[00:00:01] >> I'M CALLING THE MEETING TO ORDER. PLEASE TAKE ROLE. [CALL TO ORDER] >> COUNCIL MEMBER SHIN. >> PRESENT. >> COUNCIL MEMBER BURKHOLDER. >> PRESENT. >> COUNCIL MEMBER ACOSTA? >> HERE. >> MAYOR PRO TEM BHAT-PATEL. >> HERE. >> MAYOR BLACKBURN. >> PRESENT. ALL FIVE COUNCILMEMBERS ARE PRESENT. I NEED TO READ THE FOLLOWING. THE CITY COUNCIL WILL ALSO BE SERVING AS A CARLSBAD MUNICIPAL WATER DISTRICT BOARD OF DIRECTORS ON PUBLIC HEARING ITEM NUMBER 5. NEXT IS THE PLEDGE. MS. BHAT-PATEL, WILL YOU PLEASE LEAD US? >> SURE. PLEASE STAND. PUT YOUR RIGHT HAND OVER YOUR HEART. READY? BEGIN. >> >> NEXT IS APPROVAL OF THE MINUTES, [APPROVAL OF MINUTES] THE MINUTES OF THE REGULAR MEETING HELD MARCH 25TH OF 25, AND THE SPECIAL MEETING HELD APRIL 15TH OF 2025. >> SO MOVED. >> SECOND. >> PLEASE VOTE. PASSES UNANIMOUSLY. NEXT IS PRESENTATIONS. [PRESENTATIONS] I INVITE MAYOR PRO TEM BHAT-PATEL TO PRESENT TO THE PARK SUPERINTENDENT, ROGER HAVLAK AND CAL FIRE URBAN FORESTER, MARCO DE ANDA. >> YES, THANK YOU. MR. HAVLAK, AND DE ANDA, IF YOU'D LIKE TO COME UP AND THEN I'LL SAY A FEW WORDS AND I'LL ALSO HAVE YOU ALL SAY A FEW THINGS AS WELL. JUST BEFORE I SAY THE PROCLAMATION, I'M SURE YOU ALL KNOW IN THE CITY OF CARLSBAD TREES ARE AN ESSENTIAL PART OF OUR COASTAL CHARACTER AND ENVIRONMENTAL HEALTH. THEY HELP ENHANCE OUR NEIGHBORHOOD, SUPPORT LOCAL WILDLIFE, AND HELP TO COMBAT CLIMATE CHANGE. ARBOR DAY IS AN OPPORTUNITY FOR OUR COMMUNITY TO COME TOGETHER TO RECOGNIZE THE VALUE OF OUR URBAN FOREST AND RENEW OUR COMMITMENT TO PLANTING AND PRESERVING TREES THAT CONTRIBUTE TO CARLSBAD'S BEAUTY, SUSTAINABILITY, AND QUALITY OF LIFE. WITH THAT, WHEREAS IN 1872, J STERLING MORTON PROPOSED TO THE NEBRASKA BOARD OF AGRICULTURE, THAT A SPECIAL DAY BE SET ASIDE FOR THE PLANTING OF TREES AND ARBOR DAY IS NOW OBSERVED THROUGHOUT THE WORLD, AND WHEREAS ARBOR DAY PROVIDES A PLATFORM TO INCREASE AWARENESS OF THE CONNECTIONS BETWEEN HEALTHY FORESTS, ECOSYSTEMS, PEOPLE, AND ECONOMIES, AND WHEREAS TREES CAN REDUCE EROSION OF TOP SOIL, CUT HEATING AND COOLING COSTS, MODERATE TEMPERATURES, CLEAN AIR, PRODUCE OXYGEN AND PROVIDE HABITAT, AND WHEREAS TREES IN OUR CITY CAN INCREASE PROPERTY VALUES, ENHANCE THE ECONOMIC VITALITY OF BUSINESS AREAS, AND BEAUTIFY OUR COMMUNITIES, AND WHEREAS, THE CITY OF CARLSBAD HAS ADOPTED A COMMUNITY FOREST MANAGEMENT PLAN AND HAS BEEN RECOGNIZED AS A TREE CITY USA BY THE NATIONAL ARBOR DAY FOUNDATION FOR THE 21ST CONSECUTIVE YEAR, AND WHEREAS THE CITY WILL CELEBRATE ARBOR WEEK BY HAVING VOLUNTEERS PLANT TREES AND LEARN ABOUT TREE CARE AT AN ARBOR DAY EVENT AT STAGECOACH COMMUNITY PARK ON APRIL 26TH, 2025, THEREFORE, I MAYOR PRO TEM PRIYA BHAT-PATEL, ON BEHALF OF THE MAYOR AND CITY COUNCIL HEREBY PROCLAIM THE WEEK OF APRIL 20TH-26TH, 2025 AS ARBOR WEEK IN THE CITY OF CARLSBAD. WITH THAT, I'LL GO AHEAD AND PASS IT OFF TO YOU. >> THANK YOU, MAYOR PRO TEM. MAYOR, CITY COUNCIL, THANK YOU VERY MUCH FOR THIS IMPORTANT ARBOR WEEK PROCLAMATION AND YOUR ONGOING SUPPORT FOR OUR CARLSBAD FORESTRY SERVICES THAT WE PROVIDE. MY NAME IS ROGER HAVLAK, AND I'M YOUR NEW PARK SUPERINTENDENT. I JUST STARTED ON MARCH 31ST. AS THE PROCLAMATION STATES, TREES DO PLAY SUCH A VITAL ROLE IN OUR NATURAL ECOSYSTEM HERE IN CARLSBAD, AND THE PARKS AND RECREATION TEAM IS DEDICATED TO NOT ONLY SUSTAINING THE CITY'S TREE POPULATION OF OVER 45,000, BUT ENSURING THAT IT THRIVES. WE'D ALSO LIKE TO INVITE THE COMMUNITY TO PARTICIPATE IN THIS YEAR'S ARBOR DAY PLANNING EVENT ON APRIL 22ND, AT STAGECOACH COMMUNITY PARK FROM 8:30 TO 10:30 AM. OUR DEPARTMENT HAS HOSTED THIS EVENT AND SIMILAR EVENTS FOR THE PAST 21 YEARS, AND WE WOULD APPRECIATE THE COMMUNITY'S INVOLVEMENT IN SUCH. AT THIS TIME, I'D LIKE TO INTRODUCE MARCO DE ANDA. HE IS OUR REGIONAL URBAN FORESTER WITH CALFIRE TO SAY A FEW WORDS ABOUT TREE CITY USA PROGRAM AND CARLSBAD'S DESIGNATION. >> THANK YOU. >> GOOD AFTERNOON. THANK YOU FOR INVITATION AND CONGRATULATIONS ON YOUR 21ST CONSECUTIVE AWARD AT TREE CITY USA. THE NATIONAL ARBOR DAY FOUNDATION RECOGNIZES CITIES THAT COMMIT TO THE ESTABLISHMENT AND SURVIVABILITY OF TREES THROUGH THE TREE CITY USA AWARD. THEY REQUIRE FOUR THINGS THAT THE CITY DOES, A TREE BOARD, A TREE CO-ORDINANCE, $2 PER CAPITA, AND AN ARBOR DAY OBSERVANCE. PRIYA JUST COMMENTED ALL THE BENEFITS THAT TREES PROVIDE. ON BEHALF OF THE TREE CITY USA, [00:05:02] MY NAME IS MARCO DE ANDA, REGIONAL URBAN FORESTER. I'D LIKE TO PRESENT THE TREE CITY USA AWARD. >> THANK YOU. [APPLAUSE] >> CONGRATULATIONS. I INVITE YOU TO MEET US IN THE FRONT HERE FOR A QUICK PIC. >> OF COURSE. [BACKGROUND] >> NEXT IS REPORT OUT ON CLOSED SESSION. CITY ATTORNEY. >> THANK YOU, MAYOR. THERE WAS NO REPORTABLE ACTION. >> THANK YOU. NEXT IS PUBLIC COMMENT. I HAVE TO READ THE FOLLOWING. [PUBLIC COMMENT] THE BROWN ACT AND THE CITY 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 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 A TOTAL OF 15 MINUTES AT THE BEGINNING OF THE MEETING. CITY COUNCIL RECEIVE 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 MAKE SURE THAT THE PEOPLE'S BUSINESS CAN BE CONDUCTED EFFICIENTLY AND THAT THE CHAMBER IS A PLACE WHERE ALL POINTS OF VIEW ARE WELCOMED AND RESPECTED. WHEN THE CLERK CALLS YOUR NAME, YOU'LL COME UP TO THE PODIUM. YOU'LL HAVE THREE MINUTES. AT THE 2.5 MINUTE MARK, THE PODIUM LIGHT WILL TURN YELLOW. THAT'S GIVING YOU NOTICE THAT YOU ONLY HAVE 30 SECONDS LEFT. I'VE ASKED THE CLERK TO TURN OFF THE MICROPHONE AT THE CONCLUSION OF THREE MINUTES. THAT WAY, EVERYBODY GETS EXACTLY THE SAME AMOUNT OF TIME TO SPEAK. PLEASE CALL THE FIRST SPEAKER. >> BENNETT BODENSTEINER, FOLLOWED BY GLEN BERNARD. >> HELLO. I'M BENNETT BODENSTEINER. I'M A SOPHOMORE AT CARLSBAD HIGH SCHOOL. I'VE BEEN LIVING IN THE CITY SINCE I WAS TWO YEARS OLD. I'M A MEMBER OF THE CARLSBAD WATER POLO TEAM AND THE CARLSBAD SWIM TEAM. I'VE BEEN USING THE CARLSBAD CITY POOL SINCE I WAS 11 YEARS OLD, PRETTY MUCH EVERY SINGLE DAY IN MY LIFE. THE PROBLEM I CAME HERE TO TALK ABOUT IS THE LACK OF A POLICY ALLOCATING POOL SPACE AT CARLSBAD CITY POOLS. THE RESULT OF THIS PROBLEM IS A MAJORITY PERCENTAGE OF AFTERNOON POOL TIME GOING TOWARDS FOR-PROFIT ORGANIZATIONS. I HAVE WITH ME TODAY THE SCHEDULE OF ALGA NORTE, AND THIS LARGE GREEN BLOCK RIGHT HERE IS THE NCA AQUATIC SWIM TEAM, WHICH IS A FOR-PROFIT ORGANIZATION THAT'S NOT MAJORITY CARLSBAD RESIDENTS. THIS SMALL GREEN BLOCK DOWN HERE IS MY CARLSBAD HIGH SCHOOL SWIM TEAM. THIS SMALL AMOUNT OF SPACE WE HAVE WAS ORIGINALLY DENIED TO US BY THE CITY, AND WE HAD TO HAVE PARENTS AND COACHES SEND EMAILS AND SHOW UP TO CITY COUNCIL MEETINGS FIGHTING FOR THE SPACE. HOWEVER, IN THE FALL, CARLSBAD HIGH SCHOOL WILL NEED TWICE AS MUCH SPACE AS WE HAVE RIGHT NOW TO GUARANTEE PRACTICE TIME FOR OUR THREE WATER POLO TEAMS. [00:10:02] WE'LL BE COMPETING FOR THIS TIME WITH FIVE OTHER HIGH SCHOOLS AND VARIOUS FOR-PROFIT ORGANIZATIONS. NOT HAVING A POLICY, ALLOCATING POOL SPACE MAKES THIS SITUATION EXTREMELY STRESSFUL BECAUSE WE'LL BE AT THE WHEEL OF THE CITY MANAGER TO WHEN, WHERE, AND IF WE CAN PRACTICE. TO SOLVE THIS PROBLEM, WE CAN CREATE A POLICY BASED ON THAT OF ADMINISTRATIVE ORDER NUMBER 80, WHICH GIVES FIELD SPACE PRIORITY TO CARLSBAD RESIDENTS AND NON-PROFIT ORGANIZATIONS. A POLICY OF THIS NATURE IS NECESSARY BECAUSE CARLSBAD RESIDENT NONPROFITS ARE MISSING OUT ON POOL TIME FOR OUT OF CITY ORGANIZATIONS. INSIDE CARLSBAD UNIFIED SCHOOL DISTRICT, MY TWIN BROTHER AT SAGE CREEK OVER THE PAST YEAR HAS GARNERED ENOUGH SUPPORT TO START A WATER POLO TEAM AT THE SCHOOL, BUT THEY'VE BEEN TOLD BY THE CITY THAT THERE WILL NOT BE POOL SPACE FOR THEM TO PRACTICE AT ALGA NORTE IN THE UPCOMING FALL SEASON. THEY WERE TOLD THIS DESPITE BEING RESIDENTS OF THE CITY AND HAVING PARENTS THAT PAY TAXES TO SUPPORT THE POOL. MONROE'S CLOSURE WILL ONLY LAST FOR TWO YEARS, AND IT'S SIMPLE ENOUGH TO MAKE A POLICY FOLLOWING THAT OF ADMINISTRATIVE ORDER NUMBER 80, ALLOWING CARLSBAD RESIDENTS TO ACCESS THE GREAT POOLS THEY DESERVE AND PAY FOR. AS YOU ARE ABLE TO ACCOMPLISH THIS SPRING SEASON FOR THE CARLSBAD HIGH SCHOOL SWIM TEAM, I LOOK FORWARD TO THE CITY CONTINUING TO BALANCE THE NEEDS OF ALL USER GROUPS WITH A CONCRETE POOL ALLOCATION POLICY. THANK YOU. [APPLAUSE] >> ON SATURDAY, MY WIFE AND I DROVE OVER TO STATE STREET, PARKED THERE, AND WE WALKED OVER TO THE BEACH TO DO A BEACH WALK JUST UNDER FOUR MILES. BUT WE WERE VERY SURPRISED THAT WE WALKED INTO A RIOT. WE HAD NO IDEA, NONE. BUT I WAS WEARING A MARINE CORPS CAP AND MARINE CORPS SHIRT. THIS IS THE SHIRT I WAS WEARING. TO SOME OF THOSE PEOPLE, THIS RED THING WAS A TARGET FOR THEM BECAUSE WELL, LET'S GO BACK. THE BIDEN ADMINISTRATION WANTED EVERYBODY TO WATCH A CERTAIN DOCUMENTARY ON PBS ABOUT A WOMAN BORN IN LITHUANIA. HER NAME IS EMMA GOLDMAN. SHE READ MARKS WHEN SHE WAS YOUNG IN A FEW OF HIS BOOKS, AND SHE PROMOTED ANARCHIST POLITICAL PHILOSOPHY. SHE WANTED EVERY NATION TO BE SOCIALIST, WHICH REQUIRED CHAOS, ACCORDING TO HER. HER GOALS WERE IN PROGRESS IN GERMANY WHEN SOME ORDINARY PEOPLE WERE BOTHERED BY THE STREET DEMONSTRATIONS LIKE WHAT WE HAD IN CARLSBAD. THESE ORDINARY PEOPLE WANTED TO FIGHT THEM IN THE STREETS, SO THEY PUT ON BROWN SHIRTS SO THEY WOULDN'T ATTACK EACH OTHER. THEY SUCCEEDED IN WHIPPING UP ON THE SOCIALISTS AND THE COMMUNISTS OF THE STREETS OF BERLIN AND MUNICH. THEY BECAME POPULAR, AND THEY GOT ELECTED TO THEIR CONGRESS AND WENT SO FAR AS THE FUNNY LITTLE GUY WITH THE FUNNY LITTLE MUSTACHE TOOK OVER THE WHOLE COUNTRY, JUST FROM THAT ONE BEGINNING THAT A LOT OF PEOPLE APPRECIATED. EVENTUALLY, EMMA GOLDMAN HEARD ABOUT THE RAGS TO RICHEST STORIES, MANY OF THEM IN AMERICA, SO SHE CAME OVER HERE, AND SHE WAS ARRESTED SEVERAL TIMES FOR INCITING A RIOT AND FOR PLANNING TO KILL WEALTHY INDUSTRIALIST AND FINANCIER, HENRY CLAY FRICK. REMINDS ME OF HOW SOME PEOPLE FEEL ABOUT A GUY I LIKE NAMED ELON MUSK. THEN SHE WAS DEPORTED TO RUSSIA, WHICH I THINK GIVES OUR PRESIDENT A PRESIDENT THAT HE COULD COPY TO A VERY LARGE EXTENT. A COUPLE OF MORE THINGS THAT THE PRESIDENT CAN AND SHOULD DO. I WAS WITH THE FBI. AMERICA WOULD BE A BETTER PLACE IF THAT JOB TITLE OF THEIRS HAD THE WORD SPECIAL REMOVED FROM SPECIAL AGENT BECAUSE IT MESSES UP THEIR THINKING. ALSO ANOTHER GROUP OF PEOPLE. WELL, WE OWE A NAME CHANGE TO MEXICO. TRUMP TOOK GULF OF MEXICO, CHANGED IT TO GULF OF AMERICA. WE OWE THEM A NAME. I THINK IT WOULD BE A GOOD IDEA TO CHANGE THE NAME OF THE AMERICAN CIVIL LIBERTIES UNION TO THE MEXICAN CIVIL LIBERTIES UNION, AND THEY SHOULD HAVE THEIR HEADQUARTERS DOWN THERE, AS WELL, BECAUSE THEY CARE MORE ABOUT THE PEOPLE WHO ARE COMING THROUGH MEXICO FROM OTHER COUNTRIES INTO AMERICA. >> MIKE BARRERO, FOLLOWED BY CINDY VINOLIA. >> EVENING, MAYOR, COUNCIL. A LOT HAPPENED IN 250 YEARS. THE CONSTITUTION WAS DESIGNED TO PRESERVE THE LIBERTY WE CLAIMED IN THE DECLARATION OF INDEPENDENCE. IT SET THE FOUNDATION IN JUST ONE SENTENCE. [00:15:01] WE HOLD THESE TRUTHS TO BE SELF EVIDENT, THAT ALL MEN ARE CREATED EQUAL, THAT THEY ARE ENDOWED BY THEIR CREATOR WITH CERTAIN UNALIENABLE RIGHTS. THAT AMONG THESE ARE LIFE, LIBERTY AND THE PURSUIT OF HAPPINESS. JUST COMMON SENSE. THE FOUNDERS HAD STRONG MOTIVE IN THEIR DAY. THEY ALSO SAW OPPORTUNITY TO ACHIEVE THAT IDEAL, AND THEY WERE WILLING TO GIVE THEIR LIVES FOR RELIEF FROM OPPRESSION. THE NINTH AMENDMENT OF OUR CONSTITUTION IS LIKE AN ESCAPE CLAUSE IN A CONTRACT. IT ALLOWS PEOPLE THE RETENTION OF ALL UNALIENABLE RIGHTS, NOT JUST THOSE ENUMERATED IN THE BILL OF RIGHTS. THE TIME HAS COME TO EXERCISE THIS CLAUSE. OUR CONSTITUTION HAS BEEN IGNORED AS WE FACE DIRE ASYMMETRY AND POWER BETWEEN THE PEOPLE AND A NON LIMITED GOVERNMENT. IT WAS NEVER INTENDED THAT WAY. TODAY, IT'S UPSIDE DOWN. GOVERNMENT, TOGETHER WITH CORPORATIONS AND MEDIA HAVE ENGINEERED A MACHINE THAT OVERWHELMS AND DISTRACTS MOST CITIZENS FROM ENGAGING IN CIVIC DISCOURSE. WHEN WE DO, WELL, WE CAN'T EVEN CLAP ANYMORE. THERE'S NEVER ENOUGH TIME IN THE DAY LEFT OVER FROM THE DUTIES OF WORK, THE RESPONSIBILITIES OF FAMILY, THE ABSORPTION OF CORPORATE PROPAGANDA, AND WE'VE BEEN PROGRAMMED WITH A COMPULSIVE NEED TO BE ENTERTAINED. IN THE MEANTIME, OUR GOVERNMENT TAXES US INTO OBLIVION WITHOUT ANY VALUE IN RETURN. THEY POISON OUR BODIES AND LIVING SPACES. THE CORRUPTION IS SO OBVIOUS. THE WASTE IS SO DEPRESSING. WE ARE ABUSED AS ESSENTIALS ARE UNDER ATTACK. LAST WEEK, FORCED HOUSING DEVELOPMENTS. THIS WEEK, WATER RATE INCREASES, AND NO RELIEF IN SIGHT. I ASK THIS, MAYOR AND COUNCIL, ARE YOU WITH US OR THEM? THANK YOU. >> HI. MY NAME IS SINI VAN, AND I LIVE OVER ON COVE DRIVE, AND I'VE BEEN HERE BEFORE. ELECTED OFFICIALS HAVE A RESPONSIBILITY TO THOSE IN THEIR COMMUNITY, AND I'M HOPEFUL, PLEASE YOU WILL TAKE THE LEAD IN LOCAL CONTROL OF AN OUT-OF-CONTROL AIRPORT. CARLSBAD HAS AREAS THAT ARE DIRECTLY AFFECTED BY PALOMAR AIRPORT, AND I HAPPEN TO BE UNLUCKY ENOUGH TO BE ONE OF THEM. SINCE THE AMERICAN AIRLINE PLANES WERE GIVEN PERMISSION TO FLY, ALTHOUGH IT IS AN OVERSIZED PLANE AND NOT TECHNICALLY APPROPRIATE FOR THAT AIRPORT, THERE HAS BEEN FREE REIGN FOR ALL PILOTS. THIS MEANS PLANES ARE DEPARTING AT ALL HOURS WITH ABSOLUTELY NO CONSIDERATION FOR RESIDENTS. LAST WEEK, ON THURSDAY, SIX JETS DEPARTED IN LESS THAN ONE HOUR BEFORE THE 7:00 DEPARTURE TIME, VNAP. I'VE BEEN TO THE CITY COUNCIL MEETINGS, TO THE SAN DIO COUNTY BOARD MEETINGS, THE PALOMAR AIRPORT ASSOCIATION MEETING, AND IN THAT TIME, I'VE SEEN NO ACTION TO HELP THE CITIZENS. EVEN WHEN THERE ARE OVER 100 PEOPLE AT A PALOMAR AIRPORT ASSOCIATION MEETING OR DOZEN AT THE BOARD OF SUPERVISOR MEETING, OR 700 PEOPLE COMPLETING THE COUNTY SURVEY ON THE AIRPORT, WE HAVEN'T BEEN HELPED AT ALL. WE STILL HAVE AIR POLLUTION, NOISE POLLUTION, AND A VERY UNSAFE PLANE YOU GUYS, COME ON THAT PLANE IS NOT SLATED FOR THAT AIRPORT. I'VE SEEN ACTION THAT HAS BENEFITED THE PRIVATE PILOTS. I'VE SEEN ACTION THAT BENEFITS AMERICAN AIRLINES. I'VE SEEN ACTION THAT BENEFITS VENDORS WHO ARE ALSO ON THE PALOMAR AIRPORT ASSOCIATION BOARD. HOW THAT CAN BE LEGAL? I DON'T KNOW. I'M ASKING YOU, AS A PUBLIC OFFICIAL THAT ARE VOTED INTO OFFICE TO LOOK AT THOSE OF US WHO ARE AFFECTED IN CARLSBAD. I'M ASKING YOU TO EXERCISE YOUR DECISIONS FOR LOCAL CONTROL. I KNOW YOU'VE GOT IT, DO IT TO THINK NOT JUST OF AN OCCASIONAL PERSON BUT THE ACTUAL PEOPLE WHO LIVE UNDER THOSE PLANES THAT FLY OVER OUR HOUSE. I'M ASKING YOU TO EXERCISE YOUR LOCAL CONTROL AND DO THE JOB YOU WERE ELECTED TO DO A PLANE THAT LEAVES EVERY SINGLE MORNING, 6:40 EVERY MORNING, I WAKE UP. I DIDN'T RETIRE TO WAKE UP AT 6:40 EVERY MORNING. WHAT I'M ASKING YOU, YOU'VE CHANGED THE LIVES OF A LOT OF PEOPLE, AND YOU KNOW WHAT WHY PEOPLE DON'T COME BECAUSE THEY'RE, THEY'RE TIRED AND THEY DON'T THINK ANYBODY CARES ANYMORE. THERE WAS A RESOLUTION IN 2018, THE COURT CASE C4FA VERSUS THE COUNTY, AND IT WAS STATED IN ARTICLE 5 THAT THERE WOULD BE A DETERMINED ACTION TAKEN BY THE COUNTY TO ALLEVIATE THE IMPACT OF THE AIRPORT ON COLORS BAD RESIDENTS, AND IT HASN'T HAPPENED. PLEASE DO THE RIGHT THING. DON'T BE FOOLED INTO THINKING JUST BECAUSE YOUR CHAMBERS AREN'T FULL OF ANGRY CITIZENS, WE DON'T CARE. WE'RE JUST REALLY TIRED. COULD YOU JUST HELP US? HAVE A GREAT DAY. >> MA'AM, AT THE BACK OF THE ROOM IS SHEILA COBIAN, AN ASSISTANT CITY MANAGER. WOULD YOU TALK TO HER SO SHE CAN GIVE YOU DETAILS ABOUT WHAT WE'VE BEEN DOING? >> I WOULD LOVE TO. ENJOY THE REST OF THE DAY. >> AVERY COCHRAN. >> HELLO, MAYOR AND COUNCIL MEMBERS. [00:20:02] MY NAME IS AVERY COCHRAN, AND I LIVE OFF PALOMAR AIRPORT ROAD IN DISTRICT II. I'M A 10TH GRADER AT PACIFIC RIDGE SCHOOL AND I'VE LIVED IN CARLSBAD MY WHOLE LIFE. I LOVE LIVING HERE IN SUCH A BEAUTIFUL COMMUNITY THAT ALLOWS FOR YEAR-ROUND HIKING AND BIKING. HOWEVER, I'VE COME TO TALK TO YOU TODAY ABOUT AN ISSUE REGARDING THE SAFETY OF BIKERS AND PEDESTRIANS. THE SPEED LIMITS IN OUR CITY ARE QUITE HIGH, AND I THINK WE NEED TO LOWER THEM TO PROTECT THE SAFETY OF PEOPLE IN CARLSBAD. TODAY, I WOULD LIKE TO SHARE SOME DATA AND PROPOSE SOME POSSIBLE SOLUTIONS TO ADDRESS THIS PROBLEM IN OUR COMMUNITY. I LIVE NEAR THE INTERSECTION OF MELROSE DRIVE IN POINT SAN DIE LANE, WHICH HAVE SPEED LIMITS OF 55 AND 50 MILES AN HOUR. CREO ELEMENTARY SCHOOL IS ALSO LOCATED AT THIS INTERSECTION. WHENEVER I PASS BY IN THE MORNING OR AFTERNOON, I NOTICE THAT PEOPLE ARE CONSTANTLY DRIVING AT VERY HIGH SPEEDS, EVEN DURING DROP-OFF AND PICK-UP TIMES. MELROSE AND POINT CETIA ARE BOTH SURROUNDED BY RESIDENTIAL NEIGHBORHOODS, AND MANY PEOPLE BIKE AND WALK IN THE AREA, BUT IT OFTEN FEELS LIKE A HIGHWAY RATHER THAN A FAMILY NEIGHBORHOOD. WALKING OR BIKING ALONG STREETS WITH SUCH HIGH SPEED LIMITS IS MORE DANGEROUS THAN IT SHOULD BE AND COULD RESULT IN A DEADLY ACCIDENT IF SOMEONE WERE TO BE HIT. I HAVE APPRECIATED RECENT CHANGES TO WIDEN BIKE LANES, BUT I ALSO HOPE THAT THE CITY WILL TAKE ADDITIONAL STEPS TO PROTECT LOCAL RESIDENTS BY LOWERING SPEED LIMITS AND MONITORING TRAFFIC IN SCHOOL ZONES. RESEARCH HAS SHOWN THAT HIGHER SPEED LIMITS ARE MORE DANGEROUS, AND THEY ACTUALLY DO NOT LEAD TO SIGNIFICANT DECREASES IN DRIVING TIME IN AREAS WITH MANY TRAFFIC LIGHTS. ACCORDING TO A STUDY DONE BY UC BERKELEY, THE CHANCE OF A PEDESTRIAN OR BICYCLIST DYING IN AN ACCIDENT BUT THE CAR DRIVING AT 20 MILES PER HOUR IS 8%. THAT INCREASES TO 75% AT 50 MILES AN HOUR AND 92% AT 60. THIS MEANS THAT THE CHANCE OF DEATH BY A CAR ACCIDENT IN CARLSBAD IS MUCH HIGHER THAN OTHER NEARBY CITIES WITH MUCH LOWER SPEED LIMITS. I COME HERE TODAY TO ASK THE CITY OF CARLSBAD TO TAKE TWO DIFFERENT APPROACHES TO HELP RESOLVE THIS ISSUE. THE FIRST ACTION STEP IS TO DECREASE THE SPEED LIMITS IN CARLSBAD TO HELP INCREASE THE SAFETY OF PEDESTRIANS, BIKERS, AND DRIVERS. RECENTLY, BOTH THE CITIES OF SAN MARCOS AND SINDIS TOOK STEPS TO LOWER SPEED LIMITS ON CERTAIN ROADS IN THEIR COMMUNITIES. I ASKED THAT CARLSBAD DO THE SAME. ALL ROADS LINED WITH SCHOOLS AND HOMES SHOULD CONSIDER A LOWER SPEED LIMIT TO ENSURE THE SAFETY OF OUR RESIDENTS. THE RISK OF PEDESTRIAN DEATH INCREASES TO 46% AT 40 MILES PER HOUR, WHICH IS SIGNIFICANTLY LOWER THAN THE RISK OF DEATHS AT 50 OR 60 MILES PER HOUR. SECOND, I ASK THAT THE CITY PLEASE INCREASE POLICE PRESENCE NEAR CREO ELEMENTARY SCHOOL DURING DROP-OFF AND PICK-UP TIMES. I'VE ONLY SEEN TRAFFIC SAFETY THERE ONE MORNING THIS YEAR, BUT WHEN THEY ARE PRESENT, IT HELPS ENSURE THAT