* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [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 YOU. IS THERE ANYONE ELSE FAMOUS? YES, WE HAVE ONE MORE CALLER. I WILL UNMUTE THEM. NOW WE DID HAVE A FEW CALLERS JOIN RECENTLY, SO I WOULD JUST LIKE TO REMIND THEM IF THEY WISH TO SPEAK, TO HIT STAR NINE ON THEIR PHONE TO RAISE THEIR HAND. UM, THE COLOR IS UN-MUTED NOW. THANK YOU. ALRIGHTY. MY NAME IS MARTHA LEONARD. CAN YOU HEAR ME? I BELIEVE YOU CAN. HI. GOOD, GOOD EVENING. MY NAME IS MARTHA LEONARD AND I JUST WANTED TO SAY THAT I WOULD VERY MUCH LIKE TO SEE THIS A MEASURE PUT ON THE BALLOT AND, AND PUT TO THE VOTERS AS I WAS PART OF THE, UM, AD HOC FISCAL REVIEW COMMITTEE AND WE EXPLORED AND TALKED ABOUT CANNABIS, PRETTY MUCH EVERYTHING, BUT STOREFRONT AS A WAY TO GENERATE REVENUE FOR LAHABRA BEFORE WE GO TO A STRAIGHT TAX THAT WOULD AFFECT EVERYONE. THIS IS ONE WAY THAT WE THOUGHT WOULD ALLEVIATE OUR PAINS. SO I, I STRONGLY URGE YOU TO PUT THIS ON THE BALLOT SO EVERYBODY CAN HAVE A LOOK AT IT. THAT'S ALL. THANK YOU. THANK YOU. ANYONE ELSE? [00:45:03] THERE ARE NO OTHER COLORS ON THE LINE. WISHING TO SPEAK, MR. MAYOR. ALL RIGHT, WELL, LET'S GIVE HIM 30 SECONDS. OKAY. I'VE GOT IT. THE TIMER RUNNING. ALRIGHTY. MAYOR. IT'S BEEN 30 SECONDS. ALL RIGHT, THANK YOU. THEN I WILL CALL HER COUNCIL DISCUSSION AND ACTION. AND I'VE GOT A COUPLE OF QUESTIONS AGAIN FOR STAFF. I GUESS THE FIRST ONE WOULD GO TO OUR CITY ATTORNEY WITH REGARDS TO THE, YOU KNOW, I MENTIONED THIS EARLIER WITH ANDREW, BUT I WOULD LIKE COUNCIL'S OPINION ON THE DA AGREEMENTS THAT WE HAVE, THIS WOULD AFFECT THOSE AGREEMENTS. OBVIOUSLY. ARE WE IN AN OKAY POSITION TO, TO CHANGE WHAT'S INHERENTLY IN THEIR DA AGREEMENTS FROM WHAT IT IS TO ATTACKS MAYOR. THIS IS KEITH CALLING CITY ATTORNEY'S OFFICE. CAN YOU HEAR ME OKAY. I CAN. THANK YOU. SO TO ANSWER YOUR QUESTION, UH, IF THIS MEASURE IS PUT TO THE VOTERS, IT WOULDN'T CHANGE ANYTHING IN THE DEVELOPMENT AGREEMENTS. UH, THE DEVELOPMENT AGREEMENTS CONTEMPLATED THIS VERY SCENARIO AND THERE WAS LANGUAGE THAT THE DEVELOPERS AGREE TO. WHEREAS, WHEREAS IF THE VOTERS ULTIMATELY DID APPROVE A TAX THAT THEIR CONTRACTUAL PAYMENTS, UM, WOULD BE REPLACED BY WHATEVER THAT TAX IS. SO NOTHING IN THE DEVELOPMENT AGREEMENT WOULD CHANGE. THE DEVELOPMENT AGREEMENT WAS WRITTEN SPECIFICALLY WITH THIS ESSENTIAL OUTCOME IN MIND. OKAY. THANK YOU THEN I GUESS, UH, ANOTHER QUESTION DISCUSSION FOR ANDREW. SO WE CHATTED BRIEFLY ABOUT, ALRIGHT, YOU KNOW, YOU AND I CHATTED ABOUT POTENTIALLY SPLITTING THIS BETWEEN DISTRIBUTION AND LAB BUSINESSES AT ONE RATE AND ALL OTHERS THAT A DIFFERENT RATES. SO THE ALL OTHERS WOULD BE, WHICH INCLUDES THE UNCLE EVERY ZERO TO 6%. SO LET'S SPEAK SPECIFICALLY TO THE DISTRIBUTION BUSINESS MODEL. AND I THINK YOU WERE SAYING ZERO, SAY TO 2.5 IS I GUESS, A MORE REASONABLE RANGE. HOW DO YOU FORESEE IF THIS WERE VOTED ON AND PASSED BY THE COMMUNITY, HOW WOULD YOU DETERMINE WHAT THE RATE SHOULD BE WHEN YOU WOULD COME BACK TO COUNCIL? BECAUSE AT THAT TIME IS WHEN WE WOULD ACTUALLY ESTABLISH THE PERCENTAGE. AND I ASSUME WITHIN THAT RANGE, WE CAN LOWER IT OR INCREASE IT TO THE CAP WITHOUT ANOTHER VOTER VOTE. CORRECT. THAT'S CORRECT. BASED ON WHAT I'VE SEEN OF OTHER CITIES, TAX RATES AND KIND OF, UH, BEING COMPETITIVE IN THE MARKET. UM, AT THIS POINT I WOULD, UH, ADVISE THE COUNCIL TO, UH, YOU KNOW, OR WHEN WE BRING THIS FORWARD, NOT, NOT TO HAVE A TAX RATE ABOVE 2.5. SO WE WOULD PROPOSE SOMETHING SOMEWHERE BETWEEN, UM, ONE AND A HALF PERCENT TO TWO AND A HALF