[Call to Order]
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LADIES AND GENTLEMEN, THANK YOU FOR JOINING US FOR THE OCTOBER 4TH BOARD OF SUPERVISORS MEETING.
CALL THE MEETING TO ORDER, PLEASE.
MADAM CHAIRMAN, YOU HAVE A QUORUM.
TONIGHT, OF COURSE, IS A WORK SESSION, AND WE HAVE A PRESENTATION TONIGHT, WHICH IS THE ANNUAL REGIONAL ECONOMIC UPDATE.
IT'S SO GLAD TO HAVE YOU HERE AGAIN WITH US.
GREG GORDON, COURSE CHIEF ECONOMIST FROM HAMPTON ROADS.
[A Annual Regional Economic Update. Receive presentation from Greg Grootendorst, Chief Economist, Hampton Roads Planning District Commission. ]
WE HAVE, JUST FORGET WAS AHA.THAT'S NORMAL ON GOOD TO GO? YES.
I WAS JUST DOWN BY THE TELLING, UH, MR. MORGAN.
SO, UH, ALWAYS FUN TO COME UP.
UM, I JUST WAS GOING TO, UH, QUICKLY TAKE YOU THROUGH A LITTLE BIT OF WHAT'S GOING ON, UH, THROUGH THE NATION AND THE REGION.
UH, PROVIDE A BRIEF ECONOMIC PERSPECTIVE.
UM, THINGS ARE QUITE STRANGE RIGHT NOW.
AND YOU ALWAYS SAY THAT EVERY YEAR.
I DON'T, I DON'T SAY IT EVERY YEAR, BUT LAST COUPLE YEARS.
THIS IS REALLY, I MEAN, WE'RE IN A, WE'RE KIND OF IN THIS UNPRECEDENTED PLACE.
SO THE, WHAT, WHAT'S IN FRONT OF YOU HERE IS A SLIDE THAT SHOWS A NATIONAL ECONOMY IN TERMS OF GROSS PRODUCT.
UM, THE BLUE LINE IS, IS WHAT THEY CALL POTENTIAL GDP.
AND THAT'S IF EVERYTHING'S WORKING RIGHT AND EVERYTHING IS GOING AS IT SHOULD, THAT'S WHERE WE SHOULD BE.
AND THE RED LINE IS WHAT'S ACTUALLY HAPPENING WITH THE TWO GREAT BARS SHOWING RECESSIONS.
SO YOU CAN SEE, UH, A LOT OF MY SLIDES HERE ARE GONNA GO BACK TO THE BEGINNING OF THE GREAT RECESSION, 2007, BUT YOU CAN LOOK, YOU CAN SEE HOW LONG IT TOOK FOR GROSS PRODUCTS, NATIONAL GROSS PRODUCT TO GET BACK, UM, TO, TO POTENTIAL AND THE DIFFERENT SHAPE OF THE TWO RECESSIONS, THE GREAT RECESSION BACK IN 2008 VERSUS THE COVID RECESSION.
UM, BUT IF I COULD DIRECT YOUR ATTENTION TO THE RIGHT, UH, THE FAR RIGHT, YOU COULD SEE WE'VE HAD TWO QUARTERS OF NEGATIVE GDP GROWTH, WHICH SEVERAL WOULD CLASS.
MANY WOULD CLASSIFY THAT AS A RECESSION.
THAT'S ACTUALLY NOT QUITE THE DEFINITION OF A RECESSION.
UM, BUT IT IS CERTAINLY, UM, A CURIOUS THING.
UH, WHEN YOU SEE TWO NEGATIVE QUARTERS AND PEOPLE AREN'T QUITE CERTAIN WHAT THAT MEANS, TYPICALLY, IT'S A CLEAR INDICATOR OF RECESSION.
BUT THIS IS KIND OF THE ANOMALY.
UM, THOSE BLUE BARS THERE SHOW MONTHLY GAINS AND EMPLOYMENT, UM, MONTHLY GAINS IN NATIONAL EMPLOYMENT OVER THE PAST COUPLE YEARS.
GOING BACK TO JANUARY OF 2021, YOU CAN'T REALLY HAVE A RECESSION.
OR EACH, EACH MONTH IS A CUMULATIVE YES, MM-HMM.
SO ON AVERAGE, WE ARE ADDING ABOUT 500,000 JOBS A MONTH NATIONALLY, GOING BACK FOR ALMOST TWO YEARS.
UH, THAT DOES NOT LOOK LIKE A RECESSION.
UM, SO WE'RE HAVING ECONOMIC INDICATORS POINT IN VERY DIFFERENT DIRECTIONS.
THAT RED BAR, THERE IS A LONG TERM AVERAGE.
ESSENTIALLY, WE'RE EXCEEDING THE LONG TERM AVERAGE BY ALMOST A FACTOR OF FOUR IN TERMS OF JOB GROWTH.
UM, SO TWO NEGATIVE QUARTERS OF GDP DOESN'T MAKE A RECESSION WHEN EMPLOYMENT IS SO STRONG.
BUT DO, DO YOU FORECAST EMPLOYMENT STAY THIS STRONG HERE IN THE NEAR FUTURE? CAUSE WELL, HERE'S THE, THE BEAUTY OF, UM, ECONOMIC FORECASTING, IT'S PRETTY MUCH USELESS
AND, AND EVERY MONTH I READ ABOUT HOW FAR ECONOMISTS WERE OFF IN THEIR PROJECTIONS.
SO IF I TOLD YOU THAT I BELIEVE ONE THING OR ANOTHER REGARDING WHAT'S GONNA HAPPEN HERE IN THE FUTURE, I WOULD BE WRONG.
UM, AND THE DEGREE I JUST, IT, IT'S SO UNCERTAIN AND IT'S SO UNCLEAR.
UM, BUT THERE CERTAINLY ARE CONCERNS COMING UP WHETHER WE CONTINUE TO, TO SEE THIS JOB GROWTH, UM, OR NOT.
THERE'S A FEW THINGS THAT ARE GOING ON.
LIKE IF, IF WE GO BACK TO THIS ONE REAL QUICK, RIGHT.
WE'RE, WE'RE SEEING, UM, THE BUSINESS COMMUNITY
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IS REALLY SCARED TO INVEST MM-HMM.UM, INTEREST RATES ARE GOING UP SO THAT, THAT THE HOUSING MARKET'S COOLING.
LIKE THERE ARE THINGS THAT ARE REALLY, UM, CAUSING SOME CONCERNS WITH GROSS PRODUCT.
BUT WHEN YOU GET TO THE EMPLOYMENT COMPONENT, WE'RE SEEING NATIONALLY, UM, WAGES ARE GOING UP, WAGES ARE, ARE, ARE RELATIVELY STRONG, ESPECIALLY ON THE LOWER END.
PEOPLE ARE LOOKING AT THE AVERAGE WAGES.
YOU KNOW, MY, MY DAUGHTER, SHE STARTED WORKING A YEAR AND A HALF AGO AND SHE WAS MAKING, UH, 7 35 AN HOUR, AND NOW SHE'S MAKING $20 AN HOUR, BUT MY JUST DIDN'T GO UP AT THE SAME RANGE.
BUT PEOPLE ON THE LOWER END, CERTAINLY THEIR WAGES HAVE GONE UP.
YOU KNOW, YOU'RE LOOKING EVERY, YOU KNOW, ESSENTIALLY EVERY JOB NOW IS STARTING AT AROUND 14 TO $15 AN HOUR.
SO WAGE PRESSURE IS BUILDING UP ON THE LOWER END, AND IT'S PULLING PEOPLE INTO THE ECONOMY.
UM, SO YOU MAY HAVE HEARD OF THE GREAT RESIGNATION PEOPLE WERE TALKING ABOUT, EVERYBODY'S LEAVING.
WELL, THEN THEY'RE LIKE, WELL, I GUESS IT'S NOT THE GREAT RESIGNATION BECAUSE THEY'RE LEAVING AND THEY'RE GOING IN ELSEWHERE.
BECAUSE, YOU KNOW, AS IT TURNS OUT, IF YOU QUIT YOUR JOB, YOU'RE MUCH MORE LIKELY TO GET PAID MORE THAN EXPECTING YOUR CURRENT EMPLOYER TO PAY MORE.
SO WE'RE SEEING THIS AS MORE OF A GREAT RESHUFFLE, BUT THE REALITY IS PEOPLE ARE GUESSING AND THEY'RE GUESSING ABOUT WHAT'S GONNA HAPPEN NEXT MONTH WITH EMPLOYMENT GROWTH.
AND THEY'RE GUESSING WITH WHY THIS IS TAKING PLACE.
AND I, I, I'VE READ SO MANY ARTICLES THAT LEAD US TO BELIEVE THAT WE REALLY DON'T HAVE A GOOD HANDLE WHAT'S GOING ON, BECAUSE WE DON'T HAVE ACCESS TO STRONG DATA.
SO IN THREE YEARS, I CAN TELL YOU WHAT HAPPENED.
WELL, AND WHAT I CAN, I CAN TELL YOU WHAT'S GONNA HAPPEN IN THE NEXT FEW MONTHS IN THE TECHNOLOGY SECTOR, AT LEAST BECAUSE OF THE LACK OF THAT INSIGHT, AND THAT IN THAT CONCERN, TECH COMPANIES ARE DRASTICALLY DRAWN BACK ON THEIR NEW HIRES.
COMPANIES THAT HAVE ALWAYS HIRED PEOPLE ARE NOW FOR THE FIRST TIME RELEASING PEOPLE.
AND, AND THAT THE OTHER OBSERVATION IS THE LOW RANGE RAISING THE RATES IS GOOD, EXCEPT THAT IT ALSO DRIVES UP THE PRICES OF GOODS AND SERVICES.
SO THAT SAME, THAT EXTRA MONEY ISN'T GETTING 'EM AS FAR AS IT DID BECAUSE NOW COST, IT'S COST THEM MORE TO BUY GOODS AND SERVICES.
SO IT'S LITTLE GIVE AND TAKE THERE.
I WOULD SAY FOR PEOPLE THAT ARE IN THE MIDDLE INCOME AREA, INFLATION IS CERTAINLY OUTPACING WAGE GROWTH.
PEOPLE ON THE LOWER END OF THE SCALE, WAGE GROWTH IS OUTPACING INFLATION.
SO THERE IS A, THERE'S CERTAINLY A DIFFERENT THERE, BUT YOU KNOW, TO YOUR, TO YOUR POINT THAT WE ARE SEEING NEGATIVE OR, OR DISINVESTMENT FROM BUSINESS BECAUSE THEY'RE BEING CAUTIOUS, RIGHT? YEP.
UM, IF WE LOOK AT INDUSTRY EMPLOYMENT, SO LAST MONTH, UM, THE US JUST ESSENTIALLY THEY RECAPTURED ALL THEIR, THEIR LOST COVID JOBS.
SO THEY'RE, THEY'RE BACK TO WHERE THEY WERE PRE COVID, THEY'RE JUST A LITTLE BIT UP.
SO WHAT YOU SEE HERE, IF YOU ADD ALL THE GREEN BARS WITH THE RED BARS, IS YOU GET ZERO EMPLOYMENT GROWTH.
BUT YOU CAN SEE THE SHIFT IN INDUSTRIES.
SO THERE WERE SOME WINNERS AND LOSERS.
AND SO, UH, LOOKING AT THE TOP PROFESSIONAL SERVICES, UH, TRANSPORTATION, WAREHOUSING, RETAIL TRADE, HAVE ALL SEEN GROWTH VERSUS PRE C UH, AT THE US LEVEL, IF YOU LOOK ON THE BOTTOM, LEISURE AND HOSPITALITY TOOK A SIGNIFICANT HIT.
NATIONWIDE, LOCAL GOVERNMENT HAS SUFFERED STATE GOVERNMENT, OTHER SERVICES, AND EDUCATION, HEALTH IS, IS A LITTLE BIT DOWN, BUT YOU COULD SEE NOT EVERYBODY HAS, HAS BEEN TREATED EQUAL.
SO, MINING, MINING, WHAT WAS THE ELEMENT? I MEAN, UH, YEAH.
NOW REMEMBER, THAT WAS A BIG ONE.
AND THEN SO MO, MOST OF THAT IS ACTUALLY HEALTH.
SO, UH, LIKE PUBLIC SCHOOL EDUCATION IS, IS INCLUDED IN LOCAL GOVERNMENT.
UH, BUT YOU KNOW, IF YOU ARE A PRIVATE ENTITY THAT DOES TUTORING OR EDUCATIONAL SERVICE, THAT WOULD BE CONSIDERED EDUCATION AND HEALTH.
SO IT'S A LITTLE BIT OF, BUT MOST OF THAT'S GONNA BE HEALTHCARE.
SO DURING THE GREAT RECESSION, IT WAS HEALTHCARE AND EDUCATION WERE THE TWO GROWTH SECTORS WHERE EVERYTHING ELSE WAS, THEY TOOK OFF.
AND THEY, AND, YOU KNOW, EDUCATION OR THE HEALTHCARE SECTOR IS KIND OF IN, IN A STATE OF FLUX RIGHT NOW TOO, BECAUSE THEY'RE PAYING GREATER AND GREATER WAGES.
BUT, UM, MY WIFE IS A DIRECTOR OF NURSING OVER AT SENTARA.
I MEAN, THEY TOOK IT HARD, UH, GOING THROUGH COVID, AND THERE WAS JUST A LOT OF TURMOIL.
AND, YOU KNOW, MY DAUGHTER WAS SAYING TO MY WIFE, SHE KNOW, JUST TELL MR. MORGAN, SHE'S IN COLLEGE NOW, AND SHE WANTED TO BE A NURSE LIKE HER MOM.
AND, AND I THINK THAT THAT MESSAGE THAT YOU DON'T WANT TO BE IN THIS PROFESSION NO MATTER WHAT THEY'RE PAYING YOU, IT'S JUST NOT WORTH IT, UM, IS KIND OF RESONATING, ESPECIALLY WITH PEOPLE WHO ARE IN THE HEALTHCARE INDUSTRY WHO LIVED IT.
THEY SAID, YOU KNOW, I CAN DO, UH, THIS IS TOO HARD ON ME.
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ARE THERE FOR HEALTHCARE.UM, BUT THE PEOPLE DON'T WANT THE JOBS.
AND IT'S NOT JUST HEALTHCARE WHERE THAT'S AN ISSUE.
UNFORTUNATELY, MILITARY, SAME THING, RIGHT? WE HAVE A, WE, WE HAVE A, WE HAVE A GLU, WE HAVE A LOT OF OPEN POSITIONS IN THE MILITARY, AND WE DON'T HAVE PEOPLE, I THINK, UH, ARMY ESPECIALLY SEEING PRETTY SIGNIFICANT, UM, THEY'RE MISSING THEIR RECRUITING TARGETS BY A GREAT DEAL.
SO THAT CAN IMPACT US HERE BECAUSE WE WANT THOSE PEOPLE.
AND, UH, AND WE'RE NOT GETTING THEM.
UM, GOING BACK TO INFLATION, INFLATION THAT, YOU KNOW, IS, IS REALLY SCARY FOR BUSINESSES AS WELL.
AND THIS IS ANOTHER REASON YOU'RE GONNA SEE SOME OF THE DISINVESTMENT BECAUSE, UM, YOU KNOW, TWO THINGS COME WITH INFLATION THAT BUSINESSES HATE AND IT'S UNCERTAINTY AND VOLATILITY.
AND SO THIS IS ALSO WHAT YOU SEE IN THE TECH INDUSTRY.
YOU'RE NOT CERTAIN IF IT'S WORTH MAKING INVESTMENTS, IF THEY'RE GONNA BE THIS COSTLY, DO YOU PUT IT OFF? DO YOU WAIT? AND SO THAT'S KIND OF WHAT WE'RE SEEING.
AND THAT, THAT CERTAINLY HITS AT THE GROWTH DOMESTIC PRODUCT NUMBERS, UH, WHERE WE'RE SEEING REDUCTION.
UM, THERE'S GOING TO BE A LACK OF INVESTMENT DUE TO INFLATION UNTIL WE GET A HANDLE ON THIS.
IT'S, IT'S, YOU, YOU'RE PLAYING CATCH UP.
BUT WE ARE SEEING THEM OBVIOUSLY BUMP UP INTEREST RATES, AND THAT'S GONNA BUMP UP MORTGAGE RATES, WHICH IS GONNA FURTHER COOL OFF THE HOUSING MARKETS.
SO THAT'S REALLY VERY HARD, THE MARKET.
IT'S, IT KIND OF INTERESTING THAT, YOU KNOW, WHEN YOU LOOK AT THIS AND, AND WHAT WE HEAR NOW, I MEAN, FOR US THAT WE'RE, YOU KNOW, HAVING, RAISING FAMILIES AND DOING A LOT OF STUFF IN THE SEVENTIES AND EIGHTIES.
I MEAN, WE REMEMBER INFLATION WAS OUTRAGEOUS.
I MEAN, YOU'D BUY A HOUSE, YOU'RE PAYING 13% INTEREST ON A HOUSE, UM, AND THEN YOU GET, SO THEN WE DRAW A SUDDEN, I DIDN'T THINK I'D EVER SEE WHEN YOU COULD GET A HOUSE FOR, I MEAN, FOR YEAH.
DOWN TO 3% OR TWO, 2.8, WHICH WAS LIKE WHAT MY PARENTS WERE ABLE TO DO BACK IN THE FORTIES AND THE FIFTIES.
AND NOW HE'S TALKING ALL THIS, EVERYBODY'S GOING, OH MY GOSH, OH MY GOSH, THIS INFLATION THING.
BUT I MEAN, FOR US THAT WERE IN THAT GROUP IN THE SEVENTIES AND EIGHTIES, THIS, THIS IS NOT INFLATION
THIS DOESN'T, IT DOESN'T FEEL LIKE IF, BUT IF YOU'RE NOT USED TO IT, I MEAN, NO, I THINK, I THINK THAT'S, I MEAN, YOU'RE, YOU'RE RIGHT.
IT WAS REALLY, REALLY BAD IN THE SEVENTIES MM-HMM.
I MEAN, LET'S, THE REALITY IS IT WAS BAD.
SO IT WAS IN OUR STAFF MEETINGS FOR FIVE YEARS, I'VE PREDICT BEEN PREDICTING INFLATION WAS GONNA START, AND I STARTED FEELING REALLY FOOLISH, YOU KNOW, BECAUSE ALL THE MACRO INDICATORS TOLD YOU, YOU KNOW, IT SHOULD YEAH.
NEVER HAPPENED UNTIL, BUT YOU KNOW, NOW, AND YOU KNOW, MARK ZANDY ECONOMIST FROM ECONOMY.COM, AND HE'S, HE'S, HE USED TO COME DOWN HERE YEARS AGO, AND ONE OF HIS AT LAST SLIDES WOULD ALWAYS BE, YOU KNOW, FORECAST INFLATION'S GONNA GO UP.
AND IT WOULD NEVER GO UP FOR THE, THE SAME REASONS MR. MORGAN JUST MENTIONED EVERY YEAR.
AND THEN, SO THE LAST YEAR YEARS HERE, I REMEMBER HE STARTED, HIS PRESENTATION WITH INFLATION WILL NOT GO UP.
AND SO NOW WE'RE FINALLY SEEING THAT YES, INFLATION IS, IS GOING UP.
AND, YOU KNOW, IT IS CONCERNING AS MUCH AS IT'S NOT THE SEVENTIES, OUR POLICIES ARE DIFFERENT.
CERTAINLY THE FEDERAL RESERVE IS ACTING DIFFERENT TOWARDS THIS THAN THEY DID IN THE SEVENTIES.
THEY'RE BEING VERY, VERY CLEAR ABOUT WHAT THEY ARE ATTENDING TO DO.
UM, BUT THIS, THIS CERTAINLY DOES HAVE RAMIFICATIONS.
OH, IS THE INFLATION TIED TO GOVERNMENT SPENDING?
HOW IS IT? WELL, I CAN TELL YOU IN THEORY HOW IT'S SUPPOSED TO BE TIED, BUT, YOU KNOW, WE'VE HAD THIS CONVERSATION BEFORE.
THERE'S JUST SIMPLY A DISCONNECT.
UM, YOU KNOW, THERE'S JUST A DISCONNECT BETWEEN FEDERAL SPENDING AND ANYTHING.
UM, YOU KNOW, IT HAS APPEARED IN THE LAST FEW YEARS, UH, THAT, THAT THE, UH, FEDS COULD JUST SPEND WITHOUT, UM, WITH, WITHOUT ANY THE, I PUN.
AND FOR THE MOST PART, IT'S PROVED TO BE TRUE.
I MEAN, IF YOU LOOK AT WHAT THE FEDS HAVE DONE AND HOW MUCH DEBT THEY'VE TAKEN ON, UM, AND NOW LOOK AT HOW STRONG THE DOLLAR IS.
RIGHT? YOU WOULD THINK THAT IF WE ARE REALLY INCURRING SO MUCH DEBT, THAT IT'S, THAT IT'S, UH, THE STRICT THAT THE DOLLAR WOULD THROW DOWN, THEN WE WOULD SEE DECREASE IN THE DOLLAR.
SO, YOU KNOW, THERE'S A ECONOMIST THAT, THAT IS REWRITING TEXTBOOK ECON TO POLICY TEXTBOOKS BECAUSE OF, OF IT.
RIGHT? IT'S CLEARLY, WE DON'T UNDERSTAND HOW THIS WORKS BECAUSE WHAT WE, WHAT THEORY SAYS SHOULD HAPPEN AND HAS HAPPENED IN THE PAST IS NOT HAPPENING.
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SO IT'S VERY STRANGE IN THE GLOBAL ECONOMY.AND, YOU KNOW, IT'S NOT QUITE AS SIMPLE AS THAT.
UM, THERE'S REALLY OTHER RESERVE CURRENCIES SUCH AS THE EURO AND, AND COLLECTION OF CURRENCIES.
JUST PEOPLE THOUGHT THEY WOULD REALLY START USING THESE, BUT I THINK WE'RE ALL KIND OF IN THE SAME BOAT, AND OTHER COUNTRIES ARE DOING THE SAME THING.
AND YOU JUST DON'T REALLY HAVE AN ALTERNATE GOLD, PLATINUM DIAMONDS.
THE, WHAT'S YOUR ALTERNATE? UM, SO THE US AS BAD, BAD AS IT IS, IS STILL RELATIVELY GOOD.
UM, THE SCARY THING IS ONCE IT'S NOT, THEN WE'RE IN TROUBLE.
UM, SO I THINK THAT THE ONLY CAUTIONARY THING THERE IS HOW FAR YOU CAN, CAN YOU PUSH? SO WHAT ARE THE WARNING, A WARNING SIGNS THEN? WELL, INFLATION'S AN EARLY WARNING SIGN.
BUT I THINK WHAT IF, IF YOU START TO SEE THE DOLLAR WEAKEN QUICKLY MM-HMM.
AND, YOU KNOW, YOU DON'T WANNA HAVE A RUN ON THE BANK.
YOU DON'T WANNA HAVE THIS SLIPPERY SLOPE.
UM, SO RIGHT NOW THE STRENGTH OF THE CURRENCY REALLY IS INDICATIVE OF WHAT PEOPLE THINK.
RIGHT? SO OUR CURRENCY IS PRETTY STRONG OUT OF THE MAJOR CURRENCIES.
US DOLLARS LESS RISKY OUT OF THE YEN AND THE DUE MARKET IN, IN THE EURO AND WHATEVER ELSE IS OUT THERE.
AND THEN SUDDENLY ANOTHER CURRENCY IS, IS A SAFER INVESTMENT.
YOU LOOK AT WHAT HAPPENED WITH THE POUND RECENTLY, RIGHT? YES.
SUDDENLY YOU SEE THE POUND SLIPPING JUST BASED ON, ON POLICY, UH, INTENDED POLICY.
THEY REVERSE SOME OF THE POLICY TO, UM, BUT THAT WOULD BE INDICATIVE OF, BUT WE'RE NOT SEEING PEOPLE, AS YOU JUST POINT OUT, WE'RE NOT SEEING PEOPLE RUN AWAY FROM THE DOLLAR THEY'RE RUNNING TO IT.
AND THEY'RE RUNNING TOWARDS PRECIOUS METALS.
I MEAN, P METALS HAVE ALWAYS BEEN THERE FOR, FOR A WHILE, BUT THEY SEEM TO BE PRETTY STEADY.
