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2 00:15:23,397 --> 00:15:25,397 and 3 00:16:32,166 --> 00:16:32,567 and and I will answer. 4 00:16:32,567 --> 00:16:33,000 All right. 5 00:16:33,000 --> 00:16:33,601 Good morning. 6 00:16:33,601 --> 00:16:37,201 I will now call the City 7 00:16:37,472 --> 00:16:38,720 council meeting of Monday, JUNE 8 00:16:38,720 --> 00:16:38,772 22nd 2026 to order that 9 00:16:38,772 --> 00:16:41,109 the clerk please call the Roll 10 00:16:41,109 --> 00:16:43,509 Council member Campbell your 11 00:16:48,549 --> 00:16:49,217 government Council member 12 00:16:49,217 --> 00:16:51,617 Whitburn here Council Member 13 00:16:53,588 --> 00:16:54,288 Foster Council Member Von 14 00:16:54,288 --> 00:16:54,956 Wilpert Council Member Council 15 00:16:54,956 --> 00:16:57,956 PRESIDENT Pro Tem Lee here 16 00:17:00,261 --> 00:17:00,895 Council Member Can't be out 17 00:17:00,895 --> 00:17:03,295 here Council Member Moreno 18 00:17:06,330 --> 00:17:06,634 Council Member Julio Rivera and 19 00:17:06,634 --> 00:17:06,968 Council PRESIDENT LaCava 20 00:17:06,968 --> 00:17:07,669 present. 21 00:17:07,669 --> 00:17:10,669 Also attending the meeting are 22 00:17:12,707 --> 00:17:13,340 City Attorney Heather Ferber, 23 00:17:13,340 --> 00:17:15,340 independent budget analyst 24 00:17:18,112 --> 00:17:18,846 Jillian and Elina of Council 25 00:17:18,846 --> 00:17:19,180 Affairs advisor in the mayor's 26 00:17:19,180 --> 00:17:19,848 office. 27 00:17:19,848 --> 00:17:23,448 But as I learned myself here 28 00:17:23,484 --> 00:17:24,152 Deputy City Clerk Kevin Smith 29 00:17:24,152 --> 00:17:24,853 All right, thank you Deputy 30 00:17:24,853 --> 00:17:25,687 Clerk a quorum is now present. 31 00:17:25,687 --> 00:17:29,287 We will begin this morning with 32 00:17:30,158 --> 00:17:30,725 the invocation by Deputy Clerk 33 00:17:30,725 --> 00:17:31,426 Smith followed with an 34 00:17:31,426 --> 00:17:32,930 acknowledgment and the Pledge 35 00:17:32,930 --> 00:17:35,930 of Allegiance let by council 36 00:17:35,832 --> 00:17:37,832 member Campbell Brandt. 37 00:17:42,203 --> 00:17:42,871 Those who hold office in 38 00:17:42,871 --> 00:17:43,571 the city a spirit of wisdom, 39 00:17:43,571 --> 00:17:46,571 charity and justice that were 40 00:17:47,742 --> 00:17:48,376 steadfast purpose They MAY 41 00:17:48,376 --> 00:17:48,876 faithfully serve in their 42 00:17:48,876 --> 00:17:50,876 offices to promote 43 00:17:53,810 --> 00:17:53,848 the well-being of all people. 44 00:17:53,848 --> 00:17:55,848 We respectfully acknowledge 45 00:17:59,721 --> 00:18:00,388 that the communication or 46 00:18:00,388 --> 00:18:01,890 the original inhabitants of 47 00:18:01,890 --> 00:18:04,689 the Unceded land now known as 48 00:18:06,940 --> 00:18:06,761 San Diego Despite enduring 49 00:18:06,761 --> 00:18:07,429 the horrors of genocide and 50 00:18:07,429 --> 00:18:09,429 colonization, the community 51 00:18:11,966 --> 00:18:12,734 spirit remains unbroken. 52 00:18:12,734 --> 00:18:13,434 We honor the resilience of 53 00:18:13,434 --> 00:18:16,434 their ancestors who fought to 54 00:18:17,572 --> 00:18:18,240 protect their culture and land 55 00:18:18,240 --> 00:18:18,907 and today they carry their 56 00:18:18,907 --> 00:18:21,307 legacy forward ensuring that 57 00:18:23,845 --> 00:18:24,446 their traditions continue to 58 00:18:24,446 --> 00:18:25,146 thrive and gratitude and 59 00:18:25,146 --> 00:18:28,146 strength We stand with Cooma, 60 00:18:29,851 --> 00:18:30,452 our nation connected to our 61 00:18:30,452 --> 00:18:30,919 past and committed to a 62 00:18:30,919 --> 00:18:32,919 thriving future. 63 00:18:36,391 --> 00:18:37,920 We place the flag, place your 64 00:18:37,920 --> 00:18:40,692 hand over your heart and let's 65 00:18:41,529 --> 00:18:42,297 begin by going to the flag 66 00:18:42,297 --> 00:18:42,998 United States of America and to 67 00:18:42,998 --> 00:18:45,998 the Republic for which it 68 00:18:46,668 --> 00:18:47,335 stands one nation under GOD, 69 00:18:47,335 --> 00:18:49,735 indivisible with liberty and 70 00:18:52,741 --> 00:18:53,508 justice for all. 71 00:18:53,508 --> 00:18:54,275 >> All right With that Deputy 72 00:18:54,275 --> 00:18:57,275 clerk, please go over how 73 00:18:58,713 --> 00:18:59,810 the public can offer their 74 00:18:59,810 --> 00:18:59,648 testimony. 75 00:18:59,648 --> 00:19:00,150 >> Thank you, Council 76 00:19:00,150 --> 00:19:00,615 PRESIDENT. 77 00:19:00,615 --> 00:19:03,615 I will now now highlight 78 00:19:05,120 --> 00:19:05,754 the slide on the screen that 79 00:19:05,754 --> 00:19:06,421 reviews how the public can 80 00:19:06,421 --> 00:19:07,220 offer their public testimony 81 00:19:07,220 --> 00:19:09,220 during today's meeting. 82 00:19:10,959 --> 00:19:11,693 If you are in person please 83 00:19:11,693 --> 00:19:12,427 complete a speaker slip located 84 00:19:12,427 --> 00:19:13,280 at the entrance of chambers and 85 00:19:13,280 --> 00:19:16,628 bring it to the front of 86 00:19:17,366 --> 00:19:18,330 the room No further in-person 87 00:19:18,330 --> 00:19:18,667 testimony will be taken once 88 00:19:18,667 --> 00:19:19,334 the Council begins Virtual 89 00:19:19,334 --> 00:19:21,734 testimony for better meeting 90 00:19:23,205 --> 00:19:23,872 management purposes each 91 00:19:23,872 --> 00:19:24,408 speaker will have one minute 92 00:19:24,408 --> 00:19:26,808 per item per person. 93 00:19:27,943 --> 00:19:28,643 If you would like to speak on 94 00:19:28,643 --> 00:19:29,244 three or more items you will 95 00:19:29,244 --> 00:19:29,578 have a maximum of three 96 00:19:29,578 --> 00:19:31,578 minutes. 97 00:19:34,783 --> 00:19:35,651 All right. 98 00:19:35,651 --> 00:19:36,285 Thank you Deputy Clerk And as a 99 00:19:36,285 --> 00:19:36,985 reminder non agenda public 100 00:19:36,985 --> 00:19:37,653 comment which will be taken at 101 00:19:37,653 --> 00:19:39,855 the end of the session with 102 00:19:39,855 --> 00:19:40,388 the opportunity to speak freely 103 00:19:40,388 --> 00:19:40,956 on items within city 104 00:19:40,956 --> 00:19:41,557 jurisdiction items on 105 00:19:41,557 --> 00:19:43,957 the docket we encourage 106 00:19:45,627 --> 00:19:46,361 the public to offer their 107 00:19:46,361 --> 00:19:47,620 testimony to inform the Council 108 00:19:47,620 --> 00:19:49,462 members of their consideration 109 00:19:51,767 --> 00:19:52,710 or deliberations on that docket 110 00:19:52,710 --> 00:19:52,701 item. 111 00:19:52,701 --> 00:19:53,402 So with that Deputy Clerk 112 00:19:53,402 --> 00:19:56,402 please read the closed session 113 00:19:58,707 --> 00:19:59,408 items into the record. 114 00:19:59,408 --> 00:20:00,142 Conference with Legal Counsel 115 00:20:00,142 --> 00:20:02,542 Existing litigation pursuant to 116 00:20:03,746 --> 00:20:04,279 California Government Code 117 00:20:04,279 --> 00:20:06,279 Section 5495 6.91 c. 118 00:20:10,352 --> 00:20:11,153 S one Sandra Silva versus City 119 00:20:11,153 --> 00:20:11,887 of San Diego at all the to 120 00:20:11,887 --> 00:20:12,154 repeat versus city of San Diego 121 00:20:12,154 --> 00:20:14,154 c. 122 00:20:15,157 --> 00:20:15,858 S three Maria del Rosario Nunez 123 00:20:15,858 --> 00:20:16,158 Munoz versus City of San Diego 124 00:20:16,158 --> 00:20:18,158 c. 125 00:20:21,530 --> 00:20:22,198 S four Jesse Torres versus 126 00:20:22,198 --> 00:20:22,798 Civil Service Commission of 127 00:20:22,798 --> 00:20:26,398 the city of San Diego c. 128 00:20:26,468 --> 00:20:27,169 S five Denise Wadsworth at all 129 00:20:27,169 --> 00:20:27,436 versus City of San Diego at 130 00:20:27,436 --> 00:20:29,371 all. 131 00:20:29,371 --> 00:20:30,720 All right. 132 00:20:30,720 --> 00:20:32,472 >> With that please proceed 133 00:20:35,978 --> 00:20:36,478 with public comment. 134 00:20:36,478 --> 00:20:37,213 >> Thank you. 135 00:20:37,213 --> 00:20:40,213 We will begin with in-person 136 00:20:42,585 --> 00:20:43,318 public comment. 137 00:20:43,318 --> 00:20:43,652 Jacob Lewis Edwards please come 138 00:20:43,652 --> 00:20:45,652 forward. 139 00:20:47,823 --> 00:20:48,791 You are requested to speak on c 140 00:20:48,791 --> 00:20:49,910 us one c us two and see us 141 00:20:49,910 --> 00:20:49,959 three. 142 00:20:49,959 --> 00:20:52,959 >> You'll have three minutes to 143 00:20:54,300 --> 00:20:54,797 speak. 144 00:20:54,797 --> 00:20:58,397 Thank you members of our city 145 00:21:00,690 --> 00:21:00,670 council and allow me to speak 146 00:21:00,670 --> 00:21:01,503 in front of you. 147 00:21:01,503 --> 00:21:05,103 I've spoken from you about many 148 00:21:06,241 --> 00:21:06,976 things and these items include 149 00:21:06,976 --> 00:21:10,576 lawsuits to the city of reading 150 00:21:12,214 --> 00:21:12,948 slips and falls and such. 151 00:21:12,948 --> 00:21:13,215 i'm going to speak upon myself 152 00:21:13,215 --> 00:21:14,116 now. 153 00:21:14,116 --> 00:21:17,716 I usually speak upon for what 154 00:21:18,487 --> 00:21:19,422 is going on in a general sense. 155 00:21:19,422 --> 00:21:23,622 I spoke to you about how our 156 00:21:24,526 --> 00:21:25,228 cyber networks were hijacked 157 00:21:25,228 --> 00:21:25,862 going around eight years ago. 158 00:21:25,862 --> 00:21:28,862 My uncle his possession of 159 00:21:30,299 --> 00:21:30,867 the dhs over our country 160 00:21:30,867 --> 00:21:31,234 cybersecurity networks 161 00:21:31,234 --> 00:21:31,834 hijacked. 162 00:21:31,834 --> 00:21:32,502 I'm sorry to interrupt. 163 00:21:32,502 --> 00:21:33,690 Can you speak to the closed 164 00:21:33,690 --> 00:21:35,469 session items that you 165 00:21:37,206 --> 00:21:38,700 identified as opposed to a now? 166 00:21:38,700 --> 00:21:41,511 Yes, I am getting to that, sir. 167 00:21:41,511 --> 00:21:42,244 I'm getting to that And that 168 00:21:42,244 --> 00:21:42,945 handful of federal field agents 169 00:21:42,945 --> 00:21:45,945 assisted the mob in hijacking 170 00:21:47,617 --> 00:21:48,251 our federal government agencies 171 00:21:48,251 --> 00:21:48,885 flooding terrorized along 172 00:21:48,885 --> 00:21:49,585 the way by them pestered, 173 00:21:49,585 --> 00:21:51,585 tormented, harassed, harassed 174 00:21:52,622 --> 00:21:53,222 any trace of anything I've gone 175 00:21:53,222 --> 00:21:56,222 through wiped out and it 176 00:21:59,596 --> 00:22:00,330 continues to this day now is 177 00:22:00,330 --> 00:22:03,930 prevented that until I get into 178 00:22:05,100 --> 00:22:05,802 a shelter if I am able to get 179 00:22:05,802 --> 00:22:06,202 into a shelter and that is here 180 00:22:06,202 --> 00:22:08,202 in the city. 181 00:22:09,372 --> 00:22:10,106 It's set up there on customer 182 00:22:10,106 --> 00:22:10,740 tormented, harassed, terrorized 183 00:22:10,740 --> 00:22:12,740 people, given assignments 184 00:22:15,445 --> 00:22:16,245 within the shelter to hurt me. 185 00:22:16,245 --> 00:22:16,813 And it all comes from federal 186 00:22:16,813 --> 00:22:18,813 activity currently and 187 00:22:21,351 --> 00:22:21,684 prevented from getting into a 188 00:22:21,684 --> 00:22:22,385 shelter. 189 00:22:22,385 --> 00:22:23,520 I sleep at the front door here 190 00:22:23,520 --> 00:22:26,652 at the Civic Center to stay 191 00:22:26,990 --> 00:22:27,924 safe under a camera. 192 00:22:27,924 --> 00:22:32,124 But I go through even here I 193 00:22:32,929 --> 00:22:33,263 wouldn't sue the city of San 194 00:22:33,263 --> 00:22:34,230 Diego. 195 00:22:34,230 --> 00:22:34,898 I love this city but I I'd like 196 00:22:34,898 --> 00:22:38,101 to bring to your attention I 197 00:22:38,101 --> 00:22:38,835 mean I could file a lawsuit but 198 00:22:38,835 --> 00:22:39,402 I'm not but I'm going to bring 199 00:22:39,402 --> 00:22:41,802 it to your attention. 200 00:22:43,472 --> 00:22:44,173 Just two nights ago sleeping 201 00:22:44,173 --> 00:22:44,908 right here at the front door. 202 00:22:44,908 --> 00:22:47,908 Three guys nice designer jeans, 203 00:22:49,379 --> 00:22:50,800 nice shoes And it was overnight 204 00:22:50,800 --> 00:22:50,680 standing right over me loudly 205 00:22:50,680 --> 00:22:52,680 conversating being rude. 206 00:22:54,784 --> 00:22:55,418 It was very unruly over 207 00:22:55,418 --> 00:22:57,818 somebody trying to sleep. 208 00:23:00,557 --> 00:23:01,290 I mentioned that to them so 209 00:23:01,290 --> 00:23:01,958 please have some consideration. 210 00:23:01,958 --> 00:23:04,958 And I mentioned how federal 211 00:23:05,228 --> 00:23:06,960 field agents who terrorize me 212 00:23:06,960 --> 00:23:06,863 will set people up to do this. 213 00:23:06,863 --> 00:23:10,463 I'm not saying that's the case 214 00:23:10,867 --> 00:23:11,535 but it sure seems so. 215 00:23:11,535 --> 00:23:12,435 They got very angry at me. 216 00:23:12,435 --> 00:23:16,139 One of them pulls his belt off, 217 00:23:16,139 --> 00:23:16,906 stands over me and says 218 00:23:16,906 --> 00:23:21,106 Threaten to beat me in a very 219 00:23:21,711 --> 00:23:22,479 aggressive threatening manner. 220 00:23:22,479 --> 00:23:23,213 I said Now you're going to 221 00:23:23,213 --> 00:23:23,880 threaten to beat a homeless guy 222 00:23:23,880 --> 00:23:26,880 that you were standing over. 223 00:23:27,830 --> 00:23:27,918 I said Really? 224 00:23:27,918 --> 00:23:31,518 He got more abrasive cop bag 225 00:23:31,626 --> 00:23:32,322 that he So I walked off and 226 00:23:32,322 --> 00:23:34,322 called 911911 dispatchers will 227 00:23:36,827 --> 00:23:37,494 not take a report from any of 228 00:23:37,494 --> 00:23:38,195 the activity that I've gone 229 00:23:38,195 --> 00:23:41,795 through in the past It struck 230 00:23:42,265 --> 00:23:42,933 me from reporting anything 231 00:23:42,933 --> 00:23:45,933 The dispatcher wanted me to 232 00:23:47,871 --> 00:23:48,505 confirm my telephone number 233 00:23:48,505 --> 00:23:50,905 before he would dispatch 234 00:23:53,110 --> 00:23:53,910 anybody in an emergency call. 235 00:23:53,910 --> 00:23:54,311 >> That's not normal protocol 236 00:23:54,311 --> 00:23:54,911 in any city. 237 00:23:54,911 --> 00:23:55,312 Usually it's a dispatch 238 00:23:55,312 --> 00:23:57,312 immediately. 239 00:23:58,315 --> 00:23:59,820 That's what I got. 240 00:23:59,820 --> 00:23:59,783 Thank you for your comment that 241 00:23:59,783 --> 00:24:00,830 that concludes the witness who 242 00:24:00,830 --> 00:24:02,830 died. 243 00:24:03,286 --> 00:24:03,920 And for the record you did not 244 00:24:03,920 --> 00:24:04,588 speak to any of the closed 245 00:24:04,588 --> 00:24:07,588 session items so thank you. 246 00:24:07,958 --> 00:24:08,692 I'm a human being. 247 00:24:08,692 --> 00:24:09,159 That does conclude in-person 248 00:24:09,159 --> 00:24:11,159 public comment. 249 00:24:12,529 --> 00:24:13,163 I've started the five minute 250 00:24:13,163 --> 00:24:13,897 timer in council chambers. 251 00:24:13,897 --> 00:24:14,598 We will now turn to the virtual 252 00:24:14,598 --> 00:24:16,967 care in which there are 253 00:24:16,967 --> 00:24:17,467 currently three participants 254 00:24:17,467 --> 00:24:19,467 wishing to speak. 255 00:24:21,972 --> 00:24:22,271 We will first go to original 256 00:24:22,271 --> 00:24:24,271 draft. 257 00:24:26,609 --> 00:24:27,277 Could you please indicate which 258 00:24:27,277 --> 00:24:30,277 closed session item or items 259 00:24:32,150 --> 00:24:32,882 you wish to speak to me? 260 00:24:32,882 --> 00:24:33,183 I'm going to touch on all of 261 00:24:33,183 --> 00:24:33,483 them. 262 00:24:33,483 --> 00:24:35,483 Okay. 263 00:24:36,530 --> 00:24:36,553 You have three minutes. 264 00:24:36,553 --> 00:24:36,854 >> Please proceed. 265 00:24:36,854 --> 00:24:37,654 Okay. 266 00:24:37,654 --> 00:24:40,654 So with these continued trips 267 00:24:41,580 --> 00:24:41,792 and fall incidents I mean it's 268 00:24:41,792 --> 00:24:44,792 quite ridiculous how much money 269 00:24:45,828 --> 00:24:46,596 we wind up spending to in 270 00:24:46,596 --> 00:24:49,596 settlements when you know just 271 00:24:51,601 --> 00:24:52,370 these problems can be fixed and 272 00:24:52,370 --> 00:24:55,370 you know, knowing that someone 273 00:24:56,640 --> 00:25:00,240 has tripped and fall fell in 274 00:25:01,177 --> 00:25:01,945 these areas or had an incident 275 00:25:01,945 --> 00:25:02,479 there, you know, have you gone 276 00:25:02,479 --> 00:25:04,479 and mitigated that? 277 00:25:06,216 --> 00:25:06,850 Is that something that you 278 00:25:06,850 --> 00:25:07,518 know, was instantly put on 279 00:25:07,518 --> 00:25:11,718 the list of things to do to 280 00:25:12,220 --> 00:25:12,690 make sure that there won't be 281 00:25:12,690 --> 00:25:13,490 other incidents that arise? 282 00:25:13,490 --> 00:25:16,961 And I find it interesting as 283 00:25:16,961 --> 00:25:17,661 well that some of you say this 284 00:25:17,661 --> 00:25:17,962 case arises from a slip and 285 00:25:17,962 --> 00:25:19,962 fall. 286 00:25:22,199 --> 00:25:22,900 This case arises from a slip 287 00:25:22,900 --> 00:25:23,667 and fall and then it's like 288 00:25:23,667 --> 00:25:26,667 this matter arises from an 289 00:25:26,803 --> 00:25:27,237 alleged trip and fall on 290 00:25:27,237 --> 00:25:29,237 the sidewalk. 291 00:25:31,375 --> 00:25:32,760 So I mean what leads you to 292 00:25:32,760 --> 00:25:35,676 treat the case in that manner 293 00:25:36,680 --> 00:25:37,381 And then for you you know 294 00:25:37,381 --> 00:25:40,981 the case five in the Wadsworth 295 00:25:41,519 --> 00:25:42,319 case, you know this one also it 296 00:25:42,319 --> 00:25:45,923 says this case arises out of an 297 00:25:45,923 --> 00:25:46,590 alleged scooter incident But 298 00:25:46,590 --> 00:25:49,590 this is an actual death. 299 00:25:50,928 --> 00:25:51,462 Somebody died and due to 300 00:25:51,462 --> 00:25:52,196 dangerous condition. 301 00:25:52,196 --> 00:25:55,900 So I feel like when you guys 302 00:25:55,900 --> 00:25:56,534 want to, you know, go under 303 00:25:56,534 --> 00:25:57,168 the Brown Act and say that 304 00:25:57,168 --> 00:25:59,568 you're like providing just 305 00:26:00,471 --> 00:26:01,171 enough information for a 306 00:26:01,171 --> 00:26:01,838 summary I mean you're leaving 307 00:26:01,838 --> 00:26:04,238 out some pretty significant 308 00:26:05,809 --> 00:26:08,809 information and you know, for 309 00:26:09,981 --> 00:26:10,748 the people to know and you know 310 00:26:10,748 --> 00:26:14,818 to for someone to have died due 311 00:26:14,818 --> 00:26:15,519 to this incident you know, and 312 00:26:15,519 --> 00:26:16,386 you to to consider it alleged 313 00:26:16,386 --> 00:26:19,790 in the other ones you know are 314 00:26:19,790 --> 00:26:20,658 obviously true or whatever you 315 00:26:20,658 --> 00:26:24,258 know it just kind of discredits 316 00:26:24,829 --> 00:26:28,429 the person dying it feels like 317 00:26:28,799 --> 00:26:29,433 And then with this Jesse Taurus 318 00:26:29,433 --> 00:26:30,670 case and the Civil Service 319 00:26:30,670 --> 00:26:32,467 Commission, you know, this 320 00:26:34,405 --> 00:26:34,939 officer was engaged in 321 00:26:34,939 --> 00:26:35,573 misconduct off duty. 322 00:26:35,573 --> 00:26:38,573 And so, you know, officer 323 00:26:39,911 --> 00:26:44,111 should be held to a, you know, 324 00:26:44,549 --> 00:26:45,316 standard much like the people. 325 00:26:45,316 --> 00:26:46,170 And I find that the people are 326 00:26:46,170 --> 00:26:49,486 held to a higher standard than 327 00:26:49,486 --> 00:26:50,210 law enforcement and or any kind 328 00:26:50,210 --> 00:26:50,721 of public official. 329 00:26:50,721 --> 00:26:54,259 And you know, when the people 330 00:26:54,259 --> 00:26:54,959 engage in crimes, you know you 331 00:26:54,959 --> 00:26:55,626 want to hold them accountable. 332 00:26:55,626 --> 00:26:58,730 But then we have, you know, 333 00:26:58,730 --> 00:26:59,596 officers whether it's on duty 334 00:26:59,596 --> 00:27:03,196 or off duty and they're engaged 335 00:27:03,868 --> 00:27:04,535 in misconduct abuse, you know, 336 00:27:04,535 --> 00:27:05,360 abuse of power or different 337 00:27:05,360 --> 00:27:07,360 things like that. 338 00:27:08,506 --> 00:27:09,207 I mean. 339 00:27:09,207 --> 00:27:09,974 Andrea Ebbing you know, within 340 00:27:09,974 --> 00:27:12,974 Anthony Warner I mean he 341 00:27:13,645 --> 00:27:14,379 brutally assaulted her and 342 00:27:14,379 --> 00:27:15,213 she's sitting in jail right now 343 00:27:15,213 --> 00:27:18,549 and they made her do a 344 00:27:18,549 --> 00:27:19,217 competency evaluation and they 345 00:27:19,217 --> 00:27:19,918 have deemed her incompetent 346 00:27:19,918 --> 00:27:22,318 which is absolutely ridiculous 347 00:27:23,521 --> 00:27:24,255 which means that stalls of 348 00:27:24,255 --> 00:27:25,189 proceedings and all of this And 349 00:27:25,189 --> 00:27:27,825 so it's like you guys wind up 350 00:27:27,825 --> 00:27:28,626 criminal izing the people when 351 00:27:28,626 --> 00:27:31,626 they've been abused by law 352 00:27:32,297 --> 00:27:33,264 enforcement. 353 00:27:33,264 --> 00:27:37,302 So I mean this man needs to be 354 00:27:37,302 --> 00:27:37,969 held to a standard much like 355 00:27:37,969 --> 00:27:38,703 the people and even higher I 356 00:27:38,703 --> 00:27:41,703 would say thank you very 357 00:27:42,600 --> 00:27:42,673 comment. 358 00:27:42,673 --> 00:27:43,340 The caller did speak to all 359 00:27:43,340 --> 00:27:46,340 the closed session items So 360 00:27:46,778 --> 00:27:47,478 thank you very much. 361 00:27:47,478 --> 00:27:50,478 Our next virtual commenter is 362 00:27:51,883 --> 00:27:52,750 with the caller with the last 363 00:27:52,750 --> 00:27:55,750 four digits 8700 please tell us 364 00:27:56,154 --> 00:27:59,754 which items you wish to speak 365 00:28:05,296 --> 00:28:05,663 to and begin your comments. 366 00:28:05,663 --> 00:28:06,640 Excuse me. 367 00:28:06,640 --> 00:28:08,640 Thank you. 368 00:28:11,236 --> 00:28:14,836 Deputy Clerk Joy is Senator and 369 00:28:15,473 --> 00:28:15,791 I would speak on all of them. 370 00:28:15,791 --> 00:28:16,241 Okay. 371 00:28:16,241 --> 00:28:18,241 Please proceed. 372 00:28:19,277 --> 00:28:23,477 And number one which is a trip 373 00:28:24,182 --> 00:28:24,916 and fall accident again I'm 374 00:28:24,916 --> 00:28:28,516 going to speak to the public 375 00:28:28,753 --> 00:28:29,521 deer public I really encourage 376 00:28:29,521 --> 00:28:33,121 you to claim your own self 377 00:28:33,792 --> 00:28:34,458 safety and be your own advocate 378 00:28:34,458 --> 00:28:38,580 when you're out walking as I 379 00:28:38,797 --> 00:28:39,364 try to do because it's 380 00:28:39,364 --> 00:28:40,310 dangerous out there on 381 00:28:40,310 --> 00:28:43,301 the sidewalks and we need to 382 00:28:43,301 --> 00:28:45,701 watch out for ourselves. 383 00:28:46,404 --> 00:28:47,372 So please consider that I'm 384 00:28:47,372 --> 00:28:51,572 number two which is a slip and 385 00:28:53,612 --> 00:28:54,479 fall incident and well I'll say 386 00:28:54,479 --> 00:28:57,516 on that is incident versus an 387 00:28:57,516 --> 00:29:00,516 accident doesn't seem as solid 388 00:29:01,953 --> 00:29:02,721 a case for the plaintiff here. 389 00:29:02,721 --> 00:29:05,624 I am not sure on that. 390 00:29:05,624 --> 00:29:06,491 So on number three alleged trip 391 00:29:06,491 --> 00:29:10,910 and fall on sidewalk so with 392 00:29:11,129 --> 00:29:14,729 alleged I'm not clear again yet 393 00:29:15,634 --> 00:29:16,301 what I'm not clear is what 394 00:29:16,301 --> 00:29:17,200 happened and it doesn't seem 395 00:29:17,200 --> 00:29:20,505 like you are either in what's 396 00:29:20,505 --> 00:29:21,173 being presented and that 397 00:29:21,173 --> 00:29:21,840 the evidence will need to be 398 00:29:21,840 --> 00:29:24,840 presented so that you really 399 00:29:25,477 --> 00:29:26,211 can move forward on it. 400 00:29:26,211 --> 00:29:29,715 But best of luck on that. 401 00:29:29,715 --> 00:29:30,415 So item number four which is 402 00:29:30,415 --> 00:29:32,815 the Civil Service Commission 403 00:29:35,421 --> 00:29:39,210 item a writ of mandamus which 404 00:29:39,658 --> 00:29:40,325 in MARCH and it means we 405 00:29:40,325 --> 00:29:43,325 command and also this really 406 00:29:44,229 --> 00:29:44,930 struck me when I looked it up 407 00:29:44,930 --> 00:29:47,930 it is an extraordinary remedy. 408 00:29:48,500 --> 00:29:49,635 So I'm not clear what that 409 00:29:49,635 --> 00:29:53,835 means but I did Google a civil 410 00:29:54,106 --> 00:29:54,640 service commission and they 411 00:29:54,640 --> 00:29:55,400 have a very positive 412 00:29:55,400 --> 00:29:57,400 reputation. 413 00:29:59,144 --> 00:29:59,645 So that was really wonderful to 414 00:29:59,645 --> 00:30:00,346 read, You know, on 415 00:30:00,346 --> 00:30:02,746 the settlements and judgments 416 00:30:04,160 --> 00:30:04,883 which we looked at recently 417 00:30:04,883 --> 00:30:07,283 mostly regarding speedy equal 418 00:30:08,120 --> 00:30:08,787 rights within number one item 419 00:30:08,787 --> 00:30:12,387 of the number of cases that 420 00:30:12,691 --> 00:30:13,392 occur to I And they talked 421 00:30:13,392 --> 00:30:16,392 about speeding up the process 422 00:30:17,329 --> 00:30:17,730 because the costs are 423 00:30:17,730 --> 00:30:18,397 escalating. 424 00:30:18,397 --> 00:30:21,997 So please I don't know when 425 00:30:22,468 --> 00:30:23,680 this termination in 426 00:30:23,680 --> 00:30:23,802 the original added some 427 00:30:23,802 --> 00:30:26,802 information which I didn't know 428 00:30:27,740 --> 00:30:28,474 about so it sounds like a 429 00:30:28,474 --> 00:30:31,643 pretty serious thing and then a 430 00:30:31,643 --> 00:30:32,378 termination is involved So I'll 431 00:30:32,378 --> 00:30:33,212 just send you blessings on that 432 00:30:33,212 --> 00:30:36,812 and best of luck for all 433 00:30:36,815 --> 00:30:39,815 parties In the Scooter incident 434 00:30:41,887 --> 00:30:42,321 which was alleged excuse me 435 00:30:42,321 --> 00:30:42,655 Same incident. 436 00:30:42,655 --> 00:30:42,988 Alleged. 437 00:30:42,988 --> 00:30:44,988 Oh yes. 438 00:30:45,624 --> 00:30:46,324 So there is an incident alleged 439 00:30:46,324 --> 00:30:49,324 e-scooter incident I learned a 440 00:30:51,300 --> 00:30:51,730 lot during our e-scooter time 441 00:30:51,730 --> 00:30:55,330 and when they were present in 442 00:30:55,501 --> 00:30:56,135 San Diego mostly I learned that 443 00:30:56,135 --> 00:30:59,135 we have many levels, many 444 00:30:59,772 --> 00:31:00,639 layers of codes and regular 445 00:31:00,639 --> 00:31:04,239 ations that can tie our hands 446 00:31:04,910 --> 00:31:05,845 in litigation. 447 00:31:05,845 --> 00:31:09,548 I think we learned a lot from 448 00:31:09,548 --> 00:31:12,548 our e-scooter period and it's 449 00:31:14,453 --> 00:31:15,221 it's just a learning lesson for 450 00:31:15,221 --> 00:31:15,487 us and I certainly learned a 451 00:31:15,487 --> 00:31:17,487 lot. 452 00:31:19,859 --> 00:31:20,593 So we move forward and I thank 453 00:31:20,593 --> 00:31:21,260 you very much for listening and 454 00:31:21,260 --> 00:31:24,830 love to all have a beautiful 455 00:31:24,830 --> 00:31:25,531 day and a beautiful week. 456 00:31:25,531 --> 00:31:26,310 Thank you to the caller for 457 00:31:26,310 --> 00:31:28,310 staying on topic. 458 00:31:29,302 --> 00:31:30,200 Thank you for those comments. 459 00:31:30,200 --> 00:31:30,702 Please note that the five 460 00:31:30,702 --> 00:31:31,404 minute timer did conclude with 461 00:31:31,404 --> 00:31:34,404 no additional speakers left in 462 00:31:34,574 --> 00:31:37,574 the queue That does conclude 463 00:31:38,811 --> 00:31:39,212 closed session Public comment 464 00:31:39,212 --> 00:31:39,979 All right. 465 00:31:39,979 --> 00:31:40,746 >> Thank you Deputy Clerk With 466 00:31:40,746 --> 00:31:43,616 that we will now recess into 467 00:31:43,616 --> 00:31:44,383 closed session and reconvene 468 00:31:44,383 --> 00:31:47,983 council today at 2 P.M. Or 469 00:45:05,180 --> 00:45:07,180 shortly thereafter 470 00:46:50,852 --> 00:46:52,852 and then 471 00:46:56,625 --> 00:46:57,125 All right started. 472 00:46:57,125 --> 00:46:57,826 >> Good afternoon. 473 00:46:57,826 --> 00:47:01,426 I will now reconvene the city 474 00:47:01,830 --> 00:47:02,564 council meeting on Monday, JUNE 475 00:47:02,564 --> 00:47:03,232 22nd 2026 that the clerk please 476 00:47:03,232 --> 00:47:06,232 call the Roll Council member 477 00:47:07,469 --> 00:47:09,469 Campbell Council Member 478 00:47:13,209 --> 00:47:13,876 Whitburn Council Member Foster 479 00:47:13,876 --> 00:47:16,276 Council Member Von Wilpert 480 00:47:19,815 --> 00:47:20,416 Council PRESIDENT Pro Tem 481 00:47:20,416 --> 00:47:22,816 The Council Member Campo 482 00:47:25,621 --> 00:47:26,321 Council Member Moreno Council 483 00:47:26,321 --> 00:47:29,321 Member Eli Rivera and Council 484 00:47:31,560 --> 00:47:32,328 PRESIDENT LaCava Present. 485 00:47:32,328 --> 00:47:32,928 Also attending the meeting are 486 00:47:32,928 --> 00:47:34,928 Assistant City Attorney 487 00:47:37,666 --> 00:47:38,367 Michelle Garland Jordan more 488 00:47:38,367 --> 00:47:39,680 fiscal and policy analyst with 489 00:47:39,680 --> 00:47:41,237 the Office of the Independent 490 00:47:41,237 --> 00:47:44,237 Budget Analyst and myself here 491 00:47:47,910 --> 00:47:48,778 Deputy City Clerk Kevin Smith. 492 00:47:48,778 --> 00:47:49,111 All right, a quorum is now 493 00:47:49,111 --> 00:47:49,745 present. 494 00:47:49,745 --> 00:47:50,412 So first of all start off 495 00:47:50,412 --> 00:47:52,812 whether there's any comments 496 00:47:54,416 --> 00:47:55,150 from the mayor's office, 497 00:47:55,150 --> 00:47:55,885 council members, city attorney, 498 00:47:55,885 --> 00:47:58,285 independent budget analyst, our 499 00:48:00,550 --> 00:48:00,790 city clerk and not seeing any 500 00:48:00,790 --> 00:48:01,424 We'll go on Deputy Clerk Please 501 00:48:01,424 --> 00:48:05,240 go over how the public can 502 00:48:06,329 --> 00:48:07,295 offer their testimony. 503 00:48:07,295 --> 00:48:07,963 I will not I don't know how I 504 00:48:07,963 --> 00:48:08,630 like to slide on the screen 505 00:48:08,630 --> 00:48:11,630 their reviews how the public 506 00:48:11,934 --> 00:48:12,501 can offer their public 507 00:48:12,501 --> 00:48:13,350 testimony during this 508 00:48:13,350 --> 00:48:13,669 afternoon's meeting. 509 00:48:13,669 --> 00:48:14,403 The order can be found on 510 00:48:14,403 --> 00:48:17,403 the agenda Summary found online 511 00:48:18,641 --> 00:48:19,800 or at the table in the back of 512 00:48:19,800 --> 00:48:19,675 the room. 513 00:48:19,675 --> 00:48:20,309 If you are in person please 514 00:48:20,309 --> 00:48:20,944 complete the speaker slip 515 00:48:20,944 --> 00:48:23,646 located at the entrance of 516 00:48:23,646 --> 00:48:24,213 chambers and bring it to 517 00:48:24,213 --> 00:48:24,814 the front of the room. 518 00:48:24,814 --> 00:48:25,514 Council ambassadors are 519 00:48:25,514 --> 00:48:28,514 available near the entrance of 520 00:48:29,586 --> 00:48:30,252 chambers and can assist with 521 00:48:30,252 --> 00:48:30,953 questions and speaker slips. 522 00:48:30,953 --> 00:48:31,654 No further in-person testimony 523 00:48:31,654 --> 00:48:35,254 will be taken once the council 524 00:48:35,691 --> 00:48:36,192 begins Virtual testimony. 525 00:48:36,192 --> 00:48:38,192 >> All right. 526 00:48:42,198 --> 00:48:42,865 And as a friendly reminder non 527 00:48:42,865 --> 00:48:43,532 agenda public comment which 528 00:48:43,532 --> 00:48:44,233 will be taken at the end of 529 00:48:44,233 --> 00:48:44,967 the day it's an opportunity to 530 00:48:44,967 --> 00:48:47,936 speak on anything that's within 531 00:48:47,936 --> 00:48:48,571 the broader city of San Diego 532 00:48:48,571 --> 00:48:49,205 Purview docketed items We 533 00:48:49,205 --> 00:48:52,205 request that you speak to 534 00:48:53,910 --> 00:48:54,610 the item itself Inform 535 00:48:54,610 --> 00:48:55,278 the Council about whether you 536 00:48:55,278 --> 00:48:58,878 support an item or reject an 537 00:48:59,815 --> 00:49:00,483 item and your reasons why So 538 00:49:00,483 --> 00:49:03,483 focusing on the docket item 539 00:49:05,221 --> 00:49:05,922 will be appreciated So with 540 00:49:05,922 --> 00:49:08,322 that Deputy Clerk please 541 00:49:14,497 --> 00:49:15,198 introduce item 200 item 200 542 00:49:15,198 --> 00:49:15,698 Public hour Feasibility study 543 00:49:15,698 --> 00:49:16,650 Phase two report. 544 00:49:16,650 --> 00:49:18,650 All right. 545 00:49:20,637 --> 00:49:21,504 Thank you, sir. 546 00:49:21,504 --> 00:49:22,105 And a reminder to everyone this 547 00:49:22,105 --> 00:49:24,505 is an information item. 548 00:49:27,100 --> 00:49:31,210 No motion will be taken And now 549 00:49:31,981 --> 00:49:32,682 settle then please introduce 550 00:49:32,682 --> 00:49:33,382 yourselves for the record and 551 00:49:33,382 --> 00:49:36,982 let us know how much time 552 00:49:43,626 --> 00:49:44,193 you'll need. 553 00:49:44,193 --> 00:49:44,594 >> There we go. 554 00:49:44,594 --> 00:49:44,994 Try again. 555 00:49:44,994 --> 00:49:46,994 There we. 556 00:49:49,966 --> 00:49:50,533 Keep on Heather Rider, deputy 557 00:49:50,533 --> 00:49:51,167 director for energy in 558 00:49:51,167 --> 00:49:51,535 the Department of General 559 00:49:51,535 --> 00:49:52,168 Services. 560 00:49:52,168 --> 00:49:54,568 We need about 15 minutes. 561 00:49:55,705 --> 00:49:56,600 All right, Begin when you're 562 00:49:56,600 --> 00:49:56,373 ready. 563 00:49:56,373 --> 00:49:56,906 All right. 564 00:49:56,906 --> 00:49:57,274 Thank you very much. 565 00:49:57,274 --> 00:49:57,974 Thank you. 566 00:49:57,974 --> 00:50:00,374 Council PRESIDENT, members of 567 00:50:01,678 --> 00:50:02,345 council as many of you are 568 00:50:02,345 --> 00:50:02,912 aware and as a corollary to 569 00:50:02,912 --> 00:50:05,912 the award of the Genie 570 00:50:07,283 --> 00:50:07,917 franchise, the city started 571 00:50:07,917 --> 00:50:10,317 studying alternatives to a 572 00:50:12,789 --> 00:50:13,456 franchise agreement for 573 00:50:13,456 --> 00:50:14,190 the delivery of electricity 574 00:50:14,190 --> 00:50:14,891 within the city boundary and as 575 00:50:14,891 --> 00:50:17,291 public power feasibility that 576 00:50:19,695 --> 00:50:20,297 study was split into two parts. 577 00:50:20,297 --> 00:50:20,930 The Phase one report was 578 00:50:20,930 --> 00:50:23,330 brought to council in 579 00:50:23,867 --> 00:50:24,635 the summer of 2023. 580 00:50:24,635 --> 00:50:28,235 It did find basic economic and 581 00:50:29,272 --> 00:50:29,973 technical feasibility so we 582 00:50:29,973 --> 00:50:30,740 moved into phase two which was 583 00:50:30,740 --> 00:50:33,740 a much deeper dive into 584 00:50:35,445 --> 00:50:36,120 the economic and technical 585 00:50:36,120 --> 00:50:36,612 feasibility as well as 586 00:50:36,612 --> 00:50:38,612 incorporating changes in 587 00:50:41,918 --> 00:50:42,652 the regulatory space that have 588 00:50:42,652 --> 00:50:43,220 happened between those periods. 589 00:50:43,220 --> 00:50:46,220 We brought on new gen 590 00:50:48,558 --> 00:50:49,192 strategies to act as our 591 00:50:49,192 --> 00:50:49,793 subject matter expert and 592 00:50:49,793 --> 00:50:50,527 technical consultant in 593 00:50:50,527 --> 00:50:54,127 executing that study And so I'm 594 00:50:54,164 --> 00:50:54,765 going to pass it over to Scott 595 00:50:54,765 --> 00:50:55,650 to go over the findings. 596 00:50:55,650 --> 00:50:55,565 Great. 597 00:50:55,565 --> 00:50:56,320 Thank you Heather. 598 00:50:56,320 --> 00:50:58,320 Good afternoon. 599 00:50:59,736 --> 00:51:00,470 Council PRESIDENT Council 600 00:51:00,470 --> 00:51:01,370 members Staff As I mentioned my 601 00:51:01,370 --> 00:51:01,738 name is Scott Burnham. 602 00:51:01,738 --> 00:51:04,738 I'm a partner and project 603 00:51:07,440 --> 00:51:07,411 manager with New Data Strategy 604 00:51:07,411 --> 00:51:08,111 Solutions. 605 00:51:08,111 --> 00:51:11,711 I'm joined here today with DR. 606 00:51:12,182 --> 00:51:12,849 Nelson Beck along with Siemens 607 00:51:12,849 --> 00:51:13,517 Engineering, Andrew Atwater 608 00:51:13,517 --> 00:51:15,452 with Beebe and a consultant 609 00:51:15,452 --> 00:51:15,786 that assisted us with the study 610 00:51:15,786 --> 00:51:17,786 . 611 00:51:22,259 --> 00:51:22,726 Excellent. 612 00:51:22,726 --> 00:51:23,393 >> All right. 613 00:51:23,393 --> 00:51:24,161 The bottom line in terms of 614 00:51:24,161 --> 00:51:28,361 the phase two study is that we 615 00:51:28,598 --> 00:51:29,299 found that the analysis for 616 00:51:29,299 --> 00:51:32,299 developing and creating an mcu 617 00:51:34,304 --> 00:51:35,720 and municipal electric utility 618 00:51:35,720 --> 00:51:35,639 from the San Diego Gas Electric 619 00:51:35,639 --> 00:51:36,306 Genie assets was both 620 00:51:36,306 --> 00:51:38,306 economically and technically 621 00:51:40,410 --> 00:51:41,178 feasible. 622 00:51:41,178 --> 00:51:41,845 The results depend on the value 623 00:51:41,845 --> 00:51:45,445 of the assets that the city 624 00:51:46,316 --> 00:51:47,117 pays to acquire them. 625 00:51:47,117 --> 00:51:47,818 We conducted analysis using two 626 00:51:47,818 --> 00:51:48,185 approaches to cost approaches 627 00:51:48,185 --> 00:51:50,185 to value. 628 00:51:52,956 --> 00:51:53,690 We'll talk more about that 629 00:51:53,690 --> 00:51:54,425 The Oakland original costs less 630 00:51:54,425 --> 00:51:58,250 depreciation at the low end and 631 00:51:58,795 --> 00:51:59,497 replacement costs new less 632 00:51:59,497 --> 00:52:00,970 depreciation on the high end. 633 00:52:00,970 --> 00:52:02,497 This analysis focuses on 634 00:52:05,335 --> 00:52:06,690 the delivery assets only 635 00:52:06,690 --> 00:52:09,690 There's no generation assets to 636 00:52:10,274 --> 00:52:10,941 be acquired from Genie 637 00:52:10,941 --> 00:52:11,642 The generation power supply 638 00:52:11,642 --> 00:52:15,242 portion of the mcu was assumed 639 00:52:17,314 --> 00:52:18,115 to be supplied by sdp. 640 00:52:18,115 --> 00:52:18,816 >> This data currently serves 641 00:52:18,816 --> 00:52:22,416 the majority of the city Load 642 00:52:23,754 --> 00:52:26,754 results suggest a range of 643 00:52:27,524 --> 00:52:28,392 savings between 6 and 6% to 16% 644 00:52:28,392 --> 00:52:31,992 depending on the assets paid to 645 00:52:32,562 --> 00:52:33,263 be acquired between 7 billion 646 00:52:33,263 --> 00:52:36,263 and $19 billion At the 30 year 647 00:52:38,268 --> 00:52:38,569 conclusion of the 30 year study 648 00:52:38,569 --> 00:52:39,303 . 649 00:52:39,303 --> 00:52:40,400 More broadly, the analysis that 650 00:52:40,400 --> 00:52:43,604 we conducted was what we call 651 00:52:44,274 --> 00:52:44,775 an overnight analysis. 652 00:52:44,775 --> 00:52:45,442 It's assuming that 653 00:52:45,442 --> 00:52:47,842 the municipal utility would 654 00:52:50,848 --> 00:52:51,215 essentially start within 655 00:52:51,215 --> 00:52:51,748 the year. 656 00:52:51,748 --> 00:52:52,416 That's not feasible. 657 00:52:52,416 --> 00:52:56,160 We know that We realize that 658 00:52:56,954 --> 00:52:57,655 will take at least 10 or 15 659 00:52:57,655 --> 00:52:57,988 years to establish a municipal 660 00:52:57,988 --> 00:52:59,988 utility. 661 00:53:02,726 --> 00:53:03,460 But the approach uses an 662 00:53:03,460 --> 00:53:04,195 overnight analysis as a prudent 663 00:53:04,195 --> 00:53:07,195 approach to understand the cost 664 00:53:07,832 --> 00:53:10,232 and determine the feasibility. 665 00:53:14,405 --> 00:53:15,106 We came before you 666 00:53:15,106 --> 00:53:15,806 approximately three years ago 667 00:53:15,806 --> 00:53:16,173 with the results of the Phase 668 00:53:16,173 --> 00:53:16,841 one study. 669 00:53:16,841 --> 00:53:18,841 >> There's been significant 670 00:53:20,444 --> 00:53:21,112 changes since then. 671 00:53:21,112 --> 00:53:21,812 The relative to the study we 672 00:53:21,812 --> 00:53:24,212 had additional information and 673 00:53:27,351 --> 00:53:28,190 detailed data provided by Jenny 674 00:53:28,190 --> 00:53:28,653 and that informed a lot of 675 00:53:28,653 --> 00:53:31,653 the results of the study. 676 00:53:33,157 --> 00:53:33,824 We also recognize there have 677 00:53:33,824 --> 00:53:34,458 been significant changes in 678 00:53:34,458 --> 00:53:35,126 policy and the regulatory 679 00:53:35,126 --> 00:53:35,893 environment that also impact 680 00:53:35,893 --> 00:53:39,493 the study and the Phase two 681 00:53:42,700 --> 00:53:43,301 report Phase two report In 682 00:53:43,301 --> 00:53:43,901 terms of the changes in 683 00:53:43,901 --> 00:53:44,468 the utility environment, 684 00:53:44,468 --> 00:53:46,868 certainly a change in 685 00:53:48,906 --> 00:53:49,473 the landscape relative to 686 00:53:49,473 --> 00:53:50,174 the assets themselves. 687 00:53:50,174 --> 00:53:53,174 Again, the information we got 688 00:53:54,345 --> 00:53:54,946 from Jenny that information 689 00:53:54,946 --> 00:53:55,479 helped improve the cost 690 00:53:55,479 --> 00:53:57,479 analysis relative to 691 00:54:00,184 --> 00:54:00,651 the physical separation of 692 00:54:00,651 --> 00:54:01,519 the two systems. 693 00:54:01,519 --> 00:54:02,220 If the mou is to be formed it 694 00:54:02,220 --> 00:54:04,620 would be electrically isolated 695 00:54:06,224 --> 00:54:06,958 from Jenny who have the ability 696 00:54:06,958 --> 00:54:07,658 to do so and that would require 697 00:54:07,658 --> 00:54:10,580 investment on behalf of 698 00:54:11,729 --> 00:54:12,496 the city. 699 00:54:12,496 --> 00:54:13,970 In terms of the regulatory 700 00:54:13,970 --> 00:54:15,970 environment, the process 701 00:54:18,870 --> 00:54:19,537 continues to evolve relative to 702 00:54:19,537 --> 00:54:23,137 how the cpc would develop or 703 00:54:25,109 --> 00:54:25,810 what would determine the cost 704 00:54:25,810 --> 00:54:26,144 for the mcu to acquire these 705 00:54:26,144 --> 00:54:26,811 assets. 706 00:54:26,811 --> 00:54:27,511 As you're aware, the city of 707 00:54:27,511 --> 00:54:30,511 San Francisco is going through 708 00:54:31,349 --> 00:54:32,149 a similar exercise. 709 00:54:32,149 --> 00:54:32,750 They're a little further ahead. 710 00:54:32,750 --> 00:54:33,384 They've been to the cpc. 711 00:54:33,384 --> 00:54:35,784 They have some preliminary 712 00:54:36,587 --> 00:54:37,188 results relative to how the cpc 713 00:54:37,188 --> 00:54:37,755 would then then look at 714 00:54:37,755 --> 00:54:39,755 the acquisition costs. 715 00:54:42,760 --> 00:54:43,494 But there are other policy and 716 00:54:43,494 --> 00:54:44,162 risks to be considered in terms 717 00:54:44,162 --> 00:54:46,562 of climate change, commodity 718 00:54:48,399 --> 00:54:49,100 cost, wildfire mitigation as 719 00:54:49,100 --> 00:54:50,335 you know that's a big ticket 720 00:54:50,335 --> 00:54:53,935 item relative to costs and cost 721 00:54:57,800 --> 00:54:57,742 recovery. 722 00:54:57,742 --> 00:55:00,742 The Phase two approach focuses 723 00:55:02,780 --> 00:55:03,548 on a 30 year cash needs. 724 00:55:03,548 --> 00:55:04,148 It develops what we call a 725 00:55:04,148 --> 00:55:04,482 revenue requirement for 726 00:55:04,482 --> 00:55:05,150 the mcu. 727 00:55:05,150 --> 00:55:08,150 That's the total dollars to 728 00:55:09,854 --> 00:55:10,588 operate the mcu in comparison 729 00:55:10,588 --> 00:55:11,256 to the total dollars paid to us 730 00:55:11,256 --> 00:55:14,256 based on existing rates and 731 00:55:15,927 --> 00:55:16,728 assumptions about future rates. 732 00:55:16,728 --> 00:55:17,395 For Jenny, as I mentioned, it's 733 00:55:17,395 --> 00:55:19,795 only acquiring assets within 734 00:55:22,167 --> 00:55:22,767 the city primarily distribution 735 00:55:22,767 --> 00:55:25,167 assets but some limited 736 00:55:28,673 --> 00:55:29,407 transmission assets as dcp as 737 00:55:29,407 --> 00:55:30,410 dcp sorry the cta will continue 738 00:55:30,410 --> 00:55:33,410 to provide power supply to 739 00:55:34,120 --> 00:55:34,746 everyone And it's this buildup 740 00:55:34,746 --> 00:55:35,413 of the revenue requirement that 741 00:55:35,413 --> 00:55:39,130 is the crux of the analysis. 742 00:55:39,351 --> 00:55:40,251 So we're looking at the that 743 00:55:40,251 --> 00:55:43,851 the system as mcu compared does 744 00:55:46,558 --> 00:55:47,292 cost on an all in basis 745 00:55:47,292 --> 00:55:47,859 compared to the system as I see 746 00:55:47,859 --> 00:55:50,259 each unit continue and 747 00:55:51,529 --> 00:55:52,163 the status quo the analysis 748 00:55:52,163 --> 00:55:52,797 suggests the that there is 749 00:55:52,797 --> 00:55:55,197 indeed savings it shows 750 00:55:57,235 --> 00:55:57,802 the benefit of public power 751 00:55:57,802 --> 00:55:58,436 there are but current 752 00:55:58,436 --> 00:56:00,436 opportunity for efficiency 753 00:56:03,608 --> 00:56:04,476 local control and cost savings. 754 00:56:04,476 --> 00:56:05,177 Again this is done on what we 755 00:56:05,177 --> 00:56:07,577 call an overnight analysis 756 00:56:09,513 --> 00:56:10,148 recognizing that there would 757 00:56:10,148 --> 00:56:13,148 still be a different time 758 00:56:16,121 --> 00:56:16,755 component to this in terms of 759 00:56:16,755 --> 00:56:17,389 the assets to be acquired. 760 00:56:17,389 --> 00:56:20,389 As I mentioned, almost all 761 00:56:21,359 --> 00:56:22,940 the assets almost all 762 00:56:22,940 --> 00:56:22,728 the assets in the city would be 763 00:56:22,728 --> 00:56:24,728 acquired approximately 800 764 00:56:27,733 --> 00:56:28,300 miles of secondary conductor 765 00:56:28,300 --> 00:56:29,000 conductor line wires, 766 00:56:29,000 --> 00:56:29,368 transformers meters and other 767 00:56:29,368 --> 00:56:31,368 equipment. 768 00:56:33,572 --> 00:56:34,272 The city would be responsible 769 00:56:34,272 --> 00:56:34,773 for serving approximately six 770 00:56:34,773 --> 00:56:36,773 660,000 customers. 771 00:56:40,579 --> 00:56:41,280 The city would also acquire 42 772 00:56:41,280 --> 00:56:41,913 electrical substations within 773 00:56:41,913 --> 00:56:42,614 the municipal boundary and 774 00:56:42,614 --> 00:56:45,140 the sub transmission conductor 775 00:56:47,218 --> 00:56:47,853 between those substations 776 00:56:47,853 --> 00:56:48,453 the city would not acquire 777 00:56:48,453 --> 00:56:50,853 the high voltage system 778 00:56:52,190 --> 00:56:52,958 the bulk transmission system or 779 00:56:52,958 --> 00:56:55,958 any generation assets from a 780 00:56:58,697 --> 00:56:59,431 genie. 781 00:56:59,431 --> 00:57:00,165 As I mentioned, we conducted 782 00:57:00,165 --> 00:57:03,765 what we call a cost based 783 00:57:04,970 --> 00:57:05,704 purchase price analysis. 784 00:57:05,704 --> 00:57:06,505 This cost based analysis begins 785 00:57:06,505 --> 00:57:10,576 on a low end and with the only 786 00:57:10,576 --> 00:57:11,276 older original cost less 787 00:57:11,276 --> 00:57:11,910 depreciation and the high end 788 00:57:11,910 --> 00:57:14,310 replacement cost new less 789 00:57:15,647 --> 00:57:16,348 appreciation In reality 790 00:57:16,348 --> 00:57:16,982 the cost would likely come in 791 00:57:16,982 --> 00:57:19,382 between those two values. 792 00:57:20,319 --> 00:57:21,190 But we developed these bookend 793 00:57:21,190 --> 00:57:23,419 values at $2.4 billion for 794 00:57:24,590 --> 00:57:25,290 original cost of depreciation 795 00:57:25,290 --> 00:57:27,290 and $7.6 billion replacement 796 00:57:30,963 --> 00:57:31,630 cost new less depreciation In a 797 00:57:31,630 --> 00:57:32,331 transaction a prudent seller 798 00:57:32,331 --> 00:57:35,331 likely would likely not accept 799 00:57:37,436 --> 00:57:37,826 our original cost appreciation 800 00:57:37,826 --> 00:57:38,470 . 801 00:57:38,470 --> 00:57:39,204 That's a book value essentially 802 00:57:39,204 --> 00:57:39,905 and a prudent buyer is unlikely 803 00:57:39,905 --> 00:57:42,905 to accept replacement cost new 804 00:57:43,442 --> 00:57:44,109 less depreciation which is why 805 00:57:44,109 --> 00:57:44,777 would in all likelihood that 806 00:57:44,777 --> 00:57:47,777 costs would come in between 807 00:57:49,348 --> 00:57:50,150 those two values somewhere 808 00:57:50,150 --> 00:57:50,716 The difference of that $5.2 809 00:57:50,716 --> 00:57:53,716 billion is significant and it 810 00:57:54,787 --> 00:57:55,521 does in the age of the assets 811 00:57:55,521 --> 00:57:55,888 certainly has an impact on that 812 00:57:55,888 --> 00:57:57,888 valuation. 813 00:58:00,593 --> 00:58:01,227 We also assumed that there 814 00:58:01,227 --> 00:58:01,861 would be additional costs 815 00:58:01,861 --> 00:58:02,594 upfront approximately $912 816 00:58:02,594 --> 00:58:06,194 million of upfront cost to fund 817 00:58:07,990 --> 00:58:07,699 that separation analysis again 818 00:58:07,699 --> 00:58:08,234 creating to electrically 819 00:58:08,234 --> 00:58:10,634 ability to have two 820 00:58:12,638 --> 00:58:13,406 electrically isolated systems 821 00:58:13,406 --> 00:58:14,273 startup costs as well and as 822 00:58:14,273 --> 00:58:17,273 well as $470 million in working 823 00:58:18,911 --> 00:58:19,545 capital. 824 00:58:19,545 --> 00:58:20,246 Startup costs include 825 00:58:20,246 --> 00:58:23,149 the development of the utility 826 00:58:23,149 --> 00:58:23,916 to create an operating utility 827 00:58:23,916 --> 00:58:25,916 ,financial reserves, liquidity 828 00:58:29,789 --> 00:58:30,656 measurements and the like. 829 00:58:30,656 --> 00:58:31,257 This next slide shows a summary 830 00:58:31,257 --> 00:58:31,924 of the key assumptions. 831 00:58:31,924 --> 00:58:34,924 As I mentioned, the purchase 832 00:58:35,327 --> 00:58:35,928 price is probably the most 833 00:58:35,928 --> 00:58:38,928 dramatic key in terms of 834 00:58:39,799 --> 00:58:40,533 the analysis that range between 835 00:58:40,533 --> 00:58:41,200 2.4 billion and 7.6 billion but 836 00:58:41,200 --> 00:58:43,600 also the assumptions around 837 00:58:47,390 --> 00:58:47,640 long term rate growth for ge we 838 00:58:47,640 --> 00:58:50,400 assume 4% per year going 839 00:58:51,611 --> 00:58:52,211 forward That was based on 840 00:58:52,211 --> 00:58:52,912 information available at 841 00:58:52,912 --> 00:58:53,646 the time From the general rate 842 00:58:53,646 --> 00:58:57,246 case it's probably a little bit 843 00:58:58,170 --> 00:58:58,551 lower than historic but we 844 00:58:58,551 --> 00:58:59,252 believe there was a 845 00:58:59,252 --> 00:59:01,252 conservative assumption other 846 00:59:03,823 --> 00:59:04,457 elements include the payment in 847 00:59:04,457 --> 00:59:04,923 lieu of franchise fees and 848 00:59:04,923 --> 00:59:05,625 public benefits. 849 00:59:05,625 --> 00:59:08,625 As I mentioned, the separation 850 00:59:09,729 --> 00:59:10,429 costs, startup costs upfront 851 00:59:10,429 --> 00:59:11,970 working and of course staffing 852 00:59:11,970 --> 00:59:14,970 one of the critical elements 853 00:59:15,340 --> 00:59:15,768 relative to difference between 854 00:59:15,768 --> 00:59:16,435 the phase one and the phase two 855 00:59:16,435 --> 00:59:19,435 analysis was there's a more 856 00:59:19,705 --> 00:59:20,720 detailed analysis around 857 00:59:20,720 --> 00:59:20,706 staffing. 858 00:59:20,706 --> 00:59:21,374 The intent would be to to 859 00:59:21,374 --> 00:59:24,374 address the concerns of ibew 860 00:59:24,977 --> 00:59:27,377 and others and acquire 861 00:59:31,840 --> 00:59:31,851 the workforce from any. 862 00:59:31,851 --> 00:59:34,851 In summary of the results. 863 00:59:36,956 --> 00:59:37,337 We've got two graphics here on 864 00:59:37,337 --> 00:59:37,990 the left. 865 00:59:37,990 --> 00:59:38,624 You can see there's selected 866 00:59:38,624 --> 00:59:41,624 years between the oclc and 867 00:59:42,761 --> 00:59:43,463 again on the low end the rca 868 00:59:43,463 --> 00:59:44,230 and on the high end. 869 00:59:44,230 --> 00:59:45,640 So you can see we're showing 870 00:59:45,640 --> 00:59:47,660 your ten, your 20 and your 30 871 00:59:47,660 --> 00:59:47,867 for the ocd. 872 00:59:47,867 --> 00:59:48,434 So significant savings of $19 873 00:59:48,434 --> 00:59:51,434 billion at the end of 874 00:59:52,972 --> 00:59:53,673 cumulative savings in your 30 875 00:59:53,673 --> 00:59:56,409 the replacement costs new less 876 00:59:56,409 --> 00:59:57,210 appreciation is slightly lower 877 00:59:57,210 --> 01:00:00,210 at $7 billion There is a 878 01:00:01,548 --> 01:00:02,215 crossover in the ocd case It's 879 01:00:02,215 --> 01:00:02,882 year one in which mean you 880 01:00:02,882 --> 01:00:05,882 would show cash positive for 881 01:00:06,819 --> 01:00:07,487 the replacement cost you looked 882 01:00:07,487 --> 01:00:08,870 at less depreciation the old 883 01:00:08,870 --> 01:00:08,788 either higher asset that 884 01:00:08,788 --> 01:00:11,188 crossover occurs and estimated 885 01:00:11,925 --> 01:00:12,625 in year 12 so the city would 886 01:00:12,625 --> 01:00:15,250 not recognize savings upfront 887 01:00:16,196 --> 01:00:19,196 if indeed they purchased a 888 01:00:21,301 --> 01:00:21,968 price at at rc an oldie 889 01:00:21,968 --> 01:00:25,568 The next slide shows on an 890 01:00:27,540 --> 01:00:28,308 annual basis looking out over 891 01:00:28,308 --> 01:00:29,420 the 30 year forecast the period 892 01:00:29,420 --> 01:00:29,776 of the study on the left we saw 893 01:00:29,776 --> 01:00:31,779 the ocr and all the numbers You 894 01:00:31,779 --> 01:00:32,378 can see showing cash positive 895 01:00:32,378 --> 01:00:35,378 there in year one and 896 01:00:38,418 --> 01:00:39,185 continuing to grow over time On 897 01:00:39,185 --> 01:00:39,886 the right we show our you know 898 01:00:39,886 --> 01:00:40,753 you can see that the blue bars 899 01:00:40,753 --> 01:00:43,223 there are the city of San Diego 900 01:00:43,223 --> 01:00:45,692 costs the mcu costs that would 901 01:00:45,692 --> 01:00:46,660 be higher than any costs for 902 01:00:46,660 --> 01:00:49,600 the first 12, 11, 12 years in 903 01:00:51,464 --> 01:00:55,640 the study we did conduct a 904 01:00:56,937 --> 01:00:57,504 sensitivity on the relative to 905 01:00:57,504 --> 01:00:59,504 the assumptions about 906 01:01:01,441 --> 01:01:01,742 the growth rate of the retail 907 01:01:01,742 --> 01:01:02,442 rates. 908 01:01:02,442 --> 01:01:06,420 As I mentioned, we use the 4% 909 01:01:07,614 --> 01:01:08,281 approach annual approach for 910 01:01:08,281 --> 01:01:08,848 city Jeanie retail rates We 911 01:01:08,848 --> 01:01:11,248 believe that that was 912 01:01:11,651 --> 01:01:12,152 reasonable based on recent rate 913 01:01:12,152 --> 01:01:12,819 case information. 914 01:01:12,819 --> 01:01:15,219 Historically that number is 915 01:01:15,855 --> 01:01:16,556 probably closer to about 6% as 916 01:01:16,556 --> 01:01:16,856 you can see in this analysis 917 01:01:16,856 --> 01:01:18,856 here. 918 01:01:21,461 --> 01:01:22,229 What we're trying to show in 919 01:01:22,229 --> 01:01:25,732 this analysis I should say is 920 01:01:25,732 --> 01:01:26,366 that at 3% at the lower end of 921 01:01:26,366 --> 01:01:29,366 the range of growth rates, 922 01:01:29,936 --> 01:01:30,803 the savings is significantly 923 01:01:30,803 --> 01:01:34,403 less at 6% that that range goes 924 01:01:36,900 --> 01:01:36,576 up to significant and 925 01:01:36,576 --> 01:01:37,310 significant savings, a 926 01:01:37,310 --> 01:01:37,744 difference of about $60 billion 927 01:01:37,744 --> 01:01:39,744 between those. 928 01:01:41,348 --> 01:01:42,490 Now this is based on the ocr 929 01:01:42,490 --> 01:01:45,490 acquisition cost case but you 930 01:01:46,186 --> 01:01:46,787 can see the sensitivity to 931 01:01:46,787 --> 01:01:47,387 the results relative to 932 01:01:47,387 --> 01:01:49,787 the assumption made for 933 01:01:50,424 --> 01:01:51,224 the genie rates. 934 01:01:51,224 --> 01:01:54,224 There are certainly several key 935 01:01:55,629 --> 01:01:56,163 assumptions moving forward that 936 01:01:56,163 --> 01:01:56,563 would impact future 937 01:01:56,563 --> 01:01:57,197 feasibility. 938 01:01:57,197 --> 01:01:59,197 Certainly policy direction 939 01:02:00,901 --> 01:02:01,635 around climate change, consumer 940 01:02:01,635 --> 01:02:02,336 preference, electrification and 941 01:02:02,336 --> 01:02:05,336 the like relative to projected 942 01:02:06,372 --> 01:02:06,974 low growth How it will impact 943 01:02:06,974 --> 01:02:08,974 this analysis certainly 944 01:02:10,911 --> 01:02:11,545 direction at the state level 945 01:02:11,545 --> 01:02:13,545 looking at affordability, 946 01:02:15,983 --> 01:02:16,683 looking at reliability in terms 947 01:02:16,683 --> 01:02:17,351 of investment requirements for 948 01:02:17,351 --> 01:02:20,351 systems such as energy needs 949 01:02:20,687 --> 01:02:21,255 and the sensitivity to retail 950 01:02:21,255 --> 01:02:23,655 rates is an important 951 01:02:25,626 --> 01:02:26,226 consideration as well. 952 01:02:26,226 --> 01:02:26,860 Looking out over what's 953 01:02:26,860 --> 01:02:29,860 happening at the state at 954 01:02:30,197 --> 01:02:30,731 the cpi you see relative to San 955 01:02:30,731 --> 01:02:31,431 Francisco felt that 956 01:02:31,431 --> 01:02:34,431 the precedents there in terms 957 01:02:34,635 --> 01:02:35,336 of that court decision, 958 01:02:35,336 --> 01:02:36,360 the preliminary court decision 959 01:02:36,360 --> 01:02:38,436 looking at legislation, Senate 960 01:02:40,400 --> 01:02:40,708 bill 875 looking at municipal 961 01:02:40,708 --> 01:02:42,708 ization efforts across 962 01:02:44,678 --> 01:02:45,346 the state as well as at the cpi 963 01:02:45,346 --> 01:02:47,746 you see regarding wildfire 964 01:02:49,116 --> 01:02:52,116 investments and the past in 965 01:02:53,387 --> 01:02:53,787 the future is a major unknown 966 01:02:53,787 --> 01:02:55,787 conclusion. 967 01:02:58,250 --> 01:02:58,692 >> The Phase two analysis is 968 01:02:58,692 --> 01:02:59,259 conducted has significantly 969 01:02:59,259 --> 01:03:01,259 refined the financial 970 01:03:02,830 --> 01:03:03,597 projections. 971 01:03:03,597 --> 01:03:04,231 We have a lot more detailed 972 01:03:04,231 --> 01:03:04,798 data relative to the asset 973 01:03:04,798 --> 01:03:06,798 inventory relative to 974 01:03:07,334 --> 01:03:08,200 the estimated costs. 975 01:03:08,200 --> 01:03:08,736 The certainly the age of 976 01:03:08,736 --> 01:03:11,736 the assets are materially older 977 01:03:24,330 --> 01:03:25,445 than originally assumed 978 01:03:25,445 --> 01:03:25,747 creating a different difference 979 01:03:25,747 --> 01:03:26,640 disparity between the ocr and 980 01:03:26,640 --> 01:03:26,360 replacement costs new less 981 01:03:26,360 --> 01:03:26,564 depreciation values. 982 01:03:26,564 --> 01:03:26,766 The Phase two does find 983 01:03:26,766 --> 01:03:26,931 financial and technical 984 01:03:26,931 --> 01:03:27,254 feasibility and the opportunity 985 01:03:27,254 --> 01:03:27,888 to save dollars for the rate 986 01:03:27,888 --> 01:03:30,888 over time for rate payers. 987 01:03:32,326 --> 01:03:32,993 But the biggest drivers I 988 01:03:32,993 --> 01:03:33,661 mentioned is the assumption 989 01:03:33,661 --> 01:03:36,397 around sd g long term growth 990 01:03:36,397 --> 01:03:37,310 rates and of course 991 01:03:37,310 --> 01:03:37,665 the potential savings and 992 01:03:37,665 --> 01:03:38,365 financial benefits are an 993 01:03:38,365 --> 01:03:41,365 estimate At this point there's 994 01:03:41,505 --> 01:03:42,236 no guarantees that these that 995 01:03:42,236 --> 01:03:45,236 these savings would would would 996 01:03:45,973 --> 01:03:46,674 come to fruition. 997 01:03:46,674 --> 01:03:49,740 The legislative and regulatory 998 01:03:50,311 --> 01:03:50,745 environment is indeed evolving 999 01:03:50,745 --> 01:03:51,412 and fluid. 1000 01:03:51,412 --> 01:03:52,790 There are certainly costs 1001 01:03:52,790 --> 01:03:54,479 issues around costs recovery 1002 01:03:54,915 --> 01:03:55,516 cost reimbursement valuation 1003 01:03:55,516 --> 01:03:56,183 approaches as well as 1004 01:03:56,183 --> 01:03:59,183 the potential process all of 1005 01:03:59,920 --> 01:04:00,554 which could impact 1006 01:04:00,554 --> 01:04:01,222 the financial feasibility. 1007 01:04:01,222 --> 01:04:03,622 However, overall the results 1008 01:04:05,526 --> 01:04:06,127 are more refined and more more 1009 01:04:06,127 --> 01:04:08,127 defined than significant 1010 01:04:09,931 --> 01:04:10,698 unknowns and variables remain. 1011 01:04:10,698 --> 01:04:11,132 That's the conclusion of our 1012 01:04:11,132 --> 01:04:11,866 presentation. 1013 01:04:11,866 --> 01:04:14,635 I'd be happy to answer any 1014 01:04:14,635 --> 01:04:15,102 questions. 1015 01:04:15,102 --> 01:04:15,836 >> All right. 1016 01:04:15,836 --> 01:04:18,836 Thank you for the presentation. 1017 01:04:20,410 --> 01:04:20,641 The fire marshal has asked for 1018 01:04:20,641 --> 01:04:21,308 Those that are standing 1019 01:04:21,308 --> 01:04:21,776 the back are actually empty 1020 01:04:21,776 --> 01:04:23,776 seats out there. 1021 01:04:24,450 --> 01:04:24,712 So if you could take a seat 1022 01:04:24,712 --> 01:04:25,513 with make the fire marshal 1023 01:04:25,513 --> 01:04:28,649 happy which makes me feel more 1024 01:04:28,649 --> 01:04:29,117 comfortable. 1025 01:04:29,117 --> 01:04:31,117 So thank you. 1026 01:04:33,187 --> 01:04:33,688 So think again for 1027 01:04:33,688 --> 01:04:34,655 the presentation. 1028 01:04:34,655 --> 01:04:38,255 With that let's go to public 1029 01:04:38,326 --> 01:04:38,993 comment. 1030 01:04:38,993 --> 01:04:41,993 Thank you counsel Thank you. 1031 01:04:42,129 --> 01:04:42,830 Council PRESIDENT This item 1032 01:04:42,830 --> 01:04:43,531 received 15 comments in favor 1033 01:04:43,531 --> 01:04:46,531 and two comments in opposition 1034 01:04:46,901 --> 01:04:47,502 via our e comment form which 1035 01:04:47,502 --> 01:04:47,902 has been distributed to 1036 01:04:47,902 --> 01:04:49,337 the Council. 1037 01:04:49,337 --> 01:04:52,337 We will begin with in-person 1038 01:04:54,709 --> 01:04:55,410 public comment. 1039 01:04:55,410 --> 01:04:57,810 Anthony Stackhouse Please come 1040 01:05:00,140 --> 01:05:03,140 forward and and each speaker 1041 01:05:03,618 --> 01:05:06,618 will receive one minute after 1042 01:05:08,122 --> 01:05:08,756 Anthony Kevin Carroll, Matthew 1043 01:05:08,756 --> 01:05:10,580 Fish and Christina marquez 1044 01:05:10,580 --> 01:05:13,658 Please come sit in the front 1045 01:05:14,328 --> 01:05:16,328 row. 1046 01:05:19,500 --> 01:05:20,235 >> Please begin. 1047 01:05:20,235 --> 01:05:20,935 My name is Anthony Stackhouse. 1048 01:05:20,935 --> 01:05:24,535 I serve on the executive board 1049 01:05:24,639 --> 01:05:25,473 for ibew for 65. 1050 01:05:25,473 --> 01:05:29,730 I spent 14 years in the Army 1051 01:05:29,544 --> 01:05:30,444 with combat deployments 1052 01:05:30,444 --> 01:05:31,112 overseas and if you knew the I 1053 01:05:31,112 --> 01:05:34,349 went through to get to where 1054 01:05:34,349 --> 01:05:35,116 I'm at today you would not be 1055 01:05:35,116 --> 01:05:35,984 so steadfast to put my job and 1056 01:05:35,984 --> 01:05:38,920 my family's quality of life at 1057 01:05:38,920 --> 01:05:39,687 risk. 1058 01:05:39,687 --> 01:05:40,589 The people in this city don't 1059 01:05:40,589 --> 01:05:44,580 trust you Don't give them more 1060 01:05:44,580 --> 01:05:44,826 reasons. 1061 01:05:44,826 --> 01:05:45,527 Be honest with themselves. 1062 01:05:45,527 --> 01:05:49,127 You do not have the resources 1063 01:05:49,130 --> 01:05:49,898 or knowledge to do this. 1064 01:05:49,898 --> 01:05:50,565 Don't gamble with my job or 1065 01:05:50,565 --> 01:05:53,901 the job of my union brothers 1066 01:05:53,901 --> 01:05:54,669 and sisters because I promise 1067 01:05:54,669 --> 01:05:55,236 you one thing we will not go 1068 01:05:55,236 --> 01:05:57,636 down without a fight. 1069 01:05:58,573 --> 01:05:59,207 I urge this Cancel this council 1070 01:05:59,207 --> 01:06:02,207 to end this now Municipal 1071 01:06:06,514 --> 01:06:07,215 association is union busting. 1072 01:06:07,215 --> 01:06:10,215 Thank you for those comments. 1073 01:06:16,291 --> 01:06:16,925 Kevin Carroll Good afternoon 1074 01:06:16,925 --> 01:06:17,559 Council members My name is 1075 01:06:17,559 --> 01:06:18,193 Kevin Caroline, executive 1076 01:06:18,193 --> 01:06:21,193 Director of Tech San Diego 1077 01:06:21,196 --> 01:06:21,863 representing technology 1078 01:06:21,863 --> 01:06:22,597 companies across our region. 1079 01:06:22,597 --> 01:06:25,597 Our members care about reliable 1080 01:06:26,234 --> 01:06:26,902 service competitive rate and 1081 01:06:26,902 --> 01:06:27,435 the infrastructure needed to 1082 01:06:27,435 --> 01:06:28,690 support innovation, 1083 01:06:28,690 --> 01:06:30,690 manufacturing and economic 1084 01:06:30,972 --> 01:06:31,673 growth. 1085 01:06:31,673 --> 01:06:32,206 Based on this presentation we 1086 01:06:32,206 --> 01:06:32,875 have some concerns. 1087 01:06:32,875 --> 01:06:35,577 The question is not whether 1088 01:06:35,577 --> 01:06:36,178 minutes position is possible. 1089 01:06:36,178 --> 01:06:36,711 The question is whether 1090 01:06:36,711 --> 01:06:39,111 the risk caused are 1091 01:06:40,515 --> 01:06:41,183 sufficiently understood before 1092 01:06:41,183 --> 01:06:41,817 making a multibillion dollar 1093 01:06:41,817 --> 01:06:42,484 decision that could impact 1094 01:06:42,484 --> 01:06:44,884 businesses and residents for 1095 01:06:45,353 --> 01:06:46,880 decades before moving forward. 1096 01:06:46,880 --> 01:06:46,788 The city should have a high 1097 01:06:46,788 --> 01:06:49,788 degree of confidence that all 1098 01:06:50,559 --> 01:06:51,226 major cost liabilities, 1099 01:06:51,226 --> 01:06:51,865 regulatory requirements and 1100 01:06:51,865 --> 01:06:53,865 operational challenges are 1101 01:06:55,430 --> 01:06:55,897 fully understood and reflected 1102 01:06:55,897 --> 01:06:56,531 in the analysis. 1103 01:06:56,531 --> 01:06:58,531 If manipulation ultimately 1104 01:06:59,668 --> 01:07:00,268 proves to be the best path, 1105 01:07:00,268 --> 01:07:00,969 the business case could 1106 01:07:00,969 --> 01:07:01,604 withstand rigorous scrutiny if 1107 01:07:01,604 --> 01:07:03,604 significant uncertainties 1108 01:07:04,940 --> 01:07:05,540 remain as I think we saw in 1109 01:07:05,540 --> 01:07:06,208 the presentation, those 1110 01:07:06,208 --> 01:07:08,608 questions should be resolved 1111 01:07:09,177 --> 01:07:09,878 before ratepayers and 1112 01:07:09,878 --> 01:07:10,612 businesses assume the risk for 1113 01:07:10,612 --> 01:07:13,120 San Diego's innovation economy. 1114 01:07:14,216 --> 01:07:14,950 The goal is a reliable, 1115 01:07:14,950 --> 01:07:15,617 resilient and affordable energy 1116 01:07:15,617 --> 01:07:15,884 energy system that supports 1117 01:07:15,884 --> 01:07:16,251 job. 1118 01:07:16,251 --> 01:07:17,520 Thank you. 1119 01:07:17,520 --> 01:07:19,888 Thank you for your comment and 1120 01:07:19,888 --> 01:07:22,888 that does conclude your time. 1121 01:07:25,427 --> 01:07:25,894 Matthew Fish Good afternoon 1122 01:07:25,894 --> 01:07:27,894 Council members. 1123 01:07:29,965 --> 01:07:30,666 My name is Matthew Fish and I'm 1124 01:07:30,666 --> 01:07:31,133 the system business manager at 1125 01:07:31,133 --> 01:07:33,133 ibew Local 465. 1126 01:07:34,937 --> 01:07:35,604 I represent the workers 1127 01:07:35,604 --> 01:07:37,604 industry Jeannie speaking 1128 01:07:38,640 --> 01:07:39,241 against the Phase two study 1129 01:07:39,241 --> 01:07:39,942 because it offers no job 1130 01:07:39,942 --> 01:07:42,342 protections for my 700 gas 1131 01:07:43,245 --> 01:07:43,912 construction work members 1132 01:07:43,912 --> 01:07:44,579 workers will lose their jobs 1133 01:07:44,579 --> 01:07:47,579 and the retiree medical and 1134 01:07:48,684 --> 01:07:49,651 pensions will be affected. 1135 01:07:49,651 --> 01:07:52,654 Please in this once and for all 1136 01:07:52,654 --> 01:07:53,288 please invest the $9 million 1137 01:07:53,288 --> 01:07:53,922 Billion elsewhere such as 1138 01:07:53,922 --> 01:07:55,922 infrastructure backlog or 1139 01:07:57,860 --> 01:07:58,727 housing for the homeless. 1140 01:07:58,727 --> 01:08:01,463 Please do not gamble with our 1141 01:08:01,463 --> 01:08:05,663 union jobs and if the city has 1142 01:08:06,468 --> 01:08:08,868 bigger priorities like thank 1143 01:08:11,740 --> 01:08:12,441 you and Christina marquez and 1144 01:08:12,441 --> 01:08:13,108 while Christina speak incurred 1145 01:08:13,108 --> 01:08:15,508 Mark Fuentes, Krystal Gomez, 1146 01:08:16,545 --> 01:08:17,150 Monica Valdez and Cecilia 1147 01:08:17,150 --> 01:08:19,150 marquez please approach 1148 01:08:20,883 --> 01:08:21,417 the front row. 1149 01:08:21,417 --> 01:08:22,117 Hi good afternoon. 1150 01:08:22,117 --> 01:08:24,517 Christina marquez speaking on 1151 01:08:26,222 --> 01:08:26,956 behalf of ibew Local 569 San 1152 01:08:26,956 --> 01:08:29,956 Diego and Imperial County where 1153 01:08:30,593 --> 01:08:31,293 the inside wireman We're here 1154 01:08:31,293 --> 01:08:34,196 in solidarity with our union 1155 01:08:34,196 --> 01:08:36,596 sisters and brothers of 465. 1156 01:08:38,934 --> 01:08:39,702 The ibew stands against any 1157 01:08:39,702 --> 01:08:41,702 effort to municipalities 1158 01:08:43,572 --> 01:08:44,306 the power company the Nugent 1159 01:08:44,306 --> 01:08:47,306 study says nothing about worker 1160 01:08:48,544 --> 01:08:49,211 protections or job guarantee 1161 01:08:49,211 --> 01:08:51,611 Leaving our ibew five 569 1162 01:08:53,549 --> 01:08:56,549 members in limbo ibew members 1163 01:08:58,387 --> 01:08:58,988 could lose jobs and benefits 1164 01:08:58,988 --> 01:08:59,488 and the city is already 1165 01:08:59,488 --> 01:09:01,488 billions behind in 1166 01:09:03,326 --> 01:09:03,993 infrastructure spending 1167 01:09:03,993 --> 01:09:04,593 infrastructure spending That 1168 01:09:04,593 --> 01:09:06,993 puts our building trades 1169 01:09:08,197 --> 01:09:09,650 members to work. 1170 01:09:09,650 --> 01:09:12,665 >> Please do not wage or gamble 1171 01:09:13,502 --> 01:09:13,903 with our jobs and our 1172 01:09:13,903 --> 01:09:14,604 livelihood. 1173 01:09:14,604 --> 01:09:14,937 Please end these efforts once 1174 01:09:14,937 --> 01:09:16,937 for all. 1175 01:09:17,607 --> 01:09:18,700 Thank you. 1176 01:09:18,700 --> 01:09:20,700 Thank you. 1177 01:09:23,145 --> 01:09:26,145 Mark wants Yeah Good afternoon. 1178 01:09:28,651 --> 01:09:29,418 Council members. 1179 01:09:29,418 --> 01:09:30,152 My name is Mark Fuentes. 1180 01:09:30,152 --> 01:09:30,519 I'm a gas working foreman for 1181 01:09:30,519 --> 01:09:32,519 our city. 1182 01:09:32,555 --> 01:09:36,155 Jeannie a shop steward Would I 1183 01:09:36,992 --> 01:09:37,760 be w Local 465 a proud U.S. 1184 01:09:37,760 --> 01:09:38,940 Army veteran and a San Diego 1185 01:09:38,940 --> 01:09:38,928 native. 1186 01:09:38,928 --> 01:09:42,331 I served this country because I 1187 01:09:42,331 --> 01:09:43,320 believe in protecting American 1188 01:09:43,320 --> 01:09:43,432 families, American workers and 1189 01:09:43,432 --> 01:09:45,432 communities. 1190 01:09:47,671 --> 01:09:48,270 But when I look at this 1191 01:09:48,270 --> 01:09:48,838 proposal I don't see any 1192 01:09:48,838 --> 01:09:51,238 protections for me, my 1193 01:09:51,574 --> 01:09:52,442 coworkers or our families. 1194 01:09:52,442 --> 01:09:53,209 I don't see a future for my 1195 01:09:53,209 --> 01:09:56,209 skilled gas workers who have 1196 01:09:56,946 --> 01:09:57,580 dedicated their entire careers 1197 01:09:57,580 --> 01:09:59,980 to serving this community. 1198 01:10:01,840 --> 01:10:01,818 I also don't see protection for 1199 01:10:01,818 --> 01:10:02,552 our communities especially when 1200 01:10:02,552 --> 01:10:06,550 the cost of living is at an all 1201 01:10:06,550 --> 01:10:06,723 time high. 1202 01:10:06,723 --> 01:10:07,323 This proposal will create 1203 01:10:07,323 --> 01:10:09,323 additional expenses for 1204 01:10:10,726 --> 01:10:11,460 citizens and taxpayers who are 1205 01:10:11,460 --> 01:10:11,761 already struggling to make ends 1206 01:10:11,761 --> 01:10:12,461 meet. 1207 01:10:12,461 --> 01:10:15,431 Please don't gamble with good 1208 01:10:15,431 --> 01:10:15,832 union jobs without clear worker 1209 01:10:15,832 --> 01:10:16,532 protections. 1210 01:10:16,532 --> 01:10:17,330 I urge you not to move forward 1211 01:10:17,330 --> 01:10:19,330 with this effort. 1212 01:10:24,874 --> 01:10:25,542 Thank you Cristo Gomez. 1213 01:10:25,542 --> 01:10:25,875 >> Good afternoon, Council 1214 01:10:25,875 --> 01:10:27,875 members. 1215 01:10:30,380 --> 01:10:31,246 My name is Cristo Gomez. 1216 01:10:31,246 --> 01:10:31,948 I am shop steward of ibew 465 1217 01:10:31,948 --> 01:10:34,348 and equipment operator c 1218 01:10:35,351 --> 01:10:36,850 Jeannie I'm also a veteran of 1219 01:10:36,850 --> 01:10:36,819 the United States Marine Corps. 1220 01:10:36,819 --> 01:10:40,190 I operate equipment for gas and 1221 01:10:40,190 --> 01:10:40,924 electric emergency And this 1222 01:10:40,924 --> 01:10:41,491 feasibility study you only want 1223 01:10:41,491 --> 01:10:43,891 to take over electric. 1224 01:10:45,610 --> 01:10:45,828 What about gas jobs? 1225 01:10:45,828 --> 01:10:48,228 What about equipment operators 1226 01:10:49,499 --> 01:10:50,100 like myself and their families 1227 01:10:50,100 --> 01:10:53,100 when we lose our jobs? 1228 01:10:54,337 --> 01:10:55,171 What about our retirements? 1229 01:10:55,171 --> 01:10:55,609 There are over 700 gas workers 1230 01:10:55,609 --> 01:10:57,609 in our union. 1231 01:10:58,975 --> 01:10:59,742 What about them? 1232 01:10:59,742 --> 01:11:02,742 Where's our just transition And 1233 01:11:04,800 --> 01:11:04,748 what about job mobility? 1234 01:11:04,748 --> 01:11:05,615 Because in this proposal I 1235 01:11:05,615 --> 01:11:09,485 don't see a future for us in 1236 01:11:09,485 --> 01:11:10,186 our jobs Don't gamble with good 1237 01:11:10,186 --> 01:11:13,490 union jobs And I see Jeannie 1238 01:11:13,490 --> 01:11:14,224 with the city takeover I urge 1239 01:11:14,224 --> 01:11:14,892 the City Council not to proceed 1240 01:11:14,892 --> 01:11:17,892 any further with this effort 1241 01:11:18,194 --> 01:11:18,862 forcing the city to take on 1242 01:11:18,862 --> 01:11:19,562 billions in debt is wrong. 1243 01:11:19,562 --> 01:11:21,631 We have bigger priorities. 1244 01:11:21,631 --> 01:11:22,980 Thank you. 1245 01:11:22,980 --> 01:11:24,980 Thank you. 1246 01:11:32,142 --> 01:11:32,609 Monica Valdez Hello my name is 1247 01:11:32,609 --> 01:11:33,310 Monica Relative. 1248 01:11:33,310 --> 01:11:36,310 >> I'm a third generation ibew 1249 01:11:36,513 --> 01:11:37,414 member and emergency dispatcher 1250 01:11:37,414 --> 01:11:40,490 for sd Jeannie I'm a proud 1251 01:11:40,490 --> 01:11:42,449 resident of District four. 1252 01:11:45,550 --> 01:11:45,822 >> I am a very active and very 1253 01:11:45,822 --> 01:11:46,456 active in my union and my 1254 01:11:46,456 --> 01:11:47,230 community as part of local 1255 01:11:47,230 --> 01:11:49,230 social service clubs. 1256 01:11:49,726 --> 01:11:50,427 I'm here to express my absolute 1257 01:11:50,427 --> 01:11:53,427 opposition to the Phase two 1258 01:11:54,297 --> 01:11:55,650 study The proposal is costly, 1259 01:11:55,650 --> 01:11:58,665 will gamble what puts our union 1260 01:11:59,690 --> 01:11:59,769 contracts in the crosshairs? 1261 01:11:59,769 --> 01:12:02,769 There are zero protections and 1262 01:12:03,407 --> 01:12:03,740 zero guarantees for my members 1263 01:12:03,740 --> 01:12:04,307 . 1264 01:12:04,307 --> 01:12:04,908 There was zero current 1265 01:12:04,908 --> 01:12:05,241 consideration for my gas 1266 01:12:05,241 --> 01:12:07,241 members. 1267 01:12:08,911 --> 01:12:09,513 Our gas people They are left 1268 01:12:09,513 --> 01:12:11,913 behind in this proposal. 1269 01:12:12,716 --> 01:12:13,417 Where is the just the just 1270 01:12:13,417 --> 01:12:13,950 transition Please vote against 1271 01:12:13,950 --> 01:12:14,618 this risky measure. 1272 01:12:14,618 --> 01:12:17,120 Please don't gamble with our 1273 01:12:17,120 --> 01:12:17,988 livelihoods. 1274 01:12:17,988 --> 01:12:20,988 >> Please stop this once and 1275 01:12:22,225 --> 01:12:22,625 for all. 1276 01:12:22,625 --> 01:12:24,625 Thank you. 1277 01:12:27,798 --> 01:12:28,498 Cecilia marquez Well Cecilia 1278 01:12:28,498 --> 01:12:28,899 comes to the microphone could 1279 01:12:28,899 --> 01:12:30,899 Laurie Lips? 1280 01:12:32,769 --> 01:12:33,637 Lipson Noelia Carolyn Jason 1281 01:12:33,637 --> 01:12:36,637 Poggio, Chris Kate and Amy 1282 01:12:37,400 --> 01:12:37,474 Fossett please come to 1283 01:12:37,474 --> 01:12:37,941 the front row. 1284 01:12:37,941 --> 01:12:39,941 >> Please begin. 1285 01:12:41,878 --> 01:12:42,613 Thank you. 1286 01:12:42,613 --> 01:12:43,513 My name is Cecilia marquez. 1287 01:12:43,513 --> 01:12:46,249 I'm born and raised in San 1288 01:12:46,249 --> 01:12:47,170 Diego. 1289 01:12:47,170 --> 01:12:47,618 I'm a single mother, a 1290 01:12:47,618 --> 01:12:48,485 homeowner and a 24 year 1291 01:12:48,485 --> 01:12:50,487 employee at San Diego Gas and 1292 01:12:50,487 --> 01:12:51,254 Electric. 1293 01:12:51,254 --> 01:12:54,854 I'm also a proud union officer 1294 01:12:55,125 --> 01:12:55,459 and organizer at ibew Local 1295 01:12:55,459 --> 01:12:56,193 465. 1296 01:12:56,193 --> 01:12:56,994 The city has been studying this 1297 01:12:56,994 --> 01:13:00,497 for decades and it's time to 1298 01:13:00,497 --> 01:13:01,365 stop. 1299 01:13:01,365 --> 01:13:02,320 San Diego is a beautiful city 1300 01:13:02,320 --> 01:13:04,701 but when I look around I see 1301 01:13:04,701 --> 01:13:05,369 bigger priorities that we 1302 01:13:05,369 --> 01:13:06,360 should be focusing on 1303 01:13:06,360 --> 01:13:08,360 the homelessness, affordable 1304 01:13:09,974 --> 01:13:10,674 housing, fixing our storm 1305 01:13:10,674 --> 01:13:12,674 drains, infrastructure, public 1306 01:13:14,511 --> 01:13:15,212 transit And in this study 1307 01:13:15,212 --> 01:13:16,130 there's no guarantee that our 1308 01:13:16,130 --> 01:13:16,413 jobs will carry over to a city 1309 01:13:16,413 --> 01:13:18,413 ran utility. 1310 01:13:19,883 --> 01:13:20,551 And even if they do, wages, 1311 01:13:20,551 --> 01:13:21,850 salaries and benefits could 1312 01:13:21,850 --> 01:13:23,850 change considerably. 1313 01:13:24,689 --> 01:13:25,356 So I urge the city council to 1314 01:13:25,356 --> 01:13:25,756 not proceed any further with 1315 01:13:25,756 --> 01:13:27,756 this effort. 1316 01:13:29,590 --> 01:13:29,393 Let's stop wasting our tax 1317 01:13:29,393 --> 01:13:30,930 dollars. 1318 01:13:30,930 --> 01:13:30,694 This is wrong and the city has 1319 01:13:30,694 --> 01:13:32,694 much bigger priorities. 1320 01:13:34,231 --> 01:13:34,665 Municipal association It is 1321 01:13:34,665 --> 01:13:35,990 union busting. 1322 01:13:35,990 --> 01:13:36,267 >> Thank you. 1323 01:13:36,267 --> 01:13:38,267 Thank you. 1324 01:13:41,438 --> 01:13:43,838 Laurie Lipman Hello Council 1325 01:13:46,610 --> 01:13:47,211 members. 1326 01:13:47,211 --> 01:13:47,912 I'm Laurie Litzman, a 1327 01:13:47,912 --> 01:13:50,312 constituent of District three 1328 01:13:50,714 --> 01:13:51,282 sd Jean e continues to put 1329 01:13:51,282 --> 01:13:53,282 profits before people. 1330 01:13:54,985 --> 01:13:55,653 For decades we've been we've 1331 01:13:55,653 --> 01:13:58,653 built an energy system that 1332 01:13:59,923 --> 01:14:00,624 transports power long distances 1333 01:14:00,624 --> 01:14:01,258 ,losing power along the way 1334 01:14:01,258 --> 01:14:01,692 while increasing costs and 1335 01:14:01,692 --> 01:14:03,692 vulnerability. 1336 01:14:05,290 --> 01:14:05,696 The Sunrise Powerlink destroyed 1337 01:14:05,696 --> 01:14:08,960 habitat impact and cultural 1338 01:14:10,340 --> 01:14:10,835 significance in significant 1339 01:14:10,835 --> 01:14:13,835 lands and disrupt its disrupted 1340 01:14:14,705 --> 01:14:15,306 communities. 1341 01:14:15,306 --> 01:14:16,600 Today those transmission 1342 01:14:16,600 --> 01:14:19,110 corridors are part of a system 1343 01:14:19,110 --> 01:14:19,710 that routinely shuts down power 1344 01:14:19,710 --> 01:14:22,110 to reduce wildfire risk. 1345 01:14:23,848 --> 01:14:24,782 This is not smart energy. 1346 01:14:24,782 --> 01:14:28,382 Sd g e customers pay among 1347 01:14:28,786 --> 01:14:29,453 the highest rates in California 1348 01:14:29,453 --> 01:14:31,853 while utility executives and 1349 01:14:33,624 --> 01:14:34,292 shareholders continue to profit 1350 01:14:34,292 --> 01:14:34,892 ,many residents are being 1351 01:14:34,892 --> 01:14:35,493 forced to choose between 1352 01:14:35,493 --> 01:14:37,493 necessities and keeping 1353 01:14:38,229 --> 01:14:38,963 the lights on. 1354 01:14:38,963 --> 01:14:39,297 Energy is an essential public 1355 01:14:39,297 --> 01:14:41,297 service. 1356 01:14:43,834 --> 01:14:44,435 It should be accountable to 1357 01:14:44,435 --> 01:14:44,769 the people not corporate 1358 01:14:44,769 --> 01:14:45,436 profit. 1359 01:14:45,436 --> 01:14:45,803 Basically that does conclude 1360 01:14:45,803 --> 01:14:47,803 your time. 1361 01:14:47,939 --> 01:14:49,939 Thank you. 1362 01:14:57,615 --> 01:14:57,982 Next speaker Noelia Collin Good 1363 01:14:57,982 --> 01:14:58,716 afternoon. 1364 01:14:58,716 --> 01:14:59,830 My name is Noelia Colon and I'm 1365 01:14:59,830 --> 01:15:01,830 a welder. 1366 01:15:02,286 --> 01:15:02,987 Jeannie I'm four and a proud 1367 01:15:02,987 --> 01:15:06,190 member of ibew for six five. 1368 01:15:06,190 --> 01:15:06,891 I'm proud to be the first woman 1369 01:15:06,891 --> 01:15:07,392 welder in our union's history 1370 01:15:07,392 --> 01:15:09,392 of over 100 years. 1371 01:15:10,361 --> 01:15:11,950 This career has changed My life 1372 01:15:11,950 --> 01:15:11,762 gave me opportunities financial 1373 01:15:11,762 --> 01:15:14,762 independence and a future I 1374 01:15:14,966 --> 01:15:15,666 never imagined for myself. 1375 01:15:15,666 --> 01:15:16,367 I understand that people are 1376 01:15:16,367 --> 01:15:18,767 frustrated with utility costs. 1377 01:15:20,271 --> 01:15:20,871 Those concerns are valid and do 1378 01:15:20,871 --> 01:15:21,239 deserve to be heard and 1379 01:15:21,239 --> 01:15:21,906 discussed. 1380 01:15:21,906 --> 01:15:24,375 We pay those too and we live 1381 01:15:24,375 --> 01:15:25,209 here as well. 1382 01:15:25,209 --> 01:15:25,877 But when I read the study I 1383 01:15:25,877 --> 01:15:26,577 didn't see enough discussion 1384 01:15:26,577 --> 01:15:29,247 about the workers who operate 1385 01:15:29,247 --> 01:15:29,981 maintain and respond to 1386 01:15:29,981 --> 01:15:30,248 emergencies on the system every 1387 01:15:30,248 --> 01:15:30,915 day. 1388 01:15:30,915 --> 01:15:34,319 I didn't see myself I didn't 1389 01:15:34,319 --> 01:15:34,652 see my union brothers and 1390 01:15:34,652 --> 01:15:35,320 sisters. 1391 01:15:35,320 --> 01:15:36,540 I didn't see the young women 1392 01:15:36,540 --> 01:15:36,754 who MAY 1st day follow the path 1393 01:15:36,754 --> 01:15:39,490 that I did part that I did. 1394 01:15:39,490 --> 01:15:40,158 I ask that you consider not 1395 01:15:40,158 --> 01:15:40,692 only the infrastructure but 1396 01:15:40,692 --> 01:15:41,359 the people behind it 1397 01:15:41,359 --> 01:15:43,759 the workforce, the training, 1398 01:15:44,529 --> 01:15:45,230 the experience, the careers, 1399 01:15:45,230 --> 01:15:45,930 the culture, all the hustlers 1400 01:15:45,930 --> 01:15:46,331 that serve that community for 1401 01:15:46,331 --> 01:15:48,331 generations. 1402 01:15:49,267 --> 01:15:49,634 I was born and raised here in 1403 01:15:49,634 --> 01:15:50,268 San Diego. 1404 01:15:50,268 --> 01:15:53,271 I love the city and that's 1405 01:15:53,271 --> 01:15:53,838 exactly why I'm asking you to 1406 01:15:53,838 --> 01:15:54,439 think carefully about 1407 01:15:54,439 --> 01:15:55,106 the people who serve and 1408 01:15:55,106 --> 01:15:57,410 sacrifice for it every day. 1409 01:15:57,410 --> 01:15:59,410 >> Thank you. 1410 01:16:02,413 --> 01:16:02,728 >> Jason Paglia, Jason Paglia. 1411 01:16:02,728 --> 01:16:04,728 Okay. 1412 01:16:10,488 --> 01:16:10,855 Moving on Chris Kate Good 1413 01:16:10,855 --> 01:16:11,523 afternoon. 1414 01:16:11,523 --> 01:16:12,157 Council PRESIDENT Members of 1415 01:16:12,157 --> 01:16:15,157 the council Chris Kate on 1416 01:16:15,760 --> 01:16:16,461 behalf of the San Diego 1417 01:16:16,461 --> 01:16:17,127 Regional Chamber of Commerce. 1418 01:16:17,127 --> 01:16:20,532 The Phase two study claims I 1419 01:16:20,532 --> 01:16:21,232 mean just what utility would 1420 01:16:21,232 --> 01:16:22,000 save San Diegans $130 billion? 1421 01:16:22,000 --> 01:16:25,000 Let's be direct When something 1422 01:16:25,570 --> 01:16:26,304 sounds too good to be true, it 1423 01:16:26,304 --> 01:16:29,674 usually is giving false hope to 1424 01:16:29,674 --> 01:16:30,375 San Diegans at a time when 1425 01:16:30,375 --> 01:16:31,760 affordability is top of mind. 1426 01:16:31,760 --> 01:16:34,760 The reality is that municipal 1427 01:16:34,712 --> 01:16:35,460 ization is a dangerous, costly 1428 01:16:35,460 --> 01:16:35,780 gamble. 1429 01:16:35,780 --> 01:16:36,414 Startup costs alone could reach 1430 01:16:36,414 --> 01:16:39,414 $9 billion a year or more. 1431 01:16:40,151 --> 01:16:40,852 Money the city simply does not 1432 01:16:40,852 --> 01:16:41,386 have nor residents can afford 1433 01:16:41,386 --> 01:16:44,289 to take on as debt. 1434 01:16:44,289 --> 01:16:44,990 This doesn't even account for 1435 01:16:44,990 --> 01:16:45,590 massive annual operating costs 1436 01:16:45,590 --> 01:16:47,590 wildfire insurance cost 1437 01:16:47,959 --> 01:16:48,660 overruns or litigation that 1438 01:16:48,660 --> 01:16:51,600 residents and businesses would 1439 01:16:53,264 --> 01:16:54,320 be forced to bankroll. 1440 01:16:54,320 --> 01:16:54,666 >> Pursuing a takeover of our 1441 01:16:54,666 --> 01:16:55,267 energy infrastructure is a 1442 01:16:55,267 --> 01:16:57,267 costly distraction that 1443 01:16:58,470 --> 01:16:59,204 undermines our economic 1444 01:16:59,204 --> 01:16:59,604 stability and risk our electric 1445 01:16:59,604 --> 01:17:01,604 reliability. 1446 01:17:02,841 --> 01:17:03,542 Past city councils have rightly 1447 01:17:03,542 --> 01:17:04,142 rejected this path time and 1448 01:17:04,142 --> 01:17:04,809 again because the risks 1449 01:17:04,809 --> 01:17:07,809 continue to far outweigh any 1450 01:17:08,460 --> 01:17:08,780 speculative benefits. 1451 01:17:08,780 --> 01:17:09,414 We urge you to reject this 1452 01:17:09,414 --> 01:17:11,750 proposal once and for all. 1453 01:17:11,750 --> 01:17:13,750 Thank you. 1454 01:17:16,921 --> 01:17:17,421 Amy Fossett. 1455 01:17:17,421 --> 01:17:18,123 >> Good afternoon. 1456 01:17:18,123 --> 01:17:21,123 Amy Fossett with the Building 1457 01:17:22,594 --> 01:17:22,894 Industry Association of San 1458 01:17:22,894 --> 01:17:23,562 Diego. 1459 01:17:23,562 --> 01:17:24,262 I'm here today to talk more 1460 01:17:24,262 --> 01:17:27,320 about from my personal and 1461 01:17:27,320 --> 01:17:27,532 professional experience working 1462 01:17:27,532 --> 01:17:28,367 here at the city. 1463 01:17:28,367 --> 01:17:31,303 I was had the honor of working 1464 01:17:31,303 --> 01:17:31,870 here over for over 20 years in 1465 01:17:31,870 --> 01:17:32,270 almost every branch of 1466 01:17:32,270 --> 01:17:34,270 government. 1467 01:17:35,707 --> 01:17:36,408 The city is not structured 1468 01:17:36,408 --> 01:17:36,975 organizationally nor does it 1469 01:17:36,975 --> 01:17:39,375 have the expertise or 1470 01:17:40,450 --> 01:17:40,646 the financial resources to take 1471 01:17:40,646 --> 01:17:41,446 on such an endeavor. 1472 01:17:41,446 --> 01:17:41,747 I too am concerned about energy 1473 01:17:41,747 --> 01:17:43,747 rates. 1474 01:17:45,117 --> 01:17:45,717 But the city of San Diego is 1475 01:17:45,717 --> 01:17:46,510 not the solution to that 1476 01:17:46,510 --> 01:17:48,510 problem. 1477 01:17:49,988 --> 01:17:50,722 So I ask you to please move on 1478 01:17:50,722 --> 01:17:51,423 from this endeavor and focus on 1479 01:17:51,423 --> 01:17:52,157 the priorities and issues that 1480 01:17:52,157 --> 01:17:55,757 you already have on your plate. 1481 01:17:57,529 --> 01:17:58,300 Thank you. 1482 01:17:58,300 --> 01:17:58,697 >> Thank you. 1483 01:17:58,697 --> 01:17:59,310 Our next speaker is Marcy 1484 01:17:59,310 --> 01:18:01,310 Weaver. 1485 01:18:02,301 --> 01:18:03,168 While Marcy approaches 1486 01:18:03,168 --> 01:18:05,568 the microphone, could Mark 1487 01:18:07,720 --> 01:18:09,720 Kersey. 1488 01:18:11,777 --> 01:18:12,477 Gene Wilder, Al Sanchez and 1489 01:18:12,477 --> 01:18:15,477 Matt Kaczynski Please come sit 1490 01:18:16,982 --> 01:18:17,716 in the front row. 1491 01:18:17,716 --> 01:18:18,183 Good afternoon, Council members 1492 01:18:18,183 --> 01:18:20,183 and city staff. 1493 01:18:21,720 --> 01:18:22,354 My name is Marcy Weaver, ceo 1494 01:18:22,354 --> 01:18:22,721 Controller MR. Chamber of 1495 01:18:22,721 --> 01:18:23,388 Commerce. 1496 01:18:23,388 --> 01:18:26,580 I'm here today on behalf of 1497 01:18:26,580 --> 01:18:26,726 the businesses we represent to 1498 01:18:26,726 --> 01:18:27,426 the throughout South County. 1499 01:18:27,426 --> 01:18:29,826 Our business community depends 1500 01:18:31,397 --> 01:18:32,970 on a reliable, affordable and 1501 01:18:32,970 --> 01:18:34,497 predictable energy to operate, 1502 01:18:36,335 --> 01:18:36,669 grow and create jobs in our 1503 01:18:36,669 --> 01:18:37,369 region. 1504 01:18:37,369 --> 01:18:37,870 While we appreciate the effort 1505 01:18:37,870 --> 01:18:40,270 that has gone into 1506 01:18:40,873 --> 01:18:41,573 the feasibility study, we are 1507 01:18:41,573 --> 01:18:42,141 concerned that there is still 1508 01:18:42,141 --> 01:18:44,141 not enough information 1509 01:18:45,578 --> 01:18:46,312 available to fully understand 1510 01:18:46,312 --> 01:18:48,712 financial, operational and long 1511 01:18:50,849 --> 01:18:51,383 term impacts of the municipal 1512 01:18:51,383 --> 01:18:53,383 politician accounts. 1513 01:18:54,920 --> 01:18:55,521 We also want to acknowledge 1514 01:18:55,521 --> 01:18:57,521 the significant wildfire 1515 01:18:59,324 --> 01:19:00,920 mitigation work and ongoing 1516 01:19:00,920 --> 01:19:03,920 investment that sgmd has made 1517 01:19:04,532 --> 01:19:05,497 across the region. 1518 01:19:05,497 --> 01:19:08,601 Chula Vista has had close calls 1519 01:19:08,601 --> 01:19:09,235 with five wildfires. 1520 01:19:09,235 --> 01:19:09,835 And this is critically 1521 01:19:09,835 --> 01:19:10,202 important issue for our 1522 01:19:10,202 --> 01:19:12,202 community. 1523 01:19:14,390 --> 01:19:17,639 We have seen firsthand the work 1524 01:19:18,878 --> 01:19:19,512 that fda has done to straighten 1525 01:19:19,512 --> 01:19:21,912 grid build reliability and 1526 01:19:23,616 --> 01:19:24,216 reduce fire risk being Thank 1527 01:19:24,216 --> 01:19:24,917 you for your comments. 1528 01:19:24,917 --> 01:19:27,917 That does conclude your time. 1529 01:19:28,870 --> 01:19:28,654 Next speaker is Mark Kersey. 1530 01:19:28,654 --> 01:19:30,654 Good afternoon council 1531 01:19:32,525 --> 01:19:33,125 PRESIDENT And members of 1532 01:19:33,125 --> 01:19:33,692 the council Mark Kersey 1533 01:19:33,692 --> 01:19:34,600 representing San Diego 1534 01:19:34,600 --> 01:19:34,726 Taxpayers. 1535 01:19:34,726 --> 01:19:37,830 Having said on your side of 1536 01:19:37,830 --> 01:19:38,597 the dais for eight years I'm 1537 01:19:38,597 --> 01:19:41,934 going to ask you a question Is 1538 01:19:41,934 --> 01:19:42,501 this really a headache that you 1539 01:19:42,501 --> 01:19:43,302 guys want to take on? 1540 01:19:43,302 --> 01:19:44,103 You guys already have a lot of 1541 01:19:44,103 --> 01:19:47,390 headaches and several of them 1542 01:19:47,390 --> 01:19:47,840 concern utilities. 1543 01:19:47,840 --> 01:19:48,507 You get thousands of complaints 1544 01:19:48,507 --> 01:19:50,907 about water rate increases. 1545 01:19:51,944 --> 01:19:52,378 You get browbeat over the cost 1546 01:19:52,378 --> 01:19:53,145 of pure water. 1547 01:19:53,145 --> 01:19:56,145 You get criticized for failed 1548 01:19:56,816 --> 01:19:57,517 stormwater channels and you 1549 01:19:57,517 --> 01:19:59,986 take errors over trash fees 1550 01:19:59,986 --> 01:20:00,686 particularly when third party 1551 01:20:00,686 --> 01:20:01,387 estimates don't match reality 1552 01:20:01,387 --> 01:20:04,387 Exactly like what could happen 1553 01:20:04,657 --> 01:20:05,257 with this issue. 1554 01:20:05,257 --> 01:20:05,959 Make no mistake running 1555 01:20:05,959 --> 01:20:09,162 the power grid will only make 1556 01:20:09,162 --> 01:20:09,695 these other headaches seem 1557 01:20:09,695 --> 01:20:10,329 minor by comparison. 