BodyCity Council
MeetingRegular Meeting
Date📅 September 22, 2026

UnGovr Transcript

iHow this transcript is madeUnGovr transcribes the official recording with automated speech-to-text, separates speakers by voice, and matches voices to the seated roster. Names and attributions are AI estimates and may contain errors.Verify any quote yourself: click anywhere in the transcript and the official video jumps to that exact moment, so you can check any quote against the recording.
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0:00 – 0:0513 turns

UnidentifiedUnidentified speaker 1Proposed0:01

The meeting is called to order and I'd like to ask the City Clerk to please call the roll.

UnidentifiedUnidentified speaker 2Proposed0:05

Council Member Kendrick is absent, all others are present.

Pledge of Allegianceceremonial · click to expand · ≈25s recited, not transcribed
UnidentifiedUnidentified speaker 1Proposed0:08

Would you please stand for the Pledge of Allegiance and then remain standing for a brief moment of silence?

UnidentifiedUnidentified speaker 1Proposed0:38

Thank you. The city clerk posted orders of adjournment of September 8th and 15, 2026 meetings and the agenda of September 22nd, 2026 meeting in accordance with state law and City Council Housing Authority successor agency to the redevelopment agency policy. Now we have a proclamation for German-American month. Do we have anybody from that group here? Oh, there they are.

I didn't see the leader hose. Mike, that's proclamation for your group. Let me just read a little bit of this proclamation. It is very long so I'm just going to jump to the end, OK? Now therefore I, Bill Wells, Mayor of the City of El Cajon together with the City Council do hereby proclaim the month of October 2026 to be German-American Month. We call upon all residents to recognize the vital role German Americans have played in the development of our city and our nation and furthermore express our appreciation for promoting traditional German culture with live music, dancing games, and contests at the annual Oktoberfest in El Cajon. Please join us in celebrating the 54th anniversary of the El Cajon Clubhouse. Thank you, Mike.

Now I absolutely think we had the best Oktoberfest in town but maybe you could tell us a little bit more about all things that make it great. Oh congratulations!

not transcribed≈8s of audible speech the AI couldn’t make out▸ listen
UnidentifiedUnidentified speaker 3Proposed2:48

This evening. Thank you and Yeah, 630 but we go two weekends start Friday night at 4 till 10 Saturday noon to 10 Sunday. Noon the nine and then we start again the next weekend as well everybody's welcome you don't have to be German you all you have to do is care about things that are German even if it's just beer so And food. So we have bratwurst, we have ox on the spit, we have potato salad, potato pancakes, sauerkraut, 12 different German beers.

Our band flies in from Germany they've been coming for over 20 years so we hope you can all make it. Kids are welcome there's a whole area just for kids and under 21 is free. We have the adults on Friday and Saturday at $15 and Sunday it's five dollars kind of a family day And then any active military is also free.

UnidentifiedUnidentified speaker 1Proposed3:45

Can you tell everybody for the Internet and people watching at home where they go and when

UnidentifiedUnidentified speaker 3Proposed3:52

you're open? OK well we start Friday night at four and then the grand opening is at 630. So the address is it's at the German American Societies. It's 10 17 South Mollison Avenue obviously in El Cajon and it's just a half a block from Chase Avenue So Saturday again, 12 to 10. Sunday, 12 to 9.

UnidentifiedUnidentified speaker 1Proposed4:15

Perfect.

UnidentifiedUnidentified speaker 3Proposed4:16

All

UnidentifiedUnidentified speaker 1Proposed4:16

right. Any questions from the council?

UnidentifiedUnidentified speaker 3Proposed4:19

I will add one last thing. Partly because our FES takes up our parking lot. Parking is tight so I would suggest on top of drinking the beer that you take a ride share of some sort. We have a whole area blocked off in

UnidentifiedUnidentified speaker 1Proposed4:33

front. Good advice all around. I know you all have been to the Oktoberfest too, but always a family favorite. Really like the party you put on. It's really the best

UnidentifiedUnidentified speaker 3Proposed4:49

in town. And if you didn't get all that information, oktoberfestalcajon.com is our website and we have flyers here for anybody that doesn't have one. Raise your hand and make sure you get one on the way out. Okay.

UnidentifiedUnidentified speaker 1Proposed5:04

Anybody else want to say anything?

0:05 – 0:1020 turns

UnidentifiedUnidentified speaker 4Proposed5:08

The Queen. Hi I just like to invite everyone to come out and also know that everyone out there is volunteers so we are looking for volunteers if any of you guys here want a volunteer. So and you get school credit if your child

UnidentifiedUnidentified speaker 1Proposed5:23

do provide the Lederhosen or to the volunteers or they have to bring their

UnidentifiedUnidentified speaker 4Proposed5:27

own. They have to bring their own but we have a lot of shops that sell them and all that stuff too. Sounds great.

UnidentifiedUnidentified speaker 5Proposed5:35

OK

UnidentifiedUnidentified speaker 1Proposed5:35

thank you.

UnidentifiedUnidentified speaker 5Proposed5:37

Hi, I'm Monika. I'm of course from Germany near Heidelberg very near to Sulzbach, Sulzfeld your partner city and I'm... Are you from Sulzfeld? I'm from Heidelberg, which is near Sulzfeld.

UnidentifiedUnidentified speaker 1Proposed5:55

Oh yeah we've had their delegation come out and meet with us before.

UnidentifiedUnidentified speaker 5Proposed5:59

That's really great. I remember the new Bürgermeister that was a lady last time. Yes

UnidentifiedUnidentified speaker 1Proposed6:05

I

UnidentifiedUnidentified speaker 5Proposed6:06

remember her. She came to the club and like I said members get free entrance but you don't have to be a member to come in it's a family event for everyone In the county we have about 120,000 Germans here in San Diego County. Unfortunately they are not all club members. I

UnidentifiedUnidentified speaker 1Proposed6:33

hope you have a good time.

UnidentifiedUnidentified speaker 4Proposed6:35

Thank you.

UnidentifiedUnidentified speaker 1Proposed6:44

All right, next I'd like to invite Deputy City Manager Marisol Thorne to join us at the podium to accept the proclamation for Human Resources Professional Day.

UnidentifiedUnidentified speaker 6Proposed6:56

Hi. Good afternoon Mr. Mayor.

UnidentifiedUnidentified speaker 1Proposed6:59

Marisol, I need... Oh go

UnidentifiedUnidentified speaker 6Proposed7:01

ahead.

UnidentifiedUnidentified speaker 1Proposed7:02

I need to read a little bit of this

UnidentifiedUnidentified speaker 6Proposed7:03

first. Oh okay

UnidentifiedUnidentified speaker 1Proposed7:04

yes. So use that. All right. Whereas recognizing the significance of HR professionals Fosters appreciation for their dedication and expertise in navigating the ever-evolving landscape of workforce management. And whereas on this day we celebrate the commitment, knowledge and skill of HR professionals who shape organizational culture and drive success. Now therefore I Bill Wells Mayor of the City of El Cajon together with city council do hereby proclaim September 26th 2026 is Human Resources Professional Day in recognition of the invaluable contributions of HR professionals to our organizations and to our communities. Thank you very much.

UnidentifiedUnidentified speaker 6Proposed7:50

I do want to invite the HR team because they really are at the core of this function. So I'm going to have Celina Battisti who oversees work compensation, Judy who oversees our FMLA leave, Brenna oversees our recruiting and Megan is our HR manager who oversees the day-to-day operations. So this is actually one of my favorite days for city council because this is a behind the scenes team that normally no one gets to see. So it's our one opportunity to recognize them in public. So I'm really proud to stand here to recognize this very small But very mighty team. A lot of the work, like you said happens behind the scenes but they touch every aspect of our community in an indirect way as with every year in the state of California HR will always be in business because every year there's something new this year was no exception.

During one of the busiest times of HR when there were three contract negotiations, the HR team had to review 26 contracts for services. These are citywide contracts that now the state of California has said that HR has to review to determine if there needs to be a meet and confer notice. So that has added a new mandate. We don't have staffing for that so we've worked around it and they've done a wonderful job.

I also wanted to point out that we get analytics for our hiring and it's always amazing to see that our time to hire when we get someone on board is above the average to our peers. And I say this because we hired 58 individuals in the last 12 months we hired them Within a time period that was far less than our peers and we have one person who does the recruiting.

So I think that's a big achievement. I also want to point out that our agency also has one less HR person for every hundred employees and any other agency in the county of San Diego. So, I think this is quite an achievement for this little team Their commitment to transparency meaningful employee interaction and fiscal responsibility is reflected in all they do. They deliver service with a smile and truly look out for our employees while still having to balance the city policy that we are in charge of enforcing.

I just want to say a little bit of a thank you to our HR team. Thank you for your integrity, your hard work, your commitment to serving our community and above all thank you for treating every individual in the city regardless of the circumstances with the utmost dignity. And I do want to close with a quote that I believe truly exemplifies this HR team and how they strive to operate every day.

This is from Eleanor Roosevelt who once said, To handle yourself you use your head, to handle others you use your heart. So thank you.

0:11 – 0:1615 turns

UnidentifiedUnidentified speaker 1Proposed11:05

Thanks Marisol we appreciate the hard work you do all of you thank you. Our last presentation is for Fire Prevention Week. And Chief Coe, would you please come down to the podium and accept the proclamation please? While you're coming down I'm going to read a little bit of this. Whereas the 2026 Fire Prevention Week theme charge into fire safety safe charging as a superpower serves us to remind all residents that safe charging can help reduce the risk of fires in homes and communities.

Now therefore I, Bill Wells, Mayor of the City of El Cajon together with the City Council do hereby proclaim October 4th through 10th 2026 to be Fire Prevention Week in the City of El Cajon. We urge all residents of the city of El Cajon to learn more about and practice safe charging habits. Chief Coe?

UnidentifiedUnidentified speaker 7Proposed12:03

Good evening Mayor Wells, respected members of City Council, City staff just want to say thank you for the continued support for public safety specifically in this case Fire Prevention. I'd like to introduce to you our fire prevention team. To my right is Heartland Fire and Rescue's Fire Marshal Ken King, Deputy Fire Marshal Frankie Rodriguez and our El Cajon Fire Inspector Jeff Loverio.

And I would like to give an opportunity for Fire Marshal King to just say a couple of words regarding this year's theme. Please do.

UnidentifiedUnidentified speaker 8Proposed12:43

Good afternoon. We all have lithium ion batteries. This is part of our life now, if we were just to take a few moments and transmit an important safety message regarding that it's this one only use approved chargers if it normally takes you 20 minutes to charge up your headlamp or an hour for your e-bike and you buy a charger that does it in five minutes chances are it's going to cause issues only use listed chargers Charge your cell phone or your lithium ion batteries on hard flat services. Amazingly enough, last year when we talked about this one of the messages that resounded most with residents was a lot of residents charge their phones in their bed at night with them. They use them as alarm clocks so they may put their cell phone on their pillow or beside their pillow even under their pillow If we have a lithium ion battery fire in that scenario, that's extremely dangerous.

So don't charge your cell phone in your bed. Amazingly enough, that was one of the things that the stats have started to show as an issue and people kind of understood and said yeah maybe that's not a smart idea I'll place it on the nightstand again with any type of battery if there's any sign that is starting to fail our deputy fire marshal talks about the three S's if there's any type of smell if it's starting to swell or if there is any smoking from a battery stop using that battery immediately. Call us we'll do what we do and EDCO has been a great partner for the disposal of lithium ion batteries. So again if we can push that message out here it's one of the things that's becoming a bigger issue for us.

We're starting to run calls on him it's starting to become an issue we're starting to see injuries the stats are starting to prove out that that we're dealing with these issues now that they're so pervasive and we want to get ahead of that during this national fire prevention week. Thank you

UnidentifiedUnidentified speaker 1Proposed14:25

thank you. Okay, we are now at consent items. Consent items are routine matters enacted by one motion according to the recommendation listed below. With the concurrence of the City Council a council member or person in attendance may request discussion of a consent item at this time. Council members do you want to point any of the consent items? Seven. Seven okay let's go ahead and talk about seven

UnidentifiedUnidentified speaker 9Proposed14:58

I just want to thank city staff on this project. I remember it took a long time. We, I believe the staff report says it took 14 months longer than what was contracted and we have a hold back of about $442,000. Thank you for holding that back until we can resolve things with the contractor. That's a good save of the taxpayers' money until we can resolve it so thank you.

UnidentifiedUnidentified speaker 1Proposed15:25

Any other council members want to pull any consent items? Staff, did you want to pull any consent items?

CommentLive NationProposed · by introduction15:30

No sir.

UnidentifiedUnidentified speaker 1Proposed15:32

All right then I make a motion to approve all the consent items.

UnidentifiedUnidentified speaker 2Proposed15:35

We don't have any.

UnidentifiedUnidentified speaker 1Proposed15:37

Oh thank you. Are there speaker cards on consent items.

UnidentifiedUnidentified speaker 2Proposed15:40

No speaker cards.

UnidentifiedUnidentified speaker 1Proposed15:41

Okay then yes thanks. First and seconder please vote.

UnidentifiedUnidentified speaker 2Proposed15:51

Motion carries by unanimous vote of those present.

UnidentifiedUnidentified speaker 1Proposed15:56

Okay, we're now at public comment. At this time any person may address a matter within the jurisdiction of the City Council Housing Authority Successor Agency to the Elkhorn Redevelopment Agency that is not on the agenda. Comments relating to items on today's agenda are to be taken at the time that the item is heard. Please note that state law prohibits discussion or action by the city council on items not on the agenda.

Therefore this is not a time That the City Council will be answering questions about issues you raise. However we are taking notes and we will bring them to the attention of our city manager for follow up as needed. And of course an item may be placed on a future agenda. Angela do we have any speaker cards?

UnidentifiedUnidentified speaker 2Proposed16:38

Sir, we have 12 speakers today. The first one will be Brenda Hammond.

0:16 – 0:236 turns

UnidentifiedUnidentified speaker 10Proposed16:56

Hi Brenda. Hi I guess you wanted me to put everybody in a good mood 12 speakers that sounds scary. OK so I don't have anything to say except for thank you for this summer. Thank you for the concerts think businesses for the car shows and we'll talk about the silver and gold balloon later but thank you.

UnidentifiedUnidentified speaker 1Proposed17:22

Thank you Brenda.

UnidentifiedUnidentified speaker 2Proposed17:27

Rich Ryle.

UnidentifiedUnidentified speaker 11Proposed17:38

Mayor Wells, members of the City Council, ladies and gentlemen, my brothers of the ring and fellow members of the legendary class of 1969. I am here today as a graduate of The Citadel, the Military College of South Carolina. The Citadel has educated leaders since 1842 Its honor code is simple. A cadet does not lie, cheat or steal and does not tolerate those who do. That code means something to me. Public office is a public trust. It requires honesty to answer the questions of why they tolerate a city manager who has cost this city millions of dollars in damages and potential litigation. Mayor Wells has served on City Council since 2008 Councilmember Kendrick has served since 2002. Collectively, they represent more than 40 years in office. Together they are the strongest argument that can be made for term limits.

