Feb 11, 2025 City Council Meeting

TONIGHT'S MEETING TO ORDER, PLEASE TAKE ROLL.

[00:00:11]

THE CITY COUNCIL WILL BE SERVING AS THE CARLSBAD MUNICIPAL WATER DISTRICT BOARD OF DIRECTORS ON CONSENT CALENDAR ITEM NUMBER 5.

AND THE CITY COUNCIL AND THE CARLSBAD MUNICIPAL WATER BOARD OF DIRECTORS ON DEPARTMENTAL AND CITY MANAGER'S REPORT, ITEM NUMBER EIGHT. NEXT IS THE PLEDGE. TAMMY, PLEASE [INAUDIBLE].

[PRESENTATIONS]

THANK YOU. AND I KNOW THAT WE'LL BE PRESENTING THIS TO MR. MICHAEL COLLINS OF OUR PARKS AND RECREATION SERVICES COORDINATOR.

BUT BEFORE THAT, I'D LIKE TO BE ABLE TO SAY A FEW THINGS AND THEN READ OUR PROCLAMATION.

SO BLACK HISTORY MONTH IS A TIME TO HONOR THE RESILIENCE, ACHIEVEMENTS, AND CONTRIBUTIONS OF BLACK AMERICANS, THOSE WHO HAVE SHAPED HISTORY AND CONTINUE TO LEAD THE WAY FORWARD.

AS KENDRICK LAMAR, WHO MADE HISTORY AS THE FIRST RAPPER TO PERFORM SOLO AT THE SUPER BOWL DURING BLACK HISTORY MONTH, REMINDS US RESPECT IS JUST THE MINIMUM.

THESE WORDS HIGHLIGHT THAT RECOGNIZING BLACK HISTORY ISN'T JUST ABOUT REFLECTION, IT'S ABOUT ACTION.

LET THIS MONTH INSPIRE US TO CELEBRATE, LEARN, AND KEEP PUSHING FOR EQUITY AND JUSTICE.

SO WITH THAT, I'LL READ OUR PROCLAMATION. WHEREAS THE CITY OF CARLSBAD JOINS AMERICANS THROUGHOUT THE COUNTRY AND RECOGNIZE IN FEBRUARY 2025 AS BLACK HISTORY MONTH, AND WHEREAS BLACK HISTORY MONTH RECOGNIZES AND PAYS TRIBUTE TO THE ACCOMPLISHMENTS THAT BLACK PEOPLE HAVE MADE TO OUR COMMUNITY AND ACKNOWLEDGES THE PAST AND PRESENT STRUGGLES FOR FREEDOM, EQUALITY AND EQUITY OF THE BLACK COMMUNITY AND WHEREAS THE 2025 NATIONAL THEME FOR THE OBSERVANCE OF BLACK HISTORY MONTH IS AFRICAN AMERICANS AND LABOR, TO RECOGNIZE THE VARIOUS AND PROFOUND WAYS THAT ALL TYPES OF WORK INTERSECT WITH THE COLLECTIVE EXPERIENCES OF BLACK PEOPLE.

AND WHEREAS THE CITY OF CARLSBAD CONTINUES TO STRIVE TO BE AN INCLUSIVE ENVIRONMENT IN WHICH ALL ARE RESPECTED AND RECOGNIZED FOR THEIR EFFORTS IN OUR COMMUNITY, THE STATE, THE COUNTRY, AND THE WORLD. AND WHEREAS, DURING BLACK HISTORY MONTH, WE REFLECT AS A NATION ON THE ACHIEVEMENTS OF THE BLACK COMMUNITY, FROM THE INJUSTICES OF SLAVERY TO THE INNOVATORS OF OUR TIME, WE REMEMBER THOSE WHO ARE STRONG AND COURAGEOUS AND WHO MAKE A DIFFERENCE.

WHILE REFLECTING ON THE PAST IS NECESSARY, WE MUST ALSO ENCOURAGE OUR YOUTH TO REALIZE THEIR POTENTIAL AND DREAM FOR A BRIGHTER FUTURE.

NOW, THEREFORE, I, MAYOR PRO TEM PRIYA BHAT-PATEL, ON BEHALF OF THE MAYOR AND CITY COUNCIL, HEREBY PROCLAIM FEBRUARY 2025 AS BLACK HISTORY MONTH AND PROUDLY HONORED THE HISTORY AND CONTRIBUTIONS OF THE BLACK COMMUNITY THROUGHOUT OUR STATE AND NATION.

AND WITH THAT, I'D LIKE TO INVITE MR. COLLINS TO THE PODIUM.

THANK YOU, CITY COUNCIL. THE HONORABLE MAYOR, CITY MANAGER AND TEAM CARLSBAD.

THIS TIME OF YEAR IS VERY SPECIAL AND VERY IMPORTANT TO AFRICAN AMERICANS AS WE CELEBRATE BLACK HISTORY MONTH.

THIS IS A TIME TO PAY TRIBUTE TO THOSE WHO PAVED THE WAY FOR US AND THE WAY FOR US TO FOLLOW.

MY EXPERIENCE IN HISTORY AS AN AFRICAN AMERICAN HASN'T ALWAYS BEEN PLEASANT.

I WAS BORN AND RAISED IN CHICAGO, AND I'M A CHILD OF THE CIVIL RIGHTS MOVEMENT.

AS A KID, TIMES WEREN'T ALWAYS JOYFUL. AROUND THE TIME I WAS TEN YEARS OLD, I BEGAN TO LEARN ABOUT MY HERITAGE AND THE CONTRIBUTIONS OF THE AFRICAN-AMERICANS THAT GAVE OUR COUNTRY AND THE REST OF THE WORLD AS A WHOLE.

I'M SO PROUD OF MY PEOPLE'S PAST, PRESENT, AND FUTURE ACCOMPLISHMENTS.

I REMEMBER WHEN THE COUNTRY FIRST STARTED CELEBRATING BLACK HISTORY MONTH.

IT BECAME OFFICIAL IN 1976, WHEN PRESIDENT GERALD FORD WANTED TO EXTEND RECOGNITION TO HONOR THE OFTEN NEGLECTED ACCOMPLISHMENTS OF BLACK AMERICANS. SCHOOLS AND COMMUNITY LEADERS BEGAN RECOGNIZING THIS IN THE WEEKS THAT FOLLOWED.

IT IS NOW CELEBRATED IN DIFFERENT COUNTRIES AROUND THE WORLD, INCLUDING GERMANY, CANADA, IRELAND, THE UNITED KINGDOM, AND MORE. IN CONCLUSION, THANK YOU, CITY OF CARLSBAD FOR SELECTING ME TO RECEIVE THIS BLACK HISTORY MONTH PROCLAMATION. I INVITE THE COUNCIL TO COME DOWN AND TAKE A PICTURE TOGETHER. SURE.

[INAUDIBLE].

[PUBLIC COMMENT]

[00:06:24]

THE BROWN ACT AND THE CITIES MEETING RULES ALLOWS 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 OF THIS AGENDA.

THE CITY COUNCIL RECEIVED NON-AGENDA PUBLIC COMMENT FOR A TOTAL OF 15 MINUTES AT THE BEGINNING OF THE MEETING.

COUNCIL RECEIVED ANY ADDITIONAL NON-AGENDA PUBLIC COMMENTS AT THE END OF THE MEETING IN CONFORMANCE WITH THE BROWN ACT.

NO ACTION MAY OCCUR ON NON-AGENDA ITEMS. WHEN MAKING YOUR COMMENTS, PLEASE TREAT OTHERS WITH COURTESY, CIVILITY AND RESPECT. WE WELCOME CLAPPING DURING THE CEREMONIAL PRESENTATIONS AT THE BEGINNING OF THE CITY COUNCIL MEETING.

HOWEVER, WE ASK THAT YOU REFRAIN FROM CLAPPING DURING THE BUSINESS SECTION OF THE MEETING, STARTING WITH THE NON-AGENDA PUBLIC COMMENT. THIS WILL HELP MAKE SURE THAT THE PEOPLE'S BUSINESS CAN BE CONDUCTED EFFICIENTLY, AND THAT THIS CHAMBER IS A PLACE WHERE ALL POINTS OF VIEW ARE WELCOMED AND RESPECTED.

THE CLERK WILL CALL YOUR NAME. PLEASE COME UP TO THE PODIUM.

YOU HAVE THREE MINUTES TO SPEAK AT THE 2.5 MINUTE MARK.

THE PODIUM WILL TURN YELLOW, GIVING YOU NOTICE THAT YOU HAVE 30S LEFT.

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

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

WILL YOU PLEASE CALL THE FIRST SPEAKER? MIKE BORRELLO, FOLLOWED BY GENE WALKER.

GOOD EVENING. MAYOR COUNCIL. SO DESPITE WHAT THE MEDIA HAS CALLED IT OR THEY DENY IT, AMERICA WITNESSED A HISTORIC LANDSLIDE ELECTION. THEY DISPARAGED THE WIND AS A POPULIST MOVEMENT.

PERHAPS, BUT THE MANY PEOPLE THAT ELECTED PRESIDENT TRUMP AGREE IT'S A MANDATE.

