5. ACQUISITION OF REAL PROPERTY ALONG EL CAMINO REAL FROM SUNNY CREEK ROAD TO JACKSPAR DRIVE FOR WIDENING EL CAMINO REAL, CIP PROJECT NO. 6094

[13. CONSIDERATION OF A STAFF RECOMMENDATION TO DISCONTINUE EFFORTS TO INCLUDE LOT 11 AS A POTENTIAL SERVICE CENTER LOCATION IN NEGOTIATIONS WITH SDG&E AND NRG ENERGY ]

MOVING ON, DEPARTMENTAL AND CITY MANAGER REPORTS ITEM 13, CONSIDERATION OF STAFF RECOMMENDATION TO DISCONTINUE EFFORTS TO INCLUDE LOT 11 AS A POTENTIAL SERVICE CENTER LOCATION IN NEGOTIATIONS WITH STG AND E AND NRG.

AND MR. NORBY, DID YOU..

YES, I'LL JUST BE RECUSING FROM THIS DISCUSSION BECAUSE OF A REAL PROPERTY INTEREST AND IT'S AFFECTED.

OKAY, YOU'LL BE STEPPING DOWN.

SO WHEN MR. NORBY LEAVES THE ROOM.

ASSISTANT CITY MANAGER, IF YOU WANT TO MAKE THE INTRODUCTIONS.

THANK YOU, MAYOR. NOW, BATTING FOR THE PRESENTATION IS DEPUTY CITY MANAGER FOR COMMUNITY SERVICES, GARY BARBERIO.

THANK YOU, MR. PATNOE.

MAYOR, MEMBERS OF THE COUNCIL.

GARY BARBERIO, DEPUTY CITY MANAGER.

I AM HERE TONIGHT TO SPEAK WITH YOU ABOUT AN ITEM RELATED TO OUR NEGOTIATIONS WITH NRG AND SDG&E AND OUR ATTEMPTS TO RELOCATE THE SDG&E SERVICE CENTER.

JUST TO QUICKLY REMIND THE COUNCIL WHAT OUR 2014 AGREEMENT SAYS.

THE IDEA WAS TO TRY AND FIND A DIFFERENT LOCATION FOR THE SDG&E OPERATIONS CENTER OFFSITE ON A SITE THAT WAS MUTUALLY ACCEPTABLE TO SDG&E AND THE CITY.

AND IF WE WERE SUCCESSFUL IN DOING THAT UNDER THE AGREEMENT, THE CITY OF CARLSBAD WOULD RECEIVE TITLE TO THE OPERATIONS CENTER SITE, ALONG WITH THE CANNON PARK SITE.

AND A PROPERTY ON THE NORTH SHORE OF THE AGUA DIANA LAGOON.

SO THAT'S FROM THE 2014 POWER PLANT AGREEMENT WITH THE CITY NRG AND SDG&E.

THE LAST TIME WE WERE BEFORE THE COUNCIL ON THIS ITEM WAS OCTOBER 11TH.

AND AT THAT MEETING STAFF HAD TWO RECOMMENDATIONS TO THE COUNCIL.

YOU ACTED ON ONE OF THOSE AND THE SECOND ONE YOU CONTINUED PRIMARILY BECAUSE COUNCILMEMBER NORBY RECUSED HIMSELF FROM THIS CONVERSATION AND THEN MAYOR HALL WAS NOT AT THAT MEETING.

SO THE DIRECTION YOU DID GIVE US ON OCTOBER 11TH, YOU TOOK ONE OF THE RECOMMENDATIONS.

YOU DIRECTED STAFF TO CONTINUE OUR DISCUSSIONS REGARDING RECONFIGURING THE OPERATIONS CENTER ONSITE AND THEN TO RETURN TO THE COUNCIL ON DECEMBER 13TH WITH THE PROGRESS REPORT.

THE OTHER RECOMMENDATION WAS RELATED TO LOT 11, AND OUR RECOMMENDATION WAS IN RESPONSE TO DIRECTION YOU GAVE US ON JULY 26. AT THAT TIME, THE COUNCIL DIRECTED STAFF IN LOOKING FOR A RELOCATION SITE TO EMPHASIZE LOT 11 AS A POSSIBLE RELOCATION SITE.

IN OCTOBER, WHEN WE CAME TO YOU, WE PROVIDED INFORMATION REGARDING WHAT.

IS A MUTUAL DECISION BETWEEN CITY STAFF IN OUR G AND SDG.

THAT A LOT OF 11 IS NOT A FEASIBLE SITE AS A RELOCATION SITE.

AND AGAIN, COUNCIL DID NOT TAKE ACTION ON THAT RECOMMENDATION AND DIRECTED US TO COME BACK TO YOU WHEN WE HAD A FULL COUNCIL.

AND THAT'S WHERE WE'RE AT TONIGHT.

AND SO THE DIRECTION YOU GAVE ON THE 11TH WAS THE DELAY PROVIDING DIRECTION TO STAFF UNTIL ALL MEMBERS PARTICIPATING WERE HERE.

SO TO REITERATE THE RATIONALE AND REASONS FOR LOT 11 IN FEASIBILITY THAT WE SPOKE TO ON OCTOBER 11TH.

AGAIN, I WANT TO MAKE IT CLEAR THAT THIS WASN'T A DECISION SOLELY OF SDGG&E.

THIS WAS A DECISION FROM ALL THREE PARTIES, THE CITY, SDG&E AND NRG.

AND WE CONCLUDED THAT LOT 11 IS NOT A FEASIBLE RELOCATION SITE.

[00:50:05]

AND I WILL SAY REPRESENTATIVES FROM NRG AND SDG&E ARE HERE TONIGHT AND WILL BE SPEAKING AND ANSWERING ANY QUESTIONS THE COUNCIL MAY HAVE.

SO THE REASONS FOR THE INVISIBILITY RELATE TO THE THINGS THAT I'M COVERING ON THIS SLIDE.

THERE ARE SIGNIFICANT ENVIRONMENTAL CONCERNS WITH THE SITE BIOLOGICAL RESOURCES, CULTURAL RESOURCES AND LAND USE COMPATIBILITY.

BECAUSE OF THOSE AND OTHER REASONS, THERE'S GOING TO BE A VERY DIFFICULT TIME OBTAINING THE NECESSARY ENTITLEMENTS AND PERMITS THAT WOULD BE NEEDED TO CONSTRUCT AN OPERATION CENTER ON THAT SITE.

IF YOU RECALL, LOT 11 IS CURRENTLY DESIGNATED OPEN SPACE AND THAT WAS PUT IN PLACE BY PROP D, PROPOSITION D BACK IN 2006, A VOTER INITIATIVE.

AND CURRENTLY THE OPEN SPACE GENERAL PLAN AND ZONE DO NOT ALLOW FOR OPERATIONS CENTERS.

SO WE WOULD HAVE TO DO SOMETHING ENTITLEMENT WISE TO CLEAR UP THAT CHALLENGE, WHICH MAY INVOLVE ANOTHER VOTE OF THE PEOPLE TO REMOVE THE PROPERTY FROM OPEN SPACE.

WE ALSO HAVE GENERAL PLAN POLICIES THAT WHEN YOU REMOVE ANY PROPERTY FROM OPEN SPACE, YOU HAVE TO MAKE UP THAT OPEN SPACE AND LIKE ACREAGE AND LIKE KIND OF OPEN SPACE.

IT'S ALSO IN THE COASTAL ZONE IN AN AREA WHERE ANY CHANGE OF LAND USE WOULD REQUIRE CALIFORNIA COASTAL COMMISSION REVIEW AND APPROVAL.

AND WE ALSO DO NOT HAVE THE COASTAL DEVELOPMENT PERMIT RIGHTS IN THAT AREA.

SO THE COASTAL DEVELOPMENT PERMIT, IF WE GOT THAT FAR, WOULD BE COMING FROM THE COASTAL COMMISSION.

IN ADDITION, ALL THE ENVIRONMENTAL CONCERNS WOULD APPLY TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT REVIEW THAT WOULD BE REQUIRED FOR ALL THOSE LAND USE PERMITS.

SO THE ENVIRONMENTAL CONCERNS AND THE DIFFICULTY IN OBTAINING NECESSARY PERMITS LEADS TO A REAL TIMING ISSUE.

HOW LONG IT WOULD TAKE TO GET TO A POINT OF LAND USE APPROVALS AND IF THAT WOULD BE POSSIBLE, CONSIDERING IT MIGHT NEED A VOTE OF THE PEOPLE.

AND THEN ON TOP OF THAT, BECAUSE IT'S A PUBLIC UTILITY, WE WOULD NEED THERE WOULD BE PROCESSING AND PERMITS THAT WOULD NEED TO COME APPLICATIONS TO THE CALIFORNIA PUBLIC UTILITIES COMMISSION AFTER ALL THAT.

SO A VERY LENGTHY ENTITLEMENT TIME FRAME.

AND THEN THE LAST REASON RELATES TO COSTS, PRIMARILY THE ENVIRONMENTAL CONCERNS, THE DIFFICULTY AND THE PERMITS AND THE TIMING ISSUES LEAD TO A MUCH HIGHER COST TO DEVELOP THAT SITE AS A SERVICE CENTER.

AND IT LEADS TO A BIG GAP BETWEEN WHAT IS THE AVAILABLE FUNDING THAT ENERGY MIGHT BE COMMITTED TO, PROVIDING AN SDG TO WHAT THE ACTUAL COST OF DEVELOPING THE OPERATION CENTER WOULD BE WITH.

I JUST REMIND YOU OF THE PROXIMITY OF LOT 11 TO THE SERVICE CENTER SITE.

A LOT OF 11 IS ON THE NORTH SIDE OF CANNON ROAD, EAST OF THE FREEWAY.

IT'S ABOUT A 20 ACRE SITE.

BUT ALL OF THIS LAND HERE THAT SDGE IS THE OWNER OF WAS INCLUDED IN THE PROPOSITION D BACK IN 2006.

AND THEN YOU CAN SEE THE SERVICE CENTER SITE HERE IN RED.

BASED ON YOUR DIRECTION IN OCTOBER, OCTOBER 11TH, WE ARE CONTINUING TO DISCUSS VARIOUS OPTIONS TO RECONFIGURE THE OPERATIONS CENTER ON SITE, RELOCATING IT EASTWARD AGAINST THE TRACKS ONTO BOTH SDG&E LAND AND NRG PROPERTY, WHICH WOULD LEAVE STILL A SIGNIFICANT AMOUNT OF ACREAGE ON THE WESTERN PORTION OF SDGE'S PROPERTY THAT COULD BE TRANSFERRED TO THE CITY SOMEWHERE IN THE AREA OF TEN PLUS ACRES. THIS IS JUST SOME GRAPHICS THAT SHOW WHAT THAT COULD LOOK LIKE.

PRIMARILY, WE'RE REALLY FOCUSING MORE ON THE YELLOW DASH LINE OPTION, WHICH WOULD INCLUDE SDGE PROPERTY AS WELL AS NRG PROPERTY IN THIS AREA, FREEING UP ALL OF THIS LAND TO THE WEST THAT COULD POTENTIALLY BE TRANSFERRED TO THE CITY.

SO OUR RECOMMENDATION TONIGHT IS FOR YOU TO PROVIDE US DIRECTION TO DISCONTINUE OUR EFFORTS TO INCLUDE THE LOT 11 PARCEL IN OUR NEGOTIATIONS, AND THEN STAFF WILL CONTINUE NEGOTIATIONS REGARDING OTHER ALTERNATIVES.

WE ARE, BASED ON YOUR DIRECTION, WE ARE CURRENTLY SCHEDULED TO RETURN TO THE COUNCIL ON DECEMBER 13TH, WHICH IS LESS THAN FOUR WEEKS FROM NOW.

I CAN TELL YOU THAT WE CAN GIVE YOU STATUS ON DECEMBER 13TH, BUT WE WON'T BE COMING TO YOU WITH A PRETTY PACKAGE WITH A BOW ON IT

[00:55:03]

YET. SO IF COUNCIL'S DESIRE IS TO MAYBE DELAY THAT DECEMBER 13TH TO SOMETIME EARLY IN 2023, ALMOST SAID 24, I DIDN'T MEAN THAT IN 2023 WE WOULD TAKE THAT DIRECTION AS WELL.

AND WITH THAT, I'LL CLOSE MY PRESENTATION.

I'M AVAILABLE FOR QUESTIONS.

AND AS I SAID, SDG&E AND NRG REPRESENTATIVES ARE HERE TONIGHT AS WELL.

THANK YOU. SO THANK YOU, MR. BARBERIO. I HAD QUITE A BIT OF CLARITY, SO THANK YOU.

THAT WAS A VERY GOOD PRESENTATION.

SO SPEAKERS.

OUR SPEAKERS ARE FROM SDG&E AND NRG.

WOULD YOU LIKE FOR ME TO CALL THEM AT THIS TIME? SURE. THE FIRST SPEAKER IS JOE GABALDON, FOLLOWED BY BRITTANY APPLESTINE.

GOOD EVENING, HONORABLE MAYOR AND MEMBERS OF THE COUNCIL.

I AM JOE GABALDON, SDG&E NEWS PUBLIC AFFAIRS MANAGER FOR NORTH COAST COMMUNITIES.

WE THANK YOU FOR THIS OPPORTUNITY TO SHARE OUR PERSPECTIVE ON THIS EFFORT.

FIRST, I'D LIKE TO CONGRATULATE MAYOR ELECT BLACKBURN ON YOUR WIN AND COUNCIL MEMBER BHAT-PATEL ON YOURS.

WE'RE REALLY EXCITED AND APPRECIATIVE OF YOUR DEDICATION TO PUBLIC SERVICE AND WE LOOK FORWARD TO CONTINUING TO COLLABORATE WITH YOU AND CERTAINLY WITH MAYOR HALL AND COUNCILMEMBER NORBY.

WE APPRECIATE THE PARTNERSHIP THAT WE'VE HAD WITH YOU ALL OVER THE YEARS AND WE EXPECT TO CONTINUE TO.

BE INVOLVED AND PARTNER ON SO MANY MORE INITIATIVES IN THE COMMUNITY.

SO THANK YOU ALL. ONCE AGAIN, I'M JOINED BY SEVERAL MEMBERS OF THE TEAM AND I'D LIKE TO REMIND THE COUNCIL AND THE.

AND OUR CUSTOMERS THAT OUR MISSION IS TO IMPROVE LIVES AND COMMUNITIES BY BUILDING AND OPERATING THE CLEANEST, SAFEST AND MOST RELIABLE ENERGY INFRASTRUCTURE COMPANY IN AMERICA TO SUPPORT MISSION CRITICAL OPERATIONAL NEEDS.

OUR NORTH COAST SERVICE CENTER MUST BE CENTRALLY LOCATED BETWEEN HIGHWAY 56 AND LAS PULGAS ROAD TO THE NORTH TO ENABLE US TO SERVE MULTIPLE COMMUNITIES IN NORTH SAN DIEGO COUNTY.

