Agenda packet — El Cajon City Council, June 28, 2022

CITY COUNCIL

HOUSING AUTHORITY AND

SUCCESSOR AGENCY TO THE EL CAJON

REDEVELOPMENT AGENCY
Council Chamber
200 Civic Center Way
El Cajon, CA 92020
Agenda
JUNE 28, 2022, 3:00 p.m.

Bill Wells, Mayor Graham Mitchell, City Manager
Michelle Metschel, Deputy Mayor Vince DiMaggio, Assistant City Manager Steve Goble, Councilmember Morgan Foley, City Attorney
Gary Kendrick, Councilmember Angela Cortez, City Clerk
Phil Ortiz, Councilmember
CALL TO ORDER: Mayor Bill Wells
ROLL CALL: City Clerk Angela Cortez

PLEDGE OF ALLEGIANCE TO FLAG AND MOMENT OF SILENCE
POSTINGS: The City Clerk posted Orders of Adjournment of the June 14, 2022, Meeting and the Agenda of the June 28, 2022, Meeting in accordance to State Law and Council/Authority/Successor Agency to the Redevelopment Agency Policy.

PRESENTATIONS:

Bike to Work Event Results
AGENDA CHANGES:
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CONSENT ITEMS:

Consent Items are routine matters enacted by one motion according to the RECOMMENDATION listed below. With the concurrence of the City Council, a Council Member or person in attendance may request discussion of a Consent Item at this time.

1. Minutes of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Meeting

RECOMMENDATION:

That the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency approves Minutes of the June 14, 2022, Meeting of the El Cajon City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency.

2. Warrants
RECOMMENDATION:

That the City Council approves payment of Warrants as submitted by the Finance Department.

3. Approval of Reading Ordinances by Title Only
RECOMMENDATION:

That the City Council approves the reading by title and waives the reading in full of all Ordinances on the Agenda.

4. Contract Amendments for Street Sweeping Services

RECOMMENDATION:

That the City Council adopts the next Resolution, in order, to authorize amendments to the existing agreement for Street Sweeping Services with Cannon Pacific Services, LLC dba Pacific Sweeping (PS), in order to:

Approve the retroactive payment of prevailing wages in an amount not to exceed $150,000; and

1. Extend the term of the agreement from July 1, 2022 through and including June 30, 2023, and increase the Street Sweeping Services Contract in an amount not to exceed $160,000.

2. PUBLIC COMMENT:

At this time, any person may address a matter within the jurisdiction of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency that is not on the Agenda. Comments relating to items on today’s docket are to be taken at the time the item is heard. State law prohibits discussion or action on items not on the Agenda; however, Council, Authority and Agency Members may briefly respond to statements or questions. An item may be placed on a future Agenda.

WRITTEN COMMUNICATIONS:

PUBLIC HEARINGS:

5. Fiscal Year 2022-23 Annual City, Housing Authority, and Successor Agency Budgets

RECOMMENDATION:

That the City Council, Housing Authority, and the City of El Cajon as Successor Agency to the former Redevelopment Agency hold a joint public hearing to consider the Fiscal Year 2022-23 Proposed Budgets. After closing the public hearing, staff recommends the following:

Acting as the City Council, individually adopt the following:

Resolution of the City of El Cajon Adopting the Fiscal Year 2022-23 Annual Budget.
a.

Resolution Approving and Adopting the Annual Appropriations Limit for Fiscal Year 2022-23.
b.

Resolution Approving Designation of General Fund Balances.c.

1. Acting as the Housing Authority Board of Directors, adopt Resolution titled: Resolution of the El Cajon Housing Authority Adopting the Fiscal Year 2022-23 Budget.

2. Acting as the Successor Agency to the former Redevelopment Agency Board of Directors, adopt Resolution titled: Resolution of the City Council of the City Of El Cajon as the Successor Agency to the former El Cajon Redevelopment Agency Adopting the Fiscal Year 2022-23 Budget.

3. ADMINISTRATIVE REPORTS:

6. Veterans Memorial Update

RECOMMENDATION:

That the City Council receives the report and provides feedback to staff.

7. Introduction of an Ordinance Amending Chapter 2.16.020 of the El Cajon Muncipal Code Regarding Salaries of Councilmembers and Mayor and a Resolution Adjusting the Cafeteria Benefit Allotment

RECOMMENDATION:

That the City Council considers:

Introducing an Ordinance amending Chapter 2.16.020 of the El Cajon Municipal Code (ECMC) related to salaries of Councilmembers and Mayor, and directs the City Clerk to read the title of the Ordinance; and

1. Adopting the next Resolution, in order, adjusting the cafeteria benefit allotment from $1,200 per month to $1,350 per month, effective January 2023, for Mayor and City Councilmembers.

2. 8. El Cajon Economic Development Strategic Plan

RECOMMENDATION:

That the City Council adopts the next Resolution, in order, approving the El Cajon Economic Development Strategic Plan.

COMMISSION REPORTS:

ACTIVITIES REPORTS/COMMENTS OF MAYOR WELLS
SANDAG (San Diego Association of Governments) Board of Directors; SANDAG – Audit Committee, San Diego Division; LAFCO.

9. Council Activity Report

ACTIVITIES REPORTS/COMMENTS OF COUNCILMEMBERS:

10. COUNCILMEMBER STEVE GOBLE
MTS (Metropolitan Transit System Board); East County Advanced Water Purification Joint Powers Authority Board; Chamber of Commerce – Government Affairs Committee; SANDAG – Board of Directors – Alternate; SANDAG Public Safety Committee – Alternate; METRO Commission/Wastewater JPA – Alternate.

11. COUNCILMEMBER GARY KENDRICK
METRO Commission/Wastewater JPA; Heartland Communications; Heartland Fire Training JPA.

12. DEPUTY MAYOR MICHELLE METSCHEL
Harry Griffen Park Joint Steering Committee; Heartland Communications – Alternate; Heartland Fire Training JPA – Alternate.

13. COUNCILMEMBER PHIL ORTIZ
League of California Cities, San Diego Division; East County Economic Development Council; MTS (Metropolitan Transit System Board) – Alternate; East County Advanced Water Purification Joint Powers Authority Board – Alternate; Chamber of Commerce – Government Affairs Committee – Alternate.

JOINT COUNCILMEMBER REPORTS:

GENERAL INFORMATION ITEMS FOR DISCUSSION:

ORDINANCES: FIRST READING

ORDINANCES: SECOND READING AND ADOPTION

CLOSED SESSIONS:

14. Closed Session - Conference with Legal Counsel - Existing Litigation - pursuant to paragraph (1) of subdivision (d) of Government Code section 54956.9: Eric Bidwell, et al. v. City of El Cajon, et al.

United States District Court, Southern District of California Case No. 16-cv-2575-LL-MSB

ADJOURNMENT: The Adjourned Regular Joint Meeting of the El Cajon City Council/ El Cajon Housing Authority/Successor Agency to the El Cajon Redevelopment Agency held this 28th day of June 2022, is adjourned to Tuesday, July 12, 2022, at 3:00 p.m.

City Council
Agenda Report
Agenda Item 1.

DATE: June 28, 2022
TO: Honorable Mayor and City Councilmembers
FROM: Angela Cortez, City Clerk
SUBJECT: Minutes of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Meeting
RECOMMENDATION:

Attachments
06-14-22Draft minutes - 3PM

Joint Meeting: El Cajon City Council/Housing Authority/ June 14, 2022 Successor Agency to the Redevelopment Agency - 96 - 3:00 p.m.

JOINT MEETING OF THE

EL CAJON CITY COUNCIL/HOUSING

AUTHORITY/SUCCESSOR AGENCY

TO THE EL CAJON

REDEVELOPMENT AGENCY

MINUTES

CITY OF EL CAJON

EL CAJON, CALIFORNIA

June 14, 2022

A Regular Joint Meeting of the El Cajon City Council/Housing Authority/ Successor Agency to the El Cajon Redevelopment Agency, held Tuesday, June 14, 2022, was called to order by Mayor/Chair Bill Wells at 3:00 p.m., in the Council Chambers, 200 Civic Center Way, El Cajon, California.

R O L L C A L L
Council/Agencymembers present: Goble, Kendrick, and Ortiz Council/Agencymembers absent: None
Deputy Mayor/Vice Chair present: Metschel
Mayor/Chair present: Wells
Other Officers present: Mitchell, City Manager/Executive Director DiMaggio, Assistant City Manager
Foley, City Attorney/General Counsel
Cortez, City Clerk/Secretary

PLEDGE OF ALLEGIANCE TO FLAG led by Girl Scout Troop 5937 and MOMENT OF SILENCE. (The Courts have concluded that sectarian prayer, as part of City Council Meetings, is not permitted under the Constitution).

POSTINGS: The City Clerk posted Orders of Adjournment of the May 24 , 2022, meeting and the Agenda of the June 14, 2022, meeting in accordance with State Law and El Cajon City/Housing Authority/Su ccessor Agency to the El Cajon Redevelopment Agency Policy.

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Joint Meeting: El Cajon City Council/Housing Authority/ June 14, 2022 Successor Agency to the Redevelopment Agency - 97 - 3:00 p.m.

PRESENTATIONS: None

AGENDA CHANGES: None

CONSENT ITEMS: (1 – 12)

1. Minutes of El Cajon City Council/ Housing Authority/Successor Agency to the El Cajon Redevelopment Agency Meetings

Approve Minutes of the May 24, 2022, Meeting of the El Cajon City Council/ Housing Authority/Successor Agency to the El Cajon Redevelopment Agency.

2. Warrants

Approve payment of Warrants as submitted by the Finance Department.

3. Approval of Reading Ordinances by Title Only

Approve the reading by title and waive s the reading in full of all Ordinances on the Agenda.

PULLED FOR DISCUSSION:

4. 2021 Office of Emergency Services (CalOES) - Coverdell Forensic Science Improvement Grant Award

RECOMMENDATION:

That the City Council:

1. Authorizes the City Manager, or designee, to accept the 2021 Coverdell Forensic Science Improvement Grant in the amount of $52,033 and execute any grant documents and agreements necessary for the receipt and use of these fun ds; and

2. Appropriates funding to purchase a Foster & Freeman Uniform Polarized Light Tunnel and CSU mounting plate for $3,721, five (5) Microsoft Surface Pro 8 with Pen for $12,594, the Mideo Casework Crime Scene and JusticeTrax integration software for $33,460, and overtime funding of $2,258 for three (3) Forensic Evidence Technicians.

DISCUSSION

Councilmember Goble praised the ‘behind the scenes’ work of the Police Department.

Joint Meeting: El Cajon City Council/Housing Authority/ June 14, 2022 Successor Agency to the Redevelopment Agency - 98 - 3:00 p.m.

CONSENT ITEMS: (Item 4 - Continued)

1. Authorize the City Manager, or design ee, to accept the 2021 Coverdell Forensic Science Improvement Grant in the amount of $52,033 and execute any grant documents and agreements necessary for the receipt and use of these funds; and

2. Appropriate funding to purchase a Foster & Freeman Uniform Pol arized Light Tunnel and CSU mounting plate for $3,721, five (5) Microsoft Surface Pro 8 with Pen for $12,594, the Mideo Casework Crime Scene and JusticeTrax integration software for $33,460, and overtime funding of $2,258 for three (3) Forensic Evidence Technicians.

5. Accept the Fanita Drive Emergency Storm Damage Repair Project as complete

Adopt Resolution No. 044-22 to accept the Fanita Drive Emergency Storm Drain Project as complete, direct the City Clerk to record a notice of completion, and approve the final project cost.

6. Rejection of RFP No. 013-22 – Command Vehicle

Adopt Resolution No. 045-22 to reject the sole proposal.

7. January – March 2022 Quarterly Treasurer’s Report

Receive the Treasurer’s Report for the quarter ending March 31, 2022.

8. General Municipal Election - November 8, 2022

Adopt the following Resolutions in connection with the November 8, 2022, General Municipal Election:

1. Resolution No. 046 -22 calling and giving notice of the November 8, 2022, General Municipal Election for the election of Mayor, and one Member of the City Council of the City of El Cajon for District No. 1, for complete four -year terms to expire December 2026;

2. Resolution No. 047 -22 requesting the Board of Supervisors to consolidate the General Municipal Election with the Statewide General Election on November 8, 2022;

3. Resolution No. 048-22 adopting regulations for candidates calling for prepayment for a 200-word Candidate's Statement; and

4. Resolution No. 049 -22 adopting regulations to resolve a tie vo te for the City Council Election by lot.

Joint Meeting: El Cajon City Council/Housing Authority/ June 14, 2022 Successor Agency to the Redevelopment Agency - 99 - 3:00 p.m.

CONSENT ITEMS: (Continued)

9. Award of Bid No. 017-22 – Pedestrian Safety Improvements

Adopt Resolution No. 050 -22 to Approve Plans and Specifications for the Pedestrian Safety Improvements Project, Bid No. 017-22; Find the first low bidder, LB Civil Construction (LBCI), non -responsive for the reason set forth in the agenda report; and Resolution No. 051 -22 to award the bid to the lowest responsive, responsible bidder, Baker Electric & Renewables, LLC., in the amount of $209,576.

10. Water Safety Event Grant

Accept, appropriates, and expends grant funding for a water

11. Contract Amendment for Professional Building Support Services

Adopt Resolution No. 052 -22 to authorize an amendment to the existing Agree ment for Professional Services with Esgil, LLC to extend for one year in the annual amount of $300,000, with the option to renew for two additional one-year terms.

12. El Cajon Professional Firefighters' Association: Side Letter Limited to Clean-up

Approve and authorize the terms and conditions of the Limited Clean -up Side Letter Agreement between the City and the El Cajon Professional Firefighters' Association (ECPFF).

MOTION BY GOBLE, SECOND BY METSCHEL, to APPROVE Consent Items 1 to 12.

MOTION CARRIED BY UNANIMOUS VOTE.

PUBLIC COMMENT:

Bob Collins spoke about the homeless problem in the City.

Councilmember Goble shared with Mr. Collins about the many programs the City of El Cajon offers for homeless individuals.

Sameer Qasim spoke about the s truggle to get approvals from the C ity for one of his projects.

Khaleel Khaleed spoke about the same issues as Mr. Qasim, his father.

