Apr 04, 2023 City Council Meeting

[00:00:04]

IT'S 5:00. I'M CALLING THE MEETING TO ORDER.

[CALL TO ORDER]

ITEM NUMBER TWO AND AS THE COMMUNITY DEVELOPMENT COMMISSION ON PUBLIC HEARING ITEM NUMBER SIX AND COUNCIL MEMBER BURKHOLDER, WILL YOU PLEASE LEAD US IN THE PLEDGE? PLEASE RISE. READY AGAIN.

[APPROVAL OF MINUTES]

THE MEETING OF THE REGULAR I'M SORRY, THE MINUTES OF THE REGULAR MEETING HELD MARCH 7TH OF 23.

THE MINUTES OF THE SPECIAL MEETING HELD MARCH 21ST OF 23.

MOVE APPROVAL OF THE MINUTES AS RECITED BY THE MAYOR.

SECOND, PLEASE VOTE.

PASSES UNANIMOUSLY.

PRESENTATIONS PROCLAMATION WILL BE IN RECOGNITION OF EARTH MONTH AND I INVITE.

[PRESENTATIONS]

GREAT. THANK YOU.

AND I'D LIKE TO INVITE MS. AVOCETA JONES, OUR SENIOR PROGRAM MANAGER FOR PUBLIC WORKS, UP THIS WAY.

AND JUST QUICKLY, BEFORE I READ OUR PROCLAMATION, I'D LIKE TO SAY THAT THE THEME FOR EARTH DAY THIS YEAR IS INVEST IN OUR PLANET.

AND BASICALLY IT'S TO FOCUS ON ENGAGING GOVERNMENTS, INSTITUTIONS, BUSINESSES THROUGHOUT THE WORLD AND ENSURING THAT WE'RE REALLY INVESTING IN THE GREEN ECONOMY AND AS A PATHWAY TO A HEALTHIER AND EQUITABLE FUTURE.

GOVERNMENTS, INCLUDING, OF COURSE, THE CITY OF CARLSBAD, HAVE PUT FORWARD MANY SUSTAINABLE INITIATIVES AND POLICIES LIKE DIVESTING FROM FOSSIL FUELS, BEING PART OF THE CLEAN ENERGY ALLIANCE AND TRANSITIONING AWAY FROM SINGLE USE PLASTICS.

SO OF COURSE WE'RE DOING WHAT WE CAN HERE IN THE CITY TO BE A PART OF THAT.

AND WITH THAT, I'LL GO AHEAD AND READ OUR PROCLAMATION.

SO WHEREAS APRIL 22, 2023 MARKS THE 53RD ANNIVERSARY OF EARTH DAY, CELEBRATED IN CITIES ACROSS OUR NATION AND IS A CELEBRATION TO UNITE EVERYONE IN AN EFFORT TO PROTECT THE PLANET.

AND. WHEREAS, THE CITY OF CARLSBAD HAS SEVERAL EVENTS THROUGHOUT THE MONTH OF APRIL 2023 FOR RESIDENTS TO CELEBRATE EARTH MONTH AND EMPOWER THEMSELVES WITH KNOWLEDGE TO CONSERVE AND PROTECT PLANET EARTH.

AND. WHEREAS, LOCAL COMMUNITIES CAN LEAD THE WAY IN TAKING STEPS TO PROTECT AND PRESERVE OUR NATURAL RESOURCES BY ENCOURAGING SUSTAINABLE WATER AND ENERGY CONSUMPTION, TRANSPORTATION PRACTICES, WASTE REDUCTION AND RECYCLING.

AND. WHEREAS, THE CITY OF CARLSBAD ENCOURAGES THE COMMUNITY TO PARTICIPATE IN PROGRAMS AND ACTIVITIES THAT WILL DEEPEN THEIR UNDERSTANDING OF ENVIRONMENTAL PROTECTION, THE URGENCY OF CLIMATE CHANGE, AND THE NEED TO CREATE A HEALTHIER, SAFER FUTURE FOR ALL PEOPLE.

AND. WHEREAS, THE CITY OF CARLSBAD IS COMMITTED TO OUR COMMUNITY VALUES OF PRESERVING AND PROTECTING OPEN SPACE AND THE NATURAL ENVIRONMENT, PROMOTING ACTIVE, HEALTHY LIFESTYLES AND ENCOURAGING SUSTAINABLE PRACTICES AND CONSERVATION.

NOW, THEREFORE, I, PRIYA BHAT-PATEL, ON BEHALF OF THE MAYOR AND CITY COUNCIL, DO HEREBY PROCLAIM THE MONTH OF APRIL 2023 AS EARTH MONTH IN THE CITY OF CARLSBAD. AND WITH THAT, I'LL PASS IT OFF TO YOU, MISS JONES.

THANK YOU. COUNCIL MEMBER BHAT-PATEL, MAYOR, AND CITY COUNCIL FOR YOUR CONTINUED SUPPORT AND COMMITMENT TO RESPONSIBLE STEWARDSHIP OF OUR ENVIRONMENT.

WE ARE DELIGHTED TO CELEBRATE EARTH DAYS 53RD ANNIVERSARY WITH EVENTS AND ACTIVITIES THROUGHOUT THE MONTH OF APRIL.

EARTH DAY IS AN OPPORTUNITY TO REFLECT AND BRING AWARENESS ON OUR COMMUNITY'S COMMITMENT TO REDUCE THEIR IMPACT OF THE ENVIRONMENT, INCLUDING THE REDUCTION OF PLASTIC POLLUTION.

DURING THE MONTH OF APRIL, WE SET UP A VARIETY OF EVENTS, WORKSHOPS AND WAYS TO TAKE ACTION TO CELEBRATE OUR EARTH.

ALL MONTH LONG, I INVITE EVERYONE TO JOIN THE ENVIRONMENTAL SUSTAINABILITY DEPARTMENT DURING THE WEEK OF APRIL 17TH TO THE 21ST.

WE WILL BE HOSTING VIRTUAL LUNCH AND LEARN SESSIONS, SHOWCASES OUR PROGRAMS AND DIVISIONS.

JOIN US TO CELEBRATE EARTH MONTH AND CARLSBAD SUSTAINABILITY BY PARTICIPATING AND ENCOURAGING OTHERS TO PARTICIPATE IN THESE EVENTS.

PLEASE VISIT OUR WEBSITE.

CARLSBAD.GOV EARTH MONTH FOR ALL THE DETAILS.

THANK YOU VERY MUCH.

AND I'M INVITING THE COUNCIL TO COME DOWN AND TAKE A GROUP PICTURE.

[00:05:15]

NEXT IS PUBLIC COMMENT.

[PUBLIC COMMENT]

THE BROWN ACT ALLOWS ANY MEMBER OF THE PUBLIC TO COMMENT ON ITEMS NOT ON THE AGENDA.

PLEASE TREAT OTHERS WITH COURTESY, CIVILITY AND RESPECT.

MEMBERS OF THE PUBLIC MAY PARTICIPATE IN THE MEETING BY PROVIDING COMMENTS AS PROVIDED ON THE FRONT PAGE OF THIS AGENDA.

THE CITY COUNCIL RECEIVED COMMENTS AS REQUESTED UP TO A TOTAL OF 15 MINUTES IN THE BEGINNING OF THE MEETING.

ALL OTHER NON-AGENDA PUBLIC COMMENTS WILL BE HEARD AT THE END OF THE MEETING IN CONFORMANCE WITH THE BROWN ACT.

NO ACTION CAN OCCUR ON THESE ITEMS. WE WELCOME CLAPPING DURING THE CEREMONIAL PRESENTATIONS AT THE BEGINNING OF THE CITY COUNCIL MEETING, HOWEVER, WE ASK THAT YOU REFRAIN FROM CLAPPING DURING THE BUSINESS SECTION OF THE MEETING, STARTING WITH THE NON-AGENDA PUBLIC COMMENT.

THIS WILL HELP MAKE SURE THAT THE PEOPLE'S BUSINESS CAN BE CONDUCTED EFFICIENTLY AND THAT THIS CHAMBER IS A PLACE WHERE ALL POINTS OF VIEW ARE WELCOMED AND RESPECTED.

AND YOU'LL GET THREE MINUTES TO SPEAK WHEN YOU'RE DOWN TO 30 SECONDS.

THE PODIUM LIGHT WILL TURN YELLOW.

I'M GOING TO HOLD YOU TO THE THREE MINUTES SO EVERYBODY GETS THE SAME AMOUNT OF TIME TO SPEAK.

AND I'VE ASKED THE CLERK TO TURN OFF THE MICROPHONE AT THREE MINUTES, SO PLEASE CALL PUBLIC SPEAKERS.

MIKE BORELLO, FOLLOWED BY GLENN BERNARD.

MIKE BARELLO. GOOD EVENING, MAYOR, COUNCIL.

ACTUALLY THREE MINUTES IS A LOT OF TIME, THEY ONLY GIVE YOU TWO IN COUNTY.

SO I WANT TO REVISIT THE INCIDENT THAT OCCURRED ON MARCH 8TH AT CALVARY HILLS GYM UNIFIED SCHOOL DISTRICT BOARD MEETING.

THIS IS REGARDING THE FILM ACADEMY ETHNIC STUDIES COURSE AND.

THIS COURSE, IF YOU WERE TO READ THE SYLLABUS, CONTAINS A LOT OF THE ELEMENTS THAT YOU FIND IN WHAT'S CALLED CRITICAL RACE THEORY THAT'S BEEN REBRANDED, RENAMED DIVERSITY EQUITY AND INCLUSION SOUNDS SO NORMAL; RIGHT? YOU WANT DIVERSITY, YOU WANT EQUITY AND INCLUSION.

BUT IT'S NOT REALLY THAT BEEN REBRANDED SO THAT THEY COULD PUSH THIS CRITICAL RACE THEORY DOWN THROUGH THE K THROUGH 12 AGES.

BUT ANYWAY, PETOSKEY AND COAST NEWS PUBLISHED AN ARTICLE ON IT.

PUBLIC SHOULD BE AWARE OF THIS, SHOULD READ IT.

HE REFERENCED A PART OF CALIFORNIA REGULATIONS OF THE FAIR POLITICAL PRACTICES COMMISSION, TITLE TWO, DIVISION SIX, CALIFORNIA CODE OF REGULATIONS.

THIS IS SECTION 18,704 REGARDING MAKING, PARTICIPATING IN MAKING OR USING OR ATTEMPTING TO USE OFFICIAL POSITION TO INFLUENCE A GOVERNMENT DECISION DEFINED.

SO THEY COME SHORT OF REALLY WHAT IS ABUSE OF POWER.

PATOSKI CALLED IT STAYING IN YOUR OWN LANE, SO CITY COUNCIL SHOULD STAY IN THEIR LANE.

SCHOOL DISTRICTS SHOULD STAY IN THEIR LANE AND DO THEIR OWN BUSINESS, BUT NOT TRY TO INFLUENCE A VOTE HERE OR A VOTE THERE.

AND WHAT HAPPENED IS ONE OF YOUR BOARD MEMBERS, I WON'T SAY ANY NAMES INFLUENCED IT BY WHAT'S CALLED A BRIGADE. A BRIGADE IS WHERE YOU GO ON SOCIAL MEDIA OR EMAIL AND YOU RALLY A LOT OF PEOPLE TOGETHER AND THEY SHOW UP AT A MEETING AND THEY

[00:10:05]

AND THAT'S WHAT HAPPENED THAT NIGHT, MARCH 8TH.

SO. I'M NOT GOING TO LET THIS GO.

I'M GOING TO KEEP BRINGING IT UP AT COUNCIL MEETINGS UNTIL THERE'S SOME RESOLUTION.

AN APOLOGY.

DENIAL. CONFIRMATION.

I DON'T KNOW WHAT, BUT JUST NOT GOING TO LET IT GO.

OKAY. THANK YOU.

MEGA DITTOS TO EVERYTHING THAT MIKE JUST SAID.

I BELIEVE YOU'RE. WEREN'T YOU SPEAKING TO PATEL? YOU THINK YOU WERE SPEAKING ABOUT HER MR. MIKE? ANYWAY, IT WAS ALL GOOD.

I SECOND THAT EMOTION.

A COUPLE OF WEEKS AGO, THE MAYOR OF CLEARWATER IN THE FREE STATE OF FLORIDA RESIGNED BECAUSE THEY HAVE A REALLY EXPENSIVE PROJECT COMING UP OF A REMODELING OR BUILDING A BRAND NEW CITY HALL.

AND HE KNOWS THAT THEY DON'T HAVE THE MONEY FOR IT.

AND THE OTHER PEOPLE ON THE COUNCIL DON'T SEEM TO CARE.

HE KNEW HE WAS IN FOR GRIEF AND FRUSTRATION, SO HE RESIGNED IN THE MIDDLE OF A MEETING AND WALKED OUT.

AND IT'S TOO BAD BECAUSE HE'S A REPUBLICAN AND THERE'S GOING TO BE A LOT OF BAD STUFF COMING IN THIS CITY, INCLUDING MAYBE A NEW SALES TAX, WHICH IS OUTRAGEOUS.

SO ANYWAY, WE NEED THE REPUBLICANS UP THERE TO STAY AND FIGHT NEW SPENDING AND NEW TAXES.

MELANIE, I'M GLAD THAT YOU'RE MY DISTRICT REP.

YOU'RE VERY GOOD, VERY PRACTICAL PERSON, GOOD VALUE.

SO ANYWAY, SO THIS CITY IS NOT ONLY CONTEMPLATING A NEW CITY HALL, BUT ALSO A SWIMMING POOL.

AND SO THIS ALL THIS GOES BACK.

IF YOU WANT TO THINK ABOUT BIG SPENDING, I'M SURE THAT THE COMBINED COST OF THE POOL AND THE CITY HALL ARE GOING TO EXCEED $100 MILLION BECAUSE THAT'S APPROXIMATELY WHAT THE THE GOLF COURSE COST.

SEE THERE ARE PRIVATELY OWNED GOLF COURSES IN THE CITY, BUT THEY NEEDED ONE WHERE I GUESS THE COUNCIL COULD PUT A BRONZE PLAQUE ON IT.

SO THEY STOPPED REPORTING WHEN THE COST HIT 70 MILLION AND IT KEPT GOING.

AND WE HAD OUR OWN VERSION OF SOMEBODY RESIGNING FROM THE CITY COUNCIL BECAUSE OF EXCESSIVE COST.

THAT WAS NOREEN SICKAFOOSE.

SHE GOT ELECTED IN 2004 RIGHT WHEN THINGS WERE GETTING REALLY EXPENSIVE.

AND THERE ARE COST OVERRUNS LIKE CRAZY ON THAT GOLF COURSE.

IN 2006, AFTER TWO YEARS OF THIS REALLY BAD STUFF.

SHE CONTACTED ALL THE PEOPLE THAT WERE CHALLENGERS ON THE BALLOT AND I WAS ONE OF THEM.

I WAS A ONE ISSUE CANDIDATE.

I JUST SAID CARLSBAD NEEDS A VIEW PROTECTION ORDINANCE.

ONE ISSUE CANDIDATE COLLECTED, NO MONEY POSTED NO SIGNS.

BUT I WAS A CHALLENGER.

AND SO I GOT THE SAME THING FROM HER THAT THE OTHER CHALLENGERS GOT.

AND THAT IS THE CORRUPTION IS KILLING HER SPIRIT AND THAT IF NO NEW PERSON IS ELECTED LATER THAT YEAR, SHE WAS GOING TO RESIGN SHORTLY AFTER THAT.

AND IN TWO MONTHS AFTER THE ELECTION, WITH NO NEW FACES GETTING ELECTED, SHE IN FACT, RESIGNED.

SO HOW IS ALL THIS EXCESSIVE SPENDING GOING TO END? IN TERMS OF THE FEDERAL DEFICIT.

KEEP YOUR EYES ON HOW CHINA TAKES OVER TAIWAN, BECAUSE THAT'S HOW THEY'RE GOING TO TAKE OVER AMERICA LATER.

DR. DOROTA PEARSON, FOLLOWED BY KRISHNA KRISHNA.

HELLO. MY NAME IS DR.

DOROTA PEARSON.

I HAVE LIVED AT 7224 BABYLONIA FOR ALMOST 15 YEARS.

A FEW YEARS AGO, OUR STREET STARTED BECOMING A NIGHTLY DESTINATION FOR YOUNG PEOPLE TO PARK THEIR CARS AND PARTY INTO ALL HOURS OF THE NIGHT. THIS ACTIVITY TAKES PLACE IN FRONT OF THE LOT THAT I OWN AT 7203 BABYLONIA STREET.

LAST WEEK, SECTIONS OF MY BRAND NEW FENCE WERE RIPPED APART IN THE FIRST THREE DAYS.

COLLECTIVELY, OUR COMMUNITY HAS PROBABLY BEEN CALLED CPD OVER TIMES.

HOWEVER, THE PROBLEM HAS GOTTEN WORSE AND WORSE.

IT SEEMS LIKE THIS PARTY DESTINATION HAS GONE VIRAL.

NEIGHBORS AND I PICK UP TRASH REMAINS LEFT IN THE STREET DAILY.

SOME OF THE TRASH SCATTERED ABOUT OUR BEER AND OTHER ALCOHOL BOTTLES, FAST FOOD CONTAINERS, CONDOMS AND EVEN NEEDLES. THE DEBRIS IS ALSO TOSSED IN THE DIRT, FLATTENED BRUSH ON THE SIDE OF THE STREET, INCLUDING

[00:15:08]

PERHAPS THE WORST PART IS THE LATE NIGHT VEHICLE CONGESTION AS THE REVELERS RACE UP AND DOWN THE STREET AS THEY COME AND GO. MANY HAVE LOUD, ILLEGALLY MODIFIED EXHAUST, AND THAT IN AND OF ITSELF CREATES A HUGE PUBLIC NUISANCE. IT SEEMS LIKE THEY DO 80 ON EL FUERTE AFTER BURNING OUT AS THEY LAUNCH FROM THE CORNER WITH BABYLONIA.

I AM GATHERING SIGNATURES INCLUDED IN THIS LETTER FROM NEIGHBORS TO ACT AS PETITION TO PRESENT TO THE CITY ASKING FOR MULTIPLE NIGHTLY POLICE VISITS IN WHICH WE BELIEVE THAT OFFICER NEEDS TO MAKE AS MANY DIRECT CONTACTS WITH THOSE KIDS AS POSSIBLE. THANK YOU.

HI, I'M KRYSIA. I LIVE IN CARLSBAD.

I ALSO HERE TO TALK ABOUT THE LETTER THAT WAS WRITTEN AND POSTED ON NEXT DOOR.

AGAIN, I AM VERY DISCOURAGED BY THE FACT THAT NOBODY'S ASKING FOR ANY KIND OF APOLOGY AT THE BARE MINIMUM OR SOME SORT OF, I DON'T KNOW, ACCOUNTABILITY BECAUSE OF THE LETTER THAT WAS WRITTEN BY PATEL SAYING THAT PARENTS THAT DO NOT AGREE WITH DEI, AGAIN, COMING FROM A COMMUNIST FAMILY FATHER, I DO NOT BELIEVE DEI IS THE DIVERSITY AND EQUITY AND INCLUSION PLAN THAT IT REALLY IS TRYING TO SAY IT IS. IT IS MORE AN OPPRESSIVE PLAN AND IT'S STRAIGHT OUT OF THE MARXIST BOOKS.

BUT IF I DISAGREE WITH THIS PLAN, SOMEHOW I AM NOW A WHITE SUPREMACIST.

THAT WORD RIGHT THERE IS SO HURTFUL AND INCITEFUL AND I JUST CAN'T EVEN COMPREHEND SOMEBODY USING THAT TERM TO CLASSIFY A PERSON THAT DOESN'T AGREE ON CERTAIN POLITICAL AGENDA, BECAUSE USING THAT TERM CAN CREATE VIOLENCE TOWARDS MYSELF OR THEN EVEN MY CHILDREN BECAUSE OF MY NAME BEING OUT THERE IN THE PUBLIC EYE. AND I EXPECT FOR SOMETHING TO HAPPEN FROM THIS.

THIS IS NOT ACCEPTABLE.

IF ANY OF YOU GUYS HAD USED A TERM THAT WAS HURTFUL OR THIS INCITEFUL AS A WHITE SUPREMACIST TERM, THEY WOULD ASK FOR YOU TO SAY SOMETHING AND APOLOGIZE AT THE BARE MINIMUM OR BE HELD ACCOUNTABLE AND HAVE SOMETHING HAPPEN.

AGAIN, THIS IS JUST NOT OKAY.

WE HAD THREE STUDENTS THAT WERE BRAVELY STOOD UP TO SAY THE COST THAT THIS INCURRED ON THE CITY BECAUSE THEY HAD TO HAVE EIGHT POLICEMEN THERE THAT NIGHT.

GOING BACK TO WHAT HE SAID IN MAY 8TH OR MARCH 8TH, EXCUSE ME ALSO, THAT THIS DOESN'T JUST AFFECT DISTRICT THREE, IT AFFECTS ALL OF CARLSBAD. WHAT YOU SAY SAY TO THE PUBLIC AFFECTS ALL OF US AND SOMEBODY NEEDS TO BE HELD ACCOUNTABLE.

THANK YOU. JADEN PRITTING.

HELLO, MY NAME IS JADEN ANGELOU PRITTING, AND I'M HERE TO PETITION FOR CARLSBAD VILLAGE STOP SIGN.

ON MADISON STREET.

GRANT AVENUE IS A DANGEROUS INTERSECTION AND IN NEED OF A STOP SIGN.

RIGHT NOW. CARS TRAVELING THROUGH GRANT AVENUE DO NOT STOP FOR PEDESTRIANS OR VEHICLES TRYING TO CROSS CRAVEN AVENUE AT MADISON.

BY PUTTING A STOP SIGN ON THE STREET, IT WILL HELP SO NOBODY GETS HURT FROM CARS CROSSING THE STREET.

IF A STOP SIGN WOULD BE PLACED THERE, THIS WOULD MAKE IT A FOUR WAY STOP.

MEANING ALL CARS AT ALL FOUR ENTRANCES, STOP AT THE INTERSECTION AND WILL HAVE TO MAKE A COMPLETE STOP BEFORE PROCEEDING THROUGH THE INTERSECTION.

EVERY OTHER DAY I CROSS THE STREET GETTING TO AND FROM MY JIU JITSU CLASS, AND EVERY DAY SOMEONE ALWAYS GOES THROUGH THE INTERSECTION WITHOUT STOPPING FOR PEDESTRIANS, MAKING IT VERY DANGEROUS.

I HOPE IF THE SIGN IS PUT THERE, EVERYONE WILL BE MUCH SAFER.

THANK YOU.

I THINK THE SPEAKERS WERE PRETTY QUICK.

SO I THINK WE HAVE TIME WITHIN THAT 15 MINUTES TO HEAR THE LAST SPEAKER.

ADAM BRUTOCHO.

[00:20:15]

MY NAME IS ADAM BRUTOCHO.

I'M A CARLSBAD RESIDENT.

I'M HERE TONIGHT ON BEHALF OF MYSELF AND OTHER RESIDENTS OF THE CANTERBURY COMMUNITY WHO HAVE BEEN IMPACTED BY FOUR MAJOR FLOODS THIS YEAR.

AS YOU CAN SEE FROM THE PHOTOS THAT I'VE HANDED OUT, THE FLOODING HAS BEEN QUITE SEVERE.

IT'S RESULTED IN AT LEAST $70,000 IN PROPERTY DAMAGE THIS YEAR AND WOULD HAVE BEEN MUCH WORSE IF NOT FOR MYSELF AND SEVERAL COMMUNITY MEMBERS WHO ASSISTED CITY WORKERS IN HAULING SANDBAGS TO HOMEOWNERS TO PROTECT THEIR PROPERTY.

PROPERTY DAMAGE IS A CONCERN, BUT I'M MUCH MORE CONCERNED ABOUT THE HEALTH AND SAFETY OF THE RESIDENTS IN THE COMMUNITY, INCLUDING MY CHILDREN.

AS I WAS WADING THROUGH WAIST HIGH WATER TO BRING SANDBAGS TO THE HOMEOWNERS, I COULDN'T HELP BUT THINK WHAT WOULD HAPPEN IF SOMEONE HAD A MEDICAL EMERGENCY.

CERTAINLY, I WOULD NOT BE ABLE TO GET MY FAMILY OUT TO SAFETY AND PARAMEDICS WOULD NOT BE ABLE TO ARRIVE ON THE SCENE.

SO MY PURPOSE HERE TONIGHT IS TO ASK FOR YOUR HELP.

HELP AND UNDERSTANDING THE SOURCE OF THE PROBLEM AND THE OBSTACLES THAT STAND IN THE WAY OF A PERMANENT SOLUTION, WHETHER THEY BE FINANCIAL, ENGINEERING, ENVIRONMENTAL OR POLITICAL.

TO THAT END, I ASK THAT YOU PROVIDE ME WITH THE MARCH 21ST BRIEFING THAT WAS PREPARED BY THE CITY MANAGER FOR COUNCILWOMAN LUNA OR A SUMMARY THEREOF.

I WILL FOLLOW UP TOMORROW WITH AN EMAIL TO THIS COUNCIL SUMMARIZING THE ISSUE AND REQUESTING THAT BRIEFING.

IN CLOSING, AGAIN, I ASK YOU, PLEASE HELP US.

GIVEN THE VERY REAL THREAT TO LIFE AND PROPERTY, I CAN THINK OF FEW MATTERS THAT THAT ARE MORE DESERVING OF THIS COUNCIL'S ATTENTION.

THANK YOU FOR YOUR TIME.

SIR? I'M GOING TO ASK YOU TO TALK WITH PAZ GOMEZ.

SHE'S WAVING TO YOU.

ABSOLUTELY. TALK TO HER OUTSIDE AND SHE'LL AT LEAST BE ABLE TO GET YOU IN THE RIGHT DIRECTION AND EXPLAIN WHAT WE ARE DOING, WHAT WE CAN AND CAN'T DO.

THANK YOU. I APPRECIATE YOUR TIME.

MY PLEASURE. NEXT IS CONSENT CALENDAR ITEMS ONE THROUGH FIVE.

[CONSENT CALENDAR]

THE CORRECTION IS THE WAY THAT THE ITEM CURRENTLY READS IS IT IS HAVING THE COUNCIL AUTHORIZE THE CITY MANAGER SLASH EXECUTIVE MANAGER TO APPROVE THE POLICY.

