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SAN DIEGO (CNS) - San Diego's utilities future remains undecided after the City Council debated terms for a franchise agreement for its electric and natural gas provider this week.The council was asked Thursday to agree on the terms it was looking for in the agreement for one of the city's most valuable assets, valued at more than .2 billion.San Diego Gas & Electric has been the sole provider of natural gas and electric utility services for San Diego since 1920. The current franchise agreement, finalized in 1970, is set to expire Jan. 17, 2021. San Diego is California's largest city to have franchise agreements with its utilities.The terms, had they been approved Thursday, would have opened the bidding process for any interested entities to bid on the franchise agreement. They were presented to the council for input and did not technically require council approval.In the coming weeks, the city will release the final terms of the bid document, which will include input received from the public and the council, and the bidding process will begin, officials with Mayor Kevin Faulconer's office told City News Service on Saturday.Once bidding is concluded and a franchise is awarded, the agreement will go to the full council, requiring two-thirds approval.Howard Golub, a consultant for JVJ Pacific Consulting, which the city hired to analyze its needs, recommended the minimum bid in the terms should be million -- low enough to encourage bids but not so low the city and its residents are suffocated by high rates and later surcharges with no money back to show for it, he said."This is the floor, not the ceiling," Golub said.Golub also recommended franchise fees of 3.5% for natural gas and 3% for electric and a 20-year term with the bidder the city chooses.SDG&E is owned by Sempra Energy, an international corporation based in San Diego. Warren Buffett-owned Berkshire Hathaway has expressed interest in the bidding process.An initial proposal by Council President Georgette Gomez was rejected 6-3. It included a provision similar to that of Chula Vista, with a 10-year deal with an automatic renewal if the franchisee had been a "good partner."An amendment by Councilwoman Monica Montgomery raised the minimum bid from the 1% of total value of million to 5%, or 0 million. It also included a climate equity fund and the provision to make the highest bidder subject to collective bargaining from employees who were working for SDG&E -- in case that company does not win the bid."We can't be working toward a just climate future if our partner undermines that," Gomez said.Councilwoman Jennifer Campbell then proposed terms to accept all of JVJ's recommendations with the option to "explore" the climate equity fund. This failed 5-4, with multiple council members switching votes during discussion as amendments were added and removed.Councilman Chris Cate asked for a provision to see and consider all bids for the franchise agreement regardless of the bid offered -- dependent on how closely each bidder met the city's terms.Councilwoman Vivian Moreno said the lack of concrete plan to establish and fund the climate equity fund -- which she said would be funded by the minimum bid and would add "green" elements to portions of the city often underserved -- was automatically unacceptable for her.The council's lack of consensus prompted some speculation about the possibility of municipalizing the city's gas and electric services."I recommend a franchise agreement first," Golub said. "And if that's not feasible, move to a publicly owned utility."High interest rates in 1970 prevented the city from seriously examining that route, but much lower interest rates now make a public-owned utility more feasible, Golub said.According to valuations by business process management company NewGen, the city could buy out SDG&E's infrastructure at a fair market rate of just over billion.According to Golub's recommendations, the city should not do what it did in 1970 -- accept a franchise agreement it wasn't happy with because SDG&E was the sole bidder.More than 80 members of the public called in to the meeting to express support for a franchise renewal of SDG&E or for municipalization.The callers were fairly evenly split, with many of the calls in support of extending the existing franchise agreement with SDG&E coming from employees with the company or those representing the International Brotherhood of Electrical Workers local representing SDG&E workers.They claimed maintaining jobs, 100 years of history with the city and "keeping it local" as reasons to renew the franchise as soon as possible for 20 years or more.Opponents to moving any franchise agreement forward claimed SDG&E's perceived lack of reliability, its high utility costs and its parent company's involvement in fracking are all reasons to avoid franchising with SDG&E.Some of them made impassioned pleas to municipalize the city's gas and electric, essentially making the city take on the burden of providing the utilities.One man urged the council to vote no and do further study on the potential of municipalization and the ramifications of not doing so."When this goes sideways, and it will, you can't say you didn't know," he said. 5295
SAN DIEGO (CNS) - The San Diego City Council rejected an emergency ordinance Tuesday that would have banned motorized scooters on boardwalks in Mission Beach, Pacific Beach, Mission Bay and La Jolla. State law already bans motorized scooters from sidewalks but doesn't mention boardwalks. The vehicles have become increasingly common in San Diego since they were introduced in February by scooter-sharing companies Bird and LimeBike. Improper usage and excessive speeding has led to injuries, especially where scooters are in close proximity to pedestrians, prompting Councilwoman Lorie 622
