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[00:00:03]

I'M CALLING TONIGHT'S MEETING TO ORDER. PLEASE TAKE A ROLL. COUNCIL MEMBER SHIN.

[CALL TO ORDER]

PRESENT. COUNCIL MEMBER BURKHOLDER. PRESENT. COUNCIL MEMBER ACOSTA.

HERE. MAYOR PRO TEM BHAT-PATEL. HERE. MAYOR BLACKBURN.

PRESENT. ALL FIVE COUNCIL MEMBERS ARE PRESENT.

[ANNOUNCEMENT OF CONCURRENT MEETINGS]

WE HAVE AN ANNOUNCEMENT OF THE CITY OF CARLSBAD.

I'M SORRY. THE CITY COUNCIL IS SERVING AS THE CARLSBAD MUNICIPAL WATER DISTRICT BOARD OF DIRECTORS ON CONSENT CALENDAR ITEMS NUMBER THREE AND FOUR.

NEXT IS THE PLEDGE. LEILANI, WHERE ARE YOU? WILL YOU PLEASE LEAD US IN THE PLEDGE? YOUR RIGHT HAND OVER YOUR HEART. READY? BEGIN.

I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA.

AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

NEXT IS APPROVAL OF MINUTES. THE MINUTES OF THE SPECIAL MEETING HELD SEPTEMBER 11TH OF 25.

[APPROVAL OF MINUTES]

SO MOVED. SECOND. PLEASE VOTE. THAT PASSES UNANIMOUSLY.

THERE ARE NO PRESENTATIONS. CITY ATTORNEY, IS THERE ANYTHING TO REPORT OUT FROM CLOSED SESSION? THANK YOU, MAYOR. THERE WAS NO REPORTABLE ACTION.

THANK YOU. NEXT IS PUBLIC COMMENT, BUT I HAVE TO READ THE FOLLOWING.

[PUBLIC COMMENT]

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

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

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

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

THE CITY COUNCIL RECEIVED ANY ADDITIONAL NON-AGENDA PUBLIC COMMENTS AT THE END OF THE MEETING, AND IN CONFORMANCE WITH THE BROWN ACT, NO ACTION MAY OCCUR ON NON-AGENDA ITEMS. WHEN MAKING YOUR COMMENTS, PLEASE TREAT OTHERS WITH COURTESY, CIVILITY AND RESPECT.

WE WELCOME CLAPPING DURING THE CEREMONIAL PRESENTATIONS AT THE BEGINNING OF THE CITY COUNCIL MEETING.

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

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

YOU'LL HAVE THREE MINUTES. AT THE 2.5 MINUTE MARK THE LIGHT ON THE PODIUM WILL TURN YELLOW THAT'S GIVING YOU A WARNING YOU ARE DOWN TO 30S.

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 SPEAKERS. DIANE RICKER, FOLLOWED BY ETHAN.

SORRY. MA'AM, IT'S HARD TO. WOULD YOU JUST TELL US WHAT IT SAYS? IT'S HARD TO UNDERSTAND WHAT IT'S SAYING. I WAS TOLD ABOUT OVER A YEAR AGO THAT BY THE CARLSBAD POLICE DEPARTMENT THAT MY NETWORK IS OPEN.

I WENT HOME AND CONFIRMED WITH SPECTRUM THAT MY NETWORK INDEED WAS NOT OPEN.

IT TOOK ME OVER A YEAR TO FIGURE OUT THAT THE OPEN NETWORK THAT THE CARLSBAD POLICE DEPARTMENT WAS TALKING ABOUT IS A TYPE OF WI-FI HACKING ATTACK WHERE A MALICIOUS ACTOR SETS UP A FAKE WIRELESS ACCESS POINT THAT CLOSELY MIMICS YOUR HOME LEGITIMATE ONE. THE GOAL IS TO TRICK VICTIMS INTO CONNECTING TO THE FAKE NETWORK SO THE ATTACKER CAN EAVESDROP ON DATA, STEAL LOGIN CREDENTIALS, AND INJECT MALWARE.

