Friday, January 16, 2015

Pacific View subcommittee recommendation

Subcommittee will recommend spending $500,000 of borrowed money from delayed debt service to build a temporary museum before figuring out what to do with the site in the long term.


78 comments:

  1. Borrowed from where?

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    1. They mortgaged the Senior and Community Center on Balour.

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  2. One financial boondoggle after another. Half a mil for a museum??? Isn't there already a museum near Quail Gardens? Maybe Kranz can turn it into a beer hall - more his style. This council spends money like a drunken sailor in Tijuana (or Encinitas). Where's the rock and sand fiscal cpnservative - oh yea, she got what she wanted - promises vaporize subsequently.

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  3. This is great news. It means the city will hit fanancial ruin faster. The faster the ruin the faster the salaries and pensions come tumbling down. Imagine all those city workers having to find real jobs..... Lololll. Idiots.

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  4. They will probably have to end up closing The Senior and Community Center where the seniors end up with no where to go.

    Right, where is the magical rock and sand fiscal conservative. Oh, that's right, she was crowned princess and now wears a tiara and has forever free drinks at the bar establishments, so she doesn't give a hoot's ass about anything else.

    And, why has the mayor taken the lone credit for keeping the fire stations open and rejecting Bonde's proposal? There are five members of council, or has she become absent minded in her reign of glory.

    It is going to be a very long two years.

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  5. The seniors have nowhere to go? Shaffer has the answer: in mixed-use sardine cans. From there they can hop on their bicycles and go shopping. Yeah, that's it.

    The only time the City cares about the seniors is when they're using them as bait for the "need" to upzone.

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  6. Ask the Escondido city council how much they spend per year of taxpayers dollars on their museum - in the millions.

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  7. The subcommittee members must be total fucking idiots.

    The solution to all their problems is borrow, borrow, borrow. The problem is Encinitas is not the federal government and can not simply print money like the federal government does.

    When they say borrow, they are saying put a lean on all Encinitas property owner's property because the tax payers are the liable ones.

    I don't appreciate them spending my money on all these trophy projects.

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    1. I hope you let them know.

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    2. Maybe they will invite back Lew Edwards to trick taxpayers into voting for a tax increase. Maybe Green Play, the Parks and Recreations consultants will come back with recommendations on how to charge users more for recreation access.

      How about another option of STOP SPENDING OUR MONEY!

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  8. A correction.

    The approved budget for the current FY included ~$700K in financing charges for the PV bond debt. The timing of the borrowing and close of sale happened later in the year than assumed in the budget, so most of those finance charges will not hit the current FY budget. As I understand it, the proposal is to reallocate the approved but unspent portion of the finance charges to fund improvements to the property for interim uses.

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    1. The comment above sounds like the way Lisa Shaffer communicates. She is famous for making completely crazy decisions and then returning with the comment, "As I understand it..."

      Her lack of understanding that we have seen over and over again does not let her off the hook legally or ethically.

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    2. 8:13,

      Yes, and the money was borrowed by mortgaging the Senior Center. The city couldn't use PV as collateral because it wasn't worth what they paid for it.

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  9. You people need to relax. The subcommitte is tasked with coming up with ideas. Their not tasked on how to pay for it. That's Council's job.And this is only a recommendation. Council has yet to hear it.

    Play the hand your dealt, not the one that you want.

    Then again, why bother. The only subcommittee recommendation you folks would be happy with is "rescind the sale"..........

    - The Sculpin

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    1. With a 3-2 majority, I suspect the council will follow the subcommittee recommendation.

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    2. Council hasn't yet met an asset they're not willing to put up in order to "figure out how to pay for it." Staff (Vina, oh my now who will tell them what to mortgage??) comes up with the scheme, Council approves.

      Not to worry Sculp, they'll get there....

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    3. I agree with EU. The Council will go along with the subcommittee's recommendation.

      So relax Sculpin (bottom feeder). The money will come from The Senior Center, but why should you care?

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    4. 1:29 PM

      Not sure why some people call The Sculpin a "bottom feeder". Is anyone who doesn't think in lockstep with others on this blog automatically bottom feeders? And if you're wondering The Sculpin isn't me.

