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WELL, GOOD EVENING, LADIES AND GENTLEMEN, AND WELCOME TO OUR JULY 19TH CITY COUNCIL FIRE PROTECTION DISTRICT MEETINGS.
WE'RE GLAD YOU'RE HERE THIS EVENING, I'D LIKE TO START WITH THE PLEDGE OF ALLEGIANCE, AND I'D LIKE TO ASK OUR COUNCILWOMAN ASHLEY STICKLER TO LEAD US IN THE PLEDGE TO OUR FLAG.
PLEASE JOIN US IN THE PLEASURE OF ALLEGIANCE.
AND PLEASURE ALL UNITED STATES.
UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH STANDS, ONE NATION UNDER THAT INDIVIDUAL WITH LIBERTY AND JUSTICE FOR ALL.
MAYOR PRO TEM LYNN KENNEDY, PRESENT AND COUNCIL MEMBERS RYAN HUTCHINSON.
CHRISTINE SCOTT PRESENT AND ASHLEY STICKLER PRESENT.
MADAM CLERK, ARE THERE ANY MODIFICATIONS OR CHANGES TO THIS EVENING'S AGENDA? NO, THERE ARE NO AMENDMENTS TO THE AGENDA.
WE'LL NOW MOVE UNDER, UH, ANNOUNCEMENTS AND PRESENTATIONS.
UH, THAT'S A FIRST FOR IN A LONG TIME, BUT WE HAVE NO ANNOUNCEMENTS AND PRESENTATIONS, SO WE'LL MOVE RIGHT ON INTO PUBLIC COMMUNICATIONS.
UM, THIS IS A TIME AND PLACE FOR THE GENERAL PUBLIC TO ADDRESS THE FIRE DISTRICT BOARD OF DIRECTORS AND CITY COUNCIL ON ANY ITEM LISTED OR UNLISTED ON THE AGENDA.
COMMENTS OR I WILL START BACK AGAIN.
PLEASE NOTE, AND I KNOW IT MAY BE OF ON YOUR AGENDA, AND THERE WAS SOME INFORMATION.
THE CITY COUNCIL RECENTLY CHANGED THE PUBLIC COMMUNIC COMMENT TIME FROM FIVE MINUTES TO THREE MINUTES PER INDIVIDUAL.
WE NOW HAVE IN PLACE RULES OF DECORUM TO ENSURE THIS IS A BUSINESS MEETING AND IT IS CONDUCTED IN ACCORDANCE WITH STATE LAW.
FOR MORE INFORMATION, YOU CAN REFER TO THE CITY COUNCIL RULES OF DECORUM AND ORDER RESOLUTION NUMBER 2023 DASH 86 LOCATED IN THE BACK OF THE COUNCIL CHAMBERS.
COMMENTS ARE LIMITED TO THREE MINUTES PER INDIVIDUAL, AND THE COMMUNICATION PUBLIC, UH, COMMUNICATION PORTION WILL NOT EXCEED ONE HOUR BEFORE THE COMMENCEMENT OF OUR BUSINESS MEETING.
AND WE HAVE, WE'RE NOT GONNA HAVE TO WORRY ABOUT THAT BECAUSE WE HAVE TWO SPEAKERS.
OUR FIRST SPEAKER IS BILL KAUFMAN, FOLLOWED BY SIMA YA.
AND YOU'LL, I I'M GONNA HAVE TO LET YOU PRONOUNCE YOUR NAME, BUT THE MICROPHONE, MA'AM, WHEN IT'S YOUR TURN.
MAYOR, CITY COUNCIL, I PASSED OUT A REVISED, UM, ECONOMIC STUDY ON RANCHO.
UNFORTUNATELY, ALL OF YOU DIDN'T GET IT, BUT THE ONE I INITIALLY GAVE YOU SHOWED A REVENUE, UH, OF $2 MILLION TAX REVENUE.
UM, THE STATE SAYS THEIR GUIDELINES ARE USUALLY ONE DISPENSARY FOR EVERY 20,000 POPULATION.
I SUSPECT THAT THAT'S TOO MANY.
UH, CORONA, UH, GAVE OUT 12, AND I IMPLORED THEM NOT TO DO IT, BUT THEY DID, AND SIX OF THEM COULDN'T OPEN.
IF YOU PUT SO MUCH OF ANYTHING, IT SPREADS
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IT OUT TO START WITH, AND YOU HAVE A LOT OF 'EM THAT AREN'T SUCCESSFUL.BUT IN ANY EVENT, UM, ALSO IN, IN, IN THAT PACKET, WHEN YOU SEE IT, IT'LL BE A HISTORY OF THE INDIVIDUALS THAT WILL BE RESPONSIBLE, UH, FOR THE DISPENSARY.
UH, IT ALSO WILL SHOW THAT WE'VE GONE THROUGH EX I'M GOING TO BLOW MY TIME EXTENSIVE, UM, RESEARCH AS FAR AS WHAT THE CITY REQUIRES AND WHAT THE CITY WOULD WANT AS FAR AS LOCATIONS AND SO FORTH.
AND I'VE HAD A, A, A, A MEMBER OF COLDWELL BANKER WORK WITH ME, UM, WITH CORONA.
AND WE JUST FINISHED WITH MONTCLAIR AND RANCHO.
AND I AM SUGGESTING, AND YOU'LL SEE IN THE, THE PAST HAVE FOUR LOCATIONS.
ONE IS RIGHT NEXT TO FONTANA, ACTUALLY, TWO WHICH FONTANA HEADS DO NOT HAVE ANY DISPENSARIES.
ONTARIO DOESN'T TO YOUR OTHER SIDE.
UPLAND CAN'T HAVE THEM BECAUSE THEY VOTED AGAINST THEM.
AND I CAN SEE WITH THE POPULATION OF, UH, OF RANCHO, THESE DISPENSARIES SHOULD NOT BE PLACED IN THIS MAY WAS MADE A MISTAKE IN CORONA, LIKE BACK IN SOME INDUSTRIAL AREA.
THEY SHOULD BE AT THE FOREFRONT.
UM, THE ONE THAT WE JUST FINISHED IN, UH, PASADENA, IT WAS $600,000 WENT IN FOR THE RENOVATIONS, THEIR FIRST CLASS AND SO FORTH.
SO I WOULD IMPLORE WHENEVER YOU FOLKS HAVE A, A ORDINANCE THAT WILL ALLOW COMMERCIAL CANNABIS THAT, UM, THE, THE LOCATIONS THAT THEY, THAT THEY'RE ALLOWED TO BE IN.
I MEAN, CORONA WENT TO EXTENSIVE PUT IT HERE AND THERE AND EVERYWHERE AND EVERYTHING.
THEY WERE ALL IN THE BEHIND INDUSTRIAL BUILDINGS.
I'D IMPLORE YOU TO LOOK AT SOME OF THE OTHER DISPENSARIES THAT ARE OUT THERE AND LOOK AT THEY'RE FIRST CLASS.
UM, AND THEY SHOULD NOT BE HIDDEN BACK IN, IN INDUSTRIAL AREA.
BUT SINCE YOU DON'T, YOU, YOU HAVEN'T, I KNOW THAT YOU'VE READ IT AND I'VE PUT THE, AN EXTENSIVE BACKGROUND ON THE TWO PRINCIPLES THAT WOULD BE, UH, ASKING, UH, RANCHO TO IT.
IF YOU PRONOUNCE YOUR NAME FOR US, YOU CAN MOVE THE MICROPHONE DOWN JUST A LITTLE BIT, SO, OKAY.
UH, SO RESPECTED MAYOR AND COUNCIL MEMBERS.
THIS IS MY SECOND TIME TO TALK IN, UH, COUNCIL.
YESTERDAY I SPOKE IN, UH, ONTARIO ONE.
SO I'M HERE TO INVITE YOU ALL, EVEN EVERYONE HERE WE ARE HAVING A BIG CELEBRATION, A BIG EVENT IN ON, UH, AUGUST 5TH IN ONTARIO CONVENTION CENTER.
AND THE POSTCARDS OF IN, UH, OF THE EVENT HAS BEEN, UH, PLACED WITH YOU GUYS, AND WE'LL BE SENDING THE EMAIL.
SO THE FI BELONG, I WORK FOR THIS, UH, NONPROFIT ORGANIZATION, WHICH IS THE LARGEST VOLUNTEER BASED ORGANIZATION IN THE WORLD.
AND THE FOUNDER, SHISHI SHANKER, HE'S THE GLOBAL, UH, RIVER SPIRITUAL AND HUMANITARIAN LEADER WHO HAS INSPIRED A WORLDWIDE MOVEMENT OF A STRESS-FREE AND VIOLENCE FREE SOCIETY.
AND HIS VISION IS TO PUT A SMILE ON EVERYBODY'S FACE.
WE KNOW HOW MANY NEGATIVITY, ANGER, AND AFTER THE COVID HAS GONE, RIGHT? SO WHAT IS HE'S DOING? HE'S HOLDING A FOURTH WORLD CULTURAL FESTIVAL IN WASHINGTON, DC IN NATIONAL MALL, SEPTEMBER 29TH, 30TH AND OCTOBER 1ST.
AND THE MAYOR OF WASHINGTON HAS INVITED THE ENTIRE USA TO COME AND JOIN.
WE ARE EXPECTING 250,000 GUESTS WITH 150 COUNTRIES PARTICIPATING IN DANCE MUSIC, AND IT'S GOING TO BE HUGE, LIKE 25,000, UH, PEOPLE WILL BE PARTICIPATING.
AND HE'S TRAVELING ALL OVER THE USA HOLDING THIS EVENTS BECAUSE TO INVITE PERSONALLY, EVERYONE SO WE CAN MAKE A NOISE THAT THERE'S A PEACE, THERE'S JOY.
WE CAN CELEBRATE DIVERSITY AND BE ONE, LIKE ONE WORLD FAMILY.
AND UH, SO FAR THIS ORGANIZATION HAS TAUGHT, UH, LIKE WORKSHOPS WHERE MORE THAN HALF A BILLION PEOPLE HAVE BENEFITED, BENEFITED BY RELEASING THE STRESS, INCLUDING THE VETERANS IN UNITED STATES, INCLUDING THE, WE HAVE CLASSES IN 110 UNIVERSITIES, INCLUDING STANFORD, YALE, HARVARD, AND STUDY SHOWS, YOU KNOW, THROUGH THE BREADTH ONE CAN RELEASE THE STRESS.
SO I'VE BEEN ALSO HOLDING THE BREATH WORKSHOP IN RANCHO.
I'VE BEEN RESIDENT FOR RANCHO FOR LAST 17 YEARS.
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I TAKE PRIDE BECAUSE, YOU KNOW, IF YOU CAN BRING THAT PEACE AND YOU KNOW THE CALMNESS BY JUST USE OF THE BREATH, WHY NOT MEDICINES CAN BE ON SITE, RIGHT? SO THAT'S THE MESSAGE AND THAT'S THE GOAL.SO I, I'VE ALREADY SENT THE EMAIL OF INVITE TO JASMINE, SO SHE'LL BE FORWARDING TO YOU ALL.
AND I THINK WE BELIEVE THAT MY ORGANIZATION ALREADY SENT THE, UH, EMAIL INVITE ON 18TH TO DIRECTLY TO MAYOR ALSO.
THERE ARE POSTCARDS OUTSIDE, UH, ON THE TABLE.
EVERYBODY CAN PICK ONE AND DO COME.
WE NEED TO MAKE THIS WORLD A BETTER PLACE.
OKAY, THAT CONCLUDES OUR PUBLIC COMMUNICATIONS PORTION OF THIS EVENING'S AGENDA.
WE'LL NOW MOVE ON TO OUR CONSENT CALENDAR.
DO I HAVE A MOTION TO APPROVE THIS EVENING'S CONSENT CALENDAR, MR. MAYOR, I NEED TO ABSTAIN FROM ITEM D THREE DUE TO POSSIBLE CONFLICT OF INTEREST.
THE ABSTENTION IS NOTED ON ITEM D THREE BY COUNCILWOMAN SCOTT, IS THERE A MOTION TO APPROVE MOVE FOR APPROVAL? I SECOND PLEASE VOTE.
MOTION CARRIES UNANIMOUSLY WITH BOARD MEMBER SCOTT ABSTAINING ON ITEM D THREE.
THERE ARE NO CONSENT ORDINANCES OR SECOND READINGS FOR SECOND READINGS THIS EVENING.
WE DO HAVE TWO ADMINISTRATIVE HEARING ITEMS, SO I WOULD LIKE TO CALL, UH, THE FIRST ONE IS CONSIDERATION OF FIRST READING OF AN ORDINANCE NUMBER 10 19 TO EMBED BY TITLE AND WAIVE FURTHER READINGS.
REPEALING CHAPTER 10.76 OF THE RANCHO CUCAMONGA MUNICIPAL CODE, DISCONTINUING THE CITY'S POLICE TOW ROTATION PROGRAM AND MAKING A DETERMINATION THAT THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.
AND I'LL TURN THIS OVER TO MR. GILSON THIS TIME.
THANK YOU MR. MAYOR, MEMBERS OF THE CITY COUNCIL.
SO, UH, THIS IS A SHORT ITEM AND, UH, UM, OUR ASSISTANT TO THE CITY MANAGER, MIKE PALMER, WILL PROVIDE YOU A STAFF REPORT.
UM, BUT WE ARE JUST DISCONTINUING THE POLICE TOW ROTATION PROGRAM, UM, THAT'LL BE TRANSITIONING, UM, INTO A RESPONSIBILITY THAT THE SHERIFF'S DEPARTMENT HANDLES THROUGH THEIR EXISTING, UM, SHERIFF'S DEPARTMENT TOW ROTATION.
SO, MIKE, SO, SO GOOD EVENING MAYOR.
AS BRIEFLY MENTIONED, THE ITEM BEFORE YOU IS THE CONSIDERATION OF AN ORDINANCE FOR APPEALING CHAPTER 10.76 OF THE CITY'S MUNICIPAL CODE THAT WOULD DISCONTINUE THE CITY'S POLICE, UH, TOW ROTATION PROGRAM BACK IN APRIL, 2017.
THE CITY, BY VIRTUE OF ORDINANCE 9 0 5, IMPLEMENTED ITS OWN, UH, PROGRAM TAKING OVER FROM THE PREVIOUS PROGRAM THAT WAS IMPLEMENTED BY THE SAN BERNARDINO COUNTY SHERIFF'S DEPARTMENT.
UH, RECENTLY, AS A MATTER OF ROUTINE, THE CITY CONDUCTED A REVIEW OF THE CURRENT POLICE TOW ROTATION PROGRAM AND FOUND THAT THE ADMINISTRATIVE BURDEN TO RUN IT WAS NOT PROPORTIONATE WITH THE COSTS.
FURTHER AROUND THAT SAME TIME, THE SHERIFF'S DEPARTMENT ACTING THROUGH THE RANCHO CUCAMONGA, UH, STATION INDICATED THAT IT'S READY AND WILLING TO FACILITATE THE PROGRAM.
ALSO, MINOR SAVINGS IS EXPECTED TO BE REALIZED OVERALL COST FOR THE SHERIFF'S CONTRACT AND THE STAFFING WILL NOT CHANGE.
UH, SO IN ADDITION TO CONSIDERING THE REPEAL OF CHAPTER 10.76 OF THE CITY'S MUNICIPAL CODE COUNCIL ALSO NEED TO MAKE A DETERMINATION THAT THE ORDINANCE BEFORE YOU IS EXEMPT FROM CQA AS IT RESULTS IN NO POTENTIAL DEVELOPMENT THAT COULD HAVE AN IMPACT, ENVIRONMENTAL IMPACT, AND THAT THE SAME NUMBER OF TOW TRUCK TRIPS WOULD OCCUR REGARDLESS OF WHO ADMINISTERS THE PROGRAM.
SO WITH THAT, THAT CONCLUDES MY, UH, REPORT, AND I'M AVAILABLE TO ANSWER ANY QUESTIONS.
ARE THERE ANY QUESTIONS OF MR. PALMER BEFORE WE OPEN THE ADMINISTRATIVE HEARING? OKAY.
ADMINISTRATIVE HEARING IS NOW OPEN.
