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>>HERE WE GO. I'M [INAUDIBLE],

[00:00:03]

I'M WITH THE CENTER FOR ORGANIZATION EFFECTIVENESS AND I'M EXCITED TO BE BACK HERE WITH YOU ALL.

WE WERE HERE LAST TIME FOR THIS CONVERSATION ON MARCH 16TH.

THIS IS REALLY A CONTINUATION AS PART OF THE FIVE-YEAR STRATEGIC PLAN WORK [INAUDIBLE].

IT CONNECTS REALLY NICELY TO THAT FIVE-YEAR STRATEGIC PLAN WORK AND THE ONE YEAR ANNUAL BUDGET PROCESS, WHICH WE'RE ACTIVELY DOING THAT STUFF.

IN THAT MARCH 16TH WORKSHOP THE COUNCIL DISCUSSED THAT SOME OF WHAT COMES UP IN THE MIDDLE OF FIVE-YEAR STRATEGIC PLANNING PROCESS IS SOME MESSY ELEMENTS.

PEOPLE DID CALL IT MESSY IN THE MIDDLE SPOT, WHERE WE'RE IDENTIFYING WHETHER THERE COULD BE SOME OPPORTUNITIES THAT WE WANT TO MOVE FORWARD, AND WE'RE WONDERING HOW WE CAN DO THAT WITH BUDGET CONSTRAINTS, HOW WE COULD DO THAT WITH OUR CURRENT SITUATION, WITH OUR CURRENT STAFF, AND IDENTIFYING WHAT THAT WORK MIGHT LOOK LIKE FOR THE NEXT FIVE YEARS.

ONE OF THE ITEMS THAT CAME OUT PART OF THIS WAS AROUND THE HAVING IMPROVEMENT PROJECTS.

TODAY I WANT TO DIVE INTO A DEEPER CONVERSATION ABOUT WHAT THAT MIGHT LOOK LIKE.

THE WAY THAT THE FLOW OF THE DATA IS GOING TO WORK.

WE'RE FIRST GOING TO HAVE SOME CONVERSATION.

YOU'RE HEARING THAT? WE GO ON?

[1. CITY FINANCIAL STATUS AND MUNICIPAL REVENUE STUDY – 1) Receive a report on city finances and the results of research conducted to determine voter interest in potential local revenue enhancement measures to fund essential municipal services and facilities; and 2) Provide feedback and direction to staff. (Staff contact: Laura Rocha, Administrative Services and Jason Haber, City Manager’s Office) ]

[NOISE] FIRST WE'RE GOING TO HAVE SOME CONVERSATION ON ITEM 1 WHICH WILL BE RELATED TO AN UPDATE ON REVENUE STUDY THAT'S BEEN IN THE [INAUDIBLE], WE'LL LET SOME STAFF SPEAK ON THAT AND SOME COMMENTS ABOUT THAT AS WELL AS CONSULTANTS THAT HAD DONE SOME WORK ON THAT.

THEN PEOPLE SHIFT INTO AN OPPORTUNITY FOR PUBLIC COMMENTS ON THAT SPECIFIC ITEM, TO WELCOME PEOPLE OUT FOR THAT ON THE COMMENT PIECE AND THEN WE'LL HAVE AN OPPORTUNITY FOR SOME DIALOGUE AMONGST THE COUNCIL.

WE'LL TAKE A QUICK BREAK AT THAT POINT AND WE'LL MOVE INTO ITEM 2, WHICH WILL BE MORE FOCUSED ON THE CAPITAL IMPROVEMENT PROJECTS AND ADVERTISING THOSE PROJECTS.

AGAIN, WE'LL HAVE SOME PRESENTATIONS FROM STAFF, AN OPPORTUNITY FOR PUBLIC COMMENTS AT POINT ON THAT SPECIFIC ITEM [NOISE] AND THEN WE WILL SHIFT INTO SOME TWO PART CONVERSATION.

THE FIRST PART ANSWERS SOME GENERAL QUESTIONS THAT MAY EXIST ABOUT THE PROJECTS AND WE'LL HAVE OUR PROJECT MANAGERS AND DEPARTMENT DIRECTORS AVAILABLE TO ANSWER [NOISE] THESE QUESTIONS.

THEN WE'LL TAKE ANOTHER PAUSE AND COME BACK TO THE CONVERSATION OF WHAT THE COUNCIL WOULD LIKE TO DO IF THAT LIST WITH CIP PROJECTS WITH ANYTHING.

SPECIFICALLY, ON WHETHER TO ACCELERATE OR DECELERATE ANY PROJECT TIMELINE OR TO ADD OR REMOVE ANY PROJECTS FROM THAT LIST.

THAT'LL BE THE FLOW OF THE DAY, SO WE'LL TAKE THOSE AND THERE'LL BE TWO OPPORTUNITIES FOR PUBLIC COMMENT [NOISE].

I ALSO JUST WANTED TO RECOGNIZE THAT WHEN WE GET TO THE SPECIFIC CONVERSATIONS AROUND THE CIP PROJECTS, THAT YOU'LL HAVE AN OPPORTUNITY FOR ANY COUNCIL MEMBERS TO IDENTIFY ANY CONFLICTS OF INTERESTS AND WE CAN TAKE THAT INTO ACCOUNT AS WE IDENTIFY THE FLOW OF THE CONVERSATION AND FOR THIS AGENDA.

I THINK THAT IS IT FOR ME EXCEPT FOR ONE OTHER REMINDER, [BACKGROUND] [NOISE].

I WANTED TO PULL OUT JUST AS A REMINDER.

[INAUDIBLE] NOVEMBER 2021 JUST AS A FRAMEWORK FOR HOW WE WILL CONTINUE OUR CONVERSATION TODAY AS IT HAPPENED LAST COUNCIL WORKSHOPS.

JUST A REMINDER OF SOME OF THE [NOISE] FEW PRINCIPLES AROUND HOW WE ENGAGE IN RESPECTFUL CONVERSATION, HIGH INTEGRITY, RESPONSIBILITY, AND COMPASSION [INAUDIBLE].

I WILL TURN IT OVER TO PROFESSOR [INAUDIBLE] CHADWICK TO [INAUDIBLE].

>> GREAT. THANK YOU SO MUCH.

GOOD MORNING EVERYONE AND OBVIOUSLY TODAY WE HAVE TWO REALLY IMPORTANT [NOISE] [INAUDIBLE] TO DISCUSS BOTH WITH THE COMMUNITY BUT THEN ALSO WITH OUR COUNCIL.

FIRST HAS TO DO WITH A REVENUE SETTING.

NOW, PREVIOUSLY, THIS WAS INCLUDED IN THE CITY'S BUDGET FOR LAST YEAR, AND HIGH-PERFORMING ORGANIZATIONS TYPICALLY TO THE FUTURE, AND TO TRY AND FIND OUT WHAT'S GOING ON IN THE FUTURE.

OBVIOUSLY THE CRYSTAL BALL GETS FAIRLY MURKY THE FURTHER UP WE GO.

HOWEVER, WE DID WANT TO MAKE SURE THAT WE'RE PREPARED FOR WHAT'S NEXT.

THAT TYPE OF PREPARATION LEAD TO THE COMMISSIONING OF THIS REVENUE STUDIES AND WE ARE GOING TO BE TAKING A DEEPER DIVE TO [INAUDIBLE] RESULTS BUT FIRST, WE'LL BE PRESENTING AN UPDATE ON THE CITY'S FINANCIAL CONDITION AS WELL AS [NOISE] FOLLOWING AN OVERVIEW, AGAIN, AS I MENTIONED, THE CONSULTANT WILL PRESENT RESULTS FOR THE REVENUE STUDY THAT THE CITY COUNCIL APPROVED THE MINISTRY'S BUDGET,

[00:05:01]

AND THEN EMPHASIZE THE SAME POLICIES AND PRACTICES THAT ARE [INAUDIBLE].

WE'RE LOOKING AT FUTURE SEEING SOME CHANGES COMING AND WE'RE TRYING TO GET THE COUNCIL THE DATA TO CONSIDER THE OPTION.

NOW, I'M GOING TO GO AHEAD AND INTRODUCE OUR DEPUTY CITY MANAGER LAURA ROCHA, WHO'S GOING TO GO AHEAD AND ASSIST WITH, LAURA?.

>> GOOD MORNING, MAYOR, [INAUDIBLE] AND COUNCIL MEMBERS.

WE ALL JUST TAKE A DEEP BREATH.

THAT WAS A LOT THIS MORNING ALREADY [INAUDIBLE], SO WE'RE HERE.

WE HAVE GREAT CONVERSATION TODAY.

FOR THE RECORD, MY NAME IS LAURA ROCHA, DEPUTY CITY MANAGER FOR MINISTRY OF SERVICES AND PRESENTING WITH ME TODAY IS OUR FINANCE DIRECTOR, ZACH KORACH.

FIRST, I WOULD LIKE TO ACKNOWLEDGE THAT TALKING ABOUT RAISING REVENUE IS UNCOMFORTABLE, AND WE REALIZE THAT.

IF YOU LISTENED TODAY, IT'S IMPORTANT TO KEEP IN MIND THAT THESE CONVERSATIONS ARE HEALTHY AND WE VALUE IN MAKING INFORMED DECISIONS AROUND THE FUTURE OF OUR CITY.

CARLSBAD HAS ALWAYS BEEN KNOWN AS A CITY THAT IS FINANCIALLY WELL-MANAGED AND THAT IS BECAUSE OF THE MANY POLICIES AND PRACTICES IMPLEMENTED BY THE CITY COUNCIL AND IMPROVED PLANNING THAT HAS BEEN DONE TODAY.

[NOISE] HERE WE GO.

CARLSBAD IS ENTERING A NEW PHASE OF LIFE AFTER 70 YEARS OF LARGE-SCALE DEVELOPMENT AND GROWTH, AND NOW OVER A 100 CITY FACILITIES, THE FUTURE NEEDS AND CHALLENGES OF OUR CITY WILL BE DIFFERENT.

[BACKGROUND] THIS ISN'T ANYTHING NEW.

WE HAD KNOW THIS WAS COMING AND WE HAD TALKED ABOUT THIS ON SEVERAL OCCASIONS.

IN FACT, THE NEXT PHASE OF GROWTH MANAGEMENT PLAN WAS A TOP PRIORITY FOR CITY COUNCIL THIS PAST YEAR.

ONE OF THE MANY BENEFITS OF GOOD FINANCIAL HEALTH THE CITY COUNCIL HAS MAINTAINED IS THAT IT GIVES US THE LUXURY OF TIME TO FORESEE SOME OF THESE CHALLENGES THAT MAY LIE AHEAD.

WE CAN AFFORD TO BE THOUGHTFUL BECAUSE WE ARE NOT FACING AN EMERGENCY.

INSTEAD, WE ARE FACING THE FUTURE WHERE THERE ARE IMPORTANT DECISIONS TO BE MADE.

ONE OF WHICH IS THE NEED TO MAINTAIN OR EVEN REPLACE THE INFRASTRUCTURE THAT WE HAVE SPENT THE LAST 70 YEARS BUILDING.

THIS LIFE CYCLE STAGE WE ARE DISCUSSING IS SOMETHING COMMON TO ALL CITIES.

CITIES TYPICALLY WILL EXPERIENCE A PERIOD OF RAPID GROWTH, COUPLED WITH RAPID EXPANSION OF INFRASTRUCTURE AND SERVICES AND GROWTH AGAIN STARTS TO DECLINE.

AT THAT POINT, BALANCING REVENUES AND SPENDING BECOMES EXTREMELY TOUGH.

MANY CITIES ARE NOT PREPARED, AND MUST START TO DECREASE THE LEVEL OF SERVICES.

IF A CONCERTED EFFORT IS NOT MADE TO KEEP THE CITY VITAL, INFRASTRUCTURE STARTS TO DECAY AND THE OVERALL QUALITY OF LIFE DECLINES.

I'M SURE WE CAN ALL THINK OF OLDER CITIES WHERE THIS HAS BEEN THE CASE.

WE'RE NOT AT THIS CRITICAL DECISION POINT YET, BUT IT IS COMING, AND THAT IS WHY WE'RE HAVING THESE CRITICAL CONVERSATIONS AND STARTING TO EXPLORE DIFFERENT OPTIONS.

SOME OF THE REASONS CITIES STRUGGLE THROUGH THIS TRANSITION IS THAT AS INFRASTRUCTURE AGES, THE INVESTMENTS NEEDED TO MAINTAIN OR REPLACE IT ARE HUGE.

OUR WATER, SEWER, AND STORM DRAIN SYSTEM ALONE, SOMETHING LARGELY UNDERGROUND AND NO ONE SEES, REPRESENTS OVER 2 BILLION IN ASSETS THAT NEED TO BE NEED TO BE MAINTAINED.

WE ALSO HAVE MORE PEOPLE TO SERVE WITHIN OUR COMMUNITY THAN WE DID IN THE PAST.

THIS IS OCCURRING AT THE VERY TIME THAT THAT FEES FROM BUILDING, THE FEES THAT ORIGINALLY PAID FOR MUCH INFRASTRUCTURE ARE SLOWING DOWN AND PASS ON CERTAIN REVENUES MEAN THAT REVENUES RARELY KEEP THE PACE WITH INFLATION OR THE INCREASE IN SERVICES COSTS.

THE OPTIONS AT THIS POINT ARE SIMPLE ON PAPER.

CITIES NEED TO EITHER RAISE MORE REVENUE OR DECREASE THE LEVEL OF SERVICE.

I SAY THEY'RE SIMPLE ON PAPER BECAUSE THESE DECISIONS ARE NOT EASY.

THE CITY OF CARLSBAD IS VERY PROUD OF THE HIGH LEVELS OF SERVICES WE PROVIDE AND OUR RESIDENTS EXPECT IT.

WE HAVE KEPT PACE WITH MAINTENANCE AND AVOIDED COSTLY EMERGENCY REPAIRS.

ON THE OTHER HAND, HOWEVER, NO ONE WANTS TO TALK ABOUT RAISING TAXES, BUT THE DATA GATHERING IS IMPORTANT FOR THE DECISION-MAKING.

THE REVENUE STUDY IS DATA AND DATA THAT SPEAKS TO WHAT IS VALUABLE TO OUR COMMUNITY

[00:10:01]

AND WHAT MAY BE WILLING TO PAY FOR IN ORDER TO MAINTAIN THE QUALITY OF LIFE THAT THEY EXPECT HERE IN CARLSBAD.

THIS BRINGS US TO TODAY'S PRESENTATION.

WE'RE GOING TO START BY SHARING OUR CURRENT FINANCIAL STATUS AND WHAT OUR PROJECTIONS ARE SHOWING TODAY AS WE KNOW IT.

THEN WE WILL SHARE THE RESULTS OF THE REVENUES STUDY THAT YOU APPROVE THIS YEAR'S BUDGET.

AGAIN, I WANT YOU TO EMPHASIZE THAT WE'RE STARTING THESE DISCUSSIONS EARLY.

WE SEE WARNING SIGNS AHEAD, AND OUR GOAL IS TO PROVIDE YOU WITH THIS DATA SO YOU CAN MAKE INFORMED DECISIONS.

WITH THAT, I WOULD LIKE TO INTRODUCE FINANCE DIRECTOR ZACH KORACH TO GO OVER SOME OF THIS FINANCIAL DATA.

>> PERFECT. THANK YOU LAURA.

ON THE TOPIC OR SUBJECT OF FISCAL CONDITION WE'RE GOING TO BE FOCUSING ON THE GENERAL FUND AND THE HISTORICAL REVENUES AND EXPENDITURES WE'RE SPENDING THAT THE CITIES HAS EXPERIENCED OVER A 15-YEAR PERIOD.

WE'LL BE TALKING ABOUT WHAT HAS CHANGED, NEW PROGRAMS, SERVICES, AS WELL AS THE EXPANSION OF EXISTING ONES.

WE'LL BE TALKING ABOUT THE ENHANCED PHYSICAL DISCIPLINE THAT WE'VE SEEN IN THE CITY IN RECENT YEARS, AND WE'LL FINALLY LOOK AT A CURRENT FORECAST.

HERE WE HAVE A LOOK AT THE GENERAL FUND.

A 15-YEAR LOOK, AS I MENTIONED, THE GENERAL FUNDS REVENUES REPRESENTED BY THE BLUE COLUMNS, GENERAL FUND EXPENDITURES REPRESENTED BY THE ORANGE COLUMNS.

THEN LASTLY, THE GENERAL FUND TRANSFERS, MUCH SMALLER, IT'S STILL THERE, REPRESENTED BY THE GRAY COLUMNS.

NOW WHEN LOOKING AT THIS CHART, IT IS IMPORTANT TO MAKE THE OBSERVATION WHAT WE COMPARING FROM THE START OF THIS PERIOD UNTIL THE END.

WE'RE LOOKING AT FISCAL YEAR 2007-2008, WHERE WE WERE THEN AND WHERE WE ARE NOW.

REVENUES HAVE ACTUALLY INCREASED APPROXIMATELY 60 PERCENT OVER THAT 15-YEAR PERIOD.

BUT IT'S INTERESTING TO KNOW THAT EXPENDITURES HAVE ALSO INCREASE AT A RATE OF 7 PERCENT OVER THAT 15-YEAR PERIOD.

BECAUSE THE CITY HAS BEEN OPERATING WITH A SURPLUS EVERY YEAR, AND THAT'S PREDOMINANTLY DUE TO BUDGET SAVINGS, THE CITY HAS BEEN AFFORDED THE OPPORTUNITY TO USE THOSE GENERAL FUND RESOURCES AND TRANSFER DOLLARS TO OTHER FUNDS SUCH AS CAPITAL PROJECTS AND THE CITY'S INFRASTRUCTURE REPLACEMENT FUND.

WHAT'S DRIVING THESE NEW COSTS, AND PARTICULARLY IN RECENT YEARS? WE LOOK TOWARDS THE MATERIALS, SUPPLIES, AND ENERGY, LIKE HEATING, AND LIGHTING, AND OTHER UTILITIES.

MAINTENANCE AND OPERATIONS BUDGETS WITHIN DEPARTMENTS OVER THAT 15-YEAR PERIOD THAT WE JUST LOOKED AT, IT INCREASED 10 PERCENT ON AVERAGE EACH YEAR.

COST OF LABOR IS ALSO CONTRIBUTING FACTOR THAT HAS INCREASED ON AVERAGE EACH YEAR 6 PERCENT OVER THAT 15-YEAR PERIOD.

INCREASES, PARTICULARLY OVER THE RECENT FOUR TO FIVE YEARS, WERE ALSO DRIVEN BY LEGAL REQUIREMENTS THAT WERE IMPOSED BY THE STATE AND THE FEDERAL GOVERNMENTS THAT COST THE CITY MONEY BUT ALSO IT'S IMPORTANT TO KNOW, THEY'RE NOT ELIGIBLE FOR REIMBURSEMENT ALL THE TIME.

THE CITY HAS ALSO ADDED SEVERAL NEW PROGRAMS AND SERVICES AND THOSE HAVE BEEN LISTED IN DETAIL ABOUT IN [INAUDIBLE] REPORT.

NEW DISCIPLINE. CITY COUNCIL HAS EXERCISED GREAT FINANCIAL STEWARDSHIP IN ESTABLISHING AND DEVELOPING A NUMBER OF IMPORTANT FISCAL POLICIES.

I WANT TO START BY FOCUSING ON CITY'S GENERAL FUND RESERVE POLICY.

SOMETIMES CALLED THE RAINY DAY FUND TO PROTECT AGAINST UNANTICIPATED CHANGES THAT CAN NEGATIVELY OR ADVERSELY IMPACT SAY, FINANCES.

CITY COUNCIL POLICY STATEMENT NUMBER 74 REQUIRES, THAT THE CITY HOLD IN THE GENERAL FUND RESERVE AN AMOUNT EQUIVALENT TO 40 PERCENT OF THE ANNUAL GENERAL FUND OPERATING BUDGET.

IN 2019, CITY COUNCIL ADOPTED PROVISIONS TO THIS POLICY, WHICH NARROWED THE FOCUS ON HOW THESE GENERAL FUND RESERVES COULD BE USED, AND SPECIFICALLY FOR THREE PURPOSES.

THE FIRST, SUBMIT ANY FINANCIAL IMPACTS RESULTING FROM A NATURAL DISASTER OR OTHER CATASTROPHIC EVENTS.

TWO, TO RESPOND TO THE CHALLENGES OF A CHANGING ECONOMIC ENVIRONMENT, AND THREE, TO CONTINUE DEMONSTRATING PRUDENT FISCAL MANAGEMENT AND CREDIT WORTHINESS.

THIS NEW POLICY PROVIDES GREATER CITY COUNCIL CONTROL OVER HOW RESOURCES ARE SPENT AND IT REALLY OPEN THE DOOR TO USING GENERAL FUND RESERVES TO STRATEGICALLY PUT THE CITY IN A BETTER LONG-TERM FINANCIAL POSITION.

HERE WE HAVE A LOT GOING ON IN THIS CHART AND I'LL PROVIDE FOR PURPOSES OF ASSISTING IN FINDING OUR BEARINGS HERE, I WANT TO HIGHLIGHT A FEW OF THE CHARACTERISTICS OF THIS CHART THAT WILL DEFINE WHAT WE'RE LOOKING AT.

THE GREEN SHADED AREA REPRESENTS THE 40 PERCENT POLICY THRESHOLD THAT SET FORTH IN CITY COUNCIL POLICY STATEMENT NUMBER 74.

[00:15:03]

AGAIN, WE'RE LOOKING AT THE HISTORICAL ACTUAL GENERAL FUND RESERVES OVER SAYING 15-YEAR PERIOD.

THE BLUE SHADED AREA REPRESENTS THE ACTUAL NEW GENERAL FUNDS RESERVE BALANCE IN RESPECT TO THE ANNUAL GENERAL FUNDS ADOPTED BUDGET.

AS YOU CAN SEE, OVER THIS 15-YEAR PERIOD, THE CITY HAS ACHIEVED COMPLIANCE WITH ITS POLICY OF HAVING AN EXCESS OF 40 PERCENT RESERVE FLOWS OVER THAT PERIOD OF TIME.

I WANT TO CLARIFY THE TWO COMPONENTS OF THE WIDE ACCESS.

ON THE LEFT SIDE WE HAVE THE PERCENTAGES RANGING FROM 0 TO 90 OR 100 PERCENT, AND THOSE ARE TIED TO THE POLICY LEVEL, 40 PERCENT.

NOW ON THE RIGHT SIDE OF THE CHART, THE Y-AXIS, WE HAVE THE DOLLAR VALUE AND WE WANTED TO INCLUDE BOTH ASPECTS OR LOOKS AT THIS FOR AN IMPORTANT PURPOSE.

WHEN WE'RE TALKING ABOUT A POLICY LEVEL OR RESERVE RATIO OF ACTUAL RESERVES IN RESPECTS TO THE ANNUAL BUDGET THAT'S SUBJECT TO FLUCTUATION.

IF THE BUDGET IS EXPERIENCING SIGNIFICANT DECREASES OR INCREASES ONE YEAR OVER THE NEXT, THAT MAY HAVE A SUBSTANTIAL IMPACT ON THE ACTUAL DOLLAR VALUE RESERVE.

BUT WHAT WE CAN SEE HERE IS THAT THEY DO CORRELATE VERY STRONGLY OVER THIS 15-YEAR PERIOD.

I JUST BRIEFLY WANT TO TALK ABOUT SOME OF THE THINGS IN DOLLARS THAT WE'RE SEEING OVER THIS 15-YEAR PERIOD.

STARTING AT THE FAR LEFT END OF THE CHART, FISCAL YEAR 2007-2008, WE SEE THAT THERE'S AN INCREASE IN THE GENERAL FUND RESERVE AND OVER AN EIGHT YEAR PERIOD, THERE WAS AN ACCUMULATION OF GENERAL FUND RESOURCES, APPROXIMATELY $30 MILLION THAT WAS ACCUMULATED.

UNTIL FISCAL YEAR 2016-17 STAFF BROUGHT FORWARD TO CITY COUNCIL RECOMMENDATIONS FOR ONETIME USES.

THIRTY MILLION DOLLARS WAS APPROVED TO BE TRANSFERRED OUT OF THE GENERAL FUND INTO THE CITY'S AND RESTRUCTURED REPLACEMENT FUND, AS WELL AS THE GENERAL CAPITAL CONSTRUCTION FUND.

THEN ALSO TO ASSIST IN ADDRESSING THE CITY'S CAPITALS PENSION DEBT OR ALSO REFERRED TO AS THE UNFUNDED LIABILITY.

WE SEE A SIMILAR TREND WITH THE FOLLOWING THREE OR FOUR YEARS, UP UNTIL FISCAL YEAR 2021, WE SEE THAT THE ACCUMULATION IS RISING ON THE BLUE SHADED AREA.

THEN ON THE SAME MONTH $30 MILLION TRANSFER FOR THOSE THREE PURPOSES WAS ALSO APPROVED BY CITY COUNCIL IN FISCAL YEAR 2021.

NEW CITY COUNCIL POLICIES.

WE TALKED ABOUT THE GENERAL FUND RESERVE POLICY, ONE OF THE MOST IMPORTANT POLICIES FROM A FINANCE PERSPECTIVE.

BUT THERE ARE A NUMBER OF OTHER POLICIES AND I WANTED TO HIGHLIGHT JUST A FEW.

COUNCIL POLICY NUMBER 91.

THIS WAS APPROVED IN JUNE OF 2021, WHICH POINT LINES NOT JUST SETTING ASIDE FUNDING EACH YEAR FOR INFRASTRUCTURE REPLACEMENT AS IT HAD BEEN DONE FOR YEARS IN THE PAST, BUT ALSO FOR GENERAL CONSTRUCTION NEEDS AND INVESTMENTS IN TECHNOLOGY.

COUNCIL POLICY NUMBER 87, WHICH PROVIDES GREATER CITY COUNCIL OVERSIGHT AND A STRATEGY FOR ALLOCATING SURPLUS MONEY EACH YEAR.

AMONG THE [INAUDIBLE] GENERAL FUND SURPLUS.

ONE IS ENSURING THAT THE GENERAL FUNDS RESERVES STAYS AT OR ABOVE THE 40 PERCENT POLICY LEVEL, AND TWO ADDRESSING PENSION DEBT AND MAKING SURE THAT THE CITY'S UNFUNDED LIABILITY'S MANAGEABLE.

ONCE THOSE TWO GOES IN THAT CIRCLE AND THEN YOU CARRY FORWARDS TO THE NEXT YEAR, IT'S A FUND ONE TIME EXPENSES ASSOCIATED WITH CITY COUNCIL GOALS AND OTHER NEEDS.

NEW OPERATING POLICIES.

IN ADDITION TO SUPPORTING THE CITY COUNCIL IN DEVELOPING AND ENACTING THE NEW BUDGET POLICIES THAT WE'VE ASSESSED, CITY MANAGER IMMEDIATELY UPON APPOINTMENT PUT NEW BUDGET PRACTICES IN PLACE AT THE ORGANIZATION LEVEL.

THIS WAS REALLY TO ACHIEVE TRANSPARENCY INTO THE CITY'S BUDGET PROCESS.

FIRST STEP THAT WAS TAKEN WAS ELIMINATING THE AUTOMATIC COST OF LIVING INCREASES TO DEPARTMENT BUDGETS.

INSTEAD, NOW, THERE'S A FORMALIZED PROCESS WHERE DEPARTMENTS MUST DEMONSTRATE IN SUBSTANTIATING THE NEED FOR EACH BUDGET REQUEST.

THE NEXT STEP WAS ELIMINATING THE ABILITY FOR DEPARTMENTS TO AUTOMATICALLY CARRIED FORWARD UP TO 10 PERCENT OF THEIR UNSPENT BUDGET FROM ONE YEAR TO THE FOLLOWING.

THE CITY HAS ALSO INVESTED HEAVILY TO LEVERAGE TECHNOLOGY TO ENSURE DECISIONS AREN'T SIMPLY MADE THAT THEY ARE INFORMED AND DRIVEN BY RELEVANT DATA.

LASTLY, THE CITY HAS RECOVERED FROM COVID-19 AND IT'S ADVERSITY IN FINANCIAL IMPACTS IN AN ACCELERATED FASHION.

BUT EVEN IN 22 DEPARTMENTS HAVE BEEN CHALLENGED TO REDUCE OUR MAINTENANCE AND OPERATIONS BUDGETS BY 2 PERCENT FOR THIS UPCOMING BUDGET HERE.

NOW, THE TOPIC OF NEW STAFF REQUEST, THIS WAS THE LAST ORGANIZATIONAL MEASURING PROCEDURE

[00:20:03]

THAT WAS IMPLEMENTED IN RECENT YEARS, IS THAT WHEN NEW STAFF POSITIONS ARE BEING CONSIDERED, THEY MUST MEET ONE OF THESE THREE CONDITIONS.

ONE, THEY ARE NEEDED TO COMPLY WITH THE NEW LEGAL AND OR REGULATORY ENVIRONMENT, TWO, THEY'RE NEEDED TO ADDRESS A CRITICAL PUBLIC SAFETY NEED, OR THREE, THEY'RE NEEDED TO SUPPORT THE CITY COUNCIL PRIORITY.

HERE WE HAVE TO LOOK AT THE CITY'S FIVE-YEAR FORECAST.

THIS SPANS BETWEEN FISCAL YEAR 20, WE SEE TWO YEARS OF ACTUALS, AND THEN FIVE YEARS OF ESTIMATION AND FORECASTED FIGURES.

THE BLUE BARS REPRESENT THE EITHER ACTUAL OR FORECASTED REVENUES, AND THE RED LINE REPRESENTS THE GENERAL FUNDS EXPENDITURES.

WE TALKED ABOUT A LOT OF GREAT MEASURES AND STEPS THAT THE CITY HAS TAKEN TO ENSURE FINANCIAL SUSTAINABILITY INTO THE FUTURE.

EVEN WITH THESE GREAT STRIDES, THE CITY'S LONG-TERM OUTLOOK INDICATES A POTENTIAL FOR EXPENDITURES TO EVENTUALLY SURPASS REVENUES.

THIS IS IMPORTANT GIVEN THE CITY'S DESIRE TO MAINTAIN AND BUILD A FUTURE THAT IT WANTS AND NEEDS, PARTICULARLY IN THE AREAS OF PUBLIC SAFETY, INFRASTRUCTURE, QUALITY OF LIFE, PARKS AND RECREATION, AS WELL AS OPEN SPACE.

NOW THIS IS A PREVIEW OF THE CITY'S FIVE-YEAR FORECAST.

IT'S IMPORTANT TO UNDERSTAND SOME OF THE ADVANTAGES AS WELL AS THE INHERENT LIMITATIONS WHEN USUALLY LOOKING AT A FORECAST.

SOME OF THE ADVANTAGES INCLUDE, IT'S A GREAT PLANNING TOOL.

WE USE IT TO GAIN A BETTER UNDERSTANDING OF HISTORICAL TRENDS AS WELL AS FUTURE TRENDS, AND YOU UNDERSTAND THE RELATIONSHIP OF A CITY'S REVENUES AND RESPECTIVE EXPENDITURES.

NOW, ON THE OTHER HAND, SOME OF THE LIMITATIONS INCLUDE THEIR ESTIMATES BASED ON INTERPRETED ASSUMPTIONS [NOISE] THAT ARE ALWAYS CHANGING.

AS THE SAYING GOES, THE MOMENT YOU PRINT OUT THE FORECAST, IT'S ALREADY OUTDATED.

THE LONGER WE PROJECT OUT, THE MORE UNCERTAINTY THERE IS.

WE REFER TO THIS AS THE CONE OF UNCERTAINTY.

[NOISE] WHEN WE LOOK OUT OVER THE NEXT FIVE YEARS, MUCH UNCERTAINTY LIES AHEAD, PARTICULARLY AROUND POTENTIAL FOR ECONOMIC DOWNTURN.

THE INDIRECT IMPACTS ON THE CITY'S PROPERTY VALUES, TOURISM, AS WELL AS DISPOSABLE INCOME, WHICH WILL UNDOUBTEDLY HAVE IMPACTS ON THE CITY'S PRIMARY REVENUE SOURCES; SALES TAX, PROPERTY TAX, [MUSIC] [INAUDIBLE] OCCUPANCY TAX, OR ALSO REFERRED TO AS HOTEL TAX.

WE'LL BE DIVING INTO THE FORECAST IN MORE DETAIL ON MAY 24TH, WHEN WE START BRING FORWARD TO CITY COUNCIL, FIRST [INAUDIBLE] HEARING BUDGET FOR FISCAL YEAR 22-23, BUT THE LONG-TERM OUTLOOK OF EXPENDITURES GROWING AT A FASTER RATE THAN REVENUES STILL REMAINS.

THE CITY'S DEMAND ON RESOURCES FOR BUILDING AND INFRASTRUCTURE REPLACEMENT AND IMPROVEMENT PROJECTS CONTINUES TO GROW.

THE CONCERN IS THAT THE GENERAL FUND MAY NOT BE ABLE TO PROVIDE AMPLE FUNDING NECESSARY TO MEET ALL OF THE CITY'S CAPITAL NEEDS.

NOW, THE LAST THING I WILL MENTION, I WANT TO BE CLEAR, WE'RE LOOKING AT THIS FIVE YEAR FORECAST CHART AND IN CONSIDERATION OF THE NEXT ITEM OF OUR CIP PRIORITIZATION, THAT ANY DECISIONS THAT COULD POTENTIALLY BE MADE ON AND IN REGARDS TO THAT SECOND ITEM MADE, NOT BEEN TAKEN INTO ACCOUNT MORE OF THESE SIMULATIONS INTO FIGURES THAT WE LOOKED AT TODAY.

I DID WANT TO MAKE SURE THE CITY COUNCIL KNOWS AND YOU ARE AWARE OF THAT.

AT THIS POINT, I WILL BE TURNING IT OVER TO JERRY [INAUDIBLE], WE HAVE A TEAM OF EXPERTS ON MUNICIPAL REVENUE MEASURES AND THEY'LL BE DISCUSSING IN FURTHER DETAIL RESULTS OF THE REVENUE STUDY.

>> THANKS, JACK. YOU GUYS WAIT A BIT. I HAVE A COUPLE OF SLIDES.

[INAUDIBLE].

[NOISE] HELLO, MEMBERS OF COUNCIL [INAUDIBLE] [NOISE].

>> COULD YOU SPEAK A LITTLE MORE INTO THE MIC? I DON'T THINK YOU'RE BEING PICKED UP.

>> OKAY. IS THAT BETTER?

>> YES.

>> HOW'S THAT? [INAUDIBLE]. HELLO, [INAUDIBLE] COUNCIL, MAYOR, AND THE MANAGERIAL STAFF, AND THE PUBLIC, MY NAME IS JERRY [INAUDIBLE] TBWBH PROPS AND MEASURES.

OUR FIRM SPECIALIZES IN PUBLIC CITIES AND PUBLIC AGENCIES PREPARE JUDICIAL REMEDY MEASURES FOR THE BALLOT BECOMES WITH A 100 SUCCESSFUL MEASURES [INAUDIBLE] FOR THE CITY, AROUND THE STATE, [INAUDIBLE] CARLSBAD SCHOOLS, [INAUDIBLE] COLLEGE, BUT WE ALSO WORKED ON A NUMBER OF OTHER [INAUDIBLE] TOURISM HERE IN [INAUDIBLE] CALIFORNIA, [INAUDIBLE] ETC.

WE'VE PREPARED IN ADVANCE OF THE SCIENTIFIC VOTERS THAT YOU'RE ABOUT TO HEAR RESULTS FROM.

WE DID REVIEW IN PREPARATION FOR THAT STUDY, WE WENT BACK AND LOOKED AT A NUMBER OF VARIOUS REVENUE ENHANCEMENT

[00:25:01]

POTENTIAL TOOLS OR OPTIONS THAT CITIES AROUND CALIFORNIA AND SAN DIEGO COUNTY CONSIDERED.

IN GENERAL, REVENUE ENHANCEMENTS REQUIRE VOTER APPROVAL OF CALIFORNIA.

GENERAL FUND ENHANCEMENTS REQUIRE SIMPLE MAJORITY VOTE OF APPROVAL, 50 PERCENT PLUS ONE OF THE VOTERS WHO PARTICIPATE IN THE ELECTION.

THEY DO REQUIRE A SUPER MAJORITY COUNCIL APPROVAL TO PUT THEM ON THE BALLOT, IN THIS CASE FOR VOTES, ALTHOUGH GENERALLY THE SUCCESSFUL ONES, MOST FREQUENTLY HAVE THE ANALYST AND COUNSEL SUPPORT AND THEY HAVE TO OCCUR NORMALLY, BUT GENERALLY OCCURRING BALLOT.

IN OTHER WORDS, THE [INAUDIBLE] TIME WHEN COUNCIL MEMBERS ARE ALREADY UP FOR ELECTION, EVEN IN NOVEMBER IN THE CASE OF THE CITY OF CARLSBAD.

[NOISE] THROUGHOUT THE STATE, IN THE CITY OR COUNTY, SALES TAX IN THE [INAUDIBLE] OF THE GENERAL FUND ARE BY FAR THE MOST COMMON OPTION.

JUST LOOKING BACK IN THE LAST 10 YEARS, [NOISE] 269 OF THESE HAPPENED STATE-WIDE AT 81 PERCENT PASS RATE.

THE PASS RATE IS ACTUALLY HIGHER THAN 81 PERCENT WHEN WE ELIMINATE THOSE THAT REQUIRE A TWO-THIRDS VOTE OF APPROVAL FOR DEDICATED USES.

THESE GENERALLY ARE VERY OFTEN PARTICULARLY HIGH IN TOURISM, OR VISIT OUR AREA.

THESE ONES GENERATE THE MOST REVENUE WHICH IS PROBABLY THE REASON WHY THEY'RE SO POPULAR.

ALSO IN GENERAL, PROPERTY OF [INAUDIBLE] [NOISE] BECAUSE THE TAX BURDEN IS DISTRIBUTED.

LOCALLY, IMPERIAL BEACH, OCEANSIDE, CHULA VISTA TWICE, DEL MAR, NATIONAL CITY, CAN REASONABLY PASS MEASURES LIKE THIS.

LEMON GROVE HAS FAILED UNLESS YOU'RE THE ONE THAT WE FOUND THAT HAD LOST IN THE COUNTY.

ONE THING TO NOTE ABOUT LOCAL SALES TAX IS IT SCARCELY LIMITED INCREMENT AVAILABLE.

THE STATE HAS A BASE OF 7.25 PERCENT THEN IT TAKES, THERE'S TWO PERCENT AVAILABLE FOR GLOBAL AGENCIES AND GOVERNMENTS TO POTENTIALLY CLAIM BASED ON THEIR OWN VOTER APPROVAL.

BUT THAT INCREMENT IS SPLIT AMONG COUNTY OR SANDAG IN ORDER TO LOOK AT THE TRENDS, OR WHOEVER GETS TO THE VOTERS AND CLAIMS IT.

FOR EXAMPLE, WITH SANDAG, WERE TO PASS A SALES TAX MEASURE THAT WOULD EAT INTO THE TWO PERCENT AVAILABLE FOR LOCAL CARLSBAD CITY FUNDING.

THAT DYNAMIC IN MANY PARTS OF THE STATE HAS CAUSED LOTS OF CITIES TO PUSH THOSE TAXES FOR THEIR GENERAL FUND, PARTICULARLY IN COUNTIES WHERE THERE ARE ARRESTED WITH REGIONAL AGENCIES SEEKING THEIR OWN SALES TAX ENHANCEMENTS.

CANNABIS TAX IS ALSO EXTREMELY POPULAR WITH VOTERS IN CALIFORNIA, PARTICULARLY SINCE FULL LEGALIZATION WAS PASSED.

AS YOU CAN SEE, THE PASS [INAUDIBLE] ARE VERY HIGH.

LOCALLY, AGAIN, VERY POPULAR IN SAN DIEGO COUNTY, LEMON GROVE, OCEANSIDE, LA MESA, VISTA HAS TWO DIFFERENT TAXATION MEASURES, CITY OF SAN DIEGO HAS PASSED.

OBVIOUSLY, LOCAL POLICY CHANGES REGARDING THE RETAIL OR PRODUCTION, DISTRIBUTION OF CANNABIS WOULD BE NEEDED.