SO, I, THIS, THIS IS CONFUSING, BUT ONE THING THAT'S PRETTY OBVIOUS THOUGH, IS AS INTEREST RATES GO UP, YOU KNOW, FOR ALL THESE YEARS OF LOW INTEREST, THE FEDERAL GOVERNMENT COULD BORROW MONEY AT SUPER LOW INTEREST RATES.
AND NOW THERE'S GONNA, IT'S GONNA TAKE, IT'S GONNA EAT THE FEDERAL BUDGET.
IT'S GONNA COST THEM A LOT MORE, CHECK A LOT MORE MONEY.
YOU KNOW, IT'S ALREADY, UM, YOU KNOW, IT'S THE FASTEST RISING PART OF FEDERAL SPENDING.
AND, AND WHAT YOU SEE IN THIS, WITH THAT HRSD PROJECT, UH, UM, TWO YEARS AGO, THE PROJECT'S ESTIMATED IT COST $19 MILLION.
THIS IS ONE, THE TWO TANKS UP BY TAB.
IT'S 34 MILLION, TWO YEARS LATER, 34 MILLION FOR ONE TANK.
THE FLUCTUATING PRICES, THEY'RE RUNNING THROUGH THE SAME PROBLEM THAT WE'RE RUNNING THROUGH.
BUT ON THE FLIP SIDE, YOU KNOW, WE STARTED BUILDING R B T WHEN IT WAS CHEAP AGAIN.
WE SAW A GLU IN, IN EMPLOYMENT, AND SO WE, WE WON THERE.
BUT, UM, YEAH, WITH PRICE INFLATION, AND WE, YOU KNOW, WE'RE GONNA SEE PRICES INCREASE FOR, I WOULD EX EXPECT FOR THE NEAR TERM UNTIL WE GET A HANDLE ON INFLATION.
AND, AND THAT'S REALLY UNCLEAR AS TO WHEN THAT, WELL, FOR THE, FOR THE YOUNG COUPLES, IT'S YOUNG PEOPLE WITH FAMILIES GO TO THE GROCERY STORE AND LOOK AT, LOOK AT THE INFLATION IN THE FOOD.
I MEAN, THAT REALLY, THAT REALLY HITS ABSOLUTELY.
AND THE, THE INCREASE IN MORTGAGE PRICES CERTAINLY YES.
IS, YOU KNOW, FOR, FOR PEOPLE TRYING TO GET INTO HOUSING, THAT'S A, THAT'S A PRETTY SIGNIFICANT PROBLEM.
I'LL TALK A LITTLE BIT MORE ABOUT IT, BUT ACCESS TO AFFORDABLE HOUSING IS REALLY CRIPPLED WHEN YOU SEE INTEREST RATES GO UP LIKE THIS BECAUSE YOU CAN'T PURCHASE HOUSING.
UM, YOU GET PRICED OUTTA THE MARKET, ESPECIALLY SINCE WE'VE HAD A HOT HOUSING MARKET AND THE RENTALS HAVE BEEN GOING UP PRECIPITOUSLY.
SO, SO THIS, HERE, WHAT THIS DOES IS REALLY THAT TURNS OF FOCUS FROM THE US TO HAMPTON ROADS.
HAMPTON ROADS IS THE GREEN LINE THERE, THE US IS THE BLACK LINE.
AND WHAT I'VE DONE HERE IS I'VE TAKEN US ALL THE WAY BACK TO WHEN WE STARTED THE GREAT RECESSION.
SO, UM, MONTHS IS ON THE BOTTOM, UH, FOR HAMPTON ROADS.
THAT TAKES US ALL THE WAY BACK TO 2007, UM, WHEN WE ENTERED TO GREAT RECESSION.
AND YOU CAN SEE JUST AT THE VERY DIFFERENT EXPERIENCE, THIS IS EMPLOYMENT.
SO ONCE YOU GOT BACK TO THE RED BAR, YOU GOT BACK TO A HUNDRED PERCENT EMPLOYMENT.
IT TOOK THE US AND, AND, UH, VIRGINIA, ROUGHLY SIX YEARS TO GET BACK THE JOBS THAT THEY HAD LOST.
THEN YOU CAN SEE THE, THE SIGNIFICANT HIT FROM COVID AGAIN.
UM, AND SO THE US AS I SAID, THE US JUST, UH, JUMPED BACK AND THEY HIT THEIR PRE COVID MARK.
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3% SHY OF HITTING THEIR CO, UM, PRE COVID MARK, UH, HAMPTON ROADS.WE LOST OVER A HUNDRED THOUSAND JOBS FROM COVID.
WE'VE GAINED ROUGHLY 83,000 BACK.
UM, YOU CAN SEE THE INITIAL JUMP AND, UH, BUT WE ARE LAGGING SIGNIFICANTLY AGAIN BEHIND THE US AND, UM, VIRGINIA WE'RE ROUGHLY 17,000, UM, CIVILIAN JOBS SHORT OF WHERE WE WERE PRE COVID.
WHY, WHY, WHY WE LAGGING? WHAT'S DIFFERENT? WELL, I CAN EXPLAIN A LITTLE BIT
UM, HERE'S JUST A, A MORE DETAILED, UH, THIS TAKES US BACK TO 2005, BUT YOU CAN SEE THE, THE, UM, THE SIGNIFICANT CHANGE IN THE, THE SHAPE OF HOW WE'RE GOING.
IN THE PAST COUPLE MONTHS, WE'VE SEEN, WE'VE HAD SOME POSITIVE NEWS, UH, WITH RESPECT TO, UM, GROWTH THERE.
UM, BUT TO, TO ANSWER YOUR QUESTION, WHAT'S DIFFERENT ABOUT HAMPTON ROADS COMPARED TO, TO THE NATION AND UH, VIRGINIA? UM, REALLY IT'S THE STRUCTURE OF THE INDUSTRIES THAT ARE COMING BACK.
UM, YOU'LL RECALL THAT ON THE US SLIDE, UM, LEISURE AND HOSPITALITY HAD SEEN A SIGNIFICANT, WAS STILL QUITE LOW COMPARED TO THEIR PRE-RECESSION NUMBER THREE.
AND HERE WE'RE, WE'RE SEEING GROWTH THERE.
SO IN SOME AREAS WE'RE DOING BETTER CONSTRUCTION, WE'RE JUST KILLING IT.
I MEAN, THE, THERE'S SO MUCH CONSTRUCTION GOING A 5.8 BILLION IN TRANSPORTATION PROJECTS MM-HMM.
SO WE'RE SEEING, WE'RE SEEING, UH, GROWTH IN CERTAIN INDUSTRIES, UM, THAT THE US ISN'T.
BUT IF YOU LOOK ON THE BOTTOM END THERE, WE HAVE REALLY BEEN HIT WITH MANUFACTURING MORE SO THAN THE, THE NATION, UM, LOCAL GOVERNMENT.
ONE OF THE, THE THINGS THAT HAS JUST HAPPENED WITH LOCAL GOVERNMENT IS THEY CAN'T HIRE ANYBODY.
UM, WE SIMPLY DON'T PAY PEOPLE ENOUGH IN GOVERNMENT.
SO WHAT THE LOCALITIES DO IS THEY ALL STEAL FROM EACH OTHER.
I MEAN, WE'RE TRYING TO HIRE AT THE PLANNING DISTRICT COMMISSION RIGHT NOW, AND ALL YOU DO IS, YOU KNOW, NOR STEALS FROM VIRGINIA BEACH AND YOUR COUNTY STEALS FROM JAMES CITY AND NEWPORT, BUT YOU KNOW, ALL WAY AROUND.
BUT YOU KNOW, YOU DON'T, YOU DON'T SEE YOUR RAIDERS, YOU DON'T SEE US STEALING FROM BUFFALO.
YOU DON'T SEE US STEALING FROM INDIANAPOLIS.
YOU DON'T SEE US STEALING FROM OTHER REGIONS.
WE LOSE TO OTHER REGIONS BECAUSE WE PAY SOLO.
BUT THEN EVERYBODY HERE DOES A MARKET STRUCTURE AND SAYS, YOU KNOW WHAT? IT LOOKS LIKE VIRGINIA'S PAYING, YOU KNOW, WAGES ON THE, THE SAME AS NEWPORT NEWS AND NORFOLK.
AND YOU'RE ALL PAYING WAGES THAT ARE MUCH LESS THAN PEOPLE.
I JUST HAD A FRIEND OF MINE IN, IN MICHIGAN WHO IS PERFECT CANDIDATE FOR A JOB THAT WE'RE OUR, YOU KNOW, WE HAVE OPEN, UM, BUT SHE WANTS 40,000 MORE THAN WE PAY DOWN HERE.
SO WE CAN'T COMPETE WITH OTHER REGIONS.
AND ONE OF THE THINGS THAT'S DIFFERENT HERE IS WE DON'T PAY AS WELL.
WHAT ABOUT HER, WHAT ABOUT THE COST OF LIVING WHERE SHE IS NOW VERSUS THE COST OF LIVING HERE? GRAND RAPIDS IS, IS SIMILAR TO WHAT IT IS HERE.
THAT'S WHAT I WAS GONNA ASK YOU.
WE USED TO HAVE THAT BENEFIT OF A LOW COST OF LIVING.
WE DON'T REALLY HAVE THAT LOW COST OF LIVING.
CERTAINLY IT'S LOWER THAN NEW YORK AND SAN FRANCISCO.
BUT FOR, YOU KNOW, WHEN YOU'RE COMPETING WITH COLUMBUS MM-HMM.
SO ONE OF THE THINGS THAT HURTS US HERE IS, IS PAY.
RIGHT? RIGHT NOW IN THE CONSTRUCTION INDUSTRY, WE'RE PAYING, WE'RE PAYING A LOT.
BECAUSE YOU GET, YOU HAVE TO BUILD THESE TRANSPORTATION PROJECTS.
SO THEY'RE PAYING, UM, THAT HURTS THE TRUCKING INDUSTRY SOMEWHAT.
BUT TRUCK DRIVERS ARE GETTING PAID A LOT MORE NOW TOO BECAUSE THEY COMPETE DIRECTLY WITH CONSTRUCTION.
SO ONE OF THE, ONE OF THE REASONS THAT WE'RE SUFFERING IS BECAUSE OF, UH, WE HAVE A, A SHRINKING LABOR FORCE.
THAT'S, THAT'S THE ORGANIC PROBLEM IS NOT YOUNG PEOPLE ARE LEAVING, HAVE THEIR ROADS, YOU GOING ELSEWHERE.
AND YOU'RE BETTER OFF GOING ELSEWHERE BECAUSE YOU'LL GET PAID MORE.
AND THERE, THERE THERE'S MORE OPPORTUNITY.
BUT WE'RE, WE'RE MISSING THAT BOAT BY HAVING A SHRINKING LABOR FORCE.
AND, AND WE DON'T HAVE THE, THE, UM, OR WE'RE NOT PAYING THE, THE MONEY THAT'S NEEDED TO KEEP PEOPLE HERE.
SO IT IS CERTAINLY HURTING US.
UM, CAUSE WHAT ARE THE REASONS WHY WE'RE NOT PAYING ENOUGH? WELL, BECAUSE IT COSTS A LIVING IS LESS BECAUSE THE TAXES ARE, ARE TOO LOW TO COVER THE COST.
I THINK IT'S, YOU KNOW, I, I DON'T KNOW THAT I HAVE A GOOD ANSWER.
I MEAN, I THINK IT'S REALLY INDUSTRY SPECIFIC.
CUZ AGAIN, CONSTRUCTION, INDUSTRY CONSTRUCTION, WE ARE PAYING, RIGHT? WE ARE PAYING AND WE'RE PAYING A PREMIUM.
ONE OF THE THINGS I TELL, YOU KNOW, OFFSHORE WIND WAS NERVOUS ABOUT COMING TO HAMPTON ROAD BECAUSE HOW MUCH IT COST TO GET, UH, WELDERS HERE.
OKAY, WELL ONE OF THE THINGS WE'VE PUSHED BACK ON THEM AND SAY, WHERE ELSE ARE YOU GONNA GET WELDERS FROM? WE HAVE THE BEST WELDERS HERE.
WE HAVE THE BEST WELDERS HERE IN
[00:25:01]
THE US BEST SOME OF THE BEST WELDERS IN THE WORLD.YOU KNOW, WE HAVE SOME OF THE BEST, UH, UM, PEOPLE IN THE MARKET BECAUSE WE'RE PAYING THEM SO MUCH.
BUT THAT'S NOT NECESSARILY TRUE FOR OTHER INDUSTRIES.
SO IT'S, YOU KNOW, IT'S, I WOULDN'T SAY SO MUCH, IT'S A CHICKEN AND AN EGG THING, BUT IT IS, YOU KNOW, IF YOU ARE PAYING BECAUSE YOU HAVE THE DEMAND, THEN, THEN YOU WILL GET THE WORKERS AND ALSO THE TYPE OF WORK WE HAVE HERE.
SO THE TOURIST ECONOMY ON AVERAGE IS DIFFERENT.
PAY LESS, DOESN'T PAY AS MUCH.
WE DON'T HAVE A TON OF HIGH PAID MANUFACTURING JOBS IN HAMPTON ROADS COMPARED TO MANY OTHER METROPOLITAN AREAS.
I MEAN, WE HAVE THE PORT AND WE JUST, THERE'S A LOT OF PASS THROUGH MANUFAC, YOU KNOW, THAT MANUFACTURING GETS DONE ELSEWHERE AND, AND GETS TRUCKED THROUGH HAMPTON ROADS ON ITS WAY TO THE PORCH.
SO WE DON'T HAVE, YOU KNOW, ONE OF THE THINGS THAT, THAT HAD UNFORTUNATELY HAS BEEN HAPPENED IN THE LAST, GEEZ, 20, 30 YEARS, IS IT IS AN UNDERINVESTMENT IN ECONOMIC DEVELOPMENT AT THE STATE LEVEL WHERE YOU, IT HAS BEEN, YES.
YOU HAVE NOT, YOU KNOW, THE, ONE OF THE THINGS THAT WE'VE HEARD IN, GEEZ, THE LAST DECADE IS YOU CAN'T SELL FROM AN EMPTY CART.
SO WE DON'T HAVE LAND PARCELS IN PLACE TO ATTRACT MANUFACTURERS SO THAT WE CAN HAVE SUBSTANTIAL MANUFACTURING HERE.
SO IT GETS DONE OUTSIDE THE REGION, AND IT GOES THROUGH THE PORT AND LEAVES ANTHONY ROAD PORT PORT'S DOING WELL, MANUFACTURING HERE HAS NOT BEEN REALLY STRONG BECAUSE WE HAVE NOT MADE THAT, YOU KNOW, A, A GOAL.
NOW WE'VE CHANGED THAT IN HAMPTON ROADS.
HAMPTON ROADS HAS LED THE STATE ON THIS BY SAYING, WE NEED TO MAKE THIS A PRIORITY.
WE'RE GONNA, WE'RE GONNA GET, UM, LOTS AND, AND MARKET READY SO THAT WE CAN HAVE, YOU KNOW, PEOPLE COMING TO THE REGION WITH LOTS TO PICK FROM.
BUT AT, YOU KNOW, LOSING OUT ON THAT FOR 20 YEARS HAS CERTAINLY BEEN COST.
BUT DOES, HOW MUCH DOES THE STATE ACTUALLY SUBSIDIZE SOME OF THESE COMPANIES COMING IN AND OFFER THEM INCENTIVES TO COME? WELL, WELL, THAT'S BEEN PRETTY LOW FOR A LONG TIME.
I MEAN, I THINK STATEWIDE, UM, ECONOMIC DEVELOPMENT HAS NOT BEEN A PRIORITY.
WHO NEEDS ECONOMIC DEVELOPMENT WHEN YOU'RE THE NUMBER ONE STATE FOR BUSINESS? WELL, YOU START LOOKING AT, WELL, WHETHER IT BE TO BE THE NUMBER ONE STATE FOR BUSINESS, IT MIGHT NOT ALWAYS BE A GOOD THING.
RIGHT? WHAT WE WANNA BE IS THE NUMBER ONE STATE FOR, UM, YOU KNOW, FOR QUALITY OF LIFE THAT SHOULD BE YOUR GOAL.
AND, AND, WELL, PART OF IT WAS PROBABLY FOR, SINCE WORLD WAR II, WE'VE BEEN THE NUMBER ONE MILITARY FOR DEFENSE SPENDING PER CAPITA, WHICH KIND OF MAKES IT EASY, YOU KNOW, IN TERMS OF THE ECONOMY, YOU KNOW, WOULD BE ONE PERSPECTIVE.
WELL, AND SO DIRECTLY 20% OF OUR ECONOMY IS RELATED TO DEFENSE.
AND IF YOU ADD THE INDIRECT AND INDUCED, YOU'RE LOOKING AT 40% OF THE REGION'S ECONOMY, RIGHT? SO HOW WE COME BACK FROM, OR HOW WE ENTER ANY RECESSION OR GROWTH PERIOD IS SO DEPENDENT ON FEDERAL GOVERNMENT, FEDERAL SPENDING, GOVERNMENT SPENDING.
UM, IT'S JUST A REALITY, RIGHT? MM-HMM.
IF YOU GO BACK TO 1969, WAY BACK, UM, FULLY ONE QUARTER OVER A QUARTER OF ALL EMPLOYMENT HERE WAS MILITARY PERSONNEL.
SO WE HAVE BEEN, OVER THE YEARS, BECOME LESS DEPENDENT ON THE FEDERAL GOVERNMENT.
WE'VE ALWAYS BEEN DEPENDENT THOUGH.
SO EVEN THOUGH WE'RE LESS DEPENDENT THAN WE WERE, YOU KNOW, GOING BACK 50 YEARS, UM, IT STILL IS A HUGE COMPONENT OF THE ECONOMY.
SO IF YOU SEE ROBUST GROWTH THAT HAPPENS ELSEWHERE, AND WE'RE NOT PART OF IT, IT'S EASY TO RECOGNIZE THE FEDERAL GOVERNMENTS TO BLAME.
BUT, YOU KNOW, WHEN WE FIRST WENT INTO THE, THE GREAT RECESSION TOO, YOU KNOW, JUST PRIOR TO THE GREAT RECESSION, 2006, EVERYBODY'S LIKE, LOOK AT LAS VEGAS.
EVERYBODY WHO'S NOT LAS VEGAS IS AN IDIOT, CUZ LAS VEGAS IS KILLING IT, AND THEY'RE DOING THE BEST ANYBODY'S EVER SEEN.
EVERYBODY'S LIKE, OH MY GOSH, THANK GOODNESS WE'RE NOT LAS VEGAS
RIGHT? SO IT KIND OF FLIPS DEPENDING ON WHAT YOU'RE COMPARATIVE COMPETITIVE ADVANTAGE IS.
OUR COMPETITIVE ADVANTAGE ALWAYS BEEN THE WATER, YOU KNOW, WE HAVE THE PORT, WE HAVE TOURISM, WE HAVE MILITARY, UM, BUT, YOU KNOW, YOU SEE THE EBB AND FLOW WITH SOME OF THESE OTHER REGIONS THAT VEGAS WAS JUST A VERY EASILY, YOU KNOW, IT WAS DISTINCT IN WHAT IT OFFERED.
UM, SEQUESTRATION WAS BIG LAG FOR US COMING BACK AFTER THE GREAT RECESSION FOR US, RIGHT? WE LOOKED AT, YOU KNOW, THAT WAS IN, IN 2011, WE'RE LOOKING AT FEDERAL SPENDING AND SUDDENLY, YOU KNOW, WE'RE, WE'RE SCARED OF SEEING HOW MUCH, HOW SPENDING'S GETTING OUTTA CONTROL.
AND SO, YOU KNOW, THE ANALOGY I USE IS THEY TOOK A GOOD SHOTGUN, THEY POINTED AT THEIR LEG AND SAID, IF WE CAN'T COME TO TERMS AND AGREE WITH THE LEFT AND THE RIGHT, THEN WE'RE GONNA SHOOT OUR LEG OFF.
AND OF ALL, UH, REGIONS TO GET HIT BY THAT, THAT HIT HAMPTON ROAD THE MOST, THERE
[00:30:01]
WOULD'VE BEEN A STRATEGIC WAY THAT WOULD, COULD'VE BEEN EFFECTIVE, THAT WOULD'VE REDUCED EXPENDITURES, SEQUESTRATION, WASN'T IT? MM-HMM.UH, BUT HERE YOU CAN SEE JUST THE, THE HOW, HOW THE, THE DIFFERENT, UH, INDUSTRIES HAVE FARED.
IF WE LOOK A LITTLE BIT FURTHER OUT, THIS IS THE 10 YEAR CHANGE.
SO YOU CAN SEE, AS MR. MORGAN WAS SAYING, HEALTHCARE WAS REALLY, REALLY DOING WELL FOR A LONG TIME.
ONE OF THE THINGS HAMPTON ROAD HAS DONE REALLY GOOD AT, UH, OVER THE PAST DECADE IS EXPAND THE SHOULDER SEASONS.
UM, YOU KNOW, REALLY WORKING TO SAY, HOW DO WE MAKE THIS, YOU KNOW, INSTEAD OF JUST A SUMMER DESTINATION, UH, LONGER DESTINATION, MORE OF A, YOU KNOW, YOU'RE SEEING PEOPLE COME HERE IN THE SPRING AND STAYING IN THE FALL, AND WE'RE TRYING TO DO DIFFERENT THINGS WITH HOW WE ATTRACT PEOPLE TO THE AREA.
UM, I WOULD SAY THAT, UH, TOURISM IS A VERY MATURE INDUSTRY IN HAMPTON ROADS, AND THEY'RE CERTAINLY TRYING TO REINVENT IT AS MUCH AS THEY CAN.
BUT IT'S NOT LIKE, YOU KNOW, WE'RE GONNA GET A DISNEY WORLD THAT'S SUDDENLY IN A PARK DOWN HERE OR SOMETHING.
WHO KNOWS? MAYBE IT COULD HAPPEN.
BUT WHEN I SAY MATURE INDUSTRY, I MEAN, YOU KNOW, THERE, WHAT WE HAVE, THE ATTRACTIONS WE HAVE ARE WELL ESTABLISHED.
I, I MEAN, THERE IS GROWTH, UM, BUT I, YOU KNOW, I WOULDN'T SAY ROOM FOR ROBUST GROWTH, RIGHT? IN A MATURE INDUSTRY.
SO IT'S INCREDIBLY IMPORTANT TO THE REGION, AND I WOULDN'T WANT TO UNDERSTATE THAT.
AND YOU WANT TO HANG ON, AND WHAT WE HAVE, YOU HAVE TO HANG ONTO IT.
AND YOU HAVE TO WORK TO HANG ONTO IT.
IT'S NOT LIKE YOU CAN JUST MAINTAIN AND KEEP IT, YOU'LL LOSE.
UM, BUT TO EXPECT ROBUST GROWTH OUT OF SOMETHING THAT, THAT, THAT'S THAT MATURE, IT'S NOT LIKE AN OFFSHORE WIND WHERE IT'S NEW, AN UPCOMING, AND YOU CAN SEE A MM-HMM.
UM, SO AGAIN, THIS JUST GIVES YOU OVER THE PAST 10 YEARS WHERE WE'VE SEEN, UM, PEOPLE COME IN AND WHERE YOU'VE SEEN PEOPLE LEAVE.
UM, MOVING ON TO THE LABOR FORCE, UM, THIS IS, THE LABOR FORCE IS KIND OF COMPLICATED.
SO THE BLACK LINE ON TOP THERE IS, THAT'S THE WHOLE LABOR FORCE.
LABOR FORCE INCLUDES THE PEOPLE WHO ARE EMPLOYED AND THE UNEMPLOYED, THE RED BAR THERE, THIS JUST TAKES US BACK TO JANUARY, UH, UH, 2020 JUST PRIOR TO, UH, COVID.
SO YOU CAN SEE WHAT HAPPENED TO THE LABOR FORCE.
YOU CAN SEE WHAT HAPPENED TO THE UNEMPLOYED AND EMPLOYED.
AND, YOU KNOW, PEOPLE TALK ABOUT THE UNEMPLOYMENT RATE.
HISTORICALLY, YOU WOULD SAY, THAT'S GREAT, WE'RE FINE.
UM, UNEMPLOYMENT RATE IS KIND OF A USELESS NUMBER.