Joint Meeting: El Cajon City Council/Housing Authority/ June 14, 2022 Successor Agency to the Redevelopment Agency - 100 - 3:00 p.m.

WRITTEN COMMUNICATIONS: None

PUBLIC HEARINGS: None

ADMINISTRATIVE REPORTS:

13. Fiscal Year 2022-23 Preliminary Annual Budget

RECOMMENDATION:

That the City Council, Housing Authority, and the City of El Cajon as Successor Agency to the former Redevelopment Agency receives information related to the proposed Fiscal Year 2022-23 Preliminary Annual Budget.

DISCUSSION

Finance Director, Clay Schoen and Senior Management Analyst, Autumn Reberger, provided detailed information of the Item.

No public comment was received.

Discussion ensued among Council and Staff concerning the following:
 Sales tax increase;
 Pension obligation bonds;
 Electronic bill board;
 Budget reserves amount; and
 League of California Cities recommendation for Budget reserves amount;

MOTION BY ORTIZ, SECOND BY METSCHEL, to receive information related to the proposed Fiscal Year 2022-23 Preliminary Annual Budget.

MOTION CARRIED BY UNANIMOUS VOTE.

14. Compensation for Executive and Unrepresented Employees (A -29), City Manager and City Attorney

RECOMMENDATION:

That the Mayor provides an oral report summarizing recommended changes in compensation for the City’s “local agency executives” and, following the report, that the City Council:

1. Approves the changes to City Council Policy A -29 described below and reflected in the attachment; and

Joint Meeting: El Cajon City Council/Housing Authority/ June 14, 2022 Successor Agency to the Redevelopment Agency - 101 - 3:00 p.m.

ADMINISTRATIVE REPORTS: (Item 14 – Continued)

2. Adopts the next Resolutions, in order, to approve the amendments to the employment contracts with the city manager and city attorney, and authorizing the Mayor to execute the amendments, substantially in the forms as presented.

DISCUSSION

Human Resources Director, Marisol Thorn, provided detailed information of the Item.

Mayor Wells provided an oral report summarizing the recommended changes.

No public comment was received.

MOTION BY KENDRICK, SECOND BY METSCHEL, to APPROVE the
changes to City Council Policy A -29 described in the agenda report and reflected in the attachment; Adopt Resolution No. 053-22 to approve the amendments to the employment contract with the City Manager; Adopt Resolution No. 054 -22 to approve the amendme nts to the employment contract with the C ity Attorney, and aut horize the Mayor to execute the amendments, substantially in the forms as presented.

MOTION CARRIED BY UNANIMOUS VOTE.

15. Options for Incentivizing Development of a Vacant Property at the Southwest Corner of Greenfield Drive and E. Main Street

RECOMMENDATION:

That the City Council considers options for incentivizing the development of a vacant property at the southwest corner of Greenfield Drive and E. Main Street and provides direction to staff.

DISCUSSION

Councilmember Goble stated a conflict o f interest as he lives within a 300 ft. radius of the vacant property. Mr. Goble left the Council Chamber at 3:58 p.m.

Director of Community Development , Anthony Shute , provided detailed information of the Item.

Discussion ensued among Council and Staff concerning the following:
 Request from staff for general direction on the Item;  Options given in regards to the vacant property; and
 Property should be developed or sold by current owner.

Joint Meeting: El Cajon City Council/Housing Authority/ June 14, 2022 Successor Agency to the Redevelopment Agency - 102 - 3:00 p.m.

ADMINISTRATIVE REPORTS: (Item 15 – Continued)

Kaiser Permanente ’s Senior Director of Public Affairs and Communications , Roger Dougherty, answered City Council’s questions.

No public comment was received.

Motion not required for the Item.

Recess called at 4:23 p.m.

Meeting called back to order at 4:27 p.m.

Councilmember Goble returned to the Council Chamber at 4:27 p.m.

COMMISSION REPORTS: None

ACTIVITIES REPORTS/COMMENTS OF MAYOR WELLS:

SANDAG (San Diego Association of Governments) Board of Directors; SANDAG – Audit Committee; LAFCO.

16. Council Activities Report/Comments

Report as submitted.

ACTIVITIES REPORTS OF COUNCILMEMBERS:

17. COUNCILMEMBER STEVE GOBLE
MTS (Metropolitan Transit System Board); East County Advanced Water Purification Joint Powers Authority Board; Chamber of Commerce – Government Affairs Committee; SANDAG – Board of Directors – Alternate; SANDAG Public Safety Committee – Alternate; METRO Commission/Wastewater JPA – Alternate.

Council Activities Report/Comments.

Report as submitted.

Joint Meeting: El Cajon City Council/Housing Authority/ June 14, 2022 Successor Agency to the Redevelopment Agency - 103 - 3:00 p.m.

ACTIVITIES REPORTS OF COUNCILMEMBERS: (Continued)

18. COUNCILMEMBER GARY KENDRICK
METRO Commission/Wastewater JPA; Heartland Communications; Heartland Fire Training JPA.

Council Activities Report/Comments.

Report as stated.

19. DEPUTY MAYOR MICHELLE METSCHEL
Harry Griffen Park Joi nt Steering Committee; Heartland Communications – Alternate; Heartland Fire Training JPA – Alternate.

Council Activities Report/Comments.

Report as submitted.

20. COUNCILMEMBER PHIL ORTIZ
League of California Cities, San Diego Division; East Count y Economic Development Council; MTS (Metropolitan Transit System Board) – Alternate; East County Advanced Water Purification Joint Powers Authority Board – Alternate; Chamber of Commerce – Government Affairs Committee – Alternate.

Council Activities Report/Comments.

Report as submitted.

JOINT COUNCILMEMBER REPORTS: None

GENERAL INFORMATION ITEMS FOR DISCUSSION: None

ORDINANCES: FIRST READING – None

ORDINANCES: SECOND READING AND ADOPTION - None

Joint Meeting: El Cajon City Council/Housing Authority/ June 14, 2022 Successor Agency to the Redevelopment Agency - 104 - 3:00 p.m.

CLOSED SESSIONS:

RECOMMENDATION: That the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency adjourns to Closed Session as follows:

21. Closed Session - Conference with Legal Counsel - Existing Litigation - pursuant to paragraph (1) of subdivision (d) of G overnment Code section 54956.9: Aaron Morgan vs. City of El Cajon, et al.

San Diego Superior Court Case No. 37-2022-00012053-CU-PA-CTL

22. Closed Session - Conference with Legal Counsel - Anticipated Litigation - Significant exposure to litigation pur suant to paragraph (2) of subdivision (d) of Government Code section 54956.9 - Four (4) potential cases: The Law Offices of Allan S. Field, on behalf of Noah Karmichael Steinbach; and the Frantz Law Group, on behalf of Abigail Reyes, Gabriel Reyes, and the Estate of Jiovanni Roman, have submitted Claims for Damages alleging losses suffered following a vehicular collision at an intersection maintained by the City of El Cajon

MOTION BY WELLS, SECOND BY KENDRICK, to ADJOURN to Closed Session at 4:29 p.m.

MOTION CARRIED BY UNANIMOUS VOTE.

RECONVENED to Open Session at 4:50 p.m.

City Attorney Foley reported the following actions:

21. Direction given to Legal Counsel

22. No action taken

Adjournment: Mayor Wells adjourned the Regular Joint Meeting of the El Cajon City Council/ Housing Authority/Successor Agency to the El Cajon Redevelopment Agency held this 14th day of June, 2022, at 4:51 p.m., to Tuesday, June 28, 2022, at 3:00 p.m.

________________________
ANGELA L. CORTEZ, CMC
City Clerk/Secretary

City Council
Agenda Report
Agenda Item 4.

DATE: June 28, 2022
TO: Honorable Mayor and City Councilmembers
FROM: Michael James, Deputy Director of Public Works - Operations SUBJECT: Contract Amendments for Street Sweeping Services RECOMMENDATION:

Approve the retroactive payment of prevailing wages in an amount not to exceed $150,000; and

1. Extend the term of the agreement from July 1, 2022 through and including June 30, 2023, and increase the Street Sweeping Services Contract in an amount not to exceed $160,000.

2. BACKGROUND:

Street sweeping is one of the City's best tools to improve water quality. Sweeping provides neighborhood beautification as well as other benefits for the environment, which includes the collection and removal of trash and other debris that accumulates in the streets and gutters. It is also a mandated activity per the San Diego County Municipal Storm Water Permit issued by the California Regional Water Quality Control Board (RWQCB), San Diego Region 9, which requires each Co-permittee in San Diego County to implement a street sweeping program.

On June 12, 2018, the City Council awarded RFP #005-19, Street Sweeping Services for Cities of El Cajon and La Mesa, for a one-year term in the amount of $240,000, with the option to renew for four (4) additional one-year periods.

The frequency of sweeping will not change between Fiscal Year 2021-22 and Fiscal Year 2022-23.

Area Frequency
Commercial 4 or 8 times per year
Residential 1 time per month
Municipal Parking Lots 2 or 4 times per month
Discussion:

In October 2021, the Department of Industrial Relations (DIR) determined that street sweeping operators are subject to prevailing wage rates; the current contract does not include prevailing wage. The payment of prevailing wage is the largest factor contributing to the price escalation for the current agreement and final renewal option. Other contributing factors include inflation, materials and supplies costs, and operational overhead.

Staff recommends the following amendments to the existing agreement:

Amendment No. 4 – Retroactive payment of prevailing wages in an amount not to exceed $150,000. This payment will account for back pay from October 4, 2021 through June 30, 2022.

1. Amendment No. 5 – Extend the term of the agreement from July 1, 2022 through and including June 30, 2023, and increase the Street Sweeping Services Contract in an amount not to exceed $160,000 for a one-year period through June 30, 2023.

2. Both proposed amendments will allow the street sweeping program to continue for an additional year. During that year, staff will evaluate alternatives, such as, soliciting a new request for proposals or bringing street sweeping services back in-house for City Council’s review.

FISCAL IMPACT:

Approval of the $150,000 increase for retroactive prevailing wage payment will supplement the existing contract with PS for a total contract amount of $400,000. Sufficient funds are available in the Fiscal Year 2021-22 Annual Budget: Wastewater (650750).

Approval of the $160,000 increase to accommodate prevailing wage payment for the final renewal term will result in a total contract amount of $410,000. Sufficient funds are included in the proposed Fiscal Year 2022-23 budget, contingent upon City Council approval: Wastewater (650750).

Prepared By: Mike James, Deputy Director of Public Works Reviewed By: Yazmin Arellano, Director of Public Works
Approved By: Graham Mitchell, City Manager
Attachments
Resolution

Page 1 of 1 ends

RESOLUTION NO. __-22

A RESOLUTION OF THE EL CAJON CITY COUNCIL

ADOPTING AMENDMENTS TO THE STREET SWEEPING

CONTRACT BETWEEN THE CITY OF EL CAJON AND

CANNON PACIFIC SERVICES, LLC, DBA PACIFIC SWEEPING

WHEREAS, beginning July 1, 2018, the City of El Cajon ("City") has had an agreement with Cannon Pacific Services, dba Pacific Sweeping , ("Pacific Sweeping") to provide street sweeping services; and

WHEREAS, in October of 2021, the Department of Industrial Relations issued a ruling finding that street sweeping operators are subject to prevailing wage rates; and

WHEREAS, the City's current contract with Pacific Sweeping (the "Contract") does not include prevailing wage payments; and

WHEREAS, in the event that prevailing wages are found to be due retroactively to October of 2021, the City desires, by means of a F ourth Amendment to the Contract, to provide back payment of prevailing wages in an amount not to exceed $150,000.00 for a total contract amount of $400,000.00 for fiscal year 2021-2022; and

WHEREAS, the City further desires, by means of a F ifth Amendment to the Contract, to extend the term of the Contract from July 1, 2022 through and including June 20, 2023, and to provide the additional compensation in an amount not to exceed $160,000.00 for prevailing wage amounts for a total contract amount of $410,000.00 for fiscal year 2022-2023.

NOW, THEREFORE, THE CITY COUNCIL OF EL CAJON RESOLVES AS FOLLOWS:

1. The above recitals are true and correct, and are the findings of the City Council.

2. The City Council hereby approves adding the Fourth Amendment and the Fifth Amendment to the Contract.

06/28/22 CC Agenda
Reso – A Resolution of the City of El Cajon Adopting the Fourth Amendment and the Fifth Amendment to the Pacific Sweeping Contract

City Council
Agenda Report
Agenda Item 5.

DATE: June 28, 2022
TO: Honorable Mayor and City Councilmembers
FROM: Clay Schoen, Director of Finance
SUBJECT: Fiscal Year 2022-23 Annual City, Housing Authority, and Successor Agency Budgets
RECOMMENDATION:

Acting as the City Council, individually adopt the following:

Resolution of the City of El Cajon Adopting the Fiscal Year 2022-23 Annual Budget.a.

Resolution Approving and Adopting the Annual Appropriations Limit for Fiscal Year 2022-23.
b.

Resolution Approving Designation of General Fund Balances.c.

1. Acting as the Housing Authority Board of Directors, adopt Resolution titled: Resolution of the El Cajon Housing Authority Adopting the Fiscal Year 2022-23 Budget.

3. BACKGROUND:

Presented for adoption are the Fiscal Year 2022-23 Budgets for the City, Housing Authority, and the Successor Agency to the former Redevelopment Agency. After today’s public hearing, it is recommended that the City Council/Board approve City, Housing Authority, and Successor Agency resolutions to adopt the Fiscal Year 2022-23 Budgets and the City’s Annual Appropriations Limit for Fiscal Year 2022-23.

The Successor Agency budget and a Recognized Obligations Payment Schedule (ROPS) must be prepared by the Successor Agency and presented to the Oversight Board and State Department of Finance for approval. The annual budget and ROPS for Fiscal Year 2022-23 were approved by the Oversight Board on January 20, 2022, and subsequently submitted to the State and County Auditor-Controller for allocation of funding. In addition to the resolutions, attached to this report is the City Manager's Transmittal Letter and the FY 2022-23 Budget cover page. A copy of the full budget can be found at www.elcajon.gov/budget.

FISCAL IMPACT:

Appropriations totaling $232,956,994 will be established for City of El Cajon and Housing Authority funds in addition to $4,614,395 for the Successor Agency of the former El Cajon Redevelopment Agency.