These two plutocrats have fostered a city hall culture in which the same people make the same decisions, protect the same insiders and expect the taxpayers to exaim the same results without questions. For approximately 25 years the downtown businesses have paid assessments for car shows, concerts and rigged bids. The voters deserve proof that their millions of taxpayer dollars have produced measurable improvements. Where is the independent study that shows us that for over 25 years storefront occupancy has increased enough to justify the millions of dollars paid for car shows? There is not one study that will show that there has been an increase in the number of businesses in downtown El Cajon for the last 25 years. I was forced to sue the city to grant public access to P-BID meetings.

A private citizen should not have to spend time, money and years of effort to attend public meetings that use tax dollars. In 42 days, El Cajon voters will have a chance to choose new leadership. Alexander Kraft running for mayor, Osama Bayati running in District 1 have both made term limits a priority. They've also called for a full investigation into City Manager Mitchell's unauthorized RFP that steered nearly a quarter of a million dollars in P-BID funds to Marco LaMandri. The voters deserve a city hall that follows the law, protects public money and serves rather than their entrenched interests. Last Tuesday the council approved a new CBD that raises taxes and add news taxpayers to replace the discredited P bid instead of following the law that barred the P bid from creating a new taxing authority.

The council expanded both taxes in the tax base rather than following the law and using the P bids final year to return unspent money to taxpayers they use that money to illegally set up another tax scheme By the time the taxpayers file their lawsuit, Kraft and Beate will be seated on the council closing out the long troubled history of corruption that defined the Wells-Kendrick era of

UnidentifiedUnidentified speaker 2Proposed20:43

governance. Alexander Kraft?

UnidentifiedUnidentified speaker 12Proposed20:58

Sorry I'm tall. Hi everybody! Well, Bill, Halloween's just around the corner and you've been posting a lot about how scared you are of the political movement that I represent. So I thought I'd just come down here and say boo! But no, seriously. You know I've been reading up a little bit and Mr. Wells you used to be a part of a company called Borrego Health which committed health care fraud at a massive scale taking Medi-Cal money for services it never provided but you weren't involved because your company Broadwell Health was structured as just a contractor for Borrego Health But of course, then during COVID your company Broadwell Health got caught taking health money to provide COVID tests that they actually never processed. But that's okay you weren't involved!

That was done by Test SD, which was a division of your company. And you weren't paying attention to what they were doing. And so now we're learning that the Downtown El Cajon Business Partners and Business Improvement District is violating the Brown Act, awarding no-bid contracts to themselves, destroying records, allegedly committing a bunch of felonies. But you're not involved. You're not involved because even though the city created it and has a seat on the board and its offices are in City Hall, It's actually its own independent organization, kind of like how Broadwell was just a contractor for Borrego and how Test SD was just a subsidiary of Broadwell.

And since you're such an honest and upstanding guy it must be very frustrating for you that so many of the businesses and organizations that you're involved with just keep stealing public money. Someone might get the wrong impression about you. There used to be a saying where there's smoke, there's fire. But I wouldn't really know. I leave the investigations like that up to the Fire Department and the fire inspectors who just spoke.

But of course since you cut city fire stations, I guess we won't know for sure until the whole city burns down.

0:23 – 0:3126 turns

UnidentifiedUnidentified speaker 2Proposed23:05

Next speaker is Will Kopach.

UnidentifiedUnidentified speaker 13Proposed23:14

Hello Mayor Wells and City Council, we meet again. To Councilman Gary Kendrick who's not here if you are watching this online please come back as soon as possible the people of El Cajon need you to Mayor Wells and the city council I may be one of your detractors but this time I'm gonna go a bit easy on you I'm going to say some positive things here and there, and then I'll just ask a few couple quick yes-and-no questions. First, I will admit that attending D.C. Council meetings is pretty educational to say the least.

I've learned more being here than, say, being at college classroom learning about local government politics. I also like the air conditioning here and I'll also say you're not Nazis or fascists or KKK members. However, I do think you are incompetent especially on the issue of homelessness and I also think you're unworthy to represent El Cajon. So now that we see eye to eye, let me ask you a few quick questions yes or no questions.

Alexander Kraft out here he wants to debate you as soon as possible will you debate Alex Kraft yes or no?

UnidentifiedUnidentified speaker 1Proposed24:58

That's already been settled, yes.

UnidentifiedUnidentified speaker 13Proposed25:00

The answer

UnidentifiedUnidentified speaker 1Proposed25:00

is

UnidentifiedUnidentified speaker 13Proposed25:00

yes. That's good to hear. Assuming if you win in November will you let a new generation of leadership take over your position in November of 2030? Yes or no? I'm not answering any more of your

UnidentifiedUnidentified speaker 1Proposed25:17

questions, I'm sorry. I did want to set the record straight out of the debate because We've agreed to

UnidentifiedUnidentified speaker 13Proposed25:23

that. So you're not down for

CommentLive NationProposed · by introduction25:27

Mr. Mayor and the council remember this is a time where it's a public comment but not public discussion so I advise you not to respond to this gentleman.

UnidentifiedUnidentified speaker 13Proposed25:37

OK. Well then if that's the case then I'm not going to ask you any more questions but I will say The election is six more weeks. So time's running out, like clocks ticking. Tick tock, tick tock and hopefully we get new leadership in the city of El Cajon because you have failed the city of El Cajon. That's all folks.

UnidentifiedUnidentified speaker 2Proposed26:23

Next speaker, Jeff Lashmott.

UnidentifiedUnidentified speaker 1Proposed26:25

Hello Captain.

PresenterCaptain Jeff Lashmottupdate of my work-related cancerProposedself-stated26:42

Hi as you all know my name is Captain Jeff Lashmott served the City of Elkhorn Fire Department for 30 years I'm here with an update of my work-related cancer. My cancers returned and they started a new treatment regimen a month ago, month and a half ago. The good news, the blood test results are promising that the new treatment is effective. Now the bad news.

This treatment is added to my ongoing side effects that qualified me for workman's comp and disability retirement. I faithfully first served the citizens of the city of El Cajon in their hours or their worst need with empathy and compassion. As you know, the city staff denied my late request for a change in my service retirement to disability retirement. Again, I'll read the law.

section 2 1 1 5 4 on Receipt of the application respect to a local safety member, which I am Other than a school bus driver. I'm a fire captain The board shall request the governing body of the contracting agency, which is the city of El Cajon Employing the member to make the determination Summarize HR and the city manager's response to me regarding this issue. They say they have no responsibility Clearly, they don't understand the law The law states to see has the authority and responsibility to make decisions about my disability retirement Without any contact or explanation to me. They denied my request I'd also like to include their answer to this law when they were asked about would the city accept CalPERS and Would the City of El Cajon object to CalPERS if they accept this member's untimely, excuse me.

Would the City of El Cajon accept, object? I love the way they write these legalese. Would the City of El Cajon object if CalPERS accepts this member's untimely application? Their one word answer was yes after 37 years of service. So clearly they don't understand the law, but they sealed my fate with their one word answer. They say they have no responsibility...

Okay, they sealed my fate with no... Sorry. They sealed my faith that I would not get a disability retirement. My wife said to speak kindly so I would kindly like to mention that the city staff are disingenuous They lack empathy and compassion. They stab me in the back when I ask for their help. They do not follow the same rules and policies I had to follow for 37 years.

I've filed a grievance to speak to the Personnel Commission, they hide behind the authority and deny me access to the Personnel Commission to investigate my concerns. There are hypocrites when they stand up and pledge allegiance to the flag saying justice for all.

UnidentifiedUnidentified speaker 1Proposed29:57

No,

PresenterCaptain Jeff Lashmottupdate of my work-related cancerProposedself-stated29:59

I'd like to finish. Yeah, I feel sorry for the citizens who come here looking for help and answers so they won't help For if you won't help somebody who devoted 37 years of their life to the service of the city You certainly aren't going to help them

UnidentifiedUnidentified speaker 1Proposed30:13

Captain

PresenterCaptain Jeff Lashmottupdate of my work-related cancerProposedself-stated30:13

we have

UnidentifiedUnidentified speaker 1Proposed30:13

to be fair to everybody please yeah Everybody gets three minutes. So I've

PresenterCaptain Jeff Lashmottupdate of my work-related cancerProposedself-stated30:19

filed a proper Grievance and it's been ignored not responded to So do you have any ideas or suggestions how I can get city staff to follow city policy and grant me access?

UnidentifiedUnidentified speaker 1Proposed30:36

Captain, we've talked about this so many times. I think you know what your options are. I appreciate you coming but this is not the time that we're going to litigate

PresenterCaptain Jeff Lashmottupdate of my work-related cancerProposedself-stated30:47

I don't want to litigate it. I want to talk to the City Personnel Commission, which is my right. They've also stated because I'm not an employee, I can't see them. Well their actions happened after I retired so they don't apply the rules equally.

UnidentifiedUnidentified speaker 1Proposed31:00

Captain, I'm sorry we just can't do this here. This is not the place for this.

PresenterCaptain Jeff Lashmottupdate of my work-related cancerProposedself-stated31:04

Well that's the only place I get to discuss my concerns.

UnidentifiedUnidentified speaker 1Proposed31:07

When people are at odds with another organization to this point at some point they hire an attorney and litigating in the courts

PresenterCaptain Jeff Lashmottupdate of my work-related cancerProposedself-stated31:16

I don't need to hire an attorney. I need the city staff to follow policies.

UnidentifiedUnidentified speaker 1Proposed31:19

What I need to do is continue this meeting and you're not being cooperative, you're not being polite. Please sit down.

0:31 – 0:367 turns

PresenterCaptain Jeff Lashmottupdate of my work-related cancerProposedself-stated31:28

You can see how they treat a 37-year employee of the city so good luck if you need help.

UnidentifiedUnidentified speaker 2Proposed31:37

Next speaker is Andrew Lawson.

UnidentifiedUnidentified speaker 1Proposed31:51

Mr. Lawson, welcome.

CommentAndrew LawsonProposedself-stated31:53

Thank you, Mr. Wells. Members of the City Council and the city attorney's office. My name is Andrew Lawson. I'm running for the 79th Assembly District covers a brief portion of El Cajon south of the south of eight. Listen, I'm not a politician. I didn't prepare anything for this meeting. I haven't taken PAC money and I haven't taken any corporate money either.

I can say this, I can share some of the concerns that have already been spoken today but not for this particular city council. There are other politicians in this state as well. I hope that none of that is actually going on and I hope that it's just election season and the propaganda is rampant. Recognize that card stacking is a thing And that's exactly what Mr. Kraft was doing today.

So, I may be a conservative but I'm ready to fight for every single Californian in this room right now. There's unfunded mandates that come down from Sacramento as we've already heard today and it's time this nonsense stops. We have politicians living in Sacramento and they're making more money than any of us and they want more money. They want more money to the tune Trillions of dollars.

They want to raise your property taxes, they want to raise your taxes on your private health insurance and then they sit here and preach about somebody else's problems of affordability. Ladies and gentlemen wake up it's time for a change in California. The Democrat Party has failed us.

UnidentifiedUnidentified speaker 2Proposed33:45

Denly Clauston.

UnidentifiedUnidentified speaker 1Proposed33:55

Hello, welcome.

UnidentifiedUnidentified speaker 14Proposed33:56

Thank you. Good afternoon City Council members and Mayor Wells I am here because I am concerned about a couple of issues that are of importance to my generation and to the people in my community. First is the city's contract with Flock. The city's contract with Flock is extremely expensive costing the city about $2.5-$3,000 per camera This city is already in a budget deficit and should not be spending more money on flock cameras.

Flock cameras also open up the possibility for abuses of power. For example, CNN reported on August 26th about a police officer who used his access to flock cameras to stalk his ex-girlfriend. And if flock cameras are operating within our city that opens up the possibilities Second, I want to talk about the Oklahoma Police Department's cooperation with Immigration and Customs Enforcement.

An analysis by the Brookings Institute found that 0.43% job loss was found in an average of 0.433% decrease in job losses found in cities with large surges Ice officers. This also came with a 6 percent average decrease in consumer spending not only could this negatively impact the economy if it opens the door for an ice surge in El Cajon, it is also in direct violation of Senate Bill 54 which is state law.

The city of El Cajon should not be Indirect violation of state law and the Elkhorn Police Department should stop cooperating with ICE. Lastly this cooperation with ICE also creates a chilling effect for many citizens because it sows mistrust in police officers. Many undocumented citizens or undocumented immigrants may be more afraid to report crimes to police if they believe that police involvement can get them deported.

So in conclusion I believe that the city of El Cajon should cut its flock contract and the El Cajon Police Department should stop cooperating with ICE. Thank you.

not transcribed≈7s of audible speech the AI couldn’t make out▸ listen

0:36 – 0:4311 turns

UnidentifiedUnidentified speaker 2Proposed36:37

Osiel Bakri

UnidentifiedUnidentified speaker 1Proposed36:44

Welcome.

CommentUsaid Alsheikh BakriProposedself-stated36:45

Hello. Good afternoon, Mayor Wells and City Council members. My name is Usaid Alsheikh Bakri. I'm a high school student at El Cajon Valley High School and a member of the Elect Bayati for El Cajón City Council Committee. As part of this campaign, I have been mobilizing students in registering voters. I joined this effort because I believe in Osama Bayati's campaign and his ability to represent my generation's priorities and vision for the future.

I trust him to give young people a voice in local government and ensure that we have a role in shaping the future of El Cajón. I'm speaking today to voice concerns regarding the city's use of Flock license plate cameras and the El Cajon Police Department's cooperation with federal immigration authorities, which conflicts with state law under the California Values Act.

Mass camera surveillance is an invasion of privacy that leaves many residents, including myself feeling watched rather than protected. Automated license plate tracking opens the door to misuse and unchecked data sharing beyond privacy harms spending over $400,000 on flaw cameras places a heavy strain on public funds that could directly help reduce the city's nearly two million dollar budget deficit or support vital community programs.

I am also concerned about local police cooperation with ICE. When law enforcement interacts with immigration authorities, it breaks down community trust. When residents fear that calling 911 to report a crime or request help might lead to questioning or deportation, entire neighborhoods stop communicating with police, ultimately making our city less safe. I urge our city leaders to take these concerns seriously and thank you for your time.

UnidentifiedUnidentified speaker 2Proposed38:25

Mayor, we have four more speakers. Next speaker is Serene Norton.

UnidentifiedUnidentified speaker 1Proposed38:44

Hello. Hi. Pull it down now.

UnidentifiedUnidentified speaker 15Proposed38:50

Good afternoon to everyone in the room Recently, I had to avail of medical services in the city of El Cajon. For example, flu vaccine. At each location, I had to fill out a form. One of the questions in those forms were what is your race? I responded, Pacific Islander. The next question after that was what is your ethnicity? My ethnicity is Chamorro but for some reason Guamanian slash Chamorro was what was presented on those forms, every form.