1558 01:20:10,329 --> 01:20:13,329 The minute this ill fated 1559 01:20:14,567 --> 01:20:15,368 eminent domain takeover closes 1560 01:20:15,368 --> 01:20:15,968 ,people will expect you to 1561 01:20:15,968 --> 01:20:16,436 immediately lower their 1562 01:20:16,436 --> 01:20:18,436 electric rates. 1563 01:20:20,205 --> 01:20:20,940 But you won't be able to 1564 01:20:20,940 --> 01:20:21,607 because you have spent billions 1565 01:20:21,607 --> 01:20:24,243 to buy the system and might 1566 01:20:24,243 --> 01:20:24,977 actually need those rates to 1567 01:20:24,977 --> 01:20:25,578 increase to pay off the massive 1568 01:20:25,578 --> 01:20:27,978 bond debt and associated 1569 01:20:28,915 --> 01:20:29,682 integration costs. 1570 01:20:29,682 --> 01:20:30,316 You all have a tough job. 1571 01:20:30,316 --> 01:20:30,917 You have enough headaches. 1572 01:20:30,917 --> 01:20:33,317 Save yourself this one. 1573 01:20:33,886 --> 01:20:34,587 Thank you. 1574 01:20:34,587 --> 01:20:37,587 Thank you for your comments. 1575 01:20:38,324 --> 01:20:38,992 Next speaker is Jay Wilder. 1576 01:20:38,992 --> 01:20:39,626 If you're holding a sign, 1577 01:20:39,626 --> 01:20:42,260 remember there are people 1578 01:20:42,996 --> 01:20:43,696 behind you that might want to 1579 01:20:43,696 --> 01:20:44,530 see our smiling faces up here. 1580 01:20:44,530 --> 01:20:48,967 So use the back row if you want 1581 01:20:48,967 --> 01:20:49,702 to hold the signs up so we can 1582 01:20:49,702 --> 01:20:50,269 read them because you big fonts 1583 01:20:50,269 --> 01:20:50,837 but have a courtesy to 1584 01:20:50,837 --> 01:20:53,237 the people behind you. 1585 01:20:53,472 --> 01:20:53,873 Thank you. 1586 01:20:53,873 --> 01:20:54,540 Hello. 1587 01:20:54,540 --> 01:20:55,174 Thank you for your time. 1588 01:20:55,174 --> 01:20:58,174 My name is Jay Walder. 1589 01:20:58,911 --> 01:20:59,479 I'm PRESIDENT Of ibew Local 465 1590 01:20:59,479 --> 01:20:59,912 and alignment during 1591 01:20:59,912 --> 01:21:01,912 the alignment. 1592 01:21:02,582 --> 01:21:03,349 I'm also a marine Corps veteran 1593 01:21:03,349 --> 01:21:06,949 husband father to two kids and 1594 01:21:06,953 --> 01:21:07,620 I'm and I've defended 1595 01:21:07,620 --> 01:21:08,321 the nation and our freedom. 1596 01:21:08,321 --> 01:21:08,988 Today I am speaking to defend 1597 01:21:08,988 --> 01:21:11,988 my union members and protect 1598 01:21:12,893 --> 01:21:13,660 their jobs. 1599 01:21:13,660 --> 01:21:14,327 Don't do this like I've trained 1600 01:21:14,327 --> 01:21:17,163 for 20 plus years under ibew 1601 01:21:17,163 --> 01:21:17,831 desk to learn this complex and 1602 01:21:17,831 --> 01:21:18,431 ever changing system and I'm 1603 01:21:18,431 --> 01:21:20,831 learning more every day. 1604 01:21:22,350 --> 01:21:22,601 This is not something you can 1605 01:21:22,601 --> 01:21:23,269 just learn overnight. 1606 01:21:23,269 --> 01:21:26,869 It will take you decades and 1607 01:21:26,973 --> 01:21:27,640 all the while my vw brothers 1608 01:21:27,640 --> 01:21:28,341 and sisters and I will fight 1609 01:21:28,341 --> 01:21:31,678 you every step of the way to 1610 01:21:31,678 --> 01:21:32,412 protect union jobs. 1611 01:21:32,412 --> 01:21:33,179 Let's not go to war. 1612 01:21:33,179 --> 01:21:36,583 Let's find a way to work 1613 01:21:36,583 --> 01:21:37,283 together to address real 1614 01:21:37,283 --> 01:21:38,180 priorities in San Diego like 1615 01:21:38,180 --> 01:21:40,180 homelessness especially veteran 1616 01:21:41,855 --> 01:21:42,222 homelessness, mental health and 1617 01:21:42,222 --> 01:21:42,856 addiction. 1618 01:21:42,856 --> 01:21:44,900 This is where we should be 1619 01:21:44,900 --> 01:21:44,457 spending valuable city 1620 01:21:44,457 --> 01:21:46,457 resources. 1621 01:21:49,950 --> 01:21:49,663 Thank you for your time. 1622 01:21:49,663 --> 01:21:51,663 >> Thank you. 1623 01:21:54,301 --> 01:21:54,601 Our next speaker is Al Sanchez 1624 01:21:54,601 --> 01:21:55,302 . 1625 01:21:55,302 --> 01:21:56,200 >> Thank you, council members. 1626 01:21:56,200 --> 01:21:59,602 My name's Al Sanchez and I'm 1627 01:21:59,606 --> 01:22:00,240 here on behalf of Local 89 and 1628 01:22:00,240 --> 01:22:00,573 my business manager Bella 1629 01:22:00,573 --> 01:22:02,573 Marcelo. 1630 01:22:04,440 --> 01:22:04,744 We're here today to communicate 1631 01:22:04,744 --> 01:22:07,744 our opposition to the efforts 1632 01:22:09,480 --> 01:22:09,649 of bringing the work union 1633 01:22:09,649 --> 01:22:10,160 contractors currently do 1634 01:22:10,160 --> 01:22:12,160 in-house. 1635 01:22:13,720 --> 01:22:14,421 We do not mean we do not 1636 01:22:14,421 --> 01:22:14,855 benefit the city taxpayers or 1637 01:22:14,855 --> 01:22:16,855 our employees. 1638 01:22:18,191 --> 01:22:18,925 The studies have shown 1639 01:22:18,925 --> 01:22:22,525 the studies have not proven you 1640 01:22:23,129 --> 01:22:23,930 with real opportunities costs 1641 01:22:23,930 --> 01:22:27,530 for what is needed to actually 1642 01:22:28,680 --> 01:22:28,835 manage this reliably utility 1643 01:22:28,835 --> 01:22:29,202 and keep it keep the lights on 1644 01:22:29,202 --> 01:22:31,202 24 hours. 1645 01:22:33,173 --> 01:22:33,773 Nor does it address the costs 1646 01:22:33,773 --> 01:22:34,374 needed for worker safety 1647 01:22:34,374 --> 01:22:36,774 working in highly highly 1648 01:22:38,145 --> 01:22:38,712 skilled working workforce, 1649 01:22:38,712 --> 01:22:39,412 skilled workforce and 1650 01:22:39,412 --> 01:22:41,812 competitive wages and benefits 1651 01:22:42,749 --> 01:22:43,350 and construction expertise in 1652 01:22:43,350 --> 01:22:44,510 building and maintaining 1653 01:22:44,510 --> 01:22:45,953 the grid and pipelines in San 1654 01:22:45,953 --> 01:22:47,953 Diego. 1655 01:22:51,125 --> 01:22:51,758 We don't believe this business 1656 01:22:51,758 --> 01:22:54,758 is served in the cities. 1657 01:22:56,897 --> 01:22:57,219 >> Good interest of doing this 1658 01:22:57,219 --> 01:22:57,931 . 1659 01:22:57,931 --> 01:22:58,665 >> We asked the council to 1660 01:22:58,665 --> 01:22:59,232 direct their time and resources 1661 01:22:59,232 --> 01:22:59,600 in delivering the city 1662 01:22:59,600 --> 01:23:01,600 services. 1663 01:23:04,438 --> 01:23:05,138 >> Thank you Mayor Because 1664 01:23:05,138 --> 01:23:05,805 Greensky while Matt approaches 1665 01:23:05,805 --> 01:23:08,805 the microphone could make a 1666 01:23:09,342 --> 01:23:11,742 erroneous Britney says Rihanna 1667 01:23:13,213 --> 01:23:13,914 barrel Bill Powers and 1668 01:23:13,914 --> 01:23:16,914 allegedly Audra please come to 1669 01:23:18,352 --> 01:23:18,786 the front row. 1670 01:23:18,786 --> 01:23:19,520 Please begin. 1671 01:23:19,520 --> 01:23:21,920 Good afternoon council members. 1672 01:23:24,191 --> 01:23:24,892 My name is Max Stransky I'm 1673 01:23:24,892 --> 01:23:25,592 speaking We have today of acp 1674 01:23:25,592 --> 01:23:27,992 Local 127 the dedicated city 1675 01:23:28,595 --> 01:23:29,296 workers who keeps an you 1676 01:23:29,296 --> 01:23:29,930 running as you know local 127 1677 01:23:29,930 --> 01:23:31,930 represents the hardworking 1678 01:23:33,634 --> 01:23:34,234 employees of our maintenance 1679 01:23:34,234 --> 01:23:34,868 labor skilled trades and 1680 01:23:34,868 --> 01:23:37,268 equipment operators and so 1681 01:23:38,105 --> 01:23:38,872 forth. 1682 01:23:38,872 --> 01:23:39,539 Our members are on the front 1683 01:23:39,539 --> 01:23:40,173 frontlines serving the city 1684 01:23:40,173 --> 01:23:42,509 every single day and their 1685 01:23:42,509 --> 01:23:43,477 stability is our top priority. 1686 01:23:43,477 --> 01:23:47,770 It is our concern that that's 1687 01:23:47,810 --> 01:23:47,848 stability and the fiscal health 1688 01:23:47,848 --> 01:23:51,352 of our city that local 127 must 1689 01:23:51,352 --> 01:23:51,952 express its continued objection 1690 01:23:51,952 --> 01:23:52,720 regarding public power. 1691 01:23:52,720 --> 01:23:56,320 We have met with the proponents 1692 01:23:56,857 --> 01:23:57,157 to express the same concerns to 1693 01:23:57,157 --> 01:23:57,858 them. 1694 01:23:57,858 --> 01:23:58,559 While we understand the desire 1695 01:23:58,559 --> 01:24:00,959 to explore alternative models, 1696 01:24:01,762 --> 01:24:02,396 we believe this current 1697 01:24:02,396 --> 01:24:02,897 proposal presents too many 1698 01:24:02,897 --> 01:24:04,897 unresolved risks. 1699 01:24:05,599 --> 01:24:06,233 One lack of consensus This 1700 01:24:06,233 --> 01:24:08,633 initiative has come before 1701 01:24:09,770 --> 01:24:10,437 the council multiple times and 1702 01:24:10,437 --> 01:24:11,710 has struggled to find viable 1703 01:24:11,710 --> 01:24:11,739 path forward Demonstrating 1704 01:24:11,739 --> 01:24:14,139 the community and leadership 1705 01:24:15,175 --> 01:24:15,476 remained deeply divided on this 1706 01:24:15,476 --> 01:24:17,476 issue. 1707 01:24:19,447 --> 01:24:20,114 Workforce uncertainty The Phase 1708 01:24:20,114 --> 01:24:20,714 two report does not provide 1709 01:24:20,714 --> 01:24:21,148 the concrete assurances. 1710 01:24:21,148 --> 01:24:21,849 >> Thank you. 1711 01:24:21,849 --> 01:24:24,849 That does conclude your time. 1712 01:24:27,540 --> 01:24:27,788 Mark o'Brien is Good afternoon 1713 01:24:27,788 --> 01:24:28,389 Council My name is Mark o'Brien 1714 01:24:28,389 --> 01:24:30,789 is political director of 1715 01:24:31,292 --> 01:24:31,859 the San Diego and Imperial 1716 01:24:31,859 --> 01:24:32,560 County Labor Council. 1717 01:24:32,560 --> 01:24:33,260 We're proud to represent over 1718 01:24:33,260 --> 01:24:35,260 100 unions and 200,000 working 1719 01:24:36,530 --> 01:24:37,331 families including our brothers 1720 01:24:37,331 --> 01:24:38,320 and sisters in ibew 46 five and 1721 01:24:38,320 --> 01:24:41,320 we're here standing with them 1722 01:24:41,602 --> 01:24:42,270 in efforts to oppose them in 1723 01:24:42,270 --> 01:24:42,603 its opposition to this power 1724 01:24:42,603 --> 01:24:43,270 company. 1725 01:24:43,270 --> 01:24:45,740 We know the struggles of our 1726 01:24:45,740 --> 01:24:46,540 members to make it in San Diego 1727 01:24:46,540 --> 01:24:47,241 right now and we know that 1728 01:24:47,241 --> 01:24:47,541 consumers are paying the same 1729 01:24:47,541 --> 01:24:48,276 thing. 1730 01:24:48,276 --> 01:24:51,450 But we also know that right now 1731 01:24:51,450 --> 01:24:51,746 our city resources are 1732 01:24:51,746 --> 01:24:52,413 stretched very, very thin and 1733 01:24:52,413 --> 01:24:53,470 now is not the time to risk 1734 01:24:53,470 --> 01:24:55,447 those limited resources on 1735 01:24:56,150 --> 01:24:56,751 the utility take. 1736 01:24:56,751 --> 01:24:57,418 Workers could lose their 1737 01:24:57,418 --> 01:24:59,818 pensions and retirement and 1738 01:25:00,721 --> 01:25:01,522 the hard fought benefits. 1739 01:25:01,522 --> 01:25:02,223 We stand with the hundreds of 1740 01:25:02,223 --> 01:25:02,590 workers that could lose these 1741 01:25:02,590 --> 01:25:03,290 benefits. 1742 01:25:03,290 --> 01:25:03,591 Please don't gamble with their 1743 01:25:03,591 --> 01:25:04,292 jobs. 1744 01:25:04,292 --> 01:25:04,992 We have bigger priorities and 1745 01:25:04,992 --> 01:25:07,127 we thank you for your support. 1746 01:25:07,127 --> 01:25:07,528 >> Thank you. 1747 01:25:07,528 --> 01:25:09,528 Thank you. 1748 01:25:12,299 --> 01:25:13,340 Britney says hi. 1749 01:25:13,340 --> 01:25:13,734 Good afternoon council members. 1750 01:25:13,734 --> 01:25:17,271 Thank you so much for the time 1751 01:25:17,271 --> 01:25:18,105 to comment on this today. 1752 01:25:18,105 --> 01:25:18,806 Like many others here, we have 1753 01:25:18,806 --> 01:25:21,206 serious concerns with this 1754 01:25:22,430 --> 01:25:22,777 study in particular it doesn't 1755 01:25:22,777 --> 01:25:25,777 answer the critical question of 1756 01:25:26,780 --> 01:25:27,414 how much will it actually cost 1757 01:25:27,414 --> 01:25:27,815 to purchase the assets of 1758 01:25:27,815 --> 01:25:29,815 the utility. 1759 01:25:32,587 --> 01:25:33,554 First off, the report gives you 1760 01:25:33,554 --> 01:25:35,925 a range of between 2 and 2 and 1761 01:25:35,925 --> 01:25:36,223 a half and $7.5 billion a huge 1762 01:25:36,223 --> 01:25:38,223 range. 1763 01:25:39,994 --> 01:25:40,661 The cost to just purchase 1764 01:25:40,661 --> 01:25:43,610 the assets is $9.3 billion. 1765 01:25:44,732 --> 01:25:45,399 The study also omits some key 1766 01:25:45,399 --> 01:25:46,670 costs including the cost to 1767 01:25:46,670 --> 01:25:48,467 make our remaining customers 1768 01:25:49,704 --> 01:25:50,471 whole. 1769 01:25:50,471 --> 01:25:51,105 If the city were to leave 1770 01:25:51,105 --> 01:25:53,505 the surrounding cities and 1771 01:25:54,308 --> 01:25:54,976 unincorporated county would see 1772 01:25:54,976 --> 01:25:55,643 an increase in their rates. 1773 01:25:55,643 --> 01:25:58,643 There is precedent that says 1774 01:25:59,914 --> 01:26:00,581 that the city would need to 1775 01:26:00,581 --> 01:26:01,249 make sure that that does not 1776 01:26:01,249 --> 01:26:04,652 happen so there would be an 1777 01:26:04,652 --> 01:26:04,953 exit fee of billions of dollars 1778 01:26:04,953 --> 01:26:05,620 . 1779 01:26:05,620 --> 01:26:06,154 Finally the city this study 1780 01:26:06,154 --> 01:26:08,154 also isn't including 1781 01:26:09,490 --> 01:26:10,258 the significant wildfire risk 1782 01:26:10,258 --> 01:26:10,758 that is part of San Diego. 1783 01:26:10,758 --> 01:26:11,326 It doesn't include 1784 01:26:11,326 --> 01:26:13,726 the insurance costs or 1785 01:26:14,829 --> 01:26:15,496 mitigation. 1786 01:26:15,496 --> 01:26:15,897 Thank you very much. 1787 01:26:15,897 --> 01:26:17,897 Thank you. 1788 01:26:21,536 --> 01:26:22,170 Next speaker is Brianna Barrow. 1789 01:26:22,170 --> 01:26:22,503 >> Good afternoon, council 1790 01:26:22,503 --> 01:26:24,503 members. 1791 01:26:24,972 --> 01:26:25,707 My name is Brianna Berman and 1792 01:26:25,707 --> 01:26:26,274 local business owner and I also 1793 01:26:26,274 --> 01:26:27,750 run a local nonprofit. 1794 01:26:27,750 --> 01:26:29,744 So public power MAY be a good 1795 01:26:29,744 --> 01:26:30,145 idea and it MAY also be a 1796 01:26:30,145 --> 01:26:30,745 costly idea. 1797 01:26:30,745 --> 01:26:31,479 Both things can be true. 1798 01:26:31,479 --> 01:26:34,282 My concern is not about 1799 01:26:34,282 --> 01:26:34,649 protecting one institution over 1800 01:26:34,649 --> 01:26:35,183 the other. 1801 01:26:35,183 --> 01:26:35,917 My concern is about 1802 01:26:35,917 --> 01:26:36,284 workability, accountability and 1803 01:26:36,284 --> 01:26:38,284 integrity. 1804 01:26:39,154 --> 01:26:39,721 If the city is going to pursue 1805 01:26:39,721 --> 01:26:40,255 a public power model, 1806 01:26:40,255 --> 01:26:40,655 the process must be 1807 01:26:40,655 --> 01:26:42,655 transparent. 1808 01:26:43,124 --> 01:26:43,825 The numbers must be complete 1809 01:26:43,825 --> 01:26:44,458 and the public must understand 1810 01:26:44,458 --> 01:26:46,858 exactly what they're being 1811 01:26:48,396 --> 01:26:49,300 asked to carry as a ratepayer I 1812 01:26:49,300 --> 01:26:49,698 want relief as a taxpayer. 1813 01:26:49,698 --> 01:26:50,980 I want responsibility as a 1814 01:26:50,980 --> 01:26:52,980 contractor. 1815 01:26:53,134 --> 01:26:53,802 I want fair opportunity as a 1816 01:26:53,802 --> 01:26:54,102 community centered business 1817 01:26:54,102 --> 01:26:54,803 owner. 1818 01:26:54,803 --> 01:26:58,105 I want solutions that did not 1819 01:26:58,105 --> 01:26:58,807 leave the people with the least 1820 01:26:58,807 --> 01:26:59,507 margin carrying the most risk 1821 01:26:59,507 --> 01:27:03,107 at this time without a clear 1822 01:27:03,645 --> 01:27:04,312 and definitive understanding of 1823 01:27:04,312 --> 01:27:05,130 the full cost, the risk and 1824 01:27:05,130 --> 01:27:07,482 the impact on city communities 1825 01:27:07,482 --> 01:27:08,183 I cannot support moving forward 1826 01:27:08,183 --> 01:27:08,950 with the municipal ization and 1827 01:27:08,950 --> 01:27:12,821 I ask that you do not either. 1828 01:27:12,821 --> 01:27:13,221 Thank you. 1829 01:27:13,221 --> 01:27:13,888 Thank you. 1830 01:27:13,888 --> 01:27:16,288 Bill Powers While Bill 1831 01:27:18,590 --> 01:27:19,270 approaches the microphone could 1832 01:27:19,270 --> 01:27:22,130 I have Mike Miller okay all 1833 01:27:22,130 --> 01:27:25,130 the Monday Neil Winter John 1834 01:27:26,668 --> 01:27:27,369 Mattis and Barbara Pinto 1835 01:27:27,369 --> 01:27:30,369 approach the front row please 1836 01:27:31,540 --> 01:27:32,206 begin Bill Powers Board Member, 1837 01:27:32,206 --> 01:27:35,206 Public Power San Diego I'll 1838 01:27:35,610 --> 01:27:36,311 start with Labor. 1839 01:27:36,311 --> 01:27:36,878 The veteran utility workers 1840 01:27:36,878 --> 01:27:40,478 will be key to the new 1841 01:27:41,216 --> 01:27:42,840 utility's credibility Labor 1842 01:27:42,840 --> 01:27:42,784 does need to have a seat on 1843 01:27:42,784 --> 01:27:43,518 the utilities governing board. 1844 01:27:43,518 --> 01:27:46,755 Labor also needs to be a part 1845 01:27:46,755 --> 01:27:47,422 of the blue ribbon panel that 1846 01:27:47,422 --> 01:27:48,900 selects the critical initial 1847 01:27:48,900 --> 01:27:51,900 governing board with the die 1848 01:27:51,359 --> 01:27:52,194 gets cast. 1849 01:27:52,194 --> 01:27:54,663 New Jersey's first public power 1850 01:27:54,663 --> 01:27:55,330 study for the city was in 2020. 1851 01:27:55,330 --> 01:27:55,998 That study only looked at 1852 01:27:55,998 --> 01:27:57,998 distribution a distribution 1853 01:27:59,835 --> 01:28:00,669 only utility low voltage. 1854 01:28:00,669 --> 01:28:03,705 It did not look at transmission 1855 01:28:03,705 --> 01:28:04,406 and distribution phase one and 1856 01:28:04,406 --> 01:28:08,376 phase two that only at&t at&t 1857 01:28:08,376 --> 01:28:09,440 utility would be completely 1858 01:28:09,440 --> 01:28:09,444 contained within the city's 1859 01:28:09,444 --> 01:28:10,450 boundaries. 1860 01:28:10,450 --> 01:28:12,450 Crossing jurisdictional 1861 01:28:13,382 --> 01:28:14,490 boundaries would trigger Lasko 1862 01:28:14,490 --> 01:28:14,716 review that would occur six 1863 01:28:14,716 --> 01:28:17,116 years to the implementation 1864 01:28:17,986 --> 01:28:18,620 schedule That would be a 1865 01:28:18,620 --> 01:28:18,921 momentum killer for public 1866 01:28:18,921 --> 01:28:20,921 power. 1867 01:28:22,657 --> 01:28:23,292 In San Diego we obtained a 1868 01:28:23,292 --> 01:28:23,959 Phase two financial model 1869 01:28:23,959 --> 01:28:24,526 through a Public Records Act 1870 01:28:24,526 --> 01:28:26,926 request New Dennis set 1871 01:28:28,297 --> 01:28:28,831 the model up so you can click a 1872 01:28:28,831 --> 01:28:29,498 button and look at a 1873 01:28:29,498 --> 01:28:30,332 distribution only structure. 1874 01:28:30,332 --> 01:28:33,680 >> There is no more work to do 1875 01:28:33,680 --> 01:28:33,769 to assess distribution. 1876 01:28:33,769 --> 01:28:34,169 >> That is the way to go. 1877 01:28:34,169 --> 01:28:36,138 Thank you. 1878 01:28:36,138 --> 01:28:38,138 Thank you. 1879 01:28:46,482 --> 01:28:48,882 Next speakers allegedly Audra 1880 01:28:51,954 --> 01:28:52,821 Yeah so I mean as dg any roms 1881 01:28:52,821 --> 01:28:53,522 Peter to pay Paul but so do you 1882 01:28:53,522 --> 01:28:56,522 guys and so that's what's 1883 01:28:57,292 --> 01:28:58,260 concerning about this going 1884 01:28:58,260 --> 01:28:58,761 into your hands especially when 1885 01:28:58,761 --> 01:29:02,264 you talk about savings and that 1886 01:29:02,264 --> 01:29:03,132 not really being feasible of 1887 01:29:03,132 --> 01:29:07,332 course not because sd g and e 1888 01:29:07,670 --> 01:29:08,337 is aggressively opposed to you 1889 01:29:08,337 --> 01:29:09,305 guys doing this So this will 1890 01:29:09,305 --> 01:29:12,841 end up in litigation So it will 1891 01:29:12,841 --> 01:29:13,509 cost the people more than 1892 01:29:13,509 --> 01:29:16,509 the billions of dollars that 1893 01:29:17,413 --> 01:29:18,214 you are you know, talking about 1894 01:29:18,214 --> 01:29:18,848 here And I mean with the storm 1895 01:29:18,848 --> 01:29:19,515 infrastructure needing $5 1896 01:29:19,515 --> 01:29:22,515 billion, it's like how many 1897 01:29:23,652 --> 01:29:24,253 billions of dollars do you guys 1898 01:29:24,253 --> 01:29:24,653 need in order to provide 1899 01:29:24,653 --> 01:29:26,653 the things? 1900 01:29:28,491 --> 01:29:29,258 But again, you can't be trusted 1901 01:29:29,258 --> 01:29:29,959 with this type of thing when 1902 01:29:29,959 --> 01:29:33,361 you are not good stewards of 1903 01:29:33,361 --> 01:29:34,129 our money and when this is 1904 01:29:34,129 --> 01:29:34,830 going to be something that is 1905 01:29:34,830 --> 01:29:37,830 San Diego community power is 1906 01:29:38,334 --> 01:29:38,968 engaged with when they're 1907 01:29:38,968 --> 01:29:39,535 talking about keeping data 1908 01:29:39,535 --> 01:29:41,935 centers on and having 1909 01:29:43,572 --> 01:29:44,273 the public in the community not 1910 01:29:44,273 --> 01:29:45,700 have power during that time 1911 01:29:45,700 --> 01:29:45,741 that is extremely egregious and 1912 01:29:45,741 --> 01:29:49,341 people need to pay attention to 1913 01:29:49,912 --> 01:29:50,546 that because there's meetings 1914 01:29:50,546 --> 01:29:50,980 that are talking about it. 1915 01:29:50,980 --> 01:29:52,980 >> Thank you. 1916 01:29:54,383 --> 01:29:57,383 Next speaker is Mike Miller. 1917 01:30:01,424 --> 01:30:02,191 >> Good afternoon counsel. 1918 01:30:02,191 --> 01:30:02,825 The more we learn about Jionni 1919 01:30:02,825 --> 01:30:05,995 the more appalled I am at 1920 01:30:05,995 --> 01:30:06,796 the amount of corporate greed 1921 01:30:06,796 --> 01:30:07,496 that goes on that organization. 1922 01:30:07,496 --> 01:30:09,896 Their average profit for 1923 01:30:10,132 --> 01:30:10,833 the last four years is over 1924 01:30:10,833 --> 01:30:13,233 $800 million and their parent 1925 01:30:16,380 --> 01:30:16,706 company also spends nearly $300 1926 01:30:16,706 --> 01:30:17,340 million annually in campaign 1927 01:30:17,340 --> 01:30:19,410 donations and lobbying and 1928 01:30:19,410 --> 01:30:21,441 counting on $2,000 to Donald 1929 01:30:24,413 --> 01:30:24,714 Trump's inauguration last year 1930 01:30:24,714 --> 01:30:25,447 . 1931 01:30:25,447 --> 01:30:26,148 Obviously there are a lot of 1932 01:30:26,148 --> 01:30:26,883 questions and things that need 1933 01:30:26,883 --> 01:30:30,119 to be figured out before this 1934 01:30:30,119 --> 01:30:30,853 goes into place and it's 1935 01:30:30,853 --> 01:30:31,554 obviously an informational item 1936 01:30:31,554 --> 01:30:34,554 and I'm grateful you're taking 1937 01:30:35,858 --> 01:30:36,559 the time to consider it and I 1938 01:30:36,559 --> 01:30:40,159 hope that you consider to look 1939 01:30:41,330 --> 01:30:42,640 at it more because personally I 1940 01:30:42,640 --> 01:30:42,899 just can't imagine what I would 1941 01:30:42,899 --> 01:30:45,468 do with an excess amount of 1942 01:30:45,468 --> 01:30:46,168 even $1 million every year And 1943 01:30:46,168 --> 01:30:46,836 I'm sure there's a better way 1944 01:30:46,836 --> 01:30:47,737 that we can find to use that 1945 01:30:47,737 --> 01:30:48,370 money to help the people of San 1946 01:30:48,370 --> 01:30:50,370 Diego. 1947 01:30:55,177 --> 01:30:55,578 >> Thank you. 1948 01:30:55,578 --> 01:30:56,445 Thank you. 1949 01:30:56,445 --> 01:30:59,482 Gail via Marty Well Gail comes 1950 01:30:59,482 --> 01:31:00,350 to the microphone. 1951 01:31:00,350 --> 01:31:00,850 You do have time ceded to you 1952 01:31:00,850 --> 01:31:02,850 by Neil Winter. 1953 01:31:05,588 --> 01:31:05,888 Neil can you raise your hand? 1954 01:31:05,888 --> 01:31:06,289 Okay. 1955 01:31:06,289 --> 01:31:06,923 Thank you. 1956 01:31:06,923 --> 01:31:07,290 You will have two minutes. 1957 01:31:07,290 --> 01:31:08,257 Thank you. 1958 01:31:08,257 --> 01:31:11,928 My name is Gail b one time a 1959 01:31:11,928 --> 01:31:12,562 proud resident of District nine 1960 01:31:12,562 --> 01:31:13,196 and I'm also the chair of 1961 01:31:13,196 --> 01:31:13,796 the board of directors of 1962 01:31:13,796 --> 01:31:16,196 Public Power San Diego. 1963 01:31:16,432 --> 01:31:17,100 And I'd like to make an 1964 01:31:17,100 --> 01:31:17,800 important distinction here. 1965 01:31:17,800 --> 01:31:20,800 There's a difference between a 1966 01:31:22,305 --> 01:31:22,972 nonprofit public utility versus 1967 01:31:22,972 --> 01:31:23,306 a for profit investor owned 1968 01:31:23,306 --> 01:31:25,306 utility. 1969 01:31:28,411 --> 01:31:29,111 And the definition of municipal 1970 01:31:29,111 --> 01:31:32,111 as a nonprofit public utility 1971 01:31:33,883 --> 01:31:34,284 does not have to be quote run 1972 01:31:34,284 --> 01:31:35,151 by the city. 1973 01:31:35,151 --> 01:31:39,550 So you can all kind of public 1974 01:31:39,550 --> 01:31:39,823 thank GOD because there are 1975 01:31:39,823 --> 01:31:42,823 challenges but there are cities 1976 01:31:44,827 --> 01:31:45,495 this has been something that 1977 01:31:45,495 --> 01:31:45,895 has been done for 100 years. 1978 01:31:45,895 --> 01:31:47,895 All right. 1979 01:31:50,567 --> 01:31:51,267 And it's been done in over 40 1980 01:31:51,267 --> 01:31:53,667 cities in California including 1981 01:31:56,439 --> 01:31:57,173 Sacramento, by the way they do 1982 01:31:57,173 --> 01:32:01,373 it And on the average they have 1983 01:32:02,679 --> 01:32:03,790 half the rates we do And better 1984 01:32:03,790 --> 01:32:03,713 reliability. 1985 01:32:03,713 --> 01:32:04,130 So I think that's one key 1986 01:32:04,130 --> 01:32:06,130 point. 1987 01:32:07,850 --> 01:32:08,551 I just like to leave you with 1988 01:32:08,551 --> 01:32:09,185 the other point is our union 1989 01:32:09,185 --> 01:32:11,585 brothers and sisters, they 1990 01:32:13,489 --> 01:32:14,190 deserve to have certainly their 1991 01:32:14,190 --> 01:32:14,858 benefits, their compensation, 1992 01:32:14,858 --> 01:32:15,225 their seniority, all of that 1993 01:32:15,225 --> 01:32:15,926 protected. 1994 01:32:15,926 --> 01:32:19,526 I don't think that was really 1995 01:32:20,463 --> 01:32:21,331 part of the study. 1996 01:32:21,331 --> 01:32:22,320 I mean I don't think it was 1997 01:32:22,320 --> 01:32:26,200 meant to be part of the study 1998 01:32:26,200 --> 01:32:26,603 but that's certainly part of 1999 01:32:26,603 --> 01:32:27,304 any conversation I have 2000 01:32:27,304 --> 01:32:29,704 personally been involved with. 2001 01:32:32,750 --> 01:32:32,842 They talked about the possible 2002 01:32:32,842 --> 01:32:35,842 future of a nonprofit utility. 2003 01:32:37,280 --> 01:32:37,947 In fact, public utilities have 2004 01:32:37,947 --> 01:32:38,648 80 to 90% unionization rate 2005 01:32:38,648 --> 01:32:41,480 whereas private utilities have 2006 01:32:43,286 --> 01:32:43,786 I guess what, a 30% 2007 01:32:43,786 --> 01:32:44,154 unionization rate. 2008 01:32:44,154 --> 01:32:46,154 All right. 2009 01:32:49,526 --> 01:32:49,926 So there's a really big 2010 01:32:49,926 --> 01:32:50,660 difference. 2011 01:32:50,660 --> 01:32:51,395 So the unions would benefit And 2012 01:32:51,395 --> 01:32:55,265 I know that you know you have a 2013 01:32:55,265 --> 01:32:55,999 contract with sd g and that 2014 01:32:55,999 --> 01:32:57,999 precludes certain conversations 2015 01:33:01,171 --> 01:33:01,872 but you would benefit union 2016 01:33:01,872 --> 01:33:02,539 members would benefit both in 2017 01:33:02,539 --> 01:33:03,240 terms of their families and 2018 01:33:03,240 --> 01:33:06,240 their immediate costs and in 2019 01:33:07,311 --> 01:33:08,178 terms of their status. 2020 01:33:08,178 --> 01:33:08,512 No one is looking to change any 2021 01:33:08,512 --> 01:33:09,460 of that. 2022 01:33:09,460 --> 01:33:11,446 Thank you very much. 2023 01:33:12,683 --> 01:33:13,116 Thank you. 2024 01:33:13,116 --> 01:33:13,784 John Madison. 2025 01:33:13,784 --> 01:33:16,184 Next, while John approaches 2026 01:33:18,822 --> 01:33:19,522 the microphone, I would ask 2027 01:33:19,522 --> 01:33:21,522 that Patricia Mendoza 2028 01:33:25,562 --> 01:33:28,562 the ferryman, Adriana Cizik and 2029 01:33:32,690 --> 01:33:32,669 Kevin Machado please approach 2030 01:33:32,669 --> 01:33:33,236 the front row please me. 2031 01:33:33,236 --> 01:33:35,236 >> John matters here. 2032 01:33:36,974 --> 01:33:37,674 I'm here on the reality of 2033 01:33:37,674 --> 01:33:38,410 the crisis facing the city of 2034 01:33:38,410 --> 01:33:40,410 San Diego. 2035 01:33:43,147 --> 01:33:43,647 Proudly you took the first step 2036 01:33:43,647 --> 01:33:46,470 in a path forward. 2037 01:33:48,850 --> 01:33:48,752 The crisis is one quarter of 2038 01:33:48,752 --> 01:33:49,386 the people here in this city 2039 01:33:49,386 --> 01:33:51,786 can't afford their bills. 2040 01:33:55,910 --> 01:33:55,959 Wants to month they can't pay. 2041 01:33:55,959 --> 01:33:59,559 If you ask the question why 2042 01:34:00,197 --> 01:34:00,864 can't they? 2043 01:34:00,864 --> 01:34:01,598 Is it because they have 2044 01:34:01,598 --> 01:34:05,198 the highest rates in the state? 2045 01:34:06,169 --> 01:34:06,670 Is it because they want another 2046 01:34:06,670 --> 01:34:07,204 8% rate increase? 2047 01:34:07,204 --> 01:34:09,204 That's the reality. 2048 01:34:13,544 --> 01:34:14,211 We have a powerful quote. 2049 01:34:14,211 --> 01:34:15,279 We have a plan. 2050 01:34:15,279 --> 01:34:18,515 We have a plan that saves your 2051 01:34:18,515 --> 01:34:18,916 constituents tens of thousands 2052 01:34:18,916 --> 01:34:20,916 of dollars. 2053 01:34:24,621 --> 01:34:25,422 Help us get out of this crisis 2054 01:34:25,422 --> 01:34:26,123 of unaffordability of a key 2055 01:34:26,123 --> 01:34:26,490 component of our life here in 2056 01:34:26,490 --> 01:34:28,490 San Diego. 2057 01:34:31,528 --> 01:34:31,829 And that is our outrageous g&a 2058 01:34:31,829 --> 01:34:32,263 rate. 2059 01:34:32,263 --> 01:34:34,263 >> Thank you. 2060 01:34:34,965 --> 01:34:36,965 Thank you. 2061 01:34:42,172 --> 01:34:43,400 >> Barbara Pinto. 2062 01:34:43,400 --> 01:34:43,774 Barbara, you do have time ceded 2063 01:34:43,774 --> 01:34:47,374 to you by Isidora Lopez Magali. 2064 01:34:48,178 --> 01:34:48,679 Can you raise your hand please? 2065 01:34:48,679 --> 01:34:49,146 Thank you. 2066 01:34:49,146 --> 01:34:49,747 And an okay. 2067 01:34:49,747 --> 01:34:51,747 Ana Thank you. 2068 01:34:53,417 --> 01:34:53,784 You have three minutes. 2069 01:34:53,784 --> 01:34:54,251 Thank you. 2070 01:34:54,251 --> 01:34:54,919 Good afternoon. 2071 01:34:54,919 --> 01:34:58,519 My name is Barbara Pinto and 2072 01:35:00,324 --> 01:35:01,250 I'm a resident of San Diego, 2073 01:35:01,250 --> 01:35:01,559 the District 11 Loganathan and 2074 01:35:01,559 --> 01:35:03,959 a member of eighth. 2075 01:35:06,970 --> 01:35:06,697 I have been a resident since 2076 01:35:06,697 --> 01:35:10,297 the 40s in San Diego and 2077 01:35:10,768 --> 01:35:11,469 selling gas and electric has 2078 01:35:11,469 --> 01:35:12,136 been our only utility company 2079 01:35:12,136 --> 01:35:15,736 So it is a monopoly on 2080 01:35:17,410 --> 01:35:17,808 utilities provided since then 2081 01:35:17,808 --> 01:35:18,508 and before Sandy Again we are 2082 01:35:18,508 --> 01:35:21,508 paying the highest prices for 2083 01:35:22,580 --> 01:35:25,580 homes rent, gas, food and 2084 01:35:27,951 --> 01:35:28,586 utilities more almost than 2085 01:35:28,586 --> 01:35:29,287 anyone in the nation. 2086 01:35:29,287 --> 01:35:31,687 Our utility provider dictates 2087 01:35:34,692 --> 01:35:35,426 cost increases services and 2088 01:35:35,426 --> 01:35:39,260 sets no limit on their profits. 2089 01:35:40,364 --> 01:35:41,320 Last year they made a whopping 2090 01:35:41,320 --> 01:35:43,432 $563 million in profits and 2091 01:35:46,503 --> 01:35:47,205 that figure was roughly one 2092 01:35:47,205 --> 01:35:47,705 third lower than it was 2093 01:35:47,705 --> 01:35:48,406 the previous year. 2094 01:35:48,406 --> 01:35:52,600 I'm a senior citizen living on 2095 01:35:52,877 --> 01:35:53,444 a fixed income of Social 2096 01:35:53,444 --> 01:35:53,844 Security and a modest 2097 01:35:53,844 --> 01:35:55,844 retirement. 2098 01:35:58,983 --> 01:35:59,750 I went back to work around 2018 2099 01:35:59,750 --> 01:36:00,318 to keep up with the cost of 2100 01:36:00,318 --> 01:36:02,318 living and inflation. 2101 01:36:05,256 --> 01:36:09,456 i lost my job due to covid. 2102 01:36:11,162 --> 01:36:12,130 In 2021 I prioritize my rent 2103 01:36:12,130 --> 01:36:12,463 and I got behind in my water my 2104 01:36:12,463 --> 01:36:14,463 utility. 2105 01:36:16,100 --> 01:36:16,434 My current utility bill is over 2106 01:36:16,434 --> 01:36:17,101 $3,500. 2107 01:36:17,101 --> 01:36:20,101 I enlisted in a debt 2108 01:36:21,639 --> 01:36:22,307 forgiveness program and said 2109 01:36:22,307 --> 01:36:22,907 they would work with me to 2110 01:36:22,907 --> 01:36:25,907 forgive part of my debt. 2111 01:36:26,110 --> 01:36:26,811 I agreed to pay $111 a month 2112 01:36:26,811 --> 01:36:29,211 for 12 consecutive months but 2113 01:36:31,983 --> 01:36:32,483 that cost changes according to 2114 01:36:32,483 --> 01:36:34,483 my everyday usage. 2115 01:36:37,555 --> 01:36:38,256 I wasn't told that the average 2116 01:36:38,256 --> 01:36:38,590 monthly cost now is about $140 2117 01:36:38,590 --> 01:36:40,590 a month. 2118 01:36:43,161 --> 01:36:43,828 This is difficult when you're 2119 01:36:43,828 --> 01:36:44,395 on a fixed income and you're 2120 01:36:44,395 --> 01:36:47,395 trying to do a budget. 2121 01:36:49,234 --> 01:36:49,901 Why is there no limit on what 2122 01:36:49,901 --> 01:36:50,235 these companies can make in 2123 01:36:50,235 --> 01:36:52,235 profits? 2124 01:36:54,639 --> 01:36:55,730 Even with my return to work I 2125 01:36:55,730 --> 01:36:55,807 am struggling. 2126 01:36:55,807 --> 01:36:58,807 We need services offered at 2127 01:37:01,179 --> 01:37:01,812 more affordable rates. 2128 01:37:01,812 --> 01:37:02,547 We need more competitive 2129 01:37:02,547 --> 01:37:03,915 companies putting people before 2130 01:37:03,915 --> 01:37:05,915 profits. 2131 01:37:09,254 --> 01:37:09,754 Thank you. 2132 01:37:09,754 --> 01:37:10,522 >> Thank you. 2133 01:37:10,522 --> 01:37:12,922 Next speaker is Patricia 2134 01:37:16,994 --> 01:37:17,863 Mendoza. 2135 01:37:17,863 --> 01:37:21,463 >> Hi, my name is Patrick and 2136 01:37:22,200 --> 01:37:22,834 I'm a member of Ace Energy as a 2137 01:37:22,834 --> 01:37:23,335 basic necessity that every 2138 01:37:23,335 --> 01:37:25,335 family depends on. 2139 01:37:29,140 --> 01:37:29,841 We need it to cook continue to 2140 01:37:29,841 --> 01:37:30,542 cut meals, keep the lights on 2141 01:37:30,542 --> 01:37:31,276 after dark, wash close to our 2142 01:37:31,276 --> 01:37:31,610 children and have clean clothes 2143 01:37:31,610 --> 01:37:33,610 to wear. 2144 01:37:34,713 --> 01:37:35,347 Yet these high utility rates 2145 01:37:35,347 --> 01:37:36,810 make everyday activities a 2146 01:37:36,810 --> 01:37:39,810 source of stress, often forcing 2147 01:37:40,151 --> 01:37:40,852 families to make difficult 2148 01:37:40,852 --> 01:37:41,519 choices about the bills to pay 2149 01:37:41,519 --> 01:37:45,119 and which bills to put off. 2150 01:37:46,191 --> 01:37:46,892 It is especially troubling now 2151 01:37:46,892 --> 01:37:47,359 that summer's here it's going 2152 01:37:47,359 --> 01:37:47,959 to be more hot. 2153 01:37:47,959 --> 01:37:48,360 People can't afford air 2154 01:37:48,360 --> 01:37:48,960 conditioner. 2155 01:37:48,960 --> 01:37:49,861 It's going to get colder 2156 01:37:49,861 --> 01:37:51,861 weather outside. 2157 01:37:55,667 --> 01:37:56,100 People can't afford adequate 2158 01:37:56,100 --> 01:37:56,835 heating. 2159 01:37:56,835 --> 01:37:57,502 But right now I also want to 2160 01:37:57,502 --> 01:37:59,902 acknowledge all our brothers 2161 01:38:02,173 --> 01:38:02,841 and sisters here in our union 2162 01:38:02,841 --> 01:38:03,475 brothers and sisters here I 2163 01:38:03,475 --> 01:38:04,142 heard it and I had another 2164 01:38:04,142 --> 01:38:07,742 speech written But I want to 2165 01:38:08,213 --> 01:38:08,847 hear you guys to I want to put 2166 01:38:08,847 --> 01:38:09,548 their voice out there too 2167 01:38:09,548 --> 01:38:09,981 because we need public power. 2168 01:38:09,981 --> 01:38:11,981 We really do. 2169 01:38:14,553 --> 01:38:15,220 But it concerns on your 2170 01:38:15,220 --> 01:38:15,921 concerns about job security. 2171 01:38:15,921 --> 01:38:19,958 We do need public power and we 2172 01:38:19,958 --> 01:38:20,625 need it not at the expense of 2173 01:38:20,625 --> 01:38:21,259 other working class people, 2174 01:38:21,259 --> 01:38:21,626 other working class jobs. 2175 01:38:21,626 --> 01:38:23,626 Thank you. 2176 01:38:27,232 --> 01:38:27,933 That does conclude your time. 2177 01:38:27,933 --> 01:38:28,567 >> We can work together. 2178 01:38:28,567 --> 01:38:31,567 We can Women I'm working. 2179 01:38:32,604 --> 01:38:33,205 We can work together. 2180 01:38:33,205 --> 01:38:33,872 We can work together. 2181 01:38:33,872 --> 01:38:36,872 We're still talking about So 2182 01:38:38,777 --> 01:38:39,344 they make their man work 2183 01:38:39,344 --> 01:38:39,811 together to make this 2184 01:38:39,811 --> 01:38:40,112 transition good. 2185 01:38:40,112 --> 01:38:42,112 Okay. 2186 01:38:43,682 --> 01:38:44,216 All all right. 2187 01:38:44,216 --> 01:38:44,983 >> She set the tone. 2188 01:38:44,983 --> 01:38:45,283 We're not going to do that 2189 01:38:45,283 --> 01:38:45,584 again. 2190 01:38:45,584 --> 01:38:47,584 Okay? 2191 01:38:49,988 --> 01:38:50,322 We're going to keep this 2192 01:38:50,322 --> 01:38:51,220 simple. 2193 01:38:51,220 --> 01:38:51,656 You guys have been fantastic. 2194 01:38:51,656 --> 01:38:51,957 So I'm passionate on both 2195 01:38:51,957 --> 01:38:53,957 sides. 2196 01:38:55,593 --> 01:38:56,261 I've been clear and unambiguous 2197 01:38:56,261 --> 01:38:59,861 but let's have a good civil 2198 01:39:01,500 --> 01:39:02,233 dialog Now you have three 2199 01:39:02,233 --> 01:39:02,901 people sitting your time When I 2200 01:39:02,901 --> 01:39:03,602 call your name please raise 2201 01:39:03,602 --> 01:39:07,202 your hand to confirm your year 2202 01:39:07,673 --> 01:39:10,673 And above all is honor. 2203 01:39:13,512 --> 01:39:13,912 Thank you Gary Carter. 2204 01:39:13,912 --> 01:39:14,379 Gary Clark. 2205 01:39:14,379 --> 01:39:14,679 Corey of Corey. 2206 01:39:14,679 --> 01:39:16,679 Sorry. 2207 01:39:19,484 --> 01:39:20,180 Thank you. 2208 01:39:20,180 --> 01:39:20,385 Oscar Gomez Junior. 2209 01:39:20,385 --> 01:39:21,120 Thank you. 2210 01:39:21,120 --> 01:39:24,120 Your four minutes please begin. 2211 01:39:24,990 --> 01:39:25,456 Good afternoon, Council members 2212 01:39:25,456 --> 01:39:26,910 and city staff. 2213 01:39:26,910 --> 01:39:26,625 My name is Nate Berryman, 2214 01:39:26,625 --> 01:39:27,326 business manager of 2215 01:39:27,326 --> 01:39:29,326 the International Brotherhood 2216 01:39:30,262 --> 01:39:30,963 of Electrical Workers Local 2217 01:39:30,963 --> 01:39:31,663 Union for 65 I represent 2900 2218 01:39:31,663 --> 01:39:34,663 union utility workers here in 2219 01:39:36,301 --> 01:39:37,350 San Diego and several counties. 2220 01:39:37,350 --> 01:39:37,436 And look, I know why we're 2221 01:39:37,436 --> 01:39:38,203 really here. 2222 01:39:38,203 --> 01:39:41,203 People are not happy with 2223 01:39:42,641 --> 01:39:43,308 energy. 2224 01:39:43,308 --> 01:39:43,976 They're not happy with their 2225 01:39:43,976 --> 01:39:44,309 rates or their skyrocketing 2226 01:39:44,309 --> 01:39:44,976 profits. 2227 01:39:44,976 --> 01:39:48,514 People are mad at the never 2228 01:39:48,514 --> 01:39:49,250 ending corporate profits that 2229 01:39:49,250 --> 01:39:49,782 are pulled from our pockets and 2230 01:39:49,782 --> 01:39:51,782 funneled to separate 2231 01:39:53,218 --> 01:39:53,919 shareholders And to be 100% 2232 01:39:53,919 --> 01:39:54,654 honest my members are meant to 2233 01:39:54,654 --> 01:39:55,287 Our members have more in common 2234 01:39:55,287 --> 01:39:58,887 with you in this room than 2235 01:39:59,525 --> 01:40:00,126 utility CEOs or executives. 2236 01:40:00,126 --> 01:40:00,526 Working class people are 2237 01:40:00,526 --> 01:40:01,193 struggling. 2238 01:40:01,193 --> 01:40:04,193 They're struggling to get by 2239 01:40:04,964 --> 01:40:05,498 and something needs to be done 2240 01:40:05,498 --> 01:40:06,232 to provide support. 2241 01:40:06,232 --> 01:40:06,832 But I promise you brothers and 2242 01:40:06,832 --> 01:40:09,232 sisters, this ain't it. 2243 01:40:11,137 --> 01:40:11,871 Our union and our members share 2244 01:40:11,871 --> 01:40:12,571 a mutual interest in the city's 2245 01:40:12,571 --> 01:40:13,205 success and the success of our 2246 01:40:13,205 --> 01:40:15,605 communities success of our 2247 01:40:17,543 --> 01:40:18,210 mayor, our council and 2248 01:40:18,210 --> 01:40:18,944 the utility who's delivering 2249 01:40:18,944 --> 01:40:21,944 these essential services to San 2250 01:40:22,615 --> 01:40:23,115 Diego's municipal division is 2251 01:40:23,115 --> 01:40:23,683 bad for everyone. 2252 01:40:23,683 --> 01:40:24,116 It will not solve for 2253 01:40:24,116 --> 01:40:24,783 affordability. 2254 01:40:24,783 --> 01:40:27,783 It will destroy our union 2255 01:40:29,522 --> 01:40:29,956 contracts and force layoffs of 2256 01:40:29,956 --> 01:40:30,623 union workers. 2257 01:40:30,623 --> 01:40:31,357 Each phase of the new study 2258 01:40:31,357 --> 01:40:34,357 continues to diminish or ignore 2259 01:40:35,428 --> 01:40:36,128 addressing worker protections 2260 01:40:36,128 --> 01:40:36,862 and safety the fire risk and 2261 01:40:36,862 --> 01:40:39,862 liability the city would assume 2262 01:40:41,167 --> 01:40:41,801 under urban exploitation and 2263 01:40:41,801 --> 01:40:42,501 the occurred that the city 2264 01:40:42,501 --> 01:40:43,102 would force to be take on with 2265 01:40:43,102 --> 01:40:43,669 this effort High voltage 2266 01:40:43,669 --> 01:40:45,669 infrastructure demand 2267 01:40:47,507 --> 01:40:48,740 significant investment and 2268 01:40:48,740 --> 01:40:48,808 the operating continue 2269 01:40:48,808 --> 01:40:49,275 The operating costs continue to 2270 01:40:49,275 --> 01:40:49,742 be significantly 2271 01:40:49,742 --> 01:40:51,742 underestimated. 2272 01:40:53,312 --> 01:40:53,980 There's no guarantee that 2273 01:40:53,980 --> 01:40:54,647 the infrastructure the city 2274 01:40:54,647 --> 01:40:55,381 purchases will be maintained 2275 01:40:55,381 --> 01:40:58,381 sufficiently To keep my members 2276 01:40:59,418 --> 01:41:00,860 safe I was in these chambers 2277 01:41:00,860 --> 01:41:00,686 just weeks ago when you were 2278 01:41:00,686 --> 01:41:02,686 debating closing public 2279 01:41:03,989 --> 01:41:04,657 bathrooms in order to close a 2280 01:41:04,657 --> 01:41:05,358 $175 million budget deficit. 2281 01:41:05,358 --> 01:41:08,958 What happens when you have a 2282 01:41:09,962 --> 01:41:10,463 budget deficit but now you run 2283 01:41:10,463 --> 01:41:11,960 the power company. 2284 01:41:11,960 --> 01:41:11,497 You can't just shut down a 2285 01:41:11,497 --> 01:41:12,198 substation. 2286 01:41:12,198 --> 01:41:15,798 You can't just turn the lights 2287 01:41:16,680 --> 01:41:16,736 off to save money or limit 2288 01:41:16,736 --> 01:41:17,437 the hours that you provide. 2289 01:41:17,437 --> 01:41:18,137 Electric service like the grid 2290 01:41:18,137 --> 01:41:21,737 is a public library You can't 2291 01:41:22,542 --> 01:41:23,276 balance the budget by robbing 2292 01:41:23,276 --> 01:41:23,809 resources from grid maintenance 2293 01:41:23,809 --> 01:41:24,510 or pole replacement. 2294 01:41:24,510 --> 01:41:28,147 If you do that you might have 2295 01:41:28,147 --> 01:41:28,514 mass outages, blackouts and 2296 01:41:28,514 --> 01:41:29,115 wildfires. 2297 01:41:29,115 --> 01:41:29,815 So where's the real cost 2298 01:41:29,815 --> 01:41:30,249 associated with the fire risk 2299 01:41:30,249 --> 01:41:32,249 and liability? 2300 01:41:33,720 --> 01:41:34,387 Where's the real numbers on 2301 01:41:34,387 --> 01:41:35,121 the billions dollars of debt 2302 01:41:35,121 --> 01:41:38,721 the city and our taxpayers will 2303 01:41:39,626 --> 01:41:40,426 carry for decades? 2304 01:41:40,426 --> 01:41:41,940 Each phase of the Nugent study 2305 01:41:41,940 --> 01:41:41,728 has not provided you or our 2306 01:41:41,728 --> 01:41:44,128 taxpayers with an accurate 2307 01:41:45,331 --> 01:41:46,320 picture of that risk of 2308 01:41:46,320 --> 01:41:46,666 the cost of the liability and 2309 01:41:46,666 --> 01:41:50,266 the risk the city will be 2310 01:41:51,604 --> 01:41:54,400 undertaking to municipal lies. 2311 01:41:56,609 --> 01:41:57,210 It's a lot It's $9 billion, $9 2312 01:41:57,210 --> 01:41:57,911 billion at a time where 2313 01:41:57,911 --> 01:41:58,511 the city is laying off workers 2314 01:41:58,511 --> 01:42:01,511 when the city is closing 2315 01:42:02,249 --> 01:42:02,916 bathrooms, the city is 2316 01:42:02,916 --> 01:42:03,583 defunding the bomb squad and 2317 01:42:03,583 --> 01:42:04,217 relying on donations to keep 2318 01:42:04,217 --> 01:42:06,617 your arts programs alive. 2319 01:42:07,887 --> 01:42:08,588 You just cut $7 million from 2320 01:42:08,588 --> 01:42:11,588 your own Climate Action Fund. 2321 01:42:12,826 --> 01:42:13,493 You don't have the money You 2322 01:42:13,493 --> 01:42:14,194 don't have the resources and 2323 01:42:14,194 --> 01:42:14,961 you don't have the expertise. 2324 01:42:14,961 --> 01:42:18,561 So we're asking you to please 2325 01:42:19,399 --> 01:42:20,266 not do this. 2326 01:42:20,266 --> 01:42:20,867 But I will end with this If 2327 01:42:20,867 --> 01:42:23,267 city genie doesn't offer 2328 01:42:25,572 --> 01:42:26,239 immediate rate relief to our 2329 01:42:26,239 --> 01:42:29,239 communities most at need, we 2330 01:42:31,277 --> 01:42:31,911 will be back here having 2331 01:42:31,911 --> 01:42:32,612 the same presentation with 2332 01:42:32,612 --> 01:42:33,146 the same advocacy and the same 2333 01:42:33,146 --> 01:42:35,146 level of frustration 2334 01:42:37,384 --> 01:42:38,840 The utility affordability 2335 01:42:38,840 --> 01:42:38,785 crisis isn't going away until 2336 01:42:38,785 --> 01:42:42,385 we sit down with honesty and 2337 01:42:43,189 --> 01:42:43,723 empathy for our communities 2338 01:42:43,723 --> 01:42:44,424 that are struggling. 2339 01:42:44,424 --> 01:42:45,125 I fear the cycle will continue 2340 01:42:45,125 --> 01:42:47,994 and the ibew stands ready and 2341 01:42:47,994 --> 01:42:48,428 willing to have that 2342 01:42:48,428 --> 01:42:50,428 conversation. 2343 01:42:55,202 --> 01:42:55,969 >> Thank you very much. 2344 01:42:55,969 --> 01:42:56,837 Thank you and Speaker lady And 2345 01:42:56,837 --> 01:43:00,437 if you think you could approach 2346 01:43:00,907 --> 01:43:01,608 the microphone, you have 2347 01:43:01,608 --> 01:43:01,942 several speakers seating time 2348 01:43:01,942 --> 01:43:03,942 to you. 2349 01:43:06,246 --> 01:43:06,947 Matthew Pendergrast, thank you 2350 01:43:06,947 --> 01:43:09,947 Randall and Driver thank you. 2351 01:43:19,250 --> 01:43:19,328 As an uncommon husband no, no. 2352 01:43:19,328 --> 01:43:20,193 Okay. 2353 01:43:20,193 --> 01:43:20,627 You will have a total of three 2354 01:43:20,627 --> 01:43:22,627 minutes then. 2355 01:43:24,363 --> 01:43:25,980 Okay. 2356 01:43:25,980 --> 01:43:25,365 Thank you so much for having 2357 01:43:25,365 --> 01:43:25,932 me. 2358 01:43:25,932 --> 01:43:26,566 I'm DR. Adrian Cusick. 2359 01:43:26,566 --> 01:43:29,566 I live in District three. 2360 01:43:30,404 --> 01:43:31,304 I served in the us Peace Corps 2361 01:43:31,304 --> 01:43:31,905 and I'm a member of cfa which 2362 01:43:31,905 --> 01:43:32,305 is a California faculty 2363 01:43:32,305 --> 01:43:33,600 association. 2364 01:43:33,600 --> 01:43:35,406 I teach environmental science 2365 01:43:36,576 --> 01:43:37,244 and sustainability sdsu My 2366 01:43:37,244 --> 01:43:37,944 students are bright, they're 2367 01:43:37,944 --> 01:43:39,944 motivated, they're innovative. 2368 01:43:42,182 --> 01:43:42,649 They get out there and gain 2369 01:43:42,649 --> 01:43:43,350 work experience. 2370 01:43:43,350 --> 01:43:44,510 Unfortunately they're learning 2371 01:43:44,510 --> 01:43:47,510 about the injustices that are 2372 01:43:48,522 --> 01:43:48,989 deeply embedded in our systems 2373 01:43:48,989 --> 01:43:49,690 and structures. 2374 01:43:49,690 --> 01:43:50,257 The sad reality that a utility 2375 01:43:50,257 --> 01:43:52,657 company is a monopoly 2376 01:43:55,195 --> 01:43:55,929 extracting wealth from 2377 01:43:55,929 --> 01:43:56,596 the community to transfer it to 2378 01:43:56,596 --> 01:43:59,596 its already wealthy CEOs and 2379 01:44:01,340 --> 01:44:01,635 shareholders is an example of 2380 01:44:01,635 --> 01:44:02,269 environmental and social 2381 01:44:02,269 --> 01:44:04,669 injustices that we've been 2382 01:44:06,673 --> 01:44:07,274 forced to live with This system 2383 01:44:07,274 --> 01:44:07,975 under the investor owned 2384 01:44:07,975 --> 01:44:08,675 utility makes life harder for 2385 01:44:08,675 --> 01:44:12,245 the average than Diegan and it 2386 01:44:12,245 --> 01:44:12,612 stifles innovation and 2387 01:44:12,612 --> 01:44:13,247 progress. 2388 01:44:13,247 --> 01:44:16,247 But there's a better way. 2389 01:44:17,184 --> 01:44:17,918 The Phase two public power 2390 01:44:17,918 --> 01:44:18,619 study clearly demonstrates that 2391 01:44:18,619 --> 01:44:19,319 it's financially, technically 2392 01:44:19,319 --> 01:44:21,719 and operationally feasible to 2393 01:44:23,457 --> 01:44:24,580 transition to a nonprofit 2394 01:44:24,580 --> 01:44:24,758 publicly owned utility. 2395 01:44:24,758 --> 01:44:27,758 The study focused on different 2396 01:44:29,530 --> 01:44:30,960 variations on one specific 2397 01:44:30,960 --> 01:44:30,464 scenario for acquiring 2398 01:44:30,464 --> 01:44:31,131 the grid. 2399 01:44:31,131 --> 01:44:33,531 It demonstrated that public 2400 01:44:35,369 --> 01:44:36,103 power will work in San Diego. 2401 01:44:36,103 --> 01:44:36,804 And it also demonstrated that 2402 01:44:36,804 --> 01:44:37,404 public power will be good for 2403 01:44:37,404 --> 01:44:39,804 San Diegans not only 2404 01:44:42,242 --> 01:44:42,976 financially but public power 2405 01:44:42,976 --> 01:44:43,677 would turn decision making over 2406 01:44:43,677 --> 01:44:44,311 to us the people who live here 2407 01:44:44,311 --> 01:44:47,311 and are impacted by local 2408 01:44:47,481 --> 01:44:48,115 energy decisions not 2409 01:44:48,115 --> 01:44:48,715 shareholders who probably 2410 01:44:48,715 --> 01:44:49,416 couldn't care less about 2411 01:44:49,416 --> 01:44:52,416 the struggles of everyday San 2412 01:44:54,188 --> 01:44:54,888 Diego's public power have been 2413 01:44:54,888 --> 01:44:55,522 successful in other cities So 2414 01:44:55,522 --> 01:44:59,122 it makes sense It would be 2415 01:44:59,727 --> 01:45:00,427 successful here where we pay 2416 01:45:00,427 --> 01:45:01,610 the highest electricity rates 2417 01:45:01,610 --> 01:45:01,395 in the continental United 2418 01:45:01,395 --> 01:45:02,129 States. 2419 01:45:02,129 --> 01:45:05,129 It's important to remember that 2420 01:45:05,600 --> 01:45:06,334 the phase two study is a 2421 01:45:06,334 --> 01:45:07,340 baseline and it shows that it's 2422 01:45:07,340 --> 01:45:10,634 possible We don't need to have 2423 01:45:11,638 --> 01:45:12,239 every single technical detail 2424 01:45:12,239 --> 01:45:13,173 worked out right now. 2425 01:45:13,173 --> 01:45:13,807 But what we do need to do is 2426 01:45:13,807 --> 01:45:16,807 commit to making action to 2427 01:45:17,444 --> 01:45:18,212 making it happen. 2428 01:45:18,212 --> 01:45:18,913 As local owners of the grid we 2429 01:45:18,913 --> 01:45:19,246 can determine what works best 2430 01:45:19,246 --> 01:45:21,246 for us. 2431 01:45:23,784 --> 01:45:24,518 We can ensure that Labor 2432 01:45:24,518 --> 01:45:25,152 remains whole and has agreement 2433 01:45:25,152 --> 01:45:25,886 agreements to ensure that 2434 01:45:25,886 --> 01:45:28,886 people operating the system are 2435 01:45:29,757 --> 01:45:30,157 involved in the decisions that 2436 01:45:30,157 --> 01:45:30,791 impact them. 2437 01:45:30,791 --> 01:45:31,492 We can tailor the scale of 2438 01:45:31,492 --> 01:45:34,492 the infrastructure and we can 2439 01:45:35,563 --> 01:45:36,630 explore different different 2440 01:45:36,630 --> 01:45:36,797 governance models. 2441 01:45:36,797 --> 01:45:37,531 We can trade the status quo for 2442 01:45:37,531 --> 01:45:40,531 low energy costs and local 2443 01:45:41,769 --> 01:45:42,636 control. 2444 01:45:42,636 --> 01:45:43,400 Imagine what that would do for 2445 01:45:43,400 --> 01:45:43,704 our city. 2446 01:45:43,704 --> 01:45:44,304 Lower energy costs are key to 2447 01:45:44,304 --> 01:45:46,304 economic growth Cutting 2448 01:45:47,441 --> 01:45:48,750 emissions, reducing 2449 01:45:48,750 --> 01:45:48,476 inequalities and spurring 2450 01:45:48,476 --> 01:45:49,143 innovation. 2451 01:45:49,143 --> 01:45:52,743 So once we're out from under 2452 01:45:54,148 --> 01:45:54,682 the thumb of Sempra we could be 2453 01:45:54,682 --> 01:45:55,820 a model of community 2454 01:45:55,820 --> 01:45:55,750 resilience. 2455 01:45:55,750 --> 01:45:58,750 We could have virtual power 2456 01:45:59,553 --> 01:46:00,288 plants bi directional charging, 2457 01:46:00,288 --> 01:46:00,988 microgrids, agile and proactive 2458 01:46:00,988 --> 01:46:03,388 technology to mitigate growing 2459 01:46:05,660 --> 01:46:06,394 climate risks. 2460 01:46:06,394 --> 01:46:07,610 We could decide if and where 2461 01:46:07,610 --> 01:46:10,610 data centers enter our city. 2462 01:46:11,966 --> 01:46:12,733 Ultimately we have the power 2463 01:46:12,733 --> 01:46:13,201 now to commit to transitioning 2464 01:46:13,201 --> 01:46:13,935 to public power. 2465 01:46:13,935 --> 01:46:17,605 And when we do, every aspect of 2466 01:46:17,605 --> 01:46:18,105 that transition will be under 2467 01:46:18,105 --> 01:46:18,806 our local control. 2468 01:46:18,806 --> 01:46:22,406 And like my students, we have 2469 01:46:23,611 --> 01:46:24,278 the imagination, the creativity 2470 01:46:24,278 --> 01:46:24,946 to create something really 2471 01:46:24,946 --> 01:46:25,213 wonderful that can serve us 2472 01:46:25,213 --> 01:46:25,947 all. 2473 01:46:25,947 --> 01:46:28,947 >> Thank you for your comments. 2474 01:46:29,817 --> 01:46:30,585 That does conclude your time. 2475 01:46:30,585 --> 01:46:31,119 Next speaker is Kevin Machado 2476 01:46:31,119 --> 01:46:31,585 or Kevin approaches 2477 01:46:31,585 --> 01:46:33,585 the microphone. 2478 01:46:35,957 --> 01:46:39,557 I would ask Will Smith, Kevin 2479 01:46:43,765 --> 01:46:44,265 Zavala Rachel Kiss Lane Range 2480 01:46:44,265 --> 01:46:46,265 shot Sharon. 2481 01:46:49,604 --> 01:46:50,380 Sorry if I said that in part 2482 01:46:50,380 --> 01:46:50,737 Troutman too. 2483 01:46:50,737 --> 01:46:51,272 Please come to the front row. 2484 01:46:51,272 --> 01:46:53,272 Kevin please begin. 2485 01:46:55,242 --> 01:46:55,910 Hello, my name is Kevin and I'm 2486 01:46:55,910 --> 01:46:56,577 a worker here in San Diego. 2487 01:46:56,577 --> 01:46:59,577 Working family The San Diego 2488 01:47:00,810 --> 01:47:00,782 are tired of the cost of living 2489 01:47:00,782 --> 01:47:01,449 going up as the union has 2490 01:47:01,449 --> 01:47:02,116 consistently raised rates in 2491 01:47:02,116 --> 01:47:05,716 the past decade as the union 2492 01:47:06,200 --> 01:47:06,387 has raised rates on average 7% 2493 01:47:06,387 --> 01:47:07,880 per year. 2494 01:47:07,880 --> 01:47:07,822 They're taking $1 billion from 2495 01:47:07,822 --> 01:47:11,422 us every year and doing nothing 2496 01:47:11,960 --> 01:47:12,827 for our communities. 2497 01:47:12,827 --> 01:47:13,527 That money could go to San 2498 01:47:13,527 --> 01:47:14,262 Diego schools and the library 2499 01:47:14,262 --> 01:47:17,862 San Diego workers and San Diego 2500 01:47:17,899 --> 01:47:18,633 infrastructure as the union 2501 01:47:18,633 --> 01:47:19,267 wants more more money for their 2502 01:47:19,267 --> 01:47:20,100 owners And Wall Street at 2503 01:47:20,100 --> 01:47:23,100 the city's profits this quarter 2504 01:47:23,571 --> 01:47:24,238 is $290 million and they're 2505 01:47:24,238 --> 01:47:24,739 likely to break a million in 2506 01:47:24,739 --> 01:47:25,406 profit this year. 2507 01:47:25,406 --> 01:47:28,406 And regardless of that, they 2508 01:47:29,811 --> 01:47:30,512 still are proposing another 2509 01:47:30,512 --> 01:47:31,280 $280 million more every year. 2510 01:47:31,280 --> 01:47:34,880 If we don't act now, another 2511 01:47:36,840 --> 01:47:36,785 decade will pass and San Diego 2512 01:47:36,785 --> 01:47:37,318 will still be struggling with 2513 01:47:37,318 --> 01:47:37,952 the cost of living. 2514 01:47:37,952 --> 01:47:40,952 We have the opportunity to 2515 01:47:41,122 --> 01:47:41,823 change that now la Power will 2516 01:47:41,823 --> 01:47:42,290 lower the cost of electricity 2517 01:47:42,290 --> 01:47:43,240 for generations. 2518 01:47:43,240 --> 01:47:43,425 The feasibility study will will 2519 01:47:43,425 --> 01:47:45,425 save money. 2520 01:47:48,330 --> 01:47:48,997 It will work here. 2521 01:47:48,997 --> 01:47:49,497 It's worked everywhere else 2522 01:47:49,497 --> 01:47:50,980 They've tried it. 2523 01:47:50,980 --> 01:47:50,832 The minimum the minimum 2524 01:47:50,832 --> 01:47:53,832 position in Sacramento has been 2525 01:47:54,269 --> 01:47:55,300 complete success. 2526 01:47:55,300 --> 01:47:55,704 They pay half of what we're 2527 01:47:55,704 --> 01:47:56,371 paying the council to be brave 2528 01:47:56,371 --> 01:47:56,737 and act And I thank you for 2529 01:47:56,737 --> 01:47:58,273 your time. 2530 01:47:58,273 --> 01:48:00,273 Thank you. 2531 01:48:04,479 --> 01:48:04,979 Well Smith you do have indoor 2532 01:48:04,979 --> 01:48:05,647 seating your time. 2533 01:48:05,647 --> 01:48:06,810 Andrew, could you raise your 2534 01:48:06,810 --> 01:48:06,447 hand, please? 2535 01:48:06,447 --> 01:48:07,480 Thank you. 2536 01:48:07,480 --> 01:48:09,448 You'll have two minutes. 2537 01:48:10,510 --> 01:48:11,860 Good afternoon, Council. 2538 01:48:11,860 --> 01:48:11,519 My name is Will and I live in 2539 01:48:11,519 --> 01:48:12,220 District five. 2540 01:48:12,220 --> 01:48:15,690 Over the last few years I have 2541 01:48:15,690 --> 01:48:16,240 moved around San Diego several 2542 01:48:16,240 --> 01:48:16,691 times. 2543 01:48:16,691 --> 01:48:17,358 Every neighborhood has been 2544 01:48:17,358 --> 01:48:18,260 different but in each one of 2545 01:48:18,260 --> 01:48:21,260 them life keeps getting more 2546 01:48:21,329 --> 01:48:22,970 expensive. 2547 01:48:22,970 --> 01:48:22,731 Like many people in my 2548 01:48:22,731 --> 01:48:23,331 generation I already worry 2549 01:48:23,331 --> 01:48:26,331 about the cost of rent, 2550 01:48:27,602 --> 01:48:28,503 groceries, gas and health care. 2551 01:48:28,503 --> 01:48:29,360 But when bills used to go up no 2552 01:48:29,360 --> 01:48:29,438 matter what I do. 2553 01:48:29,438 --> 01:48:31,438 Electricity. 2554 01:48:33,208 --> 01:48:33,875 Recently I was fortunate enough 2555 01:48:33,875 --> 01:48:34,209 to move somewhere with solar 2556 01:48:34,209 --> 01:48:34,910 panels. 2557 01:48:34,910 --> 01:48:35,310 I thought I would finally get 2558 01:48:35,310 --> 01:48:37,310 some relief. 2559 01:48:39,714 --> 01:48:40,382 Instead I watched as Jeannie 2560 01:48:40,382 --> 01:48:40,982 continued to make decisions 2561 01:48:40,982 --> 01:48:41,683 that made it harder for 2562 01:48:41,683 --> 01:48:44,152 ordinary people to lower their 2563 01:48:44,152 --> 01:48:45,200 bills. 2564 01:48:45,200 --> 01:48:45,687 It feels like no matter what we 2565 01:48:45,687 --> 01:48:49,287 do the system is designed so 2566 01:48:49,758 --> 01:48:50,358 that the shareholders win. 2567 01:48:50,358 --> 01:48:50,726 And working families pay 2568 01:48:50,726 --> 01:48:51,459 the price. 2569 01:48:51,459 --> 01:48:52,940 We don't want to keep having to 2570 01:48:52,940 --> 01:48:54,494 choose between keeping our 2571 01:48:55,564 --> 01:48:55,931 lights on and putting food on 2572 01:48:55,931 --> 01:48:56,665 the table. 2573 01:48:56,665 --> 01:48:57,265 Beyond affordability, I've also 2574 01:48:57,265 --> 01:48:59,665 seen the consequences of 2575 01:49:01,303 --> 01:49:01,836 failure to properly maintain 2576 01:49:01,836 --> 01:49:02,537 its infrastructure. 2577 01:49:02,537 --> 01:49:03,205 Wildfires fueled by neglected 2578 01:49:03,205 --> 01:49:05,205 infrastructure threaten our 2579 01:49:06,608 --> 01:49:07,275 communities, our environment 2580 01:49:07,275 --> 01:49:07,709 and the places that make San 2581 01:49:07,709 --> 01:49:08,443 Diego special. 2582 01:49:08,443 --> 01:49:11,613 I want future generations to be 2583 01:49:11,613 --> 01:49:12,247 able to enjoy our parks, open 2584 01:49:12,247 --> 01:49:12,981 spaces and beaches without 2585 01:49:12,981 --> 01:49:15,981 being under the constant threat 2586 01:49:17,919 --> 01:49:18,821 of very preventable disasters. 2587 01:49:18,821 --> 01:49:19,421 That is why I am here today in 2588 01:49:19,421 --> 01:49:20,122 support of public power. 2589 01:49:20,122 --> 01:49:23,910 I want a utility that answers 2590 01:49:23,910 --> 01:49:23,458 to the people of San Diego not 2591 01:49:23,458 --> 01:49:24,590 investors. 2592 01:49:24,590 --> 01:49:24,693 I want money we spend on 2593 01:49:24,693 --> 01:49:25,427 electricity to stay in our 2594 01:49:25,427 --> 01:49:28,427 community and be invested in 2595 01:49:28,764 --> 01:49:29,198 reliability, clean energy and 2596 01:49:29,198 --> 01:49:29,832 affordability. 2597 01:49:29,832 --> 01:49:30,566 Most of all, I want future 2598 01:49:30,566 --> 01:49:33,566 generations of San Diego owners 2599 01:49:34,136 --> 01:49:34,736 to be able to afford to live in 2600 01:49:34,736 --> 01:49:35,404 the city they call home. 2601 01:49:35,404 --> 01:49:37,804 Council These issues affect 2602 01:49:39,474 --> 01:49:39,875 real people, real families and 2603 01:49:39,875 --> 01:49:40,576 real voters. 2604 01:49:40,576 --> 01:49:41,276 Today you have a choice Stand 2605 01:49:41,276 --> 01:49:44,276 with San Diego and struggling 2606 01:49:45,800 --> 01:49:45,781 to afford an essential service 2607 01:49:45,781 --> 01:49:46,482 or stand with a monopoly that 2608 01:49:46,482 --> 01:49:49,482 continues to raise rates while 2609 01:49:50,519 --> 01:49:51,153 posting record profits off 2610 01:49:51,153 --> 01:49:51,520 the backs of working class 2611 01:49:51,520 --> 01:49:52,187 families. 2612 01:49:52,187 --> 01:49:52,755 The voters of the city will 2613 01:49:52,755 --> 01:49:54,755 remember that choice. 2614 01:49:56,258 --> 01:49:56,725 I urge you to move forward with 2615 01:49:56,725 --> 01:49:57,159 sd Public Power. 2616 01:49:57,159 --> 01:49:57,559 >> Thank you. 2617 01:49:57,559 --> 01:49:59,559 Thank you. 2618 01:50:01,396 --> 01:50:02,264 Kevin Zavala. 2619 01:50:02,264 --> 01:50:05,864 >> You have time ceded to you 2620 01:50:06,602 --> 01:50:07,202 by Robert Freedman Could you 2621 01:50:07,202 --> 01:50:07,635 raise your hand please? 2622 01:50:07,635 --> 01:50:08,237 >> Thank you. 2623 01:50:08,237 --> 01:50:08,704 You'll have two minutes. 2624 01:50:08,704 --> 01:50:10,704 Good afternoon. 2625 01:50:11,575 --> 01:50:12,241 My name is Kevin Zavala, Marine 2626 01:50:12,241 --> 01:50:12,741 Corps veteran and a District 2627 01:50:12,741 --> 01:50:14,741 four constituent. 2628 01:50:16,912 --> 01:50:17,613 Over the last decade, genius 2629 01:50:17,613 --> 01:50:18,280 driven electricity rates up by 2630 01:50:18,280 --> 01:50:20,680 more than 80% far outpacing 2631 01:50:21,250 --> 01:50:21,917 inflation and leaving San Diego 2632 01:50:21,917 --> 01:50:22,584 residents with the same with 2633 01:50:22,584 --> 01:50:23,118 some of the highest utility 2634 01:50:23,118 --> 01:50:25,518 bills in the nation. 2635 01:50:26,322 --> 01:50:26,922 We're told these increases are 2636 01:50:26,922 --> 01:50:27,290 unavoidable but what are 2637 01:50:27,290 --> 01:50:29,290 the facts? 2638 01:50:31,694 --> 01:50:32,428 After the devastating 2007 San 2639 01:50:32,428 --> 01:50:33,620 Diego wildfires, the us Supreme 2640 01:50:33,620 --> 01:50:35,640 Court ruled that the genie 2641 01:50:35,640 --> 01:50:35,764 could not pass $379 million in 2642 01:50:35,764 --> 01:50:36,331 fire related litigation costs 2643 01:50:36,331 --> 01:50:38,331 to ratepayers because 2644 01:50:40,202 --> 01:50:40,903 the damage was caused by 2645 01:50:40,903 --> 01:50:41,270 the utility's poor maintained 2646 01:50:41,270 --> 01:50:41,937 equipment. 2647 01:50:41,937 --> 01:50:43,937 Shareholders, not customers 2648 01:50:44,573 --> 01:50:44,874 were required to bear those 2649 01:50:44,874 --> 01:50:45,574 costs. 2650 01:50:45,574 --> 01:50:46,275 However, Genie later exploited 2651 01:50:46,275 --> 01:50:49,275 a legal loophole while barred 2652 01:50:50,120 --> 01:50:50,446 from charging customers for 2653 01:50:50,446 --> 01:50:51,460 past damages. 2654 01:50:51,460 --> 01:50:51,714 The company successfully 2655 01:50:51,714 --> 01:50:54,114 shifted 100% of its ongoing 2656 01:50:55,284 --> 01:50:55,984 wildfire mitigation and 2657 01:50:55,984 --> 01:50:56,452 infrastructure hardening costs 2658 01:50:56,452 --> 01:50:57,860 onto ratepayers. 2659 01:50:57,860 --> 01:51:00,860 As a result, customers are 2660 01:51:00,456 --> 01:51:01,123 paying billions to repair and 2661 01:51:01,123 --> 01:51:01,757 upgrade infrastructure that 2662 01:51:01,757 --> 01:51:02,580 the utility neglected for 2663 01:51:02,580 --> 01:51:04,580 years. 2664 01:51:05,193 --> 01:51:05,928 This is the consequence of a 2665 01:51:05,928 --> 01:51:06,495 private monopoly accountable to 2666 01:51:06,495 --> 01:51:07,630 investors rather than 2667 01:51:07,630 --> 01:51:09,463 the public it serves. 2668 01:51:10,833 --> 01:51:11,567 In response, public power San 2669 01:51:11,567 --> 01:51:12,234 Diego is working to establish a 2670 01:51:12,234 --> 01:51:14,634 publicly owned utility that 2671 01:51:15,905 --> 01:51:16,639 will prioritize affordability, 2672 01:51:16,639 --> 01:51:17,306 transparency and local control. 2673 01:51:17,306 --> 01:51:20,109 Public records show sgi has 2674 01:51:20,109 --> 01:51:20,810 spent millions on lobbying and 2675 01:51:20,810 --> 01:51:21,477 political influence efforts to 2676 01:51:21,477 --> 01:51:22,111 block public power proposals 2677 01:51:22,111 --> 01:51:24,511 and protect its monopoly. 2678 01:51:25,948 --> 01:51:26,616 The choice is clear continue 2679 01:51:26,616 --> 01:51:28,717 accepting more rate hikes or 2680 01:51:28,717 --> 01:51:29,385 support a public power future 2681 01:51:29,385 --> 01:51:32,385 that puts the people first. 2682 01:51:34,924 --> 01:51:35,992 >> Thank you Rachel Kiss. 2683 01:51:35,992 --> 01:51:38,895 You have time ceded to you by 2684 01:51:38,895 --> 01:51:39,395 Dale Holmberg. 2685 01:51:39,395 --> 01:51:39,862 Thank you. 2686 01:51:39,862 --> 01:51:40,463 Good afternoon. 2687 01:51:40,463 --> 01:51:43,463 My name is Rachel Kiss. 2688 01:51:43,733 --> 01:51:44,467 I'm a San Diego resident, a 2689 01:51:44,467 --> 01:51:45,680 mother of three young children, 2690 01:51:45,680 --> 01:51:48,680 a homeowner and a small 2691 01:51:48,337 --> 01:51:49,105 business owner. 2692 01:51:49,105 --> 01:51:49,772 Like many families, we've made 2693 01:51:49,772 --> 01:51:50,440 sacrifices over the last few 2694 01:51:50,440 --> 01:51:53,609 years as the cost of living 2695 01:51:53,609 --> 01:51:54,243 continues to rise. 2696 01:51:54,243 --> 01:51:54,744 We budget carefully. 2697 01:51:54,744 --> 01:51:56,744 We compare prices. 2698 01:51:57,780 --> 01:51:58,448 We make difficult decisions 2699 01:51:58,448 --> 01:51:59,820 about where our money goes. 2700 01:51:59,820 --> 01:51:59,782 What's frustrating is that 2701 01:51:59,782 --> 01:52:02,782 while families are expected to 2702 01:52:03,319 --> 01:52:04,200 tighten their belts as Jeannie 2703 01:52:04,200 --> 01:52:07,200 continues to come back asking 2704 01:52:07,890 --> 01:52:08,558 for more, how much is enough? 2705 01:52:08,558 --> 01:52:09,580 Electricity is not a luxury. 2706 01:52:09,580 --> 01:52:11,580 It's a necessity. 2707 01:52:12,795 --> 01:52:13,363 Families need to keep food cold 2708 01:52:13,363 --> 01:52:13,763 home safe and children 2709 01:52:13,763 --> 01:52:15,763 comfortable. 2710 01:52:16,933 --> 01:52:17,267 Small businesses need to 2711 01:52:17,267 --> 01:52:17,867 survive. 2712 01:52:17,867 --> 01:52:18,534 Yet we're paying some of 2713 01:52:18,534 --> 01:52:21,437 the highest energy rates in 2714 01:52:21,437 --> 01:52:22,138 the country with especially 2715 01:52:22,138 --> 01:52:22,839 concerning is that more and 2716 01:52:22,839 --> 01:52:23,506 more of these costs are being 2717 01:52:23,506 --> 01:52:25,906 shifted into fixed charges. 2718 01:52:27,209 --> 01:52:27,911 Whether someone lives in a 2719 01:52:27,911 --> 01:52:31,140 small apartment and edu or a 2720 01:52:31,140 --> 01:52:31,715 large home whether they can 2721 01:52:31,715 --> 01:52:32,315 serve energy or not, they're 2722 01:52:32,315 --> 01:52:33,216 being asked to pay more. 2723 01:52:33,216 --> 01:52:36,252 Families are being told to use 2724 01:52:36,252 --> 01:52:36,920 less energy while 2725 01:52:36,920 --> 01:52:37,520 simultaneously being charged 2726 01:52:37,520 --> 01:52:37,854 speeds that they cannot 2727 01:52:37,854 --> 01:52:39,854 control. 2728 01:52:40,423 --> 01:52:41,157 That undermines both 2729 01:52:41,157 --> 01:52:41,791 affordability and conservation. 2730 01:52:41,791 --> 01:52:44,791 Today isn't just about a 2731 01:52:46,229 --> 01:52:46,863 feasibility study. 2732 01:52:46,863 --> 01:52:47,530 It's about accountability. 2733 01:52:47,530 --> 01:52:48,231 It's about exploring whether 2734 01:52:48,231 --> 01:52:51,000 there's a better path forward 2735 01:52:51,000 --> 01:52:51,334 that puts residents before 2736 01:52:51,334 --> 01:52:52,102 profits. 2737 01:52:52,102 --> 01:52:52,502 I'm not here because I have all 2738 01:52:52,502 --> 01:52:54,502 the answers. 2739 01:52:55,338 --> 01:52:56,710 I'm here because I believe 2740 01:52:56,710 --> 01:52:56,773 the people of San Diego deserve 2741 01:52:56,773 --> 01:52:57,440 leaders who are willing to ask 2742 01:52:57,440 --> 01:52:59,840 hard questions and seriously 2743 01:53:01,444 --> 01:53:02,212 explore alternatives. 2744 01:53:02,212 --> 01:53:05,448 When sd Jenny asks for another 2745 01:53:05,448 --> 01:53:05,848 increase it's a line item on a 2746 01:53:05,848 --> 01:53:06,516 spreadsheet. 2747 01:53:06,516 --> 01:53:08,916 For families it's groceries, 2748 01:53:10,520 --> 01:53:10,954 kids activities, savings and a 2749 01:53:10,954 --> 01:53:11,688 peace of mind. 2750 01:53:11,688 --> 01:53:12,122 Those costs are real and we're 2751 01:53:12,122 --> 01:53:14,122 feeling them. 2752 01:53:15,658 --> 01:53:16,293 Please seriously evaluate every 2753 01:53:16,293 --> 01:53:17,270 option available to bring 2754 01:53:17,270 --> 01:53:19,270 affordability, transparency and 2755 01:53:20,363 --> 01:53:20,797 accountability back to our 2756 01:53:20,797 --> 01:53:21,531 energy system. 2757 01:53:21,531 --> 01:53:22,265 And please remember that behind 2758 01:53:22,265 --> 01:53:25,602 every rate increase is a family 2759 01:53:25,602 --> 01:53:25,902 trying to make their budget 2760 01:53:25,902 --> 01:53:26,503 work. 2761 01:53:26,503 --> 01:53:26,870 Thank you for your time. 2762 01:53:26,870 --> 01:53:28,870 Thank you. 2763 01:53:30,340 --> 01:53:31,408 Lane Sharman. 2764 01:53:31,408 --> 01:53:35,608 When you have time ceded to you 2765 01:53:35,645 --> 01:53:36,313 by Katherine Harrison and 2766 01:53:36,313 --> 01:53:36,680 Katherine, raise your hand. 2767 01:53:36,680 --> 01:53:38,680 Thank you. 2768 01:53:43,386 --> 01:53:44,540 You'll have two minutes. 2769 01:53:44,540 --> 01:53:44,654 Good afternoon, counsel. 2770 01:53:44,654 --> 01:53:47,654 My name is Lane Sharman. 2771 01:53:47,791 --> 01:53:48,391 I'm a fifth generation 2772 01:53:48,391 --> 01:53:50,791 Californian and I'm also 2773 01:53:52,496 --> 01:53:53,230 the proud founder and initiator 2774 01:53:53,230 --> 01:53:53,897 of community choice aggregation 2775 01:53:53,897 --> 01:53:57,167 in San Diego along with Bill 2776 01:53:57,167 --> 01:53:58,350 Powers. 2777 01:53:58,350 --> 01:53:58,502 We have public power in San 2778 01:53:58,502 --> 01:54:00,502 Diego, don't we? 2779 01:54:02,706 --> 01:54:03,407 We've had it since the Smart 2780 01:54:03,407 --> 01:54:06,407 Energy Alliance was founded by 2781 01:54:07,100 --> 01:54:07,811 Lisa hepner, your colleague. 2782 01:54:07,811 --> 01:54:11,411 She did that because it was 2783 01:54:11,714 --> 01:54:12,150 good for the city of Solana 2784 01:54:12,150 --> 01:54:14,150 Beach. 2785 01:54:16,153 --> 01:54:16,453 That tiny little city up north 2786 01:54:16,453 --> 01:54:17,387 . 2787 01:54:17,387 --> 01:54:18,155 >> And why was it good for it? 2788 01:54:18,155 --> 01:54:21,155 Because San Diego gas and 2789 01:54:21,458 --> 01:54:22,159 electric then as now was taking 2790 01:54:22,159 --> 01:54:24,559 advantage of every single 2791 01:54:26,290 --> 01:54:28,429 ratepayer then and now. 2792 01:54:31,101 --> 01:54:31,801 And I am asking you to please 2793 01:54:31,801 --> 01:54:35,401 look at the big picture here. 2794 01:54:36,573 --> 01:54:37,274 Your legacy, your future, your 2795 01:54:37,274 --> 01:54:40,874 ability to lead and do what's 2796 01:54:41,440 --> 01:54:41,311 good for this city is before 2797 01:54:41,311 --> 01:54:43,311 you. 2798 01:54:45,783 --> 01:54:46,750 And even though there is so 2799 01:54:46,750 --> 01:54:50,350 much opposition, much of it is 2800 01:54:50,620 --> 01:54:51,210 just fear. 2801 01:54:51,210 --> 01:54:53,210 It is. 2802 01:54:55,459 --> 01:54:56,226 And we all fear is the only 2803 01:54:56,226 --> 01:54:56,593 thing that we have to fear 2804 01:54:56,593 --> 01:54:57,561 right now. 2805 01:54:57,561 --> 01:55:00,130 This is going to be great for 2806 01:55:00,130 --> 01:55:00,864 unions. 2807 01:55:00,864 --> 01:55:01,465 It's going to be great for 2808 01:55:01,465 --> 01:55:04,465 the people of San Diego. 2809 01:55:05,602 --> 01:55:05,936 It's going to be good for our 2810 01:55:05,936 --> 01:55:07,936 future. 2811 01:55:09,873 --> 01:55:10,507 So I just beg you to do what 2812 01:55:10,507 --> 01:55:12,907 Lisa Huebner did in 2016. 2813 01:55:15,279 --> 01:55:15,779 She wrote why it was good and 2814 01:55:15,779 --> 01:55:17,779 she published it. 2815 01:55:19,350 --> 01:55:23,550 Each one of you could do that 2816 01:55:23,587 --> 01:55:24,388 and it would be an amazing way 2817 01:55:24,388 --> 01:55:25,256 of clearly stating why this is 2818 01:55:25,256 --> 01:55:28,856 good for San Diego because you 2819 01:55:29,226 --> 01:55:29,927 will work through all of 2820 01:55:29,927 --> 01:55:32,927 the issues including the fears 2821 01:55:34,165 --> 01:55:34,932 and I just want to thank each 2822 01:55:34,932 --> 01:55:38,736 and every one of you who takes 2823 01:55:38,736 --> 01:55:39,470 that action and and dedicates 2824 01:55:39,470 --> 01:55:39,770 themselves to the future of San 2825 01:55:39,770 --> 01:55:41,770 Diego. 2826 01:55:43,474 --> 01:55:43,941 Thank you. 2827 01:55:43,941 --> 01:55:45,941 >> Thank you. 2828 01:55:47,912 --> 01:55:48,412 Next speaker is Pak Troutman. 2829 01:55:48,412 --> 01:55:49,146 While you approach 2830 01:55:49,146 --> 01:55:52,746 the microphone I would ask that 2831 01:55:53,617 --> 01:55:54,518 James Ferguson Diego Sandoval, 2832 01:55:54,518 --> 01:55:57,518 Tyler Andre, Isaiah Glass and 2833 01:55:58,856 --> 01:55:59,390 Allison Miller please approach 2834 01:55:59,390 --> 01:56:01,790 the front row park. 2835 01:56:02,593 --> 01:56:02,994 You have five people sitting 2836 01:56:02,994 --> 01:56:04,994 time to you. 2837 01:56:07,198 --> 01:56:07,598 Angela Haynes Thank you. 2838 01:56:07,598 --> 01:56:09,598 Doris Wynn. 2839 01:56:11,802 --> 01:56:12,403 Thank you. 2840 01:56:12,403 --> 01:56:12,870 Michael Brack Me. 2841 01:56:12,870 --> 01:56:14,870 Thank you. 2842 01:56:17,208 --> 01:56:17,742 Janet o'Dea Thank you. 2843 01:56:17,742 --> 01:56:19,742 Five minutes please. 2844 01:56:20,978 --> 01:56:21,478 Please begin. 2845 01:56:21,478 --> 01:56:22,213 Thank you. 2846 01:56:22,213 --> 01:56:24,613 Good afternoon, Council members 2847 01:56:26,384 --> 01:56:26,884 and Council PRESIDENT My name 2848 01:56:26,884 --> 01:56:27,752 is Park Troutman. 2849 01:56:27,752 --> 01:56:30,421 I am with San Diego 350 Well, I 2850 01:56:30,421 --> 01:56:31,122 want to talk about is San Diego 2851 01:56:31,122 --> 01:56:34,122 Gas Electric general rate case 2852 01:56:35,459 --> 01:56:36,327 that was filed last week. 2853 01:56:36,327 --> 01:56:37,940 The general rate case is a huge 2854 01:56:37,940 --> 01:56:40,940 filing in which investor owned 2855 01:56:40,698 --> 01:56:41,432 utility tries to convince 2856 01:56:41,432 --> 01:56:43,832 the California Public Utilities 2857 01:56:45,636 --> 01:56:46,303 Commission that they should be 2858 01:56:46,303 --> 01:56:49,303 allowed to raise their rates 2859 01:56:49,740 --> 01:56:53,244 over a four year block for 2028 2860 01:56:53,244 --> 01:56:53,945 the first year of the 40 years 2861 01:56:53,945 --> 01:56:56,945 of the rate increase request. 2862 01:56:58,149 --> 01:56:58,749 As the genie asked permission 2863 01:56:58,749 --> 01:57:01,149 to raise the residential 2864 01:57:02,653 --> 01:57:03,621 electricity rates by about $14 2865 01:57:03,621 --> 01:57:06,758 per month which is a little bit 2866 01:57:06,758 --> 01:57:07,458 more than 7% and 2867 01:57:07,458 --> 01:57:11,580 the residential gas rates by a 2868 01:57:11,163 --> 01:57:11,829 little bit less than 850 per 2869 01:57:11,829 --> 01:57:12,197 month which is about a 13% 2870 01:57:12,197 --> 01:57:14,197 increase. 2871 01:57:16,100 --> 01:57:18,500 The California Public Advocacy 2872 01:57:21,372 --> 01:57:21,873 Office tracks acg genies rates 2873 01:57:21,873 --> 01:57:22,573 versus inflation. 2874 01:57:22,573 --> 01:57:24,973 They've done this since 2014. 2875 01:57:26,411 --> 01:57:27,780 The cumulative impact of their 2876 01:57:27,780 --> 01:57:27,745 increase in their rates more 2877 01:57:27,745 --> 01:57:30,745 than inflation is that they 2878 01:57:31,115 --> 01:57:31,482 have increased about triple 2879 01:57:31,482 --> 01:57:33,482 inflation. 2880 01:57:36,621 --> 01:57:37,288 This request for the general 2881 01:57:37,288 --> 01:57:37,922 rate increase or the general 2882 01:57:37,922 --> 01:57:40,922 rate case which is really 2883 01:57:41,192 --> 01:57:41,859 the window into how they're 2884 01:57:41,859 --> 01:57:44,859 thinking about the future is 2885 01:57:45,497 --> 01:57:46,364 actually a little bit more than 2886 01:57:46,364 --> 01:57:48,764 their average request for 2887 01:57:49,567 --> 01:57:53,167 the since 2014 and they make a 2888 01:57:53,438 --> 01:57:56,438 similar request in 2029 and in 2889 01:57:57,308 --> 01:57:57,842 2030 and 2031 they only request 2890 01:57:57,842 --> 01:57:59,842 an increase of 5.5%. 2891 01:58:02,714 --> 01:58:03,415 And keep in mind that these 2892 01:58:03,415 --> 01:58:06,415 rate increases that are in 2893 01:58:07,452 --> 01:58:08,153 the general rate case are 2894 01:58:08,153 --> 01:58:11,153 merely the baseline of what 2895 01:58:11,923 --> 01:58:12,591 they're asking for. 2896 01:58:12,591 --> 01:58:14,591 Increasingly investor owned 2897 01:58:16,394 --> 01:58:16,928 utilities are asking for rate 2898 01:58:16,928 --> 01:58:18,928 increases outside of 2899 01:58:21,700 --> 01:58:22,334 the general rate case so we can 2900 01:58:22,334 --> 01:58:25,334 expect that they will keep 2901 01:58:26,710 --> 01:58:26,671 continue to ask for more And 2902 01:58:26,671 --> 01:58:27,272 these are through their 2903 01:58:27,272 --> 01:58:28,600 balancing in memorandum 2904 01:58:28,600 --> 01:58:30,976 accounts where they spend money 2905 01:58:30,976 --> 01:58:31,710 and then say oh we already 2906 01:58:31,710 --> 01:58:35,310 spent this money, could you get 2907 01:58:35,914 --> 01:58:36,548 reimbursed by paying or 2908 01:58:36,548 --> 01:58:38,948 charging rate payers more? 2909 01:58:40,185 --> 01:58:40,885 So this let the audacity and 2910 01:58:40,885 --> 01:58:43,885 compulsiveness of this sink in 2911 01:58:44,756 --> 01:58:45,457 public anger at investor owned 2912 01:58:45,457 --> 01:58:48,457 utilities has begun to affect 2913 01:58:49,794 --> 01:58:50,562 the outcomes of elections 2914 01:58:50,562 --> 01:58:53,562 nationwide and sd Genie which 2915 01:58:54,533 --> 01:58:59,710 in a J.D. Power study excuse me 2916 01:58:59,710 --> 01:58:59,738 a brand appeal of utilities in 2917 01:58:59,738 --> 01:59:02,974 the Western us that they did 2918 01:59:02,974 --> 01:59:03,608 last year sc Genie was 28 out 2919 01:59:03,608 --> 01:59:06,608 of 30th near the absolute 2920 01:59:07,946 --> 01:59:08,713 bottom because of their high 2921 01:59:08,713 --> 01:59:12,484 rates They are so out of touch 2922 01:59:12,484 --> 01:59:13,285 they are going to continue They 2923 01:59:13,285 --> 01:59:16,885 are continuing to ask for more. 2924 01:59:17,322 --> 01:59:20,322 The general rate case request 2925 01:59:21,493 --> 01:59:22,194 is higher than the 4% that was 2926 01:59:22,194 --> 01:59:25,194 the basis for the consultant's 2927 01:59:26,898 --> 01:59:27,565 study and that was the main 2928 01:59:27,565 --> 01:59:30,565 assumption for the phase two 2929 01:59:30,902 --> 01:59:31,603 feasibility study There are 2930 01:59:31,603 --> 01:59:32,270 consultants are constrained by 2931 01:59:32,270 --> 01:59:35,574 the need to be reasonable as 2932 01:59:35,574 --> 01:59:36,800 the genie apparently does not 2933 01:59:36,800 --> 01:59:38,800 feel the same. 2934 01:59:40,145 --> 01:59:40,846 This means that when we look at 2935 01:59:40,846 --> 01:59:43,846 the impacts of the cumulative 2936 01:59:43,949 --> 01:59:44,649 benefits I believe that Slide 2937 01:59:44,649 --> 01:59:47,490 11 we should be concentrating 2938 01:59:48,353 --> 01:59:51,353 on the highest bar showing 2939 01:59:53,525 --> 01:59:54,126 the highest possible savings 2940 01:59:54,126 --> 01:59:54,459 because that is the most 2941 01:59:54,459 --> 01:59:56,459 likely. 2942 01:59:58,863 --> 01:59:59,665 We know this because Star Genie 2943 01:59:59,665 --> 02:00:03,301 is telling us so they are going 2944 02:00:03,301 --> 02:00:03,902 to continue to ask So what does 2945 02:00:03,902 --> 02:00:06,302 this mean going forward? 2946 02:00:08,974 --> 02:00:09,676 I was we are not going to if we 2947 02:00:09,676 --> 02:00:10,409 know they're going to continue 2948 02:00:10,409 --> 02:00:14,900 to ask for more rate increases. 2949 02:00:14,279 --> 02:00:14,847 We're not going to be having 2950 02:00:14,847 --> 02:00:15,514 the same conversation. 2951 02:00:15,514 --> 02:00:17,649 We're not always coming back 2952 02:00:17,649 --> 02:00:18,350 having the exact encounter. 2953 02:00:18,350 --> 02:00:19,840 It's going to be worse. 2954 02:00:19,840 --> 02:00:22,840 People will be more frustrated, 2955 02:00:22,354 --> 02:00:23,122 Rates are going to be higher. 2956 02:00:23,122 --> 02:00:23,989 We cannot sit our hands We 2957 02:00:23,989 --> 02:00:27,326 cannot say wait to see what 2958 02:00:27,326 --> 02:00:27,893 happens in San Francisco And 2959 02:00:27,893 --> 02:00:30,293 these are not options. 2960 02:00:31,764 --> 02:00:32,631 We need to keep moving forward. 2961 02:00:32,631 --> 02:00:34,233 Star Genie The company will not 2962 02:00:34,233 --> 02:00:36,233 stop itself. 2963 02:00:39,605 --> 02:00:40,500 >> Thank you. 2964 02:00:40,500 --> 02:00:40,673 Thank you. 2965 02:00:40,673 --> 02:00:41,390 Our next speaker is James 2966 02:00:41,390 --> 02:00:43,390 Ferguson. 2967 02:00:45,478 --> 02:00:46,178 James, you have Deborah 2968 02:00:46,178 --> 02:00:46,979 Winthrop or any time to you 2969 02:00:46,979 --> 02:00:49,148 Deborah, can you raise your 2970 02:00:49,148 --> 02:00:49,614 hand? 2971 02:00:49,614 --> 02:00:50,480 >> Thank you. 2972 02:00:50,480 --> 02:00:52,480 Two minutes. 2973 02:00:54,530 --> 02:00:55,121 Thank you. 2974 02:00:55,121 --> 02:00:58,991 My name is James and I live in 2975 02:00:58,991 --> 02:00:59,725 North Park and I have been an 2976 02:00:59,725 --> 02:01:02,725 advocate for climate issues and 2977 02:01:03,950 --> 02:01:03,762 our energy systems for my 2978 02:01:03,762 --> 02:01:04,330 entire adult life which is 2979 02:01:04,330 --> 02:01:06,330 actually pretty long. 2980 02:01:07,666 --> 02:01:08,200 I went to college in 1975 and 2981 02:01:08,200 --> 02:01:08,768 that's where I took 2982 02:01:08,768 --> 02:01:10,768 environmental science. 2983 02:01:12,371 --> 02:01:13,380 I'm a retired naval officer and 2984 02:01:13,380 --> 02:01:15,438 anesthesia provider and this 2985 02:01:17,376 --> 02:01:17,743 has been a passion of mine for 2986 02:01:17,743 --> 02:01:18,377 that long. 2987 02:01:18,377 --> 02:01:21,377 I'm now Senate liaison for 2988 02:01:22,314 --> 02:01:22,915 Citizens Climate Lobby and I 2989 02:01:22,915 --> 02:01:23,616 must tell you that we're 2990 02:01:23,616 --> 02:01:26,160 working on transmission issues 2991 02:01:27,286 --> 02:01:27,987 this year with the federal 2992 02:01:27,987 --> 02:01:28,654 government And I tell you that 2993 02:01:28,654 --> 02:01:31,540 dependency model of early 2994 02:01:32,358 --> 02:01:33,250 monopoly electronic electrical 2995 02:01:33,250 --> 02:01:36,250 systems no longer serves as 2996 02:01:36,929 --> 02:01:37,663 well as electrical demand will 2997 02:01:37,663 --> 02:01:38,364 double or triple in the next 20 2998 02:01:38,364 --> 02:01:41,364 years because of data centers 2999 02:01:41,701 --> 02:01:43,701 electrification, reshoring of 3000 02:01:46,539 --> 02:01:47,206 business etc. Favoring big 3001 02:01:47,206 --> 02:01:49,606 distant production and long 3002 02:01:51,277 --> 02:01:51,911 wires with cpu c guaranteeing 3003 02:01:51,911 --> 02:01:54,311 double digit profits over 3004 02:01:55,848 --> 02:01:56,916 whatever costs are incurred And 3005 02:01:56,916 --> 02:02:00,786 it doesn't even have to try to 3006 02:02:00,786 --> 02:02:01,621 economize. 3007 02:02:01,621 --> 02:02:04,621 So they are incentivized to 3008 02:02:06,580 --> 02:02:06,759 spend as much as possible 3009 02:02:06,759 --> 02:02:09,759 because that's a percent above 3010 02:02:10,363 --> 02:02:13,963 the cost that they incur while 3011 02:02:14,600 --> 02:02:15,268 lack of profit incentives for 3012 02:02:15,268 --> 02:02:15,835 upgrades and maintenance of 3013 02:02:15,835 --> 02:02:16,435 the not very lucrative 3014 02:02:16,435 --> 02:02:18,835 capacities of the local 3015 02:02:19,906 --> 02:02:20,640 distribution grid is a failure 3016 02:02:20,640 --> 02:02:23,400 to accommodate local generation 3017 02:02:24,643 --> 02:02:25,411 and storage which we could do. 3018 02:02:25,411 --> 02:02:29,110 We have a lot of available 3019 02:02:29,182 --> 02:02:29,715 storage opportunities and in 3020 02:02:29,715 --> 02:02:30,483 solar opportunities. 3021 02:02:30,483 --> 02:02:34,830 But an sd Genie technician came 3022 02:02:34,420 --> 02:02:35,288 to my house to explain to me 3023 02:02:35,288 --> 02:02:38,624 why my 200 hour panel is crying 3024 02:02:38,624 --> 02:02:39,292 and it's because he just said 3025 02:02:39,292 --> 02:02:39,992 Well there's a lot of solar 3026 02:02:39,992 --> 02:02:42,929 systems around here These old 3027 02:02:42,929 --> 02:02:43,896 circuits just can't handle it. 3028 02:02:43,896 --> 02:02:48,960 So we pay the highest rates in 3029 02:02:48,234 --> 02:02:48,902 America in the continental 3030 02:02:48,902 --> 02:02:49,502 states two times California 3031 02:02:49,502 --> 02:02:51,902 average with three times 3032 02:02:51,904 --> 02:02:52,272 the national average. 3033 02:02:52,272 --> 02:02:54,272 Thank you. 3034 02:02:56,876 --> 02:02:57,743 Thank you. 3035 02:02:57,743 --> 02:03:01,343 Next speaker is D.A. Diego 3036 02:03:03,316 --> 02:03:04,150 Sandoval. 3037 02:03:04,150 --> 02:03:04,450 Do you have time to buy Ben 3038 02:03:04,450 --> 02:03:05,185 Owens? 3039 02:03:05,185 --> 02:03:05,552 Ben, could you raise your hand? 3040 02:03:05,552 --> 02:03:07,287 Thank you. 3041 02:03:07,287 --> 02:03:07,887 And Pamela Isaacs, thank you. 3042 02:03:07,887 --> 02:03:08,321 You have three minutes. 3043 02:03:08,321 --> 02:03:10,321 Please begin. 3044 02:03:11,524 --> 02:03:12,291 Thank you. 3045 02:03:12,291 --> 02:03:12,926 Good afternoon, City Council. 3046 02:03:12,926 --> 02:03:15,528 My name is Diego Sandoval. 3047 02:03:15,528 --> 02:03:16,295 I live in District eight and 3048 02:03:16,295 --> 02:03:16,896 I'm here today to ask you to 3049 02:03:16,896 --> 02:03:19,296 choose public power over 3050 02:03:20,200 --> 02:03:21,101 the greed and power hungry 3051 02:03:21,101 --> 02:03:21,767 genie as De Genie wants you to 3052 02:03:21,767 --> 02:03:24,767 think that there is serious 3053 02:03:25,272 --> 02:03:25,972 about what's doing best for our 3054 02:03:25,972 --> 02:03:26,606 environment and people when in 3055 02:03:26,606 --> 02:03:29,600 reality they're just doing 3056 02:03:30,243 --> 02:03:31,110 what's best for their pockets 3057 02:03:31,110 --> 02:03:34,611 so much so that they change 3058 02:03:35,150 --> 02:03:35,582 the g in their logo to Green. 3059 02:03:35,582 --> 02:03:36,149 Now it's green. 3060 02:03:36,149 --> 02:03:37,170 How nice is that? 3061 02:03:37,170 --> 02:03:39,286 And truth as the genie supports 3062 02:03:39,286 --> 02:03:40,860 fighting climate change insofar 3063 02:03:40,860 --> 02:03:40,853 as they can profit from it and 3064 02:03:40,853 --> 02:03:43,853 households across San Diego are 3065 02:03:44,925 --> 02:03:45,625 feeling that every month for a 3066 02:03:45,625 --> 02:03:46,226 company committed to net zero 3067 02:03:46,226 --> 02:03:48,226 they're still incredibly 3068 02:03:49,796 --> 02:03:50,960 enthusiastic about fossil 3069 02:03:50,960 --> 02:03:50,797 fuels. 3070 02:03:50,797 --> 02:03:51,564 Ac Genie is owned by Sempra 3071 02:03:51,564 --> 02:03:54,564 which has invested heavily in 3072 02:03:54,801 --> 02:03:55,468 the transportation of what they 3073 02:03:55,468 --> 02:03:55,735 euphemistically call natural 3074 02:03:55,735 --> 02:03:57,735 gas. 3075 02:03:59,390 --> 02:03:59,739 Natural gas is the most highly 3076 02:03:59,739 --> 02:04:00,440 potent greenhouse gas methane. 3077 02:04:00,440 --> 02:04:04,400 To quote the CHAIRMAN And ceo 3078 02:04:04,177 --> 02:04:04,711 of Sempra from last month, they 3079 02:04:04,711 --> 02:04:07,111 are very bullish on 3080 02:04:08,915 --> 02:04:09,716 the liquefied natural gas trade 3081 02:04:09,716 --> 02:04:12,919 long term This is not what you 3082 02:04:12,919 --> 02:04:13,620 say when you're serious about 3083 02:04:13,620 --> 02:04:14,321 net zero or what's doing best 3084 02:04:14,321 --> 02:04:17,624 for the people or the climate 3085 02:04:17,624 --> 02:04:18,910 that they depend on for a 3086 02:04:18,910 --> 02:04:18,792 livable future. 3087 02:04:18,792 --> 02:04:21,192 This corporations mentality of 3088 02:04:22,562 --> 02:04:23,463 grasping what every book they 3089 02:04:23,463 --> 02:04:27,134 can be seen is can be seen in 3090 02:04:27,134 --> 02:04:27,500 their filing for their general 3091 02:04:27,500 --> 02:04:28,201 rate case. 3092 02:04:28,201 --> 02:04:31,505 They claim that they need to 3093 02:04:31,505 --> 02:04:32,139 raise their rates for wildfire 3094 02:04:32,139 --> 02:04:32,739 mitigation in the case of 3095 02:04:32,739 --> 02:04:34,739 ongoing climate changes. 3096 02:04:36,643 --> 02:04:37,344 Yet on the very same page they 3097 02:04:37,344 --> 02:04:37,811 also say they want to raise 3098 02:04:37,811 --> 02:04:38,544 rates to support 3099 02:04:38,544 --> 02:04:41,544 the construction of new gas 3100 02:04:41,881 --> 02:04:42,449 facilities. 3101 02:04:42,449 --> 02:04:43,317 Does that make sense? 