CONVENIENT ACCESS TO HIGHWAY, INTERSTATE FIVE IS KEY, AND BY NO MEANS IS THE SERVICE CENTER MERELY A PARKING LOT FOR FLEET AND EMPLOYEE VEHICLES.

INSTEAD, IT INCLUDES EQUIPMENT AND MATERIAL THAT ARE USED DAILY DURING PLANNED AND UNPLANNED OUTAGES TO RESOLVE THOSE ISSUES.

AND OF COURSE, OUR FLEET OF BUCKET TRUCKS AND ANCILLARY VEHICLES ARE MAINTAINED AND REPAIRED ONSITE.

FURTHERMORE, THE SERVICE CENTER SERVES AS A HUB FOR SDG&E NEEDS CRITICAL OPERATIONAL RESPONSE TO LOCAL EMERGENCIES SUCH AS POWER OUTAGES, CUSTOMER CONCERNS, CONSTRUCTION DIG INS THAT RUPTURE BOTH ELECTRICAL AND NATURAL GAS LINES.

MOST IMPORTANTLY, IT'S A PLACE WHERE OUR HIGHLY TRAINED EMPLOYEES WORK 24 SEVEN TO PROVIDE OUR CUSTOMERS WITH THE BEST POSSIBLE SERVICE.

I AM NOW PLEASED TO TURN IT OVER TO BRITTANY, OUR DIRECTOR OF REGIONAL PUBLIC AFFAIRS.

IF YOU WANT TO START. SORRY.

GOOD EVENING, MAYOR AND COUNCIL MEMBERS ALSO CONGRATULATION COUNCILMEMBER PATEL AND COUNCILMEMBER BLACKBURN ON YOUR RECENT ELECTION.

THANK YOU FOR LETTING US SPEAK THIS EVENING.

AT THE LAST COUNCIL MEETING YOU DID ASK US TO COME BACK AND TALK A LITTLE BIT MORE ABOUT THE OPTIONS THAT WE ARE DISCUSSING WITH NRG AND THE CITY.

ESPECIALLY IN LIGHT OF THE SETTLEMENT AGREEMENT, SDG&E'S OPERATIONAL NEEDS AND WE ALSO HAVE THESE GOALS AND THE REGULATIONS SET BY THE CALIFORNIA PUBLIC UTILITIES COMMISSION.

AS MENTIONED IN THE CITY MANAGER'S REPORT, ALL THREE PARTIES HAVE FOCUSED ON A RECONFIGURED SITE THAT'S GOING TO BE EAST OF WHERE C&O CENTER CURRENTLY IS LOCATED.

GIVEN THE CONCERNS OF EACH PARTY, THIS CONFIGURATION SEEMS TO MEET THE GOALS FOR EACH PARTY AND WOULD POTENTIALLY OPEN UP THE PROPERTY THAT SDG&E CURRENTLY OWNS THAT FRONTS ON CARLSBAD BOULEVARD.

WE RECOGNIZE THAT THE COUNCIL AND THE STAFF AND THE COMMUNITY MAY BE FRUSTRATED THAT WE HAVE TAKEN SUCH A LONG TIME TO FINALIZE THE RELOCATION PLANS WITH OUR PARTNERS.

WHILE THIS PROCESS HAS TAKEN LONGER THAN ANY OF US WOULD HAVE LIKED, IT IS IMPORTANT TO RECOGNIZE THAT THIS RELOCATION INVOLVES A VERY COMPLEX REGULATORY TRANSACTION THAT WILL REQUIRE THE CPUC'S APPROVAL.

OUR EXPERIENCE HAS SHOWN THAT THE MORE DILIGENCE WE CAN APPLY TO THIS STUDY AND IN A DECISION AMONGST ALL THE PARTIES THAT IT'S GOING TO HELP US PREPARE A STRONG AND THOROUGH APPLICATION FOR THE COMMISSION'S REVIEW.

THIS DILIGENCE IS ALSO NEEDED TO ENSURE THAT THE RELOCATED SERVICE CENTER CONTINUES TO SUPPORT A HIGH SERVICE LEVEL FOR RESIDENTS IN OUR NORTH COAST COMMUNITIES.

[01:00:01]

KEEPING TO A SCHEDULE OF MEETINGS OF EVERY TWO WEEKS, THE PARTIES ARE WORKING TO FINALIZE A PROPOSAL, AS MR. BARBERIO JUST TALKED ABOUT.

WE ARE CONTINUING TO WORK ON A MUTUAL PROPOSAL.

AT OUR LAST MEETING, WE WERE ALSO ASKED TO DISCUSS WHY WE WOULD ELIMINATE PARCEL 11, AND I WANTED TO REITERATE THE KEY ISSUES THAT MR. BARBERIO ALREADY PRESENTED THE TIMING, THE COST, THE ENVIRONMENTAL ISSUES AND THE ADDITIONAL PERMITS THAT WOULD BE NEEDED TO RELOCATE TO LOT 11.

THE SITE, THEREFORE, WOULD REQUIRE COSTLY CONSTRUCTION TECHNIQUES AND MITIGATION MEASURES AND ITS MOST EXPENSIVE OF THE THREE POTENTIAL SITES THAT WE ARE LOOKING AT ON CANNON ROAD . THE PRESENCE OF ENVIRONMENTALLY SENSITIVE AREAS INCREASES THE REGULATORY COMPLEXITY.

IT LENGTHENS THE TIMELINE FOR AGENCY REVIEW AND INCREASES THE UNCERTAINTY ABOUT IF AND WHEN THE RELOCATION COULD PROCEED.

WE REMAIN DEEPLY COMMITTED TO FINDING A VIABLE AND MUTUALLY ACCEPTABLE SOLUTION TO RELOCATE OUR CENTER.

AND WE ARE, WE WANT TO BE YOUR PARTNER, AND WE LOOK FORWARD TO KEEPING YOU INFORMED OF OUR PROGRESS ON THIS MATTER.

I'M HAPPY TO ANSWER QUESTIONS OR I DON'T KNOW IF WE GO TO ANOTHER SPEAKER.

QUESTIONS. YES.

AND ACTUALLY THANK YOU.

AND ACTUALLY, BEFORE WHILE I WAS JUST GOING TO ASK IF WE'RE GOING TO HEAR FROM THE OTHER PARTY, THE MISSING PARTY NRG, BEFORE WE GO TO QUESTIONS, WHAT ARE THEY? SPEAKER YES, ERIC LOUISA, THANK YOU.

YEAH. LET'S.

MAYOR HALL, COUNCIL.

I'M ERIC LOUISA. I'M WITH NRG AND I THINK WE WOULD JUST EXPRESS OUR AGREEMENT WITH STAFF AND SDG&E WITH RESPECT TO THE RECOMMENDATION TO DISCONTINUE WORK ON LOT 11.

THE PARTIES HAVE BEEN DILIGENTLY WORKING TOGETHER TO FIND A SOLUTION, BUT THE CHALLENGES WITH A LOT 11, AS EXPLAINED BY THE CITY AND SDG&E ARE VERY LARGE.

WE HAVE A LOT OF WORK LEFT TO DO, BUT THE PARTIES ARE WORKING CONSTRUCTIVELY AND COLLABORATIVELY TO EVALUATE THE REORIENTATION OF THE SERVICE CENTER AWAY FROM THE COAST AND TOWARD THE RAILROAD TRACKS.

AND WE BELIEVE THAT THOSE DISCUSSIONS SHOULD CONTINUE.

WE HAVE A MEETING TOMORROW AND ARE LOOKING FORWARD TO CONTINUING WORK WITH THE OTHER PARTIES.

THANK YOU. ANY OTHER SPEAKERS.

THAT CONCLUDES ALL THE SPEAKERS.

MEMBER ACOSTA. GREAT, THANK YOU.

I'M GOING TO BE BRIEF.

I THINK IN GENERAL, I MAY KNOW THE ANSWERS TO SOME OF THESE, BUT I'D LIKE TO HEAR FROM YOU, MR. BARBERIO. THE TIMELINE FOR WORKING ON THE RELOCATION EVER SINCE THE SETTLEMENT AGREEMENT.

CAN YOU JUST GIVE US THE TIME FRAME AND THE TERMS OF THE SORRY, NOT THE TERMS OF THE AGREEMENT, THE GENERAL DESCRIPTION OF THE PACE OF HOW WE WORKED ON THIS RELOCATION SINCE THE BEGINNING AND HOW QUICKLY WE'RE WORKING ON IT NOW.

SO WE ENTERED INTO THE AGREEMENT IN JANUARY OF 2014 AND WE DID WORK DILIGENTLY WITH SDG&E FOR A COUPLE OF YEARS TO TRY AND FIND AN OFF SITE LOCATION.

AND THAT DID NOT PROVE VERY FRUITFUL.

AND I THINK IT WAS ABOUT A YEAR AND A HALF, TWO YEARS AGO NOW.

WE CAME TO THE COUNCIL WITH THE THE SHOPS AT CARLSBAD IDEA AND WE PURSUED THAT FOR ABOUT A YEAR.

AND THAT PROVED TO NOT BE A SOLUTION.

AND I THINK IN AUGUST WE CAME TO THE COUNCIL WITH THAT POSITION THAT THE SHOPS ISN'T GOING TO WORK.

AND SINCE AUGUST WE HAVE BEEN WORKING, NEGOTIATING AND MEETING ON ROUGHLY EVERY OTHER WEEK BASIS, EVERY TWO WEEKS.

I WILL SAY THAT BOTH ENERGY AND SDG ARE HAVE MADE A HUGE COMMITMENT OF TIME PERSONNEL, CONSULTANTS AND WORKING TOWARDS THIS.

AND, YOU KNOW, WILL WE HAVE A DEAL IN THE END? I FEEL PRETTY CONFIDENT THAT WE WILL.

IT MAY NOT BE THE DEAL THAT WE ANTICIPATED IN 2014, BUT REMEMBER, WE DO HAVE THE CONSOLATION PRIZE OF $10 MILLION IF WE'RE UNABLE TO ACHIEVE ANYTHING. AND SO THE DEAL THAT WE HOPE TO BRING TO THE COUNCIL WOULD BE SOMETHING THAT WOULD BE SIGNIFICANTLY MORE ADVANTAGEOUS TO THE CITY THAN $10 MILLION. THAT'S THE GOAL.

GREAT. THANK YOU. SO IT SOUNDS LIKE IN IN YOUR ANSWER AFTER THE 2014 SETTLEMENT AGREEMENT, THERE WAS SOME WORK, BUT IT WASN'T QUITE AS INTENSE AS IT IS NOW BECAUSE

[01:05:08]

THE MEETINGS ARE GOING ON EVERY OTHER WEEK NOW.

TO TRY TO REALLY BRING THIS TO A RESOLUTION, CORRECT? OKAY, GREAT. AND I KNOW OUR STAFF ALSO MADE A HUGE INVESTMENT IN STAFF TIME AND CONSULTANTS AS WELL TO TO MAKE THIS HAPPEN.

WHAT KINDS OF OTHER OFFSITE OPTIONS WERE CONSIDERED.

I KNOW YOU MENTIONED THE SHOPPES AT CARLSBAD WAS A SITE THAT WAS CONSIDERED AND DISREGARDED AND NOW WE'RE TALKING ABOUT LOT 11.

BUT WERE THERE TEN OR HOW MANY OTHER SITES IN GENERAL, ABOUT A DOZEN OTHER SITES WERE LOOKED AT WITHIN THE GEOGRAPHIC AREA THAT MET SDG&E'S CRITERIA, WHICH IS GENERALLY CITY LIMIT TO CITY LIMIT LINE, AND THEN NO FURTHER EAST THAN EL CAMINO REAL.

BUT FOR VARIOUS REASONS, SIZE, DIFFICULTY, ENVIRONMENTAL CONCERNS COST.

BOTH THOSE WERE REJECTED, AND MANY OF THOSE SITES THAT WE LOOKED AT EARLY ON ARE NO LONGER AVAILABLE.

THEY'VE BEEN DEVELOPED SINCE THEN.

GREAT. SO THANK YOU.

SO IT SOUNDS LIKE WE'RE INTENSELY WORKING WITH OUR PARTNERS AND WE'RE MEETING EVERY OTHER WEEK.

WE'VE LOOKED AT MANY DIFFERENT OPTIONS.

WE'VE THOROUGHLY INVESTIGATED SEVERAL OF THOSE THAT LOOKED VIABLE, AND WE ARE KIND OF WHITTLING DOWN TO VERY FEW OPTIONS NOW.

AND I SAW THE REASONS ON THE SLIDE AND WE TALKED ABOUT IT AT THE LAST MEETING THAT THE MAYOR WASN'T ABLE TO ATTEND WHERE WE TALKED ABOUT A LOT 11 HAVING A LOT OF ISSUES.

SO NOW WE'RE LOOKING AT THE BACKSIDE POTENTIALLY OF THE CURRENT SITE FOR TO RELOCATE SDG&E'S FACILITIES, WHICH WOULD FREE UP, YOU SAID, I BELIEVE, TEN ACRES TOWARDS THE FRONT, THE WEST, THE WESTERN SIDE, OCEAN FACING SIDE OF THIS SITE.

IS THAT CORRECT? YES, IT WOULD BE APPROXIMATELY TEN ACRES AND WOULD BE THE WESTERN TEN ACRES OF SDG&E'S PROPERTY. AND AT THE LAST MEETING, I REMEMBER ASKING ABOUT ANY KIND OF BUFFER THAT MIGHT BE NEEDED BETWEEN THE OPERATIONS OF SDG&E AND ANY USES THAT WE MIGHT CONTEMPLATE FOR THE WESTERN SIDE.

BUT IT STILL LOOKS LIKE ABOUT TEN ACRES WOULD BE USABLE.

IS THAT RIGHT? CORRECT.

OKAY, GREAT. THANK YOU.

AND YOU DID KIND OF TALK ABOUT THE LATEST THAT YOU'VE GOT A MEETING TOMORROW.

I KNOW THAT YOU'VE HAD MEETINGS SINCE OUR LAST COUNCIL DISCUSSION.

AND YOU ALSO MENTIONED THAT YOU'RE COMING BACK TO THE COUNCIL POTENTIALLY IN DECEMBER.

WELL, CURRENTLY, DECEMBER 13, UNLESS WE CHANGE THAT.

CORRECT. WE BASED ON COUNCIL'S DIRECTION, WE'RE SCHEDULED TO COME BACK ON THE 13TH.

WE COULD CERTAINLY DO THAT AND GIVE YOU AN UPDATE, BUT ALSO WILL BE THE FIRST COUNCIL MEETING FOR THE NEWLY ELECTED COUNCIL MEMBER.

ALSO THE FIRST ONE FOR THE NEWLY REELECTED COUNCIL MEMBERS AND THE MAYOR.

BUT SO IF THE COUNCIL DESIRES, YOU'RE NOT GOING TO HEAR A WHOLE LOT.