IS THERE ANYONE HERE IN THE AUDIENCE THAT'S HERE TONIGHT TO SPEAK ON THIS MATTER? SEEING NONE, UH, PUBLIC HEARING IS NOW CLOSED, AND WE'LL BRING IT BACK TO THE COUNCIL FOR ANY OTHER COMMENT.
OTHERWISE, I'D ENTERTAIN A MOTION TO APPROVE STAFF'S RECOMMENDATION AND INTRODUCE FOR FIRST READING ORDINANCE NUMBER 10 19 TO BE READ BY TITLE ONLY AND WAIVE FURTHER READINGS.
MR. MAYOR, WE NEED THE READING OF THE ORDINANCE.
ORDINANCE, LET, LET US PAUSE FOR, TO ALLOW HER TO READ THE ORDINANCE BY TITLE ONLY.
ORDINANCE NUMBER 1 0 1 9, AN ORDINANCE OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA.
REPEALING CHAPTER 10.76 OF THE RANCHO CUCAMONGA MUNICIPAL CODE, DISCONTINUING THE CITY OF RANCHO CUCAMONGA POLICE TOW ROTATION PROGRAM AND MAKING A DETERMINATION THAT THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.
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THANK YOU.ITEM F TWO IS A PRELIMINARY REVIEW HEARING TO CONSIDER A PROPOSED MASTER PLAN APPLICATION FOR A MIXED USE DE DEVELOPMENT THAT WOULD INCLUDE SITE SPECIFIC DEVELOPMENT STANDARDS, INCLUDING A FLOOR AREA RATIO STANDARD LOWER THAN THE CURRENT STANDARD UNDER OUR DEVELOPMENT CODE THAT'S LOCATED AT 95 0 5 BASELINE ROAD.
THANK YOU, MR. THANK YOU, MR. MAYOR AND MEMBERS OF THE CITY COUNCIL.
SO THE COUNCIL WILL RECALL, UM, PREVIOUSLY, UM, THE CITY'S PROCESS INVOLVING MASTER PLANS, UM, WAS SUCH THAT IF AN APPLICANT DESIRED TO PURSUE A MASTER PLAN, REALLY NEITHER THE COUNCIL, UM, NOR THE PLANNING COMMISSION WAS AWARE OF EVEN THE FACT OF A MASTER PLAN UNTIL IT WAS ESSENTIALLY AT THE VERY END OF THE PROCESS AND READY TO GO ONTO THE PLANNING COMMISSION AGENDA AND ULTIMATELY THE CITY COUNCIL AGENDA FOR REVIEW.
SO, UM, THE, THE COUNCIL HAD DIRECTED US, UM, UH, A LITTLE OVER A YEAR AGO OR SO TO, TO CREATE A NEW HYBRID PROCESS THAT, UM, SOME AGENCIES HAVE, WHICH ALLOWS THE COUNCIL AN OPPORTUNITY TO GET AN EARLY LOOK AT A REQUEST FOR A MASTER PLAN.
THE CONCEPT WAS, UM, IN THEORY, A SIMPLE ONE IN EXECUTION, SLIGHTLY BIT MORE COMPLICATED.
UM, THE IDEA IS THAT YOU ARE NOT REVIEWING THE PROJECT.
SO WHAT YOU DO NOT HAVE IN FRONT OF YOU TONIGHT IS ALL THE DETAILS OF THE UNDERLYING PROJECT AND STUFF.
UM, A LOT OF THOSE AREN'T EVEN FINAL YET OR VETTED, HASN'T GONE THROUGH ENVIRONMENTAL.
UM, SO ANY QUESTIONS ABOUT PRODUCT TYPE AND ALL KINDS OF OTHER STUFF LIKE THAT, THAT YOU WOULD NORMALLY ASK ARCHITECTURE ARE, ARE IRRELEVANT AT THIS POINT.
WHAT IS IN FRONT OF YOU IS SIMPLY THE ONE PROGRAMMATIC ISSUE OF THE MASTER PLAN, AND THEY ARE REQUESTING A MASTER PLAN.
A MASTER PLAN IS A DEVICE, AND SEAN WILL TELL YOU THAT ALLOWS US TO COME UP WITH SITE SPECIFIC STANDARDS AND THEY'RE REQUESTING A MASTER PLAN.
THEY WANT A DEVIATION FROM, UM, SOME STAND APPLICABLE STANDARD FOR THE FLOOR AREA RATIO.
AND AGAIN, SEAN AND MATT CAN GO THROUGH THAT WITH YOU.
SO THAT IS THE ONLY ITEM IN FRONT OF YOU TONIGHT.
AND TO BE CLEAR, UM, IT IS ONLY FOR THE PURPOSE OF YOU PROVIDING FEEDBACK.
EVEN IF YOU COMPLETELY DISAGREED WITH IT, THE APPLICANT HAS A DUE PROCESS, RIGHT, TO PURSUE IT TO AN END AND A FINAL DECISION.
SO YOU'RE JUST HERE TO PROVIDE FEEDBACK.
AND ESSENTIALLY, I THINK THE EASIEST WAY TO THINK OF IT IS YOU'RE LIKE A CROSSING GUARD AND YOU'RE JUST GONNA EITHER SAY, STOP.
WE THINK YOU SHOULD CONSIDER A FEW THINGS BEFORE YOU GO FORWARD, OR YOU'RE GONNA SAY, HMM, OKAY, GO FORWARD AND KEEP WORKING ON IT.
UM, AND YOU'LL SEE IT AGAIN AT A LATER DATE, UM, MUCH FURTHER DOWN THE ROAD AFTER YOUR COMMISSION HAS REVIEWED IT IN THAT.
SO I JUST WANTED TO GIVE THE BACKGROUND SINCE THIS IS THE FIRST TIME WE HAVE BROUGHT SOMETHING TO YOU UNDER THIS NEW PROCESS.
SO WITH THAT, I'M GONNA TURN IT OVER TO MATT MARQUEZ, OUR PLANNING AND ECONOMIC DEVELOPMENT DIRECTOR, AND SEAN MCPHERSON ARE ACTING, UH, PRINCIPAL PLANNER.
AND THEY'LL GO THROUGH AND EXPLAIN IN MORE DETAIL THE MASTER PLAN AND WHAT FLOOR AREA RATIO MEANS AND WHAT THE, THE RECOMMENDATIONS IN THAT ARE.
SO GENTLEMEN, THANK YOU, CITY MANAGER.
MEMBERS OF THE COUNCIL, UH, MR. GILLSON PROVIDED A GREAT, UH, BACKGROUND INTRODUCTION, UH, TO THIS ITEM, UH, THIS EVENING.
SO, UH, FIRST AND FOREMOST, RECOMMENDATION OUTLINED IN IN YOUR STAFF REPORT, OR DETAILED IN YOUR STAFF REPORT, I SHOULD SAY, UH, OUTLINED HERE ON THIS SLIDE, ASKING THE COUNCIL TO CONSIDER, UH, POLICY IMPLICATIONS OF DEVELOPMENT OF A MASTER PLAN FOR A POTENTIAL PROJECT AT 95 0 5 BASELINE ROAD.
THAT WOULD INCLUDE, UM, A REDUCTION IN NON-RESIDENTIAL FLOOR AREA.
UM, AND THAT'S SOMETHING AGAIN, THAT WE'LL TALK ABOUT IN, IN GREATER DETAILS.
WE CONTINUE ON WITH THE CONVERSATION, ALSO, IN ESSENCE AUTHORIZING THE DEVELOPER TO PROCEED, UH, UNDERSTANDING THAT THE DEVELOPER, AS CITY MANAGER MENTIONED, HAS A RIGHT TO PROCEED.
BUT, UH, OUR ACTION OR, OR YOUR DISCUSSION, I SHOULD SAY THIS EVENING, IS IN NO WAY, SHAPE, OR FORM A GUARANTEE OF AN APPROVAL, A RECOMMENDATION OF APPROVAL, OR ANYTHING ALONG THOSE LINES.
IT'S SIMPLY, UH, TO GET SOME INPUT ON THE, UH, POLICY IMPLICATIONS, UH, OF THIS THAT'S IN FRONT OF YOU THIS EVENING.
SO LASTLY, DIRECT STAFF ALSO TO, UH, ANALYZE NON-RESIDENTIAL STANDARDS, UH, FOR MIXED USE PROJECTS AND CONSIDER A FUTURE, UH, CODE AMENDMENT.
UM, TO THAT EFFECT, UH, WE ARE SEEING, UH, A NUMBER OF, OF INTERESTED PARTIES, UH, THAT HAVE QUESTIONS OR SIMILAR QUESTIONS ABOUT THE APPLICATION, UH, OF OUR STANDARDS OR CERTAIN STANDARDS, I SHOULD SAY.
A BIT OF BACKGROUND INFORMATION.
UH, IN AUGUST OF 2021, UH, AS MENTIONED BY THE CITY MANAGER COUNCIL, ADOPTED A POLICY RELATED TO, UH, MASTER PLANS
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AND THE PROCESS THEREOF, UH, IN ESSENCE ALLOWING FOR APPLICANTS TO GET IN FRONT OF THE COUNCIL AT A MUCH EARLIER DATE THAN PREVIOUSLY THEY WERE ALLOWED TO DO.UM, OFTENTIMES THESE TYPES OF PROJECTS CAN TAKE A CONSIDERABLE AMOUNT OF TIME, AND THERE'S THOUSANDS UPON THOUSANDS OF DOLLARS SPENT ON THESE PROJECTS.
SO, UH, INSTEAD OF TAKING 18 MONTHS FOR AN APPLICANT TO GET BEFORE, UH, THE COUNCIL, THE POLICY WAS ADOPTED TO ALLOW FOR THEM TO COME AGAIN BEFORE THE COUNCIL, UH, MUCH EARLIER IN THE PROCESS.
AND THIS ISN'T SOMETHING THAT'S UNIQUE, UH, TO THIS CITY.
IN FACT, IN THE PREVIOUS CITY THAT I WORKED FOR BEFORE COMING HERE, WE, WE ADOPTED A SIMILAR, UH, POLICY.
SO THAT WAS AUGUST OF 2021 WHEN THE COUNCIL ADOPTED THAT POLICY.
AS YOU ALL KNOW, IN DECEMBER OF 2021, CITY UPDATED AND ADOPTED A GENERAL PLANNED, UH, UPDATE.
AND THAT WAS FOLLOWED BY A COMPREHENSIVE UPDATE TO THE DEVELOPMENT CODE IN MAY OF 2022.
IN MARCH OF THIS YEAR, UM, THE CITY RECEIVED A APPLICATION FOR COURTESY REVIEW FOR THE 95 0 5, UH, BASELINE PROJECT THAT'S SUBJECT TO THIS DISCUSSION, UH, THIS EVENING.
SO WHAT'S A MASTER PLAN? UH, IN SHORT, IT'S A TOOL WHICH ALLOWS A DEVELOPER TO ESTABLISH SITE SPECIFIC STANDARDS FOR PROJECT AREA, OR IN THIS CASE A PROJECT, UH, SITE.
SO THE PURPOSE IS TO ALLOW FOR A COMPREHENSIVE, UH, PLANNING EFFORT OR DEVELOPMENT OF A COMPREHENSIVE PLANNING EFFORT FOR A CERTAIN SUB AREA OF THE CITY, OR AGAIN, A SPECIFIC SITE.
AND OUR CODE ALLOWS FOR THAT TO TAKE PLACE IF A MASTER PLAN WOULD HELP ACCOMPLISH A, A NUMBER OF, OR ANY ONE OF THE OBJECTIVES THAT ARE SHOWN ON, ON THE SCREEN IN FRONT OF YOU.
SO IF, UH, DEVELOPMENT OF A MASTER PLAN WOULD, FOR EXAMPLE, PLAN AHEAD AND LOOK BEYOND THE LIMITS OF PARTICULAR, UH, PROPERTY TO SOLVE CIRCULATION, DRAINAGE, NEIGHBORHOOD COMPATIBILITY PROBLEMS OR ISSUES ALLOW FOR DEVELOPMENT OF A EXCEPTIONAL PROJECT DESIGN THAT COULDN'T BE BUILT UNDER AN EXISTING ZONE OR DUE TO CONSTRAINTS OF EXISTING DEVELOPMENT STANDARDS AND THINGS OF THAT NATURE.
AGAIN, ALL OF THOSE ARE, ARE OUTLINED IN, IN YOUR STAFF REPORT AND, AND IN FRONT OF YOU ON THIS, UH, SLIDE.
SO SOME OF THE FACTS RELATED TO, UH, POLICY ANALYSIS ASSOCIATED WITH THIS, UH, APPLICANT IS PROPOSING 50 UNITS FOR SALE UNITS LOCATED ON A, A PARCEL THAT MEASURES ROUGHLY 2.3 ACRES.
UM, THE ZONING FOR THIS PARTICULAR PARCEL IS NEIGHBORHOOD GENERAL THREE OR NNG THREE, AND IT'S IN OUR FORM-BASED, UH, ZONE OR IN A FORM-BASED ZONE.
THE NG THREE ZONE REQUIRES NON-RESIDENTIAL FLOOR AREA OR A NON-RESIDENTIAL FLOOR AREA RATIO STANDARD OF 0.4 TO 0.6, WHICH WOULD MEAN THAT 40 TO 60,000 SQUARE FEET OF NON-RESIDENTIAL AREA OF THE DEVELOPMENT ON THE 2.3 ACRE PARCEL, UH, WOULD AGAIN, HAVE TO BE NON-RESIDENTIAL, UH, SQUARE FOOTAGE OR, OR AREA.
UM, THE APPLICANT IN THIS REGARD HAS TALKED TO STAFF ABOUT A FLOOR AREA RATIO OR, UH, NON-RESIDENTIAL SQUARE FOOTAGE THAT WOULD BE MUCH LESS THAN WHAT THE CODE, UH, REQUIRES.
AGAIN, THE CODE REQUIRES 0.4 TO 0.6.
UH, THE APPLICANT IS PROPOSING 10 LIVE WORK UNITS THAT WOULD HAVE IN TOTAL 3000 SQUARE FEET OF NON-RESIDENTIAL, UH, FLOOR AREA, WHICH IS EQUAL TO 0.03 FAR.
UM, THE APPLICANT HAS THEREFORE REQUESTED OR IS SEEKING TO PURSUE A MASTER PLAN, UH, IN ORDER TO, TO ESTABLISH STANDARDS OR DEVELOP STANDARDS SPECIFIC TO DEVELOPMENT ON THAT SITE, WHICH WOULD INCLUDE A STANDARD RELATED TO NON-RESIDENTIAL FLOOR AREA OR THE REDUCTION THEREOF.
THE POLICY THAT WAS ADOPTED BY COUNSEL IN, IN 2021, UH, LISTS SOME ITEMS THAT COUNSEL COULD CONSIDER WHEN REVIEWING THESE APPLICATIONS.
UH, AT THIS PARTICULAR STAGE DURING THE PRELIMINARY REVIEW HEARING, UH, SOME OF THOSE, UH, ITEMS FOR CONSIDERATION ARE RELATED TO NEIGHBORHOOD IMPACTS, ECONOMIC DEVELOPMENT IMPACTS, AND THEN ALSO THE APPROPRIATENESS OF THE REQUEST FOR THE PARTICULAR SITE.
THE POLICY ALSO ASKS THAT STAFF LISTS SOME PROS AND CONS FOR COUNSEL AS PART OF THIS DISCUSSION, AND WE'VE LISTED THOSE IN THE STAFF REPORT, AND ALSO THOSE ARE SHOWN, UH, ON THE SCREEN IN FRONT OF YOU.
UH, THE PROJECT OR POTENTIAL PROJECT PROPOSES 54 SALE UNITS, UH, DUE TO THE SMALL SIZE OF THE, THE PARCEL REDUCING THE NON-RESIDENTIAL FLOOR AREA, FLOOR AREA, EXCUSE ME, MAY RESULT IN HIGHER YIELD, UH, FOR, FOR SALE UNITS.
AS YOU ALL KNOW, UM, THE PRODUCT TYPE RESIDENTIAL UNITS THAT ARE BEING DEVELOPED ARE TYPICALLY NOT FOR SALE THESE DAYS.
A LOT OF APARTMENTS BEING DEVELOPED, BUT IN THIS PARTICULAR CASE, THE APPLICANT'S PROPOSING TO BUILD 50 FOR SALE, UH, UNITS.
