.
[4:32:50]
Counsel turn it over to your
[4:32:51]
staff.
[4:32:51]
Yes.
[4:32:52]
Council PRESIDENT, thank you
[4:32:53]
very much for that.
[4:32:54]
And before we begin with
[4:32:54]
the staff presentation, I'd
[4:32:55]
like to take a moment to
[4:32:57]
recognize the amount of work
[4:32:58]
that's gone in today's action
[4:32:59]
over the past two years not
[4:32:59]
only from my office but from
[4:33:02]
the mayor's office and cannabis
[4:33:03]
workers and businesses, members
[4:33:03]
of the public who've engaged
[4:33:07]
with us throughout this
[4:33:07]
process.
[4:33:08]
Cannabis delivery is a complex
[4:33:11]
policy issue and the item we
[4:33:11]
are putting forward for
[4:33:12]
consideration today is one that
[4:33:13]
puts accountability, safety and
[4:33:17]
workers first.
[4:33:17]
So with that I'll turn over to
[4:33:18]
Summer Patten, Deputy director
[4:33:21]
of policy for my office for
[4:33:22]
the presentation.
[4:33:22]
>> Thank you.
[4:33:23]
i need ten minutes for
[4:33:26]
the presentation when you're
[4:33:26]
ready.
[4:33:27]
>> Good afternoon.
[4:33:27]
Council PRESIDENT Lacob and
[4:33:31]
council members I'm presenting
[4:33:32]
here today on behalf of
[4:33:32]
Councilmember Campo
[4:33:33]
the establishment of a cannabis
[4:33:35]
delivery services business
[4:33:36]
permit and enhanced commercial
[4:33:40]
cannabis enforcement mechanisms
[4:33:41]
>> The proposed actions today
[4:33:45]
are to establish a cannabis
[4:33:46]
delivery business permit
[4:33:46]
category for commercial
[4:33:49]
cannabis operators entering
[4:33:50]
the city of San Diego to
[4:33:51]
conduct cannabis delivery.
[4:33:55]
I'm sorry, can you hold on?
[4:33:56]
We're not displaying.
[4:33:56]
There we go.
[4:33:56]
Okay.
[4:33:57]
Very nice.
[4:33:57]
My apologies for
[4:33:59]
the interruption.
[4:34:00]
Go ahead.
[4:34:00]
Good.
[4:34:01]
So that's the first action.
[4:34:03]
The second is to establish a
[4:34:04]
private right of action to
[4:34:05]
allow eligible entities to
[4:34:08]
pursue step one enforcement
[4:34:09]
against operators that violate
[4:34:09]
local commercial cannabis
[4:34:10]
regulations.
[4:34:13]
And third is to revise
[4:34:14]
penalties for noncompliance to
[4:34:17]
a maximum of $20,000 per day
[4:34:18]
for court imposed civil
[4:34:21]
penalties and $20,000 per
[4:34:21]
violation for administratively
[4:34:26]
imposed civil penalties not to
[4:34:26]
exceed $500,000 per parcel or
[4:34:30]
business and up to 10,000 per
[4:34:31]
violation for administrative
[4:34:32]
abatement penalties not to
[4:34:35]
exceed 500,000 per parcel or
[4:34:36]
structure.
[4:34:40]
And before we discuss
[4:34:40]
the proposed changes, it's
[4:34:41]
helpful to review the licensing
[4:34:42]
system around commercial
[4:34:44]
cannabis.
[4:34:45]
Cannabis in California is
[4:34:46]
regulated on a dual track
[4:34:49]
system meaning that cannabis is
[4:34:50]
regulated both by the state and
[4:34:54]
by a businesses, city or county
[4:34:55]
And at the state level there
[4:34:55]
are two types of retail
[4:34:56]
licenses.
[4:34:59]
There is a non storefront
[4:34:59]
retailer or delivery only
[4:35:00]
business which is what we're
[4:35:01]
talking about today.
[4:35:03]
And there are storefront
[4:35:04]
retailers or brick and mortar
[4:35:08]
businesses.
[4:35:09]
And while state law allows
[4:35:09]
cannabis delivery on public
[4:35:12]
roads, state law also
[4:35:13]
explicitly states that local
[4:35:14]
jurisdictions have authority to
[4:35:17]
regulate cannabis businesses
[4:35:18]
including through business
[4:35:18]
license requirements.
[4:35:19]
Cities and counties can
[4:35:22]
prohibit cannabis of all
[4:35:23]
business types some or
[4:35:27]
implement their own regulations
[4:35:28]
And as shown on the map, this
[4:35:28]
creates a patchwork of local
[4:35:29]
regulations throughout
[4:35:34]
the state.
[4:35:35]
>> So if a customer in San
[4:35:36]
Diego is ordering cannabis for
[4:35:39]
delivery, it can either come
[4:35:40]
from a permitted retailer in
[4:35:41]
the city a state licensed
[4:35:44]
business entering the city to
[4:35:44]
deliver or a business operating
[4:35:49]
outside of legal requirements.
[4:35:49]
Currently the city only permits
[4:35:50]
storefront or brick and mortar
[4:35:54]
cannabis retailers.
[4:35:54]
These are the ones that are
[4:35:55]
limited to four per council
[4:35:56]
district and they're required
[4:35:59]
to obtain a conditional use
[4:35:59]
permit.
[4:36:00]
They are allowed to deliver
[4:36:00]
direct to consumer as part of
[4:36:04]
that conditional use permit.
[4:36:04]
The city allows state licensed
[4:36:05]
delivery from outside of
[4:36:08]
the city If that business
[4:36:09]
registers for a business tax
[4:36:09]
certificate with
[4:36:10]
the Treasurer's office and
[4:36:13]
remits monthly business taxes.
[4:36:14]
The city's land use code does
[4:36:18]
not allow delivery only
[4:36:18]
non-food storefront retail
[4:36:19]
establishments within city
[4:36:19]
limits.
[4:36:20]
And this ordinance does not
[4:36:22]
change that.
[4:36:23]
And it does not propose any new
[4:36:27]
land uses.
[4:36:28]
Cannabis delivery is extremely
[4:36:29]
difficult to regulate because
[4:36:32]
the operations are mobile.
[4:36:32]
And cities can only regulate
[4:36:33]
what occurs within their
[4:36:33]
jurisdiction.
[4:36:37]
And cannabis businesses can
[4:36:37]
easily avoid those regulations.
[4:36:38]
And on the screen is an example
[4:36:42]
of a listing on weed maps for a
[4:36:43]
business advertising in North
[4:36:43]
Park.
[4:36:46]
That's based in Alameda County
[4:36:47]
and I'm looking at the license
[4:36:48]
on the Department of Cannabis
[4:36:51]
Control website.
[4:36:52]
It's expired but they currently
[4:36:56]
advertise 30 to 60 minute
[4:36:56]
deliveries in San Diego.
[4:37:00]
So here we can see
[4:37:01]
the difference between what's
[4:37:02]
advertised to consumers and
[4:37:02]
where the current the city
[4:37:05]
currently permits cannabis
[4:37:05]
retail.
[4:37:06]
The image on the left are
[4:37:10]
delivery only offerings listed
[4:37:10]
on weed maps in San Diego.
[4:37:11]
And some of these businesses
[4:37:15]
are advertising is based in San
[4:37:16]
Diego and are licensed to
[4:37:16]
the state.
[4:37:17]
Some are not licensed through
[4:37:20]
the state or operate on expired
[4:37:20]
permits or are not following
[4:37:21]
all state and local
[4:37:24]
requirements.
[4:37:24]
State licensing a strict and
[4:37:25]
requires those businesses to
[4:37:28]
return to a licensed premise
[4:37:29]
after a delivery route.
[4:37:30]
To use license facilities to
[4:37:30]
restock their product.
[4:37:34]
To dispatch deliveries only
[4:37:35]
after orders are received and
[4:37:35]
logged.
[4:37:38]
And it also requires delivery
[4:37:39]
of cannabis goods to be
[4:37:40]
performed by a driver employed
[4:37:43]
by that retailer.
[4:37:44]
>> For the retailers to
[4:37:44]
maintain an accurate list of
[4:37:45]
their delivery employees to
[4:37:48]
confirm ages and identities of
[4:37:48]
customers.
[4:37:49]
And for a delivery drivers to
[4:37:50]
carry copies of the retailers
[4:37:53]
license id and an employee
[4:37:54]
badge.
[4:37:54]
Which are just a few examples
[4:37:55]
of the numerous other state
[4:37:58]
requirements as part of
[4:37:59]
commercial cannabis delivery.
[4:38:03]
So with that the goals for this
[4:38:04]
ordinance are to create a
[4:38:08]
centralized regulatory check
[4:38:09]
point for cannabis delivery
[4:38:09]
services entering the city of
[4:38:13]
San Diego.
[4:38:13]
It's to increase the cost of
[4:38:14]
noncompliance through raise
[4:38:17]
penalties.
[4:38:18]
And third, it's to allow
[4:38:18]
private civil action where
[4:38:19]
the city currently lacks staff
[4:38:22]
capacity.
[4:38:23]
Next slide.
[4:38:23]
So with stronger civil
[4:38:28]
enforcement the goal is to
[4:38:29]
incentivize registration for a
[4:38:29]
cannabis delivery services
[4:38:33]
business permit and encourage
[4:38:33]
local compliance.
[4:38:34]
This requirement would be in
[4:38:37]
addition to the business tax
[4:38:38]
certificate and cannabis
[4:38:39]
business tax currently required
[4:38:39]
and administered through
[4:38:42]
the City Treasurer's office.
[4:38:43]
So all three of those processes
[4:38:44]
will be administered by
[4:38:47]
the city Treasurer's office.
[4:38:47]
Cannabis delivery businesses
[4:38:48]
entering into the city of San
[4:38:52]
Diego would be required to
[4:38:53]
obtain the permit.
[4:38:53]
This does not include current
[4:38:57]
cup holders as delivery
[4:38:58]
services are already permitted
[4:38:58]
and regulated through their
[4:39:02]
conditional use permit and they
[4:39:03]
are subject to an annual
[4:39:03]
cannabis fee at around $15,000
[4:39:04]
a year.
[4:39:07]
The application requirements
[4:39:08]
are modeled off of the City of
[4:39:09]
Ventura which has a similar
[4:39:12]
license and would require a
[4:39:13]
copy of the business's state
[4:39:13]
retail license a copy of their
[4:39:16]
business tax certificate
[4:39:17]
information of all owners and
[4:39:21]
employees.
[4:39:22]
Proof that employees are direct
[4:39:22]
employees of the delivery
[4:39:26]
service as required by state
[4:39:26]
law.
[4:39:27]
And the fee amount would be
[4:39:30]
determined in a future action
[4:39:31]
to determine the exact costs
[4:39:32]
recoverable amounts related to
[4:39:38]
the registration or permit
[4:39:38]
expense.
[4:39:43]
So the proposed enforcement
[4:39:43]
changes are to increase civil
[4:39:44]
penalties in three categories
[4:39:47]
in the code regulating
[4:39:48]
commercial cannabis operations.
[4:39:49]
The first is to increase court
[4:39:52]
awarded civil penalties for
[4:39:52]
commercial cannabis violations
[4:39:53]
up to $20,000 per day for
[4:39:57]
cannabis business.
[4:39:58]
The second is to increase
[4:39:58]
administrative civil penalties
[4:40:01]
for violations up to $20,000
[4:40:02]
per day not to exceed 500,000
[4:40:02]
per business.
[4:40:06]
And third, this ordinance
[4:40:07]
defines cannabis violations as
[4:40:10]
a public nuisance which would
[4:40:11]
then allow the city to abate
[4:40:12]
violations if there's capacity.
[4:40:15]
The penalty amounts are aligned
[4:40:16]
with recent updates to land
[4:40:17]
development code which was
[4:40:20]
updated at $10,000 provi lation
[4:40:21]
not to exceed 500,000 per
[4:40:24]
parcel.
[4:40:25]
But the significant enforcement
[4:40:26]
change is to introduce a
[4:40:29]
private right of action for
[4:40:29]
cannabis related code
[4:40:29]
violations.
[4:40:30]
Private right of action are
[4:40:33]
more commonly used in labor law
[4:40:34]
but was implemented to allow
[4:40:35]
civil enforcement against
[4:40:35]
cannabis violations most
[4:40:38]
recently through ab 1171 which
[4:40:39]
was implemented in 2024.
[4:40:43]
The ordinance proposes
[4:40:44]
establishing the private right
[4:40:45]
of action to allow legal
[4:40:48]
cannabis businesses or labor
[4:40:48]
organizations representing
[4:40:49]
cannabis workers to file civil
[4:40:53]
actions to enforce compliance.
[4:40:54]
This means that a licensed
[4:40:55]
cannabis business could sue a
[4:40:55]
business if they can establish
[4:40:58]
that a violation of this
[4:40:59]
ordinance occurred within city
[4:41:02]
limits and any penalties
[4:41:03]
recovered would be distributed
[4:41:04]
between the city for
[4:41:04]
enforcement and the entity
[4:41:07]
bringing the civil action 65%
[4:41:08]
to 35%.
[4:41:09]
And this distribution was
[4:41:13]
modeled after the private
[4:41:13]
Attorney General's act or paga
[4:41:16]
which was updated in 2020 for.
[4:41:17]
So with that the recommended
[4:41:21]
action today is to approve
[4:41:22]
amendments to Chapter four
[4:41:23]
Article two Division 15 of
[4:41:26]
the San Diego Municipal Code to
[4:41:27]
establish a cannabis delivery
[4:41:28]
permit business permit category
[4:41:31]
for commercial cannabis
[4:41:31]
operators entering the city of
[4:41:32]
San Diego to conduct delivery
[4:41:36]
to create a private right of
[4:41:36]
action allowing eligible
[4:41:37]
entities including state
[4:41:38]
certified cannabis retailers
[4:41:41]
and labor unions representing
[4:41:42]
cannabis workers to pursue
[4:41:42]
civil enforcement against
[4:41:46]
operators that violate local
[4:41:46]
commercial cannabis regulations
[4:41:47]
and to revise penalties for
[4:41:50]
noncompliance to a maximum of
[4:41:51]
$20,000 per day for court
[4:41:52]
imposed civil penalties.
[4:41:54]
20,000 per violation for
[4:41:55]
administratively imposed
[4:41:59]
penalties and up to $10,000 per
[4:41:59]
violation for administrative
[4:42:03]
abatement penalties.
[4:42:04]
And that concludes my
[4:42:04]
presentation.
[4:42:04]
Thank you.
[4:42:05]
All right.
[4:42:08]
Thank you very much for
[4:42:09]
the work and the presentation.
[4:42:10]
Now I'll turn it over to
[4:42:10]
the office of the rba for
[4:42:14]
comment.
[4:42:14]
>> Thank you.
[4:42:15]
Council PRESIDENT Sergio
[4:42:15]
Leclaire from the iab his
[4:42:17]
office as presented by staff
[4:42:18]
The this proposal would make
[4:42:19]
four main changes to
[4:42:22]
the municipal code.
[4:42:23]
First they would create a new
[4:42:23]
permit category specifically
[4:42:26]
for cannabis businesses that
[4:42:27]
are based outside the city but
[4:42:28]
deliver cannabis products to
[4:42:31]
customers within city limits.
[4:42:32]
Consistent with the status quo.
[4:42:36]
This proposal will not permit
[4:42:37]
delivery only businesses based
[4:42:37]
within the city.
[4:42:41]
Second, it would establish a
[4:42:42]
private right of action
[4:42:42]
allowing compliant cannabis
[4:42:46]
businesses and representative
[4:42:47]
labor organizations to pursue
[4:42:47]
civil action against operators
[4:42:51]
without a civil city permit
[4:42:52]
without a valid city permit.
[4:42:56]
Civil penalties recoverable in
[4:42:56]
this manner would be shared
[4:42:57]
with the city.
[4:43:01]
Third, it will classify
[4:43:01]
cannabis businesses without a
[4:43:02]
city permit as a public
[4:43:02]
nuisance.
[4:43:05]
And lastly it would separate.
[4:43:06]
It would update fines for those
[4:43:06]
that fail to comply with
[4:43:10]
the city's cannabis permitting
[4:43:10]
requirements.
[4:43:11]
Based on our conversations with
[4:43:11]
relevant departments.
[4:43:15]
The fiscal impact of this
[4:43:15]
proposal is uncertain but MAY
[4:43:19]
not be substantial.
[4:43:20]
There are three noteworthy
[4:43:21]
sources of potential revenue
[4:43:24]
outlined in the proposal.
[4:43:25]
First is permitting fees.
[4:43:26]
Second is city imposed fines.
[4:43:29]
And then third is the city's
[4:43:30]
share of civil penalties
[4:43:31]
recovered through private right
[4:43:34]
of action which would be one
[4:43:34]
time in nature.
[4:43:38]
Regarding permitting fees,
[4:43:39]
the number of businesses likely
[4:43:39]
to seek a new delivery permit
[4:43:43]
is limited currently to conduct
[4:43:44]
business including deliveries
[4:43:44]
within the city.
[4:43:47]
Cannabis businesses outside
[4:43:48]
city limits must obtain a
[4:43:49]
business tax certificate and
[4:43:52]
remit cannabis business tax.
[4:43:53]
The city Treasurer's office
[4:43:53]
indicated that there are five
[4:43:58]
of these compliant businesses.
[4:43:58]
Staff noted that if a new
[4:43:59]
permit is established these
[4:44:03]
five businesses are expected to
[4:44:03]
obtain the new permit in
[4:44:07]
addition to the business tax to
[4:44:07]
cannabis delivery services that
[4:44:11]
do not currently have business
[4:44:12]
Business tax ratification,
[4:44:13]
however, would likely not
[4:44:16]
comply with additional
[4:44:17]
permitting requirement given
[4:44:18]
the small number of affected
[4:44:21]
businesses Any permit fee
[4:44:21]
revenue as well as cannabis
[4:44:22]
business tax revenue would
[4:44:23]
likely be limited unless
[4:44:26]
private rights of action compel
[4:44:27]
enforcement.
[4:44:31]
Regarding fines we found that
[4:44:32]
the city currently does not
[4:44:33]
receive currently receives
[4:44:33]
minimal city issued penalty
[4:44:36]
revenue from delivery operators
[4:44:37]
that do not comply with
[4:44:37]
the city's current regulations.
[4:44:41]
Therefore, even with
[4:44:42]
adjustments to the fines city
[4:44:43]
issued penalty revenue would
[4:44:46]
likely remain minimal.
[4:44:46]
The private Right of action
[4:44:51]
provision offers an additional
[4:44:51]
enforcement tool for private
[4:44:52]
entities.
[4:44:55]
Though state law allows
[4:44:56]
licensed cannabis businesses
[4:45:00]
including those permitted by by
[4:45:01]
the city to pursue civil action
[4:45:01]
against operators without a
[4:45:05]
state license, cannabis
[4:45:06]
license.
[4:45:06]
The city's city attorney's
[4:45:07]
office has not found any
[4:45:11]
reported cases of such
[4:45:11]
lawsuits.
[4:45:11]
So it's unclear whether
[4:45:12]
eligible parties would choose
[4:45:16]
to pursue civil action under
[4:45:17]
this proposal.
[4:45:18]
As noted by the presentation,
[4:45:21]
however, the state's provision
[4:45:21]
has a higher burden of proof
[4:45:22]
and a more limited financial
[4:45:23]
incentive Compared to this
[4:45:26]
proposal.
[4:45:27]
Additionally, this proposal
[4:45:27]
would also allow compliant city
[4:45:28]
businesses to pursue civil
[4:45:31]
action against operators
[4:45:32]
without a city permit work
[4:45:33]
orders regardless of whether
[4:45:36]
they have a state issued
[4:45:41]
cannabis license or not or
[4:45:42]
the intent of this proposal is
[4:45:43]
to regulate state licensed
[4:45:43]
cannabis businesses not
[4:45:46]
complying with city regulations
[4:45:47]
or unregulated operators.
[4:45:48]
We note that the greater
[4:45:48]
compliance challenge lies
[4:45:52]
within with cannabis delivery
[4:45:52]
businesses that operate
[4:45:53]
illicitly without state issued
[4:45:57]
licenses or illicit operators
[4:45:58]
since again they're unlikely to
[4:46:02]
comply with the new additional
[4:46:03]
local permit requirement.
[4:46:03]
Additionally, since this
[4:46:04]
proposal doesn't increase
[4:46:07]
the city's enforcement levels,
[4:46:08]
the permit and fines provision
[4:46:09]
of this proposal MAY not
[4:46:13]
significantly improve
[4:46:13]
compliance among illicit or
[4:46:14]
unregulated operators and
[4:46:17]
materially increase the city's
[4:46:18]
revenues.
[4:46:19]
Unless a private right of
[4:46:22]
action compels enforcement
[4:46:23]
During our discussions with
[4:46:24]
the Development Services
[4:46:28]
Department and the Treasurer
[4:46:29]
they raise concerns regarding
[4:46:29]
implementation.