WHY? MY QUESTION IS, WHY WOULD THAT BE THERE? IS ARE THERE HIDDEN CAMERAS IN MY APARTMENT, IN MY HOME WHERE HIDDEN CAMERAS PLANTED THERE WITHOUT MY CONSENT? IF SO, I'M LETTING YOU ALL KNOW THAT THERE ARE CHILDREN IN MY HOME.

THERE ARE CARLSBAD OTHER CHILDREN THAT COME INTO MY HOME ON A REGULAR

[00:05:05]

BASIS. I'VE ALREADY GIVEN YOU A THUMB DRIVE OF WHAT I PERCEIVE AS CREDIBLE EVIDENCE FOR THE CARLSBAD POLICE DEPARTMENT TO EXAMINE.

EVEN IF I DID A SWEEP OF MY HOME, WHICH IS $3,000.

HOW WOULD WHY WOULDN'T THEY COME BACK AND PUT THE SAME HIDDEN CAMERAS IN MY HOME AGAIN THE FIRST TIME THAT THE WAY THEY DID IT, THE SECOND THEY'RE GOING TO DO IT AGAIN. SO I'M GOING TO HAND YOU A NEW INFORMATION BECAUSE THIS IS HAPPENING EVERY DAY.

AND IF YOU DON'T BELIEVE ME, COME BY MY HOUSE, COME BY MY PLACE, LOG IN TO THOSE OPEN NETWORKS AND SEE WHAT YOU'RE.

SEE WHAT YOU SEE. COME. COME OVER. LOG INTO MY OPEN NETWORKS OR THOSE OPEN NETWORKS, I ENCOURAGE YOU, I DARE YOU COME TO MY HOME, I HAVE CHILDREN. I'M HANDING THIS TO YOU.

GOOD EVENING. MAYOR, COUNCIL MEMBERS AND NEIGHBORS. MY NAME IS ETHAN PEREZ, AND I'M A STUDENT AT LA COSTA CANYON HIGH SCHOOL HERE IN CARLSBAD. AND I'M HERE TO SPEAK IN HONOR OF NATIONAL SUICIDE PREVENTION MONTH. EVERY 40 SECOND SOMEWHERE IN THE WORLD, SOMEONE DIES BY SUICIDE.

ACCORDING TO THE WORLD HEALTH ORGANIZATION, THAT'S OVER 700,000 LIVES LOST EVERY YEAR, MORE THAN ALL WARS, NATURAL DISASTERS AND HOMICIDE DEATHS COMBINED.

BUT NUMBERS ARE EASY TO FORGET. WHAT'S HARDER TO FORGET IS AN EMPTY SEAT AT A DINNER TABLE, A PHONE THAT NEVER RINGS, AND A FRIEND WHO QUIETLY DISAPPEARED. AND HERE IN CARLSBAD, THE PAIN IS CLOSER THAN MOST PEOPLE REALIZE. ACCORDING TO SAN DIEGO COUNTY HEALTH AND HUMAN SERVICES, 17 CARLSBAD RESIDENTS DIED BY SUICIDE IN 2019.

IN BOTH 2022 AND 2023, 11 MORE LIVES WERE LOST EACH YEAR.

THAT'S NEARLY ONE NEIGHBOR, ONE CLASSMATE, ONE PARENT EVERY MONTH.

WE'RE NOT EXEMPT. WE'RE NOT IMMUNE, AND WE'RE NOT OKAY. AND THE SILENCE IS SPREADING. THE SAN DIEGO SUICIDE PREVENTION COUNCIL'S 2024 REPORT SHOWS THAT SUICIDE RATES AMONG YOUNG PEOPLE IN OUR COUNTY ROSE BY 56% IN A SINGLE YEAR.

AND AMONG OTHER ADULTS, THOSE 65 AND OLDER SUICIDE RATES ARE THE HIGHEST OF ANY AGE GROUP, WITH MORE THAN HALF INVOLVING FIREARMS. LET THAT SINK IN.

TEENAGERS WHO FEEL LIKE THEY'VE ALREADY FAILED. SENIORS WHO BELIEVE THEY'VE ALREADY BEEN FORGOTTEN.