Prepared By: Clay Schoen, Director of Finance
Reviewed By: N/A
Approved By: Graham Mitchell, City Manager
Attachments
Resolution - City Budget
Resolution - Annual Appropriations
Resolution - Designation of GF Balances
Resolution - Housing Budget
Resolution - Successor Agency
FY23 Budget Letter from the City Manager
FY23 Preliminary Annual Budget Cover

Page 1 of 1 ends

RESOLUTION NO. __-22

RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF EL CAJON ADOPTING THE
FISCAL YEAR 2022-2023 ANNUAL BUDGET

WHEREAS, the City Council of the City of El Cajon review ed the proposed 2022- 2023 annual budget at the June 14, 2022 City Council meeting , and accept ed public comments to the proposed budget; and

WHEREAS, on June 28, 2022, the City Council further held a public hearing to accept additional testimony, both oral and writt en, related to the proposed 2022- 2023 annual budget; and

WHEREAS, the annual budget includes all City grants and annual capital improvement budgets; and

WHEREAS, copies of the budget have been provided on the City’s website, at various City Hall locations, and made available to the public.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

The City Council does hereby approve and adopt the City of El Cajon budget titled City of El Cajon Annual Budget 2022-2023, incorporated herein by reference, and reaffirm all active grant and capital project budgets.

06/28/22 CC Agenda
Reso - Budget – Adopt City FY 22-23 Budget 062222

Page 1 of 2 ends

RESOLUTION NO. __-22

RESOLUTION APPROVING AND ADOPTING THE

ANNUAL APPROPRIATIONS LIMIT FOR
FISCAL YEAR 2022-2023

WHEREAS, Article XIII (B) of the State Constitution places various limitations on the appropriations of the state and local governments; and

WHEREAS, Article XIII (B) provides that the appropriations limit for the fiscal year 2022-2023 is calculated by adjusting the appropriations of the fiscal year 2021- 2022 for changes in the price and population; and

WHEREAS, the information necessary for making these adjustments is attached in Exhibit "A," and made a part hereof; and

WHEREAS, the City of El Cajon has complied with all of the provisions of Article XIII (B) in determining the appropriations limit for fiscal year 2022-2023.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

That the appropriations subject to limitations in fiscal year 2022- 2023 shall be $195,270,339 for the City of El Cajon.

06/28/22 CC Agenda
Reso - Budget – Annual Appropriations Limit for FY 22--23 Budget 062222

Page 2 of 2 ends

EXHIBIT "A"

DETERMINATION OF 2022-2023 APPROPRIATIONS LIMIT

CONSTITUTIONAL SPENDING LIMITS

Article XIII (B) of the California Constitution provides that the City’s annual appropriations be subject to certain State limitations. This appropriations limit is often referred to as the Gann Limitation. The City’s limitation is calculated each year and is established by a resolution of the City Council as a part of the Annual Operating Budget.

The Article XIII (B) limitation for Fiscal Year 2022-2023 is $195,270,339. The Gann spending limitation is calculated by taking the prior year’s limitation of $182,952,820 and adjusting it by the growth factor in the California Per Capita Personal Income and change in the population within the County of San Diego.

The Article XIII (B) limitation is not a restricting factor for the City of El Cajon due to the population growth during the past several years.

Basic References:

(1) City o f El Cajon Resolution No. 051 -21 (established 2021-2022 appropriations limit)

(2) Article XIII (B), State Constitution, as implemented by SB 1352 of 1980 and amended by Proposition 111 and SB 88 of 1990

(3) "Price and Population Data for Local Jurisdictions," Department of Finance, State of California, May 2022

Raw Data:

California Non-Residential Population Growth Population Growth per Capita New Construction County of San Diego City of El Cajon Personal Income

7.55% * -.08% -.76%

CORRECTED APPROPRIATIONS LIMIT 2021-2022 = $182,952,820 ______________________________________________________________________

Calculation:

2022-2023 1.0755 x 0.9924 = 1.06732620 x $182,934,576 = $195,270,339

* Unavailable at this time.

Page 1 of 2 ends

RESOLUTION NO. __-22

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EL CAJON APPROVING

DESIGNATION OF GENERAL FUND BALANCES

WHEREAS, maintaining appropriate levels of fund balance, commonly referred to as reserves, is a critical component of sound financial management and fiscal security; and

WHEREAS, the practice of maintaining reserves was formalized by El Cajon City Council adoption of the Fund Balance City Council Policy B-12 ("CCP B-12") on June 14, 2011, and reinforced by the Pension Reform and Fiscal Responsibility Plan Resolution No. 47-13 adopted on April 9, 2013 ("Resolution 47-13"); and

WHEREAS, by implementation of CCP B -12 and Resolution 47- 13, as well as subsequent annual budgets, the following reserve accounts have been established and maintained at various levels:

1. Carryover Reserve (Unassigned Fund Balance): Funded by revenues received in excess of expenditures, and available for future appropriation;

2. Designated for Economic Uncertainty (Assigned Fund Balance): Established for the purpose of stabilizing delivery of City services during periods of structural budget deficits and to mitigate the effects of major economic uncertainties resulting from unforeseen changes in revenues and/or expenditures;

3. Designated for Unfunded PERS/Retirement Obligations (Assigned Fund Balance):

Due to increasing retirement contribution rates to CalPERS and unfunded pension obligations, the City Council approved the Pension Reform and Fiscal Responsibility Plan, which includes making periodic additional payments to CalPERS, whenever fiscally prudent; and

4. Operating Reserve (Committed Fund Balance): A long-standing reserve established as 20% of annual expenditures for two purposes (1) to provide General Fund cash flow; and (2) to serve as a reserve of last resort against unexpected events or risks outside the City's control; and

WHEREAS, from time to time it becomes necessary to adjust reserve balances to reflect both changing economic conditions, as well as advance the City Council's commitment to sound financial management; and

WHEREAS, at the completion of Fiscal Year 2020- 2021 the General Fund had reserves totaling $53.0 million, as detailed below:

Reserve Account Balance
Carryover Reserve $22,982,958
Designated for Economic Uncertainty 6,500,00
Reserve for Unfunded PERS/Retirement Obligations 8,000,000 Operating Reserve (20% of Expenditures) 15,531,197
Total General Fund Reserve Balance $53,014,155

Page 2 of 2 ends

WHEREAS, General Fund Reserves are currently 66.8% or approximately eight (8) months of operating expenditures, which exceeds current requirements, and allows the opportunity to redirect funds to meet future City needs.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

1. The above recitals are true and correct, and are the findings of the City Council.

2. The City Council hereby approves the designation of general fund balances as set forth in the table below, to better prepare the City of El Cajon for future financial challenges.

Reserve Account Balance
Carryover Reserve $8,247,751
Designated for Economic Uncertainty 15,883,202
Reserve for Unfunded PERS/Retirement Obligations 13,000,000 Operating Reserve (20% of Expenditures) 15,883,202
Total General Fund Reserve Balance $53,014,155

3. The City Manager and the Director of Finance are hereby authorized to designate general fund balances to balance reserve accounts as herein approved.

06/28/22 CC Agenda
Reso - Budget – Approve Designation of General Fund Balances FY 22-23 062222

Page 1 of 2 ends

RESOLUTION NO. ECHA-__

RESOLUTION OF THE EL CAJON HOUSING AUTHORITY
APPROVING THE FISCAL YEAR 2022-2023 BUDGET

WHEREAS, on March 9, 2011, the City Council for the City of El Cajon (the "City Council") established the El Cajon Housing Authority (the "Housing Authority") in order to transfer the affordable housing functions of the Agency, to the Housing Authority; and

WHEREAS, t he Housing Authority anticipates the periodic return of Low - and Moderate-Income Housing Asset Funds through the repayment of outstanding Agency contracts, loans, other receivables, or other sources borrowed or generated by the Housing Authority.

NOW, THEREFORE, BE IT RESOLVED BY THE EL CAJON HOUSING
AUTHORITY BOARD OF DIRECTORS AS FOLLOWS:

1. The foregoing recitals are true and correct and constitute findings of the Housing Authority Board of Directors.

2. The Housing Authority Board of Directors hereby further finds and determines that the planning and administrative costs paid with Low and Moderate Housing Asset Funds or other funds as may be received , as described in the Low - and Moderate-Income Housing Asset Fund Administration and Capital Improvement Budgets are necessary for the production, improvement or preservation o f low- and moderate- income housing as required by subdivision (d) of section 33334.3 or 34200 et seq. of the California Health and Safety Code.

3. The Housing Authority Board of Directors hereby further finds and determines that it will follow section 34176 of the Health and Safety Code relating to expenditures of the Low and Moderate Income Housing Fund asset fund.

4. The Housing Authority Board of Directors hereby further finds and determines that the acquisition/development of properties to be owned by or assisted by the Authority, assistance to low and moderate income households and improvements to properties, including a rapid rehousing and/or homeless prevention project, the Lexington Square – Rental Subsidy Project , the Housing Authority Development and Revitalization Project, and the Acquisition/Rehab/New Construction project that help to eliminate both physical and economic blight by producing and/or replacing affordable housing units, renovating facilities with substandard, defective or obsolete design or construction, and stimulating economic activity.

5. The Housing Authority Board of Directors hereby further finds and determines that no other reasonable means of financing the proposed activities are available to the community to fund these projects at this time.

6. The Fiscal Year 2022-2023 Low and Moderate-Income Housing Asset Fund Budget, including the Administration and Capital Improvement Budget included in the City

Page 2 of 2 ends

of El Cajon fiscal year 2022-2023 annual budget, incorporated herein by reference, is hereby approved.

06/28/22 CC Agenda
Reso - Budget – Adopt Housing Authority (ECHA) FY 22-23 Budget 062122

Page 1 of 3 ends

RESOLUTION NO. __-22

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EL CAJON

AS THE SUCCESSOR AGENCY TO THE

EL CAJON REDEVELOPMENT AGENCY
ADOPTING THE FISCAL YEAR 2022-2023 BUDGET

WHEREAS, the City of El Cajon formed the El Cajon Redevelopment Agency (the "Agency"), which has continuously eng aged in redevelopment activities under the Community Redevelopment Law (Health and Safety Code sections 33000 et seq .) (the "Redevelopment Law"); and

WHEREAS, Assembly Bill 1X 26 (the "Dissolution Act") was enacted on June 28, 2011, to significantly modify the Redevelopment Law; and

WHEREAS, the Dissolution Act dissolved all redevelopment agencies in the state of California, including the El Cajon Redevelopment Agency, effective February 1, 2012; and

WHEREAS, section 3417 3 of the Redevelopment Law, as amended by the Dissolution Act, provides that the City, as the agency authorizing the creation of the Agency, is the successor entity to the Agency upon its dissolution (the "Successor Agency"), and is responsible for those obligations set forth in section 34177 of the Redevelopment Law, which include collecting obligations to the Agency, disposing of assets, winding down the affairs of the Agency, and otherwise performing such functions as required under the Dissolution Act; and

WHEREAS, the San Diego Countywide Redevelopment Successor Agency Oversight Board adopted a Recognized Obligation Payment Schedule ( "ROPS") for expenditures for the period of July 1, 2022 through June 30, 2023 on January 20, 2022; and

WHEREAS, in order for the Successor Agency to act as contemplated herein the Agency must adopt an operating budget for the Fiscal Year 2022-2023 of $4,614,395 for the Successor Agency; and

WHEREAS, the proposed budget is based on the anticipated level of responsibilities transferred to the Successor Agency; and

WHEREAS, the absence of any particular contract or other obligation, from a ROPS does not in any way waive the legal rights of the City of El Cajon to challenge the purported validity of such contracts or obligations under the Dissolution Act.

NOW, THEREFORE, BE IT RESOLVED BY THE EL CAJON CITY COUNCIL AS FOLLOWS:

Section 1. Recitals. The above recitals are true and correct.

Page 2 of 3 ends

Section 2. Approval of Budget. The City Council, solely in its capacity as the Successor Agency, hereby approves the operating budget of $ 4,614,395 for the Fiscal Year 2022-2023.

Section 3. Appropriations. The appropriations listed in Exhibit "A," establishing the operating and project administrative and debt service budgets for the City of El Cajon as Successor Agency to the former El Cajon Redevelopment Agency, consistent with the ROPS for the period of July 1, 2022 through June 30, 2023, are to be made.

06/28/22 CC Agenda
Reso - Budget – Adopt Successor Agency FY 22-23 Budget 062222

Page 3 of 3 ends

NEED NEW EXHIBIT "A"

EXHIBIT "A"

SUCCESSOR AGENCY TO THE EL CAJON REDEVELOPMENT AGENCY

PROPOSED BUDGET
FISCAL YEAR 2022-2023

Total F iscal Year
2022-23
Other Funds
702110 Successor Agency Administration 46,000$
702900 Hazardous Materials Testing-Park & Ballantyne 100,000$ RPTTF - Non Administrative
701100 Successor Agency Debt Service 4,468,395$
Total F iscal Year 2022-23 Budget 4,614,395$
Activity/Project

City Manager

City of El Cajon ● 200 Civic Center Way ● El Cajon, CA 92020 (619) 441‐1716 ● Fax (619) 441‐1770
www.cityofelcajon.us

June 14, 2022

Honorable Mayor, City Council, and El Cajon Residents:

I am pleased to present the City of El Cajon Fiscal Year 2022-2023 (FY 2022-23) Annual Budget.

The annual budget establishes funding priorities for the commun ity and supports the City Council’s goals, policies, and objectives for the coming year. The budget document serves as the City’s financial plan based on the Five-Year Business Plan and the Annual Comprehensive Financial Report. This year’s budget focuses on priorities such as fiscal stability, public safety, public infrastructure, and community (such as recreation, beautification, and public events) as well as the five main priorities established through the City C ouncil 2022-23 Priorities & Implementation Plan process. Those priority areas include:
o Revitalization of Downtown El Cajon,
o Economic Development,
o City Beautification,
o Homelessness,
o Public Safety, and
o Several Miscellaneous goals such as more public engagement, celebration of accomplishments, addressing regional issues that impact local b usinesses and neighborhoods, and developing a new City Veteran’s Memorial.