UM, WHAT COMPRISES THE UNEMPLOYMENT RATE IS USEFUL.
AND SO IF WE LOOK AT THIS, UH, THE LABOR FORCE, IF WE COMPARE TO, UH, JANUARY, 2020, THE LABOR FORCE IS DOWN 5.1%.
THAT IS A SIGNIFICANT DECLINE IN THE LABOR FORCE.
UM, AND, YOU KNOW, THIS IS SOMETHING THAT WE WANT TO SEE.
WE CERTAINLY WANNA SEE INCREASING, BUT IT'S ESSENTIALLY, YOU KNOW, PART OF A SHRINKING LABOR FORCE.
IF YOU HAVE A SHRINKING LABOR FORCE, IT'S GONNA DRIVE DOWN YOUR UNEMPLOYMENT RATE.
EVEN IF YOU DO NOTHING ELSE, UM, THAT'S NOT NECESSARILY A GOOD THING.
SO WE'RE HIRING FROM A SMALLER POOL, UH, LABOR FORCE EMPLOYMENT IS DOWN 5.7%.
THE UNEMPLOYMENT, UH, IS UP 19.6%.
THAT'S JUST A NUMBER OF PEOPLE THAT ARE UNEMPLOYED.
UH, BUT WE HAVE A PROBLEM HERE WITH THE SHRINKING LABOR FORCE.
UH, PART OF THIS IS GONNA BE DEMOGRAPHICS.
YOU KNOW, WE TALK ABOUT THE GREAT RESIGNATION.
YOU'RE ALSO SEEING A LOT OF PEOPLE, YOU KNOW, RETIREES WHO LEFT THE WORKFORCE.
UM, YOU KNOW, WE TALKED ABOUT WHO IS LEAVING THE WORKFORCE AFTER COVID.
WHEN COVID HIT, YOU SAW A LOT OF FAMILIES HAVE ONE PERSON LEAVE THE WORKFORCE BECAUSE THEY, FOR CHILDCARE, YOU HAD NO OPTIONS.
BUT YOU ALSO SAW A LOT OF RETIRED PEOPLE LEAVE THE WORKFORCE, AND THEY ARE NOT COMING BACK.
UH, FAMILIES ARE COMING BACK SLOWLY.
BUT WE'VE SEEN THAT CONTRACTION IN THE LABOR FORCE.
AND IT'S NOT LIKE WE'RE GETTING AN INJECTION OF YOUNG PEOPLE INTO THE REGION THAT'S RIGHT.
TO START EXPANDING THIS, UM, LABOR FORCE.
HISTORICALLY, WHAT WOULD HAPPEN IS THE MILITARY WOULD HIRE MILITARY BRINGS FAMILIES IN WITH NEW PERSONNEL THAT BRINGS FAMILY AND PEOPLE IN HAMPTON ROADS.
AND, AND WE GENERATE WORKFORCE FROM THAT.
UM, BUT OVER THE PAST 20, 25 YEARS, WE'VE JUST SEEN A DECLINE IN THE NUMBER OF PEOPLE PERSONNEL IN THE MILITARY.
AND SO THAT HAS IMPACTED OUR POPULATION GROWTH, AND THAT'S ALSO IMPACTED OUR LABOR FORCE.
MR. G, HOW ABOUT, UH, IMMIGRATION? DOES THAT PLAY INTO ANY OF THIS WITH THE LABOR FORCE? WELL, ABSOLUTELY.
SO
ECONOMIC MIGRATION IS PEOPLE THAT ARE COMING TO THE REGION FOR JOB RELATED IN MIGRATION, OUT MIGRATION.
[00:35:01]
MIGRATION, WHICH HAS SLOWED SIGNIFICANTLY IN THE US.I MEAN, THEY HAVE FILLED A LOT OF JOBS.
AND WE'VE SEEN SOME OF THE CONTRACTION WE'VE SEEN IS BECAUSE WE'RE NOT SEEING INTERNATIONAL MIGRATION LIKE WE USED TO.
UM, SO FOR A PLACE LIKE HAMPTON ROADS, IMMIGRATION WOULD BE FANTASTIC BECAUSE IT RIGHT, IT ADDS TO THE LABOR FORCE, UH, EXPANDS THE LABOR FORCE, AND IT, IT REJUVENATES THAT GROWTH.
BUT WHICH LABOR FORCE ARE YOU ADDING TO THE, THE LOWER LEVEL OR BOTH? BOTH ENDS.
I MEAN, IT DEPENDS CLEARLY ON WHO'S COMING TO THE REGION, RIGHT? UM, SO IT WOULD BE DEPENDENT ON THAT.
BUT YOU HAVE A, YOU DON'T HAVE AS MANY HIGHLY EDUCATED PEOPLE COMING IN AS YOU DID FOR MUCH OF OUR LAST 30 OR 40 YEARS.
SO, DOCTORS AND SCIENTISTS, AND YEAH, AS FAR I WAS THINK LIKE THAT IS GOING DOWN.
AND ALSO THE ENTRY LEVEL WORKERS MORE WHAT YOU THINK OF AS IMMIGRATION.
YOU KNOW, ONE OF THE THINGS THAT'S INTERESTING, I MEAN, IF YOU LOOK AT, UH, THE, THE IMMIGRATION STATISTICS, I MEAN, A LOT OF THE, THE HIGHLY EDUCATED PEOPLE, THE REASON THEY COME, THEY, THAT THEY LEAVE THEIR COUNTRY TO COME TO DIFFERENT COUNTRIES.
QUALITY OF LIFE, RIGHT? QUALITY OF LIFE IS KEY.
THAT'S WHY, WHY ELSE WOULD THEY LEAVE? SO IF YOU DON'T HAVE A QUALITY OF LIFE BENEFIT, THEN YOU'RE NOT GONNA ATTRACT THEM IN THE FIRST PLACE.
AND IF YOU MAKE IT DIFFICULT TO GET INTO THIS COUNTRY, THEN MM-HMM.
UM, SO THERE, YEAH, THERE'S DIFFERENT LEVELS OF MIGRATION, BUT I THINK, UH, YOU KNOW, OVER THE PAST 10 YEARS, IT'S CERTAINLY BECOME MUCH MORE DIFFICULT, EVEN NOW TO ENTICE INTERNATIONAL MIGRANTS OVER THERE BECAUSE UNCERTAINTY WAS, WAS INCREASED WITH, UH, IMMIGRATION STATUS.
AND EVEN RIGHT NOW, I MEAN, PEOPLE THAT, THAT BRING IN THAT SPONSOR IMMIGRA PEOPLE, UH, ARE MIGRANT VISAS.
IT'S REALLY, REALLY DIFFICULT.
UM, AND TO MAINTAIN THAT, I MEAN, SOMETIMES WE'RE OUTTA WORK THREE TO SIX MI NINE MONTHS, UM, THAT LEVEL OF FRUSTRATION IS GONNA REDUCE THE NUMBER OF MIGRANT MIGRANTS THAT WE HAVE.
SO I IMAGINE THAT FEDERAL POLICY ON THIS IS GOING TO CHANGE BECAUSE WE'RE SEEING SUCH A CONTRACTION IN POPULATION GROWTH.
UM, PEOPLE ARE GONNA WANNA LOOK FOR OTHER AREAS TO EXPAND THE POPULATION, TO EXPAND GROWTH.
SO IT'S NOT GONNA HAPPEN NATURALLY.
UM, SO THIS WILL BE SOMETHING THAT COMES UP.
BUT FOR HAMPTON ROADS TO GET PEOPLE TO ECONOMIC MIGRANTS, SO TO SPEAK, TO COME IN TO THE REGION, YOU'RE GONNA HAVE TO, YOU KNOW, YOU HAVE TO OFFER A QUALITY OF LIFE THAT'S MM-HMM.
QUALITY OF LIFE IS INCREDIBLY IMPORTANT, ESPECIALLY TO THE YOUNGER GENERATION.
UM, YOU KNOW, SAT IN, HAVE BEEN SITTING IN ON A COUPLE OF INTERVIEWS FOR THE LAST, UH, SIX WEEKS, AND, YOU KNOW, A LOT OF THESE ARE YOUNG PEOPLE THAT ARE LOOKING FOR A JOB.
AND, AND EVERY SINGLE ONE OF THEM ASKS, YOU KNOW, WHAT ARE THE QUALITY ABOUT QUALITY OF LIFE? WHAT IS THERE TO DO IN THE REGION? WHAT DO YOU HAVE, YOU KNOW, WHAT ARE THEY LOOKING FOR? THE, YOU KNOW, IT, I MEAN, IT'S AN AMORPHOUS THING.
IT, IT'S, IT'S PUBLIC TRANSIT, IT'S BIKE PATHS, IT'S WALKING TRAILS.
IT, YOU KNOW, WHEN I THINK OF HAMPTON ROADS, I THINK THE QUALITY OF LIFE HERE IS FANTASTIC.
UM, I LOOK IN THE MIRROR AND I'M NOT 25 ANYMORE.
SO
BUT, YOU KNOW, THE THE FUNNY THING IS LIKE, I WANT BIKING TRAILS.
I WANT, YOU KNOW, THERE'S NO PLACE TO MOUNTAIN BIKE ON THE SOUTH SIDE, RIGHT? SO I LIVE IN CHESAPEAKE, AND SO I DO, I GOTTA GO, COME, COME TO YORK COUNTY, I GOTTA TRAILS.
YORK RIVER STATE PARK IS FANTASTIC, BUT THE, THE POINT IS, WATER PARK PEOPLE ARE LOOKING FOR, UM, ACTIVITIES AND, YOU KNOW, IT WORK IS JUST PART OF IT.
MAJOR LEAGUE SPORTS, LOTS OF PEOPLE FEEL LIKE THAT'S ONE OF HAMPTON ROADS REAL, WE'RE THE LARGEST METROPOLITAN AREA IN THE COUNTRY WITHOUT A MAJOR LEAGUE SPORTS TEAM.
WITH WHAT? WITHOUT A MAJOR LEAGUE SPORTS.
HOW MANY YEARS HAVE WE BEEN TALKING ABOUT A MAJOR? I, I CAN'T, THAT'S JUST ONE EXAMPLE.
BUT IT'S, IT'S SOMETHING TO THINK ABOUT, YOU KNOW, SPECIFICALLY, YOU KNOW, ESPECIALLY IN PLACES LIKE VIRGINIA WHERE WE'RE SO SEGMENTED, RIGHT? IT'S, IT'S HARD TO, TO BUILD THESE THINGS REGIONALLY.
IT'S MUCH MORE DIFFICULT THAN IN PLACES WHERE, LIKE SAN DIEGO IS SAN DIEGO, IT SAYS ONE PLACE.
SO THEY CAN START, THEY CAN MAKE THOSE INVESTMENTS.
BUT I THINK EVEN, UM, LIKE IF YOU TRAVEL INTERNATIONALLY, IF YOU LOOK AT THE INVESTMENTS AND THEY CALL PUBLIC FURNITURE, RIGHT? BIG PUBLIC PROJECTS.
I MEAN, YOU'RE TALKING ABOUT A DEVELOPING COUNTRY THAT HAS A LOT OF PROBLEMS, AND THERE ARE SO MUCH PUBLIC INVESTMENT IN PUBLIC INFRASTRUCTURE THAT WE JUST DON'T DO HERE.
UM, I'M FROM VANCOUVER, CANADA.
I JUST WENT HOME, SEE MY MOM, AND AGAIN, THERE I'M JUST LIKE, I'M BLOWN AWAY BY JUST HOW MUCH THEY INVEST IN PEOPLE TO SPEND
[00:40:01]
TIME AND BE OUTSIDE AND BE IN OPEN SPACE, AND USE THAT OPEN SPACE IN WAYS THAT JUST, YOU WOULD NEVER, NEVER EVEN CO, YOU KNOW, THINK ABOUT IN THIS REGION.AND I'M LIKE, THAT IS SOMETHING THAT PEOPLE ARE LOOKING FOR.
WELL, THAT'S THE REASON, AS IN VANCOUVER ALSO, 2.5 MILLION.
I DON'T KNOW THAT YOU WANT THAT, RIGHT? BUT THE THING IS, IT'S JUST, IT'S, IT'S, PEOPLE ARE LOOKING FOR THAT QUALITY LIFE.
AND SO I THINK, YOU KNOW, IT'S, IT'S TOUGH TO SPEND PUBLIC DOLLARS ON PUBLIC FURNITURE AND PUBLIC ART AND PUBLIC PLACES, BUT I THINK IT'S INCREASINGLY NECESSARY IF YOU WANNA SEE THE LABOR FORCE HERE MM-HMM.
WE DON'T HAVE THE SPECIFICS ON, ON THE SKILL LEVEL, BUT YOU CAN TELL BY THE INDUSTRY IS WHERE YOU'RE LOSING.
I SAID, I JUST TALKED BRIEFLY ABOUT THIS.
UM, YOU CAN KIND OF SEE HOW HAMPTON ROADS IS TRACKING THE, THE US AND COMMONWEALTH HERE.
UM, BUT ESSENTIALLY HOME PRICES HAVE, HAVE GONE UP SUBSTANTIALLY, UH, RECENTLY, YOU KNOW, FOR A WHILE THERE, WE DIDN'T EVER THINK WE MIGHT, UH, GET ABOVE 0% FOLLOWING THE HOUSING BOOM.
BUT WE CERTAINLY HAVE, UM, THIS IS, THE HOUSING MARKET IS CERTAINLY EXPECTED TO COOL, UH, WITH MORTGAGE RATES INCREASING, UH, IT'S A NUMBER ONE INCREASING COST FACTOR.
AND FOR A WHILE WE WERE HAVING DIFFICULT PEOPLE WERE HAVING DIFFICULTY ACCESSING MORTGAGES.
UM, BUT THE, THE HOME PRICE INDEX ALSO IS INDICATIVE OF AFFORDABILITY.
AND AFFORDABILITY IS BECOMING AN ISSUE.
UH, IT'S BEEN AN ISSUE IN HAMPTON ROADS FOR QUITE SOME TIME, BUT IT'S INCREASINGLY BECOMING AN ISSUE, UM, FOR WHERE PEOPLE CAN'T AFFORD TO KEEP TO LIVE CLOSE TO PLACES OF WORK.
SO HAMPTON ROADS IS A VERY MULTI NUCLEIC PACE.
WE DON'T HAVE ALL EMPLOYMENT CLUSTERS IN ONE SPOT.
SO HAVING, UH, PEOPLE BE ABLE TO AFFORD HOUSING NEXT TO AREAS OF EMPLOYMENT IS ALSO, BECOMES AN EMPLOYMENT ISSUE, BECOMES A LABOR FORCE ISSUE.
YOU KNOW, WHERE DO I HAVE TO LIVE IN ORDER TO, TO BE ABLE TO ATTEND? THERE'S A BIG DISCONNECT, UH, IN HAMPTON ROADS FOR, UM, AND, AND IT KIND OF GOES WITH YOUR SLIDES WHERE YOU GO INTO LIKE A CHESAPEAKE, YOU GO INTO A WHOLE BRAND NEW NEIGHBORHOOD MM-HMM.
WELL, HAVE YOU GOT, I MEAN, THAT'S, YOU GOTTA BE BRINGING IN SOMEBODY WITH SALARY TO BE ABLE TO PAY FOR THOSE.
AND, AND YET, YOU KNOW, IF WE LOOK AT THE GROWTH, I DON'T KNOW WHERE THOSE PEOPLE ARE COMING FROM.
AND NOW WE'VE GOT ALL THIS BUILDING OVER HERE IN PCOS, IN YORK COUNTY AND, AND THE HOMES AND STUFF, AND, UH, THE HOMES, YOU KNOW, I DON'T KNOW WHAT THE CURRENT HOME, BUT LIKE SMITH FARMS MM-HMM.
THERE WASN'T THE HOUSE UNDER FIVE 50 THAT WAS, UH, I DON'T THINK THEY'RE PROBABLY ANY UNDER 600,000 NOW AS THEY GO IN.
SO IF, YOU KNOW, IF WE'RE NOT BRINGING IN HIGH END EMPLOYMENT, WHAT ARE THESE PEOPLE WHO'S FOR WHO CAN AFFORD THESE HOMES? Y'ALL,
SO ESSENTIALLY, YOU KNOW, AND I DON'T MEAN THAT TONGUE IN CHEEK SO MUCH AS RIGHT.
ONE OF THE, THE, THE QUICKEST WAYS TO INCREASE ACCESS TO AFFORDABLE HOUSING HAS JUST BUILT HOUSES STRUGGLE DOWN.
BECAUSE THE REALITY IS, YOU KNOW, THERE'S A LOT OF AFFORDABLE HOUSING OUT THERE.
AND SO YOU NEED THEM TO MOVE OUT OF THE HOUSES THAT THEY'RE IN.
AND ONE OF THE WAYS YOU DO THAT IS BY, BY CREATING, BY BY STAGE UP, YOU STAGE UP.
BUT YOU, YOU, YOU CREATE PLACES THAT PEOPLE WANNA BE.
RIGHT? YOU CREATE THAT, THAT ENVIRONMENT SO THAT, YOU KNOW, SO WE'RE PULLING PEOPLE FROM OTHER COMMUNITIES.
WE'RE PULLING PEOPLE FROM THEIR EXISTING HOMES AND PUTTING THEM IN NEW HOMES, WHICH OPENS UP, YOU KNOW? MM-HMM.
AND ANY, ANY TIME YOU'RE BUILDING, YOU'RE INCREASING THE, THE SUPPLY.
AND WHEN YOU INCREASE THE SUPPLY, YOU KNOW, THAT'S A BENEFIT TO AFFORDABILITY IN SOME WAY.
UM, WE HAVE NOT SENT, SEEN A WHOLE LOT OF, UH, BUILDING PERMITS REGIONALLY.
I MEAN, I DON'T, I CAN'T REMEMBER THE LAST TIME WE'VE HIT OUR LONG TERM AVERAGE FOR BUILDING PERMITS ACROSS THE REGION.
AND THERE'S ALWAYS HOUSING STOCK THAT, THAT, YOU KNOW, GETS DEMOLISHED.
SO UNTIL WE SEE, YOU KNOW, IF, IF CHESS SPEAKS BUILDING A WHOLE BUNCH OF $630,000 HOME, GREAT.
AT LEAST THEY'RE ADDING TO THE HOUSING STOCK AND THAT, YOU KNOW, THAT'LL BENEFIT PEOPLE AS THEY MOVE ON.
WELL, THAT'S THE PRODUCT PROBLEM, THOUGH.
MOST BUILDERS SEEMS LIKE A BUILDING A $200,000 HOME, THEY'LL BUILDING A HALF MILLION DOLLAR HOMES.
CAUSE CAUSE THEY WANNA MAXIMIZE THE, THE AMOUNT OF MONEY THEY GET OUTTA THAT, UNDER THAT PLOT THEY'RE BUILDING THE HOME ON.
[00:45:01]
LARGE AND TALL AND THEY COST YOU HALF MILLION DOLLARS TO GET INTO IT.SO, BUILDING IT, IT IS NOT JUST BUILDING MORE HOUSES, BUT IT'S ACTUALLY BUILDING MORE HOUSES ON THE SMALLER FOOTPRINT.
BUT BILLY COSTA GOING UP ANYWAY, AREN'T THEY? YEAH.
SEE, GOING DOWN NOW, THIS IS A PROBLEM.
SO THAT'S WHY THEY NEED TO SPEND MORE, UH, GET MORE MONEY TO CHARGE, BECAUSE THE COST OF BUILDING HAS GONE UP ALSO.
IT HAS, BUT IT'S GOING DOWN NOW.
BUT IT'S NOT, IT IS NOT A ONE-TO-ONE RATIO THERE.
YOU KNOW, I'M MUCH MORE, AS AN ECONOMIST, I'M POOR OF FREE MARKET GUY.
SO, YOU KNOW, FOR ME TO, TO, TO TRY AND INCENTIVIZE BUILDERS TO BUILD SOMETHING THAT IS NOT GOOD FOR THEM, UM, I WOULD JUST LIKE TO SEE THEM BUILDING.
IT DOESN'T MATTER WHAT IT IS, AS LONG AS YOU ARE, YOU'RE INCREASING THE SUPPLY, THEN YOU'LL SEE.
I UNDERSTAND WHERE YOU'RE COMING FROM.
UM, BUT YOU CAN, I MEAN, AND I THINK THERE ARE CERTAINLY WAYS TO ADD AFFORDABLE HOUSING, UM, AND YOU CAN INCENTIVIZE IT.
AND I THINK THAT'S A FANTASTIC IDEA.
IF IT'S, IF YOU CAN GET THERE POLITICALLY.
I THINK SOMETIMES THAT THE THING IS THAT'S, THAT'S INTERESTING YOU TALK ABOUT, WELL, WE CAN GO BUILD AFFORDABLE HOUSING, UH, HOUSING THAT WE BUILT HERE WAS AFFORDABLE ALL OF A SUDDEN BECAUSE PEOPLE WANNA MOVE IN HERE THAT AFFORDABLE HOUSING BECAME UNAFFORDABLE.
I MEAN, I DON'T, UNLESS YOU BUILD A BUNCH TINY HOME SOMEWHERE, YOU, YOU'RE GONNA DRIVE.
IN FACT, THAT PROBABLY WOULD GO OUTTA SIGHT,
I MEAN, IT'S JUST, IT KIND OF HITS WHAT YOU WERE TALKING ABOUT.
THEY, YOU KNOW, PEOPLE WANT TO COME INTO PLACES WHERE THEY WANNA LIVE.
EVERYBODY'S FOR AFFORDABLE HOUSING SOMEWHERE ELSE.
UM, AND YOU KNOW, THERE, THERE ARE WAYS THAT YOU CAN DO IT, BUT IT, IT REALLY TAKES A CONCERTED APPROACH TO SAY, OKAY, WE'RE GONNA MAKE THIS INVESTMENT SO YOU CAN, YOU KNOW, WE CAN HAVE A WHOLE DISCUSSION ON HOW AFFORDABLE HOUSING GETS DONE AND, AND WHERE IT HAS WORKED, BUT THE REALITY IS, YOU KNOW, ADDING STOCK ALWAYS WORKS.
SO, UH, JUST A QUICK, UH, DISCUSSION ON, UH, SOME OF THE, UH, RETAIL SALES.
THIS IS, UH, YOU KNOW, WE'VE, WE'VE, I'VE BROUGHT THIS UP BEFORE.
RETAIL SALES TAX LOOKS GOOD, ANNUALIZED GROWTH RATE GOING ALL THE WAY BACK TO 2006.
UH, ONCE YOU ADJUST FOR INFLATION, IT'S 0.78%, WHICH IS NOT NEAR AS GOOD, I THINK.
UM, AND, AND I MENTIONED THIS I THINK, UH, A COUPLE YEARS AGO WHEN I WAS HERE.
I THINK WE'VE, WE'VE HIT THE APEX OF SALES TAX, ESPECIALLY INFLATION ADJUSTED.
WE'VE SAID, THE GROWTH THAT WE'VE SEEN THERE IS NOT SO MUCH REAL GROWTH, BUT IT'S REALLY TAPPED INTO, UM, INTERNET SALES.
SO WE WEREN'T TAXING A LOT OF INTERNET SALES.
THEN SUDDENLY, UM, COVID HIT TWO THINGS HAPPENED WITH COVID.
SUDDENLY YOU COULDN'T GO OUT AND, YOU KNOW, GET A HAIRCUT.
YOU COULDN'T GO OUT TO BUSH GUARDS, BUT PEOPLE WERE LIKE, WELL, I STILL CAN BUY STUFF.
SO THEY BOUGHT A LOT OF STUFF.
UM, AND THE STUFF THAT THEY WERE BUYING ON THE INTERNET WAS SUDDENLY ALL OF IT WAS BEING TAXED.
SO YOU SEE THAT HUGE JUMP THERE IN 2001.
THAT'S A COMBINATION OF PEOPLE SPENDING MORE MONEY ON GOOD SUDDENLY AND, UH, CONTRACTION AND SERVICES AND, UH, A SUPREME COURT DECISION INVOLVING SOUTH DAKOTA THAT THAT WENT THROUGH THAT ALLOWED US TO CAPTURE THE TAX BASE.
UM, BUT LOOKING HERE ON, OUT ON SALES TAX, UH, I DON'T THINK WE'RE GONNA SEE A WHOLE LOT OF GROWTH THERE.