Guamanian is not an ethnicity under the Pacific Islander race category. It is a demonym. The true and rightful ethnicity under this particular Pacific Islander race category is Chamorro, and only Chamorro. By allowing the demonym Guamanian as an option alongside the true ethnicity of Chamorros on these forms, even though Guamanian is not an ethnicity, is an erasure of true Chamorro history and identity. It is a form of ethnocide of the Chamorro ethnicity.

The state of California, county of San Diego, the city of El Cajon Is aware that the term Guamanian is a demonym and not an ethnicity, yet it continues to allow it to exist under an ethnicity category. Thank you.

UnidentifiedUnidentified speaker 1Proposed40:58

Thank

UnidentifiedUnidentified speaker 15Proposed40:58

you.

UnidentifiedUnidentified speaker 2Proposed41:02

Scotty Hill. Is Scotty Hill here? OK.

UnidentifiedUnidentified speaker 1Proposed41:18

Sure bring it up.

UnidentifiedUnidentified speaker 16Proposed41:28

Hi welcome. What do you want me to say. Oh your time. Oh Scotty Hill I'm a student from Fall Hollow High School I'm here for this assignment called GIA El Cajon City Council. Don't cry. For approximately years, they received tax proof increase in the number of money where citizens can save up money. The voters deserve rights as they follow laws. The taxpayers use higher taxes to use on higher prices with tax on their prices.

So many businesses have spoken for themselves on them with different government groups. The citizens of El Cajon read laws of receiving safety agencies so the people are employed on companies where when they follow laws, the city of El Cajon objects year of service when they speak kindly about following policies that people have to be helped if they do not know how.

A couple of issues of our generation is the city's lack and need to save money for things they really need to use for. The Analysis Institute can, with a degree of consumer spending El Cajon Police Department should stop cooperating with the ICE agents for criminals that are being falsely convicted. An invasion of privacy spends about four million cameras for one that are scammers so we have to call police to help save us and save money on cameras for safe identity.

Good job. Thank

0:43 – 0:5017 turns

UnidentifiedUnidentified speaker 2Proposed43:19

you. Osama Bayati.

UnidentifiedUnidentified speaker 1Proposed43:31

Hello, sir. Welcome.

UnidentifiedUnidentified speaker 17Proposed43:33

We saved the best for last. OK. Just whenever I start, right?

UnidentifiedUnidentified speaker 1Proposed43:41

Oh, just whenever you're ready.

UnidentifiedUnidentified speaker 17Proposed43:42

All right. Osama Bayati, candidate for El Cajon

UnidentifiedUnidentified speaker 1Proposed43:47

City Council. Can you bring the microphone so we can hear you? Yes. Is that better? Yes, much better. Thank you.

UnidentifiedUnidentified speaker 17Proposed43:54

Osama Bayati candidate for El Cajon City Council District 1. I am here today to speak directly to the mayor and council about the example your leadership has set for my generation and the consequences it has had for our city. Mr. Mayor, this is a photograph of you and I when I was 16 years of age. It was taken right here when you publicly recognized me with a Certification of Achievement from my Homelessness Research Project through the GCI at Harvard University.

At that time as a young boy coming from poverty, I saw you on the board as the embodiment of the kind of leaders I hoped to someday become. I pictured you as the defenders of dignity, people willing to fight for those whose names you may never hear. This is what I thought a politician was. However, I then grew up. I read books like Ron Paul's The Revolution and discovered partisan tribalism.

I began to understand why division has become the refuge of leaders who have run out of results. I now point to this council as a case study in how much political tribalism can consume the very institution entrusted With the future of our children. Since we took that photograph, the city of El Cajon is yet to see meaningful increase in population as over 5,000 residents have moved out. Our workforce has shrunk and we have built the fewest homes per capita in the entire county.

Meanwhile, our expenses have outpaced our revenues for four straight years leaving us with a 1.4 million budget shortfall enforcing 2.5 million in internal department cuts just to stay above water and yeah Taxpayer dollars are being poured into national political lawsuits drawing attention far beyond El Cajon while challenges at home remain unsolved. This board has refused to comply with state law in pursuit of headlines, using City Hall as a platform for stunts and political theater despite countless advocacy by local leaders and the establishment of new state law to finally count Middle Eastern and North African residents who still refused to give Arabs, Chaldeans and Kurds a simple checkbox on city forms. Choosing instead to push divisive symbolic cultural resolutions that target them instead.

My initial councilman Councilman Kendrick the mayor of Santee John Minto personally told me that you switch political parties after realizing the Republicans were not going to endorse you So you became a Democrat, yet despite numerous Democrats urging you not to criminalize speech regarding the state of Israel by framing it as anti-Semitism. You and Mayor Bill Wells lobbied this council to pass it.

I want the audience to understand that I refuse to be the messenger of despair and I'm confident for the future that lies ahead because this type of leadership is a dying breed of men, and you will be replaced. I look around today and I see a new generation of leaders instinctively rejecting inherited indoctrination and carrying the potential to shape a future unlike any that has come before it. Their willingness to question beliefs previous generations never imagined challenging is the source of my hope.

Thank you.

UnidentifiedUnidentified speaker 2Proposed47:00

Mayor, the last speaker is a remote comment so we will give Ms. Melanie Bennett just a couple seconds to sign in.

UnidentifiedUnidentified speaker 1Proposed47:17

I'm sorry who are

UnidentifiedUnidentified speaker 2Proposed47:19

we waiting for?

UnidentifiedUnidentified speaker 1Proposed47:31

Well, looks like the person's out here.

UnidentifiedUnidentified speaker 2Proposed47:34

Ms. Bennett if you can hear us press star six. Oh

UnidentifiedUnidentified speaker 1Proposed47:39

it's on the

UnidentifiedUnidentified speaker 2Proposed47:40

phone. Please go ahead.

UnidentifiedUnidentified speaker 18Proposed47:44

Can everyone hear me?

UnidentifiedUnidentified speaker 13Proposed47:52

We can hear you.

UnidentifiedUnidentified speaker 18Proposed47:56

Just thank you for the time and hello to everyone in this room. I want to absolutely agree that the police should not salute with ice, I have an example for you. First of all City Heights has been recently attacked and parents being taken from elementary school people being picked up in a violent way And I was at the rally last Wednesday, and it was phenomenal by the way. 300 people got together in one day. Amazing! Even the mayor went there but also of course it was a council member, Ilo Rivera who did a phenomenal job. But my point is I spoke to someone who saw the most recent horrendous attack and grab and kidnapping. I have to say that we're sorry but that's how it feels like everyone watching There was an accident, a three-car accident because of that because ICE agents were swarming.

Those three cars left. They did not do anything except leave the area out of fear. Normally what you'd do is three car crash, let's call the police, let's get them help if anyone injured or let's get insurance. They couldn't do that at that point because of the scare tactics that are going on. So just those three things We need ice out of the home that's happening right now here in El Cajon.

We don't need block cameras, that is very intrusive and then we need to take an example City Council member who got his community together with speech after speech after speech. Also the police participated by holding the cars back and we were able to do a rally and walk down the street to the Euclid Elementary School. It was beautiful, it was beautiful. And that's what we want. We want our community to get together. Together, together we can take care of each other. We need to take care of each other. So thank you and I love Eleanor Roosevelt A quote ending with, use your heart. Thank you.

0:50 – 0:5619 turns

UnidentifiedUnidentified speaker 1Proposed50:16

Is that the end of the public comment? All right there are no written communications on today's agenda we have one public hearing on today's agenda item nine is to consider issuance of taxes and bonds for the Bella Vista apartments by the California Municipal Finance Authority and staff you'll tell us about this please

PresenterJose DoradoHousing Division under the Development Services DepartmentProposedself-stated50:59

Good afternoon mayor and council members. I'm Jose Dorado, housing manager with the Housing Division under the Development Services Department. Today we'll be presenting agenda item number nine, the Tax Equity and Fiscal Responsibility Act public hearing for the Bella Vista Apartments. A summary of today's presentation includes a brief description of the request to conduct this public hearing, a description of the proposed project as shown on this slide and the City's Council role.

This slide includes a background of the Bella Vista Multifamily 150 Unit Housing Project It has been operating as a deed-restricted multifamily housing project for over 28 years with 10% of the units restricted at 50% of the area median income, which is 15 units. And then the remaining 90% of the units at 60% of the area median income, which represents 134 units, as well as a manager unit and the project includes two and three bedroom units.

This is an aerial slide of the project. It's located at the corner of North Mollison Avenue and East Madison Avenue. This slide includes a brief description of the bond issuer's role for the project financing. California Municipal Finance Authority is the bond issuer for this project, also known as CMFA. This slide includes a summary of the proposed rehabilitation to the Bella Vista apartments, including updates to the units to make them ADA compliant to today's building codes. That would include 10% of the units being fully accessible and 5% visually and hearing and visually impaired.

Staff recommends the following actions as part of the City Council's role for this staff report. Open the public hearing, accept testimony from the public, close the public hearing and adopt a resolution approving the issuance of bonds in an amount not to exceed $15 million dollars. The city bears no liability with respect to the issuance of the bonds and there's no impact to the general fund. All costs are between the bond insurer, CMFA and the borrower.

Anthony Stubbs from CMFA and JP Stocco representing the borrower from Bella Vista Apartments earned the audience. That concludes my report. Both staff and project representatives are prepared to respond to questions or comments. Thank you. Thank you. I support questions. Michelle?

UnidentifiedUnidentified speaker 19Proposed53:49

Hi, thank you for the report. What is our cost? What is our portion of this bond? Do we have any fiscal responsibility?

PresenterJose DoradoHousing Division under the Development Services DepartmentProposedself-stated54:00

The city has no financial interest in this bond issuance. We're simply conducting the public hearing.

UnidentifiedUnidentified speaker 19Proposed54:05

Okay, and these are the apartments right behind where the pharmacy is, the rent-a-income. You had to meet a certain income to be there.

PresenterJose DoradoHousing Division under the Development Services DepartmentProposedself-stated54:22

Correct. So there are income their income restrictions right now currently on the project

UnidentifiedUnidentified speaker 19Proposed54:27

so they're right there on on Mollison and right behind them is the pharmacy and Mollison I think it's Molly. Yeah OK so now we know where it's at and they want to renovate Upgrade and then how what are the rents going to be? Are they going to be Limited to compare. I'm sorry one of those days Are there rents going to be Based on their income

PresenterJose DoradoHousing Division under the Development Services DepartmentProposedself-stated54:57

correct. They're currently rent restricted so the rent restrictions will still stay in place

UnidentifiedUnidentified speaker 19Proposed55:01

Okay,

PresenterJose DoradoHousing Division under the Development Services DepartmentProposedself-stated55:01

but with this type of financing it allows A complete renovation of the project as well as extend affordability covenants on the property for an additional 55 years.

UnidentifiedUnidentified speaker 19Proposed55:12

Okay, great because it does need it. I've known people who have lived there so it's definitely in need of an upgrade. So thank you very much for the info. Thank you.

UnidentifiedUnidentified speaker 1Proposed55:23

More questions? All right thank you appreciate that. The public hearing is now open. Angela do we have any speaker cards?

UnidentifiedUnidentified speaker 2Proposed55:31

There are no speaker cards for this item sir.

UnidentifiedUnidentified speaker 1Proposed55:34

I'd like to make a motion to close public hearing. Please vote.

UnidentifiedUnidentified speaker 2Proposed55:50

Motion carries by unanimous vote of those present.

UnidentifiedUnidentified speaker 1Proposed55:53

Back to the City Council now for discussion or questions unless somebody would like to

UnidentifiedUnidentified speaker 20Proposed55:59

Now I'll make a motion to conduct the TEFRA public hearing and also make an additional motion to adopt the resolution as outlined in staff report for the issuance of bonds.

UnidentifiedUnidentified speaker 11Proposed56:10

Second.

UnidentifiedUnidentified speaker 20Proposed56:11

Moved and seconded, please vote.

0:56 – 1:064 turns

UnidentifiedUnidentified speaker 2Proposed56:19

Motion carries by unanimous vote of those present.

UnidentifiedUnidentified speaker 1Proposed56:26

We have five administrative reports on today's agenda. Item 10 is for the fiscal year 26 financial performance at the Magnolia, and staff will tell us about this.

GuestRyan Villegas I'mCity ManagerProposedself-stated56:56

Hello good afternoon Honorable Mayor and City Council. My name is Ryan Villegas I'm a senior management analyst in the city manager's office and today's report is a financial update for fiscal year 2026 over at the Magnolia which concluded this last June following my portion of the presentation I'm going to invite up Paris Landon she is the general manager of the Magnolia and she'll provide review of this past year's shows and events what's in store And then also some insight into our customer base.

So I thought I'd start with a brief background the venue operated historically as these county performing arts center and was closed in 2009 during the Great Recession It reopened 10 years later as the Magnolia with Live Nation as the operator. The first few months were promising and then COVID of course forced the closure of the venue, and then in fiscal year 2022 the recovery really began. And so this report is going to be covering the five-year period since then.

The operating agreement was amended in 2025, and then we're going to revisit that in just a few slides. That provides important context for the financial results. And then earlier this year Live Nation exercised its renewal option and extended the agreement for five additional years through 2031. All right. The management agreement between the city and Live Nation includes annual goals for the number of shows and events per year. The teal bar represents the targets and then the navy blue on the right is the actuals.

So the venue exceeded its target in each of the first three years growing from 60 events in 2022 to 91 in 2024. And then you can see a slight dip in 2025 so coming away from COVID the industry saw a surge in bands who were excited to get out and tour And then fans who are also eager to get out and see live entertainment. And that's reflected in this trend slowed in 2025 so that's reflected in that number and in 2026 activity stabilized and the venue closed out at 89 events meeting the target for that year.

Attendance tells a similar story you can see that the attendance grew steadily from 22 to 24 Before declining a little bit in 25 and then a rebound in 2026 closing out just about 49,300 beating or exceeding the target for that year. All right so moving to financials this slide shows the adjusted operating income or AOI which is revenues minus expenses from FY 22 to 24 actual output outperformed the original forecast And remained relatively consistent.

FY 25 was a significant departure from that with AOI following to a loss of approximately $204,000 or an apparent difference from the year before of about $450,000. So while this decline is in the same fiscal year that we saw the reduction in shows and attendance that we mentioned earlier, we do need to discuss the change in the operating agreement that took place in fiscal year 2025 which drives a significant portion of this drop that you see. And then it also leads fiscal years 25 and 26 to not be like direct apples-to-apples comparisons to the years prior.

