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[15:23] and
[16:32] and and I will answer.
[16:32] All right.
[16:33] Good morning.
[16:33] I will now call the City
[16:37] council meeting of Monday, JUNE
[16:38] 22nd 2026 to order that
[16:38] the clerk please call the Roll
[16:41] Council member Campbell your
[16:48] government Council member
[16:49] Whitburn here Council Member
[16:53] Foster Council Member Von
[16:54] Wilpert Council Member Council
[16:54] PRESIDENT Pro Tem Lee here
[17:00] Council Member Can't be out
[17:00] here Council Member Moreno
[17:06] Council Member Julio Rivera and
[17:06] Council PRESIDENT LaCava
[17:06] present.
[17:07] Also attending the meeting are
[17:12] City Attorney Heather Ferber,
[17:13] independent budget analyst
[17:18] Jillian and Elina of Council
[17:18] Affairs advisor in the mayor's
[17:19] office.
[17:19] But as I learned myself here
[17:23] Deputy City Clerk Kevin Smith
[17:24] All right, thank you Deputy
[17:24] Clerk a quorum is now present.
[17:25] We will begin this morning with
[17:30] the invocation by Deputy Clerk
[17:30] Smith followed with an
[17:31] acknowledgment and the Pledge
[17:32] of Allegiance let by council
[17:35] member Campbell Brandt.
[17:42] Those who hold office in
[17:42] the city a spirit of wisdom,
[17:43] charity and justice that were
[17:47] steadfast purpose They MAY
[17:48] faithfully serve in their
[17:48] offices to promote
[17:53] the well-being of all people.
[17:53] We respectfully acknowledge
[17:59] that the communication or
[18:00] the original inhabitants of
[18:01] the Unceded land now known as
[18:06] San Diego Despite enduring
[18:06] the horrors of genocide and
[18:07] colonization, the community
[18:11] spirit remains unbroken.
[18:12] We honor the resilience of
[18:13] their ancestors who fought to
[18:17] protect their culture and land
[18:18] and today they carry their
[18:18] legacy forward ensuring that
[18:23] their traditions continue to
[18:24] thrive and gratitude and
[18:25] strength We stand with Cooma,
[18:29] our nation connected to our
[18:30] past and committed to a
[18:30] thriving future.
[18:36] We place the flag, place your
[18:37] hand over your heart and let's
[18:41] begin by going to the flag
[18:42] United States of America and to
[18:42] the Republic for which it
[18:46] stands one nation under GOD,
[18:47] indivisible with liberty and
[18:52] justice for all.
[18:53] >> All right With that Deputy
[18:54] clerk, please go over how
[18:58] the public can offer their
[18:59] testimony.
[18:59] >> Thank you, Council
[19:00] PRESIDENT.
[19:00] I will now now highlight
[19:05] the slide on the screen that
[19:05] reviews how the public can
[19:06] offer their public testimony
[19:07] during today's meeting.
[19:10] If you are in person please
[19:11] complete a speaker slip located
[19:12] at the entrance of chambers and
[19:13] bring it to the front of
[19:17] the room No further in-person
[19:18] testimony will be taken once
[19:18] the Council begins Virtual
[19:19] testimony for better meeting
[19:23] management purposes each
[19:23] speaker will have one minute
[19:24] per item per person.
[19:27] If you would like to speak on
[19:28] three or more items you will
[19:29] have a maximum of three
[19:29] minutes.
[19:34] All right.
[19:35] Thank you Deputy Clerk And as a
[19:36] reminder non agenda public
[19:36] comment which will be taken at
[19:37] the end of the session with
[19:39] the opportunity to speak freely
[19:40] on items within city
[19:40] jurisdiction items on
[19:41] the docket we encourage
[19:45] the public to offer their
[19:46] testimony to inform the Council
[19:47] members of their consideration
[19:51] or deliberations on that docket
[19:52] item.
[19:52] So with that Deputy Clerk
[19:53] please read the closed session
[19:58] items into the record.
[19:59] Conference with Legal Counsel
[20:00] Existing litigation pursuant to
[20:03] California Government Code
[20:04] Section 5495 6.91 c.
[20:10] S one Sandra Silva versus City
[20:11] of San Diego at all the to
[20:11] repeat versus city of San Diego
[20:12] c.
[20:15] S three Maria del Rosario Nunez
[20:15] Munoz versus City of San Diego
[20:16] c.
[20:21] S four Jesse Torres versus
[20:22] Civil Service Commission of
[20:22] the city of San Diego c.
[20:26] S five Denise Wadsworth at all
[20:27] versus City of San Diego at
[20:27] all.
[20:29] All right.
[20:30] >> With that please proceed
[20:35] with public comment.
[20:36] >> Thank you.
[20:37] We will begin with in-person
[20:42] public comment.
[20:43] Jacob Lewis Edwards please come
[20:43] forward.
[20:47] You are requested to speak on c
[20:48] us one c us two and see us
[20:49] three.
[20:49] >> You'll have three minutes to
[20:54] speak.
[20:54] Thank you members of our city
[21:00] council and allow me to speak
[21:00] in front of you.
[21:01] I've spoken from you about many
[21:06] things and these items include
[21:06] lawsuits to the city of reading
[21:12] slips and falls and such.
[21:12] i'm going to speak upon myself
[21:13] now.
[21:14] I usually speak upon for what
[21:18] is going on in a general sense.
[21:19] I spoke to you about how our
[21:24] cyber networks were hijacked
[21:25] going around eight years ago.
[21:25] My uncle his possession of
[21:30] the dhs over our country
[21:30] cybersecurity networks
[21:31] hijacked.
[21:31] I'm sorry to interrupt.
[21:32] Can you speak to the closed
[21:33] session items that you
[21:37] identified as opposed to a now?
[21:38] Yes, I am getting to that, sir.
[21:41] I'm getting to that And that
[21:42] handful of federal field agents
[21:42] assisted the mob in hijacking
[21:47] our federal government agencies
[21:48] flooding terrorized along
[21:48] the way by them pestered,
[21:49] tormented, harassed, harassed
[21:52] any trace of anything I've gone
[21:53] through wiped out and it
[21:59] continues to this day now is
[22:00] prevented that until I get into
[22:05] a shelter if I am able to get
[22:05] into a shelter and that is here
[22:06] in the city.
[22:09] It's set up there on customer
[22:10] tormented, harassed, terrorized
[22:10] people, given assignments
[22:15] within the shelter to hurt me.
[22:16] And it all comes from federal
[22:16] activity currently and
[22:21] prevented from getting into a
[22:21] shelter.
[22:22] I sleep at the front door here
[22:23] at the Civic Center to stay
[22:26] safe under a camera.
[22:27] But I go through even here I
[22:32] wouldn't sue the city of San
[22:33] Diego.
[22:34] I love this city but I I'd like
[22:34] to bring to your attention I
[22:38] mean I could file a lawsuit but
[22:38] I'm not but I'm going to bring
[22:39] it to your attention.
[22:43] Just two nights ago sleeping
[22:44] right here at the front door.
[22:44] Three guys nice designer jeans,
[22:49] nice shoes And it was overnight
[22:50] standing right over me loudly
[22:50] conversating being rude.
[22:54] It was very unruly over
[22:55] somebody trying to sleep.
[23:00] I mentioned that to them so
[23:01] please have some consideration.
[23:01] And I mentioned how federal
[23:05] field agents who terrorize me
[23:06] will set people up to do this.
[23:06] I'm not saying that's the case
[23:10] but it sure seems so.
[23:11] They got very angry at me.
[23:12] One of them pulls his belt off,
[23:16] stands over me and says
[23:16] Threaten to beat me in a very
[23:21] aggressive threatening manner.
[23:22] I said Now you're going to
[23:23] threaten to beat a homeless guy
[23:23] that you were standing over.
[23:27] I said Really?
[23:27] He got more abrasive cop bag
[23:31] that he So I walked off and
[23:32] called 911911 dispatchers will
[23:36] not take a report from any of
[23:37] the activity that I've gone
[23:38] through in the past It struck
[23:42] me from reporting anything
[23:42] The dispatcher wanted me to
[23:47] confirm my telephone number
[23:48] before he would dispatch
[23:53] anybody in an emergency call.
[23:53] >> That's not normal protocol
[23:54] in any city.
[23:54] Usually it's a dispatch
[23:55] immediately.
[23:58] That's what I got.
[23:59] Thank you for your comment that
[23:59] that concludes the witness who
[24:00] died.
[24:03] And for the record you did not
[24:03] speak to any of the closed
[24:04] session items so thank you.
[24:07] I'm a human being.
[24:08] That does conclude in-person
[24:09] public comment.
[24:12] I've started the five minute
[24:13] timer in council chambers.
[24:13] We will now turn to the virtual
[24:14] care in which there are
[24:16] currently three participants
[24:17] wishing to speak.
[24:21] We will first go to original
[24:22] draft.
[24:26] Could you please indicate which
[24:27] closed session item or items
[24:32] you wish to speak to me?
[24:32] I'm going to touch on all of
[24:33] them.
[24:33] Okay.
[24:36] You have three minutes.
[24:36] >> Please proceed.
[24:36] Okay.
[24:37] So with these continued trips
[24:41] and fall incidents I mean it's
[24:41] quite ridiculous how much money
[24:45] we wind up spending to in
[24:46] settlements when you know just
[24:51] these problems can be fixed and
[24:52] you know, knowing that someone
[24:56] has tripped and fall fell in
[25:01] these areas or had an incident
[25:01] there, you know, have you gone
[25:02] and mitigated that?
[25:06] Is that something that you
[25:06] know, was instantly put on
[25:07] the list of things to do to
[25:12] make sure that there won't be
[25:12] other incidents that arise?
[25:13] And I find it interesting as
[25:16] well that some of you say this
[25:17] case arises from a slip and
[25:17] fall.
[25:22] This case arises from a slip
[25:22] and fall and then it's like
[25:23] this matter arises from an
[25:26] alleged trip and fall on
[25:27] the sidewalk.
[25:31] So I mean what leads you to
[25:32] treat the case in that manner
[25:36] And then for you you know
[25:37] the case five in the Wadsworth
[25:41] case, you know this one also it
[25:42] says this case arises out of an
[25:45] alleged scooter incident But
[25:46] this is an actual death.
[25:50] Somebody died and due to
[25:51] dangerous condition.
[25:52] So I feel like when you guys
[25:55] want to, you know, go under
[25:56] the Brown Act and say that
[25:57] you're like providing just
[26:00] enough information for a
[26:01] summary I mean you're leaving
[26:01] out some pretty significant
[26:05] information and you know, for
[26:09] the people to know and you know
[26:10] to for someone to have died due
[26:14] to this incident you know, and
[26:15] you to to consider it alleged
[26:16] in the other ones you know are
[26:19] obviously true or whatever you
[26:20] know it just kind of discredits
[26:24] the person dying it feels like
[26:28] And then with this Jesse Taurus
[26:29] case and the Civil Service
[26:30] Commission, you know, this
[26:34] officer was engaged in
[26:34] misconduct off duty.
[26:35] And so, you know, officer
[26:39] should be held to a, you know,
[26:44] standard much like the people.
[26:45] And I find that the people are
[26:46] held to a higher standard than
[26:49] law enforcement and or any kind
[26:50] of public official.
[26:50] And you know, when the people
[26:54] engage in crimes, you know you
[26:54] want to hold them accountable.
[26:55] But then we have, you know,
[26:58] officers whether it's on duty
[26:59] or off duty and they're engaged
[27:03] in misconduct abuse, you know,
[27:04] abuse of power or different
[27:05] things like that.
[27:08] I mean.
[27:09] Andrea Ebbing you know, within
[27:09] Anthony Warner I mean he
[27:13] brutally assaulted her and
[27:14] she's sitting in jail right now
[27:15] and they made her do a
[27:18] competency evaluation and they
[27:19] have deemed her incompetent
[27:19] which is absolutely ridiculous
[27:23] which means that stalls of
[27:24] proceedings and all of this And
[27:25] so it's like you guys wind up
[27:27] criminal izing the people when
[27:28] they've been abused by law
[27:32] enforcement.
[27:33] So I mean this man needs to be
[27:37] held to a standard much like
[27:37] the people and even higher I
[27:38] would say thank you very
[27:42] comment.
[27:42] The caller did speak to all
[27:43] the closed session items So
[27:46] thank you very much.
[27:47] Our next virtual commenter is
[27:51] with the caller with the last
[27:52] four digits 8700 please tell us
[27:56] which items you wish to speak
[28:05] to and begin your comments.
[28:05] Excuse me.
[28:06] Thank you.
[28:11] Deputy Clerk Joy is Senator and
[28:15] I would speak on all of them.
[28:15] Okay.
[28:16] Please proceed.
[28:19] And number one which is a trip
[28:24] and fall accident again I'm
[28:24] going to speak to the public
[28:28] deer public I really encourage
[28:29] you to claim your own self
[28:33] safety and be your own advocate
[28:34] when you're out walking as I
[28:38] try to do because it's
[28:39] dangerous out there on
[28:40] the sidewalks and we need to
[28:43] watch out for ourselves.
[28:46] So please consider that I'm
[28:47] number two which is a slip and
[28:53] fall incident and well I'll say
[28:54] on that is incident versus an
[28:57] accident doesn't seem as solid
[29:01] a case for the plaintiff here.
[29:02] I am not sure on that.
[29:05] So on number three alleged trip
[29:06] and fall on sidewalk so with
[29:11] alleged I'm not clear again yet
[29:15] what I'm not clear is what
[29:16] happened and it doesn't seem
[29:17] like you are either in what's
[29:20] being presented and that
[29:21] the evidence will need to be
[29:21] presented so that you really
[29:25] can move forward on it.
[29:26] But best of luck on that.
[29:29] So item number four which is
[29:30] the Civil Service Commission
[29:35] item a writ of mandamus which
[29:39] in MARCH and it means we
[29:40] command and also this really
[29:44] struck me when I looked it up
[29:44] it is an extraordinary remedy.
[29:48] So I'm not clear what that
[29:49] means but I did Google a civil
[29:54] service commission and they
[29:54] have a very positive
[29:55] reputation.
[29:59] So that was really wonderful to
[29:59] read, You know, on
[30:00] the settlements and judgments
[30:04] which we looked at recently
[30:04] mostly regarding speedy equal
[30:08] rights within number one item
[30:08] of the number of cases that
[30:12] occur to I And they talked
[30:13] about speeding up the process
[30:17] because the costs are
[30:17] escalating.
[30:18] So please I don't know when
[30:22] this termination in
[30:23] the original added some
[30:23] information which I didn't know
[30:27] about so it sounds like a
[30:28] pretty serious thing and then a
[30:31] termination is involved So I'll
[30:32] just send you blessings on that
[30:33] and best of luck for all
[30:36] parties In the Scooter incident
[30:41] which was alleged excuse me
[30:42] Same incident.
[30:42] Alleged.
[30:42] Oh yes.
[30:45] So there is an incident alleged
[30:46] e-scooter incident I learned a
[30:51] lot during our e-scooter time
[30:51] and when they were present in
[30:55] San Diego mostly I learned that
[30:56] we have many levels, many
[30:59] layers of codes and regular
[31:00] ations that can tie our hands
[31:04] in litigation.
[31:05] I think we learned a lot from
[31:09] our e-scooter period and it's
[31:14] it's just a learning lesson for
[31:15] us and I certainly learned a
[31:15] lot.
[31:19] So we move forward and I thank
[31:20] you very much for listening and
[31:21] love to all have a beautiful
[31:24] day and a beautiful week.
[31:25] Thank you to the caller for
[31:26] staying on topic.
[31:29] Thank you for those comments.
[31:30] Please note that the five
[31:30] minute timer did conclude with
[31:31] no additional speakers left in
[31:34] the queue That does conclude
[31:38] closed session Public comment
[31:39] All right.
[31:39] >> Thank you Deputy Clerk With
[31:40] that we will now recess into
[31:43] closed session and reconvene
[31:44] council today at 2 P.M. Or
[45:05] shortly thereafter
[46:50] and then
[46:56] All right started.
[46:57] >> Good afternoon.
[46:57] I will now reconvene the city
[47:01] council meeting on Monday, JUNE
[47:02] 22nd 2026 that the clerk please
[47:03] call the Roll Council member
[47:07] Campbell Council Member
[47:13] Whitburn Council Member Foster
[47:13] Council Member Von Wilpert
[47:19] Council PRESIDENT Pro Tem
[47:20] The Council Member Campo
[47:25] Council Member Moreno Council
[47:26] Member Eli Rivera and Council
[47:31] PRESIDENT LaCava Present.
[47:32] Also attending the meeting are
[47:32] Assistant City Attorney
[47:37] Michelle Garland Jordan more
[47:38] fiscal and policy analyst with
[47:39] the Office of the Independent
[47:41] Budget Analyst and myself here
[47:47] Deputy City Clerk Kevin Smith.
[47:48] All right, a quorum is now
[47:49] present.
[47:49] So first of all start off
[47:50] whether there's any comments
[47:54] from the mayor's office,
[47:55] council members, city attorney,
[47:55] independent budget analyst, our
[48:00] city clerk and not seeing any
[48:00] We'll go on Deputy Clerk Please
[48:01] go over how the public can
[48:06] offer their testimony.
[48:07] I will not I don't know how I
[48:07] like to slide on the screen
[48:08] their reviews how the public
[48:11] can offer their public
[48:12] testimony during this
[48:13] afternoon's meeting.
[48:13] The order can be found on
[48:14] the agenda Summary found online
[48:18] or at the table in the back of
[48:19] the room.
[48:19] If you are in person please
[48:20] complete the speaker slip
[48:20] located at the entrance of
[48:23] chambers and bring it to
[48:24] the front of the room.
[48:24] Council ambassadors are
[48:25] available near the entrance of
[48:29] chambers and can assist with
[48:30] questions and speaker slips.
[48:30] No further in-person testimony
[48:31] will be taken once the council
[48:35] begins Virtual testimony.
[48:36] >> All right.
[48:42] And as a friendly reminder non
[48:42] agenda public comment which
[48:43] will be taken at the end of
[48:44] the day it's an opportunity to
[48:44] speak on anything that's within
[48:47] the broader city of San Diego
[48:48] Purview docketed items We
[48:49] request that you speak to
[48:53] the item itself Inform
[48:54] the Council about whether you
[48:55] support an item or reject an
[48:59] item and your reasons why So
[49:00] focusing on the docket item
[49:05] will be appreciated So with
[49:05] that Deputy Clerk please
[49:14] introduce item 200 item 200
[49:15] Public hour Feasibility study
[49:15] Phase two report.
[49:16] All right.
[49:20] Thank you, sir.
[49:21] And a reminder to everyone this
[49:22] is an information item.
[49:27] No motion will be taken And now
[49:31] settle then please introduce
[49:32] yourselves for the record and
[49:33] let us know how much time
[49:43] you'll need.
[49:44] >> There we go.
[49:44] Try again.
[49:44] There we.
[49:49] Keep on Heather Rider, deputy
[49:50] director for energy in
[49:51] the Department of General
[49:51] Services.
[49:52] We need about 15 minutes.
[49:55] All right, Begin when you're
[49:56] ready.
[49:56] All right.
[49:56] Thank you very much.
[49:57] Thank you.
[49:57] Council PRESIDENT, members of
[50:01] council as many of you are
[50:02] aware and as a corollary to
[50:02] the award of the Genie
[50:07] franchise, the city started
[50:07] studying alternatives to a
[50:12] franchise agreement for
[50:13] the delivery of electricity
[50:14] within the city boundary and as
[50:14] public power feasibility that
[50:19] study was split into two parts.
[50:20] The Phase one report was
[50:20] brought to council in
[50:23] the summer of 2023.
[50:24] It did find basic economic and
[50:29] technical feasibility so we
[50:29] moved into phase two which was
[50:30] a much deeper dive into
[50:35] the economic and technical
[50:36] feasibility as well as
[50:36] incorporating changes in
[50:41] the regulatory space that have
[50:42] happened between those periods.
[50:43] We brought on new gen
[50:48] strategies to act as our
[50:49] subject matter expert and
[50:49] technical consultant in
[50:50] executing that study And so I'm
[50:54] going to pass it over to Scott
[50:54] to go over the findings.
[50:55] Great.
[50:55] Thank you Heather.
[50:56] Good afternoon.
[50:59] Council PRESIDENT Council
[51:00] members Staff As I mentioned my
[51:01] name is Scott Burnham.
[51:01] I'm a partner and project
[51:07] manager with New Data Strategy
[51:07] Solutions.
[51:08] I'm joined here today with DR.
[51:12] Nelson Beck along with Siemens
[51:12] Engineering, Andrew Atwater
[51:13] with Beebe and a consultant
[51:15] that assisted us with the study
[51:15] .
[51:22] Excellent.
[51:22] >> All right.
[51:23] The bottom line in terms of
[51:24] the phase two study is that we
[51:28] found that the analysis for
[51:29] developing and creating an mcu
[51:34] and municipal electric utility
[51:35] from the San Diego Gas Electric
[51:35] Genie assets was both
[51:36] economically and technically
[51:40] feasible.
[51:41] The results depend on the value
[51:41] of the assets that the city
[51:46] pays to acquire them.
[51:47] We conducted analysis using two
[51:47] approaches to cost approaches
[51:48] to value.
[51:52] We'll talk more about that
[51:53] The Oakland original costs less
[51:54] depreciation at the low end and
[51:58] replacement costs new less
[51:59] depreciation on the high end.
[52:00] This analysis focuses on
[52:05] the delivery assets only
[52:06] There's no generation assets to
[52:10] be acquired from Genie
[52:10] The generation power supply
[52:11] portion of the mcu was assumed
[52:17] to be supplied by sdp.
[52:18] >> This data currently serves
[52:18] the majority of the city Load
[52:23] results suggest a range of
[52:27] savings between 6 and 6% to 16%
[52:28] depending on the assets paid to
[52:32] be acquired between 7 billion
[52:33] and $19 billion At the 30 year
[52:38] conclusion of the 30 year study
[52:38] .
[52:39] More broadly, the analysis that
[52:40] we conducted was what we call
[52:44] an overnight analysis.
[52:44] It's assuming that
[52:45] the municipal utility would
[52:50] essentially start within
[52:51] the year.
[52:51] That's not feasible.
[52:52] We know that We realize that
[52:56] will take at least 10 or 15
[52:57] years to establish a municipal
[52:57] utility.
[53:02] But the approach uses an
[53:03] overnight analysis as a prudent
[53:04] approach to understand the cost
[53:07] and determine the feasibility.
[53:14] We came before you
[53:15] approximately three years ago
[53:15] with the results of the Phase
[53:16] one study.
[53:16] >> There's been significant
[53:20] changes since then.
[53:21] The relative to the study we
[53:21] had additional information and
[53:27] detailed data provided by Jenny
[53:28] and that informed a lot of
[53:28] the results of the study.
[53:33] We also recognize there have
[53:33] been significant changes in
[53:34] policy and the regulatory
[53:35] environment that also impact
[53:35] the study and the Phase two
[53:42] report Phase two report In
[53:43] terms of the changes in
[53:43] the utility environment,
[53:44] certainly a change in
[53:48] the landscape relative to
[53:49] the assets themselves.
[53:50] Again, the information we got
[53:54] from Jenny that information
[53:54] helped improve the cost
[53:55] analysis relative to
[54:00] the physical separation of
[54:00] the two systems.
[54:01] If the mou is to be formed it
[54:02] would be electrically isolated
[54:06] from Jenny who have the ability
[54:06] to do so and that would require
[54:07] investment on behalf of
[54:11] the city.
[54:12] In terms of the regulatory
[54:13] environment, the process
[54:18] continues to evolve relative to
[54:19] how the cpc would develop or
[54:25] what would determine the cost
[54:25] for the mcu to acquire these
[54:26] assets.
[54:26] As you're aware, the city of
[54:27] San Francisco is going through
[54:31] a similar exercise.
[54:32] They're a little further ahead.
[54:32] They've been to the cpc.
[54:33] They have some preliminary
[54:36] results relative to how the cpc
[54:37] would then then look at
[54:37] the acquisition costs.
[54:42] But there are other policy and
[54:43] risks to be considered in terms
[54:44] of climate change, commodity
[54:48] cost, wildfire mitigation as
[54:49] you know that's a big ticket
[54:50] item relative to costs and cost
[54:57] recovery.
[54:57] The Phase two approach focuses
[55:02] on a 30 year cash needs.
[55:03] It develops what we call a
[55:04] revenue requirement for
[55:04] the mcu.
[55:05] That's the total dollars to
[55:09] operate the mcu in comparison
[55:10] to the total dollars paid to us
[55:11] based on existing rates and
[55:15] assumptions about future rates.
[55:16] For Jenny, as I mentioned, it's
[55:17] only acquiring assets within
[55:22] the city primarily distribution
[55:22] assets but some limited
[55:28] transmission assets as dcp as
[55:29] dcp sorry the cta will continue
[55:30] to provide power supply to
[55:34] everyone And it's this buildup
[55:34] of the revenue requirement that
[55:35] is the crux of the analysis.
[55:39] So we're looking at the that
[55:40] the system as mcu compared does
[55:46] cost on an all in basis
[55:47] compared to the system as I see
[55:47] each unit continue and
[55:51] the status quo the analysis
[55:52] suggests the that there is
[55:52] indeed savings it shows
[55:57] the benefit of public power
[55:57] there are but current
[55:58] opportunity for efficiency
[56:03] local control and cost savings.
[56:04] Again this is done on what we
[56:05] call an overnight analysis
[56:09] recognizing that there would
[56:10] still be a different time
[56:16] component to this in terms of
[56:16] the assets to be acquired.
[56:17] As I mentioned, almost all
[56:21] the assets almost all
[56:22] the assets in the city would be
[56:22] acquired approximately 800
[56:27] miles of secondary conductor
[56:28] conductor line wires,
[56:29] transformers meters and other
[56:29] equipment.
[56:33] The city would be responsible
[56:34] for serving approximately six
[56:34] 660,000 customers.
[56:40] The city would also acquire 42
[56:41] electrical substations within
[56:41] the municipal boundary and
[56:42] the sub transmission conductor
[56:47] between those substations
[56:47] the city would not acquire
[56:48] the high voltage system
[56:52] the bulk transmission system or
[56:52] any generation assets from a
[56:58] genie.
[56:59] As I mentioned, we conducted
[57:00] what we call a cost based
[57:04] purchase price analysis.
[57:05] This cost based analysis begins
[57:06] on a low end and with the only
[57:10] older original cost less
[57:11] depreciation and the high end
[57:11] replacement cost new less
[57:15] appreciation In reality
[57:16] the cost would likely come in
[57:16] between those two values.
[57:20] But we developed these bookend
[57:21] values at $2.4 billion for
[57:24] original cost of depreciation
[57:25] and $7.6 billion replacement
[57:30] cost new less depreciation In a
[57:31] transaction a prudent seller
[57:32] likely would likely not accept
[57:37] our original cost appreciation
[57:37] .
[57:38] That's a book value essentially
[57:39] and a prudent buyer is unlikely
[57:39] to accept replacement cost new
[57:43] less depreciation which is why
[57:44] would in all likelihood that
[57:44] costs would come in between
[57:49] those two values somewhere
[57:50] The difference of that $5.2
[57:50] billion is significant and it
[57:54] does in the age of the assets
[57:55] certainly has an impact on that
[57:55] valuation.
[58:00] We also assumed that there
[58:01] would be additional costs
[58:01] upfront approximately $912
[58:02] million of upfront cost to fund
[58:07] that separation analysis again
[58:07] creating to electrically
[58:08] ability to have two
[58:12] electrically isolated systems
[58:13] startup costs as well and as
[58:14] well as $470 million in working
[58:18] capital.
[58:19] Startup costs include
[58:20] the development of the utility
[58:23] to create an operating utility
[58:23] ,financial reserves, liquidity
[58:29] measurements and the like.
[58:30] This next slide shows a summary
[58:31] of the key assumptions.
[58:31] As I mentioned, the purchase
[58:35] price is probably the most
[58:35] dramatic key in terms of
[58:39] the analysis that range between
[58:40] 2.4 billion and 7.6 billion but
[58:41] also the assumptions around
[58:47] long term rate growth for ge we
[58:47] assume 4% per year going
[58:51] forward That was based on
[58:52] information available at
[58:52] the time From the general rate
[58:53] case it's probably a little bit
[58:58] lower than historic but we
[58:58] believe there was a
[58:59] conservative assumption other
[59:03] elements include the payment in
[59:04] lieu of franchise fees and
[59:04] public benefits.
[59:05] As I mentioned, the separation
[59:09] costs, startup costs upfront
[59:10] working and of course staffing
[59:11] one of the critical elements
[59:15] relative to difference between
[59:15] the phase one and the phase two
[59:16] analysis was there's a more
[59:19] detailed analysis around
[59:20] staffing.
[59:20] The intent would be to to
[59:21] address the concerns of ibew
[59:24] and others and acquire
[59:31] the workforce from any.
[59:31] In summary of the results.
[59:36] We've got two graphics here on
[59:37] the left.
[59:37] You can see there's selected
[59:38] years between the oclc and
[59:42] again on the low end the rca
[59:43] and on the high end.
[59:44] So you can see we're showing
[59:45] your ten, your 20 and your 30
[59:47] for the ocd.
[59:47] So significant savings of $19
[59:48] billion at the end of
[59:52] cumulative savings in your 30
[59:53] the replacement costs new less
[59:56] appreciation is slightly lower
[59:57] at $7 billion There is a
[1:00:01] crossover in the ocd case It's
[1:00:02] year one in which mean you
[1:00:02] would show cash positive for
[1:00:06] the replacement cost you looked
[1:00:07] at less depreciation the old
[1:00:08] either higher asset that
[1:00:08] crossover occurs and estimated
[1:00:11] in year 12 so the city would
[1:00:12] not recognize savings upfront
[1:00:16] if indeed they purchased a
[1:00:21] price at at rc an oldie
[1:00:21] The next slide shows on an
[1:00:27] annual basis looking out over
[1:00:28] the 30 year forecast the period
[1:00:29] of the study on the left we saw
[1:00:29] the ocr and all the numbers You
[1:00:31] can see showing cash positive
[1:00:32] there in year one and
[1:00:38] continuing to grow over time On
[1:00:39] the right we show our you know
[1:00:39] you can see that the blue bars
[1:00:40] there are the city of San Diego
[1:00:43] costs the mcu costs that would
[1:00:45] be higher than any costs for
[1:00:46] the first 12, 11, 12 years in
[1:00:51] the study we did conduct a
[1:00:56] sensitivity on the relative to
[1:00:57] the assumptions about
[1:01:01] the growth rate of the retail
[1:01:01] rates.
[1:01:02] As I mentioned, we use the 4%
[1:01:07] approach annual approach for
[1:01:08] city Jeanie retail rates We
[1:01:08] believe that that was
[1:01:11] reasonable based on recent rate
[1:01:12] case information.
[1:01:12] Historically that number is
[1:01:15] probably closer to about 6% as
[1:01:16] you can see in this analysis
[1:01:16] here.
[1:01:21] What we're trying to show in
[1:01:22] this analysis I should say is
[1:01:25] that at 3% at the lower end of
[1:01:26] the range of growth rates,
[1:01:29] the savings is significantly
[1:01:30] less at 6% that that range goes
[1:01:36] up to significant and
[1:01:36] significant savings, a
[1:01:37] difference of about $60 billion
[1:01:37] between those.
[1:01:41] Now this is based on the ocr
[1:01:42] acquisition cost case but you
[1:01:46] can see the sensitivity to
[1:01:46] the results relative to
[1:01:47] the assumption made for
[1:01:50] the genie rates.
[1:01:51] There are certainly several key
[1:01:55] assumptions moving forward that
[1:01:56] would impact future
[1:01:56] feasibility.
[1:01:57] Certainly policy direction
[1:02:00] around climate change, consumer
[1:02:01] preference, electrification and
[1:02:02] the like relative to projected
[1:02:06] low growth How it will impact
[1:02:06] this analysis certainly
[1:02:10] direction at the state level
[1:02:11] looking at affordability,
[1:02:15] looking at reliability in terms
[1:02:16] of investment requirements for
[1:02:17] systems such as energy needs
[1:02:20] and the sensitivity to retail
[1:02:21] rates is an important
[1:02:25] consideration as well.
[1:02:26] Looking out over what's
[1:02:26] happening at the state at
[1:02:30] the cpi you see relative to San
[1:02:30] Francisco felt that
[1:02:31] the precedents there in terms
[1:02:34] of that court decision,
[1:02:35] the preliminary court decision
[1:02:36] looking at legislation, Senate
[1:02:40] bill 875 looking at municipal
[1:02:40] ization efforts across
[1:02:44] the state as well as at the cpi
[1:02:45] you see regarding wildfire
[1:02:49] investments and the past in
[1:02:53] the future is a major unknown
[1:02:53] conclusion.
[1:02:58] >> The Phase two analysis is
[1:02:58] conducted has significantly
[1:02:59] refined the financial
[1:03:02] projections.
[1:03:03] We have a lot more detailed
[1:03:04] data relative to the asset
[1:03:04] inventory relative to
[1:03:07] the estimated costs.
[1:03:08] The certainly the age of
[1:03:08] the assets are materially older
[1:03:24] than originally assumed
[1:03:25] creating a different difference
[1:03:25] disparity between the ocr and
[1:03:26] replacement costs new less
[1:03:26] depreciation values.
[1:03:26] The Phase two does find
[1:03:26] financial and technical
[1:03:26] feasibility and the opportunity
[1:03:27] to save dollars for the rate
[1:03:27] over time for rate payers.
[1:03:32] But the biggest drivers I
[1:03:32] mentioned is the assumption
[1:03:33] around sd g long term growth
[1:03:36] rates and of course
[1:03:37] the potential savings and
[1:03:37] financial benefits are an
[1:03:38] estimate At this point there's
[1:03:41] no guarantees that these that
[1:03:42] these savings would would would
[1:03:45] come to fruition.
[1:03:46] The legislative and regulatory
[1:03:50] environment is indeed evolving
[1:03:50] and fluid.
[1:03:51] There are certainly costs
[1:03:52] issues around costs recovery
[1:03:54] cost reimbursement valuation
[1:03:55] approaches as well as
[1:03:56] the potential process all of
[1:03:59] which could impact
[1:04:00] the financial feasibility.
[1:04:01] However, overall the results
[1:04:05] are more refined and more more
[1:04:06] defined than significant
[1:04:09] unknowns and variables remain.
[1:04:10] That's the conclusion of our
[1:04:11] presentation.
[1:04:11] I'd be happy to answer any
[1:04:14] questions.
[1:04:15] >> All right.
[1:04:15] Thank you for the presentation.
[1:04:20] The fire marshal has asked for
[1:04:20] Those that are standing
[1:04:21] the back are actually empty
[1:04:21] seats out there.
[1:04:24] So if you could take a seat
[1:04:24] with make the fire marshal
[1:04:25] happy which makes me feel more
[1:04:28] comfortable.
[1:04:29] So thank you.
[1:04:33] So think again for
[1:04:33] the presentation.
[1:04:34] With that let's go to public
[1:04:38] comment.
[1:04:38] Thank you counsel Thank you.
[1:04:42] Council PRESIDENT This item
[1:04:42] received 15 comments in favor
[1:04:43] and two comments in opposition
[1:04:46] via our e comment form which
[1:04:47] has been distributed to
[1:04:47] the Council.
[1:04:49] We will begin with in-person
[1:04:54] public comment.
[1:04:55] Anthony Stackhouse Please come
[1:05:00] forward and and each speaker
[1:05:03] will receive one minute after
[1:05:08] Anthony Kevin Carroll, Matthew
[1:05:08] Fish and Christina marquez
[1:05:10] Please come sit in the front
[1:05:14] row.
[1:05:19] >> Please begin.
[1:05:20] My name is Anthony Stackhouse.
[1:05:20] I serve on the executive board
[1:05:24] for ibew for 65.
[1:05:25] I spent 14 years in the Army
[1:05:29] with combat deployments
[1:05:30] overseas and if you knew the I
[1:05:31] went through to get to where
[1:05:34] I'm at today you would not be
[1:05:35] so steadfast to put my job and
[1:05:35] my family's quality of life at
[1:05:38] risk.
[1:05:39] The people in this city don't
[1:05:40] trust you Don't give them more
[1:05:44] reasons.
[1:05:44] Be honest with themselves.
[1:05:45] You do not have the resources
[1:05:49] or knowledge to do this.
[1:05:49] Don't gamble with my job or
[1:05:50] the job of my union brothers
[1:05:53] and sisters because I promise
[1:05:54] you one thing we will not go
[1:05:55] down without a fight.
[1:05:58] I urge this Cancel this council
[1:05:59] to end this now Municipal
[1:06:06] association is union busting.
[1:06:07] Thank you for those comments.
[1:06:16] Kevin Carroll Good afternoon
[1:06:16] Council members My name is
[1:06:17] Kevin Caroline, executive
[1:06:18] Director of Tech San Diego
[1:06:21] representing technology
[1:06:21] companies across our region.
[1:06:22] Our members care about reliable
[1:06:26] service competitive rate and
[1:06:26] the infrastructure needed to
[1:06:27] support innovation,
[1:06:28] manufacturing and economic
[1:06:30] growth.
[1:06:31] Based on this presentation we
[1:06:32] have some concerns.
[1:06:32] The question is not whether
[1:06:35] minutes position is possible.
[1:06:36] The question is whether
[1:06:36] the risk caused are
[1:06:40] sufficiently understood before
[1:06:41] making a multibillion dollar
[1:06:41] decision that could impact
[1:06:42] businesses and residents for
[1:06:45] decades before moving forward.
[1:06:46] The city should have a high
[1:06:46] degree of confidence that all
[1:06:50] major cost liabilities,
[1:06:51] regulatory requirements and
[1:06:51] operational challenges are
[1:06:55] fully understood and reflected
[1:06:55] in the analysis.
[1:06:56] If manipulation ultimately
[1:06:59] proves to be the best path,
[1:07:00] the business case could
[1:07:00] withstand rigorous scrutiny if
[1:07:01] significant uncertainties
[1:07:04] remain as I think we saw in
[1:07:05] the presentation, those
[1:07:06] questions should be resolved
[1:07:09] before ratepayers and
[1:07:09] businesses assume the risk for
[1:07:10] San Diego's innovation economy.
[1:07:14] The goal is a reliable,
[1:07:14] resilient and affordable energy
[1:07:15] energy system that supports
[1:07:15] job.
[1:07:16] Thank you.
[1:07:17] Thank you for your comment and
[1:07:19] that does conclude your time.
[1:07:25] Matthew Fish Good afternoon
[1:07:25] Council members.
[1:07:29] My name is Matthew Fish and I'm
[1:07:30] the system business manager at
[1:07:31] ibew Local 465.
[1:07:34] I represent the workers
[1:07:35] industry Jeannie speaking
[1:07:38] against the Phase two study
[1:07:39] because it offers no job
[1:07:39] protections for my 700 gas
[1:07:43] construction work members
[1:07:43] workers will lose their jobs
[1:07:44] and the retiree medical and
[1:07:48] pensions will be affected.
[1:07:49] Please in this once and for all
[1:07:52] please invest the $9 million
[1:07:53] Billion elsewhere such as
[1:07:53] infrastructure backlog or
[1:07:57] housing for the homeless.
[1:07:58] Please do not gamble with our
[1:08:01] union jobs and if the city has
[1:08:06] bigger priorities like thank
[1:08:11] you and Christina marquez and
[1:08:12] while Christina speak incurred
[1:08:13] Mark Fuentes, Krystal Gomez,
[1:08:16] Monica Valdez and Cecilia
[1:08:17] marquez please approach
[1:08:20] the front row.
[1:08:21] Hi good afternoon.
[1:08:22] Christina marquez speaking on
[1:08:26] behalf of ibew Local 569 San
[1:08:26] Diego and Imperial County where
[1:08:30] the inside wireman We're here
[1:08:31] in solidarity with our union
[1:08:34] sisters and brothers of 465.
[1:08:38] The ibew stands against any
[1:08:39] effort to municipalities
[1:08:43] the power company the Nugent
[1:08:44] study says nothing about worker
[1:08:48] protections or job guarantee
[1:08:49] Leaving our ibew five 569
[1:08:53] members in limbo ibew members
[1:08:58] could lose jobs and benefits
[1:08:58] and the city is already
[1:08:59] billions behind in
[1:09:03] infrastructure spending
[1:09:03] infrastructure spending That
[1:09:04] puts our building trades
[1:09:08] members to work.
[1:09:09] >> Please do not wage or gamble
[1:09:13] with our jobs and our
[1:09:13] livelihood.
[1:09:14] Please end these efforts once
[1:09:14] for all.
[1:09:17] Thank you.
[1:09:18] Thank you.
[1:09:23] Mark wants Yeah Good afternoon.
[1:09:28] Council members.
[1:09:29] My name is Mark Fuentes.
[1:09:30] I'm a gas working foreman for
[1:09:30] our city.
[1:09:32] Jeannie a shop steward Would I
[1:09:36] be w Local 465 a proud U.S.
[1:09:37] Army veteran and a San Diego
[1:09:38] native.
[1:09:38] I served this country because I
[1:09:42] believe in protecting American
[1:09:43] families, American workers and
[1:09:43] communities.
[1:09:47] But when I look at this
[1:09:48] proposal I don't see any
[1:09:48] protections for me, my
[1:09:51] coworkers or our families.
[1:09:52] I don't see a future for my
[1:09:53] skilled gas workers who have
[1:09:56] dedicated their entire careers
[1:09:57] to serving this community.
[1:10:01] I also don't see protection for
[1:10:01] our communities especially when
[1:10:02] the cost of living is at an all
[1:10:06] time high.
[1:10:06] This proposal will create
[1:10:07] additional expenses for
[1:10:10] citizens and taxpayers who are
[1:10:11] already struggling to make ends
[1:10:11] meet.
[1:10:12] Please don't gamble with good
[1:10:15] union jobs without clear worker
[1:10:15] protections.
[1:10:16] I urge you not to move forward
[1:10:17] with this effort.
[1:10:24] Thank you Cristo Gomez.
[1:10:25] >> Good afternoon, Council
[1:10:25] members.
[1:10:30] My name is Cristo Gomez.
[1:10:31] I am shop steward of ibew 465
[1:10:31] and equipment operator c
[1:10:35] Jeannie I'm also a veteran of
[1:10:36] the United States Marine Corps.
[1:10:36] I operate equipment for gas and
[1:10:40] electric emergency And this
[1:10:40] feasibility study you only want
[1:10:41] to take over electric.
[1:10:45] What about gas jobs?
[1:10:45] What about equipment operators
[1:10:49] like myself and their families
[1:10:50] when we lose our jobs?
[1:10:54] What about our retirements?
[1:10:55] There are over 700 gas workers
[1:10:55] in our union.
[1:10:58] What about them?
[1:10:59] Where's our just transition And
[1:11:04] what about job mobility?
[1:11:04] Because in this proposal I
[1:11:05] don't see a future for us in
[1:11:09] our jobs Don't gamble with good
[1:11:10] union jobs And I see Jeannie
[1:11:13] with the city takeover I urge
[1:11:14] the City Council not to proceed
[1:11:14] any further with this effort
[1:11:18] forcing the city to take on
[1:11:18] billions in debt is wrong.
[1:11:19] We have bigger priorities.
[1:11:21] Thank you.
[1:11:22] Thank you.
[1:11:32] Monica Valdez Hello my name is
[1:11:32] Monica Relative.
[1:11:33] >> I'm a third generation ibew
[1:11:36] member and emergency dispatcher
[1:11:37] for sd Jeannie I'm a proud
[1:11:40] resident of District four.
[1:11:45] >> I am a very active and very
[1:11:45] active in my union and my
[1:11:46] community as part of local
[1:11:47] social service clubs.
[1:11:49] I'm here to express my absolute
[1:11:50] opposition to the Phase two
[1:11:54] study The proposal is costly,
[1:11:55] will gamble what puts our union
[1:11:59] contracts in the crosshairs?
[1:11:59] There are zero protections and
[1:12:03] zero guarantees for my members
[1:12:03] .
[1:12:04] There was zero current
[1:12:04] consideration for my gas
[1:12:05] members.
[1:12:08] Our gas people They are left
[1:12:09] behind in this proposal.
[1:12:12] Where is the just the just
[1:12:13] transition Please vote against
[1:12:13] this risky measure.
[1:12:14] Please don't gamble with our
[1:12:17] livelihoods.
[1:12:17] >> Please stop this once and
[1:12:22] for all.
[1:12:22] Thank you.
[1:12:27] Cecilia marquez Well Cecilia
[1:12:28] comes to the microphone could
[1:12:28] Laurie Lips?
[1:12:32] Lipson Noelia Carolyn Jason
[1:12:33] Poggio, Chris Kate and Amy
[1:12:37] Fossett please come to
[1:12:37] the front row.
[1:12:37] >> Please begin.
[1:12:41] Thank you.
[1:12:42] My name is Cecilia marquez.
[1:12:43] I'm born and raised in San
[1:12:46] Diego.
[1:12:47] I'm a single mother, a
[1:12:47] homeowner and a 24 year
[1:12:48] employee at San Diego Gas and
[1:12:50] Electric.
[1:12:51] I'm also a proud union officer
[1:12:55] and organizer at ibew Local
[1:12:55] 465.
[1:12:56] The city has been studying this
[1:12:56] for decades and it's time to
[1:13:00] stop.
[1:13:01] San Diego is a beautiful city
[1:13:02] but when I look around I see
[1:13:04] bigger priorities that we
[1:13:05] should be focusing on
[1:13:06] the homelessness, affordable
[1:13:09] housing, fixing our storm
[1:13:10] drains, infrastructure, public
[1:13:14] transit And in this study
[1:13:15] there's no guarantee that our
[1:13:16] jobs will carry over to a city
[1:13:16] ran utility.
[1:13:19] And even if they do, wages,
[1:13:20] salaries and benefits could
[1:13:21] change considerably.
[1:13:24] So I urge the city council to
[1:13:25] not proceed any further with
[1:13:25] this effort.
[1:13:29] Let's stop wasting our tax
[1:13:29] dollars.
[1:13:30] This is wrong and the city has
[1:13:30] much bigger priorities.
[1:13:34] Municipal association It is
[1:13:34] union busting.
[1:13:35] >> Thank you.
[1:13:36] Thank you.
[1:13:41] Laurie Lipman Hello Council
[1:13:46] members.
[1:13:47] I'm Laurie Litzman, a
[1:13:47] constituent of District three
[1:13:50] sd Jean e continues to put
[1:13:51] profits before people.
[1:13:54] For decades we've been we've
[1:13:55] built an energy system that
[1:13:59] transports power long distances
[1:14:00] ,losing power along the way
[1:14:01] while increasing costs and
[1:14:01] vulnerability.
[1:14:05] The Sunrise Powerlink destroyed
[1:14:05] habitat impact and cultural
[1:14:10] significance in significant
[1:14:10] lands and disrupt its disrupted
[1:14:14] communities.
[1:14:15] Today those transmission
[1:14:16] corridors are part of a system
[1:14:19] that routinely shuts down power
[1:14:19] to reduce wildfire risk.
[1:14:23] This is not smart energy.
[1:14:24] Sd g e customers pay among
[1:14:28] the highest rates in California
[1:14:29] while utility executives and
[1:14:33] shareholders continue to profit
[1:14:34] ,many residents are being
[1:14:34] forced to choose between
[1:14:35] necessities and keeping
[1:14:38] the lights on.
[1:14:38] Energy is an essential public
[1:14:39] service.
[1:14:43] It should be accountable to
[1:14:44] the people not corporate
[1:14:44] profit.
[1:14:45] Basically that does conclude
[1:14:45] your time.
[1:14:47] Thank you.
[1:14:57] Next speaker Noelia Collin Good
[1:14:57] afternoon.
[1:14:58] My name is Noelia Colon and I'm
[1:14:59] a welder.
[1:15:02] Jeannie I'm four and a proud
[1:15:02] member of ibew for six five.
[1:15:06] I'm proud to be the first woman
[1:15:06] welder in our union's history
[1:15:07] of over 100 years.
[1:15:10] This career has changed My life
[1:15:11] gave me opportunities financial
[1:15:11] independence and a future I
[1:15:14] never imagined for myself.
[1:15:15] I understand that people are
[1:15:16] frustrated with utility costs.
[1:15:20] Those concerns are valid and do
[1:15:20] deserve to be heard and
[1:15:21] discussed.
[1:15:21] We pay those too and we live
[1:15:24] here as well.
[1:15:25] But when I read the study I
[1:15:25] didn't see enough discussion
[1:15:26] about the workers who operate
[1:15:29] maintain and respond to
[1:15:29] emergencies on the system every
[1:15:30] day.
[1:15:30] I didn't see myself I didn't
[1:15:34] see my union brothers and
[1:15:34] sisters.
[1:15:35] I didn't see the young women
[1:15:36] who MAY 1st day follow the path
[1:15:36] that I did part that I did.
[1:15:39] I ask that you consider not
[1:15:40] only the infrastructure but
[1:15:40] the people behind it
[1:15:41] the workforce, the training,
[1:15:44] the experience, the careers,
[1:15:45] the culture, all the hustlers
[1:15:45] that serve that community for
[1:15:46] generations.
[1:15:49] I was born and raised here in
[1:15:49] San Diego.
[1:15:50] I love the city and that's
[1:15:53] exactly why I'm asking you to
[1:15:53] think carefully about
[1:15:54] the people who serve and
[1:15:55] sacrifice for it every day.
[1:15:57] >> Thank you.
[1:16:02] >> Jason Paglia, Jason Paglia.
[1:16:02] Okay.
[1:16:10] Moving on Chris Kate Good
[1:16:10] afternoon.
[1:16:11] Council PRESIDENT Members of
[1:16:12] the council Chris Kate on
[1:16:15] behalf of the San Diego
[1:16:16] Regional Chamber of Commerce.
[1:16:17] The Phase two study claims I
[1:16:20] mean just what utility would
[1:16:21] save San Diegans $130 billion?
[1:16:22] Let's be direct When something
[1:16:25] sounds too good to be true, it
[1:16:26] usually is giving false hope to
[1:16:29] San Diegans at a time when
[1:16:30] affordability is top of mind.
[1:16:31] The reality is that municipal
[1:16:34] ization is a dangerous, costly
[1:16:35] gamble.
[1:16:35] Startup costs alone could reach
[1:16:36] $9 billion a year or more.
[1:16:40] Money the city simply does not
[1:16:40] have nor residents can afford
[1:16:41] to take on as debt.
[1:16:44] This doesn't even account for
[1:16:44] massive annual operating costs
[1:16:45] wildfire insurance cost
[1:16:47] overruns or litigation that
[1:16:48] residents and businesses would
[1:16:53] be forced to bankroll.
[1:16:54] >> Pursuing a takeover of our
[1:16:54] energy infrastructure is a
[1:16:55] costly distraction that
[1:16:58] undermines our economic
[1:16:59] stability and risk our electric
[1:16:59] reliability.
[1:17:02] Past city councils have rightly
[1:17:03] rejected this path time and
[1:17:04] again because the risks
[1:17:04] continue to far outweigh any
[1:17:08] speculative benefits.
[1:17:08] We urge you to reject this
[1:17:09] proposal once and for all.
[1:17:11] Thank you.
[1:17:16] Amy Fossett.
[1:17:17] >> Good afternoon.
[1:17:18] Amy Fossett with the Building
[1:17:22] Industry Association of San
[1:17:22] Diego.
[1:17:23] I'm here today to talk more
[1:17:24] about from my personal and
[1:17:27] professional experience working
[1:17:27] here at the city.
[1:17:28] I was had the honor of working
[1:17:31] here over for over 20 years in
[1:17:31] almost every branch of
[1:17:32] government.
[1:17:35] The city is not structured
[1:17:36] organizationally nor does it
[1:17:36] have the expertise or
[1:17:40] the financial resources to take
[1:17:40] on such an endeavor.
[1:17:41] I too am concerned about energy
[1:17:41] rates.
[1:17:45] But the city of San Diego is
[1:17:45] not the solution to that
[1:17:46] problem.
[1:17:49] So I ask you to please move on
[1:17:50] from this endeavor and focus on
[1:17:51] the priorities and issues that
[1:17:52] you already have on your plate.
[1:17:57] Thank you.
[1:17:58] >> Thank you.
[1:17:58] Our next speaker is Marcy
[1:17:59] Weaver.
[1:18:02] While Marcy approaches
[1:18:03] the microphone, could Mark
[1:18:07] Kersey.
[1:18:11] Gene Wilder, Al Sanchez and
[1:18:12] Matt Kaczynski Please come sit
[1:18:16] in the front row.
[1:18:17] Good afternoon, Council members
[1:18:18] and city staff.
[1:18:21] My name is Marcy Weaver, ceo
[1:18:22] Controller MR. Chamber of
[1:18:22] Commerce.
[1:18:23] I'm here today on behalf of
[1:18:26] the businesses we represent to
[1:18:26] the throughout South County.
[1:18:27] Our business community depends
[1:18:31] on a reliable, affordable and
[1:18:32] predictable energy to operate,
[1:18:36] grow and create jobs in our
[1:18:36] region.
[1:18:37] While we appreciate the effort
[1:18:37] that has gone into
[1:18:40] the feasibility study, we are
[1:18:41] concerned that there is still
[1:18:42] not enough information
[1:18:45] available to fully understand
[1:18:46] financial, operational and long
[1:18:50] term impacts of the municipal
[1:18:51] politician accounts.
[1:18:54] We also want to acknowledge
[1:18:55] the significant wildfire
[1:18:59] mitigation work and ongoing
[1:19:00] investment that sgmd has made
[1:19:04] across the region.
[1:19:05] Chula Vista has had close calls
[1:19:08] with five wildfires.
[1:19:09] And this is critically
[1:19:09] important issue for our
[1:19:10] community.
[1:19:14] We have seen firsthand the work
[1:19:18] that fda has done to straighten
[1:19:19] grid build reliability and
[1:19:23] reduce fire risk being Thank
[1:19:24] you for your comments.
[1:19:24] That does conclude your time.
[1:19:28] Next speaker is Mark Kersey.
[1:19:28] Good afternoon council
[1:19:32] PRESIDENT And members of
[1:19:33] the council Mark Kersey
[1:19:33] representing San Diego
[1:19:34] Taxpayers.
[1:19:34] Having said on your side of
[1:19:37] the dais for eight years I'm
[1:19:38] going to ask you a question Is
[1:19:41] this really a headache that you
[1:19:42] guys want to take on?
[1:19:43] You guys already have a lot of
[1:19:44] headaches and several of them
[1:19:47] concern utilities.
[1:19:47] You get thousands of complaints
[1:19:48] about water rate increases.
[1:19:51] You get browbeat over the cost
[1:19:52] of pure water.
[1:19:53] You get criticized for failed
[1:19:56] stormwater channels and you
[1:19:57] take errors over trash fees
[1:19:59] particularly when third party
[1:20:00] estimates don't match reality
[1:20:01] Exactly like what could happen
[1:20:04] with this issue.
[1:20:05] Make no mistake running
[1:20:05] the power grid will only make
[1:20:09] these other headaches seem
[1:20:09] minor by comparison.
[1:20:10] The minute this ill fated
[1:20:14] eminent domain takeover closes
[1:20:15] ,people will expect you to
[1:20:15] immediately lower their
[1:20:16] electric rates.
[1:20:20] But you won't be able to
[1:20:20] because you have spent billions
[1:20:21] to buy the system and might
[1:20:24] actually need those rates to
[1:20:24] increase to pay off the massive
[1:20:25] bond debt and associated
[1:20:28] integration costs.
[1:20:29] You all have a tough job.
[1:20:30] You have enough headaches.
[1:20:30] Save yourself this one.
[1:20:33] Thank you.
[1:20:34] Thank you for your comments.
[1:20:38] Next speaker is Jay Wilder.
[1:20:38] If you're holding a sign,
[1:20:39] remember there are people
[1:20:42] behind you that might want to
[1:20:43] see our smiling faces up here.
[1:20:44] So use the back row if you want
[1:20:48] to hold the signs up so we can
[1:20:49] read them because you big fonts
[1:20:50] but have a courtesy to
[1:20:50] the people behind you.
[1:20:53] Thank you.
[1:20:53] Hello.
[1:20:54] Thank you for your time.
[1:20:55] My name is Jay Walder.
[1:20:58] I'm PRESIDENT Of ibew Local 465
[1:20:59] and alignment during
[1:20:59] the alignment.
[1:21:02] I'm also a marine Corps veteran
[1:21:03] husband father to two kids and
[1:21:06] I'm and I've defended
[1:21:07] the nation and our freedom.
[1:21:08] Today I am speaking to defend
[1:21:08] my union members and protect
[1:21:12] their jobs.
[1:21:13] Don't do this like I've trained
[1:21:14] for 20 plus years under ibew
[1:21:17] desk to learn this complex and
[1:21:17] ever changing system and I'm
[1:21:18] learning more every day.
[1:21:22] This is not something you can
[1:21:22] just learn overnight.
[1:21:23] It will take you decades and
[1:21:26] all the while my vw brothers
[1:21:27] and sisters and I will fight
[1:21:28] you every step of the way to
[1:21:31] protect union jobs.
[1:21:32] Let's not go to war.
