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[00:00:04]

ALL RIGHT,

[ CALL TO ORDER: Council Chamber INVOCATION: City Attorney Jones PLEDGE OF ALLEGIANCE: Councilmember Gomez ROLL CALL: Mayor Beamish Mayor Pro Tem Espinoza Councilmember Gomez Councilmember Medrano Councilmember Shaw]

SAYING THAT IT IS SIX 30.

I WILL NOW CALL THE ORDER, THE REGULAR MEETING OF THE CITY COUNCIL OF AUGUST 3RD, 2020.

LET THE RECORD REFLECT THAT IT IS 6:30 PM.

THE INVOCATION WILL BE GIVEN BY CITY ATTORNEY RICHARD JONES FOLLOWED BY THE PLEDGE OF ALLEGIANCE LED BY COUNCIL MEMBER GOMEZ.

AND LORI, IF YOU'D MUTE EVERYBODY AS WE GO THROUGH THIS THINGS.

OKAY.

I MEAN, YEAH.

AND THEN, UM, DURING OUR HEADS, AS WE GATHERED TO DO THE IMPORTANT BIT, WE'RE GRATEFUL FOR YOUR HAND IS WE GET THROUGH THESE DIFFICULT TIMES WITH A COVERT VIRUS.

WE'RE GRATEFUL FOR THOSE WHO SERVE OUR COMMUNITY AND GRATEFUL FOR THOSE TO REACH OUT TO THOSE WHO ARE SUFFERING FROM THIS PANDEMIC OF LIGHT.

WE ASKED YOU THE GUY, THE CITY COUNCIL, STEVEN, THE AFRICAN WISDOM AND INSIGHT THAT THEY DO THAT, WHICH IS BEST FOR ALL OF ABRA.

THEY ACT WITH INTEGRITY AND WITH A HEART OF CONCERN OF EMPATHY FOR THE CITIZENS OF BARBARA.

I SAY THESE THINGS TO UNBELIEF NEIGHBORS.

I SAID, JESUS CHRIST.

AMEN.

THANK YOU, BECK.

WILL EVERYBODY PLEASE STAND AND PLAY THE FLAG AND REPEAT AFTER ME TO THE FLAG OF UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL PLAY BALL.

THANK YOU VERY MUCH, JIM AND DICK.

WELL, THE PLEASE CALL THE ROLL COUNCIL MEMBER MEDRANO HERE.

COUNCIL MEMBER SHAW COUNCIL MEMBER GOMEZ HERE.

MAYOR PRO TEM ESPINOSA.

DEAR MAYOR.

BEAMISH.

I AM PRESENT.

THANK YOU VERY MUCH.

ARE THERE ANY CLOSED SESSION ANNOUNCEMENTS? THERE ARE NONE.

THANK YOU.

AND THERE ARE NO PROCLAMATIONS OR PRESENTATIONS.

SO

[ PUBLIC COMMENTS: When addressing the City Council, please complete a Speaker’s Card before leaving the Council Chamber. This is the time for the public to address any item of interest to the public that is within the subject matter jurisdiction of the City NOT appearing on this Agenda. Speakers must limit their comments to three (3) minutes each. The total time period for public comment is 30 minutes. Per Government Code Section 54954.3(a), the City Council cannot take action or express a consensus of approval or disapproval on any public comments regarding matters which do not appear on the printed agenda. ]

AT THIS, THIS IS THE TIME FOR THE PUBLIC TO ADDRESS ANY ITEM OF INTEREST TO THE PUBLIC THAT IS WITHIN THE SUBJECT MATTER JURISDICTION.

THE CITY NOT APPEARING ON THIS AGENDA.

IF THE PUBLIC ADDRESSES ANYTHING OUTSIDE THE SUBJECT MATTER JURISDICTION OF THE CITY, NOT APPEARING ON THIS AGENDA, THEY ARE SUBJECT TO IMMEDIATE DISCONNECTION FOR PUBLIC COMMENTS.

SPEAKERS MUST LIMIT THEIR COMMENTS TO THREE MINUTES.

EACH THE TOTAL TIME PERIOD FOR PUBLIC COMMENT IS 30 MINUTES PER GOVERNMENT CODE SECTION FIVE, FOUR NINE FIVE 4.38.

THE CITY COUNCIL CANNOT TAKE ACTION TO EXPRESS THE CONSENSUS OF THE APPROVAL OR DISAPPROVAL ON ANY PUBLIC COMMENTS REGARDING MATTERS, WHICH DO NOT APPEAR ON THE PRESENT AGENDA.

ALL RIGHT, PUBLIC COMMENT PERIOD IS OPEN.

LAURIE, DO WE HAVE ANY BUDDY ON THE LINE OR EMAILS? BRIANNA WILL PIPE IN AND LET YOU KNOW WHO'S ON THE LINE.

ALRIGHT.

HI.

YES.

MA'AM WE'LL HAVE ONE PERSON WISHING TO SPEAK.

I WILL GO AHEAD AND UNMUTE THEM NOW.

THANK YOU.

HI, CAN YOU HEAR ME? WE CAN HEAR YOU.

THANK YOU VERY MUCH.

HI, MY NAME IS MATT GRIPPY.

I'VE BEEN RIDING AT THE HARBOR SKATE PARK FOR 13 YEARS.

NOW.

LAST YEAR I GOT INVOLVED WITH THE CITY ABOUT GETTING THE LIGHTS TURNED BACK ON AT THE STATE PARK.

AND I WAS VERY IMPRESSED BY THE CITY'S WILLINGNESS TO WORK WITH ME ON THIS AND WITH OTHER ISSUES CONCERNING THE PARK, IT WAS DISHEARTENING TO SEE THE SKATE PARK CLOSED DURING APRIL AND MAY, BUT IT WAS UNDERSTANDABLE CONSIDERING THAT WE DIDN'T KNOW MUCH ABOUT THE MORTALITY OF COVID-19.

NOW IN AUGUST, WE HAVE PLENTY OF DATA FROM THE CDC IN DOZENS OF INDEPENDENT STUDIES, ATTRIBUTING A VERY LOW MORTALITY RATES COVID-19 BUT FEW WEEKS AGO YOU CLOSED THE SKATE PARK AGAIN BECAUSE OF THE CONTINUED SPIKE IN CASES, BUT WE SHOULDN'T CALL THEM CASES THAT IMPLIES THE ILLNESS.

WHAT THEY REALLY ARE AS POSITIVE TEST RESULTS WERE MORE THAN 80% OF THE PEOPLE ARE COMPLETELY ASYMPTOMATIC.

THESE TESTS COMMONLY GIVE FALSE POSITIVES AND HAVE BEEN PROVEN TO BE INACCURATE.

EVEN WITH THE INACCURACY OF THESE TESTS, POSITIVE TEST RESULTS ARE OFFICIALLY STARTING TO DECLINE.

I DON'T SEE REASONABLE JUSTIFICATION FOR THE CLOSURE OF LAHABRA CITY SKATE PARK, ESPECIALLY WHEN THE SURROUNDING CITYSCAPE HEARTS REMAIN OPEN.

WHY CAN I RIDE AT BRAY ESCAPE PARK? WHAT ARE YOUR SKATE PARK AND FULLERTON SKATE PARK, BUT NOT AT WILL HARBOR SKATE PARK.

ANOTHER THING AMONG OTHER THINGS, ESCAPE PARK IS A POSITIVE OUTLET FOR KIDS WITH DELINQUENT TENDENCIES.

NOW YOU'VE STRIPPED THEM OF THEIR MOST CONSTRUCTIVE THING TO DO SO OF COURSE, THEY'RE GOING TO GET INTO TROUBLE.