WE REALLY NEED TO EXPAND TAXES TO SERVICES AS WELL.
WHAT WE NEED IN VIRGINIA, AND WE HAVE NEEDED FOR, FOR DECADES IS TAX MODERNIZATION.
TAX REFORM DOESN'T DO ANYTHING.
WE NEED TO MODERNIZE OUR TAX CODE SO THAT IT'S INSTINCT WITH WHAT WE ACTUALLY SPEND MONEY ON AND MAKE SURE IT'S FAIR AND EQUITABLE.
RIGHT NOW, IT'S NOT, YOU KNOW, IF YOU GO GET YOUR CUT TAX SERVICE, SERVICE INDUSTRY IS IN TAXED.
YOU'RE RIGHT ABOUT THE HAIRCUTS.
THERE WAS A, THERE WAS A STUDY THAT WAS DONE AT, I BELIEVE THOMAS JEFFERSON YEARS AGO THAT SAID, YOU KNOW, IF, IF WE WERE TO TAX SERVICES, UH, WE COULD REDUCE THE INTEREST RATE TO 1% OR THE TAX RATE TO 1%, RIGHT.
AND REMAIN REVENUE, SPREAD IT OUT, AND THEN, YEAH.
SO WHY PAY TAX ON A DIAPER AND NOT ON A HAIRCUT DOESN'T REALLY MAKE SENSE.
PEOPLE BEEN TALKING ABOUT IT FOR AS LONG AS WE'VE BEEN WORKING.
SOME STATES ARE, ARE STARTING TO GET THERE.
SO WE ARE SEEING TAX MODERNIZATION IS KEY.
I THINK WHAT WE KEEP SEEING IS WE KEEP SHRINKING THE TAX BASE BY OFFERING SOME PEOPLE, YOU KNOW, TAX BREAKS, OTHER PEOPLE'S TAX BREAKS.
SO THE RATES GO UP AND, UH, THE EQUITY DECREASES THERE.
UM, SO I SAID THAT FORECASTS ARE USELESS.
I JUST WANT TO TOUCH ON THIS REAL QUICK.
UM, THESE, THIS YOUR USELESS FORECAST.
THIS IS, UH, BLUE CHIP, UH, ECONOMIC INDICATORS.
THEY, THEY, UH, SURVEY SOME OF THE BEST ECONOMIC MINDS AROUND THE GLOBE AND THEY SAY, WHAT'S THE FORECAST GONNA LOOK LIKE? SO HERE YOU CAN SEE IN THE ORANGE BARS THAT ARE CONSENSUS FORECAST, THE BLACK BAR, THERE IS A LONG TERM AVERAGE FOR GROSS DOMESTIC PRODUCT.
[00:50:01]
ACTUALLY HAPPENED.SO YOU CAN SEE THOSE, THOSE TWO NEGATIVE, UM, THE LAST TWO.
BUT ESSENTIALLY WHAT THERE'S, WHAT THEY'RE SAYING IS, UH, GROWTH DOES NOT LOOK, YOU KNOW, UH, WHEN WE'RE, WHEN WE'RE TALKING ABOUT THE NEXT, UH, FOUR TO SIX QUARTERS MM-HMM.
THERE WILL BE AN INCREASE IN DEFENSE SPENDING.
UH, IT LOOKS LIKE, UM, YOU KNOW, THAT, THAT, THAT WASHINGTON MIGHT PUSH THIS THROUGH.
BUT THE REALITY IS ONCE YOU ADJUST IT FOR INFLATION, IT SUDDENLY DOESN'T LOOK THAT BIG.
UM, BUT AT LEAST WE'RE NOT SEEING IN, YOU KNOW, IN FORESEEABLE COUPLE YEARS OF CONTRACTION AND DEFENSE SPENDING.
SO, UH, HAMPTON ROADS, YOU KNOW, COULD BENEFIT FROM THAT.
UM, BUT THE REALITY IS, YOU KNOW, THE, THE NEXT FEW QUARTERS, UH, IT DOESN'T LOOK SO SHINY.
SO WE'LL SEE WHAT HAPPENS WITH EMPLOYMENT.
IF EMPLOYMENT STARTS DIPPING, THIS WAS PREVIOUSLY DISCUSSED AND MOVES AWAY FROM THE AVERAGE OF, YOU KNOW, 500,000 NEW JOBS EVERY MONTH, THEN YOU START SEEING THE AVERAGE OF 130,000, THEN WE'RE IN TROUBLE.
RIGHT? IF EMPLOYMENT SLIPS IT BACK INTO REGULAR TERRITORY AND EVERYTHING ELSE, WE SEE DISINVESTMENT BUSINESS, UM, WE'RE GONNA BE IN TROUBLE.
UM, I TALK ABOUT THE, THE FEDERAL DEBT HELD BY THE PUBLIC.
UM, JUST AS, AS A REMINDER, I MEAN, THIS COULD POTENTIALLY IN THE FUTURE, IT WILL LIKELY LEAD TO TROUBLE FOR HAMPTON ROADS BECAUSE WE'RE SPENDING SO MUCH MONEY.
AND IF YOU WANT TO CUT FEDERAL EXPENDITURES, UM, YOU KNOW, INTEREST RATES IS, IS GONNA REALLY BALLOON THE DEBT.
UH, IN ORDER TO MAKE CUTS, YOU'RE GONNA HAVE TO TALK DEFENSE BECAUSE IT'S OVER 50, 55% OF DISCRETIONARY EXPENDITURES.
YOU CANNOT FIX, UM, THE EXPENDITURE PROBLEM WITHOUT TALKING ABOUT DEFENSE.
AND WHEN YOU TALK ABOUT DEFENSE, IT'S GONNA HIT HAMPTON ROADS.
UH, THERE'S JUST NEVER BEEN CONGRESSIONAL APPETITE FOR A BRA.
A BRA WOULD MAKE SENSE, MIGHT ACTUALLY HELP HAMPTON ROADS, UM, BY CONSOLIDATING THINGS.
BUT, YOU KNOW, EVERY PRESIDENT, RIGHT SIDE, LEFT SIDE, THEY ALL WANT A BRA.
SO WE PROBABLY WON'T SEE A BRA.
BUT THIS LONG TERM, UH, WE NEED TO BE THINKING ABOUT THINGS OTHER THAN FENCE.
UM, I PUT THIS COMMUTING PATTERNS CHARTING CAUSE I LOVE IT.
WE CALL IT THE SPAGHETTI CHARTING OFFICE.
BUT THE POINT OF THIS IS, UH, IF YOU LOOK AT ALL THE METROPOLITAN AREAS IN THE US AND YOU ASK HOW MANY PEOPLE LEAVE THEIR JURISDICTION OF RESIDENTS AND WORK IN A DIFFERENT JURISDICTION THAN THEY RESIDE, HAMPTON ROADS RANKS THE THIRD HIGHEST, THE THIRD HIGHEST IN THE NATION FOR PEOPLE WHO LIVE IN ONE JURISDICTION AND, AND WORK IN ANOTHER.
AND A BIG PART OF THAT IS JUST HOW, UM, VIRGINIA IS DESIGNED.
WE STOPPED THE ANNEXATIONS OF, YOU KNOW, IN THE SIXTIES, ESSENTIALLY, WE STOPPED THEM IN THE EIGHTIES.
SO WE DIDN'T GROW NORMALLY, LIKE MOST REGIONS GROW, UH, WHERE WE HAVE ONE CENTRAL STRONG, UH, MUNICIPALITY.
AND SO WE'RE BOUNCING ALL OVER THE PLACE, WHICH MAKES, YOU KNOW, REGIONAL INTERACTIONS, UM, QUITE COMMON.
BUT ALSO, UM, REGIONAL COOPERATION IS IMPERATIVE.
UM, WHAT'S THE NUMBER ONE DISTRICT THERE? YEAH.
RICHMOND, DENVER, AND THEN HAMPTON ROADS.
SO I JUST WANNA TALK ABOUT SOME ONGOING REGIONAL INITIATIVES BECAUSE, YOU KNOW, KNOW HAMPTON ROAD'S PLANNING DISTRICT MISSION IS REGIONAL, UH, 5.8 BILLION IN REGIONAL TRANSP, UH, TRANSPORTATION INFRASTRUCTURE PROJECTS.
I THINK, UH, MY BOSS LIKES TO SAY THAT THIS IS THE SECOND MOST IN THE US RIGHT NOW.
I MEAN, THE CONSTRUCTION BENEFIT, THE BOONE THAT WE'VE GOT FROM THAT CAN'T BE UNDERSTATED IF IT WASN'T FOR THESE CONSTRUCTION PROJECTS BEING IN PLACE.
LIKE RIGHT NOW, HAMPTON ROADS WOULD BE IN A WORLD OF HURT RIGHT NOW MM-HMM.
SO WE'RE BENEFITING FROM THAT.
WE'RE REALLY TRYING TO TAP INTO FEDERAL RESOURCES AND, EXCUSE ME, GREG, BUT YOU HAVE TO THINK THAT, YOU KNOW, WHATEVER UNCERTAINTY IS IN THE NEXT YEAR OR TWO, THE FACT THAT ALL THOSE CONSTRUCTION PROJECTS ARE ONGOING, THAT THAT KIND OF PUTS A FLOOR ON YES.
THERE'S A, THERE'S A, I MEAN THAT THE FEDERAL GOVERNMENT SPENDING THAT WILL BE ONGOING COUPLED WITH THIS CONSTRUCTION SPENDING PUTS US IN A, IN A BETTER PLACE THAN WE OTHERWISE WOULD BE.
UM, SO CERTAINLY, YOU KNOW, WE'RE TALKING ABOUT THE, THE GAP FUNDING, UM, THE FUNDING FOR THE, THE I 64 GAP AND TRYING TO WORK THROUGH THAT.
UM, BUT YOU KNOW, I KNOW THAT REGIONALLY WE'RE WORKING REALLY HARD TO, TO LEVERAGE AS MUCH AS WE CAN TO GET FEDERAL AND STATE EXPENDITURES TO HELP PAY FOR THAT, UH, THE FIBER NETWORK.
UM, YOU KNOW, I THINK WE'RE, THIS IS A REALLY FANTASTIC THING FOR US BECAUSE WE'RE MOVING FORWARD RATHER QUICKLY WITH IT.
UH, THE PENINSULA IS NOW GAINING ACCESS TO THIS, YOU KNOW, THERE'S A SOUTH SIDE LOOP THAT'S AVAILABLE.
UM, THEY TALK ABOUT ALL THIS INTERNET
[00:55:01]
TRAFFIC THAT'S COMING IN.THE, THE TRICKY PART OF COURSE IS HOW WE LEVERAGE THIS INTO JOBS, JOBS AND MORE JOBS.
AND THAT'S SOMETHING THAT WE HAVE TO WORK ON, BUT AT LEAST WE'RE PUTTING IN TOGETHER THE INFRASTRUCTURE IN PLACE RIGHT NOW THAT WE CAN USE IT.
UH, I THINK YOU'RE ALL PRETTY FAMILIAR WITH THE BIRTHPLACE OF AMERICA TRAIL, THE BOAT TRAIL OR WHATEVER END UP THIS ENDS UP BEING NAMED.
UM, THIS IS, UH, AGAIN, SOMETHING I THINK THAT'S REGIONALLY BENEFICIAL.
THERE'S ALREADY A LOT OF IDEAS FLOATING OUT THERE ABOUT HOW WE CAN USE THIS TO, TO GET TOURIST DOLLARS TO, YOU KNOW, PEOPLE COMING IN THE REGION TO DO RACES AND STUFF LIKE THAT, BUT ALSO QUALITY OF LIFE COMPONENT.
BUT I THINK THIS HAS BEEN BENEFICIAL.
THE INTERESTING THING ABOUT IT, JUST FROM, FROM WHERE I SIT AT WORK, YOU KNOW, I'M AN ECONOMIST, UM, AND, AND LOOKING AT THIS FROM A PLANNING PERSPECTIVE, IS YOU'RE TAKING THIS, THIS ONE TRAIL, THIS BOAT TRAIL, BUT IT SPURS ON SO MANY OTHER DISCUSSIONS ABOUT TRAILS THAT TAKE PLACE AND DEVELOPS THIS, THIS NETWORK.
AND SO EVERYBODY'S LIKE, HOW DO WE TAP INTO THAT? HOW DO WE EXPAND ON THIS? WHAT ABOUT ME? WHAT CAN I GET? HOW DO I BUILD THIS TRAIL? AND SO I THINK FOR QUALITY OF LIFE PURPOSE PURPOSES, THIS IS FANTASTIC.
THE FACT THAT WE'RE DOING IT REGIONALLY CAN'T BE UNDERSTATED.
ECONOMIC SITES, UH, READINESS, THIS IS WHAT I WAS TALKING ABOUT.
YOU CAN'T SELL FROM AN EMPTY CART.
IF YOU DON'T HAVE LAND, THEN YOU CAN'T HAVE MANUFACTURING.
YOU CAN'T HAVE NEW PEOPLE COMING TO THE REGION AND LOCATING HERE IF WE DON'T HAVE PLACES FOR THEM TO SET UP SHOP.
UM, THIS HAS REALLY, AGAIN, HAMPTON ROADS REALLY LED ON THIS.
SO, UH, KUDOS TO THE REGION ON THAT, BUT I THINK THAT'S CERTAINLY CHANGING AS WE BRING UP MORE AND MORE SITES TO THE, THE CART SO THAT WE CAN START BRINGING PEOPLE INTO THE AREA DEVELOPMENT OF THE OFFSHORE WIND SUPPLY CHAIN.
UM, YOU KNOW, THIS WAS, THIS WAS A PRETTY CONCERTED PUSH FIVE, SIX YEARS AGO, AND WE'RE SEEING DIVIDENDS ALREADY PAYING OFF FOR THAT NOW.
UM, AS, AS HAMPTON ROADS IN VIRGINIA IS TRYING TO LEAD, UH, ON, ON THE EAST COAST IN TERMS OF MANUFACTURING DEVELOPMENT OF OFFSHORE WIND TURBINES.
AND WE'RE REALLY LOOKING AT EVERY OPPORTUNITY TO, TO BENEFIT FROM THAT, THAT WE CAN, UM, THE EV RFA REVENUE SHARING MODEL, UH, YOUR COUNTY HAS DONE, I THINK, A LOT TO, TO MOVE THIS ALONG.
BUT I THINK THAT'S AN EXCITING OPPORTUNITY.
I'M SURPRISED HOW MANY CONVERSATIONS COME UP IN THE WORLD OF ECONOMIC DEVELOPMENT THAT TALK ABOUT THIS, THIS MODEL FOR REVENUE SHARING AND GETTING EVERYBODY ON BOARD.
IT'S JUST ANOTHER TOOL IN THE TOOLBOX.
AND, YOU KNOW, A LOT OF OTHER, A LOT OF OTHER REGIONS DON'T NEED THIS BECAUSE THEY'RE NOT STRUCTURED LIKE WE, BUT WE DO NEED THIS, UH, MANY FEDERAL INITIATIVES GOING ON RIGHT NOW, BUT I'LL POINT OUT JEFF LABS.
UM, WE'RE LOOKING FOR THEM TO, TO GET THE NEXT SUPER COMPUTER THERE.
THEY MISSED OUT ON THE, UM, THE COLLIDER, UNFORTUNATELY, TO NEW YORK, BUT JEFF, JEFF LABS IS A HUGE BOOM TO THE REGION FOR JUST, UH, A NUMBER OF REASONS.
BUT IF WE CAN LAND THIS, I THINK THAT'S 2000 JOBS, UM, YOU KNOW, A LOT OF HIGH END JOBS, THEN, UH, GUESSING, YOU KNOW, SOME, THOSE PEOPLE ARE GONNA BE, UM, AND THEY'LL BE BUYING UP THESE, YOU KNOW, MORE EXPENSIVE, MORE EXPENSIVE HOMES.
YOU KNOW, AND, UM, WHICH ACTUALLY FEEDS INTO THE LAST ONE WE HAVE, WE PUT IN A DIFFERENT MODEL FOR REGIONAL ECONOMIC DEVELOPMENT.
UM, WHAT WE DO WITH ECONOMIC DEVELOPMENT IN THIS REGION REALLY NEEDS TO BE STRUCTURED FOR HAMPTON ROADS AND SPECIFICALLY FORTON ROADS.
UM, YOU KNOW, IF IF, IF I, BACK WHEN I WAS IN GRAD SCHOOL, YOU KNOW, I WOULD'VE SAID, YOU KNOW, ECONOMIC DEVELOPMENT, ANY EXPENDITURE ON ECONOMIC DEVELOPMENT IS A WASTE.
AND THE REASON I WOULD SAY THAT IS LIKE, IF NOBODY SPENT MONEY ON ECONOMIC DEVELOPMENT, THEN WE'D ALL BE IN THE SAME BOAT AS EVERYBODY'S SPENDING MONEY ON IT.
THE PROBLEM IS SOMEBODY DOES HIS, WE'RE THE ONLY ONE THAT'S NOT DOING IT.
IT'S LIKE, IT'S LIKE BEING THE ONLY RETAILER THAT'S NOT ADVERTISING.
WELL, THE YEAR, YOU KNOW, YOU LOSE AND YOU LOSE.
BUT THE, THE THING ABOUT HAMPTON ROADS IS IT'S ESPECIALLY IMPORTANT TO DO THIS REGIONALLY.
AND WE'VE JUST SUFFERED BECAUSE WE, WE HAVEN'T, BECAUSE NOBODY KNOWS WHO WE ARE.
AND SO YOU HAVE TO MAKE A NAME FOR THE REGION.
UH, YOU HAVE TO DO IT AT THE LOCAL LEVEL.
YOU HAVE TO DO AT THE REGIONAL LEVEL.
WE HAVE TO DO AT THE STATE LEVEL.
AND FOR AS LONG AS I'VE BEEN HERE, THE STATE, AS WE WERE TALKING ABOUT BEFORE, HAS JUST NOT SHOWN UP AND REGIONALLY, UH, WE JUST, WE DIDN'T HAVE A STRUCTURE IN PLACE TO DO THIS.
SO I WOULD LOVE TO SEE IN THREE TO FIVE YEARS WHERE WE CAN ACTUALLY DEVELOP, UH, GAIN SOME TRACTION ON THIS REGIONALLY AND START MARKETING THE REGION SO THAT ALL THE LOCALITIES CAN PULL IN TOGETHER AND GET BEHIND US.
BECAUSE I THINK THE DIVIDENDS THERE ARE SIGNIFICANT.
[01:00:01]
GOING BACK UP TO JEFFERSON LABS, I MEAN, IF, IF WE GET, YOU KNOW, IF, IF WE GET THE, UH, SUPERCOMPUTER, THE PEOPLE DON'T LIVE IN NEWPORT NEWS, WELL, SOME OF THEM DO, BUT THE WHOLE REGION BENEFIT.SO HOW DO WE, HOW DO WE SET UP A STRUCTURE WHERE EVERYBODY'S BENEFITING RATHER THAN DOING WHAT WE'VE BEEN DONE HISTORICALLY, AND WE'RE ALL COMPETING AGAINST EACH OTHER AND IT'S A RACE TO THE BOTTOM.
SO I'D LOVE TO SEE THAT REALLY DEVELOP.
BUT THOSE ARE JUST SOME OF THE, THE ONGOING REGIONAL INITIATIVES.
ANYTHING I'M MISSING THERE? UM, WELL, THOSE ARE SOME IMPORTANT POINTS HERE.
WHERE DOES NASA FIT IN? WHERE DOES THE SHIP FIT IN IN TERMS OF THE RULE ONE THREAT AND ALL THAT KIND OF STUFF? SURELY NASA SEEMS TO BE, THE LAYPERSON IS PRETTY DAMN IMPORTANT RELATIVE TO JEFF LABS.
THEY WERE STARTED CRANKING OUT BATTLESHIPS REAL SOON.
IF THERE'S ANYTHING TO DO WITH CCP, PLUMBERS TRYING PARK.
THE, UM, WELL, I DON'T KNOW HOW THEY RELATE TO THAT SO MUCH.
I MEAN, OF COURSE, NASA IS HUGELY IMPORTANT AND THEY'RE TRYING TO EXPAND.
WE'RE TRYING TO EXPAND THEIR PRESENCE ON THE AREA, EVEN AS IT RELATES TO THE EASTERN SHORE.
I MEAN, UH, NASA AND JEFF LABS, YOU KNOW, THEY'RE COMPETING FOR A LOT OF THE SAME MM-HMM.
AND WHICH IS, YOU KNOW, IF YOU LOOK AT SOME OF THE, UH, YEAH.
YOU GO THROUGH THE OCCUPATIONS IN HAMPTON ROADS AND YOU KNOW, A LOT OF THE ONES, IT'S LIKE, WELL, WE DON'T HAVE, YOU KNOW, WE DON'T HAVE A LOT OF PHDS IN THE AREA.
AND THEN SUDDENLY YOU LOOK AT LIKE, WOW, WE HAVE SOME OF THE HIGHEST CONCENTRATION OF, YOU KNOW, UH, ENGINEERS IN THE US.
IT'S ON THE PENCIL, NASA, IT'S RIGHT THERE.
AND IT'S, IT'S JEFF LABS AND IT'S NASA.
SO, UM, THAT'S REALLY IMPORTANT TO SHIPYARD.
COUPLE OF EXCITING THINGS GOING ON AT THE SHIPYARD.
ONE IS FEDERAL APPROVAL TO ACTUALLY FIX THE SHIPYARD BECAUSE IT'S BEEN IN SUCH DISREPAIR FOR DECADES MM-HMM.
AND SO, YOU KNOW, THE MONEY HAS BEEN, YOU TALKING ABOUT NORFOLK NAVAL SHIP.
UM, THE MONEY HAS BEEN SENT SPENT.
UM, BUT THAT ALSO GOES THROUGH TO, UM, NEWPORT NEWS SHIP BUILDING.
UM, THERE'S AN INVESTMENT THERE THAT IS IN PLACE AND WILL CONTINUE.
UM, SO WE'RE SEEING A LOT, A LOT HAPPENING RIGHT NOW WITH THE CONSTRUCTION OF SHIPS SHIPS.
UH, SO HONESTLY, SOME OF IT'S A LITTLE SURPRISING, UH, RIGHT.
THERE ARE DISCUSSIONS RIGHT NOW ABOUT LIMITING THE NUMBER OF CARRIERS AND MAKING SURE WE DON'T GET ANOTHER ONE, UM, BECAUSE THEY'RE SO EXPENSIVE AND THERE'S PUSHBACK AGAINST THAT.
SO WHEN I LOOK OUT YEARS FROM NOW, I DON'T KNOW THAT WE'RE GONNA SEE, YOU KNOW, WE MIGHT SEE ONE MORE CARRIER, BUT I, SUBMARINES IS THE FUTURE.
WE'RE NOT GONNA SEE, AND SUBMARINES, UH, A LOT OF THEM ARE BUILT UP.
WELL, THEY'RE BUILT ALL OVER NOW AND, AND GROTEN AND YES.
UM, SO THAT'S SOMETHING THAT WE'RE GONNA HAVE TO TRANSITION.
UM, AND, AND I DON'T KNOW EXACTLY HOW THAT'S DONE.
ONE OF THE THINGS THAT WE DO HAVE WORKING ENOUGH FOR US HERE, OF COURSE, IS THE NUCLEAR CAPABILITY.
SO IT'S NOT SOMETHING YOU CAN REPRODUCE EASILY ELSEWHERE.
UM, BUT A LOT OF THESE SHIPS TOO ARE SEEING FEWER AND FEWER SAILORS ON THEM.
SO AS LONG AS WE'RE STILL CONSTRUCTING THEM, WE'RE STILL BENEFITING, BUT WE'RE, WE'RE SEEING FEWER PERSONNEL ON THE SHIPS.
UM, AND THAT'S, THAT'S EXPECTED TO CONTINUE.
I THINK, YOU KNOW, EVEN BOTH PLANES AS WELL.
UM, YOU KNOW, A LOT OF DRONE TECHNOLOGY HAPPENING RIGHT HERE ON THE PENINSULA AS WELL, THAT'S CONTRIBUTING TO, TO FEWER PERSONNEL IN THE MILITARY DOING THE THINGS THAT, YOU KNOW, ON SHIPS.
