May 07, 2024 City Council Meeting

[00:00:03]

MEETING TO ORDER, PLEASE TAKE ROLL.

[CALL TO ORDER]

COUNCIL MEMBER BURKHOLDER, PRESENT.

COUNCIL MEMBER ACOSTA, I'M HERE.

MAYOR PRO TEM BHAT-PATEL, HERE.

MAYOR BLACKBURN, PRESENT.

ALL FIVE COUNCIL MEMBERS ARE PRESENT.

I HAVE TO MAKE THE FOLLOWING ANNOUNCEMENT.

[ANNOUNCEMENT OF CONCURRENT MEETINGS]

READY? BEGIN. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

NEXT IS APPROVAL OF THE MINUTES, THE MINUTES OF THE REGULAR MEETING HELD MARCH 19TH OF 24.

[APPROVAL OF MINUTES]

SECOND. PLEASE VOTE.

PASSES UNANIMOUSLY.

NEXT IS PRESENTATIONS.

[PRESENTATIONS]

YES. THANK YOU.

AND TODAY WE'LL BE HONORING ASIAN AMERICAN AND PACIFIC ISLANDER HERITAGE MONTH.

WE ARE CELEBRATING AAPI HERITAGE MONTH, AND IT'S TIME TO RECOGNIZE THE CONTRIBUTIONS THAT THE AAPI COMMUNITY HAS MADE TO OUR COUNTRY THROUGHOUT ITS HISTORY, FROM THE EARLIEST IMMIGRANTS WHO HELPED BUILD OUR RAILROADS AND WORKED IN OUR FIELDS, TO THE COUNTLESS SCIENTISTS, ENTREPRENEURS, AND ARTISTS WHO ENRICH OUR NATION TODAY, AAPIS HAVE PLAYED A VITAL ROLE IN SHAPING AMERICA'S HISTORY.

AND AS WE BEGIN THIS MONTH, I WOULD LIKE TO TAKE THIS MOMENT TO ACKNOWLEDGE NOT ONLY THE VIBRANT CULTURES, LANGUAGES AND TRADITIONS OF THE COMMUNITY, BUT ALSO WHAT WE HAVE TO OFFER AS A COMMUNITY.

AND SO THIS MONTH IS A CHANCE FOR US TO LEARN MORE ABOUT THE HERITAGE OF OUR AAPI NEIGHBORS AND COLLEAGUES, AND TO CELEBRATE THE DIVERSITY THAT MAKES OUR COMMUNITY STRONG.

AND WITH THAT, I'LL READ THE PROCLAMATION AND I KNOW PAT DOWNEY WHO'S A PROGRAM MANAGER, WILL BE ACCEPTING THIS.

SO I'LL GO AHEAD AND READ THAT PROCLAMATION.

AND, PAT, IF YOU'D LIKE TO COME TO THE PODIUM THEN YOU CAN SAY A FEW WORDS AFTER THAT.

SO WHEREAS FOR OVER A CENTURY, ASIAN AMERICANS, NATIVE HAWAIIANS AND PACIFIC ISLANDER PEOPLE HAVE CONTRIBUTED TO ALL AREAS OF LIFE, INCLUDING GOVERNMENT, BUSINESS, ARTS AND SCIENCES, MEDICINE, EDUCATION, LAW ENFORCEMENT AND THE MILITARY.

AND WHEREAS, ASIAN AMERICAN AND PACIFIC ISLANDER HERITAGE RECOGNITION IN THE UNITED STATES BEGAN IN 1978 AND WAS MADE INTO A MONTH LONG AWARENESS EVENT IN 1992 TO HONOR OUR DYNAMIC IMMIGRANT AND NATIVE COMMUNITIES.

AND WHEREAS ASIAN AMERICAN AND PACIFIC ISLANDER CULTURES HAVE SHARED THEIR STORIES AND TRADITIONS WHILE REPRESENTING THEIR COMMUNITIES THROUGH PUBLIC SERVICE AND ADVOCACY.

AND WHEREAS, THE CITY OF CARLSBAD IS COMMITTED TO CELEBRATING THE IMPORTANCE OF INCLUSION AND TO COMMEMORATE THE VITAL CONTRIBUTIONS, SACRIFICES, AND ACHIEVEMENTS THAT ASIAN AMERICANS, NATIVE HAWAIIANS AND PACIFIC ISLANDER PEOPLE HAVE MADE.

THEREFORE, I, MAYOR PRO TEM PRIYA BHAT-PATEL, ON BEHALF OF THE MAYOR AND CITY COUNCIL, DO HEREBY PROCLAIM THE MONTH OF MAY 2024 AS ASIAN AMERICAN AND PACIFIC ISLANDER HERITAGE MONTH IN THE CITY OF CARLSBAD.

AND WITH THAT, I WILL PASS IT OFF TO PAT DOWNEY.

THANK YOU MAYOR, MAYOR PRO TEM BHAT-PATEL AND COUNCIL MEMBERS GOOD EVENING TO ALL.

ASIAN AMERICAN PACIFIC ISLANDER HERITAGE MONTH IS A WONDERFUL OPPORTUNITY TO SHARE THE CULTURE OF THOSE OF US WHO ARE FORTUNATE ENOUGH TO BE PART OF A COMMUNITY THAT CELEBRATES TRADITION AND STORIES FROM THE CONTINENT OF ASIA AND THE PACIFIC ISLANDS.

I AM OF PHILIPPINE HERITAGE, I MIGRATED TO THE UNITED STATES IN 1971 AND GREW UP IN SAN FRANCISCO DURING THE ERA OF BELL BOTTOMS, HIPPIES, AND HARIKRISHNA.

I THINK OF MY PARENTS WHO WERE EDUCATORS AND WHO SAVED THEIR TEACHERS SALARIES TO BE ABLE TO START A NEW LIFE IN THE UNITED STATES.

I REMEMBER SADNESS IN MY MOTHER'S FACE WHEN MY FATHER LEFT FOR SAN FRANCISCO IN 1969, TWO YEARS PRIOR TO JOINING HIM IN 1971.

IT WAS A SACRIFICE MADE AS HUSBAND AND WIFE IN LEAVING THEIR HOMELAND AND FAMILIES BEHIND FOR THE DREAM OF NEW OPPORTUNITIES AND A BRIGHTER FUTURE FOR THEIR CHILDREN.

THEY INSTILLED IN THEIR CHILDREN THE IMPORTANCE OF RESPECT FOR ELDERS, EDUCATION, HARD WORK, WISDOM, RESPONSIBILITY, ACCOUNTABILITY AND TRUST, VALUES THAT I PROUDLY PASS ON TO MY OWN FAMILY.

MY GRANDFATHER WAS A PURPLE HEART RECIPIENT WHO LOST HIS LEG AT THE END OF THE BATAAN MARCH IN WORLD WAR TWO.

HE CAME TO THE UNITED STATES IN THE 1960S AND MARCHED ALONGSIDE CESAR CHAVEZ IN THE DELANO FARMLANDS OF DELANO, CALIFORNIA.

I NEVER MET MY GRANDFATHER, BUT WHAT A COURAGEOUS MAN HE MUST HAVE BEEN TO STAND UP FOR WHAT WAS RIGHT, EVEN IF IT WAS ONLY ON ONE LEG.

BRAVERY, SACRIFICE, GRATITUDE FOR OPPORTUNITIES AND LOVE OF LIFE, FAMILY AND COMMUNITY, T HIS IS WHAT MAKES UP THE ASIAN AMERICAN PACIFIC ISLANDER COMMUNITY WHO HAVE THEIR OWN STORIES TO TELL.

[00:05:01]

WITH HONOR I ACCEPT THIS PROCLAMATION ON BEHALF OF THOSE PAST AND PRESENT WHO EMBRACE, PRESERVE, AND SHARE THE CULTURE AND TRADITIONS OF OUR HERITAGE.

[APPLAUSE] WOULD YOU PLEASE JOIN US UP FRONT FOR A PHOTO? YES. RIGHT HERE.

CITY ATTORNEY, WILL YOU PLEASE REPORT OUT ON CLOSED SESSION?

[PUBLIC REPORT OF ANY ACTION TAKEN IN CLOSED SESSION]

ONCE THE LITIGATION HAS FORMALLY COMMENCED INFORMATION ABOUT THE LITIGATION, INCLUDING THE DEFENDANTS AND OTHER PARTICULARS, WILL BE DISCLOSED UPON INQUIRY, UNLESS THE DISCLOSURE WOULD JEOPARDIZE THE CITY'S ABILITY TO SERVE AN OPPOSING PARTY OR JEOPARDIZE THE CITY'S ABILITY TO CONCLUDE ANY EXISTING SETTLEMENT NEGOTIATIONS TO ITS ADVANTAGE.

THANK YOU. THANK YOU.

NEXT IS PUBLIC COMMENT I HAVE TO READ THE FOLLOWING.

[PUBLIC COMMENT]

MEMBERS OF THE PUBLIC MAY ALSO COMMENT ON AGENDA ITEMS, AS LONG AS THE COMMENTS RELATE TO THE QUESTION OR MATTER UNDER CONSIDERATION.

INFORMATION ON HOW TO PARTICIPATE IN THE MEETING IS ON THE FRONT PAGE OF THIS AGENDA.

THE CITY COUNCIL WILL RECEIVE NON-AGENDA PUBLIC COMMENTS FOR A TOTAL OF 15 MINUTES AT THE BEGINNING OF THE MEETING.

CITY COUNCIL RECEIVED ANY ADDITIONAL NON-AGENDA PUBLIC COMMENTS AT THE END OF THE MEETING.

IN CONFORMANCE WITH THE BROWN ACT NO ACTION MAY OCCUR ON NON-AGENDA ITEMS. WHEN MAKING YOUR COMMENTS, PLEASE TREAT OTHERS WITH COURTESY, CIVILITY AND RESPECT.

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

WHEN IT'S YOUR TURN TO SPEAK, THE CLERK WILL CALL YOUR NAME.

PLEASE COME UP TO THE PODIUM.

YOU HAVE THREE MINUTES AT THE 2.5 MINUTE MARK THE LIGHT WILL TURN YELLOW, LETTING YOU KNOW THAT YOU'RE DOWN TO 30 SECONDS.

I'VE ASKED THE CLERK TO TURN OFF THE MICROPHONE AT THE CONCLUSION OF THREE MINUTES THAT WAY EVERYBODY GETS EXACTLY THE SAME AMOUNT OF TIME TO SPEAK.

PLEASE CALL THE FIRST SPEAKER, JEFF HUGHES, FOLLOWED BY TIM MORGAN.

WHILE ALL THESE YOUNG LADIES TO START THEIR WAY INTO THE ROOM HERE.

THANK YOU, COUNCIL MEMBERS, FOR RECOGNIZING THESE WONDERFUL YOUNG WOMEN ON THEIR ACCOMPLISHMENTS DURING THIS SEASON AS THEY MAKE THEIR WAY IN Y OU KNOW, WE WILL HAVE OUR 2012 GIRLS, OUR 2011 GIRLS, AND OUR 2009 GIRLS FROM CITY [INAUDIBLE] IN CARLSBAD.

THESE GIRLS HAVE PUT IN COUNTLESS TIME, ENERGY, SACRIFICE AND COMMITMENT TO ACHIEVE SOME WONDERFUL ACCOMPLISHMENTS.

WITH THE SUPPORT OF THE CLUB, THE DIRECTORS, THEIR FAMILIES AND COACHING STAFF, THESE YOUNG LADIES HAVE REPRESENTED THEMSELVES, THE CLUB AND THE CITY OF CARLSBAD IN THE HIGHEST REGARD.

THESE THESE GIRLS PARTICIPATE IN THE GIRLS ACADEMY LEAGUE, WHICH IS ONE OF THE ONLY PLATFORMS THAT IS FOCUSED ON EMPOWERING YOUNG WOMEN TO PROVIDE AN OPPORTUNITY TO ENGAGE THESE YOUNG PLAYERS TO EXCEL BOTH ON AND OFF THE FIELD.

[00:10:06]

WHAT WE HAVE HERE TODAY IS THE U12, WHICH IS OUR 2012 GIRLS, CAL SOUTH AND CAL CUP CHAMPIONS, WHICH IS THE WHOLE STATE OF CALIFORNIA.

YOU HAVE OUR 2011, WHICH IS U13 CHAMPIONS CUP, WHICH IS A NATIONAL COMPETITION AMONGST THE TOP CLUBS IN THE GIRLS ACADEMY LEAGUE.

AND YOU HAVE OUR U15 2009 GIRLS THAT WON THE CHAMPIONS CUP AS WELL.

AND SO WHAT YOU HAVE HERE IS A REPRESENTATION OF THIS CLUB AND EVERYTHING THAT'S GOING ON HERE.

IN THIS ROOM YOU ALSO HAVE ALL THE SUPPORT OF THE FAMILIES, THE DIRECTORS, THE BOARD AND OUR COACHING STAFF, I'D LIKE TO RECOGNIZE THEM AS WELL, FOR ALL THE TIME AND HARD WORK THAT GOES INTO THIS PROCESS.

THESE GIRLS WOULDN'T BE HERE WITHOUT THE SUPPORT OF EVERYONE IN THIS ROOM.

AND, YOU KNOW, THEY'VE DONE A VERY, VERY, VERY WONDERFUL JOB.

SO THANK YOU AGAIN FOR THE OPPORTUNITY TO RECOGNIZE THESE WONDERFUL YOUNG WOMEN.

THEY WOULD LIKE TO TAKE A PICTURE.

THEY HAVE THEIR THEY'VE BEEN GIVEN THEIR CERTIFICATE OF RECOGNITION.

AND AGAIN, THANK YOU AGAIN FOR RECOGNIZING THESE WONDERFUL YOUNG WOMEN.

SIR HOW MANY COACHES DO YOU HAVE HERE PRESENT? WE HAVE TWO COACHES.

THREE COACHES HERE.

PRESENT. OKAY. I'M GOING TO ASK YOU TO ARRANGE THE GIRLS UP FRONT FOR THE PHOTO AND THEN THE COACHES TO JOIN US AT THE TOP LEVEL FOR A GROUP PICTURE, PLEASE.

ABSOLUTELY. THAT WOULD BE WONDERFUL.

SHOULD THEY GO THROUGH HERE? RIGHT ACROSS.

WONDERFUL. LET'S DO IT.

RIGHT IN HERE. AND THEN THE COACHES WILL COME UP TOP.

ERIN COULD PROBABLY STAND COACH, COACH, COACH, WILL YOU HELP ORGANIZE THEM AND MAKE THEM ALL IN? YOU'LL NOTICE I'M OUTNUMBERED, SO I HAD YOUR COACH DO IT.

CONGRATULATIONS [APPLAUSE].

THANK YOU SO MUCH.

THAT'S GOING TO GO IN MY OFFICE, RIGHT? CONGRATULATIONS.

[00:15:10]

THAT WAS MY OPENING LINE.

THERE'S NO WAY I CAN FOLLOW THAT.

BUT THAT WAS AWESOME.

SO A GREAT JOB ON THE PICTURE TOO.

SO. SO I LIKE TO START OFF WITH THE NUMBER ZERO.

ZERO LACROSSE BALLS HAVE GONE INTO MY NEIGHBOR'S YARD THIS SEASON.

ZERO LACROSSE BALLS HAVE GONE INTO MY YARD THIS SEASON.