[1:21:33] Let's find a way to work
[1:21:36] together to address real
[1:21:37] priorities in San Diego like
[1:21:38] homelessness especially veteran
[1:21:41] homelessness, mental health and
[1:21:42] addiction.
[1:21:42] This is where we should be
[1:21:44] spending valuable city
[1:21:44] resources.
[1:21:49] Thank you for your time.
[1:21:49] >> Thank you.
[1:21:54] Our next speaker is Al Sanchez
[1:21:54] .
[1:21:55] >> Thank you, council members.
[1:21:56] My name's Al Sanchez and I'm
[1:21:59] here on behalf of Local 89 and
[1:22:00] my business manager Bella
[1:22:00] Marcelo.
[1:22:04] We're here today to communicate
[1:22:04] our opposition to the efforts
[1:22:09] of bringing the work union
[1:22:09] contractors currently do
[1:22:10] in-house.
[1:22:13] We do not mean we do not
[1:22:14] benefit the city taxpayers or
[1:22:14] our employees.
[1:22:18] The studies have shown
[1:22:18] the studies have not proven you
[1:22:23] with real opportunities costs
[1:22:23] for what is needed to actually
[1:22:28] manage this reliably utility
[1:22:28] and keep it keep the lights on
[1:22:29] 24 hours.
[1:22:33] Nor does it address the costs
[1:22:33] needed for worker safety
[1:22:34] working in highly highly
[1:22:38] skilled working workforce,
[1:22:38] skilled workforce and
[1:22:39] competitive wages and benefits
[1:22:42] and construction expertise in
[1:22:43] building and maintaining
[1:22:44] the grid and pipelines in San
[1:22:45] Diego.
[1:22:51] We don't believe this business
[1:22:51] is served in the cities.
[1:22:56] >> Good interest of doing this
[1:22:57] .
[1:22:57] >> We asked the council to
[1:22:58] direct their time and resources
[1:22:59] in delivering the city
[1:22:59] services.
[1:23:04] >> Thank you Mayor Because
[1:23:05] Greensky while Matt approaches
[1:23:05] the microphone could make a
[1:23:09] erroneous Britney says Rihanna
[1:23:13] barrel Bill Powers and
[1:23:13] allegedly Audra please come to
[1:23:18] the front row.
[1:23:18] Please begin.
[1:23:19] Good afternoon council members.
[1:23:24] My name is Max Stransky I'm
[1:23:24] speaking We have today of acp
[1:23:25] Local 127 the dedicated city
[1:23:28] workers who keeps an you
[1:23:29] running as you know local 127
[1:23:29] represents the hardworking
[1:23:33] employees of our maintenance
[1:23:34] labor skilled trades and
[1:23:34] equipment operators and so
[1:23:38] forth.
[1:23:38] Our members are on the front
[1:23:39] frontlines serving the city
[1:23:40] every single day and their
[1:23:42] stability is our top priority.
[1:23:43] It is our concern that that's
[1:23:47] stability and the fiscal health
[1:23:47] of our city that local 127 must
[1:23:51] express its continued objection
[1:23:51] regarding public power.
[1:23:52] We have met with the proponents
[1:23:56] to express the same concerns to
[1:23:57] them.
[1:23:57] While we understand the desire
[1:23:58] to explore alternative models,
[1:24:01] we believe this current
[1:24:02] proposal presents too many
[1:24:02] unresolved risks.
[1:24:05] One lack of consensus This
[1:24:06] initiative has come before
[1:24:09] the council multiple times and
[1:24:10] has struggled to find viable
[1:24:11] path forward Demonstrating
[1:24:11] the community and leadership
[1:24:15] remained deeply divided on this
[1:24:15] issue.
[1:24:19] Workforce uncertainty The Phase
[1:24:20] two report does not provide
[1:24:20] the concrete assurances.
[1:24:21] >> Thank you.
[1:24:21] That does conclude your time.
[1:24:27] Mark o'Brien is Good afternoon
[1:24:27] Council My name is Mark o'Brien
[1:24:28] is political director of
[1:24:31] the San Diego and Imperial
[1:24:31] County Labor Council.
[1:24:32] We're proud to represent over
[1:24:33] 100 unions and 200,000 working
[1:24:36] families including our brothers
[1:24:37] and sisters in ibew 46 five and
[1:24:38] we're here standing with them
[1:24:41] in efforts to oppose them in
[1:24:42] its opposition to this power
[1:24:42] company.
[1:24:43] We know the struggles of our
[1:24:45] members to make it in San Diego
[1:24:46] right now and we know that
[1:24:47] consumers are paying the same
[1:24:47] thing.
[1:24:48] But we also know that right now
[1:24:51] our city resources are
[1:24:51] stretched very, very thin and
[1:24:52] now is not the time to risk
[1:24:53] those limited resources on
[1:24:56] the utility take.
[1:24:56] Workers could lose their
[1:24:57] pensions and retirement and
[1:25:00] the hard fought benefits.
[1:25:01] We stand with the hundreds of
[1:25:02] workers that could lose these
[1:25:02] benefits.
[1:25:03] Please don't gamble with their
[1:25:03] jobs.
[1:25:04] We have bigger priorities and
[1:25:04] we thank you for your support.
[1:25:07] >> Thank you.
[1:25:07] Thank you.
[1:25:12] Britney says hi.
[1:25:13] Good afternoon council members.
[1:25:13] Thank you so much for the time
[1:25:17] to comment on this today.
[1:25:18] Like many others here, we have
[1:25:18] serious concerns with this
[1:25:22] study in particular it doesn't
[1:25:22] answer the critical question of
[1:25:26] how much will it actually cost
[1:25:27] to purchase the assets of
[1:25:27] the utility.
[1:25:32] First off, the report gives you
[1:25:33] a range of between 2 and 2 and
[1:25:35] a half and $7.5 billion a huge
[1:25:36] range.
[1:25:39] The cost to just purchase
[1:25:40] the assets is $9.3 billion.
[1:25:44] The study also omits some key
[1:25:45] costs including the cost to
[1:25:46] make our remaining customers
[1:25:49] whole.
[1:25:50] If the city were to leave
[1:25:51] the surrounding cities and
[1:25:54] unincorporated county would see
[1:25:54] an increase in their rates.
[1:25:55] There is precedent that says
[1:25:59] that the city would need to
[1:26:00] make sure that that does not
[1:26:01] happen so there would be an
[1:26:04] exit fee of billions of dollars
[1:26:04] .
[1:26:05] Finally the city this study
[1:26:06] also isn't including
[1:26:09] the significant wildfire risk
[1:26:10] that is part of San Diego.
[1:26:10] It doesn't include
[1:26:11] the insurance costs or
[1:26:14] mitigation.
[1:26:15] Thank you very much.
[1:26:15] Thank you.
[1:26:21] Next speaker is Brianna Barrow.
[1:26:22] >> Good afternoon, council
[1:26:22] members.
[1:26:24] My name is Brianna Berman and
[1:26:25] local business owner and I also
[1:26:26] run a local nonprofit.
[1:26:27] So public power MAY be a good
[1:26:29] idea and it MAY also be a
[1:26:30] costly idea.
[1:26:30] Both things can be true.
[1:26:31] My concern is not about
[1:26:34] protecting one institution over
[1:26:34] the other.
[1:26:35] My concern is about
[1:26:35] workability, accountability and
[1:26:36] integrity.
[1:26:39] If the city is going to pursue
[1:26:39] a public power model,
[1:26:40] the process must be
[1:26:40] transparent.
[1:26:43] The numbers must be complete
[1:26:43] and the public must understand
[1:26:44] exactly what they're being
[1:26:48] asked to carry as a ratepayer I
[1:26:49] want relief as a taxpayer.
[1:26:49] I want responsibility as a
[1:26:50] contractor.
[1:26:53] I want fair opportunity as a
[1:26:53] community centered business
[1:26:54] owner.
[1:26:54] I want solutions that did not
[1:26:58] leave the people with the least
[1:26:58] margin carrying the most risk
[1:26:59] at this time without a clear
[1:27:03] and definitive understanding of
[1:27:04] the full cost, the risk and
[1:27:05] the impact on city communities
[1:27:07] I cannot support moving forward
[1:27:08] with the municipal ization and
[1:27:08] I ask that you do not either.
[1:27:12] Thank you.
[1:27:13] Thank you.
[1:27:13] Bill Powers While Bill
[1:27:18] approaches the microphone could
[1:27:19] I have Mike Miller okay all
[1:27:22] the Monday Neil Winter John
[1:27:26] Mattis and Barbara Pinto
[1:27:27] approach the front row please
[1:27:31] begin Bill Powers Board Member,
[1:27:32] Public Power San Diego I'll
[1:27:35] start with Labor.
[1:27:36] The veteran utility workers
[1:27:36] will be key to the new
[1:27:41] utility's credibility Labor
[1:27:42] does need to have a seat on
[1:27:42] the utilities governing board.
[1:27:43] Labor also needs to be a part
[1:27:46] of the blue ribbon panel that
[1:27:47] selects the critical initial
[1:27:48] governing board with the die
[1:27:51] gets cast.
[1:27:52] New Jersey's first public power
[1:27:54] study for the city was in 2020.
[1:27:55] That study only looked at
[1:27:55] distribution a distribution
[1:27:59] only utility low voltage.
[1:28:00] It did not look at transmission
[1:28:03] and distribution phase one and
[1:28:04] phase two that only at&t at&t
[1:28:08] utility would be completely
[1:28:09] contained within the city's
[1:28:09] boundaries.
[1:28:10] Crossing jurisdictional
[1:28:13] boundaries would trigger Lasko
[1:28:14] review that would occur six
[1:28:14] years to the implementation
[1:28:17] schedule That would be a
[1:28:18] momentum killer for public
[1:28:18] power.
[1:28:22] In San Diego we obtained a
[1:28:23] Phase two financial model
[1:28:23] through a Public Records Act
[1:28:24] request New Dennis set
[1:28:28] the model up so you can click a
[1:28:28] button and look at a
[1:28:29] distribution only structure.
[1:28:30] >> There is no more work to do
[1:28:33] to assess distribution.
[1:28:33] >> That is the way to go.
[1:28:34] Thank you.
[1:28:36] Thank you.
[1:28:46] Next speakers allegedly Audra
[1:28:51] Yeah so I mean as dg any roms
[1:28:52] Peter to pay Paul but so do you
[1:28:53] guys and so that's what's
[1:28:57] concerning about this going
[1:28:58] into your hands especially when
[1:28:58] you talk about savings and that
[1:29:02] not really being feasible of
[1:29:03] course not because sd g and e
[1:29:07] is aggressively opposed to you
[1:29:08] guys doing this So this will
[1:29:09] end up in litigation So it will
[1:29:12] cost the people more than
[1:29:13] the billions of dollars that
[1:29:17] you are you know, talking about
[1:29:18] here And I mean with the storm
[1:29:18] infrastructure needing $5
[1:29:19] billion, it's like how many
[1:29:23] billions of dollars do you guys
[1:29:24] need in order to provide
[1:29:24] the things?
[1:29:28] But again, you can't be trusted
[1:29:29] with this type of thing when
[1:29:29] you are not good stewards of
[1:29:33] our money and when this is
[1:29:34] going to be something that is
[1:29:34] San Diego community power is
[1:29:38] engaged with when they're
[1:29:38] talking about keeping data
[1:29:39] centers on and having
[1:29:43] the public in the community not
[1:29:44] have power during that time
[1:29:45] that is extremely egregious and
[1:29:45] people need to pay attention to
[1:29:49] that because there's meetings
[1:29:50] that are talking about it.
[1:29:50] >> Thank you.
[1:29:54] Next speaker is Mike Miller.
[1:30:01] >> Good afternoon counsel.
[1:30:02] The more we learn about Jionni
[1:30:02] the more appalled I am at
[1:30:05] the amount of corporate greed
[1:30:06] that goes on that organization.
[1:30:07] Their average profit for
[1:30:10] the last four years is over
[1:30:10] $800 million and their parent
[1:30:16] company also spends nearly $300
[1:30:16] million annually in campaign
[1:30:17] donations and lobbying and
[1:30:19] counting on $2,000 to Donald
[1:30:24] Trump's inauguration last year
[1:30:24] .
[1:30:25] Obviously there are a lot of
[1:30:26] questions and things that need
[1:30:26] to be figured out before this
[1:30:30] goes into place and it's
[1:30:30] obviously an informational item
[1:30:31] and I'm grateful you're taking
[1:30:35] the time to consider it and I
[1:30:36] hope that you consider to look
[1:30:41] at it more because personally I
[1:30:42] just can't imagine what I would
[1:30:42] do with an excess amount of
[1:30:45] even $1 million every year And
[1:30:46] I'm sure there's a better way
[1:30:46] that we can find to use that
[1:30:47] money to help the people of San
[1:30:48] Diego.
[1:30:55] >> Thank you.
[1:30:55] Thank you.
[1:30:56] Gail via Marty Well Gail comes
[1:30:59] to the microphone.
[1:31:00] You do have time ceded to you
[1:31:00] by Neil Winter.
[1:31:05] Neil can you raise your hand?
[1:31:05] Okay.
[1:31:06] Thank you.
[1:31:06] You will have two minutes.
[1:31:07] Thank you.
[1:31:08] My name is Gail b one time a
[1:31:11] proud resident of District nine
[1:31:12] and I'm also the chair of
[1:31:13] the board of directors of
[1:31:13] Public Power San Diego.
[1:31:16] And I'd like to make an
[1:31:17] important distinction here.
[1:31:17] There's a difference between a
[1:31:22] nonprofit public utility versus
[1:31:22] a for profit investor owned
[1:31:23] utility.
[1:31:28] And the definition of municipal
[1:31:29] as a nonprofit public utility
[1:31:33] does not have to be quote run
[1:31:34] by the city.
[1:31:35] So you can all kind of public
[1:31:39] thank GOD because there are
[1:31:39] challenges but there are cities
[1:31:44] this has been something that
[1:31:45] has been done for 100 years.
[1:31:45] All right.
[1:31:50] And it's been done in over 40
[1:31:51] cities in California including
[1:31:56] Sacramento, by the way they do
[1:31:57] it And on the average they have
[1:32:02] half the rates we do And better
[1:32:03] reliability.
[1:32:03] So I think that's one key
[1:32:04] point.
[1:32:07] I just like to leave you with
[1:32:08] the other point is our union
[1:32:09] brothers and sisters, they
[1:32:13] deserve to have certainly their
[1:32:14] benefits, their compensation,
[1:32:14] their seniority, all of that
[1:32:15] protected.
[1:32:15] I don't think that was really
[1:32:20] part of the study.
[1:32:21] I mean I don't think it was
[1:32:22] meant to be part of the study
[1:32:26] but that's certainly part of
[1:32:26] any conversation I have
[1:32:27] personally been involved with.
[1:32:32] They talked about the possible
[1:32:32] future of a nonprofit utility.
[1:32:37] In fact, public utilities have
[1:32:37] 80 to 90% unionization rate
[1:32:38] whereas private utilities have
[1:32:43] I guess what, a 30%
[1:32:43] unionization rate.
[1:32:44] All right.
[1:32:49] So there's a really big
[1:32:49] difference.
[1:32:50] So the unions would benefit And
[1:32:51] I know that you know you have a
[1:32:55] contract with sd g and that
[1:32:55] precludes certain conversations
[1:33:01] but you would benefit union
[1:33:01] members would benefit both in
[1:33:02] terms of their families and
[1:33:03] their immediate costs and in
[1:33:07] terms of their status.
[1:33:08] No one is looking to change any
[1:33:08] of that.
[1:33:09] Thank you very much.
[1:33:12] Thank you.
[1:33:13] John Madison.
[1:33:13] Next, while John approaches
[1:33:18] the microphone, I would ask
[1:33:19] that Patricia Mendoza
[1:33:25] the ferryman, Adriana Cizik and
[1:33:32] Kevin Machado please approach
[1:33:32] the front row please me.
[1:33:33] >> John matters here.
[1:33:36] I'm here on the reality of
[1:33:37] the crisis facing the city of
[1:33:38] San Diego.
[1:33:43] Proudly you took the first step
[1:33:43] in a path forward.
[1:33:48] The crisis is one quarter of
[1:33:48] the people here in this city
[1:33:49] can't afford their bills.
[1:33:55] Wants to month they can't pay.
[1:33:55] If you ask the question why
[1:34:00] can't they?
[1:34:00] Is it because they have
[1:34:01] the highest rates in the state?
[1:34:06] Is it because they want another
[1:34:06] 8% rate increase?
[1:34:07] That's the reality.
[1:34:13] We have a powerful quote.
[1:34:14] We have a plan.
[1:34:15] We have a plan that saves your
[1:34:18] constituents tens of thousands
[1:34:18] of dollars.
[1:34:24] Help us get out of this crisis
[1:34:25] of unaffordability of a key
[1:34:26] component of our life here in
[1:34:26] San Diego.
[1:34:31] And that is our outrageous g&a
[1:34:31] rate.
[1:34:32] >> Thank you.
[1:34:34] Thank you.
[1:34:42] >> Barbara Pinto.
[1:34:43] Barbara, you do have time ceded
[1:34:43] to you by Isidora Lopez Magali.
[1:34:48] Can you raise your hand please?
[1:34:48] Thank you.
[1:34:49] And an okay.
[1:34:49] Ana Thank you.
[1:34:53] You have three minutes.
[1:34:53] Thank you.
[1:34:54] Good afternoon.
[1:34:54] My name is Barbara Pinto and
[1:35:00] I'm a resident of San Diego,
[1:35:01] the District 11 Loganathan and
[1:35:01] a member of eighth.
[1:35:06] I have been a resident since
[1:35:06] the 40s in San Diego and
[1:35:10] selling gas and electric has
[1:35:11] been our only utility company
[1:35:12] So it is a monopoly on
[1:35:17] utilities provided since then
[1:35:17] and before Sandy Again we are
[1:35:18] paying the highest prices for
[1:35:22] homes rent, gas, food and
[1:35:27] utilities more almost than
[1:35:28] anyone in the nation.
[1:35:29] Our utility provider dictates
[1:35:34] cost increases services and
[1:35:35] sets no limit on their profits.
[1:35:40] Last year they made a whopping
[1:35:41] $563 million in profits and
[1:35:46] that figure was roughly one
[1:35:47] third lower than it was
[1:35:47] the previous year.
[1:35:48] I'm a senior citizen living on
[1:35:52] a fixed income of Social
[1:35:53] Security and a modest
[1:35:53] retirement.
[1:35:58] I went back to work around 2018
[1:35:59] to keep up with the cost of
[1:36:00] living and inflation.
[1:36:05] i lost my job due to covid.
[1:36:11] In 2021 I prioritize my rent
[1:36:12] and I got behind in my water my
[1:36:12] utility.
[1:36:16] My current utility bill is over
[1:36:16] $3,500.
[1:36:17] I enlisted in a debt
[1:36:21] forgiveness program and said
[1:36:22] they would work with me to
[1:36:22] forgive part of my debt.
[1:36:26] I agreed to pay $111 a month
[1:36:26] for 12 consecutive months but
[1:36:31] that cost changes according to
[1:36:32] my everyday usage.
[1:36:37] I wasn't told that the average
[1:36:38] monthly cost now is about $140
[1:36:38] a month.
[1:36:43] This is difficult when you're
[1:36:43] on a fixed income and you're
[1:36:44] trying to do a budget.
[1:36:49] Why is there no limit on what
[1:36:49] these companies can make in
[1:36:50] profits?
[1:36:54] Even with my return to work I
[1:36:55] am struggling.
[1:36:55] We need services offered at
[1:37:01] more affordable rates.
[1:37:01] We need more competitive
[1:37:02] companies putting people before
[1:37:03] profits.
[1:37:09] Thank you.
[1:37:09] >> Thank you.
[1:37:10] Next speaker is Patricia
[1:37:16] Mendoza.
[1:37:17] >> Hi, my name is Patrick and
[1:37:22] I'm a member of Ace Energy as a
[1:37:22] basic necessity that every
[1:37:23] family depends on.
[1:37:29] We need it to cook continue to
[1:37:29] cut meals, keep the lights on
[1:37:30] after dark, wash close to our
[1:37:31] children and have clean clothes
[1:37:31] to wear.
[1:37:34] Yet these high utility rates
[1:37:35] make everyday activities a
[1:37:36] source of stress, often forcing
[1:37:40] families to make difficult
[1:37:40] choices about the bills to pay
[1:37:41] and which bills to put off.
[1:37:46] It is especially troubling now
[1:37:46] that summer's here it's going
[1:37:47] to be more hot.
[1:37:47] People can't afford air
[1:37:48] conditioner.
[1:37:48] It's going to get colder
[1:37:49] weather outside.
[1:37:55] People can't afford adequate
[1:37:56] heating.
[1:37:56] But right now I also want to
[1:37:57] acknowledge all our brothers
[1:38:02] and sisters here in our union
[1:38:02] brothers and sisters here I
[1:38:03] heard it and I had another
[1:38:04] speech written But I want to
[1:38:08] hear you guys to I want to put
[1:38:08] their voice out there too
[1:38:09] because we need public power.
[1:38:09] We really do.
[1:38:14] But it concerns on your
[1:38:15] concerns about job security.
[1:38:15] We do need public power and we
[1:38:19] need it not at the expense of
[1:38:20] other working class people,
[1:38:21] other working class jobs.
[1:38:21] Thank you.
[1:38:27] That does conclude your time.
[1:38:27] >> We can work together.
[1:38:28] We can Women I'm working.
[1:38:32] We can work together.
[1:38:33] We can work together.
[1:38:33] We're still talking about So
[1:38:38] they make their man work
[1:38:39] together to make this
[1:38:39] transition good.
[1:38:40] Okay.
[1:38:43] All all right.
[1:38:44] >> She set the tone.
[1:38:44] We're not going to do that
[1:38:45] again.
[1:38:45] Okay?
[1:38:49] We're going to keep this
[1:38:50] simple.
[1:38:51] You guys have been fantastic.
[1:38:51] So I'm passionate on both
[1:38:51] sides.
[1:38:55] I've been clear and unambiguous
[1:38:56] but let's have a good civil
[1:39:01] dialog Now you have three
[1:39:02] people sitting your time When I
[1:39:02] call your name please raise
[1:39:03] your hand to confirm your year
[1:39:07] And above all is honor.
[1:39:13] Thank you Gary Carter.
[1:39:13] Gary Clark.
[1:39:14] Corey of Corey.
[1:39:14] Sorry.
[1:39:19] Thank you.
[1:39:20] Oscar Gomez Junior.
[1:39:20] Thank you.
[1:39:21] Your four minutes please begin.
[1:39:24] Good afternoon, Council members
[1:39:25] and city staff.
[1:39:26] My name is Nate Berryman,
[1:39:26] business manager of
[1:39:27] the International Brotherhood
[1:39:30] of Electrical Workers Local
[1:39:30] Union for 65 I represent 2900
[1:39:31] union utility workers here in
[1:39:36] San Diego and several counties.
[1:39:37] And look, I know why we're
[1:39:37] really here.
[1:39:38] People are not happy with
[1:39:42] energy.
[1:39:43] They're not happy with their
[1:39:43] rates or their skyrocketing
[1:39:44] profits.
[1:39:44] People are mad at the never
[1:39:48] ending corporate profits that
[1:39:49] are pulled from our pockets and
[1:39:49] funneled to separate
[1:39:53] shareholders And to be 100%
[1:39:53] honest my members are meant to
[1:39:54] Our members have more in common
[1:39:55] with you in this room than
[1:39:59] utility CEOs or executives.
[1:40:00] Working class people are
[1:40:00] struggling.
[1:40:01] They're struggling to get by
[1:40:04] and something needs to be done
[1:40:05] to provide support.
[1:40:06] But I promise you brothers and
[1:40:06] sisters, this ain't it.
[1:40:11] Our union and our members share
[1:40:11] a mutual interest in the city's
[1:40:12] success and the success of our
[1:40:13] communities success of our
[1:40:17] mayor, our council and
[1:40:18] the utility who's delivering
[1:40:18] these essential services to San
[1:40:22] Diego's municipal division is
[1:40:23] bad for everyone.
[1:40:23] It will not solve for
[1:40:24] affordability.
[1:40:24] It will destroy our union
[1:40:29] contracts and force layoffs of
[1:40:29] union workers.
[1:40:30] Each phase of the new study
[1:40:31] continues to diminish or ignore
[1:40:35] addressing worker protections
[1:40:36] and safety the fire risk and
[1:40:36] liability the city would assume
[1:40:41] under urban exploitation and
[1:40:41] the occurred that the city
[1:40:42] would force to be take on with
[1:40:43] this effort High voltage
[1:40:43] infrastructure demand
[1:40:47] significant investment and
[1:40:48] the operating continue
[1:40:48] The operating costs continue to
[1:40:49] be significantly
[1:40:49] underestimated.
[1:40:53] There's no guarantee that
[1:40:53] the infrastructure the city
[1:40:54] purchases will be maintained
[1:40:55] sufficiently To keep my members
[1:40:59] safe I was in these chambers
[1:41:00] just weeks ago when you were
[1:41:00] debating closing public
[1:41:03] bathrooms in order to close a
[1:41:04] $175 million budget deficit.
[1:41:05] What happens when you have a
[1:41:09] budget deficit but now you run
[1:41:10] the power company.
[1:41:11] You can't just shut down a
[1:41:11] substation.
[1:41:12] You can't just turn the lights
[1:41:16] off to save money or limit
[1:41:16] the hours that you provide.
[1:41:17] Electric service like the grid
[1:41:18] is a public library You can't
[1:41:22] balance the budget by robbing
[1:41:23] resources from grid maintenance
[1:41:23] or pole replacement.
[1:41:24] If you do that you might have
[1:41:28] mass outages, blackouts and
[1:41:28] wildfires.
[1:41:29] So where's the real cost
[1:41:29] associated with the fire risk
[1:41:30] and liability?
[1:41:33] Where's the real numbers on
[1:41:34] the billions dollars of debt
[1:41:35] the city and our taxpayers will
[1:41:39] carry for decades?
[1:41:40] Each phase of the Nugent study
[1:41:41] has not provided you or our
[1:41:41] taxpayers with an accurate
[1:41:45] picture of that risk of
[1:41:46] the cost of the liability and
[1:41:46] the risk the city will be
[1:41:51] undertaking to municipal lies.
[1:41:56] It's a lot It's $9 billion, $9
[1:41:57] billion at a time where
[1:41:57] the city is laying off workers
[1:41:58] when the city is closing
[1:42:02] bathrooms, the city is
[1:42:02] defunding the bomb squad and
[1:42:03] relying on donations to keep
[1:42:04] your arts programs alive.
[1:42:07] You just cut $7 million from
[1:42:08] your own Climate Action Fund.
[1:42:12] You don't have the money You
[1:42:13] don't have the resources and
[1:42:14] you don't have the expertise.
[1:42:14] So we're asking you to please
[1:42:19] not do this.
[1:42:20] But I will end with this If
[1:42:20] city genie doesn't offer
[1:42:25] immediate rate relief to our
[1:42:26] communities most at need, we
[1:42:31] will be back here having
[1:42:31] the same presentation with
[1:42:32] the same advocacy and the same
[1:42:33] level of frustration
[1:42:37] The utility affordability
[1:42:38] crisis isn't going away until
[1:42:38] we sit down with honesty and
[1:42:43] empathy for our communities
[1:42:43] that are struggling.
[1:42:44] I fear the cycle will continue
[1:42:45] and the ibew stands ready and
[1:42:47] willing to have that
[1:42:48] conversation.
[1:42:55] >> Thank you very much.
[1:42:55] Thank you and Speaker lady And
[1:42:56] if you think you could approach
[1:43:00] the microphone, you have
[1:43:01] several speakers seating time
[1:43:01] to you.
[1:43:06] Matthew Pendergrast, thank you
[1:43:06] Randall and Driver thank you.
[1:43:19] As an uncommon husband no, no.
[1:43:19] Okay.
[1:43:20] You will have a total of three
[1:43:20] minutes then.
[1:43:24] Okay.
[1:43:25] Thank you so much for having
[1:43:25] me.
[1:43:25] I'm DR. Adrian Cusick.
[1:43:26] I live in District three.
[1:43:30] I served in the us Peace Corps
[1:43:31] and I'm a member of cfa which
[1:43:31] is a California faculty
[1:43:32] association.
[1:43:33] I teach environmental science
[1:43:36] and sustainability sdsu My
[1:43:37] students are bright, they're
[1:43:37] motivated, they're innovative.
[1:43:42] They get out there and gain
[1:43:42] work experience.
[1:43:43] Unfortunately they're learning
[1:43:44] about the injustices that are
[1:43:48] deeply embedded in our systems
[1:43:48] and structures.
[1:43:49] The sad reality that a utility
[1:43:50] company is a monopoly
[1:43:55] extracting wealth from
[1:43:55] the community to transfer it to
[1:43:56] its already wealthy CEOs and
[1:44:01] shareholders is an example of
[1:44:01] environmental and social
[1:44:02] injustices that we've been
[1:44:06] forced to live with This system
[1:44:07] under the investor owned
[1:44:07] utility makes life harder for
[1:44:08] the average than Diegan and it
[1:44:12] stifles innovation and
[1:44:12] progress.
[1:44:13] But there's a better way.
[1:44:17] The Phase two public power
[1:44:17] study clearly demonstrates that
[1:44:18] it's financially, technically
[1:44:19] and operationally feasible to
[1:44:23] transition to a nonprofit
[1:44:24] publicly owned utility.
[1:44:24] The study focused on different
[1:44:29] variations on one specific
[1:44:30] scenario for acquiring
[1:44:30] the grid.
[1:44:31] It demonstrated that public
[1:44:35] power will work in San Diego.
[1:44:36] And it also demonstrated that
[1:44:36] public power will be good for
[1:44:37] San Diegans not only
[1:44:42] financially but public power
[1:44:42] would turn decision making over
[1:44:43] to us the people who live here
[1:44:44] and are impacted by local
[1:44:47] energy decisions not
[1:44:48] shareholders who probably
[1:44:48] couldn't care less about
[1:44:49] the struggles of everyday San
[1:44:54] Diego's public power have been
[1:44:54] successful in other cities So
[1:44:55] it makes sense It would be
[1:44:59] successful here where we pay
[1:45:00] the highest electricity rates
[1:45:01] in the continental United
[1:45:01] States.
[1:45:02] It's important to remember that
[1:45:05] the phase two study is a
[1:45:06] baseline and it shows that it's
[1:45:07] possible We don't need to have
[1:45:11] every single technical detail
[1:45:12] worked out right now.
[1:45:13] But what we do need to do is
[1:45:13] commit to making action to
[1:45:17] making it happen.
[1:45:18] As local owners of the grid we
[1:45:18] can determine what works best
[1:45:19] for us.
[1:45:23] We can ensure that Labor
[1:45:24] remains whole and has agreement
[1:45:25] agreements to ensure that
[1:45:25] people operating the system are
[1:45:29] involved in the decisions that
[1:45:30] impact them.
[1:45:30] We can tailor the scale of
[1:45:31] the infrastructure and we can
[1:45:35] explore different different
[1:45:36] governance models.
[1:45:36] We can trade the status quo for
[1:45:37] low energy costs and local
[1:45:41] control.
[1:45:42] Imagine what that would do for
[1:45:43] our city.
[1:45:43] Lower energy costs are key to
[1:45:44] economic growth Cutting
[1:45:47] emissions, reducing
[1:45:48] inequalities and spurring
[1:45:48] innovation.
[1:45:49] So once we're out from under
[1:45:54] the thumb of Sempra we could be
[1:45:54] a model of community
[1:45:55] resilience.
[1:45:55] We could have virtual power
[1:45:59] plants bi directional charging,
[1:46:00] microgrids, agile and proactive
[1:46:00] technology to mitigate growing
[1:46:05] climate risks.
[1:46:06] We could decide if and where
[1:46:07] data centers enter our city.
[1:46:11] Ultimately we have the power
[1:46:12] now to commit to transitioning
[1:46:13] to public power.
[1:46:13] And when we do, every aspect of
[1:46:17] that transition will be under
[1:46:18] our local control.
[1:46:18] And like my students, we have
[1:46:23] the imagination, the creativity
[1:46:24] to create something really
[1:46:24] wonderful that can serve us
[1:46:25] all.
[1:46:25] >> Thank you for your comments.
[1:46:29] That does conclude your time.
[1:46:30] Next speaker is Kevin Machado
[1:46:31] or Kevin approaches
[1:46:31] the microphone.
[1:46:35] I would ask Will Smith, Kevin
[1:46:43] Zavala Rachel Kiss Lane Range
[1:46:44] shot Sharon.
[1:46:49] Sorry if I said that in part
[1:46:50] Troutman too.
[1:46:50] Please come to the front row.
[1:46:51] Kevin please begin.
[1:46:55] Hello, my name is Kevin and I'm
[1:46:55] a worker here in San Diego.
[1:46:56] Working family The San Diego
[1:47:00] are tired of the cost of living
[1:47:00] going up as the union has
[1:47:01] consistently raised rates in
[1:47:02] the past decade as the union
[1:47:06] has raised rates on average 7%
[1:47:06] per year.
[1:47:07] They're taking $1 billion from
[1:47:07] us every year and doing nothing
[1:47:11] for our communities.
[1:47:12] That money could go to San
[1:47:13] Diego schools and the library
[1:47:14] San Diego workers and San Diego
[1:47:17] infrastructure as the union
[1:47:18] wants more more money for their
[1:47:19] owners And Wall Street at
[1:47:20] the city's profits this quarter
[1:47:23] is $290 million and they're
[1:47:24] likely to break a million in
[1:47:24] profit this year.
[1:47:25] And regardless of that, they
[1:47:29] still are proposing another
[1:47:30] $280 million more every year.
[1:47:31] If we don't act now, another
[1:47:36] decade will pass and San Diego
[1:47:36] will still be struggling with
[1:47:37] the cost of living.
[1:47:37] We have the opportunity to
[1:47:41] change that now la Power will
[1:47:41] lower the cost of electricity
[1:47:42] for generations.
[1:47:43] The feasibility study will will
[1:47:43] save money.
[1:47:48] It will work here.
[1:47:48] It's worked everywhere else
[1:47:49] They've tried it.
[1:47:50] The minimum the minimum
[1:47:50] position in Sacramento has been
[1:47:54] complete success.
[1:47:55] They pay half of what we're
[1:47:55] paying the council to be brave
[1:47:56] and act And I thank you for
[1:47:56] your time.
[1:47:58] Thank you.
[1:48:04] Well Smith you do have indoor
[1:48:04] seating your time.
[1:48:05] Andrew, could you raise your
[1:48:06] hand, please?
[1:48:06] Thank you.
[1:48:07] You'll have two minutes.
[1:48:10] Good afternoon, Council.
[1:48:11] My name is Will and I live in
[1:48:11] District five.
[1:48:12] Over the last few years I have
[1:48:15] moved around San Diego several
[1:48:16] times.
[1:48:16] Every neighborhood has been
[1:48:17] different but in each one of
[1:48:18] them life keeps getting more
[1:48:21] expensive.
[1:48:22] Like many people in my
[1:48:22] generation I already worry
[1:48:23] about the cost of rent,
[1:48:27] groceries, gas and health care.
[1:48:28] But when bills used to go up no
[1:48:29] matter what I do.
[1:48:29] Electricity.
[1:48:33] Recently I was fortunate enough
[1:48:33] to move somewhere with solar
[1:48:34] panels.
[1:48:34] I thought I would finally get
[1:48:35] some relief.
[1:48:39] Instead I watched as Jeannie
[1:48:40] continued to make decisions
[1:48:40] that made it harder for
[1:48:41] ordinary people to lower their
[1:48:44] bills.
[1:48:45] It feels like no matter what we
[1:48:45] do the system is designed so
[1:48:49] that the shareholders win.
[1:48:50] And working families pay
[1:48:50] the price.
[1:48:51] We don't want to keep having to
[1:48:52] choose between keeping our
[1:48:55] lights on and putting food on
[1:48:55] the table.
[1:48:56] Beyond affordability, I've also
[1:48:57] seen the consequences of
[1:49:01] failure to properly maintain
[1:49:01] its infrastructure.
[1:49:02] Wildfires fueled by neglected
[1:49:03] infrastructure threaten our
[1:49:06] communities, our environment
[1:49:07] and the places that make San
[1:49:07] Diego special.
[1:49:08] I want future generations to be
[1:49:11] able to enjoy our parks, open
[1:49:12] spaces and beaches without
[1:49:12] being under the constant threat
[1:49:17] of very preventable disasters.
[1:49:18] That is why I am here today in
[1:49:19] support of public power.
[1:49:20] I want a utility that answers
[1:49:23] to the people of San Diego not
[1:49:23] investors.
[1:49:24] I want money we spend on
[1:49:24] electricity to stay in our
[1:49:25] community and be invested in
[1:49:28] reliability, clean energy and
[1:49:29] affordability.
[1:49:29] Most of all, I want future
[1:49:30] generations of San Diego owners
[1:49:34] to be able to afford to live in
[1:49:34] the city they call home.
[1:49:35] Council These issues affect
[1:49:39] real people, real families and
[1:49:39] real voters.
[1:49:40] Today you have a choice Stand
[1:49:41] with San Diego and struggling
[1:49:45] to afford an essential service
[1:49:45] or stand with a monopoly that
[1:49:46] continues to raise rates while
[1:49:50] posting record profits off
[1:49:51] the backs of working class
[1:49:51] families.
[1:49:52] The voters of the city will
[1:49:52] remember that choice.
[1:49:56] I urge you to move forward with
[1:49:56] sd Public Power.
[1:49:57] >> Thank you.
[1:49:57] Thank you.
[1:50:01] Kevin Zavala.
[1:50:02] >> You have time ceded to you
[1:50:06] by Robert Freedman Could you
[1:50:07] raise your hand please?
[1:50:07] >> Thank you.
[1:50:08] You'll have two minutes.
[1:50:08] Good afternoon.
[1:50:11] My name is Kevin Zavala, Marine
[1:50:12] Corps veteran and a District
[1:50:12] four constituent.
[1:50:16] Over the last decade, genius
[1:50:17] driven electricity rates up by
[1:50:18] more than 80% far outpacing
[1:50:21] inflation and leaving San Diego
[1:50:21] residents with the same with
[1:50:22] some of the highest utility
[1:50:23] bills in the nation.
[1:50:26] We're told these increases are
[1:50:26] unavoidable but what are
[1:50:27] the facts?
[1:50:31] After the devastating 2007 San
[1:50:32] Diego wildfires, the us Supreme
[1:50:33] Court ruled that the genie
[1:50:35] could not pass $379 million in
[1:50:35] fire related litigation costs
[1:50:36] to ratepayers because
[1:50:40] the damage was caused by
[1:50:40] the utility's poor maintained
[1:50:41] equipment.
[1:50:41] Shareholders, not customers
[1:50:44] were required to bear those
[1:50:44] costs.
[1:50:45] However, Genie later exploited
[1:50:46] a legal loophole while barred
[1:50:50] from charging customers for
[1:50:50] past damages.
[1:50:51] The company successfully
[1:50:51] shifted 100% of its ongoing
[1:50:55] wildfire mitigation and
[1:50:55] infrastructure hardening costs
[1:50:56] onto ratepayers.
[1:50:57] As a result, customers are
[1:51:00] paying billions to repair and
[1:51:01] upgrade infrastructure that
[1:51:01] the utility neglected for
[1:51:02] years.
[1:51:05] This is the consequence of a
[1:51:05] private monopoly accountable to
[1:51:06] investors rather than
[1:51:07] the public it serves.
[1:51:10] In response, public power San
[1:51:11] Diego is working to establish a
[1:51:12] publicly owned utility that
[1:51:15] will prioritize affordability,
[1:51:16] transparency and local control.
[1:51:17] Public records show sgi has
[1:51:20] spent millions on lobbying and
[1:51:20] political influence efforts to
[1:51:21] block public power proposals
[1:51:22] and protect its monopoly.
[1:51:25] The choice is clear continue
[1:51:26] accepting more rate hikes or
[1:51:28] support a public power future
[1:51:29] that puts the people first.
[1:51:34] >> Thank you Rachel Kiss.
[1:51:35] You have time ceded to you by
[1:51:38] Dale Holmberg.
[1:51:39] Thank you.
[1:51:39] Good afternoon.
[1:51:40] My name is Rachel Kiss.
[1:51:43] I'm a San Diego resident, a
[1:51:44] mother of three young children,
[1:51:45] a homeowner and a small
[1:51:48] business owner.
[1:51:49] Like many families, we've made
[1:51:49] sacrifices over the last few
[1:51:50] years as the cost of living
[1:51:53] continues to rise.
[1:51:54] We budget carefully.
[1:51:54] We compare prices.
[1:51:57] We make difficult decisions
[1:51:58] about where our money goes.
[1:51:59] What's frustrating is that
[1:51:59] while families are expected to
[1:52:03] tighten their belts as Jeannie
[1:52:04] continues to come back asking
[1:52:07] for more, how much is enough?
[1:52:08] Electricity is not a luxury.
[1:52:09] It's a necessity.
[1:52:12] Families need to keep food cold
[1:52:13] home safe and children
[1:52:13] comfortable.
[1:52:16] Small businesses need to
[1:52:17] survive.
[1:52:17] Yet we're paying some of
[1:52:18] the highest energy rates in
[1:52:21] the country with especially
[1:52:22] concerning is that more and
[1:52:22] more of these costs are being
[1:52:23] shifted into fixed charges.
[1:52:27] Whether someone lives in a
[1:52:27] small apartment and edu or a
[1:52:31] large home whether they can
[1:52:31] serve energy or not, they're
[1:52:32] being asked to pay more.
[1:52:33] Families are being told to use
[1:52:36] less energy while
[1:52:36] simultaneously being charged
[1:52:37] speeds that they cannot
[1:52:37] control.
[1:52:40] That undermines both
[1:52:41] affordability and conservation.
[1:52:41] Today isn't just about a
[1:52:46] feasibility study.
[1:52:46] It's about accountability.
[1:52:47] It's about exploring whether
[1:52:48] there's a better path forward
[1:52:51] that puts residents before
[1:52:51] profits.
[1:52:52] I'm not here because I have all
[1:52:52] the answers.
[1:52:55] I'm here because I believe
[1:52:56] the people of San Diego deserve
[1:52:56] leaders who are willing to ask
[1:52:57] hard questions and seriously
[1:53:01] explore alternatives.
[1:53:02] When sd Jenny asks for another
[1:53:05] increase it's a line item on a
[1:53:05] spreadsheet.
[1:53:06] For families it's groceries,
[1:53:10] kids activities, savings and a
[1:53:10] peace of mind.
[1:53:11] Those costs are real and we're
[1:53:12] feeling them.
[1:53:15] Please seriously evaluate every
[1:53:16] option available to bring
[1:53:17] affordability, transparency and
[1:53:20] accountability back to our
[1:53:20] energy system.
[1:53:21] And please remember that behind
[1:53:22] every rate increase is a family
[1:53:25] trying to make their budget
[1:53:25] work.
[1:53:26] Thank you for your time.
[1:53:26] Thank you.
[1:53:30] Lane Sharman.
[1:53:31] When you have time ceded to you
[1:53:35] by Katherine Harrison and
[1:53:36] Katherine, raise your hand.
[1:53:36] Thank you.
[1:53:43] You'll have two minutes.
[1:53:44] Good afternoon, counsel.
[1:53:44] My name is Lane Sharman.
[1:53:47] I'm a fifth generation
[1:53:48] Californian and I'm also
[1:53:52] the proud founder and initiator
[1:53:53] of community choice aggregation
[1:53:53] in San Diego along with Bill
[1:53:57] Powers.
[1:53:58] We have public power in San
[1:53:58] Diego, don't we?
[1:54:02] We've had it since the Smart
[1:54:03] Energy Alliance was founded by
[1:54:07] Lisa hepner, your colleague.
[1:54:07] She did that because it was
[1:54:11] good for the city of Solana
[1:54:12] Beach.
[1:54:16] That tiny little city up north
[1:54:16] .
[1:54:17] >> And why was it good for it?
[1:54:18] Because San Diego gas and
[1:54:21] electric then as now was taking
[1:54:22] advantage of every single
[1:54:26] ratepayer then and now.
[1:54:31] And I am asking you to please
[1:54:31] look at the big picture here.
[1:54:36] Your legacy, your future, your
[1:54:37] ability to lead and do what's
[1:54:41] good for this city is before
[1:54:41] you.
[1:54:45] And even though there is so
[1:54:46] much opposition, much of it is
[1:54:50] just fear.
[1:54:51] It is.
[1:54:55] And we all fear is the only
[1:54:56] thing that we have to fear
[1:54:56] right now.
[1:54:57] This is going to be great for
[1:55:00] unions.
[1:55:00] It's going to be great for
[1:55:01] the people of San Diego.
[1:55:05] It's going to be good for our
[1:55:05] future.
[1:55:09] So I just beg you to do what
[1:55:10] Lisa Huebner did in 2016.
[1:55:15] She wrote why it was good and
[1:55:15] she published it.
[1:55:19] Each one of you could do that
[1:55:23] and it would be an amazing way
[1:55:24] of clearly stating why this is
[1:55:25] good for San Diego because you
[1:55:29] will work through all of
[1:55:29] the issues including the fears
[1:55:34] and I just want to thank each
[1:55:34] and every one of you who takes
[1:55:38] that action and and dedicates
[1:55:39] themselves to the future of San
[1:55:39] Diego.
[1:55:43] Thank you.
[1:55:43] >> Thank you.
[1:55:47] Next speaker is Pak Troutman.
[1:55:48] While you approach
[1:55:49] the microphone I would ask that
[1:55:53] James Ferguson Diego Sandoval,
[1:55:54] Tyler Andre, Isaiah Glass and
[1:55:58] Allison Miller please approach
[1:55:59] the front row park.
[1:56:02] You have five people sitting
[1:56:02] time to you.
[1:56:07] Angela Haynes Thank you.
[1:56:07] Doris Wynn.
[1:56:11] Thank you.
[1:56:12] Michael Brack Me.
[1:56:12] Thank you.
[1:56:17] Janet o'Dea Thank you.
[1:56:17] Five minutes please.
[1:56:20] Please begin.
[1:56:21] Thank you.
[1:56:22] Good afternoon, Council members
[1:56:26] and Council PRESIDENT My name
[1:56:26] is Park Troutman.
[1:56:27] I am with San Diego 350 Well, I
[1:56:30] want to talk about is San Diego
[1:56:31] Gas Electric general rate case
[1:56:35] that was filed last week.
[1:56:36] The general rate case is a huge
[1:56:37] filing in which investor owned
[1:56:40] utility tries to convince
[1:56:41] the California Public Utilities
[1:56:45] Commission that they should be
[1:56:46] allowed to raise their rates
[1:56:49] over a four year block for 2028
[1:56:53] the first year of the 40 years
[1:56:53] of the rate increase request.
[1:56:58] As the genie asked permission
[1:56:58] to raise the residential
[1:57:02] electricity rates by about $14
[1:57:03] per month which is a little bit
[1:57:06] more than 7% and
[1:57:07] the residential gas rates by a
[1:57:11] little bit less than 850 per
[1:57:11] month which is about a 13%
[1:57:12] increase.
[1:57:16] The California Public Advocacy
[1:57:21] Office tracks acg genies rates
[1:57:21] versus inflation.
[1:57:22] They've done this since 2014.
[1:57:26] The cumulative impact of their
[1:57:27] increase in their rates more
[1:57:27] than inflation is that they
[1:57:31] have increased about triple
[1:57:31] inflation.
[1:57:36] This request for the general
[1:57:37] rate increase or the general
[1:57:37] rate case which is really
[1:57:41] the window into how they're
[1:57:41] thinking about the future is
[1:57:45] actually a little bit more than
[1:57:46] their average request for
[1:57:49] the since 2014 and they make a
[1:57:53] similar request in 2029 and in
[1:57:57] 2030 and 2031 they only request
[1:57:57] an increase of 5.5%.
[1:58:02] And keep in mind that these
[1:58:03] rate increases that are in
[1:58:07] the general rate case are
[1:58:08] merely the baseline of what
[1:58:11] they're asking for.
[1:58:12] Increasingly investor owned
[1:58:16] utilities are asking for rate
[1:58:16] increases outside of
[1:58:21] the general rate case so we can
[1:58:22] expect that they will keep
[1:58:26] continue to ask for more And
[1:58:26] these are through their
[1:58:27] balancing in memorandum
[1:58:28] accounts where they spend money
[1:58:30] and then say oh we already
[1:58:31] spent this money, could you get
[1:58:35] reimbursed by paying or
[1:58:36] charging rate payers more?
[1:58:40] So this let the audacity and
[1:58:40] compulsiveness of this sink in
[1:58:44] public anger at investor owned
[1:58:45] utilities has begun to affect
[1:58:49] the outcomes of elections
[1:58:50] nationwide and sd Genie which
[1:58:54] in a J.D. Power study excuse me
[1:58:59] a brand appeal of utilities in
[1:58:59] the Western us that they did
[1:59:02] last year sc Genie was 28 out
[1:59:03] of 30th near the absolute
[1:59:07] bottom because of their high
[1:59:08] rates They are so out of touch
[1:59:12] they are going to continue They
[1:59:13] are continuing to ask for more.
[1:59:17] The general rate case request
[1:59:21] is higher than the 4% that was
[1:59:22] the basis for the consultant's
[1:59:26] study and that was the main
[1:59:27] assumption for the phase two
[1:59:30] feasibility study There are
[1:59:31] consultants are constrained by
[1:59:32] the need to be reasonable as
[1:59:35] the genie apparently does not
[1:59:36] feel the same.
[1:59:40] This means that when we look at
[1:59:40] the impacts of the cumulative
[1:59:43] benefits I believe that Slide
[1:59:44] 11 we should be concentrating
[1:59:48] on the highest bar showing
[1:59:53] the highest possible savings
[1:59:54] because that is the most
[1:59:54] likely.
[1:59:58] We know this because Star Genie
[1:59:59] is telling us so they are going
[2:00:03] to continue to ask So what does
[2:00:03] this mean going forward?
[2:00:08] I was we are not going to if we
[2:00:09] know they're going to continue
[2:00:10] to ask for more rate increases.
[2:00:14] We're not going to be having
[2:00:14] the same conversation.
[2:00:15] We're not always coming back
[2:00:17] having the exact encounter.
[2:00:18] It's going to be worse.
[2:00:19] People will be more frustrated,
[2:00:22] Rates are going to be higher.
[2:00:23] We cannot sit our hands We
[2:00:23] cannot say wait to see what
[2:00:27] happens in San Francisco And
[2:00:27] these are not options.
[2:00:31] We need to keep moving forward.
[2:00:32] Star Genie The company will not
[2:00:34] stop itself.
[2:00:39] >> Thank you.
[2:00:40] Thank you.
[2:00:40] Our next speaker is James
[2:00:41] Ferguson.
[2:00:45] James, you have Deborah
[2:00:46] Winthrop or any time to you
[2:00:46] Deborah, can you raise your
[2:00:49] hand?
[2:00:49] >> Thank you.
[2:00:50] Two minutes.
[2:00:54] Thank you.
[2:00:55] My name is James and I live in
[2:00:58] North Park and I have been an
[2:00:59] advocate for climate issues and
[2:01:03] our energy systems for my
[2:01:03] entire adult life which is
[2:01:04] actually pretty long.
[2:01:07] I went to college in 1975 and
[2:01:08] that's where I took
[2:01:08] environmental science.
[2:01:12] I'm a retired naval officer and
[2:01:13] anesthesia provider and this
[2:01:17] has been a passion of mine for
[2:01:17] that long.
[2:01:18] I'm now Senate liaison for
[2:01:22] Citizens Climate Lobby and I
[2:01:22] must tell you that we're
[2:01:23] working on transmission issues
[2:01:27] this year with the federal
[2:01:27] government And I tell you that
[2:01:28] dependency model of early
[2:01:32] monopoly electronic electrical
[2:01:33] systems no longer serves as
[2:01:36] well as electrical demand will
[2:01:37] double or triple in the next 20
[2:01:38] years because of data centers
[2:01:41] electrification, reshoring of
[2:01:46] business etc. Favoring big
[2:01:47] distant production and long
[2:01:51] wires with cpu c guaranteeing
[2:01:51] double digit profits over
[2:01:55] whatever costs are incurred And
[2:01:56] it doesn't even have to try to
[2:02:00] economize.
[2:02:01] So they are incentivized to
[2:02:06] spend as much as possible
[2:02:06] because that's a percent above
[2:02:10] the cost that they incur while
[2:02:14] lack of profit incentives for
[2:02:15] upgrades and maintenance of
[2:02:15] the not very lucrative
[2:02:16] capacities of the local
[2:02:19] distribution grid is a failure
[2:02:20] to accommodate local generation
[2:02:24] and storage which we could do.
[2:02:25] We have a lot of available
[2:02:29] storage opportunities and in
[2:02:29] solar opportunities.
[2:02:30] But an sd Genie technician came
[2:02:34] to my house to explain to me
[2:02:35] why my 200 hour panel is crying
[2:02:38] and it's because he just said
[2:02:39] Well there's a lot of solar
[2:02:39] systems around here These old
[2:02:42] circuits just can't handle it.
[2:02:43] So we pay the highest rates in
[2:02:48] America in the continental
[2:02:48] states two times California
[2:02:49] average with three times
[2:02:51] the national average.
[2:02:52] Thank you.
[2:02:56] Thank you.
[2:02:57] Next speaker is D.A. Diego
[2:03:03] Sandoval.
[2:03:04] Do you have time to buy Ben
[2:03:04] Owens?
[2:03:05] Ben, could you raise your hand?
[2:03:05] Thank you.
[2:03:07] And Pamela Isaacs, thank you.
[2:03:07] You have three minutes.
[2:03:08] Please begin.
[2:03:11] Thank you.
[2:03:12] Good afternoon, City Council.
[2:03:12] My name is Diego Sandoval.
[2:03:15] I live in District eight and
[2:03:16] I'm here today to ask you to
[2:03:16] choose public power over
[2:03:20] the greed and power hungry
[2:03:21] genie as De Genie wants you to
[2:03:21] think that there is serious
[2:03:25] about what's doing best for our
[2:03:25] environment and people when in
[2:03:26] reality they're just doing
[2:03:30] what's best for their pockets
[2:03:31] so much so that they change
[2:03:35] the g in their logo to Green.
[2:03:35] Now it's green.
[2:03:36] How nice is that?
[2:03:37] And truth as the genie supports
[2:03:39] fighting climate change insofar
[2:03:40] as they can profit from it and
[2:03:40] households across San Diego are
[2:03:44] feeling that every month for a
[2:03:45] company committed to net zero
[2:03:46] they're still incredibly
[2:03:49] enthusiastic about fossil
[2:03:50] fuels.
[2:03:50] Ac Genie is owned by Sempra
[2:03:51] which has invested heavily in
[2:03:54] the transportation of what they
[2:03:55] euphemistically call natural
[2:03:55] gas.
[2:03:59] Natural gas is the most highly
[2:03:59] potent greenhouse gas methane.
[2:04:00] To quote the CHAIRMAN And ceo
[2:04:04] of Sempra from last month, they
[2:04:04] are very bullish on
[2:04:08] the liquefied natural gas trade
[2:04:09] long term This is not what you
[2:04:12] say when you're serious about
[2:04:13] net zero or what's doing best
[2:04:14] for the people or the climate
[2:04:17] that they depend on for a
[2:04:18] livable future.
[2:04:18] This corporations mentality of
[2:04:22] grasping what every book they
[2:04:23] can be seen is can be seen in
[2:04:27] their filing for their general
[2:04:27] rate case.
[2:04:28] They claim that they need to
[2:04:31] raise their rates for wildfire
[2:04:32] mitigation in the case of
[2:04:32] ongoing climate changes.
[2:04:36] Yet on the very same page they
[2:04:37] also say they want to raise
[2:04:37] rates to support
[2:04:38] the construction of new gas
[2:04:41] facilities.
[2:04:42] Does that make sense?
[2:04:43] They want us to pay more so
[2:04:43] that they can continue
[2:04:47] contributing to climate change
[2:04:47] then use climate change as
[2:04:51] justification for us paying
[2:04:51] more as the genie does not care
[2:04:52] about people or the environment
[2:04:56] they only care about profit not
[2:04:56] progress.
[2:04:57] San Diego can do better.
[2:05:01] This is why I asked for you to
[2:05:02] choose public power today but
[2:05:03] also to work with our union
[2:05:05] brothers and sisters to ensure
[2:05:06] that they are considered during
[2:05:07] this transition.
[2:05:07] To echo the opinions of a
[2:05:10] previous speaker we can do this
[2:05:11] together.
[2:05:11] >> Thank you.
[2:05:11] Yeah.
[2:05:15] Thank you.
[2:05:16] Next speaker is Tyler Andre.
[2:05:21] Tyler, you have several
[2:05:21] individuals setting your time.
[2:05:22] Cory Quite Lander.
[2:05:26] Thank you, Jackie Smith.
[2:05:31] Thank you, Fred And here.
[2:05:35] Thank you.
[2:05:35] Rhea Coleman.
[2:05:35] Thank you.
[2:05:36] You will have five minutes.
[2:05:39] Please begin.
[2:05:40] >> Good afternoon, Counsel.
[2:05:41] My name is Dre.