So the amendment to the operating agreement took place in fiscal year 25 did three things it redefined the break even point. It redefined the profit sharing and then it transferred utilities repairs and maintenance over to Live Nation which the city had previously been paying separately so before a breakeven was defined as any amount over zero dollars in live nations AOI and then profit sharing began at the forecast forecasted AOI At a 70-30 split with the city receiving 70 percent and then Live Nation 30 percent. And then 50-50 above break even so I'm going to advance to the next slide for just a moment if I can show you what that looks like.

So I know this slides pretty busy but I will guide you through it. So this is actually the same AOI slide that we were looking at previously but it just adds different aspects of the amendment that we're talking about. So on the left hand side you can see the profit sharing percentage is added And then the zero dollar line the horizontal one in the middle. That's the previous break even point under the prior agreement and then also I've added a vertical dashed line that separates prior and post agreements so amendments. So since the teal bar so looking at the left side since the teals bars show the forecast and then the navy blue show the actuals for that year or any given year, essentially as long as the navy blue bar comes in above the teal bar then profit sharing would happen previously.

And so the city would owe Live Nation 30% of the forecasted amount and then 50% of the actual amounts. So I'm gonna go back to the last slide for a moment. So aside from profit sharing, the city still paid previously paid the fixed management fee of $375,000 separately And the city also paid utilities repairs and maintenance. So after this amendment the break even was redefined as any amount over zero dollars in AOY but including the management fee now and then the profit sharing only happens after or above breakeven at 50-50.

And then next the management fee was increased to $400,000 in fiscal year 25. And with the 3% escalator. And then finally, utilities repairs and maintenance which had previously been paid by the city were added to Live Nation's operating costs and then giving us a better understanding of the full operating cost of the Magnolia and its overall financial performance but now using the AOI.

OK, so returning to this slide. So now looking at FY 25 in comparison to 24. So while some of this drop from 24 to 25 is attributed to the fewer shows and attendance mentioned earlier, this is the first year that the amendment took effect and this number therefore includes utilities repairs and maintenance. So for FY 25, that was approximately $350,000. And this does include $130,000 approximately in expenses for venue improvements. Last year that was the security fence and then enhancements to the backstage area, the bar area and the VIP area.

And then before we go to FY 26, let's look for just a moment at what's labeled illustrative AOI for fiscal years 22, 23 and 24. So that's the navy blue bars with the hashes through them. So they show AOI estimates for those fiscal years if the amendment had been in effect for those years. However, these are just estimates because the utilities were transferred over to Lime Nation over the fiscal years. It didn't all happen at once and so that's why it's just an estimate. It's not a full comparison.

So now finally looking at FY 26, the actual AOI. You can see that the venue improved from FY 25 and returned to positive territory at approximately $44,000. It remains below the forecast for the year but it's an improvement of approximately $248,000 from the year before. And here we have the utilities and repairs and maintenance for FY 26. So you can see that it came into approximately three hundred and twelve thousand dollars with 86 percent of that being utilities alone. And then the remaining costs were made up of various repairs and replacements at the venue.

All right so now we can put all these pieces together and look at the venues financial performance against a break even threshold With the amended operating agreement, the management fee now represents that break-even threshold which for FY26 is the $412,000 you see up there and that's because of a 3% escalator. And so here are a few key takeaways. So fiscal year 26 showed a significant rebound from the prior year with the actual AOI returning to positive territory at $44,438.

An improvement of approximately two hundred and forty eight thousand dollars. So while this represents a meaningful year over year improvement the venue still remains to below the break even threshold with a gap to break even three six three hundred sixty seven thousand five hundred and sixty two. So while you didn't reach breakeven and there was no profit sharing FY 26 still represents a significant improvement from the year before.

So with that I'll conclude my portion of the presentation I'll invite up Paris Landon to talk about the year review for the Magnolia.

UnidentifiedUnidentified speaker 1Proposed1:06:27

Thanks. Appreciate that. Hi Paris

1:06 – 1:125 turns

CommentParis LandonProposedself-stated1:06:35

Mayor and city council members thank you for having me my name is Paris Landon and I'm the general manager of the Magnolia The last year showed significant year over year improvements for the Magnolia. We hosted 89 events and finished the year with approximately 44000 in positive A.I.. An improvement of about two hundred and forty eight thousand compared with the last year. The programming mix remain diverse with artists and events ranging from Bella Fleck and Macy Gray to Aziz Ansari Angela Aguilar the roots dance legend Derek Huff and film based events with Cameron Crowe and John Cusack That variety continues to demonstrate the versatility of the venue and our ability to attract different audiences and performers.

This heat map helps demonstrate that the Magnolia is serving both the local community and the broader Southern California market. The majority of ticket buyers are coming from the surrounding zip codes so there is clearly a strong local base. At the same time, approximately 9% of purchases are coming from Los Angeles and another 9% are coming from outside the immediate region.

Not shown on this map are sales into Mexico however we believe our Latin shows draw from Tijuana and beyond as well. The venue is not only serving residents it is also bringing new visitors into El Cajon who can support nearby restaurants businesses and the local economy. One of the Magnolia strengths is the building has been used for much more than just traditional concerts. Last year we hosted a broad range of community and special events including Mayor Wells with the San Diego Rescue Mission, Haunted Circus as part of Haunt Fest, several multi-day dance competitions, the Science and Engineering Fair Awards, San Diego Gay Men's Chorus, and The Nutcracker. These events expand the venue's role in the community while also maximizing the utilization on the calendar.

The Magnolia has a focus on being part of the community, not simply a building where people come for a show. These community activities give us opportunities to be visible outside the venue, build relationships with residents and local organizations, and reinforce that the Magnolia is a community asset. As in previous years we were proud sponsor of the El Cajon National Little League, and recently we also got to participate at the downtown El Cajon Business Partners Alley Cat Art Fest.

Looking at guest feedback, what really stands out is how consistent the positive themes are. People repeatedly mention how easy the venue is to access from free parking to a smooth entry and exit experience. We also hear a lot of praise for the staff who are described as friendly helpful and welcoming sound quality and acoustics come up again and again along with intimate feel of the venue strong sight lines Comfortable seating and cleanliness.

Overall, the feedback reinforces the guests see the Magnolia as an easy welcoming and comfortable venue. In addition to guest comments online we also survey all ticket purchasers to gain insight into what they liked and didn't like at the venue. Every ticket purchaser who provided an email address is emailed a day after the show through Qualtrics. Here is a detailed look How guests rate us in categories from staff to food and beverage, and you can see overall the venue scores are very strong.

This slide brings a survey results down to the headline numbers where you can see Magnolia is consistently favored by both fans on Google and our internal Qualtrics survey. Our team is always looking for new initiatives to increase guest satisfaction and drive revenues. One new initiative was a post-show fiesta we activated at 16 shows targeting performances where the audience profile and ticket sales suggested it would resonate. The goal is to extend the guests experience beyond the end of the performance by offering food and drink specials along with live mariachi and other post show entertainment. This is a good example for ways to create a more complete night out at the Magnolia rather than having the experience end as soon as the artist leaves this stage.

We also introduced a new lobby vending machine in March of this year. It gives guests a convenient way to purchase non-alcoholic drinks and snacks without having to wait in a bar line, a suggestion from Councilman Steve Goble. It is also especially useful during rentals where full concessions operation may not be running. It is a relatively simple improvement but it addresses convenience, guest service and incremental revenue at the same time.

You can see the vending machines top sales are water, Sour Patch Kids and Red Vines. Looking ahead the momentum continues into the new fiscal year. We already have 55 events booked through January with another very diverse lineup that includes The Fix, Grupo Duello, Liz Fair, Mark Marin, Jodeci, Matute, Iron and Wine as well as many others. Jeff Curry already has a sold out three night run in January which is a strong example of demand for comedy at the venue.

We also continue to build the special events business, including returning clients like Jive Dance and Divine Mercy along with new clients such as Wholehearted Chorus. Taken together this past year reflects meaningful financial improvement, strong guest satisfaction, continued community engagement and a solid pipeline of events for the new fiscal year. Thank you.

UnidentifiedUnidentified speaker 1Proposed1:12:32

Thanks. Let me see if the Council has any questions for you? Any? Well, thanks. I want to thank you for all the great work you do. I really love going on the shows.

CommentParis LandonProposedself-stated1:12:44

Thank you. I love working

UnidentifiedUnidentified speaker 1Proposed1:12:45

there. You really put on great shows and please give our best to the entire staff.

CommentParis LandonProposedself-stated1:12:52

Will do. Thank you.

1:12 – 1:2217 turns

UnidentifiedUnidentified speaker 1Proposed1:12:56

Okay then. Angela, would you have any speaker

UnidentifiedUnidentified speaker 2Proposed1:13:00

cards? No speaker cards sir.

UnidentifiedUnidentified speaker 1Proposed1:13:02

All right it's back to council for discussion or a motion. Can

UnidentifiedUnidentified speaker 9Proposed1:13:09

we go back to slide 19? What a great idea. You're right, how to make this more, get more value out of what's already there. And I think you're right. People don't want it to be over when the show is over. There's more to go outside and when you have something waiting for them, perfect, perfect, perfect. Slide 20, the next one. Thank you, thank you, thank you for not making somebody wait in line for something as simple as a snack or water things like that. So this is incremental money, this is what we're trying to get every dollar that we can out of this. Well done.

Ryan I have a question for you on slide 10 or comment there okay so let's take a look at the right hand side $44,438 and in the middle is $249,087 but the 249 We parked $300,000 of utilities somewhere else in the city's budget. which allowed that to look like it was a $250,000 profit when it really wasn't. The $44,000 one includes $312,000 so they're not apples and apples if you were to take the 44,000 on this side and add 312 that would be you know compare or take 249 and knock off 350 or something like that.

We're getting closer, and I really appreciate your effort to clearly show this to the Council. Where do we stand financially with the Magnolia? And it's really doing much better. The effort to get shows—if you've got 56 shows booked between now and when next July?

not transcribed≈10s of audible speech the AI couldn’t make out▸ listen
CommentParis LandonProposedself-stated1:15:10

The end of the last fiscal year so July 1st through January

UnidentifiedUnidentified speaker 9Proposed1:15:15

through January.

CommentParis LandonProposedself-stated1:15:15

So not the full year just through

UnidentifiedUnidentified speaker 9Proposed1:15:17

January. So 56 and last year we had 89 I think it was events. So you've already booked 56 just in six months.

CommentParis LandonProposedself-stated1:15:26

I think it's 55 55

UnidentifiedUnidentified speaker 9Proposed1:15:28

OK hopefully somebody didn't just cancel I think you're doing a fantastic effort, way to get more value out of this. Now if we can just get Mark LaMandri at the table to get the downtown business partners interested in getting some of this value then we'll really hit home run on this but well done.

CommentParis LandonProposedself-stated1:15:46

Thank you.

UnidentifiedUnidentified speaker 1Proposed1:15:48

Anybody else? Okay. You know I just want take this moment to say if you look back in time a little bit there was a time when the magnolia was Not being run by a group like Live Nation and people coming back to us every year for $500,000 to $800,000. And we would get three to four shows a year I think we're going in a much better direction and you know it's not always The most cost-effective decision to have a theater in your town, but there are some things that just are quality of life issue. And I think if we can do both, we can move towards that break even point and provide the great entertainment and support the downtown businesses and increase our quality of life, we're doing something right. So thank you for being part of this process.

You can sit down. All right. Again back to council for more discussion or and like to make a

UnidentifiedUnidentified speaker 21Proposed1:16:54

motion. Make a motion to receive the report.

UnidentifiedUnidentified speaker 1Proposed1:17:01

I moved the second and please vote.

UnidentifiedUnidentified speaker 2Proposed1:17:08

Motion carries by unanimous vote of those present

UnidentifiedUnidentified speaker 1Proposed1:17:11

now if I could have the indulgence of the audience I'd like to move something out of order and go to number 20. And Mr. Goble is gonna lead us in that discussion.

UnidentifiedUnidentified speaker 9Proposed1:17:24

Thank you, Mr. Mayor. Let me get my screen up. Since the late 1800s, the Fletcher family's roots were established in El Cajon with Colonel Ed Fletcher and today many of the landmark still bear the Fletcher name. Fletcher Parkway, Fletcher Hills Elementary where I went to school Fletcher Parkway, of course. Fletcher Hills Shopping Center up by Denny's and Smart & Final. And of course the whole community of Fletcher Hills.

Developed by Colonel Fletcher starting I think in the late 1920s. And for a decade, a sign kind of like well this is the newer version of this sign welcomed people to Fletcher Hills coming up from that alley floor up the hill into Fletcher Hills at the West Wind Hacienda stoplight. This is a renovation or replacement restore renewal done by an Eagle Scout project Perhaps 10 years ago or so, give or take.

And in a similar way there used to be a sign over in the I'll call it the west side of the city over by Chatham and Fletcher Parkway that would welcome people to Fletcher Hills as well but as time has gone on that sign just fell into age, I guess you would say and it just didn't last. So fast forward to today and we've got the Fletcher families interested in restoring that welcome sign to people in Fletcher Hills over at that part of the city.

We've got the Kiwanis Club of Fletcher Hills interested and we have an Eagle Scout candidate who would be Constructing and overseeing the project of this sign. Now, here is the rub. Historically what city policy says anytime a private party wants to put a sign or structure on the public right-of-way we have required a whole harmless or indemnification agreement For good reason in many cases. If a homeowner's association wants to put up a map of its property on a big board showing where the streets and units and buildings are, and they put it next to a sidewalk if somebody were to run into that sidewalk the city could be liable for damages and injuries because that sign was in the city right away which is 10 feet from the curb In this case though, this sign would be probably at least 15 feet and we're getting an image up here pretty soon.

This sign would be at least 15 feet east or away from the sidewalk similar to the existing sign in Fletcher Hills. Here's kind of a mock-up. You can see there's no sidewalk, so there's nobody who is going to be on a scooter riding by or a bicycle or pedestrian. The liability here is low compared to other monument signs that we have in the city such as the Jimmy Johnson sign in the median of 2nd Street or the Taylor Guitar Welcome Sign which is just off the street on Cuyamaca.

So what I'm asking for the council to do today is to waive the requirement that forever in perpetuity, the people establishing this sign be responsible for the liability related to it. For this and the civic value of the sign is different than a homeowners association sign for instance. This sign is well off the beaten path, this sign is elevated so I don't anticipate Thank you very much.

Asking the council to weigh in on this. We've got some speakers I think from the Fletcher family, from the Eagle Scout candidate herself, to tell them about that part of the project but this is kind of a one-off for me. There are probabilities and there are possibilities. Is it possible someone could hit that sign? Yes. Is it probable even less probable than hitting the current Jimmy Johnson sign on Second Street or the Taylor Guitar welcome sign And that's kind of where I'm landing with this and I will give that to the council at this point.

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1:22 – 1:2816 turns

UnidentifiedUnidentified speaker 20Proposed1:22:41

Community wants to come in, donate a sign in that area and the ask is that the city would then take responsibility for it once it's installed?

