May 21, 2024 City Council Meeting

[CALL TO ORDER]

[00:00:06]

I'M CALLING TONIGHT'S MEETING TO ORDER.

PLEASE TAKE ROLL. COUNCILMEMBER LUNA.

PRESENT. COUNCIL MEMBER BURKHOLDER.

PRESENT. COUNCIL MEMBER ACOSTA.

HERE. COUNCIL 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]

NEXT IS THE PLEDGE.

CITY ATTORNEY, WILL YOU PLEASE LEAD US? THANK YOU. PLACE YOUR RIGHT HAND OVER YOUR HEART.

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.

[PRESENTATIONS]

MISS BURKHOLDER, WILL YOU PLEASE.

YES. I AM PLEASED TO BE MAKING A PROCLAMATION FOR WATER SAFETY MONTH FOR MAY OF 2024.

I'D LIKE TO INVITE DREW FRANCIS, PARAMEDIC LIFEGUARD LIEUTENANT, UP TO THE PODIUM, AND I WILL GO AHEAD AND READ THE PROCLAMATION AND GIVE YOU AN OPPORTUNITY TO SAY A FEW WORDS.

WHEREAS MAY IS NATIONAL AQUATICS MONTH WITH A FOCUS ON WATER SAFETY.

AND WHEREAS SWIMMING AND AQUATIC RELATED ACTIVITIES PLAY A VITAL ROLE IN HELPING PEOPLE MAINTAIN GOOD PHYSICAL AND MENTAL HEALTH AND ENHANCE THE QUALITY OF LIFE FOR ALL PEOPLE.

AND WHEREAS IN SOUTHERN CALIFORNIA, DROWNING PREVENTION EDUCATION REQUIRES YEAR ROUND PUBLIC INFORMATION WITH AN EMPHASIS PLACED ON THE SUMMER MONTHS.

AND WHEREAS ADULT SUPERVISION AT ALL AQUATIC VENUES IS A CRITICAL SAFETY FACTOR IN PREVENTING CHILDREN FROM DROWNING.

AND WHEREAS THE CITY COUNCIL OF CARLSBAD RECOGNIZES THE VITAL ROLE THAT WATER SAFETY EDUCATION PLAYS IN PREVENTING WATER RELATED INJURIES AND IS DEDICATED TO INCREASING PUBLIC AWARENESS ABOUT POOL, OCEAN AND WATER SAFETY.

NOW, THEREFORE, I, COUNCIL MEMBER MELANIE BURKHOLDER, ON BEHALF OF THE MAYOR AND CITY COUNCIL, DO HEREBY PROCLAIM MAY 24TH AS WATER SAFETY MONTH IN THE CITY OF CARLSBAD. PLEASE.

THANK YOU. COUNCIL MEMBER BURKHOLDER THE REST OF THE COUNCIL MEMBERS, MR. MAYOR AND CITY MANAGER CHADWICK, I JUST WANT TO EXPRESS OUR GRATITUDE FROM THE FIRE DEPARTMENT SIDE FOR THE CONTINUED SUPPORT THAT WE RECEIVE TO PROVIDE HIGH QUALITY RESOURCES TO OUR LIFEGUARDS AND PROVIDE THE BEST LEVEL OF SERVICE, WE'RE ABLE TO RECRUIT THE TOP TALENT IN THE COUNTY IN A TIME WHERE LIFEGUARDS ARE WHERE PEOPLE ARE STRUGGLING TO STAFF.

WE CONTINUE TO ACQUIRE GREAT, QUALIFIED, EXPERIENCED LIFEGUARDS FAR BEYOND WHAT OTHER CITIES ARE ABLE TO ACQUIRE.

AND THAT'S JUST ELEVATING OUR LEVEL OF SERVICE.

THANK YOU FOR RECOGNIZING AND SUPPORTING ALL WATER SAFETY PROGRAMS. AND WE ALL REALIZE THAT CARLSBAD IS A YEAR ROUND TOURIST DESTINATION, AND PEOPLE ARE ABLE TO RECREATE IN ALL OF OUR BEAUTIFUL PARKS AND AQUATIC VENUES, POOLS, LAGOONS AND ALL THAT YEAR ROUND. AND WE'RE HERE FOR THEM AND KEEPING OUR PUBLIC SAFE.

WITH ME IS AREA RECREATION AREA MANAGER ASHLEY BENSON, WHO DOES ALL THE PROGRAMING FOR THE POOLS, WHICH THEY REALLY ARE PROVIDING THE FRONT LINE EDUCATION FOR ALL OF OUR YOUNG YOUTH AND CHILDREN, KEEPING THEM SAFE.

SO WHEN THEY FINALLY MAKE IT TO THE BEACH WITH US WE JUST HAVE TO WATCH THEM A LITTLE BIT LESS.

SO I'M GOING TO LET HER SAY A FEW WORDS.

GOOD EVENING.

I'M ASHLEY BENSON, RECREATION AREA MANAGER FOR THE PARKS AND REC DEPARTMENT.

THANK YOU TO OUR COLLEAGUES IN THE FIRE DEPARTMENT FOR ALLOWING US TO KIND OF TAG ALONG ON THIS WATER SAFETY MONTH IS VERY IMPORTANT TO US.

IT'S EVERYTHING WE DO EVERY SINGLE DAY.

SO JUST TO HIGHLIGHT MY TEAM A LITTLE BIT, OUR TEAM OFFERS OVER 650 SWIM CLASSES AT VARIOUS LEVELS EACH YEAR, REACHING ABOUT 2700 PARTICIPANTS.

WE ALSO TRAIN AND CERTIFY AROUND 60 NEW LIFEGUARDS AND SWIM INSTRUCTORS ANNUALLY, WHO EDUCATE AND SUPERVISE OUR SWIMMERS AND POOL PATRONS.

IN HONOR OF THIS MONTH, OUR STAFF IS DISTRIBUTING INTERACTIVE MATERIALS TO SWIM LESSON PARTICIPANTS TO FURTHER EDUCATE THE YOUTH ON WATER SAFETY.

BECAUSE WE BELIEVE THAT THROUGH EDUCATION, AWARENESS AND COLLABORATION, WE CAN ENSURE A SAFER AQUATIC EXPERIENCE FOR EVERYONE.

SO I SHARE THE SAME SENTIMENTS AS DREW, AND WE ARE GRATEFUL TO THE CITY FOR CONTINUING TO HIGHLIGHT THE IMPORTANCE OF WATER SAFETY AND FOR PROVIDING US THE RESOURCES NECESSARY TO CONTINUE TO DO SO. SO I THANK YOU.

PLEASE, PLEASE JOIN US RIGHT HERE FOR A QUICK PHOTO.

[PUBLIC REPORT OF ANY ACTION TAKEN IN CLOSED SESSION]

[00:06:39]

THIS AFTERNOON, THE CITY COUNCIL VOTED UNANIMOUSLY TO AUTHORIZE THE CITY ATTORNEY'S OFFICE TO FILE A CROSS COMPLAINT FOR INDEMNITY AND OTHER CAUSES OF ACTION AGAINST THE CO-DEFENDANTS IN THE CASE OF PRINZ VERSUS COLBY, DEL D REVOCABLE TRUST, ET AL.

THAT SUPERIOR COURT CASE NUMBER 37-2020 4-0019163-Q-PO- NC.

THANK YOU. NEXT IS PUBLIC COMMENT.

[PUBLIC COMMENT]

THE BROWN ACT AND THE CITY'S MEETING RULES ALLOW MEMBERS OF THE PUBLIC TO COMMENT ON ITEMS NOT ON THE AGENDA, AS LONG AS THE COMMENTS ARE REGARDING MATTERS WITHIN THE CITY COUNCIL'S SUBJECT MATTER JURISDICTION.

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 RECEIVED NON AGENDA PUBLIC COMMENTS FOR UP TO A TOTAL OF 15 MINUTES.

AT THE BEGINNING OF THE MEETING, THE 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 ANY NON-AGENDA ITEMS. WHEN MAKING 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 MAKE SURE THAT THE PEOPLE'S BUSINESS CAN BE CONDUCTED EFFICIENTLY, AND THAT THIS IS A CHAMBER WHERE ALL POINTS OF VIEW ARE WELCOMED AND RESPECTED.

WHEN THE CLERK CALLS YOUR NAME, YOU'LL BE ASKED TO COME UP TO THE PODIUM.

YOU'LL HAVE THREE MINUTES AT THE.

WHEN YOU HAVE 30S LEFT, THE PODIUM WILL TURN YELLOW, GIVING YOU A NOTICE THAT YOU'RE DOWN TO THE LAST 30S.

I'VE ASKED THE CLERK TO TURN OFF THE MICROPHONE AT THE CONCLUSION OF THE THREE MINUTES.

THAT WAY, EVERYBODY GETS EXACTLY THE SAME AMOUNT OF TIME TO SPEAK.

PLEASE CALL THE FIRST SPEAKER, MARY LUCID, FOLLOWED BY DIANA RICKER.

GOOD EVENING.

I AM SHOCKED, SHOCKED, I SAY TO HEAR THAT PARK AND REC HAS HAD ELDER ABUSE COMPLAINTS FILED AGAINST THREE OF THE EMPLOYEES.

IT'S UNBELIEVABLE TO ME THAT PEOPLE WHO WORK WITH SENIORS ARE NOT TRAINED.

I GRADUATED FROM THE CITIZENS ACADEMY AND YET A COUPLE YEARS AGO, WHEN THE ATTITUDE SHIFTED TO MONETIZE AND COLLECT MONEY AND DO AS LITTLE AS POSSIBLE.

ALL OF A SUDDEN I'M PUBLIC ENEMY NUMBER ONE.

WHAT'S WRONG WITH THE TRAINING?

[00:10:01]

I DON'T THINK I WALK AGGRESSIVELY, I'M LUCKY TO BE WALKING.

PERCEPTION IS IN THE EYE OF THE BEHOLDER.

SO WHAT IS THE REASON BEHIND THIS MONETIZING? TO PAY FOR THE HIGH SALARIES OF SOME PEOPLE FOR A CITY OF 170,000.

WHERE IS THE GOOD FAITH? IT'S REALLY INTERESTING THAT PEOPLE THINK I WALK AGGRESSIVELY.

I DON'T KNOW WHAT THAT LOOKS LIKE, AND I CAN ASSURE YOU THAT MY VOCAL CORDS ARE NOT OVER STRAINED FROM YELLING.

OF COURSE THERE'S STILL TIME, BUT I WANT YOU TO CONSIDER WHY SO LITTLE HAS BEEN DONE. WHEN CORI SCHUMACHER WARNED THE CITY ABOUT MONEY AND WHAT THE CITY NEEDS.

YOU HAVE A CITY MANAGER THAT'S VERY WELL PAID.

ARE YOU NOT LISTENING TO HIM? THE SAME OLD PROBLEMS ARE RESURFACING.

THAT'S ON YOU, THE CITY COUNCIL FOR NOT HIRING A CONSULTANT OR NOT LISTENING.

BUT NOTHING HAS BEEN DONE, AND YET BIG MONEY'S BEEN PAID.

I'M VERY DISAPPOINTED AND I HOPE THAT YOU WILL DO BETTER AS I'M DOING BETTER, AND I HOPE THAT YOU WILL DO SOMETHING FOR SENIORS.

BECAUSE THEY DESERVE IT, AND TO LOCK THEM OUT OF ROOMS AT THE SENIOR CENTER BECAUSE YOU NEED A CITY HALL AND DON'T HAVE ONE.

DIANA RICKER.

MICRO SMALL LENS CAMERAS HAVE BEEN PLACED IN MY HOME.

I SUSPECT THEY WERE PLACED IN MY HOME BECAUSE THEY WANT TO SEE, LIKE MY DAILY HABITS, MY SCHEDULE, MY FAVORITE JACKET, MY FAVORITE HAT THAT I WEAR. WHEN I FALL ASLEEP OR WHEN WE FALL ASLEEP.

BUT I'M NOT THE ONLY ONE BEING WATCHED.

WHEN YOU OR ANY OTHER CITY OF CARLSBAD OFFICIAL DECIDES NOT TO GET INVOLVED, NOT TO HELP ME, HE IS ALSO WATCHING AND HEARING YOU.

AND THAT TIME THESE YEARS THAT HAVE GONE BY WITHOUT ANY HELP HAVE STRENGTHENED HIM.

AND HE'S BECOME MORE BOLD.

HE HAS SOLICITED OTHERS TO HARM ME TOO.

BECAUSE HE HAS CONTROL OF MY PHONE, HE HAS ACCESS TO MY CONTACTS, AND AFTER BEING AT MY APARTMENT COMPLEX FOR UNDER A YEAR, HE FOUND A CLEVER WAY TO GET MY NEIGHBOR NEXT DOOR NEIGHBORS TO HARM ME AND HARASS ME TOO.

THEN THESE NEIGHBORS GOT OTHER NEIGHBORS TO HARASS ME.

SOMEONE TOLD ME YOU SHOULD GO GET A RESTRAINING ORDER.

I DID, I WENT TO THE COURTHOUSE AND I WENT TO GO GET A RESTRAINING ORDER AND I FILED A RESTRAINING ORDER AND WAS GRANTED A TEMPORARY RESTRAINING ORDER.

RIGHT AFTER THAT TIME, I FELL ILL WITH UNEXPLAINED SYMPTOMS, DEBILITATING SYMPTOMS. I WENT TO MY DOCTOR, I FILED, AND AT THE END OF SEPTEMBER, AND I WENT TO MY DOCTOR AT THE END OF OCTOBER BECAUSE I WAS VERY SICK. THEY SHE TOLD ME THAT I HAD BEEN POISONED WITH ARSENIC.

I SUSPECT THAT I WAS POISONED WITH ARSENIC BY HIM AND THESE NEIGHBORS TO SABOTAGE MY PHYSICAL ABILITY TO PURSUE JUSTICE.

I'M PLEADING WITH ALL OF YOU.

WHEN I LEAVE HERE, I ALWAYS GET A CALL, I GET ONE CALL.

SO SOMEONE ON THE PANEL I THINK IS TRYING TO HELP ME OR HAS TRIED TO HELP ME.

SO TO WHOMEVER DID THAT, THANK YOU FROM THE BOTTOM OF MY HEART.

[00:15:05]

I HAVE A USB DRIVE THAT HAS EVIDENCE THAT THERE ARE CAMERAS IN MY HOME AND THAT I'M BEING STALKED.

CYBER STALKED.

I ALSO HAVE EVIDENCE OF THE NEIGHBORS THAT ARE HARASSING ME.

I'D LIKE TO GIVE TO.

DIANA. THE BACK OF THE ROOM IS A POLICE LIEUTENANT.

WILL YOU PLEASE MEET WITH HIM? AND YOU CAN SHARE THAT WITH HIM.

THANK YOU. ROBERT BECK.

HI. GOOD EVENING.

CONCERNS ABOUT THE BUILDING OF ADUS IN OUR COMMUNITY.

THE FIRST ONE THAT I KNEW OF STARTED ABOUT TWO WEEKS AGO.

AND SO I CALLED THE CITY AND THE FIRST PERSON I SPOKE WITH WAS MIKE STRONG, AND HE SENT ME A COUPLE BILLS AND A WHITE PAPER FROM CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT.

IT'S THE ACCESSORY DWELLING UNIT HANDBOOK AND I HAVE A HANDOUT THAT WENT TO SIX OF YOU.

I DIDN'T HAVE ENOUGH, I JUST THOUGHT IT WOULD BE COUNCIL MEMBERS.

BUT ON THE FRONT PAGE OF THAT IN RED IS FROM THE FIRST PARAGRAPH OF THAT HANDBOOK, WHICH KIND OF SETS THE WHOLE TONE FOR THE HANDBOOK.

AND IT SAYS AS AFFORDABLE HOUSING BECOMES LESS ACCESSIBLE, PEOPLE DRIVE LONGER DISTANCES BETWEEN HOUSING THEY CAN AFFORD AND THEIR WORKPLACE, OR PACK THEMSELVES INTO SMALLER, SHARED SPACES, BOTH OF WHICH REDUCE QUALITY OF LIFE AND PRODUCE NEGATIVE ENVIRONMENTAL IMPACTS.

WELL, IN THIS PARTICULAR INSTANCE, THERE WAS A FAMILY OF FIVE LIVING IN A HOME, AND THERE THEY WERE RENTING AND IT'S AN ABSENTEE OWNER OBVIOUSLY. HE DECIDED TO ADD AN ADU.

HE ALSO DECIDED TO BUMP UP THEIR RENTAL BY $2,000.

HE'S ASKING $4,000 FOR I DON'T KNOW WHAT IT IS, 700 SQUARE FOOT GARAGE SPACE.

SO. IF THE STATE IS TRYING TO PRODUCE AFFORDABLE HOUSING, A, THIS IS NOT IT.

AND IF THEY'RE TRYING TO ELIMINATE PEOPLE BEING PACKED INTO SMALL PLACES, THIS IS NOT IT EITHER.

SO THAT'S PART OF MY COMPLAINT.

ANOTHER PART OF MY COMPLAINT IS THE ENVIRONMENTAL IMPACT OF SO MANY PEOPLE LIVING TOGETHER.

NOW RIGHT NOW THIS IS ONLY ONE ADU, BUT IT'S ON A CORNER, THE LAST TWO OR SECOND LAST PAGE SHOWS PICTURES OF VEHICLES THAT ARE PARKED ON THAT CORNER.

AND RIGHT NOW SOME OF THOSE VEHICLES ARE CONSTRUCTION VEHICLES.

BUT THE PEOPLE WHO LIVE THERE, THEIR CARS ARE GOING TO TAKE THE THE SPACES OF THOSE CONSTRUCTION VEHICLES.

SO RIGHT NOW THERE'S THREE VEHICLES THERE.

THEY'RE LOSING THE GARAGE.

THEY'RE LOSING ONE OF THEIR SPACES ON THE DRIVEWAY, AND THERE WILL PROBABLY BE AT LEAST TWO MORE VEHICLES MOVING IN.

SO YOU'RE TAKING AWAY THREE SPACES, ADDING TWO CARS.

THEY HAVE NOWHERE TO PARK.

THEY WILL PROBABLY PARK ON THE SIDE STREET, WHICH IS VERY DANGEROUS.

YOU CAN'T SEE CARS COMING UP THE STREET WHEN YOU'RE TRYING TO MAKE A LEFT HAND TURN AND IF YOU'RE MAKING A RIGHT HAND TURN OR GOING STRAIGHT AS YOU COME UP THE STREET, YOU CAN'T SEE CARS COMING OUT OF THAT STREET.

IT'S REALLY DANGEROUS, AND IF THEY DON'T PARK THERE.

SIR. SIR, MAY I REFER YOU TO JEFF MURPHY? HE'S STANDING IN THE BACK, WAVING HIS HAND TO TALK TO HIM ABOUT SOME OF THOSE RULES AND REGULATIONS.

THERE ARE NO ADDITIONAL SPEAKERS.

THANK YOU. NEXT IS CONSENT CALENDAR ITEMS ONE, TWO AND THREE.

[CONSENT CALENDAR]

MOTION, PLEASE.

MOVE CONSENT ITEMS ONE THROUGH THREE.

SECOND. PLEASE VOTE.

CONSENT CALENDAR ITEM PASSES UNANIMOUSLY.

[4. ANNUAL WORK PLANS FOR THE PLANNING COMMISSION AND HISTORIC PRESERVATION COMMISSION]

CITY MANAGER, PLEASE.

GREAT. THANK YOU SO MUCH.

ITEM NUMBER FOUR IS THE ANNUAL WORK PLANS FOR THE PLANNING COMMISSION AND HISTORIC PRESERVATION COMMISSION.

MAKING OUR PRESENTATION TODAY IS OUR CITY PLANNER, ERIC LARDY, ALONG WITH OUR ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR, MIKE STRONG.

GENTLEMEN. ALL RIGHT.

GOOD EVENING, MAYOR AND COUNCIL.

MY NAME IS MIKE STRONG, I'M THE ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR.

AND JOINING ME IS ERIC LARDY, THE CITY PLANNER.

TONIGHT'S AGENDA ITEM IS TO COVER TWO WORK PLANS AND ANNUAL REPORTS BOTH WITH THE PLANNING COMMISSION AND HISTORIC PRESERVATION COMMISSION.

[00:20:07]

THE ANNUAL FORMAT ALLOWS FOR A RECURRING CHECK IN AND GIVES THE OPPORTUNITY TO MONITOR AND KEEP A PULSE ON THOSE RESPECTIVE COMMISSIONS.

THIS EVENING'S AGENDA REPORT DOES CONSOLIDATE THE TWO COMMISSION REPORTS.

AND THAT HAS BEEN TRADITIONALLY PROVIDED BY THE COMMUNITY DEVELOPMENT DEPARTMENT.

THE COMMISSION DUTIES ARE DEFINED IN THE CARLSBAD MUNICIPAL CODE.

THE PLANNING COMMISSION'S JURISDICTION PRIMARILY RELIES IN TITLES 19, 20, AND 21.

THEIR PRIMARY PURPOSE IS TO REVIEW LAND USE DEVELOPMENT PROJECTS AND ADVISE THE CITY COUNCIL ON LAND USE RELATED MATTERS.

ESTABLISHING POLICY FOR THE CITY.

THE HISTORIC PRESERVATION COMMISSION'S JURISDICTION IS PRIMARILY ENTITLED 22, AND THAT WAS RECENTLY REVISED A YEAR AND A HALF AGO, WITH A STRENGTHENING AMENDMENTS TO TITLE 22 TO INCLUDE ALSO PROVISIONS ON INCENTIVES, INCLUDING THE MILLS ACT.

THE ANNUAL REPORTS THAT ARE PROVIDED AS EXHIBITS TO THE STAFF REPORT LIST THE ITEMS AND THE STATUSES OF EACH WORK PLAN ACTIVITY FROM THE PREVIOUS YEAR.

IT ALSO IDENTIFIES THE FUTURE ITEMS AND WORK PLAN ACTIVITIES TO BE WORKED ON IN THIS NEXT FISCAL YEAR, AND HISTORICAL REPORTS.

THE CHAIRS OF EACH RESPECTIVE COMMISSION HAVE PRESENTED AND DEBRIEFED THE CITY COUNCIL ON THOSE ACTIVITIES.

THE CHAIR FOR THE PLANNING COMMISSION IS HERE THIS EVENING, SO I'LL BE INVITING HIM UP IN A MOMENT.

THAT'S CHAIR. KIMLEY-HORN.

AND THE CHAIR FOR THE HISTORIC PRESERVATION COMMISSION IS RUNNING A LITTLE LATE, SO I WILL BE SPEAKING ON HIS BEHALF AS A STAFF LIAISON.

PERFECT TIMING.

WELL, WE'LL TAKE THIS MAYBE IN SEPARATE ORDER.

SO I'LL FIRST INVITE THE CHAIR KAMENJARIN TO PRESENT ON THE PRIOR YEARS OF ACCOMPLISHMENT AND THOSE ACTIVITIES COVERED UNDER THIS NEXT FISCAL YEAR PLAN.

AND THEN COMMISSIONER OR CHAIR MAJOR WILL BE INVITED TO SPEAK TO THE COUNCIL.

THANK YOU. GOOD AFTERNOON.

MR. MAYOR LADIES OF THE CITY COUNCIL.

MY NAME IS BILL KAMENJARIN.

I'M THE CURRENT CHAIR OF THE PLANNING COMMISSION.

I'VE BEEN ASKED OR TASKED TO COME HERE TONIGHT TO SPEAK TO YOU BRIEFLY.

I HAD THE OPPORTUNITY TO ATTEND THE LEAGUE OF CALIFORNIA CITIES TWO AND A HALF DAY SEMINAR EARLIER THIS YEAR, AND IT WAS A REAL EYE OPENER.

I MEAN, I'VE LOVED THIS CITY.

I ALWAYS THOUGHT WE HAD A GREAT CITY GOING, BUT I WAS SO IMPRESSED WITH WHAT I SAW.

THERE WERE 400 OTHER PLANNING COMMISSIONERS, MAYORS DESIGNERS, CITY PLANNERS FROM ALL OVER THE STATE.

AND WE'RE THE TOP OF THE HEAP.

I MEAN, THERE'S NO QUESTION WHAT WE HAVE GOING FOR US.

WE'VE GOT A COMMITTED, DEDICATED CITY COUNCIL.

WE'VE GOT A DILIGENT, CONCERNED PLANNING DEPARTMENT, AND YOU'VE GOT PLANNING COMMISSIONERS WHO ARE WHO EXHIBIT A BREADTH AND DEPTH OF PRACTICAL AND APPLIED EXPERIENCE.

SO CONGRATULATIONS ON THE APPOINTMENTS YOU MADE TO MYSELF AND THE OTHER PLANNING COMMISSIONERS.

AND I'LL SPEAK BRIEFLY ABOUT WHAT THE CITY HAS PLANNING COMMISSION HAS DONE.

INCIDENTALLY, ANY PROBLEMS THAT WE THINK WE HAVE IN THE CITY OF CARLSBAD PALE, PALE IN COMPARISON TO THE REALITY OF SOME OF THESE CITIES WHO ARE DESPERATE.

I MEAN, WE HAVE AN OPPORTUNITY TO BE SELECTIVE AND ENGAGE IN RESPONSIBLE, INTELLIGENT PLANNING.

SOME OF OUR FELLOW CITIES ARE DESPERATE.

THEY WOULD TAKE A GLUE FACTORY.

THEY WOULD TAKE A SALT MINE.

I'M SERIOUS, AND WHEN I HAD MY LANYARD ON WITH MY NAME IN THE CITY, I WAS LIKE A COURTED, LIKE STATUS, LIKE, GEE, I'D LOVE TO LIVE THERE.

GEE, I'D LOVE TO BE A PART OF YOUR CITY.

WHAT'S THE SECRET FOR YOUR CITY'S SUCCESS? SO THANK YOU ALL AND EVERYBODY INVOLVED IN THIS.

LET ME SPEAK REAL BRIEFLY ABOUT WHAT WE'VE DONE ON THE PLANNING COMMISSION IN THE LAST YEAR WE'VE MET 15 TIMES.

WE HAVE REVIEWED IN OCTOBER 2023 AND RECOMMENDED APPROVAL OF THE CITY HOUSING ELEMENT REZONING PROGRAM, WHICH YOU APPROVED IN

[00:25:01]

WE ALSO RECOMMENDED THE CITY COUNCIL APPROVE THE TWO SETS OF OBJECTIVE DESIGN STANDARDS, WHICH I THINK IS GOING TO GO A LONG WAY FOR INTELLIGENT GROWTH FOR THIS CITY.

WE'VE APPROVED MULTIPLE CITY PROJECTS, SUCH AS THE BEACH ACCESS REPAIRS EAST TO WEST CORRIDOR PROJECT, CARLSBAD BOULEVARD RESTRIPING, AND THE EL CAMINO REAL EXPANSION FROM SUNNY CREEK TO JACKSBORO.

WE ALSO APPROVED OR RECOMMENDED APPROVAL OF PRIVATE PROJECTS SUCH AS LEGOLAND PROJECT 2025, CARLSBAD BY THE SEA SUMMER HOUSE, AND THE HOPE APARTMENTS. THE COMMISSION BALANCES INPUT FROM THE TESTIMONY, STATE LAW AND CITY APPROVED REGULATIONS IN THE EVALUATION AND RECOMMENDATIONS RELATED TO THESE PROJECTS.

THIS COMING YEAR, WE'LL MEET AGAIN 1 TO 2 TIMES PER MONTH.

TO CONTINUE TO SUPPORT OUR RESIDENTS AND APPLICANTS IN CONDUCTING THE BUSINESS OF THE CITY.

PROJECTED PROJECTS EXPECTED NEXT YEAR INCLUDE VILLAGE, BARRIO AND BEACH PARKING MANAGEMENT PLAN UPDATE AND THE VILLAGE AND BARRIO MASTER PLAN AMENDMENT.

AVENIDA ENCINA COASTAL RAIL TRAIL.

EL CAMINO REAL EXPANSION AGAIN, THIS TIME FROM ARENAL TO LA COSTA.

TERRAMAR AREA ROADWAY IMPROVEMENTS.

MEMBERS OF THE PLANNING COMMISSION SERVE ON THE FOLLOWING COMMITTEES.

AGRICULTURAL CONVERSION MITIGATION FEE ADVISORY COMMITTEE AND THE HISTORIC PRESERVATION COMMITTEE, WHICH WE SEND AN EX-OFFICIO MEMBER.

AS WE APPROACH BUILDOUT, WE'RE SORT OF ON THE FRONT LINES IN THE PLANNING COMMISSION AS ALL YOU ARE.

I'LL JUST GIVE YOU AN ANECDOTE.

WHAT'S HAPPENED RECENTLY? EARLIER THIS MONTH, WE MET THREE OF THE PROJECTS ON THE AGENDA WERE DEMOLITION OF EXISTING OLDER HOMES AND THE ESTABLISHMENT AND BUILDING OF NEW HOMES.

MUCH LARGER, MUCH GRANDER.

I WANT TO MENTION ONE THING.

WE ARE SHORT A MEMBER ON THE PLANNING COMMISSION.

I THINK YOU'RE ALL AWARE OF THIS BECAUSE ONE OF OUR MEMBERS QUIT.

IT WOULD BE REAL HELPFUL.

NOT THAT WE'RE GOING TO HAVE NECESSARILY THREE, THREE TIES WITH THE REMAINING SIX MEMBERS, BUT A REAL HELPFUL IF YOU COULD DO ANYTHING TO EXPEDITE AND FACILITATE PERHAPS A SOONER APPOINTMENT. AND I'D LIKE TO RECOMMEND THAT OUR PLANNER, MR. LARDY, BE A PART OF THAT CONVERSATION.

THANK YOU AGAIN FOR YOUR TIME AND YOUR WISDOM AND YOUR APPOINTMENTS.

AND FOR THE CITY COUNCIL, I'D LIKE TO INTRODUCE SOMEONE WITH IMPECCABLE TIMING.

CHAIR MAJOR. YEAH.

GOOD EVENING, MAYOR AND COUNCIL.

THANK YOU FOR HAVING US.

I'D LIKE TO GO OVER THE ACCOMPLISHMENTS OF THE HISTORIC PRESERVATION COMMISSION FOR THE LAST FISCAL YEAR.

WE HAD FOUR MEETINGS OVER THE COURSE OF THE YEAR.

ONE MEETING WAS ADJOURNED DUE TO A LACK OF A QUORUM.

WE FORMED A SUBCOMMITTEE TO UPDATE THE WEBSITE.

THE GOAL IS TO IMPLEMENT SOME TECHNOLOGY BASED SOLUTIONS FOR PEOPLE BEING ABLE TO EXPLORE THE HISTORIC PRESERVATION RESOURCES AROUND TOWN.

LOOK, THE OTHER WAYS USING TECHNOLOGY TO SHARE THAT INFORMATION.

WE APPROVED THE NOMINATION OF A TREE, A NEW TREE FOR THE HERITAGE TREE PROGRAM, WHICH WE PASSED ON TO THE COUNCIL.

WE ADOPTED A UNIFORM PLAQUE PROGRAM FOR OUR HISTORIC RESOURCES, AS YOU KNOW IN MANY YEARS AGO, WE HAD A PLAQUE PROGRAM WHERE PLAQUES WERE PUT ON BUILDINGS EVERY YEAR.

THAT HASN'T HAPPENED IN MANY YEARS, AT LEAST SINCE I'VE BEEN ON.

SO NOW WE HAVE A PROGRAM FOR THAT THAT WE'RE GOING TO IMPLEMENT THIS YEAR.

AND WE APPROVED OUR WORK PROGRAM.

THIS YEAR WE CONTINUE TO UPDATE THE THE NEW WEBSITE.

WE'RE CREATING A BROCHURE FOR PEOPLE TO BE ABLE TO GO AROUND AND EXPLORE THE DIFFERENT HISTORIC RESOURCES THAT WE HAVE ON OUR WALKING TOUR.

WE'RE REVIEWING.

WE, AS YOU KNOW, WE IMPLEMENTED THE MILLS ACT OR THE COUNCIL IMPLEMENTED THE MILLS ACT.

WE'RE LOOKING AT OPTIONS TO INCREASE THE PARTICIPATION IN THAT.

SO DIFFERENT INCENTIVES THAT WE CAN PROVIDE THE HOMEOWNERS AND PROPERTY OWNERS TO ENCOURAGE PEOPLE TO SIGN UP FOR THAT PROGRAM.

WE'RE IMPLEMENTING THIS YEAR THE PLAQUE PROGRAM THAT WE DESIGNED LAST YEAR.

SO THIS YEAR, WE SHOULD WE WILL RESTART PUTTING PLAQUES ON THE HISTORIC RESOURCES.

[00:30:03]

AND WE LOOK, WE'RE LOOKING TOWARDS TECHNOLOGY BASED ITEMS FOR THOSE PLAQUES SO THAT MAYBE WE HAVE A SEPARATE SIGN WITH A QR CODE THAT TAKES YOU TO MORE INFORMATION ABOUT THOSE HISTORIC RESOURCES.

AND THEN WE CONTINUE OUR THIRD GRADE HISTORIC ART PROGRAM THAT WE'RE DOING RIGHT NOW.

AND THEN WE CONTINUE OUR ORAL HISTORY PROGRAM WHERE SOME OF THE LONG TIME RESIDENTS OF THE COMMUNITY ARE INTERVIEWED, AND THOSE INTERVIEWS ARE TRANSCRIBED AND AVAILABLE THROUGH THE LIBRARY'S HISTORIC CARLSBAD PROGRAM.

AND THEN FURTHERMORE, WE CONTINUE TO STUDY AND REPORT ANY MATTERS REFERRED TO US THAT NEED TO GO TO COUNCIL.

AND THAT'S THE CONCLUSION OF OUR WORK PROGRAM FOR THIS YEAR.

