Meeting Summary
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At a glance
America’s 250th Celebration
- Staff presented an overview of city-wide celebrations, including City Hall lighting, street banners, and a Fourth of July event at Kennedy Park.
- Winners of the community decorating contest were announced, and local business sponsors were recognized.
Downtown El Cajon Community Benefit District
- Staff presented the background for transitioning from a Property-Based Improvement District to a Community Benefit District to support downtown development.
- The Council adopted a resolution of intent to set a public hearing and direct the mailing of ballots to affected property owners.
- The Council authorized the City Manager to vote in support of the district's creation and accepted the management district plan.
Social Services and Business Incubator Programs
- Staff reported that the city purchased the 405 East Lexington Avenue property using ARPA funds and leased it to the Chaldean Community Council.
- Construction for building improvements is anticipated to begin in September and conclude by November to meet federal deadlines.
- The city was awarded a $1 million HUD grant, which will be utilized after ARPA funds are expended.
Chaldean Community Council Activity Report
- The Chaldean Community Council reported serving over 16,000 individuals with housing, job training, and healthcare services since the agreement began.
- The organization highlighted outcomes including employment placements and housing assistance for 28 families through a foundation partnership.
- The Council received the activity report detailing program status, small business incubator challenges, and other community initiatives.
405 East Lexington Avenue Building Improvements
- Staff recommended awarding the bid to GQ Builders for $430,000 after determining the low bidder was non-responsive due to missing subcontractor details.
- The Council approved resolutions finding the protest against the low bidder to be with merit and awarding the contract to the responsive bidder.
Sewer Lateral Policy
- The Council discussed public concerns regarding the cost and responsibility for aging sewer laterals on private property.
- Staff were directed to return with a report providing options for mitigating the financial burden on homeowners.
Parkway Plaza Acquisition Options
- The Council expressed concern that the acquisition process had stalled and requested staff to present all available alternatives to move the project forward.
- Staff were directed to examine legal options and provide an overview of land use perspectives for the historically significant property.
Kaiser Permanente Acquisition Options
- The Council discussed the current condition of the Kaiser property and its lack of tax revenue due to non-profit status.
- Staff were directed to return with all available options, including legal avenues, to compel hospital construction or find an alternative resolution.
Closed Session
- The Council met in closed session to confer with legal counsel regarding anticipated and existing litigation.
- The City Attorney reported that direction was given during the session and no reportable action was taken.
Full summary
Opening and Pledge of Allegiance
- The meeting was called to order with all council members present. The City Clerk confirmed the posting of the order of adjournment for the July 14, 2026 meeting and the agenda for the July 28, 2026 meeting. The Pledge of Allegiance was recited, followed by a moment of silence.
Presentation: America’s 250th Celebration
- Julie Alon, Deputy Director of Parks and Recreation, presented an overview of the city’s America 250 celebrations. The presentation detailed the lighting of City Hall with the America 250 logo, the installation of street pole banners designed by a city employee, and the placement of large street banners. Alon described the Fourth of July picnic and fireworks at Kennedy Park, which included patriotic stilt walkers, games, crafts, train rides, and an interactive timeline highlighting historical events from 1776 to 2026. The winners of the community-wide Spirit of America decorating contest were announced: Yvette Delgado (first place), Richard Strange (second place), and Ron and Elizabeth Vallis (third place). Sponsors for the celebration efforts were recognized, including North Park Produce, Tykes Liquor, Three Brothers Liquor, Main Street Market, Fair Valley Liquor, Broadway Gas, Main Street Liquor, and San Diego Cash & Carry.
Consent Calendar
- The Council reviewed the consent calendar. Council member Golden requested discussion of Item 4. Steve Gobel commented on the Second Amendment and Restated Disposal Agreement (SARA) with the San Diego Metro Wastewater JPA, noting that the amendment clarifies billing for the metro portion of wastewater as the city transitions to advanced water purification. He stated that the agreement required approval from three-fourths of the members and that suggestions from Padre Dam improved the terms for El Cajon. No other consent items were pulled for discussion. A motion was made and seconded to approve all consent items. The motion passed by unanimous vote.