AND NOW A RECKONING. AS DOGE EXPOSED USA MONEY LAUNDERING OPERATIONS THAT HAVE STOLEN HUNDREDS OF BILLIONS OF DOLLARS, IF NOT TRILLIONS OF TAXPAYER TAXPAYER MONEY. USAID IS JUST THE TIP OF THE ICEBERG.

THERE IS NO GOING BACK, NO MATTER WHAT JUDGES DO TO DELAY IT.

WE'LL GET TO THE TRUTH. IT HAD TO HAPPEN THIS WAY.

TRUMP ALLEGED LOSS IN 2020 PLUNGED AMERICA INTO A FOUR YEAR DYSTOPIC NIGHTMARE.

HIGH INFLATION AND ECONOMIC DESPAIR, VACCINE MANDATES, RELENTLESS BORDER INVASION, GROOMING OF OUR CHILDREN FOR TRANS SURGERIES AND BESIDES, MILLIONS PERMANENTLY DISABLED AN UNPRECEDENTED AND SUSTAINED LEVEL OF EXCESS DEATH.

SINCE THE CAMPAIGN TO GET JABBED OR LOSE YOUR JOB, THE SUFFERING AWAKENED AMERICA AND THE WILL OF THE PEOPLE SPOKE ON THAT NOVEMBER NIGHT.

IT WAS PRESIDENT TRUMP'S PROMISE TO RETURN POWER TO THE PEOPLE, AND WE TOOK IT AFTER SEEING HOW BAD THINGS COULD GET.

JUST TODAY, TORY HAS REVEALED A SECRET AGREEMENT WRITTEN AND SIGNED ONLY THREE DAYS AFTER THE ELECTION BETWEEN 22 BLUE STATES, DC AND SAN FRANCISCO. THE PLOT WAS ORGANIZED RESISTANCE TO PRESIDENT TRUMP'S ANTICIPATED ACTIONS TO END BIRTHRIGHT CITIZENSHIP DESPITE THE THE MANDATE FROM THE AMERICAN PEOPLE TO END THE BORDER CRISIS AND RETURN IMMIGRATION ENFORCEMENT TO THE UNITED STATES.

THESE POLITICIANS PRIORITY TOP PRIORITY WAS NOT GAS, GROCERIES, AND PUBLIC SAFETY OR ANY OTHER MATTER OF CONCERN TO THE CITIZEN,

[00:10:06]

I'M HERE TONIGHT TO ASK THE COUNCIL A CRUCIAL QUESTION WHAT DO YOU INTEND TO DO? WILL YOU ALIGN YOUR AGENDA WITH THE PEOPLE'S MANDATE? IS YOUR PLAN TO TRUMP PROOF CARLSBAD, OR TO FOLLOW IN THE FOOTSTEPS OF DOGE TO ELIMINATE WASTE, FRAUD AND ABUSE? SO ROUNDABOUTS, PAINTING THE STREETS GREEN, POSTING SIGNS THAT PEOPLE IGNORE AND REDUCING OUR CARBON FOOTPRINT IS CLEARLY WASTE. WHAT ARE YOU GOING TO DO TO BRING BACK PROSPEROUS PROSPERITY TO CARLSBAD.

AFTER THESE FOUR YEARS, PLEASE. THANK YOU.

HI. I SPOKE RECENTLY REGARDING THE APPOINTMENT PROCESS FOR NEW APPOINTMENTS TO THE PLANNING COMMISSION. SPECIFICALLY, THE NEED TO ENSURE APPOINTEES HAVE THE REQUISITE BACKGROUND AND EXPERTISE FOR THIS SPECIFIC COMMISSION, AND THE NEED TO APPOINT SOMEONE WHO HAS LIVED IN CARLSBAD FOR A SUBSTANTIAL PERIOD OF TIME.

COUNCIL MEMBER ACOSTA. AT A CITY COUNCIL MEETING ON MAY 11TH, 2021, YOU ADVOCATED FOR REQUIRING ALL COMMISSION APPOINTEES TO BE CARLSBAD RESIDENTS FOR AT LEAST 3 TO 5 YEARS PRIOR TO AN APPOINTMENT.

YOU STATED PUBLICLY THAT RESIDENCY REQUIREMENT SHOULD BE BASED ON HOW LONG A LONG A PERSON HAS BEEN REGISTERED TO VOTE IN CARLSBAD.

HERE YOUR APPOINTEE TO THE PLANNING COMMISSION REGISTERED TO VOTE IN CARLSBAD IN AUGUST OF 2023, A MERE 18 MONTHS PRIOR TO THE APPOINTMENT. IN 2018, THE CITY COUNCIL ADDED SECTION 2.15.500, SUBSECTION TWO TO THE MUNICIPAL CODE, WHICH TREATS THE PLANNING COMMISSION AND SEVERAL OTHER COMMISSIONS DIFFERENTLY WITH REGARD TO HOW AN APPOINTMENT IS MADE.

THIS SECTION OF THE MUNICIPAL CODE STATES, ALTHOUGH EACH MEMBER OF THE CITY COUNCIL ELECTED BY A DISTRICT, SHALL USE HIS OR HER BEST EFFORTS TO APPOINT INDIVIDUALS RESIDING IN THAT DISTRICT TO THESE COMMISSIONS, THOSE SPECIFIC COMMISSIONS IN THAT SECTION, MEMBERS OF THE CITY COUNCIL MAY APPOINT INDIVIDUALS NOT RESIDING IN THEIR DISTRICT IN THEIR DISCRETION, IN ORDER TO ENSURE THE MOST INTERESTED AND QUALIFIED INDIVIDUALS SERVE ON THOSE EMISSIONS.

THE MUNICIPAL CODE DOES NOT ALLOW FOR PLANNING COMMISSION APPOINTEES BASED ON EQUITABLE DISTRIBUTION OF THE SEATS, AS COUNCIL MEMBER ACOSTA STATED WAS HER INTENT.

IN FACT, THE CODE EXPECTS THE MAYOR TO MAKE TWO APPOINTMENTS WITHOUT REGARD FOR DISTRICT, WHICH IN PRACTICE ENSURES THAT ONE OR MORE DISTRICTS ARE GOING TO HAVE MORE APPOINTEES.

INSTEAD, THE CODE STATES, THE ONLY TIME AN APPOINTMENT CAN BE MADE OUTSIDE OF AN APPOINTING MEMBERS DISTRICT IS WHEN THAT APPOINTMENT APPOINTS THE MOST INTERESTED AND QUALIFIED CANDIDATE.

THERE WERE AT LEAST THREE WELL QUALIFIED APPLICANTS FROM THE FIRST DISTRICT, INCLUDING THE FORMER CHAIR OF THE PLANNING COMMISSION AND TWO OTHER APPLICANTS.

WITH A COMBINED 80 YEARS OF EXPERIENCE IN PLANNING AND LAND USE.

ANY OF THESE APPLICANTS WOULD HAVE BEEN SOMEONE WHO WOULD HAVE COULD HAVE BEEN APPOINTED UNDER THIS MUNICIPAL CODE SECTION.

AS NOTED LAST WEEK, COUNCILMEMBER ACOSTA'S APPOINTEE DOES NOT LIVE IN THE FOURTH DISTRICT.

HE HAS A HISTORY OF ABSENTEEISM AND VACATING HIS SEAT ON PREVIOUS COMMISSIONS, TO WHICH HE HAS BEEN APPOINTED AND DOES NOT HAVE ANY BACKGROUND ZERO EXPERTISE IN PLANNING ISSUES. THIS APPOINTEE DOES NOT MEET THE INTERESTED AND QUALIFIED REQUIREMENT BECAUSE THE APPOINTEE IS NOT QUALIFIED, AND THERE ARE NO MORE SPEAKERS.

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

[5. APPOINTMENT TO THE SAN DIEGO COUNTY WATER AUTHORITY BOARD OF DIRECTORS - Adoption of a Carlsbad Municipal Water District Board of Directors resolution appointing Carlsbad Municipal Water District General Manager Amanda Flesse to the San Diego Water Authority Board of Directors.]

WE'VE HAD A CITY COUNCIL MEMBER AND THE DIRECTOR OF THE DEPARTMENT.

WE'VE HAD TWO CITY COUNCIL MEMBERS, AND WE'VE HAD A CITY COUNCIL MEMBER AND A RESIDENT.

SO ALL DIFFERENT THINGS. BUT ALL OF THE CITY'S INTERESTS HAVE DEFINITELY BEEN WELL REPRESENTED AT THE WATER AUTHORITY.

[00:15:02]

SO TONIGHT VICKI OR AFTER SHE RETIRED, SHE CONTINUED TO REPRESENT THE CITY, ACTUALLY.

AND NOW SHE'S RESIGNED FROM THE WATER BOARD. SO TODAY WE'RE BEING ASKED TO APPOINT THE NEW UTILITIES DIRECTOR AND GENERAL MANAGER, AMANDA PLESSY, TO SERVE OUT THE REMAINING 18 MONTHS OF THE SIX YEAR APPOINTMENT.

I DON'T HAVE ANY CONCERN WITH AMANDA AS THIS ROLE, GIVEN HER BACKGROUND AND KNOWLEDGE ON WATER ISSUES.