THE FRENCH PHILOSOPHER VOLTAIRE SAID, MAN WAS NOT BORN TO BE IDLE.

AND THERE'S THE OLD ADAGE THAT IDLE HANDS DO THE DEVIL'S WORK.

I KNOW THAT THESE KIDS STILL DO DELINQUENT THINGS WITH THE SKATE PARK IS OPEN, BUT IF YOU KICK THEM OUT OF THE PARK, THEY'LL JUST GO ELSEWHERE AND GET INTO TROUBLE.

I'VE TALKED TO POLICE OFFICERS WHO HAPPENED TO BE POSTED UP IN THE PARKING LOT AT THE NEW MAYBERRY SKATE PARK IN WOODIER.

AND THEY SAID THAT WHILE THE PARK ISN'T TECHNICALLY OPEN, THEY'RE LETTING KIDS SKATE BECAUSE THEY KNOW IT'S BETTER FOR THEM TO BE SKATING AT THE PARK THAN AT HOME

[00:05:01]

PLAYING VIDEO GAMES, SITTING IN THE MIDST OF A DESTRUCTIVE HOME LIFE OR GETTING INTO TROUBLE OUT ON THE STREET BY KICKING SKATERS OUT OF THE SKATE PARK.

YOU'RE WIDENING THE GAP BETWEEN SKATERS AND LAW ENFORCEMENT.

ALL THIS DOES IS CREATE RESENTMENT TOWARDS POLICE OFFICERS AND THE CITY FOR ENFORCING STUPID RULES.

I KNOW YOU'RE TRYING TO ABIDE BY STATE GUIDELINES BY CLOSING THE PARK.

AND I KNOW THAT THE STATE IS WITHHOLDING FUNDS AND RESOURCES TO CITIES AND COUNTIES.

IF THEY DON'T ADHERE TO ITS DIRECT TONY AND PUBLIC HEALTH ORDERS, BUT THIS IS EXTORTION.

NEWSOME CAN ISSUE WHATEVER GUIDELINES HE WANTS, BUT THAT DOES NOT MEAN THAT HOMBRE HAS TO ADHERE TO THEM, ESPECIALLY WHEN THEY'RE UNJUST.

THE DIRECTOR OF THE CDC, ROBERT REDFIELD STATED LAST WEEK THAT WE'RE SEEING FAR GREATER SUICIDES NOW THAN WE ARE DEATHS FROM COVID.

WE'RE SEEING FAR GREATER DEATHS FROM DRUG OVERDOSE THAN WE ARE FROM COVEN ANXIETY, DEPRESSION, ISOLATION, AND SELF HARM AMONG TEENAGERS IS A FAR BIGGER PROBLEM THAN COVID-19.

AND HAVING OUR CITY PARKS AND OTHER RECREATIONAL FACILITIES CLOSED IS UNDOUBTEDLY CONTRIBUTING TO THIS IS THE DECLINE IN OUR CHILDREN'S AND TEENAGERS, MENTAL HEALTH AND NECESSARY SACRIFICE FOR STATE RESOURCES.

I'LL CLOSE WITH THIS WITH A QUOTE BY THOMAS JEFFERSON.

IF THE LAW IS UNJUST, MAN IS NOT ONLY RIGHT, THAT IT'S SO BAD, HE IS OBLIGED TO DO SO.

I'M ASKING CITY COUNCIL TO OPEN OUR PARKS AND LET US SKATE.

THANK YOU.

THANK YOU FOR YOUR COMMENTS.

I APPRECIATE IT.

DO WE HAVE ANYBODY ELSE ON THE LINE? HI MARY.

YES, WE DO HAVE ONE MORE, UH, PUBLIC SPEAKER.

I WILL GO AHEAD AND UNMUTE THE CALLER NOW.

THANK YOU.

HEY, MAYOR AND CITY COUNCIL.

MY NAME'S ARDEN ARMY.

I'M A RESIDENT OF LAHABRA FOR THE LAST 20 YEARS.

CAN REALLY HEAR YOU.

SORRY.

I HEARD SOMEBODY IN THE BACKGROUND.

EVERYBODY IS EVERYBODY MUTED, LAURIE.

OKAY.

YES.

EVERYBODY'S MUTED.

GO AHEAD AND CONTINUE.

OKAY.

SORRY FOR THE INTEGRATION.

NO WORRIES.

MY NAME'S ARDEN ARMY.

I'M A RESIDENT OF LAHABRA FOR THE LAST 20 YEARS.

AND ONE OF THE ITEMS THAT I'D LIKE TO JUST PUT ON THE, ON THE CONVERSATION TABLE FOR THE, FOR THE, UH, THE CITY COUNCIL IN THE MIRROR IS, YOU KNOW, I KNOW OUR CITY, UH, CURRENTLY DOES NOT ALLOW SAFE AND SEEN FIREWORKS.

UM, I'D LIKE, I'D LIKE THE CITY THAT TO THINK ABOUT THAT AGAIN, YOU KNOW, OUR, OUR, OUR, UH, SCHOOLS, UH, ATHLETICS, YOU KNOW, DIFFERENT CHARITIES, ET CETERA.

IT'S A GREAT WAY FOR THEM TO FUND THOSE ACTIVITIES.

UM, WITH THE CANCELLATION OF THE CORN FESTIVAL AND OTHER EVENTS, NO FUNDS ARE GOING TO BE AT A, AT A TIGHTER DEMAND IN THE FUTURE FOR THOSE ORGANIZATIONS.

AND YOU KNOW, WHETHER IT'S A CITY COUNCIL VOTE OR WE WOULD PUT IT BACK ON THE BALLOT OR SOMETHING, UM, I'D LIKE LEAST PEOPLE TO THINK ABOUT IT AGAIN.

UM, MANY OF OUR SURROUNDING CITIES HAVE, UH, HAVE SAFE AND SANE FIREWORKS.

AND IT'S A SHAME THAT, YOU KNOW, SOME OF OUR SCHOOLS ARE ACTUALLY GOING TO OTHER CITIES TO SELL FIREWORKS, TO DRY IT, TO TRY TO, UH, TO RAISE FUNDS WHEN OUR OWN CITY HAS THE ABILITY TO CHANGE THAT IF THEY CHOOSE.

SO THAT'S MY COMMENT.

I THANK YOU FOR YOUR TIME.

THANK YOU ART.

ALSO, IF YOU'D LIKE TO TALK THE NAME OR SOUND BITE, I DON'T REALLY WANT TO ENCOURAGE YOU TO GIVE YOUR PHONE NUMBER OVER THE PHONE, CAUSE REALIZE THAT YOU COULD CALL IT CITY HALL TOMORROW AND PROVIDE YOUR PHONE NUMBER.

I'LL CALL YOU BACK.

GREAT.

THANK YOU.

AND WHO'S SPEAKING.

THIS IS AN AIR BEAMISH MANMADE.

I'M SORRY.

I WILL CALL YOU TOMORROW.

THANK YOU, MAYOR B MUCH.

OKAY, GREAT.

THANK YOU.

ALRIGHT, ANNA, ANYBODY ELSE ON THERE? I DON'T SEE ANYBODY, UM, RAISING THEIR HAND, BUT IF THERE ARE ANY COLORS ON THE LINE WISHING TO SPEAK, WE JUST HAD A LOT OF PEOPLE GET ON.

GO AHEAD AND HIT STAR NINE ON YOUR PHONE.

AND THAT WILL INDICATE THAT YOU WISH TO SPEAK.

THANK YOU.

AND LORI, YOU'RE KEEPING TRACK OF THE TIME, RIGHT? CORRECT.

THANK YOU.

NOBODY RAISED THEIR HAND BREE.

