[1. CALL TO ORDER]
[00:00:06]
THE MEETING TO ORDER AND A LIVE WEBCAST OF THE MEETING MAY BE VIEWED ON THE CITY'S WEBSITE.
NOTICE AGENDA AND INFORMATION ON THE CITY OF NATIONAL CITY'S WEBSITE INFORMS MEMBERS OF THE PUBLIC THAT THEY MAY SUBMIT A GENERAL PUBLIC COMMENT OR A PUBLIC COMMENT ON A SPECIFIC AGENDA ITEM IN A NUMBER OF WAYS, EITHER IN PERSON IN THE CITY COUNCIL BY SUBMITTING ONE OF THOSE SALMON COLORED SLIPS THAT ARE AVAILABLE AT THE BACK OF THE, UH, CHAMBERS HERE, OR BY EMAILING NO LATER THAN FOUR HOURS BEFORE THE MEETING, ALL WRITTEN COMMENTS RECEIVED WILL BE DISTRIBUTED TO THE CITY COUNCIL PRIOR TO THE MEETING AND PUBLISHED ON THE CITY WEBSITE IF RECEIVED BY THE DEADLINE.
AND DO WE HAVE, UH, OUR TRANSLATORS? YES.
SO IF THEY COULD GIVE THEIR THEIR INTRODUCTION, PLEASE.
UH, THE FOLLOWING WILL BE AN ANNOUNCEMENT IN SPANISH, AND THANK YOU, MAYOR.
UH, WITH THAT WE COULD ALL ALSO SILENCE ANY, UH, CELL PHONES OR ANY DEVICES, UH, IN THE CHAMBER.
WITH THAT, UH, I'D LIKE TO ASK THE, UH, CLERK TO, UH, PLEASE DO THE ROLL CALL.
WITH THAT, IF WE COULD PLEASE STAND FOR THE PLEDGE OF ALLEGIANCE AND I'LL ASK MEMBER YAMANI, UH, PLEASE STAND.
BEGIN IGI TO FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FORM STANDS, ONE NATION UNDER GOD ANY INDIVISIBLE FOR LIBERTY AND JUSTICE.
WE'LL, NOW HERE ARE PUBLIC COMMENTS ON THE, UH, ITEMS THAT ARE BEFORE US ON THIS AGENDA.
AND, UH, DO WE, I DON'T SEE ANY SPEAKERS.
[5. CONSENT CALENDAR]
THAT, WE WILL MOVE ON TO CONSENT CALENDAR.UH, BEFORE WE BEGIN THE CALENDAR, DOES ANY, UH, COUNCIL MEMBERS HAVE ANY CONFLICT OR EX PARTE DISCLOSURES ON ANY OF THE CONSENT ITEMS? ITEM IN THIS CASE SEEING NO RESPONSE.
UH, NEXT WE GO ON TO, UH, THE CONSENT CALENDAR.
AND DO WE HAVE, DO WE HAVE A MOTION TO ACCEPT THE CONSENT CALENDAR? UH, IS THERE A PRESENTATION FOR 5.1 IF WE PULL IT? YEAH.
I'M PUT IT MR. MAYOR, FIVE ONE.
YOU'D LIKE, YOU'D LIKE TO PULL IT.
AND, UH, IN THAT CASE, UM, WHO WOULD BE MAKING, I BELIEVE THAT'D BE ANGELINA.
[5.1 Caltrans Clean CA Grant for the National City Revitalization & Employment Pathway Program.]
EVENING MAYOR.COUNSEL, MEMBERS OF THE PUBLIC AND STAFF BEFORE YOU TONIGHT WE HAVE A CLEAN CALIFORNIA GRANT FOR $600,000 AND, UH, THE TOTAL PROJECT COSTS WILL BE $775,000 FOR, UH, THE CLEAN, UH, NATIONAL CITY REVITALIZATION, UM, PROGRAM, UH, THAT WILL, UH, BENEFIT OUR RESIDENTS, BUSINESSES AND STAKEHOLDERS IN THE COMMUNITY.
IF YOU HAVE ANY QUESTIONS, I CAN TAKE THEM AT THIS TIME OR I CAN GO INTO FURTHER DETAIL.
IT IS UP TO THE COUNCIL QUESTION.
YOU SAID THE, UM, MS. ANGELITA, YOU SAID THE GRANT IS 600 AND THE COST IS 700.
UH, THE TOTAL RULE PROJECT WILL BE $775,000.
WHERE'S THIS? UH, SO YEAH, I'M, I'M REALLY EXCITED THAT, UH,
[00:05:01]
CALTRANS, UH, OFFERED THIS OPPORTUNITY TO THE CITY, UH, TO APPLY FOR THEIR CLEAN CALIFORNIA, UH, PROGRAM.UH, THE TOTAL PROJECT COST, UH, TO, UM, DO ALL OF THE CLEANUP AND, UH, REVITALIZATION THAT WE HAVE PLANNED FOR THE CITY, UM, IS $775,000, MEANING THAT THE CITY, UM, AND OUR COMMUNITY PARTNERS WITH IN KIND DONATIONS AND THE USE OF STAFF TIME WILL EQUAL TO, UM, $775,000 PLUS.
UH, SO THAT MEANS, AGAIN, THAT WE'LL BE LEVERAGING STAFF TIME, UM, AS WE'VE DONE WITH PREVIOUS PROGRAMS AND GRANTS TO MOVE, UM, MANY OF OUR, UH, EFFORTS FORWARD TO CLEAN OUR COMMUNITY AND, UH, BE ABLE TO WORK WITH BUSINESSES AND OUR RESIDENTS.
AND THIS IS IN COLLABORATION OR, UM, WORKING WITH, UH, NEIGHBORHOOD SERVICES? IT IS, YEAH.
UM, SO PUBLIC WORKS, NEIGHBORHOOD SERVICES, OUR HOME TEAM, UH, FIRE DEPARTMENT, ANYONE WHO WANTS TO KIND OF JUMP ON BOARD, UH, AND ALL OF OUR COMMUNITY, UH, PARTNERS, UH, WE HOPE TO REALLY ENGAGE THE COMMUNITY WITH A LOT OF OUTREACH.
UH, WE DO HAVE AN OUTREACH PLAN AND, UM, MORE INFORMATION IS GONNA BE COMING TO THE COUNCIL.
AND I ALSO WANNA MENTION THAT, UM, SOMETHING THAT WAS WRITTEN INTO THE GRANT WAS THAT, UM, UH, SOME FORM OF CLEANUP AND OUTREACH WILL BE DONE IN EACH COUNCIL DISTRICT.
SO WE'LL BE WORKING WITH EACH COUNCIL MEMBER TO, UM, CONDUCT SOME, SOME ACTIVITY WITHIN YOUR DISTRICT.
UM, THANK YOU FOR, UH, GOING AFTER THIS GRANT.
UM, MS. ANGELITA, UM, YOU KNOW, I'M IN $600,000 IS A LOT OF HELP FOR OUR COMMUNITY.
I AM, I'M, I SURE HOPE THAT THAT 165, UM, THAT WILL BE LOCAL MATCH YOU SAID IN KIND IN LEVERAGING THE PARTNERS AND OUR STAFF.
I, WITH THAT SAID, MR. CHAIRMAN, I SO MOVE FIVE, THAT ONE.
SEEING NO OTHER DISCUSSION, PLEASE VOTE.
MOTION APPROVE WITH COUNCIL MEMBER BUSH ABSENT.
AND THIS WILL BE COMING BACK TO US IN OTHER REPORTS.
[6.1 Presentation of Business License Tax (Gross Receipts Tax) Study and Direction on Potential Tax Model and Next Steps.]
WE GO ON OUR NEXT ITEM.THIS IS A PRESENTATION ON A BUSINESS LICENSE TAX, GROSS RECEIPTS, TAX STUDY AND DIRECTION.
AND I'LL TURN IT OVER TO OUR, UM, ACTING, UH, UM,
WE GET ALL THESE TITLES OUT HERE.
WE GOTTA CUT SOME FUN LINES ANYMORE.
UM, MARTA JUAREZ, ACTING DEPUTY CITY MANAGER, UH, SITTING IN TODAY.
UM, THANK YOU MAYOR, VICE MAYOR, COUNCIL MEMBERS, UH, STAFF AND MEMBERS OF THE PUBLIC.
UM, TODAY WE ARE HERE TO PRESENT, UM, THIS ITEM REGARDING A POTENTIAL BUSINESS LICENSE TAX OR GROSS RECEIPTS TAX STUDY THAT WAS COMPLETED.
JUST TO GIVE A LITTLE BIT OF BRIEF CONTEXT, OUR, OUR, OUR TEAM WILL PROVIDE SOME MORE DETAIL.
BUT, UM, AS YOU MAY RECALL, IN THE PRIOR FISCAL YEAR BUDGET PROCESS, COUNCIL DID DIRECT STAFF TO IDENTIFY REVENUE OPPORTUNITIES FOR THE CITY, WHICH, UH, WE'VE DONE, AND THIS IS ONE OF THEM.
SO, UM, THIS, UH, POTENTIAL GROSS RECEIPTS TAX, UH, WAS IDENTIFIED AS ONE OF THE INITIATIVES THAT, UM, SHOWED, UM, POSSIBILITY OF, OF INCREASING THE REVENUE STREAMS FOR THE CITY.
AND SO IN DECEMBER, COUNCIL AUTHORIZED ENTERING INTO A CONTRACT WITH HDL AND PERFORMING THIS STUDY ON THE FEASIBILITY OF, OF, UM, BRINGING A GROSS RECEIPTS TAX TO OUR CITY.
SO NOW I'M JUST GONNA HAND IT OVER TO PEDRO GARCIA, WHO IS OUR COMMUNITY DEVELOPMENT SPECIALIST, WHO'S LEADING OUR ECONOMIC DEVELOPMENT EFFORTS FOR THE CITY.
FOR THE RECORD, MY NAME IS PEDRO GARCIA, UH, COMMUNITY DEVELOPMENT SPECIALIST THREE FOR THE CITY WORKING IN THE CITY MANAGER'S OFFICE.
UM, AS MARTHA ALREADY MENTIONED BEFORE, YOU TONIGHT, UH, IS A PRESENTATION FROM HDL THAT COMES BEFORE US AS A RESULT OF COUNSEL APPROVING A $50,000 CONTRACT WITH HDL TO PERFORM A BUSINESS LICENSE TAX STUDY.
SO THIS EVENING WE'LL BE GOING THROUGH THAT STUDY AND GOING THROUGH THE DIFFERENT FINDINGS AND ELEMENTS OF WHAT A BUSINESS LICENSE TAX IS, OR GROSS RECEIPTS TAX ALSO KNOWN.
AND, UH, AND THEN WE'RE ALSO GONNA BE LOOKING FOR DIRECTION FROM COUNSEL, UH, AFTER.
[00:10:01]
SO WHETHER OR NOT WE WANNA DO A GROSS RECEIPTS TAX, IF SO, WHICH MODEL, AND THEN PROCEEDING THAT, WHAT TYPE OF DIRECTION TO DO IN REGARDS TO PUBLIC OUTREACH, POLLING, SO ON AND SO FORTH.UM, BEFORE WE GET, BEFORE I PASS IT ON TO HDL, I DO WANT TO GIVE THANKS TO THE WORKING GROUP.
THIS WAS NOT PUT TOGETHER BY MYSELF.
UM, WE HAVE A INTERNAL WORKING GROUP FOR THIS, AND I JUST WANT TO GIVE THANKS TO, UH, OUR CITY ATTORNEYS, HEIDI AND RICHARD, UM, OUR DIRECTOR OF FINANCE, RACHEL, OUR CITY CLERK, SHELLY AND OUR TWO CITY MANAGERS, MARTHA AND ALEX.
UM, SO THANK YOU TO EVERYONE WHO PARTICIPATED IN THIS.
IT'S BEEN A LONG PROCESS, AND I WANT TO PASS IT ON TO KEN DURAN FROM HDO TO BEGIN THE PRESENTATION.
IT'S, UM, OUR PLEASURE TO BE ABLE TO PRESENT TO YOU TONIGHT THE, UM, UH, RESULTS OF OUR TAX STUDY.
UM, SO WHAT WE DID WAS WE LOOKED AT, UM, ACTUALLY THREE DIFFERENT THINGS.
WE LOOKED AT CURRENTLY WHAT WE CALL THE REGISTRY ANALYSIS, WHICH IS WHAT YOUR CURRENT CONDITIONS ARE.
THEN WE LOOKED AT JURISDICTION COMPARISONS, UM, THAT WE LOOKED AT MODELS FOR OTHER CITIES THAT ARE COMPARABLE TO YOU.
AND THEN WE ACTUALLY LOOKED AT COM, UH, ACTUALLY PRESENTING SOME MODELS FOR YOU TO MOVE FORWARD.
SO, UM, SO THE PURPOSE OF THE STUDY WAS TO ASSESS THE PERFORMANCE OF THE CURRENT TAX STRUCTURE, UH, EVALUATE WHAT YOUR CURRENT CONDITIONS ARE, UM, AND THE FRAMEWORK THAT YOU'RE CURRENTLY PERFORMING UNDER.
UH, AND I SAID, UH, LOOKED AT BENCHMARK AGAINST YOUR PEER JURISDICTIONS, IDENTIFIED OPPORTUNITIES FOR IMPROVEMENT, AND THEN PROVIDE A CLEAR PATH FORWARD IN DECISION MAKING THAT YOU CAN, UM, MOVE FORWARD WITH.
SO YOUR CURRENT, UM, MODEL, UM, THIS IS KIND OF SHOWS YOU WHAT YOUR CURRENT CONDITIONS ARE AS FAR AS YOUR CURRENT REVENUE STREAMS, UM, AND YOUR, UM, LICENSING PERIOD BASED UPON, UH, THE, FROM 2018 TO 2019 THROUGH CURRENT CONDITIONS.
SO YOU CAN KIND OF SEE WHERE YOUR CURRENT REVENUE STREAM, UM, IS, UH, RIGHT NOW.
AND THEN IF WE LOOKED AT, YOU KNOW, SOME OF THE, UM, YOU KNOW, PROJECTIONS OR LOOK, LOOK AT THE MODELS.
UM, AND AS FAR AS YOUR ADMINISTRATIVE COSTS, UM, AS FAR AS THE, UM, CURRENT REGISTRATION, UH, ADMINISTRATION, UH, HDL DOES PERFORM YOUR H UH, YOUR, UM, BUSINESS LICENSE REGISTRATIONS.
SO THIS IS KIND OF SHOWS YOU WHAT THE ADMINISTRATIVE COSTS ARE FOR THOSE.
UM, SO BASED UPON THE NUMBER OF OF BUSINESS LICENSE REGISTRANTS, UH, YOU CAN SEE, YOU KNOW, THE NUMBER OF BUSINESSES THAT YOU HAVE REGISTERED IN YOUR COMMUNITY, UM, DURING THESE PERIODS.
AND YOU CAN SEE, UM, YOU KNOW, THAT THERE IS PRETTY, IT'S, IT'S PRETTY FLAT RIGHT NOW.
UM, SO YOU KNOW, THAT CAN INCREASE OVER TIME, BUT RIGHT NOW IT'S, IT'S PRETTY FLAT.
AND THEN THIS IS BASED UPON COVID HIT THE TOTAL NUMBER OF, UM, BUSINESS REGISTRANTS.
YOU HAVE, UH, 5,480 BUSINESSES THAT ARE CURRENTLY REGISTERED.
THIS SHOWS YOU, UM, YOU KNOW, THE BREAKDOWN OF WHAT THOSE ARE BY CATEGORY.
SO THAT KIND OF GIVES YOU A LITTLE BIT OF UNDERSTANDING ABOUT WHAT THE, UM, YOU KNOW, MIX IS OF YOUR BUSINESSES.
AND THEN THIS IS ACTUALLY THE GROCERY OR THE, THE REVENUE BASED UPON THOSE.
AND YOU CAN SEE THAT THERE IS THE, UH, RESIDENTIAL AND APARTMENT, WHAT NUMBER THEIR PAGES, UM, HOW, UM, CATEGORY IS IS A FAIRLY LARGE GROUP, AND THEN YOUR RETAIL SALES IS ANOTHER LARGE GROUP.
AND THEN YOU'VE GOT THE OTHER CATEGORY, WHICH IS A LOT OF THE OUTSIDE BUSINESSES.
SO THE TOP, UH, 100 BUSINESS ACCOUNTS REPRESENT ABOUT 57% OF YOUR REPORTED GROSS RECEIPTS.
AND 29, UH, 29% OF THOSE, UH, ARE THE TOTAL AMOUNT IN.
[00:15:01]
YEAH.SO IN OTHER WORDS, OF THE GROSS RECEIPTS OF ALL OF OUR BUSINESSES OF TOP 100 PRODUCE 50, 57, YEAH.
ABOUT 57% OF THAT, OF THAT MONEY IS FROM THEM.
BUT IN REVENUE, THEY ONLY PRODUCE AS FAR AS TO THE CITY TAX REVENUE ONLY 29%.
AND THAT'S BECAUSE ALMOST EXACTLY HALF.
AND, AND THAT'S WHY WHEN WE GET INTO THE MODELS THAT WE'RE GONNA BE LOOKING AT, OKAY, IT'S DISPROPORTIONATE RIGHT NOW BECAUSE YOU'VE GOT A LOT OF YOUR BUSINESSES WHO ARE GENERATING THE MOST GROSS RECEIPTS WHO ARE NOT PAYING THEIR FAIR SHARE.
SO IT'S, IT'S KIND OF AN INEQUITY, UH, MODEL RIGHT NOW.
SO THE IN GENERAL GROSS RECEIPTS MEANS THE TOTAL AMOUNT OF REVENUE THAT'S RECEIVED, UM, OR ACCRUED BY A BUSINESS FROM ALL ACTIVITIES CONDUCTED WITHIN THE CITY WHERE THE RES, WHERE THE AMOUNT OF CASH IS ACTUALLY GENERATED.
AND SO THERE ARE THE TYPES OF REVENUE FOR GROSS RECEIPTS ARE SALES AND USE TAX FEES, RENTS, AND OTHER COMPENSATION.
SO, SO WHEN WE LOOK AT, UM, OTHER CITIES IN YOUR, YOU KNOW, KIND OF COMPARABLE CITIES, YOU'RE ON THE LOWER SIDE, UM, AS FAR AS THE GROSS RECEIPTS, UM, SIDE.
AND SO THAT YOU CAN SEE THAT, UM, YOU KNOW, THERE ARE OTHER CITIES THAT ARE ACTUALLY MORE COMPARABLE IN, UM, WHAT THEY GENERATE AS FAR AS THE GROSS RECEIPTS SIDE.
SO, UM, I THINK THERE'S, THERE IS OPPORTUNITY FOR YOU TO GENERATE MORE REVENUE IF YOU MOVE TO A GROSS RECEIPTS MODEL.
AND THEN THIS IS LIKE A FIVE YEAR, UM, TREND FOR YOU AND OTHER CITIES.
IF YOU LOOK AT THE OTHERS, UM, YOU KNOW, THERE'S, IT'S A LITTLE BIT MORE COMPARABLE, BUT, UM, IT'S, IT'S NOT REALLY A VERY HIGH TREND, BUT IT LOOKS, BUT YOU CAN SEE THE, THE, THE AMOUNT OF MONEY THAT THEY GENERATE FROM, GO BACK ONE SLIDE SURE.
AIRING, AND THE MAIN LINE WE'RE LOOKING AT IS PROBABLY IS THAT REVENUE PER CAPITA, I WOULD ASSUME.
BUT WHEN I TAKE A LOOK AT THOSE THAT HAVE LOWER THAN US, UM, TWO OF 'EM, THE LAST TIME THAT THEY, THAT THEY UPDATED THEIRS WAS IN 1985 AND THE OTHER ONE WAS 1995.
AND THE ONE DIRECTLY BELOW US IS 2013.
SO IT'S BEEN A LONG, THEY ARE WAY OUT OF DATE ON THEIR, OF THEIR UPDATING.