ZERO COMMUNITY INPUT FROM THE CARLSBAD SCHOOL DISTRICT ABOUT THE DEEP DETAILS OF THEIR PLAN FOR THEIR NET.

ZERO SUPPORT FOR THE CURRENT PLAN, WHICH FROM THE FROM THE NEIGHBORS WHICH MIGHT BE MIGHT BE ARRIVING ON YOUR DESK SOON, WHICH IS THE REASON I'M HERE TODAY.

YOU GUYS KNOW ME.

MY NAME IS TIM MORGAN, I LIVE ON THE CORNER OF VALLEY AND TAMARACK.

SPEAKING HONESTLY, IT WAS REALLY HARD FOR ME TO BE HERE TONIGHT.

I'M KNEE DEEP INTO VOLUNTEERING WITH MY SPORTS, WITH MY SON'S SPORTS ACTIVITIES.

I GOT ONE SON, ONE AND A SHORT WINDOW TO EXPERIENCE HIS INNOCENT LOVE OF SPORTS.

BUT TONIGHT IS IMPORTANT.

I COME HERE TO PREP YOU ONLY ON WHAT MIGHT BE COMING ACROSS YOUR DESK SHORTLY.

I DON'T WANT TO KEEP SOUNDING LIKE A COMPLAINER, BUT PUT YOURSELF IN IN MY SHOES.

YOU MOVE INTO A WONDERFUL NEIGHBORHOOD WITH WONDERFUL PEOPLE, WONDERFUL VIEWS OF THE NATURAL LANDSCAPE.

THEN ALL OF A SUDDENLY WITHOUT NOTICE AND WITHOUT COASTAL COMMISSION APPROVAL THE SCHOOL DISTRICT ONCE PUT UP 14 POLES OVER 20FT HIGH, BLOCKING OUR NEIGHBOR'S NATURAL LANDSCAPE WITHOUT ANYONE'S KNOWLEDGE, YOU WOULD ALSO BE HERE.

LAST YEAR, WE HAD A SPEEDING ISSUE ON TAMARACK.

WE TOOK SCOTT CHADWICK'S VISION AND WORKED TOGETHER AS ONE CARLSBAD TO COME UP WITH A SOLUTION BY IMPLEMENTING SPEED BUMPS ON TAMARACK. THIS WAS AND IS A WONDERFUL SOLUTION.

WE DID IT AS A COMMUNITY.

WE DID IT AS ONE CARLSBAD SCOTT.

THIS IS WHAT WE'RE ASKING TO WORK TOGETHER AGAIN AS ONE CARLSBAD AND COME UP WITH A SOLUTION.

SO IF OR WHEN THE PROPOSED PLAN COMES ACROSS THE DESK, YOUR DESK FOR A VOTE, WE, THE RESIDENTS OF VALLEY AND TAMARACK, ASKED YOU TO RECONSIDER WORK WITH THE NEIGHBORS AS ONE CARLSBAD FOR AN ALTERNATIVE SOLUTION.

THANK YOU. SIR AT THE BACK OF THE ROOM IS JEFF MURPHY WOULD YOU TALK TO HIM TO EXCHANGE SOME IDEAS? THANK YOU, THANK YOU.

THERE ARE NO ADDITIONAL SPEAKERS.

THANK YOU. NEXT IS CONSENT CALENDAR ITEMS NUMBER ONE THROUGH SIX.

[CONSENT CALENDAR]

MOTION, PLEASE.

MOVE CONSENT ITEMS ONE THROUGH SIX.

SECOND. PLEASE VOTE.

CONSENT CALENDAR ITEMS ONE THROUGH SIX PASS UNANIMOUSLY.

NEXT IS ITEM SEVEN, A PUBLIC HEARING.

[7. FISCAL YEAR 2024-25 ANNUAL ACTION PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM]

GREAT. THANK YOU SO MUCH. ITEM SEVEN IS THE FISCAL YEAR 24-25 ANNUAL ACTION PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM.

MAKING OUR PRESENTATION TODAY IS OUR SENIOR PROGRAM MANAGER, NICOLE PIANO JONES.

THANK YOU AND GOOD EVENING.

MY NAME IS NICOLE PIANO JONES, I'M A PROGRAM MANAGER WITH THE HOUSING AND HOMELESS SERVICES DEPARTMENT HERE TONIGHT TO PRESENT OUR PUBLIC HEARING FOR OUR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM.

SO JUST WANTED TO GO OVER THE PRESENTATION.

WE'LL DO A BRIEF OVERVIEW OF THE CDBG PROGRAM, HOW IT'S KNOWN AS SHORT COMMUNITY DEVELOPMENT BLOCK GRANT.

THAT IT IS A PUBLIC HEARING AS REQUIRED UNDER THE REGULATIONS AND THE PURPOSE OF THE ANNUAL ACTION PLAN AND THE TIMING OF OUR OF OUR PLAN.

SO JUST AN OVERVIEW THE THE CITY OF CARLSBAD IS AN ENTITLEMENT GRANTEE, WHICH MEANS THAT WE RECEIVE FUNDING DIRECTLY FROM THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

THE PROGRAM HAS BEEN AROUND SINCE 1974, AND THE PURPOSE IS TO ASSIST LOCAL COMMUNITIES, PROVIDE DECENT HOUSING, SUITABLE LIVING ENVIRONMENTS, AND EXPAND ECONOMIC OPPORTUNITIES FOR LOWER INCOME RESIDENTS.

THE GRANT FUNDS ARE APPROVED EVERY YEAR BY CONGRESS AND THEN DISTRIBUTED TO LOCAL COMMUNITIES AS BLOCK GRANTS.

THERE ARE A NUMBER OF DIFFERENT REQUIREMENTS AND CONDITIONS ON THE GRANT, INCLUDING DEVELOPMENT OF PLANS AND DOCUMENTS, FUNDING LIMITATIONS FOR PUBLIC SERVICES AND ADMINISTRATION, AND ALSO REQUIREMENT FOR PUBLIC PARTICIPATION IN THE FUNDING PROCESS.

SO HERE IS A TIMELINE OF HOW WE ARRIVED AT OUR PUBLIC HEARING TONIGHT, BACK IN OCTOBER OF 2023, THE CITY COUNCIL APPROVED THE FUNDING PLAN

[00:20:09]

SINCE THAT TIME, WE RECEIVED A TOTAL OF SIX APPLICATIONS FOR FOR PUBLIC SERVICES, ONE FOR FAIR HOUSING SERVICES AND ONE FOR A FACILITY IMPROVEMENT PROJECT.

STAFF PREPARED RECOMMENDATIONS FOR CONSIDERATION BY THE HOUSING COMMISSION IN MARCH OF 2024, WHICH WERE APPROVED.

THEN THOSE WERE RECOMMENDATIONS WERE INCLUDED IN THE FISCAL YEAR 2024-2025 ANNUAL ACTION PLAN AND MADE AVAILABLE FOR A 30 DAY PUBLIC REVIEW AND COMMENT PERIOD.

WHICH CONCLUDES WITH THE PUBLIC HEARING TONIGHT.

WE HAVE NOT RECEIVED ANY COMMENTS TO DATE ON THE DRAFT ACTION PLAN.

SO GOING OVER THE BREAKDOWN OF OUR ANTICIPATED FUNDING AND WHAT'S IN THAT ANNUAL ACTION PLAN.

WE WE DO ANTICIPATE AN ANNUAL AWARD OF $518,215.

IT IS STILL ESTIMATED AT THIS TIME, SINCE WE HAVEN'T RECEIVED OUR FINAL AWARD YET FROM THE FEDERAL GOVERNMENT.

OF THAT, WE HAVE A 15% CAP FOR PUBLIC SERVICES, SO WE HAVE ABOUT $77,000 IN THAT CATEGORY.

AND THEN A 20% CAP FOR ADMINISTRATION AND FAIR HOUSING.

A LITTLE OVER $103,000 IN THAT CATEGORY.

AND FOR FACILITIES AND HOUSING PROJECTS, WE HAVE $336,840.

SO MOVING ON TO THE PUBLIC SERVICES, WE DID RECEIVE FOUR APPLICATIONS TOTALING $194,386, WHICH DID EXCEED THE AVAILABLE AMOUNT BY QUITE A LOT, SO WE HAD TO MAKE SOME TOUGH DECISIONS.

HOWEVER STAFF USED A NUMBER OF CRITERIA TO MAKE THESE RECOMMENDATIONS, THE FIRST BEING SERVICES THAT WERE IDENTIFIED IN THE HOMELESSNESS ACTION PLAN.

HAVING A HIGHER PRIORITY AS WELL AS SERVICES IN THAT HOMELESSNESS FUNDING PLAN THAT ARE BEING CONSIDERED FOR ALTERNATIVE FUNDING SOURCES.

SO IF YOU SEE THE ASTERISK THERE AT THE BOTTOM.

THERE'S A $0 FOR CDBG HOWEVER, THOSE ORGANIZATIONS ARE RECEIVING GENERAL FUNDS AS APPROVED BY THE HOMELESSNESS ACTION FUNDING PLAN. SO WITH THAT, WE DID RECOMMEND THAT COMMUNITY RESOURCE CENTER AND INTERFAITH COMMUNITY SERVICES BE FUNDED WITH CDBG FOR THE FISCAL YEAR. AND THEN IF WE DO RECEIVE PROGRAM INCOME DURING THE YEAR, WE WOULD FUND THE ORGANIZATIONS NOT RECEIVING CDBG.

AND IN THE FAIR HOUSING AND ADMINISTRATION CATEGORY WE DID RECEIVE ONE APPLICATION FOR FAIR HOUSING SERVICES, THAT BEING LEGAL AID SOCIETY OF SAN DIEGO.

THEY ARE OUR CURRENT PROVIDER AND STAFF DID RECOMMEND THAT THEY ARE WILL BE CONTINUED TO BE FUNDED AT THEIR REQUESTED AMOUNT OF $25,000, WITH THE REMAINING AMOUNT AVAILABLE FOR PROGRAM ADMINISTRATION.

IN THE FACILITIES AND HOUSING CATEGORY WE RECEIVED ONE OUTSIDE APPLICATION FOR A FACILITY IMPROVEMENT PROJECT, AND THEN THE RECOMMENDATION WOULD BE THE REMAINING AMOUNT, $236,840, TO OUR AFFORDABLE HOUSING FUND FOR ACQUISITION AND REHABILITATION ACTIVITIES.

SO I WANTED TO MAKE NOTE OF A COUPLE OF THINGS THAT WERE IMPORTANT TO DRAW YOUR ATTENTION TO.

ONE, THE PLAN FOR THE PROGRAM INCOME AS I MENTIONED, IF THE CITY DOES RECEIVE PROGRAM INCOME FROM DIFFERENT ACTIVITIES, WE WANT TO HAVE A PLAN UP FRONT AT THE BEGINNING OF THE YEAR AS OPPOSED TO WAITING UNTIL WE RECEIVE IT.

SO WE'RE PROACTIVE IN GETTING THOSE FUNDS OUT THERE AS QUICKLY AS POSSIBLE.

SO WE WANT TO ALLOCATE UP TO 15% FOR THE PUBLIC SERVICES, UP TO 20% FOR FAIR HOUSING AND ADMIN, AND THEN THE REMAINING TO AFFORDABLE HOUSING. AND AS I ALSO MENTIONED, WE DON'T HAVE OUR OFFICIAL GRANT AWARD YET.

SO WE DO HAVE TO JUST MAKE A CONTINGENCY THAT WHATEVER THAT AMOUNT ENDS UP BEING, WE WILL ADJUST ACCORDINGLY TO THE CAPS.

AND WITH THAT, STAFF RECOMMENDS THAT THE CITY COUNCIL ADOPT A RESOLUTION APPROVING THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FISCAL YEAR 20 2425 ANNUAL ACTION PLAN FOR SUBMISSION TO THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

CONCLUDES MY PRESENTATION HAPPY TO ANSWER ANY QUESTIONS.

THIS IS A PUBLIC HEARING, SO I'M OPENING THE PUBLIC HEARING.

DO WE HAVE ANY SPEAKERS? YES, MAYOR, WE RECEIVED THIS SPEAKER NOTICE, THOUGH, AFTER THE PRESENTATION BEGAN.

[00:25:02]

DO WE HAVE ANY WHO SUBMITTED PRIOR TO THE BEGINNING? NO, MAYOR. OKAY, THEN I'M CLOSING THE PUBLIC HEARING.

QUESTIONS OF COUNCIL? MISS LUNA. I JUST HAVE A VERY QUICK ONE, THIS ONE BEFORE THE HOUSING COMMISSION AND DID THEY HAVE ANYTHING WE SHOULD BE MADE AWARE OF ANY COMMENTS? YES. THANK YOU FOR THAT QUESTION.

WE DID TAKE THIS TO THE HOUSING COMMISSION IN MARCH.

THEY DID HAVE A NUMBER OF QUESTIONS FOR THE APPLICANTS.

EACH APPLICANT DID A PRESENTATION AND THEY HAD A Q&A SESSION.

THERE WEREN'T ANY SPECIFIC RECOMMENDATIONS AS FAR AS WHAT WE WERE MOVING FORWARD WITH AS THE FUNDING, BUT THEY DID WANT TO HAVE STAFF RETURN WITH OUR ACCOMPLISHMENT INFORMATION AT SOME POINT DURING THE YEAR, SO WE'LL BE DOING THAT.

ANY OTHER QUESTIONS FROM COUNCIL? COMMENTS FROM COUNCIL.

MOTION FROM COUNCIL.

YES. MOVE STAFF RECOMMENDATION.

SECOND. PLEASE VOTE.

PASSES UNANIMOUSLY.

THANK YOU VERY MUCH.

ITEM NUMBER EIGHT CITY MANAGER, PLEASE.

[8. CITY FLEET UPDATE]

ITEM NUMBER EIGHT IS THE CITY FLEET UPDATE.

AND GIVING OUR PRESENTATION TODAY IS OUR 2024 PROFESSIONAL FLEET MANAGER OF THE YEAR BRADLEY NORTHROP, BRADLEY.

THERE YOU GO. THANK YOU, MR. CITY MANAGER. GOOD EVENING, HONORABLE MAYOR AND COUNCIL MEMBERS.

MY NAME IS BRADLEY NORTHUP I AM THE PUBLIC WORKS SUPERINTENDENT FOR OUR FLEET SERVICES DIVISION.

OH. SORRY ABOUT THAT.

TODAY, WE'RE ASKING CITY COUNCIL TO RECEIVE A REPORT ON THE STATE OF THE CITY'S FLEET.

I'LL BE PROVIDING YOU WITH A BRIEF OVERVIEW OF OUR FLEET.

I'LL TOUCH ON SOME OF OUR MOST RECENT ECONOMIC AND OPERATIONAL IMPACTS.

I'LL PROVIDE SOME INSIGHT INTO FLEET PROJECTS THAT WE HAVE ONGOING, AND I'LL PROVIDE A BRIEF SUMMARY OF A REPORT FROM MATRIX CONSULTANTS REGARDING AN OPTIONS ANALYSIS FOR POTENTIAL COST SAVINGS AND STRATEGIES.

AND LASTLY, I'LL DISCUSS SOME OF FLEET'S NEXT STEPS AND INITIATIVES FOR IMPLEMENTATION IN THE NEAR FUTURE.