PEOPLE ARE DRIVING AT THE APPROPRIATE SPEED THROUGH SCHOOL ZONES. SADLY, WITHOUT THIS PRESENT, TOO MANY DRIVERS DISREGARD THE SAFETY OF PEDESTRIANS, OFTEN MAKING QUICK RIGHT-HAND TURNS BEFORE FOR THE CROSSING GUARD ENTERS THE CROSSWALK AND SPEEDING THROUGH THE INTERSECTION AT MORE THAN 50 MILES AN HOUR. THANK YOU AGAIN SO MUCH FOR LISTENING TO ME SPEAK, AND I HOPE YOU HAVE A GREAT EVENING. >> MA'AM, WILL YOU PLEASE TALK WITH TOM FRANK? HE'S WAVING HIS ARM BACK THERE? HE'S OUR TRANSPORTATION DIRECTOR. SHARE YOUR IDEAS WITH HIM, PLEASE. >> THAT'S FIVE SPEAKERS, MAYOR. >> THANK YOU. NEXT IS CONSENT CALENDAR. [CONSENT CALENDAR] ITEMS NUMBER 1 THROUGH 3. DO WE HAVE ANY SPEAKERS ON ANY OF THOSE? >> YES. WE HAVE ONE ITEM. WE HAVE ONE SPEAKER ON ITEM NUMBER 3. >> CALL THAT SPEAKER, PLEASE. >> GLEN BERNARD. >> 6217 SHAMROCK PLACE IS PROBABLY GOING TO BECOME AS NOTORIOUS AS WINDSOR POINT. I SEE A LOT OF PROBLEMS EXPANDING THE NUMBER 1 WELFARE STATE. IN THE WELFARE NATION, YOU EVER WONDER HOW MANY PEOPLE WOULD HAVE CROSSED THE SOUTHERN BORDER IN THE PAST FIVE YEARS IF THERE WAS NO WELFARE IN AMERICA? SOUNDS CRAZY TO PICTURE A NATION WITHOUT WELFARE. WHEN I WAS IN PERU WITH MY WIFE TOURING AND LIMA, OUR TOUR GUIDE, SO HELP ME GOD, LOOKED AT THE AMERICANS. HE HAD A DELIGHTFUL SMILE ON HIS FACE AND BRAGGED IN PERU, WE DON'T HAVE ANY WELFARE. WHAT A THOUGHT. BOGGLES THE MIND FOR THOSE OF US THAT HAVE BEEN LIVING IN AMERICA FOR AT LEAST 20 YEARS. ANYWAY, IF YOU'RE GOING TO DO ANOTHER WINDSOR POINT, ABOUT ANOTHER $100 MILLION GOLF COURSE, EVERYBODY LOVES THAT. IN PUBLIC ACT 1990, THERE WAS A WELL-KNOWN ARTIST IN AMERICA. WE'RE TALKING ABOUT MORE THINGS THAT ARE BAD, LIKE 6217 SHAMROCK PLACE. [00:25:02] IN 1990, THERE WAS A WELL-KNOWN ARTIST IN AMERICA WHO THOUGHT THAT IT WAS BEAUTIFUL TO BE LIVING WHERE THERE ARE NO FENCES BETWEEN THE HOMES. SHE HAD A VERY DIM VIEW OF CONGESTED SOUTHERN CALIFORNIA WHERE WE HAVE FENCES BETWEEN OUR HOUSES. TO HER, IT WAS LIKE A JAIL. SHE SAID, "IS THERE A CITY ANYWHERE IN AMERICA THAT WOULD WANT TO PAY ME FOR SOME PUBLIC ART THAT WOULD LOOK LIKE A JAIL? CARLSBAD IN 1990 SAID, YEAH, WE WILL. WE'LL PAY YOU 100 GRAND, AND THE CITIZENS OF CARLSBAD HAD A FIT. >> GLEN, YOU'RE STARTING TO DRIFT AWAY FROM THE TOPIC. >> WE'RE TALKING ABOUT WELFARE AND PUBLIC. >> GET BACK TO ITEM 15. >> BAD DECISION MAKING. THIS FELON HERE, EVERYBODY WHO DOESN'T KNOW ABOUT REMOVE THE BARS SHOULD HEAR THE REST OF THE STORY NOW. IT WAS ONLY 40 SECONDS. >> GLEN, THE PUBLIC ACT IS NOT PART OF AGENDA ITEMS. >> IT'S BAD DECISION-MAKING THAT SHOULD STOP. >> YOU'RE WELCOME TO TALK ABOUT IT DURING PUBLIC COMMENT. >> WELL, HOPEFULLY, WE GOT SOME PEOPLE CURIOUS ABOUT REMOVE THE BARS. >> DO WE HAVE ANY OTHER SPEAKERS? >> NO. >> ANY QUESTIONS OR COMMENTS ON THE CONSENT CALENDAR? MOTION, PLEASE. >> MOVE CONSENT ITEMS 1 THROUGH 3. >> SECOND. >> PLEASE VOTE. IT PASSES UNANIMOUSLY. NEXT IS ITEM NUMBER 4, CITY MANAGER. [4. FISCAL YEAR 2023-24 GROWTH MANAGEMENT PROGRAM MONITORING REPORT] >> THANK YOU. ITEM NUMBER 4 IS THE FISCAL YEAR 2023-2024 GROWTH MANAGEMENT PROGRAM MONITORING REPORT. FOR THE PRESENTATION IS CITY PLANNER ERIC LARDY. >> GOOD EVENING, MAYOR AND COUNCIL MEMBERS. THIS PRESENTATION COVERS THE GROWTH MANAGEMENT PLAN REPORT FOR FISCAL YEAR 2023 THROUGH 2024, COVERING THE CITY'S COMPLIANCE WITH STANDARDS FROM JULY 1, 2023, TO JUNE 30, 2024. CARLSBAD ZONING CODE REQUIRES THE PREPARATION OF AN ANNUAL MONITORING REPORT FOR THE GROWTH MANAGEMENT PROGRAM. THE PRIMARY PURPOSE IS TO PROVIDE A STATUS ON THE CITY'S GROWTH CAPS, AS WELL AS COMPLIANCE WITH THE PUBLIC FACILITY PERFORMANCE STANDARDS. RECENT STATE LAWS HAVE CHANGED THE NATURE OF THE REPORT WITH GROWTH MANAGEMENT PROGRAM, SPECIFICALLY STATE LAWS SB 166 AND SB 330, WHICH SET LIMITS ON LOCAL AGENCIES BY PROHIBITING BOTH RESIDENTIAL GROWTH MORATORIUMS AND RESIDENTIAL GROWTH CAPS, SUCH AS LIMITS ON THE NUMBER OF DWELLING UNITS. CARLSBAD'S GROWTH MANAGEMENT PROGRAM UTILIZE BOTH OF THESE. ACCORDING TO THE STATE DEPARTMENT OF HOUSING COMMUNITY DEVELOPMENT, THESE LIMITS ARE UNENFORCEABLE DUE TO THESE STATE LAWS. THEREFORE, ON APRIL 6, 2021, THE CITY COUNCIL ADOPTED TWO RESOLUTIONS TO SHOW ITS INTENT TO COMPLY WITH THESE LAWS AND SUSPENDED PORTIONS OF THE GROWTH MANAGEMENT PROGRAM RELATED TO UNIT COUNTS AND MORATORIUM PROVISIONS. THIS SLIDE SHOWS THE STATUS OF PUBLIC FACILITY COMPLIANCE WITH THE PERFORMANCE STANDARDS. IN THE BLUE COLUMNS, YOU CAN SEE THE DIFFERENT PUBLIC FACILITIES, AND IN THE GRAY COLUMNS, YOU CAN SEE THAT WE ARE IN COMPLIANCE WITH ALL OF THE GROWTH MANAGEMENT STANDARDS. DURING THIS PERIOD, IT ALSO COVERED THE TIME FRAME WHEN THE CITY'S HOUSING ELEMENT REZONE PROGRAM WAS ADOPTED IN JANUARY OF 2024. WHILE THE GROWTH CAPS WERE REMOVED BY THE CITY COUNCIL ACTION IN 2021, THIS REPORT IS THE FIRST ONE THAT SHOWS FUTURE DWELLING UNIT CAPACITIES BEYOND THOSE ORIGINAL GROWTH CAPS. THIS TABLE SHOWS THE GROWTH CAPS AND BUILD-OUT OF THE PREVIOUS REPORT. THIS SHOWS THE GROWTH CAPS AND BUILD-OUT IN THE CURRENT ESTIMATES, INCLUDING THOSE REZONES, SHOWING THAT IN THE NORTHWEST, NORTHEAST, AND CITYWIDE PROJECTIONS, THEY ARE EXCEEDING THOSE UNIT CAPS AT BUILD-OUT. AS THE UNIT PROJECTIONS HAVE INCREASED, SO HAVE SOME OF THE POPULATION ESTIMATES. THE REPORT SHOWS THAT AT BUILD-OUT OF THE CITY, THERE IS A NEED FOR ADDITIONAL ADMINISTRATIVE FACILITIES, LIBRARIES, AND PARKS. THIS WILL CONTINUE TO BE MONITORED ANNUALLY DURING THE ANNUAL CENSUS REPORTS AND ALSO UPDATED IN THE CITYWIDE FACILITY AND IMPROVEMENT PLANS, IMPLEMENTING THE CARLSBAD TOMORROW GROWTH MANAGEMENT PROGRAM SUBCOMMITTEE RECOMMENDATIONS. THIS CONCLUDES OUR RECOMMENDATION TO ADOPT AND RECEIVE THE REPORT. >> I'M OPENING A PUBLIC HEARING. DO YOU HAVE ANY SPEAKERS? >> THERE ARE NO SPEAKERS. >> CLOSING PUBLIC HEARING. QUESTIONS FROM COUNSEL. COMMENTS FROM COUNSEL. MOTION, PLEASE. >> MOVE THE ADOPTION OF THE RESOLUTION. >> SECOND. >> PLEASE VOTE. PASSES UNANIMOUSLY. [00:30:08] ITEM NUMBER 5, CITY MANAGER. [5. APPROVAL OF PROPOSED RATES FOR POTABLE WATER, RECYCLED WATER AND WASTEWATER SERVICES] >> ITEM NUMBER 5 IS THE APPROVAL OF PROPOSED RATES FOR PORTABLE WATER, RECYCLED WATER, AND WASTEWATER SERVICES. FOR THE PRESENTATION, WE HAVE UTILITIES DIRECTOR AMANDA FELISE AND SENIOR MANAGEMENT ANALYST SHOSHANA AGUILAR. >> BEFORE WE START, BOTH THE CITY ATTORNEY AND I HAVE SOMETHING WE HAVE TO READ. WE ARE HOLDING A PUBLIC HEARING TO CONSIDER PROPOSED RATE INCREASE FOR WATER, BOTH POTABLE AND RECYCLED AND WASTEWATER SERVICES. THIS IS THE LAST STEP IN THE PROCESS OF CONSIDERING THE PROPOSED RATE INCREASES. AT THIS TIME, I WOULD LIKE TO ASK CITY ATTORNEY TO PROVIDE A BRIEF SUMMARY OF THE LEGAL REQUIREMENTS FOR TONIGHT'S PUBLIC HEARING, CITY ATTORNEY, PLEASE. >> THANK YOU, MAYOR. THIS PUBLIC HEARING IS BEING HELD IN COMPLIANCE WITH THE PROCEDURAL REQUIREMENTS FOR ADOPTING NEW OR INCREASED WATER AND WASTEWATER RATES. THESE REQUIREMENTS MAY BE FOUND IN ARTICLE 13D, SECTION 6 OF THE CALIFORNIA CONSTITUTION AND ARE ALSO KNOWN AS PROPOSITION 218. NOTICE OF THE PUBLIC HEARING WAS MAILED TO THE RECORD OWNER OF EACH PROPERTY TO WHICH THE PROPOSED RATE INCREASES WILL APPLY, AS WELL AS TO ANY CUSTOMER OF RECORD WITHIN THE CARLSBAD MUNICIPAL WATER DISTRICT WATER SERVICE AREA OR THE CITY OF CARLSBAD WASTEWATER SERVICE AREA, WHO IS NOT A PROPERTY OWNER OF RECORD. THE NOTICE WAS MAILED AT LEAST 45 DAYS PRIOR TO THE DEADLINE FOR SUBMITTING LEGAL OBJECTIONS TO THE PROPOSED RATE INCREASES. TO ENSURE EVERYONE IS HEARD AND THE PUBLIC HEARING IS CONDUCTED IN AN ORDERLY FASHION, THE CITY COUNCIL, WHO ARE ALSO SERVING AS THE CARLSBAD MUNICIPAL WATER DISTRICT BOARD OF DIRECTORS, WILL NOT ANSWER QUESTIONS FROM THE PUBLIC DURING THE PUBLIC HEARING. ONCE THE PUBLIC TESTIMONY PORTION OF THE PUBLIC HEARING IS CLOSED, THE CITY COUNCIL MAY, PRIOR TO TAKING ACTION, REQUEST THAT STAFF ADDRESS COMMENTS AND QUESTIONS RAISED DURING THE PUBLIC TESTIMONY. WRITTEN PROTESTS MAY BE SUBMITTED AT ANY TIME BEFORE THE PUBLIC TESTIMONY PORTION OF THE PUBLIC HEARING IS CLOSED. WRITTEN PROTESTS MUST BE IN WRITING AND CONTAIN YOUR NAME AND SIGNATURE. IF YOU HAVE NOT SUBMITTED A WRITTEN PROTEST BUT WOULD LIKE TO DO SO, YOU MAY SUBMIT IT TO THE CITY CLERK ANYTIME PRIOR TO THE CLOSE OF THE PUBLIC TESTIMONY. ELECTRONIC SUBMISSIONS AND ORAL COMMENTS WILL NOT COUNT AS A VALID WRITTEN PROTEST. PUBLIC TESTIMONY WILL BE CLOSED AFTER ALL MEMBERS OF THE PUBLIC WHO SUBMITTED A REQUEST TO SPEAK ON THIS ITEM HAVE HAD AN OPPORTUNITY TO SPEAK. >> PLEASE. >> GOOD EVENING. MY NAME IS AMANDA FELISE, I'M THE UTILITIES DIRECTOR FOR THE CITY OF CARLSBAD AND THE CARLSBAD MUNICIPAL WATER DISTRICT GENERAL MANAGER. TODAY, I HAVE MISS SHOSHANA AGUILAR, OUR SENIOR MANAGEMENT ANALYST WITH ME TODAY. [NOISE] OUR PROPOSED ACTIONS ARE TO HOLD A PUBLIC HEARING. ADOPT THREE-YEAR RATES FOR WASTEWATER, WATER, AND RECYCLED WATER. TODAY'S PRESENTATION IS ABOUT THREE SEPARATE SYSTEMS, WATER, WASTEWATER, AND RECYCLED WATER. EACH OF THESE THREE SYSTEMS PROVIDE CRITICAL SERVICE FOR OUR CUSTOMERS 24 HOURS A DAY, SEVEN DAYS A WEEK. FOR A LITTLE BIT OF BACKGROUND, FOR OUR WATER SYSTEM, CMD BUYS WATER FROM THE SAN DIEGO COUNTY WATER AUTHORITY, AND IT DELIVERS THE DRINKING WATER THAT YOU USE IN YOUR HOMES AND BUSINESSES. THIS WATER MEETS EVERY PUBLIC HEALTH STANDARD. THE WASTEWATER SYSTEM IS COLLECTED FROM THE WATER THAT YOU USE IN YOUR HOMES AND YOUR BUSINESSES AND IS DELIVERED TO A REGIONAL WASTEWATER FACILITY OPERATED BY THE NCINO WASTEWATER TREATMENT PLANT. THE WATER IS TREATED, AND IT IS EITHER DISPOSED OF OR IT IS SENT TO OUR CARLSBAD WATER RECYCLED FACILITY. THE CARLSBAD WATER RECYCLED FACILITY FURTHER TREATS THE WATER TO MEET RECYCLED WATER STANDARDS AND THEN IS SET INTO A SEPARATE THIRD SYSTEM THAT DOES NOT CONNECT TO OUR DISTRIBUTION POTABLE WATER SYSTEM. THIS RECYCLED WATER IS PROVIDED TO BUSINESSES, GOLF COURSES, HOA, AND OUTDOOR AREAS FOR IRRIGATION USE ONLY. THE WATER IS A DROUGHT-PROOF WATER SUPPLY, AND IT ALLOWS US TO ONLY PURCHASE DRINKING WATER FROM THE WATER AUTHORITY. THAT WAY, WE USE RECYCLED WATER FOR IRRIGATION. >> NOW I'M GOING TO TURN IT OVER TO MISS AGUILAR TO GO THROUGH OUR WATER RATES, AND WHAT GOES INTO THEM, AND HOW WE GOT HERE TODAY. >> THANK YOU, AND GOOD EVENING. [00:35:03] SOME OF THE SLIDES THAT I HAVE MIGHT LOOK FAMILIAR, AND WERE PRESENTED WHEN YOU FIRST VOTED TO SET TODAY'S PUBLIC HEARING BACK IN FEBRUARY. THEN WE HAVE SOME NEW INFORMATION AS WELL, BUT WE WANT TO PROVIDE INFORMATION FOR EVERYONE VIEWING HERE AND AT HOME. I FIRST WANT TO START OUT WITH THE TIMELINE. WHERE HAVE WE BEEN IN THE PAST WITH RATE SETTING, WHERE ARE WE NOW, AND WHERE ARE WE HEADED? THE LAST TIME THE COUNCIL AND THE CARLSBAD MUNICIPAL WATER DISTRICT BOARD VOTED TO APPROVE RATE INCREASES WAS IN JANUARY OF 2022. AT THAT TIME, RATE INCREASES WERE APPROVED FOR THREE YEARS, AND WE HAVE IMPLEMENTED THOSE INCREASES, COLLECTING REVENUE TO FUND OUR ONGOING SERVICES, AND INVESTING IN INFRASTRUCTURE. DURING THAT TIME, WE ALSO UPDATED OUR COST OF SERVICE STUDIES TO UNDERSTAND WHAT FUTURE REVENUE NEEDS ARE. AT LAST JULY, THE SAN DIEGO COUNTY WATER AUTHORITY, OUR WATER SUPPLIER, THE BOARD VOTED TO INCREASE RATES BY 14%. THAT MEANS THAT IT COSTS US 14% MORE TO PURCHASE WATER FOR CARLSBAD CUSTOMERS. WE INCORPORATED THAT COST INTO THE RATES PRESENTED TO YOU TODAY. LIKE I SAID, IN FEBRUARY, YOU VOTED TO SET TODAY'S PUBLIC HEARING. THAT STARTED OFF OUR PROPOSITION 218 PROCESS, WHICH GOVERNS RATE SETTING IN CALIFORNIA. AS PART OF THAT PROCESS, WE HAD A ROBUST OUTREACH EFFORT THAT WENT ABOVE AND BEYOND THE REQUIREMENTS OF PROP 218. BUT PER THE REQUIREMENTS, WE DID PRINT OUT MAILERS AND SENT THEM TO ALL 30,000 CUSTOMER ACCOUNTS. THE MAILER HAD INFORMATION ABOUT HOW THE PUBLIC COULD PROTEST OR MAKE THEIR DESIRES KNOWN REGARDING THE RATES. THAT BRINGS US TO TODAY. THE GREEN HAND ON THE SCREEN ARE OUR PUBLIC HEARING. IF RATES ARE APPROVED, THEY WOULD GO INTO EFFECT STARTING IN JULY. WHAT ARE OUR RATE REQUIREMENTS? WE NEED RATE INCREASES TO ADEQUATELY FUND OUR OPERATIONS, OUR MAINTENANCE, AND CAPITAL INVESTMENTS. RATES CANNOT EXCEED THE COST TO PROVIDE SERVICE, AND WE MAKE NO PROFIT ON UTILITY RATES. LET ME GET INTO THE MEAT AND POTATOES A LITTLE BIT. PEOPLE ARE PROBABLY WONDERING WHAT WOULD THE IMPACT BE FOR OUR AVERAGE CUSTOMER? OUR MOST COMMON CUSTOMER TYPE IS A SINGLE FAMILY HOME, AND SO WE LOOKED AT WHAT'S THE AVERAGE USE? THE AVERAGE USE FOR A SINGLE FAMILY HOME IS 11 UNITS OF WATER. THE PER MONTH INCREASE, SO THE FIRST COLUMN ON THE FAR LEFT OF THE SLIDE STARTING IN JULY, IT WOULD BE ABOUT $17 FOR WATER AND $8 FOR WASTEWATER. THAT WOULD BE A 20% INCREASE OVER CURRENT RATES. WE READ EVERY SINGLE LETTER THAT WE RECEIVED FROM THE PUBLIC. EVERY SINGLE LETTER, AND ALL OF OUR RESPONSES ARE INCLUDED IN THE STAFF REPORT PACKET AND AVAILABLE ONLINE. ONE OF THE THINGS THAT WE HEARD FROM SOME OF THE LETTERS IS THAT SOME PEOPLE WANTED TO SEE THE PERCENTAGE INCREASES. FOR SOME PEOPLE, IT'S EASIER TO SEE THE DOLLAR AMOUNT, HOW THAT WILL ACTUALLY IMPACT THEIR HOUSEHOLD BUDGET, AND FOR OTHER PEOPLE, IT'S HELPFUL TO GET A SENSE OF THE PERCENTAGE IMPACT. WE INCLUDED THAT ON THE SLIDE. FROM THE FIRST INCREASE IN JULY TO THE NEXT ONE IN JANUARY OF 2026, THERE WOULD BE ANOTHER 14% INCREASE OVERALL ON AVERAGE FOR THE AVERAGE CUSTOMER, FOR SINGLE FAMILY RESIDENTIAL BILLS. THE TOTAL INCREASE PROPOSED THROUGH THE LAST INCREASE YOU WOULD BE VOTING ON TODAY WOULD BE 49% OVER THE CURRENT RATE FOR THE CURRENT AVERAGE CUSTOMER. YOU CAN SEE THE TOTAL DOLLAR FIGURE IMPACT ON THE RIGHT. RIGHT NOW, AN AVERAGE BILL IS ABOUT $125 A MONTH, BY JANUARY OF 2027, THAT WOULD BE $187 A MONTH. AGAIN, EACH CUSTOMER'S USE IS VERY DIFFERENT, AND ON OUR MAILER, WE HAVE THE PHONE NUMBER FOR OUR UTILITY BILLING DIVISION, WHICH CAN HELP PEOPLE UNDERSTAND THE IMPACTS TO THEIR INDIVIDUAL USAGE. I HAVE SOME MORE SLIDES TO PUT THESE DOLLAR FIGURES AND THESE PERCENTAGES INTO PERSPECTIVE. BEFORE THAT, I WANT TO TALK A LITTLE BIT MORE ABOUT THE PROCESS WE HAVE HERE TODAY TO SET THESE RATES. PROPOSITION 218 IS A STATE LAW THAT WAS PASSED BY THE VOTERS IN THE 1990S, AND THEN WATER AGENCIES ACROSS THE STATE FOLLOW FOR RATE SETTING. THE FIRST STEP HAPPENED HERE BACK IN FEBRUARY WHEN THE COUNCIL AND THE BOARD VOTED TO SET TODAY'S MAJORITY PROTEST PUBLIC HEARING. PER PROP 218, WE HAVE NOTIFIED CUSTOMERS AT LEAST 45 DAYS BEFORE THE HEARING. AT THE CLOSE OF TODAY'S PUBLIC HEARING, THE CITY CLERK WILL ANNOUNCE THE COUNT OF ALL OF THE PROTESTS WE RECEIVED. IF LESS THAN A MAJORITY OF OUR CUSTOMERS PROTEST THE RATES, YOU MAY VOTE ON THE PROPOSED RATES. THERE WAS A NEW PROCESS IN ADDITION TO THE REGULAR PROTEST PROCESS THAT JUST WENT INTO EFFECT IN CALIFORNIA IN JANUARY, CALLED THE OBJECTION PROCESS. THIS TABLE EXPLAINING THAT WAS INCLUDED IN THE MAILERS FOR EVERYONE. WITH THE OBJECTION PROCESS, IF SOMEONE WANTS TO CHALLENGE THE LEGALITY OF THE RATES AFTER THEY ARE PASSED, THEY WOULD FIRST HAVE HAD TO WRITE AN OBJECTION EXPLAINING THEIR ISSUES WITH THE METHODOLOGY IN OUR CASE BY APRIL 14TH. [00:40:03] WE DID RECEIVE SOME LETTERS WHERE WE WANTED TO RESPOND, THINKING THAT IT MAY BE AN OBJECTION, AND ALL OF OUR RESPONSES AGAIN ARE INCLUDED IN THE STAFF REPORT. WE WENT ABOVE AND BEYOND THE OUTREACH THAT IS REQUIRED BY PROP 218 TO MAKE SURE THAT WE REACHED OUT TO DIFFERENT CUSTOMERS IN DIFFERENT WAYS. IN ADDITION TO THE MAILERS TO ALL CUSTOMERS, WE HAD A WEBINAR FOR OUR COMMERCIAL CUSTOMERS THAT WAS RECORDED AND PUT ON OUR DEDICATED PUBLIC RATES WEB PAGE. WE ALSO PRESENTED IN PERSON AT THE CARLSBAD CHAMBER OF COMMERCE. WE HAD OUR FLIERS AT CITY FACILITIES, I ACTUALLY SAW THEM IN THE BACK OF THE ROOM HERE, AND WE HAD DIRECT OUTREACH. WE PICKED UP THE PHONE AND CALLED OUR LARGEST CUSTOMERS AND SPOKE TO THEM DIRECTLY ABOUT THE IMPACT. TODAY'S PUBLIC HEARING, OF COURSE, WAS ALSO NOTICED IN THE NEWSPAPER. NOW I WANT TO TALK SPECIFICALLY A LITTLE MORE ABOUT OUR POTABLE WATER. THESE DOLLAR FIGURES ARE THE SAME AS THE ONES YOU SAW ON THE EARLIER SLIDE JUST FOR WATER, IN PARTICULAR, FOR OUR AVERAGE CUSTOMER. AGAIN, IT REALLY VARIES ON EACH PERSON'S USAGE AND SITUATION, BUT RIGHT NOW ON AVERAGE, FOR A SINGLE FAMILY RESIDENTIAL BILL, PEOPLE ARE PAYING JUST UNDER $74 A MONTH FOR POTABLE WATER. YOU COULD SEE GO UP STARTING THIS JULY TO $91 A MONTH, AND THEN BY THE LAST RATE INCREASE IN JANUARY OF 2027, TO JUST UNDER $110 A MONTH. EVEN WITH THESE DOLLAR FIGURES AND THESE PERCENTAGES SWIRLING AROUND, AMAZINGLY, ON AVERAGE, A GALLON OF TAP WATER IS STILL JUST ABOUT A PENNY. WHERE DOES THAT MONEY GO WHEN PEOPLE PAY THEIR BILLS? WHERE IS THAT $110? HOW IS IT BROKEN DOWN? 35% OF BILLS, 35% OF OUR RATE REVENUE IS FOR OUR OWN INTERNAL COSTS. THIS FUNDS OUR ONGOING MAINTENANCE, WATER QUALITY TESTING EACH WEEK, AND INVESTMENT IN OUR INFRASTRUCTURE AS IT AGES OVER TIME. HOWEVER, 65% OF THESE RATE INCREASES AND 65% OF CUSTOMER BILLS IS DIRECTLY USED TO BUY WATER FROM THE SAN DIEGO COUNTY WATER AUTHORITY. WE'RE INTRODUCING PASS THROUGH CHARGES WITH THIS RATE STRUCTURE. THE GRAY PIE CHART, I WANT TO PROVIDE A LITTLE BIT MORE INFORMATION ABOUT THAT. THAT IS THE BREAKDOWN OF THE WATER AUTHORITY'S BUDGET. OF THE 65% OF YOUR WATER BILL WHEN YOU PAY IT, IT GOES TO THE WATER AUTHORITY. MOST OF THAT, SO ALL OF THE BLUE SLICES OF THE PIE ON THE SCREEN ARE DIRECT WATER EXPENSES THAT THE SAN DIEGO COUNTY WATER AUTHORITY HAS. YOU CAN SEE OUR BIGGEST SOURCE OF SUPPLY AND THE BIGGEST EXPENSE IS THE COLORADO RIVER. THE SECOND BIGGEST SOURCE OF EXPENSE, EXCUSE ME, IS THE CARLSBAD DESALINATION PLANT. WE ALSO GOT A LOT OF CUSTOMER QUESTIONS ABOUT THE DESALINATION PLANT, SO I WANT TO BRIEFLY SPEAK ABOUT THAT. EVEN THOUGH THE PLANT IS LOCATED IN CARLSBAD AND IT PROVIDES A LOCAL SOURCE OF WATER FROM THE OCEAN, IT IS NOT OWNED BY THE CARLSBAD MUNICIPAL WATER DISTRICT OR THE CITY. IN FACT, THE WATER AUTHORITY DOES NOT OWN IT EITHER, BUT THEY BUY WATER FROM THE PLANT AND DISTRIBUTE IT TO CARLSBAD AND THE OTHER MEMBER AGENCIES OF THE WATER AUTHORITY. IT IS ACTUALLY THE MOST EXPENSIVE WATER THAT WE HAVE. IT TAKES A LOT OF ELECTRICITY TO GET THE SALT OUT OF OCEAN WATER. THE DESALINATION PLANT IS ONE OF THE BIGGEST ELECTRIC USERS IN THE COUNTY, AND WHEN ELECTRIC RATES GO UP, THOSE COSTS FLOW THROUGH TO US. WITH ALL THESE INCREASES, WE THOUGHT HOW DO WE LOOK