AND, UH, SO I THINK THAT'S ANOTHER THING TO, TO, TO LOOK AT BECAUSE OTHERWISE IT'S NOT, IT'S, IT'S NOT AN APPLES TO APPLES TYPE OF THING.
UM, IN OTHER WORDS, THERE HAS, IF YOU LOOK AT THE REST OF 'EM THERE, MOST, THE REST OF 'EM HAVE BEEN UPDATED, UH, MUCH MORE, UH, UH, MUCH MORE CURRENT.
AND SO THAT'S WHY I THINK IT'S IMPORTANT TO, UH, ACKNOWLEDGE THE FACT THAT YOU NEED TO KEEP UP WITH, UM, YOU KNOW, KEEPING UP WITH THE MARKET CONDITIONS.
UM, AND SO OTHER CITIES HAVE NOT DONE THAT AS WELL.
SO I THINK THAT'S IMPORTANT TO RECOGNIZE THAT, THAT YOU'RE, YOU'RE PASSED OVERDUE EVEN COMPARED TO OTHER CITIES THAT HAVE NOT UPDATED THEIR, YOU KNOW, UH, THEIR BUSINESS LICENSE.
DO YOU ENVISION THIS AS A OPPORTUNITY FOR US TO ASK QUESTIONS THROUGHOUT THE COURSE OF THE PRESENTATION, OR DO WE WAIT UNTIL THE END? JUST A CLARIFICATION ONE, THESE CHARTS, BECAUSE ONE OF THE THINGS THAT'S CHARTS AREN'T NUMBERED, SO IT'S GONNA BE HARD TO, FOR US TO GO BACK AND SAY, CAN WE SEE, YOU KNOW, CHART SUCH AND SUCH? SO THERE'S BURNING CLARIFYING QUESTIONS.
SO IF WE MOVE ON TO, AGAIN, THIS IS A, UM, FIVE YEAR REVENUE TREND FOR YOUR CITY, UM, IN COMPARED TO CHULA VISTA.
SO WE DID A DEEP, DEEP DIVE OF CHULA VISTA, OCEANSIDE, AND VISTA AND YOUR CITY, SO YOU CAN KIND OF SEE WHERE YOU'RE AT IN COMPARISON TO THOSE CITIES.
SO THIS JUST KIND OF GIVES YOU A LITTLE BIT OF A TREND REVENUE FOR, UH, THOSE OTHER COM UH, COMMUNITIES THAT WE COMPARE TO CHAIR.
WE SEE THIS AGAIN, SIR, FOCUS ON CHULA VISTA.
I'M SORRY, SHE WANTS TO SAY, OH, THEY WERE, UM,
[00:20:01]
SO YOU MENTIONED THREE CITIES.SO YOUR CITY IS THE GREEN LINE, WHICH IS ON THE BOTTOM, WHICH IS THE FLAT LINE.
UH, CHULA VISTA IS THE BLUE LINE OCEAN, UH, VISTA IS THE YELLOW LINE, AND THEN OCEANSIDE IS THE RED LINE.
AND WHAT WERE THE ELEMENTS THAT YOU USED? WHY THOSE THREE CITIES? I'M SORRY, WHAT ELEMENTS, WHY THOSE THREE CITIES? WE, WHAT WE DID WAS WE IDENTIFIED, UM, EIGHT CITIES THAT WE, UH, COMPARED TO, BUT WE CHOSE TO IDENTIFY THE THREE THAT WE FELT WERE MORE COMPARABLE TO YOUR COMMUNITY.
AND SO THAT'S WHAT WE DID THE DEEP DIVE ON THOSE THREE, THE, UH, CHULA VISTA, OCEANSIDE, AND VISTA.
THEN ONE OF THE, UM, ANALYSIS THAT WE DID WAS WE LOOKED AT THE CITY OF PICO RIVERA, WHICH IS NOT WITHIN YOUR REGION, UM, BUT IT ACTUALLY IS SOMETHING THAT, UM, WE DID RECENTLY WHERE WE ACTUALLY INCREASED THEIR REVENUE, UM, BECAUSE OF CHANGING TO A GROSS RECEIPT.
SO WE JUST KIND OF WANTED TO DEMONSTRATE HOW MUCH OF AN INCREASE THERE'S POTENTIAL FOR A CITY MOVING TO A GROSS RECEIPTS MARKET.
WE ALSO LOOKED AT THE CITY OF TRACY, UM, WHICH AGAIN, WAS ANOTHER CITY THAT, UM, WE INCREASED THEIR REVENUE BY MOVING TO A GROSS RECEIPTS MARKET BY OVER 443, UH, PERCENT, UM, BECAUSE OF THE CHANGING THE MODEL.
SO AGAIN, WE LOOKED AT NATIONAL CITY, CHULA VISTA, OCEANSIDE AND VISTA, AND THEN THAT'S WHEN WE DID MORE OF A DEEP DIVE.
AND SO WHAT WE LOOKED AT WAS MORE OF WHAT IS THE, UM, ESTIMATED REVENUE, UM, BASED UPON THE TYPES OF MIX OF, UH, BUSINESSES.
AND SO THIS KIND OF GIVES YOU A KIND OF A, A PROJECTION OF WHAT THAT CAN LOOK LIKE FOR, UH, THE VARIOUS CATEGORIES.
SO WE LOOKED AT THREE DIFFERENT MODELS.
UH, WE LOOKED AT INCREASING THIS, YOUR, YOUR EXISTING MODEL.
IF WE JUST KEPT THE MODEL AT THE WAY IT IS AND INCREASED IT BY 40%, UM, THEN, UM, WE, YOU KNOW, DID SOME ESTIMATIONS ON THAT.
THIS IS THE EASIEST ONE TO IMPLEMENT BECAUSE YOU ALREADY HAVE THIS CURRENT MODEL.
UH, IT DOES INCREASE REVENUE, BUT IT DOES NOT CREATE ANY EQUITY, UM, FOR THE, UH, OTHER BUSINESSES.
SO THAT'S, THAT'S MODEL NUMBER ONE.
UH, THE ESTIMATION IS THAT IF WE JUST INCREASED IT BY 40%, HERE IS THE, THE DOLLAR AMOUNT THAT COULD BE GENERATED, UM, UH, COULD BE INCREASE OF ABOUT THREE, UH, 300 AND, OR EXCUSE ME, $304,000, UM, JUST BY INCREASING THE, YOU KNOW, EXISTING MODEL.
UM, SO IT'S PROBABLY THE LEAST LIKELY ONE THAT WE WOULD RECOMMEND.
SO WE THEN ALSO LOOKED AT, UM, A SINGLE GROSS RECEIPTS MODEL, WHICH WOULD, UM, MAKE THE GROSS RECEIPTS FOR EACH BUSINESS FOR, UM, UH, HAVE A FLAT RATE.
UM, IT'S PRETTY EASY TO IMPLEMENT.
UM, IT WOULD BOOST REVENUE FOR THE CITY.
UH, IT WOULD BE THE SAME RATE FOR ALL OF THE BUSINESSES.
IT'S PRETTY, UM, EASY TO IMPLEMENT, BUT IT REALLY DOESN'T, UM, IT'S NOT EQUITABLE FOR A LOT OF THE BUSINESSES.
WE ESTIMATE THAT, THAT THAT COULD GENERATE, UM, UH, UH, THIS AMOUNT.
UH, IT COULD GENERATE ABOUT, UH, OVER $5 MILLION.
[00:25:06]
UM, SO THE LAST MODEL IS THE VARIABLE RATE GROSS RECEIPTS, WHICH IS THE MOST EQUITABLE ONE BECAUSE IT ACTUALLY TAKES INTO CONSIDERATION THE, UM, DIFFERENTIATION BETWEEN BUSINESSES AS FAR AS WHAT THEIR GROSS RECEIPTS ARE.SO THIS WOULD BE A STRUCTURE THAT, YOU KNOW, YOU COULD USE, AND THEN THE MAXIMUM, UM, REVENUE GENERATION COULD BE OVER $7 MILLION.
UM, SO THIS IS PROBABLY THE MODEL THAT ACTUALLY GENERATES THE MOST REVENUE OPPORTUNITY FOR YOU.
AND THIS JUST KIND OF GIVES YOU A COMPARISON OF THE, UH, DIFFERENT MODEL GENERATIONS.
AND THIS ALSO KIND OF DISPLAYS THAT FOR YOU.
SO THIS KIND OF GIVES YOU A GENER, UH, A KIND OF A, A BREAKDOWN OF THE ESTIMATED REVENUE BY BUSINESS CATEGORY, UH, FOR THE DIFFERENT MODELS.
AND SO AS FAR AS THE NEXT STEPS, THIS, UM, ANY TYPE OF CHANGE TO YOUR BUSINESS LICENSE TAX WOULD REQUIRE A BALLOT MEASURE.
SO THIS, UM, WOULD REQUIRE, UM, IF YOU WANTED TO DO POLLING, UH, TO, UH, SEE THE BUSINESS CLIMATE APPETITE FOR CHANGING YOUR BUSINESS LICENSE, THAT WOULD BE THE NEXT STEP.
UM, YOU AND YOUR STAFF CAN ENGAGE IN STAKEHOLDER MEETINGS, BUSINESS, UH, OPPORTUNITY MEETINGS, UH, TO, TO, YOU KNOW, DETERMINE WHAT THE COMMUNITY OUTREACH, UM, UM, WOULD BE.
AND THEN DRAFTING AN ORDINANCE THAT WOULD BE PUT ON YOUR EITHER NOVEMBER BALLOT OR IF YOU WANTED TO DO SOMETHING.
AND THEN THESE ARE JUST THE APP APPENDICES THAT, UM, ARE ATTACHED TO THAT.
LET'S LEAVE IT ON THE NEXT STEPS.
WHAT, LET'S LEAVE IT ON THE NEXT STEPS.
AND THEN I'LL ACT, TURN IT OVER TO ALEX TO TALK ABOUT THE NEXT STEPS.
SO THAT, UH, CONCLUDES THE PRESENTATION FROM HDL.
SO, UH, WE CAN HEAD IT OUT, HEAD IT BACK TO YOU, MAYOR.
UM, THERE'S NOTHING ELSE FROM ME, AND WE CAN JUST GET INTO QUESTIONS OR PUBLIC COMMENT.
LET ME JUST A CLARIFICATION QUESTION.
UH, GOING BACK TO THE SLIDE IMMEDIATELY BEFORE THE MODELS, THE ONE RIGHT BEFORE IT WAS BUSINESS SCENARIOS, ESTIMATED REVENUES.
AND PLEASE, IN THE FUTURE, THE SLIDES, MAKE SURE THEY'RE NUMBERED SO THAT WE CAN GO BACK TO SLIDE NUMBER, WHATEVER.
IT WAS, NO, NO, IT'S, WHAT SLIDE ARE YOU LOOKING FOR, MAYOR? IT'S THE ONE THAT'S, IT'S RIGHT BEFORE RIGHT? BE THE SLIDE BEFORE THE SLIDE THAT SAYS THE MODELS.
YOU MEAN THERE'S NO EIGHT? NO, THAT'S JUST PAGES IN OUR, IN OUR AGENDA.
UH, NO, IT WOULD GO, IT WOULD BE GO BEFORE THE MODELS.
IT'S, IT'S THE ONE RIGHT BEFORE YOU.
THAT ONE RIGHT THERE, RIGHT, RIGHT THERE.
YEAH, I CAN SEE THIS CHART, YOU KNOW, ONE WAY OR ANOTHER BEING USED FOR OR AGAINST THIS WHOLE THING.
AND THE REASON WHY, JUST LIKE A LOOK THERE AT DENTAL OFFICE AND LOOK AT US IN CHULA VISTA.
SO WE'RE AT 9 38 AND THEY'RE AT 1050.
SO REALLY IS INDIFFERENCE UNTIL YOU LOOK AND OURS, THAT'S WHAT WE CHARGE SHULA VISTA, THAT'S PER EMPLOYEE.
THOSE HAVE 10 EMPLOYEES IN THIS MODEL.
SO THAT WOULD BE LIKE $10,000 TO R 900 SOME ODD DOLLARS IS WHAT YOU CHARGE THAT BUSINESS, RIGHT, SIR? YOU, YOU SEE WHAT I'M SAYING? BECAUSE IF YOU, IF YOU LOOK UP ON TOP UP HERE, IT SAYS CHULA VISTA PER EMPLOYEE.
SO IT'S, SO IT'S, THAT'S, THAT'S A, THAT'S AN AMOUNT PER EMPLOYEE WHEREIN US IT'S PER BUSINESS.
[00:30:01]
SO THEN, JUST FOR CLARIFICATION ON THE MAYOR'S POINT, SO THEN, JUST SO I UNDERSTAND, SO YOU'RE SAYING THAT THAT ROW ON DENTAL OFFICE UNDER THE CHULA VISTA COLUMN SHOULD BE 10,000, OR IF YOU'RE MM-HMMIF YOU'RE DOING IT BY BUSINESS.
IS THAT, IS THAT ACCURATE? CAN WE GET STAFF? DID YOU UNDERSTAND THAT? DID THAT SEEMS TO MAKE SENSE TO ME? IS THAT NOT, I'M A LITTLE CONFUSED BY THE QUESTION.
I'M GONNA GO, I'M GONNA GO OVER HERE, IF YOU DON'T MIND.
YOU PROBABLY NEED A LASER POINTER.
THIS, THIS COLUMN IS PER EMPLOYEE, RIGHT? THIS IS PER BUSINESS, RIGHT? SO THIS, THE MODEL THAT YOU'VE GOT HERE, THIS, THIS EMPLOYEE, THIS BUSINESS HAS 10 EMPLOYEES, RIGHT? SO THIS HERE WOULD BE $10,000 FOR THE BUSINESS, UH, MAYOR, THE WAY THAT IT'S BROKEN DOWN IN CHULA VISTA, UH, I HAVEN'T DONE PERSONAL, YOU KNOW, DEEP DIVE INTO IT.
BUT USUALLY THE WAY IT IS, IS THAT NUMBER IS WHAT THEY'RE PAYING BASED OFF OF THE AMOUNT OF EMPLOYEES.
SO SIMPLE MATH WOULD BE ABOUT A HUNDRED BUCKS A PERSON.
SO WHAT YOU'RE SAYING, SO THIS IS NOT PER EMPLOYEE, THIS IS TOTAL PER BUSINESS.
THE PER EMPLOYEE PARENTHESES IS TO DESCRIBE THE TYPE OF BUSINESS LICENSE TAX THAT THEY HAVE.
YOU SEE WHAT I'M SAYING? HOW THAT CAN BE CONFUSING THOUGH.
SO IS IT, SO I THINK MY QUESTION IS, IS THAT CHART, IS THAT FIGURE ACCURATE OR NOT? BECAUSE IF NOT, IF IT'S ACCURATE, THEN IF, IF WHAT I'M HEARING THEM SAYING IS THAT THEY CHARGE PER EMPLOYEE AND IF IT HAD 10 EMPLOYEES, IT WOULD BE $1,050.
AND THAT'S WHY IN THE OTHER ONES, IF YOU SEE OCEANSIDE AND VISTA, THEY CURRENTLY HAVE A GROSS RECEIPTS BUSINESS LICENSE TAX MODEL.
AND THAT'S WHY WE HAVE GROSS RECEIPTS JUST TO IDENTIFY THE DEEP DIVE CITIES AND WHAT THEY EACH WOULD CHARGE IN THIS HYPOTHETICAL BUSINESS SCENARIO.
SO THIS IS COMPARING APPLES TO APPLES.
SO A DENTAL OFFICE, A NATIONAL CITY THAT IS THE CURRENT FEE, COMPARABLE DENTAL OFFICE IN CHULA VISTA, THAT IS A FEE.
AND SAME THING FOR OCEANSIDE AND VISTA? YEAH, THAT'S CORRECT.
YEAH, THAT'S WHAT I WANTED TO CLARIFY TO MAKE SURE THAT WE WERE DOING IT WAS AN APPLES AVENUE.
THERE WASN'T DIFFERENT CATEGORIES.
UM, ESTIMATED REVENUE BUSINESS SCENARIO.
UH, I'M TRYING TO UNDERSTAND THIS SLIDE.
IT, ARE YOU SAYING THAT THESE ARE THE ANNUAL FEES TO EACH OF THESE BUSINESSES BASED OFF OF THE, UH, ESTIMATED REVENUE.
SO, BECAUSE WE CANNOT GIVE OF THAT THIRD COLUMN.
CORRECT? THAT'S WHAT YOU'RE ESTIMATING.
WE CAN'T GIVE EXACT RIGHT SCENARIO.
SO WE'RE JUST GIVING ESTIMATED, UH, EXAMPLE HYPOTHETICALS.
AND BASED ON THAT HYPOTHETICAL GROSS RECEIPTS COLUMN AMOUNT, THE THIRD COLUMN, YOU'VE EXTRAPOLATED IT TO WHAT EACH OF THESE FOUR CITIES WOULD CHARGE ON AN ANNUAL BASIS.
SO, UM, IF WE CAN MAYBE JUST ERASE, MAYBE NOT ERASE, BUT YOU KNOW, FROM YOUR MIND, FORGET THE PARENTHESES UP AT THE TOP COLUMNS THAT SAY PER EMPLOYEE OR GROSS RECEIPTS FOR CHULA VISTA OR OCEANSIDE VISTA.
UM, IT IS COMPARABLE ACROSS THE BOARD IF A BUSINESS, A DENTAL BUSINESS EARNED $3 MILLION IN THE CITY OF NATIONAL CITY, THE ANNUAL LICENSE FEE WOULD BE 9 38 AND 10 50 IN CHULA VISTA AND 1500 IN SO FORTH.
SO HERE'S WHAT I WANNA UNDERSTAND HERE IS IF WE MOVE TOWARDS ONE OF THE MODELS, LET'S SAY FOR EXAMPLE, MODEL THREE, HOW DOES THAT CHANGE THE ANNUAL FEE FOR THE NATIONAL CITY? HOW DOES IT CHANGE FROM 9 38? UH, I CAN JUST EXPLAIN IT PRETTY IN SIMPLE MATH IF YOU GUYS WOULD, IF YOU WOULD ALLOW ME, BUT IT'S, IF WE WERE USING $1 PER EVERY THOUSAND, SO IF WE WANNA STICK WITH THE DENTAL OFFICE, UH, $3 MILLION, THAT WOULD COME OUT TO ABOUT $3,000 AT $1 PER $1,000.
SO, SO THAT IS THE INFORMATION THAT TO ME ACTUALLY MATTERS.
SO IF I AM, UH, PROPOSING MODEL THREE, AND FOR THE RECORD THAT IS, YOU KNOW, BASED ON MY STUDIES AND BASED ON MY, UM, BRIEFINGS AND, AND, AND PREPARING FOR THIS ITEM, UH, I AM FAVORABLE TO MODEL THREE.
IF THAT WERE THE CASE, AND THERE WERE AN ADDITIONAL COLUMN IN THIS BUSY CONFUSING SLIDE ALREADY, I WOULD BE INTERESTED IN SEEING HOW IF WE MOVE TOWARDS A GROSS RECEIPT MODEL IN NATIONAL CITY, AND IN THIS CASE MODEL THREE, THAT
[00:35:01]
FEE JUMPS TO $3,000.AND NOW IF YOU COMPARE THAT FEE TO WHAT IS PRESENTLY WOULD HYPOTHETICALLY BE CHARGED IN CHULA VISTA, RIGHT NOW, SUDDENLY NATIONAL CITY IS CHARGING 3000 AND CHULA VISTA CONTINUES TO CHARGE 1000.
THAT TO ME BRINGS UP, UM, YOU KNOW, ADDITIONAL THOUGHTS.
UM, SO, SO THAT'S WHAT I'M TAKING AWAY FROM THIS SLIDE IS, IS WHAT I'M TRYING TO SAY.
I HAVE ADDITIONAL QUESTIONS, BUT ASK IF I CAN JUMP OFF OF THAT.
