BLUE FOLDER ITEM
Blue folder items are additional back up material to administrative reports and/or public comments received after the printing and distribution of the agenda packet for receive and file.
CITY COUNCIL MEETING
JULY 15, 2025
K.1 PUBLIC PARTICIPATION ON NON-AGENDA ITEMS
• PUBLIC COMMUNICATIONS
From: Mark Nelson (Home Gmail)
To: CityClerk; James Light; Paige Kaluderovic; Brad Waller; Chadwick B. Castle; Scott Behrendt; Zein Obagi Subject: Public Comment - RBCC Meeting 7-15-25, Non-Agenda Items Date: Tuesday, July 15, 2025 1:14:37 AM
Attachments: BCHDs allcove - a $6.3M Grant with a $172M Cost.pdf CAUTION: Email is from an external source; Stop, Look, and Think before opening attachments or links.
BCHD has signed an agreement for $6.3M in funding for an ALLCOVE building.
Unfortunately, according to the failed Measure BC, the building will cost $15M although BCHD seems to be manipulating the amount.
BCHD included all of SPA8 in its bid proposal to reduce the average income and increase the diversity of their bid package. As a result, BCHD accepted a 30-year obligation to provide ALLCOVE to all of SPA8s 1.4M population while also operating the building. All this with no LONG TERM FUNDING.
That is an enormous, $170M burden on resident taxpayers of the 3 beach cities. stopbchd 3 minutes ago 1 min read
BCHDs allcove - a $6.3M Grant with a $172M Cost
BCHD applied for a $6.3M grant for an allcove building. Allcove is currently housed in an ocean-view, purposeremodeled suite on 4th floor of 514 N Prospect.
In order to get the $6.3M, BCHD had to agree to the two key terms:
Operate the new allcove building for a MINIMUM of 30 Years Provide allcove services to the Priority Populations of LA County SPA8 for a MINIMUM of 30 Years BCHD's acceptance of the terms expanded the service area for allcove from 120,000 population of the District Cities to the 1.4M population of SPA8. The District is 9% of SPA8 on a population basis. On a Priority Population basis, the District Cities are likely no more than 2% of the allcove service area's target population.
BCHD conducted NO FINANCIAL ANALYSIS of the 30-year liability of operation for 1.4M population SPA8.
Based on credible estimation, that 30-year liability is $172M in return for a $6.3M grant. https://www.stopbchd.com/post/details-of-the-170m-bchd-district-taxpayer-liability-for-allcove-all-caused-bybchd-accepted-a The document below highlights the key terms of the BCHD allcove grant deal for $6.3M.
Since the District is only 9% of SPA8, yet bears 100% of the 30-year cost, it's unclear why BCHD would foist such a negative NPV deal onto Taxpayers of the District only. There is no long term funding.