SIR, YOU TALK ABOUT THE PLAQUE PROGRAM, COULD YOU GO INTO A LITTLE BIT MORE DETAIL? AND THE REASON I ASKED THAT IS I'VE ALWAYS HAD THIS THOUGHT YOU'VE SEEN CARLSBAD MAGAZINE, WHERE THEY SHOW PICTURES OF A CORNER FROM THE 1920S AND WHAT IT LOOKS LIKE TODAY.

AND I'VE ALWAYS THOUGHT WE HAVE ALL THOSE PHOTOS THAT HOW NICE THAT WOULD BE FOR US TO PUT A FRAME PHOTO IN EACH BUSINESS, SHOWING WHAT THAT BUSINESS LOOKED LIKE IN THE 20S OR 30S. I THOUGHT THAT WOULD BE FUN.

ARE WE IS THAT PART OF THE PLAQUE PROGRAM OR IS THAT SOMETHING WE'RE TALKING ABOUT? I BELIEVE OUR THE PLAQUES THAT WE APPROVED ORIGINALLY, THEY WEREN'T GOING TO HAVE ANY EXTRA INFORMATION.

IT WAS GOING TO BE VERY LITTLE, YOU KNOW, MAYBE A DOZEN WORDS OR SO.

BUT WE DID APPROVE TO HAVE MORE GRAPHIC PLAQUE PROGRAM.

AND THEN AND THE SOLUTION WAS BROUGHT FORWARD BECAUSE OBVIOUSLY WITH BRONZE PLAQUES, THEY GET EXPONENTIALLY MORE EXPENSIVE.

THE BIGGER AND MORE COMPLICATED THEY GET THAT WE CAN HAVE SUPPLEMENTAL THINGS SUCH AS THE QR CODE.

AND THAT'S A GREAT IDEA TO HAVE PICTURES AS THAT BUILDING LOOKED AND AS THAT INTERSECTION LOOKED.

BUT THAT'S ALSO PART OF THE TECHNOLOGY BASED ASPECT.

SO THAT HOPEFULLY, EVEN IF WE DON'T HAVE THAT PICTURE ON THE BUILDING, YOU COULD HIT THE QR CODE AND EVENTUALLY THE IDEA IS THAT YOU COULD DO AUGMENTED REALITY. SO YOU COULD KIND OF PUT YOUR PHONE AROUND AND SEE WHAT IT LOOKED LIKE, YOU KNOW, 100 YEARS AGO.

AS MUCH AS I APPRECIATE THE QR CODE, I'M OLD AND I PROBABLY AM NOT LIKELY TO SCAN QR CODES WHEN I'M WALKING DOWN A PARTICULAR STREET, AND I SO CONSIDER MAYBE SOME NICE BLACK AND WHITE PICTURES OF SOME OF THESE LOCATIONS FROM THE, THE 20S AND 30S THAT WE MIGHT BE ABLE TO PUT INTO THE LOCAL BUSINESSES WHO WANT WANT TO PARTICIPATE.

CERTAINLY, DEFINITELY. THANK YOU.

COUNCIL HAVE ANY QUESTIONS OR COMMENTS? OKAY. MISS BHAT-PATEL.

SURE. THANK YOU.

AND THANK YOU BOTH FOR BEING HERE, I THINK, AND WE'RE AT THE RECOMMENDATION PART RIGHT.

I JUST WANT TO MAKE SURE YOU DIDN'T HAVE MORE TO SAY.

OKAY. THANK YOU TO BOTH CHAIRS FOR BEING HERE.

I AM SO GLAD THAT WE HAVE THE OPPORTUNITY TO SEE THESE WORK PLANS, BECAUSE I THINK IT'S A GREAT WAY FOR THE COMMUNITY TO KNOW ALL THE WORK THAT YOU ALL ARE DOING, AND THE VOLUNTEER HOURS THAT YOU'RE PUTTING IN TO MAKE SURE THAT WE'RE SERVING OUR COMMUNITY.

IT TAKES A LOT OF TIME, AND I AM SO APPRECIATIVE OF BOTH OF YOU FOR BEING HERE TODAY.

AND I THINK THE HISTORIC PIECE IS SO COOL TO HEAR THAT WE'RE GOING TO BE ADDING IN SOME MORE TECHNOLOGICAL ASPECTS TO IT, AND JUST TRYING TO MAKE SURE THAT PEOPLE ARE AWARE OF THAT. AND FROM THE PLANNING COMMISSION SIDE I'M GLAD YOU HAD A GREAT TIME AT CAL CITIES.

I KNOW CAL CITIES DOES A GREAT JOB EDUCATING FOLKS THROUGHOUT THE STATE, AND IT SOUNDS LIKE YOU ALL ARE ALWAYS BUSY.

I MEAN, YOU YOU SAID YOU HAD 15 MEETINGS, AND I'M SURE THAT'S ON TOP OF ALL THE OTHER PREP THAT YOU HAVE TO DO FOR THE MEETING.

SO I REALLY APPRECIATE BOTH OF YOUR TIME AND WORK ON THIS.

THANK YOU. MISS ACOSTA.

THANK YOU. THANK YOU.

AND I FEEL LIKE I CAN'T SEE CHAIR KAMENJARIN, HE'S RIGHT BEHIND YOU FROM WHERE I'M SITTING.

HELLO. BECAUSE I DO WANT TO SPEAK TO BOTH OF YOU AND SAY THANK YOU FOR BEING HERE.

THANK YOU TO ALL THE COMMISSIONERS.

I HOPE THAT YOU PASS ALONG OUR GRATITUDE TO THE OTHER COMMISSIONERS, TOO, FOR THEIR WORK.

YOU'RE ALL VOLUNTEERS AND YOU DO SO MUCH WORK FOR US.

I KNOW IT'S A HEAVY LIFT SOMETIMES FOR THE PLANNING COMMISSION, AND WE WANT TO SAY THANK YOU TO YOU.

I ALSO WANTED TO MENTION TO CHAIR KAMENJARIN, THE VACANCY THAT YOU'RE TALKING ABOUT IS A DISTRICT FOUR APPOINTMENT.

AND RIGHT NOW WE ARE ACCEPTING APPLICATIONS ONLINE.

THE APPLICATION PERIOD CLOSES JUNE 7TH, SO WE CAN'T APPOINT BEFORE THE APPLICATION PERIOD CLOSES.

BUT I DO THINK THAT THERE IS A PERIOD OF TIME THAT WE HAVE TO FOLLOW.

I BELIEVE THE COUNCIL DATE IS SOMEWHERE NEAR THE END OF JUNE THAT WE WILL BE MAKING THAT APPOINTMENT.

SO THANK YOU FOR EXPRESSING THE URGENCY, BUT PLEASE COMMUNICATE TO FOLKS THAT WE HAVE TO FOLLOW THE PROCESS, AND IT SHOULD BE SOMETIME IN LATER JUNE THAT WE MAKE THAT APPOINTMENT.

[00:35:01]

I AM REALLY EXCITED TO HEAR ABOUT SOME OF YOUR PLANS AND TO READ ABOUT THEM HERE.

I AM REALLY INTERESTED IN THE VIRTUAL OR ASSISTED REALITY.

I THINK IT'S REALLY COOL AND I LIKE BOTH.

SO I'M NOT SAYING I DON'T LIKE THE PHOTOS, BUT I LIKE THE IDEA OF A QR CODE AND MAYBE SOME OF THE OTHER TECHNOLOGIES THAT WE CAN INCORPORATE YOU KNOW, COSTS, COSTS ALLOWING FOR THAT KIND OF THING SOUNDS A LITTLE EXPENSIVE.

SO WHATEVER WE CAN AFFORD WITH REGARD TO THAT.

BUT I'M SO PLEASED TO HAVE SO MANY ENGAGED VOLUNTEERS ON OUR COMMISSIONS, AND WE WANT TO THANK YOU AND OUR STAFF FOR WORKING WELL, SO, SO WELL TOGETHER AND BRINGING RECOMMENDATIONS TO THE COUNCIL THAT WE CAN RELY ON.

THANK YOU. GREAT.

THANK YOU. MISS BURKHOLDER.

YES, THANK YOU VERY MUCH CHAIRS, FOR COMING TONIGHT AND EXPRESSING WHAT'S BEEN GOING ON WITH EACH COMMISSION.

WE DO APPRECIATE AND RECOGNIZE IT'S VOLUNTARY AND THAT IT TAKES A LOT OF TIME AND COMMITMENT.

SO WE APPRECIATE THAT SO MUCH.

I REFLECT THE SENTIMENTS OF MY COLLEAGUES ON THAT.

MR. CHADWICK, WOULD THIS BE AN APPROPRIATE TIME TO MAKE A MINUTE MOTION? YES IT WOULD. OKAY.

AS REFLECTED IN THE PLANNING COMMISSION WORK PLAN, THE MISSION OF THE PLANNING COMMISSION IS TO CONSIDER LAND USE MATTERS, INCLUDING ZONING CODE AMENDMENTS.

AMONG THE VARIOUS PROJECTS LISTED IN THE WORK PLAN THAT STAFF INTENDS TO BRING FORWARD TO THE PLANNING COMMISSION.

FOR THEIR RECOMMENDATION, I WOULD LIKE TO ADD ANOTHER ITEM TO THE CART.

DRIVE THROUGH FACILITIES ASSOCIATED WITH NEW RESTAURANTS HAVE BEEN EXPRESSLY PROHIBITED IN THE CITY SINCE 1998.

WITH THE ONSET OF THE COVID PANDEMIC, BUSINESS OPERATORS HAD TO FIND CREATIVE WAYS TO QUICKLY PROVIDE PRODUCTS AND SERVICES TO THEIR CUSTOMERS WITH LITTLE TO NO PHYSICAL CONTACT. IN RESPONSE, MANY RETAIL MERCHANTS OFFERED PICKUP SERVICES AT THEIR ESTABLISHMENT OR USED DELIVERY SERVICES SUCH AS DOOR DASH AND UBER EATS TO GET THEIR PRODUCTS DELIVERED TO CUSTOMERS.

WHILE THE PANDEMIC EMERGENCY IS BEHIND US, THE VALUE OF QUICK DELIVERY AND PICKUP SERVICES REMAINS AN IMPORTANT ALTERNATIVE FOR MANY RETAIL BUSINESSES AND CUSTOMERS. WHILE I UNDERSTAND THE REASONING BEHIND THE ORIGINAL DRIVE THROUGH BAN, THE WORLD HAS CHANGED AND I THINK THE TIME IS RIGHT TO REEVALUATE OUR ROLES AND DISCUSS WHAT OPTIONS ARE AVAILABLE TO ALLOW DRIVE THRUS, EVEN IF ONLY ON A LIMITED BASIS.

THEREFORE, I MAKE A MOTION TO DIRECT STAFF TO DEVELOP A SERIES OF OPTIONS FOR THE REGULATION OF DRIVE THROUGH FACILITIES, RANGING FROM A CONTINUED BAN TO CITYWIDE ALLOWANCE. I FURTHER DIRECT TO HAVE THESE OPTIONS BE PRESENTED BEFORE THE PLANNING COMMISSION FOR THEIR RECOMMENDATION, BEFORE RETURNING TO THE CITY COUNCIL FOR CONSIDERATION AND POSSIBLE DIRECTION.

I'LL GO AHEAD AND SECOND THAT MOTION.

OKAY. CAN WE FINISH? WELL, WE'LL COME BACK TO THE VOTE IF THAT'S OKAY WITH YOU, AND LET'S JUST FINISH OUR COMMENTS ON THE TOPIC.

MISS LUNA. I'VE SAT HERE SEVEN YEARS AS A PLANNING COMMISSIONER, SO THEY'RE THE BEST.

BUT SOMETHING THAT MAY BE IN THE NEXT COUPLE OF MONTHS.

I DON'T KNOW IF YOU'RE.

WE'RE SO BUSY WITH SO MANY THINGS, BUT THAT THE HISTORIC COMMISSION MIGRATED OVER TO COMMUNITY DEVELOPMENT, AND I THINK IT'S FOUND A REALLY GOOD HOME AND MR. STRONG. AND YOU'VE DONE AN EXCELLENT JOB ON SORT OF RAISING THEIR AWARENESS AND THE PLAQUES AND WHAT THE MAYOR WAS ALLUDING TO.

SO I THINK YOU FOUND A GREAT, GREAT HOME WITH COMMUNITY DEVELOPMENT.

BUT I THINK AS WE'RE ALLUDING TO, THINGS ARE EVOLVING AND MAYBE IN THE NEXT COUPLE OF MONTHS, MAYBE TAKE A LOOK AT OUR COMMISSION, OTHER COMMISSIONERS AND SEE MAYBE IF THEY'RE IN THE RIGHT HOME.

SO THAT'S JUST STAY TUNED.

SO THANK YOU, EVERYBODY.

THANK YOU VERY MUCH.

BOTH CHAIRS AND IT'S A LOT OF TIME AND EFFORT AND I KNOW MY COLLEAGUES DO TELL ME REGULARLY AND I'M NOT PATRONIZING THEM THAT THEY TRULY DO APPRECIATE ALL THAT YOU DO. SO THANK YOU SO MUCH AND WE ARE FORTUNATE WE'VE GOT THE CREAM OF THE CROP.

SO UNDER MISTER STRONG AND MISTER MURPHY'S AND MISTER LARDY'S DIRECTION IT'S A GREAT TEAM.

THANK YOU. THANK YOU BOTH.

THANK YOU FOR YOUR YOUR ENTIRE COMMITTEES.

PLANNING COMMISSION DOES SO MUCH WORK AND IT'S SO IMPORTANT.

AND FOR THAT, THANK YOU.

AND THANK YOU FOR SHARING THOSE OBSERVATIONS.

AS THE MAYOR, WHEN I GO TO GROUPS OF OTHER MAYORS WITHIN THE AREA, I STAY QUIET BECAUSE I'M VIEWED AS THAT SPOILED LITTLE MAYOR FROM CARLSBAD.

SO I UNDERSTAND EXACTLY WHAT YOU'RE TALKING ABOUT.

WE ARE VERY, VERY FORTUNATE HERE.

AND I KNOW THAT THE HISTORIC PRESERVATION WORKS VERY HARD, BUT IN MY WORLD, YOU'VE GOT THE MORE FUN JOB.

THE HISTORIC PRESERVATION IS EXCITING.

I ABSOLUTELY, FIRST PAGE I LOOK AT WHEN CARLSBAD MAGAZINE COMES OUT IS THAT BEFORE AND AFTER PICTURES? AND I AND I LOVE IT. SO PLEASE SHARE WITH WITH THE COMMITTEES HOW MUCH WE APPRECIATE THE WORK YOU GUYS DO.

THANK YOU. AND NOW WE HAVE A MOTION AND A SECOND.

[00:40:02]

YES. THANK YOU. I'D WANT TO MAKE SURE WHEN WE DO, IF WE DO DISCUSS IT, IF IT PASSES THAT WE TAKE INTO CONSIDERATION THE SMALL BUSINESSES AND THE MERCHANTS, BECAUSE DRIVE THRUS TEND TO BE FOR LARGE CHAINS.

SO I JUST WANT TO MAKE SURE THAT WE TAKE INTO CONSIDERATION THAT FEEDBACK AS WELL.

AND I ASSUME THAT YOU'RE GOING TO BE COMING BACK WITH THE PROS AND CONS, THE ORIGINAL REASONS OF WHY WE HAVE THAT CODE AND THAT WILL ALL BE INCLUDED IN THE PRESENTATION.

YES, THAT WOULD AND WE WOULD ALSO HAVE OUTREACH IN THE FORM OF A PLANNING COMMISSION WORKSHOP AND AND RECOMMENDATION CONSISTENT WITH THE MINUTE MOTION.

THANK YOU. MISS ACOSTA, THANK YOU.

I HAVE ACTUALLY HAD CONVERSATIONS ABOUT DRIVE THRUS WITH RESIDENTS FOR SOME TIME.

THEY HAVE ALL BEEN VERY NEGATIVE.

SO I'M WONDERING, I GUESS, THE QUESTION FOR MY COLLEAGUE, WHERE IS THIS IDEA COMING FROM? BECAUSE I'VE NEVER HEARD ANYBODY SAY THAT THEY WANT MORE DRIVE THRUS.

WELL, I ACTUALLY JUST LOOKED AT OUR BUDGET, AND I THINK WE NEED TO DRIVE SOME REVENUE INTO THE CITY.

AND I THINK THIS IS AN OPPORTUNITY TO DO THAT.

OBVIOUSLY RESPECTING SMALL BUSINESSES, EXISTING BUSINESSES IS DEFINITELY KEY, BUT IT'S NOTHING.

THERE'S NOTHING ABOUT NEGATIVE TO HAVE A CONVERSATION ABOUT IT.

MISS LUNA, ANYTHING? ACTUALLY, I'VE HAD A 5050 MIX.

I'VE HAD FOLKS WHO YOUNG MOTHERS, PARENTS, ELDERLY WHO DURING COVID, I MEAN, IT WAS A GODSEND, EXCEPT THEY KEPT GOING TO OCEANSIDE AND THEY KEPT GOING TO VISTA.

THEY KEPT GOING TO, YOU KNOW, OTHER CITIES.

AND I'M LIKE, WOW, THEY'RE GETTING ALL THE REVENUE AND CARS HAVE CHANGED NOW AS FAR AS AIR QUALITY.

AND SO I KNOW A LOT OF FOLKS FROM THE ELDERLY AS TO YOUNG MOTHERS AND YOUNG FATHERS, FAMILIES COMING FROM SOCCER GAMES AND WHATNOT ARE LIKE, IT'S, YOU KNOW, THEY'RE GOING THEY'RE THEY'RE SAYING, WHY DON'T WE HAVE THIS OVER HERE, OR WHY DON'T WE HAVE THAT OVER HERE? SO. I'M SORRY, COUNCIL MEMBER, I DON'T MEAN TO INTERRUPT, BUT THE MOTION IS REALLY TO BRING BACK AN ITEM.

SO I'VE HAD MIXED I'VE HAD MIXED EMOTIONS.

I'VE HAD MIXED COMMENTS.

SO, OKAY, I'M GOING TO SUPPORT THE IDEA BECAUSE I'M CURIOUS TO HEAR WHAT WHAT CAUSED THE ORIGINAL CODE AND THEN TO HEAR WHAT SOME OF THE PROS AND CONS ARE.

MISS BHAT-PATEL. YES, AND PERHAPS SIMILAR TO HOW WHEN WE HAVE LEGISLATION GO THROUGH THE LEGISLATIVE SUBCOMMITTEE, SINCE THIS IS SOMETHING WITH REGARDS TO ECONOMIC DEVELOPMENT, PERHAPS ONCE IT GOES TO PLANNING COMMISSION, IT COULD GO TO THE ECONOMIC DEVELOPMENT SUBCOMMITTEE, AND THEN IT CAN COME BACK TO THE COUNCIL.

EXCUSE ME, DOES THAT NEED TO BE REFLECTED IN THE MOTION? BECAUSE THAT WASN'T WHAT I SAID.

IF YES, IT WOULD NEED TO BE REFLECTED IN THE MOTION.

THAT'S FINE WITH ADDING THAT IN.

OKAY. WE HAVE A MOTION AND A SECOND.

PLEASE VOTE. PASSES UNANIMOUSLY.

MR. STRONG, ARE YOU CLEAR? I'M SORRY. YOU DON'T LOOK CLEAR.

WE'RE CLEAR. IN ADDITION TO THAT MOTION, THERE'S ALSO THE STAFF REPORT RECOMMENDATION.

THANK YOU. BRING US BACK AROUND TO THE BEGINNING HERE.

MISS BHAT-PATEL. YES.

MOVE STAFF RECOMMENDATIONS TO ADOPT BOTH RESOLUTIONS.

SECOND. PLEASE VOTE.

PASSES UNANIMOUSLY.

THANK YOU FOR BRINGING US BACK, I GOT DISTRACTED.

[5. ANNUAL WORK PLAN FOR THE COMMUNITY-POLICE ENGAGEMENT COMMISSION]

OKAY. THANK YOU SO MUCH. ITEM NUMBER FIVE IS THE ANNUAL WORK PLAN FOR THE COMMUNITY POLICE ENGAGEMENT COMMISSION MAKING.

OUR PRESENTATION TODAY IS OUR LEGISLATIVE AND CONSTITUENT SERVICES DIRECTOR, SHEILA COBIAN.

SHEILA.

GOOD EVENING, MAYOR AND COUNCIL MEMBERS.

MY NAME IS SHEILA COBIAN, YOUR LEGISLATIVE AND CONSTITUENT SERVICES DIRECTOR AND ALSO THE STAFF LIAISON TO THE COMMUNITY POLICE ENGAGEMENT COMMISSION.

THE CITY COUNCIL ESTABLISHED THE COMMUNITY POLICE ENGAGEMENT COMMISSION TO PROMOTE MUTUAL UNDERSTANDING AND TRUST BETWEEN THE POLICE DEPARTMENT AND THE COMMUNITY BY PROVIDING AN INCLUSIVE AND RESPECTFUL FORUM THAT FOSTERS INFORMED DIALOG.

COUNCIL APPOINTED MEMBERS TO THE COMMISSION IN THE SPRING OF 2023, AND THE COMMISSION HAS MET FIVE TIMES SINCE THEN.

CARLSBAD MUNICIPAL CODE REQUIRES THAT EACH OF THE CITY'S COMMISSIONS ESTABLISH AN ANNUAL WORK PLAN OF ACTIVITIES TO BE UNDERTAKEN, AND A SUBSEQUENT REPORT FOR ACCOMPLISHMENTS.

THE PURPOSE OF ESTABLISHING A WORK PLAN IS TO ENCOURAGE INCREASED DIALOG BETWEEN THE COMMISSION AND THE CITY COUNCIL.

IT ALSO IS INTENDED TO ENSURE THAT THE CITY'S BOARDS AND COMMISSIONS ARE WORKING IN LINE WITH THE PROPER PRIORITIES OF THE CITY COUNCIL.

MEMBERS OF THE COMMUNITY POLICE ENGAGEMENT COMMISSION PARTICIPATED IN FACILITATED WORKSHOPS LED BY COMMUNICATION AND ENGAGEMENT DIRECTOR CHRISTINA RAY, ON FEBRUARY 26TH AND MARCH 25TH TO ESTABLISH ITS FIRST WORK PLAN.

AT THEIR MARCH 25TH WORKSHOP, THE COMMISSION UNANIMOUSLY ACCEPTED ITS WORK PLAN AND RECOMMENDED THAT IT BE APPROVED BY THE CITY COUNCIL.

[00:45:10]

COMMISSIONERS DISCUSS THE ELEMENTS OF THE COMMISSION'S PURPOSE WITH A FOCUS ON THE KEY CONCEPTS THEY THOUGHT SHOULD BE HIGHLIGHTED IN A MISSION STATEMENT.

THESE INCLUDED TRANSPARENCY AND TRUST, ENHANCED COMMUNICATION AND OUTREACH, CHAMPIONING CARLSBAD AND ITS POLICE DEPARTMENT RESPECT AND THEN ENCOURAGE COMMUNITY ENGAGEMENT.

BASED ON THE CONCEPT AND THEMES, THE COMMISSION CREATED THE MISSION STATEMENT THAT'S ON THE SCREEN.

IT READS, THE MISSION OF THE CITY OF CARLSBAD COMMUNITY POLICE ENGAGEMENT COMMISSION IS TO PROMOTE MUTUAL UNDERSTANDING AND TRUST BETWEEN THE POLICE DEPARTMENT AND THE COMMUNITY THROUGH AN INCLUSIVE AND RESPECTFUL FORUM THAT FOSTERS INFORMED DIALOG TO CARRY OUT THE DUTIES DELEGATED TO THE COMMISSION BY THE CARLSBAD CITY COUNCIL.

COMMISSIONERS FOCUSED THEIR WORK PLAN GOALS AROUND ESTABLISHING BEST PRACTICES AND FOUNDATIONAL ELEMENTS THAT WOULD SET THE COMMISSION UP FOR LONG TERM SUCCESS.

THE COMMISSION ULTIMATELY IDENTIFIED TWO GOALS AND SEVEN TASKS FOR ITS FIRST WORK PLAN.

GOAL ONE IS TO ESTABLISH BEST PRACTICES FOR COMMISSION TRAINING, COMMUNICATION, DELIBERATION, AND OPERATIONS.

THE COMMISSION IDENTIFIED SIX TASKS IN SUPPORT OF THE GOAL.

THE TASKS RANGE FROM COMPLETING THE MANDATED TRAINING THAT WAS INCLUDED IN THE ORDINANCE ESTABLISHING THE COMMISSION TO DEVELOPING AND MAINTAINING AN ONGOING, PRIORITIZED LIST OF FUTURE MEETING TOPICS.

GOAL TWO IS TO RAISE AWARENESS ABOUT THE COMMISSION IN THE COMMUNITY.

THE COMMISSION WILL IDENTIFY TOPICS THAT WOULD BE OF MOST INTEREST TO THE COMMUNITY, AND REQUEST THAT CITY STAFF SHARE A SUMMARY OR VIDEO LINK THROUGH ITS COMMUNICATION CHANNELS.

IN ADDITION, THE COMMISSIONERS ARE ENCOURAGED TO SHARE LINKS WITHIN THEIR OWN COMMUNICATION CHANNELS, SUCH AS EMAILS TO FRIENDS OR POSTING ON SOCIAL MEDIA.

STAFF IS RECOMMENDING THAT THE CITY COUNCIL ADOPT THE RESOLUTION APPROVING THE WORK PLAN FOR FISCAL YEAR 2024-25.

THAT CONCLUDES MY PORTION OF THE PRESENTATION.

NOW, I'D LIKE TO INTRODUCE VICE CHAIR OF THE COMMISSION, MICHAEL ZEPEDA.

MR. ZEPEDA. THANK YOU, MISS COBIAN.

AS MISS COBIAN SAID, MY NAME IS MICHAEL ZEPEDA.

I'M THE VICE CHAIR OF THE COMMUNITY POLICE ENGAGEMENT COMMISSION, AND IN FACT, WE HAVE MET FIVE TIMES, THIS BEING OUR INAUGURAL YEAR.

IT SEEMS LIKE WE'VE BEEN GETTING READY TO GET READY NOW FOR ABOUT FIVE, FIVE MEETINGS NOW.

AND IN THAT TIME WE'VE RECEIVED SOME GREAT PRESENTATIONS REGARDING THE CITY'S HOMELESS ACTION PLAN.

WE'VE RECEIVED CURRENT AND FUTURE POLICE DEPARTMENT POLICIES SUCH AS THE SURVEILLANCE CAMERA USE, AND WE'VE ALSO RECEIVED THE DEPARTMENT'S STRATEGIC PLAN. AND WE HAVE BEEN VERY APPRECIATIVE OF THE THOROUGHNESS AND THE PREPARATION THAT STAFF HAS PUT IN IN MAKING THESE PRESENTATIONS TO US.

AND WE'RE EXCITED TO HAVE OUR FIRST WORK PLAN.

THAT TOOK SOME WORK FOR LACK OF A BETTER TERM.

AND WE'RE EAGER TO GET TO WORK ON IT AND AND ACT ON THE GOALS AND THE TASK THAT WE SET.

I THIS IS THE BRIEFEST COMMISSION REPORT YOU'RE GOING TO GET TODAY BECAUSE IT IS SO NEW.

SO I WOULD LIKE TO VOICE MY APPRECIATION TO MAYOR AND CITY COUNCIL MEMBERS FOR THE OPPORTUNITY TO TO REPRESENT THIS COMMISSION AND TO BE ON THIS COMMISSION. I THINK I'M I THINK I SPEAK FOR THE ENTIRE COMMISSION THAT WE LOOK FORWARD TO BEING A VALUE TO YOU IN THE FUTURE.

AND WITH THAT, I'D BE HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE.

QUESTIONS FROM COUNCIL.

COMMENTS FROM COUNCIL.

DO YOU HAVE ANY SPEAKERS? OH, SORRY, MISS BHAT-PATEL.

SURE. THANK YOU.

THANK YOU, MISS COBIAN.

AND OF COURSE, MR. ZEPEDA, FOR BEING ON THIS.

I REALLY APPRECIATE IT.

I THINK, YOU KNOW, THIS IS DEFINITELY SOMETHING THAT ENCOMPASSES OUR VALUES AS A CITY ABOUT COMMUNITY POLICING AND MAKING SURE THAT OUR COMMUNITY IS ENGAGED IN THESE DISCUSSIONS, AND WE'RE VERY MUCH INTO MAKING SURE THAT WE ARE TRANSPARENT WITH WHAT'S GOING ON.

AND I THINK THAT YOU ALL ARE REALLY GREATLY APPRECIATED IN TERMS OF THE VOLUNTEERISM THAT YOU'RE PROVIDING, TO MAKE SURE THAT IF THERE IS ANYTHING THAT WE CAN RECEIVE FEEDBACK ON, OR IF THERE ARE ANY SUGGESTIONS THAT YOU ALL CAN PROVIDE THAT.

BUT LOOKING FORWARD TO HEARING MORE UPDATES, AS YOU SAID, IT'S NEW.

AT THE SAME TIME, I REALLY AM GLAD THAT WE HAVE THIS WORK PLAN IN FRONT OF US AND WE KNOW WHAT YOU ALL WILL BE WORKING ON IN THE FUTURE.

SO THANK YOU AGAIN. YOU'RE WELCOME.

MISS BURKHOLDER.

I WAS JUST GOING TO SAY THANK YOU.

MICHAEL, I KNOW THIS IS NEW, AND I THINK JUST BY KNOWING THE THE MAKEUP OF THE COMMISSION, I DO THINK THAT YOU ALL WORK VERY NICELY TOGETHER AND YOU EACH BRING SOMETHING TO THE TABLE THAT'S A LITTLE BIT DIFFERENT.

SO I APPRECIATE THAT.

AND, YOU KNOW, THERE ARE A LOT OF WAYS THIS COULD GO SIDEWAYS BASED ON JUST THE NATURE OF THE COMMISSION ITSELF.

BUT YOU GUYS ARE DOING A GREAT JOB KEEPING IT IN LINE AND SHARING POSITIVE THINGS AND IMPACTING THE COMMUNITY.

[00:50:05]

THANK YOU TO THE OTHER COMMISSIONERS.

I'D BE HAPPY TO DO THAT. YEAH, I THINK WE HAVE VERY MUCH A CONSENSUS BUILDING COMMISSION, AND I THINK THAT'S GOING TO BE REFLECTED IN, IN THE COMMUNICATION THAT WE HAVE WITH YOU GOING FORWARD. YEAH.

MS. ACOSTA.

THANK YOU. I THOUGHT YOU WERE GOING DOWN THE LINE AND YOU SKIPPED ME.

BUT I ALSO WANT TO SAY THANK YOU TO BOTH OUR STAFF AND THE COMMISSIONERS.

WHEN I JOINED THE COUNCIL, THERE WAS ALREADY THE THE DECISION HAD BEEN MADE TO HAVE A COMMISSION, BUT WE DIDN'T KNOW WHAT IT WAS GOING TO LOOK LIKE.

SO WE WERE STILL KIND OF HEARING FROM THE CONSULTANT AND DECIDING ON THE THE SHAPE, THE FORM, THE WORK OF THE COMMISSION.

AND IT SOUNDS LIKE IT'S GOING REALLY WELL BECAUSE WE GAVE SOME DIRECTION, BUT WE ALSO LEFT A LOT TO YOU ALL TO HELP FINISH THE THAT WORK, THE SCOPE OF WORK THAT WE'RE PUTTING TOGETHER.

SO THANK YOU VERY MUCH FOR DOING WHAT YOU'RE DOING.

AND IT SOUNDS LIKE IT'S VERY SUCCESSFUL.

YEAH. MISS LUNA.

ANYTHING? SURE.

THANK YOU. IF I COULD ADD ONE, ONE MORE THING, MAYOR.

SO WE'VE HAD THESE FIVE MEETINGS AND WE'VE HAD NO COMMENTS TO DATE.

WE'VE HAD ONE PARTICULAR MEMBER THAT DOES SEEM TO JOIN A COMMUNITY MEMBER THAT DOES SEEM TO JOIN US AND HAS MADE A A COMMENT TO DATE.

I WOULD ASK THAT YOU SPEAK TO YOUR CONSTITUENTS TO REMIND THEM THAT THIS THIS COMMISSION IS AVAILABLE TO THEM, BECAUSE WHILE WE WANT TO BE A VOICE FOR YOU, I DON'T SEE THAT OUR ROLE IS ONE OF ADVOCACY TO GO OUT AND ASK PEOPLE TO BECOME COMMENTERS ON THE COMMISSION.

SO SOMETHING THAT, IF I MAY IN MY ROLE, ENCOURAGE YOU TO REACH OUT TO YOUR CONSTITUENTS.

I THINK THAT'D BE GREAT. WHEN THIS WAS FIRST DISCUSSED I DIDN'T KNOW HOW IT WOULD BE RECEIVED BY THE POLICE OFFICERS ASSOCIATION OR BY THE POLICE CHIEF.

IT WAS THEN NEIL GALLUCCI, AND I WAS SURPRISED TO HEAR THEM SUPPORT IT.

NO GROUP WANTS TO BE SECOND GUESSED, BUT THEY ALL CAME TO ME AND SAID, OH, WE'RE SO PROUD OF THE WORK WE DO.

WE WE WELCOME THE COMMENTS, WE WELCOME THE COMMISSION.

AND THAT WAS REFRESHING.

AND I REALLY APPRECIATED THAT.

AND I THINK AS A RESULT OF WHAT WE'RE SEEING, THE COMMUNITY ALSO BELIEVES THE SAME THING THAT OUR POLICE OFFICERS AND OUR POLICE CHIEF BELIEVE ABOUT OUR POLICE DEPARTMENT.

SO THANK YOU FOR DOING WHAT YOU'RE DOING.

I WOULD AGREE WITH YOU WHOLEHEARTEDLY.

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

THANK YOU SO MUCH.

DO WE HAVE A MOTION ON THIS? MOVE STAFF RECOMMENDATION.

SECOND. PLEASE VOTE.

PASSES UNANIMOUSLY.

ITEM SIX. CITY MANAGER.