[2:05:41] I am a resident of District
[2:05:44] one, a Navy veteran and a small
[2:05:45] business owner as well as a
[2:05:48] proud volunteer with San Diego
[2:05:49] 350 and Public Power San Diego.
[2:05:53] >> Now why are so many people
[2:05:53] motivated to be here on a
[2:05:54] Monday afternoon?
[2:05:58] >> And why does Jeannie solicit
[2:05:58] curses from every San Diego who
[2:05:59] hears that name?
[2:06:02] It's because every single one
[2:06:03] of us has had that moment.
[2:06:04] The one where you open
[2:06:04] the billing up or the bill
[2:06:08] lands on the counter and you
[2:06:08] just stare at it.
[2:06:09] Maybe you reread the number
[2:06:13] like it'll change.
[2:06:13] It won't.
[2:06:14] In case you're wondering in
[2:06:15] fact don't look at it too many
[2:06:15] times because I'm going to
[2:06:17] charge you extra for that.
[2:06:18] >> And what's maddening is that
[2:06:21] we live in one of the sunniest
[2:06:22] city in the country.
[2:06:22] Solar is now the cheapest
[2:06:26] electricity on earth and we are
[2:06:26] still paying some of
[2:06:27] the highest electric rates in
[2:06:30] the continental United States.
[2:06:31] This is a broken arrangement
[2:06:32] created by an investor owned
[2:06:32] corporation.
[2:06:35] In fact here are the numbers.
[2:06:36] >> Straight from the cpu See?
[2:06:39] Since 2014 sd genius
[2:06:42] residential rates have gone up
[2:06:43] about 117% Inflation over that
[2:06:47] same period 39%.
[2:06:48] Sd Genius rates have grown
[2:06:52] three times faster than
[2:06:52] the cost of everything three
[2:06:53] times.
[2:06:57] Right now nearly one in five sd
[2:06:58] Genie households are behind on
[2:06:58] their bill.
[2:07:02] >> Owning an average owing an
[2:07:06] average of over $500.
[2:07:06] Those are our neighbors.
[2:07:07] That's multiple people in this
[2:07:11] room right now.
[2:07:11] >> And this doesn't stop at our
[2:07:12] electric bill.
[2:07:15] Local businesses pay these same
[2:07:16] rates and that cost gets built
[2:07:17] into the price of your coffee,
[2:07:20] your haircut, your kid's
[2:07:20] daycare.
[2:07:21] High electric rates are a
[2:07:21] hidden cost on every
[2:07:25] transaction in the city.
[2:07:26] >> Our water rates mtf also
[2:07:27] facing a deficit has to pay
[2:07:30] them too.
[2:07:31] So that's why we're here
[2:07:31] because we're tired of
[2:07:34] subsidizing a system that costs
[2:07:35] us three times more than it
[2:07:36] should in the one city in
[2:07:39] America with the least excuse
[2:07:39] for it.
[2:07:40] But here's what I'd like you to
[2:07:44] think about.
[2:07:44] >> This is the business model
[2:07:45] working exactly as designed.
[2:07:49] Sd Jeannie is a government
[2:07:49] granted monopoly.
[2:07:50] You can't shop around for your
[2:07:53] power and under California's
[2:07:54] regulatory system it doesn't
[2:07:54] make money by giving you
[2:07:58] cheaper or better power.
[2:07:59] It makes money by spending more
[2:07:59] on infrastructure because
[2:08:03] the state guarantees its
[2:08:04] shareholders a return of nearly
[2:08:07] 10% on every dollar that it
[2:08:08] spends.
[2:08:09] Not on outcomes but on
[2:08:09] spending.
[2:08:15] Sd Jeannie boasts up to $1
[2:08:15] billion in annual profits and
[2:08:15] that money comes from
[2:08:15] somewhere.
[2:08:17] It came from us.
[2:08:18] Yet they'll shut your power
[2:08:18] off.
[2:08:22] It is also why sd Jeannie
[2:08:23] doesn't celebrate when your
[2:08:24] neighbor puts solar panels on
[2:08:26] the roof.
[2:08:27] Solar that we the ratepayers
[2:08:31] pay for Personally under this
[2:08:31] business model your rooftop
[2:08:32] solar is a loss of revenue to
[2:08:36] them not a win for the grid.
[2:08:37] >> And sd Genies parent company
[2:08:38] Sempra is one of the largest
[2:08:41] builders of fossil fuel export
[2:08:41] infrastructure in the country.
[2:08:42] >> So while we MAY be doing our
[2:08:46] best to go green, the company
[2:08:46] taking our power bill is in
[2:08:50] other corners of its empire
[2:08:51] building out more fossil fuel
[2:08:51] infrastructure.
[2:08:55] And they protect this
[2:08:55] arrangement the same way every
[2:08:56] entrenched monopoly does with
[2:08:59] money in politics.
[2:09:00] Sempra spendnds over $1 million a
[2:09:01] year lobbying Sacramento and
[2:09:05] the very commission that sets
[2:09:05] its profit margin.
[2:09:06] >> Take a look at where Sempra
[2:09:09] Nest is.
[2:09:10] You need to donate their money.
[2:09:10] Our money.
[2:09:11] This isn't just about a high
[2:09:14] bill.
[2:09:15] It's about a monopoly that
[2:09:16] profits by spending more
[2:09:19] vitally clean energy on our
[2:09:20] roofs and spends our money
[2:09:21] lobbying the people meant to
[2:09:24] hold them accountable.
[2:09:25] This is unacceptable.
[2:09:29] This is nonpartisan and this is
[2:09:29] wrong.
[2:09:30] >> I want to end with a
[2:09:30] question to the room and I
[2:09:31] think you will actually might
[2:09:35] know the answer.
[2:09:35] How do you spell corporate
[2:09:36] greed?
[2:09:41] Sd Jeannie, thank you Counsel.
[2:09:46] >> Thank you for your comments
[2:09:46] .
[2:09:47] Our next speaker is Isaiah
[2:09:47] Glass of Isaiah.
[2:09:51] You have several people sending
[2:09:52] you time so I just need to
[2:09:52] confirm they're here.
[2:09:56] Robin Gill Burt thank you.
[2:10:00] Mary Fifield Thank you.
[2:10:01] Andrew Lund Steve Thank you.
[2:10:05] So today Lopez Eugenio thank
[2:10:06] you And Mike meaning All right,
[2:10:06] Thank you.
[2:10:10] You will have six minutes.
[2:10:10] >> Please begin.
[2:10:11] Good afternoon, Council
[2:10:11] members.
[2:10:15] My name is Isaiah Glasser and
[2:10:16] I'm the program director for
[2:10:16] Public Power San Diego.
[2:10:17] I want to take a moment to
[2:10:20] thank all the volunteers who
[2:10:20] came out to support the Phase
[2:10:21] two public power study and
[2:10:22] public power in general.
[2:10:24] I really do appreciate it from
[2:10:25] the bottom of my heart.
[2:10:29] This new gen study shows even
[2:10:29] in the most conservative
[2:10:30] modeling that public power is
[2:10:34] good for San Diego and it's
[2:10:34] good for San Diego is the key
[2:10:35] number that determines this
[2:10:36] amount of savings is
[2:10:38] the revenue growth rate.
[2:10:39] New Gen assumed 4% and admits
[2:10:42] that 6% is more realistic and
[2:10:43] it's a total slap in the face
[2:10:47] that just a couple of days ago
[2:10:47] you filed for an 8% increase in
[2:10:48] 2028.
[2:10:51] The second you take this model
[2:10:52] it's the same You take this
[2:10:53] model and use a revenue growth
[2:10:53] rate that's anywhere near
[2:10:56] reality.
[2:10:56] The savings are absolutely mind
[2:10:57] blowing and it seems to me that
[2:11:01] we're actually pretty close to
[2:11:01] consensus on that which makes
[2:11:02] common sense because when you
[2:11:05] cut Wall Street profit out of
[2:11:06] our electricity bills you will
[2:11:07] see savings.
[2:11:11] Many of us here today knew this
[2:11:11] back in 2020 during
[2:11:12] the franchise agreement fight
[2:11:14] and again in 2024 during
[2:11:14] the power San Diego campaign.
[2:11:17] Public power was the right
[2:11:17] choice in 2020.
[2:11:18] It was the right choice in
[2:11:18] 2024.
[2:11:22] It's the right choice in 2026
[2:11:23] and it will be the right choice
[2:11:23] in 2023.
[2:11:27] The question is not if public
[2:11:27] power saves money.
[2:11:28] The question is when will we
[2:11:32] have a council that is brave
[2:11:33] enough to take on the corporate
[2:11:37] oligarchs that any all of us
[2:11:37] here today are being ripped off
[2:11:42] by our stage name including
[2:11:42] the city of San Diego.
[2:11:43] The city pays an sd Jeanie Bill
[2:11:46] the water department pays
[2:11:47] the nasty G.I. Bill.
[2:11:47] The sewer department pays a
[2:11:50] nasty G.I. Bill Electric rates
[2:11:51] are a cost inflator on
[2:11:52] the entire city budget.
[2:11:55] Public power would help
[2:11:56] the city's structural deficit,
[2:11:56] t harm it.
[2:12:00] We really truly are the council
[2:12:01] and the people of San Diego on
[2:12:04] the same side against sd Jenny
[2:12:04] .
[2:12:05] And moving forward we
[2:12:09] absolutely must protect ibew
[2:12:10] guarantee their fought hard,
[2:12:11] hard fought labor contracts and
[2:12:14] hard earned pension funds.
[2:12:15] And that is absolutely doable
[2:12:15] with public power.
[2:12:17] Now I've got a message for
[2:12:22] the bosses at e!
[2:12:23] >> The public power movement is
[2:12:23] only growing.
[2:12:27] Your days are numbered.
[2:12:32] Of pillaging our community.
[2:12:37] Your for profit monopoly will
[2:12:37] end.
[2:12:38] >> Thank you.
[2:12:38] >> Thank you.
[2:12:40] Alison Miller Well Alison comes
[2:12:40] to the microphone I will ask
[2:12:41] Blaire Beekman, Jessica
[2:12:47] Anderson Nicole Lilly Yeah and
[2:12:47] Dori Bruggeman to please come
[2:12:50] to the front room.
[2:12:50] >> Alison, please begin.
[2:12:51] Hello Council I am a resident
[2:12:54] of District three and I am here
[2:12:55] today because a quarter of your
[2:12:59] voters and my neighbors are in
[2:13:00] debt to corporate greed as any
[2:13:04] at any given time.
[2:13:05] >> They're on track to make $1
[2:13:05] billion in profits this year
[2:13:08] yet they continue to ask for
[2:13:09] more during the same time
[2:13:10] period they've been
[2:13:10] participating in union busting.
[2:13:13] They've been turning to private
[2:13:14] contractors that hurt our union
[2:13:18] neighbors.
[2:13:19] We the supporters of the public
[2:13:20] power movement are committed to
[2:13:20] working with our union
[2:13:22] neighbors as we implement
[2:13:23] public power And I ask you to
[2:13:24] commit to the same.
[2:13:24] Opponents today have argued
[2:13:27] that there isn't enough
[2:13:28] information to take the next
[2:13:28] step.
[2:13:32] But you have before you data
[2:13:32] that is founded on good
[2:13:33] information.
[2:13:37] It's time today is the time to
[2:13:38] take the next step.
[2:13:38] There will never be enough
[2:13:42] information for some people.
[2:13:43] Today San Diego pays and see
[2:13:43] Jeannie profits.
[2:13:46] But San Diegans deserve to own
[2:13:47] the goods and services that we
[2:13:47] pay for.
[2:13:48] So today I'm asking you to
[2:13:52] reject corporate greed and act
[2:13:52] in support of San Diegans by
[2:13:53] supporting public good.
[2:13:54] >> That doesn't include your
[2:13:54] time.
[2:14:04] Blair Beekman.
[2:14:09] Hi.
[2:14:09] I'm already here.
[2:14:09] Shoot.
[2:14:09] It's my time.
[2:14:09] Thank you.
[2:14:10] I'm not very knowledgeable
[2:14:13] about these things, but I come
[2:14:13] from the Bay Area.
[2:14:14] They have a great tradition of
[2:14:18] community energy and working
[2:14:19] with unions I feel I have to
[2:14:19] refresh myself on such
[2:14:20] subjects.
[2:14:23] I hope you guys are learning
[2:14:24] that too that the municipal
[2:14:27] things weren't offered here.
[2:14:28] For union things I hope there
[2:14:32] can be dialog between everyone
[2:14:33] .
[2:14:34] It sounds like people want to
[2:14:34] have the dialog and we
[2:14:35] definitely want to believe in
[2:14:38] the future of what community
[2:14:38] energy can offer.
[2:14:42] Where you minister a municipal
[2:14:43] system MAY not work.
[2:14:44] We do have little small
[2:14:44] programs you know like
[2:14:48] the funding of neighborhood
[2:14:48] infrastructure that can be
[2:14:52] called a municipal program
[2:14:53] possibly and work in those kind
[2:14:54] of avenues.
[2:14:58] But working towards the overall
[2:14:59] goal of community energy I hope
[2:14:59] we're all on board on that
[2:15:00] subject matter and want to be
[2:15:04] building such good things for
[2:15:04] all of us in our future.
[2:15:05] >> Thank you.
[2:15:11] Thank you, Jessica Anderson.
[2:15:17] >> Hello, Council.
[2:15:17] Month after month over the past
[2:15:18] year my utility bill has
[2:15:18] continued to climb, reaching
[2:15:19] nearly over $300 every single
[2:15:20] month in my first apartment out
[2:15:20] of college.
[2:15:21] This is unaffordable.
[2:15:24] It is ridiculous that City
[2:15:25] Jionni profits nearly $1
[2:15:31] billion a year yet 1 in 5 San
[2:15:32] Diegans cannot afford their
[2:15:32] utility bills.
[2:15:33] It is ridiculous that in that
[2:15:33] stage you need claim that this
[2:15:36] is not feasible when they are
[2:15:37] asking for an 8.6% increase at
[2:15:37] the cpu.
[2:15:41] See it is absolutely ridiculous
[2:15:42] when San Diegans are forced to
[2:15:42] choose between food on their
[2:15:46] table paying their rent and
[2:15:46] paying their utility bills it
[2:15:47] is clear the system is broken.
[2:15:50] Public power is a real
[2:15:51] opportunity to address this
[2:15:51] crisis.
[2:15:52] Public power presents us with
[2:15:55] the opportunity for clean
[2:15:56] affordable energy.
[2:15:56] Public power presents us with
[2:15:57] the opportunity for clean air
[2:16:01] public health, the opportunity
[2:16:01] to protect strong unions and to
[2:16:05] protect people In San Diego who
[2:16:06] cannot afford to live here any
[2:16:06] longer.
[2:16:07] Public power is a real viable
[2:16:11] opportunity to build a more
[2:16:11] affordable and thriving San
[2:16:12] Diego.
[2:16:12] >> Thank you.
[2:16:13] That does conclude your time.
[2:16:18] Nicole Lilly.
[2:16:23] Nicole Lilly.
[2:16:30] Okay.
[2:16:30] Uh oh.
[2:16:31] Here she comes.
[2:16:37] All right.
[2:16:41] >> Sorry.
[2:16:42] Hello.
[2:16:43] My name is Nicole Lilly.
[2:16:44] I'm a 23 year old run turned
[2:16:45] Golden Heel and the executive
[2:16:46] director of our Time to Act a
[2:16:47] youth led 523 nonprofit
[2:16:48] organizing powerful youth for
[2:16:48] an inclusive, equitable and
[2:16:52] sustainable future.
[2:16:53] As youth organizers we have
[2:16:53] become all too familiar
[2:16:57] tackling complicated and
[2:16:58] nuanced issues and creating new
[2:16:59] and innovative solutions
[2:17:02] because it is what is necessary
[2:17:02] .
[2:17:03] I support the implementation of
[2:17:04] public power without denying
[2:17:07] the necessity of labor
[2:17:07] considerations.
[2:17:08] We need not be divided.
[2:17:12] Dismantling monopolies like
[2:17:13] Jeannie is an effort that we
[2:17:13] must join together to pursue.
[2:17:14] Utilities like housing and
[2:17:17] health care are basic needs and
[2:17:18] allowing it to be maintained as
[2:17:21] a tool for profit because it is
[2:17:22] complicated is unacceptable.
[2:17:23] Every day San Diegans young
[2:17:27] organizers like myself demand a
[2:17:28] commitment from this council to
[2:17:28] do what is complicated because
[2:17:31] it is necessary.
[2:17:32] My roommate and I figure out
[2:17:32] how to make do with less and
[2:17:33] less every month to survive in
[2:17:34] San Diego.
[2:17:37] I urge the city to do more to
[2:17:38] make San Diego work for all
[2:17:39] the people in this room not
[2:17:39] the corporations that we
[2:17:41] destroy.
[2:17:41] >> Thank you.
[2:17:46] Lori Saldana.
[2:17:47] >> Good afternoon And I want to
[2:17:51] just acknowledge and thank all
[2:17:52] the people who have spoken
[2:17:52] today because the perspectives
[2:17:56] are important and I think
[2:17:56] they've all raised some really
[2:17:57] excellent points on both sides
[2:18:01] for and against us.
[2:18:02] There are a few certainties in
[2:18:02] life We know a couple of them
[2:18:07] death taxes and I'll add a
[2:18:08] third sdg in asking to raise
[2:18:11] their rates.
[2:18:11] 300,000 people at least cannot
[2:18:12] afford to pay their higher
[2:18:16] rates here in San Diego.
[2:18:17] We pay the highest rates in
[2:18:17] the country.
[2:18:21] So with certainty when I heard
[2:18:22] the report on my way in today
[2:18:22] and listen to the report saying
[2:18:26] an estimated 3% rate increase
[2:18:27] would even out over time i
[2:18:27] think you're way
[2:18:31] underestimating what us intends
[2:18:32] to do.
[2:18:33] So in the interest of time I
[2:18:33] will just point out one more
[2:18:34] thing.
[2:18:38] Working against us is one
[2:18:39] culprit.
[2:18:39] You have received $5,000 as of
[2:18:43] MARCH 31st from ibew for your
[2:18:44] run for Congress.
[2:18:44] I would ask that you please
[2:18:45] recuse yourself from voting on
[2:18:48] this.
[2:18:49] >> I think you have a conflict
[2:18:50] of interest and thank you for
[2:18:54] your time.
[2:18:54] >> Okay, take it easy.
[2:18:55] This is an information item.
[2:18:59] There is no voting.
[2:19:00] Dori Brueggemann You do have
[2:19:06] time ceded to you by Barbara I
[2:19:09] have a rose Okay you have two
[2:19:10] minutes.
[2:19:10] Please begin.
[2:19:10] >> Good afternoon Council I'm
[2:19:10] Dory.
[2:19:11] I'm an executive board member
[2:19:15] of Public Power San Diego and
[2:19:15] some of the points I had
[2:19:16] written down here today have
[2:19:19] already been said so I'll skip
[2:19:20] those.
[2:19:20] But I wanted to read a couple
[2:19:21] of quotes from the feasibility
[2:19:25] study phase two The first quote
[2:19:25] that I have here is
[2:19:30] the financial risks while real
[2:19:31] are manageable through careful
[2:19:32] planning and execution.
[2:19:35] The municipal electric utility
[2:19:36] remains viable even under
[2:19:36] adverse scenarios.
[2:19:41] The bottom line is that this
[2:19:42] report shows that this is
[2:19:42] feasible.
[2:19:43] This quote also tells us that
[2:19:47] when we build a public utility
[2:19:48] we are building a domain where
[2:19:48] success lies in our hands.
[2:19:53] And I want to say there's been
[2:19:54] a lot of fear mongering here
[2:19:54] today.
[2:19:55] I also just want to shout out
[2:19:55] thank you.
[2:19:58] Britney says for
[2:19:59] the fearmongering directly from
[2:20:00] sd Janey She did not identify
[2:20:00] herself but she does work for
[2:20:03] any.
[2:20:04] I want to talk about the risk
[2:20:09] of not making the choice to
[2:20:12] switch to public power instead
[2:20:13] making the choice to stay
[2:20:14] the course where we are hoping
[2:20:15] that legislative reform or cpc
[2:20:16] reform will somehow fix this
[2:20:20] problem.
[2:20:21] The cbc is not going to save
[2:20:21] us.
[2:20:26] That's not our turf.
[2:20:27] That's Sdrinis turf.
[2:20:32] One of our allies over here had
[2:20:32] a great example of the way that
[2:20:33] they exploit loopholes.
[2:20:37] Any any roadblock we put in
[2:20:38] their way they will exploit.
[2:20:39] We are not winning as much as
[2:20:42] we need to be to fix
[2:20:43] the problem at the state level.
[2:20:47] But the point is that public
[2:20:48] power is not uniquely risky And
[2:20:49] also we're lucky that we have
[2:20:50] this option that we are a city
[2:20:54] and we can actually do
[2:20:54] something significant to make a
[2:20:55] change and get out under
[2:20:59] the thumb of Jeannie.
[2:21:00] So I want to echo what my ally
[2:21:01] Patricia and Diego said.
[2:21:06] We can do this.
[2:21:09] >> We can work together.
[2:21:09] This is a growing movement.
[2:21:09] And don't let the fear
[2:21:11] mongering get to you.
[2:21:12] That does conclude your time.
[2:21:29] Omar Walter Nadji.
[2:21:34] One minute.
[2:21:35] One minute.
[2:21:35] Yes.
[2:21:35] So you said you uniquely
[2:21:35] positioned to chart a different
[2:21:36] course with national
[2:21:36] consequences.
[2:21:40] Climate is one of the greatest
[2:21:40] natural resources anywhere in
[2:21:41] the world.
[2:21:41] We have an abundant sunshine
[2:21:45] growing clean energy sector,
[2:21:46] world class research
[2:21:47] institutions and the population
[2:21:51] has consistently embraced
[2:21:52] innovations.
[2:21:53] We're not simply capable of
[2:21:53] generating enough clean energy
[2:21:57] to power our homes and
[2:21:58] businesses.
[2:21:59] We have potential to become a
[2:21:59] net producer of energy creating
[2:22:05] economic value that remains in
[2:22:09] our region rather than leaving
[2:22:09] it.
[2:22:09] Decisions being made right now
[2:22:10] will determine who benefits
[2:22:11] from this growth.
[2:22:16] This opportunity will the value
[2:22:21] created by this transformation
[2:22:21] of our system remain here in
[2:22:22] San Diego reinvested in
[2:22:22] affordability, reliability,
[2:22:23] infrastructure and local
[2:22:23] priorities?
[2:22:28] Or will it continue to flow
[2:22:29] primarily towards a system
[2:22:29] designed around shareholder
[2:22:30] returns?
[2:22:34] We have every incentive to
[2:22:34] preserve this model.
[2:22:41] If we were part of this study
[2:22:45] well we that's an investor
[2:22:45] owned utility understand that.
[2:22:46] But as you guys represent us
[2:22:47] the citizens your
[2:22:53] responsibility is about what
[2:22:56] serves San Diego is best.
[2:22:59] Sorry I'm not professional
[2:22:59] speech.
[2:23:00] Is my first speech in years.
[2:23:04] But anyway I think this is a
[2:23:05] test.
[2:23:06] The biggest question is ask
[2:23:06] whether the generation of
[2:23:11] wealth created by the energy
[2:23:11] economy should be captured
[2:23:12] locally and used to benefit
[2:23:17] communities that created it.
[2:23:18] Or are we to continue to give
[2:23:18] it to us to Junior?
[2:23:24] This isn't their decision.
[2:23:24] >> Thank you.
[2:23:25] That does conclude
[2:23:25] the development session but
[2:23:34] please keep.
[2:23:41] >> I just walk to the parking
[2:23:41] structure with former
[2:23:42] Councilmember Mark Kersey.
[2:23:46] >> He was kind enough to listen
[2:23:47] to my questions about why
[2:23:47] the city can't do the simplest
[2:23:53] things to oversee the many
[2:23:53] businesses that operate
[2:23:54] throughout this city.
[2:23:59] Do you know what he said to me?
[2:23:59] He said there was too much
[2:24:03] going on in this city for
[2:24:04] the council members to deal
[2:24:05] with all the details in
[2:24:09] the city.
[2:24:10] Too much going on for you to
[2:24:11] deal with.
[2:24:16] Now I'm not an expert on energy
[2:24:17] but I have become an expert on
[2:24:17] business interests hijacking
[2:24:22] the city government for their
[2:24:23] own purposes.
[2:24:23] If you have any doubt, look
[2:24:30] into how the city That's you.
[2:24:30] Joe Lacob and Todd Lauria have
[2:24:31] mismanaged the Torrey Pines
[2:24:32] Gloria port.
[2:24:35] Thank you.
[2:24:35] Thank you.
[2:24:36] Our final in-person speaker
[2:24:46] will be Anthony Ralphs.
[2:24:47] >> Good afternoon City Council.
[2:24:47] I want to remind everybody in
[2:24:52] this room that we all share one
[2:24:52] thing in common We're all
[2:24:53] getting ripped off by Jionni
[2:24:57] and it continues every day year
[2:24:57] after year.
[2:25:01] $1 billion in profits last year
[2:25:02] Almost a billion the year
[2:25:02] before.
[2:25:03] I'm sick to my stomach.
[2:25:03] I'm tired of not being able to
[2:25:08] pay my energy bills.
[2:25:09] I'm tired of the people in my
[2:25:09] city not being able to pay
[2:25:10] their energy bills.
[2:25:12] I'm tired of one quarter to a
[2:25:13] fifth of the people in this
[2:25:14] city not being able to afford
[2:25:19] meeting their energy bills at
[2:25:19] the end of the month.
[2:25:20] I'm tired of seeing a corporate
[2:25:20] monopoly and its greed
[2:25:25] prioritized over the people
[2:25:25] that live in the city.
[2:25:26] I am a union member.
[2:25:27] I'm a member of iww,
[2:25:30] the Industrial Workers of
[2:25:30] the World so I understand
[2:25:31] the priority that labor places
[2:25:32] in our lives.
[2:25:37] But I also understand that only
[2:25:38] half of the people in this room
[2:25:38] are getting paid handsomely to
[2:25:39] be here And it's not those of
[2:25:42] us who hate sd Jeanie for free.
[2:25:47] >> Thank you.
[2:25:48] >> Thank you.
[2:25:49] We also received two speaker
[2:25:53] slips from individuals wishing
[2:25:54] to register their position in
[2:25:55] favor but not speak from
[2:25:55] Brandon Reynolds and Korina
[2:26:02] Vega.
[2:26:02] That concludes in-person public
[2:26:03] comment.
[2:26:03] I've started the five minute
[2:26:04] timer and council chambers.
[2:26:08] We will now turn to the virtual
[2:26:09] queue in which there are
[2:26:09] currently ten speakers
[2:26:13] requesting to speak.
[2:26:26] We will begin with Eric Revolt
[2:26:27] Zachary.
[2:26:28] Imagine every single family
[2:26:32] house and duplex in San Diego
[2:26:33] covered with twice the solar
[2:26:33] panels there are now and
[2:26:38] they're going to get paid three
[2:26:39] times more for the energy.
[2:26:44] Imagine Fashion Valley covered
[2:26:44] in solar panels.
[2:26:45] Mission Valley covered in solar
[2:26:45] panels.
[2:26:50] The parking drives all their
[2:26:50] green power.
[2:26:51] And imagine every trolley
[2:26:56] station covered in providing
[2:26:57] shade and solar energy to feed
[2:27:02] the dc motors on the trolley
[2:27:03] instead of using ac dropping
[2:27:08] down to dc for them directly
[2:27:09] with solar panels on
[2:27:09] the trolley system Even
[2:27:13] the tracks elevator from
[2:27:14] the tracks.
[2:27:14] We're now doing ac power and
[2:27:20] turning that ac power into dc
[2:27:20] causing energy when we can
[2:27:21] generate it from solar panels
[2:27:27] right there on the trolley
[2:27:27] stations.
[2:27:28] >> No all involved is solar.
[2:27:32] Thank you.
[2:27:32] That does conclude your time.
[2:27:33] We will go next to Eric Proval,
[2:27:37] Paul Jones Eric.
[2:27:37] >> Perfect.
[2:27:38] Thank you so much counsel.
[2:27:44] My name is Eric Proval and I am
[2:27:44] the ceo of the San Diego North
[2:27:45] Economic Development Council
[2:27:49] representing an area North of
[2:27:50] that sa 56 with more than 1
[2:27:51] million residents and 500,000
[2:27:51] jobs.
[2:27:56] I urge caution and ask that
[2:27:56] the city pause this effort
[2:27:57] until the regional implications
[2:27:58] are better understood.
[2:28:01] The reported self acknowledges
[2:28:02] that the electric system was
[2:28:02] not built around city
[2:28:03] boundaries.
[2:28:07] Numerous substations and other
[2:28:08] assets serve customers both
[2:28:08] inside and outside the city.
[2:28:12] Yet the report appears to
[2:28:13] assume that separating and
[2:28:14] operating these assets can
[2:28:14] occur smoothly and
[2:28:15] cooperatively.
[2:28:19] That is a significant
[2:28:19] assumption with major
[2:28:20] implications for reliability
[2:28:21] costs in neighboring
[2:28:21] communities.
[2:28:25] But most importantly the report
[2:28:25] does not adequately explain how
[2:28:26] a municipal utility would
[2:28:30] participate in regional
[2:28:31] wildfire prevention, weather
[2:28:32] monitoring and emergency
[2:28:32] operations before moving
[2:28:37] forward.
[2:28:37] North County communities
[2:28:38] deserve a clear understanding
[2:28:39] of how municipal this action
[2:28:42] would affect them.
[2:28:43] Thank you for your comments.
[2:28:52] Kathleen Levitt Thank you.
[2:28:52] Good afternoon and thank you to
[2:28:53] everybody who spoke.
[2:28:53] Governor Newsom allowed
[2:28:58] California companies to tax
[2:29:02] taxpayer dollars from the state
[2:29:03] $21 billion while fund wildfire
[2:29:04] fund to pay for their damages,
[2:29:09] fines and liabilities for fires
[2:29:10] that were directly tied to it.
[2:29:10] For every dollar the utility
[2:29:15] spent building infrastructure
[2:29:15] they were allowed to charge
[2:29:19] customers an additional 10% in
[2:29:20] profits for their shareholders.
[2:29:21] They routinely their priority
[2:29:25] is profit for their executives
[2:29:25] and shareholders and they
[2:29:26] routinely disregard public
[2:29:31] priorities They disregard while
[2:29:32] diverse habitats that support
[2:29:32] migratory birds, reptiles,
[2:29:38] pollinators and they're ignored
[2:29:38] .
[2:29:39] On behalf of permitting if
[2:29:43] figure you need to put their
[2:29:44] power lines they now want to
[2:29:44] put their power lines directly
[2:29:49] through the anza-borrego Park
[2:29:50] that is a designated park in
[2:29:55] perpetuity to protect Thank
[2:29:55] you.
[2:29:56] That does conclude your time.
[2:30:01] Francis Yasmeen Matlala Hello.
[2:30:06] So first it's I think it's
[2:30:07] important for everyone to
[2:30:12] realize that like the entire
[2:30:13] state of Nebraska has municipal
[2:30:13] run power is is not impossible
[2:30:18] task any government can do it
[2:30:18] if they just create the public
[2:30:19] the political will to do it.
[2:30:23] I think that every one of
[2:30:24] the council members should
[2:30:24] attend The American Public
[2:30:29] Power Association's annual
[2:30:30] conference and you can learn
[2:30:31] about and meet cities of people
[2:30:35] from cities all over
[2:30:35] the country that enjoy
[2:30:36] the benefits of public power
[2:30:37] that we are only dreaming of.
[2:30:41] I want to state that the sdg
[2:30:46] business model it's not about
[2:30:47] security or affordability.
[2:30:47] It's about profit And even
[2:30:48] the way they're designing
[2:30:53] the future with long
[2:30:54] transmission lines out to
[2:30:54] the desert is the wrong way to
[2:30:55] go.
[2:30:55] It's not sensible unless you
[2:30:59] try and exploit people for
[2:31:00] money as he takes $1 million a
[2:31:04] day out of the city and 3
[2:31:04] million a day out of
[2:31:05] the county, it's got to stop
[2:31:05] now.
[2:31:18] >> Thank you, John Stump by
[2:31:23] John Stone And DECEMBER 15th
[2:31:24] 2025 I sent the council a nine
[2:31:30] point program to get out of
[2:31:31] this mess with me.
[2:31:35] And the key thing in this nine
[2:31:35] point program which I'm sending
[2:31:36] you again today is that
[2:31:41] the city should create its own
[2:31:42] municipal utility for its own
[2:31:42] use.
[2:31:43] The city currently now
[2:31:48] generates its own power and
[2:31:49] spends a lot of money paying
[2:31:53] Genny.
[2:31:53] The city could easily set up
[2:31:54] its own department and that
[2:31:59] would be the initial step
[2:31:59] the transitional step toward
[2:32:00] public power.
[2:32:05] City Council Start exploring
[2:32:06] where you spend money and where
[2:32:11] you generate electricity now
[2:32:12] and set up a separate
[2:32:13] department To watch that please
[2:32:18] follow the direction of my
[2:32:19] mother at DECEMBER 15th 2025.
[2:32:24] >> Thank you very much.
[2:32:24] Thank you.
[2:32:25] And I please know that the five
[2:32:29] minute timer has concluded with
[2:32:30] eight speakers left in
[2:32:30] the queue and the other
[2:32:33] speakers will be taken after
[2:32:34] this time The voices please
[2:32:41] begin.
[2:32:42] >> Hi my name is We try and set
[2:32:43] the director for businesses.
[2:32:47] I'm calling to support you know
[2:32:47] public power.
[2:32:48] I know that I also think it's
[2:32:54] ironic that we need a study to
[2:32:55] figure out where we should put
[2:32:59] the power.
[2:33:00] We all talk about the rising
[2:33:05] costs of standing so much now I
[2:33:06] you know, if you can find a
[2:33:07] little will to make it happen,
[2:33:12] it will really help a lot of us
[2:33:13] reduce the cost of living here
[2:33:13] and stay here And then I go it
[2:33:18] is the no getting there now we
[2:33:19] don't really need a study to do
[2:33:20] it But now you have a study Can
[2:33:21] you please move forward with
[2:33:22] it?
[2:33:22] That would be great.
[2:33:27] Thank you.
[2:33:28] Color with the last word Digits
[2:33:28] 88213.
[2:33:40] Please begin.
[2:33:41] Okay so the goal here is
[2:33:41] unbelievable to get people to
[2:33:46] have confidence that this board
[2:33:46] will do the right thing when
[2:33:47] the record of ignoring
[2:33:52] the people's wishes and needs
[2:33:52] are like it's been proven in
[2:33:53] putting people honestly to
[2:33:59] the people who are awake to any
[2:33:59] and all we have We have so much
[2:34:00] of our money and keep asking
[2:34:03] for more But you realize that
[2:34:04] this board you're addressing
[2:34:09] does the same exact thing
[2:34:10] honestly from sandag to
[2:34:10] the county to this board.
[2:34:16] I mean all these corrupt
[2:34:17] government agencies they'll
[2:34:17] take for it They will take from
[2:34:22] us and you know, whatever
[2:34:22] benefits them.
[2:34:23] But I just wish, you know, more
[2:34:28] people were awake to that And
[2:34:29] it's it's amazing You can't
[2:34:29] address us without also
[2:34:34] addressing the corruption of
[2:34:34] the very board.
[2:34:39] Well, I got to say that.
[2:34:40] Thank you, Evan Burke, please
[2:34:45] begin.
[2:34:46] >> Hello.
[2:34:47] I want to speak in favor of
[2:34:50] public power first.
[2:34:50] There is no benefit to a
[2:34:51] private monopoly like Genie.
[2:34:56] There's no need to even pretend
[2:34:57] to little cost with no
[2:34:57] competition.
[2:34:58] Meanwhile, their insanely high
[2:34:58] power costs make our cost of
[2:35:02] living more expensive and
[2:35:02] contribute to issues like
[2:35:03] homelessness.
[2:35:04] I found the fear mongering that
[2:35:08] I've heard outrageous.
[2:35:09] We hear that we don't have
[2:35:09] enough data but what more data
[2:35:10] do we need when dozens of other
[2:35:13] cities have already done this
[2:35:14] and succeeded, we were warned
[2:35:15] that San Diego will have to pay
[2:35:16] new costs like insurance
[2:35:20] premiums.
[2:35:21] But San Diegans are already
[2:35:22] paying those costs and more
[2:35:25] Whenever Janey turns a profit
[2:35:26] the definition of madness is
[2:35:27] doing the same thing over and
[2:35:27] over again and expecting a
[2:35:28] different result.
[2:35:32] We've seen what I see Genie can
[2:35:33] do and will do and now's
[2:35:34] the time to try something
[2:35:38] different or just a new form of
[2:35:39] pop pop power.
[2:35:39] >> Thank you.
[2:35:40] Thank you.
[2:35:47] Natalie Rashid, please begin.
[2:35:47] Hi.
[2:35:54] Natalie Rushdie Here I am
[2:35:54] District seven.
[2:35:55] I want to bring couple
[2:35:59] attention to one number that
[2:36:00] explains a lot of what's
[2:36:01] happening with our electric
[2:36:01] bills.
[2:36:05] You see just authorized a
[2:36:10] return on equity of nearly 10%
[2:36:10] for 2026 to 2028.
[2:36:11] That's the profit percentage
[2:36:12] Sempra's shareholders earn not
[2:36:16] on selling us electricity but
[2:36:16] on infrastructure spending
[2:36:17] itself.
[2:36:17] The more he spends on poles
[2:36:22] wires and upgrades the more
[2:36:22] profit profit it earns because
[2:36:23] that return is applied to
[2:36:28] the entire faith based
[2:36:28] independent economics at
[2:36:29] the American Economic Liberties
[2:36:34] Project testified that their
[2:36:35] fair return based on current
[2:36:35] market conditions would be
[2:36:36] closer to 6% and the gap
[2:36:39] between that and what was
[2:36:40] actually authorized comes out
[2:36:44] to 4.4 billion in overcharges
[2:36:45] in 2026 alone across
[2:36:45] California's immediate
[2:36:46] utilities.
[2:36:50] This is exactly why the cities
[2:36:51] on Public Power study found
[2:36:56] that most Thank you that does
[2:36:56] conclude your tired electric
[2:36:57] grid.
[2:36:59] Next speaker is Jordan Lewis.
[2:37:05] Please begin.
[2:37:06] >> Hi, my name is Katherine
[2:37:07] Mock.
[2:37:11] I'm a resident of San San Diego
[2:37:12] County in North County and I'm
[2:37:13] an sd g and customer and I
[2:37:17] support acquiring sd Janney
[2:37:17] Infrastructure and could bring
[2:37:18] it to a publicly owned power
[2:37:19] utility particularly for
[2:37:22] concerns like affordability and
[2:37:23] transitioning to zero emission
[2:37:23] utilities.
[2:37:28] Well it's expensive to acquire
[2:37:29] a managed utility and that cost
[2:37:29] will be footed by us rate
[2:37:30] payers.
[2:37:30] We're already footing the bill
[2:37:34] for sd duty and on top of that,
[2:37:35] as others have pointed out,
[2:37:36] we're paying the additional
[2:37:39] cost of a for profit entity
[2:37:40] including the hundreds of
[2:37:41] millions of profits each year
[2:37:45] that sd only makes as well as
[2:37:45] the 22.2 million total
[2:37:46] compensation for Jeffrey
[2:37:46] Martin, Sempra ceo That was
[2:37:50] last year's number.
[2:37:51] So for these reasons I fully
[2:37:51] support advancing a publicly
[2:37:55] owned utility for San Diego.
[2:37:56] Please continue this effort.
[2:37:57] Do what you can to reduce
[2:37:57] the uncertainty.
[2:37:58] Incorporate the concerns of
[2:38:01] some of the folks who spoken
[2:38:01] opposition today and complete
[2:38:02] the transition to public power.
[2:38:02] >> Thank you.
[2:38:06] Thank you.
[2:38:07] Next speaker is a caller with
[2:38:10] last four digits 8700.
[2:38:15] Please begin.
[2:38:21] Thank you.
[2:38:22] Yes, I support public power
[2:38:26] also known as Power of
[2:38:27] the People.
[2:38:27] Here are my reasons.
[2:38:31] Number one, all of you using
[2:38:36] the power of your voice today.
[2:38:37] Number two, trusting that all
[2:38:42] of us will do a full analysis
[2:38:42] of this of its ability.
[2:38:43] Number three keeping an eye on
[2:38:48] San Francisco as a public power
[2:38:48] model.
[2:38:52] This is a golden opportunity
[2:38:53] for creative action outside
[2:38:59] the box of sd g and e!
[2:39:00] It's been a great item.
[2:39:01] Thank you everybody and love to
[2:39:06] all.
[2:39:07] Thank you.
[2:39:07] Our next speaker is a caller
[2:39:08] with the last four digits to
[2:39:09] 265.
[2:39:20] Please begin.
[2:39:20] I am Diego.
[2:39:25] I live in Kensington.
[2:39:26] Over the last five years San
[2:39:26] Diego Gas Electric has
[2:39:30] appropriated an average more
[2:39:30] than $800 million per year.
[2:39:34] At the same time, nearly 1 in 5
[2:39:35] Centurions cannot afford to pay
[2:39:39] their utility bills.
[2:39:40] And greed knows no end.
[2:39:41] And just last week they
[2:39:45] requested the rate increase of
[2:39:49] 8.6% at the puc.
[2:39:50] This would mean an increase of
[2:39:54] over $22,000,022 a month on top
[2:39:54] of the already high utility
[2:39:58] rates we are paying above
[2:39:59] the public power Feasibility
[2:39:59] study shows public power is
[2:40:04] possible feasible and cheaper
[2:40:04] for San Diego and the time for
[2:40:05] public power is now.
[2:40:09] My utility bill is like we live
[2:40:13] in a 2000 square foot apartment
[2:40:14] in utility bills like $250.
[2:40:17] It's just ridiculous.
[2:40:18] >> We need to do public art
[2:40:18] now.
[2:40:22] You.
[2:40:23] >> Thank you.
[2:40:23] Our final speakers and all of
[2:40:24] Alaska.
[2:40:26] Please begin.
[2:40:26] Hi.
[2:40:31] So I'm a resident of District
[2:40:32] two.
[2:40:32] Natural monopolies like
[2:40:37] utilities should not be owned
[2:40:37] by for profit entities because
[2:40:38] without competition and
[2:40:41] swimmers will always be
[2:40:41] squeezed for profit.
[2:40:42] It was a mistake to have ever
[2:40:43] allowed power to be privately
[2:40:43] owned.
[2:40:46] If the power had been publicly
[2:40:47] owned, the electrical expertise
[2:40:51] and the good union jobs would
[2:40:51] have always been available
[2:40:52] through a public entity.
[2:40:53] It will never be a good time to
[2:40:56] unwind this mistake but it
[2:40:56] needs to be done.
[2:40:57] We understand the fear of
[2:41:00] uncertainty facing union
[2:41:01] members but there is no better
[2:41:01] union employer than public
[2:41:02] agencies.
[2:41:05] As you have pointed out, your
[2:41:06] expertise and skill will still
[2:41:06] be needed.
[2:41:07] And yes, there will be a
[2:41:10] reshuffling of jobs but
[2:41:11] the jobs would not go away.
[2:41:12] We hear the argument we don't
[2:41:12] have enough information But
[2:41:15] isn't this what the council is
[2:41:16] considering a feasibility study
[2:41:20] to gather more information.
[2:41:21] We want the council to have all
[2:41:21] the information possible to
[2:41:24] make a decision on this issue.
[2:41:25] >> We cannot be afraid of this
[2:41:26] knowledge.
[2:41:26] Thank you.
[2:41:29] Thank you.
[2:41:30] That does conclude public
[2:41:33] comment on item 200.
[2:41:34] >> Thank you.
[2:41:34] All right.
[2:41:35] Thank you, Deputy Clerk.
[2:41:38] Let's take a moment and thank
[2:41:38] Kevin.
[2:41:39] This is his first big meeting
[2:41:40] sitting there in the chair.
[2:41:43] So well done, sir.
[2:41:44] And to your entire team because
[2:41:48] the way that you organized all
[2:41:49] the flips truly, truly
[2:41:49] impressive.
[2:41:50] I'll just give a personal
[2:41:53] thanks to everybody that showed
[2:41:54] up and the special shout out to
[2:41:55] those who showed up just to
[2:41:57] give time to somebody else to
[2:41:58] speak.
[2:41:58] Greatly appreciate that.
[2:41:59] So with that we will turn it
[2:42:02] over to the council members for
[2:42:02] questions and comments.
[2:42:03] And we'll start with the chair
[2:42:07] of the Environment Committee.
[2:42:07] >> Council member Ella Rivera.
[2:42:08] All right.
[2:42:08] Thank you.
[2:42:09] Council PRESIDENT.
[2:42:12] Thanks for the report.
[2:42:12] Obviously we had this
[2:42:16] conversation at Environment
[2:42:17] Committee.
[2:42:18] This is a continuation of that
[2:42:23] And I think the additional
[2:42:24] public participation is useful
[2:42:28] because it highlighted to me
[2:42:28] what I think is probably
[2:42:29] the most important component of
[2:42:33] this And with very few
[2:42:34] exceptions almost every comment
[2:42:38] we heard today came from one of
[2:42:39] two groups either the blue
[2:42:39] collar workers who who keep
[2:42:43] the grid running or residents
[2:42:43] who are breaking under
[2:42:44] the weight of their bills.
[2:42:48] It's working People fighting to
[2:42:49] make rent, fighting to keep
[2:42:52] the lights on and fighting each
[2:42:52] other over scraps because
[2:42:53] that's exactly what a rigged
[2:42:57] economy does.
[2:42:57] It doesn't just take people's
[2:42:58] money.
[2:42:58] It turns neighbors against each
[2:43:02] other, workers against
[2:43:03] ratepayers in a fight over who
[2:43:07] absorbs the pain while
[2:43:08] the people who actually rig
[2:43:11] the game keep their feet up and
[2:43:12] enjoy the show from the other
[2:43:12] side of the table.
[2:43:13] So who's doing that?
[2:43:16] As Jeanie in Sempra the set of
[2:43:17] millionaire executives who will
[2:43:21] go home tonight to a financial
[2:43:22] reality that no one who
[2:43:25] testified here today can even
[2:43:30] imagine let alone enjoy.
[2:43:31] So our San Diego boys are
[2:43:32] fighting each other over
[2:43:32] scraps.
[2:43:35] Executives sit fat and happy
[2:43:36] enjoying the fruits of their
[2:43:36] victories.
[2:43:37] We should put some numbers to
[2:43:39] that because I think that's
[2:43:39] important.
[2:43:40] Sempra ceo Jeff Martin took
[2:43:44] home a compensation package
[2:43:49] worth $22.2 million in 2025
[2:43:50] That made him the fourth
[2:43:50] highest paid energy executive
[2:43:54] in the country.
[2:43:54] An average California worker
[2:43:58] would have to work for 236
[2:43:58] years to earn what Martin made
[2:44:02] in a single year 236 years.
[2:44:07] That's not poor people.
[2:44:08] That's the average California
[2:44:08] worker.
[2:44:12] And that's the gap between
[2:44:13] the people who keep the grid
[2:44:17] running and the man at the top
[2:44:17] of the company who owns it.
[2:44:21] And I think there's something
[2:44:22] really important about why it's
[2:44:27] so important to continue this
[2:44:27] conversation.
[2:44:28] I understand the anxiety that
[2:44:32] it creates for the workers who
[2:44:32] who are impacted by
[2:44:33] the conversation.
[2:44:36] But I want to explain why it's
[2:44:37] been important to keep this
[2:44:38] conversation going.
[2:44:38] Because despite this
[2:44:41] conversation going despite a
[2:44:41] visibility report that says
[2:44:46] that this is feasible despite a
[2:44:46] growing movement of San Diegans
[2:44:51] who are organizing to fire
[2:44:52] Jeanie as Jeanie still filed
[2:44:55] for another rate increase 8.6%
[2:44:59] on the average monthly bill
[2:45:00] That's an extra 20 to 50 a
[2:45:00] month.
[2:45:01] While all of that scrutiny is
[2:45:05] happening, not pausing to read
[2:45:05] the room, they're not
[2:45:06] questioning whether or not they
[2:45:09] should slow down.
[2:45:10] They're just they just keep at
[2:45:10] it.
[2:45:14] Increase after increase after
[2:45:14] increase.
[2:45:15] And the message that that sends
[2:45:19] to us is that they don't think
[2:45:19] we have the nerve to have an
[2:45:20] honest conversation about
[2:45:20] alternatives.
[2:45:24] So I think we have a
[2:45:24] responsibility to know what our
[2:45:25] options are and ensure
[2:45:26] the public knows the pros and
[2:45:31] cons of those options.
[2:45:32] According to the most recent
[2:45:33] electric rates report by
[2:45:33] the California Public
[2:45:37] Advocate's Office over the past
[2:45:37] ten years as residential rates
[2:45:45] have risen 98% and every single
[2:45:48] cent that ibew Local 465
[2:45:49] members have earned in that
[2:45:50] same period they've had to
[2:45:52] fight for every contract
[2:45:53] grievance after grievance.
[2:45:59] Nothing handed to you earlier
[2:46:00] this year or at the end of last
[2:46:02] year as de went after a small
[2:46:03] group of workers right to even
[2:46:03] hold a union election.
[2:46:06] Hiring the most notorious union
[2:46:11] busting law firm in America and
[2:46:12] tried to take advantage of a
[2:46:16] paralyzed federal labor board
[2:46:17] to run out the clock on that
[2:46:17] vote.
[2:46:18] And if it wasn't for the work
[2:46:20] of the union they would have
[2:46:26] been successful.
[2:46:26] >> So when ratepayers see a 90%
[2:46:27] or 98% rate increase and ask
[2:46:30] for that money went I know it
[2:46:34] didn't go to the workers.
[2:46:35] It went to a company that will
[2:46:36] spend resources fighting just a
[2:46:40] handful of its own employees
[2:46:40] rights to organize or asking
[2:46:47] the rest of us for another 8.6%
[2:46:48] .
[2:46:48] So I want to make sure we're
[2:46:49] really clear about what we're
[2:46:50] up against and who we're
[2:46:52] standing with.
[2:46:53] MS. Mendoza I appreciated what
[2:46:54] you said.
[2:46:57] We can work together.
[2:46:58] Nobody wants to fire
[2:46:58] the workers who built the grid
[2:47:01] and keep it running.
[2:47:02] The conversation is about what
[2:47:06] our options are instead of
[2:47:07] the status quo Because
[2:47:08] the status quo does not work.
[2:47:11] The status quo allows a ceo to
[2:47:12] earn 236 years worth an average
[2:47:16] worker salary in a single year
[2:47:16] ,fights its union over a
[2:47:18] handful of jobs and squeezes
[2:47:19] rate payers for a 98% rate
[2:47:23] increase.
[2:47:24] All while there's a
[2:47:24] conversation happening about
[2:47:28] what our options are.
[2:47:33] So that context is incredibly
[2:47:33] important.
[2:47:34] I appreciate the conversation
[2:47:37] here today and I again just
[2:47:38] want to reiterate why I think
[2:47:39] it's so important for us to
[2:47:42] keep having it.
[2:47:43] >> There were a lot of
[2:47:43] important points made in
[2:47:47] today's conversation about
[2:47:47] the way that everyone feels
[2:47:51] these impacts about the way
[2:47:52] the city feels, the rising
[2:47:56] costs, the way it has a a
[2:47:57] domino effect in terms of cost
[2:48:00] of living.
[2:48:05] And we have this responsibility
[2:48:05] .
[2:48:09] I did have one one question
[2:48:10] that I brought up last time and
[2:48:11] I'm curious if there's any
[2:48:11] updates.
[2:48:14] Last time I asked about Long
[2:48:15] Island and the hybrid model
[2:48:19] that they pursued.
[2:48:19] Have you done any additional
[2:48:24] research on that?
[2:48:24] Any additional analysis?
[2:48:29] We did look into it generally.
[2:48:29] Councilmember I think
[2:48:30] the important thing to remember
[2:48:33] about Long Island so you are
[2:48:34] right that the Long Island
[2:48:38] Power Authority lpa then has a
[2:48:39] relationship with Shute I don't
[2:48:43] remember actual utility
[2:48:43] operator.
[2:48:44] The issue is is that because
[2:48:47] Long Island and New England and
[2:48:48] most of the East Coast frankly
[2:48:49] is in a deregulated
[2:48:49] environment.
[2:48:53] So it automatically splits kind
[2:48:54] of commodity And then you've
[2:48:54] got a lot of competing
[2:48:57] distributors.
[2:48:58] >> They are overseen still by
[2:48:59] the state Department of Energy
[2:49:02] and Electricity Resources.
[2:49:03] And so you still have a state
[2:49:07] level regulatory body that
[2:49:08] oversees that specific contract
[2:49:12] And there are conversations
[2:49:13] going on on updates on that
[2:49:13] contract that are coming up in
[2:49:14] the next several years.
[2:49:17] If there is continued interest
[2:49:18] in deep diving in here we can
[2:49:22] but there's no equivalent model
[2:49:23] in a in what was a bundled or a
[2:49:23] semi unregulated environment
[2:49:27] like Calif in some of the other
[2:49:28] larger states have got it.
[2:49:32] >> Appreciate that.
[2:49:33] General idea though is
[2:49:37] the workers don't have to be
[2:49:37] displaced from their current
[2:49:38] place of work.
[2:49:38] They continue to do the work
[2:49:42] that they do for who they do
[2:49:42] it.
[2:49:43] What changes is that company is
[2:49:47] now working for the city or
[2:49:48] the municipality instead If I
[2:49:52] understand the model correctly.
[2:49:52] Yes.
[2:49:56] Generally what I did not what
[2:49:57] we did not necessarily have
[2:49:58] time or resources to do was to
[2:49:59] dig into the actual contracts
[2:50:02] and compare what Long Island
[2:50:02] Power Authority has negotiated
[2:50:07] with the in this case.
[2:50:08] And in that instance you're
[2:50:08] talking about us contracting
[2:50:11] out to sd Jenny so that that
[2:50:12] and how different that is from
[2:50:16] say either the workers contract
[2:50:16] under that with that system
[2:50:20] versus another and how
[2:50:21] different say the revenue or
[2:50:25] model is versus other areas
[2:50:26] where that utility operates
[2:50:27] separately?
[2:50:30] Okay.
[2:50:31] Again, just in terms of us
[2:50:36] understanding options, the pros
[2:50:36] and cons of those options
[2:50:37] hearing what are the main
[2:50:41] sources of anxiety that matter
[2:50:42] to me here which is hardworking
[2:50:42] people not being displaced in
[2:50:44] their jobs, not having their
[2:50:49] jobs place at risk And that's
[2:50:49] seeming to be a thing that was
[2:50:50] worked through in that model
[2:50:54] While also significantly
[2:50:54] reducing management costs.
[2:50:59] It just seems like a thing that
[2:51:00] we should know as a potential
[2:51:03] tool in the tool belt.
[2:51:04] I'll just end with this council
[2:51:04] PRESIDENT.
[2:51:05] I'm glad we're having this
[2:51:08] conversation.
[2:51:09] I think it's important and I
[2:51:13] appreciate Nate your comments.
[2:51:18] The reality is is that this is
[2:51:19] I don't know that there's a
[2:51:19] single issue where I heard have
[2:51:23] heard more agreement amongst
[2:51:24] folks from different sides of
[2:51:24] the political spectrum.
[2:51:25] We had some of the most
[2:51:28] conservative folks who engage
[2:51:28] with the council and some of
[2:51:29] the furthest to the left who
[2:51:32] are in complete agreement that
[2:51:33] what is what we are currently
[2:51:33] operating under is
[2:51:38] unsustainable and unacceptable.
[2:51:38] And if that doesn't show that
[2:51:42] the dam is starting to break,
[2:51:42] that San Diegans are sick and
[2:51:43] tired of paying so much for
[2:51:46] their utility bills I don't
[2:51:47] know what will.
[2:51:47] And it's that's why it's
[2:51:48] incumbent upon us to continue
[2:51:51] this conversation, continue to
[2:51:52] work so that we know what
[2:51:53] options we have to both protect
[2:51:54] workers and protect ratepayers.
[2:51:57] Thank you, Council PRESIDENT.
[2:51:58] All right.
[2:51:58] Well, thank you Council member
[2:51:59] Eli Rivera.
[2:52:01] And as a reminder this is an
[2:52:02] information item and no motion
[2:52:06] is required And I'm going to
[2:52:07] jump in at this point.
[2:52:08] So I want to start out by
[2:52:08] thanking Heather General
[2:52:13] Services Team Randy Wilde and
[2:52:13] the mayor's office and
[2:52:14] the teams that knew Jen and and
[2:52:17] for this work And of course
[2:52:17] thank you to every member of
[2:52:18] the public who showed up
[2:52:21] speaking on all sides of
[2:52:22] the issue And those who called
[2:52:25] in Phase two report was an
[2:52:26] equally impressive undertaking
[2:52:26] as phase one and provided
[2:52:30] greater detail and clarity on a
[2:52:31] proposal that is massive in
[2:52:32] scale and as complex as
[2:52:34] anything we would undertake at
[2:52:35] the city.