COMPARED TO THE REST OF THE COUNTY? WE AGAIN LOOKED AT OUR MOST COMMON CUSTOMER TYPE AND LOOKED AT OUR AVERAGE USAGE TO GET A SENSE OF COMPARISON FOR BENCHMARKING. THIS CHART SHOWS THE AVERAGE BILL FOR POTABLE WATER FOR ALL THE DIFFERENT MEMBER AGENCIES OF THE SAN DIEGO COUNTY WATER AUTHORITY. RIGHT NOW ON THE FAR LEFT IN GREEN, OUR AVERAGE BILL IS THE LOWEST IN THE ENTIRE COUNTY. EVEN WITH THE FIRST INCREASE IN JULY, OUR AVERAGE BILL WOULD BE $91 A MONTH FOR POTABLE WATER BELOW THE AVERAGE OF 114. EVEN IN THE THIRD YEAR OF INCREASES, IF APPROVED, WE WOULD BE BELOW THE 2025 AVERAGE. ONE OTHER THING I WOULD SAY IS THAT OVER THE NEXT THREE YEARS, OTHER AGENCIES WILL ALSO BE ADJUSTING THEIR RATES UP SO THAT AVERAGE LINE IS GOING TO GO UP. BUT AGAIN, EVEN WITH THE CURRENT YEAR AVERAGE, WE WILL BE BELOW THE 2025 AVERAGE, EVEN IN 2027. THE TAKEAWAY FOR ME IS THAT THERE'S INCREDIBLE VALUE FOR YOUR DOLLAR HERE IN CARLSBAD WHEN YOU PAY YOUR WATER BILL. ON TOP OF THAT, WE DIG GET QUESTIONS ABOUT PEOPLE THAT ARE STILL STRUGGLING TO PAY THEIR BILLS, [NOISE] SO I WANTED TO PROVIDE A LITTLE BIT MORE INFORMATION SINCE I WAS LAST HERE ABOUT THAT. WE PARTICIPATE IN REGIONAL PROGRAMS FOR CUSTOMER REBATES, BOTH FOR RESIDENTIAL AND COMMERCIAL. CUSTOMERS CAN GET REBATES ON WATER SAVING DEVICES, THINGS LIKE LOW FLOW TOILETS INSIDE, AND SMART IRRIGATION METERS OUTSIDE. THERE ARE ALSO FREE WATER USE REVIEWS WHERE SOMEONE CAN COME TO YOUR HOME OR YOUR BUSINESS AND MAKE SURE THAT YOU'RE USING WATER AS EFFICIENTLY AS POSSIBLE. PART OF OUR RATES ARE BASED ON HOW MUCH WATER YOU USE, SO THIS CAN HELP PEOPLE REDUCE THEIR BILLS. [00:45:03] WE ALSO HAVE A RESIDENTIAL SHUT OFF PROTECTION POLICY SO THAT WHEN SOMEONE IS AT RISK OF NOT BEING ABLE TO PAY THEIR BILLS AND HAVING THEIR WATER BE SHUT OFF, WE HAVE A SERIES OF GUIDELINES THAT OUR UTILITY BILLING DIVISION FOLLOWS TO TRY TO AVOID THAT AS MUCH AS POSSIBLE. OUR UTILITY BILLING DIVISION CAN ALSO SET UP PAYMENT PLANS AND CONNECT CUSTOMERS TO REGIONAL FINANCIAL ASSISTANCE. NOW I WANT TO BRIEFLY TALK SPECIFICALLY ABOUT OUR WASTEWATER. ON THE SCREEN, YOU HAVE THE DOLLAR VALUES FOR OUR CURRENT BILL FOR OUR SINGLE FAMILY HOMES FOR WASTEWATER, AND THE PROPOSED INCREASES. WASTEWATER IS A FLAT RATE FOR SINGLE FAMILY RESIDENTIAL. FOR COMMERCIAL CUSTOMERS, WASTEWATER IS CHARGED BASED ON HOW MUCH POTABLE WATER YOU USE. INDUSTRY-WIDE ACROSS THE COUNTRY, WE DO NOT IN GENERAL, METER WASTEWATER, AND SO THAT'S WHY WE BASE IT ON WATER USAGE FOR COMMERCIAL CUSTOMERS. ALSO, FOR SOME OF THE PEOPLE THAT HAVE NOT SEEN THE PHOTO ON THE SCREEN BEFORE, THIS IS ONE OF OUR CURRENT EMPLOYEES BEING LOWERED INTO A SEWER ACCESS HOLE TO INSPECT OUR SEWER SYSTEM. THESE RATES GO TO AN ASSET MAINTENANCE PROGRAM AND INSPECTION PROGRAM, MAKING SURE THAT WE ARE DOING EVERYTHING POSSIBLE IN A PLANNED WAY TO KEEP WASTEWATER IN THE PIPES. AGAIN, ON THE WASTEWATER SIDE, WE WANTED TO DO A COMPARISON. THIS IS THE AVERAGE BILL FOR SINGLE FAMILY HOMES FOR WASTEWATER ACROSS THE ENTIRE COUNTY. WE ARE BELOW THE AVERAGE RIGHT NOW, AND EVEN WITH THE INCREASE, WE WOULD STAY BELOW THE AVERAGE. AGAIN, COMMERCIAL CUSTOMERS ARE HARDER TO COMPARE BECAUSE COMMERCIAL USAGE HAS A LOT MORE VARIATION. BUT I THINK AGAIN, THIS EMPHASIZES THE VALUE FOR YOUR DOLLAR WHEN YOU PAY YOUR WASTEWATER BILL, AND GIVES A SENSE OF WHAT IT LOOKS LIKE IN OTHER CITIES. I HAVE ONE BRIEF SLIDE TO SPEAK ON RECYCLED WATER. THE RECYCLED WATER RATES, WE TRY TO KEEP AT 25% LOWER THAN POTABLE IRRIGATION RATES TO MAKE THIS A COMPELLING SUPPLY FOR CUSTOMERS. PART OF THE REASON THAT WE'VE BEEN ABLE TO KEEP RECYCLED WATER AFFORDABLE COMPARED TO POTABLE IS BECAUSE WE HAVE AN AGGRESSIVE AND SUCCESSFUL GRANT PROGRAM. IN RECENT YEARS, GRANT FUNDING HAS BEEN IN RECYCLED WATER. WE'RE ALWAYS LOOKING FOR GRANTS IN POTABLE AND WASTEWATER, BUT WE'VE HAD SOME SUCCESS AND THERE'S BEEN SOME OPPORTUNITY IN RECYCLED WATER. RECYCLED WATER IS A LOCAL DROUGHT PROOF SUPPLY THAT PROTECTS POTABLE WATER FOR POTABLE NEEDS. THE RATE INCREASES FOR RECYCLED WATER ARE FAIRLY MODEST AND KEEP UP WITH EXPENSES AND WITH INFLATION. NOW I'D LIKE TO PASS IT BACK TO MISS FLESSIE TO TALK ABOUT OTHER THINGS WE'VE DONE TO REDUCE OUR COSTS. >> WHAT HAS THE CITY OF CARLSBAD AND CMWD BEEN DOING TO KEEP COSTS LOW AND AUDIT THEMSELVES? EVERY TIME WE HAVE A VACANCY, WE RE-EVALUATE THE NEED OF THE POSITION AND WHAT IS REALLY NEEDED FOR OPERATIONS, AND HOW WE CAN DO THINGS MORE EFFICIENTLY AND MORE EFFECTIVELY. AS A RESULT OF THIS PROCESS, IN THE PAST TWO YEARS, WE'VE BEEN ABLE TO REDUCE STAFFING BY TWO FULL TIME POSITIONS. ANOTHER PROGRAM WE HAVE IS WE TOOK A HARD LOOK AT THE CIP PLAN. THIS YEAR, IN PARTICULAR, WE DECIDED TO TAKE A PAUSE ON SOME CIP PROJECTS AND RE-EVALUATE THE NEEDS OF THE SYSTEM AS IT RELATES TO TODAY'S LANDSCAPE. THIS MEANS WE HAVE REDUCED OUR CIP TO INCLUDE ONLY IMMEDIATE ASSET NEEDS, REPAIRS. WE ARE ALSO IN THE PROCESS OF UPDATING ALL OF OUR MASTER PLANS TO MAKE SURE WE HAVE THE MOST UP TO DATE HOUSING ELEMENT REQUIREMENTS. THE CURRENT CIP PROJECTS THAT ARE IN THE QUEUE ARE THE IMMEDIATE ONES NEEDED TO SUPPORT PROPOSED HOUSING DEVELOPMENTS. ANY FURTHER REDUCTION OF THE CIP PROGRAM COULD JEOPARDIZE OUR ABILITY TO SAFELY SERVE THE PROPOSED DEVELOPMENTS. FINALLY, THE LAST STRATEGY WE UTILIZE TO KEEP COSTS LOW IS THAT WE CURRENTLY OPERATE ON A PROACTIVE APPROACH RATHER THAN A REACTIVE APPROACH. THE PROACTIVE APPROACH ENABLES BETTER BUDGETING AND FINANCIAL FORECASTING, REDUCING UNEXPECTED REPAIRS AND REPLACEMENT COST ASSOCIATED WITH ASSET FAILURES, WHICH COULD COST UPWARDS UP TO FOUR TIMES MORE THAN PLANNED COST. REGULARLY SCHEDULED MAINTENANCE AND TIMELY REPLACEMENT MINIMIZES THE DOWNTIME, ENSURING THAT ASSETS OPERATE AT OPTIMUM PERFORMANCE. IDENTIFYING AND ADDRESSING POTENTIAL ISSUES BEFORE THEY ESCALATE MITIGATES RISK AS IT RELATES TO SAFETY, COMPLIANCE, FINES, PROPERTY DAMAGE, AND OPERATIONAL DISRUPTIONS. BOTTOM LINE, MAINTAINING CONSISTENT AND RELIABLE ASSET BASE SUPPORTS UNINTERRUPTED OPERATIONS, ENHANCING OVERALL PRODUCTIVITY AND CUSTOMER SERVICE DELIVERY, AND KEEPS COST TO A MINIMUM. [00:50:01] ONE WAY WE MONITOR OUR PROACTIVE ASSESSMENT IS THE AMOUNT OF WATER MAIN BREAKS AND SEWER SPILLS THAT OCCUR IN ONE REPORTING YEAR. FOR WATER MAIN BREAKS, ON AVERAGE, FOR A SYSTEM OUR SIZE, ABOUT 4-7 BREAKS PER HUNDRED MILES PER YEAR. WE AVERAGE 2-3 BREAKS PER HUNDRED MILES PER YEAR. FOR SEWER MAIN SPILLS, THE AVERAGE FOR A SYSTEM OF OUR SIZE WOULD BE 3-6 SPILLS PER HUNDRED MILES PER YEAR. WE AVERAGE UNDER ONE SPILL PER HUNDRED MILE PER YEAR. WHAT DOES THIS ALL MEAN? IT MEANS THAT OUR PROACTIVE APPROACH IS WORKING, AND WE CAN PROVIDE LEAN SERVICES EFFICIENTLY AND EFFECTIVELY. WHY OUR RATES CONTINUE TO BE LOWER THAN OTHERS? ANY INTERRUPTION TO THIS APPROACH COULD JEOPARDIZE THE STRATEGY, WHICH COULD LEAD TO LARGER INCREASES DOWN THE ROAD. REPAIRS AND REPLACEMENT NEEDS DO NOT GO AWAY IF RATES ARE NOT PASSED. THEY WILL CONTINUE TO DETERIORATE, WHICH MAY LEAD TO COSTLY AND POTENTIALLY DAMAGING REPAIRS. THOSE ARE THE COSTS THAT ARE EVALUATED IN OUR COST OF SERVICE STUDIES, WHICH ARE LOCATED ON OUR WEBSITE. BUT ONE COST THAT IS NOT MENTIONED OR INCLUDED IS OUR EXCEPTIONAL CUSTOMER SERVICE THAT WE PROVIDE TO OVER 100,000 CUSTOMERS. WE MAKE SURE WE CALL BACK AND PROVIDE ASSISTANCE TO OVER 1,300 SERVICE CALLS THAT WE RECEIVE EACH YEAR. DAY OR NIGHT, HOLIDAYS OR WEEKENDS, WE HAVE RESPONDED TO OVER 300 OFF DUTY CALLS. ALTHOUGH WE GUARANTEE A RESPONSE WITHIN 48 HOURS, WE OFTEN RESPOND WITHIN 12 HOURS. BUT DO NOT TAKE MY WORD FOR IT. THESE ARE SOME COMMENTS FROM CUSTOMERS THAT HAVE MENTIONED THE INCREDIBLE CUSTOMER SERVICE THAT WE PROVIDE. MR. BRYAN MUSAR IS ONE OF OUR WATER OPERATORS. THE CUSTOMER WAS HAVING SOME PRESSURE ISSUES, AND BRYAN WENT OUT TO HELP HIM RESOLVE HIS ISSUE. THIS IS THE RESPONSE TO OUR LEVEL OF SERVICE. MR. MOTAS IS PART OF OUR METER TEAM. A CUSTOMER WAS HAVING AN ISSUE WITH HIS WATER METER AND OUR TECHNICIAN WAS ABLE TO HELP MINIMIZING DOWNTIME FOR THE CUSTOMER. FINALLY, MR. RUDDEN WAS CONCERNED THAT OUR SEWER MAIN MAY HAVE BEEN LEAKING, POSSIBLY LEADING TO A SEA COAL. WE WENT OUT WITH OUR CCTV CREW TO ENSURE OUR ASSET WAS NOT COMPROMISED. WHILE WE WERE THERE, WE TOOK THE TIME TO SHOW MR. RUDDEN WHAT WE DO AND ENSURED HIM EVERYTHING WAS IN WORKING ORDER. MR. RUDDEN >> THESE ARE THE KEY COMPONENTS THAT WERE EVALUATED IN OUR COST OF SERVICE AND THAT GO INTO THE DEVELOPMENT OF OUR WATER, WASTEWATER, AND RECYCLED WATER RATES. THAT CONCLUDES OUR PRESENTATION, AND THESE ARE OUR PROPOSED RECOMMENDATIONS. MISS AGUILAR AND I ARE HERE TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE. >> COUNCIL HAVE ANY QUESTIONS? I'M SORRY. I'VE GOT A SCRIPT THAT I'M SUPPOSED TO FOLLOW, AND IT SAYS, COUNCIL QUESTIONS NOW. MR. SHIN. >> THANKS FOR THE PRESENTATION. I'M GOING TO ASK THESE QUESTIONS, JUST GET RE ANSWERED. SOME OF THEM YOU'VE ANSWERED, BUT SOMETIMES MY JAR HEAD BRAIN NEEDS A LITTLE BIT MORE EXPLANATION ON A SIMPLIFIED LEVEL. WHO CREATES THIS RATE INCREASE? DO THE TWO OF YOU? DOES AMANDA SHASHANA WORK TOGETHER AND JUST CONJURE UP A NUMBER, OR IS THIS THROUGH A PROCESS AND ENGINEERED WHERE WE GET OUR RATES FROM? >> THANK YOU FOR THE QUESTION, COUNCIL MEMBER. WE ENGAGE WITH AN EXPERT RATE CONSULTANT. THIS TIME WE USED CAROLLO ENGINEERING THROUGH OUR PUBLIC PROCUREMENT PROCESS AND WORK WITH PEOPLE THAT DO THIS FULL TIME. THE RATES ARE ALSO DEVELOPED IN COMPLIANCE WITH THE AMERICAN WATERWORKS ASSOCIATION MANUAL ON RATE SETTING AS WELL AS A LEASE STATE LAW. THERE ARE 280 PAGE COST OF SERVICE STUDIES THAT PROVIDE A LOT OF THE BACKUP AND INFORMATION IN OUR METHODOLOGY, AND THOSE WERE PART OF THE STAFF REPORT AND ON OUR WEBSITE. >> THROUGH THIS PROCESS OF HOW WE BUDGETED, JUST TO MAKE IT ALL SIMPLE AND CLEAR FOR THE PUBLIC AND OURSELVES, WE DON'T MAKE A PROFIT ON THIS? THIS IS THE MONEY THAT GOES BACK TO THE GENERAL FUND OR WHATNOT. WE'RE HOLDING THE BODY RIGHT NOW AS CARLSBAD WATER DISTRICT AND THAT REVENUE ISN'T HELD. IT'S NOT RESERVED. IT'S RESERVED TO A CERTAIN DEGREE BECAUSE WE HAVE TO UNDERSTAND WHAT'S GOING TO TAKE PLACE WITHIN THREE YEARS. >> THAT'S CORRECT. WE DO NOT MAKE A PROFIT ON THE RATES AND OUR FINANCES ARE AUDITED AS PART OF THE CITYWIDE AUDIT THAT HAPPENS EACH YEAR. THERE'S ALSO A COUNCIL APPROVED UTILITIES RESERVE POLICY. THAT HAS A MAXIMUM. IT SAYS WE CANNOT KEEP IN RESERVES OR COLLECT TOO MUCH, AND THOSE RESERVE LIMITS ARE INCORPORATED INTO OUR RATES. WE MAKE SURE THAT WE DO NOT SET RATES THAT WOULD BRING IN [00:55:01] MORE MONEY THAN LEGALLY YOU HAVE VOTED FOR US TO MAINTAIN. >> SOME OF THESE QUESTIONS ARE PEPPERED, BUT CAN YOU PULL BACK THE CHART THAT SHOWS THE WATER RATE COMPARISONS THROUGHOUT THE COUNTY? [NOISE] THERE WE GO THERE. LET'S HAVE AN UNDERSTANDING HERE RIGHT NOW. RIGHT NOW, WHAT WE'RE LOOKING AT IS THE 73.91. THAT'S WHERE WE'RE CURRENTLY. THE PROPOSAL IS GOING TO GO TO THE 91.10. THIS IS THE COUNTY PROJECTION. WE'RE BELOW COUNTY AVERAGE, SO GOOD JOB, WHATEVER WE'RE DOING RIGHT THEN AND THERE. BUT THE QUESTION THAT I HAVE IS, HAVE EVERYONE ELSE ALREADY TALKED ABOUT THEIR INCREASED RATES THROUGHOUT THE COUNTY? IS THIS AFTER THEY'RE DISCUSSING THEIR RATE INCREASES OR IS THIS JUST CURRENT, OR IS IT A PEPPER OF ALL OF IT? >> THANK YOU FOR THE QUESTION, COUNCIL MEMBER. DIFFERENT AGENCIES INCREASE THEIR RATES ON A DIFFERENT SCHEDULE, AND SO THIS IS A POINT IN TIME. WHEN WE WERE PREPARING THE STUDY, WE TOOK THE LATEST RATE INCREASES THAT WE KNEW ABOUT THAT WOULD BE ACTIVE FOR 2025, BASICALLY WHAT'S ALREADY BEEN APPROVED BY OTHER AGENCIES, AND THEN BETWEEN NOW AND 2027, THE LAST YEAR OF THE INCREASES, MANY OTHER AGENCIES WILL HAVE PROP 218 HEARINGS JUST LIKE US AND INCREASE THEIR RATES. >> THEN JUST TO REITERATE, BY THE TIME WE GET TO OUR THIRD YEAR, WE'RE STILL BELOW AVERAGE? >> WE WILL BE BELOW THE CURRENT AVERAGE OF $114. >> CURRENT AVERAGE? >> THAT'S RIGHT. OF COURSE, THE 2027 AVERAGE WILL BE EVEN HIGHER, BUT THAT'S RIGHT. >> GOT YOU. THEN WHY DO WE DO A THREE YEAR INCREASE INSTEAD OF THE ANNUAL? THE COUNTY INCREASES THEIR RATE ANNUALLY. WE GO EVERY THREE YEARS. IS THERE A REDUCTION OF COST BY DOING SOMETHING LIKE THAT? >> SIMPLY, WE DON'T HAVE THE STAFF TO PROVIDE EVERY YEAR INCREASE. IT TAKES A YEAR TO DEVELOP THESE RATES. WE WILL ALWAYS BE BEHIND THE WATER AUTHORITY. THIS JUST PROVIDES SOME CONSISTENCY FOR OUR RESIDENTS. >> GOT YOU. LET'S TALK ABOUT WHAT YOU WERE SAYING, BUT I'M GOING TO SAY IN MY TERMS. THE REASONS WHY WE NEED TO RAISE THESE RATES ARE FOR OUR CAPITAL IMPROVEMENT PROJECTS AND TO ENSURE THAT OUR MAINTENANCE IS MOVING ALONG APPROPRIATELY IN A GIVEN SCHEDULE. LIKE GROWING UP, A POP ZONED AUTO MECHANIC SHOP, AND THAT'S ALL I KNOW ON A GEARHEAD. I WOULD ALWAYS SEE VEHICLES SHOW UP AND I WOULD SAY ALL YOU NEED TO DO IS CHANGE YOUR OIL. BUT NOW I'M GOING TO CHARGE YOU EVEN MORE AND THANK YOU FOR YOUR BUSINESS. THIS IS A FUNDAMENTAL ASPECT OF WHAT IT IS THAT WE NEED TO DO. WE NEED TO MAINTAIN A VERY ADEQUATE, PROPER, EFFICIENT MAINTENANCE SCHEDULE. IF WE DON'T RAISE THE INCREASE OF THIS, WHAT THEN ENDS UP HAPPENING? DO WE JUST EAT THIS LATER IN A MORE HIGHER RATE IN THE THREE YEARS FROM NOW? >> THANK YOU, COUNCIL MEMBER, SHIN. USING YOUR CAR ANALOGY, IF YOU DON'T CHANGE YOUR OIL EVERY 5,000 MILES, SOMETHING'S GOING TO BE MORE EXPENSIVE DOWN THE ROAD. IT MAY BUY YOU TIME ONE OR TWO YEARS. BUT HOWEVER, YOUR TRANSMISSION OR SOMETHING'S GOING TO GO OUT, THAT'S GOING TO COST PROBABLY MORE THAN WHAT THE CAR IS WORTH. SAME THING GOES HERE. WE HAVE A REAL LIFE EXAMPLE. BEFORE THESE RATES AND THE 2021 RATES, WE HAD NO INCREASE IN OUR WASTEWATER RATES. BECAUSE OF THAT, DIRECTLY, THE FOLLOWING YEARS WAS A 20% INCREASE. NOW WE'RE LOOKING A LITTLE BIT MORE AT A 14% INCREASE BECAUSE WE'RE TRYING TO STEADY THAT NO INCREASE PERIOD TIME. ALL IT IS IS JUST GOING TO DELAY AND POSSIBLY EVEN BE MORE EXPENSIVE THAN IF WE WERE JUST ABLE TO REHAB SOME PIPES, GOING BACK TO WASTEWATER. REHABBING A PIPE IS PROBABLY A TENTH LESS THAN DIGGING AND REPLACING A PIPE. IF YOU LET THINGS DETERIORATE, THE PROPER SOLUTION TO THAT REPAIR MAY NOT BE AN OPTION FOR YOU ANYMORE. YOU MAY HAVE TO DO ANOTHER MORE EXPENSIVE OPTION FOR THAT REPAIR IF IT CONTINUES TO DETERIORATE AND WE'RE NOT ABLE TO CAPTURE THE APPROPRIATE REPAIR AT A COSTLY AND EFFICIENT TIME. >> LET'S TALK ABOUT THE LAST QUESTION. I'M SORRY. LET'S SWITCH TO THE DESAL PLANT. JUST CONFIRMING, THIS IS A CITY. THIS IS NOT A CITY INFRASTRUCTURE. THIS IS A COUNTY INFRASTRUCTURE USED BY THE COUNTY, AND IT'S JUST PLANTED IN THE CITY OF CARLSBAD? [01:00:01] >> CORRECT. WE DO NOT OWN OR OPERATE THE CARLSBAD DESALINATION PLANT. IT IS ACTUALLY PRIVATELY OWNED AND THE WATER AUTHORITY BUYS WATER FROM THE CARLSBAD DESALINATION PLANT. >> GOT YOU. I GET A LOT OF THAT QUESTION FROM TIME TO TIME. LAST QUESTION. THIS IS AN ASSESSMENT FOR NOW HAVING TO ADJUST FROM THE LAST THREE YEARS. LAST THREE YEARS, DO WE HAVE THE LARGEST INFLATIONARY PRESSURES SINCE THE 1970S OIL EMBARGO? >> CORRECT. THIS NOW PROVIDES TODAY'S PRICING FOR OUR CIP THAT MAYBE THREE YEARS AGO HAD THREE YEARS PRICING. IN THAT TIME, WE HAD MONUMENTAL CONSTRUCTION INFLATION. IT'S MORE THAN JUST DAY TO DAY INFLATION. WE'RE LOOKING AT CONSTRUCTION INFLATION, WHICH WAS PROBABLY IN THE MID 20S DURING THAT TIME PERIOD. WE'RE PLAYING CATCH UP. ALL OF OUR PROJECTS THAT WERE IN THE QUEUE, THEY'RE STILL THE SAME PROJECTS. IT'S JUST NOW THEY'RE COSTING MORE WITH ALL OF THE INFLATION RATES THAT GO ALONG WITH IT. >> I SEE THIS ADJUSTMENT AND IT SHOCKS ME BECAUSE IT'S SO HIGH BECAUSE WE'VE JUST BASICALLY BEEN WAITING. HAD THIS BEEN SAY ANNUAL INCREASES, WE WOULD HAVE SEEN THIS ADJUSTMENT METER THROUGH INFLATION. WE PROBABLY STILL COMPLAIN JUST LIKE THE REST OF US WANT TO COMPLAIN ABOUT INCREASED RATES, BUT WE WOULDN'T HAVE SEEN THE SHOCK BECAUSE IT'S A THREE YEAR ADJUSTMENT? >> CORRECT. WE WOULD PROBABLY BE ABLE TO ADJUST TO THE WATER AUTHORITY TOO, HAS A HIGH ADJUSTMENT RATES AS WELL RIGHT NOW. YOU CAN JUST SEE THAT THEY ARE IN DOUBLE DIGIT ADJUSTMENT, TRYING TO COURSE CORRECT THIS INFLATION RATE AS WELL. >> GOT IT. THANK YOU. THAT'S ALL I GET. >> MS. BHAT-PATEL. I THOUGHT I'D MIX IT UP A LITTLE. >> I CAN GO. >> KEEP IT INTERESTING. >> SURE. THANK YOU SO MUCH FOR THE PRESENTATION. YES, I HAVE A FEW QUESTIONS. THANKFULLY, MY COLLEAGUE ASKED A FEW THAT I HAD. IN TERMS OF WHEN WE'RE LOOKING AT THE COSTS, I KNOW YOU MENTIONED THAT 35% ARE FOR INTERNAL COSTS AND THEN 65% OF WHAT WE ARE LOOKING AT IS TO BUY THE ACTUAL WATER FROM THE SAN DIEGO COUNTY WATER AUTHORITY. I KNOW WE'VE TALKED ABOUT THAT. ALMOST BELABORED THE POINT WITH REGARDS TO THE INCREASE, AND I KNOW YOU MENTIONED IT'S A 49% INCREASE OVER TIME. I THINK THAT WAS JUST FOR THE WATER, NOT WASTEWATER. IS THAT CORRECT? >> THAT IS ACTUALLY FOR BOTH. >> IT'S FOR BOTH? >> THAT'S FOR BOTH COMBINED. >> THANK YOU. IT SOUNDS LIKE A LOT, WHEN YOU LOOK AT 49%. I KNOW WE RECEIVED SOME COMMUNICATIONS AROUND THAT. I KNOW MY COLLEAGUE ASKED ABOUT THE INFLATION PIECE. BUT JUST OVERALL, IN GENERAL, WE'VE BEEN SEEING THE COST OF DOING BUSINESS HAS GOTTEN MORE EXPENSIVE. THE COST OF WATER IS MORE EXPENSIVE THEN YES, I APPRECIATE YOU ALL MENTIONING THE COST OF CONSTRUCTION AS WELL. ALL OF THAT GETS FACTORED IN. I JUST WANTED TO CONFIRM ALL OF THAT IS FACTORED INTO WHAT WE'RE LOOKING AT IN TERMS OF RATES. >> YES. THAT ALSO INCLUDES ELECTRICITY RATES, CHEMICAL RATES, AND OTHER ITEMS THAT ARE NEEDED TO RUN OUR SYSTEM. >> I'M ASSUMING THAT ALSO INCLUDES SECURITY AND ALL OF THAT, JUST EVERYTHING IN TERMS OF PERSONNEL AND EVERYTHING ELSE THAT WE NEED TO ENSURE TO MOVE THINGS ALONG SMOOTHLY. >> CORRECT. >> I WANTED TO ALSO MENTION, I KNOW THAT YOU SAID, WE LOOKED AT HOW TO REDUCE COSTS AS WELL INTERNALLY. JUST TO RE EMPHASIZE, IT SOUNDS LIKE STAFFING WAS REDUCED BY TWO FULL TIME INDIVIDUALS, AND THEN WE ALSO REDUCED OUR CIP SPENDING. DO YOU HAPPEN TO HAVE A NUMBER? IF YOU DON'T, THAT'S OKAY. I WAS JUST CURIOUS WHAT THAT AMOUNT WAS IN TERMS OF THE REDUCED CIP SPENDING. BUT I APPRECIATE THAT WE'RE LOOKING FORWARD TO THE PROACTIVE REPLACEMENT SINCE AS YOU MENTIONED, COSTCO AND SKYROCKET. THOSE WERE MY ONLY QUESTIONS. I JUST HAVE COMMENTS AFTER THAT. THANK YOU. >> MS. BURKHOLDER. >> THANK YOU. THREE OF MY QUESTIONS WERE ANSWERED, SO THAT'S GOOD. THANK YOU. I BELIEVE IT WAS SLIDE NUMBER 