[4:46:30]
These operational concerns
[4:46:34]
include uncertainty over
[4:46:35]
whether which new which
[4:46:35]
department would enforce
[4:46:40]
the new perimeter permit or
[4:46:40]
what enforcement of the new
[4:46:41]
permit would look like from
[4:46:42]
the city's perspective.
[4:46:44]
Questions about the city's
[4:46:45]
authority to find businesses
[4:46:46]
located outside city boundaries
[4:46:46]
and whether additional
[4:46:50]
resources would be needed to
[4:46:51]
administer and enforce
[4:46:51]
the program.
[4:46:52]
We recommend that council
[4:46:55]
inquire further with
[4:46:56]
departments including the city
[4:46:57]
Attorney's office, city
[4:47:01]
treasurers, dsd and police
[4:47:02]
the police department regarding
[4:47:02]
the practical challenges of
[4:47:03]
implementing and enforcing
[4:47:06]
these provisions and whether
[4:47:06]
they are there are any
[4:47:07]
outstanding issues.
[4:47:07]
This concludes my comments and
[4:47:13]
are available for any
[4:47:13]
questions.
[4:47:14]
Then comes Council PRESIDENT.
[4:47:15]
All right, Thank you for your
[4:47:15]
always appreciate the input at
[4:47:16]
the office.
[4:47:17]
With that Deputy clerk please
[4:47:18]
proceed with public comment.
[4:47:22]
>> This item received five
[4:47:23]
comments in Opposition via our
[4:47:23]
economic forum which has been
[4:47:24]
distributed to the Council.
[4:47:28]
We'll begin with in-person
[4:47:28]
comment.
[4:47:29]
DeAndre Brooks please come
[4:47:29]
forward.
[4:47:33]
You'll have one minute to speak
[4:47:34]
while DeAndre walks to
[4:47:35]
the microphone I would ask Matt
[4:47:35]
Stransky.
[4:47:39]
Mark o'Brien as our man king
[4:47:40]
And Terry best to please come
[4:47:44]
to the front row Council
[4:47:44]
members My name is DeAndre
[4:47:50]
Brooks and I'm here tonight as
[4:47:50]
a concerned citizen with strong
[4:47:51]
opposition to this ordinance
[4:47:55]
for several reasons.
[4:47:56]
In a sense it creates a
[4:47:56]
monopoly on the delivery
[4:48:02]
services and that's also
[4:48:02]
counterproductive to
[4:48:03]
the county's cannabis equity
[4:48:07]
program that's been spearheaded
[4:48:08]
So for individuals who have
[4:48:09]
been harmed by the war on drugs
[4:48:13]
and then living out over
[4:48:13]
criminalized communities an
[4:48:14]
opportunity to get into
[4:48:15]
the cannabis industry so we end
[4:48:19]
up voting yes to things like
[4:48:19]
that.
[4:48:20]
It is super counterproductive
[4:48:21]
to what we're trying to do as a
[4:48:24]
county.
[4:48:25]
And if you recall this same
[4:48:26]
issue came before this city
[4:48:30]
council and you guys kind of
[4:48:31]
shut it down basically sort of
[4:48:32]
county had to come in to give
[4:48:32]
that demographic an opportunity
[4:48:36]
to thrive in this industry.
[4:48:37]
So again, I'm a strong
[4:48:38]
opposition to this and I urge
[4:48:39]
you to consider everything I
[4:48:47]
just said Thank you, MR. Ski.
[4:48:47]
I don't see you.
[4:48:48]
Okay.
[4:48:52]
We'll move on to Marco Briones
[4:48:52]
Thank you, council members.
[4:48:53]
But again we stand in
[4:48:54]
solidarity with the brothers
[4:48:58]
and sisters of 135 you if cw
[4:48:58]
and ask you to support this
[4:48:59]
ordinance today at a time
[4:49:03]
cannabis delivery businesses
[4:49:04]
are avoiding paying the city's
[4:49:04]
cannabis retail tax and harming
[4:49:05]
our local permitted cannabis
[4:49:06]
retailers like the ones I've
[4:49:09]
known since childhood that are
[4:49:09]
here today.
[4:49:10]
So our local cannabis workers
[4:49:11]
are really feeling these
[4:49:16]
effects of the unregulated
[4:49:16]
activity, seeing their hours of
[4:49:17]
layoffs and wages reduced
[4:49:20]
workers and taxpayers are
[4:49:20]
better.
[4:49:21]
>> We support this and we ask
[4:49:21]
you to do the same.
[4:49:27]
Thank you.
[4:49:27]
Thank you.
[4:49:28]
Our next speaker is Armand
[4:49:28]
King.
[4:49:28]
All right.
[4:49:32]
Do you have several speakers
[4:49:33]
reading time to you?
[4:49:34]
When I call your name please
[4:49:34]
raise your hand to confirm
[4:49:35]
you're here.
[4:49:38]
Justin Lewis going on.
[4:49:39]
Okay.
[4:49:39]
Anthony Hawkins.
[4:49:46]
Okay, Louis The waste business
[4:49:46]
gone.
[4:49:46]
Okay.
[4:49:49]
And tis one Let us Okay.
[4:49:50]
>> So that you'll have three
[4:49:50]
minutes.
[4:49:50]
Okay.
[4:49:54]
Sounds good.
[4:49:55]
Thank you.
[4:49:56]
So what was pointed out was
[4:49:56]
Alameda, right?
[4:49:57]
Alameda problem There are there
[4:50:01]
is a problem with dispensary
[4:50:01]
deliveries happening from
[4:50:02]
outside of San Diego County.
[4:50:07]
Very much so that should be
[4:50:07]
regulated.
[4:50:08]
What's not mentioned is our
[4:50:08]
neighbors La mesa, National
[4:50:09]
City, Chula Vista.
[4:50:13]
Let me grow now They cannot
[4:50:13]
deliver across the street
[4:50:14]
without going through this and
[4:50:15]
I'm not here to fight for them.
[4:50:19]
I doubt has been reach out to
[4:50:20]
these cities to let them know
[4:50:20]
that this is about to happen.
[4:50:21]
There has not been adequate
[4:50:25]
reach out to communities We
[4:50:25]
there hasn't been a time limit
[4:50:26]
right now The problem is and
[4:50:30]
what I'm here representing
[4:50:31]
those social equity applicants
[4:50:31]
I'm the program manager for
[4:50:32]
the County of San Diego Social
[4:50:36]
Equity Program.
[4:50:37]
The majority of our
[4:50:37]
participants are San Diego City
[4:50:42]
residents from your district,
[4:50:43]
your district or district in
[4:50:44]
your district the majority of
[4:50:44]
them.
[4:50:45]
Why are they in a county
[4:50:45]
program?
[4:50:49]
Because we all know I thought
[4:50:50]
we know we had it here and
[4:50:50]
the same entities that are
[4:50:55]
coming bringing that brought
[4:50:56]
this law because it didn't come
[4:50:56]
from your office, it came from
[4:50:57]
the same people, the same evil
[4:51:00]
people that stripped us from
[4:51:01]
having a social equity program
[4:51:07]
here are now back in this.
[4:51:08]
So what's behind the scenes
[4:51:08]
That private right to action
[4:51:09]
private right to action is
[4:51:12]
saying there now you all by
[4:51:13]
voting yes or giving them a
[4:51:14]
loaded gun to now attack
[4:51:18]
the very people that should be
[4:51:19]
in the city program right now
[4:51:20]
These people live in your city.
[4:51:21]
They live in Linda Vista.
[4:51:25]
They live in North Park.
[4:51:25]
They live in southeast San
[4:51:25]
Diego.
[4:51:26]
They live here.
[4:51:27]
And even if now they have to
[4:51:30]
locate because to have a
[4:51:31]
delivery service you have to
[4:51:32]
have a building somewhere to
[4:51:32]
deliver.
[4:51:32]
Forget outside.
[4:51:36]
Forget Oakland, forget L.A. San
[4:51:37]
Diego residents that you're
[4:51:37]
attacking here are people so
[4:51:42]
they have to have a break not a
[4:51:43]
brick and mortar but a building
[4:51:44]
where they store their their
[4:51:48]
stories that they live in San
[4:51:48]
Diego.
[4:51:49]
They pay rent in Central City.
[4:51:49]
They shop in San Diego City.
[4:51:50]
Where's the revenue coming back
[4:51:54]
to here?
[4:51:55]
So my only ask is is there a
[4:51:55]
way for us if we want to
[4:51:56]
register them because they're
[4:52:00]
going to be legal operators,
[4:52:01]
Can we set up a process to
[4:52:01]
where the city of San Diego
[4:52:07]
knows who they are but to add
[4:52:07]
an extra barrier to people who
[4:52:08]
have been buried and we stand
[4:52:12]
here marching on the ashes of a
[4:52:13]
program that we should have had
[4:52:14]
right Because certain people
[4:52:18]
are afraid to feel the wrath of
[4:52:19]
high paid lobbyists that are
[4:52:24]
pushing this forward.
[4:52:25]
>> I have represented
[4:52:25]
the people from your city.
[4:52:26]
Clean this up.
[4:52:30]
Yes, we need to regulate
[4:52:30]
outside people.
[4:52:31]
Yes, we do.
[4:52:31]
But this ain't it.
[4:52:32]
Let's do this right Because
[4:52:33]
once you sign this once you say
[4:52:37]
yes and this is put into place
[4:52:38]
you're giving You heard of a
[4:52:38]
Trojan horse, right?
[4:52:39]
It looks nice and shiny.
[4:52:43]
The way to deliver to your is
[4:52:43]
we're keeping out all these
[4:52:44]
outside folks But meanwhile
[4:52:45]
inside that Trojan horse is an
[4:52:48]
army ready to attack.
[4:52:49]
They can't wait to see all
[4:52:50]
these people out of business.
[4:52:50]
They couldn't stop the county
[4:52:51]
the same way they stopped
[4:52:54]
the city They couldn't And
[4:52:55]
we're about to have unlimited
[4:52:55]
delivery services.
[4:53:01]
Thank you for your time.
[4:53:01]
Thank you.
[4:53:02]
Next up Terry Bass.
[4:53:02]
Well, Terry walks to
[4:53:03]
the microphone.
[4:53:04]
I would like to ask Daniela
[4:53:06]
Nelson, Victoria Bush, James
[4:53:07]
Case, Nate Ferryman and
[4:53:08]
allegedly Otto to please come
[4:53:12]
to the front row please Again,
[4:53:13]
Terry.
[4:53:13]
Thank you.
[4:53:16]
I'm Terry Best, a voter in
[4:53:16]
District three.
[4:53:17]
This appears to be an
[4:53:17]
unnecessary law aimed at
[4:53:22]
the Social at the county social
[4:53:22]
equity program.
[4:53:23]
My suggestion would be to
[4:53:28]
please remove the private right
[4:53:28]
of action portion from
[4:53:29]
the proposal.
[4:53:34]
It is just wrong and shame on
[4:53:35]
you.
[4:53:35]
>> Shame on you too.
[4:53:41]
Please also modify the proposal
[4:53:41]
to only cover out of county
[4:53:42]
delivery services.
[4:53:46]
Please exclude all three within
[4:53:47]
San Diego County and San Diego
[4:53:52]
County itself from this law.
[4:53:53]
Each of our cities has a robust
[4:53:53]
cannabis permitting process.
[4:53:58]
It is not necessary to be
[4:53:58]
hostile to other cities
[4:53:59]
delivery operations.
[4:54:04]
Please do this so that at
[4:54:05]
the very least the one licensed
[4:54:05]
type where we struggling
[4:54:09]
entrepreneur could hope to get
[4:54:10]
into the industry is not
[4:54:16]
blocked by special interests.
[4:54:17]
Thank you that those who do not
[4:54:17]
want the competition
[4:54:18]
the current city operators
[4:54:23]
behind this proposal have
[4:54:23]
enjoyed additional
[4:54:24]
consideration.
[4:54:24]
Thank you.
[4:54:25]
No other industry enjoys.
[4:54:31]
Now the city is considering
[4:54:32]
whether that does conclude your
[4:54:32]
time on the board.
[4:54:33]
What would you do if you took
[4:54:34]
special interest along with a
[4:54:34]
rabbit for a profit and any
[4:54:38]
other.
[4:54:38]
>> Thank you.
[4:54:40]
Next speaker is Don Ellen
[4:54:47]
Nelson.
[4:54:48]
Hello, everybody.
[4:54:48]
Good evening.
[4:54:49]
My name is Donald Nelson.
[4:54:50]
I am a proud resident of San
[4:54:54]
Diego and live out to just
[4:54:54]
outside of City Heights.
[4:54:55]
I am actually here in support
[4:54:59]
of this measure.
[4:55:00]
Having worked on the license
[4:55:01]
cannabis delivery in San Diego.
[4:55:01]
I have firsthand seen
[4:55:05]
the impact of an illegal market
[4:55:05]
Continuing to have legitimate
[4:55:06]
business licenses are
[4:55:06]
legitimate businesses,
[4:55:11]
employees and consumers while
[4:55:11]
license operators invest
[4:55:12]
significant resources into
[4:55:13]
complying with state and local
[4:55:17]
regulations regulations.
[4:55:17]
Many unlicensed operators
[4:55:18]
continue to conduct business
[4:55:18]
without oversight
[4:55:23]
accountability and
[4:55:23]
consequences.
[4:55:24]
Licensed cannabis Licensed
[4:55:25]
cannabis is required to test
[4:55:30]
the products, verify customer
[4:55:30]
rage, maintain strict inventory
[4:55:31]
controls and pay taxes to
[4:55:35]
support our local community.
[4:55:36]
Illegal operators do not do
[4:55:36]
none of those things.
[4:55:37]
They undermine public safety,
[4:55:42]
avoid paying taxes and create
[4:55:42]
unfair competition for
[4:55:43]
businesses that are trying to
[4:55:43]
do things right.
[4:55:44]
I myself has been a part of
[4:55:48]
the cannabis industry for five
[4:55:48]
years and over the time I've
[4:55:49]
watched them do that does
[4:55:49]
conclude your time.
[4:55:50]
>> Thank you.
[4:55:53]
Thank you.
[4:55:54]
Next speaker is Victoria Bush.
[4:55:54]
Victoria.
[4:55:55]
Here.
[4:55:59]
Okay.
[4:56:00]
James Case Thank you Counsel My
[4:56:05]
time.
[4:56:05]
Thank you, Council members.
[4:56:06]
My name is James Case.
[4:56:07]
I'm a resident of District two
[4:56:11]
and I've lived and worked in
[4:56:12]
San Diego, the city of San
[4:56:12]
Diego for over 30 years since
[4:56:13]
SEPTEMBER of 2021.
[4:56:17]
I've been a proud member of
[4:56:18]
the United Food and Commercial
[4:56:19]
Workers Union as a delivery
[4:56:19]
driver for legal registered
[4:56:23]
cannabis dispensaries San
[4:56:24]
Diego.
[4:56:24]
I'm not evil.
[4:56:25]
I'm a 63 year old grandpa.
[4:56:25]
I do my job.
[4:56:29]
I love my job And that's four
[4:56:30]
and a half years I've been
[4:56:30]
doing this.
[4:56:34]
I've delivered I've driven over
[4:56:35]
100,000 miles on the streets of
[4:56:35]
San Diego delivering cannabis.
[4:56:36]
And one thing I've learned to
[4:56:40]
be here today is it's about
[4:56:41]
the money The city needs
[4:56:41]
the money.
[4:56:42]
Unlicensed operators have no
[4:56:46]
incentive to pay business
[4:56:46]
taxes.
[4:56:47]
Those business taxes not only
[4:56:52]
fund the works of the city,
[4:56:53]
those operators also provide
[4:56:53]
good jobs like my union job
[4:56:58]
where the people who have those
[4:56:58]
jobs spend that money in
[4:56:59]
the county in the city.
[4:57:05]
So those dollars not only thank
[4:57:06]
that does the county help
[4:57:07]
the community?
[4:57:11]
Next speaker is Nate Furman.
[4:57:12]
Don't see Nate here.
[4:57:13]
I will go to allegedly order
[4:57:16]
next please smile.
[4:57:17]
Just coming to the microphone
[4:57:22]
Todd Walters grant Tom, Robert
[4:57:23]
Wood, Larry Beekman and Eduardo
[4:57:27]
Battista Please come to talk
[4:57:28]
about a war on drugs.
[4:57:29]
Did you guys ever think you'd
[4:57:29]
be micromanaging drug turf
[4:57:34]
competition and stuff like
[4:57:34]
that?
[4:57:34]
How cool is that?
[4:57:35]
Right?
[4:57:35]
It used to be illegal.
[4:57:36]
Now it's not.
[4:57:38]
I mean one day it could be
[4:57:38]
again.
[4:57:39]
Who knows?
[4:57:40]
It's like on the edge of your
[4:57:40]
seat which is so interesting
[4:57:44]
because people think it's still
[4:57:44]
profitable.
[4:57:49]
The government has taken like
[4:57:50]
$60 billion industry and it's
[4:57:51]
like governance.
[4:57:51]
>> We heard your daddy I mean
[4:57:55]
talk about being able to make
[4:57:56]
all the money and not have to
[4:57:56]
pay taxes.
[4:57:57]
Then you come here like listen,
[4:57:58]
we need you to regulate it and
[4:58:02]
I do not want these people
[4:58:02]
coming into my territory.
[4:58:03]
So you guys are going to need
[4:58:06]
to regulate that know But this
[4:58:07]
is what is so interesting New
[4:58:14]
permits you know what I mean?
[4:58:14]
It's like I'm sorry.
[4:58:15]
I just I don't understand why
[4:58:16]
people think it's cool for you
[4:58:19]
to come to the government and
[4:58:20]
be like what's going to take
[4:58:24]
billions of dollars out of my
[4:58:25]
pocket like I did?
[4:58:26]
>> But good for you guys,
[4:58:26]
right?
[4:58:27]
And it's supposed to go to city
[4:58:31]
services.
[4:58:32]
>> Looks like it's working.
[4:58:32]
Thank you.
[4:58:33]
That does conclude your time.
[4:58:33]
Our next speaker is Todd
[4:58:39]
Walters.
[4:58:40]
Good evening City council and
[4:58:41]
city staff and thank you very
[4:58:41]
much for your time.
[4:58:42]
It's very valuable and I
[4:58:46]
respect it.
[4:58:46]
Most people aren't aware of it.
[4:58:47]
The cannabis legal cannabis
[4:58:48]
industry is in trouble.
[4:58:52]
It's not doing well.
[4:58:53]
The unpermitted cannabis
[4:58:53]
delivery services are taking
[4:58:54]
business away from those
[4:58:58]
licensed retailers who are
[4:58:58]
paying taxes.
[4:58:59]
The illicit cannabis market can
[4:59:00]
treat contributes to a shadow
[4:59:04]
economy where wage theft,
[4:59:05]
unsafe working conditions and
[4:59:06]
labor exploitation are more
[4:59:06]
likely to occur.
[4:59:10]
Workers in legal cannabis
[4:59:11]
industry should not have to
[4:59:11]
compete against businesses that
[4:59:12]
ignore regulations and avoid
[4:59:16]
paying their fair share.
[4:59:16]
Stronger licensing requirements
[4:59:17]
help ensure that cannabis
[4:59:18]
businesses operating in San
[4:59:21]
Diego follow the same rules.
[4:59:22]
Ensuring operators contribute
[4:59:23]
to the cannabis business tax
[4:59:28]
helps generate revenue for our
[4:59:28]
city essential services which
[4:59:29]
we know we need.
[4:59:33]
Supporting this ordinance means
[4:59:34]
protecting workers responsible
[4:59:34]
business and the integrity of
[4:59:35]
Senegal's regulated cannabis
[4:59:39]
industry.
[4:59:39]
In conclusion I just ask you to
[4:59:40]
support this ordinance and
[4:59:41]
support the workers.
[4:59:41]
Thank you.
[4:59:42]
Thank you.
[4:59:49]
Our next speaker is Grant Tom.
[4:59:50]
>> Good evening.
[4:59:50]
I'm Grant Tom Secretary
[4:59:56]
Treasurer Jacobi Look at 135 I
[4:59:56]
represent about 12,000 members
[4:59:57]
throughout the county
[5:00:01]
everywhere including retail,
[5:00:02]
cannabis, medical, kiser
[5:00:02]
everything I know the out of
[5:00:06]
town companies and listed
[5:00:07]
operators of unpermitted
[5:00:08]
cannabis businesses that are
[5:00:08]
currently operating or harming
[5:00:12]
or illegal local cannabis
[5:00:13]
industry and operators and
[5:00:13]
they're undercutting taxpayers
[5:00:18]
but not paying their fair share
[5:00:19]
of the cannabis retail tax just
[5:00:20]
hurts the workers who are
[5:00:24]
causing reduce hours and we've
[5:00:25]
had tons of layoffs.
[5:00:25]
It's really sad.
[5:00:26]
It's important to maintain
[5:00:26]
the integrity of your San
[5:00:31]
Diego's regulated your cannabis
[5:00:31]
industry.
[5:00:32]
It's also important to protect
[5:00:37]
the workers and the taxpayer.