PERCENT, UM, AHEAD. I'M SORRY. I, I WOULDN'T, YOU KNOW, THE SET THE RIGHT TODAY, YOU KNOW, DON'T, YOU DON'T KNOW WHAT THE MARKET RATE IS SIX MONTHS FROM NOW OR AFTER THE ELECTION PASSES. AND SO WE DO A SURVEY OF CITIES. OKAY. SAY IT BEST PASS. THEN. DID YOU CONTEMPLATE DISCUSSING THE RATES WITH THE DISTRIBUTION BUSINESSES OR STAFF WITH SURVEY OTHER CITIES, OR DO YOU EVEN HAVE A PROCESS TO DETERMINE IT SHOULD BE X PERCENT? W WE WOULD PROBABLY DEVELOP SOME TYPE OF, UH, METHODOLOGY, UM, IF THE COUNCIL WOULD LIKE US TO ENGAGE IN, IN DISCUSSING WITH THE CANNABIS BUSINESSES, I, I WOULD ANTICIPATE MANY OF THE CANNABIS BUSINESSES THAT WE HAVE WOULD, WOULD, UM, LOBBY FOR THE LOWEST RATE POSSIBLE. AND SO IT, ULTIMATELY WE WOULD SERVE IT UP TO THE COUNCIL AND PROVIDE A BASIS FOR HOW WE ARRIVED AT, UH, THE FINAL TAX RATE. RIGHT. I GUESS I WOULD BE LOOKING FOR A REASONABLE RIGHT. WHATEVER THAT WOULD BE. OKAY. JOSE. OH YES. MR. MAYOR AND, UH, AND CITY COUNCIL AND, UH, MRS. NARROWS, MR. DESIMONE. [00:50:01] AND I THINK IT WAS MS. LEONARD THAT CALLED AS WELL. UM, I I'VE GONE ON THE RECORD MANY, A TIMES AS FAR AS MY OPPOSITION TO MARIJUANA, UH, BEING A POLICE OFFICER. UM, AND, UH, AND THAT'S STILL STANDS, HOWEVER, UH, IN THE INTEREST OF, UH, OF PUTTING THIS OUT TO OUR RESIDENTS AND LETTING THEM DECIDE, I, I WILL, UH, I WILL SUPPORT THIS. UM, AND THIS IS, UH, NOT TO INDICATE THAT I AM IN ANY WAY ADVOCATING FOR MARIJUANA AT ALL. I THINK, UH, I THINK THE THING TO DO HERE IS TO ACTUALLY DO DEMOCRACY OF SERVICE ACTUALLY, AND LET THE PEOPLE DECIDE, LET THEM FIGURE OUT IF THEY WANT MARIJUANA IN OUR CITY AND IF THEY WANT IT TAXED, UM, I'LL LEAVE IT AT THAT. UH, AND, UH, AND I'LL JUST GO ON THE RECORD ONE MORE TIME. I AM NOT ADVOCATING FOR MARIJUANA, BUT I DO, UH, I DO FEEL THAT, UH, THE PEOPLE OF THE CITY OF LAHABRA SHOULD DECIDE THIS. THANK YOU, MR. MAYOR. THANK YOU, JOSE. I AGREE BECAUSE AS YOU CAN, WELL DO IS VOTE NO ON IT WHEN IT'S OUT THERE FOR THE VOTE, IF IT'S WE ADOPT THIS. SO I APPRECIATE THE SUPPORT ON THAT, TIM. THANKS. YOU MAY, OR BMS, UM, YOU KNOW, LISTENING TO THE CALLERS. I HAD JUST BEEN THINKING, YOU KNOW, I, UH, I UNDERSTAND THAT WE HAVE THE ABILITY TO, UH, WIPE OUT THE DEVELOPMENT AGREEMENTS THAT HAVE BEEN NEGOTIATED AND JUST TO IMPOSE THIS TAX. I, I GUESS THAT'S TECHNICALLY LEGALLY TRUE. I JUST FEEL LIKE I'VE MY CONCERN IS I JUST DON'T KNOW IF THAT'S THE WAY WE SHOULD BE DOING BUSINESS. I MEAN, WITH PEOPLE, WE SHOULD BE DOING OUR BEST TO BE BUSINESS FRIENDLY. AND I, I FEEL VERY, UM, SYMPATHETIC TO THE CALLER WHO INDICATED HE WAS A FEW WEEKS AWAY FROM OPENING AND WE'RE SUDDENLY REWRITING THE TERMS OF HIS DEVELOPMENT AGREEMENTS, UM, AT THE 11TH HOUR ON HIM. SO I'M JUST STRUGGLING HERE, TOM, WITH WHAT, WHAT THE RIGHT THING TO DO IS, AND I JUST WONDERING IF THERE, I THINK, I JUST FEEL LIKE IT WOULD BE A MORE FAIR APPROACH IF WE COULD, SOMEHOW I DON'T KNOW, GRANDFATHER IN THE, UH, DEVELOPMENT AGREEMENTS THAT WERE NEGOTIATED IN GOOD FAITH, UM, FOR A TIME, AT LEAST IS, IS THAT WITHOUT WOULD BE LEGALLY POSSIBLE, KEITH? YEAH, NO COUNCIL MEMBERS SHAW, WE CAN'T SELECTIVELY IMPOSE A TAX ON CERTAIN BUSINESSES AND EXEMPT, UH, OTHERS THAT THAT'S NOT SOMETHING THAT WE WOULD BE PERMISSIBLE. YEAH. WELL, COULD WE JUST DROP THE TAX FROM DISTRICT DISTRIBUTION ALTOGETHER FROM THIS, FROM THIS INITIATIVE? AND THEN WE COULD MOVE FORWARD WITH THIS KEEPING THE DEVELOPMENT AGREEMENTS WE HAVE IN PLACE, BUT THE INITIATIVE WOULD ONLY APPLY TO A TESTING LAB AND RETAIL DELIVERY AND, AND CULTIVATE ANOTHER