UnidentifiedUnidentified speaker 9Proposed1:22:54

Yes. If a private party puts a sign in the public right of way, it must provide the city with indemnification if anything ever happens because that sign is there. The city's not responsible financially. In this case, I think that's too big of an ask given the placement of the sign, kind of sign and the public purpose of the sign. So I'm asking for a waiver for that in this particular

UnidentifiedUnidentified speaker 20Proposed1:23:23

project. And are you asking for the grant of the waiver now or for staff to put something together to present?

UnidentifiedUnidentified speaker 9Proposed1:23:29

I would want the staff to know the council is leaning but they would come back and say well these are our conditions that we would recommend We're going to Flushing out.

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CommentLive NationProposed · by introduction1:24:00

Well, we the council doesn't have the ability just to waive a requirement at this time I think there's some mechanism mechanisms Mechanisms to make that happen what staff can do is bring forward those mechanisms and they could range from changing the policy completely to finding a provision for a waiver but that waiver would have to have a finding of why that would But I'd also like to know my colleagues' questions or concerns so that staff has a full

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UnidentifiedUnidentified speaker 9Proposed1:24:55

Understanding of our collective thinking or leaning

UnidentifiedUnidentified speaker 1Proposed1:25:00

on this. So, our main concern would be that a car would drive into it and get somebody to get hurt?

UnidentifiedUnidentified speaker 9Proposed1:25:10

No, no I'm just saying the probability of this sign causing an injury is low. Yeah it seems really low. Can you mitigate that with materials Yeah, I think I'll leave that discussion up to the family and the proponent to describe the materials and construction. It seems to me like you could mitigate

UnidentifiedUnidentified speaker 1Proposed1:25:33

some of that risk. Yes.

UnidentifiedUnidentified speaker 9Proposed1:25:35

And this kind of sign already exists on Fletcher Parkway going up the hill in a similar fashion about that far off the street and about that high up off the street. And we do own or we do have a similar sign already in place. Great. Let me see if there's any, oh go ahead.

UnidentifiedUnidentified speaker 20Proposed1:25:54

I have one more comment just to kind of opine a little bit to kind of get my perspective. You know we have a group that is going to manage the project. We have a group that's gonna pay for the project and the only thing that's in the way is the government. Is that the crux of this. OK yeah that seems I mean we got to find a way to fast track when community groups pull everything together and they can take care of it.

The organization or multiple groups of organizations are organized. They have a plan and it's not haphazard and shooting from the hip, maybe we can come up with some kind of creative way to say yes. Not a no but a yes but maybe just do these two things instead of these nine things so that's kind of where I'm at. Thank you.

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UnidentifiedUnidentified speaker 1Proposed1:27:06

Okay sounds good. Are there any speaker cards on this side?

UnidentifiedUnidentified speaker 2Proposed1:27:09

Yes sir, we have two and they've asked that they want to speak together. And that would be Lila Haley and Garrison Fletcher. Great.

CommentLila HaleyProposedself-stated1:27:31

Hi

UnidentifiedUnidentified speaker 1Proposed1:27:32

welcome.

CommentLila HaleyProposedself-stated1:27:33

My name is Lila Haley. I'm from Troop 324, which is located out in Fletcher Hills. I've been scouting, which is formerly known as Boy Scouts of America for since 2018 since they allowed girls in. I am currently an Eagle candidate and my project would be the Fletcher Hills sign. Through scouting I've grown like my communication skills, my leadership skills and I'm currently working on my fourth year staffing a training camp for youth.

And I chose this project because I wanted to make a lasting impact on my community and also my family has been a long part living in Fletcher Hills and my troop is located in Fletcher Hills so it's part of the reason why I wanted to choose this project.

1:28 – 1:3324 turns

CommentEl CajonProposed · by introduction1:28:20

Right,

CommentLila HaleyProposedself-stated1:28:22

yeah. So we had an architect construct the layout of the sign and we had to work on wind load and the slope of the hill that we'd be putting it on to make sure that it wouldn't fall over if there were like heavy winds. The columns themselves are made of mostly concrete. The outside is a veneer of stone and the sign itself is made of redwood.

UnidentifiedUnidentified speaker 1Proposed1:28:54

Any more? Sorry.

CommentEl CajonProposed · by introduction1:28:56

Yeah, so I'll just add there's a lot of details that you're not seeing here. There are plans that are drawn up. There has been a whole schematic. The person who did the previous sign that's coming up, Fletcher Parkway from El Cajon is also working on this to support them. So there are some considerations, of course and some minor details to work out. I really appreciate Steve Goble in taking this on Emotional guy, sorry.

I was a scout as a kid as well so I know the value of it. As in Troop 360 also in Fletcher Hills my brother's an Eagle Scout and I just noticed what being an Eagle Scout has done for him And what it can do for somebody that's doing that. And so I'm here to support her efforts in doing that. I appreciate your discussion on what that looks like and how we could possibly find a way one thought that I had that may help and that is this isn't a new sign. It's a new sign now however growing up there was always a sign there. There was always a sign coming from Fletcher Parkway going north in effect in that stretch going towards the east. There was a sign there before, so this isn't brand new.

UnidentifiedUnidentified speaker 1Proposed1:30:13

Can I ask you a question? Was it in that exact location?

CommentEl CajonProposed · by introduction1:30:17

I don't know if it's at an exact location my personal memory and I could be incorrect but my personal memory it was coming up before you get to Amaya on that right side and I could be wrong right across from the junior high school there north.

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UnidentifiedUnidentified speaker 1Proposed1:30:33

I'm not sure it matters. Would be another argument. Well

UnidentifiedUnidentified speaker 9Proposed1:30:39

I'll jump in if I could. It was across the street across Chatham kind of where the original location was talked about a fire recall which was really just about two feet from the sidewalk edge and now we're quite bit so this is actually a safer location than the original side which was about 100 feet south.

CommentEl CajonProposed · by introduction1:31:00

Gotcha. Thank

UnidentifiedUnidentified speaker 9Proposed1:31:00

you.

CommentEl CajonProposed · by introduction1:31:02

So again, there was a sign there before. So that may assist in items that you're looking for for what those different options are for grandfathering it or something of that nature. But I just want to point that out this is not a brand new sign that we're asking somebody to do. We're wanting to bring it back so that people can remember the heritage where it came from et cetera. So I appreciate your time and consideration.

UnidentifiedUnidentified speaker 1Proposed1:31:26

Thank you very much both of you. And are you an Eagle Scout? Not yet.

CommentLila HaleyProposedself-stated1:31:32

Not yet, this would be my project for me to get

UnidentifiedUnidentified speaker 1Proposed1:31:35

there. So how many more years do you think before you achieve your Eagle Scout?

CommentLila HaleyProposedself-stated1:31:43

So I am 17, and I have until July 15 of 2027 to get my Eagle Scout. And I would hope to finish this project significantly before then.

UnidentifiedUnidentified speaker 1Proposed1:31:53

OK,

CommentEl CajonProposed · by introduction1:31:54

wonderful. All right, thanks for letting us know. Yeah, so it is correct. So she would not be able to get her Eagle Scout if this doesn't happen within that time frame. So it is time sensitive, and we appreciate you doing that. We also understand there's a pilot upright. A process of doing that but yeah, that's why we're here today And we appreciate Steve Goebel's efforts and getting us to allow us to come and speak to you today

UnidentifiedUnidentified speaker 1Proposed1:32:15

Indeed. Well, thank you very much Any other speaker cards No Angela no more street card.

UnidentifiedUnidentified speaker 2Proposed1:32:31

Where's good peeker cards?

UnidentifiedUnidentified speaker 1Proposed1:32:32

Okay All right, then it's back to the council For discussion, I think Graham's just looking for direction on this. My personal feeling is do everything we can to get this done quickly and with as least mess and smell as possible. And like Phil said, maybe we have the opportunity to actually let things just happen naturally if government gets out of the way.

So Graham, do you need any more direction?

CommentLive NationProposed · by introduction1:33:05

I just need a vote, and then we have direction.

UnidentifiedUnidentified speaker 1Proposed1:33:08

Okay. Mr. Boehl will go ahead and make the...

UnidentifiedUnidentified speaker 9Proposed1:33:11

I'll make a motion to direct staff to prepare a report with a proposal for the City Council to consider waiving the requirement of the Hold Harmless Agreement for the installation of a Welcome to Fletcher Hill sign and to present this report at the city council meeting on October 13th which is three weeks, I believe. Second.

UnidentifiedUnidentified speaker 1Proposed1:33:30

All right, moved and seconded. Please vote.

1:33 – 1:454 turns

UnidentifiedUnidentified speaker 2Proposed1:33:42

Motion carries by unanimous vote of those present.

UnidentifiedUnidentified speaker 1Proposed1:33:46

Go get them. OK, we'll see you in three weeks. All right, I'm going to go back then to item 11. This is about Parkway Plaza acquisition and control options. I'll ask the city manager to introduce this item.

CommentLive NationProposed · by introduction1:34:01

Thank you Mr. Mayor and members of the council. And I get my presentation up right now. On July 28, the City Council directed staff to prepare an analysis about Parkway Plaza and how the city can have some control or influence over its development or redevelopment of that property. We've talked a lot about Parkway Plaza but we have no ownership rights in that so it's a bit of a discussion in theory at this point. So I think council wanted us to understand from staff what are some of the mechanisms by which cities can acquire property and have influence over Mr. DiMaggio and I are going to actually jointly present this item. Mr. DiMaggio is going to address some of the reasons why and why not cities buy property or get involved with real estate acquisition.

He's going to provide then a refresher on the history of Parkway Plaza, and its really unique and troubled ownership arrangement. And I say troubled in only that it's a challenge for us because we're not dealing with one owner. We're dealing with multiple owners. And that ownership group continues to grow. He'll conclude by talking about some of the things that the city has done over the last few years to help move Parkway Plaza forward.

And then I'm going to conclude by kind of shifting away from Parkway Plaza discussion and talking more generally about how cities do acquire property or have some control or influence over a property's future. And then I'll share some financing tools that generally cities can use. There's a lot, I'm gonna narrow it down to like five or six. So with that, I'll turn the time over to Mr. DiMaggio.

CommentAndrew LawsonProposed · by introduction1:35:39

Thank you, Mr. Mitchell. As the City Manager said, there are a number of reasons why the city could be interested in acquiring an ownership stake in commercial property. It could be as in this case the commercial property is distressed it's not growing, it's not producing the type of sales tax revenue that it has historically been producing for the city and therefore I want to start by saying thank you to all of our partners in the City Council.

There are certain legal ways that we can influence our ownership stake in there and I think Mr. Mitchell will touch on those. It's it's not a it's not the preferred alternative the preferred alternative would be for cities to pave the way through favorable land use regulations economic development incentivization. Those are the type of things where the private sector can come in take advantage of those things and then and then redevelop a distressed commercial property Next slide, next slide please.

Okay as we said right now the city has no ownership stake obviously and I think some members of the public may think that we do. Some members of the public may think that we're talking about trying to do something to acquire the entire property. That's not a likely outcome. The likely outcome for any sort of participation on the city's behalf would be in a partnership, a public-private partnership But there are a number of different ways that that also could look I'm gonna go into right now. I'm going to stop right here if I can go to the next slide This is the current ownership, and I'm gonna take us through A little bit of a ride down memory lane here just just for the public and For those watching and for the City Council as to how we got to the ownership structure that you see there Sears was the first Anchor to open on the site in 1969.

It owned its own parcel and that would be the part of the site that you see on the left hand side of the screen where you have a part of the building that juts out into that property. That was the old Sears site. That was its own property. Sears owned that property. The indoor mall, which is what we think of as the mall, is the area shown as the Starwood Capital Group site. It followed and was opened in 1973, which then was followed by the Macy's site anchoring the site on the east side, which is what you see as the Tourmaline Capital Site and that used to be the Macy's site then, that part of the building that juts out into the green parcel.

Then on the eastern part of the site where it says Tabani Group, that was a separate commercial wing that developed and housed at one point Lucky's Grocery Store, Shakey's Pizza. And today the area is more commonly known colloquially as The Power Center and it houses all these home goods Best Buy amongst others. It was just involved in a real estate transaction and I'll discuss that in just a moment.

The mall itself, again going back to the central portion currently labeled Starwood Capital Group. That was originally owned by Trisek Han and that's a large, that was a large real estate investment trust, a REIT and in 1998 Trisek Han sold them all to Westfield. Westfield is a very well-known, well established mall ownership entity Here is where it gets complicated. In 2013, Westfield sold the mall to Starwood Capital Group.

Okay? Starwood Capital at that point had a seven-property mall portfolio that they then refinanced by selling bonds on the Tel Aviv Stock Exchange. They raised $268 million doing that. Over time, the declining performance of these properties that collateralized this bond issuance combined with COVID led Starwood to default on those bond payments. After several class action lawsuits that were raised in Israel, the portfolio was placed in receivership and remains there to this day. The mall is presently managed by Pacific Retail Partners under the supervision of a court appointed trustee.

Now I'll go back to the CityVest site. In 2015, as we all probably remember, Sears as a company declared bankruptcy and as part of that reorganization process the Sears business entity emerged from that bankruptcy with the name Seritage Growth Properties for the purpose of redeveloping the former Sears and some Kmart sites. However, as it started to implement this strategy it decided to choose a liquidation strategy over a redevelopment strategy and that site there then was acquired by CityVest. That's where CityVest acquired the Sears site under those conditions.

Now going over to the eastern end of the site where it's currently labeled Termaline Capital, Macy's again as you know closed its Parkway Plaza location in 2021 alongside a nationwide downsizing. The Macy's parcel was simply acquired by Termaline Capital. Lastly, Walmart which you can see is located at the bottom left of the Starwood Capital Group parcel. They were unable to reach a lease renewal agreement with the with the mall management, that's Pacific Retail. And in 2024 they shuttered their Parkway Plaza site. So to summarize the Parkway Plaza site at this point in time has four owners. The power center on the eastern edge of the site was recently acquired by the Tabani Group. Termaline Capital owns the former Macy's property which goes from Macy's up to a frontage on Fletcher Parkway And the mall proper is under the administration of a court-appointed trustee on behalf of Starwood and is managed by Pacific Retail.

And finally, CityVest owns on the west side of the site owns the former Sears site. So I can go to next slide. Another complication here is that each of these parcels now, currently have reciprocal easement agreements. So when one of the sites wants to develop something and there are several proposals that city staff is entertaining right now for new developments, new pad type developments along Fletcher Parkway. There's a number of parcel maps on file. There's a number of entitlement applications on file Each have to be consistent with the stipulations of various reciprocal easement agreements and these type of things have to do with site distance. For example, one of the more popular ways to do these types of easement agreements is to not have a new development block the line of sight to an existing large anchor retailer And so that's, those type of agreements remain in place.