YOU'RE GOING TO HEAR WE'RE MAKING PROGRESS.

WE'RE MEETING, BUT WE DON'T HAVE ALL THE DEAL IN PLACE YET.

SO IT MAY MAKE MORE SENSE TO COME TO YOU IN EARLY 2023 RATHER THAN DECEMBER 13TH.

OKAY. THANK YOU. YOUR CHOICE, THOUGH, WE'RE HAPPY TO TO DO AS COUNCIL WISHES.

THANK YOU FOR ANSWERING ALL THE QUESTIONS AND I APPRECIATE YOUR HARD WORK.

DR. YES.

THANK YOU. AND THANKS FOR THE PRESENTATION.

JUST A FEW QUESTIONS, THEN I HAVE SOME COMMENTS.

SO WHAT IS THE FEASIBILITY OF MOVING FORWARD WITH? AND IT SOUNDS LIKE THERE'S A POTENTIAL FAVORED OPTION FROM WHAT'S BEING PRESENTED.

SO WHAT IS THE FEASIBILITY OF MOVING FORWARD WITH THE SERVICE CENTER SITE? IT SOUNDS LIKE THAT IS A POTENTIAL OPTION.

SO I JUST WANT TO MAKE SURE THAT THAT'S NOT GOING TO BE SCRATCHED OFF THE TABLE ALL OF A SUDDEN, BECAUSE I'M SURE MANY FOLKS ARE WONDERING, YOU KNOW, LIKE WHAT'S WHERE ARE WE AT? WHERE ARE WE GOING? GIVEN THAT WE'RE ALMOST AT THE NINE YEAR MARK IN JANUARY.

SO I WAS JUST CURIOUS IN TERMS OF FEASIBILITY OF MOVING FORWARD, DO WE FEEL THAT THERE IS MORE FEASIBILITY WITH THAT PARTICULAR SITE THAN THE OTHER DOZEN SITES THAT WE'VE ALREADY SCRATCHED OFF THE TABLE? ABSENT SOME 12 TO 16 ACRE PIECE OF LAND COMING OUT OF NOWHERE IN CARLSBAD, WHICH I DON'T SEE HAPPENING AND BEING AVAILABLE.

I THINK THE RELOCATION ON SITE IS THE ONLY FEASIBLE ALTERNATIVE THAT IS LEFT.

AND I FEEL. NOW RELATIVELY CONFIDENT THAT WE CAN AT LEAST STRUCTURE A AN AGREEMENT BETWEEN THE THREE PARTIES, AS SDG REPRESENTATIVES SPOKE TO.

[01:10:03]

IT ISN'T JUST WITHIN OUR CONTROL.

WE DO WE WILL HAVE TO GO THROUGH AND MAKE AN APPLICATION TO THE PUBLIC UTILITIES COMMISSION, CALIFORNIA PUBLIC UTILITIES COMMISSION, AND THEY WILL HAVE TO WEIGH IN AND APPROVE AS SDG&E IS A PUBLIC UTILITY.

SO THE TRANSFER OF LAND AND ANY FUNDING THAT WOULD BE NEEDED FROM SDG&E TO BUILD THE OPERATIONS CENTER AND THE SITE ITSELF. AND DOES IT SERVE THE RATEPAYERS WELL? THOSE ARE DECISIONS THAT ULTIMATELY ARE THE PUCS AND NOT THE THE THREE PARTIES OR THE CITY COUNCIL OF CARLSBAD.

SO THAT'S THE VERY CONFIDENT THAT WE'RE PROBABLY GOING TO HAVE A DEAL BEFORE THE COUNCIL.

BUT THERE'S OTHER QUESTION MARKS OUT THERE STILL CHALLENGES.

OKAY. AND A COUPLE OF CLARIFYING QUESTIONS FROM THAT QUESTION AND THE ANSWER THAT YOU PROVIDED.

IT SOUNDS LIKE THERE ARE NOT OTHER OPTIONS BEING CONSIDERED.

IT'S JUST THIS PARTICULAR ONE BASED ON WHAT YOU JUST SHARED, THAT THE ONLY FEASIBLE ALTERNATIVE LEFT IS THIS ONE.

YES. OKAY.

THAT'S HELPFUL. AND THEN IN TERMS OF THE CPUC'S TIMELINE AS TO WHEN THEY LOOK AT THINGS AND WHAT THAT WHOLE PROCESS LOOKS LIKE, ARE WE LOOKING AT MONTHS, A YEAR? WHAT? JUST SO AGAIN, WE CAN KIND OF PUT AT LEAST SOME SORT OF A TIME FRAME IN MIND FOR PEOPLE AS TO WHAT THIS LOOKS LIKE? YES. AND I MAY ASK SDG&E TO CLEAN UP ANY MESS I LEAVE WITH THIS ANSWER.

ONCE WE HAVE AN AGREEMENT BETWEEN THE THREE PARTIES, IT WILL BE ABOUT A YEAR TO PREPARE AND MAKE AN APPLICATION TO THE PUC AND ABOUT A YEAR AT LEAST IN PROCESSING TO A DECISION AT THE PUC.

SO IF WE WERE SUCCESSFUL IN ACHIEVING AN AGREEMENT, LET'S SAY IN THE FIRST QUARTER IN 2023, IT WOULD BE TWO YEARS AFTER THAT BEFORE WE WOULD KNOW THE ANSWER FROM THE PUC.

SO WE'RE LOOKING AT EARLIEST 2025? CORRECT.

YES. AND WE'RE LOOKING AT THE COST ESTIMATES FOR THIS CONSTRUCTION BASED ON THAT KIND OF SCHEDULE.

SO WE'RE, THERE'S A DOLLAR AMOUNT TODAY, BUT YOU CAN ESTIMATE WHAT IT MIGHT BE IN THREE YEARS, TWO YEARS AHEAD.

SO THAT'S PART OF THE CONVERSATION AND THE COST ESTIMATING WE'RE WORKING WITH RIGHT NOW, TOO.

OKAY. AND.

IT SOUNDS LIKE FOR OUR DECEMBER MEETING THAT YOU'LL LIKELY HAVE MORE OF AN UPDATE.

IT DOESN'T SOUND LIKE WE'LL HAVE WHAT YOU WERE SAYING.

A PACKAGE WITH A BOW READY FOR US IN DECEMBER JUST YET.

YOU KNOW, IT'D BE NICE TO BE ABLE TO PUT THAT PACKAGE WITH THE BOW UNDERNEATH THE TREE AT CHRISTMASTIME HOLIDAY SEASON.

BUT WE WON'T BE THERE YET.

OKAY. CAN CAN YOU GIVE US ALL SOME FRAME OF REFERENCE AS TO WHEN WE COULD EXPECT THAT? BECAUSE I KNOW AND I KNOW WE WERE ALL TRYING.

I HEAR IT FROM EVERYBODY.

I, I THINK FOR US AS REPRESENTATIVES TO THE PEOPLE, WE REALLY WANT TO GET TO THAT RESOLUTION.

AND, YOU KNOW, OBVIOUSLY WE'VE WE'VE I THINK WE'VE ALL SHARED WHERE WE'RE AT AND I THINK WE ALL ARE SIMILARLY WANTING TO GET TO THAT RESOLUTION.

SO FROM THAT PERSPECTIVE, JUST CURIOUS IF WE CAN HEAR FROM ALL PARTIES, IF WE CAN AT LEAST COMMIT TO THE FIRST QUARTER, BECAUSE I DO THINK THAT FROM THAT ONWARDS, THEN THAT STARTS THAT TWO YEAR TIMELINE THAT WE'RE TALKING ABOUT IN TERMS OF THAT PLAN THAT YOU ALL HAVE TO WORK OUT, THEN, YOU KNOW, PROVIDE AND THEN THEY HAVE TO PROCESS. SO AGAIN, THAT TWO YEAR TICKING MARK STARTS WHENEVER WE ACTUALLY CAN GET TO THAT RESOLUTION.

YES. SO IT'S.

IT'S KIND OF THAT WHEN DO WE THROW IN THE TOWEL AND, YOU KNOW, ACCEPT THE 10 MILLION, GIVE UP THAT THERE'S ANY ALTERNATIVE? WE STILL FEEL CONFIDENT THAT WE CAN REACH AN AGREEMENT AND PROBABLY A MORE APPROPRIATE TIMEFRAME THAN DECEMBER 13, MIGHT BE IN FEBRUARY TO COME BACK TO THE COUNCIL WITH STATUS AND HOPEFULLY THE DEAL BY THEN AS WELL.

WOW. A VALENTINE'S TIMES DAY GIFT.

YES. OK.

THOSE ARE ALL MY QUESTIONS.

I JUST HAVE COMMENTS. THANK YOU.

MR. BLACKBURN QUESTIONS.

JUST A QUICK COMMENT AND I HAVE A COMMENT AND A QUESTION ALSO.

BUT GO AHEAD. JUST A QUICK COMMENT JUST TO ASK SDG&E.

WE'VE BEEN VERY FRUSTRATED.

WE THINK IT'S TAKEN A LONG TIME.

WE'RE NOT GETTING WHAT WE HOPE TO GET.

BUT WITH THAT SAID, I THINK IT'S ALSO FAIR FOR ME TO SAY WHEN POWER GOES OUT, MINUTES SEEM LIKE HOURS, BUT I'VE BEEN VERY IMPRESSED WITH HOW QUICKLY YOUR STAFF GETS OUT THERE WITH THE PROPER EQUIPMENT AND GETS THESE INTERRUPTIONS RESOLVED REMARKABLY FAST.

CONSIDERING THE AMOUNT OF ACREAGE OR SQUARE MILES YOU HAVE TO COVER.

[01:15:03]

SO FOR THAT, THANK YOU.

OKAY. AND MY ONLY THOUGHTS ON THIS ARE YOU HAVE THE BLUE SQUARE AND YOU HAVE THE THE YELLOW CHECKER MARKS.

JUST THINKING NEXT STEPS IN THIS.

IN ORDER FOR THIS PROJECT TO HAVE REAL VIABILITY, WE NEED TO TRY AND USE THE YELLOW FRAMEWORK.

OTHERWISE, WE WILL NOT BE ABLE TO GET ENOUGH INGRESS AND EGRESS IN AND OUT OF THAT SITE TO GET IT TO ITS FULL POTENTIAL.

AND I UNDERSTAND THESE PROJECTS TAKE A LONG PERIOD OF TIME.

NONE OF THEM EVER ARE SHORT.

AND I MEAN, THE DEVELOPMENT OF THIS SITE IS STILL A LONG, LONG RANGE PLAN.

AND THIS IS JUST STEP ONE OF THAT PLAN.

SO I APPRECIATE, AGAIN, THE DETAIL YOU WENT INTO.

I MEAN, OBVIOUSLY, I WAS A STRONG SUPPORTER OF LOT 11, BUT I UNDERSTAND THE TIMING AND THE ENVIRONMENTAL AND SO ON AND SO FORTH.

I MEAN, THAT COULD LITERALLY ADD YEARS TO WHAT WE'RE TRYING TO DO.

SO I'M IN AGREEMENT WITH WHAT YOU'RE PROPOSING FOR BURIAL, BUT I'D I'D PREFER THE YELLOW CONFIGURATION IF, IF AT ALL POSSIBLE.

SO. SO WITH THAT, MR. BLACKMER. OH, I'M SORRY.

GO AHEAD. THANK YOU.

I TRIED TO RESERVE MY COMMENTS AND JUST FOCUS ON QUESTIONS EARLIER, SO I JUST WANTED TO SHARE MY COMMENTS AT THIS TIME AND AND ALSO SAY THAT I APPRECIATE THE COMMENTS THAT WERE MADE BY THE OTHER PARTIES, BY SDG&E AND NRG.

AND BOTH SPEAKERS USE THE WORD DILIGENCE THAT THEY ARE WORKING DILIGENTLY, THOROUGHLY AND WITH FREQUENCY OFTEN TO TRY TO MOVE FORWARD WITH THIS.

SO I APPRECIATE THE WORK OF OF THOSE OTHER PARTIES IN MY QUESTIONS.

I WAS TRYING TO GET AT THE IDEA THAT IT HASN'T ALWAYS BEEN LIKE THIS.

I THINK TOWARDS THE EARLIER PART OF THE SETTLEMENT AGREEMENT PERIOD, WE FORGOT OR DIDN'T WORK VERY FREQUENTLY TOGETHER AND WE ARE NOW AND THIS COUNCIL AND I THINK THE NEXT COUNCIL, BECAUSE MOST OF US ARE THE SAME, WILL WILL ALSO HAVE THIS DESIRE TO CONTINUE WORKING AND GET THIS RESOLVED FOR THE COMMUNITY.

AS COUNCILMEMBER BHAT-PATEL SAID, CERTAINLY THE COMMUNITY IS TIRED AND FRUSTRATED AND WANTS TO SEE A RESOLUTION.

SO I FEEL THE SAME AND I REALLY APPRECIATE THE HARD WORK OF EVERYONE COMING TOGETHER TO MAKE THAT HAPPEN.

SO I ALSO WANTED TO COMMENT ON MAYOR HALL'S LAST COMMENT WHERE HE SAID THE YELLOW LINES ARE THE MOST IMPORTANT.

THE BLUE LINES JUST DON'T.

THAT'S A NO GO. IT'S GOT TO BE THE YELLOW LINES.

IN ORDER FOR US TO HAVE USABLE LAND, HAVE THE INGRESS AND EGRESS.

OTHERWISE, I THINK WE TALKED ABOUT LAST TIME.

IT'S JUST KIND OF LIKE WE SHOULD TAKE THE 10 MILLION BECAUSE THAT'S JUST NOT ENOUGH LAND TO DO ANYTHING WITH.

SO ANYWAY, THANK YOU FOR YOUR HARD WORK, MR. BARBERIO AS WELL, AND ALL THE STAFF, THE CITY ATTORNEY'S OFFICE AS WELL.

THANKS. AND I WOULD LIKE JUST, YOU KNOW, STAFF IS ASKING FOR A CONTINUANCE OF TIME.

I WOULD LIKE TO SUGGEST THE FIRST MEETING IN MARCH.

AND UNLESS THEY COME TO US QUICKER WHERE THEY CAN SAY, HEY, WE CAN BEAT THE DEADLINE, BUT THAT SHOULD GIVE THEM MORE THAN AMPLE TIME TO GET IT DONE WITHOUT ANY EXCUSES. SO UNLESS SOMEBODY ELSE HAS.

I WAS PREPARED TO, RATHER THAN SAY IN MARCH, JUST TO PREPARE TO SAY A STAFF AGENDA IS THAT WHEN YOU HAVE SOMETHING TO REPORT.

I WOULD RATHER HAVE A DEADLINE MYSELF.

OKAY. WHAT'S THE DATE? I WAS GOING TO SAY THE STAFF WAS SAYING MARCH 7TH, AND PERHAPS THEY CAN DO IT SOONER.

BUT MARCH 7TH IS WHAT? I'LL ADD THAT TO MY MOTION.