OUR FLEET IS CURRENTLY COMPRISED OF APPROXIMATELY 490 VEHICLES AND EQUIPMENT, WITH AN AVERAGE AGE OF SEVEN YEARS.

LAST FISCAL YEAR, OUR CITY VEHICLES TRAVELED A TOTAL OF 2.1 MILLION MILES AND CONSUMED ABOUT 264,000 GALLONS OF FUEL.

EMISSIONS FROM THE CITY FLEET ARE ESTIMATED AT 2,390 METRIC TONS OF GREENHOUSE GASES.

SOMETHING IMPORTANT TO NOTE THAT I'D LIKE TO POINT OUT IS THAT UNDERSTANDING OUR FLEET BY QUANTITY ALONE ISN'T SUFFICIENT TO DESCRIBE THE RELATIVE SIZE OF OUR FLEET TO OTHER FLEETS. SOME FIRE TRUCKS AND POLICE VEHICLES, FOR EXAMPLE, REQUIRE MORE RESOURCES AND LABOR THAN A STANDARD PASSENGER VEHICLE.

TO HELP PUT THIS INTO PERSPECTIVE, FLEETS USE A VEHICLE EQUIVALENCY ANALYSIS OR A VEU TO DISCERN THE SIZE OF OUR FLEET IN RELATION TO STANDARD PASSENGER FLEETS, AND IN PERFORMING THIS ANALYSIS, OUR FLEET IS EQUIVALENT TO A STANDARD PASSENGER FLEET OF OVER 1,000 VEHICLES.

LIKE ANY OTHER BUSINESS, FLEET UTILIZES BEST PRACTICES TO EFFECTIVELY AND EFFICIENTLY MANAGE OUR OPERATIONS.

MOST NOTABLY, WE HAVE ESTABLISHED, FUNDED AND WELL MANAGED INTERNAL SERVICE FUNDS TO SUPPORT THE MAINTENANCE, REPAIR, AND REPLACEMENT OF CITY VEHICLES.

THESE INTERNAL SERVICE FUNDS ARE UPDATED ANNUALLY AND HAVE AND HAVE SUCCESSFULLY SUPPORTED CITY FLEET OPERATIONS FOR OVER 40 YEARS.

WE HAVE ESSENTIAL FLEET MANAGEMENT MECHANISMS AND PROCESSES IN PLACE WITH ADMINISTRATIVE ORDER THREE THAT ESTABLISHES THE POLICIES OF OUR FLEET MANAGEMENT PROGRAM AND ENSURES THE EFFICIENT FUND MANAGEMENT AND OPTIMIZED OPERATIONS.

OUR MAINTENANCE RENTAL RATE SYSTEM USES A THREE YEAR AVERAGE COST FOR VEHICLES VEHICLE MAINTENANCE, REPAIRS AND FUELING, ENSURING THE FUND IS PROPERLY FUNDED EACH YEAR TO KEEP OUR VEHICLES OPERATIONAL AND SAFE.

WITH REGARD TO PROFESSIONAL ADVOCACY AND COLLABORATION, BEST PRACTICES INCLUDE THE SHARING OF INFORMATION AND LESSONS LEARNED ACROSS THE FLEET INDUSTRY.

TO FACILITATE THIS, I'M INVOLVED WITH MULTIPLE PROFESSIONAL ADVOCACY AND ENVIRONMENTAL ORGANIZATIONS THAT HELP US AS A FLEET STAY AWARE OF AND INVOLVED IN NEW FLEET BEST PRACTICES, STRATEGIES, AND NEW TECHNOLOGICAL ADVANCEMENTS.

LASTLY, FLEET CONTINUES CONTINUOUS PROCESS REVIEWS BY OUR STAFF AND BY THIRD PARTY CONSULTANTS TO ENSURE WE'RE KEEPING OUR FLEET ACCOUNTABLE, SEEKING IMPROVEMENTS FOR OUR EXISTING PROCESSES, AND RESEARCHING SOLUTIONS TO OPERATIONAL AND ECONOMICAL CHALLENGES.

THE ECONOMICAL IMPACTS THAT OUR FLEET HAVE BEEN FACED WITH OVER THE PAST FOUR YEARS ARE UNPRECEDENTED IN OUR INDUSTRY, AND OUR CITY, LIKE MANY OTHERS, HAVE HAD TO MAKE DIFFICULT DECISIONS TO ENSURE THAT THE LEAST POSSIBLE IMPACT TO OUR OPERATIONS.

[00:30:03]

OUR GOVERNMENT PRICING DISCOUNTS ON THE PURCHASE OF NEW VEHICLES ARE NEARLY GONE.

WE ARE STARTING TO SEE SOME LIMITED SUCCESS ON LESS IN-DEMAND VEHICLES, BUT CONVENTIONAL GOVERNMENT PRICING STRUCTURES ARE STILL REELING FROM A MANUFACTURING SHORTAGE.

THIS PRICING AND PRODUCTION SHORTAGE IS MOST NOTABLY IMPACTING OUR POLICE AND FIRE DEPARTMENT VEHICLES, WHERE THESE VEHICLES ARE EITHER NOT AVAILABLE FOR PURCHASE, HAVE EXTENDED TIMELINES TO BUILD, OR HAVE PRICING IMPACTS, AGAIN REQUIRING ADDITIONAL FUNDS.

FACTORY ORDER RESTRICTIONS ARE STILL IN PLACE BY SOME MANUFACTURERS, WHICH IS FORCING US TO UTILIZE LOCAL OR REGIONAL RETAIL INVENTORIES AS AN ALTERNATIVE TO FACTORY ORDER.

WE CONTINUE TO SEE WIDESPREAD DELAYS OF NEW VEHICLES, NOT JUST LIMITED TO POLICE AND FIRE DEPARTMENT VEHICLES, FORCING US TO OPERATE VEHICLES BEYOND THEIR EXPECTED LIFESPANS, WHICH INCREASES THEIR DOWNTIME AS VEHICLES WITH HIGHER MILEAGES TEND TO BREAK DOWN MORE OFTEN.

ADDITIONAL TO DELAYS OF THE NEW VEHICLES VEHICLE PARTS AND OUTSOURCED SERVICES HAVE BEEN DELAYED AND HAVE INCREASED IN PRICE, MAKING OUR JOB OF KEEPING OUR FLEET VEHICLES ON THE ROAD PERFORMING THEIR JOBS THAT MUCH MORE DIFFICULT.

OPERATIONALLY, OUR FLEET OPERATIONS HAVE BEEN IMPACTED BY A MULTITUDE OF FACTORS.

SOME OF THESE ARE ONGOING OPERATIONAL CHALLENGES THAT HAVE SOLUTIONS IN PLACE, BUT COULD BENEFIT FROM FURTHER INVESTMENT AND FOCUS, WHERE OTHERS ARE INFLUENCED BY CHANGES TO OUR ECONOMY AND THE PASSING OF NEW LEGISLATION.

FIRST, HOW OUR VEHICLES ARE BEING USED BY MULTIPLE DEPARTMENTS, SPECIFICALLY ENCOURAGING THE SHARED USE BETWEEN DEPARTMENTS TO MAXIMIZE THE UTILIZATION OF EACH VEHICLE IN OUR FLEET. ALTHOUGH OUR FLEET MANAGEMENT POLICY DOES ADDRESS VEHICLE UTILIZATION PARAMETERS, IMPROVEMENTS CAN STILL BE MADE AND MULTIPLE PROJECTS ARE CURRENTLY UNDERWAY OR BEING PURSUED IN THE NEAR TERM FOR CONTINUOUS IMPROVEMENT IN THAT AREA.

THE AMOUNT OF STAFF LABOR WE HAVE AVAILABLE TO US IS, AND HAS BEEN LACKING IN COMPARISON TO THE AMOUNT OF STAFF HOURS REQUIRED TO REPAINT, REPAIR, AND MAINTAIN A FLEET OF OUR SIZE. THE AMOUNT OF VEHICLES IN OUR FLEET CONTINUED TO GROW VIA RETENTION OF OLDER VEHICLES, OR WITH THE ADDITION OF NEW VEHICLES TO SUPPORT NEW PROGRAMS AND CITY SERVICES. SOMETIMES REFERRED TO AS A FLEET CREEP, THESE ACTIONS HAVE A DIRECT EFFECT TO THE AMOUNT OF STAFF HOURS REQUIRED TO PROPERLY REPAIR AND MAINTAIN OUR FLEET OVERALL. RISING COSTS OF PARTS AND FUEL, COUPLED WITH THE INFLATION COUPLED WITH INFLATION AND STILL POSING OPERATIONAL CHALLENGES FOR US TO STAY WITHIN BUDGETED MEANS. THIS PAIRED WITH OUR LIMITED STAFFING, WE'VE HAD TO RELY MORE ON COMMERCIAL VENDORS, WHICH IS FURTHER ELEVATING OUR MAINTENANCE AND REPAIR COSTS AS WELL AS OUR VEHICLE AVAILABILITY WITH FURTHER DOWNTIME.

LASTLY, REGULATORY MANDATES ARE POSING SOME OF THE MOST AND THE LARGEST IMPACTS TO OUR FLEET OPERATIONS.

THESE IMPACTS WILL BE THE LARGEST THE CALIFORNIA PUBLIC FLEET INDUSTRY HAS EVER SEEN.

THESE REGULATIONS WILL HAVE LONG LASTING OPERATIONAL AND CAPITAL COST IMPACTS.

ALTHOUGH LISTED HERE IS AN OPERATIONAL IMPACT, IT IS ALSO BEING INFLUENCED BY VEHICLE MARKET CONDITIONS AND OTHER REGULATIONS.

AS OUR CITY SERVICES AND THE SERVICES THAT WE PROVIDE TO OUR RESIDENTS EXPAND, SO TOO DOES THE NEED FOR VEHICLES TO SUPPORT THOSE SERVICES.

THE SLIDE HERE HELPS TO PORTRAY THE LEVEL AT WHICH OUR FLEET HAS GROWN OVER THE PAST SIX YEARS, AND EVEN MORE IMPORTANTLY, THE EFFECT THAT THESE ADDITIONS AND RETENTIONS HAVE IN THE AMOUNT OF STAFFING LABOR NECESSARY TO MAINTAIN IT.

THE BOTTOM CHART SHOW SHOWN HERE ATTEMPTS TO VISUALIZE OUR AVAILABLE LABOR COMPARED TO THE LABOR DEMANDS OF THE FLEET.

ALTHOUGH OUR FTE POSITIONS HAVE NOT INCREASED FOR MANY YEARS, WE HAVE MADE OPERATIONAL SHIFTS TO ROLES AND THEIR ASSIGNMENTS TO INCREASE OUR PRODUCTIVITY FROM OUR EXISTING STAFF. FOR A CLOSER LOOK AT OUR REGULATORY IMPACT.

BY NOW, YOU MAY HAVE ALREADY BEEN AWARE OF THE EVENTS CLEAN FLEET REGULATION PASSED BY CARB.

THIS REGULATION OVER ALL OTHERS WILL HAVE THE LARGEST REGULATORY IMPACT TO OUR FLEET.

THIS REGULATION AFFECTS VEHICLES GREATER THAN 8,500 POUNDS GROSS WEIGHT, BUT THANKFULLY DOES NOT AFFECT OUR POLICE AND FIRE VEHICLES.

THIS REGULATION REQUIRES THAT WHEN WE PURCHASE A NEW VEHICLE OF THIS SIZE, WE MEET A PURCHASE PERCENTAGE REQUIREMENT BETWEEN NOW AND JULY OR EXCUSE ME, JANUARY 1ST, 2027.

THAT PERCENTAGE THEN INCREASES TO 100% BEGINNING JANUARY 1ST, 2027.

IN TOTAL, OUR CARLSBAD FLEET HAS 58 VEHICLES THAT ARE AFFECTED BY THIS REGULATION.

TO GIVE YOU A CLOSER LOOK AT OUR VEHICLE REPLACEMENT PLANNING, THIS CHART ATTEMPTS TO SHOW OUR FLEET'S ESTIMATED COSTS FOR THE PURCHASE OF NEW VEHICLES OVER THE NEXT FOUR YEARS. EACH FISCAL YEAR HAS BEEN SEGREGATED INTO THREE CATEGORIES OF REPLACEMENTS REGULAR VEHICLE REPLACEMENTS TITLED BY THEIR FISCAL YEAR STRATEGIC PLAN, REPLACEMENTS NOTED AS SP, AND REPLACEMENTS THAT ARE BEING AFFECTED BY THE ADVANCED CLEAN FLEET REGULATION NOTED AS ACF.

THE COLUMNS IN BLUE REPRESENT THE ESTIMATED PURCHASE COSTS OF NEW VEHICLES, WHILE THE COLUMNS IN RED REPRESENT OUR ACCUMULATED FUNDING FOR THOSE VEHICLES.

THE GREEN COLUMN REPRESENTS WHAT OUR ESTIMATED DEFICITS DEFICITS COULD BE.

YOU'LL SEE THAT THIS UPCOMING YEAR HAS A SUBSTANTIAL DEFICIT FOR OUR REGULAR REPLACEMENTS.

[00:35:03]

THERE ARE SOME EFFECTS TO OUR FUNDING FROM THE CITY'S STRATEGIC PLAN INITIATIVE TO REPLACE PASSENGER VEHICLES WITH EV, BUT THESE ARE RELATIVELY MINOR IMPACTS FOR THE THIS AND NEXT FISCAL YEAR, WITH LITTLE TO NO ESTIMATED DEFICITS IN FISCAL YEAR 27 MOVING FORWARD.

AS I MENTIONED, THE ACF RULE IS ESTIMATED TO HAVE A SIGNIFICANT IMPACT TO OUR OPERATIONS AND ALSO TO THE COST OF OUR VEHICLE REPLACEMENTS, WITH THE MOST SIGNIFICANT IMPACTS EXPECTED IN FISCAL YEAR 27, WHERE THE REGULATION REQUIRES ALL REGULATED VEHICLES PURCHASED AFTER JANUARY 1ST ARE ZERO EMISSION.

THE ZERO EMISSION WORK TRUCK MARKET IS SEEING EXPANSIVE AND RAPID GROWTH, WHICH IS REALLY ENCOURAGING.

HOWEVER, THE COSTS ASSOCIATED WITH THAT NEW TECHNOLOGY IS AT TIMES TWO OR EVEN THREE TIMES THE COST OF THEIR INTERNAL COMBUSTION COUNTERPARTS.

TO HELP MITIGATE THE COST PREMIUMS FOR THESE ZERO EMISSION VEHICLES, WE ARE TRACKING AND ACTIVELY SEEKING STATE AND FEDERAL INCENTIVES AND REBATES TO HELP OFFSET ANY ESTIMATED DEFICITS IN OUR AVAILABLE FUNDING.

THE CHART SHOWN HERE ATTEMPTS TO SHOW THE QUANTITY OF VEHICLES WE ANTICIPATE TO PURCHASE OVER THE NEXT FOUR FISCAL YEARS, AND THE POTENTIAL INCENTIVES AVAILABLE FOR EACH OF THOSE VEHICLES. WHILE THESE INCENTIVES ARE SUBSTANTIAL, THEY ARE TEMPORARY AND NOT A GUARANTEED FUNDING SOURCE, SO ANNUAL UPDATED REPLACEMENT FORECASTS AND ADJUSTMENTS TO OUR REPLACEMENT CONTRIBUTIONS WILL CONTINUE TO BE THE MOST EFFECTIVE STRATEGY FOR MITIGATING THESE IMPACTS MOVING FORWARD.