      12:39 PM

      It was the 3 Council members who pushed buying PV not Vina unless Vina was using his Jedi Mind Trick powers to make the council members only think it was their idea.

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    5. Helloooo..the Sculpin is a bottom-dwelling fish. Here: http://en.wikipedia.org/wiki/Sculpin. Learn something.

      He calls himself the Sculpin.

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    6. Sculpin is also a world-class IPA.

      And a thoughtful commenter.

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    7. Agree on your first point.

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    8. 5:29 Thoughtful commenter----no way. I have read his comments and he is quite the "know it all" and doesn't mind letting one know that.

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    9. Sculpin IPA vs. Sculpin benthic fish, dwelling on the bottoms of water bodies. Who says this blog isn't educational. I assume we'll ignore the two US submarines named Sculpin.

      10:42 PM Sorry, but I agree with 5:29 PM that Sculpin is a thoughtful commentator who at times does present opinions strongly but that is hardly unique on this blog. If you think Sculpin is a "know it all" perhaps you need to find another blog.

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    10. 10:52 I don't think any one needs your permission to find another blog. Are you Mr. or Mrs. Sculpin?

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    11. 7:08 PM

      Why do so many people here automatically jump to the conclusion that there must be some vested interest when a post disagrees or challenges their position. Did I miss the kool-aid distribution?

      One, I'm not Mr/Mrs Sculpin and have no idea who it is other than he/she lives in Olivenhain.

      Two, why do you think my suggestion is giving you my permission? Why would I care?

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  10. As I understand it, the $500K is part of the completed bond issue and not additional borrowing. This still makes it borrowed money that has to be repaid.

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  11. Um, no.

    Council did not mortgage the Senior Center and plan to use the borrowed funds to pay interest on the loan. That's a self licking lollipop.

    The debt service payments were set aside from the general fund. Given the timing of the transaction, most of the year 1 debt service charges will not be needed.

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    1. Ok. Fixed it.

      Yes, the council did mortgage the Senior Center and this money is coming from a delay in the start of the mortgage payments.

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    2. Who comes up with these Ponzi schemes? Is it standard practice?
      Looks like one might eventually run out of shells to shift around on the table.

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    3. Lease Revenue Bonds are a common method to finance capital improvements. The City agrees to lease to the Encinitas Public Financing Authority (EPFA) Fire Station 5 and the Community Center. EPFA is the financing authority for the City, San Dieguito Water District, etc. The City will then lease back those facilities from the Authority at a payment level that will cover the repayment schedule for the new bonds. The bonds are paid by the Authority from the revenue generated from the lease payments. The City agrees to budget for the lease payments each year during the term of the bonds. The City retains title to the leased facilities and I don't think they are used as collateral as it is commonly understood. It's not a Ponzi scheme but sleight of hand to avoid debt obligations that would require a public vote for approval.

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    4. 12:18 PM
      Lease Revenue bonds is a common fraud method to finance projects that the residents wouldn't pass with a public vote. The Encinitas Public Financing Authority (EPFA), is currently comprised of the City and the SDWD both run by the City Council.
      The EPFA provides a layer of protection for the City Council and removes them from the full responsibility of their bad decisions.

      There's no revenue generated from the majority of lease revenue bonds - a fantasy manufactured by the city manager and City Council.

      What properties that will be used for collateral is recited in the bond offers.

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    5. 7:18 PM

      The revenue stream is merely a way to "guarantee" repayment of the bonds not to generate revenue per se. The bond documents are pretty dense but I didn't see anything about collateral.

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    6. Technically, there is to be a "lease revenue stream," to repay lease revenue bonds. The debt service payments should not simply come out of the General Fund.

      But this city and other public agencies, including the State, have a way of getting around the lease revenue stream requirement. Technically, if there is no lease revenue stream, the public should get to vote on General Obligation Bonds, as we do for school bonds. But the government here, locally, and elsewhere, is infamous for not following its own rules, and for usually giving more credence to lawyers adept at twisting the law, capitalizing on loopholes, rather than paying attention to civilian experts.