AND IN FACT, THEY'RE BEING DIRECTLY APPROVED BY THE COUNCIL AND THE WATER DISTRICT.

SO THE CHANGE IS JUST TO REFLECT THAT.

THANK YOU. DOES ANYBODY ON THE COUNCIL WANT TO PULL ANY ONE OF THE OF THE FIVE ITEMS? OKAY. LOOKING FOR A MOTION, PLEASE.

MOVE. APPROVAL. EXCUSE ME.

WE HAVE ONE SPEAKER.

OH, I'M SO SORRY.

THANK YOU FOR KEEPING ME IN LINE.

WE'LL CALL THE SPEAKER. GLENN BERNARD.

ITEM NUMBER ONE.

SO ITEM NUMBER ONE, SEWER LINES ON KELLY DRIVE.

I'VE GOT A PAIR OF TWO FOR ONES FOR YOU.

A PAIR OF THEM.

THE FIRST ONE.

AS LONG AS YOU'VE GOT THESE BIG OLD TRENCHES THAT ARE GOING TO GET DUG INTO KELLY DRIVE, I WANT TO DIRECT YOUR ATTENTION TO THE FACT THAT THE TWO FEATURES THAT WE HAVE IN CARLSBAD THAT LOOK LIKE TIJUANA ARE LOCATED ON KELLY DRIVE, REALLY CLOSE TO KELLY SCHOOL, THE ROUNDABOUTS.

AND SOMEBODY GOT DOWN ON THEIR KNEES WITH SOME PAINT AND PAINTED TWO ROUNDABOUTS BY KELLY SCHOOL.

WHAT AN INSULT. THERE'S BEAUTIFUL ROUNDABOUTS IN BRESSI RANCH AND.

AND THE CITY HAS ADDED MORE ATTRACTIVE ROUNDABOUTS AND A FEW MORE PLACES.

SO AS LONG AS YOU'RE SCOOPING OUT THE TRENCHES.

FOR SEWER LINES, GET SOME WATER LINES GOING TO THOSE TWO TIJUANA ROUNDABOUTS THAT ARE THERE ON KELLY DRIVE AND MAKE THEM NICE, MAKE THEM REAL, YOU KNOW, PUT FLOWERS IN THEM.

THE KIDS ARE GOING TO SCHOOL.

LET THEM SEE SOME COLOR.

[00:25:02]

OKAY. SO JACKHAMMERING AND DUST, RIGHT? A LOT OF NOISE. A LOT OF DUST COMING TO KELLY.

I'M GOING TO ASK YOU FOR A POLICY OR AN ORDINANCE ON SOMETHING LIKE JACKHAMMER.

I GOT ANOTHER MINUTE AND A HALF.

GIVE ME THE MINUTE AND A HALF.

JACKHAMMER. PICTURE A PERSON IN THIS ROOM WITH A JACKHAMMER RIGHT NOW.

BE DRIVING PEOPLE CRAZY.

PEOPLE BE RUNNING OUT. AND IF YOU HAD TO STAY AROUND IT FOR 24 HOURS, YOU'D BE DEAF.

WHEN PEOPLE GO OUT IN THE OCEAN AND THEY INSTALL WINDMILLS BECAUSE WIND POWER IS JUST WONDERFUL.

NO, IT'S HORRIBLE COMPARED TO SOLAR.

THE JACKHAMMER, THEY.

IT'S JACKHAMMERING THAT THEY DO TO GET THOSE POLES DOWN AND INSTALLED.

THAT NOISE CAUSES WHALES TO GO DEAF AND A DEAF WHALE IS A DEAD WHALE.

UNFORTUNATELY. JUST, YOU DON'T HAVE TO BELIEVE ME.

SO I WANT YOU TO PASS AN ORDINANCE OR A PROCLAMATION SIMILAR TO WHAT YOU DID A FEW YEARS AGO WHEN PETS WERE BEING SOLD IN RETAIL OUTLETS. THE STATE ACTED AND DID THE SAME THING AFTER CARLSBAD AND A FEW OTHER CITIES DID THE SAME THING.

I WANT YOU TO MAKE IT LIKE ILLEGAL OR WORDS TO THAT EFFECT ON PUTTING THOSE OUT THERE IN THE OCEAN.

I REALLY LOVE WHALES.

IN FACT, JUST A MONTH AGO, MY WIFE AND I WERE SOMEWHERE, WE'RE GOING IN A ZODIAC AND A WHALE CAME RIGHT NEXT TO OUR LITTLE ZODIAC.

AND WE. LOOK, YOU'RE LOOKING FOR A MOTION FOR CONSENT.

CALENDAR ITEMS. ONE THROUGH FIVE, PLEASE.

MOVE APPROVAL OF CONSENT ITEMS ONE THROUGH FIVE WITH THE CITY ATTORNEY'S COMMENTS NOTED.

SECOND. PLEASE VOTE.

PASSES UNANIMOUSLY.

ITEM NUMBER SIX CITY MANAGER, PLEASE.

YES, SIR. THANK YOU SO MUCH.

ITEM NUMBER SIX IS THE CARLSBAD HOUSING AGENCY 2023-24 PUBLIC HOUSING AGENCY ANNUAL PLAN AND REVISED ADMINISTRATIVE PLAN.

[6. CARLSBAD HOUSING AGENCY 2023-24 PUBLIC HOUSING AGENCY ANNUAL PLAN AND REVISED ADMINISTRATIVE PLAN]

BUT MAKING OUR PERFORMANCE OR OUR PRESENTATION TODAY IS OUR HOUSING AND HOMELESS SERVICES MANAGING DIRECTOR MANDY MILLS, ALONG WITH OUR HOUSING SERVICES MANAGER, CHRISTIAN GUTIERREZ.

GREAT. THANK YOU SO MUCH.

GOOD EVENING. OUR ITEM TONIGHT, AS ALREADY MENTIONED, IS A PUBLIC HEARING.

IT IS REQUIRED ANNUALLY.

WE HAVE TWO PLANS THAT ARE GOING TO BE CONSIDERED THIS EVENING.

ONE IS A ANNUAL PLAN FOR OUR PART OF OUR FIVE YEAR PLAN THAT WE HAVE TO UPDATE ANNUALLY.

AND THEN WE ALSO HAVE AN UPDATE TO OUR ADMINISTRATIVE PLAN.

AND BOTH OF THESE PLANS ARE RELATED TO OUR RENTAL ASSISTANCE PROGRAM, OF WHICH WE RECEIVE THE FUNDING THROUGH THE FEDERAL GOVERNMENT, HOUSING AND URBAN DEVELOPMENT.

AND I'M GOING TO TURN IT OVER TO CHRISTIAN GUTIERREZ, OUR HOUSING SERVICES MANAGER, TO GO OVER THE PLANS.

GOOD EVENING, MAYOR. MAYOR PRO TEM COUNCIL MEMBERS.

SO LIKE THE DIRECTOR STATED THIS EVENING, WE'RE HERE.

WE ARE HERE TO PRESENT THE CARLSBAD HOUSING AGENCY PHA PLAN AND ADMINISTRATIVE PLAN UPDATE.

SO THIS EVENING'S PRESENTATION WILL BE DIVIDED INTO TWO PARTS.

THE FIRST PRESENTATION WILL COVER THE ANNUAL PLAN AND THEN TRANSITION TO THE CARLSBAD HOUSING AGENCY'S ADMINISTRATIVE PLAN.

SO PURSUANT TO FEDERAL REGULATIONS, ONCE EVERY FIVE YEARS, EACH HOUSING AGENCY IS REQUIRED TO SUBMIT A FIVE YEAR PLAN TO HUD, AND EACH SUBSEQUENT YEAR, WE ARE REQUIRED TO SUBMIT AN ANNUAL PLAN OUTLINING ANY SIGNIFICANT CHANGES.

SO THE PURPOSE OF THIS PLAN IS TO PROVIDE A BASIC GUIDE TO THE AGENCY'S POLICIES AND RULES, AGENCIES, PROGRAMS, SERVICES AND OPERATIONS.

BUT MOST IMPORTANTLY, THE HOUSING AGENCY'S MISSION AND STRATEGIES TO ADDRESS THE NEEDS OF EXTREMELY LOW, VERY LOW AND LOW INCOME HOUSEHOLDS WITHIN THE COMMUNITY.

THE CURRENT FIVE YEAR PLAN WAS ADOPTED BY THE CITY COUNCIL ON APRIL 7TH, 2020.

EVERY PUBLIC HOUSING AGENCY IS REQUIRED EACH YEAR TO IDENTIFY ANY ELEMENTS OF THE PLAN THAT HAVE BEEN REVISED SINCE ITS LAST PLAN WAS SUBMITTED.

THE AREA THAT HAS BEEN UPDATED FOR THIS PERIOD IS THE UNDER FINANCIAL RESOURCES.

THE FUNDING RECEIVED FOR HOUSING ASSISTANCE PAYMENTS AND PROGRAM ADMINISTRATION, ADJUSTED FOR THE 2023 CALENDAR YEAR, HAS HAD A SLIGHT INCREASE OF ABOUT $68,000.

SO WE WILL NOW TRANSITION TO THE CARLSBAD HOUSING AGENCY'S ADMINISTRATIVE PLAN UPDATE.

SO PURSUANT TO THE FEDERAL REGULATIONS THAT GOVERN THE ADMINISTRATION OF THE HOUSING CHOICE VOUCHER PROGRAM, EVERY HOUSING AUTHORITY ACROSS THE COUNTRY IS REQUIRED TO PRODUCE

[00:30:05]

THE PURPOSE OF THE ADMINISTRATIVE PLAN IS TO PROVIDE A BASIC GUIDE TO THE AGENCY'S POLICIES AND PROCEDURES AND AN OVERVIEW OF OUR VARIOUS RELATED PROGRAMS AND SERVICES.

THIS ADMINISTRATIVE PLAN MUST BE APPROVED BY THE CITY COMMUNITIES DEVELOPMENT COMMISSION BEFORE BEING FINALIZED AND PUT INTO SERVICE.

SO THE REVISIONS CONTAINED IN THIS UPDATE DO NOT NEGATIVELY IMPACT THE PROGRAM PARTICIPANTS OR APPLICANTS.

THE UPDATED VERSION IS DESIGNED TO PROVIDE CORRECTIONS, HUD REQUIRED UPDATES AND STREAMLINE ADMINISTRATIVE PROCEDURES.

SOME OF THE NOTABLE CHANGES INCLUDED.

CHAPTER THREE. SEE UNDER LOCAL PREFERENCE AND DEFINITIONS.

THESE WERE POLICY UPDATES ON LOCAL PREFERENCES TO ENSURE ACCESS TO AFFORDABLE HOUSING FOR PRIORITY HOUSEHOLDS AND CHAPTER 13-J THE VIOLENCE AGAINST WOMEN REAUTHORIZATION ACT AND THIS UPDATED CHANGES TO CHANGES REFLECTING IN THE REAUTHORIZATION OF THE ACT IN 2022.

THE HOUSING COMMISSION, WHICH MAKES RECOMMENDATIONS ON HOUSING RELATED MATTERS, REVIEWED THE DRAFT REVISIONS AT A PUBLIC MEETING ON MARCH 16TH, 2023, AND VOTED TO RECOMMEND THE COMMUNITY DEVELOPMENT COMMISSION APPROVE THESE PRESENTED PLANS.

THE PROPOSED ACTION THIS EVENING IS FOR THE COMMUNITY DEVELOPMENT COMMISSION TO APPROVE THE 2023-24 PUBLIC HOUSING AGENCY ANNUAL PLAN AND THE REVISED ADMINISTRATIVE PLAN.

THIS CONCLUDES OUR PRESENTATION THIS EVENING.

DO WE HAVE ANY SPEAKERS? NO, WE DO NOT.

ANY QUESTIONS FROM COUNCIL? COMMENTS FROM COUNCIL.

YES. MRS. BHAT-PATEL? YES.

JUST BRIEFLY, THANK YOU SO MUCH FOR THE PRESENTATION AND I KNOW I HAD A CHANCE TO ASK SOME QUESTIONS DURING BRIEFING SPECIFICALLY AROUND THE INTERPRETATION SERVICES LANGUAGES AND ALSO THE VIOLENCE AGAINST WOMEN REAUTHORIZATION ACT.

AND I JUST WANTED TO SAY THAT IT'S HELPFUL TO HEAR SOME, AND I REALLY APPRECIATED THAT YOU ALL PROVIDED THAT DETAIL BECAUSE THERE'S SO MUCH THAT YOU ALL ARE DOING. AND THEN, OF COURSE, SO MUCH THAT WE'RE DOING TO MAKE SURE THAT FOLKS HAVE ALL THE RESOURCES AVAILABLE.

AND THEN THIS JUST TAKES THAT A STEP FURTHER TO ENSURE THAT IT'S CODIFIED.

SO I REALLY APPRECIATE ALL THE WORK THAT'S BEING DONE.

THANK YOU. THIS IS A PUBLIC HEARING, ALTHOUGH I DID CALL FOR SPEAKERS, IT'S ALSO OPEN TO ANYBODY WHO WISHES TO SPEAK ON THIS PARTICULAR ITEM.

SO I'M OPENING THE PUBLIC HEARING.

ANYBODY WOULD LIKE TO SPEAK ON IT.

YES, MA'AM. COME FORWARD.

THANK YOU. AND SORRY IT TOOK ME SO LONG TO WALK UP HERE.

I DID WANT TO SPEAK UP, AS FAR AS PRIORITY FOR PEOPLE.

THERE WERE SOME PEOPLE IN MY NEIGHBORHOOD WHO LIVE IN THE NEIGHBORHOOD WHERE A PACIFIC WINDS PROJECT IS DONE THAT IS SUPPOSED TO BE FOR LOW INCOME HOUSING.

I RAN INTO ONE OF THEM WHEN I WAS SHOPPING IN OCEANSIDE THE OTHER DAY, AND I JUST WANT TO MAKE SURE THAT PRIORITY IS GIVEN TO KEEP IN TOUCH WITH SOME OF OUR FORMER CARLSBAD LOW INCOME RESIDENTS.

GOOD KIDS, SOME OF THEM.

THIS ONE'S IN COLLEGE.

I MISS SEEING THEM AROUND.

AND HE SAID HIS FAMILY OF NONVIOLENCE TOWARDS WOMEN WOULD VERY MUCH LIKE TO MOVE BACK TO THE NEIGHBORHOOD.

PLEASE DON'T LEAVE TOUCH WITH GOOD PEOPLE WHO ARE OUR FORMER NEIGHBORS AND REPLACE THEM WITH PEOPLE FROM OTHER PLACES.

IF IT'S HARD TO KEEP TRACK OF THEM, THEY DO WANT TO COME BACK.

THANK YOU. ANY OTHER SPEAKERS? OKAY. SEEING NONE, I'M CLOSING THE PUBLIC HEARING.

ANY CLOSING STATEMENTS? MS. BURKHOLDER? YEAH. THANK YOU.

YOU GUYS CONTINUE TO DO REALLY TOUGH WORK OF HOLDING PEOPLE'S HANDS FOR A REALLY LONG TIME AND GETTING THEM SECURED INTO HOUSING.

AND I THINK I THINK THAT YOU DO ACTUALLY TRACK AND YOU CAN KIND OF STAY IN CONTACT WITH PEOPLE.

SO WE DON'T WANT TO FEEL LIKE ANYONE IS LEFT BEHIND.

BUT I KNOW THAT WHEN WE HAD OUR BRIEFING, I DID MENTION THE HUMAN TRAFFICKING ASPECT OF THIS.

AND SO JUST SO YOU KNOW, I WANT TO BE WORKING ON THIS END OF THINGS TO TRY TO GET THAT INTO AN ASPECT OF THE PROTECTION FOR WOMEN, BECAUSE WE KNOW THAT A LOT OF THOSE FOLKS ARE TRAFFICKED OR HOMELESS FEMALES, IN FACT.

SO THANK YOU FOR THAT.

YES, MS. ACOSTA. THANK YOU.

I JUST WANTED TO ADD MY GRATITUDE TO STAFF FOR YOUR HARD WORK.

IT WAS JUST A FEW YEARS AGO THAT WE HAD THIS WORK DISPERSED AMONGST DIFFERENT DEPARTMENTS, AND NOW WE HAVE THIS HOUSING AND HOMELESS SERVICES DEPARTMENT THAT CAN FOCUS THE WORK ON HOUSING AND AFFORDABLE HOUSING IN OUR COMMUNITY.

WE KNOW THAT MEMBERS OF OUR COMMUNITY ARE VERY CONCERNED AND LOOKING FOR MORE AFFORDABILITY IN OUR HOUSING OPTIONS.

[00:35:01]

THANK YOU FOR ALL YOUR HARD WORK.

AND OBVIOUSLY A LOT OF THIS IS COMPLIANCE AND DILIGENCE IN THAT WE WE NEED TO MATCH UP WITH THE LAW THAT IS OUT THERE.

SO JUST THANK YOU FOR STAYING ON TOP OF IT.

MS. LUNA? THANK YOU. OKAY.

LOOKING FOR MOTION FOR THE ADOPTION OF TWO RESOLUTIONS.

MOVE APPROVAL OF BOTH RESOLUTIONS AND AGENDA ITEM SIX.

SECOND, PLEASE VOTE.

PASSES UNANIMOUSLY. THANK YOU VERY MUCH.

ITEM NUMBER SEVEN CITY MANAGER.

[7. DECLARATION OF A STORM RELATED LOCAL EMERGENCY FOR REPAIR OF A SINKHOLE ON HAYMAR DRIVE]

AND MAKING OUR PRESENTATION TODAY IS OUR TRANSPORTATION DIRECTOR, TOM FRANK.

SIR. THANK YOU, SIR, AND GOOD AFTERNOON, MAYOR, MAYOR PRO TEM AND CITY COUNCIL MEMBERS.

I WILL BE PRESENTING THE RATIFICATION OF A DECLARATION OF LOCAL EMERGENCY FOR THE REPAIRS OF A SINKHOLE IN THE AREA OF HAMER DRIVE.

TODAY'S RECOMMENDED ACTION IS TO ADOPT THE RESOLUTION CONFIRMING THE CITY MANAGER'S DECLARATION OF A LOCAL EMERGENCY FOR THE REPAIR OF A SINKHOLE IN THE AREA OF HAMER DRIVE.

ON SATURDAY, MARCH 18TH, ABOUT 4:30 P.M., THE TRANSPORTATION DEPARTMENT STAFF INVESTIGATED A SINKHOLE ON HAMER DRIVE, WEST OF EL SALTO FALLS ROAD.

STAFF DETERMINED THAT THE SINKHOLE WAS LIKELY CAUSED BY A FAILED STORM DRAIN PIPE CARRYING RUNOFF ACROSS THE ROAD.

THE UTILITIES DEPARTMENT WAS ALSO CALLED BECAUSE THE VISTA CARLSBAD SEWER INTERCEPTOR PIPELINE IS ABOVE THE FAILED STORM DRAIN.

THE SEWAGE CARRIES WASTEWATER TO THE ENCINA'S WASTEWATER TREATMENT PLANT.

AT THE SINKHOLE SITE THE INTERSECTION, THE INTERCEPTOR IS A 36 INCH DUCTILE IRON PIPE THAT CARRIES AN AVERAGE FLOW BETWEEN 5 MILLION GALLONS PER DAY AND A PEAK WET WEATHER FLOW OF ABOUT 15 MILLION GALLONS PER DAY.

STAFF CONTACTED CALTRANS TO INQUIRE IF THEY WOULD BE ADDRESSING THE DETERIORATED STEEL CULVERT AS A PART OF THEIR LARGER PROJECTS THAT THEY'RE WORKING ON ON THE WESTBOUND LANES, HOPEFULLY SOON TO BE THE EASTBOUND LANES ON STATE ROUTE 78.

ALTHOUGH CALTRANS IS REHABILITATING THEIR SEGMENT OF THE CULVERT LOCATED WITHIN ITS RIGHT OF WAY, IT HAS NO PLANS TO REPAIR THE FAILED CULVERT LOCATED IN HAMER DRIVE.

CALTRANS THEN PROVIDED DOCUMENTS ON MARCH 23RD THAT INDICATED THAT THE STATE RELINQUISHED THE PROPERTY THE RIGHT OF WAY IN HAMER DRIVE TO THE CITY BACK IN 1967. CALTRANS ASSERTS THAT THE RELINQUISHMENT INCLUDES THE STORM DRAINS AND THESE DOCUMENTS ARE PROVIDED IN THE STAFF REPORT AS EXHIBIT FOUR.

THE CITY MANAGER DECLARED A LOCAL EMERGENCY TO MAKE IMMEDIATE REPAIRS TO THE SINKHOLE.

SIX DAYS LATER, ON MARCH 24TH.

IN ADDITION, STAFF MET WITH FOUR CONTRACTORS TO OBTAIN BIDS FOR THE CULVERT REPAIR ON MARCH 24TH, THE SAME DAY.

WE REALLY JUMPED TO ATTENTION KNOWING WE HAD TO ADDRESS THIS EMERGENCY.

THE ENTIRE CITY TEAM, WITH HELP FROM ALL OF OUR DEPARTMENTS, REALLY JUMPED TO ACTION.

WE WERE, OF COURSE, COMPLETING THE DECLARATION, GETTING THE CITY MANAGER TO SIGN IT, AND THEN WORKING ON THIS STAFF REPORT, WHICH IS IN YOUR PACKET, IN ADDITION TO REPAIRING THE FAILED CULVERT.

SO IT WAS A LOT GOING ON.

AND I HAVE TO SAY I REALLY APPRECIATE EVERYBODY JUMPING IN AND ESPECIALLY A SUPER HEAVY LIFT FROM OUR AMAZING CITY ATTORNEY'S OFFICE.

SO THANK YOU.

MARCH 28TH, DURING THE COURSE OF THE CONTRACTOR, WORK, STAFF DETERMINED THAT THE REPAIR PROCESS USING CORRUGATED METAL PIPE AND A CURE IN PLACE PIPELINE OR PIPE REPAIR WOULD PROVIDE THE APPROPRIATE REPAIR AND WAS MORE FEASIBLE BASED ON HOW CLOSE THE BREAK WAS TO THE ACTIVE SEWER LINE.

WITH RAIN FORECAST MARCH 29TH, JUST IN, WITHIN THE NEXT WEEK, WE DIRECTED THE CONTRACTOR TO PROCEED WITH A JOINT REPAIR OF THE FAILED SECTION OF THE CULVERT AND SECURE THE TRUNK SEWER.

THE CONTRACTOR COMPLETED THE INITIAL PHASE OF THE EMERGENCY WORK ON MARCH 29TH PRIOR TO THE HEAVY RAIN EVENT.

THE CURE IN PLACE LINING AND THE NEW STRUCTURE ON THE ASSERTED RELINQUISHMENT LINE IS BEING PLANNED FOR THE NEXT PHASE OF WORK.

STAFF IS COORDINATING CLOSELY WITH ALL AGENCIES INVOLVED, MAINLY CALTRANS AND THE CITY OF VISTA AND OF COURSE, THE AFFECTED RESIDENTS.

SO THIS PICTURE IN FRONT OF YOU, I THINK, IS A GOOD PERSPECTIVE TO SHOW THE RELATIONSHIP OF OUR WORK ON HAMMER DRIVE, OUR EMERGENCY WORK.

AND IT'S A LITTLE SMALLER THAN I HAD HOPED.

BUT YOU CAN SEE TOWARDS THE RIGHT, YOU CAN SEE AN EXCAVATOR DOWN ON ON WHAT IS SHOWN IN HAMMER DRIVE.

[00:40:06]

SO THAT'S OUR REPAIR WORK.

AND THEN BEHIND THAT, UP ON THE HIGHER ELEVATION, WHICH IS STATE ROUTE 78 TO THE LEFT.

AND ALONG THAT ENTIRE SEGMENT, THAT'S ALL OF CALTRANS WORK.

SO JUST TO GIVE YOU A PERSPECTIVE OF OF THE REPAIRS WE'RE DOING.

PER CARLSBAD MUNICIPAL CODE 6.04.

THE CITY MANAGER IS AUTHORIZED TO DECLARE A LOCAL EMERGENCY WHEN CONDITIONS EXIST THAT PRESENT EXTREME PERIL TO THE SAFETY OF PERSONS OR PROPERTY WITHIN THE CITY, OR WHEN SUCH CONDITIONS ARE BEYOND THE CONTROL OF SERVICES, PERSONNEL, EQUIPMENT AND FACILITIES OF THE CITY, AND REQUIRE COMBINED FORCES OF OTHER POLITICAL SUBDIVISIONS.

THE DECLARATION OF THE THE PUBLIC EMERGENCY IN FRONT OF YOU TODAY IS BASED ON CALTRANS RELINQUISHED THE RIGHT OF WAY AT THE SINKHOLE SITE TO THE CITY IN 1967 AND HAS NO PLANS TO REPAIR THE CULVERT SEGMENT LOCATED WITHIN THE CITY RIGHT AWAY.

THE SINKHOLE APPEARS TO BE THE CAUSE OF THE FAILED CULVERT LOCATED WITHIN THE CITY RIGHT OF WAY, WHICH THREATENS TO UNDERMINE THE CRITICAL SEWER PIPELINE.

AND INFRASTRUCTURE AND IMMEDIATE REPAIRS ARE NEEDED TO STABILIZE THE SINKHOLE SITE AND REPAIR THE FAILED STORM DRAIN TO PREVENT POTENTIAL SPILLAGE.

TO SUMMARIZE OUR REMEDIATION ACTIONS, STAFF ENGAGED THE SERVICES OF A CONTRACTOR, DB PIPELINE, INC.

TO MAKE THE NEEDED REPAIRS.

WE ENGAGED AN ENGINEERING FIRM RIGHT AWAY ENGINEERING TO PERFORM THE NECESSARY SURVEYING ASSOCIATED WITH THE REPAIRS AND DETERMINE THE ASSERTED RELINQUISHED LINE AND WORK STARTED ON MARCH 27TH AND AND IS CURRENTLY ESTIMATED.

AT $280,000.

AND SO REGARDING THE RATIFICATION PROCESS, THE DECLARATION OF LOCAL EMERGENCY WAS RATIFIED BY THE CITY COUNCIL AND SEVEN DAYS OR WITHIN SEVEN DAYS TO HAVE FURTHER FORCE AND EFFECT AND THEN WANTED TO MOVE ON TO THE NEXT STEPS UNDER THE LOCAL EMERGENCY.