They're very difficult to extinguish for anyone to come in and acquire the site. It's not something that anyone would just do when they acquired the site. There's a number of things that would have to be done. We're talking about market shifts. The whole idea of how malls operate has shifted dramatically. Just the way the consumer approaches malls Has forced a change in a redevelopment in malls and that could be UTC. That could be Mission Valley it could be any malls that we're looking at that have undergone change over the years this small has not by and large it has changed some of its structuring for example having Having retail entrances off of the parking lot which never existed during the during the early 70s you have to enter into a main doorway and everything was on the inside.

So the shifts about how the consumer interacts with mall properties what is actually in a mall property isn't entertainment isn't movie theaters That's a troubled industry right now because of the shift in consumer sentiment relative to how they consume movies and other entertainment. So market shifts is an obstacle here, a threat and in a SWOT analysis it would be a threat that prevents us from moving forward. And then lastly Would be the cost of construction to redevelopment them all versus the revenue of the future current or future uses within them all. So any side any kind of redevelopment would have to be measured against what the cost of construction is during during a redeveloped partial tear down remodel and what What revenue is coming out of the mall from current and potential future users or occupants of the mall, business occupants of the mall.

So that has to make sense what the cost is to make them all profitable versus what the revenue is that is brought in from the businesses that exist in there so there are several major challenges to anyone private sector public sector being the city private-public partnerships these are the host of I'll turn it over to Mr. Mitchell.

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1:45 – 2:021 turns

CommentLive NationProposed · by introduction1:45:41

Thank you. So a couple of things that we've been doing over the last couple years is, well, we meet regularly with the ownership group. We meet almost on a quarterly basis with the trustee from Israel. He flies out and we have meetings with them. We have regular meetings with the folks from Termaline and also from CityVest. We've not yet met the new ownership group or the power center that's on our schedule to do so.

As you recall, the city council engaged with Hunden Partners to understand what the market would bear at that site And it's a great example of you can hire anybody to draw pretty pictures, but it's got a pencil. At the end of the day that project has to make financial sense and just because you want to build 1,000 units of housing there someone has to pay rent on those and it has to be able to pay for the capital to build those housing units. So what we found in the Hunden study Was that the housing that was being proposed at that time did not pencil because they were looking at higher density housing and the cost for higher density housing per square foot is high. And the rental rates in El Cajon do not generate enough revenue to pay for that debt service And so there's a different type of housing that works.

We think a townhouse product actually works if that were the ultimate goal and we're working on that with Kimley Horn they're working on a land use plan I'll talk about that in a second. We've had several San Diego State groups come out there is a capstone as a masters program and public administration they did a capstone project about it this last year we actually had a planning group prepare a capstone project as their big overall class project. And as they were studying this idea of called Blue Zones, zones where people live to be 100 or more there are certain features they looked at that area and said how can we create a blue zone around Parkway Plaza? It was interesting it's very theoretical but there is actually some great planning devices and tools that have found their way into the land use plan because they just make make a lot of common sense In terms of land use plan, as you know we have a grant from Sandag.

So this is not being paid out of the general fund and that Sandag grant is to look at how it's a transit grant so there has to be a transit connection of how to incorporate Parkway Plaza into a transit hub having interconnections with not only bus but the trolley station down the street from Arnell. So they're looking at how the connectivity would occur from future mall development and the trolley station.

We have an upcoming town hall meeting on October 1st at the Ronald Reagan from 6 to 8 o'clock. It's going to be a great opportunity for people to come out and just see what's going on at Parkway Plaza, it's very informal there's gonna be charrettes and diagrams and maps and graphs all over the walls where people can just walk from station to station We suspect some people may spend the whole two hours there. Some people may kind of come in and go out in 15, 20 minutes because they got enough information but we'll be seeking a lot of feedback about various aspects of that plan and that plans coming together. We've already met with the stakeholder groups to understand what their needs are from a realistic perspective so that's coming up next week.

So we encourage the community to be there for In the staff report, staff identified five different ways in which a city can either influence or control the destiny of a piece of property. And I'll just run through these really quickly. So ultimately cities control zoning. We control it through the municipal code. We control it through specific plans, through master plans and typically this is a great way for the city to say this is how we want development in the future to happen but you can have a specific plan and no development ever occur Thank you very much.

A property owner that wants to do redevelopment and actually needs something from the city, whether it be a financial interest, whether it be some zoning waivers or some zoning considerations. Whether it be some density bonuses these are things that then we can say we will city We will give you that as a city, but in exchange this is the type of development that we want to see. That's typically what happens. That's how the courtyard was built through a development agreement. There were city contributions and in exchange we got a certain type of product that the city demanded at that time. The great value of this is there's almost no risk at all because the risk all goes on to the private market or the developer, but we also have very little control Because we have to wait on that market to actually happen.

The next sorry the next concept is creating a long term ground lease, this again assumes that the city own a city owns the land and then rather than operating the product, a city can Enter into a long term, typically a 50 year ground lease that gives a developer enough time to build something generate revenue to pay for the debt to build that and then get a little bit of income on top. A great example of this is North County Mall. In Escondido, the city of Escondido actually owns the dirt underneath the majority of them all. There are portions where Sears used to own and some other outside parcels that this city does not own but the majority of them all land is actually owned by the city and the city entered into a long-term lease agreement with Westfield who then developed them all built them all managed them all Again, this gives cities a little bit more control over the destiny.

The city of Escondido had some control over where a movie theater was being proposed at that time so it had some ability to control that and there's very little risk but there is some risk with that because sometimes mall ownership groups fold or sell their property in the case of North County Westfield decided to leave and so there's a new ownership group there. The city didn't have much choice in that and so you do lose a little bit of that overall The next idea or the next concept is this one where a city would go in with a developer and be a co-owner, a copurchaser and do a joint venture to acquire property. and then to develop that property. The value of that is you do split up your risks, also city can do the things that cities are really good at doing and then things that private sector's good at doing will do those things so you can kind of divide up the tasks there.

A common way that these are coming about more and more are what I call P3s or public-private partnerships and it'd be another way to explore purchasing property and doing something interesting Again, an ability to get a higher value in terms of control with some moderate risk because you're sharing that risk with the private sector. Now let's get into the actual acquisition options. So some of these options that I talked about before assume that there's somebody that wants to sell their property to you, whether it be having a long-term ground lease or partial ownership or entering into a development agreement, there has to be a willing party on the other side. So typically if there's a volunteer acquisition and the city has done this actually several times in the last few years, it's pretty common.

The city would present a letter of interest. This is what we want to do. It spells out some of the terms of that period where we would do some due diligence. Perhaps, we would look at existing tenant leases. We would look at revenue to be generated in the case of a complicated project like a mall. We would look at those reciprocal easement agreements to understand how they would limit development We would conduct an engineer's report to understand the structural stability of the buildings, any undeferred maintenance that would need to be taken care of. And then we would also want to understand the cost to manage the property. So we would do that all during this LOI period including obtaining an appraisal and then once that appraisal comes in we sit down with the interested party that wants to sell And we talk about prices and terms, and we bring forward a development or a purchase agreement to the City Council for consideration.

Again, city has very high control in that situation but then also has high risk. We experience that with some of the ownership we have right now. The last scenario is in which a city, any city anywhere in the United States wants to purchase a piece of property and there's an unwilling seller. And typically cities use this tool all the time if you look at it MTS agenda you see eminent domain always because they're looking for a little slice of right-of-way or sandbag needs a little piece of roadway so this is a very typical way that cities engage in acquiring land that in which there's an unwilling seller But in order to do it, it's very complicated. It's timely, it's consultant expensive and there's lots of little tasks that have to be done.

In the staff report I boiled down the eight big things that you have to do so if the City of El Cajon wanted to acquire any piece of property anywhere in the city one, you can't just buy property because you want to buy property. You have to have a public need for that piece of property In the case of an MTS, typically that public need is we need to expand the trolley tracks and we need three extra feet here or we need 12 feet or 100 feet. So whatever that is there has to be a public need not just because we want it in our war chest. There has to be some due diligence and we talked about some of the other due diligence that we would do even in a different type of acquisition where there was a willing seller.

We would obtain an appraisal We would make a purchase offer. Assuming the purchase offer is rejected, we then have to establish a hearing in order for the City Council to take some next steps and we'd have to give that owner an opportunity to address the council and explain why the city shouldn't buy it at the rate that we've offered At that after that public hearing, the City Council could adopt a resolution of necessity. And what that does is that's really the triggering mechanism that allows us to go to court, the Superior Court and file a condemnation action and then with that condemnation action would also be a deposit of what we think the probable or the likely purchase price would be so if something is worth Two million dollars, we would have to deposit the two million dollars with the court at that time.

So you can see there's a lot of risk because you have to come up with the money upfront. Things could stay in court for quite awhile. At the end of the day, the judge can look at what the city has offered and say I don't think that's enough. You should pay more and so we're mandated to pay more in that scenario. So there's a lot of risks that go into the use of eminent domain especially on a commercial property that's not being used for expansion of roadway or expansion of a park or something like Staff also in the staff report talked about some of the ways that a city could finance the acquisition of a parcel or piece of property. I think there's a lot of factors that would drive the different options for example if it was a small piece of property that didn't cost much, I would not recommend financing I'd just recommend taking that out of a reserve that you might have general fund reserve or if it's a wastewater project out of your wastewater reserve.

So that would make more sense, but if it's complicated project or if its generating revenue there it opens up some opportunities for you to use different bonding mechanisms and you have to think about the triggering of the Surplus Lands Act so that is a factor in what kind of financing that you're going to use and at the end of the day you have to determine whether you think eminent domain is gonna be used because that will also drive the type of financing you use With that, let's talk about a couple of financing options.

Most cities don't just have tens of millions of dollars laying around to buy surplus land, so typically you have to finance these things. One of the ways that you can finance this or any kind of project would be to go out and get what's called a lease revenue bond. In this scenario, you look at what... You go out and get bonds and it's actually secured with the revenue that that project is generating. So if you're going out and securing $20 million of financing, and the mall's generating $3 million a year. You have enough to not only pay back the financing, you actually are generating some revenue to put back into the property or back into the general fund. So that would actually be a no-brainer. I would recommend that all day. You should probably go out and buy that piece of property if there's a willing seller or if there's a way to acquire that land.

If there's not enough revenue generated to pay off the bonds, then you have to look at some other types of bonds. Typically cities look at a general obligation bond. Those are secured with property tax from a city. Another way to do it would be a citywide tax. So similar to what we did with the public safety tax, Prop O, where we would go out Adopt a sales tax measure or adopt a property tax measure and that revenue would secure the additional financing for those bonds. So, that's another way to do it.

You could create assessment districts or community facilities districts that help can pay for financing of infrastructure needed or ongoing costs. Typically an assessment district wouldn't pay for the entire purchase of a mall but it would help pay for some of the ongoing maintenance of that piece of property or the needed infrastructure to support the future development of that you would look at some maybe ground lease if there's a way to lease out a piece of property that you own to a private I'm going to go ahead and make a motion.

Another strategy that some cities are looking at is this concept of selling density, housing density across the city. So the city could say we're willing to sell 1,000 units of density meaning you can put more density on your property than the current zoning allows and let's say for the thousand units you're going to charge $20,000 For that for each of those units that could generate 20 million dollars right there. So there's an analysis would have to happen but that's an option that some cities are looking at to generate one time money for big projects like this.

There is the creation of an enhanced infrastructure financing district. This is sort of redevelopment 2.0 in which we would share our tax increment so As property tax or property values increase, our tax revenue goes up. We would share our portion. The challenge is that we only get to share 10% of the increase so it's not that much. The county has traditionally not participated in EFIDs or EIFDs And school districts are by law prohibited to participate in these arrangements. So we don't have a lot to offer, but it could be a little bit to offer. Those are just a couple of the different types of financing mechanisms that a city could explore if we were to get into the position of wanting to buy a piece of property.

So I think the intent of this one was to meet the request from the City Council to bring this forward. But you can see it's a really complicated issue there's a lot of moving parts there's a lot of moving a lot of different players that are at the table it's not just our party versus another party and so we can answer any questions that you might have. I would recommend if there is any interest in having a conversation about How the city could have control or how it could explore having control, whether it be through partnerships or through zoning or through acquisition. Some of those conversations should occur in closed session so I'd recommend that council direct us to put something on the agenda if that's something we want to talk about further.

So with that staff is here to answer any questions you may have.

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2:03 – 2:1611 turns

UnidentifiedUnidentified speaker 9Proposed2:03:08

I think one of the, thank you. It's a very thorough report with a lot of options, a lot of risk assessments, a lot of financing options so it's very thorough well done. Some people in the public might ask why aren't we hearing from developers? Who are trying to talk to us about acquiring this property. Why is the city having this conversation if private investment isn't having this conversation? What can you say?

CommentLive NationProposed · by introduction2:03:40

That's a really good question, and typically it's hard for us to go talk to the development community since we have no ownership stake. So typically if we'll go out and talk to developer will say we got this great property in El Cajon. We'd love to see some redevelopment. We have a vision for it. We have a support of City Council and the first question they ask Why are we talking to you? Because you have no control over that property. So, that's number one.

The other thing that makes this difficult is because it's in this trustee control right now, the trustee... Most property owners have a vested interest to see the long-term growth of their property. A trustee does not have that. That's not their motive. Their motive is To either sell that property, so to fill it with as many tenants as it possibly can. To become profitable, to sell it for as much as it can or just to pay off its debt. And so the mentality of the trustee is not to go out and entertain conversations with the development community because that's not what they're doing right now. They're focusing on stopping the hemorrhage.

So I think that's the value of having this conversation. I think the more we talk about it, I think the development community, the BIA groups, all those folks will go oh, the city is interested in this and we know that they don't control it but they're ready to pounce once the market's ready. And so there is some value but Mr. Goble you're exactly right. It's hard to have these conversations with the development community because we have no control.

UnidentifiedUnidentified speaker 9Proposed2:05:10

And I think along with that And it's probably a closed session item to say where does the control, it's a negotiation. How long is it going to take for control to be released and at what price? At what terms? That's probably a negotiating thing for a different session but in open session we could talk about incentives to developers. We could float out, it's not maybe that's a closed session item too. Well we've been public, we have had revenue sharing with the courtyard, revenue sharing with the Hampton, revenue sharing with the car dealerships and I don't know that I saw the revenue sharing incentive. I think it was mentioned in EIFD as that's one element but we also Sales tax revenue sharing, maybe if we start to talk about those things developers may say oh okay so you're interested in helping us with that as well.

I'd add that into the mix of I

CommentLive NationProposed · by introduction2:06:26

think that's where development agreements, those are the things that are included in a development agreement. So for sure those would be included whether it'd be a density bonus that would give them more ability to develop or straight up support, upfront support for costs or long-term support for maintenance of property so exactly right.

UnidentifiedUnidentified speaker 9Proposed2:06:46

And we still don't have development impact fees In the city of San Diego, for instance, there was one MTS project. It was $40,000 a unit and that's why these condos and townhomes are going for much more because they kind of cover that $40 thousand not payable to the city. We're not getting enough credit for not charging development impact fees. And that's another thing that could be thrown out as a carrot. I'd love to see carrots as part of that package somehow somewhere someday.