7. SORRY. [01:05:05] I THINK YOU SAID THIS WAS BASED ON A SINGLE FAMILY HOME. IT SAYS IT RIGHT THERE ON THE SLIDE. MY QUESTION IS RELATIVE TO BUSINESS, FOR EXAMPLE, GOLF COURSES, RESTAURANTS. DO WE HAVE ANY SURVEYING OF THE ASSESSMENT IMPACT TO THOSE FOLKS? >> WE DO NOT, AND I CAN JUST THANK YOU FOR THE QUESTION. FOR SINGLE FAMILY HOMES, ALMOST ALL SINGLE FAMILY HOMES HAVE EITHER ONE OF TWO DIFFERENT METER SIZES. BUT FOR COMMERCIAL, SOME COMMERCIAL HAVE A TWO INCH METER, SOME COMMERCIAL HAVE A FOUR INCH METER OR BIGGER. IT'S REALLY HARD TO HAVE AN AVERAGE FOR A COMMERCIAL CUSTOMER. A COMMERCIAL CUSTOMER COULD BE A POST OFFICE, IT COULD BE A RESTAURANT THAT USES A LOT OF WATER. IT COULD BE A 250 ROOM HOTEL. THAT'S WHY WE DON'T HAVE THE SAME AVERAGES. BUT THAT'S ALSO WHY WE REACHED OUT AND CALLED OUR TOP COMMERCIAL USERS TO MAKE SURE AND ALSO DID THE OUTREACH THE CHAMBER OF COMMERCE PRESENTATION AND THE WEBINAR TO REACH TO THOSE CUSTOMERS. >> MY OTHER QUESTION IS RELATIVE TO COUNCIL MEMBER BHAT-PATEL'S QUESTION. THERE WAS A SLIDE THAT SAID 65% AND 35%. BUT I WAS GOING TO SAY LET'S DON'T GO THERE YET BECAUSE IT'S RELATIVE TO THIS ACTUAL SLIDE THAT WE'RE LOOKING AT. BUT WE'RE LOOKING AT TOTAL INCREASES OF 49% OVER THE COURSE OF THREE YEARS. MY QUESTION IS, WHAT IS THE NUMBER THAT IT TAKES TO GET TO 65%? THAT SOUNDS LIKE IT'S PRETTY NON NEGOTIABLE. THAT'S WHAT IT COSTS US. HOW DO WE GET TO 65% AND PRETEND LIKE THE 35 DOESN'T EXIST, BUT THE TOTAL INCREASE WOULD THEN DECREASE FOR OUR RESIDENTS IF WE WERE ONLY INCREASING THIS BY THE AMOUNT THAT IT COST FOR THE WATER, THE 65%? THIS IS BASICALLY A NEGOTIATION. IF WE COULD NEGOTIATE THIS DOWN BECAUSE I DON'T SEE A PARTICULAR HUGE IMPACT TO INDIVIDUALS, BUT I THINK THIS IS THE WRONG DIRECTION TO GO FOR BUSINESS. I'M TRYING TO GET TO A SOFT SPOT WHERE RESIDENTS COULD ALSO GET BEHIND THIS AND THEN THE BUSINESSES NOT BE IMPACTED QUITE AS DEEPLY. I DIDN'T HAVE THIS FOR BRIEFING. THIS IS THE WAY MY MIND WORKS. SORRY. >> THAT IS A GREAT QUESTION. THANK YOU. COUNCIL MEMBER BURKHOLDER. WE DO NOT HAVE THAT NUMBER AT THIS TIME. WE CAN TRY TO QUICKLY CALCULATE THAT FOR YOU IF YOU GIVE US A MINUTE. BUT WE DO NOT HAVE THE NUMBER, WHAT IT WOULD TAKE TO GET DOWN TO 65%, BASICALLY, JUST THE INCREASES THAT THE WATER AUTHORITY ARE PROVIDING ONTO US. >> CORRECT. PASS THROUGH. >> I WOULD JUST OFFER A COUPLE OF THINGS TO ADD ON THAT. IN OUR RATES MAILER, WE SHOWED THE BREAKDOWN OF HOW MUCH OF THE RATE INCREASE THE DOLLAR AMOUNT, NOT THE PERCENTAGE, BUT WHAT THE DOLLAR AMOUNT WOULD BE FOR CARLSBAD COSTS, AND FOR WATER AUTHORITY COSTS SO THAT ANY BUSINESS OR RESIDENT CAN LOOK AT THE DIFFERENCE. THE OTHER THING I WOULD ADD, WE'RE PROPOSING A NEW RATE STRUCTURE WHERE THE WATER AUTHORITY COSTS WOULD BE PASSED THROUGH DIRECTLY TO CUSTOMERS. WHAT THAT MEANS IS THAT FOR THE WATER AUTHORITY PORTION OF THE BILL, IF THE WATER AUTHORITY, THIS SPRING AND SUMMER VOTES ON RATE INCREASES THAT ARE LESS THAN WHAT WE ANTICIPATED, WE WILL NOT CHARGE THE FULL AMOUNT THAT IS ON THE MAILER. LEGALLY IF THIS RATE STRUCTURE IS APPROVED, WE WOULD ONLY CHARGE THE WATER AUTHORITY PORTION OF THE BILL UP TO THE RATE THAT THE WATER AUTHORITY BOARD APPROVES. THIS IS THE MAXIMUM FOR THE WATER AUTHORITY. >> I DON'T HAVE ANY MORE QUESTIONS, BUT I DO HAVE SOME THOUGHTS ON THIS IN MY COMMENTS. THANK YOU. >> MS. ACOSTA. >> THANK YOU. THANKS FOR THE PRESENTATION. COULD YOU HELP GO OVER HOW WE ARE CAPTURING THE ACTUAL COST OF SERVICE ONE MORE TIME? I KNOW WE'RE WORKING WITH CAROLLO AND PROP 218. THIS PROCESS THAT WE ARE FOLLOWING THAT WAS ESTABLISHED BY PROP 218 REQUIRES THAT PROPERTY RELATED FEES AND CHARGES, INCLUDING WATER RATES DO NOT EXCEED THE REASONABLE AND PROPORTIONAL COST OF PROVIDING THE SERVICE. WE CONTRACTED WITH THIS COMPANY AND THEY HAVE ANALYZED THIS. IT'S IN OUR PACKET, IT'S ON THE WEBSITE. BUT IF WE COULD GET A LITTLE BIT MORE I DON'T KNOW STATEMENTS AND ASSURANCE THAT THE COST OF SERVICE ANALYSIS AND THE RATE DESIGN ANALYSIS WERE DONE USING A VERY CONCRETE METHODOLOGY, [01:10:04] I THINK THAT WOULD BE HELPFUL. I DON'T KNOW IF YOU WANT TO CALL UP CAROLLO, OR IF YOU CAN ANSWER THAT. >> THANK YOU FOR THE QUESTION, COUNCIL MEMBER. WHEN WE SET ABOUT TO DO A COST OF SERVICE UPDATE, WE HAVE TO FIRST IDENTIFY ALL OF OUR REVENUE NEEDS. WE LOOK AT OUR DEMANDS, HOW MUCH WATER HAVE WE BEEN SELLING? LOOKING AT POPULATION PROJECTIONS, HOW MUCH WATER DO WE ANTICIPATE NEEDING TO BUY? ON THE WASTEWATER SIDE, WE LOOK AT BOTH OUR INTERNAL CIP NEEDS, AS WELL AS MAKING SURE THAT WE COLLECT ENOUGH REVENUE TO PAY THE ENCINA WASTEWATER AUTHORITY FOR WASTEWATER TREATMENT. WE DO NOT OPERATE OUR OWN WASTEWATER TREATMENT PLANT IN CARLSBAD, BUT CARLSBAD IS PART OF A JOINT POWERS AUTHORITY, AND WE SHARE A PORTION OF THE ENCINA WASTEWATER AUTHORITY'S OPERATING COSTS TO TREAT CARLSBAD'S WASTEWATER, BUT ALSO THEIR OWN CIP. THEIR PLANT IS ALSO ALWAYS AGING AND THEY ARE INVESTING IN REPLACING PARTS OF THEIR PLANT TO MAKE SURE THAT THEY ARE PROTECTING THE ENVIRONMENT. IN ADDITION TO LOOKING AT OUR WATER DEMANDS, WE ALSO ANTICIPATE THE BEST INFORMATION WE CAN FIND ON PROJECTIONS FOR OUR ELECTRICITY COSTS, OUR CHEMICAL COSTS, PARTS AND SUPPLIES, PVC PIPE, COPPER. ALL THE DIFFERENT PIECES OF EQUIPMENT AND SUPPLIES, AS WELL AS OUR PROFESSIONAL SERVICES, THE CONTRACTORS THAT WE PARTNER WITH FOR SPECIALIZED WORK. >> ANOTHER QUESTION. COULD YOU DESCRIBE THE CHANGE FROM THE THREE-TIER STRUCTURE TO THE TWO-TIER STRUCTURE AND WHY WE'RE DOING THAT? >> THANK YOU. ANOTHER PART OF OUR COST OF SERVICE UPDATE, WORKING WITH THE CONSULTANT, IS WE USE ALL OF OUR AMI DATA, SO OUR ADVANCED METERING INFRASTRUCTURE TECHNOLOGY, TO LOOK AT HOW WATER IS USED ON A DAILY BASIS FOR CUSTOMERS. AS PART OF THAT UPDATE, WE FOUND THAT THERE WAS NOT MUCH OF A DIFFERENCE BETWEEN TIER 2 AND TIER 3 USAGE ON AVERAGE FOR OUR SINGLE-FAMILY RESIDENTIAL CUSTOMERS. THE DATA ANALYSIS SUGGESTED THAT MAYBE LOOKING FORWARD, THERE IS NOT AS MUCH OF A CASE OR A LEGAL JUSTIFICATION TO BE MADE FOR MAINTAINING THREE TIERS. THERE WAS, BUT THE LAST TIME THAT WE HAD THIS RATE STRUCTURE APPROVED, BUT WE ALWAYS ARE UPDATING THAT WITH NEW USAGE DATA, AND SO IT NO LONGER SUPPORTS KEEPING THREE TIERS. THE OTHER THING I WOULD ADD IS THAT SINCE THE COUNCIL AND THE BOARD LAST VOTED ON RATES, THERE WERE NEW LEGAL CASES THAT WERE LOOKING AT RATE SETTING IN CALIFORNIA, FINDING THAT WE CANNOT SET RATES TO PROMOTE CONSERVATION. WE CAN ONLY SET RATES TO RECOVER THE COST AND THE INCREMENTAL COST OF PROVIDING MORE WATER TO THOSE HIGHER USE CUSTOMERS. >> GREAT. THANK YOU. FOR MY NEXT QUESTION, CAN WE GET THAT SLIDE BACK UP AGAIN, THAT HAS ALL THE OTHER DISTRICTS AND THEIR WATER RATES AND WHERE WE FALL WITH THE BAR GRAPH. THANK YOU. I FEEL LIKE EACH OF US IS ASKING QUESTIONS ABOUT THIS BECAUSE IT SEEMS REMARKABLE AND GREAT THAT CURRENTLY WE ARE BELOW EVERYBODY ELSE, BUT ALSO, OBVIOUSLY WE NEED TO CATCH UP BECAUSE WE NEED TO INVEST IN OUR INFRASTRUCTURE. WE ARE BIGGER THAN SOME OF THESE. WHAT DO WE KNOW ABOUT THE OTHER DISTRICTS RAISING THEIR RATES? I'M GUESSING MANY OF THESE DISTRICTS ARE IN THE SAME PLACE WHERE THEY HAVE THE SAME PASS-THROUGHS. THEY HAVE TO PAY MORE FOR THE SAN DIEGO COUNTY WATER AUTHORITY, WHICH IS ALSO PAYING MORE BECAUSE OF THE PASS-THROUGH THEY HAVE FROM METROPOLITAN WATER DISTRICT, WHICH PROVIDES SO MUCH OF THE WATER. THERE'S THIS DOMINO EFFECT OF PASS-THROUGH RATES. WHAT DO WE KNOW ABOUT EVERYBODY ELSE GOING UP? >> THANK YOU FOR THE QUESTION. WATER AGENCIES ARE LIMITED AND FOR HOW MANY YEARS THEY CAN SET RATE INCREASES MOVING FORWARD. I THINK IT'S FIVE YEARS, AND LIKE YOU SAID, AS THE WATER AUTHORITY INCREASES THEIR RATES, WE EXPECT TO SEE OTHER AGENCIES. OTHER AGENCIES ONLY HAVE SET THEIR RATES FOR 3-5 YEARS OUT. LIKE YOU SAID, IT'S A DOMINOES EFFECT. IT'S ALWAYS CHANGING. >> I WILL ADD TO THAT. I KNOW THAT OLIVENHAIN, THEY JUST PASSED FIVE-YEAR RATES, I'M SORRY, IN NOVEMBER, SO THEY'RE PROBABLY GOING INTO EFFECT EITHER IN JANUARY OR IN JULY, WHICH ARE PROBABLY NOT SHOWN IN HERE SINCE WE DID THIS REPORT PRIOR TO THAT. I ALSO KNOW THAT HELIX IS GETTING READY TO DO A PROP 218. THEY'RE GETTING READY TO INCREASE THEIR RATES AS WELL. I KNOW THAT SAN DIEGO JUST PASSED SOME OF THEIR RATES, AND SO THAT IS NOT REPRESENTED ON THIS AS WELL. >> GREAT. THANK YOU. THERE WAS ANOTHER SLIDE. [01:15:01] THIS ALSO REFERENCES ONE OF THE QUESTIONS MY COLLEAGUES ASKED ABOUT CUTS AND THINGS THAT WE HAVE DONE TO KEEP OUR COSTS LOW, CUTTING THE TWO STAFF POSITIONS. I WANT TO ADD ON TO THIS. WHAT ARE WE THINKING OF PROACTIVELY TO KEEP COSTS DOWN IN THE FUTURE? BECAUSE I KNOW WE'RE ALL WANTING TO MAKE SURE THAT WE ARE BEING VERY CAREFUL AND DILIGENT ABOUT THIS PROCESS AND LOOKING FORWARD. THIS PROACTIVE REPLACEMENT SEEMS LIKE A VERY IMPORTANT PROGRAM, AND WE TALKED ABOUT THAT A BIT, BUT ANYTHING ELSE THAT WE CAN DO TO REDUCE SPENDING AND KEEP COSTS DOWN. >> I WOULD ADD, ONE OF MY MAJOR ISSUES AS THE UTILITIES DIRECTOR IS TO MAKING SURE THAT THE PROPOSED DEVELOPMENT PAYS THE APPROPRIATE FEES FOR THE INFRASTRUCTURE THAT IS NEEDED TO SERVE THE PROPOSED DEVELOPMENT. RIGHT NOW, WE NEED TO UPDATE A LOT OF OUR MASTER PLANS, AND THEN I NEED TO UPDATE THE ASSOCIATED FEES ACCORDING TO THOSE MASTER PLANS. WITH THAT, THAT WOULD HELP SHARE THE BURDEN, AND SO THE WHOLE BURDEN IS NOT ON THE RATEPAYERS. MAKE SURE THE BURDEN IS ON THE DEVELOPMENTS. >> EXCELLENT. THANK YOU VERY MUCH. I DON'T HAVE ANY MORE QUESTIONS, JUST COMMENTS. >> THIS IS A PUBLIC HEARING, SO I'M OPENING PUBLIC TESTIMONY. PLEASE CALL SPEAKERS. >> ROSANNE BENTLEY, FOLLOWED BY GLEN BERNARD. >> I DON'T KNOW WHY WE EVEN BOTHER SPEAKING HERE. IT SEEMS LIKE FOR THE LAST 40 YEARS, NOT REALLY ANYTHING WE HAVE EVER DONE AS CITIZENS OF CARLSBAD, HAVE MADE ANY POSITIVE DIFFERENCE WITH WHOEVER IS SITTING UP THERE. BUT I'M HERE. THERE'D BE MORE PEOPLE HERE, I'M SURE, IF THEY WEREN'T ALSO REALLY TIRED OF THE FUTILITY. IT'S PERFECT IRONY THAT TODAY IS EARTH DAY, DON'T YOU AGREE? YOU ALL REALLY NEED TO LEARN THE ROOM, WATER PEOPLE TOO. HOW YOU ARE SO CONTINUOUSLY DISCONNECTED FROM REGULAR PEOPLE. IT MAKES NO ECONOMIC SENSE OR REASONABLE SENSE IN THIS SERIOUSLY SCREWED UP CLIMATE WE'RE IN RIGHT NOW TO RAISE RATES OF ANY SORT, ESPECIALLY NOW. LOOK AT IT ANOTHER WAY. THE CITY IS BUILDING A LOT OF LOW-INCOME PROJECTS FOR HOUSING. THERE ARE LOTS OF SENIORS AND RETIRED PEOPLE IN CARLSBAD, AS WELL AS OTHER LOW-INCOME FAMILIES ON SECTION 8, AS WE KNOW. HOW DO YOU EXPECT THIS DEMOGRAPHIC, WHO RELY ON SOME FIXED INCOME, TO PAY FOR THESE EGREGIOUS INCREASES? THIRTY MORE DOLLARS BY 2027 WHEN THEIR FIXED INCOME DOESN'T MATCH THE INCREASED COSTS. HAVE YOU THOUGHT THIS THROUGH? HAVE YOU LOOKED AT THE MACRO PICTURE? DO YOU ALL LIVE IN A BUBBLE? IF THE STOCK MARKET CONTINUES TO IMPLODE, IF SOCIAL SECURITY AND DISABILITY IS REDUCED OR COMPLETELY CUT. IF PENSIONS AND PUBLIC ASSISTANCE ARE WIPED OUT, WHO'S GOING TO BE ABLE TO AFFORD THE INCREASED RATES? I DON'T KNOW. YOU GOT AN ANSWER FOR THAT? I DON'T KNOW. HERE'S MY LETTER, WHICH I DID SUBMIT. I STRONGLY AND LOUDLY OBJECT AND PROTEST THE TONE-DEAF WATER RATE INCREASES. THIS RATE INCREASE IS BEYOND RIDICULOUS, ESPECIALLY IN THESE UNCERTAIN ECONOMIC TIMES. IT'S AN EGREGIOUS MISUSE OF POWER FOR WHATEVER REASON, TO INCREASE FINANCIAL HARDSHIP FOR THOSE OF US WHO DON'T KNOW IF WE'LL EVEN HAVE A JOB OR ARE ON TENUOUS FIXED INCOMES LIKE MYSELF. YOU NEED TO RADICALLY CORRECT THIS TYPE OF FINANCIAL EXPLOITATION BECAUSE IT'S AN ECONOMIC BURDEN. WE DO NOT NEED TO CARRY FOR YOU. I'M REFERRING TO ALL OF THIS. RATE DELIVERY, OUR WATER DELIVERY, WATER USE TIERS, AND FOR ALL THE SPECIFIED DATES, 7/1/25, 1/1/26, AND 1/1/27. COME ON. YOU REALLY NEED TO LISTEN TO THE COMMUNITY AND THE PEOPLE THAT LIVE HERE. REALLY? THANK YOU. >> GLENN ISN'T HERE. >> COMPLIMENTS TO THE COUNCIL MEMBERS THAT JUMPED ON THAT RATIO OF 65, 35. IF YOU WANT TO COMPARE IT TO SOMETHING, THINK ABOUT THE NON-PROFITS THAT WE MAKE DONATIONS TO. [01:20:01] WE ALL LIKE TO DONATE TO NONPROFITS WHERE THEY SAY THAT 10% IS RETAINED FOR ADMIN AND THE OTHER 90% GOES TO THE PEOPLE OR ANIMALS THAT WE WANT THE MONEY TO GO TO, SO 90, 10. BUT THIS 65, 35 THING, AGAIN, COMPLIMENTS TO THOSE OF YOU WHO HAVE QUESTIONED THE 35% THING. NOW, THAT CHART UP THERE WHERE WE COMPARE TO OTHER CITIES, THAT'S THE THINKING WHERE OCEANSIDE HAD A MUNICIPAL GOLF COURSE. ENCINITAS HAD A MUNICIPAL GOLF COURSE. WE HAD TERRIFIC PRIVATE COURSES ONLY IN CARLSBAD, BUT WE GOT TO COPY THEM. I REALLY DON'T CARE WHAT THE OTHER CITIES ARE PAYING FOR WATER. BUT THE AMUSING THING ABOUT THAT CHART WHERE ALL THESE DIFFERENT AGENCIES ARE COMPARED. I'M IMAGINING THAT THAT CHART MOVES FROM LOCATION TO LOCATION, CITY TO CITY, AND ALL THEY DO IS MOVE THE NAMES AROUND IN THE BOTTOM OF THE CHART AND THE FIGURES STAY THE SAME SO THAT EVERYBODY IN EVERY PLACE IS TOLD, WELL, WE'RE RIGHT IN THE MIDDLE OR WE'RE AT THE LOWER END. GOVERNMENT CAN BE VERY CREATIVE. FINALLY, ON THE IDEA OF SEWER MAIN BREAKS AND WATER MAIN BREAKS. BY COINCIDENCE, I HAD A DISCUSSION WITH MY INSURANCE COMPANY, WHICH IS USAA, ABOUT THOSE TWO THINGS BREAKING. DO I HAVE COVERAGE? NO. CAN I BUY A RIDER TO GET COVERAGE FOR THESE THINGS, WHICH COULD BE DISASTROUS? NO. NOT FROM USAA. BUT THE USAA REP ON THE PHONE TOLD ME THAT THERE ARE SOME CITIES IN AMERICA WHERE WHOEVER IS IN CHARGE OF THE WATER AND SEWAGE, THOSE CITIES, SOME OF THEM WILL SELL INSURANCE FOR THESE PROBLEMS. IN THE ABSENCE OF CORPORATE AMERICA BEING READY, WILLING, OR ABLE TO SELL ME THAT RIDER, I WOULD ACTUALLY PAY CARLSBAD CITY HALL, CARLSBAD WATER DISTRICT, SOME MONEY FOR THAT COVERAGE. IF THAT'S NOT AVAILABLE, WOULD YOU CONSIDER IT, PLEASE? BECAUSE IF I'M WILLING TO PAY, MUST BE OTHER PEOPLE THAT ARE WILLING TO PAY. THAT'S ALL. THANK YOU. >> MIKE BARRERO, FOLLOWED BY MICHAEL DRENNAN. >> I CAN'T SAY I'M SURPRISED BY THE WROTE ADMINISTRATIVE RESPONSE I RECEIVED FROM YOUR STAFF. I HAD HOPED FOR MORE EXECUTIVE CONSIDERATION. THE CITY REPORTS A PALTRY 70 OR SO VALID PROTEST LETTERS FROM ROUGHLY 24,000 ACCOUNTS. THAT'S ONLY A QUARTER OF A PERCENT. WHAT'S THAT FAILURE RIGHT THERE? DID YOU REALLY COMMUNICATE TO THE CITY RESIDENTS? DOES THAT MEAN THE REMAINING PEOPLE OF CARLSBAD GLEEFULLY APPROVE THESE OPPRESSIVE RATE INCREASES? ANY REASONABLE PERSON WOULD SAY NO. BUT YOU BELIEVE IF YOU JUST FOLLOW THE LETTER OF THE LAW, NO MATTER HOW UNREASONABLY JUST IT MIGHT BE, THAT YOU'VE SERVED YOUR DUTY TO THE COMMUNITY. ARE YOU PART OF THE RICO, OR ARE YOU A VICTIM OF IT? THE CITY OF CARLSBAD RECYCLED WATER GUIDELINES, WHILE MAY BE COMPLIANT, RECKLESSLY EMIT CRITICAL HEALTH RISK DISCLOSURES AND SAFEGUARDS. SECONDARY TREATED WASTEWATER USED FOR IRRIGATION BESIDES TOXIC INDUSTRIAL CHEMICALS, CAN HARBOR PATHOGENIC REGROWTH IN THE NUTRIENT-RICH WATER, POSING RISK TO WORKERS, RESIDENTS, AND WILDLIFE THROUGH CONTACT, INGESTION, AND BREATHING AEROSOLS. YET THE GUIDELINES YOU SENT CUSTOMERS LACK THESE DETAILS AND SO VIOLATE INFORMED CONSENT, INCLUDING WARNINGS ABOUT SIGNIFICANT HEALTH RISKS AND SYMPTOMS. THEY LACK EMERGENCY PROTOCOLS AND NEED FOR FREQUENT MICROBIOLOGICAL TESTING SINCE THAT'S NOT DONE BEYOND THE RECYCLE FACILITY. THERE ARE MILES OF PURPLE PIPE THROUGH THE CITY WITH NO CONTROLS. THIS LACK OF RESPONSIBILITY PLACES AN UNDUE BURDEN ON YOUR CUSTOMERS, PROVIDING NO PROPER TRAINING OR RESOURCES. COMPLIANCE IS NOT NECESSARILY EFFECTIVENESS. IF THIS WATER IS TRULY SAFE, THEN WHY RESTRICT IRRIGATION BETWEEN 10:00 PM AND 6:00 AM. THIS ADMISSION ALONE IS EVIDENCE IN THE PUBLIC RECORD. IT INFERS YOU CONDONE THIS POISONING OF [01:25:01] OUR NEIGHBORHOODS AS A SOLUTION TO THE MADE-UP WATER CRISIS. THIS IS A WATER CRISIS. THE PROBLEM IS BIGGER THAN JUST THE RATE INCREASE. WATER IS WEAPONIZED BY THE STATE OF CALIFORNIA. IT'S NOT MANAGED WELL, AND THE CITIES THAT JUST TAKE IT, GOD HELP CITIZENS OF THOSE CITIES. GOD HELP THEM. THE CITY NEEDS TO STAND UP FOR THE PEOPLE IN THE CITY, AND THEY NEED TO FIGHT BACK. THEY NEED TO GET ATTORNEYS TO PUSH BACK ON THE COUNTY AND THE STATE. WE SHOULDN'T BE PAYING THESE RATES. WE SHOULD SUE PEOPLE. >> BEFORE WE TAKE THE NEXT SPEAKER, LET ME READ THE FOLLOWING. WRITTEN PROTESTS MAY BE SUBMITTED ANYTIME BEFORE THE PUBLIC TESTIMONY PORTION OF THE PUBLIC HEARING IS CLOSED. WRITTEN PROTESTS MUST BE IN WRITING AND CONTAIN YOUR NAME AND SIGNATURE. IF YOU HAVE NOT SUBMITTED A WRITTEN PROTEST BUT WOULD LIKE TO DO SO, YOU MAY SUBMIT IT TO THE CITY CLERK AT ANY TIME PRIOR TO THE CLOSE OF PUBLIC TESTIMONY. ELECTRONIC SUBMISSIONS AND ORAL COMMENTS WILL NOT COUNT AS A VALID WRITTEN PROTEST. JUST ONE MOMENT. SIR, PLEASE SPEAK. >> HI. I'M MICHAEL DRENNAN. I LIVE IN CARLSBAD, AND I'M A LICENSED CIVIL ENGINEER IN CALIFORNIA. I'M DIRECTOR OF WATER RESOURCES AT A LOCAL ENGINEERING FIRM HERE IN SAN DIEGO. I'M HERE TO SPEAK IN FAVOR OF THE STAFF RECOMMENDATION. I RECOGNIZE AND ACKNOWLEDGE THAT YOU GUYS ARE IN A TOUGH POSITION TO MAKE RESPONSIBLE DECISIONS ABOUT PROBABLY NOT A VERY POPULAR IDEA. BUT I'M HERE TO SPEAK IN FAVOR BECAUSE I REPRESENT THE AMERICAN SOCIETY OF CIVIL ENGINEERS. IT'S AN ORGANIZATION OF A 150,000 ENGINEERS THROUGHOUT THE UNITED STATES. CIVIL ENGINEERS ACTUALLY TAKE AN OATH WHEN THEY BECOME AN ENGINEER TO SERVE THE PUBLIC. WE PREPARE A REPORT CARD EVERY FOUR YEARS ON THE STATE OF OUR NATION'S INFRASTRUCTURE BECAUSE WE BEGAN DOING THIS ABOUT 20 YEARS AGO BECAUSE WE SAW THAT THERE WAS ISSUES ASSOCIATED WITH THE FACT THAT INFRASTRUCTURE BUILT 50-100 YEARS AGO HERE IN OUR COUNTRY AND MUCH OF IT WAS CRUMBLING, AND A LOT OF INVESTMENTS THAT WERE NEEDED TO PROVIDE FOR THE MAINTENANCE AND OPERATION OR REPAIR WAS REALLY NOT BEING MADE. WE'RE WANTING TO BRING ATTENTION TO THE SITUATION. >> MANY OF US KNOW, AS HOMEOWNERS, LIKE YOU SAID, THAT THERE'S A NEED TO INVEST IN THE REPAIR AND MAINTENANCE OF OUR HOMES. WE MIGHT NOT HAVE THOUGHT ABOUT IT WHEN WE BOUGHT THE HOUSE, BUT WE SURE THINK ABOUT IT WHEN THINGS START TO RUN DOWN. WE RECOGNIZE THE IMPORTANCE OF PROTECTING OUR INVESTMENT. I'VE REVIEWED THE RATE STUDY PREPARED BY YOUR STAFF AND SUPPORT THE RECOMMENDED RATE INCREASES THAT'S NEEDED TO PROTECT AND CONTINUE TO INVEST IN THE WATER AND WASTEWATER INFRASTRUCTURE HERE IN CARLSBAD, AND ACKNOWLEDGE CARLSBAD FOR DOING A GREAT JOB OF ACTUALLY LOOKING AT WHAT IS IT GOING TO TAKE TO MAKE THESE INVESTMENTS NOW RATHER THAN MAKING EMERGENCY