Public Comment
- Five speakers addressed the Council regarding matters within the jurisdiction of the City Council/Housing Authority successor agency.
- Laurie Debus thanked the Council and staff for their assistance with traffic calming measures on Hamishaw and Gustavo roads, citing a serious accident in March 2026 as the catalyst for the effort. She acknowledged the involvement of city engineers, the City Manager, Council member Steve Gobel, and various law enforcement agencies.
- Ray Justice expressed support for the city’s services but raised concerns about traffic congestion on Chase Avenue, citing two fatalities in the area. He also described a dispute with a neighbor regarding a property complex, alleging that the neighbor had violated conditions of a special permission to build by tearing down a wall, which exacerbated water issues on Justice’s property.
- Brenda Hammond promoted the Parkway Plaza shopping center and its historical significance, encouraging residents to visit and appreciate the history displayed there.
- Rich Ryle raised concerns regarding the Downtown El Cajon Property-Based Improvement District (PBID) and the proposed Community Benefit District (CBD). He alleged that Mayor Wells had a conflict of interest due to prior board membership, that City Manager Graham Mitchell had served on the PBID board, and that the hiring of New City America (NCA) and the issuance of an RFP for district management were unauthorized and violated the Brown Act. He requested that the Council pull Agenda Item 6 from the agenda and investigate the alleged irregularities.
- Dr. Ryan Pham and Samsam Fadil, representing the Measure the Air Community Center and the Chaldean Community Council, respectively, urged the Council to agendize and pass a resolution recognizing Middle Eastern and North African (MENA) communities in government data. They cited the lack of representation in census data and its impact on resource allocation, educational support, and community services.
- Truth (remote speaker) provided feedback on the telephonic system, expressed opposition to salary increases, and stated opposition to the MENA resolution. They raised concerns about water rates, the disposal of water from Lake Hodges, and a 2022 Memorandum of Understanding (MOU) regarding "Housing First" principles, requesting that the city rescind the MOU. They also commented on the placement of outdoor dining tables on Main Street.
Agenda Item 6: Resolution of Intent to Establish a Downtown El Cajon Community Benefit District
- Nate Prescott, Senior Management Analyst, presented the background and status of the proposed Community Benefit District (CBD). He explained that the city formed a PBID in 2011, and a 2023 analysis by New City America recommended transitioning to a CBD to better support downtown development. The PBID board hired New City America to manage the district and advised the board to expand its operations. Prescott outlined the process for creating the CBD, including the receipt of supportive petitions, the mailing of ballots to property owners, a public hearing, and the adoption of a resolution of formation. He requested that the Council receive the report and petition drive results, adopt a resolution of intent to set a public hearing and direct the mailing of ballots, authorize the City Manager to vote in support of the CBD, and accept the management district plan and engineer’s report.
- City Clerk Angela confirmed that the petition for the CBD had been received and was available for public review.
- Rich Ryle spoke again, reiterating his concerns about the legality of the process, the use of PBID funds, and the lack of legal opinions. He requested that the Council direct the PBID to provide information on the petition process and to investigate the alleged unauthorized RFP. He warned of potential lawsuits if the Council proceeded.
- City Manager Graham Mitchell clarified that the city hired New City America to conduct a study of the PBID, which was approved and budgeted by the Council. He stated that the PBID board, not the city, issued the RFP for district management services and selected New City America.
- Truth (remote speaker) expressed concern about the potential impact of the CBD assessment on small businesses and gentrification. They requested clarification on the availability of the petition documents online and the timeline for their release.
- A motion was made and seconded to receive the report, adopt the resolution to approve the resolution of intent to set a public hearing and direct the ballots to be mailed to affected property owners, authorize the City Manager or designee to vote in support of the creation of the Downtown Community Benefit District, and accept the management district plan and engineer’s report. The motion passed by unanimous vote.