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WORK UNITS ARE PROPOSED.SO THERE WOULD BE SOME NON-RESIDENTIAL FAR AS PART OF THIS PROJECT, WHICH WE BELIEVE WOULD COMPLEMENT, UH, THE AL LOMA TOWN CENTER FOCUS AREA.
THAT WAS, UH, OUTLINED IN THE GENERAL PLAN, WHICH IS TO THE NORTH OF THIS, UH, PARTICULAR SITE.
SOME OF THE CONS, UH, UTILIZING A MASTER PLAN TO DEVELOP SITE-SPECIFIC NON-RESIDENTIAL FLOOR AREA, UH, THAT IS LOWER THAN WHAT THE CODE REQUIRES, MAY IMPACT ECONOMIC DEVELOPMENT POTENTIAL AND JOBS GROWTH IN THE IMMEDIATE AREA.
UH, UNDERSTANDING THAT MORE NON-RESIDENTIAL SPACE COULD EQUAL GREATER OPPORTUNITY FOR ADDITIONAL SALES TAX REVENUE, UH, AND JOBS.
UH, THEREFORE WE LISTED THIS AS A POTENTIAL CON, ALSO A MASTER PLAN THAT INCLUDES SITE SPECIFIC, SITE SPECIFIC STANDARDS LIKE WE'RE TALKING ABOUT THIS EVENING, COULD BE ARGUED THAT IT COULD ESTABLISH A, A PRECEDENT, UH, FOR OTHER PROJECTS MOVING FORWARD.
SO, FOLLOWING, UH, THIS DISCUSSION IN THIS HEARING WITH COUNSEL, UH, BASED ON THE FEEDBACK THAT YOU ALL PROVIDE, THE DEVELOPER COULD DETERMINE WHAT THEY'D LIKE TO DO MOVING FORWARD.
UH, CERTAINLY THEY HAVE THE PROCESS, UH, THE OPPORTUNITY OR THE ABILITY TO MOVE FORWARD SHOULD THEY CHOOSE TO DO SO.
UH, IF COUNCIL'S FEEDBACK IS NOT POSITIVE, THE POLICY THAT WAS ADOPTED ALLOWS FOR STAFF AND THE APPLICANT TO PROBLEM SOLVE, UH, TO GO BACK TO THE DRAWING BOARD, IF YOU WILL, AND THEN COME BACK TO THE COUNCIL ONE MORE TIME FOR ANOTHER DISCUSSION OF THIS PARTICULAR TYPE.
UM, AGAIN, WE'RE NOT ASKING FOR AN APPROVAL OF ANY KIND.
WE'RE NOT ASKING FOR A RECOMMENDATION OF APPROVAL, APPROVAL OF ANY KIND.
AND THE DISCUSSION THIS EVENING DOES NOT GUARANTEE A FUTURE APPROVAL NOR A FUTURE RECOMMENDATION OF APPROVAL FROM STAFF.
AGAIN, THIS IS SIMPLY A PRELIMINARY REVIEW TO DISCUSS POLICY IMPLICATIONS, UH, FOR A PROPOSED PROJECT.
THE RECOMMENDATION, AGAIN, UM, WE'RE ASKING THAT, THAT YOU CONSIDER POLICY IMPLICATIONS OF DEVELOPING A MASTER PLAN FOR THIS PARTICULAR PROJECT, UH, AUTHORIZING THIS PROJECT TO MOVE FORWARD.
UNDERSTANDING AGAIN, THIS ISN'T AN APPROVAL OR A GUARANTEE OF APPROVAL, AND THEN DIRECTING STAFF TO IMMEDIATELY WORK ON A CODE AMENDMENT, UH, TO BETTER ADDRESS THIS PARTICULAR MATTER.
THAT CONCLUDES OUR PRESENTATION, AND AS CITY MANAGER MENTIONED, SEAN MCPHERSON IS ALSO HERE TO HELP ANSWER ANY QUESTIONS.
UH, SEAN'S VERY WELL VERSED IN THIS PARTICULAR PROJECT AND ALL THINGS RELATED TO THE DEVELOPMENT CODE IN GENERAL PLAN.
UM, ARE THERE ANY QUESTIONS BEFORE WE OPEN THE ADMINISTRATIVE HEARING? IF NOT, WE WILL NOW OPEN THE ADMINISTRATIVE HEARING.
IS THERE ANY MEMBERS OF THE PUBLIC THAT WISH TO ADDRESS THE CITY COUNCIL ON THIS MATTER BEFORE WE TAKE IT BACK AND DELIBERATE THE STAFF RECOMMENDATIONS? SEEING NONE, PUBLIC HEARING IS NOW CLOSED.
BRING IT BACK TO THE COUNCIL FOR COMMENTS, QUESTIONS, UH, AND WHATNOT.
UM, I WOULD NOT BE OPPOSED, UM, TO REDUCING THE NON-RESIDENTIAL FLOOR.
UM, BUT I WOULD ALSO LIKE TO STATE THAT I THINK IT WOULD BE A GREAT IDEA TO HAVE, UM, THE LIVE WORK UNITS, UM, ON THE WEST SIDE OF RANCH CUCAMONGA.
UH, THERE HAS BEEN A POOL, UH, IN THE RESIDENTS THERE THAT WOULD LIKE TO SEE, UM, BUSINESSES BE ABLE TO HAVE AN OPPORTUNITY TO COME INTO THAT SIDE.
UH, NOW I WOULD ALSO WITH THAT, LIKE TO ALSO STATE THAT I WOULD NOT BE ON BOARD OR FAVORABLE FOR A FULL COMMERCIAL PROJECT ON THIS LAND, BECAUSE WHEN LOOKING AROUND, IT'S OBVIOUSLY CLEARLY COVERED BY RESIDENTIAL AREAS.
SO THAT WOULD BE MY ONLY, UH, RESERVATION ON MOVING FORWARD IN THAT.
A COUPLE CLARIFYING QUESTIONS.
SO YOU SAID, BASED ON THE FLOOR AREA RATIO REQUIREMENTS THAT ARE CURRENTLY IN PLACE, IT WOULD MANDATE, DID I SAY THAT RIGHT? 40 TO 60,000 SQUARE FOOT OF NON-RESIDENTIAL DEVELOPMENT, SOMEWHERE AROUND THERE? YEP.
SO, UM, JUST SOME QUICK MATH OFF THE TOP OF MY HEAD.
2.3 ACRES IS PROBABLY AROUND 100,000 SQUARE FEET, PROBABLY IN THAT BALLPARK.
AND SO CURRENTLY YOU, YOU'D SAY THAT AT LEAST 50% OF IT WOULD HAVE TO BE NON-RESIDENTIAL IN NATURE, WHERE THIS, UH, DEVELOPER CLEARLY IS INTERESTED IN BUILDING RESIDENCES.
UH, SO I CERTAINLY UNDERSTAND WHY THAT WOULD BE A SERIOUS PROBLEM.
AND TO MY STICKLERS POINT, THE FACT THAT IT'S A RESIDENTIAL NEIGHBORHOOD RIGHT NOW, UM, MANDATING 40 TO 60,000 SQUARE FOOT OF, OF COMMERCIAL ON A A HUNDRED THOUSAND SQUARE FOOT LOT DOESN'T MAKE A LOT OF SENSE.
UM, IT, BUT WHAT DOES MAKE A LOT OF SENSE IS, UM, EVEN THOUGH THAT YOU'RE GONNA BE DRASTICALLY REDUCING, UH, THE AMOUNT
[00:30:01]
OF NON-RESIDENTIAL DEVELOPMENT, 10 UNITS OUT OF 50 IS STILL 20% OF THE ENTIRE DEVELOPMENT, WHICH IN MY OPINION REPRESENTS A SIGNIFICANT PORTION OF THAT THAT COULD BE DEVELOPED FOR, LIKE I SAID, LIVE WORK.SO RESIDENTIAL SLASH COMMERCIAL USE, WHICH I THINK IS, IS GREAT.
I THINK THAT THOSE WILL BE VERY SUCCESSFUL.
I THINK THE ONES DOWN, UM, ON HERMOSA FOOTHILL ARE DOING REALLY WELL.
I KNOW I SEE, UH, A LOT OF PEOPLE WALKING IN AND OUT OF THEM, SO I ASSUME THAT THEY'LL PROSPER JUST LIKE THESE OTHER ONES.
SO BECAUSE OF THE CURRENT REQUIREMENT, UM, MAKING THIS PROJECT UNFEASIBLE, I, I, I SUPPORT THIS THE WAY, UH, STAFF'S RECOMMENDING IT, AND I'M ALSO GLAD THAT WE'RE GONNA GO AND LOOK TO SEE IF THERE'S OTHER SITES THAT MIGHT BE AFFECTED BY THIS, UM, ONEROUS REQUIREMENT.
COUNCILWOMAN SCOTT, I MAKE SURE THIS IS WORKING RIGHT.
WE REPORT, UH, I JUST DO HAVE TO SAY I AM, I'M GLAD THAT WE HAVE THIS POLICY IN PLACE BECAUSE THERE'S NOTHING MORE THAN, UM, YOU KNOW, WE DON'T LIKE HEARING DEVELOPERS OR OTHERS PUTTING IN TIME AND MONEY AND PROJECTS AND THEN GETTING TO THE POINT WHERE ALL OF IT, UM, IT DOESN'T WORK OUT.
AND ALL THOSE RESOURCES HAVE BEEN USED.
SO I APPRECIATE THIS POLICY AND JUST LIKE MY COLLEAGUES, I, I DO AGREE, I DID DRIVE BY THIS AGAIN THE OTHER DAY JUST TO MAKE SURE I WAS, YOU KNOW, IT WAS THE PROPERTY THAT I WAS THINKING ABOUT AND IT WAS, AND JUST, JUST THE SUGGESTION AND, AND LOOKING AT WHAT IT WOULD REQUIRE.
AND YOU LOOK AT THE EXISTING AREA, YOU KNOW, ANY TYPE OF DEVELOPMENT YOU WANNA MAKE SURE IT KIND OF WORKS WITH THE EXISTING COMMUNITY.
AND SEEING WHAT WOULD HAVE BEEN PROPOSED WITH THAT MASTER PLAN, IT WOULD REALLY DISTURB, I THINK, THE EXISTING AREA WITH A LOT OF RESIDENTIALS.
SO I WOULD BE IN SUPPORT OF MY COLLEAGUES WITH THEIR DECISION TO GO WITH STAFF.
RECOMMENDATION ON THIS ONE, MR. MAYOR.
THIS IS EXACTLY WHY WE AS A COUNCIL ADOPTED THIS POLICY, IS TO GIVE THE DEVELOPERS AN OPPORTUNITY TO COME BEFORE US.
IT THAT MEANS IT'S WORKING AND TO BE ABLE TO GIVE THE DEVELOPER GOOD FEEDBACK BEFORE THEY GET TOO FAR ALONG IN THE PROCESS.
AND WE ALSO WANNA MAKE SURE THAT WE ARE BALANCING THE FACT THAT WE ARE SUPPORTING OUR GENERAL PLAN AND THE PURPOSE, BUT WE ARE ALSO ENCOURAGING DEVELOPERS TO CREATE THE HOUSING THAT WE NEED, AS WELL AS ANY FUTURE OPPORTUNITIES FOR DEVELOPMENT AND BUSINESS AND ECONOMIC OPPORTUNITIES.
THE STAFF REPORT WAS OUTSTANDING BECAUSE I STARTED JOTTING DOWN QUESTIONS BEFORE I GOT TO THE PROS AND CONS, AND IT ABSOLUTELY ANSWERED BECAUSE I WAS AFRAID OF ESTABLISHING A PRECEDENT AND BEING TOO SUBJECTIVE, IF YOU WILL, IN TERMS OF GIVING FEEDBACK ON ONE PROJECT AND PERHAPS NOT ANOTHER.
BUT WHEN LISTENING TO COUNCIL MEMBER HUTCHISON TALK ABOUT THE INABILITY TO REALLY MEET THAT REQUIREMENT ON THAT PARTICULAR LOT WOULD NOT BE FEASIBLE.
AND, UM, COUNCILWOMAN STICKLER SAID THAT IT IS A RESIDENTIAL AREA, SO I'M GLAD THAT STAFF IS GOING TO GO BACK AND LOOK AT THAT DEVELOPMENT CODE TO MAKE SURE THAT IT, IT IS MODIFIED.
BECAUSE IF THERE ARE TOO MANY EXCEPTIONS, THEN IT'S NO LONGER A STANDARD.
SO WE NEED TO CREATE A STANDARD THAT DEVELOPERS CAN MEET THAT MAKES SENSE FOR OUR NEIGHBORHOODS, OUR AND OUR COMMUNITY, AS WELL AS OUR ECONOMIC DEVELOPMENT MOVING FORWARD.
SO I AM VERY PLEASED WITH THE COMPREHENSIVENESS OF THIS REPORT, AND I AM READY TO SUPPORT STAFF RECOMMENDATIONS.
I THINK MY COLLEAGUES HAVE PRETTY WELL SUMMED IT UP AND COVERED IT ALL.
UM, YOU KNOW, I, I, I HAVE TO SAY I LIKE THE IDEA OF MIXED USE DEVELOPMENTS.
UM, IN THIS PARTICULAR CASE, THIS PROJECT SITE I'M INTIMATELY FAMILIAR WITH AND, UH, FROM CLEAR BACK IN MY DAYS IN HIGH SCHOOL, UM, 2.3 ACRES WITH ALL THREE SIDES SURROUNDED BY SINGLE FAMILY DWELLINGS.
AND THEN YOU TALK ABOUT 50% OF IT, IF WE STICK TO THIS 30 OR 40 TO 60,000 SQUARE FEET OF NON-RESIDENTIAL USE IS, WILL TAKE UP 50% OF THE, A VERY NARROW PIECE OF PROPERTY.
AND THEN WHERE ARE PEOPLE GONNA PARK? AND NOW YOU HAVE TO ACCOMMODATE THAT.
SO I WANT, I WANT TO THANK THE DEVELOPER FOR COMING UP WITH THIS CONCEPT AND REALIZING THAT MAYBE THIS IS A, THAT THE STANDARD RIGHT NOW IS A LITTLE BIT ONEROUS IN THEIR CASE.
BY THE SAME TOKEN, I ALSO DON'T WANT TO, UH, GET AWAY FROM OUR PRIORITY AND OUR GENERAL PLAN OF MIXED USE DEVELOPMENT, SPECIFICALLY FOR THE PURPOSES OF PEDESTRIAN ORIENTATED ORIENTATED DEVELOPMENTS WHERE PEOPLE CAN, CAN NOT ONLY LIVE SOMEPLACE, BUT CAN EASILY GET WITHIN WALKING DISTANCE TO TAKE CARE OF SOME OF THEIR BASIC NEEDS WITH THE COMMERCIAL THAT MIGHT BE ALONGSIDE OF IT, WHICH WE'RE DOING ON SOME OF OUR TREND ALONG MAJOR CORRIDORS.
BUT IN THIS CASE, I WOULD COMPLETELY
[00:35:01]
SUPPORT THE, UH, STAFF RECOMMENDATION AND THAT, UH, ALSO, I WOULD JUST ADD A CAVEAT THAT WHEN WE DO THIS, I KNOW THIS IS SITE SPECIFIC, THAT WE'RE GONNA BE DEALING WITH THE MASTER PLAN, BUT WE DO NOT DO ANYTHING THAT IN THE FUTURE WOULD CREATE SUCH A PRECEDENT THAT WE'D BE HEARING PEOPLE ASKING FOR THE SAME THING, UH, WHEN IT ONLY WORKS IN CERTAIN AREAS AND NOT OTHERS.SO THANK YOU FOR, FOR YOUR STAFF REPORT, AND, UH, WE'LL GO AHEAD AND BRING THIS BACK TO OUR CITY COUNCIL NOW, UH, FOR, FOR IT FURTHER, NO FURTHER QUESTIONS.
SO I'D LIKE TO ENTERTAIN THIS MOTION SINCE THIS IS, THERE'S NOTHING SPECIFIC TO APPROVE OTHER THAN MAKING RECOMMENDATIONS TO APPROVE STAFF RECOMMENDATIONS TO MOVE FORWARD WITH A DEVELOPMENT CODE, UH, AMENDMENTS, UM, THAT ARE NECESSARY TO, TO MEET OUR OBJECTIVES.