[2:52:36] That does not mean we should
[2:52:36] shy away.
[2:52:40] We can and will do big things
[2:52:40] and win Financial impacts on
[2:52:41] residents and businesses is on
[2:52:44] the table.
[2:52:44] We must be bold.
[2:52:45] I will start by highlighting
[2:52:48] the opening slide.
[2:52:49] I mean it's simple Energy
[2:52:50] utility is both economically
[2:52:50] feasible and technically
[2:52:54] feasible.
[2:52:55] That is what the city set out
[2:52:55] to determine and should we
[2:52:59] decide to proceed there is a
[2:52:59] path forward.
[2:53:00] Of course that comes with risks
[2:53:03] that must be weighed and
[2:53:03] assumptions that must be tested
[2:53:04] and we will have to find
[2:53:08] the right balance.
[2:53:09] And whether you feel the study
[2:53:09] has been too conservative in
[2:53:13] its projections or it MAY take
[2:53:13] longer than initially
[2:53:14] anticipated.
[2:53:14] A municipal energy utility
[2:53:18] remains feasible and since
[2:53:19] the outset onset of exploring
[2:53:23] public power and when I voted
[2:53:24] against the current electric
[2:53:27] and gas franchises in 2021 I
[2:53:27] have talked about the limited
[2:53:30] options we have as a city.
[2:53:31] But just as we fought for in
[2:53:32] the creation of the San Diego
[2:53:36] community power in giving
[2:53:36] customers options it would be
[2:53:40] irresponsible of us not to
[2:53:41] pursue pursue alternatives to
[2:53:45] our energy distribution system
[2:53:45] .
[2:53:46] Today's presentation as we've
[2:53:46] heard coincidentally perhaps
[2:53:50] prophetically comes just days
[2:53:51] after sd genius latest general
[2:53:55] rate case submitted to the cpc.
[2:53:56] And as we've heard from members
[2:53:59] of the public sd Janey's own
[2:54:00] projections are substantially
[2:54:01] higher than the average annual
[2:54:01] increase assumed by
[2:54:04] the consultants in the study.
[2:54:05] >> As an engineer I appreciate
[2:54:09] that conservatism moving
[2:54:10] forward with this process
[2:54:10] demonstrates our commitment to
[2:54:14] not sitting back not accepting
[2:54:15] the status quo nor remaining
[2:54:15] vulnerable to a monopoly but
[2:54:19] rather exploring all options to
[2:54:20] provide more affordable rates
[2:54:24] keeping our options open and
[2:54:25] continuing to pursue a
[2:54:29] municipal energy utility is in
[2:54:30] everyone's best interest.
[2:54:34] So for those of you who opposed
[2:54:34] this conversation, look into
[2:54:39] the faces who can't afford but
[2:54:39] don't qualify for subsidies on
[2:54:43] their electric bill.
[2:54:44] And for those of you who
[2:54:45] support, look into the faces of
[2:54:48] the workers who are wondering
[2:54:49] whether they will still have a
[2:54:53] long term career in their
[2:54:53] chosen profession.
[2:54:58] And a promise today is not
[2:54:59] necessarily a promise that will
[2:54:59] be kept.
[2:55:03] The two sides of a conversation
[2:55:04] And for those who oppose
[2:55:08] municipal tell me the question
[2:55:09] I ask you is what are you doing
[2:55:12] to join the city in our efforts
[2:55:13] to control rates, to control
[2:55:17] the impact or reduce the impact
[2:55:18] that is hitting so many San
[2:55:18] Diegans?
[2:55:23] And if those who spoke that
[2:55:27] were prior here at City Hall
[2:55:28] let me remind you you let a 50
[2:55:32] year franchise expire with no
[2:55:32] game plan to give our city
[2:55:36] options or help control rates.
[2:55:40] We missed a golden opportunity
[2:55:41] and 2021 became a very awkward
[2:55:45] year to realize we had no place
[2:55:46] to go and a franchise had to be
[2:55:50] signed to keep the wheels
[2:55:51] turning so to speak.
[2:55:52] So this is a difficult
[2:55:55] conversation.
[2:55:56] I agree with Councilmember Eloy
[2:55:56] Rivera.
[2:55:57] We should keep our options
[2:55:57] open.
[2:56:00] We should continue to pursue a
[2:56:01] municipal energy utility
[2:56:05] because it's in everyone's best
[2:56:05] interest.
[2:56:06] And until we have sd Jeannie
[2:56:10] come to the table, pull that
[2:56:10] general rate increase and have
[2:56:13] the conversation as one member
[2:56:14] of the public I'm not going to
[2:56:14] name.
[2:56:15] He knows who he is and he
[2:56:18] pleasantly surprised me today
[2:56:19] and have a real conversation
[2:56:23] about how we relook at rates
[2:56:23] knowing as some of you have
[2:56:24] said that the cpp is not going
[2:56:28] to save us.
[2:56:29] And as a reminder cpc doesn't
[2:56:32] guarantee profits.
[2:56:33] They set a profit rate to set
[2:56:34] the rates.
[2:56:38] And when I won and the investor
[2:56:38] owned utility exceeds those
[2:56:42] profit rates year after year
[2:56:42] after year.
[2:56:43] Something has to change.
[2:56:46] We have to protect our most
[2:56:47] vulnerable individuals who
[2:56:51] can't afford what should be a
[2:56:52] right of affordable electricity
[2:56:52] going forward.
[2:56:57] >> So that's where we stand
[2:56:57] today.
[2:56:58] I agree that we have to keep
[2:57:01] this on the table going forward
[2:57:01] .
[2:57:02] And again, thank you for
[2:57:02] the good work in this phase two
[2:57:03] study.
[2:57:07] With that again this is an
[2:57:07] information item no motions
[2:57:08] required.
[2:57:08] We'll turn to council member
[2:57:12] Campbell, the third member of
[2:57:12] the Environment Committee.
[2:57:16] >> Thank you so much.
[2:57:16] Council PRESIDENT When first
[2:57:21] elected and thank you for
[2:57:22] the presentation and thanks to
[2:57:22] the public for all of your
[2:57:25] input.
[2:57:25] It's a.
[2:57:26] Agreed with and appreciated on
[2:57:30] all sides.
[2:57:31] This is a really complicated
[2:57:35] issue and I want to say that
[2:57:35] when I was first elected to
[2:57:36] council I was appointed chair
[2:57:37] of the Environment Committee
[2:57:40] That was JANUARY 2019.
[2:57:40] First thing I did was lead
[2:57:44] the effort to create community
[2:57:45] choice aggregation.
[2:57:49] In other words, what became San
[2:57:50] Diego community power does now
[2:57:53] include six cities and our
[2:57:54] county government which means
[2:57:58] our unincorporated areas.
[2:57:59] One of the goals was to provide
[2:57:59] cleaner energy options to
[2:58:03] reduce the effects of climate
[2:58:03] change.
[2:58:04] It also gave our communities
[2:58:07] more local control over how we
[2:58:08] purchase energy And at that
[2:58:11] time the city commissioned
[2:58:12] the first feasibility study on
[2:58:15] municipal izing our energy
[2:58:16] utilities, gas and electric.
[2:58:20] And since then we have
[2:58:21] completed two more studies and
[2:58:26] spent millions of dollars on
[2:58:26] consultants to tell us about
[2:58:31] municipal ization millions of
[2:58:31] dollars we could use this year
[2:58:35] in our budget or in a year in
[2:58:35] our budget.
[2:58:40] The findings have always been
[2:58:41] clear The estimated cost is at
[2:58:41] least 8 billion.
[2:58:45] That was the first study that
[2:58:48] was seven years ago is probably
[2:58:49] 16 billion now and that was
[2:58:50] just for the infrastructure
[2:58:54] needed.
[2:58:54] The city cannot afford this.
[2:58:59] That estimate does not include
[2:59:03] additional cafs costs staffing
[2:59:04] operations and onboarding.
[2:59:04] The impact of exit fees on
[2:59:08] the other 17 cities that rely
[2:59:13] on sd Jeannie system and would
[2:59:14] expect us to pay them
[2:59:18] the difference or the fact that
[2:59:19] we still would need to use sd g
[2:59:23] and e for the gas component.
[2:59:28] So this study was only about
[2:59:28] electricity not the g.
[2:59:32] Part of sd g After three
[2:59:37] studies we do not need more
[2:59:37] analysis.
[2:59:38] We already have the information
[2:59:41] we need to decide at this point
[2:59:42] it is too expensive to continue
[2:59:46] to spend billions of dollars on
[2:59:46] consultants.
[2:59:51] It is way too expensive for
[2:59:51] the billions that the city
[2:59:55] would have to spend to try to.
[2:59:56] To provide this utility.
[3:00:00] It is important to know that
[3:00:01] the state of California public
[3:00:05] utilities Commission, the puc
[3:00:10] it says right there in the law
[3:00:11] is main responsibility is to
[3:00:15] protect ratepayers and also
[3:00:16] decide utility rates In so
[3:00:20] doing to protect ratepayers.
[3:00:24] They're supposed to protect us
[3:00:25] .
[3:00:25] They don't.
[3:00:29] It's supposed to decide utility
[3:00:34] rates within mind us consumers
[3:00:34] The puc needs to be reformed.
[3:00:39] It needs to be held accountable
[3:00:39] and I ask you to please
[3:00:44] inundate them with emails and
[3:00:45] phone calls and letters that
[3:00:48] they need to lower sd any rates
[3:00:53] not raise them.
[3:00:54] Forming San Diego community
[3:00:58] power was a good idea and sd
[3:00:59] Jeannie was in favor and you
[3:01:02] MAY be wondering why Why would
[3:01:03] they have been in favor?
[3:01:04] Because commercial utilities
[3:01:08] are not allowed to make a
[3:01:09] profit on what it costs them to
[3:01:13] buy the power to make
[3:01:13] electricity And so they handed
[3:01:17] this off gladly to the San
[3:01:18] Diego community power.
[3:01:22] Do you know that 95% of
[3:01:22] electric customers have signed
[3:01:26] up for San Diego community
[3:01:26] power?
[3:01:27] It's a good thing It's been
[3:01:31] very successful.
[3:01:32] It has millions of dollars in
[3:01:36] its reserve.
[3:01:36] The question is why have they
[3:01:41] not lowered their rates?
[3:01:42] We need to have them come in
[3:01:45] and answer that for us.
[3:01:46] Meantime, we need to stop
[3:01:50] spending on consultant reports
[3:01:50] .
[3:01:51] I think this last one was $3
[3:01:52] million.
[3:01:52] It's ridiculous.
[3:01:55] Is going to come out the same
[3:01:55] every time.
[3:01:59] It's very, very expensive And
[3:02:00] the city has 100 and $100
[3:02:01] million deficit It can't even
[3:02:05] meet And we're supposed to
[3:02:08] spend 8,000,000,008 billion 60
[3:02:09] billion to become an electric
[3:02:10] company?
[3:02:10] No, no, no.
[3:02:13] That doesn't make any sense at
[3:02:14] all.
[3:02:15] We cannot afford to be a power
[3:02:18] company In the meantime, as dg
[3:02:22] and his top executives and
[3:02:23] those of many other
[3:02:23] corporations in this nation
[3:02:27] need to decide how many
[3:02:28] millions of dollars a year do
[3:02:32] they need to live on?
[3:02:32] This is ridiculous.
[3:02:33] Just as my my colleague
[3:02:37] Councilmember Ella Rivera said,
[3:02:41] the guy in 2025 made $25
[3:02:42] million a year.
[3:02:42] It's ridiculous.
[3:02:47] Think if you only made a couple
[3:02:47] of million dollars a year how
[3:02:51] many rates could be lowered?
[3:02:52] Quite a few.
[3:02:52] Quite a few.
[3:02:53] And so I say to all the top
[3:02:56] executives of the corporations
[3:02:57] in this nation how much money
[3:03:04] do you really need at the cost
[3:03:08] of making your consumers poor?
[3:03:09] Greed is evil.
[3:03:14] Stop practicing it.
[3:03:14] >> Thank you.
[3:03:15] Council PRESIDENT All right.
[3:03:15] Thank you, Council member
[3:03:16] Campbell.
[3:03:19] We'll go next to council member
[3:03:19] Von Walbert.
[3:03:22] Thank you very much for your
[3:03:23] work today and for
[3:03:23] the presentation.
[3:03:24] Thank you for everyone who's
[3:03:28] come in today to express a very
[3:03:28] justified frustration over
[3:03:29] the fact that effigy enables
[3:03:32] continue to go up including our
[3:03:33] own workers who also don't want
[3:03:33] to pay that.
[3:03:37] And I want to thank the workers
[3:03:38] who came in, especially our
[3:03:39] veterans who served in Iraq and
[3:03:42] Afghanistan.
[3:03:42] I can't imagine what you've
[3:03:43] seen.
[3:03:43] You know, this past Memorial
[3:03:47] Day we just did a memorial
[3:03:47] commemorations only for folks
[3:03:51] who died in the Afghanistan and
[3:03:52] Iraqi wars because they were
[3:03:56] our generation.
[3:03:57] And so just know that you have
[3:03:58] sacrificed a lot in coming in
[3:03:58] and getting training from ibew
[3:04:01] which is one of the most
[3:04:02] incredible veterans transition
[3:04:03] employers in this country is
[3:04:07] fantastic And I want to thank
[3:04:08] you for continuing to do that
[3:04:08] work.
[3:04:09] So I know that we up here care
[3:04:09] about you.
[3:04:11] We care about union workers And
[3:04:11] I'm going to show you why what
[3:04:12] we're going to do.
[3:04:15] I also want to thank
[3:04:16] the environmentalist who came
[3:04:17] in San Diego 350 and everyone
[3:04:19] who's been trying to take away
[3:04:19] the monopoly power of this
[3:04:24] company as we should our our
[3:04:25] public power should not be a
[3:04:25] monopoly.
[3:04:28] We should not be paying $22
[3:04:28] million alone To the ceo
[3:04:33] Jeffrey Martin of Sempra last
[3:04:33] year.
[3:04:34] We just should none of us have
[3:04:37] a choice about whether or not
[3:04:38] we pay a fee.
[3:04:39] You need to keep our power on
[3:04:42] but I want everyone who's in
[3:04:42] the room all the union workers
[3:04:43] especially or anyone who works
[3:04:44] at a job to pay attention to
[3:04:44] this.
[3:04:47] This is a public website from
[3:04:48] the Office of Labor Management
[3:04:48] Standards.
[3:04:49] It's under the Department of
[3:04:51] Labor.
[3:04:52] You can check this website to
[3:04:53] see if your employer is paying
[3:04:56] union busters for the most
[3:04:57] part.
[3:04:57] We'll get to Jackson Lewis go
[3:04:58] to the next slide please.
[3:05:01] We did check this website when
[3:05:02] we had to renew the franchise
[3:05:05] agreement as council PRESIDENT
[3:05:06] LaCava said and we all got
[3:05:07] elected up here.
[3:05:07] We were forced with this
[3:05:11] renewal for stg and our
[3:05:12] predecessors didn't do anything
[3:05:13] about it and left it in our
[3:05:17] laps This is a formal Clinton
[3:05:17] report.
[3:05:18] You can see it highlighted.
[3:05:19] It's from c, g and e Studio gas
[3:05:20] and electric from 2019.
[3:05:21] Please go to the next slide.
[3:05:22] This is a public report.
[3:05:25] They have two to show if
[3:05:26] they're going to hire union
[3:05:29] busters they are public facing
[3:05:30] in 2019 as you paid tens of
[3:05:30] thousands of dollars of our
[3:05:33] rate payer money to hire crews
[3:05:34] and associates to be their
[3:05:35] independent labor consultant
[3:05:39] who is known nationwide to be
[3:05:39] one of the biggest union
[3:05:40] busters in the nation.
[3:05:43] They were trying to rent steel
[3:05:44] you need from hiring from
[3:05:44] unionizing the coal center
[3:05:45] workers And I know ibew came to
[3:05:49] the call center Workers Aid and
[3:05:49] made sure this didn't happen
[3:05:50] before the next slide please.
[3:05:53] This is the one from 2018 which
[3:05:54] you can see Crews Associates
[3:05:56] was paid This one I think was
[3:05:57] signed by Scott Crider who is
[3:06:01] now I believe the ceo of cgt.
[3:06:01] They paid them $33,000 to hire
[3:06:06] union busters to fight
[3:06:06] The unionized work to cgt had
[3:06:07] been hiring union busters And
[3:06:10] when they came to this Dyess to
[3:06:11] get a renewal I required cgt
[3:06:12] their ceo to say they would not
[3:06:14] hire union busters again with
[3:06:19] our money And you agreed?
[3:06:20] I think at the end of
[3:06:23] the slides you do down And so
[3:06:24] I'm really upset to see that
[3:06:25] when ibew tried to get some of
[3:06:29] their supervisor employees who
[3:06:30] don't actually supervise anyone
[3:06:30] into the union which is a
[3:06:31] common union busting tactic for
[3:06:34] an employer to say they have
[3:06:35] supervisory responsibilities
[3:06:39] which they don't You hired
[3:06:40] Jackson Lewis but guess what?
[3:06:40] You don't have to report that
[3:06:41] because there's a loophole in
[3:06:44] federal law that says if you
[3:06:45] hire a lawyer to you your union
[3:06:46] busting you can call it legal
[3:06:49] services.
[3:06:50] Congress can change this law
[3:06:50] and I hope they do.
[3:06:54] They haven't anyway, I am sick
[3:06:55] and tired of seeing cgt crush
[3:06:55] its workers at our expense and
[3:06:58] I want you to know that
[3:06:59] everyone on this diet is going
[3:07:00] to work hard to make sure
[3:07:00] whatever transition happens
[3:07:03] union jobs are protected.
[3:07:04] You do incredibly hard work at
[3:07:05] a high voltage and none of us
[3:07:09] are trying to do and we
[3:07:10] respected value for that.
[3:07:11] If you need me on a strike line
[3:07:11] call me.
[3:07:12] I'll be there.
[3:07:18] That said, I'm questions First
[3:07:24] of all what would taking over
[3:07:24] the power structure look
[3:07:25] the power infrastructure look
[3:07:28] like Obviously you need is not
[3:07:29] willing to sell their assets.
[3:07:30] So legally what would the city
[3:07:33] do if we were to do that?
[3:07:34] >> So if we use the San
[3:07:35] Francisco model as the current
[3:07:39] Calif fornia template San
[3:07:42] Francisco City County they're
[3:07:43] all one thing did make an offer
[3:07:48] to pge to purchase the wires in
[3:07:49] their system and you kind of
[3:07:50] didn't pick up the phone So San
[3:07:54] Francisco petitioned to
[3:07:55] the cpsc which regulates pge to
[3:07:59] require pge to to establish a
[3:08:00] purchase price.
[3:08:00] >> So that is as Scott
[3:08:05] mentioned, the biggest variable
[3:08:06] about how all of this modeling
[3:08:06] and economics really works
[3:08:07] where feasible, where your cash
[3:08:11] flow is, etc. That is now a
[3:08:11] process that is ongoing.
[3:08:12] The first decision came out in
[3:08:16] the fall and that set
[3:08:17] the framework of what has to
[3:08:17] happen afterwards which
[3:08:22] includes prey's appraisals of
[3:08:23] the system by both parties,
[3:08:24] multiple different valuations
[3:08:27] and a basic set of principles
[3:08:27] regarding things like just
[3:08:32] compensation etc. So we know
[3:08:33] that that step is in there.
[3:08:38] >> There is our current
[3:08:39] understanding and I will I am
[3:08:43] not a lawyer so a grain of salt
[3:08:44] a high probability that at some
[3:08:45] point an action like this would
[3:08:46] probably need to go to
[3:08:49] the ballot.
[3:08:50] And so one of the I would say
[3:08:51] the next step that moves this
[3:08:55] past feasibility if there is
[3:08:56] interest in continuing this
[3:08:56] effort is moves it into
[3:09:00] the kind of political
[3:09:05] regulatory legal area.
[3:09:06] >> What that looks like really
[3:09:07] frankly is a discussion and
[3:09:11] guidance that will be given to
[3:09:12] staff from discussions between
[3:09:13] the mayor's office and council
[3:09:13] Randi, I don't know if you have
[3:09:19] anything to add.
[3:09:20] I would say that there is not
[3:09:24] currently allocated resources
[3:09:25] to go hire more consultants or
[3:09:26] staff resources to go do a lot
[3:09:31] of that work in this current
[3:09:31] fiscal year.
[3:09:32] So our intention is to watch
[3:09:32] closely what happens with
[3:09:36] the San Francisco case.
[3:09:37] Well not exactly the same
[3:09:37] scenario as what would be
[3:09:42] the case in San Diego for a
[3:09:43] number of different reasons
[3:09:44] would certainly set a lot of
[3:09:44] precedents in terms of
[3:09:48] the valuation methodology and
[3:09:48] the process that the city of
[3:09:49] San Diego would go through.
[3:09:50] I think there's other decisions
[3:09:54] that would need to be made if
[3:09:54] the city were to move forward,
[3:09:55] what would be the structure of
[3:09:55] the new entity?
[3:09:56] Would that be a special
[3:09:59] district as recommended in
[3:09:59] the report?
[3:10:00] What type of a special district
[3:10:01] would that be?
[3:10:05] That MAY or MAY not require a
[3:10:06] ballot measure or a vote of
[3:10:07] the people depending on how
[3:10:07] that structured MAY or MAY not
[3:10:11] require less co component.
[3:10:12] Again, I'm also not an attorney
[3:10:13] so I would defer to them on
[3:10:13] that.
[3:10:14] But there's a number of
[3:10:14] different decisions that need
[3:10:17] to be made about the structure
[3:10:18] and the process.
[3:10:18] But I think that the highest
[3:10:19] priority for us since this is
[3:10:23] kind of the new process
[3:10:24] established by the state is
[3:10:25] through this cpc is to really
[3:10:25] monitor closely what happens in
[3:10:30] the San Francisco pge case.
[3:10:30] Okay.
[3:10:31] i have a question for a
[3:10:32] question about the district.
[3:10:35] So I, I, I do believe that
[3:10:35] the power system should be
[3:10:41] governed by a nonprofit.
[3:10:42] I do not believe the city of
[3:10:42] San Diego as a beautiful
[3:10:43] corporation is ready to take
[3:10:43] this on.
[3:10:47] We can barely operate a water
[3:10:47] department.
[3:10:48] We are struggling to figure out
[3:10:49] if we can deploy our own
[3:10:49] ambulance system if we have to
[3:10:53] bring that in-house.
[3:10:54] But I do believe there's
[3:10:55] another opportunity and that is
[3:10:55] what Sacramento did with
[3:11:01] the Sacramento Municipal
[3:11:02] Utility District And this is
[3:11:02] what I hope the advocates
[3:11:03] listen to the city ceo you you
[3:11:06] get a sales tax passed last
[3:11:06] year because voters didn't
[3:11:07] trust us.
[3:11:08] I think the better option is
[3:11:08] not to saddle this on the city
[3:11:11] the better option is to create
[3:11:12] a public utility district which
[3:11:13] is run by experts And but
[3:11:19] the only way anyone would vote
[3:11:20] for this and I would vote for
[3:11:20] this is if there was concrete
[3:11:21] new protections for union
[3:11:22] workers and they should have a
[3:11:24] role in the ballot measure if
[3:11:25] we're ever to get to that point
[3:11:26] because there's no way I would
[3:11:26] You're working with us and we
[3:11:29] need our workers to provide
[3:11:30] the power we need anyway.
[3:11:30] So how would that process look
[3:11:34] like?
[3:11:35] >> As Randy mentioned,
[3:11:36] the special district process
[3:11:40] looks different depending on
[3:11:40] one or multiple parties going
[3:11:41] after it.
[3:11:41] This is all kind of outlined in
[3:11:46] California Public utilities
[3:11:47] code so various structures
[3:11:52] require votes by council and
[3:11:53] then going to the ballot Some
[3:11:54] of them it can be go to
[3:11:54] the ballot directly.
[3:11:59] So a lot of it is the structure
[3:11:59] that is put in place and
[3:12:00] therefore the special district
[3:12:01] is defined by public utility
[3:12:04] code.
[3:12:05] I'm happy to follow up with you
[3:12:06] with those specific areas of
[3:12:06] law.
[3:12:06] I do not want to even attempt
[3:12:11] to quote them off the cuff yet.
[3:12:11] >> Sounds like a lack of
[3:12:12] question.
[3:12:16] Understood that a question
[3:12:16] about this valuation I have a
[3:12:17] feeling it's going to be much
[3:12:18] higher than what's even the $7
[3:12:23] billion just because you know I
[3:12:23] don't think you do You wouldn't
[3:12:24] willingly sell its assets which
[3:12:27] means it would go to some kind
[3:12:28] of eminent domain for closure.
[3:12:28] I don't know.
[3:12:29] And that would be litigated
[3:12:30] every step of the way which
[3:12:34] would increase the cost
[3:12:34] exponentially.
[3:12:35] So just I have a feeling that
[3:12:36] what's going to happen in San
[3:12:39] Francisco a wealthy the one
[3:12:40] thing I do give you credit for
[3:12:45] every time we're here is
[3:12:46] the wildfire work they are
[3:12:47] doing which the Witch Creek
[3:12:47] Fire didn't have to happen to
[3:12:51] have that led down that path by
[3:12:51] the emergency operation center
[3:12:52] to see if you need to start up
[3:12:53] is state of the art.
[3:12:57] It's incredible.
[3:12:58] It's catching fires left and
[3:12:59] right And I appreciate the fact
[3:12:59] that they've also invested in
[3:13:02] wildfire attack helicopters.
[3:13:03] So does this study also
[3:13:04] encapsulate the cost of taking
[3:13:05] over the emergency operations
[3:13:08] center Because we cannot take
[3:13:09] over utility if we're not going
[3:13:10] to protect us from wildfires.
[3:13:14] It doesn't because the vast
[3:13:14] majority of the area that
[3:13:20] the eoc monitors is not within
[3:13:21] the city of San Diego.
[3:13:21] It does imagine a portion of
[3:13:22] the costs that currently are
[3:13:26] expended within wildfire
[3:13:26] mitigation as a part of
[3:13:27] the overall operating costs and
[3:13:28] thus a revenue requirement for
[3:13:33] the utility as well as pieces
[3:13:33] of you know there's someone
[3:13:34] mentioned liability so there's
[3:13:38] liability insurance etc. So
[3:13:39] that would need to be carried
[3:13:39] for those areas that are
[3:13:40] subject to it.
[3:13:45] But again I think it's
[3:13:45] remembering that if you're
[3:13:46] separating out the system, what
[3:13:47] now there also then would need
[3:13:50] to be coordination between
[3:13:51] the two and that kind of goes
[3:13:52] to about just compensation
[3:13:57] piece of how much has already
[3:13:58] been paid for by San Diego
[3:14:03] ratepayers how much would
[3:14:04] therefore need to be And some
[3:14:04] of that is also subject to you
[3:14:08] know the cpc as was mentioned
[3:14:09] as dgt makes a revenue request
[3:14:10] specifically within
[3:14:10] the wildfire mitigation fund
[3:14:11] that includes the cost of
[3:14:15] operation of the that's the cpc
[3:14:16] then decides how much of that
[3:14:17] can and cannot be rate based or
[3:14:17] should or should not be
[3:14:20] expended.
[3:14:21] And so what role for
[3:14:27] the municipal utility in an
[3:14:28] area that is definitely at risk
[3:14:28] because of fires in not its
[3:14:33] territory pays and plays in
[3:14:34] the operations to ensure that
[3:14:34] those fires don't get anywhere
[3:14:39] near the territory would all be
[3:14:40] part of the negotiations
[3:14:40] between the parties.
[3:14:41] So the feasibility study
[3:14:45] incorporates modeled costs for
[3:14:45] that but it doesn't outline for
[3:14:50] a whole bunch of reasons how
[3:14:51] specifically those negotiations
[3:14:51] would go because simply we
[3:14:52] can't speak for the other side
[3:14:52] of the table.
[3:14:56] Okay, got it.
[3:14:57] But that would be something
[3:14:58] that's incredibly important
[3:14:58] that needs to be thought about.
[3:15:04] Absolutely.
[3:15:05] Yeah, I was I suppose you would
[3:15:06] require utility to do something
[3:15:11] similar So we satellite involve
[3:15:12] ours of another state but there
[3:15:12] are many things I wish the cbc
[3:15:13] would do.
[3:15:13] Okay.
[3:15:13] Okay.
[3:15:18] My last my colleagues have
[3:15:19] covered a lot of this.
[3:15:20] I mean what about the fact that
[3:15:23] there's an 8.6% request for a
[3:15:24] rate hike and the feasibility
[3:15:25] study had anticipated four per
[3:15:25] year?
[3:15:29] You know what is this large
[3:15:30] hike that I see Judy want to
[3:15:31] add to our bills once again due
[3:15:32] to the feasibility study?
[3:15:32] Sure.
[3:15:35] So I think some of the thing to
[3:15:36] remember is over a 30 year
[3:15:37] horizon we specifically picked
[3:15:39] 4% one because historically in
[3:15:40] the past two grc that's
[3:15:40] approximately been the end
[3:15:41] decision.
[3:15:46] So cgu usually asks for more
[3:15:47] money and then it gets cut down
[3:15:51] through the grc process.
[3:15:52] So fundamentally if you look at
[3:15:53] that sensitivity graph,
[3:15:57] the higher the rate increase
[3:15:58] annually for us, Jenny,
[3:15:59] the more cumulative benefit
[3:16:04] there would be for utility that
[3:16:04] is only replacing its revenue
[3:16:05] requirements, right?
[3:16:10] And so you can kind of say if
[3:16:10] their rates are significantly
[3:16:11] higher than they're saying
[3:16:12] their revenue requirement is
[3:16:15] significantly higher than
[3:16:15] the That's what that
[3:16:16] distinction is because this is
[3:16:17] just their proposal.
[3:16:21] We don't know what the cpc is
[3:16:22] going to decide And because it
[3:16:23] is frankly only a four year
[3:16:26] picture and we're trying to do
[3:16:26] a 30 year model providing a
[3:16:32] conservative estimate is gives
[3:16:32] us and it's still feasible at
[3:16:37] 4% then at 6% it is also
[3:16:37] feasible from an economic
[3:16:38] perspective at 8% it is still
[3:16:39] feasible from an economic
[3:16:43] perspective.
[3:16:43] So it's 8% increase in 20 I'm
[3:16:44] sorry it's overall in
[3:16:49] the system it's actually a 5%
[3:16:50] increase in f y 28 sorry in
[3:16:54] 2028 from 2027 rates So we
[3:16:55] haven't seen those yet.
[3:16:59] 2028 is 8.5% and then 20 sorry
[3:17:00] 2029 is 8.5% and then 2030 and
[3:17:00] 2031 about 5.5%.
[3:17:04] So again we're trying to blend
[3:17:05] out a 30 year annual rate
[3:17:09] increase in order to make those
[3:17:10] numbers line up accurately and
[3:17:11] ensure when we say it's
[3:17:11] economically feasible you're
[3:17:16] doing that with a responsibly
[3:17:22] conservative number on
[3:17:23] the Jenny side so you're not
[3:17:23] overpromising savings that MAY
[3:17:28] or MAY not manifest.
[3:17:28] Okay.
[3:17:29] Understood.
[3:17:29] Thank you.
[3:17:30] Thank you for the update.
[3:17:31] Thank you for going down this
[3:17:35] incredibly complex study and
[3:17:35] what we're trying to do to at
[3:17:36] least give the city and
[3:17:37] the residents who live here
[3:17:42] some kind of negotiating power
[3:17:42] over city.
[3:17:43] You know, it's very hard to do
[3:17:47] that when did the monopoly but
[3:17:48] it has to include protections
[3:17:49] for our workers who work very
[3:17:49] hard to make sure the lights
[3:17:52] and the gas are literally
[3:17:53] turned on every day And it
[3:17:54] needs to account for
[3:17:58] the catastrophic litigation
[3:17:59] costs that are going to come
[3:17:59] with trying to separate from
[3:18:00] this.
[3:18:00] But again, that's why I think
[3:18:05] the utility district would be
[3:18:06] better to take this on to
[3:18:07] the city of San Diego itself
[3:18:07] because that could be a fight
[3:18:11] the good fight the city and I
[3:18:12] don't think we can do this on
[3:18:13] our own in a city needs to
[3:18:16] charge lower rates.
[3:18:17] We have no ability to handle
[3:18:18] that here at the city of San
[3:18:23] Diego We did Under California
[3:18:23] state law it is Sacramento to
[3:18:24] decide how and when a city
[3:18:28] charges its rates.
[3:18:29] However, in the next few years
[3:18:29] in 20 2030 our franchise
[3:18:30] agreement could be opened up
[3:18:35] again by the future City
[3:18:36] Council who sits here.
[3:18:36] I will be termed out.
[3:18:37] Many of us will be turned out
[3:18:39] but we are trying to do is make
[3:18:40] sure that 2030 if the future
[3:18:40] Council wants to put
[3:18:41] the pressure on cgt to lower
[3:18:45] rates they will now be able to
[3:18:46] do that because of the work
[3:18:46] we're doing going down this
[3:18:47] road with the public
[3:18:48] marketability study and we need
[3:18:52] to continue to strengthen our
[3:18:52] hand to lower rates for our
[3:18:53] state.
[3:18:53] You need to they charge too
[3:18:54] much.
[3:18:57] Thank you.
[3:18:57] All right.
[3:18:58] Thank you, gentlemen.
[3:18:59] Bonneville We'll go next to
[3:18:59] Councilmember Flippen.
[3:19:01] Thank you, Council PRESIDENT.
[3:19:02] First of all, thank you to
[3:19:03] everybody who provided public
[3:19:07] comment this afternoon.
[3:19:08] I took a lot of notes, very
[3:19:09] interesting comments from
[3:19:10] everybody here appreciated that
[3:19:13] I have a few questions for our
[3:19:14] consultant There is it says
[3:19:19] the potential for average
[3:19:19] customer savings of $500 a year
[3:19:24] or which would equate to about
[3:19:25] $42 about the end of the 30
[3:19:26] year study period is that in
[3:19:31] today's dollars 30 years from
[3:19:38] now $42 MAY not seem like that
[3:19:39] much.
[3:19:39] So if you say the potential
[3:19:40] savings then would be
[3:19:42] the equivalent of what $42
[3:19:43] about this today or would it be
[3:19:44] $42.30 years from now to
[3:19:49] the extent the analysis is
[3:19:50] looking at a sort of average
[3:19:50] bill, it would be in today's
[3:19:51] dollars We're looking at
[3:19:52] the percentage that were
[3:19:54] proposed or was projected to be
[3:19:55] relative to the savings.
[3:20:00] And looking at the flip side,
[3:20:00] you talk about the risk What
[3:20:01] would be the worst case
[3:20:06] scenario if things went south
[3:20:06] in term in real terms what bad
[3:20:12] things could happen to the city
[3:20:13] in terms of what bad things I
[3:20:19] mean, you know, who knows,
[3:20:19] right?
[3:20:20] I mean you could say that that
[3:20:25] I mean I don't really know that
[3:20:25] to tell you the truth.
[3:20:26] But what bad things could
[3:20:27] happen is that is that the you
[3:20:27] know, the utility could incur
[3:20:30] you know, costs like any other
[3:20:31] utility incurred costs and have
[3:20:32] to pass those costs on to a
[3:20:37] ratepayer right Just in terms
[3:20:38] of commodity cost, in terms of
[3:20:38] all the costs that it takes
[3:20:43] operating ability there's
[3:20:44] there's always a potential
[3:20:48] those costs could exceed beyond
[3:20:49] what anybody could imagine and
[3:20:50] then in which case those costs
[3:20:51] would have to be recovered by
[3:20:54] ratepayers.
[3:20:54] Okay.
[3:20:55] So essentially you're not
[3:20:56] seeing a lot of financial risk
[3:21:02] for the city as I mean it's a
[3:21:02] poor entity in of itself.
[3:21:03] You would see the financial
[3:21:06] risk as being contained within
[3:21:07] the utility structure.
[3:21:12] Okay.
[3:21:13] You've prepared a 200 page
[3:21:14] report and analysis on
[3:21:19] the feasibility Based on what
[3:21:20] you know in your expertise, do
[3:21:20] you think that San Diego should
[3:21:24] go to a minimal utility?
[3:21:25] I believe the report suggests
[3:21:26] that it's financially feasible
[3:21:26] to do so.
[3:21:30] Okay.
[3:21:31] I will turn now to the Office
[3:21:31] of the Independent Budget
[3:21:36] Analyst MR. Boer, your thoughts
[3:21:40] on this?
[3:21:47] My thoughts on this are many So
[3:21:48] I will tell you what I've been
[3:21:49] telling sort of leading up to
[3:21:49] this meeting.
[3:21:50] >> I've had many meetings I've
[3:21:54] met with general Services, I've
[3:21:55] met with Public power San
[3:21:55] Diego, I've met with San Diego
[3:21:59] Gas and Electric all three
[3:21:59] entities the same thing.
[3:22:00] We've had three studies.
[3:22:01] They're all directionally
[3:22:05] pointing the same direction
[3:22:06] which is yeah, it's most likely
[3:22:06] economically feasible.
[3:22:07] The questions that are still
[3:22:11] being raised how much is it
[3:22:11] going to cost?
[3:22:12] What's the revenue projections
[3:22:12] going to look like?
[3:22:17] Those types of things Another
[3:22:18] study is not going to tell you
[3:22:19] because there are things that
[3:22:19] need to be worked out either
[3:22:23] through the cpc proceeding or
[3:22:23] somebody writing down on a
[3:22:24] ballot measure What is this
[3:22:25] thing going to look like?
[3:22:30] What is structure going to be
[3:22:31] and how is it going to operate
[3:22:32] And then sending that ballot
[3:22:32] measure to the people for a
[3:22:33] decision.
[3:22:36] So at this point I think
[3:22:36] the study is sound.
[3:22:37] It's a sound of the committee.
[3:22:42] It's showing a path that could
[3:22:42] be taken with known risks At
[3:22:43] this point as Heather kind of
[3:22:48] alluded to earlier, it's now a
[3:22:48] policy decision on what
[3:22:49] the people want to do.
[3:22:54] How would you want to frame it
[3:22:55] and how would you want to craft
[3:22:55] If you want to craft a ballot
[3:22:56] measure, how is that going to
[3:23:00] look That will start answering
[3:23:01] a lot of the questions that are
[3:23:01] here today but it's kind of
[3:23:05] going above the staff paper of
[3:23:06] you know what they can answer
[3:23:12] for you.
[3:23:12] Okay.
[3:23:13] Thank you, Council PRESIDENT.
[3:23:13] All right.
[3:23:14] Thank you, gentlemen.
[3:23:17] Whitburn we'll go next to
[3:23:18] Council member Campion Thank
[3:23:19] you very much, Council
[3:23:19] PRESIDENT And thank you to
[3:23:23] the public for your
[3:23:23] participation today.
[3:23:24] Obviously a very big
[3:23:25] conversation for our city
[3:23:29] talking about over $10 billion
[3:23:30] in one way or another in cost
[3:23:35] and potentially more than that
[3:23:35] in savings.
[3:23:36] I want to get to the heart of
[3:23:41] some key questions that keep
[3:23:42] coming up in this is it's not
[3:23:43] very often we have both sides
[3:23:46] of the debate here to be able
[3:23:47] to answer them.
[3:23:48] I think the first thing I want
[3:23:48] to point out is that we're not
[3:23:49] going to get anywhere without
[3:23:53] our workers who repair
[3:23:54] the lines and make sure our
[3:23:54] energy gets to our hospitals.
[3:23:59] Schools and homes are taken
[3:24:00] care of and that their jobs are
[3:24:00] protected because they're just
[3:24:04] too many livelihoods at risk to
[3:24:05] make sure that they don't don't
[3:24:06] get to continue their careers,
[3:24:09] have their retirements
[3:24:10] protected and their families
[3:24:16] cared for.
[3:24:17] The representative from sd
[3:24:18] Eugenie would come to that
[3:24:18] answer a few questions just
[3:24:25] very directly.
[3:24:25] Thank you.
[3:24:26] MRS..
[3:24:30] Thank you for being here.
[3:24:31] Given the report that's in
[3:24:32] front of us very explicitly and
[3:24:37] directly, what is the issue
[3:24:38] that you believe makes whether
[3:24:42] it's municipal ization or a
[3:24:43] nonprofit utility which are
[3:24:49] very close to the same in this
[3:24:49] debate?
[3:24:50] What's what do you think is
[3:24:54] the most risky part of that
[3:24:55] plan?
[3:24:55] Sure.
[3:24:56] I think the riskiest part of
[3:24:56] the plan is the cost.
[3:25:01] I don't think this report
[3:25:01] captures the full cost to
[3:25:02] acquire our assets And as I was
[3:25:07] talking about the exit fee to
[3:25:07] make other customers whole.
[3:25:11] So if you even take the 9
[3:25:12] billion just to acquire
[3:25:12] the assets, separate
[3:25:17] the separate the system and
[3:25:17] then ensure that the other
[3:25:18] cities in our territory.
[3:25:18] Chula Vista Imperial Beach
[3:25:24] Alcohol and Carlsbad don't see
[3:25:25] a significant rate increase
[3:25:29] when the city leaves The city
[3:25:30] of San Diego would have to pay
[3:25:30] a significant fee to ensure
[3:25:35] that that that doesn't happen.
[3:25:35] That would be billions of
[3:25:36] dollars.
[3:25:37] So you're taking an asset to
[3:25:41] purchase the assets of $9.3
[3:25:41] billion and then several
[3:25:42] billion dollars on top of that.
[3:25:47] The feasibility study itself
[3:25:48] says that it's $7.5 billion.
[3:25:49] There will be a rate increase
[3:25:51] for the first 12 years.
[3:25:52] Then at some point rates going
[3:25:56] to flatten out And in 30 years
[3:25:56] there's a very de minimus
[3:25:57] decrease in rates.
[3:25:57] I can just things that we can
[3:26:01] be doing right now to reduce
[3:26:02] rates that we'd love to work
[3:26:02] with the City council on.
[3:26:03] I think I've talked to many of
[3:26:07] your officers about this Almost
[3:26:07] 30% of our bills are made up of
[3:26:08] state mandates and we would
[3:26:13] love to work with the city
[3:26:13] the city council.
[3:26:14] We're happy to come in to talk
[3:26:14] to you.
[3:26:15] Let's work at this at
[3:26:19] Sacramento and take these cost
[3:26:19] ineffective things out of our
[3:26:20] bills would immediately reduce
[3:26:25] bills JANUARY first.
[3:26:26] Okay.
[3:26:26] Thank you.
[3:26:26] Okay.
[3:26:30] From public power San Diego
[3:26:31] the issue of the cost.
[3:26:32] But when I looked at
[3:26:37] the spreadsheet realizing that
[3:26:42] 4% was the 4%, was it assumed
[3:26:42] increase in electrical rates
[3:26:43] annually?
[3:26:43] Right.
[3:26:47] I think far higher than that in
[3:26:47] the last ten years.
[3:26:48] Right.
[3:26:48] Almost a doubling in 13 years.
[3:26:49] 14 years, something like that.
[3:26:52] Correct?
[3:26:53] Generally speaking, yes.
[3:26:53] Okay.
[3:26:54] So the cost of the system
[3:26:58] relative to the cost to
[3:26:59] the ratepayers that we're
[3:27:03] seeing someone from San Diego,
[3:27:04] what would you address that
[3:27:04] issue related to
[3:27:05] the disassociation cost that
[3:27:08] we're going to have to pay to
[3:27:09] the other municipalities
[3:27:12] Because I know that one model
[3:27:13] of this is to not take over
[3:27:14] the transmission.
[3:27:14] It's only to take over
[3:27:17] the distribution.
[3:27:18] What's your response to what
[3:27:24] MRS. Just said about that fee
[3:27:24] We'd have to pay other cities.
[3:27:25] Well there is no fee yet that
[3:27:29] we might pay.
[3:27:30] I think I would side with I
[3:27:31] think Heather's comment that
[3:27:34] all of this would be a
[3:27:35] negotiation.
[3:27:35] We don't know where that's
[3:27:36] going to land.
[3:27:39] We talked about how much fire
[3:27:40] exposure we have as a city That
[3:27:44] would be it's partly in
[3:27:45] the model already but this idea
[3:27:50] that there are billions pending
[3:27:51] that we would have to pay is
[3:27:55] based on nothing at this point
[3:27:56] That would be something we
[3:27:56] would discuss.
[3:28:01] But keep in mind the electrical
[3:28:01] workers would stay.
[3:28:02] They would be maintaining
[3:28:02] the system.
[3:28:03] I just wanted you to focus on
[3:28:06] that part portion that she
[3:28:06] brought up.
[3:28:07] I know there's lots of
[3:28:07] components that have been
[3:28:08] brought up to date but you're
[3:28:11] telling me we just don't know
[3:28:12] what that true cost to
[3:28:12] the associate would be here?
[3:28:13] Would there be no cost if we
[3:28:14] just did distribution instead
[3:28:17] of taking over transmission
[3:28:17] lines or the beauty of doing
[3:28:18] distribution?
[3:28:22] Not only is we would have no
[3:28:23] lack of exposure so we have
[3:28:24] years of delay to to look at
[3:28:27] this but it's important to know
[3:28:28] that those electrical workers
[3:28:32] would be maintaining and
[3:28:33] operating the system in San
[3:28:33] Diego.
[3:28:38] Those costs wouldn't be costs
[3:28:38] that other cities would bear.
[3:28:42] We would bear our own cost So
[3:28:43] it's very much to be negotiated
[3:28:44] what additional costs we might
[3:28:47] have to bear as well.
[3:28:48] Okay.
[3:28:48] One second.
[3:28:49] Given that our business manager
[3:28:49] for these workers here in
[3:28:53] the room, MR. Ferryman, can I
[3:28:54] ask you a quick question
[3:28:55] related to that component of
[3:28:55] this potential model?
[3:28:59] What impact on workers could
[3:29:00] you guys work on all
[3:29:00] the electrical lines We're
[3:29:03] going to get some I'm here with
[3:29:03] Nate.
[3:29:04] Okay.
[3:29:08] Thank you for being here.
[3:29:08] The transmission versus
[3:29:12] distribution concept here
[3:29:13] the transmission lines cross
[3:29:14] municipal boundaries that I
[3:29:18] understand could open us up to
[3:29:18] a price We have to pay other
[3:29:19] municipalities but just a
[3:29:19] distribution.
[3:29:22] How many workers of that would
[3:29:23] it impact that you represent?
[3:29:27] I would say anywhere from 100
[3:29:28] to 200 directly but then you're
[3:29:29] reducing the size of
[3:29:34] the primary group at as many as
[3:29:35] your lowering their bargaining
[3:29:37] strength indirectly about 1800
[3:29:38] directly about 1 to 200.
[3:29:39] Okay, understood.
[3:29:43] So MRS. If we did a
[3:29:47] distribution model as opposed
[3:29:48] to taking over any transmission
[3:29:49] lines, would we still be
[3:29:53] exposed to those cut off fees
[3:29:58] or or exit fees please?
[3:29:58] Absolutely.
[3:29:59] If you're taking out a portion
[3:30:00] of our system and a portion of
[3:30:03] our customers, those costs that
[3:30:04] are fixed costs are still going
[3:30:05] to need to be spread across
[3:30:08] the remaining customers And now
[3:30:09] you no longer have the city of
[3:30:13] San Diego as part of that as
[3:30:13] part of those customers paying
[3:30:14] for those other costs.
[3:30:15] So absolutely if you separate
[3:30:18] the distribution cost out,
[3:30:18] the remaining customers will
[3:30:19] still see an increased cost.
[3:30:23] Okay.
[3:30:24] Transmission is where sd Genie
[3:30:24] makes its profit.
[3:30:28] Correct?
[3:30:29] I don't understand.
[3:30:33] So generation of the energy you
[3:30:33] have to sell it at the value it
[3:30:34] costs you to do it So there's
[3:30:35] no profit on the actual
[3:30:37] creation of it.
[3:30:38] The profit margin comes from
[3:30:39] the transmission cost from
[3:30:42] where it's generated out to
[3:30:42] the customers, correct?
[3:30:43] Well, the profit comes from
[3:30:47] both the distribute and
[3:30:47] the transmission.
[3:30:47] Okay.
[3:30:48] So it's from our infrastructure
[3:30:52] that we build everything from
[3:30:52] that batteries, transmission
[3:30:53] lines, distribution lines It's
[3:30:57] the entire infrastructure
[3:30:57] system.
[3:30:58] Okay.
[3:30:58] I guess a question as it
[3:30:59] relates to the economics of
[3:31:06] this is the transmission
[3:31:07] crosses multiple cities, maybe
[3:31:08] even multiple counties, right?
[3:31:08] Absolutely.
[3:31:08] Okay.
[3:31:12] So there's a profit that's
[3:31:12] built into that component that
[3:31:13] goes to the entire system.
[3:31:17] But after it gets to a
[3:31:18] distribution hub say in Sierra
[3:31:19] mesa in my district and down to
[3:31:21] the homes, then there's a
[3:31:21] different profit component
[3:31:25] that's part of that correct?
[3:31:25] Yes.
[3:31:26] Okay.
[3:31:26] It's the same concept though.
[3:31:27] Okay.
[3:31:30] When the infrastructure is
[3:31:31] built we are making the profit
[3:31:31] on building the infrastructure
[3:31:34] whether it's transmission or
[3:31:35] distribution.
[3:31:35] Okay.
[3:31:36] I guess I'm wondering is why
[3:31:40] would why would we have to pay
[3:31:41] an exit fee after the energy
[3:31:41] already crosses into the city
[3:31:45] of San Diego to a distribution
[3:31:46] center And and then so we'd
[3:31:50] have to pay to la Masons and
[3:31:54] people from Poway and other
[3:31:55] cities when it's crossed over
[3:31:56] the line it's now in the city
[3:31:59] And then the utility
[3:32:00] the nonprofit utility would
[3:32:01] ostensibly take control of it
[3:32:04] at that point.
[3:32:05] So Genie would still be making
[3:32:05] a profit from the transmission
[3:32:09] And at that point it's not
[3:32:10] really affecting the Masons and
[3:32:14] folks from power would it?
[3:32:14] Right.
[3:32:15] But there's fixed costs what
[3:32:15] you just said.
[3:32:16] Right.
[3:32:18] Well I'm sorry.
[3:32:18] Don't catch me.
[3:32:19] I'll explain it.
[3:32:23] There are fixed costs across
[3:32:23] the entire system.
[3:32:24] Don't build our system
[3:32:24] including the distribution
[3:32:28] system.
[3:32:28] City boundaries only.
[3:32:28] Okay?
[3:32:29] You don't say We're building it
[3:32:30] out for La mesa.
[3:32:33] Done Now to do another foot in
[3:32:33] San Diego.
[3:32:37] So the distribution system also
[3:32:37] crosses the borders So just
[3:32:38] cutting it off there's still
[3:32:42] fixed costs that go both ways
[3:32:43] And so to serve the system as a
[3:32:46] whole So you're taking our
[3:32:47] customers out of the city of
[3:32:48] San Diego out of the system and
[3:32:52] there are still fixed costs
[3:32:52] that will be part of
[3:32:53] the distribution and
[3:32:53] transmission system that would
[3:32:56] then be shouldered by
[3:32:57] the remaining customers no
[3:32:57] longer the customers from
[3:33:01] the city of San Diego.
[3:33:02] But if a transmission line
[3:33:02] crosses from some other county
[3:33:06] or part of the part of
[3:33:06] the county into our city and
[3:33:07] we've disassociated from
[3:33:11] the ecosystem as you're
[3:33:12] pointing out, it doesn't seem
[3:33:16] to me that la Masons would pay
[3:33:16] for any component of it getting
[3:33:17] to the distribution center and
[3:33:20] on and we'd be buying
[3:33:21] the distribution center from
[3:33:22] you at that point.
[3:33:26] So are we paying for la Masons
[3:33:30] and people in power is I see
[3:33:30] this one here You're nodding
[3:33:31] your head clear this up for me
[3:33:32] because it seems to me that
[3:33:35] once it crosses into our city
[3:33:36] gets to a place that the public
[3:33:39] utility would have purchased it
[3:33:39] .
[3:33:40] I understand the fixed cost
[3:33:40] component but if we bought it
[3:33:44] from MR. Genie and it's being
[3:33:45] owned publicly, why would there
[3:33:49] be a further fixed cost to it?
[3:33:49] Okay, so let me come at this
[3:33:50] slightly differently in
[3:33:51] the math so that it might be a
[3:33:53] little clearer.
[3:33:54] So the first thing to
[3:33:55] understand is when we talk
[3:33:55] about distribution assets in
[3:33:58] the report, those include
[3:33:59] specifically the vast majority
[3:34:00] of the distribution sorry
[3:34:01] the transmission assets that we
[3:34:03] speak about are the substations
[3:34:04] and that's the point of step
[3:34:04] down.
[3:34:08] Those are often and you want
[3:34:08] those The reason they're
[3:34:09] included in the study is
[3:34:13] because you want them both for
[3:34:13] the ability to manage
[3:34:14] the system and then plan for
[3:34:18] future growth so that
[3:34:19] the oversimplified solute
[3:34:19] example I can give here is
[3:34:23] buying just the distribution
[3:34:23] system is like buying the pipes
[3:34:24] but not the pump station for
[3:34:27] water.
[3:34:28] So that's kind of the I just
[3:34:29] want to address kind of
[3:34:29] the there's a reason that we
[3:34:32] didn't do a distribution only
[3:34:33] kind of presentation in
[3:34:33] the report from the just
[3:34:37] compensation standpoint.
[3:34:37] Yes.
[3:34:38] So we know from the information
[3:34:46] that's in the report that about
[3:34:46] 10% give or take of
[3:34:50] the physical assets of any
[3:34:50] within the city of San Diego
[3:34:51] are fully depreciated.
[3:34:52] One of the reasons those cost
[3:34:55] boundary is are so large
[3:34:56] compared to phase one is
[3:34:59] because there's a significantly
[3:35:00] larger component of the assets
[3:35:01] that are old And a lot of that
[3:35:05] is because the vast majority of
[3:35:10] ratepayer funds in the last 5
[3:35:11] to 10 years of all of city
[3:35:14] genius territory have been
[3:35:15] toward wildfire mitigation
[3:35:19] that's been approved at the cpc
[3:35:19] .
[3:35:20] And to Councilmember Von
[3:35:20] Wilpert point, we have
[3:35:25] benefited from that as a city
[3:35:25] but we're also paying for it.
[3:35:26] >> We are ten and in every
[3:35:29] other municipalities paying for
[3:35:30] it.
[3:35:30] So ten years ago the city of
[3:35:35] San Diego ratepayers made up
[3:35:35] approximately 40% of city
[3:35:39] genies Total revenue Since
[3:35:40] we've now seen growth in houses
[3:35:40] and industry etc. In
[3:35:41] the greater San Diego region
[3:35:43] we're now down to about 35% of
[3:35:44] their revenue.
[3:35:48] So the issue of just
[3:35:49] compensation in a hypothetical
[3:35:54] simply says okay you are going
[3:35:58] to remove 35% of revenue,
[3:36:02] 660,000 customers from
[3:36:02] the overall territory.
[3:36:07] >> If you do that that means
[3:36:08] that and again we don't put
[3:36:11] this number in the feasibility
[3:36:12] study because you can kind of
[3:36:13] pick any number to put in that
[3:36:16] whatever investments sdg any
[3:36:17] continues to make from that
[3:36:21] division from the point of that
[3:36:22] division are only going to be
[3:36:27] applied to the rest of excuse
[3:36:27] me the rest of the system.
[3:36:28] So right now yes, depending on
[3:36:31] which year we're talking about
[3:36:31] City of San Diego ratepayers
[3:36:32] most of the urban ratepayers
[3:36:35] frankly not just within
[3:36:35] the city are subsidizing
[3:36:36] investment in the physical
[3:36:41] system outside the city If
[3:36:42] those physical investments
[3:36:46] continue to and are seen to be
[3:36:50] beneficial to the whole area
[3:36:51] including a new city I mean you
[3:36:52] then there is a just
[3:36:55] compensation problem that all
[3:36:56] of those costs should not be
[3:37:00] borne by the remaining sdg any
[3:37:01] ratepayers If there is still
[3:37:05] benefit out to the new city of
[3:37:06] San Diego ratepayers And that's
[3:37:06] the just compensation
[3:37:10] conversation one and part of
[3:37:11] the ongoing kind of proceeding
[3:37:15] with San Francisco and ppg and
[3:37:16] they have a very different
[3:37:17] calculation both because of
[3:37:19] Janie's lack of investment into
[3:37:20] wildfire and the size of San
[3:37:21] Francisco as it relates to
[3:37:24] the larger any system but
[3:37:25] the exit fee fees is kind of
[3:37:30] like the cia when the ccr was
[3:37:30] set up.
[3:37:31] There are contracts and fixed
[3:37:34] costs that Guinea pays or has
[3:37:38] historically paid that the city
[3:37:39] of San Diego ratepayers still
[3:37:39] need to cover.