Agenda Item 7: Update on Social Services and Business Incubator Programs
- Ryan Villegas, Senior Management Analyst, presented an update on the social services and business incubator programs located at 405 East Lexington Avenue. He noted that the city purchased the property in early 2024 using ARPA funds and entered into two five-year lease agreements with the Chaldean Community Council (CCC) for social services and a small business incubator. The small business incubator agreement includes a three-year program review scheduled for May. Villegas reported that the bid for building improvements closed earlier in the month, with construction anticipated to begin in September and conclude in November to meet the ARPA deadline of December 31. He also noted that the city was awarded a $1 million Community Project Funding grant through HUD, which is a reimbursement grant and cannot be used until after the ARPA funds are expended. He invited Dr. Nori Barka of the Chaldean Community Council to provide updates on the programs.
Agenda Item: Chaldean Community Council Activity Report
- A representative from the Chaldean Community Council (CCC) presented an activity report detailing services provided under the 2024 Request for Proposal (RFP) with the City of El Cajon. The presentation covered the following points:
- Services and Capacity: The CCC reported serving 16,921 individuals since the agreement began, with an annual capacity of up to 25,000 people. Services include housing assistance, job training, healthcare placement, and business development. The organization operates with 15 staff members and volunteers, working part-time hours (10:00 AM to 2:00 PM).
- Outcomes: The CCC reported helping approximately 200 individuals find employment through partnerships with the Cajon Valley School District and other local businesses. They also highlighted a housing navigation program in partnership with the San Diego Foundation, which has assisted 28 families, including providing up to $5,000 in assistance for security deposits and furniture.
- Small Business Incubator: The CCC described the status of their small business incubator program. They noted that the physical space is currently under renovation and not yet available for use. Challenges cited include the lack of seed capital for entrepreneurs and the time required for federal funding procedures. The CCC is developing an "El Cajon Small Business Directory" app and providing digital marketing support to businesses in the interim.
- Other Initiatives: The presentation included updates on a planned public broadcasting service (Middle Eastern Broadcasting Services) funded by a $1 million congressional earmark, a "Chaldean Giving Back" mobile grocery program, and partnerships with local police, the District Attorney’s office, and health organizations.
- Staff Testimony: Several CCC staff members, including the Executive Director, a housing navigator, and marketing staff, provided brief statements regarding their roles and the impact of the programs on clients.
- Two remote participants provided comments: 1. One speaker alleged that the incubator program was fraudulent, citing a lack of graduated businesses and questioning the use of tax dollars. The speaker requested an independent audit and a no-vote on the item. 2. Another speaker read excerpts from social media posts alleging a lack of transparency, claims that services were not free, and perceptions that assistance was directed toward specific social circles.
- A motion was made to receive the report. The motion was seconded. The motion carried by unanimous vote.
Agenda Item 8: 405 East Lexington Avenue Building Improvements (Bid No. 005-27)
- Staff from the Development Services Department presented the bid results for building improvements at 405 East Lexington Avenue, a property acquired by the City in early 2024 and leased to the Chaldean Community Council.
- Project Scope: The project involves repairs to the roof, HVAC units, and second-floor improvements for the small business incubator. The funding source is the American Rescue Plan Act (ARPA), with approximately $488,000 available for construction after deducting architect fees.
- Bid Results: Eleven bids were received. The apparent low bidder was NEMA General Contracting. However, staff recommended awarding the bid to GQ Builders, the lowest responsive and responsible bidder, in the amount of $430,000 (Base Bid + Alternate 3).
- Protest Resolution: Staff explained that NEMA’s bid was deemed non-responsive because they did not list a licensed subcontractor for fire protection work, which was required by the bid documents. Staff stated that NEMA’s proposed scope for the fire suppression system was insufficient (maintenance rather than the required modification/rework) and did not match the city’s specifications.
- Alternates: The recommended award includes the base bid and Alternate 3 (second-floor mechanical, electrical, plumbing, and flooring upgrades). Other alternates (TV studio, exterior items, accessible parking, ADA restroom upgrades) were excluded to stay within the ARPA budget, with the option to revisit them if contingency funds remain unused.