AND IN THE MIDDLE ALL OF US TOO UNCOMFORTABLE TO ASK ARE YOU OKAY? BUT AWARENESS ISN'T ENOUGH. AWARENESS WITHOUT ACTION IS JUST OBSERVATION, AND HOPE WITHOUT HELP IS JUST A HEADLINE.

SO WHAT DO WE DO? WE TREAT MENTAL HEALTH LIKE WE TREAT BROKEN BONES, VISIBLE, URGENT AND REAL.

WE EQUIP SCHOOLS AND WORKPLACES TO NOTICE BEFORE THE BREAKING POINT.

WE SPEAK THE NAMES OF THOSE WE'VE LOST AND WE SAY TO THE LIVING, YOU MATTER.

YOU'RE NOT ALONE. WE BECOME THE KIND OF COMMUNITY WHERE SILENCE IS IN SHAME, AN REACHING OUT IS STRENGTH.

CARLSBAD IS BEAUTIFUL. WE KNOW THIS, BUT ITS TRUE BEAUTY ISN'T IN ITS VIEWS.

ITS IN ITS PEOPLE, ITS IN WILLINGNESS TO CARE, AND ITS IN ITS CHOICE TONIGHT TO SEE PAIN THAT'S OFTEN INVISIBLE.

LET THIS MONTH NOT BE A HASHTAG. LET IT BE A TURNING POINT.

LET US NOT JUST REMEMBER THE LIVES LOST. LET US FIGHT FOR THE ONES GARY GONSALVES. MAYOR BLACKBURN AND ESTEEMED COUNCIL MEMBERS. MY NAME IS DOCTOR GARY GONSALVES. I'M HERE REPRESENTING THE PALOMAR AIRPORT ASSOCIATION, AND IN THIS CAPACITY, I REPRESENT THE GENERAL AVIATION PILOTS, PRIMARILY THE GUYS THAT FLY AROUND HERE DO A LOT OF TRAINING.

ON SEPTEMBER 13TH, WE HELD OUR FOURTH ANNUAL YOUTH AVIATION DAY AND YOUTH AVIATION DAY YOU MISSED A GOOD ONE.

YOUTH AVIATION DAY HAS COME A LONG WAY FROM THE 35 SCOUTS WE STARTED WITH FOUR YEARS AGO.

YOUTH AVIATION DAY WAS ORIGINALLY A WAY TO INTRODUCE SCOUTS TO THE SCIENCE AND TECHNOLOGY OF AVIATION, WHILE ALSO INTRODUCING KIDS TO ORGANIZATIONS THAT COULD HELP THEM GET INVOLVED FURTHER WITH AVIATION FROM DAY ONE.

BECAUSE THE HARDEST THING WITH GENERAL AVIATION IS GETTING TO THE FUN SIDE OF THE FENCE.

THIS YEAR FOR YOUTH AVIATION DAY, WE HAD NEARLY 2000 PEOPLE REQUEST SPOTS FROM 35.

WE WERE ABLE TO ACCOMMODATE ALMOST A THOUSAND OF THOSE PEOPLE.

WE HAD OVER A DOZEN ORGANIZATIONS THAT CAME TOGETHER TO MAKE THIS EVENT HAPPEN, INCLUDING SPONSORSHIP FROM THE USS MIDWAY MUSEUM.

WE HAD CARLSBAD MOTORCYCLE OFFICER MICHAEL COOPER WAS OUT THERE TALKING ABOUT BIKE SAFETY.

WE HAD THE FIRE DEPARTMENT, AND WE HAD ANOTHER DOZEN ORGANIZATIONS ALL THERE TO TEACH KIDS ABOUT AVIATION, WHETHER IT WAS IN HELICOPTERS, GLIDERS, GENERAL AVIATION AIRPLANES OR LARGE AIRCRAFT.

[00:10:03]

IT HAS LITERALLY BECOME A COUNTY WIDE EVENT. PEOPLE FROM CHULA VISTA, WE EVEN HAD PEOPLE COMING FROM TEMECULA AND SOME WANTING TO COME FROM SOUTH ORANGE COUNTY.

IF OUR PROJECTIONS HOLD UP, YOUTH AVIATION DAY WILL HAVE A REQUEST FOR NEARLY 6000 SPOTS NEXT YEAR.