SO DO WE HAVE A MOTION TO THAT EFFECT? SO JUST TO BE CLEAR, THAT'S ADOPTING THE THREE ITEMS AND STAFF'S RECOMMENDATION, RIGHT? YES.
OKAY, OUR NEXT ITEM, WE'LL NOW MOVE ON TO PUBLIC, ADVERTISE PUBLIC HEARINGS, AND I'LL TURN THIS OVER TO MR. GILLISON, UM, FOR THE TITLE AND, AND ALSO THE REPORT.
THANK YOU MR. MAYOR AND MEMBERS OF THE, UM, CITY COUNCIL.
SO, UM, AS YOU'RE AWARE, UM, THE, THE NUANCE OF, OF SPECIAL DISTRICT LAW REQUIRES THAT YOU GET TO SEE ITEMS RELATED TO, UM, THE, UH, THE BUDGETS AND THE, THE LEVY AND THE COLLECTION OF THE ANNUAL ASSESSMENTS AND, AND THE DIAGRAMS AND ASSESSMENTS AND ALL THAT.
YOU, YOU, YOU ESSENTIALLY REVIEW SPECIAL DISTRICT'S BUDGETS ABOUT THREE TIMES.
SO WHAT WE HAVE FOR YOU TONIGHT, UH, IS A PUBLIC HEARING THAT IS REQUIRED AND, AND YOU WILL CONSIDER THE RESOLUTIONS THAT CONFIRM ALL THE DIAGRAMS AND ASSESSMENT AND ORDER THE LE LEVY AND COLLECTION OF THE ANNUAL ASSESSMENTS FOR ALL OUR LANDSCAPE MAINTENANCE DISTRICTS, ALL OUR STREET LIGHTING MAINTENANCE DISTRICTS, AND, UH, PARK AND RECREATION IMPROVEMENT DISTRICT NUMBER PD 85 FOR THIS UPCOMING OR THIS CURRENT FISCAL YEAR, SORRY, THAT WE ARE NOW IN FY 2324.
SO WITH THAT, I'LL HAVE KELLY GARRA, OUR SPECIAL DISTRICTS ANALYSTS GIVE THE STAFF REPORT.
AND GOOD EVENING, MR. MAYOR AND CITY COUNCIL MEMBERS.
EACH YEAR PER THE LANDSCAPE AND LIGHTING ACT OF 1972, THE CITY HOLDS A PUBLIC HEARING TO RECEIVE PUBLIC COMMENT ON THE LEVY OF ASSESSMENTS FOR THE LANDSCAPE MEETING DISTRICTS, THE STREET LIGHTING, MAINTENANCE DISTRICTS, AND PARK AND RECREATION IMPROVEMENT DISTRICT PD 85.
ON JUNE 7TH, COUNCIL MEETING, YOU RECEIVED THE PRELIMINARY ENGINEERS REPORTS SETTING THE PUBLIC HEARING FOR TONIGHT TO OFFER THE OPPORTUNITY FOR THE PUBLIC TO PROVIDE YOU WITH ANY INPUT RELATING TO THE ASSESSMENTS OF THESE DISTRICTS.
THEREFORE, THE ORDER FOR TONIGHT IS TO OPEN THE PUBLIC HEARING, TAKE ANY PUBLIC COMMENTS, CLOSE THE PUBLIC HEARING, THEN TAKE A VOTE ON THE RESOLUTIONS TO CONFIRM THEIR LEVY.
THE APPROVAL OF THIS RESOLUTION WILL ALLOW US TO SUBMIT THE TAX RULE TO SAN BERNARDINO COUNTY AND MEET OUR TAX DEADLINE IN AUGUST.
I WILL GLADLY ANSWER ANY QUESTIONS, ANY QUESTIONS OF STAFF BEFORE WE OPEN THE PUBLIC HEARING? WELL DONE.
WE WILL NOW OPEN THE PUBLIC HEARING.
IS THERE ANY MEMBERS OF THE PUBLIC THAT ARE INTERESTED IN ADDRESSING THE CITY COUNCIL ON THIS MATTER OF OUR ASSESSMENT DISTRICTS? SEEING NONE, A PUBLIC HEARING IS CLOSED.
ANY COMMENTS OR QUESTIONS OF COUNCIL MEMBERS? THEN I WOULD ENTERTAIN A MOTION TO ADOPT RESOLUTION NUMBERS 2023 DASH 0 8 7 DASH 0 88 AND DASH 0 8 9 CONFIRMING THE DIAGRAMS AND ASSESSMENTS AND ORDERING THE LEVY OF COLLECTION OF ANNUAL ASSESSMENTS FOR LANDSCAPE MAINTENANCE DISTRICTS, STREET LINING MAINTENANCE DISTRICTS, AND PARK AND RECREATION IMPROVEMENT DISTRICT PD 85 FOR FISCAL YEAR 2023.
MAKE TO THE MOTION TO MOVE RESOLUTION 20 23 80 70.
WE WILL NOW MOVE ON TO OUR SECOND PUBLIC HEARING.
THIS IS A PUBLIC HEARING FOR CONSIDERATION OF A RESOLUTION THAT ADOPTS THE FIRE PROTECTION DISTRICT'S GENERAL FUND BUDGET FOR FISCAL YEAR 20 23, 20 24.
AND THAT'S CODIFIED IN RESOLUTION NUMBER 2023
[00:40:01]
DASH 0 3 4 FOR THE FIRE DISTRICT, MR. GILLISON, MR. MAYOR, AND MEMBERS OF THE COUNCIL.SO, UM, YOU'VE SEEN THE FIRE DISTRICT'S GENERAL FUND BUDGET WHEN WE DID THE BUDGET STUDY SESSION, AND THEN IT CAME BEFORE YOU AGAIN WHEN YOU HAD IT TO SET THE PUBLIC HEARING.
SO NOW IT'S HERE IN FRONT OF YOU AGAIN FOR THE PUBLIC HEARING.
UM, NOTHING HAS CHANGED, UH, IN, IN THE FIRE DISTRICT'S FINAL BUDGET FROM WHAT WE ORIGINALLY PRESENTED, UM, ABOUT A MONTH AGO NOW, OR MORE THAN A MONTH AGO, UH, IN THE, THE, UH, BUDGET STUDY SESSION.
SO, UM, IF YOU HAVE ANY QUESTIONS, WE'RE GLAD TO ANSWER THEM, BUT OTHERWISE, UH, WE WOULD RECOMMEND THAT YOU OPEN THE PUBLIC HEARING, TAKE ANY COMMENT, CLOSE THE PUBLIC HEARING, AND THEN ENTERTAIN A MOTION THAT WOULD ADOPT, UH, RESOLUTION NUMBER FD 2023 DASH 0 3 4 AND WOULD ADOPT THE FIRE DISTRICT GENERAL FUND FINAL BUDGET FOR THIS CURRENT FISCAL YEAR OF FY 2324.
ANY QUESTIONS BEFORE WE OPEN THE PUBLIC HEARING? PUBLIC HEARING IS NOW OPEN.
IS THERE ANY MEMBERS OF THE PUBLIC THAT WISH TO ADDRESS THE FIRE DISTRICT'S BOARD OF DIRECTORS CONSIDERATION OF ADOPTION OF THE FISCAL YEAR 20 23 24 FINAL BUDGET? SEEING NONE, PUBLIC HEARING IS CLOSED.
I'D LIKE TO ENTERTAIN A MOTION TO ADOPT THAT RESOLUTION.
NUMBER 23 DASH 0 3 4, ADOPTING THE GENERAL FUND FINAL BUDGET FOR FISCAL YEAR 20 23 24.
MR. SISON? YES, MR. MAYOR AND MEMBERS, MEMBERS OF THE CITY COUNCIL, BY THE WAY, UH, THE LAST ITEM THAT WE HAVE FOR YOU, UM, WELL, NOT THE LAST ITEM, BUT, UM, UH, THE LAST TWO ITEMS THAT WE HAVE FOR YOU ARE ALL RELATED, IF YOU WILL, TO, UH, DEVELOPMENT AND THE LOCAL ECONOMY.
SO ONE OF THE THINGS THAT, UH, THE CITY STAFF HAS DONE FOR THE BETTER PART OF SEVERAL DECADES NOW, THREE DECADES PROBABLY.
JOE JANICK, WHO'S MAKING HIS WAY UP HERE FROM EMPIRE ECONOMICS, AND HE HAS LONG PROVIDED, UM, UH, REDEVELOPMENT STAFF, UH, CITY MANAGERS, STAFF, UH, ECONOMIC DEVELOPMENT, UM, WITH A LOCAL ANNUAL REPORT WHERE WE TAKE A LOOK AT HOUSING PRODUCTION, HOUSING COSTS, JOB PRODUCTION, UM, FUTURE TRENDS, UM, WHAT THE, THE LARGER, UM, MACRO MARKET IS DOING AS WELL AS PARTICULAR TO RANCHO.
AND THEN OF, OF, IN OF SEVERAL OF THE RECENT YEARS, WE HAVE ALSO SOMETIMES HAD DR.
JANICK SUPPLEMENT THE REGULAR REPORT THAT HE DOES FOR US WITH, UM, A SPECIFIC NUANCE STUDY THAT WE LOOK AT EACH YEAR.
SO ONE OF THE BENEFITS HAS BEEN IN, IN ALL HONESTY, DR.
JANIK HAS ACCUMULATED, UM, IF YOU WILL, A DATABASE OF INFORMATION ON RANCHO CUCAMONGA, UM, WHICH IN SOME RESPECTS IS, IS UNEQUAL BECAUSE HE'S BEEN DOING IT FOR SO LONG AND HAS SO MUCH DATA LONGITUDINALLY.
HE ALSO UNDERSTANDS OUR MARKET, UM, MUCH DIFFERENTLY THAN SOMEBODY WHO WOULD JUST COME IN AND LOOK AT IT FOR ONE TIME.
AND HE'S BEEN FOLLOWING IT AND GIVING US, UM, ADVICE AND INFORMATION FROM OUR GIANT GROWTH DAYS, UM, YOU KNOW, ALL THE WAY THROUGH NOW WHERE WE ARE, UM, APPROACHING A MOSTLY BUILT OUT COMMUNITY.
SO THIS YEAR WE DID ALSO ASK HIM TO TAKE A LOOK AT AND DO AN ANALYSIS FOR US OF CURRENT AND FUTURE STATE OF WAREHOUSING AND DISTRIBUTION.
THAT IS A HOT BUTTON TOPIC RIGHT NOW, PERIOD IN THE STATE OF CALIFORNIA, SORT OF FULL STOP, AS WELL AS A SOMEWHAT CONTROVERSIAL ISSUE IN THE INLAND EMPIRE.
AND, UM, SO WE WANTED TO UNDERSTAND, GIVEN OUR LOCAL ECONOMY, WHAT DOES THIS MEAN? WHAT DOES THE FUTURE LOOK LIKE? WHAT ARE THINGS WE SHOULD BE TAKING INTO ACCOUNT? WHAT ARE THE PROS? WHAT ARE THE CONS IN THAT? AND WE THOUGHT THAT THIS YEAR, UM, WOULD BE A GOOD TIME THAT THE COUNCIL MIGHT BE INTERESTED, NOW THAT WE HAVE A RENEWED FOCUS ON ECONOMIC DEVELOPMENT IN ACTUALLY HEARING DR.
UM, AND SO HE IS HERE TONIGHT.
AND SO WITH NO FURTHER ADO, I WILL TURN IT OVER TO DR.
JANICK TO GO THROUGH, UM, THE POWERPOINT.
THANK YOU FOR THE OPPORTUNITY OF BEING HERE WITH YOU THIS EVENING.
MAYOR MICHAEL, COUNCIL MEMBERS, MY GOAL IS TO TAKE A LOOK AT WHAT'S GOING ON IN THE MACRO ECONOMY WITH RESPECT TO THE FEDERAL RESERVE BOARD IN PARTICULAR, AND THEN RELATE THAT TO WHAT'S HAPPENING SPECIFICALLY IN THE CITY OF RANCHO
[00:45:01]
CUCAMONGA.SO THE, THE GRAPHICS AND TABLES THAT YOU'LL SEE ARE DESIGNED WITH THE CITY IN MIND IN TERMS OF WHAT IT'S LOOKING FOR AND WHAT IT CAN, UH, BENEFIT FROM.
UH, WE HAVE, IF WE, LET'S SEE, HERE WE GO.
WE'RE GONNA START WITH THE RESIDENTIAL MARKET AND THEN GO TO WAREHOUSE DISTRIBUTION.
SO IN THE RESIDENTIAL MARKET, AS YOU KNOW, WE CURRENTLY HAVE HIGH MORTGAGE RATES, AND THOSE ARE CAUSING SLUGGISH SALES FOR HOMES, BUT APARTMENTS ARE STRONG.
UH, I BELIEVE THAT THESE HISTORICALLY LOW MORTGAGE RATES ON THE UPSIDE CREATED THE MOST SIGNIFICANT PRICE RISE IN THE SHORT AMOUNT OF TIME THAT WE'VE SEEN.
AND NOW THEY'RE HAVING A DRAMATIC IMPACT ON THE HOUSING MARKET IN A DIFFERENT WAY.
IT, IT'S NOT AS SIGNIFICANT AS THE, UH, CREATIVE FINANCING, BUT THIS IS GONNA HAVE A LONG-TERM EFFECT ON THE HOUSING MARKET.
SO I WILL GO OVER THAT WITH, WITH YOU SO YOU UNDERSTAND IT WELL.
SO LET'S TAKE A LOOK AT OUR FIRST GRAPHIC HERE.
UH, WE HAVE TWO GRAPHS ON THE LEFT HAND SIDE.
UH, WE HAVE A REPRESENTATION FOR THE CITY OF RANCHO CUCAMONGA, WHAT THE MARKET FOR HOMES LOOKS LIKE, HOMES FOR SALE IN TERMS OF THE SUPPLY AND DEMAND FACTORS.
ON THE LEFT GRAPH, UH, WE HAVE ON THE VERTICAL AXI THE NUMBER OF HOMES, UH, AVAILABLE FOR SALE OR PURCHASED, UH, BY MONTH ON AVERAGE, SHOWING THE LINE ACROSS, UH, FROM JANUARY TO DECEMBER.
SO WE CAN SEE THAT FOR THE YEARS 2018, 19 AND 20, UH, SUPPLY WAS ABOUT 425 HOMES PER YEAR ON THE AVERAGE.
UH, WHILE DEMAND WAS ABOUT 150 HOMES PER YEAR ON THE AVERAGE, MEANING THAT THERE WAS SUFFICIENT SUPPLY FOR SOMEBODY TO BUY A HOUSE AND THEN HAVE TIME TO SELL THEIR HOUSE AND, AND GO FROM THERE.
UH, ON THE RIGHT HAND SIDE, UH, WE HAVE THE SAME TYPE OF GRAPH, UH, BUT WE LOOK AT IT NOW STARTING IN JANUARY OF 22, GOING THROUGH, UM, MAY OF THIS YEAR.
AND WE CAN SEE THAT THE RELATIONSHIP BETWEEN SUPPLY AND DEMAND HAS CHANGED DRAMATICALLY.
UH, THE SUPPLY IS MUCH LOWER THAN WHAT IT WAS HISTORICALLY, AS WE KNOW, BECAUSE PEOPLE WANNA STAY WITH THEIR LOW MORTGAGE RATES.
DEMAND ON THE OTHER SIDE IS LOWER BECAUSE THE MORTGAGE RATES ARE HIGH
SO THESE HIGH MORTGAGE RATES CAUSE PEOPLE TO STAY IN THEIR HOMES, NOT PUT 'EM ON A MARKET, AND LIKEWISE, THEY REDUCE THE DEMAND.
SO WHAT DOES THIS MEAN? ON THIS GRAPHIC HERE, WE HAVE ON THE VERTICAL AXIS, THE NUMBER OF, UH, SINGLE FAMILY DETACHED AND ATTACHED HOUSING SALES IN THE CITY, GOING FROM, UH, ZERO ON THE VERTICAL AXIS UP TO ABOUT 3000.
AND THEN WE LOOK AT THE YEARS, UH, 2000 TO 2022.