STAFF HAS BEGUN PREPARING THE EMERGENCY CONTRACT AND WILL BE PRESENTED FOR RATIFICATION TO THE CITY COUNCIL AT A FUTURE DATE.

THE NEXT PHASE OF THE WORK FOR COMPLETING THE REPAIR FOR THE ENTIRE SEGMENT OF THE PIPELINE WITHIN THE CITY RIGHT OF WAY IS EXPECTED TO BE COMPLETED WITHIN 6 TO 8 WEEKS, WHICH WOULD BRING THE COMPLETION TO POSSIBLY THE BEGINNING OF JUNE.

THE LONGER COMPLETION DATE IS REALLY TIED TO A LONG LEAD TIME ITEM FOR MAKING THE NECESSARY REPAIRS FOR THE CURE IN PLACE PIPELINE LINER.

AGAIN, THAT THAT IN PLACE PIPELINE LINER WILL HAVE THE LEAST IMPACT TO THE PUBLIC AND THE LEAST DISRUPTION FOR SERVICES.

PLUS IT'S AN EXCELLENT REPAIR FOR THAT CULVERT.

SO A LOT OF THAT TIME IS SPENT JUST WAITING FOR THAT LINER TO BE MADE AND DELIVERED TO THE CITY.

WE ARE TARGETING THE INSTALLATION OF A NEW DRAINAGE STRUCTURE ON THE ASSERTED RELINQUISHED RIGHT OF WAY LINE WITHIN THE NEXT TEN WORKING DAYS.

AND THE CONTRACTOR WILL THEN VIDEO THE ENTIRE CULVERT TO CONFIRM OUR APPROACH USING THE CURED IN PLACE LINER REPAIR FOR THE ENTIRE CULVERT WITHIN HAMMER DRIVE.

STAFF IS WORKING TOWARDS AUTHORIZING THE CONTRACTOR TO BEGIN THE FABRICATION FOR THE CURE IN PLACE LINER, WHICH IS ESTIMATED TO TAKE THAT FOUR WEEKS.

STAFF WILL RETURN TO CITY COUNCIL ON APRIL 11TH TO REVIEW THE EMERGENCY ACTIONS AND ASK CITY COUNCIL TO DETERMINE A 4/5 VOTE WHETHER THERE IS A NEED TO CONTINUE IT OR WE WILL LIKELY BE RECOMMENDING THE CONTINUANCE OF THE EMERGENCY CONSIDERATION, CONSIDERING THE PLANS WHICH YOU HAD JUST HEARD.

SO I'LL END MY PRESENTATION AGAIN WITH OUR RECOMMENDED ACTION TONIGHT, WHICH IS TO ADOPT A RESOLUTION CONFIRMING THE CITY MANAGER'S DECLARATION OF A LOCAL EMERGENCY FOR THE REPAIR OF THE SINKHOLE AND THE AREA OF HAMER DRIVE.

AND WE ARE HAPPY TO ANSWER ANY QUESTIONS.

THANK YOU. DO WE HAVE ANY SPEAKERS? THERE ARE NO SPEAKERS ON THIS ITEM.

THANK YOU. I'LL START WITH THE QUESTIONS.

HELP ME UNDERSTAND THIS.

IS THIS THE SAME TYPE OF PIPE THAT'S ON THE 78 THAT FAILED, OR IS THIS PART OF THAT SAME PROJECT? YES, SIR, IT IS.

IT'S ACTUALLY THE SAME CULVERT.

IT WAS INSTALLED BACK IN 1956 FROM THE RECORD DRAWINGS WHICH THEY PRODUCED.

SO WHAT'S DELINEATING OUR RESPONSIBILITY VERSUS WHAT THEY'RE REPAIRING WITHIN THEIR RIGHT OF WAY IS THE DOCUMENT THEY PROVIDED, WHICH SHOWED A RELINQUISHMENT TO THE CITY BACK IN 1967. WHAT THE NEWS SAID.

I DON'T KNOW IF IT'S ACCURATE OR NOT.

SAID WHEN IT WAS ORIGINALLY INSTALLED, IT HAD A 50 YEAR LIFE.

THAT 50 YEAR LIFE IS LONG PAST.

IS THAT ACCURATE? THAT'S ACCURATE.

[00:45:01]

IS IT JUST A SMALL PORTION OR DOES IT RUN THE ENTIRE LENGTH OF HAMMER? MY QUESTION IS, ARE WE GOING TO KEEP HAVING THESE SAME PROBLEMS AS IT FAILS IN DIFFERENT AREAS? YES. SO THIS IT ACTUALLY CROSSES HAMMER, SO IT'S PERPENDICULAR TO IT.

SO IT'S IT'S THAT CULVERT ITSELF IS NOT A REALLY LONG RUN.

WE'RE PROBABLY TALKING 60FT ISH, PROBABLY 50 TO 60FT.

SO THERE IS A CONCERN, THOUGH, THAT THERE ARE OTHER CULVERTS WHICH WHICH CALTRANS IS REPAIRING ON THE 78.

AND WE JUST RECEIVED RECORD DRAWINGS ON ON OTHER CROSSINGS.

SO WE'RE INVESTIGATING WHAT THAT MEANS FOR THE RELINQUISHED LINE AND WHAT THAT MEANS FOR US, FOR THE CITY.

AND TELL ME WHAT THAT LINE CARRIES.

DID YOU SAY THAT'S WASTEWATER? NO, SIR. THE THE THESE.

CORRUGATED METAL PIPE IS CONVEYING STORMWATER RUNOFF.

IS IT JUST FROM OUR CITY OR IS IT FROM OTHER CITIES AS WELL? NO, IT'S ACTUALLY TAKING RUNOFF NORTH OF OUR CITY.

SO CALTRANS RIGHT AWAY AND POSSIBLY SOME OCEANSIDE DRAINAGE WITHIN THE WATERSHED.

WOULD THEY BE RESPONSIBLE FOR PARTICIPATING IN THE COST? NO, THEY ARE.

WELL, THAT'S TO BE DETERMINED.

OUR CITY ATTORNEY'S OFFICE IS REVIEWING THE MATTER.

GOOD AFTERNOON, SIR. PAZ GOMEZ, DEPUTY CITY MANAGER FOR PUBLIC WORKS.

I JUST WANTED TO ADD IN THAT THE SEWER LINE THAT WAS BEING REFERENCED IS A SEPARATE 36 INCH LINE THAT IS PARALLEL TO HAMMER DRIVE.

SO THERE ARE TWO LINES.

THE ONE THAT WE WERE REPAIRING WAS THE STORM DRAIN PIPE, A 24 INCH, AS MR. FRANK DESCRIBED.

BUT WHAT WE WERE TRYING TO DO IS PRESERVE THAT 36 INCH SEWER LINE THAT PROVIDES SEWAGE FROM VISTA THAT WAS CROSSING OVER THAT WOULD EVENTUALLY GO OVER TO THE ENCINA WASTEWATER AUTHORITY PLANT.

AND I ASSUME THAT'S A MUCH NEWER LINE THAT WE DON'T HAVE TO WORRY ABOUT IT HITTING ITS LIFE.

I DON'T HAVE AN EXACT DATE OF WHEN THAT WAS, BUT THAT IS OUR INFRASTRUCTURE ARE ALL OLDER, SO I WOULDN'T NECESSARILY SAY THAT IT WAS NEWER.

SO BUT WE CAN PROVIDE THAT INFORMATION IF YOU WOULD LIKE.

THANK YOU. QUESTIONS FROM COUNCIL.

YES. MR ACOSTA.

THANK YOU. I JUST WANTED TO CLARIFY, I IN HEARING ABOUT HOW THIS WAS QUICKLY ACTED UPON, IT'S VERY IMPRESSIVE.

AND I UNDERSTAND THAT AS PART OF THIS QUICK ACTION COUNCIL HAS TO DECLARE THIS EMERGENCY, WHICH IT SOUNDS LIKE IT ABSOLUTELY WAS.

AND I WAS WONDERING WHERE THE FUNDS THIS PROJECTED $280,000 COMES FROM.

THANK YOU, COUNCIL MEMBER, FOR THAT QUESTION.

THE CITY ACTUALLY HAS A CAPITAL IMPROVEMENT PROGRAM FOR OR THE REPLACEMENT AND REPAIR OF OUR OF OUR STORM DRAIN INFRASTRUCTURE.

SO THAT'S WHERE THE THE FUNDS ARE COMING FROM.

AND WE DO HAVE ADEQUATE FUNDING IN THAT PROGRAM.

OKAY. SO SOMETHING ELSE DOESN'T HAVE TO BE DEPRIORITIZED IN ORDER TO PAY FOR THIS AND.

NO, NO. COUNCIL MEMBER.

OKAY, GREAT. THANK YOU.

ANY OTHER QUESTIONS, MISS BURKHOLDER? I JUST WANT TO CLARIFY FOR THE PUBLIC, SAY TWO, I'M DECLARING THIS EMERGENCY FOR THIS ISSUE AND WE HAVE POTENTIAL TO GET REIMBURSED FOR SOME OF THE EXPENDITURES POTENTIALLY, RIGHT? THAT'S CORRECT. COUNCIL MEMBER WE'RE LOOKING FOR FUNDING OPPORTUNITIES TIED TO THE EMERGENCY RESPONSE.

OKAY. THANK YOU. I JUST WANTED THAT CLARIFICATION OUT LOUD.

ANY OTHER QUESTIONS? COMMENTS? MISS LUNA.

SO, MR. FRANKEN, ARE WAS FLOODING SEASON ARE BECOMING VERY GOOD FRIENDS IN THE SECOND DISTRICT.

MR BLACKBURN AS IT SEEMS LIKE EVERY WATERSHED IS LOCATED IN THIS DISTRICT AND FLOODING IS OCCURRING.

MY TIMING IS TERRIBLE BECAUSE IT SEEMS LIKE THIS IS THE YEAR THAT EVERYTHING IS HAPPENING IN THE SECOND DISTRICT.

SO I DO WANT TO COMPLIMENT PAS AND MR. FRANK AND OUR CITY ATTORNEY'S OFFICE.

WHAT YOU'RE NOT SEEING AND WHAT THEY'RE NOT SAYING IS ALL OF THE WORK THAT NEEDED TO BE DONE TO GET THIS TO AN EMERGENCY DECLARATION, TO GET THE CONTRACTORS PUT ON BOARD.

HE LOOKS LIKE A DUCK AND IS JUST SWIMMING.

BUT UNDERNEATH HE AND THE CITY ATTORNEY'S OFFICE AND HIS STAFF AND OTHER STAFF THAT PARTICIPATED, THE DUCK FEET ARE GOING CRAZY UNDERNEATH AND THEY PACKAGE IT UP VERY NEATLY FOR US IN A BOW AND DROP IT OFF HERE.

AND UNFORTUNATELY, WE DID HAVE A PROJECT OR FORTUNATELY SO I AM FAMILIAR WITH THIS EXTENSION.

AND I CAN TELL YOU AS A NON ENGINEER THAT I THINK HE'S HE'S HE'S GOT THE RIGHT RIGHT STUFF TO DO THIS.

SO I WOULD LIKE TO EXTEND GREAT APPRECIATION.

[00:50:03]

AND SO WHAT YOU'RE SEEING HERE IS A VERY HUMBLE STAFF.

SO THANK YOU.

CITY ATTORNEY'S OFFICE, WITHOUT CINDY'S OFFICE DOING A LOT OF THE LEGWORK.

WE WE DON'T WE DON'T WE AREN'T ELIGIBLE OR CAN'T GET CERTAIN THINGS FOR THE CITY WITHOUT THEM.

SO THANK YOU VERY MUCH.

THANK YOU. NEED A MOTION FOR THE ADOPTION OF THE RESOLUTION.

MOVE APPROVAL OF THE RESOLUTION AND AGENDA ITEM NUMBER SEVEN.

SECOND, PLEASE VOTE.

PASSES UNANIMOUSLY. THANK YOU.

[8. CITY FINANCIAL STATUS UPDATE]

YES, SIR. ITEM NUMBER EIGHT IS THE CITY FINANCIAL STATUS UPDATE.

MAKING THE PRESENTATION TONIGHT WILL BE MYSELF, ALONG WITH OUR FINANCE DIRECTOR, ZACH.

AND AS I SAID, I'M GOING TO BE KICKING THIS OFF, SO.

PERFECT. WELL, THIS IS PART OF A NEW RIGOR FOR ADDED TRANSPARENCY THAT WE HAVE APPLIED TO OUR CITY BUDGET PROCESS AND MANAGING THE CITY'S OVERALL FINANCIAL HEALTH.

NEXT MONTH, STAFF WILL BE PRESENTING A PRELIMINARY BUDGET FOR CITY COUNCIL'S CONSIDERATION IN PREPARATION OF THAT DISCUSSION TONIGHT.

WE'LL PRESENT YOU AN UPDATE ON THE CITY'S FINANCIAL HEALTH.

THE PRESENTATION IS A LITTLE DIFFERENT FROM OUR REGULAR FINANCIAL UPDATES, WHICH TEND TO FOCUS MORE ON OUR CURRENT FINANCIAL CONDITION.

TONIGHT, WE WANT TO FOCUS ON OUR LONGER TERM FINANCIAL FORECAST, WHICH CONTINUES TO SHOW A POTENTIAL DEFICIT WITHIN THE NEXT FIVE YEARS.

NOW WE'RE GOING TO GO OVER THE STEPS THAT WE'VE ALREADY TAKEN TO HELP CLOSE THIS GAP.

AND WE ALSO WILL GO OVER OPTIONS THE CITY COUNCIL MAY WANT TO CONSIDER TO ENSURE WE CAN CONTINUE TO PROVIDE THE HIGH LEVEL OF SERVICE OUR COMMUNITY HAS COME TO EXPECT LONG INTO THE FUTURE. NOW, I KNOW YOU'VE SEEN THIS SLIDE BEFORE AND FOR MANY YEARS WE'VE KNOWN THAT WE WERE APPROACHING A TIME WHEN MOST OF THE MAJOR NEW DEVELOPMENT IN THE CITY IS BUILT.

AT THAT POINT, WE BEGIN TO SHIFT OUR FOCUS FROM MAINTAINING THIS AMAZING CITY THAT WE'VE CREATED.

NOW, AS CARLSBAD ENTERS THIS NEW PHASE OF LIFE, THE NEEDS AND CHALLENGES ARE GOING TO BE A LITTLE DIFFERENT.

NOW, THIS IS NOT UNIQUE TO CARLSBAD.

ALL CITIES REACH A POINT IN LIFE WHEN THEY NEED TO SHIFT THEIR FOCUS FROM BUILDING TO MAINTAINING.

AND HERE ARE SOME OF THE COMMON WAYS THAT CITIES CLOSE THAT BUDGET GAP THAT TENDS TO COME ALONG WITH THE STAGE IN LIFE.

NOW, OBVIOUSLY, THE MOST OBVIOUS IS TO DRIVE MORE EFFICIENCY OUT OF THE OPERATION, BASICALLY DEFINED MORE WITH LESS.

AND THIS IS A RIGHT PLACE TO START.

WE HAVE AND WILL CONTINUE TO DRIVE EFFICIENCY IN OUR OPERATIONS, BUT RARELY IS THAT ENOUGH TO BE ABLE TO WEATHER THE STORM.

NOW, SOME OF THE NEXT OPTIONS INCLUDE LOOKING AT THE AMOUNT WE'RE CURRENTLY SUBSIDIZING CITY SERVICES.

CITY COUNCIL RECENTLY APPROVED A NEW FEE POLICY TO ENSURE THAT WE HAVE A STRATEGIC APPROACH TO HOW MUCH THE COST OF PROVIDING SERVICES CAN BE REASONABLY RECOVERED. AND OF COURSE, NO ONE LIKES TO TALK ABOUT DECREASE IN A SERVICE LEVEL, BUT THAT IS A REALITY FOR A LOT OF CITIES.

YOU WILL SEE THE BUDGET WE PRESENT TO YOU NEXT MONTH WITH SOME MODEST PROPOSALS FOR REDUCTION IN SERVICE.

ABSENT ANOTHER SOLUTION, YOU'LL SEE ADDITIONAL REDUCTIONS IN THE COMING BUDGET YEARS UNTIL WE RESOLVE THE PROJECTED STRUCTURAL DEFICIT.

NOW, THE FINAL OPTION WE HAVE IS TO FUND OR FIND NEW SOURCES OF REVENUE.

AND TODAY WE'LL REVISIT SOME OF THOSE OPTIONS THAT WE'VE SHARED, AS WELL AS PROVIDE AN ADDITIONAL ONE.

BUT BEFORE WE GET TO THAT, I, I REALLY DO.

I AND QUITE FRANKLY, I CAN'T LOOK ANY OF YOU IN THE EYE WITHOUT SAYING THAT I HAVE A JOB TO DO.

IT IS MY PROFESSIONAL RESPONSIBILITY TO ADVISE COUNCIL ON THE CITY'S FINANCES.

AND I TAKE THAT THAT JOB VERY SERIOUSLY, AS DO THE REST OF OUR STAFF.

SO CARLSBAD HAS ALWAYS BEEN KNOWN FOR A BEAUTIFUL ENVIRONMENT, WELL MAINTAINED INFRASTRUCTURE, AND OF COURSE, ITS HEALTHY FINANCES.

BUT IF YOU'RE LOOKING A LITTLE CLOSER, WE COULD SEE IT WAS TIME TO TAKE A FRESH LOOK AT OUR FOUNDATION.

THIS IS GOING TO BE A WHOLE HOUSE METAPHOR, SO SPARE WITH ME.

[00:55:02]

NOW, IT ISN'T TO SAY THAT ANYTHING IN THE PAST WAS DONE WRONG.

IT'S JUST TIME.

THINGS AGE.

SO WE LIFTED UP THE HOUSE TO TAKE A CLOSER LOOK AND THEN BEGAN A VERY METHODICAL PROCESS TO SHORE UP OUR FUTURE FINANCIAL HEALTH.

I WANT TO TOUCH BRIEFLY ON SOME OF THE CORE ELEMENTS OF THIS NEW FOUNDATION.

ONE OF THE MOST IMPORTANT PIECES WAS A SET OF NEW POLICIES THAT CITY COUNCIL PASSED OVER THE LAST FIVE YEARS.

THESE INCLUDED TIGHTENING CONTROL OVER THE GENERAL FUND RESERVE, A NEW PENSION FUNDING POLICY, ESTABLISH WISHING AN ECONOMIC UNCERTAINTY RESERVE, CREATING A NEW COST RECOVERY POLICY, A POLICY FOR HOW TO REINVEST SURPLUS FUNDS, AND RECOGNIZING THAT DEDICATING ONGOING FUNDING FOR DIGITAL INFRASTRUCTURE WAS BECOMING JUST AS IMPORTANT AS OUR PHYSICAL INFRASTRUCTURE.

AND OVER THE LAST FIVE YEARS, STAFF HAVE ALSO PUT IN PLACE AN INCREASED LEVEL OF RIGOR IN HOW WE DEVELOP AND MANAGE OUR ANNUAL BUDGET.

AND THAT'S STARTING WITH TRANSFORMING OUR BUDGETING PROCESS, REQUIRING MORE DATA TO JUSTIFY SPENDING, GETTING RID OF AUTOMATIC INCREASES TO INFLATION, ELIMINATING DEPARTMENT CONTINGENCY BUDGETS AND REINVESTING THOSE UNSPENT FUNDS INTO CITY COUNCIL PRIORITIES.

WE CREATED A NEW INTERNAL AUDITOR PROGRAM, TAKING A TOTALLY NEW APPROACH TO HOW WE PLAN AND FUND OUR MAJOR CONSTRUCTION PROJECTS AND ALLOWING NEW STAFFING ONLY WHEN REQUIRED BY A NEW.

REGULATION OR A CITY COUNCIL PRIORITY.

WE'VE ALSO ENGAGED A GRANT WRITER AND FEDERAL AND STATE LOBBYISTS TO ENSURE THAT WE'RE TAKING ADVANTAGE OF OPPORTUNITIES FOR STATE AND FEDERAL FUNDING.

SO ALL OF THESE EFFORTS FREED UP FUNDING FOR NEW PROGRAMS REQUESTED BY THE COMMUNITY AND ALLOWED US TO REDUCE OUR OVERALL SPENDING BY ABOUT 3% IN LAST YEAR'S BUDGET AT A TIME WHEN INFLATION WAS AT ABOUT 8%.

NOW, THE BUDGET WE PLAN TO PRESENT NEXT MONTH WILL SHOW A SIMILAR DECREASE IN SPENDING WHILE MAINTAINING THAT HIGH LEVEL OF SERVICE.

AND I THINK IT'S SAFE TO SAY THAT PENSION COSTS ALSO KEEP OUR CITY LEADERS UP AT NIGHT.

I KNOW IT DOES. FOR ME, THAT'S BECAUSE THE COST TO PROVIDE THE BENEFITS PROMISED TO RETIREES IS OFTEN GREATER THAN THE AMOUNT OF MONEY AVAILABLE TO PAY FOR THOSE BENEFITS.

NOW, THIS IS DUE TO A LOT OF FACTORS, INCLUDING THE FACT THAT PEOPLE ARE LIVING LONGER.

SO THE AMOUNT ALSO FLUCTUATES BECAUSE IT'S DEPENDENT ON HOW WELL THE PENSION FUNDS ARE INVESTED.

NOW, OBVIOUSLY WE DON'T HAVE CONTROL OVER THAT, BUT THE STATE DOES.

NOW, AGAIN, THE CITY OF CARLSBAD SAW THIS COMING AND WAS ONE OF THE FIRST IN THE REGION TO IMPLEMENT PENSION REFORM.

THIS MEANS WE CREATED A LOWER BENEFIT LEVEL AND INCREASED COSTS.

THE COST SHARE FOR OUR EMPLOYEES.

ANOTHER WAY TO REDUCE THE CITY'S LONG TERM PENSION COSTS IS BY MAKING EARLY PAYMENTS TO REDUCE THE PENSION DEBT.

IN 2019, CITY COUNCIL ADOPTED A PENSION FUNDING POLICY THAT STATES THAT THE CITY WILL STRIVE TO MAINTAIN AN 80% FUNDED RATIO.

SAID ANOTHER WAY THE GOAL OF THIS POLICY IS TO ENSURE THAT CARLSBAD'S PENSION DEBT DOESN'T EXCEED MORE THAN 20%.

SO WE'RE CURRENTLY TIED WITH CORONADO AND THE REGION FOR HAVING THE LOWEST PENSION DEBT AGAIN IN THE REGION.

NOW, CITY COUNCIL HAS ALSO MADE VOLUNTARY CONTRIBUTIONS TOWARDS OUR PENSION DEBT A TOTAL OF $56.4 MILLION SINCE 2016.

BY MAKING THOSE STRATEGIC INVESTMENTS, CITY COUNCIL HAS REDUCED THE AMOUNT OF MONEY WE'LL HAVE TO PAY OVER TIME IN INTEREST.

NOW, STAFF WILL CONTINUE RESEARCHING AND DEVELOPING A PROPOSED FUNDING PLAN FOR THE ESTABLISHMENT OF A SECTION 115 TRUST, AND WE'LL ALSO BRING FORWARD FOR CITY COUNCIL'S CONSIDERATION AS PART OF THE FISCAL YEAR 2324 PRELIMINARY BUDGET.

NOW, YOU MAY BE WONDERING WHAT YOUR NEW STRATEGIC PLAN HAS TO DO WITH THE CITY'S LONG TERM FINANCIAL HEALTH.

IT'S ACTUALLY ONE OF THE MORE SIGNIFICANT CHANGES THAT HAVE BEEN PUT IN PLACE, AND THAT'S BECAUSE THIS WILL RESULT IN FEWER DIRECTIONAL CHANGES AND AN INCREASED FOCUS ON COMMUNITY PRIORITIES IN A MORE EFFICIENT ALLOCATION OF RESOURCES.

WHEREAS PREVIOUSLY WHAT WE WERE DOING WAS EVERY YEAR WE WERE DOING AN ANNUAL GOAL SETTING AND WE WEREN'T ABLE TO BASICALLY TIE THE CITY'S BUDGET AND GOALS WITH ULTIMATELY THE GOAL SETTING EFFORTS.

SO FINALLY, WE'VE INCREASED TRANSPARENCY AROUND THE BUDGET AND BOTH FOR BOTH CITY COUNCIL AS WELL AS THE PUBLIC.

YOU'LL NOTICE WE INCLUDE MUCH MORE DETAIL IN THE BUDGET DOCUMENT.

NOW WE ALSO HAVE FOUND THAT SINCE THE REDUCTION OF NEARLY 50 FULL TIME POSITIONS DURING THE LAST RECESSION, STAFF HAD BEGUN TO RELY ON TEMPORARY PART TIME POSITIONS. NOW THE PROBLEM WITH THIS APPROACH IS THAT THE POSITIONS WERE NOT REFLECTED IN THE ANNUAL BUDGET AND WERE NOT AN EFFICIENT STAFFING SOLUTION FOR THE LONG TERM.

SO WE HAVE STOPPED THAT PRACTICE SO THAT STAFFING YOU SEE THE LAST FIVE BUDGETS REFLECTS THE ACTUAL NUMBER OF STAFF THAT WE HAVE FOR ANY GIVEN YEAR.

[01:00:07]

FINANCIAL FORECAST.

NOW THESE CHANGES HAVE BEEN PHASED IN OVER THE LAST FIVE YEARS AND THEY'VE ALREADY MADE A DIFFERENCE EVEN IN THE SHORT TERM.

BUT OVER TIME WE WILL SEE EXPONENTIAL BENEFITS.

BUT THERE IS STILL ONE CRITICAL MISSING ELEMENT TO OUR FOUNDATION, AND THAT IS ADDRESSING OUR LONG TERM STRUCTURAL DEFICIT.

WHICH BRINGS US FULL CIRCLE TO TODAY'S DISCUSSION.

SOME OF THE REASONS CITIES LIKE CARLSBAD BEGAN TO SEE STRUCTURAL DEFICITS IS THAT AS INFRASTRUCTURE AGES, OUR INVESTMENTS NEEDED TO MAINTAIN IT ARE HUGE.

OUR WATER, SEWER AND STORM DRAIN SYSTEM ALONE, SOMETHING WE JUST ACTUALLY TALKED ABOUT, REPRESENTS OVER $2 BILLION IN ASSETS THAT NEED TO BE MAINTAINED.