USES. RIGHT. WHAT ELSE DO WE HAVE IN THERE? CULTIVATION, UM, MANUFACTURING OTHER USES WERE IN THERE MINUS STOREFRONT DISPENSARY, RIGHT? UM, THAT WAS THE ONLY USE THAT WAS NOT GOING TO BE INCLUDED. THE ONLY EXTRA THING IT WOULD BE WOULD BE THE HOME DELIVERY AS WE'RE VOTING ON THAT. ANY OTHER BUSINESS SHOULD BE RETAIL SHOPS. IF SOME FUTURE COUNCIL, 10 YEARS FROM NOW, I WANTED TO BRING IN A RETAIL SHOP, THEN THEY WOULD BE TAXED AT WHATEVER RATE, WHICH IS PROBABLY THE 6%, BUT WE'RE NOT CONTEMPLATING BRINGING IN THE MANUFACTURER OR THE GROWTH THING OR A STOREFRONT OPERATION NOW. SO THIS IS SPECIFIC TO DISTRIBUTION LABS AND HOME DELIVERY. WELL, I'M, I'M CURIOUS WHAT MY COLLEAGUES THINK. I, I JUST FEEL LIKE I'M HITTING THEM, YOU KNOW, AFTER THEY'VE NEGOTIATED THE DEVELOPMENT AGREEMENTS AND COMING BACK AND SAYING, OOPS, NEVERMIND, WE'RE GOING TO MULTIPLY THAT BY FIVE OR FOUR OR FIVE, BUT I MEAN, IT'S LITERALLY FOUR OR FIVE TIMES THE TAX THEY WOULD HAVE TO PAY. THAT'S PRETTY ONEROUS. AND I JUST DON'T KNOW THAT THAT WOULD BE THE WAY WE CONDUCT BUSINESS WITH, UH, WITH OUR BUSINESS COMMUNITY. WHO'S COMING IN TO NEGOTIATE WITH OUR STAFF OVER, OVER A LONG PERIOD OF TIME. I MEAN, THIS WAS NOT DONE DONE QUICKLY AND I REALIZE IT'S LEGALLY APPLY A POSSIBLE. I JUST DON'T KNOW IF IT'S A GOOD PRACTICE FOR US. SO I WOULD BE OPEN TO MAYBE JUST, UM, DROPPING DISTRIBUTION, UH, FROM THE INITIATIVE SINCE WE'VE KIND OF ALREADY GOTTEN INTO THAT BUSINESS AND NOW IT WOULD INVOLVE REWRITING THE RULES FOR THEM. SO THOSE ARE MY REQUIREMENTS FOR NOW TIME, I THINK 10. AND THEN I GUESS I'LL HAVE TO ASK EITHER COUNSELOR ANDREW ABOUT THIS, BUT THAT'S WHY I APPROACHED THE SUBJECT WITH COUNSEL ABOUT WHAT IS [00:55:01] IN THE, THE DEVELOPMENT AGREEMENTS. CURRENTLY. IT WAS CONTEMPLATED THAT THIS ACTION COULD TAKE PLACE SOMETIME IN THE FUTURE. SO, UM, THAT WAS ALWAYS THE POSSIBILITY OUT THERE. IT'S REALLY NOT A SURPRISE THAT MAY BE SOONER THAN WHAT ONE WOULD HAVE THOUGHT, BUT THAT'S WHAT HAPPENS. I MEAN, YOU CAN'T FORETELL THE FUTURE. YOU CAN ONLY CONTEMPLATE THE POSSIBILITIES, WHICH IN THE, THAT IS IN THEIR DEVELOPMENT AGREEMENT QUESTION. I HAVE, I GUESS FOR KEITH OR ANDREW, WHICHEVER ONE IS, SO SAY THIS GO FORWARD AND WE DO A TAX, I GUESS THERE'S GOING TO BE TWO PARTS HERE. FIRST ONE IS I GUESS, MORE FOR COUNSEL. WHAT IS THE BETTER LEGAL STANDING WITH REGARDS TO THE MARIJUANA? IS IT A DEVELOPMENT AGREEMENT OR A TAX? IF THAT QUESTION MAKES SENSE, I'M NOT SURE WHAT IT IS. YOU'RE ASKING MR. THERE IS A CITY HAVE A STRONGER LEGAL POSITION WITH THE DEVELOPMENT AGREEMENT OR, OR, OR A TAX THAT'S BEEN VOTED ON BY THE VOTER. OH, YOU MEAN WHAT IS MORE DEFENSIBLE IN TERMS OF DEVELOPMENT AGREEMENT OR ATTACKS OR CHALLENGED ATTACKS? PROBABLY, BUT, BUT THE DEVELOPMENT AGREEMENTS THAT ARE IN PLACE ARE DEFENSIBLE AND LEGALLY ENFORCEABLE, BUT, BUT IT TAXES, UM, YOU KNOW, JUST AS DEFENSIBLE AND MAYBE MORE SO BECAUSE IT'S A VOTE OF THE PEOPLE. UH, THERE ARE DIFFERENT TYPES OF CHALLENGES TO A DEVELOPMENT AGREEMENT THAN THERE ARE TO A TAX. UM, BUT GENERALLY, UH, A TAX THAT IS PROPERLY IMPOSED AND, AND APPROVED BY THE VOTERS IS, IS BULLETPROOF, AS THEY SAY, AS LONG AS IT'S WORDED CORRECTLY. OKAY. AND THEN I GUESS THIS IS FOR ANDREW ON THE DEVELOPMENT AGREEMENT. SO THERE'S, UM, MONETARY INCENTIVES OR PAYMENTS THAT ARE NEEDED THAT ARE OBLIGATED BY THE DEVELOPMENT AGREEMENT. IF THIS WENT FORWARD AND THE VOTERS APPROVED IT AND THERE WAS A TAX ON DISTRIBUTION, CAN THE COUNCIL, I ASSUME SO. OR CAN YOU RENEGOTIATE SOME OF THOSE MONETARY