OUR SCIENTIFIC STUDY DOES INCLUDE SOME ATTITUDE QUESTIONS FOR YOU TO LEARN ABOUT WHAT YOUR COMMUNITY THINKS OF THIS OR NOT A SINGLE VALID QUESTION ABOUT POTENTIAL CANDIDATES MEASURE IS THAT DOESN'T SEEM LIKE IT'S RIGHT YET.

THE SCIENTIFIC STUDY DOES COVER THE SALES TAX, WHICH I HAD MENTIONED BEFORE.

THERE ARE OTHER, AS I'VE MENTIONED A COUPLE OF REVENUE ENHANCEMENT OPTIONS THAT ARE POPULAR IN CALIFORNIA, THE TOT OR HOTEL, MOTEL, INCREASINGLY VACATION RENTAL TAX.

IT HAPPENS 81 OF THOSE PASSED STATEWIDE THE LAST TEN YEARS, WHILE THE 73 PERCENT PASSAGE RATE, AGAIN, HIGHER FOR THOSE WHO REQUIRES CIVIL MAJORITY RATHER THAN 2/3.

SOME JURISDICTIONS ARE STARTING TO EXPLORE WHETHER A VACATION RENTAL PROPERTIES COULD BE TAXED AT A HIGHER RATE THEN HOTELS AND MOTELS THAT HAVE GONE THROUGH THE CITY PLANNING PROCESS AND OFF THE DAY, IN THE BIDS OR IMPACTS FEES OR OTHER FEES, AND WE FOUND IN SOME COMMUNITIES THAT THE HOSPITALITY COMMUNITY WELCOMES THAT DIFFERENTIAL APPROACH TO THIS TAXATION.

OBVIOUSLY, WITH THE TOT AND PARTICULARLY THE COMMUNITY, I GUESS WHAT WE WANTED TO DISCUSS IT WITH YOUR HOSPITALITY INDUSTRY FIRST, BECAUSE THERE'S A KEY CONSTITUENCIES THERE, JUST GENERALLY RUN RIGHT AROUND JUST DO A SURVEY ABOUT IT, WHICH WOULD RUFFLE FEATHERS.

WE DID NOT INCLUDE THE TOT IN OUR SCIENTIFIC VOTER STUDY.

IT'S ALSO WORTH DEBATE AND IS SIGNIFICANTLY LESS REVENUE THAN THE SALES TAX POTENTIALLY AT THE 1 PERCENT.

TOT INCREASE WILL BE ABOUT THREE BILLION DOLLAR INCREASE, AND THE SALES TAX COULD BE 20 MILLION FOR YOUR GENERAL FUND.

PARCEL TAXES HAVE ABOUT A 51 PERCENT PASS RATE STATEWIDE, THEY'RE OVER IN SAN DIEGO COUNTY, THEY REQUIRE 2/3.

WE INCLUDED THEM HERE FOR REFERENCE, BUT IT'S NOT A RECOMMENDED APPROACH FOR YOU AND ME INCLUDED THE VOTERS STUDY AND OTHER OPTIONS AROUND THE STATE FOR DIFFERENT CITIES PURSUE ARE LISTED HERE AGAIN, NOT LOCAL EXAMPLES FROM SAN DIEGO COUNTY, BUT VARIOUS OTHER THINGS THAT CITIES PURSUE.

IF BUSINESS LICENSE STATUS OFTEN INCLUDES A PARKING COMPONENT.

SOME PEOPLE CONSIDER MEASURES LIKE THAT.

THE DOCUMENT PROPERTY TRANSFER TAX IS INCREASINGLY POPULAR AS THE PROPERTY VALUES AND SALES PRICES CONTINUE TO SKYROCKET IN CALIFORNIA,

[00:30:02]

AND THOSE CAN BE CREATED IN A WAY TO LIMIT THE PROPERTIES WITH THE SALE PRICES THAT THEY APPLY TO.

FOR EXAMPLE, IN THE CITY OF SANTA MONICA, IN 2020 WE PASSED ONE THAT APPLIES ONLY TO SALES OF 5 MILLION DOLLARS OR MORE.

THAT EXTENDS A LOT OF THE RESIDENTIAL ORDERS AND STILL GENERATES, I THINK THREE MILLION A YEAR FOR THE CITY OF SANTA MONICA, OUR ESTIMATED [INAUDIBLE].

THAT'S THE END OF THE REVENUE ENHANCEMENT OPTIONS OVERVIEW.

AS I SAID, AS WE LOOKED AT THESE AND WORKED WITH STAFF, WE RECOMMENDED THAT A SCIENTIFIC VOTER STUDY BE DONE ON THE MOST LIKELY OR FEASIBLE OF THOSE OPTIONS, WHICH IS THE SALES TAX IS THE MOST POPULAR.

AS I SAID THAT THAT SCIENTIFIC VOTER SURVEY, IT ALSO INCLUDES A MAGNITUDE OF QUESTIONS ABOUT CANVAS, BUT NOT A SINGLE VALIDATOR.

WITH THAT, I'LL START IT OVER TO DR. TIM MCCARTY WHO CONDUCTED THE SCIENTIFIC VOTER SURVEY AND PRESENT THE RESULTS.

>> THANK YOU, JERRY. GOOD MORNING, MR. MAYOR AND HIS COUNCIL [INAUDIBLE] THE MANAGER.

I AM DR. TIM MCCARTY.

I'M THE PRESIDENT OF [INAUDIBLE] RESEARCH AND [INAUDIBLE] TECHNOLOGY.

[INAUDIBLE] RESEARCH WILL AFFIRM THAT OVER THE LAST 20 YEARS, SPECIALIZED IN WORKING WITH CITIES THROUGHOUT STATE AS WELL AS OTHER PUBLIC AGENCIES USING SURVEYS TO HELP THEM TO DEVELOP A STATISTICALLY RELIABLE UNDERSTANDING OF THE COMMUNITIES AND THE CUSTOMERS THEY SERVE.

SURVEY ALWAYS ORGANIZED A TWO-PERSON TEAM WHO CONDUCTED ABOUT 1200 RESEARCH STUDIES WITH PUBLIC AGENCIES.

ABOUT HALF OF THE WORK WE'RE DOING IN THE CURRENT PERIOD IS WHAT WE CALL REGULARIZATION FEASIBILITY STUDIES LIABLE WE'RE GOING TO BE TALKING ABOUT TODAY WHERE THE GOAL IS TO UNDERSTAND THAT IT'S FEASIBLE TO PUT A RECORD MEASURE ON THE BALLOT, AND IF THIS FEASIBLE, HOW WOULD YOU GO ABOUT STRUCTURING THAT MEASURE IN A WAY THAT'S CONSISTENT WITH A TYPE OF ISSUE THAT THE COMMUNITY IS INTERESTED IN SUPPORTING.

WE'VE HAD A LOT OF SUCCESSFUL YEARS.

TODAY WE FELT THAT OUR CLIENTS, WHAT MEASURES ON THE BALLOT THAT OVERALL BASED ON OUR RECOMMENDATION IS TO GO TO BALLOT IS SUCCESSFUL AT 95 PERCENT, WE PROBABLY RAISED ABOUT 34 MILLION DOLLARS.

YOU'D GO TO THROUGH MEASURES AROUND STATE AND A LOT OF LOCAL EXAMPLES HERE IN SAN DIEGO COUNTY.

THIS IS LOCATED IN SOME INDUSTRIES DOWN THE ROAD, SO PRETTY FAMILIAR WITH THE COMMUNITY.

I MENTIONED OUR EXPERIENCE. I'M GOING TO LEAVE THIS AS I GO THROUGH TODAY'S PRESENTATION.

I MAY MAKE A REFERENCE TO HOW IT WAS ALSO CARLSBAD COMPARED TO WHAT WE SEE IN OTHER CITIES.

PERHAPS IN RESPONSE TO SOME OF THE QUESTIONS WE MAY ASK, I MADE REFERENCES TO WHAT WE'RE PARTICULARLY IN OTHER CITIES AROUND THE STATE.

I JUST WANTED YOU TO HAVE A SENSE FOR THE CONTEXT FROM WHICH I'LL BE SPEAKING.

I ALSO WELCOME QUESTIONS FROM COUNCIL AS I GO OR AT THE END WHICHEVER IS YOUR PREFERENCE.

NEXT WE HAVE CONTROL HERE.

HERE WE GO. BEFORE WE TALK ABOUT RESULTS, I'LL TAKE QUICK MOMENT TO REVIEW THE PURPOSE OF THE STUDY AND THE METHODOLOGY.

IN TERMS OF THE PURPOSE OF THE STUDY, WHEN YOU'RE GOING TO READ AN INITIAL FEASIBILITY STUDY, IT REALLY COMES DOWN TO ANSWERING OR ADDRESSING THOSE THREE GOALS THERE.

THE FIRST IS JUST TO DETERMINE IF IT'S FEASIBLE.

WHAT I MEAN BY THAT IS IF YOU AS A COUNCIL, WERE CHOOSING A PLACE TO MEASURE ON THE OUTCOME BALLOT, DOES IT HAVE A REASONABLE CHANCE OF SUCCESS? THE ANSWER TO THAT QUESTION IS AN OBVIOUS YES.

SOMETIMES YOU DO THIS WORK AND NO MATTER HOW YOU LOOK AT THE DATA, YOU WILL JUST CONSIDER THOSE APPLICATIONS WHERE YOU ARE TODAY TO WHERE YOU NEED TO BE AND HAVE A GOOD CHANCE OF SUCCESS ON ELECTION DAY.

IF THAT'S THE CASE, I'LL BE THE FIRST PERSON TO TELL YOU THAT.

IF WE DO FIND FEASIBILITY, THAT NEXT GOAL, IT KICKS IN HERE, WHICH IS HOW DO YOU GO ABOUT STRUCTURING THE MEASURES SO THAT IT'S CONSISTENT WITH THE TYPE OF MEASURE THAT YOUR COMMUNITY IS INTERESTED IN SUPPORTING AND IT'S CONSISTENT WITH THEIR PRIORITIES.

THERE'S LOTS OF COMPONENTS TO ANY TYPE OF REVENUE MEASURE.

THE BASICS BEING, HOW MUCH IT'S GOING TO COST THEM, WHAT IS IT GONG TO FUND? HOW LONG IS IT GOING TO LAST? ACCOUNTABILITY PROVISIONS ARE BUILT-IN, ETC.

THE SURVEY HELPS GUIDE IN THAT.

THEN FINALLY ITS AN OPPORTUNITY TO GATHER INFORMATION THAT'S NEEDED FOR COMMUNICATIONS IN OUR REACH.

I'M A FIRM BELIEVER THAT PUBLIC AGENCIES TAKE THE STEP OF PLACING A REVENUE MEASURE ON THE BALLOT AND ASKING VOTERS TO MAKE THAT DECISION.

DO INCUMBENT UPON THAT PUBLIC AGENCY TO INFORM VOTERS ABOUT THEIR DECISION YOU'RE ASKING THEM TO MAKE.

THAT ISN'T TELLING THEM TO VOTE YES OR NO.

YOU ARE NOT ADVOCATING TO [INAUDIBLE] THEM DOWN.

YOU'RE SIMPLY GIVING THEM THE INFORMATION THEY NEED TO MAKE AN INFORMED DECISION.

IN TERMS OF THE METHODOLOGY SURVEYS CONDUCTED IN MARCH OF THIS YEAR, AND WE SPOKE WITH 894 INDIVIDUALS WHO ARE WHAT WE CALL LIKELY NOVEMBER 2022 VOTERS.

THESE ARE INDIVIDUALS WHO BASED ON WHEN WE REGISTERED VOTERS IN THE CITY, THE TYPES OF ELECTIONS THEY PARTICIPATED IN THE PAST AS WELL AS OTHER DEMOGRAPHICS, WE ANTICIPATE WOULD BE LIKELY TO CAST A BALLOT IN THE NOVEMBER ELECTION.

WE USE WHAT'S CALLED A STRATIFIED CLUSTERED RANDOM SAMPLE, WHICH I CAN GET INTO THE DETAILS OF THAT AS YOU LIKE.

BUT SUFFICE TO SAY THAT IT GUARANTEES US ARE A SET THAT IF WE HAD OUR DATA COLLECTION PROCESS WE HAD A SAMPLE IN THIS CASE OF 894, THAT IS A PERFECT REPRESENTATION OF THE PROFILE OF YOUR OVERALL LIKELY NOVEMBER VOTER ELECTED LOOKS LIKE IN TERMS OF THINGS LIKE AGE AND GENDER, PARTISANSHIP, COUNCIL PARTY TYPES, WHERE THEY LIVE IN THE CITY, ETC.

IT'S PERFECTLY REPRESENTATIVE OF THAT NOVEMBER UNIVERSE.

ONCE WE HAD SAMPLED OUR RESPONDENTS, WE USED THREE METHODS TO REACH OUT TO RECRUIT EMAIL, TEXTS, AND TELEPHONE.

WE ALLOW THEM TO JUST SPEAK VIA ONLINE AT

[00:35:02]

A PASSWORD PROTECTED WEBSITE OR BY TELEPHONE, WHICHEVER THEY PREFERRED.

NOW BECAUSE THIS WAS A RANDOM SAMPLE OF 894 AND NOT A CENSUS OF ALL OF YOUR LIKELY NOVEMBER VOTERS, IT HAS WHAT'S KNOWN AS A PART OF AMERICAN SAMPLING, AND THAT IS A LITTLE OVER 3 PERCENT.

WHAT THAT MEANS IS WE CAN BE 95 PERCENT CONFIDENT THAT THE RESULTS WE'LL BE TALKING ABOUT TODAY ARE WITHIN 3 PERCENT OF WHAT WE WOULD'VE FOUND HAVING SPOKEN WITH ALL OF YOUR NOVEMBER VOTERS.

ONE OTHER THING I WANT TO MENTION, I NORMALLY DON'T HIGHLIGHT THE PERIOD OF TIME THAT WE'RE IN THE FIELD BECAUSE IT TENDS NOT TO MATTER THAT MUCH.

BUT CALL THAT THINGS HAVE BEEN CHANGING QUITE A BIT OVER THE LAST MONTH AND A HALF OR SO WITH WHAT'S BEEN HAPPENING IN UKRAINE, THAT PERIOD OF MARCH 11TH TO MARCH 17TH, WAS SEVERAL WEEKS INTO WHAT HAD BEEN ESCALATING GAS PRICES.

OBVIOUSLY, INFLATION'S BEEN RUNNING AT ABOUT 8.5 PERCENT STILL HAVE ELEMENTS OF THE PANDEMIC WITH US.

I MENTIONED THAT MAINLY BECAUSE WITH EVERYTHING THAT'S BEEN HAPPENING RECENTLY, IT WAS THIS QUESTIONABLE THAT THIS WHOLE CAPTURE THAT IS BAKED INTO THE RESULTS OR NOT.

IN THIS CASE, IT IS.

THAT VOTERS WERE QUITE AWARE OF WHAT'S BEEN HAPPENING WITH INFLATION OF THOSE GAS PRICES AT THAT POINT.

ON THE RESULTS, WE OPENED UP THE SURVEY WERE A FEW QUESTIONS JUST TO GET AN UNDERSTANDING OF HOW VOTERS VIEW CARLSBAD AS A PLACE TO LIVE, AS WELL AS THE CITY'S PERFORMANCE.

WE OPEN UP THE FIRST QUESTION HERE BEING THE ANSWERS TO, HOW WOULD YOU RATE THE OVERALL QUALITY OF LIFE IN THE CITY OF CARLSBAD? WOULD YOU SAY IT'S EXCELLENT, GOOD, FAIR, POOR, OR VERY POOR? YOU CAN SEE HERE FROM THIS SLIDE, THE OVERALL RESULT THAT IN CARLSBAD THE RESIDENTS HAVE A VERY HIGH OPINION OF THE COMMUNITY AS A PLACE TO LIVE IN.

WE HAD 95 PERCENT OF RESPONDENTS SAY THAT IT'S EITHER EXCELLENT OR GOOD.

WITH JUST FIVE PERCENT WHO WOULD SAY FAIR, POOR, AND VERY POOR.

THIS OPINION OF THE QUALITY OF LIFE IN THE COMMUNITY IS ALSO WIDESPREAD WHEN YOU LOOK AT IT BY ALL THE DIFFERENT SUBGROUPS THAT WE LOOK AT IN SURVEYS SUCH AS BY LENGTH OF RESIDENCE, BY WHETHER THEY HAVE A CHILD IN THEIR HOME, THEIR AGE, WHETHER THEY ARE THE HOMEOWNER, GENDER, PARTISANSHIP, ETC.

EVERY SINGLE ONE OF THOSE SUBGROUPS WE HAD AT LEAST 90 PERCENT RESPONDENTS WITH OPINIONS THAT THE RATE OF QUALITY OF LIFE IS [INAUDIBLE].

YOUR RESIDENTS ARE PARTICULARLY HIGH UP AGAIN ON THE QUALITY OF LIFE IN YOUR COMMUNITY.

[BACKGROUND] WE DID FOLLOW THAT QUESTION ON WITH ANOTHER THE QUESTION WHERE WE SAID, IF THE CITY GOVERNMENT COULD CHANGE ONE THING TO MAKE CARLSBAD A BETTER PLACE TO LIVE NOW IN THE FUTURE WHAT CHANGE WOULD WE LIKE TO SEE? THIS QUESTION WAS ADMINISTERED IN AN OPEN-ENDED MANNER, MEANING THAT WE DIDN'T PROVIDE THEM WITH THE LIST YOU SEE THERE ON THE SLIDE AND TELL THEM TO PICK ONE.

THEY HAVE TO TELL US IN HER OWN WORDS, WHAT ONE CHANGE CAME IN MIND THAT THEY THINK WOULD MAKE THE COMMUNITY BETTER, AND THEN WE WENT BACK TO REVIEW THOSE FOR FAVOR IN RESPONSE TO GROUP THEM INTO CATEGORIES WE SEE HERE.

ONE THING I'LL MENTION ON TOP IS IF YOU TAKE THE THIRD AND FOURTH RESPONSES DOWN.

I'M NOT SURE YOU CAN'T THINK OF ANYTHING AND NO CHANGE IS NEEDED, EVERYTHING IS FINE.

YOU ADD THOSE UP, IT'S ABOUT 20 PERCENT.

ONE OUT OF FIVE VOTERS WHEN YOU HAVE A SOAPBOX AND SAY STAND UP AND TELL US ONE THING WE CAN DO TO MAKE OUR COMMUNITY BETTER, THEY'RE STUCK FOR AN ANSWER, AND WHERE THEY SAID, THEY DON'T WANT TO CHANGE ANYTHING.

THAT'S REALLY THE IDEAL RESPONSE YOU WOULD EXPECT TO A QUESTION LIKE THIS.

BEYOND THAT THOUGH, YOU CAN SEE THE TOP RESPONSES WE HAD 16 PERCENT WHO MENTIONED SOMETHING ABOUT LIMITING GROWTH OR DEVELOPMENT OR PRESERVING OPEN SPACE.

YOU HAVE ABOUT 15 PERCENT OF WHO WANT TO SEE THE HOMELESS ISSUES BETTER ADDRESSED.

YOU HAD IMPROVING PUBLIC SAFETY ABOUT 8 PERCENT AND THEN PROVIDING MORE AFFORDABLE HOUSING WAS ABOUT 6 PERCENT.

THAT GIVES YOU A SENSE OF THE TOP OF MIND CHANGES THAT THE RESIDENTS WOULD LIKE TO SEE IN CARLSBAD.

THEN FROM THERE, WE ASKED A QUESTION ABOUT HOW THEY USE THESE PERFORMANCE.

GENERALLY SPEAKING, ARE YOU SATISFIED OR DISSATISFIED WITH THE JOB THAT STEVE CARLSBAD IS DOING TO PROVIDE CITY SERVICES BECAUSE WE'RE ASKING TO YOU SPEAK ABOUT THE CITY'S PERFORMANCE OVERALL.

WE ARE NOT ASKING YOU TO SPEAK ABOUT A PARTICULAR ISSUE LIKE STREETS AND ROADS OR LAW ENFORCEMENT OR FIRE.

THIS CAN BE CONSIDERED AN OVERALL PERFORMANCE RATING OF THE CITY, WHAT WE FOUND IS WE HAD 86 PERCENT OF RESPONDENTS SAY THAT THEY WERE SATISFIED WITH THE CITY'S PERFORMANCE AND ABOUT 10 PERCENT WERE DISSATISFIED AND THE REST BEING UNSURE.

OVERALL, YOU HAVE NEARLY NINE RESIDENTS SATISFIED FOR EVERY ONE RESIDENT THAT IS DISSATISFIED, THAT'S A GREAT RATIO.

AGAIN, LIKE THAT POSES PERCEPTIONS OF THE QUALITY OF LIFE AND COMMUNITY.

WHEN YOU LOOK AT HOW THEY RATE CITIES PERFORMANCE STAFF, POSITIVE FEELINGS OF SATISFACTION LEVELS WERE ALSO WIDESPREAD ACROSS THE VARIOUS LEVELS OF RESIDENCE.

SO AFTER THOSE INITIAL QUESTIONS OR A BIT OF A WARM-UP, WE GET RIGHT TO WHAT WE CALL THE INITIAL BALLOT TEST.

WE GET THE IDEA HERE IS BEFORE WE GET ANY DEEPER INTO THIS INTERVIEW, START TALKING IN MORE DETAIL ABOUT THE VARIOUS SERVICE THAT CAN BE FUNDED, PRESENTING RESPONDENTS WITH ARGUMENTS PRO AND CON RELATED TO A POTENTIAL MEASURE.

WE WANT TO PRESENT THEM A MOCK-UP OF WHAT WE THINK THAT 75 WE'RE

[00:40:03]

BALANCING COULD LOOK LIKE IF IT WERE PLACED ON THE NOVEMBER BALLOT.

THIS IS AN INITIAL BALLOT SO THIS IS A REALLY GOOD GAUGE OF WHERE YOUR VOTERS ARE AT ON NATURAL PERSPECTIVES PROPOSAL BECAUSE WE HAVEN'T PROVIDED THEM WITH ANY ADDITIONAL BACKGROUND INFORMATION BEYOND WHAT YOU SEE HERE IN 75 WORDS.

THIS IS STRUCTURED AS A GENERAL SALES TAX, MEANING IT'S GOING TO PROVIDE FUNDING FOR GENERAL CITY SERVICE, SUCH AS ALL THOSE THINGS YOU SEE THERE IN THE BULLET, I WILL SET A ONE PERCENT RATE AND WE RAISED ABOUT 20 MILLION DOLLARS ANNUALLY FOR THE CITY SERVICES.

SO THAT'S THE LANGUAGE THAT WE TESTED AND HERE ARE THE RESULTS.

AFTER THAT INITIAL BALLOT TEST, WE HAD 57 PERCENT OF RESPONDENTS TELL US THEY WOULD SUPPORT THAT PROPOSAL, WE HAVE ABOUT 34 PERCENT WHO OPPOSED AND YOU HAVE NINE PERCENT WHO WERE UNSURE.

FOR A GENERAL SALES TAXES HERE IN CALIFORNIA, YOU NEED A SIMPLE MAJORITY.

SO THIS INITIAL BALLOT TEST, WE'RE CHECKING IN ABOUT SEVEN POINTS ABOVE THAT SIMPLE MAJORITY THAT'S REQUIRED FOR PASSAGE.

THE NEXT COUPLE OF SLIDES ARE GOING TO SHOW SOME BREAKDOWNS OF THE LEVELS OF SUPPORT BY DIFFERENT SUBGROUPS AT THIS INITIAL BALLOT TEST.

THIS IS A NATURAL REACTION TO THIS PROPOSAL.

AS YOU CAN SEE HERE WE SHOW THAT HOW SUPPORT LEVELS BREAKDOWN BY THE LENGTH OF RESIDENCE IN THE CITY THERE ON THE LEFT, GENDER, WHETHER THEY HAVE A CHILD IN THE HOME AS WELL AS WHETHER THEY ARE A HOMEOWNER OR A RENTER AND WHAT'S STRIKING IS THE CONSISTENCY HERE, RIGHT.

ALTHOUGH THERE'S A LITTLE BIT OF VARIATION WITH NEWER RESIDENCY, NEWER RESIDENTS MEANING LESS THAN 10 YEARS BEING A LITTLE MORE IN SUPPORT OF THIS THAN LONGER-TERM RESIDENTS.

FOR THE MOST PART, YOU'RE SEEING A LOT OF CONSISTENCY WITH SUPPORT RANGING FROM 54 PERCENT TO 63 PERCENT ACROSS THE VARIOUS SUBGROUPS.

THIS NEXT SLIDE HERE SHOWS BY AGE.

AGAIN, EVERY SINGLE ONE OF THE SUBGROUPS ABOVE THAT 50 PERCENT LINE THAT YOU NEED TO BE SUCCESSFUL.

THERE'S ONE GROUP IN THE SECOND SLIDE HERE THAT IS SLIGHTLY BELOW, AND THAT'S REPUBLICANS, AT 46 PERCENT.

WHAT'S STRIKING ABOUT THIS, AGAIN, I DO THIS WORK AROUND THE STATE QUITE A LOT, IS THAT NORMALLY WHEN YOU TALK ABOUT TAX MEASURES, THIS IS ONE OF THE DEFINING DIFFERENCES BETWEEN THE PARTIES AND YOU SEE REALLY STRONG SUPPORT LEVELS, TYPICALLY FROM DEMOCRATS.

IN THE LAST FEW YEARS, I'VE SEEN SUPPORT LEVELS ON REPUBLICANS FEE AS LOW AS IN THE 20 PERCENT RANGE DEPENDING ON WHAT TYPE OF MEASURE WE ARE OWNING.

SO THE FACT THAT YOU HAVE 46 PERCENT, ALMOST HALF OF REPUBLICANS SAY THAT THEY WOULD SUPPORT THIS MATTER ON NATURAL MEANS THAT THEY SEE A LOT OF THIS PROPOSAL IN THIS PROPOSAL MEASURE THAT'S ATTRACTIVE TO THEM BECAUSE NORMALLY THERE SUPPORT LEVELS ARE NOT AS HIGH AS THAT.

NOW AFTER THAT INITIAL BALLOT TEST, WE GET TO RECALL PRODUCTS AND SERVICES SESSION POLL.

HERE'S WHERE WE'RE TRYING TO DO TWO THINGS.

NUMBER ONE, WE'RE GOING TO START TO EDUCATE THIS RESPONDENT MORE ABOUT WHAT THIS PROPOSAL SALES TAX MEASURE WOULD ACCOMPLISH.

UP TO THIS POINT, WE ONLY HAD THAT INITIAL BALLOT TEST WHICH IS 75 WORDS AND WE'RE CONSTRAINED TO WHAT WE CAN SAY THIS MEASURE COULD DO.

HERE WE GET TO UNPACKET ALL THE DIFFERENT WAYS THAT THE MEASURE OF FUNDS COULD BE SPENT AND IN THAT WAY, CLOSER TO GETTING A BETTER UNDERSTANDING OF WHAT YOUR PROPOSAL IS ABOUT.

THE OTHER THING IT ALLOWS US TO DO IS TO UNDERSTAND FOR EACH OF THE THINGS THAT YOU COULD SPEND SOME OF THOSE REVENUES ON, HOW THEY FEEL ABOUT THOSE ITEMS AND WHICH ARE THEIR PRIORITIES.

WHAT'S STRIKING ABOUT THIS GRAPHIC IS THAT ALL BUT ONE OF THE SERVICES TESTED HAVE AT LEAST 70 PERCENT OF RESPONDENTS SAY THAT THEY WERE FAVORED SPENDING SOME OF THE MONEY ON THAT ITEM.

TOWARDS THE TOP THERE YOU HAVE A SERIES OF ABOUT SEVEN SERVICES THERE THAT HAD 80 PERCENT PLUS OF RESPONDENTS SAY THAT THEY WERE IN FAVOR SPENDING SOME ON THE SERVICES ALSO ON THE FUNDING ON THOSE SERVICES.

IF YOU LOOK AT THAT TOP COLLECTION OF SEVEN OR EIGHT ITEMS, WHAT YOU SEE HERE IS A PRETTY CONSISTENT PATTERN.

IT'S ABOUT PUBLIC WORKS AND IT'S ABOUT POLICY.

NUMBER ONE, MAINTAINING PARKS, OPEN SPACE AND RECREATION FACILITIES INCLUDING COURTS, SPORTS FIELDS AND PLAYGROUNDS.

SO MAINTENANCE OF THOSE.

NUMBER TWO, MAINTENANCE OF LOCAL STREETS AND REPAIRING POTHOLES.

NUMBER THREE, HUMAN TRASH AND POLLUTION ON ALL LOCAL WATERWAYS AND OFF BEACHES.

NUMBER FOUR, KEEPING PUBLIC AREAS, BUILDINGS AND RESTAURANTS, CLEANING AND [NOISE] THAT THEY GET TO 9-1-1 RESPONSES, FIRE PROTECTION, PARAMEDIC, ETC.

SO IT'S REALLY THE PRIORITIES THAT YOUR RESIDENTS PLACED ON HOW THESE FUNDS WILL BE SPENT WOULD BE BOTH PUBLIC WORKS [BACKGROUND].

NOW, IF THE COUNCIL WERE TO CHOOSE TO PLACE THIS MEASURE ON THE NOVEMBER BALLOT, THERE WILL BE ELECTION CENTER, THERE WILL BE AN ELECTION CYCLE [NOISE].

YOU'RE GOING TO HAVE A LOT OF DISCUSSION AND DEBATE IN YOUR COMMUNITY ABOUT THIS PROPOSAL.

YOU HAVE SOME FOLKS WHO WILL STEP UP AND ADVOCATE TO THEIR FRIENDS AND NEIGHBORS ABOUT WHY THIS IS NEEDED AND WHY THEY SHOULD VOTE YES.

YOU MIGHT ALSO HAVE SOME FOLKS WHO STEP UP AND THINK THIS IS A BAD IDEA OR OPPONENTS, AND THEY SAY THIS IS SOMETHING WE SHOULDN'T BE DOING AND HERE'S WHY.

FOR THIS TO BE RELIANT ON AGE AND THE FEASIBILITY OF A POTENTIAL GENERAL SALES TAX MEASURE FOR NOVEMBER BALLOT,

[00:45:01]

WE NEED THE CITY TO LIKE THAT DISCUSSION AND DEBATE AND A SPACE OF POLL SO WE HAVE A GOOD UNDERSTANDING NOT ONLY WHERE YOUR VOTERS ARE AT ON THE NATURAL, WHICH WAS THAT INITIAL BALLOT TEST, BUT WHAT HAPPENS TO SUPPORT FOR THIS PROPOSAL ONCE VOTERS HEAR THE TYPES OF ARGUMENTS THEY ARE GOING TO HEAR PRO AND CON DURING ELECTION CYCLE.

SO WE STARTED OUT BY SIMULATING THAT DEBATE IN THE SPACE OF POLL BY PRESENTING FIRST POSITIVE ARGUMENTS OF THE NATURE OF THE QUESTION IS SUPPORTERS OF [INAUDIBLE] IN INSERT THE POSITIVE ARGUMENT.

DO YOU THINK THIS IS A VERY CONVINCING, SOMEHOW CONVINCING OR NOT AT ALL CONVINCING REASON TO SUPPORT THE MEASURE.

YOU CAN SEE HERE THAT A LOT OF THE POSITIVE ARGUMENTS GET SOME TRACTION.

YOU HAVE ABOUT ANYWHERE FROM MID-FIFTIES TO MID-SIXTIES PERCENT OF VOTERS STAY THAT THEY FIND A REASON TO BE AT LEAST SOME OF THE CONVINCING REASONS FOR MEASURE.

THE NUMBER ONE ITEM ON THE LIST THOUGH, WAS THE FUNDING RAISED BY THIS MEASURE WILL ALLOW THE CITY TO KEEP UP WITH BASIC REPAIRS AND MAINTENANCE.

THE STREETS, SIDEWALKS AND STORM DRAINS, PUBLIC FACILITIES, IF WE DON'T TAKE CARE OF THEM NOW IT'S GOING TO BE MORE EXPENSIVE TO REPAIR IN THE FUTURE.

THE SECOND CAUSE ALREADY HAS TO DO WITH RESPONSE TIME FOR 9-1-1 EMERGENCIES.

AT THIS POINT IN THE POLL, RESPONDENTS HAVE HEARD MORE ABOUT THIS PROPOSAL, THAN THEY DID INITIALLY.

SO WE HAVE A CHANCE TO TALK WITH THEM IN MORE DETAIL ABOUT HOW THE MONEY COULD BE SPENT.

WE HAD A CHANCE TO CONVEY POSITIVE ARGUMENTS SO WE CIRCLE BACK WITH WHAT WE CALL OUR INTERNAL BALLOT TEST, WE PRESENT THAT SAME 75 WORKOUT STATEMENT TO THEM AND WE SAY HOW WOULD YOU IMPROVE IT MORE, WHERE DO YOU STAND? RESULTS ARE SHOWN HERE IN THIS PIE CHART.

SO OVERALL SUPPORT FOR PROPOSAL TAKES UP ABOUT FOUR POINTS TO 61 PERCENT SUPPORT, THAT IS 11 POINTS ABOVE THE SIMPLE MAJORITY REQUIRED FOR PASSAGE FOR THIS MEASURE.

NOW AFTER THE INTERNAL BALLOT TEST THOUGH, WE GET TO THE NEGATIVES.

THE IDEA BEHIND THE NEGATIVES IS I WANT TO P [INAUDIBLE] MY OPPONENT POWER, I WANT TO ANTICIPATE WHAT AN OPPONENT OF THE SPECIAL MIGHT SAY, I WANT TO CONVEY THOSE TYPES OF ARGUMENTS TO RESPONDENTS, BECAUSE I'LL PROBARBLY GET A REALISTIC UNDERSTANDING OF HOW THEY MAY REACT SHOULD YOU PUT THIS MEASURE ON THE BALLOT, SHOULD YOU GET ORGANIZED ON OPPOSITION? WHAT SORT OF IMPACT THAT MIGHT HAVE HAD ON VOTER SUPPORT FOR YOUR PROPOSAL.

I CALL IT PRESSURE TESTING.

IT DOESN'T NEED TO UNDERSTAND HOW RESILIENT SUPPORT FOR THIS PROPOSAL ISSUED, THEY'LL BE AN OPPOSITION.

SO YOU CAN SEE HERE THAT SOME OF THE NEGATIVE ARGUMENTS WE TEST DO GET TRACTION AND THE NUMBER ONE, TAXES ARE ALREADY TOO HIGH AND WE CAN'T AFFORD ANOTHER TAX INCREASE.

THIS IS ESPECIALLY TRUE FOR SENIORS AND OTHERS ON FIXED INCOMES.

FOLLOW IT UP WITH LOCAL BUSINESSES AND RESIDENTS HAVE BEEN HIT HARD BY THE PANDEMIC AND INFLATION, MANY ARE STRUGGLING JUST TO STAY AFLOAT.

NOW IS NOT THE TIME TO BE RAISING TAXES.

SO WE PREP OUR RESPONDENTS WITH THESE FIVE NEGATIVE ARGUMENTS TO AGAIN SEE HOW RESILIENT THERE LEVEL OF SUPPORT OF THIS PROPOSAL IS.

THE ANSWER IS HERE.

AFTER THAT WE CIRCLE BACKWARD FINAL BALLOT TEST.

AS WE PRESENT THAT 75 WORKOUT STATEMENT ONE MORE TIME TO GET AN UNDERSTANDING.

HOW MUCH OF THE SUPPORTERS HAVE VOTED IN RESPONSE TO THOSE MAIN ARGUMENTS.

YOU CAN SEE THAT THE NEGATIVE ARGUMENTS SCORE IS DOWN A BIT THREE POINTS RELATIVE TO WHERE WE WERE AT THE INTERNAL BALLOT TESTS WHERE WE'RE STILL REIGNING AT THE END OF THE POLL AT 58 PERCENT, WHICH IS EIGHT POINTS HIGHER THAN THAT SIMPLE MAJORITY THAT'S REQUIRED FOR PASSAGE.

I WILL ALSO NOTE AGAIN, ZEROING IN AND YOU START LOOKING AT THESE RESULTS BY DIFFERENT SUBGROUPS.

I'M GOING TO FOCUS IN ON THE REPUBLICANS AGAIN, BECAUSE THAT'S THE GROUP THAT YOU WOULD EXPECT ACTUALLY IS THE MOST TAX AVERSE NATURALLY IS GOING TO BE THE MOST RECEPTIVE TO THESE NEGATIVE ARGUMENTS.

AT THE FINAL BALLOT TEST REPUBLICANS SUPPORT FOR THIS CHECK IN AT 48 PERCENT.

SO ALMOST HALF OF REPUBLICANS WERE ON BOARD AND SO THAT FOR A PATTERN OF WIDESPREAD AND CONSISTENT SUPPORT ACROSS SUBGROUPS CARRIES THROUGHOUT THE POLL.

NOW, THROUGHOUT THIS SURVEY UP TO THIS POINT, WE WERE FOCUSING ON A MEASURE THAT WOULD BE BASED ON ONE CENT RATE.

IF ANYBODY WAS A NO, WE'RE NOT SURE OF THE FINAL BALLOT TEST, WE ALSO ASKED THEM WHAT IF THE RATE WERE LOWER THAN THAT.

INSTEAD OF ONE CENT, IT WAS HALF-CENT.

WHAT WE SEE HERE, IN THE WHITE SLICE, WE HAD 58 PERCENT OF RESPONDENTS WHO ARE SUPPORTIVE OF THE ONE-CENT, AND SO YOU JUST ASSUME THEY'RE SUPPORTIVE OF HALF-CENT.

BUT WHEN WE LOWER TO HALF-CENT, WHAT IT SHOWS IS WE PICK UP ABOUT SIX POINTS OF ADDITIONAL SUPPORT.

IF YOU LOWER THE RATE FROM ONE CENT TO A HALF-CENT, WE CHECK IN WITH ABOUT 64 PERCENT SUPPORT AT THAT LOWER RATE, WHICH IS NOT A LOT.

I WILL TELL YOU THIS IS ONE REASON WHY WHEN YOU LOOK AROUND THE STATE AND YOU LOOK AT CITIES WHEN THEY GO FOR THESE TYPES OF THE MEASURES, THEY ARE ALMOST ALWAYS GOING AT ONE CENT IF THEY CAN, AND THE REASON IS OVERALL VOTERS TEND NOT TO BE THAT VERY SENSITIVE WHEN IT COMES TO SALES TAXES.

THE DIFFERENCE BETWEEN A ONE-CENT RATE AND A HALF-CENT RATE, YOU DON'T SEE BIG FLUCTUATIONS IN SUPPORT, UNLIKE OTHER TYPES OF TAXES WHERE THE RATES CAN BE VERY SENSITIVE.

UTILITIES USER TAXES, THEY'RE VERY SENSITIVE WHEN IT COMES TO THOSE.

[00:50:02]

PARCEL TAXES ARE VERY SENSITIVE.

FOR SALES TAXES, THEY'RE REALLY NOT.

WHAT WE'RE SEEING HERE IS WHAT WE SEE IN OTHER COMMUNITIES.

SIDEBAR HERE, SWITCHING GEARS FOR A MOMENT.

WE HAVE TWO QUESTIONS RELATED TO CANNABIS IN THIS POLL.

THE FIRST IS AFTER WE'VE REMINDED RESPONDENTS THAT UNDER CALIFORNIA LAW IT'S LEGAL FOR ADULTS TO USE CANNABIS FOR MEDICAL AND RECREATIONAL PURPOSES.

BUT THE LAW ALSO ALLOWS LOCAL CITIES LIKE CARLSBAD TO DECIDE WHETHER TO ALLOW CANNABIS BUSINESSES TO OPERATE IN THEIR BOUNDARIES, AS WELL AS THE TYPES OF RESTRICTIONS AND REGULATIONS IN PLACE ON CANNABIS BUSINESSES.

WE FIRST SIMPLY ASKED THEM, IN GENERAL, DO YOU THINK THE CITY OF CARLSBAD SHOULD ALLOW A LIMITED NUMBER OF CANNABIS BUSINESSES TO OPERATE IN THE CITY OR YOU ARE NOT SURE? WHAT YOU SEE HERE IS THAT [NOISE] THE VOTE WAS PRETTY EVENLY SPLIT ON THIS TOPIC.