'CAUSE I, I'M A LITTLE CONFUSED HERE NOW ON THIS CHART, BECAUSE WE'RE SAYING THAT FOR CHULA VISTA, OCEANSIDE AND VISTA, THAT IS THEIR CURRENT MODEL? THAT IS CORRECT.
BUT THE NATIONAL CITY ONE, THAT IS OUR CURRENT MODEL.
AND OUR CURRENT MODEL IS PRETTY CLOSE TO THOSE OTHER, THOSE OTHER CITIES, NOT TOO FAR OFF OF IT.
BUT YOU'RE, WITH THE EXCEPTION OF APARTMENT COMPLEX RIGHT NOW, UH, CHULA VISTA IS CHARGING WHAT, $248 FOR A APARTMENT COMPLEX IF THERE'S AT 5 MILLION AND WE'RE ALREADY CHARGING 5,000, SO THAT'S ALL GONNA GO UP.
UH, ACTUALLY NO, MAYOR, UH, WELL IT DEPENDS ON WHAT MODEL'S ADOPTED, BUT IF WE'RE USING, WELL THAT'S THE OTHER THING I WAS ASKING.
'CAUSE IF YEAH, BECAUSE THAT'S GONNA CHANGE MY MODEL.
SO DEPENDING ON WHAT MODEL IS ADOPTED THIS EVENING OR IF ANY, UH, IF WE GO BACK TO USING THE $1 PER 1000, UH, HYPOTHETICAL, THE APARTMENT COMPLEX GENERATING AND GROSS RECEIPTS OF $5 MILLION WOULD PAY $5,000.
ESSENTIALLY THEY'D BE PAYING ROUGHLY THE SAME.
IF WE WERE TO INCREASE IT TO $2, IT WOULD GO UP TO 10,000.
IF WE INCREASED IT TO $3, IT WOULD GO UP TO 15,000.
UH, ONE THING TO NOTE THOUGH, ABOUT OCEANSIDE AND VISTA AND CHULA VISTA, THERE ARE DEEP DIVE CITIES THAT, UH, HDL AND THE CITY IDENTIFIED FOR COMPARISONS.
BUT THAT DOESN'T MEAN THAT THEY ARE, UH, MODERN GROSS RECEIPTS TAX MODELS.
UH, CHULA VISTA IS BEHIND THE TIMES AS WELL.
THEY DON'T GENERATE, AND WE CAN GO BACK TO THE SLIDE WHERE WE HAVE ALL THE CITIES AND THEIR REVENUES, IF YOU'D LIKE.
AND THAT KIND OF GIVES YOU A BETTER PICTURE OF WHAT CITIES HAVE ADOPTED DURING, UH, WHAT CITIES HAVE ADOPTED MODERN TAX MODELS THAT MIGHT BE MORE COMPARABLE.
LIKE, YOU KNOW, CARLSBAD GENERATES ABOUT SIX AND A HALF MILLION DOLLARS.
SO MAYBE IF WE WERE TO SEE THOSE HYPOTHETICALS, IT, IT MIGHT BE MORE COMPARABLE.
BUT MANY CITIES IN SAN DIEGO HAVE OUTDATED BUSINESS LICENSE TAX MODELS.
SO THIS IS JUST A LITTLE BIT AHEAD OF ITS TIME FOR SOUTH COUNTY CHAIR.
GOING BACK TO THAT DETAILED COMPARISON ANALYSIS ON THIS DENTAL OFFICE, IT SAYS THERE ARE OTHER UNITS FIVE PROFS THAT FIVE PROFESSIONAL USING THAT EXAMPLE.
SO ESSENTIALLY THE, AND THEN, AND THEN FOR NATIONAL CITY, WE'RE USING OUR, UM, OUR, UM, THE WAY WE COLLECT THEIR FEES FOR CHULA VISTA.
IT'S PER EMPLOYEE YOU SAID, AND THEN FOR OCEANSIDE AND VISTA IT SAYS GROSS RECEIPTS, WHATEVER GROSS RECEIPTS THEY'RE, THEY'RE USING.
SO THIS IS NOT COMPARABLE, RIGHT? THIS, BECAUSE IF YOU'RE SAYING, I, I JUST TARGETED THIS BECAUSE THIS IS WHERE, THIS IS WHERE I FOCUS THAT EXPLANATION.
SO IF YOU'RE SAYING THAT WE ARE, THERE'S 10 EMPLOYEES, BUT WE'RE ONLY USING FIVE PROFESSIONALS AS, FOR EXAMPLE, AND OUR FEE IS 9 38 FLAT AND CHULA VISTA'S USING PER EMPLOYEE, UM, YOU KNOW, I MEAN, UH, 1,050 WITH WHAT? FIVE PROFESSIONAL 1,050 DIVIDED BY FIVE, IT'S NOT A HUNDRED DOLLARS.
IT'S ABOUT 200 SOMETHING DOLLARS, 210.
AND THEN FOR GROSS RECEIPTS, WHAT ARE THE ELEMENTS THAT THEY USE HERE? WHAT IS THEIR GROSS RECEIPTS? SO THIS ITEM IS REALLY NOT A COMPARABLE.
SO IF, IF I CAN, UM, I COMPLETELY AGREE THIS, I MEAN, IF WE CAN TOSS THIS SLIDE AND RESTART, YOU KNOW, BECAUSE IT'S CAUSING SO MUCH CONFUSION.
BEFORE WE DO THAT, CAN HDL EXPLAIN WHAT WAS YOUR INTENT? WHAT WAS THE INFORMATION YOU WERE HOPING THAT WE WOULD GET FROM THIS SLIDE? JUST TO GIVE YOU A COMPARATIVE ANALYSIS OF THE EXISTING, UM, REVENUE FROM EACH OF THE CATEGORIES FROM THE, UM, THE, YOU KNOW, VARIOUS CITIES.
SO, BUT, BUT IF IT ISN'T APPLES TO APPLES, WELL, IT'S, OR AT LEAST IT'S TOO CONFUSING FOR US
[00:40:01]
TO GET TO THE APPLES TO APPLES.I CAN UNDERSTAND THAT IT'S A LITTLE BIT CONFUSING, BUT WHAT WE'RE TRYING TO, TO DEMONSTRATE IS IN A, IN A CURRENT MODEL, HERE'S WHAT THE, THE REVENUE IS BASED UPON WHAT YOUR CURRENT, UM, YOU KNOW, BUSINESS LICENSE IS, WHAT CHULA VISTA'S BUSINESS LICENSE IS PER EMPLOYEE, AND THEN THE GROSS RECEIPTS FOR OCEANSIDE AND FOR VISTA.
SO IT'S JUST TRYING TO SHOW YOU WHAT THE, THE CURRENT CONDITIONS ARE FOR THOSE REVENUES.
WELL, IT STILL DOESN'T MAKE SENSE TO ME, BUT, OKAY.
UM, CAN WE GO TO THE SLIDE ON, UH, OPTION NUMBER THREE OR SCENARIO NUMBER THREE? YEAH.
SO, SO WALK US THROUGH SOME OF THE, UM, UH, WHY CHARGE A DIFFERENT PERCENT PER BUSINESS TYPE? UM, WHAT'S THE RATIONALE BEHIND THAT? YOU WANNA TAKE THAT? YEAH.
SO AS FAR AS THE, THE DIFFERENTIATION BETWEEN THE BUSINESS TYPES, CORRECT.
ARE YOU TALKING ABOUT THIS SLED COUNCIL MEMBER? YEAH.
SO THE RATIONALE WOULD BE THAT, UM, YOU'RE, YOU'RE LOOKING AT, UH, A MODEL THAT WOULD ACTUALLY, UM, PROVIDE A VARIABLE RATE FOR THE DIFFERENT TYPES OF BUSINESSES SO THAT YOU WOULD ACTUALLY, UM, YOU KNOW, GENERATE DIFFERENT, UM, REVENUES FOR DIFFERENT BUSINESSES.
UM, AGAIN, THIS IS JUST ONE MODEL.
YOU CAN, YOU CAN CHANGE THIS IF YOU WANT, BUT IT ACTUALLY, UM, TAKES A LOOK AT THE, UM, RATE PER THOUSAND OF, UM, YOU KNOW, GROSS RECEIPTS FOR THE DIFFERENT MODELS, IF THAT MAKES SENSE.
SO, SO WHAT YOU'RE SAYING IS, AND CORRECT ME IF I'M WRONG, THIS IS OBVIOUSLY A PROPOSAL, IT COULD BE CHANGED AND MODIFIED, RIGHT? EVERY CITY DOES IT A LITTLE BIT DIFFERENT, RIGHT.
BUT THIS IS, UM, IS THIS KIND OF STANDARD YES.
OR IS THIS KIND OF THE AVERAGE OR MEAN THAT OTHER CITIES THAT GO WITH A MODEL LIKE THIS UTILIZE? YES, IT'S, IT'S KIND OF LIKE THE MODEL THAT WE RECOMMEND FOR CITIES THAT ARE MOVING INTO A GROSS RECEIPTS MODEL.
SO IT, IT'S BASED UPON THE DIFFERENT CATEGORIES OF BUSINESSES, UM, AND THE AMOUNT OF MONEY THAT THEY GENERATE.
SO IT'S, IT'S KIND OF A STANDARDIZED MODEL, IF YOU WOULD.
AND CAN WE GO TO THE SLIDE WHERE IT COMPARES CITIES AND, UM, I, I KNOW THERE'S ONE OF 'EM, UH, THAT MENTIONED CARLSBAD IN PARTICULAR THAT WENT THROUGH A GROSS RECEIPT MODEL.
IF WE COULD MODEL, COULD YOU STAY WITH THAT ONE, JUST BECAUSE I JUST GOT ONE QUICK CLARIFICATION, JUST SO WE OKAY.
SO WHEN YOU'RE SAYING RATES PER THOUSAND, LIKE A CONTRACT, I'LL TAKE IT.
THE IS BASICALLY, AS I UNDERSTAND THAT WOULD BE SAYING 0.2%.
SO IT'S NOT A ONE, IT'S NOT 2%, IT'S 0.2% CORRECT.
AND THAT EACH, EACH ONE OF THOSE WOULD BE THAT IT'D ALMOST BE GOOD IF YOU PUT LIKE A PERCENTAGE BESIDE IT, I THINK WOULD BE A LOT MORE EXPLANATORY, UH, BESIDE THE, THE DOLLAR AMOUNT.
I JUST WANNA MAKE SURE I WAS THINKING RIGHT.
SO WHAT DID CARLSBAD DO A LITTLE DIFFERENT, UM, IN THEIR GROSS RECEIPTS MODEL? I KNOW WE DISCUSSED THIS AT, DURING OUR BRIEF, UM, AND YEAH.
SO FROM 1895 AFTER OUR BRIEFING COUNCIL MEMBER, I REACHED OUT TO HDL TO GET A LITTLE BIT MORE INFORMATION, AND IT'S ACTUALLY IN THE APPENDICES OF THIS PRESENTATION ON THAT DATA.
BUT CARLSBAD HAS A, UH, 50 CENTS PER $1,000 RATE.
AND THAT WAS ESTABLISHED BACK IN 1995.
SO THEY'VE HAD THIS FOR QUITE SOME TIME NOW.
WHAT WERE, WHAT, WHAT, WHAT DO THEY DO WITH THE ADDITIONAL REVENUE THAT WAS GENERATED THROUGH, UM, THROUGH, THROUGH, UH, GROSS RECEIPTS? UH, WELL, THE GROSS RECEIPTS TAX MODEL HAS TO BE GENERAL FUND.
OR ELSE IT BECOMES A SPECIAL TAX.
AND SPECIAL TAXES REQUIRE DIFFERENT, UH, VOTER TWO TWO THIRDS THRESHOLD.
AND GRANTED, UM, WE ARE A VERY DIFFERENT MODEL THAN CARLSBAD AND, UH, DIFFERENT SIZES AND, UM, DIFFERENT COMPARISONS.
BUT, UH, I MEAN, WHEN, WHEN WE DISCUSSED THIS AND I LOOKED INTO WHEN, UM, UH, UH, CURRENT BUDGET AND HOW IT HAS BEEN OPERATING OVER THE LAST DECADE, THEY'RE VERY HEALTHY IN A LOT OF WAYS.
AND THEY'VE INCENTIVIZED, UH, ADDITIONAL BUSINESSES TO COME TO THEIR CITY.
[00:45:01]
SO IT IS A PART OF A REDEVELOPMENT STRATEGY TO MAKE SURE THAT THOSE BIGGER BUSINESSES PAY THEIR FAIR SHARE.AND SO, UM, SO I I, I DEFINITELY APPRECIATED THAT EXAMPLE.
I DIDN'T KNOW THEIRS WAS THAT HIGH.
SO THANK YOU FOR THE CLARIFICATION.
AND JUST A LITTLE, JUST TO POINT OUT THE NUANCES TO YOUR COMMENTS, COUNCIL MEMBER CARLSBAD CAN BE VERY COMPARABLE 'CAUSE THEY ALSO HAVE A VERY SUCCESSFUL AUTO MALL AS WELL, AND THEY HAVE SEEN BRANDS GROW THERE OVER THE PAST DECADES.
MOST NOTABLY, WE ALL SEE THE PORSCHE DEALERSHIP WITH ALL THOSE BEAUTIFUL PORSCHE THAT WE ALL WANT AND, UH, HAVE NOT DETERRED ANY TYPE OF BUSINESS.
IF ANYTHING, CARLSBAD HAS SEEN A BOOM IN THE PAST DECADE OR TWO.
ON THE SAME, UM, A SLIDE, IT SAYS HERE, UNDER TAX BASIS, UH, FOR NATIONAL CITY, WE HAVE GROSS RECEIPTS SLASH FLAT FEE, AND THEN WE HAVE A CAP PRESENCE.
ARE YOU ASKING TO CLARIFY THE GROSS RECEIPTS? FLAT FEE? UH, ARE WE USING THAT NOW? BECAUSE IT SAYS HERE WE'RE, MY UNDERSTANDING HERE IS GROSS, GROSS RECEIPTS SLASH FLAT FEE.
WE'RE USING IT NOW, AND THEN IT SAYS WE HAVE A CAP.
YEAH, SO THE GROSS RECEIPTS, FLAT FEE, UM, IT IS A LITTLE CONFUSING, UH, AT, AT THE BEGINNING, BUT THE THING IS THAT THE CITY CURRENTLY USES GROSS RECEIPTS TO CATEGORIZE BUSINESSES.
SO ESSENTIALLY WE CATEGORIZE PEOPLE BASED OFF OF THEIR GROSS RECEIPTS AND THEN APPLY A FLAT FEE DEPENDING ON WHERE THEY LAND BASED OFF OF THEIR GROSS RECEIPTS TIERING.
AND WHO, WHO MAKES THE CAP? WHAT, WHAT'S THE CAP? WHAT, WHAT CAP ARE WE USING? UH, RACHEL, DO YOU HAPPEN TO KNOW THAT CAP? YEAH, IT'S A CAP BASED UPON CATEGORY.
SO THERE IS A, THERE IS A MAXIMUM THAT YOU'RE, UH, CERTAIN BUSINESSES HAVE, SO IF THEY REACH THAT CAP, THEY DON'T PAY ANYTHING ABOVE THAT.
AND SO THAT'S WHY IT'S INEQUITABLE, RIGHT? BECAUSE THEY'RE NOT PAYING THEIR FAIR SHARE BECAUSE THEY'RE CAPPED AT A CERTAIN POINT.
AND THAT'S BASED UPON, UM, BUSINESS CATEGORIES.
AND IF WE CHANGE THOSE CAPS, WE'D HAVE TO GO BACK TO THE VOTERS, WOULDN'T WE? EXACTLY.
AND THAT, THAT PLAYS INTO THE SLIDE THAT, UH, THE MAYOR ASKED, UH, SOME CLARIFYING QUESTIONS, WHICH IS THE TOP 100 BUSINESSES OF THE CITY THAT GENERATE GROSS RECEIPTS GENERATES 59% OF THE C CITY'S GROSS RECEIPTS, BUT ONLY PAY IN 29% TO THE REVENUE BECAUSE OF THE CAP.
BECAUSE OF THE CAP, BECAUSE THEY REACH THAT CAP.
IS THERE, THERE AND THERE? DO WE HAVE THAT? WHY WOULD, CAN WE GET THAT? LIKE BASED ON CATEGORY BY BUSINESS TYPE, THE CAP AND WHOSE, WHOSE GROSS RECEIPT AND WHAT FLAT RATE WE ARE USING? I THINK THAT WOULD ALSO CLARIFY THIS CHART, YOU KNOW, THIS CHART, UH, TOTAL SHARE OF TAX REVENUE.
OUR DIRECTOR OF FINANCE IS TRYING TO FIND THAT IN OUR OKAY.
UM, AS WELL AS, UM, YOU KNOW, I MEAN IN 2017 THIS WAS DONE, YOU KNOW, I MEAN IT SAYS WE, WE, ACCORDING TO THIS CHART, WE ARE, WE ARE THE MOST CURRENT IN, IN THE STUDY OF, UM, YOU KNOW, I MEAN CHANGING THIS GROSS, THIS THIS BUSINESS TAX LICENSES.
SO IS THERE, UM, I I I LIKE TO SEE THE ORDINANCE THAT PASSED IN 2017.
SO THEN MAYBE BECAUSE OF THAT GROSS RECEIPTS, LAST FLAT FEE, MAYBE THERE IS, THERE IS SOME LEEWAY THERE THAT WE CAN, WE CAN SEE YOU'RE LOOKING AT, UM, TRYING TO BALANCE THE BUSINESS LICENSES.
THERE IS A MOST RECENT YAMEN ORDINANCE THAT PASSED IN 2017.
UM, IS THAT SOMETHING THAT YA, I WISH I PULLED THAT SO THEN I, I COULD, UM, UNDERSTAND IT BETTER, BUT I THINK THAT'S A QUESTION FOR ME.
WHAT, UM, LEEWAY DO WE HAVE IN THAT ORDINANCE THAT, UM, WE CAN MAKE, UM, WE CAN MAKE, UM, LIKE SLIGHT REVISIONS ON OUR BUSINESS LICENSES NOW IN, IN, IN, UH, INSTEAD OF LATER? BECAUSE RIGHT NOW IS SOMETHING THAT WE NEED TO MAKE THIS ADJUSTMENT.
A POSSIBLE VARIABLE MIGHT BE WE'RE JUST PROP TWO 18 FALL IN ON THIS AS FAR AS RAISING TAXES AND WHAT WE WERE ALLOWED TO DO THEN.
AND WHAT WE DO NOW, IF WE DO A RAISE,
[00:50:01]
WE CHANGE THEM, THEN WE, WE KICK IN PROP TWO 18, WHICH MEANS WE HAVE TO GO TO THE, WE HAVE TO GO TO THE VOTERS.IT'S ACTUALLY NOT A, A PROP TWO 18 ISSUE.
IT'S, IT'S A BALLOT MEASURE ISSUE, RIGHT? YEAH.
SO YOU WOULD ACTUALLY HAVE TO, ANY CHANGE THAT YOU WOULD HAVE TO MAKE TO YOUR BUSINESS LICENSE, WHETHER IT'S THE MODEL YEAH.
WHETHER IT'S A CHANGE OR ADJUSTMENT YEAH.
WOULD BE A BALLOT MEASURE AND NOT A TWO 18 MEASURE.
A NOTIFICATION, RIGHT? THAT'S YEAH.
THAT'S, THAT'S A FEE STRUCTURE MEASURE.
BUT YEAH, I, I, I THINK, I THINK THAT DEAL ABOUT ANY TAXES, I, I DON'T KNOW WHAT YEAR THAT PASSED, BUT THAT ANY TAXES WE HAD TO GO BACK TO THE VOTERS EXACTLY.
THAT CAP IS SOMETHING THAT I WOULD LIKE TO SEE, RIGHT.