READY FOR A MOTION? YES, SIR.

OKAY. OKAY.

OK. THANK YOU.

AND I TOO HAD RESERVED MY COMMENTS FOR NOW.

SO I JUST WANT TO SAY THANK YOU TO ALL PARTIES THAT ARE HERE AND FOR, YOU KNOW, DEFINITELY WORKING WITH US ON THIS.

I KNOW THAT WE'RE UP HERE, WE'RE PUTTING YOUR FEET TO THE FIRE.

BUT THAT'S, OF COURSE, REALLY JUST BECAUSE WE WANT TO MAKE SURE THAT WE'RE GETTING TO THAT RESOLUTION THAT I KNOW WE ALL WANT TO GET TO.

AND I THINK AS REPRESENTATIVES, THAT'S OUR JOB TO MAKE SURE THAT WE'RE GETTING THERE.

SO WE REALLY APPRECIATE YOU ALL DILIGENTLY WORKING TOWARDS THIS.

WE DO LOOK FORWARD TO HOPEFULLY IN THAT FIRST QUARTER HAVING THAT RESOLUTION.

I THINK FOR MYSELF, YOU KNOW, I WAS HOPING IT WAS GOING TO BE DECEMBER THAT WE WOULD HAVE THAT.

AND I'M HEARING FROM EVERYONE THAT WE ARE ALMOST THERE.

SO I THINK HAVING THAT TIME CERTAIN DEFINITELY TO BE ABLE TO SAY THIS IS WHEN WE WILL HAVE THAT RESOLUTION, WHETHER IT'S MARCH 7TH OR IF YOU CAN DO IT SOONER, BELIEVE ME, WE WILL BE VERY HAPPY.

BUT I REALLY WANT TO JUST EMPHASIZE THAT WE'RE GOING INTO THE NINTH YEAR POST SETTLEMENT AGREEMENT.

AND I THINK JUST BEING ABLE TO SAY JUST A LITTLE OVER THAT TEN YEAR MARK WE WERE ABLE TO GET IT DONE WILL BE, I THINK, GRATIFYING FOR EVERYONE.

[01:20:05]

SO REALLY APPRECIATE EVERYONE'S WORK BEING DONE ON THAT.

AND AGAIN, I CANNOT EMPHASIZE ENOUGH WE LOOK FORWARD TO CONTINUING TO WORK ON THIS AND GETTING IT TO A RESOLUTION.

THANKS. MR. BLACKBURN. SORRY, MR. BLACKBURN, WHEN YOU MAKE YOUR MOTION, IF YOU COULD SAY WHEN YOU SAY MARCH 7TH OR SOONER.

OKAY, GREAT. THANKS.

ARE WE READY? OKAY.

REGARDING AGENDA ITEM NUMBER 13, MOVE STAFF RECOMMENDATION TO DISCONTINUE CONSIDERATION OF LOT 11 AND TO REAGENDIZE THIS ON MARCH 7TH OR SOONER.

SECOND, PLEASE VOTE.

OK. THANK YOU.

WELL DONE. SO MOVING ON TO ITEM 14, LOCAL ROADWAY SAFETY PLAN.

[14. LOCAL ROADWAY SAFETY PLAN]

ASSISTANT CITY MANAGER. YOU WANT TO MAKE THE.

THANK YOU, MAYOR. I'D LIKE TO INVITE THE CITY TRAFFIC ENGINEER, JOHN KIM FOR THE PRESENTATION.

THANK YOU AGAIN. GOOD EVENING, MAYOR.

MAYOR PRO TEM.

COUNCIL MEMBERS.

JOHN KIM, CITY TRAFFIC ENGINEER.

AND YOU WANT TO COME UP HERE.

ALSO WITH ME IS ANDREW PRESCOTT FROM CR ASSOCIATES.

STAFF IS REQUESTING THAT THE CITY COUNCIL ADOPT THE CITY OF CARLSBAD LOCAL ROADWAY SAFETY PLAN, THE LOCAL ROADWAY SAFETY PLAN, OR OTHERWISE KNOWN AS THE LRSP, IS A DATA DRIVEN TRAFFIC SAFETY PLAN.

IN 2019, CALTRANS ANNOUNCED THAT AGENCIES NEED TO HAVE AN LRSP IN PLACE IN ORDER TO QUALIFY FOR FUTURE HIGHWAY SAFETY IMPROVEMENT PROGRAM GRANTS.

SO IN 2020, WE RECEIVED A $72,000 GRANT FROM CALTRANS AND BROUGHT ABOARD SEE OUR ASSOCIATES TO HELP PREPARE THE LRSP.

WHAT IS AN LRSP? IT IS A DATA DRIVEN ANALYSIS.

IT PROVIDES THE FRAMEWORK TO IDENTIFY, ANALYZE AND PRIORITIZE ROADWAY SAFETY IMPROVEMENTS TO REDUCE FATALITIES AND SERIOUS INJURIES ON OUR ROADWAY NETWORK.

IT'S ALSO A LIVING DOCUMENT THAT IS INTENDED TO BE PERIODICALLY REVIEWED AND UPDATE TO REFLECT LOCAL NEEDS AND PRIORITIES.

THIS IS A LOOK AT THE TIMELINE FOR THE PROJECT STARTED IN 2020 WHEN WE RECEIVED THE GRANT IN SEPTEMBER OF 2022.

THE DRAFT LRSP WAS PRESENTED TO THE TRAFFIC AND MOBILITY COMMISSION.

THE CARLSBAD LRSP LOOKED AT DATA FROM 2015 TO 2019, INCLUDING COLLISION STATISTICS FOR VEHICLES, BICYCLES AND PEDESTRIANS. IT EXCLUDED DATA FROM 2020 DUE TO ANOMALIES IN TRAFFIC AND TRAVEL PATTERNS CAUSED BY THE COVID 19 PANDEMIC AND TRAVEL SHUTDOWN.

LOOKING AT COLLISION STATISTICS FOR VEHICLES, BIKES AND PEDESTRIANS.

THE PLAN IDENTIFIED COLLISION PATTERNS AND ROADWAY SAFETY TRENDS THROUGHOUT THE CITY AND RECOMMENDED IMPROVEMENTS TO ADDRESS IDENTIFIED NEEDS.

THE LRSP EFFORT ALSO SAW INPUT FROM A VARIETY OF STAKEHOLDERS, INCLUDING OTHER CITY DEPARTMENTS, LOCAL SCHOOL DISTRICTS, NORTH COUNTY TRANSIT DISTRICT AND TRANSPORTATION ADVOCACY GROUPS.

THE LRSP IDENTIFIED AREAS OF POTENTIAL ENHANCEMENTS BASED ON COLLISION DATA.

SOME IMPORTANT FACTORS FOR PEDESTRIANS INCLUDE DRIVERS FAILING TO YIELD TO PEDESTRIANS WITHIN CROSSWALKS AND PEDESTRIANS FAILING TO YIELD TO DRIVERS OUTSIDE OF CROSSWALKS.

IMPORTANT FACTORS FOR BIKES INCLUDED DRIVERS FAILING TO YIELD TO BIKES WHILE MAKING A RIGHT TURN, AND THIS IS ALSO KNOWN AS A RIGHT HOOK CONDITION.

UNSAFE SPEED AND AN INCREASE IN E-BIKE USAGE.

IMPORTANT FACTORS FOR VEHICLES INCLUDE UNSAFE SPEED.

FAILURE TO STOP AT A LIMIT LINE.

DRIVING UNDER THE INFLUENCE RIGHT ANGLE COLLISIONS AT INTERSECTIONS AND REAR END COLLISIONS APPROACHING INTERSECTIONS.

SAFETY IMPROVEMENT RECOMMENDATIONS FOLLOW THE THREE E APPROACH TO OF EDUCATION, ENGINEERING AND ENFORCEMENT.

SAFETY IMPROVEMENT. RECOMMENDATIONS FOR EDUCATION AND ENFORCEMENT INCLUDE SAFE ROUTES TO SCHOOL PROGRAM, BICYCLE EDUCATION COURSES, TARGETED ENFORCEMENT AND TRACKING E-BIKE COLLISIONS.

SAFETY IMPROVEMENT RECOMMENDATIONS FOR ENGINEERING INCLUDE CITY WIDE RECOMMENDATIONS AS WELL AS LOCATION SPECIFIC BASED ON DATA.

[01:25:08]

HERE'S AN EXAMPLE OF SOME OF THE ENGINEERING RECOMMENDATIONS, INCLUDING RECTANGULAR, RAPID FLASHING BEACONS FOR CROSSWALKS, HIGH VISIBILITY CROSSWALK MARKINGS, REFLECTIVE BACK PLATES ON TRAFFIC SIGNAL INDICATIONS, GREEN PAINT AND BIKE LANE CONFLICT AREAS, RED LIGHT INDICATORS TO ASSIST THE POLICE DEPARTMENT IN TICKETING RED LIGHT VIOLATIONS AND AN ALL RED PEDESTRIAN PHASE AT TRAFFIC SIGNALS.

HERE'S A LIST OF SOME LOCATION SPECIFIC SAFETY IMPROVEMENT RECOMMENDATIONS THAT ARE CONTAINED IN THE LRSP.

THE DECLARATION OF LOCAL EMERGENCY WAS ENACTED AFTER THE LRSP WAS SCOPED AND DEVELOPED.

TRAFFIC SAFETY IMPROVEMENTS THAT WERE IDENTIFIED AS PART OF THE EMERGENCY RESPONSE WERE BASED ON MORE RECENT BIKE COLLISIONS FROM 2019 TO 2022, BUT ARE IN LINE WITH THE MITIGATION STRATEGY IDENTIFIED IN THE LRSP.

THESE IMPROVEMENTS INCLUDE GREEN BIKE LANE ENHANCEMENTS AND CONFLICT AREAS, DEPLOYMENT OF SPEED FEEDBACK SIGNS AND ELECTRONIC MESSAGE BOARDS AND HIGH BIKE COLLISION AREAS, ENHANCING SIGNAL OPERATIONS TO PRIORITIZE THE PEDESTRIAN PHASE AND THE RESTRIPING OF TARGETED STREETS SUCH AS EAST WEST CORRIDORS.

AFTER ADOPTION, STAFF WILL SUBMIT THE LRSB TO CALTRANS AND WATCH FOR FUTURE HSIP GRANT OPPORTUNITIES.

THAT CONCLUDES STAFF PRESENTATION.

I'D BE HAPPY TO ANSWER QUESTIONS ALONG WITH ANY TECHNICAL QUESTIONS THAT MR. PRESCOTT WOULD BE ABLE TO ANSWER.

SPEAKERS. THERE ARE NO SPEAKERS MAYOR.

QUESTIONS. DON'T SEEM TO BE RAISING THEIR HAND.

THEN DO WE NEED A MOTION ON THIS? ADOPT RESOLUTION, ITEM 14, APPROVE ADOPTION OF THE RESOLUTION, CONTAIN AN AGENDA, ITEM NUMBER 14.

SECOND. PLEASE VOTE.

WELL DONE. THERE'S A LOT OF DATA IN HERE, TOO.

I MEAN, YOUR PRESENTATION IS VERY SHORT, BUT WE HAVE ALMOST AN INCH OF DATA TO SUPPORT WHAT YOU'VE SAID.

SO VERY WELL DONE.

OKAY. MOVING ON TO ITEM 15, ECONOMIC AND FINANCIAL UPDATE FOR THE FIRST QUARTER OF THE FISCAL YEAR 2022-2023.

[15. ECONOMIC AND FINANCIAL UPDATE FOR THE FIRST QUARTER OF FISCAL YEAR 2022-23]

ASSISTANT CITY MANAGER.

YOU WANT TO MAKE THE INTRODUCTIONS? THANK YOU, MAYOR. I'D LIKE TO INVITE FINANCE DIRECTOR ZACH KORACH AND ECONOMIC DEVELOPMENT MANAGER MATT SANFORD.

THANK YOU, JEFF. GOOD EVENING, MAYOR AND COUNCIL MEMBERS.

MY NAME IS MATT SANFORD. I'M THE ECONOMIC DEVELOPMENT MANAGER FOR THE CITY.

THIS EVENING WE WILL BE PROVIDING..

AND MATT, IF YOU COULD SPEAK TO THAT MIC, FOR SOME REASON, THAT ONE JUST SEEMS AWFUL WEAK, NO MATTER WHO THE PRESENTER IS.

SO. YES, SIR. THIS EVENING WE WILL BE PROVIDING THE QUARTERLY ECONOMIC AND FINANCIAL UPDATE FOR Q ONE.

THIS ECONOMIC SCAN COVERS THE MONTHS OF JULY THROUGH SEPTEMBER 2022, AND IT PROVIDES CONTEXT AT A GLOBAL, REGIONAL AND LOCAL LEVEL.

WE HAVE HEARD FROM BUSINESSES, INCLUDING CARLSBAD BUSINESSES THAT INCREASED FUEL PRICES ARE IMPACTING WHOLESALE COSTS ON GOODS.

SUPPLY CHAIN KETCHUP HAS LED TO GOOD SURPLUSES IN SOME INDUSTRIES, WHILE DELAYS STILL MEAN SHORTFALLS IN OTHERS.

ALSO, GLOBAL SEMICONDUCTOR SHORTAGE CONTINUES TO DELAY TECH PRODUCTS, ALL WHICH HAS AN IMPACT HERE IN CARLSBAD.

ADDITIONALLY, COSTS ARE RISING.

INFLATION CONTINUES TO BE A PROBLEM.

THERE ARE SEVERAL DRIVERS OF INFLATION, INCLUDING SOME OF THE GLOBAL DISRUPTIONS THAT WE'VE DISCUSSED.

IN SAN DIEGO, PRICES ARE UP 8.2% YEAR OVER YEAR.

THE FEDERAL RESERVE, OF COURSE, CONTINUES TO TAKE ACTION TO COUNTER INFLATION, STEADILY INCREASING INTEREST RATES, INCLUDING A THREE QUARTER POINT RATE INCREASE IN OCTOBER.

AND THEY HAVE SIGNALED A COMMITMENT TO CONTINUE RATE HIKES UNTIL INFLATION IS CURBED.

SOME GOOD NEWS. CARLSBAD UNEMPLOYMENT WAS 2.7% IN SEPTEMBER, WHICH IS 0.2% BELOW PRE-PANDEMIC LEVELS.

NATIONALLY, OCTOBER JOBS DEMAND EXCEEDED EXPECTATIONS.

MANY BUSINESSES HAVE HAD CHALLENGES RETAINING WORKERS AS THEY PURSUE OTHER JOBS WITH BETTER WAGES.

ENTRY LEVEL JOBS HAVE PROVEN DIFFICULT TO FILL STILL, AND THERE IS PRESSURE TO INCREASE WAGES, WHICH COULD FURTHER INFLATE PRICES.