I THINK SHE'LL DO GREAT. BUT WHEN THIS APPOINTMENT COMES UP AGAIN IN JUNE, I WOULD LIKE TO SUGGEST THAT WE EXTEND THE OPPORTUNITY TO OTHERS IN THE COMMUNITY WITH THE BACKGROUND IN WATER ISSUES TO SHARE THEIR INTEREST WITH THE CITY, SO THAT RESIDENTS WITH EXPERTISE MIGHT ALSO HAVE AN OPPORTUNITY TO SERVE IN THIS CAPACITY AND THAT'S THE ONLY REASON I WANTED TO PULL IT. THANK YOU.

ANY OTHER DISCUSSION FROM COUNCIL? DO WE HAVE ANY SPEAKERS? NO. OKAY. I'M LOOKING FOR A MOTION FOR ITEMS ONE THROUGH SIX.

[CONSENT CALENDAR]

[7. ORDINANCE NO. CS-486 - AMENDMENT TO CARLSBAD MUNICIPAL CODE CHAPTER 5.16 MASSAGE SERVICES - Adoption of Ordinance No. CS-486 amending Carlsbad Municipal Code Chapter 5.16 - Massage Services.]

IT'S MY UNDERSTANDING WE DON'T HAVE TO REREAD THAT. THAT'S CORRECT.

OKAY. MOTION. MOVE. ADOPTION OF THE ORDINANCE IN ITEM SEVEN.

SECOND. PLEASE VOTE.

THAT PASSES UNANIMOUSLY. ITEM NUMBER EIGHT. CITY MANAGER.

[8. 2025 COST OF SERVICE STUDIES FOR WATER AND WASTEWATER, SETTING A PUBLIC HEARING TO APPROVE RATE CHANGES, ISSUING A WRITTEN NOTICE OF THE PUBLIC HEARING AND ESTABLISHING PROCEDURES FOR OBJECTIONS TO PROPOSED FEES – 1) Adoption of a City Council resolution approving and filing the 2025 Wastewater Cost of Service Study, setting a public hearing for April 22, 2025, at 5 p.m., to approve increases to rates for wastewater services effective July 1, 2025, and directing the City Manager or designee to issue a written notice of the public hearing; and 2) Adoption of a City Council resolution establishing a procedure for customer and property owner objections to proposed property-related fees and charges for wastewater services; and 3) Adoption of a Carlsbad Municipal Water District Board of Directors resolution approving and filing the 2025 Potable and Recycled Water Cost of Service Study, setting a public hearing for April 22, 2025, at 5 p.m., to approve increases to rates for potable and recycled water services effective July 1, 2025, and directing the Executive Manager or designee to issue written notice of the public hearing; and 4) Adoption of a Carlsbad Municipal Water District Board of Directors resolution establishing a procedure for customer and property owner objections to proposed water-related fees and charges for water services.]

COST OF SERVICE STUDIES FOR WATER AND WASTEWATER.

SETTING A PUBLIC HEARING TO APPROVE RATE CHANGES. ISSUING A WRITTEN NOTICE OF THE PUBLIC HEARING AND ESTABLISHING PROCEDURES FOR OBJECTIONS TO TWO PROPOSED FEES AND FOR THE PRESENTATION. WE HAVE UTILITIES DIRECTOR AMANDA ALESSI AND SENIOR MANAGEMENT ANALYST SHOSHANA AGUILAR.

THANK YOU. GOOD EVENING, COUNCIL MEMBERS AND [INAUDIBLE] BOARD MEMBERS.

MY NAME IS AMANDA L. FLESSE. I'M THE UTILITIES DIRECTOR AND GENERAL MANAGER FOR CMWD.

I'M JOINED TODAY WITH OUR SENIOR MANAGEMENT ANALYST, MISS SHOSHANA AGUILAR, AND WE ARE HERE TO PRESENT THE COST OF STUDY SERVICES AND RATES FOR WATER, RECYCLED WATER AND WASTEWATER WATER THAT WE PROVIDE HERE TO OUR CUSTOMERS.

THANK YOU. TODAY WE HAVE FOUR TOTAL PROPOSED ACTIONS.

TWO OF THE PROPOSED ACTIONS ARE FOR THE CITY OF CARLSBAD TO ADOPT A RESOLUTION APPROVING THE WASTEWATER COST OF SERVICE STUDIES, AND SET A PUBLIC HEARING TO APPROVE THE PROPOSED RATES.

IN THE SECOND ACTION, WE ARE ALSO ASKING COUNCIL TO APPROVE A RESOLUTION THAT ESTABLISHES A NEW PROCEDURE TO SEND IN OBJECTIONS FOR OUR CUSTOMERS.

THIS IS A NEW PROP 218 PROCEDURE THAT WAS JUST ADOPTED AT THE BEGINNING OF THIS YEAR, AND WE ARE IMPLEMENTING IT HERE.

WE GO BACK ONE MORE. SIMILARLY, WE THE NEXT TWO ACTIONS ARE FOR CMWD AND THOSE ARE THE SAME ACTIONS AS THE PREVIOUS JUST FOR WATER AND RECYCLED WATER. THANK YOU.

TODAY'S PRESENTATION IS ABOUT THREE SEPARATE SYSTEMS WATER, WASTEWATER, AND RECYCLED WATER.

EACH OF THESE SYSTEMS PROVIDE A CRITICAL SERVICE TO OUR CUSTOMERS.

IT'S A 24 HOUR, SEVEN DAY A WEEK SERVICE. OUR RATE INCREASES ARE REQUIRED TO CONTINUE THESE SERVICE AT THE LEVEL OF SERVICE THAT WE PROVIDE.

THE WATER SYSTEM. AS WE KNOW, CMWD BUYS THEIR WATER FROM THE SAN DIEGO COUNTY WATER AUTHORITY.

WE THEN DELIVER DRINKING WATER AND ALL OF THE WATER THAT YOU USE TO OUR BUSINESSES AND HOMES.

THIS WATER MEETS EVERYDAY PUBLIC HEALTH STANDARDS AND YOU CAN REALLY JUST DRINK IT FROM THE TAP.

THE WASTEWATER SYSTEM TAKES ALL OF THE WATER THAT YOU USE IN YOUR HOME AND BUSINESSES, THEN CONVEYS THAT AND DELIVERS IT TO THE ENCINO WASTEWATER TREATMENT PLANT.

THEN THE WATER IS THEN TREATED AND IT'S EITHER DISPOSED OF, OR IT THEN MOVES TO OUR CARLSBAD WATER RECYCLING FACILITY.

THE CARLSBAD WATER RECYCLING FACILITY FURTHER TREATS THE WATER TO MEET RECYCLING WATER STANDARDS, AND THEN IN A SEPARATE DISTRIBUTION SYSTEM, IT DELIVERS IT TO OUR GOLF COURSES, TO OUR OPEN SPACES, PARKS, HOAS AND OTHER LANDSCAPE AREAS. THIS RECYCLED WATER SYSTEM IS PROVIDED TO BUSINESSES AND HOMES,

[00:20:03]

I'M GOING TO TURN IT OVER TO MISS AGUILAR, AND SHE WILL TAKE YOU STEP BY STEP OF THE PROPOSED RATES FOR EACH OF THESE SYSTEMS. THANK YOU, AMANDA. GOOD EVENING. WHAT YOU'RE SEEING HERE JUST TO JUMP RIGHT INTO IT.

WHAT THESE INCREASES WOULD LOOK LIKE FOR OUR FOR OUR MOST COMMON TYPE OF CUSTOMER ACCOUNT, WHICH IS SINGLE FAMILY RESIDENTIAL CUSTOMERS.

SO THE FIRST INCREASE, IF APPROVED, WOULD GO INTO EFFECT THIS JULY AND IT WOULD BE 17 MORE DOLLARS A MONTH FOR POTABLE WATER AND ABOUT $8 A MONTH FOR WASTEWATER.

OVER THE THREE YEARS OF THE INCREASE, AT THE END OF THE THREE YEARS, THE TOTAL INCREASE ON A CUSTOMER'S AVERAGE BILL PER MONTH WOULD BE $35.71 FOR POTABLE AND $26.04 FOR WASTEWATER. BUT I WOULD LIKE TO PROVIDE A LITTLE BIT MORE CONTEXT FOR THAT.

WHAT YOU'RE LOOKING AT HERE IS A COMPARISON OF OUR AVERAGE COSTS FOR SINGLE FAMILY RESIDENTIAL POTABLE BILLS COMPARED TO THE REST OF THE REGION.

WE RIGHT NOW ARE THE LOWEST IN THE ENTIRE COUNTY AT ON AVERAGE, $73.91 FOR POTABLE WATER.

AND WITH THE FIRST YEAR OF THE PROPOSED INCREASE, THAT BILL WOULD GO UP TO ABOUT $91 BELOW THE COUNTY AVERAGE.

AMAZINGLY, EVEN IN YEAR THREE OF OUR INCREASES, WE WILL BE BELOW THE 2025 COUNTY AVERAGE.

DURING THAT TIME. WHILE EACH OF THESE INCREASES ARE BEING IMPLEMENTED, OUR NEIGHBORING AGENCIES WILL ALSO BE UPDATING THEIR OWN COST OF SERVICE STUDIES AND LIKELY INCREASING THEIR RATES. THIS IS ALSO TRUE ON THE WASTEWATER SIDE.

RIGHT NOW WE ARE BELOW THE COUNTY AVERAGE FOR SINGLE FAMILY HOMES FOR WASTEWATER.