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  12. Fricking morons stealing our children's future for their own trophy project.

    Boot Kranz and Shaffer.

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  13. Here's a rundown on what collateral was used for recent borrowings:
    1. Hall property bonds -- the property itself
    2. Hall property park construction bonds -- the Public Works yard (Mossy
    Chevrolet)
    3. Encinitas Library bonds -- the Library. Property couldn't be used, as the city leases half from the county and the other half isn't worth enough.
    4. City Hall bonds -- the whole complex

    Every asset is encumbered. This is why Vina brought in Lew Edwards to do
    a sales tax increase. Options were very limited. Except for the NO votes of Gaspar and Muir, we would be facing a vote on increasing our
    sales tax. It takes a super majority to put a tax increase on the ballot.

    Agreed that Vina didn't push the purchase of Pacific View. Barth, Shaffer, and Kranz did. Vina had to come up with the financing scheme.

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  14. I don't quite understand. If for some reason the City cannot repay all of the debt, who gets the properties?

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    1. Doesn't matter, but if the city were to default, a judge could order the sale of collateral and distribute the proceeds proportionally between individual bond holders.

      It won't happen.

      Google Meredith Whitney. She predicted muni bond defaults en masse in 2008--she was wrong big time.

      At some point, public sector retirement plans will have to shift from defines benefit to defined cobtribution plans. This conversion happened in the private sector in the 90s. It will be painful, and a few municipalities will have to go BK for unions to get serious about change, but it's unlikely Encinitas will be one of them.

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  15. Maybe the City Council is getting their advice from Bernie Madoff.
    Derivatives are next......

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  16. Bad smell all along the beach. Not a normal low tide thing. Smells like burning tires, diesel, or some
    kind of chemical. Has lingered for at least a half hour. Light onshore breeze. Visibility is good, no sign of a tanker fire offshore.

    Very strange.

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    1. It's happened before:

      http://encinitasundercover.blogspot.com/2012/07/dont-panic-its-organic.html

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    2. Yup. Remember those events. This is a different smell. Something burnt. Like a third world city without vehicle emission controls.

      Still could be a natural source firm the ocean, but very different from the past events.

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  17. I believe the gas is jet fuel which smells just like kerosene. Not too many people are familiar with the smell of kerosene in our electric age.... Pretty damn strong, but a little atomized goes a long way.

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    1. That smell. Do you smell that smell?

      The recent past is streaming/smelling up onto us from beneath the sands.

      I remember attending a city hall workshop ten years ago and being told at a city public-hearing about flooding along Vulcan Avenue that there is a jet fuel line from EL Toro to San Diego and that from time to time, the pipes leak and the neighbors have to wait for the DoD to send out Construction Engineers from the O.C. to dig underneath and keep the rocket fuel pumpin', 'cause the County/City/Navy/UCSD were always worried about spies and terrorism: damage to the secret pipeline.

      I always envisioned 'Juanita's' owners frying the tacos etc... in rocket fuel: tapping into the source, the fuel accounting for their splendid 'taste'.

      An artery of white freezing vapor streaming from up north under the freeways. all that fuel manufactured in the state of Washington flowing south beneath us, quietly insuring that 'we' will have the necessary means to stop the 'russkies'. V-1's, Air Coryell, the glider ports, Mexican border only 30 miles south.

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    2. It's true!

      http://m.utsandiego.com/news/2012/sep/18/sherman-underground-pipeline-little-known-in/

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    3. That pipeline is used for everything from nat gas, to JP-1, to Jet A, to gasoline, to kerosene. When they switch product, they shunt off a certain amount where products mixed into a tank for reprocessing.

      The terminus of the pipeline is the tank farm up the canyon from Qualcomm stadium. Leaks under the tank farm are a big problem for the redevelopment of Qualcomm that might eventually help fund a new downtown stadium for the Chargers.

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    4. And oh yeah, all of your gasoline flows through that pipe. Some we don't have refineries in the county, crude is cracked into component hydrocarbons up north. Every brand of gasoline comes from the same tanks down in mission valley. They each throw a trace amount of additives into each truck, but otherwise, it's the same drink.