THERE HAVE BEEN MAJOR ANNOUNCEMENTS OF LAYOFFS WITHIN THE TECH SECTOR RECENTLY, BUT THAT MAY BE A RIGHT SIZING OF PANDEMIC ERA HIRING AND RETENTION OF EMPLOYEES.

WE HAVE NOTED THAT RETAILERS ARE PROJECTING LOWER SEASONAL HIRING FOR THE HOLIDAYS.

[01:30:03]

NATIONALLY, REAL GDP INCREASED AT AN ANNUAL RATE OF 2.6% IN THE THIRD QUARTER OF 2022, WHICH IS A GOOD SIGN IN CONTRAST TO A DECREASE OF 0.6% IN THE SECOND QUARTER.

THE INCREASE IN THE THIRD QUARTER PRIMARILY REFLECTED INCREASES IN EXPORTS AND CONSUMER SPENDING THAT WERE PARTLY OFFSET BY A DECREASE IN HOUSING INVESTMENT.

AND THEN JUST AS A REMINDER, LOCALLY, CARLSBAD'S GROSS REGIONAL PRODUCT IS $14.6 BILLION AND IS THE SECOND LARGEST GRP IN THE COUNTY BEHIND THE CITY OF SAN DIEGO.

OUR ECONOMY GREW BY APPROXIMATELY $1 BILLION BETWEEN 2020 AND 2021.

HERE IN CARLSBAD, THERE WERE 15,217 UNIQUE JOB POSTINGS BETWEEN JULY AND SEPTEMBER.

THIS IS ACTUALLY A SLIGHT DECREASE FROM THE PREVIOUS QUARTER IN THE FIRST QUARTERLY DECREASE IN THE PAST TEN QUARTERS.

THE MEDIAN ADVERTISED SALARY FOR THOSE POSTINGS WAS $45,700, WHICH IS ON AVERAGE $1000 MORE THAN JOBS POSTED IN THE PREVIOUS QUARTER.

OF JOBS POSTED, 66% INDICATED A NEEDED EDUCATION OF HIGH SCHOOL OR GED OR LESS.

THIS IS REPRESENTATIVE OF A NUMBER OF ENTRY LEVEL JOBS BEING OPEN AND EMPLOYERS OFFERING HIGHER WAGES TO BE COMPETITIVE.

CARLSBAD EMPLOYERS HAVE CITED CHALLENGES IN FINDING AND HIRING ENTRY LEVEL WORKERS, ESPECIALLY FRONTLINE SERVICE WORKERS.

THIS HAS LIMITED SOME INDUSTRIES GROWTH.

LOOKING AT COMMERCIAL REAL ESTATE, OFFICE AND INDUSTRIAL VACANCIES IN CARLSBAD ARE BOTH WELL BELOW PRE-PANDEMIC LEVELS, WHICH IS A GOOD SIGN.

COMMERCIAL REAL ESTATE REPRESENTATIVES HAVE NOTED DIFFICULTY IN FINDING SPACE FOR THEIR CLIENTS HERE IN CARLSBAD.

RETAIL VACANCY RATES ARE IMPROVING BUT HAVE NOT YET CAUGHT UP TO PRE-PANDEMIC LEVELS.

AND THEN ON AVERAGE, MARKET RENT PER SQUARE FOOT PER YEAR HAS COOLED SLIGHTLY IN RETAIL, WHICH IS NOW AT $42.51 PER SQUARE FOOT.

OFFICE SPACE IS CURRENTLY AT AN AVERAGE OF $38.06, AND THAT'S CLIMBED THE PAST FOUR QUARTERS.

INDUSTRIAL SPACE, WHICH CONSISTENTLY CLIMBED DURING THE PANDEMIC, IS NOW AT $21 PER SQUARE FOOT ON AVERAGE IN CARLSBAD.

HOME VALUES IN CARLSBAD, ALONG WITH THE STATE, ALONG WITH THE REST OF SAN DIEGO COUNTY, COOLED IN THE PREVIOUS QUARTER, DROPPING FOR THE FIRST TIME IN THE PAST THREE YEARS.

THIS VALUE IS SEASONALLY ADJUSTED AND ONLY INCLUDES THE MIDDLE PRICE TIER OF HOMES.

CARLSBAD HOME VALUES HAVE RISEN 18% ON AVERAGE OVER THE PAST YEAR.

THE COOLING OF HOUSING PRICES IS LIKELY THE RESULT OF INCREASING INTEREST RATES AS SUPPLY REMAINS CONSTRAINED.

THROUGHOUT 2022 HOTEL OCCUPANCY MORE CLOSELY MATCHED 2019 LEVELS, WHICH WE CONSIDER TO BE A NORMAL YEAR.

HOWEVER, 2022 SUMMER PEAK LAGGED 2019 LEVELS SLIGHTLY.

OCCUPANCY DID CATCH UP IN SEPTEMBER AND WAS 2% HIGHER THAN THE SAME MONTH IN 2019.

THE IMPACTS OF INFLATION AND A POTENTIAL RECESSION COULD HAMPER TOURISM GLOBALLY, BUT CARLSBAD IS WELL POSITIONED AS A DESTINATION THAT COULD SEE STRONG TOURISM EVEN THROUGH A RECESSION. BASELINE COMPARISON, OF COURSE, IS 2019 AS IT REPRESENTS NORMAL CONDITIONS.

CARLSBAD'S AVERAGE DAILY ROOM RATE OR ADR, REMAINS HIGHER THAN PRE-PANDEMIC LEVELS, DESPITE LOWER SUMMER OCCUPANCY NUMBERS.

ADR WAS $303.68 IN JULY, $264.30 IN AUGUST, AND $220.87 IN SEPTEMBER.

THERE WERE A TOTAL OF 2308 BUSINESS LICENSES ISSUED LAST QUARTER, INCLUDING 1019 NON RESIDENTIAL, 559 RESIDENTIAL AND 730 OUTSIDE THE CITY LICENSES.

THAT'S AN INCREASE OF 239 OVER THE SAME QUARTER OF 2021.

BETWEEN JULY AND SEPTEMBER, PERMIT ACTIVITY INCREASED FOR RESIDENTIAL BUILDING PERMITS AT 1220 AND REPRESENT THE REPRESENTED THE LARGEST NUMBER OF RESIDENTIAL PERMITS IN THE PAST THREE YEARS.

COMMERCIAL PERMITS ISSUED WERE AT 99, DOWN SLIGHTLY FROM THE LAST QUARTER.

THE NUMBER OF RESIDENTIAL BUILDING PERMITS ISSUES HAS BEEN GENERALLY INCREASING OVER THE PAST SEVERAL YEARS.

KEY TAKEAWAYS.

A RECESSION MAY BE LOOMING, BUT OUR CARLSBAD ECONOMY REMAINS IN A STRONG POSITION.

GLOBAL PRESSURES EXCUSE ME, LIKE SUPPLY CHAIN ISSUES AND RISING COSTS ARE HAVING AN IMPACT AND ARE A WARNING SIGN OF INSTABILITY.

WORKFORCE ISSUES, ESPECIALLY IN ENTRY LEVEL AND LOW SKILLED FIELDS, ARE HAMPERING SOME BUSINESSES GROWTH.

HOWEVER, STAFF IS KEEPING ITS OR WE ARE KEEPING OUR FINGERS ON THE PULSE OF WHAT'S HAPPENING LOCALLY AND GLOBALLY.

AND WE WILL OF COURSE CONTINUE TO PROVIDE UPDATES AND PUBLISH THE QUARTERLY ECONOMIC SCAN WHICH PROVIDES FURTHER CONTEXT.

AND NOW I'LL TURN IT OVER TO THE CITY'S FINANCE DIRECTOR, ZACH KORACH.

GREAT. THANK YOU, MATT.

GOOD EVENING, MAYOR. MAYOR PRO TEM, COUNCIL MEMBERS.

I'M ZACK KORACH, FINANCE DIRECTOR, AND WE WILL JUMP RIGHT INTO THE GENERAL FUND REVENUES.

[01:35:04]

AGAIN, WE'RE LOOKING AT THE FIRST THREE MONTHS OF THE CURRENT FISCAL YEAR TO PROVIDE A LITTLE BIT OF CONTEXT AS TO WHAT WE'RE LOOKING AT.

THE FIRST ORANGE COLUMN REPRESENTS THE FIRST THREE MONTHS OF ACTUAL GENERAL FUND REVENUES LAST YEAR.

THE SECOND GREEN COLUMN REPRESENTS WHAT WE EXPECTED TO RECEIVE IN THE FIRST THREE MONTHS THIS YEAR.

AND THEN LASTLY, THE THIRD BLUE COLUMN REPRESENTS WHAT WE ACTUALLY RECEIVED IN THE FIRST THREE MONTHS THIS YEAR.

AND LOOKING AT THE CHART, AND IF WE'RE JUST LOOKING AT THAT BLUE COLUMN COMPARATIVELY, IT'S BEEN A POSITIVE QUARTER.

WE HAVE EXCEEDED NOT ONLY LAST YEAR'S FIRST THREE MONTHS OF ACTUALS, BUT ALSO WHAT WE EXPECTED TO RECEIVE IN THE FIRST THREE MONTHS THIS YEAR.

AND THAT APPLIES ACROSS THE BOARD WITH THE EXCEPTION OF OTHER TAXES THAT CONSISTS PRIMARILY OF BUSINESS LICENSE TAXES.

WE SAW AN UPTICK IN BUSINESS LICENSE TAX REVENUES LAST YEAR DUE TO AN INCREASE IN LATE PAYMENT FEES OR PENALTIES THAT WERE RESULTING FROM COVID 19.

SO LOOKING AT THE GENERAL FUND REVENUES IN MORE DETAIL, WE ARE COMPARING THE FIRST THREE MONTHS OF ACTUALS YEAR OVER YEAR.

AND AGAIN, WE'RE GOING TO BE FOCUSING ON THIS PARTICULAR SLIDE ON THE FIRST THREE CATEGORIES.

WE REFER TO THESE AS THE BIG THREE, PROPERTY TAX, SALES TAX AND TRANSIENT OCCUPANCY TAX, ALSO COMMONLY REFERRED TO AS HOTEL TAX.

WE FOCUS ON THESE THREE CATEGORIES BECAUSE TOGETHER THEY COMPRISE OVER 80% OF THE GENERAL FUND'S REVENUES.

STARTING FIRST WITH PROPERTY TAX.

QUARTER OVER QUARTER.

CURRENT FISCAL YEAR. COMPARED TO LAST FISCAL YEAR, WE SAW AN INCREASE OF $800,000 OR 32%, AND THAT WAS PREDOMINANTLY RESULTING FROM AN INCREASE IN AIRCRAFT TAXES.

WE SAW A DOWNWARD TREND OVER THE LAST TWO YEARS IN AIRCRAFT TAXES, AND THAT HAS SINCE PICKED UP.

SALES TAX REVENUES HAVE INCREASED BY $700,000 OR 5%.

AND I WANT TO TAKE A LITTLE BIT MORE TIME TO TALK ABOUT SALES TAX.

NOT ONLY IS IT THE SECOND LARGEST GENERAL FUND REVENUE SOURCE, BUT IT IS ALSO HIGHLY SENSITIVE TO ECONOMIC TRENDS INDICATORS AND ALSO HAS A LOT OF INHERENT VOLATILITY THAT COMES WITH IT.

DURING THE DEVELOPMENT OF THE FISCAL YEAR 22-23 ADOPTED BUDGET.

THE CITY HAD APPLIED VERY CONSERVATIVE ESTIMATES WITH ITS SALES TAX.

IN FACT, IT WAS FORECASTED TO ACTUALLY DECREASE THE AMOUNT OF SALES TAX RECEIVED THIS FISCAL YEAR COMPARED TO LAST FISCAL YEAR.

WHAT WE ACTUALLY EXPERIENCED IN THE FIRST THREE MONTHS IS QUITE DIFFERENT.

WE HAD INITIALLY ANTICIPATED A REDUCTION DUE TO LINGERING SIGNIFICANTLY HIGH INFLATION LEVELS.

AND WHAT WE SAW DURING THE FIRST THREE MONTHS IS THAT RISING AND SUSTAINED LEVELS OF INFLATION ACTUALLY SERVED AS A BOOST FOR SALES TAX REVENUES, WHERE WE HAD INITIALLY THOUGHT THAT FOLKS AS PURCHASING POWER WOULD BE REDUCED.

WE THINK THAT SAVINGS THROUGHOUT THE PANDEMIC HAD SERVED AS A BIT OF A BUFFER TO BACKFILL THE INCREASED PENT UP DEMAND THAT LINGERED THROUGH THE FIRST THREE MONTHS OF THE FISCAL YEAR. THAT SAID, WHILE THIS IS VERY GOOD NEWS, FOR THE FIRST THREE MONTHS, THE LEVEL OF UNCERTAINTY CONTINUES TO GROW.

AS WE MOVE FORWARD, LEVELS OF INFLATION CONTINUE TO SUSTAIN IT AT HIGH LEVELS.

IT'S NOT TO SAY THAT FUTURE QUARTERLY REPORTS OUT TO CITY COUNCIL ARE GOING TO LOOK AS POSITIVE AS THIS.

SO WE ARE CERTAINLY TAKING A CAUTIOUSLY OPTIMISTIC APPROACH.

NEXT IS TRANSIENT OCCUPANCY TAX, $1.6 MILLION INCREASE OR 16%.

AND AS MATT HAD TOUCHED UPON AND DURING HIS PORTION OF THE PRESENTATION, MUCH OF THIS IS DRIVEN BY THE ADR, THE AVERAGE DAILY ROOM RATE THAT INCREASED YEAR OVER YEAR.

IN TOTAL WITHIN THE GENERAL FUND.

WE'RE LOOKING AT A THREE AND A HALF MILLION DOLLAR INCREASE COMPARED TO THE SAME PERIOD LAST YEAR OR A 10% INCREASE.

NOW, FLIPPING TO THE OTHER SIDE OF THE LEDGER, THE GENERAL FUND BUDGET.

IT WAS ADOPTED IN JUNE OF 2022 AT $198.4 MILLION, AND IT CURRENTLY HAS A WORKING BUDGET OF $223.7 MILLION.

WHAT COMPRISES THAT $25 MILLION? TWO MAIN THINGS.

FIRST IS CARRY FORWARD ENCUMBRANCES, ANY OUTSTANDING PURCHASE ORDERS OR COMMITMENTS TO SPEND AS OF JUNE 30 OF LAST YEAR ARE CARRIED FORWARD INTO THE THE SUBSEQUENT FISCAL YEAR.

ALSO CARRY FORWARD APPROPRIATIONS.

ANY UNSPENT BUDGET IS SUBMITTED FOR BOTH THE CITY MANAGER AND THE CITY COUNCIL FOR THEIR RESPECTIVE REVIEW AND APPROVAL AND IS ULTIMATELY CARRIED FORWARD TO THE SUBSEQUENT YEAR. SO AS OF SEPTEMBER 30TH, 2022, THERE'S AN AVAILABLE BUDGET REMAINING OF $144 MILLION OR 63%.