THINGS IF THE TAX IS A MORE OF A BURDEN AND THAT WAS COMPLICATED BY THE WORDS SAY, IT'S, THEY'RE GOING TO PAY $10,000 TO NONPROFITS. COULD THAT GO AWAY IF COUNCIL CHOSE TO DO AWAY WITH IT? WE CAN CERTAINLY HAVE THAT CONVERSATION. YES. ALL RIGHT. IF I, IF I COULD, UH, UPLINE OR PROVIDE SOME PERSPECTIVE. UM, SO WHEN, WHEN THIS, UM, ITEM WAS BROUGHT TO STAFF TO RESEARCH KNOW, SO THE, UM, MAXIMUM TAX RATE OF 6% WOULD BE, AS IT'S WRITTEN TODAY IN THE, UH, IN THE PROPOSED ORDINANCE ON ANY CANNABIS BUSINESS, THE COUNCIL WERE TO APPROVE TODAY OR IN THE FUTURE, WHICH INCLUDES, UH, CANNABIS BUSINESS TYPES THAT COUNCIL HAS NOT YET, OR MAY NEVER ASKED US TO LOOK INTO, FOR INSTANCE, CULTIVATION OR MANUFACTURING. THOSE TYPES OF BUSINESSES WOULD ALSO BE SUBJECT TO THE 6% MAXIMUM CAP. UM, I THINK THE DISCUSSION ABOUT, UM, SEGREGATING SOME BUSINESS TYPES, UH, TO A DEVELOPMENT AGREEMENT AND THEN ALLOWING OTHERS TO HAVE ATTACKS. I UNDERSTAND THE CONCEPT BEHIND THAT. I THINK FROM A PURE APPLICATION OF ATTACKS ON CANNABIS BUSINESSES, IT WOULD BE CLEANER TO HAVE A TAX SYSTEM IN PLACE FOR ALL CANNABIS BUSINESSES, UH, TYPES THAT THE COUNCIL MAY CURRENTLY, OR IN THE FUTURE WANT TO, UM, PROVIDE, UH, LICENSES TO HOWEVER, THE IDEA OF HAVING A, A LOWER, UM, UP TO LIMIT, UH, OUR CAP FOR CERTAIN TYPES OF BUSINESSES, I THINK IS A PERFECTLY VALID WAY TO PROVIDE SOME DEGREE OF PROTECTION TO BUSINESSES THAT DO NOT HAVE A AS HIGH UP, UH, OPERATING MARGIN OR A PROFIT MARGIN. AND ONE THING I CAN TELL YOU IS IF THE COUNCIL WERE TO DIRECT US TO DO THIS AND ESTABLISH A LOWER CAP, FOR INSTANCE OF LET'S SAY NO MORE THAN TWO AND A HALF FOR DISTRIBUTION OR TESTING, UM, WHEN IT CAME TIME TO DEVELOP RECOMMENDATIONS TO BRING TO COUNCIL, WE WOULD OBVIOUSLY REACH OUT TO OUR CURRENT BUSINESSES AND TALK TO THEM ABOUT WHAT THEIR PERSPECTIVES ON THOSE RATES SHOULD BE. AND WE WOULD TAKE THAT INTO CONSIDERATION, BUT WE WOULD ALSO LOOK TO STRUCTURE IT IN A WAY THAT'S FAIR FOR THE CITY AND ALSO A ONE THAT WOULD ALLOW THOSE BUSINESSES TO OPERATE. WILL IT BE THE SAME AS WHAT A DEVELOPMENT AGREEMENT CURRENTLY PROVIDES MAYBE, OR MAYBE NOT A, IT'S HARD TO TELL RIGHT NOW, BUT THAT WOULD BE MY RECOMMENDATION IS THAT THE TAX STRUCTURE BE PUT IN PLACE FOR ALL CANNABIS BUSINESS TYPES AND ALLOW US SOME FLEXIBILITY. UH, IF THE COUNCIL WERE TO DIRECT THAT TONIGHT TO SET LOWER CAPS, FOR INSTANCE, FOR CERTAIN TYPES OF BUSINESSES, [01:00:01] UH, THEN THE 6% THAT WOULD BE IN PLACE FOR INSTANCE, FOR A HOME DELIVERY DISPENSARY. ALL RIGHT. THANKS, KIM GOMEZ. YOUR TURN. I GOT OUT OF THE MIRROR, NOTHING ROSE. OH, THANK YOU, MR. MAYOR. YEAH. UM, I'M A COUNCIL MEMBER SHAW. I AM PRO BUSINESS. I DO, I AM. I WANT BUSINESSES TO EXCEL HERE IN OUR COMMUNITY. SO I DON'T HAVE A CONCERN BECAUSE I KNOW THAT IF YOU AND I WIN THE SEAT IN NOVEMBER, THAT WE WILL CONTINUE TO SUPPORT THE BUSINESSES. AND I SURE THAT ALL THE REST OF IT IS PEOPLE THAT ARE ON COUNCIL RIGHT NOW AS WELL, UH, UH, BUSINESS FRIENDLY. SO THAT IS NOT A CONCERN OF MINE THAT, UH, WE WOULD WORK WITH THE BUSINESS OWNERS. DEFINITELY. UM, UH, THE OTHER THING THAT, UH, COUNCIL MEMBER MEDRANO BROUGHT UP, WHICH IS A GOOD POINT, UH, WHEN WE HAD THIS SUBJECT MATTER, COME UP TO THE COUNSEL ON NUMEROUS OCCASIONS, WE COULD NOT COME UP TO A MAJORITY AGREEMENT. UH, SO WHEN THE MAYOR AND I DISCUSSED HIS, I THOUGHT, WHAT BETTER WAY, UH, TO GET BEYOND THIS, THEN TO PUT IT TO THE VOTERS, LET THE VOTERS DECIDE AS TO WHETHER THEY WANT THIS TYPE OF A BUSINESS TO BE IN THE CITY OF LA BARBARA OR NOT. AND WOULD THIS