YOU HAVE 41 PERCENT THAT SAID, YES, THE CITY SHOULD ALLOW CANNABIS BUSINESSES, YOU HAD 38 PERCENT WHO SAID NO, AND YOU'VE GOT ABOUT 21 PERCENT WHO WERE UNSURE.

WHAT WE TEND TO FIND IS THAT PEOPLE'S OPINIONS ABOUT CANNABIS BUSINESSES DEPEND ON THE TYPE OF BUSINESS.

WE FOLLOW THAT OVERALL QUESTION UP BY ASKING THEM TO TELL US WHETHER THEY WOULD SUPPORT OR OPPOSE THE CITY ALLOWING AN UNLIMITED NUMBER OF DIFFERENT TYPES OF CANNABIS BUSINESSES.

AT THE TIME, YOU SEE THERE ARE TWO CANNABIS BUSINESSES THAT A MAJORITY OF RESPONDENTS SAID, YES, I THINK THE CITY SHOULD ALLOW.

THAT'S RESEARCH AND TESTING OF CANNABIS PRODUCTS.

THEY'RE TOP [INAUDIBLE] 59 PERCENT WHO SAID THEY WOULD FAVOR ALLOWING THOSE.

MEDICINAL RETAIL CANNABIS DISPENSARIES FOUND 54 PERCENT SUPPORT.

ALL THE OTHER TYPES OF BUSINESSES THAT WE TESTED CAME IN BELOW THAT MAJORITY.

THEN FINALLY, WE ASKED THEM, IF CANNABIS BUSINESSES WERE ALLOWED IN CARLSBAD, "WOULD YOU SUPPORT OR OPPOSE THE CITY ESTABLISHING A TAX FOR CANNABIS-RELATED BUSINESSES TO HELP PAY FOR CITY SERVICES AND THE COST OF REGULATING CANNABIS BUSINESSES?" WHAT YOU SEE THERE IS OVERWHELMING SUPPORT FOR THAT, 74 PERCENT.

WHAT WE TEND TO FIND WHEN IT COMES TO CANNABIS IS THAT THE DEBATE ISN'T ABOUT SHOULD WE TAX THEM IF WE HAVE THEM? WE TEND TO HAVE A BROAD CONSENSUS AROUND THAT.

YES, WE SHOULD TAX THEM.

THE DEBATE CENTERS MORE ON SHOULD WE HAVE THEM IN THE FIRST PLACE.

[INAUDIBLE], I'VE GOT A COUPLE OF WRAP-UP SLIDES HERE.

I WANT TO CIRCLE BACK TO THAT OVERARCHING QUESTION I MENTIONED AT THE OUTSET WAS ONE OF THE MAIN MOTIVATORS FOR DOING REVENUE MEASURE FEASIBILITY STUDIES, WHICH IS TO ANSWER THAT QUESTION IN FEASIBILITY.

DOES A LOCAL SALES TAX MEASURE APPEAR FEASIBLE FOR NOVEMBER 2022 BALLOT IF THE COUNCIL WERE TO CHOOSE TO PLACE THE MEASURE ON THE BALLOT? THE ANSWER TO THAT IS YES.

THERE'S A NUMBER OF DIFFERENT CONDITIONS WITHIN THESE TYPES OF SURVEYS THAT WE WANT TO SEE IN PLACE FOR A MEASURE TO HAVE A GOOD CHANCE OF BEING SUCCESSFUL ON ELECTION DAY. WE SEE THOSE HERE.

THE FIRST IS THAT VOTERS HAVE A HIGH OPINION OF THE QUALITY OF LIFE IN CARLSBAD AND A HIGH OPINION OF THE CITY'S PERFORMANCE TODAY IN PROVIDING SERVICES.

THOSE TWO THINGS WE HAVE FOUND, GENERALLY SPEAKING, ARE POSITIVELY ASSOCIATED WITH VOTERS' WILLINGNESS TO SUPPORT REVENUE MEASURES TO PROTECT WHAT THEY HAVE.

IF I HAVE A HIGH OPINION OF MY COMMUNITY, I WANT TO KEEP IT THAT WAY.

IF I TRUST THE CITY GOVERNMENT WITH THEIR ABILITY TO PROVIDE CITY SERVICES AT A HIGH LEVEL, WHICH THE RESIDENTS CLEARLY DO, THOSE TWO THINGS TEND TO, IN MY EXPERIENCE, BE ASSOCIATED WITH SUCCESSFUL MEASURES.

SECONDLY, THAT THOSE TWO OPINIONS TOGETHER TRANSLATE TO A SOLID NATURAL SUPPORT FOR THE PROPOSAL.

WE'VE GOT 57 PERCENT OF VOTERS ON THE NATURAL, WHICH IS BASED ON THAT 75 VOTERS WHO WERE WILLING TO SUPPORT THE MEASURE.

IT'S ABOUT SEVEN POINTS ABOVE THE SIMPLE MAJORITY REQUIRED FOR PASSAGE.

WE SAW THAT ALL THE PROJECTS AND SERVICES THAT CAN BE FUNDED WERE POPULAR.

THOSE POSITIVE ARGUMENTS THAT WE CONVEY RESONATED AND BOOSTED THE SCORE UP TO ABOUT 61 PERCENT AFTER THE FINAL BALLOT TEST.

IMPORTANTLY, AT EACH POINT THAT WE CHECK BACK IN WITH RESPONDENTS OVER THE COURSE OF THE INTERVIEW, WE SAID, "NOW THAT YOU'VE HEARD MORE, HOW DO YOU FEEL ABOUT THIS PROPOSAL?" SUPPORT WAS WELL ABOVE THAT SIMPLE MAJORITY REQUIRED FOR PASSAGE, AND THAT WAS EVEN AFTER OPPOSITION ARGUMENTS.

ALL THAT TOGETHER, WE SEE NOT ONLY DOES IT SAY YOU HAVE A REASONABLE CHANCE OF SUCCESS, BUT YES, IF YOU WERE TO CHOOSE TO MOVE FORWARD WITH THIS, YOU HAVE A VERY GOOD CHANCE OF SUCCESS.

NOW THAT SAID, THERE WERE ALSO A FEW CHALLENGES.

KEEP IN MIND, SOME OF WHICH THAT POP UP OUT OF THE POLL, SOME OF WHICH ARE REALLY TAKING A STEP BACK AWAY FROM THE POLL AND THINKING ABOUT WHAT THAT NOVEMBER ELECTION CYCLE IS GOING TO LOOK LIKE.

WE DID SEE THAT SOME OF THE NEGATIVE ARGUMENTS WE TESTED GOT TRACTION.

NOT A LOT. THEY ONLY COOLED SUPPORT DOWN ABOUT THREE POINTS, BUT THEY DID GET SOME TRACTION.

THERE'S SOME POTENTIAL ONE INVALID FOR COMPETITION OR SPILLOVER DYNAMICS FROM OTHER TAX MEASURES THAT ARE GOING TO BE ON THE BALLOT.

IT'S RARE THAT YOU'RE THE ONLY MEASURE ON THE BALLOT.

YOU'RE SHARING THAT SPACE WITH SOMETHING ELSE.

SOMETIMES IT'S A STATE-LEVEL MEASURE, SOMETIMES IT'S A LOCAL MEASURE.

YOU ALWAYS WANT TO BE THINKING ABOUT WHAT ELSE IS GOING TO BE SHARING THE BALLOT AND WHAT IMPACT THAT MIGHT HAVE.

THEN FINALLY, THERE'S UNKNOWNS.

ALTHOUGH WE TESTED IN A PERIOD OF TIME WHERE INFLATION IS RUNNING,

[00:55:04]

THAT'S BAKED IN THE RESULTS, WE HAVE HIGH GAS PRICES, INTERNATIONAL CONFLICTS THAT WAS HAPPENING AT THE TIME WE DID THE POLL.

WE DON'T [INAUDIBLE] MAYBE INFLATION GOES DOWN, MAYBE INFLATION GOES UP.

THOSE TYPES OF UNKNOWNS IN THE FUTURE ARE THINGS THAT YOU NEED TO KEEP IN MIND WHEN YOU'RE THINKING ABOUT PUTTING A MEASURE ON THE BALLOT.

FINAL SLIDE HERE FOR ME.

AS PROMISING AS THESE RESULTS ARE AND THEY'RE PROMISING, I DO SEE THIS JOB, THE FEASIBILITY, IF YOU WERE TO CHOOSE TO GO FORWARD, IT'S ALSO IMPORTANT TO KEEP IN MIND THAT A POLL LIKE THIS IS A SNAPSHOT IN TIME.

IT IS NOT A CRYSTAL BALL.

LOOKING FORWARD TO ELECTION DAY AND SAYING YOU'RE GOING TO GET 57 PERCENT ON ELECTION DAY.

WHAT HAPPENS ON ELECTION DAY ISN'T DICTATED BY WHAT A POLL SAYS TODAY, IT'S BASED ON EVERYTHING THAT HAPPENS FROM THIS POINT FORWARD.

I MENTIONED THAT BECAUSE IT'S JUST A REMINDER THAT IF YOU'RE GOING TO PUT A MEASURE ON THE BALLOT, THAT YOU MAKE SMART DECISIONS ABOUT HOW YOU CRAFT THAT MEASURE SO THAT IT'S CONSISTENT WITH THE TYPE OF MEASURE YOUR COMMUNITY HAS TOLD YOU THEY'RE INTERESTED IN SUPPORTING, AND YOU'VE GOT TO PUT THE WORK IN TERMS OF COMMUNICATION.

IN TERMS OF SMART DECISIONS, I DO HAVE A COUPLE OF RECOMMENDATIONS THAT COME OUT OF THIS.

THE FIRST, IN TERMS OF THE PRICE TAG, THERE WAS SOLID SUPPORT FOR A ONE-CENT MEASURE.

I DON'T SEE THAT REDUCING THE TAX RATE TO A HALF PERCENT SIGNIFICANTLY IMPROVES THE MEASURE'S CHANCES FOR PASSAGE, WHICH IS WHY, AS I MENTIONED, IF YOU LOOK AROUND THE STATE, MOST CITIES THAT CAN DO IT, WILL GO OUT AT ONE AND GO OUT AT ONE PERCENT.

I THINK THAT THEY'VE CERTAINLY GOT SOLID SUPPORT FOR THAT HERE.

AS A GENERAL TAX, OBVIOUSLY, YOU'RE NOT EARMARKING THESE FUNDS FOR ANY SPECIFIC PURPOSE THAT WOULD TURN IT INTO A SPECIAL TAX.

BUT WHEN YOU LOOK AT VOTERS' PRIORITIES FOR HOW THEY WOULD LIKE TO SEE THE CITY SPEND THESE MONIES, AS I MENTIONED DURING THE PRESENTATION, IT REALLY COMES DOWN TO PUBLIC WORKS AND PUBLIC SAFETY, PARTICULARLY THOSE ITEMS YOU SEE THERE ON THE THIRD BULLET.

THEN FINALLY, IF YOU WERE TO CHOOSE TO MOVE FORWARD, COMMUNICATION'S GOING TO BECOME AN IMPORTANT PART OF THIS.

YOU WOULD WANT TO EXPAND THE CONVERSATION WITH THE COMMUNITY SO THAT YOU'RE MAKING SURE THAT, COME ELECTION DAY, THEY'RE NOT SURPRISED TO SEE THIS MEASURE ON THE BALLOT.

YOU DON'T WANT TO HAVE TO GO OUT AND TALK TO YOUR RESIDENTS, CONTINUE THIS CONVERSATION, START TO BUILD SOME AWARENESS AND UNDERSTANDING, AND HOPEFULLY, A CONSENSUS AROUND THE PROPOSAL.

THEN THAT LAST BULLET IS IMPORTANT NOT BECAUSE IT'S SOMETHING THE CITY CAN DO, BUT ONCE THE CITY WERE TO CHOOSE TO PLACE THIS MEASURE ON AN UPCOMING BALLOT, THAT STARTS TO BE AN ELECTION CYCLE.

THE CITY AT THAT POINT REALLY NEEDS TO TAKE A BACK SEAT AND NOT BE COMMUNICATING ABOUT THIS PROPOSAL.

INSTEAD, THERE NEED TO BE AN INDEPENDENT CAMPAIGN THAT WOULD GO OUT AND TALK WITH THE COMMUNITY AND CARRY THE BALL FORWARD DURING THAT ELECTION CYCLE.

WITH THAT, I END MY PRESENTATION.

I DON'T KNOW IF YOU WANT TO TAKE QUESTIONS ON THE WHOLE OF [INAUDIBLE], OR I JUST HAND TO THE NEXT PRESENTER.

LET'S GO TO THE NEXT PRESENTER AND THEN WE'LL COME BACK AND WE'LL HAVE AN OVERALL QUESTIONS [INAUDIBLE].

THANK YOU.

>> THANK YOU TIM.

I JUST HAVE TWO MORE BRIEF SLIDES HERE THAT I THOUGHT IT WOULD BE APPROPRIATE IF THERE'S ANY QUESTIONS OR DISCUSSION FOR THAT SECTION.

AS TIM ALLUDED TO IN HIS CONCLUSIONS RECOMMENDATIONS THERE.

THIS IS BASICALLY AN OVERVIEW OF THE PROCESS THAT MOST CITIES AND OTHER AGENCIES UNDERTAKE.

WHEN THEY'RE THINKING ABOUT RECOMMENDATION.

AS TIM MENTIONED, AND WE CAN WRITE THIS REALLY JUST AS AN ILLUSTRATION, AND IT'S NOT SPECIFIC PER SE, BUT AS TIM MENTIONED AT THE END, WHEN WE THINK OF THE STATE OF VALIDATIONS, WE THINK OF THE ELECTION PERIOD TIME WHERE THEY'RE SEEING A LOT SIGNS AND NEIGHBORS AND DIGITAL ADS, AND THAT KIND OF THING.

THOSE ACTIVITIES MAY NOT BE FUNDED BY ANY PUBLIC RESOURCES.

VOLUNTEERS HAVE TO DRIVE THOSE PROCESSES WITH PRIVATE FUNDING.

ONLY CITY CANNOT ADVOCATE IN FAVOR OF OR AGAINST ANY MEASURE LIKE THAT.

THERE ARE CERTAIN ACTIVITIES THAT WE THINK MAKES SENSE FOR GETTING THE SLIDE WHERE MEASURE IS PLACED ON THE BALLOT, THAT THE CITY'S CAN AND SHOULD DO.

I THINK IN THE INTEREST OF TRANSPARENCY IN THE GOVERNMENT BEFORE MAKING A FINAL COMMITMENT TO A BALLOT LIKE THIS.

THE FIRST IS THE FEASIBILITY STUDY, AND WE'VE HEARD ABOUT THAT NOW.

YOU'VE COMPLETED IT AT LEAST AS IT RELATES TO NOVEMBER 22, POTENTIAL LEDGER OF THESE POLL NUMBERS, IF WE WANTED TO GO IN THE FUTURE.

HERE, YOU PROBABLY WANT UPDATED POLLING.

IF WE'RE LOOKING AT 24, FOR EXAMPLE, INSTEAD OF 22, YOU PROBABLY WANT TO BRING DOCUMENT BARNEY BACK IN REFRESH YOUR NUMBERS AND THE ANION COUPLE OF YEARS.

THE SURVEY AS TIM POINTED OUT, HAS OUTSTANDING RESIDENT SATISFACTION NUMBERS AND INDICATORS.

IF THEY'RE STARTING TO EARTH BASICALLY A TWO TO ONE FAVOR THOSE WHO OFFERED AN OPINION ON THE TAX MEASURE.

MY QUALITY OF LIFE HERE AND OF POPULATION IS GENERALLY INDICATED IN THE CORPORATE NICER THINGS THAT ASSURE SERVICES AS YOU WANT IN LIFE, EVEN INFRASTRUCTURE WHICH OFTEN WE DON'T SEE IN BOOKS LIKE THIS.

YOU SAW VERY HIGH VOTER PREFERENCE FOR SUPPORTING FUNDING TO SOME OF THE PROJECTS, AND PROGRAMS THAT YOU USE YOUR GENERAL FUND FOR.

VERY HIGH NUMBERS PREPARED THAT AGAIN, SOME THINGS WE DON'T SEE UNDER CITIES.

THERE'S EVERY INDICATION THAT IN TERMS OF THE FEASIBILITY STUDY FOCUSED IN

[01:00:04]

THIS AREA WOULD SEE A MEASURING VISITING LOCAL FUNDING GLOBAL CREATING MEANINGFUL MEASURE, NOT AS A PARTISAN ISSUE.

I THINK THAT'S AN IMPORTANT DISTINCTION BECAUSE SO MUCH OF OUR POLITICS AND SO FAR AS IT IS.

THE FEASIBILITY STUDIES BASICALLY COMPLETE THE ENGAGEMENT STEPS.

AGAIN, THESE ARE THINGS THAT CITIES CAN AND SHOULD DO BEFORE ANY MEASURE IS ACTUALLY PLACED ON THE BALLOT.

TO ENSURE TRANSPARENCY, IT'S ONE THING PRODUCTIVE REGARDING BOTH THE 800 INTERVIEWS, THEY ARE THE VOTERS.

YOU HAVE 80,000 REGISTERED VOTERS IN THE CITY OF CARLSBAD.

YOU'D HAVE KEY CONSTITUENCY GROUPS LIKE CHAMBER OF COMMERCE AND BUSINESS GROUPS AND CLUBS AND PTAS AND ALL OF THOSE THINGS.

SO IT'S REALLY VALUABLE TO GET OUT AND HAVE SOME CONVERSATION, TWO-WAY DIALOGUE, WHERE YOU PRESENT THE IDEA YOU HEAR FROM PEOPLE.

STAFF CAN EVALUATE AND CONSOLIDATE PEDAL WHAT THAT FEEDBACK IS LIKE.

SOMETIMES THAT EVEN HAPPENS BEFORE MUMBLING AVAILABLE TO ALL VOTERS.

SO EVERY REGISTERED VOTER HAS A CHANCE TO WEIGH IN IF THEY'RE IMPORTANT TO YOU ON SOMETHING LIKE THIS INSERT AND TRANSPARENCY.

YOU GUYS NECESSITY HAVE A CULTURE OF DOING PUBLIC ENGAGEMENT AS WELL AS BETTER THAN ANY CITY I'VE SEEN IN CALIFORNIA.

YOU DO A LOT OF THIS, AND SO IT'S SOMETHING THAT THEY THINK IS PART OF YOUR CULTURE.

AND OBVIOUSLY IN THIS COUNTY YOU HAVE TAXPAYERS ASSOCIATION, THE OTHER TAXPAYERS, WHICH IS A VERY CONSTRUCTIVE PROCESSES EXTRACTED GROUP.

THEY LOOKED AT TAX MEASURES.

THEY HAVE A VERY CLEAR SET OF STEPS THAT THEY WILL GO THROUGH AND EVALUATE SALES TAX MEASURES FOR OTHER POTENTIAL RATHER THAN MEASURES.

THEY ASKED TOUGH QUESTIONS THAT NEED UP TO 3 ANSWERS AS WE COULD PROCESS AND WE ENCOURAGE ALL OUR CLIENTS TO GO THROUGH IT IF THEY'RE CONSIDERING ABOUT LATER.

THEN THERE IS THE STEP OF ACTUALLY REPAIRING AND AN ACTUAL ORDINANCE FINALIZING RATES AND AMOUNTS, WHEREAS WE SHOULD ORGANIZE LANGUAGE OF ANY CITIZEN OVERSIGHT COMMITTEE OPTIONS.

OFTEN THESE GENERAL FUND ENHANCED MEASURES BECAUSE THEY ARE SIMPLY GENERAL CLIMATE AND RESTRICTION MONEY.

MANY CITIES CONSIDER OVERSIGHT COMMITTEES.

SCHOOL BONDS ARE REQUIRED TO HAVE, THESE CITIES ARE NOT, AND SO YOU'D HAVE SOME OPTIONS LIKE, WHAT ADVISORY OVERSIGHT MECHANISMS YOU MIGHT WANT TO INCLUDE OR SOMETHING LIKE THAT.

THIS IS ALSO THE TIME WHEN WE MAKE VITAL DECISIONS ABOUT WHETHER ANYTHING ELSE THAT YOU'RE GOING TO PUT ON THE VALID.

GENERALLY SPEAKING, WHEN WE HAVE STUDIES WITH REVENUE MEASURES LIKE THIS ON THE BALLOT, WE DON'T RECOMMEND HAVING A CO-PILOT MEASURE, PARTICULARLY RELATED TO SPENDING OF ANY KIND, BECAUSE THAT CAN BE VERY CONFUSING TO VOTERS IN TERMS OF TRYING TO PASS TWO MAJORS AT THE SAME TIME, BUT EVERY SITUATION IS UNIQUE.

THEN FINALLY, WE DIDN'T PUT A PROSPECTIVE, POTENTIAL TIMELINE TOGETHER.

THIS IS A LITTLE BIT MORE SPECIFICALLY AND CANNOT DO NEED TO RECOGNIZE IS THE PART OF A LONGER CONVERSATION WE'VE BEEN HAVING.

SO THIS IS ONLY IF YOU WERE TO CONSIDER SOMETHING, YOU KNOW, THERE WERE 2022.

AGAIN, RECOGNIZE US SCOPE AND ONGOING DISCUSSION WE'VE BEEN HAVING.

BUT CONSIDERING THESE ARE FAVORABLE RESULTS, AS TIM SAID, IN THE MONTH OF MAY, DEVELOP UP INFORMATION FOR YOUR WEBSITE, DID YOUR TRANSPARENCY AS MENTIONED, AND HELPS YOU BEGIN IN THE PROCESS OF COMMUNITY OUTREACH ENGAGEMENT, AS I DESCRIBED BEFORE, TO GO, INCLUDING THE CURRENT TAXPAYERS OF A GYM, WE RECOMMEND NAILING A SHORT SURVEY RAISED THEIR VOTERS, RETURN THE CAR IN AN ONLINE OPTION.

THIS IS A NON-SCIENTIFIC SURVEY, WHAT DR. MCCARTHY HAS JUST PRESENTED AS SCIENTIFIC DATA, WHAT YOU'D GET FROM GENERALS AND THE MEDIATOR IS NOT SCIENTIFIC, BUT IT IS VERY VALUABLE TO HAVE THAT OPTION FOR TWO-WAY FEEDBACK SO THAT CITIZENS AND RESIDENTS AND TELL YOU WHAT THEY THINK, AND THEY CAN ASK QUESTIONS.

GENERALLY SPEAKING, WE FIND THAT THE DATA YOU GET BACK IS REALLY NOT THAT DIFFERENT FROM A SCIENTIFIC SURVEY, BUT IT'S REALLY IMPORTANT TO HAVE THAT FEEDBACK MECHANISM, THAT TRANSPARENCY.

THEN DURING THAT SUMMER TIME YOU EVALUATE THE ONGOING COMMUNITY FEEDBACK THAT COMES FROM BOTH HISTORICAL CONVERSATIONS OR MEETINGS WITH FRUITS.

AND AGAIN, THAT DIALOGUE, ANYTHING WE GET BACK FROM RESIDENCE IN THE FORM OF AN ONLINE SURVEY AND RETURN CARDS OR ANY OTHER INPUT YOU GET.

COOK ALL THAT TOGETHER WITH DR. MCCARTHY'S RECOMMENDATIONS AND ENCODE RESULTS INTO COORDINATES OR RESOLUTION LANGUAGE.

PRIOR TO AUGUST 12TH, YOU WOULD NEED TO PLACE A MEASURE ON THE BALLOT IF YOU WERE RUNNING A VALID IN NOVEMBER OF 2022, AND AGAIN, IT'S ONLY POTENTIAL TIE ONE, AND JUST TO ILLUSTRATE THE PROCESS.

SO THAT'S THE END OF MY PORTION, AND I BELIEVE DR. MCCARTHY PORTION SO AGAIN, WHAT WE CAN CHOOSE NOW WE CAN DO THAT AND WE CAN CIRCLE BACK IN HERE [INAUDIBLE].

>> IN A FEW MINUTES.

>> GREAT. WELL, THANK YOU, JARED AND WE APPRECIATE THE WORK, AND TIME SPENT HERE, AND I ALSO WANT TO THANK COUNCIL FOR ALLOWING US TO GATHER THIS DATA AND ACTUALLY PRESENT THE STAGE.

SO IN LOOKING AT THE OPTIONS FOR TODAY'S ACTIONS, OPTION 1, ACCEPT THE REPORT, TAKE NO FURTHER ACTION AT THIS TIME.

OPTION 2 IS TO DIRECT STAFF TO GATHER ADDITIONAL INFORMATION.

AND THIRDLY, DIRECT STAFF TO TAKE THE NEXT STEP IN THE PROCESS OF PUTTING A MEASURE ON THE BALLOT ON THE NOVEMBER 2022 BALLOT.

[01:05:02]

COUNCIL MAY ALSO WISH TO DEFER THIS DISCUSSION IN ANY OF THESE DECISIONS TODAY UNTIL AFTER YOU'VE HEARD OUR CAPITAL IMPROVEMENT PROJECT PRIORITY DISCUSSION.

AT THIS TIME THERE I WILL HAND IT OVER BACK TO YOU. THANK YOU.

>> AT THIS TIME, I THINK I'D LIKE TO DO OTHER COMMENTS, SO I'LL TURN IT OVER TO THE CLERK.

>> THANK YOU JARED. I THINK I'D LIKE TO START BY ASKING HONESTLY, UNDER NORMAL IF THERE ARE ANY HONESTY IN THIS LOCATION [INAUDIBLE] [BACKGROUND] YES. CAN YOU HEAR ME? THANK YOU.

PART OF THE COUNCIL MEMBER UNDER AN RBC WITH MOST SENIORS, FIRST SPEAKER IS CHRIS WRIGHT, FOLLOWED BY ABIGAEL [BACKGROUND]

>> GOOD MORNING COUNCIL.

[INAUDIBLE] EACH CONSULTANTS SURVEY RESULTS.

AS A VOTER, I'VE NEVER FELT SO MANIPULATED IN MY LIFE.

HERE IS A STATEMENT FROM THE CONCLUSIONS.

THIS MEASURE WOULD BE ESTABLISHING ONE SALES TAX FOR MY FUNDING FOR GENERAL CITIZEN SERVICES SUCH AS FIRE PROTECTION, PARAMEDIC, AND 911 EMERGENCY RESPONSE, POLICE PATROLS AND CRIME PREVENTION, MAINTENANCE OF THE STREETS, CAR SURFACE FEATURES, INFRASTRUCTURE, TRAFFIC MANAGEMENT, ADDRESSING [INAUDIBLE] AND OTHER CITIZEN SERVICES.

THAT IS SOMETHING WE WANTED TO CARE ABOUT IN OUR CITY.

HOWEVER, WE HAVE THE EXPENDITURE REPORT THAT I PROVIDED TO COUNCIL THAT SAYS WE ARE ALREADY SPENDING 45 PERCENT ACCORDING TO THIS YEAR'S GENERAL FUND EXPENDITURES OF [INAUDIBLE] [NOISE] 82.3 MILLION IS ALREADY BEING SPENT ON PUBLIC SAFETY.

I THINK THAT THAT'S SOMETHING THAT OUR COMMUNITY ALWAYS SUPPORTS OUR PUBLIC SERVICE AND ACQUIRING POLICE, BUT THAT'S SOMETHING THAT [INAUDIBLE].

MANY PROJECTS AND PLANNING HAVE REMEMBER GONE THROUGH PUBLIC REVIEW, WE ARE ALL ARE STILL FUNDING THE MINI GOLF COURSE.

I DO SEE THE [INAUDIBLE] WHICH HAS BEEN APPROVED BUT WITHDRAWN FROM EACH VOTE.

AS A 40 YEAR RESIDENT, I'M SEEING FISCAL RESPONSIBILITY [INAUDIBLE] BUT NOW IT HAS BEING DECIDED WITHOUT PUBLIC REVIEW THAT WE WANT A TRENCHING OF RETURNING TAX WERE 400-600 MILLION.

[NOISE] THEN HERE PART THAT NORMALLY ONCE AT A COST OF 60-85 MILLION [INAUDIBLE] THE REPORT.

THAT'S WHERE IT HAS THOSE FIGURES WHAT HAPPENED TO THE RESPONSIBILITY OF THE CITY TO LISTEN TO VOTERS? INSTEAD, THIS SURVEY IS MISREPRESENTING TO THE PUBLIC, THAT PUBLIC SAFETY NEEDS FUNDING.

ACCORDING TO THE GENERAL FUND EXPENDITURES. AS WE SAID.

I DO NOT WORK IN SALES TAX INCREASE RATHER WE CUT BACK ON THE PROJECTS THAT HAVE NOT YET BEEN SUBJECT TO PUBLIC REVIEW.

STOP HIRING CITY MANAGERS AT SIX-FIGURE SALARIES.

THE IDEA IS THAT THIS WOULD BE A GENERAL TAX THAT WOULD BE VOTED UPON IF THE COUNCIL APPROVED FOR GENERAL GOVERNMENT PURPOSES, WHICH CAN BE USED BASICALLY TO FIND SOME OF THESE THINGS THAT THE CITY AND THE VOTERS, HAVE NOT APPROVED YET [INAUDIBLE].

BUT THANK YOU VERY MUCH.

>> [INAUDIBLE] SPEAKERS AND THE AUDIENCE [INAUDIBLE].

>> GOOD MORNING COUNCIL, MY NAME IS [INAUDIBLE], I'M 28, AND A NEW RESIDENT AT CARLSBAD.

I DON'T APPROVE OF THIS TAX FOR THE CITIZENS OF CARLSBAD FOR $20 MILLION.

[01:10:01]

WHEN YOU AS A CITY ARE MISMANAGING OUR FUNDS, YOU'RE SPENDING MORE THAN YOU ARE MAKING.

WE ARE LOOKING AT EFFECTIVE PEOPLE THAT ARE ON FIXED INCOMES THAT ARE ON LOW.

LOW-INCOME RESIDENTS ARE STRUGGLING JUST FOR GASOLINE AND FOOD, INTO THEIR CARS AND INTO THEIR HOMES.

IT'S JUST UNBELIEVABLE THAT YOU COULD BE ASKING FOR THIS, ASKING THIS TO BE ON A VALID IN NOVEMBER WHO ARE ALREADY EXPERIENCING INFLATION AND WE'VE SPENT WHAT WE HAVE A STATE THAT HAS ONE OF THE MOST BIGGEST TAXES SYSTEMS LEFT AND RIGHT.

YOU CAN'T DO THIS TO US AGAIN.

YOU'RE DESTROYING YOUR POLICIES AND THESE ACTIONS THAT YOU HAVE VOTED ON DAYS THAT WE ARE DESTROYING CERTAIN LIKELIHOODS BUSINESSES.

IT'S PERSONAL AT THIS POINT, MY DAUGHTERS HAVE LEFT, MY FRIENDS HAVE LEFT, AND THERE ARE MORE PEOPLE THAT ARE LEAVING CALIFORNIA THAT WERE HARDWORKING TAXPAYERS.

THIS IS JUST IMPOSSIBLE.

THANK YOU FOR ALL THE PRESENTATIONS AND EVERYTHING.

IT JUST VERIFIED TO ME THAT YOU GUYS ARE IN THE WRONG ROAD IN THE WRONG DIRECTION.

MRS. WRIGHT, SHE HIT IT OFF ALL ON THE DOCK.

YOU GUYS HAVE JUST MISMANAGING THE FUNDS OF THE CITY.

NOTHING IN THIS PRESENTATION IS ABOUT HEARD ANYTHING OR ANY KIND OF SACRIFICE THE GOVERNMENT IS GOING TO DO FOR US.

IN OTHER WORDS, POSTPONING PROJECTS, IN OTHER WORDS, SACRIFICING YOUR NEEDS.

COMPARED TO THE CITIZENS OF CARLSBAD.

YOU HAVE TO START ACTING RESPONSIBLE WITH OUR MONIES.

WE'VE RUN THE CITY VERY WELL IN THE PAST AND NOW IN THE RECENT YEARS NOW YOU'RE ASKING FOR MORE MONEY.

WE WERE HEALTHY, WE WERE A VERY HEALTHY CITY BEFORE CERTAIN POLICIES [INAUDIBLE].

THE LAST FIVE YEARS, I'VE STARTED AT WORK A LITTLE PAST.

I DON'T THINK THERE'S A NEED TO HAVE TRAIL RENDERER PROGRAM.

I DON'T KNOW WHO THESE PEOPLE ARE.A DIVERSITY EQUITY INCLUSION PROGRAM.

ALL THESE CONSULTANTS THAT YOU EITHER LISTEN TO OR DON'T LISTEN TO.

COMMUNITY TRUST ELECTRICAL, THERE'S JUST SO MANY PARAGRAPHS HERE THAT YOU HAVE LISTED THAT YOU HAVE TO SPEND YOUR MONEY, OUR MONEYS ON AND JUST SAY SHAME ON YOU ALL.

SHAME ON YOU FOR, FOR MISMANAGING OUR FUNDS AND TRYING TO GET NEAT VALID TO INCREASE OUR SAVINGS TAX IN THE NEXT ELECTIONS.

[INAUDIBLE].

SO PLEASE [OVERLAPPING] [INAUDIBLE]. DON'T DO THIS.

>> THE NEXT SPEAKER IS [INAUDIBLE], FOLLOWED BY [INAUDIBLE].

>> HELLO ALTHOUGH DOLLAR SIGNS FLOWING IN FROM MARIJUANA DISPENSARIES MUST BE ANTI STATE, I AS FLORIDA COUNCIL OF STAFFED FIRMLY REJECTED LEGALIZING THEM.

THE NARRATIVE DRIVEN BY PRO-LEGALIZATION GROUPS.

IT'S BEEN READILY LEGALIZED AND OMISSIONS.

THE TRUTH IS MARIJUANA IS HARMFUL.

THC AND CBD ARE TWO MAIN COMPONENTS OF MARIJUANA.

THC IS PSYCHOACTIVE AND PRODUCES THE HIGH.

CBD IS NOT PSYCHOACTIVE AND THEY WILL HAVE SOME NET BENEFIT, SUCH AS CANCER-RELATED WASTING.

HOWEVER, MOST CANVAS CONSUMED TODAY, WHETHER RECREATIONAL OR MEDICAL, HAS LOTS OF THC AND ALMOST NO CBD.

THE ACTUAL MADAM THC IN A TYPICAL 1970S JOINT WAS NO MORE THAN FIVE MILLIGRAMS. TODAY, MARIJUANA IS STRONGER, APPROXIMATELY TWENTY-FIVE PERCENT IS THC.

SO A SINGLE JOINT CAN CONTAIN MORE THAN 100 MILLIGRAMS OF THE DRUG.

IN THE 2014 CASE OF A MOTHER WHO STABBED TO DEATH EIGHT CHILDREN, THE JUDGE RULED THAT SHE WOULD CRY, NOT STANDARD TRIAL FOR MURDER BECAUSE SHE WAS SUFFERING CANNABIS [NOISE] INDUCED SCHIZOPHRENIA.

JUDGE DALTON WROTE, "ALL THE PSYCHIATRISTS THOUGHT THE LONG-TERM USE OF CANNABIS CAUSED THE SCHIZOPHRENIA DISLIKING AND MARIJUANA SCHIZOPHRENIA AND VIOLENCE IS ONE CANVAS APPLICANTS ARE DESPERATE TO HIDE AND NOW TWO OF PEER-REVIEWED RESEARCH IN TOP MEDICAL JOURNALS SHOWS MARIJUANA CAN CAUSE OR WORSEN SEVERE MENTAL ILLNESS.

TEENAGERS WHO SMOKE MARIJUANA REGULARLY ARE ABOUT THREE TIMES AS LIKELY TO DEVELOP SCHIZOPHRENIA,

[01:15:04]

THE MOST DEVASTATING PSYCHOTIC DISORDER.

SOME ARGUE FOR MEDICAL MARIJUANA TO EASE PAIN, BUT THE PAIN STUDIES STILL USUALLY COMPARE THE DEGREE OF RELIEF TO STANDARD PAIN RELIEVERS LIKE [INAUDIBLE] ONLY TO A PLACEBO THERE'S ALSO THE FALSE NARRATIVE THAT MARIJUANA PREVENTS OPIOID USE.

A 2018 PAPER IN THE AMERICAN JOURNAL OF PSYCHIATRY SHOWED PEOPLE WHO USE CANNABIS WERE THREE TIMES AS LIKELY TO USE OPIATES.

THE LINK BETWEEN CANNABIS USE AND VIOLENCE IS REAL.

ALTHOUGH WITH ALCOHOL, THE DRUG THAT PSYCHOTIC PATIENTS USE IS CANVAS.

[INAUDIBLE] SCHIZOPHRENIA [INAUDIBLE] FOUND 70 PERCENT OF PEOPLE WITH SCHIZOPHRENIA HAD BEEN DIAGNOSED WITH CANNABIS USE DISORDER.

I WONDER HOW MANY OF THE CARLSBAD HOMELESS HAVE ALCOHOL OR INCAPABLE USE ISSUES? THE SAFETY OF OUR COMMUNITY IS AT GREATER RISK WITH MARIJUANA USE, AND THE MENTAL HEALTH OF OUR TEENS IS UNDENIABLY AT RISK.

NO NEW TAXES, NO MARIJUANA DISPENSARIES.

YES TO BUDGET AND [INAUDIBLE] COUNSELING, EQUITY FOR [INAUDIBLE]. [OVERLAPPING]

>> [INAUDIBLE] YOUR TIME. THE NEXT SPEAKER IS MY [INAUDIBLE], FOLLOWED BY DON CHRISTIANSEN.

[NOISE]

>> HERE IS MICHAEL [INAUDIBLE], 25 YEARS RESIDENT OF CARLSBAD.

JUST WANTED TO MENTION THAT INFLATION IS JUST ANOTHER TAX.

WHAT WE'RE GOING THROUGH NOW I BELIEVE, I HOPE I'M WRONG.

INFLATION IS GOING TO BE MUCH WORSE.

I DON'T KNOW, MAYBE ONE PERCENT, MAYBE IT DOESN'T MATTER.

IF YOU'RE TAXING ONE PERCENT MAYBE WE'RE LOOKING AT A LOT WORSE COMING DOWN THE ROAD.

I THINK BY AUGUST THAT IT'S NOT GOING TO HAVE MUCH ANYWAY.

BUT I DON'T THINK THE TAXES THE RIGHT SOLUTION, I DON'T LIKE MARIJUANA, DEFINITELY NOT MARIJUANA, I'M NOT CONFUSED STABLE ON CARLSBAD BECAUSE OF OUR CHILDREN.

CHILDREN SHOULD NOT BE EXPOSED TO THE MARIJUANA INDUSTRY IN CARLSBAD.

IF YOU ARE 25 YEARS AND WE'RE NOT THAT KIND OF COMMUNITY.

I DON'T KNOW HOW MUCH MORE TO SAY.

WHAT I SEE IS A LOT OF MISMANAGEMENT.

IT'S A LOT LIKE CORPORATIONS.

THEY GET TOO BIG TO MANAGE.

I WORKED WITH A LOT OF CORPORATIONS, ALSO STARTUPS.

YEAH, I SEE WHAT I BELIEVE IN GOVERNMENT, WHAT'S HAPPENING IT'S TOO BIG ADVANTAGE AND THEY'RE JUST LOSING AWAY.

THEY'RE NOT MANAGING AND RUNNING CORRECTLY.

A LOT OF PEOPLE SUFFERED BECAUSE OF IT.

>> THE NEXT SPEAKER IS DONALD CHRISTIANS FOLLOWED BY [INAUDIBLE].

>> GOOD MORNING, COUNCIL, STAFF, FELLOW CITIZENS.

MY NAME IS DONALD CHRISTIANS, I'M A DECENTRALIZED RENEWABLE ENERGY ADVOCATE WITH THE EMPHASIS ON DECENTRALIZED.

LET ME TAKE THIS FROM A CITY LEVEL TO A HOME LEVEL.

[NOISE] MY FAMILY AND I ARE LOOKING TO HAVE MORE SPENDABLE INCOME.

WE LOOK AT SOLAR, THE LEAD, HAVE SORTED IT OUT UNLESS YEARS AGO, YEARS AGO WE'VE PENCILED OUT WHERE WE CAN STOP PAYING SOME OF THE HIGHEST ELECTRIC UTILITY RATES IN THE UNITED STATES OF AMERICA TO A LOCAL INVESTOR UTILITY MONOPOLY, AND HARVEST OUR OWN POWER AT HOME.