REPAIRS THAT ARE A LOT MORE COSTLY. IN CLOSING, I'D REALLY LIKE TO RE EMPHASIZE TO POINT OUT THAT IN CARLSBAD, IT'S STILL GOING TO BE LESS THAN A PENNY A GALLON TO GET CLEAN, RELIABLE WATER DELIVERED TO MY HOUSE, AND EVEN THOUGH I DON'T LIKE PAYING IT, I'M GRATEFUL TO PAY IT AND HAPPY THAT YOU GUYS ARE DOING WHAT YOU'RE DOING. THANK YOU. >> THOMAS RODDEN, FOLLOWED BY PAGE DECENO. >> MY NAME IS TOM RODDEN. I LIVE AT 2790 WILSON STREET, RIGHT OVER HERE IN THE NORTHWEST QUADRANT. I'M WRITING THIS LETTER TO EXPRESS MY UNWAVERING DISAGREEMENT AND DISGUST WITH THE PROPOSED WATER RATE INCREASES AND SEWAGE BOND INCREASES. WHEN THE DESALINATION PLANT WAS BUILT, A CITYWIDE VOTE TOOK PLACE TO APPROVE AND TO GIVE THE CITIZENS OF CARLSBAD A LOCK ON RATES NOT TO EXCEED. [01:30:04] I AM A RETIREE AND ON A FIXED INCOME. PLEASE DO NOT KILL MY TIER 1 RATES. IF ANYTHING, RAISE THE TIER 2 AND TIER 3. WHY SHOULD FAMILIES THAT HAVE PAID ATTENTION TO CONSERVATION BE PENALIZED? IF SO, WILL THE CITY PROVIDE A FINANCIAL COMPENSATION FOR WATER CATCHMENT VESSELS? IN THESE INFLATED AND UNCERTAIN TIMES, IT IS NOT A GOOD TIME TO GOUGE THE RESPONSIBLE VOTERS OF CARLSBAD. I'VE RAISED THREE CHILDREN HERE IN CARLSBAD. I'VE GOT SIX GRANDCHILDREN OUT OF THAT, AND THEY'RE ALL LIVING IN CARLSBAD. THEY CAN'T MAKE IT HERE BECAUSE LIFE IS SO BUSY RIGHT NOW. THANK YOU, MAYOR, FOR HAVING MY GRANDCHILD HERE THE OTHER DAY, SAT AT THAT DESK RIGHT THERE, AND HE'S A VERY SMART YOUNG MAN, AND I'M VERY PROUD OF HIM. BUT WITH THESE RATES GOING UP AND INFLATION GOING ON THE WAY IT IS, I DON'T THINK HE'S GOING TO HAVE A CHANCE TO LIVE IN CARLSBAD. THIS GIRL HERE WAS SAYING THERE'S 14% COST ON POTABLE WATER FROM OUR SUPPLIERS. WE'LL RAISE IT 14%. I DON'T SEE THE COST OF UTILITY. I LIVE ON WILSON. THAT'S ONE OF THE OLDEST NEIGHBORHOODS IN CARLSBAD. THE PIPES HAVE NEVER BEEN FIXED. I WAS THE ONE THAT CALLED THEM OUT BECAUSE OF A SINKHOLE, AND I POINTED IT OUT TO THEM. THEY'RE EMPLOYEES OF CARLSBAD. THEY CAN'T THROW ANYBODY UNDER THE BUS. THEY'RE VERY EASY ON HOW THEY WALK. I SHOWED THE LINE OF MY SEWER LATERAL AND WHERE THE MAIN IS IN THE STREET, AND THERE'S A SINKHOLE RIGHT THERE WHERE THE TIE-IN FOR MY LATERAL WAS. NOW, I DON'T KNOW HOW FAR ALONG BACK, BUT WE'RE RESPONSIBLE FOR THE LATERAL TO THE MAIN NOW. IT'S LIKE WHEN I BOUGHT THE HOUSE, IT WAS TO THE CLEANOUT. THEY'RE TELLING ME THAT'S GOING TO TAKE A CONTRACTOR WITH A TYPE 1 LICENSE WHICH ALLOWS THEM TO DIG INTO STREETS AND GET TRENCH PLACE AND TRAFFIC SIGNALING, AND ALL THE OTHER STUFF THAT GOES ALONG WITH IT. I'M NOT GOING TO BE ABLE TO AFFORD THAT. THEY WON'T FIX THE PROBLEM WHERE THE TIE-IN IS. >> SIR, YOUR TIME HAS EXPIRED. THANK YOU. WE HEARD YOU CLEARLY, SIR. >> PAMELA GENTILE, FOLLOWED BY TED CARR. >> HI, GOOD EVENING. MY NAME IS PAM GENTILE. LIVED IN CARLSBAD FOR SEVERAL YEARS. I WANTED TO THANK MISS AGUILAR'S OFFICE. WHEN I WROTE A LETTER OF PROTEST, HER OFFICE SENT BACK TO ME MY LETTER WITH FIVE COMMENTS AND FIVE DOCUMENTS TO SUPPORT THOSE AND TO ANSWER THE QUESTIONS THAT I HAD. I HAD ANSWERS TO THE QUESTIONS THAT I HAD THAT I RECEIVED IN THE MAIL FROM YOUR OFFICE, AND COULD GO THROUGH THOSE AT MY OWN SPEED AT HOME. THE ONLY THING THAT I WOULD ASK IS THAT WHEN WE MOVE FROM THREE TIERS TO TWO TIERS, THAT WE CONSIDER THE ONLY THING THAT WE CAN DO AS HOMEOWNERS IS MANAGE THE AMOUNT OF WATER THAT WE USE. IF THAT TIER 1 USAGE WAS NOT CAPPED AT 10 AND WAS RAISED TO 11 OR 12, IT'S NOT GOING TO SAVE US VERY MUCH MONEY, BUT AT LEAST IT GIVES YOU SOMETHING BACK FOR WHAT YOU'RE TRYING TO DO IN YOUR OWN HOMES WHEN YOU'RE TRYING TO CONSERVE. THANK YOU. >> HI ALL, MAYOR, COUNCIL MEMBERS. I APPRECIATE THE OPPORTUNITY TO SPEAK. I'M TED CARR. I LIVE IN CARLSBAD OFF OF ALGA BETWEEN RANCHO SANTA FE AND EL CAMINO REAL. I HAD SOME PREPARED MARKS THAT I WAS GOING TO HAND OVER FOR THE PROTEST PORTION, BUT I GUESS I JUST WANT TO SPEAK FROM THE HEART. THESE INCREASES HURT. I FEEL THE DRAIN, AND LOOKING AT A 50% INCREASE OVER THE NEXT THREE YEARS, TO ME, IS ABSOLUTELY STAGGERING. I LOOK THROUGH MY BILLS FROM 2015-2024, AND THEY'VE GONE UP 131%. I DON'T THINK THAT 131% OR THE 50% OF THE NEXT THREE YEARS MATCHES WHAT OUR INFLATION IS. MY BILL HAS GONE FROM $150-$347, PROJECTING ANOTHER 50%. [01:35:09] IN 2027, IT WILL BE OVER $500 A MONTH. I HEARD THE PART THE LADIES SPOKE TO ABOUT THE PIECE WITH SENDING THINGS OUT TO RESIDENTS. I'VE BEEN WAITING FOR THIS MEETING HONESTLY, SINCE PROBABLY LAST JANUARY. I DIDN'T RECEIVE ANYTHING. I WOULD HAVE LOVED TO HAVE COMMENTED. I JUST ASK AND SAY THAT THIS INCREASE IS UNSUSTAINABLE. ALMOST 50%, WELL INTO DOUBLE DIGITS EVERY YEAR. IT CAN'T MATCH. I FEEL IT EVERY MONTH. MY ASK, I GUESS, OF THE COUNCIL IS TO RECONSIDER THIS. I APPRECIATE THE COUNCIL MEMBERS THAT RAISED THE QUESTIONS THEY DID. I'D ALSO SAY THAT TALKING ABOUT THE 35%, IS THIS WHAT SOLELY SUPPORTS OUR INFRASTRUCTURE IMPROVEMENTS, OR WHAT ARE THE OTHER THINGS? ARE THERE OTHER FACTORS? WE PAY A LOT OF TAX MONEY IN THIS STATE, FOLKS. MY ASK, I GUESS OF THE COUNCIL, PLEASE, I SAY THIS FROM THE HEART, DON'T APPROVE THIS. LET'S LOOK HARDER AT THESE FIGURES. I KNOW IT AFFECTS BUSINESSES. IT HITS US AS RESIDENTS. I BUDGETED THIS WHEN I BOUGHT MY HOUSE, I LOOKED AT WHAT THE AVERAGE BILLS HAD BEEN FOR THE LAST 10 YEARS. TO BE UP TO $500 IN THREE YEARS, I CAN'T IMAGINE THAT SOME OF US COULD ACTUALLY NEED TO SELL OUR HOUSES BECAUSE WE CAN'T AFFORD TO PAY THAT KIND OF THING. IF YOU ALL COULD JUST CONSIDER IT, LET'S TAKE A HARDER LOOK AT THIS. I'M SURE THERE'S INCREASED NEEDS, BUT BOY, THIS HURTS. THANKS FOR THE OPPORTUNITY TO SPEAK. APPRECIATE IT. >> STEPHEN KOCH. >> HI, EVERYBODY. I'M GOING TO BE A LITTLE BIT DIFFERENT. I'D LIKE TO JUST ASK YOU TO LET THAT STRESS ROLL OFF THE BACK. START WITH A SMILE AND SAY, I COME HERE AS A PROUD RESIDENT OF CARLSBAD. I'VE LIVED HERE FOR 25 YEARS. I'VE DONE SOME RESEARCH ON THE BOARD. I KNOW YOUR DEDICATION, MR. BLACKBURN, TO THE CITY. I FEEL THE DEDICATION OF THIS COUNCIL, AND I KNOW YOU'RE PROUD AS WE ARE TO REPRESENT US. TECHNOLOGY HAS ADVANCED SO MUCH, KEVIN. WE DON'T CHANGE OUR MILEAGE EVERY 3,000; IT'S 10,000 NOW. I'VE GOT TO IMAGINE THAT SOME OF THE TECHNOLOGY WE'VE INVESTED IN IS GOING TO BENEFIT US FOR COSTS. AS PRICES CONTINUE TO RISE, WHAT BENEFITS ARE WE GETTING OUT OF WHAT WE'VE INVESTED IN? WHO BROKERED THE DEAL FOR POSEIDON? WE HAVE IT IN OUR CITY. DO WE GET SOMETHING OUT OF IT? DO WE BENEFIT FROM HAVING IT? DO WE TRANSPORT IT ALL THE WAY TO SAN DIEGO COUNTY WATER AND THEN SEND IT BACK? WHERE'S THE ADVANTAGE TO OUR CITY? I WOULD ASK YOU TO HAVE THAT SAME PRIDE THAT I KNOW THAT ALL OF YOU REPRESENT AND LOOK AT REPRESENTING THE PEOPLE OF THIS CITY, THE PEOPLE THAT ARE ON FIXED INCOMES. MY SON IS A PITCHER IN HIGH SCHOOL HERE, REPRESENTS THE CITY. HE IS SO PROUD OF THE CITY. WE LIVE HERE BECAUSE IT IS ONE OF THE SAFEST PLACES. THE MOST AMENITIES, OUR CITY CONTINUES TO GIVE. WE LOVE THIS PLACE. WE WOULD ASK YOU TO PLEASE REPRESENT US. LOOK FOR A DIFFERENT WAY TO ACCOMPLISH THE GOAL. FIND THAT TECHNOLOGY, FIND THAT PATH. DON'T GIVE UP ON US. WHAT WOULD IT BE LIKE IF IT WAS THE OTHER WAY AROUND, WHERE YOU ONLY HAD TO PASS IT IF YOU GOT THE VOTES IN THE MAIL, VERSUS IF YOU DID NOT? WOULD YOU HAVE THE PEOPLE TO SUPPORT THIS? MAYBE IF YOU ARE BENEFITING FROM ENGINEERING OR CONSTRUCTION OR SOME OTHER THE WAY TO BENEFIT FROM THE PROGRAM, BUT IF YOU'RE THE COMMON CITIZEN, YOU PROBABLY CAN'T AFFORD IT. I LIVE ON THREE-QUARTERS OF AN ACRE, PRETTY LARGE HERE IN CARLSBAD, BUT I GOT SLOPE. IF IT COMES RIGHT DOWN TO THE COST, I'M GOING TO CHOOSE FOOD VERSUS WATER. WHAT'S IT GOING TO BE LIKE WHEN OUR ENVIRONMENT ALL TURNS TO BROWN BECAUSE PEOPLE CAN'T AFFORD TO PAY? I DON'T HAVE A HOMEOWNERS ASSOCIATION. I PAY TO KEEP MINE GREEN. I WOULD JUST ASK YOU PLEASE TO SHOW THE PRIDE THAT WE KNOW YOU HAVE IN OUR CITY. [01:40:05] VOTE FOR THE PEOPLE, VOTE FOR US. >> THERE ARE NO MORE SPEAKERS. >> BEFORE I CLOSE THE PUBLIC TESTIMONY, I'D LIKE TO PROVIDE AN OPPORTUNITY FOR ANYONE WHO WOULD LIKE TO SUBMIT OR WITHDRAW A WRITTEN PROTEST TO DO SO NOW. ONCE PUBLIC TESTIMONY IS CLOSED, NO ADDITIONAL WRITTEN PROTESTS MAY BE ACCEPTED. I DON'T SEE ANYBODY COMING UP WITH ANY ADDITIONAL PROTESTS. THE PUBLIC TESTIMONY IS NOW CLOSED, AND WE'RE GOING TO TAKE A 10-MINUTE BREAK. WE'RE GOING TO RECONVENE AT 10 MINUTES TO 7:00. WE'RE GOING TO RECONVENE OUR MEETING. DO ANY OF THE COUNCIL MEMBERS HAVE ANY ADDITIONAL QUESTIONS FOR STAFF? I DO. ONE OF THE SPEAKERS BROUGHT UP A POINT THAT I HADN'T REALLY THOUGHT ABOUT. WE'D LIKE TO KEEP EVERYBODY IN TIER 1. THEY'RE SAVING WATER, AND THEY'RE PAYING LESS IN TIER 1. BUT THAT WOULD ALSO BE THE GROUP OF FOLKS WHO MIGHT BE ON FIXED INCOME OR LOWER INCOME. IS IT POSSIBLE IF WE ASKED YOU TO GO BACK AND RE-FIGURE IT THAT WE ALLOW LESS OF AN INCREASE IN TIER 1 AND MORE OF AN INCREASE IN THE HIGHER TIERS TO OFFSET THOSE COSTS? IT WOULD ENCOURAGE SAVING WATER, BUT IT WOULD ALSO SAVE AN OPPORTUNITY TO SAVE FOR THE PEOPLE WHO ARE ON FIXED INCOME? >> THANK YOU, MAYOR BLACKBURN. THAT IS MORE OF A LEGAL QUESTION RATHER THAN A COST OF SERVICE, AND SO I'M GOING TO DEFER TO OUR CITY ATTORNEY. >> THANK YOU, MAYOR. WE HAVE IN THE AUDIENCE OUR PUBLIC FINANCE COUNSEL [INAUDIBLE] FROM BEST BEST & KRIEGER, AND I'D LIKE TO INVITE HIM TO THE PODIUM TO RESPOND TO THE QUESTION. >> THANK YOU VERY MUCH. GOOD EVENING, MEMBERS OF THE CITY COUNCIL AND MEMBERS OF THE PUBLIC. THE WAY THAT THE RATES ARE SET UP IS A ZERO-SUM GAME. AS YOU POINTED OUT, IF WE RAISE THE TIER WIDTH FOR THE LOWER TIER, THEN WE MAKE IT MORE EXPENSIVE IN THE HIGHER TIER. THE THING WITH PROP 218 IS THAT IF WE'RE GOING TO HAVE TIERED RATES, THE COST OF SERVICE WITHIN EACH TIER HAS TO BE PROPORTIONAL. WE HAVE TO BE ABLE IN THE RATE STUDY TO SHOW THAT THE RATE IN TIER 1 REFLECTS THE COST OF SERVICE FOR TIER 1 WATER, AND THE RATE IN TIER 2 REFLECTS THE COST OF SERVICE FOR TIER 2 WATER. IN OTHER WORDS, IF YOU'RE GOING TO EXPAND THE TIER WIDTH, IT'S GOING TO HAVE AN IMPACT ON THOSE HIGHER TIERS, AND WE HAVE TO MAKE SURE THERE'S A COST BASIS FOR THAT AS OPPOSED TO, FOR EXAMPLE, ENSURING THAT THERE IS AFFORDABLE RATES. THIS IS SOMETHING THAT THE COURTS HAVE COME DOWN PRETTY HARD AGAINST AS OF LATE. THERE WAS A RECENT COURT DECISION LAST YEAR IMPACTING THE OTAY WATER DISTRICT IN WHICH THE COURT SPECIFICALLY SAID THAT YOU HAVE TO SET TIERS BASED ONLY ON THE COSTS ASSOCIATED WITH THOSE TIERS, AND YOU CANNOT LOOK AT ANY NON-COST OBJECTIVES TO ACHIEVE WITHIN THE RATE SETTING. THE ONE THING I WOULD OFFER IS THAT IF YOU WOULD LIKE TO FIND A WAY TO BENEFIT THE LOWER TIER, THE ONLY WAY TO DO THAT WITHOUT GOING OUT AND DOING A NEW ANALYSIS BASED ON NEW FACTORS IS TO LOOK AT YOUR OTHER SOURCES OF REVENUE. THAT WOULD BE YOUR UNRESTRICTED SOURCES, YOUR PROPERTY TAX, REVENUE, THINGS LIKE THAT, AS A WAY TO SUBSIDIZE THE LOWER TIER. BUT TO DO IT THROUGH THE RATES COULD CREATE ISSUES UNDER PROP 218. >> IS THIS A STATE LAW? >> YES. IT'S IN THE CONSTITUTION. >> YOU TOLD ME THAT IF YOU RAISE IT FOR THE TIER 2, YOU HAVE TO RAISE IT FOR TIER 1. WHAT IF WE JUST EXTENDED TIER 1 TO BE WHERE THEY CAN USE MORE GALLONS AT THE TIER 1 PRICE? IS THAT OKAY TO DO? >> SURE. I'M NOT SAYING THAT IT'S NOT OKAY TO DO, BUT THE ISSUE THAT WOULD COME UP IS THAT THE TIER WIDTHS ARE ALSO PART OF THE WHOLE COST OF SERVICE ANALYSIS. IT'S BASED ON LOOKING AT THE CITY'S AMI DATA, LOOKING AT THE DIFFERENT DEMAND PATTERNS AND SO FORTH TO JUSTIFY HOW MUCH WATER COSTS WITHIN THAT TIER. IF YOU EXTEND THE TIER WIDTH, YOU'RE SAYING THAT THERE'S MORE WATER THAT COSTS THAT SAME AMOUNT, WHICH PUTS MORE COSTS UNDER THOSE HIGHER TIERS. I THINK IT WOULD CREATE THE SAME PROBLEM. THE OTHER ISSUE IS IF YOU EXTEND THE TIER WIDTH FOR TIER 1 BUT YOU DON'T TOUCH THE RATE IN TIER 2, IT COULD CREATE ANOTHER ISSUE UNDER PROP 218, WHICH GOES TO PROPORTIONALITY. THE OTHER PIECE OF PROP 218 IS EVERYBODY CAN ONLY PAY WHAT THEIR PROPORTIONAL SHARE OF THE COST IS. IF WE CREATE THIS BENEFIT FOR TIER 1, AND WE DON'T IMPACT THE RATE IN TIER 2, [01:45:02] IT COULD CREATE A SITUATION WHICH WE'RE NOT GETTING THE SAME AMOUNT OF FUNDING THAT WE WOULD HAVE OTHERWISE GOTTEN. IT COULD IMPACT WHAT TIER 2 WAS PAYING FOR, THEY'RE NOT GOING TO BE GETTING BECAUSE WE'RE NOT GOING TO HAVE THE MONEY TO PAY FOR THAT NECESSARILY, BECAUSE WE'RE GETTING LESS REVENUE SINCE TIER 2 STARTS LATER. >> MAYBE I'M STEPPING OUT OF LINE A LITTLE BIT HERE. WE HAVE A STATE WHO SAYS THEY WANT TO TAKE CARE OF THE PEOPLE WHO NEED HELP THE MOST, BUT THEN THEY MAKE A LAW LIKE THIS THAT SAYS YOU CAN'T HELP THE PEOPLE WHO NEED IT THE MOST. AM I UNDERSTANDING THAT CORRECTLY? >> YOU ARE UNDERSTANDING THAT CORRECTLY, MAYOR, UNFORTUNATELY, PROP 218 WAS A VOTER INITIATIVE. IT WAS SOMETHING PUT TOGETHER BY THE CALIFORNIA VOTERS, IT WAS VOTED ON BACK IN 1996. I DON'T KNOW THAT THESE IMPACTS OF PROP 218 WERE NECESSARILY THE INTENTIONS WHEN THIS WAS PUT INTO LAW, THIS IS JUST THE WAY THAT THE COURTS HAVE COME DOWN. THERE'S THREE MAJOR CASES, TWO OF WHICH ARE HERE IN SAN DIEGO COUNTY, UNFORTUNATELY, THAT HAVE MADE IT REALLY DIFFICULT TO DO ANYTHING TO HELP WITH AFFORDABILITY, WITH CONSERVATION THROUGH RATE SETTING IN AND OF ITSELF. I WISH I HAD BETTER NEWS FOR YOU, I'M SORRY. >> WELL, THANK YOU. THE BEARER OF BAD NEWS. BEFORE YOU SIT DOWN, BEFORE I ASK MY NEXT QUESTION, DOES ANYBODY HAVE ANY QUESTIONS FOR THIS ATTORNEY? THANK YOU, SIR. >> YOU'RE WELCOME. >> THANK YOU FOR THE INFORMATION. IT WASN'T WHAT I WANTED TO HEAR, BUT THANK YOU FOR THE INFORMATION. LET'S TALK A LITTLE BIT ABOUT, SOME OF THE SPEAKERS TALKED ABOUT, WHAT IF WE JUST SAY NO, AND TAKE THE MONEY FROM SOMETHING ELSE, OUR GENERAL FUND, OR FROM SOMEWHERE ELSE FROM OUR TAXES? I CALL IT THE COLOR OF MONEY BECAUSE THAT'S WHAT THEY CALL IT IN THE CITIZEN'S ACADEMY, BUT CAN YOU EXPLAIN BRIEFLY ABOUT HOW THE ONLY MONEY THAT CAN BE SPENT ON WATER IS THE MONEY THAT'S COLLECTED FOR WATER? >> YES. THANK YOU, MAYOR BLACKBURN. >> WILL YOU GO CLOSER TO THE MICROPHONE, PLEASE? >> THANK YOU, MAYOR BLACKBURN, COUNCIL MEMBERS. ACCORDING TO 218, AND THE REASON WHY 218 WAS PASSED TO ENSURE THAT RATE MONEY IS NOT SPENT ANYWHERE ELSE. SO THE WATER RATE MONEY WILL GO INTO THE WATER INFRASTRUCTURE. SAME FOR THE WASTEWATER RATE MONEY WILL GO INTO THE WASTEWATER INFRASTRUCTURE. THOSE TWO LINES DO NOT BLUR WITH ONE ANOTHER, AND NEITHER DOES THE RECYCLED WATER MONEY. RECYCLED WATER MONEY GOES STRAIGHT INTO THE RECYCLED INFRASTRUCTURE THAT IS NEEDED. EACH ONE OF THESE RATES SUPPORT THE SYSTEMS THAT CORRESPOND TO EACH ONE. >> ESSENTIALLY, THEY'RE IN DIFFERENT BANK ACCOUNTS? >> CORRECT. >> IF ONE OF THEM COMES UP SHORT, CAN THEY TAKE THE MONEY OUT OF THE GENERAL FUND? >> WE ARE ALLOWED TO BORROW AND PAY BACK, BUT NOT TAKE. >> IF WE SAID NO TO PRICE INCREASES AND WE NEEDED THE MONEY IN THE WATER DISTRICT, WE COULDN'T TRANSFER MONEY OUT OF OUR GENERAL FUND TO PAY FOR IT, WE COULD JUST LOAN IT, BUT IT HAS TO BE PAID BACK EVENTUALLY? >> CORRECT. WE WOULD PROBABLY RUN OUR RESERVES DRY FIRST, BEFORE THAT WERE TO HAPPEN. >> THANK YOU. ANY QUESTIONS FROM COUNCIL? AT THIS POINT, I'M GOING TO ASK THE CITY CLERK TO REPORT OUT ON THE RESULTS OF THE TABULATION OF THE WRITTEN PROTESTS. >> THANK YOU, MAYOR. THERE ARE 30,519 ACCOUNTS, INCLUDING BOTH POTABLE AND RECYCLED WATER THAT WILL BE SUBJECT TO THE CARLSBAD MUNICIPAL WATER DISTRICT'S PROPOSED WATER RATE INCREASES. ONLY ONE PROTEST MAY BE SUBMITTED PER PARCEL. MAJORITY PROTEST WOULD REQUIRE PROTESTS TO BE RECEIVED ON BEHALF OF AT LEAST 15,260 PARCELS. THE CARLSBAD MUNICIPAL WATER DISTRICT RECEIVED 102 WRITTEN PROTESTS TO THE PROPOSED WATER RATE INCREASES. THERE IS NOT A MAJORITY PROTEST FOR THE PROPOSED WATER INCREASE RATES. THERE ARE 24,140 ACCOUNTS THAT WILL BE SUBJECT TO THE CITY OF CARLSBAD'S PROPOSED WASTEWATER RATE INCREASES. ONLY ONE PROTEST MAY BE SUBMITTED PER PARCEL. A MAJORITY PROTEST WILL REQUIRE PROTESTS TO BE RECEIVED ON BEHALF OF AT LEAST 12,071 PARCELS. THE CITY OF CARLSBAD RECEIVED 61 WRITTEN PROTESTS TO THE PROPOSED WASTEWATER RATE INCREASES. THERE IS NOT A MAJORITY PROTEST FOR THE PROPOSED WASTEWATER RATE INCREASES. >> SINCE THERE'S NOT A MAJORITY PROTEST TO THE PROPOSED WATER AND WASTEWATER RATE INCREASES, WE MAY CONSIDER WHETHER TO APPROVE THE PROPOSED INCREASES, [01:50:04] AND THIS IS THE OPPORTUNITY FOR COUNCIL DELIBERATIONS AND COMMENTS. YOU WANT TO START WITH YOU, MR. SHIN? >> YEAH, THIS IS MORE TOWARDS THE PUBLIC. FIRST, THANK YOU FOR ALL PUBLIC CONCERNS, COMMENTS, PROTESTING. THIS IS THE WAY IT SHOULD BE, AND I BELIEVE IN THE WAY THAT IT'S WORKING AS A PROCESS. FOR THOSE THAT ARE FRUSTRATED, THIS IS YOUR OPPORTUNITY TO REACH OUT TO YOUR CONSTITUENTS THROUGHOUT YOUR NEIGHBORHOODS, AND SAY WHAT YOUR DEMANDS ARE. I SHARE THE FRUSTRATIONS WITH YOU GUYS, AND I'M GOING TO SPEAK JUST HOW KEVIN IS. I WAS SO LUCKY IN 2019 TO SIGN A PARTNERSHIP AGREEMENT WITH THE HOTEL TO BUILD OUT A RESTAURANT IN 2020. THAT'S WHO KEVIN IS. BUILT OUT A RESTAURANT 2020, COVID TOOK PLACE, AND THEN AT THE END OF THAT YEAR, I SNAPPED MY NECK IN THE FIRE SERVICE, AND I BECAME PUT ON DISABILITY MYSELF. SO I'M RETIRED, I'M ON FIXED INCOME. I SHARE YOU GUYS' FRUSTRATIONS BECAUSE WHEN I SEE INFLATIONARY PRESSURES TAKE PLACE, I'M NOT CATCHING UP WITH IT. I'M CATCHING UP WITH THE 2% COLLAR THAT I'M PROVIDED ANNUALLY. WHEN YOU GUYS SAY THAT, IT'S HITTING ME TO THE CORE AS WELL. I TAKE THESE RATE INCREASES VERY SERIOUSLY. I'M A ECON GEEK, AND I'M A BUSINESS GEEK. I LOVE THE NUMBERS, I LOVE TO SEE HOW IT GOES. I WANT TO TRY TO SQUEEZE A NICKEL OUT OF A PENNY, IT'S JUST THE WAY I AM. MY PARENTS ARE IMMIGRANT SMALL BUSINESS OWNERS, AND I LOOKED AS HARD AS I COULD. I HAD MEETINGS WITH AMANDA, WE TOURED EVERY SINGLE FACILITY. I LOOK DOWN THE BOOKS, AND I LOOKED THROUGH THE AUDITS IN THE PAST, AND I GET WHAT'S GOING ON. A COUPLE OF THINGS UNDER CONTEXT. WE LIVE IN A DESERT, AND THEN WE HAVE TO UNDERSTAND THAT FIRST AND FOREMOST, AND THAT'S THE BIGGEST DIFFICULTY ABOUT PROCURING WATER INTO OUR AREA. IT'S ALWAYS NOT GOING TO BE CHEAP, AND THERE'S ALSO WATER RIGHTS THAT ARE ALWAYS BE IN VERY BORING MEETINGS THAT NONE OF US EVER ATTENDED OR EVEN VIEWED, BUT ARE GETTING FOUGHT FOR IN ORDER FOR US TO BE ABLE TO EVEN JUST GET WATER AT CERTAIN RATES TO BEGIN WITH. LET'S PUT THAT UNDER CONTEXT. I WILL SAY TO OUR DEPARTMENT AND