THAT'S RIGHT. 2 BILLION WITH A B.

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

NOW, THIS OCCURS AT THE VERY TIME THAT FEES FROM BUILDING THE FEES THAT ORIGINALLY PAID FOR MUCH OF THIS INFRASTRUCTURE ARE SLOWING UP AND DRYING UP.

AND CAPS ON CERTAIN TAXES MEANS THAT REVENUES RARELY KEEP PACE WITH INFLATION OR THE INCREASES IN SERVICE COSTS.

NOW, I DO WANT TO GIVE YOU SOME EXAMPLES OF NEW COSTS THAT WE'RE FACING.

FIRST OF ALL, I KNOW THAT WE'RE ALL KEENLY AWARE OF OVERALL INFLATION.

THE CHART BEFORE YOU SPOKE TO A LOT OF OUR CPI INCREASES, BUT BREAKING THOSE INCREASES DOWN TO SOME OF THE SPECIFIC COSTS REQUIRED TO RUN A CITY, YOU CAN SEE THAT FUEL AND UTILITIES HAVE INCREASED DRAMATICALLY.

WE'VE RECENTLY ALSO BEEN BEFORE CITY COUNCIL TO GET ADDITIONAL FUNDING FOR VEHICLE PURCHASES.

ALSO ON THE INCREASE.

AND THAT'S JUST HOPEFULLY WE CAN GET THEM.

BUT WE'RE EXPERIENCING A CHALLENGE BECAUSE OF SUPPLY CHAIN ISSUES.

BUT AS YOU CAN SEE, NEW CARS GOING UP, GETTING INTO EVEN MORE SPECIFIC EXAMPLES, GASOLINE, 36% INCREASE.

POOL CHEMICAL CHEMICALS 58% INCREASE.

STEEL 200%.

INCREASE. NATURAL GAS 49% INCREASE.

THEY'VE ALL INCREASED BEYOND OUR REVENUE SOURCES.

WE'VE ALSO INCURRED NEW ONGOING COSTS BECAUSE OF NEW PROGRAMS REQUESTED BY THE COMMUNITY IN THE PAST FIVE YEARS.

I'LL RUN THROUGH SOME OF THESE, BUT I ALSO WANT TO EMPHASIZE THAT THIS IS NOT AN EXHAUSTIVE LIST.

FIRST, WE'LL START WITH OUR POLICE RANGER PROGRAM, WHICH COSTS ABOUT 250,000 A YEAR AND INCLUDES TWO FULL TIME EMPLOYEES, A NEW BEACH LIFEGUARD PROGRAM AT 700,000 ANNUALLY, WHICH INCLUDES TWO NEW FULL TIME EMPLOYEES, CHANGING SOME OF OUR PART TIME POOL LIFEGUARDS TO FUND TWO FULL TIME TO ADDRESS THE CRITICAL SHORTAGE OF POOL LIFEGUARDS IS COSTING AN ADDITIONAL 82,000 A YEAR AND INCLUDES FOUR NEW FULL TIME MEMBERS.

WE REACTIVATED THE POLICE LIFEGUARD PATROL AT A COST OF 112,000, INCLUDING TWO FULL TIME EMPLOYEES.

CITY COUNCIL MADE A SIGNIFICANT COMMITMENT IN OUR FIRE AND EMERGENCY MEDICAL RESPONSE CAPABILITIES WITH TWO NEW AMBULANCES AND A NEW FIRE STATION SEVEN AND CREW. THESE NEW RESOURCES WILL PROVIDE MUCH NEEDED COVERAGE ALONG OUR COASTLINE, BUT THERE IS A COST OF $4.1 MILLION A YEAR AND 21 ADDITIONAL FULL TIME STAFF TO TO BE ABLE TO RESPOND TO THE EMERGENCIES.

AS PART OF OUR COMMITMENT TO INCREASE TRANSPARENCY, THE CITY HAS ADDED NEW BOARDS, COMMISSIONS AND COMMITTEES, AND ALL ARE NOW LIVE STREAMED AT A COST OF 137,000 A YEAR. OVER THE PAST FEW YEARS, WE'VE ADDED A BUENA VISTA RESERVOIR PARK, A NEW DOG PARK, NEW OUTDOOR FITNESS AREA, AND AN ARENA SOCCER FIELD.

THESE NEW ASSETS NEED ONGOING MAINTENANCE AT A COST OF $334,220 A YEAR.

TRAFFIC CONTINUES TO BE A TOP PRIORITY, AND WE'VE ADDED 250,000 OF ONGOING SPENDING SO THAT OUR TRANSPORTATION DEPARTMENT CAN COMPLETE MORE TRAFFIC STUDIES, WHICH IS THE FIRST STEP IN ADDRESSING NEIGHBORHOOD TRAFFIC SAFETY CONCERNS.

AN ANNUAL COST OF OUR HOMELESS RESPONSE PROGRAM IS 2.1 MILLION AND INCLUDES THREE NEW FULL TIME EMPLOYEES.

OUR NEW ENVIRONMENTAL SUSTAINABILITY INITIATIVES REQUIRED HIRING SIX ADDITIONAL STAFF TO RUN THOSE PROGRAMS. THE FIRE DEPARTMENT IS BEING PROACTIVE IN ADDRESSING PUBLIC HEALTH NEEDS THROUGH A NEW PROGRAM CALLED COMMUNITY PARAMEDICINE PROGRAM WILL HELP MITIGATE FUTURE COSTS OF EMERGENCY RESPONSE. BUT IN THE MEANTIME, 214,000 WAS ADDED TO THE CITY'S BUDGET, INCLUDED ONE FULL TIME EMPLOYEE.

WE'RE NOW PROVIDING MORE CLEAN ENERGY CHOICES TO OUR COMMUNITY, AND IN THE LONG RUN, THIS IS EXPECTED TO SAVE OUR RESIDENTS ABOUT 2% A YEAR ON THEIR ELECTRICITY BILLS. OUR PARTICIPATION IN THE CLEAN ENERGY ALLIANCE COSTS ABOUT 132,000 A YEAR IN COSTS TO ENABLE CITY COUNCIL TO MAKE DATA DRIVEN DECISION MAKING.

[01:05:01]

WE'VE INCREASED OUR SPENDING IN CULTURAL ARTS BY 280,000 A YEAR.

WE HIRED OUR FIRST DIVERSITY EQUITY AND INCLUSION MANAGER WHO OVERSEES THE PROGRAM, WHICH PROVIDES TRAINING TO CITY STAFF AND OTHER PROGRAMS TO ENSURE WE'RE MEETING THOSE IMPORTANT GOALS. AND THE VERY REAL THREAT OF CYBER ATTACKS HAS REQUIRED THAT A HALF $1 MILLION A YEAR IN NEW PROTECTIONS, WHICH ALSO INCLUDED ONE POSITION TO OVERSEE THAT PROGRAM.

SO IN SUMMARY, WE'VE WORKED HARD OVER THE PAST FIVE YEARS TO BECOME MORE EFFICIENT, TRANSFORMING OUR BUDGETS SO WE CAN ABSORB SIGNIFICANT COST INCREASES, OFFER DOZENS OF NEW PROGRAMS AND SERVICES, AND ALL WHILE STILL MAINTAIN THAT HIGH QUALITY OF SERVICE.

AND YOU CAN EXPECT TO SEE A BALANCED BUDGET NEXT MONTH THAT REFLECTS ANOTHER OVERALL SPENDING DECREASE WHILE MAINTAINING OUR HIGH SERVICE LEVELS.

BUT WE ARE EXHAUSTING OUR OPERATIONAL OPTIONS AVAILABLE TO US AND NEED YOUR POLICY GUIDANCE ON NEXT STEPS.

WITH THAT, I'LL NOW ASK OUR FINANCE DIRECTOR, ZACH KIRSCH, TO GO OVER THE FORECAST AND OPTIONS FOR YOUR CONSIDERATION.

ZACH THANK YOU, MR. CITY MANAGER, AND GOOD EVENING, MAYOR.

MAYOR PRO TEM, CITY COUNCIL MEMBERS.

I'M ZACH CORI, FINANCE DIRECTOR FOR THE CITY.

AND WE'LL JUMP RIGHT IN.

WE'RE LOOKING HERE AT THIS CHART.

IT'S A TEN YEAR LOOK BACK AT GENERAL FUND GROWTH SINCE THE GREAT RECESSION.

WE CAN SEE THAT THE GENERAL FUND REVENUES AND EXPENDITURES HAVE GROWN RELATIVELY PROPORTIONALLY AND ALSO AT A HEALTHY CLIP.

THIS PERIOD COINCIDED WITH THE UNITED STATES'S LARGEST AND LONGEST ECONOMIC EXPANSIONARY PERIOD IN ITS HISTORY, RESULTING FROM THIS POSITIVE REVENUE GROWTH.

THE CITY WAS ABLE TO ADD AND EXPAND MANY OF ITS PROGRAMS AND SERVICES, AS MR CHADWICK HAS PREVIOUSLY HIGHLIGHTED.

HERE WE'RE LOOKING AT THE THREE LARGEST REVENUE SOURCES WITHIN THE GENERAL FUND SALES TAX, PROPERTY TAX AND TRANSIENT OCCUPANCY TAX.

WE CAN SEE THAT SOME OF THE ADVERSE IMPACTS, PARTICULARLY ON SALES TAX AND TRANSIENT OCCUPANCY TAX THAT OCCURRED BEGINNING IN FISCAL YEAR 20 AND CARRIED INTO FISCAL YEAR 21, AGAIN RESULTING FROM THE COVID 19 PANDEMIC.

BUT AGAIN, DUE TO PENT UP DEMAND AS WELL AS SIGNIFICANT INFLATIONARY INCREASES, REVENUE RECOVERY WAS ACCELERATED AND HELPED MAINTAIN THOSE AVERAGE ANNUAL GROWTH RATES THAT WE SEE ON THE RIGHT SIDE OF THE CHART.

NOW, I DO WANT TO POINT OUT AND EMPHASIZE THAT WITH INFLATION AT 8% AND 6.4% IN JANUARY OF 2022 AND 2023 RESPECTIVELY, THIS HAD A SIGNIFICANT IMPACT ON THESE REVENUE SOURCES.

AND IT'S NOT TO SAY THAT THESE INCREASES ARE ARTIFICIAL, BUT IT IS IMPORTANT TO UNDERSTAND THAT THEY ARE UNPRECEDENTED.

THIS IS A LOOK AT THE GENERAL FUNDS RESERVE AND A HISTORY DATING BACK TO 2008.

THE ORANGE PERFORATED LINE IS THE CITY COUNCIL POLICY TARGET OF 40%.

WE COMPARE THE ACTUAL AMOUNT OF GENERAL FUND RESERVE IN RESPECT TO THE ADOPTED BUDGET AND ANY GIVEN YEAR AND AT ANY POINT DURING ANY GIVEN YEAR, WE ARE REQUIRED TO MAINTAIN A 40% RESERVE RATIO.

NOW, EVEN WITH THE EXPANDED SERVICES APPROVED BY THE CITY COUNCIL, THE CITY HAS BEEN ABLE TO BUILD UP GENERAL FUND RESERVES TO RECORD LEVELS.

AND THIS RESERVE IS LIKE A RAINY DAY FUND.

THE CITY COUNCIL HAS MADE IT A HIGH PRIORITY TO KEEP ABOUT SIX MONTHS OF OPERATING EXPENSES ON HAND SO THAT IN THE EVENT OF A DISASTER OR A SEVERE RECESSION, THE CITY WOULD BE ABLE TO CONTINUE TO PROVIDE CRITICAL SERVICES FOR THE COMMUNITY.

NOW, THE EXCESS IN REVENUES OVER EXPENDITURES IN THE TEN YEAR CHART THAT I PRESENTED PREVIOUSLY NOT ONLY AFFORDED THE ABILITY TO ADD AND EXPAND SERVICES AND PROGRAMS, BUT IT ALSO ALLOWED FOR AN ADDITIONAL CONTRIBUTION TO CALPERS IN THE AMOUNT OF $56.4 MILLION.

IT ALLOWED FOR ADDITIONAL CONTRIBUTIONS TO FUND FUTURE CAPITAL PROJECTS.

IT FUNDED RISING COSTS RELATED TO THE CITY'S WORKERS COMPENSATION AND RISK MANAGEMENT PROGRAMS, AND IT ALSO WAS ABLE TO MAKE A TRANSFER TO THE GOLF COURSE TO WRITE OFF A LONG TERM ADVANCE.

NOW, AS MENTIONED IN PREVIOUS FINANCIAL PRESENTATIONS, STAFF WILL BE BRINGING FORWARD A GOLF COURSE RESERVE POLICY THAT PRIORITIZES OPERATING AND CAPITAL FUNDING TO ENSURE SELF SUSTAINABILITY WITHIN THE GOLF COURSE OPERATION.

IT WILL ALSO PROPOSE AN ANNUAL REPAYMENT TO THE GENERAL FUND WHEN AND WHERE APPLICABLE, WE'LL BE BRINGING THIS POLICY FORWARD AS PART OF THE PRELIMINARY BUDGET IN MAY.

SO I DO WANT TO TALK A FEW MINUTES ABOUT THE CITY'S FORECASTING.

TRADITIONALLY, THE CITY HAS USED A TEN YEAR FORECAST FOR PLANNING PURPOSES, BUT WE'VE ALSO TENDED TO FOCUS ON THE FIRST FIVE YEARS.

WE FOCUS ON THE FIRST FIVE YEARS BECAUSE THERE REALLY ARE SO MANY VARIABLES THAT GO INTO A FORECAST AND IT CAN BECOME INCREASINGLY DIFFICULT TO ACCURATELY PREDICT TOO FAR INTO THE

[01:10:06]

TO CREATE A FORECAST, WE NEED TO MAKE ASSUMPTIONS ABOUT SEVERAL VARIABLES RELATED TO HOW MUCH MONEY WE THINK IS GOING TO COME IN AND HOW MUCH MONEY WE THINK WILL SPEND OVER TIME.

WE OFTEN SAY THAT THE MOMENT A FORECAST IS PUBLISHED, THAT'S THE FIRST TIME IT'S NO LONGER ACCURATE.

AND THAT'S REALLY AN EXPRESSION TO MEAN THAT FORECAST ASSUMPTIONS ARE CONSTANTLY CHANGING EVERY DAY.

AND BECAUSE ASSUMPTIONS CHANGE THE FURTHER WE LOOK OUT INTO THE FUTURE.

IT'S IMPORTANT TO CONSIDER MULTIPLE MODELS WITH VARYING LEVELS OF ASSUMPTION.

SO GENERALLY AND HISTORICALLY SPEAKING, WE DO USE CONSERVATIVE ASSUMPTIONS WHEN IT COMES TO REVENUES.

AND TODAY WE'RE GOING TO BE SHOWING YOU THREE FORECAST SCENARIOS RANGING FROM A CONSERVATIVE TO A MODERATE TO AN OPTIMISTIC FORECAST.

THE REVENUE ASSUMPTIONS FOR PROPERTY TAXES, SALES TAXES AND TRANSIENT OCCUPANCY TAXES, WHICH MAKE UP APPROXIMATELY 80% OF GENERAL FUND REVENUES IN TOTAL, HAVE BEEN MODIFIED ACROSS THESE THREE MODELS.

ON THE EXPENDITURE SIDE, HOWEVER, WE HAVE LEFT THOSE ASSUMPTIONS UNCHANGED.

THE REASON BEING EXPENDITURES ARE INHERENTLY A BIT EASIER TO PREDICT OR TO PROJECT, AND THE REASON FOR THAT IS EXPENDITURES ARE VERY CLOSELY TIED TO NEGOTIATED LABOR AGREEMENTS.

THEY'RE CLOSELY CORRELATED WITH ECONOMIC INDICATORS SUCH AS CPI OR CONSUMER PRICE INDEX.

GOING BACK TO REVENUES FOR A MOMENT, IF WE LOOK AT THE PERCENTAGES FOR EACH OF THOSE THREE REVENUE CATEGORIES, WE MIGHT ASK OURSELVES, DOES A ONE PERCENTAGE POINT CHANGE OR A HALF OF A PERCENT REALLY MAKE THAT MUCH OF A DIFFERENCE? AND IN ONE YEAR IT MIGHT NOT MOVE THE NEEDLE A WHOLE LOT.

BUT WHEN WE ACCUMULATE THAT AND EXTRAPOLATE IT OVER A TEN YEAR PERIOD, THEY CAN ADD UP TO A SIGNIFICANT AMOUNT BETWEEN THE CONSERVATIVE AND THE OPTIMISTIC FORECAST THAT WE'RE ABOUT TO SEE AND EXTENDED OVER A TEN YEAR PERIOD OF TIME.

REVENUES VARY BY ALMOST $100 MILLION.

SO THIS IS A LOOK AT THE CONSERVATIVE FORECAST FOR THE GENERAL FUND.

AND AGAIN, THIS ASSUMES 22.

8% AVERAGE ANNUAL GROWTH FOR PROPERTY TAX, 1.4% FOR SALES TAX AND 1% FOR TRANSIENT OCCUPANCY TAX RESULTINGLY WE CAN SEE THAT THE LINES CROSS IN FISCAL YEAR 2526 WHEN WE REFER TO WHEN WE USE THAT TERM LINES CROSSING, WE'RE REFERRING TO EXPENDITURES COMING IN IN EXCESS OF REVENUES AND CONTINUING THEREAFTER ANNUALLY AT THE END OF THE FORECASTED PERIOD, A $10 MILLION DEFICIT IS PROJECTED WITHIN THE CONSERVATIVE FORECAST MODEL.

APPLYING MORE MODERATE AVERAGE ANNUAL GROWTH RATES OF 2.8% FOR PROPERTY TAX, 2.5% FOR SALES TAX AND 1.5% FOR TOT.

WE CAN SEE THE CROSSING OF THE LINES POSTPONED BY ONE YEAR OR DELAYED BY ONE YEAR AS IT IS NOT PROJECTED TO OCCUR UNTIL FISCAL YEAR 2627 AT THE END OF THE FORECASTED PERIOD. A $6 BILLION DEFICIT IS PROJECTED.

NOW FINALLY LOOKING AT A MORE OPTIMISTIC MODEL, AGAIN, ASSUMING 3.8% AVERAGE ANNUAL GROWTH FOR PROPERTY TAX, 2.5% FOR SALES TAX AND 2% FOR TRANSIENT OCCUPANCY TAX, THE LINES, AGAIN FOLLOWING THE SAME PATTERN ARE PUSHED OUT ONE ADDITIONAL YEAR AND NOT PROJECTED TO OCCUR UNTIL FISCAL YEAR 2728, WHERE A $600,000 DEFICIT WOULD BE PROJECTED.

SO LOOKING AT THESE THREE MODELS, THE BIG TAKEAWAY IS UNDERSTANDING THAT WHETHER WE'RE RELYING UPON CONSERVATIVE OR MODERATE OR OPTIMISTIC ASSUMPTIONS, THE FUTURE PROJECTED DEFICIT STILL OCCURS ACROSS ALL THREE MODELS, ALBEIT THE TIMING DOES CHANGE BETWEEN.

SO WHEN WE'RE LOOKING AT A FORECAST, IT IS IMPORTANT TO UNDERSTAND WHAT IS IN IT AND WHAT IS NOT.

GENERALLY, WHEN FINANCIAL FORECASTS ARE PUT TOGETHER, WE WANT TO ACCOUNT FOR OUR BASELINE REVENUES AND OUR BASELINE EXPENDITURES ON THE EXPENDITURE SIDE WE WANT TO ACCOUNT FOR.

AGAIN, AS I MENTIONED, BASELINE EXPENDITURES, WHAT WE NEED TO HAVE TO BE ABLE TO CARRY OUT AND PERFORM THE SERVICES THAT ARE REQUESTED AND REQUIRED OF US ON AN ANNUAL BASIS.

WITH THIS SLIDE HERE, WE HAVE IDENTIFIED A NUMBER OF ITEMS THAT ARE NOT INCLUDED IN THE FORECAST, AND THAT WILL LIKELY ALSO REQUIRE ADDITIONAL FUNDING.

WE PROJECTED THE ONGOING OPERATING IMPACTS FROM COMPLETED CAPITAL IMPROVEMENT PROGRAM PROJECTS, AS WELL AS TECHNOLOGY RELATED PROJECTS BETWEEN CIP AND THE TECHNOLOGY FUND.

THESE ARE SEPARATE FUNDING SOURCES OR FUNDING LOCATIONS WHERE IMPLEMENTATION AND CONSTRUCTION OF THESE PROJECTS TAKE PLACE.

ONCE THEY'RE COMPLETED, OPERATING COSTS GENERALLY WILL FALL BACK ONTO THE RESPONSIBILITY OF THE GENERAL FUND TO CARRY THAT OUT IN THE FUTURE.

WE ALSO HAVE ONE TIME CAPITAL OUTLAY ITEMS THAT ARE SCHEDULED FOR REPLACEMENT WITHIN THE CITY'S PUBLIC SAFETY BRANCHES.

HISTORICALLY, THESE TYPES OF ITEMS ARE REQUESTED ON AN ANNUAL BASIS AS PART OF THE ADOPTED BUDGET.

[01:15:01]

ANOTHER CONSIDERATION IS THE CITY'S CAPITAL IMPROVEMENT PROGRAM, FUNDED BY A COMBINATION OF DEVELOPER FEES, STATE AND FEDERAL GRANT REVENUES AND ALSO THE GENERAL FUND.

THE CIP IS ALSO SUBJECT TO SIGNIFICANT COST INCREASES, AS HAS BEEN EXPERIENCED IN THE GENERAL FUND.

HERE WE HAVE A LOOK AT THE GENERAL CAPITAL CONSTRUCTION CAPITAL PROJECT FUND.

WE HAVE THE AMOUNTS OF FUNDS AVAILABLE EACH YEAR WITH THE ORANGE COLUMNS, AND THE BLUE LINE REPRESENTS THE PROJECTED BUDGET REQUESTS THAT ULTIMATELY REDUCE THE AMOUNT OF FUNDING AVAILABLE. THE GCC OR THE GENERAL CAPITAL CONSTRUCTION FUND, RECEIVES ANNUAL FUNDING FROM THE GENERAL FUND IN ACCORDANCE WITH CITY COUNCIL POLICY NUMBER 91.

AND THE CONCERN IS AS THE AMOUNT OF AVAILABLE FUNDS DECREASE, TWO OPTIONS REALLY COME INTO PLAY.

THE FIRST BEING ADDITIONAL FUNDING WILL BE REQUIRED OR TWO CAPITAL PROJECTS WILL NEED TO BE POSTPONED OR DELAYED.

THE GCC IS CURRENTLY RESPONSIBLE AND PROGRAMED FOR FUNDING VILLAGE DECORATIVE LIGHTING PROJECT TRAFFIC IMPROVEMENT PROGRAM TRAIL CONNECTIVITY TO TAMARACK STATE BEACH, ADA BEACH ACCESS, ARGONAUT PARK MODIFICATIONS AMONG MANY OTHERS.

AND THAT IS REALLY ALL TO SAY THAT THE CHALLENGES THAT WE'RE FACING AND WE'VE JUST BEEN TALKING ABOUT WITH THE GENERAL FUND AND ALSO FOR GENERAL CAPITAL CONSTRUCTION, IT'S NOT UNIQUE TO THOSE TWO FUNDING SOURCES, BUT THIS IS SOMETHING THAT WE'RE REALLY EXPERIENCING AND FACING ON A CITYWIDE LEVEL.

SO THIS BRINGS US BACK TO THE TO A SLIDE THAT MR CHADWICK WENT OVER EARLIER.

AGAIN, CARLSBAD IS NOT UNIQUE IN FACING THESE CHALLENGES.

AND WHEN CITIES FACE A DEFICIT, THEY GENERALLY FOCUS ON ONE OR MORE OF THESE STRATEGIES, STARTING WITH INCREASING EFFICIENCY.

MR. CHADWICK. EXCUSE ME.

MR. CHADWICK. CHADWICK.

WENT OVER THE WAYS THAT WE'VE BEEN ABLE TO DO MORE WITH LESS.

WE INNOVATE TO REDUCE THE NEED FOR NEW STAFF, INCREASE EXISTING STAFF CAPACITY TO CUT COSTS, GENERATE SAVINGS, EXPAND SERVICES, AND REALLY TO IMPROVE THE OVERALL CARLSBAD EXPERIENCE FOR OUR RESIDENTS, BUSINESSES AND OUR VISITORS.

OUR TOOLS INCLUDE RIGOROUS EVALUATIONS, DATA DRIVEN DECISION MAKING, REENGINEERING PROCESSES, AS WELL AS PARTNERING WITH OTHER ORGANIZATIONS TO HELP BRING VALUE TO THE CITY.

I WANTED TO PROVIDE A FEW EXAMPLES OF INCREASING EFFICIENCY OVER THE IN RECENT YEARS.

THINK ABOUT THE USE OF MICROSOFT TEAMS AND OTHER REMOTE WORK COLLABORATION TOOLS COUPLED WITH THE CITY'S TELECOMMUTE POLICY.

OUR NEED TO CONSOLIDATE STAFF INTO ONE CENTRAL CITY HALL AND OFFICE LOCATION WAS CUT ROUGHLY IN HALF FROM $120 MILLION TO AN ESTIMATED 50 TO $60 MILLION CURRENTLY.

WHEN WE LOOK AT NEW PROGRAMS AND SERVICES OR ENHANCEMENTS, WE'RE LOOKING TO WE'RE LOOKING TO TOWARDS WAYS OF USING THE TOOLS AND THE TALENT AND THE TECHNOLOGY THAT WE HAVE HERE IN HOUSE FIRST BEFORE HIRING OUTSIDE HELP.

AN EXAMPLE OF THIS IS THE CITY'S ECONOMIC SCAN REPORT.

WHEN WE PROVIDE THE ECONOMIC AND FINANCIAL QUARTERLY UPDATES FOR THE CITY COUNCIL, RATHER THAN PAYING A CONSULTANT ANYWHERE BETWEEN 80 AND $100,000 ANNUALLY TO PERFORM THESE SERVICES, WE WENT STRAIGHT TO THE DATA SOURCES AND OUR IN HOUSE ECONOMIC DEVELOPMENT TEAM.

TO COMPLETE THE SAME WORK AT A FRACTION OF THE COST.