BE THE TAX MAXIMUM THAT THEY WOULD, UH, WOULD DESIRE? SO FOR ME AS A COUNSELOR MEDRANO, I'M NOT SO FRIENDLY ON MARIJUANA INITIATIVES. I'M NOT PRO MARIJUANA OR DRUGS OR ANYTHING LIKE THAT, BUT I WANT THE VOTERS TO HELP US DECIDE. AND THIS IS WHY I AGREED WITH THE MAYOR THAT, UH, WE SHOULD PUT IT TO THE VOTERS AND LET THEM MAKE THE DECISION. UH, SO THAT WAS MY COMMENT. THANK YOU, ROSE. I DON'T HAVE ANY FURTHER COMMENTS. SO I WILL MOVE A, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, SUBMITTING TO THE VOTERS AT THE NOVEMBER 3RD, 2020 GENERAL MUNICIPAL ELECTION CANNABIS BUSINESS TAX. AND I WILL ADD THAT WE SPLIT THAT INTO A ZERO TO 2.5% CAP FOR DISTRIBUTION I'M LAB BUSINESSES AND ALL OTHERS, WHICH WOULD INCLUDE THE HOME DELIVERY FROM ZERO TO 6% CAP AND REGULATION MEASURE AND TAKING CERTAIN RELATED ACTIONS. THAT'S THE MOTION THAT GOOD. IS THERE A SECOND? YES. DID TIM SHAW CLARIFY YOUR MOTION BEING SURE. SORRY. YOU SAID LAB. DID YOU MEAN TO, DID YOU MEAN TO SAY DISTRIBUTION FACILITIES FOR THE 2.5% COST FROM ZERO TO 2.5, 2.5 IS THE CAP. SO THAT DOES NOT NECESSARILY MEAN THAT WE'LL GO THAT HIGH, BUT YES, FOR DISTRIBUTION AND FOR THE LAB BUSINESSES AND ANY, AND ALL OTHER MARIJUANA TYPE BUSINESSES WOULD BE THE ZERO TO 6% TAP. AND REMEMBER THAT THAT'S A RANGE IT'S NOT NECESSARILY GOING TO GO TO THE CAP. IT WOULD DEPEND ON THE BUSINESS TYPE, DEPENDING ON WHAT STAFF. AND I WOULD ASSUME WE WILL GET A REASONABLE NUMBER. WHY TOM? YES. JAMES GALVEZ. CAN YOU JUST CLARIFY WHY YOU'RE NOT PLAYING IT ALL, EVERYTHING ON THE SAME PLAYING FIELD AND WHY ARE YOU GIVING DIFFERENT GAPS? BECAUSE THEY'RE BASED ON WHAT STAFF HAS RECOMMENDED, BASICALLY THAT DISTRIBUTION AND LAB BUSINESSES ARE A DIFFERENT TYPE OF BUSINESS. VERY LOW MARGINS. WE HAVE A COUPLE OF DEVELOPMENT AGREEMENTS AND THE ZERO TO 2.5% WILL GET US IN THAT COMPETITIVE RANGE WITH OTHER CITIES, WITH REGARDS TO THE, UM, DELIVERY. THOSE ARE MORE THE RETAIL TYPE OF OPERATIONS. AND I THINK THEY CAN SUPPORT UP TO 6%. I DON'T THINK THE DISTRIBUTION OF LAB BUSINESSES CAN DO THAT. SO THAT'S WHY I WOULD SPLIT IT AND LEAVE IT UP TO THE COMMUNITY TO DECIDE IF THAT'S WORKABLE OR NOT. WAS THERE A SECOND, MR. MAYOR? THIS IS MR. MAYOR. THIS IS KEITH CALLING CITY ATTORNEY'S OFFICE. COULD I MAKE A SUGGESTION? UH, OKAY. SO IF YOU'RE PROPOSING THAT WE AMEND THE BALLOT LANGUAGE TO RE TO CHANGE THE 6% UP TO RATE TO A 2.5% RATE FOR TESTING AND DISTRIBUTION FACILITIES AND 6% FOR ALL THE OTHER RATES WE WOULD NEED TO MAKE CORRESPONDING CHANGES TO THE ORDINANCE THAT WOULD BE PUT TO THE VOTERS BECAUSE OF THE 6% RATE IS THROUGHOUT THAT ORGANIZATION. AND THEY WOULD NEED TO BE REVISIONS TO THE ORDINANCE AS WELL, CORRECT. THAT WE WOULD NEED TO MAKE ORALLY, UM, YOU KNOW, BEFORE THE VOTE IS TAKEN. OKAY, THEN THAT, THAT IS WHAT I'M SAYING. SO DO I NEED TO REPEAT IT THAT WE'RE GOING TO CHANGE THE [01:05:01] ORDINANCES THAT'LL BE ON THE BALLOT? YEAH. SO YOUR, YOUR EMOTION, I THINK SHOULD, SHOULD BE CLEAR THAT IT, IT, IT MOVES TO APPROVE THE RESOLUTION WITH THE REVISIONS TO THE BALLOT QUESTION, UH, REPLACING THE 6% RATE WITH, UH, TO 2.5% FOR TESTING AND DISTRIBUTION AND UP TO 6% FOR ALL OTHER TYPES. AND THEN MAKING CORRESPONDING CHANGES TO THE ORDINANCE ITSELF TO REPLACE THE 6% RATE IN THE ORDINANCE WITH THOSE SAME LIMITS. THAT'S EXACTLY WHAT I SAID. AND THAT'S WHAT I MOVED THAT WE DON'T HAVE A SECOND. IS THERE A SECOND? I WOULD SECOND ROW THE SECOND. OKAY. WELL THE CLERK, YES. THIS WAS COUNSEL MS. SHAW BEFORE WE VOTE, MIGHT I, UH, A FAVOR, WOULD IT BE POSSIBLE TO