[5:00:38]
This ordinance creates enhanced
[5:00:38]
enforcement to protect those
[5:00:43]
workers and their families
[5:00:44]
including other local high road
[5:00:44]
cannabis businesses.
[5:00:48]
Please support this ordinance.
[5:00:49]
Thank you guys very much.
[5:00:49]
Thank you.
[5:00:55]
Robert Wood.
[5:00:55]
While Robert walks to
[5:00:56]
the microphone, I will ask for
[5:01:01]
the folks as needed in time to
[5:01:01]
please raise my hand when
[5:01:05]
called Eduardo Camacho Eduardo
[5:01:12]
Livio Marquez No.
[5:01:12]
Okay.
[5:01:18]
Ada Castaneda okay, So Ada is
[5:01:19]
here so you'll have to answer.
[5:01:24]
>> Okay?
[5:01:24]
>> Doug Okay.
[5:01:30]
Thank you.
[5:01:30]
First of all, my name is Robert
[5:01:31]
Wood.
[5:01:31]
I am a citizen of San Diego
[5:01:32]
County.
[5:01:35]
I was born and raised in
[5:01:36]
the city of San Diego.
[5:01:37]
I did prison time for selling
[5:01:41]
marijuana.
[5:01:41]
Now I go throughout
[5:01:42]
the community, try to improve
[5:01:48]
it in various ways and I'm a
[5:01:48]
social equity cannabis
[5:01:49]
advocate.
[5:01:52]
Would that be I'm one of
[5:01:53]
the people he helped build
[5:01:54]
the cannabis industry in
[5:01:57]
the county of San Diego at one
[5:01:58]
point and one of the people who
[5:01:58]
went to prison behind it And
[5:01:59]
now I'm out.
[5:02:03]
I'm ready to do things legally.
[5:02:04]
I told five different greens
[5:02:04]
one the nba.
[5:02:08]
I understand barriers to entry,
[5:02:09]
barriers to entry be it dealt
[5:02:10]
with Businesses want to keep
[5:02:14]
people out of something they
[5:02:14]
come up with ridiculous like
[5:02:15]
this ridiculousness like this.
[5:02:16]
They come up with things where
[5:02:20]
they say Oh you're probably
[5:02:21]
right too soon so you can just
[5:02:21]
personally sue me into oblivion
[5:02:25]
yourself.
[5:02:26]
You don't need anybody else to
[5:02:26]
do it for you.
[5:02:27]
This is this is this is
[5:02:31]
incredible to me.
[5:02:32]
The people in the San Diego
[5:02:33]
Social Equity Cannabis program
[5:02:37]
are people from San Diego.
[5:02:38]
We all arrested in San Diego
[5:02:39]
for cannabis at some point
[5:02:43]
Social equity cannabis.
[5:02:44]
It's just that is social
[5:02:44]
equity.
[5:02:45]
Do you think that any of these
[5:02:51]
businesses that got together it
[5:02:51]
concocted this that one time
[5:02:56]
about such work I can't see one
[5:02:57]
facing one of these owners in
[5:02:57]
here that came down to
[5:02:58]
the social equity program and
[5:03:03]
took the time to talk to us and
[5:03:03]
try in equities you would think
[5:03:04]
that they would be embracing
[5:03:07]
this, trying to work at it and
[5:03:08]
saying you got to try to get
[5:03:08]
into this Cool.
[5:03:09]
Let us see what we can do to
[5:03:13]
help you guys If they take
[5:03:14]
tooth and nail the whole time,
[5:03:20]
it's time that the game stop is
[5:03:20]
time that this gets torn up,
[5:03:21]
that the barriers to entry stop
[5:03:25]
and social equity is treated
[5:03:25]
like we're just supposed to be
[5:03:26]
sociable and equitable.
[5:03:29]
>> Thank you.
[5:03:29]
>> Thank you.
[5:03:42]
Blair Beekman.
[5:03:42]
All right.
[5:03:42]
Thank you.
[5:03:43]
Where we going?
[5:03:47]
I have not known much about
[5:03:47]
this item.
[5:03:48]
It was a learning process for
[5:03:48]
myself.
[5:03:49]
I really like hearing public
[5:03:53]
comment on it about the social
[5:03:54]
equity lack that seems to be a
[5:03:59]
part of this.
[5:04:00]
We try to make up rules and
[5:04:00]
laws sometimes that we feel is
[5:04:05]
just gosh darn good, you know
[5:04:05]
and we're doing a good thing.
[5:04:10]
It has a logic to it is a good
[5:04:10]
logic but that logic doesn't
[5:04:15]
take into account what maybe is
[5:04:16]
going on underneath.
[5:04:17]
This is a group that seems to
[5:04:17]
have some sort of real thing
[5:04:21]
going on in wanting to nail
[5:04:27]
social equity with marijuana
[5:04:28]
purchases and how that process
[5:04:28]
can work.
[5:04:29]
I mean Oakland has always
[5:04:34]
created really good examples of
[5:04:34]
social equity.
[5:04:35]
Perhaps you can talk to them at
[5:04:40]
this time at this needs a bit
[5:04:41]
of more review and work it
[5:04:41]
sounds like Thank you.
[5:04:45]
>> Thank you Eduardo Batista
[5:04:46]
followed by Anthony Ralphs and
[5:04:50]
more so Daniel.
[5:04:51]
Good evening Council members My
[5:04:56]
name is Eduardo Batista and I
[5:04:57]
respectfully oppose this
[5:04:57]
cannabis delivery proposal.
[5:04:58]
I support legal cannabis
[5:05:02]
businesses paying taxes
[5:05:02]
following the rules and
[5:05:03]
operating responsibly.
[5:05:04]
But this proposal goes beyond
[5:05:07]
fair regulation.
[5:05:07]
It creates new barriers for
[5:05:08]
licensed delivery operators and
[5:05:09]
gives existing cannabis
[5:05:13]
retailers the ability to use
[5:05:13]
private lawsuits against
[5:05:14]
competitors.
[5:05:18]
So weaponizing it This is
[5:05:18]
dangerous for small businesses,
[5:05:19]
county operators and future
[5:05:20]
social equity businesses that
[5:05:23]
MAY not have the resources to
[5:05:24]
fight expensive litigation.
[5:05:25]
Even a threat of lawsuit can
[5:05:29]
discourage competition and
[5:05:30]
limit access.
[5:05:30]
You can also look California
[5:05:31]
Motor Transport Company where
[5:05:35]
trucking Unlimited and I think
[5:05:36]
that covers kind of that If
[5:05:40]
the concern is tax compliance,
[5:05:41]
create a simple registration
[5:05:41]
and tax process.
[5:05:42]
If concern is illegal operators
[5:05:45]
focus enforcement on unlicensed
[5:05:46]
activity but do not create a
[5:05:47]
system that allows established
[5:05:51]
businesses to weaponize
[5:05:52]
enforcement against licensed
[5:05:52]
competitors.
[5:05:53]
I urge the Council to reject
[5:05:56]
this proposal.
[5:05:56]
>> Thank you.
[5:05:57]
That does conclude your time.
[5:06:01]
Anthony Ralphs Yes I had
[5:06:02]
submitted want to speak in
[5:06:06]
favor but after hearing
[5:06:07]
the deliberation I think I'm
[5:06:08]
going to change to speak in
[5:06:11]
opposition.
[5:06:17]
>> The reason why I am changing
[5:06:18]
my position from going in favor
[5:06:19]
to in opposition is because I
[5:06:22]
do think that regulation has
[5:06:23]
good intentions.
[5:06:27]
I do want to see delivery
[5:06:28]
drivers have the ability to
[5:06:28]
have some type of guidelines by
[5:06:29]
the city as to what they can do
[5:06:33]
and what they can't do.
[5:06:34]
However, I was really concerned
[5:06:34]
about the amount of
[5:06:35]
the penalties that would be
[5:06:38]
imposed The $20,000 a day just
[5:06:39]
like none of us are made out of
[5:06:40]
gold and we all make mistakes
[5:06:44]
and $20,000 to be out of
[5:06:48]
compliance or to have made a
[5:06:49]
mistake with the regulations
[5:06:53]
just seems really excessive to
[5:06:54]
me.
[5:06:54]
And also I think that if there
[5:06:59]
is a confliction a conflict
[5:06:59]
between the socially equitable
[5:07:03]
cannabis program and this one I
[5:07:03]
think I would rather go with
[5:07:04]
the socially equitable
[5:07:04]
community program.
[5:07:05]
Thank you.
[5:07:05]
Thank you.
[5:07:07]
Lori Saldana you actually cut
[5:07:13]
off some of his time but let me
[5:07:14]
just start out by saying what
[5:07:14]
Terry Bell said.
[5:07:18]
MR. Campos shame on you and
[5:07:18]
your committee members.
[5:07:19]
You were putting a loaded gun
[5:07:22]
in the hands of people to go
[5:07:23]
after folks who have been
[5:07:23]
historically disadvantaged in
[5:07:24]
this industry.
[5:07:27]
When I served the legislature I
[5:07:28]
wrote bills to do the exact
[5:07:29]
opposite to try and prevent
[5:07:32]
this kind of cherry picking and
[5:07:33]
I'm going to stick around for a
[5:07:34]
non agenda comment so I can
[5:07:38]
speak a little bit more about
[5:07:38]
what if other industries took
[5:07:39]
this approach What if other
[5:07:42]
indices were given a gun and
[5:07:43]
said you can do private action
[5:07:44]
and go after these opponents?
[5:07:47]
Are these competitors It would
[5:07:47]
be mayhem.
[5:07:51]
Shame on you.
[5:07:52]
Shame on you MR. Foster.
[5:07:52]
You know how this community has
[5:07:57]
been hurt so I just don't
[5:07:57]
understand why you're picking
[5:07:58]
winners and losers.
[5:07:58]
I wait.
[5:07:58]
I do.
[5:08:01]
Who has money?
[5:08:02]
Who gives money to
[5:08:02]
the Democratic Party?
[5:08:03]
Who gives money to the party
[5:08:04]
and then passes it on to
[5:08:06]
candidates?
[5:08:07]
>> The people that you are
[5:08:11]
favoring on this Shame on you.
[5:08:12]
>> Thank you.
[5:08:12]
That does conclude your time.
[5:08:16]
That concludes in-person public
[5:08:16]
comment.
[5:08:20]
We have started the five minute
[5:08:20]
timer and council chambers will
[5:08:21]
now turn to the virtual queue
[5:08:23]
in which there are ten
[5:08:24]
participants requesting to
[5:08:24]
speak.
[5:08:28]
We'll begin with Terry and
[5:08:28]
Skelly.
[5:08:33]
Please begin.
[5:08:34]
>> Good afternoon San Diego
[5:08:38]
City Council Chair LaCava My
[5:08:38]
name is Terrance Fili and I
[5:08:39]
work with my planning group on
[5:08:42]
good public health and safety
[5:08:42]
policies and land use
[5:08:43]
decisions.
[5:08:43]
I support this policy.
[5:08:47]
I appreciate the city's effort
[5:08:48]
to know who is selling pot in
[5:08:52]
our city and where the pot is
[5:08:52]
coming from since it doesn't
[5:08:53]
seem to have a physical
[5:08:56]
location within the city, this
[5:08:57]
is a very good thing We should
[5:08:58]
be aware of actual actually
[5:09:01]
being successful collecting
[5:09:01]
cannabis business tax and
[5:09:06]
perhaps also remember that
[5:09:06]
the comment by a physician
[5:09:07]
trained in emergency medicine
[5:09:10]
pediatrics and family practice
[5:09:11]
and I quote It's ridiculous to
[5:09:15]
think that any city or county
[5:09:15]
will make it will make excess
[5:09:19]
funds in tax revenue from
[5:09:20]
the selling of addictive
[5:09:20]
products.
[5:09:21]
The money being brought in does
[5:09:24]
not cover the costs of
[5:09:25]
addiction of addiction
[5:09:25]
treatment let alone any any
[5:09:29]
other harm psychosis, cannabis
[5:09:30]
hyperemesis pediatric exposures
[5:09:35]
and injuries while intoxicated.
[5:09:35]
Thank you for hearing my
[5:09:36]
concern.
[5:09:40]
Thank you.
[5:09:41]
Our next speakers and Albania's
[5:09:53]
please begin.
[5:10:00]
>> Andrew Ibanez I cannot
[5:10:00]
unmute for you must press on
[5:10:01]
Hear me?
[5:10:03]
Yup Go ahead please.
[5:10:04]
>> Thank you.
[5:10:04]
Good evening.
[5:10:08]
Presenter and council members.
[5:10:09]
My name is Andrew Ibanez.
[5:10:10]
I lived in District four for 39
[5:10:10]
years and I'm a cannabis social
[5:10:12]
equity applicant.
[5:10:13]
I oppose the proposal.
[5:10:14]
I support maintaining expanded
[5:10:17]
access to cannabis delivery
[5:10:18]
services in the city of San
[5:10:18]
Diego.
[5:10:22]
Cannabis delivery provides a
[5:10:23]
safe, convenient and legal
[5:10:23]
option for adults, seniors,
[5:10:27]
people with disabilities,
[5:10:27]
veterans and patients and
[5:10:28]
residents who have difficulty
[5:10:31]
traveling to a dispensary or a
[5:10:32]
storefront.
[5:10:32]
Delivery services allows
[5:10:36]
consumers to receive product at
[5:10:37]
home rather than driving to a
[5:10:37]
retail location.
[5:10:41]
Licensed delivery operators are
[5:10:41]
regulated subject to testing
[5:10:42]
and tracking requirements and
[5:10:43]
contribute tax revenue to
[5:10:45]
the city.
[5:10:46]
Policy should encourage
[5:10:47]
consumers to the to use
[5:10:47]
the regulated market rather
[5:10:50]
than care or create barriers
[5:10:51]
that MAY unintentionally push
[5:10:55]
customers toward unlicensed
[5:10:55]
operators.
[5:10:56]
As the city considers new
[5:10:57]
regulations, I encourage you to
[5:11:01]
support a framework that
[5:11:01]
protects public safety while
[5:11:02]
preserving reasonable access to
[5:11:06]
legal cannabis delivery
[5:11:06]
services.
[5:11:07]
Regulation should be fair,
[5:11:07]
practical and designed to
[5:11:08]
promote compliance.
[5:11:10]
Thank you.
[5:11:11]
>> That does conclude your
[5:11:11]
time.
[5:11:17]
Madison please begin.
[5:11:17]
Hi.
[5:11:18]
Good evening.
[5:11:21]
Thank you for the chance to
[5:11:22]
speak.
[5:11:22]
I support this ordinance
[5:11:23]
because strong enforcement of
[5:11:27]
cannabis regulations is
[5:11:27]
essential to protecting young
[5:11:28]
people in our city.
[5:11:32]
We are not talking about
[5:11:32]
delivery of ice cream here.
[5:11:33]
When delivery of a drug like
[5:11:37]
cannabis is allowed it means
[5:11:37]
products are spreading
[5:11:38]
throughout our community that
[5:11:39]
contain extremely high levels
[5:11:42]
of thc and have been linked to
[5:11:43]
increased risks of psychosis
[5:11:46]
cannabis use disorder, cyclic
[5:11:47]
vomiting syndrome, impaired
[5:11:47]
driving and other serious
[5:11:51]
health concerns particularly
[5:11:51]
for adolescents.
[5:11:55]
That is why enforcement matters
[5:11:56]
Creating a local permit
[5:11:57]
requirement for cannabis
[5:12:00]
delivery businesses gives
[5:12:01]
the city a tool to identify
[5:12:02]
operators, monitor compliance
[5:12:06]
and take action When violation
[5:12:06]
occurs.
[5:12:07]
Strong penalties are also
[5:12:11]
important because regulations
[5:12:11]
without meaningful enforcement
[5:12:12]
are simply suggestions.
[5:12:16]
Every gap in enforcement
[5:12:16]
creates opportunities for
[5:12:17]
unlawful activity and increases
[5:12:21]
the risk that harmful cannabis
[5:12:21]
products will reach our youth.
[5:12:22]
>> Thank you.
[5:12:22]
Thank you.
[5:12:25]
Next is Becky Wrap.
[5:12:39]
Please begin.
[5:12:40]
My name is back.
[5:12:45]
You up and I'm very concerned.
[5:12:45]
The city is considering
[5:12:48]
expanding delivery regulations
[5:12:53]
before providing or proving
[5:12:54]
that existing regulations have
[5:12:55]
been effectively enforced.
[5:12:58]
For years residents have been
[5:12:59]
requesting a comprehensive
[5:12:59]
audit of San Diego's marijuana
[5:13:03]
program including the number of
[5:13:04]
businesses operating,
[5:13:04]
the amount of tax revenue being
[5:13:05]
collected and whether
[5:13:08]
businesses are complying with
[5:13:08]
local regulations.
[5:13:09]
This report repeatedly
[5:13:12]
references noncompliance but
[5:13:13]
does not include important
[5:13:14]
enforcement data to support
[5:13:17]
the need that this new permit
[5:13:18]
program is needed.
[5:13:18]
How many violations have been
[5:13:22]
identified?
[5:13:23]
How much unpaid tax has been
[5:13:24]
recovered?
[5:13:24]
And the delivery operators have
[5:13:27]
been investigating.
[5:13:28]
A report doesn't tell us that
[5:13:28]
before creating new permits and
[5:13:32]
expanding the city's marijuana
[5:13:32]
framework.
[5:13:33]
The city should first provide a
[5:13:37]
full accounting of the current
[5:13:37]
system.
[5:13:38]
If we don't know whether
[5:13:38]
existing businesses are
[5:13:41]
complying with the rules or
[5:13:42]
paying the taxes they owe.
[5:13:42]
>> How can we justify
[5:13:43]
expanding?
[5:13:43]
Thank you.
[5:13:48]
That is include your time.
[5:13:49]
>> Please note that the five
[5:13:54]
minute timer has concluded with
[5:13:54]
six speakers left in the queue.
[5:13:58]
No other speakers will be taken
[5:13:59]
Next up is Peggy Walker.
[5:14:03]
Please begin.
[5:14:08]
Oh, good evening, COUNCILMAN
[5:14:08]
Campo.
[5:14:09]
I represent parents and thank
[5:14:10]
you and support this.
[5:14:13]
Strict controls are needed
[5:14:14]
because bad players on both
[5:14:18]
the seller and consumer sides
[5:14:18]
ignore illegal delivery
[5:14:19]
requirements.
[5:14:22]
Delivery services Too often
[5:14:23]
cheat the city of taxes put
[5:14:24]
youth in jeopardy of harmful
[5:14:28]
underage use, fail to make I.D.
[5:14:28]
Checks and deliver quantities
[5:14:29]
not allowed by state
[5:14:32]
regulations.
[5:14:33]
A Bay Area delivery company was
[5:14:37]
recently exposed for leaking
[5:14:37]
their delivery databases
[5:14:42]
containing customer names, home
[5:14:42]
addresses, even medical data.
[5:14:47]
Consumers should be made aware
[5:14:47]
of these risks.
[5:14:48]
An official list posted online
[5:14:52]
of all future San Diego license
[5:14:52]
delivery services would be
[5:14:57]
helpful so that consumers can
[5:14:57]
know that their deliveries are
[5:14:58]
from permitted vendors.
[5:15:02]
Thank you.
[5:15:07]
>> Thank you.
[5:15:08]
Next up is Peggy Walker.
[5:15:15]
Please begin.
[5:15:15]
>> Hi.
[5:15:16]
That was me.
[5:15:16]
I just spoke.
[5:15:17]
Sorry.
[5:15:19]
I apologize.
[5:15:21]
Next up is Kathleen Leavitt.
[5:15:27]
Please begin.
[5:15:27]
>> Thank you.
[5:15:28]
Thank you.
[5:15:31]
To counsel Patrick Campo for
[5:15:32]
his good intentions a proactive
[5:15:33]
step that should be taken
[5:15:37]
before proposing any additional
[5:15:37]
programs like this would be to
[5:15:41]
do an analysis of
[5:15:42]
the businesses already
[5:15:42]
permitted.
[5:15:43]
Are they compliant?
[5:15:47]
Are they paying their taxes?
[5:15:47]
Many businesses already see
[5:15:48]
city codes and suggestions
[5:15:52]
rather than requirements.
[5:15:52]
They do not see meaningful
[5:15:56]
consequences to businesses
[5:15:57]
found to be out of compliance.
[5:15:58]
It is no surprise many
[5:16:02]
marijuana businesses have gone
[5:16:02]
out of business because
[5:16:03]
unpermitted marijuana
[5:16:06]
businesses always have and
[5:16:07]
always will take business from
[5:16:08]
permitted business.
[5:16:11]
This permanent undermines
[5:16:12]
the city's regulatory framework
[5:16:16]
and disadvantages compliant
[5:16:16]
businesses.
[5:16:17]
That being said, there is
[5:16:21]
nothing good about compliant or
[5:16:22]
permitted businesses any more
[5:16:23]
than unpermitted businesses.
[5:16:26]
The rent seeking revenues over
[5:16:27]
public safety is never going to
[5:16:31]
end well for the city.
[5:16:32]
>> That does conclude your
[5:16:32]
time.