SINCE 2020, THE CITY HAS AVOIDED OR SAVED APPROXIMATELY $450,000 AND ABOUT 4000 HOURS OF STAFF TIME, WITH ABOUT A THIRD OF THAT BEING ONGOING SAVINGS.

BUT EVEN WITH ALL OF THESE TREMENDOUS EFFORTS, SOLELY RELYING ON EFFICIENCIES GENERALLY IS NOT ENOUGH TO CLOSE THE FUNDING GAP IN THE FUTURE.

MOVING OVER TO THE TOP RIGHT SQUARE, THE CITY COUNCIL JUST RECENTLY APPROVED THE NEW COST RECOVERY POLICY WHERE WE HAVE THE ABILITY TO RECOUP OR RECOVER MORE OF THE COSTS RELATED TO THE SERVICES THAT EMPLOYEES PROVIDE FOR THE COMMUNITY.

AGAIN, THAT WILL HELP OVER THE NEXT 3 TO 4 YEARS, WE'RE GOING TO SEE SOME MODERATE INCREASES IN CHARGES FOR SERVICES, BUT AT THE SAME TIME, IT IS LIKELY NOT GOING TO BE ENOUGH TO CLOSE THE FULL GAP.

AND THIS LEADS US TO TWO MORE DIFFICULT DECISIONS CHANGING LEVELS OF SERVICE AND ASKING THE COMMUNITY TO APPROVE REVENUE INCREASES.

NOW, WHEN IT COMES TO CITY SERVICES, CARLSBAD DOES PRIDE ITSELF ON REACHING A REACHING FOR A HIGHER STANDARD THAN MOST CITIES.

THE MOST COMMON WAY THAT WE HEAR RESIDENTS NOTICE THIS IS WHEN YOU'RE ON OUR ROADS AND CROSS INTO ANOTHER JURISDICTION, IT'S SIMPLY A DIFFERENT EXPERIENCE.

YOU COULD SAY THE SAME FOR MOST OF THE CITY.

THE SERVICES WITHIN THE CITY, FROM PUBLIC SAFETY TO THE MAINTENANCE OF OUR INFRASTRUCTURE AND OF COURSE, OUR OUTSTANDING LIBRARY AND ARTS PROGRAMS. BUT THESE LEVELS OF SERVICE COME WITH A COST.

ONE OPTION AVAILABLE TO THE CITY COUNCIL IS TO CONSIDER AREAS WHERE SOME OF OUR SERVICE LEVELS COULD BE BROUGHT MORE INTO ALIGNMENT WITH OTHER CITIES OUR SIZE.

THE OTHER OPTION IS TO FIND WAYS TO GENERATE OR INCREASE REVENUE.

[01:20:04]

TRANSIENT OCCUPANCY TAX ARE OFTEN REFERRED TO AS A HOTEL ROOM TAX AS WELL AS A PARCEL TAX.

BEFORE WE GET INTO THE SPECIFIC REVENUE ENHANCEMENT OPTIONS, ONE, TO PROVIDE A LOOK AT STATEWIDE LEVEL, WE CAN SEE THAT THREE FOURTHS OR 75% OF ALL CALIFORNIA CITIES, AS WELL AS UNINCORPORATED TOWNS SINCE THEIR INCEPTION HAVE ALREADY PASSED SALES TAX MEASURES TO BRING IN NEW ONGOING REVENUE.

LOOKING MORE CLOSELY WITHIN SAN DIEGO COUNTY, HALF OF THE CITIES HAVE PASSED SALES TAX MEASURES, AND THIS ALSO INCLUDES SANDAG HALF CENT TAX, WHICH IS ALREADY IN PLACE.

SO LOOKING MORE SPECIFICALLY AT SALES TAX.

NOT ONLY IS IT THE MOST COMMON TAX MEASURE THAT AGENCIES CONSIDER, IT GENERATES BY FAR THE MOST ADDITIONAL REVENUE FOR THE CITY.

THIS WAS ONE OF SEVERAL REVENUE OPTIONS THAT WAS STUDIED.

LAST YEAR WHEN THE CITY COUNCIL ASKED STAFF TO BEGIN EXPLORING POTENTIAL REVENUE OPTIONS.

A SALES TAX MEASURE WOULD REQUIRE A SIMPLE MAJORITY VOTE OR 50% PLUS ONE.

THE CURRENT RATE IN THE CITY OF CARLSBAD IS 7.75% AND INCREASING IT BY A FULL PERCENTAGE POINT TO 8.75% WOULD GENERATE AN ADDITIONAL $40 MILLION ANNUALLY FOR THE GENERAL FUND.

NOW FOR FURTHER CONTEXT, WITH A RATE INCREASE IN EFFECT FOR EVERY $10,000 IN TAXABLE GOODS THAT'S PURCHASED BY AN INDIVIDUAL EACH YEAR, THE AMOUNT OF TAX PAID WOULD INCREASE FROM $775 TO $875.

ANOTHER POINT I WANT TO EMPHASIZE AND STRESS IS THAT MANY AGENCIES ALSO LOOK TO SALES TAX MEASURES TO MAINTAIN LOCAL CONTROL OVER THEIR TAXING AUTHORITY, THEIR LOCAL TAX DOLLARS.

GENERALLY SPEAKING, THE LOCAL TAX CANNOT EXCEED 2%.

AND FOR MANY JURISDICTIONS, THIS LEAVES ROOM IN OPPORTUNITY FOR OTHER ENTITIES, WHETHER IT BE THE STATE, OTHER REGIONAL ENTITIES OR EVEN THE COUNTY, TO PASS A MEASURE SECURING A PORTION OF THAT TAXING AUTHORITY.

WITH THE MUNICIPAL REVENUE STUDY THAT WAS COMPLETED IN THE WINTER OF 2022.

PART OF THIS STUDY DID INCLUDE A SCIENTIFIC SURVEY OF POTENTIAL CARLSBAD VOTERS, AND IT DID FIND THAT THE MAJORITY OF VOTERS IN THIS SURVEY SUPPORTED A 1% SALES TAX MEASURE. THEIR PRIORITIES FOR MAINTAINING SERVICES INCLUDED THE MAINTENANCE OF PARKS, OPEN SPACES, RECREATION FACILITIES, STREETS AND ROADS, TRASH AND POLLUTION, AS WELL AS PUBLIC SAFETY.

MOVING OVER TO TRANSIENT OCCUPANCY TAX.

THIS WAS ANOTHER OPTION THAT WAS STUDIED.

WHEN WE REFER TO TRANSIENT OCCUPANCY TAX, THESE ARE THE TAXES THAT VISITORS PAY WHEN THEY SPEND THE NIGHT AT A CARLSBAD HOTEL OR SHORT TERM RENTAL.

IT DOES REQUIRE A SIMPLE MAJORITY VOTE OR 50% PLUS ONE.

THE CURRENT RATE WITHIN THE CITY IS 10%.

BUT IT'S IMPORTANT TO NOTE THAT WITHIN THE CITY THERE IS ALSO AN ASSESSMENT THAT IS ASSESSED BY THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT.

THOSE DOLLARS ARE NOT RETAINED BY THE CITY OR THE GENERAL FUND.

THEY STAY WITH THE BUSINESS IMPROVEMENT DISTRICT AND ARE USED TO PROMOTE TOURISM WITHIN THE COMMUNITY.

THE AVERAGE TOT RATE IN NORTH COUNTY IS 10.72% AND FOR EXAMPLE, PURPOSES AN ADDITIONAL 2% INCREASE TO THE CITY'S RATE WOULD GENERATE APPROXIMATELY $6 MILLION ANNUALLY.

ONE NEW OPTION THAT WAS NOT INCLUDED IN THE PREVIOUS STUDY IS A PARCEL TAX, AND THIS ONE IS A BIT DIFFERENT.

IT DOES REQUIRE A TWO THIRDS VOTE AS IT WOULD BE CLASSIFIED AS A SPECIAL TAX OR NEEDING TO BE USED FOR A SPECIAL PURPOSE.

IT IS A NON AD VALOREM TAX, WHICH MEANS THAT THE TAX IS NOT BASED OR CALCULATED FROM THE ASSESSED VALUE OF THE PROPERTY.

THERE IS A BIT MORE DISCRETION IN TERMS OF HOW A PARCEL TAX MIGHT BE STRUCTURED.

THERE IS EITHER A FLAT TAX PER PARCEL OR A VARIABLE RATE DEPENDING ON THE SIZE, USE OR NUMBER OF UNITS.

IT'S IMPORTANT TO NOTE THAT INFLATIONARY INCREASES CAN BE APPLIED TO THE PARCEL TAX AND THE AMOUNT OF ADDITIONAL REVENUE IS HIGHLY DEPENDENT ON METHODOLOGY.

BUT AGAIN, FOR FOR CONTEXT, ASSUMING 42,000 PARCELS AT A FLAT RATE OF $100 WOULD GENERATE APPROXIMATELY $4.2 MILLION ANNUALLY.

REVENUE BONDS OR COMMONLY REFERRED TO AS ISSUING DEBT.

THIS IS A WAY TO SECURE CASH IN ORDER TO FUND VARIOUS PUBLIC PROJECTS.

THEY ARE ADVANTAGEOUS FOR AGENCIES THAT MIGHT BE RELATIVELY SHORT ON CASH OR FUNDS AND NEED TO COMPLETE CRITICAL CAPITAL IMPROVEMENTS IN A RELATIVELY SHORT TIME FRAME.

ONE ADVANTAGE OF ISSUING BONDS IS TO AVOID CONSTRUCTION COST INCREASES OVER TIME.

HOWEVER, CURRENTLY, WITH INTEREST RATES ON THE RISE, THE COST OF BORROWING MAKES IT LESS APPEALING.

FOR EXAMPLE, ISSUING $50 MILLION IN REVENUE BONDS WOULD REQUIRE APPROXIMATELY $4 BILLION IN ANNUAL DEBT SERVICE OVER A 20 YEAR TERM, THE NET COST WOULD BE

[01:25:03]

LASTLY, AS PART OF THE MUNICIPAL REVENUE STUDY, WE DID EXPLORE THE SUPPORT OR THE POTENTIAL SUPPORT FOR A CANNABIS TAX MEASURE, WHICH GENERALLY HAVE A HIGH PASSING RATE IN IN JURISDICTIONS THAT DETERMINED TO PLACE IT ON A BALLOT.

THESE CAN BE STRUCTURED IN MANY DIFFERENT WAYS.

SO WHILE IT IS VERY DIFFICULT TO TRY TO QUANTIFY OR ESTIMATE THE AMOUNT OF ADDITIONAL REVENUE, FOR EXAMPLE, PURPOSES, WITH THE CITY OF VISTA RECENTLY PASSING THEIR CANNABIS TAX MEASURE, THEY GENERATED ABOUT $5.1 MILLION IN THE FIRST FISCAL YEAR.

IT CAME ONLINE.

IT IS IMPORTANT TO NOTE, HOWEVER, AS PART OF THE SURVEY, CARLSBAD VOTERS DID NOT FAVOR THIS CONCEPT.

SO HERE WE HAVE A LOOK, A SUMMARY OF VARIOUS TAX MEASURES THAT HAVE BEEN PASSED IN OUR REGION IN THE LAST TEN YEARS, BROKEN DOWN BY CANNABIS MEASURES, SALES TAX AND TRANSIENT OCCUPANCY TAX.

THE PERCENTAGES REPRESENT THE PASSING RATE.

AND BEFORE YOU IS A GEOGRAPHICAL MAP SHOWING WHERE THOSE TAX MEASURES HAVE BEEN PASSED IN THE LAST TEN YEARS.

EVERYTHING OTHER THAN THE GREEN SHADED AREA REPRESENTS A JURISDICTION THAT HAS NOT PASSED A TAX IN THE LAST TEN YEARS.

SO IN SUMMARY, I DO WANT TO SAY THAT THE CITY REMAINS FINANCIALLY HEALTHY TODAY, BUT THAT OUR FORECAST, AS WE'VE SEEN, REGARDLESS OF CONSERVATIVE, MODERATE OR OPTIMISTIC ASSUMPTIONS, DO PROJECT A DEFICIT IN THE IN THE FUTURE.

AND I ALSO WANT TO STRESS THAT THIS IS NOT UNIQUE TO CARLSBAD, BUT RATHER IT'S SOMETHING THAT MOST JURISDICTIONS FACE, AND THAT IS BALANCING SERVICE LEVELS, CAPITAL NEEDS, INFRASTRUCTURE MAINTENANCE, AS WELL AS REVENUE GROWTH.

AND AGAIN, THIS IS NOT AN EMERGENCY.

WE HAVE TIME TO THOUGHTFULLY APPROACH THESE CHALLENGES, BUT WE DO BELIEVE IT'S PRUDENT TO BRING THIS INFORMATION FORWARD TO ENSURE THE CITY COUNCIL AND THE COMMUNITY IS AWARE OF THESE CHALLENGES SO THAT DECISIONS CAN BE MADE PROACTIVELY AND WE CAN MITIGATE THE RISK OF FINDING OURSELVES IN A POSITION DOWN THE ROAD WHERE WE MIGHT BE FACING MORE IMMEDIATE FUNDING GAPS. AS FOR THE RECOMMENDATION, THE CITY COUNCIL IS REQUESTED TO RECEIVE THE REPORT AND PROVIDE FEEDBACK AND DIRECTION ACCORDINGLY.

BUT AGAIN, I WOULD LIKE TO EMPHASIZE THE IMPORTANCE OF THESE ACTIONS.

AS HIGHLIGHTED PREVIOUSLY, STAFF WILL NEVER BRING FORWARD AN UNBALANCED BUDGET AND IF THE DECISION IS IN FACT TO STAY THE COURSE, STAFF WILL CONTINUE TO ANALYZE ITS SERVICES AND PROGRAMS TO CAREFULLY AND STRATEGICALLY IDENTIFY AND RECOMMEND REDUCTIONS IN AN EFFORT TO CONTINUE PUSHING THAT PROJECTED DEFICIT FURTHER INTO THE FUTURE.

AND WHILE WE'VE ALREADY BEEN DOING THIS FOR MULTIPLE YEARS NOW, WE DO BELIEVE THAT WE'RE AT A POINT WHERE FURTHER REDUCTIONS WILL SIGNIFICANTLY IMPACT SERVICE LEVELS FOR THE COMMUNITY. ALTERNATIVELY, IF THE CITY COUNCIL WERE TO DIRECT STAFF TO FURTHER RESEARCH REVENUE ENHANCEMENTS, WE WOULD RETURN AGAIN IN THE NEAR FUTURE WITH ADDITIONAL INFORMATION AND THE NECESSARY EXHIBITS AND ITEMS FOR FURTHER ACTION.

THAT CONCLUDES OUR PRESENTATION AND WE'RE AVAILABLE FOR QUESTIONS.

THANK YOU. DO WE HAVE SPEAKERS? WE HAVE THREE. MAYOR THANK YOU.

MIKE BORELLO FOLLOWED BY KRISSHA.

MIKE BORRELLO. SO.

NO, NO TAX, PLEASE.

ONE THING THAT WASN'T MENTIONED IN THE PRESENTATION.

UH. WE HAD INFLATION, INFLATION.

WE LOOKED AT INFLATION A YEAR AGO AND IT HAPPENED LIKE BIG TIME.

RIGHT? ANOTHER THING THAT'S NOT BEING LOOKED AT RIGHT NOW IS THE FINANCIAL SITUATION OF THE UNITED STATES.

UH, THERE'S A LOT OF UNCERTAINTY NOW WITH BANKS.

AND THERE WAS NO MENTION OF THAT.

AND HOW THAT'S GOING TO AFFECT CITY FINANCES.

SO WHAT DO YOU DO IN THAT SITUATION? YOU DON'T CONTINUE SPENDING.

CRAZY AND TAXING PEOPLE.

YOU MOVE WITH CAUTION.

AND YOU YOU MOVE INTO, I GUESS, WHAT IS IT? AUSTERITY. YOU DON'T SPEND BECAUSE OF UNCERTAINTY.

YOU MENTIONED THAT THE PEOPLE.

THAT YOU POLLED THE PEOPLE AND THAT THEY WANT A 1% TAX.

THEY NEVER ASKED ME. DID THEY ASK ANYBODY HERE? EVERYBODY'S SHAKING THEIR HEAD.

YES. NO.

ANY. YES. NO.

WHO DID YOU ASK? HOW WAS THAT POLL DONE? I DIDN'T HEAR ABOUT IT.

WE'RE TAXED TOO MUCH AS IT IS.

I WENT TO BUY SOME STAPLES TO PUT DOWN.

WEED BARRIER IN MY FRONT YARD AND THEY TACK ON THIS TAX I'VE NEVER EVEN HEARD OF.

WHERE DID THAT COME FROM? SOMEWHERE IN CALIFORNIA.

[01:30:01]

AND IT TURNED OUT IT WAS BECAUSE IT WAS A LANDSCAPING TAX.

SO WE GET OUR PROPERTY TAXES JUST WENT UP THIS YEAR.

SO I ASK THE CITY, PLEASE DON'T RAISE OUR SALES TAX.

UM. STOP SPENDING.

REDUCE SPENDING.

REDUCE STAFF.

I SAW A FEW THINGS THAT YOU COULD TAKE OFF OFF OF THAT LIST UP THERE.

ANYWAY, THANK YOU.

DURING A TIME OF CRISIS, DURING A TIME OF ABUNDANCE, IT IS DIFFICULT TO SUCCESSFULLY ARGUE AGAINST VIRTUE SIGNALING SPENDING.

FOR EXAMPLE, THE COUNCIL HAD NO PROBLEM VIRTUE SIGNALING ON ENDING THE USE OF STYROFOAM PRODUCTS, PUTTING THE FINANCIAL BURDEN ON THE LOCAL SMALL BUSINESSES WHO WOULD LOSE MONEY ON INVENTORY ALREADY PAID FOR THE OR FOR THE NEW MONEY TO HAVE TO SPEND ON NEW PRODUCTS.

THE COUNCIL HAD NO PROBLEM VIRTUE SIGNALING ON EQUITY, WHICH IS NOT EQUALITY OF OPPORTUNITY, BUT THE INHERENT UNFAIR DICTATION OF EQUAL OUTCOMES, CREATING A NEW AND TOTALLY UNNECESSARY DEPARTMENT WITHIN THE CITY AND SPENDING TENS OF THOUSANDS OF DOLLARS ON THAT STUFF.

THE COUNCIL HAD NO PROBLEM SPENDING TENS OF THOUSANDS OF DOLLARS ON THREE ON A TREE STUMP THAT MAYBE COULD BE ART.

AND HOW MANY HUNDREDS OF THOUSANDS OF DOLLARS HAVE BEEN SPENT ON NEW HOMELESS DEVELOPMENT STAFF, HOMELESS PROGRAM, HOMELESS HOUSING? AND TO WHAT END? HAS THE HOMELESS PROBLEM BEEN SOLVED? HAS THE MONEY EVEN MADE A DENT IN THE PROBLEM? OF COURSE NOT.

IT'S NOT EVEN MEANT TO BE SOLVED.

IT'S MEANT TO BE AN ENDLESS INVESTMENT.

AND SO AN ENDLESS INVESTMENT SO THAT IT CAN BE AN UNSOLVABLE PROBLEM IS MEANT TO BE A POLITICAL ISSUE WHICH POLITICIANS CAN JUSTIFY SPENDING MORE MONEY.

OUR MONEY. THE PEOPLE'S MONEY TO VIRTUE SIGNAL FOR THE THOUSANDS.

FOR THE FOR THE UNHOUSED.

SO MILLIONS OF DOLLARS ARE SPENT TO IGNORE THOSE WHO DON'T WANT HELP.

THOSE ONES THAT ARE DRUG ADDICT, ADDICTED, ALCOHOL ADDICTED AND MENTALLY ILL.

NO. INSTEAD, WE THE PEOPLE FINANCED THEIR ADDICTIONS AND PATHOLOGIES SO THAT POLITICIANS CAN FALSELY SAY THEY ARE HELPING THE UNHOUSED.

BUT ALL THESE PROGRAMS AND SO MANY MORE, MORE WERE NOT PUT FORTH DURING TIME OF ABUNDANCE.

NOW IT'S NOT A TIME OF ABUNDANCE.

NOW IT'S A TIME OF BELT TIGHTENING.

NOW IS A TIME TO BACK, TO CUT BACK ON SPENDING.

NOW IS A TIME TO CUT OUT WASTE AND SPEND AND SPENDING.

WASTEFUL PROGRAMS. DO NOT BE HYPOCRITES AND SAY YOU WANT TO PROTECT OUR CITIZENS WHEN YOU ARE WHEN YOU ARE INCREASING THE FINANCIAL BURDEN ON US BY INCREASING TAXES.

DO NOT BE HYPOCRITES AND PRETEND THAT CARLSBAD CITIZENS ARE PLENTY WEALTHY AND CAN AFFORD TO ABSORB YOUR RAPACIOUS SPENDING.

STOP PASSING THE BUCK TO THE HARD WORKING MIDDLE CLASS AND START TAKING SOME RESPONSIBILITY FOR DECISION MAKING ON SPENDING AND MAKE SOME CUTS.

START BY CUTTING THE EQUITY DEPARTMENT.

START BY CUTTING THE MASSIVE INCREASE OF STAFF POSITION IN THE CITY OVER THE LAST THREE YEARS.

START BY ACKNOWLEDGING THAT MONEY THAT YOU CRAVE IS NOT MONOPOLY MONEY, BUT THE PEOPLE'S MONEY YOU WORK FOR THE PEOPLE.

STOP CRUSHING US AND SHOW SOME RESTRAINT AND RESPECT.

HASN'T EVEN GONE TO BUY MILK AND EGGS LATELY.

THE INFLATION IS KILLING US.

ENOUGH. COME ON.

JOHN SINCLAIR.

GOOD EVENING.

SO SALES TAX INCREASE HAS REARED ITS UGLY HEAD AGAIN.

IT SEEMS LIKE JUST A YEAR AGO, WE WERE LOOKING AT A STUDY WHICH THE GENTLEMAN MENTIONED.

IT WAS INCLUDED IN THE AGENDA PACKET.

IT WASN'T IN THE AGENDA PACKET THIS TIME.

SO THERE ARE SOME DETAILS THAT I THINK ARE IMPORTANT TO CLARIFY THE STATEMENT.

THE MAJORITY OF CARLSBAD VOTERS SUPPORT A $0.01 ON THE DOLLAR SALES TAX INCREASE.

THAT IS VERY HIGHLY MISLEADING.

LESS THAN 900 PEOPLE WERE SURVEYED.

THIS IS NOT A MAJORITY OF THE VOTERS AND IT'S TOO SMALL OF A SAMPLE TO BE STATISTICALLY SIGNIFICANT.

THE FULL TRUTH IS THAT THE SURVEY QUESTION THAT WAS GIVEN TO THOSE CARLSBAD VOTERS, THEY HAD TWO CHOICES RAISE THE SALES TAX OR PERMIT MARIJUANA DISPENSARIES IN CARLSBAD.

HOW WOULD YOU ANSWER THAT? EXACTLY. I BELIEVE THE CITY HAS MANY OTHER OPTIONS FOR REVENUE ENHANCEMENT AND JUMPING TO RAISE THE SALES TAXES, JUST GRABBING FOR LOW HANGING FRUIT.

[01:35:02]

THE NUMBER OF EMPLOYEES AND THE MONEY THEY COST.

THE CITY IS RAISED SIGNIFICANTLY SINCE 2017, BUT THE CITY'S OFFERED MORE SERVICES AND PROGRAMS SINCE THEN.

HOWEVER, SOME OF THESE DO BRING IN REVENUE, AND OTHERS WERE DESIGNED TO SAVE THE CITY MONEY IN THE LONG RUN, LIKE KEEPING US OUT OF COURT.

BUT SURELY ALL THESE NEW HIGH LEVEL MANAGEMENT TYPES CAN COME UP WITH CREATIVE WAYS TO ENHANCE REVENUE WITHOUT HAVING TO INCREASE THE SALES TAX AT THAT BUDGET MEETING LAST APRIL.

THE DISCUSSION ON RAISING SALES TAXES WAS CAPPED BY MR BLACKBURN, NOTING THAT CARLSBAD FOLKS OF ALL POLITICAL PERSUASIONS AGREED FOR ONCE NO NEW SALES TAX INCREASE.

LET'S NOT VISIT THIS TOPIC AGAIN.

THANK YOU. THAT CONCLUDES OUR SPEAKERS.

THANK YOU. QUESTIONS FROM COUNCIL.

MS.. BHAT-PATEL.

YES, THANK YOU.

THANKS FOR THE PRESENTATION.

I KNOW WE'VE TALKED ABOUT THIS QUITE A BIT AND APPRECIATE THE UPDATE AS TO WHERE WE'RE AT.

AND I KNOW THAT WE'VE ALL RECEIVED FEEDBACK WITH REGARDS TO THIS, SO I'LL GO THROUGH SOME QUESTIONS THAT I'VE RECEIVED AND THEN OF COURSE, QUESTIONS THAT I MYSELF HAVE AND BEAR WITH ME BECAUSE THERE'S QUITE A FEW.

SO HOPEFULLY MAYBE I'M PREEMPTIVELY GETTING SOME QUESTIONS ANSWERED THAT MY COLLEAGUES MIGHT ASK.

SO I'LL START OFF WITH WHAT ARE SOME WAYS THAT WE AS AN ORGANIZATION AND YOU COVERED THIS, BUT I JUST WANT TO REEMPHASIZE AND BULLET POINT, UM, YOU KNOW, AS AN ORGANIZATION, OPTIMIZING SERVICES AND CUTTING COSTS SO THAT WE'RE REALLY THINKING OF WAYS TO SAVE MONEY.

CERTAINLY. LET'S SEE.

IN 2018, PUBLIC WORKS ADMIN DEVELOPED A FORMAL PROCEDURE TO STAFF TO STANDARDIZE AND STREAMLINE REPORTS AND STAFF ONBOARDING PROCEDURES.

2018 CROSS TRAINING STAFF IN THE LIBRARY AND CULTURAL ARTS AND DIVISION PROCEDURES AND PRACTICES TO PROMOTE EFFICIENCY, STAFF ENGAGEMENT AND A SHARED UNDERSTANDING OF PURPOSE. WE REALIGN THE CITY ORGANIZATIONAL STRUCTURE IN 1920 TO EMPOWER DECISION MAKING AT THE RIGHT LEVELS OF MANAGEMENT TO ENSURE THAT WE'RE STILL ABLE TO DELIVER UTILITIES.