Review of Fiscal Year 2021-22 Budget
The City came out of the global COVID-19 pandemic fiscally inta ct, in part, because of the measures implemented in anticipation of significant revenue sho rtfalls. In FY 2021-22, total projected General Fund revenues exceeded budgeted expectations by $4.1 million. Also, due to the conservative approach taken, projected General Fund expenditures are about $475,099 less than budgeted. This resulted in a budget surplus of approximately $4.6 million.

Summary of Fiscal Year 2022-23 Budget
The FY 2022-23 budget assumes encouraging growth over the past year’s revenue and is able to lift some of the cost-saving measures put into place last fiscal year, such as continuing to unfreeze vacated positions.

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The following points highlight several elements of the FY 2022-23 budget:
o Estimated General Fund revenues total $90.1 million, $5.8 mill ion more than last year’s budgeted amount—a 6.9% increase.
o Projected General Fund expenditures total $92.1 million, $8.4 million above last year’s budget.
o At the end of FY 2022-23, the budget anticipates a combined Ge neral Fund balance and reserve of $56.0 million, which is approximately $2.1 million l ess than the current fund balance. This is primarily due to the City’s decision to over-hire ten police officers. o An infusion of approximately $30 million in American Rescue Pl an funds will continue to aid the City in its efforts to meet community needs through the next few years. o The City’s 31 non-General Fund budgets, with combined expendit ures of nearly $140.7 million in FY 2022-23, support many of the City’s objectives.

I am proud to say that the FY 2022-23 budget maintains service levels while meeting other priorities, such as supporting the City Council’s 2022-23 Priorities and Implementation Plan. The following sections demonstrate how community priorities are accomplished through this budget.

Fiscal Stability
The FY 2022-23 budget maintains a strong General Fund reserve of approximately $56.0 million — 60.8% of the General Fund’s annual expenditure. This balance will protect the City in the event of an economic or natural disaster and will allow the City to m aintain services. During the upcoming fiscal year, the City will continue to seek strategies to reduce costs while augmenting revenue through economic development initiatives.

Economic Development
The FY 2022-23 budget includes $1.1 million for economic develo pment activities from the General Fund. A significant amount of this allocation is for development agreements entered into over the past few years to facilitate vital development (Courty ard Marriott and new car dealerships—BMW, Honda, and Mercedes Benz). Other monies have been allocated for business development activities related to the City’s Opportunity Zones, business attraction effort, redevelopment opportunities, and economic development assessmen t study. The budget also reflects over $5.0 million in business assistance programs thro ugh the American Rescue Plan funds.

Public Safety
The FY 2022-23 budget reflects filling all vacant police positi ons as well as compensation increases in order to attract and retain professional and trained staff. This budget also reflects the Police Department’s ongoing use of the Special Enforcement Unit to address quality of life issues including the impacts of homelessness on the community. Additio nal funding toward homeless programs and addressing homelessness continues to be a budget priority in FY 2022-23.

Public Infrastructure/ Enhanced Public Image
Throughout FY 2022-23, the City will continue to implement its aggressive street maintenance program by allocating various transportation funds toward street paving, sidewalk installation, and drainage systems improvements. In addition, over $30 million in grant and non-General Fund monies will improve vehicle/pedest rian/bicycle safety and ADA i mprovements. Significant improvements are budgeted for projects on Jamacha Road, Madison Avenue, El Cajon Boulevard, Main Street, and Oakdale Avenue. Other projects fund ed in the FY 2022-23 budget include the Broadway Creek Restoration project, Wells Park impr ovements, Luke Lane

improvements, and a significant energy efficiency/solar project. These projects, along with efforts regarding homelessness, economic development, and code enforcem ent, strive to enhance the image of the community.

SANDAG Smart Growth Grant funding ($5 million) and San Diego Ri ver Conservancy Prop 68 Grant funding ($500,000) was obtained for improvements along El Cajon Boulevard and Main Street to revitalize the areas surrounding the El Cajon Transit District and the Main Street corridor between Marshall Avenue and El Cajon Boulevard.

Of the approximate $72.0 million in appropriation for infrastructure improvements in FY 2022-23, about $66.8 million is from non-General Fund sources.

Homelessness
Through various funding sources, the FY 2022-23 budget addresse s many aspects of homelessness. The City will fund programs aimed to help individ uals and households secure permanent housing and to mitigate negative impacts of homelessn ess in the community. The budget supports the following homelessness and homeless prevention programs in FY 2022-23:
o Homeless Outreach & Housing
Assistance,
o A Way Back Home Reunification
Program,
o Emergency Shelter,
o Emergency Rotational Shelter,
o Emergency Motel Bridge to Permanent
Housing,
o East County Homeless Task Force,
o Neighborhood Quality of Life Team,
o City Homeless Outreach Program,
o Emergency Rental/Mortgage/Utility
Assistance, and
o Support to various organizations
providing homelessness and
homelessness prevention services.

Community (Recreation, Culture, and Public Events)
The FY 2022-23 budget allocates resources to community events a nd recreation. The budget funds important community events such as the Fourth of July Cel ebration, HauntFest, Mother Goose Parade, return of America on Main Street/Foodie Fest, and movies in the park. The FY 2022-23 budget includes allocations of funds for ongoing improv ements at Wells Park, Hillside Park Playground Shade Structures, Hillside Park Solar Lighting, Stoney’s Neighborhood Park Playground Resurfacing, Renette Park Adult Fitness Area, and improvements to Kennedy Park.

The FY 2022-23 budget supports the City’s six community centers, four with gymnasiums, and a public swimming pool. Core recreation classes, such as dance, t umbling, cheer, gymnastics, preschool, swim, youth sports and adult enrichment classes will expand to meet the diverse needs of the community. With the continuation of Dollar Days, funded through the American Rescue Plan, all swim lessons are $5 to El Cajon residents. The Rec Squad will increase its programming to be at local schools immediately after school hours one day a week to increase positive critical hours of service to provide diversionary activities to area youth.

Communication/Civic Engagement
Through feedback tools, the City will continue to refine its communication with El Cajon residents and businesses, with an emphasis on engaging with its diverse community. The City freeway sign will assist in this effort along with improvements to its socia l media messaging. The budget also reflects the addition of a Marketing and Engagement Manager to assist the City in connecting with its citizens, promoting important activities in the City, and s oliciting ways to better serve the community.

Conclusion
The FY 2022-23 budget represents a fiscally sound plan that eff ectively addresses the fiscal realities facing cities in California. It allocates scarce reso urces to meet community needs and priorities. Lastly, it establishes budgeting patterns that will ensure the City’s fiscal health for years to come.

This budget document is the result of the dedicated effort of t he entire City of El Cajon team, led by the Finance Department. The Finance Department, working with all City departments and the executive team, has prepared a budget that reflects the values and vision set forth by the City Council. The City Council’s continued leadership, stability, an d foresight continue to be the primary ingredients in El Cajon’s success.

Finally, under the direction of the City Council, I am grateful for the opportunity to lead a team of dedicated municipal employees with a passion to serve the El Cajon community. Each year, I am overwhelmed by City staff’s commitment to serving the community. I am excited for the upcoming year with a renewed focus on meeting community needs and fulfilling City Council priorities.

Respectfully submitted,

Graham Mitchell
City Manager

Preliminary Annual
Budget Summary
Fiscal Year
2022-2023
City of
El Cajon
https://www.elcajon.gov/budget
City Council
Agenda Report
Agenda Item 6.

DATE: June 28, 2022
TO: Honorable Mayor and City Councilmembers
FROM: Frank Carson, Director of Parks & Recreation
SUBJECT: Veterans Memorial Update
RECOMMENDATION:

That the City Council receives the report and provides feedback to staff.

BACKGROUND:

At its January 11, 2022 meeting, the City Council discussed new veterans memorial options and potential locations. At that time, the City Council was made aware that the current Veterans Memorial in front of The Magnolia may not compliment the venue as it once did when erected on November 11, 2000 nor pay appropriate tribute to the men and women of El Cajon who have served in the Armed Forces. At that meeting, the City Council directed staff to meet with stake holders and return with additional information for City Council consideration.

Since then, staff met with the newly created City of El Cajon Veterans Coalition on May 19, 2022. Additionally, staff met with members of the American Legion Post 303 on Memorial Day, May 30, 2022, to discuss an updated veterans memorial. At that time, some members of the American Legion Post 303 also wanted to possibly include Space Force as the sixth branch of the U.S. Armed Forces.

Also, on June 16, 2022, staff met with Veterans Coalition members at various locations in the City to discuss the potential for veterans memorial locations. The next meeting for the Veterans Coalition will be on July 28, 2022. Staff plans to meet this summer with the Marine Corps League Detachment, VFW, AMVETS and Navy Fleet Reserve to receive their input.

Furthermore, staff will be hosting two community center public input meetings to gather feedback from community members for an updated veterans memorial.

The next area of feedback that will sought is whether the memorial should be located in a place where people can gathering (such as the current location or in front of the Police Department), or should it be more publically visible, which may not be able to accommodate large gatherings (such as the new memorial in Santee)? Ideas for final location options are still being discussed as there are many ideas that still need to be addressed for long-term suitability. Staff will return to the City Council in early Fall after further discussions with stakeholders.

FISCAL IMPACT:

Fiscal impact will be determined after further evaluation.

Prepared By: Frank Carson, Director of Parks & Recreation Reviewed By:

Approved By: Graham Mitchell, City Manager
City Council
Agenda Report
Agenda Item 7.

DATE: June 28, 2022
TO: Honorable Mayor and City Councilmembers
FROM: Graham Mitchell, City Manager
SUBJECT: Introduction of an Ordinance Amending Chapter 2.16.020 of the El Cajon Muncipal Code Regarding Salaries of Councilmembers and Mayor and a Resolution Adjusting the Cafeteria Benefit Allotment
RECOMMENDATION:

That the City Council considers:

1. Adopting the next Resolution, in order, adjusting the cafeteria benefit allotment from $1,200 per month to $1,350 per month, effective January 2023, for Mayor and City Councilmembers.

2. BACKGROUND:

Mayor & City Council Salaries
The Government Code and El Cajon Municipal Code (Chapter 2.16) govern salaries for the Mayor and members of the City Council. Salaries were last modified on June 25, 2019 with new rates going into effect on January 1, 2021. Prior to that, the last time Mayor and Councilmember salaries were adjusted was on January 1, 2005.

Government Code section 36516 specifies that salary increases approved by the City Council cannot take effect until after the term ends for at least one Councilmember. This means that no salary adjustments can occur until after the next municipal election in November 2022. Also, the code limits the amount of the increase to a maximum of 5 percent for each year that has passed since the last increase--this allows for a maximum of 10 percent. Staff noted that in the past two years, inflation, as determined by the Consumer Price Index, has increased by about 14 percent. Staff also compared salaries, shown below, with eight comparable cities in the County:

Mayor Salary Comparison

AGENCY MAYOR
Escondido $5,895.09
National City 4,532.13
Santee 2,956.58
Vista 2,904.00
.!!!!.. Valley of opportu:!!!L
El Cajon 2,879.00
Carlsbad 2,287.61
Oceanside 2,107.92
La Mesa 2,000.00
San Marcos 977.67
City Council Salary Comparison

AGENCY COUNCIL
Vista $2,798.00
Carlsbad 2,187.61
Escondido 2,088.43
El Cajon 1,996.00
Oceanside 1,932.75
Santee 1,754.33
National City 1,189.78
La Mesa 1,000.00
San Marcos 977.67
Staff recommends that a 10 percent adjustment be made to the salaries resulting in the Mayor's proposed salary set at $3,167 per month (an increase of $288) and the City Council's proposed salary set at $2,194 per month (or an increase of $198).

Cafeteria Benefit Allotment
Also, the City periodically reviews benefits for all of its employees, including the Mayor and City Councilmembers. In January 2020, Mayor and Councilmembers' cafeteria benefit allotment was adjusted to match the amount general employees receive. Staff would like to maintain the cafeteria benefit allotment in line with the amount issued to the general employees for the 2023 plan year.

Currently, the cafeteria benefit allotment for the Mayor and City Council is $1,200 per month. In comparison, the cafeteria benefit allotment for City staff will increase to $1,350 per month effective January 2023. Staff recommends that the Mayor and City Councilmembers’ cafeteria benefit allotment be adjusted to $1,350/month effective January 2023.

FISCAL IMPACT:

Staff estimates that the annual impact of the salary increase is $12,960, plus associated pension costs. The adjustment in cafeteria benefit allotment from $1,200 to $1,350 per month results in an annual cost of $9,000.

Prepared By: Graham Mitchell, City Manager
Reviewed By:

Approved By: Graham Mitchell, City Manager
Attachments
Ordinance (Salaries)
Resolution (Cafeteria)
ORDINANCE NO. ____

AN ORDINANCE REPEALING SECTION 2.16.020 OF
CHAPTER 2.16 AND ADDING A NEW SECTION 2.16.020
OF CHAPTER 2.16 OF THE EL CAJON MUNICIPAL CODE

ADJUSTING SALARIES OF COUNCILMEMBERS
AND MAYOR EFFECTIVE JANUARY 1, 2023

The CITY COUNCIL OF THE CITY OF EL CAJON DOES ORDAIN AS FOLLOWS:

SECTION 1: Section 2.16.020 of Chapter 2.16 of the El Cajon Municipal Code is hereby repealed.

SECTION 2: A new section 2.16.020 of Chapter 2.16 of the El Cajon Municipal Code is hereby added to read as follows:

2.16.020. Salaries of councilmembers and mayor.

With the exception of the mayor, each member of the council of the city shall receive, as salary, the sum of two thousand one hundred ninety-four dollars per month, as prescribed in Title 4 Division 3 of the Government Code of the state of California for cities over seventy-five thousand up to and including one hundred fifty thousand in population, which shall be effective January 1, 2023, in the same manner as the salaries are paid to other officers and employees of the city.

The mayor of the city shall receive, as salary, the sum of three thousand one hundred sixty-seven dollars per month, which shall be effective January 1, 2023, in accordance with the provisions applicable to members of the city council as hereinabove set forth.

SECTION 3: This ordinance shall become effective thirty days following its passage and adoption.