BUILDING FROM THE USE OF OUR ISF TO MITIGATE PURCHASE COSTS.

OTHER OPERATIONAL AND ECONOMICAL IMPACTS ARE BEING MITIGATED BY MULTIPLE ONGOING PROJECTS.

IN ADDITION TO HIRING A THIRD PARTY CONSULTANT, MATRIX SERVICES TO EVALUATE OUR FLEET OPERATIONS AND PROVIDE RECOMMENDATIONS FOR POTENTIAL COST SAVINGS, WHICH I'LL REVIEW A LITTLE BIT MORE IN DETAIL LATER.

WE ALSO TOOK STEPS IN PREVIOUS FISCAL YEARS TO EXPAND THE USE OF OUR FLEET SOFTWARE, ADOPTING AND INTEGRATING NEW ENHANCEMENTS.

SMART APPS WILL IMPROVE THE WAY WE COMMUNICATE WITH OUR DRIVERS, AND HOW DRIVERS CAN COMMUNICATE WITH FLEET.

ASSET ANALYTICS WILL IMPROVE THE WAY WE COMMUNICATE OUR PERFORMANCE, ALLOWING OUR FLEET DATA TO BE INTEGRATED WITH CITYWIDE REPORTING PLATFORMS LIKE TABLEAU.

CHARGE MANAGEMENT WILL IMPROVE THE WAY THAT WE MANAGE OUR EV CHARGING HERE IN THE CITY.

WE HAVE INVESTED SUBSTANTIALLY IN GPS AND TELEMATICS SOLUTION, WHICH WILL HAVE A PILOT PROGRAM IMPLEMENTATION BEGINNING SOON THAT WILL MOVE INTO A FLEET WIDE DEPLOYMENT LATER NEXT YEAR. THIS GPS TECHNOLOGY WILL HELP US BETTER UNDERSTAND THE UTILIZATION OF OUR FLEET AND REPORT BEYOND JUST VEHICLE MILES TRAVELED.

IT WILL ALSO PROVIDE KEY INFORMATION ABOUT VEHICLE HEALTH, DRIVER SAFETY, PROVIDE SUPERVISORS WITH REAL TIME DATA AND VEHICLE LOCATIONS TO BETTER SERVE OUR RESIDENTS.

WE ARE EXPANDING COMMUNICATION WITH DEPARTMENTS AND DRIVERS THROUGH INCREASED EMAIL STATUS UPDATES FROM DEPARTMENT TO DEPARTMENT LIAISONS AND THEIR SUPERVISORS BY CREATING AUTOMATED EMAILS TO THEIR DRIVERS FOR WHEN WE WE BEGIN WORK ON THEIR VEHICLE AND WHEN VEHICLE WORK IS COMPLETED AND THEY'RE READY FOR PICKUP.

LASTLY, WE HAVE MULTIPLE INFRASTRUCTURE PROJECTS IN PROGRESS THAT INCLUDE OUR FLEET FACILITY REMODEL AND THE ELECTRIC VEHICLE CHARGING STATION DEPOT WITH SDG&E.

OUR FLEET FACILITY REMODEL IS CURRENTLY AT A 90% DESIGN AND MOVING ALONG VERY WELL WITH OUR NEW DESIGN FIRM.

WE EXPECT FINAL DESIGNS READY FOR PERMITTING THIS MONTH WITH AN ANTICIPATED CONSTRUCTION START OF 2025.

OUR DC FAST CHARGING DEPOT WENT ACTIVE, WENT LIVE AND ACTIVE LAST YEAR AND IS THE FIRST MUNICIPAL SITE TO ACTIVATE IN SDG&E TERRITORY.

WE CONTINUE TO HAVE INQUIRIES REGARDING THIS PROJECT AND HOST VISITS WITH OTHER AGENCIES INTERESTED IN PARTICIPATING.

TO DATE, THE CITY'S FINANCIAL OBLIGATION IN SUPPORTING THIS SITE IS MINIMAL, WITH THE COST OF INFRASTRUCTURE AND CONSTRUCTION BURDENED BY SDG&E CITY INVESTMENT IS LIMITED TO THE PURCHASE OF THE CHARGING STATION ITSELF AND THE ELECTRICITY BEING CONSUMED.

LAST WEEK WE RECEIVED THE 60% DESIGNS FROM SDG&E TO BEGIN OUR SECOND PHASE OF INSTALLATION TO INSTALL 10 ADDITIONAL CHARGERS, BRINGING OUR CURRENT COUNT UP TO 12.

CONSTRUCTION FOR THAT PHASE IS ANTICIPATED TO BEGIN THIS FALL.

IN TOTAL, THIS SITE WILL HAVE A CAPACITY OF 28 LEVEL THREE CHARGERS AND POSITION US WITH THE NECESSARY INFRASTRUCTURE TO SUPPORT OUR STRATEGIC PLANNING OBJECTIVES AND COMPLIANCE WITH THE ACF RULE.

I MENTIONED THAT PART OF OUR CONTINUOUS IMPROVEMENTS INCLUDED A REPORT FROM MATRIX CONSULTING.

THIS DRAFT REPORT HAS BEEN PROVIDED AS EXHIBIT AS EXHIBIT ONE FOR YOUR REFERENCE.

THIS REPORT WAS REQUESTED BY FLEET TO HELP IDENTIFY COSTS TO THE CITY, OUR COST SAVINGS TO THE CITY, WITH AN EMPHASIS ON IF A LEASE OPTION FOR OUR VEHICLES WAS WARRANTED.

THE MATRIX CONSULTING TEAM CONSISTED OF EXPERTS IN FLEET BUSINESS BEST PRACTICES, GOVERNMENT VEHICLE ACQUISITION AND SERVICE, AND COMMERCIAL VEHICLE FINANCE.

THE MATRIX APPROACH INCLUDED THE CREATION OF A FLEET PROFILE THAT REVIEWED OUR CURRENT OPERATIONS, OUR POLICIES, OUR PRACTICES, AND ASSESS THESE TO IDENTIFY OUR FLEET PERFORMANCE. THIS PROFILE ALSO INCLUDED AN OVERVIEW OF OUR CURRENT FLEET MAKEUP, OUR OPERATING AND CAPITAL BUDGETS AND ANALYSIS AND SUMMARY OF OUR STAFFING POLICY

[00:40:09]

MATRIX ALSO SURVEYED SURVEYED OUR USER DEPARTMENTS, SURVEYING THEM AS TO OUR PERFORMANCE IN 11 SEPARATE AREAS OF CUSTOMER SERVICE.

THIS PROFILE AND SURVEY WERE USED BY MATRIX TO IDENTIFY SEVERAL KEY FINDINGS AND OBSERVATIONS THAT LED TO THE CONSIDERATION OF FOUR OPTIONS FOR FURTHER ANALYSIS AND EXPLORATION. FINALLY, MATRIX CONDUCTED A COST BENEFIT ANALYSIS OF OUR OPTIONS AND PROVIDED THEIR RECOMMENDATION OF WHICH TO PURSUE FURTHER.

MATRIX SURVEYED OUR FIVE LARGEST CLIENT DEPARTMENTS AND CATEGORIZED THEIR SATISFACTION RATINGS INTO THESE 11 DIFFERENT SURVEY CATEGORIES.

THE SURVEY RESULTS IDENTIFIED THAT WE ARE GOOD AT KEEPING OUR VEHICLES AVAILABLE.

WE HAVE VERY LITTLE ISSUES WITH REPEAT REPAIRS OR COMEBACKS WE HAVE PROVIDED WE PROVIDE PROFESSIONAL AND COURTEOUS SERVICE TO OUR CUSTOMERS AND OVERALL, OUR DEPARTMENTS ARE SATISFIED WITH OUR EXISTING ACQUISITION PROCESS.

HOWEVER, THERE ARE AREAS WHERE WE COULD BE IMPROVED.

THE TIMELINESS OF OUR REPAIRS COULD BE BETTER.

IT DOES TAKE US LONGER TO COMPLETE LARGER MAINTENANCE JOBS AND MAJOR REPAIRS.

OUR COMMUNICATION WITH DEPARTMENTS IS AT TIMES NOT EQUITABLE, NOTING POLICE AND FIRE COMMUNICATION IS HIGH, BUT NOT SO MUCH WITH OTHER DEPARTMENTS.

SOMETIMES THERE AREN'T ENOUGH TECHNICIANS AVAILABLE TO KEEP OUR DAILY KEEP UP WITH OUR DAILY WORKLOADS.

AND LASTLY, OUR CURRENT FACILITY DOES ENCOURAGE SOME INTERRUPTION BY DRIVERS.

IT DOES LACK A PROPER TRAINING ROOM AND COULD BENEFIT FROM MORE WORK BAYS.

AFTER COMPLETING THEIR FLEET PROFILE AND SURVEYS, MATRIX WAS ABLE TO ASSESS OUR FLEET PERFORMANCE.

THIS ASSESSMENT FOUND THE FOLLOWING KEY FINDINGS AND OBSERVATIONS.

OUR CITY AND FLEET POLICIES ARE STRONG.

OUR CITY'S STRATEGIC PLAN, CLIMATE ACTION PLAN AND FLEET MANAGEMENT POLICIES, AND OUR OUR CURRENT METHOD OF VEHICLE REPLACEMENTS HAVE BUILT A SOLID BASIS FOR IMPLEMENTATION OF FLEET BEST PRACTICES AND ADVANCING CITY INITIATIVES.

OUR AVERAGE FLEET AGE IS WITHIN INDUSTRY STANDARDS AND RESPECTS OPTIMAL LIFE CYCLES FOR VEHICLE REPLACEMENT, WHICH ARE SET TO MINIMIZE VEHICLE TOTAL COST OF OWNERSHIP.

AND ORGANIZATIONALLY, WE'RE MAKING A SHIFT TOWARDS ELECTRIFYING OUR FLEET TO WHICH VEHICLE AVAILABILITY AND NOT INFRASTRUCTURE WAS IDENTIFIED AS A RISK FACTOR FOR NOT MEETING THESE GOALS.

PREVENTIVE MAINTENANCE, COMPLIANCE AND REPAIR TIMES ARE BEGINNING TO FALL BEHIND STANDARD, WHICH WAS ATTRIBUTED TO THE GROWTH OF OUR FLEET, COMBINED WITH CONSTRAINTS TO OUR EXISTING STAFF LEVELS AND THE SIZE OF OUR EXISTING FACILITY.

USING OUR FLEET PROFILE, PERFORMANCE AND SURVEY RESULTS, MATRIX IDENTIFIED FOUR COST SAVING OPTIONS THAT GARNERED FURTHER ANALYSIS AND EXPLORATION.

THE FIRST OPTION FOR CONSIDERATION WAS TO MAINTAIN THE STATUS QUO, KEEPING OUR CURRENT METHOD OF OWNING AND MAINTAINING VEHICLES THROUGH A MIX OF IN-HOUSE AND OUTSOURCED MAINTENANCE. SECOND WAS TO DELAY VEHICLE REPLACEMENT AND EXTEND THE LIFE CYCLE OF OUR CURRENT VEHICLES BEYOND THEIR EXISTING SCHEDULES.

THE THIRD WAS TO INCREASE OUR MAINTENANCE, FACILITY SIZE AND STAFFING LEVELS COMMENSURATE TO OUR FLEET SIZE.

AND LASTLY, TO LEASE A PORTION OF THE FLEET SWITCH FROM OUR CURRENT OWNERSHIP METHODS TO A LEASING MODEL WITH AND WITHOUT MAINTENANCE INCLUDED.

A WEIGHTED CRITERIA FOR EVALUATING THESE OPTIONS WAS CREATED BY MATRIX WITH INPUT FROM CITY STAFF, AND THIS RESULTED IN A DECISION MATRIX YOU SEE HERE WHICH PRIORITIZED AND WEIGHTED THESE SIX KEY AREAS OF FOCUS.

ULTIMATELY, MATRIX RECOMMENDED THAT WE EXPLORE EXPANDING OUR SERVICE CAPACITY, BRINGING MORE WORK IN-HOUSE.

MATRIX CONCLUDED THAT THIS WOULD PROVIDE THE LONGEST TERM COST SAVINGS WITHOUT SACRIFICING SERVICE LEVELS.

MATRIX NOTED THAT THE STATUS QUO OPTION PROVIDED NO IMMEDIATE OR LONG TERM COST SAVINGS, AND DIDN'T ADDRESS OUR DECLINING SERVICE LEVELS.

DELAYING VEHICLE REPLACEMENTS WOULD INCREASE MAINTENANCE DOWNTIME, INCREASE OUR TOTAL LIFE CYCLE COSTS, AND AGAIN, NOT ADDRESS OUR DECLINING SERVICE LEVELS.

AND LASTLY, WITH THE LEASE OPTION, SERVICE LEVELS COULD BE MAINTAINED AT THE STATUS QUO LEVEL, BUT THE COST OF LEASING, BOTH WITH AND WITHOUT A MAINTENANCE SOLUTION WOULD NOT PROVIDE A COST SAVINGS.

SOME OF OUR NEXT STEPS AND FURTHER IMPROVEMENTS FOR THIS NEXT FISCAL YEAR, WE WERE ABLE TO ADD ADDITIONAL WORK BAYS INTO OUR FLEET REMODEL PROJECT AND DESIGN AND DESIGN A CUSTOMER SERVICE RECEPTION AREA TO DISCOURAGE INTERRUPTIONS TO OUR TECHNICIANS WHILE THEY WORK.

WE EXPECT TO REDUCE OPERATING COSTS BY UTILIZING INFORMATION FROM OUR GPS PILOT PROGRAM TO BETTER IDENTIFY AND REDUCE UNDERUTILIZED VEHICLES, AND IN TURN, WE ALSO EXPECT TO INCREASE THE ACCESSIBILITY OF CITY VEHICLES BY CREATING A PLAN TO IMPLEMENT CONSOLIDATED MOTOR POOLS AT STRATEGIC CITY SITES.

WE WILL CONTINUE TO ACTIVELY PURSUE STATE AND FEDERAL FUNDING AND INCENTIVES TO OFFSET THE COSTS OF NEW EV PURCHASES.

AND FINALLY, WE WILL UTILIZE OUR UPGRADED SOFTWARE TO ADVANCE KEY INITIATIVES, KEY CITY INITIATIVES, AND IMPROVE OUR COMMUNICATION WITH OUR DEPARTMENTS.

AND LASTLY, I AM PROUD TO ANNOUNCE THAT OUR EFFORTS HAVE NOT GONE UNNOTICED BY THE INDUSTRY, AS THE CITY OF CARLSBAD WAS RECENTLY HONORED AS THE EIGHTH RANKED PUBLIC FLEET IN THE NATION BY THE NAFA FLEET MANAGEMENT ASSOCIATION.

[00:45:03]

AND I'M AVAILABLE FOR ANY QUESTIONS YOU MIGHT HAVE.

DO WE HAVE ANY SPEAKERS? THERE ARE NO SPEAKERS.

THANK YOU. QUESTIONS FROM COUNCIL.

COMMENTS FROM COUNCIL.