DID THE ADVANCED METERING INFRASTRUCTURE TECHNOLOGY, WHICH ALLOWS STAFF TO QUICKLY ALERT CUSTOMERS OF HIGH WATER USAGE OR POTENTIAL LEAKS.

ALSO IN 20 1920, PUBLIC WORKS SPECIFICALLY GENERAL SERVICES SAVE 75,000 BY COMPLETING AN ELECTRICAL METERING SPLIT AT STAGECOACH AND CALVERA.

2019 PUBLIC WORKS ADMIN REDUCED CONTRACT EXECUTION TIME BY 60% THROUGH THE IMPLEMENTATION OF DOCUSIGN, WHICH IS AN ELECTRIC SIGNATURE AND EGIS INSURANCE COMPLIANCE TRACKING SYSTEM AND ALSO IN 20 ARE SUSTAINABLE MATERIALS MANAGEMENT DEVELOPED EFFECTIVE CONTRACT MANAGEMENT MONITORING MEASURES WITH NEW CONTRACTORS TO ENSURE ACCOUNTABILITY AS WELL AS BEST VALUE FOR THE CONTRACTED SERVICES.

ALSO IN 20 PUBLIC WORKS ADMIN REALIGNED THE PUBLIC WORKS BRANCH INTO A FULL ASSET MANAGING DEPARTMENTS, INCLUDING RESTRUCTURING THE FORMER GENERAL SERVICES MANAGEMENT INTO FLEET AND FACILITIES DEPARTMENT, TRANSFERRING STREETS AND STORMWATER MAINTENANCE INTO THE TRANSPORTATION DEPARTMENT AND CHANGING THE CONSTRUCTION MANAGEMENT AND INSPECTION DIVISION INTO A STANDALONE DEPARTMENT WITHIN THAT BRANCH.

AGAIN, WE'RE ABLE TO ACHIEVE EFFICIENCIES THROUGH THAT BY COMBINING LIKE WORK COMMUNITY ENGAGEMENT REDUCED HOUR.

ALSO IN 20 REDUCED OUR PRINTING AND MAILING COSTS BY UTILIZING NEW DIGITAL COMMUNICATION CHANNELS IN 2122.

THE OFFICE OF THE CITY MANAGER COMBINED THE CITY CLERK'S OFFICE WITH THE POLICY AND LEADERSHIP DIVISION TO STREAMLINE PROCESSES AND ADD EFFICIENCIES IN OUR DAY TO DAY OPERATIONS OF COUNCIL AND THE CITY CLERK.

WE ALSO CONTINUE TO EVALUATE AND UPDATE POLICIES AND PROCEDURES WITH THE GOAL OF ENSURING THAT THEY'RE RELEVANT, MODERNIZED AND EFFICIENT AIR CONDUCTED MULTIPLE EXECUTIVE RECRUITMENTS WITHOUT THE USE OF INDEPENDENT CONTRACTORS.

MEANING WE TOOK THIS WORK ON IN-HOUSE VERSUS HAVING TO CONTRACT AND PAY HUNDREDS OF THOUSAND DOLLARS FOR THOSE RECRUITMENTS.

FINANCE IMPLEMENTED THE USE OF ELECTRONIC SIGNATURES FOR DEPARTMENT AND ORGANIZATIONAL DOCUMENTS TO STREAMLINE ROUTING AV APPROVALS AND REDUCE PAPER WASTE, AS WELL AS IMPLEMENTED SEVERAL INTERNAL AUDIT RECOMMENDATIONS, INCLUDING THE ADDITIONAL GUIDANCE ON THE TAXABILITY OF TRANSIENT RENT RECEIPTS ON THE CITY'S WEBSITE.

[01:40:01]

WOULD YOU LIKE ME? NO, YOU DON'T HAVE TO KEEP GOING.

BUT THANK YOU. I THINK SO.

I APPRECIATE IT.

AND I JUST I THOUGHT OF THIS QUESTION RANDOMLY AND APPRECIATE THAT THE CITY MANAGER WAS PREPARED, PREPARED WITH ALL THOSE ANSWERS.

I THINK JUST AND IT CLEARLY SHOWS THAT WE'VE HAD QUITE, QUITE A BIT OF WORK THAT WE'VE BEEN DOING BEHIND THE SCENES.

SO I'LL KEEP KEEP GOING.

AND REALLY BRIEFLY, IT SEEMS LIKE BASED ON WHAT WAS SHARED IN THE SLIDES WITH REGARDS TO THE EXAMPLES FOR ITEMS THAT WE'VE WORKED ON IN THE PAST AND THINGS THAT WE'VE ADDED ON, A LOT OF THEM WERE ABOUT WERE REGARDING PUBLIC SAFETY.

WOULD THAT BE ACCURATE? THAT'S CORRECT. OKAY, GREAT.

AND THE HOMELESSNESS.

HOMELESSNESS PIECE THAT WE INCLUDED, WHICH WAS $2.1 MILLION THAT WOULD ALSO BE UNDER.

THE POLICE DEPARTMENT AND THEN SOME COMPONENT WOULD BE UNDER HOUSING AND HOMELESSNESS SERVICES.

THAT'S CORRECT. OKAY, GREAT.

AND. I KNOW THERE'S BEEN MENTION AROUND CUTTING SERVICES OR DECREASING STAFF, AND I'D LIKE TO ASK WHAT THIS WOULD MEAN. FIRST OF ALL, FINANCIALLY, IN TERMS OF OVERALL, I KNOW WE'VE BEEN TALKING ABOUT OPTIMIZATION AND TRYING TO REDUCE SERVICES. WOULD THIS IN THE LONG TERM ACTUALLY MEAN THAT WE WOULD BE ABLE TO SUSTAINABLY? AVOID CROSSING OF THE LINES.

I THINK THAT'S A DIFFICULT QUESTION TO GIVE A DEFINITIVE ANSWER TO TEN YEARS DOWN THE LINE.

YOU KNOW, BASED ON THE FORECAST THAT WE LOOK AT THE MAGNITUDE OF, YOU KNOW, THE CHANGES TO THE ESTIMATED SURPLUS OR DEFICIT, IT GROWS INCREASINGLY EVERY YEAR.

AND WE'RE TALKING ABOUT A LOT OF DOLLARS DOWN THE ROAD.

I WOULD SAY, YOU KNOW, THE FIRST STEP IS IF THAT IS THE CITY COUNCIL'S DIRECTION, WE WOULD NEED TO AS STAFF GO BACK AND BEGIN THE EVALUATION DETERMINATION PROCESS IN TERMS OF, OKAY, WELL, EVEN BEFORE THAT, RIGHT, WE WOULD WANT TO DEVELOP A ALMOST A MATRIX. HOW ARE WE GOING TO PRIORITIZE OUR SERVICES AND OUR PROGRAMS AND REALLY CONVERT TO TO MORE OF A PRIORITY BASED BUDGETING AND THROUGH THE BEST OF OUR ABILITIES, MAKE OUR PROFESSIONAL RECOMMENDATIONS FOR THE CITY COUNCIL TO CONSIDER.

IT STARTS THERE.

IT'S THEN FACTORING IN THE COST SIDE OF IT.

AND ARE WE ARE WE MEETING THE NEEDS IN TERMS OF PUSHING THAT DEFICIT OUT INTO INTO FUTURE YEARS? SO VERY DIFFICULT TO ANSWER RIGHT IN THIS MOMENT.

THERE'D BE A LOT OF WORK AND ANALYSIS TO GO INTO IT, BUT IT WOULD BE SOMETHING THAT WE WOULD WANT TO HAVE A VERY THOROUGH AND DETAILED PROCESS BEFORE JUST BRINGING RECOMMENDATIONS FOR CITY COUNCIL TO CONSIDER.

OKAY. AND.

ONE. ONE WAS THE LAST TIME THAT WE LOOKED AT OUR SALES TAX AND TRANSIT OCCUPANCY TAX IN TERMS OF.

YOU KNOW, THINKING, EVEN THINKING ABOUT INCREASING.

SO IF I RECALL CORRECTLY, I DON'T BELIEVE SALES TAX HAS EVER BEEN INCREASED.

AND IF CINDY, IF YOU HAVE THE 1990 FIGURE, 1990, TRANSIENT OCCUPANCY TAX WAS LAST INCREASED IN 1990, 1990.

OKAY, GREAT.

AND THEN.

JUST TO REITERATE IN TERMS OF THE DIFFERENT NUMBERS, AND I JUST WANT TO PUT IT OUT THERE, IF THERE WAS A 1% SALES TAX INCREASE, IT WOULD BE ABOUT APPROXIMATELY $40 BILLION A YEAR.

THAT'S CORRECT. TRANSIT OCCUPANCY TAX WAS APPROXIMATELY $6 BILLION, AND THEN PARCEL TAX WAS AROUND 4.1 MILLION.

RIGHT. AND IT'S IMPORTANT TO CLARIFY, TOO, THE $40 MILLION FROM SALES TAX THAT ASSUMES A FULL CENT RIGHT.

THERE'S STILL OPTIONS TO LOOK AT A THREE FOURTHS CENT OR A HALF CENT OR EVEN A QUARTER CENT, AND WE WOULD BRING THAT DOWN PROPORTIONALLY.

SO 10 MILLION, 20 MILLION, 30 MILLION, 40 MILLION.

AND AGAIN, PARCEL TAX, THE NUMBER THAT THAT WAS PRESENTED WAS REALLY JUST FOR, FOR CONTEXT, IT WOULD BE AT THE DISCRETION OF CITY COUNCIL IN TERMS OF HOW WE WANTED TO STRUCTURE THAT THAT MEASURE COMPARED TO THE TOTAL AMOUNT OF REVENUE IT WOULD GENERATE.

OKAY. AND JUST FOLLOWING ALONG WITH THAT, I KNOW THERE WAS A QUESTION AROUND THE SURVEY AND I KNOW IT'S ON PAGE TEN THAT WE DO MENTION.

A MAJORITY OF THE VOTERS SUPPORTED IT.

JUST CURIOUS IF WE COULD TALK ABOUT IF WE HAVE THAT.

IF NOT, IF WE DON'T HAVE THAT DATA TOTALLY.

OKAY. YOU KNOW WHAT THE NUMBER WAS WITH REGARDS TO WHO HOW MANY PEOPLE?

[01:45:07]

AND I'M GOING TO BRING UP JASON HABER, INTERGOVERNMENTAL AFFAIRS DIRECTOR.

JASON WAS THE INDIVIDUAL, THE STAFF MEMBER THAT WAS POLLING ON THIS SURVEY.

JASON. YES.

GOOD EVENING. THANK YOU, MR. CITY MANAGER.

GOOD EVENING, MR. MAYOR AND CITY COUNCIL MEMBERS.

JASON HABER. SO TO GO OVER SOME OF THE METHODOLOGY ON THE STUDY THAT WAS DONE LAST YEAR AROUND SALES TAX, THAT WAS A RANDOM SAMPLE OF 894 REGISTERED VOTERS THAT WERE DETERMINED LIKELY TO PARTICIPATE IN THE NOVEMBER 20TH, 22 ELECTION.

WE TOOK A MIXED METHOD APPROACH ON RECRUITMENT BY EMAIL, TEXT AND TELEPHONE, AND WE DID DATA COLLECTION BY TELEPHONE AND ONLINE, CONDUCTED ABOUT 17 MINUTE INTERVIEWS, SURVEYS WITH THOSE RESPONDENTS, AND THE SURVEY HAD AN OVERALL MARGIN OF ERROR AT 3.3%.

OKAY, GREAT. THANK YOU.

AND DID WE DID WE COLLECT ANY DEMOGRAPHIC INFORMATION ON THAT OR WAS IT JUST WHEN WE CONTACTED THOSE FOLKS, IT WAS JUST BASED ON LIKELIHOOD OF VOTING. AND I'M JUST IT'S JUST OUT OF CURIOSITY, WHILE YOU WERE SPEAKING, I WAS THINKING ABOUT THAT.

SO JUST CURIOUS IF THERE WAS ANY DEMOGRAPHIC INFORMATION ASSOCIATED WITH THAT.

YES. THANK YOU, COUNCIL MEMBER WE DID BREAK OUT SOME DEMOGRAPHIC INFORMATION BY LENGTH OF RESIDENCE, GENDER, CHILD AND HOME OWNERSHIP, AS WELL AS AGE AND PARTY AFFILIATION.

OKAY. THANK YOU.

AND JUST A COUPLE COUPLE LAST QUESTIONS.

HOW MUCH HOW MUCH DO WE HAVE? THIS IS BACK TO ZACH.

SO THANKS, JASON.

HOW MUCH DO WE HAVE IN RESERVES? THE CURRENT.

WE ENDED FISCAL YEAR 2022 WITH 59%.

THAT WAS THE THE GENERAL FUND RESERVE RATIO IN TERMS OF DOLLARS.

I BELIEVE IT CAME OUT AT $109 MILLION.

GREAT. THE TOTAL RESERVE BALANCE.

THANK YOU. AND IF YOU HAVE THIS NUMBER, HOW MUCH HAS THAT GROWN IN THE LAST FIVE YEARS? I DON'T HAVE THAT READILY AVAILABLE, BUT I CAN FIND IT.

NO WORRIES. YEAH, NO WORRIES AT ALL.

OKAY. AND THEN IT SOUNDS LIKE TONIGHT WE WOULD HAVE THE ABILITY TO GET MORE INFORMATION ON SOME OF THESE OPTIONS THAT WE HAVE INSTEAD OF JUST TAKING ACTION.

AND THEN I KNOW, YOU KNOW, WE'VE TALKED ABOUT POTENTIALLY HAVING THE OPPORTUNITY ONCE WE HAVE THAT INFORMATION, TO PUT IT TO THE VOTERS.

IS THAT A POSSIBILITY? ABSOLUTELY. OKAY, GREAT.

SO THAT DECISION COULD BE DECIDED BY THE PEOPLE OF CARLSBAD.

THAT'S CORRECT. SO ULTIMATELY, YES.

OKAY, GREAT.

PERFECT. I THINK THOSE ARE ALL MY QUESTIONS FOR NOW.

THANKS. MR. ACOSTA. YES.

THANK YOU. I JUST HAVE.

YOU MIGHT NOT WANT TO LEAVE, MR. HABER. I'M GOING TO ASK SOME MORE QUESTIONS ABOUT SURVEY IN A SECOND.

I THINK MY FIRST QUESTION, THOUGH, IS FOR MR. CROUCH ABOUT INFLATION.

SO OVER THE PAST FEW YEARS, CAN YOU TELL US WHAT THE INFLATION PER YEAR WAS? SURE. WHEN IT FIRST SPIKED? I BELIEVE I MENTIONED PREVIOUSLY AS OF JANUARY 2022, INFLATION WITHIN THE COUNTY WAS 8%.

AS OF JANUARY 2023, IT WAS 6.4%.

OKAY. THAT'S JANUARY 20TH, 22 AND JANUARY 2023.

WHAT ABOUT THE PREVIOUS YEAR? 21. PREVIOUS YEAR.

I CAN I CAN PULL THAT QUICKLY.

IT'S OKAY IF YOU CAN'T FIND IT.

I'LL BE THERE IN JUST A MINUTE.

BUT IF YOU. OKAY, YOU CAN KEEP LOOKING FOR IT AND I'LL.

I'LL MOVE ALONG. THANK YOU.

SO. SO I'M HEARING JANUARY 20TH, 22 WAS 8%.

I MEAN, WE REMEMBER WE REMEMBER READING THIS IN THE NEWS.

I JUST WANT TO UNDERSCORE THIS POINT.

AND THEN JANUARY 20TH, 23, IT WAS AT 6.4%.

AND THAT MEANS INCREASES IN COSTS ALL AROUND IN THE CITY AND WITH OUR WORKFORCE, ETCETERA.

SO I WANT TO GO BACK TO THE SURVEY AND WHEN IT WAS DONE AND KIND OF HOW PEOPLE WERE FEELING WITH RELATION TO INFLATION BACK THEN, THE SURVEY RESULTS WERE PRESENTED TO US IN APRIL 2022.

WHEN WAS THE SURVEY CONDUCTED? THANK YOU. COUNCIL MEMBER. THE SURVEY WAS CONDUCTED MARCH 11TH THROUGH MARCH 17TH OF 2020, 2022, MARCH 2022.

[01:50:01]

IT WAS MENTIONED IN PUBLIC COMMENT LIKE WAS THERE SOME KIND OF JUXTAPOSITION BETWEEN RAISED SALES TAX VERSUS CANNABIS? THE PRESENTATION WAS NOT OFFERED AS AN EITHER OR.

WE DID SAMPLE QUESTIONS ON BOTH OF THOSE TWO TOPICS, BUT INDEPENDENT OF ONE ANOTHER.

SO A SERIES OF QUESTIONS SPECIFICALLY RELATED TO SALES TAX AND THEN A SERIES OF QUESTIONS SPECIFICALLY RELATED TO CANNABIS AND THE CANNABIS QUESTIONS RELATED TO BASICALLY IT DIDN'T RUN A SAMPLE MEASURE FOR RESPONDENTS TO RESPOND TO. IT SIMPLY GOT VOTER ATTITUDES ABOUT WHETHER THEY SUPPORTED THE IDEA OF CANNABIS BUSINESSES LOCATED IN CARLSBAD.

AND IN THE EVENT THAT CANNABIS BUSINESSES WERE PERMITTED IN CARLSBAD, WOULD YOU SUPPORT A TAX? SHOULD THEY BE TAXED? GREAT.

THANK YOU. I REMEMBER WHEN THE SURVEY RESULTS WERE PRESENTED TO US IN APRIL OF 2022, AND IT WAS AS PART OF A SESSION, A WORK SESSION THAT WE HAD AS A COUNCIL WITH THE PUBLIC TO TALK ABOUT CAPITAL IMPROVEMENT PROJECTS.

AND WE THIS WAS KIND OF A BEGINNING OF ONE OF THE MEETINGS WHERE WE TALKED ABOUT RAISING REVENUE.

SO I JUST WANT TO KIND OF GO BACK TO WHERE WE WERE IN EARLY 2022 WITH PRICES GOING UP AND PEOPLE STARTING TO EXPERIENCE A BIT OF A PINCH AND HOW PEOPLE FILLING OUT THE SURVEY MAY HAVE BEEN FEELING.

AND THEN WE'VE SEEN THIS KIND OF PROLONGED INFLATIONARY PERIOD.

I'M WONDERING IF MR. CORI HAD ENOUGH TIME TO FIND THE NUMBER.

I DID. THANK YOU.

CPI AS OF JANUARY 2021 WAS 1.7%, 2.3% AND 2.6% IN THE THROUGHOUT THAT YEAR.

JANUARY'S OKAY.

OKAY. SO IS IN THE TWOS AND THEN 2021 LOW INFLATION UNDER 2% AND THEN BY 2022 JUMPED TO 8%.

I FEEL LIKE IT WAS HIGHER. IT WAS LIKE 8.5% SOMETIME DURING THAT YEAR AND THEN BACK DOWN A LITTLE BIT, 6.4%.

BUT BUT OBVIOUSLY, PEOPLE HAVE BEEN GOING THROUGH A BIT OF A ROLLER COASTER WITH REGARD TO COST OF GOODS GOING TO THE GROCERY STORE AND EGG SHORTAGES AND EVEN DURING THE PANDEMIC TOILET PAPER, ANOTHER GOOD SHORTAGES.

SO JUST KIND OF UNDERSTANDING HOW THE PUBLIC IS FEELING, BECAUSE THESE ARE WHAT WE'RE TALKING ABOUT WHEN WE TALK ABOUT RAISING REVENUE.

IT'S NOT JUST US FINDING WAYS TO COVER OUR COSTS.

IT'S US GOING TO THE PUBLIC AND SAYING, HOW DO YOU FEEL ABOUT THIS? BECAUSE THEY'RE GOING TO HAVE TO VOTE ON THIS.

SO I JUST WANT TO GET A CLEAR PICTURE OF OF HOW PEOPLE ARE FEELING.

IT DOES SEEM THAT THAT RANDOM SAMPLING OF LESS THAN 900 PEOPLE IS A VERY TINY UNIVERSE TO SAMPLE.

I'M NOT A PROFESSIONAL BOWLER, AND I KNOW THAT WE HIRED PROFESSIONAL BOWLERS, POLLING FIRMS, SO THEY MUST HAVE FELT THAT THEY PICKED THE RIGHT SAMPLING.

BUT IT DOES SEEM SEEM VERY SMALL.

AND I REMEMBER AT THE END OF THAT CONVERSATION THE COUNCIL DECIDED NOT TO TAKE ACTION BECAUSE WE WEREN'T FEELING LIKE IT WAS THE RIGHT THING AT THAT TIME. AND THAT WAS APRIL 20TH, 22.

WE HAVE A NEW COUNCIL DYNAMIC, NEW COUNCIL MAKEUP RIGHT NOW, SO I'M LOOKING FORWARD TO HEARING FROM MY COLLEAGUES.

THANK YOU. MR. BURKHOLDER THANKS.

SO JUST STAYING ON TRACK WITH THE SURVEY.

SEEING THIS ON THE AGENDA TONIGHT KNOWING THAT SALES TAX IS A POTENTIAL REVENUE DRIVER.

I WENT BACK TO TRUE NORTH'S REPORT FROM THAT APRIL MEETING, AND I FOUND THAT SURVEY OF 894 PEOPLE.

AND I ALSO SAW IN OUR STAFF REPORT IT REFLECTED THAT MAJORITY OF CARLSBAD RESIDENTS WOULD BE OKAY WITH A TAX INCREASE.

HOWEVER, THAT'S NOT WHAT WAS REFLECTED.

IF WE'RE BEING TRUE TO THE REPORT FROM TRUE NORTH, 23% SAID DEFINITELY YES ON A TAX INCREASE AND 34% SAID PROBABLY YES.

WELL, THAT'S NOT A YES.

THAT'S A PROBABLY.

SO THE YES IS ARE 23%.

IF YOU LOOK IN THAT SAME REPORT, 19% SAID NO, 19 AND 23 IS NOT VERY FAR APART.

SO I WOULDN'T WANT TO PUT ALL OF MY EGGS IN ONE BASKET JUST TO KEEP ON THE THEME OF EGGS FOR THAT TO SAY THAT VOTERS SUPPORT THAT, PARTICULARLY WITH WHAT WE'RE SEEING WITH THE ECONOMIC FORECAST AND WHAT WE'RE LIVING ACTUALLY DAY TO DAY HERE.

SO THAT'S ALL I HAVE FOR THAT.

MR. HABER, IF YOU DON'T WANT TO SIT AT THE TABLE ANYMORE, I DON'T HAVE ANYTHING MORE ON THE STUDY.

BUT GOING THROUGH THIS REPORT AND SEEING THE MESSAGE AND I'M QUOTING FROM THE REPORT, THE INCREASE IN EXPENDITURES OVER THE LAST TEN YEARS WAS PARTLY THE RESULT OF THE CITY ADDING STAFF TO MAINTAIN ITS HIGH LEVEL OF SERVICE.

SO I WANTED TO LOOK BACK TEN YEARS, AND I DID.

I PULLED THE BUDGETS FROM 2010 TO 2022, AND I ALSO PULLED POPULATION AND STAFF NUMBERS DURING THAT SAME PERIOD.

IN 2020 TEN, WE HAD ABOUT 105,000 PEOPLE IN CARLSBAD AND WE EMPLOYED ABOUT 837 STAFF, FULL TIME PEOPLE

[01:55:09]

THIS DIDN'T HAVE ANYTHING TO DO WITH PART TIME.

THESE ARE FULL TIME AND PART TIME EQUIVALENT FULL TIME.

SO 837 AT THAT TIME SKIPPED FIVE YEARS AHEAD TO 2015.

THE BUDGET AT LEAST SAID THAT THE POPULATION WAS ABOUT 110,000 PEOPLE.

WE DIDN'T MAKE ANY STAFF IMPROVEMENTS THEN WE HAD A 0% CHANGE, 837 FOLKS.

AND THESE ARE ESTIMATES BECAUSE DEPENDING ON WHAT REPORT YOU LOOK AT, YOU GET A LITTLE BIT DIFFERENT NUMBER.

NOT HUGELY DIFFERENT, BUT DIFFERENT BECAUSE STAFFING CHANGES GO FAST FORWARD TO 2020.

WE DID A ABOUT 114,000 PEOPLE HERE AND WE SKIPPED FROM 837 TO 934 PEOPLE.

THAT'S ALMOST 100 NEW PEOPLE STAFF HIRED ON IN THAT TIME WITH AN INCREASE OF 3.64% IN POPULATION.

IF YOU MOVE TO 2022, WE HAVE ABOUT 116,000 PEOPLE AND WE INCREASED STAFF BY 5.7%, WHICH IS ANOTHER 53 PEOPLE.

YOU KNOW, IF YOU LOOK AT THAT, YOU KNOW, THAT'S 12 YEARS.

IF YOU LOOK 12 YEARS, WE HAVE INCREASED THE POPULATION ALMOST 10.5%, BUT WE'VE INCREASED STAFF 18% AT LEAST.

AND THAT'S NOT INCLUDING PART TIME FOLKS.

I GUESS. CITY MANAGER IT SOUNDS LIKE YOU'VE DONE A FANTASTIC JOB WITH SO MUCH REDUCTION IN USE OF TECHNOLOGY.

THAT IS WONDERFUL. I THINK WE ABSOLUTELY NEED TO EMBRACE THAT.

BUT I GUESS I'M TRYING TO UNDERSTAND WHY WE NEED SO MANY WARM BODIES.

AND I ALSO WOULD LIKE TO GO BACK TO THAT SLIDE THAT TALKS ABOUT.

THE OPTIONS AND IT TALKS ABOUT MR, THE THE SERVICE LEVELS, THE EFFICIENCIES, THE THINGS THAT WE WOULD HAVE TO CUT.

ESSENTIALLY, THE OPTIONS THAT WE HAVE.

AND WHILE WE'RE TALKING ABOUT THAT OR WHILE WE'RE WAITING ON THAT, I WOULD JUST GO BACK TO THE INCREASE IN STAFF IS PART OF THE STRUCTURAL DEFICIT.

IT'S HIRING PEOPLE THAT WE PERHAPS DON'T NEED.