Ord - Amend ECMC 2.16.020 Salaries of Mayor and Councilmembers 062222

06/28/22 CC Agenda – 1st Reading
07/12/22 CC Agenda – 2nd Reading

Page 1 of 1 ends

RESOLUTION NO. ___-22

RESOLUTION REVISING THE CITY'S CONTRIBUTION
TO THE IRS SECTION 125 "CAFETERIA PLAN" FOR

THE MAYOR AND CITY COUNCIL MEMBERS

WHEREAS, California Government Code section 36516 et seq. defines the requirements and limitations for compensation and benefits for mayors and city councilmembers; and

WHEREAS, the Mayor and City Council members recognize the significant increases in costs related to medical, dental and vision care and the cafeteria benefit has fallen behind the amount eligible for City staff as well as the amounts paid to other members of city councils in San Diego County; and

WHEREAS, the Mayor and City Council members currently receive $1,200 each month in in City contributions to their Internal Revenue Code section 125 "Cafeteria Plan" accounts; and

WHEREAS, the current cafeteria benefit allotment for City staff will increase to $1,350 per month effective January 2023; and

WHEREAS, it is recommended that the Mayor and City Councilmembers' cafeteria benefit allotment be adjusted to $1,350 per month effective January 2023, which will align with anticipated City staff amount effective January 2023.

NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CAJON AS FOLLOWS:

Section 1. That the foregoing recitals are true and correct, and are findings of fact of the El Cajon City Council.

Section 2. That beginning January 2023, the City of El Cajon will contribute the Mayor's and Councilmembers' cafeteria benefit allotment in the amount of $ 1,350 per month.

06/28/22 CC Mtg.

Reso - Mayor & CC Cafeteria Benefits (eff 01-01-2023) 062222 City Council
Agenda Report
Agenda Item 8.

DATE: June 28, 2022
TO: Honorable Mayor and City Councilmembers
FROM: Anthony Shute, Director of Community Development
SUBJECT: El Cajon Economic Development Strategic Plan
RECOMMENDATION:

That the City Council adopts the next Resolution, in order, approving the El Cajon Economic Development Strategic Plan.

BACKGROUND:

On March 22, 2022, the City Council received a presentation introducing the draft El Cajon Economic Development Strategic Plan (EDSP). As part of that presentation, the City’s consultant, Natelson Dale Group (TNDG), provided demographic data and nine proposed strategies designed to:

Expand economic opportunities for El Cajon’s resident workforce by fostering creation of a diverse range of quality jobs accessible to residents across the spectrum of education/skill levels;
Revitalize El Cajon’s commercial and industrial areas by encouraging private investment that responds to anticipated real estate market demand; and Strengthen the City’s fiscal position by attracting land uses and business types that have the potential to generate General Fund revenue.

During the March 22nd meeting, the City Council responded with feedback highlighted in bold and numbered one through six below, which includes staff responses immediately under as follows:

Residential renewal/reinvestment
Economic development traditionally focuses on sustaining and increasing the City’s tax base; increasing private and corporate investments; increasing opportunities for public and private partnerships; job creation within appropriate business/industry sectors; and maximizing sustainable economic growth and viability. Residential investments are short-term economic benefits because the construction activity is temporary and not sustaining. Moreover, material and labor are likely imported with no direct economic benefit to the City.

However, to ensure multi-family housing developments meet housing codes and other applicable municipal codes, the City Council initiated the apartment inspection program. This program has resulted in reinvestments in existing housing stock.

1. .!!!!.. Valley of opportu:!!!L
•
•
•
•
•

Business attraction
One of the nine proposed strategies includes business attraction. Data shows that many businesses collaborate and support each other directly and indirectly by purchasing supplies, products and services from each. Proposed strategy #1 is designed to attract, retain, and expand businesses that are locally strong and those that are dominant in the region but not necessarily represented in El Cajon.

2. Impacts to City infrastructure and property assemblage El Cajon has strong and reliable infrastructure facilities designed to accommodate existing and future development. As it is currently, significant new development investments are analyzed by the City’s development teams to ensure any identified impacts are addressed, which are typically borne by the developer.

Property assemblage is typically a component of sizeable redevelopment efforts in that a developer has purchased more than one property and combined them to support a specific type of development.

Infrastructure needs and property assemblage may be two areas that could be part of a City-funded incentive program in a scalable fashion.

3. Density bonus for “upscale housing”
Residential development incentives currently exist in the Transit District Specific Plan and the Mixed-Use Overlay zone. However, they do not address interior features such as appliances and fixtures. If directed, staff can research this idea as part of the upcoming Zoning Code Omnibus update.

4. CEQA Streamline Development Areas
The City has approximately 600 acres of CEQA cleared project areas that encompass the Transit District, Downtown, Fletcher Parkway commercial corridor between Westwind and SR-125, the East Main St. corridor between Broadway and Pepper Drive, and Parkway Plaza. Since 2017, these areas have been identified for prime reinvestment of new commercial and residential developments while protecting existing established neighborhoods. Future development outside these areas would require an environmental assessment to determine if an in depth CEQA analysis would be required. Please note that CEQA provides numerous exemptions for new development which staff routinely uses.

5. Parkway Plaza
This prime shopping center is about 80 acres and has historically been an economic center for El Cajon and East County. In 2017, the City Council adopted the Mixed-Use Overlay zone, which was applied to the Parkway Plaza site. This zone is intended to re-invigorate properties by creating new activity centers and injecting new life with new housing opportunities. As of now, only Seritage (formerly Sears Holdings) has been actively repurposing its assets with new businesses. City staff will continue to work with Parkway Plaza and the other property owners.

6. •
•
•
•
•
•
•

DISCUSSION
The El Cajon Economic Development Strategic Plan (EDSP) serves as a planning document, similar to a Comprehensive Plan for land use (for example, a Specific Plan or General Plan), which establishes the City’s position and helps the City compete in the highly competitive world of economic development. An EDSP provides the City direction in its economic development efforts with objectives such as: sustaining and increasing the City’s tax base; increasing private and corporate investments; increasing opportunities for public and private partnerships; job creation within appropriate business/industry sectors; and maximizing sustainable economic growth and viability.

Proposed El Cajon EDSP
The EDSP includes several analyses to provide a solid data foundation including: regional economic data; target industry/cluster analysis; a SWOT Analysis; and market demand projections. Establishing the City’s economic development position and SWOT Analysis allows for the development of recommendations going forward.

These recommendations include targeted industries, which describe specific industry sectors that fit the profile of El Cajon and represent viable economic development target opportunities.

The most important aspect of the EDSP is the nine identified strategies and the implementation of these strategies in an action plan. This can be thought of as a road map with specific actions recommended achieving the desired outcome of maximizing appropriate economic development in the City.

The three goals stated above in the "Background" section (page 1) are organized under the following sections to be implemented by individual strategies. Each strategy has a program description, action steps, an implementer, partners, tools/investments, timeline for implementation, and resource allocation. Strategies may be accomplished through existing staff time and resources, while other strategies will require new resources and expenditures. It is important to note, however, that approval of the EDSP does not commit or mandate any additional expenditures. Any additional expenditure will be subject to council approval through either budget amendments or allocations in future fiscal years.

Industry Targeting: Business Development/Job Creation
This section offers recommended industries as high-priority targets and includes:Information Technology and Analytical Instruments;
Medical Devices;
Biopharmaceuticals;
Real estate, construction and development;
Aerospace vehicles and defense; and
Health services.

Associated implementing strategies to attract and build businesses are:

Focus City’s business retention/expansion/attraction efforts around high-priority industry clusters;
Collaborate with regional partners to expand the availability of entrepreneurial development resources in El Cajon; and
Implement a targeted economic development marketing program. • • • • •
•
•
•
Umbrella Programs: Creating an Environment for Economic Progress Ultimately, in this section, the implementing strategies establish a business culture that is conducive and inviting to business development within the City. A large part of this will be marketing efforts that seek to capitalize on the benefits of the City and to reposition the City’s image, from a business perspective, beyond its current identity.

Leverage the City’s in-house resources for economic development through strategic partnerships, interdepartmental collaboration, and community involvement; and Enhance the City’s interface with education/workforce development partners.

Land Use/Place Making Programs: Physical Changes to Accommodate Quality Growth The following strategies focus on place making and capital investments to make new development and investment easier to implement in response to changing markets.

Furthermore, by leveraging existing downtown assets by furthering activation could make downtown El Cajon an entertainment center. The identified strategies are:

Position Downtown El Cajon as a regional arts/entertainment center; Implement the “reposition retail” initiative to facilitate revitalization and/or re-purposing of high-vacancy shopping centers based on potential market demand for other land uses (including “tech flex” space, office, residential and mixed-use); Implement strategic initiatives to attract investment in new (speculative) business park/”tech flex” buildings to accommodate targeted business growth; and Implement an integrated effort to expand the City’s land, zoning and infrastructure capacity to accommodate anticipated development demand.

Public Input and Next Steps
The draft EDSP was made available for public review and comment via the City’s website, and sent directly to the East County Chamber of Commerce and the East County Economic Development Council. No comments were received. It is noteworthy to mention that the EDSP review committee provided substantial and informative feedback during the process of drafting the EDSP.

If adopted by the City Council, implementation will begin through a collaborative effort of the City and other partners. Initial strategies for implementation will be identified and then broken into individual work plans for implementation, and measures will be created to chart progress. In order to fully implement the EDSP long term, staff anticipates returning to the City Council periodically with various initiatives that require City Council action in some shape or form. Given this, the City Council will be an active participant in the policy direction and implementation of the EDSP over the next several years.

While this is a multi-year work plan, the strategy will need to be reviewed periodically and updated to track the ever-changing environment of economic development and ensure that the City is positioning itself in the best way for success. As some point, budget priorities will eventually be required for items necessitating additional funding and City Council action may be required on other implementation items. After the process commences, an examination of current resources being utilized may be necessary to determine if sufficient capacity currently exists to successfully implement the program or if additional resources are necessary. •
•
• •
•
•
FISCAL IMPACT:

Approval of the EDSP does not carry any direct costs. Several of the recommended strategies will have expenditures associated with them and would require budget amendments or funding under future year budgets. Many of the strategies, however, fall under items that are currently funded, such as Zoning Code updates. As implementation will require joint ventures with partners, other organizations will also provide resources toward the goals.

Prepared By: Anthony Shute, Director of Community Development Reviewed By: Vince DiMaggio, Assistant City Manager
Approved By: Graham Mitchell, City Manager
Attachments
Resolution
Final Draft Economic Development Strategic Plan

Page 1 of 1 ends

RESOLUTION NO. __-22

A RESOLUTION OF THE EL CAJON CITY COUNCIL

ADOPTING AN ECONOMIC DEVELOPMENT STRATEGIC PLAN

WHEREAS, on April 13, 2021, the City Council identified economic development as a priority and directed staff to engage an economic consultant to analyze the City of El Cajon (the "City") demographics, and determine what types of large-scale businesses could successfully be attracted the City and what type of financial participation would be needed to attract them; and

WHEREAS, City staff and the City’s Economic Development consultant, in concert with an economic development steering committee made up of El Cajon business owners, a City councilmember, and business representatives, helped to shape the direction of the plan; and

WHEREAS, on March 22, 2022, the City Council was presented with a draft Economic Development Strategic Plan (the "EDSP"); and

WHEREAS, at the Marc h 22, 2022 meeting, councilmembers provided feedback to the draft EDSP to Community Development staff.

NOW, THEREFORE, THE CITY COUNCIL OF EL CAJON RESOLVES AS FOLLOWS:

1. The above recitals are true and correct, and are the findings of the City Council.

2. The City Council hereby approves the adoption of the proposed final draft of the Economic Development Strategic Plan.

06/28/22 CC Agenda
Reso – Adopting Economic Development Strategic Plan 062022

EL CAJON

ECONOMIC DEVELOPMENT STRATEGIC PLAN

Prepared for:

City of El Cajon, California
June 2, 2022

PREPARED BY:

THE NATELSON DALE GROUP,
INC .

YORBA LINDA, CA • www.natelsondale.com

El Cajon Economic Development Strategic Plan (EDSP)
The Natelson Dale Group, Inc.

Table of Contents

1. Introduction ...................................................................................................................................1 Overview of the Strategic Planning Process ................................................................................... 1 EDSP Committee .............................................................................................................................. 2

2. Executive Summary ........................................................................................................................3 Action Plan Goals and Scope ........................................................................................................... 3 Prioritization of City Resources ....................................................................................................... 4 EDSP Strategies ............................................................................................................................... 4 High-Impact Action Items for Priority City Investment .................................................................. 5 Potential Deployment of New City Resources / Staffing ............................................................... 6 Recommended Business Retention/Expansion/Attraction Targets .............................................. 7

3. SWOT Assessment ..........................................................................................................................8

4. Highlights of Background/Technical Studies ....................................................................................9 Demographic Profile ....................................................................................................................... 9 Market Demand Projections for Commercial and Light Industrial Land Uses ............................ 12 Target Industry/Cluster Analysis .................................................................................................. 15 Existing Important Clusters in El Cajon Area .................................................................................. 16 “Candidate” Clusters for El Cajon’s Target Industry Program ....................................................... 21

5. EDSP Action Plan .......................................................................................................................... 24 Overview of Action Plan ................................................................................................................ 24 Prioritization of City Resources ..................................................................................................... 24 Recommended Business Retention/Expansion/Attraction Targets ............................................ 25 EDSP Strategies ............................................................................................................................. 27 Implementation Timeframes ........................................................................................................ 28 Monitoring Progress and Adjusting Action Plan Priorities .......................................................... 39 Appendix A: Existing Programs/Resources Relevant to the EDSP ....................................................... 40

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
1 1. Introduction

This document provides a strategic framework to guide the City of El Cajon’s economic development policies and programs over the next 5 years. The El Cajon Economic Development Strategic Plan (EDSP) is based on a comprehensive research and stakeholder input process, and reflects consensus views on the most promising opportunities and the most pressing challenges facing El Cajon’s economy. While the EDSP places primary emphasis on actions and initiatives to be pursued by the City, it recognizes that a wide array of public- and private-sector entities have roles in influencing the economic vitality of El Cajon. In this regard, some of the recommended actions will be carried out through partnerships with other entities. Even for those action items in which the City’s role is essentially coordination, this function can take many forms and is often critical to solving problems that may not otherwise have a clear constituency or single responsible entity assigned to resolving them.