[6. ACQUISITION OF REAL PROPERTY AT 945 CHESTNUT AVENUE FROM SOLUTIONS FOR CHANGE, CONSIDERATION OF A REQUEST FOR PROPOSALS TO IDENTIFY A NEW OWNER FOR THE CONTINUED USE OF PROPERTY AS AN AFFORDABLE HOUSING PROJECT AND DECLARATION OF THE PROPERTY TO BE EXEMPT SURPLUS LAND]

CONSIDERATION OF A REQUEST FOR PROPOSALS TO IDENTIFY A NEW OWNER FOR THE CONTINUED USE OF THE PROPERTY AS AN AFFORDABLE HOUSING PROJECT, AND DECLARATION OF THE PROPERTY TO BE EXEMPT.

SURPLUS LAND MAKING.

OUR PRESENTATION TONIGHT IS OUR HOUSING AND HOMELESS SERVICES DIRECTOR, MANDY MILLS.

MANDY. GREAT.

THANK YOU. GOOD EVENING, MAYOR AND COUNCIL MEMBERS.

MY NAME IS MANDY MILLS, DIRECTOR OF HOUSING AND HOMELESS SERVICES.

AND THIS EVENING I'LL BE PRESENTING SEVERAL ACTIONS RELATED TO THE ACQUISITION AND RESALE OF REAL PROPERTY AT 945 CHESTNUT AVENUE, A 16 UNIT AFFORDABLE HOUSING APARTMENT COMPLEX KNOWN AS CHESTNUT APARTMENTS, CURRENTLY OWNED BY SOLUTIONS FOR CHANGE.

I'LL START WITH A SHORT BACKGROUND ON THE PROJECT.

THEN WE'LL REVIEW THE TERMS OF THE PURCHASE AND SALE AGREEMENT, THE SOLICITATION FOR A NEW OWNER OF THE PROPERTY FOR CONTINUED USE AS AFFORDABLE HOUSING THROUGH A REQUEST FOR PROPOSALS, AND THEN THE PROCESS TO DECLARE THE PROPERTY TO BE EXEMPT SURPLUS LAND.

SO FOR BACKGROUND, CHESTNUT APARTMENTS IS LOCATED ON CHESTNUT AVENUE, JUST WEST OF THE I-5 FREEWAY, AND CONSISTS OF THREE SEPARATE APARTMENT BUILDINGS WITH A TOTAL OF 16, ONE AND TWO BEDROOM UNITS.

THE BUILDINGS WERE ORIGINALLY CONSTRUCTED IN 1975 OF WOOD FRAME CONSTRUCTION WITH STUCCO AND WOOD FASCIA.

IN 2014, THE CITY PROVIDED A $3.1 MILLION LOAN TO SOLUTIONS CHESTNUT, LLC, WHICH IS THE SUBSTANTIVE SUBSIDIARY OF SOLUTIONS FOR CHANGE INCORPORATED TO ACQUIRE THE CHESTNUT APARTMENTS TO PROVIDE AFFORDABLE HOUSING FOR HOMELESS FAMILIES.

THE PROJECT WAS TO INCLUDE THE RELOCATION OF EXISTING TENANTS AND MINOR RENOVATION OF THE UNITS IN THE FIRST YEAR, WITH PERMANENT FINANCING TO BE OBTAINED WITHIN THE FIRST THREE YEARS TO FUND A MAJOR REHABILITATION OF THE ENTIRE DEVELOPMENT.

THE LOAN DOCUMENTS RECORDED AGAINST THE PROPERTY REQUIRED THE DEVELOPER TO OBTAIN THE PERMANENT FINANCING.

[00:55:01]

SINCE THAT TIME, THE PROJECT HAS BEEN OPERATING WITH THE EXISTING TENANTS AS OF WITH AFFORDABLE RENTS SINCE THAT ACQUISITION IN DECEMBER OF 2014.

SOLUTIONS FOR CHANGE IS NOW LOOKING TO END ITS OWNERSHIP OF THE PROPERTY AND IS PROPOSING TO TRANSFER THE PROPERTY TO THE CITY OF CARLSBAD IN EXCHANGE FOR HAVING THE LOAN FORGIVEN SO THE PROJECT CAN CONTINUE TO PROVIDE AFFORDABLE HOUSING.

SOLUTIONS FOR CHANGE WILL TRANSFER OWNERSHIP OF THEIR PROPERTY TO THE CITY IN LIEU OF REPAYMENT OF THE LOAN.

THEREFORE, THE SALES PRICE IS THE LOAN BALANCE.

THE OUTSTANDING LOAN AMOUNT FOR THE HOUSING TRUST FUND LOAN PORTION IS APPROXIMATELY $2.97 MILLION.

THIS INCLUDES PRINCIPAL AND OUTSTANDING INTEREST ANTICIPATED AT THE END OF THIS CALENDAR YEAR.

THIS ACTION WOULD CANCEL THE LOAN AND REMOVE THE EXISTING DEED OF TRUST FROM THE TITLE FOR THE PROPERTY.

NO ADDITIONAL PAYMENTS BY SOLUTIONS FOR CHANGE AGAINST THE LOAN WILL BE REQUIRED.

SOLUTIONS FOR CHANGES WILLING TO MAINTAIN THE PROPERTY UNTIL THE END OF THE CALENDAR YEAR, AND THIS EXTENDED ESCROW PERIOD WILL ALLOW CITY STAFF ADEQUATE TIME TO SOLICIT PROPOSALS TO IDENTIFY A NEW OWNER FOR THE PROJECT.

SO TOWARD THAT END, STAFF ARE RECOMMENDING THAT THE CITY COUNCIL ALSO ADOPT A RESOLUTION AUTHORIZING A THE RELEASE OF A REQUEST FOR PROPOSALS FROM QUALIFIED AFFORDABLE HOUSING DEVELOPERS WITH THE INTENT TO IDENTIFY A NEW OWNER TO EITHER ACQUIRE AND REHABILITATE THE EXISTING AFFORDABLE UNITS, OR TO DEMOLISH AND REBUILD A NEW 100% AFFORDABLE HOUSING PROJECT WITH POTENTIALLY MORE UNITS.

THE DROP REQUEST IS PROVIDED AS ATTACHMENT A, EXHIBIT TWO IN YOUR STAFF REPORT.

THE SUBMISSION PERIOD WILL CLOSE THIS SUMMER, AND CITY STAFF WILL PRESENT THE CITY COUNCIL WITH RECOMMENDATIONS FOR THE FUTURE OWNER AND USE FOR THE CITY COUNCIL'S APPROVAL AFTER PROPOSALS ARE EVALUATED BEFORE THE PROPERTY CAN BE TRANSFERRED TO A NEW FUTURE OWNER.

THE CITY COUNCIL REVIEW WILL REVIEW AND APPROVE THE TERMS AND SALE OF THAT NEW AGREEMENT, ALONG WITH A NEW 55 YEAR REGULATORY AGREEMENT AND LOAN AGREEMENT.

IN THE INTERIM PERIOD, THE PROPERTY WILL CONTINUE TO BE USED AS A 100% AFFORDABLE HOUSING PROJECT.

THE A REGULATORY AGREEMENT IS CURRENTLY RECORDED AGAINST THE PROPERTY.

SO RIGHT NOW 15 UNITS ARE PROVIDED AS AFFORDABLE HOUSING.

BECAUSE THE PROPERTY WILL BE USED FOR AFFORDABLE HOUSING.

THE CITY CAN MAKE FINDINGS HERE TONIGHT TO DECLARE THE PROPERTY AS EXEMPT SURPLUS LAND.

THE PLANNED USE AS AFFORDABLE HOUSING MEETS THE MINIMUM AFFORDABILITY REQUIREMENTS IN THE SURPLUS LAND ACT.

A COPY OF THE RESOLUTION WILL BE SENT TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT.

SO A LITTLE BIT, AND ON THIS POTENTIAL TIMELINE.

SO THIS AUTHORIZATION IS APPROVED TONIGHT.

WE CAN RELEASE THAT REQUEST FOR PROPOSALS.

THEN WE WOULD BE RECEIVING THOSE PROPOSALS IN JULY.

WE WOULD BE IN AUGUST HAVING A STAFF COMMITTEE REVIEW AND RANK THOSE PROPOSALS AND GO COME BACK TO THE CITY COUNCIL IN SEPTEMBER TO APPROVE A NEW DEVELOPER. THEN WE WOULD BE A NEGOTIATING LOAN TERMS. WE HAVE A HOUSING POLICY TEAM THAT WOULD REVIEW THAT DEAL AS WELL AS THE HOUSING COMMISSION.

SO THAT WOULD GO TO THEM IN THE FALL AS WELL.

AFTER THE HOUSING COMMISSION WOULD REVIEW AND RECOMMEND APPROVAL, THEN WE WOULD BE COMING BACK AGAIN TO THE CITY COUNCIL TO REVIEW LOAN TERMS FOR THAT DEVELOPER AND FINAL PROJECT.

THERE'S NO FISCAL IMPACT FOR THIS TRANSACTION TO THE GENERAL FUND IN EXCHANGE FOR LOAN FORGIVENESS, OWNERSHIP OF THE PROPERTY IS BEING CONVEYED TO THE CITY, AND THE VALUE OF THE PROPERTY IS CREDITED AS AN ASSET TO THE HOUSING TRUST FUND.

THERE ARE MINOR COSTS ASSOCIATED WITH A PROPERTY TRANSFER, INCLUDING ESCROW AND TITLE, AND THESE COSTS ARE GOING TO BE FUNDED FROM THE HOUSING TRUST FUND.

SO THERE ARE THREE SEPARATE RECOMMENDED ACTIONS THIS EVENING RELATED TO THE ACQUISITION.

THE FIRST WAS SOLUTION AUTHORIZES THE EXECUTION OF DOCUMENTS RELATED TO THE ACQUISITION OF THE PROPERTY FROM SOLUTIONS FOR CHANGE.

THE SECOND RESOLUTION AUTHORIZES THE ISSUANCE OF A REQUEST FOR PROPOSALS TO IDENTIFY A NEW OWNER FOR CONTINUED USE OF THE PROPERTY AS AFFORDABLE HOUSING, AND THE THIRD RESOLUTION DECLARES THE PROPERTY TO BE EXEMPT SURPLUS LAND BASED ON FINDINGS THAT MEET THE REQUIREMENTS OF THE CALIFORNIA GOVERNMENT CODE.

[01:00:12]

GOOD EVENING, MAYOR, CITY COUNCIL MEMBERS.

GOOD TO SEE YOU.

32 YEARS AGO, STANDING IN THIS EXACT SPOT RIGHT HERE AND I REMEMBER LOOKING UP AT THAT SIGN AND I HAD JUST GOTTEN OUT OF THE MARINE CORPS AFTER THE FIRST GULF WAR AND SAID TO MYSELF, THAT'S INTEGRITY, YOU KNOW? I'VE HELPED A LOT OF HOMELESS PEOPLE OVER THESE LAST THREE DECADES.

AND A LOT FROM CARLSBAD.

WHEN I STARTED DOING THIS WORK THIS NINE YEAR OLD GIRL YANKED ON MY SLEEVE ONE NIGHT AT A WINTER SHELTER, AND SHE ASKED ME THIS REALLY SWEET, INNOCENT VOICE IF I LIVED IN THE SHELTER, TOO, WITH MY WIFE AND MY TWO TEENAGE BOYS WHO WERE HELPING OUT.

AND I GOT DOWN ON ONE KNEE AND I SAID, YOU KNOW WHAT, SWEETHEART, I DON'T LIVE HERE, BUT WE'RE GOING TO GET YOU OUT OF HERE AND GET YOU BACK INTO A HOME.

AND I LOOKED OVER AT HER MOM, WHO WAS LAYING ON THE FLOOR AND A HALF INCH THICK MAT, AND SHE WAS A METH ADDICT, AND I REALIZE THAT IF WE DON'T HELP THAT PARENT, THAT KID IS GOING TO END UP IN THE SYSTEM.

AND SO THE ENTIRE MISSION, OUR PURPOSE IS FOCUSED ON THOSE KIDS.

IF WE DON'T GET THOSE KIDS OUT OF THE HORRIBLE CONDITIONS THAT THEY'RE LIVING IN THEY END UP IN A SYSTEM WITHOUT THEIR PARENTS. AND SO THAT WAS MY PROMISE TO YOU BACK THREE DECADES AGO.

AND THE GOOD NEWS IS THAT PROMISE HAS NOT CHANGED.

THAT PROMISE IS THE SAME PROMISE THAT I MADE.

THE BAD NEWS IS, IS THAT A LOT HAS CHANGED IN THE LAST THREE DECADES, AND IT'S A RESULT OF THAT CHANGE.

WHY I'M SITTING HERE TODAY.

WE'RE ALL HERE TODAY, AND WE'RE HAVING TO RELINQUISH A BEAUTIFUL ASSET THAT YOU HELPED US DO.

AND I WANT TO SAY THIS, THAT 15 YEARS AGO, THIS BODY, THIS ELECTED BODY WITH YOUR MAYOR.

HE GOT TOGETHER WITH FIVE OTHER MAYORS, AND HE CHALLENGED THE ENTIRE NORTH COUNTY REGION TO GET MORE DRUG FREE HOUSING FOR THOSE FAMILIES, BECAUSE WE WERE HELPING A TON OF FAMILIES IN OUR MAIN CAMPUS IN VISTA, BUT THEY COULDN'T GET INTO AFFORDABLE HOUSING.

THERE WAS NO WE COULDN'T GET THEM OUT THE BACK DOOR BECAUSE BECAUSE OF YOU, CARLSBAD, YOU GUYS WERE AMAZING.

YOU CHALLENGED THE WHOLE REGION TO STEP UP AND THEY DID.

WE DEVELOPED 300,000FT² OF REAL ESTATE IN SEVEN CITIES.

THIS IS THE FIFTH ONE OVER THE LAST THREE YEARS THAT WE'VE HAD TO GIVE UP AS A RESULT OF THIS HOUSING FIRST LAW, THAT IS DECIMATING THIS CITY AND A LOT OF CITIES AROUND SAN DIEGO COUNTY.

I'M SORRY WE COULDN'T GET THIS DONE AFTER, YOU KNOW, YOU DECIDED TO BE THE LAST OF THE FIVE CITIES.

SO EVERYBODY ELSE GOT THEIR STUFF DONE.

AND THE MAYOR BACK THEN SAID, WE'LL BE LAST.

AND I WAS GETTING HUGE AMOUNTS OF PUBLIC MONEY FROM THE COUNTY AND THE STATE.

WE WERE WINNING WITH NO PROBLEM AND THEN IT WAS DENY.

WHY? BECAUSE MEGASIN, YOU WON'T COMPLY WITH HOUSING FIRST.

TRY IT AGAIN. DENY.

WHY? BECAUSE WE WOULD NOT DO DRUG ALLOWED HOUSING FOR THESE KIDS.

AND SO WE, I LIVED THAT FOR YOU.

IT'S A SHAME.

IT REALLY IS.

THIS GUY OVER HERE IS CITY MANAGER, MAN.

I WANT TO THANK HIM AND MANDY AND GARY, YOU KNOW.

I KNOW THEY DIDN'T LIKE ME SAYING, HERE'S ANOTHER EXTENSION REQUEST.

BUT YOU GAVE IT TO ME TO TRY TO GET IT DONE.

WE COULDN'T GET IT DONE.

WHAT IN THE HECK IS GOING ON? THESE ARE OUR KIDS.

THEY DESERVE DRUG FREE HOUSING, AND THEY'RE NOT GETTING IT.

THANK YOU. ANY QUESTIONS FROM COUNCIL? FIRST, DO WE HAVE ANY SPEAKERS? YES. JULIE AJUDAR.

ACCOUNTABILITY. SOME HAVE IT, SOME DON'T.

[01:05:03]

NEVER HAVE I SEEN ANY EVIDENCE THAT TENANTS STRUGGLES THERE WERE ANYTHING BUT FINANCIAL.

I SINCERELY THANK SOLUTIONS FOR CHANGE, FOR THE ACCOUNTABILITY THEY REQUIRE.

THIS SMALL SEGMENT OF A NEIGHBORHOOD HAS BEEN SATURATED WITH NO PLACE LIKE HOME HOUSING.

FIRST PROBLEMS THROUGH OUR CITY MANAGER ANDCCOUNCIL'S PAST ACTIONS.

THOROUGHLY SATURATED.

WHAT ABOUT EQUITABLY PLACING, REVIEWING AND APPROVING IN OTHER DISTRICTS CITIES AND DARE I SAY, GARDEN SPOTS LIKE POINT LOMA? WHAT WILL ANYBODY UP HERE DO DIFFERENTLY TONIGHT AND AT FUTURE MEETINGS REGARDING EVALUATING PROPOSALS FROM DEVELOPERS THAN YOU'VE DONE IN THE BARRIO LATELY? WHAT HAVE YOU LEARNED FROM WINDSOR POINT? HAVE YOU PAID ATTENTION TO THE CHANGES ESCONDIDO AND VISTA ARE DOING? AT THE VERY LEAST, NO MORE NO PLACE LIKE HOME HOUSING FIRST AT THIS BARRIO LOCATION.

WRITE THAT INTO ANY PROPOSAL TONIGHT.

WE DO NOT NEED ONE MORE GOVERNMENT RUN FREE FOR ALL DRUG FEST IN THIS NEIGHBORHOOD.

YOU CAN HAVE SOME ACCOUNTABILITY.

YOU CAN WRITE IT INTO A PROPOSAL.

DON'T CONSIDER A SINGLE PROPOSAL FROM A SINGLE DEVELOPER THAT DOES NOT REQUIRE ACCOUNTABILITY.

THOSE OF YOU WHO HAVE IT, I THANK YOU.

BRAD ROBBINS.

HI, I'M BRAD ROBBINS, A CARLSBAD RESIDENT.

I THINK ITEM SIX SHOULD NOT BE APPROVED IN ITS CURRENT FORM.

IT HAS SOME GOOD INTENTIONS IN IT, BUT IT'S LIKELY TO END UP COSTING MORE.

IT'S LIKELY TO NOT EXPAND AFFORDABLE HOUSING, AND IT'S GOING TO MAKE THE COMMUNITY UNHAPPY.

THE FUNDAMENTAL PROBLEM, AS YOU'VE HEARD, IS FUNDING.

TO GET FUNDING TO DO A SIGNIFICANT DEVELOPMENT IS GOING TO REQUIRE GOING TO THE COUNTY OR THE STATE AND GETTING HOUSING FIRST PRINCIPLE STRINGS ATTACHED.

WE KNOW WHERE THAT ENDS UP.

THAT ENDS UP IN ANOTHER WINDSOR POINT THAT WOULD BE BAD FOR THE COMMUNITY, WOULD BE BAD FOR CARLSBAD.

IT WOULD BE BAD AS WE LOOK AT A BUDGET THAT NEEDS TO GENERATE MORE REVENUE IN MAKING AN ATTRACTIVE CITY AND ONE THAT HAS INCREASING PROPERTY VALUES, NOT DECREASING. SOLUTIONS FOR CHANGE, I THINK HAS DONE A GREAT JOB AT RUNNING THE SITE.

IT HAS THE RIGHT PRINCIPLES.

THEIR PROBLEM IS FUNDING.

THE REASON WE APPEAR TO BE DOING THIS IS BECAUSE THEY HAVEN'T REPAID A $3 MILLION LOAN.

WELL, WHAT IS THE INTEREST ON THAT LOAN PER YEAR? WHAT WOULD IT COST US TO WAIT ANOTHER YEAR? $200,000? IS THAT WORTH IT TO DO IT RIGHT, AS OPPOSED TO ADOPT THIS PROPOSAL, WHICH IS VERY LIKELY TO COST US MORE BECAUSE WE'RE GOING TO TAKE THE BURDEN OVER, HAVE TO RUN IT AND OPERATE IT FOR A PERIOD OF TIME.

IF WE DON'T GET A DEVELOPER BY THE END OF DECEMBER.

IF WE DO RUSH AND GET A DEVELOPER WHO WILL HAVE TO GO TO HOUSING FIRST PRINCIPLES TO GET A LOAN, WE'RE GOING TO END UP WITH ANOTHER WINDSOR POINT.

IT'S JUST NOT WELL THOUGHT THROUGH RIGHT NOW.

I THINK THE CITY STAFF CAN DO BETTER.

I THINK WE CAN FIND A SOLUTION.

I WOULD PROPOSE ONE MORE THOUGHT, WHICH IS IF WE WANT CONTROL OVER OUR OWN DESTINY, WE MAY NEED TO CONSIDER FINDING WAYS TO FUND THE DEVELOPMENT THROUGH THE TOWN, THROUGH THE CITY.

IF THE PROPOSAL, ONE OF THE PROPOSALS IS NOT TO INCREASE THE DENSITY, I THINK IT SAYS POTENTIALLY INCREASE THE DENSITY, WHAT WOULD IT COST TO DO AN INCREMENTAL IMPROVEMENT TO THE SITE OR RENOVATION AND HAVE THE CITY KICK MORE MONEY IN TO FUND THAT AND DO THAT OVER A PERIOD OF TIME, AS OPPOSED TO DOING THIS, TAKE OVER THE BURDEN, FIND A DEVELOPER, AND THEN LIVE WITH THE OUTCOME THAT I THINK WILL MAKE THE COMMUNITY UNHAPPY.

ANYWAY, I DON'T THINK YOU SHOULD APPROVE IT.

THANK YOU. THERE ARE NO ADDITIONAL SPEAKERS.

QUESTIONS FROM COUNCIL.

MISS BURKHOLDER.

THANK YOU.

YES. THANK YOU.

MANDY. I'VE JUST GOT A COUPLE THINGS.

MR. ROBBINS COMMENT, WE'LL JUST GO TO THAT ONE FIRST SO I DON'T FORGET IT BECAUSE I COULDN'T WRITE IT DOWN.

WE THE CITY DOES MANAGE THE TYLER APARTMENTS, RIGHT? THAT'S CORRECT. WE OWN, WE DON'T MANAGE THEM.

WE HAVE A PROPERTY MANAGER.

AND WE'RE ABOUT TO OWN THIS BUILDING IF THIS PASSES.

SO WHAT'S THE DIFFERENCE AND WHY WE OWN TYLER?

[01:10:04]

SO SEEKING AN ADDITIONAL PROPERTY MANAGER WAS A LITTLE DIFFICULT FOR JUST 16 UNITS BECAUSE IT'S SUCH A SMALL COMPLEX.

SO THERE'S DEFINITELY A FINANCIAL BURDEN THERE.

AND IN ADDITION TO THAT, THERE ARE SOME REHABILITATION NEEDS FOR SURE ON THE PROPERTY.

AND SO THE DOLLAR AMOUNT TO REHAB THE UNITS WOULD DEFINITELY TAKE SOME INVESTMENT.

AND THEN OF COURSE, THERE'S JUST LIABILITY OF OWNING APARTMENTS AND HAVING TENANTS YOU KNOW, IN RESIDENTIAL UNITS.

SO YOU BECOME YOU'D HAVE TO INSURE THE PROPERTY AND MAKE SURE THAT YOU'RE NOT LIABLE FOR ANY DAMAGES OR ANY THING THAT WOULD OCCUR ON THE PROPERTY.

WELL, I MEAN I'M ASSUMING WE DO THAT ON TYLER STREET NOW.

RIGHT. WE HAVE INSURANCE AND WE ARE ACCEPTING THAT.

YEAH. AND HOW MANY UNITS ARE ON TYLER I CAN'T REMEMBER.

IT IS.. JUST FOR COMPARISON'S SAKE.

ABOUT 70 UNITS.

I ACTUALLY KNOCKED ON DOORS AT THIS APARTMENT COMPLEX HERE ON CHESTNUT, AND IT DEFINITELY NEEDS SOME SOME LOVE THERE.

IT SOUNDS LIKE SOLUTIONS HAS EXHAUSTED ALL THE FUNDING OPTIONS FOR THAT LOCATION, AND THAT THEY'RE IN A POSITION WHERE IT WOULD BE HELPFUL IF WE DID TAKE IT OVER.

YES. BUT WE DID WORK WITH SOLUTIONS FOR A LONG TIME TO SEE IF THERE WAS YOU KNOW, IF THEY WERE INTERESTED IN PURSUING MAINTAINING IT, NOT NECESSARILY FOR HOMELESS FAMILIES, BUT JUST FOR THE EXISTING RESIDENTS.

AND THAT REALLY IS OUTSIDE OF THEIR MISSION.

I DON'T WANT TO SPEAK FOR SPEAK FOR CHRIS, BUT YOU KNOW, THAT'S REALLY NOT THE MISSION OF SOLUTIONS FOR CHANGE IS JUST TO PROVIDE AFFORDABLE HOUSING.

AND SO TO MAINTAIN THE HOUSING WITH THE EXISTING RESIDENTS WAS NOT REALLY THE MISSION OF THEIR BOARD, AND TO RELOCATE THE EXISTING RESIDENTS WAS DEFINITELY A SIGNIFICANT COST BURDEN.

THAT WAS GOING TO BE MY NEXT THING.

THANK YOU. OKAY, SO I HEARD YOU SAY THAT THE TERMS AND SALE WOULD BE APPROVED BY THE COUNCIL.

WINDSOR POINT IS AROUND THE CORNER FROM THIS DEVELOPMENT HAVE GRAVE CONCERN THAT LIKE ONE OF THE SPEAKERS NOTED, THIS COULD BECOME ANOTHER WINDSOR POINT. SO WHAT WILL COUNCIL BE I GUESS INFORMED IF AN APPLICANT IS INTENDING AND APPLYING FOR NO PLACE LIKE HOME FUNDING, WHICH IS THE FUNDING THAT IS THE SAME THAT IS AT WINDSOR POINT, WHICH IS WHY THEY DON'T HAVE TO ABIDE BY ANY DRUG FREE HOUSING POLICY.

RIGHT? SO ALL THE DEAL POINTS OF ANY NEW TRANSACTION WOULD BE COMING BEFORE THE CITY COUNCIL.

OKAY. AND SO LET'S JUST SAY WE HAVE THREE BIDDERS FROM THE RFP, AND THEY ALL THREE WANT TO DO NO PLACE LIKE HOME FUNDING.

HOW WHAT'S OUR WHAT PROTECTIONS DO WE HAVE? HOW DO WE ADDRESS THAT? HOW DO WE SAY NO TO THAT? SO WE DO NOT HAVE TO CONSENT IF WE AS A AT THE CITY, AS THE IF THE CITY COUNCIL DOES NOT IF THEY'RE NOT INTERESTED IN ANY OF THE PROPOSALS THAT ARE BROUGHT FORWARD, WE DO NOT HAVE TO ACCEPT ANY OF THEM.

SO THE RFP ACTUALLY SAYS THAT IT'S NOT REQUIRED TO ACCEPT ANY PROPOSALS.

OKAY. AND THEN I NOTICED ON THE TIMELINE, IT'S SORT OF AT THE END OF THIS YEAR WHEN SOLUTIONS WILL NOT BE MAINTAINING THE PROPERTY ANYMORE.

AND SO IF WE DON'T FIND SOMEONE BY JANUARY, THEN WE'RE GOING TO BE ON THE HOOK FOR MAINTAINING THAT PROPERTY.

AND IF WE DON'T HAVE A MANAGEMENT COMPANY TO DO IT, HOW IS THAT GOING TO LOOK? NO, THAT IS CORRECT.

SO I MEAN, WE ARE IN A TIGHT TIMELINE FOR SURE.

I'LL PULL UP THE TIMELINE AGAIN.

SO THE GOAL IS TO BE BACK BEFORE YOU IN THE EARLY FALL, HOPEFULLY IN SEPTEMBER.

WITH IDENTIFICATION OF A NEW DEVELOPER.

IF WE DO NOT GET PROPOSALS THAT WE'RE SEEKING OUT OF THIS RFP, WE DEFINITELY WOULD BE COMING BACK WITH A, YOU KNOW, PLAN C, I WOULD SAY THIS ACTUALLY, IT REALLY IS PLAN B.

SO YEAH. YOU'RE RIGHT.

YEAH. OKAY.

AND I JUST WANT TO MAKE SURE THAT WE ARE WOULD YOU COMMIT TO NOT DOING BUSINESS WITH AFFIRMED BECAUSE OF THE DISASTER WINDSOR POINT IS, LIKE AS A CITY, COULD WE JUST SAY NO TO THAT? I DON'T EVEN KNOW IF THEY WOULD BE A BIDDER, BUT WHATEVER.

WELL, THE CITY COUNCIL WILL BE APPROVING THAT THE APPROVING A NEW DEVELOPER.

I HEAR THAT, BUT I JUST DON'T WANT STAFF TO WASTE ANY TIME WITH THEM AT ALL.

BUT THAT'S JUST BECAUSE OF WINDSOR POINT.

I DON'T THINK I HAVE ANY OTHER QUESTIONS, JUST COMMENTS.

AND I APPRECIATE, I APPRECIATE THE QUESTIONS FROM THE SPEAKERS.

[01:15:02]

SO I'M THINKING OF THE MONEY.

SO WE'RE GOING TO ASSUME SOME PROPERTY.

AND LET'S JUST SAY THAT I WAS JUST AT A SERVING ON ANOTHER BOARD, AND THEY REALLY COULD NOT GET ANYBODY TO DEVELOP SORT OF THIS TYPE OF SITUATION FOR SOBER LIVING.

SO LET'S JUST SAY WE DON'T FIND SOMEBODY.

WHAT IS THE COST? THE CARING COST FOR US, IF WE CAN'T SEAT, LET'S JUST SAY THE COUNCIL, I'M JUST BEING HYPOTHETICAL.

WHAT'S THE CARING COST? FOR EXAMPLE, IN JANUARY, I MEAN, MR. ROBBIN'S TESTIMONY SORT OF PIQUED MY INTEREST AS FAR AS IF OUR CARING COSTS ARE BIG ENOUGH, THEN WHY CAN'T WE JUST BRIDGE THE EXISTING FACILITY AS IT IS UNTIL WE FIND SOMEBODY SUITABLE? WELL, THAT IS, I THINK, WHAT WE'RE PROPOSING.

SO THE WE ASKED SOLUTIONS FOR CHANGE IF THEY WOULD BE WILLING TO MAINTAIN A PROPERTY THROUGH DECEMBER AND THEY DID SAY YES.

SO THAT DOES ALLEVIATE THAT STEP OF HAVING THAT INTERIM OWNERSHIP.

IF WE DO NOT SECURE ANOTHER OWNER BY DECEMBER, THEN WE WOULD HAVE TO YOU KNOW, TAKE THAT POSITION OF INTERIM OWNERSHIP AND THEN THERE WOULD BE THE CARRYING COSTS.

WE ANTICIPATE THAT THE RENT LEVELS, WHILE THEY ARE LOW INCOME, ARE ENOUGH TO PAY THE OPERATING COSTS.

THEY'RE JUST ARE THE SIGNIFICANT REHABILITATION COSTS THAT ARE INVOLVED IN LONG TERM OWNERSHIP.

SO IF I'M TO UNDERSTAND YOU CORRECTLY, AS OF DECEMBER CHRIS IS THEY'RE GONE.

THEY ARE GONE. THIS IS THE END.

REGARDLESS. OKAY.

WHAT ARE WE DOING? HOW ARE WE MATRICULATING THOSE TENANTS IN OR OUT? I'M SORRY, AND IN JANUARY.

ARE WE. THEY JUST GET TO STAY.

NO. THE EXISTING TENANTS I JUST WANT TO MAKE.

OKAY. OKAY.

SO THE EXISTING TENANTS REALLY HAVE BEEN THERE..

FOR THE NEW LANDLORD..

WITH A NEW LANDLORD. CORRECT.

SO SOLUTIONS FOR CHANGE ACTUALLY WAS IN THE SAME SITUATION.

SO THEY ACQUIRED THAT BUILDING WITH THOSE TENANTS AND YOU KNOW, NOTICES WERE GIVEN INFORMING THEM OF NEW OWNERSHIP.

AND IT'S IT WOULD BE THE SAME THING.

OKAY. THANK YOU MANDY.

ARE THE RESIDENTS IN THERE NOW ALL SOLUTIONS FOR CHANGE RESIDENTS? NO, THEY WERE THE TENANTS THAT WERE IN THE APARTMENTS WHEN SOLUTIONS FOR CHANGE ACQUIRED THE BUILDING.

AND THERE'S BEEN NO TURNOVER THERE.

ONE TENANT. REALLY? IN TEN YEARS? ONE TENANT.

IT'S A GOOD SPOT AND IT'S A GOOD RENT.

SO YEAH.

OKAY. SO SOLUTIONS FOR CHANGE ISN'T REALLY BENEFITING OTHER THAN ONE RESIDENT.

SO TO TALK THEM INTO CONTINUING TO MANAGE IT EVEN PAST DECEMBER IF IT TAKES US A COUPLE OF EXTRA MONTHS, WAS THAT A DISCUSSION WHEN YOU GUYS TALKED ABOUT IT? I THINK I'LL INVITE MR. MEGGISON TO THE PODIUM, MAYBE TO ANSWER THAT QUESTION.

I DON'T MEAN TO PUT YOU ON THE SPOT. I'M ASKING, WAS IT DISCUSSED? SHE HAD TO TWIST, MANDY HAD TO TWIST MY ARM A LITTLE BIT TO GET US TO AGREE TO IT.

I MEAN, THIS IS NOT IN OUR MISSION AND WE'VE BEEN MANAGING IT FOR SEVEN YEARS, AND WE DON'T DO THAT IN ANY OTHER PROJECT.

BUT, YOU KNOW, WE'RE SO SHE ASKED IF WE COULD DO IT AND THE BOARD SAID NO.

AND I SAID, PLEASE.

AND THEN THEY SAID YES. SO.

IF YOU SAID PLEASE AGAIN, WOULD THEY EXTENDED A FEW MONTHS? WELL, WE DO LOVE [INAUDIBLE] LIKE WE DO LOVE CARLSBAD AND WE HAVE HALF OF OUR BORDER LIVING IN CARLSBAD, SO PROBABLY.