AMANDA, SHOSHANA, WE WERE TALKING ABOUT THIS IN REGARDS TO MAINTENANCE FEES. I EXPECT A HIGH STANDARD OF MAINTENANCE. I SEE WHAT HAPPENS THROUGHOUT THE COURSE OF MY CAREERS, WHERE IT'S DELAYED AND DEFERRED, AND THEN IT BECOMES REPAIRS, AND REPAIRS ARE EXTREMELY EXPENSIVE. YOU WANT TO TAKE A PIPE THAT LASTS FOR 10 YEARS, AND YOU WANT THAT THING TO STRETCH TO 15. THAT'S ONLY WAY TO DO IT IS THROUGH APPROPRIATE AND EFFECTIVE GOOD MAINTENANCE SCHEDULES. I HOPE WE NEVER SAY, LET'S TRY TO GIVE BACK TO THE RESIDENTS BY NOT DOING MAINTENANCE. I'M JUST GOING TO HOLD THAT AS A STANDARD. THE RATES THAT YOU GUYS SAW UP THERE FOR A LOT, YOU MIGHT WANT TO SAY THAT IT WAS MIXED AND MATCHED, OR WHATNOT, AND WHAT HAVE YOU, I WILL SAY THAT THOSE NUMBERS ARE PRETTY ACCURATE WHEN WE'RE COMPARING THAT WITH THE COUNTY. AS A BUSINESS OWNER, RIGHT NOW I'M LOOKING TO GO BACK AND INVEST. I CAN'T STAY ON THIS FIXED INCOME, SO I'M SEEING WHAT'S PENCILING OUT RIGHT NOW. WHEN YOU'RE LOOKING FOR A BUSINESS, EVEN DEBATING WHICH CITY YOU'RE GOING TO DO YOUR BUSINESS IN, YOU'RE PENCILING EVERYTHING DOWN. WHEN I'M LOOKING AT THOSE RATES, THOSE ARE A FACTOR TOO. THE FACT THAT WE'RE SO COMPETITIVE IN THIS, IS AN ADVANTAGE FOR US. EVEN THOUGH WE DON'T WANT TO HAVE THE INCREASED RATES, WE'RE DOING WHAT WE CAN TO BE ABLE TO CREATE A COMPETITIVE ADVANTAGE TO THIS PROCESS. IT ACTUALLY CREATES AN ECONOMIC VITALITY FOR US. IF WE'RE COMPETITIVE WITH OUR UTILITY RATES, COMPARED TO THE COUNTY, THEN THERE ARE FACILITIES AND INDUSTRIES THAT ARE GOING TO WANT TO DO BUSINESS IN THE CITY OF CARLSBAD, AND THEN YOU THINK ABOUT PROPERTY TAX, AND YOU THINK ABOUT SALES TAX, AND THAT REVENUE WE GET BACK AS A CITY. THAT'S WHAT CREATES A VITALITY THROUGH OUR SERVICES. EVEN THOUGH WE'RE SEEING A PLUS IN RATES, YOU JUST HAVE TO UNDERSTAND THAT WE'RE LOOKING AT THE COMPETITIVE ANALYSIS THROUGH THAT. ALL MEMBERS, ALL OF YOU HAVE AN OPPORTUNITY TO LOOK INSIDE OF OUR WEBSITES, AND ASK OUR DEPARTMENT HEADS FOR ALL AUDITS THAT HAVE BEEN TAKING PLACE AND DRILL DOWN ON THEM. SOME OF YOU ARE GOING TO BE BETTER AT DOING IT THAN ME, AND I ENCOURAGE YOU TO FIND THOSE PEOPLE WHO ARE OUT THERE, THE FORMER CPAS, PREVIOUS MUNICIPALITY DIRECTORS, AND ASK THEM, ARE WE DOING IT RIGHT OR WRONG? I DON'T KNOW EVERYTHING. I'M UP HERE JUST LIKE YOU TRYING TO UNDERSTAND EVERYTHING, AND WE LOOK FOR EXPERTS TO BE ABLE TO PROVIDE THIS FEEDBACK, AND THEN ALSO ASK FOR THIRD PARTY AUDITS TO REINFORCE WHAT IT IS TAKING PLACE. THESE INCREASES OF RATES REMINDED [01:55:03] ME WHAT TOOK PLACE WHEN I HAD MY RESTAURANT AND THE HOTEL. IF YOU THINK ABOUT WATER USAGE RATES, OUR HOTEL'S WATER BILL WHEN COVID FIRST TOOK PLACE WAS ABOUT $35,000 A MONTH. THEN IT'S SPIKED TO OVER $50,000. THAT'S WHY WHEN YOU GUYS GO TO HOTELS, YOU SEE, WE'RE NOT GOING TO WASH YOUR TOWELS, WE'RE NOT GOING TO DO ANYTHING UNLESS YOU ASK. THAT'S WHAT ENDED UP HAPPENING, WE HAD TO CONSERVE LIKE CRAZY. THIS IS JUST A PART OF THE REALITY, WHAT ENDED UP HAPPENING IS THAT THESE RATES WENT UP NOW, YOU HAVEN'T SEEN IT IN THE LAST THREE YEARS. IN THE CITY OF OCEANSIDE, I SAW IT FROM MY BUSINESS AS IT WAS INCREASING. IT WAS AS FRUSTRATING AS YOU GUYS ARE DEALING WITH IT RIGHT NOW, BUT YOU GUYS ARE DEALING WITH THREE YEARS AFTER. I JUST SAW IT INCREMENTALLY PER YEAR. IT GOT TO THE POINT WHERE IT DIDN'T PENCIL OUT TO STAY IN THE RESTAURANT, AND MY EQUITY STAKE WENT BACK TO THE HOTEL IF THAT MAKES SENSE. THAT FRUSTRATION I FEEL COMPLETELY. THIS IS WHAT I'M ACTUALLY NERVOUS ABOUT. WHAT I'M ACTUALLY NERVOUS ABOUT IS THAT RIGHT NOW WE'RE IN A FEDERAL POLICY STATE RIGHT NOW WITH TARIFFS, WHICH IS AN INFLATIONARY PERIOD YET AGAIN, THAT IS GOING TO TAKE PLACE IF NOTHING CHANGES RIGHT NOW, AND THAT IS WHY FORWARD GUIDANCE IN PUBLICLY TRADED COMPANIES, AND RIGHT NOW WITH BUDGETS THAT ARE HAPPENING IN MUNICIPALITIES AND IN ALL THESE DISTRICTS, THERE'S ZERO FORWARD GUIDANCE BECAUSE WE DON'T KNOW WHAT'S ABOUT TO TAKE PLACE SIX MONTHS FROM NOW, ONE YEAR FROM NOW, THREE YEARS FROM NOW WHEN THEY COME BACK. ALL IT'S SAYING RIGHT NOW IS THINGS ARE GOING TO GET EVEN MORE EXPENSIVE. HOLDING THE RATES AS THEY ARE RIGHT NOW DOESN'T SEEM LOGICAL, BECAUSE I'M SCARED RIGHT NOW IS GOING TO BE BEYOND. WHEN THEY COME BACK, YOU GUYS ARE GOING TO BE 10 TIMES MORE MATH POSSIBLY, BECAUSE YOU'RE GOING TO SAY, WHY IS IT EVEN MORE THAN PROJECTED WITHIN THE BUDGET? THE ANSWER IS BECAUSE WE COULDN'T FIGURE OUT THE PROJECTION OF THE BUDGET. THREE YEARS FROM NOW, I WILL HOPE I CAN PLAY THIS THING ALL OVER AGAIN AND SAY, HEY, WE COULDN'T FORECAST ANYTHING BECAUSE WE DIDN'T KNOW VISION AHEAD. I'M SUPPORTING THE RATE INCREASE. I WOULD LOVE TO TRY TO FIND A WAY TO NOT BE ABLE TO DO IT, BUT IT'S NOT JUST BECAUSE OF THE INCREASE THAT THEY'RE SAYING, IT'S BECAUSE I FEEL LIKE IT'S ACTUALLY GOING TO BE HIGHER THAN IT'S ACTUALLY GOING TO BE THREE YEARS FROM NOW UNLESS THERE'S A DEFLATIONARY PRESSURE THAT TAKES PLACE WITHIN OUR ECONOMY. I'M JUST GOING TO LEAVE IT AT THAT. I KNOW IT'S LONG WAIT, SORRY. >> MS. BURKHOLDER. >> THANK YOU, MAYOR. I UNDERSTAND THAT THIS CONSIDERATION OF RATE INCREASES OCCURS EVERY THREE YEARS, AND THIS IS NOT THE BEST OF TIMING, WE CAN ALL AGREE ON THAT FOR YOU, GIRLS. LADIES, THANK YOU SO MUCH FOR EVERYTHING THAT YOU DID TO PREPARE, I BELIEVE WHOLEHEARTEDLY THAT THIS WILL HAVE A DISPROPORTIONATE IMPACT ON BUSINESSES, ON FOLKS THAT ARE IN THEIR FIXED INCOMES, ON SENIORS, BUSINESSES LIKE 350 PLUS RESTAURANTS THAT ARE IN DISTRICT 1 ALONE. I BELIEVE THAT WITH THE EXAMPLE THAT YOU ALL GAVE OF THE RELATIVELY LOW MAIN BREAKS AND THINGS LIKE THAT, WE HAVE DONE A GOOD JOB IN PREPARATION, AND THAT PREVENTATIVE MAINTENANCE. I THINK WE'RE GOING TO HAVE TO DO MORE WITH LESS, PERHAPS THAT IS A BIT OF DEFERRED MAINTENANCE. WE CAN'T NEGOTIATE ON THE PERCENTAGE RATES OF JUST PAYING FOR THE WATER, AND THEN FIGURING OUT A LOWER PERCENTAGE TO EQUAL THAT 100% THAT WE NEED TO GET TO FOR THE RESIDENTS. I'M NOT UNREASONABLE, I JUST CANNOT SUPPORT THIS AS IT WAS PRESENTED TONIGHT. THANK YOU. >> MS. ACOSTA. >> THANK YOU. I AM SO GRATEFUL TO YOU ALL FOR MAKING THE PRESENTATION TODAY, AND TO THE COMMUNITY FOLKS WHO SHARED THEIR THOUGHTS AND CONCERNS, I AM VERY CONCERNED ABOUT AFFORDABILITY. ONE OF THE THINGS THAT WE TALK ABOUT THE MOST IS MAKING SURE THAT THE COST OF LIVING IN CARLSBAD IS NOT GOING THROUGH THE ROOF, AND IT IS INCREDIBLY EXPENSIVE TO LIVE HERE. I AM ALSO REALLY CONCERNED ABOUT OUR FAMILIES, OUR YOUNG PEOPLE STARTING OUT, OUR FOLKS ON FIXED INCOME, SO THANK YOU FOR SPEAKING UP AND SHARING YOUR CONCERNS. I AM EQUALLY CONCERNED. I ALSO ECHO THE COMMENTS MADE BY COUNCIL MEMBER SHIN ABOUT THE MACRO ECONOMY, AND WHAT'S HAPPENING OUT THERE. THERE ARE ALL KINDS OF FACTORS THAT ARE INCREASING COSTS. WE TALKED LAST WEEK AT OUR COUNCIL MEETING ABOUT HOUSING COSTS, AND THE LACK OF HOUSING SUPPLY, AND INCREASE IN POPULATION, AND NOT HAVING ENOUGH HOUSING. THAT IS ONE FACTOR IN YOUR PAYCHECK THAT CONTRIBUTES TO YOUR COST OF LIVING, [02:00:05] IS HOW MUCH YOU HAVE TO PAY TO ACTUALLY LIVE HERE. BUT THEN YOU'VE GOT YOUR UTILITIES, YOU'VE GOT YOUR ELECTRICITY, YOUR WATER, YOU'VE GOT ALL THE OTHER COSTS OF LIVING IN A COMMUNITY. YOU WANT TO MAKE SURE THAT YOU'VE GOT POLICE, AND FIRE, AND GREAT SCHOOLS, AND LUCKILY WE HAVE ALL OF THOSE WHICH MAKE CARLSBAD STILL A VERY DESIRABLE PLACE TO LIVE, EVEN WITH THE EXPENSE. I WORRY THAT COSTS WILL ONLY CONTINUE TO GO UP, AND FOR THE UTILITIES AND FOR THIS PROCESS, THE PROP 218 PROCESS, WHAT WE'RE TALKING ABOUT, I ASK QUESTIONS ABOUT THE COST OF SERVICE BECAUSE I REALIZE THAT WE CANNOT MAKE A PROFIT. NOW I HAVE PEOPLE COME TO ME AND SAY, WHY CAN'T GOVERNMENT OPERATE MORE LIKE BUSINESS? I GET FRUSTRATED. I WENT TO BUSINESS SCHOOL, LET'S TALK ABOUT THIS. I'M A BUSINESS OWNER FOR 15 YEARS, LET'S TALK ABOUT THIS. BECAUSE BUSINESSES ARE THERE TO MAKE PROFIT, GOVERNMENT ISN'T. GOVERNMENT IS THERE TO PROVIDE A SERVICE FOR THE PUBLIC GOOD, AND THAT'S WHAT THIS COST OF SERVICE STUDY WAS ABOUT. IT WAS ABOUT DETERMINING THE ACTUAL COST, INCLUDING THE COST OF MAINTENANCE AND SOME OF THE PROACTIVE PROJECTIONS THAT WE KNOW THAT WE NEED TO TAKE A LOOK AT, AND DETERMINING WHAT THE ACTUAL COSTS ARE. IT SAYS OVER AND OVER AGAIN IN OUR STAFF REPORT, NEITHER THE CITY NOR THE CMWD MAKES A PROFIT ON UTILITY RATES, THESE ARE ACTUAL COSTS, I WORRY ABOUT ALL THE OTHER COSTS GOING UP. THOSE ARE ACTUAL COSTS. THOSE ARE THE COSTS OF FOOD, TALK ABOUT RESTAURANTS. I OFTEN SHARE THE EXAMPLE OF MY FAVORITE SANDWICH, DOUBLING. A $10 SANDWICH IS NOW $20, LITERALLY, AT ONE OF MY FAVORITE PLACES IN CARLSBAD, AND I JUST CAN'T PAY IT ANYMORE. I COOK MORE AT HOME. YOU HAVE TO DO THINGS THAT YOU CAN FIT WITHIN YOUR BUDGET. SO TAKING A LOOK AT WHAT WE CAN DO TO CUT DOWN ON WHAT WE CAN CONTROL OF THE OPERATIONAL COSTS, WHAT WE CAN DO TO LOOK AT INNOVATION, AT TECHNOLOGY, THAT'S ALL GOING TO BE REALLY IMPORTANT BECAUSE I DO BELIEVE IN THE NEXT THREE YEARS WHEN WE LOOK AT THESE RATES AGAIN, I WORRY THAT THEY'RE GOING TO KEEP GOING UP. THE MACROECONOMIC SITUATION THAT WE'RE IN IS VERY CONCERNING. LOOKING AT WHAT'S HAPPENING OUT THERE WITH CONSTRUCTION INFLATION, THAT WAS SOMETHING THAT MS. FLESSIE MENTIONED EARLIER, AND I REALLY APPRECIATE THE COMMENTS ABOUT OVERALL LOOKING AT THE FUTURE, AND WHAT OUR UTILITIES ARE GOING TO HAVE TO FACE IN THE FUTURE, EVEN WITH NO PROFIT AND PURE COST CAPTURE. >> LUCKILY, WITH THESE INCREASES WE ARE STILL LOOKING AT LESS THAN A PENNY A GALLON, SO THANK YOU FOR THE FOLKS WHO COMMENTED ON THAT. WE ARE LOOKING AT CLEAN, RELIABLE DRINKING WATER EVERY TIME YOU TURN ON THE TAP, AND YOU CAN EXPECT THAT CLEAR GOOD TASTING WATER. I DON'T KNOW IF YOU'VE EVER LIVED IN ANOTHER PLACE OR TRAVEL TO ANOTHER COUNTRY WHERE YOU CANNOT DRINK THAT WATER, YOU HAVE TO HAVE BOTTLED WATER. YOU MIGHT GET SICK OR A STOMACH BUG IF YOU DRINK THEIR WATER, OR EVEN IN A BIG CITY, A BIG METROPOLIS IN THIS COUNTRY. YOU CAN TASTE THE WATER DOESN'T TASTE GOOD. IT MAY MEET THE LEVEL OF SAFE DRINKING WATER, BUT IT DOESN'T TASTE GOOD. IN CARLSBAD, WE'VE GOT GREAT WATER. OUR WATER IS ALWAYS RELIABLY CLEAN DRINKING WATER THAT TASTES GOOD, AND IT'S LESS THAN ALMOST EVERY OTHER WATER DISTRICT IN THE SAN DIEGO COUNTY AREA AS WE SAW ON THAT BAR CHART THAT WE KEPT REFERENCING. ALTHOUGH I'M SUPER FRUSTRATED AND I'M VERY CONCERNED AND I'M ESPECIALLY WORRIED ABOUT THE FUTURE, I AM GOING TO VOTE FOR THESE INCREASES. I THINK THAT WE HAVE TO CONTINUE TO MAINTAIN AND PAY THE ACTUAL COST OF THE WATER THAT WE ARE DELIVERING. I DON'T THINK WE CAN DO DEFERRED MAINTENANCE, I THINK IT WILL COST US MORE IN THE END. IF WE DO THAT JUST LIKE THE EXAMPLES THAT WE SHARED ABOUT DEFERRING MAINTENANCE ON YOUR CAR OR ON YOUR HOUSE, WHEN YOU GET YOUR HOUSE AND YOU START GETTING A HOLE OR A LEAKY ROOF, YOU HAVE TO PATCH IT IMMEDIATELY AND TAKE CARE OF BUSINESS. OTHERWISE, IT WILL ONLY GET WORSE AND COST A LOT MORE IN THE LONG RUN. I WILL SUPPORT THIS, BUT I'M SUPER CONCERNED. THANK YOU. >> MS. BHAT-PATEL. >> THANK YOU. THANKS AGAIN FOR THE PRESENTATION AND THANK YOU TO THE RESIDENTS WHO ARE STILL HERE TONIGHT. I KNOW IT'S A LATE HOUR, SO JUST WANT TO APPRECIATE YOUR WILLINGNESS TO BE HERE. I'VE BEEN HERE 30+ YEARS. I LOOK YOUNG, BUT [LAUGHTER] I'VE DEFINITELY BEEN HERE, AND MY FAMILY, WE HAVE THREE GENERATIONS HERE IN THE CITY. FOR ME, I'VE SEEN DEFINITELY THE INCREASE IN COST WHILE LIVING HERE. IT'S SOMETHING THAT IMPACTS MY FAMILY ON A DAY-TO-DAY. EVEN WITH THE WATER COSTS, I HAVE TO SAY I DEFINITELY LOOK AT OUR WATER BILL, AND I'M LIKE, I KNOW WE'RE ONE OF THE LOWEST IN THE REGION, BUT IT'S STILL SHOCKING. [02:05:06] HAVING TO LIVE HERE IN THE CITY AND SEE THAT COST OF LIVING GOING UP FOR EVERYTHING INCLUDING OUR WATER. I KNOW THIS WILL IMPACT US AS WELL. I JUST WANT YOU ALL TO KNOW THAT IT'S GOING TO IMPACT MY FAMILY AS WELL ON A DAY-TO-DAY. IT'S SOMETHING THAT I KNOW THAT OUR TEAM, I WANTED TO THANK THEM, THEY HAVE THE UTMOST INTEGRITY, I JUST WANTED TO SAY THAT, AND THEY HAVE SO MUCH PASSION FOR OUR COMMUNITY. I THINK THEY TRY REALLY HARD TO MAKE SURE THEY'RE DOING EVERYTHING THEY CAN TO BE MINDFUL OF WHAT WE'RE PUTTING OUT TO THE COMMUNITY IN TERMS OF THE SERVICES WE'RE PROVIDING AND MAKING SURE THAT COSTS ARE LOW. I KNOW IT DOESN'T SEEM LIKE IT RIGHT NOW, AND IT IS CHALLENGING. IT'S A CHALLENGING TIME. I THINK WE'RE LIVING IN A VERY CHALLENGING TIME. I THINK JUST TRYING TO NAVIGATE ALL OF THE DIFFERENT THINGS THAT ARE HAPPENING FROM THAT PARTICULAR PERSPECTIVE, I KNOW THIS WILL IMPACT MANY OF THE FOLKS WE ALL CARE ABOUT. OF COURSE, THE COMMUNITY BUSINESSES, OUR SENIORS, OUR FIXED INCOME FOLKS, AND ACTUALLY YOUNG FAMILIES LIKE MYSELF AS WELL. I THINK ONE OF THE THINGS THAT I ALSO WANTED TO JUST RE-EMPHASIZE, WHICH I KNOW MY FELLOW COLLEAGUES HAVE SAID, IS THE PIECE THAT WE DON'T MAKE A PROFIT. I KNOW SOMETIMES IT'S HARD WHEN THESE THINGS HAPPEN, TO FEEL LIKE MAYBE WE'RE DOING IT FOR THE CITY OR FOR THE ORGANIZATION, BUT I THINK IT'S REALLY JUST TO ENSURE THAT WE CAN CONTINUE TO PROVIDE THOSE LEVEL OF SERVICES THAT WE ALREADY HAVE IN THE PAST. I KNOW WHEN YOU LIVE HERE IN THE CITY OF CARLSBAD, I KNOW I EXPECT A CERTAIN QUALITY OF SERVICE PROVIDED TO MYSELF. I HAVE TO SAY IN THE PAST, I HAVE ALSO BEEN A CUSTOMER WHO HAS CALLED IN AND RECEIVED A CALL BACK AND NO, THEY DID NOT KNOW WHO I WAS, BUT THEY DID CALL ME BACK WITHIN 12 HOURS, WHICH WAS AMAZING. THANK YOU FOR SHARING THAT. I THINK ONE OF THE THINGS I WANT TO ALSO REEMPHASIZE IS IT WILL BE BENEFICIAL FOR US TO BE FORWARD THINKING. I KNOW WE'RE TALKING ABOUT PROACTIVE MEASURES TO ENSURE THAT WE CAN CONTINUE TO BE ONE OF THE LOWEST BELOW AVERAGE IN TERMS OF THE REST OF THE COUNTY. LESS THAN A PENNY PER GALLON IS WILD TO ME STILL. I THINK FOR US, ESPECIALLY AS POLICYMAKERS, WHATEVER YOU CAN DO TO UTILIZE US IN TERMS OF ADVOCACY WHENEVER WE'RE TALKING ABOUT THIS. I KNOW WE HAVE FOLKS ON DIFFERENT BOARDS AND EVERYTHING AND SO THERE ARE WAYS THAT WE CAN CONTINUE TO ADVOCATE FOR OUR RESIDENTS. OF COURSE, AS WE HEAR FROM FOLKS, WE'RE DOING WHAT WE CAN TO ENSURE THAT. THIS IS JUST TO UNFORTUNATELY KEEP UP WITH THE TIMES. NOT EXCITED ABOUT IT BECAUSE AGAIN, THERE WILL BE A PERSONAL IMPACT. I KNOW THERE'S GOING TO BE AN IMPACT ON FOLKS THROUGHOUT MY COMMUNITY. I JUST WANTED TO SAY THANK YOU TO THOSE OF YOU THAT ARE HERE, AND PLEASE CONTINUE TO GET IN TOUCH WITH US. WE'RE DEFINITELY TRYING. I THINK THIS IS JUST AN EXAMPLE OF A LOT OF DIFFERENT VARIABLES GOING ON AT THE SAME TIME. THANK YOU. >> THIS IS JUST ANOTHER ONE OF THOSE EXAMPLES OF THE STATE TAKING AWAY LOCAL CONTROL, AND THE HYPOCRISY OF THEM TO SAY THAT THEY WANT TO HELP PEOPLE WHO ARE, I DON'T WANT TO SAY POOR, BUT PEOPLE WHO LIVE ON FIXED INCOME OR LOW INCOME, AND THEN TO TAKE AWAY THOSE OPTIONS FROM INDIVIDUAL CITIES TO EXERCISE THEIR LOCAL CONTROL IS VERY FRUSTRATING. BUT WITH THAT SAID, I ALSO DON'T WANT TO BE ON THE NEWS LIKE CITY OF SAN DIEGO CONSTANTLY IS WITH BROKEN PIPES, FLOODED BUSINESSES, AND THINGS LIKE THAT. TAKING EVERYTHING INTO CONSIDERATION AND BEING TOLD THAT I CAN'T MAKE THE ADJUSTMENTS I'D LIKE TO MAKE, I'M ALSO GOING TO SUPPORT TONIGHT'S RECOMMENDATIONS. I NEED A MOTION, PLEASE. >> MOVE BOTH RESOLUTIONS AND THIS AGENDA ITEM. >> SECOND. >> PLEASE VOTE. PASSES 4:01, NOTING MS. BURKHOLDER'S COMMENTS. THANK YOU. ITEM NUMBER 6, CITY MANAGER. [6. UPDATE ON THE STATUS OF THE INFORMATION TECHNOLOGY CORE SYSTEMS MODERNIZATION] >> THANK YOU. ITEM NUMBER 6 IS AN UPDATE ON THE STATUS OF THE INFORMATION TECHNOLOGY CORE SYSTEMS MODERNIZATION. FOR THE PRESENTATION, WE HAVE OUR INFORMATION TECHNOLOGY MANAGER, DOUG KAPPEL, SENIOR IT PROJECT MANAGER, RACHEL MULLER, AND JOINING THEM AS FINANCE DIRECTOR, ZACH KORACH >> THANK YOU, MR. CITY MANAGER. GOOD EVENING, MAYOR, COUNCIL MEMBERS. I AM DOUG KAPPEL, THE IT ENTERPRISE APPLICATIONS MANAGER. I WILL BE PRESENTING OUR UPDATE TODAY WITH OUR FINANCE DIRECTOR, ZACH KORACH, AND OUR SENIOR IT PROJECT MANAGER, RACHEL MULLER. [02:10:02] THE PURPOSE OF OUR PRESENTATION TODAY IS TO SHARE OUR PLAN TO ADDRESS OUR CITY'S AGING TECHNOLOGY INFRASTRUCTURE, WHICH WE HAVE BEEN PLANNING FOR, AND OVER THE PAST SEVERAL YEARS, HAVE BEEN SETTING MONEY ASIDE FOR FROM THE TECHNOLOGY INVESTMENT CAPITAL FUND. THE PROPOSED ACTION FOR TODAY'S PRESENTATION IS TO RECEIVE AN INFORMATIONAL REPORT ON THE INFORMATION TECHNOLOGY CORE SYSTEM MODERNIZATION PROJECT, WHICH WILL BE REFERRED TO AS CSM. AS PART OF TONIGHT'S PRESENTATION, I WILL BE PROVIDING AN OVERVIEW OF THE CURRENT STATE OF OUR CITY'S IT SOFTWARE SYSTEMS, FOLLOWED BY AN OVERVIEW OF REGIONAL IT TRENDS. I'LL ALSO REVIEW THE APPROACH THE CITY HAS TAKEN TO PLAN FOR CSM BOTH STRATEGICALLY AND FINANCIALLY. NEXT, ZACH WILL PROVIDE A STATUS UPDATE ON THE HEALTH OF THE TECHNOLOGY CAPITAL INVESTMENT FUND, WHICH, IF APPROVED BY CITY COUNCIL, WILL BE USED TO PAY FOR CSM. FINALLY, RACHEL WILL BE CLOSING OUT THE PRESENTATION WITH AN OVERVIEW OF THE PROPOSED PROJECT AND PROJECT SCHEDULE AS WELL AS NEXT STEPS. TODAY, CITY STAFF USE OVER SEVEN DIFFERENT SOFTWARE APPLICATIONS TO MANAGE CRITICAL ADMINISTRATIVE OPERATIONS THAT SUPPORT FINANCE, HUMAN RESOURCES, PAYROLL, TIME-KEEPING, PART-TIME SCHEDULING, UTILITY BILLING, AND CASHIERING. THESE SYSTEMS WERE ALL ORIGINALLY IMPLEMENTED BETWEEN 1997 AND 2010, AND DESPITE UPDATES, UPGRADES, AND ONGOING MAINTENANCE, ARE OFTEN UNRELIABLE AND CONTAIN SOFTWARE DEFECTS. MORE IMPORTANTLY, THESE SYSTEMS ARE NOT ABLE TO MEET THE CURRENT BUSINESS NEEDS OF THE CITY AND DO NOT MEET TECHNOLOGY BEST PRACTICES. KEEPING THESE SYSTEMS RUNNING MEANS INVESTING IN ANTIQUATED TECHNOLOGY THAT REQUIRES CONSIDERABLE RESOURCES TO KEEP UP AND RUNNING AND PERPETUATES THE USE OF INEFFICIENT MANUAL PROCESSES. TO ADDRESS THIS SITUATION AND THE NEED TO MODERNIZE OUR SOFTWARE TECHNOLOGY INFRASTRUCTURE, CITY STAFF HAVE BEEN WORKING DILIGENTLY ON CSM. STAFF IS RECOMMENDING THAT WE REPLACE OUR EXISTING CORE ADMINISTRATIVE SYSTEMS WITH A NEW MODERN TECHNOLOGY SUITE OVER A PERIOD OF 18 MONTHS. THE INDUSTRY TREND IS TO REPLACE CORE ADMINISTRATIVE SYSTEMS WITH A MODERN TECHNOLOGY PLATFORM, OFTEN REFERRED TO AS AN ERP OR ENTERPRISE RESOURCE PLANNING SYSTEM. IN FACT, REGIONALLY, THIS IS ALSO A TREND WITH OUR NEIGHBORING JURISDICTIONS. BASED ON OUTREACH TO OTHER LOCAL AGENCIES IN SAN DIEGO COUNTY, WE KNOW THAT MOST HAVE EITHER ALREADY IMPLEMENTED A CITYWIDE PLATFORM