Consistent with the typical scope of a municipal economic development program, the EDSP places primary emphasis on programs and actions that directly attract new businesses investment, create high- paying jobs, and improve the City’s fiscal position. Peripheral issues, including housing development and residential neighborhood revitalization, are recognized as foundational to a healthy local economy but are not the focus of the EDSP Action Plan since they are addressed in other City policies/documents (e.g., Housing Element and Consolidated Plan).

Overview of the Strategic Planning Process
The recommended policies and program activities are based on an extensive planning process that included the following components:

• An analysis of El Cajon’s existing and projected demographic profile, providing an understanding of underlying trends that may affect economic growth potentials. • Direct input from a cross section of the City’s economic development stakeholders (the EDSP Committee listed below) via a series of workshop-style meetings. • A review of the various public- and private-sector entities involved in different aspects of economic development (or related activities), along with an inventory of their existing program offerings.
• An industry “cluster” analysis to identify the industry groups (clusters) that are the most important “engines” of the existing local economy, as well as the industry groups that are likely to offer the most attractive growth potentials in the future. • A real estate market analysis to identify potential future demand for commercial and light industrial
1 development in the City.
• A 30-day public review period for the draft EDSP.

For both the industry cluster analysis and the real estate demand projections, conclusions were screened through the lens of the ongoing pandemic to identify ways in which immediate and longer- term market opportunities may be altered due to current conditions.

1 For purposes of the EDSP, “light industrial” is defined to include business park and “tech flex” space , representing facility types well suited for a range of technology-oriented industries.

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
2 Where relevant, key findings of the background and technical studies are referenced in the EDSP. The full studies are provided as separate reports.

EDSP Committee

The City of El Cajon gratefully acknowledges the participation of the following individuals in the preparation of the EDSP.

City of El Cajon

Councilmember Phil Ortiz
El Cajon City Council

Vince DiMaggio
Assistant City Manager

Tony Shute
Community Development Director

Business/Community Stakeholders

Cameron Czubernat, Broker/Principal
Commercial Properties Group

Greg Kaminski, President
Gary Kaminski, President
Toyota of El Cajon and Honda of El Cajon

Cathy Zeman, CFO and Board Member
Downtown El Cajon Business Partners
(Property Business Improvement District)

Daisy Melena, General Manager
Parkway Plaza

James Sly, President and CEO
East County Economic Development Council

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
3 2. Executive Summary
Action Plan Goals and Scope
The EDSP Action Plan is designed to achieve the following major goals:

• Expand economic opportunities for El Cajon’s resident workforce • Revitalize El Cajon’s commercial and industrial areas • Strengthen the City’s fiscal position

Whereas these goals largely revolve around attracting and retaining targeted business investment, the Action Plan recognizes that the strength of the local business/development environment will ultimately depend on El Cajon’s strategic attention to a range of “foundational” conditions such as:

• Education/workforce development systems
• Entrepreneurial development resources
• The City’s reputation for business/development friendliness • Land, zoning and infrastructure capacity
• Placemaking activities that leverage El Cajon’s unique locational advantages and sense of community (including selected housing issues2)
• Overall image and quality of life

On a practical level, implementation of this framework will be carried out through the nine specific strategies outlined below.

2 As noted in the Introduction, broader housing issues (e.g., affordability, residential neighborhood revitalization, etc.) are not the focus of the EDSP Action Plan. However, selected housing topics are discussed within the context of other EDSP objectives (e.g., placemaking and downtown initiatives).

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
4 Prioritization of City Resources
The EDSP is intended to provide a “roadmap” to guide the City’s economic development efforts over the next five years (starting in Fiscal Year 2022-2023). The Action Plan is intended to assist the City in aligning its program priorities to match the market opportunities identified during this planning effort.

Whereas many of the proposed strategies involve activities that the City is already undertaking to some extent, the Action Plan also recommends some programs that would be new activities for the City. As such, full implementation of the Plan would likely require additional City staff dedicated to economic development (as further discussed on page 6 below). In addition, the Plan identifies opportunities for the City to leverage its in-house economic development resources through collaboration with various non-City partner organizations. Recognizing that the City’s priorities for economic development are likely to evolve during the course of the 5-year implementation period, the Plan includes guidelines for periodically monitoring the effectiveness of initial efforts and adjusting the recommended programs based on changes in circumstances, available resources, etc.

EDSP Strategies

The EDSP Action Plan is organized around nine major strategies, shown below organized under the headings of A) Industry Targeting, B) Umbrella Programs, and C) Land Use/Placemaking:

Industry Targeting: Business Development / Job Creation

1. Focus City’s business retention/expansion/attraction efforts around high-priority industry clusters

2. Collaborate with regional partners to expand availability of entrepreneurial development resources in El Cajon

3. Implement targeted economic development marketing program

Umbrella Programs: Creating an Environment for Economic Progress

4. Leverage the City’s in-house resources for economic development through strategic partnerships, interdepartmental collaboration, and community involvement.

5. Enhance City’s interface with education/workforce development partners

Land Use / Placemaking Programs: Physical Changes to Accommodate Quality Growth

6. Position Downtown El Cajon as a regional arts/entertainment center

7. Implement “reposition retail” initiative to facilitate revitalization and/or repurposing of high- vacancy shopping centers based on potential market demand for other land uses (including “tech flex” space, office, residential and mixed-use)

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
5 8. Implement strategic initiative to attract investment in new (speculative) business park / “tech flex” buildings to accommodate targeted business growth
`

9. Implement integrated effort to expand the City’s land, zoning and infrastructure capacity to accommodate anticipated development demand

High-Impact Action Items for Priority City Investment
Within each of the nine major strategies, the EDSP outlines a series of specific Action Steps. Some of the action items are relatively modest in scope (but still essential as parts of a comprehensive program), whereas others are high-impact action items that can be regarded as economic development “game changers” for El Cajon. These high-impact actions are highlighted on the table below (and are potentially candidate uses of available ARPA funding).

Major Strategy
High-Impact
Action Items/
Investments
Business retention/expansion/attraction • Target industry identification and outreach (locally and regionally)
Entrepreneurial development • Coordination of startup assistance programs offered by partners
• Potential facilitation of (or direct investment in)
development of business incubator
Economic development marketing program • Professionally designed, ED-specific marketing campaign
Strategic partnerships • Periodic special events to recognize and strengthen relationships with public and private partners
(including development community)
Workforce development coordination • Interface between El Cajon’s major employers and workforce development organizations
Positioning downtown as regional
arts/entertainment center
• Facilitation of public-private Downtown Working
Group (to identify specific needs and actions to
elevate downtown’s market position)
• Downtown component of overall marketing
campaign
“Reposition retail” initiative • Direct outreach to commercial/industrial property owners to identify opportunities for reinvestment in
(or repurposing of) under utilized real estate
• City-funded incentives to encourage reinvestment
Attract investment in new business park /
“tech flex” space
Expand land, zoning and infrastructure
capacity
• Implementation of “floating zone” concept to
expedite zone changes for targeted land use changes
• Expedited CEQA processes (funded by City as an
incentive for land use change)
• Policies to incentivize reuse of underutilized sites

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
6 Potential Deployment of New City Resources / Staffing The recommended Action Plan would require deployment of new City resources in order to be effectively implemented. The consultant recommends the following resource commitments for the City’s consideration/discussion:

Major Strategy
Additional ED Staff
(FTE Allocations by
Strategy)
Other Resource
Commitments
(Amounts TBD)
Business retention/expansion/attraction 0.25
Entrepreneurial development

0.10 • Funding for contracted
incubator operator
• Funding for incubator
development and
marketing
Economic development marketing program

0.05 • Professional marketing
agency (program
design and
implementation)
Strategic partnerships 0.10
Workforce development coordination 0.05
Positioning downtown as regional
arts/entertainment center 0.10
• Special events
• Marketing
• Development
incentives
“Reposition retail” initiative

0.25 • Development
incentives
• Design prototypes and
financial analysis (part
of marketing package
to encourage
reinvestment)
Attract investment in new business park /
“tech flex” space
Expand land, zoning and infrastructure
capacity 0.10
• Profession planning
and environmental
services
Total 1.00

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
7 Recommended Business Retention/Expansion/Attraction Targets The EDSP target industry analysis identified a total of 13 industry clusters that are of potential interest to El Cajon. Among the 13 clusters, eleven are recommended as strategic targets, with six of these clusters recommended as priority targets for this Action Plan3. The priority and other clusters are organized below under the two categorical headings within which they were derived:
• Core strengths. Build on El Cajon’s existing core strengths in “traded” (dollar-importing) clusters (Local Health Services would be an example of a core strength) • Regional clusters. Tap into dominant regional industry clusters that are not currently well represented in El Cajon (e.g., Biopharmaceuticals)

Cluster
recommendations
reflecting:

Priority Industry Cluster Core
strengths
Regional
clusters

1. Information Technology and Analytical Instruments X

2. Medical Devices X

3. Biopharmaceuticals X

4. Real Estate, Construction and Development X

5. Aerospace Vehicles and Defense X

6. Health Services X

Cluster
recommendations
reflecting:

Other Strategically Significant Clusters Core
strengths
Regional
clusters

7. Business Services X

8. Communications Equipment and Services X

9. Recreational and Small Electric Goods X

10. Motor Vehicle Products and Services X

11. Environmental Services X

3 In order to efficiently concentrate available marketing resources on the most promising target industries, the EDSP will include an initial focus on the six priority clusters. The remaining five clusters would potentially be added as secondary priorities later in the implementation period (i.e., Year 3 or later).

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
8 3. SWOT Assessment

The technical studies and stakeholder input provided the basis for identification of important SWOT (strength-weakness-opportunity-threat) factors affecting El Cajon’s economic development potentials.

The most significant SWOT issues are summarized below.

SWOT SUMMARY FOR

EL CAJON EDSP
Strengths Weakness

• Existing concentration of retail and
entertainment facilities attracts patronage
from regional trade area (i.e., outside city)

• Proximity to well-developed transportation
infrastructure

• Relative affordability compared to other
parts of the County

• City leadership focused on improving
economic development opportunities
through business/development friendly
policies
• Some unfavorable demographic/economic
characteristics (income levels, poverty rates,
unemployment rates, etc.) relative to region

• Limited supply of upscale amenities that
appeal to high-skilled workers: hotels,
restaurants, etc.

• Concentration of local-serving industries
relative to “export-oriented” industries,
which tend to have higher wages and more
economic spin-off opportunities
Opportunities Threats

• Additional regional arts/entertainment
options in Downtown El Cajon; Magnolia
Performing Arts Center as an anchor for
these uses

• Existing opportunities for mid-market
ownership homes ($500-$600K); limited
supply in other parts of county

• Economic development opportunities based
on location and tie-ins with existing airport

• Significant local labor force that currently
commutes out of the region: potential
opportunity for business attraction efforts
• Relatively high shares of transient and
homeless populations

• Regional government policies that do not
promote economic development priorities in
the East County region

• Lack of high-quality, modern real estate
buildings – office and business park – to
accommodate more desirable industries that
are currently relocating to other parts of the
County

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
9 4. Highlights of Background/Technical Studies

Demographic Profile

The demographic background report4 prepared for the EDSP provides socioeconomic comparisons for the following geographies: El Cajon, the East Suburban Metropolitan Statistical Area (MSA, excluding El Cajon)5, San Diego County and California. Highlights of El Cajon’s demographic profile include the following:

General Demographic Characteristics
• For the 16 years and over population, the City has a lower share of residents in the labor force, compared to San Diego County. Compared to the other benchmark regions, the City’s share was only slightly lower. The unemployment rate was significantly higher in the City compared to the benchmark geographies, including for the 25 to 64 years population (more detailed unemployment data are summarized below).
• El Cajon residents are more likely to use public transportation, compared to residents in the East Suburban MSA and the County. However, a smaller share work at home compared to the benchmark geographies. Residents across the evaluated geographies have relatively similar commute times.
• In terms of occupational employment, a smaller share of El Cajon residents is employed in Management, business, science, and arts occupations compared to the benchmark geographies.

In contrast, El Cajon residents hold a relatively higher share of jobs in Service occupations. • In terms of industry sector employment, the largest share of El Cajon residents (20.5%) is employed in the Educational services, health care and social assistance sector (similar to the benchmark geographies). Compared to the benchmark geographies, El Cajon has a relatively larger share (14.9%) of residents employed in the Arts, entertainment, & recreation, & accommodation & food services sector. In contrast, the City has a relatively smaller share (11.6%) of its residents employed in the Professional, scientific, and management, and administrative & waste management services sector.
• For the income and benefits category, the largest share of El Cajon households (17.9%) is in the $50,000 to $74,999 household income range. The City’s households are relatively underrepresented (4.5%) in the highest household income range ($200,000 or more). The City’s

4 This summary is excerpted from Analysis of Key Datasets for Economic Development Strategic Plan, The Natelson Dale Group, Inc., December 1, 2021.
5 The San Diego Association of Governments (SANDAG) divides t he County into seven Major Statistical Areas (MSAs), partly for evaluating regional economic and demographic data. The East Suburban MSA is one of these seven MSAs, and it includes the City of El Cajon. The seven MSAs are aggregations of Subregional Areas (SRAs), which are aggregations of census tracts that identify large communities in the region. The East Suburban MSA includes the following SRAs: Jamul, Spring Valley, Lemon Grove, La Mesa, El Cajon, Santee, Lakeside, Harrison Crest, Alpine, and Ramona. For purposes of this analysis, data provided for the East Suburban MSA exclude the El Cajon SRA, given that the focus is to compare El Cajon to benchmark regions.

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
10 average household income level ($73,911) is relatively lower than the level in the benchmark geographies. The City’s per capita income level is about 66% to 74% of the benchmark geographies’ level.
• The City’s health insurance coverage rates are relatively similar to the benchmark geographies, save for a couple categories. However, a smaller share of El Cajon's residents (52.8%) has private health insurance compared to the benchmark geographies. They are much more likely to have public coverage (48.5%). This trend is consistent across all categories of the civilian noninstitutionalized population 19 to 64 years.
• Poverty rates – as measured by families and people whose income in the past 12 months was below the poverty level – for all categories of families are relatively higher in El Cajon compared to the County and the State.