IT IS ALREADY THE LARGEST YOUTH AVIATION FOCUSED EVENT IN THE COUNTY.

THERE'S NOTHING THAT'S BIGGER FOR KIDS WHEN IT COMES TO AVIATION THAT IS PRIMARILY FOCUSED ON THEM.

NEXT YEAR, WE'RE GOING TO NEED MORE SIMULATORS, PROBABLY THREE MORE SIMULATORS JUST FOR SIMULATING FLIGHT, THREE MORE SIMULATORS JUST FOR TALKING TO AIR TRAFFIC CONTROL.

AND WE'LL HAVE EVEN MORE KIDS TO FLY AROUND. THIS YEAR WE FLEW A RECORD NUMBER OF CHILDREN.

THANKS TO THE YOUNG EAGLES PROGRAM WE FLEW 50 KIDS FOR YOUNG EAGLES.

WE FLEW ANOTHER COUPLE VIA THE PALOMAR OR PINNACLE AVIATION ACADEMY.

WE ALSO FLEW SOME KIDS VIA PALOMAR AVIATION. FOR ALL THE KIDS WHO VISITED ALL 20 LEARNING STATIONS, WE DREW ONE OF THEM OUT OF THE BOX, AND EVEN THE OWNER OF THE CARLSBAD JET CENTER, WHO'S BEEN SO GRACIOUS TO US, FLEW KIDS AND HIS PRIVATE JET. I HAVE NEVER FLOWN IN A PRIVATE JET.

ALL RIGHT. IT WAS A HECK OF AN EVENT, AND IT'S GOING TO KEEP ON GROWING AND KEEP ON GETTING BETTER. BROUGHT TO YOU BY YOUR LOCAL GENERAL AVIATION PILOTS AND THE PILOTS OF SAN DIEGO COUNTY. I CAN ENTERTAIN QUESTIONS IF YOU HAVE ANY.

THANK YOU. THANK YOU. NEXT IS CONSENT

[CONSENT CALENDAR]

CALENDAR. DO WE HAVE ANY SPEAKERS ON ITEMS ONE THROUGH NINE? WE DO NOT. DO WE HAVE COMMENTS OR QUESTIONS FROM COUNCIL? YES, MISS BURKHOLDER. THANK YOU. MAYOR, I DON'T HAVE ANY ITEMS TO PULL FROM THE CONSENT CALENDAR, BUT I WOULD LIKE TO REGISTER ITEM NUMBER NINE AS A NO VOTE.

AND WITH THAT I MOVE APPROVAL OF CONSENT. SECOND.

PLEASE VOTE.

THAT PASSES NOTING MISS BURKHOLDER'S NO VOTE ON NUMBER NINE.

WAS IT? ITEM NUMBER TEN, CITY MANAGER. THANK YOU.

[10. GENERAL FUND SURPLUS: APPROVAL OF FISCAL YEAR 2024-25 BUDGET CARRYFORWARD REQUESTS AND APPROPRIATION OF UNSPENT FUNDS TO BUDGET FOR FISCAL YEAR 2025-26 – 1) Adoption of a resolution approving the fiscal year 2024-25 budget carryforward requests and appropriation of funds to fiscal year 2025-26 and authorizing capital outlay purchases; and 2) Adoption of a resolution approving the restriction of General Fund reserves in fiscal year 2025-26 to fund the $7,500,000 contribution to the city’s Section 115 pension trust; and 3) Adoption of a resolution approving the use of the fiscal year 2024-25 General Fund surplus for appropriation and transfer to the city’s Solid Waste Enterprise Fund in fiscal year 2025-26. (Staff contact: Zach Korach, Administrative Services) ]

ITEM TEN IS THE APPROVAL OF FISCAL YEAR 24-25 BUDGET CARRY FORWARD REQUESTS AND APPROPRIATION OF UNSPENT FUNDS TO BUDGET FOR FISCAL YEAR 25-26. AND FOR THE PRESENTATION WILL BE FINANCE DIRECTOR.

ZACH. ZACH. GREAT. THANK YOU, MR. CITY MANAGER.