[3:37:43] If you look back and say Well
[3:37:44] we've done a whole bunch
[3:37:44] outside the city you could
[3:37:47] argue just compensation one way
[3:37:48] If you say hey all this load
[3:37:49] growth means that we're going
[3:37:50] to have to do a whole bunch of
[3:37:53] investment outside the city
[3:37:53] boundaries but it benefits
[3:37:54] the city than just compensation
[3:37:58] is going to look another way
[3:37:58] what that range looks like and
[3:37:59] how the puc even determines
[3:38:03] the correct way to calculate
[3:38:03] that is a vastly open question.
[3:38:07] Okay, So let me just go back to
[3:38:08] one last material component of
[3:38:12] this problem.
[3:38:13] My understanding is if we did a
[3:38:17] distribution only model that
[3:38:17] would be the utility, the local
[3:38:21] public utility that we'd pay a
[3:38:22] portion of the bill too but we
[3:38:27] wouldn't stop paying as genie
[3:38:27] for the transmission component
[3:38:28] would we Correct.
[3:38:31] It would be like some type of
[3:38:32] you would still have to use
[3:38:33] the transmission system.
[3:38:33] Yeah, okay.
[3:38:34] We'd still have to use
[3:38:36] the transmission system so we'd
[3:38:37] still be bearing the cost of
[3:38:42] the entire air transmission
[3:38:42] system through that portion of
[3:38:45] a potential hypothetical bill.
[3:38:46] So why would there be an exit
[3:38:50] fee if we'd still be paying
[3:38:51] the transmission bill Because
[3:38:51] of the fixed cost for
[3:38:55] the entire distribution system
[3:38:56] which again doesn't it wasn't
[3:38:56] built city by city.
[3:39:01] So even as you disconnect it,
[3:39:02] our system is built as a
[3:39:05] unified territory wide south
[3:39:06] Orange County to the border and
[3:39:10] there are fixed costs that run
[3:39:10] through that that would still
[3:39:11] need to be that are still being
[3:39:15] paid by our customers.
[3:39:16] And so if the city was to walk
[3:39:17] away, those customers are still
[3:39:19] paying those fixed costs that
[3:39:20] have already been spent And so
[3:39:21] the city can't just walk away
[3:39:25] from those fixed costs across
[3:39:25] the system.
[3:39:26] They would still be
[3:39:26] responsible.
[3:39:29] That's what the case up in San
[3:39:30] Francisco said is you have to
[3:39:31] make the other customers whole
[3:39:31] And what do you think the fixed
[3:39:34] costs are We think it's in
[3:39:38] the billions surely two $7
[3:39:39] billion That's a huge range
[3:39:39] somewhere between 4 and $7
[3:39:40] billion for being very
[3:39:43] concerned As I say, surely as
[3:39:44] the investors in that
[3:39:44] infrastructure you wouldn't
[3:39:48] know the exact dollar amount
[3:39:48] that it would cost, right?
[3:39:49] Yeah.
[3:39:49] Okay.
[3:39:52] Can you not give me better than
[3:39:53] 427 six 6 to $8 billion?
[3:39:57] >> Okay But it's negotiable,
[3:39:57] right?
[3:39:58] >> We don't think so.
[3:40:02] And the cpc did say that it's
[3:40:03] absolutely part of the court
[3:40:06] case as Heather just explained
[3:40:07] ,the court will actually
[3:40:07] determine it.
[3:40:08] So you know, I don't know
[3:40:12] exactly what that's going to
[3:40:12] look like.
[3:40:13] Yes, it could be some type of
[3:40:16] settlement but ultimately
[3:40:17] the court determines what
[3:40:17] the just compensation would be
[3:40:21] to the remaining customers So
[3:40:22] they don't see a 20 to 30% rate
[3:40:22] increase.
[3:40:22] Okay.
[3:40:26] Really quickly, you mentioned
[3:40:26] that you didn't do an analysis
[3:40:27] of distribution only model.
[3:40:31] You said that right just a
[3:40:31] minute ago.
[3:40:32] This study doesn't provide its
[3:40:35] kind of recommendations and
[3:40:36] determination of feasibility
[3:40:37] looking at just distribution
[3:40:40] because it's not recommended
[3:40:41] for the actual long term health
[3:40:45] purpose and a capability of any
[3:40:45] municipal utility.
[3:40:46] But the other thing but there
[3:40:50] is that distinction that's got
[3:40:50] made of you're not talking high
[3:40:51] voltage crossing line
[3:40:51] transmissions.
[3:40:55] We have transmission line is
[3:40:55] just how big the line is.
[3:40:56] There's a break point of what's
[3:40:57] considered a distribution line
[3:41:00] versus a transmission line.
[3:41:00] We have transmission lines that
[3:41:01] run between substations, both
[3:41:03] of which are within the city.
[3:41:04] You effectively want to own all
[3:41:05] of the assets within the city
[3:41:09] boundary in order to run
[3:41:09] the system efficiently.
[3:41:10] Sometimes you got to move power
[3:41:14] really far and sometimes you
[3:41:15] you know you can just run it
[3:41:15] along the distribution lines.
[3:41:16] That's an excellent point.
[3:41:19] Power San Diego That's a
[3:41:20] component that wasn't brought
[3:41:20] up that I've heard before
[3:41:21] The fact that within the city
[3:41:24] you have the transmission lines
[3:41:25] and if you're looking at if
[3:41:26] you're suggesting just a
[3:41:29] distribution only utility, a
[3:41:30] public utility, how do you get
[3:41:30] around that internal
[3:41:34] transmission line?
[3:41:35] What do you get around that is
[3:41:35] those transmission and
[3:41:39] distribution substations become
[3:41:41] tollbooths.
[3:41:43] You monitor how much power is
[3:41:44] flowing off the transmission
[3:41:45] system You pay for that.
[3:41:48] We pay it through
[3:41:49] the transmission access charges
[3:41:50] and that is how the system
[3:41:53] works.
[3:41:54] Again, the first study that new
[3:41:55] Gen did with distribution only
[3:42:00] and so it's a choice.
[3:42:03] Okay, understood.
[3:42:13] Thank you, MR. CHAIRMAN, Quick
[3:42:14] question for you.
[3:42:17] I noticed you mentioned
[3:42:18] leverage your workers would
[3:42:19] have in negotiating a deal if a
[3:42:22] significant proportion were
[3:42:23] segregated off from the broader
[3:42:27] body that you represent.
[3:42:28] How would it materially change
[3:42:32] the day to day work to have
[3:42:33] Genie essentially handling
[3:42:36] certain components that run
[3:42:37] into the city of San Diego
[3:42:41] versus a public utility
[3:42:41] controlling inside the city?
[3:42:42] I would say it's going to be a
[3:42:46] substantial impact especially
[3:42:47] when you start talking about
[3:42:47] breaking out the transmission
[3:42:51] and distribution infrastructure
[3:42:51] .
[3:42:52] As a lineman who worked on
[3:42:53] these power lines in the city
[3:42:53] of San Diego for ten years
[3:42:56] before taking this job, a lot
[3:42:56] of our transmission
[3:42:57] infrastructure has distribution
[3:43:00] under build so it's the same
[3:43:01] exact pole, right?
[3:43:06] So if a transmission pole has
[3:43:07] 16 kbps on top 12 gave you
[3:43:09] under build and then 120 to 40
[3:43:09] on the bottom and a drunk
[3:43:10] driver runs into that pole and
[3:43:13] everything's on the ground.
[3:43:14] We struggle today having to put
[3:43:14] up telecommunications lines,
[3:43:18] having to rely on spectrum
[3:43:19] at&t, Cox Communications to
[3:43:23] come out and then we are
[3:43:23] putting stuff up here Now
[3:43:24] you're just adding another
[3:43:25] layer of bureaucracy on who's
[3:43:27] going to take the transmission.
[3:43:28] We're going to do
[3:43:29] the transmission, you're going
[3:43:31] to do the distribution And then
[3:43:32] three different telecom
[3:43:32] telecommunications companies
[3:43:33] are going to do these other
[3:43:36] wires As a lineman I'm just
[3:43:37] trying to get everything off
[3:43:37] the ground and up safe and
[3:43:38] power restored.
[3:43:41] So you're going to add to
[3:43:42] competing power companies
[3:43:43] trying to restore service in an
[3:43:43] emergency?
[3:43:46] I think it would make it very
[3:43:47] complicated.
[3:43:47] Okay.
[3:43:48] Appreciate that.
[3:43:50] I'll wrap up my comments.
[3:43:51] Council PRESIDENT I thank
[3:43:52] the members of the public for
[3:43:55] getting into the deep details
[3:43:56] of just why this is so
[3:43:57] complicated and being able to
[3:44:00] stand side by side at
[3:44:01] the microphone to answer
[3:44:01] the questions very directly as
[3:44:05] kind of transparent in fact
[3:44:06] driven comparison I think
[3:44:06] the public expects when we're
[3:44:09] dealing with multibillion
[3:44:10] dollar decisions and being able
[3:44:15] to hear immediately what one
[3:44:15] organization says and being
[3:44:19] able to rebut it or supplement
[3:44:20] it and ultimately hearing from
[3:44:20] the workers about how that
[3:44:21] impacts their lives.
[3:44:25] I know we have another item
[3:44:25] into a one where I'll have some
[3:44:29] further comments but at the end
[3:44:30] of the day I think that
[3:44:30] the well I'll say my comments
[3:44:34] about the 8% profit coming up
[3:44:35] in a second.
[3:44:36] Thank you Council PRESIDENT And
[3:44:39] thank you to members of
[3:44:40] the public for caring so much
[3:44:41] about driving rates down for
[3:44:41] electricity in San Diego.
[3:44:42] All right.
[3:44:44] Thank you.
[3:44:45] And to member Campo, this is an
[3:44:46] information item.
[3:44:47] We have a lot more work to do
[3:44:51] today but nevertheless
[3:44:52] Councilmember Bond, welcome
[3:44:52] one.
[3:44:52] One more point.
[3:44:53] First of all, the way that we
[3:44:54] can lower bills today is by
[3:44:56] making less profit for
[3:44:57] shareholders.
[3:45:02] Today any argument that we need
[3:45:02] to get rid of the public
[3:45:03] purpose programs in the state
[3:45:06] but the mandates in our bills
[3:45:07] is ridiculous.
[3:45:07] You want us to take away
[3:45:08] the low income assistance
[3:45:11] program and state bills.
[3:45:12] You want to take away
[3:45:13] the wildfire safety mandates?
[3:45:13] These are the state
[3:45:16] requirements in the bills that
[3:45:16] we pay.
[3:45:17] That is ridiculous.
[3:45:18] It should be said you need
[3:45:21] shareholder profits that are
[3:45:22] lower today to lower our bills,
[3:45:22] not lowering help for low
[3:45:23] income people And it shouldn't
[3:45:25] be on the backs of cities to do
[3:45:26] that.
[3:45:26] Second, we already pay We
[3:45:30] the city of San Diego already
[3:45:31] pay for infrastructure we don't
[3:45:32] use for city And I'm now
[3:45:32] reading about the Golden
[3:45:36] Pacific Power Line project that
[3:45:36] could go entirely around
[3:45:37] the city of San Diego.
[3:45:39] Yet our ratepayers might have
[3:45:40] to pay for it.
[3:45:41] So I'm glad you're having a lot
[3:45:45] of stakeholder engagement but
[3:45:46] you need to engage the citizens
[3:45:46] of City of San Diego who could
[3:45:47] be paying for this.
[3:45:49] And second of all you should be
[3:45:50] doing more than just virtual
[3:45:51] open houses.
[3:45:51] If you're going to run this
[3:45:54] through an unnatural state park
[3:45:55] like Rego Springs, go to
[3:45:55] Brigham Springs, talk to
[3:45:59] the people in the communities
[3:45:59] in in person about this before
[3:46:00] you go to a natural preserve.
[3:46:00] Thank you.
[3:46:03] Council PRESIDENT.
[3:46:04] All right.
[3:46:04] Thank you.
[3:46:05] So not seeing anybody else on
[3:46:09] the lights.
[3:46:09] This is an information item.
[3:46:10] No motions required.
[3:46:13] Thank you to Brittany, Nate
[3:46:14] Bell and whoever else got in
[3:46:18] the hot seat And we're willing
[3:46:19] to take the questions from
[3:46:20] the council members going
[3:46:20] forward.
[3:46:21] There was a lot of ground
[3:46:21] covered.
[3:46:23] There was a lot of ground not
[3:46:24] covered for this discussion
[3:46:25] because we weren't setting this
[3:46:28] up for an action today because
[3:46:29] there are still so many things.
[3:46:32] But I'll reiterate what
[3:46:33] the report said that it is
[3:46:37] feasibly feasible from an
[3:46:38] economic point of view and it's
[3:46:39] feasible from a technical point
[3:46:39] of view.
[3:46:40] A lot more work would have to
[3:46:42] be done And so you kind of
[3:46:43] tried to summarize Heather and
[3:46:43] I appreciate that.
[3:46:46] So with that we will close item
[3:46:47] 200.
[3:46:47] Again, thank you to everyone
[3:46:51] and Deputy Clerk please
[3:46:55] introduce item 201 Thank you
[3:46:56] Council PRESIDENT Item 2a1 sdg
[3:46:59] any franchise independent audit
[3:47:00] report and Franchise Compliance
[3:47:04] Review Committee report 2023
[3:47:32] through 2025 Thank you for All
[3:47:33] right As you start to settle in
[3:47:34] introduce yourselves for
[3:47:38] the record and let us know how
[3:47:38] much time we need.
[3:47:39] >> Hello.
[3:47:39] Thank you.
[3:47:40] Council PRESIDENT My name is
[3:47:40] Matt.
[3:47:43] We are We'll try to keep under
[3:47:43] 20 minutes for That's for both
[3:47:44] for the entire reading.
[3:47:44] Okay.
[3:47:46] Thank you.
[3:47:46] >> Thank you.
[3:47:47] My name is Megan Long, program
[3:47:51] manager and department of
[3:47:51] General Services.
[3:47:52] I'm joined today by Eric Cohen,
[3:47:56] Aaron Cohen and Eric Niland
[3:47:57] from Crow Cody Human And to
[3:47:58] tell me about Marshall Zeigler
[3:47:59] from our franchise Compliance
[3:48:00] Review committee today we'll be
[3:48:01] presenting to you the results
[3:48:02] of our second two year
[3:48:05] compliance period of the Genie
[3:48:06] franchise which will include a
[3:48:06] presentation from our
[3:48:07] independent auditor as well as
[3:48:10] our presentation from
[3:48:10] the Franchise Compliance Review
[3:48:11] Committee.
[3:48:15] By way of background in JULY of
[3:48:15] 2021 the Council passed two
[3:48:16] ordinances that awarded the gas
[3:48:20] and electric franchises to San
[3:48:21] Diego Gas and Electric
[3:48:21] the franchise with a ten year
[3:48:24] term with an automatic renewal
[3:48:24] for a second ten years unless
[3:48:25] there's action taken by council
[3:48:26] as additional level of
[3:48:29] oversight.
[3:48:30] The franchise required two
[3:48:30] things First, the city is
[3:48:31] required to retain a third
[3:48:34] party independent auditor every
[3:48:35] two years to perform an audit
[3:48:36] of each unit compliance with
[3:48:37] the franchise.
[3:48:38] And second, the franchise
[3:48:38] requires the city to establish
[3:48:39] the Franchise Compliance Review
[3:48:42] Committee also known as the f
[3:48:42] crc, a citizens committee
[3:48:43] comprised of two mayoral
[3:48:46] appointments and three council
[3:48:46] appointments.
[3:48:47] The icrc is charged with
[3:48:48] receiving the independent
[3:48:50] Auditors report and providing
[3:48:51] its own report to Council with
[3:48:52] a recommendation on
[3:48:54] the automatic renewal on
[3:48:55] the second ten year term.
[3:48:55] Both of those reports will be
[3:48:59] presented today in JULY of 2024
[3:48:59] we presented a similar item for
[3:49:00] the first two year review
[3:49:04] period and at the same meeting
[3:49:04] council passed a resolution to
[3:49:07] establish the second frc to
[3:49:08] review the second compliance
[3:49:09] period which covers JULY 8th
[3:49:11] 2023 to JULY 7th of 2025.
[3:49:12] I would like to take a moment
[3:49:13] to thank the volunteer
[3:49:18] committee members Matt Brennan,
[3:49:18] Lydia Latimore, Cody Human So
[3:49:21] tell me about Flagler and Corey
[3:49:22] All right.
[3:49:22] For their time and dedication
[3:49:26] to this committee in regards to
[3:49:27] the independent auditor in
[3:49:27] OCTOBER of 2022 city staff
[3:49:31] released an rfp for
[3:49:31] the independent auditor and
[3:49:32] after a competitive process
[3:49:33] Crowell lp was elected as
[3:49:36] the vendor cro will present
[3:49:37] their audit findings for
[3:49:38] the first two three for
[3:49:39] the second two year Crowe
[3:49:40] presented their audit findings
[3:49:43] for the first two year
[3:49:43] franchise period as part of
[3:49:44] the hearing in JULY of 2024 and
[3:49:48] the city chose to exercise its
[3:49:48] option to extend Crowe's
[3:49:49] contract for the second two
[3:49:53] year compliance period.
[3:49:53] I have with me today
[3:49:54] representatives from the Crowe
[3:49:55] team who will go into more
[3:49:55] detail about their audit
[3:49:58] procedures and findings in a
[3:49:58] few minutes.
[3:49:59] But at a high level the audit
[3:50:02] covers the second two year of
[3:50:02] the franchise scuse me
[3:50:03] the second two years of
[3:50:05] the franchise and includes
[3:50:06] the financial, operational and
[3:50:07] cooperative requirements under
[3:50:07] the franchise ordinances and
[3:50:10] their supporting documents
[3:50:11] which include
[3:50:11] the administrative mou,
[3:50:12] the undergrounding mou and
[3:50:12] the Energy Cooperation
[3:50:15] Agreement.
[3:50:16] At this point I will pass it
[3:50:17] over to our independent under
[3:50:18] Crowe who will provide an
[3:50:18] overview of the audit findings
[3:50:23] and recommendations.
[3:50:23] Thank you Megan.
[3:50:24] Next slide we'll go through
[3:50:28] some brief introductions.
[3:50:28] We'll talk about audit scope
[3:50:29] and procedure and then our
[3:50:33] findings and recommendations.
[3:50:33] So next slide My name is Eric
[3:50:34] Niland.
[3:50:35] I'm a director with Crowe and
[3:50:38] with me I have Erin Cohen who's
[3:50:39] a senior manager with Crowe.
[3:50:40] We don't have Burt with us but
[3:50:42] he was the engagement partner
[3:50:47] on this project.
[3:50:47] >> I'll turn to Aaron to talk
[3:50:48] about the scope here.
[3:50:52] Thank you Eric So scope of
[3:50:52] the audit was an independent
[3:50:53] audit of Genie's gas and
[3:50:56] electric franchise agreements
[3:50:57] And as Megan mentioned the two
[3:51:00] year period was JULY 8th, 2023
[3:51:01] through JULY 7th, 2025.
[3:51:05] The audit covered Genie's
[3:51:06] performance and complying with
[3:51:07] the franchise agreements
[3:51:10] Administrative mou, the utility
[3:51:10] underwriting mou and the Energy
[3:51:11] Cooperation agreement
[3:51:15] associated with the franchises
[3:51:15] .
[3:51:15] Now our audit procedures
[3:51:16] included conducting interviews
[3:51:20] with Jenny and city staff.
[3:51:20] We spoke with city staff
[3:51:21] including finance, operational
[3:51:25] and oversight personnel and
[3:51:25] spoke with many city
[3:51:26] departments the Development
[3:51:29] Services Department and an
[3:51:30] engineering and capital
[3:51:30] projects utilities
[3:51:31] undergrounding program and city
[3:51:31] management.
[3:51:34] We reviewed and documented
[3:51:35] requirements of each agreement.
[3:51:39] We submitted multiple data
[3:51:40] requests to City Jenny and
[3:51:40] the city.
[3:51:41] These data requests were
[3:51:41] requested for relevant
[3:51:44] requirements for each of
[3:51:45] the agreements for franchise
[3:51:45] fees We obtained and reviewed
[3:51:49] Genie Annual franchise fee
[3:51:49] calculation documents,
[3:51:50] quarterly franchise fee
[3:51:53] statements, processed
[3:51:54] documentation controls
[3:51:55] information They are aging
[3:51:58] reports, bad debt expense
[3:51:59] support and collection
[3:52:00] procedures and documentation of
[3:52:07] payment to the city Exide For
[3:52:07] the administrative mou we
[3:52:10] selected a sample of 13
[3:52:11] projects to audit project
[3:52:12] specific requirements things
[3:52:16] like permitting inspections or
[3:52:16] collaboration.
[3:52:17] We also reviewed supporting
[3:52:20] documentation for what we're
[3:52:21] calling non project specific
[3:52:21] requirements.
[3:52:22] This is information sharing
[3:52:25] protocols or communication
[3:52:26] between Genie and the city.
[3:52:26] Similarly for the utility
[3:52:30] undergrounding mou we selected
[3:52:31] eight in-process projects to
[3:52:32] audit requirements that were
[3:52:35] project specific and then
[3:52:36] review review supporting
[3:52:37] documentation for non project
[3:52:40] specific requirements for
[3:52:40] the Energy Cooperation
[3:52:41] Agreement We reviewed
[3:52:42] supporting documentation for
[3:52:48] each requirement.
[3:52:49] >> Now the results of these
[3:52:49] tests indicated that we met
[3:52:50] the four audit objectives in
[3:52:53] all significant respects for
[3:52:53] the audit period.
[3:52:54] However we did include two
[3:52:54] audit findings that were deemed
[3:52:58] not to be significant
[3:52:58] significant to the objectives
[3:52:59] but warranted inclusion in
[3:53:03] the report.
[3:53:04] >> And now I'm going to turn it
[3:53:04] to Eric to walk through
[3:53:05] the findings.
[3:53:08] You know, so the first of these
[3:53:08] findings has to do with
[3:53:09] compliance with
[3:53:11] the undergrounding mou And
[3:53:12] there were several sections of
[3:53:13] the mou that we found
[3:53:17] noncompliance and and they're
[3:53:18] listed here on this slide and
[3:53:21] I'll review those with you for
[3:53:22] the first of those are six 11.2
[3:53:27] for a project titled block b r
[3:53:30] a r c g You do not complete
[3:53:31] internal processes on time
[3:53:32] which caused a delay in
[3:53:35] assigning and inspector to
[3:53:36] the project and that's Palm
[3:53:36] City.
[3:53:40] Edgar Highlands project.
[3:53:41] Secondly, sd g did not provide
[3:53:45] a written schedule of days and
[3:53:46] hours in which the c an
[3:53:49] inspector would be available to
[3:53:50] a project titled Blockade r sd
[3:53:54] g ultimately was not able to
[3:53:55] provide an inspector at
[3:53:56] the time of that construction
[3:53:56] as a consequence.
[3:54:00] So in section 743g did not
[3:54:04] comply by providing a
[3:54:04] construction baseline which
[3:54:09] includes both an estimate of
[3:54:09] cost and a schedule for
[3:54:10] trenching conduit work for
[3:54:14] the project titled 2bb job two
[3:54:14] That's a crown point one.
[3:54:17] And finally in section 834cg
[3:54:22] has not submitted detailed 90%
[3:54:22] design estimates in
[3:54:23] the supporting documentation
[3:54:27] for invoices Did not clearly
[3:54:28] differentiate projects that
[3:54:28] have reached the 90% completion
[3:54:32] threshold as required by
[3:54:32] the franchise.
[3:54:33] So we have a number of
[3:54:33] recommendations to address
[3:54:36] these these misses so to speak.
[3:54:37] The first is to establish
[3:54:41] stronger project management
[3:54:41] controls by developing
[3:54:42] standardized timelines and
[3:54:46] checklists.
[3:54:46] Secondly, to assign a dedicated
[3:54:47] compliance liaison or project
[3:54:51] coordinator within cdg and to
[3:54:51] limit these misses.
[3:54:55] Third, to revise invoicing
[3:54:55] backup materials to more
[3:54:59] clearly distinguish that 90%
[3:54:59] design estimate.
[3:55:00] Fourth to establish regular
[3:55:04] joint review meetings with city
[3:55:04] staff They've started doing
[3:55:05] those and are doing more of
[3:55:09] them As a consequence of this
[3:55:10] trained personnel and mou
[3:55:14] requirements by reinforcing
[3:55:14] compliance standards And
[3:55:15] finally link compliance to
[3:55:19] performance metrics or
[3:55:19] oversight reviews.
[3:55:20] So those are recommendations
[3:55:21] that are addressed first.
[3:55:23] The first findings second
[3:55:24] finding on the next slide has
[3:55:28] to do with the admin mou
[3:55:34] section ten point b of that mou
[3:55:35] as you need to not schedule
[3:55:36] pre-construction meeting with
[3:55:39] the city as required as
[3:55:40] Eugenie's Field crews
[3:55:41] incorrectly assumed that was a
[3:55:43] classic Category one project
[3:55:43] winner which would not have
[3:55:44] required this pre-construction
[3:55:47] meeting and the project was
[3:55:48] actually a Category two
[3:55:48] project.
[3:55:49] So there's a couple of things
[3:55:52] that I can do to strengthen and
[3:55:53] you know, respond accordingly.
[3:55:56] First by just project project
[3:56:01] classification work and review
[3:56:02] processes so that this doesn't
[3:56:02] happen again.
[3:56:03] Developing a project checklist
[3:56:03] to be reviewed by
[3:56:06] the supervisor before
[3:56:07] construction begins.
[3:56:08] And perhaps most important to
[3:56:08] train field crews and project
[3:56:12] managers to clearly
[3:56:13] differentiate between these two
[3:56:13] category types.
[3:56:16] So those are the two findings
[3:56:20] the status of findings from
[3:56:20] the first phase of the audit
[3:56:21] and I'll go through those
[3:56:21] briefly here.
[3:56:25] There were four findings last
[3:56:26] Two of these have been
[3:56:26] remediating remediated.
[3:56:29] Those are three and four.
[3:56:29] Number three was remediated
[3:56:30] because it's no longer a
[3:56:34] compliance requirement And
[3:56:35] the new admin mou number four
[3:56:35] was remediated because
[3:56:39] the finding related to a paint
[3:56:40] plant completion timing which
[3:56:41] they met although they delayed
[3:56:45] in meeting and getting that
[3:56:45] done both the city and in
[3:56:46] the study ultimately got
[3:56:49] the plan completed So it wasn't
[3:56:50] a compliance matter in this
[3:56:50] phase.
[3:56:55] The other two relate to number
[3:56:56] one they're inconsistent
[3:56:56] undergrounding project cost
[3:56:57] estimates.
[3:57:00] And so this is sort of a to be
[3:57:01] determined going forward.
[3:57:05] In the past there were some
[3:57:06] inconsistencies in the overhead
[3:57:06] allocations to the cost
[3:57:07] estimates and they've cleaned
[3:57:11] those up to some degree.
[3:57:12] But going forward I think
[3:57:12] there's still as they get into
[3:57:16] more construction projects
[3:57:16] there's still a need to
[3:57:17] reinforce consistent project
[3:57:21] cost estimates There.
[3:57:22] The second one is just in terms
[3:57:23] of collaborating between
[3:57:27] the city and sd Junior on
[3:57:27] the mou for certain contracted
[3:57:32] services, the Mhsaa hasn't been
[3:57:32] solicited again So to
[3:57:33] the degree that when that
[3:57:38] happens there more coordination
[3:57:39] between the city and sga and on
[3:57:40] that is merited So we didn't
[3:57:42] say that's remediated but it's
[3:57:43] pending the next cycle of
[3:57:43] the mhsaa.
[3:57:44] So with that I will turn it
[3:57:50] back to the Council for
[3:57:50] questions.
[3:57:51] At this time I would have to
[3:57:51] revert to our franchise
[3:57:57] compliance review committee.
[3:57:57] Hi everybody.
[3:57:58] Thank you.
[3:57:58] My name is Cody Hoven.
[3:57:59] I'm the chair of your franchise
[3:58:02] Compliance Review committee.
[3:58:03] Nice to be back in the seat I
[3:58:03] think.
[3:58:04] And here with the Tell me about
[3:58:07] Siegler the vice chair of
[3:58:08] the committee.
[3:58:08] We're going to split up this
[3:58:09] portion of the presentation.
[3:58:12] Thanks.
[3:58:13] So just to remind you
[3:58:14] the purpose of Franchise
[3:58:18] Compliance Review Committee was
[3:58:19] it was assigned a very narrow
[3:58:20] scope per the franchise
[3:58:24] agreement and it's formed as
[3:58:25] you see here every two years to
[3:58:26] review franchise compliance and
[3:58:30] recommend to the city council
[3:58:31] whether the franchise should be
[3:58:31] renewed for a secondary term.
[3:58:32] So we're a function of
[3:58:36] the Brown Act compliant
[3:58:36] Committee and comply with all
[3:58:37] of the rules of the Brown Act
[3:58:41] in our meetings.
[3:58:42] Additionally, our
[3:58:42] responsibilities include
[3:58:43] reviewing and discuss
[3:58:47] discussing the franchise audit
[3:58:47] what you just heard in
[3:58:52] collaboration with the auditor
[3:58:53] and preparing a comprehensive
[3:58:53] written report for you all
[3:58:59] which we provided And I quickly
[3:59:00] went quickly through these and
[3:59:01] then making a formal
[3:59:04] recommendation to City Council
[3:59:05] regarding whether to approve
[3:59:05] automatic renewal of
[3:59:08] the franchise for a secondary
[3:59:14] ten year term.
[3:59:20] Next on the committee found
[3:59:21] that Junior demonstrated
[3:59:22] overall compliance with all
[3:59:26] four agreements The electric
[3:59:27] and gas franchise agreements,
[3:59:27] the administrative mou or
[3:59:28] the utility utility
[3:59:28] undergrounding mou and
[3:59:32] the energy Cooperation
[3:59:32] Agreement.
[3:59:33] The audit identified only a few
[3:59:34] minor issues mostly related to
[3:59:38] documentation scheduling or
[3:59:39] classification.
[3:59:39] These were isolated and
[3:59:40] technically and with no
[3:59:44] evidence of systemic problems
[3:59:45] financial harm or governance
[3:59:45] breakdowns.
[3:59:46] The committee recommends that
[3:59:50] routine monitoring or franchise
[3:59:51] compliance continue with a
[3:59:52] focus on clarifying
[3:59:52] expectations, standardizing
[3:59:56] documentation and reinforcing
[3:59:57] early coordination between
[3:59:58] F.D.A. And city departments for
[4:00:01] the administrative mou This
[4:00:02] means strengthening internal
[4:00:03] controls and aligning
[4:00:03] renegotiate renegotiation
[4:00:07] timelines with the committees
[4:00:08] review cycle.
[4:00:08] Right now there's a timing
[4:00:09] mismatch mismatch between when
[4:00:14] the agreements can be
[4:00:14] renegotiated and when
[4:00:15] the committee is actually doing
[4:00:15] its review.
[4:00:16] That means the committee's
[4:00:20] input MAY come too late to
[4:00:21] meaningful meaningfully
[4:00:21] influence the process.
[4:00:22] What we're proposing is to
[4:00:26] better align those timelines so
[4:00:27] when the renegotiation
[4:00:27] opportunities arise they
[4:00:28] coincide with the committee's
[4:00:33] review cycle allowing their
[4:00:33] work to directly inform city
[4:00:34] decisions for
[4:00:34] the undergrounding mou.
[4:00:35] The committee recommends
[4:00:39] providing detailed cost
[4:00:39] breakdowns and establishing a
[4:00:40] regular review mechanism.
[4:00:41] Those costs are often shown as
[4:00:46] big lump sums and not broken
[4:00:46] into enough detail.
[4:00:47] So you know x is for labor wise
[4:00:51] for overhead, for construction.
[4:00:51] Right now it's like getting a
[4:00:52] restaurant bill that just says
[4:00:53] a total of $200 with no
[4:00:57] itemized itemization.
[4:00:57] The committee is recommending
[4:00:58] an itemized receipt and regular
[4:00:59] check ins to make sure
[4:01:02] everything looks reasonable for
[4:01:03] the Energy Cooperation
[4:01:03] Agreement.
[4:01:04] The committee suggests setting
[4:01:05] realistic timelines,
[4:01:08] maintaining energy efficient
[4:01:09] program commitments, improving
[4:01:09] reporting and expanding public
[4:01:10] engagement opportunities.
[4:01:14] Next slide please.
[4:01:15] While complaints are strong,
[4:01:16] the committee noted several
[4:01:16] areas where the processes could
[4:01:17] be improved.
[4:01:20] These include ensuring
[4:01:21] pre-construction meetings are
[4:01:22] consistently held clarifying
[4:01:22] documentation practices,
[4:01:27] increasing transparency and
[4:01:27] project cost enhancing tracking
[4:01:28] and reporting under the Energy
[4:01:29] Cooperation Agreement and
[4:01:32] creating additional
[4:01:33] opportunities for public
[4:01:34] engagement before agreements or
[4:01:34] modifications are executed.
[4:01:39] Next slide please.
[4:01:39] The committee recommends
[4:01:40] continuing to monitor prior
[4:01:41] audit needs to ensure progress
[4:01:44] is sustained.
[4:01:45] Recognizing that some issues
[4:01:46] require ongoing management
[4:01:46] rather than one time fixes, it
[4:01:51] also suggest creating plain
[4:01:52] language summaries of all
[4:01:52] agreements to help both
[4:01:53] the committee and the public
[4:01:58] understand the purpose process
[4:01:58] and the timelines.
[4:01:59] Renegotiation timelines once
[4:02:04] again should be aligned should
[4:02:04] align with biennial review
[4:02:05] cycle to improve public
[4:02:06] engagement and the Committee
[4:02:10] should have access to draft
[4:02:10] audit findings for early
[4:02:11] review.
[4:02:11] Oversight shouldn't just focus
[4:02:12] on compliance though We also
[4:02:15] need to look at financial
[4:02:16] impacts and how these
[4:02:17] agreements affect the community
[4:02:17] creating structured
[4:02:18] opportunities for Republican
[4:02:22] input along with more
[4:02:23] standardized reporting across
[4:02:23] all franchise agreements would
[4:02:24] improve transparency and make
[4:02:28] it easier for the council and
[4:02:28] the public to review and
[4:02:29] understand what's happening
[4:02:33] next Like this.
[4:02:34] The committee observed that not
[4:02:34] all franchise activities carry
[4:02:35] the same level of risk or
[4:02:39] public concern.
[4:02:40] So oversight should focus on
[4:02:40] areas of greatest impact For
[4:02:44] example routine administrative
[4:02:45] updates like minor contract
[4:02:46] amendments or reporting changes
[4:02:46] don't typically have major
[4:02:51] community impacts and can be
[4:02:51] reviewed more quickly.
[4:02:52] But decisions involving
[4:02:53] undergrounding projects rate
[4:02:57] impacts or long term renewal
[4:02:58] terms have significant
[4:02:59] financial and public
[4:03:03] implications So those should be
[4:03:03] should receive deeper scrutiny
[4:03:04] and more detailed oversight.
[4:03:05] Some prior audit findings like
[4:03:09] undergrounding cost variability
[4:03:10] have improved while others
[4:03:11] require ongoing management.
[4:03:15] In this case continuous
[4:03:16] improvement rather than
[4:03:16] the complete absence of issues
[4:03:17] is is a reasonable but
[4:03:21] reasonable benchmark.
[4:03:22] To strengthen oversight,
[4:03:23] the committee recommends
[4:03:23] establishing successful
[4:03:27] criteria beyond compliance for
[4:03:28] example instead of only
[4:03:28] confirming compliance.
[4:03:33] We would also look at look at
[4:03:33] outcomes like whether
[4:03:34] the project stayed on budget or
[4:03:34] were delivered on schedule.
[4:03:39] Sharing all public comments So
[4:03:40] feedback from residents is
[4:03:40] fully visible throughout
[4:03:44] the process not just summarized
[4:03:44] .
[4:03:45] Expanding structured public
[4:03:45] input early in the agreement
[4:03:50] process for instance holding
[4:03:51] engagement sessions before key
[4:03:51] terms are finalized not after
[4:03:52] decision decisions are largely
[4:03:56] set.
[4:03:57] Enhancing audit scope for cost
[4:03:57] drivers.
[4:03:58] So instead of just seeing total
[4:04:03] project costs we can clearly
[4:04:04] see the breakdowns you know
[4:04:04] like earlier and itemized
[4:04:08] receipt and standardizing
[4:04:08] reporting across all franchise
[4:04:09] agreements to improve
[4:04:10] transparency, consistency and
[4:04:12] accessibility for the committee
[4:04:13] ,city council and the public
[4:04:19] in general.
[4:04:20] And so consider our
[4:04:20] recommendations a bigger
[4:04:21] picture.
[4:04:25] We based on the information we
[4:04:26] had in front of us and barring
[4:04:27] any other decisions you all
[4:04:27] might make.
[4:04:29] The committee recommended
[4:04:30] allowing the franchise to renew
[4:04:36] with conditions.
[4:04:37] So this Conditional Renewal
[4:04:37] Council decision per our
[4:04:41] recommendation should consider
[4:04:42] both individual agreements and
[4:04:42] among others as well as
[4:04:43] the overall structure and long
[4:04:44] term impact of the franchise.
[4:04:49] So our recommendation for
[4:04:49] renewals conditioned on
[4:04:50] aligning renegotiation
[4:04:51] timelines to ensure meaningful
[4:04:54] public and council input before
[4:04:55] agreements are finalized.
[4:04:55] So we talked about some of our
[4:05:00] key compliance.
[4:05:00] i think the key findings as a
[4:05:01] student is generally compliant
[4:05:02] based on the scope of the audit
[4:05:06] question posed with only minor
[4:05:06] issues noted in the audit.
[4:05:07] Underground costs are high and
[4:05:08] overhead transparency could
[4:05:08] improve.
[4:05:12] And previous concerns have been
[4:05:12] mostly addressed But climate
[4:05:13] action progress has been
[4:05:19] limited and public input was
[4:05:19] considered in our meetings as
[4:05:20] well.
[4:05:20] And the three new one would
[4:05:22] preserve flexibility for future
[4:05:29] options like mineralization.
[4:05:29] This conditional renewal is
[4:05:30] the approach our committee
[4:05:35] recommended because it supports
[4:05:36] both San Diego ratepayers and
[4:05:37] the city's broader policy
[4:05:37] objectives.
[4:05:41] But I would like to underscore
[4:05:42] that it is important to
[4:05:43] recognize that simply meeting
[4:05:44] the terms of these agreements
[4:05:48] the compliance alone doesn't
[4:05:48] fully address the bigger
[4:05:49] concerns of how you define
[4:05:50] success As a lot of discussion
[4:05:53] you've heard today.
[4:05:54] Things like affordability,
[4:05:55] potential rate impacts or how
[4:05:55] these agreements align with
[4:05:56] the city's long term energy and
[4:06:00] climate goals.
[4:06:00] This is why renewal is
[4:06:01] ultimately a policy decision to
[4:06:02] city council balancing
[4:06:03] compliance with public value
[4:06:09] and long term priorities.
[4:06:09] >> Thank you.
[4:06:10] We're happy to take any
[4:06:11] questions I think.
[4:06:11] All right.
[4:06:11] Thank you for
[4:06:12] the presentations.
[4:06:15] Special shout out to Cody Soto
[4:06:16] me and everybody on
[4:06:17] the franchise compliance
[4:06:21] agreement the volunteers.
[4:06:22] You've got some fans out there
[4:06:22] and all the work to do that.
[4:06:27] So with that please proceed
[4:06:27] with public comment.
[4:06:28] Thank you.
[4:06:33] Council PRESIDENT.
[4:06:33] This item received one comment
[4:06:34] in favor and one comment in
[4:06:35] opposition via our e comment
[4:06:38] form which had been distributed
[4:06:39] to the Council.
[4:06:39] We will begin with in-person
[4:06:40] comment allegedly Audra please
[4:06:41] come forward You'll have one
[4:06:47] minute to speak or serve.
[4:06:54] Feels like we're as de genies
[4:06:55] really And it's just
[4:07:00] interesting to have them here
[4:07:01] and talking about like how much
[4:07:05] is it really going to cost and
[4:07:06] it's like 4 to 7 billion and
[4:07:07] then it's like be honest and
[4:07:10] it's like okay, 6 to 8.
[4:07:10] So interesting how we just let
[4:07:11] this go on and as long as we
[4:07:15] make sure they're compliant
[4:07:16] with these agreements But no
[4:07:20] wonder why the cost is high for
[4:07:21] undergrounding because they
[4:07:22] make profit off of this
[4:07:22] infrastructure.
[4:07:23] And so I'm wondering if you're
[4:07:27] conditional renewal can be like
[4:07:28] any kind of profit you make you
[4:07:33] give it to us or half of it so
[4:07:33] that the people can start
[4:07:34] getting their money back.
[4:07:35] It's like I don't understand
[4:07:38] why we just kind of bend over
[4:07:39] and allow them to do these
[4:07:39] things.
[4:07:40] It's like you know it's
[4:07:40] happening.
[4:07:41] You know why their cost is high
[4:07:45] and why they're profiting.
[4:07:46] But yeah, we just continue to
[4:07:46] let it happen.
[4:07:47] How about you guys take some of
[4:07:47] that back?
[4:07:51] I mean you're the ones with
[4:07:52] the agreements that should get
[4:07:52] off the top.
[4:07:57] >> Thank you, Blair Beckman And
[4:07:58] while Blair comes to
[4:07:59] the microphone, could we have
[4:08:04] Anthony Ralphs or Seldon?
[4:08:05] Yeah and Bob because these Can
[4:08:06] you please come to the front
[4:08:09] row?
[4:08:10] Hi, we're Beekman.
[4:08:10] Thanks for the report.
[4:08:15] Thanks for the words on working
[4:08:15] on undergrounding issues that
[4:08:20] needs to be better specified.
[4:08:21] I was trying to specify
[4:08:22] previously that if we're going
[4:08:22] to do undergrounding things
[4:08:26] there is little neighborhoods
[4:08:27] that have undergrounding you
[4:08:27] know, funding sources and we
[4:08:32] can consider that as a
[4:08:33] municipality process.
[4:08:34] I want to make that more clear.
[4:08:38] Thank you for the ideas of
[4:08:38] oversight.
[4:08:39] Um yeah.
[4:08:39] Basically what I was saying was
[4:08:44] that we don't have to fully
[4:08:44] rely on municipality.
[4:08:45] We can rely on San Diego
[4:08:46] community energy itself and
[4:08:50] nothing in this capacity Those
[4:08:50] are options.
[4:08:51] Thank you for the oversight
[4:08:56] process that you've offered
[4:08:56] overall to do The big items on
[4:09:01] public projects is good also to
[4:09:02] offer you know what are
[4:09:03] the little administrative
[4:09:03] signatures Where's a little
[4:09:08] space for that that can be
[4:09:08] available to the public as
[4:09:09] well?
[4:09:09] I think that can be helpful and
[4:09:10] important.
[4:09:10] Thank you.
[4:09:10] Thank you.
[4:09:13] Thank you.
[4:09:14] >> Anthony Ralphs followed by
[4:09:19] Laurie Saldana City Council.
[4:09:19] >> Thank you for
[4:09:25] the presentation by the Audit
[4:09:25] group.
[4:09:26] I took a couple of notes on
[4:09:27] the things that I heard.
[4:09:27] I heard number one that they
[4:09:28] didn't finished undergrounding
[4:09:32] on time, that they didn't have
[4:09:32] standardized timelines and that
[4:09:33] the construction baseline for
[4:09:37] cost and schedule are rather
[4:09:37] that they didn't schedule
[4:09:38] pre-construction meetings.
[4:09:38] These are just the ways in
[4:09:42] which you need $1 billion
[4:09:43] profit in company every year
[4:09:44] has been out of compliance just
[4:09:44] some of the ways in which
[4:09:48] they've been out of compliance
[4:09:49] that I heard that I got to take
[4:09:50] notes on which it was hard to
[4:09:50] do because the representatives
[4:09:55] from sd g are so loud and
[4:09:55] they're talking right now when
[4:09:56] I'm trying to give
[4:09:56] the presentation and one of
[4:09:57] them is eating your popcorn so
[4:10:01] incredibly loudly that it's
[4:10:02] really difficult for me and
[4:10:02] it's really difficult for
[4:10:03] the public to have trust in me
[4:10:06] when they're talking in
[4:10:07] the middle of someone giving a
[4:10:08] presentation on how they're out
[4:10:08] of compliance and eating so
[4:10:12] loud that I can't even write
[4:10:12] down the notes as to all
[4:10:13] the ways in which they're out
[4:10:14] of compliance yet they're
[4:10:17] making $1 billion a year and
[4:10:18] they're asking for their
[4:10:18] franchise board renewal.
[4:10:19] >> Thank you does conclude your
[4:10:23] time.
[4:10:24] Lori Saldana followed by Vikas
[4:10:28] Whiskey Thank you.
[4:10:29] So ultimately I think we need
[4:10:29] to say is this meeting
[4:10:35] the needs of utility rate
[4:10:36] payers And there are many
[4:10:36] things here that if you're
[4:10:37] committed to improve customer
[4:10:41] service they were delays.
[4:10:41] We have a domino effect of
[4:10:42] missed deadlines and other
[4:10:47] things that delay the outcomes
[4:10:47] .
[4:10:48] So what are the consequences
[4:10:48] for this?
[4:10:49] That's my question When if you
[4:10:53] do a customer service survey
[4:10:53] and you find out that they're
[4:10:54] not meeting the needs of your
[4:10:55] customers, what are
[4:10:59] the consequences?
[4:11:00] What do you change?
[4:11:00] And I think that's been missing
[4:11:01] from these reports for the last
[4:11:05] few cycles Are the meeting
[4:11:06] formats available for people to
[4:11:07] participate are accessible to
[4:11:07] the public The ones that I
[4:11:11] happen to have in the middle of
[4:11:11] the day when most people are
[4:11:12] not able to participate I think
[4:11:13] that's problematic.
[4:11:17] So in general talking about
[4:11:18] undergrounding my family has
[4:11:23] had the same house for 60 years
[4:11:23] we've been paying into
[4:11:24] undergrounding is delay, delay,
[4:11:24] delay.
[4:11:31] So what are the consequences
[4:11:32] for delaying basic customer
[4:11:32] service?
[4:11:33] You know, there appeared to be
[4:11:34] nothing but because it's been
[4:11:38] followed by promises I'm not
[4:11:45] deeply informed on this issue
[4:11:46] and I'm mostly sympathetic to
[4:11:47] ratepayers But it's my
[4:11:51] understanding from city and
[4:11:51] union representatives that they
[4:11:52] are operating on their own land
[4:11:57] or land that they have leased
[4:11:57] or from their own funds over
[4:12:02] many years Now that doesn't
[4:12:03] mean that the city shouldn't
[4:12:04] take a role in ensuring that
[4:12:08] citizens are treated fairly.
[4:12:09] You should but I find it
[4:12:15] inexplicable that here you are
[4:12:15] investigating and reporting and
[4:12:20] auditing what sd, g and e does
[4:12:21] as a private business on mostly
[4:12:22] their own land.
[4:12:26] While you have refused to do
[4:12:27] any investigation or auditing
[4:12:32] of a private business or
[4:12:33] operating on our public
[4:12:34] parkland at the Torrey Pines
[4:12:39] Glider port, can any of you
[4:12:40] explain that inconsistency?
[4:12:41] >> Thank you.
[4:12:42] That does conclude your time.
[4:12:55] Says I thank you so much both
[4:12:56] to the auditors and
[4:12:57] the Franchise Compliance Review
[4:12:57] Committee for spending the time
[4:13:01] to evaluate our work Under
[4:13:01] the franchise agreements we
[4:13:02] knowledge of the independent
[4:13:06] auditor for the second year or
[4:13:06] the second time found no
[4:13:07] significant findings or
[4:13:08] deficiencies relating to
[4:13:12] performance on the franchise
[4:13:12] and related agreements.
[4:13:13] This reflects our commitment to
[4:13:14] meetings and to meeting
[4:13:17] the several hundred
[4:13:17] requirements under each of
[4:13:18] these ancillary franchise
[4:13:18] agreements.
[4:13:19] Of course we know we always
[4:13:23] have to improve.
[4:13:24] We'll continue to work on our
[4:13:25] processes and we take that
[4:13:25] responsibility seriously.
[4:13:29] We'd also like to recognize
[4:13:30] the Franchise Compliance Review
[4:13:31] Committee for the time and care
[4:13:31] they dedicated to this process
[4:13:35] After their extensive review
[4:13:35] including presentations from
[4:13:36] subject matter experts
[4:13:41] including the cpa and other
[4:13:42] stakeholders in the community.
[4:13:42] Your evaluation of our
[4:13:43] performance and your
[4:13:44] consideration of all the public
[4:13:47] input.
[4:13:48] Importantly, the committee
[4:13:49] found that we demonstrated
[4:13:49] overall compliance with
[4:13:50] the electric and gas franchise
[4:13:54] agreements as well as an mou.
[4:13:55] Thank you very much.
[4:13:55] All of you.
[4:13:56] Thank you.
[4:14:00] That concludes in-person public
[4:14:01] comment.
[4:14:01] We will now go to virtual
[4:14:02] public comment.
[4:14:05] I've started the five minute
[4:14:06] timer in council chambers and
[4:14:06] we will turn to the virtual
[4:14:11] queue in which there are
[4:14:12] currently three participants
[4:14:12] requesting to speak.
[4:14:13] We'll begin with John Stott.
[4:14:16] Please begin.
[4:14:24] >> Wow.
[4:14:25] Did they get it a a p a c, a d
[4:14:28] or an f?
[4:14:29] Can't tell you No.
[4:14:30] For $1 billion company you'd
[4:14:34] expect an a-plus.
[4:14:35] Second thing that's missing
[4:14:41] here is how much did the city
[4:14:42] or residents of the city of San
[4:14:47] Diego have to pay in litigation
[4:14:48] with f, c, g and e?
[4:14:52] How much damages did they do on
[4:14:58] the undergrounding You know, in
[4:14:59] the valuation that we had
[4:15:00] before the undergrounding Seems
[4:15:04] like we have to pay three times
[4:15:05] for the same undergrounding.
[4:15:05] And for the lawyers there
[4:15:10] amongst you the law fixtures
[4:15:11] should apply.
[4:15:15] This is not like San Francisco
[4:15:16] in any way.
[4:15:16] San Francisco is a takeover.
[4:15:21] Ours would be an end of a
[4:15:22] franchise or at least that we
[4:15:23] get the law for next year.
[4:15:23] >> Thank you.
[4:15:27] Thank you.
[4:15:27] All right.
[4:15:28] Our next speaker is John Lear.
[4:15:32] Please begin.
[4:15:33] >> Good afternoon.
[4:15:34] This has been a long one.
[4:15:39] I just really wish I could get
[4:15:40] a contract where when I screw
[4:15:40] up with a major installation
[4:15:44] like a nuclear power plant I
[4:15:45] get to build the customers for
[4:15:45] it.
[4:15:46] I don't even begin to
[4:15:49] understand this cost plus
[4:15:50] billing that we live under.
[4:15:51] I will tell you this Six months
[4:15:55] ago I had solar installed on
[4:15:55] the on the unit that I live in.
[4:15:56] Unfortunately I've not been
[4:15:57] able to take advantage of it
[4:16:01] until the last two months.
[4:16:02] But I will say this I generate
[4:16:03] twice as about twice the amount
[4:16:07] of power that I need in this
[4:16:07] household on that solar.
[4:16:13] So the rest of it goes back to
[4:16:13] my neighbors and the people
[4:16:14] around me.
[4:16:14] Unfortunately I'm not able to
[4:16:17] take advantage of the benefit
[4:16:18] of the reduced billing because
[4:16:23] for 3 or 4 months as the genie
[4:16:24] could get people out to inspect
[4:16:27] and approve and turn it on
[4:16:28] which is just outrageous.
[4:16:28] Anyway, get solar, get away
[4:16:34] from the grid and get rid as
[4:16:34] the genie.
[4:16:34] >> Thank you.
[4:16:35] Thank you.
[4:16:39] Our next speaker is caller with
[4:16:40] the last four digits 8700.
[4:16:44] Please begin.
[4:16:51] >> Thank you, Joy.
[4:16:51] It's turn.
[4:16:56] I don't support the renewal of
[4:16:56] the fda and the franchise
[4:16:57] agreement.
[4:17:01] My reasons are mostly in
[4:17:05] the last paragraph of
[4:17:06] the PowerPoint entitled
[4:17:06] Conclusion and I quote
[4:17:11] Conditional renewal supports
[4:17:12] rate payers in the city's
[4:17:16] objectives.
[4:17:17] At the same time, complaints
[4:17:18] alone doesn't solve concerns
[4:17:22] about affordability rates or
[4:17:22] long term value.
[4:17:27] Ultimately the Council must
[4:17:27] weigh both technical
[4:17:28] performance in broader public
[4:17:33] benefit in deciding whether to
[4:17:34] renew Dear Council.
[4:17:38] Dear Mayor do not renew It does
[4:17:39] not support repairs.
[4:17:44] It does not support the city
[4:17:44] objectives.
[4:17:45] We all know that.
[4:17:49] So let's be bold.
[4:17:50] Let's have the courage to say
[4:17:50] no.
[4:17:50] Thank you.
[4:17:53] That concludes your time This
[4:17:54] morning.
[4:17:54] Thank you.
[4:17:55] Thank you.
[4:17:59] That concludes public testimony
[4:17:59] on item 201.
[4:18:00] >> All right.
[4:18:01] Thank you, Deputy Clerk.
[4:18:04] With that this is an
[4:18:05] information item and no motions
[4:18:05] required.
[4:18:08] I'll turn it over to council
[4:18:08] members and jump in if nobody
[4:18:13] else wants to.
[4:18:14] So I will jump in.
[4:18:15] Again, thank you to the members
[4:18:19] of the franchise compliance
[4:18:19] agreement.
[4:18:20] I mean it's committee excuse
[4:18:20] me.
[4:18:21] It's an interesting animal that
[4:18:24] we've created and we appreciate
[4:18:24] your two year stint.
[4:18:25] You know, if I can make a pitch
[4:18:27] for you to come back and do
[4:18:28] another two years.
[4:18:29] i would be remiss if I did not
[4:18:32] do that.
[4:18:33] I want to speak to some of
[4:18:33] the things that were raised by
[4:18:37] the public.
[4:18:38] We have new faces doing utility
[4:18:39] undergrounding and our
[4:18:43] transportation department and
[4:18:43] they've done some serious
[4:18:47] changes to that that when we do
[4:18:48] the next two year review I
[4:18:49] don't think we're going to see
[4:18:53] those same problems because
[4:18:53] they've gotten much more
[4:18:54] aggressive not only with Genie
[4:18:57] but also with at&t and
[4:18:58] Spectrum,
[4:18:58] the telecommunications that
[4:19:02] also have aboveground lines.
[4:19:03] So I'm it didn't surprise me
[4:19:07] that there were some instances
[4:19:08] where there were problems going
[4:19:13] forward But new crew internally
[4:19:14] the city is doing a fantastic
[4:19:14] job.
[4:19:18] So I don't think we'll see it
[4:19:18] in the next audit We go
[4:19:19] forward.
[4:19:23] And to MR. Kozinski or Bob
[4:19:23] because I always pronounce your
[4:19:27] name wrong I did reach out to
[4:19:28] the city auditor to actually
[4:19:29] look into the latter part.
[4:19:32] You think I don't do anything?
[4:19:32] And the city auditor reported
[4:19:36] that they have heard these
[4:19:37] allegations multiple times and
[4:19:37] quote Our investigations
[4:19:42] determined that the allegations
[4:19:42] of fraud, waste and abuse were
[4:19:43] unsubstantiated and that
[4:19:47] the qualification requirements
[4:19:48] for him claiming that the clerk
[4:19:48] report were reasonable.
[4:19:51] That comes from our independent
[4:19:51] city auditor.
[4:19:52] Take that for what it's worth.
[4:19:55] But again thank you to
[4:19:56] the auditors for the good work
[4:19:57] that you do under the franchise
[4:20:01] agreement.
[4:20:02] Thank you again for the good
[4:20:02] work that you do.
[4:20:03] And then again the volunteers
[4:20:06] who stepped up for
[4:20:07] the committee very much
[4:20:07] appreciate it.
[4:20:08] With that we will go to council
[4:20:10] member Eli Rivera.
[4:20:11] >> All right.
[4:20:11] Thank you.
[4:20:12] Council PRESIDENT I just wanna
[4:20:15] say thank you.
[4:20:16] It's a ton of time and effort
[4:20:17] that goes into this volunteer
[4:20:20] work that you do and it is
[4:20:21] important and is one of
[4:20:24] the things that distinguishes
[4:20:25] the way that we've approached
[4:20:30] our our relationship ship with
[4:20:30] Jeannie um and with this
[4:20:31] franchise agreement in
[4:20:35] comparison to what had been
[4:20:35] done in the past.
[4:20:36] I think that that positions us
[4:20:39] better for the future and I'm
[4:20:40] very grateful for the work that
[4:20:40] you do to help us do that.
[4:20:41] >> Thank you.
[4:20:41] Council PRESIDENT.
[4:20:44] All right.
[4:20:44] Thank you.
[4:20:45] Council Yellow Rivera Not
[4:20:45] seeing anybody else in
[4:20:46] the lights.