Housing Characteristics
• The occupied housing rate (96.3%) in El Cajon is higher than in all the benchmark geographies. • About 39.1% of El Cajon housing units are 1-unit, detached structures, which is well below the shares in the benchmark regions. Compared to the benchmark geographies, El Cajon has significantly higher shares of housing units in the following unit count ranges: 10 to 19 units (14.3%) and 20 or more units (20.1%)
• Only about 6.5% of El Cajon housing units have been built since the year 2000, well below the shares in the benchmark geographies. About one-half (49.8%) of El Cajon’s housing units were built between the 20-year period from 1960 to 1979, a higher share than all the benchmark geographies.
• As significantly higher share (58.9%) of El Cajon’s housing units are renter-occupied compared to the benchmark geographies.
• Monthly housing costs – measured as percentage of household income – in El Cajon vary for ownership versus rental properties. For housing units with a mortgage, one-fourth (25.0%) of El Cajon households have monthly expenses that are 35.0% or more of household income. This share is below all the benchmark geographies. For rental dwelling units, about 51.4% of El Cajon households have gross rent costs that are 35.0% or more of household income. In contrast, this share is above the shares in the benchmark geographies.

Educational Attainment
• El Cajon underperforms in terms of educational attainment relative to the benchmark geographies. For the 18 to 24 years age category, El Cajon has the lowest share of the population (4.9%) with a Bachelor’s degree or higher. The same finding applies to the 25 years and over age category as well: just over one-fifth (20.9%) of the City is in the Bachelor’s degree or higher category, well below the shares in the benchmark geographies. • For the population 25 years or over with a Bachelor’s degree or higher, the City has the lowest share of residents – compared to the County and State – with a Science and Engineering (37.7%) a degree. The share is similar to the East Suburban MSA (37.0%).

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
11 Household Composition
Average household and family sizes are slightly higher in El Cajon relative to the benchmark geographies. In addition, the data for selected age categories show that El Cajon has relatively younger population compared to the benchmark geographies. For example, about one-fourth (25.3%) of the City’s population is under 18 years, which is a higher share relative to benchmark geographies.

Resident Unemployment Rates
Figure 1, below, provides annual average unemployment rate estimates for El Cajon, East Suburban MSA (selected cities), San Diego County, and California for the 10-year period from 2011 to 2020. As shown in the figure, during the recovery from the Great Recession (between 2011 and 2015), El Cajon’s unemployment rates were the highest among all geographies. The City experienced a significant decrease in the unemployment rate from 2016 to 2019. As a consequence of the coronavirus pandemic, all evaluated geographies experienced a significant increase in unemployment rates, with El Cajon experiencing the most significant increase (8.4 percentage points between 2019 and 2020).

F
IGURE 1. UNEMPLOYMENT RATE ESTIMATES: EL CAJON, EAST SUBURBAN MSA*, SAN DIEGO COUNTY, AND CA (2011-20)

Source: Bureau of Labor Statistics (BLS), Local Area Unemployment Statistics (LAUS) program; TNDG. *East Suburban MSA includes available labor force data for the cities of La Mesa, Lemon Grove, and Santee.

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
El Cajon 14.7 13.1 11.3 9.3 7.5 5.2 4.4 3.7 3.7 12.1
East Suburban* 11.0 9.7 8.3 6.8 5.5 4.7 4.0 3.4 3.2 9.3 SD County 10.5 9.3 7.9 6.5 5.2 4.7 4.0 3.4 3.3 9.2
CA-statewide 11.9 10.5 9.0 7.6 6.3 5.5 4.8 4.3 4.2 10.1 El Cajon
East Suburban*
SD County
CA-statewide

0.0 2.0

4.0 6.0

8.0 10.0

12.0 14.0

16.0 %

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
12 In Figure 2, the same unemployment rate data is provided for the first five months of 2021. As the economy recovers, unemployment rates have declined for all four evaluated geographies for the first five months of 2021. However, El Cajon has experienced the slowest decline in rates, with the unemployment rate decreasing by 0.9% percentage points from January to May.

FIGURE 2. UNEMPLOYMENT RATE ESTIMATES: EL CAJON, EAST SUBURBAN MSA*, SAN DIEGO COUNTY, AND CA (JAN-MAY 2021)

Market Demand Projections for Commercial and Light Industrial Land Uses As part of the EDSP process, The Natelson Dale Group, Inc. (TNDG) completed a real estate market analysis to provide 20-year forecasts of demand for new business park (light industrial), office and retail space in El Cajon. Tables 1 and 2 on the following pages provide an abbreviated summary of the market analysis (which is more fully documented in a separate report). Given the wide range of variables that can affect development opportunities over an extended timeframe, the demand projections for each land use are presented in terms of ranges (rather and single definitive forecasts) of potential building absorption. The market projections represent unconstrained/theoretical demand based on expected regional growth. The indicated demand exceeds El Cajon’s existing land/zoning capacity. The EDSP therefore places significant emphasis on strategies to expand development capacity through redevelopment/repurposing of existing underutilized properties.

El Cajon
East Suburban*
SD County
CA-statewide

0.0 2.0

4.0 6.0

8.0 10.0

12.0 Jan-21 Feb-21 Mar-21 Apr-21 May-21
Jan-21 Feb-21 Mar-21 Apr-21 May-21
El Cajon 9.9 9.5 9.4 9.2 9.0
East Suburban* 7.9 7.0 6.7 6.9 6.5
SD County 8.0 7.2 6.8 6.7 6.3
CA-statewide 9.0 8.5 8.3 8.0 7.7
+
+
+
+

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
13 Table 1. Summary of Commercial/Light Industrial Market Analysis (20-year Demand Projections)
City of El Cajon Economic Development

Geographic Area

Light Industrial (1)

Office

Retail

El Cajon
Existing space (square feet)
Existing vacancy rate

9,746,143

2.2%

714,892

2.7%

Data not available
at city level

East County
Existing space (square feet)
Existing vacancy rate

21,524,778

1.9%

2,456,758

4.0%

19,523,057

4.2%
San Diego County total
Existing space (square feet)
Existing vacancy rate

197,695,886

3.2%

80,691,801

13.9%

135,718,717

4.9%

Projected 20-year demand for new space
(square feet) in El Cajon:
500,000 –
750,000
250,000 –
375,000
(includes medical office)
250,000 –
500,000
(includes services space in
retail centers)

(1) Light industrial includes business park and “tech flex” space suitable for technology-oriented industries.

Sources: Kidder Matthews Industrial Market Trends (4Q 2021); JLL Office Insight (Q4 2021); Voit Real Estate Services San Diego Retail report (4Q 2021); The Natelson Dale Group, Inc. (TNDG).

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
14 Table 2. Key Market Strengths, Opportunities and Challenges for Commercial and Light Industrial Real Estate Development City of El Cajon EDSP

Market Factors

Light Industrial

Office

Retail

Market strengths/opportunities
for El Cajon
• Potential demand generation
from Gillespie Field airport
• Global demand surge for
industrial space due to e-
commerce growth
• Potential repatriation of out-
commuting workers could
generate demand for
R&D/tech tenants
• Potential nexus to
entrepreneurial development
initiatives
• Potential repatriation of out-
commuting workers could
create office-using
firms/tenants
• Potential to position East
County as a viable option for
tech firms currently
concentrated in North
County
• Potential to position East
County as a location for
shared office space attractive
to “hybrid” remote workers
• Potential nexus to
entrepreneurial development
initiatives
• Established/prominent retail
destination within East
County
• Population growth in East
County will drive incremental
growth in retail space
demand
• Potential to leverage
downtown as arts district
(and an attractor of regional
demand for retail/restaurant
spending)
• Potential to leverage El
Cajon’s concentration of
automobile dealerships
Market challenges for El Cajon • Lack of available/modern industrial space inhibits
business attraction
• Limited land/zoning capacity
for additional business park
development (need to focus
on redevelopment/
repurposing of existing
underutilized properties)
• El Cajon is unproven as a
Class A office market
• Remote work trend may
reduce overall demand for
new office space
• High vacancy rates regionally
may delay development
opportunities for new space
in outlying areas
• Global trends are reducing
footprint of brick-and-mortar
retail
• El Cajon’s existing image
issues (homelessness, etc.)
undermine market position
• Need to proactively plan for
reuse/repositioning of older
retail properties
Source: The Natelson Dale Group, Inc. (TNDG)

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
15 Target Industry/Cluster Analysis
This section provides a summary of the target industry/cluster analysis completed for the EDSP process.

The analysis (considers industry growth/retraction trends in the City of El Cajon, comparing the local economy’s recent and longer-term performance to regional and national benchmarks.

The study evaluates the City’s economy in terms of industry “clusters.” Clusters are groups of inter- related industry sectors whose growth potentials within a region tend to be closely aligned. The tendency of individual industries to co-locate in clusters reflects linkages through supply-chain relationships, as well as commonalities in terms of workforce requirements and infrastructure needs.

The concept of industry clusters is an effective framework for economic development programming since it reflects a holistic understanding of the regional economic conditions driving the growth or retraction of individual sectors. Nationally, the Cluster Mapping Project used in this analysis recognizes a total of 70 clusters, with 19 classified as “local” clusters and 51 classified as “traded” clusters.

Total current (2020) employment in the El Cajon area6 is estimated at 65,159 jobs7. Of this total, 64,274 jobs are in industries that are included in either a “local” or “traded” cluster (as further defined below); the remaining 885 jobs are in miscellaneous industries not associated with specific clusters. The local clusters currently represent a total of 50,914 jobs in the El Cajon area, while the traded clusters account for 13,359 jobs.

Whereas local and traded clusters are both critically important components of a balanced economy, they have distinct roles and characteristics, and these distinctions can be helpful in terms of planning economic development programs. Some of these distinctions are summarized as follows:
• Local clusters typically form the core of a region’s economy; they primarily provide goods and services for the local (resident) population. They tend to account for the majority of jobs in a region (in the case of the El Cajon area, local clusters represent 78% of total jobs), and support a high quality of life by ensuring the availability of a diverse range of goods and services.

• Traded clusters are “export-oriented” in the sense that they include industries that are engaged in producing goods and services for end customers outside the region. Traded clusters represent close to 21% of the jobs in the El Cajon area, and are especially important from an economic development perspective given that they tend to have higher wages and higher “multiplier impacts” compared to local clusters. That is, they have a strong potential to inject new dollars into the local economy and thereby serve as “drivers” for broader economic growth.

6 Based on the data source used for this analysis, the El Cajon area is defined to include the following zip codes:
92019, 92020, and 92021. The geographic area covered by these zip codes includes some employment centers outside the City’s boundaries. Thus, total El Cajon employment indicated in this report exceeds the number of jobs located within the City limits.
7 All employment data used in this analysis are from EMSI – a private data/modeling firm nationally regarded for its ability to provide detailed (6-digit NAICS code) industry employment estimates for small areas of geography (cities and zip codes).

Industry Cluster Study - El Cajon Economic Development Strategic Plan The Natelson Dale Group, Inc.
16 Existing Important Clusters in El Cajon Area
Table 3 on the next page lists all traded clusters that had 50 or more jobs in the El Cajon area in 2020, and provides the following information about each listed cluster:
• Total number of jobs in the El Cajon area in 2020 (the latest full year for which data are available)
• Location quotient (compared to U.S. benchmark) in 2020. The location quotient (LQ) measures how concentrated/important an industry cluster is in a region compared to national benchmarks. An LQ value greater than 1.0 indicates that a cluster is more concentrated in the region than it is nationally. This is generally regarded as an indication that the region has a comparative advantage relative to a particular cluster, although (especially for local clusters) an LQ below 1.0 can indicate a potential growth opportunity. • Average annual wage for jobs in the El Cajon area
8 • Change in the number of jobs for the most recent 10-year period, 2010-2020 Table 4 provides the same data for local clusters that had more than 500 jobs in the El Cajon area in 2020.

Tables 5 and 6 summarize cluster job growth/retraction performance in the El Cajon area, the East County region (excluding El Cajon), and San Diego County compared to national trends. This part of the study is based on a “shift-share” analysis for each cluster that estimates an “expected” job change based on national trends. If the El Cajon area (or East County or County) has higher job growth (or experiences less severe job losses) compared to the expected change, it indicates that the local area (or East County or County) has performed better than national trends. Conversely, if El Cajon area/East County/County has less job growth (or experiences more severe job losses) compared to the expected change, it indicates that the local area/East County/County has performed worse than national trends.

8 Wage data are for jobs (not residents) based in El Cajon.

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
17 TABLE 3. SUMMARY CHARACTERISTICS AND TRENDS, EL CAJON AREA LARGEST TRADED CLUSTERS (LIST INCLUDES ALL CLUSTERS WITH MORE THAN 50 JOBS IN 2020)

TRADED CLUSTER JOBS LQ COUNTY
LQ*
AVG
ANN
WAGE
10-YR
JOB
CHANGE

Education and Knowledge Creation 4,675 1.69 1.45 $60,187 (213) Business Services 1,518 0.37 1.10 94,658 380
Distribution and Electronic Commerce 964 0.38 0.64 99,407 (63) Aerospace Vehicles and Defense 926 3.49 2.90 115,091 (491) Recreational and Small Electric Goods 595 7.79 1.64 82,665 (22) Hospitality and Tourism 515 0.51 1.33 47,095 (288)
Furniture 361 2.34 0.40 66,327 (14)
Information Technology and Analytical Instruments 358 0.63 1.69 98,170 (105) Environmental Services 286 5.40 0.81 79,867 61
Wood Products 265 1.65 0.20 81,379 37
Plastics 256 0.97 0.42 71,341 22
Financial Services 249 0.29 0.90 136,688 (70)
Transportation and Logistics 240 0.28 0.51 65,205 20 Paper and Packaging 232 1.59 0.27 51,444 77
Metalworking Technology 232 1.26 0.56 64,124 19
Production Technology and Heavy Machinery 190 0.50 0.72 89,302 57 Downstream Metal Products 177 0.96 0.41 75,095 37
Upstream Metal Manufacturing 177 1.15 0.27 76,762 118 Performing Arts 151 0.67 1.08 41,022 (43)
Marketing, Design, and Publishing 141 0.20 0.97 77,021 5 Lighting and Electrical Equipment 116 0.92 0.61 73,394 42 Printing Services 105 0.63 0.64 65,531 (36)
Medical Devices 85 0.69 2.18 136,972 (26)
Automotive 80 0.21 0.13 72,806 (71)
Food Processing and Manufacturing 56 0.12 0.59 54,747 15 Nonmetal Mining 56 1.35 0.30 112,098 (27)
Communications Equipment and Services 54 0.44 2.74 194,312 (28) Insurance Services 52 0.08 0.68 89,718 (13)
GROUP TOTAL / AVG 13,007 0.73 1.00 $77,064 (581)
CITY TOTAL 65,159 N/A N/A $68,612 5,381

Note: LQ = Location Quotient; 10-year job change is from 2010 to 2020. *County LQ provided for comparison purposes.