HEAR FROM THE ATTORNEY, UH, WHO SPOKE EARLIER? IT SOUNDS LIKE SHE WORKS IN OTHER CITIES. THAT'S WHAT HER OPINION WAS ON THIS MOTION. IS THAT POSSIBLE? UH, I THINK SHE EXPRESSED HER POINT AND WE ALSO HAD THE COMMUNICATIONS, SO I JUST ASSUMED VOTE ON THIS. SO WILL THE CLERK PLEASE CALL THE ROLE COUNCIL MEMBER MADONNA MAY OR BE MISSION REAL QUICK MAYOR BEAMISH IF I MAY. YES. HELLO. YEAH. YEAH. AND I APOLOGIZE LORI. ONE SECOND. SO I, I TOO, A BIT CONFUSED HERE WITH, UH, WE ARE, WE'RE ACTUALLY CHANGING THE LANGUAGE JUST FROM WHAT IT READS ON OUR AGENDA, IS THAT CORRECT? WHEREAS KEITH HAD SAID WHAT WE'RE CHANGING AND WE'RE GOING TO MAKE ALL THE OTHER CHANGES. WE HAVE A SPLIT AND IT WILL HAVE TWO DIFFERENT RATES, ONE FOR DISTRIBUTION AND LAB BUSINESSES. SO THAT TAX RATE WOULD BE FROM ZERO TO A CAP. THE 2.5%. YOU KNOW, MY THINKING IS BASED ON THE BUSINESS MODEL, I THINK THAT'S ALL THAT COULD BE SUPPORTED. THE OTHERS WOULD BE ZERO TO 6%. SO IF THE VOTERS SAY, OKAY, THEN WE AUTHORIZE COUNCIL TO DO HOME DELIVERY. I WOULD SUSPECT THAT TO BE THE 6% RATE OR ANY OTHER TYPE OF BUSINESSES, THE COUNCIL I CONTEMPLATE IN THE FUTURE. GOT IT. OKAY. VERY GOOD. SO WE HAD A MOTION AND A SECOND, SO WELL EQUIPPED, PLEASE CALL THE ROLL COUNCIL MEMBER MEDRANO. YES. COUNCIL MEMBER SHAW. YES. COUNCIL MEMBER GOMEZ. NO MAYOR PRO TEM ESPINOSA. YES. MAYOR BEAMISH YES. MOTION PASSES FOUR TO ONE. THANK YOU. SO STAFF IS CLEAR ON THE DISCUSSION ON WHAT WE JUST DID, CORRECT? YES. MR. MAYOR. THANK YOU. WE'RE CLEAR. [3. DESIGNATION OF VOTING DELEGATE AND ALTERNATES TO THE LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE That the City Council designate a voting delegate and up to two alternate voting delegates to attend the League of California Cities (LOCC) Annual Conference which, due to the COVID-19 pandemic, will be a virtual on-line only event this year, occurring on October 7 through October 9, 2020.] ALRIGHT, THEN WE'LL GO TO ITEM THREE, WHICH DESIGNATION OF VOTING DELEGATES AND ALTERNATES TO THE LEAGUE OF CALIFORNIA AND CITIES ANNUAL CONFERENCE APP REPORT. THANK YOU, MR. MAYOR MEMBERS OF COUNCIL. THIS IS ROBERT FERRIER FROM THE CITY MANAGER'S OFFICE. CAN YOU HEAR ME OKAY? YES. GOOD. THANK YOU. EACH YEAR, THE LEAGUE OF CALIFORNIA CITIES HOST AN ANNUAL CONFERENCE AT WHICH TIME MEMBER CITIES CONSIDER RESOLUTIONS PUT FORTH FOR JOINT CONSIDERATION. THIS YEAR, DUE TO THE COVID-19 PANDEMIC, THE CONFERENCE WILL BE A VIRTUAL ONLINE EVENT ONLY AND WILL OCCUR OCTOBER 7TH THROUGH OCTOBER THE NINTH, THE RESOLUTIONS ARE FORTHCOMING AND WILL BE PRESENTED TO THE CITY COUNCIL FOR CONSIDERATION, UM, AT A FUTURE DATE. UH, HOWEVER, IN ORDER FOR A CITY TO CAST A VOTE, A THE CITY COUNCIL MUST APPOINT A MEMBER TO SERVE AS ITS VOTING DELEGATE. UM, AS WELL AS AN ALTERNATE OR ALTERNATES TO ACT IN HIS OR HER PLACE, THE VOTING DELEGATES AND ALTERNATE, IF THEY VOTE, THEY MUST ATTEND THE ANNUAL BUSINESS MEETING, WHICH OCCURS ON OCTOBER THE NINTH. UM, AND AS I SAID, BECAUSE OF COVID-19, THIS WILL BE A VIRTUAL CONFERENCE THIS YEAR. UH, HOWEVER, THE CITY'S APPROVED FISCAL 2021 BUDGET DOES INCLUDE, UH, FUNDING FOR EACH MEMBER TO ATTEND THE CONFERENCE. IF THEY SO DESIRE, UH, THAT CONCLUDES OUR PRESENTATION. STAFF ASKS THAT YOU PLEASE NOMINATE A DELEGATE AND OR ALTERNATES. THANK YOU. OKAY. ANY QUESTIONS FOR STAFF HEARING NINE? I DID INVITE THE TOP OF KEVIN. ANY COMMENTS ON ANYBODY ON THE LINE WANTING TO TALK BREE? NO MAYOR BEAMISH. THERE IS NOBODY ON THE LINE WISHING TO SPEAK. THANK YOU. [01:10:01] THEN I'LL CALL FOR A COUNCIL