[5:16:33]
Thank you.
[5:16:33]
Next up J.D. String Please
[5:16:38]
begin.
[5:16:39]
>> Good afternoon, San Diego
[5:16:39]
City Council.
[5:16:44]
Thank you to City Council
[5:16:44]
person Carpio for considering
[5:16:49]
this at his NOVEMBER adr
[5:16:49]
meeting.
[5:16:50]
I'm sorry Some of us maybe who
[5:16:53]
spoke didn't have an
[5:16:54]
opportunity to hear
[5:16:54]
the discussion then I think we
[5:16:55]
would have a better
[5:16:58]
understanding of what the goal
[5:16:58]
was behind this policy.
[5:17:03]
Some intent to level
[5:17:04]
the playing field for those who
[5:17:08]
actually have permits in
[5:17:09]
the city of San Diego to
[5:17:09]
deliver and those who do not
[5:17:12]
and are coming in and we don't
[5:17:13]
know who they are, where
[5:17:14]
they're from, what
[5:17:14]
the condition of the products
[5:17:18]
are And it looks like and
[5:17:19]
the example on the PowerPoint,
[5:17:22]
the one given it's not even
[5:17:22]
registered by the city, by
[5:17:27]
the state, by dcc.
[5:17:28]
So we need to really understand
[5:17:28]
who it is just driving around
[5:17:32]
our neighborhoods, dropping off
[5:17:32]
pot.
[5:17:33]
I must say, however, in doing a
[5:17:36]
search I found the city of
[5:17:37]
Oceanside tried to do the same
[5:17:41]
thing and get a registry of
[5:17:42]
deliveries and then when signed
[5:17:42]
out.
[5:17:42]
>> Thank you.
[5:17:45]
That does conclude your time.
[5:17:46]
Next is Cannabis Education
[5:17:46]
Project.
[5:18:00]
Please begin Cannabis Education
[5:18:00]
Project.
[5:18:03]
Please begin.
[5:18:12]
I see you're unmuted.
[5:18:16]
One more time Cannabis
[5:18:21]
Education Project.
[5:18:25]
Okay, we'll have to move on.
[5:18:26]
Next up Shelby Huffaker.
[5:18:33]
Please begin that evening.
[5:18:34]
My name is Shelby and I'm a
[5:18:38]
board member of the San Diego
[5:18:39]
chapter of Americans for Safe
[5:18:39]
Access, a national nonprofit
[5:18:42]
advancing Safe Access to
[5:18:43]
cannabis for therapeutic use
[5:18:43]
and research.
[5:18:44]
I urge you to reject this
[5:18:48]
proposed cannabis delivery
[5:18:48]
permit and enforcement
[5:18:49]
enforcement ordinance.
[5:18:52]
It is redundant with state law
[5:18:53]
and appearance designed to let
[5:18:54]
San Diego's existing cannabis
[5:18:57]
monopoly block competition from
[5:18:58]
the county social equity
[5:18:59]
program which is just weeks
[5:18:59]
away from an anticipated vote
[5:19:02]
on the code's needed to
[5:19:03]
implement it.
[5:19:06]
If you move forward please make
[5:19:06]
two changes.
[5:19:07]
First, eliminate the private
[5:19:08]
right of action which would let
[5:19:10]
anyone including monopoly
[5:19:11]
members and opponent opponents
[5:19:15]
of cannabis legalization sue
[5:19:16]
compliant operators and clog
[5:19:17]
our courts.
[5:19:20]
Second, please exempt operators
[5:19:21]
already licensed by the county
[5:19:22]
from this duplicative permitted
[5:19:22]
system.
[5:19:25]
Please reject this ordinance or
[5:19:26]
adopt these fixes.
[5:19:26]
>> Thank you.
[5:19:28]
Thank you.
[5:19:28]
>> Kelly Hayes.
[5:19:33]
Please begin.
[5:19:34]
>> Hi.
[5:19:34]
Good evening, Council members.
[5:19:35]
My name is Kelly Hayes.
[5:19:38]
i'm a resident of District two
[5:19:39]
and an attorney who specializes
[5:19:42]
in working with the cannabis
[5:19:43]
businesses.
[5:19:43]
I've been working with this
[5:19:44]
industry since 2014.
[5:19:48]
And I've seen a lot of issues
[5:19:48]
with this ordinance and I
[5:19:52]
strongly oppose it.
[5:19:52]
First requiring delivery
[5:19:53]
businesses to obtain a separate
[5:19:57]
San Diego permit is unworkable
[5:19:58]
in the city.
[5:19:58]
The city is going to have no
[5:20:02]
way to police and enforce this
[5:20:02]
requirement.
[5:20:03]
State regulations require
[5:20:07]
delivery vehicles to be in
[5:20:08]
unmarked and indistinguishable
[5:20:11]
from any other type of vehicle
[5:20:12]
The effect that this is going
[5:20:13]
to have on staff is going to be
[5:20:16]
burdensome and it's going to
[5:20:17]
accomplish absolutely nothing
[5:20:17]
nothing that you're trying to
[5:20:18]
achieve.
[5:20:21]
Additionally, the private right
[5:20:22]
to action is duplicative.
[5:20:23]
There's already state law that
[5:20:26]
allows for this type of private
[5:20:26]
action And what you're
[5:20:30]
proposing is going to create
[5:20:31]
meritless cases and clog our
[5:20:36]
court system.
[5:20:36]
>> So I strongly ask you to
[5:20:37]
oppose this.
[5:20:37]
Thank you.
[5:20:40]
That does conclude your time.
[5:20:41]
And that concludes the public
[5:20:42]
testimony on item 2o2.
[5:20:45]
All right.
[5:20:45]
Thank you, Deputy Clerk.
[5:20:46]
Thank you.
[5:20:46]
Everybody that spoke or called
[5:20:50]
in will now turn it over to
[5:20:50]
council members for questions,
[5:20:51]
comments and entertain a motion
[5:20:55]
and we'll start with
[5:20:55]
the proponent.
[5:20:56]
Council Member Campo Thank you
[5:20:57]
Council PRESIDENT And thank you
[5:20:59]
to my staff for the good work
[5:20:59]
on this.
[5:21:00]
Thank you to all the members of
[5:21:01]
the public for their
[5:21:01]
participation today.
[5:21:04]
I want to specifically thank
[5:21:05]
the cw workers who came to
[5:21:05]
speak directly.
[5:21:06]
Members of the Public Labor
[5:21:08]
Council and members of sounds
[5:21:09]
like almost every district for
[5:21:13]
explaining why today's action
[5:21:13]
is so important.
[5:21:14]
It's abundantly clear that
[5:21:18]
illicit cannabis delivery is a
[5:21:19]
problem in the city.
[5:21:19]
It's a problem that we haven't
[5:21:23]
had a solution to address
[5:21:24]
because it's difficult to
[5:21:24]
address.
[5:21:25]
It's layered with state and
[5:21:28]
local laws and enforcement
[5:21:29]
Actions span from the state to
[5:21:29]
city attorneys, local law
[5:21:33]
enforcement, the city
[5:21:34]
administrators and city
[5:21:34]
administrators involved.
[5:21:35]
Land use enforcement in some
[5:21:38]
cases.
[5:21:38]
So from a regulatory
[5:21:39]
perspective it is very
[5:21:42]
difficult to get this right.
[5:21:43]
But we're here.
[5:21:43]
The city regulates cannabis
[5:21:47]
delivery from businesses inside
[5:21:48]
city limits.
[5:21:48]
And if they don't follow
[5:21:49]
the rules, they don't get to
[5:21:49]
operate in the city.
[5:21:52]
They have a physical building
[5:21:53]
and a permit to operate it.
[5:21:54]
But what about the businesses
[5:21:57]
that come in, drive in, deliver
[5:21:58]
legally by state or local laws
[5:22:01]
and then leave?
[5:22:02]
To test if this is actually
[5:22:06]
happening you could right now
[5:22:06]
order cannabis to be delivered
[5:22:07]
to city hall particularly out
[5:22:11]
of city company is advertising
[5:22:12]
on Weed Maps an online platform
[5:22:16]
for marketing cannabis products
[5:22:17]
and has their location listed
[5:22:21]
as the Gaslamp District right
[5:22:22]
here in downtown Shouldn't
[5:22:22]
surprise anybody.
[5:22:26]
We don't have any licensed
[5:22:26]
cannabis outlets in
[5:22:27]
the Gaslamp.
[5:22:30]
This business is listed on
[5:22:31]
the state's Department of
[5:22:31]
Cannabis Control website as a
[5:22:35]
state licensed delivery
[5:22:36]
business but their licensed
[5:22:40]
operations is in Kern County.
[5:22:40]
That means in order to abide by
[5:22:41]
state law they would have to
[5:22:44]
wait until an order is made
[5:22:45]
before they dispatch to deliver
[5:22:45]
with a driver that delivery
[5:22:50]
driver has to be a direct
[5:22:51]
employee of that company.
[5:22:51]
They have to provide specific
[5:22:54]
details on every receipt with
[5:22:55]
information about that company
[5:22:56]
and they have to pay all
[5:22:59]
applicable taxes.
[5:23:00]
And they're definitely not
[5:23:00]
allowed to deliver to
[5:23:03]
government property.
[5:23:04]
You can place an order and have
[5:23:05]
a delivery within two hours
[5:23:05]
from this company.
[5:23:09]
No local taxes are applied on
[5:23:09]
their receipt.
[5:23:10]
No state license number is
[5:23:13]
listed on that receipt.
[5:23:14]
That means that someone is
[5:23:18]
either driving very fast from
[5:23:18]
Kern County, the nearest city
[5:23:22]
of which is 191 miles away or
[5:23:23]
they're storing cannabis
[5:23:23]
products illegally within our
[5:23:27]
city limits and that business
[5:23:28]
is clearly not abiding by
[5:23:29]
worker and consumer safety
[5:23:29]
protections.
[5:23:33]
So I understand we have a
[5:23:33]
current process for cannabis
[5:23:34]
delivery services entering city
[5:23:34]
limits.
[5:23:37]
They are required to register
[5:23:38]
for a business tax certificate
[5:23:38]
and pay applicable taxes but
[5:23:39]
they're not required to provide
[5:23:42]
any proof of their state
[5:23:42]
license.
[5:23:43]
So if we know that a business
[5:23:43]
is violating their state
[5:23:47]
license requirements, we can't
[5:23:48]
really do anything about it
[5:23:48]
yet.
[5:23:49]
And in this scenario let's say
[5:23:51]
we suspect that a facility is
[5:23:52]
within city limits is being
[5:23:53]
used to store cannabis products
[5:23:56]
for delivery.
[5:23:56]
It's not allowed under current
[5:23:57]
code.
[5:23:57]
We can provide notice and send
[5:24:01]
in code enforcement cpd to
[5:24:02]
investigate.
[5:24:02]
Apply penalties If they have
[5:24:03]
information on that business we
[5:24:06]
could file a complaint with
[5:24:06]
Department of Cannabis Control
[5:24:10]
to apply penalties or revoke a
[5:24:10]
permit if the business has one.
[5:24:11]
But we know that revoking a
[5:24:12]
permit or having an expired
[5:24:14]
permit does not stop that
[5:24:15]
business entity from continuing
[5:24:16]
to advertise and deliver
[5:24:19]
cannabis in the city of San
[5:24:19]
Diego.
[5:24:20]
So it's safe to say our current
[5:24:21]
resources are at capacity at
[5:24:24]
addressing this kind of illegal
[5:24:24]
commercial activity.
[5:24:25]
And when we've exhausted our
[5:24:28]
administrative options,
[5:24:29]
the city attorney's office can
[5:24:30]
still file a civil action in
[5:24:30]
court against the business.
[5:24:33]
But it would be a matter of
[5:24:34]
prioritizing this this issue
[5:24:35]
over others because our staff
[5:24:38]
capacity is limited.
[5:24:39]
And from what I've heard from
[5:24:40]
the workers and businesses and
[5:24:43]
members of the public is that
[5:24:43]
this activity goes on and on
[5:24:44]
and on.
[5:24:44]
>> While the government
[5:24:47]
agencies tasked with regulation
[5:24:48]
they're unable to enforce
[5:24:48]
the law.
[5:24:52]
My experience as a litigator
[5:24:53]
and prosecutor the private
[5:24:53]
right of action is a very
[5:24:54]
commonly used enforcement
[5:24:56]
mechanism.
[5:24:57]
It's primarily used in other
[5:24:58]
areas of law labor law for
[5:24:58]
example.
[5:25:02]
But the concept is very simple.
[5:25:02]
When a party is harmed by
[5:25:03]
the violation of a law they can
[5:25:07]
ask the court to enforce it.
[5:25:08]
This is not a unique remedy.
[5:25:11]
It's not a unique tool.
[5:25:12]
It's not just any member of
[5:25:13]
the public, by the way, a party
[5:25:16]
that's harmed by the violation
[5:25:17]
and in this case a legal
[5:25:17]
business.
[5:25:18]
Unions representing those
[5:25:21]
workers and those businesses
[5:25:21]
right here in San Diego.
[5:25:22]
So a court can evaluate that
[5:25:26]
evidence, determine penalties
[5:25:26]
if they determine the law was
[5:25:27]
not followed.
[5:25:30]
So what does this accomplish
[5:25:31]
and what does success look like
[5:25:32]
if we implement this?
[5:25:35]
First we incentivize legal
[5:25:36]
commercial activity by raising
[5:25:40]
the cost of noncompliance.
[5:25:41]
Registering for a business
[5:25:42]
permit means filling out a form
[5:25:46]
or you run The risk of high
[5:25:46]
penalties is not a high bar
[5:25:50]
that we are setting here
[5:25:51]
penalties that can actually
[5:25:52]
outweigh the financial benefit
[5:25:55]
to skip On hiring employees and
[5:25:56]
obtaining and renewing required
[5:25:56]
permits.
[5:25:57]
That's what we're looking at.
[5:26:00]
With this we intend to be clear
[5:26:01]
that any cannabis business
[5:26:01]
operating within our
[5:26:02]
jurisdiction must make
[5:26:05]
themselves known.
[5:26:06]
They must follow the laws.
[5:26:11]
As I pointed out earlier, a
[5:26:11]
receipt from a cannabis company
[5:26:12]
and current registered in Kern
[5:26:13]
County and delivering in
[5:26:15]
Gaslamp advertising Gaslamp as
[5:26:15]
violating multiple laws.
[5:26:19]
And if the business continues
[5:26:20]
to ignore local and state laws
[5:26:21]
they can then be held
[5:26:21]
accountable.
[5:26:24]
But I think we ought not reward
[5:26:25]
multimillion dollar companies
[5:26:28]
that decide it's more
[5:26:29]
profitable to ignore the law
[5:26:30]
which means ignoring worker
[5:26:33]
protections.
[5:26:34]
I think we should protect
[5:26:38]
workers.
[5:26:39]
These companies are ignoring
[5:26:39]
community protections where
[5:26:40]
around where cannabis can be
[5:26:40]
sold.
[5:26:43]
I think we should maintain
[5:26:43]
the system that we've put up in
[5:26:44]
San Diego that allow outside
[5:26:50]
entities to bring it down.
[5:26:51]
>> The public who voted to
[5:26:51]
allow commercial cannabis under
[5:26:55]
the expectation that tax
[5:26:56]
revenue would return back to
[5:26:56]
them.
[5:26:57]
That's what they wanted.
[5:27:00]
Right now it's not working.
[5:27:01]
So this proposal helps us
[5:27:05]
collect that as well.
[5:27:06]
So with that I understand that
[5:27:06]
to make this mechanism
[5:27:09]
successful we also need to
[5:27:10]
properly implement a permit or
[5:27:11]
a business registration
[5:27:14]
whichever way you want to
[5:27:14]
describe it.
[5:27:15]
We need to bring a fee study in
[5:27:16]
order to determine the cost
[5:27:19]
recoverable amount for
[5:27:20]
administering the permit.
[5:27:21]
And if we're asking businesses
[5:27:24]
to submit a copy of their state
[5:27:25]
license or business certificate
[5:27:26]
and information on their owners
[5:27:29]
employees I would imagine that
[5:27:30]
would align with the amount for
[5:27:31]
the business tax certificate
[5:27:33]
which is around $34 right now
[5:27:33]
for small businesses or $125
[5:27:34]
for larger businesses.
[5:27:38]
I see Good is here from
[5:27:39]
the mayor's office.
[5:27:42]
I need the mayor's commitment
[5:27:43]
via you that we will that you
[5:27:47]
will work to bring back bring
[5:27:48]
forward the appropriate fee
[5:27:48]
study to determine the exact
[5:27:49]
amount of what this business
[5:27:52]
permit will cost.
[5:27:52]
Yes, Councilmember, thank you
[5:27:53]
for that.
[5:27:53]
You do have our commitment to
[5:27:57]
bring that forward post second
[5:27:58]
reading at this House is today.
[5:27:59]
City Treasurer's office will
[5:28:01]
initiate the process to conduct
[5:28:02]
the fee study and then bring
[5:28:03]
that forward for council
[5:28:05]
consideration later this fall.
[5:28:06]
>> Okay, very good.
[5:28:07]
Also with along those same
[5:28:11]
lines working with staff to
[5:28:11]
ensure that neighboring
[5:28:12]
jurisdictions and
[5:28:12]
the Department of Cannabis
[5:28:16]
Control are properly notified
[5:28:16]
of those changes to our
[5:28:17]
cannabis regulations and
[5:28:20]
understand how to register
[5:28:21]
through the mechanism that will
[5:28:22]
be created by our departments.
[5:28:23]
Yes and I think that be an all
[5:28:25]
hands effort for parties that
[5:28:26]
touch this including dsd, cpd,
[5:28:27]
our government affairs team.
[5:28:30]
So you have our full support
[5:28:30]
there as well.
[5:28:31]
Okay.
[5:28:31]
With that council PRESIDENT,
[5:28:34]
I'm happy to move approval of
[5:28:35]
staff's recommendation on this.
[5:28:35]
Thank you.
[5:28:36]
All right.
[5:28:37]
So we have a motion by Council
[5:28:37]
member Campo to move the staff
[5:28:40]
recommendation and we'll go
[5:28:40]
next to council member Von
[5:28:41]
Wolpert.
[5:28:41]
>> Thank you.
[5:28:44]
And thank you very much to
[5:28:44]
staff for bringing this forward
[5:28:45]
today and thank you for
[5:28:46]
the hard work you've done it
[5:28:49]
and thank you to the public for
[5:28:49]
commenting and thank you to our
[5:28:50]
hard working folks that you
[5:28:50]
have.
[5:28:54]
C.W. Who have negotiated some
[5:28:54]
of the very first labor
[5:28:55]
contracts in the cannabis
[5:28:58]
industry.
[5:28:59]
I mean things like a paid day
[5:29:03]
off to go to the doctor and
[5:29:04]
fair wages And if you're
[5:29:04]
injured at the job that your
[5:29:05]
employer actually has to pay
[5:29:08]
worker's comp these are
[5:29:09]
the things that these workers
[5:29:10]
are asking for.
[5:29:12]
And I think that that should be
[5:29:13]
the bare minimum And it really
[5:29:17]
is very hard for cannabis
[5:29:18]
businesses who are lawfully
[5:29:18]
operating including the new
[5:29:22]
cannabis businesses who will be
[5:29:23]
permitted under the county's
[5:29:23]
equity program.
[5:29:27]
You too can be undercut by
[5:29:28]
the folks who operate down
[5:29:29]
the gas gaslamp from Kern
[5:29:29]
County by folks operating
[5:29:32]
outside of our state.
[5:29:33]
Even once you're licensed by
[5:29:37]
the cannabis equity program in
[5:29:38]
the county you too can use this
[5:29:38]
law If you locate in San Diego
[5:29:42]
and with the private right of
[5:29:42]
action it grants attorney's
[5:29:46]
fees and costs to
[5:29:46]
the prevailing party So you
[5:29:47]
don't need to hire an attorney.
[5:29:48]
You can get one to do it On
[5:29:51]
contingency.
[5:29:52]
It will be available to any
[5:29:52]
licensed business provider here
[5:29:53]
and you all can take on these
[5:29:56]
guys here or girls whoever who
[5:29:57]
are clearly coming from outside
[5:29:59]
the city and the county to come
[5:30:04]
undercut our local businesses.
[5:30:05]
That said, anyone who delivers
[5:30:09]
a product for sale in the city
[5:30:09]
of San Diego needs to be paying
[5:30:13]
sales tax and in this case
[5:30:14]
cannabis tax in the city.
[5:30:15]
You know we have folks who
[5:30:18]
deliver for Amazon or Target or
[5:30:19]
Walmart And if the point of
[5:30:20]
sale is here in the city of San
[5:30:20]
Diego, they have to pay their
[5:30:21]
taxes here even if their
[5:30:23]
business is located outside of
[5:30:24]
it.
[5:30:25]
This is a basic tax revenue
[5:30:28]
requirement.
[5:30:29]
It's a licensure requirement
[5:30:30]
and we require all businesses
[5:30:30]
to do this.
[5:30:32]
So I will second the motion.