AND IT IS IMPORTANT TO NOTE THAT INCLUDES BOTH THE ACTUAL EXPENDITURES THROUGHOUT THE FIRST THREE MONTHS AS WELL AS ANY OUTSTANDING OR OPEN PURCHASE ORDERS.

[01:40:04]

SO HERE WE'RE LOOKING AT GENERAL FUND EXPENDITURES AND ENCUMBRANCES.

THE FIRST ORANGE COLUMN REPRESENTS THE GENERAL FUND BUDGET AND IN TOTAL, $223 MILLION WORKING BUDGET.

THE SECOND GREEN COLUMN REPRESENTS THE FIRST QUARTER OF ACTUALS LAST YEAR, AND THE THIRD AND FINAL BLUE COLUMN REPRESENTS THE FIRST QUARTERS OF ACTUAL EXPENDITURES AND ENCUMBRANCES.

AS WE CAN SEE, WE ARE TRENDING RELATIVELY CONSISTENT YEAR OVER YEAR WHEN WE LOOK AT PERSONNEL.

IT IS NATURAL TO SEE A SLIGHT INCREASE VIA NEGOTIATED SALARY INCREASES AND THEN FIXED INCREASES RELATED TO CALPERS RETIREMENT COSTS AND HEALTH RATE INCREASES.

MAINTENANCE AND OPERATIONS YEAR OVER YEAR WILL GENERALLY SEE THAT TREND MORE CONSISTENTLY AND TRANSFERS OUT.

WE'LL SEE A BIT MORE FLUCTUATION DEPENDING ON STAFF RECOMMENDATIONS AND CITY COUNCIL APPROVAL ON YEAR END GENERAL FUND SURPLUS AND IT USES OF THOSE FUNDS.

HERE WE HAVE THE SAME INFORMATION, BUT THIS TIME PRESENTED NUMERICALLY.

AGAIN, LOOKING AT THE PRIMARY DIFFERENCE ON THIS SLIDE IS WE HAVE THE OPPORTUNITY TO SEE THE PERCENT OF BUDGET THAT IS SPENT THAT DOES NOT INCLUDE THE EXPENSE OR THE OUTSTANDING PURCHASE ORDERS OR ENCUMBRANCES.

THIS PROVIDES A LITTLE BIT MORE OF A BETTER UNDERSTANDING OF HOW WE'RE TRACKING YEAR OVER YEAR.

SO IN RESPECT TO THE GENERAL FUNDS, ENTIRE WORKING BUDGET OF $223 MILLION, WE'VE ONLY ACTUALLY SPENT $60 MILLION.

THAT'S PREDOMINANTLY WITHIN PERSONNEL TRANSFERS AND MAINTENANCE AND OPERATIONS.

27% SPENT.

NOW MOVING OVER TO SOME OF THE CITY'S ENTERPRISE FUNDS WATER AND WASTEWATER.

COMPARED TO PRIOR YEAR AND AGAIN THROUGH THE FIRST QUARTER, WATER REVENUES WERE UP 1.8% AND EXPENSES ARE UP 5.8%.

THE INCREASE IN WATER REVENUES IS LARGELY DRIVEN BY AN INCREASE IN WATER RATES.

THAT'S SLIGHTLY OFFSET WITH THE DECREASE IN WATER VOLUME SALES.

AS FOR WASTEWATER REVENUES, THEY ARE UP 19 THREE, 19.3%, LARGELY DRIVEN BY RATE INCREASES, AND EXPENSES ARE UP 2.4%, MAINLY DRIVEN BY PERSONNEL COSTS.

LOOKING AT THE GOLF COURSES ENTERPRISE FUND, IT IS STILL CONTINUING TO PERFORM VERY STRONGLY.

SINCE THE ONSET OF THE PANDEMIC, DEMAND FOR GOLF AND OUTDOOR ACTIVITIES HAS FLOURISHED AND WE'RE STILL SEEING THOSE TRENDS CONTINUE EVEN AS WE WORK OUR WAY OUT OF THE PANDEMIC. NET INCOME THROUGH THE FIRST QUARTER OF THE FISCAL YEAR IS $60,000 HIGHER THAN LAST YEAR, WHICH IS A VERY POSITIVE SIGN CONSIDERING THE GOLF COURSE BROUGHT IN A RECORD AMOUNT OF REVENUE DURING FISCAL YEAR 21-22.

AND AGAIN, THIS HAS BEEN DRIVEN BY CONTINUED DEMAND FOR GOLF, AS WELL AS INCREASED DEMAND FOR BOTH FOOD AND BEVERAGE.

NOW, AS FOR THE NEXT STEPS, OF COURSE, STAFF WILL CONTINUE TO MONITOR REVENUES AND EXPENDITURES.

BOTH THE FINANCE GROUP AS WELL AS ECONOMIC DEVELOPMENT WILL BE PUBLISHING THEIR RESPECTIVE REPORTS ON THE CITY'S WEBSITE.

AND WE WILL NEXT BE BEFORE THE CITY COUNCIL IN FEBRUARY OF 2023 TO PRESENT THE MID-YEAR UPDATE.

AND WITH THAT, THAT WILL CONCLUDE OUR PRESENTATION.

WE'D BE HAPPY TO TAKE ANY QUESTIONS.

VERY WELL DONE. VERY WELL DONE.

JUST THANK YOU, SPEAKERS.

WE DO NOT HAVE ANY SPEAKERS.

THEN WE'LL GO RIGHT TO MR. NORBY. I APOLOGIZE FOR JUMPING THE GUN.

THANK YOU, MR. MAYOR.

COULD YOU PULL UP A SLIDE THAT SHOWS KIND OF OUR THREE MAIN REVENUE INCOME SOURCES, PROPERTY TAX, SALES TAX, AND TOT TAX.

AND IT'S A QUESTION THIS IS REALLY FOR THE BENEFIT OF THE PUBLIC, I THINK.

AND BUT I'M ASKED OFTEN WHEN THEY SEE THE PIE CHARTS, THEY SEE THESE TAXES, AND THERE'S AN ASSUMPTION THAT THEY'RE ALL EQUAL.

BUT BUT THEY'RE NOT EQUAL IN TERMS OF WHAT COMES INTO CARLSBAD.

AND SO COULD YOU GO OVER, FOR EXAMPLE, ON PROPERTY TAX WHEN WE PAY PROPERTY TAX, HOW MUCH OF THAT STAYS IN THE CITY OF CARLSBAD AND HOW MUCH OF THAT GOES TO THE COUNTY OR OTHER ENTITIES AND THEN DO THE SAME FOR SALES TAX? SO WE PAY SALES TAX.

DOES IT ALL STAY IN THE CITY OR DOES SOME OF IT GO UP TO SACRAMENTO? AND THEN THE SAME FOR TOT TAX? COULD YOU PLEASE GO OVER THAT? ABSOLUTELY. THANK YOU FOR THE QUESTION.

AS FAR AS PROPERTY TAX IS CONCERNED.

SO A RESIDENT'S PROPERTY TAX BILL WILL GENERALLY BE ABOUT ONE 1.1% OF THAT.

THE CITY WOULD BE ENTITLED TO BE RECEIVING APPROXIMATELY 11% OF THAT AMOUNT.

SO WHILE ON AN ANNUAL BASIS, THE CITY WILL GENERALLY GENERATE ABOUT $78 MILLION IN PROPERTY TAX REVENUES, THAT STILL SERVES TO BE A SIGNIFICANT PORTION OF THE GENERAL FUNDS REVENUES.

IT IS THE HIGHEST REVENUE SOURCE FOR SALES TAX.

[01:45:04]

A APPROXIMATELY 7.75% IS ASSESSED AS THE TAX ON GOODS, AND OF THAT THE CITY OF CARLSBAD WOULD RECEIVE 1%.

OF THAT WITH THE COUNTY AND OTHER REGIONAL JURISDICTIONS OR ENTITIES RECEIVING.

OKAY. SO THAT'S, I GUESS WHAT, 13%, 14 ONE OF THIS.

7.7. YEAH.

TRANSIENT OCCUPANTS AND TOT TANKS.

THANK YOU, FOR TRANSIENT OCCUPANCY TAX.

THAT WOULD BE THE ONE TAX WHERE IT IS 100% LOCALIZED.

SO FOR IT'S A 1 TO 1 FOR EVERY TOT TAX DOLLAR THAT IS REMITTED FROM AN OCCUPANT TO THE HOTELIER THAT IS REMITTED DIRECTLY TO THE CITY.

SO FAIR TO SAY THAT CARLSBAD KEEPS 100% OF THAT TOT TAX.

CORRECT. SO I GUESS THE POINT THAT I'M DRIVING AT AS WE GROW INDUSTRIES HERE, IF WE WANT A ASSUMING THAT PROPERTY TAX REVENUE GROWS, SALES TAX REVENUE GROW AND TOT GROWS EQUALLY, THE BENEFIT TO CARLSBAD IS EIGHT OR TEN TIMES AS GREAT WITH TOT BECAUSE WE SIMPLY KEEP IT ALL AND THE REST IS A PERCENTAGE, YOU KNOW, 11% OR 14%.

AND HERE AND SO IT IS I HOPE IT STAYS THAT WAY FOR A LONG TIME.

AND THEN I'M NOTING THAT IT IS REAL CLOSE TO IT'S SECOND LARGEST SOURCE OF INCOME.

IS THAT RIGHT, BASED ON THIS CHART? I'M SORRY. TRANSIENT OCCUPANCY.

YES, THAT WOULD BE NUMBER THREE.

THAT WOULD BE NUMBER THREE.

AND SO AS WE AND, YOU KNOW, I GUESS HISTORICALLY, THE GROWTH OF RETAIL SALES IN TERMS OF PERCENTAGES VERSUS THE GROWTH OF TOT OVER THE COURSE OF THE LAST TEN YEARS, HAVE THEY BEEN TRACKING THE SAME OR HAS TOT OUTPACED SALES TAX SIMPLY BECAUSE ROOM RATES ARE GOING UP AND I WOULDN'T BE ABLE TO PROVIDE A DEFINITIVE ANSWER.

OVER THE LAST TEN YEARS.

BUT I WILL SAY ON MY RECOLLECTION, LOOKING AT THE HISTORY OF TOT AND SALES TAX, THEY HAVE INCREASED SUBSTANTIALLY OVER THE LAST TEN YEARS, AND THERE ARE INHERENT CORRELATIONS BETWEEN THE TWO REVENUE CATEGORIES.

A LOT OF THEM ARE TIED TO ECONOMIC TRENDS IN TERMS OF SENSITIVITY, BUT IN TERMS OF WHETHER ONE PARTICULAR INDUSTRY GROUP OF SALES TAX, SUCH AS GENERAL RETAIL, WAS GROWING AT THE SAME RATE OF TOTT, I'D HAVE TO CONFIRM THAT.

YEAH, I THINK I WOULD JUST BE CURIOUS IF THE ROOM MORE PEOPLE ARE MOVING INTO CALIFORNIA OCEAN PROPERTY GETS RIGHT.

THEY'RE NOT MAKING ANY MORE ROOM RATES GO UP.

AND MY HUNCH WOULD BE THAT THE ROOM RATES ARE GOING UP FASTER THAN COST OF GOODS IN TERMS OF RETAIL AND OUR RETAIL INCOME.

BUT IT WOULD BE GREAT TO SEE THAT TO HELP US FORECAST MAYBE YOU KNOW THAT PARTICULAR, YOU KNOW, CHART, IF YOU WILL, IN TERMS OF WHAT HAS THE HISTORIC RIGHTS BEEN ON BOTH OF THOSE? SURE. OKAY. THANK YOU. COUNCIL MEMBER ACOSTA.

LOOKS LIKE MY MIC WAS ALREADY ON.

THANK YOU SO MUCH FOR THE PRESENTATION AND I REALLY LIKE ESPECIALLY THIS SLIDE.

I KNOW WHEN YOU GIVE OTHER PRESENTATIONS, YOU ALSO SHOW A PIE CHART AND YOU SHOW SOME OTHER FIGURES.

BUT FOR THIS, FOR THE PURPOSES OF THIS PRESENTATION TODAY, SEEING THE FIGURES FROM FIRST QUARTER OF THIS YEAR HAVE IT'S VERY ENLIGHTENING BUT ALSO PLEASING TO SEE HOW WELL WE'VE DONE IN COMPARISON WITH OUR BUDGETS.

ONE OF THE TERMS THAT YOU USED EARLIER, MR. KORACH, WAS CAUTIOUSLY OPTIMISTIC AND YOU ALSO TALKED ABOUT BUDGETING CONSERVATIVELY.

AND I THINK THAT THOSE ARE REALLY KEY TO NOT BEING SURPRISED BY A DOWNTURN AND BY THE INCREASE IN INFLATION THAT WE SEE HAPPENING NOW. I KNOW THAT OUR STAFF IS MONITORING THE ECONOMIC TRENDS AND WE'RE TRYING TO STAY ON TOP OF IT.

WE SEE THOSE PROJECTIONS IN OTHER PRESENTATIONS LOOKING FIVE, TEN YEARS OUT.

AND WE ARE TRYING TO BE VERY CAREFUL.

SO THE ONLY ONE THAT I HAD A REAL QUESTION ON WAS THE THE GOLF COURSE THAT'S DOING SO AMAZING OUR CROSSINGS AND JUST KIND OF WONDERING ABOUT THE REPAYMENT OF THE MONEY THAT THE CITY HAD LENT TO THEM.

IS THAT HOW IS THAT PAYMENT PLAN GOING? SO THANK YOU VERY MUCH FOR THE COMMENTS AND QUESTION.

IN TERMS OF THE GOLF COURSE, THE BASED ON A PREVIOUS DISCUSSION, I BELIEVE IT WAS THE LAST QUARTERLY FINANCIAL UPDATE.

IT WAS DISCUSSED WHAT THE CURRENT OUTSTANDING ADVANCE AMOUNT THAT WAS WRITTEN OFF BUT NOT FORGIVEN WHAT THAT EQUATED TO.

SO APPROXIMATELY $55 MILLION WAS WRITTEN OFF ABOUT A YEAR AND A HALF OR TWO YEARS AGO.

BUT AGAIN, AS I MENTIONED, IT WAS NOT FORGIVEN AND THERE IS STILL AN INTENT IN THE FUTURE TO REPAY THAT FROM THE GOLF COURSE BACK TO THE GENERAL FUND.

IN FACT, THE GOLF COURSE HAS A STEERING COMMITTEE COMPRISED OF MEMBERS FROM THE ADMINISTRATIVE SERVICES BRANCH, PARKS AND COMMUNITY SERVICES BRANCH, AND THEN, OF

[01:50:08]

COURSE, MEMBERS FROM JK MANAGEMENT.