[4:20:49] I will close this item up And
[4:20:50] again thank you for the good
[4:20:52] work and your patience on a
[4:20:57] long afternoon.
[4:21:01] Okay.
[4:21:02] And with that deputy clerk
[4:21:05] please introduce item 203 Thank
[4:21:09] you, Council PRESIDENT Item 2
[4:21:10] or 3 approval of a Fifth
[4:21:11] Amendment to the agreement with
[4:21:14] Path of San Diego for
[4:21:14] the Coordinated Street Outreach
[4:21:15] Program.
[4:21:15] >> All right.
[4:21:19] Thank you for that.
[4:21:20] This is a Fifth Amendment to an
[4:21:21] agreement.
[4:21:21] It's a little bit of a holdover
[4:21:24] Would you guys be okay with
[4:21:25] waiving the presentation given
[4:21:28] that this is the Fifth
[4:21:28] Amendment?
[4:21:33] All right, So settle yourselves
[4:21:34] in and Deputy clerk proceed
[4:21:40] with public comment on item 203
[4:21:41] .
[4:21:41] Thank you.
[4:21:42] Council PRESIDENT We will begin
[4:21:46] with an in-person comment
[4:21:46] allegedly Order a please come
[4:21:47] forward.
[4:21:59] You'll have one minute to speak
[4:22:00] And again you guys want to get
[4:22:01] out of here.
[4:22:02] But again the presentations
[4:22:03] aren't for you guys.
[4:22:04] It's also for the people.
[4:22:05] All right.
[4:22:08] So this is interesting because
[4:22:09] you know, homelessness is
[4:22:13] running rampant though It's
[4:22:14] good for business when it is
[4:22:15] it's fantastic.
[4:22:18] There's so much money to be
[4:22:19] made off of these people And
[4:22:20] I'm wondering how good are they
[4:22:23] doing if just right outside
[4:22:24] the doors here there's homeless
[4:22:28] people sleeping every night.
[4:22:29] So I mean is that money well
[4:22:33] spent And when there is no, you
[4:22:34] know, path to another shelter
[4:22:38] or you know, some kind of home
[4:22:39] for like a hamster wheel and we
[4:22:42] just keep going around.
[4:22:43] It's like let's give more money
[4:22:44] and maybe that will help fix
[4:22:44] it.
[4:22:47] No, we don't have anywhere for
[4:22:47] them to go But we have these
[4:22:48] people out there just telling
[4:22:52] people, you know, that there's
[4:22:53] nowhere for them to go but then
[4:22:54] we're going to arrest them or
[4:22:57] take their stuff, you know,
[4:22:58] because they're out there.
[4:22:59] So it seems like it's working
[4:22:59] out.
[4:23:02] Maybe you guys could get some
[4:23:03] more money and throw it at it.
[4:23:03] >> Thank you.
[4:23:06] That concludes your time.
[4:23:07] Our next speaker is Blair
[4:23:08] Beekman followed by Anthony
[4:23:11] Ralphs.
[4:23:12] Hi, we're Beekman.
[4:23:16] I'm filling improving today I
[4:23:17] guess my my knowledge and depth
[4:23:21] of community issues is pretty
[4:23:25] feeble but gosh darn it this is
[4:23:26] an item that I think really
[4:23:27] needs a public presentation.
[4:23:32] I'm the work that does for our
[4:23:35] unhoused has been incredible
[4:23:35] especially in the past few
[4:23:35] years.
[4:23:36] They've proven how much they
[4:23:39] can house people and we don't
[4:23:40] just talk about shelters we can
[4:23:41] actually be talking about
[4:23:41] housing issues.
[4:23:44] I really ask the council to if
[4:23:45] they can you know, be asking
[4:23:49] questions after public
[4:23:50] presentation and that they can
[4:23:50] still make their presentation
[4:23:54] that would be great too.
[4:23:54] It's really important to be
[4:23:58] hearing this item and I'm
[4:23:59] really surprised we're avoiding
[4:24:02] it out of efficiency and to get
[4:24:07] home early.
[4:24:08] This is an important step.
[4:24:09] I hope we make this step more
[4:24:11] open and clear in our public
[4:24:11] future.
[4:24:12] >> Thank you.
[4:24:18] Anthony Ralphs Good afternoon
[4:24:23] City Council Excuse me I
[4:24:23] support the approval of
[4:24:24] the Fifth Amendment to
[4:24:28] the agreement with the path San
[4:24:28] Diego Program for
[4:24:29] the Coordinated Street Outreach
[4:24:32] Program.
[4:24:33] At a time when we've seen so
[4:24:34] many of our homeless programs
[4:24:37] and outreach programs cut
[4:24:38] particularly the Alpha project
[4:24:42] particularly I believe it was I
[4:24:46] forget the good the good center
[4:24:47] I'm blanking on the full name
[4:24:47] of it.
[4:24:48] But anyway we've had so many
[4:24:51] homeless programs cut and this
[4:24:52] is a matter of public safety
[4:24:53] and I know how quick all are to
[4:24:56] defend public safety.
[4:24:57] So I would expect that we could
[4:25:01] have that same approach with
[4:25:02] our homeless, that same
[4:25:03] compassion and empathy and that
[4:25:06] these programs can pan out and
[4:25:07] help the people that they are
[4:25:07] intended to serve.
[4:25:10] Thank you.
[4:25:11] Thank you.
[4:25:15] That concludes in-person public
[4:25:16] comment.
[4:25:16] I've started the five minute
[4:25:17] timer and council chambers.
[4:25:20] We will now turn to the virtual
[4:25:21] queue in which there are
[4:25:22] currently three participants
[4:25:25] requesting to speak.
[4:25:29] We will begin with color with
[4:25:30] the last four digits 8700
[4:25:39] Please begin and thank you Joy
[4:25:40] Senator Yes I support this item
[4:25:44] passed.
[4:25:45] It is absolutely fabulous.
[4:25:45] I don't have personal
[4:25:49] experience with them but I had
[4:25:50] a wonderful experience with
[4:25:50] the homeless couple years ago
[4:25:54] when I moved here and I
[4:25:54] followed their experience with
[4:25:58] past and how they helped them
[4:25:59] and it was very beautiful.
[4:26:03] The only concern I have for
[4:26:04] Path it seems like a few years
[4:26:05] ago they were having trouble
[4:26:08] with really paying their people
[4:26:09] enough to work and perhaps they
[4:26:12] were having trouble filling
[4:26:13] positions that could have been
[4:26:14] corrected And I MAY be way off
[4:26:17] base on that but that just
[4:26:18] popped up when I thought about
[4:26:19] what I was going to say.
[4:26:23] So love path just support them
[4:26:23] wherever we can and love you
[4:26:28] Path for what you do for
[4:26:29] the homeless and that affects
[4:26:31] all of San Diego Love to all
[4:26:32] Thank you.
[4:26:32] Next is Natalie Roski.
[4:26:36] Please begin.
[4:26:37] >> Hi Natalie.
[4:26:42] Rush here District seven.
[4:26:42] So I've been doing some
[4:26:43] research and I'm really getting
[4:26:47] good at my research I think so
[4:26:47] I'm kind of confused on what
[4:26:51] I'm researching and what this
[4:26:52] path San Diego Fifth Amendment
[4:26:56] means because it's telling me
[4:27:00] that the resolution before it
[4:27:01] describes this routine one year
[4:27:04] extension flat funding at 13.6
[4:27:05] million and change.
[4:27:05] But there's an underlining
[4:27:09] amendment does something that
[4:27:10] the resolution never mentions
[4:27:11] It adds a new clause
[4:27:15] acknowledge is that h m c.
[4:27:16] S and c I e the data systems
[4:27:19] used to track and house
[4:27:20] residents are some surveillance
[4:27:24] technology under the trust
[4:27:24] ordinance.
[4:27:29] So moving forward and improving
[4:27:29] are these systems being used
[4:27:33] currently?
[4:27:34] Is there understanding
[4:27:38] the grace period and is this
[4:27:39] being acknowledged or is this
[4:27:43] was known about is it
[4:27:44] the question?
[4:27:44] Thank you.
[4:27:48] That does conclude your time.
[4:27:49] Next speaker is John Leah.
[4:27:52] Please begin.
[4:27:53] Good afternoon.
[4:27:57] Council members.
[4:27:58] It's been a long one but I did
[4:27:59] want to make time to update you
[4:28:03] that I actually that
[4:28:04] the individual that came out
[4:28:06] front of city Council in my rv
[4:28:07] for a period of time I'm not
[4:28:12] sure where ultimately that
[4:28:12] situation is resolved but I
[4:28:13] will tell you that we've run
[4:28:16] into these cases all the time.
[4:28:17] I love that they're an amazing
[4:28:17] provider.
[4:28:22] We have had nothing but a high
[4:28:22] regard for much of their
[4:28:23] service.
[4:28:23] So this is not necessarily
[4:28:26] related to path but we do not
[4:28:27] have a mechanism for people who
[4:28:30] are struggling and falling
[4:28:31] through the cracks to raise
[4:28:32] their hand and go Hey, what's
[4:28:35] going on?
[4:28:36] And I don't think that we are
[4:28:37] capturing the number of people
[4:28:40] that are returning to our
[4:28:44] system effectively because
[4:28:45] after two years if you come
[4:28:46] back into the system are hmas
[4:28:49] recognize here is a brand new
[4:28:49] person anyway we need to be
[4:28:53] listening to our customers.
[4:28:53] We're still not and I would
[4:28:54] hope that we could take that
[4:28:54] seriously.
[4:28:57] Thank you.
[4:28:58] Thank you.
[4:28:58] That does conclude public
[4:29:03] comment on item 203.
[4:29:03] All right.
[4:29:04] Thank you, Deputy Clerk.
[4:29:07] This is an item for discussion
[4:29:08] and we will need a motion.
[4:29:11] So we'll turn over first to
[4:29:12] Council member Whipper Thank
[4:29:15] you Council PRESIDENT I will
[4:29:16] make the motion to approve
[4:29:17] the staff recommendation.
[4:29:21] This presentation is online.
[4:29:21] Both the PowerPoint and
[4:29:25] the staff report are on line
[4:29:26] for everybody to access and
[4:29:27] they've been online for
[4:29:30] everybody to access for several
[4:29:31] days now.
[4:29:35] This does not add more money to
[4:29:36] the contract.
[4:29:40] It extends the term of
[4:29:41] the contract.
[4:29:41] These response teams that I
[4:29:45] have has out there assess
[4:29:46] people who are experiencing
[4:29:50] homelessness and have helped
[4:29:51] hundreds of people not just get
[4:29:55] into emergency shelters but
[4:29:56] also into housing both
[4:30:00] temporary and permanent
[4:30:00] housing.
[4:30:01] And that's very important
[4:30:01] because I am deeply concerned
[4:30:05] about the unavailability of
[4:30:05] emergency shelter.
[4:30:10] We need more shelter beds to be
[4:30:14] available to people.
[4:30:15] But the good news is that path
[4:30:19] is also directing people to
[4:30:20] housing And as long as we're
[4:30:24] getting people off the streets
[4:30:25] and directly into housing,
[4:30:26] that's a good thing.
[4:30:26] One of the most important
[4:30:29] things we could be doing and I
[4:30:29] will approve move the staff
[4:30:30] recommendation.
[4:30:34] All right.
[4:30:34] Thank you, sir.
[4:30:35] So we have a motion by council
[4:30:36] member Whipper and we'll go
[4:30:36] next to Council PRESIDENT Pro
[4:30:39] Tem Lee.
[4:30:39] Thank you Council PRESIDENT And
[4:30:40] thank you to path for their
[4:30:41] continued work as well.
[4:30:43] I'll second this motion.
[4:30:44] >> All right so we have a
[4:30:45] motion by Councilmember Whipper
[4:30:46] and a second by Council
[4:30:47] PRESIDENT Pro Tem Lee to move
[4:30:47] the staff recommendation.
[4:30:51] I see Council member John
[4:30:52] Wolpert sup Thank you very much
[4:30:55] and thank you for all the work
[4:30:56] that path does as well.
[4:30:57] I appreciate it.
[4:30:57] I know that does increase
[4:31:01] the amount of the contract but
[4:31:02] it is the Fifth Amendment.
[4:31:02] So are we thinking about doing
[4:31:03] another rfp at some point or a
[4:31:05] new scope of services or what's
[4:31:06] the plan?
[4:31:06] We released the rfp in APRIL of
[4:31:10] this year so we intend to
[4:31:11] fulfill the awardees of the rfp
[4:31:15] in this next fiscal year and
[4:31:16] that will then supersede this
[4:31:16] contract.
[4:31:17] Okay.
[4:31:17] All right.
[4:31:20] Thank you very much.
[4:31:21] And Sara, could you introduce
[4:31:22] yourself for the record since
[4:31:22] you did a response?
[4:31:23] Sorry.
[4:31:25] Third Dorman, director of
[4:31:26] Homelessness Strategies and
[4:31:26] Solutions Deanna would be very
[4:31:27] mad at me if I didn't get that
[4:31:30] done All right, I I don't see
[4:31:31] anybody else in the light.
[4:31:32] I'll just add my Thank you for
[4:31:36] managing that And to the folks
[4:31:38] at path we have a motion by
[4:31:39] Councilmember Lipper and a
[4:31:39] second by Council PRESIDENT Pro
[4:31:40] Tem Lee to move the staff
[4:31:43] recommendation please call
[4:31:44] the roll Deputy Clerk I have
[4:31:44] set up the voting system.
[4:31:57] Please cast your vote.
[4:32:01] The item passes unanimously
[4:32:02] with District two and District
[4:32:02] eight absent.
[4:32:02] >> All right.
[4:32:06] And for meeting management
[4:32:06] the reason we did that was to
[4:32:07] make sure that we have a quorum
[4:32:11] when it comes to not agenda
[4:32:11] public comment at the end.
[4:32:12] So for those that might
[4:32:15] participate remotely stay
[4:32:15] tuned.
[4:32:16] We MAY or MAY not have a quorum
[4:32:21] to have remote not a agenda
[4:32:21] public comment We will
[4:32:22] definitely do it for in-person
[4:32:25] non agenda Public comment
[4:32:26] meeting Management All right
[4:32:30] Deputy Clerk please introduce
[4:32:34] item 202 Thank you Council
[4:32:34] PRESIDENT Item 2o2
[4:32:35] Establishment of a cannabis
[4:32:38] Delivery Services business
[4:32:39] permit and enhanced commercial
[4:32:43] cannabis enforcement mechanisms
[4:32:44] .
[4:32:44] All right.
[4:32:45] I believe this is coming from
[4:32:45] district seven.
[4:32:48] So Councilmember Camp here do
[4:32:49] you want to have some opening
[4:32:49] remarks?
[4:32:50] Thank you.
[4:32:50] Counsel turn it over to your
[4:32:51] staff.
[4:32:51] Yes.
[4:32:52] Council PRESIDENT, thank you
[4:32:53] very much for that.
[4:32:54] And before we begin with
[4:32:54] the staff presentation, I'd
[4:32:55] like to take a moment to
[4:32:57] recognize the amount of work
[4:32:58] that's gone in today's action
[4:32:59] over the past two years not
[4:32:59] only from my office but from
[4:33:02] the mayor's office and cannabis
[4:33:03] workers and businesses, members
[4:33:03] of the public who've engaged
[4:33:07] with us throughout this
[4:33:07] process.
[4:33:08] Cannabis delivery is a complex
[4:33:11] policy issue and the item we
[4:33:11] are putting forward for
[4:33:12] consideration today is one that
[4:33:13] puts accountability, safety and
[4:33:17] workers first.
[4:33:17] So with that I'll turn over to
[4:33:18] Summer Patten, Deputy director
[4:33:21] of policy for my office for
[4:33:22] the presentation.
[4:33:22] >> Thank you.
[4:33:23] i need ten minutes for
[4:33:26] the presentation when you're
[4:33:26] ready.
[4:33:27] >> Good afternoon.
[4:33:27] Council PRESIDENT Lacob and
[4:33:31] council members I'm presenting
[4:33:32] here today on behalf of
[4:33:32] Councilmember Campo
[4:33:33] the establishment of a cannabis
[4:33:35] delivery services business
[4:33:36] permit and enhanced commercial
[4:33:40] cannabis enforcement mechanisms
[4:33:40] .
[4:33:41] >> The proposed actions today
[4:33:45] are to establish a cannabis
[4:33:46] delivery business permit
[4:33:46] category for commercial
[4:33:49] cannabis operators entering
[4:33:50] the city of San Diego to
[4:33:51] conduct cannabis delivery.
[4:33:55] I'm sorry, can you hold on?
[4:33:56] We're not displaying.
[4:33:56] There we go.
[4:33:56] Okay.
[4:33:57] Very nice.
[4:33:57] My apologies for
[4:33:59] the interruption.
[4:34:00] Go ahead.
[4:34:00] Good.
[4:34:01] So that's the first action.
[4:34:03] The second is to establish a
[4:34:04] private right of action to
[4:34:05] allow eligible entities to
[4:34:08] pursue step one enforcement
[4:34:09] against operators that violate
[4:34:09] local commercial cannabis
[4:34:10] regulations.
[4:34:13] And third is to revise
[4:34:14] penalties for noncompliance to
[4:34:17] a maximum of $20,000 per day
[4:34:18] for court imposed civil
[4:34:21] penalties and $20,000 per
[4:34:21] violation for administratively
[4:34:26] imposed civil penalties not to
[4:34:26] exceed $500,000 per parcel or
[4:34:30] business and up to 10,000 per
[4:34:31] violation for administrative
[4:34:32] abatement penalties not to
[4:34:35] exceed 500,000 per parcel or
[4:34:36] structure.
[4:34:40] And before we discuss
[4:34:40] the proposed changes, it's
[4:34:41] helpful to review the licensing
[4:34:42] system around commercial
[4:34:44] cannabis.
[4:34:45] Cannabis in California is
[4:34:46] regulated on a dual track
[4:34:49] system meaning that cannabis is
[4:34:50] regulated both by the state and
[4:34:54] by a businesses, city or county
[4:34:54] .
[4:34:55] And at the state level there
[4:34:55] are two types of retail
[4:34:56] licenses.
[4:34:59] There is a non storefront
[4:34:59] retailer or delivery only
[4:35:00] business which is what we're
[4:35:01] talking about today.
[4:35:03] And there are storefront
[4:35:04] retailers or brick and mortar
[4:35:08] businesses.
[4:35:09] And while state law allows
[4:35:09] cannabis delivery on public
[4:35:12] roads, state law also
[4:35:13] explicitly states that local
[4:35:14] jurisdictions have authority to
[4:35:17] regulate cannabis businesses
[4:35:18] including through business
[4:35:18] license requirements.
[4:35:19] Cities and counties can
[4:35:22] prohibit cannabis of all
[4:35:23] business types some or
[4:35:27] implement their own regulations
[4:35:27] .
[4:35:28] And as shown on the map, this
[4:35:28] creates a patchwork of local
[4:35:29] regulations throughout
[4:35:34] the state.
[4:35:35] >> So if a customer in San
[4:35:36] Diego is ordering cannabis for
[4:35:39] delivery, it can either come
[4:35:40] from a permitted retailer in
[4:35:41] the city a state licensed
[4:35:44] business entering the city to
[4:35:44] deliver or a business operating
[4:35:49] outside of legal requirements.
[4:35:49] Currently the city only permits
[4:35:50] storefront or brick and mortar
[4:35:54] cannabis retailers.
[4:35:54] These are the ones that are
[4:35:55] limited to four per council
[4:35:56] district and they're required
[4:35:59] to obtain a conditional use
[4:35:59] permit.
[4:36:00] They are allowed to deliver
[4:36:00] direct to consumer as part of
[4:36:04] that conditional use permit.
[4:36:04] The city allows state licensed
[4:36:05] delivery from outside of
[4:36:08] the city If that business
[4:36:09] registers for a business tax
[4:36:09] certificate with
[4:36:10] the Treasurer's office and
[4:36:13] remits monthly business taxes.
[4:36:14] The city's land use code does
[4:36:18] not allow delivery only
[4:36:18] non-food storefront retail
[4:36:19] establishments within city
[4:36:19] limits.
[4:36:20] And this ordinance does not
[4:36:22] change that.
[4:36:23] And it does not propose any new
[4:36:27] land uses.
[4:36:28] Cannabis delivery is extremely
[4:36:29] difficult to regulate because
[4:36:32] the operations are mobile.
[4:36:32] And cities can only regulate
[4:36:33] what occurs within their
[4:36:33] jurisdiction.
[4:36:37] And cannabis businesses can
[4:36:37] easily avoid those regulations.
[4:36:38] And on the screen is an example
[4:36:42] of a listing on weed maps for a
[4:36:43] business advertising in North
[4:36:43] Park.
[4:36:46] That's based in Alameda County
[4:36:47] and I'm looking at the license
[4:36:48] on the Department of Cannabis
[4:36:51] Control website.
[4:36:52] It's expired but they currently
[4:36:56] advertise 30 to 60 minute
[4:36:56] deliveries in San Diego.
[4:37:00] So here we can see
[4:37:01] the difference between what's
[4:37:02] advertised to consumers and
[4:37:02] where the current the city
[4:37:05] currently permits cannabis
[4:37:05] retail.
[4:37:06] The image on the left are
[4:37:10] delivery only offerings listed
[4:37:10] on weed maps in San Diego.
[4:37:11] And some of these businesses
[4:37:15] are advertising is based in San
[4:37:16] Diego and are licensed to
[4:37:16] the state.
[4:37:17] Some are not licensed through
[4:37:20] the state or operate on expired
[4:37:20] permits or are not following
[4:37:21] all state and local
[4:37:24] requirements.
[4:37:24] State licensing a strict and
[4:37:25] requires those businesses to
[4:37:28] return to a licensed premise
[4:37:29] after a delivery route.
[4:37:30] To use license facilities to
[4:37:30] restock their product.
[4:37:34] To dispatch deliveries only
[4:37:35] after orders are received and
[4:37:35] logged.
[4:37:38] And it also requires delivery
[4:37:39] of cannabis goods to be
[4:37:40] performed by a driver employed
[4:37:43] by that retailer.
[4:37:44] >> For the retailers to
[4:37:44] maintain an accurate list of
[4:37:45] their delivery employees to
[4:37:48] confirm ages and identities of
[4:37:48] customers.
[4:37:49] And for a delivery drivers to
[4:37:50] carry copies of the retailers
[4:37:53] license id and an employee
[4:37:54] badge.
[4:37:54] Which are just a few examples
[4:37:55] of the numerous other state
[4:37:58] requirements as part of
[4:37:59] commercial cannabis delivery.
[4:38:03] So with that the goals for this
[4:38:04] ordinance are to create a
[4:38:08] centralized regulatory check
[4:38:09] point for cannabis delivery
[4:38:09] services entering the city of
[4:38:13] San Diego.
[4:38:13] It's to increase the cost of
[4:38:14] noncompliance through raise
[4:38:17] penalties.
[4:38:18] And third, it's to allow
[4:38:18] private civil action where
[4:38:19] the city currently lacks staff
[4:38:22] capacity.
[4:38:23] Next slide.
[4:38:23] So with stronger civil
[4:38:28] enforcement the goal is to
[4:38:29] incentivize registration for a
[4:38:29] cannabis delivery services
[4:38:33] business permit and encourage
[4:38:33] local compliance.
[4:38:34] This requirement would be in
[4:38:37] addition to the business tax
[4:38:38] certificate and cannabis
[4:38:39] business tax currently required
[4:38:39] and administered through
[4:38:42] the City Treasurer's office.
[4:38:43] So all three of those processes
[4:38:44] will be administered by
[4:38:47] the city Treasurer's office.
[4:38:47] Cannabis delivery businesses
[4:38:48] entering into the city of San
[4:38:52] Diego would be required to
[4:38:53] obtain the permit.
[4:38:53] This does not include current
[4:38:57] cup holders as delivery
[4:38:58] services are already permitted
[4:38:58] and regulated through their
[4:39:02] conditional use permit and they
[4:39:03] are subject to an annual
[4:39:03] cannabis fee at around $15,000
[4:39:04] a year.
[4:39:07] The application requirements
[4:39:08] are modeled off of the City of
[4:39:09] Ventura which has a similar
[4:39:12] license and would require a
[4:39:13] copy of the business's state
[4:39:13] retail license a copy of their
[4:39:16] business tax certificate
[4:39:17] information of all owners and
[4:39:21] employees.
[4:39:22] Proof that employees are direct
[4:39:22] employees of the delivery
[4:39:26] service as required by state
[4:39:26] law.
[4:39:27] And the fee amount would be
[4:39:30] determined in a future action
[4:39:31] to determine the exact costs
[4:39:32] recoverable amounts related to
[4:39:38] the registration or permit
[4:39:38] expense.
[4:39:43] So the proposed enforcement
[4:39:43] changes are to increase civil
[4:39:44] penalties in three categories
[4:39:47] in the code regulating
[4:39:48] commercial cannabis operations.
[4:39:49] The first is to increase court
[4:39:52] awarded civil penalties for
[4:39:52] commercial cannabis violations
[4:39:53] up to $20,000 per day for
[4:39:57] cannabis business.
[4:39:58] The second is to increase
[4:39:58] administrative civil penalties
[4:40:01] for violations up to $20,000
[4:40:02] per day not to exceed 500,000
[4:40:02] per business.
[4:40:06] And third, this ordinance
[4:40:07] defines cannabis violations as
[4:40:10] a public nuisance which would
[4:40:11] then allow the city to abate
[4:40:12] violations if there's capacity.
[4:40:15] The penalty amounts are aligned
[4:40:16] with recent updates to land
[4:40:17] development code which was
[4:40:20] updated at $10,000 provi lation
[4:40:21] not to exceed 500,000 per
[4:40:24] parcel.
[4:40:25] But the significant enforcement
[4:40:26] change is to introduce a
[4:40:29] private right of action for
[4:40:29] cannabis related code
[4:40:29] violations.
[4:40:30] Private right of action are
[4:40:33] more commonly used in labor law
[4:40:34] but was implemented to allow
[4:40:35] civil enforcement against
[4:40:35] cannabis violations most
[4:40:38] recently through ab 1171 which
[4:40:39] was implemented in 2024.
[4:40:43] The ordinance proposes
[4:40:44] establishing the private right
[4:40:45] of action to allow legal
[4:40:48] cannabis businesses or labor
[4:40:48] organizations representing
[4:40:49] cannabis workers to file civil
[4:40:53] actions to enforce compliance.
[4:40:54] This means that a licensed
[4:40:55] cannabis business could sue a
[4:40:55] business if they can establish
[4:40:58] that a violation of this
[4:40:59] ordinance occurred within city
[4:41:02] limits and any penalties
[4:41:03] recovered would be distributed
[4:41:04] between the city for
[4:41:04] enforcement and the entity
[4:41:07] bringing the civil action 65%
[4:41:08] to 35%.
[4:41:09] And this distribution was
[4:41:13] modeled after the private
[4:41:13] Attorney General's act or paga
[4:41:16] which was updated in 2020 for.
[4:41:17] So with that the recommended
[4:41:21] action today is to approve
[4:41:22] amendments to Chapter four
[4:41:23] Article two Division 15 of
[4:41:26] the San Diego Municipal Code to
[4:41:27] establish a cannabis delivery
[4:41:28] permit business permit category
[4:41:31] for commercial cannabis
[4:41:31] operators entering the city of
[4:41:32] San Diego to conduct delivery
[4:41:36] to create a private right of
[4:41:36] action allowing eligible
[4:41:37] entities including state
[4:41:38] certified cannabis retailers
[4:41:41] and labor unions representing
[4:41:42] cannabis workers to pursue
[4:41:42] civil enforcement against
[4:41:46] operators that violate local
[4:41:46] commercial cannabis regulations
[4:41:47] and to revise penalties for
[4:41:50] noncompliance to a maximum of
[4:41:51] $20,000 per day for court
[4:41:52] imposed civil penalties.
[4:41:54] 20,000 per violation for
[4:41:55] administratively imposed
[4:41:59] penalties and up to $10,000 per
[4:41:59] violation for administrative
[4:42:03] abatement penalties.
[4:42:04] And that concludes my
[4:42:04] presentation.
[4:42:04] Thank you.
[4:42:05] All right.
[4:42:08] Thank you very much for
[4:42:09] the work and the presentation.
[4:42:10] Now I'll turn it over to
[4:42:10] the office of the rba for
[4:42:14] comment.
[4:42:14] >> Thank you.
[4:42:15] Council PRESIDENT Sergio
[4:42:15] Leclaire from the iab his
[4:42:17] office as presented by staff
[4:42:18] The this proposal would make
[4:42:19] four main changes to
[4:42:22] the municipal code.
[4:42:23] First they would create a new
[4:42:23] permit category specifically
[4:42:26] for cannabis businesses that
[4:42:27] are based outside the city but
[4:42:28] deliver cannabis products to
[4:42:31] customers within city limits.
[4:42:32] Consistent with the status quo.
[4:42:36] This proposal will not permit
[4:42:37] delivery only businesses based
[4:42:37] within the city.
[4:42:41] Second, it would establish a
[4:42:42] private right of action
[4:42:42] allowing compliant cannabis
[4:42:46] businesses and representative
[4:42:47] labor organizations to pursue
[4:42:47] civil action against operators
[4:42:51] without a civil city permit
[4:42:52] without a valid city permit.
[4:42:56] Civil penalties recoverable in
[4:42:56] this manner would be shared
[4:42:57] with the city.
[4:43:01] Third, it will classify
[4:43:01] cannabis businesses without a
[4:43:02] city permit as a public
[4:43:02] nuisance.
[4:43:05] And lastly it would separate.
[4:43:06] It would update fines for those
[4:43:06] that fail to comply with
[4:43:10] the city's cannabis permitting
[4:43:10] requirements.
[4:43:11] Based on our conversations with
[4:43:11] relevant departments.
[4:43:15] The fiscal impact of this
[4:43:15] proposal is uncertain but MAY
[4:43:19] not be substantial.
[4:43:20] There are three noteworthy
[4:43:21] sources of potential revenue
[4:43:24] outlined in the proposal.
[4:43:25] First is permitting fees.
[4:43:26] Second is city imposed fines.
[4:43:29] And then third is the city's
[4:43:30] share of civil penalties
[4:43:31] recovered through private right
[4:43:34] of action which would be one
[4:43:34] time in nature.
[4:43:38] Regarding permitting fees,
[4:43:39] the number of businesses likely
[4:43:39] to seek a new delivery permit
[4:43:43] is limited currently to conduct
[4:43:44] business including deliveries
[4:43:44] within the city.
[4:43:47] Cannabis businesses outside
[4:43:48] city limits must obtain a
[4:43:49] business tax certificate and
[4:43:52] remit cannabis business tax.
[4:43:53] The city Treasurer's office
[4:43:53] indicated that there are five
[4:43:58] of these compliant businesses.
[4:43:58] Staff noted that if a new
[4:43:59] permit is established these
[4:44:03] five businesses are expected to
[4:44:03] obtain the new permit in
[4:44:07] addition to the business tax to
[4:44:07] cannabis delivery services that
[4:44:11] do not currently have business
[4:44:12] .
[4:44:12] Business tax ratification,
[4:44:13] however, would likely not
[4:44:16] comply with additional
[4:44:17] permitting requirement given
[4:44:18] the small number of affected
[4:44:21] businesses Any permit fee
[4:44:21] revenue as well as cannabis
[4:44:22] business tax revenue would
[4:44:23] likely be limited unless
[4:44:26] private rights of action compel
[4:44:27] enforcement.
[4:44:31] Regarding fines we found that
[4:44:32] the city currently does not
[4:44:33] receive currently receives
[4:44:33] minimal city issued penalty
[4:44:36] revenue from delivery operators
[4:44:37] that do not comply with
[4:44:37] the city's current regulations.
[4:44:41] Therefore, even with
[4:44:42] adjustments to the fines city
[4:44:43] issued penalty revenue would
[4:44:46] likely remain minimal.
[4:44:46] The private Right of action
[4:44:51] provision offers an additional
[4:44:51] enforcement tool for private
[4:44:52] entities.
[4:44:55] Though state law allows
[4:44:56] licensed cannabis businesses
[4:45:00] including those permitted by by
[4:45:01] the city to pursue civil action
[4:45:01] against operators without a
[4:45:05] state license, cannabis
[4:45:06] license.
[4:45:06] The city's city attorney's
[4:45:07] office has not found any
[4:45:11] reported cases of such
[4:45:11] lawsuits.
[4:45:11] So it's unclear whether
[4:45:12] eligible parties would choose
[4:45:16] to pursue civil action under
[4:45:17] this proposal.
[4:45:18] As noted by the presentation,
[4:45:21] however, the state's provision
[4:45:21] has a higher burden of proof
[4:45:22] and a more limited financial
[4:45:23] incentive Compared to this
[4:45:26] proposal.
[4:45:27] Additionally, this proposal
[4:45:27] would also allow compliant city
[4:45:28] businesses to pursue civil
[4:45:31] action against operators
[4:45:32] without a city permit work
[4:45:33] orders regardless of whether
[4:45:36] they have a state issued
[4:45:41] cannabis license or not or
[4:45:42] the intent of this proposal is
[4:45:43] to regulate state licensed
[4:45:43] cannabis businesses not
[4:45:46] complying with city regulations
[4:45:47] or unregulated operators.
[4:45:48] We note that the greater
[4:45:48] compliance challenge lies
[4:45:52] within with cannabis delivery
[4:45:52] businesses that operate
[4:45:53] illicitly without state issued
[4:45:57] licenses or illicit operators
[4:45:58] since again they're unlikely to
[4:46:02] comply with the new additional
[4:46:03] local permit requirement.
[4:46:03] Additionally, since this
[4:46:04] proposal doesn't increase
[4:46:07] the city's enforcement levels,
[4:46:08] the permit and fines provision
[4:46:09] of this proposal MAY not
[4:46:13] significantly improve
[4:46:13] compliance among illicit or
[4:46:14] unregulated operators and
[4:46:17] materially increase the city's
[4:46:18] revenues.
[4:46:19] Unless a private right of
[4:46:22] action compels enforcement
[4:46:23] During our discussions with
[4:46:24] the Development Services
[4:46:28] Department and the Treasurer
[4:46:29] they raise concerns regarding
[4:46:29] implementation.
[4:46:30] These operational concerns
[4:46:34] include uncertainty over
[4:46:35] whether which new which
[4:46:35] department would enforce
[4:46:40] the new perimeter permit or
[4:46:40] what enforcement of the new
[4:46:41] permit would look like from
[4:46:42] the city's perspective.
[4:46:44] Questions about the city's
[4:46:45] authority to find businesses
[4:46:46] located outside city boundaries
[4:46:46] and whether additional
[4:46:50] resources would be needed to
[4:46:51] administer and enforce
[4:46:51] the program.
[4:46:52] We recommend that council
[4:46:55] inquire further with
[4:46:56] departments including the city
[4:46:57] Attorney's office, city
[4:47:01] treasurers, dsd and police
[4:47:02] the police department regarding
[4:47:02] the practical challenges of
[4:47:03] implementing and enforcing
[4:47:06] these provisions and whether
[4:47:06] they are there are any
[4:47:07] outstanding issues.
[4:47:07] This concludes my comments and
[4:47:13] are available for any
[4:47:13] questions.
[4:47:14] Then comes Council PRESIDENT.
[4:47:15] All right, Thank you for your
[4:47:15] always appreciate the input at
[4:47:16] the office.
[4:47:17] With that Deputy clerk please
[4:47:18] proceed with public comment.
[4:47:22] >> This item received five
[4:47:23] comments in Opposition via our
[4:47:23] economic forum which has been
[4:47:24] distributed to the Council.
[4:47:28] We'll begin with in-person
[4:47:28] comment.
[4:47:29] DeAndre Brooks please come
[4:47:29] forward.
[4:47:33] You'll have one minute to speak
[4:47:34] while DeAndre walks to
[4:47:35] the microphone I would ask Matt
[4:47:35] Stransky.
[4:47:39] Mark o'Brien as our man king
[4:47:40] And Terry best to please come
[4:47:44] to the front row Council
[4:47:44] members My name is DeAndre
[4:47:50] Brooks and I'm here tonight as
[4:47:50] a concerned citizen with strong
[4:47:51] opposition to this ordinance
[4:47:55] for several reasons.
[4:47:56] In a sense it creates a
[4:47:56] monopoly on the delivery
[4:48:02] services and that's also
[4:48:02] counterproductive to
[4:48:03] the county's cannabis equity
[4:48:07] program that's been spearheaded
[4:48:07] .
[4:48:08] So for individuals who have
[4:48:09] been harmed by the war on drugs
[4:48:13] and then living out over
[4:48:13] criminalized communities an
[4:48:14] opportunity to get into
[4:48:15] the cannabis industry so we end
[4:48:19] up voting yes to things like
[4:48:19] that.
[4:48:20] It is super counterproductive
[4:48:21] to what we're trying to do as a
[4:48:24] county.
[4:48:25] And if you recall this same
[4:48:26] issue came before this city
[4:48:30] council and you guys kind of
[4:48:31] shut it down basically sort of
[4:48:32] county had to come in to give
[4:48:32] that demographic an opportunity
[4:48:36] to thrive in this industry.
[4:48:37] So again, I'm a strong
[4:48:38] opposition to this and I urge
[4:48:39] you to consider everything I
[4:48:47] just said Thank you, MR. Ski.
[4:48:47] I don't see you.
[4:48:48] Okay.
[4:48:52] We'll move on to Marco Briones
[4:48:52] .
[4:48:52] Thank you, council members.
[4:48:53] But again we stand in
[4:48:54] solidarity with the brothers
[4:48:58] and sisters of 135 you if cw
[4:48:58] and ask you to support this
[4:48:59] ordinance today at a time
[4:49:03] cannabis delivery businesses
[4:49:04] are avoiding paying the city's
[4:49:04] cannabis retail tax and harming
[4:49:05] our local permitted cannabis
[4:49:06] retailers like the ones I've
[4:49:09] known since childhood that are
[4:49:09] here today.
[4:49:10] So our local cannabis workers
[4:49:11] are really feeling these
[4:49:16] effects of the unregulated
[4:49:16] activity, seeing their hours of
[4:49:17] layoffs and wages reduced
[4:49:20] workers and taxpayers are
[4:49:20] better.
[4:49:21] >> We support this and we ask
[4:49:21] you to do the same.
[4:49:27] Thank you.
[4:49:27] Thank you.
[4:49:28] Our next speaker is Armand
[4:49:28] King.
[4:49:28] All right.
[4:49:32] Do you have several speakers
[4:49:33] reading time to you?
[4:49:34] When I call your name please
[4:49:34] raise your hand to confirm
[4:49:35] you're here.
[4:49:38] Justin Lewis going on.
[4:49:39] Okay.
[4:49:39] Anthony Hawkins.
[4:49:46] Okay, Louis The waste business
[4:49:46] gone.
[4:49:46] Okay.
[4:49:49] And tis one Let us Okay.
[4:49:50] >> So that you'll have three
[4:49:50] minutes.
[4:49:50] Okay.
[4:49:54] Sounds good.
[4:49:55] Thank you.
[4:49:56] So what was pointed out was
[4:49:56] Alameda, right?
[4:49:57] Alameda problem There are there
[4:50:01] is a problem with dispensary
[4:50:01] deliveries happening from
[4:50:02] outside of San Diego County.
[4:50:07] Very much so that should be
[4:50:07] regulated.
[4:50:08] What's not mentioned is our
[4:50:08] neighbors La mesa, National
[4:50:09] City, Chula Vista.
[4:50:13] Let me grow now They cannot
[4:50:13] deliver across the street
[4:50:14] without going through this and
[4:50:15] I'm not here to fight for them.
[4:50:19] I doubt has been reach out to
[4:50:20] these cities to let them know
[4:50:20] that this is about to happen.
[4:50:21] There has not been adequate
[4:50:25] reach out to communities We
[4:50:25] there hasn't been a time limit
[4:50:26] right now The problem is and
[4:50:30] what I'm here representing
[4:50:31] those social equity applicants
[4:50:31] I'm the program manager for
[4:50:32] the County of San Diego Social
[4:50:36] Equity Program.
[4:50:37] The majority of our
[4:50:37] participants are San Diego City
[4:50:42] residents from your district,
[4:50:43] your district or district in
[4:50:44] your district the majority of
[4:50:44] them.
[4:50:45] Why are they in a county
[4:50:45] program?
[4:50:49] Because we all know I thought
[4:50:50] we know we had it here and
[4:50:50] the same entities that are
[4:50:55] coming bringing that brought
[4:50:56] this law because it didn't come
[4:50:56] from your office, it came from
[4:50:57] the same people, the same evil
[4:51:00] people that stripped us from
[4:51:01] having a social equity program
[4:51:07] here are now back in this.
[4:51:08] So what's behind the scenes
[4:51:08] That private right to action
[4:51:09] private right to action is
[4:51:12] saying there now you all by
[4:51:13] voting yes or giving them a
[4:51:14] loaded gun to now attack
[4:51:18] the very people that should be
[4:51:19] in the city program right now
[4:51:20] These people live in your city.
[4:51:21] They live in Linda Vista.
[4:51:25] They live in North Park.
[4:51:25] They live in southeast San
[4:51:25] Diego.
[4:51:26] They live here.
[4:51:27] And even if now they have to
[4:51:30] locate because to have a
[4:51:31] delivery service you have to
[4:51:32] have a building somewhere to
[4:51:32] deliver.
[4:51:32] Forget outside.
[4:51:36] Forget Oakland, forget L.A. San
[4:51:37] Diego residents that you're
[4:51:37] attacking here are people so
[4:51:42] they have to have a break not a
[4:51:43] brick and mortar but a building
[4:51:44] where they store their their
[4:51:48] stories that they live in San
[4:51:48] Diego.
[4:51:49] They pay rent in Central City.
[4:51:49] They shop in San Diego City.
[4:51:50] Where's the revenue coming back
[4:51:54] to here?
[4:51:55] So my only ask is is there a
[4:51:55] way for us if we want to
[4:51:56] register them because they're
[4:52:00] going to be legal operators,
[4:52:01] Can we set up a process to
[4:52:01] where the city of San Diego
[4:52:07] knows who they are but to add
[4:52:07] an extra barrier to people who
[4:52:08] have been buried and we stand
[4:52:12] here marching on the ashes of a
[4:52:13] program that we should have had
[4:52:14] right Because certain people
[4:52:18] are afraid to feel the wrath of
[4:52:19] high paid lobbyists that are
[4:52:24] pushing this forward.
[4:52:25] >> I have represented
[4:52:25] the people from your city.
[4:52:26] Clean this up.
[4:52:30] Yes, we need to regulate
[4:52:30] outside people.
[4:52:31] Yes, we do.
[4:52:31] But this ain't it.
[4:52:32] Let's do this right Because
[4:52:33] once you sign this once you say
[4:52:37] yes and this is put into place
[4:52:38] you're giving You heard of a
[4:52:38] Trojan horse, right?
[4:52:39] It looks nice and shiny.
[4:52:43] The way to deliver to your is
[4:52:43] we're keeping out all these
[4:52:44] outside folks But meanwhile
[4:52:45] inside that Trojan horse is an
[4:52:48] army ready to attack.
[4:52:49] They can't wait to see all
[4:52:50] these people out of business.
[4:52:50] They couldn't stop the county
[4:52:51] the same way they stopped
[4:52:54] the city They couldn't And
[4:52:55] we're about to have unlimited
[4:52:55] delivery services.
[4:53:01] Thank you for your time.
[4:53:01] Thank you.
[4:53:02] Next up Terry Bass.
[4:53:02] Well, Terry walks to
[4:53:03] the microphone.
[4:53:04] I would like to ask Daniela
[4:53:06] Nelson, Victoria Bush, James
[4:53:07] Case, Nate Ferryman and
[4:53:08] allegedly Otto to please come
[4:53:12] to the front row please Again,
[4:53:13] Terry.
[4:53:13] Thank you.
[4:53:16] I'm Terry Best, a voter in
[4:53:16] District three.
[4:53:17] This appears to be an
[4:53:17] unnecessary law aimed at
[4:53:22] the Social at the county social
[4:53:22] equity program.
[4:53:23] My suggestion would be to
[4:53:28] please remove the private right
[4:53:28] of action portion from
[4:53:29] the proposal.
[4:53:34] It is just wrong and shame on
[4:53:35] you.
[4:53:35] >> Shame on you too.
[4:53:41] Please also modify the proposal
[4:53:41] to only cover out of county
[4:53:42] delivery services.
[4:53:46] Please exclude all three within
[4:53:47] San Diego County and San Diego
[4:53:52] County itself from this law.
[4:53:53] Each of our cities has a robust
[4:53:53] cannabis permitting process.
[4:53:58] It is not necessary to be
[4:53:58] hostile to other cities
[4:53:59] delivery operations.
[4:54:04] Please do this so that at
[4:54:05] the very least the one licensed
[4:54:05] type where we struggling
[4:54:09] entrepreneur could hope to get
[4:54:10] into the industry is not
[4:54:16] blocked by special interests.
[4:54:17] Thank you that those who do not
[4:54:17] want the competition
[4:54:18] the current city operators
[4:54:23] behind this proposal have
[4:54:23] enjoyed additional
[4:54:24] consideration.
[4:54:24] Thank you.
[4:54:25] No other industry enjoys.
[4:54:31] Now the city is considering
[4:54:32] whether that does conclude your
[4:54:32] time on the board.
[4:54:33] What would you do if you took
[4:54:34] special interest along with a
[4:54:34] rabbit for a profit and any
[4:54:38] other.
[4:54:38] >> Thank you.
[4:54:40] Next speaker is Don Ellen
[4:54:47] Nelson.
[4:54:48] Hello, everybody.
[4:54:48] Good evening.
[4:54:49] My name is Donald Nelson.
[4:54:50] I am a proud resident of San
[4:54:54] Diego and live out to just
[4:54:54] outside of City Heights.
[4:54:55] I am actually here in support
[4:54:59] of this measure.
[4:55:00] Having worked on the license
[4:55:01] cannabis delivery in San Diego.
[4:55:01] I have firsthand seen
[4:55:05] the impact of an illegal market
[4:55:05] Continuing to have legitimate
[4:55:06] business licenses are
[4:55:06] legitimate businesses,
[4:55:11] employees and consumers while
[4:55:11] license operators invest
[4:55:12] significant resources into
[4:55:13] complying with state and local
[4:55:17] regulations regulations.
[4:55:17] Many unlicensed operators
[4:55:18] continue to conduct business
[4:55:18] without oversight
[4:55:23] accountability and
[4:55:23] consequences.
[4:55:24] Licensed cannabis Licensed
[4:55:25] cannabis is required to test
[4:55:30] the products, verify customer
[4:55:30] rage, maintain strict inventory
[4:55:31] controls and pay taxes to
[4:55:35] support our local community.
[4:55:36] Illegal operators do not do
[4:55:36] none of those things.
[4:55:37] They undermine public safety,
[4:55:42] avoid paying taxes and create
[4:55:42] unfair competition for
[4:55:43] businesses that are trying to
[4:55:43] do things right.
[4:55:44] I myself has been a part of
[4:55:48] the cannabis industry for five
[4:55:48] years and over the time I've
[4:55:49] watched them do that does
[4:55:49] conclude your time.
[4:55:50] >> Thank you.
[4:55:53] Thank you.
[4:55:54] Next speaker is Victoria Bush.
[4:55:54] Victoria.
[4:55:55] Here.
[4:55:59] Okay.
[4:56:00] James Case Thank you Counsel My
[4:56:05] time.
[4:56:05] Thank you, Council members.
[4:56:06] My name is James Case.
[4:56:07] I'm a resident of District two
[4:56:11] and I've lived and worked in
[4:56:12] San Diego, the city of San
[4:56:12] Diego for over 30 years since
[4:56:13] SEPTEMBER of 2021.
[4:56:17] I've been a proud member of
[4:56:18] the United Food and Commercial
[4:56:19] Workers Union as a delivery
[4:56:19] driver for legal registered
[4:56:23] cannabis dispensaries San
[4:56:24] Diego.
[4:56:24] I'm not evil.
[4:56:25] I'm a 63 year old grandpa.
[4:56:25] I do my job.
[4:56:29] I love my job And that's four
[4:56:30] and a half years I've been
[4:56:30] doing this.
[4:56:34] I've delivered I've driven over
[4:56:35] 100,000 miles on the streets of
[4:56:35] San Diego delivering cannabis.
[4:56:36] And one thing I've learned to
[4:56:40] be here today is it's about
[4:56:41] the money The city needs
[4:56:41] the money.
[4:56:42] Unlicensed operators have no
[4:56:46] incentive to pay business
[4:56:46] taxes.
[4:56:47] Those business taxes not only
[4:56:52] fund the works of the city,
[4:56:53] those operators also provide
[4:56:53] good jobs like my union job
[4:56:58] where the people who have those
[4:56:58] jobs spend that money in
[4:56:59] the county in the city.
[4:57:05] So those dollars not only thank
[4:57:06] that does the county help
[4:57:07] the community?
[4:57:11] Next speaker is Nate Furman.
[4:57:12] Don't see Nate here.
[4:57:13] I will go to allegedly order
[4:57:16] next please smile.
[4:57:17] Just coming to the microphone
[4:57:22] Todd Walters grant Tom, Robert
[4:57:23] Wood, Larry Beekman and Eduardo
[4:57:27] Battista Please come to talk
[4:57:28] about a war on drugs.
[4:57:29] Did you guys ever think you'd
[4:57:29] be micromanaging drug turf
[4:57:34] competition and stuff like
[4:57:34] that?
[4:57:34] How cool is that?
[4:57:35] Right?
[4:57:35] It used to be illegal.
[4:57:36] Now it's not.
[4:57:38] I mean one day it could be
[4:57:38] again.
[4:57:39] Who knows?
[4:57:40] It's like on the edge of your
[4:57:40] seat which is so interesting
[4:57:44] because people think it's still
[4:57:44] profitable.
[4:57:49] The government has taken like
[4:57:50] $60 billion industry and it's
[4:57:51] like governance.
[4:57:51] >> We heard your daddy I mean
[4:57:55] talk about being able to make
[4:57:56] all the money and not have to
[4:57:56] pay taxes.
[4:57:57] Then you come here like listen,
[4:57:58] we need you to regulate it and
[4:58:02] I do not want these people
[4:58:02] coming into my territory.
[4:58:03] So you guys are going to need
[4:58:06] to regulate that know But this
[4:58:07] is what is so interesting New
[4:58:14] permits you know what I mean?
[4:58:14] It's like I'm sorry.
[4:58:15] I just I don't understand why
[4:58:16] people think it's cool for you
[4:58:19] to come to the government and
[4:58:20] be like what's going to take
[4:58:24] billions of dollars out of my
[4:58:25] pocket like I did?
[4:58:26] >> But good for you guys,
[4:58:26] right?
[4:58:27] And it's supposed to go to city
[4:58:31] services.
[4:58:32] >> Looks like it's working.
[4:58:32] Thank you.
[4:58:33] That does conclude your time.
[4:58:33] Our next speaker is Todd
[4:58:39] Walters.
[4:58:40] Good evening City council and
[4:58:41] city staff and thank you very
[4:58:41] much for your time.
[4:58:42] It's very valuable and I
[4:58:46] respect it.
[4:58:46] Most people aren't aware of it.
[4:58:47] The cannabis legal cannabis
[4:58:48] industry is in trouble.
[4:58:52] It's not doing well.
[4:58:53] The unpermitted cannabis
[4:58:53] delivery services are taking
[4:58:54] business away from those
[4:58:58] licensed retailers who are
[4:58:58] paying taxes.
[4:58:59] The illicit cannabis market can
[4:59:00] treat contributes to a shadow
[4:59:04] economy where wage theft,
[4:59:05] unsafe working conditions and
[4:59:06] labor exploitation are more
[4:59:06] likely to occur.
[4:59:10] Workers in legal cannabis
[4:59:11] industry should not have to
[4:59:11] compete against businesses that
[4:59:12] ignore regulations and avoid
[4:59:16] paying their fair share.
[4:59:16] Stronger licensing requirements
[4:59:17] help ensure that cannabis
[4:59:18] businesses operating in San
[4:59:21] Diego follow the same rules.
[4:59:22] Ensuring operators contribute
[4:59:23] to the cannabis business tax
[4:59:28] helps generate revenue for our
[4:59:28] city essential services which
[4:59:29] we know we need.
[4:59:33] Supporting this ordinance means
[4:59:34] protecting workers responsible
[4:59:34] business and the integrity of
[4:59:35] Senegal's regulated cannabis
[4:59:39] industry.
[4:59:39] In conclusion I just ask you to
[4:59:40] support this ordinance and
[4:59:41] support the workers.
[4:59:41] Thank you.
[4:59:42] Thank you.
[4:59:49] Our next speaker is Grant Tom.
[4:59:50] >> Good evening.
[4:59:50] I'm Grant Tom Secretary
[4:59:56] Treasurer Jacobi Look at 135 I
[4:59:56] represent about 12,000 members
[4:59:57] throughout the county
[5:00:01] everywhere including retail,
[5:00:02] cannabis, medical, kiser
[5:00:02] everything I know the out of
[5:00:06] town companies and listed
[5:00:07] operators of unpermitted
[5:00:08] cannabis businesses that are
[5:00:08] currently operating or harming
[5:00:12] or illegal local cannabis
[5:00:13] industry and operators and
[5:00:13] they're undercutting taxpayers
[5:00:18] but not paying their fair share
[5:00:19] of the cannabis retail tax just
[5:00:20] hurts the workers who are
[5:00:24] causing reduce hours and we've
[5:00:25] had tons of layoffs.
[5:00:25] It's really sad.
[5:00:26] It's important to maintain
[5:00:26] the integrity of your San
[5:00:31] Diego's regulated your cannabis
[5:00:31] industry.
[5:00:32] It's also important to protect
[5:00:37] the workers and the taxpayer.
[5:00:38] This ordinance creates enhanced
[5:00:38] enforcement to protect those
[5:00:43] workers and their families
[5:00:44] including other local high road
[5:00:44] cannabis businesses.
[5:00:48] Please support this ordinance.
[5:00:49] Thank you guys very much.
[5:00:49] Thank you.
[5:00:55] Robert Wood.
[5:00:55] While Robert walks to
[5:00:56] the microphone, I will ask for
[5:01:01] the folks as needed in time to
[5:01:01] please raise my hand when
[5:01:05] called Eduardo Camacho Eduardo
[5:01:12] Livio Marquez No.
[5:01:12] Okay.
[5:01:18] Ada Castaneda okay, So Ada is
[5:01:19] here so you'll have to answer.
[5:01:24] >> Okay?
[5:01:24] >> Doug Okay.
[5:01:30] Thank you.
[5:01:30] First of all, my name is Robert
[5:01:31] Wood.
[5:01:31] I am a citizen of San Diego
[5:01:32] County.
[5:01:35] I was born and raised in
[5:01:36] the city of San Diego.
[5:01:37] I did prison time for selling
[5:01:41] marijuana.
[5:01:41] Now I go throughout
[5:01:42] the community, try to improve
[5:01:48] it in various ways and I'm a
[5:01:48] social equity cannabis
[5:01:49] advocate.
[5:01:52] Would that be I'm one of
[5:01:53] the people he helped build
[5:01:54] the cannabis industry in
[5:01:57] the county of San Diego at one
[5:01:58] point and one of the people who
[5:01:58] went to prison behind it And
[5:01:59] now I'm out.
[5:02:03] I'm ready to do things legally.
[5:02:04] I told five different greens
[5:02:04] one the nba.
[5:02:08] I understand barriers to entry,
[5:02:09] barriers to entry be it dealt
[5:02:10] with Businesses want to keep
[5:02:14] people out of something they
[5:02:14] come up with ridiculous like
[5:02:15] this ridiculousness like this.
[5:02:16] They come up with things where
[5:02:20] they say Oh you're probably
[5:02:21] right too soon so you can just
[5:02:21] personally sue me into oblivion
[5:02:25] yourself.
[5:02:26] You don't need anybody else to
[5:02:26] do it for you.
[5:02:27] This is this is this is
[5:02:31] incredible to me.
[5:02:32] The people in the San Diego
[5:02:33] Social Equity Cannabis program
[5:02:37] are people from San Diego.
[5:02:38] We all arrested in San Diego
[5:02:39] for cannabis at some point
[5:02:43] Social equity cannabis.
[5:02:44] It's just that is social
[5:02:44] equity.
[5:02:45] Do you think that any of these
[5:02:51] businesses that got together it
[5:02:51] concocted this that one time
[5:02:56] about such work I can't see one
[5:02:57] facing one of these owners in
[5:02:57] here that came down to
[5:02:58] the social equity program and
[5:03:03] took the time to talk to us and
[5:03:03] try in equities you would think
[5:03:04] that they would be embracing
[5:03:07] this, trying to work at it and
[5:03:08] saying you got to try to get
[5:03:08] into this Cool.
[5:03:09] Let us see what we can do to
[5:03:13] help you guys If they take
[5:03:14] tooth and nail the whole time,
[5:03:20] it's time that the game stop is
[5:03:20] time that this gets torn up,
[5:03:21] that the barriers to entry stop
[5:03:25] and social equity is treated
[5:03:25] like we're just supposed to be
[5:03:26] sociable and equitable.