ON THE LEFT SIDE, WE CAN SEE THE SALE OF HOMES, INCLUDING A LOT OF NEW HOMES, WAS AROUND 3000 A YEAR.
THAT DROPPED DOWN TO ABOUT 1500 AND CONTINUED AT 1500 UNTIL 2022, WHERE IT DROPPED DOWN TO ABOUT, UH, 1068, UH, A LOW FOR SINGLE FAMILY AND THREE 15 FOR ATTACHED.
DRAMATIC IMPACT THERE IN TERMS OF WHAT'S HAPPENING TO THE MARKETPLACE.
UH, WITH THIS BACKGROUND, WE'LL GO TO MY FAVORITE GRAPH FOR RESIDENTIAL.
IT LOOKS COMPLICATED, BUT YOU'LL LOVE IT
OKAY, UH, WHAT WE'RE DEALING WITH HERE IS A CONCEPT CALLED ANNUAL HOUSING PAYMENT.
THE ANNUAL HOUSING PAYMENT LOOKS AT THREE COMPONENTS, UH, THE MORTGAGE PRINCIPLE PART, THE MORTGAGE INTEREST PART, AND THEN PROPERTY TAXES.
SO WHAT WE DID, UH, BEFORE WE GET INTO DETAIL ON THE GRAPH, WE TOOK A LOOK BY MONTH FOR THE CITY OF RANCHO CUCAMONGA BASED UPON HOUSING PRICES, BASED UPON INTEREST RATES, WHAT THE ANNUAL HOUSING PAYMENT WOULD BE TYPICALLY FOR SOMEONE IN THE CITY OF RANCHO CUCAMONGA.
AND WE DID THAT BY MONTH FROM JANUARY OF 2018, ALL THE WAY FORWARD TO, UH, DECEMBER OF 24.
I WANT TO GIVE A SENSE OF WHERE WE'RE GOING AS WELL.
SO LET'S START OUT WITH THE, UH, LETTER A.
YOU CAN SEE THAT AT THE TOP OF THE GRAPH.
AND THEN WE HAVE A CAPTION ON THE LEFT-HAND SIDE.
SO IN 2019 AND 2020, LOWER MORTGAGE RATES WERE OFFSET BY HOUSING APPRECIATION.
NOW STARTING THERE, LET'S TAKE A LOOK AT THAT GRAPH.
UH, ON THE BOTTOM WOULD BE PROPERTY TAXES, WHICH IS A FUNCTION OF A CERTAIN PERCENTAGE OF THE PRICE OF THE HOME.
THE HIGHER THE PRICE OF THE HOME, THE HIGHER THE PROPERTY
[00:50:01]
TAXES.THE GRAY PART, THE GRAY PART REPRESENTS MORTGAGE PRINCIPLE OF THE MORTGAGE PAYMENT, HOW MUCH GOES TO PAY OFF THE PURCHASE PRICE OF THE HOME.
THE ORANGE PART REPRESENTS MORTGAGE INTEREST RATES.
SO AS WE LOOK AT THESE PARTS, PROPERTY TAXES ARE THERE, THEY'RE KIND OF STABLE.
THE MORTGAGE PRINCIPLE DOES, UH, UH, CHANGE MODERATELY, DEPENDING UPON HOW HOUSING PRICES ARE GOING.
BUT THEN WE GET TO THE ORANGE PART AND WE CAN SEE THAT THAT'S THE MOST DRAMATIC COMPONENT, SUBJECT TO A LOT OF VOLATILITY.
SO STARTING WITH A, AGAIN, IF WE TAKE A LOOK AT THE LEFT HAND SIDE OF THIS, WE HAVE A LINE GOING ACROSS 38,000 THAT WOULD REPRESENT THE TOTAL HOUSING PAYMENT OVER THAT TIME PERIOD, WHICH EFFECTIVELY WAS FROM JANUARY, 2018 TO, UM, MARCH OF 21.
SO IT WAS STABLE AT ABOUT THAT AMOUNT.
THEY'RE ADJUSTED FOR INFLATION, SO YOU DON'T HAVE TO DEAL WITH ALL OF THAT.
'CAUSE WE HAVE A LONG TIME PERIOD.
THEN WE, UH, WE START LOOKING IN APRIL, 2021 AND THE ANNUAL HOUSING PAYMENT BEGINS TO GO UP.
AND IN THAT PART, WE HAD RISING PRICES PUSHING UP, UM, THE ANNUAL HOUSING PAYMENT.
AND THEN IN C UH, WE GET TO HIGHER PRICES AND HIGHER MORTGAGE RATES WHERE IT ACCELERATES EVEN MORE.
AND THEN IN D YOU CAN SEE THE PEAK IN APRIL, 2023 AT 51,000.
SO THAT ANNUAL MORTGAGE PAYMENT WENT FROM 38,000 TO 51,000.
AND WE COULD SEE THE MAJOR UNDERLYING FACTOR WAS INTEREST RATES.
WHEN THE FEDERAL RESERVE BOARD LOWERED THE INTEREST RATES, UH, BACK IN, UH, 2021, THAT MORTGAGE, UH, COMPONENT, THE ORANGE WASN'T VERY HIGH.
AND THEN WHEN INTEREST RATES ARE UP THERE NOW AT SIX POINT A HALF TO 7%, IT'S, IT'S ENORMOUS.
WE, WE TOOK A, A REASONABLE ESTIMATE GOING AHEAD.
WHAT WOULD IT TAKE TO GET BACK TO THE PAYMENT IN REAL DOLLARS OF 38,000 A YEAR? UH, AND THAT'S IN CAPTION.
IF CURRENT HOUSING PRICES DECLINED BY 8% AND MORTGAGE RATES DECLINED BY 4.5% BY DECEMBER, 2024, THEN THE PAYMENT WOULD RETURN THERE.
THE DECLINE IN MORTGAGE RATES, THAT FOUR POINT A HALF PERCENT IS BASED UPON THE FEDERAL RESERVE BOARD MEETING.
IT'S TARGET INFLATION TO 2% AND ADDING ANOTHER COUPLE AND A HALF PERCENT ONTO THAT BECAUSE IT'S A LONG TERM RATE.
BUT WHAT WE HAVE TO KEEP IN MIND HERE IS BACK IN 2021, NOT ONLY DID THE FEDERAL RESERVE BOARD LOWER THE FEDERAL FUNDS RATE TO ZERO, IT'S NOW IN THE FIVE TO FIVE POINT A HALF PERCENT RANGE.
BUT IN ADDITION TO THAT, THEY PURCHASED $4 TRILLION OF MORTGAGE BONDS TO SOFTEN LONG-TERM RATES, AND $2 TRILLION OF MORTGAGE.
UH, $4 TRILLION OF TREASURY AND 2 TRILLION OF MORTGAGE BONDS.
WE PROBABLY WON'T SEE 'EM DO THAT AGAIN,
SO IT'S, IT'S A DOUBLE EFFECT THERE.
AND ANY COMMENTS OR QUESTIONS ON THIS? VERY WELL DONE.
NO
WE DON'T HAVE THE NORMAL KIND OF TURNOVER, SO THAT IS AN IMPACT.
OUR NEXT GRAPH DEALS WITH THE APARTMENT MARKET.
ON THE LEFT HAND SIDE, WE HAVE THE, UH, RENT FOR APARTMENT UNITS GOING OVER THE PAST SEVERAL YEARS.
AND WE ARE LOOKING AT THE BLUE LINE FOR THE CITY OF RANCHO CUCAMONGO, WHERE RENTS IN THIS TIME PERIOD WENT FROM 1750 UP TO 27 50.
NOW WE TAKE A LOOK AT THE RIGHT HAND SIDE, AND WE'RE LOOKING AT AN APARTMENT PROJECT, UH, IN THE RESORT.
AND ESSENTIALLY THOSE ARE THE RENTS THEY HAVE FOR NEW APARTMENT UNITS WITH THEIR HIGHLY AMENITIZED, UH, PLANNED COMMUNITY THERE AS WELL.
AND IT TURNS OUT THE EXIST, THE RENT ON EXISTING APARTMENTS OF 27 50.
IF SOMEONE CAN PAY THAT ONLY THEN THEY WOULD BE ABLE TO AFFORD IN THE NEW APARTMENT MARKET, A UNIT OF ONLY 7 76 OR 825 SQUARE FEET.
IT'D BE HARD TO GO ABOVE THAT.
SO, UH, WITH THE HELP OF THE PLANNING DEPARTMENT, UH, THERE WAS IDENTIFIED APARTMENT PROJECTS THAT ARE,
[00:55:01]
UH, NEAR TERM, UH, UNDER CONSTRUCTION OR GETTING FINAL APPROVALS.IF WE LOOK AT THE, UH, GRAPH HERE, WE HAVE A FORECAST OF APARTMENT DEVELOPMENT GO STARTING IN 2022 AND GOING OUT TO 2028.
UH, AS AN ECONOMIST, WHEN I'M ASKED TO MAKE A FORECAST, I'M TRYING TO IDENTIFY HOW MUCH THE MARKET CAN SUPPORT WITH A REASONABLE VACANCY RATE.
AND REASONABLE RENT INCREASES TWO, 3% A YEAR.
IT'S POSSIBLE THAT ALL THESE APARTMENT UNITS, UH, WHICH ARE 2,750 IN THESE VARIOUS PROJECTS, COULD COME ON MORE QUICKLY.
AND IN THE EVENT THEY DO, THE VACANCY RATE WOULD SOFTEN AND RENTS MIGHT SOFTEN, AND THEN THERE'LL BE AN ADJUSTMENT TO GET BACK TO THE LONG-TERM TREND LINE.
THE PROJECTS THAT WE HAVE, UH, CURRENTLY ACTIVE IS THE HOMECOMING WITH 867 UNITS, AND THAT'S IN GREEN, UH, UNDER CONSTRUCTION.
OUR LA MIRAGE WITH 193 AND WESTBURY WITH 131, WHICH ARE IN THE LIGHT BLUE, UH, PERMITS ISSUED, UH, HARVEST TERRA VISTA, UH, 660, UH, UNITS IN THE, IN THE GRAY.
AND THEN FINALLY, FUTURE ALTA KURVE WITH 260 33 NORTH WITH 311 AND HAVEN ARROW WITH 248 IN THE ORANGE.
SO WE, WE HAVE QUITE A FEW APARTMENT, UH, PROJECTS COMING ON.
UH, WE, WE DON'T HAVE THE FOR SALE RESIDENTIAL.
UM, WE DID HAVE A NUMBER OF PROJECTS SEVERAL YEARS AGO.
THERE ARE SOME SITES THAT ARE DESIGNATED FOR RESIDENTIAL, BUT IN LOOKING AT THOSE OVER THE YEARS, THEY JUST DON'T SEEM TO, UH, MAKE A MOVEMENT TO COME TO THE MARKETPLACE.
'CAUSE MARKET CONDITIONS ARE REASONABLY GOOD.
UH, ANY QUESTION ON THIS PART OF THE SEC SECTION? I'M JUST, UH, ONE, ONE QUICK QUESTION ABOUT REGARDING THIS CHART VERSUS A CHART WE JUST SAW ABOUT RENTS.
WHEN THESE APARTMENT BUILDINGS GET BUILT, DO YOU PROJECT OR DO YOU SEE A REDUCTION IN THE RENTAL COST FOR THE HOME OR FOR THE PERSON LIVING IN APARTMENTS? I, I THINK THE HOMECOMING PROJECT IN THE RESORT HAS MORE SO HIGHEND RENT RENTAL UNITS THAN WHAT WE'LL SEE IN SOME OF THE OTHER APARTMENTS.
UH, WE'RE LOOKING AT WAREHOUSE DISTRIBUTION HERE, AND WE'RE LOOKING AT WHAT'S HAPPENING.
AND WHAT WE DID WAS SOMETHING UNIQUE FOR THE CITY, AND YOU'LL SEE THIS AT THE END, WHERE WE TAKE A LOOK AT WHAT ONE ACRE OF PROPERTY IN VARIOUS NON-RESIDENTIAL DEVELOPMENTS GENERATES IN VARIOUS WAYS, UH, STARTING OUT HERE.
UH, SO GEOGRAPHICALLY, UH, RANCHO CUCAMONGA HAS A STRATEGIC LOCATION ON THE, ON THE LEFT HAND MAP, WE HAVE THE, UH, PRODUCTS COMING IN AT THE, UH, LA AND LONG BEACH PORTS WAREHOUSE DISTRIBUTION FACILITY IN RANCHO CUCAMONGA PUTS IT IN CLOSE PROXIMITY TO THE EMPLOY, TO THE POPULATION CORE OF LOS ANGELES, UH, MUCH MORE SO THAN UH, CITIES EASTERLY.
ON THE RIGHT HAND SIDE, WE HAVE A MAP THAT SHOWS THE INLAND EMPIRE, AND ON THAT MAP WE HAVE, UM, THE ORANGE, UH, PIXELS AND THOSE DESIGNATE WHERE THERE ARE, UH, WAREHOUSE DISTRIBUTION, UH, DEVELOPMENTS PRESENTLY.
SO RON CUCAMONGA IS THE CLOSEST TO THE, TO THE LA CORE, AGAIN, WITH THE GREAT HELP OF THE PLANNING DEPARTMENT, UH, HERE'S WHAT WE IDENTIFIED.
THAT'S IN THE PLANNING PROCESS.
SO, UH, IN THIS GRAPHIC, WE HAVE THE SQUARE FOOTAGE OF, UH, SPACE THAT'S PLANNED OR UNDER DEVELOPMENT FOR WAREHOUSE DISTRIBUTION.
AND THEN WE HAVE A GOING ACROSS VARIOUS, UH, DEGREES OF PLANNING APPROVALS.
UH, SO UNDER CONSTRUCTION CURRENTLY, UH, WE HAVE 2.4 MILLION SQUARE FEET AND ABOUT 2 MILLION SQUARE FEET OF THAT ARE IN ONE PARTICULAR PROJECT.
OKAY? NOW, PLAN CHECK, UH, WHICH WE WOULD EXPECT TO BE ABSORBED IN 2024 AND 2025 HAS 840,000 SQUARE FEET.
AGAIN, THE GREEN BEING A LARGE PROJECT.
AND THEN FINALLY GOING OUT FURTHER, UH, IN THE ENTITLEMENTS, WHICH MAY NOT GET TO THE MARKETPLACE TO 25 26, UH, WE HAVE ABOUT ANOTHER 1.3 MILLION TOTAL OF 4.5 MILLION.
THAT'S A LOT OF SQUARE FOOTAGE.
ON THIS, UH, GRAPHIC HERE, WE HAVE ON THE LEFT HAND SIDE THE AMOUNT OF WAREHOUSE DISTRIBUTION THAT WE ESTIMATE WOULD BE ABSORBED PER YEAR BASED UPON WHAT WE JUST COVERED IN THE PRIOR GRAPH, THE 4.5 MILLION SQUARE FEET.
AND WE HAVE SOME OF THAT HAPPENING IN 2023 WITH THE BUILDINGS UNDER CONSTRUCTION.
[01:00:01]
THEN AS MORE TENANTS MOVE IN, WE HAVE THAT PEAKING IN 24, 25, AND THEN, UH, THE REST OF IT BEING ABSORBED IN 2026.SAME THING IS FOR THE APARTMENTS.
IT, SOME OF THEM CAN ACCELERATE, SOME OF THEM COME ON THE MARKET SOONER, BUT AS THAT HAPPENS, THEN VACANCY RATES AND, AND ASKING, UH, PRICES WILL BE ADJUSTED.
UH, ON THE RIGHT HAND SIDE, WE HAVE THAT, HOW THAT WILL ENJOY GENERATE EMPLOYMENT.
UH, ESTIMATING ABOUT 2,833 JOBS IN THE WAREHOUSE DISTRIBUTION CENTER WHERE THE TYPICAL PAY FOR THE CITY, THIS IS JUST FOR THE CITY, IS ABOUT 55,000 FOR SOMEONE, UH, IN THAT AREA.
THEN AT THE BOTTOM OF THE SECOND GRAPH, WE CAME ACROSS A VARIOUS VERY INTERESTING STATISTIC SAYING, BASED UPON RECENT DATA OF WAREHOUSE DISTRIBUTION, ABOUT 80% OF SUCH WORKERS RESIDE IN THE CITY, AND THE REST WOULD GO MOST LIKELY FURTHER EASTERLY WHERE THERE'S MORE AFFORDABLE RENTS.