BECAUSE MAYBE THAT'S SOME, YOU KNOW, I MEAN, LEEWAY THAT WE HAVE IN ORDER FOR US TO, IT WOULD BE, IT WOULD BE GOOD TO SEE THE TIERS HIMSELF.
AND CAN I ASK, BECAUSE IF YOU'RE AT THE BOTTOM OF THE TIER, YOU'RE DOING VERY WELL.
IF YOU'RE AT THE TOP OF, UH, UM, WELL YOU'RE, YOU'RE GETTING CHARGED THE SAME AMOUNT OF AS THE, THE TOP OF THE TIER TOP.
YOU'RE AT THE TOP OF THE TIER, YOU'RE CAPPED AND ANYTHING ABOVE THAT YOU'RE, IS, IS GRAVY FOR YOU.
OH, I WANNA FOLLOW UP REAL QUICK ON THIS TO MS. YAMANI, UH, MEMBER YAMANI.
I WONDER IF, IF, IF WHAT YOU'RE ASKING FOR IS, IS THERE SOMETHING THAT CAN BE DONE UTILIZING OUR CURRENT STRUCTURE IN, WITHIN OUR CURRENT STRUCTURE, WHAT CAN WE CHANGE WITHIN OUR CURRENT STRUCTURE? UM, AND I WONDER IF IT'S BECAUSE YOU WOULD PREFER TO DO THAT VERSUS IMPLEMENT SOMETHING BRAND NEW THAT WOULD REQUIRE VOTER APPROVAL.
IS THAT THE LINE OF QUESTIONING COMING FROM THAT? THANK YOU, THANK YOU COUNCIL MEMBER.
BECAUSE I'M LOOKING AT WHEN THESE ADJUSTMENTS WERE MADE AND WHERE THE MOST CURRENT 2017 AT THIS TIME,
I WOULD REALLY LOOK AT OUR CURRENT ORDINANCE AND, AND LOOK AT HOW CAN WE WIGGLE THAT AND SEE HOW WE CAN MAKE CHANGES TO BALANCE SOMETHING.
UM, AND AND INSTEAD OF, YOU MEAN DID WE SEE THAT, DID WE SEE YOU MEAN I WOULD LIKE TO SEE THIS IS OUR CURRENT ORDINANCE, THIS IS OUR RECOMMENDATION FROM THE STUDY.
THAT SHOULD HAVE BEEN, THIS IS OUR ORDINANCE.
IF YOU'RE EDUCATING ME, THIS IS THE CURRENT ORDINANCE, THIS IS WHAT WE, THE FEASIBILITY STUDY, THAT WOULD MEAN MORE TO ME.
AND, AND, AND, AND, AND THEN THE OTHER THING TYING IN WITH THAT, HOW DOES ANY TAX INITIATIVE THAT HAS PASSED, HOW DOES IT AFFECT THAT ANY, THE ABILITY TO MAKE CHANGES.
UM, I THINK MARCUS, YOU SO, SO JUST TO, UM, FOLLOW UP, I'LL, I'LL START FOLLOWING UP WITH, UM, WITH COUNCIL MEMBER AMMANI'S POINT, MY UNDERSTANDING IS THAT THERE IS NO WIGGLE ROOM, AT LEAST IN TERMS OF GETTING MORE REVENUE.
IS THAT CORRECT? BECAUSE ANY ADJUSTMENT, ANY EXACTLY.
WITHOUT HAVING TO GO TO THE VOTERS.
IS THAT ACCURATE? AND FEEL FREE CITY ATTORNEY TO WAIT, WAIT, WEIGH IN.
COULD YOU PUT YOUR MIC ON THOUGH? PLEASE ALWAYS HAVE TO BE REMINDED OF THAT.
SO COUNCIL MEMBER, I THINK, UM, WHILE I WOULDN'T GIVE SPECIFICS ON ANYTHING HERE, THERE ARE SEVERAL LEGAL QUESTIONS THAT ARE ASKED AND THAT THEY INCLUDE IF THERE'S AN EXPANSION OF A TAX BASE, IF YOU ARE INCREASING REVENUE, IF THE MODEL YOU CHOOSE IS INCREASING REVENUE, UM, OR IF THERE ARE SOME OTHER CHANGES, YOU WILL HAVE TO GO BACK MM-HMM
SO FOR EXAMPLE, IN COUNCIL MEMBER, UM, YANIS SCENARIO, IF YOU AREN'T REALLY INCREASING THE REVENUE, IT WOULDN'T HAVE TO GO BACK TO THE VOTERS.
BUT IF THE IDEA IS TO INCREASE REVENUE IN ANY WAY, YOU'RE LIKELY LEANING OVER NO MATTER WHAT.
LIKE ANY, AND IT COULD BE DONE, WOULD IT WITHSTAND A LEGAL CHALLENGE? POTENTIALLY NOT DEPENDING UPON WHAT WE DO.
SO WE HAVE TO LOOK AT A, A GROUP OF FACTORS AND HAPPY TO BRIEF ON ALL OF THOSE FACTORS TO DISCUSS WHAT NEEDS TO HAPPEN.
UM, THAT WOULD NOT BE CONSIDERED, QUOTE, A TAX THAT WOULD GO BACK TO THE VOTERS FOR APPROVAL.
I THINK IT WOULD BE DIFFICULT THOUGH, UH, TO DO THAT.
IF THE GOAL IS THE REVENUE INCREASE, YOU'RE GONNA END UP BACK WITH THE VOTERS.
I I THINK YOU CLARIFIED THAT AND I THINK I UNDERSTAND, UH, COUNCIL MEMBER YA'S POINT, JUST SEEING LIKE, HAVE WE EXHAUST, BASICALLY YOU'RE SAYING COUNCIL MEMBER YAMANI, HAVE WE EXHAUSTED ALL OPTIONS WITHIN OUR EXISTING FRAMEWORK? CORRECT.
SO I FEEL SATISFIED ABOUT THAT IN THE STAFF AND HDL ANSWERED THAT, SO I I, I APPRECIATE THAT, BUT I THINK IT'S GOOD TO LOOK AT YEAH.
BE, ESPECIALLY IF WE'RE GONNA, YOU KNOW, TALK ABOUT INCREASING FEES.
UM, MY COMMENT ON, UM, I I, YOU DON'T NEED TO GO TO IT, BUT IT'S THE SLIDE, THE DETAILED COMPARISON AND, UH, COMPARISON ANALYSIS SLIDE.
I, IT'S 49 OF, UM, 68 ON OURS.
UM, BUT IT'S THE BUSINESS SCENARIO.
[00:55:01]
SO IT'S THE SLIDE THAT, UM, RECEIVES SOME CRITICISM FROM MY COLLEAGUES.AND I JUST WANT TO MAKE SURE THAT I'M CLEAR FOR ME.
UM, SO IS THE CHULA VISTA COLUMN, UH, IS THAT A, UM, IS THAT A COMPARABLE, LIKE A FAIR COMPARISON? AND IF IT'S NOT, I'M OKAY WITH THAT.
I WOULD JUST ASK, YOU KNOW, THAT YOU GUYS UPDATE THOSE NUMBERS SO THAT IT'S COMPARABLE.
SO, BECAUSE ONE OF THE THINGS I WOULD JUST TELL MY, MY COLLEAGUES, LIKE THEY, THEY'RE PROVIDING, I MEAN, YOU GUYS ARE CRITICIZING, THAT'S FINE, BUT THEY'RE PROVIDING SOMETHING.
SO, AND IF YOU GUYS DON'T LIKE IT, THEN TELL THEM WHAT WE WANT TO PROVIDE.
BUT I WOULDN'T HANG, FOR ME, I'M NOT HANGING MY DECISION, UM, A THOUSAND PERCENT ON WHAT OTHER CITIES ARE DOING.
I WANNA SEE WHAT THE BALANCE IS AND I WANT TO SEE LIKE, 'CAUSE WE COULD DO CRE, WE COULD BE CREATIVE, WE CAN LOOK AT DIFFERENT OPTIONS.
BUT I THINK, I THINK WHAT YOU GUYS ARE TRYING TO GET AT IS, AND THE ONE THING THAT I WOULD ASK HDL TO, BECAUSE I AM A SUPPORTIVE OPTION, UH, UH, THREE.
UM, AND I, AND I DO WANNA MOVE FORWARD WITH THIS GIVEN EVERYTHING I I'VE SEEN, BUT I DO THINK THERE'S SOME GOOD NUANCES, UM, AND SOME QUESTIONS THAT FLUSH OUT.
AND ONE OF THE QUESTIONS IS, WHAT WOULD THE IMPACT BE IF OUR FEE IS SIGNIFICANT, OUR BUSINESS LICENSE FEE ENDS UP BEING SIGNIFICANTLY HIGHER COMPARED TO THE NEIGHBORING CITIES, AND WHAT WOULD THE IMPACT WOULD BE? SO FOR EXAMPLE, IF THERE IS, UM, BOB'S FURNITURE IN NATIONAL CITY AND THERE'S BOB FURNITURE IN CHULA VISTA, LIKE, WILL OUR BOB'S FURNITURE CLOSE OR WILL IT BE IMPACTED BECAUSE OURS IS COMPAR HIGHER? HIGHER? SO THAT'S KIND OF A QUESTION THAT I WOULD BE INTERESTED IF HDL IF OUR STUDIES WOULD BE ABLE TO GIVE US SOME SORT OF ANSWER.
MAYBE NOT ON THAT GRANULAR LEVEL, BUT AT LEAST IN TERMS OF LIKE THE CATEGORIES, WHAT IS THE RISK OF BUSINESS LOSS, BUSINESS LEAKAGE? I FORGOT WHAT THE ECONOMIC TERM IS.
NO, AND ACTUALLY, YOU KNOW, SO THE, UH, THIS CHART IS JUST AN ACTUAL, YOU KNOW, CURRENT CONDITIONS ANALYSIS, UM, NOW AS FAR AS BUSINESS, BUT, BUT IS IT AC IT'S ACCURATE THOUGH, 'CAUSE I, I, WELL OR DOES IT NEED TO BE TWEAKED OR UPDATED AS SOME OF THE NUMBERS? YEP.
I'LL HAVE, YOU KNOW, I DID NOT PREPARE THIS, SO I'LL HAVE TO ACTUALLY CHECK THAT.
BUT AS FAR AS BUSINESS LEAKAGE, UM, YOU KNOW, THAT'S A WHOLE DIFFERENT STUDY.
YOU KNOW, MY DEPARTMENT THAT I WORK FOR, WE DO VOID ANALYSIS WHERE WE LOOK AT LEAKAGE, UM, AND COMPARED, YOU KNOW, CERTAIN BUSINESSES FROM OTHER, UM, BUSINESSES.
SO, YOU KNOW, WE, IF YOU WANT US, WE CAN, YOU KNOW, WE CAN DO SOME OF THAT KIND OF ANALYSIS TOO.
IF YOU'RE LOOKING AT SPECIFIC BUSINESSES, I, FROM MY EXPERIENCE, BUSINESS LICENSE, UM, COSTS ARE NOT REALLY THE THING TO MOVE A BUSINESS ONE YEAH.
SO I'M NOT GONNA MOVE MY BUSINESS TO A CITY NEXT DOOR BECAUSE MY BUSINESS LICENSE IS CHEAPER, UH, IN ONE CITY TO THE NEXT.
UM, YOU KNOW, THERE, THERE ARE SO MANY DIFFERENT, UM, FACTORS AND ANALYSIS THAT GO INTO WHERE YOU WANT TO LOCATE YOUR BUSINESS TO.
AND IF YOU'RE GONNA PAY A COUPLE THOUSAND DOLLARS MORE IN A BUSINESS LICENSE, THAT'S NOT A FACTOR TO MOVE YOUR BUSINESS.
SO, UM, BUT WE CAN, YOU KNOW, WE CAN LOOK AT THAT, BUT I THINK THAT'S PROBABLY WHEN YOU GET INTO, LIKE YOU SAID, THE GRANULAR LEVEL, THAT'S, THAT'S REALLY NOT THE DRIVING FORCE.
AND I THINK IN GENERAL, YOU'RE RIGHT, BUT EVEN IF THERE'S A SURVEY, I, I, SO I DON'T KNOW THAT I WOULD BE READY TO SPEND A BUNCH OF MONEY ON THAT KIND OF STUDY FOR THAT, BUT I, BUT I, I THINK IN GENERAL, YOU'RE RIGHT, BUT I JUST DON'T, DON'T KNOW.
SO I'D BE, BE INTERESTED IN THAT.
I, SO I THINK THAT'S, THAT'S GOOD.
I'M, I'M SATISFIED WITH THAT ANSWER.
AND THEN ANOTHER QUESTION I HAD, AND ACTUALLY IT WAS A COMMUNITY MEMBER THAT ASKED ME THIS, UM, UH, HOW WOULD WE KNOW THAT A, UM, HOW DO, HOW ARE THE BUSINESSES PROVIDING US THESE RECEIPTS? LIKE HOW, HOW DO WE, HOW ARE WE GETTING THIS INFORMATION? IS THAT, IS IT UPON RENEWAL OF YOUR LICENSE EVERY YEAR? OR HOW, HOW ARE WE COLLECTING THIS DATA AND HOW ARE WE ENSURING THE, THE ACCOUNTABILITY OF IT? THAT IT'S, THAT IT'S HONEST THAT, THAT BUSINESSES ARE, ARE REPORTING WHAT THEY NEED TO BE? UM, I CAN RESPOND TO THAT.
I WAS JUST GONNA SAY, SORRY, GO AHEAD.
UH, RACHEL RERO, FINANCE DIRECTOR OF, UM, UM, WE CAN ALLUDE TO THE GROSS RECEIPTS TAX TABLE.
WE PROVIDE THAT INFORMATION TO HDL.
SO WHEN THE BUSINESSES APPLY AND THEY RENEW, THEY HAVE TO PROVIDE HOW MUCH THEIR RECEIPTS WOULD BE IN A YEAR.
AND THAT WOULD PROVIDE THEM THE INFORMATION IN WHERE THEY ALL IN EACH CATEGORY FOR THE TABLE.
AND I WOULD TAKE IT THAT HAS TO BE IN LINE WITH THEIR FILINGS WITH THE FEDERAL GOVERNMENT OR WHATEVER ELSE THAT IS CORRECT.
WELL, IT HAS TO BE, BUT THERE'S NO VERIFICATION,
[01:00:02]
RIGHT.SO THEY DO HAVE A COMPLIANCE DEPARTMENT THAT WE, UM, ACTUALLY COORDINATE WITH HDL.
SO THEY WILL GO OUT THERE AND DO THOSE STUDIES WITH THOSE BUSINESSES TO VALIDATE THE GROSS RECEIPT REPORTINGS.
UM, YEAH, I THINK THAT'S FOR NOW ALL MY QUESTIONS.
IT, IT IS, UM, COMPLEX AND IT, IT IS, UM, I I ACTUALLY THINK IT'S DECENT.
I WOULD JUST ASK YOU GUYS TO KIND OF TWEAK SOME OF THIS AND IF THERE'S WAYS TO SIMPLIFY IT.
BUT OVERALL, UM, I, I, I THINK IT'S GOOD.
AND I, UH, AND MAYBE SOME OF THE OTHER VISUALIZATIONS, LIKE EARLIER I WAS REALLY CONFUSED EARLIER ON THAT 59% OF THE BUSINESS, HIGHEST TOP 100, ONLY PAY 29% OF THE REVENUE.
SO SOME OF THAT IS JUST MM-HMM
IF THAT COULD BE MAYBE VISUALLY LIKE, LIKE FLUSHED OUT A LITTLE MORE.
BUT OVERALL, I THINK IT WAS A GREAT DATA AND GREAT PRESENTATION.
PROBABLY TOO MUCH INFORMATION.
BUT I MEAN, THEN WE WOULD BE COMPLAINING ABOUT NOT ENOUGH INFORMATION.
SO
AND THEN YOU COME UP NEXT, JUST REAL QUICK, UM, UH, RACHEL WAS ABLE TO FIND THE, UH, CAPS THAT COUNCIL MEMBER YAMANI WASN'T LOOKING FOR.
SO I DON'T KNOW IF WE NEEDED TO ANSWER THAT STILL, IF WE WANTED TO PUT THAT ON THE RECORD OR I, I GOT IT.
I'M GONNA PULL IT LATER FOR THE RECORDS.
I JUST WANTED TO MAKE SURE YOU HAD YOUR, IF IF WE COULD SEND THAT INFORMATION OUT TO ALL THE COUNCIL MEMBERS, UH, THAT WOULD BE HELPFUL.
WHAT, WHAT, I'M SORRY SHE WAS NEXT THEN.
UM, UH, DURING MY BRIEFINGS, UM, SOMETHING VERY, UM, HELPFUL WAS, WAS PRESENTED TO ME AND, AND I, I DON'T THINK HDL WAS A PART OF THAT DISCUSSION, AND I, IT WAS, UM, YOU KNOW, WHEN, WHEN PEDRO WAS HELPING ME UNDERSTAND THIS ENTIRE THING, AND I, AND I WANNA MAKE SURE THAT THAT GETS NOTED TODAY.
SO, UM, THE BUSINESSES THAT ARE ALREADY, UH, IMPACTED BY OTHER FEES, SPECIAL FEES, OTHER TAXES, FOR EXAMPLE, IN THE SALE OF CARS, RIGHT? UH, A BUSINESS THAT SELLS CARS, FOR EXAMPLE, OUR BUSINESSES ON MALA CAR'S WAY ALREADY HAVE OTHER FEES THAT THEY NEED TO PAY.
AND I WANNA BE CAUTIOUS TO NOT OVERBURDEN THOSE BUSINESSES.
CANNABIS IS ANOTHER EXAMPLE, UM, WHERE THERE'S ALL OF THESE OTHER FEES THAT THOSE TYPES OF BUSINESSES HAVE TO PAY OR, YOU KNOW, YEAH.
B FEES WHERE, UM, ANOTHER CATEGORY, FOR EXAMPLE, A, UH, APARTMENT COMPLEX, THEY DON'T HAVE TO PAY BECAUSE THEY'RE NOT MANDATED TO PAY IT PER STATE OF CALIFORNIA OR WHATEVER.
I WANNA MAKE SURE THAT THAT STATEMENT IS SAID HERE, PEDRO, YOU HELPED ME UNDERSTAND, FOR EXAMPLE, UM, HOW WE CAN HAVE THAT EQUALITY THAT, THAT EQUITY ACROSS BUSINESSES THAT ARE ALREADY PAYING QUITE A FEW OTHER TAXES AND FEES AND THINGS LIKE THAT VERSUS A BUSINESS THAT ISN'T IMPACTED BY THOSE AND HOW WE PLAN TO BALANCE IT.
CAN YOU, DO YOU UNDERSTAND WHAT I'M ASKING? YEAH.
ARE WE TALKING ABOUT THE EQUITABILITY ON THE RAIDS? YES.
SO, UM, AND STOP ME AT ANY MOMENT IF I'M KIND OF NOT EXPLAINING WHAT YOU WANT, BUT, UM, AND IT'LL BE HELPFUL IF YOU SHOW THE SLIDE THAT SHOWS THE ONE PER THOUSAND, $2 PER THOUSAND.
SO FOR INSTANCE, UM, WE SPOKE A LITTLE BIT ABOUT THE BREAKDOWN FOR THE, FOR THE VARIABLE RATES, SIMILAR TO THE QUESTION THAT COUNCIL MEMBER RODRIGUEZ HAD.
AND AN IMPORTANT FACTOR TO NOTE IS, SO YOU BROUGHT UP DEALERSHIPS, UM, THEIR FEE IS REALLY NOT A FEE.
THEY HAVE A SALES TAX THAT'S A PASS THROUGH TO THE CUSTOMER, UH, SIMILAR TO CANNABIS.
THEIR, THEIR COST OR THEIR FEE IS ALSO YET AGAIN, A PASS THROUGH TO THE, TO THE CUSTOMER.
AND THEY ACTUALLY ITEMIZE IT IN THEIR RECEIPTS.