NO, NOBODY HAS INDICATED THEY'D LIKE TO SPEAK.

OKAY.

THEN AT THIS TIME I WILL CLOSE PUBLIC COMMENT AND

[ CONSENT CALENDAR: All matters on Consent Calendar are considered to be routine and will be enacted by one motion unless a Councilmember or member of the audience requests separate action or removal of an item. Removed items will be considered following the Consent Calendar portion of this agenda. Members of the audience will have the opportunity to address City Council on removed items at that time. Speakers must limit their comments to three (3) minutes each.]

WE WILL GO TO THE CONSENT CALENDAR.

ALL MATTERS ON CONSENT.

CALENDAR ARE CONSIDERED TO BE ROUTINE AND WILL BE ENACTED BY ONE MOTION.

ALYSSA COUNCIL MEMBER, OR A MEMBER OF THE AUDIENCE REQUEST A SEPARATE ACTION OR REMOVAL OF AN EYE ON REMOVED ITEMS WILL BE CONSIDERED FOLLOWING THE CONSENT CALENDAR PORTION OF THIS AGENDA.

MEMBERS OF THE AUDIENCE WILL HAVE THE OPPORTUNITY TO ADDRESS CITY COUNCIL ON REMOVED ITEMS. AT THAT TIME, SPEAKERS MUST LIMIT THEIR COMMENTS TO THREE MINUTES.

H THE CONSENT CALENDAR APPEARS ON PAGE TWO

[00:10:01]

ON THE AUDIENCE AGENDA ITEMS. ONE THROUGH SIX SQUID STAFF LIKED TO REMOVE ANY ITEMS. MR. MAYOR IS THE CITY MANAGER.

SADRO A NO, SIR.

THANK YOU.

ANY OF MY COLLEAGUES ON COUNCIL? WOULD YOU LIKE TO REMOVE AN ITEM? NO.

MR. MAYOR? NOPE.

NO.

MR. MATT? NO.

OKAY.

UH, ANYONE LISTENING ON THE LINE, WOULD THEY WANT TO REMOVE AN ITEM? I GUESS I NEED TO RAISE THEIR HAND.

SO RE JUST LET ME KNOW IN 30 SECONDS, THROW UP OR LORI 30 SECONDS IS UP MAYOR.

ALL RIGHT.

THANK YOU.

THEN I WILL, UH, CALL FOR ACTION.

UM, MR. MAYOR, MR. MAYOR, JAMES GOMEZ.

I'D LIKE TO MAKE A MOTION TO APPROVE THE CONSENT CALENDAR.

SECOND JOSE MADRONA.

I'D LIKE TO SAY THANK YOU.

WELL, THE CLERK, PLEASE CALL THE ROLL COUNCIL MEMBER MEDRANO.

YES.

COUNCIL MEMBER SHOP.

YEP.

COUNCIL MEMBER GOMEZ.

YES.

MAYOR PRO TEM ESPINOSA.

YES.

MAYOR BEAMISH.

YES.

AND IT PASSED FIVE ZERO, CORRECT? CORRECT.

I APOLOGIZE.

YES.

THE MOTION PASSES FIVE ZERO THAT'S.

OKAY.

I'M HEARING SOMEBODY IN THE BACKGROUND.

SO I DON'T, I DON'T KNOW WHAT THAT IS.

UH, THERE'S NO PUBLIC HEARINGS AT THIS TIME.

[1. STORM DRAIN MASTER PLAN REPORT That the City Council receive and file the Storm Drain Master Plan report.]

WE'LL GO TO CONSIDERATION ITEMS. ANY MEMBER OF THE AUDIENCE MAY REQUEST TO ADDRESS THE COUNCIL ON ANY CONSIDERATION ITEM PRIOR TO THE CITY COUNCIL TAKING A FINAL VOTE ON THE ITEM, THE MARYLAND, BUT I HAD BEEN ARRESTED PERSONS TO COME FORWARD TO THE PODIUM AND SPEAK, EAT ITEMS CALLED SPEAKERS, MISS LIMIT THEIR COMMENTS TO THREE MINUTES.

EACH FIRST ITEM UP IS THE STORM DRAIN MASTER PLAN REPORT.

AND I'D CALL FOR STAFF REPORT AT THIS TIME.

GOOD EVENING, MR. MAYOR MEMBERS OF THE COUNCIL.

THIS IS ELIZA CALLIE, DIRECTOR OF PUBLIC WORKS.

WE'RE PRESENTING TO YOU TONIGHT.

THE CITY'S STORM DRAIN MASTER PLAN.

THE STORM DRAIN MASTER PLAN IS IT CAPITAL INFRASTRUCTURE PLANNING DOCUMENT THAT EVALUATES THE CITY'S EXISTING STORM DRAIN SYSTEM AND IDENTIFIES POTENTIAL AREAS OF DEFICIENCY AS WELL AS TO HELP US BUDGET FOR FUTURE STORM DRAIN IMPROVEMENT PROJECTS.

TYPICALLY A STORM DRAIN MASTER PLAN IS DONE EVERY 15 TO 30 YEARS.

OUR LAST MASTER PLAN WAS DONE IN 1992.

THIS STUDY IDENTIFIED EXISTING DEFICIENT FACILITIES.

IT ALSO REVEALED THAT MOST OF OUR SYSTEM CANNOT HANDLE A 10 YEAR STORM AT 10 YEAR STORM EVENT CAN BE EXPECTED TO OCCUR ABOUT ONCE EVERY 10 YEARS.

IT ALSO RANKED OUR SYSTEM FROM HIGHER TO LOWER RISK, ACCORDING TO FAILURE AND FLOODING.

IT RECOMMENDS MAJOR STORM DRAIN SYSTEM REPLACEMENT, INCLUDING COST ESTIMATES TO UPDATE OUR SYSTEM.

THESE ARE OUR TOP FIVE LOCATIONS WITH THE HIGHEST RISK FOR OUR TOTAL OF $14 MILLION.

I'LL GO THROUGH THEM NEXT IN THE NEXT SLIDES.

THIS MAP OF THE CITY SHOWS THE EXISTING SYSTEMS. JUST TO GIVE YOU A PERSPECTIVE.

THE RED MARKINGS ARE THE IMMEDIATE, UH, THAT STORM DRAINS THAT NEED IMMEDIATE REPAIRS AND OR REPLACEMENTS.

EUCLID STREET IS OUR NUMBER ONE PRIORITY.

IT EXTENDS FROM PINEHURST ALMOST AT THE NORTHERLY PORTION OF THE CITY TO COYOTE CREEK FOR A TOTAL OF $2 MILLION.

MONTEVISTA ALSO FROM CITY LIMIT TO COYOTE CREEK IS OUR SECOND PRIORITY.

A TOTAL IS ABOUT $7 MILLION OF REPLACEMENT WALNUT STREET FROM HIGHLANDERS TO COYOTE CREEK FOR A TOTAL OF $0.6 MILLION

[00:15:01]

COLLEGE FROM STEARNS TEQUILA TO CREEK FOR ABOUT $1.7 MILLION.

AND ALSO WE HAVE RUSSELL STREET FROM CITY LIMIT TO VALLEY HOME.

THIS SYSTEM COLLAPSED DURING THE LAST STORM AND WE ARE CURRENTLY UNDER CONSTRUCTION TO REPAIR AND REPLACE THE PORTION THAT COLLAPSED ON RUSSELL.

I'M SORRY.

THE TOTAL ESTIMATE TO REPAIR OR REPLACE OUR STORM DRAIN SYSTEM IS APPROXIMATELY $47 MILLION WITH AN ANNUAL ESTIMATE FOR ABOUT $1 MILLION.