OKAY, UH, HERE'S A SNAPSHOT BEFORE WE GET INTO THE, UH, KEY TABLE IN TERMS OF VACANCY RATES.
SO WE'RE AT THE UPPER LEFT HERE, AND IN EACH GRAPH WE HAVE A METRIC.
AND THEN ON THE BOTTOM WE HAVE WD FOR WAREHOUSE DISTRIBUTION, THEN RETAIL, THEN OFFICE, AND THEN WE PUT HERE MULTIFAMILY, WHICH TOOK SOME CREATIVE THINKING BECAUSE IT'S PEOPLE, NOT WORKERS, BUT IT, IT'S STILL KIND OF LIKE A, A, A NON-RESIDENTIAL USE THAT THE CITY, YOU KNOW, CAN CONSIDER.
SO VACANCY RATE, GREAT FOR WAREHOUSE DISTRIBUTION, 1.1%.
RETAIL IS UP THERE AT SIX FIVE.
OFFICE, FIVE, THREE MULTIFAMILY AT FOUR EIGHT, GOING TO THE TOP RIGHT.
THE TYPICAL, UH, RENT PER SQUARE FOOT, WAREHOUSE DISTRIBUTION, A DOLLAR 51, UH, RETAIL TWO 20, OFFICE 1 95 AND MULTIFAMILY AND IMPUTED RENT WOULD BE $2 AND 18 CENTS PER SQUARE FOOT OF RENTAL SPACE.
OKAY, UH, ON THE BOTTOM, UH, LEFT, WE HAVE SALARIES, UH, WAREHOUSE DISTRIBUTION, 55,000, RETAIL, 31 OFFICE 53.
THAT INCLUDES ALL KINDS OF OFFICE WORKERS AND MULTIFAMILY, 74,000, AGAIN, AN IMPUTED VALUE FOR THOSE PEOPLE.
AND THEN ON THE FAR RIGHT, EMPLOYMENT RESIDENCE PER ACRE, WHICH IS A REAL STUNNER, UH, WAREHOUSE DISTRIBUTION 14, RETAIL 87, OFFICE 275, AND MULTI-FAMILY A HUNDRED.
AND THAT 14 WILL CONTINUE TO GO DOWN AS AUTOMATION CONTINUES TO, UH, IMPROVE.
SO THE CENTERPIECE NOW IS SOMETHING THAT, UH, WE DON'T NEED TO ABSORB THIS, UH, RIGHT HERE TODAY, BUT WHAT WE TRY TO DO FOR THE CITY HERE IS SAYING WE HAVE THESE FOUR MAJOR KINDS OF LAND USES, WAREHOUSE DISTRIBUTION, RETAIL OFFICE, AND MULTIFAMILY.
IF THE CITY HAS A, AN ACRE OF PROPERTY, AND THEY WERE LOOKING AT WHAT THAT ACRE OF PROPERTY MEANT TO THE CITY, WE CAME UP WITH SOME METRICS.
SOME GUIDELINES, THEY'RE NOT EXACT BECAUSE EVERY PROJECT'S GONNA BE DIFFERENT.
SO LET'S, WE AT THE TOP, WE HAVE, UM, THE WAREHOUSE DISTRIBUTION, RETAIL OFFICE, AND MULTIFAMILY.
IN BLUE, WE HAVE THE VACANCY RATES, WHICH WE JUST COVERED.
UH, WE HAVE THE MARKET RENTS, AND THEN WE GET TO SOME TECHNICAL THINGS.
NET OPERATING INCOME, THE CAP RATE, THE IMPLIED MARKET VALUE.
SO FOR AN ACRE OF WAREHOUSE DISTRIBUTION, ABOUT 1.9 MILLION.
RETAIL, ABOUT 1.1 OFFICE, ABOUT 4 MILLION, AND MULTIFAMILY ABOUT 15 MILLION.
THAT'S THE BEST ESTIMATE WE CAN COME UP WITH OF A, THE REPUTED VALUE FOR EACH OF THOSE LAND USES PER ACRE.
UH, BUILDING, UH, SALES VALUE PER SQUARE FOOT FOLLOWS FROM THAT BUILDING.
COVERAGE, UH, ESTIMATED PROPERTY TAX REVENUE, WAREHOUSE DISTRIBUTION, 33,000, RETAIL 19,000, OFFICE 71,000, MULTIFAMILY, 260,000.
UH, FUTURE DEMAND HIGHEST FOR WAREHOUSE DISTRIBUTION.
AND THEN WE GET TO THE DIFFERENT THINGS, A WOR, UH, TOTAL WORKERS OR RESIDENTS PER SECTOR PER ACRE.
THE AVERAGE WAGES, WHICH WE COVERED, GROWTH, POTENTIAL OF WAGES, WHETHER THEY'RE STRONG DEMAND FOR THOSE KINDS OF WORKERS, WHETHER THEY'RE PRIMARILY CI UH, CITY RESIDENTS, SALES TAX ELIGIBLE IMPACTED BY REMOTE WORK AND NEGATIVELY IMPACTED BY AUTOMATION.
ALL THOSE DIFFERENT KIND OF, UH, FACETS.
SO ON THE BOTTOM OF THE POSITIVE EXTERNALITIES, UH, IN GREEN THERE, WE'RE LOOKING AT THE YELLOW SHADED AREA.
OFFICE BRINGS IN WORKERS, AND MULTIFAMILY IS A RESIDENTIAL BASE.
THE EXTERNALITIES, UH, WAREHOUSE DISTRIBUTION, THE, UH, TRAFFIC.
[01:05:01]
SOME STATISTICS WE SAW THAT THE CITY HAS ABOUT 32,000 TRUCK TRIPS PER DAY.AND THERE'S, THEN THERE'S VARIOUS STUDIES THAT SHOW A POLLUTION, UH, RELATED TO THAT.
BUT ANOTHER THING IS OPPORTUNITY COST.
TO THE EXTENT THAT, UH, SOMEONE USES AN ACRE FOR WAREHOUSE DISTRIBUTION, THEN THAT SAME ACRE IS PRECLUDED FROM OTHER USES THAT THE CITY MIGHT WANNA CONSIDER ON A BROAD BASIS.
SOME, SOME MIXED BLENDING THAT IT FEELS THE BEST.
AND FINAL NOTES, UH, HIGH DEMAND FOR WAREHOUSE DISTRIBUTION SPACE, UH, SPACE DUE TO PRIME LOCATION FOR THE CITY IN THE INLAND EMPIRE, UH, RETAIL CAN SERVICE DAILY AND REGIONAL NEEDS.
BUT NOW WE HAVE VACANCY AND RATE, UH, CHALLENGES, AND THEN OFFICE SUSCEPTIBLE TO REMOTE WORK, UH, LOW VACANCY.
AND IN, UH, RANCHO CUCAMONGA, IT'S DRIVEN BY HEALTHCARE DEMAND.
SO, SO THAT'S WHAT WE HAVE HERE AS AN OVERVIEW.
AND OUR FINAL SLIDE WOULD BE CONCLUSIONS.
SO FIRST OF ALL, FOR THE RESIDENTIAL MARKET, HIGH MORTGAGE RATES, UH, FOR SALE HOME SLUGGISH OVER THE FORESEEABLE FUTURE, WHILE APARTMENTS ARE STRONG, THE MARKET FOR EXISTING HOMES EXPECTED TO REMAIN SLUGGISH THROUGH 2024.
AS LONG AS RATES ARE HIGH, IT'S GONNA BE SLUGGISH.
AND THAT 2024 DATE WOULD MEAN THAT IT WOULD TAKE FIVE YEARS FOR THE MARKET TO RECOVER FROM WHEN THE FED STARTED WITH COVID OCCURRING.
EMPLOYMENT RECOVERED IN TWO YEARS, BUT THE HOUSING MARKET, PEOPLE DON'T HAVE TO SELL.
SO THEY, THEY STAY IN THEIR HOMES, THEY REMODEL, THEY, IT'S GONNA TAKE A LOT LONGER TO GET BACK TO A NORMAL KIND OF TURNOVER.
UH, HOME SALES, RELATIVELY LOW TO CURRENT HOMEOWNERS HAVING LOW MORTGAGE RATES.
AND NEW RESIDENTIAL DEVELOPMENT IS IN THE CITY'S PRIMARILY APARTMENTS, UH, FOR THE NON-RESIDENTIAL, THE WAREHOUSE DISTRIBUTION AS THE PRIMARY GROWTH SECTORS.
BUT AT THE MINIMAL ECONOMIC BENEFITS SUCH AS PROPERTY TAXES AND THINGS LIKE THAT, UH, ROBUST DEVELOPMENT POTENTIAL FOR WAREHOUSE DISTRIBUTION IN THE CITY, UH, ECONOMIC BENEFITS ARE MINIMAL.
THERE'S POTENTIAL TRAFFIC, UH, ISSUES AND HEALTH EXTERNALITIES.
SO, SO THE CONCLUSION OF ALL THIS IS THE FOCAL SEC SECTORS ARE APARTMENTS IN THE NEAR TERM BECAUSE OF THE HISTORICALLY LOW MORTGAGE RATES AND THEN WAREHOUSE DISTRIBUTION.
WELL, I, UH, DOCTOR, THANK YOU SO MUCH.
UM, ANY QUESTIONS? I'M SURE WE HAVE SOME QUESTIONS OR COMMENTS REGARDING THIS REPORT, BUT, UM, THANK YOU SO MUCH.
COUNCILMAN, THANK YOU VERY MUCH.
JANICK, THANK YOU VERY MUCH FOR THE PRESENTATION TODAY.
UM, I HAVE A REAL ESTATE LICENSE.
I'VE BEEN LICENSED TO SELL REAL ESTATE SINCE I WAS 19 YEARS OLD.
SO THIS IS PARTICULARLY INTERESTING TO ME.
ONE OF YOUR SLIDES THAT ACTUALLY HAD A, UH, PROJECTION OF WHAT THE WORLD MIGHT LOOK LIKE IN TERMS OF INTEREST RATES IN 2024.
SO YOU SAID THAT FOR A LONG TIME THERE WAS ABOUT $38,000 A YEAR PEOPLE WERE PAYING FOR ON AVERAGE THEIR MORTGAGE.
SO SOME QUICK DIVISION, $3,156 A MONTH KIND OF SOUNDS BALLPARK.
AND IT'S BEEN AS HIGH AS 51,000 OR $4,250.
SO $1,100 MORE A MONTH, 25% MORE A MONTH.
THAT'S A BIG DELTA FOR PEOPLE, ESPECIALLY FIRST TIME HOME BUYERS THAT ARE COMING AND LOOKING AT EYE POPPING PRICES.
AND ONE THING THAT YOU SAID THAT IT WOULD TAKE TO RETURN TO MORE OF A 3,100, UH, DOLLARS NUMBER WAS FOR, YOU SAID, AN 8% DECREASE IN THE VALUE OF HOMES, BUT ALSO FOUR AND A HALF PERCENT INCREASE, OR FOUR POINT HALF PERCENT INTEREST RATE, RIGHT.
WHERE WE'RE CURRENTLY HOVERING IN, YOU KNOW, THE SIXES YES.
UM, I COULD CERTAINLY SEE 8% DROP IN THE MARKET, AT LEAST RIGHT NOW BEFORE I COULD SEE INTEREST RATES.
MORTGAGE INTEREST RATES DROP TO 4.5%, IF YOU KIND OF AGREE WITH THAT ASSESSMENT.
IF YOU WERE TO LOOK OUT, AND I'M ASKING YOU TO FORECAST NOW, AND I UNDERSTAND THAT, AND I'M ASKING YOU TO KIND OF GUESS THE FUTURE.
UM, AND ONE OF THE OTHER QUESTIONS I'M GONNA HAVE IS YOU TALK ABOUT RA UH, MORTGAGE RATES MAKING FOR SLUGGISH HOME SALES.
ONE QUESTION I HAVE IS, ONCE YOU SEE THOSE RATES FALL FROM THE SIXES, THE SEVENS DOWN IN THE FIVES AND THE FOURS, OBVIOUSLY A LOT OF PEOPLE THAT HAVE BEEN HESITANT ABOUT RELOCATING WILL RECONSIDER BECAUSE MORTGAGE RATES ARE MUCH LOWER THAN THEY ARE NOW.
SO YOU CAN SEE PEOPLE THAT KIND OF HAVE THESE GOLDEN HANDCUFFS ON RIGHT NOW THAT HAVE THESE 3% MORTGAGES.
AND WHEN THE RATES COME DOWN, DOES THAT FINALLY UNLOCK THE DOOR FOR THEM TO BE ABLE TO MOVE AND WILL SEE MORE LISTINGS COME ON THE MARKET? AND SO I, I GUESS THAT QUESTION IS, IT'LL ALSO SPUR DEMAND, RIGHT? WHEN WE HAVE LOW RATES AGAIN.
SO HOW DO YOU SEE THAT KIND OF EQUALIZING IF YOU HAD TO? THAT'S A, A GREAT COMMENT.
[01:10:01]
UH, IT'S, IT'S KIND OF LIKE THE SCISSORS AFFECT IN ECONOMICS.WHEN THE, WHEN THE PRICE GOES UP, THE QUANTITY DEMAND, IT GOES DOWN AND THE QUANTITY SUPPLY GOES UP.
IT'S LIKE WITH THESE MORTGAGE RATES AS THEY GO DOWN, RIGHT? MORE PEOPLE WILL BE ABLE TO GET INTO THE MARKET TO AFFORD IT.
AND SIMULTANEOUSLY, AS THEY GO DOWN, THEN THE PEOPLE WHO HAVE LOCKED IN THE RELATIVELY LOW RATES WILL BE MORE OPEN TO MAKING A MOVE.
SO, UH, THAT'S ABSOLUTELY GREAT.
THE PEOPLE WHO WANNA MAKE A MOVE WILL STILL FACE MOST LIKELY A HIGHER PRICE, SO THEY'LL BE TAKING ON THE HIGHER PRICE, AND THEY ALSO WILL HAVE A HIGHER PROPERTY TAX.
SO WHAT WE'RE SEEING IN THE MARKET NOW, WE DEAL A LOT WITH, UH, PUBLIC ENTITIES ONLY AND HELP 'EM WITH THEIR COMMUNITY FACILITIES, DISTRICTS, THE BUILDERS ARE SHIFTING TO THE MORE AFFORDABLE PRODUCT, NOT AS MUCH MOVE UP.
ONCE WE SEE THOSE RATES COME DOWN, THEN THAT WILL SPREAD TO THAT SEGMENT.
PEOPLE WILL START MOVING UP AGAIN.
AND THE FORECAST, UM, THE FEDERAL RESERVE BOARD PUBLISHED ITS, UH, FEDERAL OPEN MARKET COMMITTEE FINDINGS, WHICH ARE 23 FORECASTS THAT ARE GO, THAT GO OUT, UH, THE NEXT COUPLE OF YEARS BY PROFESSIONALS AND THAT THEY HAVE ON STAFF.
AND THAT IF THEY, IF THEY ATTAIN THAT INFLATION RATE OF CORE INFLATION OF 2%, I BELIEVE MORTGAGE RATES WILL BE FOUR POINT A HALF.
AND IF YOU HAD TO GUESS, WOULD YOU SAY THIS IS THREE YEARS FROM NOW OR MORE THAN A YEAR? HALF THIS DECEMBER OF, UH, 24.
AND THE KEY IS THAT THEY MAKE, THEY MAKE CONSISTENT PROGRESS BECAUSE THINGS WERE GOING REAL WELL.
AND THEN IN MARCH, THIS HUGE EMPLOYMENT JUMP, AND IT KIND OF THREW EVERYTHING OUT OF KILTER.
THE, WE NEED TO SEE THINGS MOVE CONSISTENTLY, AND THEN ONCE THAT IS THERE, IT IT'LL GAIN, IT'LL GAIN MOMENTUM.
SO YOU'D SAY, THEN YOU SEE, SO THOSE FOLKS THAT ARE KIND OF, LIKE I SAID, LOCKED IN, ARE GONNA BE COMPETING AGAINST HIGHER PRICES.
SO WE'RE GONNA SEE PROBABLY CONSTRAINED INVENTORY IN YOUR OPINION THEN FOR THE FORESEEABLE FUTURE.