GOOD EVENING. MAYOR. MAYOR PRO TEM COUNCIL MEMBERS. I'M ZACH KORACH FINANCE DIRECTOR.

THE ITEM BEFORE YOU IS THE GENERAL FUND SURPLUS FISCAL YEAR 24-25 REVIEW.

THE USE OF THE GENERAL FUND SURPLUS IS GOVERNED BY COUNCIL POLICY NUMBER 87.

THE POLICY DEFINES GENERAL FUND SURPLUS AS ANY ACTUAL REVENUE, LESS ACTUAL EXPENDITURES IN A GIVEN FISCAL YEAR, PLUS ANY UNSPENT AND UNENCUMBERED EXPENDITURE BUDGET.

THE SURPLUS MUST FIRST BE USED TO REPLENISH ANY GENERAL FUND RESERVE DEFICIENCIES, IF APPLICABLE, AND ANY PENSION LIABILITY DEFICIENCIES IF NEEDED.

ONCE THESE ARE MET, THE CITY MANAGER IS THEN AUTHORIZED TO APPROVE THE CARRY FORWARD OF UNSPENT BUDGET FOR ANY ITEMS UP TO $100,000.

ANY ADDITIONAL PROPOSED USES OF THE SURPLUS, INCLUDING REQUESTS TO CARRY FORWARD UNSPENT BUDGET FOR ITEMS GREATER THAN $100,000, MAY BE BROUGHT FORWARD TO THE CITY COUNCIL FOR APPROVAL.

HERE WE HAVE A LOOK AT THE FISCAL YEAR 2024-25 GENERAL FUND SURPLUS.

REVENUES FOR THE FISCAL YEAR CAME IN PRELIMINARILY AT $245 MILLION.

ACTUAL EXPENDITURES OF $233 MILLION, RESULTING IN AN ACTUAL SURPLUS OF $11.7 MILLION.

THAT, COUPLED WITH THE UNSPENT AND UNENCUMBERED BUDGET AS OF JUNE 30TH, 2025 OF $14 MILLION, THE TOTAL CARRYFORWARD AUTHORITY FOR THE CITY COUNCIL IS $25.7 MILLION.

BEFORE WE GET INTO THE CARRYFORWARD REQUESTS, WE WILL ADDRESS AND HAVE A DISCUSSION ABOUT THE GENERAL FUND RESERVE AS WELL AS THE CITY'S PENSION LIABILITIES. STARTING WITH THE GENERAL FUND RESERVE, THE CITY'S REQUIREMENTS ARE LAID OUT IN CITY COUNCIL POLICY NUMBER 74, WHICH STATES THAT THE CITY COMMITS TO MAINTAINING GENERAL FUND RESERVES AT A TARGET OF 40% OF GENERAL FUND ANNUAL OPERATING EXPENDITURES.

RESERVES IN EXCESS OF THE 40% TARGET REQUIREMENT MAY BE USED FOR OTHER ONE TIME PURPOSES.

AS OF JUNE 30, 2025, THE GENERAL FUND RESERVE HAS A BALANCE OF $167 MILLION, WHICH TRANSLATES TO A RESERVE RATIO OF 69%, OR $70 MILLION IN EXCESS OF THE POLICY REQUIREMENT.

WE'LL BE DISCUSSING ALL OF THE PROPOSED USES OF THE GENERAL FUND SURPLUS THROUGHOUT THE COURSE OF THE PRESENTATION.

ASSUMING THE CITY COUNCIL WERE TO APPROVE ALL OF STAFF'S RECOMMENDATIONS, THE GENERAL FUND RESERVE WOULD END THE FISCAL YEAR AT A 61% RESERVE RATIO,

[00:15:08]

OR $50 MILLION IN EXCESS OF THE POLICY REQUIREMENT.

NEXT, WE'LL LOOK AT THE CITY'S PENSION LIABILITY STATUS.

THE INFORMATION BEFORE YOU IS FROM CALPERS MOST RECENT ACTUARIAL VALUATION REPORT.

FOR THE MOST RECENT PERIOD ENDING JUNE 30, 2024, WITH A YEAR OVER YEAR COMPARISON.