OKAY. THANK YOU, THANK YOU.

AND AND HANG AROUND FOR COMMENTS BECAUSE I'M GOING TO BE FULL OF COMPLIMENTS FOR WHAT YOU GUYS GET ACCOMPLISHED.

IS IT IT'S BEEN EXPRESSED BY THE COUNCIL THAT THERE'S SOME CONCERN ABOUT HOUSING FIRST FINANCING GOING INTO THE NEW OWNERS.

IS IT REASONABLE TO WRITE THAT INTO THE RFP THAT WE'RE NOT WILLING TO ENTERTAIN HOUSING FIRST, OR IS THAT IS THAT NOT RIGHT TO DO HOUSING FIRST? SORRY ABOUT THAT. HOUSING FIRST REALLY ARE FOR PROGRAMS THAT ARE FOR SPECIAL POPULATIONS, MOSTLY SERVING PEOPLE EXPERIENCING HOMELESSNESS.

AND REALLY, THIS IS A STRAIGHT AFFORDABLE HOUSING COMPLEX WITH EXISTING LOW INCOME TENANTS.

SO WE ARE NOT LOOKING TO CHANGE THE POPULATION.

WE WANT TO SERVE THE PEOPLE WHO ARE CURRENTLY LIVING THERE.

SO THERE WOULD NOT BE A NEED TO SEEK THAT FUNDING.

GOT IT. THANK YOU. DO NOT MEET THE THE NEED FOR THAT OTHER FUNDING OKAY.

ANY OTHER QUESTIONS? COMMENTS? LET'S START WITH YOU, MISS BURKHOLDER.

THANK YOU.

I'VE BEEN KNOWING CHRIS FOR A WHILE NOW.

[01:20:02]

AND JUST, I COULD NOT PHYSICALLY TAKE I PROBABLY MENTALLY AT THIS POINT, ANOTHER WINDSOR POINT.

SO IT MAKES ME FEEL GOOD TO KNOW THAT THIS IS AFFORDABLE.

WE CAN MARKET IT AS AFFORDABLE.

AND IT BREAKS MY HEART THAT THOSE PEOPLE THAT YOU SERVED THAT CAN SERVE OUR COMMUNITY WON'T BE ABLE TO LIVE THERE.

CHRIS, YOU ARE AN AMAZING LEADER.

AND I CAN TELL THIS IS A VERY DIFFICULT DECISION.

I KNOW YOUR BOARD HAS STRUGGLED WITH THIS DECISION AS WELL.

IT'S UNFORTUNATE THE WAY THE STATE HAS LIFTED RESTRICTIONS FOR SOBER LIVING.

AND WE SEE EXACTLY WHAT IT LOOKS LIKE BECAUSE WE HAVE WINDSOR POINT.

SO IF THERE'S A BETTER EXAMPLE THAN A NINE YEAR OLD CHILD TUGGING ON YOUR ARM WITH HER MOTHER ADDICTED TO METH, I DON'T KNOW IT.

I MEAN, I ALMOST STARTED JUST CRYING RIGHT THEN.

JUST INCREDIBLE THINGS THAT YOU'RE DOING FOR THE COMMUNITY.

AND THANK YOU FOR SERVING CARLSBAD RESIDENTS AS WELL.

MANDY, I APPRECIATE I KNOW THIS HAS BEEN KIND OF BACK AND FORTH FOR YOU, TOO, AND I APPRECIATE ALL THE WORK THAT YOU'VE BEEN DOING FOR IT.

I LOVE OUR PARTNERSHIP, AND I HOPE THAT THERE WOULD BE POTENTIAL IN THE FUTURE FOR US TO PARTNER AGAIN POTENTIALLY, AND I THINK THAT'S ABOUT IT.

I'M IN SUPPORT OF MAKING SURE THAT WE CAN HAVE CONTROL OVER WHAT IT LOOKS LIKE IN THE FUTURE.

MY CONCERN NOW IS WHAT IF SOMEONE DEMOLISHES IT AND WANTS TO BUILD LIKE THEY DID WINDSOR POINT AND THEY GO OUT FOR NO PLACE LIKE HOME TO, TO CREATE 80 AFFORDABLE UNITS AT THAT SAME LOCATION? THAT'S CONCERNING TO ME.

SO THIS COUNCIL IS VERY WELL AWARE OF THE PROBLEMS THAT WE'RE HAVING.

SO HOPEFULLY WE'LL GET REASONABLE APPLICANTS FOR THIS PROJECT.

THANK YOU. OTHER COMMENTS.

OKAY, MISS ACOSTA.

THANK YOU.

THANK YOU FOR THE WELL WRITTEN STAFF REPORT, FOR THE GREAT PRESENTATION AND THE CLEAR SLIDES.

THANK YOU TO SOLUTIONS FOR CHANGE FOR YOUR WORK.

I DO WANT TO BE CLEAR THAT I AM ACCEPTING OF VARIOUS MODELS OF HOUSING AND AND SERVING THE HOMELESS.

SO NOT ALL THE COMMENTS THAT ARE MADE BY MY COLLEAGUES ARE ONES I AGREE WITH.

I JUST WANT TO BE CLEAR, LIKE, WE ARE A DIVERSE COUNCIL, AND I SEE ALSO THAT THERE'S ROOM AND PLACE FOR ALL DIFFERENT KINDS OF PROGRAMS TO SERVE POPULATIONS THAT ARE EXPERIENCING HOMELESSNESS AND THAT NEED AFFORDABLE HOUSING OPTIONS.

SO I LOOK FORWARD TO MAKING SURE THAT THIS PROPERTY REMAINS A STRONG ONE THAT HOUSES PEOPLE WHO NEED IT AND THAT IT IS REHABILITATED BECAUSE I UNDERSTAND IT'S IN A STATE OF DISREPAIR AND WANT TO MAKE SURE THAT IT'S GOT AN OWNER OPERATOR THAT IS CARING FOR IT AND FOR ITS RESIDENTS. THANK YOU, MISS BHAT-PATEL.

YES, THANK YOU. AND THANK YOU FOR THE PRESENTATION, MISS MILLS AND MR. MEGGISON FOR BEING HERE.

I KNOW WE'VE HAD THE PLEASURE OF BEING ABLE TO CHAT A FEW TIMES, AND I'VE HAD THE OPPORTUNITY TO SEE THE WORK THAT YOU ALL ARE DOING, AND I BELIEVE THAT THERE IS NO COOKIE CUTTER APPROACH TO ADDRESSING HOMELESSNESS, WHICH I KNOW YOU AND I HAVE TALKED ABOUT.

I THINK THAT WHAT YOU ALL ARE DOING IS VERY VALUABLE, ESPECIALLY FOR THOSE THAT NEED IT.

AND I THINK THERE'S DEFINITELY THE HOUSING FIRST MODEL THAT WORKS FOR SOME.

SO I THINK IT'S A BLEND OF EVERYTHING THAT NEEDS TO OCCUR IN ORDER FOR US TO REALLY PREVENT THIS FROM CONTINUING TO HAPPEN.

AS A PUBLIC HEALTH PERSON, I KNOW THAT IT TAKES A WHOLE THERE'S A WHOLE CONTINUUM OF WHAT NEEDS TO HAPPEN.

AND I'M SORRY TO SEE THAT IT DIDN'T WORK OUT.

BUT I'M LOOKING FORWARD TO SEEING WHAT WE'LL BE ABLE TO DO WITH WITH THIS SPACE.

THANK YOU, MISS LUNA.

ANYTHING? NOW, JUST THAT I'D ENCOURAGE MY COLLEAGUES UP HERE WHEN A CONTRACT DOES COME FORWARD, THAT OUR LAWYER ADVISES US CORRECTLY ON WHAT WE CAN AND CANNOT HAVE IN IT, AND THAT IT WE HAVE A VERY GOOD COLLECTIVE DISCUSSION.

CHRIS, 16 YEARS AGO, I MET YOU AND GOT TO GO SEE YOUR FACILITY IN VISTA, AND I WAS SO IMPRESSED.

COMING OUT OF BEING A POLICE OFFICER FOR SO MANY YEARS AND SEEING HOW HOMELESS PEOPLE ARE CODDLED, EMPOWERED TO STAY HOMELESS. THERE WAS I WATCHED WHAT YOUR IDEA WAS AND WAS SO VERY IMPRESSED.

YOU HAVE FAMILIES WHO YOU HOLD ACCOUNTABLE.

YOU DON'T GIVE THEM ANYTHING.

THEY EARN EVERY BIT OF IT.

AND THEY WANT TO THEY THEY THRIVE ON IT.

[01:25:03]

GOSH, I WATCHED JUST LITTLE ODDS AND ENDS OF YOU TEACHING THEM HOW TO DRESS FOR INTERVIEWS, HOW TO BE RESPONSIBLE AND SHOW UP TO THEIR THEIR JOB ON TIME, TEACHING THEM HOW TO COME BACK INTO SOCIETY.

AND THIS WASN'T A YOU CAN STAY HERE FOR THREE MONTHS AND THEN MOVE ON.

YOU KEPT THEM FOR YEARS TO MAKE SURE THAT THEY GOT BACK ON THEIR FEET.

AND THAT WAS A VERY EXPENSIVE PROPOSITION.

BUT THE PART THAT I LIKED THE MOST IS YOU HELD THEM ACCOUNTABLE.

THEY COULDN'T SHOW UP DRUNK.

THEY COULDN'T COME AND DO DRUGS ON YOUR FACILITY.

AND FOR MANY YEARS, I REMEMBER WE HAD A COUNCIL MEMBER MARK PACKARD USED TO ALWAYS SAY ABOUT HOW THE STATE WAS TRYING TO RUN OUR CITY. AND I USED TO THINK, YEAH, RIGHT.

YOU'RE OVERREACTING.

AND NOW I'M ONE OF THOSE PEOPLE.

THE STATE STARTS TO THINK THAT THEY CAN DO MUCH BETTER THAN WE CAN WITH OUR OWN CITY.

AND SO THEY CAME IN.

AND FOR THE PEOPLE WHO DON'T MAYBE DON'T UNDERSTAND, THE PROBLEM THAT CAME UP IS THE STATE SAID WE'RE GOING TO DISCONTINUE THE FUNDING UNLESS YOU ACCEPT PEOPLE WHO ARE UNDER THE INFLUENCE OF DRUGS AND THINGS LIKE THAT INTO YOUR FACILITY.

AND CHRIS AND SOLUTIONS FOR CHANGE STOOD UP TO IT.

KIND OF WONDER IF IT WAS THE RIGHT THING TO DO, BECAUSE NOW YOU'RE YOU'RE RUNNING INTO FINANCIAL PROBLEMS. BUT I THINK YOU DID THE MORAL, ETHICAL, THE RIGHT THING JUST DIDN'T DO THE FINANCIALLY BEST THING.

BUT I APPLAUD YOU FOR STANDING UP FOR FOR YOUR RESIDENTS AND FOR YOUR YOUR.

I DON'T KNOW WHAT YOU CALL THEM. PATIENTS, RESIDENTS, WHATEVER, AND IT KILLS ME THAT THIS ISN'T WORKING.

I WISH THERE WAS SOMETHING MORE WE CAN DO.

BUT IT DOESN'T LOOK LIKE THERE IS WE'RE GOING TO DO THE BEST WE CAN WITH THAT PROPERTY, AND I HOPE THAT YOU GUYS CAN WORK TOGETHER, SINCE YOU GUYS HAVE HAD IT FOR MANY, MANY YEARS AND YOU UNDERSTAND IT, I'M HOPING MAYBE YOU CAN STEP IN AND HELP US RUN IT.

I'M GOING TO STAY OUT OF THAT. I'M GOING TO LEAVE THAT WITH YOUR.

WITH STAFF, BETWEEN STAFF AND YOU.

BUT FOR WHAT YOU'VE ACCOMPLISHED.

THANK YOU. AND I SHARE IT WITH YOUR IN YOUR FRUSTRATIONS.

AND WITH THAT I THINK WE NEED THREE MOTIONS.

CAN I DO ALL THREE OF THEM AT ONCE? YES. OKAY.

GREAT MOVE.

STAFF RECOMMENDATION TO ADOPT ALL THREE RESOLUTIONS AND AGENDA ITEM SIX.

SECOND. PLEASE VOTE.

THAT PASSES UNANIMOUSLY.

ITEM NUMBER SEVEN.

CITY MANAGER, PLEASE.

OH, BEFORE WE START, WE'RE GOING TO TAKE A TEN MINUTE BREAK.

WE'LL RECONVENE AT 20 MINUTES TO SEVEN.

ORDER. ITEM NUMBER SEVEN, CITY MANAGER.

[7. FISCAL YEAR 2024-25 PRELIMINARY OPERATING BUDGET, STRATEGIC DIGITAL TRANSFORMATION INVESTMENT PROGRAM AND CAPITAL IMPROVEMENT PROGRAM, FISCAL YEAR 2024-25 MASTER FEE SCHEDULE AND UPDATES TO CITY COUNCIL POLICY STATEMENT NO. 95 – COST RECOVERY POLICY FOR FEES AND CHARGES FOR SERVICES]

ITEM NUMBER SEVEN IS OUR FISCAL YEAR 24-25 PRELIMINARY OPERATING BUDGET, STRATEGIC DIGITAL TRANSFORMATION INVESTMENT PROGRAM, AND CAPITAL IMPROVEMENT PROGRAM. THE FISCAL YEAR 24-25 MASTER FEE SCHEDULE AND UPDATES TO CITY COUNCIL POLICY STATEMENT NUMBER 95, WHICH IS OUR COST RECOVERY POLICY FOR FEES AND CHARGES FOR SERVICES.

MAKING OUR PRESENTATION TONIGHT IS OUR ADMINISTRATIVE SERVICES DEPUTY CITY MANAGER LAURA ROCHA, ALONG WITH OUR FINANCE DIRECTOR, ZACK KIRETCH.

TAKE IT AWAY. GREAT. THANK YOU, CITY MANAGER.

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

TONIGHT, FINANCE DIRECTOR ZACH KORACH AND I, LAURA ROCHA, THE DEPUTY CITY MANAGER OF ADMINISTRATIVE SERVICES, WILL BE PRESENTING THE PRELIMINARY BUDGET FOR FISCAL YEAR 2425. TONIGHT'S RECOMMENDED ACTIONS ARE TO ACCEPT THE REPORT AND TO SET THE PUBLIC HEARING.

I WILL KICK THINGS OFF BY TALKING ABOUT OUR OVERALL APPROACH AND PRIORITIES WITH THE PROPOSED BUDGET.

THEN I WILL INVITE MR. KORACH TO WALK YOU THROUGH THE DETAILS, STARTING WITH THE BUDGET FOR EACH OF OUR MAJOR SERVICE AREAS CITYWIDE REVENUES AND EXPENDITURES, INCLUDING A PENSION FUNDING UPDATE AND AN UPDATE ON OUR FINANCIAL FORECAST, PERSONNEL, AN UPDATE ON CITY FEES, AND FINALLY, OUR INVESTMENTS IN DIGITAL AND PHYSICAL INFRASTRUCTURE.

HERE ARE SOME KEY DATES.

TONIGHT IS A CHANCE FOR YOU AND THE PUBLIC TO REVIEW THE PROPOSED BUDGET, ASK QUESTIONS AND PROVIDE FEEDBACK.

LAST YEAR, THE CITY COUNCIL ASKED US TO BRING BACK THE COMMUNITY BUDGET WORKSHOP, WHICH WE HAVE SCHEDULED FOR THIS THURSDAY, MAY 23RD AT THE CITY'S FARADAY CENTER.

THIS WILL BE AN INFORMAL OPPORTUNITY FOR RESIDENTS TO LEARN ABOUT THE BUDGET, ASK QUESTIONS OF STAFF AND PROVIDE INPUT.

WE WILL THEN PROVIDE THAT INPUT TO YOU SO YOU CAN CONSIDER THAT IN YOUR DECISION MAKING.

THE PUBLIC HEARING TO ADOPT THE BUDGET IS SCHEDULED FOR JUNE 18TH, AND ALL OF THIS LEADS UP TO THE BEGINNING OF THE NEW FISCAL YEAR, JULY 1ST.

THIS YEAR'S BUDGET REFLECTS THE CUMULATIVE IMPACTS OF NEW BUDGET POLICIES AND PRACTICES OVER THE PAST FIVE YEARS.

[01:30:07]

FIRST, WE HAVE ELIMINATED THE PROJECTED GENERAL FUND DEFICIT IN OUR FIVE YEAR FORECAST.

WE HAVE ONE OF THE STRONGEST PENSION POSITIONS IN THE REGION.

IN FACT, LOOKING AT THOSE CITIES PARTICIPATING IN THE CALPERS SYSTEM, WE HAVE THE SMALLEST UNFUNDED LIABILITY AMONG CITIES THAT HAVE NOT BORROWED MONEY TO PAY FOR THEIR PENSIONS.

OUR GENERAL FUND RESERVES ARE WELL ABOVE YOUR TARGET OF 40%, AND WE'VE BEEN ABLE TO SET ASIDE MONEY FOR FUTURE NEEDS WE KNOW ARE COMING.

AND MOST IMPORTANTLY, THIS PROPOSED BUDGET MAINTAINS A VERY HIGH LEVEL OF SERVICE FOR OUR COMMUNITY.

THE CITY COUNCIL HAS TAKEN THREE SPECIFIC ACTIONS THAT HAVE CONTRIBUTED TO OUR IMPROVED FINANCIAL POSITION OVER THE PAST SEVERAL YEARS.

YOU HAVE EITHER UPDATED OR CREATED NEW BUDGET POLICIES THAT PROVIDE CLEAR DIRECTION ON BUDGET PRIORITIES AND FINANCIAL STRATEGIES.

YOU HAVE ALSO GIVEN CLEAR DIRECTION TO CITY STAFF TO REDUCE ONGOING EXPENSES TO CLOSE THE STRUCTURAL DEFICIT.

AND FINALLY, YOU HAVE SET OUT A FIVE YEAR VISION IN YOUR STRATEGIC PLAN.

THIS HAS ALLOWED STAFF TO REMAIN FOCUSED ON YOUR MOST IMPORTANT PRIORITIES.

STARTING FIVE YEARS AGO, CITY STAFF ALSO BEGAN TO MAKE CHANGES, INCLUDING NEW BUDGETING BEST PRACTICES.

WE GAVE ALL DEPARTMENTS THE DIRECTION TO HOLD THE LINE ON SPENDING FOR THREE YEARS, FOLLOWED BY REDUCING ONGOING SPENDING FOR THE LAST TWO YEARS. BECAUSE OF THIS GRADUAL APPROACH, WE HAVE BEEN ABLE TO MAINTAIN ACCEPTABLE SERVICE LEVELS AND MINIMIZE THE DISRUPTIONS THAT OFTEN COME WITH BUDGET CUTS. AND SPEAKING OF YOUR STRATEGIC PLAN, WE ARE CONTINUING TO PRIORITIZE SPENDING TO MEET YOUR FIVE MAJOR GOALS.

IT'S HARD TO BELIEVE NOW THAT WE ARE ENTERING THE THIRD YEAR OF IMPLEMENTATION.

BEGINNING IN FISCAL YEAR 2223, THE ANNUAL BUDGET HAS ALSO SERVED AS THE WORK PLAN FOR IMPLEMENTING YOUR STRATEGIC PLAN.

SO WITH THAT BIGGER PICTURE CONTEXT, I'D LIKE NOW TO TURN THE PRESENTATION OVER TO FINANCE DIRECTOR ZACH KORACH TO GO OVER THE PROPOSED BUDGET IN DETAIL.

GREAT. THANK YOU, MISS ROCHA.

SO WE'RE GOING TO BE STARTING THINGS OFF, LOOKING AT AGAIN THE PROPOSED REVENUES AND EXPENDITURES.

BUT START WITH A VIEW BY BRANCH.

WHAT WE'RE LOOKING AT HERE WOULD BE THE UPCOMING PRELIMINARY 2025 PROPOSED BUDGET IN COMPARISON WITH THE ADOPTED 2024 BUDGET.

AND WE ARE LOOKING AT THESE EXPENDITURES IN A FEW DIFFERENT WAYS FIRST, BY CATEGORY, BROKEN DOWN BY PERSONNEL, MAINTENANCE AND OPERATIONS, AS WELL AS INTER-DEPARTMENTAL.

WE'RE ALSO LOOKING AT FULL TIME AND PART TIME PERSONNEL LEVELS FOR EACH BRANCH.

AND THEN FINALLY TOWARDS THE BOTTOM OF THE TABLES.

THE BUDGET'S BROKEN DOWN OR PRESENTED BY FUND TYPE, WHETHER IT BE GENERAL FUND, SPECIAL REVENUE FUND, ENTERPRISE FUND, SO FORTH.

WE'RE GOING TO BE STARTING HERE WITH POLICY AND LEADERSHIP.

WE CAN SEE THAT OVERALL, THE BUDGET IS REMAINING VIRTUALLY UNCHANGED WITH JUST A $1,300 INCREASE YEAR OVER YEAR.

THERE ARE INCREASES TO INTER DEPARTMENTAL CHARGES FOR IT AND WORKERS COMPENSATION CHARGES THAT ARE OFFSET BY REDUCTIONS TO BOTH PERSONNEL AS WELL AS MAINTENANCE AND OPERATIONS. THIS BRANCH IS PROPOSING THE ELIMINATION OF THREE POSITIONS, INCLUDING A DEPUTY CITY CLERK, MANAGEMENT ANALYST, AS WELL AS A SENIOR OFFICE SPECIALIST. NEXT WE'LL BE LOOKING AT THE ADMINISTRATIVE SERVICES BRANCH OVERALL.

THE BRANCH IS INCREASING 5% IN TOTAL, MAINLY DUE TO A $2.2 MILLION INCREASE WITHIN THE MAINTENANCE AND OPERATION LINE ITEM.

THIS INCREASE PERTAINS TO ADDITIONAL LEGAL FEES, WORKERS COMPENSATION CLAIMS, AS WELL AS EXCESS INSURANCE COSTS WITHIN THE CITY'S INTERNAL SERVICE FUNDS.

THE BRANCH IS ALSO PROPOSING THE ELIMINATION OF 3.7 FULL TIME EQUIVALENTS, INCLUDING A SYSTEM SPECIALIST, SENIOR PROGRAM MANAGER FOR D FOR DIVERSITY, EQUITY AND INCLUSION CHIEF INNOVATION OFFICER, AS WELL AS A PART TIME ADMINISTRATIVE ASSISTANT.

THE GENERAL FUND IS DECREASING BY $1.3 MILLION, OR 9%.

THIS IS PARTIALLY DRIVEN BY THE 2.7 POSITION ELIMINATIONS, AS WELL AS THE REORGANIZATION AND TRANSFER OF SIX POSITIONS FROM THE GENERAL FUND TO THE CITY'S INTERNAL SERVICE FUNDS.

THAT IS ALSO DRIVING A SIGNIFICANT PORTION OF THE INCREASE WITHIN THE INTERNAL SERVICE FUNDS.

AS FOR THE CHIEF INNOVATION OFFICER, I WOULD LIKE TO NOTE THAT A PORTION OF THE POSITION IS ALLOCATED TO ECONOMIC DEVELOPMENT.

EACH YEAR, THE ECONOMIC DEVELOPMENT SUBCOMMITTEE MAKES RECOMMENDATIONS TO THE CITY COUNCIL ABOUT THE CITY'S ECONOMIC DEVELOPMENT STRATEGIC PLAN.

THIS YEAR, THE SUBCOMMITTEE DID RECOMMEND TO THE CITY COUNCIL THAT YEAR TWO OF THE ECONOMIC DEVELOPMENT PLAN PROCEED WITH THE EXPECTATION THAT LEVELS OF SERVICE WOULD WOULD

[01:35:07]

NEXT WE'LL BE LOOKING AT THE POLICE DEPARTMENT.

PERSONNEL IS INCREASING 5% DUE TO NEGOTIATED SALARY AND CONTRACTUAL BENEFIT INCREASES.

OVERTIME BUDGET HAS INCREASED TO MORE CLOSELY ALIGN WITH HISTORICAL ACTUALS.

MAINTENANCE AND OPERATION IS INCREASING 22% DUE TO ENHANCED SECURITY MEASURES FOR TGIF CONCERTS AND A ONE TIME PURCHASE OF DEFIBRILLATORS FOR EXISTING, AS WELL AS NEW POLICE VEHICLES.

THERE ARE NO PROPOSED CHANGES TO EITHER FULL TIME OR PART TIME PERSONNEL.

IN LOOKING AT THE FIRE DEPARTMENT.

OVERALL, AN 11% INCREASE.

STARTING WITH PERSONNEL AND MOVING DOWN, IT IS INCREASING VERY SIMILARLY TO WHAT WE SAW IN THE POLICE DEPARTMENT DUE TO NEGOTIATED SALARY AND CONTRACTUAL BENEFIT INCREASES, ALSO DRIVEN BY OVERTIME BUDGET INCREASING TO BETTER ALIGN WITH HISTORICAL ACTUALS, THE MAINTENANCE AND OPERATIONS SIDE IS INCREASING 21% DUE TO FUNDING NEEDED TO CONTINUE PARTICIPATION WITH THE PG, EMT, IGT PROGRAM.

GROUND EMERGENCY MEDICAL TRANSPORT PROGRAM OFFERED BY THE DEPARTMENT OF HEALTH CARE SERVICES.

THERE ARE NO CHANGES IN EITHER FULL TIME OR PART TIME PERSONNEL AND OVERALL, AGAIN, WE ARE SEEING AN 11% INCREASE.

NEXT, LOOKING AT THE PUBLIC WORKS BRANCH, WE CAN SEE A SIGNIFICANT INCREASE 13%.

AND WE WILL CERTAINLY TALK ABOUT WHAT IS DRIVING THIS INCREASE.

FIRST, NOTING THAT THE MAJORITY OF THE INCREASE IS TAKING PLACE WITHIN THE MAINTENANCE AND OPERATIONS CATEGORY.

AND THEN NEAR THE BOTTOM OF THE TABLE, WE CAN SEE THAT THE SIGNIFICANT PORTION OF THAT INCREASE IS DRIVEN WITHIN THE ENTERPRISE AND INTERNAL SERVICE FUNDS.

FIRST, STARTING WITH THE ENTERPRISE FUNDS, ABOUT $3 MILLION OF THE INCREASE IS ATTRIBUTABLE TO SAN DIEGO COUNTY WATER AUTHORITY CHARGES AND THE PORTION OF WATER THAT IS PURCHASED FROM THE AUTHORITY.

$3 MILLION OF THE INCREASE RELATES TO FLEET REPLACEMENT.

THIS INCREASE OVER THE PRIOR YEAR ALSO RESULTS FROM STAFF'S INTENTION TO GET AHEAD OR OUT IN FRONT OF THE EXTENDED LEAD TIMES THAT HAVE BEEN EXPERIENCED IN RECENT YEARS.

WANTING TO ENSURE THAT WHEN VEHICLES BECOME DUE FOR REPLACEMENT IN ONE, 2 OR 3 YEARS DOWN THE ROAD THAT WE ARE ABLE TO TO HAVE THOSE VEHICLES IN POSSESSION IN A TIMELY FASHION.

THE REMAINDER OF THE INCREASE, ABOUT $10 MILLION, IS DUE TO INCREASES IN TRANSFERS FROM ENTERPRISE OPERATING TO ENTERPRISE CAPITAL.

WHEN CAPITAL PROJECT FUNDS REQUIRE ADDITIONAL ADDITIONAL FUNDING TO TO EXPEND ON THE THE THE APPLICABLE CAPITAL PROJECTS.

OFTEN TIMES THE FUNDING WILL COME FROM THE OPERATING FUND WITHIN WHETHER IT'S WATER OR WASTEWATER.

THE BRANCH IS PROPOSING THE ELIMINATION OF ONE VACANT SENIOR ENVIRONMENTAL SPECIALIST POSITION.

NEXT IS COMMUNITY SERVICES.

THE BRANCH IS INCREASING 4% OVER THE PREVIOUS ADOPTED BUDGET.

THE $1.2 MILLION INCREASE WITHIN MAINTENANCE AND OPERATIONS IS PARTLY RELATED TO AN INCREASE WITHIN LIBRARY AND CULTURAL ARTS FOR THE TGIF CONCERTS, BUT ALSO WITHIN THE PARKS AND RECREATION DEPARTMENT FOR CONTRACTUAL CONSUMER PRICE INDEX INCREASES A NUMBER OF EFFORTS RELATED TO DEFERRED MAINTENANCE, AS WELL AS AN INCREASE TO A MASTER SPORTS CONTRACT AND THE PARKS AND RECREATION SHARE OF TGIF FUNDING.

THE BRANCH IS PROPOSING THE ELIMINATION OF FOUR FULL TIME EQUIVALENT POSITIONS A LEAD LIBRARIAN, PRODUCTION TECHNICIAN, PARKS MAINTENANCE WORKER, AS WELL AS AN ASSOCIATE ENGINEER. HERE ARE THE GENERAL FUND INCREASES OR CHANGES BY BRANCH OR FUNCTION.

ABOUT HALF OF THE INCREASE IS DUE TO AN INCREASE IN TRANSFERS TO THE GENERAL CAPITAL CONSTRUCTION FUND, AS WELL AS THE WORKER'S COMPENSATION FUND.

WE'LL BE TALKING ABOUT THESE TRANSFERS IN MORE DETAIL IN JUST A SLIDE, A FEW SLIDES TO COME.

THE REMAINING $10 MILLION OF INCREASE OVER THE PREVIOUS YEAR IS MOSTLY ATTRIBUTABLE TO MANY OF THE REASONS THAT WE'VE TALKED ABOUT PUBLIC SAFETY INCREASES, BOTH FOR SALARY, OVERTIME AND BENEFITS, AS WELL AS THE ADDITIONAL ONE TIME SUPPLEMENTAL REQUESTS.

OVERALL, THE GENERAL FUND IS PROPOSED TO INCREASE $21.5 MILLION, OR JUST UNDER 10%.

SO AT THIS TIME I WOULD LIKE TO TRANSITION AND TALK A BIT ABOUT THE GENERAL FUND RESERVES FOR THE FISCAL YEAR 24-25 BUDGET PROJECTS, THE GENERAL FUND TO END WITH THE GENERAL FUND RESERVE TO END WITH APPROXIMATELY $149 MILLION, WELL ABOVE THE CITY'S 40% POLICY REQUIREMENT, AT A RESERVE RATIO OF 63% OR IN EXCESS OF $54 MILLION.

[01:40:07]

DURING THAT TIME. THE GENERAL FUND HAS ALSO BEEN ABLE TO MAKE SIGNIFICANT ONE TIME INVESTMENTS TO FUND THE CITY'S PENSION CAPITAL PROJECTS, AS WELL AS THE RISK AND WORKERS COMPENSATION PROGRAMS. OVER THE FIVE YEAR PERIOD, THE RESERVE HAS INCREASED APPROXIMATELY 80% FROM $83 MILLION TO $149 MILLION.

NOW, WITH THAT SAID, THE UPCOMING YEAR'S BUDGET DOES INTRODUCE A RECOMMENDATION TO FURTHER THE CITY'S PLANNING AND PREPARATION EFFORTS BY ESTABLISHING AN ASSET REPLACEMENT RESERVE. THE GENERAL FUND IS RESPONSIBLE FOR APPROXIMATELY $60 MILLION OF EQUIPMENT AND MACHINERY INVENTORY, WITH USEFUL LIVES RANGING ANYWHERE BETWEEN 5 AND 20 YEARS.

REPLACING THESE ASSETS CAN REPRESENT A SIGNIFICANT BUDGETARY BURDEN IN ANY GIVEN YEAR.

IN ORDER TO PRIORITIZE AND ENSURE FUNDING IS AVAILABLE IN FUTURE YEARS FOR REPLACEMENTS SUCH AS MEDICAL GURNEYS FOR THE FIRE DEPARTMENT, POLICE RADIOS, AS WELL AS PARK INFRASTRUCTURE AND AMENITIES, STAFF ARE RECOMMENDING $17.5 MILLION BE MOVED FROM THE GENERAL FUND RESERVE TO THIS NEW ASSET REPLACEMENT RESERVE.

SHOULD THE CITY COUNCIL APPROVE THE ESTABLISHMENT OF THIS NEW ASSET REPLACEMENT RESERVE, ALONG WITH THE $17.5 MILLION CONTRIBUTION? THIS IS WHAT THE GENERAL FUND RESERVE WOULD LOOK LIKE.

ALONG WITH THIS, OTHER BALANCES STARTING FROM THE BOTTOM AND BUILDING UP, WE HAVE FIRST THE 40% POLICY REQUIREMENT, TRANSLATING TO $95 MILLION.

THIS IS WHAT THE GENERAL FUND NEEDS TO MAINTAIN AT ANY GIVEN POINT DURING THE FISCAL YEAR.

EVEN FACTORING IN THE ESTABLISHMENT OF THE ASSET REPLACEMENT RESERVE, THERE WOULD STILL BE A $36 MILLION EXCESS BEYOND THAT REQUIREMENT AVAILABLE.

THE GENERAL FUND ALSO HAS $9.6 MILLION SET ASIDE FOR ECONOMIC UNCERTAINTY, $10.7 MILLION SET ASIDE FOR THE RECENTLY ESTABLISHED PENSION TRUST.

AND OF COURSE, THE.

SHOULD THE CITY COUNCIL APPROVE $17.5 MILLION FOR ASSET REPLACEMENT.

I WOULD LIKE TO SWITCH GEARS TO TALK ABOUT PENSION FOR JUST A FEW MOMENTS.

THE CITY PARTICIPATES IN CALPERS.

IT IS A STATE AGENCY THAT PROVIDES PENSION PLAN SERVICES FOR THE MAJORITY OF MUNICIPALITIES THROUGHOUT CALIFORNIA.