THEY'LL, YOU KNOW, FOR INSTANCE, CANNABIS, THEY'LL ITEMIZE THE STATE EXCISE TAX, THEY'LL ITEMIZE ANOTHER TAX AND THEN THEY'LL ITEMIZE THE LOCAL, LOCAL TAX OR ANY TYPE OF OTHER FEE.
UM, IN THIS CASE, THIS IS NOT A TRUE PASS THROUGH 'CAUSE THIS GOES TO THE ACTUAL BUSINESS AND IT'S HARD TO COMPUTE BECAUSE IT'S NOT BASED ON A PER TRANSACTION, IT'S ON THE BUSINESS GROSS RECEIPTS.
UM, AND THEN ANOTHER FACTOR THAT I BELIEVE YOU WERE HINTING TOWARDS IS, UM, IS THE RETAIL GENERAL, RIGHT? A DOLLAR.
UM, IT'S IMPORTANT TO, TO NOTE THAT ONE BECAUSE IT KEEPS BUSINESSES IN PARTICULAR SMALL MOM AND POP SHOPS AT WHAT THEY WERE CURRENTLY ESSENTIALLY PAYING.
AND I ALWAYS LIKE TO USE HALF A MILLION DOLLARS AS A, AS A GOOD GROSS RECEIPTS TO KIND OF DIFFERENTIATE A SMALL MOM, MOM AND POP BUSINESS VERSUS A BIG BUSINESS.
I'M NOT SAYING A SMALL LOCALLY BUSINESS OWNED BUSINESS CAN GENERATE,
[01:05:01]
CAN'T GENERATE MORE THAN HALF A MILLION, BUT FOR THE SAKE OF CONVERSATION, UM, IF THAT BUSINESS IS GENERATING HALF A MILLION DOLLARS, THEY MIGHT BE PAYING ROUGHLY ABOUT 500 BUCKS RIGHT NOW FOR A BUSINESS LICENSE IN OUR CURRENT CONDITION.IF WE WERE TO GO TO THE MODEL THREE, WHICH IS A SIGNIFICANT CHANGE AND A VERY LARGE INCREASE TO OUR REVENUE, KEEPING THAT GENERAL RETAIL AT $1 KEEPS THEM PAYING $500 STILL AND REALLY PUTTING MORE OF THE BURDEN ON THE 100 BUSINESSES THAT WE PREVIOUSLY DISCUSSED WHO ARE NOT PAYING THEIR FAIR SHARE.
UM, AND SO I BELIEVE THAT'S MM-HMM
THE OTHER PIECE THAT I WANTED STATED WAS, UM, WE ARE BEING EQUITABLE WITH SOME OF THE FEES, FOR EXAMPLE, THAT DEALERSHIPS ALREADY PAY BY NOT HAVING THEM UNDER THIS MODEL THREE TIER BY NOT HAVING THEM PAY $3 FOR YOU.
SO THAT IS SOME OF THE BASIS OR SOME OF THE JUSTIFICATION FOR THE FEES THAT ARE BEING PROPOSED ON THIS, UH, IN THIS SLIDE HERE.
AND, AND, YOU KNOW, WE, HDL AND THE CITY, WE LOOK AT THE, YOU KNOW, THE INDUSTRIES AND HOW MUCH THEIR GROSS RECEIPTS ARE AND HOW MUCH OF A BURDEN THEY CAN CARRY.
SO THAT'S A LITTLE BIT OF THE BEHIND THE SCENES OF THOSE, THOSE VARIABLE RATES.
AND I'M GLAD THAT YOU MENTIONED ABOUT THE PASS THROUGH COST TO THE CUSTOMER, OR IN THE CASE OF AN APARTMENT COMPLEX TO THE RENTER.
UM, BECAUSE THAT IS SOMETHING THAT I WAS VERY CONCERNED ABOUT IS, UM, YOU KNOW, WE ARE ASKING A BUSINESS TO FORK OVER MORE ANNUALLY FOR THEIR BUSINESS LICENSE.
I WAS AFRAID IN THE CASE OF AN APARTMENT COMPLEX, FOR EXAMPLE, THAT THE, UM, YOU KNOW, THE, THE BUSINESS WOULD JUST CHARGE THE RENTER THAT FEE.
AND, AND THE WAY YOU DESCRIBED IT TO ME WAS HELPFUL.
SO, UM, THAT OBVIOUSLY STANDS OUT LARGELY IN THIS PROPERTY RENTAL AT $3 PER 1000.
UM, A BIG FACTOR, JUST TO NOTE ON THAT ONE, IS THAT WE HAVE OVER 2000 PROPERTY RENTAL BUSINESSES ESSENTIALLY IN THIS CITY, WHICH IS A VERY SIGNIFICANT NUMBER, BUT THAT'S WHY YOU ALSO SEE A LARGE JUMP IN THE REVENUES THERE.
UM, BUT JUST TO GO BACK TO WHAT YOU WERE SAYING, SO LET'S JUST SAY THE TYPICAL RENT IN NATIONAL CITY RIGHT NOW IS $2,000 FOR WHATEVER SIZE, UM, AT THIS RATE, IF, IF THE PROPERTY OWNER WERE TO TRY TO PASS THROUGH IT, AND THAT'S A BIG IF, BECAUSE USUALLY THESE ARE ONE YEAR CONTRACTS, TWO YEAR CONTRACTS, SO IT'S NOT LIKE THEY CAN IMMEDIATELY APPLY IT.
UM, BUT LET'S JUST SAY THEY COULD, AND THAT HYPOTHETICAL, THEIR RENT WOULD GO UP $6 PER MONTH BECAUSE IT'S $3 PER 1000.
SO THAT WOULD BE $6 A MONTH, AND THAT WOULD BE $72 A YEAR ROUGHLY.
SO THEY WOULD GO IF THE RENT, IF THE, THE LANDLORD PASSED THE COST, UM, TO THE RENTER IN THE CASE THAT YOU JUST DESCRIBED, THEIR RENT WOULD INCREASE FROM 2000 TO $2,006 MONTHLY.
AND THAT WOULD BE THE IMPACT TO THE, I MEAN, THE RENT, THE, THAT'S HOW THE, TO THE PROPERTY OWNER, PROPERTY OWNER WOULD HANDLE HAVING TO PAY THIS IS CHARGE THEIR RENTERS AN EXTRA $6 MONTHLY.
AND THEN WE WOULD HAVE TO TAKE IN CONSIDERATION WHETHER IT'S, UM, FINANCIALLY OR EVEN LEGALLY POSSIBLE FOR THEM TO BREAK THE LEASE AND REEVALUATE AND REAPPLY A, A FEE LIKE THAT.
NO, I, I'M CONSIDERING IT IF IT'S DONE LEGALLY AND OKAY.
UM, I, I DO WANT TO, UM, IF YOU DON'T MIND ME ADDING ONE THING, COUNCIL MEMBER, UM, ANOTHER THING TOO TO CONSIDER IS LIKE SERVICE.
UM, WE HAVE A LOT OF SERVICE-BASED BUSINESSES IN OUR MARITIME AND THEY DON'T REALLY PAY ANYTHING BECAUSE THEY'RE A SERVICE-BASED BUSINESS, NOT A SALES TAX BUSINESS.
UM, WE ALL KNOW, I WOULD, I WOULD THINK I'VE DONE A GOOD ENOUGH JOB TO INFORM ALL YOU THAT WE'RE A SALES TAX CITY.
WE LARGELY GENERATE THE MOST REVENUE, ACTUALLY THE LARGEST REVENUE FROM OUR CITY IN SALES TAX BY A LARGE AMOUNT.
OUR PROPERTY TAXES DON'T KEEP UP.
UH, PROP 13 HELPS KEEP THAT VERY LOW.
AND WE ARE THE SECOND OLDEST CITY IN THE COUNTY.
SO A LOT OF THAT HINDERS OUR ABILITY TO LOOK AT NEW REVENUE OPTIONS.
WHEN YOU LOOK AT THE SERVICE BASED BUSINESSES AT $2, THAT ALLOWS US TO CAPTURE A LITTLE BIT MORE OF A BUSINESS IMPACT FEE FROM THOSE TYPES OF BUSINESSES WHO DON'T PAY ANYTHING REALLY INTO THE CITY IN ANY FORM.
AND SOME OF THOSE BUSINESSES ARE VERY LARGE BUSINESSES IN THE CITY THAT COULD POTENTIALLY, UH, CREATE NEGATIVE IMPACTS TO OUR ROADWAYS AND OTHER FACTORS.
I'M GLAD THAT YOU MENTIONED THAT BECAUSE YES, THAT IS A, THAT IS SOMETHING THAT I HAVE BEEN INTERESTED IN TRYING TO SOLVE THAT PROBLEM IS HOW DO WE, YOU KNOW, ASK MORE OF THESE HUGE BUSINESSES IN THE CITY OF NATIONAL CITY THAT ARE PUTTING IN SUCH A SMALL AMOUNT, YOU KNOW, TO RUN IN THE CITY.
[01:10:01]
LET ME, LET ME JUST ASK MY FINAL QUESTION.AND IT RELATES TO, UM, ON MY COMPUTER, IT'S SLIDE NINE OF 40.
IT'S, UM, THE BUSINESS LICENSE REGISTRY REVIEW, LICENSE RATES, COUNTS, AND TEXT.
UM, IT'S ACTUALLY, IT'S NOT THAT, THAT ONE, THAT ONE RIGHT THERE.
OH, I JUST WANNA MAKE SURE I UNDERSTAND.
THIS SLIDE HERE, THE VERY BOTTOM, UM, SAYS ALL OTHER, UM, AND THE AMOUNT OF THOSE BUSINESSES, ALL OTHER IS 360 3 WITHIN THE CITY OF NATIONAL CITY.
WHAT ARE THOSE? ALL OTHER BUSINESSES? UH, WELL, SO THIS, JUST TO KIND OF EXPLAIN, THIS IS WHAT WE CURRENTLY HAVE IN OUR CURRENT BUSINESS LICENSE STRUCTURE.
THIS IS HOW YOU HAVE CATEGORIZED THEM.
THIS IS WHAT THE CITY CURRENTLY DOES.
SO AS YOU CAN TELL, IT'S A VERY CONVOLUTED LIST.
UM, AND I BELIEVE THE OTHER 12, UH, RACHEL, DO YOU HAPPEN TO KNOW WHAT THOSE OTHER 12 ARE BY CHANCE? IT'S 12 INDIVIDUAL BUSINESSES.
I THINK IT'S GONNA BE DIFFERENT TYPES.
DIFFERENT TYPES, NOT ACCOUNT 63 BUSINESSES.
YEAH, IT WOULD BE 363 IN THAT OTHER CATEGORY.
AND I THINK IT LENDS ITSELF A LITTLE BIT TO THE ALL OTHER CATEGORY.
THAT'S EXACTLY WHERE I'M GOING.
WHICH IS A, A HUGE MAKEUP OF DIFFERENT BUSINESS TYPES.
AND SOME OF 'EM ARE OUT OF, UH, OUT OF TOWN BUSINESSES.
UM, WHAT DOES THAT MEAN? MEANING SOMEONE LIKE A, UH, LIKE SOMEONE WHO IS A CONSULTANT, LIKE, UH, LIKE WE AS A CITY IN OUR CONTRACTS ASK THAT OUR CONSULTANTS GET A BUSINESS LICENSE.
SO THAT WOULD BE AN EXAMPLE OF AN OUT OF TOWN BUSINESS, BECAUSE THAT BUSINESS IS MORE THAN LIKELY THE CONSULTING FIRM IS NOT LOCATED IN OUR CITY, BUT WE STILL ASK THEM TO GET A BUSINESS LICENSE.
'CAUSE THEY'RE DOING BUSINESS IN OUR CITY.
NO DIFFERENT THAN A CONTRACTOR.
ANOTHER, ANOTHER GOOD EXAMPLE OF THAT WOULD BE CONTRACTORS, I THINK THAT YOU MENTIONED.
IF YOU HAVE OUT TOWN CONTRACTORS WHO ARE DOING WORK IN YOUR CITY MM-HMM.
YOU KNOW, WHETHER THEY'RE, YOU KNOW, LANDSCAPE CONTRACTORS OR, UH, CONTRACTORS THAT ARE DOING WORK IN YOUR CITY, THEY'RE REQUIRED TO HAVE A BUSINESS LICENSE.
SO THEIR BUSINESS MIGHT NOT BE LOCATED IN THE CITY, BUT THEY'RE REQUIRED TO DO GOT IT.
TO GET A BUSINESS LICENSE BECAUSE THEY'RE DOING WORK IN YOUR CITY AND THEY'RE CATEGORIZED UNDER THE OTHER.
THAT'S, THAT'S A REALLY BIG CATEGORY FOR THAT.
THERE'S A SUB AND A GENERAL YEAH.
IS IS A PART OF THE PIE CHART ALREADY.
A ARCHITECTURE, ARCHITECTS, UH, PROFESSIONAL PLUMBER, PROFESSIONAL SERVICES.
LOTS OF THE, THE REASON I'M FOCUSING ON IT IS BECAUSE OF THAT BIGGEST SLICE OF THAT PIE IS THIS ALL OTHER BUSINESS? RIGHT.
SO WE COULD, UH, I MEAN, IT'S NOT SAFE TO GENERALIZE IN THIS CONTEXT, BUT FROM JUST THE SAKE OF OUR CONVERSATION, IT SOUNDS LIKE THEY WOULD BE SERVICE-BASED AND, YOU KNOW, TWO DO, AND IF WE GO BACK TO THE OTHER SLIDE OF THE BREAKDOWN OF THE VARIABLE SERVICES HAS AT A $2 RATE, A LITTLE BIT OF THE BEHIND THE SCENES ON THAT IS, YOU KNOW, THOSE CONTRACTS AREN'T GONNA BE A LARGE AMOUNT.
THEY'RE GONNA BE, LET'S JUST SAY 50,000 FROM HDL
SO THAT IS A VERY SMALL AMOUNT.
THAT'S TECHNICALLY FIVE, OR THAT'D BE $10 THAT THEY WOULD GET CHARGED ON THEIR BUSINESS LICENSE FOR A $50,000 GROSS RECEIPT.
SO USED TO WORKING, IT'S NOT SUCH A BIG BURDEN.
AND THAT'S A LITTLE BIT OF THE, THE CONTEXTUAL BACKUP ON THOSE RATES.
OH, UM, YES, YOU, I HAD SEVERAL QUESTIONS, BUT I'M GONNA STICK TO THIS, UM, PAGE THAT COUNCIL MEMBER MOLINA HAD SAID ALL OTHER, SO THIS WAS RE-CATEGORIZED BASED ON THE STUDY.
ALL THESE BUSINESSES HAS BEEN CATEGORIZED.
SO WHEN YOU DID THAT, DID YOU SEE ANY OPPORTUNITY TO CHANGE THEIR BRACKETS WHERE THEY ARE, LIKE, FOR EXAMPLE, THESE CATEGORIES IN THIS ONE, THEY WERE IN THE WRONG CATEGORY, THEY SHOULD BE IN THIS CATEGORY.
DID YOU SEE THAT OPPORTUNITY IN THIS, IN THIS, UM, SLIDE? UM, YEAH, GO AHEAD, RACHEL.
SO, UM, THOSE ARE NOT ACTUALLY DECIDED BY US AS A CITY.
UM, WHEN THOSE GROSS RECEIPTS COME INTO HDL, THEY MAKE THOSE DECISIONS.
SO IF THE CATEGORIES ARE INCORRECT OR SHOULD BE CORRECTED, THEY WOULD MAKE THOSE DECISIONS ON BEHALF OF THE CITY.
SO WE DON'T MAKE DECISIONS ON OUR OWN BUSINESSES.
WE ARE, WE ARE, UM, WE, WE ARE, UM, YOU KNOW, I MEAN, LOOKING AT ALL THESE OPPORTUNITIES, UM, YES, WE'RE GONNA GET, YOU KNOW, I MEAN, UM, REVENUE GENERATING HERE.
BUT, YOU KNOW, I MEAN, I'M HAVING A HARD TIME, UH, HAVING
[01:15:01]
A, A HICCUP ON THIS BECAUSE WE'RE INCREASING, UM, BUSINESS LICENSES WHEN THE SIMPLE THING THAT THEY'RE REQUESTING FROM US IS TO RENEW THEIR LICENSE IS VERY DIFFICULT, NUMBER ONE.NUMBER TWO, INCREASING THEIR FEE.
ARE WE COVERING SOME INFRASTRUCTURE CHANGES? ARE WE LAYING RED CARPET ON THESE BUSINESSES THAT WE ARE GOING TO, YOU KNOW, I MEAN, HERE WE ARE TAKING, BUT WHAT ARE WE GIVING WHEN THE VERY BASIC THAT THEY ASK FROM ALL? WELL, FROM ME ALL THE TIME.
'CAUSE I MEAN, I'M A BUSINESS OWNER AND I'M A MEMBER OF THE CHAMBER SAYS, RENEWING A BUSINESS LICENSE SENSE IS VERY DIFFICULT.
IT'S VERY CHALLENGING, MOST ESPECIALLY TO THEIR MOM AND POP.
SO I THINK WE HAVE TO TAKE CARE OF THOSE UNDERLYING, IN ORDER FOR US TO MOVE FORWARD WITH SOMETHING THAT WILL BE ACCEPTABLE TO THE BUSINESS COMMUNITY.
THANK YOU, MR. GRANT, I APPRECIATE YOUR COMMENTS.
I ACTUALLY DO THINK THAT'S VERY MUCH CORRECT AND FULL TRANSPARENCY.
MY WIFE AND I ARE BUSINESS OWNERS, UH, HERE IN THE CITY AS WELL.
AND MY WIFE OPERATES A LARGE DAYCARE, UH, HERE IN THE CITY.
UM, SO IT IS A VERY IMPORTANT ISSUE TO US, AND IT IS CLOSE TO OUR HEARTS.
CAN YOU BRING UP THE SLIDE, UH, FEDERAL POLICE, THE ONE WHERE WE WERE COMPARING CITIES? IT WAS THE FIRST ONE THAT I POINTED OUT TO THIS ONE, OR, UH, YES.
SO, SO, YOU KNOW, TO THE POINT OF, UH, MY COLLEAGUES EARLIER AND MAYBE, MAYBE THINGS LIKE APARTMENTS AREN'T AS COMPARABLE BECAUSE RENTS ARE VERY DIFFERENT, BUT SOME THINGS LIKE CARS ARE COMPARABLE BECAUSE VEHICLE PRICES ARE USUALLY STANDARD AND SET BY THE VEHICLE MANUFACTURER, AND THEY HAVE EITHER MARKUPS OR SPECIALS DEPENDING ON THE AREA THAT YOU BUY.
AND WE'RE ABLE TO BUY ANYWHERE IN THE COUNTY ANYWHERE WE WANT.
AND IF WE'RE A RESIDENT NATIONAL CITY, WE PAY THE ADDITIONAL, UM, SALES TAX AS A RESULT NO MATTER WHERE WE PURCHASE VEHICLES.
SO I THINK THAT'S KIND OF A FAIR COMPARISON.
SO, SO TELL ME THE DIFFERENCE BETWEEN A CAR SALES, UM, COMPANY OPERATING A NATIONAL CITY, AND HOW MUCH DID WE PAY IN, UM, UH, OUR CURRENT SYSTEM AND HOW MUCH THEY WOULD PAY TO SELL THE SAME EXACT PRODUCT RIGHT.
IN A CITY LIKE CARLSBAD, IT WOULD DEPEND ON THE SALES TAX RATE THAT THAT CITY HAS.
DO YOU HAPPEN TO KNOW KEN? YEAH.
IT, IT'S, UM, ACTUALLY, YOU KNOW, DEPENDENT UPON WHERE THE PURCHASE OF THE VEHICLE IS MADE.
SO, UM, YOU KNOW, I, WE CAN'T SAY ACTUALLY FROM ONE CITY TO THE NEXT WHAT IT WOULD BE, BUT IT IS BASED UPON, UM, POINT OF PURCHASE SALE.