[5:30:32]
>> Thank you.
[5:30:33]
All right.
[5:30:33]
Thank you.
[5:30:37]
Council member Von Wilpert.
[5:30:38]
So we have a motion by
[5:30:38]
Councilmember Campos, second by
[5:30:41]
Council member Von Wolpert to
[5:30:41]
move the staff recommendation
[5:30:42]
and we'll go next to Council
[5:30:45]
member Foster and thank you
[5:30:51]
Council PRESIDENT And I guess I
[5:30:56]
just need to reiterate and just
[5:31:03]
state for the record that I
[5:31:04]
think the discourse that you
[5:31:08]
are hearing stems from one
[5:31:09]
problem and that is we move
[5:31:13]
forward with cannabis without
[5:31:17]
being inclusive on its onset
[5:31:18]
And I think that was the worst
[5:31:23]
thing that we could have done.
[5:31:24]
I appreciate the $20 million in
[5:31:28]
revenue or roughly thereof that
[5:31:28]
we have been receiving.
[5:31:32]
I appreciate the good jobs as
[5:31:33]
our partners have been working
[5:31:40]
to make sure that we have good
[5:31:41]
employee benefits and and
[5:31:46]
workers rights But we did a
[5:31:46]
disservice.
[5:31:50]
We excluded a community that
[5:31:59]
has and still to this day is
[5:32:02]
continuing to have challenges
[5:32:12]
as we look at um how folks can
[5:32:13]
have what we call a life in
[5:32:18]
this United States of America
[5:32:22]
and this is something that we
[5:32:26]
have to stop.
[5:32:27]
It sounds like just from
[5:32:31]
the line of I guess from my
[5:32:31]
colleague MR. Campo
[5:32:32]
Councilmember Campo that there
[5:32:36]
is work that needs to come back
[5:32:36]
as we talk about establishing
[5:32:37]
permit fees.
[5:32:41]
It sounds like it should not
[5:32:41]
exceed $125.
[5:32:46]
Is that what I'm understand on
[5:32:47]
the onset of this conversation?
[5:32:47]
That's correct.
[5:32:49]
Okay.
[5:32:55]
Um and I guess if you can help
[5:32:59]
me to understand what does this
[5:32:59]
mean as I hear the public
[5:33:00]
comment, what does this mean
[5:33:04]
for folks that are part of this
[5:33:08]
county's program?
[5:33:08]
Is this excluding those
[5:33:09]
individuals from being able to
[5:33:13]
participate in the cannabis
[5:33:14]
industry that would like to do
[5:33:18]
delivery?
[5:33:19]
Yeah.
[5:33:19]
Thank you for the question.
[5:33:20]
Um, as the ordinance is written
[5:33:23]
now the county social equity
[5:33:24]
operators or any operator
[5:33:28]
that's delivering from outside
[5:33:29]
the city would be required to
[5:33:30]
fill out the permit form which
[5:33:33]
would be an online
[5:33:33]
registration.
[5:33:34]
And I think the thing that
[5:33:38]
we're hearing and discussion is
[5:33:38]
the fee amount and does that
[5:33:39]
fee represent a barrier?
[5:33:43]
And so like you said,
[5:33:44]
the second part of this is to
[5:33:44]
bring that fee study forward
[5:33:48]
and to determine the cost of
[5:33:49]
service and also explore
[5:33:53]
options for whether that be
[5:33:58]
waivers, discounted rates and
[5:33:59]
explore the possibilities
[5:33:59]
there.
[5:34:03]
But we can't determine that
[5:34:03]
feasibility without
[5:34:04]
understanding the cost to begin
[5:34:04]
with.
[5:34:09]
So we benchmark it against
[5:34:09]
the current business tax
[5:34:14]
certificate because it's a
[5:34:15]
similar mechanism of
[5:34:15]
registering providing
[5:34:16]
the information online.
[5:34:19]
It's not a land use permit
[5:34:19]
where it's going to be
[5:34:19]
intensive.
[5:34:20]
So we're thinking ballpark
[5:34:24]
can't be more than 50 to $100
[5:34:25]
but we have to be sure before
[5:34:25]
we present that information to
[5:34:29]
any other jurisdiction And also
[5:34:30]
to that we have met with
[5:34:34]
the county of San Diego over
[5:34:35]
this question and concern which
[5:34:39]
is how will the county social
[5:34:40]
equity businesses understand
[5:34:40]
the requirements when they're
[5:34:45]
navigating all of these hoops
[5:34:46]
through the county's program?
[5:34:49]
And we received their
[5:34:49]
commitment that they have a
[5:34:50]
list of the delivery operators
[5:34:54]
those Type nine licenses or
[5:34:54]
microbusinesses that will be
[5:34:55]
entering into the city and they
[5:34:59]
have a staff person ready to
[5:35:00]
assist filling out that form.
[5:35:00]
They're waiting on us to get
[5:35:04]
that information to them So we
[5:35:05]
will work extensively to make
[5:35:10]
sure that this ordinance
[5:35:10]
targets who is intended and is
[5:35:11]
not hurt, who it's not intended
[5:35:15]
to hurt.
[5:35:15]
Okay.
[5:35:18]
I appreciate that clarification
[5:35:25]
I mean I guess I will turn to
[5:35:26]
the city attorney as I am as my
[5:35:30]
office is working on a cannabis
[5:35:35]
equity policy as we speak.
[5:35:36]
And I will say that we have had
[5:35:41]
conversations with other
[5:35:42]
agencies and in one being Long
[5:35:46]
Beach on that we've had some
[5:35:47]
extensive conversations with as
[5:35:48]
we talk about the cannabis
[5:35:52]
industry and impacted folks and
[5:35:52]
barriers.
[5:35:53]
And one thing that did come
[5:35:57]
about that conversation as we
[5:35:58]
talk about cannabis equity is
[5:36:03]
the importance of delivery and
[5:36:07]
delivery services.
[5:36:09]
Um it is a lot different than
[5:36:13]
trying to enter the market just
[5:36:14]
establishing a brick and mortar
[5:36:19]
type process.
[5:36:19]
Um just evening I'm going to
[5:36:24]
take out what the cost of of of
[5:36:25]
building a building or some of
[5:36:30]
that but just the cost of what
[5:36:30]
we go through from a
[5:36:35]
development services position
[5:36:36]
and that added cost and time
[5:36:37]
frame and what it does to
[5:36:41]
someone that's trying to move
[5:36:42]
forward in this industry it is
[5:36:47]
daunting and it is a a
[5:36:53]
financial burden um the way
[5:36:53]
this process is moving right
[5:36:54]
now.
[5:36:58]
And so with that MADAM City
[5:37:05]
Attorney I will say um that um
[5:37:05]
I will my office will be
[5:37:06]
contacting you as I think as we
[5:37:07]
continue to move forward with
[5:37:11]
the cannabis equity policy that
[5:37:11]
we will have to potentially at
[5:37:16]
some point um relook at this
[5:37:17]
policy that we are discussing
[5:37:22]
today and to make some
[5:37:23]
provisions based on what we are
[5:37:24]
going to be bringing forward
[5:37:28]
because I cannot bring in a
[5:37:28]
cannabis equity policy without
[5:37:34]
a delivery provision and that
[5:37:35]
was directly a result of my
[5:37:39]
conversations with Long Beach
[5:37:40]
and what was brought to my
[5:37:40]
attention.
[5:37:41]
So it is a very, very important
[5:37:45]
and critical component of a of
[5:37:45]
an equity program.
[5:37:52]
So thank you Council member
[5:37:53]
We'll be happy to discuss those
[5:37:53]
issues with Office.
[5:37:53]
All right.
[5:37:58]
Thank you With that One last
[5:37:59]
question and just going to
[5:38:03]
the eBay's comments on that
[5:38:04]
they provided it seems like
[5:38:05]
there are as we as the main
[5:38:10]
purpose that we are doing this
[5:38:11]
is trying to get our arms
[5:38:11]
around the illicit market and
[5:38:16]
especially and I'm just going
[5:38:16]
to say out of town folks, right
[5:38:17]
I'm going to isolate those mean
[5:38:20]
those bad actors.
[5:38:21]
But clearly it looks like
[5:38:22]
there's concerns on just what
[5:38:27]
that enforcement entails, what
[5:38:28]
it looks like.
[5:38:33]
Can you fill us in on just what
[5:38:34]
those at least immediate
[5:38:39]
challenges have been or what is
[5:38:39]
police referring to?
[5:38:40]
As you know, we can pass a
[5:38:41]
policy but if we can't go out
[5:38:45]
and enforce then what are we
[5:38:46]
accomplishing?
[5:38:51]
Definitely I'll I'll start and
[5:38:52]
then I can pass it over to
[5:38:52]
the departments to get their
[5:38:53]
response.
[5:38:56]
But the concerns that were
[5:38:56]
mentioned on how to enforce
[5:39:02]
delivery is essentially
[5:39:03]
the reason why we're proposing
[5:39:04]
this with the private right of
[5:39:04]
action.
[5:39:05]
Our current enforcement
[5:39:09]
capacity is exhausted.
[5:39:09]
The fda has the authority to
[5:39:10]
issue notices and I'll let them
[5:39:15]
finish on their department of
[5:39:15]
their expertise.
[5:39:20]
But their staff is limited.
[5:39:21]
The information that they have
[5:39:22]
is limited So as is they're
[5:39:26]
unable to enforce against known
[5:39:27]
delivery services especially
[5:39:28]
because they don't have a
[5:39:32]
physical place in San Diego.
[5:39:32]
So how can dsd enforce
[5:39:33]
something that's not within
[5:39:34]
their limits?
[5:39:38]
And so that's where the city
[5:39:39]
treasurer's office comes in and
[5:39:40]
they're responsible for
[5:39:40]
administering the business tax
[5:39:45]
certificate and they would be
[5:39:45]
the entity that's responsible
[5:39:46]
for enforcing this so to speak
[5:39:50]
from an administrative
[5:39:51]
perspective they would be
[5:39:52]
administering the permit.
[5:39:52]
But the question then becomes
[5:39:56]
what happens if a business
[5:39:56]
decides not to register?
[5:39:57]
They only have five registrants
[5:39:58]
so far and like you heard in
[5:40:02]
comment Oceanside set up a
[5:40:03]
registry No one registered
[5:40:04]
because they don't have an
[5:40:07]
incentive to and so that's
[5:40:08]
where the private right of
[5:40:14]
action comes into play where
[5:40:14]
the current enforcement
[5:40:15]
mechanisms aren't working.
[5:40:16]
So there wouldn't be
[5:40:16]
necessarily additional
[5:40:20]
enforcement capacity to address
[5:40:21]
that even though it repeat some
[5:40:27]
of the available improvement
[5:40:28]
mechanisms.
[5:40:28]
I would say So with that I can
[5:40:32]
turn it over to coda if you
[5:40:33]
have anything else to add.
[5:40:33]
>> Yeah.
[5:40:34]
Thanks so much.
[5:40:34]
I think that captures it pretty
[5:40:35]
accurately.
[5:40:38]
It's really to supplement and
[5:40:39]
support the current enforcement
[5:40:39]
landscape they're adding in
[5:40:43]
the Treasurer piece of it and
[5:40:44]
having essentially a checkpoint
[5:40:45]
for what we know is out there
[5:40:49]
not out there That's helpful to
[5:40:50]
support these efforts
[5:40:50]
separately from that.
[5:40:51]
But really the private right of
[5:40:52]
action is is that in the big
[5:40:55]
shiny thing through this new
[5:40:56]
proposed policy But staff is
[5:40:57]
ready to enforce this to
[5:41:03]
implement this I do have at
[5:41:03]
least open to as well as
[5:41:04]
Ricardo Ramos from city
[5:41:09]
treasurer all mine if have
[5:41:09]
really any specific questions
[5:41:10]
there But we are all on
[5:41:10]
the same page and ready to
[5:41:13]
enforce.
[5:41:13]
Okay.
[5:41:14]
Is there any I guess anything
[5:41:19]
covered in the current statutes
[5:41:20]
in regards to reporting or how
[5:41:21]
are we going to monitor Is
[5:41:21]
there any monitoring associated
[5:41:22]
with this?
[5:41:26]
How are we going to determine
[5:41:26]
how this is progressing?
[5:41:27]
There's no monitoring
[5:41:27]
requirements that are explicit
[5:41:32]
in the ordinance but because of
[5:41:33]
that it's flexible to determine
[5:41:38]
that administratively our goal
[5:41:39]
would be to have something like
[5:41:39]
the Department of Cannabis
[5:41:44]
Control They have a registry
[5:41:44]
that's available for public
[5:41:45]
viewing so you're not
[5:41:46]
contacting that staff person
[5:41:49]
and asking for that
[5:41:50]
information.
[5:41:50]
It's a readily available list
[5:41:51]
and active registry.
[5:41:56]
So in terms of records
[5:41:56]
maintenance and managing of
[5:41:57]
that we would envision an
[5:42:02]
annual updated process.
[5:42:02]
But again it's up to
[5:42:03]
the administration and
[5:42:04]
department to determine what
[5:42:07]
makes the most sense and what
[5:42:08]
would be feasible on their end.
[5:42:13]
Okay.
[5:42:14]
All right.
[5:42:14]
Thank you for that.
[5:42:15]
I guess I will fall back coda
[5:42:19]
and have some additional
[5:42:20]
conversation so I can make sure
[5:42:21]
I just understand just from a
[5:42:24]
practical perspective what this
[5:42:25]
enforcement process looks like.
[5:42:26]
It sounds like we are going to
[5:42:26]
leave it in the hands of
[5:42:31]
the public to come in and try
[5:42:37]
and do some things which is a
[5:42:37]
little concerning based on how
[5:42:43]
the commentary and the feedback
[5:42:43]
you get within the industry as
[5:42:44]
competitive as it is and
[5:42:49]
the issues that that everyone's
[5:42:54]
encountering I will support
[5:42:55]
this today as we continue to
[5:42:55]
move forward.
[5:43:01]
But again and that's what
[5:43:02]
the understanding the intent
[5:43:03]
that I will be bringing forward
[5:43:06]
the cannabis equity program
[5:43:07]
I'll be it will have a delivery
[5:43:08]
component to it And so we'll be
[5:43:13]
looking to make sure that any
[5:43:14]
necessary provisions to make
[5:43:14]
sure we are as inclusive as we
[5:43:18]
can be as we continue to move
[5:43:19]
forward and further progress
[5:43:25]
with the cannabis or cannabis
[5:43:25]
program.
[5:43:26]
And again I'm just going to
[5:43:31]
close with I am still very
[5:43:31]
disappointed that we move
[5:43:32]
forward without the cannabis
[5:43:32]
equity program.
[5:43:37]
I hate that we gave almost $1
[5:43:37]
million back which I think was
[5:43:42]
a horrible decision and really
[5:43:43]
an injustice to those folks who
[5:43:43]
have been impacted.
[5:43:49]
And just to turn this over to
[5:43:49]
what I guess I would call
[5:43:55]
corporate type folks to take
[5:43:56]
over this industry I think was
[5:43:57]
just a horrific and horrible
[5:44:00]
move by the by the city
[5:44:01]
council.
[5:44:01]
And so I'll conclude there.
[5:44:10]
Council PRESIDENT And me for
[5:44:11]
your comments.
[5:44:11]
All right.
[5:44:12]
Thank you Council my boss for
[5:44:12]
not seeing anybody Council
[5:44:15]
member Yellow River Thank you
[5:44:16]
Council PRESIDENT Thank you so
[5:44:17]
much for the presentation and
[5:44:19]
for your help Customer come to
[5:44:24]
you for bringing us forward
[5:44:25]
kind of at a high level you
[5:44:31]
know groups and businesses that
[5:44:32]
are taking advantage of San
[5:44:37]
Diego that are operating here
[5:44:38]
benefiting from the city but
[5:44:39]
not paying their fair share.
[5:44:43]
I always have a problem with
[5:44:44]
that And so I appreciate
[5:44:45]
the part of this that that aims
[5:44:49]
to address that.
[5:44:50]
I'm certainly sympathetic to
[5:44:56]
the concerns that the high
[5:44:57]
standard that you C.W., has
[5:45:02]
helped establish for what work
[5:45:03]
place conditions and wages look
[5:45:04]
like for those folks who work
[5:45:08]
in the industry that operate
[5:45:09]
outside the city.
[5:45:10]
There's operators who work or
[5:45:15]
not not only not meeting that
[5:45:16]
standard that employers
[5:45:16]
generally and we certainly do
[5:45:20]
want to reward that All of
[5:45:20]
those concerns I am very
[5:45:21]
sympathetic to I appreciate
[5:45:26]
the questions and comments from
[5:45:27]
Councilmember Foster.
[5:45:32]
I could I'm not sure I fully
[5:45:33]
understood the answer to
[5:45:33]
the question raised about input
[5:45:34]
raised about implementation
[5:45:41]
because in terms I appreciate
[5:45:42]
your your response but I will
[5:45:48]
note that dsd and Treasurer
[5:45:49]
raise concerns regarding
[5:45:49]
implementation of Proposal co
[5:45:50]
two.
[5:45:50]
You said you guys are ready to
[5:45:54]
enforce.
[5:45:55]
What's the gap there between
[5:45:55]
what the department's told
[5:46:00]
the ipa and the readiness to
[5:46:00]
enforce?
[5:46:01]
And I think there's been an
[5:46:01]
acknowledgment by the length
[5:46:05]
within the language of
[5:46:06]
the ordinance that there's a
[5:46:07]
gap between what the city can
[5:46:11]
do and what the expectation is
[5:46:12]
as far as what needs to be
[5:46:12]
done.
[5:46:18]
I think and certainly I'm not
[5:46:19]
tried to speak on your behalf I
[5:46:19]
think there was a
[5:46:20]
misunderstanding that MAY be
[5:46:24]
played out last week during one
[5:46:24]
of the public briefings that
[5:46:25]
has since been resolved where
[5:46:29]
dsd does know their role here
[5:46:30]
within this proposed ordinance
[5:46:30]
as does the city treasurer.
[5:46:31]
I think maybe there was an
[5:46:32]
assumption that more was going
[5:46:36]
to be added to their plate in
[5:46:37]
terms of something that would
[5:46:37]
require additional staff time
[5:46:41]
or budget which again wouldn't
[5:46:42]
be maybe wasn't something that
[5:46:42]
was going to be ready for
[5:46:43]
consideration today that then
[5:46:48]
resolved We do have a path
[5:46:49]
forward here that we can do
[5:46:49]
within our current capacity.
[5:46:53]
We do have a game plan moving
[5:46:54]
forward on returning with
[5:46:54]
the fee study and so we do feel
[5:46:59]
confident that our timeline and
[5:46:59]
path forward is solidified and
[5:47:00]
agreed upon by all parties and
[5:47:04]
city departments.
[5:47:05]
So if you can I ask you I mean
[5:47:10]
you put this here for a reason
[5:47:11]
Are there specific concerns
[5:47:17]
that you continue to have just
[5:47:17]
not have the information that
[5:47:18]
code is referencing here?
[5:47:24]
I'm trying to reconcile what I
[5:47:24]
know what's put here in good
[5:47:25]
faith and what we're hearing on
[5:47:26]
the dais.
[5:47:30]
I think Yes.
[5:47:30]
So so while we're discussing
[5:47:34]
with the departments both dsd
[5:47:35]
and seato just have questions
[5:47:40]
on how to enforce once we have
[5:47:41]
this registered or some
[5:47:42]
information that they might
[5:47:47]
require that it's not provided
[5:47:48]
and I defer back to the city or
[5:47:48]
what specific those are For
[5:47:49]
example type nine licenses
[5:47:53]
information that is collected
[5:47:54]
in the state That's not
[5:47:54]
something they're able to
[5:47:58]
receive as of my understanding
[5:47:59]
now But I would defer back to
[5:48:04]
the cto for specifics.
[5:48:10]
I don't have anyone we do
[5:48:11]
believe we had a deputy
[5:48:12]
director Ricardo Ramos from
[5:48:17]
city treasurer only this
[5:48:17]
recording of the see that's
[5:48:18]
what concern was just
[5:48:22]
the enforcement as referenced
[5:48:23]
earlier this is basically just
[5:48:23]
a registry So we're collecting
[5:48:26]
the data and we can actually do
[5:48:26]
that piece.
[5:48:27]
But it's the question is just
[5:48:33]
the enforcement.
[5:48:39]
So that's what the answer if
[5:48:40]
that's the question as well as
[5:48:41]
what was presented today, there
[5:48:44]
is no enforcement enforcement
[5:48:45]
that would be performed by
[5:48:46]
the city just because we have a
[5:48:50]
lack of resources to The answer
[5:48:51]
is a private right of action.
[5:48:51]
Correct.
[5:48:51]
Okay.
[5:49:06]
So okay So concerns about
[5:49:07]
the city's ability to enforce
[5:49:12]
or I should say implement
[5:49:13]
through enforcement those
[5:49:14]
remain what is solved through
[5:49:18]
salt Fourth through
[5:49:19]
the ordinance is
[5:49:19]
the expectation that that gap
[5:49:24]
will be closed through private
[5:49:24]
right of action.