IT JUST SEEMS TO ME THAT, YOU KNOW, IF YOU GIVE SOME THOUGHT TO THE THREAT, UH, AND SAY THE THREAT IS REAL THREAT, RIGHT.
TO ME, THAT WHETHER IT'S JEFF BLAS, WHETHER IT'S A SHIPYARD, WHETHER IT'S A NASA, UH, THAT THREAT WOULD DRIVE A LOT OF, OF, OF SPENDING.
MAKE THEM SURE THAT WE, UH, YOU KNOW, WE RETAIN THE ELITE STATUS THAT WE USED TO BE IN TERMS OF DEFENSE RELATED INDUSTRY.
I THINK THAT WHERE THAT MONEY IS GOING IS CERTAINLY CHANGING.
SO THE, YOU KNOW, PURCHASING A SHIP VERSUS, YOU KNOW, BEING ABLE TO FIGHT CRIME OR NOT CRIME, FIGHT WARS, UH, WHY CYBER TECHNOLOGY, UM, YOU KNOW, I THINK A LOT OF IT IS, IS SHIFTING AWAY FROM PLANES AND, AND BOATS AND IT'S REALLY BEING INVESTED ELSEWHERE.
AND IT'S NOT ENTIRELY CLEAR HOW MUCH OF THAT HAMPTON RESIDENTS UP WITH NO, I KNOW THAT, YOU KNOW, WE DO KNOW THAT WE KNEW, WE DO KNOW THERE'S A LOT WE DON'T KNOW, FOR EXAMPLE,
WE KNOW THERE'S, THEY'RE MAKING LIKE, YOU KNOW, NOT
BUT, YOU KNOW, THERE'S BEEN TIMES WHERE WE'VE PUSHED TO SEE, YOU KNOW, CONSTRUCTION YEAR,
[01:05:01]
UM, SOME OF OUR BASES HERE AND THE PUSHBACK HAS BEEN, WE'VE INVESTED A LOT IN THERE.IT'S LIKE, WE DIDN'T SEE ANYTHING AND THEY'RE LIKE, NO, YOU DIDN'T.
SO THEY ARE INVESTING, UH, I KNOW LITTLE CREEK HAS SEEN HUGE INVESTMENTS THERE.
MR. SHE, I KNOW YOU'RE, YOU'RE IN HER UP ALL THE TIME.
BUT, UH, SEE, I KNOW TELLING
BUT I THINK THE, WHERE, THE WAY WE'RE SPENDING IT IN THE FUTURE, ESPECIALLY IF YOU'RE LOOKING 20 YEARS OUT, THAT'S GOING TO CHANGE.
SO LET, LET'S BRING THAT INVESTMENT, UM, CONVERSATION DOWN TO THE LOCAL LEVEL.
CUZ WE TALK ABOUT GOING BACK WHAT YOU TALKED ABOUT EARLIER ABOUT INVESTMENT IN PUBLIC FURNITURE, THE TERM YOU USED TO TRY TO BRING PEOPLE WHO ARE LOOKING FOR THAT TYPE OF ENVIRONMENT INTO YOUR COMMUNITY.
HOW, HOW DOES, HOW DOES A BODY LIKE THIS LOOK AT PROJECTS LIKE THAT AND SAY IT'S GONNA COST X NUMBER OF DOLLARS TO BUILD THAT THING.
HOW DO WE, HOW DO, HOW DO WE ADD A VALUE TO THAT? HOW, HOW DO WE EVALUATE THAT THAT INVESTMENT IS A GOOD INVESTMENT OF CITIZENS TAX DOLLARS TO DO THAT THING? WHERE, WHERE, WHERE, WHAT, WHAT DRIVES THAT DECISION? OKAY.
YOU LOOK AT IT ON THE CERTIFICATE, THAT'S A GREAT IDEA, IS TO PUT A PARK UP.
BUT HOW DO YOU, HOW DO YOU MAKE SURE THAT INVESTMENT WAS, WAS A GOOD, BAD INVESTMENT? I'LL JUST BE BLUNT.
THERE'S NO WAY TO ANSWER THAT.
RIGHT? THEY'RE, THEY'RE, YOU KNOW, THAT, THAT IS AN INCREDIBLY DIFFICULT DECISION THAT I DON'T THINK YOU CAN LOOK TO DATA TO SAY, OKAY, IT'S CLEAR THAT, THAT THIS IS GONNA BE A GOOD RETURN ON OUR INVESTMENT.
I THINK YOU, YOU KNOW, THAT PART OF THAT IS, IS TAKING THE LEAP, TAKING THE JUMP.
UM, AND IT'S DIFFICULT BECAUSE, YOU KNOW, IT'S TAXPAYER MONEY.
YOU WANT TO BE GOOD STEWARDS OF IT.
UM, HOW DO YOU BE GOOD STEWARDS WHEN YOU DON'T HAVE SOUND FINANCIAL DATA OR REASONABLE DATA TO KNOW THAT YOU'RE DOING THE RIGHT THING? I HONESTLY, I CAN TELL YOU THAT IF YOU LISTEN TO AN ECONOMIST, THE ECONOMIST WILL SAY, DON'T SPEND IT.
UM, BECAUSE YOU CAN'T, YOU CAN'T PROVE THAT IT'S GOING TO GIVE YOU THE ROI THAT YOU WANT.
I'LL TELL YOU THIS, THE ROI THAT WE GET ON, ON ROAD CONSTRUCTION IS TINY.
WE HAVE NO PROBLEM SPENDING MONEY ON ROADS, UM, BECAUSE PEOPLE JUST ASSUME THAT ROADS, YOU KNOW, ARE NEEDED AND EVERYBODY WANTS IT.
BUT THE ROI THERE IS, IS REALLY KIND OF SMALL.
ONE OF THE THINGS I WOULD SAY IS THE PUBLIC FURNITURE IS NOT JUST TO DRAW PEOPLE IN HERE.
I THINK MORE IMPORTANTLY IN HAMPTON ROADS, IT'S TO KEEP THE PEOPLE WE HAVE HERE, HERE, BECAUSE, BECAUSE WE'RE LOSING THEM.
I THINK, I CAN'T OVERSTATE THAT ENOUGH.
IT'S NOT JUST TO DRAW PEOPLE IN, BUT I, I DO THINK, UM, YOU KNOW, IT, IT TAKES A COURAGEOUS MINDSET TO SAY, THIS IS WORTH THE INVESTMENT.
EVEN THOUGH I'M NOT SURE MM-HMM.
AND EVERYBODY SAID, EVERY ECONOMIST, EVERY FINANCIAL, THIS IS AN AWFUL IDEA.
YOU HAVE ALL THESE HOTELS ALREADY.
WHY DO YOU WANNA BUILD A NEW ONE? WELL, WE THINK WE NEED THIS NEW ONE.
SO THE LAST, I'LL TELL YOU NOW HOW THAT HOTEL HAS CHANGED THE NORTH END OF THE BEACH IS INCREDIBLE.
RIGHT? I DON'T, I, YOU KNOW, I SAW DR.
I SAW, UM, COMPANIES COME IN ONE AFTER THE OTHER SAY, IT'S NOT A GOOD INVESTMENT OF PUBLIC FUNDS, AND THEY'RE ALL WRONG.
RIGHT? AND SO I'M KIND OF ON THE SIDE WITH, YOU KNOW, MOSTLY THE ECONOMISTS.
LIKE, THAT'S NOT MY STRONG SUIT.
I CAN'T SEE WHERE YOU'RE GONNA GET THE BANK FOR THE BUCK.
BUT I DO KNOW THAT WHEN I'VE TRAVELED, AND I, I LOVE TO TRAVEL, UH, WHEN I HAVE TRAVELED, YOU CAN SEE THAT PLACES THAT HAVE INVESTED IN THIS, WHEN THE QUALITY OF LIFE INCREASES, WHICH IS RIGHT.
THE ULTIMATE GOAL, I THINK, FOR ANYBODY, INCREASE QUALITY WHEN YOU HAVE THAT YOU'VE WON, UM, WHETHER YOU'RE GONNA SEE THE, THE SPECIFIC ROI THAT, YOU KNOW, WHERE YOU KEEP TABS, HOW YOU MEASURE IT.
I DON'T KNOW HOW YOU MEASURE THAT.
UM, I REALLY DON'T KNOW HOW YOU DO IT.
BUT, YOU KNOW, IF YOU TRAVEL, YOU KIND, KIND OF TOUCHED UPON A LITTLE BIT WHERE YOU SAY, IF AS QUALITY OF LIFE INCREASES, YOU SEE THESE, THESE BENEFITS, NOT NECESSARILY A DOLLAR RETURN ON INVESTMENT.
YOU'RE NOT NECESSARILY LOOKING FOR A 1.5, ONE AND A HALF, UM, TIMES RATE, RETURN RATE ON WHAT, WHAT YOU SPENT.
BUT THERE SHOULD BE DATA OUT THERE THAT SAYS, HEY, THAT PE PLACES THAT HAVE IMPLEMENTED THESE IMPROVEMENTS, HAVE SEEN THESE BENEFITS.
HOW DO THAT? I DON'T KNOW HOW TO GO FIND THAT DAY.
WELL, AND, AND THE THING IS TRYING TO QUANTIFY OR, OR THINKING THAT SOMEBODY
[01:10:01]
CAN QUANTIFY IT, I THINK YOU DO YOURSELF A DISSERVICE WHEN YOU THINK YOU CAN QUANTIFY THAT BECAUSE IT'S SO DIFFICULT.SO YOU BUILD A BIKE PATH AND YOU MAKE A WALKABLE SPACE.
HOW DO YOU QUANTIFY THE VALUE AND THE RETURN THAT YOU HAVE INVESTED IN THAT, IN, IN ANY WAY? I THINK THAT THE REALITY IS IT'S IMPOSSIBLE.
BECAUSE IF I TAKE, IF I TAKE MY MODELS AND I TAKE MY NUMBERS AND I LOOK AT THE INCREASE IN PROPERTY VALUE AND THE INCREASE IN WEALTH AND THE INCRE, IT'S STILL PROBABLY NOT GONNA MATCH WHAT YOU'VE HAD TO INVEST.
BECAUSE I CAN'T CAPTURE OTHER ASPECTS OF QUALITY OF LIFE THAT ARE SO IMPORTANT.
AND THEN IT ALL, ALL, YOU KNOW, MR. MORGANS WEAR THIS, IT'S ALL IN THE ASSUMPTIONS.
THE ASSUMPTIONS CAN MAKE THIS THING GO WONKY ALL OVER THE PLACE SO THAT IT BECOMES ALMOST A USELESS ENDEAVOR TO TRY AND QUANTIFY IT.
UM, SO I, I THINK THE ANSWER IS IT'S REALLY DIFFICULT, IF NOT IMPOSSIBLE TO KNOW THAT YOU'RE GONNA BE DOING THE RIGHT THING.
AND, YOU KNOW, I'LL GO BACK TO JEFFERSON LABS.
UM, JEFFERSON LABS WAS AN INITIATIVE BY THE CITY OF NEWPORT NEWS WHERE THEY TOOK THE LAND, THEY BOUGHT THE LAND, THEY PURCHASED THE LAND, AND THEY GAVE IT TO THE, THE FEDERAL GOVERNMENT.
AND EVERYBODY LOOKING BACK NOW, WELL THAT WAS, YOU KNOW, GENIUS, YOU KNOW, GOOD IDEA.
I, I CAN'T IMAGINE THE SUPPORT AT THE TABLE, THE GROUP OF YOU ALL SAYING LIKE, WE'RE GONNA BUY THIS WITH PUBLIC MONEY AND WE'RE GONNA GIVE IT TO THE FEDERAL GOVERNMENT.
OF COURSE, IN THAT BOUGHT IT FROM ONE FEDERAL AGENCY AND GAVE IT TO ANOTHER.
SO, BUT, BUT YEARS LATER, IT LOOKS LIKE A GENIUS MOVE THAT'S PAID INCREDIBLE DIVIDENDS THAT NOW YOU COULD QUANTIFY.
BUT AT THE TIME THERE WOULD'VE BEEN NO WAY TO DETERMINE IS THIS THE RIGHT DECISION OR IS IT NOT? IT'S A COURAGEOUS MOVE AND IT PAID OFF.
IT'S, IT'S THAT, THAT WAS WHAT I WAS JUST GONNA SAY.
IT'S SOMETHING THAT PLANNING FOR THE FUTURE, LOOKING FOR AND WONDERING WHAT CAN BE, I THINK THE BEST ANALOGY AROUND HERE, IT'S PROBABLY THE DECISION TO DO RIVERWALK.
UH, YOU KNOW, AND YOU KNOW, SOME OF YOU WERE HERE AND ALL THAT WENT INTO THAT.
UM, YOU COULD HAVE ARGUED ALL KINDS OF THINGS AND THE COUNTY SPENDS SOMETHING LIKE $3 MILLION A YEAR IN VARIOUS DEBT SERVICE AND SPECIAL MAINTENANCE AND OTHER THINGS ABOUT THAT ONE.
AND SO IF YOU WERE, YOU KNOW, WHAT'S THAT WORTH? YOU KNOW, IF YOU WERE TRYING TO QUANTIFY IT, THAT'S KIND OF YOUR QUESTION.
AND PROBABLY ALL SAY, WELL, THAT CLEARLY WORKED OUT AND WAS WORTH IT, BUT HOW DO YOU SEE THAT ON THE FRONT END? YOU KNOW, THAT'S, AND THAT'S PART, THAT'S PART OF THE VISION.
ONE PART OF THE VISION IS THIS WOULD BE A GREAT THING.
THE OTHER PART OF THE VISION IS, WELL, HOW WILL IT PAY OFF DOWN THE ROAD? AND THAT INSIGHT IS WHAT WE STRUGGLE WITH A LOT OF TIME.
ONE, WHY I ASK YOU A LOT OF QUESTIONS, LIKE, WELL, YOU WANNA SPEND THE MONEY? WHAT'S, WHAT'S THAT GONNA GIVE US 10 YEARS, 15 YEARS DOWN THE ROAD? I KNOW IT'S A HARD QUESTION TO ASK.
AND SO I'M ASKING ANYBODY WHO COMES AROUND BASED ON EXPERIENCE, WHAT CAN YOU SHARE? SO, AND I THINK WHAT WHAT TYPICALLY HAPPENS HERE IN THIS REGION IS THE, THE DESIRE THAT'S THERE TO DO SOMETHING.
UM, BUT IT'S DONE IN SMALL PIECES, VERY IT ON SCALE.
AND, AND SO YOU DON'T, LIKE, THAT'S WHY I REFERRED TO, TO PANAMA OF ALL PLACES.
I DON'T KNOW IF ANYBODY HAVE EVER RID PANAMA P BEEN OF
NO, I WAS THERE WHEN IT WAS BUILT.
SOMEBODY AFTER HE LEFT IT CERTAINLY TOOK THAT.
BUT THEY HAVE CAUSEWAYS AND VIRAY, YOU KNOW, AND I'M JUST LIKE, EARTH, IT TAKES, YOU KNOW, IN ORDER, IF, IF YOU DO IT SMALL, IT'S GONNA BE SMALL.
UH, TO DO IT BIG AND IN PLACE LIKE HAMPTON ROADS, I THINK WHAT'S ESPECIALLY DIFFICULT IS TO DO IT TOGETHER IS INCREDIBLY DIFFICULT.
UM, BUT THE DIVIDENDS THAT IT PAYS, AND I GO BACK TO THIS, UM, THIS, RIGHT? UM, I LIVE IN A CITY THAT I HARDLY EVER GO OUT TO EAT IN A RESTAURANT THERE, BECAUSE I GO OUT IN ALL THE SURROUNDING CITIES TO EAT IN RESTAURANTS THERE.
CAUSE THAT'S WHERE MY WIFE WANTS TO GO.
SO, YOU KNOW, THAT'S WHAT WE DO.
UM, YOU KNOW, ONE, ONE LOCALITY BENEFITS FROM THE OTHER, YOU KNOW, AND, AND VICE VERSA.
SO THE MORE THAT WE COULD DO, YOU KNOW, IF I COULD JUST, ONE OF THE THINGS THAT I WOULD LOVE TO SEE, WE SPENDING ALL THIS MONEY ON THE H B T, CAN WE MAKE IT LOOK GOOD? LIKE REALLY CAN, YOU KNOW, CAN, CAN YOU ACTUALLY SPEND SOME MONEY TO LIKE THESE THINGS UP AND MAKE IT BEAUTIFUL? AND SO WHEN YOU COME UP TO IT THAT YOU SEE SOMETHING THAT'S, THAT, THAT'S ATTRACTIVE, PROBABLY ANOTHER 1% YOU COULD DO IT, YOU KNOW,
AND HISTORICALLY WE'VE ALWAYS SAID, NO, IT'S NOT.
UM, BUT I THINK, YOU KNOW, WITH, WITH THE VISION AND SOME OF THESE OTHER,
[01:15:01]
UH, REGIONS AROUND THE WORLD, THEY'VE CERTAINLY MADE THE INVESTMENTS TO SAY, YOU KNOW, WE'RE GOING TO DO THIS AND WE'RE GONNA MAKE THE PRIORITY.AND RIGHT NOW, UM, ONE OF THE FUNNY THINGS THAT, THAT, YOU KNOW, WE DID A SURVEY WHILE BACK AND IT'S LIKE, WHAT DO MILLENNIALS WANT? THEY WANT WALKABLE COMMUNITIES.
THEY WANT GROCERY STORES, THEY WANT BIKE TRAILS.
AND THEN EVERYBODY'S SITTING AROUND THE BOARDROOM.
IT'S LIKE, THAT'S WHAT WE WANT TOO.
YOU KNOW, THE RETIRED COMMUNITY WANTS THE SAME THING IS MILLENNIALS WANT.
AND I THINK EVERYBODY JUST WANTS, YOU KNOW, THEY WANT PLACES TO, TO, TO BE IN A LIVABLE PLACE AND, AND LIABLE.
YOUR OTHER EXAMPLES THOUGH, MOST OF THOSE OTHER MUNICIPALITIES ARE ONE HUGE MUNICIPALITY UNDER ONE LEADERSHIP AS OPPOSED TO HALF THE ROAD, WHICH IS VERY, EVERYTHING'S VERY DIVERSE.
RIGHT? EVERYTHING, IT'S EASY TO MAKE EASIER FOR THOSE MUNICIPALITIES, MAKE THOSE BIG DECISIONS BECAUSE IT'S ONE DECISION.
THINK ABOUT JUST USING THE SPORTS STADIUM EXAMPLE.
THE REASON WE'VE NEVER BUILT A LARGE ARENA FOR THAT COULD BE MAJOR LEAGUE SCALE, IS HOW WOULD YOU POSSIBLY GET EVERYBODY TO AGREE TO PAY FOR IT WHEN IT WAS ONLY GONNA GO WELL, THAT'S RIGHT.
WE GOT A MINOR LEAGUE, WE HAVE A HOCKEY TEA.
I MEAN, WOULD IT'S BEEN TALKS FOR YEARS? WOULD THE PENINSULA BE OKAY WITH, YOU KNOW, PAYING TO HAVE A MAJOR LEAGUE SPORTS FACILITY IN NORFOLK OR VIRGINIA BEACH OR VICE VERSA? MAYBE THAT'S SOMETHING THAT THE SHOULD LOOK AT.
BUT THAT, THAT GOES BACK TO THE QUESTION, IF WE SPEND 2 MILLION TO HELP OUT WITH THAT, HOW, HOW DOES THAT MAKE YOUR COUNTY BETTER PLAY? THAT GOES RIGHT BACK TO THE SAME QUESTION, RIGHT.
AND ALL OF THAT, RIGHT? YOU'VE HEARD WHAT I SAID? MM-HMM.
WELL, I THINK THAT MIGHT BE SOMETHING TO, TO EXPLORE.
SO THE BOAT TRAILS A SMALL EXAMPLE, YOU KNOW, THAT'S 125 MILLION PROJECT.
A LOT OF IT OVER TIME WILL BE GRANTS AND OTHER THINGS, BUT SIX LOCALITIES ON THE PENINSULA ARE ALL, THEY'RE ALL, YOU KNOW, HAVE THE VISION AND IT'S GONNA TAKE 20 YEARS.
YOU KNOW, I THINK EVERYBODY'S LOOKING FOR, HOW DO I DO THIS FOR ME NOW TO SEE IF, YOU KNOW, AN IMMEDIATE INCREASE? AND IF YOU LOOK AT SOMETHING LIKE, UM, THE RESEARCH TRIANGLE OR SILICON VALLEY, LIKE THESE THINGS WERE STARTED SO LONG AGO, THE INVESTMENT WAS SAVE SO LONG AGO.
GENERATIONAL, GENERATIONAL VISION, GENERATIONAL VISION, AND THE DIVIDENDS PAID OUT TREMENDOUSLY LATER ON.
AND I, YOU KNOW, I THINK, YOU KNOW, THERE'S THAT SAYING THAT SOCIETY BENEFITS FROM PEOPLE WHO PLANT TREES THAT THEY'LL NEVER SEE.
RIGHT? I THINK THAT MENTALITY COUPLED WITH, YOU KNOW, THE FACT THAT WE'RE NOT ONE BIG REGION WHERE, OR A COLLECTION OF SMALLER LOCALITIES, THAT THAT COMPRISE A BIG REGION.
IT MAKES IT ESPECIALLY DIFFICULT BECAUSE THIS, THESE ARE LONG-TERM INVESTMENTS AND WE'RE CLEARLY NOT JUST ONE PLACE.
I WISH I HAD A BETTER ANSWER FOR YOU.
A SIMPLE ANSWER I DON'T IS HARD.
YOU, YOU FALL IN, TO ME, YOU FALL INTO THE MENTAL TRAP HERE THAT I, YOU CAN, I'M GONNA SAY YOU ARE, BUT YOU'RE FOLLOWING THE MENTAL TRAP IS THAT YOU GOTTA COUNT NUMBERS FOR EVERYTHING YOU DO.
WHAT WE SAW IS, AND IT'S NOT JUST THIS BOARD, BUT CONTINUATIONS OF THE BOARD, OF THE ENVIRONMENT THAT WE HAVE IN THIS COUNTY.
THERE WAS SOME STRUCTURAL ISSUES SUCH AS, UH, YOU KNOW, GEOGRAPHIC ISSUES ABOUT HOW IT'S SPLIT AND LAID OUT AND THE FEDERAL, FEDERAL INVOLVEMENT.
BUT THIS, UM, THIS GOVERNMENT AND THIS COMMUNITY HAS SAID, I CAN VERY EASILY SAY THIS IS TO BE A BEDROOM COMMUNITY.
WE DON'T WANT THE HUGE INDUSTRIES IN YOUR COUNTY.
NOW WE'VE CARVED OUT BITS AND PIECES HALFHEARTEDLY TO ADDRESS, BUT WE ARE A BEDROOM COMMUNITY.
WE GOT, WE'RE A WEALTHY COMMUNITY BECAUSE OF, OF THE MEDIUM COST OF THE HOUSING AND INCOME HERE.
WE GO OVER AND SPEND OUR MONEY OVER IN NEWPORT NEWS WHERE, BECAUSE WE HAVE THE DISPOSABLE INCOME HERE.
BUT THAT'S HAPPENS OVER, OVER TIME FOR US TO BE INVOLVED IN THE OTHER COMMUNITIES AND HOW GOVERNMENTS HAVE SUPPORTED AND DONE AND REFLECT WHAT THE PEOPLE WANT YOU.
I, EVERY, I'M ALWAYS, I'VE BEEN ALL OVER THE UNITED STATES AND A LOT OF PARTS OF THE WORLD, EVERY PLACE I'VE BEEN WHERE THEY'VE INVESTED IN THINGS LIKE SIDEWALKS, RUNNING TRAILS, UH, COMMUNITY ACTIVITIES, EVERY ONE OF THOSE COMMUNITIES GROW PLACES WHERE THEY DON'T DO THAT.
THEY SHRIVEL UP AND THEY BECOME A PLACE WHERE PEOPLE DON'T WANNA LIVE, OR THEY BECOME AN INDUSTRY OR INDUSTRY FOCUS WHERE YOU END UP WITH OTHER LATER PROBLEMS WHEN THE INDUSTRY'S COLLAPSE.