BECAUSE RIGHT NOW, SEE THERE'S NOT A TON OF TRANSACTIONS, BUT A LOT OF THAT'S 'CAUSE THERE'S JUST NOT A LOT OF INVENTORY OUT THERE.
SO THERE'S MORE BUYERS THAN THERE ARE SELLERS, EVEN THOUGH THE PRICES ARE STILL SO HIGH.
SO YOU DON'T REALLY SEE ANYTHING UNLOCKING, UM, THE SUPPLY IN THE NEAR TERM.
I THINK THERE WILL BE AN INCREMENTAL EFFECT AS MORTGAGE RATES COME DOWN, BUT I THINK WHEN IT GETS TO THAT FOUR AND A HALF, IT'LL BE A VERY SIGNIFICANT INCREMENTAL IMPACT.
ANOTHER THING THAT I KNOW A LOT OF PEOPLE IN MY INDUSTRY ARE LOOKING IN THE HORIZON AND, UH, WHERE WE'VE BEEN HEARING, YOU KNOW, THE BIG ONES COMING FOR A LONG TIME IS, AND I CAN TELL YOU PERSONAL OPINION, IT JUST SEEMS LIKE WE'VE HAD STEADY AT THE FIRST AND THEN EXTREME GROWTH SINCE ABOUT, SAY 2012, 2013, ONCE WE KIND OF SAW THAT THE GREAT RECESSION WAS IN THE REAR VIEW MIRROR, IT'S JUST BEEN A CONSTANT CHURN UP, UP, UP, UP.
AND SO A LOT OF PEOPLE, YOU KNOW, EVERY YEAR HAVE BEEN, UH, SKEPTICAL, BUT PRICES STILL CONTINUE TO RISE, WHICH IS IN INCREDIBLE.
UM, FOR INSTANCE, UH, THAT HOME THAT I PURCHASED IN 2010, SO WHEN THINGS WERE PRETTY ROUGH, I SPENT $393,000 ON, UM, WHICH IS 12, 13 YEARS AGO, A HOME IN MY STREET JUST SOLD FOR $895,000.
UH, WHICH IS INCREDIBLE, INCREDIBLE IN, IN THAT SHORT A SPAN.
AND SO WHAT PEOPLE ARE DOING IS LOOKING AT THE HORIZON SAYING, WHAT'S THE NEXT THING THAT'S GONNA HAVE A SIGNIFICANT IMPACT, UH, ON THE HOUSING MARKET TO DRIVE PRICING DOWNWARDS? WHERE A LOT OF PEOPLE THOUGHT IT WAS GONNA BE THE RATES IF THEY, THEY SAID, WAIT, WAIT, RATES WILL GO TO 7% AND YOU'RE GONNA SEE PRICES CRATER, BUT THEY HAVEN'T DONE THAT.
AND SO I WONDER IF YOU HAVE ANY, 'CAUSE IT DOESN'T SEEM LIKE WE HAVE THE SAME SITUATION GOING INTO 2008 WHERE THERE'S A BUNCH OF CREATIVE MORTGAGES AND ADJUSTABLE RATES AND SUBPRIME THAT EVENTUALLY IS GONNA COLLAPSE.
SO DO YOU SEE ANY STRATEGIC WEAKNESSES OUT THERE IN THAT'S GONNA CAUSE SIGNIFICANT PRICE DROPS? IT'S TOUGH BECAUSE, UH, SUPPLY IS LOW, BUT THE HIGH MORTGAGE RATES COST DEMAND TO ALSO BE LOW.
BUT, UM, YOUR POINT OF CREATIVE FINANCING GOT TOO MANY PEOPLE INTO HOMES INAPPROPRIATELY, RIGHT? MM-HMM.
AND TO GET TO THE NORMAL TURNOVER, WE HAVE TO GET MORTGAGE RATES THAT ARE CLOSE TO WHAT THOSE PEOPLE HAVE.
I GUESS THE LAST QUESTION I'LL HAVE OF, I'M TAKING UP LOT OF YOUR TIME, IS WHAT IMPACT DO YOU SEE AND IN THE NEXT PRESIDENTIAL ELECTION AND THE ADMINISTRATION HAVING TO PUT PRESSURE ON THE FEDERAL RESERVE TO HAVE RATES IN A WAY THAT WILL MAKE THE ECONOMY MOVE ROBUSTLY AND,
[01:15:01]
YOU KNOW, FAVOR THE INCUMBENT OR FA OR, OR SOMEONE WHO'S RUNNING FOR, UH, UH, ELECTION.WHAT I'M WORRIED ABOUT IS THAT THERE'S WAY TOO MUCH INTERFERENCE IN POLITICS NOW IN THE INTEREST RATE.
AND I WONDER WHAT YOUR OPINION IS RIGHT NOW.
I THINK THAT PEOPLE, UH, IN, IN THE BOTH ADMINISTRATIONS PUT PRESSURE ON ECONOMISTS TO CREATE A FAVORABLE OUTCOME IN THE SHORT TERM TO BENEFIT THEM.
AND I WONDER IF YOU THINK THAT THERE'S A LOT OF POLITICIZATION OF THE FED? UH, I THINK GENERALLY THERE'S A LOT OF POLITICAL, UH, POLITICAL PERSPECTIVES TO HAVE THE FED BE MORE, UH, EXPANSIONARY.
I'M SURPRISED WHERE WE ARE NOW THAT WE HAVEN'T SEEN AS MUCH AS WE'VE SEEN PREVIOUSLY.
NORMALLY THERE WOULD BE A LOT OF PRESSURE WITH RATES GOING UP ABOVE 6%
OH, YOU MAYOR, YOU'RE WELCOME.
ANYONE ELSE? I JUST WANT TO THANK YOU FOR THIS VERY COMPREHENSIVE REPORT, AND IT GIVES US, AS A COUNCIL WHAT TO LOOK AT FOR OUR CITY.
AND WHERE SHOULD WE SHOULD BE, UM, PLACING OUR FUTURE IN DEVELOPMENT.
WAS IT RESIDENTIAL? IS IT COMMERCIAL? IS IT WAREHOUSE DEVELOPMENT? WHERE ARE WE GOING TO GET THE MOST PER ACRE? WE'VE HAD SOME ANALYSIS ABOUT THE SMALLER THE ACRE GOING UP WHERE, SO WE COULD HAVE SOME PURPLE SPIKES, AND THAT'S WHERE THEIR TRUE ECONOMIC DEVELOPMENT IS GOING TO BE IN OUR CITY.
SO THIS REALLY GIVES US A LOT OF INFORMATION AS, AS WE MOVE FORWARD.
MY QUESTIONS WERE SIMILAR TO WHAT, UM, COUNCIL MEMBER HUTCHINSON MENTIONED ABOUT, YOU KNOW, WHEN ARE HOME GOING TO BE AFFORDABLE AGAIN, IN TERMS OF INTEREST RATES.
WHAT I THINK I HEARD YOU SAY IS THAT INTEREST MAY, RATES MAY DROP, HOWEVER, THE PRICE OF HOMES MAY NOT BE AS QUICK TO FOLLOW ONCE THE PRICE, ONCE THE MORTGAGE RATES GO DOWN AND, AND THE, THE SUPPLY WILL START TO GO BACK TO WHAT WE'VE SEEN TRADITIONALLY, THAT FIRST GRAPH WHERE THE SUPPLY WAS THREE TIMES AS HIGH AS DEMAND.
IT'S NOT GONNA GET THERE IMMEDIATELY.
BUT WHEN WE HAVE THAT, THEN THE MARKET WILL BE ABLE TO ADJUST ACCORDINGLY.
AND I'M VERY WORRIED ABOUT THE FUTURE FOR OUR PEOPLE WHO ARE ENTERING THE HOME HOUSING MARKET FOR THE FIRST TIME.
PEOPLE WHO ARE COMING OUT OF COLLEGE, GETTING THEIR, THEIR FIRST JOBS, PARENTS WHO HAVE HOPES THAT THEIR CHILDREN ARE GOING TO MOVE OUT OF THEIR HOUSE AND GET THEIR OWN HOME AND BE ABLE TO AFFORD THAT.
AND SO, ESPECIALLY WHEN YOU'RE MAKING A VERY, UM, GOOD SALARY FOR, UM, A FIRST TIME HOMEOWNER OR, UM, TEACHERS, UM, NURSES, PEOPLE IN, UM, PUBLIC SAFETY, IT, IT DOES MAKE IT DIFFICULT EVEN IN A TWO FAMILY HOME.
AND SO THOSE ARE THE PEOPLE WE WANT IN OUR COMMUNITIES, AND WE HOPE THAT WE CAN HAVE HOUSING THAT THEY CAN AFFORD.
SO YOU'RE SAYING TWO YEARS, ANYONE ELSE? WELL, I, I, I WILL CONFESS, UM, I FEEL LIKE I'M A WHOLE LOT OLDER THAN I, I, I, WHEN I MET THE DOCTOR THIS EVENING, 'CAUSE HE HELPED OUR FIRE DISTRICT FORM CCF D 88 DASH ONE.
UH, AND, UH, I, I CAN TELL YOU, DOCTOR, I CAN'T TELL YOU HOW MUCH JOSEPH I'VE APPRECIATED THIS REPORT.
MY FRUSTRATION IS IN TWO AREAS.
ONE, YOU KNOW, OUR STATE OF CALIFORNIA, WE SAY, I'VE LOOKED AT THE HOUSING MARKET AND HOW, HOW IT'S DROPPING NEW STARTS FOR, FOR SINGLE FAMILY HOMES.
UM, AND YET OUR STATE HUD CONTINUES TO REQUIRE RENA REQUIREMENTS ON HOW MANY HOMES THE CITY'S SUPPOSED TO BUILD.
INTEREST RATES ARE HIGH, NO DEVELOPER'S GONNA BE BUILDING SINGLE FAMILY DWELLINGS UNTIL THEY KNOW THEY HAVE A MARKET TO BE ABLE TO SELL 'EM.
SO IT'S JUST, IT'S BEEN VERY CHALLENGING.
UM, I DON'T HAVE ALL THE ANSWERS, BUT THIS, THESE GRAPHS ARE GONNA BE VERY, VERY USEFUL FOR OUR STAFF AND FOR US.
UM, WHAT IS ABOUT A YEAR AND A HALF, TWO YEARS AGO NOW, WE WERE ONE OF THE FIRST CITIES TO STOP, UM, OUR REI OUR WAREHOUSE DEVELOPMENT, CREATING A MORATORIUM FOR A SHORT PERIOD OF TIME TO FIGURE OUT WHAT WE NEEDED TO DO IN THE SOUTHEAST QUADRANT OF OUR INDUSTRIAL AREA BECAUSE WE HAD A LOT OF ACTIVITY WANTING TO BUILD WAREHOUSES.
AND IT IS STILL A LITTLE FRUSTRATING WHEN YOU LOOK AT WHAT A ACRE OF LAND CAN DO FOR VALUE BACK TO THE CITY TO HELP BOLSTER OUR GENERAL FUND BUDGET.
AND YOU PUT MILLION, 4 MILLION SQUARE FEET OF, OF, OF, UH, WAREHOUSE DEVELOPMENT AND THINK ABOUT ALL THE PARKING THAT NEEDS TO GO ALONG WITH THAT AND TRUCK ACCESS.
UM, THAT'S A LOT OF ACREAGE USED UP THAT MIGHT BE BETTER UTILIZED IN SOME OTHER WAY.
BUT I, I UNDERSTAND THE PRESSURES BECAUSE NOW EVERYBODY'S STARTING TO TALK ABOUT, OH, THE POLLUTION, WE, WE CAN'T HAVE IT HERE, OR WE DON'T WEAR WHAT WAREHOUSES
[01:20:01]
HERE.AND SO THEY'RE, THEY'RE MOVING AROUND LOOKING FOR THE BEST PLACES THAT THEY COULD BUILD HERE IN THE INLAND EMPIRE.
AND CERTAINLY, UH, WE NEED TO BE, UH, COGNIZANT OF THAT TO MAKE SURE THAT WE'RE, WE'RE, WE'RE ATTRACTING THE RIGHT KIND OF BUSINESS THAT WILL HELP SUSTAIN OUR COMMUNITY OVER THE LONG TERM.
UM, AND I, I UNDERSTAND ABOUT EMPLOYMENT AND AUTOMATION AND EVERYTHING ELSE, AND HOW THAT THE EMPLOYEES THAT ARE WORKING WAREHOUSES TODAY MIGHT BE SOMETHING TOTALLY DIFFERENT 10 YEARS FROM NOW, THEY MIGHT NOT NEED, UH, BUT A THIRD OF THE EMPLOYEES THAT THEY'RE EMPLOYING TODAY.
SO, UM, WANT TO THANK YOU FOR YOUR REPORT.
IT WAS VERY WELL DONE, VERY WELL PUT TOGETHER AND VERY EASILY UNDERSTOOD FOR SOMEBODY LIKE ME THAT CAN'T FOLLOW NECESSARY GRAPHS AND CHARTS, BUT YOUR EXPLANATIONS WERE EXCEPTIONAL.
WELL, WELL, WELL, THANK YOU VERY MUCH.
IT'S, IT'S TRULY GRATIFYING TO HEAR, UH, YOUR COMMENTS AND YOUR QUESTIONS AND YOUR REMARKS.
MY GOAL WAS TO HELP HERE AND, UH, I, I HOPE I GOT SOMETHING STARTED IN THAT DIRECTION AND, UH, IT'S BEEN 35 GREAT YEARS FOR ME IN DEALING WITH THE CITY.
AND IT, IT'S A WONDERFUL CITY.
WE HAVE OVER, WE, WE'VE DEALT WITH OVER 75 PUBLIC ENTITIES IN SOUTHERN CALIFORNIA OF ALL TYPES.
AND YOUR CITY HAS GREAT MAN, GREAT LEADERSHIP, GREAT MANAGEMENT, AND, AND IT'S REFLECTED THROUGHOUT THE CITY WITH HOW WELL DEVELOPMENT HAS OCCURRED.
YOU STILL LIVING ON, ON CAMINO CAPISTRANO? YES.
OKAY, UH, THAT BRINGS US TO THE NEXT ITEM ON OUR AGENDA.
AND THAT IS, UM, UH, LET'S SEE, WHERE ARE WE AT? QUARTERLY UPDATE OR IS THAT NO, NO, NO, NO, NO.
JANIK REPORT, UM, AS YOU KNOW, MAYOR, WE HAD COMMITTED, UH, TO, TO TRY AND GIVE A REGULAR, IN ADDITION TO THE REGULAR BUDGET UPDATE THAT WE DO GIVE A, A DEVELOPMENT UPDATE.
AND SO I WANNA HAVE MATT MARQUEZ, OUR, OUR PLANNING AND ECONOMIC DEVELOPMENT DIRECTOR, AND ZACH NABORS, OUR DEPUTY DIRECTOR OF BUILDING AND SAFETY, UH, GIVE YOU AN UPDATE ON WHERE WE ARE WITH DEVELOPMENT SO FAR.
GOOD EVENING AGAIN, UH, MAYOR, MEMBERS OF THE COUNCIL CITY MAN, AS THE CITY MANAGER MENTIONED, UH, WE'RE COMING BACK TO YOU WITH A QUARTERLY DEVELOPMENT UPDATE.
UM, FIRST ONE THAT WE GAVE YOU WAS LAST QUARTER.
AND, UH, OUR INTENTION IS TO CONTINUE TO DO THIS, UH, MOVING FORWARD.
THE, THE FORMAT, THE CONTENT, UH, OF THESE PRESENTATIONS WE'LL CHANGE AND EVOLVE, UH, AS WE CONTINUE TO GROW AS AN ORGANIZATION AND EVOLVE AS WELL.
UM, WE, UH, CONTINUE TO REMAIN BUSY AND THAT'S AN UNDERSTATEMENT.
UM, NOT ONLY IN PLANNING AND ECONOMIC DEVELOPMENT AND BUILDING, BUT ALL OF OUR COLLEAGUES AS WELL.
UM, OVER THIS LAST QUARTER, 65 APPLICATIONS SUBMITTED TO PLANNING AND ECONOMIC DEVELOPMENT, UM, OVER 350 COUNTER VISITS, UH, 660 PHONE CALLS.