SO IF THERE'S DIRECTION GIVEN TONIGHT, I HOPE THAT WE'RE CONSIDERING THAT BECAUSE WE HAVE 107 MANAGEMENT POSITIONS THAT ARE SALARIES OF AN AVERAGE OF $112 PER YEAR, THAT'S AVERAGE AT THE MINIMUM BASE PAY LEVEL.

THAT'S 107, FOLKS.

NOW, I'M NOT I DON'T I WISH WE HAD 200,000 PEOPLE WORKING IN WHATEVER DOING, YOU KNOW, ONE ASSISTANT PER PERSON HERE IN CARLSBAD.

BUT WE HAVE TO BE REAL JUST BECAUSE WE MAY WANT TO DRIVE A MASERATI IF WE HAVE A HONDA BUDGET AND THAT'S NO DIG ON EITHER OF THOSE CARS.

WE HAVE TO LIVE WITHIN OUR MEANS.

AND THIS IS NOT A REFLECTION OF THAT.

DO YOU FIND THAT DID YOU FIND THAT SLIDE? I APOLOGIZE.

I WAS GOING TO CLARIFY. I'M NOT SURE WHICH SLIDE YOU'RE TALKING TO.

WE DID LIST A NUMBER OF EXPANDED SERVICES AND PROGRAMS. NO, NO, NOT THAT ONE.

I WAS GOING TO SAY THANK YOU FOR PUTTING SOME TAGS ON THAT BECAUSE I KNOW I'D ASKED FOR THAT IN THE IN THE BRIEFING.

NOW I'M TALKING ABOUT THE ONE WHERE WE HAVE ESSENTIALLY FOUR OPTIONS.

WE CAN RAISE TAXES ON PEOPLE, WE CAN CUT SERVICES, WE CAN BLAH, BLAH, BLAH AND BLAH, BLAH, BLAH.

YOU GUYS. I'M NOT. YOU REMEMBER? RIGHT? FOUR BOXES.

RIGHT AND RIGHT.

SO THIS IS SORT OF A WE SHOULD HAVE ANOTHER BOX.

I MEAN, IT WOULDN'T BE CUTE IN A BOX ANYMORE BECAUSE IT WOULD HAVE ANOTHER BOX.

BUT THE FINAL OPTION COULD BE TO CUT STAFF, DO MORE WITH LESS THAT AND THAT IS SO DECREASING SERVICES.

SO STAFF ARE TIED TO SERVICES.

OKAY. SO IF WE DECREASE OUR STAFF, WE'LL BE DECREASING THE SERVICE LEVELS.

BUT THAT'S KIND OF A THAT'S KIND OF THREATENING WAY TO SAY THAT BECAUSE YOU'RE ESSENTIALLY SAYING SERVICES FROM MY PERSPECTIVE, ARE FIRE AND POLICE AS WELL.

THOSE ARE GREAT SERVICES.

THOSE ARE THE MAIN SERVICES THAT WE SHOULD BE SUPPLYING TO OUR RESIDENTS.

AND SO IF IF THERE IS A IF THERE IS AN UNDERLYING ISSUE THERE OF DECREASING SAFETY FOR RESIDENTS IN CARLSBAD, THAT SHOULD BE IN ITS OWN CATEGORY. THANK YOU.

AND LET'S SEE.

BY THE WAY, WE TALKED ABOUT CANNABIS, EVEN THOUGH WE'RE NOT ADDRESSING THAT.

I KNOW VISTA HAS LIKE 11 DISPENSARIES, SO IT'S NOT LIKE JUST ONE BRINGS IN $5 MILLION.

IT'S AN INTENSE AMOUNT OF DISPENSARIES.

SO, YOU KNOW, I JUST THINK WHEN WE TALK ABOUT THIS, THE BUDGET AND MOVING FORWARD, LOOKING AT EVERY ECONOMIST THAT I AM FOLLOWING AND READING DOES NOT PROJECT THE FUTURE WELL.

SO YEAH, PERHAPS IT'S NOT TIME TO BUILD AND DEVELOP THINGS THAT WE CAN WAIT ON KNOWING THAT GOODS AND SERVICES ARE GOING TO GO

[02:00:09]

SO I WOULD LIKE FOR THAT TO BE REFLECTED THAT THAT ONE OF THE OPTIONS THAT WE HAVE IS TO NOT HIRE ANY MORE PEOPLE AND PERHAPS EVEN DO MORE WITH LESS. CUT.

CUT SOME STUFF AS NEEDED.

THANK YOU. MISS LUNA.

AN AREA THAT I'M INTERESTED IN IS THE REDUCING PENSION DEBT AND THE CONCEPT OF THE UM, IS IT 115? THE TRUST SECTION.

SO WHAT I DON'T SEE IN THIS REPORT AND I KNOW THIS WAS JUST SORT OF GET US TO MARINATE ON THE DIFFERENT OPTIONS IS HOW DOES THAT WORK? HOW WOULD IT AFFECT CURRENT STAFFING LEVELS? IS IT AN OPTION? HOW IS IT PROMULGATED? I KNOW A LOT OF JURISDICTIONS ARE SUFFERING BECAUSE OF THE HUGE PENSION DEBT AND THERE ARE A VARIETY OF OPTIONS OUT THERE FOR EMPLOYEES TO SEEK.

SO I THINK THIS IS GOOD AND THINKING OUT OF THE BOX, BUT I REALLY DON'T KNOW, QUANTIFIABLE NUMBERS.

IN ADDITION TO THAT, A CONCERN THAT I HAVE IS IT'S VERY DIFFICULT TO ATTRACT GOOD QUALITY STAFF.

AND SOMETIMES, I MEAN, THE OLD IDIOM OF, YOU KNOW, YOU GET WHAT YOU PAY FOR.

AND I KNOW THAT THE CALPERS BENEFIT PACKAGE HAS BEEN ONE OF OUR MAJOR LURES TO GET PEOPLE TO COME HERE.

SO I GUESS MATHEMATICALLY, I DON'T KNOW HOW THAT WORKS WITH OUR CURRENT STAFF OR HOW THAT WOULD BE OFFERED TO OTHER STAFF.

IN ADDITION, I THINK THE CITIES, WHICH I DON'T KNOW IF A LOT OF THE OTHER COUNCIL MEMBERS KNOW THIS, BUT THE CITY WAS BRILLIANT IN PAYING DOWN THE PENSION DEBT AHEAD OF TIME.

MOST OTHER JURISDICTIONS ARE IN REALLY FISCAL STRAITS AND HAVE TO CUT SERVICES AND HAVE TO CUT STAFF BECAUSE THEY DIDN'T DO THAT.

AND TO SIT HERE AND LISTEN TO THIS IS VERY ENCOURAGING THAT WE HAVE BEEN ABLE TO PAY THAT DOWN.

SO I THINK THAT IN A WAY DOVETAILS INTO A LITTLE BIT OF WHAT COUNCIL MEMBER BURKHOLDER WAS SAYING IS YOU HAVE THESE EMPLOYEES AND SO WHAT ACTUALLY IS OUR OUR PENSION DEBT YOU HAVE IN HERE, YOU'D LIKE TO REDUCE OUR PENSION DEBT.

I THINK THE PAYOFF IS GOOD, BUT I DON'T HAVE THE NUMBERS, SO I REALLY DON'T KNOW WHAT THE COST SAVINGS ARE.

AND THEN IF YOU COULD FAMILIARIZE US WITH THAT PLAN, YOU DON'T HAVE TO DO IT TODAY, BUT IN OUR NEXT PRESENTATION.

SURE, HAPPY TO.

IN TERMS OF THE TOTAL LIABILITY THAT IS CURRENTLY OUTSTANDING, AND I'LL PREFACE THIS BY SAYING THE INFORMATION THAT CALPERS RELEASES IS OFTENTIMES FROM THE PAST.

AND WE'RE WE'RE LOOKING AT INFORMATION THAT'S USUALLY A YEAR IN ARREARS.

I BELIEVE THE LIABILITY WAS JUST OVER $100 MILLION.

AS OF JUNE 30TH, 2021 IS THE LAST TIME THAT THEY COMPLETED AND PROVIDED THEIR THEIR ACTUARIAL STUDY.

WITH THAT SAID, WHAT WE KNOW TODAY IS FOR FISCAL YEAR 2122, CALPERS DID NOT PERFORM FROM AN INVESTMENT PERFORMANCE STANDPOINT.

WELL, THERE WAS A 6.1% LOSS AND THE GAINS THAT WERE EXPERIENCED IN FISCAL YEAR 2021 WERE EFFECTIVELY NEUTRALIZED OR WASHED AWAY.

SO WE CAN WE CAN ESTIMATE RIGHT NOW THAT THE TOTAL LIABILITY THAT WOULD BE OUTSTANDING WOULD BE ABOUT 200 MILLION.

WHEN IT COMES TO A SECTION 115 TRUST.

THIS IS THIS REALLY DOESN'T HAVE A WHOLE LOT OF IMPACT ON EMPLOYEES AND THE RETIREMENT PLAN ITSELF. A SECTION 115 TRUST.

THIS IS A TAX EXEMPT INVESTMENT TOOL THAT'S USED TO.

IT'S USED TO PRE-FUND.

THE PENSION PROGRAM ITSELF.

BASICALLY WHAT HAPPENS IS IF IF A TRUST WERE TO BE ESTABLISHED.

WE WOULD WE'D BE ACHIEVING A FEW THINGS.

FIRST OF ALL, WE WOULD DO THIS SEPARATE FROM WHAT WE'RE REQUIRED TO CONTRIBUTE TO CALPERS ON AN ANNUAL BASIS.

SO WE WOULD LOOK AT THE GENERAL FUND RESERVE AND SAY, WE WANT TO PUT THIS AMOUNT OF MONEY ASIDE INTO THIS TRUST, AND BY DOING SO WE WOULD BE ABLE TO DIVERSIFY FROM CALPERS INVESTMENT PORTFOLIO, WE WOULD BE ABLE TO CONTROL THE TIMING OF CONTRIBUTIONS, WITHDRAWALS.

AND WHEN WE MADE CALPERS PAYMENTS TO CALPERS ABOVE AND BEYOND WHAT WAS REQUIRED.

AND THERE'S ALSO A POTENTIAL FOR HIGHER RETURN BY INVESTING IN A TRUST OF THIS NATURE.

[02:05:01]

IN OTHER WORDS, THE RISK APPETITE OR THE RISK LEVEL THAT WE'RE COMFORTABLE WITH TAKING A LOT OF AGENCIES THEY'VE EXPERIENCED OVER THE DECADES THROUGH PENSION REFORM AND A LOT OF CHANGES THAT CALPERS HAS IMPLEMENTED, RISING PENSION COSTS FOR EMPLOYERS AND FOR CITIES.

AND IN RESPONSE TO THAT AND IN ANTICIPATION THAT CALPERS VERY WELL LIKELY MAY TAKE FURTHER ACTION TO BETTERING OR TO BETTER POSITION THEIR INVESTMENT PORTFOLIO FOR THE FUTURE.

WHAT THAT REALLY MEANS IS OVER THE LAST 20 YEARS, THEY HAVE REDUCED THEIR TARGET RATE OF RETURN BY FROM 8.15% TO 6.8%.

NOW, THAT'S REALLY GOOD BECAUSE MOVING FORWARD, THERE'S GOING TO BE AN INCREASED LIKELIHOOD THAT THEY CAN MEET THOSE THOSE OBJECTIVES, THOSE TARGET RATES.

IT'S NOT GOOD BECAUSE WHEN YOU FACTOR THAT IN TO HOW THEY CALCULATE THE TOTAL LIABILITY, OUR COSTS GO UP.

AND THE FEAR IS THAT IF CALPERS CONTINUES TO REDUCE THEIR DISCOUNT RATE OR THEIR TARGET RATE OF RETURN, SAY TO 6.25%, THAT WOULD RESULT IN AN ADDITIONAL $120 MILLION IN COSTS THAT THE CITY WOULD BE RESPONSIBLE FOR PAYING OVER THE NEXT 20 YEARS.

A LOT OF AGENCIES HAVE LOOKED AT THIS AND ANALYZED IT AND SAID, WE NEED TO SOLVE THIS NOW AND WHAT CAN WE DO? AND THEY'VE LOOKED TOWARDS THE SECTION 115 TRUST AS ONE OF THOSE OPTIONS.

IT'S NOT TO SAY THAT GIVING CALPERS EXTRA MONEY, LIKE THE CITY OF CARLSBAD, HAS DONE OVER THE LAST SIX YEARS, THAT'S GREAT.

IT'S REDUCING OUR FUTURE INTEREST COSTS.

IT'S INCREASING OUR FUNDED STATUS.

ESTABLISHING A SECTION 115 TRUST IS JUST ANOTHER ALTERNATIVE OPTION WHERE WE CAN MAINTAIN LOCAL CONTROL OVER THOSE DOLLARS WITH THE ABILITY TO POTENTIALLY EARN MORE THAN WE OTHERWISE WOULD BY KEEPING THOSE DOLLARS IN THE GENERAL FUND.

WELL, IF YOU COULD DO A LITTLE SCRATCH TEST AND SHOW ME SOME MATH, I NEED TO SEE SOME INFORMATION AND SOME MATH.

I CAN'T JUST SPECULATE.

AND AS WE ALL KNOW, THE COLAS AND THEN OTHER SPECULATIONS ON CALPERS, IT'S BEEN A WILD, WILD RIDE.

AND THEN I KNOW WE HAVE OUR LEGISLATIVE SUBCOMMITTEE.

AND I GUESS I WOULD ASK, HAVE THERE ANY BEEN ANY DISCUSSIONS WITH RESPECT TO CALPERS AND THE STATE ON WHAT THEIR PLANS ARE? I KNOW THEY'VE CHANGED THEIR INVESTMENT PORTFOLIO A COUPLE TIMES AND AS WELL AS SEEING MEMBERS ON THE CALPERS BOARD.

HAVE WE AS A CITY OR OTHER JURISDICTIONS TAKEN A POSITION ON THAT? COUNCIL MEMBER I CAN JUST SPEAK TO A COUPLE PROPOSALS THAT HAVE GONE TO THE IDEA OF RESTRICTING THE TYPE OF FUNDS AND VEHICLES THAT CALPERS CAN INVEST IN.

AND GENERALLY WE'VE OPPOSED THOSE TYPES OF RESTRICTIONS ON THE SYSTEM SO THAT THEY HAVE THE BEST CHANCE OF ACHIEVING THEIR BEST RETURNS.

BUT I HAVEN'T HEARD ANYTHING THIS SESSION COMING FORWARD THAT WOULD ADDRESS THAT ISSUE.

OKAY. WELL, I THINK MY COLLEAGUES AND I DO JUST HAVE ONE QUESTION OUT OF MY IGNORANCE, BECAUSE I HAVEN'T DEALT WITH CITY COUNCIL BUDGETS, OTHER BUDGETS.

I HAVEN'T HAD TO DEAL WITH TAX INCREASES.

WE DID CHANGE A LOT OF INVESTMENT PORTFOLIOS AND PROGRAMS THAT I RAN AND TOOK THEM OUT OF A COLLECTIVE AND SORT OF DID A LITTLE BIT OF WHAT THE 115 AND I WILL TELL YOU, IT WAS IT WAS A BEAUTIFUL THING.

WE WERE ABLE TO ACTUALLY REDUCE FEES IN THE PROGRAMS THAT I ADMINISTERED.

SO MY QUESTION TO YOU IS, IF YOU'RE LOOKING AT A TOT INCREASE OR YOU'RE LOOKING AT A SALES TAX INCREASE AS FAR AS THE BUDGET, HOW DOES THAT WORK WITH GOING TO THE VOTERS? HOW DOES THAT WORK WITH THE COUNCIL HERE DECIDING MAYBE WE'D LIKE TO LOOK AT THAT AVENUE OR NOT LOOK AT THAT AVENUE.

MAYBE, MR. MAYOR, YOU COULD HELP ME OUT HERE.

I WAS PART OF THE DISCUSSION A YEAR AGO, BUT I'M GOING TO ALLOW STAFF TO GIVE YOU THE INFORMATION.

THEY'LL BE MORE ACCURATE BECAUSE THAT'S WHERE I ORIGINALLY GOT MY INFORMATION.

ALL RIGHT.

IN THE EVENT THAT COUNCIL PROVIDES THIS DIRECTION TO AND AGAIN, THIS IS THIS IS AN OPEN DISCUSSION FOR COUNCIL, IF YOU WANT TO SAY, YOU KNOW WHAT, WE'RE GOOD. WE UNDERSTAND.

AND WE'LL GO BACK AND WE'LL CONTINUE TO DEVELOP OUR BUDGET.

IF COUNCIL WANTS US TO LOOK INTO FURTHER ANY OF THE OPTIONS THAT WERE PRESENTED TODAY, THEN COUNCIL WOULD DIRECT US TO RESEARCH OR DIG DEEPER INTO ONE OR ALL OF THE OPTIONS, AND THEN WE WOULD COME BACK AT A LATER DATE WITH THAT INFORMATION TO INCLUDE TIMELINES.

AND AGAIN, AS IF THERE'S RESOLUTIONS THAT ARE REQUIRED OR AN ORDINANCE THAT WOULD BE CALLING FOR A SPECIAL OR NOT A SPECIAL ELECTION, BUT A GENERAL ELECTION.

[02:10:02]

IT IS THE PEOPLE OF CARLSBAD THAT WOULD VOTE.

AND SO DO YOU TIME THAT FOR A GENERAL ELECTION? I MEAN, IF HE'S BRINGING A BUDGET OR YOUR STAFF, YOU'RE BRINGING A BUDGET TO US IN THE NEXT FEW MONTHS.

AND ONE OF THE COMPONENTS MAY OR MAY NOT BE I'M JUST HYPOTHETICALLY HERE AND YOU'RE LOOKING AT A NOVEMBER ELECTION TO SAVE MONEY. HOW DOES THAT WORK WITHIN THE BUDGET CONTEXT THAT WE'RE APPROVING? WELL, AND AND AS ZACH HAD MENTIONED PREVIOUSLY, THIS YEAR, WE'RE GOING TO BE FINE.

NEXT YEAR WE'RE GOING TO BE FINE.

BUT IN FUTURE YEARS, THAT LINE, THOSE LINES DO CROSS.

AND SO WHAT WE'RE TRYING TO DO IS BE AS STRATEGIC AS WE CAN.

THAT'S WHY WE CAME TO COUNCIL LAST YEAR.

THAT'S WHY WE'RE COMING TO COUNCIL AGAIN WHERE WE'RE, WE'RE SIGNING THE BILLS OR AT LEAST SIGNALING THE BELLS AND SAYING, YOU KNOW, WE WANT TO ADVISE YOU OF THIS COUNCIL. WOULD YOU LIKE US TO, TO LOOK INTO ANYTHING DIFFERENT OR CONTINUE TO JUST DO STATUS QUO? AND AGAIN, WE ARE OBLIGATED AND WE WILL CONTINUE TO SUBMIT A BALANCED BUDGET.

THERE MAY NOT BE AS MANY ORNAMENTS ON THE TREE, THOUGH.

SO FROM ONCE AGAIN, GETTING BACK TO A TIMING.

SO LET'S SAY THE FISCAL YEAR, IT WOULD BE A FOR US TO PUT SOMETHING ON THE BALLOT.

IT WOULD BE A NOVEMBER 20TH, 24 ELECTION.

SO IT WOULD BE AN ANTICIPATION OF THE NEXT BUDGET COMING THROUGH.

THAT'S WHERE YOUR NUMBERS WOULD BE ACCOUNTED FOR.

I'M JUST I'M SORRY. I'M TRYING TO UNDERSTAND THE TIMING.

OKAY. GOOD QUESTIONS.

ONE OF THE THINGS THAT I KEEP HEARING IS A.

WHAT DO THEY CALL IT? A SOUNDING POINT IN THE COMMUNITY IS THAT WE HAVE TOO MANY MANAGERS AND WE WE HAVE A DISPROPORTIONATE NUMBER OF MANAGERS.

WOULD YOU EXPLAIN THAT TO THE TO THE PUBLIC? I WOULD ABSOLUTELY BE THRILLED TO.

THIS IS SOMETHING WHERE MANAGEMENT IS CONSIDERED A BARGAINING GROUP.

SO OUR BARGAINING GROUPS, WE HAVE OUR REPRESENTED LABOR ORGANIZATIONS AND THEN WE HAVE THE UNREPRESENTED GROUP, WHICH HISTORICALLY HAS BEEN CALLED THE MANAGEMENT GROUP. THE MANAGEMENT GROUP HAS SEVERAL CLASSIFICATIONS TO INCLUDE THE CITY TRAFFIC ENGINEER, THE CITY PLANNER, DEPUTY CITY ATTORNEY, FIRE MARSHAL BUILDING, OFFICIAL, COMMUNITY HEALTH NURSE, PRINCIPAL PLANNER, PUBLIC OR PARK SUPERINTENDENT.

PUBLIC WORKS SUPERINTENDENT.

SUPERVISOR. SENIOR ENGINEER.

SENIOR ACCOUNTANT.

SENIOR MANAGEMENT ANALYST.

EXECUTIVE ASSISTANT MANAGEMENT ANALYST.

I THINK YOU ANSWERED MOST OF THAT QUESTION.

I THINK YOU CAN GO ON.

BUT LET ME ASK YOU THIS.

WOULD IT BE MORE APPROPRIATE TO CALL MANAGERS, MANAGERS AND ALL THE OTHER FOLKS WHO FALL UNDER THE MANAGEMENT? THE UNREPRESENTED GROUP CALL THEM SOMETHING OTHER THAN MANAGERS, WOULD THAT MAKE IT MORE ACCURATE AND MORE MORE PALATABLE FOR THE COMMUNITY? IT WOULD BE MORE ACCURATE FOR US TO REFER TO THEM OF WHAT THEY ARE, WHICH IS AN UNREPRESENTED GROUP.

BECAUSE AGAIN, JUST BECAUSE THEY FALL IN THE MANAGEMENT CLASSIFICATION DOES NOT MEAN THAT THEY MANAGE EMPLOYEES.

AND I ALSO NEED TO EMPHASIZE, BECAUSE THIS IS A CRITICALLY IMPORTANT POINT THAT A ALL OF THE EMPLOYEES THAT ARE IN THE MANAGEMENT BARGAINING UNIT OR THE UNREPRESENTED BARGAINING UNIT ARE AT WILL EMPLOYEES.

NOW, WHAT AT WILL MEANS IS THAT THEY SERVE AT THE PLEASURE OF THE CITY MANAGER SO THOSE INDIVIDUALS CAN BE HIRED OR FIRED.

AGAIN, HIRED BASED OFF OF COUNCIL'S WILL TO ALLOW THE POSITIONS TO BE OCCUPIED.

BUT THEN AGAIN, WE CAN SEPARATE THOSE INDIVIDUALS AT ANY TIME, MEANING THERE IS NO APPEAL RIGHTS.

THEY MAY BE TERMINATED AT ANY TIME BY ANY PARTY WITHOUT OR WITH OR WITHOUT CAUSE FOR ANY REASON, SO LONG AS IT IS A LAWFUL REASON FOR DOING SO. AGAIN, NO PROPERTY RIGHTS RELATED TO THE POSITIONS THEY IT IS AN AT WILL EMPLOYMENT.

SO THAT'S THE BENEFIT THAT OF HAVING THIS THIS UNREPRESENTED GROUP.

AGAIN, SOME ARE ACTUAL MANAGERS BUT AS I RATTLED OFF A LOT OF THE THE THE TOPICS OR AT LEAST THE CLASSIFICATIONS THEY'RE NOT JUST MANAGERS. I ALSO NEED TO EMPHASIZE THAT THE REASON THAT WE CALL THEM MANAGERS IS BECAUSE, AGAIN, THE DISTINGUISHING CHARACTERISTICS OF A MANAGEMENT EMPLOYEE OR AN UNREPRESENTED EMPLOYEE DEMONSTRATES LEADERSHIP, COACHING AND MENTORING SKILLS LEADS PROJECT TEAMS ON COMPLEX PROJECTS OR PROGRAMS, APPLIES AND DEVELOPS ADVANCED SOLUTIONS TO COMPLEX OPPORTUNITIES OR PROBLEMS USING ADVANCED PRINCIPLES, THEORIES AND CONCEPTS.

EXPERT IN THE CITY'S POLICIES AND PROCEDURES INDEPENDENTLY EXERCISES JUDGMENT.

SO AGAIN, THERE IS A UNIQUE GROUP OF EMPLOYEES THAT FALL UNDER THAT.

[02:15:03]

THEY'RE ACTUALLY TIED TO A PARTICULAR PROGRAM OR PROJECT.

OKAY? WHEN WE CALL ALL THESE PEOPLE MANAGERS, THE FIRST PERCEPTION, EVEN WITH ME, IS THAT WE HAVE A MANAGER FOR EVERY 2 OR 3 EMPLOYEES, AND THAT'S JUST SIMPLY NOT THE CASE. THAT'S CORRECT. SO I THANK YOU FOR EXPLAINING IT, BUT ALSO CONSIDER CALLING BREAKING OUT.

IF THERE ARE MANAGER CALLING MANAGERS, IF THEY'RE NOT MANAGERS, LET'S CALL THEM SOMETHING DIFFERENT.

WHEN WE TALK ABOUT.

OKAY. I JUST GOT A NOTE. DID YOU WANT TO.

I JUST WANT CLARIFICATION ON THAT, BECAUSE MY UNDERSTANDING IS THAT THE 107 PEOPLE THAT I HAVE ON THE MANAGEMENT SALARY SCHEDULE, BASE PAY ARE THEY DON'T HAVE TO BE NAMED MANAGER, BUT MANAGEMENT SALARY SCHEDULE IS WHAT THEY'RE BEING PAID FROM THAT.

THAT'S CORRECT. OKAY.

THAT'S CORRECT. THEY'RE BEING THEY'RE THEY ARE RECEIVING COMPENSATION.

BUT THIS ALSO IS A GROUP THAT IS NOT OVERTIME ELIGIBLE.

SO THERE MAY I HAVE NO IDEA WHAT THAT'S ALL ABOUT.

DID YOU SAY SOMETHING LIKE SIRI OR SOMETHING? I DON'T KNOW. SO, FOR INSTANCE, IN OTHER LABOR IN GROUPS THAT ARE REPRESENTED BY A COLLECTIVELY BARGAINED ORGANIZATION, THOSE INDIVIDUALS HAVE OVERTIME.

SO I UNDERSTAND THAT.

AND I JUST WANTED TO CLARIFY THAT THEY DON'T HAVE TO HAVE THE NAME MANAGER TO BE ON A MANAGEMENT SALARY SCHEDULE.