THE BILL IS $51.74. WITH THE FIRST PROPOSED INCREASE, IT WOULD STILL BE BELOW THE AVERAGE AT $59.85.

SO WHAT DO WE DO WITH ALL OF THAT MONEY THAT WE COLLECT EVERY YEAR? WE DELIVER 4.4 BILLION GALLONS OF DRINKING WATER TO CARLSBAD RESIDENTS, VISITORS AND BUSINESSES.

EVERY DAY. WE COLLECT 6 MILLION GALLONS OF WASTEWATER AND BRING IT SAFELY AND CLEANLY TO THE WASTEWATER TREATMENT PLANT.

WE MAINTAIN OVER $2 BILLION OF INFRASTRUCTURE, MOST OF IT UNDERGROUND AND OUT OF SIGHT.

THAT INCLUDES 830 MILES OF PIPELINE IN THREE SEPARATE SYSTEMS. SO I PROVIDED YOU A LITTLE BIT OF BACKGROUND TODAY, AND I HAVE TO GO INTO SOME DETAIL, SOME OF THE NEW LEGAL LANDSCAPE FOR THE RATE SETTING PROCESS. I'LL PROVIDE MORE INFORMATION ABOUT THE PROPOSED RATES FOR EACH OF OUR SERVICES AND EXPLAIN NEXT STEPS.

AT THIS POINT, I WANT TO TAKE A STEP BACK AND JUST SAY THANK YOU SO MUCH TO OUR CITY PARTNERS ACROSS THE CITY ATTORNEYS OFFICE, FINANCE, COMMUNICATION AND ENGAGEMENT, AND ECONOMIC DEVELOPMENT.

I WANT TO TAKE A STEP BACK AND HAVE THAT 30,000 FOOT VIEW.

WHERE HAVE WE BEEN? WHERE ARE WE NOW? AND WHERE ARE WE GOING? THE LAST TIME COUNCIL VOTED TO APPROVE RATE INCREASES FOR UTILITIES WAS IN JANUARY OF 2022.

YOU APPROVED THREE YEARS OF INCREASES AND THOSE HAVE BEEN IMPLEMENTED OVER THE PAST THREE YEARS.

SINCE THAT TIME, STAFF HAS ALSO ENGAGED IN EXPERT RATES CONSULTANT TO UPDATE OUR COST OF SERVICE STUDIES.

LAST MONTH, YOU HEARD FROM LEADERSHIP FROM THE SAN DIEGO COUNTY WATER AUTHORITY HERE IN FRONT OF THIS BODY.

PROVIDING AN UPDATE ON WHAT'S HAPPENING AT THE WATER AUTHORITY AND THEIR RATES.

ONE THING OF NOTE IS THAT IN FOR CALENDAR YEAR 2025, THE WATER AUTHORITY'S RATES WENT UP BY 14%.

SO THAT COST IS PASSED ON TO CARLSBAD TO BUY WATER.

SO WE TOOK THAT INFORMATION AND INCORPORATED THAT INTO OUR RATES THAT WE ARE PROPOSING NOW.

AND TONIGHT WE ARE ASKING YOU TO VOTE TO SET THE PUBLIC HEARING FOR RATE INCREASES.

IF YOU DO SO, THAT WILL TRIGGER A NOTIFICATION PERIOD AND AN OUTREACH CAMPAIGN.

WE WILL PRINT AND SEND MAILERS TO OUR 30,000 CUSTOMER ACCOUNTS IN COMPLIANCE WITH PROPOSITION 218, AND ALSO DO SOME TARGETED OUTREACH TO COMMERCIAL CUSTOMERS AND TO OUR HIGHEST USERS.

THE PUBLIC HEARING WOULD BE SCHEDULED FOR APRIL 22ND, 2025.

AND THEN IF THE RATES ARE PASSED, THEY WOULD GO INTO EFFECT JULY 1ST.

THE COST OF SERVICE STUDY IS GUIDED BY PROP 218 IN CALIFORNIA.

BUT WE ALSO FOLLOW NATIONAL STANDARDS WITH A MANUAL PUBLISHED BY THE AMERICAN WATER WORKS ASSOCIATION.

THOSE STANDARDS REQUIRE THAT WE DO A REVENUE ANALYSIS.

SO HOW MUCH REVENUE DO WE NEED TO MAINTAIN, OPERATE AND REHAB AND REPLACE OUR SYSTEM? WE LOOK AT WHAT WE THINK OUR WATER DEMAND WILL BE.

HOW MUCH WATER WILL WE SELL? WE TAKE THAT INFORMATION AND DO A COST OF SERVICE ANALYSIS AND RATE DESIGN TO MAKE SURE THAT OUR RATES CORRECTLY AND EQUITABLY ALLOCATE

[00:25:01]

WE THEN FOLLOW THE RATE ADOPTION PROCESS THAT I WILL GO OVER IN MORE DETAIL.

SO WE DO NEED TO COLLECT RATES TO ADEQUATELY FUND OUR OPERATIONS, MAINTENANCE AND CAPITAL INVESTMENTS.

AT THE SAME TIME, WE MAY NOT COLLECT MORE REVENUE THAN WHAT IS NEEDED TO PROVIDE SERVICES.

WE DO NOT MAKE A PROFIT ON OUR RATES. SO THE PROP 218 HEARING HAS A REQUIREMENT OF NOTIFICATION TO NOTIFICATION TO CUSTOMERS 45 DAYS BEFORE THE HEARING IN THE MAIL.

SO THAT'S THAT FLIER THAT WE WILL BE PRINTING.

IT IS INCLUDED AS EXHIBIT FIVE IN THE STAFF REPORT.

AND DURING THAT TIME, UP TO THE PUBLIC HEARING, MEMBERS OF THE PUBLIC CAN SUBMIT A WRITTEN PROTEST TO THE RATES.

IF LESS THAN 50% OF OUR CUSTOMERS SUBMIT PROTESTS, WE MAY HOLD THE PUBLIC HEARING WHERE YOU CAN CONSIDER APPROVING THE RATES.

THERE'S A LOT IN THIS SLIDE, SO I JUST WANT TO TAKE A STEP BACK AND EXPLAIN BIG PICTURE WHAT THIS IS.

SINCE OUR LAST PUBLIC HEARING IN 2022, THERE HAS BEEN A NEW CASE LAW AND NEW STATE LAW PASSED AND SIGNED BY THE GOVERNOR IN SACRAMENTO ABOUT HOW TO CONDUCT RATE INCREASES IN CALIFORNIA. AND SO THERE ARE THERE IS A PROTEST PROCEDURE AND A SLIGHTLY DIFFERENT OBJECTION PROCEDURE.

ALL OF THIS INFORMATION WILL BE PRINTED IN THE MAILER THAT WE'LL BE SENDING OUT.

SO HERE'S OUR MAILER, OUR TENTATIVE MAILER. AND IT COVERS OUR THREE DIFFERENT SYSTEMS. SO RATES FOR POTABLE WATER, RECYCLED WATER, AND WASTE WATER.

LET ME GO INTO A LITTLE BIT MORE DETAIL ABOUT WHY WE NEED THESE INCREASES.

THE CITY OF CARLSBAD IS 73 YEARS OLD, BUT THE EXPECTED LIFESPAN FOR WATER INFRASTRUCTURE IS ONLY 30 TO 50 YEARS.

SO WE ARE CONSTANTLY REHABBING AND REPLACING OUR INFRASTRUCTURE.

IDENTIFYING WHAT THE PRIORITIES ARE, WHAT THE YOU KNOW, THE GREATEST IMPACT AND LIKELIHOOD OF FAILURE IS IN OUR WATER AND WASTEWATER INFRASTRUCTURE. LIKE I SAID BELOW, ONE OF THE BIGGEST DRIVERS FOR OUR RATE INCREASES IS THE COST TO PURCHASE WATER FROM THE WATER AUTHORITY.

AND ON THE WASTEWATER SIDE, WE PAY ENCINA WASTEWATER AUTHORITY, OF WHICH WE ARE A MEMBER, FOR THEIR WASTEWATER TREATMENT AND ALSO THE REHAB THEY NEED AT THEIR OWN PLANT, THEIR OWN CIP COSTS.

I'M NOW GOING TO GO INTO A LITTLE BIT MORE DETAIL ABOUT OUR WATER RATES. WHAT THIS CHART SHOWS IS THE COST INCREASES PER ACRE FOOT FOR US TO PURCHASE WATER FROM THE FROM THE WATER AUTHORITY SINCE 2005. THAT COST HAS GONE UP BY 200%.

WHY? A COUPLE OF DIFFERENT REASONS. ONE SAN DIEGO COUNTY RESIDENTS HAVE DONE A REALLY GOOD JOB WITH CONSERVATION, WHICH MEANS THAT THE WATER AUTHORITY IS SELLING LESS WATER. THERE ARE ALSO LOCAL REUSE PROJECTS HAPPENING AROUND THE COUNTY.

PURE WATER OCEANSIDE. PURE WATER SAN DIEGO, FOR EXAMPLE.

THAT ALSO DECREASES THE DEMAND FOR WATER FROM THE WATER AUTHORITY.