3102 02:04:43,317 --> 02:04:43,984 They want us to pay more so 3103 02:04:43,984 --> 02:04:46,384 that they can continue 3104 02:04:47,200 --> 02:04:47,654 contributing to climate change 3105 02:04:47,654 --> 02:04:50,654 then use climate change as 3106 02:04:51,240 --> 02:04:51,792 justification for us paying 3107 02:04:51,792 --> 02:04:52,593 more as the genie does not care 3108 02:04:52,593 --> 02:04:55,593 about people or the environment 3109 02:04:56,396 --> 02:04:56,763 they only care about profit not 3110 02:04:56,763 --> 02:04:57,364 progress. 3111 02:04:57,364 --> 02:05:00,364 San Diego can do better. 3112 02:05:01,702 --> 02:05:02,402 This is why I asked for you to 3113 02:05:02,402 --> 02:05:03,700 choose public power today but 3114 02:05:03,700 --> 02:05:05,939 also to work with our union 3115 02:05:05,939 --> 02:05:06,673 brothers and sisters to ensure 3116 02:05:06,673 --> 02:05:07,140 that they are considered during 3117 02:05:07,140 --> 02:05:07,774 this transition. 3118 02:05:07,774 --> 02:05:10,644 To echo the opinions of a 3119 02:05:10,644 --> 02:05:11,110 previous speaker we can do this 3120 02:05:11,110 --> 02:05:11,445 together. 3121 02:05:11,445 --> 02:05:11,744 >> Thank you. 3122 02:05:11,744 --> 02:05:13,744 Yeah. 3123 02:05:15,315 --> 02:05:16,160 Thank you. 3124 02:05:16,160 --> 02:05:19,160 Next speaker is Tyler Andre. 3125 02:05:21,154 --> 02:05:21,855 Tyler, you have several 3126 02:05:21,855 --> 02:05:22,355 individuals setting your time. 3127 02:05:22,355 --> 02:05:24,355 Cory Quite Lander. 3128 02:05:26,260 --> 02:05:28,426 Thank you, Jackie Smith. 3129 02:05:31,464 --> 02:05:34,464 Thank you, Fred And here. 3130 02:05:35,135 --> 02:05:35,569 Thank you. 3131 02:05:35,569 --> 02:05:35,936 Rhea Coleman. 3132 02:05:35,936 --> 02:05:36,603 Thank you. 3133 02:05:36,603 --> 02:05:39,603 You will have five minutes. 3134 02:05:39,873 --> 02:05:40,541 Please begin. 3135 02:05:40,541 --> 02:05:41,410 >> Good afternoon, Counsel. 3136 02:05:41,410 --> 02:05:41,775 My name is Dre. 3137 02:05:41,775 --> 02:05:44,878 I am a resident of District 3138 02:05:44,878 --> 02:05:45,746 one, a Navy veteran and a small 3139 02:05:45,746 --> 02:05:48,616 business owner as well as a 3140 02:05:48,616 --> 02:05:49,350 proud volunteer with San Diego 3141 02:05:49,350 --> 02:05:52,350 350 and Public Power San Diego. 3142 02:05:53,354 --> 02:05:53,988 >> Now why are so many people 3143 02:05:53,988 --> 02:05:54,488 motivated to be here on a 3144 02:05:54,488 --> 02:05:56,488 Monday afternoon? 3145 02:05:58,920 --> 02:05:58,826 >> And why does Jeannie solicit 3146 02:05:58,826 --> 02:05:59,293 curses from every San Diego who 3147 02:05:59,293 --> 02:06:01,293 hears that name? 3148 02:06:02,830 --> 02:06:03,531 It's because every single one 3149 02:06:03,531 --> 02:06:04,980 of us has had that moment. 3150 02:06:04,980 --> 02:06:04,798 The one where you open 3151 02:06:04,798 --> 02:06:08,102 the billing up or the bill 3152 02:06:08,102 --> 02:06:08,602 lands on the counter and you 3153 02:06:08,602 --> 02:06:09,270 just stare at it. 3154 02:06:09,270 --> 02:06:12,270 Maybe you reread the number 3155 02:06:13,241 --> 02:06:13,774 like it'll change. 3156 02:06:13,774 --> 02:06:14,441 It won't. 3157 02:06:14,441 --> 02:06:15,142 In case you're wondering in 3158 02:06:15,142 --> 02:06:15,843 fact don't look at it too many 3159 02:06:15,843 --> 02:06:17,545 times because I'm going to 3160 02:06:17,545 --> 02:06:18,345 charge you extra for that. 3161 02:06:18,345 --> 02:06:21,345 >> And what's maddening is that 3162 02:06:21,615 --> 02:06:22,149 we live in one of the sunniest 3163 02:06:22,149 --> 02:06:22,783 city in the country. 3164 02:06:22,783 --> 02:06:25,783 Solar is now the cheapest 3165 02:06:26,153 --> 02:06:26,687 electricity on earth and we are 3166 02:06:26,687 --> 02:06:27,388 still paying some of 3167 02:06:27,388 --> 02:06:30,388 the highest electric rates in 3168 02:06:30,558 --> 02:06:31,459 the continental United States. 3169 02:06:31,459 --> 02:06:32,126 This is a broken arrangement 3170 02:06:32,126 --> 02:06:32,526 created by an investor owned 3171 02:06:32,526 --> 02:06:34,526 corporation. 3172 02:06:35,996 --> 02:06:36,697 In fact here are the numbers. 3173 02:06:36,697 --> 02:06:39,697 >> Straight from the cpu See? 3174 02:06:39,900 --> 02:06:41,900 Since 2014 sd genius 3175 02:06:42,436 --> 02:06:43,304 residential rates have gone up 3176 02:06:43,304 --> 02:06:45,704 about 117% Inflation over that 3177 02:06:47,575 --> 02:06:48,242 same period 39%. 3178 02:06:48,242 --> 02:06:51,242 Sd Genius rates have grown 3179 02:06:52,313 --> 02:06:52,980 three times faster than 3180 02:06:52,980 --> 02:06:53,281 the cost of everything three 3181 02:06:53,281 --> 02:06:55,281 times. 3182 02:06:57,818 --> 02:06:58,519 Right now nearly one in five sd 3183 02:06:58,519 --> 02:06:58,920 Genie households are behind on 3184 02:06:58,920 --> 02:07:00,920 their bill. 3185 02:07:02,957 --> 02:07:05,957 >> Owning an average owing an 3186 02:07:06,600 --> 02:07:06,794 average of over $500. 3187 02:07:06,794 --> 02:07:07,495 Those are our neighbors. 3188 02:07:07,495 --> 02:07:10,495 That's multiple people in this 3189 02:07:11,980 --> 02:07:11,966 room right now. 3190 02:07:11,966 --> 02:07:12,400 >> And this doesn't stop at our 3191 02:07:12,400 --> 02:07:14,400 electric bill. 3192 02:07:15,770 --> 02:07:16,471 Local businesses pay these same 3193 02:07:16,471 --> 02:07:17,171 rates and that cost gets built 3194 02:07:17,171 --> 02:07:20,374 into the price of your coffee, 3195 02:07:20,374 --> 02:07:20,708 your haircut, your kid's 3196 02:07:20,708 --> 02:07:21,342 daycare. 3197 02:07:21,342 --> 02:07:21,943 High electric rates are a 3198 02:07:21,943 --> 02:07:24,343 hidden cost on every 3199 02:07:25,913 --> 02:07:26,681 transaction in the city. 3200 02:07:26,681 --> 02:07:27,548 >> Our water rates mtf also 3201 02:07:27,548 --> 02:07:30,485 facing a deficit has to pay 3202 02:07:30,485 --> 02:07:31,151 them too. 3203 02:07:31,151 --> 02:07:31,819 So that's why we're here 3204 02:07:31,819 --> 02:07:34,219 because we're tired of 3205 02:07:34,956 --> 02:07:35,656 subsidizing a system that costs 3206 02:07:35,656 --> 02:07:36,424 us three times more than it 3207 02:07:36,424 --> 02:07:39,293 should in the one city in 3208 02:07:39,293 --> 02:07:39,627 America with the least excuse 3209 02:07:39,627 --> 02:07:40,561 for it. 3210 02:07:40,561 --> 02:07:44,232 But here's what I'd like you to 3211 02:07:44,232 --> 02:07:44,966 think about. 3212 02:07:44,966 --> 02:07:45,633 >> This is the business model 3213 02:07:45,633 --> 02:07:48,330 working exactly as designed. 3214 02:07:49,103 --> 02:07:49,604 Sd Jeannie is a government 3215 02:07:49,604 --> 02:07:50,305 granted monopoly. 3216 02:07:50,305 --> 02:07:53,374 You can't shop around for your 3217 02:07:53,374 --> 02:07:54,420 power and under California's 3218 02:07:54,420 --> 02:07:54,642 regulatory system it doesn't 3219 02:07:54,642 --> 02:07:57,642 make money by giving you 3220 02:07:58,346 --> 02:07:59,113 cheaper or better power. 3221 02:07:59,113 --> 02:07:59,814 It makes money by spending more 3222 02:07:59,814 --> 02:08:01,814 on infrastructure because 3223 02:08:03,585 --> 02:08:04,319 the state guarantees its 3224 02:08:04,319 --> 02:08:07,319 shareholders a return of nearly 3225 02:08:07,955 --> 02:08:08,389 10% on every dollar that it 3226 02:08:08,389 --> 02:08:09,230 spends. 3227 02:08:09,230 --> 02:08:09,390 Not on outcomes but on 3228 02:08:09,390 --> 02:08:11,390 spending. 3229 02:08:15,112 --> 02:08:15,281 Sd Jeannie boasts up to $1 3230 02:08:15,281 --> 02:08:15,434 billion in annual profits and 3231 02:08:15,434 --> 02:08:15,583 that money comes from 3232 02:08:15,583 --> 02:08:17,532 somewhere. 3233 02:08:17,532 --> 02:08:18,199 It came from us. 3234 02:08:18,199 --> 02:08:18,466 Yet they'll shut your power 3235 02:08:18,466 --> 02:08:20,466 off. 3236 02:08:22,637 --> 02:08:23,304 It is also why sd Jeannie 3237 02:08:23,304 --> 02:08:24,500 doesn't celebrate when your 3238 02:08:24,500 --> 02:08:26,508 neighbor puts solar panels on 3239 02:08:26,508 --> 02:08:27,175 the roof. 3240 02:08:27,175 --> 02:08:30,175 Solar that we the ratepayers 3241 02:08:31,246 --> 02:08:31,913 pay for Personally under this 3242 02:08:31,913 --> 02:08:32,614 business model your rooftop 3243 02:08:32,614 --> 02:08:36,751 solar is a loss of revenue to 3244 02:08:36,751 --> 02:08:37,652 them not a win for the grid. 3245 02:08:37,652 --> 02:08:38,319 >> And sd Genies parent company 3246 02:08:38,319 --> 02:08:41,155 Sempra is one of the largest 3247 02:08:41,155 --> 02:08:41,856 builders of fossil fuel export 3248 02:08:41,856 --> 02:08:42,757 infrastructure in the country. 3249 02:08:42,757 --> 02:08:46,161 >> So while we MAY be doing our 3250 02:08:46,161 --> 02:08:46,828 best to go green, the company 3251 02:08:46,828 --> 02:08:50,428 taking our power bill is in 3252 02:08:50,532 --> 02:08:51,232 other corners of its empire 3253 02:08:51,232 --> 02:08:51,700 building out more fossil fuel 3254 02:08:51,700 --> 02:08:53,700 infrastructure. 3255 02:08:55,360 --> 02:08:55,737 And they protect this 3256 02:08:55,737 --> 02:08:56,438 arrangement the same way every 3257 02:08:56,438 --> 02:08:58,838 entrenched monopoly does with 3258 02:08:59,640 --> 02:09:00,542 money in politics. 3259 02:09:00,542 --> 02:09:01,209 Sempra spendnds over $1 million a 3260 02:09:01,209 --> 02:09:03,609 year lobbying Sacramento and 3261 02:09:05,280 --> 02:09:05,780 the very commission that sets 3262 02:09:05,780 --> 02:09:06,648 its profit margin. 3263 02:09:06,648 --> 02:09:09,751 >> Take a look at where Sempra 3264 02:09:09,751 --> 02:09:10,552 Nest is. 3265 02:09:10,552 --> 02:09:10,919 You need to donate their money. 3266 02:09:10,919 --> 02:09:11,853 Our money. 3267 02:09:11,853 --> 02:09:14,789 This isn't just about a high 3268 02:09:14,789 --> 02:09:15,457 bill. 3269 02:09:15,457 --> 02:09:16,570 It's about a monopoly that 3270 02:09:16,570 --> 02:09:18,457 profits by spending more 3271 02:09:19,928 --> 02:09:20,562 vitally clean energy on our 3272 02:09:20,562 --> 02:09:21,229 roofs and spends our money 3273 02:09:21,229 --> 02:09:24,229 lobbying the people meant to 3274 02:09:24,332 --> 02:09:25,000 hold them accountable. 3275 02:09:25,000 --> 02:09:27,000 This is unacceptable. 3276 02:09:29,700 --> 02:09:29,373 This is nonpartisan and this is 3277 02:09:29,373 --> 02:09:30,138 wrong. 3278 02:09:30,138 --> 02:09:30,772 >> I want to end with a 3279 02:09:30,772 --> 02:09:31,473 question to the room and I 3280 02:09:31,473 --> 02:09:34,473 think you will actually might 3281 02:09:35,430 --> 02:09:35,744 know the answer. 3282 02:09:35,744 --> 02:09:36,440 How do you spell corporate 3283 02:09:36,440 --> 02:09:38,440 greed? 3284 02:09:41,283 --> 02:09:44,283 Sd Jeannie, thank you Counsel. 3285 02:09:46,880 --> 02:09:46,388 >> Thank you for your comments 3286 02:09:46,388 --> 02:09:47,550 . 3287 02:09:47,550 --> 02:09:47,522 Our next speaker is Isaiah 3288 02:09:47,522 --> 02:09:49,522 Glass of Isaiah. 3289 02:09:51,326 --> 02:09:52,930 You have several people sending 3290 02:09:52,930 --> 02:09:52,661 you time so I just need to 3291 02:09:52,661 --> 02:09:54,661 confirm they're here. 3292 02:09:56,198 --> 02:09:59,198 Robin Gill Burt thank you. 3293 02:10:00,802 --> 02:10:01,470 Mary Fifield Thank you. 3294 02:10:01,470 --> 02:10:04,470 Andrew Lund Steve Thank you. 3295 02:10:05,407 --> 02:10:06,208 So today Lopez Eugenio thank 3296 02:10:06,208 --> 02:10:06,608 you And Mike meaning All right, 3297 02:10:06,608 --> 02:10:08,608 Thank you. 3298 02:10:10,479 --> 02:10:10,979 You will have six minutes. 3299 02:10:10,979 --> 02:10:11,580 >> Please begin. 3300 02:10:11,580 --> 02:10:11,914 Good afternoon, Council 3301 02:10:11,914 --> 02:10:13,914 members. 3302 02:10:15,583 --> 02:10:16,251 My name is Isaiah Glasser and 3303 02:10:16,251 --> 02:10:16,852 I'm the program director for 3304 02:10:16,852 --> 02:10:17,486 Public Power San Diego. 3305 02:10:17,486 --> 02:10:20,222 I want to take a moment to 3306 02:10:20,222 --> 02:10:20,922 thank all the volunteers who 3307 02:10:20,922 --> 02:10:21,556 came out to support the Phase 3308 02:10:21,556 --> 02:10:22,157 two public power study and 3309 02:10:22,157 --> 02:10:24,557 public power in general. 3310 02:10:24,960 --> 02:10:25,560 I really do appreciate it from 3311 02:10:25,560 --> 02:10:28,560 the bottom of my heart. 3312 02:10:29,131 --> 02:10:29,765 This new gen study shows even 3313 02:10:29,765 --> 02:10:30,466 in the most conservative 3314 02:10:30,466 --> 02:10:33,466 modeling that public power is 3315 02:10:34,136 --> 02:10:34,837 good for San Diego and it's 3316 02:10:34,837 --> 02:10:35,504 good for San Diego is the key 3317 02:10:35,504 --> 02:10:36,380 number that determines this 3318 02:10:36,380 --> 02:10:38,438 amount of savings is 3319 02:10:38,474 --> 02:10:39,441 the revenue growth rate. 3320 02:10:39,441 --> 02:10:42,344 New Gen assumed 4% and admits 3321 02:10:42,344 --> 02:10:43,440 that 6% is more realistic and 3322 02:10:43,440 --> 02:10:47,216 it's a total slap in the face 3323 02:10:47,216 --> 02:10:47,983 that just a couple of days ago 3324 02:10:47,983 --> 02:10:48,283 you filed for an 8% increase in 3325 02:10:48,283 --> 02:10:50,283 2028. 3326 02:10:51,887 --> 02:10:52,554 The second you take this model 3327 02:10:52,554 --> 02:10:53,255 it's the same You take this 3328 02:10:53,255 --> 02:10:53,889 model and use a revenue growth 3329 02:10:53,889 --> 02:10:56,250 rate that's anywhere near 3330 02:10:56,250 --> 02:10:56,791 reality. 3331 02:10:56,791 --> 02:10:57,526 The savings are absolutely mind 3332 02:10:57,526 --> 02:11:01,163 blowing and it seems to me that 3333 02:11:01,163 --> 02:11:01,864 we're actually pretty close to 3334 02:11:01,864 --> 02:11:02,564 consensus on that which makes 3335 02:11:02,564 --> 02:11:05,564 common sense because when you 3336 02:11:05,935 --> 02:11:06,635 cut Wall Street profit out of 3337 02:11:06,635 --> 02:11:07,360 our electricity bills you will 3338 02:11:07,360 --> 02:11:09,360 see savings. 3339 02:11:11,172 --> 02:11:11,707 Many of us here today knew this 3340 02:11:11,707 --> 02:11:12,408 back in 2020 during 3341 02:11:12,408 --> 02:11:14,109 the franchise agreement fight 3342 02:11:14,109 --> 02:11:14,810 and again in 2024 during 3343 02:11:14,810 --> 02:11:17,313 the power San Diego campaign. 3344 02:11:17,313 --> 02:11:17,813 Public power was the right 3345 02:11:17,813 --> 02:11:18,580 choice in 2020. 3346 02:11:18,580 --> 02:11:18,914 It was the right choice in 3347 02:11:18,914 --> 02:11:20,914 2024. 3348 02:11:22,284 --> 02:11:23,520 It's the right choice in 2026 3349 02:11:23,520 --> 02:11:23,385 and it will be the right choice 3350 02:11:23,385 --> 02:11:25,385 in 2023. 3351 02:11:27,255 --> 02:11:27,756 The question is not if public 3352 02:11:27,756 --> 02:11:28,524 power saves money. 3353 02:11:28,524 --> 02:11:32,124 The question is when will we 3354 02:11:32,395 --> 02:11:33,128 have a council that is brave 3355 02:11:33,128 --> 02:11:36,728 enough to take on the corporate 3356 02:11:37,660 --> 02:11:37,799 oligarchs that any all of us 3357 02:11:37,799 --> 02:11:41,399 here today are being ripped off 3358 02:11:42,204 --> 02:11:42,805 by our stage name including 3359 02:11:42,805 --> 02:11:43,639 the city of San Diego. 3360 02:11:43,639 --> 02:11:46,575 The city pays an sd Jeanie Bill 3361 02:11:46,575 --> 02:11:47,109 the water department pays 3362 02:11:47,109 --> 02:11:47,777 the nasty G.I. Bill. 3363 02:11:47,777 --> 02:11:50,777 The sewer department pays a 3364 02:11:50,879 --> 02:11:51,480 nasty G.I. Bill Electric rates 3365 02:11:51,480 --> 02:11:52,810 are a cost inflator on 3366 02:11:52,810 --> 02:11:54,481 the entire city budget. 3367 02:11:55,818 --> 02:11:56,519 Public power would help 3368 02:11:56,519 --> 02:11:56,919 the city's structural deficit, 3369 02:11:56,919 --> 02:11:58,919 t harm it. 3370 02:12:00,689 --> 02:12:01,390 We really truly are the council 3371 02:12:01,390 --> 02:12:04,693 and the people of San Diego on 3372 02:12:04,693 --> 02:12:04,994 the same side against sd Jenny 3373 02:12:04,994 --> 02:12:05,595 . 3374 02:12:05,595 --> 02:12:07,995 And moving forward we 3375 02:12:09,932 --> 02:12:10,600 absolutely must protect ibew 3376 02:12:10,600 --> 02:12:11,333 guarantee their fought hard, 3377 02:12:11,333 --> 02:12:14,333 hard fought labor contracts and 3378 02:12:14,503 --> 02:12:15,238 hard earned pension funds. 3379 02:12:15,238 --> 02:12:15,738 And that is absolutely doable 3380 02:12:15,738 --> 02:12:17,473 with public power. 3381 02:12:17,473 --> 02:12:21,730 Now I've got a message for 3382 02:12:22,478 --> 02:12:23,312 the bosses at e! 3383 02:12:23,312 --> 02:12:23,745 >> The public power movement is 3384 02:12:23,745 --> 02:12:25,745 only growing. 3385 02:12:27,884 --> 02:12:30,284 Your days are numbered. 3386 02:12:32,134 --> 02:12:34,534 Of pillaging our community. 3387 02:12:37,659 --> 02:12:37,871 Your for profit monopoly will 3388 02:12:37,871 --> 02:12:38,740 end. 3389 02:12:38,740 --> 02:12:38,256 >> Thank you. 3390 02:12:38,256 --> 02:12:40,960 >> Thank you. 3391 02:12:40,960 --> 02:12:40,796 Alison Miller Well Alison comes 3392 02:12:40,796 --> 02:12:41,397 to the microphone I will ask 3393 02:12:41,397 --> 02:12:43,397 Blaire Beekman, Jessica 3394 02:12:47,823 --> 02:12:47,990 Anderson Nicole Lilly Yeah and 3395 02:12:47,990 --> 02:12:50,500 Dori Bruggeman to please come 3396 02:12:50,500 --> 02:12:50,607 to the front room. 3397 02:12:50,607 --> 02:12:51,441 >> Alison, please begin. 3398 02:12:51,441 --> 02:12:54,944 Hello Council I am a resident 3399 02:12:54,944 --> 02:12:55,678 of District three and I am here 3400 02:12:55,678 --> 02:12:59,278 today because a quarter of your 3401 02:12:59,716 --> 02:13:00,483 voters and my neighbors are in 3402 02:13:00,483 --> 02:13:04,830 debt to corporate greed as any 3403 02:13:04,354 --> 02:13:05,221 at any given time. 3404 02:13:05,221 --> 02:13:05,888 >> They're on track to make $1 3405 02:13:05,888 --> 02:13:08,858 billion in profits this year 3406 02:13:08,858 --> 02:13:09,492 yet they continue to ask for 3407 02:13:09,492 --> 02:13:10,260 more during the same time 3408 02:13:10,260 --> 02:13:10,760 period they've been 3409 02:13:10,760 --> 02:13:13,160 participating in union busting. 3410 02:13:13,930 --> 02:13:14,697 They've been turning to private 3411 02:13:14,697 --> 02:13:17,697 contractors that hurt our union 3412 02:13:18,568 --> 02:13:19,302 neighbors. 3413 02:13:19,302 --> 02:13:20,350 We the supporters of the public 3414 02:13:20,350 --> 02:13:20,603 power movement are committed to 3415 02:13:20,603 --> 02:13:22,738 working with our union 3416 02:13:22,738 --> 02:13:23,473 neighbors as we implement 3417 02:13:23,473 --> 02:13:24,600 public power And I ask you to 3418 02:13:24,600 --> 02:13:24,674 commit to the same. 3419 02:13:24,674 --> 02:13:27,740 Opponents today have argued 3420 02:13:27,477 --> 02:13:28,144 that there isn't enough 3421 02:13:28,144 --> 02:13:28,444 information to take the next 3422 02:13:28,444 --> 02:13:30,444 step. 3423 02:13:32,810 --> 02:13:32,749 But you have before you data 3424 02:13:32,749 --> 02:13:33,149 that is founded on good 3425 02:13:33,149 --> 02:13:35,149 information. 3426 02:13:37,754 --> 02:13:38,288 It's time today is the time to 3427 02:13:38,288 --> 02:13:38,922 take the next step. 3428 02:13:38,922 --> 02:13:41,922 There will never be enough 3429 02:13:42,258 --> 02:13:43,920 information for some people. 3430 02:13:43,920 --> 02:13:43,560 Today San Diego pays and see 3431 02:13:43,560 --> 02:13:45,560 Jeannie profits. 3432 02:13:46,896 --> 02:13:47,597 But San Diegans deserve to own 3433 02:13:47,597 --> 02:13:47,931 the goods and services that we 3434 02:13:47,931 --> 02:13:48,565 pay for. 3435 02:13:48,565 --> 02:13:52,165 So today I'm asking you to 3436 02:13:52,168 --> 02:13:52,836 reject corporate greed and act 3437 02:13:52,836 --> 02:13:53,436 in support of San Diegans by 3438 02:13:53,436 --> 02:13:54,104 supporting public good. 3439 02:13:54,104 --> 02:13:54,404 >> That doesn't include your 3440 02:13:54,404 --> 02:13:56,404 time. 3441 02:14:04,848 --> 02:14:06,848 Blair Beekman. 3442 02:14:09,114 --> 02:14:09,307 Hi. 3443 02:14:09,307 --> 02:14:09,486 I'm already here. 3444 02:14:09,486 --> 02:14:09,673 Shoot. 3445 02:14:09,673 --> 02:14:09,842 It's my time. 3446 02:14:09,842 --> 02:14:10,860 Thank you. 3447 02:14:10,860 --> 02:14:12,486 I'm not very knowledgeable 3448 02:14:13,256 --> 02:14:13,757 about these things, but I come 3449 02:14:13,757 --> 02:14:14,524 from the Bay Area. 3450 02:14:14,524 --> 02:14:18,124 They have a great tradition of 3451 02:14:18,295 --> 02:14:19,162 community energy and working 3452 02:14:19,162 --> 02:14:19,729 with unions I feel I have to 3453 02:14:19,729 --> 02:14:20,960 refresh myself on such 3454 02:14:20,960 --> 02:14:22,960 subjects. 3455 02:14:23,767 --> 02:14:24,434 I hope you guys are learning 3456 02:14:24,434 --> 02:14:27,434 that too that the municipal 3457 02:14:27,870 --> 02:14:28,738 things weren't offered here. 3458 02:14:28,738 --> 02:14:32,338 For union things I hope there 3459 02:14:32,976 --> 02:14:33,276 can be dialog between everyone 3460 02:14:33,276 --> 02:14:34,100 . 3461 02:14:34,100 --> 02:14:34,578 It sounds like people want to 3462 02:14:34,578 --> 02:14:35,278 have the dialog and we 3463 02:14:35,278 --> 02:14:38,114 definitely want to believe in 3464 02:14:38,114 --> 02:14:38,648 the future of what community 3465 02:14:38,648 --> 02:14:40,648 energy can offer. 3466 02:14:42,953 --> 02:14:43,553 Where you minister a municipal 3467 02:14:43,553 --> 02:14:44,221 system MAY not work. 3468 02:14:44,221 --> 02:14:44,888 We do have little small 3469 02:14:44,888 --> 02:14:47,288 programs you know like 3470 02:14:48,191 --> 02:14:48,825 the funding of neighborhood 3471 02:14:48,825 --> 02:14:51,225 infrastructure that can be 3472 02:14:52,996 --> 02:14:53,763 called a municipal program 3473 02:14:53,763 --> 02:14:54,164 possibly and work in those kind 3474 02:14:54,164 --> 02:14:56,164 of avenues. 3475 02:14:58,502 --> 02:14:59,269 But working towards the overall 3476 02:14:59,269 --> 02:14:59,970 goal of community energy I hope 3477 02:14:59,970 --> 02:15:00,837 we're all on board on that 3478 02:15:00,837 --> 02:15:04,140 subject matter and want to be 3479 02:15:04,140 --> 02:15:04,808 building such good things for 3480 02:15:04,808 --> 02:15:05,308 all of us in our future. 3481 02:15:05,308 --> 02:15:07,308 >> Thank you. 3482 02:15:11,214 --> 02:15:13,614 Thank you, Jessica Anderson. 3483 02:15:17,749 --> 02:15:17,928 >> Hello, Council. 3484 02:15:17,928 --> 02:15:18,960 Month after month over the past 3485 02:15:18,960 --> 02:15:18,259 year my utility bill has 3486 02:15:18,259 --> 02:15:19,689 continued to climb, reaching 3487 02:15:19,689 --> 02:15:20,424 nearly over $300 every single 3488 02:15:20,424 --> 02:15:20,824 month in my first apartment out 3489 02:15:20,824 --> 02:15:21,391 of college. 3490 02:15:21,391 --> 02:15:23,391 This is unaffordable. 3491 02:15:24,595 --> 02:15:25,195 It is ridiculous that City 3492 02:15:25,195 --> 02:15:27,195 Jionni profits nearly $1 3493 02:15:31,997 --> 02:15:32,180 billion a year yet 1 in 5 San 3494 02:15:32,180 --> 02:15:32,364 Diegans cannot afford their 3495 02:15:32,364 --> 02:15:33,300 utility bills. 3496 02:15:33,300 --> 02:15:33,704 It is ridiculous that in that 3497 02:15:33,704 --> 02:15:36,540 stage you need claim that this 3498 02:15:36,540 --> 02:15:37,306 is not feasible when they are 3499 02:15:37,306 --> 02:15:37,641 asking for an 8.6% increase at 3500 02:15:37,641 --> 02:15:39,641 the cpu. 3501 02:15:41,478 --> 02:15:42,279 See it is absolutely ridiculous 3502 02:15:42,279 --> 02:15:42,946 when San Diegans are forced to 3503 02:15:42,946 --> 02:15:45,946 choose between food on their 3504 02:15:46,250 --> 02:15:46,950 table paying their rent and 3505 02:15:46,950 --> 02:15:47,651 paying their utility bills it 3506 02:15:47,651 --> 02:15:50,654 is clear the system is broken. 3507 02:15:50,654 --> 02:15:51,321 Public power is a real 3508 02:15:51,321 --> 02:15:51,655 opportunity to address this 3509 02:15:51,655 --> 02:15:52,356 crisis. 3510 02:15:52,356 --> 02:15:55,356 Public power presents us with 3511 02:15:55,559 --> 02:15:56,600 the opportunity for clean 3512 02:15:56,600 --> 02:15:56,760 affordable energy. 3513 02:15:56,760 --> 02:15:57,461 Public power presents us with 3514 02:15:57,461 --> 02:16:00,461 the opportunity for clean air 3515 02:16:01,131 --> 02:16:01,865 public health, the opportunity 3516 02:16:01,865 --> 02:16:05,465 to protect strong unions and to 3517 02:16:05,869 --> 02:16:06,636 protect people In San Diego who 3518 02:16:06,636 --> 02:16:06,970 cannot afford to live here any 3519 02:16:06,970 --> 02:16:07,671 longer. 3520 02:16:07,671 --> 02:16:11,271 Public power is a real viable 3521 02:16:11,308 --> 02:16:11,976 opportunity to build a more 3522 02:16:11,976 --> 02:16:12,275 affordable and thriving San 3523 02:16:12,275 --> 02:16:12,710 Diego. 3524 02:16:12,710 --> 02:16:13,410 >> Thank you. 3525 02:16:13,410 --> 02:16:16,410 That does conclude your time. 3526 02:16:18,348 --> 02:16:20,348 Nicole Lilly. 3527 02:16:23,520 --> 02:16:25,520 Nicole Lilly. 3528 02:16:30,567 --> 02:16:30,791 Okay. 3529 02:16:30,791 --> 02:16:31,140 Uh oh. 3530 02:16:31,140 --> 02:16:33,140 Here she comes. 3531 02:16:37,735 --> 02:16:39,735 All right. 3532 02:16:41,893 --> 02:16:42,750 >> Sorry. 3533 02:16:42,750 --> 02:16:43,440 Hello. 3534 02:16:43,440 --> 02:16:44,375 My name is Nicole Lilly. 3535 02:16:44,375 --> 02:16:45,750 I'm a 23 year old run turned 3536 02:16:45,750 --> 02:16:46,877 Golden Heel and the executive 3537 02:16:46,877 --> 02:16:47,477 director of our Time to Act a 3538 02:16:47,477 --> 02:16:48,179 youth led 523 nonprofit 3539 02:16:48,179 --> 02:16:48,846 organizing powerful youth for 3540 02:16:48,846 --> 02:16:51,246 an inclusive, equitable and 3541 02:16:52,550 --> 02:16:53,216 sustainable future. 3542 02:16:53,216 --> 02:16:53,818 As youth organizers we have 3543 02:16:53,818 --> 02:16:56,218 become all too familiar 3544 02:16:57,888 --> 02:16:58,622 tackling complicated and 3545 02:16:58,622 --> 02:16:59,223 nuanced issues and creating new 3546 02:16:59,223 --> 02:17:01,223 and innovative solutions 3547 02:17:02,560 --> 02:17:02,860 because it is what is necessary 3548 02:17:02,860 --> 02:17:03,594 . 3549 02:17:03,594 --> 02:17:04,261 I support the implementation of 3550 02:17:04,261 --> 02:17:06,661 public power without denying 3551 02:17:07,365 --> 02:17:07,832 the necessity of labor 3552 02:17:07,832 --> 02:17:08,466 considerations. 3553 02:17:08,466 --> 02:17:11,466 We need not be divided. 3554 02:17:12,403 --> 02:17:13,170 Dismantling monopolies like 3555 02:17:13,170 --> 02:17:13,871 Jeannie is an effort that we 3556 02:17:13,871 --> 02:17:14,538 must join together to pursue. 3557 02:17:14,538 --> 02:17:16,938 Utilities like housing and 3558 02:17:17,475 --> 02:17:18,208 health care are basic needs and 3559 02:17:18,208 --> 02:17:21,779 allowing it to be maintained as 3560 02:17:21,779 --> 02:17:22,446 a tool for profit because it is 3561 02:17:22,446 --> 02:17:23,114 complicated is unacceptable. 3562 02:17:23,114 --> 02:17:26,114 Every day San Diegans young 3563 02:17:27,385 --> 02:17:28,119 organizers like myself demand a 3564 02:17:28,119 --> 02:17:28,819 commitment from this council to 3565 02:17:28,819 --> 02:17:31,522 do what is complicated because 3566 02:17:31,522 --> 02:17:32,289 it is necessary. 3567 02:17:32,289 --> 02:17:32,957 My roommate and I figure out 3568 02:17:32,957 --> 02:17:33,658 how to make do with less and 3569 02:17:33,658 --> 02:17:34,250 less every month to survive in 3570 02:17:34,250 --> 02:17:36,250 San Diego. 3571 02:17:37,929 --> 02:17:38,629 I urge the city to do more to 3572 02:17:38,629 --> 02:17:39,296 make San Diego work for all 3573 02:17:39,296 --> 02:17:39,931 the people in this room not 3574 02:17:39,931 --> 02:17:41,165 the corporations that we 3575 02:17:41,165 --> 02:17:41,666 destroy. 3576 02:17:41,666 --> 02:17:43,666 >> Thank you. 3577 02:17:46,270 --> 02:17:47,405 Lori Saldana. 3578 02:17:47,405 --> 02:17:51,500 >> Good afternoon And I want to 3579 02:17:51,642 --> 02:17:52,276 just acknowledge and thank all 3580 02:17:52,276 --> 02:17:52,977 the people who have spoken 3581 02:17:52,977 --> 02:17:55,377 today because the perspectives 3582 02:17:56,147 --> 02:17:56,848 are important and I think 3583 02:17:56,848 --> 02:17:57,548 they've all raised some really 3584 02:17:57,548 --> 02:18:00,548 excellent points on both sides 3585 02:18:01,319 --> 02:18:02,860 for and against us. 3586 02:18:02,860 --> 02:18:02,954 There are a few certainties in 3587 02:18:02,954 --> 02:18:07,154 life We know a couple of them 3588 02:18:07,391 --> 02:18:08,159 death taxes and I'll add a 3589 02:18:08,159 --> 02:18:11,295 third sdg in asking to raise 3590 02:18:11,295 --> 02:18:11,996 their rates. 3591 02:18:11,996 --> 02:18:12,664 300,000 people at least cannot 3592 02:18:12,664 --> 02:18:15,664 afford to pay their higher 3593 02:18:16,534 --> 02:18:17,301 rates here in San Diego. 3594 02:18:17,301 --> 02:18:17,701 We pay the highest rates in 3595 02:18:17,701 --> 02:18:19,701 the country. 3596 02:18:21,406 --> 02:18:22,172 So with certainty when I heard 3597 02:18:22,172 --> 02:18:22,907 the report on my way in today 3598 02:18:22,907 --> 02:18:26,444 and listen to the report saying 3599 02:18:26,444 --> 02:18:27,244 an estimated 3% rate increase 3600 02:18:27,244 --> 02:18:27,712 would even out over time i 3601 02:18:27,712 --> 02:18:29,712 think you're way 3602 02:18:31,916 --> 02:18:32,350 underestimating what us intends 3603 02:18:32,350 --> 02:18:33,184 to do. 3604 02:18:33,184 --> 02:18:33,885 So in the interest of time I 3605 02:18:33,885 --> 02:18:34,185 will just point out one more 3606 02:18:34,185 --> 02:18:36,185 thing. 3607 02:18:38,689 --> 02:18:39,230 Working against us is one 3608 02:18:39,230 --> 02:18:39,724 culprit. 3609 02:18:39,724 --> 02:18:42,724 You have received $5,000 as of 3610 02:18:43,561 --> 02:18:44,620 MARCH 31st from ibew for your 3611 02:18:44,620 --> 02:18:44,729 run for Congress. 3612 02:18:44,729 --> 02:18:45,530 I would ask that you please 3613 02:18:45,530 --> 02:18:48,266 recuse yourself from voting on 3614 02:18:48,266 --> 02:18:49,234 this. 3615 02:18:49,234 --> 02:18:50,100 >> I think you have a conflict 3616 02:18:50,100 --> 02:18:53,601 of interest and thank you for 3617 02:18:54,720 --> 02:18:54,839 your time. 3618 02:18:54,839 --> 02:18:55,540 >> Okay, take it easy. 3619 02:18:55,540 --> 02:18:58,540 This is an information item. 3620 02:18:59,344 --> 02:19:00,440 There is no voting. 3621 02:19:00,440 --> 02:19:03,440 Dori Brueggemann You do have 3622 02:19:06,551 --> 02:19:09,892 time ceded to you by Barbara I 3623 02:19:09,892 --> 02:19:10,820 have a rose Okay you have two 3624 02:19:10,820 --> 02:19:10,251 minutes. 3625 02:19:10,251 --> 02:19:10,432 Please begin. 3626 02:19:10,432 --> 02:19:10,722 >> Good afternoon Council I'm 3627 02:19:10,722 --> 02:19:11,423 Dory. 3628 02:19:11,423 --> 02:19:14,423 I'm an executive board member 3629 02:19:15,193 --> 02:19:15,793 of Public Power San Diego and 3630 02:19:15,793 --> 02:19:16,461 some of the points I had 3631 02:19:16,461 --> 02:19:19,461 written down here today have 3632 02:19:19,798 --> 02:19:20,980 already been said so I'll skip 3633 02:19:20,980 --> 02:19:20,966 those. 3634 02:19:20,966 --> 02:19:21,666 But I wanted to read a couple 3635 02:19:21,666 --> 02:19:24,666 of quotes from the feasibility 3636 02:19:25,270 --> 02:19:25,937 study phase two The first quote 3637 02:19:25,937 --> 02:19:28,937 that I have here is 3638 02:19:30,842 --> 02:19:31,543 the financial risks while real 3639 02:19:31,543 --> 02:19:32,144 are manageable through careful 3640 02:19:32,144 --> 02:19:34,144 planning and execution. 3641 02:19:35,814 --> 02:19:36,448 The municipal electric utility 3642 02:19:36,448 --> 02:19:36,948 remains viable even under 3643 02:19:36,948 --> 02:19:38,948 adverse scenarios. 3644 02:19:41,987 --> 02:19:42,621 The bottom line is that this 3645 02:19:42,621 --> 02:19:42,988 report shows that this is 3646 02:19:42,988 --> 02:19:43,688 feasible. 3647 02:19:43,688 --> 02:19:47,288 This quote also tells us that 3648 02:19:47,592 --> 02:19:48,293 when we build a public utility 3649 02:19:48,293 --> 02:19:48,927 we are building a domain where 3650 02:19:48,927 --> 02:19:51,927 success lies in our hands. 3651 02:19:53,365 --> 02:19:54,650 And I want to say there's been 3652 02:19:54,650 --> 02:19:54,365 a lot of fear mongering here 3653 02:19:54,365 --> 02:19:55,660 today. 3654 02:19:55,660 --> 02:19:55,434 I also just want to shout out 3655 02:19:55,434 --> 02:19:57,434 thank you. 3656 02:19:58,737 --> 02:19:59,471 Britney says for 3657 02:19:59,471 --> 02:20:00,172 the fearmongering directly from 3658 02:20:00,172 --> 02:20:00,872 sd Janey She did not identify 3659 02:20:00,872 --> 02:20:03,542 herself but she does work for 3660 02:20:03,542 --> 02:20:04,342 any. 3661 02:20:04,342 --> 02:20:08,542 I want to talk about the risk 3662 02:20:09,614 --> 02:20:12,883 of not making the choice to 3663 02:20:12,883 --> 02:20:13,540 switch to public power instead 3664 02:20:13,540 --> 02:20:14,854 making the choice to stay 3665 02:20:14,854 --> 02:20:15,554 the course where we are hoping 3666 02:20:15,554 --> 02:20:16,221 that legislative reform or cpc 3667 02:20:16,221 --> 02:20:19,221 reform will somehow fix this 3668 02:20:20,291 --> 02:20:21,159 problem. 3669 02:20:21,159 --> 02:20:21,426 The cbc is not going to save 3670 02:20:21,426 --> 02:20:23,426 us. 3671 02:20:26,431 --> 02:20:27,320 That's not our turf. 3672 02:20:27,320 --> 02:20:29,320 That's Sdrinis turf. 3673 02:20:32,300 --> 02:20:32,738 One of our allies over here had 3674 02:20:32,738 --> 02:20:33,338 a great example of the way that 3675 02:20:33,338 --> 02:20:35,338 they exploit loopholes. 3676 02:20:37,809 --> 02:20:38,477 Any any roadblock we put in 3677 02:20:38,477 --> 02:20:39,311 their way they will exploit. 3678 02:20:39,311 --> 02:20:42,814 We are not winning as much as 3679 02:20:42,814 --> 02:20:43,548 we need to be to fix 3680 02:20:43,548 --> 02:20:47,148 the problem at the state level. 3681 02:20:47,822 --> 02:20:48,620 But the point is that public 3682 02:20:48,620 --> 02:20:49,321 power is not uniquely risky And 3683 02:20:49,321 --> 02:20:50,550 also we're lucky that we have 3684 02:20:50,550 --> 02:20:54,260 this option that we are a city 3685 02:20:54,260 --> 02:20:54,760 and we can actually do 3686 02:20:54,760 --> 02:20:55,360 something significant to make a 3687 02:20:55,360 --> 02:20:58,360 change and get out under 3688 02:20:59,731 --> 02:21:00,766 the thumb of Jeannie. 3689 02:21:00,766 --> 02:21:01,366 So I want to echo what my ally 3690 02:21:01,366 --> 02:21:03,766 Patricia and Diego said. 3691 02:21:06,605 --> 02:21:09,500 We can do this. 3692 02:21:09,900 --> 02:21:09,276 >> We can work together. 3693 02:21:09,276 --> 02:21:09,455 This is a growing movement. 3694 02:21:09,455 --> 02:21:11,910 And don't let the fear 3695 02:21:11,910 --> 02:21:12,611 mongering get to you. 3696 02:21:12,611 --> 02:21:15,611 That does conclude your time. 3697 02:21:29,461 --> 02:21:31,461 Omar Walter Nadji. 3698 02:21:34,848 --> 02:21:35,190 One minute. 3699 02:21:35,190 --> 02:21:35,193 One minute. 3700 02:21:35,193 --> 02:21:35,378 Yes. 3701 02:21:35,378 --> 02:21:35,701 So you said you uniquely 3702 02:21:35,701 --> 02:21:36,234 positioned to chart a different 3703 02:21:36,234 --> 02:21:36,668 course with national 3704 02:21:36,668 --> 02:21:38,668 consequences. 3705 02:21:40,105 --> 02:21:40,806 Climate is one of the greatest 3706 02:21:40,806 --> 02:21:41,173 natural resources anywhere in 3707 02:21:41,173 --> 02:21:41,841 the world. 3708 02:21:41,841 --> 02:21:44,841 We have an abundant sunshine 3709 02:21:45,878 --> 02:21:46,412 growing clean energy sector, 3710 02:21:46,412 --> 02:21:47,146 world class research 3711 02:21:47,146 --> 02:21:49,546 institutions and the population 3712 02:21:51,984 --> 02:21:52,418 has consistently embraced 3713 02:21:52,418 --> 02:21:53,840 innovations. 3714 02:21:53,840 --> 02:21:53,786 We're not simply capable of 3715 02:21:53,786 --> 02:21:56,186 generating enough clean energy 3716 02:21:57,923 --> 02:21:58,324 to power our homes and 3717 02:21:58,324 --> 02:21:59,240 businesses. 3718 02:21:59,240 --> 02:21:59,758 We have potential to become a 3719 02:21:59,758 --> 02:22:02,758 net producer of energy creating 3720 02:22:05,163 --> 02:22:08,163 economic value that remains in 3721 02:22:09,327 --> 02:22:09,507 our region rather than leaving 3722 02:22:09,507 --> 02:22:09,835 it. 3723 02:22:09,835 --> 02:22:10,502 Decisions being made right now 3724 02:22:10,502 --> 02:22:11,300 will determine who benefits 3725 02:22:11,300 --> 02:22:13,300 from this growth. 3726 02:22:16,375 --> 02:22:19,375 This opportunity will the value 3727 02:22:21,531 --> 02:22:21,738 created by this transformation 3728 02:22:21,738 --> 02:22:22,281 of our system remain here in 3729 02:22:22,281 --> 02:22:22,948 San Diego reinvested in 3730 02:22:22,948 --> 02:22:23,549 affordability, reliability, 3731 02:22:23,549 --> 02:22:23,949 infrastructure and local 3732 02:22:23,949 --> 02:22:25,949 priorities? 3733 02:22:28,387 --> 02:22:29,210 Or will it continue to flow 3734 02:22:29,210 --> 02:22:29,689 primarily towards a system 3735 02:22:29,689 --> 02:22:30,220 designed around shareholder 3736 02:22:30,220 --> 02:22:32,220 returns? 3737 02:22:34,327 --> 02:22:34,861 We have every incentive to 3738 02:22:34,861 --> 02:22:36,861 preserve this model. 3739 02:22:41,701 --> 02:22:45,384 If we were part of this study 3740 02:22:45,384 --> 02:22:45,555 well we that's an investor 3741 02:22:45,555 --> 02:22:46,806 owned utility understand that. 3742 02:22:46,806 --> 02:22:47,306 But as you guys represent us 3743 02:22:47,306 --> 02:22:49,306 the citizens your 3744 02:22:53,546 --> 02:22:55,946 responsibility is about what 3745 02:22:56,932 --> 02:22:59,585 serves San Diego is best. 3746 02:22:59,585 --> 02:22:59,919 Sorry I'm not professional 3747 02:22:59,919 --> 02:23:00,586 speech. 3748 02:23:00,586 --> 02:23:04,186 Is my first speech in years. 3749 02:23:04,991 --> 02:23:05,491 But anyway I think this is a 3750 02:23:05,491 --> 02:23:06,158 test. 3751 02:23:06,158 --> 02:23:06,792 The biggest question is ask 3752 02:23:06,792 --> 02:23:09,192 whether the generation of 3753 02:23:11,230 --> 02:23:11,864 wealth created by the energy 3754 02:23:11,864 --> 02:23:12,531 economy should be captured 3755 02:23:12,531 --> 02:23:15,531 locally and used to benefit 3756 02:23:17,236 --> 02:23:18,700 communities that created it. 3757 02:23:18,700 --> 02:23:18,671 Or are we to continue to give 3758 02:23:18,671 --> 02:23:21,671 it to us to Junior? 3759 02:23:24,143 --> 02:23:24,611 This isn't their decision. 3760 02:23:24,611 --> 02:23:25,111 >> Thank you. 3761 02:23:25,111 --> 02:23:25,778 That does conclude 3762 02:23:25,778 --> 02:23:28,178 the development session but 3763 02:23:34,654 --> 02:23:36,654 please keep. 3764 02:23:41,360 --> 02:23:41,928 >> I just walk to the parking 3765 02:23:41,928 --> 02:23:42,562 structure with former 3766 02:23:42,562 --> 02:23:44,562 Councilmember Mark Kersey. 3767 02:23:46,432 --> 02:23:47,133 >> He was kind enough to listen 3768 02:23:47,133 --> 02:23:47,834 to my questions about why 3769 02:23:47,834 --> 02:23:51,434 the city can't do the simplest 3770 02:23:53,106 --> 02:23:53,706 things to oversee the many 3771 02:23:53,706 --> 02:23:54,274 businesses that operate 3772 02:23:54,274 --> 02:23:56,274 throughout this city. 3773 02:23:59,780 --> 02:23:59,846 Do you know what he said to me? 3774 02:23:59,846 --> 02:24:03,446 He said there was too much 3775 02:24:03,917 --> 02:24:04,584 going on in this city for 3776 02:24:04,584 --> 02:24:05,185 the council members to deal 3777 02:24:05,185 --> 02:24:08,185 with all the details in 3778 02:24:09,923 --> 02:24:10,824 the city. 3779 02:24:10,824 --> 02:24:11,191 Too much going on for you to 3780 02:24:11,191 --> 02:24:13,191 deal with. 3781 02:24:16,229 --> 02:24:17,970 Now I'm not an expert on energy 3782 02:24:17,970 --> 02:24:17,764 but I have become an expert on 3783 02:24:17,764 --> 02:24:19,764 business interests hijacking 3784 02:24:22,768 --> 02:24:23,203 the city government for their 3785 02:24:23,203 --> 02:24:23,937 own purposes. 3786 02:24:23,937 --> 02:24:27,537 If you have any doubt, look 3787 02:24:30,176 --> 02:24:30,944 into how the city That's you. 3788 02:24:30,944 --> 02:24:31,611 Joe Lacob and Todd Lauria have 3789 02:24:31,611 --> 02:24:32,110 mismanaged the Torrey Pines 3790 02:24:32,110 --> 02:24:34,110 Gloria port. 3791 02:24:35,114 --> 02:24:35,515 Thank you. 3792 02:24:35,515 --> 02:24:36,182 Thank you. 3793 02:24:36,182 --> 02:24:38,582 Our final in-person speaker 3794 02:24:46,259 --> 02:24:47,930 will be Anthony Ralphs. 3795 02:24:47,930 --> 02:24:47,794 >> Good afternoon City Council. 3796 02:24:47,794 --> 02:24:51,394 I want to remind everybody in 3797 02:24:52,331 --> 02:24:52,966 this room that we all share one 3798 02:24:52,966 --> 02:24:53,633 thing in common We're all 3799 02:24:53,633 --> 02:24:56,633 getting ripped off by Jionni 3800 02:24:57,370 --> 02:24:57,771 and it continues every day year 3801 02:24:57,771 --> 02:24:59,771 after year. 3802 02:25:01,541 --> 02:25:02,275 $1 billion in profits last year 3803 02:25:02,275 --> 02:25:02,609 Almost a billion the year 3804 02:25:02,609 --> 02:25:03,209 before. 3805 02:25:03,209 --> 02:25:03,977 I'm sick to my stomach. 3806 02:25:03,977 --> 02:25:08,177 I'm tired of not being able to 3807 02:25:08,414 --> 02:25:09,282 pay my energy bills. 3808 02:25:09,282 --> 02:25:09,916 I'm tired of the people in my 3809 02:25:09,916 --> 02:25:10,450 city not being able to pay 3810 02:25:10,450 --> 02:25:12,450 their energy bills. 3811 02:25:12,819 --> 02:25:13,487 I'm tired of one quarter to a 3812 02:25:13,487 --> 02:25:14,187 fifth of the people in this 3813 02:25:14,187 --> 02:25:17,787 city not being able to afford 3814 02:25:19,250 --> 02:25:19,593 meeting their energy bills at 3815 02:25:19,593 --> 02:25:20,327 the end of the month. 3816 02:25:20,327 --> 02:25:20,894 I'm tired of seeing a corporate 3817 02:25:20,894 --> 02:25:23,294 monopoly and its greed 3818 02:25:25,132 --> 02:25:25,699 prioritized over the people 3819 02:25:25,699 --> 02:25:26,366 that live in the city. 3820 02:25:26,366 --> 02:25:27,330 I am a union member. 3821 02:25:27,330 --> 02:25:30,330 I'm a member of iww, 3822 02:25:30,337 --> 02:25:30,970 the Industrial Workers of 3823 02:25:30,970 --> 02:25:31,672 the World so I understand 3824 02:25:31,672 --> 02:25:32,105 the priority that labor places 3825 02:25:32,105 --> 02:25:34,105 in our lives. 3826 02:25:37,310 --> 02:25:38,440 But I also understand that only 3827 02:25:38,440 --> 02:25:38,745 half of the people in this room 3828 02:25:38,745 --> 02:25:39,446 are getting paid handsomely to 3829 02:25:39,446 --> 02:25:42,115 be here And it's not those of 3830 02:25:42,115 --> 02:25:46,315 us who hate sd Jeanie for free. 3831 02:25:47,854 --> 02:25:48,321 >> Thank you. 3832 02:25:48,321 --> 02:25:49,880 >> Thank you. 3833 02:25:49,880 --> 02:25:52,880 We also received two speaker 3834 02:25:53,994 --> 02:25:54,694 slips from individuals wishing 3835 02:25:54,694 --> 02:25:55,295 to register their position in 3836 02:25:55,295 --> 02:25:55,963 favor but not speak from 3837 02:25:55,963 --> 02:25:58,363 Brandon Reynolds and Korina 3838 02:26:02,169 --> 02:26:02,903 Vega. 3839 02:26:02,903 --> 02:26:03,237 That concludes in-person public 3840 02:26:03,237 --> 02:26:03,904 comment. 3841 02:26:03,904 --> 02:26:04,571 I've started the five minute 3842 02:26:04,571 --> 02:26:06,971 timer and council chambers. 3843 02:26:08,375 --> 02:26:09,760 We will now turn to the virtual 3844 02:26:09,760 --> 02:26:09,643 queue in which there are 3845 02:26:09,643 --> 02:26:11,643 currently ten speakers 3846 02:26:13,914 --> 02:26:15,914 requesting to speak. 3847 02:26:26,960 --> 02:26:27,294 We will begin with Eric Revolt 3848 02:26:27,294 --> 02:26:28,280 Zachary. 3849 02:26:28,280 --> 02:26:30,428 Imagine every single family 3850 02:26:32,566 --> 02:26:33,233 house and duplex in San Diego 3851 02:26:33,233 --> 02:26:33,867 covered with twice the solar 3852 02:26:33,867 --> 02:26:36,867 panels there are now and 3853 02:26:38,939 --> 02:26:39,573 they're going to get paid three 3854 02:26:39,573 --> 02:26:42,573 times more for the energy. 3855 02:26:44,440 --> 02:26:44,545 Imagine Fashion Valley covered 3856 02:26:44,545 --> 02:26:45,279 in solar panels. 3857 02:26:45,279 --> 02:26:45,613 Mission Valley covered in solar 3858 02:26:45,613 --> 02:26:47,613 panels. 3859 02:26:50,350 --> 02:26:50,751 The parking drives all their 3860 02:26:50,751 --> 02:26:51,385 green power. 3861 02:26:51,385 --> 02:26:53,785 And imagine every trolley 3862 02:26:56,891 --> 02:26:57,591 station covered in providing 3863 02:26:57,591 --> 02:27:01,191 shade and solar energy to feed 3864 02:27:02,396 --> 02:27:03,630 the dc motors on the trolley 3865 02:27:03,630 --> 02:27:06,630 instead of using ac dropping 3866 02:27:08,535 --> 02:27:09,690 down to dc for them directly 3867 02:27:09,690 --> 02:27:09,670 with solar panels on 3868 02:27:09,670 --> 02:27:12,700 the trolley system Even 3869 02:27:13,707 --> 02:27:14,108 the tracks elevator from 3870 02:27:14,108 --> 02:27:14,775 the tracks. 3871 02:27:14,775 --> 02:27:18,375 We're now doing ac power and 3872 02:27:20,470 --> 02:27:20,714 turning that ac power into dc 3873 02:27:20,714 --> 02:27:21,515 causing energy when we can 3874 02:27:21,515 --> 02:27:24,515 generate it from solar panels 3875 02:27:27,388 --> 02:27:27,755 right there on the trolley 3876 02:27:27,755 --> 02:27:28,422 stations. 3877 02:27:28,422 --> 02:27:31,422 >> No all involved is solar. 3878 02:27:32,193 --> 02:27:32,893 Thank you. 3879 02:27:32,893 --> 02:27:33,694 That does conclude your time. 3880 02:27:33,694 --> 02:27:37,365 We will go next to Eric Proval, 3881 02:27:37,365 --> 02:27:37,765 Paul Jones Eric. 3882 02:27:37,765 --> 02:27:38,432 >> Perfect. 3883 02:27:38,432 --> 02:27:41,432 Thank you so much counsel. 3884 02:27:44,238 --> 02:27:44,939 My name is Eric Proval and I am 3885 02:27:44,939 --> 02:27:45,606 the ceo of the San Diego North 3886 02:27:45,606 --> 02:27:47,606 Economic Development Council 3887 02:27:49,977 --> 02:27:50,711 representing an area North of 3888 02:27:50,711 --> 02:27:51,412 that sa 56 with more than 1 3889 02:27:51,412 --> 02:27:51,712 million residents and 500,000 3890 02:27:51,712 --> 02:27:53,712 jobs. 3891 02:27:56,350 --> 02:27:56,984 I urge caution and ask that 3892 02:27:56,984 --> 02:27:57,718 the city pause this effort 3893 02:27:57,718 --> 02:27:58,286 until the regional implications 3894 02:27:58,286 --> 02:28:00,286 are better understood. 3895 02:28:01,689 --> 02:28:02,356 The reported self acknowledges 3896 02:28:02,356 --> 02:28:02,923 that the electric system was 3897 02:28:02,923 --> 02:28:03,324 not built around city 3898 02:28:03,324 --> 02:28:05,324 boundaries. 3899 02:28:07,561 --> 02:28:08,229 Numerous substations and other 3900 02:28:08,229 --> 02:28:08,896 assets serve customers both 3901 02:28:08,896 --> 02:28:11,896 inside and outside the city. 3902 02:28:12,900 --> 02:28:13,534 Yet the report appears to 3903 02:28:13,534 --> 02:28:14,168 assume that separating and 3904 02:28:14,168 --> 02:28:14,669 operating these assets can 3905 02:28:14,669 --> 02:28:15,102 occur smoothly and 3906 02:28:15,102 --> 02:28:17,102 cooperatively. 3907 02:28:19,340 --> 02:28:19,907 That is a significant 3908 02:28:19,907 --> 02:28:20,575 assumption with major 3909 02:28:20,575 --> 02:28:21,108 implications for reliability 3910 02:28:21,108 --> 02:28:21,509 costs in neighboring 3911 02:28:21,509 --> 02:28:23,509 communities. 3912 02:28:25,460 --> 02:28:25,780 But most importantly the report 3913 02:28:25,780 --> 02:28:26,414 does not adequately explain how 3914 02:28:26,414 --> 02:28:28,814 a municipal utility would 3915 02:28:30,985 --> 02:28:31,652 participate in regional 3916 02:28:31,652 --> 02:28:32,253 wildfire prevention, weather 3917 02:28:32,253 --> 02:28:32,854 monitoring and emergency 3918 02:28:32,854 --> 02:28:34,854 operations before moving 3919 02:28:37,250 --> 02:28:37,725 forward. 3920 02:28:37,725 --> 02:28:38,426 North County communities 3921 02:28:38,426 --> 02:28:39,930 deserve a clear understanding 3922 02:28:39,930 --> 02:28:42,930 of how municipal this action 3923 02:28:42,597 --> 02:28:43,264 would affect them. 3924 02:28:43,264 --> 02:28:46,264 Thank you for your comments. 3925 02:28:52,106 --> 02:28:52,840 Kathleen Levitt Thank you. 3926 02:28:52,840 --> 02:28:53,374 Good afternoon and thank you to 3927 02:28:53,374 --> 02:28:53,975 everybody who spoke. 3928 02:28:53,975 --> 02:28:55,975 Governor Newsom allowed 3929 02:28:58,379 --> 02:29:00,779 California companies to tax 3930 02:29:02,617 --> 02:29:03,351 taxpayer dollars from the state 3931 02:29:03,351 --> 02:29:04,510 $21 billion while fund wildfire 3932 02:29:04,510 --> 02:29:07,651 fund to pay for their damages, 3933 02:29:09,457 --> 02:29:10,258 fines and liabilities for fires 3934 02:29:10,258 --> 02:29:10,992 that were directly tied to it. 3935 02:29:10,992 --> 02:29:13,992 For every dollar the utility 3936 02:29:15,960 --> 02:29:15,763 spent building infrastructure 3937 02:29:15,763 --> 02:29:18,763 they were allowed to charge 3938 02:29:19,667 --> 02:29:20,401 customers an additional 10% in 3939 02:29:20,401 --> 02:29:21,102 profits for their shareholders. 3940 02:29:21,102 --> 02:29:23,502 They routinely their priority 3941 02:29:25,273 --> 02:29:25,907 is profit for their executives 3942 02:29:25,907 --> 02:29:26,541 and shareholders and they 3943 02:29:26,541 --> 02:29:28,541 routinely disregard public 3944 02:29:31,479 --> 02:29:32,180 priorities They disregard while 3945 02:29:32,180 --> 02:29:32,814 diverse habitats that support 3946 02:29:32,814 --> 02:29:34,814 migratory birds, reptiles, 3947 02:29:38,520 --> 02:29:38,370 pollinators and they're ignored 3948 02:29:38,370 --> 02:29:39,530 . 3949 02:29:39,530 --> 02:29:42,530 On behalf of permitting if 3950 02:29:43,391 --> 02:29:44,159 figure you need to put their 3951 02:29:44,159 --> 02:29:44,859 power lines they now want to 3952 02:29:44,859 --> 02:29:47,859 put their power lines directly 3953 02:29:49,965 --> 02:29:50,732 through the anza-borrego Park 3954 02:29:50,732 --> 02:29:54,332 that is a designated park in 3955 02:29:55,470 --> 02:29:55,776 perpetuity to protect Thank 3956 02:29:55,776 --> 02:29:56,470 you. 3957 02:29:56,470 --> 02:29:59,470 That does conclude your time. 3958 02:30:01,342 --> 02:30:03,742 Francis Yasmeen Matlala Hello. 3959 02:30:06,414 --> 02:30:07,480 So first it's I think it's 3960 02:30:07,480 --> 02:30:09,448 important for everyone to 3961 02:30:12,487 --> 02:30:13,221 realize that like the entire 3962 02:30:13,221 --> 02:30:13,922 state of Nebraska has municipal 3963 02:30:13,922 --> 02:30:17,522 run power is is not impossible 3964 02:30:18,193 --> 02:30:18,894 task any government can do it 3965 02:30:18,894 --> 02:30:19,561 if they just create the public 3966 02:30:19,561 --> 02:30:23,161 the political will to do it. 3967 02:30:23,532 --> 02:30:24,167 I think that every one of 3968 02:30:24,167 --> 02:30:24,800 the council members should 3969 02:30:24,800 --> 02:30:27,200 attend The American Public 3970 02:30:29,638 --> 02:30:30,305 Power Association's annual 3971 02:30:30,305 --> 02:30:31,106 conference and you can learn 3972 02:30:31,106 --> 02:30:34,706 about and meet cities of people 3973 02:30:35,377 --> 02:30:35,944 from cities all over 3974 02:30:35,944 --> 02:30:36,611 the country that enjoy 3975 02:30:36,611 --> 02:30:37,312 the benefits of public power 3976 02:30:37,312 --> 02:30:40,912 that we are only dreaming of. 3977 02:30:41,650 --> 02:30:45,850 I want to state that the sdg 3978 02:30:46,655 --> 02:30:47,289 business model it's not about 3979 02:30:47,289 --> 02:30:47,956 security or affordability. 3980 02:30:47,956 --> 02:30:48,590 It's about profit And even 3981 02:30:48,590 --> 02:30:50,990 the way they're designing 3982 02:30:53,462 --> 02:30:54,960 the future with long 3983 02:30:54,960 --> 02:30:54,796 transmission lines out to 3984 02:30:54,796 --> 02:30:55,630 the desert is the wrong way to 3985 02:30:55,630 --> 02:30:55,731 go. 3986 02:30:55,731 --> 02:30:58,731 It's not sensible unless you 3987 02:30:59,568 --> 02:31:00,335 try and exploit people for 3988 02:31:00,335 --> 02:31:03,935 money as he takes $1 million a 3989 02:31:04,205 --> 02:31:04,806 day out of the city and 3 3990 02:31:04,806 --> 02:31:05,474 million a day out of 3991 02:31:05,474 --> 02:31:05,741 the county, it's got to stop 3992 02:31:05,741 --> 02:31:07,741 now. 3993 02:31:18,753 --> 02:31:21,753 >> Thank you, John Stump by 3994 02:31:23,859 --> 02:31:24,626 John Stone And DECEMBER 15th 3995 02:31:24,626 --> 02:31:28,226 2025 I sent the council a nine 3996 02:31:30,666 --> 02:31:31,166 point program to get out of 3997 02:31:31,166 --> 02:31:33,566 this mess with me. 3998 02:31:35,137 --> 02:31:35,871 And the key thing in this nine 3999 02:31:35,871 --> 02:31:36,472 point program which I'm sending 4000 02:31:36,472 --> 02:31:39,472 you again today is that 4001 02:31:41,777 --> 02:31:42,478 the city should create its own 4002 02:31:42,478 --> 02:31:42,744 municipal utility for its own 4003 02:31:42,744 --> 02:31:43,312 use. 4004 02:31:43,312 --> 02:31:45,712 The city currently now 4005 02:31:48,350 --> 02:31:49,217 generates its own power and 4006 02:31:49,217 --> 02:31:52,817 spends a lot of money paying 4007 02:31:53,288 --> 02:31:53,956 Genny. 4008 02:31:53,956 --> 02:31:54,623 The city could easily set up 4009 02:31:54,623 --> 02:31:57,623 its own department and that 4010 02:31:59,261 --> 02:31:59,928 would be the initial step 4011 02:31:59,928 --> 02:32:00,362 the transitional step toward 4012 02:32:00,362 --> 02:32:02,362 public power. 4013 02:32:05,634 --> 02:32:06,368 City Council Start exploring 4014 02:32:06,368 --> 02:32:09,968 where you spend money and where 4015 02:32:11,707 --> 02:32:12,308 you generate electricity now 4016 02:32:12,308 --> 02:32:13,420 and set up a separate 4017 02:32:13,420 --> 02:32:16,420 department To watch that please 4018 02:32:18,447 --> 02:32:19,147 follow the direction of my 4019 02:32:19,147 --> 02:32:21,547 mother at DECEMBER 15th 2025. 4020 02:32:24,119 --> 02:32:24,520 >> Thank you very much. 4021 02:32:24,520 --> 02:32:25,287 Thank you. 4022 02:32:25,287 --> 02:32:29,425 And I please know that the five 4023 02:32:29,425 --> 02:32:30,250 minute timer has concluded with 4024 02:32:30,250 --> 02:32:30,626 eight speakers left in 4025 02:32:30,626 --> 02:32:33,626 the queue and the other 4026 02:32:33,996 --> 02:32:34,897 speakers will be taken after 4027 02:32:34,897 --> 02:32:37,897 this time The voices please 4028 02:32:41,370 --> 02:32:42,338 begin. 4029 02:32:42,338 --> 02:32:43,500 >> Hi my name is We try and set 4030 02:32:43,500 --> 02:32:45,405 the director for businesses. 4031 02:32:47,309 --> 02:32:47,743 I'm calling to support you know 4032 02:32:47,743 --> 02:32:48,577 public power. 4033 02:32:48,577 --> 02:32:52,777 I know that I also think it's 4034 02:32:54,417 --> 02:32:55,284 ironic that we need a study to 4035 02:32:55,284 --> 02:32:58,884 figure out where we should put 4036 02:32:59,355 --> 02:33:00,890 the power. 4037 02:33:00,890 --> 02:33:03,689 We all talk about the rising 4038 02:33:05,661 --> 02:33:06,462 costs of standing so much now I 4039 02:33:06,462 --> 02:33:07,163 you know, if you can find a 4040 02:33:07,163 --> 02:33:10,763 little will to make it happen, 4041 02:33:12,401 --> 02:33:13,101 it will really help a lot of us 4042 02:33:13,101 --> 02:33:13,970 reduce the cost of living here 4043 02:33:13,970 --> 02:33:18,607 and stay here And then I go it 4044 02:33:18,607 --> 02:33:19,342 is the no getting there now we 4045 02:33:19,342 --> 02:33:20,109 don't really need a study to do 4046 02:33:20,109 --> 02:33:21,745 it But now you have a study Can 4047 02:33:21,745 --> 02:33:22,110 you please move forward with 4048 02:33:22,110 --> 02:33:22,544 it? 4049 02:33:22,544 --> 02:33:24,944 That would be great. 4050 02:33:27,316 --> 02:33:28,840 Thank you. 4051 02:33:28,840 --> 02:33:28,384 Color with the last word Digits 4052 02:33:28,384 --> 02:33:30,384 88213. 4053 02:33:40,396 --> 02:33:41,164 Please begin. 4054 02:33:41,164 --> 02:33:41,863 Okay so the goal here is 4055 02:33:41,863 --> 02:33:44,863 unbelievable to get people to 4056 02:33:46,202 --> 02:33:46,869 have confidence that this board 4057 02:33:46,869 --> 02:33:47,436 will do the right thing when 4058 02:33:47,436 --> 02:33:49,836 the record of ignoring 4059 02:33:52,275 --> 02:33:52,975 the people's wishes and needs 4060 02:33:52,975 --> 02:33:53,609 are like it's been proven in 4061 02:33:53,609 --> 02:33:56,900 putting people honestly to 4062 02:33:59,480 --> 02:33:59,916 the people who are awake to any 4063 02:33:59,916 --> 02:34:00,717 and all we have We have so much 4064 02:34:00,717 --> 02:34:03,820 of our money and keep asking 4065 02:34:03,820 --> 02:34:04,487 for more But you realize that 4066 02:34:04,487 --> 02:34:06,887 this board you're addressing 4067 02:34:09,425 --> 02:34:10,930 does the same exact thing 4068 02:34:10,930 --> 02:34:10,727 honestly from sandag to 4069 02:34:10,727 --> 02:34:13,727 the county to this board. 4070 02:34:16,332 --> 02:34:17,000 I mean all these corrupt 4071 02:34:17,000 --> 02:34:17,734 government agencies they'll 4072 02:34:17,734 --> 02:34:21,934 take for it They will take from 4073 02:34:22,338 --> 02:34:22,772 us and you know, whatever 4074 02:34:22,772 --> 02:34:23,506 benefits them. 4075 02:34:23,506 --> 02:34:27,706 But I just wish, you know, more 4076 02:34:28,645 --> 02:34:29,312 people were awake to that And 4077 02:34:29,312 --> 02:34:29,913 it's it's amazing You can't 4078 02:34:29,913 --> 02:34:32,313 address us without also 4079 02:34:34,170 --> 02:34:34,484 addressing the corruption of 4080 02:34:34,484 --> 02:34:36,484 the very board. 4081 02:34:39,856 --> 02:34:40,723 Well, I got to say that. 4082 02:34:40,723 --> 02:34:43,723 Thank you, Evan Burke, please 4083 02:34:45,562 --> 02:34:46,290 begin. 4084 02:34:46,290 --> 02:34:47,630 >> Hello. 4085 02:34:47,630 --> 02:34:50,100 I want to speak in favor of 4086 02:34:50,100 --> 02:34:50,867 public power first. 4087 02:34:50,867 --> 02:34:51,534 There is no benefit to a 4088 02:34:51,534 --> 02:34:53,934 private monopoly like Genie. 4089 02:34:56,506 --> 02:34:57,206 There's no need to even pretend 4090 02:34:57,206 --> 02:34:57,607 to little cost with no 4091 02:34:57,607 --> 02:34:58,308 competition. 4092 02:34:58,308 --> 02:34:58,975 Meanwhile, their insanely high 4093 02:34:58,975 --> 02:35:02,212 power costs make our cost of 4094 02:35:02,212 --> 02:35:02,846 living more expensive and 4095 02:35:02,846 --> 02:35:03,279 contribute to issues like 4096 02:35:03,279 --> 02:35:04,140 homelessness. 4097 02:35:04,140 --> 02:35:07,614 I found the fear mongering that 4098 02:35:08,351 --> 02:35:09,850 I've heard outrageous. 4099 02:35:09,850 --> 02:35:09,786 We hear that we don't have 4100 02:35:09,786 --> 02:35:10,520 enough data but what more data 4101 02:35:10,520 --> 02:35:13,990 do we need when dozens of other 4102 02:35:13,990 --> 02:35:14,691 cities have already done this 4103 02:35:14,691 --> 02:35:15,458 and succeeded, we were warned 4104 02:35:15,458 --> 02:35:16,126 that San Diego will have to pay 4105 02:35:16,126 --> 02:35:18,526 new costs like insurance 4106 02:35:20,963 --> 02:35:21,731 premiums. 4107 02:35:21,731 --> 02:35:22,399 But San Diegans are already 4108 02:35:22,399 --> 02:35:25,399 paying those costs and more 4109 02:35:25,635 --> 02:35:26,303 Whenever Janey turns a profit 4110 02:35:26,303 --> 02:35:27,300 the definition of madness is 4111 02:35:27,300 --> 02:35:27,637 doing the same thing over and 4112 02:35:27,637 --> 02:35:28,138 over again and expecting a 4113 02:35:28,138 --> 02:35:30,138 different result. 4114 02:35:32,876 --> 02:35:33,543 We've seen what I see Genie can 4115 02:35:33,543 --> 02:35:34,177 do and will do and now's 4116 02:35:34,177 --> 02:35:37,177 the time to try something 4117 02:35:38,782 --> 02:35:39,282 different or just a new form of 4118 02:35:39,282 --> 02:35:39,749 pop pop power. 4119 02:35:39,749 --> 02:35:40,150 >> Thank you. 4120 02:35:40,150 --> 02:35:42,150 Thank you. 4121 02:35:47,457 --> 02:35:47,858 Natalie Rashid, please begin. 4122 02:35:47,858 --> 02:35:49,858 Hi. 4123 02:35:54,640 --> 02:35:54,531 Natalie Rushdie Here I am 4124 02:35:54,531 --> 02:35:55,132 District seven. 4125 02:35:55,132 --> 02:35:58,132 I want to bring couple 4126 02:35:59,769 --> 02:36:00,370 attention to one number that 4127 02:36:00,370 --> 02:36:01,380 explains a lot of what's 4128 02:36:01,380 --> 02:36:01,338 happening with our electric 4129 02:36:01,338 --> 02:36:03,338 bills. 4130 02:36:05,876 --> 02:36:08,876 You see just authorized a 4131 02:36:10,213 --> 02:36:10,814 return on equity of nearly 10% 4132 02:36:10,814 --> 02:36:11,481 for 2026 to 2028. 4133 02:36:11,481 --> 02:36:12,182 That's the profit percentage 4134 02:36:12,182 --> 02:36:14,582 Sempra's shareholders earn not 4135 02:36:16,320 --> 02:36:16,954 on selling us electricity but 4136 02:36:16,954 --> 02:36:17,287 on infrastructure spending 4137 02:36:17,287 --> 02:36:17,955 itself. 4138 02:36:17,955 --> 02:36:21,555 The more he spends on poles 4139 02:36:22,226 --> 02:36:22,926 wires and upgrades the more 4140 02:36:22,926 --> 02:36:23,560 profit profit it earns because 4141 02:36:23,560 --> 02:36:26,560 that return is applied to 4142 02:36:28,165 --> 02:36:28,765 the entire faith based 4143 02:36:28,765 --> 02:36:29,499 independent economics at 4144 02:36:29,499 --> 02:36:31,899 the American Economic Liberties 4145 02:36:34,438 --> 02:36:35,105 Project testified that their 4146 02:36:35,105 --> 02:36:35,739 fair return based on current 4147 02:36:35,739 --> 02:36:36,340 market conditions would be 4148 02:36:36,340 --> 02:36:39,340 closer to 6% and the gap 4149 02:36:39,643 --> 02:36:40,344 between that and what was 4150 02:36:40,344 --> 02:36:42,744 actually authorized comes out 4151 02:36:44,681 --> 02:36:45,282 to 4.4 billion in overcharges 4152 02:36:45,282 --> 02:36:45,849 in 2026 alone across 4153 02:36:45,849 --> 02:36:46,216 California's immediate 4154 02:36:46,216 --> 02:36:48,216 utilities. 4155 02:36:50,320 --> 02:36:51,210 This is exactly why the cities 4156 02:36:51,210 --> 02:36:54,210 on Public Power study found 4157 02:36:56,126 --> 02:36:56,794 that most Thank you that does 4158 02:36:56,794 --> 02:36:57,940 conclude your tired electric 4159 02:36:57,940 --> 02:36:59,940 grid. 4160 02:36:59,960 --> 02:37:02,960 Next speaker is Jordan Lewis. 4161 02:37:05,936 --> 02:37:06,804 Please begin. 4162 02:37:06,804 --> 02:37:07,104 >> Hi, my name is Katherine 4163 02:37:07,104 --> 02:37:09,104 Mock. 4164 02:37:11,442 --> 02:37:12,142 I'm a resident of San San Diego 4165 02:37:12,142 --> 02:37:13,100 County in North County and I'm 4166 02:37:13,100 --> 02:37:17,147 an sd g and customer and I 4167 02:37:17,147 --> 02:37:17,848 support acquiring sd Janney 4168 02:37:17,848 --> 02:37:18,515 Infrastructure and could bring 4169 02:37:18,515 --> 02:37:19,116 it to a publicly owned power 4170 02:37:19,116 --> 02:37:21,116 utility particularly for 4171 02:37:22,519 --> 02:37:23,220 concerns like affordability and 4172 02:37:23,220 --> 02:37:23,587 transitioning to zero emission 4173 02:37:23,587 --> 02:37:25,587 utilities. 4174 02:37:28,559 --> 02:37:29,293 Well it's expensive to acquire 4175 02:37:29,293 --> 02:37:29,927 a managed utility and that cost 4176 02:37:29,927 --> 02:37:30,261 will be footed by us rate 4177 02:37:30,261 --> 02:37:30,961 payers. 4178 02:37:30,961 --> 02:37:33,961 We're already footing the bill 4179 02:37:34,965 --> 02:37:35,633 for sd duty and on top of that, 4180 02:37:35,633 --> 02:37:36,300 as others have pointed out, 4181 02:37:36,300 --> 02:37:38,700 we're paying the additional 4182 02:37:39,770 --> 02:37:40,404 cost of a for profit entity 4183 02:37:40,404 --> 02:37:41,105 including the hundreds of 4184 02:37:41,105 --> 02:37:44,105 millions of profits each year 4185 02:37:45,750 --> 02:37:45,643 that sd only makes as well as 4186 02:37:45,643 --> 02:37:46,243 the 22.2 million total 4187 02:37:46,243 --> 02:37:46,911 compensation for Jeffrey 4188 02:37:46,911 --> 02:37:49,911 Martin, Sempra ceo That was 4189 02:37:50,281 --> 02:37:51,480 last year's number. 4190 02:37:51,480 --> 02:37:51,715 So for these reasons I fully 4191 02:37:51,715 --> 02:37:54,115 support advancing a publicly 4192 02:37:55,786 --> 02:37:56,454 owned utility for San Diego. 4193 02:37:56,454 --> 02:37:57,121 Please continue this effort. 4194 02:37:57,121 --> 02:37:57,588 Do what you can to reduce 4195 02:37:57,588 --> 02:37:58,255 the uncertainty. 4196 02:37:58,255 --> 02:38:00,655 Incorporate the concerns of 4197 02:38:01,580 --> 02:38:01,759 some of the folks who spoken 4198 02:38:01,759 --> 02:38:02,493 opposition today and complete 4199 02:38:02,493 --> 02:38:02,927 the transition to public power. 4200 02:38:02,927 --> 02:38:04,927 >> Thank you. 4201 02:38:06,731 --> 02:38:07,665 Thank you. 4202 02:38:07,665 --> 02:38:10,701 Next speaker is a caller with 4203 02:38:10,701 --> 02:38:12,701 last four digits 8700. 4204 02:38:15,873 --> 02:38:17,873 Please begin. 4205 02:38:21,412 --> 02:38:22,213 Thank you. 4206 02:38:22,213 --> 02:38:25,213 Yes, I support public power 4207 02:38:26,618 --> 02:38:27,170 also known as Power of 4208 02:38:27,170 --> 02:38:27,552 the People. 4209 02:38:27,552 --> 02:38:29,952 Here are my reasons. 4210 02:38:31,189 --> 02:38:34,789 Number one, all of you using 4211 02:38:36,394 --> 02:38:37,940 the power of your voice today. 4212 02:38:37,940 --> 02:38:40,940 Number two, trusting that all 4213 02:38:42,233 --> 02:38:42,934 of us will do a full analysis 4214 02:38:42,934 --> 02:38:43,868 of this of its ability. 4215 02:38:43,868 --> 02:38:47,468 Number three keeping an eye on 4216 02:38:48,339 --> 02:38:48,639 San Francisco as a public power 4217 02:38:48,639 --> 02:38:50,639 model. 4218 02:38:52,844 --> 02:38:53,511 This is a golden opportunity 4219 02:38:53,511 --> 02:38:55,911 for creative action outside 4220 02:38:59,384 --> 02:39:00,510 the box of sd g and e! 4221 02:39:00,510 --> 02:39:01,185 It's been a great item. 4222 02:39:01,185 --> 02:39:04,785 Thank you everybody and love to 4223 02:39:06,757 --> 02:39:07,158 all. 4224 02:39:07,158 --> 02:39:07,925 Thank you. 4225 02:39:07,925 --> 02:39:08,893 Our next speaker is a caller 4226 02:39:08,893 --> 02:39:09,159 with the last four digits to 4227 02:39:09,159 --> 02:39:11,159 265. 4228 02:39:20,104 --> 02:39:20,571 Please begin. 4229 02:39:20,571 --> 02:39:22,571 I am Diego. 4230 02:39:25,376 --> 02:39:26,430 I live in Kensington. 4231 02:39:26,430 --> 02:39:26,611 Over the last five years San 4232 02:39:26,611 --> 02:39:29,110 Diego Gas Electric has 4233 02:39:30,480 --> 02:39:30,715 appropriated an average more 4234 02:39:30,715 --> 02:39:33,115 than $800 million per year. 4235 02:39:34,952 --> 02:39:35,687 At the same time, nearly 1 in 5 4236 02:39:35,687 --> 02:39:38,687 Centurions cannot afford to pay 4237 02:39:39,791 --> 02:39:40,458 their utility bills. 4238 02:39:40,458 --> 02:39:41,326 And greed knows no end. 4239 02:39:41,326 --> 02:39:44,326 And just last week they 4240 02:39:45,960 --> 02:39:48,960 requested the rate increase of 4241 02:39:49,534 --> 02:39:50,502 8.6% at the puc. 4242 02:39:50,502 --> 02:39:54,102 This would mean an increase of 4243 02:39:54,272 --> 02:39:54,939 over $22,000,022 a month on top 4244 02:39:54,939 --> 02:39:57,939 of the already high utility 4245 02:39:58,376 --> 02:39:59,440 rates we are paying above 4246 02:39:59,440 --> 02:39:59,710 the public power Feasibility 4247 02:39:59,710 --> 02:40:02,710 study shows public power is 4248 02:40:04,115 --> 02:40:04,816 possible feasible and cheaper 4249 02:40:04,816 --> 02:40:05,383 for San Diego and the time for 4250 02:40:05,383 --> 02:40:07,783 public power is now. 4251 02:40:09,154 --> 02:40:13,354 My utility bill is like we live 4252 02:40:13,792 --> 02:40:14,459 in a 2000 square foot apartment 4253 02:40:14,459 --> 02:40:16,859 in utility bills like $250. 4254 02:40:17,195 --> 02:40:18,290 It's just ridiculous. 4255 02:40:18,290 --> 02:40:18,296 >> We need to do public art 4256 02:40:18,296 --> 02:40:20,296 now. 4257 02:40:22,667 --> 02:40:23,168 You. 4258 02:40:23,168 --> 02:40:23,935 >> Thank you. 4259 02:40:23,935 --> 02:40:24,269 Our final speakers and all of 4260 02:40:24,269 --> 02:40:26,269 Alaska. 4261 02:40:26,304 --> 02:40:26,705 Please begin. 4262 02:40:26,705 --> 02:40:28,705 Hi. 4263 02:40:31,976 --> 02:40:32,258 So I'm a resident of District 4264 02:40:32,258 --> 02:40:32,844 two. 4265 02:40:32,844 --> 02:40:34,844 Natural monopolies like 4266 02:40:37,115 --> 02:40:37,816 utilities should not be owned 4267 02:40:37,816 --> 02:40:38,416 by for profit entities because 4268 02:40:38,416 --> 02:40:40,416 without competition and 4269 02:40:41,252 --> 02:40:41,786 swimmers will always be 4270 02:40:41,786 --> 02:40:42,487 squeezed for profit. 4271 02:40:42,487 --> 02:40:43,188 It was a mistake to have ever 4272 02:40:43,188 --> 02:40:43,488 allowed power to be privately 4273 02:40:43,488 --> 02:40:45,488 owned. 4274 02:40:46,558 --> 02:40:47,292 If the power had been publicly 4275 02:40:47,292 --> 02:40:49,692 owned, the electrical expertise 4276 02:40:51,196 --> 02:40:51,830 and the good union jobs would 4277 02:40:51,830 --> 02:40:52,430 have always been available 4278 02:40:52,430 --> 02:40:53,231 through a public entity. 4279 02:40:53,231 --> 02:40:56,101 It will never be a good time to 4280 02:40:56,101 --> 02:40:56,601 unwind this mistake but it 4281 02:40:56,601 --> 02:40:57,235 needs to be done. 4282 02:40:57,235 --> 02:41:00,235 We understand the fear of 4283 02:41:00,472 --> 02:41:01,239 uncertainty facing union 4284 02:41:01,239 --> 02:41:01,873 members but there is no better 4285 02:41:01,873 --> 02:41:02,240 union employer than public 4286 02:41:02,240 --> 02:41:04,240 agencies. 4287 02:41:05,910 --> 02:41:06,611 As you have pointed out, your 4288 02:41:06,611 --> 02:41:06,978 expertise and skill will still 4289 02:41:06,978 --> 02:41:07,579 be needed. 4290 02:41:07,579 --> 02:41:10,849 And yes, there will be a 4291 02:41:10,849 --> 02:41:11,550 reshuffling of jobs but 4292 02:41:11,550 --> 02:41:12,251 the jobs would not go away. 4293 02:41:12,251 --> 02:41:12,918 We hear the argument we don't 4294 02:41:12,918 --> 02:41:15,318 have enough information But 4295 02:41:15,687 --> 02:41:16,421 isn't this what the council is 4296 02:41:16,421 --> 02:41:18,821 considering a feasibility study 4297 02:41:20,325 --> 02:41:21,590 to gather more information. 4298 02:41:21,590 --> 02:41:21,727 We want the council to have all 4299 02:41:21,727 --> 02:41:24,127 the information possible to 4300 02:41:24,796 --> 02:41:25,664 make a decision on this issue. 4301 02:41:25,664 --> 02:41:26,310 >> We cannot be afraid of this 4302 02:41:26,310 --> 02:41:26,398 knowledge. 4303 02:41:26,398 --> 02:41:28,398 Thank you. 4304 02:41:29,935 --> 02:41:30,602 Thank you. 4305 02:41:30,602 --> 02:41:33,200 That does conclude public 4306 02:41:33,538 --> 02:41:34,390 comment on item 200. 4307 02:41:34,390 --> 02:41:34,406 >> Thank you. 4308 02:41:34,406 --> 02:41:35,700 All right. 4309 02:41:35,700 --> 02:41:37,407 Thank you, Deputy Clerk. 4310 02:41:38,243 --> 02:41:38,710 Let's take a moment and thank 4311 02:41:38,710 --> 02:41:39,411 Kevin. 4312 02:41:39,411 --> 02:41:40,780 This is his first big meeting 4313 02:41:40,780 --> 02:41:43,780 sitting there in the chair. 4314 02:41:43,682 --> 02:41:44,483 So well done, sir. 4315 02:41:44,483 --> 02:41:48,830 And to your entire team because 4316 02:41:48,620 --> 02:41:49,188 the way that you organized all 4317 02:41:49,188 --> 02:41:49,607 the flips truly, truly 4318 02:41:49,607 --> 02:41:50,222 impressive. 4319 02:41:50,222 --> 02:41:53,222 I'll just give a personal 4320 02:41:53,792 --> 02:41:54,526 thanks to everybody that showed 4321 02:41:54,526 --> 02:41:55,193 up and the special shout out to 4322 02:41:55,193 --> 02:41:57,930 those who showed up just to 4323 02:41:57,930 --> 02:41:58,230 give time to somebody else to 4324 02:41:58,230 --> 02:41:58,831 speak. 4325 02:41:58,831 --> 02:41:59,565 Greatly appreciate that. 4326 02:41:59,565 --> 02:42:02,200 So with that we will turn it 4327 02:42:02,200 --> 02:42:02,801 over to the council members for 4328 02:42:02,801 --> 02:42:03,502 questions and comments. 4329 02:42:03,502 --> 02:42:07,102 And we'll start with the chair 4330 02:42:07,106 --> 02:42:07,907 of the Environment Committee. 4331 02:42:07,907 --> 02:42:08,273 >> Council member Ella Rivera. 4332 02:42:08,273 --> 02:42:08,640 All right. 4333 02:42:08,640 --> 02:42:09,141 Thank you. 4334 02:42:09,141 --> 02:42:11,141 Council PRESIDENT. 4335 02:42:12,770 --> 02:42:12,811 Thanks for the report. 4336 02:42:12,811 --> 02:42:15,211 Obviously we had this 4337 02:42:16,648 --> 02:42:17,160 conversation at Environment 4338 02:42:17,160 --> 02:42:18,500 Committee. 4339 02:42:18,500 --> 02:42:21,650 This is a continuation of that 4340 02:42:23,822 --> 02:42:24,523 And I think the additional 4341 02:42:24,523 --> 02:42:26,923 public participation is useful 4342 02:42:28,193 --> 02:42:28,894 because it highlighted to me 4343 02:42:28,894 --> 02:42:29,628 what I think is probably 4344 02:42:29,628 --> 02:42:32,628 the most important component of 4345 02:42:33,732 --> 02:42:34,466 this And with very few 4346 02:42:34,466 --> 02:42:36,866 exceptions almost every comment 4347 02:42:38,504 --> 02:42:39,138 we heard today came from one of 4348 02:42:39,138 --> 02:42:39,805 two groups either the blue 4349 02:42:39,805 --> 02:42:42,805 collar workers who who keep 4350 02:42:43,275 --> 02:42:43,843 the grid running or residents 4351 02:42:43,843 --> 02:42:44,477 who are breaking under 4352 02:42:44,477 --> 02:42:47,477 the weight of their bills. 4353 02:42:48,414 --> 02:42:49,810 It's working People fighting to 4354 02:42:49,810 --> 02:42:52,810 make rent, fighting to keep 4355 02:42:52,117 --> 02:42:52,751 the lights on and fighting each 4356 02:42:52,751 --> 02:42:53,519 other over scraps because 4357 02:42:53,519 --> 02:42:56,519 that's exactly what a rigged 4358 02:42:57,189 --> 02:42:57,890 economy does. 4359 02:42:57,890 --> 02:42:58,190 It doesn't just take people's 4360 02:42:58,190 --> 02:42:58,924 money. 4361 02:42:58,924 --> 02:43:01,924 It turns neighbors against each 4362 02:43:02,528 --> 02:43:03,395 other, workers against 4363 02:43:03,395 --> 02:43:06,995 ratepayers in a fight over who 4364 02:43:07,466 --> 02:43:08,134 absorbs the pain while 4365 02:43:08,134 --> 02:43:11,134 the people who actually rig 4366 02:43:11,370 --> 02:43:12,710 the game keep their feet up and 4367 02:43:12,710 --> 02:43:12,571 enjoy the show from the other 4368 02:43:12,571 --> 02:43:13,105 side of the table. 4369 02:43:13,105 --> 02:43:15,505 So who's doing that? 4370 02:43:16,808 --> 02:43:17,543 As Jeanie in Sempra the set of 4371 02:43:17,543 --> 02:43:19,943 millionaire executives who will 4372 02:43:21,480 --> 02:43:22,810 go home tonight to a financial 4373 02:43:22,810 --> 02:43:25,810 reality that no one who 4374 02:43:25,384 --> 02:43:28,384 testified here today can even 4375 02:43:30,656 --> 02:43:31,524 imagine let alone enjoy. 4376 02:43:31,524 --> 02:43:32,124 So our San Diego boys are 4377 02:43:32,124 --> 02:43:32,458 fighting each other over 4378 02:43:32,458 --> 02:43:34,458 scraps. 4379 02:43:35,528 --> 02:43:36,195 Executives sit fat and happy 4380 02:43:36,195 --> 02:43:36,562 enjoying the fruits of their 4381 02:43:36,562 --> 02:43:37,263 victories. 4382 02:43:37,263 --> 02:43:39,298 We should put some numbers to 4383 02:43:39,298 --> 02:43:39,665 that because I think that's 4384 02:43:39,665 --> 02:43:40,333 important. 4385 02:43:40,333 --> 02:43:43,333 Sempra ceo Jeff Martin took 4386 02:43:44,236 --> 02:43:46,636 home a compensation package 4387 02:43:49,542 --> 02:43:50,276 worth $22.2 million in 2025 4388 02:43:50,276 --> 02:43:50,977 That made him the fourth 4389 02:43:50,977 --> 02:43:53,377 highest paid energy executive 4390 02:43:54,147 --> 02:43:54,881 in the country. 4391 02:43:54,881 --> 02:43:57,281 An average California worker 4392 02:43:58,117 --> 02:43:58,818 would have to work for 236 4393 02:43:58,818 --> 02:44:02,418 years to earn what Martin made 4394 02:44:02,855 --> 02:44:05,855 in a single year 236 years. 4395 02:44:07,827 --> 02:44:08,528 That's not poor people. 4396 02:44:08,528 --> 02:44:08,861 That's the average California 4397 02:44:08,861 --> 02:44:10,861 worker. 4398 02:44:12,565 --> 02:44:13,232 And that's the gap between 4399 02:44:13,232 --> 02:44:16,832 the people who keep the grid 4400 02:44:17,136 --> 02:44:17,803 running and the man at the top 4401 02:44:17,803 --> 02:44:21,403 of the company who owns it. 4402 02:44:21,941 --> 02:44:22,675 And I think there's something 4403 02:44:22,675 --> 02:44:25,675 really important about why it's 4404 02:44:27,213 --> 02:44:27,647 so important to continue this 4405 02:44:27,647 --> 02:44:28,348 conversation. 4406 02:44:28,348 --> 02:44:31,348 I understand the anxiety that 4407 02:44:32,850 --> 02:44:32,618 it creates for the workers who 4408 02:44:32,618 --> 02:44:33,119 who are impacted by 4409 02:44:33,119 --> 02:44:35,119 the conversation. 4410 02:44:36,956 --> 02:44:37,624 But I want to explain why it's 4411 02:44:37,624 --> 02:44:38,157 been important to keep this 4412 02:44:38,157 --> 02:44:38,691 conversation going. 4413 02:44:38,691 --> 02:44:40,691 Because despite this 4414 02:44:41,293 --> 02:44:41,961 conversation going despite a 4415 02:44:41,961 --> 02:44:44,361 visibility report that says 4416 02:44:46,320 --> 02:44:46,766 that this is feasible despite a 4417 02:44:46,766 --> 02:44:49,766 growing movement of San Diegans 4418 02:44:51,905 --> 02:44:52,572 who are organizing to fire 4419 02:44:52,572 --> 02:44:55,572 Jeanie as Jeanie still filed 4420 02:44:55,909 --> 02:44:58,309 for another rate increase 8.6% 4421 02:44:59,779 --> 02:45:00,647 on the average monthly bill 4422 02:45:00,647 --> 02:45:00,947 That's an extra 20 to 50 a 4423 02:45:00,947 --> 02:45:01,848 month. 4424 02:45:01,848 --> 02:45:05,510 While all of that scrutiny is 4425 02:45:05,510 --> 02:45:05,618 happening, not pausing to read 4426 02:45:05,618 --> 02:45:06,352 the room, they're not 4427 02:45:06,352 --> 02:45:09,352 questioning whether or not they 4428 02:45:09,656 --> 02:45:10,423 should slow down. 4429 02:45:10,423 --> 02:45:10,690 They're just they just keep at 4430 02:45:10,690 --> 02:45:12,690 it. 4431 02:45:14,260 --> 02:45:14,393 Increase after increase after 4432 02:45:14,393 --> 02:45:15,128 increase. 4433 02:45:15,128 --> 02:45:18,728 And the message that that sends 4434 02:45:19,650 --> 02:45:19,765 to us is that they don't think 4435 02:45:19,765 --> 02:45:20,400 we have the nerve to have an 4436 02:45:20,400 --> 02:45:20,833 honest conversation about 4437 02:45:20,833 --> 02:45:22,833 alternatives. 4438 02:45:24,700 --> 02:45:24,804 So I think we have a 4439 02:45:24,804 --> 02:45:25,372 responsibility to know what our 4440 02:45:25,372 --> 02:45:26,639 options are and ensure 4441 02:45:26,639 --> 02:45:30,239 the public knows the pros and 4442 02:45:31,811 --> 02:45:32,478 cons of those options. 4443 02:45:32,478 --> 02:45:33,790 According to the most recent 4444 02:45:33,790 --> 02:45:33,646 electric rates report by 4445 02:45:33,646 --> 02:45:35,646 the California Public 4446 02:45:37,830 --> 02:45:37,850 Advocate's Office over the past 4447 02:45:37,850 --> 02:45:40,850 ten years as residential rates 4448 02:45:45,392 --> 02:45:48,392 have risen 98% and every single 4449 02:45:48,895 --> 02:45:49,562 cent that ibew Local 465 4450 02:45:49,562 --> 02:45:50,196 members have earned in that 4451 02:45:50,196 --> 02:45:52,732 same period they've had to 4452 02:45:52,732 --> 02:45:53,366 fight for every contract 4453 02:45:53,366 --> 02:45:55,366 grievance after grievance. 4454 02:45:59,339 --> 02:46:00,140 Nothing handed to you earlier 4455 02:46:00,140 --> 02:46:02,609 this year or at the end of last 4456 02:46:02,609 --> 02:46:03,309 year as de went after a small 4457 02:46:03,309 --> 02:46:03,877 group of workers right to even 4458 02:46:03,877 --> 02:46:06,277 hold a union election. 4459 02:46:06,713 --> 02:46:09,713 Hiring the most notorious union 4460 02:46:11,518 --> 02:46:12,285 busting law firm in America and 4461 02:46:12,285 --> 02:46:15,885 tried to take advantage of a 4462 02:46:16,456 --> 02:46:17,223 paralyzed federal labor board 4463 02:46:17,223 --> 02:46:17,524 to run out the clock on that 4464 02:46:17,524 --> 02:46:18,325 vote. 4465 02:46:18,325 --> 02:46:20,894 And if it wasn't for the work 4466 02:46:20,894 --> 02:46:24,494 of the union they would have 4467 02:46:26,660 --> 02:46:26,933 been successful. 4468 02:46:26,933 --> 02:46:27,701 >> So when ratepayers see a 90% 4469 02:46:27,701 --> 02:46:30,637 or 98% rate increase and ask 4470 02:46:30,637 --> 02:46:34,808 for that money went I know it 4471 02:46:34,808 --> 02:46:35,676 didn't go to the workers. 4472 02:46:35,676 --> 02:46:36,443 It went to a company that will 4473 02:46:36,443 --> 02:46:39,443 spend resources fighting just a 4474 02:46:40,146 --> 02:46:40,814 handful of its own employees 4475 02:46:40,814 --> 02:46:43,814 rights to organize or asking 4476 02:46:47,788 --> 02:46:48,880 the rest of us for another 8.6% 4477 02:46:48,880 --> 02:46:48,889 . 4478 02:46:48,889 --> 02:46:49,590 So I want to make sure we're 4479 02:46:49,590 --> 02:46:50,190 really clear about what we're 4480 02:46:50,190 --> 02:46:52,993 up against and who we're 4481 02:46:52,993 --> 02:46:53,794 standing with. 4482 02:46:53,794 --> 02:46:54,160 MS. Mendoza I appreciated what 4483 02:46:54,160 --> 02:46:56,160 you said. 4484 02:46:57,364 --> 02:46:58,310 We can work together. 4485 02:46:58,310 --> 02:46:58,732 Nobody wants to fire 4486 02:46:58,732 --> 02:47:01,935 the workers who built the grid 4487 02:47:01,935 --> 02:47:02,636 and keep it running. 4488 02:47:02,636 --> 02:47:05,636 The conversation is about what 4489 02:47:06,874 --> 02:47:07,441 our options are instead of 4490 02:47:07,441 --> 02:47:08,142 the status quo Because 4491 02:47:08,142 --> 02:47:11,545 the status quo does not work. 4492 02:47:11,545 --> 02:47:12,345 The status quo allows a ceo to 4493 02:47:12,345 --> 02:47:15,345 earn 236 years worth an average 4494 02:47:16,116 --> 02:47:16,884 worker salary in a single year 4495 02:47:16,884 --> 02:47:18,152 ,fights its union over a 4496 02:47:18,152 --> 02:47:19,219 handful of jobs and squeezes 4497 02:47:19,219 --> 02:47:22,219 rate payers for a 98% rate 4498 02:47:23,457 --> 02:47:24,124 increase. 4499 02:47:24,124 --> 02:47:24,792 All while there's a 4500 02:47:24,792 --> 02:47:26,792 conversation happening about 4501 02:47:28,329 --> 02:47:30,729 what our options are. 4502 02:47:33,400 --> 02:47:33,767 So that context is incredibly 4503 02:47:33,767 --> 02:47:34,468 important. 4504 02:47:34,468 --> 02:47:36,868 I appreciate the conversation 4505 02:47:37,705 --> 02:47:38,405 here today and I again just 4506 02:47:38,405 --> 02:47:39,730 want to reiterate why I think 4507 02:47:39,730 --> 02:47:42,343 it's so important for us to 4508 02:47:42,343 --> 02:47:43,210 keep having it. 4509 02:47:43,210 --> 02:47:43,811 >> There were a lot of 4510 02:47:43,811 --> 02:47:46,211 important points made in 4511 02:47:47,314 --> 02:47:47,982 today's conversation about 4512 02:47:47,982 --> 02:47:50,982 the way that everyone feels 4513 02:47:51,952 --> 02:47:52,586 these impacts about the way 4514 02:47:52,586 --> 02:47:55,586 the city feels, the rising 4515 02:47:56,323 --> 02:47:57,124 costs, the way it has a a 4516 02:47:57,124 --> 02:48:00,427 domino effect in terms of cost 4517 02:48:00,427 --> 02:48:02,427 of living. 4518 02:48:05,432 --> 02:48:05,733 And we have this responsibility 4519 02:48:05,733 --> 02:48:07,733 . 4520 02:48:09,703 --> 02:48:10,470 I did have one one question 4521 02:48:10,470 --> 02:48:11,105 that I brought up last time and 4522 02:48:11,105 --> 02:48:11,438 I'm curious if there's any 4523 02:48:11,438 --> 02:48:13,438 updates. 4524 02:48:14,875 --> 02:48:15,543 Last time I asked about Long 4525 02:48:15,543 --> 02:48:18,543 Island and the hybrid model 4526 02:48:19,246 --> 02:48:19,947 that they pursued. 4527 02:48:19,947 --> 02:48:22,947 Have you done any additional 4528 02:48:24,151 --> 02:48:24,852 research on that? 4529 02:48:24,852 --> 02:48:26,852 Any additional analysis? 4530 02:48:29,560 --> 02:48:29,657 We did look into it generally. 4531 02:48:29,657 --> 02:48:30,391 Councilmember I think 4532 02:48:30,391 --> 02:48:33,391 the important thing to remember 4533 02:48:33,561 --> 02:48:34,194 about Long Island so you are 4534 02:48:34,194 --> 02:48:37,194 right that the Long Island 4535 02:48:38,566 --> 02:48:39,367 Power Authority lpa then has a 4536 02:48:39,367 --> 02:48:42,367 relationship with Shute I don't 4537 02:48:43,437 --> 02:48:43,804 remember actual utility 4538 02:48:43,804 --> 02:48:44,472 operator. 4539 02:48:44,472 --> 02:48:47,908 The issue is is that because 4540 02:48:47,908 --> 02:48:48,609 Long Island and New England and 4541 02:48:48,609 --> 02:48:49,143 most of the East Coast frankly 4542 02:48:49,143 --> 02:48:49,543 is in a deregulated 4543 02:48:49,543 --> 02:48:51,543 environment. 4544 02:48:53,447 --> 02:48:54,115 So it automatically splits kind 4545 02:48:54,115 --> 02:48:54,749 of commodity And then you've 4546 02:48:54,749 --> 02:48:57,749 got a lot of competing 4547 02:48:57,885 --> 02:48:58,653 distributors. 4548 02:48:58,653 --> 02:48:59,353 >> They are overseen still by 4549 02:48:59,353 --> 02:49:02,353 the state Department of Energy 4550 02:49:02,623 --> 02:49:03,591 and Electricity Resources. 4551 02:49:03,591 --> 02:49:07,562 And so you still have a state 4552 02:49:07,562 --> 02:49:08,296 level regulatory body that 4553 02:49:08,296 --> 02:49:10,696 oversees that specific contract 4554 02:49:12,400 --> 02:49:13,201 And there are conversations 4555 02:49:13,201 --> 02:49:13,901 going on on updates on that 4556 02:49:13,901 --> 02:49:14,501 contract that are coming up in 4557 02:49:14,501 --> 02:49:16,901 the next several years. 4558 02:49:17,472 --> 02:49:18,239 If there is continued interest 4559 02:49:18,239 --> 02:49:22,110 in deep diving in here we can 4560 02:49:22,110 --> 02:49:23,177 but there's no equivalent model 4561 02:49:23,177 --> 02:49:23,845 in a in what was a bundled or a 4562 02:49:23,845 --> 02:49:25,845 semi unregulated environment 4563 02:49:27,749 --> 02:49:28,383 like Calif in some of the other 4564 02:49:28,383 --> 02:49:31,383 larger states have got it. 4565 02:49:32,286 --> 02:49:33,254 >> Appreciate that. 4566 02:49:33,254 --> 02:49:35,654 General idea though is 4567 02:49:37,250 --> 02:49:37,692 the workers don't have to be 4568 02:49:37,692 --> 02:49:38,126 displaced from their current 4569 02:49:38,126 --> 02:49:38,793 place of work. 4570 02:49:38,793 --> 02:49:42,130 They continue to do the work 4571 02:49:42,130 --> 02:49:42,396 that they do for who they do 4572 02:49:42,396 --> 02:49:43,197 it. 4573 02:49:43,197 --> 02:49:46,797 What changes is that company is 4574 02:49:47,368 --> 02:49:48,169 now working for the city or 4575 02:49:48,169 --> 02:49:51,169 the municipality instead If I 4576 02:49:52,206 --> 02:49:52,473 understand the model correctly. 4577 02:49:52,473 --> 02:49:54,473 Yes. 4578 02:49:56,945 --> 02:49:57,612 Generally what I did not what 4579 02:49:57,612 --> 02:49:58,312 we did not necessarily have 4580 02:49:58,312 --> 02:49:59,140 time or resources to do was to 4581 02:49:59,140 --> 02:50:02,140 dig into the actual contracts 4582 02:50:02,150 --> 02:50:02,851 and compare what Long Island 4583 02:50:02,851 --> 02:50:05,251 Power Authority has negotiated 4584 02:50:07,522 --> 02:50:08,223 with the in this case. 4585 02:50:08,223 --> 02:50:08,890 And in that instance you're 4586 02:50:08,890 --> 02:50:11,290 talking about us contracting 4587 02:50:11,826 --> 02:50:12,694 out to sd Jenny so that that 4588 02:50:12,694 --> 02:50:16,294 and how different that is from 4589 02:50:16,297 --> 02:50:16,965 say either the workers contract 4590 02:50:16,965 --> 02:50:19,965 under that with that system 4591 02:50:20,835 --> 02:50:21,503 versus another and how 4592 02:50:21,503 --> 02:50:24,503 different say the revenue or 4593 02:50:25,974 --> 02:50:26,641 model is versus other areas 4594 02:50:26,641 --> 02:50:27,420 where that utility operates 4595 02:50:27,420 --> 02:50:29,420 separately? 4596 02:50:30,845 --> 02:50:31,780 Okay. 4597 02:50:31,780 --> 02:50:35,380 Again, just in terms of us 4598 02:50:36,117 --> 02:50:36,751 understanding options, the pros 4599 02:50:36,751 --> 02:50:37,385 and cons of those options 4600 02:50:37,385 --> 02:50:40,385 hearing what are the main 4601 02:50:41,389 --> 02:50:42,125 sources of anxiety that matter 4602 02:50:42,125 --> 02:50:42,824 to me here which is hardworking 4603 02:50:42,824 --> 02:50:44,292 people not being displaced in 4604 02:50:44,292 --> 02:50:47,292 their jobs, not having their 4605 02:50:49,197 --> 02:50:49,965 jobs place at risk And that's 4606 02:50:49,965 --> 02:50:50,765 seeming to be a thing that was 4607 02:50:50,765 --> 02:50:53,765 worked through in that model 4608 02:50:54,236 --> 02:50:54,869 While also significantly 4609 02:50:54,869 --> 02:50:56,869 reducing management costs. 4610 02:50:59,674 --> 02:51:00,375 It just seems like a thing that 4611 02:51:00,375 --> 02:51:03,745 we should know as a potential 4612 02:51:03,745 --> 02:51:04,512 tool in the tool belt. 4613 02:51:04,512 --> 02:51:04,879 I'll just end with this council 4614 02:51:04,879 --> 02:51:05,614 PRESIDENT. 4615 02:51:05,614 --> 02:51:08,550 I'm glad we're having this 4616 02:51:08,550 --> 02:51:09,584 conversation. 4617 02:51:09,584 --> 02:51:13,184 I think it's important and I 4618 02:51:13,488 --> 02:51:15,888 appreciate Nate your comments. 4619 02:51:18,460 --> 02:51:19,127 The reality is is that this is 4620 02:51:19,127 --> 02:51:19,895 I don't know that there's a 4621 02:51:19,895 --> 02:51:23,432 single issue where I heard have 4622 02:51:23,432 --> 02:51:24,132 heard more agreement amongst 4623 02:51:24,132 --> 02:51:24,733 folks from different sides of 4624 02:51:24,733 --> 02:51:25,333 the political spectrum. 4625 02:51:25,333 --> 02:51:28,236 We had some of the most 4626 02:51:28,236 --> 02:51:28,904 conservative folks who engage 4627 02:51:28,904 --> 02:51:29,571 with the council and some of 4628 02:51:29,571 --> 02:51:32,541 the furthest to the left who 4629 02:51:32,541 --> 02:51:33,241 are in complete agreement that 4630 02:51:33,241 --> 02:51:33,809 what is what we are currently 4631 02:51:33,809 --> 02:51:35,809 operating under is 4632 02:51:38,460 --> 02:51:38,747 unsustainable and unacceptable. 4633 02:51:38,747 --> 02:51:42,150 And if that doesn't show that 4634 02:51:42,150 --> 02:51:42,851 the dam is starting to break, 4635 02:51:42,851 --> 02:51:43,618 that San Diegans are sick and 4636 02:51:43,618 --> 02:51:46,855 tired of paying so much for 4637 02:51:46,855 --> 02:51:47,322 their utility bills I don't 4638 02:51:47,322 --> 02:51:47,923 know what will. 4639 02:51:47,923 --> 02:51:48,624 And it's that's why it's 4640 02:51:48,624 --> 02:51:51,624 incumbent upon us to continue 4641 02:51:51,927 --> 02:51:52,628 this conversation, continue to 4642 02:51:52,628 --> 02:51:53,362 work so that we know what 4643 02:51:53,362 --> 02:51:54,960 options we have to both protect 4644 02:51:54,960 --> 02:51:56,496 workers and protect ratepayers. 4645 02:51:57,666 --> 02:51:58,660 Thank you, Council PRESIDENT. 4646 02:51:58,660 --> 02:51:58,767 All right. 4647 02:51:58,767 --> 02:51:59,167 Well, thank you Council member 4648 02:51:59,167 --> 02:52:01,167 Eli Rivera. 4649 02:52:01,904 --> 02:52:02,604 And as a reminder this is an 4650 02:52:02,604 --> 02:52:05,604 information item and no motion 4651 02:52:06,475 --> 02:52:07,176 is required And I'm going to 4652 02:52:07,176 --> 02:52:08,900 jump in at this point. 