A YEAR.

GENERAL FUND IS CURRENTLY THE ONLY SOURCE OF FUNDING TO STORM DRAIN PROJECTS.

IN RECENT YEARS, THE CITY HAS HAD, HAS NOT HAD ANY SUFFICIENT FUNDS AVAILABLE TO BUDGET FOR SIGNIFICANT STORM DRAIN PROJECTS FROM JONATHAN, FROM GEN GENERAL CAPITAL FUND.

SO WE ARE IN A PHASE OF REACTIVE, NOT PROACTIVE KIND OF REPLACEMENT.

THE LAST YEAR WE HAD SEVERAL FAILURES IN THE CITY AT IMPERIAL HIGHWAY AND BEACH BOULEVARD, SIERRA VISTA STREET AND RUSSELL STREET, WHICH HAVE REQUIRED EMERGENCY REPAIRS EXCEEDING $600,000 OF UNBUDGETED GENERAL CAPITAL FUND STAFF HAS RECOMMENDED TO RECEIVE AND FILE THE STORM DRAIN MASTER PLAN AND PROVIDE DIRECTIONS FOR FUNDING REQUESTS.

THIS COMPLETES STAFF'S REPORT.

AND I'M HAPPY TO ANSWER ANY QUESTIONS.

THANK YOU.

DOES ANYBODY HAVE ANY QUESTIONS? OKAY.

THIS IS COUNCILMAN SHAW.

CAN YOU GO? THANK YOU.

BYE.

IF I THINK I HEARD YOU SAY THAT THE, UM, MANY OF THESE STORM DRAINS CANNOT HANDLE A 10 YEAR EVENT AND WHEN YOU, I, I WANT TO MAKE SURE I UNDERSTAND WHAT THAT MEANS IS THAT THIS MEAN THAT THERE WILL OVERFLOW OR, AND WE'LL KIND OF HAVE A FLOOD, MIGHT HAVE FLOOD EVENT.

ARE WE TALKING ABOUT, YOU KNOW, CHANNELS, LIKE COLLAPSING IT ON, ON THEMSELVES? OR WHAT, WHAT DOES IT, WHAT DOES A FAILURE LOOK LIKE AT A 10 YEAR FLOW? UH, LOOKS LIKE WHAT TOOK PLACE A COUPLE OF TIMES LAST YEAR WHERE YOU SEE EUCLID IS FILLED TO THE, UH, UH, THE TOP OF THE CURB AND FILL UP WATER THAT'S ABOUT WHAT THE A 10 YEAR STORM LOOKS LIKE.

SO IT OVERFLOWS THE CHAT THAT DRAIN THE CHANNEL OR WHATEVER OVERFLOWS THE, YEAH.

YES.

YEAH.

I DON'T SUPPOSE ELIAS BECAUSE THIS WATER WILL TYPICALLY JUST FLOW TO THE OCEAN.

RIGHT.

I MEAN, THERE'S NO WAY TO GET, UM, ANYTHING OUT OF THE FEDERAL GOVERNMENT OR SOMETHING THAT'S LIKE IN THE CLEAN WATER, IF THERE'S A CLEAN WATER ACT OR SOME KIND OF ENVIRONMENTAL APPROPRIATION THAT THIS WOULD NEVER BE SEEN AS AN ELIGIBLE EXPENSE, UM, DOING, DOING THIS KIND OF WORK, CORRECT.

THAT THE STORM DRAINS ARE VERY, VERY DIFFICULT TO FIND ANY KIND OF ALLOCATIONS FROM FEDERAL FUND OR EVEN STATE FUND.

OKAY.

WELL, I JUST WANTED TO ALSO THANK YOU FOR BRINGING THIS FORWARD.

YOU KNOW, THIS IS NOT, UM, PROBABLY A VERY GLAMOROUS ITEM, BUT IT'S, IT'S SORT OF OUT OF SIGHT OUT OF MIND FOR US NORMALLY, BUT WHEN YOU, YOU KNOW, UNTIL IT FAILS AND THEN WE HAVE A BIG PROBLEM.

SO IT'S, I WISH WE COULD BE ON THE PROACTIVE RATHER THAN REACTIVE SIDE.

SO THANK YOU FOR BRINGING THIS TO THE COUNCIL.

I THINK IT'S GREAT THAT WE HAVE, UM, THIS UPDATE, UH, OCCASIONALLY.

THANK YOU.

THANK YOU.

THANK YOU, JOSE.

ANYTHING I KNOW MR. MAYOR.

THANK YOU, JIM NOSER ROSE.

NO, AS WELL, JUST TO MAYOR, THANK YOU, ALI S I GUESS JUST EXPLORE THE MONEY HERE.

SO YOU'RE SAYING A MILLION A YEAR, WHICH IS, GETS US 47 YEARS AWAY ON THESE PRIORITY STREETS.

SO IF THE MONEY CAN ONLY COME OUT OF THE GENERAL FUND ONLY HAS YOUR STAFF, I GUESS YOU'VE LOOKED AT ANY AND ALL POTENTIAL OPTIONS TO FUND SOME OF THIS, I ASSUME, RIGHT? YES, WE DID.

THE, THE REALLY THE ONLY, UH, WAY TO GET FUNDING FOR THIS IS THROUGH A BOND OR MOTHER RUSE OR, UH, A DIFFICULT WAY TO GET MONEY.

THERE IS NO GRANTS OUT THERE, OR THE USE OF, UH, UH, OTTA FUND OR EVEN

[00:20:01]

GAS TAX FUND OR SB ONE FUND.

THESE ARE NOT QUALIFIED.

SO EITHER BOND OR MELLO ROOS, WE'D ACTUALLY GO OUT TO THE VOTERS, CORRECT? CORRECT.

ALL RIGHT.

THANK YOU.

ALL RIGHT, THEN I, AT THIS TIME I WOULD INVITE THE PUBLIC TO TESTIFY.

ASK QUESTIONS.

IF YOU'D GIVE US YOUR FIRST NAME, IT'D BE GREAT.

IS THERE ANYBODY ON THE LINE, BRIANNA? I'M NOT RIGHT NOW MAYOR, BUT I JUST WANT TO REMIND PEOPLE THAT IF THEY DO WANT TO SPEAK TO HIT STAR NINE ON YOUR PHONE, AND THAT WILL INDICATE THAT YOU WISH TO SPEAK DURING THE NIGHT.

THANK YOU.

THANK YOU.

THIS GIVES US ABOUT 30 SECONDS, LORD.

OKAY, MAYOR, IT'S BEEN 30 SECONDS.

ALL RIGHT, THANKS THEN I WILL CALL FOR COUNCIL DISCUSSION OR ACTION.

ANYBODY.

MR. MAYOR, I WOULD MAKE A MOTION THAT WE RECEIVE IN FILES, A STORM DRAIN DRAIN, AND MASTER PLAN REPORT.

THANK YOU.

I'LL SECOND IT THE CLERK, PLEASE CALL THE ROLL COUNCIL MEMBER WITH DRANO.

YES.

COUNCIL MEMBER SHAW.

HELLO? YES.

COUNCIL MEMBER GOMEZ.

YES.

MAYOR PRO TEM ESPINOSA.

YES.

MAYOR BEAMISH.

YES.

THEN WE THANK YOU.