THE WATER AUTHORITY IS LEFT WITH FIXED COSTS THAT THEY FOR WHICH THEY HAVE TO COLLECT REVENUE, SO THE COST PER ACRE FOOT GOES UP. WHAT ARE WE DOING ABOUT IT? ONE THING WE'RE DOING IS PROPOSING TO IMPLEMENT PASS THROUGH CHARGES, WHICH IS WHAT MOST WATER AGENCIES IN THE COUNTY ALREADY DO.

THAT'S WHERE THE CHARGES FOR THE WATER AUTHORITY WOULD BE BROKEN OUT FROM CARLSBAD'S OWN INTERNAL COSTS ON CUSTOMER BILLS.

THIS IMPROVES TRANSPARENCY, AND AS YOU CAN SEE FROM THE LOGOS ON THIS SLIDE, MOST OF OUR NEIGHBORS HERE ARE SOME OF OUR NEIGHBORS THAT ARE ALREADY DOING THIS ON THEIR BILLS. I PULLED THIS EXAMPLE BILL FROM HELIX WATER DISTRICT IN EL CAJON, JUST BECAUSE IT'S ONE OF THE EASIER ONES TO SEE.

AND YOU CAN SEE IN THE ORANGE BOX, THERE ARE TWO DIFFERENT PASS THRUS FOR SDCWA THE SAN DIEGO COUNTY WATER AUTHORITY.

THERE'S A PASS THROUGH BASED ON HOW MUCH WATER THE CUSTOMER USES.

THE VARIABLE PASS THROUGH AND THERE'S A FIXED PASS THROUGH, WHICH IS A FLAT FEE BASED ON THE METER SIZE.

WE ARE WORKING WITH OUR IT DEPARTMENT TO EVENTUALLY IMPLEMENT SOMETHING SIMILAR.

THERE ARE A COUPLE OTHER STRUCTURAL CHANGES TO OUR RATES THAT WE ARE PROPOSING RIGHT NOW FOR SINGLE FAMILY RESIDENTIAL CUSTOMERS.

THEY THERE ARE THREE DIFFERENT TIERS, SO THEY ARE CHARGED $1 FIGURE FOR THE FIRST TEN UNITS OF WATER, USED A DIFFERENT DOLLAR AMOUNT FOR 11 TO 18 UNITS, AND THEN A HIGHER AMOUNT FOR THE HIGHEST AMOUNT OF WATER USE.

WITH OUR UPDATE TO OUR COST OF SERVICE ANALYSIS, WE FOUND THAT WE CAN SHIFT TO JUST TWO TIERS, WHICH MAKES IT EASIER AND IS EASIER TO UNDERSTAND ON BILLS.

THE OTHER CHANGE IS DEVELOPING A UNIQUE RATE ON TOP OF REGULAR RATES FOR ACCOUNTS ON THE MCCLELLAN-PALOMAR AIRPORT.

THIS WOULD MAKE SURE THAT WE ARE COLLECTING REVENUE FOR COSTS TO MAINTAIN THE DISTRIBUTION SYSTEM THAT ARE JUST ON THE AIRPORT PROPERTY.

THIS TABLE SHOWS WHAT THE AVERAGE SINGLE FAMILY RESIDENTIAL CUSTOMER BILL WOULD BE FOR POTABLE WATER WITH THE CHANGES.

SO RIGHT NOW IT'S $73.91 ON AVERAGE PER MONTH AND IT WOULD GO UP TO 9110 IN JULY OF 2025 AND THEN WE WOULD ALSO HAVE RATE INCREASES JANUARY OF 2026 AND JANUARY OF 2027.

[00:30:04]

BRIEFLY, I WANT TO PROVIDE A COUPLE SLIDES WITH SOME INSIGHT INTO THE WASTEWATER RATES. THIS TABLE SHOWS THE WASTEWATER RATE PROPOSED FOR SINGLE FAMILY RESIDENTIAL.

ON THE WASTEWATER SIDE, WE DON'T CHARGE PER UNIT.

WE CHARGE A FLAT FEE BECAUSE INDUSTRY WIDE ACROSS THE COUNTRY IT IS VERY IMPRACTICAL, IF NOT IMPOSSIBLE, TO METER WASTEWATER FLOW. SO WE HAVE A FLAT FEE FOR SINGLE FAMILY RESIDENTIAL AND THEN FOR COMMERCIAL WE BILL BASED ON HOW MUCH WATER IS USED AND I PUT THIS PHOTO ON THE SLIDE AND I WANT TO BRIEFLY EXPLAIN IT JUST TO GIVE SOME KUDOS TO OUR TEAM.

THIS IS A CURRENT STAFF MEMBER BEING LOWERED INTO A SEWER ACCESS HOLE TO INSPECT THE SEWER SYSTEM AND MAKE SURE THAT THE WASTEWATER IS FLOWING WHERE IT NEEDS TO BE.

AND WE HAVE AN INCREDIBLY TALENTED, SKILLFUL AND HIGHLY CERTIFIED TEAM THAT DOES THIS WORK AND THIS IS WHERE THESE RATES REALLY GO TO INSPECTING OUR SEWER AND MAINTAINING QUALIFIED STAFF THAT IS ABLE TO WORK SAFELY.

AGAIN, LIKE I SAID, THE WASTEWATER INCREASE WILL STILL KEEP US BELOW THE COUNTY AVERAGE.

BRIEFLY, I WANT TO TOUCH ON RECYCLED WATER. OUR RECYCLED WATER RATES ARE ABOUT 25% LOWER THAN OUR POTABLE IRRIGATION RATES.

THIS KEEPS RECYCLED WATER ATTRACTIVE FOR OUR IRRIGATION CUSTOMERS AND AGAIN PROTECTS POTABLE WATER FOR POTABLE NEEDS.

PART OF THE REASON WE'VE BEEN ABLE TO MAINTAIN RELATIVELY AFFORDABLE RECYCLED RATES IS WITH AN AGGRESSIVE AND SUCCESSFUL GRANT STRATEGY.

RECYCLED WATER IS A LOCAL DROUGHT PROOF SUPPLY, AND THE RATE INCREASES ARE VERY MODEST FOR RECYCLED WATER JUST TO KEEP UP WITH INFLATION.

SINCE THE LAST TIME YOU VOTED ON RATES, WE BROUGHT BACK TO COUNCIL AND COUNCIL APPROVED A UTILITIES RESERVE POLICY.

THIS RESERVE POLICY GOVERNS HOW MUCH EMERGENCY SAVINGS WE SHOULD HAVE FOR UNFORESEEN CIRCUMSTANCES.

THE RESERVE POLICY CREATES A FLOOR SO A MINIMUM AMOUNT OF RESERVES AND A CEILING THE MAXIMUM RESERVES.

THIS CHART SHOWS OUR POTABLE RESERVES IN THE NUMBER OF DAYS OF CASH WE HAVE.

SO HOW MUCH CASH WE SPEND ON AVERAGE ON A DAY.

AND YOU KNOW HOW LONG WE COULD GO IF THERE WAS AN WAS AN UNFORESEEN CIRCUMSTANCE THAT INTERRUPTED OUR REVENUE.

YOU CAN SEE THAT WE IN FY 24, OUR RESERVES WERE ABOVE THE MAXIMUM, BUT WE HAVE A PLAN TO SPEND THAT DOWN, AND HAVING THOSE HIGHER RESERVES HELP TO SMOOTH OUR RATES AND KEPT US FROM HAVING TO PROPOSE EVEN HIGHER INCREASES.

THIS IS THE STATUS OF OUR RESERVES FOR WASTEWATER. AGAIN, YOU HAVE THE MINIMUM THE MINIMUM RESERVES AND THE MAXIMUM RESERVES.

THOSE GOALS AND THE RESERVE POLICY. I ALSO WANT TO TOUCH ON THE HIGHER COLUMN IN THE OUT YEAR IN 2031.

RIGHT NOW OUR STAFF IS UPDATING OUR WASTEWATER MASTER PLAN.

WE ANTICIPATE THAT THAT WILL IDENTIFY NEW CIP PROJECTS THAT ARE NEEDED.

AND SO YOU KNOW, WHEN WE COME BACK WITH THE NEXT RATE INCREASE IN A FEW YEARS, WE WILL HAVE A PLAN TO SPEND DOWN THAT RESERVE SO THAT PROJECTION WILL NOT BE AS HIGH ABOVE THE MAXIMUM RESERVES AS IT LOOKS LIKE RIGHT NOW. SO THE SAME IS TRUE FOR RECYCLED WATER WITH THE RESERVES.

ONE ADDITIONAL CAVEAT FOR RECYCLED WATER. WE HAVE SOME VERY LOW INTEREST DEBT WITH THE STATE, AND PART OF THAT DEBT AGREEMENT REQUIRES US TO KEEP A CERTAIN AMOUNT OF RESERVES FOR OUR DEBT SERVICE OR FOR OUR COVERAGE.

WE'VE PARTNERED WITH COMMUNICATION AND ENGAGEMENT AND ECONOMIC DEVELOPMENT FOR AN OUTREACH CAMPAIGN THAT INCLUDES THE MAILER TO 30,000 CUSTOMER ACCOUNTS, A WEBINAR TARGETED FOR OUR COMMERCIAL CUSTOMERS, FLIERS AT CITY FACILITIES, A DEDICATED WEB PAGE, AND A SOCIAL MEDIA CAMPAIGN. DIRECT OUTREACH TO OUR LARGEST CUSTOMERS AND PUBLIC NOTICE BEFORE THE PUBLIC HEARING IN PARTNERSHIP WITH THE CITY CLERK'S OFFICE.