COUPLE OF YEARS LATER, WE GOT ELECTRIC CAR.

THANK YOU, PETER HARVEY, HEADS UP ON THAT.

NOW, WE ARE GENERATING OUR OWN POWER NEEDS, NOT ONLY FOR OUR HOME BUT FOR OUR VEHICLE.

THAT WILL TRY TO BEND UP TO THE CITY LEVEL, BUT THE CITY HAS LOTS ROOFTOPS, LOTS OF PARKING LOTS, AND THEY ALSO HAVE A I SEE BY THE PROJECT MESS THE MERKLE RESERVOIR 57 ACRES, I BELIEVE OF LAND IS IDEALLY SUITED FOR A SOLAR FARM.

RATHER THAN TAXES, I WOULD THINK GENERATING MORE REVENUE BY MAKING BETTER INVESTMENTS WOULD BE A BETTER APPROACH.

SITTING ON MILLIONS AND MILLIONS OF DOLLARS IN RESERVES I IMAGINE ARE BASICALLY GENERATING HIPPIES OF RETURN.

WHY NOT TAKE SOME OF THOSE RESERVES AND BE PROACTIVE AND INVEST IT IN SOLAR ELECTRIC AND ELECTRIC, FIGHT OR FLEE.

I KNOW THE CITY IS GOING TO HAVE AT LEAST A COUPLE OF SOLAR PROJECTS.

I IMAGINE THIS A GOOD BASELINE INFORMATION THERE TO WORK WITH.

IT CAN GO IN.

THOSE MEMBERS ARE AVAILABLE, BUT PRICES HAVE GONE DOWN OVER THE YEARS.

[01:20:02]

SOLAR IS BECOMING MORE AND MORE COMPETITIVE.

CHECKING MY NOTES. LOCAL JOBS, LOCAL BUSINESS OPPORTUNITIES. HERE'S WHY.

YEARS AGO, OUR TAX DOLLARS ARE GREAT CARE DOLLARS SPENT OVER A BILLION DOLLARS TO BUILD BASICALLY A GLORIFIED EXTENSION CORD TO GET POWER FROM OUT OF THE DESERT AND AGENCY ELECTRICAL.

WELL, BRINGING IN POWER FOR THE DESERTS ACROSS THE MILLION DOLLARS REQUIRED A HUGE TRANSITION.

THE OTHER ALTERNATIVE, IN MY OPINION, RATHER THAN MORE EXTENSION CORDS, EXPANSIVE EXPRESSION CORDS, DO IT LOCALLY, CREATE LOCAL JOBS IN LOCAL BUSINESS OPPORTUNITIES AND ALSO, THERE'S MORE RESILIENCE INVOLVED.

SOME COMMUNITIES ARE DOING MICROCOMPUTERS.

USE SD YEARS AGO AS A MICROCOMPUTER.

CAMP PENDLETON TOWARD THE NORTH, HAS A MICROGRID.

BRITAIN SAYS MICRO-GRID, THERE'S ALL KINDS OF MONEY [INAUDIBLE].

>> THAT BEING CLOSING TIME. THE NEXT SPEAKER IS JUNE SINCLAIR [BACKGROUND].

>> HI, I'M JUNE SINCLAIR, 33 YEARS, GIRLS FAN.

I WAS LOOKING AT THE AGENDA PAPER LAST NIGHT.

I CAME AWAY A SOUND.

IF I GOT THIS RIGHT, THE SITTING PHONE SURVEY, BASICALLY OFFER TWO OPTIONS, TO RAISE TAXES FOR BRINGING IN [INAUDIBLE].

OR WHAT DO YOU EXPECT PEOPLE IN AN AREA LIKE THIS, THE BRING? THEY'RE NOT GOING TO LIKE BRINGING POP INSTANCES.

THE FACT THAT WE HAD TO PAY SOMEBODY TO TELL US THIS SEEMS LIKE A WASTE OF MONEY TO BEGIN WITH.

BUT THERE'S A LOT OF OPTIONS THAT ARE AVAILABLE FOR DEALING WITH DECREASING REVENUES.

BESIDES RAISING IN TAXES, FOR EXAMPLE, GO ON SPENDING DIET, DROPPED SOME FOOD PROJECTS, CUT BACK ON OVERTIME, YOU GO TO CALIFORNIA CITIZENS ARE THERE STIPENDS, FLIGHT STATE ON ONE AND MANDATES THEY'RE GOING TO COST US A LOT OF MONEY.

THE OTHER RAISED ISSUE IS TAXES, FOLLOW LEANER BUDGET THAN TWO PERCENT MAYBE FIVE PERCENT REDUCTION.

DO ANYTHING, EXCEPT TRIBAL REGRESSIVELY EXTRACT MONEY FROM THE CITIZENS WHO WERE ALREADY PAYING A LOT MORE THAN THEY PAID FOR EVERYTHING TWO YEARS AGO.

THIS IS CARRY OFF RATHER WE EXPECT MORE, IT'S TIME TO BE CREATIVE.

HERE'S IS A TOWN FULL OF EXTREMELY WELL-EDUCATED, TALENTED PEOPLE WHOSE IN COMMUNITY ARE FULLY SUPPORTED, OPEN MUNICIPALITY IN WHICH THEY RESIDE.

WHY NOT TAKE ADVANTAGE OF SOME OF THESE RESOURCES? WE HAVE ONE OR 2,000 VOLUNTEERS ON RECORD ALREADY IN THE VOLUNTEER DATABASE.

UTILIZE YOUR HOMEGROWN TOWN BEFORE SPENDING MONEY ON CONSULTANTS, NONE OF WHOM EVER SEEN TO BE FROM HERE.

LET'S USE WHAT WE HAVE HERE.

LET'S GET RID OF THE SQUARE CAP BY CLAIMING THAT THE PLACES THAT WE WILL HAVE TO CUT ON OUR SAFETY SERVICES AND OTHER THINGS THAT THE CITIZENS REALLY LIKE.

LET'S TALK ABOUT CUTTING PREFERENCE.

OUR NEW CITY HALL, A LINEAR PARK OR ANY BUILDUP ALONG THE CYLINDER, POSTAL SERVICE.

KEY PAIN OR FINE.

POLICE OFFICERS, FIRE PERSONNEL, EMTS, DROP LEGAL FEES.

DON'T HIRE LAWYERS TO FIGHT WITH CITIZENS WHEREVER THE AIRPORT OR BARRIO TRAFFIC LIGHTS OR WHATEVER.

STAY OUT OF PORT, SPEND WISELY IS WHAT YOU'RE PAID TO DO. THANK YOU ALL.

>> THAT INCLUDES [INAUDIBLE].

>> OKAY. LET'S GO TO QUESTIONS.

I WOULD LIKE TO START, WHERE SHOULD I BEGIN.

WELL, I THINK I HAVE A FIRST SHOT AND THAT WILL BE GOOD.

ANY OF YOU HAVE QUESTIONS? DO WE GET TO PETER'S VOLUME UP?

>> YEAH, LIKE WE SAID BEFORE [INAUDIBLE].

>> HANG ON JUST A SECOND PETER.

HANG ON JUST A SECOND.

OKAY, THAT'S RIGHT, GOOD PETER.

GO AHEAD.

>> CAN YOU HEAR ME?

>> YES.

>> OKAY, SUPER. [INAUDIBLE] .

>> NOT HAVING BEEN THERE,

[01:36:49]

BUT HAVING INSIGHT TO SOME OF THAT.

[01:36:54]

I DON'T BELIEVE THERE WAS A MEASURE PROPOSED DURING THAT TIME.

[01:36:58]

I KNOW THERE WAS SOME REDUCED STAFFING THAT OCCURRED.

IN TERMS OF REALLY TIGHTENING THE BELT IF THE STRUCTURE FUNDS AS WE DID IN THE LAST COUPLE OF YEARS AROUND COVID, WE WEREN'T ABLE TO SHIFT THE MONEY INTO THESE OTHER POTS TO BE ABLE TO SET ASIDE FOR THE FUTURE.

I THINK IT WAS REALLY BRINGING DATA TO COUNSEL TO ALLOW THEM TO MAKE THE BEST INFORMED DECISION AT THAT TIME, AND THAT'S WHAT I CAN PROVIDE YOU WITH.

>> THEN TO ALSO ADD COUNCIL MEMBER, ONE OF THE OTHER THINGS HERE IF YOU REMEMBER FOR THE RECESSION, WHAT IT REALLY BROUGHT ABOUT WAS CALLS FOR PENSION REFORM.

THERE WERE ADDITIONAL TIERS THAT WERE PUT IN PLACE AS FAR AS THE RETIREMENT SYSTEM.

THERE ALSO WAS SOMETHING CALLED THE BECKER UTILITY STUDY WAS IN THE MID-2000S, ALL THE RAVE WAS MANAGE COMPETITION AND EVERYONE EXPECTED IF ONLY GOVERNMENT WOULD ADOPT A MORE BUSINESS-LIKE MODEL, THEN IT WOULD BE ABLE TO OPERATE MORE AS A BUSINESS.

UNFORTUNATELY, THOSE MODELS HAVE BEEN PROVEN TO BE INACCURATE AS FAR AS TRYING TO DO THOSE MANAGED COMPETITION PROGRAMS BECAUSE AGAIN, WE'RE GOVERNMENT, SO WE DON'T TIP IN TYPICALLY IN GOVERNMENT SECTOR BECAUSE AGAIN, WE ARE NOT GENERATING A PROFIT.

THAT'S WHERE THERE'S THAT ITEM THAT REALLY IT DOESN'T MEASURE WELL AGAINST A BUSINESS SETTING.

THERE WERE, AGAIN, THOSE TYPES OF STRATEGIES THAT WERE EMPLOYED.

ALSO, THERE WAS A RELIANCE ON PART-TIME EMPLOYEES THAT WERE RABID IN HIRING FULL-TIME STAFF.

THE CITY OF CARLSBAD EMBARKED PARTICULARLY IN 2009, 2010, '11,'12 AND THEY REALLY RELIED HEAVILY ON THE LABOR MARKET, WHICH WAS SUPPORTIVE AT THE TIME OF PART-TIME EMPLOYEES.

>> GENTLEMEN, THANKS, AND STAFF FOR THE GREAT PRESENTATION AND FOR THE WORK.

THAT CONCLUDES MY QUESTIONS.

I DO HAVE COMMENTS LATER ON.

>> THANK YOU. LET'S GO TO COUNCIL MEMBER ACOSTA.

>> THANK YOU, AND THANK YOU TO THE STAFF AND TO THE CONSULTANTS FOR THE PRESENTATIONS TODAY.

I DEFINITELY THINK THAT WE'RE HAVING A REALLY SERIOUS DISCUSSION ABOUT REALLY IMPORTANT MATTERS FOR WHICH THE COUNCIL HAS TO TAKE A VERY RESPONSIBLE APPROACH.

WE'RE TALKING ABOUT HOW WE SPEND OUR MONEY, THE TAXPAYER MONEY IN THE COMMUNITY IS ONE OF THE MOST SERIOUS PARTS OF THE JOB.

I'M TAKING IT VERY SERIOUSLY, AND I'M LISTENING TO EVERYTHING, AND I APPRECIATE THE COMMENTS BECAUSE VIRTUALLY, I GOT NO FILLERS.

THE REASON THAT WE DO THESE STUDIES THAT WE'RE HAVING THIS CONVERSATION TODAY IS TO MAKE SURE THAT WE'RE HAVING THIS CONVERSATION WITH COMMUNITY INPUT AND WITH THE DATA THAT OUR STAFF HAVE BROUGHT TO US TODAY.

[01:40:02]

I DO HAVE A COUPLE OF QUESTIONS AND SOME OF THEM RELATE TO LATER, SO I THINK I MIGHT HAVE MORE COMMENTS FOR THE LATER PART AFTER WE GO THROUGH OUR PRIORITIZATION OF CAPITAL IMPROVEMENT BECAUSE I DEFINITELY NOTICED THAT IN THE PRESENTATION FROM THE CONSULTANCY, WE'RE TALKING A BIT ABOUT HAVING OTHER PROJECTS THAT WOULD BE UP FOR DISCUSSION BEING A REASON WHY WE WOULDN'T BE ABLE TO GET SUPPORT FOR SOMETHING LIKE RAISING REVENUE THROUGH A SALES TAX MEASURE.

I KNOW THAT WE'VE ALREADY TALKED ABOUT THAT AS A COUNCIL.

WE ALREADY HAVE SOME THINGS THAT WE'RE INTERESTED IN, INDIVIDUAL PROJECTS THAT WE'RE INTERESTED IN AS WELL.

[NOISE] I WILL SAVE THAT PART FOR LATER, BUT I DID WANT TO ASK ABOUT THE CHART THAT'S UP HERE NOW AND ASK A BIT ABOUT SOME MORE MEAN AROUND WHY WE EXPECT THE DECLINES AND SLOWDOWNS IN OUR REVENUE GENERATION.

IF WE COULD GET JUST A LITTLE BIT MORE INFORMATION ABOUT WHY IT IS THAT WE SEE THAT OUR REVENUES WILL DECLINE WHILE OUR EXPENSES INCREASE.

>> SURE. COUNCIL, THANK YOU VERY MUCH FOR THE QUESTION, AND THAT IS A GOOD QUESTION.

WHEN DEVELOPING A FORECAST, I'LL START BY EXPLAINING ON THE EXPENDITURE SIDE.

IT IS EASIER TO DEVELOP TO ANTICIPATE SOME OF THE UNDERLYING ASSUMPTIONS THAT DRIVE INCREASES ON THE EXPENDITURE SIDE.

WHEN WE LOOK AT THE COST OF PERSONNEL, IT IS EASIER TO FORECAST OUR INCREASES TO SALARIES AND WAGES AND LOOKING AT INCREASES IN BENEFIT COSTS, RETIREMENT COSTS THAT ARE IMPOSED BY CALPERS.

WE HAVE A VERY CLEAR FIVE-YEAR OUTLOOK IN TERMS OF WHAT WE CAN EXPECT OR ANTICIPATE OUR CONTRIBUTIONS OR REQUIRED CONTRIBUTIONS TO LOOK LIKE FOR OTHERS AND TRY THESE MATERIALS AND COST OF UTILITIES.

A LOT OF REGIONAL AGENCIES HAVE A LOT OF GREAT DATA THAT WE'RE ABLE TO ANALYZE AND LEVERAGE REGARDING FIVE-YEAR, 10-YEAR ESTIMATIONS FOR CONSUMER PRICE INDEX AND OTHER ECONOMIC DRIVERS AND HAVING TAX ON THE CITIES AND THE GENERAL FUNDS EXPENDITURES.

ON THE REVENUE SIDE, IT IS A BIT MORE DIFFICULT AND UNCERTAIN.

BUT ON TOP OF THAT AND FOR MATTERS OF FINANCIAL PRUDENCE AND CONSERVATION, [NOISE] WE ALWAYS DO TAKE A BIT MORE OF A CONSERVATIVE APPROACH WHEN WE'RE FORECASTING OUR REVENUES.

A GOOD EXAMPLE OF THAT IS THROUGH THE TIMES OF COVID-19, WE REALLY HAD NO IDEA HOW ADVERSELY IMPACTED SALES TAX, [INAUDIBLE] TAX.

WE'RE GOING TO BE WITH SHELTER IN PLACE MANDATES THAT HAD ARISEN JUST SHORTLY FOLLOWING MARCH OF 2020.

WE KNEW THAT THERE WERE GOING TO BE IMPACTS, BUT WE HAD NO IDEA, NO REAL DATA TO PROVIDE US WITH TRYING TO HONE IN ON THE MAGNITUDE AND THE EXTENT OF THOSE IMPACTS.

MANY AGENCIES LIKE CARLSBAD TOOK VERY CONSERVATIVE ESTIMATIONS IN THAT WANTING TO PREPARE FOR THE WORST AND HOPE FOR THE BEST.

I'LL PAUSE THERE.

IN SUMMARY, I THINK ONE OF THE THINGS THAT I DIDN'T TOUCH ON AS MUCH IN DETAIL WHEN WE'RE LOOKING AT THIS FORECAST IS THAT THE IMMEDIATE FUTURE, WE'RE REALLY JUST LOOKING AT FOUR OF THESE OUT YEARS HERE, FISCAL YEAR '23, '24, AND '25, WE ARE ANTICIPATING SURPLUSES WHERE REVENUE IS COMING IN HIGHER THAN EXPENDITURES.

WE'RE HERE BEFORE YOU TODAY SAYING THAT THE CITY IS IN A VERY STRONG FINANCIAL POSITION.

WE KNOW THAT THE FURTHER WE LOOK OUT, THE MORE UNCERTAIN IT BECOMES, AND WE KNOW THAT IT IS A BIT EASIER TO PREDICT AND THEN SEE WHERE COSTS ARE GOING TO BE TRENDING IN THE OUT YEARS.

PARTICULARLY WHEN WE COMPARE WITH REVENUES IN THE ADDED UNCERTAINTY OVER THAT SIDE, THE CONSERVATIVE APPROACH, ALL OF THAT PLAYS A FACTOR [NOISE] INTO HOW WE'RE ANALYZING AND HAVING THESE DISCUSSIONS AROUND REVENUES AND RELATIONSHIPS WITH EXPENDITURES OVER AN EXTENT PERIOD OF TIME.

>> ONE OF THE THINGS I'D LIKE TO MENTION COUNCIL MEMBER WHEN IT COMES TO REALLY LOOKING AT THESE FORECASTS, THINKING ABOUT EVERYTHING, WE HAVE ALWAYS HAD THE BEST PRACTICE OF SETTING ASIDE MONEY FOR INFRASTRUCTURE.

IT'S TYPICALLY BEEN ABOUT SIX PERCENT OF OUR PROJECTED REVENUES IN A GIVEN BUDGET YEAR.

WE DID HAVE TO PUT THAT ON A LITTLE BIT OF HIATUS DURING THE COVID PERIOD, BUT REALLY, WE'RE LOOKING AT THAT AND THEN THE FUTURE, IS THAT ENOUGH?

[01:45:04]

IS THAT ENOUGH AT THIS POINT TO WARRANT THE REPLACEMENT IN INFRASTRUCTURE INTO THE FUTURE? WE ARE WORKING ON STUDIES AROUND CAPTURING THE VALUE AND REALLY WHAT THAT SHOULD BE EVERY YEAR.

I HAVE TO COMMEND CARLSBAD FOR DOING THAT.

VERY RARELY DO WE SEE CITIES, ESPECIALLY OUR NEIGHBORING CITIES SETTING ASIDE FOR THE FUTURE.

THAT IS ONE THING THAT WE CAN REALLY SAY THAT WE'VE DONE A GREAT JOB, BUT WE CAN'T WITH CONFIDENCE SAY, IS THAT ENOUGH TO REPLACE EVERYTHING THAT'S OUT THERE? THE OTHER THING IS WE KNOW WHAT'S COMING DOWN THE PIPELINE.

WE KNOW THAT THE STATE IS DEMANDING MORE RESIDENTIAL HOUSING, MORE AFFORDABLE HOUSING UNITS.

WITH MORE RESIDENTIAL HOUSING UNITS, THAT DEMAND FOR GOVERNMENTAL SERVICES BECOMES GREATER AS OPPOSED TO COMMERCIAL OR OTHER INDUSTRIAL TYPE OF BUILDINGS.

SOMETIMES THESE INTANGIBLES THAT WE CONSIDER IN THOSE OUT YEARS THAT REALLY HELPED TO LEND CREDIBILITY AS TO WHY WE SAY THE EXPENDITURES WILL OUTPACE OUR REVENUE BASE.

>> GREAT. THANK YOU. I JUST WANTED TO CLARIFY SOMETHING THAT WE JUST HEARD FROM THE FINANCE DIRECTOR, [INAUDIBLE] IF I SAY THIS CORRECTLY AND SAY ALSO VERY, VERY CLOSELY [INAUDIBLE] BUT YOU WERE SAYING THAT IT'S NOT SO MUCH THE REVENUE IS DECLINING AS MUCH AS WE THOUGHT COMMITMENT THROUGH OUR PENSION SYSTEM.

PART-TIME EMPLOYEES, THAT'S ONE OF THE BIG GENERATORS ON THE INCREASE IN EXPENDITURES, IS THAT WHAT I HEARD CORRECTLY? IF YOU COULD EXPLAIN JUST VERY BRIEFLY AND AS CONCISELY AS POSSIBLE ABOUT CALPERS AND WHAT THAT IS.

>> SURE, ABSOLUTELY. THANK YOU FOR THE QUESTION AND THE CLARIFICATION THERE.

YES, ABSOLUTELY, IN SHORT, WHILE I TOGGLE MY WAY TO A COUPLE DISCUSSION POINTS SLIDES THAT WE HAVE NEAR THE END OF THE PRESENTATION.

SORRY, I WANTED TO MAKE SURE I'M NOT MISSING ANYTHING WHILE I TRY TO MULTI TASK HERE.

I'LL TRY TO BE AS BRIEF AS POSSIBLE.

BUT YES, ADDRESSING PENSION COSTS AND CITY'S UNFUNDED LIABILITY IS SOMETHING THAT'S NOT UNIQUE TO THE CITY OF CARLSBAD.

EVERY PARTICIPATING AGENCY EXPERIENCES THE SAME CHALLENGES, AND PART OF THAT CHALLENGE IS THE CONTROL THAT CALPERS INHERENTLY HAS ON ALL OF ITS PARTICIPATING MEMBERS.

WHEN I REFER OR WHEN I USE THE TERM CONTROL I'M TALKING ABOUT INVESTMENT PERFORMANCE.

CALPERS HAS JUST UNDER $500 BILLION IN ASSETS THAT IT RECEIVES FROM ALL PARTICIPATING AGENCIES IN THE STATE OF CALIFORNIA.

THEY INVEST IT CONSTANTLY, AND DEPENDING ON CALPERS INVESTMENT PERFORMANCE, IT HAS A DIRECT IMPACT ON PARTICIPATING MEMBERS, IN OUR CASE, THE CITY OF CARLSBAD, THEIR LEVEL OF REQUIRED CONTRIBUTIONS WE MAKE ON AN ANNUAL BASIS.

THERE IS A LOT OF UNCERTAINTY WHEN WE LOOK OUT OVER THE NEXT 5, 10 YEARS.

I WILL SAY CALPERS DOES A FANTASTIC JOB IN THE SENSE OF PROVIDING ALL THE DATA THAT THEY HAVE TO ASSIST THEIR AGENCIES TO BETTER PLAN AND PREPARE AND BUDGET FOR THESE EXPECTED FLUCTUATIONS AND CONTRIBUTION RATES OVER THE NEAR AND LONG TERM.

BUT AGAIN, THAT IDEA OF UNCERTAINTY AND NOT BEING BROUGHT ON BY LACK OF CONTROL THE PARTICIPANTS HAVE IN PENSION SYSTEM IS REALLY WHAT DRIVES, AS YOU MENTIONED, COUNCIL MEMBER, A LOT OF THE INCREASES THAT WE'RE SEEING ON THE EXPENDITURE SIDE.

>> THANK YOU. I UNDERSTAND UNCERTAINTY AROUND THE INVESTMENTS IN CALPERS, BUT WE DO HAVE PROJECTION, LIKE HE SAID, 5-10 YEARS AND WE SEE THAT THAT'S INCREASING.

COULD YOU REMIND US AGAIN WHAT'S IN THIS STAFF REPORT OF OUR COUNCIL POLICY AROUND KEEPING THAT FUNDED?

>> SURE. COUNCIL POLICY, NUMBER 86, I BELIEVE IT WAS SET FORTH A DESIRED FUNDED STATUS OF 80 PERCENT.

RIGHT NOW I BELIEVE WE'RE STILL ANTICIPATING TO RECEIVE THE UPDATED ACTUARIAL REPORTS FROM CALPERS IN A COUPLE OF MONTHS, BUT I BELIEVE WE WILL EXPECT TO BE ABOVE THAT 80 PERCENT MARK.

WHAT THAT MEANS WHEN WE TALK ABOUT FUNDED STATUS IS THE TOTAL AMOUNT OF DOLLARS THAT THE CITIES CONTRIBUTE TO CALPERS COMPARED TO THE TOTAL LIABILITY [NOISE] THAT CALPERS CALCULATES FOR ALL PARTICIPATING MEMBERS.

THE HIGHER THE FUNDED STATUS, THE BETTER OFF A CITY IS.

THAT REALLY MEANS THE FEWER FUTURE LIABILITY AS WELL AS INTEREST EARNINGS THAT THE CITY WILL OWE.

>> THANK YOU. JUST RELATED TO THAT, A FORECAST FOR THAT.

[01:50:02]

THE SLIDE THAT YOU SHOWED PREVIOUSLY THAT HAD THE BAR CHART OR THE LINE THAT HAD A FIVE-YEAR EXPECTING FORECAST.

WE DO ANNUAL CHECK-INS AS OUR BUDGET AND THROUGHOUT THE YEAR OBVIOUSLY, WE'RE LOOKING AT THOSE THINGS AND WE AS A COUNCIL, WORK WITH YOU, WORKS WITH STAFF ON THE CALPERS AND SOME OF THE OTHER CHANGES AND FLUCTUATIONS THAT WE SEE AND LOOK AT THE FUTURE.

THAT BAR CHART THAT YOU HAD HAD ABOUT TO 2026.

BUT COULD YOU TALK A LITTLE BIT ABOUT THE LONGER-RANGE PREDICTIONS THAT ARE PRETTY CERTAIN BASED ON, I KNOW WE CAN'T BE CERTAIN, BUT A STRONG FOUNDATION IN DATA THAT SHOW THE INCREASES IN OUR PERCENTAGES.

>> SURE. THAT IS AN IMPORTANT QUESTION.

LIKE YOU ACCURATELY POINT TO, THE LEVEL OF UNCERTAINTY WE'RE TRYING TO PREDICT AND PROJECT WHERE ALL THOSE REQUIRING CALPERS CONTRIBUTION RATES ARE GOING TO GO.

THAT IS ONE OF THE CHALLENGES.

WE ARE ABLE TO SEE WHERE THEY'RE EXPECTED TO GO IN THE NEXT FIVE YEARS.

HOWEVER, THAT IS BEYOND THAT FIVE YEARS BECAUSE ON AN ANNUAL BASIS, CALPERS WILL PROVIDE UPDATES BASED ON NEW CENSUS DATA THAT THE CITY PROVIDES.

IF WE REDUCE STAFFING BY ONE PERCENT OR WE INCREASE IT BY ONE PERCENT, THAT WILL HAVE AN IMPACT ON THE RATES.

IF CALPERS HAS A FOUL YEAR IN INVESTMENT PERFORMANCE OR A GREAT YEAR, THAT WILL IMPACT THE RATES.

IT IS A BIT OF A SNAPSHOT WHEN WE'RE LOOKING OUT OVER THE NEXT FIVE YEARS WHERE WE THINK THOSE CONTRIBUTIONS ARE GOING TO GO.

I UNDERSTAND THAT THAT PROBABLY DOESN'T ADDRESS THE QUESTION AS WELL AS YOU MIGHT HAVE HOPED.

>> IT'S OKAY. I THINK I WAS REALLY JUST LOOKING IN THE LONG-TERM, LIKE MORE THAN FIVE YEARS, MORE THAN SIX YEARS, BUT BEYOND AS FAR AS WE'VE LOOKED, 10, 12, 20 YEARS, WE SEE THAT THIS IS NOT GOING TO GO AWAY BECAUSE CALPERS AND PENSIONS ARE SOMETHING THAT WE OFFER AS A GOVERNMENT ENTITY AND IT'S SOMETHING THAT'S GOING TO CONTINUE TO BE PART OF OUR LIABILITY OR DEBT THAT WE'RE ALWAYS GOING TO HAVE WITH US; IS THAT RIGHT?

>> YES. CURRENTLY, CALPERS HAS RECENTLY SAID THE DISCOUNT RATE OR ANOTHER WAY TO LOOK AT IT AND ASSUME A TARGET RATE OF RETURN OF APPROXIMATELY 6.8 PERCENT.

THEY DO HAVE A LOT OF CONSULTANTS AND ANALYSTS THAT WILL COME IN AND TRY TO SUBSTANTIATE THOSE ESTIMATES FURTHER.

I KNOW A RECENT REPORT HAD COMMUNICATED ESTIMATIONS OF INVESTMENT PERFORMANCE OR INVESTMENT RETURN AT A LOWER LEVEL OF APPROXIMATELY BETWEEN 6.2 AND 6.3 OVER THE NEXT 20-YEAR PERIOD.

WHAT THAT REALLY MEANS IS THAT THERE IS POTENTIAL FOR A FUNDING GAP WHERE IF A TARGET RATE OF RETURN CURRENTLY IS AT 6.8 PERCENT, BUT THEY MIGHT BE ANTICIPATING 6.2.

THERE'S AN INCREASED RISK THAT CALPERS COULD BE REDUCING THE DISCOUNT RATE OR THE TARGET RATE OF RETURN EVEN FURTHER, AND THAT WILL HAVE A DIRECT IMPACT ON ALL PARTICIPATING MEMBERS AND HAVE POTENTIAL FOR INCREASING RATES.

TO YOUR POINT, THIS IS SOMETHING THAT EVEN WHEN WE WERE DOING ALL THESE GREAT THINGS, OVER THE LAST FIVE YEARS, THE CITY HAS CONTRIBUTED OVER $56 MILLION TO CALPERS AND ADP, ADDITIONAL DISCRETIONARY PAYMENTS, AND THAT WAS TO, NUMBER 1, ACHIEVE COMPLIANCE WITH THE CITY'S POLICY THAT 80 PERCENT FUNDING STATUS, AND TO PUT IT BETTER, MANAGE OVER THE UNFUNDED LIABILITY AND TRY TO REDUCE THOSE FUTURE COSTS AS MUCH AS POSSIBLE.

BUT AT THE SAME TIME IT'S ALWAYS GOING TO BE A CHALLENGE, AND UNFORTUNATELY JUST GIVEN THE STRUCTURE OF THE SYSTEM ITSELF LOCAL AGENCIES IN THE CITY OF CARLSBAD, A LOT OF IT IS OUT OF THEIR CONTROL.

>> COOL. COUNCIL, IF I COULD ALSO CAN I PUT A FINER POINT ON THE SAME.

ONE OF OUR PENSION SLIDES THAT TALKS ABOUT WHAT OUR RATE IS IF AN EMPLOYEE IS ON CLASSIC VERSUS [INAUDIBLE].

BECAUSE I THINK THAT THAT'S ALSO HELPFUL, AS I'VE MENTIONED, AS WE'RE BUILDING UP ON THIS THAT WE'RE TALKING ABOUT.

THERE WERE SEVERAL STRATEGIES THAT THE CITY OF CARLSBAD EMPLOYED REALLY TO CONTAIN COSTS IN THE LAST ECONOMIC DOWNTURN, ONE OF WHICH WAS IMPLEMENTING THAT ADDITIONAL PENSION TIER SYSTEM.

NOW, IF YOU LOOK AND YOU LOOK AT THE BENEFITS, SO AGAIN, WE'VE GOT TIER 2 WE'VE GOT TIER 3, BUT REALLY IT'S CONTINUING TO CHANGE.

AS THOSE RITUAL BENEFITS ARE RETIRING OUT OF THE SYSTEM, AGAIN, OUR MIX OF OUR EMPLOYEE GROUP IS AT A MORE COST-EFFECTIVE LEVEL AND THOSE ARE KNOWN AS PAPER BENEFITS.

[01:55:01]

NOW, WHAT I'M REALLY, I THINK, EXCITED ABOUT IS WE CONTINUE TO TRY AND VERY CLOSELY MANAGE THIS AND FOLLOW THIS AS BEST AS WE CAN.

HOWEVER, AS ZACH HAD MENTIONED, ONE OF THE THINGS UNFORTUNATELY IS OUTSIDE OF OUR CONTROL IS THAT DISCOUNT RATE OR THE INTEREST RATE, IF YOU WILL.

WHAT ORIGINALLY STARTED AT AROUND 7.75 PERCENT, SLOWLY THE PENSION SYSTEMS AROUND THE COUNTRY WE HAVE BEEN CONTINUING TO REDUCE THOSE DISCOUNT RATES AND WHAT THAT MEANS AS THE EMPLOYER IS OUTSIDE OF OUR CONTROL AND THOSE COSTS ARE BASICALLY PASSED ONTO US.

WE DON'T HAVE AN OPPORTUNITY TO SAY NO, WE'RE NOT GOING TO DO IT.

FOLKS THAT DO GET THEMSELVES IN ALL KINDS OF TROUBLE AND THAT'S A WHOLE ANOTHER TALE.

BUT AGAIN, IN THIS SITUATION, THIS IS SOMETHING WHERE, AGAIN, OUTSIDE OF OUR CONTROL, BUT WE CONTINUE TO TRY AND PLAY CATCH UP OR PAY DOWN WHATEVER THAT DEBT IS, BECAUSE THE FASTER WE CAN PAY THAT DEBT DOWN, WHICH IS WHY THE COUNCIL WAS SO THOUGHTFUL AND EVEN AT 80 PERCENT AS A MINIMUM.

AGAIN, THAT IMPROVES OUR PERFORMANCE AND ULTIMATELY GENERATES COST-SAVINGS FOR THE ORGANIZATION.

>> IF I COULD MAKE A COMMENT ON PENSIONS.

IF YOU GO BACK AFTER THE LAST 30 YEARS AND LOOK AT HOW PENSION COSTS RELATIONSHIP TO INTEREST COSTS, AS THE INTEREST GOES UP, YOUR COST OF PENSIONS GOES DOWN.

YOU GO BACK TO THE 18,000.

AT THIS MOMENT IN TIME USING WHAT HAS HAPPENED IN THE PAST, PROBABLY BY 2030 IT WILL BE 110 PERCENT AS RATE WOULD GO BECAUSE AS INFLATION GOES UP, AND YOU CAN TAKE THE LAST COUPLE OF YEARS AND LET THE RETURNS BE ON PERS.

FOR THE PERS, THE NUMBERS ARE GOING IN THE RIGHT DIRECTION FOR US.

I MEAN, THE RETURN ON INVESTMENT IS MUCH BETTER, AND I THINK YOU'LL SEE THAT AS YOU GO INTO THE FUTURE.

>> I FEEL, OVERALL, I THINK IT'S JUST MISMANAGING.

[NOISE] IT'S A BIG PIECE, [LAUGHTER]. IT REALLY IS.

LIKE I SAID, YOU CAN SEE HERE WHERE WE ARE FUNDED COMPARED TO THE OTHER CITIES IN THE REGION.

BUT I HAVE TO SAY THAT WE HAVE HAD GOOD PENSION REFORM.

THE PPF [NOISE] FORMULA THAT WAS PUT OUT.

[NOISE] WE'LL BE ABLE TO HAVE GOOD COST CONTAINMENT GOING IN THE FUTURE.

SO IT'S ALL PART OF THE MANAGEMENT OF THIS, AND THAT'S WHY IT'S IMPORTANT TO HAVE THESE CONVERSATIONS AND AN UNDERSTANDING AFTER [INAUDIBLE] YEARS PASS ON.

>> ANYTHING, IF WE COULD ALSO DRAW FROM ONE'S ATTENTION TO THIS ISSUE.

I THINK THEY'RE REALLY JUST A GREAT AND EXTRA SLIDE BECAUSE THIS IS SOMETHING THAT AGAIN SHOWS THAT CARLSBAD BECAUSE OF COUNCIL'S THOUGHTFULNESS AND CREATING POLICIES FOR THIS, WE HAVE CONTINUED PERFORMANCE ON SOME OF THE BEST IN THE REGION.

>> THANK YOU. I'LL SPEED UP MY QUESTION I KNOW WE'RE RUNNING SHORT OF TIME, BUT I WANT TO SAY THANK YOU AND THANK YOU, ESPECIALLY FOR THIS SLIDE FOR SHOWING YOU'RE HOVERING WE'RE DEALING IN TERMS OF LOOKING AT OUR PENSIONS OF THAT FROM ONGOING COSTS.

I DID READ AND I SAW SOMEWHERE IN THE STAFF REPORT THEN, THE STAT THAT THREE CITIES IN CALIFORNIA FILED BANKRUPTCY AND SO MUCH OF IT WAS FAIRLY BECAUSE THEY WERE UNPREPARED FOR THEIR PINCHING COSTS IN THE FUTURE.

SO I UNDERSTAND THAT THAT'S A REALLY BIG THING AND IT'S NOT ALWAYS OBVIOUS TO THE PUBLIC WHEN WE SEE OR BUDGET HOW IMPORTANT THIS IS AND LOOKING OUT INTO THE FUTURE TO KNOW THAT THIS IS AN ONGOING GROWING COST.

THANK YOU FOR THAT, AND THE OTHER WAS THE ONGOING INFRASTRUCTURE IMPROVEMENTS BECAUSE IT'S OUR INFRASTRUCTURE AGENTS THAT WE'VE GOT THIS PERCENTAGE THAT WE SET ASIDE TO REPLACE AND REPAIR AND MAINTAIN OUR INFRASTRUCTURE.

BUT THAT'S SOMETHING THAT ISN'T SO VISIBLE ALWAYS TO THE PUBLIC.

YOU DON'T HAVE RIBBON CUTTINGS AND YOU DIDN'T SHOW THAT WE JUST REPLACED THE PIPE.

BUT IT'S NECESSARY FOR US TO RECEIVE EXCELLENT SERVICES IN CARLSBAD.

THEN I JUST WANTED TO COMMENT ON THIS FOR JUST A RESPONSE ABOUT THE AMENITIES THAT WE EXPECT TO GET IN CARLSBAD.

I'M GOING TO JUST SAY BRIEFLY THAT, THAT IS SOMETHING THAT I'M REALLY EXCITED ABOUT THE GROWTH MANAGEMENT DATA ADVISORY COMMITTEE, LOOKING AT THE RESIDENTS TO AMENITIES AS WE GROW, AS OUR CITY CONTINUES TO GROW AND THE STATE IS MAINTAINING THAT WE HAVE MORE HOUSING UNITS, WE WILL GROW.

BUT THAT WE HAVE TO ENSURE THAT WE HAVE THE SAME TYPE OF RESPONSE TIMES, AND THAT'S WHY WE, AS A COUNCIL, PRIORITIZE THE STANDARDS OF COVER FOR THE FIRE DEPARTMENT AND FOR PUBLIC SAFETY IN GENERAL, JUST BE KEEN TO LOOK AT THAT AND THE INTERCEPT TOO.

OUR PARKS THAT OPEN SPACE TO OTHER ENTITIES THAT WE HAVE.

LASTLY, I JUST HAVE SWITCHING GEARS BECAUSE I KNOW WE HAD A BIG PRESENTATION THIS MORNING.

I JUST WANTED TO ASK A QUICK QUESTION,

[02:00:04]

IF SOMEBODY CLEARLY, EXPLAIN, THERE WAS A COMMENT MADE ABOUT HOW A SALES TAX WILL BE MORE OF A FAIR TEST BECAUSE IT'S DISTRIBUTED EVENLY.

BUT I'VE READ OTHER THINGS ABOUT SALES TAX BEING A CLASSIC EXAMPLE OF OVER-AGGRESSIVE TAX, WHICH DEFINED BY INVESTOPEDIA ANNIVERSARY TEXTS AS A TAX APPLIED, TAKES A LARGER PERCENT OF INCOME FROM LOW INCOME EARNERS THAN FROM HIGHER INCOME EARNERS.

I JUST WANTED TO GET SOMEBODY TO EXPLAIN A WHAT REGRESSIVE TAX IS.

>> SURE. I THINK WE'LL HAVE JARED COME UP BY.

THAT WAS SOMETHING MENTIONED AS PART OF HIS PRESENTATION.

>> YES, QUICKLY. THANKS, COUNCIL FOR THAT.

I HAD THAT SAME THOUGHT.

I WAS MAKING OBSERVATION FIRST FROM THE PROSPECT OF PROPERTY OWNERS BECAUSE A LOT OF WHAT WAS PUT IN FRONT OF THE VOTERS, IN CALIFORNIA ON PROPERTY TAXES, JUST EXCESS AMOUNT OF PROPERTY TAXES OR PROPERTY OWNERS DO TEND TO PREFER THEM.

I WOULD ALSO SAY THAT IN CALIFORNIA SPECIFICALLY, THERE ARE SOME ELEMENTS OF SALES TAX THAT MAKE IT CONSIDERABLY LESS GROUP REGRESSIVE.