THEY ARE RESPONSIBLE FOR OVERSEEING AND MANAGING NEARLY $500 BILLION OF PENSION FUNDS, MAKING THEM ONE OF THE LARGEST PENSION PLANS IN THE COUNTRY ON AN ANNUAL BASIS. CALPERS ESTIMATES THE TOTAL FUTURE LIABILITY FOR THE CITY AND DICTATES HOW MUCH THE CITY IS REQUIRED TO CONTRIBUTE.

UNFORTUNATELY, THERE IS A GREAT DEAL OF VOLATILITY AND UNCERTAINTY WITH THIS MODEL, MAINLY BECAUSE THE CALPERS SYSTEM LARGELY DEPENDS ON THEIR OWN INVESTMENT PERFORMANCE.

WHEN THE CITY MAKES REQUIRED PAYMENTS TO CALPERS, CALPERS TURNS AROUND AND INVESTS THOSE DOLLARS IN HOPES OF ACHIEVING AN ANNUAL RATE OF RETURN OF 6.8%.

WHEN CALPERS PERFORMANCE IS WEAK OR BELOW THEIR 6.8% TARGET, THE CITY'S REQUIRED CONTRIBUTIONS GO UP AND ARE FUNDED.

STATUS GOES DOWN.

WHEN CALPERS PERFORMANCE IS STRONG, THE CITY'S REQUIRED CONTRIBUTIONS GO DOWN AND THE CITY'S FUNDED STATUS GOES UP.

NOW, AS OF JUNE 30TH, 2022, THE MOST RECENT DATA PROVIDED BY CALPERS AND THE CITY HAD A FUNDED STATUS OF 75%, ONE OF THE HIGHEST IN THE COUNTY, WITH THE EXCEPTION OF FOUR CITIES THAT IN RECENT YEARS HAD ISSUED PENSION OBLIGATION BONDS TO PAY DOWN THEIR LIABILITY.

IN OTHER WORDS, THEY ISSUED DEBT TO PAY DOWN EXISTING DEBT.

CITY COUNCIL POLICY NUMBER 86 REQUIRES THE CITY'S FUNDED STATUS TO BE AT A LEVEL OF 80% OR HIGHER, WITH THE CITY'S CURRENT FUNDED STATUS OF 75%.

I WANT TO NOTE THAT IT DID DECREASE FROM 86% IN THE PREVIOUS YEAR, AND WAS LARGELY DRIVEN BY CALPERS INVESTMENT LOSS OF MORE THAN 6% BACK IN FISCAL YEAR 2122. SO WHAT IS THE CITY DOING ABOUT IT? AS AN ALTERNATIVE TO WRITING A SIGNIFICANT ONE TIME CHECK TO CALPERS IN ORDER TO GET BACK TO THE 80% FUNDED STATUS LEVEL IMMEDIATELY.

IN SEPTEMBER OF 2023, THE CITY COUNCIL AUTHORIZED THE ESTABLISHMENT OF A SECTION 115 PENSION TRUST, ALONG WITH AN INITIAL $10 MILLION CONTRIBUTION.

THE CITY COUNCIL ALSO AMENDED POLICY NUMBER 86 TO ALLOW ASSETS IN THIS TRUST TO BE CONSIDERED WHEN CALCULATING AND FACTORING THE CITY'S TOTAL FUNDED STATUS.

NOW, A SECTION 115 TRUST DOES PROVIDE MANY BENEFITS, BUT MOST IMPORTANTLY, IT INCREASES THE LEVEL OF LOCAL CONTROL OVER CITY FUNDS.

AGAIN, RATHER THAN SENDING LARGE SUMS OF MONEY TO CALPERS, WE INSTEAD PUT THE MONEY IN OUR OWN CITY TRUST AND HAVE FULL DISCRETION AS TO HOW THE DOLLARS ARE INVESTED.

FOR EXAMPLE, WE ARE ABLE TO INVEST THOSE DOLLARS MORE CONSERVATIVELY THAN HOW CALPERS DOES.

WE ALSO CONTROL THE TIMING, THE TIMING FOR WHEN THOSE DOLLARS IN THE TRUST CAN BE USED.

ANY TIME THE FUNDED STATUS DROPS BELOW 80% PER COUNCIL POLICY, A PLAN MUST BE PRESENTED TO THE CITY COUNCIL AS TO HOW THE CITY WILL MAINTAIN COMPLIANCE WITHIN

[01:45:08]

GIVEN THE VOLATILITY OF CALPERS INVESTMENT PERFORMANCE, STAFF RECOMMENDED A FIVE YEAR TIME HORIZON IN WHICH ANNUAL CONTRIBUTIONS WOULD BE MADE TO THE TRUST AND THE 80% FUNDED STATUS WOULD BE ACHIEVED AT THE END OF THAT TIME HORIZON.

AS OF MARCH 31ST, 2024, ASSETS IN THE TRUST EQUALED $10.7 MILLION.

ABOUT, WHICH MEANS THAT THE TRUST HAD EARNED ABOUT $700,000 DURING THE FIRST FOUR MONTHS SINCE INCEPTION.

AGAIN, THESE DOLLARS WILL SERVE AS A FUNDING SOURCE DURING PERIODS WHEN THE CITY'S CONTRIBUTION SPIKED SIGNIFICANTLY DUE EITHER TO CALPERS POOR INVESTMENT PERFORMANCE OR CHANGES TO THEIR ASSUMPTIONS.

SO IN SUMMARY, AS OF JUNE 30TH, 2022, THE CITY'S FUNDED STATUS WAS 75% AND BELOW THE 80% POLICY TARGET.

WHEN WE FACTOR IN THE ASSETS THAT HAVE BEEN CONTRIBUTED AND APPRECIATED WITHIN THE TRUST, THE FUNDED STATUS INCREASES TO JUST UNDER 76%.

IN LINE WITH THE FIVE YEAR FUNDING PLAN TO MAINTAIN COMPLIANCE BACK WITH THE 80% POLICY TARGET.

ASSUMING NO CHANGES TO CALPERS ASSUMPTIONS AND ASSUMING THEY EARN THEIR TARGET RATE OF RETURN EVERY YEAR, THE CITY WOULD REACH AN 80% FUNDED STATUS WITHIN THAT FIVE YEAR TIME PERIOD. I DO WANT TO EMPHASIZE, HOWEVER, THAT ASSUMING THAT CALPERS DOES NOT CHANGE THEIR ASSUMPTIONS AND THEY ALSO EARN EXACTLY WHAT THEIR TARGET IS OVER THE NEXT 4 OR 5 YEARS.

IS IS NOT LIKELY.

WITH THIS PLAN IT DOES REQUIRE A BIT OF FLEXIBILITY.

ON AN ANNUAL BASIS, STAFF WILL BE RETURNING TO THE CITY COUNCIL TO REPORT OUT ON THIS PLAN.

FOR EXAMPLE, IF CALPERS WERE TO HAVE A VERY STRONG POSITIVE INVESTMENT PERFORMANCE YEAR, WE MIGHT FIND OURSELVES BEFORE THAT FIVE YEAR PERIOD HAVING ALREADY REACHED AN 80% FUNDED STATUS, AT WHICH POINT THE CITY COUNCIL COULD CONSIDER MAKING RECOMMENDATIONS OR MODIFICATIONS TO THAT PLAN.

SO SWITCHING BACK OVER TO THE CITYWIDE REVENUES 416 MILLION NEARLY IS THE TOTAL AMOUNT OF REVENUE THAT'S ESTIMATED FOR THE UPCOMING FISCAL YEAR.

WE ON THIS SLIDE HAVE PRESENTED THOSE REVENUES DISTRIBUTED BY FUND TYPE AND VERY CONSISTENT WITH PREVIOUS YEARS.

THE GENERAL FUND IS RESPONSIBLE FOR GENERATING NEARLY 60 MILLION, 60% OF THE TOTAL CITYWIDE REVENUES, $239 MILLION.

HERE WE HAVE THAT DATA PRESENTED NUMERICALLY.

I'M GOING TO SKIP OVER FOR RIGHT NOW THE GENERAL FUND.

WE HAVE A FEW DETAILED SLIDES TALKING ABOUT THE THE FLUCTUATIONS WITHIN THAT FUND.

SO LOOKING AT SPECIAL REVENUE FUNDS, THEY ARE PROJECTED TO DECREASE OVER CURRENT YEAR ESTIMATES, MAINLY BECAUSE OF THE NEW FUNDING SOURCE FROM LAST YEAR, THE PERMANENT LOCAL HOUSING ALLOCATION, WHICH ASSISTED WITH THE CITY'S HOUSING EFFORTS.

ENTERPRISE FUNDS ARE INCREASING DUE TO SCHEDULED RATE INCREASES, AS WELL AS AN INCREASE IN TRANSFERS FROM ENTERPRISE OPERATING FUNDS TO ENTERPRISE CAPITAL FUNDS.

INTERNAL SERVICE FUNDS ARE ALSO INCREASING OVER CURRENT YEAR ESTIMATES, DUE TO A ONE TIME TRANSFER FROM THE GENERAL FUND TO THE WORKERS COMPENSATION FUND.

HERE, WE'RE LOOKING AT CITYWIDE EXPENSES $419 MILLION PRESENTED BY FUND TYPE.

AGAIN, VERY CONSISTENT WITH CITYWIDE REVENUES FROM A PERCENTAGE DISTRIBUTION STANDPOINT, WITH THE GENERAL FUND BEING RESPONSIBLE FOR NEARLY 60% OF THE CITY'S TOTAL SPENDING.

SPECIAL REVENUE FUND EXPENDITURES ARE EXPECTED TO INCREASE, PRIMARILY DUE TO AN INCREASE IN RENTAL ASSISTANCE.

RENTAL ASSISTANCE PAYMENTS DUE TO AN INCREASE IN RENTAL COSTS.

ENTERPRISE FUND EXPENDITURES ARE INCREASING DUE TO SAN DIEGO COUNTY WATER AUTHORITY WATER RATE CHARGES AND SEEING A WASTEWATER SERVICES, AS WELL AS TRANSFERS FROM ENTERPRISE OPERATING TO ENTERPRISE CAPITAL FUNDS.

INTERNAL SERVICE FUNDS ARE INCREASING MAINLY DUE TO WORKER'S COMPENSATION AND RISK MANAGEMENT.

THE SUCCESSOR AGENCY, HOUSING TRUST, IS DECREASING ALMOST COMPLETELY AS THE FINAL REPAYMENT HAS BEEN MADE.

THERE ARE ONLY MINOR LEGAL COSTS THAT REMAIN IN THE UPCOMING FISCAL YEAR TO CLOSE OUT THE FUND.

HERE WE ARE LOOKING AT GENERAL FUND REVENUE SOURCES BY VARIOUS CATEGORY, AGAIN, RELATIVELY CONSISTENT WITH PREVIOUS YEARS, WITH PROPERTY TAX BEING THE LARGEST REVENUE GENERATOR WITHIN THE GENERAL FUND, CONSISTENTLY NEXT FOLLOWED BY SALES TAX AND THEN TRANSIENT OCCUPANCY TAX.

SO WITHIN THE GENERAL FUND REVENUES, WE ARE ESTIMATING AN INCREASE OF $4.2 MILLION, OR 1.8%.

STARTING FIRST WITH PROPERTY TAX, IT IS INCREASING MODERATELY BY 3.4%.

[01:50:04]

WHILE THE MEDIAN HOME VALUE HAS NOW INCREASED TO OVER $1.5 MILLION, ANY POTENTIAL ADVERSE IMPACTS THAT MAY BE EXPERIENCED WOULD NOT BE INCLUDED TO THE COUNTY ASSESSOR'S ROLE UNTIL JANUARY 1ST, 2025, WHICH MEANS IT WOULD NOT BE IMPACTING THE CITY'S PROPERTY TAX REVENUES UNTIL FISCAL YEAR 2526.

THERE ARE SOME SOME GREAT BENEFITS WITH PROPERTY TAX REVENUES AS A REVENUE SOURCE.

FIRST, IT BEING VERY STABLE, PARTICULARLY DURING PERIODS OF ECONOMIC UNCERTAINTY, BUT ALSO WITH THE FACT THAT WE ARE AFFORDED ADDITIONAL TIME TO MAKE NECESSARY ADJUSTMENTS.

IF WE BELIEVE THAT THERE ARE INDICATIONS OF OF A SLOWDOWN OR A DECREASE WITHIN THAT REVENUE SOURCE, SALES TAX REVENUES ARE CONSERVATIVELY ESTIMATED TO INCREASE BY ABOUT A HALF $1 MILLION, OR JUST UNDER 1% COMPARED TO CURRENT YEAR ESTIMATES.

WHAT WE ARE NOT SHOWING ON THIS CHART IS WHERE SALES TAX REVENUES WERE ESTIMATED WHEN THE FISCAL YEAR 2324 BUDGET WAS ADOPTED, WHICH WAS AROUND $52 MILLION.

THIS IS A NOTABLE INCREASE THAT WE'VE SEEN THROUGHOUT THE COURSE OF FISCAL YEAR 2324.

IT WAS PARTIALLY DRIVEN BY INFLATION AND SUSTAINED BY CONSUMER DEMAND, BUT MOST SIGNIFICANTLY, DUE TO THE CORRECTION OF AN ERROR AS TO HOW ONE PARTICULAR AUTO DEALER WAS ASSIGNING THEIR SALES TAX RECEIPTS THAT HAS SINCE BEEN IDENTIFIED AND CORRECTED.

THE CITY IS RECEIVING ALL OF THE SALES TAX RECEIPTS IT IS ENTITLED TO, AND WILL CONTINUE TO DO SO ON AN ONGOING BASIS.

WITH THAT SAID, THERE ARE CERTAIN COMPONENTS WITHIN OUR SALES TAX BASE WHERE WE ARE BEGINNING TO SEE OVER THE LAST SIX MONTHS OR SO INDICATIONS OF A SLOWDOWN PRIMARILY WITHIN GENERAL RETAIL, BUSINESS TO BUSINESS CONSTRUCTION AS WELL AS FOOD PRODUCTS AND RESTAURANTS.

AND WE BELIEVE THAT THAT IS AN INDICATION THAT WITH THE HIGH LEVELS OF INFLATION THAT HAVE BEEN SUSTAINED BY CONSUMER DEMAND, THAT MAY BE DIMINISHING. AND THAT IS ONE PARTICULAR REVENUE SOURCE THAT WE'RE GOING TO CONTINUE TO PAY CLOSE ATTENTION TO MOVING FORWARD.

TRANSIENT OCCUPANCY TAX IS EXPECTED TO REMAIN RELATIVELY FLAT FOR THE UPCOMING YEAR, AS STAFF REPORTED DURING OUR QUARTERLY UPDATES, VOLATILITY WAS NOTED IN OUR HOTELIERS AVERAGE DAILY ROOM RATES, WHICH RESULTED IN A MODERATE DROP IN TOT REVENUES FOR THE FIRST HALF OF FISCAL YEAR 2324.

HOWEVER, THE SECOND HALF OF THE YEAR IS PERFORMING WELL.

WE BELIEVE 2024 IS THE MARK OF A NEW NORMAL IN A POST PANDEMIC OR REVENGE TRAVEL ENVIRONMENT.

AND GIVEN THE LINGERING INFLATION, WE ARE CONTINUING TO TAKE A CAUTIOUS APPROACH WITH THE FOR THE UPCOMING YEAR, FRANCHISE TAXES AND BUSINESS LICENSE TAXES ARE EXPECTED TO INCREASE MODERATELY AND DEVELOPMENT REVENUES ARE INCREASING, PERHAPS MOST SIGNIFICANTLY FROM A PERCENTAGE STANDPOINT $800,000 OVER CURRENT YEAR ESTIMATES.

ABOUT $600,000 OF THIS INCREASE IS ATTRIBUTABLE TO THE CITY'S RECENTLY APPROVED HOUSING ELEMENT WITH THE ANTICIPATION OF AN INCREASED VOLUME IN PLANNING AND BUILDING PERMITS APPLICATIONS TO BE SUBMITTED, ALL OTHER REVENUE CATEGORY IS EXPECTED TO DECLINE SLIGHTLY.

WHEN WE REFER TO ALL OTHER REVENUES.

THIS INCLUDES INTER DEPARTMENTAL CHARGES, INCOME FROM INVESTMENTS AND PROPERTY, AMBULANCE FEES, TRANSFER TAXES, OTHER INTERGOVERNMENTAL REVENUES, AS WELL AS FINES AND FORFEITURES.

IN LOOKING AT GENERAL FUND EXPENDITURES BY TYPE, AGAIN, VERY CONSISTENT COMPARED TO PREVIOUS FISCAL YEARS, THE TOTAL GENERAL FUND BUDGET IS PROPOSED AT $238.5 MILLION, WITH NEARLY 60% COMPRISED OF PERSONNEL.

ABOUT 30% MAINTENANCE AND OPERATIONS, AND 16% TRANSFERS.

HERE, WE'RE LOOKING AT GENERAL FUND EXPENDITURES BY AREA OR BY BRANCH.

ALSO CONSISTENT YEAR OVER YEAR PUBLIC SAFETY MAKING UP 43% OF THE GENERAL FUND BUDGET.

NEXT FOLLOWED BY COMMUNITY SERVICES AT 22% AND NON-DEPARTMENTAL AT 17%.

WE ARE OFTEN ASKED WHAT IS NON-DEPARTMENTAL AND WHAT TYPES OF ACTIVITIES ARE WITHIN THAT LINE ITEM.

THAT COMPRISES 99% OF THE INNER FUND TRANSFERS AND MOVEMENT OF CASH FROM THE GENERAL FUND TO OTHER FUNDS WITHIN THE CITY.

SO HERE WE CAN SEE THAT THE THE PRELIMINARY BUDGET IS PROPOSED TO INCREASE $21.5 MILLION OVER LAST YEAR'S ADOPTED BUDGET, OR JUST UNDER 10%. STARTING FROM THE TOP AND MOVING DOWN, I'LL START WITH PERSONNEL.

IT IS INCREASING BY $4.6 MILLION OR 3.6%.

THIS IS MAINLY DRIVEN BY CALPERS AND THE INCREASE IN OUR UNFUNDED ACTUARIAL LIABILITY PAYMENT THAT IS REQUIRED IS ALSO VERY MUCH SO DRIVEN BY THE CALPERS INVESTMENT PERFORMANCE, OR LACK THEREOF, FROM FISCAL YEAR 22.

[01:55:04]

MAINTENANCE AND OPERATION COSTS ARE INCREASING BY 1.3% OVER THE PREVIOUS YEAR, ATTRIBUTABLE TO MANY OF THE ONE TIME SUPPLEMENTAL REQUESTS THAT WE DISCUSSED DURING THE BRANCH SUMMARIES.

CAPITAL OUTLAY INCREASING BY $400,000.

THIS IS SPECIFICALLY THE DEFIBRILLATORS REQUEST SUBMITTED BY THE POLICE DEPARTMENT FOR THEIR EXISTING AND NEW VEHICLES.

IN TRANSFERS, I DO WANT TO TALK JUST BRIEFLY ABOUT THIS PARTICULAR ITEM AS IT IS DRIVING THE MAJORITY OF THE COST INCREASE.

SO DIVING INTO WHAT IS MAKING UP THE $37.5 MILLION COUNCIL POLICY NUMBER 91 DIRECTS STAFF TO BRING FORWARD RECOMMENDATIONS TO TRANSFER ON AN ANNUAL BASIS, 6% OF THE ESTIMATED REVENUES TO THREE DIFFERENT CAPITAL PROJECT FUNDS THE GENERAL CAPITAL CONSTRUCTION FUND, INFRASTRUCTURE REPLACEMENT FUND, AS WELL AS THE TECHNOLOGY INVESTMENT FUND.

THAT 6% OF ESTIMATED REVENUES, ABOUT $14.5 MILLION, IS INCLUDED IN THIS LINE ITEM.

HOWEVER, WHEN THE BUDGET WAS BEING DEVELOPED, WE IDENTIFIED A PRELIMINARY OPERATING SURPLUS AND AS SUCH ARE RECOMMENDING TWO ONE TIME USES OF THAT SURPLUS, THE FIRST BEING AN ADDITIONAL TRANSFER OF $14 MILLION TO THE GENERAL CAPITAL CONSTRUCTION FUND, AND SECONDLY, A $7 MILLION TRANSFER TO THE WORKERS COMPENSATION FUND.

FOR THE $7 MILLION TRANSFER.

YOU MAY RECALL, AS PART OF THE CARRY FORWARD ITEM THAT WAS BROUGHT TO CITY COUNCIL IN SEPTEMBER OF 2023, STAFF HAD RECOMMENDED IN THE CITY COUNCIL HAD AUTHORIZED A TRANSFER FROM THE GENERAL FUND IN THE AMOUNT OF $8.2 MILLION.

THE PURPOSE OF THIS TRANSFER WAS TO IMPROVE THE WORKERS COMPENSATION RESERVE AND ITS FISCAL CONDITION.

FISCAL CONDITION IN ACCORDANCE WITH ACTUARIAL BEST PRACTICES, AS WELL AS RECOMMENDATIONS PROVIDED BY OUR EXTERNAL AUDITORS.

THAT DID GET US TO A 50% CONFIDENCE LEVEL.

BEST PRACTICES IN ACTUARIAL STANDARDS DO RECOMMEND AN 85% CONFIDENCE LEVEL WITH THE AUTHORIZATION OF THIS ADDITIONAL $7 MILLION TRANSFER.

THE WORKERS COMPENSATION FUND WOULD BE FUNDED AT THAT 85% LEVEL.

AND IT WOULD ALSO CERTAINLY GO A LONG WAYS TOWARDS ENSURING THAT THE WORKERS COMPENSATION FUND CAN REMAIN SOLVENT AND BE ABLE TO ABSORB THE SIGNIFICANT INCREASE THAT HAS BEEN EXPERIENCED IN ITS ACTIVITIES IN RECENT YEARS.

OH. EXCUSE ME.

BUT WE DID WANT TO DRILL INTO THE PERSONNEL LINE ITEM JUST BRIEFLY TO SHOW OF THE THREE OF THE $4.6 MILLION INCREASE, WHAT ARE THE PRIMARY DRIVERS OF THAT? SALARIES AND WAGES IS INCREASING $1.3 MILLION OVER THE PREVIOUS YEAR, OR 1.4% IN ANY GIVEN YEAR DUE TO NEGOTIATED SALARY INCREASES. WE CAN SEE SALARIES INCREASE ANYWHERE BETWEEN 3 AND 4% ON AVERAGE.

HOWEVER, DUE TO THE RECOMMENDATION TO ELIMINATE 9.7 FULL TIME EQUIVALENTS WITHIN THE GENERAL FUND, THAT IS REDUCING THE YEAR OVER YEAR INCREASE RETIREMENT BENEFITS.

THIS IS CALPERS.

AND AS I MENTIONED, THE INCREASE IN OUR UNFUNDED LIABILITY THAT IS REQUIRED TO BE MADE TO CALPERS WHEN IN FISCAL YEAR 22, THEY EARNED A 6% LOSS ON THEIR INVESTMENTS.

THAT RESULTED IN A 26% INCREASE IN CITYWIDE UAL OR UNFUNDED ACTUARIAL LIABILITY PAYMENT THAT THE CITY IS REQUIRED TO BE MADE.

HEALTH INSURANCE IS REMAINING RELATIVELY FLAT, WHICH IS A GOOD SIGN.

WHEN WE LOOK AT OTHER PERSONNEL, WE ARE REFERRING TO MEDICARE, UNEMPLOYMENT, DISABILITY.

BUT IN TERMS OF THE APPROXIMATELY $1 MILLION INCREASE THAT IS PRIMARILY DRIVEN BY INCREASES IN WORKERS COMPENSATION.

A BRIEF DISCUSSION ON FULL TIME EQUIVALENT AND ITS DECREASES BETWEEN FISCAL YEAR 23 AND FISCAL YEAR 25.

THE CITY MANAGER HAD DIRECTED DEPARTMENTS TO IDENTIFY BUDGET REDUCTIONS IN AN EFFORT TO MITIGATE ECONOMIC UNCERTAINTY, AS WELL AS TO BETTER POSITION THE CITY FOR THE FUTURE.

IN FISCAL YEAR 24, THE CITY REDUCED 12 FULL TIME EQUIVALENT POSITIONS, THE MAJORITY OF WHICH WERE PART TIME POSITIONS.

IN FISCAL YEAR 25.

STAFF ARE NOW PROPOSING THE REDUCTION OF 12 ADDITIONAL FULL TIME EQUIVALENT POSITIONS, HOWEVER, THE MAJORITY OF WHICH ARE FULL TIME POSITIONS.

IF APPROVED OVER THIS TIME PERIOD, STAFFING LEVELS WILL HAVE DECREASED BY JUST OVER 24 FULL TIME EQUIVALENT POSITIONS.

YOU'LL RECALL A MEMORANDUM THAT WAS ISSUED TO THE CITY COUNCIL IN JANUARY OF 2024, NOTING THESE EFFORTS TO FURTHER REDUCE STAFFING

[02:00:04]

NEXT TRANSITIONING INTO ENCLOSING ON THE OPERATING SIDE, THE GENERAL FUND FORECAST.

WHAT WE'RE LOOKING AT HERE IS A GENERAL FUND FORECAST THAT WAS PRESENTED AT THIS TIME LAST YEAR FOR FISCAL YEAR 23-24.

THE OUTLOOK WAS RELATIVELY BLEAK IN THAT THE CITY WAS PROJECTING A FUTURE DEFICIT TO OCCUR IN FISCAL YEAR 25-26.

THIS WAS DRIVEN BY A NUMBER OF FACTORS, BUT PREDOMINANTLY ECONOMIC UNCERTAINTY WAS HEIGHTENED AS INFLATION WAS STILL AT HISTORICALLY HIGH LEVELS IN EXCESS OF 8%.

WE HAD YET TO FINISH FISCAL YEAR 22-23, WHICH ULTIMATELY INDICATED THAT GENERAL FUND REVENUES CONTINUED TO REACH HISTORIC HIGHS BEYOND ORIGINAL CONSERVATIVE ESTIMATES, MUCH OF WHICH WAS DRIVEN BY BY SUSTAINED CONSUMER DEMAND THROUGHOUT THAT INFLATIONARY PERIOD.

LATER IN THAT CALENDAR YEAR, IN OCTOBER OF 2023, AFTER THE BUDGET WAS ADOPTED IN FISCAL YEAR 23 WAS CLOSED, STAFF REPORTED OUT TO THE CITY COUNCIL THAT THE OUTLOOK WAS APPEARING MORE POSITIVE, AND WE WERE THEN AT THAT POINT PROJECTING THE FUTURE DEFICIT TO OCCUR IN YEAR FIVE.

FAST FORWARD TO TODAY AND OUR OUTLOOK IS INCREASINGLY MORE POSITIVE.

AGAIN, THIS HAS BEEN DRIVEN BY POSITIVE REVENUE PERFORMANCE IN FISCAL YEAR 23 AND THROUGH THE FIRST TEN MONTHS OF THE CURRENT FISCAL YEAR.

BUT A LARGE PART OF THIS SHIFT IS ALSO ATTRIBUTABLE TO THE EFFORTS PUT FORTH OVER THE LAST THREE BUDGETS, WHEREBY THE GENERAL FUND WAS ABLE TO REDUCE ONGOING COSTS OF OVER $5 MILLION. IN LOOKING AT THE FIRST YEAR HERE, THE REASON FOR THE SMALL SURPLUS IS BECAUSE WE PROGRAMED AND ARE RECOMMENDING ONE TIME USES TO TRANSFER THE EXCESS FUNDS TO THE GENERAL CAPITAL CONSTRUCTION FUND AND WORKER'S COMPENSATION FUND, SINCE THEY ARE NOT ONGOING AND ONLY ONE TIME YEAR TWO PROJECTED SURPLUS INCREASES SIGNIFICANTLY AND THEN BEGINS TO DIMINISH THEREAFTER.

THIS CONTINUES TO BE INCREDIBLY IMPORTANT BECAUSE FOR THE FIRST TIME IN RECENT YEARS, WE ARE BEGINNING TO SEE SOME SERIOUS SLOWDOWN AND EVEN DECLINE IN REVENUE SOURCES AND COMPONENTS THEREOF.

SALES TAX AND TRANSIENT OCCUPANCY TAX IN PARTICULAR.

WE ARE STILL APPLYING CONSERVATIVE REVENUE ESTIMATES INTO THE FUTURE.

BUT THE GOOD NEWS IS, BECAUSE OF THE PROACTIVENESS OF THE CITY COUNCIL, WE ARE AFFORDED ADDITIONAL TIME BEFORE NEEDING TO TAKE FURTHER ACTIONS.

HERE, WE'RE LOOKING AT SOME OF THE PRIMARY CONTRIBUTING FACTORS FOR THE POSITIVE SHIFT IN THE FORECAST COMPARED TO WHAT WE WERE LOOKING AT A YEAR AGO.

AGAIN, AT THIS TIME, WE WERE APPLYING CONSERVATIVE ESTIMATES TO ACCOUNT FOR THE HIGH INFLATION AND ITS POTENTIAL IMPACT ON CONSUMER DEMAND.

BASED ON CURRENT ESTIMATES, WE'RE PROJECTING THESE REVENUE SOURCES TO COME IN ABOUT $17 MILLION HIGHER THAN PREVIOUSLY AND ORIGINALLY ESTIMATED.

WHILE THIS IS A SIGNIFICANT AMOUNT, WHEN WE LOOK AT THE TOTAL REVENUES WITHIN THE GENERAL FUND OF $241 MILLION, THIS REPRESENTS A 7% INCREASE OVER ORIGINAL ESTIMATES. I ALSO WANT TO NOTE, WHEN WE'RE LOOKING AT PROPERTY TAX INCLUDED IN THE $7.6 MILLION INCREASE INCLUDES A NEARLY $3 MILLION INCREASE FOR AIRCRAFT TAXES.

THAT WAS AN INCREASE THAT WAS CERTAINLY NOT ANTICIPATED WITHIN THE FISCAL YEAR.

FURTHERMORE, WHEN WE LOOK AT SALES TAX, A SIGNIFICANT PORTION, APPROXIMATELY 50% OF THE $7.8 MILLION INCREASE WAS ATTRIBUTABLE TO THE CORRECTION OF AN ERROR.

WHEN WE LOOK AT THE OTHER SIDE OF THE LEDGER AND ALSO A SIGNIFICANT CONTRIBUTING FACTOR, THE $5 MILLION THAT HAS BEEN IDENTIFIED AND RECOMMENDED AND PARTIALLY AUTHORIZED TO THIS POINT OVER THE LAST THREE YEARS, AMOUNTING TO $5 MILLION.

WHEN WE LOOK AT THAT THREE YEAR PERIOD, THE IMPACT HAS BEEN POSITIVELY IMPACTED BY ABOUT $22.3 MILLION.

QUICK DISCUSSION ON SOME OF THE CITY'S ENTERPRISE FUNDS.

THIS INCLUDES WATER, SEWER, SOLID WASTE, THE GOLF COURSE.

THESE, OF COURSE, ARE DIFFERENT REVENUE SOURCES.

THEY ARE PRIMARILY FEE BASED AS AS OPPOSED TO THE GENERAL FUND OR SOME OF OUR SPECIAL REVENUE FUNDS.

THERE IS INHERENTLY LESS VOLATILITY WITHIN OUR ENTERPRISE FUNDS, AND WE DO HAVE THE ABILITY TO USE FUND BALANCES OR EXISTING RESERVES IN ORDER TO BALANCE THE BUDGET AND PLAN FOR THE FUTURE BEING ABLE TO RELY ON THOSE BALANCES. SO WITH THAT UNDERSTANDING, CURRENTLY ACROSS ALL THE CITY'S ENTERPRISE FUNDS, THERE'S $52 MILLION IN AVAILABLE FUND BALANCE WITH ESTIMATED REVENUES OF JUST UNDER $102 MILLION, WITH A PRELIMINARY TOTAL BUDGET OF $118.5 MILLION.

AVAILABLE RESOURCES.

WELL ABOVE THE PLANNED USE.

AS IT RELATES TO THE MASTER FEE SCHEDULE.

[02:05:03]

STAFF CONDUCT AN ANNUAL REVIEW TO ENSURE THAT THE FEES BEING CHARGED DO NOT EXCEED DIRECT, AS WELL AS INDIRECT COSTS FOR PROVIDING THE SERVICE.

A COMPREHENSIVE COST OF SERVICE STUDY IS PREPARED EVERY 5 TO 7 YEARS TO UPDATE THE CALCULATION OF THE COST, AND CONFIRM THAT THE FEES AND CHARGES FOR SERVICES DO NOT EXCEED THOSE UPDATED COSTS.

THE LAST COMPREHENSIVE STUDY WAS CONDUCTED IN 2019 AND APPROVED BY THE CITY COUNCIL IN 2021.

GIVEN THE CITY'S RECENTLY ADOPTED COST RECOVERY POLICY, WHICH STRIVES TO ALIGN FEE CHARGES WITH THE COST ASSOCIATED WITH PROVIDING THOSE SERVICES.

STAFF ARE PLANNING TO CONDUCT ANOTHER COMPREHENSIVE FEE STUDY DURING FISCAL YEAR 2425, BEFORE APPLYING ANY FURTHER COST RECOVERY INCREASES.

THIS WILL ALLOW THE OPPORTUNITY TO CAPTURE ANY POTENTIAL BUSINESS PROCESS CHANGES THAT MAY HAVE BEEN IMPLEMENTED, AS WELL AS ANY AREAS WHERE TECHNOLOGY MAY HAVE BEEN LEVERAGED TO INCREASE EFFICIENCIES OVER THE LAST FIVE YEARS.

FISCAL YEAR 2425, IN LARGE PART, WILL ONLY APPLY THE APPLICABLE INDEX AS AN INCREASE TO THE EXISTING SCHEDULE.

AS DISCUSSED IN THE STAFF REPORT, THE FINAL ADOPTED BUDGET WILL ALSO RECOMMEND AMENDMENTS TO COUNCIL POLICY 95, ALIGNING CERTAIN UTILITY FEES IN ACCORDANCE WITH POLICY.