OR ARE CURRENTLY IN THE PROCESS OF SELECTING AND IMPLEMENTING ONE. CARLSBAD HAS RECOGNIZED THE NEED TO ADDRESS OUR AGING TECHNOLOGY INFRASTRUCTURE AND HAVE BEEN PLANNING FOR IT FROM BOTH A STRATEGIC AND FINANCIAL PERSPECTIVE OVER THE PAST FIVE YEARS. IN 2020, CITY COUNCIL APPROVED THE CONNECTED CARLSBAD ROADMAP, WHICH INCLUDES A GOAL TO UPGRADE, REPLACE, OR RETIRE SOFTWARE APPLICATIONS, AND A GOAL TO EVALUATE THE TRANSITION TO AN ERP. LATER IN 2021, CITY COUNCIL APPROVED ADMIN ORDER 89, THE STRATEGIC DIGITAL TRANSFORMATION INVESTMENT PROGRAM, SDTIP. THIS PROGRAM SUPPORTS THE PLANNING AND APPROVAL OF TECHNOLOGY PROJECTS FROM AN ENTERPRISE PERSPECTIVE, SIMILAR TO THE PROGRAM WE USE TO APPROVE PHYSICAL INFRASTRUCTURE PROJECTS LIKE PAVEMENTS AND SIDEWALKS. IN 2022, THE CITY COUNCIL INCLUDED CSM IN THE FIVE-YEAR STRATEGIC PLAN AS A PRIORITY PROJECT TO SUPPORT OPERATIONAL EXCELLENCE AND PHYSICAL HEALTH. THE PROJECT HAS BEEN IN THE WORKS FOR SEVERAL YEARS DUE TO THE COVID PANDEMIC, OTHER IT PROJECTS, SUCH AS THE DIGITAL INFORMATION NETWORK, AND STAFF DILIGENCE IN ENSURING THE SOLUTIONS WE'LL BE IMPLEMENTING TRULY ARE THE BEST SOLUTIONS FOR THE CITY'S EXISTING AND FUTURE NEEDS. CONCURRENTLY, CITY COUNCIL HAS ALSO CONTINUED TO SET ASIDE MONEY IN THE TECHNOLOGY CAPITAL INVESTMENT FUND OVER THE PAST SEVERAL YEARS TO PREPARE FOR THE COST ASSOCIATED WITH CSM. I WILL NOW TURN THE PRESENTATION OVER TO ZACH WHO WILL PROVIDE AN UPDATE ON THE HEALTH OF THE TECHNOLOGY CAPITAL INVESTMENT FUND, WHICH WILL BE USED TO PAY FOR CSM IF APPROVED BY CITY COUNCIL. >> THANK YOU, MR. KAPPEL. REGARDING THE TECHNOLOGY INVESTMENT FUND AND ITS FISCAL STATUS, THE CITY COUNCIL ESTABLISHES A FIVE-YEAR PLAN FOR INVESTMENT IN TECHNOLOGY AS PART OF THE ANNUAL BUDGET PROCESS. WE REFER TO THIS AS THE STRATEGIC DIGITAL TRANSFORMATION INVESTMENT PROGRAM OR THE SDTIP. IN ADDITION, THE CITY COUNCIL HAS STRATEGICALLY PLANNED FOR LARGE INVESTMENTS IN TECHNOLOGY IMPROVEMENT, AS WELL AS MODERNIZATION BY ESTABLISHING THE TECHNOLOGY CAPITAL INVESTMENT FUND. THE CITY COUNCIL HAS ALSO ADOPTED CITY COUNCIL POLICY NUMBER 91, [02:15:03] WHICH STRIVES TO SET ASIDE 6% OF ESTIMATED GENERAL FUND REVENUES FOR FUTURE CAPITAL AND DIGITAL PROJECTS AS PART OF THE ANNUAL BUDGET PROCESS. THIS TECHNOLOGY CAPITAL FUND SUPPORTS LONG-TERM INVESTMENTS IN THE CITY'S DIGITAL INFRASTRUCTURE, SIMILARLY TO HOW WE PLAN FOR AND INVEST IN THE CITY'S PHYSICAL INFRASTRUCTURE. THE CSM PROJECT HAS ALREADY BEEN PLANNED FOR AND FUNDED ACCORDINGLY. THE CSM PROJECT WILL REQUIRE A ONE-TIME INVESTMENT OF $10 MILLION. NOW, WHILE ALL OF THE FUNDING HAS BEEN MOVED TO THE TECHNOLOGY CAPITAL FUND, 5.4 MILLION OF THAT $10 MILLION HAS ALREADY BEEN APPROPRIATED BY THE CITY COUNCIL IN PREVIOUS BUDGET CYCLES. THE ADDITIONAL 4.6 MILLION, AGAIN, ALREADY IN THE TECHNOLOGY FUND, WILL BE REQUESTED AS PART OF THE SDTIP BUDGET PROCESS OVER THE NEXT TWO FISCAL YEARS. THE ONE-TIME INVESTMENT INCLUDES THE COST OF NEW SOFTWARE SUBSCRIPTIONS, PROFESSIONAL SERVICES, OPTION FOR TEMPORARY SUPPORT RESOURCES THAT WILL ENABLE THE CITY TO PROVIDE THE CURRENT LEVELS OF SERVICE WHILE STAFF CARRY OUT AND COMPLETE THE PROJECT. HERE WE HAVE A LOOK AT THE FIVE-YEAR FUNDING PROJECTIONS FOR THE TECHNOLOGY INVESTMENT CAPITAL FUND. IT SHOWS THE AMOUNT OF ANNUAL TRANSFERS THAT ARE MADE FROM THE GENERAL FUND IN ACCORDANCE WITH COUNCIL POLICY NUMBER 91, THE ESTIMATED PROJECT APPROPRIATIONS OVER THE FIVE-YEAR PERIOD, AS WELL AS THE ENDING AVAILABLE BALANCE IN EACH OF THE RESPECTIVE FISCAL YEARS. AS I MENTIONED, THE $10 MILLION HAS ALREADY BEEN SET ASIDE IN THIS FUND, AND 5.4 MILLION HAS BEEN APPROPRIATED IN PREVIOUS YEARS. WHEN WE LOOK AT THE PROJECT APPROPRIATIONS IN YEAR 1, IN YEAR 2, WE CAN SEE THAT THE REMAINDER AMONG OTHER PROJECTS, OF THE 4.6 MILLION IN NECESSARY APPROPRIATIONS IS SLATED TO BE REQUESTED DURING THOSE TWO YEARS. DESPITE THE PROJECT COSTS FOR CSM AND BY THE END OF THE FIVE YEAR PERIOD, WE ANTICIPATE HAVING AN ENDING FUND BALANCE OF APPROXIMATELY $21.8 MILLION WITHIN THIS FUND. THAT BALANCE WILL BE USED TO CONTINUE FUNDING FUTURE IT PROJECTS AND EFFORTS CITYWIDE. AT THIS POINT, I'LL TURN THE PRESENTATION OVER TO RACHEL MULLER, OUR SENIOR IT PROJECT MANAGER. >> THANK YOU. THE CSM PROJECT WILL REPLACE MULTIPLE SYSTEMS THAT THE CITY CURRENTLY USES TO MANAGE CRITICAL ADMINISTRATIVE OPERATIONS. A KEY COMPONENT OF THE NEW SYSTEM IS A CITYWIDE SYSTEM THAT WILL SUPPORT ADMINISTRATIVE OPERATIONS, INCLUDING FINANCE, HUMAN RESOURCES, TIME-KEEPING, AND SCHEDULING FOR PART-TIME STAFF. THE PROJECT ALSO INCLUDES A BUDGET MANAGEMENT SYSTEM THAT WILL PROVIDE A PUBLIC-FACING PORTAL TO SUPPORT THE CITY'S COMMITMENT TO MAKING PUBLIC SPENDING IN CARLSBAD TRANSPARENT TO THE PUBLIC. ADDITIONALLY, THE PROJECT INCLUDES THE REPLACEMENT OF THE UTILITY BILLING SYSTEM, WHICH WILL PROVIDE AN IMPROVED PUBLIC-FACING PORTAL TO ENABLE THE PUBLIC TO VIEW DETAILS ABOUT THEIR WATER USAGE AND PAY FOR THEIR UTILITY BILL. THE FINAL COMPONENT OF THE RECOMMENDED SOLUTION IS A NEW CASHIERING SYSTEM THAT WILL ENABLE CITY STAFF TO MANAGE PAYMENTS FOR A WIDE RANGE OF PUBLIC SERVICES FROM LIBRARY SERVICES TO COMMUNITY DEVELOPMENT, PERMITTING FEES. IN RESPONSE TO DIRECTION FROM CITY COUNCIL TO EXECUTE THIS PROJECT AS A PRIORITY IN THE FIVE-YEAR STRATEGIC PLAN, STAFF FORMED A SELECTION COMMITTEE WITH REPRESENTATIVES FROM FINANCE, HUMAN RESOURCES, UTILITIES, AND INFORMATION TECHNOLOGY. IN 2023, THE CITY RELEASED A FORMAL REQUEST FOR PROPOSAL AND RECEIVED 12 PROPOSALS FOR CONSIDERATION. THE COMMITTEE SELECTED FOUR FINALISTS FROM THE 12 OPTIONS. TO SUPPORT THE FINAL DECISION, THE COMMITTEE PARTICIPATED IN MULTIPLE PRODUCT DEMONSTRATIONS AND INTERVIEWED 12 AGENCIES FOR REFERENCES FOR BOTH PRODUCTS AND SERVICES. IN 2024, THE SELECTION COMMITTEE AGREED UNANIMOUSLY ON THE RECOMMENDED SOLUTION. >> THERE ARE MANY BENEFITS TO REPLACING OUR EXISTING SYSTEMS THAT WERE ORIGINALLY IMPLEMENTED BETWEEN 1997 AND 2010. THE MODERNIZED SYSTEMS WILL IMPROVE EFFICIENCY AND PRODUCTIVITY, ALLOWING STAFF MORE TIME TO FOCUS ON PROVIDING PUBLIC SERVICES. IT'LL ALSO IMPROVE TRANSPARENCY TO THE PUBLIC BY ENHANCING ACCESS TO CITY BUDGET INFORMATION WITH THE PUBLIC FACING PORTAL. THE NEW SYSTEM WILL ALSO IMPROVE THE CITY'S CYBERSECURITY STRENGTH WITH A MODERN TECHNOLOGY INFRASTRUCTURE, WHICH IS A CRITICAL FACTOR IN MITIGATING CYBERSECURITY RISK FOR THE CITY. THERE ARE NUMEROUS BUSINESS PROCESSES THAT ARE TARGETED FOR TRANSFORMATION WITH THE IMPLEMENTATION OF THE SOLUTIONS PROPOSED BY STAFF. THE EXAMPLE WE CHOSE TO HIGHLIGHT IN TODAY'S PRESENTATION IS THE ANNUAL DEVELOPMENT APPROVAL AND PUBLISHING OF THE CITY'S BUDGET, WHICH IS CURRENTLY MANAGED AND PUBLISHED WITH A COMBINATION OF MANUAL SPREADSHEETS, WORD DOCUMENTS, GAS MAPS, AND DATA EXTRACTED FROM OUR LEGACY FINANCE SYSTEM. [02:20:02] HERE YOU CAN SEE THE BUDGET PROCESS INVOLVES EXTRACTING DATA FROM AT LEAST EIGHT DIFFERENT SOURCES, WHICH IS THEN MANIPULATED MANUALLY IN SPREADSHEETS AND FINALLY UPLOADED INTO OUR LEGACY FINANCE SYSTEM. THE CURRENT PROCESS IS VERY MANUAL AND COMPLEX, WHICH SIGNIFICANTLY INCREASES THE RISK OF HUMAN ERROR. THIS MEANS STAFF AND THE BUDGET TEAM MUST SPEND TIME CHECKING EACH OF THE SPREADSHEETS TO FIND AND CORRECT POTENTIAL ERRORS. THE NEW PROCESS WILL LEVERAGE ON MODERN BUDGET APPLICATION THAT IS DESIGNED TO MANAGE CITY BUDGETS. IT WILL ELIMINATE THE NEED TO REPEATEDLY EXPORT AND IMPORT DATA FROM MULTIPLE SYSTEMS AND SPREADSHEETS. THE PROCESS WILL BE MUCH MORE SIMPLE AND EFFICIENT AND WILL DECREASE THE CHANCE OF HUMAN ERROR, WHICH MEANS LESS STAFF TIME NEEDED TO CHECK CALCULATIONS AND MANUAL SPREADSHEETS. THE NEW SYSTEMS WILL ALSO HAVE A PUBLIC FACING PORTAL THAT PROVIDES ADDITIONAL VISIBILITY AND TRANSPARENCY INTO THE CITY'S FINANCES. THE RECOMMENDED APPROACH TO THIS PROJECT IS TO ADOPT AN 18-MONTH IMPLEMENTATION SCHEDULE. THE STRATEGY BEHIND THE 18-MONTH SCHEDULE IS TO IMPLEMENT ALL OF THE NEW SYSTEMS WITH A SINGLE PROJECT WITH THE HELP OF PROFESSIONAL SERVICES AND TEMPORARY SUPPORT RESOURCES. THE USE OF PROFESSIONAL SERVICES AND SUPPORT RESOURCES WILL MINIMIZE THE RISK OF EXPENSIVE PROJECT DELAYS. THIS IS A KEY RECOMMENDATION WE RECEIVED FROM THE REFERENCE AGENCIES WE INTERVIEWED BASED ON THE LESSONS THEY LEARNED FROM SIMILAR PROJECTS. FOR NEXT STEPS, STAFF ARE CURRENTLY WORKING TO FINALIZE VENDOR AGREEMENTS WHICH ARE ALMOST READY FOR REVIEW AND CONSIDERATION. WE WILL RETURN TO CITY COUNCIL TO REQUEST APPROVAL OF THE PROJECT AND RECOMMENDED SOLUTIONS ON APRIL 29TH. THE RECOMMENDED ACTION IS TO RECEIVE THIS INFORMATIONAL REPORT ON THE INFORMATION TECHNOLOGY CSM PROJECT. THANK YOU FOR YOUR TIME. STAFF ARE AVAILABLE TO ANSWER ANY QUESTIONS. >> THANK YOU. DO WE HAVE ANY SPEAKERS? >> THERE ARE NO SPEAKERS. >> QUESTIONS FROM COUNCIL. MR. SHIN. >> THANKS FOR YOUR PRESENTATION. JUST ONE IN REGARDS TO OUR STAFFING MODEL. LABOR INTENSIVE, THE WAY YOU GUYS ARE DESCRIBING THIS THING, WE HAVE ESSENTIALLY ANCIENT IMPLEMENTATIONS OF SOFTWARE SINCE 1997, IS THAT CORRECT? WE'RE TALKING LIKE AMERICAN ONLINE SOFTWARE APPLICATIONS, NETSCAPE, THINGS THAT IT'S LIKE RETRO AND THROWBACK. TO MARRY UP WITH IMPLEMENTATIONS THAT WE HAVE NOW, WE HAVE TO EXTRACT THIS LIKE YOU WERE SAYING, PULL IN EXCEL, AND THEN MANUALLY FEED THIS THING AND DATA DUMP IT SO THAT IT'S CORRELATING, WHICH IS LABOR INTENSIVE. ARE WE RIGHT NOW IN A PLACE WHERE OUR STAFFING MODEL THERE IS THIN AND THEY'RE WORKING BEYOND OUT OF CAPACITY AND THEN THIS WILL HELP ALLEVIATE IT, OR ARE WE OVERSTAFFED BECAUSE OF THIS AND NOW WE NEED TO ADJUST OUR STAFFING MODEL? >> THANK YOU, COUNCIL MEMBER FOR THE QUESTION. I WOULD SAY AT THIS POINT, AT VARIOUS TIMES OF THE PROCESS, AND DEPENDING ON WHICH PARTICULAR PROCESS WE'RE TALKING ABOUT, USING THE BUDGET AS AN EXAMPLE, RIGHT NOW, WE'RE IN THE THICK OF IT. I WOULD SAY CAPACITY, THERE IS NO CAPACITY REMAINING. STAFF TYPICALLY WORK LONG HOURS TO MAKE SURE THAT WE DELIVER THE PRELIMINARY AND THE ADOPTED BUDGET FOR THE CITY COUNCIL IN A TIMELY MANNER. WITH THAT SAID, AS WE MOVE FORWARD THROUGH THE IMPLEMENTATION OF THE CSM PROJECT, ASSUMING IT WERE TO BE APPROVED, THERE WILL BE EFFICIENCIES IDENTIFIED. HOWEVER, AT THE SAME TIME, THERE MAY BE ADDITIONAL FUNCTIONALITY OFFERED BY THE NEW SYSTEMS THAT STAFF WILL BE ABLE TO TAKE ADVANTAGE OF. AT THIS POINT IN TIME, WE WOULDN'T BE ABLE TO SAY FOR CERTAIN THAT THERE WOULD BE EFFICIENCIES AND LESS OF A NEED FOR CERTAIN STAFFING LEVELS. THAT WOULD BE SOMETHING THAT WE'D HAVE TO EVALUATE AS WE GO AND MOST IMPORTANTLY AT THE CONCLUSION OR POST IMPLEMENTATION OF THE PROJECT. >> THE RELIEF VALVE WOULDN'T BE BLOWING THEIR TOPS OFF ALL THE TIME, WHAT WE'RE SAYING NOW. COOL. >> ANY OTHER QUESTIONS, COMMENTS? MR. SHIN. >> THANK YOU VERY MUCH FOR YOUR PRESENTATION. I'M IN SUPPORT OF THIS. I JUST WANTED TO GIVE SOME COMPLIMENTS IN REGARDS TO THIS. FIRST, I'M GLAD WE ARE MOVING OUT OF THE '90S AND WE'RE MOVING IN 2020S. I REALLY APPRECIATE THROUGH LAURA AND ZACH, THE FINANCIAL FORETHOUGHT OF MAKING SURE THAT WE'RE DOING CAPITAL EXPENDITURE RESERVES AS OPPOSED TO BEING IN A DEFENSIVE MEASURE WHERE WE'RE LIKE, OH, MY GOD, WE NEED TO GET THIS THING AND WHERE WE'RE GOING TO PULL THIS MONEY? NOW WE GOT TO CONSIDER BONDS, NOW WE GOT TO CONSIDER VOTES. THE WAY THE PHILOSOPHY IS HERE IN YOUR FINANCIAL DEPARTMENT, I JUST GIVE YOU GUYS A LOT OF KUDOS. I WISH I COULD ALWAYS THINK LIKE THIS IN MY HOUSEHOLD BECAUSE I DON'T. [02:25:02] THAT ALSO BEING SAID, I USED TO WORK IN GPS AND TELEMETRY AND AS A DEFENSE CONTRACT, WE WOULD WORK WITH GOVERNMENT AGENCIES, AND WE ALLOWED GOVERNMENT AGENCIES TO BE GUINEA PIGS, AND I REMEMBER THAT PROCESS, WHICH IS VERY EXPENSIVE FOR THOSE AGENCIES. WHAT I REALLY LIKED OUT OF THIS BRIEFING IS THAT YOU'RE USING 12 REFERENCE AGENCIES TO DO THIS. THIS IS A PROVEN MODEL AND PROVEN SOFTWARE PROGRAMS THAT ARE APPLIED ELSEWHERE, AND WE CAN ASK ALL THE QUESTIONS WE WANT AND THEN WE KNOW THAT THAT'S GOING TO WORK FOR THE CITY OF CARLSBAD. I APPRECIATE THAT. I ALSO KNOW THE GIDDINESS OF KNOWING THIS IS THE BRIGHTEST AND SHINIEST CAR, BUT YOU GUYS ARE BEING THOUGHTFUL AND PRAGMATIC WITH THIS PROCESS. THAT ALSO THOUGH BEING SAID IS, I DO HOPE THAT WE'RE ALWAYS ON THE FOREFRONT OF THINKING OF WHAT'S TAKING PLACE WITH TECHNOLOGY. IT'S MOVING AT A PACE THAT IT'S SCIENCE FICTION LIKE. JUST KNOWING WHAT'S AHEAD OF US AND HOW IT'S GOING TO POTENTIALLY BE IMPLEMENTED WOULD JUST BE GREAT JUST TO ENSURE THAT YOU GUYS ARE USING THAT FORETHOUGHT. WE'RE ALL GEEKS ABOUT SCIENCE AND WHATNOT. I KNOW YOU GUYS ARE PROBABLY ARE, AND WITH THAT, I JUST APPRECIATE YOU GUYS. THANK YOU. >> ANY OTHER COMMENTS? MS. ACOSTA. >> THANK YOU. I WANT TO ECHO THE COMMENTS AND SENTIMENTS OF COUNCIL MEMBER SHIN IN THANKING STAFF FOR PUTTING TOGETHER. I KNOW SOME OF THIS PRE-EXISTED YOU OR ME. FOLKS HAVE BEEN WORKING ON THESE PROJECTS FOR A LONG TIME AND STASHING AWAY MONEY INTO THESE FUNDS AND GROWING THE FUNDS SO THAT WE COULD PREPARE FOR THIS MOMENT THAT WE'RE IN NOW. THERE'S MANY THINGS THAT WE HAVE DONE, INCLUDING THE FIBER THAT WE'VE INSTALLED AND THE SPECIAL PROPS TO MS. CALENDAR AND HER TEAM AS WELL FOR ALL THE WORK THAT WE'VE DONE FOR YEARS TO GET TO WHERE WE ARE NOW. IT SEEMS LIKE SOMETIMES WE'RE A LITTLE BIT AHEAD OF EVERYONE ELSE, BUT ALSO SEEING THAT EVERYBODY ELSE SEEMS TO BE MOVING ON BOARD WITH THEIR SINGLE PLATFORM AND WE'RE A LITTLE BIT BEHIND IS LIKE, OH, GOSH, WE NEED TO MAKE SURE WE ARE GETTING TO WHERE WE NEED TO BE SO THAT WE ARE ABLE TO CONNECT ALL OF OUR SYSTEMS AND PROCESSES INTO THIS MORE MODERN SYSTEM. THANK YOU FOR THE WORK THAT YOU'RE DOING, ALL THE DIFFERENT DEPARTMENTS, WORKING TOGETHER AND COLLABORATING AND MAKING SURE THAT WE STAY AT THE TOP OF ALL THE CITIES IN OUR REGION AND DARE I SAY THE STATE. THANK YOU. >> MS. BHAT-PATEL. >> YES. THANK YOU. THANKS FOR THE PRESENTATION. I KNOW WHEN YOU ALL PRESENTED THIS BACK IN 2020, IT WAS REALLY EXCITING TO HEAR THAT WE WERE GOING TO START MOVING IN THIS PARTICULAR DIRECTION, AND SO IT'S NICE TO SEE THAT WE'VE MADE SOME PROGRESS AND THAT WE'RE HOPING TO CONTINUE TO SHIFT TO MORE MODERN TECHNOLOGY. I WANT TO ECHO THE SENTIMENTS THAT MR. SHIN MADE WITH REGARDS TO TECHNOLOGY AND MAKING SURE WE'RE STAYING ON THE FOREFRONT. I KNOW YOU ALL ALWAYS ARE. I THINK JUST BEING ABLE TO CONTINUE TO HEAR FROM YOU ALL IN TERMS OF WHAT THOSE NEEDS MIGHT BE AS THEY CONTINUE TO EVOLVE WILL BE BENEFICIAL FOR US TO MAKE SURE WE'RE STAYING ON TOP OF IT AND THAT WE CONTINUE TO BE A LEADER IN THE REGION. THANK YOU AGAIN SO MUCH FOR THE PRESENTATION. >> I'VE BEEN WORKING FOR A LOT OF YEARS WITH SOME OF THESE IT GENIUSES. I HAZE OVER WHEN WE TALK ABOUT IT STUFF. I'M STILL LEARNING HOW TO USE MY EMAIL. BUT I KNOW WHO WE HAVE WORKING FOR US, AND I KNOW THAT THIS TEAM IS UNBELIEVABLY SKILLED, AND I HAVE SO MUCH CONFIDENCE IN YOUR GUYS' ABILITIES AND THANK YOU SO MUCH. THIS IS JUST ADVISORY, IS THAT CORRECT? THANK YOU VERY MUCH. ITEM NUMBER 7, CITY MANAGER. [7. TRANSITION OF THE BEACH PRESERVATION COMMISSION TO THE ENVIRONMENTAL SUSTAINABILITY COMMISSION] >> THANK YOU. ITEM 7 IS THE TRANSITION OF THE BEACH PRESERVATION COMMISSION TO THE ENVIRONMENTAL SUSTAINABILITY COMMISSION, AND TO PRESENT THIS ITEM IS ENVIRONMENTAL SUSTAINABILITY DIRECTOR, JAMIE WOOD. >> GOOD EVENING, MAYOR, MAYOR PRO TEM, COUNCIL MEMBERS, AND HAPPY EARTH DAY. MY NAME IS JAMIE WOOD. I'M THE ENVIRONMENTAL SUSTAINABILITY DIRECTOR. THE ITEM BEFORE YOU TONIGHT IS TO ADOPT A RESOLUTION APPROVING THE TRANSITION OF THE BEACH PRESERVATION COMMISSION TO THE ENVIRONMENTAL SUSTAINABILITY COMMISSION. IN NOVEMBER OF 2024, CITY COUNCIL PASSED TWO MOTIONS RELATED TO THIS ITEM. FIRST TO DIRECT STAFF TO CONSOLIDATE THE BEACH PRESERVATION COMMISSION INTO A SUSTAINABILITY COMMISSION, INCLUDING A MISSION STATEMENT AND DUTIES OF WHICH THIS COMMISSION WOULD PROVIDE RECOMMENDATIONS TO CITY COUNCIL, AND SECOND TO DIRECT STAFF TO INCLUDE OPEN SPACE AS PART OF THE ENVIRONMENTAL SUSTAINABILITY COMMISSION DISCUSSION AND INCLUDE ADOPTING A POLICY THAT DISCOURAGES EXEMPTIONS TO THE DEVELOPMENT STANDARDS THAT WOULD DECREASE OPEN SPACE. JUST LOOKING AT THE CURRENT SCOPE OF THE BEACH PRESERVATION COMMISSION, IT'S TO INVESTIGATE RESEARCH, [02:30:02] AND MAKE RECOMMENDATIONS TO THE CITY COUNCIL AND CITY MANAGER ON GENERAL COASTAL TOPICS, STUDIES AND PROGRAMS, INCLUDING PROTECTING AND ENHANCING THE SHORELINE, PREVENTING BEACH EROSION, AND PRESERVING AND MAINTAINING BEACHES FOR THE SAFETY AND OPTIMUM ENJOYMENT OF THE PUBLIC. THE CURRENT BEACH PRESERVATION COMMISSION IS MADE UP OF SEVEN MAYORAL APPOINTEES, AND AS YOU CAN SEE, EACH DISTRICT IS CURRENTLY REPRESENTED. LOOKING AT A PROPOSED TRANSITION TO AN ENVIRONMENTAL SUSTAINABILITY COMMISSION, WE LOOKED AT A MISSION OR A PURPOSE OF THIS COMMISSION TO ALIGN WITH THE CITY'S COMMUNITY CORE VALUE OF OPEN SPACE AND THE NATURAL ENVIRONMENT AND SUSTAINABILITY, TO ALIGN WITH THE COUNCIL'S STRATEGIC PLAN GOAL OF SUSTAINABILITY IN THE NATURAL ENVIRONMENT, AND DOING THAT, REALIZING THAT THROUGH EDUCATION, POLICY DISCUSSION, LISTENING TO THE COMMUNITY, AND WHERE APPROPRIATE, PROVIDING THOSE RECOMMENDATIONS TO CITY COUNCIL. LOOKING AT THE AREAS OF RESPONSIBILITY, WE KEPT THE BEACH NOURISHMENT AND SHORELINE PRESERVATION ITEM THAT WAS ALREADY PART OF THE BEACH PRESERVATION COMMISSION, AND WE JUST EXPANDED THAT TO INCLUDE NATURAL RESOURCES, OPEN SPACE AND THE PRESERVES, AND ALSO CLIMATE ADAPTATION AND ENVIRONMENTAL SUSTAINABILITY. THIS IS THE RECOMMENDATION OF STAFF BEFORE YOU TODAY. ADDITIONALLY, AS IT WAS PREVIOUSLY, THE SEVEN MAYORAL APPOINTMENTS, WE ARE SIMILARLY TO THE PLANNING COMMISSION TRAFFIC SAFETY AND MOBILITY AND THE PARKS AND RECREATION COMMISSION, WE'RE RECOMMENDING THAT WE MOVE THIS TO A COMMISSION THAT IS APPOINTED BY THREE MAYORAL APPOINTMENTS AND THEN ONE PER DISTRICT APPOINTEE. WE, AS PART OF THIS, ARE ALSO RECOMMENDING THAT WE RETAIN THE CURRENT COMMISSIONERS IF THEY DESIRE TO REMAIN UNTIL THEIR TERMS EXPIRE, AND THEN ALSO EXTENDING, ADJUSTING THEIR CURRENT TERMS TO ALIGN WITH THE ELECTED OFFICIALS' TERMS. THAT CHART WAS IN THE RESOLUTION AND THEN THE STAFF REPORT THAT WAS THERE SHOWING THOSE ADJUSTMENTS TO THEIR TERMS. THEN FINALLY, THE TRANSITION SCHEDULE THAT WE'RE RECOMMENDING. THE BEACH PRESERVATION COMMISSION HAD APPROVED A MEETING SCHEDULE FOR THE YEAR, SO WE ARE RECOMMENDING MAKING NO CHANGES