NOW WE

[2. CONSIDERATION OF A CITY BALLOT MEASURE TO AUTHORIZE THE CITY COUNCIL TO ADOPT AN ORDINANCE AUTHORIZING UP TO A SIX PERCENT GROSS RECEIPTS TAX ON COMMERCIAL CANNABIS ACTIVITY AND AUTHORIZE UP TO FOUR LICENSES FOR NON-STOREFRONT (DELIVERY ONLY) RETAIL CANNABIS BUSINESSES WITHIN THE CITY Staff requests City Council provide direction on whether to place a ballot measure on the November 3, 2020, General Municipal Election authorizing a cannabis business tax on all types of commercial cannabis businesses that now or in the future may operate in the City, and authorizing the City Council to adopt an ordinance authorizing up to four licenses for non-storefront (delivery only) retail cannabis business: A. APPROVE AND ADOPT RESOLUTION NO. _____ BY A 2/3 VOTE ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, SUBMITTING TO THE VOTERS AT THE NOVEMBER 3, 2020 GENERAL MUNICIPAL ELECTION A CANNABIS BUSINESS TAX AND REGULATION MEASURE AND TAKING CERTAIN RELATED ACTIONS]

WILL GO TO ITEM TWO CONSIDERATION OF A CITY BALLOT MEASURE TO AUTHORIZE THE CITY COUNCIL TO ADOPT AN ORDINANCE AUTHORIZING UP TO A 6% GROSS RECEIPTS TAX ON COMMERCIAL CANNABIS ACTIVITY AND AUTHORIZE UP TO FOUR LICENSES FOR NON STOREFRONT DELIVERY, ONLY RETAIL CANNABIS BUSINESSES WITHIN THE CITY.

AND BEFORE I ASK FOR STAFF REPORT, I WOULD JUST MENTION TO MY COLLEAGUES HOW THIS CAME ABOUT.

I CALLED AND DISCUSSED WITH ROSE, UH, THE ISSUE ABOUT CANNABIS, BECAUSE AS WE ALL KNOW, THERE'S SOME STRONG FEELINGS ON COUNCIL ABOUT IT.

AND AS WE GOT THINKING ABOUT IT, OUR REVENUE ISSUES, UH, TAXING ISSUES, THE WHOLE SCENARIO WITH THE VIRUS AND ECONOMIC DOWNTURN, ANYTHING WE DO NOW WITH THE BUDGET ONE WAY OR THE OTHER IS MATERIALLY KIND OF AFFECT OUR SERVICES, OUR PROJECT, OUR STAFFING, WHICH IN TURN WILL AFFECT OUR COMMUNITY.

SO I THOUGHT FOR THIS SPECIFIC, UM, ISSUE, IT WOULD BE HELPFUL FOR US TO GO OUT AND JUST GAUGE TO SEE WHAT THE PUBLIC, HOW MUCH WITHOUT BOOKS SUPPORTED OR DID NOT SUPPORT ANYTHING TO DO WITH THE MARIJUANA ISSUES.

SO, UM, THAT'S HOW THIS CAME ABOUT ROSE, AND I THOUGHT IT WOULD BE GOOD FOR US TO HAVE A DISCUSSION ABOUT IT.

SO HAVING SAID THAT, I WILL ASK FOR A STAFF REPORT, GOOD EVENING, MAYOR BEAMISH MEMBERS OF THE CITY COUNCIL.

MY NAME IS ANDREW HALL.

I'M THE DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT.

UM, AS REQUESTED STAFF HAS PREPARED A DRAFT ORDINANCE FOR VOTER APPROVAL THAT WOULD AUTHORIZE THE CITY COUNCIL TO IMPOSE A GROCERY SEATS BUSINESS TAX OF UP TO 6% ON ALL COMMERCIAL CANNABIS BUSINESS TYPES CURRENTLY, OR SUBSEQUENTLY APPROVED TO BE LICENSED WITHIN THE CITY, AS WELL AS AUTHORIZING UP TO FOUR LICENSES FOR NON STOREFRONT DELIVERY ONLY OF CANNABIS, UH, BUSINESSES.

IF THE PROPOSED BALLOT MEASURE IS APPROVED TO BE PLACED ON THE BALLOT TONIGHT BY TWO THIRDS, CITY COUNCIL VOTE OR 44 VOTES, AND IS THEN SUBSEQUENTLY APPROVED BY THE VOTERS BY A MAJORITY VOTE, WHICH WOULD BE 50% PLUS ONE STAFF WOULD RETURN TO THE CITY COUNCIL WITH ORDINANCES, PROPOSING INITIAL RATES FOR EACH TYPE OF COMMERCIAL CANNABIS BUSINESS AND AMENDING CHAPTER 18 OF THE ZONING CODE TO ALLOW UP TO FOUR LICENSES FOR NON STOREFRONT DELIVERY, RETAIL CANNABIS BUSINESSES, A CANNABIS BUSINESS LICENSE TAX WOULD NOT BE A DIRECT TAX ON RESIDENTS OF LAHABRA OR THEIR PROPERTY, BUT WOULD BE PAID BY CANNABIS BUSINESSES

[00:25:01]

THAT ALREADY OPERATE AND MAY OPERATE IN THE FUTURE WITHIN THE CITY AND OBLIGATE THOSE CANNABIS BUSINESSES TO PAY FOR THEIR FAIR SHARE OF CITY SERVICES.

THE PROPOSED BALLOT MEASURE WOULD PROVIDE THE CITY COUNCIL WITH THE AUTHORITY TO SET CANNABIS TAX RATES AT ANY RATE UP TO, BUT NOT IN EXCESS OF 6% ON ANY PERMITTED COMMERCIAL CANNABIS ACTIVITY.

UH, THIS GIVES THE COUNCIL THE FLEXIBILITY TO SET INDIVIDUAL RATES FOR VARIOUS LICENSES THAT THE STATE HAS, HAS AUTHORIZED A CERTAIN TYPES OF BUSINESSES AND LICENSES HAVE A DIFFERENT PROFIT MARGIN AND PRICE POINTS AND THEIR BUSINESS PLANS THAT WOULD, UM, UH, HAVE DIFFERENT RATES, UH, FOR THEM, FOR THEIR BUSINESSES STAFF ESTIMATES THAT THE PROPOSED TAX OF UP TO 6%, IF A PRO'S APPROVED BY THE VOTERS TO GENERATE APPROXIMATELY 1 MILLION TO 2 MILLION ANNUALLY IN ADDITIONAL GENERAL FUND REVENUE, BASED ON PROJECTIONS FOR ESTIMATED TEXT RATES OF, FOR DISTRIBUTION LICENSES, FOR TESTING LICENSES AND FOR NON STOREFRONT RETAIL DELIVERY LICENSES, THE CITY COUNCIL'S CONSIDERATION AND ACTION IS A NECESSARY AS NECESSARY REVOLUTION TO PLACE THIS MEASURE ON THE BALLOT FOR THE NOVEMBER 3RD, 2020 GENERAL MUNICIPAL ELECTION, THE ORDINANCE TO BE CONSIDERED BY THE VOTERS AS AN ATTACHMENT TO THE RESOLUTION STAFF REQUESTS THAT THE CITY COUNCIL PROVIDE DIRECTION ON WHETHER OR NOT THE PLACE A BALLOT MEASURE FOR THE NOVEMBER 3RD MUNICIPAL ELECTION AND AUTHORIZE A CANNABIS BUSINESS TAX ON ALL TYPES OF COMMERCIAL CANNABIS BUSINESSES THAT THAT ARE, UH, THAT NOW OR IN THE FUTURE MAY OPERATE IN THE CITY AND AUTHORIZE THE CITY COUNCIL TO ADOPT AN ORDINANCE AUTHORIZING UP TO FOUR LICENSES FOR NON STOREFRONT DELIVERY, RETAIL CANNABIS BUSINESSES.

THIS WILL CONCLUDE MY PRESENTATION UNLESS THERE ARE QUESTIONS ALSO ON THE LINE IS DEPUTY CITY ATTORNEY, UH, KEITH COLLINS.