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  18. By the way, gas is only $2.28 at the gas station in Leucadia on N 101!

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  19. The former Mobil station that I refused to buy anything from, is now The Berry Brothers and has had close to some of the lowest fuel prices in all of SD county since going independent. I keep track and on any given day they have been 25 cents or so cheaper per gallon than any others in Encinitas. Gas Buddy is everyones friend and if I am planning to fuel up, I always confirm ahead of time that they are the cheapest prices around. I do not have any relationship with their business except to buy there when the time comes. Good riddance to Mobil and thanks for leaving our environs. Gas Buddy thanks.

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  20. Catherine Blakespear has hit the road running in her role as the new council member.

    She is proposing that the council approve a new layer of legal hoops for anyone filing an appeal to the council - a pre-appeal mandatory mediation meeting held in private. The participants would be the appellant, the opposite party, a city staff point person, and a volunteer mediator. She believes that " Our appeal process is public and messy" and that her system would avoid that.

    She provides examples of what can be accomplished.
    "For instance, the two sides could agree to plant more trees as a barrier, language in a waiver could be highlighted in bold to assure that all animal owners are on notice that animals will be unattended overnight, a farm owner could agree not to hold classes in the afternoon when neighborhood children are riding bikes in a cul-da-sac, a neighbor could request that all visitors refrain from smoking on a property, money could be donated to a charity chosen by both sides, the placement of a driveway could be moved to accommodate a heritage tree, the city could allow an extension of time to move toward compliance, or one side could offer an apology for an action taken prematurely and without permission. These types of solutions are not typically reached in a public, highly structured, confrontational, and adversarial appeal process."

    She also provides the monetary advantages for the pre-appeal mediation.
    "4. Saves Staff and City Time and Money: Disputes that can be settled allow the City Council and the city staff to spend more time on policy decisions and less time resolving disputes. Preparing for an appeal requires hours of staff time drafting what is essentially a position paper defending staff’s past decisions. The City Council, the people involved in disputes, the neighbors who write letters and come to speak and the city staff would all benefit from having the dispute handled privately."

    And the finally reason is to allow the city staff to provide their defense:
    "The city staff member is there to provide clarity on the options allowed by city code, to offer support, to stay informed and to avoid the situation where both sides blame the city staff and there is lack of consensus about the city staff’s position and the requirements of the code."

    How many residents want to go through a mandatory pre-appeal mediation procedure before the council will hear their appeal?

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    1. Sounds smart to me.

      I remember council wasted time on an appeal a few months back of an application to register a granny flat on Arden. The neighbor appealed because he misunderstood the law. He thought it was a requirement that the unit be continuously occupied to qualify for the program.

      After wasting many hours preparing and presenting the appeal, the result was a big fat nevermind once staff explained the affordable unit program clearly.

      The applicant even had to hire a lawyer. The cost, inconvenience, and public nature of the dispute makes it less likely the neighbors in this case will bury the hatchet and get along.

      This dispute could have been handled in a more efficient, effective way, as CB describes.

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    2. Just more hoops to jump through, more legal mumbo jumbo before it finally makes it's way to the council. A big time waster....
      Dump Blakespear.

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    3. sounds smart to me good job Catherine.

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    4. Happy happy developer-speak.

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    5. I think it could be helpful. The present appeal process does polarize one neighbor against another, or a business, including a developer, against nearby neighbors.

      The present system isn't working well, as staff is not neutral.

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  21. 7:27 AM

    Smart? She is placing another obstacle to prevent appeals. She doesn't want to be bothered with deciding. Another Lisa Shaffer elitist attitude. She know want is best for the residents.
    7:45 AM is right. She has no respect for residents.

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  22. Prevent appeals?

    Nope.

    You are thinking of arbitration, not mediation. No citizen who wants a hearing before the council can be denied.

    This is just a step, out of the distorting glare of public meetings, to determine if a dispute can be resolved quickly. I for one would rather have council focused on important city business, or disputes that are more intractable.

    Go back and watch the video of the Arden case. Big waste of time and money for all involved. Never should have been on a council agenda.

    Common sense.