ONE OF THE KEY TAKEAWAYS HERE IS LOOKING AT ONE OF THE MIDDLE ROWS HERE, THE FUNDED RATIO.

WE CAN SEE THAT AS OF JUNE 30, 2023, THE CITY'S FUNDED STATUS OR FUNDED RATIO WAS JUST UNDER 74%, AN INCREASE TO 75.7% AS OF JUNE 30, 2024. CALPERS EXPERIENCED NEGATIVE RETURNS FOR TWO CONSECUTIVE YEARS LEADING UP TO FISCAL YEAR 23, AND THAT RESULTED IN A DRAMATIC DECLINE IN THE CITY'S FUNDED RATIO.

A SHORTFALL OF APPROXIMATELY $47 MILLION FROM THE 80% POLICY TARGET SET FORTH IN POLICY NUMBER 86.

AT THAT TIME, INSTEAD OF MAKING A ONE TIME LUMP SUM PAYMENT TO CALPERS FOR THE $47 MILLION, THE CITY COUNCIL APPROVED THE AUTHORIZATION, THE ESTABLISHMENT OF A SECTION 115 PENSION TRUST, AS WELL AS A FIVE YEAR FUNDING PLAN WHICH AIMED TO BRING THE CITY BACK INTO COMPLIANCE WITH THAT 80% FUNDED STATUS.

OVER THE COURSE OF THE FIVE YEARS TOTAL CONTRIBUTIONS AMOUNTING TO $40 MILLION ARE, HAVE BEEN, AND WILL CONTINUE TO BE PLANNED TO BE MADE UNTIL FISCAL YEAR 28, ASSUMING AN ANNUAL TARGET RATE OF RETURN OF 6.25%.

WE ANTICIPATE THAT THE CITY WILL FALL BACK INTO COMPLIANCE WITH POLICY NUMBER 86 AND THAT 80% PENSION FUNDED STATUS REQUIREMENT.

BUT SECONDLY, ALSO PART OF THE PENSION TRUST STRATEGY IS MORE LONG TERM, INSURING THAT OVER A LONGER TERM TIME HORIZON, SPECIFICALLY, 20 YEARS WE'LL BE ABLE TO ACCUMULATE SUFFICIENT FUNDS TO BE ABLE TO SUFFICIENTLY FUND A POTENTIAL DISCOUNT RATE REDUCTION THAT MAY BE IMPOSED BY CALPERS, SIGNIFICANTLY INCREASING THE CITY'S BUDGETARY NEEDS APPROXIMATELY $120 MILLION.

SHOULD CALPERS TAKE SUCH ACTION. THE LAST TWO FISCAL YEARS, FISCAL YEAR 24 AND 25, CALPERS ACTUALLY PERFORMED QUITE WELL. THEY EXCEEDED THEIR TARGETS, THEIR TARGET RATE OF RETURN IN BOTH YEARS.

AND AS A RESULT AFTER FACTORING IN THE ASSETS THAT HAVE BEEN CONTRIBUTED TO THE CITY'S SECTION 115 TRUST OUR COMBINED FUNDED STATUS IS ACTUALLY 78.6%. A CURRENT SHORTFALL FROM THE 80% REQUIREMENT OF JUST OVER $13 MILLION.

AND AS A RESULT, WE DO ANTICIPATE FALLING BACK INTO COMPLIANCE WITH THAT 80% REQUIREMENT BEFORE FISCAL YEAR 28.

THE ORIGINAL FIVE YEAR TIMELINE. NEXT, WE'LL BE TALKING ABOUT THE CARRYFORWARD REQUESTS.

HERE WE'RE SEEING THE REQUESTS THAT WERE AUTHORIZED BY THE CITY MANAGER WITHIN THE GENERAL FUND.

A TOTAL OF $624,000 AND $812,000 FOR NON-GENERAL FUND CARRYFORWARD REQUESTS.

SOME OF THE EXAMPLES OF THESE REQUESTS, WHICH ARE DETAILED IN THE EXHIBITS TO THE STAFF REPORT, INCLUDE FIRST DUE FIRE INSPECTION SOFTWARE, THE COMPLETION OF VEHICLE OUTFITTING FOR PUBLIC SAFETY, ONGOING PUBLIC ART MAINTENANCE CONTRACT COSTS, AS WELL AS IRRIGATION SYSTEM UPGRADES AT THE SAFETY TRAINING CENTER.