AND FOR REFERENCE AS IT RELATES TO THE VARIOUS FEE CATEGORIES WITHIN THE CITY'S MASTER FEE SCHEDULE, THESE ARE THE VARIOUS INDICES THAT ARE USED, AS WELL AS THE FISCAL YEAR 2425 INCREASE FACTOR.

WE CAN SEE NEARLY ACROSS THE BOARD A SIGNIFICANT DECREASE COMPARED TO THE PREVIOUS FISCAL YEAR, WITH THE EXCEPTION OF DEVELOPMENT IMPACT FEES STILL AT A SIGNIFICANTLY HIGH LEVEL. THERE ARE SEVEN NEW FEES THAT ARE PROPOSED FOR CITY COUNCIL CONSIDERATION TO BE ADDED TO THE MASTER FEE SCHEDULE, THE MAJORITY OF WHICH ARE FOR EXISTING SERVICES THAT ARE PROVIDED BY STAFF, TO RESIDENTS, TO CUSTOMERS.

WHERE A FEE IS CURRENTLY DOES NOT EXIST.

THIS IS AN EFFORT TO ENSURE THAT THAT CITY SERVICES ARE BEING COST RECOVERED.

AND WE'RE ABLE TO CONTINUE THOSE SERVICES INTO THE FUTURE.

AND WITH THAT I WILL.

I WILL CARRY ON THE PRESENTATION RIGHT INTO THE SECOND PORTION, THE STRATEGIC DIGITAL TRANSFORMATION INVESTMENT PROGRAM.

NOW THIS IS A FIVE YEAR PLAN WITH 41 PROJECTS TOTALING JUST UNDER $37 MILLION.

IN THE UPCOMING FISCAL YEAR.

$5 MILLION IS BEING REQUESTED FOR EIGHT ONGOING PROJECTS IN.

ABOUT $1.3 MILLION IS BEING REQUESTED FOR EIGHT NEW PROJECTS.

DURING FISCAL YEAR 2324, THERE WERE A NUMBER OF PROJECTS THAT WERE COMPLETED WITH A TOTAL COST OF $1.1 MILLION.

I WOULD LIKE TO NOTE A NUMBER OF THESE PROJECTS DID COME IN, COME IN UNDER BUDGET.

SINCE THE FIRST TIP WAS ESTABLISHED A FEW YEARS BACK, THERE'S BEEN OVER $1.6 MILLION IN TOTAL COST SAVINGS.

AND THESE PROJECTS ALSO CONTRIBUTED TO THAT TOTAL.

THE UPCOMING YEARS.

ST TIP DOES RECOMMEND A FEW PROJECTS HERE TO BE REMOVED DUE TO NO LONGER HAVING A NECESSITY, WHICH WOULD SAVE APPROXIMATELY $1.1 MILLION IN TOTAL PROJECT COSTS.

HERE WE HAVE A LOOK AT THE LIST OF CONTINUING PROJECTS.

ABOUT $5 MILLION OF APPROPRIATIONS THAT ARE BEING REQUESTED.

I WOULD LIKE TO CALL OUT THE FOURTH PROJECT, THE CONSOLIDATION AND REPLACEMENT OF CORE SYSTEMS. THE CITY CURRENTLY HAS ABOUT 2020 SYSTEMS THAT OPERATE ALL IN CONCERT WITH EACH OTHER.

AND THE CITY HAS FOR A FEW YEARS NOW BEEN UNDERWAY IN TRYING TO REPLACE AND OR CONSOLIDATE A NUMBER OF THOSE SYSTEMS TO INCREASE EFFICIENCIES AS WELL AS ACCURACY AND LEVEL OF SERVICE.

THIS WILL NOT ONLY BE A TREMENDOUS EFFORT FOR THE ADMINISTRATIVE SERVICES DEPARTMENT OR BRANCH, BUT ALSO FOR THE CITY AS A WHOLE.

HERE WE HAVE A LIST OF CONTINUING PROJECTS THAT ARE NOT REQUESTING ADDITIONAL APPROPRIATIONS BUT ARE PROGRESSING WITH EXISTING.

AND THEN FINALLY A LIST OF NEW PROJECTS, MOST NOTABLY THE RFID RADIO FREQUENCY ID OR IDENTIFICATION REPLACEMENT.

THIS IS THE LIBRARY CHECKING SYSTEM HAS REACHED THE END OF ITS USEFUL LIFE AND REQUIRES REPLACEMENT.

ALSO A NOTABLE PROJECT, THE STATION ALERTING EQUIPMENT REPLACEMENT AT A NUMBER OF THE CITY'S FIRE STATIONS.

SO IN CLOSING, JUST A HIGH LEVEL LOOK AT THE FIVE YEAR ST TIP PLAN.

[02:10:02]

IN MOVING NEXT INTO THE CAPITAL IMPROVEMENT PROGRAM.

SO IN FISCAL YEAR 25, THE TOTAL BUDGET REQUEST IS $15.6 MILLION.

THIS SLIDE IS A GOOD DEPICTION OF HOW THE PROPOSED CHANGE IN APPROACH FOR THE CIP IS TAKING SHAPE, IN WHICH CONSTRUCTION BUDGET IS NO LONGER REQUESTED UP FRONT OR AS PART OF THE ADOPTED CIP, BUT ONLY WHEN THE PROJECT REACHES THE APPROPRIATE PHASE.

IN OTHER WORDS, WHEN FINAL DESIGN IS PRESENTED TO THE CITY COUNCIL AND APPROVED, THE FISCAL YEAR 25 REQUEST OF $15.6 MILLION IS NOTABLY LOWER THAN WHERE WE WOULD HAVE PROJECTED THE REQUEST TO BE UNDER THE OLD METHODOLOGY, WHEN INCLUDING THE CONSTRUCTION COSTS, WE WOULD HAVE OTHERWISE BEEN LOOKING AT AN APPROPRIATIONS REQUEST OF $84.8 MILLION.

LOOKING AT THE APPROPRIATIONS IN THE UPCOMING FISCAL YEAR BY PROJECT CLASSIFICATION, AND AS THE CITY CONTINUES ITS TRANSITION TO ONE FOCUS, MORE SO ON MAINTENANCE, WE CONTINUE TO SEE ABOUT 60% OF THE NEW PROJECTS OR NEW APPROPRIATIONS RELATED TO MAINTENANCE, WITH 36% RELATED TO CAPITAL PROJECTS OR BUILDING SOMETHING NEW. NOW, AS YOU SCAN THROUGH THE FIVE YEAR CAPITAL IMPROVEMENT PROGRAM WITHIN EXHIBIT SIX, YOU'LL NOTE A NUMBER OF NEW APPROPRIATION REQUESTS IN FISCAL YEAR 2425, BUT YOU'LL ALSO NOTE A NUMBER OF REDUCTIONS.

THESE REDUCTIONS ARE PRIMARILY THE REMOVAL OF ANY EXISTING CONSTRUCTION BUDGET THAT HAD BEEN PREVIOUSLY AUTHORIZED BY THE CITY COUNCIL.

THESE, EXCUSE ME THESE ARE BEING REMOVED AGAIN IN LINE WITH THE NEW CIP APPROACH, WHEREBY CONSTRUCTION BUDGET WILL ONLY BE REQUESTED ONCE FINAL DESIGN HAS BEEN APPROVED BY THE CITY COUNCIL.

SO WHILE THE FISCAL YEAR 24-25 CIP BUDGET IS REQUESTING A NET TOTAL OF ABOUT $15.6 MILLION IN NEW APPROPRIATIONS, GROSS NEW APPROPRIATIONS EQUAL $50.8 MILLION AND $35.2 MILLION ARE BEING REMOVED.

THIS SLIDE DEPICTS THE GROSS CHANGES ACROSS PROJECT TYPES.

THE LARGE DECREASE WITHIN FACILITIES IS DRIVEN BY THE $26 MILLION REMOVAL OF CONSTRUCTION BUDGET RELATED TO THE ORION CENTER.

HERE ARE THE APPROPRIATION CHANGES BY CATEGORY.

AND WE'RE SEEING A SIMILAR EFFECT WITHIN THE STRATEGIC PLAN PROJECTS WITH A REDUCTION OF THE CONSTRUCTION BUDGET FOR THE ORION CENTER.

THERE ARE TWO NEW PROJECTS PARTIALLY FUNDED THROUGH GRANTS.

PASEO DEL NORTE BIKE AND PET IMPROVEMENTS, AS WELL AS SCHOOLS TRAFFIC SAFETY PROGRAM.

WE HAVE A NUMBER OF NEW MAINTENANCE PROJECTS.

LISTED OUT HERE, PRESENTED WITH THE FISCAL YEAR 25 APPROPRIATION AMOUNT, AS WELL AS THE DISTRICT THAT THE PROJECT WILL TAKE PLACE.

NOW IN CIRCLING BACK TO THE CITY'S FIVE YEAR STRATEGIC PLAN.

THE PLAN HAD ORIGINALLY REFERENCED 52 PROJECTS, BUT DUE TO THE COMBINING AND OR REMOVAL OF PROJECTS, THERE ARE NOW 47 PRIORITY PROJECTS, 35 OF WHICH ARE ON TRACK FOR STRATEGIC PLAN DEADLINES, WHILE 12 HAVE A RECOMMENDED CHANGE WHETHER BEING DUE TO CHANGE IN PRIORITY NEEDING FURTHER EITHER INFORMATION OR SCOPING OR INSUFFICIENCY OF FUNDING.

NOW, SINCE THE FIVE YEAR STRATEGIC PLAN WAS APPROVED BY THE CITY COUNCIL, AND IN RECENT YEARS, THE CITY HAS BEEN INCREDIBLY BUSY WITH VARIOUS EMERGENCY EFFORTS.

FIRST WITH GREEN PAINT, BIKE LANES, TRAFFIC SIGNAL UPGRADES, AS WELL AS RESURFACING AND RESTRIPING AT A NUMBER OF LOCATIONS THROUGHOUT THE CITY.

ARTERIAL CORRIDOR RECONFIGURATIONS.

AS WELL AS EXPANDED STREET RESURFACING AND RESTRIPING AND OF COURSE, THE BUENA VISTA CHANNEL AND TREE S SLOPE.

LOCAL EMERGENCIES RELATED TO THE STORMS FROM JANUARY AND FEBRUARY OF 2024.

AS A RESULT, THE NEXT FEW SLIDES LIST OUT THE PROJECTS THAT WERE ORIGINALLY PLANNED TO EITHER BE STARTED OR BE COMPLETED, DEPENDING ON THE PROJECT DURING THE FIVE YEAR

[02:15:02]

THE ICON TO THE LEFT OF EACH PROJECT DEPICTS WHETHER THE CHANGE IS RELATED TO FEASIBILITY, CONCEPTUAL DESIGN, FINAL DESIGN, CONSTRUCTION, OR COMPLETION OF A PROJECT.

THE NEW CITY HALL PROJECT HAVING RECENTLY BEEN COMBINED WITH THE KOHL LIBRARY REBUILDING.

HAS BEEN PROPOSED TO BE MOVED TO FISCAL YEAR 30.

IN AN EFFORT TO ENSURE THAT SIGNIFICANT WORK AND OR COMPLETION WITH VETERANS MEMORIAL PARK AS WELL AS THE ORION CENTER ARE ARE ACHIEVED TO NOT ONLY ALLEVIATE PRESSURE ON STAFF RESOURCES, BUT ALSO TO ENSURE SUFFICIENT FUNDING IS AVAILABLE WITHIN COMMUNITY FACILITIES.

DISTRICT NUMBER ONE.

AND HERE IS A FINAL SLIDE OF RECOMMENDED PROJECT SCHEDULE CHANGES.

AS IT RELATES TO THE NEW APPROPRIATIONS IN THE UPCOMING FISCAL YEAR 25.

HERE WE ARE LOOKING AT THE NUMBER OF ACTIVE PROJECTS BROKEN BY GEOGRAPHICAL LOCATION AMONG THE FOUR DISTRICTS.

I DO WANT TO TO POINT OUT THAT WHILE DISTRICT NUMBER FOUR DOES HAVE A THE FEWEST NUMBER OF PROJECTS IT IS A, A MUCH NEWER DISTRICT IN TERMS OF DEVELOPMENT COMPARED TO OTHER DISTRICTS AND REQUIRES COMPARATIVELY FEWER MAINTENANCE PROJECTS THAN OTHERS.

THAT SAID, WHAT IS NOT BEING SHOWN IN THIS CHART WOULD BE 29 CITYWIDE PROJECTS THAT IMPACT ALL FOUR OF THE DISTRICTS THROUGHOUT THE CITY.

TO DATE, THE CITY HAS COMPLETED A NUMBER OF CIP PROJECTS MANY OF WHICH WERE COMPLETED UNDER BUDGET, RESULTING IN $128,000 BEING RETURNED TO THEIR RESPECTIVE FUNDING SOURCES.

AND I DO WANT TO NOTE, THIS IS NOT AN EXHAUSTIVE LIST OF PROJECTS THAT MAY BE SUBSTANTIALLY COMPLETE.

THIS IS SIMPLY A LIST OF PROJECTS THAT ARE CLOSED OUT, AND AT A POINT WHERE WE ARE ABLE TO TO RETURN THE BUDGET SAVINGS AND AVAILABLE APPROPRIATIONS BACK TO THE FUNDING SOURCE. AND THEN FINALLY, THERE ARE A FEW PROJECTS THAT ARE RECOMMENDED FOR REMOVAL DUE TO A LACK OF NEED.

CAMINO HILLS AND JASPER DRIVE DRIVE SLOPE STABILIZATION AS WELL AS COAL LIBRARY SECURITY FENCING.

NO LONGER HAVING THAT NEED.

OCEAN STREET RESTROOM FACILITY, $769,000.

THE CITY IS REALLY UNABLE TO COMPLETE THE WORK DUE TO REGULATORY REQUIREMENTS, ADA REQUIREMENTS THAT ARE INHIBITING THE CITY FROM FROM MOVING FORWARD WITH THAT WORK.

SO WE'RE REQUESTING TO RETURN THOSE APPROPRIATIONS.

AND THEN FINALLY, THE TWO PROJECTS ALONG PALOMAR AIRPORT ROAD HAVE BEEN ADDRESSED THROUGH OTHER OTHER EFFORTS AND MEASURES.

STAFF WILL BE BEFORE THE CITY COUNCIL REPORTING ON THOSE TWO PARTICULAR PROJECTS IN JUST A SHORT FEW WEEKS.

AND THAT CONCLUDES OUR PRESENTATION.

WE ARE AVAILABLE FOR ANY QUESTIONS AND COMMENTS YOU MAY HAVE.

THANK YOU. DO WE HAVE SPEAKERS? YES. MARY LUCID.

CHRISTINE DAVIS, FOLLOWED BY LAURIE ROBBINS.

GOOD EVENING.

MY NAME IS CHRISTINE DAVIS.

I'M THE EXECUTIVE DIRECTOR OF THE CARLSBAD VILLAGE ASSOCIATION AND MOST OF YOU KNOW ME.

I'VE BEEN RUNNING THE CARLSBAD VILLAGE ASSOCIATION FOR NINE YEARS NOW.

WE SUPPORT THE DOWNTOWN CARLSBAD SOLOPRENEURS, ENTREPRENEURS, AND FAMILY OWNED AND OPERATED BUSINESSES.

THE CARLSBAD VILLAGE ASSOCIATION HAS DONE ITS MOST IMPACTFUL WORK OVER THE LAST FOUR YEARS, THANKS IN PART TO THE CITY OF CARLSBAD, TO THE ECONOMIC DEVELOPMENT SUBCOMMITTEE AND IN LARGE, MOST LARGE PART TO THE INNOVATION AND ECONOMIC DEVELOPMENT DEPARTMENT.

I CANNOT SUPPORT STAFF'S RECOMMENDATION TO CUT STAFFING AND THEREBY REDUCE SERVICES.

IN THE INNOVATION AND ECONOMIC DEVELOPMENT DEPARTMENT.

IT WILL HURT OUR BUSINESS COMMUNITY.

ECONOMIC VITALITY IS ONE OF THE COUNCIL'S FIVE STRATEGIC GOALS.

THE ECONOMIC DEVELOPMENT SUBCOMMITTEE SUPPORTS MAINTAINING THE CURRENT SERVICE LEVELS AND STAFFING LEVELS.

[02:20:02]

A BUDGET DEFICIT IS NOT LOOMING.

AND WE'VE BEEN AFFORDED SOME ADDITIONAL TIME.

WE HAVE APPROXIMATELY 400 BUSINESSES DOWNTOWN.

AND THAT'S JUST IN DISTRICT ONE AND YOU HAVE ME.

JUST ONE PERSON.

I AM PART VILLAGE MANAGER, I AM PART BUSINESS LIAISON.

OUR EVENTS FUND THE WORK THAT I DO, BUT WITHOUT THE INNOVATION AND ECONOMIC DEVELOPMENT DEPARTMENT, I WOULD BE SEVERELY BOOTSTRAPPED DOWN IN THE VILLAGE. PLEASE, I RESPECTFULLY ASK THAT YOU DO NOT APPROVE BUDGET CUTS THAT WILL REDUCE STAFFING OR SERVICE LEVELS.

AS IT WILL NEGATIVELY AFFECT OUR BUSINESS COMMUNITY.

AND I DON'T ASK FOR MUCH.

THIS IS VERY IMPORTANT TO OUR BUSINESSES DOWNTOWN AND THROUGHOUT THE ENTIRE CITY.

THE WORK THAT THE INNOVATION AND ECONOMIC DEVELOPMENT DEPARTMENT HAS DONE AND FROM THE PANDEMIC FORWARD HAS BEEN PRETTY SPECTACULAR. AND WE'RE REALLY WE FEEL LIKE WE JUST HIT OUR STRIDE AND WE HAVE A LOT TO LOOK FORWARD TO.

THE ACTION ITEMS THAT HAVE BEEN PROPOSED ARE TRANSFORMATIVE.

SO WE JUST ASK THAT NO BUDGET CUTS TAKE PLACE IN THIS PARTICULAR DEPARTMENT, AND THAT YOU CONTINUE TO SUPPORT THE BUSINESS COMMUNITY THROUGHOUT CARLSBAD AND DOWNTOWN. THANK YOU.

GOOD EVENING.

SPENDING IN CARLSBAD HAS BEEN GROWING AT AN AVERAGE OF 7% OVER THE PAST TEN YEARS, AND THERE'S NO SIGN THAT IT'S GOING TO SLOW DOWN. CARLSBAD NEEDS THE REVENUE TO KEEP GROWING AT AT LEAST 7%.

AND KEEP UP THE INCREASE IN SPENDING EVERY YEAR.

SO MAKING BUDGET CHECKS, BUDGET CUTS TO THE DEPARTMENTS THAT ARE RESPONSIBLE FOR GENERATING REVENUE SEEMS LIKE IT'S NOT TOO WISE.

SO I'M ASKING COUNCIL TO STAY FOCUSED ON THE REVENUE GROWTH SO THE CITY CAN ACHIEVE A BALANCED BUDGET.

AND JUST ONE OTHER COMMENT ON THE PROJECTS THAT WERE PROPOSED TO BE DONE FURTHER OUT.

THE GRAND AVENUE HAS SOME VERY DANGEROUS PEDESTRIAN CROSSINGS, AND I'VE WITNESSED A COUPLE OF CAR ACCIDENTS THERE, TOO.

AND I SEE THAT THAT'S BEEN PROPOSED TO BE DONE AT A LATER DATE.

PERHAPS THERE'S SOMETHING THAT'S THAT CAN BE DONE LIKE A STOP SIGN OR SOMETHING THAT ISN'T AS MUCH MONEY TO TO TAKE CARE OF THE GRAND AVENUE. THANK YOU.

MARIANA. OKAY.

GOOD EVENING.

SO I CAME HERE TODAY IS MAINLY TO ASK THE CITY COUNCIL TO EXPAND THE CROSSING GUARD PROGRAM TO HIGH SCHOOLS IN THE COMING SCHOOL YEAR.

MY DAUGHTER IS A SOPHOMORE ATTENDING CARLSBAD HIGH SCHOOL.

LAST YEAR, ON DECEMBER 12TH, SHE WAS HIT BY A CAR AT THE INTERSECTION OF CHESTNUT AVENUE AND HIGHLAND DRIVE WHEN SHE WAS WALKING HOME FROM SCHOOL.

AND FORTUNATELY, SHE SURVIVED AND SHE ONLY BROKE HER TIBIA AND FIBULA OF HER RIGHT LEG AND HAD A SURGERY THE NEXT DAY TO RECONSTRUCT HER BONES.

SO IT HAS BEEN MORE THAN FIVE MONTHS SINCE THE ACCIDENT, SHE IS STILL SUFFERING FROM THE PAIN AND THE NERVE DAMAGE, AND SHE STILL CANNOT WALK AND USE HER LEG NORMALLY. AND MY DAUGHTER RECALLED THAT BEFORE CROSSING THE STREET AND THERE WAS AN E-BIKE THAT WENT ACROSS.

AND THEN AS SHE STARTED TO CROSS THE CAR BEHIND THAT E-BIKE DID NOT STOP AND PASS HER.

THE NEXT THING SHE COULD REMEMBER WAS JUST LYING ON THE SIDEWALK AND HAVING A VERY PAINFUL LEG.

AND IF THERE WAS A CROSSING GUARD THERE, OR AT THE INTERSECTION OF VALLEY STREET AND CHESTNUT AVENUE, MY DAUGHTER WOULD HAVE CROSSED OVER THERE AND THIS ACCIDENT PROBABLY WOULD BE AVOIDED.

SO SOME PEOPLE MAY ARGUE THAT HIGH SCHOOL CAN HANDLE THEMSELVES TO CROSS THE STREET.

THEREFORE, WE DON'T NEED THE CROSSING GUARD FOR THE HIGH SCHOOL.

BUT PLEASE KEEP IN MIND THAT THERE ARE WAY MORE STUDENTS IN HIGH SCHOOL THAN THE MIDDLE SCHOOL AND ELEMENTARY SCHOOL WHEN THE SCHOOL IS OVER, SO THERE ARE 2200 STUDENTS LEAVING CARLSBAD HIGH SCHOOL AT THE SAME TIME, NEARLY AT THE SAME TIME, AND THEY JUST WANT TO GET OUT OF THE SCHOOL AS SOON AS THEY

[02:25:10]

AND APART FROM EXPANDING THE CROSS GUARD THE CROSSING GUARD PROGRAM TO HIGH SCHOOL, I ALSO HOPE THE CITY, CAN INCREASE TRAFFIC ENFORCEMENT AND WORK WITH THE SCHOOLS TO ENHANCE THE TRAFFIC SAFETY, AND I HAVE MADE SEVERAL OBSERVATION TRIPS GOING BACK TO THAT INTERSECTION IN THE PAST MONTHS AROUND THIS THIS, THE SCHOOL ENDING TIME AND ALL AND NOTICING A VERY DISTURBING TREND AND LOTS OF VEHICLES THEY JUST DON'T STOP.

THEY DON'T COME TO A COMPLETE STOP.

AND ALSO MANY E-BIKERS THEY JUST TRAVELING AT AN EXCESSIVE SPEED WITHOUT STOPPING.

AND THEN LAST IS I ALSO REMEMBER DURING THE MORNING SCHOOL RUSH HOUR, I USED TO SEE MANY SOME POLICE CAR PATROLLING AND GIVING A WARNING, BUT NOW I DON'T THINK THEY ARE AROUND WHEN THE SCHOOLS ARE OUT.

SO FINALLY.

THERE ARE NO MORE SPEAKERS.

CITY MANAGER, A COUPLE OF THE SPEAKERS WERE CONCERNED THAT THE BUDGET RECOMMENDATIONS MAY RESULT IN A DECLINE IN SERVICE LEVELS.

COULD YOU PLEASE ADDRESS THAT? YES, SIR. AND IF, IF COUNCIL WILL RECALL BACK IN JANUARY AND JANUARY 18TH, WE HAD ISSUED A MEMO TO CITY COUNCIL TO SPEAK TO MY INTENT TO ELIMINATE POSITIONS WAYS THAT WE COULD ULTIMATELY MAKE CUTS SO THAT WE COULD REDUCE THE CITY SPEND.

WE CANNOT PROMISE FOR CERTAIN THAT THERE WON'T BE SERVICE LEVEL IMPACTS.

BUT WHAT WE DID TRY AND DO IS PRIORITIZE THOSE BUDGET CUTS SO THAT WE CAN MAKE SURE AND PROVIDE THE BEST LEVEL OF SERVICE EXTERNALLY, TO OUR CUSTOMERS. IT'S A TOUGH DECISION, AND IT'S A DECISION THAT I DID NOT TAKE LIGHTLY IN MAKING THOSE RECOMMENDATIONS.

BUT UNFORTUNATELY, WHEN EVALUATING THE CITY'S SPEND AND HOW WE'RE ABLE TO PROVIDE SERVICES, THERE ARE TOUGH DECISIONS.

SO ULTIMATELY, WHEN CUTTING IN AN ORGANIZATION, YOU HAVE TO CUT AT AT ALL LEVELS.

AND SO WHETHER IT'S THE CHIEF INNOVATION OFFICER WHICH SPLITS THEIR TIME BETWEEN INNOVATION AS WELL AS ECONOMIC DEVELOPMENT OR DEI POSITION THOSE WERE INCREDIBLY DIFFICULT DECISIONS TO MAKE.

AND I DO UNDERSTAND THAT THERE ARE CHALLENGES ASSOCIATED WITH BEING ABLE TO MAINTAIN THE SERVICE LEVELS.

BUT THAT SAID, THE CUTS THAT ARE BEFORE YOU TODAY, WE FELT THAT THEY WERE REASONABLE.

IT DOES HELP PUT OFF THE BLEED FOR ANOTHER DAY.

AND ULTIMATELY, FROM A SERVICE LEVEL PERSPECTIVE BASED OFF OF A LOT OF THE CONCERNS THAT WE HAVE HEARD, BOTH, I THINK INTERNALLY AND EXTERNALLY PARTICULARLY ON THE ECONOMIC DEVELOPMENT SIDE, THERE ARE OPPORTUNITIES FOR US TO BE ABLE TO MAINTAIN OUR EXISTING SERVICE LEVELS.

SO I, I AM NOT CONCERNED ABOUT MAINTAINING EXISTING SERVICE LEVELS, PARTICULARLY IN THE ECONOMIC DEVELOPMENT DEPARTMENT.

BASED OFF OF AND WE HAVE NOT HEARD COMMENTS YET, BUT I WOULD EXPECT TO HEAR COMMENTS FROM CITY COUNCIL AND WHAT WE WOULD BE ABLE TO DO IS WHEN WE BRING FORTH THE BUDGET ADOPTION ON JUNE 18TH, WE WILL ADDRESS SOME OF THOSE CONCERNS, WHILE AT THE SAME TIME MAINTAINING THE SAME HEADCOUNT AND BUDGETED NUMBERS THAT YOU SEE TODAY.

SO SAID ANOTHER WAY, WE WOULD BASICALLY SLIDE ONE OF THE EXISTING POSITIONS OVER TO ECONOMIC DEVELOPMENT.

WHAT EXISTS TODAY IS A BUDGET THAT HAS ONE ECONOMIC DEVELOPMENT POSITION.

BUT ULTIMATELY WHAT WE WOULD DO IS INCREASE THAT LEVEL TO TWO, MEANING WE WOULD TAKE FROM ANOTHER DEPARTMENT TO GO AHEAD AND SLIDE OVER AND APPROPRIATE THAT SO THAT THEY WOULD HAVE TWO FULL POSITIONS.

SO. THANK YOU.

QUESTIONS FROM COUNCIL START WITH YOU, MISS BHAT-PATEL.

SURE. THANK YOU.

THANK YOU FOR THE PRESENTATION.

AND THANK YOU TO ALL OF THE STAFF THAT'S WORKED ON THIS.

I KNOW IT TAKES A REALLY LONG TIME AND A LOT OF EFFORT.

SO APPRECIATE ALL OF THAT.

I'LL GO THROUGH MY QUESTIONS.

I HAVE A FEW COMMENTS AS WELL, WHICH I KNOW I'LL RESERVE FOR LATER.

I KNOW YOU MENTIONED THERE WAS THE SLIDE THAT WAS ABOUT I BELIEVE IT WAS FOR ADMINISTRATIVE SERVICES.

SPECIFICALLY, YOU HAD MENTIONED SOMETHING AROUND CHANGES HAPPENING IN THAT PARTICULAR DEPARTMENT.

CAN YOU CLARIFY THAT? I HAD JOTTED THAT DOWN, AND I WASN'T ENTIRELY SURE WHAT YOU MEANT BY CERTAIN CHANGES THAT WERE HAPPENING IN THAT PARTICULAR DEPARTMENT.

[02:30:03]

ABSOLUTELY. THANK YOU, MAYOR PRO TEM, FOR THE QUESTION.

YES. IN CONNECTION WITH THE MEMORANDUM REFERENCED BY THE CITY MANAGER THAT WAS ISSUED IN JANUARY OF 2024 WITH THE ELIMINATION OF THE POSITIONS PARTICULARLY AS THEY RELATE TO THE ADMINISTRATIVE SERVICES BRANCH, THERE WOULD BE SIX POSITIONS MOVING FROM WHAT WAS INNOVATION AND ECONOMIC DEVELOPMENT TO INFORMATION TECHNOLOGY, WHICH IS A MOVEMENT FROM THE GENERAL FUND TO THE INFORMATION TECHNOLOGY INTERNAL SERVICE FUND.

OTHER THAN THAT THE POSITIONS THAT WERE PREVIOUSLY WITHIN THE INNOVATION AND ECONOMIC DEVELOPMENT DEPARTMENT THAT ARE NOT MOVING TO IT THEY WOULD BE MOVING TO ADMINISTRATION TO ADMIN.

WELL, ONE POSITION WOULD BE MOVING TO ADMINISTRATION WITHIN THE ADMINISTRATIVE SERVICES BRANCH, AND ONE POSITION WOULD BE RETAINED WITHIN ECONOMIC DEVELOPMENT.

THAT WOULD BECOME A STANDALONE DEPARTMENT.

OKAY. SO TO CLARIFY, I KNOW I'M JUST TRYING TO UNDERSTAND.

I'M TRYING TO CONNECT WHAT WAS JUST SAID AND THAT TOGETHER.

SO THE RECOMMEND WELL BASED ON THE CITY, WHAT THE CITY MANAGER MENTIONED WHAT THE CURRENT PRELIMINARY BUDGET PROPOSES WOULD BE OF THE EXISTING EMPLOYEES FROM INNOVATION AND ECONOMIC DEVELOPMENT, ONE WOULD BE WITHIN ADMINISTRATION, WITHIN ADMIN SERVICES, ONE WOULD BE WITHIN ECONOMIC DEVELOPMENT, WITHIN UNDER ADMINISTRATIVE SERVICES, AND SIX WOULD BE MOVED TO INFORMATION TECHNOLOGY.

BUT ALSO OF COURSE UNDER ADMINISTRATIVE SERVICES BASED ON THE CITY MANAGER'S COMMENTS, IN ORDER TO INCREASE THE LEVEL OF SERVICE WITHIN ECONOMIC DEVELOPMENT, WHICH AS OF TODAY HAS 1.5 FULL TIME POSITIONS ASSIGNED TO THAT FUNCTION WE WOULD HAVE THE OR CITY COUNCIL WOULD HAVE THE OPTION TO CONSIDER MOVING THE POSITION THAT IS CURRENTLY PROPOSED TO BE IN ADMINISTRATION TO ECONOMIC DEVELOPMENT, THEREBY INCREASING THE FULL TIME POSITION COUNT IN ECONOMIC DEVELOPMENT FROM WHAT IS PROPOSED AT 1 TO 2.

OKAY. THANK YOU.

I'LL THINK ABOUT THAT A LITTLE AND SEE IF I HAVE OTHER QUESTIONS.

THE OTHER PIECE I WANTED TO ASK, I THINK YOU SHOWED US THE SLIDE OF THE HISTORY OF OUR RESERVES FOR THE PAST FIVE YEARS.

IT SEEMS LIKE IT'S THE HIGHEST OUR RESERVES HAVE BEEN, AND THEY'VE CONTINUOUSLY RISEN EVEN THROUGH COVID.

AND COULD YOU TELL ME WHAT WAS THE THE PERCENTAGE THAT YOU SAID THAT IT INCREASED BY.

EXCUSE ME. THANK YOU FOR THE QUESTION.

IT DID INCREASE SINCE FISCAL YEAR 2019 2020 BY 80%.

OKAY, GREAT. THANK YOU.

I KNOW YOU ALSO MENTIONED, I THINK THERE WAS SOMETHING ABOUT THE TRANSFER OF FUNDS AND I APOLOGIZE.

I THOUGHT I WROTE DOWN THE SLIDE NUMBER, BUT IT WAS ABOUT TWO DIFFERENT TRANSFERS, ONE AT 14,000,001 AT 7 MILLION.

CAN YOU AGAIN CLARIFY WHAT THOSE WERE BEING UTILIZED FOR? ABSOLUTELY. ONE OF THE LAST ROWS HERE.

THE TRANSFERS LINE ITEM.

THE PRELIMINARY BUDGET RECOMMENDS A TOTAL TRANSFER OUT OF THE GENERAL FUND OF $37.5 MILLION.

ABOUT $14.5 MILLION OF THIS AMOUNT.

RELATES TO COUNCIL POLICY NUMBER 91, WHICH IS THE 6% OF ESTIMATED REVENUES THAT IS DIRECTED OR TRANSFERRED TO THE THREE CAPITAL PROJECT FUNDS, GENERAL CAPITAL CONSTRUCTION, INFRASTRUCTURE REPLACEMENT, AS WELL AS THE TECHNOLOGY INVESTMENT FUND.