UnidentifiedUnidentified speaker 20Proposed2:07:21

Thank you. Yeah, Graham and Vince thank you for the fantastic presentation I appreciate going back in time as well so we can kind of see how the mall has progressed. Seeing it for its potential and its highest and best use. And so a lot of the times, I think when at least when I go and try and problem solve And any kind of organization that I'm at is we take all the stakeholders together and we circle the problem, make sure we agree what the problem is. And to that point, I think everybody wants to see, you know, see the mall improve. Now what we're doing is we're circling the solution. Okay? What's the right solution for the mall? And we need to take a couple passes at this with the community, with at large the people who are going to be spending their tax dollars there, what do they want We need to look at what the market can bear.

We need to talk to developers, the owners and we're bringing all the people together to circle the solution and make sure we know exactly what the right solution is for them all what that's going to look like. And like you said it's extraordinary extraordinarily complex, and I appreciate your. Your question, because I share the same sentiment with regard to what our city manager said is we have to continually keep bringing this up. We have to continually show the community that this is a priority for us.

I think it's important for the development community that the city. It's one of our highest priorities to see Parkway Plaza and its, and its highest and best use. And that we as a City Council are willing and ready to engage make investments concessions get creative in order to see it. To that point, a lot of the times cities are They prohibit development, they don't want to see it and developers are scared.

Al Cajon needs to roll out the red carpet because we are competing for these developers dollars, the development dollars that they can spend. And they're looking at properties all over the state, all over the nation and we need to show them hey you may have some roadblocks but we're going to do our best to work with you to make sure that we see your project through and we'd be willing to put some money up for that.

Yeah, to the public this is at least I can't speak for everybody but this is one of our highest priorities because malls across the nation are dying and they were a large source of tax revenue for cities in the past. And yeah we have we can't let this fall into disrepair so we need to wait for a deal. We need to wait for someone to be ready to sell and I guess move forward from there if all the pieces fall together.

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CommentLive NationProposed · by introduction2:10:30

If I can tag on to Mr. Ortiz as well, that land use plan will also be very valuable as we talk to development community because right now we have a plan but it's probably under-densified. It doesn't have a vision of what could occur there so once we have that land use plan that has the input from the community and been adopted by the City Council, we can then take that to the development community and say we may not own stuff here but this is what the vision is. Are you interested in being part of that vision?

UnidentifiedUnidentified speaker 19Proposed2:10:58

Thank you for the report. Can we go back to the slide that gave us the options? Yeah, there you go. Thank you. My personal opinion I'd like to look at 1, 2 and at the very last resort number 3. I don't think that we need to be going into mall ownership The some of the assets that we own right now have been somewhat troublesome and we don't get into that again.

But I would like to we've been working on this for what a couple of years now So we've done a lot of work and it's really funny to see the comments from the public saying, oh we've got this plan and we've got this plan like we haven't done anything but we have been working on this for at least two years. And unfortunately those candidates if you will they're not privy to the closed session discussions that we have. They're not privy to the things that we've already done and hopefully we can come out with a lot of that.

I'd like to see a partnership that is low risk to the city because we just cannot I just can't see spending money. We shouldn't be in them all business period. Let's just make it bottom line. But I also don't want to lose the mall. So, I'd like for us to kind of continue on looking at it and I think we're on the right track. I'm not hearing a lot of let's buy.

Is that kind of correct? Are you guys are not really... I don't

CommentLive NationProposed · by introduction2:12:49

think we're in a position even come close to saying let's buy. I think a land use plan has to be in place first. Right. Then we'd have that conversation in closed session because that's something that it's part of labor or contract or property negotiation. So I would recommend we have that conversation

UnidentifiedUnidentified speaker 19Proposed2:13:05

offline. And that's great. I think what I want is the public to understand that there has been so much controversy on there and newspapers or news stations, you know, we're going to buy them all. No, we've never said we were going to buy them all. We've looked into it but we're not going to buy them all And I want residents to be happy with what it is. Ultimately, it's for them. The mall is for the residents of El Cajon and East County at large. And so I'm looking forward to being there on the first and seeing what residents have to say but I really hope that we can kind of look at these partnerships and keep the risk Yes, I understand that control would be kind of low but if we can kind of keep the risk to the city right now maybe in 10 years something will happen.

But in the meantime let's keep things low risk to the city and just keep working forward

CommentAndrew LawsonProposed · by introduction2:14:09

Can I just add to Miss Mitchell and Mr. Ortiz comments? We are working, we have worked very productively with Tourmaline and CityVest. They have been active in looking at some early meetings we had with Kimley Horn on the land use plan. That's important because if we can get them to be a participant in what that land use plan looks like it lessens the risk. And what I mean by risk is They acquired their properties with the idea of making money. They're in the business to make money that's what they do.

What we're seeing though and they have to monetize their investments somehow and so what we're seeing is a lot of drive through restaurants on paths out near Fletcher Parkway If you have a proliferation of those, you're changing the complexion of the mall because malls don't typically have drive-thrus. It's an experience where you park, you go inside some place and you participate with whatever activities are happening inside. If you start moving things from a planning standpoint out onto the arterial, you're saying you can stay in your car the whole time. You can just go and sit in the drive-through line and get whatever it is you want to get and you'll never set foot in the mall. So we understand the balance. We understand that the people that have acquired those two parcels are in the business to make money and tourmaline is successful in getting the marshals to go over there quite frankly it does take the marshals away from its current location, and that's a little bit of cannibalism But it does put it in a location where people will come to a site where there's other things to do but they also Looking at other uses that front on Fletcher Parkway So getting them involved and getting them to play a role in the land use plan So that if they are long-term owners, if they're interested in developing their site They could do so consistent with what the land use plan is as active participants in that process

2:16 – 2:2114 turns

UnidentifiedUnidentified speaker 9Proposed2:16:11

I Think what I'm hearing is I think the public expects us To share a vision of what Parkway Plaza can be and to share with the developer what the community supports and what the Council supports. I think the public also expects us to remove obstacles, and the public expects us to provide incentives. Share a vision, remove obstacles, provide a vision. At some point, our involvement with ICSE, International Council of Shopping Centers. Attending a convention just to get a pulse of what's going on in shopping centers from that kind of point of view might be a productive trip.

UnidentifiedUnidentified speaker 1Proposed2:17:02

I'll keep my comments short. I'm mostly interested in strategies to be successful which I think might be better at closed session situations so I'll just leave it at that. All right, Angela, do we have any speaker cards on this item? We have one. Brenda Hammond.

UnidentifiedUnidentified speaker 10Proposed2:17:33

OK. Can I take you away from the seriousness? I came to El Cajon early because I wanted to go to Parkway Plaza and see my guy friends who like to play with their trains. They moved from Grossmont Center to Parkway Plaza, so you guys should go check it out. It's very cool. That's all I wanted to say. So, I'm going to leave this with you. It's the rough draft of... And they love playing with those trains, 70 and 80 year olds playing with

UnidentifiedUnidentified speaker 5Proposed2:18:06

trains.

UnidentifiedUnidentified speaker 10Proposed2:18:09

But on the way here it was scary on Avocado. I hope you catch the guy that was driving he had to be going at least 70 or 80 because he was going in out of traffic and we were all going, you know, the speed limit so hope you catch him.

UnidentifiedUnidentified speaker 1Proposed2:18:28

Thanks, Brenda. OK. That's it right?

UnidentifiedUnidentified speaker 2Proposed2:18:40

No other speakers.

UnidentifiedUnidentified speaker 1Proposed2:18:42

So it's back to council discussion and proceed with the motion.

UnidentifiedUnidentified speaker 20Proposed2:18:47

I'll make a motion to receive the report. Please

UnidentifiedUnidentified speaker 1Proposed2:18:53

vote.

UnidentifiedUnidentified speaker 2Proposed2:19:00

Motion carries by unanimous vote of those present.

UnidentifiedUnidentified speaker 1Proposed2:19:07

Our next item, Item 13 is the 2026 Annual Pension Staffs Report and I'll ask staff to tell us about this. You're right, thanks Steve. You're here for the Washington Avenue? Correct. Okay so actually item 12 is regarding the Washington Avenue safety improvements and staff's here to tell us about this. Thanks

PresenterYasmin ArellanoDevelopment ServicesProposedself-stated2:19:42

Thank you very much. Good evening, good afternoon Honorable Mayor, Council Members. I'm Yasmin Arellano, Director of Development Services. The item before you today is to establish the Washington Avenue Safety Improvements Phase 2 project and also to appropriate the necessary funding. So this project continues the work on Washington Avenue to the east. Phase one, which is currently under construction between Avocado and Mollison is underway to install raised concrete medians intersection safety enhancements and high visibility crosswalk at the intersection with South Lincoln Avenue.

The phase two will extend this corridor safety improvements all the way to how much a road and it will continue the efforts to improve the safety along the Washington Avenue quarter. Improvements also include the installation of race medians The high visibility pedestrian crossing and additional traffic calming measures. Caltrans has awarded the city $2.82 million in Highway Safety Improvement Program funds, and this is for only Phase 2.

The recommendation will appropriate the grant funding for phase two and provide the local transnet contribution and establish the project budget. Staff recommends approval of the resolution, thank you.

UnidentifiedUnidentified speaker 1Proposed2:21:28

Senator Quirk? Yes sir. Okay. Council any questions? Thank you very much.

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2:21 – 2:3110 turns

UnidentifiedUnidentified speaker 20Proposed2:21:53

Very, very difficult to walk on. And I think in a rolling 12 month period we had three times our power knocked out due to excessive speeding and hitting the power poles. So this is extraordinarily much needed. I think it dips into Steve's district as well. So with that, I'll make a motion to adopt the resolution authorizing the three points in the staff report Second. All right. Please vote

UnidentifiedUnidentified speaker 2Proposed2:22:33

motion carries by unanimous vote of those present. Thank you.

UnidentifiedUnidentified speaker 1Proposed2:22:40

Now we're on to item 13 which is the annual pension status report It's not your birthday.

CommentLuca GonzalezProposedself-stated2:24:05

Well sir, how are you? Hi good afternoon Honorable Mayor and distinguished members of the City Council. My name is Luca Gonzalez I am the financial operations manager in the city's finance department and today I'll be presenting the annual pension status report So the city's pension funding policy requires an annual update each year to be presented to the City Council at a public meeting The report will cover the new amortization levels And any recommended actions or budget adjustments for consideration.

So first up, we have a graph. This is a 20 year history of CalPERS's investment returns. This is taken directly from the CalPERS actuarial report from June 30th 2025. It's the most recent report. This 20 year history shows the bars that are the actual investment returns for CalPERS That blue line going through the middle that represents the discount rate. The discount rate is effectively the target long-term goal that CalPERS has for the investments.

It's currently at 6.8%. This directly contributes to the city's pension costs, so their performance will either help or hurt our pension costs each year. Anything above that line that they earn will help our pension costs and Anything below that line doesn't have to be below zero just blow that line will increase our pension costs each year. The last two years have had strong investment performance most recently 11 point 6 percent in 2025.

That is a direct contributor to the city's current funded status not reflected in this report is the 2026 preliminary results which showed a 14 point 8 percent return so another strong year This is a 10 year history for the city's pension report. I'm sorry, pension status. This is a combination of both our miscellaneous and safety plans. You can see our total liability as of the most recent report is about $735 million. Total assets about $654 million leaving us with about $81 million unfunded so that's a funded status of 89% and that just means the total assets that we have can pay for about 89% of the total liability A couple of things to note on this slide. If you look at the far left column for total liability, that progressively goes up each year.

That's just constant growth whereas the total assets has a little bit more volatility and those are tied directly to the performance from the previous slide. Two quick examples of that most recently from last year to this year went from about 85% funded up to 89% funded and that's directly from that 11.6 investment return. Going back a few more years, you can see in 2021 we're 96% just overfunded. That's mostly due to the issuance of pension obligation bonds where we kind of shifted some of that liability outside of CalPERS.

That also coincided with a really strong investment performance year for CalPERS. The next year you can see it drops all the way down to 82% in one year and that just kind of highlights that volatility. CalPERS had a bad year and so directly affected us. So when we think about I'm here to talk about pension liability. We always take the full picture into account, so like I said we shifted about 100 well at the time 147 million out of CalPERS.

So that's not reflected in the 81 million unfunded liability but our total pension related debt is about 206 million comprised of the 81 plus it's 126 million of pension obligation bond principal outstanding compared to last year this is an improvement of about 33 million dollars and that's primarily due Principal payment that we made on those outstanding debts.

This is a table showing the new amortization levels or bases. The biggest numbers on here you'll see are those big negative numbers and that's for that investment gain. The negative number on this screen is good. This is from the perspective of its effect on our UAL, or that's our unfunded accrued liability. That's that big lump sum payment we make each year to CalPERS. So a negative number here means that it's reducing our UAL contribution requirement each year.

The amortization, just that's a term that's used basically means we're recognizing something over time. So CalPERS will recognize those gains or losses over a 20-year period and that's their attempt to kind of smooth out that volatility so we don't have a huge spike up or huge drop down each year in our pension costs. So next this is our estimated future or projected future Pension costs, this slide is from the actuarial reports as well.

This shows both our normal costs and our UAL payment. That ULI payment again is that lump sum that we make. That's the amortization of that $81 million unfunded liability. Normal cost, that represents the current benefits being earned. We pay CalPERS every pay period for normal costs. On here it's reflected as a percentage of payroll but for a dollar figure we estimate 2028 normal costs would be about 7.6 million That plus the $10.2 million UAL payment, in addition to the $9.1 million POB debt service payment brings our 2028 anticipated pension related costs to just under $27 million.

So part of the pension funding policy is that we need to bring or evaluate any additional contributions for consideration Due to three consecutive years of strong CalPERS investment performance, we have no recommendation for additional contributions at this time. So again, we have a no recommended action. Pension costs will be discussed further in the upcoming five-year business plan update as well as the 2028 budget discussions. The pension status report next one of this version will be fall 2027 and that concludes my report. I'm available for any questions.

UnidentifiedUnidentified speaker 1Proposed2:30:06

Thank you let me see if there's questions

UnidentifiedUnidentified speaker 9Proposed2:30:10

Could we go back to slide 7, please? I think it is. There. I think you said the required contribution on the left-hand side of 6.7 and 3.4 comes up with 10.2 or something like that? Yeah, about that. Okay. The 2028 29 is 7.4 plus 3.7 is

CommentLuca GonzalezProposedself-stated2:30:35

known that's for a different year so that plus was the 9.1 million that's the debt service for the pension obligation bond. The other component was that normal cost on here it's not $1 amount they represent as a percentage of payroll We expect that Mostly generally.