- A representative of NEMA General Contracting (Amar Amin) addressed the council, arguing that the protest against their bid was without merit. He stated that the fire sprinkler work constituted less than 0.5% of the total bid, which exempted them from listing the subcontractor in the bid documents per the solicitation rules. He requested that the council reevaluate the decision and consider NEMA as the lowest cumulative bidder.
- Staff clarified that they had allowed NEMA to submit the subcontractor scope after the fact, but the submitted scope did not match the required work (design and build vs. maintenance). Staff maintained that NEMA’s bid was non-responsive because the required licensed subcontractor was not properly listed or scoped according to the bid documents.
- A motion was made to approve Resolutions 1, 2, and 3 as outlined in the staff report, which includes finding the protest from GQ Builders on Ground 1 to be timely and with merit, finding other protest grounds without merit, finding NEMA non-responsive, and awarding the bid to GQ Builders for $430,000. The motion was seconded. The motion carried by unanimous vote.
Agenda Item 14: Sewer Lateral Policy
- Council members discussed concerns raised by the public regarding the cost and responsibility for sewer laterals on private property. They noted that much of the city’s infrastructure is 50–75 years old and at risk of failure. The Mayor and Council Member Ortiz proposed a discussion to solicit public feedback and explore options for mitigating the financial burden on homeowners.
- A motion was made to direct staff to return with a report providing options for mitigating the sewer lateral issue. The motion was seconded.
Agenda Item 15: Parkway Plaza Acquisition Options
- The Mayor and Deputy Mayor Mitchell presented a report regarding options for the Parkway Plaza acquisition. The Mayor expressed concern that the process had stalled and requested that staff return with all available alternatives to move the process forward. Deputy Mayor Mitchell agreed, noting the property’s historical significance and suggesting the need for revitalization, including potential ideas such as enclosed sports areas. Staff clarified that they would provide an update on current efforts, present options, and offer an overview of the land use perspective, while noting that specific land use ideas should be directed to the property owner.
- Public comments were received from Brenda Hammond, who encouraged the council to visit the site to observe its current condition, and Rich Ryle, who suggested using staff expertise and consultants to determine the highest and best use of the property to ensure economic viability. Councilmember Goebel noted that three national businesses (Shake Shack, Chick-fil-A, and Raising Cane’s) are under lease at the location, citing a Retail Insight advertisement. Councilmember Ryle advised staff to verify lease lengths to avoid potential litigation issues associated with long-term leases.
- A motion was made and seconded to ask staff to return with a report examining all options to move the Parkway Plaza project forward, including legal options. The motion passed by unanimous vote.
Agenda Item 16: Kaiser Permanente Acquisition Options
- The Mayor and Deputy Mayor Mitchell presented a report on Kaiser Permanente acquisition options. Councilmember Goebel declared a conflict of interest due to residing within 500 feet of the property and disqualified himself from participating in the discussion and action on this item.
- The Mayor stated that the property is currently an eyesore, attracts homeless individuals, and generates no tax revenue due to Kaiser’s non-profit status. He requested that staff return with legal options to force the project forward. Deputy Mayor Mitchell added that the city should explore options to either compel the construction of the hospital or find another hospital developer.
- A motion was made and seconded to refer the item back to staff to bring forward all available options, including legal options, to move the Kaiser property forward to the completion of a hospital or to some other resolution. The motion passed by a 4-0 vote, with Councilmember Goebel disqualified.
Agenda Items 17 and 18: Closed Session
- The City Attorney announced that the council would meet in closed session for Item 17 (conference with legal counsel regarding anticipated litigation) and Item 18 (conference with legal counsel regarding existing litigation). Item 19 was removed from the agenda.
- A motion was made and seconded to adjourn to closed session. The motion passed by a 4-0 vote, with Councilmember Goebel absent.
- Upon returning from closed session, the City Attorney reported that the council met on Items 17 and 18 as listed, that direction was given, and that no reportable action was taken.
Adjournment
- The regular joint meeting of the El Cajon City Council and the El Cajon Housing Authority Successor Agency to the El Cajon Redevelopment Agency was adjourned. The next meeting is scheduled for Tuesday, August 11, 2026, at 3:00 p.m.