4653 02:52:08,900 --> 02:52:08,610 So I want to start out by 4654 02:52:08,610 --> 02:52:10,610 thanking Heather General 4655 02:52:13,480 --> 02:52:13,615 Services Team Randy Wilde and 4656 02:52:13,615 --> 02:52:14,349 the mayor's office and 4657 02:52:14,349 --> 02:52:17,850 the teams that knew Jen and and 4658 02:52:17,850 --> 02:52:17,786 for this work And of course 4659 02:52:17,786 --> 02:52:18,387 thank you to every member of 4660 02:52:18,387 --> 02:52:21,387 the public who showed up 4661 02:52:21,390 --> 02:52:22,191 speaking on all sides of 4662 02:52:22,191 --> 02:52:25,594 the issue And those who called 4663 02:52:25,594 --> 02:52:26,295 in Phase two report was an 4664 02:52:26,295 --> 02:52:26,929 equally impressive undertaking 4665 02:52:26,929 --> 02:52:29,929 as phase one and provided 4666 02:52:30,832 --> 02:52:31,500 greater detail and clarity on a 4667 02:52:31,500 --> 02:52:32,101 proposal that is massive in 4668 02:52:32,101 --> 02:52:34,970 scale and as complex as 4669 02:52:34,970 --> 02:52:35,337 anything we would undertake at 4670 02:52:35,337 --> 02:52:36,380 the city. 4671 02:52:36,380 --> 02:52:36,405 That does not mean we should 4672 02:52:36,405 --> 02:52:38,405 shy away. 4673 02:52:40,209 --> 02:52:40,875 We can and will do big things 4674 02:52:40,875 --> 02:52:41,576 and win Financial impacts on 4675 02:52:41,576 --> 02:52:44,146 residents and businesses is on 4676 02:52:44,146 --> 02:52:44,713 the table. 4677 02:52:44,713 --> 02:52:45,481 We must be bold. 4678 02:52:45,481 --> 02:52:48,481 I will start by highlighting 4679 02:52:48,817 --> 02:52:49,485 the opening slide. 4680 02:52:49,485 --> 02:52:50,152 I mean it's simple Energy 4681 02:52:50,152 --> 02:52:50,753 utility is both economically 4682 02:52:50,753 --> 02:52:52,753 feasible and technically 4683 02:52:54,456 --> 02:52:55,224 feasible. 4684 02:52:55,224 --> 02:52:55,858 That is what the city set out 4685 02:52:55,858 --> 02:52:58,858 to determine and should we 4686 02:52:59,328 --> 02:52:59,762 decide to proceed there is a 4687 02:52:59,762 --> 02:53:00,495 path forward. 4688 02:53:00,495 --> 02:53:03,232 Of course that comes with risks 4689 02:53:03,232 --> 02:53:03,966 that must be weighed and 4690 02:53:03,966 --> 02:53:04,700 assumptions that must be tested 4691 02:53:04,700 --> 02:53:08,203 and we will have to find 4692 02:53:08,203 --> 02:53:09,400 the right balance. 4693 02:53:09,400 --> 02:53:09,672 And whether you feel the study 4694 02:53:09,672 --> 02:53:12,672 has been too conservative in 4695 02:53:13,175 --> 02:53:13,742 its projections or it MAY take 4696 02:53:13,742 --> 02:53:14,143 longer than initially 4697 02:53:14,143 --> 02:53:14,777 anticipated. 4698 02:53:14,777 --> 02:53:17,177 A municipal energy utility 4699 02:53:18,347 --> 02:53:19,480 remains feasible and since 4700 02:53:19,480 --> 02:53:22,480 the outset onset of exploring 4701 02:53:23,386 --> 02:53:24,530 public power and when I voted 4702 02:53:24,530 --> 02:53:26,453 against the current electric 4703 02:53:27,220 --> 02:53:27,722 and gas franchises in 2021 I 4704 02:53:27,722 --> 02:53:30,722 have talked about the limited 4705 02:53:30,926 --> 02:53:31,794 options we have as a city. 4706 02:53:31,794 --> 02:53:32,495 But just as we fought for in 4707 02:53:32,495 --> 02:53:36,650 the creation of the San Diego 4708 02:53:36,650 --> 02:53:36,866 community power in giving 4709 02:53:36,866 --> 02:53:39,866 customers options it would be 4710 02:53:40,736 --> 02:53:41,437 irresponsible of us not to 4711 02:53:41,437 --> 02:53:43,837 pursue pursue alternatives to 4712 02:53:45,207 --> 02:53:45,508 our energy distribution system 4713 02:53:45,508 --> 02:53:46,208 . 4714 02:53:46,208 --> 02:53:46,876 Today's presentation as we've 4715 02:53:46,876 --> 02:53:48,876 heard coincidentally perhaps 4716 02:53:50,379 --> 02:53:51,800 prophetically comes just days 4717 02:53:51,800 --> 02:53:54,800 after sd genius latest general 4718 02:53:55,685 --> 02:53:56,485 rate case submitted to the cpc. 4719 02:53:56,485 --> 02:53:59,789 And as we've heard from members 4720 02:53:59,789 --> 02:54:00,489 of the public sd Janey's own 4721 02:54:00,489 --> 02:54:01,190 projections are substantially 4722 02:54:01,190 --> 02:54:01,724 higher than the average annual 4723 02:54:01,724 --> 02:54:03,724 increase assumed by 4724 02:54:04,994 --> 02:54:05,928 the consultants in the study. 4725 02:54:05,928 --> 02:54:08,928 >> As an engineer I appreciate 4726 02:54:09,432 --> 02:54:10,660 that conservatism moving 4727 02:54:10,660 --> 02:54:10,766 forward with this process 4728 02:54:10,766 --> 02:54:13,166 demonstrates our commitment to 4729 02:54:14,437 --> 02:54:15,104 not sitting back not accepting 4730 02:54:15,104 --> 02:54:15,771 the status quo nor remaining 4731 02:54:15,771 --> 02:54:18,771 vulnerable to a monopoly but 4732 02:54:19,575 --> 02:54:20,276 rather exploring all options to 4733 02:54:20,276 --> 02:54:22,676 provide more affordable rates 4734 02:54:24,814 --> 02:54:25,381 keeping our options open and 4735 02:54:25,381 --> 02:54:27,781 continuing to pursue a 4736 02:54:29,552 --> 02:54:30,186 municipal energy utility is in 4737 02:54:30,186 --> 02:54:32,186 everyone's best interest. 4738 02:54:34,290 --> 02:54:34,957 So for those of you who opposed 4739 02:54:34,957 --> 02:54:37,357 this conversation, look into 4740 02:54:39,610 --> 02:54:39,761 the faces who can't afford but 4741 02:54:39,761 --> 02:54:42,761 don't qualify for subsidies on 4742 02:54:43,533 --> 02:54:44,300 their electric bill. 4743 02:54:44,300 --> 02:54:45,680 And for those of you who 4744 02:54:45,680 --> 02:54:48,668 support, look into the faces of 4745 02:54:48,771 --> 02:54:49,472 the workers who are wondering 4746 02:54:49,472 --> 02:54:53,720 whether they will still have a 4747 02:54:53,409 --> 02:54:53,910 long term career in their 4748 02:54:53,910 --> 02:54:55,910 chosen profession. 4749 02:54:58,881 --> 02:54:59,616 And a promise today is not 4750 02:54:59,616 --> 02:54:59,949 necessarily a promise that will 4751 02:54:59,949 --> 02:55:01,949 be kept. 4752 02:55:03,853 --> 02:55:04,554 The two sides of a conversation 4753 02:55:04,554 --> 02:55:07,554 And for those who oppose 4754 02:55:08,524 --> 02:55:09,459 municipal tell me the question 4755 02:55:09,459 --> 02:55:12,495 I ask you is what are you doing 4756 02:55:12,495 --> 02:55:13,196 to join the city in our efforts 4757 02:55:13,196 --> 02:55:16,196 to control rates, to control 4758 02:55:17,634 --> 02:55:18,401 the impact or reduce the impact 4759 02:55:18,401 --> 02:55:18,735 that is hitting so many San 4760 02:55:18,735 --> 02:55:20,735 Diegans? 4761 02:55:23,239 --> 02:55:26,839 And if those who spoke that 4762 02:55:27,410 --> 02:55:28,377 were prior here at City Hall 4763 02:55:28,377 --> 02:55:32,148 let me remind you you let a 50 4764 02:55:32,148 --> 02:55:32,849 year franchise expire with no 4765 02:55:32,849 --> 02:55:36,449 game plan to give our city 4766 02:55:36,820 --> 02:55:39,820 options or help control rates. 4767 02:55:40,590 --> 02:55:41,357 We missed a golden opportunity 4768 02:55:41,357 --> 02:55:44,357 and 2021 became a very awkward 4769 02:55:45,895 --> 02:55:46,763 year to realize we had no place 4770 02:55:46,763 --> 02:55:50,834 to go and a franchise had to be 4771 02:55:50,834 --> 02:55:51,368 signed to keep the wheels 4772 02:55:51,368 --> 02:55:52,168 turning so to speak. 4773 02:55:52,168 --> 02:55:55,168 So this is a difficult 4774 02:55:55,872 --> 02:55:56,606 conversation. 4775 02:55:56,606 --> 02:55:56,940 I agree with Councilmember Eloy 4776 02:55:56,940 --> 02:55:57,574 Rivera. 4777 02:55:57,574 --> 02:55:57,874 We should keep our options 4778 02:55:57,874 --> 02:55:59,874 open. 4779 02:56:00,944 --> 02:56:01,544 We should continue to pursue a 4780 02:56:01,544 --> 02:56:03,544 municipal energy utility 4781 02:56:05,415 --> 02:56:05,782 because it's in everyone's best 4782 02:56:05,782 --> 02:56:06,483 interest. 4783 02:56:06,483 --> 02:56:10,830 And until we have sd Jeannie 4784 02:56:10,186 --> 02:56:10,954 come to the table, pull that 4785 02:56:10,954 --> 02:56:13,823 general rate increase and have 4786 02:56:13,823 --> 02:56:14,524 the conversation as one member 4787 02:56:14,524 --> 02:56:14,824 of the public I'm not going to 4788 02:56:14,824 --> 02:56:15,459 name. 4789 02:56:15,459 --> 02:56:18,295 He knows who he is and he 4790 02:56:18,295 --> 02:56:19,620 pleasantly surprised me today 4791 02:56:19,620 --> 02:56:22,620 and have a real conversation 4792 02:56:23,165 --> 02:56:23,934 about how we relook at rates 4793 02:56:23,934 --> 02:56:24,734 knowing as some of you have 4794 02:56:24,734 --> 02:56:28,238 said that the cpp is not going 4795 02:56:28,238 --> 02:56:29,172 to save us. 4796 02:56:29,172 --> 02:56:32,772 And as a reminder cpc doesn't 4797 02:56:32,876 --> 02:56:33,743 guarantee profits. 4798 02:56:33,743 --> 02:56:34,110 They set a profit rate to set 4799 02:56:34,110 --> 02:56:36,110 the rates. 4800 02:56:38,248 --> 02:56:38,915 And when I won and the investor 4801 02:56:38,915 --> 02:56:41,315 owned utility exceeds those 4802 02:56:42,180 --> 02:56:42,418 profit rates year after year 4803 02:56:42,418 --> 02:56:43,190 after year. 4804 02:56:43,190 --> 02:56:45,419 Something has to change. 4805 02:56:46,857 --> 02:56:47,491 We have to protect our most 4806 02:56:47,491 --> 02:56:49,491 vulnerable individuals who 4807 02:56:51,595 --> 02:56:52,362 can't afford what should be a 4808 02:56:52,362 --> 02:56:52,796 right of affordable electricity 4809 02:56:52,796 --> 02:56:54,796 going forward. 4810 02:56:57,340 --> 02:56:57,334 >> So that's where we stand 4811 02:56:57,334 --> 02:56:58,101 today. 4812 02:56:58,101 --> 02:57:01,238 I agree that we have to keep 4813 02:57:01,238 --> 02:57:01,538 this on the table going forward 4814 02:57:01,538 --> 02:57:02,205 . 4815 02:57:02,205 --> 02:57:02,939 And again, thank you for 4816 02:57:02,939 --> 02:57:03,240 the good work in this phase two 4817 02:57:03,240 --> 02:57:05,240 study. 4818 02:57:07,244 --> 02:57:07,911 With that again this is an 4819 02:57:07,911 --> 02:57:08,278 information item no motions 4820 02:57:08,278 --> 02:57:08,946 required. 4821 02:57:08,946 --> 02:57:11,946 We'll turn to council member 4822 02:57:12,215 --> 02:57:12,849 Campbell, the third member of 4823 02:57:12,849 --> 02:57:14,849 the Environment Committee. 4824 02:57:16,219 --> 02:57:16,987 >> Thank you so much. 4825 02:57:16,987 --> 02:57:19,387 Council PRESIDENT When first 4826 02:57:21,525 --> 02:57:22,225 elected and thank you for 4827 02:57:22,225 --> 02:57:22,926 the presentation and thanks to 4828 02:57:22,926 --> 02:57:25,495 the public for all of your 4829 02:57:25,495 --> 02:57:25,862 input. 4830 02:57:25,862 --> 02:57:26,630 It's a. 4831 02:57:26,630 --> 02:57:29,630 Agreed with and appreciated on 4832 02:57:30,501 --> 02:57:31,301 all sides. 4833 02:57:31,301 --> 02:57:34,301 This is a really complicated 4834 02:57:35,138 --> 02:57:35,939 issue and I want to say that 4835 02:57:35,939 --> 02:57:36,640 when I was first elected to 4836 02:57:36,640 --> 02:57:37,307 council I was appointed chair 4837 02:57:37,307 --> 02:57:39,707 of the Environment Committee 4838 02:57:40,177 --> 02:57:40,944 That was JANUARY 2019. 4839 02:57:40,944 --> 02:57:44,544 First thing I did was lead 4840 02:57:44,982 --> 02:57:45,516 the effort to create community 4841 02:57:45,516 --> 02:57:47,516 choice aggregation. 4842 02:57:49,920 --> 02:57:50,721 In other words, what became San 4843 02:57:50,721 --> 02:57:53,557 Diego community power does now 4844 02:57:53,557 --> 02:57:54,258 include six cities and our 4845 02:57:54,258 --> 02:57:56,658 county government which means 4846 02:57:58,395 --> 02:57:59,163 our unincorporated areas. 4847 02:57:59,163 --> 02:57:59,797 One of the goals was to provide 4848 02:57:59,797 --> 02:58:02,197 cleaner energy options to 4849 02:58:03,167 --> 02:58:03,500 reduce the effects of climate 4850 02:58:03,500 --> 02:58:04,167 change. 4851 02:58:04,167 --> 02:58:07,167 It also gave our communities 4852 02:58:07,437 --> 02:58:08,238 more local control over how we 4853 02:58:08,238 --> 02:58:11,238 purchase energy And at that 4854 02:58:11,342 --> 02:58:12,420 time the city commissioned 4855 02:58:12,420 --> 02:58:15,420 the first feasibility study on 4856 02:58:15,913 --> 02:58:16,580 municipal izing our energy 4857 02:58:16,580 --> 02:58:18,980 utilities, gas and electric. 4858 02:58:20,918 --> 02:58:21,619 And since then we have 4859 02:58:21,619 --> 02:58:24,619 completed two more studies and 4860 02:58:26,560 --> 02:58:26,923 spent millions of dollars on 4861 02:58:26,923 --> 02:58:29,923 consultants to tell us about 4862 02:58:31,950 --> 02:58:31,795 municipal ization millions of 4863 02:58:31,795 --> 02:58:35,990 dollars we could use this year 4864 02:58:35,990 --> 02:58:35,499 in our budget or in a year in 4865 02:58:35,499 --> 02:58:37,499 our budget. 4866 02:58:40,371 --> 02:58:41,710 The findings have always been 4867 02:58:41,710 --> 02:58:41,538 clear The estimated cost is at 4868 02:58:41,538 --> 02:58:43,538 least 8 billion. 4869 02:58:45,810 --> 02:58:48,746 That was the first study that 4870 02:58:48,746 --> 02:58:49,513 was seven years ago is probably 4871 02:58:49,513 --> 02:58:50,214 16 billion now and that was 4872 02:58:50,214 --> 02:58:52,614 just for the infrastructure 4873 02:58:54,118 --> 02:58:54,785 needed. 4874 02:58:54,785 --> 02:58:57,785 The city cannot afford this. 4875 02:58:59,490 --> 02:59:02,490 That estimate does not include 4876 02:59:03,461 --> 02:59:04,950 additional cafs costs staffing 4877 02:59:04,950 --> 02:59:04,795 operations and onboarding. 4878 02:59:04,795 --> 02:59:08,395 The impact of exit fees on 4879 02:59:08,599 --> 02:59:11,599 the other 17 cities that rely 4880 02:59:13,504 --> 02:59:14,272 on sd Jeannie system and would 4881 02:59:14,272 --> 02:59:17,272 expect us to pay them 4882 02:59:18,442 --> 02:59:19,477 the difference or the fact that 4883 02:59:19,477 --> 02:59:23,281 we still would need to use sd g 4884 02:59:23,281 --> 02:59:26,881 and e for the gas component. 4885 02:59:28,850 --> 02:59:28,653 So this study was only about 4886 02:59:28,653 --> 02:59:31,530 electricity not the g. 4887 02:59:32,523 --> 02:59:36,123 Part of sd g After three 4888 02:59:37,610 --> 02:59:37,462 studies we do not need more 4889 02:59:37,462 --> 02:59:38,196 analysis. 4890 02:59:38,196 --> 02:59:41,196 We already have the information 4891 02:59:41,732 --> 02:59:42,600 we need to decide at this point 4892 02:59:42,600 --> 02:59:46,200 it is too expensive to continue 4893 02:59:46,403 --> 02:59:46,804 to spend billions of dollars on 4894 02:59:46,804 --> 02:59:48,804 consultants. 4895 02:59:51,142 --> 02:59:51,776 It is way too expensive for 4896 02:59:51,776 --> 02:59:54,776 the billions that the city 4897 02:59:55,880 --> 02:59:56,547 would have to spend to try to. 4898 02:59:56,547 --> 02:59:58,947 To provide this utility. 4899 03:00:00,884 --> 03:00:01,586 It is important to know that 4900 03:00:01,586 --> 03:00:04,586 the state of California public 4901 03:00:05,890 --> 03:00:08,290 utilities Commission, the puc 4902 03:00:10,228 --> 03:00:11,129 it says right there in the law 4903 03:00:11,129 --> 03:00:14,129 is main responsibility is to 4904 03:00:15,566 --> 03:00:16,367 protect ratepayers and also 4905 03:00:16,367 --> 03:00:19,367 decide utility rates In so 4906 03:00:20,505 --> 03:00:22,905 doing to protect ratepayers. 4907 03:00:24,776 --> 03:00:25,760 They're supposed to protect us 4908 03:00:25,760 --> 03:00:25,476 . 4909 03:00:25,476 --> 03:00:27,476 They don't. 4910 03:00:29,414 --> 03:00:32,414 It's supposed to decide utility 4911 03:00:34,520 --> 03:00:34,752 rates within mind us consumers 4912 03:00:34,752 --> 03:00:38,352 The puc needs to be reformed. 4913 03:00:39,257 --> 03:00:39,924 It needs to be held accountable 4914 03:00:39,924 --> 03:00:43,524 and I ask you to please 4915 03:00:44,462 --> 03:00:45,129 inundate them with emails and 4916 03:00:45,129 --> 03:00:48,129 phone calls and letters that 4917 03:00:48,767 --> 03:00:52,967 they need to lower sd any rates 4918 03:00:53,371 --> 03:00:54,380 not raise them. 4919 03:00:54,380 --> 03:00:56,438 Forming San Diego community 4920 03:00:58,376 --> 03:00:59,770 power was a good idea and sd 4921 03:00:59,770 --> 03:01:02,677 Jeannie was in favor and you 4922 03:01:02,947 --> 03:01:03,548 MAY be wondering why Why would 4923 03:01:03,548 --> 03:01:04,215 they have been in favor? 4924 03:01:04,215 --> 03:01:06,215 Because commercial utilities 4925 03:01:08,253 --> 03:01:09,120 are not allowed to make a 4926 03:01:09,120 --> 03:01:13,910 profit on what it costs them to 4927 03:01:13,910 --> 03:01:13,792 buy the power to make 4928 03:01:13,792 --> 03:01:16,792 electricity And so they handed 4929 03:01:17,729 --> 03:01:18,296 this off gladly to the San 4930 03:01:18,296 --> 03:01:20,296 Diego community power. 4931 03:01:22,330 --> 03:01:22,734 Do you know that 95% of 4932 03:01:22,734 --> 03:01:25,134 electric customers have signed 4933 03:01:26,371 --> 03:01:26,704 up for San Diego community 4934 03:01:26,704 --> 03:01:27,572 power? 4935 03:01:27,572 --> 03:01:31,172 It's a good thing It's been 4936 03:01:31,443 --> 03:01:32,277 very successful. 4937 03:01:32,277 --> 03:01:35,877 It has millions of dollars in 4938 03:01:36,147 --> 03:01:36,848 its reserve. 4939 03:01:36,848 --> 03:01:40,448 The question is why have they 4940 03:01:41,186 --> 03:01:42,200 not lowered their rates? 4941 03:01:42,200 --> 03:01:45,523 We need to have them come in 4942 03:01:45,523 --> 03:01:46,291 and answer that for us. 4943 03:01:46,291 --> 03:01:49,291 Meantime, we need to stop 4944 03:01:50,629 --> 03:01:50,962 spending on consultant reports 4945 03:01:50,962 --> 03:01:51,730 . 4946 03:01:51,730 --> 03:01:52,630 I think this last one was $3 4947 03:01:52,630 --> 03:01:52,531 million. 4948 03:01:52,531 --> 03:01:54,531 It's ridiculous. 4949 03:01:55,400 --> 03:01:55,801 Is going to come out the same 4950 03:01:55,801 --> 03:01:57,801 every time. 4951 03:01:59,671 --> 03:02:00,372 It's very, very expensive And 4952 03:02:00,372 --> 03:02:01,139 the city has 100 and $100 4953 03:02:01,139 --> 03:02:04,139 million deficit It can't even 4954 03:02:05,210 --> 03:02:08,210 meet And we're supposed to 4955 03:02:08,980 --> 03:02:09,681 spend 8,000,000,008 billion 60 4956 03:02:09,681 --> 03:02:10,150 billion to become an electric 4957 03:02:10,150 --> 03:02:10,415 company? 4958 03:02:10,415 --> 03:02:12,415 No, no, no. 4959 03:02:13,785 --> 03:02:14,520 That doesn't make any sense at 4960 03:02:14,520 --> 03:02:15,200 all. 4961 03:02:15,200 --> 03:02:18,357 We cannot afford to be a power 4962 03:02:18,357 --> 03:02:21,957 company In the meantime, as dg 4963 03:02:22,594 --> 03:02:23,194 and his top executives and 4964 03:02:23,194 --> 03:02:23,862 those of many other 4965 03:02:23,862 --> 03:02:26,262 corporations in this nation 4966 03:02:27,666 --> 03:02:28,366 need to decide how many 4967 03:02:28,366 --> 03:02:31,966 millions of dollars a year do 4968 03:02:32,404 --> 03:02:32,938 they need to live on? 4969 03:02:32,938 --> 03:02:33,672 This is ridiculous. 4970 03:02:33,672 --> 03:02:36,672 Just as my my colleague 4971 03:02:37,176 --> 03:02:39,576 Councilmember Ella Rivera said, 4972 03:02:41,713 --> 03:02:42,181 the guy in 2025 made $25 4973 03:02:42,181 --> 03:02:42,648 million a year. 4974 03:02:42,648 --> 03:02:44,648 It's ridiculous. 4975 03:02:47,850 --> 03:02:47,786 Think if you only made a couple 4976 03:02:47,786 --> 03:02:51,386 of million dollars a year how 4977 03:02:51,657 --> 03:02:52,124 many rates could be lowered? 4978 03:02:52,124 --> 03:02:52,591 Quite a few. 4979 03:02:52,591 --> 03:02:53,659 Quite a few. 4980 03:02:53,659 --> 03:02:56,895 And so I say to all the top 4981 03:02:56,895 --> 03:02:57,596 executives of the corporations 4982 03:02:57,596 --> 03:03:01,196 in this nation how much money 4983 03:03:04,269 --> 03:03:08,469 do you really need at the cost 4984 03:03:08,707 --> 03:03:09,174 of making your consumers poor? 4985 03:03:09,174 --> 03:03:11,174 Greed is evil. 4986 03:03:14,790 --> 03:03:14,647 Stop practicing it. 4987 03:03:14,647 --> 03:03:15,314 >> Thank you. 4988 03:03:15,314 --> 03:03:15,948 Council PRESIDENT All right. 4989 03:03:15,948 --> 03:03:16,315 Thank you, Council member 4990 03:03:16,315 --> 03:03:18,315 Campbell. 4991 03:03:19,318 --> 03:03:19,718 We'll go next to council member 4992 03:03:19,718 --> 03:03:21,718 Von Walbert. 4993 03:03:22,888 --> 03:03:23,489 Thank you very much for your 4994 03:03:23,489 --> 03:03:23,989 work today and for 4995 03:03:23,989 --> 03:03:24,657 the presentation. 4996 03:03:24,657 --> 03:03:27,657 Thank you for everyone who's 4997 03:03:28,930 --> 03:03:28,727 come in today to express a very 4998 03:03:28,727 --> 03:03:29,395 justified frustration over 4999 03:03:29,395 --> 03:03:32,395 the fact that effigy enables 5000 03:03:32,698 --> 03:03:33,432 continue to go up including our 5001 03:03:33,432 --> 03:03:33,866 own workers who also don't want 5002 03:03:33,866 --> 03:03:35,866 to pay that. 5003 03:03:37,703 --> 03:03:38,370 And I want to thank the workers 5004 03:03:38,370 --> 03:03:39,104 who came in, especially our 5005 03:03:39,104 --> 03:03:42,700 veterans who served in Iraq and 5006 03:03:42,700 --> 03:03:42,774 Afghanistan. 5007 03:03:42,774 --> 03:03:43,750 I can't imagine what you've 5008 03:03:43,750 --> 03:03:43,742 seen. 5009 03:03:43,742 --> 03:03:46,742 You know, this past Memorial 5010 03:03:47,279 --> 03:03:47,980 Day we just did a memorial 5011 03:03:47,980 --> 03:03:50,380 commemorations only for folks 5012 03:03:51,584 --> 03:03:52,284 who died in the Afghanistan and 5013 03:03:52,284 --> 03:03:55,284 Iraqi wars because they were 5014 03:03:56,522 --> 03:03:57,456 our generation. 5015 03:03:57,456 --> 03:03:58,157 And so just know that you have 5016 03:03:58,157 --> 03:03:58,858 sacrificed a lot in coming in 5017 03:03:58,858 --> 03:04:01,794 and getting training from ibew 5018 03:04:01,794 --> 03:04:02,495 which is one of the most 5019 03:04:02,495 --> 03:04:03,162 incredible veterans transition 5020 03:04:03,162 --> 03:04:06,162 employers in this country is 5021 03:04:07,433 --> 03:04:08,134 fantastic And I want to thank 5022 03:04:08,134 --> 03:04:08,434 you for continuing to do that 5023 03:04:08,434 --> 03:04:09,135 work. 5024 03:04:09,135 --> 03:04:09,502 So I know that we up here care 5025 03:04:09,502 --> 03:04:11,700 about you. 5026 03:04:11,700 --> 03:04:11,837 We care about union workers And 5027 03:04:11,837 --> 03:04:12,338 I'm going to show you why what 5028 03:04:12,338 --> 03:04:14,738 we're going to do. 5029 03:04:15,741 --> 03:04:16,442 I also want to thank 5030 03:04:16,442 --> 03:04:17,143 the environmentalist who came 5031 03:04:17,143 --> 03:04:19,211 in San Diego 350 and everyone 5032 03:04:19,211 --> 03:04:19,845 who's been trying to take away 5033 03:04:19,845 --> 03:04:22,845 the monopoly power of this 5034 03:04:24,450 --> 03:04:25,117 company as we should our our 5035 03:04:25,117 --> 03:04:25,484 public power should not be a 5036 03:04:25,484 --> 03:04:27,484 monopoly. 5037 03:04:28,354 --> 03:04:28,955 We should not be paying $22 5038 03:04:28,955 --> 03:04:31,955 million alone To the ceo 5039 03:04:33,393 --> 03:04:33,693 Jeffrey Martin of Sempra last 5040 03:04:33,693 --> 03:04:34,460 year. 5041 03:04:34,460 --> 03:04:37,863 We just should none of us have 5042 03:04:37,863 --> 03:04:38,464 a choice about whether or not 5043 03:04:38,464 --> 03:04:39,332 we pay a fee. 5044 03:04:39,332 --> 03:04:42,168 You need to keep our power on 5045 03:04:42,168 --> 03:04:42,868 but I want everyone who's in 5046 03:04:42,868 --> 03:04:43,569 the room all the union workers 5047 03:04:43,569 --> 03:04:44,237 especially or anyone who works 5048 03:04:44,237 --> 03:04:44,537 at a job to pay attention to 5049 03:04:44,537 --> 03:04:46,537 this. 5050 03:04:47,540 --> 03:04:48,241 This is a public website from 5051 03:04:48,241 --> 03:04:48,608 the Office of Labor Management 5052 03:04:48,608 --> 03:04:49,275 Standards. 5053 03:04:49,275 --> 03:04:51,877 It's under the Department of 5054 03:04:51,877 --> 03:04:52,745 Labor. 5055 03:04:52,745 --> 03:04:53,546 You can check this website to 5056 03:04:53,546 --> 03:04:56,949 see if your employer is paying 5057 03:04:56,949 --> 03:04:57,250 union busters for the most 5058 03:04:57,250 --> 03:04:57,950 part. 5059 03:04:57,950 --> 03:04:58,584 We'll get to Jackson Lewis go 5060 03:04:58,584 --> 03:05:01,584 to the next slide please. 5061 03:05:01,888 --> 03:05:02,588 We did check this website when 5062 03:05:02,588 --> 03:05:05,892 we had to renew the franchise 5063 03:05:05,892 --> 03:05:06,692 agreement as council PRESIDENT 5064 03:05:06,692 --> 03:05:07,160 LaCava said and we all got 5065 03:05:07,160 --> 03:05:07,960 elected up here. 5066 03:05:07,960 --> 03:05:10,960 We were forced with this 5067 03:05:11,631 --> 03:05:12,365 renewal for stg and our 5068 03:05:12,365 --> 03:05:13,320 predecessors didn't do anything 5069 03:05:13,320 --> 03:05:17,232 about it and left it in our 5070 03:05:17,236 --> 03:05:17,570 laps This is a formal Clinton 5071 03:05:17,570 --> 03:05:18,237 report. 5072 03:05:18,237 --> 03:05:19,105 You can see it highlighted. 5073 03:05:19,105 --> 03:05:20,840 It's from c, g and e Studio gas 5074 03:05:20,840 --> 03:05:21,507 and electric from 2019. 5075 03:05:21,507 --> 03:05:22,275 Please go to the next slide. 5076 03:05:22,275 --> 03:05:25,275 This is a public report. 5077 03:05:25,478 --> 03:05:26,145 They have two to show if 5078 03:05:26,145 --> 03:05:29,145 they're going to hire union 5079 03:05:29,382 --> 03:05:30,249 busters they are public facing 5080 03:05:30,249 --> 03:05:30,917 in 2019 as you paid tens of 5081 03:05:30,917 --> 03:05:33,917 thousands of dollars of our 5082 03:05:33,987 --> 03:05:34,621 rate payer money to hire crews 5083 03:05:34,621 --> 03:05:35,288 and associates to be their 5084 03:05:35,288 --> 03:05:37,288 independent labor consultant 5085 03:05:39,325 --> 03:05:39,925 who is known nationwide to be 5086 03:05:39,925 --> 03:05:40,493 one of the biggest union 5087 03:05:40,493 --> 03:05:42,893 busters in the nation. 5088 03:05:43,529 --> 03:05:44,230 They were trying to rent steel 5089 03:05:44,230 --> 03:05:44,864 you need from hiring from 5090 03:05:44,864 --> 03:05:45,598 unionizing the coal center 5091 03:05:45,598 --> 03:05:49,168 workers And I know ibew came to 5092 03:05:49,168 --> 03:05:49,836 the call center Workers Aid and 5093 03:05:49,836 --> 03:05:50,536 made sure this didn't happen 5094 03:05:50,536 --> 03:05:53,536 before the next slide please. 5095 03:05:53,873 --> 03:05:54,641 This is the one from 2018 which 5096 03:05:54,641 --> 03:05:56,810 you can see Crews Associates 5097 03:05:56,810 --> 03:05:57,510 was paid This one I think was 5098 03:05:57,510 --> 03:06:01,130 signed by Scott Crider who is 5099 03:06:01,130 --> 03:06:01,781 now I believe the ceo of cgt. 5100 03:06:01,781 --> 03:06:04,781 They paid them $33,000 to hire 5101 03:06:06,219 --> 03:06:06,919 union busters to fight 5102 03:06:06,919 --> 03:06:07,620 The unionized work to cgt had 5103 03:06:07,620 --> 03:06:10,523 been hiring union busters And 5104 03:06:10,523 --> 03:06:11,224 when they came to this Dyess to 5105 03:06:11,224 --> 03:06:12,192 get a renewal I required cgt 5106 03:06:12,192 --> 03:06:14,940 their ceo to say they would not 5107 03:06:14,940 --> 03:06:17,940 hire union busters again with 5108 03:06:19,666 --> 03:06:20,333 our money And you agreed? 5109 03:06:20,333 --> 03:06:23,370 I think at the end of 5110 03:06:23,370 --> 03:06:24,137 the slides you do down And so 5111 03:06:24,137 --> 03:06:25,400 I'm really upset to see that 5112 03:06:25,400 --> 03:06:29,204 when ibew tried to get some of 5113 03:06:29,275 --> 03:06:30,100 their supervisor employees who 5114 03:06:30,100 --> 03:06:30,643 don't actually supervise anyone 5115 03:06:30,643 --> 03:06:31,378 into the union which is a 5116 03:06:31,378 --> 03:06:34,378 common union busting tactic for 5117 03:06:34,647 --> 03:06:35,314 an employer to say they have 5118 03:06:35,314 --> 03:06:37,314 supervisory responsibilities 5119 03:06:39,586 --> 03:06:40,286 which they don't You hired 5120 03:06:40,286 --> 03:06:40,987 Jackson Lewis but guess what? 5121 03:06:40,987 --> 03:06:41,688 You don't have to report that 5122 03:06:41,688 --> 03:06:44,357 because there's a loophole in 5123 03:06:44,357 --> 03:06:45,158 federal law that says if you 5124 03:06:45,158 --> 03:06:46,260 hire a lawyer to you your union 5125 03:06:46,260 --> 03:06:49,496 busting you can call it legal 5126 03:06:49,496 --> 03:06:50,163 services. 5127 03:06:50,163 --> 03:06:50,764 Congress can change this law 5128 03:06:50,764 --> 03:06:53,764 and I hope they do. 5129 03:06:54,534 --> 03:06:55,235 They haven't anyway, I am sick 5130 03:06:55,235 --> 03:06:55,936 and tired of seeing cgt crush 5131 03:06:55,936 --> 03:06:58,805 its workers at our expense and 5132 03:06:58,805 --> 03:06:59,606 I want you to know that 5133 03:06:59,606 --> 03:07:00,273 everyone on this diet is going 5134 03:07:00,273 --> 03:07:00,941 to work hard to make sure 5135 03:07:00,941 --> 03:07:02,941 whatever transition happens 5136 03:07:03,910 --> 03:07:04,678 union jobs are protected. 5137 03:07:04,678 --> 03:07:05,412 You do incredibly hard work at 5138 03:07:05,412 --> 03:07:09,549 a high voltage and none of us 5139 03:07:09,549 --> 03:07:10,183 are trying to do and we 5140 03:07:10,183 --> 03:07:11,840 respected value for that. 5141 03:07:11,840 --> 03:07:11,418 If you need me on a strike line 5142 03:07:11,418 --> 03:07:12,919 call me. 5143 03:07:12,919 --> 03:07:14,919 I'll be there. 5144 03:07:18,458 --> 03:07:21,458 That said, I'm questions First 5145 03:07:24,398 --> 03:07:24,998 of all what would taking over 5146 03:07:24,998 --> 03:07:25,699 the power structure look 5147 03:07:25,699 --> 03:07:28,990 the power infrastructure look 5148 03:07:28,735 --> 03:07:29,436 like Obviously you need is not 5149 03:07:29,436 --> 03:07:30,137 willing to sell their assets. 5150 03:07:30,137 --> 03:07:33,673 So legally what would the city 5151 03:07:33,673 --> 03:07:34,441 do if we were to do that? 5152 03:07:34,441 --> 03:07:35,142 >> So if we use the San 5153 03:07:35,142 --> 03:07:38,142 Francisco model as the current 5154 03:07:39,780 --> 03:07:42,180 Calif fornia template San 5155 03:07:42,883 --> 03:07:43,683 Francisco City County they're 5156 03:07:43,683 --> 03:07:47,883 all one thing did make an offer 5157 03:07:48,755 --> 03:07:49,456 to pge to purchase the wires in 5158 03:07:49,456 --> 03:07:50,224 their system and you kind of 5159 03:07:50,224 --> 03:07:54,424 didn't pick up the phone So San 5160 03:07:54,495 --> 03:07:55,228 Francisco petitioned to 5161 03:07:55,228 --> 03:07:58,828 the cpsc which regulates pge to 5162 03:07:59,599 --> 03:08:00,660 require pge to to establish a 5163 03:08:00,660 --> 03:08:00,667 purchase price. 5164 03:08:00,667 --> 03:08:03,667 >> So that is as Scott 5165 03:08:05,305 --> 03:08:06,600 mentioned, the biggest variable 5166 03:08:06,600 --> 03:08:06,640 about how all of this modeling 5167 03:08:06,640 --> 03:08:07,374 and economics really works 5168 03:08:07,374 --> 03:08:10,374 where feasible, where your cash 5169 03:08:11,145 --> 03:08:11,745 flow is, etc. That is now a 5170 03:08:11,745 --> 03:08:12,513 process that is ongoing. 5171 03:08:12,513 --> 03:08:16,113 The first decision came out in 5172 03:08:16,550 --> 03:08:17,217 the fall and that set 5173 03:08:17,217 --> 03:08:17,818 the framework of what has to 5174 03:08:17,818 --> 03:08:19,818 happen afterwards which 5175 03:08:22,856 --> 03:08:23,524 includes prey's appraisals of 5176 03:08:23,524 --> 03:08:24,224 the system by both parties, 5177 03:08:24,224 --> 03:08:26,224 multiple different valuations 5178 03:08:27,194 --> 03:08:27,828 and a basic set of principles 5179 03:08:27,828 --> 03:08:30,228 regarding things like just 5180 03:08:32,933 --> 03:08:33,667 compensation etc. So we know 5181 03:08:33,667 --> 03:08:37,267 that that step is in there. 5182 03:08:38,505 --> 03:08:39,206 >> There is our current 5183 03:08:39,206 --> 03:08:42,806 understanding and I will I am 5184 03:08:43,744 --> 03:08:44,545 not a lawyer so a grain of salt 5185 03:08:44,545 --> 03:08:45,279 a high probability that at some 5186 03:08:45,279 --> 03:08:46,130 point an action like this would 5187 03:08:46,130 --> 03:08:49,130 probably need to go to 5188 03:08:49,884 --> 03:08:50,718 the ballot. 5189 03:08:50,718 --> 03:08:51,418 And so one of the I would say 5190 03:08:51,418 --> 03:08:55,180 the next step that moves this 5191 03:08:55,689 --> 03:08:56,357 past feasibility if there is 5192 03:08:56,357 --> 03:08:56,957 interest in continuing this 5193 03:08:56,957 --> 03:08:59,957 effort is moves it into 5194 03:09:00,928 --> 03:09:03,328 the kind of political 5195 03:09:05,933 --> 03:09:06,700 regulatory legal area. 5196 03:09:06,700 --> 03:09:07,368 >> What that looks like really 5197 03:09:07,368 --> 03:09:10,368 frankly is a discussion and 5198 03:09:11,805 --> 03:09:12,506 guidance that will be given to 5199 03:09:12,506 --> 03:09:13,207 staff from discussions between 5200 03:09:13,207 --> 03:09:13,975 the mayor's office and council 5201 03:09:13,975 --> 03:09:18,175 Randi, I don't know if you have 5202 03:09:19,346 --> 03:09:20,281 anything to add. 5203 03:09:20,281 --> 03:09:24,481 I would say that there is not 5204 03:09:24,718 --> 03:09:25,519 currently allocated resources 5205 03:09:25,519 --> 03:09:26,387 to go hire more consultants or 5206 03:09:26,387 --> 03:09:30,587 staff resources to go do a lot 5207 03:09:31,292 --> 03:09:31,692 of that work in this current 5208 03:09:31,692 --> 03:09:32,360 fiscal year. 5209 03:09:32,360 --> 03:09:32,993 So our intention is to watch 5210 03:09:32,993 --> 03:09:35,393 closely what happens with 5211 03:09:36,597 --> 03:09:37,298 the San Francisco case. 5212 03:09:37,298 --> 03:09:37,932 Well not exactly the same 5213 03:09:37,932 --> 03:09:40,932 scenario as what would be 5214 03:09:42,669 --> 03:09:43,337 the case in San Diego for a 5215 03:09:43,337 --> 03:09:44,500 number of different reasons 5216 03:09:44,500 --> 03:09:44,572 would certainly set a lot of 5217 03:09:44,572 --> 03:09:46,972 precedents in terms of 5218 03:09:48,309 --> 03:09:48,976 the valuation methodology and 5219 03:09:48,976 --> 03:09:49,644 the process that the city of 5220 03:09:49,644 --> 03:09:50,378 San Diego would go through. 5221 03:09:50,378 --> 03:09:53,378 I think there's other decisions 5222 03:09:54,114 --> 03:09:54,815 that would need to be made if 5223 03:09:54,815 --> 03:09:55,516 the city were to move forward, 5224 03:09:55,516 --> 03:09:55,983 what would be the structure of 5225 03:09:55,983 --> 03:09:56,584 the new entity? 5226 03:09:56,584 --> 03:09:59,520 Would that be a special 5227 03:09:59,520 --> 03:09:59,921 district as recommended in 5228 03:09:59,921 --> 03:10:00,655 the report? 5229 03:10:00,655 --> 03:10:01,880 What type of a special district 5230 03:10:01,880 --> 03:10:03,880 would that be? 5231 03:10:05,693 --> 03:10:06,360 That MAY or MAY not require a 5232 03:10:06,360 --> 03:10:07,280 ballot measure or a vote of 5233 03:10:07,280 --> 03:10:07,728 the people depending on how 5234 03:10:07,728 --> 03:10:11,328 that structured MAY or MAY not 5235 03:10:11,866 --> 03:10:12,633 require less co component. 5236 03:10:12,633 --> 03:10:13,301 Again, I'm also not an attorney 5237 03:10:13,301 --> 03:10:13,601 so I would defer to them on 5238 03:10:13,601 --> 03:10:14,202 that. 5239 03:10:14,202 --> 03:10:14,902 But there's a number of 5240 03:10:14,902 --> 03:10:17,302 different decisions that need 5241 03:10:17,705 --> 03:10:18,172 to be made about the structure 5242 03:10:18,172 --> 03:10:18,873 and the process. 5243 03:10:18,873 --> 03:10:19,574 But I think that the highest 5244 03:10:19,574 --> 03:10:23,174 priority for us since this is 5245 03:10:23,644 --> 03:10:24,311 kind of the new process 5246 03:10:24,311 --> 03:10:25,120 established by the state is 5247 03:10:25,120 --> 03:10:25,747 through this cpc is to really 5248 03:10:25,747 --> 03:10:28,747 monitor closely what happens in 5249 03:10:30,351 --> 03:10:30,651 the San Francisco pge case. 5250 03:10:30,651 --> 03:10:31,419 Okay. 5251 03:10:31,419 --> 03:10:32,860 i have a question for a 5252 03:10:32,860 --> 03:10:34,486 question about the district. 5253 03:10:35,223 --> 03:10:35,857 So I, I, I do believe that 5254 03:10:35,857 --> 03:10:38,857 the power system should be 5255 03:10:41,596 --> 03:10:42,330 governed by a nonprofit. 5256 03:10:42,330 --> 03:10:42,930 I do not believe the city of 5257 03:10:42,930 --> 03:10:43,598 San Diego as a beautiful 5258 03:10:43,598 --> 03:10:43,931 corporation is ready to take 5259 03:10:43,931 --> 03:10:45,931 this on. 5260 03:10:47,335 --> 03:10:47,735 We can barely operate a water 5261 03:10:47,735 --> 03:10:48,469 department. 5262 03:10:48,469 --> 03:10:49,700 We are struggling to figure out 5263 03:10:49,700 --> 03:10:49,771 if we can deploy our own 5264 03:10:49,771 --> 03:10:53,371 ambulance system if we have to 5265 03:10:53,908 --> 03:10:54,576 bring that in-house. 5266 03:10:54,576 --> 03:10:55,309 But I do believe there's 5267 03:10:55,309 --> 03:10:55,910 another opportunity and that is 5268 03:10:55,910 --> 03:10:58,310 what Sacramento did with 5269 03:11:01,482 --> 03:11:02,183 the Sacramento Municipal 5270 03:11:02,183 --> 03:11:02,817 Utility District And this is 5271 03:11:02,817 --> 03:11:03,518 what I hope the advocates 5272 03:11:03,518 --> 03:11:06,354 listen to the city ceo you you 5273 03:11:06,354 --> 03:11:06,987 get a sales tax passed last 5274 03:11:06,987 --> 03:11:07,355 year because voters didn't 5275 03:11:07,355 --> 03:11:08,220 trust us. 5276 03:11:08,220 --> 03:11:08,756 I think the better option is 5277 03:11:08,756 --> 03:11:11,626 not to saddle this on the city 5278 03:11:11,626 --> 03:11:12,360 the better option is to create 5279 03:11:12,360 --> 03:11:13,940 a public utility district which 5280 03:11:13,940 --> 03:11:16,694 is run by experts And but 5281 03:11:19,401 --> 03:11:20,101 the only way anyone would vote 5282 03:11:20,101 --> 03:11:20,802 for this and I would vote for 5283 03:11:20,802 --> 03:11:21,436 this is if there was concrete 5284 03:11:21,436 --> 03:11:22,137 new protections for union 5285 03:11:22,137 --> 03:11:24,773 workers and they should have a 5286 03:11:24,773 --> 03:11:25,540 role in the ballot measure if 5287 03:11:25,540 --> 03:11:26,241 we're ever to get to that point 5288 03:11:26,241 --> 03:11:26,941 because there's no way I would 5289 03:11:26,941 --> 03:11:29,444 You're working with us and we 5290 03:11:29,444 --> 03:11:30,780 need our workers to provide 5291 03:11:30,780 --> 03:11:30,912 the power we need anyway. 5292 03:11:30,912 --> 03:11:34,512 So how would that process look 5293 03:11:34,949 --> 03:11:35,617 like? 5294 03:11:35,617 --> 03:11:36,284 >> As Randy mentioned, 5295 03:11:36,284 --> 03:11:38,684 the special district process 5296 03:11:40,188 --> 03:11:40,889 looks different depending on 5297 03:11:40,889 --> 03:11:41,256 one or multiple parties going 5298 03:11:41,256 --> 03:11:41,990 after it. 5299 03:11:41,990 --> 03:11:46,190 This is all kind of outlined in 5300 03:11:46,361 --> 03:11:47,128 California Public utilities 5301 03:11:47,128 --> 03:11:49,528 code so various structures 5302 03:11:52,801 --> 03:11:53,501 require votes by council and 5303 03:11:53,501 --> 03:11:54,135 then going to the ballot Some 5304 03:11:54,135 --> 03:11:54,669 of them it can be go to 5305 03:11:54,669 --> 03:11:56,669 the ballot directly. 5306 03:11:59,341 --> 03:11:59,941 So a lot of it is the structure 5307 03:11:59,941 --> 03:12:00,642 that is put in place and 5308 03:12:00,642 --> 03:12:01,309 therefore the special district 5309 03:12:01,309 --> 03:12:04,309 is defined by public utility 5310 03:12:04,446 --> 03:12:05,346 code. 5311 03:12:05,346 --> 03:12:06,140 I'm happy to follow up with you 5312 03:12:06,140 --> 03:12:06,281 with those specific areas of 5313 03:12:06,281 --> 03:12:06,982 law. 5314 03:12:06,982 --> 03:12:11,520 I do not want to even attempt 5315 03:12:11,520 --> 03:12:11,920 to quote them off the cuff yet. 5316 03:12:11,920 --> 03:12:12,287 >> Sounds like a lack of 5317 03:12:12,287 --> 03:12:14,287 question. 5318 03:12:16,191 --> 03:12:16,958 Understood that a question 5319 03:12:16,958 --> 03:12:17,659 about this valuation I have a 5320 03:12:17,659 --> 03:12:18,360 feeling it's going to be much 5321 03:12:18,360 --> 03:12:21,360 higher than what's even the $7 5322 03:12:23,231 --> 03:12:23,965 billion just because you know I 5323 03:12:23,965 --> 03:12:24,700 don't think you do You wouldn't 5324 03:12:24,700 --> 03:12:27,636 willingly sell its assets which 5325 03:12:27,636 --> 03:12:28,336 means it would go to some kind 5326 03:12:28,336 --> 03:12:28,770 of eminent domain for closure. 5327 03:12:28,770 --> 03:12:29,438 I don't know. 5328 03:12:29,438 --> 03:12:30,105 And that would be litigated 5329 03:12:30,105 --> 03:12:33,705 every step of the way which 5330 03:12:34,309 --> 03:12:34,743 would increase the cost 5331 03:12:34,743 --> 03:12:35,444 exponentially. 5332 03:12:35,444 --> 03:12:36,144 So just I have a feeling that 5333 03:12:36,144 --> 03:12:39,744 what's going to happen in San 5334 03:12:39,948 --> 03:12:40,716 Francisco a wealthy the one 5335 03:12:40,716 --> 03:12:44,916 thing I do give you credit for 5336 03:12:45,921 --> 03:12:46,554 every time we're here is 5337 03:12:46,554 --> 03:12:47,222 the wildfire work they are 5338 03:12:47,222 --> 03:12:47,923 doing which the Witch Creek 5339 03:12:47,923 --> 03:12:51,293 Fire didn't have to happen to 5340 03:12:51,293 --> 03:12:51,994 have that led down that path by 5341 03:12:51,994 --> 03:12:52,694 the emergency operation center 5342 03:12:52,694 --> 03:12:53,228 to see if you need to start up 5343 03:12:53,228 --> 03:12:56,228 is state of the art. 5344 03:12:57,766 --> 03:12:58,433 It's incredible. 5345 03:12:58,433 --> 03:12:59,168 It's catching fires left and 5346 03:12:59,168 --> 03:12:59,868 right And I appreciate the fact 5347 03:12:59,868 --> 03:13:02,868 that they've also invested in 5348 03:13:02,871 --> 03:13:03,639 wildfire attack helicopters. 5349 03:13:03,639 --> 03:13:04,339 So does this study also 5350 03:13:04,339 --> 03:13:05,400 encapsulate the cost of taking 5351 03:13:05,400 --> 03:13:07,440 over the emergency operations 5352 03:13:08,812 --> 03:13:09,545 center Because we cannot take 5353 03:13:09,545 --> 03:13:10,245 over utility if we're not going 5354 03:13:10,245 --> 03:13:13,245 to protect us from wildfires. 5355 03:13:14,349 --> 03:13:14,983 It doesn't because the vast 5356 03:13:14,983 --> 03:13:17,983 majority of the area that 5357 03:13:20,689 --> 03:13:21,256 the eoc monitors is not within 5358 03:13:21,256 --> 03:13:21,957 the city of San Diego. 5359 03:13:21,957 --> 03:13:22,624 It does imagine a portion of 5360 03:13:22,624 --> 03:13:25,624 the costs that currently are 5361 03:13:26,128 --> 03:13:26,829 expended within wildfire 5362 03:13:26,829 --> 03:13:27,563 mitigation as a part of 5363 03:13:27,563 --> 03:13:28,263 the overall operating costs and 5364 03:13:28,263 --> 03:13:31,263 thus a revenue requirement for 5365 03:13:33,350 --> 03:13:33,702 the utility as well as pieces 5366 03:13:33,702 --> 03:13:34,402 of you know there's someone 5367 03:13:34,402 --> 03:13:36,802 mentioned liability so there's 5368 03:13:38,640 --> 03:13:39,341 liability insurance etc. So 5369 03:13:39,341 --> 03:13:39,942 that would need to be carried 5370 03:13:39,942 --> 03:13:40,376 for those areas that are 5371 03:13:40,376 --> 03:13:42,376 subject to it. 5372 03:13:45,113 --> 03:13:45,748 But again I think it's 5373 03:13:45,748 --> 03:13:46,481 remembering that if you're 5374 03:13:46,481 --> 03:13:47,182 separating out the system, what 5375 03:13:47,182 --> 03:13:50,782 now there also then would need 5376 03:13:50,786 --> 03:13:51,487 to be coordination between 5377 03:13:51,487 --> 03:13:52,120 the two and that kind of goes 5378 03:13:52,120 --> 03:13:54,520 to about just compensation 5379 03:13:57,559 --> 03:13:58,427 piece of how much has already 5380 03:13:58,427 --> 03:14:02,270 been paid for by San Diego 5381 03:14:03,332 --> 03:14:04,330 ratepayers how much would 5382 03:14:04,330 --> 03:14:04,733 therefore need to be And some 5383 03:14:04,733 --> 03:14:08,804 of that is also subject to you 5384 03:14:08,804 --> 03:14:09,605 know the cpc as was mentioned 5385 03:14:09,605 --> 03:14:10,139 as dgt makes a revenue request 5386 03:14:10,139 --> 03:14:10,806 specifically within 5387 03:14:10,806 --> 03:14:11,440 the wildfire mitigation fund 5388 03:14:11,440 --> 03:14:14,440 that includes the cost of 5389 03:14:15,878 --> 03:14:16,579 operation of the that's the cpc 5390 03:14:16,579 --> 03:14:17,312 then decides how much of that 5391 03:14:17,312 --> 03:14:17,980 can and cannot be rate based or 5392 03:14:17,980 --> 03:14:20,549 should or should not be 5393 03:14:20,549 --> 03:14:21,317 expended. 5394 03:14:21,317 --> 03:14:24,317 And so what role for 5395 03:14:27,356 --> 03:14:28,900 the municipal utility in an 5396 03:14:28,900 --> 03:14:28,891 area that is definitely at risk 5397 03:14:28,891 --> 03:14:32,491 because of fires in not its 5398 03:14:33,362 --> 03:14:34,630 territory pays and plays in 5399 03:14:34,630 --> 03:14:34,763 the operations to ensure that 5400 03:14:34,763 --> 03:14:37,763 those fires don't get anywhere 5401 03:14:39,468 --> 03:14:40,690 near the territory would all be 5402 03:14:40,690 --> 03:14:40,603 part of the negotiations 5403 03:14:40,603 --> 03:14:41,203 between the parties. 5404 03:14:41,203 --> 03:14:43,603 So the feasibility study 5405 03:14:45,140 --> 03:14:45,875 incorporates modeled costs for 5406 03:14:45,875 --> 03:14:49,475 that but it doesn't outline for 5407 03:14:50,379 --> 03:14:51,113 a whole bunch of reasons how 5408 03:14:51,113 --> 03:14:51,747 specifically those negotiations 5409 03:14:51,747 --> 03:14:52,448 would go because simply we 5410 03:14:52,448 --> 03:14:52,882 can't speak for the other side 5411 03:14:52,882 --> 03:14:54,882 of the table. 5412 03:14:56,886 --> 03:14:57,586 Okay, got it. 5413 03:14:57,586 --> 03:14:58,254 But that would be something 5414 03:14:58,254 --> 03:14:58,988 that's incredibly important 5415 03:14:58,988 --> 03:15:02,588 that needs to be thought about. 5416 03:15:04,594 --> 03:15:05,428 Absolutely. 5417 03:15:05,428 --> 03:15:06,162 Yeah, I was I suppose you would 5418 03:15:06,162 --> 03:15:09,162 require utility to do something 5419 03:15:11,300 --> 03:15:12,340 similar So we satellite involve 5420 03:15:12,340 --> 03:15:12,735 ours of another state but there 5421 03:15:12,735 --> 03:15:13,101 are many things I wish the cbc 5422 03:15:13,101 --> 03:15:13,402 would do. 5423 03:15:13,402 --> 03:15:13,702 Okay. 5424 03:15:13,702 --> 03:15:15,702 Okay. 5425 03:15:18,741 --> 03:15:19,308 My last my colleagues have 5426 03:15:19,308 --> 03:15:20,176 covered a lot of this. 5427 03:15:20,176 --> 03:15:23,946 I mean what about the fact that 5428 03:15:23,946 --> 03:15:24,647 there's an 8.6% request for a 5429 03:15:24,647 --> 03:15:25,348 rate hike and the feasibility 5430 03:15:25,348 --> 03:15:25,648 study had anticipated four per 5431 03:15:25,648 --> 03:15:27,648 year? 5432 03:15:29,885 --> 03:15:30,786 You know what is this large 5433 03:15:30,786 --> 03:15:31,521 hike that I see Judy want to 5434 03:15:31,521 --> 03:15:32,155 add to our bills once again due 5435 03:15:32,155 --> 03:15:32,455 to the feasibility study? 5436 03:15:32,455 --> 03:15:34,455 Sure. 5437 03:15:35,825 --> 03:15:36,492 So I think some of the thing to 5438 03:15:36,492 --> 03:15:37,193 remember is over a 30 year 5439 03:15:37,193 --> 03:15:39,593 horizon we specifically picked 5440 03:15:39,595 --> 03:15:40,196 4% one because historically in 5441 03:15:40,196 --> 03:15:40,830 the past two grc that's 5442 03:15:40,830 --> 03:15:41,197 approximately been the end 5443 03:15:41,197 --> 03:15:43,197 decision. 5444 03:15:46,269 --> 03:15:47,360 So cgu usually asks for more 5445 03:15:47,360 --> 03:15:51,236 money and then it gets cut down 5446 03:15:51,674 --> 03:15:52,441 through the grc process. 5447 03:15:52,441 --> 03:15:53,420 So fundamentally if you look at 5448 03:15:53,420 --> 03:15:55,420 that sensitivity graph, 5449 03:15:57,847 --> 03:15:58,448 the higher the rate increase 5450 03:15:58,448 --> 03:15:59,115 annually for us, Jenny, 5451 03:15:59,115 --> 03:16:01,515 the more cumulative benefit 5452 03:16:04,220 --> 03:16:04,921 there would be for utility that 5453 03:16:04,921 --> 03:16:05,455 is only replacing its revenue 5454 03:16:05,455 --> 03:16:07,455 requirements, right? 5455 03:16:10,260 --> 03:16:10,726 And so you can kind of say if 5456 03:16:10,726 --> 03:16:11,361 their rates are significantly 5457 03:16:11,361 --> 03:16:12,270 higher than they're saying 5458 03:16:12,270 --> 03:16:14,427 their revenue requirement is 5459 03:16:15,298 --> 03:16:15,832 significantly higher than 5460 03:16:15,832 --> 03:16:16,533 the That's what that 5461 03:16:16,533 --> 03:16:17,660 distinction is because this is 5462 03:16:17,660 --> 03:16:19,660 just their proposal. 5463 03:16:21,571 --> 03:16:22,272 We don't know what the cpc is 5464 03:16:22,272 --> 03:16:23,139 going to decide And because it 5465 03:16:23,139 --> 03:16:26,750 is frankly only a four year 5466 03:16:26,750 --> 03:16:26,876 picture and we're trying to do 5467 03:16:26,876 --> 03:16:29,876 a 30 year model providing a 5468 03:16:32,148 --> 03:16:32,848 conservative estimate is gives 5469 03:16:32,848 --> 03:16:36,448 us and it's still feasible at 5470 03:16:37,186 --> 03:16:37,820 4% then at 6% it is also 5471 03:16:37,820 --> 03:16:38,521 feasible from an economic 5472 03:16:38,521 --> 03:16:39,155 perspective at 8% it is still 5473 03:16:39,155 --> 03:16:41,555 feasible from an economic 5474 03:16:43,260 --> 03:16:43,860 perspective. 5475 03:16:43,860 --> 03:16:44,561 So it's 8% increase in 20 I'm 5476 03:16:44,561 --> 03:16:46,961 sorry it's overall in 5477 03:16:49,466 --> 03:16:50,367 the system it's actually a 5% 5478 03:16:50,367 --> 03:16:53,967 increase in f y 28 sorry in 5479 03:16:54,504 --> 03:16:55,105 2028 from 2027 rates So we 5480 03:16:55,105 --> 03:16:57,505 haven't seen those yet. 5481 03:16:59,609 --> 03:17:00,410 2028 is 8.5% and then 20 sorry 5482 03:17:00,410 --> 03:17:00,877 2029 is 8.5% and then 2030 and 5483 03:17:00,877 --> 03:17:02,877 2031 about 5.5%. 5484 03:17:04,848 --> 03:17:05,548 So again we're trying to blend 5485 03:17:05,548 --> 03:17:08,548 out a 30 year annual rate 5486 03:17:09,886 --> 03:17:10,587 increase in order to make those 5487 03:17:10,587 --> 03:17:11,187 numbers line up accurately and 5488 03:17:11,187 --> 03:17:11,855 ensure when we say it's 5489 03:17:11,855 --> 03:17:13,855 economically feasible you're 5490 03:17:16,593 --> 03:17:19,593 doing that with a responsibly 5491 03:17:22,532 --> 03:17:23,200 conservative number on 5492 03:17:23,200 --> 03:17:23,900 the Jenny side so you're not 5493 03:17:23,900 --> 03:17:26,300 overpromising savings that MAY 5494 03:17:28,538 --> 03:17:28,838 or MAY not manifest. 5495 03:17:28,838 --> 03:17:29,239 Okay. 5496 03:17:29,239 --> 03:17:29,606 Understood. 5497 03:17:29,606 --> 03:17:30,239 Thank you. 5498 03:17:30,239 --> 03:17:31,740 Thank you for the update. 5499 03:17:31,740 --> 03:17:34,674 Thank you for going down this 5500 03:17:35,145 --> 03:17:35,912 incredibly complex study and 5501 03:17:35,912 --> 03:17:36,513 what we're trying to do to at 5502 03:17:36,513 --> 03:17:37,180 least give the city and 5503 03:17:37,180 --> 03:17:40,180 the residents who live here 5504 03:17:42,152 --> 03:17:42,519 some kind of negotiating power 5505 03:17:42,519 --> 03:17:43,487 over city. 5506 03:17:43,487 --> 03:17:47,687 You know, it's very hard to do 5507 03:17:47,858 --> 03:17:48,558 that when did the monopoly but 5508 03:17:48,558 --> 03:17:49,259 it has to include protections 5509 03:17:49,259 --> 03:17:49,926 for our workers who work very 5510 03:17:49,926 --> 03:17:52,663 hard to make sure the lights 5511 03:17:52,663 --> 03:17:53,363 and the gas are literally 5512 03:17:53,363 --> 03:17:54,640 turned on every day And it 5513 03:17:54,640 --> 03:17:56,464 needs to account for 5514 03:17:58,435 --> 03:17:59,102 the catastrophic litigation 5515 03:17:59,102 --> 03:17:59,770 costs that are going to come 5516 03:17:59,770 --> 03:18:00,700 with trying to separate from 5517 03:18:00,700 --> 03:18:00,771 this. 5518 03:18:00,771 --> 03:18:04,371 But again, that's why I think 5519 03:18:05,909 --> 03:18:06,609 the utility district would be 5520 03:18:06,609 --> 03:18:07,277 better to take this on to 5521 03:18:07,277 --> 03:18:07,978 the city of San Diego itself 5522 03:18:07,978 --> 03:18:11,181 because that could be a fight 5523 03:18:11,181 --> 03:18:12,480 the good fight the city and I 5524 03:18:12,480 --> 03:18:13,160 don't think we can do this on 5525 03:18:13,160 --> 03:18:16,987 our own in a city needs to 5526 03:18:16,987 --> 03:18:17,821 charge lower rates. 5527 03:18:17,821 --> 03:18:18,622 We have no ability to handle 5528 03:18:18,622 --> 03:18:22,822 that here at the city of San 5529 03:18:23,193 --> 03:18:23,894 Diego We did Under California 5530 03:18:23,894 --> 03:18:24,527 state law it is Sacramento to 5531 03:18:24,527 --> 03:18:28,127 decide how and when a city 5532 03:18:28,599 --> 03:18:29,299 charges its rates. 5533 03:18:29,299 --> 03:18:29,900 However, in the next few years 5534 03:18:29,900 --> 03:18:30,634 in 20 2030 our franchise 5535 03:18:30,634 --> 03:18:33,634 agreement could be opened up 5536 03:18:35,539 --> 03:18:36,106 again by the future City 5537 03:18:36,106 --> 03:18:36,673 Council who sits here. 5538 03:18:36,673 --> 03:18:37,474 I will be termed out. 5539 03:18:37,474 --> 03:18:39,476 Many of us will be turned out 5540 03:18:39,476 --> 03:18:40,143 but we are trying to do is make 5541 03:18:40,143 --> 03:18:40,677 sure that 2030 if the future 5542 03:18:40,677 --> 03:18:41,345 Council wants to put 5543 03:18:41,345 --> 03:18:44,945 the pressure on cgt to lower 5544 03:18:45,582 --> 03:18:46,249 rates they will now be able to 5545 03:18:46,249 --> 03:18:46,917 do that because of the work 5546 03:18:46,917 --> 03:18:47,450 we're doing going down this 5547 03:18:47,450 --> 03:18:48,185 road with the public 5548 03:18:48,185 --> 03:18:51,185 marketability study and we need 5549 03:18:52,189 --> 03:18:52,856 to continue to strengthen our 5550 03:18:52,856 --> 03:18:53,156 hand to lower rates for our 5551 03:18:53,156 --> 03:18:53,824 state. 5552 03:18:53,824 --> 03:18:54,124 You need to they charge too 5553 03:18:54,124 --> 03:18:56,124 much. 5554 03:18:57,594 --> 03:18:57,995 Thank you. 5555 03:18:57,995 --> 03:18:58,562 All right. 5556 03:18:58,562 --> 03:18:59,229 Thank you, gentlemen. 5557 03:18:59,229 --> 03:18:59,797 Bonneville We'll go next to 5558 03:18:59,797 --> 03:19:01,632 Councilmember Flippen. 5559 03:19:01,632 --> 03:19:02,399 Thank you, Council PRESIDENT. 5560 03:19:02,399 --> 03:19:03,100 First of all, thank you to 5561 03:19:03,100 --> 03:19:05,500 everybody who provided public 5562 03:19:07,705 --> 03:19:08,672 comment this afternoon. 5563 03:19:08,672 --> 03:19:09,306 I took a lot of notes, very 5564 03:19:09,306 --> 03:19:10,400 interesting comments from 5565 03:19:10,400 --> 03:19:12,440 everybody here appreciated that 5566 03:19:13,344 --> 03:19:14,440 I have a few questions for our 5567 03:19:14,440 --> 03:19:17,440 consultant There is it says 5568 03:19:19,490 --> 03:19:19,783 the potential for average 5569 03:19:19,783 --> 03:19:22,783 customer savings of $500 a year 5570 03:19:24,821 --> 03:19:25,489 or which would equate to about 5571 03:19:25,489 --> 03:19:26,390 $42 about the end of the 30 5572 03:19:26,390 --> 03:19:29,990 year study period is that in 5573 03:19:31,395 --> 03:19:33,795 today's dollars 30 years from 5574 03:19:38,736 --> 03:19:39,130 now $42 MAY not seem like that 5575 03:19:39,130 --> 03:19:39,703 much. 5576 03:19:39,703 --> 03:19:40,271 So if you say the potential 5577 03:19:40,271 --> 03:19:42,539 savings then would be 5578 03:19:42,539 --> 03:19:43,307 the equivalent of what $42 5579 03:19:43,307 --> 03:19:44,800 about this today or would it be 5580 03:19:44,800 --> 03:19:46,408 $42.30 years from now to 5581 03:19:49,547 --> 03:19:50,247 the extent the analysis is 5582 03:19:50,247 --> 03:19:50,915 looking at a sort of average 5583 03:19:50,915 --> 03:19:51,515 bill, it would be in today's 5584 03:19:51,515 --> 03:19:52,115 dollars We're looking at 5585 03:19:52,115 --> 03:19:54,515 the percentage that were 5586 03:19:54,851 --> 03:19:55,453 proposed or was projected to be 5587 03:19:55,453 --> 03:19:57,853 relative to the savings. 5588 03:20:00,324 --> 03:20:00,991 And looking at the flip side, 5589 03:20:00,991 --> 03:20:01,592 you talk about the risk What 5590 03:20:01,592 --> 03:20:04,592 would be the worst case 5591 03:20:06,130 --> 03:20:06,931 scenario if things went south 5592 03:20:06,931 --> 03:20:11,131 in term in real terms what bad 5593 03:20:12,303 --> 03:20:13,170 things could happen to the city 5594 03:20:13,170 --> 03:20:17,370 in terms of what bad things I 5595 03:20:19,410 --> 03:20:19,722 mean, you know, who knows, 5596 03:20:19,722 --> 03:20:20,478 right? 5597 03:20:20,478 --> 03:20:24,678 I mean you could say that that 5598 03:20:25,183 --> 03:20:25,816 I mean I don't really know that 5599 03:20:25,816 --> 03:20:26,484 to tell you the truth. 5600 03:20:26,484 --> 03:20:27,185 But what bad things could 5601 03:20:27,185 --> 03:20:27,885 happen is that is that the you 5602 03:20:27,885 --> 03:20:30,885 know, the utility could incur 5603 03:20:30,955 --> 03:20:31,689 you know, costs like any other 5604 03:20:31,689 --> 03:20:32,423 utility incurred costs and have 5605 03:20:32,423 --> 03:20:36,623 to pass those costs on to a 5606 03:20:37,428 --> 03:20:38,129 ratepayer right Just in terms 5607 03:20:38,129 --> 03:20:38,896 of commodity cost, in terms of 5608 03:20:38,896 --> 03:20:42,496 all the costs that it takes 5609 03:20:43,801 --> 03:20:44,435 operating ability there's 5610 03:20:44,435 --> 03:20:46,835 there's always a potential 5611 03:20:48,907 --> 03:20:49,607 those costs could exceed beyond 5612 03:20:49,607 --> 03:20:50,308 what anybody could imagine and 5613 03:20:50,308 --> 03:20:51,175 then in which case those costs 5614 03:20:51,175 --> 03:20:54,479 would have to be recovered by 5615 03:20:54,479 --> 03:20:54,879 ratepayers. 5616 03:20:54,879 --> 03:20:55,513 Okay. 5617 03:20:55,513 --> 03:20:56,314 So essentially you're not 5618 03:20:56,314 --> 03:20:59,914 seeing a lot of financial risk 5619 03:21:02,186 --> 03:21:02,820 for the city as I mean it's a 5620 03:21:02,820 --> 03:21:03,488 poor entity in of itself. 5621 03:21:03,488 --> 03:21:06,488 You would see the financial 5622 03:21:06,524 --> 03:21:07,910 risk as being contained within 5623 03:21:07,910 --> 03:21:09,910 the utility structure. 5624 03:21:12,864 --> 03:21:13,531 Okay. 5625 03:21:13,531 --> 03:21:14,232 You've prepared a 200 page 5626 03:21:14,232 --> 03:21:16,632 report and analysis on 5627 03:21:19,437 --> 03:21:20,138 the feasibility Based on what 5628 03:21:20,138 --> 03:21:20,872 you know in your expertise, do 5629 03:21:20,872 --> 03:21:24,472 you think that San Diego should 5630 03:21:24,876 --> 03:21:25,677 go to a minimal utility? 5631 03:21:25,677 --> 03:21:26,377 I believe the report suggests 5632 03:21:26,377 --> 03:21:26,744 that it's financially feasible 5633 03:21:26,744 --> 03:21:28,744 to do so. 5634 03:21:30,515 --> 03:21:31,282 Okay. 5635 03:21:31,282 --> 03:21:31,950 I will turn now to the Office 5636 03:21:31,950 --> 03:21:34,350 of the Independent Budget 5637 03:21:36,588 --> 03:21:39,588 Analyst MR. Boer, your thoughts 5638 03:21:40,658 --> 03:21:42,658 on this? 5639 03:21:47,499 --> 03:21:48,299 My thoughts on this are many So 5640 03:21:48,299 --> 03:21:49,000 I will tell you what I've been 5641 03:21:49,000 --> 03:21:49,434 telling sort of leading up to 5642 03:21:49,434 --> 03:21:50,134 this meeting. 5643 03:21:50,134 --> 03:21:53,134 >> I've had many meetings I've 5644 03:21:54,405 --> 03:21:55,400 met with general Services, I've 5645 03:21:55,400 --> 03:21:55,740 met with Public power San 5646 03:21:55,740 --> 03:21:59,310 Diego, I've met with San Diego 5647 03:21:59,310 --> 03:21:59,910 Gas and Electric all three 5648 03:21:59,910 --> 03:22:00,512 entities the same thing. 5649 03:22:00,512 --> 03:22:01,146 We've had three studies. 5650 03:22:01,146 --> 03:22:03,146 They're all directionally 5651 03:22:05,216 --> 03:22:06,170 pointing the same direction 5652 03:22:06,170 --> 03:22:06,584 which is yeah, it's most likely 5653 03:22:06,584 --> 03:22:07,252 economically feasible. 5654 03:22:07,252 --> 03:22:10,252 The questions that are still 5655 03:22:11,322 --> 03:22:11,756 being raised how much is it 5656 03:22:11,756 --> 03:22:12,457 going to cost? 5657 03:22:12,457 --> 03:22:12,991 What's the revenue projections 5658 03:22:12,991 --> 03:22:15,391 going to look like? 5659 03:22:17,729 --> 03:22:18,630 Those types of things Another 5660 03:22:18,630 --> 03:22:19,330 study is not going to tell you 5661 03:22:19,330 --> 03:22:19,998 because there are things that 5662 03:22:19,998 --> 03:22:23,268 need to be worked out either 5663 03:22:23,268 --> 03:22:23,968 through the cpc proceeding or 5664 03:22:23,968 --> 03:22:24,636 somebody writing down on a 5665 03:22:24,636 --> 03:22:25,270 ballot measure What is this 5666 03:22:25,270 --> 03:22:28,270 thing going to look like? 5667 03:22:30,908 --> 03:22:31,642 What is structure going to be 5668 03:22:31,642 --> 03:22:32,310 and how is it going to operate 5669 03:22:32,310 --> 03:22:32,978 And then sending that ballot 5670 03:22:32,978 --> 03:22:33,345 measure to the people for a 5671 03:22:33,345 --> 03:22:35,345 decision. 5672 03:22:36,414 --> 03:22:36,948 So at this point I think 5673 03:22:36,948 --> 03:22:37,648 the study is sound. 5674 03:22:37,648 --> 03:22:41,248 It's a sound of the committee. 5675 03:22:42,321 --> 03:22:42,988 It's showing a path that could 5676 03:22:42,988 --> 03:22:43,855 be taken with known risks At 5677 03:22:43,855 --> 03:22:47,455 this point as Heather kind of 5678 03:22:48,126 --> 03:22:48,727 alluded to earlier, it's now a 5679 03:22:48,727 --> 03:22:49,294 policy decision on what 5680 03:22:49,294 --> 03:22:52,294 the people want to do. 5681 03:22:54,132 --> 03:22:55,000 How would you want to frame it 5682 03:22:55,000 --> 03:22:55,700 and how would you want to craft 5683 03:22:55,700 --> 03:22:56,401 If you want to craft a ballot 5684 03:22:56,401 --> 03:23:00,100 measure, how is that going to 5685 03:23:00,205 --> 03:23:01,390 look That will start answering 5686 03:23:01,390 --> 03:23:01,706 a lot of the questions that are 5687 03:23:01,706 --> 03:23:05,243 here today but it's kind of 5688 03:23:05,243 --> 03:23:06,144 going above the staff paper of 5689 03:23:06,144 --> 03:23:09,744 you know what they can answer 5690 03:23:12,830 --> 03:23:12,411 for you. 5691 03:23:12,411 --> 03:23:13,850 Okay. 5692 03:23:13,850 --> 03:23:13,452 Thank you, Council PRESIDENT. 5693 03:23:13,452 --> 03:23:14,190 All right. 5694 03:23:14,190 --> 03:23:16,190 Thank you, gentlemen. 5695 03:23:17,822 --> 03:23:18,491 Whitburn we'll go next to 5696 03:23:18,491 --> 03:23:19,570 Council member Campion Thank 5697 03:23:19,570 --> 03:23:19,691 you very much, Council 5698 03:23:19,691 --> 03:23:22,691 PRESIDENT And thank you to 5699 03:23:23,428 --> 03:23:23,962 the public for your 5700 03:23:23,962 --> 03:23:24,496 participation today. 5701 03:23:24,496 --> 03:23:25,129 Obviously a very big 5702 03:23:25,129 --> 03:23:27,529 conversation for our city 5703 03:23:29,367 --> 03:23:30,235 talking about over $10 billion 5704 03:23:30,235 --> 03:23:34,435 in one way or another in cost 5705 03:23:35,407 --> 03:23:35,807 and potentially more than that 5706 03:23:35,807 --> 03:23:36,675 in savings. 5707 03:23:36,675 --> 03:23:41,475 I want to get to the heart of 5708 03:23:41,680 --> 03:23:42,447 some key questions that keep 5709 03:23:42,447 --> 03:23:43,148 coming up in this is it's not 5710 03:23:43,148 --> 03:23:46,748 very often we have both sides 5711 03:23:46,985 --> 03:23:47,453 of the debate here to be able 5712 03:23:47,453 --> 03:23:48,187 to answer them. 5713 03:23:48,187 --> 03:23:48,887 I think the first thing I want 5714 03:23:48,887 --> 03:23:49,588 to point out is that we're not 5715 03:23:49,588 --> 03:23:52,588 going to get anywhere without 5716 03:23:53,492 --> 03:23:54,159 our workers who repair 5717 03:23:54,159 --> 03:23:54,860 the lines and make sure our 5718 03:23:54,860 --> 03:23:57,860 energy gets to our hospitals. 5719 03:23:59,264 --> 03:24:00,132 Schools and homes are taken 5720 03:24:00,132 --> 03:24:00,833 care of and that their jobs are 5721 03:24:00,833 --> 03:24:03,233 protected because they're just 5722 03:24:04,703 --> 03:24:05,504 too many livelihoods at risk to 5723 03:24:05,504 --> 03:24:06,205 make sure that they don't don't 5724 03:24:06,205 --> 03:24:09,205 get to continue their careers, 5725 03:24:09,808 --> 03:24:10,476 have their retirements 5726 03:24:10,476 --> 03:24:12,876 protected and their families 5727 03:24:16,849 --> 03:24:17,483 cared for. 5728 03:24:17,483 --> 03:24:18,117 The representative from sd 5729 03:24:18,117 --> 03:24:18,784 Eugenie would come to that 5730 03:24:18,784 --> 03:24:21,784 answer a few questions just 5731 03:24:25,424 --> 03:24:25,824 very directly. 5732 03:24:25,824 --> 03:24:26,125 Thank you. 5733 03:24:26,125 --> 03:24:28,125 MRS.. 5734 03:24:30,796 --> 03:24:31,497 Thank you for being here. 5735 03:24:31,497 --> 03:24:32,364 Given the report that's in 5736 03:24:32,364 --> 03:24:35,964 front of us very explicitly and 5737 03:24:37,269 --> 03:24:38,370 directly, what is the issue 5738 03:24:38,370 --> 03:24:41,370 that you believe makes whether 5739 03:24:42,942 --> 03:24:43,609 it's municipal ization or a 5740 03:24:43,609 --> 03:24:46,900 nonprofit utility which are 5741 03:24:49,114 --> 03:24:49,448 very close to the same in this 5742 03:24:49,448 --> 03:24:50,115 debate? 5743 03:24:50,115 --> 03:24:53,715 What's what do you think is 5744 03:24:54,820 --> 03:24:55,121 the most risky part of that 5745 03:24:55,121 --> 03:24:55,421 plan? 5746 03:24:55,421 --> 03:24:56,880 Sure. 5747 03:24:56,880 --> 03:24:56,655 I think the riskiest part of 5748 03:24:56,655 --> 03:24:59,655 the plan is the cost. 5749 03:25:01,127 --> 03:25:01,793 I don't think this report 5750 03:25:01,793 --> 03:25:02,594 captures the full cost to 5751 03:25:02,594 --> 03:25:06,794 acquire our assets And as I was 5752 03:25:07,132 --> 03:25:07,800 talking about the exit fee to 5753 03:25:07,800 --> 03:25:10,200 make other customers whole. 5754 03:25:11,671 --> 03:25:12,271 So if you even take the 9 5755 03:25:12,271 --> 03:25:12,805 billion just to acquire 5756 03:25:12,805 --> 03:25:14,805 the assets, separate 5757 03:25:17,900 --> 03:25:17,643 the separate the system and 5758 03:25:17,643 --> 03:25:18,244 then ensure that the other 5759 03:25:18,244 --> 03:25:18,878 cities in our territory. 5760 03:25:18,878 --> 03:25:21,278 Chula Vista Imperial Beach 5761 03:25:24,717 --> 03:25:25,384 Alcohol and Carlsbad don't see 5762 03:25:25,384 --> 03:25:27,784 a significant rate increase 5763 03:25:29,288 --> 03:25:30,560 when the city leaves The city 5764 03:25:30,560 --> 03:25:30,723 of San Diego would have to pay 5765 03:25:30,723 --> 03:25:33,723 a significant fee to ensure 5766 03:25:35,261 --> 03:25:35,928 that that that doesn't happen. 5767 03:25:35,928 --> 03:25:36,262 That would be billions of 5768 03:25:36,262 --> 03:25:37,290 dollars. 5769 03:25:37,290 --> 03:25:40,629 So you're taking an asset to 5770 03:25:41,000 --> 03:25:41,605 purchase the assets of $9.3 5771 03:25:41,605 --> 03:25:42,335 billion and then several 5772 03:25:42,335 --> 03:25:45,935 billion dollars on top of that. 5773 03:25:47,340 --> 03:25:48,400 The feasibility study itself 5774 03:25:48,400 --> 03:25:49,800 says that it's $7.5 billion. 5775 03:25:49,800 --> 03:25:51,778 There will be a rate increase 5776 03:25:51,778 --> 03:25:52,511 for the first 12 years. 5777 03:25:52,511 --> 03:25:56,150 Then at some point rates going 5778 03:25:56,150 --> 03:25:56,649 to flatten out And in 30 years 5779 03:25:56,649 --> 03:25:57,150 there's a very de minimus 5780 03:25:57,150 --> 03:25:57,850 decrease in rates. 5781 03:25:57,850 --> 03:26:01,687 I can just things that we can 5782 03:26:01,687 --> 03:26:02,355 be doing right now to reduce 5783 03:26:02,355 --> 03:26:02,989 rates that we'd love to work 5784 03:26:02,989 --> 03:26:03,690 with the City council on. 5785 03:26:03,690 --> 03:26:07,600 I think I've talked to many of 5786 03:26:07,600 --> 03:26:07,894 your officers about this Almost 5787 03:26:07,894 --> 03:26:08,560 30% of our bills are made up of 5788 03:26:08,560 --> 03:26:11,560 state mandates and we would 5789 03:26:13,299 --> 03:26:13,800 love to work with the city 5790 03:26:13,800 --> 03:26:14,534 the city council. 5791 03:26:14,534 --> 03:26:14,867 We're happy to come in to talk 5792 03:26:14,867 --> 03:26:15,468 to you. 5793 03:26:15,468 --> 03:26:18,468 Let's work at this at 5794 03:26:19,138 --> 03:26:19,839 Sacramento and take these cost 5795 03:26:19,839 --> 03:26:20,540 ineffective things out of our 5796 03:26:20,540 --> 03:26:22,940 bills would immediately reduce 5797 03:26:25,711 --> 03:26:26,120 bills JANUARY first. 5798 03:26:26,120 --> 03:26:26,412 Okay. 5799 03:26:26,412 --> 03:26:26,713 Thank you. 5800 03:26:26,713 --> 03:26:28,713 Okay. 5801 03:26:30,850 --> 03:26:31,417 From public power San Diego 5802 03:26:31,417 --> 03:26:32,184 the issue of the cost. 5803 03:26:32,184 --> 03:26:35,184 But when I looked at 5804 03:26:37,490 --> 03:26:39,890 the spreadsheet realizing that 5805 03:26:42,280 --> 03:26:42,695 4% was the 4%, was it assumed 5806 03:26:42,695 --> 03:26:43,620 increase in electrical rates 5807 03:26:43,620 --> 03:26:43,363 annually? 5808 03:26:43,363 --> 03:26:45,363 Right. 5809 03:26:47,367 --> 03:26:47,901 I think far higher than that in 5810 03:26:47,901 --> 03:26:48,201 the last ten years. 5811 03:26:48,201 --> 03:26:48,902 Right. 5812 03:26:48,902 --> 03:26:49,602 Almost a doubling in 13 years. 5813 03:26:49,602 --> 03:26:52,200 14 years, something like that. 5814 03:26:52,672 --> 03:26:53,306 Correct? 5815 03:26:53,306 --> 03:26:53,606 Generally speaking, yes. 5816 03:26:53,606 --> 03:26:54,273 Okay. 5817 03:26:54,273 --> 03:26:57,873 So the cost of the system 5818 03:26:58,845 --> 03:26:59,479 relative to the cost to 5819 03:26:59,479 --> 03:27:01,879 the ratepayers that we're 5820 03:27:03,316 --> 03:27:04,170 seeing someone from San Diego, 5821 03:27:04,170 --> 03:27:04,484 what would you address that 5822 03:27:04,484 --> 03:27:05,151 issue related to 5823 03:27:05,151 --> 03:27:07,551 the disassociation cost that 5824 03:27:08,722 --> 03:27:09,322 we're going to have to pay to 5825 03:27:09,322 --> 03:27:11,322 the other municipalities 5826 03:27:12,826 --> 03:27:13,560 Because I know that one model 5827 03:27:13,560 --> 03:27:14,600 of this is to not take over 5828 03:27:14,600 --> 03:27:14,728 the transmission. 5829 03:27:14,728 --> 03:27:17,728 It's only to take over 5830 03:27:17,797 --> 03:27:18,565 the distribution. 5831 03:27:18,565 --> 03:27:21,565 What's your response to what 5832 03:27:24,137 --> 03:27:24,838 MRS. Just said about that fee 5833 03:27:24,838 --> 03:27:25,671 We'd have to pay other cities. 5834 03:27:25,671 --> 03:27:29,542 Well there is no fee yet that 5835 03:27:29,542 --> 03:27:30,410 we might pay. 5836 03:27:30,410 --> 03:27:31,770 I think I would side with I 5837 03:27:31,770 --> 03:27:33,477 think Heather's comment that 5838 03:27:34,881 --> 03:27:35,281 all of this would be a 5839 03:27:35,281 --> 03:27:35,915 negotiation. 5840 03:27:35,915 --> 03:27:36,349 We don't know where that's 5841 03:27:36,349 --> 03:27:38,349 going to land. 5842 03:27:39,719 --> 03:27:40,487 We talked about how much fire 5843 03:27:40,487 --> 03:27:44,357 exposure we have as a city That 5844 03:27:44,357 --> 03:27:45,910 would be it's partly in 5845 03:27:45,910 --> 03:27:48,691 the model already but this idea 5846 03:27:50,430 --> 03:27:51,298 that there are billions pending 5847 03:27:51,298 --> 03:27:55,498 that we would have to pay is 5848 03:27:55,735 --> 03:27:56,369 based on nothing at this point 5849 03:27:56,369 --> 03:27:56,803 That would be something we 5850 03:27:56,803 --> 03:27:58,803 would discuss. 5851 03:28:01,274 --> 03:28:01,808 But keep in mind the electrical 5852 03:28:01,808 --> 03:28:02,442 workers would stay. 5853 03:28:02,442 --> 03:28:02,843 They would be maintaining 5854 03:28:02,843 --> 03:28:03,543 the system. 5855 03:28:03,543 --> 03:28:06,279 I just wanted you to focus on 5856 03:28:06,279 --> 03:28:06,680 that part portion that she 5857 03:28:06,680 --> 03:28:07,247 brought up. 5858 03:28:07,247 --> 03:28:07,881 I know there's lots of 5859 03:28:07,881 --> 03:28:08,581 components that have been 5860 03:28:08,581 --> 03:28:11,351 brought up to date but you're 5861 03:28:11,351 --> 03:28:12,119 telling me we just don't know 5862 03:28:12,119 --> 03:28:12,786 what that true cost to 5863 03:28:12,786 --> 03:28:13,453 the associate would be here? 5864 03:28:13,453 --> 03:28:14,154 Would there be no cost if we 5865 03:28:14,154 --> 03:28:16,554 just did distribution instead 5866 03:28:17,324 --> 03:28:17,991 of taking over transmission 5867 03:28:17,991 --> 03:28:18,425 lines or the beauty of doing 5868 03:28:18,425 --> 03:28:20,425 distribution? 5869 03:28:22,963 --> 03:28:23,664 Not only is we would have no 5870 03:28:23,664 --> 03:28:24,631 lack of exposure so we have 5871 03:28:24,631 --> 03:28:27,934 years of delay to to look at 5872 03:28:27,934 --> 03:28:28,635 this but it's important to know 5873 03:28:28,635 --> 03:28:31,350 that those electrical workers 5874 03:28:32,606 --> 03:28:33,273 would be maintaining and 5875 03:28:33,273 --> 03:28:33,573 operating the system in San 5876 03:28:33,573 --> 03:28:35,573 Diego. 5877 03:28:38,211 --> 03:28:38,912 Those costs wouldn't be costs 5878 03:28:38,912 --> 03:28:41,912 that other cities would bear. 5879 03:28:42,749 --> 03:28:43,550 We would bear our own cost So 5880 03:28:43,550 --> 03:28:44,251 it's very much to be negotiated 5881 03:28:44,251 --> 03:28:47,251 what additional costs we might 5882 03:28:47,821 --> 03:28:48,121 have to bear as well. 5883 03:28:48,121 --> 03:28:48,522 Okay. 5884 03:28:48,522 --> 03:28:49,256 One second. 5885 03:28:49,256 --> 03:28:49,890 Given that our business manager 5886 03:28:49,890 --> 03:28:52,890 for these workers here in 5887 03:28:53,927 --> 03:28:54,561 the room, MR. Ferryman, can I 5888 03:28:54,561 --> 03:28:55,229 ask you a quick question 5889 03:28:55,229 --> 03:28:55,796 related to that component of 5890 03:28:55,796 --> 03:28:57,796 this potential model? 5891 03:28:59,500 --> 03:29:00,100 What impact on workers could 5892 03:29:00,100 --> 03:29:00,734 you guys work on all 5893 03:29:00,734 --> 03:29:03,134 the electrical lines We're 5894 03:29:03,637 --> 03:29:03,937 going to get some I'm here with 5895 03:29:03,937 --> 03:29:04,238 Nate. 5896 03:29:04,238 --> 03:29:06,238 Okay. 5897 03:29:08,108 --> 03:29:08,709 Thank you for being here. 5898 03:29:08,709 --> 03:29:10,709 The transmission versus 5899 03:29:12,846 --> 03:29:13,547 distribution concept here 5900 03:29:13,547 --> 03:29:14,215 the transmission lines cross 5901 03:29:14,215 --> 03:29:16,615 municipal boundaries that I 5902 03:29:18,180 --> 03:29:18,886 understand could open us up to 5903 03:29:18,886 --> 03:29:19,520 a price We have to pay other 5904 03:29:19,520 --> 03:29:19,953 municipalities but just a 5905 03:29:19,953 --> 03:29:21,953 distribution. 5906 03:29:22,389 --> 03:29:23,900 How many workers of that would 5907 03:29:23,900 --> 03:29:26,900 it impact that you represent? 5908 03:29:27,962 --> 03:29:28,729 I would say anywhere from 100 5909 03:29:28,729 --> 03:29:29,329 to 200 directly but then you're 5910 03:29:29,329 --> 03:29:31,729 reducing the size of 5911 03:29:34,535 --> 03:29:35,235 the primary group at as many as 5912 03:29:35,235 --> 03:29:37,635 your lowering their bargaining 5913 03:29:37,938 --> 03:29:38,539 strength indirectly about 1800 5914 03:29:38,539 --> 03:29:39,390 directly about 1 to 200. 5915 03:29:39,390 --> 03:29:41,390 Okay, understood. 5916 03:29:43,344 --> 03:29:46,944 So MRS. If we did a 5917 03:29:47,715 --> 03:29:48,482 distribution model as opposed 5918 03:29:48,482 --> 03:29:49,830 to taking over any transmission 5919 03:29:49,830 --> 03:29:52,830 lines, would we still be 5920 03:29:53,587 --> 03:29:57,187 exposed to those cut off fees 5921 03:29:58,225 --> 03:29:58,626 or or exit fees please? 5922 03:29:58,626 --> 03:29:59,326 Absolutely. 5923 03:29:59,326 --> 03:30:00,127 If you're taking out a portion 5924 03:30:00,127 --> 03:30:03,464 of our system and a portion of 5925 03:30:03,464 --> 03:30:04,198 our customers, those costs that 5926 03:30:04,198 --> 03:30:05,320 are fixed costs are still going 5927 03:30:05,320 --> 03:30:08,502 to need to be spread across 5928 03:30:08,502 --> 03:30:09,203 the remaining customers And now 5929 03:30:09,203 --> 03:30:13,174 you no longer have the city of 5930 03:30:13,174 --> 03:30:13,874 San Diego as part of that as 5931 03:30:13,874 --> 03:30:14,441 part of those customers paying 5932 03:30:14,441 --> 03:30:15,142 for those other costs. 5933 03:30:15,142 --> 03:30:18,142 So absolutely if you separate 5934 03:30:18,279 --> 03:30:18,946 the distribution cost out, 5935 03:30:18,946 --> 03:30:19,613 the remaining customers will 5936 03:30:19,613 --> 03:30:22,613 still see an increased cost. 5937 03:30:23,551 --> 03:30:24,251 Okay. 5938 03:30:24,251 --> 03:30:24,752 Transmission is where sd Genie 5939 03:30:24,752 --> 03:30:26,752 makes its profit. 5940 03:30:28,489 --> 03:30:29,230 Correct? 5941 03:30:29,230 --> 03:30:31,230 I don't understand. 5942 03:30:33,270 --> 03:30:33,794 So generation of the energy you 5943 03:30:33,794 --> 03:30:34,528 have to sell it at the value it 5944 03:30:34,528 --> 03:30:35,229 costs you to do it So there's 5945 03:30:35,229 --> 03:30:37,898 no profit on the actual 5946 03:30:37,898 --> 03:30:38,566 creation of it. 5947 03:30:38,566 --> 03:30:39,200 The profit margin comes from 5948 03:30:39,200 --> 03:30:41,600 the transmission cost from 5949 03:30:42,103 --> 03:30:42,703 where it's generated out to 5950 03:30:42,703 --> 03:30:43,371 the customers, correct? 5951 03:30:43,371 --> 03:30:46,371 Well, the profit comes from 5952 03:30:47,174 --> 03:30:47,675 both the distribute and 5953 03:30:47,675 --> 03:30:47,975 the transmission. 5954 03:30:47,975 --> 03:30:48,709 Okay. 5955 03:30:48,709 --> 03:30:51,709 So it's from our infrastructure 5956 03:30:52,280 --> 03:30:52,947 that we build everything from 5957 03:30:52,947 --> 03:30:53,648 that batteries, transmission 5958 03:30:53,648 --> 03:30:56,480 lines, distribution lines It's 5959 03:30:57,385 --> 03:30:57,718 the entire infrastructure 5960 03:30:57,718 --> 03:30:58,190 system. 5961 03:30:58,190 --> 03:30:58,753 Okay. 5962 03:30:58,753 --> 03:30:59,420 I guess a question as it 5963 03:30:59,420 --> 03:31:02,420 relates to the economics of 5964 03:31:06,727 --> 03:31:07,428 this is the transmission 5965 03:31:07,428 --> 03:31:08,129 crosses multiple cities, maybe 5966 03:31:08,129 --> 03:31:08,529 even multiple counties, right? 5967 03:31:08,529 --> 03:31:08,830 Absolutely. 5968 03:31:08,830 --> 03:31:10,830 Okay. 5969 03:31:12,166 --> 03:31:12,867 So there's a profit that's 5970 03:31:12,867 --> 03:31:13,501 built into that component that 5971 03:31:13,501 --> 03:31:16,501 goes to the entire system. 5972 03:31:17,705 --> 03:31:18,406 But after it gets to a 5973 03:31:18,406 --> 03:31:19,240 distribution hub say in Sierra 5974 03:31:19,240 --> 03:31:21,175 mesa in my district and down to 5975 03:31:21,175 --> 03:31:21,809 the homes, then there's a 5976 03:31:21,809 --> 03:31:23,809 different profit component 5977 03:31:25,446 --> 03:31:25,813 that's part of that correct? 5978 03:31:25,813 --> 03:31:26,114 Yes. 5979 03:31:26,114 --> 03:31:26,814 Okay. 5980 03:31:26,814 --> 03:31:27,115 It's the same concept though. 5981 03:31:27,115 --> 03:31:29,115 Okay. 5982 03:31:30,585 --> 03:31:31,285 When the infrastructure is 5983 03:31:31,285 --> 03:31:31,986 built we are making the profit 5984 03:31:31,986 --> 03:31:34,386 on building the infrastructure 5985 03:31:34,989 --> 03:31:35,423 whether it's transmission or 5986 03:31:35,423 --> 03:31:35,723 distribution. 5987 03:31:35,723 --> 03:31:36,457 Okay. 5988 03:31:36,457 --> 03:31:40,570 I guess I'm wondering is why 5989 03:31:40,495 --> 03:31:41,162 would why would we have to pay 5990 03:31:41,162 --> 03:31:41,862 an exit fee after the energy 5991 03:31:41,862 --> 03:31:44,862 already crosses into the city 5992 03:31:45,366 --> 03:31:46,200 of San Diego to a distribution 5993 03:31:46,200 --> 03:31:49,800 center And and then so we'd 5994 03:31:50,338 --> 03:31:54,538 have to pay to la Masons and 5995 03:31:54,876 --> 03:31:55,576 people from Poway and other 5996 03:31:55,576 --> 03:31:56,277 cities when it's crossed over 5997 03:31:56,277 --> 03:31:59,848 the line it's now in the city 5998 03:31:59,848 --> 03:32:00,515 And then the utility 5999 03:32:00,515 --> 03:32:01,215 the nonprofit utility would 6000 03:32:01,215 --> 03:32:04,215 ostensibly take control of it 6001 03:32:04,452 --> 03:32:05,286 at that point. 6002 03:32:05,286 --> 03:32:05,987 So Genie would still be making 6003 03:32:05,987 --> 03:32:08,987 a profit from the transmission 6004 03:32:09,324 --> 03:32:10,580 And at that point it's not 6005 03:32:10,580 --> 03:32:13,580 really affecting the Masons and 6006 03:32:14,429 --> 03:32:14,729 folks from power would it? 6007 03:32:14,729 --> 03:32:15,396 Right. 6008 03:32:15,396 --> 03:32:15,830 But there's fixed costs what 6009 03:32:15,830 --> 03:32:16,130 you just said. 6010 03:32:16,130 --> 03:32:18,130 Right. 6011 03:32:18,266 --> 03:32:18,866 Well I'm sorry. 6012 03:32:18,866 --> 03:32:19,334 Don't catch me. 6013 03:32:19,334 --> 03:32:21,334 I'll explain it. 6014 03:32:23,271 --> 03:32:23,771 There are fixed costs across 6015 03:32:23,771 --> 03:32:24,339 the entire system. 6016 03:32:24,339 --> 03:32:24,973 Don't build our system 6017 03:32:24,973 --> 03:32:26,973 including the distribution 6018 03:32:28,760 --> 03:32:28,643 system. 6019 03:32:28,643 --> 03:32:28,943 City boundaries only. 6020 03:32:28,943 --> 03:32:29,678 Okay? 6021 03:32:29,678 --> 03:32:30,145 You don't say We're building it 6022 03:32:30,145 --> 03:32:32,545 out for La mesa. 6023 03:32:33,315 --> 03:32:33,682 Done Now to do another foot in 6024 03:32:33,682 --> 03:32:35,682 San Diego. 6025 03:32:37,218 --> 03:32:37,886 So the distribution system also 6026 03:32:37,886 --> 03:32:38,553 crosses the borders So just 6027 03:32:38,553 --> 03:32:41,553 cutting it off there's still 6028 03:32:42,557 --> 03:32:43,325 fixed costs that go both ways 6029 03:32:43,325 --> 03:32:46,628 And so to serve the system as a 6030 03:32:46,628 --> 03:32:47,430 whole So you're taking our 6031 03:32:47,430 --> 03:32:48,163 customers out of the city of 6032 03:32:48,163 --> 03:32:52,670 San Diego out of the system and 6033 03:32:52,670 --> 03:32:52,667 there are still fixed costs 6034 03:32:52,667 --> 03:32:53,201 that will be part of 6035 03:32:53,201 --> 03:32:53,902 the distribution and 6036 03:32:53,902 --> 03:32:56,302 transmission system that would 6037 03:32:56,371 --> 03:32:57,500 then be shouldered by 6038 03:32:57,500 --> 03:32:57,639 the remaining customers no 6039 03:32:57,639 --> 03:33:00,390 longer the customers from 6040 03:33:01,576 --> 03:33:02,244 the city of San Diego. 6041 03:33:02,244 --> 03:33:02,944 But if a transmission line 6042 03:33:02,944 --> 03:33:05,944 crosses from some other county 6043 03:33:06,181 --> 03:33:06,848 or part of the part of 6044 03:33:06,848 --> 03:33:07,449 the county into our city and 6045 03:33:07,449 --> 03:33:09,449 we've disassociated from 6046 03:33:11,353 --> 03:33:12,540 the ecosystem as you're 6047 03:33:12,540 --> 03:33:15,540 pointing out, it doesn't seem 6048 03:33:16,191 --> 03:33:16,925 to me that la Masons would pay 6049 03:33:16,925 --> 03:33:17,626 for any component of it getting 6050 03:33:17,626 --> 03:33:20,626 to the distribution center and 6051 03:33:20,996 --> 03:33:21,663 on and we'd be buying 6052 03:33:21,663 --> 03:33:22,163 the distribution center from 6053 03:33:22,163 --> 03:33:24,563 you at that point. 6054 03:33:26,334 --> 03:33:30,205 So are we paying for la Masons 6055 03:33:30,205 --> 03:33:30,939 and people in power is I see 6056 03:33:30,939 --> 03:33:31,640 this one here You're nodding 6057 03:33:31,640 --> 03:33:32,340 your head clear this up for me 6058 03:33:32,340 --> 03:33:35,344 because it seems to me that 6059 03:33:35,344 --> 03:33:36,780 once it crosses into our city 6060 03:33:36,780 --> 03:33:39,181 gets to a place that the public 6061 03:33:39,181 --> 03:33:39,481 utility would have purchased it 6062 03:33:39,481 --> 03:33:40,148 . 6063 03:33:40,148 --> 03:33:40,949 I understand the fixed cost 6064 03:33:40,949 --> 03:33:44,549 component but if we bought it 6065 03:33:44,620 --> 03:33:45,353 from MR. Genie and it's being 6066 03:33:45,353 --> 03:33:48,353 owned publicly, why would there 6067 03:33:49,900 --> 03:33:49,958 be a further fixed cost to it? 6068 03:33:49,958 --> 03:33:50,559 Okay, so let me come at this 6069 03:33:50,559 --> 03:33:51,326 slightly differently in 6070 03:33:51,326 --> 03:33:53,896 the math so that it might be a 6071 03:33:53,896 --> 03:33:54,562 little clearer. 6072 03:33:54,562 --> 03:33:55,197 So the first thing to 6073 03:33:55,197 --> 03:33:55,864 understand is when we talk 6074 03:33:55,864 --> 03:33:58,264 about distribution assets in 6075 03:33:58,967 --> 03:33:59,668 the report, those include 6076 03:33:59,668 --> 03:34:00,302 specifically the vast majority 6077 03:34:00,302 --> 03:34:01,360 of the distribution sorry 6078 03:34:01,360 --> 03:34:03,839 the transmission assets that we 6079 03:34:03,839 --> 03:34:04,506 speak about are the substations 6080 03:34:04,506 --> 03:34:04,806 and that's the point of step 6081 03:34:04,806 --> 03:34:06,806 down. 6082 03:34:08,450 --> 03:34:08,644 Those are often and you want 6083 03:34:08,644 --> 03:34:09,245 those The reason they're 6084 03:34:09,245 --> 03:34:12,245 included in the study is 6085 03:34:13,182 --> 03:34:13,749 because you want them both for 6086 03:34:13,749 --> 03:34:14,416 the ability to manage 6087 03:34:14,416 --> 03:34:18,160 the system and then plan for 6088 03:34:18,453 --> 03:34:19,880 future growth so that 6089 03:34:19,880 --> 03:34:19,721 the oversimplified solute 6090 03:34:19,721 --> 03:34:23,258 example I can give here is 6091 03:34:23,258 --> 03:34:23,992 buying just the distribution 6092 03:34:23,992 --> 03:34:24,659 system is like buying the pipes 6093 03:34:24,659 --> 03:34:27,930 but not the pump station for 6094 03:34:27,930 --> 03:34:28,697 water. 6095 03:34:28,697 --> 03:34:29,298 So that's kind of the I just 6096 03:34:29,298 --> 03:34:29,965 want to address kind of 6097 03:34:29,965 --> 03:34:32,701 the there's a reason that we 6098 03:34:32,701 --> 03:34:33,302 didn't do a distribution only 6099 03:34:33,302 --> 03:34:33,902 kind of presentation in 6100 03:34:33,902 --> 03:34:36,902 the report from the just 6101 03:34:37,439 --> 03:34:37,706 compensation standpoint. 6102 03:34:37,706 --> 03:34:38,473 Yes. 6103 03:34:38,473 --> 03:34:42,730 So we know from the information 6104 03:34:46,810 --> 03:34:46,782 that's in the report that about 6105 03:34:46,782 --> 03:34:49,182 10% give or take of 6106 03:34:50,185 --> 03:34:50,986 the physical assets of any 6107 03:34:50,986 --> 03:34:51,553 within the city of San Diego 6108 03:34:51,553 --> 03:34:52,254 are fully depreciated. 6109 03:34:52,254 --> 03:34:55,854 One of the reasons those cost 6110 03:34:55,925 --> 03:34:56,525 boundary is are so large 6111 03:34:56,525 --> 03:34:59,525 compared to phase one is 6112 03:34:59,929 --> 03:35:00,629 because there's a significantly 6113 03:35:00,629 --> 03:35:01,497 larger component of the assets 6114 03:35:01,497 --> 03:35:05,367 that are old And a lot of that 6115 03:35:05,367 --> 03:35:08,967 is because the vast majority of 6116 03:35:10,372 --> 03:35:11,240 ratepayer funds in the last 5 6117 03:35:11,240 --> 03:35:14,840 to 10 years of all of city 6118 03:35:14,843 --> 03:35:15,478 genius territory have been 6119 03:35:15,478 --> 03:35:17,478 toward wildfire mitigation 6120 03:35:19,115 --> 03:35:19,415 that's been approved at the cpc 6121 03:35:19,415 --> 03:35:20,150 . 6122 03:35:20,150 --> 03:35:20,583 And to Councilmember Von 6123 03:35:20,583 --> 03:35:22,983 Wilpert point, we have 6124 03:35:25,221 --> 03:35:25,988 benefited from that as a city 6125 03:35:25,988 --> 03:35:26,922 but we're also paying for it. 6126 03:35:26,922 --> 03:35:29,859 >> We are ten and in every 6127 03:35:29,859 --> 03:35:30,126 other municipalities paying for 6128 03:35:30,126 --> 03:35:30,859 it. 6129 03:35:30,859 --> 03:35:35,590 So ten years ago the city of 6130 03:35:35,297 --> 03:35:35,931 San Diego ratepayers made up 6131 03:35:35,931 --> 03:35:37,931 approximately 40% of city 6132 03:35:39,235 --> 03:35:40,200 genies Total revenue Since 6133 03:35:40,200 --> 03:35:40,536 we've now seen growth in houses 6134 03:35:40,536 --> 03:35:41,203 and industry etc. In 6135 03:35:41,203 --> 03:35:43,839 the greater San Diego region 6136 03:35:43,839 --> 03:35:44,273 we're now down to about 35% of 6137 03:35:44,273 --> 03:35:46,273 their revenue. 6138 03:35:48,945 --> 03:35:49,645 So the issue of just 6139 03:35:49,645 --> 03:35:52,450 compensation in a hypothetical 6140 03:35:54,820 --> 03:35:57,682 simply says okay you are going 6141 03:35:58,154 --> 03:36:00,554 to remove 35% of revenue, 6142 03:36:02,225 --> 03:36:02,792 660,000 customers from 6143 03:36:02,792 --> 03:36:04,792 the overall territory. 6144 03:36:07,596 --> 03:36:08,297 >> If you do that that means 6145 03:36:08,297 --> 03:36:11,434 that and again we don't put 6146 03:36:11,434 --> 03:36:12,201 this number in the feasibility 6147 03:36:12,201 --> 03:36:13,169 study because you can kind of 6148 03:36:13,169 --> 03:36:16,472 pick any number to put in that 6149 03:36:16,472 --> 03:36:17,273 whatever investments sdg any 6150 03:36:17,273 --> 03:36:20,273 continues to make from that 6151 03:36:21,611 --> 03:36:22,378 division from the point of that 6152 03:36:22,378 --> 03:36:25,978 division are only going to be 6153 03:36:27,116 --> 03:36:27,750 applied to the rest of excuse 6154 03:36:27,750 --> 03:36:28,451 me the rest of the system. 6155 03:36:28,451 --> 03:36:31,253 So right now yes, depending on 6156 03:36:31,253 --> 03:36:31,921 which year we're talking about 6157 03:36:31,921 --> 03:36:32,588 City of San Diego ratepayers 6158 03:36:32,588 --> 03:36:35,358 most of the urban ratepayers 6159 03:36:35,358 --> 03:36:35,958 frankly not just within 6160 03:36:35,958 --> 03:36:36,592 the city are subsidizing 6161 03:36:36,592 --> 03:36:38,992 investment in the physical 6162 03:36:41,464 --> 03:36:42,980 system outside the city If 6163 03:36:42,980 --> 03:36:44,980 those physical investments 6164 03:36:46,402 --> 03:36:50,602 continue to and are seen to be 6165 03:36:50,840 --> 03:36:51,608 beneficial to the whole area 6166 03:36:51,608 --> 03:36:52,374 including a new city I mean you 6167 03:36:52,374 --> 03:36:55,374 then there is a just 6168 03:36:55,511 --> 03:36:56,379 compensation problem that all 6169 03:36:56,379 --> 03:36:59,979 of those costs should not be 6170 03:37:00,283 --> 03:37:01,500 borne by the remaining sdg any 6171 03:37:01,500 --> 03:37:04,500 ratepayers If there is still 6172 03:37:05,588 --> 03:37:06,322 benefit out to the new city of 6173 03:37:06,322 --> 03:37:06,890 San Diego ratepayers And that's 6174 03:37:06,890 --> 03:37:08,890 the just compensation 6175 03:37:10,927 --> 03:37:11,628 conversation one and part of 6176 03:37:11,628 --> 03:37:14,628 the ongoing kind of proceeding 6177 03:37:15,865 --> 03:37:16,499 with San Francisco and ppg and 6178 03:37:16,499 --> 03:37:17,167 they have a very different 6179 03:37:17,167 --> 03:37:19,567 calculation both because of 6180 03:37:19,702 --> 03:37:20,370 Janie's lack of investment into 6181 03:37:20,370 --> 03:37:21,400 wildfire and the size of San 6182 03:37:21,400 --> 03:37:24,400 Francisco as it relates to 6183 03:37:24,307 --> 03:37:25,740 the larger any system but 6184 03:37:25,740 --> 03:37:29,274 the exit fee fees is kind of 6185 03:37:30,346 --> 03:37:30,680 like the cia when the ccr was 6186 03:37:30,680 --> 03:37:31,448 set up. 6187 03:37:31,448 --> 03:37:34,170 There are contracts and fixed 6188 03:37:34,170 --> 03:37:37,617 costs that Guinea pays or has 6189 03:37:38,421 --> 03:37:39,122 historically paid that the city 6190 03:37:39,122 --> 03:37:39,556 of San Diego ratepayers still 6191 03:37:39,556 --> 03:37:41,556 need to cover. 