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UnidentifiedUnidentified speaker 9Proposed2:31:05

And is that $27 million a combination of city contributions and employee contributions, or is that just the city

CommentLuca GonzalezProposedself-stated2:31:15

portion? That's just the city's cost.

UnidentifiedUnidentified speaker 9Proposed2:31:16

So 27 cents roughly of our general fund is spoken for in the form of pension payments. I'm just trying to get that wrapped around my head. Okay. It's a big number. When 85% of our budget is payroll and some of the pension is buried into that 85%, I get it, there's not a lot of waste. There's not a lot of places we can come up with well, we'll just cut this or we'll cut that or cut this. We're pretty lean in our general fund. That's my takeaway. Thank you.

2:31 – 2:3824 turns

UnidentifiedUnidentified speaker 1Proposed2:31:59

When CalPERS does well in their investments like we have this last year, how does that directly affect the city of El Cajon? Do we share in that wealth or...

CommentLuca GonzalezProposedself-stated2:32:10

So I'll go back to the table with a 10-year history. So that middle column for total assets, that's our contributions that we made that goes to CalPERS. That UAL We're effectively sending money to CalPERS to hold on to and invest so they can try to hit that 6.8% for those future debt service, or future payments. So when they perform really well, that's why that number goes up or down just how much money they're making or unfortunately potentially losing.

UnidentifiedUnidentified speaker 1Proposed2:32:41

So when it's poor we have to come up with more money to send the mature?

CommentLuca GonzalezProposedself-stated2:32:45

Yeah. You know, poor investment performance. Again that doesn't have to go negative it just has to be below that discount rate. That will increase that unfunded amount which is basically we have less assets to pay for total liabilities but again they smoothed that out over 20 years so yes it will hurt us but it's not all at once in one year.

UnidentifiedUnidentified speaker 1Proposed2:33:05

I

CommentLuca GonzalezProposedself-stated2:33:05

understand

UnidentifiedUnidentified speaker 1Proposed2:33:06

what would a projection models say about CalPERS investment potential in the next few years? I do not have the information at this time, but I can get that. That's fine. I appreciate that. Thank you. Didn't mean to hit you with that out of left field. Any other questions? All right thank you a great report.

CommentLuca GonzalezProposedself-stated2:33:22

Thank

UnidentifiedUnidentified speaker 1Proposed2:33:23

you. Very formative. Do we have any speaker cards on this item?

UnidentifiedUnidentified speaker 2Proposed2:33:26

No speaker card sir.

UnidentifiedUnidentified speaker 1Proposed2:33:27

All right and I bring it back to the council.

UnidentifiedUnidentified speaker 21Proposed2:33:30

Motion to receive the report.

UnidentifiedUnidentified speaker 1Proposed2:33:34

Is there second? There is a motion and a second please vote. The last administrative report on today's agenda is item 14 for City Council Policies A-2. City Manager Graham Mitchell, will you please tell us about this?

CommentLive NationProposed · by introduction2:33:57

Good evening, Mr. Mayor members of the City Council at our last meeting staff presented 10 city council policies that we were recommending either updates or eliminations one of those policies was Policy City Council policy a to which is the City Council meeting an agenda policy During that meeting staff presented several options by which accounts member could place an item on the agenda Council gave staff some feedback and then we've taken that feedback and they've incorporated the following Two sentences into the policy and present that for you right now the current or the addition, or the feedback from the council which resulted in the paragraph says that during the future agenda items portion of the City Council meeting any council member may request that an item be placed on a future city council agenda.

If at least one other council member concurs with the request, the city manager shall place the item on a future agenda. With direction from the city council, the city manager shall determine the timing of the item based on the time necessary to conduct any required research, prepare a report and existing staff work. So with that staff presents agenda or City Council Policy A2.

Staff also in addition we also included the words non-agenda before the words public comment in the agenda item to be included in a typical agenda report Or a typical agenda. The other item that the council asked staff to look at is, staff was recommending that we completely delete policy A3 which is citizens requests and complaints And so staff or council said, can you redraft that? So we brought this back. We looked at some of the language is a little bit archaic. So we redrafted it. We looked at some other cities around the state and some things that made sense to us and brought this together. I'll just point out a few things in the policy which is provided as a red line version. It does talk about the different channels of communicating to the city council and the staff including some of our apps and our technology It also makes it clear that the city manager is responsible for providing the administrative response.

Gives the Council some opportunities for the expectation that the Council will address items in a timely manner as well. And then also it identifies if there's a complicated issue or something that involves some interpretation, that item can be brought forward to the City Council for further conversation and discussion. So with that staff presents city council policies A-2.

and A3 for adoption. And if those are adopted, then we'll format them in our traditional format and get them published. So with that, staff's here to answer any questions you may have.

UnidentifiedUnidentified speaker 1Proposed2:37:03

Thanks, Graham. Appreciate that. Questions for Graham? Michelle?

UnidentifiedUnidentified speaker 19Proposed2:37:07

Thanks, Graham, for the report. Just to be clear, we're having a meeting. I want to put something on the agenda. I can say, hey, I'd like to get this on the agenda Any of my colleagues want to step up and join me? And we can do that in this setting, and that's how we're going to do it from now on. Sort of.

CommentLive NationProposed · by introduction2:37:28

Okay. Sort of. In the middle of the meeting let's say during the pension you have an idea.

UnidentifiedUnidentified speaker 19Proposed2:37:33

Yeah.

CommentLive NationProposed · by introduction2:37:33

Save that near the end of the meeting there will be an item on every agenda that says future agenda items. That's when you can bring that up.

UnidentifiedUnidentified speaker 19Proposed2:37:41

Okay so we don't have to

CommentLive NationProposed · by introduction2:37:44

Have a report, talk to me first. Now you can utilize me as a resource to help you flush ideas out and I would recommend that you have something that's flushed out because your colleagues are probably going to ask some questions about it right so but yeah something may come up at that meeting and you say we should talk about this you can put that on the agenda

UnidentifiedUnidentified speaker 19Proposed2:38:03

Okay. Because right now, I mean it's like if I want to put something on, I got to contact the mayor or Phil or somebody and say hey you know what do you think about doing this? And sometimes I think it puts us on the spot and not that hello but it just kind of you know you want to get more information sometimes before you actually commit to co-authoring at least in my In my experience, so this kind of cuts through to that.

CommentLive NationProposed · by introduction2:38:36

This completely changes that process exactly right

UnidentifiedUnidentified speaker 19Proposed2:38:38

perfect. Thank you

2:38 – 2:4525 turns

UnidentifiedUnidentified speaker 9Proposed2:38:43

To that and I think Better okay to that end The Board of Supervisors, the supervisors will prepare a board letter in this kind of setting. We could come forward with an official council letter as an agenda item during this section which kinda has some of these things flushed out.

CommentLive NationProposed · by introduction2:39:18

I think, I mean as a council member, I think there's a lot of value in that because it means you've thought this through and you probably have a better chance of getting another board member or council member to support that. So I would encourage that level of involvement and staff can help you with that too.

UnidentifiedUnidentified speaker 9Proposed2:39:34

And it becomes part of the agenda packet so people know three or four days in advance of what's going to be talked about. It's not just- That's correct.

CommentLive NationProposed · by introduction2:39:40

It can

UnidentifiedUnidentified speaker 9Proposed2:39:40

be on the

CommentLive NationProposed · by introduction2:39:41

agenda for sure. But it's also an area where if something of relevance comes up during the meeting, you do have the ability to discuss that during the council meetings.

UnidentifiedUnidentified speaker 22Proposed2:39:52

The only comment I would make is under the section of the agenda where it says future agenda item request, the intent is not to get into a discussion of the full subject matter of that future agenda item. It's just for the council member to briefly say I'd like to put XYZ on the next agenda does another council member agree with that and give that direction to staff but we won't for Brown Act purposes at that time it's not going to be a back and forth Discussion related to you know the policy of that particular and the action proposed for that particular item.

UnidentifiedUnidentified speaker 9Proposed2:40:31

Agreed I think a Fletcher sign thing is probably an example of that OK item this is for the city attorney policy a three I just want to make sure that we're covered liability wise because we talk about requests or complaints may be submitted through a variety of channels, email website. I just want to make sure we're not liable if there's a breakdown in communication while I sent it to you so I put you on notice that this condition exists in the city but you're saying you never got it You see where I'm going with that. Do we have liability to

UnidentifiedUnidentified speaker 22Proposed2:41:13

mean there's different levels of liability obviously you know dangerous conditions whatnot but this policy is means citizens email the city every single day city manager the public works director the police chief et cetera so I think this is just kind of a generic policy about how the city's going to manage requests. But there are specific laws related to you know claims where someone's attempting to recover damages from the city. Those are gonna be processed pursuant to that policy. You know complaints against police officers have a specific provision in state law those are still going to be handled and those Respects. I think this is Intended to be just kind of a general When a citizen sends an email to the city, it's going to be handled with care to route it through the process

UnidentifiedUnidentified speaker 9Proposed2:42:10

Sounds good. Just wanted to check. Thank you

UnidentifiedUnidentified speaker 1Proposed2:42:14

Okay Angela do we have any speaker cards on this item?

UnidentifiedUnidentified speaker 2Proposed2:42:19

No speakers sir All

UnidentifiedUnidentified speaker 1Proposed2:42:21

right back to council

UnidentifiedUnidentified speaker 21Proposed2:42:23

I'll make a motion that the City Council adopts the revised policies A2 and A3.

UnidentifiedUnidentified speaker 1Proposed2:42:29

Second.

UnidentifiedUnidentified speaker 2Proposed2:42:31

Please vote. Motion carries by unanimous vote of those present.

UnidentifiedUnidentified speaker 1Proposed2:42:45

There are no commissioner reports on today's agenda.

CommentLive NationProposed · by introduction2:42:48

Before we move on, just really quickly, Ms. Cortez will be working with the software company that does our agendas. We're not going to see a change in this agenda at the next council meeting. It'll take awhile to reformat so you'll see that hopefully by December but it may take a month or two to get up. So I just want you to be aware of that.

UnidentifiedUnidentified speaker 1Proposed2:43:08

Great. All right there are no commissioner reports on today's agenda item 15 is my activity report Now we're at activity report of council members. I'll start with Council Member

UnidentifiedUnidentified speaker 9Proposed2:43:17

Gohl. As reported with a couple of notes, MTS met... Let me try this. MTS had a board meeting last week and they're looking at a magnitude of perhaps 27% cuts in service to the bus and trolley schedule if there's not a new revenue source in a couple of years So that could be significant. That's not planned, that's not voted on but that's the magnitude. I had attended a quarterly FBI community briefing last night which was very interesting it was the assistant special agent in charge of the FBI, the district attorney, the assistant sheriff, assistant chief from SDPD and assistant US Attorney talked about a variety of topics but a special interest was AI And I was glad to hear that from an AI point of view, that these folks are aware of be careful what you ask for.

Because there could be a situation where they could say we've received a cell phone and there's all sorts of data on a cell phone but be careful that you don't accidentally view privileged information between a spouse or between the cell phone owner and an attorney. So in a sense, some of these law enforcement people are almost having an arm's length to some of these AI-assisted searches.

What these AI-assisted searches are doing are finding patterns in their investigations but it was nice to hear that they are taking very slow Thoughtful approach to how these tools are used in investigations, and that was a good discussion last night Thanks to you

UnidentifiedUnidentified speaker 1Proposed2:45:14

Councilmember Ortiz

UnidentifiedUnidentified speaker 20Proposed2:45:16

as reported but I did not make the POA golf tournament and the Dodgers are going down

UnidentifiedUnidentified speaker 1Proposed2:45:23

and

UnidentifiedUnidentified speaker 20Proposed2:45:23

Deputy Mayor Mitchell

UnidentifiedUnidentified speaker 19Proposed2:45:24

has reported

2:45 – 3:098 turns

UnidentifiedUnidentified speaker 1Proposed2:45:32

Okay, there are no general information items on and no first or second readings of ordinances on today's agenda. And that brings us to closed session in our city attorney will recite the titles and lead us into the closed session.

UnidentifiedUnidentified speaker 22Proposed2:45:49

Thank you mayor. The council will meet in closed session on item 21 conference with legal counsel existing litigation pursuant to government code section 5 4 9 5 6 point 9 D 1 the case as listed on the agenda. The second item number 22 will be closed session conference with real property negotiators Pursuant to Government Code Section 54956.8, the property, the proposed lease of premises is located at Collins Business Park.

The agency negotiators are as listed on the agenda, the negotiating parties, Collins Business Park TIC and under negotiation price in terms of payment. Thank you.

UnidentifiedUnidentified speaker 1Proposed2:46:33

I'd like to make a motion to adjourn the closed session. Second. All right, please vote.

UnidentifiedUnidentified speaker 2Proposed2:46:42

Motion carries by unanimous vote of those present.

UnidentifiedUnidentified speaker 1Proposed2:46:45

Where are you guys from? This is a requirement or did you just think it would be... Okay, you didn't want to just come here for fun?

CommentLive NationProposed · by introduction2:46:56

You know we started at three o'clock.

UnidentifiedUnidentified speaker 1Proposed2:46:59

Yeah that's okay I didn't notice. We're going to go to closed session so the meeting is basically over but Yeah, sure. But we got to do it quick because I've got to go to closed session.

UnidentifiedUnidentified speaker 23Proposed2:47:56

The last thing we're talking about is changing some of the ways... Thank you so much. Yeah. Okay. Thank you. Thank you. I think we're good. Thank you. Thank you. Thank you. Yeah, that's all. Okay. Thank you. State yourself. Okay.

3:10 – 3:302 turns

UnidentifiedUnidentified speaker 20Proposed3:10:45

See you tomorrow.

UnidentifiedUnidentified speaker 23Proposed3:11:51

He's starting to get better. Thank you. Okay. Thank you. Okay. I know, yeah. That's what we had to do. She has to be twice because she's... So, no, I don't have any more. It was New York and then I'm sure Texas. I don't know if it's zero. Youth Finance Charter. You've done so good. Thank you. I don't know. Okay, sorry. Thank you. Thank you. Okay. Okay. There are two oral Thank you.

Oh. Meeting adjourned. Thank you. Yes. Thank you.

3:31 – 3:324 turns

UnidentifiedUnidentified speaker 1Proposed3:31:38

Ladies and gentlemen we are back from closed session. I would like to ask our city attorney the report on closed session.

UnidentifiedUnidentified speaker 22Proposed3:31:45

Thank you Mayor Council met in closed session on the two items as listed direction was given no reportable action was taken

UnidentifiedUnidentified speaker 1Proposed3:31:54

thank you. All right, this brings us to adjournment. The adjourned regular joint meeting of the El Cajon Council, El Cajon Housing Authority, successor agency to the El Cajon Redevelopment Agency held this 22nd day of September 2026 is adjourned until Tuesday October 13th, 2026 at three o'clock p.m., thank you.

UnidentifiedUnidentified speaker 21Proposed3:32:27

See you guys.