WE ARE STILL CURRENTLY WORKING ON THE DRAFT DOCUMENT, BUT PUTTING TOGETHER A POLICY RESERVE POLICY, SO TO SPEAK, THAT WILL PROVIDE A GUIDELINE AS TO HOW SURPLUS AND RESERVES WITHIN THE GOLF COURSE FUND ARE TO BE USED.

THE HOPE AND I'LL SAY THE PRIMARY FOCUS OF COURSE IS GOING TO BE ON OPERATIONS AND MAINTENANCE AT THE GOLF COURSE.

THE ULTIMATE INTENT IS TO ENSURE THAT THE GOLF COURSE AS A FUND ITSELF AND AS AN OPERATION DOES NOT NEED TO RELY ON THE GENERAL FUND FOR FINANCIAL ASSISTANCE.

AGAIN, SECOND AND FOREMOST OR SECONDLY I'LL SAY IS CAPITAL NEEDS.

JUST LIKE ANY FACILITY, IT IS AGING AND THERE'S GOING TO COME A TIME WHERE SUBSTANTIAL INVESTMENT WILL BE REQUIRED.

AND SO BUILDING UP THAT CAPITAL RESERVE, SIMILAR TO WHAT THE GENERAL FUND DOES ON AN ANNUAL BASIS, TAKING 6% OF ESTIMATED REVENUES AND MOVING IT OVER TO FUND CAPITAL PROJECTS, WE'RE GOING TO TRY TO SET SOMETHING UP VERY SIMILAR TO THAT IN THE GOLF COURSE FUND FOR ITS RESPECTIVE CAPITAL NEEDS AND THEN ANY SURPLUS REMAINING THEREAFTER UP TO A CERTAIN, I'LL SAY, THRESHOLD OR CAPACITY COULD BE CONSIDERED FOR REPAYMENT BACK TO THE GENERAL FUND.

SO IT'S KIND OF A ROUGH OUTLINE OF WHAT WE ARE STARTING TO PUT INTO THE WORKS.

WE'RE HOPING THAT THIS MIGHT BE A YEAR END MECHANISM OR WE CAN REALLY SEE THE FINAL RESULTS OF THE GOLF COURSE FINANCIALLY AND MAKE THE MOST ACCURATE RECOMMENDATION TO BEGIN CONSIDERING THOSE REPAYMENTS.

GREAT. THANK YOU. THAT'S MORE THAN I HAD HEARD BEFORE.

SO I'M VERY GLAD TO HEAR THAT.

IS THERE A TIMELINE ON PUTTING TOGETHER THIS STRUCTURE THAT YOU OUTLINED? IT COULD BE AS SOON AS MEETINGS, BEGINNING WITH THE FISCAL YEAR 23-24 PROPOSED AND ADOPTED BUDGET OR PERHAPS JUST SHORTLY AFTER FISCAL YEAR END.

USUALLY IN THE MONTH OF SEPTEMBER, STAFF WILL RETURN TO CITY COUNCIL TO PROVIDE A YEAR END FINANCIAL UPDATE, BRINGING RECOMMENDATIONS FOR CARRYFORWARDS AND ADDITIONAL TRANSFERS.

THAT COULD ALSO BE AN OPPORTUNITY TO PROVIDE A MORE EXPANDED REPORT, INCLUDING INFORMATION ON THE GOLF COURSE TO MAKE THOSE TYPES OF RECOMMENDATIONS SHOULD THEY APPLY GIVEN THE AMOUNT OF SURPLUS OR RESERVE THAT EXISTS AT THAT TIME.

GREAT, GREAT. YEAH, I DEFINITELY HEARD IN THE PRESENTATION RECORD HIGHS, HISTORIC HIGHS.

AND I HEARD YOU SAY JUST NOW $55 MILLION NOT WRITTEN OFF.

I DO REMEMBER WHEN THE COUNCIL HAD TO VOTE FOR FINANCIAL ACCOUNTING REPORTING PURPOSES THAT AMOUNT WAS NOT WRITTEN OFF, BUT WE HAD TO DECLARE THAT IT WAS KIND OF AN INDEFINITE PAYMENT REPAYMENT PERIOD.

SO I'D LOVE TO SEE THAT.

NOBODY LIKES TO SEE SOMEBODY WHO OWES THE MONEY KIND OF DO GREAT, BUT NOT EVER REPAY YOU.

SO IT'D BE GREAT TO SEE THAT HAPPEN.

THAT WAS THE BIG THING THAT I HAD A QUESTION ABOUT.

OTHER THAN THAT, I'M SO PLEASED WITH EVERYTHING THAT YOU'VE PRESENTED HERE TONIGHT.

THANK YOU. THANK YOU. YES.

DR. GREAT.

THANK YOU FOR THE PRESENTATION.

JUST A FEW QUESTIONS.

I JUST WANTED TO REEMPHASIZE.

IT SOUNDS LIKE OUR GRP WENT UP BY $1 BILLION THIS PAST YEAR.

WAS THAT ACCURATE? THAT WAS BETWEEN 2020 AND 2021, YES.

OKAY, GREAT.

AND THEN THIS IS A BIT OF MAYBE A DIFFERENT QUESTION, BUT IT JUST GETS AT SOME OF THE DIFFERENT THINGS THAT WE'RE GRAPPLING WITH AS AS A STATE AND ALSO AS A CITY.

BUT IT SOUNDS LIKE, YOU KNOW, YOU MENTIONED THAT THE AVERAGE INCOME FOR SOME OF THOSE SERVICE LEVEL JOBS IS $45,700. WAS THAT DID I GET THAT RIGHT? THE ADVERTISED WAGE FOR THOSE POSITIONS ON AVERAGE.

YES. OKAY. AND I MEAN, THERE'S QUITE A FEW FACTORS ASSOCIATED WITH THAT.

BUT I JUST I'M ALSO CURIOUS AND YOU MIGHT NOT HAVE THIS I JUST WANTED TO ASK, HOW MUCH ON AVERAGE ARE FOLKS SPENDING ON RENT FOR LIKE A STUDIO, ONE BEDROOM OR TWO BEDROOM IN THE CITY? DO WE HAVE THAT AT ALL? NO, I DON'T BELIEVE WE HAVE THAT.

BUT WE CAN LOOK, I BELIEVE, TO COUNTYWIDE AVERAGES AND GET BACK TO YOU.

OKAY? YEAH.

THE ONLY REASON WHY I WANTED TO EMPHASIZE THAT IS BECAUSE, OF COURSE, THAT AVERAGE I UNDERSTAND WHY BUSINESSES CAN PAY THAT MUCH FOR THAT SKILL LEVEL.

BUT AT THE SAME TIME, RENT IS ASTRONOMICALLY HIGH.

AND SO, OF COURSE, FOLKS ARE TRAVELING FROM DIFFERENT PLACES.

AND THEN GIVEN THE FACTORS OF GAS PRICES AND DIFFERENT TRENDS IN TERMS OF THE INDUSTRY SHIFTING FROM BEING IN PERSON TO REMOTE AND ALL THESE OTHER THINGS, WHICH I KNOW YOU ALL ARE VERY MUCH AWARE OF, BUT I'M JUST STATING OUT LOUD IS WHY I THINK WE'RE SEEING THAT SHIFT IN TERMS OF FOLKS NOT WANTING TO TAKE ON THAT

[01:55:05]

JOB. THE OTHER THING THAT I KNOW WE'VE TALKED ABOUT DURING THE ECONOMIC DEVELOPMENT COMMITTEE AND THAT I JUST WANTED TO BRING UP HERE WAS WITH REGARDS TO LIKE HOW WE'RE WORKING WITH THE BUSINESS COMMUNITY TO ATTRACT SOME MORE OF THAT TALENT OR TRAIN FOLKS IN THAT PARTICULAR REGARD.

AND I KNOW I HAD ASKED I KNOW WE HAVE THAT FOR LIKE MANUFACTURING AND OTHER JOBS.

BUT JUST CURIOUS BECAUSE OBVIOUSLY FOLKS WILL SAY YOU DON'T NEED EXPERIENCE TO BECOME X YOU KNOW X PERSON OR WHATEVER ELSE.

BUT I FEEL THERE IS SOME LEVEL OF TRAINING THAT NEEDS TO BE DONE TO PUT THAT PERSON INTO THAT POSITION AND THAT THEY CAN CONTINUE TO BE THERE AND SUCCEED.

SO I WAS JUST CURIOUS IF I KNOW THAT'S SOMETHING THAT I WAS JUST CURIOUS ON.

AS IS, IS THERE SOMETHING THAT THE BUSINESS COMMUNITY IS WORKING ON WITH REGARDS TO WORKING WITH THOSE INDIVIDUALS AND TRYING TO FILL THAT PIPELINE? I WOULD SAY THROUGH EDUCATIONAL PARTNERS THERE ARE NON-DEGREE TRACKS.

AMIR ACOSTA IS A IS A GREAT EXAMPLE TO PROVIDE TRAINING PROGRAMS NECESSARY FOR GETTING INTO INDUSTRY.

AS YOU HAD ALLUDED TO, THE CITY'S JOB READINESS PROGRAM, WHICH WE ARE PILOTING WITH SEVERAL PARTNERS, LOOKS TO PROVIDE THAT BASIC INTRODUCTION TO INDUSTRIES THAT ARE HIRING AT NO COST VIA A COMPLETELY ONLINE PROGRAM AND A MICRO CREDENTIAL.

SO WE DO HAVE MANY CARLSBAD BUSINESSES AND BUSINESSES ACROSS NORTH COUNTY AT THE TABLE PARTICIPATING IN THOSE THINGS.

IT'S A NOTABLY TIGHT LABOR MARKET AND SO HAVING THE ATTENTION OF BUSINESSES IS EASY NOW, AS IF THE LABOR MARKET BECOMES LESS CONSTRAINED. WE MAY NOT HAVE THE ATTENTION OF BUSINESSES, SO WE'RE HOPING TO CAPTURE THIS WINDOW WHERE BUSINESSES ARE AT THE TABLE AND WILLING TO PURSUE ALTERNATE MEANS TO BRING PEOPLE INTO INDUSTRY AND MAKE THOSE PROGRAMS SUSTAINABLE.

GREAT. AND I THINK ONE LAST QUESTION.

I'M JUST LOOKING HERE.

NO, I THINK IT WAS JUST TO REEMPHASIZE THIS SLIDE, WHICH I KNOW MY MY COLLEAGUES WERE ABLE TO ALSO DO.

BUT I WAS JUST REALLY GLAD TO SEE, YOU KNOW, OUR CONSERVATIVE ESTIMATES AND GLAD TO SEE WHERE WE'RE AT IN TERMS OF HOPEFULLY TRENDING IN A POSITIVE DIRECTION AND HOPING THAT IT CONTINUES.

BUT I APPRECIATE US CONTINUING TO BE AS CONSERVATIVE AS POSSIBLE AS WE MOVE FORWARD.

SO REALLY APPRECIATE THE PRESENTATION.

THANK YOU. MR. BLACKBURN, WHAT QUARTERS DO WE GET OUR PROPERTY TAXES? THE REASON I ASK THAT IS SOMEBODY LOOKING AT THIS WOULD SAY THIS JUST DOESN'T MAKE SENSE.

IT'S BECAUSE WE GET OUR PROPERTY TAXES AT DIFFERENT QUARTERS.

WHEN WHEN IS THAT? SO WE GENERALLY RECEIVE THOSE THOSE ALLOCATIONS IN NOVEMBER, DECEMBER AND THEN LATER IN THE SPRING, IN THE MONTH OF APRIL.

SO I APOLOGIZE.

I SHOULD HAVE CLARIFIED THAT WHEN LOOKING AT THESE NUMBERS AND SAYING THAT PROPERTY TAX IS THE LEADING REVENUE SOURCE, IT CERTAINLY DOESN'T LOOK LOOK LIKE IT BASED ON THESE FIGURES. BUT YEAR OVER YEAR, WHEN STAFF PRESENT THE FIRST QUARTER, THE NUMBERS DO LOOK VERY CONSISTENT WITH THESE AS THEY'RE PRESENTED.

WHEN YOU SEE THE MID-YEAR UPDATE, IT'LL BE SUBSTANTIALLY LARGER.

SO WHY WOULD WE GET SOME TRICKLING IN AT LIKE 3.4 MILLION FOR THIS QUARTER WHEN IT ALL COMES IN WHEN PEOPLE PAY THEIR PROPERTY TAXES.

RIGHT. THERE ARE MULTIPLE, I'LL SAY, CHANNELS OF ALLOCATION FROM THE PROPERTY TAX AS A AS A GREATER REVENUE SOURCE BETWEEN SECURED UNSECURED.

THERE'S SUPPLEMENTAL THERE'S AIRCRAFT TAXES.

SO THERE'S ABOUT SIX OR SEVEN DIFFERENT BUCKETS WITHIN PROPERTY TAXES WHERE THE CITY WILL RECEIVE VARIOUS DISTRIBUTIONS.

THE PRIMARY ALLOCATIONS FOR SECURED AND UNSECURED WOULD BE RECEIVED.

AND THOSE THOSE TWO ALLOCATIONS IN NOVEMBER, DECEMBER AND APRIL.

WHEN YOU TALK ABOUT AIRCRAFT TAXES, ARE AIRCRAFTS TAXED LIKE IT'S SOMEBODY'S HOUSE.

IF THEY PAY $1,000,000 FOR AN AIRPLANE, IT'S TAXED AT THE 1.1 1.3%.

CORRECT. OKAY.

THANK YOU. SURE.

SINCE YOU PROBABLY DON'T HAVE THIS FIGURE, BUT IT'D BE INTERESTING TO HAVE, SINCE WE PAID OFF THE GOLF COURSE, WHAT'S BEEN THE POSITIVE REVENUE OVER THAT PERIOD OF TIME? DO YOU KNOW THAT? SO. SINCE THE SINCE WE PAID OFF THE BOND.

AND I DON'T EXPECT YOU TO HAVE IT, BUT IT'D BE A NICE NUMBER BECAUSE IT IS A POSITIVE NUMBER.

IT'S NOT A NEGATIVE NUMBER, CORRECT? RIGHT. IN TERMS OF NET INCOME THAT WAS GENERATED AT THE GOLF COURSE.

OKAY. HELP ME UNDERSTAND THIS.

IN INFLATION, WHO WINS? WHO'S THE FIRST TO WIN? IS THAT NOT GOVERNMENT? DURING PERIODS OF INFLATION.

THAT'S A DIFFERENT QUESTION.

[02:00:01]

WHEN THE PRICE OF GAS DOUBLES, SO DOES THE TAX.

WHO GETS THE BENEFIT OF THE TAX? WELL, I WILL SAY FOR.

THIS ISN'T TO YOUR POINT, BUT USING GAS AS AN EXAMPLE.

IT'S REALLY NOT THE PRICE OF GAS THAT HAS IMPACTS ON ON TAX REVENUES.

IT'S THE VOLUME OF THE SALE.

SO BY GALLON.