6192 03:37:43,760 --> 03:37:44,361 If you look back and say Well 6193 03:37:44,361 --> 03:37:44,995 we've done a whole bunch 6194 03:37:44,995 --> 03:37:47,964 outside the city you could 6195 03:37:47,964 --> 03:37:48,731 argue just compensation one way 6196 03:37:48,731 --> 03:37:49,432 If you say hey all this load 6197 03:37:49,432 --> 03:37:50,300 growth means that we're going 6198 03:37:50,300 --> 03:37:53,136 to have to do a whole bunch of 6199 03:37:53,136 --> 03:37:53,770 investment outside the city 6200 03:37:53,770 --> 03:37:54,504 boundaries but it benefits 6201 03:37:54,504 --> 03:37:57,504 the city than just compensation 6202 03:37:58,800 --> 03:37:58,708 is going to look another way 6203 03:37:58,708 --> 03:37:59,376 what that range looks like and 6204 03:37:59,376 --> 03:38:02,376 how the puc even determines 6205 03:38:03,179 --> 03:38:03,914 the correct way to calculate 6206 03:38:03,914 --> 03:38:07,514 that is a vastly open question. 6207 03:38:07,985 --> 03:38:08,685 Okay, So let me just go back to 6208 03:38:08,685 --> 03:38:11,685 one last material component of 6209 03:38:12,556 --> 03:38:13,390 this problem. 6210 03:38:13,390 --> 03:38:17,930 My understanding is if we did a 6211 03:38:17,930 --> 03:38:17,828 distribution only model that 6212 03:38:17,828 --> 03:38:21,428 would be the utility, the local 6213 03:38:21,565 --> 03:38:22,365 public utility that we'd pay a 6214 03:38:22,365 --> 03:38:26,565 portion of the bill too but we 6215 03:38:27,690 --> 03:38:27,771 wouldn't stop paying as genie 6216 03:38:27,771 --> 03:38:28,271 for the transmission component 6217 03:38:28,271 --> 03:38:30,271 would we Correct. 6218 03:38:31,842 --> 03:38:32,642 It would be like some type of 6219 03:38:32,642 --> 03:38:33,243 you would still have to use 6220 03:38:33,243 --> 03:38:33,643 the transmission system. 6221 03:38:33,643 --> 03:38:34,210 Yeah, okay. 6222 03:38:34,210 --> 03:38:36,780 We'd still have to use 6223 03:38:36,780 --> 03:38:37,748 the transmission system so we'd 6224 03:38:37,748 --> 03:38:41,348 still be bearing the cost of 6225 03:38:42,190 --> 03:38:42,719 the entire air transmission 6226 03:38:42,719 --> 03:38:45,719 system through that portion of 6227 03:38:45,922 --> 03:38:46,856 a potential hypothetical bill. 6228 03:38:46,856 --> 03:38:50,360 So why would there be an exit 6229 03:38:50,360 --> 03:38:51,610 fee if we'd still be paying 6230 03:38:51,610 --> 03:38:51,628 the transmission bill Because 6231 03:38:51,628 --> 03:38:54,628 of the fixed cost for 6232 03:38:55,332 --> 03:38:56,330 the entire distribution system 6233 03:38:56,330 --> 03:38:56,566 which again doesn't it wasn't 6234 03:38:56,566 --> 03:38:58,966 built city by city. 6235 03:39:01,338 --> 03:39:02,500 So even as you disconnect it, 6236 03:39:02,500 --> 03:39:05,605 our system is built as a 6237 03:39:05,908 --> 03:39:06,643 unified territory wide south 6238 03:39:06,643 --> 03:39:10,243 Orange County to the border and 6239 03:39:10,281 --> 03:39:10,981 there are fixed costs that run 6240 03:39:10,981 --> 03:39:11,748 through that that would still 6241 03:39:11,748 --> 03:39:15,319 need to be that are still being 6242 03:39:15,319 --> 03:39:16,286 paid by our customers. 6243 03:39:16,286 --> 03:39:17,200 And so if the city was to walk 6244 03:39:17,200 --> 03:39:19,623 away, those customers are still 6245 03:39:19,623 --> 03:39:20,390 paying those fixed costs that 6246 03:39:20,390 --> 03:39:21,910 have already been spent And so 6247 03:39:21,910 --> 03:39:24,691 the city can't just walk away 6248 03:39:25,229 --> 03:39:25,629 from those fixed costs across 6249 03:39:25,629 --> 03:39:26,196 the system. 6250 03:39:26,196 --> 03:39:26,597 They would still be 6251 03:39:26,597 --> 03:39:28,597 responsible. 6252 03:39:29,566 --> 03:39:30,334 That's what the case up in San 6253 03:39:30,334 --> 03:39:31,340 Francisco said is you have to 6254 03:39:31,340 --> 03:39:31,769 make the other customers whole 6255 03:39:31,769 --> 03:39:34,738 And what do you think the fixed 6256 03:39:34,738 --> 03:39:38,338 costs are We think it's in 6257 03:39:38,409 --> 03:39:39,750 the billions surely two $7 6258 03:39:39,750 --> 03:39:39,710 billion That's a huge range 6259 03:39:39,710 --> 03:39:40,310 somewhere between 4 and $7 6260 03:39:40,310 --> 03:39:42,710 billion for being very 6261 03:39:43,514 --> 03:39:44,810 concerned As I say, surely as 6262 03:39:44,810 --> 03:39:44,748 the investors in that 6263 03:39:44,748 --> 03:39:46,748 infrastructure you wouldn't 6264 03:39:48,152 --> 03:39:48,852 know the exact dollar amount 6265 03:39:48,852 --> 03:39:49,153 that it would cost, right? 6266 03:39:49,153 --> 03:39:49,453 Yeah. 6267 03:39:49,453 --> 03:39:51,453 Okay. 6268 03:39:52,823 --> 03:39:53,624 Can you not give me better than 6269 03:39:53,624 --> 03:39:55,624 427 six 6 to $8 billion? 6270 03:39:57,628 --> 03:39:57,928 >> Okay But it's negotiable, 6271 03:39:57,928 --> 03:39:58,529 right? 6272 03:39:58,529 --> 03:40:00,929 >> We don't think so. 6273 03:40:02,866 --> 03:40:03,534 And the cpc did say that it's 6274 03:40:03,534 --> 03:40:06,534 absolutely part of the court 6275 03:40:06,870 --> 03:40:07,504 case as Heather just explained 6276 03:40:07,504 --> 03:40:07,938 ,the court will actually 6277 03:40:07,938 --> 03:40:08,739 determine it. 6278 03:40:08,739 --> 03:40:12,339 So you know, I don't know 6279 03:40:12,409 --> 03:40:12,776 exactly what that's going to 6280 03:40:12,776 --> 03:40:13,577 look like. 6281 03:40:13,577 --> 03:40:16,513 Yes, it could be some type of 6282 03:40:16,513 --> 03:40:17,147 settlement but ultimately 6283 03:40:17,147 --> 03:40:17,848 the court determines what 6284 03:40:17,848 --> 03:40:20,848 the just compensation would be 6285 03:40:21,218 --> 03:40:22,860 to the remaining customers So 6286 03:40:22,860 --> 03:40:22,453 they don't see a 20 to 30% rate 6287 03:40:22,453 --> 03:40:22,753 increase. 6288 03:40:22,753 --> 03:40:24,753 Okay. 6289 03:40:26,190 --> 03:40:26,891 Really quickly, you mentioned 6290 03:40:26,891 --> 03:40:27,557 that you didn't do an analysis 6291 03:40:27,557 --> 03:40:29,957 of distribution only model. 6292 03:40:31,128 --> 03:40:31,529 You said that right just a 6293 03:40:31,529 --> 03:40:32,229 minute ago. 6294 03:40:32,229 --> 03:40:35,229 This study doesn't provide its 6295 03:40:35,733 --> 03:40:36,400 kind of recommendations and 6296 03:40:36,400 --> 03:40:37,670 determination of feasibility 6297 03:40:37,670 --> 03:40:39,467 looking at just distribution 6298 03:40:40,637 --> 03:40:41,372 because it's not recommended 6299 03:40:41,372 --> 03:40:44,972 for the actual long term health 6300 03:40:45,376 --> 03:40:45,876 purpose and a capability of any 6301 03:40:45,876 --> 03:40:46,577 municipal utility. 6302 03:40:46,577 --> 03:40:50,147 But the other thing but there 6303 03:40:50,147 --> 03:40:50,881 is that distinction that's got 6304 03:40:50,881 --> 03:40:51,449 made of you're not talking high 6305 03:40:51,449 --> 03:40:51,882 voltage crossing line 6306 03:40:51,882 --> 03:40:53,882 transmissions. 6307 03:40:55,520 --> 03:40:55,686 We have transmission line is 6308 03:40:55,686 --> 03:40:56,420 just how big the line is. 6309 03:40:56,420 --> 03:40:57,121 There's a break point of what's 6310 03:40:57,121 --> 03:40:59,521 considered a distribution line 6311 03:41:00,570 --> 03:41:00,791 versus a transmission line. 6312 03:41:00,791 --> 03:41:01,492 We have transmission lines that 6313 03:41:01,492 --> 03:41:03,892 run between substations, both 6314 03:41:03,961 --> 03:41:04,829 of which are within the city. 6315 03:41:04,829 --> 03:41:05,529 You effectively want to own all 6316 03:41:05,529 --> 03:41:09,129 of the assets within the city 6317 03:41:09,367 --> 03:41:09,967 boundary in order to run 6318 03:41:09,967 --> 03:41:10,701 the system efficiently. 6319 03:41:10,701 --> 03:41:14,301 Sometimes you got to move power 6320 03:41:14,438 --> 03:41:15,239 really far and sometimes you 6321 03:41:15,239 --> 03:41:15,939 you know you can just run it 6322 03:41:15,939 --> 03:41:16,574 along the distribution lines. 6323 03:41:16,574 --> 03:41:18,974 That's an excellent point. 6324 03:41:19,577 --> 03:41:20,277 Power San Diego That's a 6325 03:41:20,277 --> 03:41:20,912 component that wasn't brought 6326 03:41:20,912 --> 03:41:21,612 up that I've heard before 6327 03:41:21,612 --> 03:41:24,882 The fact that within the city 6328 03:41:24,882 --> 03:41:25,550 you have the transmission lines 6329 03:41:25,550 --> 03:41:26,150 and if you're looking at if 6330 03:41:26,150 --> 03:41:28,550 you're suggesting just a 6331 03:41:29,353 --> 03:41:30,540 distribution only utility, a 6332 03:41:30,540 --> 03:41:30,655 public utility, how do you get 6333 03:41:30,655 --> 03:41:32,655 around that internal 6334 03:41:34,325 --> 03:41:35,193 transmission line? 6335 03:41:35,193 --> 03:41:35,793 What do you get around that is 6336 03:41:35,793 --> 03:41:37,793 those transmission and 6337 03:41:39,197 --> 03:41:41,197 distribution substations become 6338 03:41:41,367 --> 03:41:43,367 tollbooths. 6339 03:41:43,934 --> 03:41:44,602 You monitor how much power is 6340 03:41:44,602 --> 03:41:45,203 flowing off the transmission 6341 03:41:45,203 --> 03:41:48,203 system You pay for that. 6342 03:41:48,706 --> 03:41:49,440 We pay it through 6343 03:41:49,440 --> 03:41:50,740 the transmission access charges 6344 03:41:50,740 --> 03:41:53,311 and that is how the system 6345 03:41:53,311 --> 03:41:54,450 works. 6346 03:41:54,450 --> 03:41:55,813 Again, the first study that new 6347 03:41:55,813 --> 03:41:58,813 Gen did with distribution only 6348 03:42:00,510 --> 03:42:03,510 and so it's a choice. 6349 03:42:03,688 --> 03:42:05,688 Okay, understood. 6350 03:42:13,598 --> 03:42:14,980 Thank you, MR. CHAIRMAN, Quick 6351 03:42:14,980 --> 03:42:16,980 question for you. 6352 03:42:17,669 --> 03:42:18,336 I noticed you mentioned 6353 03:42:18,336 --> 03:42:19,137 leverage your workers would 6354 03:42:19,137 --> 03:42:22,640 have in negotiating a deal if a 6355 03:42:22,640 --> 03:42:23,374 significant proportion were 6356 03:42:23,374 --> 03:42:26,374 segregated off from the broader 6357 03:42:27,679 --> 03:42:28,379 body that you represent. 6358 03:42:28,379 --> 03:42:31,379 How would it materially change 6359 03:42:32,584 --> 03:42:33,285 the day to day work to have 6360 03:42:33,285 --> 03:42:35,285 Genie essentially handling 6361 03:42:36,855 --> 03:42:37,488 certain components that run 6362 03:42:37,488 --> 03:42:41,880 into the city of San Diego 6363 03:42:41,326 --> 03:42:41,993 versus a public utility 6364 03:42:41,993 --> 03:42:42,894 controlling inside the city? 6365 03:42:42,894 --> 03:42:46,397 I would say it's going to be a 6366 03:42:46,397 --> 03:42:47,650 substantial impact especially 6367 03:42:47,650 --> 03:42:47,766 when you start talking about 6368 03:42:47,766 --> 03:42:50,166 breaking out the transmission 6369 03:42:51,269 --> 03:42:51,602 and distribution infrastructure 6370 03:42:51,602 --> 03:42:52,370 . 6371 03:42:52,370 --> 03:42:53,710 As a lineman who worked on 6372 03:42:53,710 --> 03:42:53,705 these power lines in the city 6373 03:42:53,705 --> 03:42:56,740 of San Diego for ten years 6374 03:42:56,740 --> 03:42:56,608 before taking this job, a lot 6375 03:42:56,608 --> 03:42:57,342 of our transmission 6376 03:42:57,342 --> 03:42:59,342 infrastructure has distribution 6377 03:43:00,979 --> 03:43:01,479 under build so it's the same 6378 03:43:01,479 --> 03:43:03,479 exact pole, right? 6379 03:43:06,651 --> 03:43:07,452 So if a transmission pole has 6380 03:43:07,452 --> 03:43:09,354 16 kbps on top 12 gave you 6381 03:43:09,354 --> 03:43:09,988 under build and then 120 to 40 6382 03:43:09,988 --> 03:43:10,689 on the bottom and a drunk 6383 03:43:10,689 --> 03:43:13,558 driver runs into that pole and 6384 03:43:13,558 --> 03:43:14,326 everything's on the ground. 6385 03:43:14,326 --> 03:43:14,993 We struggle today having to put 6386 03:43:14,993 --> 03:43:16,993 up telecommunications lines, 6387 03:43:18,830 --> 03:43:19,497 having to rely on spectrum 6388 03:43:19,497 --> 03:43:22,497 at&t, Cox Communications to 6389 03:43:23,268 --> 03:43:23,902 come out and then we are 6390 03:43:23,902 --> 03:43:24,536 putting stuff up here Now 6391 03:43:24,536 --> 03:43:25,237 you're just adding another 6392 03:43:25,237 --> 03:43:27,939 layer of bureaucracy on who's 6393 03:43:27,939 --> 03:43:28,539 going to take the transmission. 6394 03:43:28,539 --> 03:43:29,241 We're going to do 6395 03:43:29,241 --> 03:43:31,443 the transmission, you're going 6396 03:43:31,443 --> 03:43:32,430 to do the distribution And then 6397 03:43:32,430 --> 03:43:32,711 three different telecom 6398 03:43:32,711 --> 03:43:33,378 telecommunications companies 6399 03:43:33,378 --> 03:43:36,648 are going to do these other 6400 03:43:36,648 --> 03:43:37,315 wires As a lineman I'm just 6401 03:43:37,315 --> 03:43:37,949 trying to get everything off 6402 03:43:37,949 --> 03:43:38,416 the ground and up safe and 6403 03:43:38,416 --> 03:43:40,416 power restored. 6404 03:43:41,820 --> 03:43:42,454 So you're going to add to 6405 03:43:42,454 --> 03:43:43,188 competing power companies 6406 03:43:43,188 --> 03:43:43,555 trying to restore service in an 6407 03:43:43,555 --> 03:43:45,555 emergency? 6408 03:43:46,892 --> 03:43:47,292 I think it would make it very 6409 03:43:47,292 --> 03:43:47,592 complicated. 6410 03:43:47,592 --> 03:43:48,600 Okay. 6411 03:43:48,600 --> 03:43:50,600 Appreciate that. 6412 03:43:50,796 --> 03:43:51,430 I'll wrap up my comments. 6413 03:43:51,430 --> 03:43:52,130 Council PRESIDENT I thank 6414 03:43:52,130 --> 03:43:55,633 the members of the public for 6415 03:43:55,633 --> 03:43:56,435 getting into the deep details 6416 03:43:56,435 --> 03:43:57,134 of just why this is so 6417 03:43:57,134 --> 03:44:00,134 complicated and being able to 6418 03:44:00,505 --> 03:44:01,106 stand side by side at 6419 03:44:01,106 --> 03:44:01,807 the microphone to answer 6420 03:44:01,807 --> 03:44:04,807 the questions very directly as 6421 03:44:05,510 --> 03:44:06,144 kind of transparent in fact 6422 03:44:06,144 --> 03:44:06,845 driven comparison I think 6423 03:44:06,845 --> 03:44:09,845 the public expects when we're 6424 03:44:09,982 --> 03:44:10,716 dealing with multibillion 6425 03:44:10,716 --> 03:44:13,716 dollar decisions and being able 6426 03:44:15,254 --> 03:44:15,921 to hear immediately what one 6427 03:44:15,921 --> 03:44:18,321 organization says and being 6428 03:44:19,625 --> 03:44:20,325 able to rebut it or supplement 6429 03:44:20,325 --> 03:44:20,959 it and ultimately hearing from 6430 03:44:20,959 --> 03:44:21,493 the workers about how that 6431 03:44:21,493 --> 03:44:23,493 impacts their lives. 6432 03:44:25,630 --> 03:44:25,864 I know we have another item 6433 03:44:25,864 --> 03:44:29,434 into a one where I'll have some 6434 03:44:29,434 --> 03:44:30,350 further comments but at the end 6435 03:44:30,350 --> 03:44:30,802 of the day I think that 6436 03:44:30,802 --> 03:44:34,402 the well I'll say my comments 6437 03:44:34,973 --> 03:44:35,374 about the 8% profit coming up 6438 03:44:35,374 --> 03:44:36,108 in a second. 6439 03:44:36,108 --> 03:44:39,108 Thank you Council PRESIDENT And 6440 03:44:39,645 --> 03:44:40,345 thank you to members of 6441 03:44:40,345 --> 03:44:41,130 the public for caring so much 6442 03:44:41,130 --> 03:44:41,647 about driving rates down for 6443 03:44:41,647 --> 03:44:42,140 electricity in San Diego. 6444 03:44:42,140 --> 03:44:44,140 All right. 6445 03:44:44,783 --> 03:44:45,650 Thank you. 6446 03:44:45,650 --> 03:44:46,151 And to member Campo, this is an 6447 03:44:46,151 --> 03:44:47,860 information item. 6448 03:44:47,860 --> 03:44:51,490 We have a lot more work to do 6449 03:44:51,490 --> 03:44:52,157 today but nevertheless 6450 03:44:52,157 --> 03:44:52,424 Councilmember Bond, welcome 6451 03:44:52,424 --> 03:44:52,892 one. 6452 03:44:52,892 --> 03:44:53,592 One more point. 6453 03:44:53,592 --> 03:44:54,459 First of all, the way that we 6454 03:44:54,459 --> 03:44:56,829 can lower bills today is by 6455 03:44:56,829 --> 03:44:57,262 making less profit for 6456 03:44:57,262 --> 03:44:59,262 shareholders. 6457 03:45:02,167 --> 03:45:02,801 Today any argument that we need 6458 03:45:02,801 --> 03:45:03,502 to get rid of the public 6459 03:45:03,502 --> 03:45:06,502 purpose programs in the state 6460 03:45:06,738 --> 03:45:07,172 but the mandates in our bills 6461 03:45:07,172 --> 03:45:07,840 is ridiculous. 6462 03:45:07,840 --> 03:45:08,474 You want us to take away 6463 03:45:08,474 --> 03:45:10,874 the low income assistance 6464 03:45:11,743 --> 03:45:12,377 program and state bills. 6465 03:45:12,377 --> 03:45:13,780 You want to take away 6466 03:45:13,780 --> 03:45:13,612 the wildfire safety mandates? 6467 03:45:13,612 --> 03:45:16,120 These are the state 6468 03:45:16,315 --> 03:45:16,648 requirements in the bills that 6469 03:45:16,648 --> 03:45:17,182 we pay. 6470 03:45:17,182 --> 03:45:18,830 That is ridiculous. 6471 03:45:18,830 --> 03:45:21,287 It should be said you need 6472 03:45:21,287 --> 03:45:22,210 shareholder profits that are 6473 03:45:22,210 --> 03:45:22,655 lower today to lower our bills, 6474 03:45:22,655 --> 03:45:23,355 not lowering help for low 6475 03:45:23,355 --> 03:45:25,791 income people And it shouldn't 6476 03:45:25,791 --> 03:45:26,910 be on the backs of cities to do 6477 03:45:26,910 --> 03:45:26,725 that. 6478 03:45:26,725 --> 03:45:29,725 Second, we already pay We 6479 03:45:30,729 --> 03:45:31,530 the city of San Diego already 6480 03:45:31,530 --> 03:45:32,231 pay for infrastructure we don't 6481 03:45:32,231 --> 03:45:32,832 use for city And I'm now 6482 03:45:32,832 --> 03:45:35,232 reading about the Golden 6483 03:45:36,235 --> 03:45:36,835 Pacific Power Line project that 6484 03:45:36,835 --> 03:45:37,403 could go entirely around 6485 03:45:37,403 --> 03:45:39,872 the city of San Diego. 6486 03:45:39,872 --> 03:45:40,539 Yet our ratepayers might have 6487 03:45:40,539 --> 03:45:41,407 to pay for it. 6488 03:45:41,407 --> 03:45:45,210 So I'm glad you're having a lot 6489 03:45:45,210 --> 03:45:46,780 of stakeholder engagement but 6490 03:45:46,780 --> 03:45:46,779 you need to engage the citizens 6491 03:45:46,779 --> 03:45:47,346 of City of San Diego who could 6492 03:45:47,346 --> 03:45:49,746 be paying for this. 6493 03:45:49,982 --> 03:45:50,649 And second of all you should be 6494 03:45:50,649 --> 03:45:51,500 doing more than just virtual 6495 03:45:51,500 --> 03:45:51,717 open houses. 6496 03:45:51,717 --> 03:45:54,787 If you're going to run this 6497 03:45:54,787 --> 03:45:55,387 through an unnatural state park 6498 03:45:55,387 --> 03:45:55,988 like Rego Springs, go to 6499 03:45:55,988 --> 03:45:58,388 Brigham Springs, talk to 6500 03:45:59,910 --> 03:45:59,892 the people in the communities 6501 03:45:59,892 --> 03:46:00,593 in in person about this before 6502 03:46:00,593 --> 03:46:00,960 you go to a natural preserve. 6503 03:46:00,960 --> 03:46:02,960 Thank you. 6504 03:46:03,863 --> 03:46:04,363 Council PRESIDENT. 6505 03:46:04,363 --> 03:46:04,730 All right. 6506 03:46:04,730 --> 03:46:05,664 Thank you. 6507 03:46:05,664 --> 03:46:09,100 So not seeing anybody else on 6508 03:46:09,100 --> 03:46:09,802 the lights. 6509 03:46:09,802 --> 03:46:10,336 This is an information item. 6510 03:46:10,336 --> 03:46:12,336 No motions required. 6511 03:46:13,539 --> 03:46:14,307 Thank you to Brittany, Nate 6512 03:46:14,307 --> 03:46:17,907 Bell and whoever else got in 6513 03:46:18,744 --> 03:46:19,445 the hot seat And we're willing 6514 03:46:19,445 --> 03:46:20,790 to take the questions from 6515 03:46:20,790 --> 03:46:20,413 the council members going 6516 03:46:20,413 --> 03:46:21,470 forward. 6517 03:46:21,470 --> 03:46:21,380 There was a lot of ground 6518 03:46:21,380 --> 03:46:23,380 covered. 6519 03:46:23,883 --> 03:46:24,550 There was a lot of ground not 6520 03:46:24,550 --> 03:46:25,284 covered for this discussion 6521 03:46:25,284 --> 03:46:28,284 because we weren't setting this 6522 03:46:28,354 --> 03:46:29,880 up for an action today because 6523 03:46:29,880 --> 03:46:32,491 there are still so many things. 6524 03:46:32,491 --> 03:46:33,125 But I'll reiterate what 6525 03:46:33,125 --> 03:46:36,725 the report said that it is 6526 03:46:37,597 --> 03:46:38,364 feasibly feasible from an 6527 03:46:38,364 --> 03:46:39,980 economic point of view and it's 6528 03:46:39,980 --> 03:46:39,432 feasible from a technical point 6529 03:46:39,432 --> 03:46:40,132 of view. 6530 03:46:40,132 --> 03:46:42,702 A lot more work would have to 6531 03:46:42,702 --> 03:46:43,403 be done And so you kind of 6532 03:46:43,403 --> 03:46:43,903 tried to summarize Heather and 6533 03:46:43,903 --> 03:46:45,903 I appreciate that. 6534 03:46:46,906 --> 03:46:47,173 So with that we will close item 6535 03:46:47,173 --> 03:46:47,974 200. 6536 03:46:47,974 --> 03:46:50,974 Again, thank you to everyone 6537 03:46:51,644 --> 03:46:54,440 and Deputy Clerk please 6538 03:46:55,548 --> 03:46:56,249 introduce item 201 Thank you 6539 03:46:56,249 --> 03:46:59,249 Council PRESIDENT Item 2a1 sdg 6540 03:46:59,919 --> 03:47:00,653 any franchise independent audit 6541 03:47:00,653 --> 03:47:03,530 report and Franchise Compliance 6542 03:47:04,230 --> 03:47:06,230 Review Committee report 2023 6543 03:47:32,618 --> 03:47:33,419 through 2025 Thank you for All 6544 03:47:33,419 --> 03:47:34,200 right As you start to settle in 6545 03:47:34,200 --> 03:47:36,200 introduce yourselves for 6546 03:47:38,258 --> 03:47:38,758 the record and let us know how 6547 03:47:38,758 --> 03:47:39,158 much time we need. 6548 03:47:39,158 --> 03:47:39,526 >> Hello. 6549 03:47:39,526 --> 03:47:40,193 Thank you. 6550 03:47:40,193 --> 03:47:40,493 Council PRESIDENT My name is 6551 03:47:40,493 --> 03:47:42,493 Matt. 6552 03:47:43,960 --> 03:47:43,797 We are We'll try to keep under 6553 03:47:43,797 --> 03:47:44,397 20 minutes for That's for both 6554 03:47:44,397 --> 03:47:44,697 for the entire reading. 6555 03:47:44,697 --> 03:47:46,466 Okay. 6556 03:47:46,466 --> 03:47:46,933 Thank you. 6557 03:47:46,933 --> 03:47:47,700 >> Thank you. 6558 03:47:47,700 --> 03:47:51,204 My name is Megan Long, program 6559 03:47:51,204 --> 03:47:51,704 manager and department of 6560 03:47:51,704 --> 03:47:52,439 General Services. 6561 03:47:52,439 --> 03:47:56,390 I'm joined today by Eric Cohen, 6562 03:47:56,809 --> 03:47:57,610 Aaron Cohen and Eric Niland 6563 03:47:57,610 --> 03:47:58,311 from Crow Cody Human And to 6564 03:47:58,311 --> 03:47:59,120 tell me about Marshall Zeigler 6565 03:47:59,120 --> 03:48:00,980 from our franchise Compliance 6566 03:48:00,980 --> 03:48:01,681 Review committee today we'll be 6567 03:48:01,681 --> 03:48:02,249 presenting to you the results 6568 03:48:02,249 --> 03:48:05,249 of our second two year 6569 03:48:05,585 --> 03:48:06,286 compliance period of the Genie 6570 03:48:06,286 --> 03:48:06,853 franchise which will include a 6571 03:48:06,853 --> 03:48:07,554 presentation from our 6572 03:48:07,554 --> 03:48:10,900 independent auditor as well as 6573 03:48:10,900 --> 03:48:10,824 our presentation from 6574 03:48:10,824 --> 03:48:11,191 the Franchise Compliance Review 6575 03:48:11,191 --> 03:48:13,191 Committee. 6576 03:48:15,161 --> 03:48:15,829 By way of background in JULY of 6577 03:48:15,829 --> 03:48:16,563 2021 the Council passed two 6578 03:48:16,563 --> 03:48:19,563 ordinances that awarded the gas 6579 03:48:20,600 --> 03:48:21,167 and electric franchises to San 6580 03:48:21,167 --> 03:48:21,868 Diego Gas and Electric 6581 03:48:21,868 --> 03:48:24,170 the franchise with a ten year 6582 03:48:24,170 --> 03:48:24,871 term with an automatic renewal 6583 03:48:24,871 --> 03:48:25,605 for a second ten years unless 6584 03:48:25,605 --> 03:48:26,172 there's action taken by council 6585 03:48:26,172 --> 03:48:28,572 as additional level of 6586 03:48:29,476 --> 03:48:30,110 oversight. 6587 03:48:30,110 --> 03:48:30,743 The franchise required two 6588 03:48:30,743 --> 03:48:31,377 things First, the city is 6589 03:48:31,377 --> 03:48:34,377 required to retain a third 6590 03:48:34,548 --> 03:48:35,349 party independent auditor every 6591 03:48:35,349 --> 03:48:36,116 two years to perform an audit 6592 03:48:36,116 --> 03:48:37,551 of each unit compliance with 6593 03:48:37,551 --> 03:48:38,251 the franchise. 6594 03:48:38,251 --> 03:48:38,951 And second, the franchise 6595 03:48:38,951 --> 03:48:39,686 requires the city to establish 6596 03:48:39,686 --> 03:48:42,860 the Franchise Compliance Review 6597 03:48:42,189 --> 03:48:42,889 Committee also known as the f 6598 03:48:42,889 --> 03:48:43,490 crc, a citizens committee 6599 03:48:43,490 --> 03:48:45,890 comprised of two mayoral 6600 03:48:46,426 --> 03:48:46,859 appointments and three council 6601 03:48:46,859 --> 03:48:47,460 appointments. 6602 03:48:47,460 --> 03:48:48,940 The icrc is charged with 6603 03:48:48,940 --> 03:48:50,940 receiving the independent 6604 03:48:50,897 --> 03:48:51,598 Auditors report and providing 6605 03:48:51,598 --> 03:48:52,265 its own report to Council with 6606 03:48:52,265 --> 03:48:54,265 a recommendation on 6607 03:48:54,568 --> 03:48:55,201 the automatic renewal on 6608 03:48:55,201 --> 03:48:55,902 the second ten year term. 6609 03:48:55,902 --> 03:48:59,106 Both of those reports will be 6610 03:48:59,106 --> 03:48:59,839 presented today in JULY of 2024 6611 03:48:59,839 --> 03:49:00,473 we presented a similar item for 6612 03:49:00,473 --> 03:49:03,473 the first two year review 6613 03:49:04,277 --> 03:49:04,978 period and at the same meeting 6614 03:49:04,978 --> 03:49:07,881 council passed a resolution to 6615 03:49:07,881 --> 03:49:08,548 establish the second frc to 6616 03:49:08,548 --> 03:49:09,216 review the second compliance 6617 03:49:09,216 --> 03:49:11,918 period which covers JULY 8th 6618 03:49:11,918 --> 03:49:12,785 2023 to JULY 7th of 2025. 6619 03:49:12,785 --> 03:49:13,353 I would like to take a moment 6620 03:49:13,353 --> 03:49:15,753 to thank the volunteer 6621 03:49:18,191 --> 03:49:18,892 committee members Matt Brennan, 6622 03:49:18,892 --> 03:49:21,695 Lydia Latimore, Cody Human So 6623 03:49:21,695 --> 03:49:22,129 tell me about Flagler and Corey 6624 03:49:22,129 --> 03:49:22,829 All right. 6625 03:49:22,829 --> 03:49:25,829 For their time and dedication 6626 03:49:26,400 --> 03:49:27,340 to this committee in regards to 6627 03:49:27,340 --> 03:49:27,668 the independent auditor in 6628 03:49:27,668 --> 03:49:30,680 OCTOBER of 2022 city staff 6629 03:49:31,171 --> 03:49:31,838 released an rfp for 6630 03:49:31,838 --> 03:49:32,506 the independent auditor and 6631 03:49:32,506 --> 03:49:33,140 after a competitive process 6632 03:49:33,140 --> 03:49:36,140 Crowell lp was elected as 6633 03:49:36,677 --> 03:49:37,277 the vendor cro will present 6634 03:49:37,277 --> 03:49:38,879 their audit findings for 6635 03:49:38,879 --> 03:49:39,513 the first two three for 6636 03:49:39,513 --> 03:49:40,214 the second two year Crowe 6637 03:49:40,214 --> 03:49:42,614 presented their audit findings 6638 03:49:43,283 --> 03:49:43,951 for the first two year 6639 03:49:43,951 --> 03:49:44,685 franchise period as part of 6640 03:49:44,685 --> 03:49:48,188 the hearing in JULY of 2024 and 6641 03:49:48,188 --> 03:49:48,789 the city chose to exercise its 6642 03:49:48,789 --> 03:49:49,456 option to extend Crowe's 6643 03:49:49,456 --> 03:49:52,456 contract for the second two 6644 03:49:53,260 --> 03:49:53,694 year compliance period. 6645 03:49:53,694 --> 03:49:54,395 I have with me today 6646 03:49:54,395 --> 03:49:55,280 representatives from the Crowe 6647 03:49:55,280 --> 03:49:55,629 team who will go into more 6648 03:49:55,629 --> 03:49:58,290 detail about their audit 6649 03:49:58,232 --> 03:49:58,632 procedures and findings in a 6650 03:49:58,632 --> 03:49:59,500 few minutes. 6651 03:49:59,500 --> 03:50:02,200 But at a high level the audit 6652 03:50:02,200 --> 03:50:02,570 covers the second two year of 6653 03:50:02,570 --> 03:50:03,170 the franchise scuse me 6654 03:50:03,170 --> 03:50:05,839 the second two years of 6655 03:50:05,839 --> 03:50:06,539 the franchise and includes 6656 03:50:06,539 --> 03:50:07,241 the financial, operational and 6657 03:50:07,241 --> 03:50:07,908 cooperative requirements under 6658 03:50:07,908 --> 03:50:10,308 the franchise ordinances and 6659 03:50:10,677 --> 03:50:11,111 their supporting documents 6660 03:50:11,111 --> 03:50:11,712 which include 6661 03:50:11,712 --> 03:50:12,346 the administrative mou, 6662 03:50:12,346 --> 03:50:12,913 the undergrounding mou and 6663 03:50:12,913 --> 03:50:14,913 the Energy Cooperation 6664 03:50:15,949 --> 03:50:16,784 Agreement. 6665 03:50:16,784 --> 03:50:17,484 At this point I will pass it 6666 03:50:17,484 --> 03:50:18,118 over to our independent under 6667 03:50:18,118 --> 03:50:18,819 Crowe who will provide an 6668 03:50:18,819 --> 03:50:21,819 overview of the audit findings 6669 03:50:23,390 --> 03:50:23,958 and recommendations. 6670 03:50:23,958 --> 03:50:24,625 Thank you Megan. 6671 03:50:24,625 --> 03:50:27,625 Next slide we'll go through 6672 03:50:28,329 --> 03:50:28,996 some brief introductions. 6673 03:50:28,996 --> 03:50:29,630 We'll talk about audit scope 6674 03:50:29,630 --> 03:50:32,630 and procedure and then our 6675 03:50:33,000 --> 03:50:33,934 findings and recommendations. 6676 03:50:33,934 --> 03:50:34,268 So next slide My name is Eric 6677 03:50:34,268 --> 03:50:35,200 Niland. 6678 03:50:35,200 --> 03:50:38,602 I'm a director with Crowe and 6679 03:50:38,973 --> 03:50:39,640 with me I have Erin Cohen who's 6680 03:50:39,640 --> 03:50:40,574 a senior manager with Crowe. 6681 03:50:40,574 --> 03:50:42,776 We don't have Burt with us but 6682 03:50:42,776 --> 03:50:45,776 he was the engagement partner 6683 03:50:47,140 --> 03:50:47,982 on this project. 6684 03:50:47,982 --> 03:50:48,549 >> I'll turn to Aaron to talk 6685 03:50:48,549 --> 03:50:50,949 about the scope here. 6686 03:50:52,520 --> 03:50:52,720 Thank you Eric So scope of 6687 03:50:52,720 --> 03:50:53,320 the audit was an independent 6688 03:50:53,320 --> 03:50:56,320 audit of Genie's gas and 6689 03:50:56,557 --> 03:50:57,324 electric franchise agreements 6690 03:50:57,324 --> 03:51:00,461 And as Megan mentioned the two 6691 03:51:00,461 --> 03:51:01,610 year period was JULY 8th, 2023 6692 03:51:01,610 --> 03:51:03,610 through JULY 7th, 2025. 6693 03:51:05,866 --> 03:51:06,566 The audit covered Genie's 6694 03:51:06,566 --> 03:51:07,168 performance and complying with 6695 03:51:07,168 --> 03:51:09,168 the franchise agreements 6696 03:51:10,237 --> 03:51:10,971 Administrative mou, the utility 6697 03:51:10,971 --> 03:51:11,538 underwriting mou and the Energy 6698 03:51:11,538 --> 03:51:13,538 Cooperation agreement 6699 03:51:15,900 --> 03:51:15,343 associated with the franchises 6700 03:51:15,343 --> 03:51:15,976 . 6701 03:51:15,976 --> 03:51:16,677 Now our audit procedures 6702 03:51:16,677 --> 03:51:18,677 included conducting interviews 6703 03:51:20,180 --> 03:51:20,848 with Jenny and city staff. 6704 03:51:20,848 --> 03:51:21,549 We spoke with city staff 6705 03:51:21,549 --> 03:51:23,549 including finance, operational 6706 03:51:25,152 --> 03:51:25,686 and oversight personnel and 6707 03:51:25,686 --> 03:51:26,353 spoke with many city 6708 03:51:26,353 --> 03:51:28,353 departments the Development 6709 03:51:29,457 --> 03:51:30,570 Services Department and an 6710 03:51:30,570 --> 03:51:30,558 engineering and capital 6711 03:51:30,558 --> 03:51:31,291 projects utilities 6712 03:51:31,291 --> 03:51:31,692 undergrounding program and city 6713 03:51:31,692 --> 03:51:33,692 management. 6714 03:51:34,562 --> 03:51:35,296 We reviewed and documented 6715 03:51:35,296 --> 03:51:37,696 requirements of each agreement. 6716 03:51:39,433 --> 03:51:40,101 We submitted multiple data 6717 03:51:40,101 --> 03:51:40,468 requests to City Jenny and 6718 03:51:40,468 --> 03:51:41,690 the city. 6719 03:51:41,690 --> 03:51:41,636 These data requests were 6720 03:51:41,636 --> 03:51:43,636 requested for relevant 6721 03:51:44,338 --> 03:51:45,600 requirements for each of 6722 03:51:45,600 --> 03:51:45,706 the agreements for franchise 6723 03:51:45,706 --> 03:51:48,706 fees We obtained and reviewed 6724 03:51:49,143 --> 03:51:49,710 Genie Annual franchise fee 6725 03:51:49,710 --> 03:51:50,311 calculation documents, 6726 03:51:50,311 --> 03:51:52,311 quarterly franchise fee 6727 03:51:53,915 --> 03:51:54,482 statements, processed 6728 03:51:54,482 --> 03:51:55,116 documentation controls 6729 03:51:55,116 --> 03:51:57,516 information They are aging 6730 03:51:58,987 --> 03:51:59,554 reports, bad debt expense 6731 03:51:59,554 --> 03:52:00,288 support and collection 6732 03:52:00,288 --> 03:52:02,688 procedures and documentation of 6733 03:52:07,610 --> 03:52:07,695 payment to the city Exide For 6734 03:52:07,695 --> 03:52:10,950 the administrative mou we 6735 03:52:10,965 --> 03:52:11,599 selected a sample of 13 6736 03:52:11,599 --> 03:52:12,266 projects to audit project 6737 03:52:12,266 --> 03:52:14,266 specific requirements things 6738 03:52:16,237 --> 03:52:16,671 like permitting inspections or 6739 03:52:16,671 --> 03:52:17,338 collaboration. 6740 03:52:17,338 --> 03:52:19,738 We also reviewed supporting 6741 03:52:20,742 --> 03:52:21,409 documentation for what we're 6742 03:52:21,409 --> 03:52:21,843 calling non project specific 6743 03:52:21,843 --> 03:52:22,510 requirements. 6744 03:52:22,510 --> 03:52:24,910 This is information sharing 6745 03:52:25,380 --> 03:52:26,460 protocols or communication 6746 03:52:26,460 --> 03:52:26,681 between Genie and the city. 6747 03:52:26,681 --> 03:52:29,810 Similarly for the utility 6748 03:52:30,718 --> 03:52:31,386 undergrounding mou we selected 6749 03:52:31,386 --> 03:52:32,530 eight in-process projects to 6750 03:52:32,530 --> 03:52:34,453 audit requirements that were 6751 03:52:35,789 --> 03:52:36,391 project specific and then 6752 03:52:36,391 --> 03:52:37,910 review review supporting 6753 03:52:37,910 --> 03:52:39,491 documentation for non project 6754 03:52:40,295 --> 03:52:40,862 specific requirements for 6755 03:52:40,862 --> 03:52:41,429 the Energy Cooperation 6756 03:52:41,429 --> 03:52:42,960 Agreement We reviewed 6757 03:52:42,960 --> 03:52:44,960 supporting documentation for 6758 03:52:48,303 --> 03:52:49,300 each requirement. 6759 03:52:49,300 --> 03:52:49,671 >> Now the results of these 6760 03:52:49,671 --> 03:52:50,338 tests indicated that we met 6761 03:52:50,338 --> 03:52:53,700 the four audit objectives in 6762 03:52:53,700 --> 03:52:53,508 all significant respects for 6763 03:52:53,508 --> 03:52:54,142 the audit period. 6764 03:52:54,142 --> 03:52:54,876 However we did include two 6765 03:52:54,876 --> 03:52:57,876 audit findings that were deemed 6766 03:52:58,112 --> 03:52:58,813 not to be significant 6767 03:52:58,813 --> 03:52:59,447 significant to the objectives 6768 03:52:59,447 --> 03:53:01,847 but warranted inclusion in 6769 03:53:03,184 --> 03:53:04,850 the report. 6770 03:53:04,850 --> 03:53:04,686 >> And now I'm going to turn it 6771 03:53:04,686 --> 03:53:05,120 to Eric to walk through 6772 03:53:05,120 --> 03:53:07,120 the findings. 6773 03:53:08,220 --> 03:53:08,623 You know, so the first of these 6774 03:53:08,623 --> 03:53:09,910 findings has to do with 6775 03:53:09,910 --> 03:53:11,910 compliance with 6776 03:53:11,893 --> 03:53:12,594 the undergrounding mou And 6777 03:53:12,594 --> 03:53:13,194 there were several sections of 6778 03:53:13,194 --> 03:53:16,194 the mou that we found 6779 03:53:17,331 --> 03:53:18,330 noncompliance and and they're 6780 03:53:18,330 --> 03:53:21,336 listed here on this slide and 6781 03:53:21,336 --> 03:53:22,700 I'll review those with you for 6782 03:53:22,700 --> 03:53:25,670 the first of those are six 11.2 6783 03:53:27,108 --> 03:53:30,912 for a project titled block b r 6784 03:53:30,912 --> 03:53:31,546 a r c g You do not complete 6785 03:53:31,546 --> 03:53:32,147 internal processes on time 6786 03:53:32,147 --> 03:53:35,147 which caused a delay in 6787 03:53:35,416 --> 03:53:36,840 assigning and inspector to 6788 03:53:36,840 --> 03:53:36,384 the project and that's Palm 6789 03:53:36,384 --> 03:53:38,384 City. 6790 03:53:40,555 --> 03:53:41,289 Edgar Highlands project. 6791 03:53:41,289 --> 03:53:44,889 Secondly, sd g did not provide 6792 03:53:45,927 --> 03:53:46,631 a written schedule of days and 6793 03:53:46,631 --> 03:53:49,931 hours in which the c an 6794 03:53:49,931 --> 03:53:50,698 inspector would be available to 6795 03:53:50,698 --> 03:53:54,298 a project titled Blockade r sd 6796 03:53:54,970 --> 03:53:55,570 g ultimately was not able to 6797 03:53:55,570 --> 03:53:56,271 provide an inspector at 6798 03:53:56,271 --> 03:53:56,771 the time of that construction 6799 03:53:56,771 --> 03:53:58,771 as a consequence. 6800 03:54:00,509 --> 03:54:04,109 So in section 743g did not 6801 03:54:04,212 --> 03:54:04,879 comply by providing a 6802 03:54:04,879 --> 03:54:06,879 construction baseline which 6803 03:54:09,500 --> 03:54:09,751 includes both an estimate of 6804 03:54:09,751 --> 03:54:10,385 cost and a schedule for 6805 03:54:10,385 --> 03:54:12,785 trenching conduit work for 6806 03:54:14,189 --> 03:54:14,823 the project titled 2bb job two 6807 03:54:14,823 --> 03:54:17,793 That's a crown point one. 6808 03:54:17,793 --> 03:54:20,793 And finally in section 834cg 6809 03:54:22,331 --> 03:54:22,864 has not submitted detailed 90% 6810 03:54:22,864 --> 03:54:23,532 design estimates in 6811 03:54:23,532 --> 03:54:25,532 the supporting documentation 6812 03:54:27,336 --> 03:54:28,300 for invoices Did not clearly 6813 03:54:28,300 --> 03:54:28,737 differentiate projects that 6814 03:54:28,737 --> 03:54:31,137 have reached the 90% completion 6815 03:54:32,400 --> 03:54:32,474 threshold as required by 6816 03:54:32,474 --> 03:54:33,410 the franchise. 6817 03:54:33,410 --> 03:54:33,741 So we have a number of 6818 03:54:33,741 --> 03:54:35,741 recommendations to address 6819 03:54:36,978 --> 03:54:37,613 these these misses so to speak. 6820 03:54:37,613 --> 03:54:40,613 The first is to establish 6821 03:54:41,116 --> 03:54:41,683 stronger project management 6822 03:54:41,683 --> 03:54:42,317 controls by developing 6823 03:54:42,317 --> 03:54:44,317 standardized timelines and 6824 03:54:46,188 --> 03:54:46,922 checklists. 6825 03:54:46,922 --> 03:54:47,623 Secondly, to assign a dedicated 6826 03:54:47,623 --> 03:54:50,230 compliance liaison or project 6827 03:54:51,326 --> 03:54:51,860 coordinator within cdg and to 6828 03:54:51,860 --> 03:54:53,860 limit these misses. 6829 03:54:55,197 --> 03:54:55,797 Third, to revise invoicing 6830 03:54:55,797 --> 03:54:58,197 backup materials to more 6831 03:54:59,134 --> 03:54:59,601 clearly distinguish that 90% 6832 03:54:59,601 --> 03:55:00,269 design estimate. 6833 03:55:00,269 --> 03:55:02,669 Fourth to establish regular 6834 03:55:04,173 --> 03:55:04,840 joint review meetings with city 6835 03:55:04,840 --> 03:55:05,574 staff They've started doing 6836 03:55:05,574 --> 03:55:09,174 those and are doing more of 6837 03:55:09,611 --> 03:55:10,312 them As a consequence of this 6838 03:55:10,312 --> 03:55:12,712 trained personnel and mou 6839 03:55:14,316 --> 03:55:14,917 requirements by reinforcing 6840 03:55:14,917 --> 03:55:15,551 compliance standards And 6841 03:55:15,551 --> 03:55:17,951 finally link compliance to 6842 03:55:19,354 --> 03:55:19,855 performance metrics or 6843 03:55:19,855 --> 03:55:20,522 oversight reviews. 6844 03:55:20,522 --> 03:55:21,156 So those are recommendations 6845 03:55:21,156 --> 03:55:23,556 that are addressed first. 6846 03:55:23,659 --> 03:55:24,360 The first findings second 6847 03:55:24,360 --> 03:55:27,960 finding on the next slide has 6848 03:55:28,430 --> 03:55:32,300 to do with the admin mou 6849 03:55:34,637 --> 03:55:35,437 section ten point b of that mou 6850 03:55:35,437 --> 03:55:36,138 as you need to not schedule 6851 03:55:36,138 --> 03:55:38,138 pre-construction meeting with 6852 03:55:39,808 --> 03:55:40,376 the city as required as 6853 03:55:40,376 --> 03:55:41,760 Eugenie's Field crews 6854 03:55:41,760 --> 03:55:43,178 incorrectly assumed that was a 6855 03:55:43,178 --> 03:55:43,846 classic Category one project 6856 03:55:43,846 --> 03:55:44,546 winner which would not have 6857 03:55:44,546 --> 03:55:46,546 required this pre-construction 6858 03:55:47,983 --> 03:55:48,583 meeting and the project was 6859 03:55:48,583 --> 03:55:48,918 actually a Category two 6860 03:55:48,918 --> 03:55:49,618 project. 6861 03:55:49,618 --> 03:55:52,655 So there's a couple of things 6862 03:55:52,655 --> 03:55:53,355 that I can do to strengthen and 6863 03:55:53,355 --> 03:55:55,755 you know, respond accordingly. 6864 03:55:56,558 --> 03:55:59,558 First by just project project 6865 03:56:01,630 --> 03:56:02,331 classification work and review 6866 03:56:02,331 --> 03:56:02,765 processes so that this doesn't 6867 03:56:02,765 --> 03:56:03,466 happen again. 6868 03:56:03,466 --> 03:56:03,966 Developing a project checklist 6869 03:56:03,966 --> 03:56:06,366 to be reviewed by 6870 03:56:06,802 --> 03:56:07,336 the supervisor before 6871 03:56:07,336 --> 03:56:08,370 construction begins. 6872 03:56:08,370 --> 03:56:08,738 And perhaps most important to 6873 03:56:08,738 --> 03:56:11,738 train field crews and project 6874 03:56:12,441 --> 03:56:13,175 managers to clearly 6875 03:56:13,175 --> 03:56:13,648 differentiate between these two 6876 03:56:13,648 --> 03:56:15,648 category types. 6877 03:56:16,912 --> 03:56:20,850 So those are the two findings 6878 03:56:20,850 --> 03:56:20,783 the status of findings from 6879 03:56:20,783 --> 03:56:21,417 the first phase of the audit 6880 03:56:21,417 --> 03:56:21,851 and I'll go through those 6881 03:56:21,851 --> 03:56:23,851 briefly here. 6882 03:56:25,421 --> 03:56:26,122 There were four findings last 6883 03:56:26,122 --> 03:56:26,722 Two of these have been 6884 03:56:26,722 --> 03:56:28,722 remediating remediated. 6885 03:56:29,191 --> 03:56:29,859 Those are three and four. 6886 03:56:29,859 --> 03:56:30,459 Number three was remediated 6887 03:56:30,459 --> 03:56:33,459 because it's no longer a 6888 03:56:34,697 --> 03:56:35,398 compliance requirement And 6889 03:56:35,398 --> 03:56:35,965 the new admin mou number four 6890 03:56:35,965 --> 03:56:37,965 was remediated because 6891 03:56:39,669 --> 03:56:40,369 the finding related to a paint 6892 03:56:40,369 --> 03:56:41,700 plant completion timing which 6893 03:56:41,700 --> 03:56:44,700 they met although they delayed 6894 03:56:45,308 --> 03:56:45,942 in meeting and getting that 6895 03:56:45,942 --> 03:56:46,542 done both the city and in 6896 03:56:46,542 --> 03:56:48,942 the study ultimately got 6897 03:56:49,712 --> 03:56:50,379 the plan completed So it wasn't 6898 03:56:50,379 --> 03:56:50,680 a compliance matter in this 6899 03:56:50,680 --> 03:56:52,680 phase. 6900 03:56:55,517 --> 03:56:56,118 The other two relate to number 6901 03:56:56,118 --> 03:56:56,786 one they're inconsistent 6902 03:56:56,786 --> 03:56:57,153 undergrounding project cost 6903 03:56:57,153 --> 03:56:59,153 estimates. 6904 03:57:00,723 --> 03:57:01,357 And so this is sort of a to be 6905 03:57:01,357 --> 03:57:03,357 determined going forward. 6906 03:57:05,628 --> 03:57:06,362 In the past there were some 6907 03:57:06,362 --> 03:57:06,963 inconsistencies in the overhead 6908 03:57:06,963 --> 03:57:07,663 allocations to the cost 6909 03:57:07,663 --> 03:57:10,630 estimates and they've cleaned 6910 03:57:11,501 --> 03:57:12,168 those up to some degree. 6911 03:57:12,168 --> 03:57:12,935 But going forward I think 6912 03:57:12,935 --> 03:57:16,272 there's still as they get into 6913 03:57:16,272 --> 03:57:16,939 more construction projects 6914 03:57:16,939 --> 03:57:17,607 there's still a need to 6915 03:57:17,607 --> 03:57:19,607 reinforce consistent project 6916 03:57:21,978 --> 03:57:22,845 cost estimates There. 6917 03:57:22,845 --> 03:57:23,446 The second one is just in terms 6918 03:57:23,446 --> 03:57:25,446 of collaborating between 6919 03:57:27,500 --> 03:57:27,750 the city and sd Junior on 6920 03:57:27,750 --> 03:57:30,750 the mou for certain contracted 6921 03:57:32,188 --> 03:57:32,755 services, the Mhsaa hasn't been 6922 03:57:32,755 --> 03:57:33,389 solicited again So to 6923 03:57:33,389 --> 03:57:36,389 the degree that when that 6924 03:57:38,628 --> 03:57:39,429 happens there more coordination 6925 03:57:39,429 --> 03:57:40,960 between the city and sga and on 6926 03:57:40,960 --> 03:57:42,565 that is merited So we didn't 6927 03:57:42,565 --> 03:57:43,199 say that's remediated but it's 6928 03:57:43,199 --> 03:57:43,566 pending the next cycle of 6929 03:57:43,566 --> 03:57:44,334 the mhsaa. 6930 03:57:44,334 --> 03:57:48,534 So with that I will turn it 6931 03:57:50,273 --> 03:57:50,640 back to the Council for 6932 03:57:50,640 --> 03:57:51,374 questions. 6933 03:57:51,374 --> 03:57:51,975 At this time I would have to 6934 03:57:51,975 --> 03:57:54,375 revert to our franchise 6935 03:57:57,413 --> 03:57:57,847 compliance review committee. 6936 03:57:57,847 --> 03:57:58,214 Hi everybody. 6937 03:57:58,214 --> 03:57:58,915 Thank you. 6938 03:57:58,915 --> 03:57:59,715 My name is Cody Hoven. 6939 03:57:59,715 --> 03:58:02,786 I'm the chair of your franchise 6940 03:58:02,786 --> 03:58:03,620 Compliance Review committee. 6941 03:58:03,620 --> 03:58:03,920 Nice to be back in the seat I 6942 03:58:03,920 --> 03:58:04,654 think. 6943 03:58:04,654 --> 03:58:07,724 And here with the Tell me about 6944 03:58:07,724 --> 03:58:08,158 Siegler the vice chair of 6945 03:58:08,158 --> 03:58:08,825 the committee. 6946 03:58:08,825 --> 03:58:09,492 We're going to split up this 6947 03:58:09,492 --> 03:58:11,892 portion of the presentation. 6948 03:58:12,996 --> 03:58:13,662 Thanks. 6949 03:58:13,662 --> 03:58:14,264 So just to remind you 6950 03:58:14,264 --> 03:58:16,664 the purpose of Franchise 6951 03:58:18,868 --> 03:58:19,669 Compliance Review Committee was 6952 03:58:19,669 --> 03:58:20,270 it was assigned a very narrow 6953 03:58:20,270 --> 03:58:22,670 scope per the franchise 6954 03:58:24,808 --> 03:58:25,575 agreement and it's formed as 6955 03:58:25,575 --> 03:58:26,308 you see here every two years to 6956 03:58:26,308 --> 03:58:28,708 review franchise compliance and 6957 03:58:30,413 --> 03:58:31,147 recommend to the city council 6958 03:58:31,147 --> 03:58:31,848 whether the franchise should be 6959 03:58:31,848 --> 03:58:32,415 renewed for a secondary term. 6960 03:58:32,415 --> 03:58:35,415 So we're a function of 6961 03:58:36,152 --> 03:58:36,853 the Brown Act compliant 6962 03:58:36,853 --> 03:58:37,553 Committee and comply with all 6963 03:58:37,553 --> 03:58:41,491 of the rules of the Brown Act 6964 03:58:41,491 --> 03:58:42,240 in our meetings. 6965 03:58:42,240 --> 03:58:42,626 Additionally, our 6966 03:58:42,626 --> 03:58:43,193 responsibilities include 6967 03:58:43,193 --> 03:58:45,193 reviewing and discuss 6968 03:58:47,129 --> 03:58:47,730 discussing the franchise audit 6969 03:58:47,730 --> 03:58:50,730 what you just heard in 6970 03:58:52,369 --> 03:58:53,690 collaboration with the auditor 6971 03:58:53,690 --> 03:58:53,703 and preparing a comprehensive 6972 03:58:53,703 --> 03:58:56,703 written report for you all 6973 03:58:59,976 --> 03:59:00,677 which we provided And I quickly 6974 03:59:00,677 --> 03:59:01,210 went quickly through these and 6975 03:59:01,210 --> 03:59:03,610 then making a formal 6976 03:59:04,381 --> 03:59:05,480 recommendation to City Council 6977 03:59:05,480 --> 03:59:05,582 regarding whether to approve 6978 03:59:05,582 --> 03:59:07,582 automatic renewal of 6979 03:59:08,180 --> 03:59:11,180 the franchise for a secondary 6980 03:59:14,725 --> 03:59:16,725 ten year term. 6981 03:59:20,931 --> 03:59:21,531 Next on the committee found 6982 03:59:21,531 --> 03:59:22,199 that Junior demonstrated 6983 03:59:22,199 --> 03:59:24,599 overall compliance with all 6984 03:59:26,470 --> 03:59:27,170 four agreements The electric 6985 03:59:27,170 --> 03:59:27,804 and gas franchise agreements, 6986 03:59:27,804 --> 03:59:28,338 the administrative mou or 6987 03:59:28,338 --> 03:59:28,905 the utility utility 6988 03:59:28,905 --> 03:59:30,905 undergrounding mou and 6989 03:59:32,209 --> 03:59:32,576 the energy Cooperation 6990 03:59:32,576 --> 03:59:33,309 Agreement. 6991 03:59:33,309 --> 03:59:34,110 The audit identified only a few 6992 03:59:34,110 --> 03:59:37,110 minor issues mostly related to 6993 03:59:38,681 --> 03:59:39,149 documentation scheduling or 6994 03:59:39,149 --> 03:59:39,749 classification. 6995 03:59:39,749 --> 03:59:40,350 These were isolated and 6996 03:59:40,350 --> 03:59:42,750 technically and with no 6997 03:59:44,388 --> 03:59:45,550 evidence of systemic problems 6998 03:59:45,550 --> 03:59:45,455 financial harm or governance 6999 03:59:45,455 --> 03:59:46,156 breakdowns. 7000 03:59:46,156 --> 03:59:48,556 The committee recommends that 7001 03:59:50,927 --> 03:59:51,562 routine monitoring or franchise 7002 03:59:51,562 --> 03:59:52,950 compliance continue with a 7003 03:59:52,950 --> 03:59:52,763 focus on clarifying 7004 03:59:52,763 --> 03:59:54,763 expectations, standardizing 7005 03:59:56,899 --> 03:59:57,534 documentation and reinforcing 7006 03:59:57,534 --> 03:59:58,268 early coordination between 7007 03:59:58,268 --> 04:00:01,872 F.D.A. And city departments for 7008 04:00:01,872 --> 04:00:02,539 the administrative mou This 7009 04:00:02,539 --> 04:00:03,106 means strengthening internal 7010 04:00:03,106 --> 04:00:03,740 controls and aligning 7011 04:00:03,740 --> 04:00:05,740 renegotiate renegotiation 7012 04:00:07,845 --> 04:00:08,279 timelines with the committees 7013 04:00:08,279 --> 04:00:08,946 review cycle. 7014 04:00:08,946 --> 04:00:09,646 Right now there's a timing 7015 04:00:09,646 --> 04:00:12,460 mismatch mismatch between when 7016 04:00:14,151 --> 04:00:14,718 the agreements can be 7017 04:00:14,718 --> 04:00:15,452 renegotiated and when 7018 04:00:15,452 --> 04:00:15,853 the committee is actually doing 7019 04:00:15,853 --> 04:00:16,487 its review. 7020 04:00:16,487 --> 04:00:18,887 That means the committee's 7021 04:00:20,490 --> 04:00:21,910 input MAY come too late to 7022 04:00:21,910 --> 04:00:21,658 meaningful meaningfully 7023 04:00:21,658 --> 04:00:22,292 influence the process. 7024 04:00:22,292 --> 04:00:25,292 What we're proposing is to 7025 04:00:26,730 --> 04:00:27,297 better align those timelines so 7026 04:00:27,297 --> 04:00:27,898 when the renegotiation 7027 04:00:27,898 --> 04:00:28,599 opportunities arise they 7028 04:00:28,599 --> 04:00:30,999 coincide with the committee's 7029 04:00:33,300 --> 04:00:33,670 review cycle allowing their 7030 04:00:33,670 --> 04:00:34,104 work to directly inform city 7031 04:00:34,104 --> 04:00:34,705 decisions for 7032 04:00:34,705 --> 04:00:35,305 the undergrounding mou. 7033 04:00:35,305 --> 04:00:37,305 The committee recommends 7034 04:00:39,143 --> 04:00:39,843 providing detailed cost 7035 04:00:39,843 --> 04:00:40,477 breakdowns and establishing a 7036 04:00:40,477 --> 04:00:41,178 regular review mechanism. 7037 04:00:41,178 --> 04:00:44,778 Those costs are often shown as 7038 04:00:46,830 --> 04:00:46,617 big lump sums and not broken 7039 04:00:46,617 --> 04:00:47,518 into enough detail. 7040 04:00:47,518 --> 04:00:51,188 So you know x is for labor wise 7041 04:00:51,188 --> 04:00:51,889 for overhead, for construction. 7042 04:00:51,889 --> 04:00:52,590 Right now it's like getting a 7043 04:00:52,590 --> 04:00:53,190 restaurant bill that just says 7044 04:00:53,190 --> 04:00:56,190 a total of $200 with no 7045 04:00:57,228 --> 04:00:57,962 itemized itemization. 7046 04:00:57,962 --> 04:00:58,696 The committee is recommending 7047 04:00:58,696 --> 04:00:59,263 an itemized receipt and regular 7048 04:00:59,263 --> 04:01:02,263 check ins to make sure 7049 04:01:02,900 --> 04:01:03,467 everything looks reasonable for 7050 04:01:03,467 --> 04:01:03,834 the Energy Cooperation 7051 04:01:03,834 --> 04:01:04,535 Agreement. 7052 04:01:04,535 --> 04:01:05,690 The committee suggests setting 7053 04:01:05,690 --> 04:01:07,690 realistic timelines, 7054 04:01:08,372 --> 04:01:09,720 maintaining energy efficient 7055 04:01:09,720 --> 04:01:09,773 program commitments, improving 7056 04:01:09,773 --> 04:01:10,407 reporting and expanding public 7057 04:01:10,407 --> 04:01:12,407 engagement opportunities. 7058 04:01:14,678 --> 04:01:15,412 Next slide please. 7059 04:01:15,412 --> 04:01:16,800 While complaints are strong, 7060 04:01:16,800 --> 04:01:16,814 the committee noted several 7061 04:01:16,814 --> 04:01:17,214 areas where the processes could 7062 04:01:17,214 --> 04:01:19,214 be improved. 7063 04:01:20,651 --> 04:01:21,352 These include ensuring 7064 04:01:21,352 --> 04:01:22,190 pre-construction meetings are 7065 04:01:22,190 --> 04:01:22,620 consistently held clarifying 7066 04:01:22,620 --> 04:01:24,620 documentation practices, 7067 04:01:27,258 --> 04:01:27,992 increasing transparency and 7068 04:01:27,992 --> 04:01:28,692 project cost enhancing tracking 7069 04:01:28,692 --> 04:01:29,326 and reporting under the Energy 7070 04:01:29,326 --> 04:01:31,326 Cooperation Agreement and 7071 04:01:32,830 --> 04:01:33,431 creating additional 7072 04:01:33,431 --> 04:01:34,165 opportunities for public 7073 04:01:34,165 --> 04:01:34,831 engagement before agreements or 7074 04:01:34,831 --> 04:01:36,831 modifications are executed. 7075 04:01:39,136 --> 04:01:39,737 Next slide please. 7076 04:01:39,737 --> 04:01:40,404 The committee recommends 7077 04:01:40,404 --> 04:01:41,105 continuing to monitor prior 7078 04:01:41,105 --> 04:01:44,105 audit needs to ensure progress 7079 04:01:44,976 --> 04:01:45,643 is sustained. 7080 04:01:45,643 --> 04:01:46,277 Recognizing that some issues 7081 04:01:46,277 --> 04:01:46,977 require ongoing management 7082 04:01:46,977 --> 04:01:50,577 rather than one time fixes, it 7083 04:01:51,549 --> 04:01:52,183 also suggest creating plain 7084 04:01:52,183 --> 04:01:52,783 language summaries of all 7085 04:01:52,783 --> 04:01:53,451 agreements to help both 7086 04:01:53,451 --> 04:01:56,451 the committee and the public 7087 04:01:58,289 --> 04:01:58,789 understand the purpose process 7088 04:01:58,789 --> 04:01:59,457 and the timelines. 7089 04:01:59,457 --> 04:02:01,457 Renegotiation timelines once 7090 04:02:04,262 --> 04:02:04,895 again should be aligned should 7091 04:02:04,895 --> 04:02:05,496 align with biennial review 7092 04:02:05,496 --> 04:02:06,163 cycle to improve public 7093 04:02:06,163 --> 04:02:08,563 engagement and the Committee 7094 04:02:10,134 --> 04:02:10,735 should have access to draft 7095 04:02:10,735 --> 04:02:11,680 audit findings for early 7096 04:02:11,680 --> 04:02:11,769 review. 7097 04:02:11,769 --> 04:02:12,436 Oversight shouldn't just focus 7098 04:02:12,436 --> 04:02:15,436 on compliance though We also 7099 04:02:15,973 --> 04:02:16,574 need to look at financial 7100 04:02:16,574 --> 04:02:17,308 impacts and how these 7101 04:02:17,308 --> 04:02:17,842 agreements affect the community 7102 04:02:17,842 --> 04:02:18,509 creating structured 7103 04:02:18,509 --> 04:02:20,509 opportunities for Republican 7104 04:02:22,480 --> 04:02:23,181 input along with more 7105 04:02:23,181 --> 04:02:23,881 standardized reporting across 7106 04:02:23,881 --> 04:02:24,582 all franchise agreements would 7107 04:02:24,582 --> 04:02:26,982 improve transparency and make 7108 04:02:28,152 --> 04:02:28,753 it easier for the council and 7109 04:02:28,753 --> 04:02:29,420 the public to review and 7110 04:02:29,420 --> 04:02:31,420 understand what's happening 7111 04:02:33,491 --> 04:02:34,225 next Like this. 7112 04:02:34,225 --> 04:02:34,926 The committee observed that not 7113 04:02:34,926 --> 04:02:35,560 all franchise activities carry 7114 04:02:35,560 --> 04:02:39,160 the same level of risk or 7115 04:02:39,597 --> 04:02:40,264 public concern. 7116 04:02:40,264 --> 04:02:40,932 So oversight should focus on 7117 04:02:40,932 --> 04:02:43,932 areas of greatest impact For 7118 04:02:44,835 --> 04:02:45,503 example routine administrative 7119 04:02:45,503 --> 04:02:46,237 updates like minor contract 7120 04:02:46,237 --> 04:02:46,871 amendments or reporting changes 7121 04:02:46,871 --> 04:02:49,271 don't typically have major 7122 04:02:51,175 --> 04:02:51,743 community impacts and can be 7123 04:02:51,743 --> 04:02:52,343 reviewed more quickly. 7124 04:02:52,343 --> 04:02:53,120 But decisions involving 7125 04:02:53,120 --> 04:02:55,120 undergrounding projects rate 7126 04:02:57,949 --> 04:02:58,516 impacts or long term renewal 7127 04:02:58,516 --> 04:02:59,500 terms have significant 7128 04:02:59,500 --> 04:03:01,500 financial and public 7129 04:03:03,121 --> 04:03:03,821 implications So those should be 7130 04:03:03,821 --> 04:03:04,489 should receive deeper scrutiny 7131 04:03:04,489 --> 04:03:05,189 and more detailed oversight. 7132 04:03:05,189 --> 04:03:08,189 Some prior audit findings like 7133 04:03:09,927 --> 04:03:10,562 undergrounding cost variability 7134 04:03:10,562 --> 04:03:11,228 have improved while others 7135 04:03:11,228 --> 04:03:13,228 require ongoing management. 7136 04:03:15,400 --> 04:03:16,000 In this case continuous 7137 04:03:16,000 --> 04:03:16,701 improvement rather than 7138 04:03:16,701 --> 04:03:17,268 the complete absence of issues 7139 04:03:17,268 --> 04:03:20,268 is is a reasonable but 7140 04:03:21,906 --> 04:03:22,506 reasonable benchmark. 7141 04:03:22,506 --> 04:03:23,108 To strengthen oversight, 7142 04:03:23,108 --> 04:03:23,708 the committee recommends 7143 04:03:23,708 --> 04:03:25,708 establishing successful 7144 04:03:27,579 --> 04:03:28,179 criteria beyond compliance for 7145 04:03:28,179 --> 04:03:28,747 example instead of only 7146 04:03:28,747 --> 04:03:30,747 confirming compliance. 7147 04:03:33,170 --> 04:03:33,585 We would also look at look at 7148 04:03:33,585 --> 04:03:34,319 outcomes like whether 7149 04:03:34,319 --> 04:03:34,986 the project stayed on budget or 7150 04:03:34,986 --> 04:03:37,386 were delivered on schedule. 7151 04:03:39,390 --> 04:03:40,250 Sharing all public comments So 7152 04:03:40,250 --> 04:03:40,625 feedback from residents is 7153 04:03:40,625 --> 04:03:42,625 fully visible throughout 7154 04:03:44,295 --> 04:03:44,596 the process not just summarized 7155 04:03:44,596 --> 04:03:45,263 . 7156 04:03:45,263 --> 04:03:45,930 Expanding structured public 7157 04:03:45,930 --> 04:03:48,930 input early in the agreement 7158 04:03:50,502 --> 04:03:51,202 process for instance holding 7159 04:03:51,202 --> 04:03:51,903 engagement sessions before key 7160 04:03:51,903 --> 04:03:52,604 terms are finalized not after 7161 04:03:52,604 --> 04:03:55,400 decision decisions are largely 7162 04:03:56,441 --> 04:03:57,141 set. 7163 04:03:57,141 --> 04:03:57,475 Enhancing audit scope for cost 7164 04:03:57,475 --> 04:03:58,276 drivers. 7165 04:03:58,276 --> 04:04:01,876 So instead of just seeing total 7166 04:04:03,482 --> 04:04:04,149 project costs we can clearly 7167 04:04:04,149 --> 04:04:04,783 see the breakdowns you know 7168 04:04:04,783 --> 04:04:07,183 like earlier and itemized 7169 04:04:08,253 --> 04:04:08,954 receipt and standardizing 7170 04:04:08,954 --> 04:04:09,521 reporting across all franchise 7171 04:04:09,521 --> 04:04:10,222 agreements to improve 7172 04:04:10,222 --> 04:04:12,222 transparency, consistency and 7173 04:04:12,824 --> 04:04:13,592 accessibility for the committee 7174 04:04:13,592 --> 04:04:16,592 ,city council and the public 7175 04:04:19,731 --> 04:04:20,298 in general. 7176 04:04:20,298 --> 04:04:20,899 And so consider our 7177 04:04:20,899 --> 04:04:21,233 recommendations a bigger 7178 04:04:21,233 --> 04:04:23,233 picture. 7179 04:04:25,737 --> 04:04:26,438 We based on the information we 7180 04:04:26,438 --> 04:04:27,105 had in front of us and barring 7181 04:04:27,105 --> 04:04:27,506 any other decisions you all 7182 04:04:27,506 --> 04:04:29,274 might make. 7183 04:04:29,274 --> 04:04:30,410 The committee recommended 7184 04:04:30,410 --> 04:04:33,410 allowing the franchise to renew 7185 04:04:36,348 --> 04:04:37,150 with conditions. 7186 04:04:37,150 --> 04:04:37,616 So this Conditional Renewal 7187 04:04:37,616 --> 04:04:40,160 Council decision per our 7188 04:04:41,586 --> 04:04:42,287 recommendation should consider 7189 04:04:42,287 --> 04:04:42,887 both individual agreements and 7190 04:04:42,887 --> 04:04:43,588 among others as well as 7191 04:04:43,588 --> 04:04:44,289 the overall structure and long 7192 04:04:44,289 --> 04:04:47,289 term impact of the franchise. 7193 04:04:49,260 --> 04:04:49,861 So our recommendation for 7194 04:04:49,861 --> 04:04:50,429 renewals conditioned on 7195 04:04:50,429 --> 04:04:51,129 aligning renegotiation 7196 04:04:51,129 --> 04:04:53,529 timelines to ensure meaningful 7197 04:04:54,599 --> 04:04:55,233 public and council input before 7198 04:04:55,233 --> 04:04:55,934 agreements are finalized. 7199 04:04:55,934 --> 04:05:00,500 So we talked about some of our 7200 04:05:00,500 --> 04:05:00,872 key compliance. 7201 04:05:00,872 --> 04:05:01,573 i think the key findings as a 7202 04:05:01,573 --> 04:05:02,307 student is generally compliant 7203 04:05:02,307 --> 04:05:06,211 based on the scope of the audit 7204 04:05:06,211 --> 04:05:06,845 question posed with only minor 7205 04:05:06,845 --> 04:05:07,546 issues noted in the audit. 7206 04:05:07,546 --> 04:05:08,213 Underground costs are high and 7207 04:05:08,213 --> 04:05:08,547 overhead transparency could 7208 04:05:08,547 --> 04:05:10,547 improve. 7209 04:05:12,250 --> 04:05:12,918 And previous concerns have been 7210 04:05:12,918 --> 04:05:13,519 mostly addressed But climate 7211 04:05:13,519 --> 04:05:15,919 action progress has been 7212 04:05:19,900 --> 04:05:19,791 limited and public input was 7213 04:05:19,791 --> 04:05:20,920 considered in our meetings as 7214 04:05:20,920 --> 04:05:20,759 well. 7215 04:05:20,759 --> 04:05:22,661 And the three new one would 7216 04:05:22,661 --> 04:05:25,610 preserve flexibility for future 7217 04:05:29,101 --> 04:05:29,835 options like mineralization. 7218 04:05:29,835 --> 04:05:30,469 This conditional renewal is 7219 04:05:30,469 --> 04:05:32,869 the approach our committee 7220 04:05:35,741 --> 04:05:36,442 recommended because it supports 7221 04:05:36,442 --> 04:05:37,760 both San Diego ratepayers and 7222 04:05:37,760 --> 04:05:37,476 the city's broader policy 7223 04:05:37,476 --> 04:05:39,476 objectives. 7224 04:05:41,914 --> 04:05:42,614 But I would like to underscore 7225 04:05:42,614 --> 04:05:43,315 that it is important to 7226 04:05:43,315 --> 04:05:44,150 recognize that simply meeting 7227 04:05:44,150 --> 04:05:47,150 the terms of these agreements 7228 04:05:48,153 --> 04:05:48,754 the compliance alone doesn't 7229 04:05:48,754 --> 04:05:49,388 fully address the bigger 7230 04:05:49,388 --> 04:05:50,890 concerns of how you define 7231 04:05:50,890 --> 04:05:53,689 success As a lot of discussion 7232 04:05:53,692 --> 04:05:54,326 you've heard today. 7233 04:05:54,326 --> 04:05:55,270 Things like affordability, 7234 04:05:55,270 --> 04:05:55,694 potential rate impacts or how 7235 04:05:55,694 --> 04:05:56,428 these agreements align with 7236 04:05:56,428 --> 04:06:00,280 the city's long term energy and 7237 04:06:00,320 --> 04:06:00,699 climate goals. 7238 04:06:00,699 --> 04:06:01,433 This is why renewal is 7239 04:06:01,433 --> 04:06:02,100 ultimately a policy decision to 7240 04:06:02,100 --> 04:06:03,135 city council balancing 7241 04:06:03,135 --> 04:06:05,535 compliance with public value 7242 04:06:09,441 --> 04:06:09,909 and long term priorities. 7243 04:06:09,909 --> 04:06:10,509 >> Thank you. 7244 04:06:10,509 --> 04:06:11,100 We're happy to take any 7245 04:06:11,100 --> 04:06:11,377 questions I think. 7246 04:06:11,377 --> 04:06:11,810 All right. 7247 04:06:11,810 --> 04:06:12,311 Thank you for 7248 04:06:12,311 --> 04:06:14,311 the presentations. 7249 04:06:15,948 --> 04:06:16,481 Special shout out to Cody Soto 7250 04:06:16,481 --> 04:06:17,820 me and everybody on 7251 04:06:17,820 --> 04:06:19,820 the franchise compliance 7252 04:06:21,420 --> 04:06:22,188 agreement the volunteers. 7253 04:06:22,188 --> 04:06:22,888 You've got some fans out there 7254 04:06:22,888 --> 04:06:27,880 and all the work to do that. 7255 04:06:27,159 --> 04:06:27,693 So with that please proceed 7256 04:06:27,693 --> 04:06:28,600 with public comment. 7257 04:06:28,600 --> 04:06:30,600 Thank you. 7258 04:06:33,650 --> 04:06:33,766 Council PRESIDENT. 7259 04:06:33,766 --> 04:06:34,433 This item received one comment 7260 04:06:34,433 --> 04:06:35,101 in favor and one comment in 7261 04:06:35,101 --> 04:06:38,101 opposition via our e comment 7262 04:06:38,804 --> 04:06:39,271 form which had been distributed 7263 04:06:39,271 --> 04:06:39,939 to the Council. 7264 04:06:39,939 --> 04:06:40,639 We will begin with in-person 7265 04:06:40,639 --> 04:06:41,574 comment allegedly Audra please 7266 04:06:41,574 --> 04:06:44,574 come forward You'll have one 7267 04:06:47,880 --> 04:06:50,880 minute to speak or serve. 7268 04:06:54,553 --> 04:06:55,254 Feels like we're as de genies 7269 04:06:55,254 --> 04:06:57,654 really And it's just 7270 04:07:00,726 --> 04:07:01,460 interesting to have them here 7271 04:07:01,460 --> 04:07:05,600 and talking about like how much 7272 04:07:05,364 --> 04:07:06,232 is it really going to cost and 7273 04:07:06,232 --> 04:07:07,330 it's like 4 to 7 billion and 7274 04:07:07,330 --> 04:07:10,690 then it's like be honest and 7275 04:07:10,690 --> 04:07:10,803 it's like okay, 6 to 8. 7276 04:07:10,803 --> 04:07:11,771 So interesting how we just let 7277 04:07:11,771 --> 04:07:15,374 this go on and as long as we 7278 04:07:15,374 --> 04:07:16,410 make sure they're compliant 7279 04:07:16,410 --> 04:07:19,410 with these agreements But no 7280 04:07:20,980 --> 04:07:21,647 wonder why the cost is high for 7281 04:07:21,647 --> 04:07:22,248 undergrounding because they 7282 04:07:22,248 --> 04:07:22,715 make profit off of this 7283 04:07:22,715 --> 04:07:23,416 infrastructure. 7284 04:07:23,416 --> 04:07:27,160 And so I'm wondering if you're 7285 04:07:27,987 --> 04:07:28,754 conditional renewal can be like 7286 04:07:28,754 --> 04:07:32,954 any kind of profit you make you 7287 04:07:33,292 --> 04:07:33,926 give it to us or half of it so 7288 04:07:33,926 --> 04:07:34,560 that the people can start 7289 04:07:34,560 --> 04:07:35,228 getting their money back. 7290 04:07:35,228 --> 04:07:38,228 It's like I don't understand 7291 04:07:38,865 --> 04:07:39,632 why we just kind of bend over 7292 04:07:39,632 --> 04:07:39,965 and allow them to do these 7293 04:07:39,965 --> 04:07:40,566 things. 7294 04:07:40,566 --> 04:07:40,934 It's like you know it's 7295 04:07:40,934 --> 04:07:41,734 happening. 7296 04:07:41,734 --> 04:07:45,705 You know why their cost is high 7297 04:07:45,705 --> 04:07:46,405 and why they're profiting. 7298 04:07:46,405 --> 04:07:46,840 But yeah, we just continue to 7299 04:07:46,840 --> 04:07:47,573 let it happen. 7300 04:07:47,573 --> 04:07:47,941 How about you guys take some of 7301 04:07:47,941 --> 04:07:49,941 that back? 7302 04:07:51,844 --> 04:07:52,545 I mean you're the ones with 7303 04:07:52,545 --> 04:07:52,945 the agreements that should get 7304 04:07:52,945 --> 04:07:54,945 off the top. 7305 04:07:57,951 --> 04:07:58,484 >> Thank you, Blair Beckman And 7306 04:07:58,484 --> 04:07:59,252 while Blair comes to 7307 04:07:59,252 --> 04:08:02,252 the microphone, could we have 7308 04:08:04,824 --> 04:08:05,558 Anthony Ralphs or Seldon? 7309 04:08:05,558 --> 04:08:06,359 Yeah and Bob because these Can 7310 04:08:06,359 --> 04:08:09,662 you please come to the front 7311 04:08:09,662 --> 04:08:10,162 row? 7312 04:08:10,162 --> 04:08:10,730 Hi, we're Beekman. 7313 04:08:10,730 --> 04:08:13,130 Thanks for the report. 7314 04:08:15,235 --> 04:08:15,935 Thanks for the words on working 7315 04:08:15,935 --> 04:08:18,335 on undergrounding issues that 7316 04:08:20,673 --> 04:08:21,407 needs to be better specified. 7317 04:08:21,407 --> 04:08:22,108 I was trying to specify 7318 04:08:22,108 --> 04:08:22,775 previously that if we're going 7319 04:08:22,775 --> 04:08:25,175 to do undergrounding things 7320 04:08:26,479 --> 04:08:27,146 there is little neighborhoods 7321 04:08:27,146 --> 04:08:27,881 that have undergrounding you 7322 04:08:27,881 --> 04:08:30,881 know, funding sources and we 7323 04:08:32,752 --> 04:08:33,319 can consider that as a 7324 04:08:33,319 --> 04:08:34,540 municipality process. 7325 04:08:34,540 --> 04:08:38,254 I want to make that more clear. 7326 04:08:38,558 --> 04:08:38,925 Thank you for the ideas of 7327 04:08:38,925 --> 04:08:39,259 oversight. 7328 04:08:39,259 --> 04:08:39,993 Um yeah. 7329 04:08:39,993 --> 04:08:43,593 Basically what I was saying was 7330 04:08:44,330 --> 04:08:44,898 that we don't have to fully 7331 04:08:44,898 --> 04:08:45,531 rely on municipality. 7332 04:08:45,531 --> 04:08:46,232 We can rely on San Diego 7333 04:08:46,232 --> 04:08:48,632 community energy itself and 7334 04:08:50,570 --> 04:08:50,970 nothing in this capacity Those 7335 04:08:50,970 --> 04:08:51,638 are options. 7336 04:08:51,638 --> 04:08:54,638 Thank you for the oversight 7337 04:08:56,900 --> 04:08:56,810 process that you've offered 7338 04:08:56,810 --> 04:09:01,100 overall to do The big items on 7339 04:09:01,881 --> 04:09:02,482 public projects is good also to 7340 04:09:02,482 --> 04:09:03,116 offer you know what are 7341 04:09:03,116 --> 04:09:03,783 the little administrative 7342 04:09:03,783 --> 04:09:06,183 signatures Where's a little 7343 04:09:08,121 --> 04:09:08,755 space for that that can be 7344 04:09:08,755 --> 04:09:09,550 available to the public as 7345 04:09:09,550 --> 04:09:09,789 well? 7346 04:09:09,789 --> 04:09:10,156 I think that can be helpful and 7347 04:09:10,156 --> 04:09:10,523 important. 7348 04:09:10,523 --> 04:09:10,891 Thank you. 7349 04:09:10,891 --> 04:09:12,891 Thank you. 7350 04:09:13,493 --> 04:09:14,361 Thank you. 7351 04:09:14,361 --> 04:09:16,761 >> Anthony Ralphs followed by 7352 04:09:19,166 --> 04:09:19,866 Laurie Saldana City Council. 7353 04:09:19,866 --> 04:09:21,866 >> Thank you for 7354 04:09:25,172 --> 04:09:25,605 the presentation by the Audit 7355 04:09:25,605 --> 04:09:26,439 group. 7356 04:09:26,439 --> 04:09:27,400 I took a couple of notes on 7357 04:09:27,400 --> 04:09:27,707 the things that I heard. 7358 04:09:27,707 --> 04:09:28,408 I heard number one that they 7359 04:09:28,408 --> 04:09:30,408 didn't finished undergrounding 7360 04:09:32,145 --> 04:09:32,879 on time, that they didn't have 7361 04:09:32,879 --> 04:09:33,580 standardized timelines and that 7362 04:09:33,580 --> 04:09:35,980 the construction baseline for 7363 04:09:37,840 --> 04:09:37,717 cost and schedule are rather 7364 04:09:37,717 --> 04:09:38,351 that they didn't schedule 7365 04:09:38,351 --> 04:09:38,985 pre-construction meetings. 7366 04:09:38,985 --> 04:09:42,585 These are just the ways in 7367 04:09:42,923 --> 04:09:43,590 which you need $1 billion 7368 04:09:43,590 --> 04:09:44,324 profit in company every year 7369 04:09:44,324 --> 04:09:44,958 has been out of compliance just 7370 04:09:44,958 --> 04:09:48,558 some of the ways in which 7371 04:09:48,729 --> 04:09:49,563 they've been out of compliance 7372 04:09:49,563 --> 04:09:50,263 that I heard that I got to take 7373 04:09:50,263 --> 04:09:50,964 notes on which it was hard to 7374 04:09:50,964 --> 04:09:53,364 do because the representatives 7375 04:09:55,102 --> 04:09:55,802 from sd g are so loud and 7376 04:09:55,802 --> 04:09:56,303 they're talking right now when 7377 04:09:56,303 --> 04:09:56,970 I'm trying to give 7378 04:09:56,970 --> 04:09:57,671 the presentation and one of 7379 04:09:57,671 --> 04:10:01,271 them is eating your popcorn so 7380 04:10:01,441 --> 04:10:02,109 incredibly loudly that it's 7381 04:10:02,109 --> 04:10:02,743 really difficult for me and 7382 04:10:02,743 --> 04:10:03,443 it's really difficult for 7383 04:10:03,443 --> 04:10:06,880 the public to have trust in me 7384 04:10:06,880 --> 04:10:07,581 when they're talking in 7385 04:10:07,581 --> 04:10:08,315 the middle of someone giving a 7386 04:10:08,315 --> 04:10:08,982 presentation on how they're out 7387 04:10:08,982 --> 04:10:11,982 of compliance and eating so 7388 04:10:12,319 --> 04:10:12,986 loud that I can't even write 7389 04:10:12,986 --> 04:10:13,687 down the notes as to all 7390 04:10:13,687 --> 04:10:14,321 the ways in which they're out 7391 04:10:14,321 --> 04:10:16,721 of compliance yet they're 7392 04:10:17,591 --> 04:10:18,191 making $1 billion a year and 7393 04:10:18,191 --> 04:10:18,792 they're asking for their 7394 04:10:18,792 --> 04:10:19,526 franchise board renewal. 7395 04:10:19,526 --> 04:10:22,526 >> Thank you does conclude your 7396 04:10:23,997 --> 04:10:24,832 time. 7397 04:10:24,832 --> 04:10:27,832 Lori Saldana followed by Vikas 7398 04:10:28,602 --> 04:10:29,369 Whiskey Thank you. 7399 04:10:29,369 --> 04:10:29,970 So ultimately I think we need 7400 04:10:29,970 --> 04:10:32,970 to say is this meeting 7401 04:10:35,542 --> 04:10:36,210 the needs of utility rate 7402 04:10:36,210 --> 04:10:36,844 payers And there are many 7403 04:10:36,844 --> 04:10:37,544 things here that if you're 7404 04:10:37,544 --> 04:10:39,944 committed to improve customer 7405 04:10:41,810 --> 04:10:41,848 service they were delays. 7406 04:10:41,848 --> 04:10:42,483 We have a domino effect of 7407 04:10:42,483 --> 04:10:44,883 missed deadlines and other 7408 04:10:47,254 --> 04:10:47,554 things that delay the outcomes 7409 04:10:47,554 --> 04:10:48,254 . 7410 04:10:48,254 --> 04:10:48,622 So what are the consequences 7411 04:10:48,622 --> 04:10:49,423 for this? 7412 04:10:49,423 --> 04:10:53,230 That's my question When if you 7413 04:10:53,293 --> 04:10:53,994 do a customer service survey 7414 04:10:53,994 --> 04:10:54,695 and you find out that they're 7415 04:10:54,695 --> 04:10:55,228 not meeting the needs of your 7416 04:10:55,228 --> 04:10:57,228 customers, what are 7417 04:10:59,333 --> 04:11:00,340 the consequences? 7418 04:11:00,340 --> 04:11:00,767 What do you change? 7419 04:11:00,767 --> 04:11:01,502 And I think that's been missing 7420 04:11:01,502 --> 04:11:05,102 from these reports for the last 7421 04:11:05,706 --> 04:11:06,440 few cycles Are the meeting 7422 04:11:06,440 --> 04:11:07,141 formats available for people to 7423 04:11:07,141 --> 04:11:07,775 participate are accessible to 7424 04:11:07,775 --> 04:11:11,178 the public The ones that I 7425 04:11:11,178 --> 04:11:11,845 happen to have in the middle of 7426 04:11:11,845 --> 04:11:12,579 the day when most people are 7427 04:11:12,579 --> 04:11:13,115 not able to participate I think 7428 04:11:13,115 --> 04:11:15,115 that's problematic. 7429 04:11:17,851 --> 04:11:18,519 So in general talking about 7430 04:11:18,519 --> 04:11:20,919 undergrounding my family has 7431 04:11:23,290 --> 04:11:23,857 had the same house for 60 years 7432 04:11:23,857 --> 04:11:24,591 we've been paying into 7433 04:11:24,591 --> 04:11:24,892 undergrounding is delay, delay, 7434 04:11:24,892 --> 04:11:26,892 delay. 7435 04:11:31,798 --> 04:11:32,466 So what are the consequences 7436 04:11:32,466 --> 04:11:32,800 for delaying basic customer 7437 04:11:32,800 --> 04:11:33,500 service? 7438 04:11:33,500 --> 04:11:34,201 You know, there appeared to be 7439 04:11:34,201 --> 04:11:37,201 nothing but because it's been 7440 04:11:38,973 --> 04:11:41,973 followed by promises I'm not 7441 04:11:45,846 --> 04:11:46,546 deeply informed on this issue 7442 04:11:46,546 --> 04:11:47,114 and I'm mostly sympathetic to 7443 04:11:47,114 --> 04:11:49,514 ratepayers But it's my 7444 04:11:51,184 --> 04:11:51,919 understanding from city and 7445 04:11:51,919 --> 04:11:52,653 union representatives that they 7446 04:11:52,653 --> 04:11:56,253 are operating on their own land 7447 04:11:57,224 --> 04:11:57,992 or land that they have leased 7448 04:11:57,992 --> 04:12:01,592 or from their own funds over 7449 04:12:02,897 --> 04:12:03,564 many years Now that doesn't 7450 04:12:03,564 --> 04:12:04,231 mean that the city shouldn't 7451 04:12:04,231 --> 04:12:07,831 take a role in ensuring that 7452 04:12:08,636 --> 04:12:09,370 citizens are treated fairly. 7453 04:12:09,370 --> 04:12:12,970 You should but I find it 7454 04:12:15,420 --> 04:12:15,776 inexplicable that here you are 7455 04:12:15,776 --> 04:12:18,176 investigating and reporting and 7456 04:12:20,714 --> 04:12:21,549 auditing what sd, g and e does 7457 04:12:21,549 --> 04:12:22,160 as a private business on mostly 7458 04:12:22,160 --> 04:12:24,160 their own land. 7459 04:12:26,888 --> 04:12:27,588 While you have refused to do 7460 04:12:27,588 --> 04:12:29,988 any investigation or auditing 7461 04:12:32,760 --> 04:12:33,360 of a private business or 7462 04:12:33,360 --> 04:12:34,280 operating on our public 7463 04:12:34,280 --> 04:12:37,280 parkland at the Torrey Pines 7464 04:12:39,901 --> 04:12:40,568 Glider port, can any of you 7465 04:12:40,568 --> 04:12:41,200 explain that inconsistency? 7466 04:12:41,200 --> 04:12:42,971 >> Thank you. 7467 04:12:42,971 --> 04:12:45,971 That does conclude your time. 7468 04:12:55,950 --> 04:12:56,484 Says I thank you so much both 7469 04:12:56,484 --> 04:12:57,218 to the auditors and 7470 04:12:57,218 --> 04:12:57,952 the Franchise Compliance Review 7471 04:12:57,952 --> 04:13:00,952 Committee for spending the time 7472 04:13:01,322 --> 04:13:01,990 to evaluate our work Under 7473 04:13:01,990 --> 04:13:02,657 the franchise agreements we 7474 04:13:02,657 --> 04:13:05,570 knowledge of the independent 7475 04:13:06,327 --> 04:13:06,928 auditor for the second year or 7476 04:13:06,928 --> 04:13:07,528 the second time found no 7477 04:13:07,528 --> 04:13:08,129 significant findings or 7478 04:13:08,129 --> 04:13:10,129 deficiencies relating to 7479 04:13:12,267 --> 04:13:12,867 performance on the franchise 7480 04:13:12,867 --> 04:13:13,601 and related agreements. 7481 04:13:13,601 --> 04:13:14,202 This reflects our commitment to 7482 04:13:14,202 --> 04:13:16,602 meetings and to meeting 7483 04:13:17,271 --> 04:13:17,905 the several hundred 7484 04:13:17,905 --> 04:13:18,539 requirements under each of 7485 04:13:18,539 --> 04:13:18,940 these ancillary franchise 7486 04:13:18,940 --> 04:13:19,607 agreements. 7487 04:13:19,607 --> 04:13:23,207 Of course we know we always 7488 04:13:23,512 --> 04:13:24,379 have to improve. 7489 04:13:24,379 --> 04:13:25,130 We'll continue to work on our 7490 04:13:25,130 --> 04:13:25,647 processes and we take that 7491 04:13:25,647 --> 04:13:27,647 responsibility seriously. 7492 04:13:29,650 --> 04:13:30,385 We'd also like to recognize 7493 04:13:30,385 --> 04:13:31,119 the Franchise Compliance Review 7494 04:13:31,119 --> 04:13:31,819 Committee for the time and care 7495 04:13:31,819 --> 04:13:34,819 they dedicated to this process 7496 04:13:35,290 --> 04:13:35,957 After their extensive review 7497 04:13:35,957 --> 04:13:36,524 including presentations from 7498 04:13:36,524 --> 04:13:38,524 subject matter experts 7499 04:13:41,496 --> 04:13:42,230 including the cpa and other 7500 04:13:42,230 --> 04:13:42,797 stakeholders in the community. 7501 04:13:42,797 --> 04:13:43,331 Your evaluation of our 7502 04:13:43,331 --> 04:13:44,650 performance and your 7503 04:13:44,650 --> 04:13:47,650 consideration of all the public 7504 04:13:47,969 --> 04:13:48,603 input. 7505 04:13:48,603 --> 04:13:49,237 Importantly, the committee 7506 04:13:49,237 --> 04:13:49,838 found that we demonstrated 7507 04:13:49,838 --> 04:13:50,538 overall compliance with 7508 04:13:50,538 --> 04:13:53,538 the electric and gas franchise 7509 04:13:54,709 --> 04:13:55,276 agreements as well as an mou. 7510 04:13:55,276 --> 04:13:55,710 Thank you very much. 7511 04:13:55,710 --> 04:13:56,111 All of you. 7512 04:13:56,111 --> 04:13:58,111 Thank you. 7513 04:14:00,815 --> 04:14:01,149 That concludes in-person public 7514 04:14:01,149 --> 04:14:01,916 comment. 7515 04:14:01,916 --> 04:14:02,383 We will now go to virtual 7516 04:14:02,383 --> 04:14:04,383 public comment. 7517 04:14:05,420 --> 04:14:06,121 I've started the five minute 7518 04:14:06,121 --> 04:14:06,788 timer in council chambers and 7519 04:14:06,788 --> 04:14:10,388 we will turn to the virtual 7520 04:14:11,793 --> 04:14:12,460 queue in which there are 7521 04:14:12,460 --> 04:14:12,994 currently three participants 7522 04:14:12,994 --> 04:14:13,662 requesting to speak. 7523 04:14:13,662 --> 04:14:16,662 We'll begin with John Stott. 7524 04:14:16,831 --> 04:14:18,831 Please begin. 7525 04:14:24,720 --> 04:14:25,373 >> Wow. 7526 04:14:25,373 --> 04:14:28,877 Did they get it a a p a c, a d 7527 04:14:28,877 --> 04:14:29,444 or an f? 7528 04:14:29,444 --> 04:14:30,145 Can't tell you No. 7529 04:14:30,145 --> 04:14:32,545 For $1 billion company you'd 7530 04:14:34,916 --> 04:14:35,650 expect an a-plus. 7531 04:14:35,650 --> 04:14:38,500 Second thing that's missing 7532 04:14:41,456 --> 04:14:42,324 here is how much did the city 7533 04:14:42,324 --> 04:14:46,524 or residents of the city of San 7534 04:14:47,929 --> 04:14:48,563 Diego have to pay in litigation 7535 04:14:48,563 --> 04:14:52,163 with f, c, g and e? 7536 04:14:52,801 --> 04:14:57,100 How much damages did they do on 7537 04:14:58,673 --> 04:14:59,307 the undergrounding You know, in 7538 04:14:59,307 --> 04:15:00,420 the valuation that we had 7539 04:15:00,420 --> 04:15:02,442 before the undergrounding Seems 7540 04:15:04,446 --> 04:15:05,113 like we have to pay three times 7541 04:15:05,113 --> 04:15:05,747 for the same undergrounding. 7542 04:15:05,747 --> 04:15:08,747 And for the lawyers there 7543 04:15:10,618 --> 04:15:11,520 amongst you the law fixtures 7544 04:15:11,520 --> 04:15:13,520 should apply. 7545 04:15:15,824 --> 04:15:16,324 This is not like San Francisco 7546 04:15:16,324 --> 04:15:16,991 in any way. 7547 04:15:16,991 --> 04:15:19,991 San Francisco is a takeover. 7548 04:15:21,997 --> 04:15:22,698 Ours would be an end of a 7549 04:15:22,698 --> 04:15:23,332 franchise or at least that we 7550 04:15:23,332 --> 04:15:23,765 get the law for next year. 7551 04:15:23,765 --> 04:15:25,765 >> Thank you. 7552 04:15:27,502 --> 04:15:27,903 Thank you. 7553 04:15:27,903 --> 04:15:28,670 All right. 7554 04:15:28,670 --> 04:15:32,270 Our next speaker is John Lear. 7555 04:15:32,908 --> 04:15:33,508 Please begin. 7556 04:15:33,508 --> 04:15:34,242 >> Good afternoon. 7557 04:15:34,242 --> 04:15:37,842 This has been a long one. 7558 04:15:39,314 --> 04:15:40,150 I just really wish I could get 7559 04:15:40,150 --> 04:15:40,716 a contract where when I screw 7560 04:15:40,716 --> 04:15:43,716 up with a major installation 7561 04:15:44,385 --> 04:15:45,870 like a nuclear power plant I 7562 04:15:45,870 --> 04:15:45,354 get to build the customers for 7563 04:15:45,354 --> 04:15:46,540 it. 7564 04:15:46,540 --> 04:15:49,540 I don't even begin to 7565 04:15:49,825 --> 04:15:50,492 understand this cost plus 7566 04:15:50,492 --> 04:15:51,260 billing that we live under. 7567 04:15:51,260 --> 04:15:55,130 I will tell you this Six months 7568 04:15:55,130 --> 04:15:55,898 ago I had solar installed on 7569 04:15:55,898 --> 04:15:56,565 the on the unit that I live in. 7570 04:15:56,565 --> 04:15:57,366 Unfortunately I've not been 7571 04:15:57,366 --> 04:16:00,966 able to take advantage of it 7572 04:16:01,637 --> 04:16:02,471 until the last two months. 7573 04:16:02,471 --> 04:16:03,205 But I will say this I generate 7574 04:16:03,205 --> 04:16:06,805 twice as about twice the amount 7575 04:16:07,242 --> 04:16:07,843 of power that I need in this 7576 04:16:07,843 --> 04:16:10,243 household on that solar. 7577 04:16:13,810 --> 04:16:13,749 So the rest of it goes back to 7578 04:16:13,749 --> 04:16:14,116 my neighbors and the people 7579 04:16:14,116 --> 04:16:14,817 around me. 7580 04:16:14,817 --> 04:16:17,619 Unfortunately I'm not able to 7581 04:16:17,619 --> 04:16:18,320 take advantage of the benefit 7582 04:16:18,320 --> 04:16:21,320 of the reduced billing because 7583 04:16:23,492 --> 04:16:24,226 for 3 or 4 months as the genie 7584 04:16:24,226 --> 04:16:27,596 could get people out to inspect 7585 04:16:27,596 --> 04:16:28,230 and approve and turn it on 7586 04:16:28,230 --> 04:16:28,931 which is just outrageous. 7587 04:16:28,931 --> 04:16:31,931 Anyway, get solar, get away 7588 04:16:34,360 --> 04:16:34,403 from the grid and get rid as 7589 04:16:34,403 --> 04:16:34,837 the genie. 7590 04:16:34,837 --> 04:16:35,204 >> Thank you. 7591 04:16:35,204 --> 04:16:37,204 Thank you. 7592 04:16:39,375 --> 04:16:40,900 Our next speaker is caller with 7593 04:16:40,900 --> 04:16:42,409 the last four digits 8700. 7594 04:16:44,480 --> 04:16:46,480 Please begin. 7595 04:16:51,530 --> 04:16:51,454 >> Thank you, Joy. 7596 04:16:51,454 --> 04:16:53,454 It's turn. 7597 04:16:56,580 --> 04:16:56,726 I don't support the renewal of 7598 04:16:56,726 --> 04:16:57,920 the fda and the franchise 7599 04:16:57,920 --> 04:16:59,920 agreement. 7600 04:17:01,300 --> 04:17:04,300 My reasons are mostly in 7601 04:17:05,668 --> 04:17:06,268 the last paragraph of 7602 04:17:06,268 --> 04:17:06,836 the PowerPoint entitled 7603 04:17:06,836 --> 04:17:09,236 Conclusion and I quote 7604 04:17:11,474 --> 04:17:12,174 Conditional renewal supports 7605 04:17:12,174 --> 04:17:15,174 rate payers in the city's 7606 04:17:16,779 --> 04:17:17,546 objectives. 7607 04:17:17,546 --> 04:17:18,214 At the same time, complaints 7608 04:17:18,214 --> 04:17:20,614 alone doesn't solve concerns 7609 04:17:22,485 --> 04:17:22,952 about affordability rates or 7610 04:17:22,952 --> 04:17:24,952 long term value. 7611 04:17:27,560 --> 04:17:27,589 Ultimately the Council must 7612 04:17:27,589 --> 04:17:28,291 weigh both technical 7613 04:17:28,291 --> 04:17:30,691 performance in broader public 7614 04:17:33,696 --> 04:17:34,230 benefit in deciding whether to 7615 04:17:34,230 --> 04:17:36,230 renew Dear Council. 7616 04:17:38,801 --> 04:17:39,335 Dear Mayor do not renew It does 7617 04:17:39,335 --> 04:17:41,335 not support repairs. 7618 04:17:44,106 --> 04:17:44,507 It does not support the city 7619 04:17:44,507 --> 04:17:45,700 objectives. 7620 04:17:45,700 --> 04:17:47,407 We all know that. 7621 04:17:49,512 --> 04:17:50,213 So let's be bold. 7622 04:17:50,213 --> 04:17:50,480 Let's have the courage to say 7623 04:17:50,480 --> 04:17:50,847 no. 7624 04:17:50,847 --> 04:17:52,847 Thank you. 7625 04:17:53,983 --> 04:17:54,454 That concludes your time This 7626 04:17:54,454 --> 04:17:54,817 morning. 7627 04:17:54,817 --> 04:17:55,184 Thank you. 7628 04:17:55,184 --> 04:17:57,184 Thank you. 7629 04:17:59,422 --> 04:17:59,922 That concludes public testimony 7630 04:17:59,922 --> 04:18:00,423 on item 201. 7631 04:18:00,423 --> 04:18:01,230 >> All right. 7632 04:18:01,230 --> 04:18:03,423 Thank you, Deputy Clerk. 7633 04:18:04,761 --> 04:18:05,495 With that this is an 7634 04:18:05,495 --> 04:18:05,862 information item and no motions 7635 04:18:05,862 --> 04:18:07,862 required. 7636 04:18:08,970 --> 04:18:08,898 I'll turn it over to council 7637 04:18:08,898 --> 04:18:12,498 members and jump in if nobody 7638 04:18:13,703 --> 04:18:14,470 else wants to. 7639 04:18:14,470 --> 04:18:15,238 So I will jump in. 7640 04:18:15,238 --> 04:18:18,838 Again, thank you to the members 7641 04:18:19,475 --> 04:18:19,842 of the franchise compliance 7642 04:18:19,842 --> 04:18:20,510 agreement. 7643 04:18:20,510 --> 04:18:20,777 I mean it's committee excuse 7644 04:18:20,777 --> 04:18:21,511 me. 7645 04:18:21,511 --> 04:18:24,347 It's an interesting animal that 7646 04:18:24,347 --> 04:18:24,981 we've created and we appreciate 7647 04:18:24,981 --> 04:18:25,882 your two year stint. 7648 04:18:25,882 --> 04:18:27,784 You know, if I can make a pitch 7649 04:18:27,784 --> 04:18:28,284 for you to come back and do 7650 04:18:28,284 --> 04:18:29,252 another two years. 7651 04:18:29,252 --> 04:18:32,188 i would be remiss if I did not 7652 04:18:32,188 --> 04:18:33,122 do that. 7653 04:18:33,122 --> 04:18:33,923 I want to speak to some of 7654 04:18:33,923 --> 04:18:37,523 the things that were raised by 7655 04:18:37,794 --> 04:18:38,561 the public. 7656 04:18:38,561 --> 04:18:39,162 We have new faces doing utility 7657 04:18:39,162 --> 04:18:41,162 undergrounding and our 7658 04:18:43,132 --> 04:18:43,766 transportation department and 7659 04:18:43,766 --> 04:18:46,166 they've done some serious 7660 04:18:47,971 --> 04:18:48,605 changes to that that when we do 7661 04:18:48,605 --> 04:18:49,305 the next two year review I 7662 04:18:49,305 --> 04:18:52,905 don't think we're going to see 7663 04:18:53,309 --> 04:18:53,909 those same problems because 7664 04:18:53,909 --> 04:18:54,611 they've gotten much more 7665 04:18:54,611 --> 04:18:57,611 aggressive not only with Genie 7666 04:18:57,914 --> 04:18:58,281 but also with at&t and 7667 04:18:58,281 --> 04:18:58,948 Spectrum, 7668 04:18:58,948 --> 04:19:00,948 the telecommunications that 7669 04:19:02,919 --> 04:19:03,686 also have aboveground lines. 7670 04:19:03,686 --> 04:19:07,286 So I'm it didn't surprise me 7671 04:19:07,857 --> 04:19:08,591 that there were some instances 7672 04:19:08,591 --> 04:19:11,591 where there were problems going 7673 04:19:13,663 --> 04:19:14,364 forward But new crew internally 7674 04:19:14,364 --> 04:19:14,631 the city is doing a fantastic 7675 04:19:14,631 --> 04:19:16,631 job. 7676 04:19:18,301 --> 04:19:18,902 So I don't think we'll see it 7677 04:19:18,902 --> 04:19:19,235 in the next audit We go 7678 04:19:19,235 --> 04:19:21,235 forward. 7679 04:19:23,730 --> 04:19:23,807 And to MR. Kozinski or Bob 7680 04:19:23,807 --> 04:19:26,807 because I always pronounce your 7681 04:19:27,811 --> 04:19:28,478 name wrong I did reach out to 7682 04:19:28,478 --> 04:19:29,112 the city auditor to actually 7683 04:19:29,112 --> 04:19:32,112 look into the latter part. 7684 04:19:32,215 --> 04:19:32,949 You think I don't do anything? 7685 04:19:32,949 --> 04:19:35,949 And the city auditor reported 7686 04:19:36,553 --> 04:19:37,254 that they have heard these 7687 04:19:37,254 --> 04:19:37,854 allegations multiple times and 7688 04:19:37,854 --> 04:19:39,854 quote Our investigations 7689 04:19:42,250 --> 04:19:42,726 determined that the allegations 7690 04:19:42,726 --> 04:19:43,326 of fraud, waste and abuse were 7691 04:19:43,326 --> 04:19:45,326 unsubstantiated and that 7692 04:19:47,497 --> 04:19:48,264 the qualification requirements 7693 04:19:48,264 --> 04:19:48,865 for him claiming that the clerk 7694 04:19:48,865 --> 04:19:50,865 report were reasonable. 7695 04:19:51,434 --> 04:19:51,868 That comes from our independent 7696 04:19:51,868 --> 04:19:52,635 city auditor. 7697 04:19:52,635 --> 04:19:55,906 Take that for what it's worth. 7698 04:19:55,906 --> 04:19:56,606 But again thank you to 7699 04:19:56,606 --> 04:19:57,340 the auditors for the good work 7700 04:19:57,340 --> 04:20:00,940 that you do under the franchise 7701 04:20:01,344 --> 04:20:02,112 agreement. 7702 04:20:02,112 --> 04:20:02,612 Thank you again for the good 7703 04:20:02,612 --> 04:20:03,313 work that you do. 7704 04:20:03,313 --> 04:20:06,313 And then again the volunteers 7705 04:20:06,717 --> 04:20:07,317 who stepped up for 7706 04:20:07,317 --> 04:20:07,751 the committee very much 7707 04:20:07,751 --> 04:20:08,485 appreciate it. 7708 04:20:08,485 --> 04:20:10,921 With that we will go to council 7709 04:20:10,921 --> 04:20:11,421 member Eli Rivera. 7710 04:20:11,421 --> 04:20:11,788 >> All right. 7711 04:20:11,788 --> 04:20:12,489 Thank you. 7712 04:20:12,489 --> 04:20:15,489 Council PRESIDENT I just wanna 7713 04:20:15,592 --> 04:20:16,459 say thank you. 7714 04:20:16,459 --> 04:20:17,160 It's a ton of time and effort 7715 04:20:17,160 --> 04:20:20,160 that goes into this volunteer 7716 04:20:20,631 --> 04:20:21,398 work that you do and it is 7717 04:20:21,398 --> 04:20:24,398 important and is one of 7718 04:20:24,935 --> 04:20:25,636 the things that distinguishes 7719 04:20:25,636 --> 04:20:28,636 the way that we've approached 7720 04:20:30,340 --> 04:20:30,941 our our relationship ship with 7721 04:20:30,941 --> 04:20:31,507 Jeannie um and with this 7722 04:20:31,507 --> 04:20:33,507 franchise agreement in 7723 04:20:35,479 --> 04:20:35,979 comparison to what had been 7724 04:20:35,979 --> 04:20:36,680 done in the past. 7725 04:20:36,680 --> 04:20:39,583 I think that that positions us 7726 04:20:39,583 --> 04:20:40,317 better for the future and I'm 7727 04:20:40,317 --> 04:20:40,951 very grateful for the work that 7728 04:20:40,951 --> 04:20:41,385 you do to help us do that. 7729 04:20:41,385 --> 04:20:41,885 >> Thank you. 7730 04:20:41,885 --> 04:20:43,885 Council PRESIDENT. 7731 04:20:44,288 --> 04:20:44,655 All right. 7732 04:20:44,655 --> 04:20:45,289 Thank you. 7733 04:20:45,289 --> 04:20:45,856 Council Yellow Rivera Not 7734 04:20:45,856 --> 04:20:46,256 seeing anybody else in 7735 04:20:46,256 --> 04:20:48,256 the lights. 