MISS BURKHOLDER, DID YOU HAVE A COMMENT? MISS ACOSTA? GREAT.

THANK YOU SO MUCH FOR THE PRESENTATION.

I DO THINK IT'S SO IMPORTANT TO BE PROACTIVE AND TAKE A LOOK AT WHAT THE BIGGER SOCIO ECONOMIC FACTORS ARE, AND TO SEE THAT THE DELAYS IN VEHICLE DELIVERY WILL REALLY AFFECT US.

AND WE NEED TO MAKE SURE THAT WE ARE LOOKING AT THAT BIG PICTURE.

THE MATRIX REPORT WAS REALLY WONDERFUL TO KNOW THAT WE HAVE THIRD PARTY EXPERTS FROM OUTSIDE THAT ARE NOT ONLY PROVIDING US WITH DATA AND SURVEYS, BUT ALSO PROVIDING US WITH MORE INFORMATION ABOUT THE COMPARISON WITH OTHER JURISDICTIONS.

AND THEN, OF COURSE, I WAS HAPPY TO SEE THAT WE ARE ON TRACK FOR OUR ELECTRIFICATION AND NOT RUNNING BEHIND ON ANY OF THOSE BECAUSE WE HAVE OBLIGATIONS NOT JUST TO OUR CAP, BUT TO STATE LAW. SO I WANT TO MAKE SURE THAT WE ARE ON TRACK WITH THAT.

THAT'S AN ISSUE THAT'S VERY NEAR AND DEAR TO MY HEART, AND WANT TO MAKE SURE THAT WE ARE BEING AS GREEN AND CLEAN AS POSSIBLE.

SO THANK YOU FOR THE PRESENTATION AND ALL THE HARD WORK.

I KNOW IT'S NOT JUST YOU, AS WITH ANY ANY OF THESE PRESENTATIONS, THE PERSON WHO'S SITTING AT THE AT THE DESK GETS ALL THE CREDIT, BUT I DON'T KNOW WHO ALL THE OTHER PEOPLE ARE BEHIND YOU. BUT I WANT TO EXTEND THE THANKS TO THE REST OF THE PEOPLE THAT YOU WORK WITH AND HAVE WORKED WITH ON THIS.

SO THANKS. THANK YOU.

I'M SORRY. I DID HAVE A QUICK QUESTION ON IT.

HOW OFTEN DO WE HAVE TO SEND OUR CARS TO THE DEALERSHIP, EITHER TO BE FIXED FOR RECALLS OR FOR COMPLICATED REPAIRS? THEY ARE SENT ON A WEEKLY BASIS AT TIMES WITH THE AMOUNT OF VEHICLE REPAIRS THAT WE DO HAVE, AND ESPECIALLY THE AMOUNT OF RECALLS THAT WE TEND TO GET FROM SERVICE AND MAINTENANCE WE TEND TO PRIORITIZE THE MAINTENANCE IN-HOUSE AND LARGER REPAIRS TO SUBLET OUT FOR THE LENGTH OF DURATION OF TIME IT WOULD TAKE AWAY FROM OUR STAFF TO MAINTAIN THE REST OF OUR VEHICLES.

THAT THAT IS A DAILY OCCURRENCE.

DO WE GET PRETTY QUICK TURNAROUND WHEN THEY, WHEN THEY GET SENT TO THE DEALERSHIP OR DO THEY DO OUR RESOURCES JUST SIT AT THEIR DEALERSHIP FOR EXTENDED PERIODS OF TIME? IT DOES DEPEND ON THE DEALERSHIP, YES.

SO INSTANCES WHERE DEALERSHIPS THEMSELVES ARE OVER UNDERSTAFFED AND HAVE MORE LESS DAILY CAPACITY FOR THEM TO BE ABLE TO COMPLETE THOSE SERVICES. SO IF I MENTION THE MORE THAT WE SUBLET OUT THOSE SERVICES, THE LONGER DURATION, NOT JUST IN TRAVEL TIME TO AND FROM THOSE DEALERSHIPS, BUT WE'RE ALSO AT THEIR WHIM FOR RECEIVING THOSE VEHICLES ON A REPAIR.

SO OTHER THAN RECALLS, WHEN WE SUB THIS WORK OUT, WE'RE PAYING RETAIL FOR THESE REPAIRS THROUGH A DEALERSHIP.

IS THAT CORRECT? AT TIMES, YES.

WE DO HAVE NEGOTIATED RATES THAT ARE LOWER.

SO DID MATRIX LOOK AT AND I KNOW THEY LOOKED AT STAFFING, BUT IS IT BETTER TO SPEND THE MONEY ON STAFFING RATHER THAN SPEND THE MONEY ON PAYING A DEALERSHIP TO REPAIR OUR CARS? WAS THERE A BENEFIT TO OUR OUR OWN PEOPLE? BUT I WILL TELL YOU, ONE OF MY PERSONAL THOUGHTS IS IF IT'S OUR OWN PEOPLE, WE KNOW THERE'S PRIDE OF WORK, OR IF WE SEND IT OUT, WE HAVE NO IDEA WHO'S WORKING ON OUR CARS.

ABSOLUTELY. AND IN THE MATRIX REPORT, THEY DID ESTABLISH THERE WAS A SUBSTANTIAL A SUBSTANTIAL COST SAVINGS OVER A FIVE YEAR TERM FOR INSOURCING THOSE SERVICES.

THE COST OF OUR LABOR FOR FULL TIME EMPLOYEES, KEEPING THOSE SERVICES IN HOUSE IS SUBSTANTIALLY LESS OF A COST THAN OUTSOURCING.

ARE WE WORKING IN THAT DIRECTION? DID I MISS ANYTHING IN THE PRESENTATION? ARE WE TRYING TO GET MORE IN-HOUSE SO WE DON'T HAVE TO RELY ON OUTSIDE VENDORS? THE THE EXPANSION OF OUR CAPACITY ITSELF FOR THE FACILITY IS IS ONE, ONE PIECE OF ONE, ONE ELEMENT AND SEEKING COST SAVINGS IN OTHER AREAS WHERE WE CAN CAPITALIZE ON COST SAVINGS TO BE ABLE TO MOVE SOMETHING FORWARD.

AND I WILL ALSO SAY THAT IN THIS YEAR'S BUDGET, WE ARE NOT INCLUDING ANY ADDITIONAL FTES TO THE BUDGET.

AND I KNOW THAT WE'RE GOING OUT OF OUR WAY NOT TO ADD ANY FTES.

BUT SOMETIMES, IF IT MAKES MORE SENSE TO ADD AN FTE FOR, LET'S JUST SAY, A DOLLAR TO SAVE $2 ON REPAIRS THROUGH A DEALERSHIP. I WOULD LIKE THAT AT LEAST BROUGHT TO THE COUNCIL.

EVEN THOUGH YOUR MARCHING ORDERS HAVE BEEN TO REDUCE THOSE FTES.

[00:50:01]

AND I THINK THAT IN-HOUSE WORK, OUR OUR FOLKS TAKE MUCH MORE PRIDE IN THE WORK THAN US JUST GETTING RANDOM MECHANIC.

WE HAVE NO IDEA OF WHAT WHAT THEIR SKILL LEVELS ARE OR THEIR THEIR PRIDE IN THEIR WORK IS.

SO WITH THAT, ANY CLOSING COMMENTS? ANYTHING MORE QUESTIONS BASED ON WHAT I SAID? A THIS IS JUST A PRESENTATION.

YOU DON'T NEED A VOTE FOR THIS.

SO THANK YOU VERY MUCH.

THANK YOU. ITEM NINE CITY MANAGER, PLEASE.

[9. NEW APPROACH TO PRIORITIZING AND FUNDING INFRASTRUCTURE, PARKS AND OTHER MAJOR CONSTRUCTION PROJECTS]

AND MAKING THE PRESENTATION IS ME.

JOINING US THOUGH OBVIOUSLY WILL BE OUR DEPUTY CITY MANAGER OF PUBLIC WORKS, PAZ GOMEZ, ALONG WITH OUR SENIOR MANAGEMENT ANALYST, CRADDOCK STROPES ALONG WITH OUR FINANCE DIRECTOR, IS THAT CORRECT? WE'VE GOT ALL THESE FOLKS COMING FORWARD BECAUSE I'M DOING THE PRESENTATION AND THEY KNOW THAT I NEED THE HELP.

SO WITH THAT SAID, THANK YOU SO MUCH, MAYOR, FOR ALLOWING US THIS OPPORTUNITY.

I AM GOING TO BE MAKING TONIGHT'S PRESENTATION BECAUSE IT INVOLVES SOME IMPORTANT CHANGES FOR THE FROM THE PLANNING, PRIORITIZING, AND FUNDING OF OUR CAPITAL PROJECTS.

THIS PRESENTATION IS INFORMATIONAL SO THE ONLY RECOMMENDED ACTION IS TO SIT BACK AND RECEIVE THE REPORT.

NOW AS YOU CAN SEE BY THIS TIMELINE.

I'M GETTING. I'M GOING TO QUICK.

I DO NEED HELP, RIGHT? ALL RIGHT. NOW, AS YOU CAN SEE BY THIS TIMELINE, TONIGHT'S PRESENTATION IS THE FIRST OF SEVERAL UPCOMING MEETINGS THAT ARE PART OF OUR ANNUAL BUDGET PROCESS.

RIGHT OFF THE BAT, FOR THOSE IN THE AUDIENCE OR THOSE WATCHING AT HOME, I WANT TO EXPLAIN WHAT WE MEAN BY CAPITAL PROJECT.

IN TERMS OF CITY GOVERNMENT, A CAPITAL PROJECT REFERS TO A LONG TERM, LARGE SCALE PROJECT AIMED AT BUILDING, IMPROVING, OR MAINTAINING SOME ASPECT OF CITY'S INFRASTRUCTURE. THIS COULD INCLUDE THINGS LIKE LIBRARIES OR OTHER STRUCTURES, PLAYGROUNDS, STREETS, BRIDGES, WATERS, WASTE WATER PIPES, AND DRAINAGE SYSTEMS. NOW, CAPITAL PROJECTS ARE DIFFERENT FROM OPERATIONS BECAUSE THEIR SIZE, COST, AND HOW LONG IT TAKES THEM TO BE PLANNED, DESIGNED AND BUILT.

THEY OFTEN DRAW ON DIFFERENT FUNDING SOURCES OTHER THAN OUR DAY TO DAY OPERATIONS DO.

NOW, GIVEN THESE FACTORS, CAPITAL IMPROVEMENT PROJECTS REQUIRE CAREFUL PLANNING OVER MANY YEARS.

NOW, HERE'S A TYPICAL PROGRESSION OF A CAPITAL PROJECT FROM WHEN THE FIRST IDEA WAS OR NEED IS IDENTIFIED THROUGH FINAL CONSTRUCTION, THE PROCESS CAN EASILY TAKE 5 TO 10 YEARS.

CITY COUNCIL AND I SAY THAT AS IF THAT'S A BAD THING.

IT'S GOVERNMENT. IT'S IT.

THINGS TAKE LONGER.

AND AGAIN, IT'S JUST PART OF OUR PLANNING PROCESS BECAUSE WE WANT TO MAKE SURE THAT WE GET IT RIGHT THE FIRST TIME.

SO THE CITY COUNCIL APPROVES NEW PROJECTS TO BE ADDED TO THE CAPITAL IMPROVEMENT PROGRAM.

AND THEN STAFF HAS HISTORICALLY REQUESTED FUNDING WITH THE ANNUAL BUDGET LITTLE BY LITTLE UNTIL ALL THE FUNDS HAVE BEEN SET ASIDE.

NOW, THE GOOD THING ABOUT THIS APPROACH IS WE HAVE NOT HAD TO TAKE OUT BONDS TO FUND LARGER PROJECTS LIKE MOST CITIES DO.

BUT WE HAVE ENCOUNTERED THREE DISADVANTAGES TO THIS APPROACH.

FIRST, WE ARE TYING UP FUNDS IN PROJECTS THAT ARE NOT READY TO BE BUILT.

SOMETIMES NEEDS AND PRIORITIES CHANGE, SO HAVE MORE CHECK INS WITH CITY COUNCIL AS PROJECTS PROGRESS TO MAKE SURE THAT WE ARE WORKING ON THE RIGHT THINGS AT THE RIGHT TIME.

AND THEN FINALLY, WE OFTEN SEE SIGNIFICANT CHANGES IN PROJECT COSTS BETWEEN ITS INITIAL APPROVAL AND WHEN IT'S READY TO BE BUILT.

NOW LAST YEAR WE DECIDED TO TAKE A FRESH LOOK AT HOW WE'RE MANAGING THE CAPITAL IMPROVEMENT PROGRAM.

THIS IS SOMETHING WE'VE BEEN DOING WITH ALL ASPECTS OF THE BUDGET AND MANY OTHER CITY SYSTEMS, AND IT REALLY IS OUR OUR CULTURE OF THIS CONTINUOUS IMPROVEMENT OR CONTINUAL IMPROVEMENT.

AND THIS FITS IN WITH CITY COUNCIL'S GOAL OF ORGANIZATIONAL EXCELLENCE AND FISCAL HEALTH.

THE TIME SEEMED RIGHT TO LOOK AT CIP FOR A FEW REASONS.

WE ARE TRANSITIONING FROM A GROWING CITY, ONE FOCUSED ON MAINTENANCE.

BEFORE, MOST PROJECT PRIORITIES WERE BASED ON THE STANDARDS IN THE GROWTH MANAGEMENT SYSTEM.

WITH LESS DEVELOPMENT, WE RECEIVE LESS MONEY IN DEVELOPMENT FEES, WHICH FOR MANY YEARS PROVIDED A STEADY STREAM OF REVENUE FOR A LOT OF OUR MAJOR PROJECTS.

AND THEN FINALLY, THE NEEDS OF OUR COMMUNITY ARE CHANGING, AND MANY NEW REQUESTS FOR PROJECTS ARE TO ENHANCE CARLSBAD'S QUALITY OF LIFE.

[00:55:06]

AS YOU CAN SEE, WE'RE CALLING IT A JUST IN TIME APPROACH AND HERE'S WHY.

THE FIRST CHANGE IS THE PLANNING HORIZON.

WE'RE GOING TO FOCUS ON A ROLLING 5 YEAR WINDOW RATHER THAN THIS 15 YEAR LOOK.

THE SECOND CHANGE IS THE TIMING OF WHEN STAFF WILL REQUEST FUNDING FOR THE PROJECTS, INSTEAD OF REQUESTING FUNDING FOR PROJECTS WELL IN ADVANCE OF WHEN THEY'RE READY.

WILL REQUEST FUNDING DURING THE ANNUAL BUDGET PROCESS ONLY AS EACH STAGE OF THE PROJECT IS BEING COMPLETED.

THE EXCEPTION WILL BE CONSTRUCTION FUNDING.

STAFF WILL REQUEST CONSTRUCTION FUNDING WHEN THE PROJECT IS SHOVEL READY, NOT AS PART OF THE ANNUAL BUDGET PROCESS.

AND FINALLY, WE'VE CALLED OUR LIST OF PROJECTS TO REFLECT WHAT CAN BE REALISTICALLY ACCOMPLISHED WITHIN THE NEXT 5 YEARS.