SO, UH, WHAT WE DO HERE, I THINK AT HAMPTON ROADS IS
[01:20:01]
WE KIND OF BALANCE OUT EACH OTHER IN TERMS OF WHAT WE WANT OUR COMMUNITIES LOOK LIKE.VIRGINIA BEACH HAS A PRIORITY THAT'S WAY DIFFERENT THAN US IN TERMS OF EMPLOYMENT, SP UH, SPENDING ON IN SALARIES AND STUFF LIKE THAT.
UH, QUALITY OF LIFE HERE IN YORK COUNTY.
WE WANT A FAMILY ORIENTED COMMUNITY.
WE WANT HIGH GOOD EDUCATION, WE WANT LOW CRIME, AND WE WANT A HIGH QUALITY OF LIFE.
WELL, IT COMES, YOU KNOW, WE'VE GOTTA BA WE BALANCE IT OUT OVER THE YEARS WAS WHAT WE'VE DONE.
SO, SO WHEN I COULD SIT HERE AND WORK ABOUT NUMBERS, YOU KNOW, LIKE, OKAY, HOW DO YOU QUANTIFY THIS? HOW DO YOU QUANTIFY THAT? MY EXPERIENCE HAS BEEN, IF SOMEBODY WANTS TO MAKE A CHALLENGE AND TRY IT, OKAY, LET'S GO LEARN OFF THEIR EXPERIENCES.
LET'S GO SEE WHAT SOME OTHER COMMUNITY DID ON SOME TRAIL.
YOU KNOW, THE, THE WINE TRAIL OR THE COUNTRY MUSIC TRAIL OR WHATEVER.
OKAY, LET'S TAKE THE BEST PARTS OF THAT AND TRY TO APPLY IT UNIQUELY TO OUR ENVIRONMENT.
AND I THINK THAT'S HOW YOU CAN APPROACH IT IN A RATIONALIZE MANNER.
IT MAY TAKE, TAKE A A BIT, BUT TO THINK OF 17 OR 14 TO 17 MUNICIPALITIES COMING TOGETHER GOING, HEY, ROADS SUCK.
AND SO WE NEED TO DO SOMETHING, AND YET WE'RE GONNA SPEND, AND WE, WE ALL PUSH TOGETHER TO GO CREATE, YOU KNOW, WE DID THAT, THAT, UH, THE GOLDEN ARCH OR TRIANGLE, WHERE WE GONNA CALL IT, GET TOGETHER, FORCE A STATE TO STEP UP AND INVEST ABOUT ALMOST 11 BILLION IN FUTURE, IN FUTURE AND PRESENT, UH, CONSTRUCTION.
I MEAN, THAT'S, THAT'S PRETTY IMPRESSIVE.
AND WE'RE ALL, AND WE'RE, AND YET THIS IS WHAT WE WANTED, BUT YET EACH COMMUNITY IS MAINTAINED ITS OWN UNIQUE CHARACTER.
SO I THINK THE, THE, I THINK THE INFORMATION, STEVE, IS THERE.
HOW YOU APPROACH IT, NOT NE NECESSARILY JUST NUMBERS.
I THINK IT'S, IT'S A REFLECTION OF, OF WHAT OUR CONSTITUENTS WANT US TO DO.
AND THAT'S WHAT WE, YOU KNOW, WE KEEP OUR EAR TO THE GROUND, WE TALK TO OUR PEOPLE, AND THAT'S HOW WE COME, WE COME ABOUT MAKING IT HAPPEN.
IT'S JUST ADDRESSING, WELL, WHAT WE'RE TALKING ABOUT THOSE THAT NICE VERY IMPORTANT PERIODIC SURVEY WE TAKE WITH THE 75,000 PEOPLE THAT MAKE UP THE COUNTY.
THAT'S NOT THE EXACT EXACT NUMBER.
BUT THE POINT OF IT IS, YOU GOTTA START BY, YOU KNOW, WHAT, WHAT DO WE WANT? WE AS A COLLECTIVE CITIZEN, RIGHT? DO WE WANT TO BE NEWPORT NEWS? NO, I, WE DON'T WANNA BE NEWPORT NEWS.
WE ARE YOUR COUNTY AND THERE'S A WHOLE BUNCH OF STUFF THAT MAKES YOUR ACCOUNT WHAT IT IS.
BUT THE QUESTION IS, IF WE JUST STRIKE OUT AND DECIDE THAT, UH, YOU KNOW, HEY, THERE'S NEW QUARTER PARK UP, UP IN THE UPPER COUNTY, LET'S BRING IN SOME DEFENSE INDUSTRY AND MAKE THE CONTRIBUTION TO THAT DEFENSE INTEREST SO WE CAN GENERATE JOBS THAT MAKE TANKS AND PCVS AND ALL GOOD STUFF.
IT'S LIKE, WE'D BE CRAZY TO DECIDE SOME OF THAT STUFF.
WHAT THE HELL DO WE WANT? WE ARE ONLY 75,000 PEOPLE OR 72,000 PEOPLE, WHATEVER THE NUMBER IS.
BUT WE ARE NOT NEWPORT NEWS, WE'RE NOT HAMPTON, WE'RE NOT, WE'RE NOT IN GEM CITY COUNTY.
SO WHERE DO YOU BEGIN WITH THIS ANALYSIS? YOU JUST CAN'T HAVE BUNCH OF, A FEW, A FEW ELECTED PEOPLE MAKING DECISIONS THAT SAYS ECONOMICALLY SPEAKING, IT MAKES GOOD SENSE.
BUT IS THAT, IS THAT WHAT THE COMMUNITY WAS? YOU GOTTA START SOMEWHERE RIGHT NOW? WE DO.
HOW OFTEN DO WE DO THAT SURVEY? BASICALLY WE DO IT FIVE YEARS WITH THE INITIATION OF THE COMPREHENSIVE PLAN.
AND THAT GIVES US A VERY GOOD DIRECTION IN TERMS OF WHAT THE HELL THE FOLKS WHO PAY TAXES HERE WANT.
WELL, IT'S JUST A SATISFACTION SURVEY.
IT DOESN'T ASK THEM NECESSARILY, AT LEAST IT HASN'T.
IT'S FOLLOW WHAT THEIR VISION IS FOR THE AREA.
IT'S LIKE YOU AND YOU AND, UH, SHEILA, YOU AND WAL WERE ON THE BOARD AND WHEN I CAME IN, UM, AND THE RIVER WALK RESTAURANT WAS, YOU KNOW, IT WAS, I DON'T WANNA SAY IT WAS TEETERING, BUT IT WAS AT A POINT WHERE, YOU KNOW, WHICH WAY DO WE GO AND WE GOTTA DEAL WITH THE, YOU KNOW, THE NICK'S RESTAURANT AND ALL THAT STUFF.
BUT, BUT THAT WAS A GREAT EXAMPLE TO ME AND YOU, HERE WE ARE ALL THESE YEARS LATER TALKING ABOUT HOW MUCH, HOW BEAUTIFUL IT IS.
AND DESTINATION, I MEAN, IS WHAT A GUN REACHING, UH, EXERCISE THAT WAS.
AND, BUT YES, WHAT HAPPENED IS YOU BROUGHT TWO STUDIES TOGETHER INVOLVING PEOPLE IN THE COMMUNITY SAYING, WHAT DO WE WANT? MM-HMM.
AND THAT WAS, THAT WAS 13 YEARS IN THE MAKING JUST TO GET TO THE POINT WHERE WE DECIDED TO DO IT.
SO THAT'S HOW YOU YEAH, THAT'S, THAT WAS A GREAT EXAMPLE OF, OF, OF GOVERNMENT LISTENING TO THE PEOPLE TO BUILD THE COMMUNITY THAT WE WANT.
YOU NEED INPUT FROM EVERYBODY.
[01:25:01]
DOWN TO IT, IT'S A DECISION THAT BOARD MAKES.AND RIGHT OR WRONG, IF THE DECISION THE BOARD MAKES AND WE LIVE WITH IT, SO IN CONCLUSION AND PLANNING NEXT YEAR'S BUDGET,
I THINK THE MODEST GROWTH THAT MAKES SENSE.
I THINK, YOU KNOW, LOOKING FORWARD, THERE'S JUST A WHOLE LOT OF UNCERTAINTY AHEAD.
YOU KNOW, UNFORTUNATELY, GLOBAL UNCERTAINTY THAT THAT IS GONNA HAM FOR US.
UH, WE STILL HAVE NO IDEA OF COURSE WHAT'S GONNA GO ON IN UKRAINE AND THAT THERE'S STILL, STILL IMPLICATIONS THERE IN CHINA MIGHT BE JUST EVEN BIGGER THAN THAT.
UM, SO THERE'S, THERE'S GLOBAL CONCERNS THAT COULD CERTAINLY HAVE RAMIFICATIONS HERE, BUT, UM, FOR HAMPTON ROADS, WE'RE NOT IN A BAD PLACE.
UM, YOU KNOW, IN THE NEXT COUPLE YEARS, WE'RE NOT IN A BAD PLACE.
SO GREG, I CAN'T THANK YOU ENOUGH FOR COMING AGAIN.
I ALWAYS LOOK FORWARD TO YOUR PRESENTATION.
GIVES US A LOT TO THINK ABOUT.
THANK YOU ALL SO MUCH FOR HAVING ME.
BEFORE YOU GO, ANY MORE QUESTIONS BEFORE GREG LEAVES? THANK YOU.
[CONSENT CALENDAR]
OKAY.NOW, WHICH AT THE CONSENT CALENDAR, UH, ITEM NUMBER ONE IS THE APPROVAL OF MINUTES.
ITEM NUMBER TWO IS MANAGEMENT SERVICES AGREEMENT NUMBER THREE IS THE BOARD OF POLICY, THE PRO PROPOSED REVISIONS AND ADDITIONS.
HOPEFULLY YOU'VE ALL READ THAT.
NUMBER FOUR IS THE REQUEST FOR REFUND FOR REAL ESTATE TAX, WHICH WE END UP HAVING TO DO.
FIVE IS THE APPROVAL OF PROCUREMENT FOR REPLACEMENT AMBULANCE, AND THAT'S NECESSARY.
AND NUMBER SIX IS FIRE STATION NUMBER SEVEN, ALERTLY SYSTEM, WHICH OF COURSE IS NECESSARY.
AND NUMBER SEVEN IS THE RATIFICATION OF DECLARATION OF LOCAL EMERGENCY.
AND THAT WAS DONE WHEN WE HAD THE, THE FLOODING THAT WE THOUGHT WE WERE GONNA HAVE JUST IN CASE WE NEEDED TO DO THAT.
SO ANY, I HAVE A CALL ITEM YOU'D LIKE TO PULL.
BUT I GOT A COUPLE QUESTIONS FROM, UH, IF I CAN FIND THEM ONE.
I GOTTA, I GOTTA REMEMBER WHICH ONE IT WAS A BUNCH OF THEM HERE.
I WANT TO TOUCH UPON TWO AND FIVE PLEASE.
UH, FOUR FOR ME IS ONE OF THEM.
I'M JUST TRYING TO READ MY NOTES HERE.
MANAGEMENT SERVICES AGREEMENT.
WHAT IS THE ISSUE ON THAT? WELL, I, I WAS WONDERING IF YOU COULD KIND OF GIVE US AT LEAST, AT LEAST ME ANYWAY, A FEEL FOR THE DAY TO DAY OPERATIONS OR DAY TO DAY SERVICES THAT THE, UM, COLONIAL JUVENILE SERVICES COMMISSION PROVIDE.
I, I, I JUST, I DON'T HAVE A GOOD PICTURE OF THAT.
SO, UH, SO THIS IS, UH, AN AGENCY THAT, UM, YORK COUNTY STAFFS AND MANAGES IN THIS AGREEMENT IS, UH, ALLOWS THE OTHER LOCAL GOVERNMENTS TO PARTICIPATE TO SORT OF ACCEPT OUR ROLE AS THE FISCAL AGENT, RIGHT? AND, UM, USED TO OF COURSE INCLUDE THE LESS SECURE DETENTION FACILITY, WHICH WE'VE CLOSED, BUT IT STILL PROVIDES, UM, SERVICES RELATED TO, UH, JUVENILES AND THE CRIMINAL JUSTICE SYSTEM, UM, IN YOUR COUNTY AND ALSO NEIGHBORING JURISDICTIONS.
AND BRIAN, YOU'RE PROBABLY THE ONE WHO HAS THE BEST FEEL FOR WHAT IS THAT ACTION? WHAT DO WE ACTUALLY DO? DO THEY STILL HAVE A FLAG THAT FLIES THAT TELLS US WHERE THEY'RE LOCATED? THERE IS NO FACILITY ANYMORE.
LOT PEOPLE WORK IN THE VARIOUS COURTHOUSES.
SO THIS ISN'T A, A, A BUILD IN THAT, THAT PEOPLE, OKAY.
SO THAT'S ONE PART OF THE PUZZLE.
SO IT'S, UH, THE COLONIAL JUVENILE SERVICES COMMISSION, WHICH BACK IN JUNE, WE BROUGHT FORTH THE FOUNDING DOCUMENTS TO CHANGE THE NAME MM-HMM.
SO THIS AGREEMENT IS BASICALLY THE AGREEMENT BETWEEN THE COMMISSION AND THE COUNTY AS THE NAME HAS CHANGED, JUST MORE OF A HOUSEKEEPING THING.
BUT WHAT THEY DO BASICALLY FOCUS ON THREE THINGS.
COMMUNITY SUPERVISION, WHICH IS DOING 10 SUPERVISION OF KIDS IN THEIR HOMES THAT HAVE BEEN MANDATED BY THE COURT AND ELECTRONIC MONITORING.
SO THEY GO OUT AND PUT ELECTRONIC MONITORS ON THE KIDS SO THEY KNOW WHERE THE KIDS ARE.
I, UNLESS THEY CUT, THEY DO FROM TIME TO TIME.
AND THEN WE GO PUT ANOTHER ONE ON
WE DO A LOT OF COUNSELING THERE.
UH, DRUG SCREENING, EARLY INTERVENTION AND PREVENTION GROUP,
[01:30:01]
UH, SUBSTANCE ABUSE CLASSES INDIVIDUALLY AND GROUP.UH, AND THEN WE'VE JUST STARTED A CHECK IN THAT CONNECT PROGRAM THAT WE'RE WORKING WITH THE LOCAL SCHOOLS ON TRUANCY.
AND THEN PROJECT INSIGHT WHERE THEY DO COMMUNITY SERVICE HOURS.
KIDS ARE, UH, REQUIRED TO DO COMMUNITY SERVICES BY THE COURTS.
UH, WE DO THAT AND DO A LOT OF EDUCATION.
ONE IN TWO CLASSES FOR KIDS THAT HAVE BEEN SERVICED BY THE COURTS.
THE COMMISSION, UH, IS SERVED BY FOUR JURISDICTIONS.
YOUR COUNTY, JAMES CITY COUNTY, WILLIAMSBURG, AND GLOUCESTER.
AND THEN BOTH MATTHEWS AND PACOIN ALSO PURCHASE SERVICES OR THEY'RE PART OF THE, THEY PAY IN, BUT THEY'RE NOT ONE OF THE FOUNDING MEMBERS, UH, OF THE COMMISSION.
NO, STEVE IS NO LONGER THE CHAIRMAN.
STEVE'S BEEN A LONG SERVING BOARD MEMBER OF THAT, PROBABLY AS LONG AS I'VE BEEN INVOLVED IN LONGER THAN THAT, UH, ON THE COMMISSION.
WHO HAS FOR THAT ONE? I ASKED FOR THAT, BUT I MAY HAVE IT IN THE WRONG ONE, SO SOMEBODY'S GOT TO, BUT THE QUESTION WILL BE THIS.
I WAS READING, READING THROUGH, AND IT MAY BE THE, THE THING WE HAD ON POLICY, WHAT IS A TENDERING RATE? AND MAYBE ON, IT'S PROBABLY NOT ANOTHER TAX ONE, BUT I WROTE IT DOWN AND SOMEHOW PUT MY NOTE ON THIS ONE.
BUT WHAT'S A TENDERING RATE AND WHY IS IT $500? UH, THAT SOUNDS LIKE SOMETHING IN THE BOARD POLICY PROBABLY WHERE IT WAS POLICY AND WHICH ONE WAS THAT THREE CHRISTY'S GONNA ANSWERED THAT IT WAS THREE.
I'M JUST SORRY, I DIDN'T, YEAH, IT WAS IN THE, UM, DOC MASTER POLICY, UM, OR THE DOC POLICY I SHOULD SAY.
UM, WE WERE CREATING A TENDERING FEE, UM, FOR WHEN SHIPS ARE TOO LARGE TO DOCK AT OUR PEERS.
THEY HOOK AT THE BUOYS OUT THERE.
THEY MORE IN NEW YORK RIVER, AND WE TENDER THEM IN AND IT'S A SERVICE O OKAY.
YOU TEND TO, WE THEY DO NOW WE WE DO IT, OR THEY, THEY DO IT, THEY BOATS, BUT THEY TENDER BACK AND FORTH ALL DAY.
BUT IT, IT REQUIRES ADDITIONAL STAFFING AT THE DOCKS ON OUR PART FOR TENDERING SERVICES.
AND THE REASON I WAS ASKING IS BECAUSE IT SOUNDED LIKE WHEN YOU, YOU, YOU KNOW, FOR, FOR A BIT THERE, I THOUGHT, WELL, ARE WE GONNA CHARGE 500 PEOPLE TO DOCK YOU COME UP? NO.
I HAD THE, I HAD THE, CAUSE THAT WAS THE OVERNIGHT, MAYBE THE BOARD.
SO IT'S, IT IS THE BIGGER BOATS THAT ARE THE COMMERCIAL.
NOT, NOT, LIKE YOU SAID, SOMEBODY COMES DOWN THE RIVER AND ENDS UP STAYING THE NIGHT YOU COST $500.
NOW WE HAVE A, WE HAVE A BIG, I'VE SEEN THIS MULTILEVEL SHIP COME IN AND, AND GET RIGHT UP ON OUR DOCK.
NOW, ARE WE CHARGING THEM 500 BUCKS? AMERICAN CRUISE LINES? BUT WHATEVER, ANY OF THE CRUISE SHIPS THAT COME ARE PAYING THE COMMERCIAL RATES.
UM, BUT THEY'RE NOT TENDERING BECAUSE THEY'RE DOCKING RIGHT AT OUR TIER, BUT THEY PAY A CERTAIN PERCENT OF CERTAIN FEE PER SQUARE, PER FOOTAGE OF THE BOAT.
NOW, LET'S SEE, NUMBER FIVE, I HAD, I HAD NUMBER FIVE.
IS IT PROCUREMENT OF THE REPLACEMENT AMBULANCE? WHAT'S A PROBLEM WITH THAT ONE? WELL, IT'S NOT A PROBLEM, BUT I DID HAVE SOME QUESTIONS AND NOW I'M LOOKING FOR MY NOTES THAT I HAD, UM, HAD KIND OF, I HAVE A NOTE ON THAT QUESTION ON THAT ONE.
ALSO, I KIND OF SEATED THOSE QUESTIONS EARLIER TO GIVE FOLKS TIME TO PULL 'EM TOGETHER.
UM, UM, I, I GOT A LOT OF EMAILS GOT SENT OUT HERE.
UM, SO, SO I, SO FIRST QUESTION, THIS IS, THIS IS A, THIS IS BY THE NEW AMBULANCE, SO IT'S REPLACEMENT.
SO WHAT'S HAPPENING TO THE OLD ONE? ARE WE SELLING IT OR IS WHAT'S, SO THERE'S A 24 TO 28 MONTH DELIVERY PERIOD, RIGHT? THAT'S NOT RIGHT.
SO AT THE POINT THAT THE NEW UNIT IS RECEIVED, UH, AND IT'LL REPLACE AN EXISTING UNIT, WE'LL MAKE IT A DECISION THEN WHETHER IT'S SURPLUS OR IF THERE'S A MARKET TO TRADE IT IN.
UM, SO WHAT, WHAT IS THIS A ISSUE OF MILEAGE TIME ON THE MOTOR? ARE WE HAVING ISSUES? WELL, I KNOW WE GOT TWO, TWO YEAR LEAD TIME THAT WE ANTICIPATING WHAT, WHAT KIND OF, WHAT TRIGGERED TO SAY, HEY, WE NEED TO MAKE THIS DECISION.
SO MILEAGE, THE, THE 24 TO 28 MONTH DELIVERY TIME IS REALLY WHAT'S DRIVING THAT.
SO WORKING WITH THE SHOP, OUR VEHICLE MAINTENANCE DIVISION, WE HAVE TO FORECAST RIGHT? WHEN WE BELIEVE THAT A, A VEHICLE IS GOING TO BE STARTING TO CAUSE US SIGNIFICANT PROBLEMS. OF COURSE WE LOOK AT, YOU KNOW, MILEAGE, UH, THE NUMBER OF HOURS ON THE VEHICLE, AND THERE'S A FORMULA WE USE TO GIVE US MILEAGE EQUIVALENT TO DETERMINE REPLACEMENT.
UH, YOU KNOW, THE, THE MAINTENANCE OF THE THINGS LIKE THE DRIVE TRAIN AND THE MOTOR AND THAT SORT OF THING.
SO IN TALKING WITH THE SHOP AND KNOWING THAT OUR TYPICAL LIFESPAN IS SIX TO EIGHT YEARS, SOMETIMES WE CAN EAT OUT 10 YEARS OUT OF A MEDIC UNIT.
RIGHT? THEN WE WERE LOOKING AT THIS AND, AND
[01:35:01]
REALLY OUR OLDEST UNITS ARE 2014 YEARS.SO BY THE TIME WE GET THIS UNIT IN, THOSE UNITS WILL BE 10 TO 12 YEARS OLD.
UH, AND PROBABLY HAVE WELL IN EXCESS OF, WELL NOW THEY'VE GOT ABOUT 300,000 MILES EQUIVALENT ALONG THEM.
SO, I MEAN, IN THE SERVICE AND IN THE SERVICE LIFE ISSUE IN A COUPLE YEARS.
UM, ALRIGHT, SO, SO THE BID PROCESS, SO I'VE READ IN THE, IN THE MEMORANDUM, THE BID PROCESS IS WITH HOUSTON GALVESTON AREA COOPERATIVE, AND IT WAS THEN IT WAS AWARDED TO ATLANTIC EMERGENCY SOLUTION.
HOW DOES THAT, HOW DOES THAT COOPERATIVE WORK? HOW WHAT? SO THE, THE, UH, FIRST ANY OF OUR PROCUREMENTS ARE DONE IN DIRECT COORDINATION WITH OUR PURCHASING DIVISION.
WE HAVE TO VERIFY, MAKE SURE THAT IT IS A COMPLIANCE WITH VIRGINIA LAW, THE PROCUREMENT ORDINANCES.
AND SO WITH THIS, IT'S, THE PROCESS IS VERY SIMILAR TO DOING OTHER, OTHER BIDS IN VIRGINIA.
IN THIS CASE, I DID CHECK WITH OUR, THE PURCHASING DIVISION, AND THEY DID THE ADDITIONAL RESEARCH.
OF COURSE, THEY HAVE TO APPROVE ANY PROCUREMENT THAT WE MOVED FORWARD TO THE BOARD, RIGHT? SO IN THIS CASE, I BELIEVE THEY INDICATED THERE WERE ABOUT, UH, 24 OFFERS OR BIDDERS THAT WENT THROUGH THE HOUSTON GALVESTON AREA COOPERATIVE, UH, COOPERATIVE PURCHASING PROGRAM.
AND IT WAS ACTUALLY, THE BID SUBMITTED, UH, WAS BY THE MANUFACTURER, WHICH IS ROAD RESCUE, AND THEY DID IT ON BEHALF OF THE, THEMSELVES AND THEIR OTHER DEALERS ACROSS THE COUNTRY.
SO IT, IT'S A COOPERATIVE PROCUREMENT VEHICLE THAT IS USED ROUTINELY.
UH, WE'VE USED IT A NUMBER OF TIMES, BUT IT'S USED ROUTINELY BY LOCAL GOVERNMENTS ACROSS VIRGINIA AND ACROSS THE COUNTRY.
SO, I MEAN, IT'S, IT'S FULLY VETTED AS A, UH, PROPER PROCUREMENT, UH, PROCESS.
THE WAY I UNDERSTAND IT, JUST ON THAT PART.