SAN DIEGO (CNS) - The San Diego City Council voted Monday to place two ballot measures on the March 2020 ballot, including a hotel tax hike that would fund a convention center expansion, homeless services and infrastructure improvements.The tax increase proposed by San Diego Mayor Kevin Faulconer would raise the city's transient occupancy tax from 10.5% to as high as 15.75% in certain areas of the city, which supporters argue would reap an estimated billion over 42 years.The funding would allow the city to purchase a parcel of land adjacent to the convention center that is currently owned by Fifth Avenue Landing. Once it purchases the land, the city would expand the convention center by roughly 400,000 square feet, from roughly 800,000 square feet to about 1.2 million square feet.RELATED: Hotel tax increase proposed for San DiegoThe land cost is expected to be roughly million, part of an estimated allocation of .5 billion for the purchase and convention center upkeep and marketing. Roughly .8 billion of the initiative's remaining revenue would fund the city's homeless services and shelters, while 1 million would be allocated for repairs to the city's network of roads."This is a measure that is being supported by the lodging industry and is willing to tax its own customers to ... help support homelessness in our community and to help with our infrastructure," San Diego Tourism Authority COO Kerri Kapich said.Voter rights groups and several council members urged that the measure be placed on the November ballot in lieu of the March primary ballot, when turnout is expected to be lower. The council ended up voting 5-4 in favor of placing the measure on the March ballot to ensure it goes in front of voters as soon as possible.RELATED: San Diego city council approves .9 billion homelessness planThe council also unanimously voted to place a measure authored by City Councilman Scott Sherman on the March ballot that would shift the responsibility for the city auditor appointment process from the mayor's office to the council's Audit Committee. Currently, the mayor appoints a city auditor candidate to serve a 10-year term."The city auditor is vital to holding city administration accountable and ensuring taxpayer dollars are spent properly," Sherman said in a statement. "The administration shouldn't be in charge of choosing who is overseeing the administration. This ballot measure will help ensure this important position is truly independent."Under the proposed measure, the Audit Committee would recruit and choose three candidates for the city auditor position. The council would then choose one of the three candidates to serve as the city auditor for a pair of five-year terms.Since the position was established in 2009, the city has only had one official city auditor, Eduardo Luna, who served nearly all of his term before leaving for a similar position with the city of Beverley Hills in October 2018.Sherman, the Audit Committee chair, proposed the measure after Faulconer appointed DeeDee Alari, a deputy director in the city treasurer's office, to the position in July. Alari has yet to be confirmed. 3167
SAN DIEGO (CNS) - The Bengal tiger cub rescued during a smuggling attempt at the US-Mexico border was joined Monday by a Sumatran tiger cub from the National Zoo in Washington, D.C.The Bengal tiger was discovered last month at the Otay Mesa border crossing last month and taken to the San Diego Zoo Safari Park for care.RELATED: Smuggled tiger cub found at US-Mexico borderThe Sumatran tiger that joined the cub in San Diego is nine-weeks-old. He has been fed by humans since last month because his mother became aggressive toward him. Zoo personnel said the cub would "chuff" in a friendly tiger greeting but his mother, Damai, would not respond.Animal care staff from the Safari Park were on hand at San Diego International Airport to meet the cub and the keepers upon their arrival. The young tiger was immediately transported to the Safari Park’s Ione and Paul Harter Animal Care Center, where he will continue to receive the care he needs.“We are beyond thrilled to welcome this tiger cub to the Safari Park,” said Andy Blue, associate curator of mammals at the San Diego Zoo Safari Park. “His keepers reported he did extremely well during the flight — slept most of the way. Our priority now is to ensure he continues to thrive and acclimates well to his new surroundings.” 1302
SAN DIEGO (CNS) -- The San Diego City Council unanimously approved the creation Tuesday of an emergency rental assistance program tied to the ongoing coronavirus pandemic, which will utilize .1 million in federal COVID-19 funds to support thousands of low-income residents experiencing financial hardships.The COVID-19 Emergency Rental Assistance Program will provide up to ,000 per household, assisting around 3,500 households total, according to the San Diego Housing Commission.Applications will be available through the housing commission's website no later than July 20."Our rental assistance program cleared another hurdle today, and in a matter of weeks over million will be directly available to thousands of renters struggling to navigate the financial challenges of the COVID pandemic," said City Councilman Chris Ward, who proposed the program's creation.Ward initially sought to allocate .9 million of the city's 8.5 million federal CARES Act funding for the program, but that amount was pared down following disagreement from other council members."The current .1 million is a start to what I hope is continued relief for residents, especially since this program gives us a mechanism to add funds as they become available," Ward said.To be eligible for the program, households:-- must be located within the city of San Diego-- have a household income at or below 60% of the San Diego Area Median Income-- must not be receiving any rental subsidies-- must not be a tenant of a property owned or managed by the housing commission-- must not have savings to meet their financial needs-- must have eligible immigration status-- must have experienced hardships directly related to COVID-19Priority will be given to families with children and households with people age 62 and older. Itandehui Jiménez, who lives in Linda Vista, said the time has been particularly hard on her children. She is a month and a half late on her ,800 rent. "Right now there's no happy moments, because we can't go out," she said. "We're looking for jobs, stressed, looking to do something to get money for the rent."However, disbursement of funds will otherwise be chosen via a random selection process, according to the housing commission."This program will provide some of the stability these families -- and their landlords-- need as San Diego gradually emerges from this health crisis. The San Diego Housing Commission is pleased to partner with the City of San Diego to implement this program, which builds upon our successful track record of providing housing assistance to families in need," SDHC President and CEO Richard C. Gentry said.The program's creation came on the same day the City Council extended an eviction moratorium until Sept. 30, with the intention of providing relief to those economically impacted by the pandemic.More information regarding the rental assistance program and eviction moratorium is available at https://www.sdhc.org/about-us/coronavirus-covid-19. 3002