SO GROCERIES ARE EXEMPT, MEDICINE IS EXEMPT, [INAUDIBLE] PRODUCTS ARE EXEMPT.

FOR LOWER-INCOME FOLKS WHO LIVE ON NECESSITIES, THOSE ARE EXEMPT FROM SALES TAX, AND SO IT DOES TEND TO BE HIGHER INCOME THAT WAS INTENDED TO GENERATE MORE.

I DON'T HAVE TO BE EXACT, PRECISE, DOLLARS FEE, BUT I GUESS THERE'S BEEN AN ATTEMPT BY POLICYMAKERS TO ADDRESS THAT ISSUE.

>> THANK YOU VERY MUCH.

I KNOW WE'RE SHORT ON TIME AND I APPRECIATE ALL OF THE RESPONSES TO YOUR QUESTIONS AND I LOOK FORWARD TO THE REST OF THE CONVERSATIONS.

[NOISE]

>> DR. ROBIN.

>> THANK YOU FOR THE PRESENTATION AND FOR BRINGING THIS FORTH.

QUICK QUESTION TO START OFF.

THIS TYPE OF REPORT THAT YOU ALL ARE PROVIDING TO US IT'S BROUGHT TO US I'M ASSUMING EVERY SO OFTEN TO LET US KNOW HOW WE CATER TESTS BASED ON FORECASTS, WE LOOK INTO THE FUTURE [NOISE] BECAUSE I'M ASSUMING WHETHER IT'S A PUBLIC AGENCY OR OTHER ENTITIES, WE'RE ALWAYS WANTING TO MAKE SURE THAT WE ARE EVALUATING WHERE THE LINES WILL CROSS SO THAT WE CAN ADJUST BASED ON THAT. WOULD THAT BE ACCURATE?

>> THAT'S ABSOLUTELY ACCURATE.

>> GREAT. THEN JUST TO REITERATE, [BACKGROUND] IT SOUNDS LIKE [NOISE] SO I'D LIKE TO ASK THAT QUESTION.

ARE WE PHYSICALLY HEALTHY?

>> GIVEN WHAT WE KNOW TODAY, AND WHERE WE ARE SEEING IN THE NEXT YEAR OR TWO, YES.

>> GREAT, AND THEN CAN YOU PLEASE LET ME KNOW WHAT THE PERCENTAGE OF OUR RESERVES ARE CURRENTLY?

>> CURRENTLY IN TERMS OF A PERCENT, I BELIEVE WE ABOUT 67 PERCENT. GO BACK TO OUR CHART.

>> BASED ON THE FISCAL YEAR 21-22 ADOPTED BUDGET, LOOKS LIKE THAT RESERVE PERCENTAGE WAS COMING IN JUST UNDER 60 PERCENT. I'M SORRY, GO AHEAD.

>> YEAH, I WANT TO MENTION MAYBE A COUPLE OF SHIFTS TO THE EMPLOYER STRUCTURE FUNDAMENTALLY WITH THE EXCESS REVENUE FROM 2021.

WE GETTING THERE, SORRY.

[BACKGROUND] YES, SO IT WOULD BE RIGHT WHERE THE BLUE IN 21-22.

[OVERLAPPING]

>> COUNCIL VAN MENTIONED THAT DUE TO OUR STANDARDS AND COVER AND WHAT WE WE'RE TALKING ABOUT WITH REGARDS TO HOUSING AND POTENTIALLY INCREASING POPULATION.

IT SOUNDS [NOISE] AND I KNOW THAT THERE'S A QUESTION BROUGHT UP WITH REGARDS TO OUR PUBLIC SAFETY BUDGET AND WHETHER OR NOT I START TO LOOK FORWARD, WHETHER OR NOT THAT WAS SOMETHING THAT THEY WANTED TO EITHER INVEST IN OR INCREASE OUR INVESTMENT FUND.

[BACKGROUND] BASED ON PROJECTIONS, I JUST WANTED TO ASK HOW MUCH OF OUR BUDGET FIRST IS SPENT ON PUBLIC SAFETY AND PUBLIC WORKS CURRENTLY SINCE I KNOW THOSE WERE THE ONES THAT BOTH ARE MOST INTERESTED IN AND ALSO THE ONES THAT WERE BROUGHT UP.

IT DIDN'T HAVE THAT FIGURE.

[NOISE]

>> I DON'T HAVE THE EXACT FIGURES ON ME RIGHT NOW, BUT I BELIEVE THE PERCENTAGE THAT WAS BROUGHT UP BY [INAUDIBLE] WAS CORRECT.

REALLY PUBLIC SAFETY USUALLY BRING 40-45 PERCENT OF THE OF THE TOTAL FUNDING. [NOISE].

>> GREAT, PERFECT.

[02:05:02]

THEN I KNOW THAT THERE WAS A CONVERSATION AROUND THE LOCAL, WE WERE ONLY ABLE TO HIT UP TO 2 PERCENT MARK WITH REGARDS TO HOW MUCH WE BRING IN FROM SALES TAXES.

CURIOUS HOW MUCH WE'RE ALREADY BRINGING IN.

I DON'T KNOW IF THAT FIGURE IS AVAILABLE TO US, BUT WOULD BE INTERESTED TO HEAR HOW MUCH, WHAT PERCENTAGE IS ALREADY BEEN BROUGHT IN OTHER THAN 2 PERCENT AND THAT FIGURE IT LOOKS LIKE IT POSSIBLE.

>> WE DON'T HAVE ANY LOCAL MEASURE THAT COMES DIRECTLY OUT OF THE 7.75 OTHER THAN THE [NOISE] 12 PERCENT OF OUR SALES THAT ARE ATTRIBUTED TO THE CITY OF CARLSBAD.

WHAT WE WERE REFERRING TO THERE IS A 7.75 PERCENT SALES TAX RATE, WHICH IS CURRENTLY WHAT WE HAVE.

WE HAVE OUR SHARE.

IF WE WERE TO PASS AT ONE PERCENT HERE LOCALLY, THAT ADDITIONAL ONE CENT WOULD STAY HERE.

HOWEVER, IF SHOULD SOMEONE, AN AGENCY LIKE CALL YOU SANTEE PASS [LAUGHTER] OR ACTUALLY PUT ON THE BALLOT, THEY HAVE TO SALES TAX, THE WHOLE REGION WOULD PAY THAT, AND THAT HAS SAID THAT CARLSBAD TAXPAYER WOULD PAY HERE, CARLSBAD WOULD GO TO SANTEE.

WE WILL NOT BE ABLE TO RETAIN IT GLOBALLY.

THAT IS WHAT WE WERE REFERRING TO THAT USUALLY THERE'S A CAP.

USUALLY WE DON'T LIKE TO SEE MORE THAN 9.5-10 PERCENT CAP, WHICH CITIES TAXPAYERS PAY.

THAT COULDN'T BE DISTRIBUTED TO THE MANY JURISDICTIONS, THAT [NOISE] STUFF.

>> THANKS AND I UNDERSTOOD THAT ITS EXCELLENT TO MAKE SURE YOU CLARIFY THAT.

THAT'S REALLY HELPFUL. JUST BRIEFLY, THE OTHER PIECE WON'T BE AROUND.

I KNOW FOLKS WERE ASKING YOU ABOUT OTHER OPTIONS AND WE OBVIOUSLY HAVE THREE OPTIONS IN FRONT OF US TODAY AND I'LL LOOK FORWARD TO THE CONVERSATION WITH MY COLLEAGUES.

BUT [NOISE] JUST CURIOUS WHAT OTHER ALTERNATIVE OPTIONS BECAUSE I KNOW YES, WE CAN JUST ACCEPT THE REPORT AND RECEIVE IT AND MOVE ON.

BUT JUST CURIOUS, WHAT OTHER ALTERNATIVE OPTIONS YOU CAN HAVE, THE SLIDES OF SALES TAXING, [BACKGROUND] OR CONSIDERING ANY OF THE OTHER THINGS THAT HAVE BEEN MENTIONED TODAY.

>> WELL, OTHER OPTIONS ARE [BACKGROUND] AT AREAS OF SERVICE AND WHETHER THOSE ARE STILL A PRIORITY COUNCIL DEPARTMENTS OUT HERE, WE HAVE A NUMBER OF SERVICES, WE HAVE A NUMBER OF PROGRAMS EXPLAINING TRANSPARENCY TO THOSE AND THE COSTS AROUND THOSE, AND COUNCIL DECIDING, MAKING DECISIONS AROUND WHETHER OR NOT WE WANT TO CONTINUE TO FUND THOSE OR SUBSIDIZE THOSE.

WHEN I SAY SUBSIDY, GENERAL FUND, WE WHEN WE RUN APART AND WE MAINTAIN APART WHEN WE [NOISE] PUT ON OUR PROGRAMS. THERE ARE CHOICES THAT THE CITY COUNCIL MAKES AN ORDER TO SERVE THE COMMUNITIES.

THERE IS A LOT OF OPTIONS AROUND LOOKING AT WHERE WE PROVIDE SERVICE.

[NOISE] I WOULD SAY THAT'S PROBABLY THE OTHER BIGGEST AREA WHERE WE COULD SPEND TIME LOOKING AT.

>> ON IT. WITH THAT NEW POINT, I KNOW THAT THERE'S AN OPTION FOR ADDITIONAL INFORMATION.

WOULD THAT FALL UNDER ADDITIONAL INFORMATION OR WOULD THAT JUST BE GIVING YOU THE AUTHORITIES TO MOVE FORWARD [NOISE] GETTING MORE INFORMATION ON THIS PARTICULAR VALID MEASURE?

>> I THINK WE BELIEVE THAT SECOND OPTION WOULD BE AROUND GATHERING MORE INFORMATION RELATIVE TO EITHER OTHER MEASURES OF REVENUE ENHANCEMENT OR AROUND THE INFORMATION AROUND ADDITIONAL SALES TAXES. [NOISE]

>> OKAY.

>> BUT COUNSELOR, TO THAT POINT, IF COUNCIL WANTS TO DIRECT US TO DEVELOP A CATALYST OR SOME OPTIONS FOR COUNCIL'S CONSIDERATION FOR IMPACT AND SERVICE LEVELS, MAYBE WE [INAUDIBLE] REDUCING POOL HOURS.

THERE ARE ALL TYPES OF THINGS THAT FALL INTO THAT SERVICE LEVEL DISCUSSION, SO IF COUNCIL, MAYBE IT'S THAT RESPONSIVENESS THAT WE HAVE FOR OUR ORGANIZATION [BACKGROUND] IN RESPONDING TO COMPLAINTS FOR SERVICE DELIVERY.

AGAIN, ANYTHING THAT HAS A COST [INAUDIBLE] DIRECTORS TO LOOK AT [NOISE] AND COME BACK WITH SPECIFIC RECOMMENDATIONS.

THAT'S WHY WE'RE HERE, WE'RE PUMPING THE, HEY WE WANT TO LET EVERYONE KNOW THAT WE SEE THAT THERE'S THIS,

[02:10:04]

INTER-HORIZON, THE LINES CROSS, AND SO [NOISE] WE WANTED A HIGH-PERFORMING ORGANIZATIONS TO TRY AND PROVIDE AS MUCH NOTICE AS POSSIBLE.

BECAUSE AGAIN, WE DON'T KNOW WHEN THE ECONOMIC UNCERTAINTY IS GOING TO OCCUR WHEN YOU START PROJECTING OUT MULTI [INAUDIBLE] IN THE FUTURES.

THAT'S WHY WE'RE TRYING TO HAVE THAT DISCUSSION NOW, CHECKING WITH COUNCIL AND THE COUNCIL CAN TELL US [NOISE] DO OVER AN ADDITIONAL REVENUES, ADD IN CUT SERVICES, COME BACK WITH A CUT LIST.

AGAIN, WE'RE HERE TO COME UP WITH WHATEVER INFORMATION WE NEED TO MAKING INFORMED DECISIONS.

>> CAN THAT BE JUST IN PART TWO? IN OUR NEXT PRESENTATION, YOU'RE GOING TO SEE A LOT OF PROJECTS THAT ARE ON THE HORIZON AND WHAT WE WILL DO TO MAINTAIN AN ADDITIONAL PARK.

WHAT WILL IT TAKE TO RESOURCE AND MAINTAIN AN ADDITIONAL AND VITAL INFORMATION.

THESE ARE ALL THINGS THAT MAYBE WILL PLAY IN PART THOSE DECISIONS, THE RISING COSTS OF SERVICE LEVELS.

>> GREAT. THANK YOU.

[INAUDIBLE] [NOISE]

>> IS THAT ADDED TO THE DOCTRINE?

>> YEAH.

>> OKAY.

>> MR. [INAUDIBLE].

>> I KNOW ALL OF THE SPEAKERS WHO SPOKE AND I KNOW THAT POLITICALLY, SOME OF THEM LEAN PRETTY FAR TO THE LEFT AND SOME OF THEM LEAN PRETTY FAR TO THE RIGHT AND IT WAS INTERESTING THAT NONE OF THEM SAID MORE TAXES.

I THOUGHT THAT WAS AN INTERESTING OBSERVATION.

IF THE COUNCIL WERE TO DECIDE, TO [INAUDIBLE] HOW MUCH DOES IT COST, NOT JUST THE [INAUDIBLE] ON THE BELLY BUT ALSO FOR ALL THE COSTS OF THE RECOMMENDED COMMUNICATION?

>> JASON DO YOU HAVE THAT INFORMATION?

>> YES, THANK YOU [INAUDIBLE].

THE ESTIMATED COST FOR GETTING THROUGH THE NEXT PHASE OF THAT SCOPE OF WORK, [NOISE] AS I SAID SOMEWHERE IN THE RANGE UNDER A $100,000.

PROBABLY AROUND $30,000 FOR CONSULTING SERVICES AND THEN MAINLY IN OUR COMMUNICATION EFFORTS, ANOTHER $30,000 TOWARDS FOR THAT OR SO, EXCLUSIVE OF THE COST OF PLACING MEASURE ON [INAUDIBLE].

>> IN ADDITION TO THAT, HOW MUCH ADDITIONAL [INAUDIBLE]?

>> I BELIEVE WE HAVE ESTIMATED FROM THERE [INAUDIBLE] VOTERS IN THE 60 AND $90,000 RANGE, BUT WE DON'T HAVE AN UPDATED ESTIMATE [NOISE] FOR A SPECIFIC TO THE NOVEMBER 22 BALLOT.

>> THANK YOU.

MY QUESTION IS TO THE PEOPLE WHO PUT TOGETHER THE QUESTIONS FOR THE SURVEY.

[BACKGROUND] IF I WERE TAKING THE SURVEY AND I DIDN'T KNOW WHAT I KNOW, WHEN YOU ASK A QUESTION WHEN YOU SAY FUNDING WILL ALLOW THE CITY TO KEEP UP WITH REPAIRS AND MAINTENANCE, STREETS AND SIDEWALKS, ETC.

WE ALREADY DO. THAT IN PERSON WE CAN WITHOUT THIS INCREASE.

THE OTHER COMMENT WAS A SUBSTANTIAL AMOUNT OF THE TAX COLLECTED THROUGH PEOPLE WHO DON'T EVEN LIVE HERE.

THESE QUESTIONS SEEM MISLEADING AND LEADING PEOPLE TO ALMOST HAVE THIS EMERGENCY AND I WILL HAVE TO PAY FOR IT, SOMEBODY ELSE WILL PAY FOR IT.

IS THIS AN ACCEPTED WAY TO PRESENT THIS? YOU'RE THE EXPERT [INAUDIBLE] BUT I JUST KNOW THAT FROM MY PERSPECTIVE THERE'S SOMEBODY PROBABLY GOING TO BE GOING, OH MY GOSH, IF WE DON'T INCREASE THE TAXES, WE'RE NOT GOING TO BE ABLE TO MAINTAIN OUR CITY THE WAY WE ARE.

TO FIX THE HOLE, WE HAVE THOSE TWO SECTIONS THAT WE CALL POSITIVE ARGUMENTS AND NEGATIVE ARGUMENTS.

AS I MENTIONED DURING THE PRESENTATION THE POINT IS, IF COUNCIL WERE TO CHOOSE TO PLACE A MANAGER WITH NOVEMBER BALLOT, THERE'S GOING TO BE AN ELECTION CYCLE.

THERE'S GOING TO BE ADVOCATES OF THIS MEASURE THAT WILL GO OUT AND PUT OUT PERSUASIVE ARGUMENTS DESIGNED TO GET THEIR NEIGHBORS AND FRIENDS AND OTHER VOTERS.

SO YES, JUST SAYS YOU MIGHT HAVE OPPONENTS WHO WILL MAKE ARGUMENTS AS TO WHY THIS CENTER IS NOT HEEDED.

IN BOTH OF THOSE CASES, THEY'RE GOING TO BE MAKING THEIR POINTS.

THE POINT OF AS A WHOLE WAS TO TEST BOTH SIDES.

TO EXPOSE THE RESPONDENTS TO THE TYPES OF ARGUMENTS THAT ARE GOING TO ENCOUNTER DURING ELECTION CYCLES.

THOSE ARE THE TYPES OF ARGUMENTS YOU WOULD ENCOUNTER.

SAME THING ON THE NEGATIVE ARGUMENTS.

[NOISE] SOME OF THE ARGUMENTS THAT WE TEST AREN'T NECESSARILY TRUE.

BUT IT'S WHAT YOU WOULD EXPECT TO HEAR FROM AN OPPONENT WHEN THEY COME OUT AND TRY AND ARGUE AGAINST IT.

THE POINT OF THE SURVEY IS TO MAKE SURE WE'RE GOING TO BE ACCURATE ABOUT WHERE THE COMMUNITY STANDS.

WE WANT TO SIMULATE THAT DISCUSSION AND YEAH, IT'S POINTED ON BOTH SIDES.

>> THANK YOU FOR EXPLAINING. I APPRECIATE IT.

>> THANK YOU.

>> ONE QUICK QUESTION ABOUT FINANCES.

WE'RE WATCHING HOME PRICES SKYROCKET.

[NOISE] GENERALLY WHEN THAT HAPPENS AND HELP ME WITH THE NUMBERS,

[02:15:04]

THE COUNTY INQUIRY, WE GET A TWO PERCENT PER YEAR INCREASE IN THE [INAUDIBLE] TAX.

WE'RE GOING TO BE SEEING A LOT OF INTERESTS OVER THE NEXT FEW YEARS AND PROPERTY TAXES AND I UNDERSTAND PROPERTY TAXES THAT ARE PAID AS WELL IN GENERATOR.

WAS THAT ALL CONSIDERED IN OUR FUTURE FORECASTS OR DO WE JUST TRY TO STAY AS CONSERVATIVE AS WE POSSIBLY CAN ON THESE FORECASTS? [NOISE]

>> NO WE DO BUILD OUT THE TWO PERCENT AND THE ASSESSED VALUE.

WE TALKED TO COUNTY.

WE DISCUSSED WITH THE COUNTY WHERE WE THINK ASSESSED VALUES ARE COMING.

WE QUITE OFTEN RECEIVE THAT DATA FROM THE COUNTY.

WE ARE CONSIDERING THE UNCERTAINTY OF THE MORTGAGE RATES RIGHT NOW.

THEY ARE THE HIGHEST THAT THEY'VE BEEN IN 11 YEARS.

I THINK WE RECENTLY HEARD, WHICH WILL START TO BEGIN TO PUSH DOWN SOME OF THAT ACCELERATION OF WHAT WE'RE SEEING FOR HOUSING SALES.

OBVIOUSLY CARLSBAD IS A VIABLE CITY, LOW INVENTORY, SO [NOISE] OUR HOUSING MARKET HAS BEEN VERY ACTIVE.

BUT YES COUNCIL MEMBER, WE DO TAKE THAT INTO CONSIDERATION IN BUILDING UP THAT FORECAST.

>> THANK YOU. THAT'S ALL.

>> OKAY. FIRST OF ALL, I REALLY APPRECIATE TAKING THIS OPPORTUNITY TO ASK QUESTIONS AND ONE THE THINGS [INAUDIBLE], COUNCIL MEMBERS TRY AND DO IS LISTEN AND LISTEN VERY CLOSELY TO THOSE PEOPLE, ESPECIALLY OUR SPEAKERS AND INTO THE COMMUNITY.

IT WAS INTERESTING TO ME ABOUT TWO, IT'S EITHER ONE OR TWO COUNCIL MEETINGS AGO, WE HAD A WOMAN I BELIEVE THAT THIS NAME IS VICKI SCIENCE WHO STOOD UP AND MADE A COMMENT THAT WE HIRED OVER 100 PERSONNEL IN THE LAST FOUR OR FIVE YEARS.

WAS THAT A TRUE STATEMENT?

>> ZACH, DO YOU WANT TO BRING UP OUR PERSONNEL CHART? [NOISE] WE ACTUALLY PUT TOGETHER THE CHART HERE SO THAT YOU CAN SEE OUR PERSONNEL RELATIVE TO THE EXPENDITURE GROWTH.

JUST A MINUTE. THERE WE GO.

ZACH, DO YOU WANT TO TALK TO THIS.

>> SURE. THIS IS THE JUST ABOUT THE SAME CHART THAT WE SAW ON A PREVIOUS SLIDE WHEN WE WERE LOOKING AT THE GENERAL FUNDS, REVENUES EXPENDITURES, AS WELL AS THE TRANSFERS.

BUT IN THIS SLIDE, WE'RE ALSO HAVING A LOOK AT THE FULL-TIME EMPLOYEES.

I WILL FOOTNOTE THIS AND MENTION THAT PART-TIME EMPLOYEES ARE NOT INCLUDED IN THIS GRAPHIC.

BUT WE ARE LOOKING AT FULL-TIME.

WHAT WE CAN SEE HERE, GOING BACK TO THE TIMES AROUND THE GREAT RECESSION STARTING IN 2007, WE SAW THAT THE RELATIONSHIP OF THE RATIO BETWEEN FULL-TIME EMPLOYEES WITH THE RESPECT TO GENERAL FUND REVENUES AND EXPENDITURES.

WE SAW THE TIGHTENING, REDUCTION OF STAFFING LEVELS THROUGH ATTRITION FOR ABOUT FIVE OR SIX YEARS TO FOLLOW.

THEN WE SAW AN INCREASE IN FULL-TIME EMPLOYEES STARTING IN FISCAL YEAR 14,15 15,16 UP UNTIL TODAY.

I BELIEVE AT THE LOWEST LEVEL.

YOU CAN'T SEE IT FROM HERE, BUT I DO HAVE A COPY OF THE SLIDE.

>> SOMEWHERE [INAUDIBLE] NUMBER OF EMPLOYEES.

>> RIGHT. IN 2007, 2008, THE CITY HAD APPROXIMATELY 711 FULL-TIME EMPLOYEES CITYWIDE.

THAT WAS REDUCED TO A LOW POINT IN FISCAL YEAR 14 AND FISCAL YEAR 15, TO APPROXIMATELY 670.

SINCE THEN THE CITY IS NOW AT 782.

>> THE LAST TWO BUDGET CYCLES WAS MY QUESTION.

HOW MANY EMPLOYEES HAVE BEEN HIRED SINCE 18?

>> SINCE FISCAL YEAR 18.

ABOUT 70 OR 80 [INAUDIBLE].

>> HOW MANY OF THOSE WITH MANAGEMENT?

>> I DON'T KNOW OFF THE TOP OF MY HEAD?

>> NO, I DON'T KNOW THAT.

>> WHAT DOLLAR AMOUNT DOES THAT REPRESENT IN AN YEAR?

>> WE HAVEN'T LOOKED AT THAT COST [OVERLAPPING].

>> I DON'T HAVE THAT OFF THE TOP OF MY HEAD NOW.

I CERTAINLY DIDN'T HAVE INFORMATION.

>> I JUST SAY THIS BECAUSE WE'RE STANDING HERE ASKING THE PUBLIC FOR MONEY.

WE NEED TO FIRST LOOK AT WHO WE ARE AND WHAT WE'VE CHANGED HERE OVER THE LAST FOUR YEARS.

IN THE LAST FOUR YEARS, ALSO WE'VE BEEN MORE OR LESS GONE FROM VISIONARY COUNCIL TO MORE OF A MICRO MANAGING COUNCIL.

BUT THOUGH WE'RE AT 170, I LOST COUNT.

WELL OVER A 100 [INAUDIBLE].

DO WE HAVE ANY IDEA WHAT THOSE COSTS WERE?

[02:20:01]

>> I DON'T HAVE THOSE HAND IN THERE.

>> OKAY.

I'VE DRILLED DOWN ON ONE WHEN WE HAD THREE PEOPLE SPEAK ABOUT MAKING ADVENTURE THE TRANSFER, THAT WAS ABOUT $25,000 ADVENTURE JUST TO DO WELL, LOOK AT THAT.

WHEN WE THINK ABOUT WHO WE ARE AND HOW WE'RE MANAGING THE CITY, I THINK THERE NEEDS TO BE A REAL CONVERSATION ABOUT FIVE OF US.

DO WE WANT TO BE MICROMANAGERS? BECAUSE THERE'S A HUGE COST TO DOING BUSINESS THAT WAY VERSUS BEING A VISIONARY.

WHEN YOU THINK ABOUT HOW WE MOVE FORWARD AND WHAT WE WANT TO OFFER OUR CITIZENS IN THE PAST, I'LL JUST GIVE SOME EXAMPLES.

WE TALKED ABOUT 56 BILLION BUT THAT WAS THE NUMBER AND THAT COUNCIL MEMBER SPOKE TO WAS WHAT WE PAY IN CASH ABOVE AND BEYOND FOR PURSE.

WE SPENT, I BELIEVE 22 BILLION IN CASH FOR THE SAFETY TRAINING FACILITY, THAT WAS MONEYS THAT WE WERE ABLE TO TAKE OUT OF OUR RESERVES.

SOMEONE SPOKE TO THE GOLF COURSE AND HOW WE ARE STILL SPENDING MONEY ON THE GOLF COURSE.

I THINK THE LAST COUPLE OF BUDGET IS SHOWING THAT WE'VE BEEN MAKING A PROFIT ON THAT.

IN FACT, WE PAID OFF THE BONDS AFTER 10 YEARS, WHICH I BELIEVE WAS ABOUT 30 MILLION DOLLARS.

THEN THE SWIM COMPLEX, ELEGANT ORIENTATE, THAT WAS AN 18 BILLION DOLLAR COST ABOVE AND BEYOND WHAT THE PARTNERS ORIGINALLY THAT WE PAID OFF IN CASH.

IT'S INTERESTING TO ME TODAY WHERE WE'RE DOWN LOOKING, OUR LINES ARE CROSSING.

I THINK FIRST WE NEED TO GO BACK AND LOOK AT WHO WE ARE AND HOW WE'RE DOING BUSINESS AND BE HONEST WITH THE PUBLIC WITH WHAT THEY WANT AND EXPECT.

A LOT OF THIS IS ABOVE AND BEYOND GROWTH MANAGEMENT.

I THINK THERE IN LIES WE REALLY NEED TO HAVE A CONVERSATION.

WITH THAT LET'S TAKE A FIVE-MINUTE BREAK AND GO GET OUR LUNCH, THEN WE COME BACK AND WE CAN GET INTO ANY OTHER QUESTIONS FOR OUR FINAL COMMENTS.

LET'S GO TO COMMENTS AND WE'LL START AGAIN WITH YOU MR. GORDON.

THANK YOU MAYOR. I KNOW THAT MY AUDIO WAS A LITTLE DIFFICULT EARLIER ON.

I JUST WANT TO THANK OUR STAFF FOR MOVING MOUNTAINS TO BE ABLE TO ALLOW THEM TO PARTICIPATE.

I'M GOING TO TAKE JUST A FEW MINUTES HERE AND SEVERAL DEGREES AND SHE'S SAYING EACH ONES WILL BE PROPERLY TRAINED.

A QUARTER MILLION AND A HALF MILLION DOLLARS, PROBABLY 15-20 EMPLOYEES.

WHEN I DID THAT, WHEN I MADE A DECISION TO DO THAT, I OBVIOUSLY LOOKED AT WELL, WHAT HAPPENS IF I DO WELL, HOW DO I MANAGE MY GROWTH? HOW DO I HIRE MORE PEOPLE? WHAT'S MY PLAN FOR THAT? PERHAPS IN 50 PERCENT OF MY TIME, SPEAK OUT WHAT WILL HAPPEN IF WE DON'T GROW UP? WHAT HAPPENS IF I MISS THE MARK AND WHAT'S MY EXIT STRATEGY? HOW DO I HANDLE MY EMPLOYEES? I THINK IT'S A QUESTION THAT EVERY ENTREPRENEUR ASKED THEMSELVES AND TO OFFER THEM THE ONLY THING ABOUT WHAT HAPPENS WHEN TIMES ARE GOOD AND WHAT CAN HAPPEN WHEN TIMES ARE BAD? THIS WHOLE DISCUSSION PHASE IS GREATLY APPRECIATED.

WHERE WE LOOKED INTO A WINDOW IS FOUR OR FIVE YEARS OUT WE WOULD SEE LINES CROSSING AND WE SAY, "MAYBE SOME PROBLEMS THAT HAD REMARK OF OUR VIEW AND THEN HERE ARE SOME THINGS WE CAN DO." I THINK IT'S A GREAT DISCUSSION AND I WANTED TO APPLY OUR PRIOR COUNCIL FOR APPROVAL AND SOBER AND THEN FOR STAFF FOR BRINGING INFORMATION FORWARD TO US.

AS I LOOK ACROSS THAT, I WOULD GET TREMENDOUS GROWTH USEFUL FOR 20,000 PEOPLE, OVER 113,000 PEOPLE.

THE LAST PERIOD, 40 YEARS, A LOT OF CIVIC PROJECTS HAPPENED WITH A LOT OF GROWTH AND CITY STAFF AND I THINK OUR RESIDENTS, MYSELF INCLUDED WE'RE JUST OVERJOYED AT THE AMOUNT OF PRODUCTS THAT ARE COMING OUT OF THE GROUND THAT WE'VE HAD FOR THE PUBLIC, WHETHER IT'S APART FOR FIRE SUITS, OR LIBRARY OR WHAT HAVE YOU OR INCREASED SERVICES.

BUT WE'RE TRANSITIONING NOW.

WE'RE TRANSITIONING TO BECOMING A MORE SUSTAINABLE CITY AS OPPOSED TO A CITIZEN.

A LITTLE BIT OF GROWTH PHASE.

THAT BREAKS SOME CHALLENGES AND ONE OF THEM IS TO OPERATE SUSTAINABLY.

I THINK THE VERY NATURE OF THAT IS TO BE AWARE OF WHAT YOU'RE TAKING IN AND BE AWARE OF YOUR STUDY AND STRIKE THE BALANCE BETWEEN THOSE TWO.

IT'S DIFFERENT TODAY THAN IT WAS 20 YEARS AGO ON GROWING DEVELOPERS WERE PAYING FOR OUR INFRASTRUCTURE.

WE'RE NOT GROWING AT THAT RATE ANYMORE.

[02:25:01]

I KNOW THERE'S THREE WAYS.

ONE WAY IS WHAT WE SPENDING NECESSARY IN TERMS OF STAFF OVERHEAD.

WHAT ARE WE GENERATING IN TERMS OF INCOME.

THE THIRD WAY OF LOOKING AT IT IS, WHAT'S OUR APPETITE FOR NEW MARKETS TO DEVELOP IN THE CITY THAT WE AS TAXPAYERS HAVE FOR TO PAY FOR.

THE MAYOR MENTIONED SEVERAL OF THEM AND WE PAID CASH FOR WHETHER IT'S FINALLY AT 40 MILLION, 60 MILLION.

THERE ARE SEVERAL OTHERS AS WELL.

BUT I THINK THAT FOR ME AND MY 20 PERCENT TO BE ABLE TO MAKE SURE THAT I CAN LOOK THE CITIZENRY AND SAY WE'VE DONE EVERYTHING WE CAN TO CUT COST AT THE CITY AND WE HAVE DONE EVERYTHING WE CAN TO ELONGATE OUR CAPITAL IMPROVEMENT PROJECTS, I WOULD WANT TO BE SURE WE DO BOTH OF THOSE ITEMS FIRST BEFORE I EVER CAME TO CITIZENS AND ASKED TO RAISE YOUR TAXES.

WE HAVE MANY YEARS AHEAD OF US BEFORE THE LINE CROSSES.

I THINK THAT OUR REVENUE MODEL IS CONSERVATIVE, BUT I THINK WITH INFLATION, WITH HIGH PROPERTY TAXATION WE'RE GOING TO SEE WHAT REVENUE THAT'S BUDGETED.

I'M NOT CONVINCED THAT WE HAVE AN ACTUAL PROBLEM BASED UPON WHAT'S HAPPENING THIS YEAR.

I KNOW THAT IT'S ALWAYS HARD TO PREDICT THE FUTURE.

BUT THEN I'M ALSO VERY LUCKY THAT WE HAVE EXTREMELY HEALTHY.

AGAIN THE MPF MANAGING OUR RESERVES, BOTH INSURANCE OR OUR GENERAL FUND AND OUR ENTERPRISE AND THE AMOUNT OF MONEY THAT WE HAVE IN INVESTMENTS RIGHT NOW IN TERMS OF FUTURE PATH ADVISORS AND FUTURE PUBLIC WE'RE PARTNERS, ALLOWS US TO HAVE A CUSHION.

I THINK THAT FOR ME I SHOULD GO FORWARD NOT TO RECEIVE THIS REPORT TO FILE, NOT TO HAVE ADDITIONAL FOLLOW-UP.

AS WE GO FORWARD OF A YEAR OR TWO OR THREE, WE SEE THESE NUMBERS ARE GETTING CLOSER TOGETHER THAT WE DO SOMETHING AT THAT POINT IN TIME AND WE START WITH MANAGING OUR CITY, LOWERING COSTS WHERE WE CAN AND THEN CENTERING OUT WHERE IT WON'T GAVE YOU A CAPITAL RECRUITMENT AS WELL.

THAT WILL BE MY 20 PERCENT.

THAT'S WHAT MY FEELING IS, THAT WE SHOULD DO THOSE TWO THINGS FIRST, BEFORE WE ASK.

I GUESS I'LL BRIEFLY TOUCH ON TOT TASK.

IF THERE WAS ANOTHER, THE EQUIVALENT OF THE GOLDEN GOOSE, WHO'S A GEORGIAN INDUSTRY ACROSS THAT PROVIDING $27 MILLION, SOMEWHERE APPROACHING 30 BILLION IN THE NEXT YEAR OR TWO ARCH WHERE CITIZENS STAYS WITH US AND HASN'T GO TO SACRAMENTO COUNTY AND STAYS WITH US AND PROVIDES A LOT OF RESOURCES TO THE CITY.

AS I MENTIONED BEFORE, 810 TIMES PER CAPITA BUT SOME CITIES ARE.

IT'S NOT AN INDUSTRY THAT I WOULD GO TO AND ASK FOR MORE.

I'M VERY HAPPY TO PAY TAX THEMSELVES TWO PERCENT SO THEY CAN DO ALL THE MARKETING AND THE CITY DOESN'T HAVE TO PAY FOR ANY OF THAT.

CANVAS IS JUST NOT AT A NON-STARTER FOR ME AS FAR AS ENCOURAGING, I GUESS.

IF YOU NOTICE THAT, IT'S ACTUALLY NOT SURE FOR ME.

THAT CONCLUDES MY COMMENTS.

OKAY. THANK YOU VERY MUCH. THAT WAS A VERY GOOD CLOSE.

YES. THANK YOU. AS I SAID EARLIER, THIS IS A VERY SERIOUS CONVERSATION TO HAVE AND WE HAVE TO BE VERY RESPONSIBLE ABOUT OUR APPROACH.

THIS IS ONE OF THE ISSUES THAT OUR BUDGET AND OUR FINANCES THAT WE HAVE TO BE THE MOST CAREFUL ABOUT.

AS OUR FACILITATORS THAT EARLIER IT'S HELPING YOU TO HAVE THESE MESSAGES, MIDDLE CONVERSATIONS TOO.

SOMETIMES IT'S UNCOMFORTABLE BUT THAT ALLOWS US TO HAVE HONEST CONVERSATIONS ABOUT WHAT WE MIGHT CONSIDER DOING.

I THINK IN THE CASE OF THIS TOPIC OF RAISING REVENUE AND WAYS THAT WE MIGHT BE ABLE TO DO THAT, WHETHER IT'S SALES TAX OR SOMETHING ELSE, IS A BIT UNCOMFORTABLE AND IT'S MESSY.

SPEAKING THROUGH WHAT THE FUTURE LOOKS LIKE AND WHETHER WE NEED TO DO THIS RIGHT NOW, I DON'T THINK THAT WE NEED TO DO THIS RIGHT NOW.

I DO THINK THAT WE ARE GOING TO HAVE TO FIGURE SOMETHING OUT, BUT I THINK THAT RIGHT NOW, IN THIS YEAR, IN THIS MOMENT, IT'S NOT THE RIGHT TIME.

I KNOW THAT SOME OF THE CONCERNS ABOUT POSSIBILITY AND EXPENSES, JUST THESE AREAS AND DIEGO CARLSBAD METRO AREA BEING ONE OF THE MOST EXPENSIVE PLACES TO LIVE IN THE UNITED STATES RIGHT NOW.

THAT HAS BEEN REPORTED BY MANY NEWS OUTLETS.

I THINK THAT THAT'S SOMETHING THAT WASN'T EMPHASIZED OR MENTIONED MUCH BY OUR CONSULTANTS, BUT I KNOW IT TO BE TRUE AND I HEAR IT ALL THE TIME FROM PEOPLE.

I DON'T DRIVE THE GAS-POWERED CAR, BUT THE GAS PRICES ON TOP OF THAT MAKES LIFE REALLY HARD RIGHT NOW.

[02:30:03]

FOR PEOPLE WHO DON'T HAVE A LOT TO THOSE WHO ARE TRYING TO SAVE MONEY AND WHO WANT UP, AND WHO DON'T ALREADY HAVE HOUSE, I AM CONCERNED FOR PEOPLE.

I DON'T WANT TO HAVE A REGRESSIVE TAX THAT DOES FOR PEOPLE WHO ARE LOWER INCOME.

I UNDERSTAND THE IDEA OF EXCEPTIONS FOR GROCERIES AND PRODUCTS, BUT PEOPLE WHO ARE HIGHER INCOME PERSON GOES TO TARGET TO FIND HOUSEHOLD SUPPLIES IS GOING TO BE NOT MUCH HARMED BY INCREASES IN THE PRICES OR NOT AS MUCH HARD AS SOMEBODY WHO'S LOWER-INCOME PLUS PAYING THOSE SAME PRICE INCREASES.

I'M CONCERNED OF THE REGRESSIVE NATURE OF THOSE TAXES.

I'M ALSO CONCERNED ABOUT OTHER AGENCIES DOING THAT AS WELL RIGHT NOW.

I ACTUALLY DON'T THINK APPETITE IS THERE.

I THINK WE NEED TO LOOK AT COST-CUTTING, WE NEED TO LOOK AT OTHER THINGS THAT WE CAN DO RIGHT NOW TO TIGHTEN OUR BELTS AND TO BE VERY DISCIPLINED.

I THINK WE CAN REVISIT THIS IN TWO YEARS.

I GUESS THAT'S THE NEXT TIME YOU CAN POSSIBLY DO THAT FROM WHAT I UNDERSTAND FROM THE CONSULTANTS.

IT HAS TO BE IN AN EVEN NUMBERED NOVEMBER ELECTION, WE CAN POSSIBLY DO THIS.

THAT'S WHERE I SIT RIGHT NOW.

I'M GRATEFUL FOR THE INFORMATION THOUGH.

I THINK THAT WE NEEDED THE DATA, YOU CAN'T JUST RELY ON YOUR GUT TO MAKE THAT DECISION OR ON WHAT YOU HEAR FROM YOUR NEIGHBORS AND YOUR FRIENDS ARE HAVING FEEL.

YOU HAVE TO LOOK AT THE DATA AND YOU HAVE TO LISTEN TO OTHER PEOPLE WHO ARE PROFESSIONALS WHO ARE COLLECTING THAT DATA.

THANK YOU FOR THE CONVERSATION AND I'M PLEASED TO HAVE HEARD THAT INFORMATION AND LOOK FORWARD TO NEXT CONVERSATION ON THE NEXT TOPIC TODAY. THANK YOU.