FOR ITEMS IN EXCESS OF $100,000 THAT DO REQUIRE THE CITY COUNCIL'S APPROVAL.

WITHIN THE GENERAL FUND A TOTAL REQUEST OF $6 MILLION.

I DO WANT TO NOTE THAT THE VAST MAJORITY OF THIS CARRYFORWARD AMOUNT PERTAINS TO THE CARLSBAD VILLAGE TRENCHING PROJECT, WHICH WAS INCLUDED IN THE ADOPTED BUDGET IN FISCAL YEAR 24 FOR $5.22 MILLION.

IN ADDITION TO THAT REQUEST LOCAL TRAFFIC SAFETY SUPPORT, ENCAMPMENT ABATEMENT ACTIVITIES, AS WELL AS ADDITIONAL OUTFITTING COSTS FOR POLICE PATROL VEHICLES.

FOR NON-GENERAL FUND CARRYFORWARD ITEMS IN EXCESS OF $100,000.

A TOTAL OF $6.2 MILLION IS BEING PRESENTED FOR CITY COUNCIL CONSIDERATION, INCLUDING FLEET AND INFORMATION TECHNOLOGY REPLACEMENTS FROM THE PREVIOUS FISCAL YEAR THAT WILL BE COMPLETED IF APPROVED DURING FISCAL YEAR 26.

AFFORDABLE HOUSING TRUST ONGOING PROPERTY ACQUISITIONS, AS WELL AS AMERICANS WITH DISABILITIES ACT OR ADA COMPLIANCE SERVICES FOR THE CITY'S WEBSITE. IN ADDITION TO THE CARRYFORWARD REQUESTS, AND AFTER EVALUATING THE GENERAL FUND SURPLUS AND THE TOTAL AUTHORITY OF JUST UNDER $26 MILLION UNDER THE CITY. CITY COUNCIL'S AUTHORITY OR DISCRETION.

STAFF ARE ALSO RECOMMENDING A ONE TIME USE OF THE GENERAL FUND SURPLUS FOR STORM WATER PROTECTION PROGRAM TRANSFER.

[00:20:05]

YOU'LL RECALL AS PART OF THE FISCAL YEAR 26 ADOPTED BUDGET, A $2 MILLION TRANSFER WAS RECOMMENDED AND ULTIMATELY APPROVED BY THE CITY COUNCIL FROM THE GENERAL FUND TO THE STORM WATER PROTECTION PROGRAM TO ENSURE CONTINUITY OF OPERATIONS ABSENT ADDITIONAL OR NEW REVENUE SOURCES WITHIN THE STORM WATER PROTECTION PROGRAM, WHICH IN RECENT YEARS HAS RELIED ON EXISTING RESERVES AND FUND BALANCE BUT HAS SINCE DWINDLED, IS RUNNING INTO A PROJECTED DEFICIT SITUATION.

ON AN ONGOING BASIS WE ANTICIPATE NO LESS THAN $4 MILLION BEING REQUIRED, LIKELY FROM THE GENERAL FUND.

HERE WE HAVE A SUMMARY OF THE RECOMMENDED GENERAL FUND BUDGET ACTIONS.

STARTING FROM THE TOP AND WORKING OUR WAY DOWN.

TOTAL CARRYFORWARD AUTHORITY AGAIN OF JUST UNDER $26 MILLION.

THE THIRD SECTION. THIRD OF FIVE ANNUAL SECTION 115 TRUST CONTRIBUTIONS TOTALING THIS YEAR OF $7.5 MILLION.

THE CARRYFORWARD REQUEST THAT WE DISCUSSED IN PREVIOUS SLIDES, AS WELL AS THE $6 MILLION TRANSFER TO STORMWATER PROTECTION PROGRAM TOTAL RECOMMENDED OR PROPOSED SPENDING IS $20.3 MILLION, RESULTING IN A REMAINING AUTHORITY OF 5.4 MILLION.