AND I WANT TO PASS IT BACK TO OUR GENERAL MANAGER AND UTILITIES DIRECTOR, AMANDA FLESSIE, TO BRING US HOME. I WANTED TO TAKE A MINUTE TO ADDRESS AN ITEM THAT'S NOT PART OF THE COST OF SERVICE STUDY, BUT IT'S DEFINITELY PART OF THE LEVEL OF SERVICE WE PROVIDE TO OUR CUSTOMERS.

CARLSBAD PRIDES ITSELF ON ITS LEVEL OF SERVICE AND ITS CUSTOMER SERVICE AND TIMELY RESPONSIVENESS TO THE CUSTOMERS AND ITS RESIDENTS.

THIS LEVEL OF SERVICE IS WHAT THE RESIDENTS AND CUSTOMERS HAVE GROWN ACCUSTOMED TO AND NOW EXPECT.

JUST TO LET YOU KNOW, WE SERVE OVER 100,000 PEOPLE DAILY WITH SAFE DRINKING WATER AND WASTEWATER SERVICES.

LAST YEAR IN 2024, CMWD RECEIVED OVER 1300 PHONE CALLS.

ALL OF THOSE PHONE CALLS WERE RESPONDED TO WITHIN 48 HOURS, AND THE MAJORITY OF THEM WERE RESPONDED TO WITHIN 12 HOURS.

THIS INCLUDES THE THREE OVER ALMOST 300 OFF DUTY.

[00:35:02]

THIS IS THE LEVEL OF SERVICE THAT IS NOT QUANTIFIABLE, AND IT DOES NOT SHOW UP IN ANY COST OF SERVICE STUDIES.

BUT I KNOW IT IS EXTREMELY IMPORTANT TO HIGHLIGHT THIS LEVEL OF SERVICE BECAUSE YOU DO NOT SEE IT ANYWHERE ELSE AND IT'S SPECIAL TO THE CARLSBAD CULTURE.

IN CONCLUSION, WE ARE ASKING THE COUNCIL TO APPROVE THESE TWO RESOLUTIONS AND ACCEPT THE COST OF SERVICE STUDIES.

SETTING THE RATE HEARING FOR THE APPROVED RATES FOR WASTEWATER SERVICES.

SIMILARLY, WE ARE ASKING CMWD BOARD TO APPROVE THESE TWO RESOLUTIONS OF ACCEPTING THE COST OF SERVICE STUDY.

SETTING THE RATE HEARING AND THE PROPOSED RATES FOR THE WATER AND RECYCLED WATER SERVICES.

SHOSHANA AND I ARE HERE FOR ANY QUESTIONS AND THAT'S THE CONCLUSION OF OUR PRESENTATION.

THANK YOU. DO WE HAVE SPEAKERS? YES, WE HAVE MIKE BORELLO AND THEN MAYOR, MR. MICHAEL DRENNAN SUBMITTED A SPEAKER SLIP. I SAW HIM SUBMIT IT ABOUT FIVE SECONDS TOO LATE.

SO I THINK THAT'S IT'S REASONABLE TO ALLOW THAT.

MIKE, GOOD EVENING AGAIN. SO THERE'S A LOT TO TALK ABOUT. WATER. WE COULD TALK ABOUT FRAUD, WASTE AND ABUSE, BUT I'M HERE TO TALK ABOUT A CRITICAL HEALTH CONCERN THAT I HAVE FOR OUR COMMUNITY. ANY COMMUNITY THAT USES THE PURPLE PIPE DISTRIBUTION SYSTEMS. SO IT'S A LARGE MARKET. NATIONAL MARKETS, LIKE 121.4 BILLION PER YEAR.

IN THE MUNICIPAL SEGMENT. BUT THAT INCLUDES ALL WATER TREATMENT, INCLUDING POTABLE AND WASTEWATER RECYCLED WASTEWATER TREATMENT SECONDARY TREATMENT OF WASTEWATER REDUCES BIOLOGICAL CONTENT AND AND SLUDGE, BUT RESIDUAL CONTAMINANTS REMAIN TYPICALLY UP TO 1000MG/L OF TOTAL DISSOLVED SOLIDS AND ABOUT 60MG/L IN NUTRIENTS INCLUDING AMMONIA, NITRATES, PHOSPHATES, AND OTHER SALTS. THE WATER IS NOT SAFE FOR CONSUMPTION.

STUDIES WARN TOXICOLOGICAL EFFECTS FROM SHORT TERM INGESTION.

OTHERS WARNED OF LONG TERM HARMS, INCLUDING ENDOCRINE DISRUPTION, REPRODUCTIVE AND DEVELOPMENTAL ISSUES.

STUDIES ADDRESSING INHALATION OF WASTEWATER AEROSOLS HAVE BEEN TOTALLY LACKING UNTIL 2022, WHEN ONE RESEARCHER IN PARTICULAR SPURRED HIS INTEREST TO LOOK AT HOW SARS-COV-2 WAS PASSING THROUGH THE SYSTEM.

THEY DID FIND IT IN THE AEROSOLS, BUT THEY ALSO FOUND OTHER PATHOGENS AT ALL AS WELL.

AND REALLY, THAT'S WHAT CONCERNS ME. OTHER STUDIES SUGGEST THAT PATHOGENS CAUSING GASTROENTERITIS, PNEUMONIA, URINARY TRACT INFECTIONS, AND SO ON IN NUTRIENT RICH WASTEWATER CAN REGROW IN THE PURPLE PIPE.

BUT THE ABSENCE OF ENDPOINT TESTING AND CONTROLS MILES FROM THE TREATMENT FACILITY IS A DISTURBING CONCERN.

ANIMAL STUDIES EXCLUSIVELY FOCUS ON INGESTION, BUT HUMAN EXPOSURE.

CONTACT WITH SKIN OR MUCOUS MEMBRANES AND BREATHING THE AEROSOLS IS LACKING.

NO STUDIES HAVE INVESTIGATED THE EFFECTS OF SECONDARY WASTEWATER SPRAYED OR DRIPPED ADJACENT TO THE CITY'S CONSERVATION AREAS ON ANIMAL AND PLANT SPECIES.

THIS IS AN UNCONTROLLED EXPERIMENT, AND YOU RECALL THE HOPE INCIDENT WHERE THE KIDS ACTUALLY DRANK THE WASTEWATER.

SOME OF THEM GOT SICK. I THINK THEY SUED AND SETTLED OUT OF COURT.

BUT MY MAIN CONCERN IS THE BREATHING OF THE AEROSOLS AND THE LACK OF END POINT TESTING, WHICH WOULD MAKE IT PROHIBITIVE TO USE THE RECYCLED WASTEWATER AT THE RATES THEY'RE CHARGING. I REALLY URGE THE CITY TO LOOK INTO THE DETAILS OF THIS, THE STUDIES AND MY CONCERNS.

THANK YOU.

HI, MY NAME IS MICHAEL DRENNAN. I'M A RESIDENT OF CARLSBAD, AND I'M ALSO ON THE BOARD OF THE AMERICAN SOCIETY OF CIVIL ENGINEERS SAN DIEGO CHAPTER THE, KNOWN AS ACE AND ACE PUTS OUT A NATIONAL REPORT CARD ABOUT EVERY FOUR YEARS ON THE STATE OF OUR INFRASTRUCTURE NATIONALLY.

AND IT WAS SPURRED TO DO THIS ABOUT 20 YEARS AGO BECAUSE THEY SAW A LACK OF FUNDING TO SUPPORT INFRASTRUCTURE IN GENERAL, FROM ROADS TO BRIDGES TO WATER AND WASTEWATER.

AND SO THE MOST RECENT REPORT CARD WAS IN 2021.

[00:40:03]

AND IT WAS POINTING OUT TO VARIOUS DECISION MAKERS LIKE YOURSELF THAT WE NEED FUNDING FOR INFRASTRUCTURE.

AND SO I ACKNOWLEDGE THE THE EFFORTS THAT THE CARLSBAD GROUP HERE IS DOING TO KIND OF TAKE RESPONSIBILITY FOR WHAT IT ACTUALLY COSTS TO MAINTAIN OUR INFRASTRUCTURE. IT'S LIKE HAVING A HOUSE WITH A ROOF ON IT. WE ALL KNOW IT'S IMPORTANT TO TAKE CARE OF OUR, YOU KNOW, THINGS THAT WE NEED TO MAINTAIN THEM TO SO THAT THEY STILL SERVE US.

AND SO THE CALIFORNIA ACTUALLY HAS DONE OR HAS ACTUALLY DONE A CALIFORNIA REPORT CARD FOR BOTH WATER AND WASTEWATER.

THE GRADES ARE A LITTLE BETTER THERE. THE LAST TIME IT WAS A C, WHICH MEANS IT'S MEDIOCRE AND NEEDS ATTENTION.

SO IN GENERAL, WE'RE VERY MUCH IN FAVOR OF REPORTS LIKE THIS THAT, YOU KNOW, REALLY POINT OUT WHAT'S THE IMPORTANCE OF LOOKING AT, YOU KNOW, WHAT DOES IT TAKE TO OPERATE AND MAINTAIN INFRASTRUCTURE TO KEEP IT, PROVIDING, YOU KNOW, THE LEVEL OF SERVICE THAT WE'RE ALL EXPECTING.