7736 04:20:49,793 --> 04:20:50,460 I will close this item up And 7737 04:20:50,460 --> 04:20:52,296 again thank you for the good 7738 04:20:52,296 --> 04:20:55,896 work and your patience on a 7739 04:20:57,667 --> 04:20:59,667 long afternoon. 7740 04:21:01,905 --> 04:21:02,773 Okay. 7741 04:21:02,773 --> 04:21:05,509 And with that deputy clerk 7742 04:21:05,509 --> 04:21:07,909 please introduce item 203 Thank 7743 04:21:09,680 --> 04:21:10,347 you, Council PRESIDENT Item 2 7744 04:21:10,347 --> 04:21:11,810 or 3 approval of a Fifth 7745 04:21:11,810 --> 04:21:14,810 Amendment to the agreement with 7746 04:21:14,184 --> 04:21:14,918 Path of San Diego for 7747 04:21:14,918 --> 04:21:15,252 the Coordinated Street Outreach 7748 04:21:15,252 --> 04:21:15,686 Program. 7749 04:21:15,686 --> 04:21:17,686 >> All right. 7750 04:21:19,924 --> 04:21:20,724 Thank you for that. 7751 04:21:20,724 --> 04:21:21,910 This is a Fifth Amendment to an 7752 04:21:21,910 --> 04:21:21,992 agreement. 7753 04:21:21,992 --> 04:21:24,361 It's a little bit of a holdover 7754 04:21:24,361 --> 04:21:25,620 Would you guys be okay with 7755 04:21:25,620 --> 04:21:27,462 waiving the presentation given 7756 04:21:28,565 --> 04:21:28,933 that this is the Fifth 7757 04:21:28,933 --> 04:21:30,933 Amendment? 7758 04:21:33,304 --> 04:21:34,380 All right, So settle yourselves 7759 04:21:34,380 --> 04:21:37,380 in and Deputy clerk proceed 7760 04:21:40,978 --> 04:21:41,283 with public comment on item 203 7761 04:21:41,283 --> 04:21:41,678 . 7762 04:21:41,678 --> 04:21:42,412 Thank you. 7763 04:21:42,412 --> 04:21:45,412 Council PRESIDENT We will begin 7764 04:21:46,116 --> 04:21:46,817 with an in-person comment 7765 04:21:46,817 --> 04:21:47,151 allegedly Order a please come 7766 04:21:47,151 --> 04:21:49,151 forward. 7767 04:21:59,129 --> 04:22:00,840 You'll have one minute to speak 7768 04:22:00,840 --> 04:22:01,191 And again you guys want to get 7769 04:22:01,191 --> 04:22:02,172 out of here. 7770 04:22:02,172 --> 04:22:03,634 But again the presentations 7771 04:22:03,634 --> 04:22:04,580 aren't for you guys. 7772 04:22:04,580 --> 04:22:05,598 It's also for the people. 7773 04:22:05,598 --> 04:22:07,598 All right. 7774 04:22:08,608 --> 04:22:09,671 So this is interesting because 7775 04:22:09,671 --> 04:22:12,710 you know, homelessness is 7776 04:22:13,444 --> 04:22:14,340 running rampant though It's 7777 04:22:14,340 --> 04:22:15,463 good for business when it is 7778 04:22:15,463 --> 04:22:17,463 it's fantastic. 7779 04:22:18,683 --> 04:22:19,574 There's so much money to be 7780 04:22:19,574 --> 04:22:20,419 made off of these people And 7781 04:22:20,419 --> 04:22:23,721 I'm wondering how good are they 7782 04:22:23,721 --> 04:22:24,455 doing if just right outside 7783 04:22:24,455 --> 04:22:27,455 the doors here there's homeless 7784 04:22:28,492 --> 04:22:29,327 people sleeping every night. 7785 04:22:29,327 --> 04:22:33,397 So I mean is that money well 7786 04:22:33,397 --> 04:22:34,436 spent And when there is no, you 7787 04:22:34,436 --> 04:22:37,436 know, path to another shelter 7788 04:22:38,536 --> 04:22:39,508 or you know, some kind of home 7789 04:22:39,508 --> 04:22:42,707 for like a hamster wheel and we 7790 04:22:42,707 --> 04:22:43,474 just keep going around. 7791 04:22:43,474 --> 04:22:44,141 It's like let's give more money 7792 04:22:44,141 --> 04:22:44,408 and maybe that will help fix 7793 04:22:44,408 --> 04:22:46,408 it. 7794 04:22:47,440 --> 04:22:47,945 No, we don't have anywhere for 7795 04:22:47,945 --> 04:22:48,646 them to go But we have these 7796 04:22:48,646 --> 04:22:51,646 people out there just telling 7797 04:22:52,483 --> 04:22:53,384 people, you know, that there's 7798 04:22:53,384 --> 04:22:54,850 nowhere for them to go but then 7799 04:22:54,850 --> 04:22:57,685 we're going to arrest them or 7800 04:22:57,755 --> 04:22:58,389 take their stuff, you know, 7801 04:22:58,389 --> 04:22:59,900 because they're out there. 7802 04:22:59,900 --> 04:22:59,357 So it seems like it's working 7803 04:22:59,357 --> 04:23:01,357 out. 7804 04:23:02,393 --> 04:23:03,930 Maybe you guys could get some 7805 04:23:03,930 --> 04:23:03,628 more money and throw it at it. 7806 04:23:03,628 --> 04:23:05,628 >> Thank you. 7807 04:23:06,731 --> 04:23:07,398 That concludes your time. 7808 04:23:07,398 --> 04:23:08,990 Our next speaker is Blair 7809 04:23:08,990 --> 04:23:10,499 Beekman followed by Anthony 7810 04:23:11,969 --> 04:23:12,470 Ralphs. 7811 04:23:12,470 --> 04:23:14,470 Hi, we're Beekman. 7812 04:23:16,874 --> 04:23:17,742 I'm filling improving today I 7813 04:23:17,742 --> 04:23:21,342 guess my my knowledge and depth 7814 04:23:21,512 --> 04:23:24,512 of community issues is pretty 7815 04:23:25,850 --> 04:23:26,551 feeble but gosh darn it this is 7816 04:23:26,551 --> 04:23:27,218 an item that I think really 7817 04:23:27,218 --> 04:23:29,618 needs a public presentation. 7818 04:23:32,560 --> 04:23:35,590 I'm the work that does for our 7819 04:23:35,590 --> 04:23:35,693 unhoused has been incredible 7820 04:23:35,693 --> 04:23:35,994 especially in the past few 7821 04:23:35,994 --> 04:23:36,661 years. 7822 04:23:36,661 --> 04:23:39,661 They've proven how much they 7823 04:23:39,697 --> 04:23:40,431 can house people and we don't 7824 04:23:40,431 --> 04:23:41,650 just talk about shelters we can 7825 04:23:41,650 --> 04:23:41,532 actually be talking about 7826 04:23:41,532 --> 04:23:43,532 housing issues. 7827 04:23:44,936 --> 04:23:45,837 I really ask the council to if 7828 04:23:45,837 --> 04:23:49,407 they can you know, be asking 7829 04:23:49,407 --> 04:23:50,108 questions after public 7830 04:23:50,108 --> 04:23:50,809 presentation and that they can 7831 04:23:50,809 --> 04:23:53,209 still make their presentation 7832 04:23:54,279 --> 04:23:54,946 that would be great too. 7833 04:23:54,946 --> 04:23:57,946 It's really important to be 7834 04:23:58,549 --> 04:23:59,284 hearing this item and I'm 7835 04:23:59,284 --> 04:24:01,684 really surprised we're avoiding 7836 04:24:02,820 --> 04:24:07,200 it out of efficiency and to get 7837 04:24:07,625 --> 04:24:08,326 home early. 7838 04:24:08,326 --> 04:24:09,160 This is an important step. 7839 04:24:09,160 --> 04:24:11,960 I hope we make this step more 7840 04:24:11,960 --> 04:24:11,429 open and clear in our public 7841 04:24:11,429 --> 04:24:12,897 future. 7842 04:24:12,897 --> 04:24:14,897 >> Thank you. 7843 04:24:18,837 --> 04:24:21,237 Anthony Ralphs Good afternoon 7844 04:24:23,375 --> 04:24:23,975 City Council Excuse me I 7845 04:24:23,975 --> 04:24:24,542 support the approval of 7846 04:24:24,542 --> 04:24:26,942 the Fifth Amendment to 7847 04:24:28,460 --> 04:24:28,546 the agreement with the path San 7848 04:24:28,546 --> 04:24:29,280 Diego Program for 7849 04:24:29,280 --> 04:24:31,680 the Coordinated Street Outreach 7850 04:24:32,651 --> 04:24:33,485 Program. 7851 04:24:33,485 --> 04:24:34,185 At a time when we've seen so 7852 04:24:34,185 --> 04:24:37,185 many of our homeless programs 7853 04:24:37,656 --> 04:24:38,356 and outreach programs cut 7854 04:24:38,356 --> 04:24:40,756 particularly the Alpha project 7855 04:24:42,994 --> 04:24:46,594 particularly I believe it was I 7856 04:24:46,865 --> 04:24:47,631 forget the good the good center 7857 04:24:47,631 --> 04:24:47,933 I'm blanking on the full name 7858 04:24:47,933 --> 04:24:48,700 of it. 7859 04:24:48,700 --> 04:24:51,770 But anyway we've had so many 7860 04:24:51,770 --> 04:24:52,437 homeless programs cut and this 7861 04:24:52,437 --> 04:24:53,505 is a matter of public safety 7862 04:24:53,505 --> 04:24:56,708 and I know how quick all are to 7863 04:24:56,708 --> 04:24:57,676 defend public safety. 7864 04:24:57,676 --> 04:25:01,746 So I would expect that we could 7865 04:25:01,746 --> 04:25:02,347 have that same approach with 7866 04:25:02,347 --> 04:25:03,810 our homeless, that same 7867 04:25:03,810 --> 04:25:06,810 compassion and empathy and that 7868 04:25:06,417 --> 04:25:07,118 these programs can pan out and 7869 04:25:07,118 --> 04:25:07,619 help the people that they are 7870 04:25:07,619 --> 04:25:09,619 intended to serve. 7871 04:25:10,722 --> 04:25:11,123 Thank you. 7872 04:25:11,123 --> 04:25:13,123 Thank you. 7873 04:25:15,793 --> 04:25:16,128 That concludes in-person public 7874 04:25:16,128 --> 04:25:16,795 comment. 7875 04:25:16,795 --> 04:25:17,462 I've started the five minute 7876 04:25:17,462 --> 04:25:19,862 timer and council chambers. 7877 04:25:20,766 --> 04:25:21,366 We will now turn to the virtual 7878 04:25:21,366 --> 04:25:22,340 queue in which there are 7879 04:25:22,340 --> 04:25:24,340 currently three participants 7880 04:25:25,470 --> 04:25:27,470 requesting to speak. 7881 04:25:29,707 --> 04:25:30,375 We will begin with color with 7882 04:25:30,375 --> 04:25:32,775 the last four digits 8700 7883 04:25:39,318 --> 04:25:40,285 Please begin and thank you Joy 7884 04:25:40,285 --> 04:25:43,885 Senator Yes I support this item 7885 04:25:44,723 --> 04:25:45,424 passed. 7886 04:25:45,424 --> 04:25:45,991 It is absolutely fabulous. 7887 04:25:45,991 --> 04:25:48,391 I don't have personal 7888 04:25:49,561 --> 04:25:50,228 experience with them but I had 7889 04:25:50,228 --> 04:25:50,929 a wonderful experience with 7890 04:25:50,929 --> 04:25:53,929 the homeless couple years ago 7891 04:25:54,265 --> 04:25:54,966 when I moved here and I 7892 04:25:54,966 --> 04:25:57,366 followed their experience with 7893 04:25:58,937 --> 04:25:59,571 past and how they helped them 7894 04:25:59,571 --> 04:26:02,571 and it was very beautiful. 7895 04:26:03,942 --> 04:26:04,709 The only concern I have for 7896 04:26:04,709 --> 04:26:05,410 Path it seems like a few years 7897 04:26:05,410 --> 04:26:08,410 ago they were having trouble 7898 04:26:08,446 --> 04:26:09,214 with really paying their people 7899 04:26:09,214 --> 04:26:12,814 enough to work and perhaps they 7900 04:26:12,985 --> 04:26:13,685 were having trouble filling 7901 04:26:13,685 --> 04:26:14,553 positions that could have been 7902 04:26:14,553 --> 04:26:17,890 corrected And I MAY be way off 7903 04:26:17,890 --> 04:26:18,590 base on that but that just 7904 04:26:18,590 --> 04:26:19,224 popped up when I thought about 7905 04:26:19,224 --> 04:26:22,824 what I was going to say. 7906 04:26:23,620 --> 04:26:23,929 So love path just support them 7907 04:26:23,929 --> 04:26:27,529 wherever we can and love you 7908 04:26:28,467 --> 04:26:29,168 Path for what you do for 7909 04:26:29,168 --> 04:26:31,903 the homeless and that affects 7910 04:26:31,903 --> 04:26:32,303 all of San Diego Love to all 7911 04:26:32,303 --> 04:26:32,905 Thank you. 7912 04:26:32,905 --> 04:26:35,305 Next is Natalie Roski. 7913 04:26:36,942 --> 04:26:37,509 Please begin. 7914 04:26:37,509 --> 04:26:39,509 >> Hi Natalie. 7915 04:26:42,314 --> 04:26:42,982 Rush here District seven. 7916 04:26:42,982 --> 04:26:43,716 So I've been doing some 7917 04:26:43,716 --> 04:26:46,716 research and I'm really getting 7918 04:26:47,253 --> 04:26:47,953 good at my research I think so 7919 04:26:47,953 --> 04:26:51,323 I'm kind of confused on what 7920 04:26:51,323 --> 04:26:52,124 I'm researching and what this 7921 04:26:52,124 --> 04:26:55,124 path San Diego Fifth Amendment 7922 04:26:56,295 --> 04:26:59,295 means because it's telling me 7923 04:27:00,332 --> 04:27:01,133 that the resolution before it 7924 04:27:01,133 --> 04:27:04,133 describes this routine one year 7925 04:27:04,737 --> 04:27:05,271 extension flat funding at 13.6 7926 04:27:05,271 --> 04:27:05,905 million and change. 7927 04:27:05,905 --> 04:27:08,305 But there's an underlining 7928 04:27:09,975 --> 04:27:10,676 amendment does something that 7929 04:27:10,676 --> 04:27:11,210 the resolution never mentions 7930 04:27:11,210 --> 04:27:14,210 It adds a new clause 7931 04:27:15,614 --> 04:27:16,649 acknowledge is that h m c. 7932 04:27:16,649 --> 04:27:19,952 S and c I e the data systems 7933 04:27:19,952 --> 04:27:20,686 used to track and house 7934 04:27:20,686 --> 04:27:23,860 residents are some surveillance 7935 04:27:24,156 --> 04:27:24,523 technology under the trust 7936 04:27:24,523 --> 04:27:26,523 ordinance. 7937 04:27:29,161 --> 04:27:29,929 So moving forward and improving 7938 04:27:29,929 --> 04:27:32,929 are these systems being used 7939 04:27:33,999 --> 04:27:34,667 currently? 7940 04:27:34,667 --> 04:27:36,667 Is there understanding 7941 04:27:38,871 --> 04:27:39,572 the grace period and is this 7942 04:27:39,572 --> 04:27:42,572 being acknowledged or is this 7943 04:27:43,609 --> 04:27:44,420 was known about is it 7944 04:27:44,420 --> 04:27:44,410 the question? 7945 04:27:44,410 --> 04:27:46,410 Thank you. 7946 04:27:48,748 --> 04:27:49,415 That does conclude your time. 7947 04:27:49,415 --> 04:27:52,415 Next speaker is John Leah. 7948 04:27:52,885 --> 04:27:53,352 Please begin. 7949 04:27:53,352 --> 04:27:55,352 Good afternoon. 7950 04:27:57,523 --> 04:27:58,491 Council members. 7951 04:27:58,491 --> 04:27:59,458 It's been a long one but I did 7952 04:27:59,458 --> 04:28:03,658 want to make time to update you 7953 04:28:03,796 --> 04:28:04,463 that I actually that 7954 04:28:04,463 --> 04:28:06,799 the individual that came out 7955 04:28:06,799 --> 04:28:07,567 front of city Council in my rv 7956 04:28:07,567 --> 04:28:11,767 for a period of time I'm not 7957 04:28:12,400 --> 04:28:12,671 sure where ultimately that 7958 04:28:12,671 --> 04:28:13,339 situation is resolved but I 7959 04:28:13,339 --> 04:28:16,676 will tell you that we've run 7960 04:28:16,676 --> 04:28:17,443 into these cases all the time. 7961 04:28:17,443 --> 04:28:17,810 I love that they're an amazing 7962 04:28:17,810 --> 04:28:19,810 provider. 7963 04:28:22,181 --> 04:28:22,782 We have had nothing but a high 7964 04:28:22,782 --> 04:28:23,116 regard for much of their 7965 04:28:23,116 --> 04:28:23,750 service. 7966 04:28:23,750 --> 04:28:26,519 So this is not necessarily 7967 04:28:26,519 --> 04:28:27,253 related to path but we do not 7968 04:28:27,253 --> 04:28:30,690 have a mechanism for people who 7969 04:28:30,690 --> 04:28:31,357 are struggling and falling 7970 04:28:31,357 --> 04:28:32,580 through the cracks to raise 7971 04:28:32,580 --> 04:28:35,561 their hand and go Hey, what's 7972 04:28:35,561 --> 04:28:36,529 going on? 7973 04:28:36,529 --> 04:28:37,230 And I don't think that we are 7974 04:28:37,230 --> 04:28:40,230 capturing the number of people 7975 04:28:40,533 --> 04:28:43,533 that are returning to our 7976 04:28:44,770 --> 04:28:45,538 system effectively because 7977 04:28:45,538 --> 04:28:46,239 after two years if you come 7978 04:28:46,239 --> 04:28:49,750 back into the system are hmas 7979 04:28:49,750 --> 04:28:49,776 recognize here is a brand new 7980 04:28:49,776 --> 04:28:53,179 person anyway we need to be 7981 04:28:53,179 --> 04:28:53,913 listening to our customers. 7982 04:28:53,913 --> 04:28:54,614 We're still not and I would 7983 04:28:54,614 --> 04:28:54,981 hope that we could take that 7984 04:28:54,981 --> 04:28:56,981 seriously. 7985 04:28:57,717 --> 04:28:58,217 Thank you. 7986 04:28:58,217 --> 04:28:58,851 Thank you. 7987 04:28:58,851 --> 04:29:01,251 That does conclude public 7988 04:29:03,560 --> 04:29:03,556 comment on item 203. 7989 04:29:03,556 --> 04:29:04,157 All right. 7990 04:29:04,157 --> 04:29:06,557 Thank you, Deputy Clerk. 7991 04:29:07,827 --> 04:29:08,561 This is an item for discussion 7992 04:29:08,561 --> 04:29:11,597 and we will need a motion. 7993 04:29:11,597 --> 04:29:12,265 So we'll turn over first to 7994 04:29:12,265 --> 04:29:14,665 Council member Whipper Thank 7995 04:29:15,768 --> 04:29:16,402 you Council PRESIDENT I will 7996 04:29:16,402 --> 04:29:17,360 make the motion to approve 7997 04:29:17,360 --> 04:29:19,360 the staff recommendation. 7998 04:29:21,107 --> 04:29:21,808 This presentation is online. 7999 04:29:21,808 --> 04:29:24,208 Both the PowerPoint and 8000 04:29:25,845 --> 04:29:26,545 the staff report are on line 8001 04:29:26,545 --> 04:29:27,147 for everybody to access and 8002 04:29:27,147 --> 04:29:29,547 they've been online for 8003 04:29:30,650 --> 04:29:31,170 everybody to access for several 8004 04:29:31,170 --> 04:29:33,170 days now. 8005 04:29:35,755 --> 04:29:36,189 This does not add more money to 8006 04:29:36,189 --> 04:29:38,189 the contract. 8007 04:29:40,593 --> 04:29:41,270 It extends the term of 8008 04:29:41,270 --> 04:29:41,694 the contract. 8009 04:29:41,694 --> 04:29:44,694 These response teams that I 8010 04:29:45,565 --> 04:29:46,232 have has out there assess 8011 04:29:46,232 --> 04:29:48,632 people who are experiencing 8012 04:29:50,670 --> 04:29:51,438 homelessness and have helped 8013 04:29:51,438 --> 04:29:55,380 hundreds of people not just get 8014 04:29:55,608 --> 04:29:56,209 into emergency shelters but 8015 04:29:56,209 --> 04:29:58,609 also into housing both 8016 04:30:00,247 --> 04:30:00,580 temporary and permanent 8017 04:30:00,580 --> 04:30:01,214 housing. 8018 04:30:01,214 --> 04:30:01,948 And that's very important 8019 04:30:01,948 --> 04:30:04,948 because I am deeply concerned 8020 04:30:05,850 --> 04:30:05,585 about the unavailability of 8021 04:30:05,585 --> 04:30:07,585 emergency shelter. 8022 04:30:10,457 --> 04:30:14,657 We need more shelter beds to be 8023 04:30:14,728 --> 04:30:15,595 available to people. 8024 04:30:15,595 --> 04:30:19,566 But the good news is that path 8025 04:30:19,566 --> 04:30:20,233 is also directing people to 8026 04:30:20,233 --> 04:30:23,833 housing And as long as we're 8027 04:30:24,871 --> 04:30:25,505 getting people off the streets 8028 04:30:25,505 --> 04:30:26,390 and directly into housing, 8029 04:30:26,390 --> 04:30:26,673 that's a good thing. 8030 04:30:26,673 --> 04:30:29,760 One of the most important 8031 04:30:29,760 --> 04:30:29,743 things we could be doing and I 8032 04:30:29,743 --> 04:30:30,210 will approve move the staff 8033 04:30:30,210 --> 04:30:32,210 recommendation. 8034 04:30:34,470 --> 04:30:34,514 All right. 8035 04:30:34,514 --> 04:30:35,348 Thank you, sir. 8036 04:30:35,348 --> 04:30:36,170 So we have a motion by council 8037 04:30:36,170 --> 04:30:36,717 member Whipper and we'll go 8038 04:30:36,717 --> 04:30:39,520 next to Council PRESIDENT Pro 8039 04:30:39,520 --> 04:30:39,786 Tem Lee. 8040 04:30:39,786 --> 04:30:40,454 Thank you Council PRESIDENT And 8041 04:30:40,454 --> 04:30:41,540 thank you to path for their 8042 04:30:41,540 --> 04:30:43,454 continued work as well. 8043 04:30:43,523 --> 04:30:44,391 I'll second this motion. 8044 04:30:44,391 --> 04:30:45,125 >> All right so we have a 8045 04:30:45,125 --> 04:30:46,592 motion by Councilmember Whipper 8046 04:30:46,592 --> 04:30:47,294 and a second by Council 8047 04:30:47,294 --> 04:30:47,928 PRESIDENT Pro Tem Lee to move 8048 04:30:47,928 --> 04:30:49,928 the staff recommendation. 8049 04:30:51,765 --> 04:30:52,499 I see Council member John 8050 04:30:52,499 --> 04:30:55,869 Wolpert sup Thank you very much 8051 04:30:55,869 --> 04:30:56,536 and thank you for all the work 8052 04:30:56,536 --> 04:30:57,370 that path does as well. 8053 04:30:57,370 --> 04:30:57,771 I appreciate it. 8054 04:30:57,771 --> 04:31:00,771 I know that does increase 8055 04:31:01,475 --> 04:31:02,109 the amount of the contract but 8056 04:31:02,109 --> 04:31:02,809 it is the Fifth Amendment. 8057 04:31:02,809 --> 04:31:03,577 So are we thinking about doing 8058 04:31:03,577 --> 04:31:05,880 another rfp at some point or a 8059 04:31:05,880 --> 04:31:06,246 new scope of services or what's 8060 04:31:06,246 --> 04:31:06,980 the plan? 8061 04:31:06,980 --> 04:31:10,350 We released the rfp in APRIL of 8062 04:31:10,350 --> 04:31:11,840 this year so we intend to 8063 04:31:11,840 --> 04:31:14,684 fulfill the awardees of the rfp 8064 04:31:15,656 --> 04:31:16,356 in this next fiscal year and 8065 04:31:16,356 --> 04:31:16,723 that will then supersede this 8066 04:31:16,723 --> 04:31:17,240 contract. 8067 04:31:17,240 --> 04:31:17,391 Okay. 8068 04:31:17,391 --> 04:31:19,391 All right. 8069 04:31:20,961 --> 04:31:21,662 Thank you very much. 8070 04:31:21,662 --> 04:31:22,362 And Sara, could you introduce 8071 04:31:22,362 --> 04:31:22,896 yourself for the record since 8072 04:31:22,896 --> 04:31:23,197 you did a response? 8073 04:31:23,197 --> 04:31:25,197 Sorry. 8074 04:31:25,365 --> 04:31:26,330 Third Dorman, director of 8075 04:31:26,330 --> 04:31:26,733 Homelessness Strategies and 8076 04:31:26,733 --> 04:31:27,434 Solutions Deanna would be very 8077 04:31:27,434 --> 04:31:30,604 mad at me if I didn't get that 8078 04:31:30,604 --> 04:31:31,238 done All right, I I don't see 8079 04:31:31,238 --> 04:31:32,172 anybody else in the light. 8080 04:31:32,172 --> 04:31:36,310 I'll just add my Thank you for 8081 04:31:36,310 --> 04:31:38,512 managing that And to the folks 8082 04:31:38,512 --> 04:31:39,146 at path we have a motion by 8083 04:31:39,146 --> 04:31:39,880 Councilmember Lipper and a 8084 04:31:39,880 --> 04:31:40,514 second by Council PRESIDENT Pro 8085 04:31:40,514 --> 04:31:43,417 Tem Lee to move the staff 8086 04:31:43,417 --> 04:31:44,840 recommendation please call 8087 04:31:44,840 --> 04:31:44,718 the roll Deputy Clerk I have 8088 04:31:44,718 --> 04:31:47,718 set up the voting system. 8089 04:31:57,330 --> 04:31:59,730 Please cast your vote. 8090 04:32:01,402 --> 04:32:02,102 The item passes unanimously 8091 04:32:02,102 --> 04:32:02,536 with District two and District 8092 04:32:02,536 --> 04:32:02,970 eight absent. 8093 04:32:02,970 --> 04:32:04,970 >> All right. 8094 04:32:06,206 --> 04:32:06,907 And for meeting management 8095 04:32:06,907 --> 04:32:07,841 the reason we did that was to 8096 04:32:07,841 --> 04:32:11,450 make sure that we have a quorum 8097 04:32:11,450 --> 04:32:11,679 when it comes to not agenda 8098 04:32:11,679 --> 04:32:12,413 public comment at the end. 8099 04:32:12,413 --> 04:32:15,413 So for those that might 8100 04:32:15,515 --> 04:32:15,816 participate remotely stay 8101 04:32:15,816 --> 04:32:16,717 tuned. 8102 04:32:16,717 --> 04:32:21,540 We MAY or MAY not have a quorum 8103 04:32:21,540 --> 04:32:21,622 to have remote not a agenda 8104 04:32:21,622 --> 04:32:22,322 public comment We will 8105 04:32:22,322 --> 04:32:25,322 definitely do it for in-person 8106 04:32:25,693 --> 04:32:26,360 non agenda Public comment 8107 04:32:26,360 --> 04:32:28,760 meeting Management All right 8108 04:32:30,765 --> 04:32:33,165 Deputy Clerk please introduce 8109 04:32:34,680 --> 04:32:34,602 item 202 Thank you Council 8110 04:32:34,602 --> 04:32:35,269 PRESIDENT Item 2o2 8111 04:32:35,269 --> 04:32:37,669 Establishment of a cannabis 8112 04:32:38,506 --> 04:32:39,206 Delivery Services business 8113 04:32:39,206 --> 04:32:41,606 permit and enhanced commercial 8114 04:32:43,711 --> 04:32:44,440 cannabis enforcement mechanisms 8115 04:32:44,440 --> 04:32:44,445 . 8116 04:32:44,445 --> 04:32:45,146 All right. 8117 04:32:45,146 --> 04:32:45,613 I believe this is coming from 8118 04:32:45,613 --> 04:32:47,613 district seven. 8119 04:32:48,816 --> 04:32:49,583 So Councilmember Camp here do 8120 04:32:49,583 --> 04:32:49,917 you want to have some opening 8121 04:32:49,917 --> 04:32:50,284 remarks? 8122 04:32:50,284 --> 04:32:50,951 Thank you. 8123 04:32:50,951 --> 04:32:51,252 Counsel turn it over to your 8124 04:32:51,252 --> 04:32:51,519 staff. 8125 04:32:51,519 --> 04:32:52,186 Yes. 8126 04:32:52,186 --> 04:32:53,321 Council PRESIDENT, thank you 8127 04:32:53,321 --> 04:32:54,880 very much for that. 8128 04:32:54,880 --> 04:32:54,755 And before we begin with 8129 04:32:54,755 --> 04:32:55,356 the staff presentation, I'd 8130 04:32:55,356 --> 04:32:57,692 like to take a moment to 8131 04:32:57,692 --> 04:32:58,392 recognize the amount of work 8132 04:32:58,392 --> 04:32:59,590 that's gone in today's action 8133 04:32:59,590 --> 04:32:59,827 over the past two years not 8134 04:32:59,827 --> 04:33:02,596 only from my office but from 8135 04:33:02,596 --> 04:33:03,330 the mayor's office and cannabis 8136 04:33:03,330 --> 04:33:03,998 workers and businesses, members 8137 04:33:03,998 --> 04:33:06,998 of the public who've engaged 8138 04:33:07,168 --> 04:33:07,501 with us throughout this 8139 04:33:07,501 --> 04:33:08,201 process. 8140 04:33:08,201 --> 04:33:11,201 Cannabis delivery is a complex 8141 04:33:11,371 --> 04:33:11,972 policy issue and the item we 8142 04:33:11,972 --> 04:33:12,707 are putting forward for 8143 04:33:12,707 --> 04:33:13,441 consideration today is one that 8144 04:33:13,441 --> 04:33:15,841 puts accountability, safety and 8145 04:33:17,440 --> 04:33:17,979 workers first. 8146 04:33:17,979 --> 04:33:18,679 So with that I'll turn over to 8147 04:33:18,679 --> 04:33:21,790 Summer Patten, Deputy director 8148 04:33:21,582 --> 04:33:22,830 of policy for my office for 8149 04:33:22,830 --> 04:33:22,516 the presentation. 8150 04:33:22,516 --> 04:33:23,217 >> Thank you. 8151 04:33:23,217 --> 04:33:26,217 i need ten minutes for 8152 04:33:26,387 --> 04:33:26,687 the presentation when you're 8153 04:33:26,687 --> 04:33:27,188 ready. 8154 04:33:27,188 --> 04:33:27,855 >> Good afternoon. 8155 04:33:27,855 --> 04:33:30,255 Council PRESIDENT Lacob and 8156 04:33:31,558 --> 04:33:32,159 council members I'm presenting 8157 04:33:32,159 --> 04:33:32,693 here today on behalf of 8158 04:33:32,693 --> 04:33:33,427 Councilmember Campo 8159 04:33:33,427 --> 04:33:35,896 the establishment of a cannabis 8160 04:33:35,896 --> 04:33:36,597 delivery services business 8161 04:33:36,597 --> 04:33:38,997 permit and enhanced commercial 8162 04:33:40,268 --> 04:33:40,601 cannabis enforcement mechanisms 8163 04:33:40,601 --> 04:33:41,402 . 8164 04:33:41,402 --> 04:33:43,802 >> The proposed actions today 8165 04:33:45,439 --> 04:33:46,400 are to establish a cannabis 8166 04:33:46,400 --> 04:33:46,641 delivery business permit 8167 04:33:46,641 --> 04:33:48,641 category for commercial 8168 04:33:49,844 --> 04:33:50,511 cannabis operators entering 8169 04:33:50,511 --> 04:33:51,145 the city of San Diego to 8170 04:33:51,145 --> 04:33:53,145 conduct cannabis delivery. 8171 04:33:55,716 --> 04:33:56,284 I'm sorry, can you hold on? 8172 04:33:56,284 --> 04:33:56,684 We're not displaying. 8173 04:33:56,684 --> 04:33:56,985 There we go. 8174 04:33:56,985 --> 04:33:57,352 Okay. 8175 04:33:57,352 --> 04:33:57,985 Very nice. 8176 04:33:57,985 --> 04:33:59,921 My apologies for 8177 04:33:59,921 --> 04:34:00,321 the interruption. 8178 04:34:00,321 --> 04:34:00,622 Go ahead. 8179 04:34:00,622 --> 04:34:01,289 Good. 8180 04:34:01,289 --> 04:34:03,824 So that's the first action. 8181 04:34:03,824 --> 04:34:04,458 The second is to establish a 8182 04:34:04,458 --> 04:34:05,930 private right of action to 8183 04:34:05,930 --> 04:34:07,493 allow eligible entities to 8184 04:34:08,429 --> 04:34:09,130 pursue step one enforcement 8185 04:34:09,130 --> 04:34:09,763 against operators that violate 8186 04:34:09,763 --> 04:34:10,164 local commercial cannabis 8187 04:34:10,164 --> 04:34:12,164 regulations. 8188 04:34:13,868 --> 04:34:14,569 And third is to revise 8189 04:34:14,569 --> 04:34:16,969 penalties for noncompliance to 8190 04:34:17,705 --> 04:34:18,373 a maximum of $20,000 per day 8191 04:34:18,373 --> 04:34:20,773 for court imposed civil 8192 04:34:21,142 --> 04:34:21,842 penalties and $20,000 per 8193 04:34:21,842 --> 04:34:23,842 violation for administratively 8194 04:34:26,180 --> 04:34:26,881 imposed civil penalties not to 8195 04:34:26,881 --> 04:34:29,281 exceed $500,000 per parcel or 8196 04:34:30,852 --> 04:34:31,519 business and up to 10,000 per 8197 04:34:31,519 --> 04:34:32,153 violation for administrative 8198 04:34:32,153 --> 04:34:34,553 abatement penalties not to 8199 04:34:35,924 --> 04:34:36,291 exceed 500,000 per parcel or 8200 04:34:36,291 --> 04:34:38,291 structure. 8201 04:34:40,361 --> 04:34:40,995 And before we discuss 8202 04:34:40,995 --> 04:34:41,730 the proposed changes, it's 8203 04:34:41,730 --> 04:34:42,329 helpful to review the licensing 8204 04:34:42,329 --> 04:34:44,329 system around commercial 8205 04:34:44,833 --> 04:34:45,466 cannabis. 8206 04:34:45,466 --> 04:34:46,100 Cannabis in California is 8207 04:34:46,100 --> 04:34:49,100 regulated on a dual track 8208 04:34:49,971 --> 04:34:50,705 system meaning that cannabis is 8209 04:34:50,705 --> 04:34:54,242 regulated both by the state and 8210 04:34:54,242 --> 04:34:54,542 by a businesses, city or county 8211 04:34:54,542 --> 04:34:55,243 . 8212 04:34:55,243 --> 04:34:55,844 And at the state level there 8213 04:34:55,844 --> 04:34:56,211 are two types of retail 8214 04:34:56,211 --> 04:34:58,211 licenses. 8215 04:34:59,280 --> 04:34:59,914 There is a non storefront 8216 04:34:59,914 --> 04:35:00,582 retailer or delivery only 8217 04:35:00,582 --> 04:35:01,116 business which is what we're 8218 04:35:01,116 --> 04:35:03,116 talking about today. 8219 04:35:03,652 --> 04:35:04,419 And there are storefront 8220 04:35:04,419 --> 04:35:07,419 retailers or brick and mortar 8221 04:35:08,490 --> 04:35:09,223 businesses. 8222 04:35:09,223 --> 04:35:09,891 And while state law allows 8223 04:35:09,891 --> 04:35:12,291 cannabis delivery on public 8224 04:35:12,761 --> 04:35:13,428 roads, state law also 8225 04:35:13,428 --> 04:35:14,162 explicitly states that local 8226 04:35:14,162 --> 04:35:16,562 jurisdictions have authority to 8227 04:35:17,565 --> 04:35:18,199 regulate cannabis businesses 8228 04:35:18,199 --> 04:35:18,767 including through business 8229 04:35:18,767 --> 04:35:19,367 license requirements. 8230 04:35:19,367 --> 04:35:21,767 Cities and counties can 8231 04:35:22,937 --> 04:35:23,505 prohibit cannabis of all 8232 04:35:23,505 --> 04:35:25,905 business types some or 8233 04:35:27,208 --> 04:35:27,509 implement their own regulations 8234 04:35:27,509 --> 04:35:28,276 . 8235 04:35:28,276 --> 04:35:28,977 And as shown on the map, this 8236 04:35:28,977 --> 04:35:29,544 creates a patchwork of local 8237 04:35:29,544 --> 04:35:31,544 regulations throughout 8238 04:35:34,850 --> 04:35:35,717 the state. 8239 04:35:35,717 --> 04:35:36,485 >> So if a customer in San 8240 04:35:36,485 --> 04:35:39,485 Diego is ordering cannabis for 8241 04:35:39,788 --> 04:35:40,455 delivery, it can either come 8242 04:35:40,455 --> 04:35:41,890 from a permitted retailer in 8243 04:35:41,890 --> 04:35:44,890 the city a state licensed 8244 04:35:44,125 --> 04:35:44,859 business entering the city to 8245 04:35:44,859 --> 04:35:47,859 deliver or a business operating 8246 04:35:49,640 --> 04:35:49,798 outside of legal requirements. 8247 04:35:49,798 --> 04:35:50,498 Currently the city only permits 8248 04:35:50,498 --> 04:35:53,498 storefront or brick and mortar 8249 04:35:54,269 --> 04:35:54,936 cannabis retailers. 8250 04:35:54,936 --> 04:35:55,604 These are the ones that are 8251 04:35:55,604 --> 04:35:56,304 limited to four per council 8252 04:35:56,304 --> 04:35:58,704 district and they're required 8253 04:35:59,208 --> 04:35:59,541 to obtain a conditional use 8254 04:35:59,541 --> 04:36:00,208 permit. 8255 04:36:00,208 --> 04:36:00,909 They are allowed to deliver 8256 04:36:00,909 --> 04:36:04,212 direct to consumer as part of 8257 04:36:04,212 --> 04:36:04,912 that conditional use permit. 8258 04:36:04,912 --> 04:36:05,514 The city allows state licensed 8259 04:36:05,514 --> 04:36:07,914 delivery from outside of 8260 04:36:08,583 --> 04:36:09,284 the city If that business 8261 04:36:09,284 --> 04:36:09,751 registers for a business tax 8262 04:36:09,751 --> 04:36:10,385 certificate with 8263 04:36:10,385 --> 04:36:12,785 the Treasurer's office and 8264 04:36:13,321 --> 04:36:14,890 remits monthly business taxes. 8265 04:36:14,890 --> 04:36:17,689 The city's land use code does 8266 04:36:18,600 --> 04:36:18,694 not allow delivery only 8267 04:36:18,694 --> 04:36:19,328 non-food storefront retail 8268 04:36:19,328 --> 04:36:19,661 establishments within city 8269 04:36:19,661 --> 04:36:20,329 limits. 8270 04:36:20,329 --> 04:36:22,264 And this ordinance does not 8271 04:36:22,264 --> 04:36:23,198 change that. 8272 04:36:23,198 --> 04:36:27,398 And it does not propose any new 8273 04:36:27,636 --> 04:36:28,337 land uses. 8274 04:36:28,337 --> 04:36:29,370 Cannabis delivery is extremely 8275 04:36:29,370 --> 04:36:31,437 difficult to regulate because 8276 04:36:32,207 --> 04:36:32,907 the operations are mobile. 8277 04:36:32,907 --> 04:36:33,508 And cities can only regulate 8278 04:36:33,508 --> 04:36:33,945 what occurs within their 8279 04:36:33,945 --> 04:36:35,945 jurisdiction. 8280 04:36:37,212 --> 04:36:37,946 And cannabis businesses can 8281 04:36:37,946 --> 04:36:38,680 easily avoid those regulations. 8282 04:36:38,680 --> 04:36:42,384 And on the screen is an example 8283 04:36:42,384 --> 04:36:43,850 of a listing on weed maps for a 8284 04:36:43,850 --> 04:36:43,385 business advertising in North 8285 04:36:43,385 --> 04:36:45,385 Park. 8286 04:36:46,655 --> 04:36:47,389 That's based in Alameda County 8287 04:36:47,389 --> 04:36:48,900 and I'm looking at the license 8288 04:36:48,900 --> 04:36:51,900 on the Department of Cannabis 8289 04:36:51,960 --> 04:36:52,794 Control website. 8290 04:36:52,794 --> 04:36:55,794 It's expired but they currently 8291 04:36:56,310 --> 04:36:56,631 advertise 30 to 60 minute 8292 04:36:56,631 --> 04:36:59,310 deliveries in San Diego. 8293 04:37:00,836 --> 04:37:01,536 So here we can see 8294 04:37:01,536 --> 04:37:02,204 the difference between what's 8295 04:37:02,204 --> 04:37:02,837 advertised to consumers and 8296 04:37:02,837 --> 04:37:05,274 where the current the city 8297 04:37:05,274 --> 04:37:05,607 currently permits cannabis 8298 04:37:05,607 --> 04:37:06,275 retail. 8299 04:37:06,275 --> 04:37:09,875 The image on the left are 8300 04:37:10,145 --> 04:37:10,880 delivery only offerings listed 8301 04:37:10,880 --> 04:37:11,613 on weed maps in San Diego. 8302 04:37:11,613 --> 04:37:14,613 And some of these businesses 8303 04:37:15,751 --> 04:37:16,385 are advertising is based in San 8304 04:37:16,385 --> 04:37:16,751 Diego and are licensed to 8305 04:37:16,751 --> 04:37:17,452 the state. 8306 04:37:17,452 --> 04:37:20,890 Some are not licensed through 8307 04:37:20,890 --> 04:37:20,756 the state or operate on expired 8308 04:37:20,756 --> 04:37:21,357 permits or are not following 8309 04:37:21,357 --> 04:37:23,757 all state and local 8310 04:37:24,293 --> 04:37:24,960 requirements. 8311 04:37:24,960 --> 04:37:25,627 State licensing a strict and 8312 04:37:25,627 --> 04:37:28,270 requires those businesses to 8313 04:37:28,897 --> 04:37:29,498 return to a licensed premise 8314 04:37:29,498 --> 04:37:30,166 after a delivery route. 8315 04:37:30,166 --> 04:37:30,733 To use license facilities to 8316 04:37:30,733 --> 04:37:32,733 restock their product. 8317 04:37:34,503 --> 04:37:35,204 To dispatch deliveries only 8318 04:37:35,204 --> 04:37:35,537 after orders are received and 8319 04:37:35,537 --> 04:37:37,537 logged. 8320 04:37:38,707 --> 04:37:39,408 And it also requires delivery 8321 04:37:39,408 --> 04:37:40,109 of cannabis goods to be 8322 04:37:40,109 --> 04:37:43,109 performed by a driver employed 8323 04:37:43,479 --> 04:37:44,213 by that retailer. 8324 04:37:44,213 --> 04:37:44,880 >> For the retailers to 8325 04:37:44,880 --> 04:37:45,548 maintain an accurate list of 8326 04:37:45,548 --> 04:37:47,948 their delivery employees to 8327 04:37:48,417 --> 04:37:48,784 confirm ages and identities of 8328 04:37:48,784 --> 04:37:49,484 customers. 8329 04:37:49,484 --> 04:37:50,186 And for a delivery drivers to 8330 04:37:50,186 --> 04:37:53,186 carry copies of the retailers 8331 04:37:53,789 --> 04:37:54,890 license id and an employee 8332 04:37:54,890 --> 04:37:54,790 badge. 8333 04:37:54,790 --> 04:37:55,457 Which are just a few examples 8334 04:37:55,457 --> 04:37:58,457 of the numerous other state 8335 04:37:58,594 --> 04:37:59,295 requirements as part of 8336 04:37:59,295 --> 04:38:01,295 commercial cannabis delivery. 8337 04:38:03,866 --> 04:38:04,567 So with that the goals for this 8338 04:38:04,567 --> 04:38:07,567 ordinance are to create a 8339 04:38:08,437 --> 04:38:09,105 centralized regulatory check 8340 04:38:09,105 --> 04:38:09,806 point for cannabis delivery 8341 04:38:09,806 --> 04:38:12,806 services entering the city of 8342 04:38:13,420 --> 04:38:13,809 San Diego. 8343 04:38:13,809 --> 04:38:14,477 It's to increase the cost of 8344 04:38:14,477 --> 04:38:16,477 noncompliance through raise 8345 04:38:17,546 --> 04:38:18,214 penalties. 8346 04:38:18,214 --> 04:38:18,847 And third, it's to allow 8347 04:38:18,847 --> 04:38:19,549 private civil action where 8348 04:38:19,549 --> 04:38:22,549 the city currently lacks staff 8349 04:38:22,718 --> 04:38:23,218 capacity. 8350 04:38:23,218 --> 04:38:23,920 Next slide. 8351 04:38:23,920 --> 04:38:26,320 So with stronger civil 8352 04:38:28,357 --> 04:38:29,580 enforcement the goal is to 8353 04:38:29,580 --> 04:38:29,691 incentivize registration for a 8354 04:38:29,691 --> 04:38:31,691 cannabis delivery services 8355 04:38:33,610 --> 04:38:33,563 business permit and encourage 8356 04:38:33,563 --> 04:38:34,229 local compliance. 8357 04:38:34,229 --> 04:38:37,229 This requirement would be in 8358 04:38:37,934 --> 04:38:38,534 addition to the business tax 8359 04:38:38,534 --> 04:38:39,268 certificate and cannabis 8360 04:38:39,268 --> 04:38:39,869 business tax currently required 8361 04:38:39,869 --> 04:38:41,869 and administered through 8362 04:38:42,838 --> 04:38:43,639 the City Treasurer's office. 8363 04:38:43,639 --> 04:38:44,240 So all three of those processes 8364 04:38:44,240 --> 04:38:46,640 will be administered by 8365 04:38:47,243 --> 04:38:47,910 the city Treasurer's office. 8366 04:38:47,910 --> 04:38:48,610 Cannabis delivery businesses 8367 04:38:48,610 --> 04:38:52,210 entering into the city of San 8368 04:38:52,748 --> 04:38:53,249 Diego would be required to 8369 04:38:53,249 --> 04:38:53,949 obtain the permit. 8370 04:38:53,949 --> 04:38:56,949 This does not include current 8371 04:38:57,520 --> 04:38:58,220 cup holders as delivery 8372 04:38:58,220 --> 04:38:58,888 services are already permitted 8373 04:38:58,888 --> 04:39:01,288 and regulated through their 8374 04:39:02,492 --> 04:39:03,192 conditional use permit and they 8375 04:39:03,192 --> 04:39:03,893 are subject to an annual 8376 04:39:03,893 --> 04:39:04,226 cannabis fee at around $15,000 8377 04:39:04,226 --> 04:39:06,226 a year. 8378 04:39:07,930 --> 04:39:08,631 The application requirements 8379 04:39:08,631 --> 04:39:09,298 are modeled off of the City of 8380 04:39:09,298 --> 04:39:12,298 Ventura which has a similar 8381 04:39:12,468 --> 04:39:13,135 license and would require a 8382 04:39:13,135 --> 04:39:13,836 copy of the business's state 8383 04:39:13,836 --> 04:39:16,773 retail license a copy of their 8384 04:39:16,773 --> 04:39:17,673 business tax certificate 8385 04:39:17,673 --> 04:39:20,673 information of all owners and 8386 04:39:21,544 --> 04:39:22,278 employees. 8387 04:39:22,278 --> 04:39:22,912 Proof that employees are direct 8388 04:39:22,912 --> 04:39:25,312 employees of the delivery 8389 04:39:26,582 --> 04:39:26,916 service as required by state 8390 04:39:26,916 --> 04:39:27,583 law. 8391 04:39:27,583 --> 04:39:30,887 And the fee amount would be 8392 04:39:30,887 --> 04:39:31,588 determined in a future action 8393 04:39:31,588 --> 04:39:32,288 to determine the exact costs 8394 04:39:32,288 --> 04:39:34,688 recoverable amounts related to 8395 04:39:38,427 --> 04:39:38,761 the registration or permit 8396 04:39:38,761 --> 04:39:40,761 expense. 8397 04:39:43,166 --> 04:39:43,866 So the proposed enforcement 8398 04:39:43,866 --> 04:39:44,567 changes are to increase civil 8399 04:39:44,567 --> 04:39:46,967 penalties in three categories 8400 04:39:47,570 --> 04:39:48,304 in the code regulating 8401 04:39:48,304 --> 04:39:49,500 commercial cannabis operations. 8402 04:39:49,500 --> 04:39:52,242 The first is to increase court 8403 04:39:52,242 --> 04:39:52,942 awarded civil penalties for 8404 04:39:52,942 --> 04:39:53,576 commercial cannabis violations 8405 04:39:53,576 --> 04:39:56,576 up to $20,000 per day for 8406 04:39:57,414 --> 04:39:58,800 cannabis business. 8407 04:39:58,800 --> 04:39:58,782 The second is to increase 8408 04:39:58,782 --> 04:40:00,782 administrative civil penalties 8409 04:40:01,618 --> 04:40:02,351 for violations up to $20,000 8410 04:40:02,351 --> 04:40:02,786 per day not to exceed 500,000 8411 04:40:02,786 --> 04:40:04,786 per business. 8412 04:40:06,922 --> 04:40:07,623 And third, this ordinance 8413 04:40:07,623 --> 04:40:10,230 defines cannabis violations as 8414 04:40:10,860 --> 04:40:11,561 a public nuisance which would 8415 04:40:11,561 --> 04:40:12,295 then allow the city to abate 8416 04:40:12,295 --> 04:40:14,695 violations if there's capacity. 8417 04:40:15,632 --> 04:40:16,332 The penalty amounts are aligned 8418 04:40:16,332 --> 04:40:17,000 with recent updates to land 8419 04:40:17,000 --> 04:40:19,400 development code which was 8420 04:40:20,341 --> 04:40:21,104 updated at $10,000 provi lation 8421 04:40:21,104 --> 04:40:23,504 not to exceed 500,000 per 8422 04:40:24,607 --> 04:40:25,408 parcel. 8423 04:40:25,408 --> 04:40:26,900 But the significant enforcement 8424 04:40:26,900 --> 04:40:29,900 change is to introduce a 8425 04:40:29,120 --> 04:40:29,579 private right of action for 8426 04:40:29,579 --> 04:40:29,979 cannabis related code 8427 04:40:29,979 --> 04:40:30,647 violations. 8428 04:40:30,647 --> 04:40:33,647 Private right of action are 8429 04:40:33,817 --> 04:40:34,518 more commonly used in labor law 8430 04:40:34,518 --> 04:40:35,151 but was implemented to allow 8431 04:40:35,151 --> 04:40:35,751 civil enforcement against 8432 04:40:35,751 --> 04:40:37,751 cannabis violations most 8433 04:40:38,655 --> 04:40:39,256 recently through ab 1171 which 8434 04:40:39,256 --> 04:40:41,256 was implemented in 2024. 8435 04:40:43,927 --> 04:40:44,627 The ordinance proposes 8436 04:40:44,627 --> 04:40:45,228 establishing the private right 8437 04:40:45,228 --> 04:40:48,228 of action to allow legal 8438 04:40:48,231 --> 04:40:48,865 cannabis businesses or labor 8439 04:40:48,865 --> 04:40:49,566 organizations representing 8440 04:40:49,566 --> 04:40:52,566 cannabis workers to file civil 8441 04:40:53,770 --> 04:40:54,438 actions to enforce compliance. 8442 04:40:54,438 --> 04:40:55,138 This means that a licensed 8443 04:40:55,138 --> 04:40:55,839 cannabis business could sue a 8444 04:40:55,839 --> 04:40:58,441 business if they can establish 8445 04:40:58,441 --> 04:40:59,142 that a violation of this 8446 04:40:59,142 --> 04:41:01,542 ordinance occurred within city 8447 04:41:02,946 --> 04:41:03,647 limits and any penalties 8448 04:41:03,647 --> 04:41:04,180 recovered would be distributed 8449 04:41:04,180 --> 04:41:04,814 between the city for 8450 04:41:04,814 --> 04:41:07,214 enforcement and the entity 8451 04:41:07,917 --> 04:41:08,318 bringing the civil action 65% 8452 04:41:08,318 --> 04:41:09,190 to 35%. 8453 04:41:09,190 --> 04:41:11,419 And this distribution was 8454 04:41:13,560 --> 04:41:13,757 modeled after the private 8455 04:41:13,757 --> 04:41:16,592 Attorney General's act or paga 8456 04:41:16,592 --> 04:41:17,461 which was updated in 2020 for. 8457 04:41:17,461 --> 04:41:20,461 So with that the recommended 8458 04:41:21,831 --> 04:41:22,465 action today is to approve 8459 04:41:22,465 --> 04:41:23,990 amendments to Chapter four 8460 04:41:23,990 --> 04:41:25,499 Article two Division 15 of 8461 04:41:26,603 --> 04:41:27,303 the San Diego Municipal Code to 8462 04:41:27,303 --> 04:41:28,370 establish a cannabis delivery 8463 04:41:28,370 --> 04:41:30,437 permit business permit category 8464 04:41:31,274 --> 04:41:31,975 for commercial cannabis 8465 04:41:31,975 --> 04:41:32,676 operators entering the city of 8466 04:41:32,676 --> 04:41:35,676 San Diego to conduct delivery 8467 04:41:36,346 --> 04:41:36,947 to create a private right of 8468 04:41:36,947 --> 04:41:37,547 action allowing eligible 8469 04:41:37,547 --> 04:41:38,214 entities including state 8470 04:41:38,214 --> 04:41:40,214 certified cannabis retailers 8471 04:41:41,451 --> 04:41:42,850 and labor unions representing 8472 04:41:42,850 --> 04:41:42,720 cannabis workers to pursue 8473 04:41:42,720 --> 04:41:44,720 civil enforcement against 8474 04:41:46,122 --> 04:41:46,857 operators that violate local 8475 04:41:46,857 --> 04:41:47,524 commercial cannabis regulations 8476 04:41:47,524 --> 04:41:50,524 and to revise penalties for 8477 04:41:50,827 --> 04:41:51,462 noncompliance to a maximum of 8478 04:41:51,462 --> 04:41:52,620 $20,000 per day for court 8479 04:41:52,620 --> 04:41:54,620 imposed civil penalties. 8480 04:41:54,764 --> 04:41:55,365 20,000 per violation for 8481 04:41:55,365 --> 04:41:57,365 administratively imposed 8482 04:41:59,690 --> 04:41:59,737 penalties and up to $10,000 per 8483 04:41:59,737 --> 04:42:01,737 violation for administrative 8484 04:42:03,540 --> 04:42:04,108 abatement penalties. 8485 04:42:04,108 --> 04:42:04,541 And that concludes my 8486 04:42:04,541 --> 04:42:04,908 presentation. 8487 04:42:04,908 --> 04:42:05,275 Thank you. 8488 04:42:05,275 --> 04:42:07,275 All right. 8489 04:42:08,779 --> 04:42:09,479 Thank you very much for 8490 04:42:09,479 --> 04:42:10,800 the work and the presentation. 8491 04:42:10,800 --> 04:42:10,747 Now I'll turn it over to 8492 04:42:10,747 --> 04:42:14,510 the office of the rba for 8493 04:42:14,510 --> 04:42:14,618 comment. 8494 04:42:14,618 --> 04:42:15,219 >> Thank you. 8495 04:42:15,219 --> 04:42:15,852 Council PRESIDENT Sergio 8496 04:42:15,852 --> 04:42:17,888 Leclaire from the iab his 8497 04:42:17,888 --> 04:42:18,555 office as presented by staff 8498 04:42:18,555 --> 04:42:19,880 The this proposal would make 8499 04:42:19,880 --> 04:42:21,488 four main changes to 8500 04:42:22,392 --> 04:42:23,226 the municipal code. 8501 04:42:23,226 --> 04:42:23,894 First they would create a new 8502 04:42:23,894 --> 04:42:25,894 permit category specifically 8503 04:42:26,697 --> 04:42:27,431 for cannabis businesses that 8504 04:42:27,431 --> 04:42:28,990 are based outside the city but 8505 04:42:28,990 --> 04:42:30,499 deliver cannabis products to 8506 04:42:31,568 --> 04:42:32,302 customers within city limits. 8507 04:42:32,302 --> 04:42:35,302 Consistent with the status quo. 8508 04:42:36,540 --> 04:42:37,241 This proposal will not permit 8509 04:42:37,241 --> 04:42:37,708 delivery only businesses based 8510 04:42:37,708 --> 04:42:39,708 within the city. 8511 04:42:41,612 --> 04:42:42,212 Second, it would establish a 8512 04:42:42,212 --> 04:42:42,880 private right of action 8513 04:42:42,880 --> 04:42:44,880 allowing compliant cannabis 8514 04:42:46,317 --> 04:42:47,170 businesses and representative 8515 04:42:47,170 --> 04:42:47,718 labor organizations to pursue 8516 04:42:47,718 --> 04:42:50,118 civil action against operators 8517 04:42:51,455 --> 04:42:52,122 without a civil city permit 8518 04:42:52,122 --> 04:42:55,122 without a valid city permit. 8519 04:42:56,293 --> 04:42:56,961 Civil penalties recoverable in 8520 04:42:56,961 --> 04:42:57,394 this manner would be shared 8521 04:42:57,394 --> 04:42:59,394 with the city. 8522 04:43:01,640 --> 04:43:01,765 Third, it will classify 8523 04:43:01,765 --> 04:43:02,366 cannabis businesses without a 8524 04:43:02,366 --> 04:43:02,733 city permit as a public 8525 04:43:02,733 --> 04:43:04,733 nuisance. 8526 04:43:05,402 --> 04:43:06,137 And lastly it would separate. 8527 04:43:06,137 --> 04:43:06,837 It would update fines for those 8528 04:43:06,837 --> 04:43:09,837 that fail to comply with 8529 04:43:10,141 --> 04:43:10,574 the city's cannabis permitting 8530 04:43:10,574 --> 04:43:11,309 requirements. 8531 04:43:11,309 --> 04:43:11,875 Based on our conversations with 8532 04:43:11,875 --> 04:43:13,875 relevant departments. 8533 04:43:15,246 --> 04:43:15,947 The fiscal impact of this 8534 04:43:15,947 --> 04:43:18,947 proposal is uncertain but MAY 8535 04:43:19,716 --> 04:43:20,451 not be substantial. 8536 04:43:20,451 --> 04:43:21,118 There are three noteworthy 8537 04:43:21,118 --> 04:43:23,518 sources of potential revenue 8538 04:43:24,955 --> 04:43:25,656 outlined in the proposal. 8539 04:43:25,656 --> 04:43:26,390 First is permitting fees. 8540 04:43:26,390 --> 04:43:29,390 Second is city imposed fines. 8541 04:43:29,827 --> 04:43:30,428 And then third is the city's 8542 04:43:30,428 --> 04:43:31,163 share of civil penalties 8543 04:43:31,163 --> 04:43:33,563 recovered through private right 8544 04:43:34,970 --> 04:43:34,565 of action which would be one 8545 04:43:34,565 --> 04:43:36,565 time in nature. 8546 04:43:38,436 --> 04:43:39,170 Regarding permitting fees, 8547 04:43:39,170 --> 04:43:39,870 the number of businesses likely 8548 04:43:39,870 --> 04:43:43,470 to seek a new delivery permit 8549 04:43:43,507 --> 04:43:44,208 is limited currently to conduct 8550 04:43:44,208 --> 04:43:44,675 business including deliveries 8551 04:43:44,675 --> 04:43:46,675 within the city. 8552 04:43:47,711 --> 04:43:48,379 Cannabis businesses outside 8553 04:43:48,379 --> 04:43:49,460 city limits must obtain a 8554 04:43:49,460 --> 04:43:51,446 business tax certificate and 8555 04:43:52,316 --> 04:43:53,170 remit cannabis business tax. 8556 04:43:53,170 --> 04:43:53,717 The city Treasurer's office 8557 04:43:53,717 --> 04:43:56,717 indicated that there are five 8558 04:43:58,250 --> 04:43:58,789 of these compliant businesses. 8559 04:43:58,789 --> 04:43:59,457 Staff noted that if a new 8560 04:43:59,457 --> 04:44:01,857 permit is established these 8561 04:44:03,227 --> 04:44:03,827 five businesses are expected to 8562 04:44:03,827 --> 04:44:06,827 obtain the new permit in 8563 04:44:07,231 --> 04:44:07,965 addition to the business tax to 8564 04:44:07,965 --> 04:44:10,365 cannabis delivery services that 8565 04:44:11,903 --> 04:44:12,202 do not currently have business 8566 04:44:12,202 --> 04:44:12,837 . 8567 04:44:12,837 --> 04:44:13,471 Business tax ratification, 8568 04:44:13,471 --> 04:44:15,871 however, would likely not 8569 04:44:16,907 --> 04:44:17,575 comply with additional 8570 04:44:17,575 --> 04:44:18,242 permitting requirement given 8571 04:44:18,242 --> 04:44:21,112 the small number of affected 8572 04:44:21,112 --> 04:44:21,813 businesses Any permit fee 8573 04:44:21,813 --> 04:44:22,446 revenue as well as cannabis 8574 04:44:22,446 --> 04:44:23,460 business tax revenue would 8575 04:44:23,460 --> 04:44:25,446 likely be limited unless 8576 04:44:26,684 --> 04:44:27,850 private rights of action compel 8577 04:44:27,850 --> 04:44:29,850 enforcement. 8578 04:44:31,823 --> 04:44:32,490 Regarding fines we found that 8579 04:44:32,490 --> 04:44:33,124 the city currently does not 8580 04:44:33,124 --> 04:44:33,791 receive currently receives 8581 04:44:33,791 --> 04:44:36,191 minimal city issued penalty 8582 04:44:36,594 --> 04:44:37,195 revenue from delivery operators 8583 04:44:37,195 --> 04:44:37,929 that do not comply with 8584 04:44:37,929 --> 04:44:40,329 the city's current regulations. 8585 04:44:41,932 --> 04:44:42,633 Therefore, even with 8586 04:44:42,633 --> 04:44:43,301 adjustments to the fines city 8587 04:44:43,301 --> 04:44:45,701 issued penalty revenue would 8588 04:44:46,700 --> 04:44:46,837 likely remain minimal. 8589 04:44:46,837 --> 04:44:49,837 The private Right of action 8590 04:44:51,750 --> 04:44:51,742 provision offers an additional 8591 04:44:51,742 --> 04:44:52,109 enforcement tool for private 8592 04:44:52,109 --> 04:44:54,109 entities. 8593 04:44:55,580 --> 04:44:56,247 Though state law allows 8594 04:44:56,247 --> 04:44:58,247 licensed cannabis businesses 8595 04:45:00,418 --> 04:45:01,152 including those permitted by by 8596 04:45:01,152 --> 04:45:01,819 the city to pursue civil action 8597 04:45:01,819 --> 04:45:04,219 against operators without a 8598 04:45:05,957 --> 04:45:06,291 state license, cannabis 8599 04:45:06,291 --> 04:45:06,924 license. 8600 04:45:06,924 --> 04:45:07,525 The city's city attorney's 8601 04:45:07,525 --> 04:45:10,525 office has not found any 8602 04:45:11,290 --> 04:45:11,395 reported cases of such 8603 04:45:11,395 --> 04:45:11,997 lawsuits. 8604 04:45:11,997 --> 04:45:12,697 So it's unclear whether 8605 04:45:12,697 --> 04:45:15,970 eligible parties would choose 8606 04:45:16,935 --> 04:45:17,368 to pursue civil action under 8607 04:45:17,368 --> 04:45:18,690 this proposal. 8608 04:45:18,690 --> 04:45:21,690 As noted by the presentation, 8609 04:45:21,172 --> 04:45:21,940 however, the state's provision 8610 04:45:21,940 --> 04:45:22,607 has a higher burden of proof 8611 04:45:22,607 --> 04:45:23,241 and a more limited financial 8612 04:45:23,241 --> 04:45:25,641 incentive Compared to this 8613 04:45:26,544 --> 04:45:27,245 proposal. 8614 04:45:27,245 --> 04:45:27,979 Additionally, this proposal 8615 04:45:27,979 --> 04:45:28,613 would also allow compliant city 8616 04:45:28,613 --> 04:45:31,130 businesses to pursue civil 8617 04:45:31,816 --> 04:45:32,450 action against operators 8618 04:45:32,450 --> 04:45:33,117 without a city permit work 8619 04:45:33,117 --> 04:45:35,517 orders regardless of whether 8620 04:45:36,588 --> 04:45:39,588 they have a state issued 8621 04:45:41,960 --> 04:45:42,661 cannabis license or not or 8622 04:45:42,661 --> 04:45:43,295 the intent of this proposal is 8623 04:45:43,295 --> 04:45:43,895 to regulate state licensed 8624 04:45:43,895 --> 04:45:45,895 cannabis businesses not 8625 04:45:46,798 --> 04:45:47,431 complying with city regulations 8626 04:45:47,431 --> 04:45:48,320 or unregulated operators. 8627 04:45:48,320 --> 04:45:48,666 We note that the greater 8628 04:45:48,666 --> 04:45:50,666 compliance challenge lies 8629 04:45:52,303 --> 04:45:52,904 within with cannabis delivery 8630 04:45:52,904 --> 04:45:53,605 businesses that operate 8631 04:45:53,605 --> 04:45:56,500 illicitly without state issued 8632 04:45:57,275 --> 04:45:58,900 licenses or illicit operators 8633 04:45:58,900 --> 04:46:01,900 since again they're unlikely to 8634 04:46:02,514 --> 04:46:03,148 comply with the new additional 8635 04:46:03,148 --> 04:46:03,748 local permit requirement. 8636 04:46:03,748 --> 04:46:04,382 Additionally, since this 8637 04:46:04,382 --> 04:46:06,382 proposal doesn't increase 8638 04:46:07,719 --> 04:46:08,420 the city's enforcement levels, 8639 04:46:08,420 --> 04:46:09,870 the permit and fines provision 8640 04:46:09,870 --> 04:46:12,870 of this proposal MAY not 8641 04:46:13,158 --> 04:46:13,825 significantly improve 8642 04:46:13,825 --> 04:46:14,459 compliance among illicit or 8643 04:46:14,459 --> 04:46:16,459 unregulated operators and 8644 04:46:17,930 --> 04:46:18,430 materially increase the city's 8645 04:46:18,430 --> 04:46:19,970 revenues. 8646 04:46:19,970 --> 04:46:22,970 Unless a private right of 8647 04:46:22,967 --> 04:46:23,701 action compels enforcement 8648 04:46:23,701 --> 04:46:24,302 During our discussions with 8649 04:46:24,302 --> 04:46:26,302 the Development Services 8650 04:46:28,340 --> 04:46:29,410 Department and the Treasurer 8651 04:46:29,410 --> 04:46:29,508 they raise concerns regarding 8652 04:46:29,508 --> 04:46:30,141 implementation. 8653 04:46:30,141 --> 04:46:32,141 These operational concerns 8654 04:46:34,779 --> 04:46:35,380 include uncertainty over 8655 04:46:35,380 --> 04:46:35,981 whether which new which 8656 04:46:35,981 --> 04:46:37,981 department would enforce 8657 04:46:40,218 --> 04:46:40,886 the new perimeter permit or 8658 04:46:40,886 --> 04:46:41,553 what enforcement of the new 8659 04:46:41,553 --> 04:46:42,154 permit would look like from 8660 04:46:42,154 --> 04:46:44,154 the city's perspective. 8661 04:46:44,756 --> 04:46:45,424 Questions about the city's 8662 04:46:45,424 --> 04:46:46,158 authority to find businesses 8663 04:46:46,158 --> 04:46:46,725 located outside city boundaries 8664 04:46:46,725 --> 04:46:48,725 and whether additional 8665 04:46:50,795 --> 04:46:51,363 resources would be needed to 8666 04:46:51,363 --> 04:46:51,763 administer and enforce 8667 04:46:51,763 --> 04:46:52,397 the program. 8668 04:46:52,397 --> 04:46:54,797 We recommend that council 8669 04:46:55,767 --> 04:46:56,468 inquire further with 8670 04:46:56,468 --> 04:46:57,680 departments including the city 8671 04:46:57,680 --> 04:46:59,680 Attorney's office, city 8672 04:47:01,306 --> 04:47:02,400 treasurers, dsd and police 8673 04:47:02,400 --> 04:47:02,708 the police department regarding 8674 04:47:02,708 --> 04:47:03,342 the practical challenges of 8675 04:47:03,342 --> 04:47:05,342 implementing and enforcing 8676 04:47:06,440 --> 04:47:06,711 these provisions and whether 8677 04:47:06,711 --> 04:47:07,245 they are there are any 8678 04:47:07,245 --> 04:47:07,946 outstanding issues. 8679 04:47:07,946 --> 04:47:10,946 This concludes my comments and 8680 04:47:13,285 --> 04:47:13,652 are available for any 8681 04:47:13,652 --> 04:47:14,352 questions. 8682 04:47:14,352 --> 04:47:15,530 Then comes Council PRESIDENT. 8683 04:47:15,530 --> 04:47:15,753 All right, Thank you for your 8684 04:47:15,753 --> 04:47:16,155 always appreciate the input at 8685 04:47:16,155 --> 04:47:17,923 the office. 8686 04:47:17,923 --> 04:47:18,590 With that Deputy clerk please 8687 04:47:18,590 --> 04:47:20,990 proceed with public comment. 8688 04:47:22,527 --> 04:47:23,228 >> This item received five 8689 04:47:23,228 --> 04:47:23,929 comments in Opposition via our 8690 04:47:23,929 --> 04:47:24,596 economic forum which has been 8691 04:47:24,596 --> 04:47:26,996 distributed to the Council. 8692 04:47:28,100 --> 04:47:28,434 We'll begin with in-person 8693 04:47:28,434 --> 04:47:29,680 comment. 8694 04:47:29,680 --> 04:47:29,401 DeAndre Brooks please come 8695 04:47:29,401 --> 04:47:31,401 forward. 8696 04:47:33,839 --> 04:47:34,406 You'll have one minute to speak 8697 04:47:34,406 --> 04:47:35,140 while DeAndre walks to 8698 04:47:35,140 --> 04:47:35,507 the microphone I would ask Matt 8699 04:47:35,507 --> 04:47:37,507 Stransky. 8700 04:47:39,578 --> 04:47:40,279 Mark o'Brien as our man king 8701 04:47:40,279 --> 04:47:43,879 And Terry best to please come 8702 04:47:44,150 --> 04:47:44,783 to the front row Council 8703 04:47:44,783 --> 04:47:47,783 members My name is DeAndre 8704 04:47:50,222 --> 04:47:50,956 Brooks and I'm here tonight as 8705 04:47:50,956 --> 04:47:51,623 a concerned citizen with strong 8706 04:47:51,623 --> 04:47:54,230 opposition to this ordinance 8707 04:47:55,460 --> 04:47:56,228 for several reasons. 8708 04:47:56,228 --> 04:47:56,829 In a sense it creates a 8709 04:47:56,829 --> 04:47:59,229 monopoly on the delivery 8710 04:48:02,000 --> 04:48:02,534 services and that's also 8711 04:48:02,534 --> 04:48:03,202 counterproductive to 8712 04:48:03,202 --> 04:48:05,602 the county's cannabis equity 8713 04:48:07,373 --> 04:48:07,673 program that's been spearheaded 8714 04:48:07,673 --> 04:48:08,374 . 8715 04:48:08,374 --> 04:48:09,108 So for individuals who have 8716 04:48:09,108 --> 04:48:13,110 been harmed by the war on drugs 8717 04:48:13,110 --> 04:48:13,679 and then living out over 8718 04:48:13,679 --> 04:48:14,279 criminalized communities an 8719 04:48:14,279 --> 04:48:15,130 opportunity to get into 8720 04:48:15,130 --> 04:48:18,613 the cannabis industry so we end 8721 04:48:19,251 --> 04:48:19,552 up voting yes to things like 8722 04:48:19,552 --> 04:48:20,252 that. 8723 04:48:20,252 --> 04:48:21,186 It is super counterproductive 8724 04:48:21,186 --> 04:48:24,690 to what we're trying to do as a 8725 04:48:24,690 --> 04:48:25,558 county. 8726 04:48:25,558 --> 04:48:26,225 And if you recall this same 8727 04:48:26,225 --> 04:48:29,225 issue came before this city 8728 04:48:30,596 --> 04:48:31,297 council and you guys kind of 8729 04:48:31,297 --> 04:48:32,310 shut it down basically sort of 8730 04:48:32,310 --> 04:48:32,765 county had to come in to give 8731 04:48:32,765 --> 04:48:35,165 that demographic an opportunity 8732 04:48:36,902 --> 04:48:37,536 to thrive in this industry. 8733 04:48:37,536 --> 04:48:38,237 So again, I'm a strong 8734 04:48:38,237 --> 04:48:39,572 opposition to this and I urge 8735 04:48:39,572 --> 04:48:42,572 you to consider everything I 8736 04:48:47,280 --> 04:48:47,880 just said Thank you, MR. Ski. 8737 04:48:47,880 --> 04:48:48,180 I don't see you. 8738 04:48:48,180 --> 04:48:50,180 Okay. 8739 04:48:52,170 --> 04:48:52,317 We'll move on to Marco Briones 8740 04:48:52,317 --> 04:48:52,985 . 8741 04:48:52,985 --> 04:48:53,586 Thank you, council members. 8742 04:48:53,586 --> 04:48:54,253 But again we stand in 8743 04:48:54,253 --> 04:48:56,653 solidarity with the brothers 8744 04:48:58,570 --> 04:48:58,724 and sisters of 135 you if cw 8745 04:48:58,724 --> 04:48:59,424 and ask you to support this 8746 04:48:59,424 --> 04:49:02,424 ordinance today at a time 8747 04:49:03,496 --> 04:49:04,196 cannabis delivery businesses 8748 04:49:04,196 --> 04:49:04,930 are avoiding paying the city's 8749 04:49:04,930 --> 04:49:05,598 cannabis retail tax and harming 8750 04:49:05,598 --> 04:49:06,265 our local permitted cannabis 8751 04:49:06,265 --> 04:49:09,265 retailers like the ones I've 8752 04:49:09,469 --> 04:49:09,869 known since childhood that are 8753 04:49:09,869 --> 04:49:10,569 here today. 8754 04:49:10,569 --> 04:49:11,170 So our local cannabis workers 8755 04:49:11,170 --> 04:49:13,570 are really feeling these 8756 04:49:16,141 --> 04:49:16,875 effects of the unregulated 8757 04:49:16,875 --> 04:49:17,509 activity, seeing their hours of 8758 04:49:17,509 --> 04:49:19,909 layoffs and wages reduced 8759 04:49:20,346 --> 04:49:20,680 workers and taxpayers are 8760 04:49:20,680 --> 04:49:21,447 better. 8761 04:49:21,447 --> 04:49:21,981 >> We support this and we ask 8762 04:49:21,981 --> 04:49:24,981 you to do the same. 8763 04:49:27,860 --> 04:49:27,587 Thank you. 8764 04:49:27,587 --> 04:49:28,253 Thank you. 8765 04:49:28,253 --> 04:49:28,585 Our next speaker is Armand 8766 04:49:28,585 --> 04:49:28,921 King. 8767 04:49:28,921 --> 04:49:30,921 All right. 8768 04:49:32,859 --> 04:49:33,392 Do you have several speakers 8769 04:49:33,392 --> 04:49:34,600 reading time to you? 8770 04:49:34,600 --> 04:49:34,693 When I call your name please 8771 04:49:34,693 --> 04:49:35,940 raise your hand to confirm 8772 04:49:35,940 --> 04:49:37,940 you're here. 8773 04:49:38,765 --> 04:49:39,165 Justin Lewis going on. 8774 04:49:39,165 --> 04:49:39,632 Okay. 8775 04:49:39,632 --> 04:49:41,632 Anthony Hawkins. 8776 04:49:46,139 --> 04:49:46,468 Okay, Louis The waste business 8777 04:49:46,468 --> 04:49:46,739 gone. 8778 04:49:46,739 --> 04:49:48,739 Okay. 8779 04:49:49,541 --> 04:49:50,276 And tis one Let us Okay. 8780 04:49:50,276 --> 04:49:50,609 >> So that you'll have three 8781 04:49:50,609 --> 04:49:50,910 minutes. 8782 04:49:50,910 --> 04:49:52,910 Okay. 8783 04:49:54,847 --> 04:49:55,348 Sounds good. 8784 04:49:55,348 --> 04:49:56,150 Thank you. 8785 04:49:56,150 --> 04:49:56,482 So what was pointed out was 8786 04:49:56,482 --> 04:49:57,216 Alameda, right? 8787 04:49:57,216 --> 04:50:00,216 Alameda problem There are there 8788 04:50:01,120 --> 04:50:01,754 is a problem with dispensary 8789 04:50:01,754 --> 04:50:02,422 deliveries happening from 8790 04:50:02,422 --> 04:50:05,422 outside of San Diego County. 8791 04:50:07,126 --> 04:50:07,493 Very much so that should be 8792 04:50:07,493 --> 04:50:08,161 regulated. 8793 04:50:08,161 --> 04:50:08,828 What's not mentioned is our 8794 04:50:08,828 --> 04:50:09,328 neighbors La mesa, National 8795 04:50:09,328 --> 04:50:11,328 City, Chula Vista. 8796 04:50:13,199 --> 04:50:13,833 Let me grow now They cannot 8797 04:50:13,833 --> 04:50:14,534 deliver across the street 8798 04:50:14,534 --> 04:50:15,268 without going through this and 8799 04:50:15,268 --> 04:50:19,338 I'm not here to fight for them. 8800 04:50:19,338 --> 04:50:20,390 I doubt has been reach out to 8801 04:50:20,390 --> 04:50:20,740 these cities to let them know 8802 04:50:20,740 --> 04:50:21,407 that this is about to happen. 8803 04:50:21,407 --> 04:50:24,407 There has not been adequate 8804 04:50:25,211 --> 04:50:25,912 reach out to communities We 8805 04:50:25,912 --> 04:50:26,579 there hasn't been a time limit 8806 04:50:26,579 --> 04:50:30,179 right now The problem is and 8807 04:50:30,450 --> 04:50:31,151 what I'm here representing 8808 04:50:31,151 --> 04:50:31,817 those social equity applicants 8809 04:50:31,817 --> 04:50:32,518 I'm the program manager for 8810 04:50:32,518 --> 04:50:36,118 the County of San Diego Social 8811 04:50:36,590 --> 04:50:37,123 Equity Program. 8812 04:50:37,123 --> 04:50:37,857 The majority of our 8813 04:50:37,857 --> 04:50:40,857 participants are San Diego City 8814 04:50:42,762 --> 04:50:43,429 residents from your district, 8815 04:50:43,429 --> 04:50:44,130 your district or district in 8816 04:50:44,130 --> 04:50:44,430 your district the majority of 8817 04:50:44,430 --> 04:50:45,310 them. 8818 04:50:45,310 --> 04:50:45,365 Why are they in a county 8819 04:50:45,365 --> 04:50:47,365 program? 8820 04:50:49,402 --> 04:50:50,169 Because we all know I thought 8821 04:50:50,169 --> 04:50:50,803 we know we had it here and 8822 04:50:50,803 --> 04:50:53,803 the same entities that are 8823 04:50:55,474 --> 04:50:56,209 coming bringing that brought 8824 04:50:56,209 --> 04:50:56,909 this law because it didn't come 8825 04:50:56,909 --> 04:50:57,610 from your office, it came from 8826 04:50:57,610 --> 04:51:00,713 the same people, the same evil 8827 04:51:00,713 --> 04:51:01,414 people that stripped us from 8828 04:51:01,414 --> 04:51:04,414 having a social equity program 8829 04:51:07,320 --> 04:51:08,200 here are now back in this. 8830 04:51:08,200 --> 04:51:08,688 So what's behind the scenes 8831 04:51:08,688 --> 04:51:09,322 That private right to action 8832 04:51:09,322 --> 04:51:12,322 private right to action is 8833 04:51:12,859 --> 04:51:13,560 saying there now you all by 8834 04:51:13,560 --> 04:51:14,261 voting yes or giving them a 8835 04:51:14,261 --> 04:51:17,261 loaded gun to now attack 8836 04:51:18,965 --> 04:51:19,665 the very people that should be 8837 04:51:19,665 --> 04:51:20,400 in the city program right now 8838 04:51:20,400 --> 04:51:21,330 These people live in your city. 8839 04:51:21,330 --> 04:51:24,330 They live in Linda Vista. 8840 04:51:25,400 --> 04:51:25,671 They live in North Park. 8841 04:51:25,671 --> 04:51:25,972 They live in southeast San 8842 04:51:25,972 --> 04:51:26,439 Diego. 8843 04:51:26,439 --> 04:51:27,274 They live here. 8844 04:51:27,274 --> 04:51:30,843 And even if now they have to 8845 04:51:30,843 --> 04:51:31,510 locate because to have a 8846 04:51:31,510 --> 04:51:32,178 delivery service you have to 8847 04:51:32,178 --> 04:51:32,512 have a building somewhere to 8848 04:51:32,512 --> 04:51:32,979 deliver. 8849 04:51:32,979 --> 04:51:34,979 Forget outside. 8850 04:51:36,617 --> 04:51:37,283 Forget Oakland, forget L.A. San 8851 04:51:37,283 --> 04:51:37,951 Diego residents that you're 8852 04:51:37,951 --> 04:51:40,951 attacking here are people so 8853 04:51:42,722 --> 04:51:43,457 they have to have a break not a 8854 04:51:43,457 --> 04:51:44,124 brick and mortar but a building 8855 04:51:44,124 --> 04:51:47,124 where they store their their 8856 04:51:48,161 --> 04:51:48,495 stories that they live in San 8857 04:51:48,495 --> 04:51:49,228 Diego. 8858 04:51:49,228 --> 04:51:49,963 They pay rent in Central City. 8859 04:51:49,963 --> 04:51:50,697 They shop in San Diego City. 8860 04:51:50,697 --> 04:51:53,697 Where's the revenue coming back 8861 04:51:54,134 --> 04:51:55,168 to here? 8862 04:51:55,168 --> 04:51:55,769 So my only ask is is there a 8863 04:51:55,769 --> 04:51:56,470 way for us if we want to 8864 04:51:56,470 --> 04:51:58,870 register them because they're 8865 04:52:00,207 --> 04:52:01,800 going to be legal operators, 8866 04:52:01,800 --> 04:52:01,675 Can we set up a process to 8867 04:52:01,675 --> 04:52:05,275 where the city of San Diego 8868 04:52:07,147 --> 04:52:07,848 knows who they are but to add 8869 04:52:07,848 --> 04:52:08,615 an extra barrier to people who 8870 04:52:08,615 --> 04:52:12,215 have been buried and we stand 8871 04:52:12,685 --> 04:52:13,420 here marching on the ashes of a 8872 04:52:13,420 --> 04:52:14,870 program that we should have had 8873 04:52:14,870 --> 04:52:16,487 right Because certain people 8874 04:52:18,692 --> 04:52:19,359 are afraid to feel the wrath of 8875 04:52:19,359 --> 04:52:22,359 high paid lobbyists that are 8876 04:52:24,464 --> 04:52:25,980 pushing this forward. 8877 04:52:25,980 --> 04:52:25,732 >> I have represented 8878 04:52:25,732 --> 04:52:26,166 the people from your city. 8879 04:52:26,166 --> 04:52:28,166 Clean this up. 8880 04:52:30,471 --> 04:52:30,937 Yes, we need to regulate 8881 04:52:30,937 --> 04:52:31,338 outside people. 8882 04:52:31,338 --> 04:52:31,872 Yes, we do. 8883 04:52:31,872 --> 04:52:32,539 But this ain't it. 8884 04:52:32,539 --> 04:52:33,373 Let's do this right Because 8885 04:52:33,373 --> 04:52:37,444 once you sign this once you say 8886 04:52:37,444 --> 04:52:38,112 yes and this is put into place 8887 04:52:38,112 --> 04:52:38,645 you're giving You heard of a 8888 04:52:38,645 --> 04:52:39,245 Trojan horse, right? 8889 04:52:39,245 --> 04:52:42,245 It looks nice and shiny. 8890 04:52:43,250 --> 04:52:43,917 The way to deliver to your is 8891 04:52:43,917 --> 04:52:44,585 we're keeping out all these 8892 04:52:44,585 --> 04:52:45,286 outside folks But meanwhile 8893 04:52:45,286 --> 04:52:48,822 inside that Trojan horse is an 8894 04:52:48,822 --> 04:52:49,590 army ready to attack. 8895 04:52:49,590 --> 04:52:50,290 They can't wait to see all 8896 04:52:50,290 --> 04:52:50,991 these people out of business. 8897 04:52:50,991 --> 04:52:51,625 They couldn't stop the county 8898 04:52:51,625 --> 04:52:54,361 the same way they stopped 8899 04:52:54,361 --> 04:52:55,620 the city They couldn't And 8900 04:52:55,620 --> 04:52:55,562 we're about to have unlimited 8901 04:52:55,562 --> 04:52:57,562 delivery services. 8902 04:53:01,268 --> 04:53:01,669 Thank you for your time. 8903 04:53:01,669 --> 04:53:02,269 Thank you. 8904 04:53:02,269 --> 04:53:02,803 Next up Terry Bass. 8905 04:53:02,803 --> 04:53:03,270 Well, Terry walks to 8906 04:53:03,270 --> 04:53:04,710 the microphone. 8907 04:53:04,710 --> 04:53:06,907 I would like to ask Daniela 8908 04:53:06,907 --> 04:53:07,508 Nelson, Victoria Bush, James 8909 04:53:07,508 --> 04:53:08,208 Case, Nate Ferryman and 8910 04:53:08,208 --> 04:53:11,208 allegedly Otto to please come 8911 04:53:12,712 --> 04:53:13,130 to the front row please Again, 8912 04:53:13,130 --> 04:53:13,380 Terry. 8913 04:53:13,380 --> 04:53:15,380 Thank you. 8914 04:53:16,490 --> 04:53:16,517 I'm Terry Best, a voter in 8915 04:53:16,517 --> 04:53:17,152 District three. 8916 04:53:17,152 --> 04:53:17,818 This appears to be an 8917 04:53:17,818 --> 04:53:20,218 unnecessary law aimed at 8918 04:53:22,323 --> 04:53:22,790 the Social at the county social 8919 04:53:22,790 --> 04:53:23,424 equity program. 8920 04:53:23,424 --> 04:53:26,424 My suggestion would be to 8921 04:53:28,128 --> 04:53:28,728 please remove the private right 8922 04:53:28,728 --> 04:53:29,163 of action portion from 8923 04:53:29,163 --> 04:53:31,163 the proposal. 8924 04:53:34,601 --> 04:53:35,350 It is just wrong and shame on 8925 04:53:35,350 --> 04:53:35,669 you. 8926 04:53:35,669 --> 04:53:38,690 >> Shame on you too. 8927 04:53:41,410 --> 04:53:41,809 Please also modify the proposal 8928 04:53:41,809 --> 04:53:42,309 to only cover out of county 8929 04:53:42,309 --> 04:53:44,309 delivery services. 8930 04:53:46,346 --> 04:53:47,470 Please exclude all three within 8931 04:53:47,470 --> 04:53:50,647 San Diego County and San Diego 8932 04:53:52,219 --> 04:53:53,530 County itself from this law. 8933 04:53:53,530 --> 04:53:53,721 Each of our cities has a robust 8934 04:53:53,721 --> 04:53:55,721 cannabis permitting process. 8935 04:53:58,158 --> 04:53:58,759 It is not necessary to be 8936 04:53:58,759 --> 04:53:59,293 hostile to other cities 8937 04:53:59,293 --> 04:54:01,293 delivery operations. 8938 04:54:04,498 --> 04:54:05,232 Please do this so that at 8939 04:54:05,232 --> 04:54:05,833 the very least the one licensed 8940 04:54:05,833 --> 04:54:08,233 type where we struggling 8941 04:54:09,603 --> 04:54:10,204 entrepreneur could hope to get 8942 04:54:10,204 --> 04:54:13,204 into the industry is not 8943 04:54:16,310 --> 04:54:17,278 blocked by special interests. 8944 04:54:17,278 --> 04:54:17,812 Thank you that those who do not 8945 04:54:17,812 --> 04:54:18,445 want the competition 8946 04:54:18,445 --> 04:54:20,845 the current city operators 8947 04:54:23,840 --> 04:54:23,584 behind this proposal have 8948 04:54:23,584 --> 04:54:24,180 enjoyed additional 8949 04:54:24,180 --> 04:54:24,385 consideration. 8950 04:54:24,385 --> 04:54:25,190 Thank you. 8951 04:54:25,190 --> 04:54:27,419 No other industry enjoys. 8952 04:54:31,392 --> 04:54:32,125 Now the city is considering 8953 04:54:32,125 --> 04:54:32,626 whether that does conclude your 8954 04:54:32,626 --> 04:54:33,327 time on the board. 8955 04:54:33,327 --> 04:54:34,280 What would you do if you took 8956 04:54:34,280 --> 04:54:34,695 special interest along with a 8957 04:54:34,695 --> 04:54:38,650 rabbit for a profit and any 8958 04:54:38,650 --> 04:54:38,566 other. 8959 04:54:38,566 --> 04:54:40,566 >> Thank you. 8960 04:54:40,901 --> 04:54:43,901 Next speaker is Don Ellen 8961 04:54:47,809 --> 04:54:48,309 Nelson. 8962 04:54:48,309 --> 04:54:48,743 Hello, everybody. 8963 04:54:48,743 --> 04:54:49,377 Good evening. 8964 04:54:49,377 --> 04:54:50,311 My name is Donald Nelson. 8965 04:54:50,311 --> 04:54:54,248 I am a proud resident of San 8966 04:54:54,248 --> 04:54:54,849 Diego and live out to just 8967 04:54:54,849 --> 04:54:55,549 outside of City Heights. 8968 04:54:55,549 --> 04:54:59,149 I am actually here in support 8969 04:54:59,587 --> 04:55:00,321 of this measure. 8970 04:55:00,321 --> 04:55:01,550 Having worked on the license 8971 04:55:01,550 --> 04:55:01,622 cannabis delivery in San Diego. 8972 04:55:01,622 --> 04:55:04,220 I have firsthand seen 8973 04:55:05,260 --> 04:55:05,727 the impact of an illegal market 8974 04:55:05,727 --> 04:55:06,294 Continuing to have legitimate 8975 04:55:06,294 --> 04:55:06,860 business licenses are 8976 04:55:06,860 --> 04:55:08,860 legitimate businesses, 8977 04:55:11,265 --> 04:55:11,866 employees and consumers while 8978 04:55:11,866 --> 04:55:12,499 license operators invest 8979 04:55:12,499 --> 04:55:13,201 significant resources into 8980 04:55:13,201 --> 04:55:16,201 complying with state and local 8981 04:55:17,105 --> 04:55:17,772 regulations regulations. 8982 04:55:17,772 --> 04:55:18,439 Many unlicensed operators 8983 04:55:18,439 --> 04:55:18,940 continue to conduct business 8984 04:55:18,940 --> 04:55:20,940 without oversight 8985 04:55:23,311 --> 04:55:23,744 accountability and 8986 04:55:23,744 --> 04:55:24,378 consequences. 8987 04:55:24,378 --> 04:55:25,460 Licensed cannabis Licensed 8988 04:55:25,460 --> 04:55:28,460 cannabis is required to test 8989 04:55:30,840 --> 04:55:30,818 the products, verify customer 8990 04:55:30,818 --> 04:55:31,452 rage, maintain strict inventory 8991 04:55:31,452 --> 04:55:34,452 controls and pay taxes to 8992 04:55:35,323 --> 04:55:36,900 support our local community. 8993 04:55:36,900 --> 04:55:36,657 Illegal operators do not do 8994 04:55:36,657 --> 04:55:37,358 none of those things. 8995 04:55:37,358 --> 04:55:39,758 They undermine public safety, 8996 04:55:42,980 --> 04:55:42,664 avoid paying taxes and create 8997 04:55:42,664 --> 04:55:43,364 unfair competition for 8998 04:55:43,364 --> 04:55:43,831 businesses that are trying to 8999 04:55:43,831 --> 04:55:44,498 do things right. 9000 04:55:44,498 --> 04:55:48,200 I myself has been a part of 9001 04:55:48,200 --> 04:55:48,669 the cannabis industry for five 9002 04:55:48,669 --> 04:55:49,304 years and over the time I've 9003 04:55:49,304 --> 04:55:49,838 watched them do that does 9004 04:55:49,838 --> 04:55:50,271 conclude your time. 9005 04:55:50,271 --> 04:55:52,271 >> Thank you. 9006 04:55:53,741 --> 04:55:54,442 Thank you. 9007 04:55:54,442 --> 04:55:54,809 Next speaker is Victoria Bush. 9008 04:55:54,809 --> 04:55:55,109 Victoria. 9009 04:55:55,109 --> 04:55:57,109 Here. 9010 04:55:59,614 --> 04:56:00,648 Okay. 9011 04:56:00,648 --> 04:56:04,248 James Case Thank you Counsel My 9012 04:56:05,253 --> 04:56:05,987 time. 9013 04:56:05,987 --> 04:56:06,587 Thank you, Council members. 9014 04:56:06,587 --> 04:56:07,322 My name is James Case. 9015 04:56:07,322 --> 04:56:10,922 I'm a resident of District two 9016 04:56:11,393 --> 04:56:12,260 and I've lived and worked in 9017 04:56:12,260 --> 04:56:12,727 San Diego, the city of San 9018 04:56:12,727 --> 04:56:13,228 Diego for over 30 years since 9019 04:56:13,228 --> 04:56:15,228 SEPTEMBER of 2021. 9020 04:56:17,632 --> 04:56:18,333 I've been a proud member of 9021 04:56:18,333 --> 04:56:19,000 the United Food and Commercial 9022 04:56:19,000 --> 04:56:19,667 Workers Union as a delivery 9023 04:56:19,667 --> 04:56:22,670 driver for legal registered 9024 04:56:23,938 --> 04:56:24,238 cannabis dispensaries San 9025 04:56:24,238 --> 04:56:24,672 Diego. 9026 04:56:24,672 --> 04:56:25,340 I'm not evil. 9027 04:56:25,340 --> 04:56:25,874 I'm a 63 year old grandpa. 9028 04:56:25,874 --> 04:56:28,274 I do my job. 9029 04:56:29,912 --> 04:56:30,578 I love my job And that's four 9030 04:56:30,578 --> 04:56:30,979 and a half years I've been 9031 04:56:30,979 --> 04:56:32,979 doing this. 9032 04:56:34,382 --> 04:56:35,116 I've delivered I've driven over 9033 04:56:35,116 --> 04:56:35,817 100,000 miles on the streets of 9034 04:56:35,817 --> 04:56:36,518 San Diego delivering cannabis. 9035 04:56:36,518 --> 04:56:40,118 And one thing I've learned to 9036 04:56:40,822 --> 04:56:41,423 be here today is it's about 9037 04:56:41,423 --> 04:56:41,790 the money The city needs 9038 04:56:41,790 --> 04:56:42,457 the money. 9039 04:56:42,457 --> 04:56:44,857 Unlicensed operators have no 9040 04:56:46,662 --> 04:56:46,962 incentive to pay business 9041 04:56:46,962 --> 04:56:47,662 taxes. 9042 04:56:47,662 --> 04:56:50,662 Those business taxes not only 9043 04:56:52,467 --> 04:56:53,134 fund the works of the city, 9044 04:56:53,134 --> 04:56:53,801 those operators also provide 9045 04:56:53,801 --> 04:56:57,401 good jobs like my union job 9046 04:56:58,273 --> 04:56:58,874 where the people who have those 9047 04:56:58,874 --> 04:56:59,474 jobs spend that money in 9048 04:56:59,474 --> 04:57:02,474 the county in the city. 9049 04:57:05,947 --> 04:57:06,581 So those dollars not only thank 9050 04:57:06,581 --> 04:57:07,150 that does the county help 9051 04:57:07,150 --> 04:57:09,150 the community? 9052 04:57:11,586 --> 04:57:12,154 Next speaker is Nate Furman. 9053 04:57:12,154 --> 04:57:13,121 Don't see Nate here. 9054 04:57:13,121 --> 04:57:16,721 I will go to allegedly order 9055 04:57:16,724 --> 04:57:17,426 next please smile. 9056 04:57:17,426 --> 04:57:20,426 Just coming to the microphone 9057 04:57:22,397 --> 04:57:23,131 Todd Walters grant Tom, Robert 9058 04:57:23,131 --> 04:57:26,131 Wood, Larry Beekman and Eduardo 9059 04:57:27,703 --> 04:57:28,303 Battista Please come to talk 9060 04:57:28,303 --> 04:57:29,710 about a war on drugs. 9061 04:57:29,710 --> 04:57:29,771 Did you guys ever think you'd 9062 04:57:29,771 --> 04:57:32,171 be micromanaging drug turf 9063 04:57:34,109 --> 04:57:34,409 competition and stuff like 9064 04:57:34,409 --> 04:57:34,910 that? 9065 04:57:34,910 --> 04:57:35,210 How cool is that? 9066 04:57:35,210 --> 04:57:35,777 Right? 9067 04:57:35,777 --> 04:57:36,245 It used to be illegal. 9068 04:57:36,245 --> 04:57:38,245 Now it's not. 9069 04:57:38,680 --> 04:57:38,980 I mean one day it could be 9070 04:57:38,980 --> 04:57:39,348 again. 9071 04:57:39,348 --> 04:57:40,480 Who knows? 9072 04:57:40,480 --> 04:57:40,782 It's like on the edge of your 9073 04:57:40,782 --> 04:57:43,782 seat which is so interesting 9074 04:57:44,119 --> 04:57:44,519 because people think it's still 9075 04:57:44,519 --> 04:57:46,519 profitable. 9076 04:57:49,892 --> 04:57:50,592 The government has taken like 9077 04:57:50,592 --> 04:57:51,590 $60 billion industry and it's 9078 04:57:51,590 --> 04:57:51,760 like governance. 9079 04:57:51,760 --> 04:57:55,360 >> We heard your daddy I mean 9080 04:57:55,430 --> 04:57:56,298 talk about being able to make 9081 04:57:56,298 --> 04:57:56,665 all the money and not have to 9082 04:57:56,665 --> 04:57:57,399 pay taxes. 9083 04:57:57,399 --> 04:57:58,990 Then you come here like listen, 9084 04:57:58,990 --> 04:58:02,237 we need you to regulate it and 9085 04:58:02,237 --> 04:58:02,871 I do not want these people 9086 04:58:02,871 --> 04:58:03,705 coming into my territory. 9087 04:58:03,705 --> 04:58:06,742 So you guys are going to need 9088 04:58:06,742 --> 04:58:07,709 to regulate that know But this 9089 04:58:07,709 --> 04:58:11,309 is what is so interesting New 9090 04:58:14,150 --> 04:58:14,583 permits you know what I mean? 9091 04:58:14,583 --> 04:58:15,317 It's like I'm sorry. 9092 04:58:15,317 --> 04:58:16,510 I just I don't understand why 9093 04:58:16,510 --> 04:58:19,555 people think it's cool for you 9094 04:58:19,555 --> 04:58:20,255 to come to the government and 9095 04:58:20,255 --> 04:58:23,855 be like what's going to take 9096 04:58:24,793 --> 04:58:25,394 billions of dollars out of my 9097 04:58:25,394 --> 04:58:26,940 pocket like I did? 9098 04:58:26,940 --> 04:58:26,395 >> But good for you guys, 9099 04:58:26,395 --> 04:58:27,329 right? 9100 04:58:27,329 --> 04:58:31,399 And it's supposed to go to city 9101 04:58:31,399 --> 04:58:32,670 services. 9102 04:58:32,670 --> 04:58:32,434 >> Looks like it's working. 9103 04:58:32,434 --> 04:58:33,135 Thank you. 9104 04:58:33,135 --> 04:58:33,936 That does conclude your time. 9105 04:58:33,936 --> 04:58:36,936 Our next speaker is Todd 9106 04:58:39,875 --> 04:58:40,643 Walters. 9107 04:58:40,643 --> 04:58:41,343 Good evening City council and 9108 04:58:41,343 --> 04:58:41,877 city staff and thank you very 9109 04:58:41,877 --> 04:58:42,478 much for your time. 9110 04:58:42,478 --> 04:58:45,478 It's very valuable and I 9111 04:58:46,181 --> 04:58:46,949 respect it. 9112 04:58:46,949 --> 04:58:47,616 Most people aren't aware of it. 9113 04:58:47,616 --> 04:58:48,217 The cannabis legal cannabis 9114 04:58:48,217 --> 04:58:50,617 industry is in trouble. 9115 04:58:52,721 --> 04:58:53,322 It's not doing well. 9116 04:58:53,322 --> 04:58:53,989 The unpermitted cannabis 9117 04:58:53,989 --> 04:58:54,590 delivery services are taking 9118 04:58:54,590 --> 04:58:56,990 business away from those 9119 04:58:58,461 --> 04:58:58,894 licensed retailers who are 9120 04:58:58,894 --> 04:58:59,628 paying taxes. 9121 04:58:59,628 --> 04:59:00,329 The illicit cannabis market can 9122 04:59:00,329 --> 04:59:03,329 treat contributes to a shadow 9123 04:59:04,967 --> 04:59:05,668 economy where wage theft, 9124 04:59:05,668 --> 04:59:06,335 unsafe working conditions and 9125 04:59:06,335 --> 04:59:06,802 labor exploitation are more 9126 04:59:06,802 --> 04:59:08,802 likely to occur. 9127 04:59:10,439 --> 04:59:11,106 Workers in legal cannabis 9128 04:59:11,106 --> 04:59:11,840 industry should not have to 9129 04:59:11,840 --> 04:59:12,508 compete against businesses that 9130 04:59:12,508 --> 04:59:14,908 ignore regulations and avoid 9131 04:59:16,780 --> 04:59:16,812 paying their fair share. 9132 04:59:16,812 --> 04:59:17,446 Stronger licensing requirements 9133 04:59:17,446 --> 04:59:18,114 help ensure that cannabis 9134 04:59:18,114 --> 04:59:20,514 businesses operating in San 9135 04:59:21,751 --> 04:59:22,451 Diego follow the same rules. 9136 04:59:22,451 --> 04:59:23,118 Ensuring operators contribute 9137 04:59:23,118 --> 04:59:26,118 to the cannabis business tax 9138 04:59:28,240 --> 04:59:28,724 helps generate revenue for our 9139 04:59:28,724 --> 04:59:29,191 city essential services which 9140 04:59:29,191 --> 04:59:31,591 we know we need. 9141 04:59:33,329 --> 04:59:34,290 Supporting this ordinance means 9142 04:59:34,290 --> 04:59:34,730 protecting workers responsible 9143 04:59:34,730 --> 04:59:35,398 business and the integrity of 9144 04:59:35,398 --> 04:59:37,398 Senegal's regulated cannabis 9145 04:59:39,101 --> 04:59:39,969 industry. 9146 04:59:39,969 --> 04:59:40,603 In conclusion I just ask you to 9147 04:59:40,603 --> 04:59:41,137 support this ordinance and 9148 04:59:41,137 --> 04:59:41,504 support the workers. 9149 04:59:41,504 --> 04:59:42,872 Thank you. 9150 04:59:42,872 --> 04:59:44,872 Thank you. 9151 04:59:49,545 --> 04:59:50,112 Our next speaker is Grant Tom. 9152 04:59:50,112 --> 04:59:50,880 >> Good evening. 9153 04:59:50,880 --> 04:59:53,280 I'm Grant Tom Secretary 9154 04:59:56,520 --> 04:59:56,752 Treasurer Jacobi Look at 135 I 9155 04:59:56,752 --> 04:59:57,320 represent about 12,000 members 9156 04:59:57,320 --> 04:59:59,320 throughout the county 9157 05:00:01,424 --> 05:00:02,240 everywhere including retail, 9158 05:00:02,240 --> 05:00:02,691 cannabis, medical, kiser 9159 05:00:02,691 --> 05:00:06,291 everything I know the out of 9160 05:00:06,762 --> 05:00:07,363 town companies and listed 9161 05:00:07,363 --> 05:00:08,300 operators of unpermitted 9162 05:00:08,300 --> 05:00:08,731 cannabis businesses that are 9163 05:00:08,731 --> 05:00:11,131 currently operating or harming 9164 05:00:12,502 --> 05:00:13,136 or illegal local cannabis 9165 05:00:13,136 --> 05:00:13,836 industry and operators and 9166 05:00:13,836 --> 05:00:15,836 they're undercutting taxpayers 9167 05:00:18,775 --> 05:00:19,575 but not paying their fair share 9168 05:00:19,575 --> 05:00:20,209 of the cannabis retail tax just 9169 05:00:20,209 --> 05:00:23,209 hurts the workers who are 9170 05:00:24,580 --> 05:00:25,114 causing reduce hours and we've 9171 05:00:25,114 --> 05:00:25,581 had tons of layoffs. 9172 05:00:25,581 --> 05:00:26,215 It's really sad. 9173 05:00:26,215 --> 05:00:26,849 It's important to maintain 9174 05:00:26,849 --> 05:00:29,849 the integrity of your San 9175 05:00:31,188 --> 05:00:31,554 Diego's regulated your cannabis 9176 05:00:31,554 --> 05:00:32,255 industry. 9177 05:00:32,255 --> 05:00:35,255 It's also important to protect 9178 05:00:37,393 --> 05:00:38,127 the workers and the taxpayer. 9179 05:00:38,127 --> 05:00:38,795 This ordinance creates enhanced 9180 05:00:38,795 --> 05:00:41,195 enforcement to protect those 9181 05:00:43,333 --> 05:00:44,660 workers and their families 9182 05:00:44,660 --> 05:00:44,600 including other local high road 9183 05:00:44,600 --> 05:00:46,600 cannabis businesses. 9184 05:00:48,805 --> 05:00:49,439 Please support this ordinance. 9185 05:00:49,439 --> 05:00:49,805 Thank you guys very much. 9186 05:00:49,805 --> 05:00:51,805 Thank you. 9187 05:00:55,378 --> 05:00:55,945 Robert Wood. 9188 05:00:55,945 --> 05:00:56,813 While Robert walks to 9189 05:00:56,813 --> 05:01:00,413 the microphone, I will ask for 9190 05:01:01,284 --> 05:01:01,918 the folks as needed in time to 9191 05:01:01,918 --> 05:01:04,918 please raise my hand when 9192 05:01:05,822 --> 05:01:08,222 called Eduardo Camacho Eduardo 9193 05:01:12,328 --> 05:01:12,729 Livio Marquez No. 9194 05:01:12,729 --> 05:01:14,729 Okay. 9195 05:01:18,735 --> 05:01:19,436 Ada Castaneda okay, So Ada is 9196 05:01:19,436 --> 05:01:23,360 here so you'll have to answer. 9197 05:01:24,407 --> 05:01:24,874 >> Okay? 9198 05:01:24,874 --> 05:01:26,874 >> Doug Okay. 9199 05:01:30,800 --> 05:01:30,947 Thank you. 9200 05:01:30,947 --> 05:01:31,247 First of all, my name is Robert 9201 05:01:31,247 --> 05:01:31,948 Wood. 9202 05:01:31,948 --> 05:01:32,282 I am a citizen of San Diego 9203 05:01:32,282 --> 05:01:34,282 County. 9204 05:01:35,852 --> 05:01:36,419 I was born and raised in 9205 05:01:36,419 --> 05:01:37,287 the city of San Diego. 9206 05:01:37,287 --> 05:01:40,887 I did prison time for selling 9207 05:01:41,157 --> 05:01:41,758 marijuana. 9208 05:01:41,758 --> 05:01:42,459 Now I go throughout 9209 05:01:42,459 --> 05:01:45,459 the community, try to improve 9210 05:01:48,298 --> 05:01:48,865 it in various ways and I'm a 9211 05:01:48,865 --> 05:01:49,232 social equity cannabis 9212 05:01:49,232 --> 05:01:51,232 advocate. 9213 05:01:52,802 --> 05:01:53,436 Would that be I'm one of 9214 05:01:53,436 --> 05:01:54,370 the people he helped build 9215 05:01:54,370 --> 05:01:56,437 the cannabis industry in 9216 05:01:57,574 --> 05:01:58,308 the county of San Diego at one 9217 05:01:58,308 --> 05:01:58,975 point and one of the people who 9218 05:01:58,975 --> 05:01:59,376 went to prison behind it And 9219 05:01:59,376 --> 05:02:01,376 now I'm out. 9220 05:02:03,446 --> 05:02:04,147 I'm ready to do things legally. 9221 05:02:04,147 --> 05:02:04,548 I told five different greens 9222 05:02:04,548 --> 05:02:06,548 one the nba. 9223 05:02:08,652 --> 05:02:09,419 I understand barriers to entry, 9224 05:02:09,419 --> 05:02:10,860 barriers to entry be it dealt 9225 05:02:10,860 --> 05:02:13,860 with Businesses want to keep 9226 05:02:14,900 --> 05:02:14,791 people out of something they 9227 05:02:14,791 --> 05:02:15,492 come up with ridiculous like 9228 05:02:15,492 --> 05:02:16,226 this ridiculousness like this. 9229 05:02:16,226 --> 05:02:19,826 They come up with things where 9230 05:02:20,297 --> 05:02:21,310 they say Oh you're probably 9231 05:02:21,310 --> 05:02:21,831 right too soon so you can just 9232 05:02:21,831 --> 05:02:24,831 personally sue me into oblivion 9233 05:02:25,335 --> 05:02:26,202 yourself. 9234 05:02:26,202 --> 05:02:26,636 You don't need anybody else to 9235 05:02:26,636 --> 05:02:27,337 do it for you. 9236 05:02:27,337 --> 05:02:30,937 This is this is this is 9237 05:02:31,742 --> 05:02:32,442 incredible to me. 9238 05:02:32,442 --> 05:02:33,143 The people in the San Diego 9239 05:02:33,143 --> 05:02:35,543 Social Equity Cannabis program 9240 05:02:37,547 --> 05:02:38,314 are people from San Diego. 9241 05:02:38,314 --> 05:02:39,116 We all arrested in San Diego 9242 05:02:39,116 --> 05:02:42,116 for cannabis at some point 9243 05:02:43,920 --> 05:02:44,587 Social equity cannabis. 9244 05:02:44,587 --> 05:02:44,921 It's just that is social 9245 05:02:44,921 --> 05:02:45,822 equity. 9246 05:02:45,822 --> 05:02:50,220 Do you think that any of these 9247 05:02:51,295 --> 05:02:51,962 businesses that got together it 9248 05:02:51,962 --> 05:02:54,962 concocted this that one time 9249 05:02:56,599 --> 05:02:57,367 about such work I can't see one 9250 05:02:57,367 --> 05:02:57,968 facing one of these owners in 9251 05:02:57,968 --> 05:02:58,669 here that came down to 9252 05:02:58,669 --> 05:03:01,669 the social equity program and 9253 05:03:03,207 --> 05:03:03,940 took the time to talk to us and 9254 05:03:03,940 --> 05:03:04,608 try in equities you would think 9255 05:03:04,608 --> 05:03:07,608 that they would be embracing 9256 05:03:07,610 --> 05:03:08,511 this, trying to work at it and 9257 05:03:08,511 --> 05:03:08,979 saying you got to try to get 9258 05:03:08,979 --> 05:03:09,780 into this Cool. 9259 05:03:09,780 --> 05:03:13,650 Let us see what we can do to 9260 05:03:13,650 --> 05:03:14,351 help you guys If they take 9261 05:03:14,351 --> 05:03:17,951 tooth and nail the whole time, 9262 05:03:20,190 --> 05:03:20,858 it's time that the game stop is 9263 05:03:20,858 --> 05:03:21,592 time that this gets torn up, 9264 05:03:21,592 --> 05:03:25,192 that the barriers to entry stop 9265 05:03:25,262 --> 05:03:25,963 and social equity is treated 9266 05:03:25,963 --> 05:03:26,563 like we're just supposed to be 9267 05:03:26,563 --> 05:03:28,563 sociable and equitable. 9268 05:03:29,166 --> 05:03:29,666 >> Thank you. 9269 05:03:29,666 --> 05:03:31,666 >> Thank you. 9270 05:03:42,146 --> 05:03:42,546 Blair Beekman. 9271 05:03:42,546 --> 05:03:42,913 All right. 9272 05:03:42,913 --> 05:03:43,414 Thank you. 9273 05:03:43,414 --> 05:03:45,414 Where we going? 9274 05:03:47,551 --> 05:03:47,918 I have not known much about 9275 05:03:47,918 --> 05:03:48,652 this item. 9276 05:03:48,652 --> 05:03:48,986 It was a learning process for 9277 05:03:48,986 --> 05:03:49,687 myself. 9278 05:03:49,687 --> 05:03:52,687 I really like hearing public 9279 05:03:53,524 --> 05:03:54,224 comment on it about the social 9280 05:03:54,224 --> 05:03:58,424 equity lack that seems to be a 9281 05:03:59,430 --> 05:04:00,264 part of this. 9282 05:04:00,264 --> 05:04:00,964 We try to make up rules and 9283 05:04:00,964 --> 05:04:04,564 laws sometimes that we feel is 9284 05:04:05,102 --> 05:04:05,803 just gosh darn good, you know 9285 05:04:05,803 --> 05:04:09,403 and we're doing a good thing. 9286 05:04:10,207 --> 05:04:10,875 It has a logic to it is a good 9287 05:04:10,875 --> 05:04:13,875 logic but that logic doesn't 9288 05:04:15,813 --> 05:04:16,347 take into account what maybe is 9289 05:04:16,347 --> 05:04:17,810 going on underneath. 