[5:03:29] >> Thank you.
[5:03:29] >> Thank you.
[5:03:42] Blair Beekman.
[5:03:42] All right.
[5:03:42] Thank you.
[5:03:43] Where we going?
[5:03:47] I have not known much about
[5:03:47] this item.
[5:03:48] It was a learning process for
[5:03:48] myself.
[5:03:49] I really like hearing public
[5:03:53] comment on it about the social
[5:03:54] equity lack that seems to be a
[5:03:59] part of this.
[5:04:00] We try to make up rules and
[5:04:00] laws sometimes that we feel is
[5:04:05] just gosh darn good, you know
[5:04:05] and we're doing a good thing.
[5:04:10] It has a logic to it is a good
[5:04:10] logic but that logic doesn't
[5:04:15] take into account what maybe is
[5:04:16] going on underneath.
[5:04:17] This is a group that seems to
[5:04:17] have some sort of real thing
[5:04:21] going on in wanting to nail
[5:04:27] social equity with marijuana
[5:04:28] purchases and how that process
[5:04:28] can work.
[5:04:29] I mean Oakland has always
[5:04:34] created really good examples of
[5:04:34] social equity.
[5:04:35] Perhaps you can talk to them at
[5:04:40] this time at this needs a bit
[5:04:41] of more review and work it
[5:04:41] sounds like Thank you.
[5:04:45] >> Thank you Eduardo Batista
[5:04:46] followed by Anthony Ralphs and
[5:04:50] more so Daniel.
[5:04:51] Good evening Council members My
[5:04:56] name is Eduardo Batista and I
[5:04:57] respectfully oppose this
[5:04:57] cannabis delivery proposal.
[5:04:58] I support legal cannabis
[5:05:02] businesses paying taxes
[5:05:02] following the rules and
[5:05:03] operating responsibly.
[5:05:04] But this proposal goes beyond
[5:05:07] fair regulation.
[5:05:07] It creates new barriers for
[5:05:08] licensed delivery operators and
[5:05:09] gives existing cannabis
[5:05:13] retailers the ability to use
[5:05:13] private lawsuits against
[5:05:14] competitors.
[5:05:18] So weaponizing it This is
[5:05:18] dangerous for small businesses,
[5:05:19] county operators and future
[5:05:20] social equity businesses that
[5:05:23] MAY not have the resources to
[5:05:24] fight expensive litigation.
[5:05:25] Even a threat of lawsuit can
[5:05:29] discourage competition and
[5:05:30] limit access.
[5:05:30] You can also look California
[5:05:31] Motor Transport Company where
[5:05:35] trucking Unlimited and I think
[5:05:36] that covers kind of that If
[5:05:40] the concern is tax compliance,
[5:05:41] create a simple registration
[5:05:41] and tax process.
[5:05:42] If concern is illegal operators
[5:05:45] focus enforcement on unlicensed
[5:05:46] activity but do not create a
[5:05:47] system that allows established
[5:05:51] businesses to weaponize
[5:05:52] enforcement against licensed
[5:05:52] competitors.
[5:05:53] I urge the Council to reject
[5:05:56] this proposal.
[5:05:56] >> Thank you.
[5:05:57] That does conclude your time.
[5:06:01] Anthony Ralphs Yes I had
[5:06:02] submitted want to speak in
[5:06:06] favor but after hearing
[5:06:07] the deliberation I think I'm
[5:06:08] going to change to speak in
[5:06:11] opposition.
[5:06:17] >> The reason why I am changing
[5:06:18] my position from going in favor
[5:06:19] to in opposition is because I
[5:06:22] do think that regulation has
[5:06:23] good intentions.
[5:06:27] I do want to see delivery
[5:06:28] drivers have the ability to
[5:06:28] have some type of guidelines by
[5:06:29] the city as to what they can do
[5:06:33] and what they can't do.
[5:06:34] However, I was really concerned
[5:06:34] about the amount of
[5:06:35] the penalties that would be
[5:06:38] imposed The $20,000 a day just
[5:06:39] like none of us are made out of
[5:06:40] gold and we all make mistakes
[5:06:44] and $20,000 to be out of
[5:06:48] compliance or to have made a
[5:06:49] mistake with the regulations
[5:06:53] just seems really excessive to
[5:06:54] me.
[5:06:54] And also I think that if there
[5:06:59] is a confliction a conflict
[5:06:59] between the socially equitable
[5:07:03] cannabis program and this one I
[5:07:03] think I would rather go with
[5:07:04] the socially equitable
[5:07:04] community program.
[5:07:05] Thank you.
[5:07:05] Thank you.
[5:07:07] Lori Saldana you actually cut
[5:07:13] off some of his time but let me
[5:07:14] just start out by saying what
[5:07:14] Terry Bell said.
[5:07:18] MR. Campos shame on you and
[5:07:18] your committee members.
[5:07:19] You were putting a loaded gun
[5:07:22] in the hands of people to go
[5:07:23] after folks who have been
[5:07:23] historically disadvantaged in
[5:07:24] this industry.
[5:07:27] When I served the legislature I
[5:07:28] wrote bills to do the exact
[5:07:29] opposite to try and prevent
[5:07:32] this kind of cherry picking and
[5:07:33] I'm going to stick around for a
[5:07:34] non agenda comment so I can
[5:07:38] speak a little bit more about
[5:07:38] what if other industries took
[5:07:39] this approach What if other
[5:07:42] indices were given a gun and
[5:07:43] said you can do private action
[5:07:44] and go after these opponents?
[5:07:47] Are these competitors It would
[5:07:47] be mayhem.
[5:07:51] Shame on you.
[5:07:52] Shame on you MR. Foster.
[5:07:52] You know how this community has
[5:07:57] been hurt so I just don't
[5:07:57] understand why you're picking
[5:07:58] winners and losers.
[5:07:58] I wait.
[5:07:58] I do.
[5:08:01] Who has money?
[5:08:02] Who gives money to
[5:08:02] the Democratic Party?
[5:08:03] Who gives money to the party
[5:08:04] and then passes it on to
[5:08:06] candidates?
[5:08:07] >> The people that you are
[5:08:11] favoring on this Shame on you.
[5:08:12] >> Thank you.
[5:08:12] That does conclude your time.
[5:08:16] That concludes in-person public
[5:08:16] comment.
[5:08:20] We have started the five minute
[5:08:20] timer and council chambers will
[5:08:21] now turn to the virtual queue
[5:08:23] in which there are ten
[5:08:24] participants requesting to
[5:08:24] speak.
[5:08:28] We'll begin with Terry and
[5:08:28] Skelly.
[5:08:33] Please begin.
[5:08:34] >> Good afternoon San Diego
[5:08:38] City Council Chair LaCava My
[5:08:38] name is Terrance Fili and I
[5:08:39] work with my planning group on
[5:08:42] good public health and safety
[5:08:42] policies and land use
[5:08:43] decisions.
[5:08:43] I support this policy.
[5:08:47] I appreciate the city's effort
[5:08:48] to know who is selling pot in
[5:08:52] our city and where the pot is
[5:08:52] coming from since it doesn't
[5:08:53] seem to have a physical
[5:08:56] location within the city, this
[5:08:57] is a very good thing We should
[5:08:58] be aware of actual actually
[5:09:01] being successful collecting
[5:09:01] cannabis business tax and
[5:09:06] perhaps also remember that
[5:09:06] the comment by a physician
[5:09:07] trained in emergency medicine
[5:09:10] pediatrics and family practice
[5:09:11] and I quote It's ridiculous to
[5:09:15] think that any city or county
[5:09:15] will make it will make excess
[5:09:19] funds in tax revenue from
[5:09:20] the selling of addictive
[5:09:20] products.
[5:09:21] The money being brought in does
[5:09:24] not cover the costs of
[5:09:25] addiction of addiction
[5:09:25] treatment let alone any any
[5:09:29] other harm psychosis, cannabis
[5:09:30] hyperemesis pediatric exposures
[5:09:35] and injuries while intoxicated.
[5:09:35] Thank you for hearing my
[5:09:36] concern.
[5:09:40] Thank you.
[5:09:41] Our next speakers and Albania's
[5:09:53] please begin.
[5:10:00] >> Andrew Ibanez I cannot
[5:10:00] unmute for you must press on
[5:10:01] Hear me?
[5:10:03] Yup Go ahead please.
[5:10:04] >> Thank you.
[5:10:04] Good evening.
[5:10:08] Presenter and council members.
[5:10:09] My name is Andrew Ibanez.
[5:10:10] I lived in District four for 39
[5:10:10] years and I'm a cannabis social
[5:10:12] equity applicant.
[5:10:13] I oppose the proposal.
[5:10:14] I support maintaining expanded
[5:10:17] access to cannabis delivery
[5:10:18] services in the city of San
[5:10:18] Diego.
[5:10:22] Cannabis delivery provides a
[5:10:23] safe, convenient and legal
[5:10:23] option for adults, seniors,
[5:10:27] people with disabilities,
[5:10:27] veterans and patients and
[5:10:28] residents who have difficulty
[5:10:31] traveling to a dispensary or a
[5:10:32] storefront.
[5:10:32] Delivery services allows
[5:10:36] consumers to receive product at
[5:10:37] home rather than driving to a
[5:10:37] retail location.
[5:10:41] Licensed delivery operators are
[5:10:41] regulated subject to testing
[5:10:42] and tracking requirements and
[5:10:43] contribute tax revenue to
[5:10:45] the city.
[5:10:46] Policy should encourage
[5:10:47] consumers to the to use
[5:10:47] the regulated market rather
[5:10:50] than care or create barriers
[5:10:51] that MAY unintentionally push
[5:10:55] customers toward unlicensed
[5:10:55] operators.
[5:10:56] As the city considers new
[5:10:57] regulations, I encourage you to
[5:11:01] support a framework that
[5:11:01] protects public safety while
[5:11:02] preserving reasonable access to
[5:11:06] legal cannabis delivery
[5:11:06] services.
[5:11:07] Regulation should be fair,
[5:11:07] practical and designed to
[5:11:08] promote compliance.
[5:11:10] Thank you.
[5:11:11] >> That does conclude your
[5:11:11] time.
[5:11:17] Madison please begin.
[5:11:17] Hi.
[5:11:18] Good evening.
[5:11:21] Thank you for the chance to
[5:11:22] speak.
[5:11:22] I support this ordinance
[5:11:23] because strong enforcement of
[5:11:27] cannabis regulations is
[5:11:27] essential to protecting young
[5:11:28] people in our city.
[5:11:32] We are not talking about
[5:11:32] delivery of ice cream here.
[5:11:33] When delivery of a drug like
[5:11:37] cannabis is allowed it means
[5:11:37] products are spreading
[5:11:38] throughout our community that
[5:11:39] contain extremely high levels
[5:11:42] of thc and have been linked to
[5:11:43] increased risks of psychosis
[5:11:46] cannabis use disorder, cyclic
[5:11:47] vomiting syndrome, impaired
[5:11:47] driving and other serious
[5:11:51] health concerns particularly
[5:11:51] for adolescents.
[5:11:55] That is why enforcement matters
[5:11:56] .
[5:11:56] Creating a local permit
[5:11:57] requirement for cannabis
[5:12:00] delivery businesses gives
[5:12:01] the city a tool to identify
[5:12:02] operators, monitor compliance
[5:12:06] and take action When violation
[5:12:06] occurs.
[5:12:07] Strong penalties are also
[5:12:11] important because regulations
[5:12:11] without meaningful enforcement
[5:12:12] are simply suggestions.
[5:12:16] Every gap in enforcement
[5:12:16] creates opportunities for
[5:12:17] unlawful activity and increases
[5:12:21] the risk that harmful cannabis
[5:12:21] products will reach our youth.
[5:12:22] >> Thank you.
[5:12:22] Thank you.
[5:12:25] Next is Becky Wrap.
[5:12:39] Please begin.
[5:12:40] My name is back.
[5:12:45] You up and I'm very concerned.
[5:12:45] The city is considering
[5:12:48] expanding delivery regulations
[5:12:53] before providing or proving
[5:12:54] that existing regulations have
[5:12:55] been effectively enforced.
[5:12:58] For years residents have been
[5:12:59] requesting a comprehensive
[5:12:59] audit of San Diego's marijuana
[5:13:03] program including the number of
[5:13:04] businesses operating,
[5:13:04] the amount of tax revenue being
[5:13:05] collected and whether
[5:13:08] businesses are complying with
[5:13:08] local regulations.
[5:13:09] This report repeatedly
[5:13:12] references noncompliance but
[5:13:13] does not include important
[5:13:14] enforcement data to support
[5:13:17] the need that this new permit
[5:13:18] program is needed.
[5:13:18] How many violations have been
[5:13:22] identified?
[5:13:23] How much unpaid tax has been
[5:13:24] recovered?
[5:13:24] And the delivery operators have
[5:13:27] been investigating.
[5:13:28] A report doesn't tell us that
[5:13:28] before creating new permits and
[5:13:32] expanding the city's marijuana
[5:13:32] framework.
[5:13:33] The city should first provide a
[5:13:37] full accounting of the current
[5:13:37] system.
[5:13:38] If we don't know whether
[5:13:38] existing businesses are
[5:13:41] complying with the rules or
[5:13:42] paying the taxes they owe.
[5:13:42] >> How can we justify
[5:13:43] expanding?
[5:13:43] Thank you.
[5:13:48] That is include your time.
[5:13:49] >> Please note that the five
[5:13:54] minute timer has concluded with
[5:13:54] six speakers left in the queue.
[5:13:58] No other speakers will be taken
[5:13:59] .
[5:13:59] Next up is Peggy Walker.
[5:14:03] Please begin.
[5:14:08] Oh, good evening, COUNCILMAN
[5:14:08] Campo.
[5:14:09] I represent parents and thank
[5:14:10] you and support this.
[5:14:13] Strict controls are needed
[5:14:14] because bad players on both
[5:14:18] the seller and consumer sides
[5:14:18] ignore illegal delivery
[5:14:19] requirements.
[5:14:22] Delivery services Too often
[5:14:23] cheat the city of taxes put
[5:14:24] youth in jeopardy of harmful
[5:14:28] underage use, fail to make I.D.
[5:14:28] Checks and deliver quantities
[5:14:29] not allowed by state
[5:14:32] regulations.
[5:14:33] A Bay Area delivery company was
[5:14:37] recently exposed for leaking
[5:14:37] their delivery databases
[5:14:42] containing customer names, home
[5:14:42] addresses, even medical data.
[5:14:47] Consumers should be made aware
[5:14:47] of these risks.
[5:14:48] An official list posted online
[5:14:52] of all future San Diego license
[5:14:52] delivery services would be
[5:14:57] helpful so that consumers can
[5:14:57] know that their deliveries are
[5:14:58] from permitted vendors.
[5:15:02] Thank you.
[5:15:07] >> Thank you.
[5:15:08] Next up is Peggy Walker.
[5:15:15] Please begin.
[5:15:15] >> Hi.
[5:15:16] That was me.
[5:15:16] I just spoke.
[5:15:17] Sorry.
[5:15:19] I apologize.
[5:15:21] Next up is Kathleen Leavitt.
[5:15:27] Please begin.
[5:15:27] >> Thank you.
[5:15:28] Thank you.
[5:15:31] To counsel Patrick Campo for
[5:15:32] his good intentions a proactive
[5:15:33] step that should be taken
[5:15:37] before proposing any additional
[5:15:37] programs like this would be to
[5:15:41] do an analysis of
[5:15:42] the businesses already
[5:15:42] permitted.
[5:15:43] Are they compliant?
[5:15:47] Are they paying their taxes?
[5:15:47] Many businesses already see
[5:15:48] city codes and suggestions
[5:15:52] rather than requirements.
[5:15:52] They do not see meaningful
[5:15:56] consequences to businesses
[5:15:57] found to be out of compliance.
[5:15:58] It is no surprise many
[5:16:02] marijuana businesses have gone
[5:16:02] out of business because
[5:16:03] unpermitted marijuana
[5:16:06] businesses always have and
[5:16:07] always will take business from
[5:16:08] permitted business.
[5:16:11] This permanent undermines
[5:16:12] the city's regulatory framework
[5:16:16] and disadvantages compliant
[5:16:16] businesses.
[5:16:17] That being said, there is
[5:16:21] nothing good about compliant or
[5:16:22] permitted businesses any more
[5:16:23] than unpermitted businesses.
[5:16:26] The rent seeking revenues over
[5:16:27] public safety is never going to
[5:16:31] end well for the city.
[5:16:32] >> That does conclude your
[5:16:32] time.
[5:16:33] Thank you.
[5:16:33] Next up J.D. String Please
[5:16:38] begin.
[5:16:39] >> Good afternoon, San Diego
[5:16:39] City Council.
[5:16:44] Thank you to City Council
[5:16:44] person Carpio for considering
[5:16:49] this at his NOVEMBER adr
[5:16:49] meeting.
[5:16:50] I'm sorry Some of us maybe who
[5:16:53] spoke didn't have an
[5:16:54] opportunity to hear
[5:16:54] the discussion then I think we
[5:16:55] would have a better
[5:16:58] understanding of what the goal
[5:16:58] was behind this policy.
[5:17:03] Some intent to level
[5:17:04] the playing field for those who
[5:17:08] actually have permits in
[5:17:09] the city of San Diego to
[5:17:09] deliver and those who do not
[5:17:12] and are coming in and we don't
[5:17:13] know who they are, where
[5:17:14] they're from, what
[5:17:14] the condition of the products
[5:17:18] are And it looks like and
[5:17:19] the example on the PowerPoint,
[5:17:22] the one given it's not even
[5:17:22] registered by the city, by
[5:17:27] the state, by dcc.
[5:17:28] So we need to really understand
[5:17:28] who it is just driving around
[5:17:32] our neighborhoods, dropping off
[5:17:32] pot.
[5:17:33] I must say, however, in doing a
[5:17:36] search I found the city of
[5:17:37] Oceanside tried to do the same
[5:17:41] thing and get a registry of
[5:17:42] deliveries and then when signed
[5:17:42] out.
[5:17:42] >> Thank you.
[5:17:45] That does conclude your time.
[5:17:46] Next is Cannabis Education
[5:17:46] Project.
[5:18:00] Please begin Cannabis Education
[5:18:00] Project.
[5:18:03] Please begin.
[5:18:12] I see you're unmuted.
[5:18:16] One more time Cannabis
[5:18:21] Education Project.
[5:18:25] Okay, we'll have to move on.
[5:18:26] Next up Shelby Huffaker.
[5:18:33] Please begin that evening.
[5:18:34] My name is Shelby and I'm a
[5:18:38] board member of the San Diego
[5:18:39] chapter of Americans for Safe
[5:18:39] Access, a national nonprofit
[5:18:42] advancing Safe Access to
[5:18:43] cannabis for therapeutic use
[5:18:43] and research.
[5:18:44] I urge you to reject this
[5:18:48] proposed cannabis delivery
[5:18:48] permit and enforcement
[5:18:49] enforcement ordinance.
[5:18:52] It is redundant with state law
[5:18:53] and appearance designed to let
[5:18:54] San Diego's existing cannabis
[5:18:57] monopoly block competition from
[5:18:58] the county social equity
[5:18:59] program which is just weeks
[5:18:59] away from an anticipated vote
[5:19:02] on the code's needed to
[5:19:03] implement it.
[5:19:06] If you move forward please make
[5:19:06] two changes.
[5:19:07] First, eliminate the private
[5:19:08] right of action which would let
[5:19:10] anyone including monopoly
[5:19:11] members and opponent opponents
[5:19:15] of cannabis legalization sue
[5:19:16] compliant operators and clog
[5:19:17] our courts.
[5:19:20] Second, please exempt operators
[5:19:21] already licensed by the county
[5:19:22] from this duplicative permitted
[5:19:22] system.
[5:19:25] Please reject this ordinance or
[5:19:26] adopt these fixes.
[5:19:26] >> Thank you.
[5:19:28] Thank you.
[5:19:28] >> Kelly Hayes.
[5:19:33] Please begin.
[5:19:34] >> Hi.
[5:19:34] Good evening, Council members.
[5:19:35] My name is Kelly Hayes.
[5:19:38] i'm a resident of District two
[5:19:39] and an attorney who specializes
[5:19:42] in working with the cannabis
[5:19:43] businesses.
[5:19:43] I've been working with this
[5:19:44] industry since 2014.
[5:19:48] And I've seen a lot of issues
[5:19:48] with this ordinance and I
[5:19:52] strongly oppose it.
[5:19:52] First requiring delivery
[5:19:53] businesses to obtain a separate
[5:19:57] San Diego permit is unworkable
[5:19:58] in the city.
[5:19:58] The city is going to have no
[5:20:02] way to police and enforce this
[5:20:02] requirement.
[5:20:03] State regulations require
[5:20:07] delivery vehicles to be in
[5:20:08] unmarked and indistinguishable
[5:20:11] from any other type of vehicle
[5:20:11] .
[5:20:12] The effect that this is going
[5:20:13] to have on staff is going to be
[5:20:16] burdensome and it's going to
[5:20:17] accomplish absolutely nothing
[5:20:17] nothing that you're trying to
[5:20:18] achieve.
[5:20:21] Additionally, the private right
[5:20:22] to action is duplicative.
[5:20:23] There's already state law that
[5:20:26] allows for this type of private
[5:20:26] action And what you're
[5:20:30] proposing is going to create
[5:20:31] meritless cases and clog our
[5:20:36] court system.
[5:20:36] >> So I strongly ask you to
[5:20:37] oppose this.
[5:20:37] Thank you.
[5:20:40] That does conclude your time.
[5:20:41] And that concludes the public
[5:20:42] testimony on item 2o2.
[5:20:45] All right.
[5:20:45] Thank you, Deputy Clerk.
[5:20:46] Thank you.
[5:20:46] Everybody that spoke or called
[5:20:50] in will now turn it over to
[5:20:50] council members for questions,
[5:20:51] comments and entertain a motion
[5:20:55] and we'll start with
[5:20:55] the proponent.
[5:20:56] Council Member Campo Thank you
[5:20:57] Council PRESIDENT And thank you
[5:20:59] to my staff for the good work
[5:20:59] on this.
[5:21:00] Thank you to all the members of
[5:21:01] the public for their
[5:21:01] participation today.
[5:21:04] I want to specifically thank
[5:21:05] the cw workers who came to
[5:21:05] speak directly.
[5:21:06] Members of the Public Labor
[5:21:08] Council and members of sounds
[5:21:09] like almost every district for
[5:21:13] explaining why today's action
[5:21:13] is so important.
[5:21:14] It's abundantly clear that
[5:21:18] illicit cannabis delivery is a
[5:21:19] problem in the city.
[5:21:19] It's a problem that we haven't
[5:21:23] had a solution to address
[5:21:24] because it's difficult to
[5:21:24] address.
[5:21:25] It's layered with state and
[5:21:28] local laws and enforcement
[5:21:29] Actions span from the state to
[5:21:29] city attorneys, local law
[5:21:33] enforcement, the city
[5:21:34] administrators and city
[5:21:34] administrators involved.
[5:21:35] Land use enforcement in some
[5:21:38] cases.
[5:21:38] So from a regulatory
[5:21:39] perspective it is very
[5:21:42] difficult to get this right.
[5:21:43] But we're here.
[5:21:43] The city regulates cannabis
[5:21:47] delivery from businesses inside
[5:21:48] city limits.
[5:21:48] And if they don't follow
[5:21:49] the rules, they don't get to
[5:21:49] operate in the city.
[5:21:52] They have a physical building
[5:21:53] and a permit to operate it.
[5:21:54] But what about the businesses
[5:21:57] that come in, drive in, deliver
[5:21:58] legally by state or local laws
[5:22:01] and then leave?
[5:22:02] To test if this is actually
[5:22:06] happening you could right now
[5:22:06] order cannabis to be delivered
[5:22:07] to city hall particularly out
[5:22:11] of city company is advertising
[5:22:12] on Weed Maps an online platform
[5:22:16] for marketing cannabis products
[5:22:17] and has their location listed
[5:22:21] as the Gaslamp District right
[5:22:22] here in downtown Shouldn't
[5:22:22] surprise anybody.
[5:22:26] We don't have any licensed
[5:22:26] cannabis outlets in
[5:22:27] the Gaslamp.
[5:22:30] This business is listed on
[5:22:31] the state's Department of
[5:22:31] Cannabis Control website as a
[5:22:35] state licensed delivery
[5:22:36] business but their licensed
[5:22:40] operations is in Kern County.
[5:22:40] That means in order to abide by
[5:22:41] state law they would have to
[5:22:44] wait until an order is made
[5:22:45] before they dispatch to deliver
[5:22:45] with a driver that delivery
[5:22:50] driver has to be a direct
[5:22:51] employee of that company.
[5:22:51] They have to provide specific
[5:22:54] details on every receipt with
[5:22:55] information about that company
[5:22:56] and they have to pay all
[5:22:59] applicable taxes.
[5:23:00] And they're definitely not
[5:23:00] allowed to deliver to
[5:23:03] government property.
[5:23:04] You can place an order and have
[5:23:05] a delivery within two hours
[5:23:05] from this company.
[5:23:09] No local taxes are applied on
[5:23:09] their receipt.
[5:23:10] No state license number is
[5:23:13] listed on that receipt.
[5:23:14] That means that someone is
[5:23:18] either driving very fast from
[5:23:18] Kern County, the nearest city
[5:23:22] of which is 191 miles away or
[5:23:23] they're storing cannabis
[5:23:23] products illegally within our
[5:23:27] city limits and that business
[5:23:28] is clearly not abiding by
[5:23:29] worker and consumer safety
[5:23:29] protections.
[5:23:33] So I understand we have a
[5:23:33] current process for cannabis
[5:23:34] delivery services entering city
[5:23:34] limits.
[5:23:37] They are required to register
[5:23:38] for a business tax certificate
[5:23:38] and pay applicable taxes but
[5:23:39] they're not required to provide
[5:23:42] any proof of their state
[5:23:42] license.
[5:23:43] So if we know that a business
[5:23:43] is violating their state
[5:23:47] license requirements, we can't
[5:23:48] really do anything about it
[5:23:48] yet.
[5:23:49] And in this scenario let's say
[5:23:51] we suspect that a facility is
[5:23:52] within city limits is being
[5:23:53] used to store cannabis products
[5:23:56] for delivery.
[5:23:56] It's not allowed under current
[5:23:57] code.
[5:23:57] We can provide notice and send
[5:24:01] in code enforcement cpd to
[5:24:02] investigate.
[5:24:02] Apply penalties If they have
[5:24:03] information on that business we
[5:24:06] could file a complaint with
[5:24:06] Department of Cannabis Control
[5:24:10] to apply penalties or revoke a
[5:24:10] permit if the business has one.
[5:24:11] But we know that revoking a
[5:24:12] permit or having an expired
[5:24:14] permit does not stop that
[5:24:15] business entity from continuing
[5:24:16] to advertise and deliver
[5:24:19] cannabis in the city of San
[5:24:19] Diego.
[5:24:20] So it's safe to say our current
[5:24:21] resources are at capacity at
[5:24:24] addressing this kind of illegal
[5:24:24] commercial activity.
[5:24:25] And when we've exhausted our
[5:24:28] administrative options,
[5:24:29] the city attorney's office can
[5:24:30] still file a civil action in
[5:24:30] court against the business.
[5:24:33] But it would be a matter of
[5:24:34] prioritizing this this issue
[5:24:35] over others because our staff
[5:24:38] capacity is limited.
[5:24:39] And from what I've heard from
[5:24:40] the workers and businesses and
[5:24:43] members of the public is that
[5:24:43] this activity goes on and on
[5:24:44] and on.
[5:24:44] >> While the government
[5:24:47] agencies tasked with regulation
[5:24:48] they're unable to enforce
[5:24:48] the law.
[5:24:52] My experience as a litigator
[5:24:53] and prosecutor the private
[5:24:53] right of action is a very
[5:24:54] commonly used enforcement
[5:24:56] mechanism.
[5:24:57] It's primarily used in other
[5:24:58] areas of law labor law for
[5:24:58] example.
[5:25:02] But the concept is very simple.
[5:25:02] When a party is harmed by
[5:25:03] the violation of a law they can
[5:25:07] ask the court to enforce it.
[5:25:08] This is not a unique remedy.
[5:25:11] It's not a unique tool.
[5:25:12] It's not just any member of
[5:25:13] the public, by the way, a party
[5:25:16] that's harmed by the violation
[5:25:17] and in this case a legal
[5:25:17] business.
[5:25:18] Unions representing those
[5:25:21] workers and those businesses
[5:25:21] right here in San Diego.
[5:25:22] So a court can evaluate that
[5:25:26] evidence, determine penalties
[5:25:26] if they determine the law was
[5:25:27] not followed.
[5:25:30] So what does this accomplish
[5:25:31] and what does success look like
[5:25:32] if we implement this?
[5:25:35] First we incentivize legal
[5:25:36] commercial activity by raising
[5:25:40] the cost of noncompliance.
[5:25:41] Registering for a business
[5:25:42] permit means filling out a form
[5:25:46] or you run The risk of high
[5:25:46] penalties is not a high bar
[5:25:50] that we are setting here
[5:25:51] penalties that can actually
[5:25:52] outweigh the financial benefit
[5:25:55] to skip On hiring employees and
[5:25:56] obtaining and renewing required
[5:25:56] permits.
[5:25:57] That's what we're looking at.
[5:26:00] With this we intend to be clear
[5:26:01] that any cannabis business
[5:26:01] operating within our
[5:26:02] jurisdiction must make
[5:26:05] themselves known.
[5:26:06] They must follow the laws.
[5:26:11] As I pointed out earlier, a
[5:26:11] receipt from a cannabis company
[5:26:12] and current registered in Kern
[5:26:13] County and delivering in
[5:26:15] Gaslamp advertising Gaslamp as
[5:26:15] violating multiple laws.
[5:26:19] And if the business continues
[5:26:20] to ignore local and state laws
[5:26:21] they can then be held
[5:26:21] accountable.
[5:26:24] But I think we ought not reward
[5:26:25] multimillion dollar companies
[5:26:28] that decide it's more
[5:26:29] profitable to ignore the law
[5:26:30] which means ignoring worker
[5:26:33] protections.
[5:26:34] I think we should protect
[5:26:38] workers.
[5:26:39] These companies are ignoring
[5:26:39] community protections where
[5:26:40] around where cannabis can be
[5:26:40] sold.
[5:26:43] I think we should maintain
[5:26:43] the system that we've put up in
[5:26:44] San Diego that allow outside
[5:26:50] entities to bring it down.
[5:26:51] >> The public who voted to
[5:26:51] allow commercial cannabis under
[5:26:55] the expectation that tax
[5:26:56] revenue would return back to
[5:26:56] them.
[5:26:57] That's what they wanted.
[5:27:00] Right now it's not working.
[5:27:01] So this proposal helps us
[5:27:05] collect that as well.
[5:27:06] So with that I understand that
[5:27:06] to make this mechanism
[5:27:09] successful we also need to
[5:27:10] properly implement a permit or
[5:27:11] a business registration
[5:27:14] whichever way you want to
[5:27:14] describe it.
[5:27:15] We need to bring a fee study in
[5:27:16] order to determine the cost
[5:27:19] recoverable amount for
[5:27:20] administering the permit.
[5:27:21] And if we're asking businesses
[5:27:24] to submit a copy of their state
[5:27:25] license or business certificate
[5:27:26] and information on their owners
[5:27:29] employees I would imagine that
[5:27:30] would align with the amount for
[5:27:31] the business tax certificate
[5:27:33] which is around $34 right now
[5:27:33] for small businesses or $125
[5:27:34] for larger businesses.
[5:27:38] I see Good is here from
[5:27:39] the mayor's office.
[5:27:42] I need the mayor's commitment
[5:27:43] via you that we will that you
[5:27:47] will work to bring back bring
[5:27:48] forward the appropriate fee
[5:27:48] study to determine the exact
[5:27:49] amount of what this business
[5:27:52] permit will cost.
[5:27:52] Yes, Councilmember, thank you
[5:27:53] for that.
[5:27:53] You do have our commitment to
[5:27:57] bring that forward post second
[5:27:58] reading at this House is today.
[5:27:59] City Treasurer's office will
[5:28:01] initiate the process to conduct
[5:28:02] the fee study and then bring
[5:28:03] that forward for council
[5:28:05] consideration later this fall.
[5:28:06] >> Okay, very good.
[5:28:07] Also with along those same
[5:28:11] lines working with staff to
[5:28:11] ensure that neighboring
[5:28:12] jurisdictions and
[5:28:12] the Department of Cannabis
[5:28:16] Control are properly notified
[5:28:16] of those changes to our
[5:28:17] cannabis regulations and
[5:28:20] understand how to register
[5:28:21] through the mechanism that will
[5:28:22] be created by our departments.
[5:28:23] Yes and I think that be an all
[5:28:25] hands effort for parties that
[5:28:26] touch this including dsd, cpd,
[5:28:27] our government affairs team.
[5:28:30] So you have our full support
[5:28:30] there as well.
[5:28:31] Okay.
[5:28:31] With that council PRESIDENT,
[5:28:34] I'm happy to move approval of
[5:28:35] staff's recommendation on this.
[5:28:35] Thank you.
[5:28:36] All right.
[5:28:37] So we have a motion by Council
[5:28:37] member Campo to move the staff
[5:28:40] recommendation and we'll go
[5:28:40] next to council member Von
[5:28:41] Wolpert.
[5:28:41] >> Thank you.
[5:28:44] And thank you very much to
[5:28:44] staff for bringing this forward
[5:28:45] today and thank you for
[5:28:46] the hard work you've done it
[5:28:49] and thank you to the public for
[5:28:49] commenting and thank you to our
[5:28:50] hard working folks that you
[5:28:50] have.
[5:28:54] C.W. Who have negotiated some
[5:28:54] of the very first labor
[5:28:55] contracts in the cannabis
[5:28:58] industry.
[5:28:59] I mean things like a paid day
[5:29:03] off to go to the doctor and
[5:29:04] fair wages And if you're
[5:29:04] injured at the job that your
[5:29:05] employer actually has to pay
[5:29:08] worker's comp these are
[5:29:09] the things that these workers
[5:29:10] are asking for.
[5:29:12] And I think that that should be
[5:29:13] the bare minimum And it really
[5:29:17] is very hard for cannabis
[5:29:18] businesses who are lawfully
[5:29:18] operating including the new
[5:29:22] cannabis businesses who will be
[5:29:23] permitted under the county's
[5:29:23] equity program.
[5:29:27] You too can be undercut by
[5:29:28] the folks who operate down
[5:29:29] the gas gaslamp from Kern
[5:29:29] County by folks operating
[5:29:32] outside of our state.
[5:29:33] Even once you're licensed by
[5:29:37] the cannabis equity program in
[5:29:38] the county you too can use this
[5:29:38] law If you locate in San Diego
[5:29:42] and with the private right of
[5:29:42] action it grants attorney's
[5:29:46] fees and costs to
[5:29:46] the prevailing party So you
[5:29:47] don't need to hire an attorney.
[5:29:48] You can get one to do it On
[5:29:51] contingency.
[5:29:52] It will be available to any
[5:29:52] licensed business provider here
[5:29:53] and you all can take on these
[5:29:56] guys here or girls whoever who
[5:29:57] are clearly coming from outside
[5:29:59] the city and the county to come
[5:30:04] undercut our local businesses.
[5:30:05] That said, anyone who delivers
[5:30:09] a product for sale in the city
[5:30:09] of San Diego needs to be paying
[5:30:13] sales tax and in this case
[5:30:14] cannabis tax in the city.
[5:30:15] You know we have folks who
[5:30:18] deliver for Amazon or Target or
[5:30:19] Walmart And if the point of
[5:30:20] sale is here in the city of San
[5:30:20] Diego, they have to pay their
[5:30:21] taxes here even if their
[5:30:23] business is located outside of
[5:30:24] it.
[5:30:25] This is a basic tax revenue
[5:30:28] requirement.
[5:30:29] It's a licensure requirement
[5:30:30] and we require all businesses
[5:30:30] to do this.
[5:30:32] So I will second the motion.
[5:30:32] >> Thank you.
[5:30:33] All right.
[5:30:33] Thank you.
[5:30:37] Council member Von Wilpert.
[5:30:38] So we have a motion by
[5:30:38] Councilmember Campos, second by
[5:30:41] Council member Von Wolpert to
[5:30:41] move the staff recommendation
[5:30:42] and we'll go next to Council
[5:30:45] member Foster and thank you
[5:30:51] Council PRESIDENT And I guess I
[5:30:56] just need to reiterate and just
[5:31:03] state for the record that I
[5:31:04] think the discourse that you
[5:31:08] are hearing stems from one
[5:31:09] problem and that is we move
[5:31:13] forward with cannabis without
[5:31:17] being inclusive on its onset
[5:31:18] And I think that was the worst
[5:31:23] thing that we could have done.
[5:31:24] I appreciate the $20 million in
[5:31:28] revenue or roughly thereof that
[5:31:28] we have been receiving.
[5:31:32] I appreciate the good jobs as
[5:31:33] our partners have been working
[5:31:40] to make sure that we have good
[5:31:41] employee benefits and and
[5:31:46] workers rights But we did a
[5:31:46] disservice.
[5:31:50] We excluded a community that
[5:31:59] has and still to this day is
[5:32:02] continuing to have challenges
[5:32:12] as we look at um how folks can
[5:32:13] have what we call a life in
[5:32:18] this United States of America
[5:32:22] and this is something that we
[5:32:26] have to stop.
[5:32:27] It sounds like just from
[5:32:31] the line of I guess from my
[5:32:31] colleague MR. Campo
[5:32:32] Councilmember Campo that there
[5:32:36] is work that needs to come back
[5:32:36] as we talk about establishing
[5:32:37] permit fees.
[5:32:41] It sounds like it should not
[5:32:41] exceed $125.
[5:32:46] Is that what I'm understand on
[5:32:47] the onset of this conversation?
[5:32:47] That's correct.
[5:32:49] Okay.
[5:32:55] Um and I guess if you can help
[5:32:59] me to understand what does this
[5:32:59] mean as I hear the public
[5:33:00] comment, what does this mean
[5:33:04] for folks that are part of this
[5:33:08] county's program?
[5:33:08] Is this excluding those
[5:33:09] individuals from being able to
[5:33:13] participate in the cannabis
[5:33:14] industry that would like to do
[5:33:18] delivery?
[5:33:19] Yeah.
[5:33:19] Thank you for the question.
[5:33:20] Um, as the ordinance is written
[5:33:23] now the county social equity
[5:33:24] operators or any operator
[5:33:28] that's delivering from outside
[5:33:29] the city would be required to
[5:33:30] fill out the permit form which
[5:33:33] would be an online
[5:33:33] registration.
[5:33:34] And I think the thing that
[5:33:38] we're hearing and discussion is
[5:33:38] the fee amount and does that
[5:33:39] fee represent a barrier?
[5:33:43] And so like you said,
[5:33:44] the second part of this is to
[5:33:44] bring that fee study forward
[5:33:48] and to determine the cost of
[5:33:49] service and also explore
[5:33:53] options for whether that be
[5:33:58] waivers, discounted rates and
[5:33:59] explore the possibilities
[5:33:59] there.
[5:34:03] But we can't determine that
[5:34:03] feasibility without
[5:34:04] understanding the cost to begin
[5:34:04] with.
[5:34:09] So we benchmark it against
[5:34:09] the current business tax
[5:34:14] certificate because it's a
[5:34:15] similar mechanism of
[5:34:15] registering providing
[5:34:16] the information online.
[5:34:19] It's not a land use permit
[5:34:19] where it's going to be
[5:34:19] intensive.
[5:34:20] So we're thinking ballpark
[5:34:24] can't be more than 50 to $100
[5:34:25] but we have to be sure before
[5:34:25] we present that information to
[5:34:29] any other jurisdiction And also
[5:34:30] to that we have met with
[5:34:34] the county of San Diego over
[5:34:35] this question and concern which
[5:34:39] is how will the county social
[5:34:40] equity businesses understand
[5:34:40] the requirements when they're
[5:34:45] navigating all of these hoops
[5:34:46] through the county's program?
[5:34:49] And we received their
[5:34:49] commitment that they have a
[5:34:50] list of the delivery operators
[5:34:54] those Type nine licenses or
[5:34:54] microbusinesses that will be
[5:34:55] entering into the city and they
[5:34:59] have a staff person ready to
[5:35:00] assist filling out that form.
[5:35:00] They're waiting on us to get
[5:35:04] that information to them So we
[5:35:05] will work extensively to make
[5:35:10] sure that this ordinance
[5:35:10] targets who is intended and is
[5:35:11] not hurt, who it's not intended
[5:35:15] to hurt.
[5:35:15] Okay.
[5:35:18] I appreciate that clarification
[5:35:19] .
[5:35:25] I mean I guess I will turn to
[5:35:26] the city attorney as I am as my
[5:35:30] office is working on a cannabis
[5:35:35] equity policy as we speak.
[5:35:36] And I will say that we have had
[5:35:41] conversations with other
[5:35:42] agencies and in one being Long
[5:35:46] Beach on that we've had some
[5:35:47] extensive conversations with as
[5:35:48] we talk about the cannabis
[5:35:52] industry and impacted folks and
[5:35:52] barriers.
[5:35:53] And one thing that did come
[5:35:57] about that conversation as we
[5:35:58] talk about cannabis equity is
[5:36:03] the importance of delivery and
[5:36:07] delivery services.
[5:36:09] Um it is a lot different than
[5:36:13] trying to enter the market just
[5:36:14] establishing a brick and mortar
[5:36:19] type process.
[5:36:19] Um just evening I'm going to
[5:36:24] take out what the cost of of of
[5:36:25] building a building or some of
[5:36:30] that but just the cost of what
[5:36:30] we go through from a
[5:36:35] development services position
[5:36:36] and that added cost and time
[5:36:37] frame and what it does to
[5:36:41] someone that's trying to move
[5:36:42] forward in this industry it is
[5:36:47] daunting and it is a a
[5:36:53] financial burden um the way
[5:36:53] this process is moving right
[5:36:54] now.
[5:36:58] And so with that MADAM City
[5:37:05] Attorney I will say um that um
[5:37:05] I will my office will be
[5:37:06] contacting you as I think as we
[5:37:07] continue to move forward with
[5:37:11] the cannabis equity policy that
[5:37:11] we will have to potentially at
[5:37:16] some point um relook at this
[5:37:17] policy that we are discussing
[5:37:22] today and to make some
[5:37:23] provisions based on what we are
[5:37:24] going to be bringing forward
[5:37:28] because I cannot bring in a
[5:37:28] cannabis equity policy without
[5:37:34] a delivery provision and that
[5:37:35] was directly a result of my
[5:37:39] conversations with Long Beach
[5:37:40] and what was brought to my
[5:37:40] attention.
[5:37:41] So it is a very, very important
[5:37:45] and critical component of a of
[5:37:45] an equity program.
[5:37:52] So thank you Council member
[5:37:53] We'll be happy to discuss those
[5:37:53] issues with Office.
[5:37:53] All right.
[5:37:58] Thank you With that One last
[5:37:59] question and just going to
[5:38:03] the eBay's comments on that
[5:38:04] they provided it seems like
[5:38:05] there are as we as the main
[5:38:10] purpose that we are doing this
[5:38:11] is trying to get our arms
[5:38:11] around the illicit market and
[5:38:16] especially and I'm just going
[5:38:16] to say out of town folks, right
[5:38:17] I'm going to isolate those mean
[5:38:20] those bad actors.
[5:38:21] But clearly it looks like
[5:38:22] there's concerns on just what
[5:38:27] that enforcement entails, what
[5:38:28] it looks like.
[5:38:33] Can you fill us in on just what
[5:38:34] those at least immediate
[5:38:39] challenges have been or what is
[5:38:39] police referring to?
[5:38:40] As you know, we can pass a
[5:38:41] policy but if we can't go out
[5:38:45] and enforce then what are we
[5:38:46] accomplishing?
[5:38:51] Definitely I'll I'll start and
[5:38:52] then I can pass it over to
[5:38:52] the departments to get their
[5:38:53] response.
[5:38:56] But the concerns that were
[5:38:56] mentioned on how to enforce
[5:39:02] delivery is essentially
[5:39:03] the reason why we're proposing
[5:39:04] this with the private right of
[5:39:04] action.
[5:39:05] Our current enforcement
[5:39:09] capacity is exhausted.
[5:39:09] The fda has the authority to
[5:39:10] issue notices and I'll let them
[5:39:15] finish on their department of
[5:39:15] their expertise.
[5:39:20] But their staff is limited.
[5:39:21] The information that they have
[5:39:22] is limited So as is they're
[5:39:26] unable to enforce against known
[5:39:27] delivery services especially
[5:39:28] because they don't have a
[5:39:32] physical place in San Diego.
[5:39:32] So how can dsd enforce
[5:39:33] something that's not within
[5:39:34] their limits?
[5:39:38] And so that's where the city
[5:39:39] treasurer's office comes in and
[5:39:40] they're responsible for
[5:39:40] administering the business tax
[5:39:45] certificate and they would be
[5:39:45] the entity that's responsible
[5:39:46] for enforcing this so to speak
[5:39:50] from an administrative
[5:39:51] perspective they would be
[5:39:52] administering the permit.
[5:39:52] But the question then becomes
[5:39:56] what happens if a business
[5:39:56] decides not to register?
[5:39:57] They only have five registrants
[5:39:58] so far and like you heard in
[5:40:02] comment Oceanside set up a
[5:40:03] registry No one registered
[5:40:04] because they don't have an
[5:40:07] incentive to and so that's
[5:40:08] where the private right of
[5:40:14] action comes into play where
[5:40:14] the current enforcement
[5:40:15] mechanisms aren't working.
[5:40:16] So there wouldn't be
[5:40:16] necessarily additional
[5:40:20] enforcement capacity to address
[5:40:21] that even though it repeat some
[5:40:27] of the available improvement
[5:40:28] mechanisms.
[5:40:28] I would say So with that I can
[5:40:32] turn it over to coda if you
[5:40:33] have anything else to add.
[5:40:33] >> Yeah.
[5:40:34] Thanks so much.
[5:40:34] I think that captures it pretty
[5:40:35] accurately.
[5:40:38] It's really to supplement and
[5:40:39] support the current enforcement
[5:40:39] landscape they're adding in
[5:40:43] the Treasurer piece of it and
[5:40:44] having essentially a checkpoint
[5:40:45] for what we know is out there
[5:40:49] not out there That's helpful to
[5:40:50] support these efforts
[5:40:50] separately from that.
[5:40:51] But really the private right of
[5:40:52] action is is that in the big
[5:40:55] shiny thing through this new
[5:40:56] proposed policy But staff is
[5:40:57] ready to enforce this to
[5:41:03] implement this I do have at
[5:41:03] least open to as well as
[5:41:04] Ricardo Ramos from city
[5:41:09] treasurer all mine if have
[5:41:09] really any specific questions
[5:41:10] there But we are all on
[5:41:10] the same page and ready to
[5:41:13] enforce.
[5:41:13] Okay.
[5:41:14] Is there any I guess anything
[5:41:19] covered in the current statutes
[5:41:20] in regards to reporting or how
[5:41:21] are we going to monitor Is
[5:41:21] there any monitoring associated
[5:41:22] with this?
[5:41:26] How are we going to determine
[5:41:26] how this is progressing?
[5:41:27] There's no monitoring
[5:41:27] requirements that are explicit
[5:41:32] in the ordinance but because of
[5:41:33] that it's flexible to determine
[5:41:38] that administratively our goal
[5:41:39] would be to have something like
[5:41:39] the Department of Cannabis
[5:41:44] Control They have a registry
[5:41:44] that's available for public
[5:41:45] viewing so you're not
[5:41:46] contacting that staff person
[5:41:49] and asking for that
[5:41:50] information.
[5:41:50] It's a readily available list
[5:41:51] and active registry.
[5:41:56] So in terms of records
[5:41:56] maintenance and managing of
[5:41:57] that we would envision an
[5:42:02] annual updated process.
[5:42:02] But again it's up to
[5:42:03] the administration and
[5:42:04] department to determine what
[5:42:07] makes the most sense and what
[5:42:08] would be feasible on their end.
[5:42:13] Okay.
[5:42:14] All right.
[5:42:14] Thank you for that.
[5:42:15] I guess I will fall back coda
[5:42:19] and have some additional
[5:42:20] conversation so I can make sure
[5:42:21] I just understand just from a
[5:42:24] practical perspective what this
[5:42:25] enforcement process looks like.
[5:42:26] It sounds like we are going to
[5:42:26] leave it in the hands of
[5:42:31] the public to come in and try
[5:42:37] and do some things which is a
[5:42:37] little concerning based on how
[5:42:43] the commentary and the feedback
[5:42:43] you get within the industry as
[5:42:44] competitive as it is and
[5:42:49] the issues that that everyone's
[5:42:54] encountering I will support
[5:42:55] this today as we continue to
[5:42:55] move forward.
[5:43:01] But again and that's what
[5:43:02] the understanding the intent
[5:43:03] that I will be bringing forward
[5:43:06] the cannabis equity program
[5:43:07] I'll be it will have a delivery
[5:43:08] component to it And so we'll be
[5:43:13] looking to make sure that any
[5:43:14] necessary provisions to make
[5:43:14] sure we are as inclusive as we
[5:43:18] can be as we continue to move
[5:43:19] forward and further progress
[5:43:25] with the cannabis or cannabis
[5:43:25] program.
[5:43:26] And again I'm just going to
[5:43:31] close with I am still very
[5:43:31] disappointed that we move
[5:43:32] forward without the cannabis
[5:43:32] equity program.
[5:43:37] I hate that we gave almost $1
[5:43:37] million back which I think was
[5:43:42] a horrible decision and really
[5:43:43] an injustice to those folks who
[5:43:43] have been impacted.
[5:43:49] And just to turn this over to
[5:43:49] what I guess I would call
[5:43:55] corporate type folks to take
[5:43:56] over this industry I think was
[5:43:57] just a horrific and horrible
[5:44:00] move by the by the city
[5:44:01] council.
[5:44:01] And so I'll conclude there.
[5:44:10] Council PRESIDENT And me for
[5:44:11] your comments.
[5:44:11] All right.
[5:44:12] Thank you Council my boss for
[5:44:12] not seeing anybody Council
[5:44:15] member Yellow River Thank you
[5:44:16] Council PRESIDENT Thank you so
[5:44:17] much for the presentation and
[5:44:19] for your help Customer come to
[5:44:24] you for bringing us forward
[5:44:25] kind of at a high level you
[5:44:31] know groups and businesses that
[5:44:32] are taking advantage of San
[5:44:37] Diego that are operating here
[5:44:38] benefiting from the city but
[5:44:39] not paying their fair share.
[5:44:43] I always have a problem with
[5:44:44] that And so I appreciate
[5:44:45] the part of this that that aims
[5:44:49] to address that.
[5:44:50] I'm certainly sympathetic to
[5:44:56] the concerns that the high
[5:44:57] standard that you C.W., has
[5:45:02] helped establish for what work
[5:45:03] place conditions and wages look
[5:45:04] like for those folks who work
[5:45:08] in the industry that operate
[5:45:09] outside the city.
[5:45:10] There's operators who work or
[5:45:15] not not only not meeting that
[5:45:16] standard that employers
[5:45:16] generally and we certainly do
[5:45:20] want to reward that All of
[5:45:20] those concerns I am very
[5:45:21] sympathetic to I appreciate
[5:45:26] the questions and comments from
[5:45:27] Councilmember Foster.
[5:45:32] I could I'm not sure I fully
[5:45:33] understood the answer to
[5:45:33] the question raised about input
[5:45:34] raised about implementation
[5:45:41] because in terms I appreciate
[5:45:42] your your response but I will
[5:45:48] note that dsd and Treasurer
[5:45:49] raise concerns regarding
[5:45:49] implementation of Proposal co
[5:45:50] two.
[5:45:50] You said you guys are ready to
[5:45:54] enforce.
[5:45:55] What's the gap there between
[5:45:55] what the department's told
[5:46:00] the ipa and the readiness to
[5:46:00] enforce?
[5:46:01] And I think there's been an
[5:46:01] acknowledgment by the length
[5:46:05] within the language of
[5:46:06] the ordinance that there's a
[5:46:07] gap between what the city can
[5:46:11] do and what the expectation is
[5:46:12] as far as what needs to be
[5:46:12] done.
[5:46:18] I think and certainly I'm not
[5:46:19] tried to speak on your behalf I
[5:46:19] think there was a
[5:46:20] misunderstanding that MAY be
[5:46:24] played out last week during one
[5:46:24] of the public briefings that
[5:46:25] has since been resolved where
[5:46:29] dsd does know their role here
[5:46:30] within this proposed ordinance
[5:46:30] as does the city treasurer.
[5:46:31] I think maybe there was an
[5:46:32] assumption that more was going
[5:46:36] to be added to their plate in
[5:46:37] terms of something that would
[5:46:37] require additional staff time
[5:46:41] or budget which again wouldn't
[5:46:42] be maybe wasn't something that
[5:46:42] was going to be ready for
[5:46:43] consideration today that then
[5:46:48] resolved We do have a path
[5:46:49] forward here that we can do
[5:46:49] within our current capacity.
[5:46:53] We do have a game plan moving
[5:46:54] forward on returning with
[5:46:54] the fee study and so we do feel
[5:46:59] confident that our timeline and
[5:46:59] path forward is solidified and
[5:47:00] agreed upon by all parties and
[5:47:04] city departments.
[5:47:05] So if you can I ask you I mean
[5:47:10] you put this here for a reason
[5:47:10] .
[5:47:11] Are there specific concerns
[5:47:17] that you continue to have just
[5:47:17] not have the information that
[5:47:18] code is referencing here?
[5:47:24] I'm trying to reconcile what I
[5:47:24] know what's put here in good
[5:47:25] faith and what we're hearing on
[5:47:26] the dais.
[5:47:30] I think Yes.
[5:47:30] So so while we're discussing
[5:47:34] with the departments both dsd
[5:47:35] and seato just have questions
[5:47:40] on how to enforce once we have
[5:47:41] this registered or some
[5:47:42] information that they might
[5:47:47] require that it's not provided
[5:47:48] and I defer back to the city or
[5:47:48] what specific those are For
[5:47:49] example type nine licenses
[5:47:53] information that is collected
[5:47:54] in the state That's not
[5:47:54] something they're able to
[5:47:58] receive as of my understanding
[5:47:59] now But I would defer back to
[5:48:04] the cto for specifics.
[5:48:10] I don't have anyone we do
[5:48:11] believe we had a deputy
[5:48:12] director Ricardo Ramos from
[5:48:17] city treasurer only this
[5:48:17] recording of the see that's
[5:48:18] what concern was just
[5:48:22] the enforcement as referenced
[5:48:23] earlier this is basically just
[5:48:23] a registry So we're collecting
[5:48:26] the data and we can actually do
[5:48:26] that piece.
[5:48:27] But it's the question is just
[5:48:33] the enforcement.
[5:48:39] So that's what the answer if
[5:48:40] that's the question as well as
[5:48:41] what was presented today, there
[5:48:44] is no enforcement enforcement
[5:48:45] that would be performed by
[5:48:46] the city just because we have a
[5:48:50] lack of resources to The answer
[5:48:51] is a private right of action.
[5:48:51] Correct.
[5:48:51] Okay.
[5:49:06] So okay So concerns about
[5:49:07] the city's ability to enforce
[5:49:12] or I should say implement
[5:49:13] through enforcement those
[5:49:14] remain what is solved through
[5:49:18] salt Fourth through
[5:49:19] the ordinance is
[5:49:19] the expectation that that gap
[5:49:24] will be closed through private
[5:49:24] right of action.
[5:49:24] That's okay.
[5:49:29] There's like I like a consensus
[5:49:35] of had nothing going on okay I
[5:49:36] recognize that type of action
[5:49:41] are a common tool and an
[5:49:41] important tool And I just from
[5:49:42] a general public policy
[5:49:46] perspective I have concerns and
[5:49:47] don't like the idea that we've
[5:49:48] basically written off
[5:49:53] the city's ability to to
[5:49:53] perform a function that we
[5:49:54] think is worth writing the law
[5:50:02] for to the to private industry.
[5:50:03] But that's just as a general
[5:50:03] sense of public policy that
[5:50:09] doesn't seem like the direction
[5:50:09] we should head but that's a
[5:50:10] resource issue and that will
[5:50:13] continue to be a resource issue
[5:50:14] until the city is properly is
[5:50:20] properly resourced which is a
[5:50:26] little bit of a separate issue
[5:50:27] but not completely because as
[5:50:27] we like we are adding things to
[5:50:31] the city's plate while we're
[5:50:32] also removing resources at
[5:50:32] times and I will continue to be
[5:50:35] frustrated by that But that's
[5:50:35] not the decision that's in
[5:50:42] front of us.
[5:50:42] One other question and
[5:50:43] COUNCILMAN Foster was going to
[5:50:46] get to this There's four cities
[5:50:46] referenced in the ordinance
[5:50:47] L.A., Oakland, Long Beach and
[5:50:52] Ventura.
[5:50:52] Three of those four, as I
[5:50:53] understand it have equity
[5:50:58] programs and as I think either
[5:50:58] of us were saying, the delivery
[5:50:59] piece is the onramp to
[5:51:00] the equity program in Long
[5:51:07] Beach.