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    Replies
    1. Couldn't Arden be avoided by having knowledgeable and helpful staff explain the law to the appellant?

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    2. 10:40 AM

      You're assuming first that staff didn't explain the law and second that the people listened. With all the trashing of staff that goes on here, why would you think anyone would listen to them. Oh I know, if only we had better staff.

      Besides, in the Arden case there was a grey area about whether the unit had been modified that prevented it being used as a living space. Sometimes people will only accept the answer in a formal setting like a council hearing. Also, it doesn't hurt the council to be exposed periodically to these kinds of situations.

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  23. 10:07 AM
    She's still burning over losing her appeal case before the council.

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  24. I do hope that Blakespear realizes that we have a city attorney that gets paid for guiding and representing the council and staff on legal issues.




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    1. Sabine? The $10 million dollar out-source attorney? He should have left on the same train as Vina.

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    2. Toot-toot! Load em up and clean house!

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  25. Blakespear is taking the position that staff is right and can never be wrong. Residents who appeal a decision are wrong and can never be right.

    Appellants that refuse the mandatory mediation lose their right to appeal to the city council.

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    1. Seriously 12:54. Is that part of the deal?

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  26. Another step (hoop) for residents to jump through is just what the City wants. Funny how badly Shaffer, Barth, Kranz, and now Blakespear want us all to get along.

    Why doesn't she put an item on the agenda to make staff stop screwing with residents? We'd be a lot less at odds if the council got certain city workers under control. Leave extra steps out of it and crack down on city shenanigans. Blakespear's blaming the messenger.

    Ah, shades of Barth and especially Shaffer....

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  27. Can she do this without consent of the people on a ballot? Can the City Council just decide this is the way to go? If so, this scares me. I once took an appeal to Council. The room was packed and I cannot help think that swayed the Council. We really don't have that many appeals to the City Council and I have watched Encinitas Politics for a long time. Hopefully, if they do this, they won't hire a mediator. Perhaps Catherine thinks she would do it, since she is a lawyer. That, however, would really be a conflict of interest, as I am sure she already knows.

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    1. This is nothing but a ruse on the part of the city. All she wants is too add more layers of government to already burdened citizens. More layers = more money in city hands as the reach deeper and deeper into the publics pockets. Throw them all out of office, shun them, boycott them. Protest protest protest!!! Ignore their laws. Ignore their advice. Fight them at every turn. They, all the councils which have been full of idiots, have destroyed this city.

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  28. PV is a money pit. Why don't they spend that money fixing Vulcan so it doesn't flood when it rains, blocking access to Ecke to pick up kids? These fools want to build golden monuments to themselves while the underlying foundation is crumbling.

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    1. 12:17 has a platform. Run for office.

      The council majority who voted for PV were elected by a majority of voters who feel you present a false choice. We can do both.

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  29. Incorporation was the worst thing that ever happened to Encinitas.

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    1. I have to disagree, even thought I don't like what is happening in our city. First, we would never had had Prop. A, as we would still be a part of the County. We also might have 1 Paseo that will probably go into Carmel Valley despite protests. We would not have had any control of what happened in our city, the county would control us. And, if you take a look at what the County of San Diego has done in many parts of the County, it is much worse than what we have. All we really need are some fiscally responsible people on the Council and staff. If were in the County that also would be problematic. Incorporation wasn't the worst thing that happened to our area, it has been the people who have more recently been on the City Council. Change that, change up some staff, and we could be right on track. It just takes some people willing to run, and show some cajones.

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  30. Barth was responsible for a toxic tone at city hall for a long time. Stocks didn't help matters. A divided council = a divided city with bad leadership and direction. We need to vote in emotionally mature candidates.

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  31. I'm calling it now. Shaffer will not run again- she knows she's get the boot.

    Dalakranz gets the boot in 2016!!

    Muir gets elected.

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  32. Replies
    1. What 3 candidates will come in ahead of him?

      Muir, Lerch, ???

      Republicans and Community Character folks had better come up with some pretty strong candidates if they want to dislodge any incumbents in 2016.

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    2. Shaffer.
      She loves the attention. She'll run again, after she "reconsiders" her previous statements to be a one-termer.

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