UM, SO WE DON'T REALLY HAVE ANY SIGNIFICANT BUYING POWER IF WE WERE JUST TO, YOU KNOW, SOLICIT BIDS FOR A SINGLE AMBULANCE FROM A MANUFACTURER.
AND, AND SO THIS COOPERATIVE, WHICH LOCALITIES ALL AROUND THE COUNTRY HAVE SORT OF CONNECTED WITH, HAS BUYING POWER.
SO YOU GET A FAVORABLE PRICE BY GOING WITH THEM AND MM-HMM.
CURRENTLY, IT'S NOT EVEN CLEAR, YOU KNOW, WHETHER SOMEBODY WOULD, YOU KNOW, MAKE US AN OFFER IF WE, IF WE JUST BID IT BY OURSELF.
ALL SO THAT NO, THAT MAKES SENSE.
SO IT'S, IT'S A COOPERATIVE BUYING PROGRAM.
SO NOW UNDERSTAND HOW, AND THEN AT THE END OF THE DAY, UH, ATLANTIC EMERGENCY SOLUTIONS GAVE US THE BEST BID.
SO THEY'RE, THEY'RE LIKE THE LOCAL DEALER AS THEY ARE.
SO IT'S A 15, THE VEHICLE IS A ROAD RESCUE MEDIC UNIT, BUT THEY ARE THE DESIGNATED DEALER FOR OUR REGION.
SO IF YOU BOUGHT A TOYOTA, TOYOTA WOULD MAKE IT, BUT THEN THE SERVICE AND ALL AND THE FINAL PREP WOULD COME THROUGH THE LOCAL TOYOTA DEAL.
SO, SO THE TERM COOPERATIVE IS NOT SYNONYMOUS WITH COMPETITIVE? NO, IT IS.
I MEAN, IT IS A COMPETITIVE BID.
IS IS IT THE LOWEST BID? IT'S IT'S THE LOWEST, YEAH.
I DON'T, I DON'T KNOW THE SPECIFICS OF IT, BUT IT'S OKAY.
UH, IT CERTAINLY, IT, IT'S A, IT'S COOPERATIVE IN THAT, YOU KNOW, A NUMBER OF GOVERNMENT ENTITIES CAN PURCHASE OFF OF IT AND IT REALLY SAVES US ALL A LOT OF TIME AND EFFORT SO THAT, YOU KNOW, JUST, JUST TO PULL TOGETHER THE INFORMATION TO GO OUT.
LIFESPAN IN THE NEW VEHICLE BY 12 YEARS, YOU SAID? SIX TO EIGHT.
UH, MAY, SOMETIMES WE CAN E OUT 10.
IN THIS CASE IT'LL, THEY'LL BASED ON THE, AND THAT'S WHY WE MOVE FORWARD WITH HIS PROCUREMENTS.
BUT NOW IT'S, YOU KNOW, TWO YEARS, LITTLE OVER TWO YEARS DELIVERY.
SO THESE UNITS WILL PROBABLY BE 11.
THE UNITS THAT WE'RE REPLACING WILL PROBABLY BE 11, MAYBE 12 YEARS OLD.
THINK CHIEF, ARE WE LOCKING IN A PRICE BY? WE ARE.
AND YOU KNOW, THAT'S A GOOD POINT.
UH, THERE HAVE BEEN CIRCUMSTANCES WHERE, UH, YOU DO A PROCUREMENT AND THE NEXT THING YOU KNOW THAT EITHER MANUFACTURER DEALER COMES BACK AND SAYS, OH, WE CAN'T HONOR THAT, BUT IT, IT DOESN'T LOCK IN A PRICE.
SO AS MY, AS MY MEMO SAID, YOU KNOW, WE ARE WORRIED ABOUT THE NEXT ONE AFTER THIS MM-HMM.
AND SO FIRE DEPARTMENT'S PURSUING A GRANT AND IF WE GET PARTIAL GRANT FUNDING, I MIGHT VERY WELL COME BACK AND SAY IT'S BEST FOR ANOTHER ONE.
WE NEED TO GET ANOTHER ONE IN A QUEUE BECAUSE OF THE, THE TIMING.
TO GIVE YOU AN IDEA, THREE, FOUR YEARS AGO WE WERE RECEIVED, WE COULD GET A MEDIC UNIT IN WITHIN EIGHT OR NINE MONTHS, AND NOW WE'RE FACING OVER
[01:40:01]
TWO YEARS FOR DELIVERY.UH, I MEAN, SO, AND YOU KNOW, IT'S, IT'S, IT'S JUST PRODUCT AVAILABILITY, CHA VEHICLE CHASSIS.
IN THESE CASES THEY'RE COMMERCIAL CHASSIS AND JUST GETTING THE MANUFACTURERS FOR CHASSIS TO COMMIT TO GETTING THOSE DELIVERED TO THE AMBULANCE MANUFACTURER THEMSELVES.
SO THE DIRECTOR OF FINANCE WAS WATCHING AND SHE JUST TEXTED ME AND SHE SAID IT IS THE LOWEST PRICE.
THANK THANKS CHIEF FILLING IN THE BLANK.
I STILL HAVE A QUOTE QUESTION.
SO YOU WANT ON THIS ONE TOO? YES.
UM, SO GREAT, GREAT QUESTIONS CUZ YOU KIND OF, I THINK IT, I THINK YOU ANSWERED MY QUESTION.
SO IN OUR WORDING, I'M GONNA DO THE LAST ONE FIRST AND THE WORDING WE SAY TO AUTHORIZE THE COUNTY ADMINISTRATOR TO MAKE PURCHASE ARRANGEMENTS SO WE'RE NOT ACTUALLY PURCHASING IT.
AND THEN, THEN YOU'RE JUST MAKING THE ARRANGEMENTS CHIEF THROUGH THE PURCHASE.
SO THEN HE COMES BACK TO THE BOARD.
NO, IT JUST MEANS I'M AUTHORIZED TO SIGN ALL THE DOCUMENTS.
THAT WAS THE LEGAL PART OF THAT.
I'VE SEEN THIS FOR YEARS AND I ALWAYS WONDERED WHAT IT MEANT.
AND SO THE GRANT, THE GRANT FUNDS FOR ACQUISITION, I GOT THE IMPRESSION THE WAY IT WAS PUT IN HERE THAT IT ACCELERATED THE PURCHASE, WHICH I THINK YOU JUST JUST ADDRESSED.
THIS ONE IS NOT USING GRANT FUNDS.
THIS ONE I KNOW, BUT IT SAYS YOU ARE STILL APPLYING FOR GRANT FUNDING.
BUT THAT WAS, AND IT WAS TO IT MY WAY YOU JUST DESCRIBED IN THE WAY MY UNDERSTANDING WASN'T THE WORDING IS THAT THAT WOULD ACCELERATE DELIVERY OF, OF OF OR WHAT? HOW DOES THAT WORK? THAT WAS NOT MY INTENT WITH WHAT I, WHAT I WROTE THERE.
SO, UM, THEY HAVE AN OPPORTUNITY TO MAYBE GET 30 OR 40% OF THE MONEY FOR ANOTHER AMBULANCE.
THAT'S WHAT AND I ASKED THEM AND WE DON'T BUY ANY SOONER THAN WE NEED.
NO, I JUST ASKED THEM TO GO AHEAD AND APPLY FOR THE GRANT.
AND IF WE GET THE GRANT THEN WE MIGHT, WHAT I WAS TRYING TO SAY IS PROBABLY GONNA COME BACK, TRY TO COBBLE TOGETHER THE FUNDS TO GET ANOTHER ONE IN THE QUEUE.
SO WE HAVE, WE HAVE ANOTHER UNIT THAT'S OF SIMILAR VINTAGE IF YOU WILL.
IT'S THAT DIFFERENT WAY I WAS READING AT THE END.
HAVE SIMILAR VINTAGE THAT, YOU KNOW, WE, WE OUGHT TO GET IN THE QUEUE FOR REPLACEMENT OR ELSE WE'LL FIND OURSELVES BEHIND THE EIGHT LAW.
WE WERE VERY SURPRISED WITH THIS LATEST DELIVERY TIMEFRAME THAT WE WERE PROVIDED CUZ THE LAST UNIT, THE VERY LAST UNIT WE ORDERED WERE 18 TO 19 MONTHS.
SO IT'S CONTINUED TO EXTEND OUT.
SO OF COURSE WE DIDN'T IN THIS CASE WE CERTAINLY HAD THE FUNDING IN OUR CAPITAL IMPROVEMENT PROGRAM.
NEXT CASE, IF WE ARE SUCCESSFUL FOR THE, WITH THE GRAD, THEN THAT WILL HELP US WITH THE PROCUREMENT OF ANOTHER UNIT.
LORD HAS AGENDA NUMBER SIX, FIRE STATION SEVEN ALERTING SYSTEM.
CONSIDER ADOPTION A PROPOSED RESOLUTION OR 22 DASH 56 TO EXECUTE A CONTRACT WITH MO TO SOLUTIONS.
THANKS FOR A FIRE STATION LEARNING SYSTEM.
THAT SOUNDS LIKE A SO SOURCE KIND OF A PROCUREMENT IS THAT IT'S USUALLY I'LL, I'LL LET ADDRESS THAT.
HANDLES THAT GET TO, I HAVE A QUESTION ON THAT ONE ALSO.
UH, TO MOTOROLA, THIS WILL BE STATION NUMBER 19 OR 20 THAT HAVE BEEN CONSTRUCTED BY MOTOROLA SINCE 2003.
IT'S THE SAME UH, LEARNING SYSTEM ACROSS THE COUNTRY ACROSS, NOT ACROSS THE COUNTRY BUT BETWEEN OUR PARTNERS.
UH, WE HAVE 'EM IN YOUR COUNTY, WE HAVE 'EM IN JAMES CITY COUNTY.
IT'S, UH, INTERFACED AND INTEGRATED INTO OUR COMPUTER SYSTEMS THAT WE USE IN THE CENTER.
SO AS SOON AS WE DROP A CALL INTO OUR SYSTEM, IT ACTUALLY SENDS THE PAGE OUT TO ALERT THE FIRE STATIONS.
YEAH, I KNOW WE IN THE PAST WE'VE DEALT WITH MOTOROLA A LOT AND I PRESUME PART OF THAT IS BECAUSE WE'RE PRETTY DAMN SATISFIED WITH WHAT THEY PRODUCE.
AND ONCE YOU BUY A AN INFRASTRUCTURE FROM A COMPANY LIKE THAT, YOU TEND TO LOOK AT ALL OF THEIR PRODUCTS AND UH, COMPETITIVELY BID WHAT YOU CAN.
WE ALSO BUY SOME THINGS OFF OF CONTRACT.
UH, THIS IS PRETTY MUCH IN LINE WITH THE ONE THAT WE PURCHASED LAST WITH TWO YEARS AGO, CHIEF FOR ONE, FOR THE FIRE STATION NUMBER ONE.
AND UH, IT'S UH, IT MEETS AN FPA REQUIREMENTS.
WE UPDATE THEM EVERY TIME THAT WE DO A QUOTE.
LIKE THE ONES WE PUT IN IN 2003, YOU KNOW, WAS BASICALLY RADIO SYSTEMS AND SPEAKERS AND LIGHTS THROUGHOUT THE STATION AND CLATON.
SO THEY HAVE A NIGHT SWITCH SO AT NIGHT THEY'LL LISTEN TO ALL THE RADIO TRAFFIC.
MAYBE IT WOULD BE HELPFUL TO JUST GIVE LIKE A ONE MINUTE DESCRIPTION OF HOW THIS THING WORKS.
THE CALL COMES IN, HOW DOES IT GO TO THE FIRE STATION? WHAT DOES IT DO? YEAH.
SO WHEN A NINE ONE ONE CALL COMES IN FOR AN AMBULANCE, A FIRE TRUCK, YOU KNOW, UH,
[01:45:01]
ANYTHING THAT WE HAVE THAT WE'RE GONNA DISPATCH OUTTA THE FIRE STATION, THE DISPATCHER PUTS INTO THE COMPUTER A TWO DIGIT CODE AND IT'LL SAY LIKE, UH, IT NEEDS AN AMBULANCE.SO THAT CALL DUMPS INTO ANOTHER SYSTEM THAT'S A COMPUTER SYSTEM AND WHEN THEY DISPATCH THE CALL, THEY HIT A BUTTON AND IT DISPATCHES IT.
WHAT HAPPENS IN THE FIRE STATIONS, THE FIRE STATIONS ARE DARK.
IT'S TWO O'CLOCK IN THE MORNING.
THE LIGHTS THAT ARE RED MOUNTED UP IN THE CEILING GRADUALLY COME UP.
THE CLS AND SYSTEM THAT ALERTS 'EM TO WAKE 'EM UP GRADUALLY GOES FROM A LOW TONE UP TO A HIGH PITCH TONE.
ALL THE STATION SPEAKERS OPEN UP AND THEY NOW HAVE A LIT WAY AND THEY'RE LISTENING TO THE DISPATCHERS ARE GETTING DRESSED SAYING WE HAVE A A FIRE ALARM AT, YOU KNOW, 3 0 1 GOOD WIND NEXT ROAD.
AND THEN THEY DISPATCH EVERYONE FIRE DEPARTMENT CAN WALK OUT THE STATION AND THEN THE EQUIPMENT GOES BACK TO SLEEP.
SO THE LIGHTS TURN BACK OFF AND, AND SO ON.
ARE THEY'RE READY FOR THE NEXT CALL.
WHEN THEY WAKE UP AT SEVEN THE NEXT MORNING IS WHEN WE WAKE UP THE STATION, WE ALERT THE STATIONS AND THEY STAY ON UNTIL 10 O'CLOCK AT NIGHT.
AND ON THE MOTOROLA PIECE, IT'S MY UNDERSTANDING IT WOULD BE TECHNICALLY POSSIBLE TO BUY SOME OTHER PRODUCT, BUT IF YOU DID, YOU WOULD THEN HAVE TO SPEND A BUNCH OF OTHER MONEY TO INTERFACE IT.
AND TRUST ME, IN A INFRASTRUCTURE LIKE THIS, YOU WANT A HOMOGENEOUS ONE VENDOR SOLUTION CUZ YOU WANT ONE THROAT TO CHOKE WHEN SOMETHING BREAKS AND YOU DON'T WANT VENDORS REPORT.
I THINK IT'S EACH OTHER SAYING NO, IT'S THEIR GUY'S PROBLEM, NOT MY PROBLEM.
LIKE SOMEBODY IN THE TECHNOLOGIES LIVED IT.
KIND OF, IT'S KIND OF A PROCESSING, UH, BIT.
SO I THINK WE'RE GONNA 1.3, 1.4 MILLION ON THE STATION THAT YEAH, THE TOTAL COST OF THE STATION BUILT AND ALL THE FURNITURE AND EQUIPMENT AND ALL IS SOME, I WANNA SAY SOMETHING LIKE THREE AND A HALF MILLION.
SO WHEN I SAW THIS, I I KIND OF, UH, AND THEN, YOU KNOW, EVERY PURCHASE ABOVE A HUNDRED THOUSAND, A HUNDRED THOUSAND MORE COMES TO THE BOARD FOR APPROVAL AND, AND WE'VE GOT A FIRE STATION AND I'M, AND THIS ONE'S COSTING $163,000 FOR THIS.
AND I KIND OF WONDERED, WE, YOU KNOW, IN OUR PROCESS OF MOVING FORWARD WHEN WE APPROVE THE FIRE STATION TO BE BUILT, WERE WE GONNA PROVE A FIRE STATION WITH AN ALARM SYSTEM? WELL THAT'S AN INTERESTING QUESTION ACTUALLY.
WE TALKED ABOUT THIS BECAUSE, YOU KNOW, UNDER THE LETTER OF THE RULES, THIS, THIS WAS NOT PART OF THE HENDERSON DESIGN BUILD CONTRACT TO BUILD THE FIRE STATION.
ALTHOUGH WE DID, WE HAD A BUDGET FOR FURNITURE AND TECHNOLOGY.
SO YOU DID APPROVE THE OVERALL POT OF MONEY, BUT THE HENDERSON CONTRACT DID NOT INCLUDE CERTAIN PIECES AND, BUT CAUSE THIS WAS OVER A HUNDRED THOUSAND DOLLARS.
YOU KNOW, BUT THE REALITY IS NOW WE'D BE CRAZY TO BUILD A STATION AND NOT DO THIS.
IN RETROSPECT, WE COULD HAVE DONE IT DIFFERENTLY.
WE COULD HAVE MAYBE HAD A, WHEN YOU ALL VOTED FOR THE STATION, YOU COULD HAVE HAD A MORE ALL ENCOMPASSING APPROVAL THAT AUTHORIZED ME TO PROCURE ALL THE COMPONENT PARTS OR SOMETHING SO YOU WOULDN'T HAVE TO VOTE ON IT AGAIN.
SO UNDER OUR POLICY, YOU KNOW, I REALLY, IT WAS, WELL IT KEEPS US IN THE DISCUSSION AND AWARENESS OF IT, BUT I JUST, TO ME IT JUST SEEMED KIND OF RIDICULOUS THAT 163,000 OUT OF THREE AND HALF MILLION DOLLARS INDIVIDUAL ITEMS. SO WE'RE GONNA HAVE MORE OF THESE THINGS POP UP.
THE I, THE OTHER ONES THAT I'M AWARE OF ARE, ARE BELOW THE A HUNDRED THOUSAND DOLLARS THRESHOLD.
WHICH IF IT'S IN, IF IT'S A CAPITAL PROJECT, YOU DON'T HAVE TO APPROVE SEPARATELY.
THIS PARTICULAR, WE DON'T NECESSARILY, WE WANNA KNOW WHAT'S GOING ON, BUT WE DON'T NECESSARILY WANNA DELAY IT THROUGH GOING THROUGH THIS MOBILE PROCESS.
IT WAS SORT OF A GRAY AREA AND I WAS JUST, I JUST DIDN'T WANNA SAY, AH, I JUST DO IT.
AND MR. SHEPHERD, I WOULD PRAY PARTIALLY BLAME ON THIS TOO.
WHEN WE WERE PUTTING TOGETHER THE PRICING TECHNOLOGY WAS RAMPANT AND SO WAS THE SUPPLY CHAIN.
SO WE WERE ANTICIPATING THAT WE MAY HAVE TO PAY AS MUCH AS 25 OR 35% MORE.
AS IT TURNED OUT, WE WERE ABLE TO NEGOTIATE A DEAL AND WITH MOTOROLA, BECAUSE WE'RE A DECENT SIZE CUSTOMER AND WE WERE ABLE TO GET THE EQUIPMENT THAT WE NEEDED PUT ON A PUBLIC SAFETY RUSH SO THAT WE COULD GET OUR EQUIPMENT UP FRONT.
LET ME UNDERSTAND RATIONALE LINE.
BUT I MEAN FOR THE BOARD WE WANT TO KNOW WHAT WE'RE BUYING AND HOW MUCH WE'RE GONNA SPEND ON IT.
RIGHT? SO WHEN WE COMING BACK, KEEP COMING BACK AND FORTH WITH THESE, YOU KNOW, A HUNDRED THOUSAND DOLLARS ITEMS HERE OR SOME AMOUNT OF MONEY OVER THERE AND EVENTUALLY WE DON'T KNOW HOW MUCH THIS THING COST UNLESS WE KNOW TO GO, HEY, HOW MUCH DOES THIS THING COST US? IT WAS INCLUDED IN THE DOLLAR AMOUNT THAT YOU SET ASIDE.
SO IT WAS INCLUDED IN THE DOLLAR AMOUNT BUT NOT THE CONTRACT.
I THINK THE CHIEF GOT SOMETHING TO, WELL, I WAS JUST GONNA SAY, THERE MAY BE ONE, I BELIEVE AT LEAST ONE OTHER
[01:50:01]
ITEM, PERHAPS ANOTHER, BUT THE AIR COMPRESSOR THAT'S GOTTA GO IN THERE.WHICH WILL BE GRANT FUNDED, BUT THAT'S OVER THAT DOLLAR THAT'LL PROBABLY, WE ANTICIPATE THAT WILL BE SLIGHTLY OVER THE HUNDRED THOUSAND DOLLARS.
WELL, BUT YOU SAID IT WAS INCLUDED.
THAT'S QUITE ALMOST QUARTER MILLION DOLLARS WORTH OF STUFF, RIGHT? IT'S COMING.
THAT'S SEPARATE FROM WHEN WE SAY WE'RE BUILDING YOU KNOW WHEN ABSOLUTELY WAS INITIALLY ADVERTISED TO US.
WELL, NO, I, WELL, I HAVE TO GO BACK AND SEE ALL THE STUFF THAT WE SENT YOU, BUT WE, WE SET ASIDE A TOTAL AMOUNT OF MONEY TO BUILD THE THING TURNKEY AND OPEN.
BUT THE CONTRACT FOR THE DESIGN BILL FOR HENDERSON WAS NOT ALL OF THAT MONEY.
IT WAS THE BASIC, I THINK WHAT MY POINT IS, I JUST, YOU KNOW, TO PI BACK PIGGYBACK ON THAT, I WOULD BE CURIOUS TO SEE THE, THE DOOR PRICE, TOTAL COST OF OWNERSHIP.
IT'S LIKE YOU GO GET A SET OF TIRES AND THEY SAY, WELL, TIRES BE $500 THEN DOLLAR FOR TIRE STEM AND THE LEAD WEIGHTS AND SO FORTH.
AND NEXT THING YOU KNOW, YOU'RE $5 TIRES IS A THOUSAND DOLLARS AT THE DOOR.
I THINK WE, I THINK WE'VE BEATEN THE HORSE.
THE MOTION MADE BY MR. GREEN IS TO APPROVE THE CONSENT CALENDAR AS SUBMITTED.
[OPEN DISCUSSION]
IT'S OPEN DISCUSSION.AND WAL, WOULD YOU LIKE TO GO FIRST IF YOU HAVE ANYTHING? I JUST HAVE ONE COMMENT AND THAT, UM, COUPLE OF WEEKS AGO, I COMMUNICATED TO THE, UH, ADMINISTRATOR ABOUT MY CONCERN ABOUT THE ELECTION ON THE 8TH OF NOVEMBER.
AND I, UM, ASKED THE ADMINISTRATOR TO TALK TO WAL OR REGISTRAR, GIVE US A FEEL FOR, YOU KNOW, WHAT HAVE WE DONE TO MAKE, TO SATISFY OURSELVES THAT WE'RE NOT GONNA BE PART OF THE FRAUD THAT OCCUR, OCCURRED TWO YEARS AGO.
AND I THINK YOU PROBABLY ALL HAVE AN OPPORTUNITY TO WASH 2000 MULES AND SAW SOME OF THE MOST RIDICULOUS WAYS THAT THE FRAUD TOOK PLACE.
AND YOU HAD SHAKE YOUR HEAD SAY, HOW THE HELL WAS THAT ALLOWED TO OCCUR? AND I'M PARTICULARLY TALKING ABOUT STUFFING BALLOT BOXES, STUFFING BALLOT BOXES THAT TURNED INTO VOTES AND SO FORTH.
THERE'S A COUPLE OF MESSAGES THAT I THINK YOU ALL GOT.
HOPE YOU, YOU ALL GOT THAT TALKED ABOUT, UH, THE INITIAL TRAINING OF THE, OF THE FOLKS THAT THE, AT THE PRECINCTS THAT MONITOR THE, THE ELECTION TALKED ABOUT VOTER.
ID TALKED ABOUT, UH, A MYRIAD OF THINGS.
UM, BUT, YOU KNOW, WE'RE, WE'RE GONNA, IF I WAS THE BAD GUY, I'D SAY IT WORKS SO WELL TWO YEARS AGO.
WHY NOT JUST DO THE SAME DAMN THING AND SEE HOW MANY OF THESE STATES AND JURISDICTIONS ARE SLEEPING AS A SWITCH? I DON'T KNOW IF ANY OF YOU ARE AS CONCERNED AS I AM, BUT I'M JUST SAYING, HEY, THIS IS A VERY IMPORTANT ELECTION IN LESS THAN WELL ABOUT A MONTH NOW.
AND I'M JUST HOPING THAT WE'VE GOT THINGS IN PLACE TO INCLUDE, UM, VOTING MACHINE VALIDATION.
THE VOTING MACHINES TWO YEARS AGO, AS I UNDERSTAND IT, WERE VERY MANIPULATIVE IN TERMS OF TAKING INPUT AND GENERATING WHATEVER THE HELL THEY WANTED THEM TO GENERATE.