[5:49:24]
That's okay.
[5:49:29]
There's like I like a consensus
[5:49:35]
of had nothing going on okay I
[5:49:36]
recognize that type of action
[5:49:41]
are a common tool and an
[5:49:41]
important tool And I just from
[5:49:42]
a general public policy
[5:49:46]
perspective I have concerns and
[5:49:47]
don't like the idea that we've
[5:49:48]
basically written off
[5:49:53]
the city's ability to to
[5:49:53]
perform a function that we
[5:49:54]
think is worth writing the law
[5:50:02]
for to the to private industry.
[5:50:03]
But that's just as a general
[5:50:03]
sense of public policy that
[5:50:09]
doesn't seem like the direction
[5:50:09]
we should head but that's a
[5:50:10]
resource issue and that will
[5:50:13]
continue to be a resource issue
[5:50:14]
until the city is properly is
[5:50:20]
properly resourced which is a
[5:50:26]
little bit of a separate issue
[5:50:27]
but not completely because as
[5:50:27]
we like we are adding things to
[5:50:31]
the city's plate while we're
[5:50:32]
also removing resources at
[5:50:32]
times and I will continue to be
[5:50:35]
frustrated by that But that's
[5:50:35]
not the decision that's in
[5:50:42]
front of us.
[5:50:42]
One other question and
[5:50:43]
COUNCILMAN Foster was going to
[5:50:46]
get to this There's four cities
[5:50:46]
referenced in the ordinance
[5:50:47]
L.A., Oakland, Long Beach and
[5:50:52]
Ventura.
[5:50:52]
Three of those four, as I
[5:50:53]
understand it have equity
[5:50:58]
programs and as I think either
[5:50:58]
of us were saying, the delivery
[5:50:59]
piece is the onramp to
[5:51:00]
the equity program in Long
[5:51:07]
Beach.
[5:51:08]
So what are and I trust
[5:51:08]
COUNCILMAN Foster to do
[5:51:09]
the work here But what what are
[5:51:13]
we kind of doing more broadly
[5:51:13]
to include the equity piece
[5:51:17]
since we're using their
[5:51:25]
regulatory framework that you
[5:51:25]
you'll have you don't have to
[5:51:26]
That's all right if you want it
[5:51:27]
by all means.
[5:51:30]
But it's also a question for
[5:51:30]
COUNCILMAN Foster and our
[5:51:31]
office has been working on
[5:51:31]
the cannabis social equity
[5:51:35]
program and proposed policy for
[5:51:36]
you know been working closely
[5:51:36]
together on that.
[5:51:37]
That was one of the first
[5:51:37]
questions asked when this
[5:51:42]
initial proposal came forward
[5:51:42]
was how it MAY incorporate an
[5:51:43]
impact Councilmember Foster's
[5:51:43]
effort.
[5:51:48]
And so as we get closer to
[5:51:48]
the finish line with that
[5:51:49]
proposed policy as this one
[5:51:50]
gets legs under it and starts
[5:51:52]
to be implemented, those are
[5:51:53]
two conversations that
[5:51:53]
absolutely have to happen
[5:51:54]
concurrently to ensure that
[5:51:55]
both are essentially feeding
[5:51:58]
into each other.
[5:51:59]
>> So okay, I appreciate that.
[5:52:04]
The last thing I will say is I
[5:52:05]
just will echo the comments
[5:52:10]
from Catherine Foster that
[5:52:16]
the further we allow those who
[5:52:16]
got their foot in the door for
[5:52:22]
the regulated industry to to to
[5:52:23]
sprint ahead, the more
[5:52:28]
difficult it is to make it
[5:52:29]
equity to eventually have an
[5:52:29]
equity program that will
[5:52:34]
actually be meaningful and we
[5:52:40]
have folks who were shut out
[5:52:41]
who were targeted just as much
[5:52:46]
for who they are and where they
[5:52:47]
were as as to what they were
[5:52:52]
actually doing.
[5:52:52]
We know the disproportionality
[5:52:53]
of the war on drugs and what
[5:52:57]
that has meant for generational
[5:52:58]
poverty, the disruption of
[5:52:58]
families and long term harm
[5:53:03]
that will take generations to
[5:53:09]
undo And it the cities the city
[5:53:10]
has made it a intentional
[5:53:15]
decision to start a race and
[5:53:16]
not even allow those folks to
[5:53:17]
not only not have their shoes
[5:53:17]
on yet they're not even at
[5:53:21]
the track yet And I think that
[5:53:22]
continues to be a concern And
[5:53:26]
my trust in Councilmember
[5:53:27]
Foster's commitment to making
[5:53:32]
sure that we get that piece up
[5:53:33]
and running in a meaningful way
[5:53:38]
is is significant.
[5:53:38]
But I understand
[5:53:39]
the frustration And so again,
[5:53:44]
the intent here I think is
[5:53:44]
there's a lot that we are
[5:53:45]
aiming to curb that I think
[5:53:49]
needs to be curbed.
[5:53:49]
I will never support the idea
[5:53:50]
of businesses operating in
[5:53:54]
the city without contributing
[5:53:54]
back to the city.
[5:53:55]
I'll never support the idea of
[5:53:55]
businesses operating in
[5:54:00]
the city and selling their
[5:54:01]
workers short and I want to
[5:54:01]
make sure that we do right by
[5:54:06]
those who were most harmed by a
[5:54:11]
war on drugs that has been
[5:54:12]
proven in every way imaginable
[5:54:16]
to have been extremely,
[5:54:17]
extremely harmful in a very
[5:54:22]
disproportionate way.
[5:54:23]
So with that I say thank you
[5:54:24]
again to Catherine Pompeo and
[5:54:27]
his team for bringing this
[5:54:28]
forward and look forward to
[5:54:28]
having the questions answered
[5:54:29]
that have been raised today.
[5:54:33]
Thank you.
[5:54:33]
>> All right.
[5:54:33]
Thank you.
[5:54:34]
Council member Eli Rivera.
[5:54:35]
We'll go back to Councilmember
[5:54:35]
Foster.
[5:54:36]
Thank you.
[5:54:38]
Just one last question
[5:54:43]
Hopefully I guess just process
[5:54:44]
wise as there is more work to
[5:54:49]
do Right.
[5:54:50]
We have this passes today I'm
[5:54:53]
assuming that's the first read
[5:54:53]
comes back for the second read.
[5:54:58]
I guess my question is timeline
[5:55:03]
wise and as we talk about cost
[5:55:09]
of service right our fee study
[5:55:09]
those types of things So what
[5:55:13]
happens when we are still going
[5:55:14]
through that process and
[5:55:15]
understanding just how this
[5:55:15]
will be operationalized?
[5:55:19]
I guess I will say And what
[5:55:19]
does that leave to
[5:55:20]
the individuals who MAY be
[5:55:24]
going through whatever they are
[5:55:24]
going through?
[5:55:29]
Let's say there is a county
[5:55:35]
equity individual who wants to
[5:55:36]
come in and sign up or do
[5:55:36]
something.
[5:55:40]
What does that do to their
[5:55:40]
business and their ability to
[5:55:45]
engage as we are trying to
[5:55:45]
figure out the operational side
[5:55:46]
of this and to where we are
[5:55:50]
able to function and understand
[5:55:51]
who you know because I'm
[5:55:52]
assuming if they go to court
[5:55:55]
who would be the legal not
[5:55:56]
legal not legal business entity
[5:56:00]
or what comes first, how does
[5:56:00]
that play out in terms of
[5:56:01]
the process of the ordinance
[5:56:05]
and its implementation?
[5:56:06]
Well, first this would be first
[5:56:09]
reading second reading 30 days
[5:56:10]
pass that implementation date
[5:56:14]
and we're asking for commitment
[5:56:14]
from the mayor's office to be
[5:56:15]
able to bring that fee study in
[5:56:19]
alignment with that timeline so
[5:56:20]
that we have certainty before
[5:56:20]
this ordinance becomes
[5:56:24]
effective because you can't
[5:56:25]
have an effective ordinance
[5:56:26]
with this tool without
[5:56:29]
the implementation and it can't
[5:56:29]
work.
[5:56:35]
So correct And I think it would
[5:56:35]
if that did happen it would
[5:56:39]
just become chaos.
[5:56:40]
So what I guess how are you
[5:56:41]
going to manage that?
[5:56:41]
What's the plan for that?
[5:56:44]
So as we go through the second
[5:56:45]
reading and if that passes
[5:56:49]
through council city treasurer
[5:56:50]
initiates the fee study item We
[5:56:51]
are up against legislative
[5:56:54]
recess at that time as well
[5:56:54]
too.
[5:56:55]
So there's a little bit of time
[5:56:56]
here after initial passage and
[5:56:59]
actual implementation.
[5:56:59]
I think during that portion as
[5:57:00]
you do have the commitment from
[5:57:01]
our office that this does not
[5:57:04]
go live until that fee is
[5:57:05]
obviously there.
[5:57:06]
And so it's a it's a
[5:57:09]
communication piece really.
[5:57:10]
And so I think the second part
[5:57:11]
of the request from
[5:57:12]
Councilmember Campo was for our
[5:57:14]
assistance in coordinating with
[5:57:15]
other regional entities as
[5:57:16]
Summer mentioned earlier
[5:57:20]
incorporating equity pieces
[5:57:20]
that the county already has in
[5:57:21]
place into that fee study I
[5:57:24]
think is is a good step forward
[5:57:25]
And so there's quite a bit of
[5:57:25]
work here after initial passage
[5:57:29]
but we got to get this passed
[5:57:30]
to initiate that work And so
[5:57:31]
it's really going to be a
[5:57:34]
communication piece from both
[5:57:35]
of our offices on this council
[5:57:36]
to educate folks on what to
[5:57:39]
expect and then have a clear
[5:57:40]
runway as the fee actually gets
[5:57:41]
adopted by this council.
[5:57:44]
We have a firm implementation
[5:57:44]
date in mind.
[5:57:44]
Okay.
[5:57:45]
So what I'm hearing is if for
[5:57:49]
some reason that commitment in
[5:57:53]
regards to operationalizing
[5:57:58]
this is not stood up in time as
[5:57:59]
we go through this second read
[5:58:03]
then are we going to pause or
[5:58:04]
timeline that correctly so that
[5:58:07]
we are not so we don't have an
[5:58:08]
ordinance that has passed and
[5:58:13]
made it through and then we are
[5:58:13]
in trouble trying to scramble
[5:58:18]
and you have this clause in
[5:58:22]
here where folks can just start
[5:58:22]
filing.
[5:58:26]
So how are we managing that?
[5:58:27]
>> You understand what I'm
[5:58:27]
asking?
[5:58:28]
I totally get what you're
[5:58:28]
saying.
[5:58:32]
So I think I think there need
[5:58:33]
to be a discussion maybe with
[5:58:36]
city attorney's office here on
[5:58:37]
if we push out a second reading
[5:58:38]
and initiate to basically take
[5:58:38]
this as the direction of
[5:58:41]
the council saying yes, proceed
[5:58:42]
with establishing the fee and
[5:58:43]
then going through that process
[5:58:46]
to conduct the study and have
[5:58:47]
the conversations I described
[5:58:49]
earlier before returning for
[5:58:50]
the second reading Similar to
[5:58:51]
how we do things if it's a
[5:58:51]
meeting confer approach or
[5:58:55]
anything like that that way we
[5:58:55]
can have a clear and clean
[5:58:56]
implementation date.
[5:58:59]
I think both options work here
[5:59:00]
but I completely understand
[5:59:00]
where your concerns are of
[5:59:04]
basically creating a
[5:59:04]
opportunity for predatory
[5:59:05]
litigation to come through and
[5:59:05]
in place.
[5:59:08]
So get that.
[5:59:09]
Okay.
[5:59:09]
Well I think that's something
[5:59:10]
that we need to make sure we
[5:59:17]
have a clear understanding and
[5:59:18]
don't get ahead of ourselves
[5:59:22]
and create other issues And
[5:59:23]
then I'm sure creating more
[5:59:27]
barriers for folks who have
[5:59:28]
already been impacted from
[5:59:32]
the war on drugs right.
[5:59:33]
So so MADAM City Attorney, I
[5:59:37]
guess I will in the city
[5:59:37]
attorney's office We'll add
[5:59:38]
that to our conversation.
[5:59:42]
Um, as we are preparing and
[5:59:43]
continuing to move this item
[5:59:46]
forward I just want to make
[5:59:46]
sure that we are not getting
[5:59:47]
ahead of ourselves and doing
[5:59:51]
more of a disservice and that
[5:59:51]
what we are trying to
[5:59:52]
accomplish with this.
[5:59:52]
Okay.
[5:59:56]
Thank you.
[5:59:56]
Council PRESIDENT All right.
[5:59:57]
Thank you Councilmember Foster
[6:00:00]
Not see anybody else and light
[6:00:02]
I'll ask a few questions of my
[6:00:06]
own one Thank you Councilmember
[6:00:09]
Camp you and your d seven team
[6:00:10]
on This is something we've
[6:00:10]
talked about.
[6:00:13]
We have acknowledged it and it
[6:00:14]
never went anywhere even though
[6:00:15]
we recognize the delivery
[6:00:18]
services were happening there
[6:00:19]
And as I think we've all kind
[6:00:23]
of landed on the inability to
[6:00:24]
enforce by city staff was
[6:00:29]
probably one of the reasons
[6:00:29]
that we were just kind of stuck
[6:00:30]
and acknowledging there was a
[6:00:33]
problem without any kind of
[6:00:34]
solution And the private right
[6:00:34]
of action is that missing piece
[6:00:38]
that allows us to actually that
[6:00:38]
will be brought forward.
[6:00:42]
So thank you for working
[6:00:43]
through it.
[6:00:43]
So the questions that go
[6:00:47]
through my mind are unlike most
[6:00:48]
ordinances and implementations
[6:00:52]
that follow afterwards, it's
[6:00:53]
the city that's doing
[6:00:57]
the enforcement.
[6:00:57]
This ordinance actually has a
[6:00:58]
private right of action.
[6:01:01]
Is there language in today's
[6:01:02]
motion that says this does not
[6:01:06]
go into effect until we
[6:01:07]
actually have a permit process
[6:01:11]
in place That's not in
[6:01:12]
the motion language but if
[6:01:16]
the maker would like to we go
[6:01:17]
to the first reading, we go to
[6:01:18]
the second reading we have an
[6:01:21]
ordinance and somebody named
[6:01:22]
Lady Named says I just found
[6:01:25]
somebody who doesn't have a
[6:01:26]
permit and compliance.
[6:01:26]
I'm going to initiate a private
[6:01:30]
right of action Go to my be
[6:01:31]
bound with operations side.
[6:01:35]
Is it a crazy idea?
[6:01:36]
I know there's some big money
[6:01:44]
there that council PRESIDENT
[6:01:45]
Are you are you asking if
[6:01:49]
the private right of action can
[6:01:50]
be a force enforced if the city
[6:01:50]
hasn't City Treasurer's office
[6:01:54]
hasn't created the license
[6:01:54]
structure or the permit
[6:01:55]
structure for an outside of
[6:01:59]
the city cannabis delivery
[6:01:59]
program or a business to
[6:02:04]
actually get and therefore
[6:02:04]
follow the law.
[6:02:05]
>> I guess that's that's
[6:02:05]
the question.
[6:02:10]
I think that it would Okay Well
[6:02:11]
first to even prove it you'd
[6:02:14]
have to prove harm or you'd
[6:02:15]
have to show that you're, you
[6:02:18]
know, harmed economically But I
[6:02:19]
guess strictly speaking it
[6:02:27]
doesn't elucidate that exactly
[6:02:28]
I mean code is committed to
[6:02:31]
the operation cited dft or city
[6:02:32]
treasurers would enforce that.
[6:02:32]
We actually had it in place
[6:02:36]
certainly Well to be very to be
[6:02:36]
very clear, there is an
[6:02:37]
enforcement mechanism for
[6:02:37]
the city that says a city
[6:02:40]
manager shall promulgate rules
[6:02:41]
and regulations to do that.
[6:02:44]
So it's not as if we're not
[6:02:45]
able to create a system for
[6:02:46]
internal administrative
[6:02:49]
enforcement.
[6:02:55]
So I would say it's almost
[6:02:56]
nonsensical to think that a
[6:02:56]
private right of action could
[6:02:59]
come forward if the city
[6:03:00]
manager, the mayor's office
[6:03:03]
through the departments hasn't
[6:03:04]
created an actual license to
[6:03:05]
apply for because how could you
[6:03:08]
possibly go forward and try to
[6:03:09]
follow the law as an outside
[6:03:10]
delivery company if it doesn't
[6:03:13]
exist?
[6:03:14]
Yeah but the city attorney
[6:03:15]
agree with him Either one of
[6:03:21]
you And as Deputy City attorney
[6:03:22]
David Carlin to respond to
[6:03:22]
that?
[6:03:25]
>> Yes, I would agree with that
[6:03:26]
proposition that's been
[6:03:30]
discussed by Councilmember You
[6:03:31]
It's a private right of action
[6:03:31]
could not be initiated until
[6:03:32]
there actually is a permit
[6:03:35]
process in place That I guess
[6:03:36]
to answer that question
[6:03:36]
specifically, there's nothing
[6:03:40]
ever to stop somebody from
[6:03:41]
filing a lawsuit as I think we
[6:03:41]
all know.
[6:03:42]
But to succeed in that lawsuit
[6:03:46]
is you'd have to have a permit
[6:03:46]
process in place to show that
[6:03:48]
somebody is in violation of it
[6:03:49]
>> That's right.
[6:03:53]
Okay.
[6:03:54]
I got three lawyers saying yes
[6:03:55]
so I'm going to back off at
[6:04:03]
the engineer the for those of
[6:04:04]
us that are not steeped in this
[6:04:07]
whole ordinance, there's no
[6:04:08]
limit on the number of permits
[6:04:09]
that can be issued.
[6:04:12]
Is that correct?
[6:04:12]
>> That's correct.
[6:04:13]
As long as it's state licensed
[6:04:16]
there was an assumption made
[6:04:17]
that you have to have both a I
[6:04:21]
think a business tax
[6:04:22]
certificate and the permit and
[6:04:27]
that the expectation is that
[6:04:28]
that permit we know what
[6:04:28]
the business tax certificate
[6:04:29]
amounts are.
[6:04:32]
It's kind of a throwaway It's
[6:04:33]
probably the cheapest fee that
[6:04:39]
we have on the books.
[6:04:44]
But if what if survey the fee
[6:04:44]
analysis comes back and said
[6:04:45]
well yeah, we're not going to
[6:04:48]
do anything for 75 bucks or 150
[6:04:48]
bucks.
[6:04:49]
I don't even know what permit
[6:04:49]
you could get for that.
[6:04:52]
And it comes back of 300 bucks
[6:04:52]
and 500 bucks.
[6:04:56]
We're just going to we could
[6:04:56]
subsidize it.
[6:04:57]
We don't have to have full cost
[6:05:01]
recovery but I just want to set
[6:05:02]
expectations that in fact it
[6:05:06]
MAY not come in that an
[6:05:06]
expensive so and then we can
[6:05:07]
deal with it because we can
[6:05:08]
subsidize it.
[6:05:11]
We don't have to charge full
[6:05:12]
cost recovery and we can do as
[6:05:12]
I think it was suggested
[6:05:16]
waivers or carve out I've done
[6:05:17]
some of those and some of
[6:05:20]
the fees.
[6:05:21]
The other question is I think
[6:05:22]
every time that we've gone and
[6:05:25]
done update our fees and
[6:05:26]
penalties, a lot of us have
[6:05:30]
grumbled that we don't think
[6:05:31]
those rates are high enough to
[6:05:34]
actually be a disincentive to
[6:05:35]
someone breaking the law.
[6:05:36]
I can think lots and lots of
[6:05:39]
examples of that.
[6:05:40]
This sets a whole new bar of
[6:05:44]
jacking up 10,000 per violation
[6:05:47]
for abatement $20,000 a day for
[6:05:48]
a civil penalty That opens up
[6:05:52]
the universe in terms of what
[6:05:52]
those can be.
[6:05:53]
Why is this okay?
[6:05:54]
And when we don't do that with
[6:05:57]
any other fee and penalty, was
[6:05:58]
that just a policy call or was
[6:06:02]
there actually something that
[6:06:03]
limited how much we could
[6:06:03]
charge?
[6:06:04]
I don't know Who wants to
[6:06:07]
answer that.
[6:06:07]
I can start with the policy
[6:06:08]
direction the fee establishment
[6:06:12]
amount at $20,000 was a policy
[6:06:12]
decision based off of the city
[6:06:16]
of L.A. Is a penalty structure.
[6:06:19]
The $10,000 value comes from
[6:06:20]
what is existing in the land
[6:06:24]
development code that was
[6:06:25]
recently updated as part of
[6:06:26]
the JUNE 8th action.
[6:06:29]
So that is the baseline figure
[6:06:34]
that we were operating off of.
[6:06:35]
I'll leave it there.
[6:06:35]
MR..