OKAY, THANK YOU.

I HAVE TWO QUESTIONS AND THEN I'LL OPEN IT UP TO MY COLLEAGUES.

THE FIRST ONE IS WE HAVE COMPLETED, OR I ASSUME COMPLETED TWO DA AGREEMENTS WITH DISTRIBUTION COMPANIES.

I ASSUME IN THOSE AGREEMENTS, THERE'S A CLAUSE SAYING THAT AT SOME POINT FUTURE TIME, THIS WHAT WE'RE DOING TONIGHT MAY HAVE OCCURRED.

SO THERE IS NO PROBLEM WITH REGARDS TO THOSE CURRENT AGREEMENTS THAT WE HAVE AS FAR AS LIABILITY OR NOTICE, OR THEY CAN TRANSITION OVER TO WHATEVER TAX RATE, CORRECT.

CORRECT.

IF THE BALLOT MEASURE IS APPROVED, THEN IT WOULD TAKE PRECEDENT OVER THE, THE EXISTING DEVELOPMENT AGREEMENTS AND THAT WAS IN THERE.

AND THAT WAS IN THEIR AGREEMENT THAT THAT WOULD BE POTENTIALLY A THING THAT COULD HAPPEN.

RIGHT? CORRECT.

OKAY.

AND THE SECOND QUESTION I HAVE IS I WAS LOOKING AT THE DIFFERENT BUSINESS MODELS.

UM, I WAS THINKING 6%, A RANGE OF ZERO TO 6% IS PROBABLY CORRECT FOR HOME DELIVERY AND OTHER TYPES OF BUSINESSES.

WHEN YOU LOOK AT DISTRIBUTION AND THE LABS, WHAT PERCENTAGE OF OTHER CITIES CHARGED AND WOULD YOUR RECOMMENDATION BE DIFFERENT FOR THOSE TWO SPECIFIC BUSINESSES? BECAUSE OBVIOUSLY THEIR MARGINS ARE A LOT NARROWER THAN THE OTHER TYPE OF MARIJUANA BUSINESSES.

YES.

UH, UH, TESTING AND DISTRIBUTION BUSINESSES DO HAVE DIFFERENT, UH, BUSINESS MODELS AND PROFIT MARGINS.

THEY HAVE LARGE, UH, LESS OVERHEAD.

UM, WHAT WE'VE BEEN SEEING IN THE MARKET IS PROBABLY, UM, A TAX RATE NOT TO EXCEED TWO AND A HALF PERCENT.

AND THAT IS WHAT'S THE LOW AND HIGH END OF THAT.

IN OTHER WORDS, WE HAVE THE CITY OR THAT'S, YEAH, WE'VE SEEN CITIES AS LOW AS 1%, BUT THE GENERAL RANGE IS ANYWHERE FROM 1.5 TO 2.5%, IS IT? I ASSUME THAT'S PERMISSIBLE THAT WE COULD SPLIT THIS WHERE, UM, IF COUNCIL CHOSE, WE COULD DO DISTRIBUTION ALL ABS FROM ZERO TO 2.5, BECAUSE

[00:30:01]

THAT GIVES 'EM COMFORT, I SUPPOSE, TO THE EXISTING BUSINESSES WE HAVE THAT THEY KNOW THEY CAN COMPETE.

SO THERE'S NOT AN ISSUE WITH SPLITTING THIS, BETWEEN THOSE TWO BUSINESSES ON ALL OTHERS.

IT WOULD BE ZERO TO 6%, CORRECT? CORRECT.

OKAY.

ALL RIGHT.

THANK YOU.

SO JOSE, ANYTHING? YEAH.

I'M SORRY.

ARE YOU THERE, JOSE? HELLO? THERE YOU GO.

DID YOU HAVE ANY QUESTIONS? YES.

THANK YOU.

HI, YOU'RE CUTTING OUT ON ME.

CAN YOU HEAR HIM, LORI? CAN YOU HEAR ME? I CAN HEAR YOU NOW.

OKAY.

ARE OUR, THESE ARE OUR, UH, OUR COMMENTS OR ARE THESE, UH, QUESTIONS FOR STAFF? THIS IS QUESTIONS FOR STAFF.

NO QUESTIONS AT THIS TIME, MR. MAYOR.

THANK YOU.

THANK YOU, TIM.

I JUST WANT TO MAKE SURE IT'S CRYSTAL CLEAR TO EVERYBODY HOW THIS TAX WOULD WORK.

I CAN IMAGINE IF SOMEONE WAS LISTENING, THINKING, WELL, 6%, THAT DOESN'T SOUND LIKE VERY MUCH, BUT JUST SO ANDREW, CAN YOU CLARIFY HOW THIS TAX WOULD WORK? I'M AFRAID THE IMPRESSION MIGHT BE LEFT THAT IT'S 6% OF THEIR PROFIT, WHICH OF COURSE IS NOT CORRECT.

OKAY.

COULD YOU JUST CLARIFY EXACTLY HOW, HOW THAT WOULD, YOU KNOW, BREAK OUT AND PENCIL OUT AS FAR AS HOW MUCH THERAPY? UH, WE WOULD BE TOXIC AND ANDREW, JUST TO ADD ON ALSO EXPLAINED A LOT OF THIS WOULD BE ON TOP OF THE CURRENT CITY SALES TAX AND TRANSACTION TAX ON SOME OF THIS.

SURE.

UM, THE, THE CANNABIS TAX WOULD BE, UM, GIVE THE COUNCIL THE FLEXIBILITY AT A SET OF TAX RATE UP TO 6% OF GROSS RECEIPTS, UM, ON SALES OF CANNABIS RELATED BUSINESSES.

UM, AS WE, UH, PROPOSE THAT 6%, WE RECOGNIZE THAT, UM, THE STATE IS ALSO TAXING CANNABIS BUSINESSES TO THE TUNE OF ABOUT 15.

UM, ORANGE COUNTY ITSELF HAS A SALES TAX OF ABOUT EIGHT AND A QUARTER PERCENT, UH, WHICH WOULD APPLY TO RETAIL, UH, BUSINESSES AND DELIVERY BUSINESSES.

UM, AND SO FROM A, FROM A TAXING PERSPECTIVE, CANNABIS BUSINESSES CAN ONLY ABSORB, UH, SO MUCH TAXES.

AND SO, UM, TO KIND OF REMAIN COMPETITIVE IN THE MARKETPLACE, WE TRIED TO MAKE SURE THAT, UH, THE CANNABIS BUSINESSES AS A WHOLE, WEREN'T PAYING MORE THAN 30% IN TAXES TO VARYING, UH, AGENCIES AND ENTITIES.

SO THAT'S, THAT'S HOW WE ARRIVED AT THE, UH, 6%.

YEAH.

DOES THAT ANSWER YOUR QUESTION? UH, COUNCIL MEMBER SHOP? YEAH, I'VE ALSO, I APPRECIATE, UH, TOM JUMPING IN THERE AND, YOU KNOW, CLARIFYING THOSE OTHER TAXES, BUT IF, YOU KNOW, SO IF THEY SELL A MILLION DOLLARS WORTH OF A PRODUCT, LET'S SAY IN A YEAR, I'M GOING TO SCREW UP MY MATH HERE, BUT 6% WOULD BE, UM, $60,000.

RIGHT.

SO THAT'S THAT THEN THEY, THAT'S NOT A PROFIT IF THEY HAD A MILLION DOLLARS IN SALES, BUT THEN THEY HAVE TO HAVE PAID FOR THE PRODUCT, PAID FOR THEIR EMPLOYEES, PAID FOR THEIR, EVERYTHING THAT GOES INTO IT.