NOW, THE BUDGET WILL STILL INCLUDE A FULL LIST OF PROJECTS ANTICIPATED OVER THE NEXT 15 YEARS, SO THOSE PROJECTS ARE NOT GOING AWAY.

WE'RE SIMPLY FOCUSING ON THIS NEXT 5 YEAR PERIOD SO THAT IT CLOSELY ALIGNS WITH OUR STRATEGIC 5 YEAR PLAN.

NOW, ONE OF THE MAIN BENEFITS OF THIS APPROACH IS THAT WE'LL BE ABLE TO PROVIDE MORE ACCURATE ESTIMATES OF PROJECT COSTS AND TIMING.

WE'LL ALSO BE FREEING UP MONEY FOR OUR CURRENT NEEDS OF OUR PROJECTS, AND YOU'LL STILL HAVE MORE OPPORTUNITIES TO PRIORITIZE PROJECTS.

AND THE OVERALL PROCESS IS GOING TO BE WAY MORE TRANSPARENT.

NOW GOING BACK TO OUR PROJECT LIFE CYCLE, HERE'S WHAT THESE CHANGES ARE GOING TO LOOK LIKE.

CITY COUNCIL WILL STILL APPROVE NEW PROJECTS BEFORE THEY'RE ADDED TO THE CIP.

THEN EACH YEAR DURING THE BUDGET PROCESS, STAFF WILL ONLY REQUEST FUNDING FOR PROJECTS READY TO MOVE ON TO THE NEXT PHASE OF DEVELOPMENT UP TO THE FINAL DESIGN. WE WILL THEN REQUEST CONSTRUCTION FUNDING AS PROJECTS ARE READY, REGARDLESS OF WHERE THEY MAY FALL IN THE BUDGET YEAR.

NOW, THIS WOULD BE A GENERAL APPROACH, BUT AND THIS WOULD NOT APPLY TO CERTAIN PROJECTS EITHER BECAUSE THEY'RE FUNDED WITH ENTERPRISE OR AND OR GRANT FUNDS. NOW ENTERPRISE FUNDS CAN ONLY BE USED FOR WATER, SEWER OR DRAINAGE PROJECTS, AND THOSE PROJECTS ARE TYPICALLY REQUIRED FOR SAFETY AND MAINTENANCE.

GRANT FUNDED PROJECTS OFTEN HAVE MATCHING REQUIREMENTS OR OTHER RULES ABOUT WHEN THE FUNDS NEED TO BE COMMITTED, AND OR WHEN THOSE NEED TO BE SPENT.

FINALLY, WE'RE NOT USING THIS APPROACH FOR MAINTENANCE PROJECTS WHICH FALL UNDER THE BEING BRILLIANT AT THE BASICS PART OF YOUR STRATEGIC PLAN.

KEEPING UP WITH ROUTINE MAINTENANCE ENDS UP SAVING THE CITY MILLIONS OF DOLLARS IN COSTLY REPAIRS.

SO UNDER THIS NEW APPROACH, HERE'S A LOOK AT HOW WE WOULD BE ALLOCATING FUNDING DIFFERENTLY.

BEFORE WE WOULD REQUEST FUNDING ANNUALLY, AND FUNDING WOULD BE ALLOCATED OVER A 15 YEAR PERIOD.

NOW WE HAVE REMOVED THE CONSTRUCTION FUNDING ALLOCATED FOR FUTURE PROJECTS BACK TO FUND BALANCES.

SO THE MONEY IS NOT GOING AWAY.

LET ME SAY THAT AGAIN THE MONEY IS NOT GOING AWAY.

IT'S STILL THERE. IT WILL SHOW UP IN OUR BALANCE SHEET FOR THE VARIOUS FUNDING SOURCES.

THIS IS JUST ONE WAY OF THIS NEW PROCESS THAT WILL INCREASE OUR TRANSPARENCY, AND IT WILL HELP CITY COUNCIL HAVE A BETTER UNDERSTANDING OF THE MONEY THAT'S ACTUALLY AVAILABLE. NOW, ANOTHER CHANGE RELATED TO FUNDING IS HOW WE'LL BE USING COST ESCALATORS.

AGAIN, WE DON'T WANT ANY SURPRISES WHEN IT COMES TIME TO REQUEST CONSTRUCTION FUNDING.

WE'RE NOW USING A MORE UNIFORM APPROACH TO ADJUSTING COST ESTIMATES BASED OFF THE CONSTRUCTION COST INDEX FOR OUR REGION.

AND ONE OF THE REASONS WE WANT TO GO OVER THIS NEW APPROACH WITH YOU BEFORE PRESENTING THE PRELIMINARY BUDGET, IS THAT YOU'RE GOING TO SEE A MUCH SMALLER FUNDING REQUEST IN THIS YEAR'S BUDGET, AND THERE'S A FEW REASONS FOR THIS.

ONE FOR SOME PROJECTS WE ALREADY HAVE MONEY APPROPRIATED FOR THE WORK PLAN DURING THE NEXT FISCAL YEAR.

AND THEN TWO, WE ALSO HAVE REMOVED FUNDING NEEDED FOR FUTURE CONSTRUCTION BECAUSE WE WILL NOW BE ASKING FOR IT ONCE THOSE PROJECTS ARE NOW READY.

THIS DOESN'T MEAN LESS WORK IS BEING DONE.

QUITE THE CONTRARY, IT AND IT ALSO DOESN'T MEAN THAT WE'RE SPENDING LESS.

WHAT IS CHANGING IS THE TIMING OF THE REQUEST FOR FUNDING, SO THAT THIS WAY WE CAN BE MUCH MORE ACCURATE IN BOTH THE PRESENTATIONS TO CITY COUNCIL, BUT THEN ALSO IN OUR ESTIMATES GOING FORWARD.

NOW WHEN A PROJECT IS READY FOR CONSTRUCTION, STAFF WILL PROVIDE THREE KEY PIECES OF INFORMATION THE ESTIMATED COST BASED ON DETAILED PLANS AND CURRENT MARKET CONDITIONS, MEANING A COST ESTIMATE THAT BETTER REFLECTS THE ACTUAL COST.

NO SURPRISES.

THE BALANCE AVAILABLE FOR THE FUNDS THAT COULD BE USED TO PAY FOR CONSTRUCTION, AND THEN A LIST OF OTHER PROJECTS IN THE PIPELINE THAT WOULD ALSO RELY ON THOSE FUNDING SOURCES. THIS WAY, YOU CAN PRIORITIZE THE TIMING OF PROJECTS BECAUSE YOU KNOW EXACTLY HOW MUCH FUNDING YOU HAVE TO WORK WITH AT ANY GIVEN TIME, AND A CLEAR

[01:00:05]

SO TO RECAP, THERE'S NO ACTION ASSOCIATED WITH THIS UPDATE.

STAFF, JUST WANTED TO GO OVER WITH YOU BEFORE WE PRESENT THE PRELIMINARY BUDGET THAT'S GOING TO BE ON MAY 21ST.

THIS NEW APPROACH IS GOING TO HAVE SOME SIGNIFICANT, IMPORTANT BENEFITS, AND ULTIMATELY IT'S GOING TO PROVIDE WITH CITY COUNCIL WITH MORE FLEXIBILITY TO PRIORITIZE PROJECTS A ND THIS ENTIRE PROCESS IS GOING TO BE MUCH MORE TRANSPARENT FOR OUR PUBLIC.

NOW, I WOULD LIKE TO THANK THE CITY TEAM THAT'S BEEN WORKING ON THIS FOR THE BETTER PART OF A YEAR.

THEY'VE BEEN INCREDIBLY THOUGHTFUL IN THEIR APPROACH AND AGAIN FOCUSED ON THE SPIRIT OF CONTINUOUS IMPROVEMENT.

THAT SAID, THERE IS ONE INDIVIDUAL I REALLY WANT TO GIVE A SPECIAL SHOUT OUT TO AND THAT'S CRADDOCK STOPES.

CRADDOCK HAS BEEN A TRULY THE LABORING ORE OF THIS PROJECT OVER THE LAST YEAR.

AND CRADDOCK, I REALLY APPRECIATE ALL YOUR EFFORTS IN THIS.

AND OF COURSE, I'D BE REMISS IF I DIDN'T MENTION THAT THE AWESOME PRESENTATION AND TRYING TO FIGURE OUT HOW BEST TO TELL THE STORY.

OBVIOUSLY, THE TELLTALE SIGNS ARE ALL THERE FROM ARE NONE OTHER THAN TINA RAY.

SO THANK YOU SO MUCH, TINA.

STAFF ARE AVAILABLE TO ANSWER ANY QUESTIONS YOU MAY HAVE.

DO WE HAVE SPEAKERS? THERE ARE NO SPEAKERS.

OKAY. QUESTION. I'M GOING TO START THE QUESTIONS.

JUST SO I UNDERSTAND THIS IN A IN A DIFFERENT LIGHT.

FIRST OF ALL, THIS ISN'T AFFECTING ENTERPRISE PROJECTS, WHICH ARE SEWAGE AND WATER AND THINGS LIKE THAT.

IS THAT RIGHT? CORRECT.

AND IT'S NOT GOING TO AFFECT PROJECTS THAT MONEY IS DEDICATED TO, SAY LIKE A NEW CITY HALL.

IT WON'T AFFECT THAT OR DOES IT.

THAT'S THAT'S CORRECT. SO WHAT IT WOULD AFFECT OR IMPACT THOUGH, ARE THOSE PROJECTS THAT LET'S SAY WE HAVE AGAIN, 200 MONROE POOL. SO AT THIS POINT, WE'RE NOT READY FOR THE FUNDING ASSOCIATED WITH THAT BECAUSE WE'RE NOT READY FOR CONSTRUCTION.

SO AGAIN, THOSE FUNDS WOULD BE BASICALLY IN THE MAIN ACCOUNT.

AND AND WE'D BE MOVING FORWARD ONLY ON THOSE PROJECTS THAT BASICALLY ARE SHOVEL READY.

SO THE MONEY WILL REMAIN IN A BANK ACCOUNT, ESSENTIALLY.

AND RATHER THAN DEDICATED TO DEDICATING THE MONEY INDIVIDUALLY TO EACH PROJECT, IT'LL STAY IN ONE LARGE ACCOUNT UNTIL THE MONEY IS NEEDED THEN WE'LL KNOW A BETTER IDEA OF HOW MUCH THAT PROJECT IS GOING TO COST, AND THAT MONEY WILL THEN COME OUT OF THIS BANK AND THEN GO INTO THAT PROJECT.

IS THAT ACCURATE? THANK YOU VERY MUCH. QUESTIONS FROM COUNCIL.

MISS BHAT-PATEL, I THINK I MIGHT BE ASKING THE SAME QUESTION DIFFERENTLY, SO I APPRECIATE YOU ASKING IT.

SO MY QUESTION HAD BEEN ASSUMING THAT THERE ARE PROJECTIONS ON POTENTIAL COSTS.

THOSE WILL THEN THOSE WILL BE FACTORED INTO THE BUDGET, BUT WE'RE NOT GOING TO INCLUDE THEM BECAUSE WE WON'T BE SPENDING THEM.

OKAY. JUST CONFIRMING.

GREAT THANKS, MISS ACOSTA.

THANK YOU. I'M TRYING TO THINK OF ALL OF THE PROS AND CONS TO BOTH THE WAY WE HAVE BEEN DOING IT AND THE WAY THAT WE'RE DOING IT NOW, AND I'M JUST WONDERING IF WE ARE LIKE, I JUST WANT TO MAKE SURE THAT WE'RE EARMARKING THE FUNDING, BUT IT SOUNDS LIKE WE'RE NOT, BECAUSE THAT'S THE WAY THAT WE USED TO.

BUT THEN I SAW THE BUCKETS.

SO WE ARE EARMARKING THE FUNDING.

WHAT I'M WORRIED ABOUT IS IF WE'RE COMPLETING, SAY, TWO OF FIVE PHASES AND THOSE ARE FUNDED AND THEN OUR WE'RE BUSY WITH OTHER THINGS OR THERE'S AN EMERGENCY AND ALL OF OUR MONEY IS GOING TO OTHER THINGS.

SO THEN THE PROJECT DOESN'T GET COMPLETED.

LIKE ARE WE GOING TO RUN OUT? IS IT SO MUCH OF A PAY AS YOU GO THAT WE MAY RUN OUT AND NOT COMPLETE A PROJECT AND LEAVE IT HALFWAY DONE, BECAUSE I HAVE SEEN THAT IN CITIES BEFORE.

TO THE SHORT ANSWER IS NO, WE'RE NOT GOING TO.

SO AND MAYBE WHAT WE CAN DO, IF I COULD HAVE ZACH TALK A LITTLE BIT BECAUSE WHAT WE'RE STILL GOING TO BE DOING IS WE'RE GOING TO BE PUTTING FUNDS ASIDE EVERY SINGLE YEAR FOR THAT CONSTRUCTION FUND. AND ACTUALLY, I'LL, I'LL LET ZACH MORE ARTFULLY TELL IT THAN I CAN.

ZACH. YES, THANK YOU, SIR, AND THANK YOU, COUNCIL MEMBER ACOSTA FOR THE QUESTION.

LIKE THE CITY MANAGER MENTIONED, WE ARE SWITCHING THE APPROACH TO A FIVE YEAR FOCUS, RIGHT? CORRELATING WITH THE CITY'S FIVE YEAR STRATEGIC PLAN.

YOUR QUESTION REGARDING RESOURCE AVAILABILITY, PARTICULARLY IN THE OUT YEARS, AND ENSURING THAT WE DO HAVE SUFFICIENT FUNDING TO FUND THOSE PROJECTS THAT IS STILL A VERY IMPORTANT ASPECT OF THE CAPITAL IMPROVEMENT PROGRAM, AND THAT IS WHY WE ARE GOING TO CONTINUE TO HAVE A 15 YEAR FUNDING SCHEDULE AS PART OF THE DOCUMENT.

AND IT WILL INCLUDE CONSTRUCTION ESTIMATES.

HOWEVER IN TERMS OF OF THE FOCAL POINT OF THE CAPITAL IMPROVEMENT PROGRAM, IT REALLY WILL BE MORE CLOSELY TIED TO THE FIVE YEAR TIME HORIZON.

IN TERMS OF, OF WHEN APPROPRIATIONS ARE BEING REQUESTED.

THERE REALLY IS NOT A WHOLE LOT THAT IS CHANGING IN THE MOST IMMEDIATE UPCOMING FISCAL YEAR, OTHER THAN REMOVING ANY, ANY

[01:05:04]

I HOPE THAT ADDRESSES YOUR QUESTION, BUT BUT IN SHORT, IN SUMMARY WE ARE GOING TO STILL CONTINUE TO BE TRANSPARENT AND PLAN ACCORDINGLY TO ENSURE THAT OVER THE 15 YEAR PERIOD, WE HAVE IN OUR PLANNING TO HAVE SUFFICIENT RESOURCES TO FUND ALL THE PROJECTS WITHIN THE CITY.

OKAY, SO MAYBE I CAN REPHRASE THE QUESTION A LITTLE DIFFERENTLY.

IF WE HAVE A LONG TERM PROJECT AND WE ARE TAKING IT IN PHASES AND ONLY FUNDING THE PHASES, HOW DO WE KNOW THAT WE'VE GOT ENOUGH MONEY TO FINISH THE PROJECT? THE SO THE FIVE YEAR CAPITAL IMPROVEMENT PROGRAM WILL HAVE THOSE INDIVIDUAL PHASES.