AS MENTIONED, WHEN THE BUDGET WAS BEING DEVELOPED, A PRELIMINARY OPERATING SURPLUS WAS IDENTIFIED AND INCORPORATED INTO THE PRELIMINARY PRELIMINARY BUDGET BEFORE YOU THIS EVENING IS TO RECOMMENDED ONE TIME USES, THE FIRST BEING APPROXIMATELY $14 MILLION ADDITIONAL TRANSFER TO GENERAL CAPITAL CONSTRUCTION FUND, AND A $7 MILLION TRANSFER TO WORKERS COMPENSATION FUND.

THANK YOU. OKAY, I KNOW YOU ALSO MENTIONED THAT REVENUE HAS SLOWED DOWN WITH REGARDS TO TOT AND SALES TAX.

IS THAT CORRECT? AND WE'RE ANTICIPATING IT'S GOING TO SOMEWHAT STAGNATE AS WELL.

YES AND NO.

SALES TAX, WHEN WE'RE WHEN WE'RE LOOKING AT WE ARE ESTIMATING AN INCREASE OVER WHAT WE'RE ESTIMATING IN THE CURRENT FISCAL YEAR,

[02:35:05]

SO SALES TAX HAS GONE UP.

BUT TO YOUR POINT YES, THERE THERE IS INDICATION FOR CONCERN.

NUMBER ONE, MUCH OF THE INCREASE WAS ATTRIBUTABLE TO A CORRECTION OF AN ERROR.

BUT NUMBER TWO, THERE ARE CERTAIN COMPONENTS WITHIN OUR SALES TAX BASE THAT THAT WE HAVE OBSERVED IN PREVIOUS REPORTING PERIODS OF EITHER A FLAT LINING THERE, THERE HAS BEEN REALLY NO CHANGE OR GROWTH YEAR OVER YEAR OR QUARTER OVER QUARTER OR EVEN DECLINE IN SOME SEGMENTS.

TRANSIENT OCCUPANCY TAX IS ANOTHER GREAT EXAMPLE WHERE DURING THE FIRST SIX MONTHS AND THE TWO QUARTERLY REPORTS THAT WE REPORTED OUT TO THE CITY COUNCIL, WE WERE REPORTING OUT A LAG. EVEN INCLUDING THIRD QUARTER, WHILE WE WERE REPORTING A LAG BY ABOUT $1.2 MILLION.

BUT AS PREVIOUSLY MENTIONED, WE ARE ANTICIPATING THE SECOND HALF OF THE FISCAL YEAR TO, TO END STRONG.

AND WE'RE CONFIDENT IN THOSE ESTIMATES.

BUT IN TERMS OF MOVING FORWARD, THE FORWARD LOOKING OUTLOOK.

IT WOULD APPEAR THAT THERE ARE HEIGHTENED INDICATORS OF, OF CONCERN COMPARED TO PREVIOUS PERIODS.

YES. OKAY.

THANK YOU. AND I KNOW I'M JUST GOING TO JOG OUR MEMORY A LITTLE BIT, BUT COUNCIL WAS ASKED TO LOOK AT WAYS FOR US TO DIVERSIFY OUR REVENUE STREAMS, OR JUST THINK ABOUT WAYS THAT WE COULD CONTINUE TO IMPROVE UPON WHAT WE WE CURRENTLY HAVE, INCLUDING A 1% SALES TAX INCREASE.

AND CAN YOU EXPLAIN TO ME HOW MUCH WE WOULD HAVE BEEN ABLE TO GENERATE WITH THAT? THE LAST TIME THE SALES TAX OPTION WAS BROUGHT BEFORE THE CITY COUNCIL.

IT I APOLOGIZE, I DON'T HAVE THE EXACT DATE.

IT WAS EITHER. APRIL OF 2023.

WE BROUGHT CAME BACK TO CITY COUNCIL IN OCTOBER OF 2023, WITH THE FINAL OPTIONS MORE SPECIFICALLY RELATED TO A TRANSIENT OCCUPANCY TAX OPTION.

BUT WHEN WE HAD PROVIDED THE THE LATEST ESTIMATE, IT WAS AN ADDITIONAL $40 MILLION IN ADDITIONAL SALES TAX THAT WOULD BE GENERATED FROM A FULL CENT OR 1% INCREASE.

AND, AND THAT WOULD HAVE TO GO TO VOTERS TO DECIDE WHETHER OR NOT THEY'D WANT TO DO THAT.

ABSOLUTELY. OKAY.

AND ALSO TO JUST ASK, IT SOUNDS LIKE OTHERS IN THE REGION ARE ALSO CONSIDERING THAT THERE ARE A NUMBER OF JURISDICTIONS THAT ARE MOVING FORWARD WITH PLACING A MEASURE ON THE 2024 BALLOT.

YES. OKAY. AND WE ARE NOT I'M JUST CLARIFYING THAT.

I JUST WANTED TO ASK THAT QUESTION, BECAUSE I KNOW WE WERE ASKED ABOUT THIS LAST YEAR, AND I HAVE COMMENTS ASSOCIATED WITH IT LATER, SO HOPEFULLY THAT'LL MAKE SENSE.

THEN THE OTHER PIECE I WAS JUST CURIOUS ABOUT IS, I'M ASSUMING UNTIL WE START TO HAVE CONVERSATIONS AROUND INCREASING OUR REVENUE STREAMS IN THE FUTURE, WE MAY CONTINUE TO HAVE TO KEEP REDUCING THE NUMBER OF PERSONNEL IN ORDER TO AVOID THE FISCAL CLIFF THAT MAY AT SOME POINT BE LOOMING.

AGAIN EVALUATE STAFFING WOULD JUST BE ONE OF THE MANY OPTIONS THAT WOULD, OF COURSE, BE EVALUATED AND RECOMMENDATIONS WOULD BE DEVELOPED AS NECESSARY AND PRESENTED TO CITY COUNCIL.

YES. YEAH.

I MEAN, IF WE ARE NOT GOING TO LOOK AT OUTSIDE RESOURCES, LOOKING INWARDS WOULD MEAN CONTINUING TO REDUCE STAFFING, WHICH WE'VE ALREADY DONE IN THE LAST COUPLE OF YEARS.

SO I JUST WANT TO CLARIFY THAT.

OKAY. AND THEN.

I THINK THE OTHER PIECE I JUST WANTED TO ASK ABOUT WAS THE CAPITAL IMPROVEMENT PROGRAM AS WELL.

I KNOW YOU MENTIONED.

THAT THE.

THAT WE'RE, YOU KNOW, WE'VE SHIFTED HOW WE'RE WORKING ON THOSE IN TERMS OF FUNDING AND EVERYTHING.

SO THE ONE QUESTION THAT I JUST WANTED TO CLARIFY, I KNOW WE TALKED ABOUT IT WHEN YOU ALL PRESENTED THIS TO US AS WELL.

BUT JUST AGAIN, FOR THE PUBLIC, THE FINAL COSTS WOULD ARE THEY FACTORED IN WHEN WE'RE I KNOW THEY'RE NOT.

BUT WHEN WE'RE THINKING ABOUT PLANNING AND PLANNING FOR THAT PARTICULAR PROJECT AND WHEN IT SHOWS BEFORE US, HOW DOES THAT.

GET FACTORED IN? ABSOLUTELY. THANK YOU.

YES. THE FINAL COST AND WHEN WE REFER TO FINAL COSTS THE CONSTRUCTION COSTS OR THE FULL COST OF THE PROJECT, THAT IS SOMETHING THAT IS STILL INCLUDED IN IN THE FIVE YEAR CIP.

THE MOST NOTABLE CHANGE THAT IS WITH THIS NEW APPROACH IS STAFF ARE NO LONGER REQUESTING THE CONSTRUCTION APPROPRIATIONS OR THE CONSTRUCTION BUDGET AS PART OF THE ADOPTED CIP, RATHER ONLY WHEN THAT WHEN THE FINAL DESIGN OF THAT RESPECTIVE PROJECT IS PRESENTED AND APPROVED BY THE CITY COUNCIL.

AT THAT POINT ONLY, WILL CITY STAFF BE REQUESTING THE CONSTRUCTION BUDGET? GREAT. THANK YOU. THOSE ARE ALL MY QUESTIONS.

JUST COMMENTS LEFT.

MS. ACOSTA. THANK YOU.

[02:40:02]

AS MY COLLEAGUE SAID FOR THE PRESENTATION AND ALL THE GREAT INFORMATION, I KNOW THIS HAS BEEN A REAL CHALLENGE TO GET US TO FIT ALL THIS INFORMATION TOGETHER INTO THIS PRESENTATION.

I WANTED TO ASK A COUPLE OF QUESTIONS ABOUT THE RESERVE RESERVE POLICY.

AGAIN, I FORGOT THE SLIDE NUMBER, JUST AS MY COLLEAGUE WAS WAS MENTIONING.

SHE FORGOT HERS. THE THE RESERVE POLICY WHERE WE TALK ABOUT SPENDING DOWN THIS FIRST YEAR, IT WAS A BAR GRAPH SLIDE.

AND I WAS WONDERING MY MY QUESTION WAS IF WE'RE GOING TO BE PUTTING RESERVE FUNDS INTO DIFFERENT FUNDS TO.

IT'S NOT THIS ONE. SORRY.

I WISH I HAD WRITTEN DOWN THE NUMBER AT THE TIME.

IF WE'RE GOING TO BE KIND OF SQUIRRELING FUNDS AWAY INTO DIFFERENT POTS OF MONEY IN ORDER TO BE DOING CAPITAL PROJECTS, THEN WILL WE BE ABLE TO MAINTAIN OUR RESERVE POLICY? NUMBER OR PERCENTAGE OF RESERVE POLICY? THANK YOU FOR THE QUESTION COUNCIL MEMBER.

WAS THIS A SLIDE? I DON'T THINK SO.

OKAY. I WILL COME BACK.

IT WAS A SLIDE THAT HAD LIKE THREE BLUE GRAPHS AND ONE WAS VERY SHORT, AND THEN THE OTHERS WERE GETTING HIGH AGAIN.

OH, IS IT ABOUT THE RESERVES? YES, IT'S SPECIFICALLY ABOUT THE RESERVES.

SO IT'S THE NEXT ONE.

MAYBE FIVE YEAR PROJECTION OF THE RESERVES.

YES. THAT'S IT.

THANK YOU FOR YOUR PATIENCE.

YES. SO AS IT RELATES TO SETTING ASIDE THE $17.5 MILLION IN AN ASSET REPLACEMENT RESERVE THAT HAS NO BEARING ON WHAT WE'RE LOOKING AT HERE.

THIS WOULD BE BASICALLY REALLOCATING THE EXISTING GENERAL FUND RESERVE, THE PORTION OF THE WHAT WE WERE PROJECTING AT $149 MILLION. THESE ARE THE ANNUAL PROJECTED SURPLUSES THAT WOULD BE ADDITIVE TO THE GENERAL FUND RESERVE.

TO YOUR POINT, THOUGH, HOWEVER, WHEN WE'RE LOOKING AT THESE BARS OR THESE ANNUAL PROJECTED SURPLUSES DIMINISH AT SOME POINT MANY YEARS IN THE FUTURE.

YES. ASSUMING THE CITY WERE TO NOT TAKE ANY ACTION AND THESE ESTIMATES WERE TO COME TO FRUITION AT SOME POINT, MANY YEARS DOWN THE LINE, IT WOULD BEGIN TO ERODE INTO CLOSER TO THE GENERAL FUND RESERVE AND THE 40% POLICY TARGET.

WE WOULD CERTAINLY BRING THAT INFORMATION BACK IN THE APPROPRIATE RECOMMENDATIONS.

IF WE IF STAFF FELT THAT THAT IT WAS A SERIOUS RISK.

I WILL SAY, HOWEVER, WITH THE CITY COUNCIL AUTHORIZING AN ASSET REPLACEMENT RESERVE AND MAKING ALLOCATIONS OR CONTRIBUTIONS TO IT, THE CITY COUNCIL IN THE FUTURE STILL HAS FULL DISCRETION TO REPURPOSE THOSE DOLLARS.

JUST BECAUSE THEY'RE SET ASIDE TODAY DOES NOT NECESSARILY MEAN THAT THE CITY COUNCIL WOULDN'T BE ABLE TO REPURPOSE THEM DURING PERIODS OF INCREASED NEED OR ECONOMIC UNCERTAINTY. OKAY.

GREAT. THANK YOU. AND THANK YOU FOR BEING SO PATIENT WITH MY INARTICULATE QUESTION.

OKAY. NOW WE CAN GO TO ONE THAT I HAVE MORE CLARITY AROUND.

I WANTED TO ASK ABOUT THE FEE STUDIES.

YOU MENTIONED AT THE BEGINNING HOW WE HAVE BEEN CONDUCTING FEE STUDIES.

WE DID THAT BIG 1 IN 2022, AND STAFF'S GOING TO BE ON TOP OF DETERMINING HOW FEES ARE SET AND WHETHER THEY ARE EQUIVALENT WITH OUR COST RECOVERY OR NOT.

AND THAT SHOULD BE INTENTIONAL.

SO I WANTED TO ASK ALSO, YOU HAD MENTIONED AND OUR STAFF REPORT ALSO MENTIONED A BIT ABOUT NEW FEES, AND I'M WONDERING IF YOU COULD TALK ABOUT THE NEW FEES THAT ARE PROPOSED AND HOW THAT WILL IMPACT OUR BUDGET.

THANK YOU FOR THE QUESTION.

THE INCREASE IN FEES, I WOULD SAY TO, TO ANSWER YOUR LAST QUESTION FIRST WOULD CERTAINLY DEPEND ON ON WHICH PARTICULAR FEE WE'RE TALKING ABOUT.

BUT I WOULD SAY IN FOR THE MAJORITY OF THESE, WE'RE NOT TALKING ABOUT A SIGNIFICANT OR A MATERIAL AMOUNT OF ADDITIONAL REVENUE.

THIS IS REALLY AN EFFORT TO TRY TO RECOVER A PORTION OF THE COSTS THAT ARE ASSOCIATED WITH PROVIDING THE SERVICES.

IN REGARDS TO THESE PARTICULAR FEES, WERE THERE ANY? I'M HAPPY TO GO THROUGH EACH OF THEM.

I WAS WONDERING IF THERE'S ANYTHING IN HERE THAT IS EXPECTED TO BE LIKE REALLY?

[02:45:03]

SO FOR EXAMPLE, THE SHORT TERM VACATION RENTAL PERMIT APPLICATION FEE, I READ ABOUT IT IN THE IN THE STAFF REPORT.

AND I'M WONDERING LIKE HOW MUCH IS THIS REALLY GOING TO MOVE THE NEEDLE? IS THIS REALLY GOING TO HELP? IT DIDN'T SEEM LIKE IT WAS TOO BIG OF AN INCREASE IN THE FEES THAT WE COLLECT.

SO I JUST WONDERED IF YOU COULD ELABORATE.

SURE. AND IF I MAY, I WOULD LIKE TO TAKE A MOMENT JUST TO PULL UP THE THE EXACT FIGURES.

BUT IN THE MEANTIME, I'M.

OKAY. IF THERE ARE FURTHER QUESTIONS, I CAN.

OH, OKAY. KEEP ASKING QUESTIONS WHILE YOU'RE DOING THAT.

OKAY. YEAH, I DIDN'T THAT SOUNDS GREAT.

I, I MEAN, I THINK THAT'S THAT'S MY REAL QUESTION IS HOW THE NEW PROPOSED FEES ARE GOING TO MAKE AN IMPACT IF, IF AT ALL.

AND AND HOW WE'RE GOING TO MAKE SURE THAT WE ARE CONTINUING TO EVALUATE WHETHER THE FEES ARE EQUITABLE.

I KNOW THAT WE ARE, BECAUSE I SAW THE LAST PROCESS.

I WAS HERE WHEN WE WALKED THROUGH WHAT EACH OF THE FEES ARE, AND WE USED CONSULTANT TO MAKE SURE THAT WE WERE LOOKING AT EVERYTHING.

I KNOW THAT ON THE LEGISLATIVE SUBCOMMITTEE, WE ALSO TALK ABOUT LEGISLATION THAT HAS HAS, YOU KNOW, KIND OF DISCUSSED WHETHER LOCAL GOVERNMENTS ARE DOING THIS.

AND WE ARE. SO WE DON'T NEED TO BE FORCED TO DO THAT BECAUSE WE'RE ALREADY DOING IT.

SO I THINK THAT'S THE BIG QUESTION.

THE REST OF WHAT I HAVE IS COMMENTS.

OKAY. THANK YOU.

I'M A PORTION OF THE WAY DONE.

WHEN WE'RE LOOKING AT CITY PLANNER DETERMINATION, THE PROPOSED FEE AMOUNT WOULD BE $1,047.

FOR FOR EACH OCCURRENCE.

FOR EACH OF.

EACH OCCURRENCE.

SHORT TERM VACATION RENTAL PERMIT APPLICATION FEE WOULD BE $220 PER APPLICATION.

THE.

I APOLOGIZE, THAT MAY BE WHAT I'VE GOT SO FAR.

THAT'S OKAY. MAYBE WE'LL MOVE DOWN THE LINE.

AND IF YOU HAVE ANY OTHER INFORMATION LATER TO ADD, I THINK IT MIGHT BE HELPFUL.

JUST SEEMED I WONDERED IF THERE WAS ANYTHING IN HERE THAT WAS THAT NEEDED TO BE CALLED OUT, OR IF THEY WERE KIND OF SMALLER AMOUNTS AND JUST KIND OF PART OF DOING GOOD BUSINESS.

SO THAT THAT WAS REALLY IT SOUNDS LIKE THIS IS ALL PART OF THE NORMAL COURSE OF DOING BUSINESS, THAT WE NEED TO REEVALUATE OUR FEES AND KEEP THINGS TIGHT AND EFFICIENT.

I WILL ADD, IN THE MEANTIME THAT THESE FEES ARE NOT UNORDINARY TO SEE FROM, FROM MUNICIPALITIES.

I WOULD SAY MORE CITIES THAN NOT HAVE THESE FEES IN PLACE.

BUT TO YOUR ORIGINAL QUESTION, NO, THE INTENT IS NOT TO GENERATE AN ABUNDANCE OF REVENUE.

IT IS REALLY JUST A SMALL STEP TO TOWARDS COST RECOVERY TO ENSURE THAT THERE IS A LEVEL OF COST RECOVERY FOR PROVIDING THESE SERVICES. OKAY.

GREAT. THANK YOU. I'M DONE WITH QUESTIONS, MISS BURKHOLDER.

THANK YOU. ZACH, YOU'LL HAVE TIME BECAUSE I'M ACTUALLY GOING TO ASK THE QUESTION OF THE CITY MANAGER.

OKAY. I'M STILL TRYING TO WRAP MY HEAD AROUND THE QUESTION THAT YOU ASKED ABOUT ADMIN SERVICES AND EDD AND THIS MOVING AND I'M NOT FOLLOWING THE GAME HERE.

SO I'M TRYING TO MAYBE A DIFFERENT WAY OF EXPLAINING IT THAN THAT.

THE PROPOSED ELIMINATION OF POSITIONS THAT ARE SLOTTED THAT WE ISSUED BACK ON JANUARY 11TH, JANUARY 18TH, THOSE POSITIONS ARE NOT INCLUDED IN THE BUDGET.

NONE OF THE POSITIONS ARE INCLUDED IN THE BUDGET.

THAT SAID, THEY'RE WHAT IS INCLUDED IN THE BUDGET IS ALTHOUGH WE'RE ELIMINATING THE CHIEF INNOVATION OFFICER POSITION AS WELL AS ACTUALLY LET ME DEI.

THE. THE IT SYSTEM SPECIALIST.

YEAH, IT'S THE DEPUTY CITY CLERK, THE SENIOR OFFICE SPECIALIST, THE MANAGEMENT ANALYST, THE LEAD LIBRARIAN, THE PRODUCTION TECHNICIAN, THE PARKS MAINTENANCE WORKER, THE ASSOCIATE ENGINEER, THE BUSINESS SYSTEM SPECIALIST, THE SENIOR ENVIRONMENTAL SPECIALIST, THE CHIEF INNOVATION OFFICER AND THE SENIOR PROGRAM MANAGER FOR DIVERSITY, EQUITY AND INCLUSION. THOSE ARE NOT INCLUDED IN THE BUDGET.

NOW, THAT MEANS THAT ECONOMIC DEVELOPMENT WOULD BE GOING FROM 1.5 POSITIONS DOWN TO ONE.

WE ARE REAPPROPRIATING, OR WE HAVE THE ABILITY TO REAPPROPRIATE POSITIONS THAT EXIST CURRENTLY IN THE CITY, AND WE WOULD THEN MOVE ONE OF THOSE POSITIONS

[02:50:10]

SO WE WOULD THEN BRING THE FTE COUNT FROM 1 TO 2.

DOES THAT MAKE SENSE? SO MOVING CHIEF INNOVATION OFFICER TYPE POSITION TO ECONOMIC DEVELOPMENT, AND THAT'S WHERE HE IS RIGHT? YEAH. THE DEPARTMENT EXISTS CURRENTLY AS INNOVATION AND ECONOMIC DEVELOPMENT AND THERE ARE MULTIPLE POSITIONS THAT ARE IN THAT DEPARTMENT. SO WITH THE INNOVATION, THE ECONOMIC DEVELOPMENT OR AT LEAST THE CHIEF INNOVATION OFFICER POSITION BEING ELIMINATED, THAT MEANS THAT WE STILL HAVE ADDITIONAL POSITIONS THAT ARE LEFT OVER WITHIN THAT DEPARTMENT.

THE DEPARTMENT WE ARE ABSORBING SOME OF THE POSITIONS ARE GOING OVER TO IT, THE OTHER POSITION WAS PLANNING ON GOING OVER TO ADMINISTRATIVE SERVICES RATHER THAN NOW GO TO ADMINISTRATIVE SERVICES.

THAT POSITION WILL GO BACK TO ECONOMIC DEVELOPMENT.

SO THEN THEY'LL HAVE TWO POSITIONS.

YEAH. I MEAN, MY QUESTION IS, SIMILAR TO WHAT MISS DAVIS WAS INTIMATING IN HER COMMENTS.

I DON'T WANT SMALL BUSINESSES TO NOT HAVE THE RESOURCES THEY NEED.

IN FACT, I HAVE A BEAUTIFUL EXAMPLE OF THE IMPORTANCE OF THE ECONOMIC DEVELOPMENT DEPARTMENT JUST THIS WEEK.

A BIG KUDOS TO THAT STAFF, BY THE WAY WITH A SMALL BUSINESS COMING TO THE VILLAGE.

SO I GUESS I'M JUST TRYING TO I MEAN, I HEARD YOU SAY SERVICE LEVELS WOULD BE REDUCED RELATIVE TO THAT, SO I DON'T WANT JUST A WARM BODY DOING IT.

IT HAS TO BE LIKE A LIKE MISS DAVIS WAS SAYING, WE'RE WE'RE IN THE STRIDE.

WE'RE, YOU KNOW, WE'RE MAKING THESE MAJOR LEAPS AND BOUNDS.

AND SO I, I JUST WANTED TO KIND OF GET THAT CLEAR IN MY HEAD.

AND IT'S STILL LIKE A LITTLE BIT FUZZY, BUT, OKAY, SERVICE LEVELS WON'T DEPLETE.

THAT'S GOOD. YEAH.

WE'RE GOING WE WOULD BE GOING FOR WHAT EXISTS IN THE CURRENT BUDGET TODAY, NOT THE PROPOSED BUDGET, BUT THE BUDGET THAT WE'RE OPERATING IN IS 1.5 POSITIONS FOR ECONOMIC DEVELOPMENT. THE BUDGET THAT WE'VE PROPOSED HAS ONE POSITION.

THE BUDGET THAT WE WILL PRESENT FOR ADOPTION FOR CITY COUNCIL WILL HAVE TWO POSITIONS.

SO THAT'S WHERE IT'S OUR BELIEF THAT WE'LL BE ABLE TO MAINTAIN SERVICE LEVELS.

I THINK THAT'S A FIX.

SO THANK YOU.

I DON'T HAVE ANY OTHER QUESTIONS.

MISS LUNA. QUESTIONS? JUST TWO QUESTIONS.

WHAT WOULD BE THE COST SAVINGS BY THAT CHANGE? NO COST SAVINGS BECAUSE WE ARE NOT ADDING ANY POSITIONS.

OKAY. SECONDLY, ZACH, GOING BACK TO THE 40 MILLION WE COULD POTENTIALLY REALIZE FROM AN INCREASED SALES TAX BACK THEN, IS THAT OUR CUT OR IS THAT AFTER EVERYBODY I MEAN, HAS EVERYBODY GOTTEN THEIR PIECE OUT OF IT THE COUNTY, YOU KNOW.

THAT WOULD BE THE CITY'S FULL SHARE.

SO THAT WOULD BE OUR NET.

OKAY. THANK YOU. I DON'T HAVE ANY QUESTIONS, BUT I DO HAVE SOME COMMENTS.

I'LL BEGIN THE COMMENTS.

THERE'S BEEN A LOT OF TALK ABOUT THE ADJUSTMENT OF THE WHAT WAS IT? 12 POSITIONS ELIMINATED.

A LOT OF MY CONVERSATIONS WITH CITY MANAGER ARE A LOT OF GIVE AND TAKE, AND A LOT OF QUESTIONS THAT I ASK ABOUT THINGS LIKE THE BUDGET.

BUT WHAT I SAW ON SLIDE 38, IT SHOWS WE ARE DECLINING.

OUR RESERVE SURPLUS IS DECLINING YEAR AFTER YEAR, WHICH MEANS WE'RE GOING TO START TO TO BECOME IN A POSITION WHERE WE'RE SPENDING MORE THAN WE'RE BRINGING IN. I'M NOT GOING TO WAIT UNTIL THAT DAY HAPPENS BEFORE I ASK THE CITY MANAGER TO TAKE SOME ACTION.

SO MY CONVERSATION WITH THE CITY MANAGER WAS, PLEASE DON'T EVER PUT A BUDGET THAT'S NOT BALANCED IN FRONT OF THIS COUNCIL.

WE DON'T WANT TO BE THE FIRST COUNCIL TO HAVE TO DEAL WITH THAT.

SO I ASKED HIM TO START THINKING NOW ABOUT THE SEVERAL YEARS AHEAD.

AND I LEFT IT AT THAT, AND HE MADE SOME VERY DIFFICULT DECISIONS.

HE TALKED WITH HIS STAFF, HE MOVED THINGS AROUND, AND HE'S FOUND A WAY TO KEEP THE SAME SERVICE LEVELS BY MOVING RESPONSIBILITIES AROUND.

BUT TO BE ABLE TO SAVE THE MONEY THAT IS GOING TO AFFECT OUR BUDGET IN THE FUTURE.

SO I'M PRETTY HARDCORE ABOUT SAYING, I TOLD THE CITY MANAGER, GIVE ME A BALANCED BUDGET FOR MANY YEARS INTO THE FUTURE AND HE DID.

AND THEN FOR ME TO SAY, NO, I DON'T LIKE THAT.

I WANT IT DIFFERENT THEN HOW DO I GO BACK TO HIM LATER AND SAY, I ASKED YOU TO GIVE ME A BALANCED BUDGET.

[02:55:06]

AND NOW IT'S NOT A BALANCED BUDGET.

IT'S AN ODD SITUATION TO PUT US IN, TO PUT HIM IN.

SO I'M GOING TO SUPPORT THE BUDGET THE WAY IT'S PRESENTED WITH THESE ADMINISTRATIVE CHANGES.

MISS BHAT-PATEL.

SURE. THANK YOU.

THANK YOU FOR THE PRESENTATION AGAIN AND AGAIN TO ALL OF THE STAFF THAT'S WORKED REALLY HARD ON THIS.

AND OF COURSE ALL THE LEADERSHIP THAT HAS GONE INTO THIS, I THINK, YOU KNOW, OF COURSE IT IS, IS A VERY AWESOME AND BALANCED BUDGET.

I DO THINK BEFORE I GET INTO SOME MORE OF MY COMMENTS, JUST BASED ON WHAT THE MAYOR WAS SHARING, I DO THINK THAT WE AS A COUNCIL, AS WE CONTINUE TO LOOK FORWARD, REALLY NEED TO THINK OF WAYS THAT WE CAN THINK INTO THE FUTURE AND WAYS TO INCREASE OUR REVENUE STREAMS, BECAUSE, AS I MENTIONED EARLIER, FOR US TO KEEP ASKING OUR CITY MANAGER TO MAINTAIN SERVICE LEVELS AT THIS LEVEL AND WITHOUT INCREASING OUR REVENUE STREAMS, MEANS THAT WE AT SOME POINT WILL CONTINUE TO HAVE TO LOOK INWARD, WHICH WOULD MEAN THAT WE'RE CUTTING POSITIONS AGAIN.

AND I HAVE TO SAY THAT MAKING OUR STAFF HAVE TO WORK OVERTIME IS GOING TO BE DIFFICULT TO CONTINUE TO ATTRACT TALENT.

THAT'S SOMETHING WE HEAR NOT ONLY IN THIS INDUSTRY, BUT WE HEAR IT EVERYWHERE.

AND IF WE WANT TO RETAIN THAT TALENT, WE'RE GOING TO NEED TO MAKE SURE THAT WE'RE ACTUALLY STAFFED APPROPRIATELY.

SO I'M JUST GOING TO LEAVE IT AT THAT.

I MIGHT SAY MORE AFTER MY OTHER PARTS OF MY COMMENTS, BUT I DO THINK THAT CONTINUING TO ASK, I MEAN, NOW WE'RE AT 24 PEOPLE DOWN IN THE LAST COUPLE OF YEARS CONTINUING TO ASK THAT WE MAINTAIN THE SERVICE LEVELS THAT OUR COMMUNITY CLEARLY DESERVES.

WITHOUT EVEN THINKING ABOUT FROM A POLICY PERSPECTIVE, WHAT WE'RE GOING TO DO, I THINK, IS NOT FAIR TO OUR STAFF AT ALL.

SO WITH THAT, AND I KNOW THAT I'M NOT.

THAT'S NOT A COMMENT TO YOU, SCOTT.

YOU OR MR. CHADWICK.

YOU HAVE TO DO WHAT WE TELL YOU TO DO, AND THAT'S WHAT YOU DID.

AND SO I APPRECIATE WHAT YOU HAD TO NAVIGATE THROUGH.

I JUST THINK THAT WE, AS A COUNCIL, NEED TO ACTUALLY TAKE THIS RESPONSIBILITY MORE SERIOUSLY THAN WE HAVE IN THE PAST YEAR.

AND I DO THINK THAT THERE IS A WAY FOR US TO LOOK FORWARD AND DO THAT.

SO WITH THAT, I DO THINK THAT THE BUDGET DOES, YOU KNOW, HIT THE MARK IN MANY AREAS.

I YOU KNOW, OF COURSE, IT'S GREAT TO SEE THAT OUR REVENUES HAVE GROWN.

AND, YOU KNOW, ABOVE THE ESTIMATES FOR THE CURRENT FISCAL YEAR.

AND I DO APPRECIATE THAT COMING OUT OF THE PANDEMIC, WE SET VERY CONSERVATIVE REVENUE ESTIMATES FOR THE PAST TWO BUDGET CYCLES.

I DO THINK WE'VE DONE A GREAT JOB NAVIGATING A REALLY CONFUSING AND TRICKY ECONOMIC TIME, AND THAT'S A HUGE CREDIT TO YOU ALL FOR DOING THAT.

THIS BUDGET, OF COURSE, CONTINUES TO MAKE SURE THAT WE'RE INVESTING IN PUBLIC SAFETY, WHICH IS, I KNOW, A TOP PRIORITY FOR ALL OF US, COMMUNITY SERVICES YOU KNOW, PARKS, RECREATION, LIBRARIES, ARTS AND CULTURE.

SO AGAIN, I WANT TO THANK ALL OF YOU FOR DOING THAT.

THERE ARE A COUPLE OF AREAS FOR ME THAT ARE CONCERNING SPECIFICALLY, IDEALLY, AT A TIME WHEN WE ARE SEEING SURPLUS, WE SHOULD FIND OTHER WAYS TO EITHER INCREASE REVENUE OR REDUCE COSTS. AND I FEEL LIKE AGAIN, AS A COUNCIL, WE REALLY NEED TO BE DOING THAT BECAUSE WE CANNOT KEEP TASKING OUR CITY MANAGER TO HAVE TO REDUCE PERSONNEL. I WANTED TO TALK ABOUT INITIALLY THE CUT FOR THE FIELD POSITION FOR DIVERSITY, EQUITY AND INCLUSION AND WHAT THE BUDGET PROPOSES TO DO WITH THE DEPARTMENT RESPONSIBLE FOR ECONOMIC DEVELOPMENT.

SO I'LL START OFF WITH DEI BECAUSE I KNOW THAT'S SOMETHING I CHAMPIONED.

AND IN 2021, THE CITY CREATED THAT POSITION DEDICATED TO DIVERSITY, EQUITY AND INCLUSION.

WE WORKED HARD ON THIS AS A COUNCIL.

IT TOOK A WHILE AND WE FINALLY GOT THERE, AND TO GET IT TO WORK, TO GET IT TO PASS, I KNOW, I KNOW, IT TOOK A WHILE AND I KNOW YOU ALL WERE SITTING THERE WITH ME AND I APPRECIATE IT VERY MUCH.

IT IS AN INVESTMENT IN OUR WORKFORCE, AND I CAN TELL YOU THAT FROM PERSONAL CONVERSATIONS WITH EMPLOYEES THROUGHOUT THE ORGANIZATION, I PERSONALLY HAVE HEARD IT'S TRULY MADE A DIFFERENCE AND MATTERED TO THEM.

THIS, YES, SHOWED OUR COMMITMENT TO DEI AND FOCUSED ATTENTION ON GROWTH IN THAT PARTICULAR AREA.