[6:06:39]
So legally again this literally
[6:06:40]
goes to the United States
[6:06:44]
Constitution and the Eighth
[6:06:45]
Amendment and the excessive
[6:06:45]
fine clause It would have to be
[6:06:49]
to be unlawful to be grossly
[6:06:50]
disproportionate to the actual
[6:06:50]
fence.
[6:06:53]
Again, this is a fee that's up
[6:06:54]
to $20,000 per day that a
[6:06:58]
violation exists.
[6:06:59]
And this would be I guess I
[6:06:59]
should say this is the judicial
[6:07:03]
civil penalty portion of this.
[6:07:04]
So a judge would have to factor
[6:07:08]
in what he or she would decide
[6:07:12]
would be judicially imposed.
[6:07:13]
Right.
[6:07:14]
I mean so it's not it's not a
[6:07:18]
guarantee $20,000 if we put a
[6:07:18]
ceiling on it.
[6:07:19]
Okay.
[6:07:23]
Fair enough Because again, we
[6:07:27]
have private right of action.
[6:07:28]
The city's policy generally has
[6:07:28]
a ban.
[6:07:29]
We're not looking for revenue.
[6:07:32]
We're looking for compliance by
[6:07:33]
private right of action
[6:07:37]
probably assume has no such
[6:07:37]
strings.
[6:07:38]
They don't have to say Did you
[6:07:41]
not know that there was a new
[6:07:42]
law that you have to comply
[6:07:43]
with that they can just drag
[6:07:46]
them into court, is that
[6:07:47]
correct?
[6:07:51]
Again, once the permit process
[6:07:51]
is up and running, yes, that
[6:07:52]
that is correct.
[6:07:56]
Okay.
[6:07:57]
And as I think others said,
[6:07:57]
communications are going to be
[6:07:58]
a big part of this to try to
[6:08:01]
spread the word that not only
[6:08:02]
is there a requirement but it
[6:08:02]
could be enforced immediately
[6:08:05]
unlike how the city typically
[6:08:09]
acts.
[6:08:10]
I think the one question that I
[6:08:14]
didn't hear from my colleagues
[6:08:15]
was we got a number of folks
[6:08:16]
who apparently operate under
[6:08:19]
the county cannabis equity
[6:08:24]
program.
[6:08:24]
I'm not familiar what are
[6:08:25]
the requirements that they had
[6:08:29]
to go through to qualify or get
[6:08:29]
a permit or whatever the county
[6:08:33]
does versus what this ordinance
[6:08:34]
will require?
[6:08:35]
Is there any differences or any
[6:08:38]
added obligations or
[6:08:39]
differences between
[6:08:43]
the county's permit and this
[6:08:43]
proposed permit The counties
[6:08:44]
permit?
[6:08:44]
From our conversations they
[6:08:48]
have four categories and
[6:08:48]
they're all land use based So
[6:08:49]
their delivery permit also
[6:08:53]
include is the facility itself
[6:08:54]
and they have a flat fee
[6:08:58]
assessed And I know we have
[6:08:59]
some county operators here they
[6:08:59]
can give the specifics on fees
[6:09:00]
but it's in the thousands of
[6:09:06]
dollars That's for the license
[6:09:06]
for the counties program.
[6:09:10]
An operator that's operating
[6:09:11]
social equity or not still has
[6:09:12]
to obtain their state license
[6:09:15]
both at the same time.
[6:09:15]
So they would have to obtain
[6:09:19]
their state license their
[6:09:20]
license to the county as a
[6:09:20]
separate licensing process
[6:09:23]
application fee And that's
[6:09:27]
the county what the city is
[6:09:28]
proposing in this ordinance is
[6:09:32]
the registration,
[6:09:32]
the commercial business
[6:09:33]
registration to do business and
[6:09:34]
conduct business in the city.
[6:09:37]
So it's not a land use permit
[6:09:37]
in that sense It's a business
[6:09:41]
registration that it's intended
[6:09:41]
to complement the existing
[6:09:46]
cannabis non cannabis business
[6:09:46]
tax certificate.
[6:09:47]
So if I understand correctly
[6:09:51]
the only new requirement for
[6:09:52]
anybody who has a permit or
[6:09:56]
license through the county is
[6:09:57]
to fill out an online form.
[6:09:57]
That's correct.
[6:10:01]
That's it.
[6:10:01]
So and the tax certificate and
[6:10:06]
then the permit fee which we
[6:10:09]
hope is $150 range.
[6:10:09]
>> Okay.
[6:10:14]
And I think that answers all
[6:10:15]
the questions.
[6:10:16]
So thank you very much for
[6:10:19]
answering the questions.
[6:10:20]
Thank you for working through
[6:10:20]
this.
[6:10:23]
I know some of the folks that
[6:10:24]
were in opposition to this are
[6:10:25]
not going to be satisfied with
[6:10:28]
the dialog here going forward
[6:10:34]
but I will be in support of
[6:10:35]
this.
[6:10:35]
So Councilmember Hemphill Thank
[6:10:36]
you, counselors.
[6:10:38]
I'll just be very brief.
[6:10:39]
MR. Carlin mentioned
[6:10:40]
constitutional protections that
[6:10:43]
clicked in my mind The Doctor
[6:10:43]
There would be a due process
[6:10:44]
problem for the city to create
[6:10:48]
a law but not create the permit
[6:10:49]
to enforce the law and then go
[6:10:52]
someone from a private reaction
[6:10:53]
go to a court to say this
[6:10:54]
person doesn't have the permit
[6:10:54]
that is required by law.
[6:10:58]
So I think it's a I think we
[6:10:58]
can say with a high degree of
[6:11:02]
certainty that no court would
[6:11:03]
allow a private private right
[6:11:06]
of action lawsuit if we haven't
[6:11:07]
taken the steps.
[6:11:07]
There's also equitable remedies
[6:11:11]
under the law to save.
[6:11:11]
How could I know I was
[6:11:12]
violating the law if I never
[6:11:13]
had the ability to follow
[6:11:16]
the law itself?
[6:11:16]
So I appreciate MR. Carlin
[6:11:17]
bringing up that phrase so it
[6:11:21]
would trigger that history
[6:11:21]
lesson.
[6:11:22]
Well, we all learned a little
[6:11:25]
bit about the Constitution.
[6:11:25]
Okay.
[6:11:26]
I think I've gotten all my
[6:11:30]
questions answered about again
[6:11:31]
thank you, Councilmember Campo,
[6:11:35]
for finally solving the missing
[6:11:36]
piece to regulate something
[6:11:36]
that we've talked about for a
[6:11:39]
very long time.
[6:11:40]
I look forward to Councilmember
[6:11:44]
Foster and his work at the city
[6:11:44]
level.
[6:11:45]
Thank you to staff for
[6:11:46]
navigating this and
[6:11:49]
the research that you did to
[6:11:50]
bring bring this forward.
[6:11:50]
So with that I don't see
[6:11:55]
anybody else on the lights.
[6:11:56]
We have a motion by
[6:11:56]
Councilmember Campo and
[6:11:57]
the second by council member
[6:12:00]
Von Wilbert that we can't
[6:12:00]
please call the roll.
[6:12:01]
I have set up the voting
[6:12:01]
system.
[6:12:11]
Please cast your vote.
[6:12:16]
The motion passes unanimously
[6:12:17]
with District two and district
[6:12:17]
date absent.
[6:12:21]
All right.
[6:12:21]
Thank you again.
[6:12:22]
Okay.
[6:12:23]
I need to do a little bit of a
[6:12:25]
time check.
[6:12:26]
This is the point in
[6:12:27]
the afternoon session where we
[6:12:30]
do not agenda public comment
[6:12:30]
Everybody willing to stick
[6:12:31]
around for both in-person and
[6:12:38]
remote because I hope we got
[6:12:39]
six So we're in good shape.
[6:12:40]
Thank you because I know I
[6:12:41]
don't want to roll over till
[6:12:43]
tomorrow.
[6:12:44]
It can be done so we will now
[6:12:47]
take up non agenda public
[6:12:48]
comment We'll take both
[6:12:49]
in-person and those
[6:12:49]
participating remotely.
[6:12:53]
Council members respect and
[6:12:54]
appreciate the public input and
[6:12:54]
are fully committed to
[6:12:57]
protecting every participant's
[6:12:58]
free speech rights at council
[6:12:59]
and committee meetings.
[6:12:59]
Deputy Clerk Please proceed
[6:13:03]
with public comment Pearl 2.7
[6:13:04]
Known Agenda Public comment is
[6:13:05]
an opportunity for members of
[6:13:08]
the public to comment on items
[6:13:09]
that are not on the agenda but
[6:13:09]
within the subject matter
[6:13:12]
jurisdiction of the City
[6:13:13]
Council.
[6:13:13]
Each speaker will have two
[6:13:14]
minutes.
[6:13:16]
Please note if there are eight
[6:13:17]
or more speakers on a single
[6:13:18]
topic the maximum time for
[6:13:20]
the topic will be 16 minutes.
[6:13:21]
If you are in chambers please
[6:13:22]
submit your speaker slip If you
[6:13:25]
are joining us virtually please
[6:13:26]
raise your hand to speak by
[6:13:27]
tapping the raise your hand
[6:13:30]
icon or if you are a call in
[6:13:31]
participant start nine We will
[6:13:33]
begin with in-person knowledge
[6:13:38]
and public comment.
[6:13:39]
Jacob Lewis Edwards I don't
[6:13:43]
think he's still here so I'll
[6:13:48]
go to the next person allegedly
[6:13:49]
Order Please come forward.
[6:14:02]
You have two minutes to speak.
[6:14:02]
Okay.
[6:14:06]
We we go.
[6:14:06]
Can you start my time over?
[6:14:07]
Thanks.
[6:14:07]
Yeah.
[6:14:10]
You guys are funny with this
[6:14:10]
drug stuff.
[6:14:11]
You're like we're going to
[6:14:12]
fight the war on drugs by
[6:14:15]
heavily regulating the drugs
[6:14:16]
make an extremely difficult for
[6:14:16]
all those people.
[6:14:20]
Who were you know wrongly
[6:14:21]
charged any who And it's funny
[6:14:24]
to be talking about drugs while
[6:14:25]
we have people who are
[6:14:26]
whistleblowing against
[6:14:29]
the government like some are
[6:14:30]
Stephan And the things that are
[6:14:34]
going on in the jails at Las
[6:14:35]
Colinas and their brutal
[6:14:40]
assault from that Andrea Ebbing
[6:14:40]
with Anthony Warner totally
[6:14:41]
slammed her face into
[6:14:45]
the ground and he's playing
[6:14:45]
the victim.
[6:14:48]
He's like six, six three and
[6:14:49]
260 pounds said she was really
[6:14:53]
posturing any who So they have
[6:14:53]
done a competency evaluation
[6:14:57]
because you know in order to
[6:14:58]
silence somebody you got to
[6:14:59]
really question their
[6:15:03]
competency.
[6:15:04]
So then as long as you ask them
[6:15:04]
some political questions and
[6:15:08]
the person doing the evaluation
[6:15:08]
things that you're I don't know
[6:15:09]
maybe a conspiracy theorist
[6:15:12]
then they'll say that your
[6:15:12]
incompetent So how cool is
[6:15:13]
that?
[6:15:16]
I mean she's got felony charges
[6:15:17]
from you know, supposedly
[6:15:18]
barring Anthony Warner who you
[6:15:22]
know, can still shoot his
[6:15:22]
firearm but has to take time
[6:15:23]
off of work because his hand is
[6:15:27]
so injured.
[6:15:28]
But it's just interesting to
[6:15:28]
see the lengths that people
[6:15:32]
will go to silence people.
[6:15:33]
So I mean imagine she might go
[6:15:36]
into a mental hospital for like
[6:15:36]
two years.
[6:15:36]
Who knows?
[6:15:37]
And then eventually, you know,
[6:15:40]
if somebody deems her competent
[6:15:41]
she might be able to face these
[6:15:41]
charges.
[6:15:41]
Right.
[6:15:45]
And right now she's in on two
[6:15:46]
misdemeanors.
[6:15:46]
She's out on a felony.
[6:15:50]
You know, she had her brain
[6:15:50]
aneurysm.
[6:15:51]
No worries there.
[6:15:51]
She might need some more
[6:15:52]
surgery while she's in there.
[6:15:55]
She already had to go to
[6:15:56]
the hospital because they can't
[6:15:56]
take care of her.
[6:16:00]
>> But good job isn't that cool
[6:16:00]
when you're exposing stuff and
[6:16:01]
they say you're incompetent
[6:16:05]
should be really exciting.
[6:16:05]
>> The job.
[6:16:06]
Thank you.
[6:16:10]
Blair Beekman followed by Bob
[6:16:11]
Kozinski, Anthony Ralphs, Lori
[6:16:14]
Saldana, Marco Espinosa and
[6:16:25]
Terry Best High by Beekman
[6:16:25]
Thanks.
[6:16:26]
A report back on Andrea's which
[6:16:29]
is that where she's at?
[6:16:29]
I think she's passing her
[6:16:34]
competency test so Oh I'm not
[6:16:34]
hearing the story right If
[6:16:35]
she's going down again she was
[6:16:38]
up before and now it's down and
[6:16:39]
it's just amazing she has to go
[6:16:40]
through all of this.
[6:16:43]
I mean I really hope that can
[6:16:43]
be a real effort to be working
[6:16:48]
on this issue And overall
[6:16:48]
issues of how our police work,
[6:16:49]
how our immune systems are
[6:16:52]
working.
[6:16:53]
Good luck in those efforts.
[6:17:00]
I wanted to ask also how
[6:17:01]
the just I made a point You
[6:17:02]
know, I was I was late to learn
[6:17:05]
that the new Good Day Centers
[6:17:06]
is probably going to be closing
[6:17:10]
in six months time And I think
[6:17:10]
we have to make a concerted
[6:17:11]
effort to talk about our
[6:17:15]
homeless issues more in
[6:17:16]
the coming year, how we do that
[6:17:19]
and a more sensitivity in that
[6:17:20]
department.
[6:17:21]
And so I was really hurt in
[6:17:24]
the presentation being
[6:17:24]
dismissed today.
[6:17:25]
I think we have to make that
[6:17:29]
extra effort at this time and I
[6:17:30]
hope we can.
[6:17:30]
So good luck how we can.
[6:17:34]
I also wanted to offer at this
[6:17:38]
time I'm giving my tech academy
[6:17:39]
a bit of a break tonight and
[6:17:43]
just consider you know
[6:17:44]
the ideas I brought up before
[6:17:44]
about budget issues that we can
[6:17:48]
still work on budget issues at
[6:17:52]
this time And the idea of as a
[6:17:53]
very small cut in pay to our
[6:17:57]
city government staff if that's
[6:17:58]
3000 people at least if they
[6:18:03]
take a cut of say $600 a year
[6:18:04]
that's 50 bucks a month.
[6:18:08]
I think that's over almost $2
[6:18:08]
million in savings that can go
[6:18:12]
to the budget and that's not
[6:18:13]
including our city council And
[6:18:17]
Mayor, what they can take on
[6:18:18]
that's a lot of money and I
[6:18:19]
hope we want to consider such
[6:18:22]
things.
[6:18:23]
>> Good luck You can Thank you.
[6:18:23]
Thank you.
[6:18:29]
Bob Kozinski So video okay.
[6:18:48]
Okay Bob because there's a week
[6:18:49]
ago today I was hang gliding at
[6:18:50]
Dockweiler State Beach in Los
[6:18:53]
Angeles under the Dockweiler
[6:18:53]
waiver that has been in place
[6:18:54]
since 2017 the public has been
[6:18:55]
able to hang glider at
[6:18:58]
Dockweiler Beach for nearly ten
[6:18:59]
years under that waiver a
[6:18:59]
decade ago.
[6:19:03]
However, hang gliding at
[6:19:04]
Dockweiler was not allowed by
[6:19:04]
the county of Los Angeles
[6:19:08]
without use of a membership.
[6:19:08]
Fortunately that all changed
[6:19:09]
due to a sequence of events
[6:19:13]
that started right here in San
[6:19:13]
Diego On JULY 24th, 2011.
[6:19:16]
A female student named Shannon
[6:19:17]
Hamby was taking lessons at
[6:19:22]
Tori through the city where she
[6:19:23]
was under radio supervision
[6:19:27]
when she was flown directly
[6:19:28]
into the path of another
[6:19:28]
student.
[6:19:29]
She crashed and was badly
[6:19:29]
injured.
[6:19:32]
I was contacted by Shannon's
[6:19:33]
lawyer and asked to testify as
[6:19:36]
an expert witness and I did.
[6:19:37]
My testimony in SEPTEMBER of
[6:19:38]
2014 was solid and the case was
[6:19:42]
quickly settled in Shannon's
[6:19:42]
favor for an undisclosed
[6:19:43]
amount.
[6:19:46]
Yeshivah ended up losing their
[6:19:47]
insurance coverage by NOVEMBER
[6:19:47]
of 2014.
[6:19:50]
I was retaliated against by
[6:19:51]
your concessionaire who
[6:19:52]
conspired with you spend
[6:19:55]
the spring of 2015 to have me
[6:19:55]
expelled for my testimony which
[6:20:00]
ended my ability to fly at all
[6:20:00]
use for sites including Torrey
[6:20:04]
Pines and Dockweiler In early
[6:20:04]
2017 we met with newly elected
[6:20:08]
Barbara Bree for help.
[6:20:09]
Barbara Bree suggested a flight
[6:20:10]
waiver to solve the problem but
[6:20:13]
she never followed through.
[6:20:14]
Joe Foust and I also spoke to
[6:20:15]
the Los Angeles County Board of
[6:20:18]
Supervisors while Barbara Bree
[6:20:19]
did nothing here in San Diego,
[6:20:23]
Los Angeles Supervisor Janice
[6:20:23]
Hahn stepped up and actually
[6:20:27]
instituted a waiver.
[6:20:28]
The first DR. Weiler waivers
[6:20:28]
were issued to Joe Foust, Frank
[6:20:32]
Culver and myself on JULY 26th,
[6:20:32]
2017 and we have flown under
[6:20:36]
those waivers without incident
[6:20:37]
ever since Barbara Bree dodged
[6:20:38]
the issue for the rest of her
[6:20:41]
term until her failed mayoral
[6:20:42]
bid in 2020.
[6:20:43]
Joe LaCava has followed her
[6:20:47]
lead throughout his entire term
[6:20:47]
reactivate the Torrey Pines
[6:20:48]
City Park Advisory Board and
[6:20:51]
Institute a Torrey Pines flight
[6:20:54]
waiver now Thank you.
[6:20:59]
>> Thank you.
[6:21:01]
>> Our next speaker is Anthony
[6:21:06]
Ralphs.
[6:21:11]
Good afternoon City Council.
[6:21:12]
I just wanted to speak about
[6:21:13]
the concern that I have and
[6:21:17]
hearing the expressed financial
[6:21:17]
concerns earlier today.
[6:21:18]
Miss Campbell who is no longer
[6:21:22]
here expressed the $3 million
[6:21:22]
concern that she had with
[6:21:27]
the study that was done for
[6:21:28]
the Phase two project for sdi
[6:21:30]
And she thought that the $3
[6:21:31]
million was too much, that
[6:21:32]
these studies are costing
[6:21:34]
the city too much.
[6:21:35]
I have a real difficulty in
[6:21:39]
understanding how she can on
[6:21:40]
one hand have fine problems
[6:21:44]
with the costs of the studies
[6:21:45]
that cost $3 million to help us
[6:21:45]
potentially get off of a
[6:21:49]
monopoly that's making $1
[6:21:50]
billion of profit every year.
[6:21:54]
But she doesn't raise a single
[6:21:54]
point with the fact that
[6:21:59]
the police budget the public
[6:22:02]
liability fund has exceeded
[6:22:03]
over $116 million in the last
[6:22:04]
ten years or that this year
[6:22:08]
alone it's already exceeded $42
[6:22:08]
million and we're not even
[6:22:12]
finished with all
[6:22:12]
the settlements.
[6:22:13]
I have not heard the side of
[6:22:17]
the city that does not address
[6:22:17]
these issues as as Henry Foster
[6:22:21]
has expressed before and
[6:22:22]
multiple times in this chambers
[6:22:23]
he said this is the tale of two
[6:22:23]
cities And he's right.
[6:22:27]
We do have one half of this
[6:22:27]
city council that understands
[6:22:28]
and respects our privacy
[6:22:31]
concerns, that understands and
[6:22:32]
respects that we are not
[6:22:37]
property of the state to be
[6:22:37]
tracked in our whereabouts of
[6:22:41]
where we go that understands in
[6:22:42]
the Supreme Court's recent
[6:22:46]
ruling that we have freedom in
[6:22:47]
the whole totality of our
[6:22:51]
movement Although the roads are
[6:22:52]
owned yes by the city and
[6:22:53]
therefore yes y'all do have
[6:22:57]
jurisdiction over the city's
[6:22:57]
roads.
[6:22:58]
We own our own personal
[6:23:02]
sovereignty over our own bodies
[6:23:03]
And there are cities that are
[6:23:08]
being sued including I believe
[6:23:08]
it is Santa Monica No Santa
[6:23:13]
Clara.