>> THANK YOU AND I TOO I PUT SENTIMENTS FROM THE TWO PREVIOUS COUNCIL MEMBERS.

I THINK THAT AT TIMES IT'S NOT NECESSARY FOR US TO MOVE FORWARD WITH PURSUING A [INAUDIBLE] THAT WOULD LOOK AT THE SAME SALES TAX.

I THINK THAT I FEEL THAT WE'RE PHYSICALLY HEALTHY AND I KNOW I ASKED THEM A FEW TIMES AND I DO THINK WE HAVE OPPORTUNITIES TO LOOK AT WHERE ELSE WE CAN FIGURE OUT WAYS TO CONTINUE TO BE JUST CONSERVATIVE AND PHYSICALLY HEALTHY AS WE MOVE FORWARD.

FROM MY PERSPECTIVE, I'M HAPPY WE'RE RECEIVING THIS REPORT TODAY AND I REALLY APPRECIATE THE TIME THAT WAS PUT INTO [INAUDIBLE]

>> [NOISE] I HAD A WHOLE PAGE OF REASONS WHY I WAS GOING TO SAY NO BUT I DON'T THINK I HAVE TO RECITE IT ALL.

THANK YOU STAFF, WE UNDERSTAND THAT IT WAS NECESSARY FOR YOU TO BRING THIS AS AN OPTION BUT AT THIS POINT I'M GOOD.

>> AGAIN, I CAN'T THANK EVERYONE ENOUGH FOR HAVING THIS OPPORTUNITY.

ONE OF THE THINGS THAT I'VE PROBABLY BEEN IN THIS POSITION WAY TOO LONG, HAVING THE OPPORTUNITY TO SERVE THIS COMMUNITY FOR ALMOST 30 YEARS AS A COUNCIL MEMBER AND 10 YEARS PRIOR TO THAT AS A PLANNING COMMISSIONER.

YOU WATCH TRENDS AND HOW THINGS HAVE HAPPENED AND HOW AND WHY THEY SAY PLACE.

IN CARLSBAD IN THE PAST WAS KNOWN AS PART OF BEING IN THE TOP THREE CITIES OF THE STATE AND WE USED TO COMPETE AGAINST THOSE OTHER THREE CITIES.

WE USED TO HAVE ONGOING DIALOGUE ON A REGULAR BASIS, STAFF AMONG STAFF TRYING TO BE ON THE CUTTING EDGE OF WHAT THE FUTURE LOOKS LIKE.

TODAY WE'RE COMPETING WITH THE JONASES, THE JONASES THAT WE HAVE TO DO IT.

I SAY THAT AND ALSO IN RESPECT TO SOME OF THE PEOPLE IN THE COMMUNITY WHO WILL COME UP AND YOU HAVE ONE OR THREE COUNTY [NOISE] COMMUNITY MEMBERS COME UP SAY "WE GOT TO DO THIS." GOVERNMENT CANNOT BE ALL THINGS TO ALL PEOPLE, THEY CANNOT BE ALL THINGS TO ALL PEOPLE.

WHAT'S DRIVEN THIS CITY WAS A GROWTH MANAGEMENT PLAN AND THE TIME THAT WAS PUT IN PLACE, THE STANDARDS WERE THE HIGHEST OF ANYWHERE.

THE DEVELOPMENT COMMUNITY SAID IT WILL NEVER BUILD IN THE CITY OF CARLSBAD.

FAST FORWARD LOOKING AT WHO WE ARE TODAY, LOOK AT OUR ROADS, OUR WATER, OUR SEWER, OUR OPEN SPACE AND EVERYTHING THIS COMMUNITY HAS.

BUT WHAT'S CHANGED IS, IT HAS SO MUCH COMPASSION FOR SCOTT AND STAFF.

EVERY TIME WE DO A MINUTE MOTION, I DON'T THINK THEY HAVE ANY IDEA OF THE LOAD THAT WE PUT ON OUR STAFF, AND THE TIME AND THE ENERGY IT TAKES TO CREATE AN AGENDA ITEM.

I MADE REFERENCE TO ONE ITEM ABOUT A TREE STUFF AND HOW MANY CONSULTANTS WE HAD TO HIRE, AND OVER SIX OR A NINE MONTH PERIOD HOW WE STUDIED THAT.

WE TAKE THAT TIMES A HUNDRED PLUS, THAT BECOMES THE NUMBER.

I THINK THE COMMUNITY NEEDS TO UNDERSTAND THAT WHEN WE BRING AN ACT,

[02:35:04]

OUR CITY MANAGER JUMPS RIGHT ON IT AND GOES FORWARD BUT THAT IS A COST.

WHEN YOU LOOK AT THE AMOUNT OF STAFF THAT'S INCREASED OVER THE LAST FOUR YEARS AND THE AMOUNT OF TIME AND ENERGY WE PUT IN A LOT OF THESE THINGS AND I CAN'T EVEN REMEMBER HARDLY ANY OF THEM.

IT HASN'T BEEN HOW WE IMPROVE OUR COASTLINE, PRESERVE OUR BEACHES OR DO VISIONARY THINGS.

IT'S JUST ISN'T HAPPENING ANYMORE, WE AREN'T SPENDING THE TIME ON IT THAT WE REALLY SHOULD AND THAT'S WHO WE WERE.

TO ME TODAY I THINK PART OF THE CONVERSATION WE NEED TO HAVE IS ARE WE GOING TO CHANGE OUR FOCUS.

IF SO THAT PROBABLY SHOULD BE PART OF THE CONVERSATION THAT OUR TEAM THAT'S DOING GROWTH MANAGEMENT TOO.

I WOULD JUST LIKE TO HEAR COMMENTS ON THAT FROM MY COLLEAGUES, DO WE REALLY WANT TO CHANGE THE DIRECTION OF THE CITY? OR DO YOU WANT TO DO WHAT WE'VE DONE IN THE PAST THAT HAS MADE US GREAT? IF YOU GO BACK FOR THE LAST 15 YEARS OR SO, EVEN '07, 08, '09 WE KEPT THIS CITY RUNNING.

I WAS MAYBE MENTIONED TO THIS THE OTHER DAY AND I WAS CORRECTED THAT WE NEVER LET A PERSON GO, WE LET ONE PERSON GO.

YES OUR NUMBERS WENT WAY DOWN, WE WERE THE ONLY CITY THAT KEPT EVERY PART, EVERY LIBRARY OPEN THE SAME AMOUNT OF HOURS.

NO OTHER CITY DID THAT, THAT'S BECAUSE WE WERE FINANCIALLY SOUND AND WE REACTED TO THE TIMES.

IN FACT, IN THAT CASE WE REACTED ALMOST A YEAR AHEAD OF TIME, WE SAW IT COMING AND WE REACTED.

IT'S LIKE RIGHT NOW WE SEE DIFFICULT TIMES COMING AND IF YOU LOOK AT PAGE 5 OR 7, THE LAST BULLET POINT IN WHICH STAFF IS RECOMMENDING IS THAT DEPARTMENTS TO REDUCE THEIR ANNUAL BUDGETS BY TWO PERCENT.

THEY'RE ON THE RIGHT TRACK, THEY SEE IT COMING, THEY'RE STARTING TO REACT BUT WE HAVE TO DO THAT ONE YEAR, TWO YEARS, THREE YEARS, FOUR YEARS.

WE CAN GET THROUGH THIS, THAT I THINK WE NEED TO REALLY LOOK AT OURSELVES AND SAY, "WHO DO WE WANT TO BE? WHERE DO WE WANT TO GO?" DO WE WANT TO BE A CITY OF VISION, OR DO WE WANT TO MICROMANAGE OUR FUTURE? I THINK THAT'S THE BIGGEST QUESTION THAT WE NEED TO ADDRESS AT THIS MOMENT OF TIME.

[INAUDIBLE] DO YOU HAVE COMMENTS?

>> THANK YOU, MAYOR. I'M JUST SAYING, I CAN ONLY SPEAK FOR MY TIME ON THE COUNCIL.

I'M PROBABLY SIX OR SEVEN MONTHS IN RIGHT NOW.

I HAVE MADE ONE BIT OF MOTION AND I THINK THERESA HAS MADE [INAUDIBLE] THE OTHER WAY.

A SIMILAR OUTCOME I THINK YOU HAVE ONE COMING FORWARD ON THE FLAG ISSUE.

I THINK IF WE'RE DOING ONE OR TWO A YEAR AND THERE'S FIVE OF US AND WE'RE REPRESENTING OUR DISTRICTS AND OUR COMMUNITY, I THINK THAT'S APPROPRIATE, I DON'T SAY THIS ABUSE.

BUT IF WE'RE IN A SITUATION WHERE THERE'S 40 COMING A YEAR, 50 COMING A YEAR.

LARGE NUMBER, THAT CURRENTLY HAPPENED IN THE PAST TWO OR THREE YEARS.

THAT'S TOO MUCH, BUT I DON'T WANT US TO GO FROM 100 MOTIONS TO NOTHING.

I THINK THAT WE SHOULD HAVE THE ABILITY TO DO ONE OR PERHAPS TWO A YEAR AS WE BRING FORWARD.

I THINK OUR STAFF SHOULD BE RESPONSIBLE TO THE DISTRICTS RESIDENTS AND THEIR ELECTED REPRESENTATIVE OR IN MY CASE APPOINTED AND RESPOND TO THAT.

BUT IN GENERAL, I AGREE WITH YOU THAT WE CAN'T GO BACK TO A PLACE WHERE WE'VE GOT 50 OR 100 OF THEM, I'VE SEEN THAT.

THE SECOND PART OF YOUR QUESTION IN TERMS OF DO WE WANT TO DO OR DO WE WANT TO BE WHAT WE'VE ALWAYS BEEN, OR DO WE WANT TO CHANGE? I WOULD ANSWER THAT, PROBABLY A LITTLE SHOCKINGLY IN THE SENSE THAT WE DO WANT TO CHANGE.

WHAT I MEAN BY THAT IS THAT WE ARE NO LONGER A GROWTH RATE CITY.

WE ARE A CITY THAT IS RAPIDLY REACHING BUILD OUT AND SUSTAINABILITY IS BECOMING A BIG ISSUE FOR THE CITY.

NOT ONLY DOES OUR COUNCIL NEED TO CHANGE, I BELIEVE, BUT OUR CITIZENRY NEEDS TO CHANGE IN TERMS OF THEIR EXPECTATIONS BECAUSE IT WON'T BE LIKE THE LAST 30 OR 40 YEARS.

WE JUST CAN'T BUILD EVERYTHING AND PAY FOR EVERYTHING, AND THERE ARE A LOT OF WISHES AND WANTS, BUT I THINK WE CAN AGE GRACEFULLY AS A CITY THE NEXT 50 YEARS, 100 YEARS.

THE SOURCES HAVE SOMEWHERE ELSE.

IN DENMARK WHERE A LOT OF BUILDINGS AND A LOT OF COMMUNITIES ARE FIVE OR SIX, 700 YEARS OLD AND CARLSBAD'S ABOUT 75 YEARS OLD.

LET'S ASSUME I'M 100 YEARS OLD AND YOU'RE 100 YEARS OLD, AND WE WILL BE DIFFERENT AND WE DO HAVE TO CHANGE BUT I THINK IF WE AGE GRACEFULLY AND WE ARE SUCCESSFUL ENVIRONMENTALLY AND CULTURALLY IN OUR COMMUNITY, WORKING TOGETHER IN THIS COMMUNITY.

I'M HAPPY TO SEE OUR COMMUNITY SUPPORTIVE OF THE TAX.

THAT WAS REALLY HAPPENING HERE.

OUR CITIZENS, IF WE ASK THEM AND WE NEED IT,

[02:40:03]

THEY'LL STEP FORWARD AND THEY'LL DO IT.

BUT AS I MENTIONED BEFORE, I THINK THE COURTS HAVE BEEN SUSTAINABILITY IS LIVING WITH THAT AND NOT ALWAYS ASKING FOR MORE AND MORE.

THIS TIME WE CAN'T GO TO BUT WE SHOULD USE EXTREME CAUTION AND MAYBE ONCE OR TWICE IN THE NEXT 100 YEARS, AT THE TIME THIS ISN'T RIGHT FOR NOW.

I GUESS I WOULD BE GOOD JUST ASKING OUR CITIZENS TO UNDERSTAND THAT WE'RE TRANSITIONING AND THAT'S WHY WE'RE DOING A SUCCESSFUL THOUGHT WITH THE GROWTH MANAGEMENT PLAN.

WE JUST NEED TO AGE GRACEFULLY AND TO SUSTAIN WHAT WE HAVE, TO TAKE CARE OF WHAT WE ALREADY BUILT AND BE A LITTLE LESS OVER OUR APPETITE, A LITTLE BIT IN TERMS OF WHAT WE WANT THE CITY TO PAY FOR, TO BUILD IN THE FUTURE. THANK YOU.

>> THANK YOU, MAYOR.

IF I COULD JUST TO REMIND THE CITY COUNCIL TO RELATE YOUR COMMENTS TO THE AGENDA WHICH IS OUR FINANCIAL STATUS AND OUR MUNICIPAL REVENUE STUDY AS YOUR COMMENTS RELATED TO THAT.

I THINK THEY ARE APPROPRIATE BUT IF YOU WOULD LIKE TO HAVE A SEPARATE DISCUSSION ABOUT CITY VISION VERSUS MICROMANAGEMENT, WE SHOULD PROBABLY PUT THAT ON A FUTURE AGENDA. THANK YOU.

>> YOU DON'T THINK THAT INVOLVES ECONOMICS OF THE FUTURE?

>> I THINK IT'S A VALID TOPIC AS IT RELATES TO THE FINANCES WHICH IS WHAT'S BEEN NOTICED TODAY.

IT'S BROADER THAN OUR FINANCES AND OUR REVENUES WHICH IS WHAT'S BEING NOTICED TODAY AND THINKING ABOUT OUR FUTURE REVENUE.

>> OUT OF RESPECT OF COUNCIL MEMBER ACOSTA, DO YOU HAVE ANY COMMENTS?

>> I'M LISTENING VERY CLOSELY TO THE CITY ATTORNEY SO I GUESS I CAN'T EXACTLY ANSWER YOUR QUESTION THERE ABOUT THE MINUTE MOTION.

BUT I DO THINK THAT WE ARE GOING ABOUT THIS THE RIGHT WAY AND HAVING THIS PUBLIC WORKSHOP AND CONVERSATION IN FRONT OF THE COMMUNITY PUBLICLY, TRANSPARENTLY AND USING THE DATA THAT OUR [INAUDIBLE] STAFF HAVE GATHERED TO MAKE DECISIONS IS THE RIGHT WAY.

I THINK WE'RE DOING THIS THE RIGHT WAY AND I'M REALLY PLEASED WITH OUR CONVERSATION TODAY. THANK YOU.

>> DR. BHAT-PATEL, COMMENT?

>> NO. THANK YOU.

>> MR. BLACKBURN?

>> NOTHING. THANK YOU.

>> I DON'T KNOW IF ANYONE WANTS TO HAVE THIS CONVERSATION THAT I SAW THIS BEING PUT ON THE ECONOMICS QUESTION [NOISE] BECAUSE IT DOES EVERYTHING WE DO, POLICY ECONOMICS AND THE FUTURE COSTS OF THE CITY, SO I WILL GIVE TO THE CITY ATTORNEY, BUT I SAW IT IN AN ENTIRELY DIFFERENT WAY.

>> I DO WANT TO MAKE CLEAR THAT I DO BELIEVE THAT ESTIMATES [INAUDIBLE] SO IN CASE YOU'RE TALKING ABOUT ONLY THE ECONOMIC IMPACTS OF THOSE TWO BROAD CATEGORIES, IT'S PROBABLY THEY'RE GETTING NERVOUS AND USING OUR NEW TOPIC THAT'S NOT RELATED TO TODAY'S AGENDA.

>> YES, MR. BLACKBURN. ON THAT TOPIC, PART OF OUR ISSUE COMES FROM A PRIOR COUNCIL.

I THINK WHAT [INAUDIBLE] SAID IS ACCURATE, I THINK THAT THEY WERE TRYING TO BE A LITTLE BIT MORE RESTRAINED, I'D LIKE TO SEE US MAYBE PUT THIS OFF FOR SIX MONTHS, GIVE US A CHANCE TO JUST KEEP OURSELVES IN CHECK RATHER THAN LOOKING FOR. [NOISE]

>> I'M PERFECTLY HAPPY WITH THAT.

I UNDERSTAND WHERE THE COSTS ARE.

SOMETIMES THAT TAKES A LOT OF DIFFERENCE IN DOLLARS.

I WAS JUST GOING [INAUDIBLE].

WITH THAT, WE'D LIKE TO MOVE ON TO THE NEXT AGENDA ITEM.

ITEM 2, CIP PRIORITIES.

SUMMER, PICK IT UP.

>> THANK YOU, MAYOR HALL. GREAT. WE WILL SHIFT INTO ITEM NUMBER 2,

[2. CAPITAL IMPROVEMENT PROJECT PRIORITIES – Review the schedule and funding status of Capital Improvement Projects planned for the next five years and provide direction to staff on changes, if desired. (Staff contact: Paz Gomez, Public Works)]

WE WILL START A LITTLE BIT OF CONTEXT WITH CITY MANAGER CHADWICK AND SHIFT TO A STAFF PRESENTATION.

WE'LL HAVE ANOTHER OPPORTUNITY FOR PUBLIC COMMENT ON THIS SPECIFIC ITEM RELATED TO THE CIP PROJECTS PRIORITIZATION AND THEN WE'LL DIVE INTO A TWO-PART COMPONENT OF OUR DISCUSSION AS A COUNSEL.

WE'LL SEE HOW FAR WE CAN GET TODAY ON THAT DIALOGUE AND THEN IF WE NEED TO RECONVENE AS THE MAYOR SAID, WE WILL DO THAT.

I DO JUST WANT TO PAUSE FOR A MINUTE AS WE ARE IN BETWEEN THESE TOPICS TO THANK YOU FOR YOUR ENGAGEMENT.

THIS CONVERSATION AS I SAID, IT IS MESSY TO HAVE THESE CONVERSATIONS I THINK COUNCIL MEMBER ACOSTA EVEN SAID HERE'S THIS PART AND APPRECIATE THE RESPECTFUL DIALOG THAT'S HAPPENING, AND A BIG THANK YOU TO THE COMMUNITY FOR BEING HERE TO SHARE YOUR INPUT AND YOUR PERSPECTIVES ON THIS MATTER.

THIS IS THE PROCESS WE USE FOR THIS KIND OF CONVERSATION SO THANK YOU FOR THAT.

>> MAY I INTERRUPT FOR A SECOND?

>> YES, COUNCIL MEMBER [INAUDIBLE].

>> I JUST WANT TO MAKE SURE THAT OUR STAFF RESPONSIBLE [INAUDIBLE] FOR ITEM 1, I THINK YOUR MOTION MAY [INAUDIBLE] RECOMMENDATIONS BUT I JUST WANT TO MAKE SURE THAT THEY UNDERSTOOD WHERE COUNCIL WAS SINCE THERE WAS NO MOTION MADE.

>> YES, WE UNDERSTAND.

AGAIN, IT WAS CERTAINLY INFERRED ALTHOUGH THERE WAS

[02:45:03]

NO ACTION TAKEN OR NO FORMAL ACTION TAKEN.

>> WE ALSO ARE PRETTY GOOD AT READING THE ROOM. [OVERLAPPING].

>> I THINK WE UNDERSTAND.

>> THANK YOU.

>> JUST TO MAKE SURE WE'RE ALL ON THE SAME PAGE, ACCEPTED NO FURTHER ACTIONS TAKEN AT THIS TIME.

>> CORRECT.

>> OKAY, FANTASTIC.

I'M GOING TO TURN OVER TO CITY MANAGER CHADWICK TO SET CONTEXT FOR ITEM NUMBER 2.

>> GREAT THANK YOU SO MUCH, SUMMER.

OBVIOUSLY, THIS NEXT ONE ALSO INCREDIBLY COMPLEX, BUT WE REALLY WANT TO HAVE A FACILITATED DISCUSSION ABOUT THE PROJECT PRIORITIES, SPECIFICALLY OUR CAPITAL IMPROVEMENT PROJECTS.

NOW THE PACKET FOR TODAY'S MEETING INCLUDED A LIST OF PROJECTS, ESTIMATED COSTS, AS WELL AS WE'VE ADDED SOMETHING TO SHOW TIMELINES BECAUSE WE THINK THAT THOSE THREE ITEMS ARE INCREDIBLY IMPORTANT FOR THE COMMUNITY TO UNDERSTAND.

ULTIMATELY, THIS IS OUR CURRENT WORK PLAN OVER THE NEXT FIVE YEARS BASED OF YOUR PRIOR DIRECTION AS WELL AS PRIORITIES.

TODAY IS YOUR OPPORTUNITY TO LET US KNOW IF YOU'D LIKELY ANY CHANGES TO THE CAPITAL GROUP PROGRAM WORK PLAN.

AS YOU WILL LIKELY REMEMBER ME SAYING IN THE PAST, OUR STAFFING IS BASED ON THE WORK PLAN THAT YOU HAVE APPROVED.

IF YOU'D LIKE TO ADD TO THE LIST OF PROJECTS OR EXPLORE ACCELERATING THE PROJECT, WE'LL NEED TO COME BACK WHEN WE PRESENT THE BUDGET TO GO OVER OPTIONS FOR HOW TO ACCOMPLISH THAT.

THE TWO MAIN OPTIONS ARE TO DEPRIVATIZE OTHER WORK OR TO ADD STAFF AND RESOURCES.

SO AGAIN, THOSE ARE THOSE TWO MAIN OPTIONS.

WHICHEVER APPROACH YOU PREFER, WE'RE HERE TO SUPPORT CITY COUNCIL IN ACHIEVING YOUR GOALS.

WITH THAT SAID, I'LL GO AHEAD AND TURN IT OVER TO PAUSE.

I WILL PROVIDE YOU AN OVERVIEW OF OUR CAPITAL PROJECTS OR PROGRAM, AND THEN I WILL BE FOLLOWED BY DR. HURLEY TO FACILITATE THE DISCUSSION PROCESS.

>> THANK YOU.

>> CITY MANAGER CHADWICK.

GOOD AFTERNOON, MAYOR.

MAYOR PRO TEM AND COUNCIL MEMBERS, MY NAME IS [INAUDIBLE] DEPUTY CITY MANAGER FROM PUBLIC BOARDS BRANCH, WE MAY OVERSEE THE CAPITAL IMPROVEMENT PROGRAM.

TODAY WE ARE HERE IN RESPONSE TO YOUR REQUEST TO HAVE A DISCUSSION ABOUT UPCOMING CAPITAL IMPROVEMENT PROJECTS.

SPECIFICALLY, YOU ASKED TO HAVE AN OPPORTUNITY TO REVIEW HOW THEY ARE PRIORITIZED, AN EVEN BETTER UNDERSTANDING OF WHAT PROJECTS MAY NEED [INAUDIBLE] DUE PROCESS REQUIREMENT, WE MAY NOT SPEND MORE THAN ONE MILLION DOLLARS IN GENERAL FUND MONEY FOR THE ACQUISITION OF A PRIMITIVE PROPERTY WITHOUT FOLDER.

I SHOULD NOTE THAT THIS BOARD IS NOT INVOLVED INCREASING TAXES OR FEES OR ISSUING BONDS.

WE USED TO HAVE VOTERS APPROVE SPENDING MONEY THAT THE CITY ALREADY HAS.

WE HAVE ORGANIZED TODAY'S DISCUSSION TO FOCUS ON PROJECTS PLANNED FOR THE NEXT FIVE YEARS TO COINCIDE WITH THE PLANNING HORIZON FOR YOUR [INAUDIBLE] PLAN.

THIS ALSO PROPOSED A WAY TO NARROW THE DISCUSSION TO EXCLUDE THOSE PROJECTS THAT ARE REQUIRED BY REGULATIONS, [NOISE] FOCUS ON OTHER REASON COULD VERY DIFFICULT TO CHANGE AT THIS TIME.

OUR GOAL WAS TO GIVE YOU A MANAGEABLE NUMBER OF PROJECTS TO DISCUSS.

HOWEVER, IN YOUR PACKET, WE HAVE PROVIDED A LIST OF ALL THE PROJECTS PLANS FOR THE NEXT FIVE YEARS SHOULD YOU WANT A DISCUSSION.

WE'LL GO OVER SOME OF THE CONSIDERATIONS THAT CAME INTO PLAY.

CHANGING THE TIMING OF PROJECTS OR ADDING NEW PROJECTS AND WE HAVE PROJECT MANAGERS ON HAND TO ANSWER YOUR QUESTIONS.

FOLLOWING MY PRESENTATION AND PUBLIC COMMENTS, DR. SUMMER HURLEY WILL LEAD A FACILITATED DISCUSSION ABOUT CIP PRIORITIES AND ULTIMATELY INVITE MOTIONS FROM THE CITY COUNCIL IF YOU SAY YOU WOULD LIKE TO SEE CHANGES.

IF THE CITY COUNCIL ULTIMATELY DECIDES TO DIRECT STAFF TO MAKE CHANGES, WE WILL COME BACK IN MAY WITH A PRELIMINARY BUDGET PRESENTATION TO SHARE OPTIONS, WHICH COULD [NOISE] INCLUDE REQUESTING ADDITIONAL RESOURCES OR DEEP PRIORITIZING THE WORD AS NEEDED.

[NOISE] WE WANTED TO FIRST DEFINE WHAT WE ARE TALKING ABOUT TODAY.

CAPITAL IMPROVEMENT IS NOT A TERM MOST PEOPLE OUTSIDE GOVERNMENT ARE FAMILIAR WITH.

FOR THE BENEFIT OF COMMUNITY MEMBERS THAT MAY BE WATCHING TODAY, A CAPITAL IMPROVEMENT PROJECT TYPICALLY REFERS TO SOMETHING INVOLVING A STRUCTURAL CHANGE OR RESTORATION OF PROPERTY OR AN ASSET, OR SOMETHING THAT ENHANCES ITS VALUE OR PROLONGS ITS USEFUL LIFE.

IT CAN ALSO REFER TO A PROJECT THAT ADAPTS AN ASSET OR PROPERTY TO NEW USES.

THERE ARE DIFFERENT TYPES OF CAPITAL IMPROVEMENT PROJECTS.

MOST TEND TO BE FOCUSED ON THE NUTS AND BOLTS OF RUNNING A CITY,

[02:50:03]

THINGS LIKE CLEANING ROADS AND MAINTAINING OUR SEWER SYSTEM.

SOME CAPITAL IMPROVEMENT PROJECTS ARE DESIGNED TO ENHANCE THE QUALITY OF LIFE, LIKE THE NEW PARK.

IN PREPARING FOR TODAY'S MEETING, STAFF LOOKED AT OUR ENTIRE CAPITAL IMPROVEMENT PROGRAM WHICH HAS 288 PROJECTS [INAUDIBLE] 10 YEARS.

OF THE 288 PROJECTS, 120 ARE NOT PLANNED UNTIL 2027 OR BEYOND, AS SHOWN TO THE RIGHT OF THE PIE.

THAT STILL LEFT 168 PROJECTS OF THOSE PLANNED FOR THE NEXT FIVE YEARS.

YOU'LL FIND SOME CRITERIA TO HELP NARROW THE LIST A LITTLE BIT MORE.

WE STARTED BY LOOKING AT PROJECTS THAT ARE REQUIRED BY LAWS OR REGULATIONS OR ADDRESSED AT URGENT HEALTH OR SAFETY NEEDS OR ARE NEEDED TO MAINTAIN A MAJOR CITY ASSET LIKE THE PRINTS TO A LOT OF SYSTEMS. THEY ALSO SCREEN THEIR PROJECTS ALREADY UNDER CONSTRUCTION.

OUR THINKING THERE WAS THAT CHANGING THE TIMING OF A PROJECT UNDER CONSTRUCTION WOULD BE VERY DISRUPTIVE AND MIGHT NOT END UP SAVING MUCH MONEY IN THE LONG RUN.

THAT LEFT US WITH 55 REMAINING PROJECTS PLANNED OVER THE NEXT FIVE YEARS.

THESE PROJECTS SUPPORT ONE OR MORE OF YOUR STRATEGIC PLAN GOALS AND ALTHOUGH MANY HAVE ALREADY STARTED, THEY ARE AT A STAGE WHERE THEY COULD STILL BE RE-PRIORITIZED IF THAT IS SOMETHING THE CITY COUNCIL WOULD LIKE TO DO.

IN EXHIBIT 2, WE HAVE PROVIDED SOME INFORMATION TO HELP YOU GET A BETTER UNDERSTANDING OF WHERE EACH OF THESE PROJECTS IS IN THE PIPELINE.

IN THE STATUS COLUMN, WE HAVE LISTED IF A PROJECT HAS STARTED AND WHETHER IT'S IN THE INITIAL PLANNING STAGE OR ALREADY BEING DESIGNED.

WE DO HAVE PROJECT MANAGERS AND DEPARTMENT DIRECTORS AVAILABLE IF YOU HAVE QUESTIONS OR WOULD LIKE MORE INFORMATION ABOUT [NOISE] ANY OF THESE PROJECTS.

I WOULD LIKE TO MENTION A FEW CONSIDERATIONS THAT MAY COME INTO PLAY AS WE DISCUSS POTENTIAL CHANGES TO THESE PROJECTS.

RIGHT NOW, ALL OF THESE PROJECTS [NOISE] HAVE BEEN ASSIGNED OR SCHEDULED TO BE ASSIGNED TO STAFF.

IF YOU WOULD LIKE TO DEPRIORITIZE A PROJECT TO [INAUDIBLE] STAFF HOURS FOR ANOTHER PROJECT, THE STAFF HOURS MADE AVAILABLE MAY OR MAY NOT BE THE RIGHT LEVEL OF [INAUDIBLE] [NOISE] OR THE RIGHT SKILLS AND EXPERTISE NEEDED FOR THE NEW PROJECT.

FOR EXAMPLE, IF YOU WANTED TO DEPRIORITIZE THE WATER PROJECT BECAUSE THAT FEE THERE WOULDN'T BE THE RIGHT STEP TOWARD AN UNPACKED MARGIN.

SIMILARLY, THESE PROJECTS HAVE A VARIETY OF FUNDING SOURCES.

SOME OF THESE HAVE RESTRICTIONS OF FUNDING FEE [INAUDIBLE] BY TAKING A PROJECT OFF THE LIST MIGHT NOT BE ABLE TO BE SPENT [NOISE] ON A DIFFERENT PROJECT.

ANOTHER EXAMPLE OF A RESTRICTION IS THE USE OF GENERAL FUND MONEY.

IF A PROJECT USES MORE THAN A MILLION DOLLARS IN THE GENERAL FUND, THE VOTERS MUST 1ST APPROVE SPENDING THAT MONEY.

ONCE WE CONFIRM THE LIST OF PROJECTS AND TIMING FOR THE CITY COUNCIL, STAFF WILL RETURN WITH INFORMATION ON WHICH ONES WE NEED TO VOTE AND DURING WHAT TIMEFRAME.

THE 3RD CONSIDERATION IS THAT THERE ARE OFTEN MANY FACTORS OUTSIDE OF THE CITY'S CONTROL WHEN IT COMES TO HOW LONG A PROJECT TAKES TO COMPLETE.

AGAIN, OUR GOAL TODAY IS TO GIVE YOU ENOUGH INFORMATION TO HAVE AN INFORMED DISCUSSION BUT NOT TO TRY TO PRESENT ERROR-FREE POSSIBLE CONTINGENCY.

WE DO HAVE STAFF HERE WHO CAN PROVIDE THIS ADDITIONAL LEVEL OF DETAIL WHERE THAT WOULD BE HELPFUL TO YOU.

I WILL NOW TURN IT BACK OVER TO THE MAYOR FOR PUBLIC COMMENTS. THANK YOU.

>> OKAY, THANK YOU.

DO WE HAVE PUBLIC STATEMENTS ON THIS SIDE?

>> YES, WE DO. I WOULD LIKE TO START BY ASKING COUNCIL MEMBER NORBY IF THERE'S ANY PUBLIC SPEAKERS FOR ITEM NUMBER 2 AT THIS LOCATION?

>> THERE ARE NO PUBLIC SPEAKERS AT THIS LOCATION.

>> THANK YOU. OUR 1ST SPEAKER IS [INAUDIBLE] FOLLOWED BY CHRIS WRIGHT.

[NOISE]

>> CITIZENS OF CARLSBAD, I NEED YOUR HELP.

IN 2017, CARLSBAD CITIZENS 1ST BECAME AWARE THE PONTO PLANNING AREA WAS HARDLY CONSIDERED A SMALLER PARK OR WAS NEVER CONSIDERED AS REQUIRED BY CARLSBAD'S FORMER COASTAL PROGRAM.

[02:55:01]

WE ALSO SHOULD KNOW THAT THE CITY'S PARK [INAUDIBLE] IDENTIFIED PONTO IN COASTAL SOUTH CARLSBAD THIS AREA IS NOT SERVED BY CITY'S [INAUDIBLE] DISTRIBUTION PARKS.

FOR EXAMPLE, THERE ARE 10 COASTAL PARKS, TOTALING 37 ACRES IN NORTH CARLSBAD SERVING 38 PERCENT OF CARLSBAD'S POPULATION AND A MINORITY OF CARLSBAD'S VISITOR COMBINATIONS, YET THERE ARE ZERO COASTAL PARKS TOTALING ZERO PARK AID INCURSION IN SOUTH CARLSBAD THAT IS NOT SERVING 62 PERCENT OF CARLSBAD'S POPULATION AND THE MAJORITY OF CARLSBAD'S HIGH-VALUE VISITOR ACCOMMODATIONS INDUSTRY.

WE SHOULD ALSO KNOW THE CITY PLANS ARE LOSING 32 PLUS ACRES OF EXISTING COASTAL OPEN SPACE LAND THAT [INAUDIBLE] THE BEACH AT PONTO IN SOUTH CARLSBAD IN THE NEXT 30-PLUS YEARS WITH THE SEA LEVEL RISE.

WE SHOULD ALSO KNOW THAT SINCE 2001, THE CITY HAS KNOWN THAT THE VERY EXPENSIVE PCH RELOCATION PROJECT ONLY OPENS UP A FEW RELATIVELY SMALL, NARROW, SLIVERS OF USABLE LAND ON [INAUDIBLE] PONTO COASTAL, SOUTH CARLSBAD.

MOST OF THE CITY'S PCH LAND IS CONSTRAINED AND NOT REALLY VIABLE FOR A NEW PARK.

CITIZENS, PARKS AND COASTAL ADVOCATES AND THE VISITOR INDUSTRY HAS SINCE 2017 SENT YOU OVER 5,000 EMAILS AND PROVIDING YEARS OF REQUESTS WITH SUPPORTING DATA, ASKING THE COUNCIL TO PROVIDE AN EVEN PONTO PARK.

PONTO PARK WILL BE APPOINTED FOR THE CITY DUE TO A VARIETY OF REASONS THAT WE CAN TALK ABOUT LATER IF YOU SO DESIRE TO HAVE A DISCUSSION ABOUT.

CITIZENS ARE WONDERING WHAT'S CAUSING THE COUNCIL NOT TO PROVIDE A NEEDED, USABLE, ADEQUATELY SIZED DIMENSION AND AFFORDABLE PONTO PARK.

WE ASK YOU BECAUSE AVOIDING THE PARK UNFAIRNESS DATA IS CONFIDED TO AND NOT PROVIDING PONTO PARK, IN OTHER WAY CITIZENS EXTENSIVE DESIRES FOR PONTO PARK SHOULD NOT CONTINUE.

WHAT DO YOU AS A COUNCIL CHARGED WITH REPRESENTING CITIZEN DESIRES SUGGEST SHOULD BE DONE?

>> THE NEXT SPEAKER IS CHRIS WRIGHT.

>> THANK YOU. HELLO AGAIN.

I SPOKE A MONTH OR SO AGO REGARDING THE IMPORTANCE OF FISCAL RESPONSIBILITY AND SHOWED YOU A POWERPOINT OF THE MINERAL POOL.

I SPOKE AGAIN TODAY CONCERNING MY POSTURE AGAINST THE SALES TAX INCREASE.

WE MUST MAINTAIN WHAT WE ALREADY HAVE.

WE ALSO MUST CONSIDER WHAT IS FAIR TO OTHER MEMBERS OF OUR COMMUNITY IN DECIDING FOR OUR PROJECTS THAT WE WOULD LIKE FOR THE FUTURE AND TO WORK WITHIN OUR BUDGET.

PEOPLE IN THE SOUTHWEST QUADRANT WANT A NEW PARK.

I WAS PART OF A ZOOM MEETING WITH MR. [INAUDIBLE] IN COMMUNITY OUTREACH DISCUSSING THE LINEAR PARK.

IN THAT GROUP, THERE WERE 24 OUT OF 25 PEOPLE THAT DO NOT WANT THE LINEAR PARK, BUT THEY DID MENTION THE PONTO PARK.

I CAN'T SEE WITHIN THE HIGHLY CLUSTERED RESIDENTIAL HOMES, WHAT I CAN SEE IS PROVIDING A PARK THAT THE COMMUNITY MEMBERS CAN USE.

I LEARNED THAT A LINEAR PARK WOULD HAVE A NEW LAND USE OF VISITOR-SERVING COMMERCIAL, WHICH WOULD ALLOW HOTELS AND OTHER CRUCIAL DEVELOPMENT.

THE MINERAL POOL SERVES THE PEOPLE OF THE NORTH EAST AND WEST QUADRANTS.

AS YOU SAW IN MY LAST PRESENTATION, THAT POOL IS IN NEED OF DIRE REPAIR.

THAT ISSUE HAS ALREADY BEEN PASSED BY THE CITY COUNCIL AND FUNDS HAVE BEEN SET ASIDE.

WE NEED A NEW SAFE AND WORKING POOL THERE.

LET'S REALIZE THAT OUR RESIDENTS PAY THE MAJORITY OF FUNDING FOR THE GENERAL FUND VIA PROPERTY TAXES.

I HAVE DATA THAT PROVES THE GOLF COURSE IS STILL OPERATING AT A DEFICIT AND WE WILL NEVER SEE A REPAYMENT OF THOSE FUNDS BACK TO THE GENERAL FUND.

I WAS WRITING MY SPEECH JUST NOW, BUT I WANTED TO CONCLUDE IN THAT, WE'RE ALL CARLSBAD RESIDENTS AND WE ALL NEED TO CONSIDER OUR ENTIRE CITY TOGETHER.

I HOPE THAT RESIDENTS ARE CONSIDERED MORE SO THAN THE PLANS LIKE TRENCHING AND THE LINEAR PARK AND

[03:00:03]

OTHER THINGS THAT MAY NOT NECESSARILY BRING SATISFACTION TO OUR COMMUNITY.

I HIGHLY ENCOURAGE COUNCIL TO CONSIDER THE FACT THAT WE ARE ALL ONE COMMUNITY AND WE SHOULD SUPPORT EACH OTHER ON THE VARIOUS PROJECTS THROUGHOUT THE CITY.

THE PEOPLE FROM PONTO ARE VERY IN NEED OF A COMMUNITY PARK AND WE ARE IN NEED FOR OUR MINERAL POOL TO BE FIXED AND REPAIRED. THANK YOU.

>> THAT CONCLUDES ALL OF OUR SPEAKERS HERE.

>> ANY QUESTIONS? MR. NORBY.

>> ACTUALLY, MAYOR HALL, WE'D LIKE TO DO BRIDGES IN TWO PARTS.

THE FIRST ONE IS, WE'LL START WITH COUNCILOR NORBY, TO IDENTIFY WHICH PROJECTS YOU HAVE QUESTIONS ABOUT, NOT TO STATE THE QUESTION AT THIS POINT.

THEN I WILL PUT THOSE ON A LIST AND THEN WE'LL TAKE A QUICK RECESS IF NEEDED.

WELL, FIRST, I'LL ASK ANY OF THE COUNCIL MEMBERS TO STATE IF THEY HAVE ANY CONFLICT OF INTEREST RELATING TO THE PROJECT FOR QUESTIONS TO BE ASKED ON.

THEN WE'LL TAKE A QUICK BREAK TO LIST THOSE OUT IN AN APPROPRIATE ORDER TO EXCUSE COUNCIL MEMBERS AS APPROPRIATE, IF THERE'S CONFLICT OF INTEREST.