DISCUSSION AND ACTION. I WOULD LIKE TO NOMINATE JAMES GOMEZ. I'D LIKE TO NOMINATE OUR MAYOR, MAYOR PRO TEM MAYOR PRO TEM, MAYOR AND MAYOR PRO TEM. WHICH ONE? FOR THE, UH, VOTING DELEGATES. WELL, UH, I WROTE BEEN PRETTY ACTIVE. WHY DON'T WE, UH, HAVE ROSE OUR REPRESENTATIVE AND YOU AS THE ALTERNATE, WOULD YOU BE OKAY WITH IT? RIGHT. AND THAT'S FINE. YEP. THAT'S PERFECTLY FINE. WE JUST NEED A THIRD THEN. THAT'S ARE ANY OTHER NOMINATION? I NOMINATED JOSE MADRONE. ALL SECOND. COUNCILMAN GOMEZ IS A NOMINATION. OKAY. AND CAN YOU BE THE THIRD OR THE SECOND ALTERNATE? YES. OKAY. SO THAT I COULD TALK TO HIM. IT'S HIS MOTION? UH, PRO THEY'D BE THE THIRD. OKAY. AND ANY OTHER NOMINATIONS? ALRIGHT. WE HAD SEGMENTS AND, UH, I JUST KNOW WE CLOSED NOMINATIONS, CAST A UNANIMOUS BALLOT. ALL THOSE IN FAVOR. AYE. AYE. AYE. EVERYBODY VOTED. THANK YOU VERY MUCH. WE WILL TAKE CARE OF THAT IN OCTOBER. [ MAYOR’S COMMUNITY CALENDAR:] SO NOW WE'LL GO TO THE MAYORS COMMUNITY CALENDAR, WHICH I GUESS IS THAT'S ON THE SCREEN. IS THAT CORRECT, LAURIE? YES, IT IS. ALL RIGHT. SO NUMBER LINING HERE, STAY INFORMED ABOUT THE CHRONIC VIRUS AND WHAT YOU CAN DO TO HELP SLOW THE SPREAD. AGAIN, WE'VE BEEN TALKING ABOUT THIS. IT SEEMS FOR A LONG TIME. NOW THE CDC, CALIFORNIA DEPARTMENT OF PUBLIC HEALTH, ORANGE COUNTY HEALTH AGENCY COMBINED, THIS, EACH OF US ARE SEVERAL SIMPLE ACTIONS WE CAN TAKE. AND WE KEEP CONSISTENTLY SAYING THIS CAUSE IT WORKS. IF PEOPLE DO THIS, WASH YOUR HANDS THOROUGHLY AND FREQUENTLY WITH SOAP IS AN ALCOHOL BASED HAND. SANITIZER COVER YOUR MOUTH AND NOSE WHEN COUGHING OR SNEEZING OR TOUCHING YOUR EYES, NOSE AND MOUTH CLEAN AND DISINFECT FREQUENTLY TOUCHED SURFACES. UH, FOR MORE INFORMATION YOU HAVE THOSE WEBSITES THAT YOU CAN GO TO. UH, THE NEXT SIDE IS COVID-19 CAN SPREAD EASILY FROM PERSON TO PERSON AND BECAUSE IT IS POSSIBLE TO HAVE COVID-19 AND HAVE NO SYMPTOMS, THE SIMPLE ACT OF, OR IN A MASK IN PUBLIC AND HELP SLOW THE SPREAD OF THE DISEASE OR A MASK IN ANY INDOOR PUBLIC SPACE. WHEN WAITING IN LINE, WHEN USING PUBLIC TRANSPORTATION OR RIDE SHARING SERVICE AT WORK. WHEN OTHER, WHEN NEAR OTHERS ARE MOVING THROUGH COMMON AREAS AND OUTDOORS, THAT YOU CANNOT MAINTAIN SOCIAL DISTANCE OF SIX FEET FROM OTHERS, EVERYONE WEARS A MASK WE'RE ALL BETTER PROTECTED FROM. COVID-19 BE CONSIDERATE OF THOSE AROUND YOU. ANYTIME I'M INSIDE THE STORE OR ABOUT WHERE I AM AROUND PEOPLE, I WEAR MY MASK. CAUSE I'M HOPING THAT I HELP PEOPLE FROM GETTING COVID VIRUS AGAIN. CITY HALL, LOTTA POLICE STATION LOBBY, AND THE COMMUNITY CENTER FRONT DESK WE'RE OPEN TO THE PUBLIC, BUT ALL OF THEIR CITIES FACILITIES ARE CLOSED UNTIL FURTHER NOTICE, BUT PARKS ARE OPEN FOR PASSIVE USE SUBJECT TO SOCIETAL DISTANCING. THE PLAYGROUND FITNESS EQUIPMENT AND SPORT FIELDS ARE TEMPORARY ARE CLOSED. AS YOU HEARD EARLIER, IF YOU'RE ON THE LINE, THAT INCLUDES THE SKATE PARK AS DIRECTED BY THE GOVERNOR AS ALWAYS CITY OPERATIONS, CONTINUE AND STAFF AVAILABLE BY PHONE OR EMAIL FOR THOSE WHO WISH NOT TO COME TO CITY HALL. IF YOU DO VISIT A CITY FACILITY, PLEASE REMEMBER TO WEAR A MASK OR FACE COVERING TO PROTECT OTHERS. UH, YOU CAN GET UP TO DATE INFORMATION ONLINE AT DOT GOV OR FOLLOW US ON FACEBOOK AND TWITTER. AND THIS IS GETTING REALLY IMPORTANT. WE'VE BEEN TALKING ABOUT THIS FOR QUITE SOME TIME. NOW, HAVE YOU COMPLETED YOUR 2020 U S CENSUS FORM YET? A LOT OF REPRESENTATION AND REPRESENTATION, UH, IS COUNTED TOWARDS THIS REGARD TO I'M GETTING ALL MIXED UP HERE. UH, OUR REPRESENTATIVES ARE, AND OUR NUMBERS THAT WE GET ARE BASED