BUT TO YOUR POINT, THE PURCHASE OF GOODS, CERTAINLY THE GOVERNMENT WOULD WOULD BENEFIT, RIGHT? I MEAN, WE'RE SEEING THAT FROM A SALES TAX PERSPECTIVE WHERE WE ARE BENEFITING DURING THE FIRST THREE QUARTERS BECAUSE INFLATION HAS INCREASED THE PRICES AND DEMAND HAS NOT YET ADJUSTED.

SO I'LL SAY TEMPORARILY IT WOULD APPEAR THAT THE GOVERNMENT IS IN A MORE FAVORABLE POSITION, BUT AT SUSTAINED LEVELS OF INFLATION.

IT'S NOT TO SAY THAT WE'RE NOT GOING TO BE IN A LESS ADVANTAGEOUS POSITION.

I'LL GET THERE IN A SECOND.

SO RIGHT NOW WE'RE WINNING, CORRECT.

PRICE OF HOMES OVER THE LAST TWO OR THREE YEARS.

HOW MUCH HAS IT BEEN INFLATED? 20%, 30% RIGHT ABOUT THERE.

SO WHEN YOU LOOK AT THESE NUMBERS, ALL THESE NUMBERS ARE SKYROCKETING AT THIS MOMENT IN TIME.

SO LET'S GO BACK TO 08090 TEN AFTER IT GOES THE OTHER DIRECTION.

HOW DOES THAT AFFECT GOVERNMENT? IT'S USUALLY THE LAST PERSON TO GO DOWN, BUT THEY'RE DOWN THE LONGEST.

IS THAT NOT CORRECT? TRUE. OKAY.

SO RIGHT NOW WHAT WE'RE SEEING IS BEING VERY POSITIVE NUMBERS IS DUE TO INFLATION.

AND I WOULD JUST ASK YOU TO GO BACK TO 0809 AND WHAT HAPPENED THEN AND HOW WE WERE DOING EXTREMELY WELL.

AND THEN ALL OF A SUDDEN WHEN THINGS STARTED TO GO DOWN, I.E.

PROPERTY WENT DOWN 20, 30% AT LEAST.

I MEAN, THAT COULD BE HOW OUR NUMBERS TREND OVER THE NEXT 3 TO 5 YEARS.

SO EVEN THOUGH YOU'RE VERY POSITIVE TODAY AND YOU'RE SEEING THE BEGINNING OF INFLATION AS YOU WORK YOUR WAY THROUGH IT, IT GOES INTO THE REVERSE. AND SO I JUST WANT TO MAKE PEOPLE AWARE OF THAT.

YOU CAN SAY WE'RE DOING REALLY WELL NOW.

TO ME, THAT'S, OH MY GOD, HOW BAD IS IT GOING TO HURT? SO THOSE ARE JUST SOME OF MY COMMENTS ON AS WE'RE AS WE'RE HERE TODAY.

SO AS WE LOOK TO THE FUTURE.

SO A VERY GOOD REPORT.

I APPRECIATE THE DETAIL.

SO ANY OTHER QUESTIONS OR COMMENTS? MR. BLACKBURN, JUST A QUICK QUESTION.

DID I UNDERSTAND WHEN YOU SAID WE PAY TAXES BASED ON THE GALLON OF GAS, NOT ON THE PRICE OF GAS? IS THERE ALSO A SALES TAX ON A GALLON OF GAS THAT'S BASED ON THE PRICE OF THE GAS? CORRECT. I BELIEVE IT IS A MORE MINIMAL AMOUNT.

BUT WHEN WE REFER TO GAS TAX, ONE OF THE CITY'S FUNDING SOURCES FOR MAINTAINING STREETS AND ROADS, THAT GAS TAX THAT ULTIMATELY GETS REMITTED TO THE STATE AND THEN DISTRIBUTED TO JURISDICTIONS THAT IS ASSESSED BASED ON VOLUME OR THE GALLONS THAT IS PURCHASED RATHER THAN THE PRICE.

SO THERE'S NOT A SEVEN AND THREE QUARTERS PERCENT SALES TAX ON A GALLON OF GAS.

I WOULD HAVE TO CONFIRM THAT.

I DON'T KNOW IF IT'S THE ENTIRE 7.75.

BUT THERE IS NO REDUCTIONS.

IT'S SEVEN. AND SO WHEN GAS GOES UP THAT YOU SAID, I THINK, WHAT 1% OF THAT OR ONE OF THE PERCENTAGE OF THAT SEVEN THREE QUARTERS COMES BACK TO THE CITY, IF IT IS ASSESSED ON THE SALE OF GASOLINE, THEN YES, THAT WOULD ABSOLUTELY BE CORRECT.

ALL RIGHT. THANK YOU. SURE.

AND ALSO, I MEAN, WHEN YOU TALK ABOUT GAS TAX, YOU ALSO HAVE THE FEDERAL TAX AND THE STATE TAX AS WELL, AS WELL AS THE SALES TAX.

YES, MR. NORBY. THANKS.

JUST AN ADDITIONAL COMMENT SINCE WE HAVE AN EARLY NIGHT AND THIS IS THE LAST ITEM ON THE AGENDA, I THINK IT'S SOME CONTEXT IN TERMS OF INFLATION AND WHO WINS AND GOVERNMENT. YOU KNOW, CLEARLY I THINK ON OUR BUDGETS, THERE'S NO DOUBT WE'RE GOING TO RECEIVE WHEN WE HAVE THAT THERE IS SOME PROTECTION WHEN THE ECONOMY GOES DOWN.

I DON'T THINK WE'RE GOING TO SEE A DECREASE IN PROPERTY TAX JUST BECAUSE THE INFLATIONS HAVE BEEN SO GOOD AND WHAT WE CALL A PROP 13 DELTA OR BASIS.

BUT IT'S TO DESCRIBE IT AS KIND OF A WIN FOR GOVERNMENT OR GOVERNMENT AND FIRST PLACE.

I THINK IT'S WRONG BECAUSE WE ALSO HAVE SEVERAL HUNDRED MILLION SOCKED AWAY FOR PROJECTS AND THAT ARE INVESTED AND WE HAVE OUR 60% RESERVE THAT WE HAVE AND WE'RE LOSERS THERE, RIGHT? SO THE COST OF CONSTRUCTION GOES UP.

THAT MONEY IS WORTH A LOT LESS EVERY YEAR WHEN WE HAVE INFLATION.

SO PERHAPS ON THE BUDGET.

BUT OVERALL I THINK IT HARMS US.

WE SIMPLY CAN'T BUILD WHAT WE COULD BUILD WHEN WE HAD A, YOU KNOW, A TYPICAL SLOW TWO OR 3% THAT WAS RELIABLE.

BUT JUST FINAL COMMENT.

THANK YOU FOR YOUR PRESENTATION.

BUDGET LOOKS GOOD RIGHT NOW AND WE'RE CAUTIOUS, BUT IT'S CERTAINLY NICE TO SEE IT GOING THIS WAY AS OPPOSED TO BEING LESS THAN WHAT WE WERE CAUTIOUS ABOUT.

THANK YOU. AND JUST A QUICK COMMENT, MR. NORBY. IF YOU TRACK UP AND DOWN AN ECONOMY, I WOULD JUST USE THE ALGA NORTE POOLS AND EXAMPLE.

[02:05:02]

IT WAS A $50 MILLION POOL.

WHEN IT WAS FIRST PLANNED.

WE BUILT IT FOR 37 MILLION.

SO IT'S HOW YOU TRACK THE ECONOMY AND WHEN YOU CHOOSE TO MAKE YOUR BIG EXPENDITURES.

SO WHEN YOU'RE MAKING EXPENDITURES THAT ARE 50 OR $100 MILLION IF YOU'RE WATCHING THE ECONOMY.

OBVIOUSLY, THERE'S TIMES TO BUILD AND THERE'S TIMES NOT TO BUILD.

SO. FINAL COMMENTS.

BUT THEN ALL WE HAD TO DO IS RECEIVE THE REPORT CORRECTLY.

SO FINAL COMMENTS, MR. NORBY.

NO FINAL COMMENTS OTHER THAN I CHOOSE TO BUILD WHEN WHEN WE'RE IN A RECESSION BECAUSE LABOR IS CHEAP.

GOT IT. COUNCIL MEMBER ACOSTA.

DR.. YES, JUST A COUPLE.

WE DID HAVE OUR LEAGUE OF CALIFORNIA CITIES MEETING ON MONDAY.

I'M SORRY. I THOUGHT IT WAS COMMENTS ON THAT PRESENTATION.

I'M SORRY. I'M SORRY.

I DO HAVE COMMENTS THAT ARE THE NEXT ITEM.

OKAY. LET'S BACK UP.

FINAL COMMENTS ON THAT.

YOU HAVE NONE. OKAY, GREAT.

[COUNCIL COMMENTARY AND REQUESTS FOR CONSIDERATION OF MATTERS]

SORRY FOR INTERRUPTING YOU.

FOR THE COUNCIL COMMENTS ON.

ON OUR DIFFERENT ASSIGNMENTS.

THE CHAMBER OF COMMERCE HAD ITS BOARD RETREAT LAST WEEK.

IT WAS AN ALL DAY EVENT.

I WASN'T ABLE TO STAY THE ENTIRE TIME LAST YEAR, BUT THIS TIME I WAS.

AND IT WAS VERY INFORMATIVE.

LEARNING ABOUT THE WORK TO TO EMPOWER OUR LOCAL BUSINESSES THAT THE CHAMBER DOES.

I DON'T SIT ON THE ECONOMIC DEVELOPMENT COMMITTEE, BUT AS A SMALL BUSINESS OWNER AND SOMEBODY WHO REALLY CARES ABOUT SUPPORTING OUR LOCAL BUSINESS COMMUNITY, I DEFINITELY COULD SEE THAT WE AS A CITY ARE DOING A LOT TO SUPPORT OUR BUSINESSES.

SO I LOVE THAT, THAT SENSE OF GREAT TEAMWORK.

AND THEN IN THE UPCOMING WEEK, THIS WEEK, I'VE GOT ENCINO WASTEWATER TOMORROW THAT SHOULD BE A GOOD BOARD MEETING.

I MENTIONED LAST WEEK THAT IT'S STREAMED ONLINE SO ANYBODY CAN LOOK AT THEIR WEBSITE.

I ALSO HAVE THE CLEAN ENERGY ALLIANCE BOARD MEETING ON THURSDAY THAT'S ALSO STREAMED ONLINE IF YOU JUST GO TO THEIR WEBSITE SO ANYBODY CAN WATCH AND PARTICIPATE THAT WAY. THERE ARE INSTRUCTIONS FOR PUBLIC COMMENT ON THE WEBSITE AS WELL.

AND OTHER THAN THAT.

NEXT, WEEK IS THANKSGIVING.

SO I WANTED TO WISH EVERYBODY A VERY HAPPY THANKSGIVING AND HOPE THAT PEOPLE FEEL GRATITUDE FOR LIVING IN OUR COMMUNITY, BECAUSE I KNOW THAT I DO.

AND THEN OUR NEXT COUNCIL MEETING IS NOT TILL DECEMBER, SO I HOPE EVERYONE HAS A GREAT REST OF THE MONTH.

THANK YOU.

DR. BHAT-PATEL. YES, THANK YOU.

SO JUST WANTED TO REPORT OUT ON THE LEAGUE OF CITIES.

WE WILL BE TALKING ABOUT, YOU KNOW, JUST WHAT OUR PRIORITIES ARE GOING TO BE MOVING INTO THE YEAR.

I WILL BE MEETING WITH OUR STAFF AND ALSO WITH SOME OF OUR OTHER LEADERS TO DISCUSS WHAT WE'LL BE DOING AS A REGION TO ADVOCATE ON BEHALF OF OUR CITIES AT THE STATE LEVEL. AND THEN ALSO WE DID ACTUALLY HAVE A PRESENTATION FROM AN ORGANIZATION FROM SAN DIEGO STATE UNIVERSITY THAT FOCUSES SPECIFICALLY ON HELPING. CITIES WITH REGARDS TO SOLUTIONS, SPECIFICALLY AROUND ENVIRONMENTAL MEASURES.

AND SO I KNOW I WON'T GO INTO DETAIL, BUT I KNOW OUR STAFF ARE DEFINITELY LOOKING INTO POTENTIAL WAYS THAT WE CAN PARTNER WITH THEM.

AND THEN OUR ECONOMIC DEVELOPMENT SUBCOMMITTEE MET YESTERDAY AND WE HAD A GREAT PRESENTATION ON JUST SOME WAYS THAT WE CAN INCORPORATE AND LOOK FORWARD INTO THE FUTURE WITH REGARDS TO TECHNOLOGY AND ARTIFICIAL INTELLIGENCE, ETC.

AND I THINK THAT WAS JUST REALLY INTERESTING TO THINK ABOUT IN TERMS OF WHAT WE CAN DO AND HOW WE CAN BE HOPEFULLY ON THE FRONT OF INNOVATION IN THAT PARTICULAR REGARD.

I DO HAVE AN NCTD BOARD MEETING AND A COMMITTEE MEETING FOR NCTD SPECIFICALLY ON THURSDAY.

AND THEN, YOU KNOW, WE HAD THE OPPORTUNITY, MANY OF US WERE AT THE VETERANS DAY CELEBRATION FOR ARMY NAVY ACADEMY.

I'LL PUT ANOTHER PLUG IN FOR EVERYONE THAT CAME.

IT'S ALWAYS REALLY FUN IN THE VILLAGE WHEN WE HAVE THAT.

I THINK IT'S JUST A GREAT OPPORTUNITY TO GO CHECK OUT SOME OF THE REALLY COOL BUSINESSES THAT WE HAVE HERE.

SO ENJOY THANKSGIVING AND THE REST OF NOVEMBER.

MR. BLACKBURN.

YOU SURE? OKAY.

AND AGAIN, I JUST WANT TO BEGIN BY CONGRATULATING YOU AND DR.

BHAT-PATEL. VERY WELL DONE.

VERY GOOD CAMPAIGN.

CONGRATULATIONS ON YOUR WIN.

WE DO NOT HAVE ANY AREAS WHERE I THINK THERE WILL BE THREE OF US OVER THE NEXT.

BEFORE NOW AND DECEMBER 7TH.

SO I HAVE NOTHING TO REPORT THERE.

I HAVE NO OTHER REPORTS MYSELF, ONLY TO SAY MANAGER ASSISTANCE SYSTEM.

[CITY MANAGER COMMENTS]

THANK YOU. ONLY TO SAY HAPPY THANKSGIVING TO THE MAYOR AND COUNCIL AND OF COURSE, TO THE STAFF AND THE PUBLIC AS WELL.

THANK YOU. I ECHO THOSE SENTIMENTS.

NOTHING FOR ME. CITY CLERK.

NOTHING, THANK YOU. AND AGAIN, I WISH EVERYONE IN THE COMMUNITY A HAPPY THANKSGIVING AND BE SAFE.

[02:10:04]

WITH THAT, WE STAND ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.

Nov 15, 2022 City Council Meeting

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