THEN WE'LL GET TO THOSE QUESTIONS, AND THEN WE'LL HAVE THE SECOND ROUND TIMED COMMITTEE TO THEN DIVE INTO ANY MOTIONS THAT WILL BE MADE RELATED TO ACCELERATING OR DECELERATING TIMELINES AND/OR ADDING OR REMOVING PROJECTS FROM THE LIST.

DOES THAT PROCESS MAKE SENSE?

>> YES.

>> GREAT. THE FIRST ORDER GOES FIRST TO COUNCIL MEMBER NORBY, AS WE HAVE BEEN DOING TODAY, AND JUST CAPTURE A LIST OF PROJECTS THAT YOU HAVE QUESTIONS OR STUFFED ABOUT. SO COUNCIL MEMBER NORBY.

>> GREAT. DO YOU HEAR ME?

>> YES.

>> THE FIRST QUESTION IS THAT WE HAVE A LIST OF PRIMARY RECOMMENDED TO CONTINUE PROJECTS.

THE QUESTION WOULD BE WHY ISN'T THE MONROE STREET POOL ON THAT LIST OF RECOMMENDED PROJECTS IN THE SENSE THAT COUNCILORS VOTED FOR A DOLLAR AMOUNT AND VOTED TO PUT IT ON THE BALLOT IN JUNE WHICH HAS NOW BEEN REVERSED? BUT I DON'T SEE DOLLAR AMOUNTS IN REVERSAL.

SO THAT WOULD BE QUESTION NUMBER 1 THAT I HAVE.

THE FACILITATOR IS GOING TO HAVE TO HELP ME HERE BECAUSE I DON'T REALLY HAVE QUESTIONS ON THE OTHER PROJECTS, BUT I DO HAVE PROJECTS THAT I'M INTERESTED IN, AND REASONS WHY [NOISE] I'M INTERESTED IN THEM IS YOU HAVE TO STATE THOSE AND PERHAPS YOU CAN CAPTURE THEM.

THAT SLIDE YOU CAN POST IT GOING ONE BY ONE.

>> LET'S DO THAT.

>> FIRST OF ALL, PUBLIC SAFETY, I'M VERY INTERESTED IN THAT.

SO THAT'LL BE A HIGH PRIORITY FOR ME.

MAINLY IS FOR REFURBISHMENT OF THE FIRE AND REGISTRATION BUILDING, THOSE KINDS OF THINGS, PUBLIC SAFETY.

NUMBER 2 ARE PROJECTS THAT ARE NEAR THE FINISH LINE, SO PROJECTS THAT HAVE MAYBE 75 PERCENT FUNDING ALREADY ACQUIRED AND THEY'RE JUST READY TO GO AND THEY'RE NEAR THE FINISH LINE.

THEY WILL BE A PRIORITY FOR ME TO GET THEM TO THE FINISH LINE.

NUMBER 3, I DON'T KNOW IF YOU'LL BE ABLE TO LOOK AT MY NOTES, THIS IS THE QUESTION.

WE HAVE THREE OR FOUR ITEMS THAT ARE 60 MILLION, 70 MILLION, 400, AND 600 MILLION.

AS ONE SPEAKER MENTIONED, THAT MERKEL SOLAR PROJECT, WHICH IS 50-80 MILLION.

BUT THE MERKEL SOLAR PROJECT, THERE'S SOME REVENUE ATTACHED TO THAT.

I HAVE NO IDEA WHAT THAT REVENUE IS.

IF THEY ASKED ME, WHAT IF MY SOLAR PROJECT WAS 30,000.

DO I WANT TO SPEND THE MONEY? THE ANSWER IS NO, I DON'T WANT TO SPEND 30,000.

BUT IF THE QUESTION IS YOU'RE GOING TO MAKE 100,000 OVER THE COURSE OF THE NEXT 20 YEARS? I'M LIKE, "OH, YEAH, I'LL SPEND THE 30,000.

SO IT'S A LITTLE BIT DIFFICULT TO ASSESS THAT AMOUNT REVENUE NUMBER.

THEY'RE ASSUMING THERE'S GOING TO BE REVENUE, BUT I DON'T KNOW WHAT IT IS.

THEN WITH THE RAILROAD TRACKS AND VILLAGE, IT'S NOT A SILLY PROJECT, IT'S NOT OUR PROJECT.

IT'S A FEDERAL RAILROAD ADMINISTRATION PROJECT, AND DONE BY THE FEDERAL AGENCIES AND THE STATE AGENCIES, AND IT'LL BE ADMINISTERED AS SUCH, AND PROBABLY THE DECISION [INAUDIBLE] LEVEL WHEN THAT HAPPENS.

I THINK OUR EXTRA ISSUE ACROSS OUR CENTRAL BAY PORTION OF THAT, A SMALL PORTION.

SO WHEN I SEE A $406 MILLION EXPENDITURE, IT SHOULD BE CLARIFIED THAT THERE'S NOBODY ON

[03:05:01]

THIS COUNCIL THAT WANTS TO SPEND 406 MILLION, EXCUSE ME, [INAUDIBLE] FREEWAY AND RAIL PROJECTS HAPPEN ALL OVER THE PLACE.

WHEN THAT PROJECT GOES FORWARD, I DO THINK THIS COUNCIL SHOULD BE INTERESTED IN SPENDING 30 OR 40 MILLION OR SOME NUMBER, 10 PERCENT OR SOMETHING TO MAKE THE PROJECT BETTER FOR US BY DOING A TRENCH AND DOING HALF ON TOP OF, PERHAPS, ONE BLOCK OF THAT TRENCH.

I DON'T KNOW IF THERE'S A WAY WE CAN PASS THAT OUT BECAUSE IF I LOOK AT THAT, WE ONLY HAVE 516,000 FUNDING AND THE PROJECT IS 406 MILLION OR LESS.

NOBODY CAN TAKE IT OFF THE LIST.

THAT'S REALLY NOT THE EQUATION HERE, BUT OUR CITIZENS THINK THAT THAT'S THE EQUATION.

I'VE NO DOUBT THIS IS GOING TO BE FEDERAL MONEY, STATE MONEY, REGIONAL MONEY AS ALWAYS, AS WITH RAIL AND FREEWAYS, AND THEN CARLSBAD WILL HAVE THE OPPORTUNITY TO MAKE A PROJECT JUST THAT MUCH BETTER FOR OUR CITY.

I DO WANT TO PARTICIPATE IN THAT CONVERSATION.

SO IT'S A LITTLE DIFFICULT FOR ME TO PRIORITIZE IN TERMS OF RATES, IF YOU UNDERSTAND THAT.

OTHER AREAS WHERE WE AGREED TO RECEIVE GRANTS.

I'M SPECIFICALLY THINKING ABOUT PEDESTRIAN LIGHTING AND ROUNDABOUTS.

IF WE GET BACK TO PARTNER WITH THAT MONEY, THAT MONEY WILL BE [INAUDIBLE] AND GET TO THE FINISH LINE AS WELL.

THAT CONCLUDES MY REMARKS.

>> COUNCILMEMBER NORBY, AND FOR THE REST OF YOU AS WELL, I NEED YOU TO IDENTIFY IF THERE ARE SPECIFIC QUESTIONS FOR THIS FIRST ROUND THEY CAN HAVE ABOUT THE PROJECT TO IDENTIFY WHAT THAT PROJECT IS SO WE CAN THEN ASK IF THEY'RE ANY CONFLICT OF INTERESTS FOR THOSE COUNCIL MEMBERS TO LEAVE.

COUNCILMEMBER NORBY, I THINK IF I'M HEARING YOU CORRECTLY, THE MONROE STREET POOL IS ONE THAT YOU'D LIKE TO SEE DISCUSSED FOR YOUR QUESTIONS ABOUT THE FIRE ADMINISTRATION BUILDING, SPECIFICALLY THAT'S ON THE LIST.

IF YOU WANT TO TALK TO ME ABOUT ANY PROJECTS IN THE FINISH LINE, OUR PRIORITY TO COMPLETE, ALTHOUGH BASED ON OUR STAFF PRESENTATION, THEIR THINKING IS THAT THOSE WILL CONTINUE TO FINISH.

THAT'S UP FOR DISCUSSION IF COUNCIL DOESN'T FEEL [INAUDIBLE] WORSE.

THEN IT SOUNDS LIKE YOU'D LIKE TO TALK ABOUT THE SOLAR PROJECTS AND THE RAILROAD TRENCH.

ARE THOSE CORRECT, COUNCILMEMBER NORBY? ARE YOUR QUESTIONS ABOUT THOSE?

>> YEAH. THE QUESTION IS I THINK THAT I DON'T HAVE THE INFORMATION THAT I NEED.

OF COURSE I WANT IT TO GO FORWARD AND OUT OF THE WAY THAT'S REPRESENTED HERE AND ACROSS THE CITY, 400 OR 600 MILLION, OR 50 OR 60 MILLION FOR A SOLAR PROJECT WITHOUT KNOWING WHAT THE INCOME IS.

IT'S A PROFITABLE REALIGNMENT RESERVE [INAUDIBLE] MONEY, FEDERAL MONEY, STATE MONEY.

I'M ASSUMING THERE'LL BE SOME OF THAT AS WELL.

SO JUST THE BIGGER NUMBERS.

I AT LEAST KNOW WHAT THE EXPECTATION IS DURING OUR BUDGET GENERAL FUND VERSUS OUTSIDE [NOISE].

THEN I SHOULD PROBABLY DISCLOSE I HAVE NO CONFLICTS ON ANY OF THESE.

>> THANK YOU. COUNCILMEMBER ACOSTA.

ANYTHING YOU'D LIKE TO ADD TO THAT?

>> THANK YOU. I DO WANT TO ECHO WHAT MY COLLEAGUE HAS SAID ABOUT SOME OF THESE PROJECTS.

IT DOESN'T EXACTLY SAY THAT WE'RE NOT GOING TO BE PAYING THAT FULL AMOUNT, AND YOU NEED TO HAVE A CONVERSATION BECAUSE THE COMMUNITY, FROM LOOKING AT THIS, MAY MISUNDERSTAND WHAT IT IS THAT WE'RE TALKING ABOUT.

SO I'M THANKFUL TO MY COLLEAGUE FOR POINTING OUT THAT ISSUE, AND AMONGST THOSE, I'D LIKE TO TALK ABOUT THE ONES THAT ARE ALREADY MOSTLY FUNDED; WE'VE SET ASIDE THE MONEY FOR MOST OF IT, LIKE FOR THE CITY HALL COMPLEX OR HAVE A VERY HIGH LIKELIHOOD OF FULL FUNDING FOR THE [INAUDIBLE].

SOME SPECIFIC THINGS THAT I JUST PULLED OUT OF THE LIST, AND I THINK THAT I'M FOLLOWING YOUR INSTRUCTIONS SURGICALLY, MONROE POOL DEFINITELY, THE SUSTAINABLE MOBILITY PLAN IMPLEMENTATION.

JUST VERY BRIEF QUESTION.

THE COMMUNITY GARDEN AT STAGECOACH CLOSE TO [INAUDIBLE] TRIP.

>> THAT WAS SUPER FAST. [LAUGHTER] WE ONLY HEARD STAGECOACH.

WHAT'S THE NEXT ONE?

>> THE COASTAL REALIGNMENT/ [INAUDIBLE]. [OVERLAPPING] [NOISE]

>> THANK YOU.

GREAT.

THEN SUSTAINABLE MOBILITY.

GREAT. COUNCILMEMBER PATEL.

>> THANK YOU. I'M LOOKING IN CASE OF WHAT'S GOING ON, THERE'S A LIST THAT WE HAVE WITH THREE PAGES, 1 THROUGH 55.

I DON'T [INAUDIBLE] THAT AS WELL.

GOING THROUGH THAT PROCEDURAL LIST, I'LL JUST GO AHEAD AND MOVE THROUGH IT.

[03:10:02]

I HAVE [INAUDIBLE] SOME ARE OVERLAPPING. SOME MAY NOT BE.

BUT NUMBER 2, WHICH IS AT ALAMEDA AND CNS AND PALOMAR AIRPORT ROAD PEDESTRIAN ACCESS IMPROVEMENT RIGHT AFTER THAT.

SIMILARLY, LET ME KNOW IF YOU NEED ME TO SLOW DOWN BECAUSE I KNOW THAT I'M A MOUTHFUL.

>> REPEAT THAT FIRST ONE.

>> NUMBER 3 IS ALSO ALAMEDA AND CNS, BUT THAT'S COASTAL ROUTE AND PEDESTRIAN IMPROVEMENTS.

>> THIS ONE, COASTAL TRIP.

>> YES.

>> GOT IT.

>> THEN SIMILARLY, I THINK COUNCILMEMBER NORBY ALREADY MENTIONED THIS, NUMBER 22 WHICH IS FIRE ADMINISTRATION BUILDING AND FLEET MAINTENANCE REFURBISHMENT, WHICH WAS RIGHT AFTER THAT, SO I'M SUPPORTIVE OF THOSE TWO AS WELL.

NUMBER 26 WAS THE COST OF [INAUDIBLE] EQUIPMENT.

I KNOW THAT'S BEEN MENTIONED BY [INAUDIBLE] FOR SOLAR PROJECT.

MONROE STREET POOL'S ALSO ON MY LIST.

CITY HALL IS ALSO ON MY LIST.

[NOISE] DEFORESTATION, SEVENTH, WAS ALSO ON MY LIST.

THE ORION CENTER, ALSO HAS THE ORION COMPLEX ENERGY STORAGE AS WELL.

SOLVE AN AUDITORIUM AND ART GALLERY IMPROVEMENTS.

COUNCILMEMBER NORBY, AND I BELIEVE ME [INAUDIBLE] HAD MENTIONED THE SOUTH CARLSBAD COASTLINE FOR REALIGNMENT.

>> THIS ONE?

>> YES. THEN SIMILARLY, THIS [INAUDIBLE]. THE COMMUNITY GARDEN.

THOSE ARE ON THERE, SUSTAINABLE MOBILITY PLAN IS ALSO IN THERE.

TYLER STREET, I DON'T THINK WAS ON THERE, [NOISE] SO I CAN TALK ABOUT UTILITY UNDERGROUND THING.

THEN THE VALLEY AND [INAUDIBLE] COMPLETE STREETS.

THAT WOULD BE ALL OF MY QUESTIONS.

>> SAY THAT LAST ONE AGAIN.

>> THAT ONE IS THE [INAUDIBLE] STREETS.

>> GREAT.

[BACKGROUND] DR. CURLEY, QUESTION [INAUDIBLE].

I THINK IF THERE IS A CONFLICT IT WOULD BE POSSIBLY ON THE CROSS OUT ANY TRAFFIC IMPROVEMENTS ONLY WITHIN THE 500 FEET OF MY HOUSE BECAUSE I LIVE RIGHT IN THE CORNER OF THE COSTA AVENUE AND ANOTHER STREET AND THE ADDRESS IS THE OTHER STREET AND [INAUDIBLE] HOUSE.

SO ONLY AS RELATES TO THAT 500 FEET [NOISE] OF IT ADDRESSED.

I DON'T THINK THAT THE ENTIRE PLAN [INAUDIBLE] FOR THAT.

>> PLEASE DO ALSO REMEMBER THAT WE HAVE ANOTHER VERSION IN OUR MUNICIPAL CODE AND IS GOING TO BE STRICTER THAN THE FBBC, THAT IS ACTUALLY IS 600 FOOT RADIUS AND IF ANY PORTION OF THE PROJECT TOUCHES OR FALLS WITHIN THAT 600 FOOT RADIUS, WE WOULD CALL IT PRESUMPTION THAT YOU'RE NOT INTERESTED, YOU'RE DISQUALIFIED FROM ASSESSING THE WHOLE PROJECT.

>> IN THAT CASE, COULD WE DISCUSS ALL THE OTHER PROJECTS AND THEN I WILL RECUSE MYSELF AND WE'LL LEAVE THE ROOM [OVERLAPPING].

>> EXACTLY. THE ENTIRE PORTION OF THIS EXERCISE IS AFTER WE GET THE LIST OF EVERYBODY'S PROJECTS, WE'RE GOING TO CALL A BRIEF BREAK, AND WE WILL THEN GET TOGETHER STAFF AND TRY TO FIGURE OUT THE MOST EFFICIENT WAY FOR US TO GET THROUGH THESE PROJECTS WHILE WE EXCUSE THE COUNCIL MEMBER WITH THE CONFLICT DURING THAT CONVERSATION.

I'M GOING TO TRY TO MAKE SURE YOU'RE ALL PROTECTED.

>> THANK YOU.

>> THANKS FOR CLARIFYING THAT. IS THAT IT COUNCIL MEMBER [INAUDIBLE].

>> BECAUSE THEY ALREADY LEFT. [LAUGHTER]. I AM NOT GOING TO ADD ANY NEW VARIABLE, SAY ON THE SEVENTH ONE [INAUDIBLE], I HAVE A CONFLICT.

[OVERLAPPING] IT WOULD HELP ME TO UNDERSTAND WHICH ONES OF THESE ARE ON GROWTH MANAGEMENT AND WHICH ONES AREN'T COVERED BY GROWTH MANAGEMENT.

TODAY ANYTHING THAT IS UNDER THE GROWTH MANAGEMENT PROBABLY WOULD HAVE MORE PRIORITY THAN OTHERS.

BUT BEFORE I DO THAT, GET INTO OTHERS, I NEED TO DISQUALIFY MYSELF IN CAIRO STREET DRIVING IN CIRCULATION, THE ALLEGED DIFFERENT WAY VILLAGE OR IN TRAFFIC CIRCLES OF THOSE DRIVERS, THEY HAVE VILLAGE INTELLIGENT PARKING PART OF THE STREET LANE IN PARKING THE TRUCKS.

[NOISE] PROBABLY SHARED THE SAME THOUGHTS AS PETER.

THERE'S SOME OF THIS THAT WE NEED TO HAVE MORE DEPTH CONVERSATION ABOUT WE'LL BE LOOKING AT THE COST OF THESE.

ARE THEY GOING TO BE SHARED? ARE THEY GOING TO ABSORB THE WHOLE COST? WHEN YOU'RE TYPING MESSAGES [INAUDIBLE] A 100 DOLLARS IN RETURN FOR OTHER AGENCIES ALL YOU HAVE TO DO IS GET THE LEGWORK DONE IN ORDER TO GET INTO A PRIORITY STAGE.

I THINK THAT FOR US THAT'S A PRUDENT INVESTMENT,

[03:15:03]

THAT YOU CAN GET A MULTI, SOMETIMES A NUMBER, [INAUDIBLE].

I THINK THAT'S IMPORTANT.

TO ME THESE ARE ALSO LIKE PEOPLE.

I CAN'T TALK ABOUT THE RAILROAD TRACKS WITHIN SOUTH CARLSBAD COASTLINE.

WE'VE BEEN HAVING THAT CONVERSATION FOR THE BETTER PART OF I LOST TRACK PROBABLY 20 YEARS NOW.

WE NEED TO STEP FORWARD.

IT'S ON THE OLD LIST, AT LEAST WE MOVE FORWARD ON IT.

WHATEVER THAT MAY TAKE WE NEED TO JUST WALK AWAY.

STAFF SAID MORE THAN ENOUGH TIME BRINGING US BACK TO THIS AND SO ON.

THOSE ARE MY THOUGHTS.

>> IS THERE MAYOR HALL, ANYTHING THAT'S NOT UP HERE AT THIS POINT THAT YOU WANT TO HAVE THAT DEEPER CONVERSATION ON ABOUT GROWTH MANAGEMENT OR THE REVENUE GENERATION ELEMENTS?

>> NO THERE IS NOT.

>> THANK YOU. I THINK WHAT WE'D LIKE TO DO IS TAKE FIVE, SIX MINUTES PAUSE AS STAFF, WE CAN LOOK AT THE LIST AND ORGANIZE IT.

THANK YOU FOR DOCUMENTING OR ANNOUNCING YOUR CONFLICTS OF INTERESTS.

WE CAN ORGANIZE THIS AND MAKE THAT AS SMOOTH AS POSSIBLE FOR A GOOD CONVERSATION.

LET'S JUST MAKE IT ROUND RIGHT AT ONE O'CLOCK WE'LL BE DONE FOR THAT CONVERSATION.

[NOISE] THANK YOU FOR THAT SHORT RECESS AND WE CAN ORGANIZE THE LIST OF ALL THAT AND MAKE SURE THAT WE MAKE THIS AS EFFICIENT AS POSSIBLE FOR THE CONFLICTS OF INTERESTS.

WE FIRST WANTED TO APPRECIATE AND COUNCIL [INAUDIBLE] APPRECIATES SOME OF THE CONVERSATION YOU OPENED UP IN THE MORE GENERAL PEACE AND THEY LIKE TO HAVE [INAUDIBLE] CLARIFY JUST A COUPLE OF THESE ELEMENTS HERE.

BEFORE WE THEN GO INTO SPECIFIC PROJECT QUESTIONS WHERE I'D LIKE PROJECT MANAGERS AND DEPARTMENT DIRECTORS TO COME UP AND ADDRESS THOSE.

WE NEED FIRST TO PAUSE AND THEN WE'LL TALK ABOUT THE SPECIFIC PROJECTS.

>> THANK YOU, DR. CURLEY.

I DID WANT TO ADDRESS THE QUESTION SPECIFIC TO LIKE PROJECT [INAUDIBLE] FOR EXAMPLE, IS NOT ON THE CONTAINMENT LIST.

AS MENTIONED EARLIER, THERE WERE CRITERIA THAT WE USE SUCH AS THE PROJECTS THAT ARE EITHER UNDER CONSTRUCTION, THAT HAVE REQUIREMENTS SUCH AS REGULATIONS THAT [INAUDIBLE] AND URGENT HEALTH AND SAFETY NEEDS.

THOSE ARE THE ONES THAT WE USE THIS CRITERIA AND THE REVERSE FEET BULL, ALONG WITH OTHER PROJECTS THAT CITY COUNCIL HAS GIVEN DIRECTION ON BEFORE IS STILL DISCRETIONARY THAT THE CITY COUNCIL LETS SAY LET US DELAY OR GIVE US OTHER DIRECTION.

THAT IS THE REASON WHY THE MONROE STREET POOL IS NOT ON THE CONTINUED LIST.

[NOISE] THE NEXT QUESTION WAS WITH REGARDS TO REVENUE GENERATION, FOR EXAMPLE, LIKE A [INAUDIBLE] SOLAR PROJECT, IT IS CURRENTLY IN THE PRELIMINARY STAGES AND THERE IS A LEVEL OF EFFORT THAT IS INVOLVED WITH REGARDS TO STAFF.

THE CITY COUNCIL, THERE'S NOT A PUSH TO PROVIDE THE DIGRESSION ON THAT BEING A PRIORITIZED PROJECT.

THAT WILL GIVE US THE DIRECTION OF THE LEVEL OF EFFORT THAT WILL BE SPENT BY STAFF WHICH WILL TAKE AWAY FROM OTHER COUNCIL PRIORITIES.

THEN THE LAST ITEM WAS A QUESTION ON PRIOR TO SIDE, EXCUSE ME, PRIORITIZING BASED ON THE AMOUNT PAID BY THE CITY, FOR EXAMPLE, [NOISE] IF IT'S REGIONAL OR FEDERALS, STATE FUNDING THAT'S AVAILABLE FOR SOME PROJECTS LIKE A RAILROAD TRENCH, FOR EXAMPLE.

VERY STILL A LEVEL OF EFFORT FROM STAFF WITH REGARDS TO INTERFACING, FINDING THE MONEY AND IT IS ALSO RELATIVELY EARLY IN THIS STAGE.

THOSE WERE THE REASONS WHY A LOT OF THOSE ITEMS, WHAT WE HAVE AT THIS POINT IN TIME IS JUST SOME INFORMATION THAT MAY HAVE BEEN PROVIDED BY OTHERS, WHETHER IT'S [INAUDIBLE], FOR EXAMPLE, FURTHER RETRENCH.

BUT WE HAVE NOT PARSED OUT WHO IS GOING TO GET WHAT FORTUNE [INAUDIBLE].

>> THANK YOU, [INAUDIBLE]. ANY FOLLOW-UP QUESTIONS FOR [INAUDIBLE] BEFORE WE LAUNCH INTO SPECIFIC PROJECTS?

>> I JUST WENT ON SOME OF THESE PROJECTS, ESPECIALLY THE LARGE DOLLAR PROJECTS AND THEY STAY THIS WAY FOREVER.

USUALLY IT'S JUST TRYING TO GET THE MONEY, THE PLANNING PHASE.

JUST TO BE NOTEWORTHY THAT THE PROJECTS, 90 PERCENT IS GOING TO BE PAID BY SOMEONE ELSE, COULD BE THE STATE [INAUDIBLE] WE'VE A COMBINATION.

JUST FOR THE PUBLIC'S KNOWLEDGE THAT IF THERE'S SOME WAY TO KNOW SO THAT WHEN THEY SEE THESE 100 MILLION DOLLARS PROJECTS THAT IT'S GOING TO PAY PENNIES ON THE DOLLAR TO TRY AND GET IT DONE BUT IN DOING THAT YOU ACCELERATE THE PROJECT.

[03:20:03]

>> THANK YOU, SIR. THAT'S A VERY GOOD POINT BECAUSE WE DID NOT SPECIFY THE PARTICULAR FUNDING SOURCES FOR EACH OF THESE AND THERE AREN'T MANY FUNDING SOURCES.

THE LEVEL OF EFFORT IS CITY COUNCIL DIRECTS, FOR EXAMPLE, THE RAIL ROAD [INAUDIBLE] VERY TOP OF THE LIST.

STAFF, PLEASE FOCUS ON THAT EITHER BY DEPRIORITIZING OTHER WORK OR MAYBE ADDING STAFF RESOURCES.

THOSE ARE THE KINDS OF DIRECTION THAT WE'RE HELPING US WITH REGARDS TO PRIORITIZING.

>> JUST SPEAKING OVER WHAT [INAUDIBLE] SAID, THERE'S THE GEARS OF LIKE THE CITY HALL.

WE HAVE COLLECTION ONLY FOR THE CITY HALL.

WE CAN'T TAKE THAT MONEY OUT AND REDIRECT IT TO ANOTHER PROJECT.

THAT WOULD BE IMPORTANT TO [INAUDIBLE]. [NOISE]

>> GREAT. WE CAN ADD THOSE AS FOOTNOTES IN THIS CONVERSATION.

GREAT. COUNCIL [INAUDIBLE], DID YOU HAVE SOMETHING? NO?

>> NO, I HAVE NO QUESTIONS REGARDING THIS ONE.

>> GREAT. [OVERLAPPING] THANK YOU [INAUDIBLE].

HOW WE'RE THINKING WE WILL DO THIS IN ORDER, IS I'LL FIRST GO TO THE COST OF NEW IMPROVEMENTS AND ASK COUNCIL [INAUDIBLE] TO LEAVE THE ROOM FOR THAT CONVERSATION, THEN WE WILL HAVE HER BACK TO THE ROOM AND THEN WE'LL SHIFT TO A CONVERSATION OUTSIDE OF STREET TRAFFIC CIRCULATION STUDY WHERE MAYOR HALL WILL BE ASKED TO LEAVE.

SINCE HE ALSO HAS CONFLICT ON THE RAILROAD TRENCH, WE'LL DO THOSE BACK TO BACK SO WE CAN DO THAT EFFICIENTLY.

THEN WE'LL HAVE MAYOR HALL COME BACK INTO THE ROOM AND THEN WE'LL SHIFT TO THE IN QUESTIONS ABOUT MONROE STREET POOL AND THEN START GOING DOWN THE LIST AS FAR AS WE CAN GET TODAY.

I WOULD ASK JUST THE COUNCIL MEMBERS AS YOU ARE HAVING CONVERSATIONS, WE'RE OBVIOUSLY, WELL, AS OPTIMISTIC AS I AM.

I FEEL IT PROBABLY WILL NOT GET THROUGH ALL THE QUESTIONS, OF THESE PROJECTS TODAY.

IF THERE ARE OVERARCHING QUESTIONS THAT YOU HAVE, LIKE STAFF, TO TAKE A LOOK AT SOME OF THESE THINGS THAT CAME RELATED TO GROWTH MANAGEMENT AND THEY ARE SHARED.

THOSE MIGHT BE THINGS WE CAN IDENTIFY BEFORE THE END OF THE MEETING TODAY SO WE ACTUALLY WILL BENEFIT NOW WITH A LITTLE BIT MORE TIME.

IF YOU HAVE QUESTIONS FOR STAFF TO DO BEFORE NEXT WEEK.

>> ONE OTHER FOLLOW-UP.

SOME OF THE THINGS THAT I THINK WE'RE DISCUSSING HERE.

THERE'S THE OPPORTUNITY TO BE PAID FOR BY DEVELOPER.

I THINK THOSE SHOULD BE SOME WHAT DELINIATED ALSO BUT WE TAKE THE LEAD ON WHETHER SOME OF THIS COULD BE COVERED BY DEVELOPMENT PROJECT VERSUS US.

I THINK WE CAN HAVE THAT CONVERSATION WHEN WE GET TO IT.

>> I WILL PUT THAT UP HERE.

THEN THE OTHER PIECES AROUND GROWTH MANAGEMENT.

COUNCIL MEMBER [INAUDIBLE], IF YOU CAN PLEASE.

[OVERLAPPING]

>> [INAUDIBLE] FOR THE MEMBERS OF THE AUDIENCE.

THE REASON WE WERE TALKING ABOUT EXCUSING COUNCIL MEMBERS IS UNDER THE BLUE [INAUDIBLE] FORMAT [INAUDIBLE] COUNCIL MEMBERS ARE DISQUALIFIED [INAUDIBLE] WERE PREVENTED FROM MAKING DECISIONS OR EVEN INFLUENCING DECISIONS IN WHICH THEY HAVE AN ECONOMIC OR FINANCIAL INTERESTS.

IN ORDER TO ACCOMMODATE THAT LOG IT'S WHY WE'RE EXCUSING COUNCIL MEMBERS WHO MAY LIVE NEAR A PROJECT IN WHICH THEY MIGHT HAVE A BENEFIT.

THAT MEANS THEIR [INAUDIBLE] THEIR INTERESTS CAN GO UP OR DOWN EITHER WAY.

THAT'S WHY WE ARE LEADING THIS PROCESS.

I JUST WANTED TO MINISTER TO THE PUBLIC. THANK YOU.

>> THANK YOU.

>> WE'LL SEE YOU IN A FEW.

>> AS SHE EXCUSES HERSELF WHOEVER HAD THE QUESTION ABOUT THIS, [INAUDIBLE] YES.

WE'LL GET READY FOR THAT, AND THEN WE'LL CALL UP A PROJECT MANAGER, DEPARTMENT DIRECTOR TO ADDRESS YOUR QUESTIONS APPROPRIATELY.

GO AHEAD.

>> GREAT. THANK YOU. FOR [INAUDIBLE] THEY'RE PRETTY [NOISE] GOOD QUESTIONS HOPEFULLY.

BUT WITH REGARDS TO SPECIFICALLY LA COSTA AVENUE, I JUST WANTED TO HEAR WHAT TYPES OF IMPROVEMENTS WE'RE LOOKING AT AND THEN WHAT THE TIMELINE IS FOR THOSE, AND THEN OF COURSE THE COSTS AROUND THAT.

I KNOW THAT'S IN HERE, BUT JUST FOR THE PUBLIC'S PLEASURE.

>> SURE. I WOULD LIKE TO INVITE TOM FRANK WHO IS OUR TRANSPORTATION DIRECTOR AND CITY ENGINEER TO COME UP AND DESCRIBE THE LA COSTA AVENUE PROJECT.

>> GOOD AFTERNOON. CAN YOU HEAR ME? MY NAME IS TOM FRANK, I'M THE TRANSPORTATION DIRECTOR AND CITY ENGINEER.

REGARDING THE SCOPE OF THE PROPOSED IMPROVEMENTS, AS YOU KNOW THE SEGMENT ON LA COSTA AVENUE BETWEEN [INAUDIBLE] AND SANTA FE, WE COMPLETED ROAD GUIDES SEVERAL YEARS AGO.

THERE IS REMAINING BUDGET TO STUDY AND IMPLEMENT

[03:25:03]

FURTHER COMPLETE STREETS IMPROVEMENTS ALONG THAT SEGMENT SO THE NEXT PHASE WOULD BE TO STUDY FURTHER IMPROVEMENTS THROUGH THAT COURT ORDER.

[BACKGROUND]

>> IS THAT SOMETHING THAT'S ALREADY BEEN BUDGETED FOR OR WOULD THAT BE INCORPORATED IN THE NEXT BUDGET CYCLE?

>> WE DIDN'T HAVE A BUDGET AVAILABLE AND WE WOULD THEN DEVELOP COST ESTIMATES FOR FUTURE FUNDING.

>> OKAY, GREAT.

IT SOUNDS LIKE, JUST BRIEFLY AND WE CAN GET INTO THAT LATER TOO I JUST WANT TO MAKE A NOTE THAT HERE IT SAYS ITS OVERALL IMPROVEMENTS BUT I KNOW WE'RE ALSO TALKING ABOUT COMPLETE STREETS FOR OTHER ASPECTS, FOR INSTANCE, I THINK IT WAS TYLER STREET AND MAGNOLIA IF I'M NOT MISTAKEN THAT HAD COMPLETE STREETS ON THERE AS WELL.

I'D LOVE ESPECIALLY SINCE I KNOW WE'RE TALKING ABOUT WANTING TO HAVE COMPLETE STREETS ACROSS THE CITY, IF WE COULD MAYBE DESIGNATE SOME OF THOSE PARTICULAR PROJECTS SO THAT WE KNOW WHICH ONES THOSE ARE AND THAT WE WILL BE DOING COMPLETE STREETS I THINK ESPECIALLY FOR THE DISTRICTS ACROSS THE CITY.

IT WOULD BE HELPFUL FOR US TO KNOW, ESPECIALLY AS WE GO TOWARDS EITHER THE SUSTAINABLE MOBILITY PLAN, JUST TO HAVE THAT HOLISTIC VIEWPOINT. THANK YOU.

>> THANK YOU. I THINK YOU ASKED ABOUT THE TIMELINE?

>> OH YES. THANK YOU.

>> YES. SINCE WE'RE STUDYING IT, WE PUT A TIMELINE IN FOR 2027, BUT THAT IS ESTIMATED OR ITS TARGETED SCHEDULE ON THREE CONSTRUCTIONS SO YES, IT SHOULD TAKE ABOUT A YEAR.

>> [BACKGROUND] THANK YOU. I THINK WE CAN ASK ALL THE QUESTIONS ABOUT LA COSTA AVENUE PERMITS.

MAYOR HALL, YOU ARE EXCUSED.

WE WILL THEN SHIFT INTO THE ENTIRE TYLER STREET TRAFFIC SIMULATION STUDY FIRST AND THE RAILROAD TRENCH NEXT.

>> GOOD AFTERNOON AGAIN. I'M TOM FRANK.

>> IF YOU COULD JUST WAIT ONE MOMENT UNTIL COUNCIL MEMBER AGUSTA RETURNS, THAT WOULD BE GREAT.

WELCOME BACK. PROBABLY TOOK LONGER LAW-FARE BACK.

[LAUGHTER] ALL RIGHT.

WE ARE NOW ONTO TYLER STREET TRAFFIC SIMULATION STUDY AND SO SPECIFICALLY NEVER HAD THE QUESTION ON THAN ONE.

>> THAT WAS ME AGAIN. SIMILAR QUESTIONS, JUST WANTING TO KNOW WHERE WE'RE AT IN TERMS OF THIS PENDING TIMELINE AND BUDGET.

>> THANK YOU, COUNCIL MEMBER.

TOM FRANK, THE TRANSPORTATION DIRECTOR, AND CITY ENGINEER.

THIS PROJECT IS INCLUDED IN THE VILLAGE AND BARRIO MASTER PLAN.

ON THIS PARTICULAR STREET, THERE WERE SEVERAL ALTERNATIVES THAT WERE LISTED FOR BASICALLY TRAFFIC [INAUDIBLE] AGAIN AND STREETS TYPE OF IMPROVEMENTS.

ACTUALLY, WE HAVE BUDGETED AT $70,000 IN THIS UPCOMING FISCAL YEAR TO STUDY THE ISSUE.

THERE'S DIFFERENT ALTERNATIVES WHICH ARE LISTED, WHICH INCLUDED A [INAUDIBLE], AND ONE-DIRECTIONAL ALTERNATIVE AS WELL AS A TWO-DIRECTIONAL ALTERNATIVE.

WE WANT TO MAKE SURE THAT WE ENCOMPASS THE ENTIRE COMMUNITY BECAUSE ANY CHANGES YOU HAVE ON ONE STREET HAVE RESULTING INFLUENCES ON THE ADJACENT STREETS.

SO WE SHOULD BE ABLE TO COMPLETE THAT STUDY WITHIN THE FIRST YEAR.

>> THANK YOU. JUST BRIEFLY, AS A FOLLOW-UP, WOULD ANY OF THE FEDERAL FUNDS THAT WE'VE RECEIVED, FRANKLY, I KNOW CONGRESS SECURES THE FEDERAL FUNDS FOR THIS PARTICULAR AREA.

WOULD ANY OF THOSE FUNDS BE UTILIZED FOR THIS PARTICULAR STUDY?

>> NOT FOR THIS STUDY, BUT WE WERE ALWAYS LOOKING FOR GRANT FUND OPPORTUNITIES.

>> OKAY, GREAT. THANK YOU.

>> ANY OTHER QUESTIONS ON TYLER STREET TRAFFIC SIMULATION STUDY? YES.

>> I HAVE A QUESTION. MY AREA OF INTEREST WAS THERE ARE A LOT OF BAR CHARTS THAT GO DOWN THAT STREET [INAUDIBLE] SO I JUST WANTED YOU TO TAKE A LOOK AT WHAT IS THE LARGEST VEHICLE THAT SERVES THAT AREA AND ENSURE WE CAN GET IT OUT.

I'M PRETTY CONFIDENT [INAUDIBLE].

>> THANK YOU. YOU'RE GOING TO HIT ON. THANK YOU.

SO RAILROAD TRENCH IS OUR THIRD PROJECT.

WE HAD A COUPLE OF DIFFERENT QUESTIONS THERE,

[03:30:01]

ANYONE WOULD LIKE TO START? COUNCIL MEMBER AGUSTA.

>> SURE. THIS GOES BACK TO THE CONVERSATION THAT WE HAD HAD BEFORE ABOUT OTHER FUNDING AND GETTING FUNDING FROM SANDAGE OR OTHER AGENCIES, FEDERAL STATE.

I JUST WANTED TO KNOW A LITTLE BIT MORE ABOUT WHAT WAS ALREADY PAID FOR AND WHAT WAS ALREADY SET ASIDE FOR THIS AND THE LIKELIHOOD OF GETTING FUNDED.

>> I WILL START IT OFF. THERE WAS FUNDING THAT HAD BEEN SET ASIDE BY THE STATE COUNCIL A FEW YEARS AGO AND WE FUNDED AN ALTERNATIVES ANALYSIS BETWEEN A SHORT TRENCH AND A LONG TRENCH.

SANDAGE HAD PROCEEDED WITH THE CONSULTANT AND THE RESULTS OF THAT STUDY WAS PRESENTED TO CITY COUNCIL IN JULY OF 2020 AND THE RECOMMENDATION WAS TO GO WITH THE LONG TRENCH.

THAT LONG TRENCH ALTERNATIVE WAS INCORPORATED AS PART OF SANDAGE'S 2020 REGIONAL PLAN, ESTIMATE SEVERAL HUNDRED MILLION DOLLARS IN THERE FOR PART OF THE MOST SOUND COURT ORDER TO BE COMPLETED BY 2035.

WE HAVE BEEN IN TOUCH WITH SANDAGE AND ALSO LOOKING AT ANOTHER OPPORTUNITIES FOR THE FIRST AVAILABLE FUNDING, WHETHER IT IS THROUGH THE BI-PARTISAN IN CONSTRUCTION LAW OR OTHER OPPORTUNITIES TO SEE IF THAT CAN BE INCORPORATED BECAUSE AS THE MAYOR HAD PREVIOUSLY MENTIONED AS WELL, THAT IS NOT GOING TO BE SOMETHING THAT WILL BE FUNDED BY THE CITIZENS ACROSS [INAUDIBLE] AND GENERAL FUND.