9290 05:04:17,810 --> 05:04:17,848 This is a group that seems to 9291 05:04:17,848 --> 05:04:21,448 have some sort of real thing 9292 05:04:21,552 --> 05:04:25,152 going on in wanting to nail 9293 05:04:27,591 --> 05:04:28,292 social equity with marijuana 9294 05:04:28,292 --> 05:04:28,659 purchases and how that process 9295 05:04:28,659 --> 05:04:29,460 can work. 9296 05:04:29,460 --> 05:04:32,460 I mean Oakland has always 9297 05:04:34,331 --> 05:04:34,764 created really good examples of 9298 05:04:34,764 --> 05:04:35,599 social equity. 9299 05:04:35,599 --> 05:04:39,799 Perhaps you can talk to them at 9300 05:04:40,438 --> 05:04:41,105 this time at this needs a bit 9301 05:04:41,105 --> 05:04:41,672 of more review and work it 9302 05:04:41,672 --> 05:04:44,720 sounds like Thank you. 9303 05:04:45,443 --> 05:04:46,143 >> Thank you Eduardo Batista 9304 05:04:46,143 --> 05:04:49,143 followed by Anthony Ralphs and 9305 05:04:50,848 --> 05:04:51,582 more so Daniel. 9306 05:04:51,582 --> 05:04:54,582 Good evening Council members My 9307 05:04:56,720 --> 05:04:57,321 name is Eduardo Batista and I 9308 05:04:57,321 --> 05:04:57,988 respectfully oppose this 9309 05:04:57,988 --> 05:04:58,589 cannabis delivery proposal. 9310 05:04:58,589 --> 05:05:00,989 I support legal cannabis 9311 05:05:02,159 --> 05:05:02,760 businesses paying taxes 9312 05:05:02,760 --> 05:05:03,327 following the rules and 9313 05:05:03,327 --> 05:05:04,280 operating responsibly. 9314 05:05:04,280 --> 05:05:07,280 But this proposal goes beyond 9315 05:05:07,265 --> 05:05:07,931 fair regulation. 9316 05:05:07,931 --> 05:05:08,666 It creates new barriers for 9317 05:05:08,666 --> 05:05:09,267 licensed delivery operators and 9318 05:05:09,267 --> 05:05:11,267 gives existing cannabis 9319 05:05:13,270 --> 05:05:13,871 retailers the ability to use 9320 05:05:13,871 --> 05:05:14,272 private lawsuits against 9321 05:05:14,272 --> 05:05:16,272 competitors. 9322 05:05:18,420 --> 05:05:18,776 So weaponizing it This is 9323 05:05:18,776 --> 05:05:19,443 dangerous for small businesses, 9324 05:05:19,443 --> 05:05:20,144 county operators and future 9325 05:05:20,144 --> 05:05:22,544 social equity businesses that 9326 05:05:23,981 --> 05:05:24,649 MAY not have the resources to 9327 05:05:24,649 --> 05:05:25,349 fight expensive litigation. 9328 05:05:25,349 --> 05:05:28,949 Even a threat of lawsuit can 9329 05:05:29,687 --> 05:05:30,121 discourage competition and 9330 05:05:30,121 --> 05:05:30,788 limit access. 9331 05:05:30,788 --> 05:05:31,489 You can also look California 9332 05:05:31,489 --> 05:05:33,889 Motor Transport Company where 9333 05:05:35,526 --> 05:05:36,194 trucking Unlimited and I think 9334 05:05:36,194 --> 05:05:39,794 that covers kind of that If 9335 05:05:40,531 --> 05:05:41,199 the concern is tax compliance, 9336 05:05:41,199 --> 05:05:41,666 create a simple registration 9337 05:05:41,666 --> 05:05:42,400 and tax process. 9338 05:05:42,400 --> 05:05:45,400 If concern is illegal operators 9339 05:05:45,837 --> 05:05:46,503 focus enforcement on unlicensed 9340 05:05:46,503 --> 05:05:47,205 activity but do not create a 9341 05:05:47,205 --> 05:05:49,605 system that allows established 9342 05:05:51,442 --> 05:05:52,109 businesses to weaponize 9343 05:05:52,109 --> 05:05:52,510 enforcement against licensed 9344 05:05:52,510 --> 05:05:53,177 competitors. 9345 05:05:53,177 --> 05:05:56,247 I urge the Council to reject 9346 05:05:56,247 --> 05:05:56,714 this proposal. 9347 05:05:56,714 --> 05:05:57,415 >> Thank you. 9348 05:05:57,415 --> 05:06:00,415 That does conclude your time. 9349 05:06:01,919 --> 05:06:02,554 Anthony Ralphs Yes I had 9350 05:06:02,554 --> 05:06:05,554 submitted want to speak in 9351 05:06:06,858 --> 05:06:07,558 favor but after hearing 9352 05:06:07,558 --> 05:06:08,426 the deliberation I think I'm 9353 05:06:08,426 --> 05:06:11,930 going to change to speak in 9354 05:06:11,930 --> 05:06:13,930 opposition. 9355 05:06:17,672 --> 05:06:18,436 >> The reason why I am changing 9356 05:06:18,436 --> 05:06:19,137 my position from going in favor 9357 05:06:19,137 --> 05:06:22,737 to in opposition is because I 9358 05:06:22,740 --> 05:06:23,208 do think that regulation has 9359 05:06:23,208 --> 05:06:25,208 good intentions. 9360 05:06:27,445 --> 05:06:28,112 I do want to see delivery 9361 05:06:28,112 --> 05:06:28,847 drivers have the ability to 9362 05:06:28,847 --> 05:06:29,581 have some type of guidelines by 9363 05:06:29,581 --> 05:06:33,218 the city as to what they can do 9364 05:06:33,218 --> 05:06:34,520 and what they can't do. 9365 05:06:34,520 --> 05:06:34,586 However, I was really concerned 9366 05:06:34,586 --> 05:06:35,253 about the amount of 9367 05:06:35,253 --> 05:06:38,253 the penalties that would be 9368 05:06:38,490 --> 05:06:39,357 imposed The $20,000 a day just 9369 05:06:39,357 --> 05:06:40,258 like none of us are made out of 9370 05:06:40,258 --> 05:06:43,858 gold and we all make mistakes 9371 05:06:44,129 --> 05:06:47,129 and $20,000 to be out of 9372 05:06:48,933 --> 05:06:49,600 compliance or to have made a 9373 05:06:49,600 --> 05:06:52,000 mistake with the regulations 9374 05:06:53,772 --> 05:06:54,380 just seems really excessive to 9375 05:06:54,380 --> 05:06:54,839 me. 9376 05:06:54,839 --> 05:06:59,390 And also I think that if there 9377 05:06:59,277 --> 05:06:59,978 is a confliction a conflict 9378 05:06:59,978 --> 05:07:02,378 between the socially equitable 9379 05:07:03,140 --> 05:07:03,715 cannabis program and this one I 9380 05:07:03,715 --> 05:07:04,282 think I would rather go with 9381 05:07:04,282 --> 05:07:04,783 the socially equitable 9382 05:07:04,783 --> 05:07:05,150 community program. 9383 05:07:05,150 --> 05:07:05,517 Thank you. 9384 05:07:05,517 --> 05:07:07,517 Thank you. 9385 05:07:07,719 --> 05:07:10,719 Lori Saldana you actually cut 9386 05:07:13,358 --> 05:07:14,590 off some of his time but let me 9387 05:07:14,590 --> 05:07:14,526 just start out by saying what 9388 05:07:14,526 --> 05:07:16,526 Terry Bell said. 9389 05:07:18,196 --> 05:07:18,796 MR. Campos shame on you and 9390 05:07:18,796 --> 05:07:19,497 your committee members. 9391 05:07:19,497 --> 05:07:22,400 You were putting a loaded gun 9392 05:07:22,400 --> 05:07:23,670 in the hands of people to go 9393 05:07:23,670 --> 05:07:23,768 after folks who have been 9394 05:07:23,768 --> 05:07:24,202 historically disadvantaged in 9395 05:07:24,202 --> 05:07:26,202 this industry. 9396 05:07:27,973 --> 05:07:28,640 When I served the legislature I 9397 05:07:28,640 --> 05:07:29,307 wrote bills to do the exact 9398 05:07:29,307 --> 05:07:32,307 opposite to try and prevent 9399 05:07:32,679 --> 05:07:33,411 this kind of cherry picking and 9400 05:07:33,411 --> 05:07:34,790 I'm going to stick around for a 9401 05:07:34,790 --> 05:07:37,679 non agenda comment so I can 9402 05:07:38,150 --> 05:07:38,850 speak a little bit more about 9403 05:07:38,850 --> 05:07:39,518 what if other industries took 9404 05:07:39,518 --> 05:07:42,518 this approach What if other 9405 05:07:42,821 --> 05:07:43,522 indices were given a gun and 9406 05:07:43,522 --> 05:07:44,222 said you can do private action 9407 05:07:44,222 --> 05:07:47,920 and go after these opponents? 9408 05:07:47,920 --> 05:07:47,459 Are these competitors It would 9409 05:07:47,459 --> 05:07:49,459 be mayhem. 9410 05:07:51,530 --> 05:07:52,197 Shame on you. 9411 05:07:52,197 --> 05:07:52,964 Shame on you MR. Foster. 9412 05:07:52,964 --> 05:07:56,564 You know how this community has 9413 05:07:57,350 --> 05:07:57,736 been hurt so I just don't 9414 05:07:57,736 --> 05:07:58,269 understand why you're picking 9415 05:07:58,269 --> 05:07:58,603 winners and losers. 9416 05:07:58,603 --> 05:07:58,904 I wait. 9417 05:07:58,904 --> 05:08:00,904 I do. 9418 05:08:01,807 --> 05:08:02,407 Who has money? 9419 05:08:02,407 --> 05:08:02,974 Who gives money to 9420 05:08:02,974 --> 05:08:03,642 the Democratic Party? 9421 05:08:03,642 --> 05:08:04,242 Who gives money to the party 9422 05:08:04,242 --> 05:08:06,445 and then passes it on to 9423 05:08:06,445 --> 05:08:07,112 candidates? 9424 05:08:07,112 --> 05:08:10,112 >> The people that you are 9425 05:08:11,550 --> 05:08:12,500 favoring on this Shame on you. 9426 05:08:12,500 --> 05:08:12,751 >> Thank you. 9427 05:08:12,751 --> 05:08:15,751 That does conclude your time. 9428 05:08:16,188 --> 05:08:16,521 That concludes in-person public 9429 05:08:16,521 --> 05:08:18,521 comment. 9430 05:08:20,920 --> 05:08:20,826 We have started the five minute 9431 05:08:20,826 --> 05:08:21,526 timer and council chambers will 9432 05:08:21,526 --> 05:08:23,829 now turn to the virtual queue 9433 05:08:23,829 --> 05:08:24,462 in which there are ten 9434 05:08:24,462 --> 05:08:24,762 participants requesting to 9435 05:08:24,762 --> 05:08:26,762 speak. 9436 05:08:28,534 --> 05:08:28,867 We'll begin with Terry and 9437 05:08:28,867 --> 05:08:30,867 Skelly. 9438 05:08:33,338 --> 05:08:34,390 Please begin. 9439 05:08:34,390 --> 05:08:36,439 >> Good afternoon San Diego 9440 05:08:38,177 --> 05:08:38,977 City Council Chair LaCava My 9441 05:08:38,977 --> 05:08:39,678 name is Terrance Fili and I 9442 05:08:39,678 --> 05:08:42,314 work with my planning group on 9443 05:08:42,314 --> 05:08:42,915 good public health and safety 9444 05:08:42,915 --> 05:08:43,281 policies and land use 9445 05:08:43,281 --> 05:08:43,849 decisions. 9446 05:08:43,849 --> 05:08:46,249 I support this policy. 9447 05:08:47,453 --> 05:08:48,253 I appreciate the city's effort 9448 05:08:48,253 --> 05:08:52,230 to know who is selling pot in 9449 05:08:52,230 --> 05:08:52,691 our city and where the pot is 9450 05:08:52,691 --> 05:08:53,292 coming from since it doesn't 9451 05:08:53,292 --> 05:08:56,292 seem to have a physical 9452 05:08:56,796 --> 05:08:57,596 location within the city, this 9453 05:08:57,596 --> 05:08:58,364 is a very good thing We should 9454 05:08:58,364 --> 05:09:01,266 be aware of actual actually 9455 05:09:01,266 --> 05:09:01,900 being successful collecting 9456 05:09:01,900 --> 05:09:04,300 cannabis business tax and 9457 05:09:06,138 --> 05:09:06,772 perhaps also remember that 9458 05:09:06,772 --> 05:09:07,473 the comment by a physician 9459 05:09:07,473 --> 05:09:09,873 trained in emergency medicine 9460 05:09:10,943 --> 05:09:11,643 pediatrics and family practice 9461 05:09:11,643 --> 05:09:15,130 and I quote It's ridiculous to 9462 05:09:15,130 --> 05:09:15,815 think that any city or county 9463 05:09:15,815 --> 05:09:19,415 will make it will make excess 9464 05:09:19,685 --> 05:09:20,285 funds in tax revenue from 9465 05:09:20,285 --> 05:09:20,653 the selling of addictive 9466 05:09:20,653 --> 05:09:21,387 products. 9467 05:09:21,387 --> 05:09:24,757 The money being brought in does 9468 05:09:24,757 --> 05:09:25,323 not cover the costs of 9469 05:09:25,323 --> 05:09:25,991 addiction of addiction 9470 05:09:25,991 --> 05:09:28,991 treatment let alone any any 9471 05:09:29,462 --> 05:09:30,196 other harm psychosis, cannabis 9472 05:09:30,196 --> 05:09:32,196 hyperemesis pediatric exposures 9473 05:09:35,100 --> 05:09:35,734 and injuries while intoxicated. 9474 05:09:35,734 --> 05:09:36,680 Thank you for hearing my 9475 05:09:36,680 --> 05:09:38,680 concern. 9476 05:09:40,172 --> 05:09:41,400 Thank you. 9477 05:09:41,400 --> 05:09:44,400 Our next speakers and Albania's 9478 05:09:53,152 --> 05:09:55,152 please begin. 9479 05:10:00,920 --> 05:10:00,793 >> Andrew Ibanez I cannot 9480 05:10:00,793 --> 05:10:01,193 unmute for you must press on 9481 05:10:01,193 --> 05:10:03,193 Hear me? 9482 05:10:03,529 --> 05:10:04,290 Yup Go ahead please. 9483 05:10:04,290 --> 05:10:04,463 >> Thank you. 9484 05:10:04,463 --> 05:10:06,463 Good evening. 9485 05:10:08,534 --> 05:10:09,335 Presenter and council members. 9486 05:10:09,335 --> 05:10:10,102 My name is Andrew Ibanez. 9487 05:10:10,102 --> 05:10:10,970 I lived in District four for 39 9488 05:10:10,970 --> 05:10:12,805 years and I'm a cannabis social 9489 05:10:12,805 --> 05:10:13,406 equity applicant. 9490 05:10:13,406 --> 05:10:14,106 I oppose the proposal. 9491 05:10:14,106 --> 05:10:16,506 I support maintaining expanded 9492 05:10:17,977 --> 05:10:18,644 access to cannabis delivery 9493 05:10:18,644 --> 05:10:18,944 services in the city of San 9494 05:10:18,944 --> 05:10:20,944 Diego. 9495 05:10:22,415 --> 05:10:23,490 Cannabis delivery provides a 9496 05:10:23,490 --> 05:10:23,716 safe, convenient and legal 9497 05:10:23,716 --> 05:10:26,116 option for adults, seniors, 9498 05:10:27,220 --> 05:10:27,853 people with disabilities, 9499 05:10:27,853 --> 05:10:28,554 veterans and patients and 9500 05:10:28,554 --> 05:10:30,954 residents who have difficulty 9501 05:10:31,891 --> 05:10:32,291 traveling to a dispensary or a 9502 05:10:32,291 --> 05:10:32,892 storefront. 9503 05:10:32,892 --> 05:10:34,892 Delivery services allows 9504 05:10:36,696 --> 05:10:37,463 consumers to receive product at 9505 05:10:37,463 --> 05:10:37,930 home rather than driving to a 9506 05:10:37,930 --> 05:10:39,930 retail location. 9507 05:10:41,670 --> 05:10:41,734 Licensed delivery operators are 9508 05:10:41,734 --> 05:10:42,435 regulated subject to testing 9509 05:10:42,435 --> 05:10:43,690 and tracking requirements and 9510 05:10:43,690 --> 05:10:45,469 contribute tax revenue to 9511 05:10:45,972 --> 05:10:46,572 the city. 9512 05:10:46,572 --> 05:10:47,173 Policy should encourage 9513 05:10:47,173 --> 05:10:47,840 consumers to the to use 9514 05:10:47,840 --> 05:10:50,240 the regulated market rather 9515 05:10:50,810 --> 05:10:51,511 than care or create barriers 9516 05:10:51,511 --> 05:10:53,911 that MAY unintentionally push 9517 05:10:55,348 --> 05:10:55,715 customers toward unlicensed 9518 05:10:55,715 --> 05:10:56,349 operators. 9519 05:10:56,349 --> 05:10:57,830 As the city considers new 9520 05:10:57,830 --> 05:11:00,830 regulations, I encourage you to 9521 05:11:01,530 --> 05:11:01,721 support a framework that 9522 05:11:01,721 --> 05:11:02,455 protects public safety while 9523 05:11:02,455 --> 05:11:04,855 preserving reasonable access to 9524 05:11:06,192 --> 05:11:06,559 legal cannabis delivery 9525 05:11:06,559 --> 05:11:07,193 services. 9526 05:11:07,193 --> 05:11:07,827 Regulation should be fair, 9527 05:11:07,827 --> 05:11:08,360 practical and designed to 9528 05:11:08,360 --> 05:11:10,360 promote compliance. 9529 05:11:10,530 --> 05:11:11,197 Thank you. 9530 05:11:11,197 --> 05:11:11,497 >> That does conclude your 9531 05:11:11,497 --> 05:11:13,497 time. 9532 05:11:17,337 --> 05:11:17,637 Madison please begin. 9533 05:11:17,637 --> 05:11:18,700 Hi. 9534 05:11:18,700 --> 05:11:20,700 Good evening. 9535 05:11:21,874 --> 05:11:22,175 Thank you for the chance to 9536 05:11:22,175 --> 05:11:22,775 speak. 9537 05:11:22,775 --> 05:11:23,476 I support this ordinance 9538 05:11:23,476 --> 05:11:25,876 because strong enforcement of 9539 05:11:27,146 --> 05:11:27,847 cannabis regulations is 9540 05:11:27,847 --> 05:11:28,381 essential to protecting young 9541 05:11:28,381 --> 05:11:30,781 people in our city. 9542 05:11:32,180 --> 05:11:32,685 We are not talking about 9543 05:11:32,685 --> 05:11:33,453 delivery of ice cream here. 9544 05:11:33,453 --> 05:11:37,530 When delivery of a drug like 9545 05:11:37,157 --> 05:11:37,724 cannabis is allowed it means 9546 05:11:37,724 --> 05:11:38,429 products are spreading 9547 05:11:38,429 --> 05:11:39,125 throughout our community that 9548 05:11:39,125 --> 05:11:41,525 contain extremely high levels 9549 05:11:42,428 --> 05:11:43,960 of thc and have been linked to 9550 05:11:43,960 --> 05:11:45,496 increased risks of psychosis 9551 05:11:46,533 --> 05:11:47,200 cannabis use disorder, cyclic 9552 05:11:47,200 --> 05:11:47,834 vomiting syndrome, impaired 9553 05:11:47,834 --> 05:11:50,234 driving and other serious 9554 05:11:51,403 --> 05:11:51,871 health concerns particularly 9555 05:11:51,871 --> 05:11:53,871 for adolescents. 9556 05:11:55,875 --> 05:11:56,176 That is why enforcement matters 9557 05:11:56,176 --> 05:11:56,776 . 9558 05:11:56,776 --> 05:11:57,377 Creating a local permit 9559 05:11:57,377 --> 05:11:59,377 requirement for cannabis 9560 05:12:00,847 --> 05:12:01,548 delivery businesses gives 9561 05:12:01,548 --> 05:12:02,248 the city a tool to identify 9562 05:12:02,248 --> 05:12:04,248 operators, monitor compliance 9563 05:12:06,850 --> 05:12:06,419 and take action When violation 9564 05:12:06,419 --> 05:12:07,530 occurs. 9565 05:12:07,530 --> 05:12:09,453 Strong penalties are also 9566 05:12:11,570 --> 05:12:11,757 important because regulations 9567 05:12:11,757 --> 05:12:12,358 without meaningful enforcement 9568 05:12:12,358 --> 05:12:14,358 are simply suggestions. 9569 05:12:16,290 --> 05:12:16,663 Every gap in enforcement 9570 05:12:16,663 --> 05:12:17,397 creates opportunities for 9571 05:12:17,397 --> 05:12:19,797 unlawful activity and increases 9572 05:12:21,201 --> 05:12:21,935 the risk that harmful cannabis 9573 05:12:21,935 --> 05:12:22,369 products will reach our youth. 9574 05:12:22,369 --> 05:12:22,769 >> Thank you. 9575 05:12:22,769 --> 05:12:24,769 Thank you. 9576 05:12:25,380 --> 05:12:27,438 Next is Becky Wrap. 9577 05:12:39,752 --> 05:12:40,420 Please begin. 9578 05:12:40,420 --> 05:12:42,820 My name is back. 9579 05:12:45,910 --> 05:12:45,792 You up and I'm very concerned. 9580 05:12:45,792 --> 05:12:48,192 The city is considering 9581 05:12:48,929 --> 05:12:50,929 expanding delivery regulations 9582 05:12:53,733 --> 05:12:54,434 before providing or proving 9583 05:12:54,434 --> 05:12:55,680 that existing regulations have 9584 05:12:55,680 --> 05:12:57,680 been effectively enforced. 9585 05:12:58,405 --> 05:12:59,380 For years residents have been 9586 05:12:59,380 --> 05:12:59,740 requesting a comprehensive 9587 05:12:59,740 --> 05:13:02,740 audit of San Diego's marijuana 9588 05:13:03,677 --> 05:13:04,244 program including the number of 9589 05:13:04,244 --> 05:13:04,978 businesses operating, 9590 05:13:04,978 --> 05:13:05,545 the amount of tax revenue being 9591 05:13:05,545 --> 05:13:07,545 collected and whether 9592 05:13:08,215 --> 05:13:08,715 businesses are complying with 9593 05:13:08,715 --> 05:13:09,282 local regulations. 9594 05:13:09,282 --> 05:13:11,282 This report repeatedly 9595 05:13:12,819 --> 05:13:13,453 references noncompliance but 9596 05:13:13,453 --> 05:13:14,120 does not include important 9597 05:13:14,120 --> 05:13:16,520 enforcement data to support 9598 05:13:17,691 --> 05:13:18,191 the need that this new permit 9599 05:13:18,191 --> 05:13:18,959 program is needed. 9600 05:13:18,959 --> 05:13:21,959 How many violations have been 9601 05:13:22,996 --> 05:13:23,763 identified? 9602 05:13:23,763 --> 05:13:24,131 How much unpaid tax has been 9603 05:13:24,131 --> 05:13:24,865 recovered? 9604 05:13:24,865 --> 05:13:27,401 And the delivery operators have 9605 05:13:27,401 --> 05:13:28,168 been investigating. 9606 05:13:28,168 --> 05:13:28,969 A report doesn't tell us that 9607 05:13:28,969 --> 05:13:31,969 before creating new permits and 9608 05:13:32,573 --> 05:13:32,940 expanding the city's marijuana 9609 05:13:32,940 --> 05:13:33,674 framework. 9610 05:13:33,674 --> 05:13:37,144 The city should first provide a 9611 05:13:37,144 --> 05:13:37,477 full accounting of the current 9612 05:13:37,477 --> 05:13:38,780 system. 9613 05:13:38,780 --> 05:13:38,679 If we don't know whether 9614 05:13:38,679 --> 05:13:40,679 existing businesses are 9615 05:13:41,749 --> 05:13:42,382 complying with the rules or 9616 05:13:42,382 --> 05:13:42,950 paying the taxes they owe. 9617 05:13:42,950 --> 05:13:43,317 >> How can we justify 9618 05:13:43,317 --> 05:13:43,684 expanding? 9619 05:13:43,684 --> 05:13:45,684 Thank you. 9620 05:13:48,989 --> 05:13:49,756 That is include your time. 9621 05:13:49,756 --> 05:13:52,756 >> Please note that the five 9622 05:13:54,940 --> 05:13:54,828 minute timer has concluded with 9623 05:13:54,828 --> 05:13:58,428 six speakers left in the queue. 9624 05:13:58,899 --> 05:13:59,199 No other speakers will be taken 9625 05:13:59,199 --> 05:13:59,900 . 9626 05:13:59,900 --> 05:14:02,900 Next up is Peggy Walker. 9627 05:14:03,570 --> 05:14:05,570 Please begin. 9628 05:14:08,542 --> 05:14:08,842 Oh, good evening, COUNCILMAN 9629 05:14:08,842 --> 05:14:09,543 Campo. 9630 05:14:09,543 --> 05:14:10,110 I represent parents and thank 9631 05:14:10,110 --> 05:14:12,510 you and support this. 9632 05:14:13,981 --> 05:14:14,648 Strict controls are needed 9633 05:14:14,648 --> 05:14:17,648 because bad players on both 9634 05:14:18,152 --> 05:14:18,752 the seller and consumer sides 9635 05:14:18,752 --> 05:14:19,186 ignore illegal delivery 9636 05:14:19,186 --> 05:14:21,186 requirements. 9637 05:14:22,957 --> 05:14:23,624 Delivery services Too often 9638 05:14:23,624 --> 05:14:24,325 cheat the city of taxes put 9639 05:14:24,325 --> 05:14:27,325 youth in jeopardy of harmful 9640 05:14:28,295 --> 05:14:28,996 underage use, fail to make I.D. 9641 05:14:28,996 --> 05:14:29,530 Checks and deliver quantities 9642 05:14:29,530 --> 05:14:31,930 not allowed by state 9643 05:14:32,799 --> 05:14:33,667 regulations. 9644 05:14:33,667 --> 05:14:37,137 A Bay Area delivery company was 9645 05:14:37,137 --> 05:14:37,738 recently exposed for leaking 9646 05:14:37,738 --> 05:14:39,738 their delivery databases 9647 05:14:42,900 --> 05:14:42,710 containing customer names, home 9648 05:14:42,710 --> 05:14:45,110 addresses, even medical data. 9649 05:14:47,114 --> 05:14:47,581 Consumers should be made aware 9650 05:14:47,581 --> 05:14:48,282 of these risks. 9651 05:14:48,282 --> 05:14:51,282 An official list posted online 9652 05:14:52,253 --> 05:14:52,887 of all future San Diego license 9653 05:14:52,887 --> 05:14:55,287 delivery services would be 9654 05:14:57,910 --> 05:14:57,792 helpful so that consumers can 9655 05:14:57,792 --> 05:14:58,392 know that their deliveries are 9656 05:14:58,392 --> 05:15:00,392 from permitted vendors. 9657 05:15:02,329 --> 05:15:04,329 Thank you. 9658 05:15:07,501 --> 05:15:08,168 >> Thank you. 9659 05:15:08,168 --> 05:15:11,168 Next up is Peggy Walker. 9660 05:15:15,409 --> 05:15:15,810 Please begin. 9661 05:15:15,810 --> 05:15:16,277 >> Hi. 9662 05:15:16,277 --> 05:15:16,777 That was me. 9663 05:15:16,777 --> 05:15:17,770 I just spoke. 9664 05:15:17,770 --> 05:15:19,770 Sorry. 9665 05:15:19,780 --> 05:15:21,780 I apologize. 9666 05:15:21,949 --> 05:15:24,949 Next up is Kathleen Leavitt. 9667 05:15:27,488 --> 05:15:27,989 Please begin. 9668 05:15:27,989 --> 05:15:28,389 >> Thank you. 9669 05:15:28,389 --> 05:15:30,389 Thank you. 9670 05:15:31,859 --> 05:15:32,593 To counsel Patrick Campo for 9671 05:15:32,593 --> 05:15:33,227 his good intentions a proactive 9672 05:15:33,227 --> 05:15:36,227 step that should be taken 9673 05:15:37,640 --> 05:15:37,765 before proposing any additional 9674 05:15:37,765 --> 05:15:41,365 programs like this would be to 9675 05:15:41,936 --> 05:15:42,503 do an analysis of 9676 05:15:42,503 --> 05:15:42,870 the businesses already 9677 05:15:42,870 --> 05:15:43,404 permitted. 9678 05:15:43,404 --> 05:15:45,404 Are they compliant? 9679 05:15:47,208 --> 05:15:47,942 Are they paying their taxes? 9680 05:15:47,942 --> 05:15:48,576 Many businesses already see 9681 05:15:48,576 --> 05:15:50,976 city codes and suggestions 9682 05:15:52,460 --> 05:15:52,780 rather than requirements. 9683 05:15:52,780 --> 05:15:55,780 They do not see meaningful 9684 05:15:56,617 --> 05:15:57,418 consequences to businesses 9685 05:15:57,418 --> 05:15:58,152 found to be out of compliance. 9686 05:15:58,152 --> 05:16:01,152 It is no surprise many 9687 05:16:02,123 --> 05:16:02,723 marijuana businesses have gone 9688 05:16:02,723 --> 05:16:03,291 out of business because 9689 05:16:03,291 --> 05:16:05,291 unpermitted marijuana 9690 05:16:06,994 --> 05:16:07,695 businesses always have and 9691 05:16:07,695 --> 05:16:08,229 always will take business from 9692 05:16:08,229 --> 05:16:10,229 permitted business. 9693 05:16:11,766 --> 05:16:12,500 This permanent undermines 9694 05:16:12,500 --> 05:16:14,900 the city's regulatory framework 9695 05:16:16,404 --> 05:16:16,804 and disadvantages compliant 9696 05:16:16,804 --> 05:16:17,438 businesses. 9697 05:16:17,438 --> 05:16:20,438 That being said, there is 9698 05:16:21,642 --> 05:16:22,343 nothing good about compliant or 9699 05:16:22,343 --> 05:16:23,110 permitted businesses any more 9700 05:16:23,110 --> 05:16:25,110 than unpermitted businesses. 9701 05:16:26,614 --> 05:16:27,482 The rent seeking revenues over 9702 05:16:27,482 --> 05:16:31,820 public safety is never going to 9703 05:16:31,820 --> 05:16:32,487 end well for the city. 9704 05:16:32,487 --> 05:16:32,787 >> That does conclude your 9705 05:16:32,787 --> 05:16:33,154 time. 9706 05:16:33,154 --> 05:16:33,955 Thank you. 9707 05:16:33,955 --> 05:16:37,555 Next up J.D. String Please 9708 05:16:38,592 --> 05:16:39,360 begin. 9709 05:16:39,360 --> 05:16:39,794 >> Good afternoon, San Diego 9710 05:16:39,794 --> 05:16:41,794 City Council. 9711 05:16:44,980 --> 05:16:44,799 Thank you to City Council 9712 05:16:44,799 --> 05:16:47,199 person Carpio for considering 9713 05:16:49,103 --> 05:16:49,436 this at his NOVEMBER adr 9714 05:16:49,436 --> 05:16:50,371 meeting. 9715 05:16:50,371 --> 05:16:53,675 I'm sorry Some of us maybe who 9716 05:16:53,675 --> 05:16:54,208 spoke didn't have an 9717 05:16:54,208 --> 05:16:54,909 opportunity to hear 9718 05:16:54,909 --> 05:16:55,443 the discussion then I think we 9719 05:16:55,443 --> 05:16:57,843 would have a better 9720 05:16:58,346 --> 05:16:58,947 understanding of what the goal 9721 05:16:58,947 --> 05:17:01,347 was behind this policy. 9722 05:17:03,351 --> 05:17:04,152 Some intent to level 9723 05:17:04,152 --> 05:17:07,752 the playing field for those who 9724 05:17:08,689 --> 05:17:09,290 actually have permits in 9725 05:17:09,290 --> 05:17:09,958 the city of San Diego to 9726 05:17:09,958 --> 05:17:12,994 deliver and those who do not 9727 05:17:12,994 --> 05:17:13,661 and are coming in and we don't 9728 05:17:13,661 --> 05:17:14,162 know who they are, where 9729 05:17:14,162 --> 05:17:14,862 they're from, what 9730 05:17:14,862 --> 05:17:17,862 the condition of the products 9731 05:17:18,566 --> 05:17:19,267 are And it looks like and 9732 05:17:19,267 --> 05:17:22,203 the example on the PowerPoint, 9733 05:17:22,203 --> 05:17:22,904 the one given it's not even 9734 05:17:22,904 --> 05:17:25,904 registered by the city, by 9735 05:17:27,242 --> 05:17:28,760 the state, by dcc. 9736 05:17:28,760 --> 05:17:28,777 So we need to really understand 9737 05:17:28,777 --> 05:17:32,114 who it is just driving around 9738 05:17:32,114 --> 05:17:32,414 our neighborhoods, dropping off 9739 05:17:32,414 --> 05:17:33,281 pot. 9740 05:17:33,281 --> 05:17:36,418 I must say, however, in doing a 9741 05:17:36,418 --> 05:17:37,185 search I found the city of 9742 05:17:37,185 --> 05:17:40,785 Oceanside tried to do the same 9743 05:17:41,523 --> 05:17:42,257 thing and get a registry of 9744 05:17:42,257 --> 05:17:42,524 deliveries and then when signed 9745 05:17:42,524 --> 05:17:42,958 out. 9746 05:17:42,958 --> 05:17:44,958 >> Thank you. 9747 05:17:45,760 --> 05:17:46,494 That does conclude your time. 9748 05:17:46,494 --> 05:17:46,828 Next is Cannabis Education 9749 05:17:46,828 --> 05:17:48,828 Project. 9750 05:18:00,750 --> 05:18:00,408 Please begin Cannabis Education 9751 05:18:00,408 --> 05:18:02,408 Project. 9752 05:18:03,110 --> 05:18:05,110 Please begin. 9753 05:18:12,787 --> 05:18:15,187 I see you're unmuted. 9754 05:18:16,825 --> 05:18:19,225 One more time Cannabis 9755 05:18:21,429 --> 05:18:23,429 Education Project. 9756 05:18:25,968 --> 05:18:26,635 Okay, we'll have to move on. 9757 05:18:26,635 --> 05:18:29,350 Next up Shelby Huffaker. 9758 05:18:33,408 --> 05:18:34,242 Please begin that evening. 9759 05:18:34,242 --> 05:18:38,313 My name is Shelby and I'm a 9760 05:18:38,313 --> 05:18:39,140 board member of the San Diego 9761 05:18:39,140 --> 05:18:39,681 chapter of Americans for Safe 9762 05:18:39,681 --> 05:18:42,810 Access, a national nonprofit 9763 05:18:42,885 --> 05:18:43,552 advancing Safe Access to 9764 05:18:43,552 --> 05:18:43,985 cannabis for therapeutic use 9765 05:18:43,985 --> 05:18:44,653 and research. 9766 05:18:44,653 --> 05:18:48,156 I urge you to reject this 9767 05:18:48,156 --> 05:18:48,724 proposed cannabis delivery 9768 05:18:48,724 --> 05:18:49,291 permit and enforcement 9769 05:18:49,291 --> 05:18:51,291 enforcement ordinance. 9770 05:18:52,661 --> 05:18:53,361 It is redundant with state law 9771 05:18:53,361 --> 05:18:54,620 and appearance designed to let 9772 05:18:54,620 --> 05:18:56,462 San Diego's existing cannabis 9773 05:18:57,900 --> 05:18:58,500 monopoly block competition from 9774 05:18:58,500 --> 05:18:59,168 the county social equity 9775 05:18:59,168 --> 05:18:59,868 program which is just weeks 9776 05:18:59,868 --> 05:19:02,868 away from an anticipated vote 9777 05:19:02,905 --> 05:19:03,338 on the code's needed to 9778 05:19:03,338 --> 05:19:05,338 implement it. 9779 05:19:06,441 --> 05:19:06,842 If you move forward please make 9780 05:19:06,842 --> 05:19:07,509 two changes. 9781 05:19:07,509 --> 05:19:08,243 First, eliminate the private 9782 05:19:08,243 --> 05:19:10,479 right of action which would let 9783 05:19:10,479 --> 05:19:11,180 anyone including monopoly 9784 05:19:11,180 --> 05:19:13,580 members and opponent opponents 9785 05:19:15,984 --> 05:19:16,652 of cannabis legalization sue 9786 05:19:16,652 --> 05:19:17,520 compliant operators and clog 9787 05:19:17,520 --> 05:19:19,520 our courts. 9788 05:19:20,656 --> 05:19:21,390 Second, please exempt operators 9789 05:19:21,390 --> 05:19:22,124 already licensed by the county 9790 05:19:22,124 --> 05:19:22,457 from this duplicative permitted 9791 05:19:22,457 --> 05:19:24,457 system. 9792 05:19:25,561 --> 05:19:26,610 Please reject this ordinance or 9793 05:19:26,610 --> 05:19:26,495 adopt these fixes. 9794 05:19:26,495 --> 05:19:28,430 >> Thank you. 9795 05:19:28,430 --> 05:19:28,997 Thank you. 9796 05:19:28,997 --> 05:19:30,997 >> Kelly Hayes. 9797 05:19:33,769 --> 05:19:34,169 Please begin. 9798 05:19:34,169 --> 05:19:34,870 >> Hi. 9799 05:19:34,870 --> 05:19:35,471 Good evening, Council members. 9800 05:19:35,471 --> 05:19:38,471 My name is Kelly Hayes. 9801 05:19:38,540 --> 05:19:39,275 i'm a resident of District two 9802 05:19:39,275 --> 05:19:42,275 and an attorney who specializes 9803 05:19:42,611 --> 05:19:43,110 in working with the cannabis 9804 05:19:43,110 --> 05:19:43,679 businesses. 9805 05:19:43,679 --> 05:19:44,213 I've been working with this 9806 05:19:44,213 --> 05:19:46,213 industry since 2014. 9807 05:19:48,150 --> 05:19:48,851 And I've seen a lot of issues 9808 05:19:48,851 --> 05:19:51,851 with this ordinance and I 9809 05:19:52,354 --> 05:19:52,955 strongly oppose it. 9810 05:19:52,955 --> 05:19:53,689 First requiring delivery 9811 05:19:53,689 --> 05:19:56,689 businesses to obtain a separate 9812 05:19:57,626 --> 05:19:58,270 San Diego permit is unworkable 9813 05:19:58,270 --> 05:19:58,694 in the city. 9814 05:19:58,694 --> 05:20:02,431 The city is going to have no 9815 05:20:02,431 --> 05:20:02,832 way to police and enforce this 9816 05:20:02,832 --> 05:20:03,466 requirement. 9817 05:20:03,466 --> 05:20:05,466 State regulations require 9818 05:20:07,303 --> 05:20:08,300 delivery vehicles to be in 9819 05:20:08,300 --> 05:20:10,300 unmarked and indistinguishable 9820 05:20:11,607 --> 05:20:11,907 from any other type of vehicle 9821 05:20:11,907 --> 05:20:12,675 . 9822 05:20:12,675 --> 05:20:13,542 The effect that this is going 9823 05:20:13,542 --> 05:20:16,579 to have on staff is going to be 9824 05:20:16,579 --> 05:20:17,279 burdensome and it's going to 9825 05:20:17,279 --> 05:20:17,980 accomplish absolutely nothing 9826 05:20:17,980 --> 05:20:18,314 nothing that you're trying to 9827 05:20:18,314 --> 05:20:20,314 achieve. 9828 05:20:21,751 --> 05:20:22,385 Additionally, the private right 9829 05:20:22,385 --> 05:20:23,850 to action is duplicative. 9830 05:20:23,850 --> 05:20:26,550 There's already state law that 9831 05:20:26,550 --> 05:20:26,656 allows for this type of private 9832 05:20:26,656 --> 05:20:29,560 action And what you're 9833 05:20:30,726 --> 05:20:31,393 proposing is going to create 9834 05:20:31,393 --> 05:20:34,393 meritless cases and clog our 9835 05:20:36,320 --> 05:20:36,932 court system. 9836 05:20:36,932 --> 05:20:37,333 >> So I strongly ask you to 9837 05:20:37,333 --> 05:20:37,700 oppose this. 9838 05:20:37,700 --> 05:20:39,700 Thank you. 9839 05:20:40,836 --> 05:20:41,537 That does conclude your time. 9840 05:20:41,537 --> 05:20:42,104 And that concludes the public 9841 05:20:42,104 --> 05:20:44,504 testimony on item 2o2. 9842 05:20:45,107 --> 05:20:45,708 All right. 9843 05:20:45,708 --> 05:20:46,750 Thank you, Deputy Clerk. 9844 05:20:46,750 --> 05:20:46,943 Thank you. 9845 05:20:46,943 --> 05:20:49,943 Everybody that spoke or called 9846 05:20:50,246 --> 05:20:50,947 in will now turn it over to 9847 05:20:50,947 --> 05:20:51,680 council members for questions, 9848 05:20:51,680 --> 05:20:54,680 comments and entertain a motion 9849 05:20:55,184 --> 05:20:55,618 and we'll start with 9850 05:20:55,618 --> 05:20:56,318 the proponent. 9851 05:20:56,318 --> 05:20:57,520 Council Member Campo Thank you 9852 05:20:57,520 --> 05:20:59,522 Council PRESIDENT And thank you 9853 05:20:59,522 --> 05:20:59,855 to my staff for the good work 9854 05:20:59,855 --> 05:21:00,623 on this. 9855 05:21:00,623 --> 05:21:01,157 Thank you to all the members of 9856 05:21:01,157 --> 05:21:01,691 the public for their 9857 05:21:01,691 --> 05:21:03,691 participation today. 9858 05:21:04,427 --> 05:21:05,610 I want to specifically thank 9859 05:21:05,610 --> 05:21:05,528 the cw workers who came to 9860 05:21:05,528 --> 05:21:06,195 speak directly. 9861 05:21:06,195 --> 05:21:08,931 Members of the Public Labor 9862 05:21:08,931 --> 05:21:09,632 Council and members of sounds 9863 05:21:09,632 --> 05:21:12,632 like almost every district for 9864 05:21:13,402 --> 05:21:13,869 explaining why today's action 9865 05:21:13,869 --> 05:21:14,504 is so important. 9866 05:21:14,504 --> 05:21:16,904 It's abundantly clear that 9867 05:21:18,541 --> 05:21:19,750 illicit cannabis delivery is a 9868 05:21:19,750 --> 05:21:19,776 problem in the city. 9869 05:21:19,776 --> 05:21:23,376 It's a problem that we haven't 9870 05:21:23,413 --> 05:21:24,470 had a solution to address 9871 05:21:24,470 --> 05:21:24,380 because it's difficult to 9872 05:21:24,380 --> 05:21:25,470 address. 9873 05:21:25,470 --> 05:21:28,470 It's layered with state and 9874 05:21:28,417 --> 05:21:29,118 local laws and enforcement 9875 05:21:29,118 --> 05:21:29,752 Actions span from the state to 9876 05:21:29,752 --> 05:21:32,152 city attorneys, local law 9877 05:21:33,656 --> 05:21:34,256 enforcement, the city 9878 05:21:34,256 --> 05:21:34,857 administrators and city 9879 05:21:34,857 --> 05:21:35,525 administrators involved. 9880 05:21:35,525 --> 05:21:38,270 Land use enforcement in some 9881 05:21:38,270 --> 05:21:38,761 cases. 9882 05:21:38,761 --> 05:21:39,328 So from a regulatory 9883 05:21:39,328 --> 05:21:41,728 perspective it is very 9884 05:21:42,699 --> 05:21:43,199 difficult to get this right. 9885 05:21:43,199 --> 05:21:43,866 But we're here. 9886 05:21:43,866 --> 05:21:46,266 The city regulates cannabis 9887 05:21:47,737 --> 05:21:48,137 delivery from businesses inside 9888 05:21:48,137 --> 05:21:48,738 city limits. 9889 05:21:48,738 --> 05:21:49,405 And if they don't follow 9890 05:21:49,405 --> 05:21:49,939 the rules, they don't get to 9891 05:21:49,939 --> 05:21:52,339 operate in the city. 9892 05:21:52,775 --> 05:21:53,442 They have a physical building 9893 05:21:53,442 --> 05:21:54,276 and a permit to operate it. 9894 05:21:54,276 --> 05:21:57,276 But what about the businesses 9895 05:21:57,881 --> 05:21:58,648 that come in, drive in, deliver 9896 05:21:58,648 --> 05:22:01,985 legally by state or local laws 9897 05:22:01,985 --> 05:22:02,752 and then leave? 9898 05:22:02,752 --> 05:22:06,550 To test if this is actually 9899 05:22:06,550 --> 05:22:06,756 happening you could right now 9900 05:22:06,756 --> 05:22:07,524 order cannabis to be delivered 9901 05:22:07,524 --> 05:22:10,524 to city hall particularly out 9902 05:22:11,929 --> 05:22:12,662 of city company is advertising 9903 05:22:12,662 --> 05:22:16,262 on Weed Maps an online platform 9904 05:22:16,599 --> 05:22:17,300 for marketing cannabis products 9905 05:22:17,300 --> 05:22:20,300 and has their location listed 9906 05:22:21,437 --> 05:22:22,138 as the Gaslamp District right 9907 05:22:22,138 --> 05:22:22,639 here in downtown Shouldn't 9908 05:22:22,639 --> 05:22:24,639 surprise anybody. 9909 05:22:26,109 --> 05:22:26,643 We don't have any licensed 9910 05:22:26,643 --> 05:22:27,430 cannabis outlets in 9911 05:22:27,430 --> 05:22:29,430 the Gaslamp. 9912 05:22:30,613 --> 05:22:31,247 This business is listed on 9913 05:22:31,247 --> 05:22:31,948 the state's Department of 9914 05:22:31,948 --> 05:22:34,948 Cannabis Control website as a 9915 05:22:35,585 --> 05:22:36,252 state licensed delivery 9916 05:22:36,252 --> 05:22:38,652 business but their licensed 9917 05:22:40,560 --> 05:22:40,924 operations is in Kern County. 9918 05:22:40,924 --> 05:22:41,591 That means in order to abide by 9919 05:22:41,591 --> 05:22:44,561 state law they would have to 9920 05:22:44,561 --> 05:22:45,297 wait until an order is made 9921 05:22:45,297 --> 05:22:45,996 before they dispatch to deliver 9922 05:22:45,996 --> 05:22:48,996 with a driver that delivery 9923 05:22:50,567 --> 05:22:51,201 driver has to be a direct 9924 05:22:51,201 --> 05:22:51,902 employee of that company. 9925 05:22:51,902 --> 05:22:54,804 They have to provide specific 9926 05:22:54,804 --> 05:22:55,505 details on every receipt with 9927 05:22:55,505 --> 05:22:56,206 information about that company 9928 05:22:56,206 --> 05:22:59,676 and they have to pay all 9929 05:22:59,676 --> 05:23:00,316 applicable taxes. 9930 05:23:00,316 --> 05:23:00,877 And they're definitely not 9931 05:23:00,877 --> 05:23:03,277 allowed to deliver to 9932 05:23:03,813 --> 05:23:04,648 government property. 9933 05:23:04,648 --> 05:23:05,315 You can place an order and have 9934 05:23:05,315 --> 05:23:05,816 a delivery within two hours 9935 05:23:05,816 --> 05:23:07,816 from this company. 9936 05:23:09,519 --> 05:23:09,953 No local taxes are applied on 9937 05:23:09,953 --> 05:23:10,687 their receipt. 9938 05:23:10,687 --> 05:23:13,687 No state license number is 9939 05:23:13,924 --> 05:23:14,591 listed on that receipt. 9940 05:23:14,591 --> 05:23:17,591 That means that someone is 9941 05:23:18,610 --> 05:23:18,762 either driving very fast from 9942 05:23:18,762 --> 05:23:21,762 Kern County, the nearest city 9943 05:23:22,466 --> 05:23:23,660 of which is 191 miles away or 9944 05:23:23,660 --> 05:23:23,767 they're storing cannabis 9945 05:23:23,767 --> 05:23:26,167 products illegally within our 9946 05:23:27,904 --> 05:23:28,538 city limits and that business 9947 05:23:28,538 --> 05:23:29,172 is clearly not abiding by 9948 05:23:29,172 --> 05:23:29,573 worker and consumer safety 9949 05:23:29,573 --> 05:23:31,573 protections. 9950 05:23:33,143 --> 05:23:33,810 So I understand we have a 9951 05:23:33,810 --> 05:23:34,544 current process for cannabis 9952 05:23:34,544 --> 05:23:34,878 delivery services entering city 9953 05:23:34,878 --> 05:23:36,878 limits. 9954 05:23:37,481 --> 05:23:38,181 They are required to register 9955 05:23:38,181 --> 05:23:38,848 for a business tax certificate 9956 05:23:38,848 --> 05:23:39,583 and pay applicable taxes but 9957 05:23:39,583 --> 05:23:42,285 they're not required to provide 9958 05:23:42,285 --> 05:23:42,619 any proof of their state 9959 05:23:42,619 --> 05:23:43,353 license. 9960 05:23:43,353 --> 05:23:43,954 So if we know that a business 9961 05:23:43,954 --> 05:23:46,354 is violating their state 9962 05:23:47,524 --> 05:23:48,191 license requirements, we can't 9963 05:23:48,191 --> 05:23:48,458 really do anything about it 9964 05:23:48,458 --> 05:23:49,293 yet. 9965 05:23:49,293 --> 05:23:51,862 And in this scenario let's say 9966 05:23:51,862 --> 05:23:52,529 we suspect that a facility is 9967 05:23:52,529 --> 05:23:53,263 within city limits is being 9968 05:23:53,263 --> 05:23:56,660 used to store cannabis products 9969 05:23:56,660 --> 05:23:56,866 for delivery. 9970 05:23:56,866 --> 05:23:57,167 It's not allowed under current 9971 05:23:57,167 --> 05:23:57,868 code. 9972 05:23:57,868 --> 05:24:01,468 We can provide notice and send 9973 05:24:01,605 --> 05:24:02,500 in code enforcement cpd to 9974 05:24:02,500 --> 05:24:02,672 investigate. 9975 05:24:02,672 --> 05:24:03,407 Apply penalties If they have 9976 05:24:03,407 --> 05:24:06,143 information on that business we 9977 05:24:06,143 --> 05:24:06,844 could file a complaint with 9978 05:24:06,844 --> 05:24:09,244 Department of Cannabis Control 9979 05:24:10,214 --> 05:24:10,948 to apply penalties or revoke a 9980 05:24:10,948 --> 05:24:11,682 permit if the business has one. 9981 05:24:11,682 --> 05:24:12,449 But we know that revoking a 9982 05:24:12,449 --> 05:24:14,818 permit or having an expired 9983 05:24:14,818 --> 05:24:15,552 permit does not stop that 9984 05:24:15,552 --> 05:24:16,153 business entity from continuing 9985 05:24:16,153 --> 05:24:18,553 to advertise and deliver 9986 05:24:19,590 --> 05:24:19,890 cannabis in the city of San 9987 05:24:19,890 --> 05:24:20,657 Diego. 9988 05:24:20,657 --> 05:24:21,325 So it's safe to say our current 9989 05:24:21,325 --> 05:24:24,325 resources are at capacity at 9990 05:24:24,461 --> 05:24:24,995 addressing this kind of illegal 9991 05:24:24,995 --> 05:24:25,662 commercial activity. 9992 05:24:25,662 --> 05:24:28,662 And when we've exhausted our 9993 05:24:28,732 --> 05:24:29,433 administrative options, 9994 05:24:29,433 --> 05:24:30,100 the city attorney's office can 9995 05:24:30,100 --> 05:24:30,768 still file a civil action in 9996 05:24:30,768 --> 05:24:33,168 court against the business. 9997 05:24:33,904 --> 05:24:34,571 But it would be a matter of 9998 05:24:34,571 --> 05:24:35,272 prioritizing this this issue 9999 05:24:35,272 --> 05:24:38,272 over others because our staff 10000 05:24:38,608 --> 05:24:39,376 capacity is limited. 10001 05:24:39,376 --> 05:24:40,770 And from what I've heard from 10002 05:24:40,770 --> 05:24:43,130 the workers and businesses and 10003 05:24:43,130 --> 05:24:43,681 members of the public is that 10004 05:24:43,681 --> 05:24:44,140 this activity goes on and on 10005 05:24:44,140 --> 05:24:44,682 and on. 10006 05:24:44,682 --> 05:24:46,682 >> While the government 10007 05:24:47,751 --> 05:24:48,385 agencies tasked with regulation 10008 05:24:48,385 --> 05:24:48,719 they're unable to enforce 10009 05:24:48,719 --> 05:24:50,719 the law. 10010 05:24:52,690 --> 05:24:53,323 My experience as a litigator 10011 05:24:53,323 --> 05:24:53,958 and prosecutor the private 10012 05:24:53,958 --> 05:24:54,592 right of action is a very 10013 05:24:54,592 --> 05:24:56,592 commonly used enforcement 10014 05:24:56,727 --> 05:24:57,394 mechanism. 10015 05:24:57,394 --> 05:24:58,620 It's primarily used in other 10016 05:24:58,620 --> 05:24:58,395 areas of law labor law for 10017 05:24:58,395 --> 05:25:00,395 example. 10018 05:25:02,320 --> 05:25:02,800 But the concept is very simple. 10019 05:25:02,800 --> 05:25:03,701 When a party is harmed by 10020 05:25:03,701 --> 05:25:07,271 the violation of a law they can 10021 05:25:07,271 --> 05:25:08,720 ask the court to enforce it. 10022 05:25:08,720 --> 05:25:11,408 This is not a unique remedy. 10023 05:25:11,408 --> 05:25:12,276 It's not a unique tool. 10024 05:25:12,276 --> 05:25:13,100 It's not just any member of 10025 05:25:13,100 --> 05:25:16,647 the public, by the way, a party 10026 05:25:16,647 --> 05:25:17,281 that's harmed by the violation 10027 05:25:17,281 --> 05:25:17,648 and in this case a legal 10028 05:25:17,648 --> 05:25:18,282 business. 10029 05:25:18,282 --> 05:25:20,282 Unions representing those 10030 05:25:21,189 --> 05:25:21,919 workers and those businesses 10031 05:25:21,919 --> 05:25:22,653 right here in San Diego. 10032 05:25:22,653 --> 05:25:26,157 So a court can evaluate that 10033 05:25:26,157 --> 05:25:26,857 evidence, determine penalties 10034 05:25:26,857 --> 05:25:27,291 if they determine the law was 10035 05:25:27,291 --> 05:25:29,291 not followed. 10036 05:25:30,794 --> 05:25:31,528 So what does this accomplish 10037 05:25:31,528 --> 05:25:32,960 and what does success look like 10038 05:25:32,960 --> 05:25:34,496 if we implement this? 10039 05:25:35,766 --> 05:25:36,467 First we incentivize legal 10040 05:25:36,467 --> 05:25:38,867 commercial activity by raising 10041 05:25:40,504 --> 05:25:41,172 the cost of noncompliance. 10042 05:25:41,172 --> 05:25:42,390 Registering for a business 10043 05:25:42,390 --> 05:25:45,639 permit means filling out a form 10044 05:25:46,210 --> 05:25:46,911 or you run The risk of high 10045 05:25:46,911 --> 05:25:50,511 penalties is not a high bar 10046 05:25:50,681 --> 05:25:51,349 that we are setting here 10047 05:25:51,349 --> 05:25:52,490 penalties that can actually 10048 05:25:52,490 --> 05:25:54,449 outweigh the financial benefit 10049 05:25:55,853 --> 05:25:56,587 to skip On hiring employees and 10050 05:25:56,587 --> 05:25:56,921 obtaining and renewing required 10051 05:25:56,921 --> 05:25:57,622 permits. 10052 05:25:57,622 --> 05:26:00,491 That's what we're looking at. 10053 05:26:00,491 --> 05:26:01,125 With this we intend to be clear 10054 05:26:01,125 --> 05:26:01,659 that any cannabis business 10055 05:26:01,659 --> 05:26:02,226 operating within our 10056 05:26:02,226 --> 05:26:04,226 jurisdiction must make 10057 05:26:05,563 --> 05:26:06,230 themselves known. 10058 05:26:06,230 --> 05:26:09,230 They must follow the laws. 10059 05:26:11,680 --> 05:26:11,802 As I pointed out earlier, a 10060 05:26:11,802 --> 05:26:12,504 receipt from a cannabis company 10061 05:26:12,504 --> 05:26:13,104 and current registered in Kern 10062 05:26:13,104 --> 05:26:15,306 County and delivering in 10063 05:26:15,306 --> 05:26:15,906 Gaslamp advertising Gaslamp as 10064 05:26:15,906 --> 05:26:17,906 violating multiple laws. 10065 05:26:19,677 --> 05:26:20,444 And if the business continues 10066 05:26:20,444 --> 05:26:21,450 to ignore local and state laws 10067 05:26:21,450 --> 05:26:21,445 they can then be held 10068 05:26:21,445 --> 05:26:23,445 accountable. 10069 05:26:24,849 --> 05:26:25,549 But I think we ought not reward 10070 05:26:25,549 --> 05:26:27,549 multimillion dollar companies 10071 05:26:28,919 --> 05:26:29,587 that decide it's more 10072 05:26:29,587 --> 05:26:30,254 profitable to ignore the law 10073 05:26:30,254 --> 05:26:32,654 which means ignoring worker 10074 05:26:33,257 --> 05:26:34,125 protections. 10075 05:26:34,125 --> 05:26:37,125 I think we should protect 10076 05:26:38,362 --> 05:26:39,300 workers. 10077 05:26:39,300 --> 05:26:39,697 These companies are ignoring 10078 05:26:39,697 --> 05:26:40,365 community protections where 10079 05:26:40,365 --> 05:26:40,665 around where cannabis can be 10080 05:26:40,665 --> 05:26:42,665 sold. 10081 05:26:43,101 --> 05:26:43,835 I think we should maintain 10082 05:26:43,835 --> 05:26:44,502 the system that we've put up in 10083 05:26:44,502 --> 05:26:47,502 San Diego that allow outside 10084 05:26:50,408 --> 05:26:51,142 entities to bring it down. 10085 05:26:51,142 --> 05:26:51,876 >> The public who voted to 10086 05:26:51,876 --> 05:26:54,276 allow commercial cannabis under 10087 05:26:55,446 --> 05:26:56,147 the expectation that tax 10088 05:26:56,147 --> 05:26:56,447 revenue would return back to 10089 05:26:56,447 --> 05:26:57,480 them. 10090 05:26:57,480 --> 05:26:59,448 That's what they wanted. 10091 05:27:00,518 --> 05:27:01,185 Right now it's not working. 10092 05:27:01,185 --> 05:27:04,185 So this proposal helps us 10093 05:27:05,356 --> 05:27:06,124 collect that as well. 10094 05:27:06,124 --> 05:27:06,691 So with that I understand that 10095 05:27:06,691 --> 05:27:09,910 to make this mechanism 10096 05:27:09,994 --> 05:27:10,695 successful we also need to 10097 05:27:10,695 --> 05:27:11,296 properly implement a permit or 10098 05:27:11,296 --> 05:27:13,296 a business registration 10099 05:27:14,332 --> 05:27:14,732 whichever way you want to 10100 05:27:14,732 --> 05:27:15,700 describe it. 10101 05:27:15,700 --> 05:27:16,367 We need to bring a fee study in 10102 05:27:16,367 --> 05:27:19,367 order to determine the cost 10103 05:27:19,771 --> 05:27:20,405 recoverable amount for 10104 05:27:20,405 --> 05:27:21,106 administering the permit. 10105 05:27:21,106 --> 05:27:24,106 And if we're asking businesses 10106 05:27:24,943 --> 05:27:25,677 to submit a copy of their state 10107 05:27:25,677 --> 05:27:26,411 license or business certificate 10108 05:27:26,411 --> 05:27:29,411 and information on their owners 10109 05:27:29,614 --> 05:27:30,348 employees I would imagine that 10110 05:27:30,348 --> 05:27:31,150 would align with the amount for 10111 05:27:31,150 --> 05:27:33,318 the business tax certificate 10112 05:27:33,318 --> 05:27:33,985 which is around $34 right now 10113 05:27:33,985 --> 05:27:34,552 for small businesses or $125 10114 05:27:34,552 --> 05:27:36,552 for larger businesses. 10115 05:27:38,723 --> 05:27:39,257 I see Good is here from 10116 05:27:39,257 --> 05:27:41,257 the mayor's office. 10117 05:27:42,527 --> 05:27:43,395 I need the mayor's commitment 10118 05:27:43,395 --> 05:27:47,465 via you that we will that you 10119 05:27:47,465 --> 05:27:48,132 will work to bring back bring 10120 05:27:48,132 --> 05:27:48,800 forward the appropriate fee 10121 05:27:48,800 --> 05:27:49,467 study to determine the exact 10122 05:27:49,467 --> 05:27:52,203 amount of what this business 10123 05:27:52,203 --> 05:27:52,904 permit will cost. 10124 05:27:52,904 --> 05:27:53,271 Yes, Councilmember, thank you 10125 05:27:53,271 --> 05:27:53,971 for that. 10126 05:27:53,971 --> 05:27:57,571 You do have our commitment to 10127 05:27:57,609 --> 05:27:58,343 bring that forward post second 10128 05:27:58,343 --> 05:27:59,770 reading at this House is today. 10129 05:27:59,770 --> 05:28:01,477 City Treasurer's office will 10130 05:28:01,813 --> 05:28:02,480 initiate the process to conduct 10131 05:28:02,480 --> 05:28:03,810 the fee study and then bring 10132 05:28:03,810 --> 05:28:05,481 that forward for council 10133 05:28:05,750 --> 05:28:06,451 consideration later this fall. 10134 05:28:06,451 --> 05:28:07,319 >> Okay, very good. 10135 05:28:07,319 --> 05:28:10,319 Also with along those same 10136 05:28:11,890 --> 05:28:11,690 lines working with staff to 10137 05:28:11,690 --> 05:28:12,190 ensure that neighboring 10138 05:28:12,190 --> 05:28:12,824 jurisdictions and 10139 05:28:12,824 --> 05:28:15,224 the Department of Cannabis 10140 05:28:16,270 --> 05:28:16,628 Control are properly notified 10141 05:28:16,628 --> 05:28:17,229 of those changes to our 10142 05:28:17,229 --> 05:28:19,229 cannabis regulations and 10143 05:28:20,799 --> 05:28:21,533 understand how to register 10144 05:28:21,533 --> 05:28:22,234 through the mechanism that will 10145 05:28:22,234 --> 05:28:23,340 be created by our departments. 10146 05:28:23,340 --> 05:28:25,804 Yes and I think that be an all 10147 05:28:25,804 --> 05:28:26,505 hands effort for parties that 10148 05:28:26,505 --> 05:28:27,172 touch this including dsd, cpd, 10149 05:28:27,172 --> 05:28:29,572 our government affairs team. 10150 05:28:30,275 --> 05:28:30,709 So you have our full support 10151 05:28:30,709 --> 05:28:31,900 there as well. 10152 05:28:31,900 --> 05:28:31,676 Okay. 10153 05:28:31,676 --> 05:28:34,760 With that council PRESIDENT, 10154 05:28:34,746 --> 05:28:35,480 I'm happy to move approval of 10155 05:28:35,480 --> 05:28:35,847 staff's recommendation on this. 10156 05:28:35,847 --> 05:28:36,248 Thank you. 10157 05:28:36,248 --> 05:28:37,820 All right. 10158 05:28:37,820 --> 05:28:37,849 So we have a motion by Council 10159 05:28:37,849 --> 05:28:40,520 member Campo to move the staff 10160 05:28:40,520 --> 05:28:40,686 recommendation and we'll go 10161 05:28:40,686 --> 05:28:41,190 next to council member Von 10162 05:28:41,190 --> 05:28:41,453 Wolpert. 10163 05:28:41,453 --> 05:28:43,453 >> Thank you. 10164 05:28:44,122 --> 05:28:44,856 And thank you very much to 10165 05:28:44,856 --> 05:28:45,457 staff for bringing this forward 10166 05:28:45,457 --> 05:28:46,124 today and thank you for 10167 05:28:46,124 --> 05:28:49,193 the hard work you've done it 10168 05:28:49,193 --> 05:28:49,928 and thank you to the public for 10169 05:28:49,928 --> 05:28:50,595 commenting and thank you to our 10170 05:28:50,595 --> 05:28:50,896 hard working folks that you 10171 05:28:50,896 --> 05:28:52,896 have. 10172 05:28:54,166 --> 05:28:54,766 C.W. Who have negotiated some 10173 05:28:54,766 --> 05:28:55,400 of the very first labor 10174 05:28:55,400 --> 05:28:57,800 contracts in the cannabis 10175 05:28:58,537 --> 05:28:59,404 industry. 10176 05:28:59,404 --> 05:29:03,341 I mean things like a paid day 10177 05:29:03,341 --> 05:29:04,420 off to go to the doctor and 10178 05:29:04,420 --> 05:29:04,710 fair wages And if you're 10179 05:29:04,710 --> 05:29:05,377 injured at the job that your 10180 05:29:05,377 --> 05:29:08,377 employer actually has to pay 10181 05:29:08,914 --> 05:29:09,615 worker's comp these are 10182 05:29:09,615 --> 05:29:10,820 the things that these workers 10183 05:29:10,820 --> 05:29:12,820 are asking for. 10184 05:29:12,818 --> 05:29:13,518 And I think that that should be 10185 05:29:13,518 --> 05:29:17,118 the bare minimum And it really 10186 05:29:17,489 --> 05:29:18,157 is very hard for cannabis 10187 05:29:18,157 --> 05:29:18,824 businesses who are lawfully 10188 05:29:18,824 --> 05:29:21,224 operating including the new 10189 05:29:22,427 --> 05:29:23,950 cannabis businesses who will be 10190 05:29:23,950 --> 05:29:23,562 permitted under the county's 10191 05:29:23,562 --> 05:29:25,562 equity program. 10192 05:29:27,966 --> 05:29:28,600 You too can be undercut by 10193 05:29:28,600 --> 05:29:29,234 the folks who operate down 10194 05:29:29,234 --> 05:29:29,868 the gas gaslamp from Kern 10195 05:29:29,868 --> 05:29:32,268 County by folks operating 10196 05:29:32,871 --> 05:29:33,572 outside of our state. 10197 05:29:33,572 --> 05:29:36,572 Even once you're licensed by 10198 05:29:37,409 --> 05:29:38,210 the cannabis equity program in 10199 05:29:38,210 --> 05:29:38,977 the county you too can use this 10200 05:29:38,977 --> 05:29:42,150 law If you locate in San Diego 10201 05:29:42,150 --> 05:29:42,681 and with the private right of 10202 05:29:42,681 --> 05:29:45,810 action it grants attorney's 10203 05:29:46,323 --> 05:29:46,986 fees and costs to 10204 05:29:46,986 --> 05:29:47,719 the prevailing party So you 10205 05:29:47,719 --> 05:29:48,721 don't need to hire an attorney. 10206 05:29:48,721 --> 05:29:51,457 You can get one to do it On 10207 05:29:51,457 --> 05:29:52,191 contingency. 10208 05:29:52,191 --> 05:29:52,925 It will be available to any 10209 05:29:52,925 --> 05:29:53,659 licensed business provider here 10210 05:29:53,659 --> 05:29:56,595 and you all can take on these 10211 05:29:56,595 --> 05:29:57,329 guys here or girls whoever who 10212 05:29:57,329 --> 05:29:59,465 are clearly coming from outside 10213 05:29:59,465 --> 05:30:03,665 the city and the county to come 10214 05:30:04,470 --> 05:30:05,170 undercut our local businesses. 10215 05:30:05,170 --> 05:30:08,170 That said, anyone who delivers 10216 05:30:09,208 --> 05:30:09,975 a product for sale in the city 10217 05:30:09,975 --> 05:30:13,946 of San Diego needs to be paying 10218 05:30:13,946 --> 05:30:14,647 sales tax and in this case 10219 05:30:14,647 --> 05:30:15,381 cannabis tax in the city. 10220 05:30:15,381 --> 05:30:18,617 You know we have folks who 10221 05:30:18,617 --> 05:30:19,385 deliver for Amazon or Target or 10222 05:30:19,385 --> 05:30:20,119 Walmart And if the point of 10223 05:30:20,119 --> 05:30:20,820 sale is here in the city of San 10224 05:30:20,820 --> 05:30:21,620 Diego, they have to pay their 10225 05:30:21,620 --> 05:30:23,989 taxes here even if their 10226 05:30:23,989 --> 05:30:24,256 business is located outside of 10227 05:30:24,256 --> 05:30:25,157 it. 10228 05:30:25,157 --> 05:30:28,661 This is a basic tax revenue 10229 05:30:28,661 --> 05:30:29,361 requirement. 10230 05:30:29,361 --> 05:30:30,620 It's a licensure requirement 10231 05:30:30,620 --> 05:30:30,462 and we require all businesses 10232 05:30:30,462 --> 05:30:32,462 to do this. 10233 05:30:32,530 --> 05:30:32,965 So I will second the motion. 10234 05:30:32,965 --> 05:30:33,332 >> Thank you. 10235 05:30:33,332 --> 05:30:33,699 All right. 10236 05:30:33,699 --> 05:30:35,699 Thank you. 10237 05:30:37,470 --> 05:30:38,237 Council member Von Wilpert. 10238 05:30:38,237 --> 05:30:38,971 So we have a motion by 10239 05:30:38,971 --> 05:30:41,140 Councilmember Campos, second by 10240 05:30:41,140 --> 05:30:41,841 Council member Von Wolpert to 10241 05:30:41,841 --> 05:30:42,508 move the staff recommendation 10242 05:30:42,508 --> 05:30:45,911 and we'll go next to Council 10243 05:30:45,911 --> 05:30:48,911 member Foster and thank you 10244 05:30:51,117 --> 05:30:54,717 Council PRESIDENT And I guess I 10245 05:30:56,220 --> 05:30:59,622 just need to reiterate and just 10246 05:31:03,829 --> 05:31:04,497 state for the record that I 10247 05:31:04,497 --> 05:31:07,497 think the discourse that you 10248 05:31:08,601 --> 05:31:09,368 are hearing stems from one 10249 05:31:09,368 --> 05:31:12,968 problem and that is we move 10250 05:31:13,720 --> 05:31:15,472 forward with cannabis without 10251 05:31:17,677 --> 05:31:18,578 being inclusive on its onset 10252 05:31:18,578 --> 05:31:22,778 And I think that was the worst 10253 05:31:23,382 --> 05:31:24,120 thing that we could have done. 10254 05:31:24,120 --> 05:31:27,120 I appreciate the $20 million in 10255 05:31:28,200 --> 05:31:28,654 revenue or roughly thereof that 10256 05:31:28,654 --> 05:31:31,540 we have been receiving. 10257 05:31:32,458 --> 05:31:33,159 I appreciate the good jobs as 10258 05:31:33,159 --> 05:31:36,159 our partners have been working 10259 05:31:40,800 --> 05:31:41,567 to make sure that we have good 10260 05:31:41,567 --> 05:31:43,967 employee benefits and and 10261 05:31:46,272 --> 05:31:46,672 workers rights But we did a 10262 05:31:46,672 --> 05:31:48,672 disservice. 10263 05:31:50,743 --> 05:31:53,743 We excluded a community that 10264 05:31:59,752 --> 05:32:02,722 has and still to this day is 10265 05:32:02,722 --> 05:32:05,122 continuing to have challenges 10266 05:32:12,966 --> 05:32:13,933 as we look at um how folks can 10267 05:32:13,933 --> 05:32:18,133 have what we call a life in 10268 05:32:18,370 --> 05:32:21,370 this United States of America 10269 05:32:22,410 --> 05:32:25,641 and this is something that we 10270 05:32:26,679 --> 05:32:27,347 have to stop. 10271 05:32:27,347 --> 05:32:30,347 It sounds like just from 10272 05:32:31,117 --> 05:32:31,651 the line of I guess from my 10273 05:32:31,651 --> 05:32:32,352 colleague MR. Campo 10274 05:32:32,352 --> 05:32:34,752 Councilmember Campo that there 10275 05:32:36,220 --> 05:32:36,789 is work that needs to come back 10276 05:32:36,789 --> 05:32:37,190 as we talk about establishing 10277 05:32:37,190 --> 05:32:39,190 permit fees. 10278 05:32:41,461 --> 05:32:41,861 It sounds like it should not 10279 05:32:41,861 --> 05:32:43,861 exceed $125. 10280 05:32:46,666 --> 05:32:47,400 Is that what I'm understand on 10281 05:32:47,400 --> 05:32:47,867 the onset of this conversation? 10282 05:32:47,867 --> 05:32:49,680 That's correct. 10283 05:32:49,680 --> 05:32:51,680 Okay. 10284 05:32:55,800 --> 05:32:59,790 Um and I guess if you can help 10285 05:32:59,790 --> 05:32:59,713 me to understand what does this 10286 05:32:59,713 --> 05:33:00,379 mean as I hear the public 10287 05:33:00,379 --> 05:33:03,379 comment, what does this mean 10288 05:33:04,170 --> 05:33:08,880 for folks that are part of this 10289 05:33:08,880 --> 05:33:08,688 county's program? 10290 05:33:08,688 --> 05:33:09,456 Is this excluding those 10291 05:33:09,456 --> 05:33:12,456 individuals from being able to 10292 05:33:13,526 --> 05:33:14,394 participate in the cannabis 10293 05:33:14,394 --> 05:33:17,994 industry that would like to do 10294 05:33:18,631 --> 05:33:19,320 delivery? 10295 05:33:19,320 --> 05:33:19,699 Yeah. 10296 05:33:19,699 --> 05:33:20,500 Thank you for the question. 10297 05:33:20,500 --> 05:33:23,836 Um, as the ordinance is written 10298 05:33:23,836 --> 05:33:24,471 now the county social equity 10299 05:33:24,471 --> 05:33:26,871 operators or any operator 10300 05:33:28,842 --> 05:33:29,543 that's delivering from outside 10301 05:33:29,543 --> 05:33:30,243 the city would be required to 10302 05:33:30,243 --> 05:33:33,447 fill out the permit form which 10303 05:33:33,447 --> 05:33:33,880 would be an online 10304 05:33:33,880 --> 05:33:34,514 registration. 10305 05:33:34,514 --> 05:33:38,114 And I think the thing that 10306 05:33:38,251 --> 05:33:38,919 we're hearing and discussion is 10307 05:33:38,919 --> 05:33:39,519 the fee amount and does that 10308 05:33:39,519 --> 05:33:41,919 fee represent a barrier? 10309 05:33:43,390 --> 05:33:44,910 And so like you said, 10310 05:33:44,910 --> 05:33:44,758 the second part of this is to 10311 05:33:44,758 --> 05:33:47,758 bring that fee study forward 10312 05:33:48,462 --> 05:33:49,620 and to determine the cost of 10313 05:33:49,620 --> 05:33:51,462 service and also explore 10314 05:33:53,767 --> 05:33:56,767 options for whether that be 10315 05:33:58,672 --> 05:33:59,306 waivers, discounted rates and 10316 05:33:59,306 --> 05:33:59,606 explore the possibilities 10317 05:33:59,606 --> 05:34:01,606 there. 10318 05:34:03,343 --> 05:34:03,877 But we can't determine that 10319 05:34:03,877 --> 05:34:04,611 feasibility without 10320 05:34:04,611 --> 05:34:04,912 understanding the cost to begin 10321 05:34:04,912 --> 05:34:06,912 with. 10322 05:34:09,383 --> 05:34:09,983 So we benchmark it against 10323 05:34:09,983 --> 05:34:12,383 the current business tax 10324 05:34:14,687 --> 05:34:15,222 certificate because it's a 10325 05:34:15,222 --> 05:34:15,789 similar mechanism of 10326 05:34:15,789 --> 05:34:16,390 registering providing 10327 05:34:16,390 --> 05:34:18,390 the information online. 10328 05:34:19,260 --> 05:34:19,626 It's not a land use permit 10329 05:34:19,626 --> 05:34:19,993 where it's going to be 10330 05:34:19,993 --> 05:34:20,627 intensive. 10331 05:34:20,627 --> 05:34:23,270 So we're thinking ballpark 10332 05:34:24,298 --> 05:34:25,650 can't be more than 50 to $100 10333 05:34:25,650 --> 05:34:25,766 but we have to be sure before 10334 05:34:25,766 --> 05:34:28,766 we present that information to 10335 05:34:29,636 --> 05:34:30,304 any other jurisdiction And also 10336 05:34:30,304 --> 05:34:33,904 to that we have met with 10337 05:34:34,475 --> 05:34:35,209 the county of San Diego over 10338 05:34:35,209 --> 05:34:38,209 this question and concern which 10339 05:34:39,613 --> 05:34:40,280 is how will the county social 10340 05:34:40,280 --> 05:34:40,981 equity businesses understand 10341 05:34:40,981 --> 05:34:43,381 the requirements when they're 10342 05:34:45,552 --> 05:34:46,253 navigating all of these hoops 10343 05:34:46,253 --> 05:34:48,653 through the county's program? 10344 05:34:49,222 --> 05:34:49,923 And we received their 10345 05:34:49,923 --> 05:34:50,624 commitment that they have a 10346 05:34:50,624 --> 05:34:53,624 list of the delivery operators 10347 05:34:54,270 --> 05:34:54,695 those Type nine licenses or 10348 05:34:54,695 --> 05:34:55,429 microbusinesses that will be 10349 05:34:55,429 --> 05:34:59,290 entering into the city and they 10350 05:34:59,466 --> 05:35:00,166 have a staff person ready to 10351 05:35:00,166 --> 05:35:00,834 assist filling out that form. 10352 05:35:00,834 --> 05:35:04,434 They're waiting on us to get 10353 05:35:04,705 --> 05:35:05,406 that information to them So we 10354 05:35:05,406 --> 05:35:08,406 will work extensively to make 10355 05:35:10,210 --> 05:35:10,978 sure that this ordinance 10356 05:35:10,978 --> 05:35:11,779 targets who is intended and is 10357 05:35:11,779 --> 05:35:15,820 not hurt, who it's not intended 10358 05:35:15,820 --> 05:35:15,482 to hurt. 10359 05:35:15,482 --> 05:35:17,482 Okay. 10360 05:35:18,953 --> 05:35:19,286 I appreciate that clarification 10361 05:35:19,286 --> 05:35:21,286 . 10362 05:35:25,392 --> 05:35:26,160 I mean I guess I will turn to 10363 05:35:26,160 --> 05:35:30,598 the city attorney as I am as my 10364 05:35:30,598 --> 05:35:34,198 office is working on a cannabis 10365 05:35:35,636 --> 05:35:36,737 equity policy as we speak. 10366 05:35:36,737 --> 05:35:41,475 And I will say that we have had 10367 05:35:41,475 --> 05:35:42,176 conversations with other 10368 05:35:42,176 --> 05:35:45,776 agencies and in one being Long 10369 05:35:46,680 --> 05:35:47,415 Beach on that we've had some 10370 05:35:47,415 --> 05:35:48,480 extensive conversations with as 10371 05:35:48,480 --> 05:35:51,480 we talk about the cannabis 10372 05:35:52,320 --> 05:35:52,686 industry and impacted folks and 10373 05:35:52,686 --> 05:35:53,487 barriers. 10374 05:35:53,487 --> 05:35:57,870 And one thing that did come 10375 05:35:57,458 --> 05:35:58,159 about that conversation as we 10376 05:35:58,159 --> 05:36:01,159 talk about cannabis equity is 10377 05:36:03,164 --> 05:36:06,164 the importance of delivery and 10378 05:36:07,968 --> 05:36:09,300 delivery services. 10379 05:36:09,300 --> 05:36:13,203 Um it is a lot different than 10380 05:36:13,341 --> 05:36:14,141 trying to enter the market just 10381 05:36:14,141 --> 05:36:17,141 establishing a brick and mortar 10382 05:36:19,146 --> 05:36:19,980 type process. 10383 05:36:19,980 --> 05:36:23,580 Um just evening I'm going to 10384 05:36:24,452 --> 05:36:25,152 take out what the cost of of of 10385 05:36:25,152 --> 05:36:28,752 building a building or some of 10386 05:36:30,191 --> 05:36:30,791 that but just the cost of what 10387 05:36:30,791 --> 05:36:33,791 we go through from a 10388 05:36:35,963 --> 05:36:36,731 development services position 10389 05:36:36,731 --> 05:36:37,431 and that added cost and time 10390 05:36:37,431 --> 05:36:41,310 frame and what it does to 10391 05:36:41,969 --> 05:36:42,737 someone that's trying to move 10392 05:36:42,737 --> 05:36:46,337 forward in this industry it is 10393 05:36:47,942 --> 05:36:51,542 daunting and it is a a 10394 05:36:53,114 --> 05:36:53,814 financial burden um the way 10395 05:36:53,814 --> 05:36:54,810 this process is moving right 10396 05:36:54,810 --> 05:36:56,810 now. 10397 05:36:58,720 --> 05:37:02,320 And so with that MADAM City 10398 05:37:05,260 --> 05:37:05,727 Attorney I will say um that um 10399 05:37:05,727 --> 05:37:06,460 I will my office will be 10400 05:37:06,460 --> 05:37:07,195 contacting you as I think as we 10401 05:37:07,195 --> 05:37:10,195 continue to move forward with 10402 05:37:11,650 --> 05:37:11,866 the cannabis equity policy that 10403 05:37:11,866 --> 05:37:15,466 we will have to potentially at 10404 05:37:16,838 --> 05:37:17,538 some point um relook at this 10405 05:37:17,538 --> 05:37:20,538 policy that we are discussing 10406 05:37:22,910 --> 05:37:23,678 today and to make some 10407 05:37:23,678 --> 05:37:24,345 provisions based on what we are 10408 05:37:24,345 --> 05:37:27,345 going to be bringing forward 10409 05:37:28,182 --> 05:37:28,883 because I cannot bring in a 10410 05:37:28,883 --> 05:37:31,283 cannabis equity policy without 10411 05:37:34,322 --> 05:37:35,890 a delivery provision and that 10412 05:37:35,890 --> 05:37:38,689 was directly a result of my 10413 05:37:39,928 --> 05:37:40,595 conversations with Long Beach 10414 05:37:40,595 --> 05:37:40,961 and what was brought to my 10415 05:37:40,961 --> 05:37:41,696 attention. 10416 05:37:41,696 --> 05:37:45,366 So it is a very, very important 10417 05:37:45,366 --> 05:37:45,867 and critical component of a of 10418 05:37:45,867 --> 05:37:47,867 an equity program. 10419 05:37:52,273 --> 05:37:53,700 So thank you Council member 10420 05:37:53,700 --> 05:37:53,541 We'll be happy to discuss those 10421 05:37:53,541 --> 05:37:53,908 issues with Office. 10422 05:37:53,908 --> 05:37:55,908 All right. 10423 05:37:58,346 --> 05:37:59,460 Thank you With that One last 10424 05:37:59,460 --> 05:38:02,460 question and just going to 10425 05:38:03,752 --> 05:38:04,419 the eBay's comments on that 10426 05:38:04,419 --> 05:38:05,860 they provided it seems like 10427 05:38:05,860 --> 05:38:09,286 there are as we as the main 10428 05:38:10,425 --> 05:38:11,920 purpose that we are doing this 10429 05:38:11,920 --> 05:38:11,793 is trying to get our arms 10430 05:38:11,793 --> 05:38:14,793 around the illicit market and 10431 05:38:16,131 --> 05:38:16,898 especially and I'm just going 10432 05:38:16,898 --> 05:38:17,632 to say out of town folks, right 10433 05:38:17,632 --> 05:38:20,868 I'm going to isolate those mean 10434 05:38:20,868 --> 05:38:21,636 those bad actors. 10435 05:38:21,636 --> 05:38:22,337 But clearly it looks like 10436 05:38:22,337 --> 05:38:25,337 there's concerns on just what 10437 05:38:27,709 --> 05:38:28,143 that enforcement entails, what 10438 05:38:28,143 --> 05:38:30,143 it looks like. 10439 05:38:33,582 --> 05:38:34,215 Can you fill us in on just what 10440 05:38:34,215 --> 05:38:36,615 those at least immediate 10441 05:38:39,870 --> 05:38:39,621 challenges have been or what is 10442 05:38:39,621 --> 05:38:40,422 police referring to? 10443 05:38:40,422 --> 05:38:41,389 As you know, we can pass a 10444 05:38:41,389 --> 05:38:45,589 policy but if we can't go out 10445 05:38:45,660 --> 05:38:46,940 and enforce then what are we 10446 05:38:46,940 --> 05:38:48,940 accomplishing? 10447 05:38:51,266 --> 05:38:52,370 Definitely I'll I'll start and 10448 05:38:52,370 --> 05:38:52,701 then I can pass it over to 10449 05:38:52,701 --> 05:38:53,680 the departments to get their 10450 05:38:53,680 --> 05:38:55,680 response. 10451 05:38:56,271 --> 05:38:56,938 But the concerns that were 10452 05:38:56,938 --> 05:38:59,938 mentioned on how to enforce 10453 05:39:02,878 --> 05:39:03,578 delivery is essentially 10454 05:39:03,578 --> 05:39:04,279 the reason why we're proposing 10455 05:39:04,279 --> 05:39:04,613 this with the private right of 10456 05:39:04,613 --> 05:39:05,213 action. 10457 05:39:05,213 --> 05:39:07,213 Our current enforcement 10458 05:39:09,170 --> 05:39:09,751 capacity is exhausted. 10459 05:39:09,751 --> 05:39:10,585 The fda has the authority to 10460 05:39:10,585 --> 05:39:14,185 issue notices and I'll let them 10461 05:39:15,490 --> 05:39:15,958 finish on their department of 10462 05:39:15,958 --> 05:39:17,958 their expertise. 10463 05:39:20,495 --> 05:39:21,296 But their staff is limited. 10464 05:39:21,296 --> 05:39:22,640 The information that they have 10465 05:39:22,640 --> 05:39:25,664 is limited So as is they're 10466 05:39:26,702 --> 05:39:27,369 unable to enforce against known 10467 05:39:27,369 --> 05:39:28,300 delivery services especially 10468 05:39:28,300 --> 05:39:31,300 because they don't have a 10469 05:39:32,207 --> 05:39:32,975 physical place in San Diego. 10470 05:39:32,975 --> 05:39:33,642 So how can dsd enforce 10471 05:39:33,642 --> 05:39:34,760 something that's not within 10472 05:39:34,760 --> 05:39:36,760 their limits? 10473 05:39:38,881 --> 05:39:39,614 And so that's where the city 10474 05:39:39,614 --> 05:39:40,215 treasurer's office comes in and 10475 05:39:40,215 --> 05:39:40,916 they're responsible for 10476 05:39:40,916 --> 05:39:43,316 administering the business tax 10477 05:39:45,287 --> 05:39:45,988 certificate and they would be 10478 05:39:45,988 --> 05:39:46,688 the entity that's responsible 10479 05:39:46,688 --> 05:39:50,288 for enforcing this so to speak 10480 05:39:50,759 --> 05:39:51,393 from an administrative 10481 05:39:51,393 --> 05:39:52,270 perspective they would be 10482 05:39:52,270 --> 05:39:52,728 administering the permit. 10483 05:39:52,728 --> 05:39:55,728 But the question then becomes 10484 05:39:56,298 --> 05:39:56,899 what happens if a business 10485 05:39:56,899 --> 05:39:57,633 decides not to register? 10486 05:39:57,633 --> 05:39:58,367 They only have five registrants 10487 05:39:58,367 --> 05:40:02,567 so far and like you heard in 10488 05:40:02,771 --> 05:40:03,405 comment Oceanside set up a 10489 05:40:03,405 --> 05:40:04,390 registry No one registered 10490 05:40:04,390 --> 05:40:07,390 because they don't have an 10491 05:40:07,843 --> 05:40:08,477 incentive to and so that's 10492 05:40:08,477 --> 05:40:11,477 where the private right of 10493 05:40:14,283 --> 05:40:14,884 action comes into play where 10494 05:40:14,884 --> 05:40:15,517 the current enforcement 10495 05:40:15,517 --> 05:40:16,510 mechanisms aren't working. 10496 05:40:16,510 --> 05:40:16,618 So there wouldn't be 10497 05:40:16,618 --> 05:40:18,618 necessarily additional 10498 05:40:20,322 --> 05:40:21,900 enforcement capacity to address 10499 05:40:21,900 --> 05:40:24,690 that even though it repeat some 10500 05:40:27,796 --> 05:40:28,197 of the available improvement 10501 05:40:28,197 --> 05:40:28,964 mechanisms. 10502 05:40:28,964 --> 05:40:32,735 I would say So with that I can 10503 05:40:32,735 --> 05:40:33,369 turn it over to coda if you 10504 05:40:33,369 --> 05:40:33,736 have anything else to add. 10505 05:40:33,736 --> 05:40:34,203 >> Yeah. 10506 05:40:34,203 --> 05:40:34,937 Thanks so much. 10507 05:40:34,937 --> 05:40:35,337 I think that captures it pretty 10508 05:40:35,337 --> 05:40:37,337 accurately. 10509 05:40:38,373 --> 05:40:39,108 It's really to supplement and 10510 05:40:39,108 --> 05:40:39,775 support the current enforcement 10511 05:40:39,775 --> 05:40:42,175 landscape they're adding in 10512 05:40:43,945 --> 05:40:44,680 the Treasurer piece of it and 10513 05:40:44,680 --> 05:40:45,381 having essentially a checkpoint 10514 05:40:45,381 --> 05:40:49,581 for what we know is out there 10515 05:40:49,719 --> 05:40:50,286 not out there That's helpful to 10516 05:40:50,286 --> 05:40:50,853 support these efforts 10517 05:40:50,853 --> 05:40:51,587 separately from that. 10518 05:40:51,587 --> 05:40:52,254 But really the private right of 10519 05:40:52,254 --> 05:40:55,925 action is is that in the big 10520 05:40:55,925 --> 05:40:56,592 shiny thing through this new 10521 05:40:56,592 --> 05:40:57,193 proposed policy But staff is 10522 05:40:57,193 --> 05:41:00,193 ready to enforce this to 10523 05:41:03,232 --> 05:41:03,899 implement this I do have at 10524 05:41:03,899 --> 05:41:04,600 least open to as well as 10525 05:41:04,600 --> 05:41:07,000 Ricardo Ramos from city 10526 05:41:09,380 --> 05:41:09,738 treasurer all mine if have 10527 05:41:09,738 --> 05:41:10,340 really any specific questions 10528 05:41:10,340 --> 05:41:10,973 there But we are all on 10529 05:41:10,973 --> 05:41:13,342 the same page and ready to 10530 05:41:13,342 --> 05:41:13,642 enforce. 10531 05:41:13,642 --> 05:41:14,443 Okay. 10532 05:41:14,443 --> 05:41:18,430 Is there any I guess anything 10533 05:41:19,715 --> 05:41:20,483 covered in the current statutes 10534 05:41:20,483 --> 05:41:21,150 in regards to reporting or how 10535 05:41:21,150 --> 05:41:21,884 are we going to monitor Is 10536 05:41:21,884 --> 05:41:22,251 there any monitoring associated 10537 05:41:22,251 --> 05:41:24,251 with this? 10538 05:41:26,550 --> 05:41:26,722 How are we going to determine 10539 05:41:26,722 --> 05:41:27,290 how this is progressing? 10540 05:41:27,290 --> 05:41:27,990 There's no monitoring 10541 05:41:27,990 --> 05:41:30,390 requirements that are explicit 10542 05:41:32,361 --> 05:41:33,950 in the ordinance but because of 10543 05:41:33,950 --> 05:41:36,950 that it's flexible to determine 10544 05:41:38,267 --> 05:41:39,100 that administratively our goal 10545 05:41:39,100 --> 05:41:39,635 would be to have something like 10546 05:41:39,635 --> 05:41:42,350 the Department of Cannabis 10547 05:41:44,106 --> 05:41:44,774 Control They have a registry 10548 05:41:44,774 --> 05:41:45,341 that's available for public 10549 05:41:45,341 --> 05:41:46,800 viewing so you're not 10550 05:41:46,800 --> 05:41:48,408 contacting that staff person 10551 05:41:49,645 --> 05:41:50,460 and asking for that 10552 05:41:50,460 --> 05:41:50,746 information. 10553 05:41:50,746 --> 05:41:51,280 It's a readily available list 10554 05:41:51,280 --> 05:41:53,280 and active registry. 10555 05:41:56,118 --> 05:41:56,786 So in terms of records 10556 05:41:56,786 --> 05:41:57,420 maintenance and managing of 10557 05:41:57,420 --> 05:42:00,420 that we would envision an 10558 05:42:02,325 --> 05:42:02,992 annual updated process. 10559 05:42:02,992 --> 05:42:03,559 But again it's up to 10560 05:42:03,559 --> 05:42:04,227 the administration and 10561 05:42:04,227 --> 05:42:06,627 department to determine what 10562 05:42:07,863 --> 05:42:08,598 makes the most sense and what 10563 05:42:08,598 --> 05:42:12,198 would be feasible on their end. 10564 05:42:13,903 --> 05:42:14,303 Okay. 10565 05:42:14,303 --> 05:42:14,870 All right. 10566 05:42:14,870 --> 05:42:15,772 Thank you for that. 10567 05:42:15,772 --> 05:42:19,609 I guess I will fall back coda 10568 05:42:19,609 --> 05:42:20,343 and have some additional 10569 05:42:20,343 --> 05:42:21,440 conversation so I can make sure 10570 05:42:21,440 --> 05:42:24,644 I just understand just from a 10571 05:42:24,813 --> 05:42:25,548 practical perspective what this 10572 05:42:25,548 --> 05:42:26,249 enforcement process looks like. 10573 05:42:26,249 --> 05:42:26,949 It sounds like we are going to 10574 05:42:26,949 --> 05:42:30,549 leave it in the hands of 10575 05:42:31,487 --> 05:42:35,687 the public to come in and try 10576 05:42:37,126 --> 05:42:37,827 and do some things which is a 10577 05:42:37,827 --> 05:42:40,827 little concerning based on how 10578 05:42:43,990 --> 05:42:43,967 the commentary and the feedback 10579 05:42:43,967 --> 05:42:44,567 you get within the industry as 10580 05:42:44,567 --> 05:42:47,567 competitive as it is and 10581 05:42:49,339 --> 05:42:52,339 the issues that that everyone's 10582 05:42:54,677 --> 05:42:55,345 encountering I will support 10583 05:42:55,345 --> 05:42:55,778 this today as we continue to 10584 05:42:55,778 --> 05:42:57,778 move forward. 10585 05:43:01,851 --> 05:43:02,518 But again and that's what 10586 05:43:02,518 --> 05:43:03,253 the understanding the intent 10587 05:43:03,253 --> 05:43:06,853 that I will be bringing forward 10588 05:43:06,856 --> 05:43:07,723 the cannabis equity program 10589 05:43:07,723 --> 05:43:08,591 I'll be it will have a delivery 10590 05:43:08,591 --> 05:43:12,791 component to it And so we'll be 10591 05:43:13,496 --> 05:43:14,164 looking to make sure that any 10592 05:43:14,164 --> 05:43:14,864 necessary provisions to make 10593 05:43:14,864 --> 05:43:18,835 sure we are as inclusive as we 10594 05:43:18,835 --> 05:43:19,502 can be as we continue to move 10595 05:43:19,502 --> 05:43:21,902 forward and further progress 10596 05:43:25,750 --> 05:43:25,408 with the cannabis or cannabis 10597 05:43:25,408 --> 05:43:26,142 program. 10598 05:43:26,142 --> 05:43:29,742 And again I'm just going to 10599 05:43:31,470 --> 05:43:31,681 close with I am still very 10600 05:43:31,681 --> 05:43:32,349 disappointed that we move 10601 05:43:32,349 --> 05:43:32,816 forward without the cannabis 10602 05:43:32,816 --> 05:43:34,816 equity program. 10603 05:43:37,860 --> 05:43:37,791 I hate that we gave almost $1 10604 05:43:37,791 --> 05:43:41,391 million back which I think was 10605 05:43:42,292 --> 05:43:43,260 a horrible decision and really 10606 05:43:43,260 --> 05:43:43,560 an injustice to those folks who 10607 05:43:43,560 --> 05:43:45,560 have been impacted. 10608 05:43:49,320 --> 05:43:49,733 And just to turn this over to 10609 05:43:49,733 --> 05:43:53,333 what I guess I would call 10610 05:43:55,872 --> 05:43:56,573 corporate type folks to take 10611 05:43:56,573 --> 05:43:57,240 over this industry I think was 10612 05:43:57,240 --> 05:44:00,240 just a horrific and horrible 10613 05:44:00,744 --> 05:44:01,770 move by the by the city 10614 05:44:01,770 --> 05:44:01,745 council. 10615 05:44:01,745 --> 05:44:04,745 And so I'll conclude there. 10616 05:44:10,620 --> 05:44:11,540 Council PRESIDENT And me for 10617 05:44:11,540 --> 05:44:11,421 your comments. 10618 05:44:11,421 --> 05:44:12,122 All right. 10619 05:44:12,122 --> 05:44:12,789 Thank you Council my boss for 10620 05:44:12,789 --> 05:44:15,189 not seeing anybody Council 10621 05:44:15,625 --> 05:44:16,326 member Yellow River Thank you 10622 05:44:16,326 --> 05:44:17,270 Council PRESIDENT Thank you so 10623 05:44:17,270 --> 05:44:19,290 much for the presentation and 10624 05:44:19,290 --> 05:44:22,629 for your help Customer come to 10625 05:44:24,768 --> 05:44:25,736 you for bringing us forward 10626 05:44:25,736 --> 05:44:29,936 kind of at a high level you 10627 05:44:31,508 --> 05:44:32,175 know groups and businesses that 10628 05:44:32,175 --> 05:44:35,175 are taking advantage of San 10629 05:44:37,914 --> 05:44:38,582 Diego that are operating here 10630 05:44:38,582 --> 05:44:39,249 benefiting from the city but 10631 05:44:39,249 --> 05:44:42,249 not paying their fair share. 10632 05:44:43,987 --> 05:44:44,621 I always have a problem with 10633 05:44:44,621 --> 05:44:45,389 that And so I appreciate 10634 05:44:45,389 --> 05:44:49,589 the part of this that that aims 10635 05:44:49,993 --> 05:44:50,660 to address that. 10636 05:44:50,660 --> 05:44:53,600 I'm certainly sympathetic to 10637 05:44:56,800 --> 05:44:57,568 the concerns that the high 10638 05:44:57,568 --> 05:45:01,168 standard that you C.W., has 10639 05:45:02,940 --> 05:45:03,673 helped establish for what work 10640 05:45:03,673 --> 05:45:04,374 place conditions and wages look 10641 05:45:04,374 --> 05:45:07,974 like for those folks who work 10642 05:45:08,946 --> 05:45:09,446 in the industry that operate 10643 05:45:09,446 --> 05:45:10,146 outside the city. 10644 05:45:10,146 --> 05:45:13,146 There's operators who work or 10645 05:45:15,419 --> 05:45:16,190 not not only not meeting that 10646 05:45:16,190 --> 05:45:16,720 standard that employers 10647 05:45:16,720 --> 05:45:19,720 generally and we certainly do 10648 05:45:20,900 --> 05:45:20,691 want to reward that All of 10649 05:45:20,691 --> 05:45:21,358 those concerns I am very 10650 05:45:21,358 --> 05:45:23,758 sympathetic to I appreciate 10651 05:45:26,730 --> 05:45:27,297 the questions and comments from 10652 05:45:27,297 --> 05:45:29,297 Councilmember Foster. 10653 05:45:32,403 --> 05:45:33,300 I could I'm not sure I fully 10654 05:45:33,300 --> 05:45:33,737 understood the answer to 10655 05:45:33,737 --> 05:45:34,405 the question raised about input 10656 05:45:34,405 --> 05:45:36,405 raised about implementation 10657 05:45:41,946 --> 05:45:42,713 because in terms I appreciate 10658 05:45:42,713 --> 05:45:46,313 your your response but I will 10659 05:45:48,652 --> 05:45:49,253 note that dsd and Treasurer 10660 05:45:49,253 --> 05:45:49,953 raise concerns regarding 10661 05:45:49,953 --> 05:45:50,221 implementation of Proposal co 10662 05:45:50,221 --> 05:45:50,921 two. 10663 05:45:50,921 --> 05:45:54,425 You said you guys are ready to 10664 05:45:54,425 --> 05:45:55,159 enforce. 10665 05:45:55,159 --> 05:45:55,792 What's the gap there between 10666 05:45:55,792 --> 05:45:58,192 what the department's told 10667 05:46:00,640 --> 05:46:00,397 the ipa and the readiness to 10668 05:46:00,397 --> 05:46:01,650 enforce? 10669 05:46:01,650 --> 05:46:01,732 And I think there's been an 10670 05:46:01,732 --> 05:46:04,132 acknowledgment by the length 10671 05:46:05,703 --> 05:46:06,370 within the language of 10672 05:46:06,370 --> 05:46:07,710 the ordinance that there's a 10673 05:46:07,710 --> 05:46:10,671 gap between what the city can 10674 05:46:11,542 --> 05:46:12,309 do and what the expectation is 10675 05:46:12,309 --> 05:46:12,610 as far as what needs to be 10676 05:46:12,610 --> 05:46:14,610 done. 10677 05:46:18,349 --> 05:46:19,830 I think and certainly I'm not 10678 05:46:19,830 --> 05:46:19,583 tried to speak on your behalf I 10679 05:46:19,583 --> 05:46:20,251 think there was a 10680 05:46:20,251 --> 05:46:22,651 misunderstanding that MAY be 10681 05:46:24,550 --> 05:46:24,721 played out last week during one 10682 05:46:24,721 --> 05:46:25,422 of the public briefings that 10683 05:46:25,422 --> 05:46:28,422 has since been resolved where 10684 05:46:29,327 --> 05:46:30,270 dsd does know their role here 10685 05:46:30,270 --> 05:46:30,694 within this proposed ordinance 10686 05:46:30,694 --> 05:46:31,328 as does the city treasurer. 10687 05:46:31,328 --> 05:46:32,290 I think maybe there was an 10688 05:46:32,290 --> 05:46:35,290 assumption that more was going 10689 05:46:36,300 --> 05:46:37,100 to be added to their plate in 10690 05:46:37,100 --> 05:46:37,702 terms of something that would 10691 05:46:37,702 --> 05:46:40,102 require additional staff time 10692 05:46:41,338 --> 05:46:42,390 or budget which again wouldn't 10693 05:46:42,390 --> 05:46:42,707 be maybe wasn't something that 10694 05:46:42,707 --> 05:46:43,407 was going to be ready for 10695 05:46:43,407 --> 05:46:45,807 consideration today that then 10696 05:46:48,512 --> 05:46:49,180 resolved We do have a path 10697 05:46:49,180 --> 05:46:49,847 forward here that we can do 10698 05:46:49,847 --> 05:46:52,247 within our current capacity. 10699 05:46:53,551 --> 05:46:54,185 We do have a game plan moving 10700 05:46:54,185 --> 05:46:54,919 forward on returning with 10701 05:46:54,919 --> 05:46:59,257 the fee study and so we do feel 10702 05:46:59,257 --> 05:46:59,957 confident that our timeline and 10703 05:46:59,957 --> 05:47:00,658 path forward is solidified and 10704 05:47:00,658 --> 05:47:04,128 agreed upon by all parties and 10705 05:47:04,128 --> 05:47:05,263 city departments. 10706 05:47:05,263 --> 05:47:10,268 So if you can I ask you I mean 10707 05:47:10,268 --> 05:47:10,601 you put this here for a reason 10708 05:47:10,601 --> 05:47:11,269 . 10709 05:47:11,269 --> 05:47:13,669 Are there specific concerns 10710 05:47:17,275 --> 05:47:17,975 that you continue to have just 10711 05:47:17,975 --> 05:47:18,609 not have the information that 10712 05:47:18,609 --> 05:47:21,900 code is referencing here? 10713 05:47:24,248 --> 05:47:24,916 I'm trying to reconcile what I 10714 05:47:24,916 --> 05:47:25,650 know what's put here in good 10715 05:47:25,650 --> 05:47:26,170 faith and what we're hearing on 10716 05:47:26,170 --> 05:47:28,170 the dais. 10717 05:47:30,540 --> 05:47:30,922 I think Yes. 10718 05:47:30,922 --> 05:47:33,922 So so while we're discussing 10719 05:47:34,993 --> 05:47:35,693 with the departments both dsd 10720 05:47:35,693 --> 05:47:38,693 and seato just have questions 10721 05:47:40,798 --> 05:47:41,399 on how to enforce once we have 10722 05:47:41,399 --> 05:47:42,660 this registered or some 10723 05:47:42,660 --> 05:47:44,466 information that they might 10724 05:47:47,171 --> 05:47:48,390 require that it's not provided 10725 05:47:48,390 --> 05:47:48,706 and I defer back to the city or 10726 05:47:48,706 --> 05:47:49,340 what specific those are For 10727 05:47:49,340 --> 05:47:51,740 example type nine licenses 10728 05:47:53,577 --> 05:47:54,178 information that is collected 10729 05:47:54,178 --> 05:47:54,812 in the state That's not 10730 05:47:54,812 --> 05:47:57,212 something they're able to 10731 05:47:58,983 --> 05:47:59,717 receive as of my understanding 10732 05:47:59,717 --> 05:48:03,917 now But I would defer back to 10733 05:48:04,889 --> 05:48:07,289 the cto for specifics. 10734 05:48:10,995 --> 05:48:11,596 I don't have anyone we do 10735 05:48:11,596 --> 05:48:12,263 believe we had a deputy 10736 05:48:12,263 --> 05:48:14,663 director Ricardo Ramos from 10737 05:48:17,103 --> 05:48:17,769 city treasurer only this 10738 05:48:17,769 --> 05:48:18,369 recording of the see that's 10739 05:48:18,369 --> 05:48:20,769 what concern was just 10740 05:48:22,473 --> 05:48:23,174 the enforcement as referenced 10741 05:48:23,174 --> 05:48:23,875 earlier this is basically just 10742 05:48:23,875 --> 05:48:26,578 a registry So we're collecting 10743 05:48:26,578 --> 05:48:26,978 the data and we can actually do 10744 05:48:26,978 --> 05:48:27,846 that piece. 10745 05:48:27,846 --> 05:48:31,446 But it's the question is just 10746 05:48:33,518 --> 05:48:35,518 the enforcement. 10747 05:48:39,624 --> 05:48:40,325 So that's what the answer if 10748 05:48:40,325 --> 05:48:41,590 that's the question as well as 10749 05:48:41,590 --> 05:48:44,590 what was presented today, there 10750 05:48:44,896 --> 05:48:45,597 is no enforcement enforcement 10751 05:48:45,597 --> 05:48:46,331 that would be performed by 10752 05:48:46,331 --> 05:48:50,531 the city just because we have a 10753 05:48:50,534 --> 05:48:51,236 lack of resources to The answer 10754 05:48:51,236 --> 05:48:51,570 is a private right of action. 10755 05:48:51,570 --> 05:48:51,870 Correct. 10756 05:48:51,870 --> 05:48:53,870 Okay. 10757 05:49:06,518 --> 05:49:07,218 So okay So concerns about 10758 05:49:07,218 --> 05:49:10,218 the city's ability to enforce 10759 05:49:12,957 --> 05:49:13,592 or I should say implement 10760 05:49:13,592 --> 05:49:14,292 through enforcement those 10761 05:49:14,292 --> 05:49:17,292 remain what is solved through 10762 05:49:18,697 --> 05:49:19,164 salt Fourth through 10763 05:49:19,164 --> 05:49:19,865 the ordinance is 10764 05:49:19,865 --> 05:49:22,865 the expectation that that gap 10765 05:49:24,690 --> 05:49:24,569 will be closed through private 10766 05:49:24,569 --> 05:49:24,970 right of action. 10767 05:49:24,970 --> 05:49:26,970 That's okay. 10768 05:49:29,207 --> 05:49:32,807 There's like I like a consensus 10769 05:49:35,781 --> 05:49:36,481 of had nothing going on okay I 10770 05:49:36,481 --> 05:49:39,481 recognize that type of action 10771 05:49:41,119 --> 05:49:41,820 are a common tool and an 10772 05:49:41,820 --> 05:49:42,421 important tool And I just from 10773 05:49:42,421 --> 05:49:44,821 a general public policy 10774 05:49:46,925 --> 05:49:47,626 perspective I have concerns and 10775 05:49:47,626 --> 05:49:48,193 don't like the idea that we've 10776 05:49:48,193 --> 05:49:50,193 basically written off 10777 05:49:53,980 --> 05:49:53,732 the city's ability to to 10778 05:49:53,732 --> 05:49:54,432 perform a function that we 10779 05:49:54,432 --> 05:49:58,320 think is worth writing the law 10780 05:50:02,440 --> 05:50:03,141 for to the to private industry. 10781 05:50:03,141 --> 05:50:03,942 But that's just as a general 10782 05:50:03,942 --> 05:50:06,942 sense of public policy that 10783 05:50:09,140 --> 05:50:09,681 doesn't seem like the direction 10784 05:50:09,681 --> 05:50:10,349 we should head but that's a 10785 05:50:10,349 --> 05:50:13,349 resource issue and that will 10786 05:50:13,752 --> 05:50:14,620 continue to be a resource issue 10787 05:50:14,620 --> 05:50:18,220 until the city is properly is 10788 05:50:20,359 --> 05:50:23,359 properly resourced which is a 10789 05:50:26,398 --> 05:50:27,990 little bit of a separate issue 10790 05:50:27,990 --> 05:50:27,866 but not completely because as 10791 05:50:27,866 --> 05:50:31,470 we like we are adding things to 10792 05:50:31,470 --> 05:50:32,104 the city's plate while we're 10793 05:50:32,104 --> 05:50:32,838 also removing resources at 10794 05:50:32,838 --> 05:50:35,207 times and I will continue to be 10795 05:50:35,207 --> 05:50:35,841 frustrated by that But that's 10796 05:50:35,841 --> 05:50:38,841 not the decision that's in 10797 05:50:42,314 --> 05:50:42,881 front of us. 10798 05:50:42,881 --> 05:50:43,582 One other question and 10799 05:50:43,582 --> 05:50:46,218 COUNCILMAN Foster was going to 10800 05:50:46,218 --> 05:50:46,885 get to this There's four cities 10801 05:50:46,885 --> 05:50:47,586 referenced in the ordinance 10802 05:50:47,586 --> 05:50:51,186 L.A., Oakland, Long Beach and 10803 05:50:52,570 --> 05:50:52,825 Ventura. 10804 05:50:52,825 --> 05:50:53,458 Three of those four, as I 10805 05:50:53,458 --> 05:50:55,858 understand it have equity 10806 05:50:58,130 --> 05:50:58,864 programs and as I think either 10807 05:50:58,864 --> 05:50:59,532 of us were saying, the delivery 10808 05:50:59,532 --> 05:51:00,766 piece is the onramp to 10809 05:51:00,766 --> 05:51:03,766 the equity program in Long 10810 05:51:07,439 --> 05:51:08,207 Beach. 10811 05:51:08,207 --> 05:51:08,808 So what are and I trust 10812 05:51:08,808 --> 05:51:09,611 COUNCILMAN Foster to do 10813 05:51:09,611 --> 05:51:13,120 the work here But what what are 10814 05:51:13,120 --> 05:51:13,679 we kind of doing more broadly 10815 05:51:13,679 --> 05:51:16,679 to include the equity piece 10816 05:51:17,830 --> 05:51:19,483 since we're using their 10817 05:51:25,191 --> 05:51:25,891 regulatory framework that you 10818 05:51:25,891 --> 05:51:26,625 you'll have you don't have to 10819 05:51:26,625 --> 05:51:27,590 That's all right if you want it 10820 05:51:27,590 --> 05:51:29,590 by all means. 