THERE WILL BE CONSTRUCTION ESTIMATES THAT WILL STILL BE TRACKED AND INCLUDED ALSO WITHIN THE 15 YEAR FUNDING SCHEDULE.

AND WE WILL BE REPORTING THOSE FUTURE CONSTRUCTION ESTIMATES BY FUNDING SOURCE.

AND WE WILL BE ABLE TO DETERMINE WHETHER OR NOT THAT PARTICULAR FUNDING SOURCE WILL HAVE SUFFICIENT FUNDS TO FUND THOSE CONSTRUCTION ESTIMATES IN THE FUTURE.

OKAY. THANK YOU.

MISS BURKHOLDER.

THANK YOU MAYOR. EXCUSE ME, ARE THERE OTHER CITIES THAT DO THIS TYPE OF APPROACH? YES THERE ARE, THERE ARE CITIES.

I DON'T HAVE ANY ANY GREAT EXAMPLES OFF THE TOP OF MY HEAD.

BUT YES, THIS IS THIS IS NOT AN UNCOMMON APPROACH FOR CITIES TO ADOPT, WHEREBY THEY FOCUS ON PROJECT PHASES AND BRING BACK CONSTRUCTION, APPROPRIATION REQUESTS FOR CONSTRUCTION AT A LATER DATE WHEN THE PROJECT BECOMES MORE, MORE DUE OR READY FOR THAT PHASE.

OKAY. CAN YOU PROVIDE ME WITH A REAL WORLD EXAMPLE SCENARIO OF WHAT THIS LOOKS LIKE IN IN PRACTICALITY? SURE. SO IF LOOKING AT ONE OF OUR CAPITAL PROJECT FUNDS, LET'S SAY THE GENERAL CAPITAL CONSTRUCTION FUND, THAT IS A FUNDING SOURCE THAT RECEIVES FUNDING FROM THE GENERAL FUND IN THIS YEAR'S IN FISCAL YEAR 24-25, AND THE PRELIMINARY BUDGET WILL BE GOING OVER A NUMBER OF NEW PROJECTS THAT ARE RECOMMENDED FOR CITY COUNCIL CONSIDERATION.

AND IN THAT FIRST YEAR, THERE WILL ONLY BE A REQUEST FOR APPROPRIATIONS FOR FEASIBILITY OR FOR PRELIMINARY DESIGN OR FINAL DESIGN.

THE CONSTRUCTION APPROPRIATIONS WILL NOT BE REQUESTED FOR THAT PARTICULAR PROJECT, IT WILL ONLY BE WHEN FINAL DESIGN IS BROUGHT BEFORE CITY COUNCIL FOR APPROVAL, THAT ALSO THE REQUEST FOR THE NECESSARY CONSTRUCTION APPROPRIATIONS WILL BE REQUESTED OF CITY COUNCIL AS WELL. EXCUSE ME.

I TOO WAS GOING TO ASK ABOUT THE MONROE STREET POOL ON THIS, BUT I THINK IT WOULD BE EVEN BETTER I REMEMBER WHEN THE TAMARACK.

EXCUSE ME. TAMARACK AND CARLSBAD BOULEVARD ROUNDABOUT WAS APPROVED, AND THERE WAS LANGUAGE IN THAT WE SAID YES TO THAT, BUT ONLY IF THE ROUNDABOUT SOUTH OF THAT ARE EFFECTIVE AND WORK EFFECTIVELY AND AND BECAUSE THOSE ARE GOING TO BE PLACED PRIOR TO TAMARACK.

SO IN A REAL LIFE EXAMPLE, WE'VE GONE THROUGH THE DESIGN PHASE AND ALL OF THAT.

WE'RE READY. WE GOT A DITCH AND WE'RE READY TO OR A SHOVEL AND WE'RE READY TO DIG.

RIGHT. SO THEY PUT IN THE FIRST SOUTHERNMOST ROUNDABOUT IF IT'S A DISASTER WE'RE NOT GOING TO PUT ANY MORE MONEY TOWARD IT.

BUT THEN THE NEXT ONE NORTH OF IT, THIS, THIS COUNCIL COULD SAY, ACTUALLY, NO, WE DID THAT AND IT DIDN'T WORK.

WE DON'T WANT TO DO ANY MORE OR WHATEVER.

THERE COULD BE A VOTE. WE COULD CHANGE OUR MIND ESSENTIALLY.

SO OKAY, I SEE SHE'S SHAKING HER HEAD.

SHE SAID, OKAY.

SO I'M JUST WONDERING HOW THIS TYPE OF APPROACH WOULDN'T HAVE EACH OF US VYING FOR THE THINGS THAT WE NEED DONE IN OUR OWN DISTRICTS, AND HOW THOSE ARE GOING TO BE PRIORITIZED WITHOUT SOME SORT OF PROBLEM OF, YOU KNOW, I MEAN, MY DISTRICT IS THE OLDEST PART OF CARLSBAD WE HAVE A LOT OF NEED.

I'M JUST TRYING TO FIGURE OUT HOW THIS LOOKS IN REALITY.

COUNCIL MEMBER AND IT'S TIED TO YOUR FIVE YEAR STRATEGIC PLAN.

SO COUNCIL APPROVES YOUR FIVE YEAR PLAN I BELIEVE THERE WERE 53.

YEAH. HOW MANY? 53. SO THERE WERE 53 PROJECTS.

SO WE WANT TO MAKE SURE THAT THE FUNDING THEN IS TIED TO THOSE 53 PROJECTS.

SO THAT'S WHERE WE'RE MAKING THAT'S THAT JUST IN TIME WE WANT TO MAKE SURE THAT WE'RE PROGRESSING ON COUNCIL'S STATED PRIORITIES OF THE 200

[01:10:05]

SO I HEAR WHAT YOU'RE SAYING.

THANK YOU FOR THAT AND WHAT I THINK YOU SAID THE AVERAGE TIME FOR A COMPLETED PROJECT WAS FIVE YEARS.

IT COULD BE ANYWHERE FROM 5 TO 10, DEPENDING ON THE COMPLEXITY OF THE PROJECT.

YEAH. AND THEN I HEARD THE THAT YOU MENTIONED TRANSPARENCY A COUPLE TIMES.

CAN YOU PLEASE EXPLAIN HOW THIS IS A MORE TRANSPARENT APPROACH? SURE. AND BECAUSE THIS IS GOING TO GIVE US OPPORTUNITIES TO CHECK IN MORE FREQUENTLY WITH COUNCIL.

SO FIRST, WHEN WE END UP GOING THE BUDGET PROCESS AND THAT THIS IS THE PLAN, BUT THEN WHEN WE'RE ACTUALLY ALLOCATING THE FUNDING FOR IT, FIRST WILL COME TO COUNCIL, WHERE IT'S THE DESIGN PHASE.

COUNCIL WILL ALLOCATE THE FUNDS ASSOCIATED WITH THE DESIGN PHASE.

IF THERE'S A SECONDARY PHASE, THEN COUNCIL WILL ALLOCATE THE FUNDING FOR THAT PHASE.

AND THEN FINALLY AND ONLY, YOU KNOW, WHEN WE'VE BASICALLY MET ALL THOSE COSTS, WILL WE THEN ASK FOR THE CONSTRUCTION MONIES.

BUT RIGHT NOW WE'LL PARK MONEY, WE PARK MONEY, WE PARK MONEY.

AND SO WE'VE GOT ALL THESE KIND OF POCKETS OF MONEY FOR PROJECTS THAT MAYBE HAVE BEEN IN THE PIPELINE.

I WHAT'S THE OLDEST PIPELINE? THE I5 78.

NO, I'M JUST KIDDING. [LAUGHTER] BUT CRADDOCK, CAN YOU RECALL, DIDN'T YOU HAVE ONE FROM LIKE 1999? FOR THE ORION CENTER FOR SOME TIME.

AND THE SCOPE AND PLANS FOR THE ORION CENTER CONTINUE TO EVOLVE AS THE CITY'S NEEDS EVOLVE.

AND SO WHAT HAPPENS IS WE SET AN ESTIMATE AT A POINT IN TIME WHEN THE NEED IS FIRST ESTABLISHED, BUT THEN IT DOESN'T ACTUALLY GET BUILT FOR MANY YEARS. AND SO MANY THINGS CHANGE BETWEEN THE TIME THAT WE DETERMINE THE NEED AND THE TIME THAT WE'RE READY TO BREAK GROUND.

AND SO THIS APPROACH ALLOWS US TO GIVE COUNCIL A MUCH MORE ACCURATE ESTIMATE OF WHAT THE CONSTRUCTION COST IS ACTUALLY GOING TO BE.

AND TO THE CITY MANAGER'S POINT, THE MORE FREQUENT CHECK INS WILL GIVE BOTH THE PUBLIC AND COUNCIL MORE OPPORTUNITY TO STAY ON TOP OF THE PROJECT AND KIND OF FOLLOW IT ALONG AS IT MOVES ALONG, AND MAKE SURE THAT WE'RE AUTHORIZING THE APPROPRIATE AMOUNT OF FUNDING AT EVERY STAGE.

MAYOR, YOU'LL REMEMBER WITH ARGONAUT, I MEAN, THAT PROJECT TOOK 15 YEARS TO COMPLETE AND CONTINUE BECAUSE, YOU KNOW, THE WE HAD AN ESTIMATE, RIGHT? AND THEN OVER TIME, ESTIMATES CHANGE.

AND, YOU KNOW, AT SOME POINT, THE FINAL CONSTRUCTION COST WAS VERY DIFFERENT FROM WHAT WE HAD ORIGINALLY ESTIMATED.

I UNDERSTAND THAT. THANK YOU.

THE HOW HOW DOES THIS OR DOES THIS IMPACT ANY OF OUR COMMISSIONS IN, IN A WAY THAT THEY'RE GOING TO BE DOING THEIR WORK? I HEAR YOU SAYING YOU'RE GOING TO BE COMING BACK TO US MORE FREQUENTLY.

SO WOULD IT? YES, MA'AM. THANK YOU FOR THAT QUESTION.

PAZ GOMEZ, DEPUTY CITY MANAGER FOR PUBLIC WORKS.

RIGHT NOW, FOR A LOT OF OUR TRANSPORTATION PROJECTS, WE GO BEFORE THE TRAFFIC SAFETY AND MOBILITY COMMISSION.

WHAT WE'VE STARTED DOING IS PRESENTING PRELIMINARY CONCEPTUAL DESIGNS AT THE BEGINNING TO GET PUBLIC INPUT TO ALSO HEAR FROM THE COMMISSIONERS AND, AND SO THROUGH THAT, THEN AS WE PROGRESS TOWARDS FINAL DESIGN IT, WE GET SOME MORE INPUT.

AND SO BEFORE WE COME TO BRING IT TO CITY COUNCIL, WE RUN IT BY THEM ONE LAST TIME AND THEN GET THEIR SUPPORT.

SO THAT ISN'T GOING TO CHANGE AS A MATTER OF THIS PROCESS.

GREAT THANK YOU. AND THEN I KNOW AT SANDAG WE HAVE A CONTRACTS APPROVED AND THEY COME BACK WITH CHANGE ORDERS ALL THE TIME IN THE MILLIONS OF DOLLARS.

THIS IS NOT LIKE A COUPLE HUNDRED DOLLARS WE'RE TALKING ABOUT.

IS HAS THERE BEEN A PRACTICE IN CARLSBAD THAT WE'RE SEEING THAT HAPPEN WHERE WE'RE AWARDING CONTRACTS FOR THINGS, AND THEN THE COMPANIES ARE COMING BACK TO US AND SAY, ACTUALLY, NO, WE NEED THIS MUCH MORE.

AND IF SO, I GUESS I'M THE BOTTOM OF THE QUESTION AT THE BASE OF IT IS, WHY ARE WE DOING THIS? AND I HEARD THE ANSWER EARLIER, BUT IS THERE A PRACTICE IN CARLSBAD THAT WE'VE SEEN THESE CONTRACTORS AWARDING AND SAYING THIS IS WHAT IT'S GOING TO COST, AND THEN COMING BACK FOR SO MUCH MORE MONEY? NO, MA'AM.

SO WHEN WE MOVE FORWARD WITH CONSTRUCTION SOMETIMES THERE ARE CHANGE ORDERS BECAUSE WE, AS THE CITY WISH TO CHANGE A LITTLE BIT HERE AND THERE.

SO THERE ARE CHANGE ORDERS THAT WE DO SEE IN CONSTRUCTION.

BUT I THINK WHAT I HEARD YOU SAY WAS WITH REGARDS TO SANDAG AND THE AGREEMENTS AND THEN KEEP, KEEP ESCALATING.

THE WAY THAT WE DO IT HERE IS WE ACTUALLY HAVE MASTER AGREEMENTS AND WE'LL BE COMING FORTH LATER THIS YEAR FOR A WHOLE BUNCH OF THEM FOR DIFFERENT TYPES OF DISCIPLINES

[01:15:06]

SOME ARE ENVIRONMENTAL AND THINGS ALONG THOSE LINES.

AND SO WHAT WE DO IS WITHIN THE CITY MANAGER'S AUTHORITY IS WE WOULD ISSUE WHATEVER TASK ORDER IS NEEDED.

IF IT IS SOMETHING THAT'S NOT WITHIN HIS AUTHORITY, THEN WE WILL COME FORWARD AND ASK FOR CITY COUNCIL'S AUTHORIZATION.

SO THAT PRACTICE KEEPS US ON TASK WITH REGARDS TO MAKING SURE THAT WE'RE NOT DOING SCOPE CREEP.

AND, YOU KNOW, COMING BACK OVER AND OVER AND OVER AGAIN.

GREAT. THANK YOU. I DON'T THINK I HAVE ANY MORE QUESTIONS RIGHT NOW.

MISS LUNA.

ZACK TO THE SLIDE WHERE YOU SHOW WHEN THE CITY COUNCIL ORIGINALLY WE HAVE OUR GREAT IDEAS AND SAY, WE WANT YOU TO DO THIS.

YOU KNOW, IT'S LIKE I'M TALKING ABOUT.

AND THEN IT SHOWS THE DIFFERENT STAGES.

CHRISTINA SAW HIM WITH THE GAVEL WHERE WE.

SO I GUESS WHILE THEY'RE GETTING THAT UP ZACK SO THE MONEY THAT'S BEEN PARKED OR SCOTT FOR A WHILE THAT WE'VE BEEN SITTING THERE, ARE YOU POSSIBLY ENTERTAINING ANOTHER INVESTMENT PORTFOLIO THAT MIGHT GARNER US A LITTLE BIT MORE? YOU KNOW, I'M ALWAYS LOOKING AT THE THE DOLLARS.

THANK YOU. COUNCIL MEMBER, FOR THE QUESTION.

SO REGARDLESS OF WHETHER THE DOLLARS HAVE BEEN APPROPRIATED OR IF THEY'RE JUST SITTING IN FUND BALANCE THE CASH IN THOSE FUNDING SOURCES IS BEING ACTIVELY INVESTED.

EXCUSE ME. WITHIN THE CITY'S GENERAL INVESTMENT PORTFOLIO.

THOSE DOLLARS ARE INCLUDED IN THE MONTHLY TREASURER'S REPORT THAT'S BROUGHT TO CITY COUNCIL.