Source: U.S. Cluster Mapping Project; EMSI; The Natelson Dale Group, Inc. (TNDG).

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
18 TABLE 4. SUMMARY CHARACTERISTICS AND TRENDS, EL CAJON AREA LARGEST LOCAL CLUSTERS (LIST INCLUDES ALL CLUSTERS WITH MORE THAN 500 JOBS IN 2020)

LOCAL CLUSTER JOBS LQ COUNTY
LQ*
AVG
ANN
WAGE
10-YR
JOB
CHANGE

Local Real Estate, Construction, & Development 11,347 2.19 1.08 $74,589 2,748 Local Health Services 5,835 0.78 0.84 63,927 1,001
Local Hospitality Establishments 4,309 0.94 1.04 27,808 343 Local Federal Government 3,436 1.68 2.81 106,743 (69) Local Government 3,407 1.49 0.98 114,508 199
Local Community and Civic Organizations 3,319 1.42 1.10 29,826 1,474 Local Education and Training 3,236 0.91 0.88 83,137 (5) Local Motor Vehicle Products and Services 3,158 1.67 0.80 61,622 80 Local Retailing of Clothing and Gen. Merchandise 2,337 1.34 0.91 36,811 (470) Local Commercial Services 2,155 0.57 1.00 59,324 118 Local Personal Services (Non-Medical) 1,921 1.22 1.01 41,325 216 Local Food and Beverage Processing and Distribution 1,902 1.05 0.91 39,803 280 Local Household Goods and Services 1,116 1.18 1.09 47,609 13 Local Logistical Services 979 0.83 0.70 68,101 (73)
Local Financial Services 734 0.54 0.74 102,009 134
Local Utilities 630 1.40 0.94 179,508 52
GROUP TOTAL / AVG 49,822 1.18 1.04 $66,950 6,041
CITY TOTAL 65,159 N/A N/A $68,612 5,381

Note: LQ = Location Quotient; 10-year job change is from 2010 to 2020. *County LQ provided for comparison purposes.

Source: U.S. Cluster Mapping Project; EMSI; The Natelson Dale Group, Inc. (TNDG).

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
19 TABLE 5. JOB GROWTH/RETRACTION PERFORMANCE COMPARED TO NATIONAL TRENDS FOR LARGEST TRADED

CLUSTERS, EL CAJON AREA, EAST SAN DIEGO, AND SAN DIEGO COUNTY

2010-20 GROWTH PERFORMANCE

BASED ON SHIFT SHARE ANALYSIS
TRADED CLUSTER EL CAJON E. SAN DIEGO S.D. COUNTY

Aerospace Vehicles and Defense - N/A +
Agricultural Inputs and Services + - -
Apparel + + +
Automotive - - -
Biopharmaceuticals + + +
Business Services + + +
Communications Equipment and Services - - +
Construction Products and Services - + +
Distribution and Electronic Commerce - - -
Downstream Chemical Products + + +
Downstream Metal Products + - +
Education and Knowledge Creation - - +
Environmental Services + + +
Financial Services - - -
Food Processing and Manufacturing + + +
Furniture - - -
Hospitality and Tourism - - -
Information Technology and Analytical Instruments - - - Insurance Services - - -
Lighting and Electrical Equipment + - -
Marketing, Design, and Publishing - - -
Medical Devices - + +
Metalworking Technology + - +
Nonmetal Mining - + -
Paper and Packaging + + +
Performing Arts - + -
Plastics - - -
Printing Services - - -
Production Technology and Heavy Machinery + + +
Recreational and Small Electric Goods - - -
Transportation and Logistics - - +
Upstream Metal Manufacturing + + +
Video Production and Distribution + - -
Water Transportation - + +
Wood Products + + -
Note: " + " = growth performance better than expected; " - " worse than expected.

Source: U.S. Cluster Mapping Project; EMSI; The Natelson Dale Group, Inc. (TNDG).

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
20 TABLE 6. JOB GROWTH/RETRACTION PERFORMANCE COMPARED TO NATIONAL TRENDS FOR LARGEST LOCAL CLUSTERS,

EL CAJON, EAST SAN DIEGO, AND SAN DIEGO COUNTY

2010-20 GROWTH PERFORMANCE

BASED ON SHIFT SHARE ANALYSIS
TRADED CLUSTER EL CAJON E. SAN DIEGO S.D. COUNTY

Local Commercial Services - - -
Local Community and Civic Organizations + + +
Local Education and Training + + +
Local Federal Government + + -
Local Financial Services + + +
Local Food and Beverage Processing and Distribution + + + Local Government + + +
Local Health Services + + +
Local Hospitality Establishments + + +
Local Household Goods and Services - - -
Local Logistical Services - + +
Local Motor Vehicle Products and Services - - -
Local Personal Services (Non-Medical) + + +
Local Real Estate, Construction, and Development + + +
Local Retailing of Clothing and General Merchandise - + - Local State Government + + +
Local Utilities + + +

Note: " + " = growth performance better than expected; " - " worse than expected.

Source: U.S. Cluster Mapping Project; EMSI; The Natelson Dale Group, Inc. (TNDG).

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
21 “Candidate” Clusters for El Cajon’s Target Industry Program Table 7, on the following page, provides a list of candidate clusters for the City of El Cajon’s industry targeting program (i.e., business retention, expansion and attraction). The candidate clusters are based on two strategic approaches to industry targeting:

1. Build on El Cajon’s existing core strengths. In some cases (e.g., Local Health Services), the core clusters represent strong continuing growth opportunities that could be the focus of business expansion/attraction efforts. In other cases (e.g., Recreational and Small Electric Goods), the existing core clusters are currently recognized nationally as non-growth or declining industries (in these cases, the City’s industry targeting efforts would appropriately focus on retention/repositioning).

2. Tap into dominant regional clusters that are not currently well represented in El Cajon. This strategic approach would seek to leverage El Cajon’s competitive strengths to capture increasing shares of projected County employment growth. This component of the City’s business attraction/marketing program would focus on the El Cajon’s unique “selling points” relative to the larger regional economy (including the city’s strategic location near several San Diego County area submarkets, a resident workforce that includes large numbers of commuters potentially eager to work closer to home, and the established presence of various manufacturing-related industries). In developing the preliminary list of candidates for the “tap into dominant County clusters” strategy, the consultant has focused on clusters meeting the following criteria:

a. Traded clusters (local clusters are addressed in the other strategic approach) b. Clusters with a high specialization of employment in the San Diego metropolitan area (identified as a “strong” cluster by the U.S. Cluster Mapping project) 9 c. Clusters primarily oriented towards private business investment (in contrast to clusters that are substantially composed of government/nonprofit employment – which are generally considered to have lower economic “spin-off” opportunities) Table 8 summarizes key characteristics for the candidate clusters identified in Table 7. The characteristics include annual average wages, projected 10-year job growth (for San Diego County and the State of California regions), and additional qualitative criteria.

9 The U.S. Cluster Mapping project defines a metro area’s “strong” clusters as those with a high specialization in the region (metropolitan statistical area [MSA]). High Specialization indicates the LQ of Cluster Employment is greater than the 75th percentile when measured across all MSAs. There are 917 total MSAs in the U.S. Thus, for a cluster to be classified as “strong” in the San Diego MSA, its LQ must be greater than the LQ of that specific cluster in at least 687 of the MSAs in the U.S.

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
22 TABLE 7. PRELIMINARY LIST OF CANDIDATE CLUSTERS FOR EL CAJON’S INDUSTRY PROGRAM

STRATEGIC APPROACH LOCAL-SERVING
CLUSTERS "TRADED" CLUSTERS

Build on El Cajon existing
core strengths
• Local Real Estate, Construction,
and Development
• Local Motor Vehicle Products
and Services
• Local Education and Training
• Local Health Services
• Education and Knowledge
Creation
• Aerospace Vehicles and
Defense
• Recreational and Small
Electric Goods
• Environmental Services

Tap into dominant County
industry clusters that are not
currently well represented in
the local El Cajon area

• Communications Equipment
and Services
• Business Services
• Biopharmaceuticals
• Medical Devices
• IT and Analytical Instruments

Source: The Natelson Dale Group, Inc. (TNDG).

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
23 TABLE 8. CHARACTERISTICS OF CANDIDATE CLUSTERS

PROJECTED 10-YR
JOB GROWTH2

DOES THE CLUSTER LEVERAGE

POTENTIAL STRATEGIC ADVANTAGES
AND PRIORITIES?

CANDIDATE CLUSTER
AVG
ANN
WAGE1

SAN DIEGO

COUNTY CA

MFG./R&D
FOCUS

SUPPORTED
BY

REGIONAL

INITIATIVES
"STRONG"

REGIONAL

CLUSTER

El Cajon Existing Clusters
Education and
Knowledge Creation $139,123 5,025 71,238

✔
Aerospace Vehicles and
Defense 129,218 3,070 Job Losses

✔ ✔ ✔
Recreational and Small
Electric Goods 93,411 Job Losses Job Losses

✔ ✔
Environmental Services 72,307 90 576

✔ ✔
Local Real Estate,
Construction, and
Development
76,226 5,165 95,702

Local Motor Vehicle
Products and Services 58,364 Job Losses Job Losses

Local Education and
Training 80,747 2,544 31,162

Local Health Services 87,255 32,293 336,391

Regional Clusters
Communications
Equipment and Services $153,124 Job Losses Job Losses

✔ ✔ ✔
Business Services 116,927 21,484 216,576

✔
Biopharmaceuticals 164,720 841 1,179

✔ ✔ ✔
Medical Devices 133,868 91 2,475

✔ ✔ ✔
IT and Analytical
Instruments 170,297 3,617 51,371

✔ ✔ ✔

Note: 1. Average compensation based on averages for San Diego County. 2. Net number of new jobs.

Source: The Natelson Dale Group, Inc. (TNDG); Employment Clusters Analysis, SANDAG.

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
24 5. EDSP Action Plan
Overview of Action Plan
The EDSP Action Plan is designed to achieve the following major goals:

● Expand economic opportunities for El Cajon’s resident workforce by fostering creation of a diverse range of quality jobs accessible to residents across the spectrum of education/skill levels ● Revitalize El Cajon’s commercial and industrial areas by encouraging private investment that responds to anticipated real estate market demand
● Strengthen the City’s fiscal position by attracting land uses and business types that have the potential to generate General Fund revenue

● Education/workforce development systems
● Entrepreneurial development resources
● The City’s reputation for business/development friendliness ● Land, zoning and infrastructure capacity
● Placemaking activities that leverage El Cajon’s unique locational advantages and sense of community
● Overall image and quality of life
Prioritization of City Resources
The EDSP is intended to provide a “roadmap” to guide the City’s economic development efforts over the next five years (FY 2022-2023 through FY 2026-2027). The Action Plan is intended to assist the City in aligning its program priorities to match the market opportunities identified during this planning effort.

Recognizing that the City’s priorities for economic development are likely to evolve during the course of the 5-year implementation period, the Plan includes guidelines for periodically monitoring the effectiveness of initial efforts and adjusting the recommended programs based on changes in circumstances, available resources, etc.

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
25 Recommended Business Retention/Expansion/Attraction Targets Implementation of the EDSP Action Plan will position the City to be competitive for a targeted business development program including the following elements:
● Retention of existing firms/industries that are in a “repositioning”10 mode due to national/ statewide market and regulatory conditions;
● Expansion of existing firms in strong growth sectors; ● Attraction of new firms based on El Cajon’s competitive advantages within the San Diego/southern California regions; and
● Entrepreneurial development, with a focus on technology-oriented firms aligned with the region’s core industries.

As described in Chapter 4, the EDSP target industry analysis identified a total of eleven industry clusters11 that are of potential strategic targets for El Cajon. Among the eleven clusters, six are recommended as priority targets for this Action Plan:

1. Information technology and analytical instruments

2. Medical devices

3. Biopharmaceuticals

4. Real estate, construction and development

5. Aerospace vehicles and defense

6. Health services

In order to efficiently concentrate available marketing resources on the most promising target industries, the EDSP will include an initial focus on the six priority clusters. The remaining seven clusters would potentially be added as secondary priorities later in the implementation period (i.e., Year 3 or later).

The table on the following page lists El Cajon’s potential target industries (with high-priority targets highlighted in yellow). The table also identifies the likely areas of programmatic focus (i.e., retention, expansion, attraction, and/or entrepreneurial development) most relevant to each industry cluster.

10 In addition to business retention, “repositioning” could also potentially be relevant to a focus on reshoring U.S. manufacturing – a strategy that is currently receiving significant discussion in the economic development profession in light of the pandemic.
11 Industry “clusters” are closely aligned groups of industry sectors representing supply- chain relationships. The “Medical Devices” cluster, for example, includes not only the actual manufacturing of medical devices but also related industries that provide inputs to the manufacturing process and support the sales and distribution of finished products.

El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
26 RECOMMENDED TARGET INDUSTRIES
(INITIAL PRIORITIES INDICATED IN YELLOW)
Focus of economic development activity
Potential Industry/Cluster Targets Retention/
Repositioning Expansion Attraction Entrepreneurial
development
Community
Amenity

Core strengths. Build on El Cajon’s existing core strengths:
● Real estate, Construction and Development
● Aerospace Vehicles and Defense
● Health Services
● Recreational and Small Electric Goods
● Motor Vehicle Products and Services
● Environmental Services

Regional clusters. Tap into dominant regional industry clusters that are not currently well represented in El Cajon, such as:
● Information Technology and Analytical Instruments
● Medical Devices
● Biopharmaceuticals
● Business Services
● Communications Equipment and Services
El Cajon Economic Development Strategy (EDSP)
The Natelson Dale Group, Inc.
27 EDSP Strategies

The EDSP Action Plan is organized around nine major strategies which are outlined below and detailed on the following pages.