ON THE SENSE THAT SO PLEASED EVERYBODY IN THE HARBOR, PLEASE SEND IN YOUR CENSUS FORM. YOUR PARTICIPATION IS VITAL. AS I MENTIONED, THAT DETERMINES CONGRESSIONAL REPRESENTATION AND HOW BILLIONS OF DOLLARS IN FEDERAL FUNDING THEY'RE ALLOCATED TO COMMUNITY CROSSED OUR NATION FOR YOUR CONVENIENCE. THE FUNNEL CAN BE SUBMITTED BY MAIL, BY PHONE OR ONLINE FOR MORE INFORMATION GO TO THE 2020 CENSUS.GOV CATEGORY WEBSITE, UH, JOINED THE CONVERSATION AS PART OF THIS COMMUNITY FOCUSED BUDGET PLANNING PROCESS. THE CITY CONDUCTED A COMMUNITY SURVEY TO CAGE, RESIDENT OPINION ON SERVICE PRIORITIES. AND WE WANT TO HEAR FROM YOU TOO, SO YOU CAN CLICK ON THE, JOIN THE CONVERSATION ICON NEAR THE TOP OF THE CITY PHONE PAGE AND COMPLETE [01:15:01] A SHORT ONLINE FORUM. AND YOU CAN CALL CITY HALL FOR MORE INFORMATION. THESE THINGS WE'VE BEEN ADDRESSING JUST ABOUT EVERY COUNCIL MEETING. IT IS IMPORTANT. PLEASE TAKE CARE AND STAY SAFE [ COMMENTS FROM COUNCILMEMBERS:] COMMENTS FROM STAFF, MR. MAYOR, THE CITY MANAGER SANDRO. I HAVE NONE. THANK YOU, COUNCIL MEMBERS. SO LET'S START WITH THOSE A YEAH. MR. MAYOR. I JUST, AGAIN, WANTED TO THANK OUR, OUR CITY STAFF AND OUR EXECUTIVE STAFF AS WELL FOR THE HARD WORK THEY PUT IN, ESPECIALLY TO GET THESE MEETINGS, UH, ON A, ON A TELECONFERENCE. I KNOW IT IS A BIT OF A, A BIT OF A, UH, A HARDSHIP TO GET THESE GOING THIS WAY. IT'S A LOT EASIER FOR US, I THINK, TO BE IN COUNCIL CHAMBERS. AND I LOOK FORWARD TO BEING IN COUNCIL CHAMBERS TO BE ABLE TO SEE EVERYBODY AT THE, HOPEFULLY AT SOME FUTURE DATE, THAT'S NOT TOO FAR OFF. UH, THAT BEING SAID AS WELL. I WOULD ALSO LIKE TO CLOSE IN THE MEMORY OF, UH, UH, A, UH, A WHITTIER RESIDENT ACTUALLY, WHO HAPPENED TO FREQUENT. LAHABRA QUITE A BIT. HIS NAME IS TOM MACKIE AND, UH, WAS, UH, VERY, UH, VERY, HAD A, HAD A GREAT PRESENCE ON SOCIAL MEDIA AS WELL. FOR THOSE THAT KNEW TOM MAGGIE, UH, SENSE OF HUMOR WENT, UH, WHEN, WHEN BEYOND THIS WORLD, NICE MAN. UH, HE HAPPENS TO BE, UH, ACTUALLY, UH, LIVED ABOUT TWO STREETS OVER FROM ME. AND I SEE HIM ALMOST EVERY DAY WHEN I'M WALKING MY DOGS AT ABOUT THIS HOUR. SO I WANTED TO SEE IF WE CAN DO THAT AND, UH, AND OFFER MY CONDOLENCES TO HIS FAMILY AS WELL. OTHER THAN THAT, UH, THANK YOU. UH, WE WILL, UH, JOSE IS, YES, I KNOW OF HIM FROM SOCIAL MEDIA ALSO AND HIS GREAT GUY. UH, TIM, I DON'T HAVE ANY COMMENTS IN CAM JIM. OKAY. NO, I CARE ENOUGH. I WOULD ALSO SHARE IN A COUNCIL MEMBER OF THE MAGENTO CONDOLENCES OF TOM MACKIE IN CLOSING IS A MEMORY AS WELL. ALL RIGHT. THANK YOU. ROSE. NO COMMENTS, MR. MAYOR. ALL RIGHT. THANK YOU. UM, I WOULD JUST LIKE TO THANK STAFF ON THEIR WORK ON THIS INITIATIVE. I KNOW IT WAS REALLY A, A SHORT NOTICE UNEXPECTED, BUT YOU DID A GREAT JOB. I APPRECIATE THE TIME AND RESEARCH WENT INTO IT AS LONG WITH COUNCIL AND, UH, I, UH, FEEL COMFORTABLE TURNING THIS OVER TO THE VOTERS TO SEE WHAT THE COMMUNITY HAS TO SAY WITH REGARDS TO OUR FINANCES AND POTENTIALLY THE REVENUE GAIN FROM THE MARIJUANA BUSINESSES, IF THEY DESIRE THAT. SO, ANYWAY, I, I APPRECIATE STAFF TAKING PART IN THAT, UH, THIS, THIS LAST WEEK, KIND OF A FIRE DRILL. AND AT THIS TIME, UH, I WOULD CLOSE THIS MEETING AND THE NAME OF TOM MACKIE AND THE MEETING IS ADJOURNED TO MONDAY, AUGUST 17TH, 2020 AT 5:30 PM. AND THE COUNCIL HAVE CLOSED SESSION ROOM ONE 12 C 100 EAST LAVA BOULEVARD FOLLOWED BY THE REGULAR MEETING AT 6:30 PM IN THE CITY COUNCIL CHAMBER. WE ARE NOW ADJOURNED. THANK YOU EVERYBODY. GOOD NIGHT, EVERYBODY. GOOD NIGHT, EVERYONE. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.