AND SO WE ACKNOWLEDGE THE WORK THAT YOU ALL ARE DOING AND SUPPORT THE RECOMMENDATION.

WATER IS LIFE. YOU KNOW, IT'S ONE OF THE ONE INFRASTRUCTURE THAT WE CAN'T LIVE WITHOUT.

SO THANK YOU FOR YOUR EFFORTS. THERE ARE NO MORE SPEAKERS.

THANK YOU. QUESTIONS FROM COUNCIL. MR. SHIN. THANKS FOR THE PRESENTATION.

JUST A COUPLE OF THINGS REAL QUICK. SO IN REGARDS TO IN REGARDS TO WHY WE ARE SO MUCH LOWER THAN THE REST OF THE COUNTY, IS A LOT OF THIS ATTRIBUTED AND CORRELATED TO THE FACT THAT WE HAVE THIS RECYCLING FACILITY? COUNCIL MEMBER SHIN FROM THE WAY I SEE IT, IT'S ALSO HOW WE OPERATE OUR SYSTEM, OUR OUR OPERATIONS OF OUR SYSTEM IS MOSTLY GRAVITY.

SO THEREFORE WE HAVE LESS INFRASTRUCTURE, LESS PUMP STATIONS TO PUMP INTO THE OTHER ZONES.

AND SO PUMP STATIONS AND LIFT STATIONS, ALL THOSE MECHANICAL EQUIPMENT IS SUPER EXPENSIVE AND THAT ALSO CONTRIBUTES TO IT.

WE ALSO HAVE A YOUNGER SYSTEM. SO A LOT OF OUR SYSTEM, PROBABLY THE NEWER AREAS, THAT INFRASTRUCTURE DOESN'T NEED TO BE ATTENDED TO AS MUCH AS MAYBE THE OLDER AREAS AS CARLSBAD VILLAGE IS A VERY OLD AREA THAT NEEDS THE MORE UPDATING.

SO IF WE CAN SIT THERE AND BALANCE OUR INFRASTRUCTURE REPLACEMENTS, THEN IT'S GOING TO BE AN ONGOING INFRASTRUCTURE REPLACEMENT KIND OF SCHEDULE INSTEAD OF EVERYTHING ALL AT ONCE. KIND OF THE WAY THIS CITY WAS BUILT WAS EVERYTHING ALL AT ONCE.

AND WE'RE TRYING TO MOVE AWAY FROM THAT BECAUSE IT'S NOT SUSTAINABLE.

WE'D HAVE TO DO LIKE A BOLUS OF INFRASTRUCTURE PROJECTS AT ONCE BECAUSE WE BUILT IT ALL AT ONE TIME, RIGHT? CORRECT. OKAY. I WOULD BASICALLY HAVE TO TAKE OUT THE WHOLE VILLAGE FOR PROBABLY TWO YEARS TO REPLACE ALL OF THAT INFRASTRUCTURE, AND THEN IT WOULD BE ALL BRAND NEW, BUT THAT'S JUST NOT REALLY OBTAINABLE OR DOABLE.

GOTCHA. OKAY. AND THEN OUR FINANCIAL RESERVES, THE SPEND DOWN.

SO OUR FINANCIAL RESERVES CURRENTLY, RIGHT NOW, IS THAT ALSO I'LL TAKE A STEP BACK.

SO WE JUST WENT THROUGH A WAVE OF INFLATION. AND THAT PRESSURE, I'M SURE, TOOK PLACE HERE IN OUR WATER FACILITY.

SO COMBATING THAT INFLATION, WAS THAT A PART OF THE FINANCIAL RESERVES.

DO WE USE THAT IN ORDER TO BE ABLE TO KIND OF GET THROUGH THOSE THREE YEARS? THE SHORT ANSWER IS YES. SO IT'S WHY, OUR RATES WITH THE SAN DIEGO COUNTY WATER AUTHORITY WITH 13%, WHY OUR RATES ARE, ON AVERAGE, 14. WE'RE ABLE TO USE THOSE RESERVES TO KIND OF SMOOTH OUT THESE RATES FOR OUR CUSTOMERS AND IT'S ALSO WHY YOU SEE A 6% PROPOSED IN THAT THREE IN THAT THIRD YEAR.

GOTCHA. AND DURING THAT TIME, WE DIDN'T DIP BELOW, RIGHT.

WE WERE ABLE TO SUSTAIN OURSELVES LIKE TO WE DIDN'T NEED TO PULL MONEY FROM ANY OTHER SOURCES.

AMONG THE DIFFERENT RESERVE BUCKETS, WE THERE ARE DIFFERENT FUNDS THAT ARE NOT RESTRICTED.

SO WE DO EVERY YEAR WHEN THE FINANCE DEPARTMENT UPDATES THE FINANCIAL REPORT, WE MAKE RECOMMENDATIONS ABOUT TRANSFERRING BETWEEN, FOR EXAMPLE, OUR OPERATING RESERVES AND OUR REPLACEMENT RESERVES.

GOTCHA. AND I SAY THAT IN SOME REGARDS SO THAT THE PUBLIC CAN UNDERSTAND THAT IN THE NEXT THREE YEARS, WE MAY BE FACING YET ANOTHER WAVE OF INFLATION AND WE'RE DOING INFRASTRUCTURE PROJECTS AT THE SAME TIME. SO LET'S JUST SAY, FOR EXAMPLE, ALL COST OF GOODS TARIFFS, THIS THAT ALL CREATES AN INCREASE OF COSTS. WE LOSE WORKERS UP TO LA SO THAT THEY CAN GO BUILD OUT LA AND NOW WE'RE STRESSING OURSELVES OUT RIGHT.

[00:45:01]

SO IN THREE YEARS IF WE'RE GOING NEGATIVE DO WE JUST INCREASE THE COST LIKE TO MAKE UP FOR THAT LOSS.

CORRECT? YES, THAT'S EXACTLY WHAT WE'LL BE DOING.

WE'LL BE USING THOSE RESERVES IF THEY ARE, IF THOSE INFLATED COSTS ARE BEYOND WHAT WE ASSUMED IN THIS NEXT THREE YEARS.

GOTCHA. OKAY. AND THEN JUST KUDOS TO THAT GUY IN THE SEWER.

I'VE BEEN DOWN THERE AND THERE WASN'T A CAT THAT THEY SAID WAS DOWN THERE WHEN THEY CALL 911.

SO THANK YOU FOR YOUR TIME. ANY OTHER QUESTIONS, MISS BURKHOLDER? I JUST HAVE ONE. THANK YOU. WHAT MR. BORELLO WAS SAYING.

I SAW YOU TAKING NOTES. WOULD YOU JUST SPEAK TO THE ENDPOINT TESTING THAT HE WAS REFERRING TO? I BELIEVE HE WAS REFERRING TO THE ENDPOINT TESTING OF THE RECYCLED WATER, PROBABLY FROM THE POINT WHERE IT COMES FROM THE CARLSBAD WATER RECYCLING FACILITY TO THE ENDPOINT OF THE DISTRIBUTION SYSTEM.

SO WE DO NOT HAVE TESTING FACILITIES WHEN IT IS DISTRIBUTE OUT TO OUR FROM OUR RECYCLED FACILITY.

IT MEETS TITLE 22 RECYCLED WATER STANDARDS. TITLE 22 RECYCLED WATER STANDARDS IS NOT FOR CONSUMPTION.

HOWEVER, BECAUSE OF THE CIRCULATION OF OUR DISTRIBUTION SYSTEM AND HOW IT IS USED, IT STAYS WITHIN THE DISTRIBUTION SYSTEM ONLY A SHORT PERIOD OF TIME WHERE THE TITLE 22 STANDARDS ARE STILL MET.

WE DO TAKE SAMPLES PERIODICALLY. THEY'RE CALLED GRAB SAMPLES FROM DIFFERENT AREAS OF THE SYSTEM.

THAT WAY WE CAN VERIFY WHAT IS GOING ON IN OUR SYSTEM.

THANK YOU. THAT SATISFIES MY QUESTION. THANKS.

ANY OTHER QUESTIONS, MISS BHAT-PATEL? YES. THANK YOU.

THANKS FOR THE PRESENTATION. COULD YOU BRING UP ONE OF THE SLIDES WITH THE PROPOSED RATES AND.

EITHER ONE IS FINE. I THINK WATER WOULD BE GREAT.

ACTUALLY, THE GRAPH WOULD BE AWESOME. THANK YOU.

SO WHEN WE'RE LOOKING AT THIS, I JUST WANTED TO IT'S JUST MORE TO CLARIFY BECAUSE WE'RE LOOKING AT OUR CURRENT AND OUR PROPOSED.

BUT FOR EVERY OTHER AGENCY THIS IS THEIR CURRENT.

THAT'S RIGHT. CURRENT OR GOING INTO EFFECT JULY, 2026, BECAUSE OUR INCREASE WOULD GO INTO EFFECT JULY 2026 OR 2025.

SORRY. OKAY. AND SO BUT FOR EVERYONE ELSE, THIS IS AS OF RIGHT NOW, WHAT WE TRY TO DO.