I JUST DIDN'T KNOW IF WE WOULD HAVE, LIKE, ANOTHER BUCKET THAT WE COULD BECAUSE THOSE MONIES LITERALLY ARE PARKED SOMETIMES FOR YEARS, AND SOMETIMES YOU CAN GET A BETTER RATE OF RETURN.

SO I THINK THIS IS THIS IS REALLY A GOOD MOVE IN LIGHT THAT OUR CITY IS APPROACHING BUILD OUT AND IN THE PAST, I THINK WE ALWAYS HAD A GREAT CASH FLOW.

WE ALWAYS HAD A GREAT INCOME.

AND SO WE COULD SET ASIDE THESE BIG DOLLAR AMOUNTS AND LET THEM SIT THERE AND SIT THERE.

WELL, THAT'S NOT THE CASE ANYMORE.

AND I THINK WITH THIS AFFORDS US THIS FLEXIBILITY SO THAT WE HAVE THE IDEAS, WE HAVE THE BIG LIST AS OUR CITY MANAGER SAID, THEY DO THE SCOPING AND THE PLANNING.

THEY COME BACK WITH THE PRELIMINARY DESIGN IT COULD BE A COUPLE OF YEARS, A YEAR AND A HALF.

IN THE MEANTIME, THE COLLECTION MAY BE STATE LAW, FEDERAL LAW, FUNDING OPPORTUNITIES.

CONSTITUENCIES ARE SAYING, YOU KNOW, WE REALLY WANTED TO DO THAT AND NOW WE DON'T WANT TO DO IT ANYMORE.

AND YOU DON'T THEN MOVE TO FINAL DESIGN AND CONSTRUCTION DESIGN BECAUSE YOU'RE CATCHING IT.

WHY PUT BAD MONEY AFTER OTHERS? WE CAN PIVOT. WE CAN TAKE THAT MONEY AND THEN MOVE IT AROUND TO ANOTHER PROJECT.

AND SOMETIMES THESE PROJECTS GO ON AND ON, AND THEY GET TOO COST PROHIBITIVE.

AND THEN WE'RE STUCK HERE HOLDING THE BAG BECAUSE WE MADE THIS COMMITMENT.

AND THAT'S HOW OUR WHOLE BUDGET WAS PREDICATED ON.

AND THIS WE ACTUALLY GET TO SAY, YOU KNOW, YOU HAVE TWO KIDS, THEY GO TO COLLEGE, AND THE FIRST ONE'S LUCKY AND COLLEGE ISN'T, YOU KNOW, THE RATES HAVEN'T GONE UP.

SO THEY GET TO GO TO TO DARTMOUTH.

AND THEN THE SECOND ONE COMES AND YOU'RE LIKE THE MONEY THAT I HAD SET ASIDE FOR YOU, FOR DARTMOUTH, I'M SORRY, IS GOING TO GET YOU TWO YEARS AT A JC AND THEN TWO YEARS SOMEWHERE ELSE.

SO WE'RE NOT SELLING THE HOUSE TO HAVE SECOND CHILD GO TO DARTMOUTH.

SO THIS GIVES US THAT PIVOT AMOUNT, BUT IT STILL STAYS, KEEPS US WITHIN OUR FIVE YEAR PLANS THAT WE DO WANT TO WANT TO KEEP.

SO I GUESS MY QUESTION AFTER ALL THAT IS PROJECTS THAT CURRENTLY WERE IN PRELIMINARY DESIGN PHASE WILL THEN THIS FALL UNDER THIS TYPE OF PROGRAM.

YES, MA'AM. SO SO THOSE THAT ARE UNDER PRELIMINARY DESIGN WILL BE PROGRESSING TO FINAL DESIGN.

SO WITHIN THE BUDGET IN THE NEXT FIVE YEARS, YOU WILL SEE WHEN IT IS THAT'S PROJECTED TO CONTINUE.

WHAT YOU WON'T SEE IS THE CONSTRUCTION AMOUNT.

IT WILL BE PART OF THE 15 YEAR FORECAST THAT IS STILL VISIBLE IN THE FUNDING SCHEDULE, AS [INAUDIBLE] HAD MENTIONED.

BUT IT WON'T BE PART OF THE BUDGET.

WE WILL BE COMING BACK AS YOU'RE AWARE, WE CONSTANTLY COME BACK FOR APPROVAL OF PLANS AND SPECIFICATIONS AND AUTHORIZATION TO BID.

SO WHAT WE WILL DO NOW IS IN ADDITION TO THAT, WE'LL BE REQUESTING APPROPRIATION OF CONSTRUCTION.

AT THAT POINT IN TIME.

AS OUR CITIES MATURED AND WE ARE APPROACHING BUILD OUT, YOU KNOW, WE'RE LOOKING AT THIS HAPPENING AS I THINK OUR MAYOR HAD BEEN IN A FEW MEETINGS WITH THEM.

HE'S LIKE, HE'S NEVER SEEN THIS BEFORE AND I THINK THIS IS A GOOD APPROACH FOR US TO TAKE A LOOK.

WE'RE USED TO COMMITTING TO WAY OUT BECAUSE WE WERE ALWAYS GETTING A VERY HEALTHY, HEALTHY REVENUE SOURCES.

AND YOU KNOW, WHO KNOWS IF IT PEAKS BACK UP AGAIN, YOU KNOW, MAYBE WE COULD GO ANOTHER WAY.

BUT I DON'T THINK I DON'T REALLY SEE ANY HARM IN THIS.

[01:20:03]

MISS BURKHOLDER.

SORRY. THANKS.

JUST AS FAR AS IMPLEMENTING A NEW WAY OF LOOKING AT THINGS, THE.

JUST IN TIME.

IF THAT'S WHAT YOU WANT TO CALL IT, JUST IN TIME APPROACH.

ARE THERE IS THERE A REVIEW PERIOD? HOW IS THIS GOING? HOW ARE WE DOING? AND THEN IF IT DOESN'T GO WELL, WHICH I HOPE IT DOES, I'M JUST SAYING IF IT DOESN'T GO WELL, THEN WE CAN CHANGE THINGS AGAIN TO MAKE IT MAKE SENSE. IF IT DOESN'T GO WELL, YOU'LL CERTAINLY HEAR ABOUT IT.

SO IT'S WE'VE LOOKED AT THIS FOR THE LAST YEAR.

THIS IS SOMETHING WE'VE LOOKED AT OTHER AGENCIES, WHAT OTHER AGENCIES ARE DOING.

I WILL SAY THAT JUST ABOUT EVERYBODY HAS KIND OF A HOME RULE APPROACH.

EVERYBODY DOES IT A LITTLE DIFFERENTLY.

EVEN CARLSBAD FOR THE LAST FOR AS LONG AS CARLSBAD HAS BEEN DOING IT.

SO WE HAVE MADE SOME LITTLE TWEAKS HERE AND THERE.

BUT IN THE EVENT TO DIRECTLY ANSWER YOUR QUESTION, IN THE EVENT THAT IT'S NOT WORKING AND WE'LL TRY A DIFFERENT APPROACH, OKAY.

THANK YOU. ARE WE ON COMMENTS NOW OR ARE WE STILL ON QUESTION JUST BRIEFLY WHEN YOU CAN HEAR THAT THERE'S A LITTLE BIT OF CONFUSION AMONGST THE COUNCIL? I THINK I UNDERSTAND IT, BUT I DON'T THINK I UNDERSTAND IT WELL ENOUGH THAT I CAN GO OUT TO THE PUBLIC AND ANSWER SPECIFIC QUESTIONS.

SO WHAT I WOULD REQUEST I THE WAY I UNDERSTAND IT, IT'S A GOOD IDEA, BUT WHEN I TRY TO EXPLAIN IT TO THE PUBLIC, I THINK I'M GOING TO BE DOING A LOT OF HEMS AND HAWS.

SO IS THERE A WAY THAT WE CAN PUT THIS TOGETHER TO WHERE IT'S A LITTLE SIMPLER FOR US TO EXPLAIN TO THE PUBLIC, SO IT'S EASY FOR THEM TO UNDERSTAND.

THAT WOULD BE MY REQUEST.

YEAH. AND I ALSO YES.

SO WE'LL FIGURE OUT A BETTER APPROACH TO TAKE.

AND THEN ONE OF THE OTHER THINGS THAT WE'LL BE DOING, WE ARE DOING A WORKSHOP.

SO THERE'LL BE A PRESENTATION FOR CITY COUNCIL OF OUR BUDGET ON THE 21ST, AND THEN WE'LL ALSO BE DOING A WORKSHOP ON THE 23RD, AND WE'LL COVER THIS AS WELL.

THANK YOU. COMMENTS.

MISS BURKHOLDER, SHOULD I TAKE THE MIC FROM HER? I'M JUST KIDDING. I JUST I LOVE THAT WE ARE INNOVATIVE AND LOOKING TOWARD THE FUTURE IN A LOT OF WAYS, AND I'M NEVER SCARED TO TRY NEW THINGS, BUT I DO LIKE TO HAVE MEASURES AND BALANCES, CHECKS AND BALANCES IN PLACE ON THINGS LIKE THIS.

SO I CAN I APPRECIATE THE PRESENTATION TONIGHT, MR. CHADWICK AND ALL OF YOUR EFFORTS THAT THIS HAS TAKEN TO GET TO WHERE WE ARE FOR THIS, FOR THIS NEW APPROACH.

THANK YOU. MISS LUNA ANY COMMENTS? YOU TOLD HER SHE DIDN'T GET ANY.

OKAY. GOT IT.

MISS ACOSTA, I GET IT, I GET IT.

I DON'T NEED TO ASK ADDITIONAL COMMENTS.

MISS ACOSTA, PLEASE.

THANK YOU. THANKS FOR THE PRESENTATION AND THANKS FOR THE INFORMATION.

I DO THINK THAT WE WOULD IT WOULD BE HELPFUL TO HAVE SOME KIND OF EXPLAINER, AN EASY EXPLAINER.

SO I APPRECIATE THE MAYOR'S REQUEST FOR THAT AND SUPPORT THAT SO THAT WE CAN TALK TO PEOPLE ABOUT IT BECAUSE THEY'RE GOING TO SAY, HOW ARE WE CHANGING? AND IF IT AIN'T BROKE, WHY ARE WE TRYING TO FIX SOMETHING THAT'S NOT BROKEN? SO, YOU KNOW, TO SAY WE'RE JUST CONTINUOUSLY IMPROVING AND THIS IS AN APPROACH THAT WE'RE TAKING THAT'S GOING TO MAKE SURE THAT WE STAY ON TOP.

I THINK THE THE KEY THING THAT I WOULD, I WOULD EMPHASIZE IS STAYING ON TOP OF FLUCTUATING COSTS IN THE MARKET.

AND THAT'S WHAT I'VE BEEN HEARING ALL YEAR.

MORE THAN A YEAR IS REALLY JUST PRICES FLUCTUATING AND NOT BEING IN LINE WITH THE ESTIMATES THAT OUR STAFF HAVE GIVEN.

SO I THINK THIS WILL REALLY HELP US ADDRESS THAT.

AND MAYBE THAT CAN BE IN THE EXPLAINER IF THAT'S THE ROUTE.

MISS BHAT-PATEL. JUST THANK YOU AND EVERYTHING ELSE HAS BEEN SAID.

BUT THANK YOU SO MUCH FOR BRINGING IT FORWARD.

REALLY APPRECIATE IT.

THANK YOU FOR THINKING THIS WAY.

TRADITIONALLY, WE DO LOOK 15 YEARS AHEAD BUT IF WE WERE GOING TO BUILD A WIDGET FACTORY, AND WE PLANNED THIS SEVEN YEARS AGO, PRE-PANDEMIC, THAT OUR BUDGET WOULD BE COMPLETELY SHOT BECAUSE OF SUPPLY CHAIN AND INFLATION AND, AND LABOR ISSUES.

SO I THINK LOOKING AT IT MORE OFTEN IS GOING TO BE A BENEFIT.

BUT I'M JUST GOING TO BEG THAT YOU HELP ME SIMPLIFY IT WHEN I TRY TO TO EXPLAIN IT TO THE PUBLIC.

SO THANK YOU SO MUCH, AND THANK YOU FOR THINKING AHEAD AND TRYING TO BE MORE TRANSPARENT AND TO MORE OFTEN CHECK INS.

SO WE'RE NOT CAUGHT OFF GUARD.

AND THIS IS JUST A PRESENTATION.

NO VOTE NECESSARY. THANK YOU.

THAT BRINGS US TO THE END OF THE AGENDA.

[COUNCIL COMMENTARY AND REQUESTS FOR CONSIDERATION OF MATTERS]

I JUST THAT WE HAVE SANDAG ON FRIDAY.

I'LL BE SITTING ON THE EXECUTIVE COMMITTEE AS WELL AS THE REGULAR BOARD MEETING.

9:00 IS THE EXECUTIVE 10:00 IS THE REGULAR BOARD MEETING? MISS ACOSTA, THANK YOU.

THIS MORNING, WE HAD THE CITY SCHOOL COMMITTEE THAT THE MAYOR PRO TEM AND I SIT ON MEET RIGHT HERE IN THESE CHAMBERS WITH ALL FOUR SCHOOL DISTRICTS THAT OVERLAP WITH OUR CITY

[01:25:01]

SO I'M SO PLEASED THAT WE HAD THAT.

THERE ARE SOME OTHER THINGS GOING ON.

WE'VE GOT LEAGUE OF CALIFORNIA CITY, SAN DIEGO COUNTY DIVISION MEETING ON MONDAY.

I HEARD THE CALIFORNIA PROFESSIONAL FIREFIGHTERS, ALL THE FIREFIGHTERS ARE COMING TO CARLSBAD.

SO LOTS OF LOTS OF REALLY EXCITING THINGS HAPPENING OUT THERE IN THE COMMUNITY AND HAPPY TO BE A PART OF IT.

HAVE A GREAT WEEK. MISS BHAT-PATEL.

YES. THANK YOU.

A COUPLE OF THE MEETINGS THAT WERE MENTIONED WERE MEETINGS EITHER THAT I'M WILL BE ATTENDING OR HAVE ATTENDED SO THE CITY SCHOOLS IN LEAGUE OF CALIFORNIA CITIES I HAD THE NATIONAL LEAGUE OF CITIES, ASIAN PACIFIC ISLANDER ASSOCIATION OF MUNICIPAL OFFICIALS, BOARD OF DIRECTORS CALLED NCTDS EXECUTIVE COMMITTEE MET YESTERDAY AND WE HAVE ANOTHER ONE NEXT WEEK.

AND THEN I JUST WANTED TO MENTION HAPPY MOTHER'S DAY TO ALL THE MOMS FOR THIS UPCOMING SUNDAY.

THANKS. CITY MANAGER, CITY ATTORNEY.

[CITY ATTORNEY COMMENTS]

ON THURSDAY MORNING, I'LL BE HOSTING THE COASTAL CITIES DISCUSSION GROUP, AND THEN I WILL ALSO BE ABSENT FOR NEXT WEEK'S COUNCIL MEETING.

IN MY ABSENCE, SENIOR ASSISTANT CITY ATTORNEY ALLEGRA FOSS WILL BE AVAILABLE TO ASSIST YOU, AND SHE'LL BE STAFFING THE MEETING.

CITY CLERK. WE'RE ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.