SO THEY, BUT THEY, THEY WERE, THEY WOULD SEND THE CITY A CHECK FOR $60,000, LET'S SAY, BUT THEY STILL HAVE ALL THOSE BILLS.

SO THAT THE PROFIT MARGIN THAT I JUST WANTED TO MAKE SURE IT WAS VERY CLEAR TO EVERYBODY.

IT'S NOT A TAX ON THE PROFIT, IT'S A TAX THAT'S ON THIS GROSS SALE.

SO IT BECOMES A VERY BIG NUMBER VERY QUICKLY ABOUT, UH, SO I DIDN'T WANT TO LEAVE THAT, UH, PRESS, I WILL HAVE MORE COMMENTS, BUT I DON'T HAVE ANY MORE QUESTIONS MR. MANAGER.

SO ANDREW, SO THAT'S WHERE, AND WHY I ASKED YOU ABOUT THE OTHER CITIES, BECAUSE THEY'RE PROBABLY JUGGLING THOSE PERCENTAGES.

CAUSE THEY'RE FINDING BECAUSE OF $2, THE TAXES, UH, YOU CAN GET TOO BIG, A NUMBER WHICH BASICALLY DRIVES THEM OUT OF BUSINESS OR OUT OF THE TOWN, CORRECT? CORRECT.

UH, SOME CITIES THAT HAVE ADOPTED, UH, HIGHER TAX

[00:35:01]

RATES, UM, HAVE BEEN STRUGGLING, ATTRACTING, UH, BUSINESSES TO, TO COME TO THEIR COMMUNITIES.

UM, AND SO THERE'S A BALANCING ACT OF TRYING TO REMAIN COMPETITIVE IN THE MARKETPLACE AND, UH, UH, TRYING TO JUST MAKE IT WORK FOR THE BUSINESS AND FOR, FOR EACH COMMUNITY.

THANK YOU, JIM.

ANY COMMENTS? QUESTIONS, QUESTIONS.

THANK YOU.

ROSE, JUST TO CONFIRM, UM, ANDREW, THIS IS NOT A TAX THAT THE RESIDENT MEMBERS WILL PAY ON THE TAP CITY.

IT IS A ATTACKS THAT WILL BE PAID BY THE CANNABIS BUSINESS.

YES, THAT'S CORRECT.

ALL RIGHT.

THANK YOU.

THAT WOULD BE IT.

OKAY.

THANKS.

AND AT THIS TIME I'D INVITE THE PUBLIC TO TESTIFY AND, UH, PLEASE GIVE YOUR NAME.

IF YOU'D LIKE, THIS IS LIVE.

YOU CAN JUST, UH, GIVE US YOUR NAME.

I GUESS, LAURIE, ANYBODY ON THE LINE WANTING TO ADDRESS US.

THERE ARE A COUPLE OF PEOPLE ON THE LINE, BUT BEFORE WE GO TO THEM, I JUST WANTED TO STATE THAT THERE WERE THREE EMAILS RECEIVED, TWO ON SUPPORT AND ONE ASKING TO HONOR CONTRACTUAL AGREEMENTS THAT WERE EMAILED TO COUNSEL PRIOR TO THE MEETING.

ALL RIGHT.

THANK YOU.

SO NOW THAT'S A PART OF THE RECORD.

OKAY.

FIRST PERSON UP.

OKAY.

MAYOR, I'M GOING TO RELEASE A CALLERS IN THE ORDER THAT THEY, UM, RAISED THEIR HAND.

I WILL RELEASE THE FIRST COLOR NOW.

OKAY.

THANK YOU.

HELLO, MAYOR AND COUNCIL.

THIS IS DANA CISNEROS.

I AM THE ATTORNEY FOR CANADA, AMERICA, LLC HAS BEEN BEFORE YOU A NUMBER OF TIMES.

UM, I'D LIKE TO QUICKLY INQUIRE FROM THE CLERKING COUNCIL, WHETHER OR NOT I HAVE A THREE MINUTE TIME LIMIT SO THAT I CAN PROPERLY PHRASE MY, UM, COMMENTS.

UH, THIS IS, UH, CONSIDER YES, THREE MINUTES.

OKAY.

HERE I GO.

QUICKLY REAL TIME REGARDING THE DEVELOPMENT AGREEMENTS.

AS YOU KNOW, CANADA, AMERICA IS ONE OF YOUR OPERATORS WITHIN THE CITY.

IT IS A DISTRIBUTOR AND IT IS SUBJECT TO A DEVELOPMENT AGREEMENT.

WE WERE JUST HEARTENED TO SEE THE CITY WANTED TO IMPOSE UP TO A 6% TAX ON CANADA AMERICA WHEN THIS VERY SAME COUNCIL JUST RECENTLY APPROVED AND EXECUTED THE DEVELOPMENT AGREEMENT, AGREEING TO A MUCH DIFFERENT TERMS THAN WHAT WOULD BE IMPOSED BY 6% OR EVEN A 1% TAX ON REVENUES, UM, TO ECHO, UH, COUNCIL MEMBER SHAW'S COMMENTS.

THIS IS INDEED A TAX ON GROSS REVENUE AND GROSS RECEIPTS.

IT IS NOT A TAX ON PROFITS.

CANNABIS BUSINESSES ALREADY SUFFER GREATLY FROM ALL OF THE TAXES THAT ARE IMPOSED ON THEM, INCLUDING BUT NOT LIMITED TO A FEDERAL TAX LAW, UH, TWO 80 E UH, THAT PROHIBITS THEM FROM DEDUCTING MOST BUSINESS EXPENSES.

IT WOULD ALSO PROHIBIT THEM FROM DEDUCTING THIS LOCAL TAX.

UM, SO ALL OF THIS DRIVES DIRECTLY INTO THEIR BOTTOM LINE.

UM, CANADA AMERICA DID NEGOTIATE FOR THE DEVELOPMENT AGREEMENT FEES THAT IT COMMITTED TO PAYING.

AND IN ADDITION TO THOSE, UM, CONTRACTUAL FEES, IT ALSO AGREED TO PAY A, UH, COMMUNITY BENEFIT C UM, AS WELL AS CONTRIBUTE IN PERSON MAN HOURS OR, OR, OR, OR EMPLOYEE HOURS FOR VOLUNTEER SERVICE TO BECOME AN INTEGRAL PART OF THE COMMUNITY.

UM, CANADA, AMERICA WOULD STILL BE REQUIRED TO MAKE THE COMMUNITY BENEFIT PAYMENTS AND REQUIRED TO HAVE ITS EMPLOYEES VOTED FOR FREE, UM, ON, ON COMMUNITY PROJECTS.

UH, IN SPITE OF THIS TEXT ONLY THE ONLY THE CONTRACTUAL BENEFITS ARE OFFSET BY A TAX PAYMENT.

AGAIN, THAT TAX PAYMENT, IF YOU PENCIL IT OUT AND I DID PENCIL IT OUT FOR YOU IN SEVERAL EXAMPLES IN THE EMAIL THAT I SENT THAT WAS JUST REFERENCED EARLIER, UM, THOSE PAYMENTS ARE ALL REFERENCED.

UH, THOSE NUMBERS ARE ALL REFERENCED THERE AND WE ARE TALKING ABOUT AN INCREASE ON THE LOW END OF 25% ON THE HIGH END OF OVER 91% TO WHAT WAS ORIGINALLY AGREED TO BY THIS COUNCIL, CANADA, AMERICA LIKELY WOULD HAVE MADE A DECISION NOT TO PARTICIPATE IN THIS CITY'S CANNABIS ACTIVITIES.