BUT, BUT LET'S SAY THERE'S A TESLA DEALERSHIP THAT WANTS TO SELL A PRODUCT, RIGHT? SAME VEHICLE, SELL IT HERE IN NATIONAL CITY.
WE DON'T HAVE ANY TESLA DEALERSHIPS.
WANNA SELL A PRODUCT HERE, RIGHT? UM, A CAMARO HERE IN NATIONAL CITY, OR A CAMARO IN CARLSBAD, THE DEALERSHIP, IN ORDER TO SELL THAT VEHICLE IN CARLSBAD, BECAUSE THE CITY OF CARLSBAD HAS DECIDED TO HAVE A, UM, UM, A DIFFERENT MODEL AND A GROSS RECEIPTS MODEL THAT BUSINESS IN ORDER TO OPERATE HAS TO PAY A HIGHER AMOUNT YES.
TO THE CITY, TO THE CITY'S GENERAL FUND.
AND SO THE QUESTION I HAVE IS LIKE, IF WE'RE SELLING THE SAME PRODUCT, I THINK WE HAVE TO MAKE SURE THAT OUR BUSINESSES, ESPECIALLY THE ONES THAT ARE GENERATING THE MOST REVENUE, PAY OUR FAIR SHARE IN ORDER FOR US TO REINVEST THAT BACK INTO THE COMMUNITY, RIGHT? IF THE BUSINESSES, THE SAME BUSINESSES ARE BEING ASKED TO PAY THIS A, A, A DIFFERENT AMOUNT IN A DIFFERENT CITY, RIGHT? SO I THINK, I THINK ULTIMATELY, UH, BUSINESSES WILL OPERATE IN OUR COMMUNITY AND, AND IT'S IMPORTANT THAT WE CONTINUE TO WORK WITH THEM.
AND AT THE SAME TIME, WE ASK FOR EVERYBODY TO PAY OR FAIR SHARE.
SO THAT'S JUST SOMETHING THAT I KIND OF INHERENTLY BELIEVE IN.
AND ALSO, UM, NOTICE, RIGHT? WITH THE SAME KIND OF COMPARISON WHEN IT COMES TO BUSINESS.
UM, AND I, YOU KNOW, JUST TO, UM, KIND OF STRESS THE URGENCY ON THIS, WE'VE DISCUSSED THIS FOR A LONG TIME.
I THINK THE INITIAL KIND OF DISCUSSION CAME LATE LAST YEAR, LATE LAST FALL.
UH, YEAH, WE DID A REVENUE PRACTICE WITH, UH, FORMER ASSISTANT, OR EXCUSE ME, ACTING CITY MANAGER, SCOTT, WHO, YEAH.
THAT WAS, THAT WAS A LONG TIME AGO.
UM, AND FOR A WIDE RANGE OF REASONS, WE JUST HAVE NOT MOVED FORWARD.
AND NOW WE'RE IN A VERY DIFFICULT TIMELINE, UM, AS A RESULT OF THAT.
RIGHT? SO, SO LET'S SAY, LET'S SAY WE, WE DECIDE TO MOVE FORWARD.
LET'S JUST KIND OF, UH, PLAY THIS OUT.
UM, WHAT IS THE PROCESS LIKE? HOW MANY ADDITIONAL MEETINGS DO WE NEED TO HAVE? OBVIOUSLY THIS IS NOT KIND OF LIKE THE END ALL BE ALL, AND THEN WE DON'T DECIDE THIS, RIGHT?
[01:20:01]
ULTIMATELY, THE VOTERS WILL DECIDE IF WE DECIDE TO PUT SOMETHING ON IT, THE VOTERS DECIDE WHETHER OR NOT THEY WANT IT.BUT, UM, UH, WHAT IS THE, UH, WHAT IS THE PROCESS LIKE IF WE MOVE FORWARD? IT DEPENDS ON WHAT IS DETERMINED TONIGHT.
SO IF, UH, THE COUNCIL AND MAYOR TONIGHT DECIDE TO GIVE US DIRECTION TO PROCEED WITH A CERTAIN MODEL, UH, THE CITY WOULD NEED TO THEN BEGIN THE PROCESS OF DEVELOPING THE BALLOT LANGUAGE.
AND THEN WE WOULD HAVE TO HAVE, UH, AT LEAST ONE MORE MEETING FOR ADOPTION OF THAT BALLOT MEASURE TO BE PLACED ONTO THE BALLOT, UH, BASED ON AN AGREED UPON BALLOT LANGUAGE.
UM, IN BETWEEN THAT TO YOUR DIRECTION, WE WOULD DO PUBLIC OUTREACH, PUBLIC POLLING, UH, AND ANY OTHER FORMS OF THOSE THAT YOU WOULD LIKE US TO DO.
AND, BUT THERE'S A TIMELINE TO GET ITEMS ON THE BALLOT IN NOVEMBER.
WHAT IS THAT TIMELINE LIKE? IT NEEDS TO BE DONE, UH, BY AUGUST, UH, WITH THE COUNTY.
HOWEVER, WE GO DARK IN JULY, SO WE WOULD NEED TO HAVE EVERYTHING BUTTONED UP BY JUNE OF THIS YEAR, MEANING THE COUNCIL WOULD NEED TO APPROVE AND ADOPT THE BALLOT LANGUAGE TO BE PLACED ON THE BALLOT BY NO LATER THAN OUR SECOND MEETING IN JUNE.
THAT'S ONLY IN APRIL, MAY, JUNE, 30 DAYS, TWO MONTHS, YEAH.
SO, UM, AGAIN, NOT TO STRESS THE URGENCY, BUT WE'VE HAD THE SERIES OF DISCUSSION OVER THE LAST COUPLE YEARS ON OUR BUDGET, UM, AND I KNOW WE HAVEN'T HAD A BUDGET DISCUSSION YET, UH, FOR THIS YEAR'S BUDGET, BUT I KNOW STAFF HAS BEEN WORKING ON THIS DILIGENTLY.
AND, UM, JUST DO WE HAVE A, UH, PROJECTION FOR NEXT YEAR'S BUDGET OUTTA CURIOSITY? THAT'S NEXT TUESDAY'S AGENDA.
UM, I DON'T WANT TO DISCLOSE A NUMBER THAT IS STILL BEING REFINED, SO I'M GOING TO STEER AWAY FROM THAT.
BUT, BUT I CAN TELL YOU, I MEAN, AS WE'VE, UM, ADOPTED DIFFERENT MEASURES THROUGHOUT THE YEAR, PARTICULARLY AS IT RELATES TO PERSONNEL COSTS AND CONTRACTS WITH THE BARGAINING UNITS, YOU KNOW, YOU CAN ADD UP ALL THOSE NUMBERS, RIGHT? SO I CAN TELL YOU THAT THE CURRENT SHORTFALL, UM, IS ACTUALLY HIGHER THAN THE COM, THE TOTAL REVENUE THAT THIS PROJECT, THAT THIS PROGRAM, UM, THIS GROSS RECEIPTS TAX WOULD GENERATE AT THIS POINT.
AGAIN, THERE'S, THERE WILL BE SOME REFINEMENTS, AND AFTER PRESENTING THE BUDGET, UM, COUNSEL WILL HAVE THE ABILITY TO, TO PROVIDE DIRECTION AS TO ANY CHANGES YOU WOULD LIKE TO SEE.
AND WHICH OF THE, UM, OPTIONS THAT WERE PRESENTED.
'CAUSE THERE WAS THREE OPTIONS PRESENTED.
I THINK EACH ONE WOULD BRING A DIFFERENT AMOUNT, RIGHT? SO MODEL THREE, I BELIEVE, UH, WOULD GENERATE AN ADDITIONAL ABOUT 7 MILLION, SEVEN AND A HALF MILLION DOLLARS.
AND, UM, AT, AT THIS TIME, THE BUDGET YOU'LL SEE ON TUESDAY, UM, IS TRENDING TOWARDS HIGHER THAN THAT AMOUNT AS FAR AS THE DEFICIT FOR FISCAL YEAR 27.
I, I APPRECIATE THE INSIGHT AND I DEFINITELY LOOK FORWARD TO SOME OF THOSE ADDITIONAL DISCUSSIONS.
UM, AND I KNOW STAFF IS TRYING TO DO ITS DUE DILIGENCE TO MAKE SURE THAT WE RUN OUR DEPARTMENT SUFFICIENTLY, BUT I THINK, I THINK WE CAN'T STRESS THIS ENOUGH.
WE'RE UNDER A VERY SHORTENED TIMELINE FOR A GREAT MANY REASONS, AND WE CAN DISCUSS THAT AND GO THROUGH IT, BUT I DON'T KNOW IF IT'S VERY PRODUCTIVE.
UM, AND I WOULD, I WOULD IMPLORE MY COLLEAGUES, THIS IS NOT THE END ALL BE ALL, AND I ACTUALLY ACTUALLY SHARE THEIR FRUSTRATIONS WITH MAYBE SOME, UH, NEED TO HAVE ADDITIONAL MEETINGS ABOUT THIS AND PREP ABOUT THIS.
SO WE FULLY UNDERSTAND THIS AS WE'RE DISCUSSING IT TO THE PUBLIC, BUT IT ISN'T THE END ALL BE ALL.
AND IF WE DO DECIDE TO MOVE FORWARD, UM, THERE'S STILL A SERIES, AT LEAST ONE MORE MEETING, UM, ON THIS.
AND, AND HOPEFULLY TWO WE CAN SQUEEZE IN TO ALLOW FOR PUBLIC COMMENT TO ALLOW FOR PUBLIC DISCUSSION AND ALLOW FOR MODIFICATIONS TO BE MADE.
BUT I THINK, I THINK WE OWE IT TO OURSELVES AND OUR CITY TO AT LEAST EXPLORE THIS OPTION AND CONTINUE TO EXPLORE BEFORE WE PULL THE PLUG.
AND SO THAT WOULD BE MY, UM, ASK OF, OF, OF MY COLLEAGUES.
UM, SO, AND I AGREE THAT WE SHOULD, UM, MOVE AS, AS SWIFTLY AS, UH, POSSIBLE.
I'M, AGAIN, I'M IN SUPPORT OF, UH, OPTION THREE.
I THINK IT'S THE MOST EQUITABLE, AND IT'S CORRECTING KIND OF IN, UM, IN IMBALANCE RIGHT NOW WITH OUR EXISTING BUSINESS LICENSES.
AND WE SHOULD ALSO REMEMBER THAT
[01:25:01]
WE'RE LOOKING AT DIFFERENT THINGS FOR OUR BUDGET.SO YES, WE'RE LOOKING AT EFFICIENCIES, WE'RE LOOKING AT CUTS, BUT WE ALSO NEED TO LOOK AT DIFFERENT REVENUE OPTIONS.
AND WE HAVE DISCUSSED THIS EXTENSIVELY, AND WE ALL AGREE.
I THINK THAT WHEN YOU LOOK AT SALES TAX INCREASE OR SOME OF THE OTHER OPTIONS BEFORE US FOR REVENUE GENERATING, THAT THOSE, THOSE ARE MUCH MORE DIFFICULT OR I, IN, AND I WOULD ARGUE THAT THOSE ARE, THOSE OPTIONS.
LIKE A SALES TAX IS MORE INEQUITABLE BECAUSE, UM, IT, UH, REALLY DISPROPORTIONATELY IMPACTS, UM, YOU KNOW, PEOPLE WHO ARE, ARE, ARE, ARE SPENDING AND IT DISPROPORTIONATELY IMPACTS, UH, WORKING CLASS.
AND THIS IS MORE CORRECTING AN ISSUE WITH, UM, BUSINESSES IN SOME OF OUR HIGHEST REVENUE GENERATING BUSINESSES.
SO THIS MODEL SEEMS TO ME TO MAKE THE MOST SENSE.
I I STILL THINK WE SHOULD STUDY IT.
I, I WOULD RECOMMEND, UM, THAT WE, AND IF, UM, WE NEED TO MAKE A MOTION, I CAN MAKE A MOTION, BUT I WOULD RECOMMEND THAT WE DO ONE, AT LEAST ONE AND, AND DIRECT STAFF TO START ORGANIZING THAT NOW A WORKSHOP, UH, SPECIFICALLY WITH THE CHAMBER OF COMMERCE.
I DON'T KNOW IF SOUTH COUNTY EDC IS A GOOD ONE.
UM, UM, I'M DISAPPOINTED THE CHAMBER ISN'T HERE, SO HOPEFULLY, UH, NEXT TIME WE JUST MAKE SURE THEY NEED TO HAVE A REPRESENTATIVE HERE FOR THIS.
WE SHOULD BE GOING TO THEIR MEETINGS.
THEY'RE, UM, IF, IF WE GIVE DIRECTION, I GET THIS KIND OF EARLY, SO WE'RE JUST DISCUSSING THIS.
SO THIS IS JUST THE FIRST, THE FIR FIRST ROUND.
BUT I THINK, UH, IF WE AS A BODY THINK THAT WE'RE GONNA MOVE FORWARD WITH THIS, THEN, UM, THEN YEAH, I THINK WE SHOULD BE REALLY PROACTIVE WITH THE, WITH THE OUTREACH.
AND I DO WANT TO HEAR FROM THE, THE BUSINESSES, BUT IT IS A TIGHT, IT IS A TIGHT, UH, UH, UH, TURNAROUND.
SO, UM, UH, MY, UH, ANOTHER QUESTION I HAD, UM, ON THE SERVICES, WHAT ARE, SO THE SERVICES ARE THOSE LIKE BEAUTY SALON, NAIL SALON, BARBER, ARE THOSE CONSERVED SERVICES? OR WHAT WERE THE, UH, INDUSTRY CATEGORIES FOR SERVICES? LAWYER? HEY, ATTORNEY.
I, I KNOW, I THINK THAT WAS NO ATTORNEY.
YEAH, THERE'S A, YEAH, IN THE, UM, IN OUR MUNICIPAL CODE IN THIS SECTION, THERE'S AN ACTUAL ALIGNMENT BASED ON THE NATIONAL GROUPS, UH, THAT BREAKS DOWN EVERY SINGLE BUSINESS TYPE AND THE CATEGORY THEY FALL INTO IN THE CLASS.
SO THAT ACTUALLY IS IN OUR, OUR CODE.
AND IT DETAILS EVERY SINGLE ONE, I THINK IT TALKS ABOUT WHAT FALLS IN THOSE CATEGORIES TOO.
IS THAT WHAT YOU'RE ASKING? WELL, YEAH, BUT I WAS JUST WONDERING KIND OF LIKE EXAMPLES OF WHEN I WAS LOOKING AT FEES, JUST SO I, FOR THE FEES.
SO I COULD KIND OF UNDERSTAND BETTER WHAT, UH, 'CAUSE I'M TRYING TO ALSO UNDERSTAND WHAT THE IMPACTS ARE GONNA BE, LIKE, WHAT THE REAL ACTUAL IMPACTS.
LIKE I WANT TO HEAR FROM LIKE, THE MILE OF CARS, HOW WOULD THIS IMPACT, I WANT TO HEAR FROM PEISHA OR FROM PARADISE VALLEY HOSPITAL, OR PLAZA VENITA, WESTFIELD.
LIKE, I WANT TO HEAR, YOU KNOW, FROM SOME OF OUR MAJOR EMPLOYERS, HOW, HOW THIS WOULD, UM, YOU KNOW, WHAT THEIR THOUGHTS ARE, UM, HOW, HOW THEY THINK THIS, UM, YOU KNOW, WOULD IMPACT.
BUT I, I DO FULLY, UM, I, I, I SUPPORT MOVING FORWARD ON THIS AND GIVING STAFF WHAT, WHAT'S, WHAT'S NEEDED TO KIND OF MOVE FORWARD WITH THE NEXT STEPS.
CHAIR DES, I BELIEVE YOUR NEXT THEN I'LL, I WOULD, OH, REAL QUICK.
ADITA, CAN I, CAN I, REAL QUICK, ONE COMMENT, I, I DID FORGET.
I DO AGREE WITH YOU COUNCIL MEMBER IMANI, THAT, UM, BECAUSE, BECAUSE YOU DID MAKE THE COMMENT ABOUT THE, OUR EXISTING, UH, BUSINESS LICENSES AND THAT THERE'S WAYS THAT WE NEED TO IMPROVE THAT.
AND I THINK THOSE ARE THINGS THAT WE COULD AND SHOULD DO NOW AS MUCH AS POSSIBLE.
AND THAT COULD BE PART OF, I THINK THE PITCH.
LIKE, YOU KNOW, WE'RE NEEDING MORE REVENUE.
PART OF WHY WE DON'T HAVE MORE REVENUE IS THIS IMBALANCE.
SO, BUT WE CAN, WE'RE GONNA DEMONSTRATE AND TAKE THE FIRST STEP, THIS IS HOW WE FIX OUR BUSINESS LICENSE.
THIS IS HOW WE PROACTIVELY, UM, ADDRESS OUR, OUR, OUR, OUR CHAMBER.
SO I, I JUST WANNA SAY, I DO THINK THAT WE COULD DO SOMETHING, UH, NOW ABOUT THAT AND KIND OF USE THAT TO DEMONSTRATE, YOU KNOW, OUR COMMITMENT MOVING FORWARD AS WE CONSIDER THESE, THE, THIS, THIS TAX.
UM, I'LL THREAD LIGHTLY ON THIS ONE.
UM, THIS IS OUR BUSINESS COMMUNITY AND WE'RE TAXING THEM.
UH, AND THEN WE HAVEN'T TALKED TO THEM.
UM, I BELIEVE THAT, UM, WE HAVE TO, UM, ALLOW THEM TO UNDERSTAND THIS PROCESS AND NOT, UM, BE, UM, YOU KNOW, I MEAN, I UNDERSTAND TIME OF THE ESSENCE, BUT WE'RE TALKING ABOUT THEIR BUSINESSES, MOST ESPECIALLY THE MOM AND POP BUSINESSES IN OUR CITY.
AND THOSE SMALL BUSINESSES IN OUR CITY IS THE HEARTBEAT OF OUR CITY, AND WE'RE TAXING THEM.
AND WE'RE NOT EVEN, YOU KNOW, I MEAN, THEY'RE NOT HERE, RIGHT? WE'RE, WE'RE PROVIDING, WE HAVE TO PROVIDE THEM THIS INFORMATION SO WE GET THEIR BUY-IN, YOU KNOW, I MEAN, TAXING THEM.
WHAT'S THE RETURN OF THEIR INVESTMENT? YOU KNOW, I MEAN, JUST TO RENEW THEIR BUSINESS LICENSE IS A HEARTACHE FOR THEM, RIGHT? YOU KNOW, I MEAN, ARE WE
[01:30:01]
ADDING INFRASTRUCTURE THAT WE'RE GONNA ADD MORE PARKING ON, ON THEIR BUSINESSES? LIKE, THESE ARE THINGS THAT WE NEED TO STUDY.AND, YOU KNOW, I MEAN, I APPRECIATE THIS FEASIBILITY, BUT I THINK WE NEED TO DELVE MORE ON IT AND MAKE SURE THAT WE ARE RESPONSIBLE AND DILIGENT AND NOT BEING IN A HURRY.
LET'S TAX OUR BUSINESSES AND WE'RE NOT GIVING THEM ANYTHING.
COULD WE GO BACK TO THE CHART? UM, ONCE AGAIN, IT'S THAT ONE THAT COMPARES THE FOUR CITIES.
IT'S THE ONE IMMEDIATELY BEFORE THE MODELS.
SO YOU GOT THE MODELS AND IT IS THE CHART IMMEDIATELY BEFORE THE MODELS ESTIMATED REVENUE.
IT'S THE ESTIMATED REVENUE BUSINESS SCENARIOS.
I KNOW IT WAS BROUGHT UP EARLIER ABOUT COMPARISON BETWEEN A BUSINESS HERE IN NATIONAL CITY AND ONE, YOU KNOW, IN ANOTHER CITY.