10821 05:51:30,280 --> 05:51:30,663 But it's also a question for 10822 05:51:30,663 --> 05:51:31,297 COUNCILMAN Foster and our 10823 05:51:31,297 --> 05:51:31,931 office has been working on 10824 05:51:31,931 --> 05:51:34,331 the cannabis social equity 10825 05:51:35,434 --> 05:51:36,135 program and proposed policy for 10826 05:51:36,135 --> 05:51:36,635 you know been working closely 10827 05:51:36,635 --> 05:51:37,270 together on that. 10828 05:51:37,270 --> 05:51:37,903 That was one of the first 10829 05:51:37,903 --> 05:51:40,303 questions asked when this 10830 05:51:42,800 --> 05:51:42,708 initial proposal came forward 10831 05:51:42,708 --> 05:51:43,409 was how it MAY incorporate an 10832 05:51:43,409 --> 05:51:43,742 impact Councilmember Foster's 10833 05:51:43,742 --> 05:51:45,742 effort. 10834 05:51:48,140 --> 05:51:48,648 And so as we get closer to 10835 05:51:48,648 --> 05:51:49,315 the finish line with that 10836 05:51:49,315 --> 05:51:50,160 proposed policy as this one 10837 05:51:50,160 --> 05:51:52,484 gets legs under it and starts 10838 05:51:52,484 --> 05:51:53,850 to be implemented, those are 10839 05:51:53,850 --> 05:51:53,719 two conversations that 10840 05:51:53,719 --> 05:51:54,387 absolutely have to happen 10841 05:51:54,387 --> 05:51:55,540 concurrently to ensure that 10842 05:51:55,540 --> 05:51:57,454 both are essentially feeding 10843 05:51:58,524 --> 05:51:59,425 into each other. 10844 05:51:59,425 --> 05:52:02,425 >> So okay, I appreciate that. 10845 05:52:04,530 --> 05:52:05,198 The last thing I will say is I 10846 05:52:05,198 --> 05:52:08,198 just will echo the comments 10847 05:52:10,169 --> 05:52:12,569 from Catherine Foster that 10848 05:52:16,750 --> 05:52:16,876 the further we allow those who 10849 05:52:16,876 --> 05:52:21,760 got their foot in the door for 10850 05:52:22,715 --> 05:52:23,282 the regulated industry to to to 10851 05:52:23,282 --> 05:52:25,682 sprint ahead, the more 10852 05:52:28,588 --> 05:52:29,255 difficult it is to make it 10853 05:52:29,255 --> 05:52:29,856 equity to eventually have an 10854 05:52:29,856 --> 05:52:32,256 equity program that will 10855 05:52:34,270 --> 05:52:37,270 actually be meaningful and we 10856 05:52:40,266 --> 05:52:41,330 have folks who were shut out 10857 05:52:41,330 --> 05:52:44,633 who were targeted just as much 10858 05:52:46,390 --> 05:52:47,600 for who they are and where they 10859 05:52:47,600 --> 05:52:51,206 were as as to what they were 10860 05:52:52,178 --> 05:52:52,912 actually doing. 10861 05:52:52,912 --> 05:52:53,579 We know the disproportionality 10862 05:52:53,579 --> 05:52:57,350 of the war on drugs and what 10863 05:52:57,350 --> 05:52:58,840 that has meant for generational 10864 05:52:58,840 --> 05:52:58,751 poverty, the disruption of 10865 05:52:58,751 --> 05:53:01,751 families and long term harm 10866 05:53:03,456 --> 05:53:06,456 that will take generations to 10867 05:53:09,562 --> 05:53:10,196 undo And it the cities the city 10868 05:53:10,196 --> 05:53:13,196 has made it a intentional 10869 05:53:15,535 --> 05:53:16,335 decision to start a race and 10870 05:53:16,335 --> 05:53:17,360 not even allow those folks to 10871 05:53:17,360 --> 05:53:17,671 not only not have their shoes 10872 05:53:17,671 --> 05:53:21,271 on yet they're not even at 10873 05:53:21,307 --> 05:53:22,800 the track yet And I think that 10874 05:53:22,800 --> 05:53:25,608 continues to be a concern And 10875 05:53:26,813 --> 05:53:27,514 my trust in Councilmember 10876 05:53:27,514 --> 05:53:29,914 Foster's commitment to making 10877 05:53:32,485 --> 05:53:33,286 sure that we get that piece up 10878 05:53:33,286 --> 05:53:36,886 and running in a meaningful way 10879 05:53:38,910 --> 05:53:38,591 is is significant. 10880 05:53:38,591 --> 05:53:39,292 But I understand 10881 05:53:39,292 --> 05:53:42,292 the frustration And so again, 10882 05:53:44,197 --> 05:53:44,864 the intent here I think is 10883 05:53:44,864 --> 05:53:45,532 there's a lot that we are 10884 05:53:45,532 --> 05:53:49,132 aiming to curb that I think 10885 05:53:49,135 --> 05:53:49,970 needs to be curbed. 10886 05:53:49,970 --> 05:53:50,604 I will never support the idea 10887 05:53:50,604 --> 05:53:53,400 of businesses operating in 10888 05:53:54,740 --> 05:53:54,608 the city without contributing 10889 05:53:54,608 --> 05:53:55,308 back to the city. 10890 05:53:55,308 --> 05:53:55,909 I'll never support the idea of 10891 05:53:55,909 --> 05:53:57,909 businesses operating in 10892 05:54:00,447 --> 05:54:01,114 the city and selling their 10893 05:54:01,114 --> 05:54:01,982 workers short and I want to 10894 05:54:01,982 --> 05:54:06,182 make sure that we do right by 10895 05:54:06,419 --> 05:54:10,619 those who were most harmed by a 10896 05:54:11,324 --> 05:54:12,250 war on drugs that has been 10897 05:54:12,250 --> 05:54:15,250 proven in every way imaginable 10898 05:54:16,363 --> 05:54:17,630 to have been extremely, 10899 05:54:17,630 --> 05:54:20,630 extremely harmful in a very 10900 05:54:22,535 --> 05:54:23,370 disproportionate way. 10901 05:54:23,370 --> 05:54:24,710 So with that I say thank you 10902 05:54:24,710 --> 05:54:27,710 again to Catherine Pompeo and 10903 05:54:27,541 --> 05:54:28,241 his team for bringing this 10904 05:54:28,241 --> 05:54:28,942 forward and look forward to 10905 05:54:28,942 --> 05:54:29,609 having the questions answered 10906 05:54:29,609 --> 05:54:32,609 that have been raised today. 10907 05:54:33,113 --> 05:54:33,613 Thank you. 10908 05:54:33,613 --> 05:54:33,980 >> All right. 10909 05:54:33,980 --> 05:54:34,614 Thank you. 10910 05:54:34,614 --> 05:54:35,315 Council member Eli Rivera. 10911 05:54:35,315 --> 05:54:35,649 We'll go back to Councilmember 10912 05:54:35,649 --> 05:54:36,160 Foster. 10913 05:54:36,160 --> 05:54:38,160 Thank you. 10914 05:54:38,251 --> 05:54:40,651 Just one last question 10915 05:54:43,256 --> 05:54:44,224 Hopefully I guess just process 10916 05:54:44,224 --> 05:54:48,424 wise as there is more work to 10917 05:54:49,229 --> 05:54:50,970 do Right. 10918 05:54:50,970 --> 05:54:53,330 We have this passes today I'm 10919 05:54:53,330 --> 05:54:53,767 assuming that's the first read 10920 05:54:53,767 --> 05:54:57,367 comes back for the second read. 10921 05:54:58,138 --> 05:55:01,738 I guess my question is timeline 10922 05:55:03,977 --> 05:55:08,177 wise and as we talk about cost 10923 05:55:09,249 --> 05:55:09,949 of service right our fee study 10924 05:55:09,949 --> 05:55:13,549 those types of things So what 10925 05:55:13,921 --> 05:55:14,521 happens when we are still going 10926 05:55:14,521 --> 05:55:15,188 through that process and 10927 05:55:15,188 --> 05:55:15,789 understanding just how this 10928 05:55:15,789 --> 05:55:17,789 will be operationalized? 10929 05:55:19,260 --> 05:55:19,526 I guess I will say And what 10930 05:55:19,526 --> 05:55:20,227 does that leave to 10931 05:55:20,227 --> 05:55:23,227 the individuals who MAY be 10932 05:55:24,298 --> 05:55:24,731 going through whatever they are 10933 05:55:24,731 --> 05:55:26,731 going through? 10934 05:55:29,203 --> 05:55:32,803 Let's say there is a county 10935 05:55:35,442 --> 05:55:36,210 equity individual who wants to 10936 05:55:36,210 --> 05:55:36,577 come in and sign up or do 10937 05:55:36,577 --> 05:55:38,577 something. 10938 05:55:40,180 --> 05:55:40,881 What does that do to their 10939 05:55:40,881 --> 05:55:43,881 business and their ability to 10940 05:55:45,218 --> 05:55:45,953 engage as we are trying to 10941 05:55:45,953 --> 05:55:46,620 figure out the operational side 10942 05:55:46,620 --> 05:55:50,657 of this and to where we are 10943 05:55:50,657 --> 05:55:51,325 able to function and understand 10944 05:55:51,325 --> 05:55:52,260 who you know because I'm 10945 05:55:52,260 --> 05:55:55,162 assuming if they go to court 10946 05:55:55,162 --> 05:55:56,290 who would be the legal not 10947 05:55:56,290 --> 05:55:59,290 legal not legal business entity 10948 05:56:00,670 --> 05:56:00,768 or what comes first, how does 10949 05:56:00,768 --> 05:56:01,435 that play out in terms of 10950 05:56:01,435 --> 05:56:04,435 the process of the ordinance 10951 05:56:05,172 --> 05:56:06,106 and its implementation? 10952 05:56:06,106 --> 05:56:09,510 Well, first this would be first 10953 05:56:09,510 --> 05:56:10,211 reading second reading 30 days 10954 05:56:10,211 --> 05:56:12,611 pass that implementation date 10955 05:56:14,140 --> 05:56:14,782 and we're asking for commitment 10956 05:56:14,782 --> 05:56:15,749 from the mayor's office to be 10957 05:56:15,749 --> 05:56:19,553 able to bring that fee study in 10958 05:56:19,553 --> 05:56:20,254 alignment with that timeline so 10959 05:56:20,254 --> 05:56:20,821 that we have certainty before 10960 05:56:20,821 --> 05:56:22,821 this ordinance becomes 10961 05:56:24,792 --> 05:56:25,459 effective because you can't 10962 05:56:25,459 --> 05:56:26,260 have an effective ordinance 10963 05:56:26,260 --> 05:56:28,426 with this tool without 10964 05:56:29,697 --> 05:56:29,997 the implementation and it can't 10965 05:56:29,997 --> 05:56:31,997 work. 10966 05:56:35,169 --> 05:56:35,836 So correct And I think it would 10967 05:56:35,836 --> 05:56:39,436 if that did happen it would 10968 05:56:39,740 --> 05:56:40,541 just become chaos. 10969 05:56:40,541 --> 05:56:41,108 So what I guess how are you 10970 05:56:41,108 --> 05:56:41,742 going to manage that? 10971 05:56:41,742 --> 05:56:44,742 What's the plan for that? 10972 05:56:44,778 --> 05:56:45,413 So as we go through the second 10973 05:56:45,413 --> 05:56:48,413 reading and if that passes 10974 05:56:49,816 --> 05:56:50,551 through council city treasurer 10975 05:56:50,551 --> 05:56:51,185 initiates the fee study item We 10976 05:56:51,185 --> 05:56:53,585 are up against legislative 10977 05:56:54,322 --> 05:56:54,588 recess at that time as well 10978 05:56:54,588 --> 05:56:55,389 too. 10979 05:56:55,389 --> 05:56:56,900 So there's a little bit of time 10980 05:56:56,900 --> 05:56:59,900 here after initial passage and 10981 05:56:59,126 --> 05:56:59,961 actual implementation. 10982 05:56:59,961 --> 05:57:00,695 I think during that portion as 10983 05:57:00,695 --> 05:57:01,395 you do have the commitment from 10984 05:57:01,395 --> 05:57:04,966 our office that this does not 10985 05:57:04,966 --> 05:57:05,433 go live until that fee is 10986 05:57:05,433 --> 05:57:06,330 obviously there. 10987 05:57:06,330 --> 05:57:09,633 And so it's a it's a 10988 05:57:09,937 --> 05:57:10,738 communication piece really. 10989 05:57:10,738 --> 05:57:11,272 And so I think the second part 10990 05:57:11,272 --> 05:57:12,600 of the request from 10991 05:57:12,600 --> 05:57:14,876 Councilmember Campo was for our 10992 05:57:14,876 --> 05:57:15,509 assistance in coordinating with 10993 05:57:15,509 --> 05:57:16,110 other regional entities as 10994 05:57:16,110 --> 05:57:18,110 Summer mentioned earlier 10995 05:57:20,810 --> 05:57:20,781 incorporating equity pieces 10996 05:57:20,781 --> 05:57:21,449 that the county already has in 10997 05:57:21,449 --> 05:57:24,152 place into that fee study I 10998 05:57:24,152 --> 05:57:25,190 think is is a good step forward 10999 05:57:25,190 --> 05:57:25,787 And so there's quite a bit of 11000 05:57:25,787 --> 05:57:28,787 work here after initial passage 11001 05:57:29,857 --> 05:57:30,525 but we got to get this passed 11002 05:57:30,525 --> 05:57:31,392 to initiate that work And so 11003 05:57:31,392 --> 05:57:34,629 it's really going to be a 11004 05:57:34,629 --> 05:57:35,329 communication piece from both 11005 05:57:35,329 --> 05:57:36,163 of our offices on this council 11006 05:57:36,163 --> 05:57:39,667 to educate folks on what to 11007 05:57:39,667 --> 05:57:40,401 expect and then have a clear 11008 05:57:40,401 --> 05:57:41,200 runway as the fee actually gets 11009 05:57:41,200 --> 05:57:43,402 adopted by this council. 11010 05:57:44,172 --> 05:57:44,605 We have a firm implementation 11011 05:57:44,605 --> 05:57:44,906 date in mind. 11012 05:57:44,906 --> 05:57:45,907 Okay. 11013 05:57:45,907 --> 05:57:49,510 So what I'm hearing is if for 11014 05:57:49,510 --> 05:57:52,510 some reason that commitment in 11015 05:57:53,681 --> 05:57:55,681 regards to operationalizing 11016 05:57:58,686 --> 05:57:59,454 this is not stood up in time as 11017 05:57:59,454 --> 05:58:03,540 we go through this second read 11018 05:58:03,425 --> 05:58:04,158 then are we going to pause or 11019 05:58:04,158 --> 05:58:07,158 timeline that correctly so that 11020 05:58:07,895 --> 05:58:08,596 we are not so we don't have an 11021 05:58:08,596 --> 05:58:11,596 ordinance that has passed and 11022 05:58:13,340 --> 05:58:13,801 made it through and then we are 11023 05:58:13,801 --> 05:58:16,801 in trouble trying to scramble 11024 05:58:18,239 --> 05:58:21,839 and you have this clause in 11025 05:58:22,210 --> 05:58:22,543 here where folks can just start 11026 05:58:22,543 --> 05:58:24,543 filing. 11027 05:58:26,948 --> 05:58:27,615 So how are we managing that? 11028 05:58:27,615 --> 05:58:27,949 >> You understand what I'm 11029 05:58:27,949 --> 05:58:28,583 asking? 11030 05:58:28,583 --> 05:58:28,917 I totally get what you're 11031 05:58:28,917 --> 05:58:30,917 saying. 11032 05:58:32,554 --> 05:58:33,254 So I think I think there need 11033 05:58:33,254 --> 05:58:36,558 to be a discussion maybe with 11034 05:58:36,558 --> 05:58:37,458 city attorney's office here on 11035 05:58:37,458 --> 05:58:38,159 if we push out a second reading 11036 05:58:38,159 --> 05:58:38,760 and initiate to basically take 11037 05:58:38,760 --> 05:58:41,760 this as the direction of 11038 05:58:41,863 --> 05:58:42,564 the council saying yes, proceed 11039 05:58:42,564 --> 05:58:43,297 with establishing the fee and 11040 05:58:43,297 --> 05:58:46,297 then going through that process 11041 05:58:46,735 --> 05:58:47,435 to conduct the study and have 11042 05:58:47,435 --> 05:58:49,804 the conversations I described 11043 05:58:49,804 --> 05:58:50,505 earlier before returning for 11044 05:58:50,505 --> 05:58:51,172 the second reading Similar to 11045 05:58:51,172 --> 05:58:51,806 how we do things if it's a 11046 05:58:51,806 --> 05:58:54,206 meeting confer approach or 11047 05:58:55,176 --> 05:58:55,844 anything like that that way we 11048 05:58:55,844 --> 05:58:56,378 can have a clear and clean 11049 05:58:56,378 --> 05:58:58,378 implementation date. 11050 05:58:59,547 --> 05:59:00,215 I think both options work here 11051 05:59:00,215 --> 05:59:00,849 but I completely understand 11052 05:59:00,849 --> 05:59:03,849 where your concerns are of 11053 05:59:04,152 --> 05:59:04,786 basically creating a 11054 05:59:04,786 --> 05:59:05,486 opportunity for predatory 11055 05:59:05,486 --> 05:59:05,854 litigation to come through and 11056 05:59:05,854 --> 05:59:07,854 in place. 11057 05:59:08,757 --> 05:59:09,570 So get that. 11058 05:59:09,570 --> 05:59:09,791 Okay. 11059 05:59:09,791 --> 05:59:10,725 Well I think that's something 11060 05:59:10,725 --> 05:59:14,925 that we need to make sure we 11061 05:59:17,399 --> 05:59:18,103 have a clear understanding and 11062 05:59:18,103 --> 05:59:21,103 don't get ahead of ourselves 11063 05:59:22,804 --> 05:59:23,471 and create other issues And 11064 05:59:23,471 --> 05:59:26,471 then I'm sure creating more 11065 05:59:27,843 --> 05:59:28,477 barriers for folks who have 11066 05:59:28,477 --> 05:59:30,877 already been impacted from 11067 05:59:32,680 --> 05:59:33,448 the war on drugs right. 11068 05:59:33,448 --> 05:59:37,480 So so MADAM City Attorney, I 11069 05:59:37,520 --> 05:59:37,719 guess I will in the city 11070 05:59:37,719 --> 05:59:38,353 attorney's office We'll add 11071 05:59:38,353 --> 05:59:40,753 that to our conversation. 11072 05:59:42,391 --> 05:59:43,580 Um, as we are preparing and 11073 05:59:43,580 --> 05:59:46,580 continuing to move this item 11074 05:59:46,194 --> 05:59:46,962 forward I just want to make 11075 05:59:46,962 --> 05:59:47,629 sure that we are not getting 11076 05:59:47,629 --> 05:59:50,629 ahead of ourselves and doing 11077 05:59:51,266 --> 05:59:51,867 more of a disservice and that 11078 05:59:51,867 --> 05:59:52,434 what we are trying to 11079 05:59:52,434 --> 05:59:52,734 accomplish with this. 11080 05:59:52,734 --> 05:59:54,734 Okay. 11081 05:59:56,204 --> 05:59:56,872 Thank you. 11082 05:59:56,872 --> 05:59:57,572 Council PRESIDENT All right. 11083 05:59:57,572 --> 05:59:59,972 Thank you Councilmember Foster 11084 06:00:00,976 --> 06:00:02,440 Not see anybody else and light 11085 06:00:02,440 --> 06:00:06,810 I'll ask a few questions of my 11086 06:00:06,810 --> 06:00:09,810 own one Thank you Councilmember 11087 06:00:09,551 --> 06:00:10,185 Camp you and your d seven team 11088 06:00:10,185 --> 06:00:10,618 on This is something we've 11089 06:00:10,618 --> 06:00:12,618 talked about. 11090 06:00:13,755 --> 06:00:14,489 We have acknowledged it and it 11091 06:00:14,489 --> 06:00:15,123 never went anywhere even though 11092 06:00:15,123 --> 06:00:17,523 we recognize the delivery 11093 06:00:18,726 --> 06:00:19,494 services were happening there 11094 06:00:19,494 --> 06:00:23,694 And as I think we've all kind 11095 06:00:23,765 --> 06:00:24,533 of landed on the inability to 11096 06:00:24,533 --> 06:00:27,533 enforce by city staff was 11097 06:00:29,104 --> 06:00:29,838 probably one of the reasons 11098 06:00:29,838 --> 06:00:30,538 that we were just kind of stuck 11099 06:00:30,538 --> 06:00:33,509 and acknowledging there was a 11100 06:00:33,509 --> 06:00:34,209 problem without any kind of 11101 06:00:34,209 --> 06:00:34,943 solution And the private right 11102 06:00:34,943 --> 06:00:38,280 of action is that missing piece 11103 06:00:38,280 --> 06:00:38,880 that allows us to actually that 11104 06:00:38,880 --> 06:00:41,280 will be brought forward. 11105 06:00:42,818 --> 06:00:43,218 So thank you for working 11106 06:00:43,218 --> 06:00:43,819 through it. 11107 06:00:43,819 --> 06:00:46,819 So the questions that go 11108 06:00:47,790 --> 06:00:48,490 through my mind are unlike most 11109 06:00:48,490 --> 06:00:50,490 ordinances and implementations 11110 06:00:52,828 --> 06:00:53,529 that follow afterwards, it's 11111 06:00:53,529 --> 06:00:55,929 the city that's doing 11112 06:00:57,132 --> 06:00:57,833 the enforcement. 11113 06:00:57,833 --> 06:00:58,434 This ordinance actually has a 11114 06:00:58,434 --> 06:01:00,834 private right of action. 11115 06:01:01,804 --> 06:01:02,571 Is there language in today's 11116 06:01:02,571 --> 06:01:06,171 motion that says this does not 11117 06:01:06,542 --> 06:01:07,242 go into effect until we 11118 06:01:07,242 --> 06:01:10,242 actually have a permit process 11119 06:01:11,380 --> 06:01:12,147 in place That's not in 11120 06:01:12,147 --> 06:01:15,147 the motion language but if 11121 06:01:16,685 --> 06:01:17,386 the maker would like to we go 11122 06:01:17,386 --> 06:01:18,153 to the first reading, we go to 11123 06:01:18,153 --> 06:01:21,753 the second reading we have an 11124 06:01:21,957 --> 06:01:22,825 ordinance and somebody named 11125 06:01:22,825 --> 06:01:25,661 Lady Named says I just found 11126 06:01:25,661 --> 06:01:26,228 somebody who doesn't have a 11127 06:01:26,228 --> 06:01:26,962 permit and compliance. 11128 06:01:26,962 --> 06:01:30,532 I'm going to initiate a private 11129 06:01:30,532 --> 06:01:31,200 right of action Go to my be 11130 06:01:31,200 --> 06:01:33,600 bound with operations side. 11131 06:01:35,271 --> 06:01:36,105 Is it a crazy idea? 11132 06:01:36,105 --> 06:01:39,705 I know there's some big money 11133 06:01:44,580 --> 06:01:45,280 there that council PRESIDENT 11134 06:01:45,280 --> 06:01:48,880 Are you are you asking if 11135 06:01:49,418 --> 06:01:50,252 the private right of action can 11136 06:01:50,252 --> 06:01:50,953 be a force enforced if the city 11137 06:01:50,953 --> 06:01:53,353 hasn't City Treasurer's office 11138 06:01:54,390 --> 06:01:54,990 hasn't created the license 11139 06:01:54,990 --> 06:01:55,691 structure or the permit 11140 06:01:55,691 --> 06:01:58,691 structure for an outside of 11141 06:01:59,261 --> 06:01:59,962 the city cannabis delivery 11142 06:01:59,962 --> 06:02:02,962 program or a business to 11143 06:02:04,400 --> 06:02:04,867 actually get and therefore 11144 06:02:04,867 --> 06:02:05,468 follow the law. 11145 06:02:05,468 --> 06:02:05,901 >> I guess that's that's 11146 06:02:05,901 --> 06:02:07,901 the question. 11147 06:02:10,606 --> 06:02:11,273 I think that it would Okay Well 11148 06:02:11,273 --> 06:02:14,610 first to even prove it you'd 11149 06:02:14,610 --> 06:02:15,311 have to prove harm or you'd 11150 06:02:15,311 --> 06:02:18,681 have to show that you're, you 11151 06:02:18,681 --> 06:02:19,315 know, harmed economically But I 11152 06:02:19,315 --> 06:02:21,715 guess strictly speaking it 11153 06:02:27,230 --> 06:02:27,341 doesn't elucidate that exactly 11154 06:02:27,341 --> 06:02:28,900 . 11155 06:02:28,900 --> 06:02:31,327 I mean code is committed to 11156 06:02:31,327 --> 06:02:32,270 the operation cited dft or city 11157 06:02:32,270 --> 06:02:32,695 treasurers would enforce that. 11158 06:02:32,695 --> 06:02:36,980 We actually had it in place 11159 06:02:36,980 --> 06:02:36,699 certainly Well to be very to be 11160 06:02:36,699 --> 06:02:37,333 very clear, there is an 11161 06:02:37,333 --> 06:02:37,967 enforcement mechanism for 11162 06:02:37,967 --> 06:02:40,436 the city that says a city 11163 06:02:40,436 --> 06:02:41,137 manager shall promulgate rules 11164 06:02:41,137 --> 06:02:44,137 and regulations to do that. 11165 06:02:44,974 --> 06:02:45,674 So it's not as if we're not 11166 06:02:45,674 --> 06:02:46,275 able to create a system for 11167 06:02:46,275 --> 06:02:48,275 internal administrative 11168 06:02:49,946 --> 06:02:51,946 enforcement. 11169 06:02:55,485 --> 06:02:56,152 So I would say it's almost 11170 06:02:56,152 --> 06:02:56,853 nonsensical to think that a 11171 06:02:56,853 --> 06:02:59,722 private right of action could 11172 06:02:59,722 --> 06:03:00,389 come forward if the city 11173 06:03:00,389 --> 06:03:02,789 manager, the mayor's office 11174 06:03:03,893 --> 06:03:04,694 through the departments hasn't 11175 06:03:04,694 --> 06:03:05,428 created an actual license to 11176 06:03:05,428 --> 06:03:08,864 apply for because how could you 11177 06:03:08,864 --> 06:03:09,532 possibly go forward and try to 11178 06:03:09,532 --> 06:03:10,233 follow the law as an outside 11179 06:03:10,233 --> 06:03:13,233 delivery company if it doesn't 11180 06:03:13,937 --> 06:03:14,637 exist? 11181 06:03:14,637 --> 06:03:15,872 Yeah but the city attorney 11182 06:03:15,872 --> 06:03:19,472 agree with him Either one of 11183 06:03:21,477 --> 06:03:22,111 you And as Deputy City attorney 11184 06:03:22,111 --> 06:03:22,412 David Carlin to respond to 11185 06:03:22,412 --> 06:03:24,412 that? 11186 06:03:25,815 --> 06:03:26,416 >> Yes, I would agree with that 11187 06:03:26,416 --> 06:03:28,416 proposition that's been 11188 06:03:30,186 --> 06:03:30,486 discussed by Councilmember You 11189 06:03:30,486 --> 06:03:31,254 . 11190 06:03:31,254 --> 06:03:31,921 It's a private right of action 11191 06:03:31,921 --> 06:03:32,555 could not be initiated until 11192 06:03:32,555 --> 06:03:35,555 there actually is a permit 11193 06:03:35,592 --> 06:03:36,192 process in place That I guess 11194 06:03:36,192 --> 06:03:36,893 to answer that question 11195 06:03:36,893 --> 06:03:38,893 specifically, there's nothing 11196 06:03:40,496 --> 06:03:41,231 ever to stop somebody from 11197 06:03:41,231 --> 06:03:41,598 filing a lawsuit as I think we 11198 06:03:41,598 --> 06:03:42,498 all know. 11199 06:03:42,498 --> 06:03:46,200 But to succeed in that lawsuit 11200 06:03:46,200 --> 06:03:46,703 is you'd have to have a permit 11201 06:03:46,703 --> 06:03:48,238 process in place to show that 11202 06:03:48,238 --> 06:03:48,538 somebody is in violation of it 11203 06:03:48,538 --> 06:03:49,380 . 11204 06:03:49,380 --> 06:03:51,380 >> That's right. 11205 06:03:53,810 --> 06:03:54,611 Okay. 11206 06:03:54,611 --> 06:03:55,545 I got three lawyers saying yes 11207 06:03:55,545 --> 06:03:59,745 so I'm going to back off at 11208 06:04:03,286 --> 06:04:04,154 the engineer the for those of 11209 06:04:04,154 --> 06:04:07,924 us that are not steeped in this 11210 06:04:07,924 --> 06:04:08,625 whole ordinance, there's no 11211 06:04:08,625 --> 06:04:09,159 limit on the number of permits 11212 06:04:09,159 --> 06:04:11,559 that can be issued. 11213 06:04:12,429 --> 06:04:12,929 Is that correct? 11214 06:04:12,929 --> 06:04:13,697 >> That's correct. 11215 06:04:13,697 --> 06:04:16,867 As long as it's state licensed 11216 06:04:16,867 --> 06:04:17,767 there was an assumption made 11217 06:04:17,767 --> 06:04:21,538 that you have to have both a I 11218 06:04:21,538 --> 06:04:22,405 think a business tax 11219 06:04:22,405 --> 06:04:25,405 certificate and the permit and 11220 06:04:27,444 --> 06:04:28,440 that the expectation is that 11221 06:04:28,440 --> 06:04:28,712 that permit we know what 11222 06:04:28,712 --> 06:04:29,112 the business tax certificate 11223 06:04:29,112 --> 06:04:31,112 amounts are. 11224 06:04:32,449 --> 06:04:33,150 It's kind of a throwaway It's 11225 06:04:33,150 --> 06:04:36,150 probably the cheapest fee that 11226 06:04:39,220 --> 06:04:42,220 we have on the books. 11227 06:04:44,127 --> 06:04:44,794 But if what if survey the fee 11228 06:04:44,794 --> 06:04:45,495 analysis comes back and said 11229 06:04:45,495 --> 06:04:48,131 well yeah, we're not going to 11230 06:04:48,131 --> 06:04:48,432 do anything for 75 bucks or 150 11231 06:04:48,432 --> 06:04:49,132 bucks. 11232 06:04:49,132 --> 06:04:49,833 I don't even know what permit 11233 06:04:49,833 --> 06:04:52,102 you could get for that. 11234 06:04:52,102 --> 06:04:52,535 And it comes back of 300 bucks 11235 06:04:52,535 --> 06:04:54,535 and 500 bucks. 11236 06:04:56,273 --> 06:04:56,706 We're just going to we could 11237 06:04:56,706 --> 06:04:57,541 subsidize it. 11238 06:04:57,541 --> 06:05:01,741 We don't have to have full cost 11239 06:05:01,778 --> 06:05:02,446 recovery but I just want to set 11240 06:05:02,446 --> 06:05:05,446 expectations that in fact it 11241 06:05:06,149 --> 06:05:06,950 MAY not come in that an 11242 06:05:06,950 --> 06:05:07,617 expensive so and then we can 11243 06:05:07,617 --> 06:05:08,510 deal with it because we can 11244 06:05:08,510 --> 06:05:10,510 subsidize it. 11245 06:05:11,254 --> 06:05:12,210 We don't have to charge full 11246 06:05:12,210 --> 06:05:12,823 cost recovery and we can do as 11247 06:05:12,823 --> 06:05:15,823 I think it was suggested 11248 06:05:16,493 --> 06:05:17,361 waivers or carve out I've done 11249 06:05:17,361 --> 06:05:20,864 some of those and some of 11250 06:05:20,864 --> 06:05:21,571 the fees. 11251 06:05:21,571 --> 06:05:22,432 The other question is I think 11252 06:05:22,432 --> 06:05:25,636 every time that we've gone and 11253 06:05:25,636 --> 06:05:26,503 done update our fees and 11254 06:05:26,503 --> 06:05:30,103 penalties, a lot of us have 11255 06:05:30,307 --> 06:05:31,800 grumbled that we don't think 11256 06:05:31,800 --> 06:05:34,608 those rates are high enough to 11257 06:05:34,945 --> 06:05:35,579 actually be a disincentive to 11258 06:05:35,579 --> 06:05:36,313 someone breaking the law. 11259 06:05:36,313 --> 06:05:39,616 I can think lots and lots of 11260 06:05:39,616 --> 06:05:40,584 examples of that. 11261 06:05:40,584 --> 06:05:44,454 This sets a whole new bar of 11262 06:05:44,454 --> 06:05:46,854 jacking up 10,000 per violation 11263 06:05:47,758 --> 06:05:48,458 for abatement $20,000 a day for 11264 06:05:48,458 --> 06:05:52,580 a civil penalty That opens up 11265 06:05:52,429 --> 06:05:52,863 the universe in terms of what 11266 06:05:52,863 --> 06:05:53,397 those can be. 11267 06:05:53,397 --> 06:05:54,264 Why is this okay? 11268 06:05:54,264 --> 06:05:57,668 And when we don't do that with 11269 06:05:57,668 --> 06:05:58,535 any other fee and penalty, was 11270 06:05:58,535 --> 06:06:02,506 that just a policy call or was 11271 06:06:02,506 --> 06:06:03,140 there actually something that 11272 06:06:03,140 --> 06:06:03,474 limited how much we could 11273 06:06:03,474 --> 06:06:04,141 charge? 11274 06:06:04,141 --> 06:06:07,770 I don't know Who wants to 11275 06:06:07,770 --> 06:06:07,811 answer that. 11276 06:06:07,811 --> 06:06:08,545 I can start with the policy 11277 06:06:08,545 --> 06:06:10,945 direction the fee establishment 11278 06:06:12,115 --> 06:06:12,816 amount at $20,000 was a policy 11279 06:06:12,816 --> 06:06:16,416 decision based off of the city 11280 06:06:16,487 --> 06:06:19,890 of L.A. Is a penalty structure. 11281 06:06:19,890 --> 06:06:20,658 The $10,000 value comes from 11282 06:06:20,658 --> 06:06:24,258 what is existing in the land 11283 06:06:24,995 --> 06:06:25,663 development code that was 11284 06:06:25,663 --> 06:06:26,196 recently updated as part of 11285 06:06:26,196 --> 06:06:28,596 the JUNE 8th action. 11286 06:06:29,500 --> 06:06:33,100 So that is the baseline figure 11287 06:06:34,772 --> 06:06:35,372 that we were operating off of. 11288 06:06:35,372 --> 06:06:35,639 I'll leave it there. 11289 06:06:35,639 --> 06:06:37,639 MR.. 11290 06:06:39,443 --> 06:06:40,110 So legally again this literally 11291 06:06:40,110 --> 06:06:43,110 goes to the United States 11292 06:06:44,348 --> 06:06:45,150 Constitution and the Eighth 11293 06:06:45,150 --> 06:06:45,749 Amendment and the excessive 11294 06:06:45,749 --> 06:06:49,453 fine clause It would have to be 11295 06:06:49,453 --> 06:06:50,154 to be unlawful to be grossly 11296 06:06:50,154 --> 06:06:50,454 disproportionate to the actual 11297 06:06:50,454 --> 06:06:52,454 fence. 11298 06:06:53,491 --> 06:06:54,358 Again, this is a fee that's up 11299 06:06:54,358 --> 06:06:57,358 to $20,000 per day that a 11300 06:06:58,228 --> 06:06:59,960 violation exists. 11301 06:06:59,960 --> 06:06:59,864 And this would be I guess I 11302 06:06:59,864 --> 06:07:03,000 should say this is the judicial 11303 06:07:03,000 --> 06:07:04,340 civil penalty portion of this. 11304 06:07:04,340 --> 06:07:08,234 So a judge would have to factor 11305 06:07:08,472 --> 06:07:12,672 in what he or she would decide 11306 06:07:12,910 --> 06:07:13,210 would be judicially imposed. 11307 06:07:13,210 --> 06:07:14,345 Right. 11308 06:07:14,345 --> 06:07:18,316 I mean so it's not it's not a 11309 06:07:18,316 --> 06:07:18,749 guarantee $20,000 if we put a 11310 06:07:18,749 --> 06:07:19,500 ceiling on it. 11311 06:07:19,500 --> 06:07:21,500 Okay. 11312 06:07:23,870 --> 06:07:26,870 Fair enough Because again, we 11313 06:07:27,892 --> 06:07:28,659 have private right of action. 11314 06:07:28,659 --> 06:07:28,960 The city's policy generally has 11315 06:07:28,960 --> 06:07:29,660 a ban. 11316 06:07:29,660 --> 06:07:32,430 We're not looking for revenue. 11317 06:07:32,430 --> 06:07:33,300 We're looking for compliance by 11318 06:07:33,300 --> 06:07:35,430 private right of action 11319 06:07:37,101 --> 06:07:37,535 probably assume has no such 11320 06:07:37,535 --> 06:07:38,335 strings. 11321 06:07:38,335 --> 06:07:41,939 They don't have to say Did you 11322 06:07:41,939 --> 06:07:42,740 not know that there was a new 11323 06:07:42,740 --> 06:07:43,407 law that you have to comply 11324 06:07:43,407 --> 06:07:46,744 with that they can just drag 11325 06:07:46,744 --> 06:07:47,780 them into court, is that 11326 06:07:47,780 --> 06:07:49,780 correct? 11327 06:07:51,182 --> 06:07:51,949 Again, once the permit process 11328 06:07:51,949 --> 06:07:52,416 is up and running, yes, that 11329 06:07:52,416 --> 06:07:54,416 that is correct. 11330 06:07:56,420 --> 06:07:57,188 Okay. 11331 06:07:57,188 --> 06:07:57,888 And as I think others said, 11332 06:07:57,888 --> 06:07:58,589 communications are going to be 11333 06:07:58,589 --> 06:08:01,359 a big part of this to try to 11334 06:08:01,359 --> 06:08:02,590 spread the word that not only 11335 06:08:02,590 --> 06:08:02,760 is there a requirement but it 11336 06:08:02,760 --> 06:08:05,960 could be enforced immediately 11337 06:08:05,960 --> 06:08:08,960 unlike how the city typically 11338 06:08:09,534 --> 06:08:10,401 acts. 11339 06:08:10,401 --> 06:08:14,472 I think the one question that I 11340 06:08:14,472 --> 06:08:15,339 didn't hear from my colleagues 11341 06:08:15,339 --> 06:08:16,700 was we got a number of folks 11342 06:08:16,700 --> 06:08:18,407 who apparently operate under 11343 06:08:19,711 --> 06:08:22,111 the county cannabis equity 11344 06:08:24,148 --> 06:08:24,816 program. 11345 06:08:24,816 --> 06:08:25,516 I'm not familiar what are 11346 06:08:25,516 --> 06:08:28,516 the requirements that they had 11347 06:08:29,187 --> 06:08:29,921 to go through to qualify or get 11348 06:08:29,921 --> 06:08:33,521 a permit or whatever the county 11349 06:08:33,758 --> 06:08:34,192 does versus what this ordinance 11350 06:08:34,192 --> 06:08:35,126 will require? 11351 06:08:35,126 --> 06:08:38,726 Is there any differences or any 11352 06:08:38,796 --> 06:08:39,330 added obligations or 11353 06:08:39,330 --> 06:08:41,330 differences between 11354 06:08:43,301 --> 06:08:43,968 the county's permit and this 11355 06:08:43,968 --> 06:08:44,302 proposed permit The counties 11356 06:08:44,302 --> 06:08:44,969 permit? 11357 06:08:44,969 --> 06:08:47,369 From our conversations they 11358 06:08:48,106 --> 06:08:48,806 have four categories and 11359 06:08:48,806 --> 06:08:49,474 they're all land use based So 11360 06:08:49,474 --> 06:08:51,874 their delivery permit also 11361 06:08:53,244 --> 06:08:54,450 include is the facility itself 11362 06:08:54,450 --> 06:08:57,645 and they have a flat fee 11363 06:08:58,283 --> 06:08:59,170 assessed And I know we have 11364 06:08:59,170 --> 06:08:59,951 some county operators here they 11365 06:08:59,951 --> 06:09:00,919 can give the specifics on fees 11366 06:09:00,919 --> 06:09:04,519 but it's in the thousands of 11367 06:09:06,910 --> 06:09:06,724 dollars That's for the license 11368 06:09:06,724 --> 06:09:09,124 for the counties program. 11369 06:09:10,761 --> 06:09:11,462 An operator that's operating 11370 06:09:11,462 --> 06:09:12,230 social equity or not still has 11371 06:09:12,230 --> 06:09:15,660 to obtain their state license 11372 06:09:15,660 --> 06:09:15,833 both at the same time. 11373 06:09:15,833 --> 06:09:19,337 So they would have to obtain 11374 06:09:19,337 --> 06:09:20,370 their state license their 11375 06:09:20,370 --> 06:09:20,672 license to the county as a 11376 06:09:20,672 --> 06:09:22,672 separate licensing process 11377 06:09:23,305 --> 06:09:25,705 application fee And that's 11378 06:09:27,375 --> 06:09:28,343 the county what the city is 11379 06:09:28,343 --> 06:09:31,343 proposing in this ordinance is 11380 06:09:32,347 --> 06:09:32,948 the registration, 11381 06:09:32,948 --> 06:09:33,682 the commercial business 11382 06:09:33,682 --> 06:09:34,382 registration to do business and 11383 06:09:34,382 --> 06:09:37,252 conduct business in the city. 11384 06:09:37,252 --> 06:09:37,953 So it's not a land use permit 11385 06:09:37,953 --> 06:09:41,256 in that sense It's a business 11386 06:09:41,256 --> 06:09:41,890 registration that it's intended 11387 06:09:41,890 --> 06:09:44,290 to complement the existing 11388 06:09:46,128 --> 06:09:46,594 cannabis non cannabis business 11389 06:09:46,594 --> 06:09:47,295 tax certificate. 11390 06:09:47,295 --> 06:09:50,295 So if I understand correctly 11391 06:09:51,432 --> 06:09:52,133 the only new requirement for 11392 06:09:52,133 --> 06:09:55,733 anybody who has a permit or 11393 06:09:56,372 --> 06:09:57,172 license through the county is 11394 06:09:57,172 --> 06:09:57,639 to fill out an online form. 11395 06:09:57,639 --> 06:09:59,639 That's correct. 11396 06:10:01,420 --> 06:10:01,877 That's it. 11397 06:10:01,877 --> 06:10:05,477 So and the tax certificate and 11398 06:10:06,480 --> 06:10:09,451 then the permit fee which we 11399 06:10:09,451 --> 06:10:09,852 hope is $150 range. 11400 06:10:09,852 --> 06:10:11,852 >> Okay. 11401 06:10:14,923 --> 06:10:15,357 And I think that answers all 11402 06:10:15,357 --> 06:10:16,124 the questions. 11403 06:10:16,124 --> 06:10:19,724 So thank you very much for 11404 06:10:19,728 --> 06:10:20,429 answering the questions. 11405 06:10:20,429 --> 06:10:20,729 Thank you for working through 11406 06:10:20,729 --> 06:10:22,729 this. 11407 06:10:23,933 --> 06:10:24,700 I know some of the folks that 11408 06:10:24,700 --> 06:10:25,501 were in opposition to this are 11409 06:10:25,501 --> 06:10:28,704 not going to be satisfied with 11410 06:10:28,704 --> 06:10:31,704 the dialog here going forward 11411 06:10:34,943 --> 06:10:35,265 but I will be in support of 11412 06:10:35,265 --> 06:10:35,978 this. 11413 06:10:35,978 --> 06:10:36,445 So Councilmember Hemphill Thank 11414 06:10:36,445 --> 06:10:38,445 you, counselors. 11415 06:10:38,981 --> 06:10:39,515 I'll just be very brief. 11416 06:10:39,515 --> 06:10:40,249 MR. Carlin mentioned 11417 06:10:40,249 --> 06:10:42,249 constitutional protections that 11418 06:10:43,285 --> 06:10:43,986 clicked in my mind The Doctor 11419 06:10:43,986 --> 06:10:44,687 There would be a due process 11420 06:10:44,687 --> 06:10:48,287 problem for the city to create 11421 06:10:48,457 --> 06:10:49,158 a law but not create the permit 11422 06:10:49,158 --> 06:10:52,562 to enforce the law and then go 11423 06:10:52,562 --> 06:10:53,428 someone from a private reaction 11424 06:10:53,428 --> 06:10:54,129 go to a court to say this 11425 06:10:54,129 --> 06:10:54,730 person doesn't have the permit 11426 06:10:54,730 --> 06:10:57,730 that is required by law. 11427 06:10:58,000 --> 06:10:58,968 So I think it's a I think we 11428 06:10:58,968 --> 06:11:02,771 can say with a high degree of 11429 06:11:02,771 --> 06:11:03,472 certainty that no court would 11430 06:11:03,472 --> 06:11:06,472 allow a private private right 11431 06:11:06,742 --> 06:11:07,209 of action lawsuit if we haven't 11432 06:11:07,209 --> 06:11:07,943 taken the steps. 11433 06:11:07,943 --> 06:11:10,343 There's also equitable remedies 11434 06:11:11,470 --> 06:11:11,813 under the law to save. 11435 06:11:11,813 --> 06:11:12,481 How could I know I was 11436 06:11:12,481 --> 06:11:13,115 violating the law if I never 11437 06:11:13,115 --> 06:11:16,115 had the ability to follow 11438 06:11:16,218 --> 06:11:16,886 the law itself? 11439 06:11:16,886 --> 06:11:17,653 So I appreciate MR. Carlin 11440 06:11:17,653 --> 06:11:21,253 bringing up that phrase so it 11441 06:11:21,357 --> 06:11:21,691 would trigger that history 11442 06:11:21,691 --> 06:11:22,391 lesson. 11443 06:11:22,391 --> 06:11:25,561 Well, we all learned a little 11444 06:11:25,561 --> 06:11:25,962 bit about the Constitution. 11445 06:11:25,962 --> 06:11:26,829 Okay. 11446 06:11:26,829 --> 06:11:30,429 I think I've gotten all my 11447 06:11:30,600 --> 06:11:31,334 questions answered about again 11448 06:11:31,334 --> 06:11:33,734 thank you, Councilmember Campo, 11449 06:11:35,370 --> 06:11:36,390 for finally solving the missing 11450 06:11:36,390 --> 06:11:36,738 piece to regulate something 11451 06:11:36,738 --> 06:11:39,876 that we've talked about for a 11452 06:11:39,876 --> 06:11:40,709 very long time. 11453 06:11:40,709 --> 06:11:43,709 I look forward to Councilmember 11454 06:11:44,414 --> 06:11:44,880 Foster and his work at the city 11455 06:11:44,880 --> 06:11:45,514 level. 11456 06:11:45,514 --> 06:11:46,480 Thank you to staff for 11457 06:11:46,480 --> 06:11:48,480 navigating this and 11458 06:11:49,585 --> 06:11:50,219 the research that you did to 11459 06:11:50,219 --> 06:11:50,953 bring bring this forward. 11460 06:11:50,953 --> 06:11:54,553 So with that I don't see 11461 06:11:55,391 --> 06:11:56,920 anybody else on the lights. 11462 06:11:56,920 --> 06:11:56,692 We have a motion by 11463 06:11:56,692 --> 06:11:57,360 Councilmember Campo and 11464 06:11:57,360 --> 06:12:00,360 the second by council member 11465 06:12:00,396 --> 06:12:00,963 Von Wilbert that we can't 11466 06:12:00,963 --> 06:12:01,564 please call the roll. 11467 06:12:01,564 --> 06:12:01,898 I have set up the voting 11468 06:12:01,898 --> 06:12:03,898 system. 11469 06:12:11,174 --> 06:12:13,574 Please cast your vote. 11470 06:12:16,346 --> 06:12:17,460 The motion passes unanimously 11471 06:12:17,460 --> 06:12:17,447 with District two and district 11472 06:12:17,447 --> 06:12:19,447 date absent. 11473 06:12:21,284 --> 06:12:21,851 All right. 11474 06:12:21,851 --> 06:12:22,151 Thank you again. 11475 06:12:22,151 --> 06:12:23,286 Okay. 11476 06:12:23,286 --> 06:12:25,855 I need to do a little bit of a 11477 06:12:25,855 --> 06:12:26,522 time check. 11478 06:12:26,522 --> 06:12:27,223 This is the point in 11479 06:12:27,223 --> 06:12:30,159 the afternoon session where we 11480 06:12:30,159 --> 06:12:30,793 do not agenda public comment 11481 06:12:30,793 --> 06:12:31,527 Everybody willing to stick 11482 06:12:31,527 --> 06:12:34,527 around for both in-person and 11483 06:12:38,968 --> 06:12:39,769 remote because I hope we got 11484 06:12:39,769 --> 06:12:40,537 six So we're in good shape. 11485 06:12:40,537 --> 06:12:41,404 Thank you because I know I 11486 06:12:41,404 --> 06:12:43,573 don't want to roll over till 11487 06:12:43,573 --> 06:12:44,641 tomorrow. 11488 06:12:44,641 --> 06:12:47,944 It can be done so we will now 11489 06:12:47,944 --> 06:12:48,545 take up non agenda public 11490 06:12:48,545 --> 06:12:49,780 comment We'll take both 11491 06:12:49,780 --> 06:12:49,680 in-person and those 11492 06:12:49,680 --> 06:12:51,680 participating remotely. 11493 06:12:53,683 --> 06:12:54,417 Council members respect and 11494 06:12:54,417 --> 06:12:54,984 appreciate the public input and 11495 06:12:54,984 --> 06:12:57,384 are fully committed to 11496 06:12:57,987 --> 06:12:58,688 protecting every participant's 11497 06:12:58,688 --> 06:12:59,289 free speech rights at council 11498 06:12:59,289 --> 06:12:59,956 and committee meetings. 11499 06:12:59,956 --> 06:13:02,356 Deputy Clerk Please proceed 11500 06:13:03,827 --> 06:13:04,527 with public comment Pearl 2.7 11501 06:13:04,527 --> 06:13:05,228 Known Agenda Public comment is 11502 06:13:05,228 --> 06:13:08,228 an opportunity for members of 11503 06:13:08,598 --> 06:13:09,298 the public to comment on items 11504 06:13:09,298 --> 06:13:09,932 that are not on the agenda but 11505 06:13:09,932 --> 06:13:12,332 within the subject matter 11506 06:13:12,735 --> 06:13:13,690 jurisdiction of the City 11507 06:13:13,690 --> 06:13:13,703 Council. 11508 06:13:13,703 --> 06:13:14,370 Each speaker will have two 11509 06:13:14,370 --> 06:13:16,370 minutes. 11510 06:13:16,940 --> 06:13:17,641 Please note if there are eight 11511 06:13:17,641 --> 06:13:18,307 or more speakers on a single 11512 06:13:18,307 --> 06:13:20,977 topic the maximum time for 11513 06:13:20,977 --> 06:13:21,745 the topic will be 16 minutes. 11514 06:13:21,745 --> 06:13:22,478 If you are in chambers please 11515 06:13:22,478 --> 06:13:25,648 submit your speaker slip If you 11516 06:13:25,648 --> 06:13:26,416 are joining us virtually please 11517 06:13:26,416 --> 06:13:27,830 raise your hand to speak by 11518 06:13:27,830 --> 06:13:30,830 tapping the raise your hand 11519 06:13:30,787 --> 06:13:31,487 icon or if you are a call in 11520 06:13:31,487 --> 06:13:33,490 participant start nine We will 11521 06:13:33,490 --> 06:13:35,890 begin with in-person knowledge 11522 06:13:38,861 --> 06:13:39,629 and public comment. 11523 06:13:39,629 --> 06:13:42,629 Jacob Lewis Edwards I don't 11524 06:13:43,667 --> 06:13:47,267 think he's still here so I'll 11525 06:13:48,404 --> 06:13:49,390 go to the next person allegedly 11526 06:13:49,390 --> 06:13:51,439 Order Please come forward. 11527 06:14:02,520 --> 06:14:02,419 You have two minutes to speak. 11528 06:14:02,419 --> 06:14:04,419 Okay. 11529 06:14:06,189 --> 06:14:06,957 We we go. 11530 06:14:06,957 --> 06:14:07,290 Can you start my time over? 11531 06:14:07,290 --> 06:14:07,591 Thanks. 11532 06:14:07,591 --> 06:14:09,591 Yeah. 11533 06:14:10,360 --> 06:14:10,794 You guys are funny with this 11534 06:14:10,794 --> 06:14:11,428 drug stuff. 11535 06:14:11,428 --> 06:14:12,950 You're like we're going to 11536 06:14:12,950 --> 06:14:15,599 fight the war on drugs by 11537 06:14:15,599 --> 06:14:16,333 heavily regulating the drugs 11538 06:14:16,333 --> 06:14:16,833 make an extremely difficult for 11539 06:14:16,833 --> 06:14:18,833 all those people. 11540 06:14:20,737 --> 06:14:21,438 Who were you know wrongly 11541 06:14:21,438 --> 06:14:24,841 charged any who And it's funny 11542 06:14:24,841 --> 06:14:25,542 to be talking about drugs while 11543 06:14:25,542 --> 06:14:26,109 we have people who are 11544 06:14:26,109 --> 06:14:28,109 whistleblowing against 11545 06:14:29,646 --> 06:14:30,380 the government like some are 11546 06:14:30,380 --> 06:14:33,980 Stephan And the things that are 11547 06:14:34,885 --> 06:14:35,485 going on in the jails at Las 11548 06:14:35,485 --> 06:14:37,885 Colinas and their brutal 11549 06:14:40,900 --> 06:14:40,757 assault from that Andrea Ebbing 11550 06:14:40,757 --> 06:14:41,325 with Anthony Warner totally 11551 06:14:41,325 --> 06:14:43,725 slammed her face into 11552 06:14:45,228 --> 06:14:45,629 the ground and he's playing 11553 06:14:45,629 --> 06:14:47,629 the victim. 11554 06:14:48,565 --> 06:14:49,366 He's like six, six three and 11555 06:14:49,366 --> 06:14:52,366 260 pounds said she was really 11556 06:14:53,137 --> 06:14:53,804 posturing any who So they have 11557 06:14:53,804 --> 06:14:56,204 done a competency evaluation 11558 06:14:57,874 --> 06:14:58,542 because you know in order to 11559 06:14:58,542 --> 06:14:59,109 silence somebody you got to 11560 06:14:59,109 --> 06:15:01,109 really question their 11561 06:15:03,147 --> 06:15:04,810 competency. 11562 06:15:04,810 --> 06:15:04,748 So then as long as you ask them 11563 06:15:04,748 --> 06:15:07,148 some political questions and 11564 06:15:08,185 --> 06:15:08,986 the person doing the evaluation 11565 06:15:08,986 --> 06:15:09,653 things that you're I don't know 11566 06:15:09,653 --> 06:15:12,530 maybe a conspiracy theorist 11567 06:15:12,222 --> 06:15:12,923 then they'll say that your 11568 06:15:12,923 --> 06:15:13,223 incompetent So how cool is 11569 06:15:13,223 --> 06:15:15,223 that? 11570 06:15:16,993 --> 06:15:17,661 I mean she's got felony charges 11571 06:15:17,661 --> 06:15:18,362 from you know, supposedly 11572 06:15:18,362 --> 06:15:21,362 barring Anthony Warner who you 11573 06:15:22,660 --> 06:15:22,833 know, can still shoot his 11574 06:15:22,833 --> 06:15:23,700 firearm but has to take time 11575 06:15:23,700 --> 06:15:27,204 off of work because his hand is 11576 06:15:27,204 --> 06:15:28,500 so injured. 11577 06:15:28,500 --> 06:15:28,672 But it's just interesting to 11578 06:15:28,672 --> 06:15:31,672 see the lengths that people 11579 06:15:32,242 --> 06:15:33,110 will go to silence people. 11580 06:15:33,110 --> 06:15:36,460 So I mean imagine she might go 11581 06:15:36,460 --> 06:15:36,414 into a mental hospital for like 11582 06:15:36,414 --> 06:15:36,780 two years. 11583 06:15:36,780 --> 06:15:37,481 Who knows? 11584 06:15:37,481 --> 06:15:40,417 And then eventually, you know, 11585 06:15:40,417 --> 06:15:41,185 if somebody deems her competent 11586 06:15:41,185 --> 06:15:41,518 she might be able to face these 11587 06:15:41,518 --> 06:15:41,818 charges. 11588 06:15:41,818 --> 06:15:43,818 Right. 11589 06:15:45,656 --> 06:15:46,900 And right now she's in on two 11590 06:15:46,900 --> 06:15:46,657 misdemeanors. 11591 06:15:46,657 --> 06:15:49,657 She's out on a felony. 11592 06:15:50,394 --> 06:15:50,761 You know, she had her brain 11593 06:15:50,761 --> 06:15:51,262 aneurysm. 11594 06:15:51,262 --> 06:15:51,862 No worries there. 11595 06:15:51,862 --> 06:15:52,563 She might need some more 11596 06:15:52,563 --> 06:15:55,563 surgery while she's in there. 11597 06:15:55,699 --> 06:15:56,433 She already had to go to 11598 06:15:56,433 --> 06:15:56,934 the hospital because they can't 11599 06:15:56,934 --> 06:15:59,334 take care of her. 11600 06:16:00,400 --> 06:16:00,704 >> But good job isn't that cool 11601 06:16:00,704 --> 06:16:01,372 when you're exposing stuff and 11602 06:16:01,372 --> 06:16:03,772 they say you're incompetent 11603 06:16:05,142 --> 06:16:05,643 should be really exciting. 11604 06:16:05,643 --> 06:16:06,900 >> The job. 11605 06:16:06,900 --> 06:16:08,900 Thank you. 11606 06:16:10,347 --> 06:16:11,480 Blair Beekman followed by Bob 11607 06:16:11,480 --> 06:16:13,448 Kozinski, Anthony Ralphs, Lori 11608 06:16:14,452 --> 06:16:16,852 Saldana, Marco Espinosa and 11609 06:16:25,429 --> 06:16:25,763 Terry Best High by Beekman 11610 06:16:25,763 --> 06:16:26,497 Thanks. 11611 06:16:26,497 --> 06:16:29,100 A report back on Andrea's which 11612 06:16:29,100 --> 06:16:29,767 is that where she's at? 11613 06:16:29,767 --> 06:16:32,767 I think she's passing her 11614 06:16:34,500 --> 06:16:34,638 competency test so Oh I'm not 11615 06:16:34,638 --> 06:16:35,339 hearing the story right If 11616 06:16:35,339 --> 06:16:38,776 she's going down again she was 11617 06:16:38,776 --> 06:16:39,577 up before and now it's down and 11618 06:16:39,577 --> 06:16:40,110 it's just amazing she has to go 11619 06:16:40,110 --> 06:16:42,510 through all of this. 11620 06:16:43,147 --> 06:16:43,948 I mean I really hope that can 11621 06:16:43,948 --> 06:16:48,148 be a real effort to be working 11622 06:16:48,285 --> 06:16:48,986 on this issue And overall 11623 06:16:48,986 --> 06:16:49,754 issues of how our police work, 11624 06:16:49,754 --> 06:16:52,690 how our immune systems are 11625 06:16:52,690 --> 06:16:53,391 working. 11626 06:16:53,391 --> 06:16:56,391 Good luck in those efforts. 11627 06:17:00,298 --> 06:17:01,980 I wanted to ask also how 11628 06:17:01,980 --> 06:17:02,660 the just I made a point You 11629 06:17:02,660 --> 06:17:05,570 know, I was I was late to learn 11630 06:17:05,570 --> 06:17:06,304 that the new Good Day Centers 11631 06:17:06,304 --> 06:17:09,904 is probably going to be closing 11632 06:17:10,207 --> 06:17:10,908 in six months time And I think 11633 06:17:10,908 --> 06:17:11,676 we have to make a concerted 11634 06:17:11,676 --> 06:17:14,676 effort to talk about our 11635 06:17:15,747 --> 06:17:16,480 homeless issues more in 11636 06:17:16,480 --> 06:17:19,751 the coming year, how we do that 11637 06:17:19,751 --> 06:17:20,151 and a more sensitivity in that 11638 06:17:20,151 --> 06:17:21,180 department. 11639 06:17:21,180 --> 06:17:24,422 And so I was really hurt in 11640 06:17:24,422 --> 06:17:24,889 the presentation being 11641 06:17:24,889 --> 06:17:25,690 dismissed today. 11642 06:17:25,690 --> 06:17:29,661 I think we have to make that 11643 06:17:29,661 --> 06:17:30,161 extra effort at this time and I 11644 06:17:30,161 --> 06:17:30,928 hope we can. 11645 06:17:30,928 --> 06:17:34,528 So good luck how we can. 11646 06:17:34,666 --> 06:17:38,269 I also wanted to offer at this 11647 06:17:38,269 --> 06:17:39,237 time I'm giving my tech academy 11648 06:17:39,237 --> 06:17:43,408 a bit of a break tonight and 11649 06:17:43,408 --> 06:17:44,108 just consider you know 11650 06:17:44,108 --> 06:17:44,842 the ideas I brought up before 11651 06:17:44,842 --> 06:17:48,442 about budget issues that we can 11652 06:17:48,546 --> 06:17:52,146 still work on budget issues at 11653 06:17:52,817 --> 06:17:53,685 this time And the idea of as a 11654 06:17:53,685 --> 06:17:57,655 very small cut in pay to our 11655 06:17:57,655 --> 06:17:58,356 city government staff if that's 11656 06:17:58,356 --> 06:18:01,356 3000 people at least if they 11657 06:18:03,528 --> 06:18:04,162 take a cut of say $600 a year 11658 06:18:04,162 --> 06:18:06,562 that's 50 bucks a month. 11659 06:18:08,266 --> 06:18:08,967 I think that's over almost $2 11660 06:18:08,967 --> 06:18:12,567 million in savings that can go 11661 06:18:12,737 --> 06:18:13,438 to the budget and that's not 11662 06:18:13,438 --> 06:18:16,438 including our city council And 11663 06:18:17,676 --> 06:18:18,543 Mayor, what they can take on 11664 06:18:18,543 --> 06:18:19,411 that's a lot of money and I 11665 06:18:19,411 --> 06:18:22,213 hope we want to consider such 11666 06:18:22,213 --> 06:18:23,140 things. 11667 06:18:23,140 --> 06:18:23,415 >> Good luck You can Thank you. 11668 06:18:23,415 --> 06:18:25,415 Thank you. 11669 06:18:29,154 --> 06:18:32,154 Bob Kozinski So video okay. 11670 06:18:48,573 --> 06:18:49,341 Okay Bob because there's a week 11671 06:18:49,341 --> 06:18:50,410 ago today I was hang gliding at 11672 06:18:50,410 --> 06:18:53,410 Dockweiler State Beach in Los 11673 06:18:53,178 --> 06:18:53,980 Angeles under the Dockweiler 11674 06:18:53,980 --> 06:18:54,679 waiver that has been in place 11675 06:18:54,679 --> 06:18:55,346 since 2017 the public has been 11676 06:18:55,346 --> 06:18:58,346 able to hang glider at 11677 06:18:58,917 --> 06:18:59,551 Dockweiler Beach for nearly ten 11678 06:18:59,551 --> 06:18:59,952 years under that waiver a 11679 06:18:59,952 --> 06:19:01,952 decade ago. 11680 06:19:03,522 --> 06:19:04,222 However, hang gliding at 11681 06:19:04,222 --> 06:19:04,856 Dockweiler was not allowed by 11682 06:19:04,856 --> 06:19:07,856 the county of Los Angeles 11683 06:19:08,920 --> 06:19:08,760 without use of a membership. 11684 06:19:08,760 --> 06:19:09,427 Fortunately that all changed 11685 06:19:09,427 --> 06:19:13,270 due to a sequence of events 11686 06:19:13,165 --> 06:19:13,798 that started right here in San 11687 06:19:13,798 --> 06:19:16,198 Diego On JULY 24th, 2011. 11688 06:19:16,934 --> 06:19:17,636 A female student named Shannon 11689 06:19:17,636 --> 06:19:20,636 Hamby was taking lessons at 11690 06:19:22,441 --> 06:19:23,108 Tori through the city where she 11691 06:19:23,108 --> 06:19:25,508 was under radio supervision 11692 06:19:27,479 --> 06:19:28,800 when she was flown directly 11693 06:19:28,800 --> 06:19:28,413 into the path of another 11694 06:19:28,413 --> 06:19:29,470 student. 11695 06:19:29,470 --> 06:19:29,381 She crashed and was badly 11696 06:19:29,381 --> 06:19:31,381 injured. 11697 06:19:32,517 --> 06:19:33,218 I was contacted by Shannon's 11698 06:19:33,218 --> 06:19:36,818 lawyer and asked to testify as 11699 06:19:36,855 --> 06:19:37,622 an expert witness and I did. 11700 06:19:37,622 --> 06:19:38,490 My testimony in SEPTEMBER of 11701 06:19:38,490 --> 06:19:42,900 2014 was solid and the case was 11702 06:19:42,294 --> 06:19:42,894 quickly settled in Shannon's 11703 06:19:42,894 --> 06:19:43,228 favor for an undisclosed 11704 06:19:43,228 --> 06:19:45,228 amount. 11705 06:19:46,398 --> 06:19:47,990 Yeshivah ended up losing their 11706 06:19:47,990 --> 06:19:47,432 insurance coverage by NOVEMBER 11707 06:19:47,432 --> 06:19:49,432 of 2014. 11708 06:19:50,969 --> 06:19:51,570 I was retaliated against by 11709 06:19:51,570 --> 06:19:52,170 your concessionaire who 11710 06:19:52,170 --> 06:19:54,570 conspired with you spend 11711 06:19:55,107 --> 06:19:55,840 the spring of 2015 to have me 11712 06:19:55,840 --> 06:19:58,840 expelled for my testimony which 11713 06:20:00,145 --> 06:20:00,846 ended my ability to fly at all 11714 06:20:00,846 --> 06:20:03,846 use for sites including Torrey 11715 06:20:04,490 --> 06:20:04,750 Pines and Dockweiler In early 11716 06:20:04,750 --> 06:20:07,750 2017 we met with newly elected 11717 06:20:08,687 --> 06:20:09,488 Barbara Bree for help. 11718 06:20:09,488 --> 06:20:10,222 Barbara Bree suggested a flight 11719 06:20:10,222 --> 06:20:13,559 waiver to solve the problem but 11720 06:20:13,559 --> 06:20:14,426 she never followed through. 11721 06:20:14,426 --> 06:20:15,194 Joe Foust and I also spoke to 11722 06:20:15,194 --> 06:20:18,530 the Los Angeles County Board of 11723 06:20:18,530 --> 06:20:19,231 Supervisors while Barbara Bree 11724 06:20:19,231 --> 06:20:22,831 did nothing here in San Diego, 11725 06:20:23,680 --> 06:20:23,736 Los Angeles Supervisor Janice 11726 06:20:23,736 --> 06:20:26,736 Hahn stepped up and actually 11727 06:20:27,539 --> 06:20:28,240 instituted a waiver. 11728 06:20:28,240 --> 06:20:28,974 The first DR. Weiler waivers 11729 06:20:28,974 --> 06:20:32,211 were issued to Joe Foust, Frank 11730 06:20:32,211 --> 06:20:32,978 Culver and myself on JULY 26th, 11731 06:20:32,978 --> 06:20:35,978 2017 and we have flown under 11732 06:20:36,982 --> 06:20:37,683 those waivers without incident 11733 06:20:37,683 --> 06:20:38,384 ever since Barbara Bree dodged 11734 06:20:38,384 --> 06:20:41,953 the issue for the rest of her 11735 06:20:41,953 --> 06:20:42,354 term until her failed mayoral 11736 06:20:42,354 --> 06:20:43,220 bid in 2020. 11737 06:20:43,220 --> 06:20:46,220 Joe LaCava has followed her 11738 06:20:47,159 --> 06:20:47,826 lead throughout his entire term 11739 06:20:47,826 --> 06:20:48,494 reactivate the Torrey Pines 11740 06:20:48,494 --> 06:20:51,494 City Park Advisory Board and 11741 06:20:51,964 --> 06:20:54,599 Institute a Torrey Pines flight 11742 06:20:54,599 --> 06:20:56,999 waiver now Thank you. 11743 06:20:59,705 --> 06:21:01,473 >> Thank you. 11744 06:21:01,473 --> 06:21:04,473 >> Our next speaker is Anthony 11745 06:21:06,678 --> 06:21:08,678 Ralphs. 11746 06:21:11,917 --> 06:21:12,685 Good afternoon City Council. 11747 06:21:12,685 --> 06:21:13,452 I just wanted to speak about 11748 06:21:13,452 --> 06:21:17,520 the concern that I have and 11749 06:21:17,156 --> 06:21:17,757 hearing the expressed financial 11750 06:21:17,757 --> 06:21:18,523 concerns earlier today. 11751 06:21:18,523 --> 06:21:22,123 Miss Campbell who is no longer 11752 06:21:22,227 --> 06:21:22,862 here expressed the $3 million 11753 06:21:22,862 --> 06:21:25,862 concern that she had with 11754 06:21:27,333 --> 06:21:28,100 the study that was done for 11755 06:21:28,100 --> 06:21:30,870 the Phase two project for sdi 11756 06:21:30,870 --> 06:21:31,504 And she thought that the $3 11757 06:21:31,504 --> 06:21:32,138 million was too much, that 11758 06:21:32,138 --> 06:21:34,538 these studies are costing 11759 06:21:34,874 --> 06:21:35,741 the city too much. 11760 06:21:35,741 --> 06:21:39,341 I have a real difficulty in 11761 06:21:39,812 --> 06:21:40,479 understanding how she can on 11762 06:21:40,479 --> 06:21:43,479 one hand have fine problems 11763 06:21:44,183 --> 06:21:45,500 with the costs of the studies 11764 06:21:45,500 --> 06:21:45,851 that cost $3 million to help us 11765 06:21:45,851 --> 06:21:48,851 potentially get off of a 11766 06:21:49,722 --> 06:21:50,423 monopoly that's making $1 11767 06:21:50,423 --> 06:21:53,423 billion of profit every year. 11768 06:21:54,260 --> 06:21:54,861 But she doesn't raise a single 11769 06:21:54,861 --> 06:21:57,861 point with the fact that 11770 06:21:59,298 --> 06:22:02,298 the police budget the public 11771 06:22:02,602 --> 06:22:03,302 liability fund has exceeded 11772 06:22:03,302 --> 06:22:04,170 over $116 million in the last 11773 06:22:04,170 --> 06:22:07,770 ten years or that this year 11774 06:22:08,400 --> 06:22:08,741 alone it's already exceeded $42 11775 06:22:08,741 --> 06:22:11,741 million and we're not even 11776 06:22:12,245 --> 06:22:12,712 finished with all 11777 06:22:12,712 --> 06:22:13,613 the settlements. 11778 06:22:13,613 --> 06:22:17,160 I have not heard the side of 11779 06:22:17,160 --> 06:22:17,750 the city that does not address 11780 06:22:17,750 --> 06:22:21,350 these issues as as Henry Foster 11781 06:22:21,854 --> 06:22:22,588 has expressed before and 11782 06:22:22,588 --> 06:22:23,323 multiple times in this chambers 11783 06:22:23,323 --> 06:22:23,890 he said this is the tale of two 11784 06:22:23,890 --> 06:22:26,290 cities And he's right. 11785 06:22:27,930 --> 06:22:27,794 We do have one half of this 11786 06:22:27,794 --> 06:22:28,394 city council that understands 11787 06:22:28,394 --> 06:22:30,794 and respects our privacy 11788 06:22:31,964 --> 06:22:32,765 concerns, that understands and 11789 06:22:32,765 --> 06:22:35,765 respects that we are not 11790 06:22:37,103 --> 06:22:37,804 property of the state to be 11791 06:22:37,804 --> 06:22:40,804 tracked in our whereabouts of 11792 06:22:41,942 --> 06:22:42,575 where we go that understands in 11793 06:22:42,575 --> 06:22:44,975 the Supreme Court's recent 11794 06:22:46,512 --> 06:22:47,180 ruling that we have freedom in 11795 06:22:47,180 --> 06:22:50,180 the whole totality of our 11796 06:22:51,818 --> 06:22:52,452 movement Although the roads are 11797 06:22:52,452 --> 06:22:53,186 owned yes by the city and 11798 06:22:53,186 --> 06:22:56,186 therefore yes y'all do have 11799 06:22:57,423 --> 06:22:57,724 jurisdiction over the city's 11800 06:22:57,724 --> 06:22:58,524 roads. 11801 06:22:58,524 --> 06:23:01,524 We own our own personal 11802 06:23:02,662 --> 06:23:03,462 sovereignty over our own bodies 11803 06:23:03,462 --> 06:23:07,620 And there are cities that are 11804 06:23:08,100 --> 06:23:08,868 being sued including I believe 11805 06:23:08,868 --> 06:23:12,468 it is Santa Monica No Santa 11806 06:23:13,473 --> 06:23:14,340 Clara. 11807 06:23:14,340 --> 06:23:14,741 >> Thank you for your time. 11808 06:23:14,741 --> 06:23:15,141 Thank you. 11809 06:23:15,141 --> 06:23:17,141 We're next. 11810 06:23:22,515 --> 06:23:23,283 Lori Saldana. 11811 06:23:23,283 --> 06:23:26,283 >> Good evening and thank you 11812 06:23:27,821 --> 06:23:28,588 to those of you who are 11813 06:23:28,588 --> 06:23:29,222 actually still here and some of 11814 06:23:29,222 --> 06:23:29,589 you are maybe even paying 11815 06:23:29,589 --> 06:23:31,589 attention. 11816 06:23:33,193 --> 06:23:33,860 I just got off of a Zoom 11817 06:23:33,860 --> 06:23:36,260 meeting with the Democratic 11818 06:23:36,863 --> 06:23:37,564 Club and one of the council 11819 06:23:37,564 --> 06:23:38,970 members who's not here tonight 11820 06:23:38,970 --> 06:23:40,497 was in that meeting. 11821 06:23:41,100 --> 06:23:41,801 So I'm not sure where 11822 06:23:41,801 --> 06:23:42,469 the priorities are but it's a 11823 06:23:42,469 --> 06:23:43,170 little concerning to me when 11824 06:23:43,170 --> 06:23:46,170 you have discussions on issues 11825 06:23:47,207 --> 06:23:47,941 that are important to this body 11826 06:23:47,941 --> 06:23:51,541 and people leave early and then 11827 06:23:51,578 --> 06:23:51,944 end up at another engagement 11828 06:23:51,944 --> 06:23:52,646 elsewhere. 11829 06:23:52,646 --> 06:23:53,313 You're you're concerned about 11830 06:23:53,313 --> 06:23:56,313 the impacts on public health 11831 06:23:57,250 --> 06:23:57,951 and safety and giving 11832 06:23:57,951 --> 06:23:58,618 the private right of action to 11833 06:23:58,618 --> 06:24:01,180 others in certain industry. 11834 06:24:01,855 --> 06:24:02,522 And I just want to suggest that 11835 06:24:02,522 --> 06:24:03,223 there's another industry in 11836 06:24:03,223 --> 06:24:06,223 town that has serious impacts 11837 06:24:07,594 --> 06:24:08,428 on public health and safety. 11838 06:24:08,428 --> 06:24:09,620 Is it just me or is there 11839 06:24:09,620 --> 06:24:11,462 feedback on this tonight? 11840 06:24:12,599 --> 06:24:13,500 There's feedback. 11841 06:24:13,500 --> 06:24:14,134 >> And if you were to give a 11842 06:24:14,134 --> 06:24:17,134 private right of action to 11843 06:24:17,504 --> 06:24:18,205 people I think you would go a 11844 06:24:18,205 --> 06:24:18,939 long way to closing of several 11845 06:24:18,939 --> 06:24:22,539 problems in our city budget and 11846 06:24:22,943 --> 06:24:23,810 also our housing. 11847 06:24:23,810 --> 06:24:24,477 And of course I'm talking about 11848 06:24:24,477 --> 06:24:26,877 short term vacation rentals. 11849 06:24:27,780 --> 06:24:28,548 They also lack enforcement. 11850 06:24:28,548 --> 06:24:29,150 They also have people operating 11851 06:24:29,150 --> 06:24:29,716 without permits. 11852 06:24:29,716 --> 06:24:32,716 They also have people putting 11853 06:24:34,870 --> 06:24:34,722 lives and safety at risk. 11854 06:24:34,722 --> 06:24:35,220 Around the corner from my 11855 06:24:35,220 --> 06:24:35,689 house. 11856 06:24:35,689 --> 06:24:38,689 There's a short term rental 11857 06:24:39,226 --> 06:24:39,893 that has caught on fire that 11858 06:24:39,893 --> 06:24:40,293 has flooded raw sewage into 11859 06:24:40,293 --> 06:24:41,194 the streets. 11860 06:24:41,194 --> 06:24:44,698 And it took me over a year to 11861 06:24:44,698 --> 06:24:45,532 get someone to respond. 11862 06:24:45,532 --> 06:24:46,233 If I had a private right of 11863 06:24:46,233 --> 06:24:49,833 action I could have gone at 11864 06:24:50,737 --> 06:24:51,710 them as a property owner 11865 06:24:51,710 --> 06:24:51,772 nearby. 11866 06:24:51,772 --> 06:24:52,306 Also they don't pay commercial 11867 06:24:52,306 --> 06:24:54,306 trash hauling fees. 11868 06:24:56,179 --> 06:24:56,910 They pay residential fees and 11869 06:24:56,910 --> 06:24:57,411 they're businesses operating in 11870 06:24:57,411 --> 06:24:58,110 our neighborhoods. 11871 06:24:58,110 --> 06:25:01,110 If you are serious about 11872 06:25:01,515 --> 06:25:02,215 private right of action, give 11873 06:25:02,215 --> 06:25:02,916 residents who are next door to 11874 06:25:02,916 --> 06:25:05,916 short term rentals that are 11875 06:25:07,540 --> 06:25:07,721 violating the permitting, 11876 06:25:07,721 --> 06:25:08,422 violating health and safety. 11877 06:25:08,422 --> 06:25:12,220 And let us go after them 11878 06:25:13,600 --> 06:25:13,560 because I promise you they are 11879 06:25:13,560 --> 06:25:14,227 not disadvantaged. 11880 06:25:14,227 --> 06:25:14,928 They have people that owned 11881 06:25:14,928 --> 06:25:17,328 multiple properties that form 11882 06:25:18,532 --> 06:25:19,233 consortiums that buy our 11883 06:25:19,233 --> 06:25:19,900 properties in Ocean Beach and 11884 06:25:19,900 --> 06:25:22,900 elsewhere and push out full 11885 06:25:24,872 --> 06:25:25,339 time residential rent renters 11886 06:25:25,339 --> 06:25:26,390 and homeowners. 11887 06:25:26,390 --> 06:25:26,707 If you want a right of action 11888 06:25:26,707 --> 06:25:27,740 apply it to short term rent. 11889 06:25:27,740 --> 06:25:28,942 Thank you. 11890 06:25:28,942 --> 06:25:31,942 That does conclude your time. 11891 06:25:34,848 --> 06:25:35,449 >> Marco Espinosa. 11892 06:25:35,449 --> 06:25:37,449 >> Good evening. 11893 06:25:40,988 --> 06:25:41,488 My question goes a Boston 11894 06:25:41,488 --> 06:25:43,488 Avenue park ideas. 11895 06:25:46,760 --> 06:25:47,427 Um the it's not helpful if I 11896 06:25:47,427 --> 06:25:51,270 don't have a map for you. 11897 06:25:52,433 --> 06:25:53,233 Sorry. 11898 06:25:53,233 --> 06:25:56,833 Um, I know we already iterated 11899 06:25:58,500 --> 06:25:58,739 the coming onto the freeway 11900 06:25:58,739 --> 06:25:59,406 The bollards that first section 11901 06:25:59,406 --> 06:26:02,406 of park between the freeway 11902 06:26:04,780 --> 06:26:04,578 onramp and the bridge that goes 11903 06:26:04,578 --> 06:26:05,179 over the freeway. 11904 06:26:05,179 --> 06:26:08,179 I think that could be 11905 06:26:09,490 --> 06:26:09,617 the section in the diagram 11906 06:26:09,617 --> 06:26:10,284 shows how it's owned. 11907 06:26:10,284 --> 06:26:10,684 It doesn't include actually 11908 06:26:10,684 --> 06:26:12,684 the walkway. 11909 06:26:15,956 --> 06:26:16,857 Um, and the bridge. 11910 06:26:16,857 --> 06:26:17,725 Um, so when I got to the park I 11911 06:26:17,725 --> 06:26:21,325 was like oh that's something to 11912 06:26:21,529 --> 06:26:22,229 consider on Google Maps. 11913 06:26:22,229 --> 06:26:22,530 The park actually looks really 11914 06:26:22,530 --> 06:26:23,264 small. 11915 06:26:23,264 --> 06:26:26,864 Doesn't seem like there's a lot 11916 06:26:27,401 --> 06:26:28,268 space but once you get there 11917 06:26:28,268 --> 06:26:29,136 quite a lot of space for a park 11918 06:26:29,136 --> 06:26:32,540 If it does end up being the um 11919 06:26:32,540 --> 06:26:35,540 tennis courts or soccer fields 11920 06:26:39,247 --> 06:26:39,914 um in the portion that's like a 11921 06:26:39,914 --> 06:26:40,282 longer portion Nothing could 11922 06:26:40,282 --> 06:26:40,981 fit there. 11923 06:26:40,981 --> 06:26:41,616 That doesn't need to be like a 11924 06:26:41,616 --> 06:26:44,616 net or something that goes 11925 06:26:45,286 --> 06:26:45,886 along that nice new barrier 11926 06:26:45,886 --> 06:26:46,454 wall for the freeway so 11927 06:26:46,454 --> 06:26:48,854 eyeballs don't go into 11928 06:26:50,157 --> 06:26:53,757 the freeway as cars are going. 11929 06:26:55,830 --> 06:26:56,497 And then the second portion of 11930 06:26:56,497 --> 06:26:57,197 land use available for park 11931 06:26:57,197 --> 06:27:00,797 Right now it's a cycle center. 11932 06:27:03,471 --> 06:27:04,205 I remember I heard that 11933 06:27:04,205 --> 06:27:04,906 possibly So we chose one second 11934 06:27:04,906 --> 06:27:08,750 over which then we left like a 11935 06:27:08,750 --> 06:27:08,776 little strip on the side along 11936 06:27:08,776 --> 06:27:09,510 Charles Creek and at the creek 11937 06:27:09,510 --> 06:27:13,414 was a lot cleaner, a lot nicer. 11938 06:27:13,414 --> 06:27:14,182 I mean you can make that into 11939 06:27:14,182 --> 06:27:14,849 some kind of little beach kind 11940 06:27:14,849 --> 06:27:15,316 of thing but it's a really 11941 06:27:15,316 --> 06:27:17,316 dirty water so. 11942 06:27:20,540 --> 06:27:20,755 And if the recycle center does 11943 06:27:20,755 --> 06:27:24,955 move out and the so be chosen 11944 06:27:27,128 --> 06:27:27,928 to move in, that's a huge whole 11945 06:27:27,928 --> 06:27:28,563 plot of land for a park that 11946 06:27:28,563 --> 06:27:29,297 had a nice and everything. 11947 06:27:29,297 --> 06:27:33,670 That would be a lot of fun. 11948 06:27:33,670 --> 06:27:36,667 And couple of more that you 11949 06:27:37,505 --> 06:27:38,306 measured did not pass but I saw 11950 06:27:38,306 --> 06:27:38,840 advertised as 5000 to 5000 but 11951 06:27:38,840 --> 06:27:39,207 on the values 8000. 11952 06:27:39,207 --> 06:27:40,608 Thank you. 11953 06:27:40,608 --> 06:27:43,608 That does conclude your time. 11954 06:27:47,281 --> 06:27:47,618 Terry Best Terry Best District 11955 06:27:47,618 --> 06:27:49,618 three. 11956 06:27:52,553 --> 06:27:53,220 Please stop allowing special 11957 06:27:53,220 --> 06:27:53,788 interest to write laws that 11958 06:27:53,788 --> 06:27:54,188 create and strengthen 11959 06:27:54,188 --> 06:27:56,188 monopolies. 11960 06:27:59,127 --> 06:27:59,827 Stop doing the bidding of rich 11961 06:27:59,827 --> 06:28:00,361 white men to fund your future 11962 06:28:00,361 --> 06:28:02,361 political endeavors. 11963 06:28:05,320 --> 06:28:05,700 Stop allowing special interests 11964 06:28:05,700 --> 06:28:08,700 using labor to attack those 11965 06:28:11,539 --> 06:28:12,207 less fortunate. 11966 06:28:12,207 --> 06:28:15,207 This nonsense theme here is 11967 06:28:16,177 --> 06:28:16,845 precursory support for your 11968 06:28:16,845 --> 06:28:17,245 2028 mayor campaign and it 11969 06:28:17,245 --> 06:28:17,946 looks ugly. 11970 06:28:17,946 --> 06:28:21,546 Is that the look you want 11971 06:28:23,117 --> 06:28:23,451 further marginalize vulnerable 11972 06:28:23,451 --> 06:28:24,152 people? 11973 06:28:24,152 --> 06:28:27,752 Again, shame on you MR. Trump. 11974 06:28:28,523 --> 06:28:29,230 You. 11975 06:28:29,230 --> 06:28:29,691 >> Thank you. 11976 06:28:29,691 --> 06:28:32,910 That does conclude in-person 11977 06:28:35,430 --> 06:28:36,164 public comment. 11978 06:28:36,164 --> 06:28:36,797 I have started the five minute 11979 06:28:36,797 --> 06:28:37,532 timer in council chambers. 11980 06:28:37,532 --> 06:28:41,102 We will now turn to the virtual 11981 06:28:41,102 --> 06:28:41,736 queue in which there are seven 11982 06:28:41,736 --> 06:28:42,360 participants requesting to 11983 06:28:42,360 --> 06:28:42,771 speak. 11984 06:28:42,771 --> 06:28:45,771 We'll begin with Tyrion Skelly. 11985 06:28:50,578 --> 06:28:51,346 Please begin. 11986 06:28:51,346 --> 06:28:51,780 Good evening San Diego City 11987 06:28:51,780 --> 06:28:53,780 Council Chair. 11988 06:28:55,316 --> 06:28:56,170 My name is Scully and I work 11989 06:28:56,170 --> 06:28:56,618 with my planning group on good 11990 06:28:56,618 --> 06:28:57,185 public health and safety 11991 06:28:57,185 --> 06:28:57,552 policies and land use 11992 06:28:57,552 --> 06:28:59,552 decisions. 11993 06:29:02,156 --> 06:29:02,723 Where I live has windy 11994 06:29:02,723 --> 06:29:03,357 sometimes rocky roads, 11995 06:29:03,357 --> 06:29:05,757 overgrown foliage and some 11996 06:29:07,329 --> 06:29:08,290 roads reported that at times 11997 06:29:08,290 --> 06:29:08,697 and dangerous when it rains or 11998 06:29:08,697 --> 06:29:12,297 is windy as it's been in 11999 06:29:12,667 --> 06:29:13,468 the last couple of days. 12000 06:29:13,468 --> 06:29:14,102 JUNE is Brain Awareness Month 12001 06:29:14,102 --> 06:29:17,702 and I'd like to talk about 12002 06:29:19,207 --> 06:29:19,841 the dangers of marijuana and 12003 06:29:19,841 --> 06:29:20,508 alcohol impaired drivers. 12004 06:29:20,508 --> 06:29:21,176 This is a situation we know 12005 06:29:21,176 --> 06:29:24,176 well in our family oriented 12006 06:29:25,314 --> 06:29:25,680 neighborhoods with our perilous 12007 06:29:25,680 --> 06:29:26,281 roadways. 12008 06:29:26,281 --> 06:29:27,150 Recently the Journal of 12009 06:29:27,150 --> 06:29:29,415 Adolescent Health article wrote 12010 06:29:30,919 --> 06:29:31,653 that marijuana policies 12011 06:29:31,653 --> 06:29:34,530 decisions must acknowledge that 12012 06:29:36,324 --> 06:29:36,992 access access to an 12013 06:29:36,992 --> 06:29:37,659 intoxicating substance that 12014 06:29:37,659 --> 06:29:40,659 appeals to young people will 12015 06:29:42,697 --> 06:29:43,365 end up causing harm No more. 12016 06:29:43,365 --> 06:29:43,999 So then when we drive 12017 06:29:43,999 --> 06:29:44,700 the tribute again describe 12018 06:29:44,700 --> 06:29:47,700 the conditions of our roadways 12019 06:29:49,370 --> 06:29:49,771 and the delays to fix them. 12020 06:29:49,771 --> 06:29:50,471 I would like to respectfully 12021 06:29:50,471 --> 06:29:52,871 suggest that damaged roadways 12022 06:29:54,443 --> 06:29:55,110 combined with drug impaired 12023 06:29:55,110 --> 06:29:55,577 driving is one more lawsuit 12024 06:29:55,577 --> 06:29:57,577 about to happen? 12025 06:30:01,550 --> 06:30:02,250 At least there is one thing you 12026 06:30:02,250 --> 06:30:02,784 could do to mitigate that has 12027 06:30:02,784 --> 06:30:03,518 been contributing to 12028 06:30:03,518 --> 06:30:06,518 the dangerous the dangerous use 12029 06:30:06,922 --> 06:30:07,522 of can and cannabis removing 12030 06:30:07,522 --> 06:30:09,522 enticing and distracting 12031 06:30:12,661 --> 06:30:13,280 marijuana billboards from our 12032 06:30:13,280 --> 06:30:13,728 roadways. 12033 06:30:13,728 --> 06:30:14,429 Summer 26 would be the perfect 12034 06:30:14,429 --> 06:30:17,429 time for policies to happen 12035 06:30:19,334 --> 06:30:19,968 that would ban marijuana from 12036 06:30:19,968 --> 06:30:20,569 our neighborhood roadways. 12037 06:30:20,569 --> 06:30:23,569 Thank you for hearing my 12038 06:30:24,273 --> 06:30:24,673 concerns this evening. 12039 06:30:24,673 --> 06:30:25,274 Thank you. 12040 06:30:25,274 --> 06:30:27,674 Next up Peggy Walker. 12041 06:30:30,612 --> 06:30:30,979 Please begin. 12042 06:30:30,979 --> 06:30:31,847 Thank you. 12043 06:30:31,847 --> 06:30:34,847 Council members Food and gas 12044 06:30:36,952 --> 06:30:37,553 prices MAY be high today but 12045 06:30:37,553 --> 06:30:38,253 drugs like high potency 12046 06:30:38,253 --> 06:30:41,253 marijuana have never been more 12047 06:30:42,557 --> 06:30:43,225 affordable or available And 12048 06:30:43,225 --> 06:30:43,826 that's reflected in today's 12049 06:30:43,826 --> 06:30:45,826 marijuana delivery item 12050 06:30:49,131 --> 06:30:49,698 addressed earlier. 12051 06:30:49,698 --> 06:30:50,299 In a society seeking 12052 06:30:50,299 --> 06:30:50,933 the convenience of home 12053 06:30:50,933 --> 06:30:53,333 delivery for just about 12054 06:30:55,537 --> 06:30:56,271 everything that item shows 12055 06:30:56,271 --> 06:30:56,705 psychotropic drug consumers are 12056 06:30:56,705 --> 06:30:58,705 no exception. 12057 06:31:01,810 --> 06:31:02,511 And the upshot of that is that 12058 06:31:02,511 --> 06:31:03,378 a society where people can get 12059 06:31:03,378 --> 06:31:06,978 high so easily it's also less 12060 06:31:07,749 --> 06:31:08,584 healthy and that's reasonable. 12061 06:31:08,584 --> 06:31:12,784 That truth was put forth in a 12062 06:31:12,821 --> 06:31:13,522 recent New York Times article 12063 06:31:13,522 --> 06:31:14,390 headlined It Shouldn't Be This 12064 06:31:14,390 --> 06:31:19,190 Easy to Get High And so many of 12065 06:31:19,595 --> 06:31:20,329 us parents agree. 12066 06:31:20,329 --> 06:31:20,995 Citing the fact that 48 million 12067 06:31:20,995 --> 06:31:23,995 Americans are addicted to an 12068 06:31:25,100 --> 06:31:25,835 intoxicant like marijuana, 12069 06:31:25,835 --> 06:31:26,535 the Times suggests we should be 12070 06:31:26,535 --> 06:31:30,135 making it easier for people to 12071 06:31:31,707 --> 06:31:32,575 get help rather than get high. 12072 06:31:32,575 --> 06:31:36,175 A straightforward way to curb a 12073 06:31:37,780 --> 06:31:38,481 particularly uptick in use and 12074 06:31:38,481 --> 06:31:39,480 its outcomes of poor physical 12075 06:31:39,480 --> 06:31:39,415 and mental health and 12076 06:31:39,415 --> 06:31:41,415 addiction. 12077 06:31:43,986 --> 06:31:44,720 The proposals it's higher 12078 06:31:44,720 --> 06:31:45,387 taxation on marijuana reasoning 12079 06:31:45,387 --> 06:31:48,387 that people sicker less when 12080 06:31:48,857 --> 06:31:49,692 something's more costly. 12081 06:31:49,692 --> 06:31:50,326 With that in mind I ask your 12082 06:31:50,326 --> 06:31:52,326 consideration of increased 12083 06:31:56,650 --> 06:31:56,432 taxes for all marijuana 12084 06:31:56,432 --> 06:31:57,133 products. 12085 06:31:57,133 --> 06:31:59,533 However results are delivered 12086 06:32:01,671 --> 06:32:02,471 and more transparent reporting 12087 06:32:02,471 --> 06:32:03,138 of how much in taxes for 12088 06:32:03,138 --> 06:32:05,538 marijuana is being collected 12089 06:32:08,511 --> 06:32:09,111 and transfer nc and how they're 12090 06:32:09,111 --> 06:32:09,778 being used by the city. 12091 06:32:09,778 --> 06:32:12,178 Thank you for that 12092 06:32:14,500 --> 06:32:14,417 consideration. 12093 06:32:14,417 --> 06:32:15,151 Thank you. 12094 06:32:15,151 --> 06:32:18,151 Next up is Judith Strain. 12095 06:32:19,722 --> 06:32:20,489 Please begin. 12096 06:32:20,489 --> 06:32:20,823 >> Good evening San Diego City 12097 06:32:20,823 --> 06:32:21,557 Council. 12098 06:32:21,557 --> 06:32:24,557 I appreciate that you've stated 12099 06:32:25,628 --> 06:32:26,329 that doesn't go unnoticed by 12100 06:32:26,329 --> 06:32:26,863 the public when you make those 12101 06:32:26,863 --> 06:32:27,497 sorts of sacrifices. 12102 06:32:27,497 --> 06:32:31,970 I want to speak to a 12103 06:32:31,934 --> 06:32:32,635 terminology that we're seeing 12104 06:32:32,635 --> 06:32:33,336 in public health more and more 12105 06:32:33,336 --> 06:32:33,669 and that is called gas station 12106 06:32:33,669 --> 06:32:35,669 heroin. 12107 06:32:38,400 --> 06:32:38,708 It's kind of used as a catchall 12108 06:32:38,708 --> 06:32:41,108 terminology for gas station 12109 06:32:44,113 --> 06:32:44,814 intoxicants but we now see 12110 06:32:44,814 --> 06:32:45,348 those products still available 12111 06:32:45,348 --> 06:32:46,150 to our young people. 12112 06:32:46,150 --> 06:32:49,150 They include in their often 12113 06:32:50,860 --> 06:32:50,853 sort of spotlight kratom. 12114 06:32:50,853 --> 06:32:53,253 They're also including what's 12115 06:32:56,225 --> 06:32:56,926 called magic mushrooms not I'm 12116 06:32:56,926 --> 06:32:59,926 sorry nitrous oxide and other 12117 06:33:01,830 --> 06:33:02,532 products that contain high thc 12118 06:33:02,532 --> 06:33:03,299 in hiding under cbd products. 12119 06:33:03,299 --> 06:33:06,299 I just mention it because 12120 06:33:08,605 --> 06:33:09,305 the terminology is getting used 12121 06:33:09,305 --> 06:33:12,905 more and more about where our 12122 06:33:14,277 --> 06:33:15,110 children buy these items at gas 12123 06:33:15,110 --> 06:33:15,711 stations which right at the top 12124 06:33:15,711 --> 06:33:16,446 of the list and the number of 12125 06:33:16,446 --> 06:33:16,746 gas stations in the city of San 12126 06:33:16,746 --> 06:33:18,746 Diego. 12127 06:33:20,616 --> 06:33:21,217 One can only guess And if we 12128 06:33:21,217 --> 06:33:21,918 were to enforce the laws 12129 06:33:21,918 --> 06:33:24,918 against these products here in 12130 06:33:25,855 --> 06:33:26,522 our city, just think of 12131 06:33:26,522 --> 06:33:26,989 the amount of money that we 12132 06:33:26,989 --> 06:33:27,723 could bring in. 12133 06:33:27,723 --> 06:33:31,294 So as you hear the terminology 12134 06:33:31,294 --> 06:33:31,995 gas station heroin and realize 12135 06:33:31,995 --> 06:33:32,661 that they're talking about all 12136 06:33:32,661 --> 06:33:35,661 the intoxicants that are now 12137 06:33:37,433 --> 06:33:38,200 portable at gas stations, I 12138 06:33:38,200 --> 06:33:38,968 think what we could do to at 12139 06:33:38,968 --> 06:33:41,968 least stop it by enforcement 12140 06:33:43,973 --> 06:33:44,574 and gather up from them they 12141 06:33:44,574 --> 06:33:45,542 find that come with it. 12142 06:33:45,542 --> 06:33:46,409 Boy, it could be a double win 12143 06:33:46,409 --> 06:33:48,409 for everybody. 12144 06:33:53,450 --> 06:33:54,150 >> Thank you. 12145 06:33:54,150 --> 06:33:54,884 >> Please note that the five 12146 06:33:54,884 --> 06:33:55,452 minute timer has concluded with 12147 06:33:55,452 --> 06:33:55,819 four speakers left in 12148 06:33:55,819 --> 06:33:57,819 the queue. 12149 06:33:59,556 --> 06:33:59,989 No other speakers will be taken 12150 06:33:59,989 --> 06:34:00,456 at this time. 12151 06:34:00,456 --> 06:34:02,456 Next up Phyllis. 12152 06:34:10,300 --> 06:34:12,300 Please begin. 12153 06:34:18,108 --> 06:34:21,108 Phyllis, please On the air. 12154 06:34:30,200 --> 06:34:30,520 I can assure you Phyllis I can 12155 06:34:30,520 --> 06:34:32,920 on mute for you. 12156 06:34:33,156 --> 06:34:36,156 We're going to move on. 12157 06:34:38,695 --> 06:34:39,362 Okay. 12158 06:34:39,362 --> 06:34:41,762 Next up, Becky Wrap. 12159 06:34:51,875 --> 06:34:52,375 Please begin. 12160 06:34:52,375 --> 06:34:53,210 Good evening. 12161 06:34:53,210 --> 06:34:56,810 I need a second rapid increase 12162 06:34:56,980 --> 06:34:57,447 in my concerns about 12163 06:34:57,447 --> 06:34:57,914 transparency and 12164 06:34:57,914 --> 06:34:58,582 accountability. 12165 06:34:58,582 --> 06:35:01,582 In San Diego, the marijuana 12166 06:35:03,120 --> 06:35:03,720 marijuana permitting program 12167 06:35:03,720 --> 06:35:04,387 almost seven years ago, 12168 06:35:04,387 --> 06:35:06,787 the rich Bernardo community 12169 06:35:08,258 --> 06:35:08,825 engaged extensively in 12170 06:35:08,825 --> 06:35:09,393 the public process for 12171 06:35:09,393 --> 06:35:09,793 the original marijuana 12172 06:35:09,793 --> 06:35:11,793 application. 12173 06:35:14,964 --> 06:35:15,666 Residents attended hearings, 12174 06:35:15,666 --> 06:35:16,366 submitted written comments and 12175 06:35:16,366 --> 06:35:17,000 with strong concern about this 12176 06:35:17,000 --> 06:35:20,437 being a pot shop in their 12177 06:35:20,437 --> 06:35:21,104 neighborhood. 12178 06:35:21,104 --> 06:35:21,738 But what has happened since 12179 06:35:21,738 --> 06:35:22,339 that approval is basically 12180 06:35:22,339 --> 06:35:24,739 invisible to the public. 12181 06:35:27,644 --> 06:35:28,344 That original permit has now 12182 06:35:28,344 --> 06:35:29,790 changed hands multiple times. 12183 06:35:29,790 --> 06:35:29,713 The operator that the community 12184 06:35:29,713 --> 06:35:32,113 initially evaluated is no 12185 06:35:33,784 --> 06:35:34,484 longer the operator today. 12186 06:35:34,484 --> 06:35:35,118 Ownership has shifted through 12187 06:35:35,118 --> 06:35:35,652 acquisitions and corporate 12188 06:35:35,652 --> 06:35:37,652 transactions and now 12189 06:35:39,823 --> 06:35:40,457 the business is associated with 12190 06:35:40,457 --> 06:35:41,157 a brand called Lake House. 12191 06:35:41,157 --> 06:35:43,557 Residents were never notified 12192 06:35:45,429 --> 06:35:46,163 of these changes. 12193 06:35:46,163 --> 06:35:46,864 There were no public hearings, 12194 06:35:46,864 --> 06:35:47,530 no neighborhood notices and no 12195 06:35:47,530 --> 06:35:48,265 requirement for the city to 12196 06:35:48,265 --> 06:35:50,665 explain who ultimately controls 12197 06:35:50,834 --> 06:35:51,568 these permits. 12198 06:35:51,568 --> 06:35:52,302 The community was fully engaged 12199 06:35:52,302 --> 06:35:55,902 in the original decision but it 12200 06:35:57,107 --> 06:35:57,407 has been in the dark for years 12201 06:35:57,407 --> 06:35:58,420 since. 12202 06:35:58,420 --> 06:35:58,408 That raises a transparency 12203 06:35:58,408 --> 06:36:00,408 question. 12204 06:36:02,479 --> 06:36:03,147 If public input is required to 12205 06:36:03,147 --> 06:36:03,881 approve a pot shop, why is 12206 06:36:03,881 --> 06:36:06,881 there no transparency when that 12207 06:36:08,485 --> 06:36:09,119 same permit is sold or 12208 06:36:09,119 --> 06:36:09,753 transferred to an entirely 12209 06:36:09,753 --> 06:36:10,540 different company multiple 12210 06:36:10,540 --> 06:36:12,540 times? 12211 06:36:14,491 --> 06:36:15,920 The operator behind the permit 12212 06:36:15,920 --> 06:36:15,759 is not a minor detail. 12213 06:36:15,759 --> 06:36:18,159 It speaks to accountability, 12214 06:36:20,397 --> 06:36:20,998 business practices and 12215 06:36:20,998 --> 06:36:21,699 the enforcement history. 12216 06:36:21,699 --> 06:36:22,399 It also raises concerns about 12217 06:36:22,399 --> 06:36:24,799 branding and public perception 12218 06:36:25,769 --> 06:36:26,503 and the like. 12219 06:36:26,503 --> 06:36:27,104 The House does not communicate 12220 06:36:27,104 --> 06:36:30,104 to the public that this 12221 06:36:31,675 --> 06:36:32,243 business will be selling highly 12222 06:36:32,243 --> 06:36:32,943 intoxicating products. 12223 06:36:32,943 --> 06:36:36,543 Rather the message it sends is 12224 06:36:37,214 --> 06:36:37,681 that our being now has a new 12225 06:36:37,681 --> 06:36:38,282 bakery in town. 12226 06:36:38,282 --> 06:36:39,160 This is unacceptable and 12227 06:36:39,160 --> 06:36:42,160 communities deserve to know who 12228 06:36:43,421 --> 06:36:44,540 is operating in their 12229 06:36:44,540 --> 06:36:44,688 neighborhoods not just at 12230 06:36:44,688 --> 06:36:45,422 the moment of approval but 12231 06:36:45,422 --> 06:36:45,756 throughout the entire life of a 12232 06:36:45,756 --> 06:36:47,756 permit. 12233 06:36:49,930 --> 06:36:49,460 Thank you. 12234 06:36:49,460 --> 06:36:51,460 Thank you. 12235 06:36:51,629 --> 06:36:53,629 Next, John Elway. 12236 06:36:57,902 --> 06:36:58,302 Please begin. 12237 06:36:58,302 --> 06:36:58,936 Hi John. 12238 06:36:58,936 --> 06:37:01,336 You have lived experience 12239 06:37:04,241 --> 06:37:04,942 advisors so my team and I went 12240 06:37:04,942 --> 06:37:05,576 through all the press articles 12241 06:37:05,576 --> 06:37:08,576 and were in attendance or 12242 06:37:10,614 --> 06:37:11,248 listening to the majority of 12243 06:37:11,248 --> 06:37:14,248 the budget meetings and we 12244 06:37:16,220 --> 06:37:16,887 started to find out that 12245 06:37:16,887 --> 06:37:20,487 the city is not only funding 12246 06:37:22,927 --> 06:37:23,627 the partial operation over at 12247 06:37:23,627 --> 06:37:24,261 the new Good data center but 12248 06:37:24,261 --> 06:37:27,261 that you are licensing it 12249 06:37:28,833 --> 06:37:29,600 meaning that nobody could go 12250 06:37:29,600 --> 06:37:33,200 ahead and or and fill in 12251 06:37:34,710 --> 06:37:34,738 the money or or move in and 12252 06:37:34,738 --> 06:37:35,306 operate that separately from 12253 06:37:35,306 --> 06:37:37,306 the existing provider. 12254 06:37:39,944 --> 06:37:40,611 I can't believe after all 12255 06:37:40,611 --> 06:37:41,312 the work we've done building 12256 06:37:41,312 --> 06:37:43,712 relationships that nobody had 12257 06:37:45,882 --> 06:37:46,517 the courtesy to say that Well 12258 06:37:46,517 --> 06:37:47,251 actually I probably should 12259 06:37:47,251 --> 06:37:50,251 believe it because obviously it 12260 06:37:51,522 --> 06:37:52,223 was hidden from the public. 12261 06:37:52,223 --> 06:37:52,824 The fact that you were taking 12262 06:37:52,824 --> 06:37:55,824 away the only place that 12263 06:37:57,695 --> 06:37:58,362 homeless people could go in 12264 06:37:58,362 --> 06:37:59,970 the entire city and not be 12265 06:37:59,970 --> 06:38:02,970 addressed at least from 9 to 5 12266 06:38:03,101 --> 06:38:03,835 for a few days a week. 12267 06:38:03,835 --> 06:38:04,635 I'd like to understand how this 12268 06:38:04,635 --> 06:38:07,635 decision occurred and was that 12269 06:38:09,573 --> 06:38:09,974 included in the budget 12270 06:38:09,974 --> 06:38:10,409 resolution? 12271 06:38:10,409 --> 06:38:12,409 >> Thank you. 12272 06:38:15,980 --> 06:38:16,848 Thank you. 12273 06:38:16,848 --> 06:38:18,649 Next our last caller is caller 12274 06:38:18,649 --> 06:38:21,649 with the last four digits 8700 12275 06:38:25,890 --> 06:38:26,291 please begin. 12276 06:38:26,291 --> 06:38:28,291 Thank you. 12277 06:38:31,262 --> 06:38:32,163 First of all, Joy Senator a 12278 06:38:32,163 --> 06:38:32,730 first of all, a big thank you 12279 06:38:32,730 --> 06:38:35,130 and five stars for 12280 06:38:36,834 --> 06:38:37,235 the performance by our deputy 12281 06:38:37,235 --> 06:38:39,235 city clerk. 12282 06:38:43,908 --> 06:38:44,576 Thank you so much And the next 12283 06:38:44,576 --> 06:38:45,900 PRESIDENT For your humor was 12284 06:38:45,900 --> 06:38:47,900 present today. 12285 06:38:49,781 --> 06:38:50,247 Thank you. 12286 06:38:50,247 --> 06:38:50,882 Thank you. 12287 06:38:50,882 --> 06:38:51,783 I really enjoyed that. 12288 06:38:51,783 --> 06:38:55,383 And then a request from MR. 12289 06:38:56,200 --> 06:38:56,721 Stump. 12290 06:38:56,721 --> 06:38:57,421 I'm wondering if you could 12291 06:38:57,421 --> 06:39:00,421 during the public comment give 12292 06:39:03,127 --> 06:39:03,928 the public his nine step plan 12293 06:39:03,928 --> 06:39:06,928 for fda and that sounds 12294 06:39:07,798 --> 06:39:08,566 interesting. 12295 06:39:08,566 --> 06:39:12,166 Next I want to speak to 12296 06:39:13,571 --> 06:39:14,439 the gentleman who used the word 12297 06:39:14,439 --> 06:39:18,639 union bust and I felt his anger 12298 06:39:19,811 --> 06:39:20,478 in those words. 12299 06:39:20,478 --> 06:39:22,878 I respect that anger. 12300 06:39:25,783 --> 06:39:26,484 Next, I love the boldness and 12301 06:39:26,484 --> 06:39:30,840 the fight that was present in 12302 06:39:31,623 --> 06:39:32,290 the chamber today. 12303 06:39:32,290 --> 06:39:32,991 Did you feel the beautiful 12304 06:39:32,991 --> 06:39:36,591 tapestry of all the people to 12305 06:39:39,197 --> 06:39:43,397 be There was a little bit like 12306 06:39:44,202 --> 06:39:44,870 what we feel when we say one 12307 06:39:44,870 --> 06:39:47,870 people, one family, one San 12308 06:39:48,973 --> 06:39:49,341 Diego I'm going to get to this 12309 06:39:49,341 --> 06:39:49,908 tomorrow. 12310 06:39:49,908 --> 06:39:52,308 Look forward to that. 12311 06:39:55,780 --> 06:39:56,181 But to all. 12312 06:39:56,181 --> 06:39:56,782 Thank you. 12313 06:39:56,782 --> 06:39:57,315 This concludes lunch and 12314 06:39:57,315 --> 06:39:57,682 the public comment. 12315 06:39:57,682 --> 06:39:58,350 All right. 12316 06:39:58,350 --> 06:40:00,619 You can catch me at The Late 12317 06:40:00,619 --> 06:40:00,952 Show at the Comedy Club later 12318 06:40:00,952 --> 06:40:01,553 tonight. 12319 06:40:01,553 --> 06:40:02,187 With that, does the city 12320 06:40:02,187 --> 06:40:02,887 attorney have anything to 12321 06:40:02,887 --> 06:40:05,887 report out in closed session? 12322 06:40:07,594 --> 06:40:07,992 There is nothing to report. 12323 06:40:07,992 --> 06:40:08,360 All right. 12324 06:40:08,360 --> 06:40:09,940 Thank you. 12325 06:40:09,940 --> 06:40:09,694 With that we will now turn 12326 06:40:09,694 --> 06:40:11,898 counsel to the regularly 12327 06:40:11,898 --> 06:40:12,597 scheduled council meeting 12328 06:40:12,597 --> 06:40:13,231 tomorrow, Tuesday, JUNE 23rd, 12329 06:40:13,231 --> 06:40:13,631 2026 at 10 A.M. Or shortly 12330 06:40:13,631 --> 06:40:15,631 thereafter.