AND WE MAINTAIN 'EM ROUGHLY 20 MAJOR PROJECTS, UH, IN THE PIPELINE.
AND THOSE, AGAIN, ARE JUST MAJOR PROJECTS.
AND THESE NUMBERS ARE, ARE PRETTY SIGNIFICANT.
BUT WHEN YOU LOOK AT ZACH'S NUMBERS, YOUR EYES WILL OPEN PRETTY WIDE WHEN YOU SEE HOW MANY INSPECTIONS THEY'RE DOING CALLS, THEY'RE, THEY'RE FIELDING AND EVEN THE COMMUNICATION THAT THEY, UH, PROVIDE TO THE COMMUNITY VIA TEXT MESSAGES.
UM, BESIDES THE ACTIVITY AND THE PLANNING DIVISION, THE ECONOMIC DEVELOP ECONOMIC DEVELOPMENT DIVISION HAS ALSO, UH, GROWN AS, YOU KNOW, WITH SOME NEW TEAM MEMBERS AND ALSO IN THE WORK THAT WE'RE DOING.
SO, UM, IN THE MONTH OF MAY, WE CELEBRATED BUSINESS APPRECIATION MONTH.
UH, WE HIGHLIGHTED 20 BUSINESSES, UH, VIA SOME SOCIAL MEDIA POSTS, ONE OF WHICH YOU COULD SEE, UH, ON THE RIGHT HAND SIDE OF YOUR, YOUR SCREEN.
UH, WE ALSO HELD, UM, A BUSINESS APPRECIATION NIGHT AT, UH, QUAKE STADIUM, AND WE HANDED OUT OVER 292 OR 290 TICKETS, UH, FOR THAT EVENT.
SOME ADDITIONAL MARKETING COMMUNICATIONS THAT, UM, WE'VE WORKED ON OVER THE LAST FEW MONTHS INCLUDE, UH, RELEASING SOME NEWSLETTERS, UH, ONE OF WHICH IS A MONTHLY COMMUNITY AND ECONOMIC DEVELOPMENT E-NEWSLETTER THAT GOES TO ALMOST 4,000 FOLKS.
AND THEN ALSO WE'VE STARTED A REAL ESTATE PROFESSIONALS, UH, E-NEWSLETTER WITH OVER 170 SUBSCRIBERS.
UM, THOSE ARE MOSTLY FOLKS WHO DO BUSINESS OR HAVE DONE BUSINESS, UH, LOCALLY HERE, UH, IN THE COMMUNITY.
UH, THOSE FOLKS WERE ALSO INVITED TO PARTICIPATE IN A BROKER'S ROUNDTABLE, OUR FIRST, UM, TIME DOING THAT.
UH, OUR SECOND ONE IS ACTUALLY SCHEDULED FOR AUGUST 1ST AND
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JUST GIVES US AN OPPORTUNITY TO TALK TO THE LOCAL, UH, REAL ESTATE COMMUNITY, SHARE WITH THEM WHAT WE HAVE GOING ON IN THE CITY, AND ALSO FOR US TO HEAR, UH, WHAT THEY HEAR WHEN THEY'RE OUT AND ABOUT TALKING TO BUSINESSES AND TRYING TO MAKE, UH, DEALS HAPPEN.WE'VE ALSO PARTNERED WITH THE CHAMBER AND THE SMALL BUSINESS, UH, DEVELOPMENT CENTER TO, UH, HOLD A NUMBER OF DIFFERENT WORKSHOPS, UH, FOR DIFFERENT SMALL BUSINESSES.
UM, 14 FIRST TIME BUSINESS CONSULTING MEETINGS AND OVER 50, UM, CONSULTING MEETINGS, UH, CONDUCTED AS WELL.
UM, SO A LOT OF ACTIVITY IN BOTH PLANNING AND ECONOMIC DEVELOPMENT.
AND WITH THAT, I WILL TURN THE PRESENTATION OVER TO ZACH.
UH, MATT PAID US, UH, A BIG COMPLIMENT WITH BUILDING SAFETY.
WE DO HAVE SOME, UH, RATHER ROBUST NUMBERS.
SO THE BUILDING SAFETY DEPARTMENT HAS BEEN BUSY IN QUARTER TWO, THE ADMINISTRATIVE STAFF, UH, STAFF SERVICE 4,917 PHONE CALLS AND 3,432 TEXTING CONTACTS.
WHILE OUR INSPECTION STAFF CONDUCTED A LITTLE BIT, UH, A LITTLE BIT BELOW 3,900 INSPECTIONS, THE, UH, PERMIT TECH STAFF ISSUED OVER 1500 BUILDING PERMITS AND THE PLAN CHECKS STAFF TOOK IN A LITTLE UNDER 1500 NEW PLAN CHECKS.
UH, THERE WERE 131 NEW HOUSING UNITS FINALIZED ALONG WITH 47 NEW CONSTRUCTION PERMITS, UM, ON OUR BUILDING ACTIVITY UNDER NEW CONSTRUCTION AND ONGOING CONSTRUCTION.
THE SANCTITY HOTEL, WHICH IS A 68 ROOM BOUTIQUE HOTEL, LOCATED AT 1 2 2 5 BASELINE HAS NOW RISEN IN QUARTER TWO AND IS FRAMED TO THE ROOF LEVEL, WHICH IS VERY EXCITING.
UH, WE HAVE A SMALL 15,700 SQUARE FOOT, UH, CONCRETE TILT UP AT 9 3 2 5 FARRON BOULEVARD LOCATED ACROSS THE STREET FROM OUR PUBLIC WORKS YARD.
IT'S NEARING COMPLETION AND IS AT THE BEGINNING, UH, IS BEGINNING TO COMPLETE THEIR HARDSCAPE AND FINAL IMPROVEMENTS AND 8,500 HAVEN AVENUE.
THE HAVEN AND ARROW PROJECT, WHICH IS A MIXED USE BUILDING CONSISTING OF 248 APARTMENT UNITS AND 24,000 SQUARE FEET OF COMMERCIAL SPACE HAS BEEN ISSUED ITS DEMOLITION PERMIT AND HAS BEGUN WORK ON THE DEMOLITION AND CLEARING OF THE SITE, UH, IN THE RESIDENTIAL REALM.
THE CORE PROJECT LOCATED ON THE CORNER OF FOOTHILL AND EAST HAS MADE SIGNIFICANT PROGRESS IN QUARTER TWO AND IS NEARING COMPLETION.
AND STARTING TO, UH, REACH OUT IN QUESTIONS OF CERTIFICATE OF OCCUPANCY OR OCCUPANCY OF SOME TYPE.
HOMECOMING AT THE RESORT HAS MADE SIGNIFICANT PROGRESS AS WELL AND HAS NOW COMPLETED AND POURED ALL THE FOUNDATIONS FOR THE MULTIFAMILY BUILDINGS ON THE SOUTHWEST, UH, SIDE OF THE PROJECT.
THE ALTE COVE PROJECT LOCATED ON THE CORNER OF FOOTHILL IN AWANDA, HAS MADE PROGRESS AND IS NOW PREPARING THE PODIUM DECK, WHICH WOULD BE THE TOP OR SERVE AS THE TOP OF THE TRAINING PARKING STRUCTURE, AS WELL AS SERVE AS THE FOUNDATION FOR THE COMMERCIAL SPACE AND THE 260 APARTMENT UNITS.
AND THE WESTBURY, UH, APARTMENTS LOCATED ON THE CORNER OF FOOTHILL AND EAST HAS ALSO MADE SIGNIFICANT PROGRESS IN CORNER TWO AND ARE WORKING TOWARDS OCCUPANCY OF THEIR LEASING OFFICE AND CLUBHOUSE, UH, ALL THE WHILE IN QUARTER TWO.
PRIOR TO BUSINESSES OPENING, UH, BUILDING STAFF NEEDS TO INSPECT INTO APPROVED FOR OCCUPANCY.
SOME OF THE BUSINESSES APPROVED FOR OCCUPANCY DURING QUARTER TWO ARE SHOWN ON THE SLIDE, WHICH INRE, UH, WHICH INCLUDE THE GREAT GREEK MEDITERRANEAN GRILL LOCATED AT 1 1 9 9 5 FOOTHILL.
MARTIN'S, UH, OR DOC MARTIN'S STORE LOCATED AT 7 8 0 2 Q AVENUE AND ALSO WET PAINT STUDIOS, WHICH IS LOCATED AT 1 2 3, 3 5 BASELINE ROAD.
UH, SO SOME EXCITING PROJECTS THERE THAT, UH, HAVE GOTTEN THEIR CERTIFICATE OF OCCUPANCY.
AND WITH THAT, THAT ENDS OUR PRESENTATION.
AND ME AND MATT ARE AVAILABLE FOR ANY QUESTIONS OR CONCERNS YOU MAY HAVE.
QUESTIONS OF STAFF, UH, WHAT DO YOU DO WITH YOUR FREE TIME?
I'LL TELL YOU WHAT, THAT'S A LOT OF WORK GOING ON WITH.
I KNOW I'VE, I'VE, I'VE A GREAT DEAL OF WORK BY OUT A WHOLE LOT OF DEDICATED STAFF MEMBERS, SO WE THANK YOU ON BEHALF OF OUR COUNCIL FOR ALL THE HARD WORK THAT YOU PUT IN.
TRULY DO DO APPRECIATE IT VERY MUCH.
OKAY, WE WILL NOW MOVE ON TO OUR NEXT ITEM OF BUSINESS, AND THAT'S GONNA BE COUNCIL BUSINESS.
AND I'LL TURN THAT OVER TO, UM, WE HAD TWO SUBCOMMITTEE MEMBERS MAKE, UH, HAVE INTERVIEWS FOR OUR LIBRARY BOARD, AND THAT WAS MAYOR PRO TEM LYNN KENNEDY AND COUNCILWOMAN CHRISTINE SCOTT.
I DON'T KNOW WHICH ONE CHRISTINE WOULD, ARE YOU, WERE YOU PLANNING ON DOING THE REPORT OR, OR MAYOR PRO TEM CHRISTINE, GO AHEAD.
SO, AS YOU HAD STATED, WE HELD A LIBRARY SUBCOMMITTEE ABOUT A MONTH OR TWO AGO.
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SEEMS LIKE IT WAS YESTERDAY.AND I WAS VERY IMPRESSED BECAUSE WE ACTUALLY HAD A LOT OF APPLICANTS THAT APPLIED TO SERVE ON THE LIBRARY BOARD OF TRUSTEES.
SO THANK YOU AGAIN TO ALL THE RESIDENTS THAT EXPRESSED INTEREST IN IT.
IT WAS REALLY A, A TOUGH DECISION THIS TIME AROUND SOME GREAT CANDIDATES.
BUT THE LIBRARY SUBCOMMITTEE DID RECOMMEND TO APPOINT, UH, CHRISTINE DE RICE AND LAUREL RICE TO A THREE-YEAR TERM ENDING ON JUNE 30TH, 2026.
AND WE ARE ACTUALLY GOING TO APPOINT WILLIAM DROCK, UH, TO FILL AN UNSCHEDULED VACANCY FOR AN UNEXPIRED TERM ENDING ON JUNE 30TH, 2024 ON THE LIBRARY BOARD OF TRUSTEES.
DO I HAVE A MOTION TO THAT EFFECT? 'CAUSE YOU READ THE MOTION PERFECTLY.
AND THE NEXT ITEM FOR COUNCIL BUSINESS IS DESIGNATION OF VOTING DELEGATES AND ALTERNATIVE ALTERNATES, NOT ALTERNATIVES AND ALTERNATES FOR MAYBE THE ARE ALTERNATIVE, UH, FOR THE LEAGUE OF CALIFORNIA CITY'S ANNUAL BUSINESS MEETING COMING UP IN THIS SEPTEMBER.
SO MR. GILLISON, MR. MAYOR AND MEMBERS OF THE COUNCIL.
SO, AS YOU KNOW, EVERY YEAR, CAL CITIES HOLDS ITS ANNUAL MEETING.
UM, AND THERE ARE, AND WE DON'T HAVE THEM YET, UH, BUT WE, WE SHOULD SHORTLY, BUT EVEN AT THE LAST MINUTE, SOMETIMES THERE MAY BE ITEMS, UM, FOR THE, THE DELEGATION FOR THE, THE BODY, UH, UH, TO VOTE ON, IF YOU WILL.
AND SO THE LEAGUE PROCESS, OR CAL CITY'S PROCESS IS ALWAYS THEY ASK EACH CITY TO APPOINT A MAIN DELEGATE.
YOU HAVE TO BE ABLE TO STAY, UM, FOR THE GENERAL MEETING WHEN THE RESOLUTIONS IN THAT ARE PRESENTED.
AND THEN THEY ALWAYS ASK THAT THERE BE AN ALTERNATE IN THE EVENT THAT SOMETHING COMES UP OVER THE YEARS.
AT VARIOUS TIMES IT'S BEEN TWO COUNCIL MEMBERS.
SOMETIMES IT'S A COUNCIL MEMBER AND A STAFF MEMBER.
UM, THAT STAFF MEMBER, UM, MOST OFTEN IF IT HAPPENS IS SOMEONE IN THE CITY MANAGER'S OFFICE.
UH, SO IT JUST DEPENDS AND IT'S, IT'S PURELY AT THE COUNCIL'S DISCRETION, DEPENDING ON WHO'S GOING AND WHO'S INTERESTED IN DOING THAT.
UM, THEY HAVE REVISED THE PROCESS THIS YEAR.
UM, WE SHOULD HOPEFULLY, UM, AVOID, UM, SOME OF THE JERRY SPRINGER ENTERTAINMENT VALUE OF THE LAST FEW YEARS AND HAVE IT RUN MORE LIKE A BUSINESS MEETING AND, UM, NOT BE THE VERY LAST THING BETWEEN ALL OF THE DELEGATES AND THEIR AIRPLANE FLIGHT.
UM, SO, UH, HOPEFULLY THINGS WILL RUN SMOOTHER THIS YEAR, BUT THE CITY DOES NEED TO TAKE AN ACTION AND APPOINT A DELEGATE AND AN ALTERNATE.
WELL, I THINK, IF I'M NOT MISTAKEN, ALL OF THE COUNCIL MEMBERS ARE ALL OF, ALL OF US ARE GOING.
SO WHO WOULD LIKE TO, UM, BE THE PRIMARY VOTING DELEGATE? OKAY.
IS IT APPROPRIATE FOR ME TO VOLUNTEER AS A VOTING DELEGATE SINCE I'M ALSO ON THE BALLOT? UH, YEAH, BECAUSE IT'S NOT ABOUT THE BALLOT FOR ELECTION OF THE NEW BOARD.
IT'S ONLY FOR THE RESOLUTIONS COMMITTEE.
RIGHT, DON? UH, IT'S ONLY FOR THE RESOLUTIONS COMMITTEE.
SO THEN I WOULD LIKE TO DO IT.
AN ALTERNATE I WOULD LIKE TO SERVE AS AN ALTERNATE AND RYAN, I'D LIKE TO MAKE THE MOTION TO PRESENT LYNN KENNEDY AS THE MAIN DELEGATE.
CHRISTINE SCOTT IS THE ALTERNATE DELEGATE FOR THE CAL CITIES CONFERENCE.
DO WE NEED A THIRD ONE? I'LL SELECT IT.
UM, I'LL SERVE AS THE THIRD DELEGATE.
I'D LIKE TO AMEND MY MOTION TO MAKE MARRIED L DENNIS MICHAEL THE THIRD OR THE SECOND ALTERNATE FOR THE CAL CITY CONFERENCE? WELL, MAYBE ALTERNATE, MAYBE ALTERNATIVE.
YOU CAN BE THE ALTERNATE TO THE ALTERNATIVE.
SO, UH, MOTION HAS BEEN MADE AND SECONDED.
ANY COUNCIL ANNOUNCEMENTS OR INTER-AGENCY UPDATES? SEEING NONE.
ANY CITY ATTORNEY ITEMS? NOTHING TONIGHT, MR. MAYOR.
MR. ATTORNEY, I IDENTIFICATION FOR NEXT MEETING, WHICH IS GONNA BE ON AUGUST THE SECOND.
LADIES AND GENTLEMEN, WE STAND ADJOURNED.
THANK YOU FOR ATTENDING THIS EVENING.