[6:23:14]
>> Thank you for your time.
[6:23:14]
Thank you.
[6:23:15]
We're next.
[6:23:22]
Lori Saldana.
[6:23:23]
>> Good evening and thank you
[6:23:27]
to those of you who are
[6:23:28]
actually still here and some of
[6:23:29]
you are maybe even paying
[6:23:29]
attention.
[6:23:33]
I just got off of a Zoom
[6:23:33]
meeting with the Democratic
[6:23:36]
Club and one of the council
[6:23:37]
members who's not here tonight
[6:23:38]
was in that meeting.
[6:23:41]
So I'm not sure where
[6:23:41]
the priorities are but it's a
[6:23:42]
little concerning to me when
[6:23:43]
you have discussions on issues
[6:23:47]
that are important to this body
[6:23:47]
and people leave early and then
[6:23:51]
end up at another engagement
[6:23:51]
elsewhere.
[6:23:52]
You're you're concerned about
[6:23:53]
the impacts on public health
[6:23:57]
and safety and giving
[6:23:57]
the private right of action to
[6:23:58]
others in certain industry.
[6:24:01]
And I just want to suggest that
[6:24:02]
there's another industry in
[6:24:03]
town that has serious impacts
[6:24:07]
on public health and safety.
[6:24:08]
Is it just me or is there
[6:24:09]
feedback on this tonight?
[6:24:12]
There's feedback.
[6:24:13]
>> And if you were to give a
[6:24:14]
private right of action to
[6:24:17]
people I think you would go a
[6:24:18]
long way to closing of several
[6:24:18]
problems in our city budget and
[6:24:22]
also our housing.
[6:24:23]
And of course I'm talking about
[6:24:24]
short term vacation rentals.
[6:24:27]
They also lack enforcement.
[6:24:28]
They also have people operating
[6:24:29]
without permits.
[6:24:29]
They also have people putting
[6:24:34]
lives and safety at risk.
[6:24:34]
Around the corner from my
[6:24:35]
house.
[6:24:35]
There's a short term rental
[6:24:39]
that has caught on fire that
[6:24:39]
has flooded raw sewage into
[6:24:40]
the streets.
[6:24:41]
And it took me over a year to
[6:24:44]
get someone to respond.
[6:24:45]
If I had a private right of
[6:24:46]
action I could have gone at
[6:24:50]
them as a property owner
[6:24:51]
nearby.
[6:24:51]
Also they don't pay commercial
[6:24:52]
trash hauling fees.
[6:24:56]
They pay residential fees and
[6:24:56]
they're businesses operating in
[6:24:57]
our neighborhoods.
[6:24:58]
If you are serious about
[6:25:01]
private right of action, give
[6:25:02]
residents who are next door to
[6:25:02]
short term rentals that are
[6:25:07]
violating the permitting,
[6:25:07]
violating health and safety.
[6:25:08]
And let us go after them
[6:25:13]
because I promise you they are
[6:25:13]
not disadvantaged.
[6:25:14]
They have people that owned
[6:25:14]
multiple properties that form
[6:25:18]
consortiums that buy our
[6:25:19]
properties in Ocean Beach and
[6:25:19]
elsewhere and push out full
[6:25:24]
time residential rent renters
[6:25:25]
and homeowners.
[6:25:26]
If you want a right of action
[6:25:26]
apply it to short term rent.
[6:25:27]
Thank you.
[6:25:28]
That does conclude your time.
[6:25:34]
>> Marco Espinosa.
[6:25:35]
>> Good evening.
[6:25:40]
My question goes a Boston
[6:25:41]
Avenue park ideas.
[6:25:46]
Um the it's not helpful if I
[6:25:47]
don't have a map for you.
[6:25:52]
Sorry.
[6:25:53]
Um, I know we already iterated
[6:25:58]
the coming onto the freeway
[6:25:58]
The bollards that first section
[6:25:59]
of park between the freeway
[6:26:04]
onramp and the bridge that goes
[6:26:04]
over the freeway.
[6:26:05]
I think that could be
[6:26:09]
the section in the diagram
[6:26:09]
shows how it's owned.
[6:26:10]
It doesn't include actually
[6:26:10]
the walkway.
[6:26:15]
Um, and the bridge.
[6:26:16]
Um, so when I got to the park I
[6:26:17]
was like oh that's something to
[6:26:21]
consider on Google Maps.
[6:26:22]
The park actually looks really
[6:26:22]
small.
[6:26:23]
Doesn't seem like there's a lot
[6:26:27]
space but once you get there
[6:26:28]
quite a lot of space for a park
[6:26:29]
If it does end up being the um
[6:26:32]
tennis courts or soccer fields
[6:26:39]
um in the portion that's like a
[6:26:39]
longer portion Nothing could
[6:26:40]
fit there.
[6:26:40]
That doesn't need to be like a
[6:26:41]
net or something that goes
[6:26:45]
along that nice new barrier
[6:26:45]
wall for the freeway so
[6:26:46]
eyeballs don't go into
[6:26:50]
the freeway as cars are going.
[6:26:55]
And then the second portion of
[6:26:56]
land use available for park
[6:26:57]
Right now it's a cycle center.
[6:27:03]
I remember I heard that
[6:27:04]
possibly So we chose one second
[6:27:04]
over which then we left like a
[6:27:08]
little strip on the side along
[6:27:08]
Charles Creek and at the creek
[6:27:09]
was a lot cleaner, a lot nicer.
[6:27:13]
I mean you can make that into
[6:27:14]
some kind of little beach kind
[6:27:14]
of thing but it's a really
[6:27:15]
dirty water so.
[6:27:20]
And if the recycle center does
[6:27:20]
move out and the so be chosen
[6:27:27]
to move in, that's a huge whole
[6:27:27]
plot of land for a park that
[6:27:28]
had a nice and everything.
[6:27:29]
That would be a lot of fun.
[6:27:33]
And couple of more that you
[6:27:37]
measured did not pass but I saw
[6:27:38]
advertised as 5000 to 5000 but
[6:27:38]
on the values 8000.
[6:27:39]
Thank you.
[6:27:40]
That does conclude your time.
[6:27:47]
Terry Best Terry Best District
[6:27:47]
three.
[6:27:52]
Please stop allowing special
[6:27:53]
interest to write laws that
[6:27:53]
create and strengthen
[6:27:54]
monopolies.
[6:27:59]
Stop doing the bidding of rich
[6:27:59]
white men to fund your future
[6:28:00]
political endeavors.
[6:28:05]
Stop allowing special interests
[6:28:05]
using labor to attack those
[6:28:11]
less fortunate.
[6:28:12]
This nonsense theme here is
[6:28:16]
precursory support for your
[6:28:16]
2028 mayor campaign and it
[6:28:17]
looks ugly.
[6:28:17]
Is that the look you want
[6:28:23]
further marginalize vulnerable
[6:28:23]
people?
[6:28:24]
Again, shame on you MR. Trump.
[6:28:28]
You.
[6:28:29]
>> Thank you.
[6:28:29]
That does conclude in-person
[6:28:35]
public comment.
[6:28:36]
I have started the five minute
[6:28:36]
timer in council chambers.
[6:28:37]
We will now turn to the virtual
[6:28:41]
queue in which there are seven
[6:28:41]
participants requesting to
[6:28:42]
speak.
[6:28:42]
We'll begin with Tyrion Skelly.
[6:28:50]
Please begin.
[6:28:51]
Good evening San Diego City
[6:28:51]
Council Chair.
[6:28:55]
My name is Scully and I work
[6:28:56]
with my planning group on good
[6:28:56]
public health and safety
[6:28:57]
policies and land use
[6:28:57]
decisions.
[6:29:02]
Where I live has windy
[6:29:02]
sometimes rocky roads,
[6:29:03]
overgrown foliage and some
[6:29:07]
roads reported that at times
[6:29:08]
and dangerous when it rains or
[6:29:08]
is windy as it's been in
[6:29:12]
the last couple of days.
[6:29:13]
JUNE is Brain Awareness Month
[6:29:14]
and I'd like to talk about
[6:29:19]
the dangers of marijuana and
[6:29:19]
alcohol impaired drivers.
[6:29:20]
This is a situation we know
[6:29:21]
well in our family oriented
[6:29:25]
neighborhoods with our perilous
[6:29:25]
roadways.
[6:29:26]
Recently the Journal of
[6:29:27]
Adolescent Health article wrote
[6:29:30]
that marijuana policies
[6:29:31]
decisions must acknowledge that
[6:29:36]
access access to an
[6:29:36]
intoxicating substance that
[6:29:37]
appeals to young people will
[6:29:42]
end up causing harm No more.
[6:29:43]
So then when we drive
[6:29:43]
the tribute again describe
[6:29:44]
the conditions of our roadways
[6:29:49]
and the delays to fix them.
[6:29:49]
I would like to respectfully
[6:29:50]
suggest that damaged roadways
[6:29:54]
combined with drug impaired
[6:29:55]
driving is one more lawsuit
[6:29:55]
about to happen?
[6:30:01]
At least there is one thing you
[6:30:02]
could do to mitigate that has
[6:30:02]
been contributing to
[6:30:03]
the dangerous the dangerous use
[6:30:06]
of can and cannabis removing
[6:30:07]
enticing and distracting
[6:30:12]
marijuana billboards from our
[6:30:13]
roadways.
[6:30:13]
Summer 26 would be the perfect
[6:30:14]
time for policies to happen
[6:30:19]
that would ban marijuana from
[6:30:19]
our neighborhood roadways.
[6:30:20]
Thank you for hearing my
[6:30:24]
concerns this evening.
[6:30:24]
Thank you.
[6:30:25]
Next up Peggy Walker.
[6:30:30]
Please begin.
[6:30:30]
Thank you.
[6:30:31]
Council members Food and gas
[6:30:36]
prices MAY be high today but
[6:30:37]
drugs like high potency
[6:30:38]
marijuana have never been more
[6:30:42]
affordable or available And
[6:30:43]
that's reflected in today's
[6:30:43]
marijuana delivery item
[6:30:49]
addressed earlier.
[6:30:49]
In a society seeking
[6:30:50]
the convenience of home
[6:30:50]
delivery for just about
[6:30:55]
everything that item shows
[6:30:56]
psychotropic drug consumers are
[6:30:56]
no exception.
[6:31:01]
And the upshot of that is that
[6:31:02]
a society where people can get
[6:31:03]
high so easily it's also less
[6:31:07]
healthy and that's reasonable.
[6:31:08]
That truth was put forth in a
[6:31:12]
recent New York Times article
[6:31:13]
headlined It Shouldn't Be This
[6:31:14]
Easy to Get High And so many of
[6:31:19]
us parents agree.
[6:31:20]
Citing the fact that 48 million
[6:31:20]
Americans are addicted to an
[6:31:25]
intoxicant like marijuana,
[6:31:25]
the Times suggests we should be
[6:31:26]
making it easier for people to
[6:31:31]
get help rather than get high.
[6:31:32]
A straightforward way to curb a
[6:31:37]
particularly uptick in use and
[6:31:38]
its outcomes of poor physical
[6:31:39]
and mental health and
[6:31:39]
addiction.
[6:31:43]
The proposals it's higher
[6:31:44]
taxation on marijuana reasoning
[6:31:45]
that people sicker less when
[6:31:48]
something's more costly.
[6:31:49]
With that in mind I ask your
[6:31:50]
consideration of increased
[6:31:56]
taxes for all marijuana
[6:31:56]
products.
[6:31:57]
However results are delivered
[6:32:01]
and more transparent reporting
[6:32:02]
of how much in taxes for
[6:32:03]
marijuana is being collected
[6:32:08]
and transfer nc and how they're
[6:32:09]
being used by the city.
[6:32:09]
Thank you for that
[6:32:14]
consideration.
[6:32:14]
Thank you.
[6:32:15]
Next up is Judith Strain.
[6:32:19]
Please begin.
[6:32:20]
>> Good evening San Diego City
[6:32:20]
Council.
[6:32:21]
I appreciate that you've stated
[6:32:25]
that doesn't go unnoticed by
[6:32:26]
the public when you make those
[6:32:26]
sorts of sacrifices.
[6:32:27]
I want to speak to a
[6:32:31]
terminology that we're seeing
[6:32:32]
in public health more and more
[6:32:33]
and that is called gas station
[6:32:33]
heroin.
[6:32:38]
It's kind of used as a catchall
[6:32:38]
terminology for gas station
[6:32:44]
intoxicants but we now see
[6:32:44]
those products still available
[6:32:45]
to our young people.
[6:32:46]
They include in their often
[6:32:50]
sort of spotlight kratom.
[6:32:50]
They're also including what's
[6:32:56]
called magic mushrooms not I'm
[6:32:56]
sorry nitrous oxide and other
[6:33:01]
products that contain high thc
[6:33:02]
in hiding under cbd products.
[6:33:03]
I just mention it because
[6:33:08]
the terminology is getting used
[6:33:09]
more and more about where our
[6:33:14]
children buy these items at gas
[6:33:15]
stations which right at the top
[6:33:15]
of the list and the number of
[6:33:16]
gas stations in the city of San
[6:33:16]
Diego.
[6:33:20]
One can only guess And if we
[6:33:21]
were to enforce the laws
[6:33:21]
against these products here in
[6:33:25]
our city, just think of
[6:33:26]
the amount of money that we
[6:33:26]
could bring in.
[6:33:27]
So as you hear the terminology
[6:33:31]
gas station heroin and realize
[6:33:31]
that they're talking about all
[6:33:32]
the intoxicants that are now
[6:33:37]
portable at gas stations, I
[6:33:38]
think what we could do to at
[6:33:38]
least stop it by enforcement
[6:33:43]
and gather up from them they
[6:33:44]
find that come with it.
[6:33:45]
Boy, it could be a double win
[6:33:46]
for everybody.
[6:33:53]
>> Thank you.
[6:33:54]
>> Please note that the five
[6:33:54]
minute timer has concluded with
[6:33:55]
four speakers left in
[6:33:55]
the queue.
[6:33:59]
No other speakers will be taken
[6:33:59]
at this time.
[6:34:00]
Next up Phyllis.
[6:34:10]
Please begin.
[6:34:18]
Phyllis, please On the air.
[6:34:30]
I can assure you Phyllis I can
[6:34:30]
on mute for you.
[6:34:33]
We're going to move on.
[6:34:38]
Okay.
[6:34:39]
Next up, Becky Wrap.
[6:34:51]
Please begin.
[6:34:52]
Good evening.
[6:34:53]
I need a second rapid increase
[6:34:56]
in my concerns about
[6:34:57]
transparency and
[6:34:57]
accountability.
[6:34:58]
In San Diego, the marijuana
[6:35:03]
marijuana permitting program
[6:35:03]
almost seven years ago,
[6:35:04]
the rich Bernardo community
[6:35:08]
engaged extensively in
[6:35:08]
the public process for
[6:35:09]
the original marijuana
[6:35:09]
application.
[6:35:14]
Residents attended hearings,
[6:35:15]
submitted written comments and
[6:35:16]
with strong concern about this
[6:35:17]
being a pot shop in their
[6:35:20]
neighborhood.
[6:35:21]
But what has happened since
[6:35:21]
that approval is basically
[6:35:22]
invisible to the public.
[6:35:27]
That original permit has now
[6:35:28]
changed hands multiple times.
[6:35:29]
The operator that the community
[6:35:29]
initially evaluated is no
[6:35:33]
longer the operator today.
[6:35:34]
Ownership has shifted through
[6:35:35]
acquisitions and corporate
[6:35:35]
transactions and now
[6:35:39]
the business is associated with
[6:35:40]
a brand called Lake House.
[6:35:41]
Residents were never notified
[6:35:45]
of these changes.
[6:35:46]
There were no public hearings,
[6:35:46]
no neighborhood notices and no
[6:35:47]
requirement for the city to
[6:35:48]
explain who ultimately controls
[6:35:50]
these permits.
[6:35:51]
The community was fully engaged
[6:35:52]
in the original decision but it
[6:35:57]
has been in the dark for years
[6:35:57]
since.
[6:35:58]
That raises a transparency
[6:35:58]
question.
[6:36:02]
If public input is required to
[6:36:03]
approve a pot shop, why is
[6:36:03]
there no transparency when that
[6:36:08]
same permit is sold or
[6:36:09]
transferred to an entirely
[6:36:09]
different company multiple
[6:36:10]
times?
[6:36:14]
The operator behind the permit
[6:36:15]
is not a minor detail.
[6:36:15]
It speaks to accountability,
[6:36:20]
business practices and
[6:36:20]
the enforcement history.
[6:36:21]
It also raises concerns about
[6:36:22]
branding and public perception
[6:36:25]
and the like.
[6:36:26]
The House does not communicate
[6:36:27]
to the public that this
[6:36:31]
business will be selling highly
[6:36:32]
intoxicating products.
[6:36:32]
Rather the message it sends is
[6:36:37]
that our being now has a new
[6:36:37]
bakery in town.
[6:36:38]
This is unacceptable and
[6:36:39]
communities deserve to know who
[6:36:43]
is operating in their
[6:36:44]
neighborhoods not just at
[6:36:44]
the moment of approval but
[6:36:45]
throughout the entire life of a
[6:36:45]
permit.
[6:36:49]
Thank you.
[6:36:49]
Thank you.
[6:36:51]
Next, John Elway.
[6:36:57]
Please begin.
[6:36:58]
Hi John.
[6:36:58]
You have lived experience
[6:37:04]
advisors so my team and I went
[6:37:04]
through all the press articles
[6:37:05]
and were in attendance or
[6:37:10]
listening to the majority of
[6:37:11]
the budget meetings and we
[6:37:16]
started to find out that
[6:37:16]
the city is not only funding
[6:37:22]
the partial operation over at
[6:37:23]
the new Good data center but
[6:37:24]
that you are licensing it
[6:37:28]
meaning that nobody could go
[6:37:29]
ahead and or and fill in
[6:37:34]
the money or or move in and
[6:37:34]
operate that separately from
[6:37:35]
the existing provider.
[6:37:39]
I can't believe after all
[6:37:40]
the work we've done building
[6:37:41]
relationships that nobody had
[6:37:45]
the courtesy to say that Well
[6:37:46]
actually I probably should
[6:37:47]
believe it because obviously it
[6:37:51]
was hidden from the public.
[6:37:52]
The fact that you were taking
[6:37:52]
away the only place that
[6:37:57]
homeless people could go in
[6:37:58]
the entire city and not be
[6:37:59]
addressed at least from 9 to 5
[6:38:03]
for a few days a week.
[6:38:03]
I'd like to understand how this
[6:38:04]
decision occurred and was that
[6:38:09]
included in the budget
[6:38:09]
resolution?
[6:38:10]
>> Thank you.
[6:38:15]
Thank you.
[6:38:16]
Next our last caller is caller
[6:38:18]
with the last four digits 8700
[6:38:25]
please begin.
[6:38:26]
Thank you.
[6:38:31]
First of all, Joy Senator a
[6:38:32]
first of all, a big thank you
[6:38:32]
and five stars for
[6:38:36]
the performance by our deputy
[6:38:37]
city clerk.
[6:38:43]
Thank you so much And the next
[6:38:44]
PRESIDENT For your humor was
[6:38:45]
present today.
[6:38:49]
Thank you.
[6:38:50]
Thank you.
[6:38:50]
I really enjoyed that.
[6:38:51]
And then a request from MR.
[6:38:56]
Stump.
[6:38:56]
I'm wondering if you could
[6:38:57]
during the public comment give
[6:39:03]
the public his nine step plan
[6:39:03]
for fda and that sounds
[6:39:07]
interesting.
[6:39:08]
Next I want to speak to
[6:39:13]
the gentleman who used the word
[6:39:14]
union bust and I felt his anger
[6:39:19]
in those words.
[6:39:20]
I respect that anger.
[6:39:25]
Next, I love the boldness and
[6:39:26]
the fight that was present in
[6:39:31]
the chamber today.
[6:39:32]
Did you feel the beautiful
[6:39:32]
tapestry of all the people to
[6:39:39]
be There was a little bit like
[6:39:44]
what we feel when we say one
[6:39:44]
people, one family, one San
[6:39:48]
Diego I'm going to get to this
[6:39:49]
tomorrow.
[6:39:49]
Look forward to that.
[6:39:55]
But to all.
[6:39:56]
Thank you.
[6:39:56]
This concludes lunch and
[6:39:57]
the public comment.
[6:39:57]
All right.
[6:39:58]
You can catch me at The Late
[6:40:00]
Show at the Comedy Club later
[6:40:00]
tonight.
[6:40:01]
With that, does the city
[6:40:02]
attorney have anything to
[6:40:02]
report out in closed session?
[6:40:07]
There is nothing to report.
[6:40:07]
All right.
[6:40:08]
Thank you.
[6:40:09]
With that we will now turn
[6:40:09]
counsel to the regularly
[6:40:11]
scheduled council meeting
[6:40:12]
tomorrow, Tuesday, JUNE 23rd,
[6:40:13]
2026 at 10 A.M. Or shortly
[6:40:13]
thereafter.