AND YOU KNOW, AND, AND I KNOW YOU SAID THAT THIS DOESN'T MAKE THAT BIG OF A DIFFERENCE FROM THEIR STANDPOINT.
WE HAVE TO LOOK AT THIS FROM, REMEMBER, THIS IS GONNA GO TO THE VOTERS.
YOU HAVE TO LOOK AT IT FROM THE VOTER STANDPOINT.
AND SO IF WE'RE LOOKING AT THE IDEA OF, YOU KNOW, OUR BUSINESS IS GONNA BE CHARGED THIS MUCH, AND A NEIGHBORING BUSINESS IS GONNA BE CHARGED THIS MUCH, FIRST CLICK IN A VOTER'S MIND IS GONNA BE, HEY, WE'RE GONNA BE LOSING OUR BUSINESSES.
WE'RE NOT GONNA BE ABLE TO GET GOOD BUSINESSES HERE.
THEY'RE GONNA GO THERE, EVEN THOUGH YOU'RE SAYING IT'S NOT GONNA BE THAT BIG A DIFFERENCE.
AND FROM THE CORPORATE STANDPOINT, IT'S NOT.
BUT THE CORPORATES AREN'T GONNA VOTE ON THIS.
SO WE HAVE TO TAKE A LOOK AT IT FROM THAT STANDPOINT.
YOU'VE GOT CHULA VISTA, OCEANSIDE, AND VISTA UP THERE, AND I UNDERSTAND WHY YOU'RE USING OCEANSIDE AND VISTA.
THERE, THERE, THERE'S SOME COMPARABLES WITH US, BUT WE'RE NOT IN COMPETITION WITH THEM.
SHULA VISTA AND SAN DIEGO BASICALLY ARE THE TWO THAT WE ARE IN COMPETITION WITH.
THOSE ARE THE ONES THAT SURROUND AND, AND DO THE BUSINESS HERE IN THIS AREA, IN THIS SOUTH COUNTY AREA.
SO, FOR ONE THING, WE NEED TO HAVE CITY OF SAN DIEGO INVOLVED.
I KNOW THEY'RE A ENTIRELY DIFFERENT MONSTER, BUT THAT'S THE REALITY.
THE OTHER THING IS, WHEN WE DO COME BACK, IF, SHALL WE SAY THE COUNCIL DOES SAY, WE WANT YOU TO PURSUE TAKING A LOOK AT, AT THE MODEL THREE WHERE YOU HAVE NATIONAL CITY THAT'S CURRENT BESIDE IT, WE NEED TO HAVE THE NUMBERS.
SO YOU, YOU HAVE ACTUAL COMPARISONS, UM, IS, I, I, I THINK WOULD BE EXTREMELY, UH, EXTREMELY VALUABLE.
UM, THE OTHER THING, AND I I AGREE WITH, UH, REMEMBER YAMANI, UM, I KNOW WE WANNA LOOK TOWARD, YOU KNOW, GETTING THIS THING GOING, BUT I, THIS IS THE LAST THING YOU WANNA GET WRONG.
AND PARTICULARLY IF YOU'RE GOING TO THE VOTERS AND YOU HAVEN'T THOUGHT IT THROUGH, UH, THE, UH, BECAUSE THEY SAY THEY'LL, THEY'LL BE VERY PICKLED, AND YOU DON'T WANNA HAVE TO TRY AND DO THIS A SECOND TIME.
UH, WE'VE BEEN THROUGH THESE KIND OF THINGS BEFORE, UM, THE, AND SO I WANNA MAKE SURE THAT WE REALLY KIND OF THINK THIS STUFF THROUGH AND MAKE SURE WHAT OUR PRESENTATION AND REALIZING THAT ANYTHING YOU PRESENT TO THE VOTERS, YOU, YOU DON'T WANNA SLAP SOMETHING IN FRONT OF THEM AND YOU DON'T WANNA BE PUT ON THE DEFENSIVE.
SO THE MORE THINGS THAT YOU ALREADY HAVE YOUR ANSWERS, AND YOU PREPARE IT IN SUCH A WAY FOR THE VOTERS, IS A MUCH BETTER CHANCE OF GETTING IT PASSED.
ESPECIALLY AS WHAT LOOKS LIKE MAY BE A VERY CROWDED TAX, UH, BALLOT COME NOVEMBER IN THIS COUNTY.
UH, A LOT OF THINGS ARE ALREADY ALREADY GOING ON THE BALLOT, EITHER TAXES GOING ON THERE, OR REPEALS OF TAXES GOING ON ON THE BALLOT NOVEMBER.
UM, SO THOSE, THOSE ARE GONNA BE DONE.
THE OTHER THING IS, IF WE'RE LOOKING AT A FAIRNESS THING, YOU KNOW, WE, THERE'S TWO DIFFERENT THINGS WE'RE LOOKING AT HERE.
ONE THING WE'RE TALKING ABOUT FAIRNESS, IF YOU'RE TALKING ABOUT PURE FAIRNESS BETWEEN THE BIG BUSINESSES, SMALL BUSINESS, WHAT WE WOULD DO IS INDEED, WE WOULD GO TO A MORE OF A GROSS RECEIPTS, BUT WE WOULD GO WITH THE AMOUNT OF INCOME WE DO RIGHT NOW AND SAY, SMALL BUSINESSES SHOULD PAY SO MUCH.
THE LARGER BUSINESSES SHOULD BE PAID BASED ON THEIR GROSS RECEIPTS IN THE AMOUNT OF INCOME WE GET RIGHT NOW.
IF IT'S JUST PURELY ON FAIRNESS.
BUT WE'RE ALSO LOOKING AT WANTING TO GET LARGER INCOME.
THAT'S, THAT'S, THAT'S TWO DIFFERENT THINGS.
AND, UH, SO, YOU KNOW, ONE THING YOU'D WANNA LOOK FOR IN FAIRNESS, WITHIN THE SYSTEM THAT WE HAVE, WHICH WE CAN'T CHANGE THAT WITHOUT GOING TO THE VOTERS, BUT STILL, BUT THAT WOULD BE THE FAIRNESS, A ASPECT.
THE OTHER PART IS HOW, IS TRYING TO GET A MUCH LARGER HUNK OF MONEY INSTEAD OF GOING,
[01:35:01]
YOU KNOW, 600,000, WE'RE LOOKING AT 7 MILLION.UM, SO, YOU KNOW, YOU CAN'T EQUATE ONE OR THE OTHER.
AND WE JUST YELL FAIRNESS ALL THE TIME.
PEOPLE ARE GONNA SAY, YEAH, BUT WHAT YOU'RE DOING IS ACTUALLY A TAX, A BIG TAX INCREASE.
UM, SO, UM, SO I GOT, I THINK WE, THE, THE MESSAGE IS GONNA BE EXTREMELY, UM, WELL CRAFTED BECAUSE IF WE PUT OUT SOMETHING OUT THERE THAT IS, THE DISCUSSION IS SHALLOW, THE VOTERS WILL SEE RIGHT THROUGH IT.
AND THIS, YOU KNOW, WE CAN DO ALL THE WORK WE WANT TO, AND ALL THE DREAMING.
THE OTHER THING IS THIS IS A TAX THAT WOULD BE IN HINDSIGHT.
IN OTHER WORDS, YOU HAVE TO WAIT TILL THE END OF THE YEAR TO GET YOUR NUMBERS TO SEE WHAT IS GONNA BE FOR THEIR, THEIR GROSS RECEIPTS FOR THAT PREVIOUS YEAR.
SO IF THIS WAS VOTED ON IN NOVEMBER, DEPENDING ON WHEN WE MADE IT EQUITABLE, WHETHER IF IT WAS THE 1ST OF JANUARY OR WE WAITED 1ST OF JULY TO START IT OR WHATEVER, IT'S A YEAR AND A HALF, TWO YEARS BEFORE WE'RE GONNA SEE ANY OF THIS MONEY.
WE HAVE TO THINK OF WHEN WE'RE THINKING ABOUT OUR BUDGET.
EVEN IF THIS, EVEN WITH THE SCENARIO THREE, AS I UNDERSTAND IT, IF WE, IF WE, IF IT, IF WE PUT THAT ON THE BALLOT IN ITS FULL FORM AND IT GOT VOTED ON AND APPROVED, WE'RE NOT GONNA SEE ANY OF THAT MONEY FOR AT LEAST A MINIMUM A YEAR AND A HALF.
AND SO THAT CAN'T BE, YOU KNOW, THAT'S, THAT'S THE OTHER REALIZATION WE HAVE TO HAVE.
SO THIS IS NOT GONNA HAVE, THIS IS NOT GONNA BE A SHORT TERM, UH, UM, RELIEF.
THIS IS LOOKING SOMETHING AS FAR AS EVEN THE, THE INCREASED TAXATION IS MORE LONG TERM.
UM, SO I JUST WANT, WANNA MAKE SURE WE'RE GOING AT THIS THING WITH EYES WIDE OPEN.
'CAUSE I THINK WE, WE'VE BEEN THROWING A LOT OF STUFF TODAY, AND A LOT OF IT IS, IS A LITTLE CONFUSING.
AND IF IT'S CONFUSING FOR US, JUST THINK WHAT IT WOULD BE FOR THE PUBLIC AND WHAT IT WOULD BE FOR A LOT OF BUSINESSES IF WE DON'T HAVE, IF WE DON'T HAVE THE PRESENTATION RIGHT.
AND REALIZING WHO OUR AUDIENCE IS THAT WE'RE PRESENTING TO THROUGH THE CHAIR.
AS BOTHERED BY THE STATEMENT OF OUR DIRECTOR THAT WE DISCONNECTED THE BUSINESS COMMUNITY FROM THE CITY.
I THINK I WOULD REQUEST OUR CITY COUNCIL TO LOOK INTO THAT.
I, I, I'M SORRY, I DIDN'T QUITE UNDERSTAND WHAT YOU WERE, THE BUSINESS COMMUNITY WAS DISCONNECTED FROM THE CITY.
FINANCE DIRECTOR SAID SHE DOESN'T HAVE ANY JURISDICTION.
WE DON'T HAVE ANY JURISDICTION ON THE BUSINESSES.
WELL, ON THE, I WOULD LIKE TO UNDERSTAND THAT PROCESS ON, ON, ON THE CATEGORIZATION, WASN'T IT? THAT'S CORRECT.
SO WHEN THE BUSINESSES APPLY, IT'S AT THE, UM, HINDSIGHT OF HDL TO MAKE THE DECISIONS AND WHAT TIERS THEY FALL INTO.
THEY DON'T SEND US A FILE, UM, FIRST TO REVIEW.
IT REALLY IS AT THEIR PURVIEW IN TERMS OF HOW THEY APPLY THE BUSINESSES APPLY AND WHAT CATEGORIES THEY FALL INTO.
THAT'S A VERY GOOD BUSINESS PRACTICE FAILURE.
IT'S A FAILURE ON OUR PART, WHY THIS HAPPENED.
SO I WOULD LIKE THAT TO BE LOOKED INTO MAYOR.
AND IF THIS WASN'T SEEN IN 2017, IT'S 2025 OR 26, I WOULD LIKE TO SEE IT ME ASK YOU THAT.
ARE WE UNIQUE IN THAT OR IS THAT A STANDARD CITY PRACTICE? I MEAN, IS THAT STANDARD AMONG ALL CITIES? IT'S STANDARD WHEN, BECAUSE WE'RE CONTRACTED WITH HDL, IT'S OUR MUNI CODE.
SO WE PROVIDE THAT MUNI CODE TO HDL TO FOLLOW, UM MM-HMM
WE USED TO DO IT IN HOUSE, IF YOU RECALL, WHEN BUSINESS LICENSE WAS IN HOUSE.
BUT SINCE WE'VE CONTRACTED WITH HHDL, THEY ACTUALLY PERFORM THOSE DUTIES FOR US.
IT'S BASICALLY A SELF-CERTIFICATION.
SO, YOU KNOW, WE, WE, YOU KNOW, HAVE TO TAKE THEM AT THEIR WORD FOR WHAT THEY'RE, YOU KNOW, AND THEN WE DO AUDITING AS SHE MENTIONED, YOU KNOW, TO, TO VERIFY THAT.
BUT IT'S BASICALLY A SELF-CERTIFICATION MEMBER BUSH.
UM, I'M READY TO MAKE A MOTION.
I WOULD ASK THAT MY COLLEAGUE SUPPORT BECAUSE, UM, WE'RE JU I, I REALLY THINK WE NEED TO MOVE THIS WE TO LOSE NOTHING BY MOVING IT FORWARD.
WE HAVE A CHANCE TO, UM, YOU KNOW, PULL BACK IF NEEDED.
UM, BUT I WOULD MAKE A MOTION TO DIRECT STAFF TO MOVE FORWARD WITH STUDYING MODEL THREE AND BEGIN PUBLIC OUTREACH, POLLING AND BALLOT MEASURE DEVELOPMENT.
I ALSO REQUEST STAFF HAVE AT LEAST ONE WORKSHOP WITH OUR NATIONAL CITY CHAMBER AND POTENTIALLY OUR SOUTH COUNTY EDC.
AND I REQUEST FURTHER UPDATES THAT STAFF UPDATE, UH, THE PRESENTATION, UM, BASED ON OUR CITY COUNCIL, UH, FEEDBACK TODAY AND FURTHER LOOK INTO THE BUSINESS LICENSE, THE CURRENT BUSINESS LICENSE ISSUE, UH, THAT WE'VE TALKED ABOUT AS WELL.
[01:40:01]
YOU LIKE.I THINK IT IS VERY IRRESPONSIBLE ON OUR PART TO MOVE FORWARD WITHOUT PROPER, UM, YOU KNOW, DUE DILIGENCE ON OUR PART.
THIS IS OUR BUSINESS COMMUNITY ONE, WE DISCONNECTED THEM ALREADY.
TWO, THEY HAVE REQUESTS OR THEY HAVE BEEN COMING, YOU KNOW, I MEAN, SINCE I SAT IN 2023, YOU KNOW, I MEAN THAT THE BUSINESS LICENSING IS JUST CONVOLUTED OR, OR VERY, YOU KNOW, I MEAN, UM, DIFFICULT, UM, NOT HAVING, YOU KNOW, I MEAN, NOT BEING ABLE TO GET THE BUY-IN FROM THE BUSINESS COMMUNITY, YOU KNOW, I MEAN, THIS BALLOT IS GONNA FAIL.
SO, SO COUNCIL MEMBER, I, UM, UNDERSTAND WHAT YOU'RE SAYING, BUT THAT'S WHAT THIS PROCESS IS FOR.
SO WE HAVE THE OPTIONS TO NOT MOVE FORWARD AT ALL WITH THIS AND KILL IT RIGHT HERE.
THIS, THE REASON WE'RE HERE IS BECAUSE WE PAID MONEY AS A CITY TO STUDY THIS.
THEY STUDIED IT AND THEY BROUGHT BACK FORWARD WHAT THESE PRELIMINARY NUMBERS ARE.
AND I THINK NOW IT'S UP TO US TO GET FURTHER REFINEMENTS TO ENGAGE THE BUSINESSES, BECAUSE I DO WANNA SEE OUR BUSINESSES MORE ENGAGED, BUT IF WE DON'T, WE DIDN'T HAVE ALL OF THIS DATA TO ENGAGE THEM WITH IN THE FIRST PLACE.
SO FOR ME, I WANT TO MOVE FORWARD WITH THE MOST ASSERTIVE, AGGRESSIVE OPTION, AND THEN WE CAN DO THE PUBLIC OUTREACH PART OF IT, WHICH WILL, YOU KNOW, SO THEN WE CAN HEAR FROM THEM.
SO, BECAUSE THERE'S A LOT OF NUANCE IN THE RATES, RIGHT? WHETHER IT'S WE'RE CHARGING A DOLLAR, $2, $3.
AND SO I THINK WHEN OUR OUTREACH, WE CAN DETERMINE THAT.
SO, BECAUSE I AGREE WITH WHAT YOU'RE SAYING, BUT I THINK THAT, THAT THIS IS PART OF THE PROCESS AND WE CAN'T SPEND ALL THIS MONEY AND BAKE SOMETHING IN IF WE'RE NOT, LIKE, WE DON'T NEED TO WASTE MONEY EITHER.
AND I THINK THIS IS FOLLOWING THE PROCESS, BUT THEN WITH THE STRICT, THE, THE TIMELINE THAT WE HAVE, THANK YOU.
UM, UH, I WANNA, UM, EXPRESS MY SUPPORT IN, IN AS FAR AS THE MOTION IS CONCERNED.
UM, UH, I AM IN FAVOR OF MOVING FORWARD.
UM, I DO WANT TO BE CAREFUL WITH SOME OF THE CHARACTERIZATION THAT IS HAPPENING REGARDING THE CITY DISCONNECTING FROM THE BUSINESS COMMUNITY.
I DON'T, THAT'S NOT THE MESSAGE I'M GETTING.
UM, SO I, I WANNA BE CAREFUL ABOUT THAT CHARACTERIZATION.
SO PERHAPS IN A FUTURE CONVERSATION WE CAN UNDERSTAND THAT A LITTLE BIT BETTER.
AND, UM, BECAUSE IF, IF, IF WE'RE SAYING
THAT'S NOT THE MESSAGE I HEARD TODAY.
AND SO, UM, IF SOMEBODY ELSE HERE IS THAT'S THE MESSAGE THEY'RE TAKING, THEN I WOULD HOPE THAT WE ARE MORE CAREFUL NEXT TIME WITH HOW WE ARE INTRODUCING THIS, THE, THE JUSTIFICATION FOR IT.
UM, I UNDERSTAND MEMBER YI'S CONCERN, I SHARE SOME OF THAT CONCERN, BUT IT ISN'T ENOUGH FOR ME TO THINK WE SHOULD NOT PURSUE THIS OPTION.
I AM INTERESTED IN PURSUING THIS OPTION.
AND THE, UM, FROM WHAT I UNDERSTOOD, NEXT STEPS INCLUDES OUTREACH TO THE COMMUNITY, TO BUSINESS COMMUNITY TO THE CITY OF NATIONAL CITY TO ANYBODY THAT WANTS TO LISTEN TO THIS.
UM, I THINK AS MEMBER BUSH SAID IS, IS THAT'S THE PROCESS THAT WE'RE UNDERGOING, RIGHT? IN ORDER TO GET THIS TO THE VOTERS IN NOVEMBER, UM, WE WOULD NEED TO COMPLETE ALL OF THIS BY, I THINK I HEARD YOU SAY AUGUST.
UM, AND SO IN ORDER TO, TO GET TO AUGUST AND THEN GET TO NOVEMBER, IT HAS TO START TODAY.
UM, AND I, THAT'S WHY I'M IN FAVOR OF THE MOTION.
COUPLE THINGS, ONE THING I'M GONNA ASK OUR CITY CLERK CONCERNING THE, UH, TIMELINE.
UM, SO TO PUT THIS ON THE BALLOT, I DO NEED TO HAVE MY INFORMATION TO THE REGISTRAR BY THE MIDDLE OF JULY, NOT AUGUST.
AUGUST IS THEIR DEAD LIKE DROP DEAD DEADLINE.
I HAVE TO HAVE IT TO THEM BY JULY, MID-JULY TO GET THIS ON OUR JUNE 16TH MEETING, WHICH WOULD BE THE LAST ONE BEFORE YOUR BREAK.
I WOULD NEED THE STAFF REPORT BY MAY 26TH.
THE OTHER THING I WANNA REMIND COUNSEL IS THAT THERE IS AN ADDITIONAL FEE FOR THIS.
SO I'VE BUDGETED $125,000 FOR OUR CURRENT ELECTION, WHICH IS FOR THE THREE SEATS TO ADD THIS ITEM, IT WOULD BE AN ADDITIONAL 75,000 AT, AT MINIMUM.
AND THEN ALSO, UM, ONCE THIS IS PUT ON THE BALLOT, THE COUNCIL CAN'T TALK ABOUT IT ANYMORE.
SO THAT, LET ME ALSO ASK A QUESTION.