IN 2022, THE CITY COUNCIL ADOPTED THE TWO YEAR DEI WORK PLAN, AND IT FOCUSED ON DISMANTLING STRUCTURAL BARRIERS TO ACHIEVING DIVERSITY, EQUITY AND INCLUSION, CREATING A SENSE OF BELONGING, AMPLIFYING MARGINALIZED VOICES, ENGAGING OUR EMPLOYEES ON THE CITY'S DEI NEEDS, AND PROVIDING SERVICES TO SUPPORTING BELONGING FOR ALL EMPLOYEES. AND JUST A FEW YEARS LATER, WE'RE ASKING TO CONSIDER CUTS TO DEI STAFFING, WHICH TO ME IS A BUMMER.

I CAN TELL YOU THAT THE WORK ISN'T DONE ON DEI, SO I THINK IT'S A PREMATURE.

IT'S PREMATURE.

DEI, AND I'LL SAY DIVERSITY, EQUITY AND INCLUSION IS ABOUT SUPPORTING, YES, OUR INTERNAL WORKFORCE.

BUT AS WE CONTINUE TO WORK ON THAT AS AN AGENCY, WORKFORCE RETENTION AND WORKFORCE TALENT IS SOMETHING THROUGHOUT ALL OF OUR INDUSTRIES.

[03:00:04]

SOMETHING ELSE THAT I THINK IS ESSENTIAL TO POINT OUT IS THAT EVERY ITEM WE WORK ON FOR OUR COMMUNITY SHOULD BE LOOKING AT IT FROM THAT LENS TO ENSURE THAT WE ARE MEETING THE NEEDS OF OUR ENTIRE COMMUNITY.

WHEN I FIRST ENVISIONED THIS POSITION, I SAW IT AS SOMETHING THAT WOULD START WITH THE BASICS, WHICH IS OBVIOUSLY LOOKING INWARD AND EVENTUALLY WOULD GROW INTO SOMETHING THAT WOULD TRULY EMBODY WHAT WE HAVE ADOPTED AS A VALUE TO CENTER DIVERSITY, EQUITY AND INCLUSION.

AND I WANT TO CLARIFY, BECAUSE I KNOW THAT DEI TENDS TO BE A BUZZWORD FOR FOLKS, AND PEOPLE GET REALLY STRESSED OUT ABOUT IT.

BUT DIVERSITY, EQUITY AND INCLUSION DOES NOT JUST MEAN ETHNICITY AND RACE.

IT MEANS INTERGENERATIONAL DIVERSITY.

IT MEANS PEOPLE OF DIFFERENT ABILITIES.

IT MEANS PEOPLE OF DIFFERENT WALKS OF LIFE.

AND SO THOSE ARE ALL THE PEOPLE WITHIN OUR OWN COMMUNITY.

I THINK IT'S TRULY SOMETHING THAT WE SERVE.

IT TRULY MEANS THAT WE WOULD SERVE THE ENTIRETY OF OUR COMMUNITY.

AND I THINK THAT WHEN WE MAKE THOSE DECISIONS AND WE PUT FORWARD PROJECTS WITHIN OUR COMMUNITY, WE HAVE TO DO IT WITH THAT.

AND I KNOW WE DO IT TO A CERTAIN EXTENT, BECAUSE WE'RE ALL TRAINED IN A CERTAIN LEVEL OF MAKING SURE THAT WE ARE.

BUT SOMEONE WHO IS TRAINED PROFESSIONALLY TO DO THAT WORK, JUST LIKE WE HAVE SUBJECT MATTER EXPERTS FOR OTHER THINGS WITHIN OUR ORGANIZATION, I FEEL LIKE WE'RE GOING TO DO A DISSERVICE TO OUR EMPLOYEES AND OUR COMMUNITY WITHOUT HAVING THIS POSITION.

SO AND GIVING IT MORE TIME, HONESTLY, WE ONLY WE DECIDED TO MOVE FORWARD WITH IT IN A TIME OF NEED.

AND PERSONALLY, IT SHOULD HAVE EXISTED FROM THE OUTSET.

AND NOW, SIMILAR TO A TREND WE'RE SEEING ACROSS THE COUNTRY, WE ARE DISINVESTING IN A POSITION THAT I BELIEVE TRULY MATTERS.

AND UNFORTUNATELY, I AGAIN, I DO THINK THAT WE SHOULD HAVE PRIORITIZED.

SO I DON'T SPECIFICALLY SUPPORT THAT CUT.

IT GOES AGAINST WHAT MANY OF MY CONSTITUENTS, MANY IN THE ORGANIZATION THAT I'VE AT LEAST SPOKEN TO AND WHAT I BELIEVE.

AND THEN ON THE ECONOMIC DEVELOPMENT FRONT I, YOU KNOW, I HEARD THAT THERE MIGHT BE A FIX.

I JUST DON'T FEEL THAT, YOU KNOW, YOU KNOW, WE WE STARTED LET ME START OFF WITH, YOU KNOW, OBVIOUSLY THIS STARTED BACK IN 2020.

THE SUBCOMMITTEE, ECONOMIC DEVELOPMENT SUBCOMMITTEE, THE FORMER MAYOR AND I WERE ON IT.

NOW, THE CURRENT MAYOR AND I ARE ON IT, AND I'VE BEEN ON THERE FOR FOUR YEARS, AND I'VE HAD THE PLEASURE OF WORKING WITH CARLSBAD VILLAGE ASSOCIATION, THE CHAMBER, VISIT CARLSBAD TO REALLY UNDERSTAND WHAT IS GOING ON WITH OUR BUSINESS COMMUNITY.

I ALSO AM MARRIED TO A BUSINESS OWNER, SO I HAVE THE PRIVILEGE OF REALLY UNDERSTANDING WHAT GOES IN THE DAY, IN AND DAY OUT OF WHAT YOU WHAT THE BUSINESS COMMUNITY GOES THROUGH. AND I THINK THAT, YOU KNOW, WHAT WE WERE ABLE TO DO FROM THOSE PARTICULAR ACTIONS IS REALLY HELP SMALL BUSINESSES WITH PROGRAMS AND CREATE AND HOPEFULLY HAVE THAT RECOMMENDATION TO HAVE A DEDICATED SMALL BUSINESS LIAISON ENGAGE WITH THE BUSINESSES ON SOLUTIONS FOR WHETHER IT'S PARKING, MOBILITY JUST REALLY THINKING OF WAYS THAT WE CAN CONTINUE TO HAVE FOLKS, AGAIN, TALKING ABOUT RETENTION AND OUR RECRUITMENT AND RETENTION OF OUR WORKFORCE.

BUT I DO THINK THAT BASED ON OUR WORK AND THE INFORMATION THAT WE HAD AT THE TIME, WE HAD OBVIOUSLY RECOMMENDED WE WANTED TO MAINTAIN SERVICE LEVELS.

AFTER HEARING THE PRESENTATION, IT SEEMS LIKE THERE MAY BE SOME NEW IDEAS.

HOWEVER, I DON'T KNOW IF IT'S BEEN FULLY VETTED BY OUR BUSINESS COMMUNITY, AND I JUST PERSONALLY DON'T FEEL COMFORTABLE WITH MAKING THAT DECISION WITHOUT TALKING TO OUR BUSINESS COMMUNITY, BECAUSE I WANT TO MAKE SURE THEY FEEL COMFORTABLE.

THEY'RE THE ONES THAT ARE GOING TO BE SERVED WITH THIS.

AND SO I THINK I PERSONALLY WOULD WANT TO MAKE SURE THAT THIS ACTION IS BACKED BY ALL OF OUR BUSINESS ORGANIZATIONS.

AND IF THERE IS A WAY FOR US TO, YOU KNOW, HAVE THE ABILITY TO SEND IT OFF TO ECONOMIC DEVELOPMENT SUBCOMMITTEE, WE CAN HAVE I KNOW WE DON'T HAVE A SCHEDULED MEETING, BUT WE COULD HAVE A POTENTIALLY SPECIAL MEETING TO MAKE SURE THAT, AGAIN, CVA, CARLSBAD VILLAGE ASSOCIATION, THE CHAMBER AND VISIT CARLSBAD HAVE AN OPPORTUNITY TO AT LEAST SEE IT.

I KNOW WE HAVE A COMMUNITY BUDGET WORKSHOP ON THURSDAY, BUT AGAIN, IN ORDER TO GET THAT TARGETED FEEDBACK FROM THOSE KEY STAKEHOLDERS, I DO FEEL THAT WE NEED TO HAVE THAT OPEN AND PUBLIC PROCESS ENGAGING WITH THEM.

AND I OBVIOUSLY AM VERY COMMITTED TO MAKING SURE THAT YOU ALL ARE WELL REPRESENTED.

SO YOU KNOW, I WON'T DO IT NOW, BUT I WILL TRY TO MAKE A MOTION TO HAVE THAT COME BACK TO US IF I HAVE TO, UNLESS YOU CAN BASE DIRECTION OFF OF WHAT I'VE ALREADY SHARED. AND WITH THAT, I AM DONE.

MISS ACOSTA. THANK YOU.

BEFORE I BEGIN, I WANT TO CHECK IN WITH MR. KORACH. ANY OTHER INFORMATION ABOUT THE FEES? BECAUSE I KNOW YOU WERE DOING MORE RESEARCH.

IT'S OKAY IF YOU DON'T HAVE IT.

BUT I WONDERED IF YOU DID.

I WAS ABLE TO FIND SOME ADDITIONAL INFORMATION.

THANK YOU FOR CHECKING.

AND BEFORE I DO, I CAN GO TO THE APPROPRIATE SLIDE.

[03:05:02]

FOR THE CITY PLANNER DETERMINATION STAFF ANTICIPATE TWO OF THOSE INSTANCES OR FEE OCCURRENCES THAT WOULD GENERATE $2,094 FOR THE RERECORDING OR CANCELLATION OF AN INSTRUMENT ON REAL PROPERTY.

TEN INSTANCES TOTALING $2,228 FOR THE SOLAR APP STAFF ANTICIPATE 1400 INSTANCES TOTALING $256,200.

THE FEE AMOUNTS WITHIN THE THREE THAT I JUST TALKED ABOUT ARE ALL PRETTY SIMILAR.

IT'S THAT UPTICK IN VOLUME IN TERMS OF WHAT WE WOULD ANTICIPATE FOR SOLAR APP SUBMISSIONS, FOR THE APPEAL OF A BUILDING OFFICIAL DECISION, WE ANTICIPATE THREE OCCURRENCES TOTALING $2,700 THE RIGHT OF WAY PERMITS FOR TELECOMMUNICATIONS, 40 INSTANCES TOTALING $13,760.

AND. FINALLY, WE HAVE A CITY PROCESSING FEE.

WHICH IS INCLUDED IN ONE OF THESE 80 INSTANCES, TOTALING 10,240.

SO TOTAL REVENUE, WE WOULD ANTICIPATE ROUGHLY AROUND $300,000 ON AN ANNUAL BASIS, WITH THE VAST MAJORITY BEING DRIVEN BY SOLAR APPS DUE TO THE SHEER VOLUME THAT WE WOULD ANTICIPATE.

OKAY, GREAT. THANK YOU FOR ALL THAT INFORMATION, THAT'S REALLY HELPFUL.

I WAS I DIDN'T THINK IT WOULD BE THAT MUCH EVEN, SO THANKS FOR THAT.

I'LL MOVE ALONG TO MY COMMENTS.

THANK YOU VERY MUCH FOR THE PRESENTATION AND TO ALL WHO WORKED ON THIS, EVERY DEPARTMENT, EVERY PIECE OF THE CITY CONTRIBUTED.

I KNOW, AND EVERYBODY IS GOING TO EXPERIENCE SOME SOME CHANGE IN ADJUSTMENT BECAUSE WE NEED A BALANCED BUDGET.

AND WE'RE GRATEFUL TO THE CITY MANAGER AND THE CITY FOR UNDERSTANDING THAT WE ARE ALL GOING TO HAVE TO MAKE SOME, SOME HARD DECISIONS.

IT'S ALWAYS HARD TO MAKE CUTS, BUT AT THE SAME TIME, NOBODY WANTS TO PAY MORE FOR THE SERVICES THAT WE EXPECT.

AND THE PRICES GO UP EVERY YEAR.

SO WE HAVE TO STAY FISCALLY DISCIPLINED.

AND I THINK THAT OUR TEAM, THIS STAFF AND THE TWO PEOPLE SITTING RIGHT HERE ARE HAVE DONE AN INCREDIBLE JOB AT BEING VERY FISCALLY DISCIPLINED AND TAKING A CONSERVATIVE APPROACH ON EXPENSES AND REVENUES, REALLY PREPARING FOR RISK.

WE LOOKED AT THAT TRANSFER FOR THE WORKER'S COMP.

YOU KNOW, MAYBE MAYBE IT'S A LITTLE MORE, I HOPE, THAN WE NEED, YOU KNOW, MAYBE IT'S A LITTLE CUSHION.

BUT WE HAVE TO THINK ABOUT OUR FUTURE AND BE PROACTIVE TOGETHER.

I DO THINK WE ALSO NEED TO BRING THE COMMUNITY ALONG AND I KNOW THAT WE'VE GOT THE BUDGET WORKSHOP THIS THURSDAY FOR THE COMMUNITY, BUT REALLY JUST SOLICITING INPUT FROM THE COMMUNITY AS MUCH AS WE CAN.

IT'S HARD TO GET PEOPLE TO WEIGH IN ON SUCH A BIG TOPIC, BECAUSE THERE'S SO MANY PIECES AND PEOPLE DON'T ALWAYS UNDERSTAND IT.

BUT I THINK WHATEVER WE CAN DO TO ENGAGE THE COMMUNITY IN THE BUDGET PROCESS, WE NEED TO CONTINUE TO DO.

I KNOW WE'RE DOING THAT. I KNOW THE CITY MANAGER HAS HIS NEWSLETTER, AND WE'VE GOT ALL THESE DIFFERENT CHANNELS OF COMMUNICATION, SOCIAL MEDIA AND WHATNOT, AND I THINK WE NEED TO CONTINUE TO DO THAT TO BRING PEOPLE IN, BECAUSE THERE'S A LOT OF MISUNDERSTANDING AND, AND FOLKS THAT WANT SOMETHING FOR THEIR SPECIFIC AREA.

AND I CAN TELL YOU, SINCE WE HAVE DISTRICTS THAT I HEAR IT ALL THE TIME IN MY DISTRICT, DISTRICT FOUR DOES NOT GET ENOUGH.

WE DO NOT HAVE EQUITABLE DISTRIBUTION OF PROJECTS AND RESOURCES.

AND WHEN WE HEAR THINGS LIKE IT'S THE NEWEST PART OF THE DISTRICT, WE'RE LIKE, EVERY HOUSE IN MY WHOLE AREA IS 50 YEARS OLD, EVERY HOUSE IS, YOU KNOW, AND AND LA COSTA WASN'T EVEN PART OF THE CITY UNTIL 1972.

SO WE'RE MISSING ALL KINDS OF INFRASTRUCTURE, INCLUDING SIDEWALKS.

SO THERE'S THERE ARE AREAS THAT ARE BRAND NEW AND BEAUTIFUL AND HAVE ALL THE PIECES, BUT NOT EVERY PIECE WITHIN DISTRICT FOUR HAS THAT.

SO THERE'S STILL A LOT OF VOICES OF CONCERN.

THERE WAS A NINE YEAR GAP BETWEEN THE LAST COUNCIL PERSON FROM SOUTH CARLSBAD DISTRICT FOUR UNTIL I WAS ELECTED.

SO WITH THAT NINE YEAR GAP, A LOT OF PEOPLE FELT DISENGAGED WITH THE CITY, AND A LOT OF PEOPLE FEEL LIKE IT'S CLOSER TO GO TO MOONLIGHT, CLOSER TO GO TO ENCINITAS, DOWNTOWN ENCINITAS THAN IT IS.

IT'S THREE MILES FROM MY HOUSE TO MOONLIGHT BEACH VERSUS TEN MILES TO GO TO CARLSBAD VILLAGE.

SO PEOPLE HANG OUT, YOU KNOW, AND PAY AND SPEND MONEY THERE.

SO WE'RE TRYING TO BRING THEM IN, BRING THEM IN AND MAKE THEM FEEL LIKE THEY ARE A PART OF THIS COMMUNITY, PART OF CARLSBAD.

SPEND OUR MONEY HERE.

SO AS FOR CUTS VERSUS RAISING REVENUE, YOU KNOW, I DO BELIEVE WE'RE GOING TO HAVE TO DO BOTH.

BUT THIS COUNCIL OVER THE PAST COUPLE OF YEARS HAS LOOKED AT RAISING REVENUE AND KEEP SAYING, WELL, WHAT CAN WE DO MORE TO TRIM THE FAT? WHAT CAN WE DO MORE TO MAKE CUTS VERSUS RAISING REVENUE? AND WE LOOKED AT THAT TOT MOST RECENTLY.

THAT WAS THE MOST SERIOUS CONVERSATION THAT WE HAD ABOUT RAISING REVENUE.

[03:10:02]

WE TALKED ABOUT CANNABIS, WE TALKED ABOUT OTHER THINGS, BUT MORE MOST RECENTLY WE TALKED ABOUT TOT AND EVERYBODY, YOU KNOW, ALL THE HOTELS SHOWED UP AND, AND THE BUSINESS COMMUNITY SHOWED UP AND SAID, PLEASE DON'T DO IT.

AND WE THOUGHT, OKAY, MAYBE IT WOULD HAVE A RIPPLE EFFECT IN OUR LOCAL ECONOMY, AND MAYBE THAT'S NOT IT.

WE'RE GOING. SOMETHING SOMEBODY IS GOING TO HAVE TO GIVE A LITTLE BIT, BECAUSE WE CANNOT NOT CUT AND NOT RAISE REVENUE.

WE'RE GOING TO HAVE TO MAKE HARD DECISIONS.

SO I THINK WITH THIS ONE, WE'VE WE'VE KIND OF GOTTEN AWAY WITH NOT TOO MANY CUTS.

I WON'T SAY THAT IT'S FAT BECAUSE IT'S NOT TRIMMING THE FAT.

IT'S YOU KNOW, THESE WILL HURT.

THESE THIS IS TRIMMING IN A WAY THAT THAT PEOPLE MIGHT YOU KNOW, EXPERIENCE SOME CHANGE.

AND I'M SORRY, I DO.

I DO THINK THAT THIS IS A GOOD PLAN.

I THINK THAT WE ARE GOING TO HAVE TO CONTINUE TO MAKE HARDER AND HARDER DECISIONS OVER THE NEXT FEW YEARS BECAUSE OF THE DECLINING REVENUES THAT WE HAVE AND THE INCREASING EXPENSES. SO I THINK THIS IS A GOOD START.

I THINK YOU ALL DID A WONDERFUL JOB WITH THIS ONE.

AND ALTHOUGH NOT EVERYONE'S GOING TO BE HAPPY SO FAR, IT LOOKS GREAT AND I WOULD LIKE TO KEEP HEARING FROM THE COMMUNITY AS WE WE GO TO A FINAL VOTE. AND I LOOK FORWARD TO HEARING HOW THE COMMUNITY WORKSHOP GOES TO.

THANK YOU.

MS. BURKHOLDER.

THANK YOU. I WISH THIS MEETING HAD TAKEN PLACE AFTER THE COMMUNITY WORKSHOP, ACTUALLY, BUT I DO APPRECIATE THAT WE'RE HAVING THAT ON THURSDAY.

IT'S VERY, VERY NICE FOR THE COMMUNITY TO BE ABLE TO COMMENT.

AND I COMMEND THE CITY MANAGER FOR HAVING TO MAKE THOSE TOUGH DECISIONS.

AND I MEAN, IT'S IT'S NO, IT'S NO FUN TO DO THAT, THAT TYPE OF JOB AND HAVE TO MAKE THOSE DECISIONS.

IT WE'RE TALKING ABOUT NEEDING REVENUE SOURCES, AND WE'RE TALKING ABOUT NEEDING MONEY TO HAVE THE SAME LEVEL OF SERVICE THAT WE HAVE RIGHT NOW.

AND WE'RE ALSO TALKING ABOUT NOT HAVING A CHIEF INNOVATION OFFICER WHO HAS ONE OF HIS PRIMARY GOALS AS MAKING SURE THAT'S THERE'S REVENUES BEING DEVELOPED HERE.

SO IT'S VERY HARD FOR ME TO WRAP MY HEAD AROUND THAT.

I SUPPORT EVERY OTHER PART OF THE BUDGET THAT YOU'VE PRESENTED, AND I'M REALLY GLAD THAT WE'RE NOT SEEING THE RED LINES LIKE WE WERE IN LAST YEAR'S BUDGET.

SO I LOOK FORWARD TO WHAT THE.

PUBLIC FEEDBACK IS AFTER THE WORKSHOP AND AND MAKING ANY LITTLE TWEAKS THAT WE NEED TO MAKE.

THANK YOU. MISS LUNA.

WELL, JUST A COUPLE EDITORIAL COMMENTS WHEN I FIRST CAME HERE.

THE FEES THAT COUNCIL MEMBER ACOSTA YOU WERE LOOKING AT, THOSE WERE STANDARD BUSINESS OPERATING FEES THAT MOST JURISDICTIONS CHARGE.

AND I WAS VERY IMPRESSED THAT THE CITY OF CARLSBAD DIDN'T PASS THOSE ON TO OUR RESIDENTS FOR A NUMBER OF YEARS AND THAT THEY WERE ABLE TO BENEFIT FROM MANY APPLICATIONS BEING FILED.

AND WE NEVER WE NEVER CHARGED THEM.

SO I THINK THIS IS COMING INTO ALIGNMENT WITH PROBABLY MOST OF OUR SURROUNDING JURISDICTIONS.

AND ONCE AGAIN, I MEAN, COUNCIL, YOU CAN CORRECT ME IF I'M WRONG, BUT THOSE ARE JUST OPERATIONAL FEES, COST RECOVERY.

WE CAN'T MAKE A PROFIT OFF OF THOSE.

SO ADDITIONALLY, I HAVE BEEN THROUGH FORTUNATELY, THE CITY HAS NOT EXPERIENCED IT THROUGH HORRENDOUS, HORRENDOUS LAYOFFS.

AND THE MAIN FACTOR, AS I THINK MR. KORACH WAS BEING VERY VERY HONEST WITH US WAS THAT OUR UNFUNDED ACTUAL ACTUARIAL PAYMENT TO CALPERS, YOU HAVE ONE YEAR WHERE CALPERS DOES NOT INVEST PROPERLY AND YOUR WHOLE BUDGET IS THROWN TOTALLY OUT OF WHACK, AND WE HAVE ENOUGH RESERVES.

SO I'M CAUTIOUSLY OPTIMISTIC WHERE HE HAS STRUCTURED IT IN LAURA.

AND I KNOW I'M PROBABLY GETTING IN THE WEEDS A LITTLE MUCH, BUT THEY HAVE BASICALLY PUT A MOAT AND A DRAWBRIDGE AROUND US.

AND SO EVEN THOUGH CALPERS MIGHT BE ABLE TO TO GET OVER THE MOAT, THEY CAN'T GET INTO THE DRAWBRIDGE.

SO OUR CASTLE IS STILL PROTECTED.

SO YOU'VE PIVOTED OVER THE LAST FEW YEARS TO SETTING UP THIS SORT OF BUDGET AND I THINK THE CITY MANAGER, WE CHALLENGED HIM WHEN OUR CHAMBER WAS FULL OF OF OUR BUSINESS FOLKS FOR SALES TAX AND TOT.

I THINK WE TOOK A BEAT AND WE SAID, OKAY, FIRST LET'S TAKE A LOOK AT OUR OWN HOUSE.

THE MAYOR CHALLENGED OUR CITY MANAGER.

HE'S COME BACK, I THINK, WITH SOMETHING VERY REASONABLE.

AND AND THAT'S NOT TO SAY THAT I THINK THE MESSAGE I HEARD WHEN OUR FOLKS WITH RESPECT TO TOT WERE HERE WAS

[03:15:01]

WE NEED TO TAKE A LOOK AT IT.

SO THEY'RE THEY'RE PREPARED, I THINK IN WHATEVER ACTION WE WANT TO TAKE TO SIT DOWN AND TALK TO THEM ON THE REVENUE SIDE.

SO UNLESS ANYBODY ELSE HAS ANY COMMENTS, I'D MOVE STAFF RECOMMENDATION ON ADOPTING THE RESOLUTION.

SECOND, THAT WAS THE REVOLUTION.

OKAY. IT'S TO ADOPT THE RESOLUTIONS.

WE HAVE SIX RESOLUTIONS.

THOSE ARE TO SET PUBLIC HEARINGS FOR THE ADOPTION.

YOUR MOTION WAS ON ALL SIX.

CORRECT ON THE RECOMMENDED ACTIONS.

WE HAVE A SECOND. WAS THAT FROM YOU, MISS BURKHOLDER? YES. OKAY. DID ANYBODY HAVE ANY MORE COMMENTS? OKAY. PLEASE VOTE.

PASSES UNANIMOUSLY.

THANK YOU. THAT'S A LOT OF WORK.

THANK YOU. HOLD ON.

I STILL HAVE TO ASK SOMETHING.

I WAS ALLOWING THE RESOLUTION TO RESOLUTIONS TO PASS.

MY. MY QUESTION THAT I HAD AROUND WHAT WOULD BE THE BEST WAY FOR US TO MAKE SURE WE'RE SEEKING FEEDBACK WITH REGARDS TO.

I GET THAT THERE'S THE COMMUNITY WORKSHOP, BUT SPECIFICALLY FOR THE ECONOMIC DEVELOPMENT PIECE THAT I WAS TALKING ABOUT.

I'M JUST SEEING MISS DAVIS HERE INTO THE LATE NIGHT, AND SHE OBVIOUSLY JUST HEARD ABOUT, AS WE ALL DID.

SO I'M JUST TRYING TO UNDERSTAND WHAT WOULD BE THE BEST METHOD TO GET THAT FEEDBACK.

CITY MANAGER I DON'T KNOW IF IF YOU ALL WOULD WANT TO JUST REACH OUT TO THEM OR JUST CHAT WITH THEM, I DON'T KNOW, I'M JUST THAT'S SOMETHING THAT WHAT WE CAN DO BETWEEN NOW AND JUNE 18TH, WE'LL GO AHEAD AND WE'LL SIT DOWN WITH CVA, THE VISIT CARLSBAD AS WELL AS OUR CHAMBER TO EXPLAIN THE CHANGES.

OKAY. ALL RIGHT.

THANK YOU.

THAT BRINGS US TO THE CONCLUSION OF OUR COUNCIL MEETING.

[COUNCIL COMMENTARY AND REQUESTS FOR CONSIDERATION OF MATTERS]

WE WERE SOME OF US WERE IN WASHINGTON DC, THE 16TH AND THE 17TH TAKING MEETINGS I DID HAVE A MEETING WITH I WON'T BOTHER YOU WITH ALL OF THE NAMES OF THE PEOPLE BECAUSE YOU PROBABLY DON'T KNOW THEM.

THE FEDERAL RAIL ASSOCIATION, REGARDING TRENCHING IN THE VILLAGE AND HOUSING AND URBAN DEVELOPMENT REGARDING SOLELY WINDSOR POINT AND A MEETING WITH A REPRESENTATIVE OF REPRESENTATIVE ISSUES OFFICE ISSUES OFFICE RELATIVE TO THE AIRPORT COMMUNITY MEETING REQUESTING A LETTER OF SUPPORT.

IN THE INTERIM, BASICALLY, WHAT WE WERE DOING WHILE WE WERE TAKING THESE MEETINGS IS ASKING FOR FINANCIAL SUPPORT FOR OUR DIFFERENT PROJECTS AND EXPLAINING WHAT THE LEGISLATIVE SUBCOMMITTEE IS AND HOW WE PRIORITIZE OUR PROJECTS HERE IN CARLSBAD.

ALSO TODAY WE HAD A LEGISLATIVE SUBCOMMITTEE MEETING AND TOOK POSITIONS ON VERY MANY BILLS.

AND ON FRIDAY IS A SANDAG MEETING, 9:00 401 B STREET.

THANKS, MISS ACOSTA.

THANK YOU. I WAS FOCUSED ON THE TWO BIG ONES.

I ALSO ATTENDED THE LEGISLATIVE ADVOCACY TRIP TO WASHINGTON, DC, BUT BECAUSE OF THE WAY THAT WE BOTH SIT ON THE LEGISLATIVE SUBCOMMITTEE, WE COULDN'T BE IN THE SAME MEETINGS. SO WE SEPARATED AND WENT TO DIFFERENT MEETINGS, AND SPOKE ON OUR LEGISLATIVE PLATFORM AND ASKED FOR FUNDING ACCORDING TO WHAT THE LEGISLATIVE SUBCOMMITTEE HAS BEEN WORKING ON.

WE DID HAVE THAT LEGISLATIVE SUBCOMMITTEE THIS AFTERNOON.

IT WAS A SPECIAL DATE AND TIME THAT WE HAD SET.

IT WAS TODAY AT 1:00.

AND SO YOU CAN LOOK AT THE VIDEO IF YOU'RE INTERESTED IN HEARING WHAT POSITIONS WE TOOK.

WE TOOK A LOT OF POSITION, SUPPORT AND OPPOSE ON ALL DIFFERENT KINDS OF BILLS.

THIS IS THE TIME OF THE STATE LEGISLATIVE PROCESS WHERE THINGS ARE MOVING VERY QUICKLY.

AND I THINK IT'S REALLY IMPORTANT THAT WE STAY NIMBLE AND ON TOP OF ALL OF THE BILLS.

SO WE WERE DOING THAT EARLIER TODAY.

AND THE OTHER BIG THING IS THE SAN DIEGO COUNTY WATER AUTHORITY MEETING ON THURSDAY.

IT'S A REALLY BIG MEETING.

WE WILL BE DISCUSSING WATER RATES AND WATER INFRASTRUCTURE FOR THE REGION.

IT'S GOING TO BE A HARD DISCUSSION, HARDER EVEN THAN TODAY'S BUDGET CONVERSATION.

SO THAT'S THURSDAY ALL DAY AND PEOPLE ARE WELCOME TO TUNE IN ON THE WEBSITE.

THANKS. MS. BHAT-PATEL. YES. THANK YOU.

SIMILARLY, I WAS ALSO IN WASHINGTON, D.C.

FOR THOSE MEETINGS THAT WE HAD.

WE YOU KNOW, WE CHATTED ABOUT THE AIRPORT, TRANSPORTATION, HOUSING, DIFFERENT FEDERAL FUNDING OPPORTUNITIES, AND IT'S MAINLY BEEN COVERED WHO WE MET WITH.

SO I WON'T GO OVER THAT AGAIN.

THE THIS WEEKEND I HAD THE PLEASURE OF GOING TO THE PEACE OFFICERS MEMORIAL RUN LAST WEEK.

WAS POLICE OFFICER OR NATIONAL POLICE OFFICERS WEEK.

AND SO IT WAS REALLY GREAT TO END THE WEEK WITH THAT MEMORIAL RUN AND PARTICIPATE IN IT ALONGSIDE OUR OFFICERS.

I KNOW COUNCILMEMBER BURKHOLDER WAS THERE AS WELL.

AND THEN WE HAD I HAD THE CARLSBAD EDUCATION FOUNDATION EVENT.

AND THEN YESTERDAY I SPOKE TO OUR HIGH NOON ROTARY, AND TODAY WE HAD OUR ECONOMIC DEVELOPMENT SUBCOMMITTEE MEETING AS WELL.

[03:20:04]

AND I KNOW SINCE WE DON'T HAVE IT'S MEMORIAL DAY ON MONDAY.

SO I DON'T WE'RE NOT GOING TO HAVE OUR COUNCIL MEETING.

SO JUST AS A HEADS UP, I WILL HAVE CLEAN ENERGY ALLIANCE NEXT THURSDAY AND THEN A NCTD BOARD MEETING ALL DAY.

IT'S A RETREAT ALL DAY, THE 31ST.

SO WITH THAT, THANK YOU SO MUCH.

CITY MANAGER. I JUST WANT TO TAKE A FEW MINUTES AND JUST THANK OUR INCREDIBLE LEADERSHIP TEAM.

[CITY MANAGER COMMENTS]

AND THESE ARE ALL THE FOLKS THAT HANDLE THIS ORGANIZATION AND THE BUDGETS ONE OF THE MOST DIFFICULT TIMES OF THE YEAR BECAUSE NOT ONLY ARE THEY WORKING ON THEIR DAY TO DAY OPPORTUNITIES, BUT IN DAY TO DAY, WHEN I SAY OPPORTUNITIES, IT'S THE JOB.

BUT ALSO THEY'RE RESPONDING TO ANY OF THE QUESTIONS THAT WE HAVE AND ASK OF THEM AS WE'RE TRYING TO COBBLE TOGETHER THE BUDGET.

SO IT'S AN INCREDIBLY LABOR INTENSIVE EFFECT.

IT STARTS IN BASICALLY DECEMBER, AND THEN IT'LL CULMINATE HOPEFULLY ON ON JUNE 18TH.

SO I JUST WANT TO SPECIFICALLY THANK EACH AND EVERY ONE OF YOU.

AND THEN I ALSO WANT TO PROVIDE SOME SPECIAL RECOGNITION TO OUR CHIEF INNOVATION OFFICER, DAVID GRAHAM, BECAUSE THIS HAS BEEN SOMETHING THAT I THINK HAS BEEN FAIRLY DIFFICULT.

IT'S BEEN DIFFICULT FOR ME AS A PROFESSIONAL, AND I JUST REALLY APPRECIATE THE GRACE IN WHICH MR. GRAHAM'S BEEN HANDLING THIS.

NO ONE LIKES TO HEAR READ ABOUT THEIR POSITION BEING ELIMINATED.

AND THE SAME GOES THROUGH FOR OUR DIVERSITY OUR DEI INDIVIDUAL, NANCY, BECAUSE IT IS A CHALLENGE.

SO WITH THAT SAID, I JUST REALLY WANT TO THANK COUNCIL AND THANK ALL OF OUR STAFF FOR YOUR INCREDIBLE EFFORTS.

CITY ATTORNEY. NOTHING, THANK YOU.

CITY CLERK. NOTHING, THANK YOU, THANK YOU.

WE'RE ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.