[5:51:08] So what are and I trust
[5:51:08] COUNCILMAN Foster to do
[5:51:09] the work here But what what are
[5:51:13] we kind of doing more broadly
[5:51:13] to include the equity piece
[5:51:17] since we're using their
[5:51:25] regulatory framework that you
[5:51:25] you'll have you don't have to
[5:51:26] That's all right if you want it
[5:51:27] by all means.
[5:51:30] But it's also a question for
[5:51:30] COUNCILMAN Foster and our
[5:51:31] office has been working on
[5:51:31] the cannabis social equity
[5:51:35] program and proposed policy for
[5:51:36] you know been working closely
[5:51:36] together on that.
[5:51:37] That was one of the first
[5:51:37] questions asked when this
[5:51:42] initial proposal came forward
[5:51:42] was how it MAY incorporate an
[5:51:43] impact Councilmember Foster's
[5:51:43] effort.
[5:51:48] And so as we get closer to
[5:51:48] the finish line with that
[5:51:49] proposed policy as this one
[5:51:50] gets legs under it and starts
[5:51:52] to be implemented, those are
[5:51:53] two conversations that
[5:51:53] absolutely have to happen
[5:51:54] concurrently to ensure that
[5:51:55] both are essentially feeding
[5:51:58] into each other.
[5:51:59] >> So okay, I appreciate that.
[5:52:04] The last thing I will say is I
[5:52:05] just will echo the comments
[5:52:10] from Catherine Foster that
[5:52:16] the further we allow those who
[5:52:16] got their foot in the door for
[5:52:22] the regulated industry to to to
[5:52:23] sprint ahead, the more
[5:52:28] difficult it is to make it
[5:52:29] equity to eventually have an
[5:52:29] equity program that will
[5:52:34] actually be meaningful and we
[5:52:40] have folks who were shut out
[5:52:41] who were targeted just as much
[5:52:46] for who they are and where they
[5:52:47] were as as to what they were
[5:52:52] actually doing.
[5:52:52] We know the disproportionality
[5:52:53] of the war on drugs and what
[5:52:57] that has meant for generational
[5:52:58] poverty, the disruption of
[5:52:58] families and long term harm
[5:53:03] that will take generations to
[5:53:09] undo And it the cities the city
[5:53:10] has made it a intentional
[5:53:15] decision to start a race and
[5:53:16] not even allow those folks to
[5:53:17] not only not have their shoes
[5:53:17] on yet they're not even at
[5:53:21] the track yet And I think that
[5:53:22] continues to be a concern And
[5:53:26] my trust in Councilmember
[5:53:27] Foster's commitment to making
[5:53:32] sure that we get that piece up
[5:53:33] and running in a meaningful way
[5:53:38] is is significant.
[5:53:38] But I understand
[5:53:39] the frustration And so again,
[5:53:44] the intent here I think is
[5:53:44] there's a lot that we are
[5:53:45] aiming to curb that I think
[5:53:49] needs to be curbed.
[5:53:49] I will never support the idea
[5:53:50] of businesses operating in
[5:53:54] the city without contributing
[5:53:54] back to the city.
[5:53:55] I'll never support the idea of
[5:53:55] businesses operating in
[5:54:00] the city and selling their
[5:54:01] workers short and I want to
[5:54:01] make sure that we do right by
[5:54:06] those who were most harmed by a
[5:54:11] war on drugs that has been
[5:54:12] proven in every way imaginable
[5:54:16] to have been extremely,
[5:54:17] extremely harmful in a very
[5:54:22] disproportionate way.
[5:54:23] So with that I say thank you
[5:54:24] again to Catherine Pompeo and
[5:54:27] his team for bringing this
[5:54:28] forward and look forward to
[5:54:28] having the questions answered
[5:54:29] that have been raised today.
[5:54:33] Thank you.
[5:54:33] >> All right.
[5:54:33] Thank you.
[5:54:34] Council member Eli Rivera.
[5:54:35] We'll go back to Councilmember
[5:54:35] Foster.
[5:54:36] Thank you.
[5:54:38] Just one last question
[5:54:43] Hopefully I guess just process
[5:54:44] wise as there is more work to
[5:54:49] do Right.
[5:54:50] We have this passes today I'm
[5:54:53] assuming that's the first read
[5:54:53] comes back for the second read.
[5:54:58] I guess my question is timeline
[5:55:03] wise and as we talk about cost
[5:55:09] of service right our fee study
[5:55:09] those types of things So what
[5:55:13] happens when we are still going
[5:55:14] through that process and
[5:55:15] understanding just how this
[5:55:15] will be operationalized?
[5:55:19] I guess I will say And what
[5:55:19] does that leave to
[5:55:20] the individuals who MAY be
[5:55:24] going through whatever they are
[5:55:24] going through?
[5:55:29] Let's say there is a county
[5:55:35] equity individual who wants to
[5:55:36] come in and sign up or do
[5:55:36] something.
[5:55:40] What does that do to their
[5:55:40] business and their ability to
[5:55:45] engage as we are trying to
[5:55:45] figure out the operational side
[5:55:46] of this and to where we are
[5:55:50] able to function and understand
[5:55:51] who you know because I'm
[5:55:52] assuming if they go to court
[5:55:55] who would be the legal not
[5:55:56] legal not legal business entity
[5:56:00] or what comes first, how does
[5:56:00] that play out in terms of
[5:56:01] the process of the ordinance
[5:56:05] and its implementation?
[5:56:06] Well, first this would be first
[5:56:09] reading second reading 30 days
[5:56:10] pass that implementation date
[5:56:14] and we're asking for commitment
[5:56:14] from the mayor's office to be
[5:56:15] able to bring that fee study in
[5:56:19] alignment with that timeline so
[5:56:20] that we have certainty before
[5:56:20] this ordinance becomes
[5:56:24] effective because you can't
[5:56:25] have an effective ordinance
[5:56:26] with this tool without
[5:56:29] the implementation and it can't
[5:56:29] work.
[5:56:35] So correct And I think it would
[5:56:35] if that did happen it would
[5:56:39] just become chaos.
[5:56:40] So what I guess how are you
[5:56:41] going to manage that?
[5:56:41] What's the plan for that?
[5:56:44] So as we go through the second
[5:56:45] reading and if that passes
[5:56:49] through council city treasurer
[5:56:50] initiates the fee study item We
[5:56:51] are up against legislative
[5:56:54] recess at that time as well
[5:56:54] too.
[5:56:55] So there's a little bit of time
[5:56:56] here after initial passage and
[5:56:59] actual implementation.
[5:56:59] I think during that portion as
[5:57:00] you do have the commitment from
[5:57:01] our office that this does not
[5:57:04] go live until that fee is
[5:57:05] obviously there.
[5:57:06] And so it's a it's a
[5:57:09] communication piece really.
[5:57:10] And so I think the second part
[5:57:11] of the request from
[5:57:12] Councilmember Campo was for our
[5:57:14] assistance in coordinating with
[5:57:15] other regional entities as
[5:57:16] Summer mentioned earlier
[5:57:20] incorporating equity pieces
[5:57:20] that the county already has in
[5:57:21] place into that fee study I
[5:57:24] think is is a good step forward
[5:57:25] And so there's quite a bit of
[5:57:25] work here after initial passage
[5:57:29] but we got to get this passed
[5:57:30] to initiate that work And so
[5:57:31] it's really going to be a
[5:57:34] communication piece from both
[5:57:35] of our offices on this council
[5:57:36] to educate folks on what to
[5:57:39] expect and then have a clear
[5:57:40] runway as the fee actually gets
[5:57:41] adopted by this council.
[5:57:44] We have a firm implementation
[5:57:44] date in mind.
[5:57:44] Okay.
[5:57:45] So what I'm hearing is if for
[5:57:49] some reason that commitment in
[5:57:53] regards to operationalizing
[5:57:58] this is not stood up in time as
[5:57:59] we go through this second read
[5:58:03] then are we going to pause or
[5:58:04] timeline that correctly so that
[5:58:07] we are not so we don't have an
[5:58:08] ordinance that has passed and
[5:58:13] made it through and then we are
[5:58:13] in trouble trying to scramble
[5:58:18] and you have this clause in
[5:58:22] here where folks can just start
[5:58:22] filing.
[5:58:26] So how are we managing that?
[5:58:27] >> You understand what I'm
[5:58:27] asking?
[5:58:28] I totally get what you're
[5:58:28] saying.
[5:58:32] So I think I think there need
[5:58:33] to be a discussion maybe with
[5:58:36] city attorney's office here on
[5:58:37] if we push out a second reading
[5:58:38] and initiate to basically take
[5:58:38] this as the direction of
[5:58:41] the council saying yes, proceed
[5:58:42] with establishing the fee and
[5:58:43] then going through that process
[5:58:46] to conduct the study and have
[5:58:47] the conversations I described
[5:58:49] earlier before returning for
[5:58:50] the second reading Similar to
[5:58:51] how we do things if it's a
[5:58:51] meeting confer approach or
[5:58:55] anything like that that way we
[5:58:55] can have a clear and clean
[5:58:56] implementation date.
[5:58:59] I think both options work here
[5:59:00] but I completely understand
[5:59:00] where your concerns are of
[5:59:04] basically creating a
[5:59:04] opportunity for predatory
[5:59:05] litigation to come through and
[5:59:05] in place.
[5:59:08] So get that.
[5:59:09] Okay.
[5:59:09] Well I think that's something
[5:59:10] that we need to make sure we
[5:59:17] have a clear understanding and
[5:59:18] don't get ahead of ourselves
[5:59:22] and create other issues And
[5:59:23] then I'm sure creating more
[5:59:27] barriers for folks who have
[5:59:28] already been impacted from
[5:59:32] the war on drugs right.
[5:59:33] So so MADAM City Attorney, I
[5:59:37] guess I will in the city
[5:59:37] attorney's office We'll add
[5:59:38] that to our conversation.
[5:59:42] Um, as we are preparing and
[5:59:43] continuing to move this item
[5:59:46] forward I just want to make
[5:59:46] sure that we are not getting
[5:59:47] ahead of ourselves and doing
[5:59:51] more of a disservice and that
[5:59:51] what we are trying to
[5:59:52] accomplish with this.
[5:59:52] Okay.
[5:59:56] Thank you.
[5:59:56] Council PRESIDENT All right.
[5:59:57] Thank you Councilmember Foster
[6:00:00] Not see anybody else and light
[6:00:02] I'll ask a few questions of my
[6:00:06] own one Thank you Councilmember
[6:00:09] Camp you and your d seven team
[6:00:10] on This is something we've
[6:00:10] talked about.
[6:00:13] We have acknowledged it and it
[6:00:14] never went anywhere even though
[6:00:15] we recognize the delivery
[6:00:18] services were happening there
[6:00:19] And as I think we've all kind
[6:00:23] of landed on the inability to
[6:00:24] enforce by city staff was
[6:00:29] probably one of the reasons
[6:00:29] that we were just kind of stuck
[6:00:30] and acknowledging there was a
[6:00:33] problem without any kind of
[6:00:34] solution And the private right
[6:00:34] of action is that missing piece
[6:00:38] that allows us to actually that
[6:00:38] will be brought forward.
[6:00:42] So thank you for working
[6:00:43] through it.
[6:00:43] So the questions that go
[6:00:47] through my mind are unlike most
[6:00:48] ordinances and implementations
[6:00:52] that follow afterwards, it's
[6:00:53] the city that's doing
[6:00:57] the enforcement.
[6:00:57] This ordinance actually has a
[6:00:58] private right of action.
[6:01:01] Is there language in today's
[6:01:02] motion that says this does not
[6:01:06] go into effect until we
[6:01:07] actually have a permit process
[6:01:11] in place That's not in
[6:01:12] the motion language but if
[6:01:16] the maker would like to we go
[6:01:17] to the first reading, we go to
[6:01:18] the second reading we have an
[6:01:21] ordinance and somebody named
[6:01:22] Lady Named says I just found
[6:01:25] somebody who doesn't have a
[6:01:26] permit and compliance.
[6:01:26] I'm going to initiate a private
[6:01:30] right of action Go to my be
[6:01:31] bound with operations side.
[6:01:35] Is it a crazy idea?
[6:01:36] I know there's some big money
[6:01:44] there that council PRESIDENT
[6:01:45] Are you are you asking if
[6:01:49] the private right of action can
[6:01:50] be a force enforced if the city
[6:01:50] hasn't City Treasurer's office
[6:01:54] hasn't created the license
[6:01:54] structure or the permit
[6:01:55] structure for an outside of
[6:01:59] the city cannabis delivery
[6:01:59] program or a business to
[6:02:04] actually get and therefore
[6:02:04] follow the law.
[6:02:05] >> I guess that's that's
[6:02:05] the question.
[6:02:10] I think that it would Okay Well
[6:02:11] first to even prove it you'd
[6:02:14] have to prove harm or you'd
[6:02:15] have to show that you're, you
[6:02:18] know, harmed economically But I
[6:02:19] guess strictly speaking it
[6:02:27] doesn't elucidate that exactly
[6:02:27] .
[6:02:28] I mean code is committed to
[6:02:31] the operation cited dft or city
[6:02:32] treasurers would enforce that.
[6:02:32] We actually had it in place
[6:02:36] certainly Well to be very to be
[6:02:36] very clear, there is an
[6:02:37] enforcement mechanism for
[6:02:37] the city that says a city
[6:02:40] manager shall promulgate rules
[6:02:41] and regulations to do that.
[6:02:44] So it's not as if we're not
[6:02:45] able to create a system for
[6:02:46] internal administrative
[6:02:49] enforcement.
[6:02:55] So I would say it's almost
[6:02:56] nonsensical to think that a
[6:02:56] private right of action could
[6:02:59] come forward if the city
[6:03:00] manager, the mayor's office
[6:03:03] through the departments hasn't
[6:03:04] created an actual license to
[6:03:05] apply for because how could you
[6:03:08] possibly go forward and try to
[6:03:09] follow the law as an outside
[6:03:10] delivery company if it doesn't
[6:03:13] exist?
[6:03:14] Yeah but the city attorney
[6:03:15] agree with him Either one of
[6:03:21] you And as Deputy City attorney
[6:03:22] David Carlin to respond to
[6:03:22] that?
[6:03:25] >> Yes, I would agree with that
[6:03:26] proposition that's been
[6:03:30] discussed by Councilmember You
[6:03:30] .
[6:03:31] It's a private right of action
[6:03:31] could not be initiated until
[6:03:32] there actually is a permit
[6:03:35] process in place That I guess
[6:03:36] to answer that question
[6:03:36] specifically, there's nothing
[6:03:40] ever to stop somebody from
[6:03:41] filing a lawsuit as I think we
[6:03:41] all know.
[6:03:42] But to succeed in that lawsuit
[6:03:46] is you'd have to have a permit
[6:03:46] process in place to show that
[6:03:48] somebody is in violation of it
[6:03:48] .
[6:03:49] >> That's right.
[6:03:53] Okay.
[6:03:54] I got three lawyers saying yes
[6:03:55] so I'm going to back off at
[6:04:03] the engineer the for those of
[6:04:04] us that are not steeped in this
[6:04:07] whole ordinance, there's no
[6:04:08] limit on the number of permits
[6:04:09] that can be issued.
[6:04:12] Is that correct?
[6:04:12] >> That's correct.
[6:04:13] As long as it's state licensed
[6:04:16] there was an assumption made
[6:04:17] that you have to have both a I
[6:04:21] think a business tax
[6:04:22] certificate and the permit and
[6:04:27] that the expectation is that
[6:04:28] that permit we know what
[6:04:28] the business tax certificate
[6:04:29] amounts are.
[6:04:32] It's kind of a throwaway It's
[6:04:33] probably the cheapest fee that
[6:04:39] we have on the books.
[6:04:44] But if what if survey the fee
[6:04:44] analysis comes back and said
[6:04:45] well yeah, we're not going to
[6:04:48] do anything for 75 bucks or 150
[6:04:48] bucks.
[6:04:49] I don't even know what permit
[6:04:49] you could get for that.
[6:04:52] And it comes back of 300 bucks
[6:04:52] and 500 bucks.
[6:04:56] We're just going to we could
[6:04:56] subsidize it.
[6:04:57] We don't have to have full cost
[6:05:01] recovery but I just want to set
[6:05:02] expectations that in fact it
[6:05:06] MAY not come in that an
[6:05:06] expensive so and then we can
[6:05:07] deal with it because we can
[6:05:08] subsidize it.
[6:05:11] We don't have to charge full
[6:05:12] cost recovery and we can do as
[6:05:12] I think it was suggested
[6:05:16] waivers or carve out I've done
[6:05:17] some of those and some of
[6:05:20] the fees.
[6:05:21] The other question is I think
[6:05:22] every time that we've gone and
[6:05:25] done update our fees and
[6:05:26] penalties, a lot of us have
[6:05:30] grumbled that we don't think
[6:05:31] those rates are high enough to
[6:05:34] actually be a disincentive to
[6:05:35] someone breaking the law.
[6:05:36] I can think lots and lots of
[6:05:39] examples of that.
[6:05:40] This sets a whole new bar of
[6:05:44] jacking up 10,000 per violation
[6:05:47] for abatement $20,000 a day for
[6:05:48] a civil penalty That opens up
[6:05:52] the universe in terms of what
[6:05:52] those can be.
[6:05:53] Why is this okay?
[6:05:54] And when we don't do that with
[6:05:57] any other fee and penalty, was
[6:05:58] that just a policy call or was
[6:06:02] there actually something that
[6:06:03] limited how much we could
[6:06:03] charge?
[6:06:04] I don't know Who wants to
[6:06:07] answer that.
[6:06:07] I can start with the policy
[6:06:08] direction the fee establishment
[6:06:12] amount at $20,000 was a policy
[6:06:12] decision based off of the city
[6:06:16] of L.A. Is a penalty structure.
[6:06:19] The $10,000 value comes from
[6:06:20] what is existing in the land
[6:06:24] development code that was
[6:06:25] recently updated as part of
[6:06:26] the JUNE 8th action.
[6:06:29] So that is the baseline figure
[6:06:34] that we were operating off of.
[6:06:35] I'll leave it there.
[6:06:35] MR..
[6:06:39] So legally again this literally
[6:06:40] goes to the United States
[6:06:44] Constitution and the Eighth
[6:06:45] Amendment and the excessive
[6:06:45] fine clause It would have to be
[6:06:49] to be unlawful to be grossly
[6:06:50] disproportionate to the actual
[6:06:50] fence.
[6:06:53] Again, this is a fee that's up
[6:06:54] to $20,000 per day that a
[6:06:58] violation exists.
[6:06:59] And this would be I guess I
[6:06:59] should say this is the judicial
[6:07:03] civil penalty portion of this.
[6:07:04] So a judge would have to factor
[6:07:08] in what he or she would decide
[6:07:12] would be judicially imposed.
[6:07:13] Right.
[6:07:14] I mean so it's not it's not a
[6:07:18] guarantee $20,000 if we put a
[6:07:18] ceiling on it.
[6:07:19] Okay.
[6:07:23] Fair enough Because again, we
[6:07:27] have private right of action.
[6:07:28] The city's policy generally has
[6:07:28] a ban.
[6:07:29] We're not looking for revenue.
[6:07:32] We're looking for compliance by
[6:07:33] private right of action
[6:07:37] probably assume has no such
[6:07:37] strings.
[6:07:38] They don't have to say Did you
[6:07:41] not know that there was a new
[6:07:42] law that you have to comply
[6:07:43] with that they can just drag
[6:07:46] them into court, is that
[6:07:47] correct?
[6:07:51] Again, once the permit process
[6:07:51] is up and running, yes, that
[6:07:52] that is correct.
[6:07:56] Okay.
[6:07:57] And as I think others said,
[6:07:57] communications are going to be
[6:07:58] a big part of this to try to
[6:08:01] spread the word that not only
[6:08:02] is there a requirement but it
[6:08:02] could be enforced immediately
[6:08:05] unlike how the city typically
[6:08:09] acts.
[6:08:10] I think the one question that I
[6:08:14] didn't hear from my colleagues
[6:08:15] was we got a number of folks
[6:08:16] who apparently operate under
[6:08:19] the county cannabis equity
[6:08:24] program.
[6:08:24] I'm not familiar what are
[6:08:25] the requirements that they had
[6:08:29] to go through to qualify or get
[6:08:29] a permit or whatever the county
[6:08:33] does versus what this ordinance
[6:08:34] will require?
[6:08:35] Is there any differences or any
[6:08:38] added obligations or
[6:08:39] differences between
[6:08:43] the county's permit and this
[6:08:43] proposed permit The counties
[6:08:44] permit?
[6:08:44] From our conversations they
[6:08:48] have four categories and
[6:08:48] they're all land use based So
[6:08:49] their delivery permit also
[6:08:53] include is the facility itself
[6:08:54] and they have a flat fee
[6:08:58] assessed And I know we have
[6:08:59] some county operators here they
[6:08:59] can give the specifics on fees
[6:09:00] but it's in the thousands of
[6:09:06] dollars That's for the license
[6:09:06] for the counties program.
[6:09:10] An operator that's operating
[6:09:11] social equity or not still has
[6:09:12] to obtain their state license
[6:09:15] both at the same time.
[6:09:15] So they would have to obtain
[6:09:19] their state license their
[6:09:20] license to the county as a
[6:09:20] separate licensing process
[6:09:23] application fee And that's
[6:09:27] the county what the city is
[6:09:28] proposing in this ordinance is
[6:09:32] the registration,
[6:09:32] the commercial business
[6:09:33] registration to do business and
[6:09:34] conduct business in the city.
[6:09:37] So it's not a land use permit
[6:09:37] in that sense It's a business
[6:09:41] registration that it's intended
[6:09:41] to complement the existing
[6:09:46] cannabis non cannabis business
[6:09:46] tax certificate.
[6:09:47] So if I understand correctly
[6:09:51] the only new requirement for
[6:09:52] anybody who has a permit or
[6:09:56] license through the county is
[6:09:57] to fill out an online form.
[6:09:57] That's correct.
[6:10:01] That's it.
[6:10:01] So and the tax certificate and
[6:10:06] then the permit fee which we
[6:10:09] hope is $150 range.
[6:10:09] >> Okay.
[6:10:14] And I think that answers all
[6:10:15] the questions.
[6:10:16] So thank you very much for
[6:10:19] answering the questions.
[6:10:20] Thank you for working through
[6:10:20] this.
[6:10:23] I know some of the folks that
[6:10:24] were in opposition to this are
[6:10:25] not going to be satisfied with
[6:10:28] the dialog here going forward
[6:10:34] but I will be in support of
[6:10:35] this.
[6:10:35] So Councilmember Hemphill Thank
[6:10:36] you, counselors.
[6:10:38] I'll just be very brief.
[6:10:39] MR. Carlin mentioned
[6:10:40] constitutional protections that
[6:10:43] clicked in my mind The Doctor
[6:10:43] There would be a due process
[6:10:44] problem for the city to create
[6:10:48] a law but not create the permit
[6:10:49] to enforce the law and then go
[6:10:52] someone from a private reaction
[6:10:53] go to a court to say this
[6:10:54] person doesn't have the permit
[6:10:54] that is required by law.
[6:10:58] So I think it's a I think we
[6:10:58] can say with a high degree of
[6:11:02] certainty that no court would
[6:11:03] allow a private private right
[6:11:06] of action lawsuit if we haven't
[6:11:07] taken the steps.
[6:11:07] There's also equitable remedies
[6:11:11] under the law to save.
[6:11:11] How could I know I was
[6:11:12] violating the law if I never
[6:11:13] had the ability to follow
[6:11:16] the law itself?
[6:11:16] So I appreciate MR. Carlin
[6:11:17] bringing up that phrase so it
[6:11:21] would trigger that history
[6:11:21] lesson.
[6:11:22] Well, we all learned a little
[6:11:25] bit about the Constitution.
[6:11:25] Okay.
[6:11:26] I think I've gotten all my
[6:11:30] questions answered about again
[6:11:31] thank you, Councilmember Campo,
[6:11:35] for finally solving the missing
[6:11:36] piece to regulate something
[6:11:36] that we've talked about for a
[6:11:39] very long time.
[6:11:40] I look forward to Councilmember
[6:11:44] Foster and his work at the city
[6:11:44] level.
[6:11:45] Thank you to staff for
[6:11:46] navigating this and
[6:11:49] the research that you did to
[6:11:50] bring bring this forward.
[6:11:50] So with that I don't see
[6:11:55] anybody else on the lights.
[6:11:56] We have a motion by
[6:11:56] Councilmember Campo and
[6:11:57] the second by council member
[6:12:00] Von Wilbert that we can't
[6:12:00] please call the roll.
[6:12:01] I have set up the voting
[6:12:01] system.
[6:12:11] Please cast your vote.
[6:12:16] The motion passes unanimously
[6:12:17] with District two and district
[6:12:17] date absent.
[6:12:21] All right.
[6:12:21] Thank you again.
[6:12:22] Okay.
[6:12:23] I need to do a little bit of a
[6:12:25] time check.
[6:12:26] This is the point in
[6:12:27] the afternoon session where we
[6:12:30] do not agenda public comment
[6:12:30] Everybody willing to stick
[6:12:31] around for both in-person and
[6:12:38] remote because I hope we got
[6:12:39] six So we're in good shape.
[6:12:40] Thank you because I know I
[6:12:41] don't want to roll over till
[6:12:43] tomorrow.
[6:12:44] It can be done so we will now
[6:12:47] take up non agenda public
[6:12:48] comment We'll take both
[6:12:49] in-person and those
[6:12:49] participating remotely.
[6:12:53] Council members respect and
[6:12:54] appreciate the public input and
[6:12:54] are fully committed to
[6:12:57] protecting every participant's
[6:12:58] free speech rights at council
[6:12:59] and committee meetings.
[6:12:59] Deputy Clerk Please proceed
[6:13:03] with public comment Pearl 2.7
[6:13:04] Known Agenda Public comment is
[6:13:05] an opportunity for members of
[6:13:08] the public to comment on items
[6:13:09] that are not on the agenda but
[6:13:09] within the subject matter
[6:13:12] jurisdiction of the City
[6:13:13] Council.
[6:13:13] Each speaker will have two
[6:13:14] minutes.
[6:13:16] Please note if there are eight
[6:13:17] or more speakers on a single
[6:13:18] topic the maximum time for
[6:13:20] the topic will be 16 minutes.
[6:13:21] If you are in chambers please
[6:13:22] submit your speaker slip If you
[6:13:25] are joining us virtually please
[6:13:26] raise your hand to speak by
[6:13:27] tapping the raise your hand
[6:13:30] icon or if you are a call in
[6:13:31] participant start nine We will
[6:13:33] begin with in-person knowledge
[6:13:38] and public comment.
[6:13:39] Jacob Lewis Edwards I don't
[6:13:43] think he's still here so I'll
[6:13:48] go to the next person allegedly
[6:13:49] Order Please come forward.
[6:14:02] You have two minutes to speak.
[6:14:02] Okay.
[6:14:06] We we go.
[6:14:06] Can you start my time over?
[6:14:07] Thanks.
[6:14:07] Yeah.
[6:14:10] You guys are funny with this
[6:14:10] drug stuff.
[6:14:11] You're like we're going to
[6:14:12] fight the war on drugs by
[6:14:15] heavily regulating the drugs
[6:14:16] make an extremely difficult for
[6:14:16] all those people.
[6:14:20] Who were you know wrongly
[6:14:21] charged any who And it's funny
[6:14:24] to be talking about drugs while
[6:14:25] we have people who are
[6:14:26] whistleblowing against
[6:14:29] the government like some are
[6:14:30] Stephan And the things that are
[6:14:34] going on in the jails at Las
[6:14:35] Colinas and their brutal
[6:14:40] assault from that Andrea Ebbing
[6:14:40] with Anthony Warner totally
[6:14:41] slammed her face into
[6:14:45] the ground and he's playing
[6:14:45] the victim.
[6:14:48] He's like six, six three and
[6:14:49] 260 pounds said she was really
[6:14:53] posturing any who So they have
[6:14:53] done a competency evaluation
[6:14:57] because you know in order to
[6:14:58] silence somebody you got to
[6:14:59] really question their
[6:15:03] competency.
[6:15:04] So then as long as you ask them
[6:15:04] some political questions and
[6:15:08] the person doing the evaluation
[6:15:08] things that you're I don't know
[6:15:09] maybe a conspiracy theorist
[6:15:12] then they'll say that your
[6:15:12] incompetent So how cool is
[6:15:13] that?
[6:15:16] I mean she's got felony charges
[6:15:17] from you know, supposedly
[6:15:18] barring Anthony Warner who you
[6:15:22] know, can still shoot his
[6:15:22] firearm but has to take time
[6:15:23] off of work because his hand is
[6:15:27] so injured.
[6:15:28] But it's just interesting to
[6:15:28] see the lengths that people
[6:15:32] will go to silence people.
[6:15:33] So I mean imagine she might go
[6:15:36] into a mental hospital for like
[6:15:36] two years.
[6:15:36] Who knows?
[6:15:37] And then eventually, you know,
[6:15:40] if somebody deems her competent
[6:15:41] she might be able to face these
[6:15:41] charges.
[6:15:41] Right.
[6:15:45] And right now she's in on two
[6:15:46] misdemeanors.
[6:15:46] She's out on a felony.
[6:15:50] You know, she had her brain
[6:15:50] aneurysm.
[6:15:51] No worries there.
[6:15:51] She might need some more
[6:15:52] surgery while she's in there.
[6:15:55] She already had to go to
[6:15:56] the hospital because they can't
[6:15:56] take care of her.
[6:16:00] >> But good job isn't that cool
[6:16:00] when you're exposing stuff and
[6:16:01] they say you're incompetent
[6:16:05] should be really exciting.
[6:16:05] >> The job.
[6:16:06] Thank you.
[6:16:10] Blair Beekman followed by Bob
[6:16:11] Kozinski, Anthony Ralphs, Lori
[6:16:14] Saldana, Marco Espinosa and
[6:16:25] Terry Best High by Beekman
[6:16:25] Thanks.
[6:16:26] A report back on Andrea's which
[6:16:29] is that where she's at?
[6:16:29] I think she's passing her
[6:16:34] competency test so Oh I'm not
[6:16:34] hearing the story right If
[6:16:35] she's going down again she was
[6:16:38] up before and now it's down and
[6:16:39] it's just amazing she has to go
[6:16:40] through all of this.
[6:16:43] I mean I really hope that can
[6:16:43] be a real effort to be working
[6:16:48] on this issue And overall
[6:16:48] issues of how our police work,
[6:16:49] how our immune systems are
[6:16:52] working.
[6:16:53] Good luck in those efforts.
[6:17:00] I wanted to ask also how
[6:17:01] the just I made a point You
[6:17:02] know, I was I was late to learn
[6:17:05] that the new Good Day Centers
[6:17:06] is probably going to be closing
[6:17:10] in six months time And I think
[6:17:10] we have to make a concerted
[6:17:11] effort to talk about our
[6:17:15] homeless issues more in
[6:17:16] the coming year, how we do that
[6:17:19] and a more sensitivity in that
[6:17:20] department.
[6:17:21] And so I was really hurt in
[6:17:24] the presentation being
[6:17:24] dismissed today.
[6:17:25] I think we have to make that
[6:17:29] extra effort at this time and I
[6:17:30] hope we can.
[6:17:30] So good luck how we can.
[6:17:34] I also wanted to offer at this
[6:17:38] time I'm giving my tech academy
[6:17:39] a bit of a break tonight and
[6:17:43] just consider you know
[6:17:44] the ideas I brought up before
[6:17:44] about budget issues that we can
[6:17:48] still work on budget issues at
[6:17:52] this time And the idea of as a
[6:17:53] very small cut in pay to our
[6:17:57] city government staff if that's
[6:17:58] 3000 people at least if they
[6:18:03] take a cut of say $600 a year
[6:18:04] that's 50 bucks a month.
[6:18:08] I think that's over almost $2
[6:18:08] million in savings that can go
[6:18:12] to the budget and that's not
[6:18:13] including our city council And
[6:18:17] Mayor, what they can take on
[6:18:18] that's a lot of money and I
[6:18:19] hope we want to consider such
[6:18:22] things.
[6:18:23] >> Good luck You can Thank you.
[6:18:23] Thank you.
[6:18:29] Bob Kozinski So video okay.
[6:18:48] Okay Bob because there's a week
[6:18:49] ago today I was hang gliding at
[6:18:50] Dockweiler State Beach in Los
[6:18:53] Angeles under the Dockweiler
[6:18:53] waiver that has been in place
[6:18:54] since 2017 the public has been
[6:18:55] able to hang glider at
[6:18:58] Dockweiler Beach for nearly ten
[6:18:59] years under that waiver a
[6:18:59] decade ago.
[6:19:03] However, hang gliding at
[6:19:04] Dockweiler was not allowed by
[6:19:04] the county of Los Angeles
[6:19:08] without use of a membership.
[6:19:08] Fortunately that all changed
[6:19:09] due to a sequence of events
[6:19:13] that started right here in San
[6:19:13] Diego On JULY 24th, 2011.
[6:19:16] A female student named Shannon
[6:19:17] Hamby was taking lessons at
[6:19:22] Tori through the city where she
[6:19:23] was under radio supervision
[6:19:27] when she was flown directly
[6:19:28] into the path of another
[6:19:28] student.
[6:19:29] She crashed and was badly
[6:19:29] injured.
[6:19:32] I was contacted by Shannon's
[6:19:33] lawyer and asked to testify as
[6:19:36] an expert witness and I did.
[6:19:37] My testimony in SEPTEMBER of
[6:19:38] 2014 was solid and the case was
[6:19:42] quickly settled in Shannon's
[6:19:42] favor for an undisclosed
[6:19:43] amount.
[6:19:46] Yeshivah ended up losing their
[6:19:47] insurance coverage by NOVEMBER
[6:19:47] of 2014.
[6:19:50] I was retaliated against by
[6:19:51] your concessionaire who
[6:19:52] conspired with you spend
[6:19:55] the spring of 2015 to have me
[6:19:55] expelled for my testimony which
[6:20:00] ended my ability to fly at all
[6:20:00] use for sites including Torrey
[6:20:04] Pines and Dockweiler In early
[6:20:04] 2017 we met with newly elected
[6:20:08] Barbara Bree for help.
[6:20:09] Barbara Bree suggested a flight
[6:20:10] waiver to solve the problem but
[6:20:13] she never followed through.
[6:20:14] Joe Foust and I also spoke to
[6:20:15] the Los Angeles County Board of
[6:20:18] Supervisors while Barbara Bree
[6:20:19] did nothing here in San Diego,
[6:20:23] Los Angeles Supervisor Janice
[6:20:23] Hahn stepped up and actually
[6:20:27] instituted a waiver.
[6:20:28] The first DR. Weiler waivers
[6:20:28] were issued to Joe Foust, Frank
[6:20:32] Culver and myself on JULY 26th,
[6:20:32] 2017 and we have flown under
[6:20:36] those waivers without incident
[6:20:37] ever since Barbara Bree dodged
[6:20:38] the issue for the rest of her
[6:20:41] term until her failed mayoral
[6:20:42] bid in 2020.
[6:20:43] Joe LaCava has followed her
[6:20:47] lead throughout his entire term
[6:20:47] reactivate the Torrey Pines
[6:20:48] City Park Advisory Board and
[6:20:51] Institute a Torrey Pines flight
[6:20:54] waiver now Thank you.
[6:20:59] >> Thank you.
[6:21:01] >> Our next speaker is Anthony
[6:21:06] Ralphs.
[6:21:11] Good afternoon City Council.
[6:21:12] I just wanted to speak about
[6:21:13] the concern that I have and
[6:21:17] hearing the expressed financial
[6:21:17] concerns earlier today.
[6:21:18] Miss Campbell who is no longer
[6:21:22] here expressed the $3 million
[6:21:22] concern that she had with
[6:21:27] the study that was done for
[6:21:28] the Phase two project for sdi
[6:21:30] And she thought that the $3
[6:21:31] million was too much, that
[6:21:32] these studies are costing
[6:21:34] the city too much.
[6:21:35] I have a real difficulty in
[6:21:39] understanding how she can on
[6:21:40] one hand have fine problems
[6:21:44] with the costs of the studies
[6:21:45] that cost $3 million to help us
[6:21:45] potentially get off of a
[6:21:49] monopoly that's making $1
[6:21:50] billion of profit every year.
[6:21:54] But she doesn't raise a single
[6:21:54] point with the fact that
[6:21:59] the police budget the public
[6:22:02] liability fund has exceeded
[6:22:03] over $116 million in the last
[6:22:04] ten years or that this year
[6:22:08] alone it's already exceeded $42
[6:22:08] million and we're not even
[6:22:12] finished with all
[6:22:12] the settlements.
[6:22:13] I have not heard the side of
[6:22:17] the city that does not address
[6:22:17] these issues as as Henry Foster
[6:22:21] has expressed before and
[6:22:22] multiple times in this chambers
[6:22:23] he said this is the tale of two
[6:22:23] cities And he's right.
[6:22:27] We do have one half of this
[6:22:27] city council that understands
[6:22:28] and respects our privacy
[6:22:31] concerns, that understands and
[6:22:32] respects that we are not
[6:22:37] property of the state to be
[6:22:37] tracked in our whereabouts of
[6:22:41] where we go that understands in
[6:22:42] the Supreme Court's recent
[6:22:46] ruling that we have freedom in
[6:22:47] the whole totality of our
[6:22:51] movement Although the roads are
[6:22:52] owned yes by the city and
[6:22:53] therefore yes y'all do have
[6:22:57] jurisdiction over the city's
[6:22:57] roads.
[6:22:58] We own our own personal
[6:23:02] sovereignty over our own bodies
[6:23:03] And there are cities that are
[6:23:08] being sued including I believe
[6:23:08] it is Santa Monica No Santa
[6:23:13] Clara.
[6:23:14] >> Thank you for your time.
[6:23:14] Thank you.
[6:23:15] We're next.
[6:23:22] Lori Saldana.
[6:23:23] >> Good evening and thank you
[6:23:27] to those of you who are
[6:23:28] actually still here and some of
[6:23:29] you are maybe even paying
[6:23:29] attention.
[6:23:33] I just got off of a Zoom
[6:23:33] meeting with the Democratic
[6:23:36] Club and one of the council
[6:23:37] members who's not here tonight
[6:23:38] was in that meeting.
[6:23:41] So I'm not sure where
[6:23:41] the priorities are but it's a
[6:23:42] little concerning to me when
[6:23:43] you have discussions on issues
[6:23:47] that are important to this body
[6:23:47] and people leave early and then
[6:23:51] end up at another engagement
[6:23:51] elsewhere.
[6:23:52] You're you're concerned about
[6:23:53] the impacts on public health
[6:23:57] and safety and giving
[6:23:57] the private right of action to
[6:23:58] others in certain industry.
[6:24:01] And I just want to suggest that
[6:24:02] there's another industry in
[6:24:03] town that has serious impacts
[6:24:07] on public health and safety.
[6:24:08] Is it just me or is there
[6:24:09] feedback on this tonight?
[6:24:12] There's feedback.
[6:24:13] >> And if you were to give a
[6:24:14] private right of action to
[6:24:17] people I think you would go a
[6:24:18] long way to closing of several
[6:24:18] problems in our city budget and
[6:24:22] also our housing.
[6:24:23] And of course I'm talking about
[6:24:24] short term vacation rentals.
[6:24:27] They also lack enforcement.
[6:24:28] They also have people operating
[6:24:29] without permits.
[6:24:29] They also have people putting
[6:24:34] lives and safety at risk.
[6:24:34] Around the corner from my
[6:24:35] house.
[6:24:35] There's a short term rental
[6:24:39] that has caught on fire that
[6:24:39] has flooded raw sewage into
[6:24:40] the streets.
[6:24:41] And it took me over a year to
[6:24:44] get someone to respond.
[6:24:45] If I had a private right of
[6:24:46] action I could have gone at
[6:24:50] them as a property owner
[6:24:51] nearby.
[6:24:51] Also they don't pay commercial
[6:24:52] trash hauling fees.
[6:24:56] They pay residential fees and
[6:24:56] they're businesses operating in
[6:24:57] our neighborhoods.
[6:24:58] If you are serious about
[6:25:01] private right of action, give
[6:25:02] residents who are next door to
[6:25:02] short term rentals that are
[6:25:07] violating the permitting,
[6:25:07] violating health and safety.
[6:25:08] And let us go after them
[6:25:13] because I promise you they are
[6:25:13] not disadvantaged.
[6:25:14] They have people that owned
[6:25:14] multiple properties that form
[6:25:18] consortiums that buy our
[6:25:19] properties in Ocean Beach and
[6:25:19] elsewhere and push out full
[6:25:24] time residential rent renters
[6:25:25] and homeowners.
[6:25:26] If you want a right of action
[6:25:26] apply it to short term rent.
[6:25:27] Thank you.
[6:25:28] That does conclude your time.
[6:25:34] >> Marco Espinosa.
[6:25:35] >> Good evening.
[6:25:40] My question goes a Boston
[6:25:41] Avenue park ideas.
[6:25:46] Um the it's not helpful if I
[6:25:47] don't have a map for you.
[6:25:52] Sorry.
[6:25:53] Um, I know we already iterated
[6:25:58] the coming onto the freeway
[6:25:58] The bollards that first section
[6:25:59] of park between the freeway
[6:26:04] onramp and the bridge that goes
[6:26:04] over the freeway.
[6:26:05] I think that could be
[6:26:09] the section in the diagram
[6:26:09] shows how it's owned.
[6:26:10] It doesn't include actually
[6:26:10] the walkway.
[6:26:15] Um, and the bridge.
[6:26:16] Um, so when I got to the park I
[6:26:17] was like oh that's something to
[6:26:21] consider on Google Maps.
[6:26:22] The park actually looks really
[6:26:22] small.
[6:26:23] Doesn't seem like there's a lot
[6:26:27] space but once you get there
[6:26:28] quite a lot of space for a park
[6:26:29] If it does end up being the um
[6:26:32] tennis courts or soccer fields
[6:26:39] um in the portion that's like a
[6:26:39] longer portion Nothing could
[6:26:40] fit there.
[6:26:40] That doesn't need to be like a
[6:26:41] net or something that goes
[6:26:45] along that nice new barrier
[6:26:45] wall for the freeway so
[6:26:46] eyeballs don't go into
[6:26:50] the freeway as cars are going.
[6:26:55] And then the second portion of
[6:26:56] land use available for park
[6:26:57] Right now it's a cycle center.
[6:27:03] I remember I heard that
[6:27:04] possibly So we chose one second
[6:27:04] over which then we left like a
[6:27:08] little strip on the side along
[6:27:08] Charles Creek and at the creek
[6:27:09] was a lot cleaner, a lot nicer.
[6:27:13] I mean you can make that into
[6:27:14] some kind of little beach kind
[6:27:14] of thing but it's a really
[6:27:15] dirty water so.
[6:27:20] And if the recycle center does
[6:27:20] move out and the so be chosen
[6:27:27] to move in, that's a huge whole
[6:27:27] plot of land for a park that
[6:27:28] had a nice and everything.
[6:27:29] That would be a lot of fun.
[6:27:33] And couple of more that you
[6:27:37] measured did not pass but I saw
[6:27:38] advertised as 5000 to 5000 but
[6:27:38] on the values 8000.
[6:27:39] Thank you.
[6:27:40] That does conclude your time.
[6:27:47] Terry Best Terry Best District
[6:27:47] three.
[6:27:52] Please stop allowing special
[6:27:53] interest to write laws that
[6:27:53] create and strengthen
[6:27:54] monopolies.
[6:27:59] Stop doing the bidding of rich
[6:27:59] white men to fund your future
[6:28:00] political endeavors.
[6:28:05] Stop allowing special interests
[6:28:05] using labor to attack those
[6:28:11] less fortunate.
[6:28:12] This nonsense theme here is
[6:28:16] precursory support for your
[6:28:16] 2028 mayor campaign and it
[6:28:17] looks ugly.
[6:28:17] Is that the look you want
[6:28:23] further marginalize vulnerable
[6:28:23] people?
[6:28:24] Again, shame on you MR. Trump.
[6:28:28] You.
[6:28:29] >> Thank you.
[6:28:29] That does conclude in-person
[6:28:35] public comment.
[6:28:36] I have started the five minute
[6:28:36] timer in council chambers.
[6:28:37] We will now turn to the virtual
[6:28:41] queue in which there are seven
[6:28:41] participants requesting to
[6:28:42] speak.
[6:28:42] We'll begin with Tyrion Skelly.
[6:28:50] Please begin.
[6:28:51] Good evening San Diego City
[6:28:51] Council Chair.
[6:28:55] My name is Scully and I work
[6:28:56] with my planning group on good
[6:28:56] public health and safety
[6:28:57] policies and land use
[6:28:57] decisions.
[6:29:02] Where I live has windy
[6:29:02] sometimes rocky roads,
[6:29:03] overgrown foliage and some
[6:29:07] roads reported that at times
[6:29:08] and dangerous when it rains or
[6:29:08] is windy as it's been in
[6:29:12] the last couple of days.
[6:29:13] JUNE is Brain Awareness Month
[6:29:14] and I'd like to talk about
[6:29:19] the dangers of marijuana and
[6:29:19] alcohol impaired drivers.
[6:29:20] This is a situation we know
[6:29:21] well in our family oriented
[6:29:25] neighborhoods with our perilous
[6:29:25] roadways.
[6:29:26] Recently the Journal of
[6:29:27] Adolescent Health article wrote
[6:29:30] that marijuana policies
[6:29:31] decisions must acknowledge that
[6:29:36] access access to an
[6:29:36] intoxicating substance that
[6:29:37] appeals to young people will
[6:29:42] end up causing harm No more.
[6:29:43] So then when we drive
[6:29:43] the tribute again describe
[6:29:44] the conditions of our roadways
[6:29:49] and the delays to fix them.
[6:29:49] I would like to respectfully
[6:29:50] suggest that damaged roadways
[6:29:54] combined with drug impaired
[6:29:55] driving is one more lawsuit
[6:29:55] about to happen?
[6:30:01] At least there is one thing you
[6:30:02] could do to mitigate that has
[6:30:02] been contributing to
[6:30:03] the dangerous the dangerous use
[6:30:06] of can and cannabis removing
[6:30:07] enticing and distracting
[6:30:12] marijuana billboards from our
[6:30:13] roadways.
[6:30:13] Summer 26 would be the perfect
[6:30:14] time for policies to happen
[6:30:19] that would ban marijuana from
[6:30:19] our neighborhood roadways.
[6:30:20] Thank you for hearing my
[6:30:24] concerns this evening.
[6:30:24] Thank you.
[6:30:25] Next up Peggy Walker.
[6:30:30] Please begin.
[6:30:30] Thank you.
[6:30:31] Council members Food and gas
[6:30:36] prices MAY be high today but
[6:30:37] drugs like high potency
[6:30:38] marijuana have never been more
[6:30:42] affordable or available And
[6:30:43] that's reflected in today's
[6:30:43] marijuana delivery item
[6:30:49] addressed earlier.
[6:30:49] In a society seeking
[6:30:50] the convenience of home
[6:30:50] delivery for just about
[6:30:55] everything that item shows
[6:30:56] psychotropic drug consumers are
[6:30:56] no exception.
[6:31:01] And the upshot of that is that
[6:31:02] a society where people can get
[6:31:03] high so easily it's also less
[6:31:07] healthy and that's reasonable.
[6:31:08] That truth was put forth in a
[6:31:12] recent New York Times article
[6:31:13] headlined It Shouldn't Be This
[6:31:14] Easy to Get High And so many of
[6:31:19] us parents agree.
[6:31:20] Citing the fact that 48 million
[6:31:20] Americans are addicted to an
[6:31:25] intoxicant like marijuana,
[6:31:25] the Times suggests we should be
[6:31:26] making it easier for people to
[6:31:31] get help rather than get high.
[6:31:32] A straightforward way to curb a
[6:31:37] particularly uptick in use and
[6:31:38] its outcomes of poor physical
[6:31:39] and mental health and
[6:31:39] addiction.
[6:31:43] The proposals it's higher
[6:31:44] taxation on marijuana reasoning
[6:31:45] that people sicker less when
[6:31:48] something's more costly.
[6:31:49] With that in mind I ask your
[6:31:50] consideration of increased
[6:31:56] taxes for all marijuana
[6:31:56] products.
[6:31:57] However results are delivered
[6:32:01] and more transparent reporting
[6:32:02] of how much in taxes for
[6:32:03] marijuana is being collected
[6:32:08] and transfer nc and how they're
[6:32:09] being used by the city.
[6:32:09] Thank you for that
[6:32:14] consideration.
[6:32:14] Thank you.
[6:32:15] Next up is Judith Strain.
[6:32:19] Please begin.
[6:32:20] >> Good evening San Diego City
[6:32:20] Council.
[6:32:21] I appreciate that you've stated
[6:32:25] that doesn't go unnoticed by
[6:32:26] the public when you make those
[6:32:26] sorts of sacrifices.
[6:32:27] I want to speak to a
[6:32:31] terminology that we're seeing
[6:32:32] in public health more and more
[6:32:33] and that is called gas station
[6:32:33] heroin.
[6:32:38] It's kind of used as a catchall
[6:32:38] terminology for gas station
[6:32:44] intoxicants but we now see
[6:32:44] those products still available
[6:32:45] to our young people.
[6:32:46] They include in their often
[6:32:50] sort of spotlight kratom.
[6:32:50] They're also including what's
[6:32:56] called magic mushrooms not I'm
[6:32:56] sorry nitrous oxide and other
[6:33:01] products that contain high thc
[6:33:02] in hiding under cbd products.
[6:33:03] I just mention it because
[6:33:08] the terminology is getting used
[6:33:09] more and more about where our
[6:33:14] children buy these items at gas
[6:33:15] stations which right at the top
[6:33:15] of the list and the number of
[6:33:16] gas stations in the city of San
[6:33:16] Diego.
[6:33:20] One can only guess And if we
[6:33:21] were to enforce the laws
[6:33:21] against these products here in
[6:33:25] our city, just think of
[6:33:26] the amount of money that we
[6:33:26] could bring in.
[6:33:27] So as you hear the terminology
[6:33:31] gas station heroin and realize
[6:33:31] that they're talking about all
[6:33:32] the intoxicants that are now
[6:33:37] portable at gas stations, I
[6:33:38] think what we could do to at
[6:33:38] least stop it by enforcement
[6:33:43] and gather up from them they
[6:33:44] find that come with it.
[6:33:45] Boy, it could be a double win
[6:33:46] for everybody.
[6:33:53] >> Thank you.
[6:33:54] >> Please note that the five
[6:33:54] minute timer has concluded with
[6:33:55] four speakers left in
[6:33:55] the queue.
[6:33:59] No other speakers will be taken
[6:33:59] at this time.
[6:34:00] Next up Phyllis.
[6:34:10] Please begin.
[6:34:18] Phyllis, please On the air.
[6:34:30] I can assure you Phyllis I can
[6:34:30] on mute for you.
[6:34:33] We're going to move on.
[6:34:38] Okay.
[6:34:39] Next up, Becky Wrap.
[6:34:51] Please begin.
[6:34:52] Good evening.
[6:34:53] I need a second rapid increase
[6:34:56] in my concerns about
[6:34:57] transparency and
[6:34:57] accountability.
[6:34:58] In San Diego, the marijuana
[6:35:03] marijuana permitting program
[6:35:03] almost seven years ago,
[6:35:04] the rich Bernardo community
[6:35:08] engaged extensively in
[6:35:08] the public process for
[6:35:09] the original marijuana
[6:35:09] application.
[6:35:14] Residents attended hearings,
[6:35:15] submitted written comments and
[6:35:16] with strong concern about this
[6:35:17] being a pot shop in their
[6:35:20] neighborhood.
[6:35:21] But what has happened since
[6:35:21] that approval is basically
[6:35:22] invisible to the public.
[6:35:27] That original permit has now
[6:35:28] changed hands multiple times.
[6:35:29] The operator that the community
[6:35:29] initially evaluated is no
[6:35:33] longer the operator today.
[6:35:34] Ownership has shifted through
[6:35:35] acquisitions and corporate
[6:35:35] transactions and now
[6:35:39] the business is associated with
[6:35:40] a brand called Lake House.
[6:35:41] Residents were never notified
[6:35:45] of these changes.
[6:35:46] There were no public hearings,
[6:35:46] no neighborhood notices and no
[6:35:47] requirement for the city to
[6:35:48] explain who ultimately controls
[6:35:50] these permits.
[6:35:51] The community was fully engaged
[6:35:52] in the original decision but it
[6:35:57] has been in the dark for years
[6:35:57] since.
[6:35:58] That raises a transparency
[6:35:58] question.
[6:36:02] If public input is required to
[6:36:03] approve a pot shop, why is
[6:36:03] there no transparency when that
[6:36:08] same permit is sold or
[6:36:09] transferred to an entirely
[6:36:09] different company multiple
[6:36:10] times?
[6:36:14] The operator behind the permit
[6:36:15] is not a minor detail.
[6:36:15] It speaks to accountability,
[6:36:20] business practices and
[6:36:20] the enforcement history.
[6:36:21] It also raises concerns about
[6:36:22] branding and public perception
[6:36:25] and the like.
[6:36:26] The House does not communicate
[6:36:27] to the public that this
[6:36:31] business will be selling highly
[6:36:32] intoxicating products.
[6:36:32] Rather the message it sends is
[6:36:37] that our being now has a new
[6:36:37] bakery in town.
[6:36:38] This is unacceptable and
[6:36:39] communities deserve to know who
[6:36:43] is operating in their
[6:36:44] neighborhoods not just at
[6:36:44] the moment of approval but
[6:36:45] throughout the entire life of a
[6:36:45] permit.
[6:36:49] Thank you.
[6:36:49] Thank you.
[6:36:51] Next, John Elway.
[6:36:57] Please begin.
[6:36:58] Hi John.
[6:36:58] You have lived experience
[6:37:04] advisors so my team and I went
[6:37:04] through all the press articles
[6:37:05] and were in attendance or
[6:37:10] listening to the majority of
[6:37:11] the budget meetings and we
[6:37:16] started to find out that
[6:37:16] the city is not only funding
[6:37:22] the partial operation over at
[6:37:23] the new Good data center but
[6:37:24] that you are licensing it
[6:37:28] meaning that nobody could go
[6:37:29] ahead and or and fill in
[6:37:34] the money or or move in and
[6:37:34] operate that separately from
[6:37:35] the existing provider.
[6:37:39] I can't believe after all
[6:37:40] the work we've done building
[6:37:41] relationships that nobody had
[6:37:45] the courtesy to say that Well
[6:37:46] actually I probably should
[6:37:47] believe it because obviously it
[6:37:51] was hidden from the public.
[6:37:52] The fact that you were taking
[6:37:52] away the only place that
[6:37:57] homeless people could go in
[6:37:58] the entire city and not be
[6:37:59] addressed at least from 9 to 5
[6:38:03] for a few days a week.
[6:38:03] I'd like to understand how this
[6:38:04] decision occurred and was that
[6:38:09] included in the budget
[6:38:09] resolution?
[6:38:10] >> Thank you.
[6:38:15] Thank you.
[6:38:16] Next our last caller is caller
[6:38:18] with the last four digits 8700
[6:38:25] please begin.
[6:38:26] Thank you.
[6:38:31] First of all, Joy Senator a
[6:38:32] first of all, a big thank you
[6:38:32] and five stars for
[6:38:36] the performance by our deputy
[6:38:37] city clerk.
[6:38:43] Thank you so much And the next
[6:38:44] PRESIDENT For your humor was
[6:38:45] present today.
[6:38:49] Thank you.
[6:38:50] Thank you.
[6:38:50] I really enjoyed that.
[6:38:51] And then a request from MR.
[6:38:56] Stump.
[6:38:56] I'm wondering if you could
[6:38:57] during the public comment give
[6:39:03] the public his nine step plan
[6:39:03] for fda and that sounds
[6:39:07] interesting.
[6:39:08] Next I want to speak to
[6:39:13] the gentleman who used the word
[6:39:14] union bust and I felt his anger
[6:39:19] in those words.
[6:39:20] I respect that anger.
[6:39:25] Next, I love the boldness and
[6:39:26] the fight that was present in
[6:39:31] the chamber today.
[6:39:32] Did you feel the beautiful
[6:39:32] tapestry of all the people to
[6:39:39] be There was a little bit like
[6:39:44] what we feel when we say one
[6:39:44] people, one family, one San
[6:39:48] Diego I'm going to get to this
[6:39:49] tomorrow.
[6:39:49] Look forward to that.
[6:39:55] But to all.
[6:39:56] Thank you.
[6:39:56] This concludes lunch and
[6:39:57] the public comment.
[6:39:57] All right.
[6:39:58] You can catch me at The Late
[6:40:00] Show at the Comedy Club later
[6:40:00] tonight.
[6:40:01] With that, does the city
[6:40:02] attorney have anything to
[6:40:02] report out in closed session?
[6:40:07] There is nothing to report.
[6:40:07] All right.
[6:40:08] Thank you.
[6:40:09] With that we will now turn
[6:40:09] counsel to the regularly
[6:40:11] scheduled council meeting
[6:40:12] tomorrow, Tuesday, JUNE 23rd,
[6:40:13] 2026 at 10 A.M. Or shortly
[6:40:13] thereafter.