DOES TO PUT IT ON THE BALLOT, DOES THAT HAVE TO BE DONE AT A REGULAR MEETING OR CAN THAT BE DONE AT A SPECIAL MEETING? IT NEEDS TO BE DONE AT A REGULAR MEETING.
SO THAT LIMITS US TO JUNE 16TH.
[01:45:01]
JUNE 16TH.WE HAVE OUR WORK CUT OUT FIRST.
SO DOES THAT ALIGN WITH STAFF? DOES IS, IS ALL OF THIS OUTREACH THAT WE'RE TALKING ABOUT IS GETTING THE INFORMATION TO SHELLY BY, UH, MAY.
UM, IS THAT FEASIBLE? SO THE WORKING GROUP THAT WE'VE ESTABLISHED INTERNALLY AT THE CITY HAS DISCUSSED THE TIGHT TIMELINE.
IT'S OBVIOUSLY NOT IDEAL, BUT IT CAN BE ACHIEVED.
UM, THE REASON ALSO STAFF, UH, HASN'T DONE MUCH OUTREACH IS BECAUSE WE DIDN'T HAVE THE STUDY.
WE DIDN'T HAVE ANY DIRECTION FROM COUNCIL, WE DIDN'T HAVE ANYTHING.
SO, WELL NOW IT WOULD BE, NOW WE DO, I'VE PLANTED SEEDS HERE AND THERE, UM, THIS MORNING I MET WITH SOUTH COUNTY EDC, LET 'EM KNOW, HEY, WE'RE GONNA HAVE SOMETHING COMING FORWARD TONIGHT.
CAN WE DISCUSS IT AT ONE OF YOUR REGULARLY SCHEDULED MEETINGS? AND THEY SAID, MOST DEFINITELY.
BUT THAT WON'T EVEN HAPPEN UNTIL THE FIRST TUESDAY OF MAY BECAUSE THEY'RE NOT HAVING A WELL, YEAH, BECAUSE ALREADY HAD THEIR APRIL MEETING.
UM, AND THEN WITH, UH, THE CHAMBER, I'VE ALREADY LET THEIR EXECUTIVE DIRECTOR KNOW THAT, YOU KNOW, WE COULD PRESENT SOMETHING THERE.
MORE THAN LIKELY THEY WOULD WANT TO DO IT AT THEIR COMMUNITY OR THEIR ECONOMIC DEVELOPMENT COMMITTEE, WHICH WOULD BE THE FIRST WEEK OF, OF MAY AS WELL.
SO, UH, TO THE CITY CLERK'S POINT, MORE THAN LIKELY WE'RE GONNA BE A LITTLE FLUID IN THE PROCESS BECAUSE WE NEED TO HAVE STAFF REPORTS IN AT A CERTAIN TIME.
WE MAY NOT HAVE ALL THE INFORMATION ADEQUATELY PREPARED FOR SAID STAFF REPORT, BUT IT'LL ALL HAPPEN KIND OF FLUID, AND WE'RE ALL JUST GONNA HAVE TO KEEP GOING WITH THE, WITH THE, WITH THE SPEED AT WHICH THIS IS ALL MOVING.
SO, UM, THANK YOU MARTHA SIGN.
I, I JUST WANNA ADD, UM, THAT THAT IS ALL, YOU KNOW, PROGRESS WE'RE MAKING AND THAT'S SIX WEEKS BETWEEN NOW AND THE DEADLINE FOR THE, THE STAFF REPORT AND THE INFORMATION THAT WOULD GO FOR THE, THE JUNE 16TH MEETING.
UM, I DO WANNA REASSURE YOU THAT WE HAVE A LOT OF THESE THINGS ALREADY IN MOTION.
WE HAVE, UM, COMMUNITY, YOU KNOW, PUBLIC OUTREACH, UH, FIRMS THAT ARE, UH, BEING VETTED ALREADY AS PART OF OUR R-F-P-R-Q PROCESS FOR ON-CALL SERVICES.
WE HAVE A COUPLE OF VENDORS ALREADY THAT WE'RE GETTING PROPOSALS ON SHOULD WE GET YOUR AUTHORIZATION OR DIRECTION TO MOVE FORWARD.
SO I DO WANNA REASSURE YOU THAT A LOT OF THESE THINGS ARE ALREADY IN MOTION.
PEDRO TALKED ABOUT THE OUTREACH TO THE BUSINESS COMMUNITY ALREADY GETTING THAT LINED UP.
UM, SO WHILE IT WILL BE TIGHT, I DO WANNA REASSURE YOU THAT WE HAVE BEEN DILIGENTLY WORKING ON THIS AND HAVE ALL THE PIECES IN, IN PLAY THAT WILL HOPEFULLY FALL INTO PLACE WITH YOUR THANK YOU MARTHA, FOR CLARIFICATION.
HOW MANY VOTES ARE NEEDED IN ORDER FOR THIS ITEM TO MOVE FORWARD? UH, THIS EVENING? YOU ONLY NEED A MAJORITY THREE.
UH, BUT FOR IT TO BE PLACED ON THE BALLOT, YOU NEED FOUR.
THANK YOU FOR THE CLARIFICATION.
UM, LET ME JUST SAY THAT, YEAH, THERE'S STILL A LOT OF QUESTIONS ON THIS AND YOU KNOW, WITH THIS, AND I UNDERSTAND, I MEAN, IT'S TAKEN THIS AMOUNT OF TIME TO DO THE STUDY AND, AND DO ALL THE WORK.
IT IT DOES IT, YOU KNOW, WE JUST DON'T VOTE ON IT AND SAY, OKAY, BRING IT BACK IN TWO WEEKS.
IT JUST, IT JUST DOESN'T HAPPEN.
SO IT'S TAKEN THIS LONG TO GET, GET UP HERE TO THIS POINT.
UM, AND WE ARE UP AGAINST A QUITE, UH, A VERY TIGHT TIMELINE TO TRY TO THINK ABOUT NOVEMBER BALLOT.
THE QUESTION IS, WITHOUT WE STILL GOT MORE INFORMATION TO COME TO US, WE, AND, AND THE INPUT FROM THE PUBLIC AND FROM THE BUSINESS COMMUNITY, EVERYTHING ELSE TO FIND OUT, IS THIS SOMETHING THAT'S WORTHWHILE TO EVEN MOVE AHEAD WITH THAT DECISION WOULD NOT BE MADE TONIGHT.
WE'RE JUST SAYING LET'S TAKE, LET'S CONTINUE THE LOOK AT IT AND THEN, THEN WE WILL BE COMING BACK TO, TO SEE IS THIS SOMETHING THAT IS WORTHWHILE? IS IT IS SOMETHING THAT HAS ENOUGH CREDIBILITY? UH, TWO THINGS.
IS IT BEEN THOUGHT THROUGH ENOUGH TO MAKE GOOD SENSE? AND THEN DOES IT HAVE A CREDIBILITY TO GO TO THE VOTE? AND THOSE ARE DECISIONS YET TO BE MADE.
SO I DON'T, YOU KNOW, I'M JUST GONNA SAY, I DON'T KNOW IF I'M FOR OR AGAINST THIS AT THIS STAGE AS FAR AS GOING THE BALLOT BECAUSE WE DON'T HAVE THE INFORMATION YET.
AND I DON'T THINK ANY OF US SHOULD RUN TO THAT, THAT JUMP AT THIS POINT, BECAUSE THAT WOULD BE KIND OF FOOLISH.
BUT I DO THINK WE SHOULD MOVE AHEAD AND TO CONTINUE TAKING A LOOK AT THIS.
UM, MAY I HAVE A SUBSTITUTE MOTION? YOU CAN MAKE A SUBSTITUTE MOTION.
I HAVE TO ASK YOUR PERMISSION.
I WOULD LIKE TO MOVE TO RE UH, COME BACK.
STAFF WILL COME BACK WITH A COMPARISON BETWEEN MODEL TWO AND THREE.
UM, WITH REGARDS TO THE GROSS RECEIPTS
[01:50:01]
RATE.UM, MAY I, UH, COUNCILOR, MEMBER YAMANI, I'M OPEN TO AMENDING MY MOTION DEPENDING ON, I'D LIKE SOME STAFF FEEDBACK ON THAT, BUT IF WE CAN INCLUDE THAT LIKE AN EXPLORATION OF, UH, MODEL TWO BECAUSE, AND TO ME, FOR THE PUBLIC OUTREACH PROCESS ANYWAY, WITH THE PUBLIC OUTREACH PART, JUST SO I'M CLEAR, STAFF IS AT LEAST PRESENTING THE OTHER OPTIONS AS UH, OPTION MODEL ONE AND TWO, CORRECT? LIKE, SO WE'RE KIND OF PRESENTING IT TO THE PUBLIC.
THIS IS THE FRAMEWORK, THIS IS OUR, THE, THE CONCEPT THAT WE'RE STUDYING THE MOST.
AND THESE ARE TWO ALTERNATIVES, IS THAT CORRECT? UM, WELL, IT JUST DEPENDS ON WHAT THE COUNCIL WANTS, BUT THAT'S WHAT I WAS GONNA ASK ALSO FOR A POINT OF CLARIFICATION IS, IS THE COUNCIL SEEKING FOR US TO HAVE THE NEXT MEETING, BE THE MEETING WHERE WE PRESENT BALLOT LANGUAGE AND ALL THAT? OR ARE YOU JUST SEEKING A NEXT MEETING FOR JUST PURE WORKSHOP DISCUSSION? BECAUSE THAT'S A BIG DIFFERENCE.
SO FOR ME, I THINK IT'S THE, THE PUBLIC WORKSHOP DISCUSSION, NOT THE BALLOT LANGUAGE.
I FEEL LIKE THE BALLOT LANGUAGE, MAYBE WE SHOULD TENTATIVELY PUT THAT AT EITHER THE, THAT'S FIRST OR SECOND JUNE.
OH, IT'S JUNE IS THE SOONEST FOR THAT.
WELL, WELL THAT, THAT IF WE WOULD BE MAKING THAT DECISION IN JUNE, BUT I'M, I'M JUST, UH, CITY ATTORNEY.
I'M JUST TALKING ABOUT FOR IN TERMS OF OUR TIMING, LIKE WHAT THE ORDER AND WHAT WE REALISTICALLY, WHAT WE, WHAT WE CAN DO AND WHAT WE SHOULD DO AS, AS SOON AS WE CAN DO IT.
BUT UNTIL WE ACTUALLY HAVE A REAL DIRECTION FROM THE COUNCIL PUTTING TOGETHER THE BALLOT LANGUAGE TO ME WOULD BE, UM, PREMATURE, INEFFICIENT AND COOL BECAUSE WE GOTTA MAKE SURE IT MEETS CERTAIN LEGAL AND FACTUAL REQUIREMENTS.
I KNOW WE CAN DO THAT IN SHORT ORDER, BUT I WOULD THINK YOU'D WANNA LOCK DOWN WHAT, IF ANYTHING, THE COUNCIL'S GONNA DO TO MOVE FORWARD WITH THIS CHAIR.
SO THEN I WOULD LIKE, OH YEAH.
SO ARE YOU, WOULD YOU BE OKAY WITH ME AMEND MY LANGUAGE TO INCLUDE THE COUNCIL MEMBER MODEL? LEMME FINISH THIS CONVERSATION.
OR JUST, I UNDERSTAND WHAT HE'S SAYING, MAYOR, BUT I DON'T WANNA GO TO THE BUSINESS COMMUNITY AND SHOW TO THEIR THROATS.
WELL, SO WE CAN, WELL, SO WE CAN SAY THIS IS WHAT WE'RE RECOMMENDING AND THEN THESE ARE THE OTHER OPTIONS.
ARE YOU OKAY WITH THAT? AND WE CAN DIRECT STAFF TO ALSO LOOK AT, UH, OPTION TWO, BUT I JUST, FOR ME, DON'T WANT TO SPEND THAT MUCH RESOURCES ON THAT.
LIKE, I MEAN, I DON'T KNOW HOW TO, IF I CAN UNDERSTAND THE MAIN DIFFERENCE BETWEEN THREE AND TWO IS THAT TWO JUST PUTS A FLAT RATE ON ALL CLASSIFICATIONS.
AND, UM, JUST TO KIND OF MEET IN THE MIDDLE BETWEEN COUNCIL MEMBER BUSH AND COUNCIL MEMBER YAMANI, I THINK WE CAN PROCEED WITH, UH, THE ORIGINAL MOTION, BUT JUST HAVING AN AMENDMENT TO IT TO INCLUDE MODEL TWO WHEN WE DO OUR PUBLIC OUTREACH AND OUR PUBLIC POLLING, AND STILL COME BACK WITH THAT WORKSHOP.
OR ESSENTIALLY FOR THE LACK OF A BETTER DESCRIPTION TO OUR NEXT COUNCIL MEETING TO DISCUSS MODEL TWO AND MODEL THREE AND THE RESULTS OF THE PUBLIC OUTREACH AND THE PUBLIC POLLING WITH MODEL TWO AND MODEL THREE.
DOES THAT MEET YOUR NEEDS MEMBER IMANI? I, I WOULD LIKE FIRST SO THE BOTH OF'EM WOULD BE LOOKED AT.
I THINK IT'S A FRIENDLY APPROACH.
SO I THINK TO OUR BUSINESS COMMUNITY.
SO TO, SO WOULD YOU ACCEPT THAT AS AN AMENDMENT? SO I ACCEPT THAT AS AN AMENDMENT TO THE MOTION.
IF I THINK THE SECONDER HAS TO THOUGH.
UH, SO WE NEED TO PUT THE, WE HAD THE MOTION AND THE SECOND WE NEED TO PUT THOSE IN.
SO AS WE UNDERSTAND IT, UH, WE WOULD BE ABLE BE PUR PURSUING BOTH MODEL TWO AND THREE AS FAR AS FOR PRESENTATION COMING BACK, UH, AFTER MAKING OUTREACH, UH, BOTH, UH, BUSINESS, COMMUNITY, WHOEVER, WHAT THE DIFFERENT ASPECTS OF THAT AND, UH, UH, THE PUBLIC AND ANY KIND OF PUBLIC, ANY KINDA SURVEYS OR ANYTHING ELSE YOU GUYS ARE GONNA DO TO, TO GIVE US SOME INPUT ON THIS THING AND BRINGING THAT BACK.
AND THEN WE WOULD GIVE FINAL DIRECTION WHAT TO MOVE AHEAD WITH TO COME BACK WITH A MORE FINAL BALLOT LANGUAGE OF IF WE DECIDE TO MOVE FORWARD AT THAT TIME.
YEAH, BECAUSE YOU GUYS MIGHT COME BACK AFTER TALKING TO EVERYONE AND SAY, EVERY EVERYONE STARTED THROWING ROCKS AT US AND NOBODY LIKES IT.
YOU KNOW, THAT, THAT MIGHT TELL US THAT WE MIGHT NOT WANT TO MOVE AT ANY FARTHER.
WE'LL, OR TOO, OR MAYBE OPTION, OPTION TWO OR EVERYBODY LOVES IT, LET'S GO WITH IT.
AT THE NEXT MEETING, WE FOR SURE WOULD NEED DIRECTION ON WHAT MODEL AND WHAT BALLOT LANGUAGE TO PURSUE BECAUSE THAT NEEDS TO BE DONE IMMEDIATELY.
I, AND I WOULD JUST, UH, UM, ON THE, ON THE WORKSHOP, UH, WHEN I WAS TALKING ABOUT, UM, I'M NOT TRYING TO MAKE, UH, CHANGES TO THE, UM, EMOTION, BUT HOW I VIEW THE WORKSHOP, UH, YEAH, I'M FINE WITH THE WORKSHOP HERE, BUT
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THE MAIN, LIKE HAVING A MAIN WORKSHOP, I THINK WE SHOULD GO OUT TO THE COMMUNITY.LIKE I'D RATHER UM, HAVE LIKE HAVE A WORKSHOP AT THE CHAMBER AT ANOTHER VENUE WHERE IT'S NOT, I DON'T KNOW, I JUST DON'T KNOW THAT THIS IS LIKE THE BEST, THIS DAIS IS THE BEST LIKE WORKSHOP TYPE OF VENUE, YOU KNOW WHAT I MEAN? LIKE, IT, IT JUST DOESN'T SOLICIT.
LIKE, WELL, UM, I, I DIDN'T MEAN LIKE I'M FINE WITH THE WORKSHOP HERE, BUT THE MAIN ONE THAT I WAS TALKING ABOUT WITH THE CHAMBER, LIKE I WOULD RATHER US BE OUT THERE.
I DON'T THINK IT WOULD INVOLVE.
THERE'S TWO, TWO THINGS THAT WE'RE TALKING ABOUT.
PUBLIC OUTREACH AND THEN, WHICH IS THE SUBSEQUENT COUNCIL MEETING THAT'LL INVOLVE THE PUBLIC DEBATE.
UM, BEFORE WE VOTE, I JUST WANTED TO MAKE SURE THAT, UM, THE NUMBERS ARE TIGHTENED SO THEN IT'S MORE REALISTIC INSTEAD OF A ROUND NUMBER.
AND I BELIEVE I LIKE THE SUGGESTION OF THE MAYOR TO, UM, FRACTIONIZE IT OR PERCENTAGE.
UM, SO THEN IT'LL BE MORE, UM, IT'S EASIER TO UNDERSTAND.
WHAT NUMBERS ARE WE TALKING AT ABOUT EXACTLY? JUST FOR OUR POINT OF CLARIFICATION, YOUR MODEL TWO AND THREE, YOU HAVE NUMBERS THERE THAT YOU HAVE, UM, INDICATED AND SOME OF THEM ARE NOT BALANCING.
AND COULD I MAKE A SUGGESTION ON THAT? 'CAUSE I THINK IT'S CONFUSING.
'CAUSE WHEN YOU'RE TALKING ABOUT DOLLARS PER THOUSAND, UM, PEOPLE DEAL WITH PERCENTAGES.
SO IF INSTEAD OF SAYING LIKE $2 PER THOUSAND, IF YOU SAY 20 CENTS PER HUNDRED, THAT'S THE REALITY.
YOU KNOW, BECAUSE THAT'S WHAT IT IS.
IT'S 20 CENTS PER HUNDRED IS THE SAME THING AS $2 PER THOUSAND.
BUT THAT SHOWS YOU, BECAUSE OTHERWISE PEOPLE WILL MIX UP $2 PER THOUSAND AS BEING 2%.
I'M SORRY, THAT'S JUST THE WAY IT CLICKS IN PEOPLE'S MINDS.
THAT'S JUST LIKE OUR 1 CENT AND 1%, RIGHT? YES.
AND SO, AND SO I THINK IF YOU KEEP IT PER HUNDRED INSTEAD OF PER THOUSAND, UH, IT GETS YOU CLOSER TO BEING PERCENTAGE, BUT YET YOU STILL GIVE 'EM A DOLLAR AMOUNT.
BUT I'M JUST TRYING, I AGREE WITH THAT.
I THINK THAT'S, I'M JUST TRYING TO THINK OF HOW PEOPLE PERCEIVE THINGS.
SO IT'S MORE CONCEPTUAL AND YEAH.
ALRIGHT, UH, WITH THAT WE HAVE UM, WE DO HAVE A MOTION AND A SECOND.
THIS IS JUST TO MOVE THIS FORWARD.
THIS IS NOT A, YOU KNOW, ACCEPTING ANYTHING, BUT AT THIS POINT COMING BACK AND THEN WE'LL SEE HOW THIS THING GETS MASSAGED AND WHERE IT GOES.
AND, UH, VOTING WE ARE JUST CAME UP.
ALRIGHT, SO, UM, SO ANYWAY, WITH THAT, UH, WE ARE, WE DON'T HAVE ANYTHING ELSE.
WE DON'T HAVE NOTHING OUTTA A CLOSED SESSION, DO WE? NO, SIR.
SINCE WE DIDN'T HAVE CLOSED SESSION.
SO THEREFORE, UH, WE ARE ADJOURNED.