WE ARE WORKING IN CONCERT WITH OTHERS TO IDENTIFY THOSE TYPES OF AVAILABLE FUNDING.

>> THANK YOU. IT PROBABLY SEEMS LIKE STAFF HAS TALKED ABOUT THIS A LOT, BUT I THINK THAT THERE'S STILL A LOT OF CONFUSION IN THE COMMUNITY FROM THE COMMENTS THAT I HEAR UP UNTIL TODAY WITH PEOPLE SAYING, WHY IS IT STILL THERE? WHY IS THE CITY GOING TO PAY FOR THIS? BECAUSE THIS IS NOT PAID FOR, AS YOU KNOW WE'RE LOOKING FOR SOME IT AND I THINK WITH A LOT OF THE BIGGER PROJECTS, WE DO, AS WE HAVE SAID, PAY FOR PLANNING FEASIBILITY UPFRONT.

IN MY ROLE IN THE LEGISLATIVE SUBCOMMITTEE, I KNOW THAT WE TALK ABOUT THIS A LOT THERE TOO, JUST TRYING TO GET READY SO THAT WE HAVE PROJECTS THAT ARE AVAILABLE TO BE FUNDED AND COST-SHARED WITH OTHER LOANS FROM GOVERNMENT AND OTHER AGENCIES.

I THINK THAT THAT'S REALLY IMPORTANT FOR THIS ONE.

THAT WAS THE ONLY QUESTION, I DIDN'T PUT THIS ONE.

I DIDN'T HAVE THAT QUESTION.

>> I JUST WANTED TO ADD IN THEN THE NEXT STEPS WE'LL BE REALLY LOOKING AT ENVIRONMENTAL SIDE OF THE HOUSE IN THE PRELIMINARY FINDINGS. THANK YOU.

>> CHANCELLOR, TO YOUR POINT AS FAR AS THERE MIGHT BE SOME MISINFORMATION, I KNOW THAT, I'LL CONFIRM WITH JASON, BUT THERE WAS AN ECONOMIC IMPACT STUDY THAT WAS PERFORMED BY SANDAGE THAT ALSO TOUCHED ON THE VALUE IT HAS IN THE EVENT THAT THIS OCCURRED, BUT THEN ALSO THE PUBLIC SAFETY BENEFITS AS WELL.

THAT STUDY I BELIEVE IS ACTUALLY ON THE CITY'S WEBSITE, BUT I'M GOING TO DEFER TO JASON ON THAT. JASON.

>> THAT'S GREAT. I CAN'T REMEMBER THE YEAR EXACTLY, MAYBE 2017, THAT WE COMPLETED TECHNICAL FEASIBILITY AND ECONOMIC ANALYSIS OF THE PROJECT, AND BASICALLY EVALUATED TRENCHING AS A PROJECT ALTERNATIVE AGAINST AN AGGREGATE PROJECT AND THE VARIOUS IMPACTS AND BENEFITS TO THE COMMUNITY.

THAT AGAIN WAS IN PARTNERSHIP WITH SANDAGE, FUNDED BY THE CITY, CONDUCTED BY SANDAGE CONSULTANTS.

>> THANK YOU. I THINK COUNCIL MEMBER. [OVERLAPPING]

>> EXCUSE ME, I HAVE SOME COMMENTS ON THAT.

>> YES. PLEASE.

>> THANK YOU. I THINK THE CONCERN HERE IS THAT, OFTEN THE CITIZEN SURVEYS ARE REFERRED TO WITH A TRENCH LOGIC RATES, VERY LOW OR LOWEST AND I COULD COMPLETELY UNDERSTAND THAT IF I GET A SURVEY THAT SAYS THIS IS GOING TO COST 400-600 MILLION.

[INAUDIBLE]. THE COUPLE OF POINTS I'D LIKE TO MAKE ON THIS IS THAT [INAUDIBLE] THAT WAS THE STATE VOTING ON WATERWAYS PROJECT TO BUILD A RETENTION WALL TO KEEP [INAUDIBLE] FROM FALLING ACROSS THE BOULEVARD FROM FALLING INTO THE PACIFIC OCEAN.

THAT PROJECT WAS ABOUT $5 MILLION, AND THEN WHAT THE CITY DID THROUGH REDEVELOPMENT, THE CITY SAID IF WE SPENT AN EXTRA MILLION WE KNOW WE ARE SPENDING FIVE, BUT IF WE SPEND AN EXTRA MILLION, WE COULD MAKE MAKE THIS INSTEAD OF A STRAIGHT BLOCK RETENTION PROJECT, WE CAN PUSH THE TUNNEL OFF 12 FEET TO MAKE A WALKWAY DOWN THERE.

WE COULD MAKE A CERTAIN TEAM.

WE CAN MAKE STAIRS TO OPTION OUT THE WALKWAY TO CREATE THIS FACILITY THAT WE FAR MORE THAN JUST A RETENTION FOR THE ROAD AND THAT'S HOW THE SEQUEL AND THE UPPER WALL [NOISE] GOT CONSTRUCTED.

[03:35:02]

IT WAS AT CARLSBAD AUGMENTED, A PROJECT THAT WAS ALREADY GOING TO GO ON AT THE STATE LEVEL AND WE GOT A PROJECT THAT'S PROBABLY, I DON'T EVEN KNOW IF THAT IS A JUST A STRAIGHT RETENTION WALL WOULD BE OF BENEFIT TO THE CITIZENS, BECAUSE I CAN IMAGINE HOW MUCH BENEFITS CITIZENS COULD GET FROM THAT FACILITY THAT WE CURRENTLY HAVE THERE WHERE SEVERAL THOUSANDS PEOPLE [INAUDIBLE] THEIR LIVES.

I LOOK AT THIS THE SAME WAY, THE TWO RECENT RAIL PROJECTS.

ONE WAS THE [INAUDIBLE] CITY EXTENSION OF THE TROLLEY.

THAT'S A $2 BILLION PROJECT AND ONE BILLION WAS A FEDERAL GRANT AND ONE BILLION WAS A FEDERAL LOAN THAT WE PAID THROUGH AND PAID OFF THE PERCENTAGE.

THE CITY OF SAINT GABRIEL DIDN'T PAY ANYTHING FOR THAT.

THE OTHER ONE WOULD BE THE EXTENSION OF THE [INAUDIBLE] SEVERAL YEARS AGO TO THE SAN DIEGO AND [INAUDIBLE] THAT WAS ALSO A $2 BILLION PLUS PROJECT IN WHICH THE CITY PAID VERY LITTLE IF ANYTHING.

SO THE DECISION ABOUT DOUBLE TRACKING IN A TRENCH IS NOT A DECISION THAT THIS COUNCIL HAS TO MAKE, IT'S HAPPENING.

THAT'S GOING TO HAPPEN.

IT'S PART OF OUR REGIONAL TRANSPORTATION PLAN.

THE DATE IS UNCERTAIN WHEN THAT HAPPENS BUT THAT IS THE DIRECTION THAT IT WILL HAPPEN.

I THINK WHAT OUR CITY AND WHAT OUR COUNCIL HAS TO DO IS TO SAY MUCH LIKE THE SEAWALL PROJECT.

LISTEN, IT'S GOING IN BUT CAN WE SPEND A LITTLE BIT MORE TO MAKE THIS JUST A GREAT POCKET OF THE CITY TO SAVE LIVES, TO CREATE EXTRA INCOME.

A LOT OF IT FOR OUR CITY FOR THE FUTURE AND THEN MAYBE TO CREATE A [INAUDIBLE] OR A SPACE THAT DOESN'T EXIST BEFORE OR ON TOP OF THE TRACKS.

BUT WHEN WE FRAME IT TO OUR CITIZENS, DO YOU WANT THIS PROJECT OR NOT? WE'RE DOING AN INJUSTICE TWO WAYS.

ONE, OUR CITIZENS DON'T GET TO DECIDE ABOUT THIS PROJECT.

IT'S NOT A CITY PROJECT AND TWO, WE'RE TELLING OUR CITIZENS IT'S GOING TO BE FORCED 600 MILLION AND OUR CITIZENS EQUATE THAT TO SPENDING OUR TAX OFFERS AND THAT'S NOT TRUE HERE.

BUT IF [INAUDIBLE] BRACE THE OPPORTUNITY THAT WE HAVE [NOISE] OTHERWISE LONGTIME I DON'T KNOW WHAT HAPPENS IN FIVE YEARS, 10 YEARS, OR 20 YEARS.

BUT WE SHOULD DO EVERYTHING THAT WE CAN TO PROFIT STUDY PERSPECTIVE OR PARTNERSHIP PROSPECTIVE TO MAKE SURE WE PROFIT [INAUDIBLE] TO THE GREATEST EXTENT POSSIBLE.

THANK YOU. [NOISE] I JUST WANTED TO EXPAND A LITTLE BIT TO YOUR POINT ABOUT THE CITY CONTRIBUTING TO A CERTAIN AMOUNT.

AS MR. GABBERT, MENTIONED WE DID FUND [INAUDIBLE] ANALYSIS AND WE ALSO FUNDED THE ALTERNATIVES ANALYSIS AS A CITY.

[INAUDIBLE] IS KEY TO THOSE STUDIES ON OUR BEHALF.

THERE IS A LEVEL OF EFFORT THAT IS INVOLVED WITH THE NURSING STAFF AS FAR AS THIS IS A PRIORITY FOR US TO MOVE FORWARD BECAUSE IN THE RECENT DISCUSSIONS WITH [INAUDIBLE], THEY HAVE HAVE A MULTITUDE OF PROJECTS THAT THEY'RE WORKING ON ACROSS THE BOARD, INCLUDING THE ONES THAT THEN YOU HAD MENTIONED.

THEY HAVE PRIORITIZED QUALITY AND THE FOLLOWING SAN DIEGO STATE TAKES ALONG THOSE LINES.

THEY HAVE MANY PROJECTS THAT ARE PERHAPS RIGHT NOW A HIGHER PRIORITY, WHETHER IT'S A DEL MAR BLUFFS, OR OTHER PROJECTS THAT ARE EQUALLY, IF NOT MORE SO EXPENSIVE.

AND SO THEN THE QUESTION IS REALLY THE INTERACTION OF THE LEVEL OF EFFORT OF OUR STAFF FROM CITY STAFF PERSPECTIVE OF DELIVERING, THIS PROJECT DIMENSIONALLY.

THANK YOU FOR THAT. AWESOME. IF WE HAVE ANY OTHER QUESTIONS ABOUT RAILROAD TRENCH [INAUDIBLE] CLARIFY ANYTHING ELSE SAID.

WE CAN ASK [INAUDIBLE] BACK IN AND WE'LL MOVE TO MONROE STREET FULL YEAR MINUTE.

AT THIS POINT WHAT WE ARE REALLY LOOKING FOR IS, QUESTIONS FOR CLARIFICATION ON ANY OF THESE PROJECTS.

THE NEXT ROUND OF WHAT WE'LL BE DOING IS MORE OF THAT MAKING MOTIONS TO EITHER ACCELERATE DECELERATE A PROJECT OR ADDED OR REMOVED PROJECTS.

AT LEAST PARTNERS MAKE SURE YOU HAVE ALL THE INFORMATION YOU NEED ABOUT THE STATUS [NOISE] OF THE PROJECT.

[INAUDIBLE] FOR THAT.

WELCOME BACK MAYOR.

WE'RE NOW ON THE MONROE STREET POOL.

I WAS JUST REMINDING THE COUNCIL THAT WE'RE LOOKING FOR QUESTIONS SPECIFIC TO THESE.

YOU CAN GET ADDRESSED AND THEN OUR NEXT PHASE OF THIS WOULD BE TO LOOK INTO MOTIONS OR COMMENTS ABOUT WHAT YOU'D LIKE TO SEE CHANGED.

ON THE MONROE STREET POOL, SPECIFIC QUESTIONS FOR STAFF ON THAT OR ANY ADDITIONAL QUESTIONS, I THINK [INAUDIBLE] ACTUALLY ADDRESSED ONE OF THEM.

PLEASE. [NOISE] THERE'S SOME CONCERN ABOUT THE COUNCIL VOTING TO TAKE THE REST OF THIS SUMMER'S GALA AND PUT IT UNDER THE AGENDA OF GALA.

DOES THAT REALISTICALLY, SLOW ANYTHING DOWN ON THE PART OF THE FINAL PRODUCT.

LOOKING AT THIS, IT SHOWS NOW GOING FROM MEMORY, I THINK SECTION 126,

[03:40:02]

WHY DOES IT TAKES IT SO LONG TO GET THAT DONE? I THINK THE MONROE STREET POOL HAD A NO BRAINER THAT THAT'S GOING TO MAKE IT ON THE TOP OF THE PRIORITY LIST.

WHY SO LONG NOW? I WOULD ACTUALLY LIKE TO INVITE MR. LANCASTER, COME UP AND TALK ABOUT THE PROJECT.

[NOISE].

[INAUDIBLE] COUNSEL, [INAUDIBLE] DIRECTOR.

TO YOUR FIRST QUESTION, WE'D BE DELAYING THE PROJECT BY APPROXIMATELY FIVE MONTHS FROM THE DATE OF THE ORIGINAL BALLOT MEASURE THAT WAS PROPOSED, THAT BEING JUNE THIS YEAR VERSUS NOVEMBER REGARDED A BOUNCE IN THE SCHEDULE.

RIGHT NOW WE ONLY HAVE CONSUMPTION CLAIMS. THERE'S NOTHING REALLY IN DETAIL SO WE'LL EITHER TALK IT OUT [NOISE] WITH THE CONSULTING FIRM TO DEVELOP THOROUGH PLANS AND SPECIFICATIONS NOT ONLY FOR THE BUILDING IMPROVEMENT BUT ALSO THE EXPANSION OF THE POOL.

WITH THAT, OTHER EQUIPMENT COMPONENTS.

WE'RE GOING TO NEED [INAUDIBLE] A BUILDING IN FIRE NEW MECHANICAL ROOM.

ALL NEW EQUIPMENT FOR THAT POOL.

SO THAT WILL BE VERY EXHAUSTIVE APPROACH.

WE WILL TAKE CONSIDERABLE TIME AND THEN WE WILL HAVE TO GO BACK TO A COUPLE OF BIG PROCESS, WHEN WE COME TO APPROVAL OF THOSE PLANS IN PLACE, THE ACTUAL BID ITSELF WHICH TAKES THREE TO FOUR MONTHS ALONE AND THEN COME BACK TO AWARD A CONTRACT.

THE CONSTRUCTION PERIOD IS SLIGHTLY TO BE OVER A YEAR ITSELF, AND SO THAT AGAIN, COUPLED TOGETHER WILL GIVE YOU THAT 2025, 26TH DATE.

THANK YOU [INAUDIBLE]. TO ME IT'S JUST A RESIDENT AND I LOOKED AT THAT AND I THINK WHY SO MANY YEARS OUT.

BUT THANK YOU FOR THE EXPLANATION. I APPRECIATE IT SIR.

OTHER QUESTIONS ABOUT THE MONROE STREET POOL? YES COUNSELOR [INAUDIBLE]. THANK YOU.

[OVERLAPPING] COUNCIL [INAUDIBLE] DO YOU HAVE A QUESTION ABOUT THE MONROE STREET POOL? I GUESS MY QUESTION WOULD BE, I NEED TO OPEN UP THE DECISION THAT COUNSEL HAD ALREADY MADE WHICH WAS PROBABLY A THIRD OPTION, WHICH WAS THE MORE EXPENSIVE OPTION BUT I DO KNOW THAT THIRD OPTION REALLY EXTENDED THE POOL IN TERMS OF SIZE, AND THAT ITS TRIP WIRE THAT OUR STAFF HAS TOLD US THAT IT'S REQUIRED TO GO TO VOTE BY PEOPLE BECAUSE IT'S GOING TO COST MORE THAN $1 BILLON.

I GUESS MY QUESTION WOULD BE AS STAFF WOULD WE, IF WE GET A NEW POOL THAT'S EXACTLY THE SAME SIZE, NOT THESE EXPANDED POOL, WILL THAT REQUIRE THE SAME VOTE BECAUSE THEN WE'RE JUST MAINTAINING AN EXISTING FACILITY IS AN OLD POOL, THAT IS 40 OR 50 YEARS OLD AND WE'RE STILL IN THE SAME THING THAT'S THERE.

IS THERE DIFFERENCE IN HOW DO WE OFFER BOTH IF WE DO OPTION 3 AND POUR OPTIONS 2 OR WE TREAT IT THE SAME? UNDER OUR PROPOSITION TO EACH GUIDELINES, MAINTENANCE AND REPAIR ARE NOT SUBJECT TO A VOTE EVEN IF THEY'RE ARE OVER $1 MILLION.

THEY'RE EXEMPTED FROM PROPOSITIONING REQUIREMENTS.

IT'S THE EXPANSION OF THE POOL FACILITY THAT WOULD REQUIRE THE [INAUDIBLE].

TO SPEAK FURTHER TO THAT RESPONSE OPTION 1, IT WAS RECENTLY PRESENTED TO COUNCIL, IT WOULD FALL WITHIN THAT MAINTENANCE AND REPAIR CATEGORY.

OPTIONS 2 OR 3 FELL INTO PROPOSITION EACH BILL AND THE COUNCIL PREVIOUSLY DIRECTED THROUGH OPTION 3.

I DECIDED TO WANT A BRIEFING THEN WHY OPTION 2 WOULD TRIGGER A PROPERTY.

IF WE'RE SIMPLY BUILDING THE EXACT SAME THING THAT'S THERE NOW OR NEW.

I REALIZE IT'S NOT JUST TAKING CARE OF THE WHOLE FACILITY, BUT IT'S THE SAME FACILITY.

IT DOESN'T GROW, IT'S STILL COOL.

WE'RE JUST MAINTAINING WHAT'S THERE, AND SO I'D A WANT A LITTLE BIT MORE CLARIFICATION ON THAT IN THE FUTURE.

YES SIR, WE'RE GOING TO ARRANGE FOR THAT BRIEFING.

GREAT, THANK YOU COUNSELOR [INAUDIBLE].

ANY OTHER QUESTIONS ABOUT MONROE STREET POOL ITEM PROJECT? YES COUNSELOR [INAUDIBLE].

THANK YOU. JUST TO CLARIFY, IS THIS GOING TO BE ON THE AGENDA TO COME BACK JUST TO APPROVE GETTING THIS ON THE NOVEMBER BALLOT? YES. SO THE DIRECTION FROM COUNCIL WITH WHAT WE HAD REQUESTED IS THAT WE COULD COME BACK AFTER WE'VE HAD THIS CMV PRIVATIZATION, ONCE WE'VE HAD THE CMV PRIVATIZATION, WE ARE CURRENTLY PROJECTED THE TIME-FRAME ON JUNE AGENDA BRINGING THIS FORWARD.

IT GIVES US PLENTY OF OPPORTUNITY TO PLACE IT.

THE DEADLINE I BELIEVE IS MID AUGUST TO PLACE IT ON THE BALLOT.

THANK YOU.

[03:45:01]

GREAT CLARIFICATION.

ANYTHING ELSE ON MONROE STREET POOL.

LET'S GO TO THE SCHULMAN AUDITORIUM.

THE QUESTION THAT WAS THERE, THERE IS [INAUDIBLE].

THANK YOU. JUST WANTED TO AGAIN, SIMILAR QUESTIONS, JUST WANTING TO GET SOME UPDATES ON WHERE WE'RE AT TIMELINE, AND THEN OF COURSE THE BUDGETTING AROUND IT.

I WOULD LIKE TO INVITE MR. [INAUDIBLE].

>> THANK YOU. GOOD AFTERNOON, COUNCIL [INAUDIBLE] AS YOU CAN SEE ON THE LIST IS INDICATED NOT STARTED YET.

THERE WAS SOME MONEY [INAUDIBLE] CAPITAL IMPROVEMENT PROGRAM LAST BUDGET CYCLE THAT WAS TO FUND SOME INITIAL STUDIES [INAUDIBLE].

WE'VE RECEIVED CONSULTANT PROPOSALS [INAUDIBLE] DIRECTLY, WE SHOULD MOVE THAT FORWARD.

>> THANK YOU. ANY OTHER QUESTIONS ON SCHULMAN AUDITORIUM? YES, COUNCIL MEMBER [INAUDIBLE].

>> JUST TO CLARIFY, I KNOW WE'VE BEEN CALLING IT SCHULMAN AUDITORIUM BUT IT ALSO INCLUDES THE CANON ART GALLERY, RIGHT?

>> CORRECT.

>> OKAY. GREAT, THANK YOU.

>> I WILL FIX THAT ON OUR LIST, IT WAS SHORTHAND.

LET'S GO TO ORION CENTER AND ORION COMPLEX ENERGY STORAGE, A QUESTION AROUND THAT.

COUNCIL PENELOPE. [OVERLAPPING].

>> [INAUDIBLE] IT WAS JUST WE WERE BOTH TALKING ABOUT OTHER ASPECTS, THE EARNING.

JUST QUICKLY WE HAD SOME QUESTION OR HAVING A QUESTION AROUND.

AGAIN, WHERE WE'RE AT WITH THE RIGOROUS ESPECIALLY I WOULD SAY MORE ON NUMBER THREE ANYMORE THAN THE ORION COMPLEX ENERGY STORAGE.

WHAT THAT PROJECT ENTAILS, AGAIN, WHERE WE'RE AT WITH THIS PARTICULAR BUDGET CYCLE.

>> I ASKED YOU THAT QUESTION.

BACK IN 2018, IT WAS A MICROBIAL FEASIBILTY STUDY THAT REVIEWED THE ENTIRE ORION CENTERS 18TH CENTURY COMPLEX AND AT THAT TIME, THE ESTIMATE FOR THE RESILIENCY, INCLUDING ENERGY STORAGE WAS ABOUT $6.7 MILLION.

THAT PROJECT WAS SOMETHING PRIORITIZE HAS NOT STARTED AND CITY COUNCIL WISHES TO PRIORITIZE THAT.

>> YES. COUNCIL MEMBER [INAUDIBLE].

>> THANK YOU. THIS BRINGS UP AN ISSUE THAT I HADN'T THOUGHT TO VERY CLEARLY BEFORE, BUT SOME OF THESE PROJECTS WERE PUT ONTO THE LIST A LONG TIME AGO.

THERE HAVE BEEN CHANGES EXTERNALLY AND BROADER ENVIRONMENT, BUT ALSO JUST THE MOST HOSPITAL IN OUR COMMUNITY AND WITH THE COUNCIL, AND I WOULD LOVE TO LEARN MORE ABOUT THIS, AND BEFORE I MAKE A DECISION ABOUT PRIORITIZATION IN OUR NEXT MEETINGS, SO TOGETHER WE'RE GOING TO DO.

I'D LOVE TO LEARN MORE ABOUT THIS PROJECT IN PARTICULAR, I DON'T KNOW A LOT ABOUT IT AND I'M GUESSING THERE'S A COUPLE OF OTHER SEGMENT PULLED OUT AS WELL.

>> YES, MA'AM. MY UNDERSTANDING WAS IT WAS PRESENTED TO CITY COUNCIL BACK IN 2018.

WE WILL GIVE YOU THAT INFORMATION [INAUDIBLE]. THANK YOU.

>> THANK YOU. COUNCIL OF MINORITY.

>> YEAH, THANK YOU. MY COLLEAGUE WANTED MORE INFORMATION ON THAT, AND I'D LIKE TO HEAR FROM OUR FOLKS ABOUT HOW NECESSARY THIS IS IN THEIR EYES.

THEY WANTED AND I'LL JUST SAY THE COMMENT AS WE PUT OFF THINGS.

TYPICALLY A BIT MORE SENSITIVE CONSTRUCTION COSTS TO KEEP GOING UP [INAUDIBLE].

BUT THIS IS WHY IF WE PUT OF A DELAY OR FEATHER IT'S ACTUALLY LESS EXPENSIVE BECAUSE AVERAGE COST AND ENERGY STORAGE COSTS ARE DROPPING DRAMATICALLY THE LAST SEVERAL YEARS AND ARE EXPECTED TO CONTINUE TO DROP.

>> THANK YOU COUNCIL [INAUDIBLE] YES, MAYOR.

>> THIS CONVERSATION GOES OBVIOUSLY YOU START THINKING MORE QUESTIONS AND ENERGY IS COMING OUT TOWARDS THE WEST TODAY IN A BUNCH OF DIFFERENT WAYS.

WHAT I PREFER TO DO IS FLIP THE LARGE QUESTION AND THEN FALL TO THE PIECES UNDERNEATH IT.

RIGHT NOW I THINK WE'VE STARTED TO LOOK AT PIECES VERSUS HOW DO WE WANT TO ADDRESS OUR ENERGY GOING INTO THE FUTURE AND INSANE THEY HAVE ALSO WE ARE ALSO HAVING

[03:50:02]

A COMMUNITY ENERGY CHOICE THAT WERE PART OF ALSO.

SO, ARE WE GOING TO BE COMPETING AGAINST THAT? I THINK THERE'S SOME LARGER QUESTIONS DIRECTLY YOU MIGHT WANT TO DIVE INTO WHEN WE SPEAK OF ENERGY, I MEAN, WE ALL WANT TO GET THERE, BUT WHAT'S THE BIG PICTURE? WHAT ARE THE STEPS TO GET TO THE DIFFERENT PROJECTS?

>> THANK YOU FOR THAT. I THINK COUNSEL [INAUDIBLE] WE'RE JUST BRINGING UP SOME OF THESE PROJECTS HAVE BEEN DIRECTIONS HAVE BEEN GIVEN OVER THE YEARS, SO IT'S ON, SKETCHY PLAN AND STAFF NEEDS CLARITY, ALIGNMENT OF WHERE WE WHAT TO MOVE FORWARD IN THE NEXT FIVE YEARS. GREAT CONVERSATION.

>> JUST ANOTHER COMMENT, AND BISHOP ALREADY BROUGHT IT TO MIND.

OVER THE YEARS, YOU WATCH THE COST OF THINGS GO UP.

YOU ALSO WATCHED THE COST OF THINGS GO DOWN, SUCH AS ALVIN ARCADE THE PART OF IT WAS AN OLD PROGRAM FOR $50 MILLION MAINTAINING AT 38.

I HAVEN'T SEEN JUST ANY LARGE PROJECTS IN THE NEXT FIVE YEARS, YOU'RE GOING TO PAY A BIG PRICE FOR IT.

BUT BEYOND THAT, I'M NOT SURE.

I'VE SEEN THE DOWNSIDE OF MORE THAN ONCE.

WHERE YOU'VE BEEN ABLE TO BUILD A PROJECT BECAUSE YOU'RE SHOVEL-READY AND THE TIMING WAS RIGHT.

>> ANY OTHER QUESTIONS ON ORION?

>> I DIDN'T WANT TO EXTEND NOW THAT YOU HAVE MENTIONED THE RIGHTS AND TURN-OFF OF ENERGY STORAGE PORTION WERE YOU INTERESTED IN HEARING IN ON THAT ONE?

>> NO, IT'S JUST WAS A GOOD IDEA.

>> YEAH, [OVERLAPPING] GOOD. THANK YOU.

GREAT. LET'S SEE IF WE CAN TAKE ONE MORE FIRE STATION SEVEN.

THERE'S A SPECIFIC QUESTION ON THAT.

WE'LL TALK ABOUT THE STEPS. COUNCIL MEMBER [INAUDIBLE]

>> [INAUDIBLE] THAT WAS MYSELF AS WELL.

I KNOW WE HAVE THE OPPORTUNITY TO SEE THIS IN THE PAST MONTH I BELIEVE IT WAS.

JUST TO GET A TIMELINE ON IT.

I KNOW THAT WE HAD TALKED ABOUT IT DURING THAT MEETING, BUT I'D LOVE TO JUST REITERATE THAT TO THE PUBLIC AND THEN ALSO HOW THIS ADDRESSES ARE STANDARDS OF COVER? IF WE CAN ADDRESS THAT AS WELL.

>> WITH REVERSE TO THE TIMELINE THAT IS ASSOCIATED WITH WHAT WE PREVIOUSLY AGREED ON WAS THE TEMPORARY FIRE STATION NUMBER SEVEN, WHICH WE ARE STILL ON TARGET WITH THOSE MISSION ON FIRE STATION TWO, AND THEN THE TEMPORARY FIRE STATION SEVEN IN JANUARY 2023.

IN THE MEANTIME, IN THE VERY NEAR FUTURE, WE WILL BE COMING FORWARD WITH THE DRAFT LICENSING AGREEMENT FOR DISCUSSION AND THEN WE HAVE HAD DISCUSSIONS WITH REGARDS TO POTENTIAL FUTURE SITES IN THE FUTURE FOR FUTURE SITES FOR THE PERMANENT FIRE STATION SEVEN.

THEN THERE ARE ALSO OTHER SITES THAT WILL BE TAKEN INTO CONSIDERATION.

THE TARGET ON THAT I BELIEVE IT WAS IN 2028 TIME FRAME AND I'D LIKE TO INVITE ASSISTANT FIRE CHIEF RODELLI TO COME AND REFERENCE THE STATUS OF THE CURRENT.

>> THOUGHTFUL WITH THE STANDARDS OF OUR STUDY IN [OVERLAPPING].

>> GET A LITTLE CLOSER TO THE MIC.

>> IS THAT BETTER?

>> BETTER.

>> BUT THE STANDARDS WE'VE COVERED STUDY, WE DID THE REPORT BACK IN 2020.

THE REPORT WAS A COMPREHENSIVE STUDY OF THE FIRE DEPARTMENT'S PERFORMANCE AND GAVE SOME RECOMMENDATIONS AS TO HOW TO ADDRESS SOME OF THE DEFICIENCIES IN RESPONSE TIME.

WHAT WE'RE LOOKING AT RIGHT NOW IS INCREASED RESPONSE TIMES IN VARIOUS STATIONS IN ONE'S AREA AND INCREASED RESPONSE TIMES AND OUR FIRE STATION CORE AREA.

DUE TO THE INCREASE IN POPULATION, INCREASE IN TRAFFIC, THERE ARE SEVERAL FACTORS THAT GO INTO THAT.

ADDITIONAL FACTORS SIMULTANEOUS CALLS AND WE HAVE ADDITIONAL CALL VOLUME.

YOU MAY HAVE CALLS THAT HAPPENED IN THE SAME DISTRICT MORE THAN ONCE AT A TIME AND TO ADDRESS THOSE UNITS WHO COME FROM FURTHER AWAY.

[NOISE] SO HAVING FIRE STATION 7 IN-BETWEEN THE TWO BUSINESS DISTRICTS CERTAINLY WOULD ADDRESS BOOK RESPONSE TIMES AND HOPEFULLY [INAUDIBLE].

>> JUST BRIEFLY, SINCE YOU'RE UP HERE, THAT PARTICULAR REPORT HAD INDICATED, IF I'M NOT MISTAKEN, IF I REMEMBER ACCURATELY FROM A COUPLE OF YEARS AGO THAT WE ACTUALLY WOULDN'T BE LOOKING AT, WITH THE POPULATION AT THE TIME, A NEED FOR AND A POTENTIAL FOR TWO MORE FIRE STATIONS ON TOP OF THAT.

AND FOR NOW AND WE'RE HOPING THAT WE CAN AT LEAST ADDRESS IT WITH THIS TEMPORARY FIRE STATION.

>> THAT'S CORRECT. THE TEMPORARY FIRE STATION 7 WOULD BE THE ONE WE ARE TALKING ABOUT THE ENERGY PROPERTIES ACTUALLY ON THE ENERGY PROPERTY AND THEN THE PERMANENT FIRE STATION 7, WE'RE STILL LOOKING AT THE POTENTIAL SITES AND WHERE THAT WOULD BE, AND THEN DOWN INTO THE FUTURE, THE STANDARDS OF COVER ADDRESS THE STATION 8 AND STATION 9, AND THOSE ARE SOMETHING THAT WE'LL BE ABLE TO LOOK OUT FOR FUTURE GROWTH IN THE BILL AND WHAT THE [INAUDIBLE] OF THAT WILL BE.

THOSE ARE THE TWO STATIONS THAT WE'LL LOOK AT.

[03:55:02]

>> GREAT. THANK YOU.

>> THANK YOU.ANY OTHER QUESTIONS ABOUT FIRE STATION 7? WHAT I'D LIKE TO DO IS THAT WE PAUSE ON GOING THROUGH THE PROJECTS THIS MOMENT, SEE IF THE COUNCIL HAS ANY QUESTIONS OR CLARIFICATION IN ADDITION TO WHAT YOU'VE ALREADY IDENTIFIED, THERE WAS A COUPLE OF IDENTIFICATIONS TO HAVE THE BRIEFING REPORT ON A SPECIFIC PROJECT.

IS THERE ANYTHING SPECIFICALLY THAT YOU'D LIKE THE STATE TO DO BEFORE NEXT WEEK.

AND THE INTENTION WOULD BE THEN NEXT WEEK WE COME BACK TO THIS CONVERSATION PROVIDING INFORMATION THAT YOU NEED IN ORDER TO MAKE THE INFORMED OR HAVE AN INFORMED DISCUSSION ABOUT HOW WE MIGHT WANT TO SHIFT PRIORITIES THAT ARE ON THE CIP PLAN.

ANYTHING YOU'D LIKE TO IDENTIFY THERE THAT WOULD SUPPORT THE STAFF AND

[COUNCIL COMMENTARY AND REQUESTS FOR CONSIDERATION OF MATTERS ]

THE STUDENT COUNCIL FOR A MORE ROBUST CONVERSATION NEXT WEEK.WE'LL GO TO COUNSELOR [INAUDIBLE] AND THEN COUNSELOR [INAUDIBLE].

>> I JUST WANT TO MAKE SURE THAT CITY HALL PROJECT REMAINS ON BOARD BEFORE WE GET TO THE, MAYBE WHATEVER BRAGGING REQUIRE ORGANIZATION THAT THEY BLEW PREVIOUS HOUSEHOLD, DIRECTED THIS AND YOU COME BACK TO THIS COUNCIL AND THE MADE THE DECISION YOUR WEBSITE OR NARROW IT DOWN TO ALL OF US.

BESIDES A CLARIFICATION ON WHEN THAT'S COMING TO COUNCIL THAT I JUST WANTED TO FOLLOW US.

>> COUNSELOR [INAUDIBLE] IS NEXT ON THE LIST AND SO WE WORK THAT ANOTHER TIME WE GET TO THAT NEXT, SO WE CAN PICK THAT UP NEXT TIME AROUND.I DO THINK JUST TO CLARIFY THAT JUNE IS WHEN IT'S SUPPOSED TO BE COMING BACK.

IS THAT RIGHT? [NOISE] YES.

COUNCIL MEMBER BOB PATEL.

>> YES, THANK YOU. I KNOW WHEN WE WERE TALKING ABOUT SOME OF THE DIFFERENT CIP PROJECTS I HAD BROUGHT UP WITH REVERTS TO SPECIFICALLY ADDING IF THERE ARE OTHER CIP LITERALLY INCOMPLETE STREETS AND THE DIGITS DOESN'T MEAN THOSE FOUR FOR US.IT WOULD JUST BE HELPFUL TO UNDERSTAND THIS LOOKING AT IMPROVEMENTS IN THIS BUT AT THE SAME TIME, KNOWING THAT IT'S COMPLETE, STREETS WOULD BE REALLY GREAT.

AND THEN ANYTHING THAT IS FALLING WITHIN.THEN WE TALKED ABOUT GROWTH MANAGEMENT, BUT THERE ARE [INAUDIBLE] SINCE I'M LOOKING AT TRAIL OR PEDESTRIAN IMPROVEMENT, THOSE ALL FALL WITHIN OTHER PLANS, WHETHER IT'S SUSTAINABLE MOBILITY PLAN, TRAIL IMPROVEMENTS PLAN, PARKS AND REVENUE MASTER PLAN OR SOMETHING, ANY OF THOSE.

I DON'T KNOW IF THAT'LL BE A HEAVY LIFT, BUT I GUESS MY BIGGEST THING IS IF THERE'S A WAY IT DOESN'T HAVE TO BE NEXT WEEK, BUT IF THERE'S A WAY TO JUST DESIGNATE IT, SO THAT WAY WE KNOW WHERE THAT CONNECTS BACK TO ANY OF THOSE MASTER PLANS.

I THINK IT JUST ALLOWS FOR WHOEVER WANTS TO KNOW WHERE THEY CAN FIND THAT BECAUSE IT'S OBVIOUSLY OVERLAPPING WITH ANY OF THOSE AND THAT'S BEING PULLED OUT OF THEIR FIRST VIPS.

>> COUNCILOR [INAUDIBLE] UNTIL THAT IS UNIDENTIFIED ACTUALLY, AS WE'VE BEEN LOOKING AT THE FIVE-YEAR STRATEGIC PLAN, HOW DO WE CONNECT THE DOTS ON SOME OF THOSE ONGOING PLANS? SO I WOULD ANTICIPATE YOU'LL SEE SOME OF THAT AS WE SHARE A DRAFT OF THE FIBERS PLAN.

IF THAT'S NECESSARY TO INFORM THE PRIORITIZATION DISCUSSION.

IT'S NOT SO THAT'S WAITING.

>> I THINK I JUST WANT TO BE ABLE TO SEE IT AND I LOVE THAT IT WILL BE INCORPORATED IN A FOUR TO FIVE-YEAR STRATEGY PLAN.

I JUST WANTED TO BRING IT UP AS JUST BEING ABLE TO SEE THAT CONNECTIVITY AND THEN HOW COMPREHENSIVE ALL OF THIS IS AND HOW IT ALL DOES INTERSECT WITH ONE ANOTHER IS REALLY HELPFUL.

AND JUST BEING ABLE TO KNOW THAT, "HEY, WE DO HAVE THIS IN OTHER PARTS OF OUR DIFFERENT PLANS THAT WE'VE PUT TOGETHER FOR THE CITY AND UNDERSTANDING WHERE WE ARE PULLING THAT UP.

BECAUSE SOMETIMES FOLKS MIGHT THINK THAT WE'RE GOING TO GO OR NOT.

IT'S ACTUALLY SOMETHING THAT'S BEEN PLANNED AND THOUGHTFUL AND BEEN CONSIDERED PREVIOUSLY AND IT'S INCORPORATED [INAUDIBLE] THAT WE HAVE.

>> GREAT. THANK YOU, SIMON AND TOO I WOULD USUALLY DO WITHIN THE STAFF LEVEL, IT SAYS ONE OF THE QUESTIONS WE ASKED US FOR DEVELOPING AND WE IDENTIFY THE SPECIFIC ITEMS THAT ARE SUGGESTED EARLIER SO THAT THE INFORMATION IS THERE.

>> THANK YOU. SO WE WILL PLAN TO COME BACK TOGETHER, TACKLE THIS LIST.

HOPEFULLY THAT WILL GIVE YOU THE INFORMATION YOU NEED IN ORDER TO PRIORITIZE YOUR ACCELERATED, DECELERATED TIMELINE OR ADD OR REMOVE FROM LIST.

I REALLY WANT TO THANK YOU AND I'LL TURN OVER TO THE MAYOR IN JUST A MINUTE? I REALLY WANT TO THANK YOU FOR YOUR ENERGY TODAY.THIS IS A LOT OF STAFF PRESENTATIONS, A LOT OF DIALOGUE, THANK YOU TO THE COMMUNITY FOR BEING HERE AND SHARING YOUR INPUT AND INSIGHTS ABOUT THE WORK.

AS I SAID, I WOULD SAY AS [INAUDIBLE] IF THIS IS THE [INAUDIBLE] THE MIDDLE PART, ASK THESE QUESTIONS, YOU CAN MAKE REALLY GOOD DECISIONS.YOU HAVE ALL BEEN IN YOUR SEATS FOR A SUPER LONG TIME TO KNOW ALL THE CONVERSATIONS WITH THE [INAUDIBLE].

SO THANK YOU FOR HANGING IN THERE.THANK YOU TO THE STAFF FOR BEING HERE TO BE

[04:00:03]

READY TO ADDRESS QUESTIONS. UNTIL NEXT WEEK.

>> UNTIL NEXT WEEK. I DISABLE YOUR COMMENTS.

THANK EVERYONE IN THE SYSTEM FOR ME IN A VERY PRODUCTIVE AND INTERESTING CONVERSATION, AND I REALLY WANT TO THANK THE COMMUNITY MEMBERS WHO SPOKE. THANK YOU EVERYONE.

* This transcript was compiled from uncorrected Closed Captioning.