OKAY. AND THE REASON WHY I SAY THAT IS BECAUSE WE DON'T HAVE YET WHAT THEY'RE GOING TO END UP SHOWING IN TERMS OF THEIR, YOU KNOW, RATE INCREASES. AND SO I JUST WANT EVERYONE THAT'S LISTENING TO BE AWARE OF.

WHEN YOU LOOK AT THIS GRAPH, OBVIOUSLY THE NUMBERS AND THE PICTURE MATTERS.

AND SO I SEE US OBVIOUSLY STILL WITH THE PROPOSED BELOW, AND I'M ASSUMING THAT WILL STILL BE HOPEFULLY BELOW MANY OF THESE AGENCIES. AND I JUST WANT TO MAKE SURE THAT THAT'S ON THE RECORD.

SO THAT WAS MY MAIN QUESTION. OTHER THAN THAT THANK YOU.

SO IT'S MY UNDERSTANDING THE DRINKING WATER WHEN YOU TURN ON YOUR TAP, YOU CAN TAKE AS LITTLE OR AS MUCH AS YOU WANT.

AND IT'S ABOUT A PENNY A GALLON DELIVERED TO YOUR HOME, CLEAN AND DRINKABLE.

THAT'S CORRECT. ON AVERAGE FOR OUR SINGLE FAMILY RESIDENTIAL CUSTOMERS, IT'S A PENNY A GALLON.

OKAY, SO I THINK THAT'S A GREAT DEAL AND ANYTIME WE FLUSH OUR TOILET, EVERYTHING DISAPPEARS.

I THINK THAT'S A GREAT DEAL AS WELL. BUT WE TALK WE'RE TALKING ABOUT INCREASES OF SOMETHING IN THE RANGE OF 61 BUCKS PER BILL. MOST PEOPLE THAT THEY CAN AFFORD THAT.

BUT THERE ARE SOME RESIDENTS WHO ARE ON FIXED INCOME.

SOCIAL SECURITY DOESN'T GO UP AT THAT SAME PERCENTAGE INCREASE.

DO WE HAVE ANY KIND OF GRANT OR SCHOLARSHIP TYPE OF PROGRAM FOR PEOPLE WHO SIMPLY CAN'T AFFORD THAT MUCH OF AN INCREASE? I CAN SPEAK TO THAT. THANK YOU FOR THE QUESTION. THERE'S A COUPLE OF DIFFERENT THOUGHTS AROUND ASSISTING LOW INCOME PEOPLE WITH PAYING FOR BILLS.

ONE THING WHEN PEOPLE CALL OUR BILLING HAVING TROUBLE PAYING THEIR BILLS, THE BILLING STAFF DOES TRY TO WORK WITH THEM AS FAR AS PAYMENT PLANS GO, AND ALSO CONNECT THEM TO 211, WHICH IS A REGIONAL PROGRAM TO HELP MAKE SURE THAT PEOPLE GET ACCESS TO ALL OF THE FINANCIAL AID THAT THEY CAN, WHETHER IT'S SUPPORT WITH BUYING FOOD OR RENTAL ASSISTANCE, THAT KIND OF THING.

THERE IS UNDER PROPOSITION 218 WATER AGENCIES IN CALIFORNIA IN PARTICULAR ARE LIMITED IN HOW THEY CAN USE THEIR REVENUE FOR RATE ASSISTANCE.

[00:50:05]

THAT SAID, THERE HAVE BEEN PROPOSALS WITHIN THE LAST YEAR AT THE STATE AND FEDERAL LEVEL FOR WATER BILL ASSISTANCE, AND OUR STAFF DOES TRACK THOSE. WOULD IT BE FAIR TO SAY THAT WE WOULD NEVER TURN OFF ANYBODY'S WATER IF THEY LEGITIMATELY JUST COULDN'T AFFORD IT? THAT HAS NOT BEEN OUR PRACTICE. I THINK IT'S A STANDARD ACROSS THE STATE THAT WE CANNOT LEGALLY USE OTHER PEOPLE'S BILLS TO SUBSIDIZE THE BILL.

AND SO WE DO HAVE SHUTDOWNS. THOSE DID PAUSE DURING COVID PER THE GOVERNOR'S ORDER.

OKAY. THANK YOU. ANY COMMENTS FROM COUNCIL? MOTION.

YES. MOVE. ADOPTION OF ALL FOUR RESOLUTIONS AND AGENDA ITEM EIGHT.

SECOND [INAUDIBLE]. THAT PASSES UNANIMOUSLY. [INAUDIBLE].

[COUNCIL COMMENTARY AND REQUESTS FOR CONSIDERATION OF MATTERS]

ANY CLOSING REMARKS? LET'S START WITH YOU, MISS BHAT-PATEL.

NONE. THANK YOU, MISS ACOSTA. THANK YOU. I AM LOOKING AT THE LIST OF THINGS THAT I'M ON THIS MORNING.

THE LEGISLATIVE SUBCOMMITTEE MET RIGHT HERE IN COUNCIL CHAMBERS AT 9AM AND HAD A REALLY GOOD DISCUSSION AMONGST THE LEGISLATIVE BILLS THAT WE EXPECT TO SEE THIS COMING YEAR.

THERE ARE QUITE A FEW THAT HAVE TO DO WITH WATER AND LOW INCOME RATE ASSISTANCE.

SO THAT WAS REALLY A VERY TIMELY TO HAVE THIS CONVERSATION.

WE ALSO LOOKED AT OUR LOCAL LEGISLATORS BILLS THAT ARE COMING OUT, BUT THEY DON'T HAVE THEIR FULL BILL PACKAGES YET.

SO I EXPECT NEXT MONTH'S MEETING WE WILL BE ABLE TO TAKE SOME POSITIONS.

WE WEREN'T ABLE TO TAKE ANY TODAY. THE LEAGUE OF CALIFORNIA CITIES SAN DIEGO DIVISION MET YESTERDAY ON ZOOM, AND WE HAD A PRESENTATION FROM THE LEGISLATIVE DIRECTOR FOR THE LEAGUE OF CALIFORNIA CITIES, JASON RYAN AND HE WALKED US THROUGH KIND OF WHAT'S HAPPENING AT THE STATE LEVEL WITH BILLS THAT AFFECT CITIES, TO PROTECT OUR LOCAL AUTHORITY, TO FOCUS ON CAL CITY'S MAIN PRIORITY AREAS, INCLUDING CLIMATE RESILIENCY AND DISASTER PREPAREDNESS, HOUSING AND HOMELESSNESS ASSISTANCE.

PUBLIC SAFETY WAS A TOPIC OF CONVERSATION AND, OF COURSE, PROTECTING REVENUE AND ECONOMIC DEVELOPMENT FOR CITIES.

SO THERE'S A LOT MORE TO COME IN THAT AREA AND OF COURSE, WE'RE TALKING ABOUT WATER.

THE OTHER ONE I SIT ON IS THE SAN DIEGO COUNTY WATER AUTHORITY, AND I SPENT THE WEEKEND IN THE TIJUANA RIVER VALLEY, TOURING THE ESTUARIES AND PARTICIPATING IN A WATER FELLOWSHIP PROGRAM TO LEARN MORE ABOUT WATER ISSUES IN OUR REGION AND HOW WE CAN HELP.

THANK YOU AND HAPPY VALENTINE'S DAY. THAT'S WHY I'M WEARING RED.

MISS BURKHOLDER. YES. A LEGISLATIVE SUBCOMMITTEE THIS MORNING.

IT WAS EXCEPTIONAL. AS ALWAYS, WE LOOK FORWARD TO EVERY MONTH HAVING A GUEST SPEAKER KIND OF EXPAND ON WHAT'S GOING ON IN THE REGION AND INTO DIFFERENT SUBJECT MATTERS.

I WAS GOING TO SAY HAPPY VALENTINE'S AS WELL, BUT I'LL SAY HAPPY PRESIDENT'S DAY BECAUSE I BECAUSE I DON'T HAVE ANYTHING ELSE UNTIL AFTER THAT. MR. SHIN? YEAH, JUST ONE THING. YOU KNOW, WE GET A LOT OF ACCOLADES FROM BEING STAFF WHO GET TO WEAR A BADGE AND GET TO BE THE FOREFRONT OF THE CITY, BUT I REALLY THINKTHERE'S SO MANY UNSUNG HEROES LIKE THAT PHOTO THAT AMANDA GOT TO SHOW US THAT YOU KNOW, I JUST WOULD THE LEVEL OF DIFFICULTY AND THE WILLING TO DO THAT AS A CAREER AND TO NOT GET THANKED OFTEN ENOUGH.

SHOULD BE THANKED HERE IN THIS COUNCIL. SO LET THEM PLEASE KNOW THAT I BELIEVE I'M NOT SPEAKING FOR ALL FIVE OF US, BUT I DO THINK WE ALL AGREE THAT THEY ARE THERE DOING WORKS, THAT THIS IS WHY THE PUBLIC PAYS US, RIGHT? IT'S IN ORDER TO DO JOBS LIKE THIS THAT THEY DON'T WANT TO DO.

SO JUST A LOT OF APPRECIATION TO YOUR STAFF. THANK YOU.

ASSISTANT CITY MANAGER. NOTHING, SIR. CITY ATTORNEY? NOTHING. THANK YOU. CITY CLERK. WE'RE ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.