HAD IT KNOWN THAT THIS WOULD BE THE TAX RATE THAT IT WOULD BE FACING.

AND I WOULD EXPECT THAT MOST OPERATORS WOULD SAY THE SAME THING.

I CAN SPEAK FROM PERSONAL EXPERIENCE AND TELLING YOU THAT MY CLIENT JUST PURCHASED A DISTRIBUTION FACILITY FOR FREE IN SANTA ANA, BECAUSE THE TAX RATE, THERE IS 6%.

WE EXPECT TO SEE THAT REDUCED.

I ALSO PROVIDED YOU WITH SEVERAL EXAMPLES WHERE SAN BERNARDINO IS AT 2% COSTA MESA, JUST WELL IT'S TAX BACK LAST MONTH TO 1% FROM 6%.

THERE'S A PRESENTATION FROM HDL THAT SURVEYS THE VARIOUS NUMBERS.

UM, AND THEN PALM SPRINGS IS AT 0%.

THE CITY OF VISTA IN SAN DIEGO IS ALSO AT 2%.

STANTON IS UP TO 4%, BUT ITS PROGRAM HAS NOT YET BEEN IMPLEMENTED.

I ALSO PROVIDED

[00:40:01]

YOU WITH INFORMATION THAT SHOWS THAT TAX IS APPLIED ON THE SUPPLY CHAIN END UP IN A PYRAMID SCHEME FOR TAXATION, AND IT ALL GETS ADDED TO THE CONSUMER.

SO WHILE IT MIGHT NOT BE ON THE PROPERTY OWNERS, IT WILL CERTAINLY BE ON THE RESIDENCE OF, UH, THE TAX WILL BE IMPOSED ON THE RESIDENTS OF LAHABRA BECAUSE BUSINESSES HAVE NO CHOICE, BUT TO PASS THAT TAX COST OFF TO THE CONSUMER, UM, I WOULD LIKE TO ALSO STATE THAT YOU GUYS ARE NOT CONSIDERING THE FACT THAT THERE IS ALREADY A CULTIVATION TALKS IN THE SUPPLY CHAIN THAT SUPPLIES TO THE CULTIVATORS, THAT TAX WAS INCREASED THIS YEAR AS WELL.

UM, AND WITH THAT, I THANK YOU FOR YOUR TIME AND HOPE THAT YOU WILL CONSIDER REMOVING DISTRIBUTION FROM THE TAX MEASURE, UM, AS IT DOES NOT SERVE TO BENEFIT, UH, REALLY ANYBODY IN THE COMMUNITY.

AND IT CERTAINLY DOESN'T STAND TO BENEFIT THE BUSINESSES THAT YOU HAVE ALREADY AGREED CONTRACTUALLY TO, UM, WORK WITH IN THE CITY.

THANK YOU.

THANK YOU.

OKAY, MR. MAYOR, I'M RELEASING THE NEXT CALLER NOW.

ALRIGHT, THANK YOU.

GOOD EVENING, MAYOR AND COUNCIL.

MY NAME IS ANTHONY AND I OWN CANADA AMERICA.

ONE OF THE LICENSED CANNABIS DISTRIBUTORS IN THE HOMBRE.

I MIGHT CONSIDER THE FACT THAT MY BUSINESS HAS BEEN WORKING TO DELBERT GENTLY TO COMPLY WITH EVERY CONDITION OF APPROVAL AND EVERY REQUIREMENT IMPOSED BY THE CITY OF LABA FOR CANNABIS DISTRIBUTORS.

WE HAVE FACED SEVERAL CHALLENGES OVER THE PAST TWO YEARS, BUT WE'RE NOW WEEKS AWAY FROM OPENING OUR DOORS BECAUSE OF YOU, BECAUSE OF THIS, YOU ALL AGREE TO THE DEVELOPMENT AGREEMENTS.

WE BOTH SIGNED LAST YEAR, THAT CAN AMERICA WITH PAY SET, GRADUATED FEET.

HE'S RECOGNIZING THAT AS A YOUNG STARTUP ENTREPRENEUR, HOW TO NEED TIME TO GET THE BUSINESS GOING.

ONCE WE OPENED OUR DOORS AND POSING A TAX AT THIS POINT WILL BE DETRIMENTAL TO MY OVERALL BUSINESS MODEL SINCE ALL OF MY PROJECTIONS AND BUDGETS ARE BASED OFF THE CONTRACTUAL AGREEMENTS WITH THE CITY.

I UNDERSTAND THAT THE TAX LANGUAGE IS UP TO 6%, BUT THAT DOES NOT MEAN THAT IT WILL BE LESS THAN 6% IF APPROVED BY THE VOTERS, THE TAX AT THIS RATE WOULD BE LIKELY TO BREAK MY BUSINESS.

MY ATTORNEY WROTE, I COULD TELL THE ANALYSTS FOR YOU FOR YOUR CONSIDERATION SHOWING NOT ONLY WHAT THE DOLLARS AND CENTS OF THIS MEASURE MEAN TO CANADA AMERICA, BUT ALSO SHOWING THE GENERAL TREND ACROSS SOUTHERN CALIFORNIA TO REDUCE OR ELIMINATE TAXES ON DISTRIBUTORS AND THE SUPPLIERS ACROSS THE BOARD.

WE UNDERSTAND FROM OUR CONVERSATION WITH THE CITY STAFF THAT HAVE HIGH TAX ON DISTRIBUTION IS UNLIKELY.

HOWEVER, GIVEN THAT THIS IS AN ELECTION YEAR, I CANNOT RELY ON ACCIDENT.

THEN THE COUNCIL, I DO NOT KNOW.

I DO KNOW THAT TO BE AT THE RISK OF, FOR SETTING DOWN MY BUSINESS LESS THAN A YEAR AFTER IT OPENS.

IF THERE'S A CHANGE IN THE COUNCIL THAT WOULD SAY THE HIGH TAX RATE TO PENALIZE CANNABIS BUSINESSES, OR TO CHEER US FROM WORKING IN THE CITY.

I WANT YOUR MIND, THIS IS NOT MY STRONG COMMITMENT TO EMPLOYING LOCAL, THE HUB OF RESIDENCE.

I MADE THIS COMMITMENT IN 2018 BEFORE THE COVID OUTBREAK.

AND I THINK IT IS ALL THE MORE IMPORTANT THAT WE KEEP OUR BUSINESSES AFLOAT AND EMPLOYING LAHABRA RESIDENTS.

WE ALSO STAND BY OUR COMMITMENT TO PROVIDE ADDITIONAL FUNDING TO LOCAL NONPROFITS, TO CONTRIBUTING VOLUNTEER HOURS, TO SUPPORT THE CITY AND ITS VARIOUS PROGRAMS. WE ASKED THAT TONIGHT, YOU SIMPLY ELIMINATE REFERENCE TO DISTRIBUTORS AND THE TAX MEASURE AS FOR THE RETAIL TAX.

AS YOU KNOW, CANADA, AMERICA STRONGLY SUPPORTS OPEN DELIVERY, ONLY RETAIL OPPORTUNITIES IN LAHABRA WHERE HE GO TO SEE WHAT THE VOTERS WILL DO ON THE BALLOT.

EVERY INDICATION SHE DOES THAT WE DELIVERED IT.

ONLY RETAIL TAX WOULD BE WIDELY SUPPORTED BY THE VOTERS IN THE HAGIA.

THANK YOU FOR YOUR CAREFUL CONSIDERATION.

MY ATTORNEY AND I WILL BE ON THE CALL FOR THE REMAINDER OF THIS ITEM.

AND WE'RE HAPPY TO ENGAGE IN ANY DISCUSSION ON THIS IMPORTANT ISSUE.

THANK