TO THAT. THEY DID MEET EARLIER THIS MONTH. TONIGHT, WE ARE MEETING TO DISCUSS THAT TRANSITION PLAN. THEY HAVE A MEETING SCHEDULED ON JUNE 5TH, WHICH IF APPROVED TONIGHT, WOULD BE THE FINAL BEACH PRESERVATION COMMISSION MEETING. WE WOULD BE BACK TWICE IN JUNE WITH THE INTRODUCTION OF ORDINANCE AND ADOPTION OF ORDINANCE TO THE MUNICIPAL CODE, MAKING THE CHANGES. THEN AUGUST 7TH WOULD BE THE FIRST MEETING OF THE ENVIRONMENTAL SUSTAINABILITY COMMISSION, AT WHICH POINT WE WOULD BEGIN WORKING ON A WORK PLAN THAT WOULD ULTIMATELY COME BACK TO YOU FOR APPROVAL. THEN AS PART OF THAT WORK PLAN, WE WOULD ALSO ENSURE THAT THE LAST PART OF THAT SECOND MOTION, WHICH WOULD LOOK AT THE OPEN SPACE AS PART OF THE DEVELOPMENT STANDARDS WOULD BE INCLUDED IN THAT WORK PLAN TO BE BROUGHT BACK TO YOU. WITH THAT, THE RECOMMENDED ACTION FOR TONIGHT IS TO ADOPT A RESOLUTION APPROVING THE TRANSITION OF THE BEACH PRESERVATION COMMISSION TO THE ENVIRONMENTAL SUSTAINABILITY COMMISSION, AND I'M HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE. >> DO WE HAVE SPEAKERS? >> YES. LYNDA DANIELS, FOLLOWED BY PAGE DECENO. >> GOOD EVENING, MAYOR, CITY COUNCIL. I'VE BEEN HERE MANY TIMES BEFORE ON ENVIRONMENTAL ISSUES. I AM A MEMBER OF THE SIERRA CLUB AND A MEMBER OF THE SAN DIEGO BUILDING ELECTRIFICATION COALITION, AS WELL AS I AM YOUR REPRESENTATIVE ON THE CEA, CLEAN ENERGY ALLIANCE. WHAT WE DO IS MAKE RECOMMENDATIONS TO THE CEA FROM THINGS THAT WE ARE DOING IN AD HOC COMMITTEES THERE. GLAD TO SAY, NO, WE'RE NOT RAISING OUR RATES, SO STAY WITH THE CEA. [LAUGHTER] I'M HERE TO TALK ABOUT HOW GREAT IT'S GOING TO BE TO HAVE A SUSTAINABILITY COMMISSION. I'M IN FAVOR OF IT, OF COURSE, AND I'VE BEEN TABLING OUTSIDE OF THE CARL LIBRARY FOR ALMOST TWO YEARS, AND DURING THAT TIME, WE HAD LOTS OF THINGS FOR THEM TO SIGN, AND EVERYBODY ALWAYS SIGNED THEY WANT A SUSTAINABILITY COMMISSION. WE HAVE ALMOST 300 SIGNATURES ON PETITIONS FOR THAT. IF YOU WANT TO SEE IT, WE CAN PRESENT THAT TO YOU. WE DIDN'T BRING IT TONIGHT, WE FORGOT. SORRY. THERE ARE A COUPLE OF THINGS THAT I WOULD LIKE THE SUSTAINABILITY COMMISSIONER TO THINK ABOUT. [02:35:01] I KNOW THAT WE HAVE A RULE HERE IN CARLSBAD IF YOU CUT DOWN ONE TREE, REPLACE IT WITH TWO TREES. IS THAT CORRECT? I WANT THE NEIGHBORS ON EITHER SIDE OF ME TO DO THAT, TOO. THEY EACH CUT DOWN HUGE TREES IN THEIR FRONT YARD, AND THERE'S NOTHING THERE NOW. I WOULD LIKE NEIGHBORS TO KNOW THAT THEY CAN PUT TWO TREES FOR EVERY ONE TREE THAT THEY CUT DOWN. [LAUGHTER] LITTLE THINGS LIKE THAT. DON'T USE GAS BLOWERS ON YOUR PROPERTY BECAUSE IT'S BAD FOR YOUR HEALTH AND IT'S BAD FOR THE COMMUNITY AND THE AIR AND THE POLLUTION. THAT'S THE THINGS I'M LOOKING AT. >> I CAN'T READ MY WRITING. I'M SO BAD. I WAS JUST TALKING ABOUT THIS THE OTHER DAY, IS THAT I WROTE SOMETHING DOWN I'M GOING TO DO TOMORROW, AND I CAN'T READ WHAT IT IS I'M SUPPOSED TO DO IN MY CALENDAR BECAUSE I'M USED TO CHARTING. I WAS A SOCIAL WORKER FOR 13 YEARS, AND I WAS SO USED TO CHARTING IN MEDICAL CHARTS. I'M JUST USED TO SCRIBBLING LIKE DR. SCRIBBLE, SO I'M SORRY. I JUST WANT THE COMMITTEE TO WORK TO MAKE CARLSBAD AN EXAMPLE FOR THE REST OF NORTH COUNTY. WE WANT TO LIKE IT BETTER THAN ENCINITAS. WE WANT TO BE THIS CITY THAT'S THE MOST SUSTAINABLE. I THANK YOU SO MUCH FOR LISTENING TO ME, AND I THANK YOU IN ADVANCE FOR PASSING THIS RESOLUTION. THANK YOU. >> HI, MAYOR AND CITY COUNCIL. I'M PAGE DECENO, A LONGTIME CARLSBAD RESIDENT. HAPPY EARTH DAY, JUST LIKE JAMIE SAID. SIXTY-FIVE YEARS AGO ON THE FIRST EARTH DAY, OUR COUNTRY BEGAN AS AN AWAKENING OF THE IMPACT THAT WE'VE HAD ON OUR ENVIRONMENT, AND THE NEED TO SET UP PROTECTIONS FOR OUR NATURAL WORLD TO ENSURE THE HEALTH NOT ONLY OF THE HABITATS OUT THERE, BUT OUR OWN SPECIES HEALTH AS WE ARE SO CLOSELY INTERTWINED WITH THE NATURAL ENVIRONMENT. LAWS LIKE THE CLEAN AIR ACT AND THE CLEAN WATER ACT HAVE IMPROVED LIFE FOR COUNTLESS COMMUNITIES ACROSS OUR COUNTRY. BUT WE NOW SAT AT A POINT IN HISTORY THAT MANY OF THOSE PROTECTIONS ARE AT RISK OF BEING UNDONE, LEAVING THE PLANET MORE LIKELY TO SUCCUMB TO CLIMATE CHANGE DAMAGE AND THE LOSS OF BIODIVERSITY. THANKFULLY, HERE WE HAVE A COMMUNITY THAT VALUES OUR NATURAL WORLD. THANK YOU FOR TAKING THE STEP TO CREATE A COMMISSION THAT WILL HELP THE CITY BETTER REACH ITS SUSTAINABILITY GOALS, HELP MAP OUT A FUTURE FOR OUR CLIMATE ACTION PLAN, AND WORK ON IMPORTANT ENVIRONMENTAL ISSUES TO OUR RESIDENTS. IN PARTICULAR, I'D LIKE TO THANK MR. WOODS FOR HIS WORK ON THIS TRANSITION. THE APPOINTMENT OF COMMISSIONERS AS OUTLINED IN THE STAFF REPORT SEEMS REASONABLE. HOWEVER, TO ENSURE THAT WE REACH OUT TO RESIDENTS THAT HAVE A VESTED INTEREST IN ENVIRONMENTAL SUSTAINABILITY, I THINK THE COMMISSION SPOT SHOULD BE OPEN TO EVERYBODY. THIS COULD MEAN THAT IF THE EXISTING BEACH PRESERVATION COMMISSIONERS WANT TO REMAIN ON THE NEW COMMISSION. THEY SHOULD SUBMIT THEIR APPLICATIONS ALONG WITH INTERESTED OTHER PARTIES, THUS ALLOWING THE COUNCIL TO SELECT THE BEST CANDIDATES. OTHERWISE, THIS IMPORTANT COMMISSION MIGHT WAIT MANY MONTHS, TO MANY YEARS TO RECEIVE FRESH IDEAS. I HOPE YOU CONSIDER MY ALTERNATIVE, AND THANK YOU FOR THE OPPORTUNITY TO SPEAK. >> THERE ARE NO ADDITIONAL SPEAKERS. >> QUESTIONS FROM COUNCIL. SEVEN MEMBERS SEEMS TOO MANY. TELL ME THE PROS AND CONS OF HAVING SEVEN MEMBERS VERSUS MAYBE A MORE MANAGEABLE FIVE MEMBERS. >> WE KEPT IT AT SEVEN BECAUSE THAT IS THE CURRENT BEACH PRESERVATION COMMISSION MEETING. COMMISSION IS AT SEVEN NOW AND SO WE JUST MAINTAIN THE SEVEN. >> IS SEVEN A GOOD NUMBER, OR IS THAT START TO GET TOO HARD TO MANAGE SEVEN PEOPLE? >> IT SEEMS TO BE FOR THE COMMISSIONS THAT WE HAVE, AND MAYBE OUR PARKS AND REC DIRECTOR IS WORKING WITH THAT COMMISSION NOW, SO MAYBE HE COULD SPEAK TO THAT. >> THANK YOU, MAYOR. KYLE ANCASTER, PARKS AND RECREATION DIRECTOR. WE HAVE A TOTAL OF THREE COMMISSIONS IN PARKS AND RECREATION CURRENTLY, AND TWO OF THE THREE HAVE SEVEN MEMBERS, PARKS AND RECREATION COMMISSION AND BEACH PRESERVATION COMMISSION. SENIOR COMMISSION HAS FIVE MEMBERS. FRANKLY, IT'S VIABLE FOR STAFF TO WORK WITH EITHER FIVE OR SEVEN MEMBERS COMMISSION. IT REALLY DOES NOT MAKE A SIGNIFICANT IMPACT TO STAFF. >> OKAY. THE REASON I ASKED THAT IS THAT I DON'T ATTEND THOSE MEETINGS, AND IT JUST SEEMS MANAGING SEVEN PEOPLE WOULD BE MORE DIFFICULT THAN MANAGING FIVE. I DON'T HAVE A PREFERENCE, I'M JUST ASKING IF NOW IS THE TIME TO CHANGE IT, IF YOU THINK IT'S A GOOD IDEA, OR IF IT'S NOT A GOOD IDEA, [02:40:02] I WILL ABANDON THAT QUESTION. >> THERE HAVE PREVIOUSLY BEEN ISSUES YEARS AGO WITH GETTING A QUORUM FOR MEMBERS. BUT AGAIN, THAT WAS PROBABLY 3-5 YEARS AGO, LET'S SAY, BEFORE COVID, IN RECENT TIMES. THAT HAS NOT BEEN A CONCERN. WE'VE HAD COMMISSIONERS ATTENDING ON A ROUTINE BASIS AND DID NOT HAVE TO CANCEL MEETINGS DUE TO THE LACK OF QUORUM. THAT WOULD BE THE ONLY ADDITIONAL CONSIDERATION I WOULD SUGGEST. >> OKAY. THANK YOU. COMMENTS. MR. SHIN. >> THANKS FOR THE BRIEFING. I IN SUPPORT OF SWITCHING FROM BEACH PRESERVATION TO WHAT IT'S GOING TO BE. IT SEEMS LIKE IT'S GOING TO CO-ALIGN WITH OUR STRATEGIC PLAN AND IT JUST A LOT MORE LOCK AND FOOT OF WHAT IT IS THAT WE WANT FOR POLICY. THOUGH ONE THING I DO WANT TO SAY, AND I LISTEN TO ALL OF YOU GUYS, AND I ABSOLUTELY BELIEVE YOU. MY RESTAURANT WAS A SURFRIDER FOUNDATION-CERTIFIED RESTAURANT; I DID EVERYTHING I COULD TO ENSURE SUSTAINABILITY. HOWEVER, I WILL SAY ONE THING. WHEN WE TALK ABOUT A PUBLIC-PRIVATE PARTNERSHIP, AND WE'RE TALKING ABOUT BUSINESSES, SOMETIMES THE OWNERS OF WHAT NEEDS TO TAKE PLACE RESIDES ON THE COSTS OF THE EMPLOYER OR THE SMALL BUSINESS OWNER TO HAVE TO PROVIDE. WITH HOW THINGS ARE RIGHT NOW AND HOW MARGINS ARE SO TIGHT, I JUST WANT TO REALLY MAKE SURE THAT AS WE PROVIDE POLICY, IF IT'S GOING TO INCREASE THE COST TO LIKE OUR SMALL BUSINESS OWNERS, AND THESE ARE THE FOLKS THAT ARE ACTUALLY PAYING OUR BILLS HERE VIA SALES TAX AND WHATNOT THAT THEY'RE ALSO REPRESENTED. I WOULD RATHER IT NOT BE LIKE WHAT HAS TAKEN PLACE THROUGHOUT MY COURSE OF THE FIVE YEARS, WHICH WAS SOMETIMES A POLICY GETS ENACTED. I'M LIKE, I CAN'T PENCIL THIS THING OUT RIGHT NOW. I'M JUST TRYING TO SURVIVE. THE NEXT THING YOU KNOW, I START HAVING THAT FEELING OF ANTAGONISM TOWARDS WHAT OUR CITY POLICIES ARE GOING TO BE. I WOULD RATHER A FLESH THE DIALOGUE OUT AS MUCH AS POSSIBLE AND THEN ALSO SO THAT STAFF DOESN'T END UP HAVING TO TAKE THESE THINGS AND BE THE BRUNS OF THE CUSTOMER SERVICE EXPERIENCE SO THAT IF WE CAN GET BOUGHT IN AHEAD OF TIME AND WE'RE LIKE, WE'RE ANTICIPATING AND WE GET IT, IT'S NOT GOING TO FACTOR COSTS WITH US, MAYBE SUBSIDIZE, WHATEVER IT IS, THEN WE'RE HAVING A POSITIVE MESSAGE TO GOING, HEY, WHAT'S NEXT? WHAT IS THIS COMMISSION GOING TO DO AND CREATE POLICY FOR THE CITY FOR US? I JUST WANT TO MAKE SURE THAT WE'RE NOT A SMALL BUSINESS OWNERS ARE DISCOUNTED AT THIS PROCESS AND A PART OF THE PROCESS, LIKE IT SAID RIGHT HERE. >> ANY OTHER COMMENTS? MS. ACOSTA? >> I AM SO EXCITED. THANK YOU VERY MUCH FOR THE PRESENTATION AND LAYING OUT THE PLAN. I AM FULLY SUPPORTIVE. I DIDN'T SAY IN THE AGENDA ITEM BECAUSE I WAS READING IT. IT DIDN'T TALK A LOT ABOUT THE HISTORY, BUT THIS WAS SOMETHING THE COMMUNITY HAS BEEN ASKING FOR FOR A LONG TIME, AND IT WAS ONE OF THE RECOMMENDATIONS ON THE BACK OF THE GROWTH MANAGEMENT COMMITTEE'S REPORT. IT WAS LIKE, ALSO, WE RECOMMEND THESE FEW THINGS. TWO OF THOSE THINGS WERE ESTABLISHING AN ENVIRONMENTAL SUSTAINABILITY COMMISSION, AND ANOTHER WAS ADDRESSING THE OPEN SPACE STANDARDS. WE COMBINED THEM INTO THIS. THE COUNCIL FULLY SUPPORTED IT IN NOVEMBER OF 2024, AND I'M SO EXCITED ON EARTH DAY. IN THIS SPECIAL, YOU ARE KICKING OFF ARBOR WEEK. IT'S SO PERFECT IN THIS EXCITING TIME TO APPROVE THIS. I'M 100% BEHIND THIS. I'M VERY EXCITED. THANK YOU. >> MS. BHAT-PATEL. >> THANK YOU. THANKS TO THE SPEAKERS, AND THANK YOU TO MR. WOOD. I HAVE TO SAY I KNOW THAT THE SPEAKERS THAT ARE HERE AND OTHERS HAVE BEEN ASKING FOR THIS EVEN BEFORE I GOT ON. THAT WAS LIKE 2017, EVEN PRIOR TO THAT. I KNOW YOU ALL HAVE BEEN SHOWING UP TO SO MANY MEETINGS, ASKING FOR THAT, AND CHATTING WITH ALL OF US REGARDING THAT. I KNOW COUNCIL MEMBER LUNA AT THE TIME HAD ASKED FOR THIS TO BE BROUGHT FORWARD, AND I'M GLAD THAT WE WERE FINALLY ABLE TO MAKE IT HAPPEN BECAUSE I KNOW THERE WERE TIMES THAT WE TRIED AND IT DIDN'T HAPPEN, AND JUST GLAD THAT IT FINALLY WAS ABLE TO MOVE FORWARD. LOOKING FORWARD TO IT TRANSITIONING, I THINK THIS WILL BE A VERY HOLISTIC APPROACH TO ADDRESSING MANY OF THE THINGS THAT COME BEFORE US IN TERMS OF ENVIRONMENT AND SUSTAINABILITY. I THINK WE HAVE A LOT OF PASSIONATE FOLKS ABOUT THAT WITHIN OUR COMMUNITY. I THINK IT'LL BE A GREAT AVENUE FOR NOT ONLY RECOMMENDATIONS TO COME TO US, BUT FOR FOLKS TO UTILIZE THEIR EXPERTISE TO PROVIDE US WITH RECOMMENDATIONS. REALLY LOOKING FORWARD TO IT, AND THANK YOU AGAIN FOR MAKING IT HAPPEN. >> MOTION, PLEASE. >> MOVE ADOPTION OF THE RESOLUTION. >> SECOND. >> PLEASE VOTE. IT PASSES UNANIMOUSLY. [PUBLIC COMMENT] DO WE STILL HAVE A LEFTOVER PUBLIC COMMENT FROM THE BEGINNING OF THE MEETING? >> WE DO. >> WOULD YOU PLEASE CALL THAT SPEAKER? >> CAITLIN WERNIG. >> THANK YOU FOR BEING SO PATIENT. [02:45:03] >> GOOD EVENING, MAYOR AND CITY COUNCIL MEMBERS. MY NAME IS CAITLIN WERNIG, AND I'M A FRESHMAN AT PACIFIC RIDGE HIGH SCHOOL. I'VE BEEN A CARLSBAD RESIDENT FOR NEARLY 11 YEARS NOW, AND I'D LIKE TO START OFF BY SAYING I FEEL INCREDIBLY FORTUNATE TO LIVE IN SUCH A SAFE AND VIBRANT COMMUNITY. CARLSBAD HAS ALWAYS BEEN A PLACE OF GROWTH AND PROGRESS, AND I'M GLAD TO BE A PART OF A CITY DEDICATED TO ITS DIVERSE POPULATION. TODAY, I'M HERE TO ADDRESS AN IMPORTANT ISSUE IN OUR COMMUNITY REGARDING THE PROTECTION OF CHILDREN IN CARLSBAD, THE USE OF E-BIKES BY CHILDREN UNDER THE AGE OF 12. AS THE CITY OF CARLSBAD CONTINUES TO EMBRACE ITS MODERN TECHNOLOGIES, I BELIEVE THAT IT IS IMPORTANT TO PRIORITIZE THE SAFETY AND WELL-BEING OF THE YOUNGER CITIZENS OF THE COMMUNITY. WHILE E-BIKES HAVE BROUGHT SEVERAL BENEFITS, WE MUST REALIZE THAT THEY PRESENT SIGNIFICANT RISK TO CHILDREN WHO ARE NOT YET PHYSICALLY OR MENTALLY EQUIPPED TO OPERATE THEM. ADDITIONALLY, DRIVERS AND OTHER PEOPLE ON THE ROAD CREATE ANOTHER ISSUE. WATCHING MY OLDER SISTER LEARN TO DRIVE OVER THE PAST YEAR, AND KNOWING THAT I WILL BE DOING THE SAME IN THE UPCOMING YEAR, I'VE BECOME ACUTELY AWARE OF THE CHALLENGES ASSOCIATED WITH NAVIGATING THE ROAD WITH E-BIKES. WHETHER IT'S AN E-BIKE OR SWERVING OUT OF A LANE, TURNING WHERE IT'S NOT SUPPOSED TO, OR CAUSING TRAFFIC TO SURROUNDING CARS, THERE'S A LOT OF DANGER INVOLVED FOR BOTH THE DRIVERS AND THE E-BIKERS. E-BIKES ARE CAPABLE OF TRAVELING AT VERY HIGH SPEEDS, RANGING FROM 20-28 MILES PER HOUR. FOR CHILDREN, PARTICULARLY THOSE UNDER THE AGE OF 12, MAINTAINING CONTROL AND DRIVING SAFELY IS A CHALLENGING TASK. BETWEEN DEVELOPING BALANCE, COORDINATION, REFLEXES, AND SIMPLY LEARNING THE RULES OF THE ROAD, IT TAKES MONTHS, IF NOT YEARS, FOR AN INDIVIDUAL TO BE SAFELY PREPARED TO RIDE AN E-BIKE. THIS IS ESPECIALLY DANGEROUS CONSIDERING THAT E-BIKE ACCIDENTS OFTEN RESULT IN SERIOUS INJURIES, INCLUDING FRACTURES OR BREAKS TO THE BONES, INJURIES TO THE HEAD, AND IN SOME CASES, EVEN FATALITIES. WITH THIS IN MIND, I REQUEST THAT YOU TAKE INTO CONSIDERATION BANNING THE USE OF E-BIKES FOR CHILDREN UNDER THE AGE OF 12. THROUGH DOING THIS, WE CAN PREVENT DANGER AND PROMOTE SAFETY IN THE BEAUTIFUL COMMUNITY THAT WE LIVE IN. THANK YOU. THANK YOU. YOU WERE SO PATIENT THROUGH THIS WHOLE MEETING, AND I SEE A PROUD, I'M GUESSING, MOM OR OLDER SISTER IN THE AUDIENCE, TAKING PICTURES. IF YOU HANG OUT FOR A FEW MINUTES AND WE'RE FINISHED, I'D LOVE TO HAVE YOU JOIN US FOR MOM TAKE A QUICK PICTURE OF ALL OF US TOGETHER. IS THAT OKAY WITH YOU? >> YES. THANK YOU. >> OKAY. CLOSING COMMENTS, MR. SHIN. [COUNCIL COMMENTARY AND REQUESTS FOR CONSIDERATION OF MATTERS] >> I DON'T KNOW MUCH OTHER THAN JUST HEARING THAT SPEECH. WE ALWAYS KEEP HEARING ABOUT THE NEXT GENERATION, WHO THEY ARE AND OH, MY GOD, I CAN'T BELIEVE THESE PEOPLE ARE DOING THIS AND THAT. I SEE THE BRIGHT FUTURE WHEN I HEAR SOMEONE COME UP THERE. SOMEONE'S GOING TO NEED TO TAKE OUR SPOTS BECAUSE WE'RE GOING TO BE OLD AND SENILE BY THEN, COMPLAINING ABOUT PUBLIC COMMENTS ABOUT USAGE RATES. COME ON BOARD, WATER IS GOING TO BE WARM, AND YOU HAVE A BRIGHT FUTURE AHEAD. KEEP THAT ATTITUDE. >> MS. BURKHOLDER, MS. ACOSTA. >> YES. THANK YOU. I SIT ON THE LEGISLATIVE SUBCOMMITTEE AND ALSO I AM THE DELEGATE TO THE SAN DIEGO DIVISION OF LEAGUE OF CALIFORNIA CITIES. THIS IS THE LEAGUE OF CALIFORNIA CITIES' ADVOCACY WEEK. IT STARTS TOMORROW AND GOES THROUGH THE WEEK. IT IS THE TIME WHEN WE HAVE WHAT THEY CALL THE CITY SUMMIT. ALL THE CITIES OF CALIFORNIA THAT WANT TO ADVOCATE IN SACRAMENTO. GET TALKING POINTS AND HAVE SEMINARS AND WORKSHOPS, BUT ALSO LEGISLATIVE ADVOCACY MEETINGS WITH LEGISLATORS. I WILL BE ATTENDING THOSE MEETINGS. I'VE GOT A VERY FULL SCHEDULE STARTING, I THINK THE FIRST MEETINGS AT 9:30 AM TOMORROW, WHERE WE'VE GOT AN OPENING SESSION. WE'RE GOING TO TALK ABOUT THINGS LIKE THE IMPLEMENTATION OF PROP 36, WHICH PASSED THE BALLOT IN NOVEMBER. WE WILL BE TALKING ABOUT THE ENVIRONMENT, WE WILL BE TALKING ABOUT COASTAL RESILIENCY, PUBLIC SAFETY, KEEPING LOCAL LAND USE AUTHORITY IN THE HANDS OF LOCAL CITIES, LOCAL GOVERNMENTS. WE'LL ALSO BE TALKING ABOUT HOUSING AND HOMELESSNESS, AND I'M MODERATING A PANEL. ON ENCAMPMENT RESOLUTION GRANTS. I'M EXCITED BECAUSE WE HAVE RECEIVED THOSE FUNDS, AND I'LL BE WORKING WITH PETALUMA AND A FEW OTHER CITIES ON A WORKSHOP PANEL THAT CAN TALK ABOUT THOSE ENCAMPMENT RESOLUTION GRANT FUNDS. IT WILL BE A VERY EXCITING WEEK, AND I'M SURE WE'LL HAVE PICTURES AND A LOT TO REPORT WHEN I GET BACK. THANKS. >> MS. BHAT-PATEL. >> YES, THANK YOU. I KNOW OVER THE COURSE OF THE LAST WEEK, WE HAD THE PRIVILEGE OF ATTENDING THE CARLSBAD FIRE DEPARTMENT'S PROMOTIONS AND RECOGNITIONS AWARD CEREMONY, AND I JUST WANT TO GIVE A SHOUT-OUT TO OUR DEPARTMENT AND ALL THE AMAZING WORK THEY DO. I KNOW IT WAS A VERY EMOTIONAL MORNING FOR MANY OF US, HEARING ALL THE AMAZING WORK THAT'S BEING DONE BY THE DEPARTMENT. THANK YOU TO THEM AND OUR PUBLIC SAFETY PERSONNEL IN [02:50:01] GENERAL FOR ALL THAT THEY DO TO KEEP US ALL SAFE. LAST THURSDAY, WE HAD OUR NORTH COUNTY TRANSIT DISTRICT BORDER DIRECTORS MEETING, WHICH WE TALKED ABOUT, JUST OVERALL THE STATE OF AFFAIRS OF NCTD, BUT ALSO WHAT WE'RE PLANNING TO DO AS WE LOOK AHEAD FOR THE COURSE OF THE YEAR. YOU CAN DEFINITELY CHECK THAT OUT. I WON'T GO INTO ALL OF THE NITTY-GRITTY DETAILS. BUT WE DID DO SOME FORWARD PLANNING FOR THAT AS WELL, AND JUST TALKED ABOUT HOW WE'D LIKE TO PRIORITIZE WHAT WE'D LIKE TO DO FOR NCTD IN NORTH COUNTY IN GENERAL. THEN I HAD THE SANDI TRANSPORTATION COMMITTEE MEETING, AND THERE WE DID TALK ABOUT MANY DIFFERENT THINGS. I SIT THERE FOR NCTD, AND IT WAS SPECIFICALLY REGARDING NCTD THAT WE HAD A COUPLE OF DECISIONS THAT WE NEEDED TO MAKE. THANKFULLY, THOSE DID PASS. THEN, THIS WEEK, I HAVE THE CLEAN ENERGY ALLIANCE BOARD OF DIRECTORS MEETING, AND THEN YOU'VE HEARD ABOUT THE CARLS CITY'S BOARD MEETING. WE ALSO HAVE ON SATURDAY, THE SO CARL API FESTIVAL. API ASIAN PACIFIC ISLANDER HERITAGE MONTH STARTS OFF IN MAY, AND THERE'S A HUGE FESTIVAL HAPPENING HERE IN NORTH COUNTY FOR THE SECOND TIME, WHICH IS VERY EXCITING. OTHER THAN THAT, THANK YOU SO MUCH. >> SOMETIMES PEOPLE ASK ME WHAT THE PARTS OF THE JOB I ENJOY THE MOST, AND THERE'S SEVERAL. BUT I GOT TO TELL YOU THIS LAST WEEK, I GOT INVITED TO LOIS TUBON'S 105TH BIRTHDAY TO GIVE HER A PROCLAMATION. I GOT TO SAY THAT'S ONE OF THE MOST FUN THINGS TO DO, AND I'LL TELL YOU FOR 105, SHE'S GOT IT GOING ON. CITY MANAGER. [CITY MANAGER COMMENTS] >> THANK YOU. I WANT TO THANK COUNSEL FOR THE GUIDANCE TONIGHT. WE HAD SEVERAL VERY MEDIA ITEMS. I DID WANT TO ACKNOWLEDGE AND THANK THE GREAT WORK FROM THE VARIOUS DEPARTMENTS ON ALL THE ITEMS TODAY, BUT ESPECIALLY ON ITEM 5. NOT ONLY DID WE HAVE A LOT OF OUTSTANDING WORK FROM PUBLIC WORKS IN OUR UTILITIES DEPARTMENT, BUT THE CITY ATTORNEY'S OFFICE, THE COMMUNICATIONS AND ENGAGEMENT DEPARTMENT, AND THE CITY CLERK'S OFFICE AS WELL PLAYED HUGE ROLES IN HELPING US ON ITEM 5. I WANT TO THANK THEM FOR THAT. THANK YOU. >> CITY ATTORNEY. >> NOTHING. THANK YOU. >> CITY CLERK. WE'RE ADJOURNED. * This transcript was compiled from uncorrected Closed Captioning.