AND FOR FURTHER CLARIFICATION, THAT IS NOT INCLUDING POLICE AND FIRE.

THESE ARE CITY STAFF.

AND I THINK THAT SPEAKS TO WHAT YOU WERE KIND OF GETTING AT.

THAT'S WHY I WANTED TO HAVE THE POINT OF CLARIFICATION.

THANK YOU. SEVERAL OF THOSE MANAGEMENT POSITIONS ARE POLICE AND FIRE.

RIGHT. BUT I'M TALKING ABOUT AS FAR AS WHEN WE TALK ABOUT CUTTING STAFF, IT WOULD NOT BE THE FIRE BATTALION OR THE FIRE MARSHAL.

I MEAN, OBVIOUSLY IT WOULDN'T BE.

I WOULD AS I SAID EARLIER, IT WOULDN'T BE TIED TO THE SAFETY OF THE RESIDENTS OF CARLSBAD.

NO, THE IF COUNCIL WERE TO DIRECT US TO REDUCE COUNCIL WOULDN'T DIRECT US TO REDUCE THE FOLLOWING INDIVIDUALS THAT FALLS UNDER THE CITY MANAGER'S AUTHORITY.

BUT COUNCIL WOULD SAY THAT WE WANT TO REDUCE THE BUDGET BY SAY, $1 MILLION.

THEN I WOULD COME BACK WITH WHAT WHAT WE BELIEVE FROM A MANAGEMENT PERSPECTIVE WOULD MEET COUNCIL SATISFACTION AND THEN WE WOULD ASK YOU TO ACT ON THAT. OKAY.

ONE OF THE THINGS YOU SAID GOT A LITTLE BIT DILUTED AND WE'VE TALKED ABOUT IT BACK AND FORTH ABOUT HAVING OUR EMPLOYEES DO MORE WITH LESS.

AND THE BOTTOM LINE IS INFLATION IS GROWING FASTER AND EXPENSES ARE GROWING FASTER THAN OUR REVENUE.

SO THE BOTTOM LINE IS WE EITHER INCREASE REVENUE OR WE DECREASE THE LEVEL OF SERVICE THAT WE'RE GOING TO PROVIDE TO OUR COMMUNITY.

IS THAT A FAIR SIMPLIFICATION? THAT'S FAIR. OKAY.

WHEN WE TALK ABOUT SALES TAX AND I KNOW THIS ISN'T CLOSING STATEMENT TIME, BUT I'M NOT A FAN OF RAISING THE SALES TAX, SO PLEASE DON'T INFER ANY OF THAT FROM MY QUESTIONS.

BUT IS THE STATE SAY THAT SALES TAX HAS A 10% MAXIMUM? IS THAT ACCURATE? 10.2, FIVE, TEN AND A QUARTER WOULD BE THE CAP.

YES. OKAY. SO WHEN CITIES.

RAISE THEIR TAXES, THEIR SALES TAX BY 1%.

THEY'RE LOCKING THAT IN AND THEN THE STATE CAN'T THEN RAISE THE SALES TAX TO 10.25 AND THEN THE CITY IS LEFT OUT IN THE RAIN.

IS THAT ACCURATE? WELL, I BELIEVE CORRECT ME IF I'M WRONG, JASON, BUT THE LOCAL SHARE CAP WOULD BE AT 2%.

SO WITH THE CITY OF CARLSBAD HAVING A11 CENT TAX ALREADY, CURRENTLY, IF AN ADDITIONAL $0.01 TAX WERE APPROVED, THAT WOULD BE IT.

THERE WOULDN'T BE ANY ADDITIONAL SALES TAX INCREASES TO EVER BE CONSIDERED.

OKAY, NOW FOR THE TIME BEING, BECAUSE THE CITY OF CARLSBAD IS AT 1%.

THERE IS THAT 1% AMOUNT OF ROOM, RIGHT? THAT IS, THERE IS AN OPPORTUNITY FOR THAT TO BE SECURED BY ANOTHER JURISDICTION.

AND THERE'S ANOTHER MISINFORMATION GOING AROUND THAT WE HAVE OUR COUNTRY AND A LOT OF OUR SALES SALES TAX REVENUE COMES FROM CAR COUNTRY. WE IN CARLSBAD HAVE A LOWER SALES TAX THAN, SAY, PEOPLE IN VISTA.

THEY PAY A HIGHER SALES TAX.

ONE OF THE MISINFORMATION I'M HEARING IS THAT RIGHT NOW WE HAVE A LOT OF SALES THROUGH CAR COUNTRY BECAUSE PEOPLE FROM VISTA COME TO CARLSBAD TO BUY THEIR VEHICLES BECAUSE THE SALES TAX IS LESS.

EXPLAIN WHY THAT'S NOT AN ACCURATE STATEMENT.

[02:20:03]

RIGHT. SO EXACTLY WITH YOUR CASE, THEY WERE PURCHASING A CAR IN CARLSBAD.

THEY LIVED IN VISTA.

VISTA WOULD RECEIVE THOSE TAXES.

CORRECT. SO TO SIMPLIFY THAT, IF SOMEBODY COMES TO CARLSBAD FROM VISTA BECAUSE THEY THINK THEY'RE GOING TO SAVE 1% ON SALES TAX, THAT'S SIMPLY NOT ACCURATE.

THE CAR DEALER STILL COLLECTS THE VISTA TAX AND SENDS IT TO VISTA.

THAT'S CORRECT. THANK YOU.

WHEN WE TALK ABOUT THE LARGEST REVENUE SOURCE WE HAVE, WHICH IS PROPERTY TAXES, IS THE MAXIMUM THAT CAN GO UP PER YEAR, 2%, 2% IN TERMS OF THE THE ANNUAL ASSESSMENT ROLE AND HOW THE PROPERTY TAXES ARE CALCULATED FROM THAT HAS A 2% CAP EVERY YEAR.

YES. AND THEN IF WE GO THROUGH ANOTHER 2008 RECESSION AND PROPERTY VALUES DECREASE, PEOPLE CAN THEN PETITION TO HAVE THEIR PROPERTY TAXES REDUCED. IS THAT RIGHT? CORRECT. AND THEN THAT MEANS WE WOULD GET LESS MONEY FROM PROPERTY TAXES.

THAT'S TRUE. WHAT ARE THE QUESTIONS THAT COUNCIL MEMBER LUNA ASKED IS WHAT NOW? IF WE IF WE AS A COUNCIL SAY, AND THIS IS WHAT I'M GOING TO END UP SAYING AT CLOSING STATEMENTS, IF WE AT A COUNCIL SAY WE'RE NOT COMFORTABLE WITH A SALES TAX INCREASE, WE DON'T THINK THAT THAT'S AS PALATABLE TO THE COMMUNITY AS MAYBE A TOT INCREASE.

THEN THAT WAY OUR RESIDENTS AREN'T TAKING THE BRUNT OF THE THE TAX INCREASE.

IT'S THE VISITORS FROM OUT OF TOWN WHO ARE STAYING IN OUR HOTELS AND USING OUR SERVICES.

IT'S MY UNDERSTANDING THAT IT'S 10% RIGHT NOW, AND THAT HASN'T CHANGED SINCE 1990.

IS THAT ACCURATE? CORRECT.

OKAY. SO IF WE WERE TO ASK YOU TO BRING THAT BACK, YOU WOULD GO THROUGH ALL OF THE PROS AND CONS, UNINTENDED CONSEQUENCES.

YOU'D SPEAK WITH THE HOTEL OWNERS, GET THEIR INPUT, AND THEN AS THE COUNCIL, IF YOU HAD THREE VOTES ON THE COUNCIL TO SAY, GO FORWARD WITH IT, THAT'S STILL NOT THE FINAL DECISION. IT'LL GO TO THE VOTERS AND THE VOTERS WILL MAKE THE DECISION ON IF THEY WANT THAT TAX INCREASE.

ABSOLUTELY. OKAY.

I THINK THAT'S ALL MY QUESTIONS.

THANK YOU SO MUCH. THANKS FOR BEING SO PATIENT WITH US.

OF COURSE. OKAY. CLOSING STATEMENTS.

OH, MORE QUESTIONS.

SO JUST ANOTHER QUESTION FOLLOWING UP ON YOURS.

SO, FOR EXAMPLE, THE VARIOUS TIMESHARES THAT WE HAVE UP ABOVE THE FLOWER FIELDS, HOW DOES THAT RELATE TO ANY? TODD I DON'T UNDERSTAND THE MECHANISM THERE.

I'M JUST FAMILIAR WITH HOTELS AND MOTELS, RIGHT? TRANSIENT OCCUPANCY TAXES WOULD STILL BE APPLIED TO TIMESHARE PROPERTIES.

MS. BHAT-PATEL, JUST A QUICK FOLLOW UP WITH REGARDS TO OPTIONS.

AND OBVIOUSLY, IF IT WOULD GO TO THE VOTERS, WE MAY NOT NECESSARILY HAVE THIS NUMBER TODAY, BUT CURIOUS IF WE NEEDED TO IF WE DECIDED THAT WE WANTED TO RUN MULTIPLE MEASURES, USUALLY APPROXIMATELY WHAT THAT COST LOOKS LIKE.

I KNOW IT DEPENDS YEAR PER YEAR, BUT I'M JUST CURIOUS IF THERE'S SOME BALLPARK WE COULD PROVIDE.

WE WE HAVE NOT ASKED THE REGISTRAR'S OFFICE OF WHAT WHAT A POTENTIAL MEASURE COULD LOOK LIKE IN 24.

BUT IF COUNCIL PROVIDES US DIRECTION, WE CAN HAVE THAT AS PART OF THE RESPONSES.

OKAY. THANKS. ANY OTHER QUESTIONS BEFORE CLOSING STATEMENTS? OKAY. WE'LL START WITH YOU, MISS LUNA.

JUST START DOING THE MATH, PLEASE, AND BRING US GOOD DATA.

I'D LIKE TO SEE THE TAX INCREASE COMPLETELY ERASED OFF OF THIS ALTOGETHER.

THANKS. MR. ACOSTA. THANK YOU FOR THE PRESENTATION AND ALL THE KIND OF THE BACKGROUND, THIS BIGGER PRESENTATION THAT THE CITY MANAGER MADE ABOUT KIND OF WHAT IT IS THAT WE'RE TRYING TO MAINTAIN OUR EXCELLENT QUALITY OF LIFE.

PEOPLE LOVE CARLSBAD.

THEY MOVE HERE, THEY VISIT HERE, THEY WORK HERE BECAUSE THEY LOVE OUR CITY.

AND I'M HERE BECAUSE I LOVE OUR CITY AND WE WANT TO MAKE THIS WORK.

WE'RE JUST CONCERNED ABOUT HOW TO AFFORD WHAT IT IS THAT WE HAVE HERE.

SO THIS IS THIS SLIDE IS IS SUCH A GREAT SLIDE.

I LOVE INFOGRAPHICS ANYWAY, BUT THIS SLIDE REALLY SHOWS THAT WE HAVE TOUGH CHOICES TO MAKE.

AND I FEEL LIKE THE AFFORDABILITY OF CARLSBAD HAS BEEN HAS BEEN A PROBLEM RECENTLY, HAS BEEN A CHALLENGE FOR YEARS, ACTUALLY, AND IT'S GETTING WORSE.

SO MY CONCERN IS FOR WORKING FAMILIES.

IT'S FOR OUR WORKFORCE.

IT'S COMPOUNDED BY THE HOUSING COSTS AND THE GAS PRICES AND THE UTILITY COSTS.

[02:25:05]

THEY'RE TALKING ABOUT WATER RATE INCREASES.

AND I'M JUST CONCERNED FOR REGULAR PEOPLE WHO LIVE IN CARLSBAD.

SO OF ALL THE OPTIONS THAT WE TALKED ABOUT HERE, THE ONE THAT I THAT IS MOST PALATABLE TO ME THAT I WOULD LIKE TO SEE MORE INFORMATION ON IS THE TOT, BECAUSE IT'S NOT FOR OUR CARLSBAD RESIDENTS. IT'S REALLY FOR PEOPLE WHO COME HERE FROM OUT OF TOWN TO ENJOY OUR OUR CITY AND OUR SERVICES.

AND I THINK WITHOUT HAVING HAD AN INCREASE IN THAT SINCE 1990, THAT IT'S ABOUT TIME THAT WE TAKE A CLOSER LOOK AT THAT.

AND I WOULD LIKE TO SEE THE OTHER INFORMATION AS WELL.

AS THE MAYOR MENTIONED, MAYBE UNINTENDED CONSEQUENCES.

JUST GET A REALLY GOOD COMPREHENSIVE PICTURE OF WHAT TOT INCREASES WOULD MEAN.

THANKS, MR. BHAT-PATEL.

YES. THANK YOU.

AND THANKS FOR THE PRESENTATION.

I KNOW WE HAD A PRETTY ROBUST DISCUSSION.

SO APPRECIATE ALL OF THE ON THE FLY ANSWERS THAT YOU ALL HAD TO PROVIDE AS WELL.

AND I TWO OF THE OPTIONS PREFER IF WE HAD TO LOOK AT MORE INFORMATION, THE TRANSIT OCCUPANCY TAX, OF COURSE, GIVEN SOME OF THE FEEDBACK THAT THE MAYOR MENTIONED, MAKING SURE WE'RE HAVING CONVERSATIONS WITH OUR HOTELIERS, I THINK, YOU KNOW, THE I PERSONALLY ALSO DON'T WANT NECESSARILY TO MOVE FORWARD WITH A SALES TAX.

BUT AT THE SAME TIME, IT WOULD BE INTERESTING TO JUST KNOW A LITTLE BIT MORE.

BUT IT SOUNDS LIKE WE AREN'T NECESSARILY LEANING THAT WAY WITH THE REST OF THE COUNCIL SO OPEN TO JUST MOVING FORWARD WITH JUST MORE INFORMATION ON THE TRANSIT OCCUPANCY TAX.

AND I THINK DEFINITELY NOT IN FAVOR OF INCORPORATING ANY SORT OF PARCEL TAX.

I DON'T THINK THAT'S SOMETHING THAT I'D EVEN WANT TO LOOK INTO.

BUT OTHER THAN THAT, THANK YOU AGAIN.

SO MY MOTION IS GOING TO BE THAT STAFF BRING BACK TO US ALL OF THE QUESTIONS THAT WE JUST ASKED ABOUT TRANSIENT OCCUPANCY, TAX INCREASE AND WHAT WOULD BE RECOMMENDED AND WHAT ARE THE UNINTENDED CONSEQUENCES FROM FROM THAT.

SO THAT'S THAT'S GOING TO BE MY MOTION.

SECOND, AND I'M ASSUMING IT WOULD INCLUDE LIKE WHAT THE COSTS WOULD BE FOR IF WE WERE TO PUT IT ON A BALLOT.

OKAY, GREAT.

OKAY. THANK YOU.

YES. PLEASE VOTE.

PASSES UNANIMOUSLY.

DO YOU HAVE ALL THE INFORMATION YOU NEED? I DO. THANK YOU. OKAY.

THANK YOU. AND THEN SOME, HUH? YEAH. OKAY.

[COUNCIL COMMENTARY AND REQUESTS FOR CONSIDERATION OF MATTERS]

WE'LL START WITH YOU, MISS BHAT-PATEL.

OH, WOW. YOU SWITCHED IT UP.

DIDN'T KEEP YOUR TIME.

DIDN'T GET TIME.

I KNOW. OKAY, SO GIVE ME ONE MOMENT HERE.

I KNOW, I KNOW.

LAST WEEK WAS MAINLY OFF, EXCEPT THAT I DID HAVE A LAUSANNE BOARD MEETING.

A BOARD MEETING? I AM NOW SANDAG REPRESENTATIVE TO THE LAUSANNE BOARD.

AND SO I WAS ATTENDING THAT.

I KNOW. I ALSO HAD THE OPPORTUNITY TO GO TO THE CARLSBAD 5000.

I'VE BEEN DOING THAT SINCE I WAS A KID, SO IT WAS REALLY GREAT TO BE OBVIOUSLY PART OF THE GROUP.

I USUALLY RUN IT, BUT DUE TO MY RECOVERY, I HAD I HAD THE PLEASURE OF WALKING WITH THE ENTIRE TEAM.

SO THAT WAS REALLY NICE.

OTHER THAN THAT, THIS WEEK WE DO HAVE A FIRE DEPARTMENT ANNUAL AWARDS.

I DO HAVE AN NCTD STRATEGIC WORKSHOP THAT I'LL ALSO BE ATTENDING FOR OUR EXECUTIVE COMMITTEE.

AND THEN OUR LEAGUE OF CALIFORNIA CITIES DIVISION MEETING WILL BE NEXT WEEK AS WELL AS LEGISLATIVE ADVOCACY DAY UP IN SACRAMENTO ON THE 12TH.

THANK YOU. MR. ACOSTA. THANK YOU.

BRIEFLY, JUST GOING THROUGH MY ASSIGNMENTS WITH THE CHAMBER OF COMMERCE, THINGS HAVE BEEN GOING WELL.

I'M WORKING ON A CANNED FOOD DRIVE TO HELP SUPPORT THEM FOR NORTH COUNTY FOOD BANK.

WE'VE GOT A LEGISLATIVE SUBCOMMITTEE.

OUR WORK WAS NOT AS MUCH IN A COMMITTEE MEETING, BUT ACTUALLY OUT THERE ADVOCATING IN THE WORLD.

AND COUNCIL MEMBER BURKHOLDER AND I ATTENDED THE NATIONAL LEAGUE OF CITIES ADVOCACY DAYS LAST WEEK IN WASHINGTON, D.C.

AND AMONGST THE THE FOLKS THAT WE MET WITH THAT WE MET WITH THE EPA, I MET WITH US SENATOR ALEX PADILLA, WITH REPRESENTATIVE MIKE LEVIN AND OTHERS. WE ALSO GOT TO CONNECT WITH CITIES FROM ALL OVER THE COUNTRY THAT HAVE SIMILAR PRIORITIES, KIND OF SYNC UP OUR MESSAGING TO ADVOCATE FOR CITIES AND TO TO LEARN HOW TO ACCESS SOME OF THE FUNDING THAT'S OUT THERE FOR LOCAL GOVERNMENTS.

AND THEN, AS MY COLLEAGUE MENTIONED, THE LEAGUE OF CALIFORNIA CITIES SAN DIEGO DIVISION MEETS ON MONDAY.

BUT THEN WE'VE GOT ADVOCACY DAYS FOR SACRAMENTO, FOR STATE, FOR STATE ADVOCACY NEXT WEEK AS WELL.

SO I'LL BE ATTENDING THOSE.

AND THEN FOR THE SAN DIEGO COUNTY WATER AUTHORITY, WE'VE GOT A MEETING THIS THURSDAY AFTERNOON WITH THE SENIOR LEADERSHIP OF THE BOARD FOR ALL THE NEW

[02:30:07]

WE'VE ALREADY BEEN TO ABOUT THREE MEETINGS, BUT IT'S THERE'S A LOT TO LEARN.

SO WE CONTINUE TO ESTABLISH THOSE GOOD RELATIONSHIPS.

AND IN FACT, I HAD A MEETING EARLIER TODAY WITH A WATER AUTHORITY MEMBER TO SYNC UP THOSE RELATIONSHIPS AND MAKE SURE THAT WE KNOW WHAT IT IS THAT WE'RE SUPPOSED TO DO IN EVERY MEETING. AND I THINK THAT'S IT FOR MY ASSIGNMENTS.

HAPPY EARTH MONTH, EVERYBODY.

MISS BURKHOLDER. YES, I DID ATTEND THE NATIONAL LEAGUE OF CITIES AND I WAS ABLE TO MEET WITH THE REPRESENTATIVE FROM FEINSTEIN'S OFFICE, AS WELL AS PADILLA'S OFFICE AND WITH CONGRESSMAN MIKE LEVIN IN PERSON.

AND I THINK IT WAS REALLY GOOD TO BE ABLE TO FOCUS ON WHAT WE NEED HERE IN CARLSBAD TO REALLY ADVOCATE FOR TRENCHING IN THE VILLAGE AND FOR THE COMPLETE STREETS AND LIGHTING AND SAFETY ISSUES THAT WE ARE STILL TRYING TO GET ACCOMPLISHED.

AND AS GOVERNMENT WORKS AT THE SPEED OF A SNAIL SOMETIMES.

AND THEN ON THE 31ST, I WAS ABLE TO PRESENT TO THE AVID KIDS THROUGH MY ROTARY, BUT IT WAS IN THE CAPACITY OF PART OF BEING WEARING THE CITY HAT AND PART WEARING A THERAPIST HAT.

SO IT WAS REALLY NICE.

THAT'S THE ADVANCEMENT VIA INDIVIDUAL DETERMINATION.

THAT'S WHAT AVID STANDS FOR.

AND I JUST WAS SO TAKEN ABACK BY HOW PREPARED AND SOUND AND READY THESE 11TH AND 12TH GRADERS WERE FOR THE DAY. AND THEN, OF COURSE, WE WERE ALL AT THE COMMUNITY GARDENS, I THINK, EXCEPT MAYBE EXCEPT COUNCIL MEMBER LUNA, WHICH IS A BEAUTIFUL EVENT CELEBRATING THE 40TH ANNIVERSARY. IF YOU HAVEN'T BEEN THERE, RIGHT BEHIND, RIGHT OVER THERE.

AND IT'S A WONDERFUL PLACE TO GO AND TAKE YOUR CHILDREN OR YOUR GRANDCHILDREN AND ENJOY THE GARDENS.

THEN THERE IS A STUDENT WAS A STUDENT FROM DHS NAMED AARON GUNNER, AND HIS FATHER ACTUALLY ASKED ME TO ATTEND THE CARLSBAD SPIRIT BENEFIT CONCERT IN HIS HONOR. EVERY YEAR THEY RAISE MONEY SCHOLARSHIPS FOR STUDENTS.

AND IT WAS A WONDERFUL EVENT AT THE AGUA HEDIONDA LAGOON ON SUNDAY.

I DID NOT WIN ANYTHING I BID ON, BUT I STILL ENJOYED MYSELF.

AND I ENCOURAGE YOU TO GO TO AARON GUNNER.ORG IF YOU WANT TO CHECK THAT OUT BECAUSE IT'S A REALLY TOUCHING STORY.

UM, THE CFD ANNUAL AWARDS.

I THINK WE'RE PROBABLY ALL GOING TO BE THERE TOMORROW.

AND HAPPY EASTER.

MISS LUNA. WE DID HAVE THE CARLSBAD 5000 THIS LAST WEEKEND.

JUST A COUPLE OF QUICK LITTLE BULLET POINTS ON IT.

IT'S THE 37TH YEAR WE'VE HAD THE RUN IN OUR DOWNTOWN AREA.

IT BROUGHT IN 7500 RUNNERS AND ANOTHER 5000 SPECTATORS.

THAT'S KIND OF IMPORTANT BECAUSE WE JUST GOT FINISHED TALKING ABOUT REVENUE TO THE CITY AND A LOT OF THOSE PEOPLE SPENT MONEY IN OUR HOTELS, RESTAURANTS AND A LOT OF THE OTHER RETAILERS HERE.

SO THANK YOU TO THE CARLSBAD 5000 FOR CHOOSING CARLSBAD.

CITY MANAGER YES, SIR.

[CITY MANAGER COMMENTS]

SO I DID WANT TO MENTION SOME UPCOMING ACTIVITIES FOR THE COMMUNITY AS WE CELEBRATE EARTH MONTH THIS SATURDAY, APRIL 8TH, WE'RE HOLDING OUR POPULAR SHRED EVENT WHERE RESIDENTS CAN BRING SENSITIVE DOCUMENTS FOR SHREDDING AND RECYCLING.

THE FOLLOWING WEEKEND, ON APRIL 8TH OR 15TH, WE WILL HOST OUR ANNUAL EARTH MONTH CELEBRATION EVENT AT PINE AVENUE PARK WITH FAMILY FRIENDLY ACTIVITIES, LIVE MUSIC AND OUR FIRST EVER COMPOST AND MULCH GIVEAWAY.

CARLSBAD RESIDENTS CAN PICK UP FREE COMPOST AND MULCH TO USE FOR THE GARDENS OR YARDS THIS SPRING.

AND THEN OUR ENVIRONMENTAL SUSTAINABILITY STAFF ARE HOSTING VIRTUAL LUNCH AND LEARN SESSIONS EACH DAY BETWEEN APRIL 17TH AND 20TH.

WE ENCOURAGE YOU TO SIGN UP ON TO LEARN MORE ABOUT THE ONGOING CITYWIDE SUSTAINABILITY INITIATIVES ON EARTH DAY ITSELF, WHICH IS APRIL 22ND.

WE ARE PARTNERING WITH I LOVE A CLEAN SAN DIEGO FOR THE ANNUAL CREEK TO BAY CLEANUP AND THE CARLSBAD COMMUNITY CAN SIGN UP AND PARTICIPATE AT A LOCATION THAT WORKS BEST FOR THEM. AND THEN AS WE'RE ROUNDING OUT EARTH MONTH AT OUR FINAL EVENT ON APRIL 29TH WITH A FREE IN-PERSON WORKSHOP ABOUT HOW TO MAKE SIMPLE SWAPS TO REDUCE YOUR SINGLE USE PLASTICS.

FOR MORE INFORMATION ABOUT THESE EVENTS AND LINKS TO REGISTER CAN BE FOUND ON THE CITY'S WEBSITE.

THE WEBSITE ADDRESS IS CARLSBAD, CA.GOV BACKSLASH EARTH MONTH CITY ATTORNEY.

NOTHING FOR ME. THANK YOU, MAYOR.

CITY CLERK. NOTHING.

THANK YOU. AND I HAVE A COMPUTER HAND RAISED FOR MS..

LUNA TO. NOW, THAT WAS A MISTAKE.

OKAY? NO, I DID THE CARLSBAD RUN ALSO.

16TH YEAR.

I USED TO RUN. I'M SORRY.

I WALK NOW.

[ANNOUNCEMENTS]

[02:35:05]

AND ON SATURDAY, APRIL 8TH AT 8:00 AM, CARLSBAD CHAMBER OF COMMERCE GREEN BUSINESS EXPO.

THAT WILL BE AT THE CARLSBAD CHAMBER OF COMMERCE, 5934 PRIESTLEY DRIVE IN CARLSBAD.

WE'RE ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.