I COULD BE WRONG ON THAT, BUT, UH, I DON'T THINK THE I WORK PAPER BALLOT ACCOUNTABILITY.
WELL, THE, THE STATE DICTATES A A LOT OF WHAT, WHAT'S, WHAT'S HAPPENING DOWN AT THE JURISDICTIONAL LEVEL, WHETHER ARE CITIES OR COUNTIES, UM, IDEA VOTERS.
I THINK WE, A LOT OF STATES DON'T EVEN MAKE VOTERS IDENTIFY THEMSELVES.
SO WE'LL PUT OUT A COUPLE OF OF EMAILS, TAKE A LOOK AT THEM, SEE IF YOU CAN THINK OF ANYTHING THAT THERE'S A GAP HERE THAT PERHAPS, UH, WE WOULD'VE HAVE HIM ADDRESS BETWEEN NOW AND A COUPLE WEEKS FROM NOW.
BUT, YOU KNOW, THIS IS A, EVERYTHING I READ ON THE NEWS, AND IT'S, IT'S A VERY IMPORTANT EIGHT NOVEMBER EVENT THAT'S GONNA TAKE PLACE THAT IF THE SAME FRAUD TAKES PLACE AGAIN, WE ARE DOOMED.
ALL RIGHT? BUT AGAIN, I JUST WANNA MAKE SURE, I WANNA FEEL SOMEWHAT MORE SATISFIED THAN OTHERWISE GOING INTO THIS THING BLINDLY.
I READ THE EMAILS THAT WALT SENT YOU, AND I THINK HE'S COVERED ALL YOUR POINTS VERY WELL.
WELL, I WANT, I WANT THIS BOARD HERE TO KIND OF CON CONCUR WITH THAT AS WELL.
UM, BUT ANYWAY, THAT'S, THAT'S MY COMMENT.
UH, CHAD, DO YOU HAVE ANYTHING YOU'D LIKE TO SAY? YES, UH, THIS PAST WEEKEND, UH, I WENT UP TO THE VIRGINIA MUNICIPAL LEAGUE, UH, CONFERENCE UP IN RICHMOND.
UH, AND YOUR COUNTY WAS FEATURED, UH, THERE, UH, WITH THEIR DRONE TEAM.
AND TERRY HALL, UH, DID A NICE JOB.
UH, KENNY ELLIOT, UH, DID A SUPER JOB WITH THE PRESENTATION PRESENTED, UH, HOW OUR DRONE TEAM, UH, IS OUT THERE SAVING LIVES AND PROTECTING, UH, OUR FIRST
[01:55:01]
RESPONDERS.OVER A HUNDRED PEOPLE WERE AT THE PRESENTATION.
AND, UH, WE HAVE A GREAT, GREAT COUNTY, UH, COMPARED TO ALL THE OTHER TOWNS AND CITIES.
SO WANTED TO THANK, UH, EVERYBODY INVOLVED IN THAT.
AND MR. MORGAN, YOU, YOU DO A FINE JOB WITH THAT.
STEVE, YOU HAVE ANYTHING YOU'D LIKE? YEAH, SO, YOU KNOW, KIND OF LIKE ASSOCIATED WITH THAT, THE FIRELIGHT SAFETIES AND THE SERVICE DEPARTMENT HAD A GREAT, I CALL A SHOW UNTIL NIGHT AT THE BETHEL BAPTIST CHURCH LAST WEDNESDAY, AND HAD BROUGHT A LOT OF GOOD, GOOD EQUIPMENT OUT, GOOD PEOPLE OUT, HAVE A LOT OF GOOD CONVERSATIONS THERE.
SO I HOPE PEOPLE HAD A CHANCE TO TAKE, UH, TAKE ADVANTAGE OF THAT, UH, THAT EVENING.
AND ANOTHER THING I WAS CURIOUS ABOUT, SOME EMPIRICAL FEEDBACK OR OBSERVATIONS ON OUR, OUR, UM, THE SUMMER BILL CALCULATOR.
IT'S BEEN ABOUT, ABOUT BEEN OUT ABOUT A MONTH.
DO WE HAVE ANY USAGE, UM, FEELING ON THAT? I, I'LL HAVE TO GET BACK TO YOU.
I DON'T KNOW THAT WE SET UP A, A SYSTEM THAT, TO COUNT HOW MANY PEOPLE USED IT WHEN WE SET IT UP, WE TESTED, UM, A CERTAIN NUMBER OF CASES AND IT ALL CAME OUT WITHIN A, YOU KNOW, A FRACTION OF, OF WHAT WE THOUGHT WAS THE RIGHT ANSWER.
UM, SO I, I REALLY DON'T THINK IT'S BEEN TOO WIDELY USED.
UM, THE BILLS WILL BE GOING OUT THE THIRD WEEK OF OCTOBER.
AND SO OUR, OUR INTENT WAS TO LEAVE THE CALCULATOR UP UNTIL THE BILLS WENT BILL, UH, BECAUSE, UH, ONCE YOU GET THE BILL, CHANCES ARE IT'LL BE A FEW CENTS DIFFERENT THAN WHAT'S IN THE CALCULATOR.
AND WE WERE A LITTLE BIT WORRIED THAT THAT MIGHT OVERWHELM THE TREASURER'S OFFICE.
UM, BUT OUR BELIEF, CERTAINLY, MY BELIEF IS MOST PEOPLE ARE GONNA BE PLEASED WITH THEIR BILL.
I MEAN, I THINK THAT'S, THAT'S A GREAT TOOL TO HAVE ON OUR, ON OUR WEBSITE, GIVE PEOPLE WE DO IT.
UH, BUT IT'S, IT'S GREAT TO HAVE THAT OUT THERE TO GIVE PEOPLE SOME INSIGHT ON WHAT, WHAT THEY SHOULD EXPECT, AND ALSO TO COMPARE NOTES LATER ON.
SO IF YOU, IF YOU REALLY CARE, YOU CAN GET ON THERE AND FIGURE IT OUT PRETTY MUCH TO THE DIAL ANYWAY.
THANKS TO, YEAH, I WANTED TO, UM, UH, KIND OF GIVE YOU GOOD REAL QUICK UPDATE.
UH, I'VE MENTIONED SOME OF IT ABOUT THIS, UM, UH, PRESS REDUCING STATION THAT, UH, THEY'RE BUILDING IN THE TANK.
UM, I'M, UH, COUNTY ADMINISTRATOR AND I MET WITH, UH, HRSD STAFF, UH, GIVE US AN UPDATE TO THEIR, AS THEY'RE GETTING READY FOR THEIR 90% PRESENTATION TO THE OPEN HOUSE, TO THE PUBLIC COURT, MORE THAN LIKELY BE A TA HIGH SCHOOL, BUT WE'LL, WE'LL SEE.
AND THEN MORE OF ANNOUNCEMENT ON THAT.
BUT THE, THE, UM, JUST TO REFRESH YOUR, YOUR MEMORY ON, THAT'S GONNA BE, UM, ON THE OPPOSITE SIDE OF THE POWER LINE FROM TAB HIGH SCHOOL, BUT IT'S GONNA BE BACKING ON THAT PROPERTY IS ABOUT, UH, ABOUT FIVE ACRES THEY'RE GONNA USE OF ABOUT A 26 ACRE, UH, PIECE OF LAND.
AND, UM, INSTEAD OF HAVING THOSE TWO, UH, 2.5 MILLION GALLON TANKS, THEY CAN ONLY HAVE, HAVE ONE TANK NOW BECAUSE THE COST THIS HAS GOTTEN OUTTA SIGHT, UH, TANKS WILL BE ABOUT 40 OR 35 FEET HIGH AND ABOUT A HUNDRED, A HUNDRED, MAYBE 10 FEET WIDE, SOMETHING LIKE THAT.
AND THEY'VE GOT NEW RENDERINGS AND ALL THAT.
AND THEY'VE BEEN WORKING WITH, UH, TRYING TO, UH, UH, ADDRESS SOME OF THE UGLINESS THAT COMES WITH A, WITH A SEWER TANK.
UH, THE SYSTEM IN THERE, THE PRESSURE REDUCING STATION IS ABOUT 2,500, UH, SQUARE FOOT BUILDING.
A LOT OF IT'S GONNA BE DOWN UNDERGROUND.
AND THAT'S WHERE THE, ALL THE WELLS, UM, UH, THE, WELL, THE WELLS THERE, BUT ALL THE MAIN SEWER LINES COME TOGETHER, UM, IN THE REGION.
THEY KIND OF COME THROUGH THAT POINT, AND THAT'S WHY THEY'RE BUILDING IT THERE.
AND THEY DID EXPLORE LOOKING AT OTHER PIECES OF PROPERTY AND, AND IT JUST GOT TO BE WHERE IT WAS JUST MORE COST, MORE DISRUPTION TO THE COMMUNITY.
NOW, SO THE QUESTION COMES UP IS, I MEAN, IT'S WHY, YOU KNOW, WHY ARE YOU GONNA DO THIS? UM, AND THEY TALK ABOUT THE PRESSURE REDUCING STATION AND, AND THE TANK.
AND WHAT IS DESIGNED TO DO IS AS THE SEWER, THESE MAIN SEWER LINES COME IN, THEY'RE UNDER PRESSURE, OKAY? THE SEWAGES RAW SEWAGE UNDER PRESSURE, UH, COMES OFF OUR PUMP STATIONS AND PUMP STATIONS AND PROBABLY, UH, LANGLEY AND, AND NEWPORT NEWS AND OTHER PLACES THEY, AT WHAT HAPPENS, THESE LINES COME TOGETHER AT THE SPOT, AND THEN THEY DIVERT THE SEWAGE, UH, IN VARIOUS WAYS OVER TO YORKTOWN OR YORK RIVER, UH, STATION OR OVER THE JAMES RIVER STATION, OKAY.
AND THEN WHAT HAPPENS IS, BECAUSE OF USAGE, YOU KNOW, LIKE IN THE MORNING EVERYBODY GETS UP AND THEY'RE, YOU KNOW, BATHING OR SHOWERING OR DO WHATEVER, WASHING DISHES
[02:00:01]
AND EVERYTHING THAT IT BUILDS UP PRESSURE INTO THE, INTO THE, UH, INTO THE SEWER SYSTEM.AND WHEN IT RAINS, LIKE WE HAD THIS BIG RAINSTORM, THERE'S STILL WATER COMES INTO THE SYSTEM AND ALL THAT PRESSURE BUILDS UP.
AND WHAT IT DOES IS IT PUSHES THE SYSTEM, UH, OUT TO THESE PUMP OUT TO THESE, UH, SEWER STATIONS.
AND IF THEY BECOME OVERWHELMED, IT PUSHES IT RIGHT INTO THE RIVER UNTREATED SEWAGE.
OKAY? UH, THIS HAS HAPPENED, UH, FOR HIS IN HISTORY HERE.
UH, I REMEMBER THE BIG ONE TALKING ABOUT WHAT HAPPENED UP IN, UH, RICHMOND DOWN IN THE JAMES RIVER, UH, DUMPED AT JUST, JUST HUNDREDS OF THOUSANDS OF GALLONS OF RAW SEWAGE RIGHT INTO JAMES RIVER.
WELL, GUESS WHERE THAT FLOWS? IT FLOWS DOWN HERE, RIGHT? SO THAT'S WHY THEY'RE DOING IT.
AND THEY'RE GONNA SPEND, LIKE I SAID, SOMEWHERE IN NEIGHBORHOOD AROUND $34 MILLION TO BUILD THIS THING.
NOW, THERE'S OTHER PARTS TO IT I'M NOT GONNA TALK ABOUT.
BUT, UH, THIS WEEKEND WHAT WE HAD IS A SEWER BLOWOUT AT, UH, IN, IN RUNNING MAN.
OKAY? AND WE HAD OUR PUMP STATION, AND RIGHT NEXT TO THE PUMP STATION IS WHERE THE CONNECTION OF THE, UM, THE, UH, PRESSURE LINE FROM HRS D CONNECTS TO OUR, OUR PUMP.
RIGHT? AND YOU SEE THESE PUMP STATIONS ALL AROUND.
WELL, WHEN THE PUMP STAGE, WHEN THAT LINE BLEW OUT, WHAT IT DIDN'T DO, IT DIDN'T SET ANY ALARMS OFF ON OUR SIDE.
OKAY? AND SO THIS BEFORE, WE DON'T KNOW WHEN IT OCCURRED, WE GOTTA GUESS, BUT IT BLEW A PRETTY GOOD SIZE HOLE INTO THE MAIN PRESSURE LINE.
AND REMEMBER THIS ALL UNDER PRESSURE.
SO THE STORM WAS, STORM WAS COMING DOWN, IT WAS JUST, YOU KNOW, A LOT OF RAIN AND EVERYTHING, WIND BLOWING, ALL THIS.
WELL, GUESS WHAT? SOMEWHERE IN THE MORNING THIS THING BLEW OUT, AND NOW RAW SEWAGE IS BEING DUMPED OUT RIGHT ONTO THE STREET, ALL IN, DOWN INTO THE DITCHES, GOING INTO THE BMPS GOING, I MEAN, IT WAS A MESS.
AND SO WE GOT THE CALL, OUR CREW RAN OUT THERE AND GO, YOU KNOW, WHY, WHY IS THIS HAPPENING? AND YOU CAN, IT WAS ONE PERSON TOLD ME YOU SAW GEER BLOWING UP OUT OF THE GROUND WHERE THE RAW SEWER WAS COMING OUT.
UM, YOU DIDN'T GO AND CHECK ON A PERSON? I DID.
I WENT DOWN THERE, MAN, I WENT DOWN, I GOTTA SAY WHAT'S GOING ON IN THE NEIGHBORHOOD, AND I, I GOT, I APOLOGIZE TO OUR CREW.
I SAID, SORRY, I'M NOT GETTING OUTTA MY CAR
AND SO I GO, WHAT'S NEXT? LET ME GO DOWN AND CHECK ALL THE WAY DOWN THE OTHER END OF THE STREET.
AND THIS IS, THIS WAS ABOUT THE 10TH OF A MILE OR SO WHEN WENT DOWN CURVE BACK, AND I WENT OVER TO THE BMPS, AND THEY'RE BLACK WITH RAW SEWAGE, OKAY? SO OUR CREWS WERE DOWN THERE TRYING TO DO WHAT THEY COULD DO, BUT THEY COULDN'T TURN THE VALVE OFF.
REASON IT BELONGS TO HRS D HRSD CREWS HAD TO GET THERE.
AND WHEN WE CALL 'EM, IT TOOK 'EM OVER TWO HOURS MORE TO GET THERE.
AND SO, AGAIN, ROSS SEWAGE UNDER PRESSURE IS BUBBLING NOW OUT OF THE GROUND, AND IT'S JUST KEEP GOING.
SO I'M WARNING PEOPLE DON'T JOG DOWN THIS WAY.
YOU, YOU'RE NOT, YOU WANNA BE THROWING YOUR SHOES AWAY IF YOU DO.
SO PEOPLE GOT, HOW FAR FROM YOUR HOUSE WAS TO BLOWOUT? IT WAS, OH, IT WAS, UH, IT WAS A COMPLETELY DIFFERENT NEIGHBORHOOD.
IT WASN'T EVEN CLOSE TO MY HOUSE AT ALL.
BUT YOU COULD SMELL US ALL UP AND DOWN.
THE POINT IS THIS IS WHAT THE PRESSURE STATION IS SUPPOSED TO DO, REGULATE THE PRESSURE ON THESE PIPES.
AND, AND ONE OF THE THINGS THEY ADVERTISE WHEN THEY TALKED ABOUT IS PUTTING US IN, THEY SHOWED A PICTURE OF A GUYS ARE COMING OUT OF A GROUND BY A HOUSE THAT THE SAME LIST HAVE BEEN ABOUT 10, 15 FEET HIGH.
AND SO THIS IS WHY WE'RE DOING THIS.
THIS IS PART OVER THE CONSENT DEGREE BY THE COURTS THAT SAYS THAT WE GOTTA KEEP FROM DUMPING THIS STUFF INTO THE SYSTEM.
WHILE OUR CREW WENT DOWN THERE, PUBLIC SUR PUBLIC WORKS DOWN THERE WITH A, A TRUCK AND THEY'RE SUCKING THIS STUFF OFF THE ROAD.
THEY PUT DOWN LIME TO KILL, TRY TO KILL THE DISEASE AND ALL, I MEAN, THE, THE NEUTRALIZE THE DISEASE, BUT THE BMP STUFF WAS BEING PUMPED INTO THE STREAMS. OKAY? NOT THAT, YOU KNOW, AND SO IT'S GOING INTO THE STREAMS AND THEY DID WHAT THEY COULD, BUT RAW SEWAGE MAKES IT IN THERE.
NOW, THIS IS NOT AS BAD, I DON'T THINK, IS A LAKESIDE DRIVE BLOWOUT WHEN THE, WHEN A BACKHOE CUT TO THE LINE IN HALF AND THEY DUMPED ABOUT 250,000 GALLONS OF RAW SEWAGE INTO THE, THE, UH, PACOIN RIVER.
BUT AGAIN, THIS WAS A PRIME EXAMPLE OF WHY THEY'RE GONNA DO THAT.
NOW, WHETHER IT WOULD'VE STOPPED IT, I DON'T KNOW.
IT LOOKS LIKE THE, THERE'S SULFURIC ACID IN IT, BUT I JUST WANTED LET YOU KNOW, IT WAS JUST TO WATCH THIS THING FIRSTHAND.
AND I FEEL REALLY SORRY FOR THE FOLKS THAT LIVED AROUND HERE, BUT I THINK THE CREW DID A GREAT JOB TRYING TO CLEAN IT UP AS BEST THEY COULD THAT WAS WILLING TO BRING IT OUT.
WELL, WELL, IT ENDS WELL, I GUESS I, HOPEFULLY THEY GET IT ALL CLEANED UP AND THAT'S, THAT'S A HORRIBLE JOB TO HAVE TO TAKE CARE OF.
YOU'RE DOING, UM, NOT ON MY SHOES.
[02:05:01]
ON ANOTHER SUBJECT, WAL, I THINK YOU'D BE HAPPY TO HEAR THIS.
I TOLD YOU ALL THAT WE WERE MEETING WITH THE, THE PARK SERVICE.
AND WE HAD A VERY, WE HAD VERY NICE MEETING, UH, THEIR STAFF AND OUR STAFF GOT TOGETHER.
UH, ONE THING I THINK YOU'LL BE PLEASED TO KNOW, WALT, IS THAT, UH, OUR PARK SERVICE IS GETTING A GRANT, UH, WHAT IS IT? 113 MILLION HAS BEEN APPROPRIATED FOR THE GREAT FROM THE GREAT AMERICAN OUTDOORS ACT.
AND THAT MONEY'S GOING TO GO TOWARDS RENOVATING THE PARKWAY.
AND NOT ONLY THAT IS, IT'S GONNA START IN YORKTOWN, NOT JAMESTOWN, BUT GONNA START IN YORKTOWN.
SO AT LEAST WE'LL GET THAT TAKEN CARE OF.
AND THEY REALLY WANNA GET IT ALL DONE BY, UH, UH, THE 250TH ANNIVERSARY OF SIGNING THE DECLARATION OF INDEPENDENCE FOR.
SO THEY HOPE TO GET IT COMPLETED BY 2026.
I COULD NOT PIN THEM DOWN AS TO WHEN THEY WERE GONNA START WHAT THEY'RE DOING.
THERE'S, RIGHT NOW THEY'RE SOLICITING COMPANIES FOR, YOU KNOW, BID BIDS TO DO THE WORK ON THE, ON THE PARKWAY.
BUT IT WAS A VERY GOOD MEETING.
AND ONE OF THE THINGS WE'VE DECIDED TO DO IS TO HAVE QUARTERLY MEETINGS BETWEEN THE COUNTY AND THE PARK SERVICE, BECAUSE THERE'S SO MANY DIFFERENT THINGS THAT WE CAN WORK TOGETHER ON AND, AND HELP EACH OTHER OUT ON.
WE'RE LOOKING FOR ADDITIONAL DEMAND OPPORTUNITIES FOR YORKTOWN AND PARK SERVICE WILL LOOK FOR MORE GRANTS ON THEIR PART AND SEE IF PERHAPS IF WE WORKED TOGETHER WITH A JOINT APPLICATION, IT WOULD BE, MIGHT EVEN BE MORE EFFECTIVE.
AND SOMETIMES, SO AT ANY RATE, THAT'S WHAT WE'RE DOING.
AND I THINK IT WAS A, IT WAS A GOOD MEETING.
IT WAS A LONG MEETING, AND, BUT I THINK WE ALL CAME AWAY FROM IT FEELING RATHER, IT WAS ABOUT TIME THAT WE HAD DONE IT.
WE WAITED TO A LONG, IF YOU WERE DOING IT GOING BACK YEARS AGO, THAT SUPERINTENDENT USED TO BE PART OF A COUPLE OF COMMITTEES THAT WE HAVE.
SO WE WERE ALWAYS INTERACTING WITH THE, WHOEVER THE SUPERINTENDENT WAS.
THAT'S, BUT, BUT, BUT I, I REALLY THINK THAT JERRY MAR, WHO IS THE NEW SUPERINTENDENT, UM, FEMALE OR FEMALE, FEMALE FEMALE, FEMALE FEMALE, IS INTERESTED, VERY INTERESTED IN WHAT THE JOB IS.
AND OF COURSE, THERE'S ALWAYS MONEY IS THE, IS THE ROOT OF ALL EVIL.
I OPPOSED LOCAL AND LOCAL AUTHORITY AND LOCAL, BACK THERE AT LOCAL AUTHORITY.
BUT THIS WAS THE POINT THAT I DIDN'T REALIZE IS, YOU KNOW, THAT THEY, THEY CHARGE ADMISSION CHARGES FOR PARKING AND SO FORTH AND SO ON.
BUT THAT MONEY THAT THEY GET COMES BACK INTO THEIR COFFERS.
IT DOESN'T GO TO THE, TO THE FEDERAL GOVERNMENT.
THEY HAVE A BUDGET FROM THE FEDERAL GOVERNMENT, AND ANY MONEY THAT THEY RAISE HERE STAYS HERE.
SO THEY CAN USE THAT MONEY FOR UPGRADES AND SO FORTH.
AND SO I HOPE PEOPLE UNDERSTAND THAT, YOU KNOW, THE MONEY THAT THEY PAY TO, TO PARK AT THE, UH, PARKS OR THE MONEY THEY PAY FOR ADMISSIONS STAYS HERE.
SO IT, IT'S A GOOD INVESTMENT FOR EVERYBODY, I HOPE.
IF THAT'S, THEY ACTUALLY DO, BUT ANYWAY, SHAILA, DID THEY TALK ABOUT WHAT THAT RENOVATION OF THE PARKWAY WOULD LOOK LIKE, WHAT THEY'RE GONNA DO? NO, THEY DIDN'T.
MY GENERAL UNDERSTANDING IS THEY'RE GONNA REBUILD THE ROAD, THE ROAD, IT'S GONNA LOOK THE SAME.
UH, LEVEL, THE, THE, I THINK THE FOUR YEAR TIMEFRAME, THEIR GOAL WAS THE WHOLE THING.
BUT THE GOOD NEWS IS IT SOUNDS LIKE ON THE FRONT END OF THAT FOUR YEAR TIMEFRAME WILL BE THE SECTION BETWEEN WILLIAMSBURG AND YOURTOWN.
THAT'S, SO MAYBE COUPLE YEARS.
[CLOSED MEETING ]
WITH THAT, UH, MR. SHEPA, WOULD YOU TAKE US INTO CLOSE MEETING? YES.UM, IN ACCORDANCE WITH SECTION 2.2 DASH 37 11 A, ONE OF THE CODE OF VIRGINIA, I MOVED THAT THE BOARD SUPERVISORS CONVENE IN A CLOSED MEETING, CONSIDER A PERSONNEL MATTERS INVOLVING APPOINTMENT OF INDIVIDUALS, BOARD INDIVIDUAL BOARD'S.
SO WE'LL START AND LET ME SEE.
I DON'T HAVE THE THINGS OF IT, BUT I NO SAW IT.
GOT THE GUYS THINK I HANDED OUT.
I DON'T HAVE KAYLA GONNA HAND IT OUT.
OH, THIS JILL, DID THEY SAY ANYTHING.