AND JUST TO REVISIT THE POTENTIAL IMPACT, IF APPROVED, ON THE GENERAL FUND RESERVE STARTING WITH THE PRELIMINARY GENERAL FUND RESERVE BALANCE OF $167 MILLION, WE DEDUCT THE PROPOSED USE OF SURPLUS OF 20.3 MILLION TO ARRIVE AT OUR ESTIMATED GENERAL FUND RESERVE BALANCE OF 146.9 MILLION, WHICH TRANSLATES TO A RESERVE RATIO OF 61%, AGAIN, NEARLY $50 MILLION IN EXCESS OF COUNCIL POLICY NUMBER 74 AND THE 40% RESERVE REQUIREMENT.

SO, IN CONCLUSION, THE PROPOSED ACTION FOR THE CITY COUNCIL TO CONSIDER IS ADOPTING RESOLUTIONS APPROVING THE CARRYFORWARD REQUESTS, AUTHORIZING THE $7.5 MILLION PENSION TRUST CONTRIBUTION, AND ALSO THE $6 MILLION TRANSFER TO THE STORMWATER PROTECTION PROGRAM WITHIN THE SOLID WASTE ENTERPRISE FUND IN THE CURRENT FISCAL YEAR.

THAT CONCLUDES THE PRESENTATION, AND I'M HAPPY TO ADDRESS ANY QUESTIONS YOU MAY HAVE.

DO WE HAVE ANY SPEAKERS? THERE ARE NO SPEAKERS.

QUESTIONS FROM COUNCIL? I'M SORRY. QUESTIONS? OKAY. MISS BHAT-PATEL. YES. THANK YOU. THANKS FOR THE PRESENTATION AND THE OVERVIEW.

JUST A QUICK QUESTION ON, THE FLEET REPLACEMENT, CITY MANAGER, COULD YOU REMIND ME THOSE WE'RE TRYING TO GO MORE TOWARDS MORE SUSTAINABLE OPTIONS AS WELL.

CORRECT? I JUST WANTED TO CONFIRM THAT. THAT'S CORRECT.

OKAY, GREAT. AND THEN IN TERMS OF THE PERCENTAGE.

SO IF WE WERE TO MOVE FORWARD WITH THE STAFF RECOMMENDATIONS, WE WOULD STILL BE AT ABOUT 61% IN RESERVE. THAT'S CORRECT. OKAY. I'M JUST TRYING TO MAKE SURE I DON'T HAVE ANYTHING ELSE.

OH, AND THEN JUST FOR CLARITY, I GET WHY, BUT I JUST WANT TO MAKE SURE.

BECAUSE IF SOMEBODY SEES THE SLIDE AND THEY DON'T GET WHY.

ON SLIDE 13, THERE'S AN ASTERISK NEXT TO THE SECTION 115 TRUST APPROPRIATE MONEY THAT WE WOULD NEED TO SET ASIDE.

IT SAYS NOT REQUIRED APPROPRIATION. SO I JUST WANTED YOU TO CLARIFY THAT IN CASE SOMEBODY IS WATCHING AND THEY'RE LIKE, WELL, WHY? WHY WOULDN'T IT BE REQUIRED? SO IF YOU COULD CLARIFY THAT AS WELL.

ABSOLUTELY. THANK YOU FOR THE QUESTION, AND I APOLOGIZE IN ADVANCE.

IF I GET TOO TECHNICAL, PLEASE LET ME KNOW. AND I CAN TRY TO SIMPLIFY IT.

THANK YOU. FOR ANY OF THE CONTRIBUTIONS THAT THE CITY MAKES TO ITS OWN SECTION 115 PENSION TRUST IT DOES NOT REQUIRE AN APPROPRIATION BECAUSE THE FUNDS TECHNICALLY ARE NOT LEAVING THE CITY.

THE WAY THAT WE DELINEATE THESE ACTIVITIES IS THROUGH THE RESTRICTION OF THE GENERAL FUND RESERVE OR GENERAL FUND BALANCE.

SO IF WE WERE TO LOOK THROUGH THE CITY'S FINANCIAL STATEMENTS, WE WOULD SEE THE UNASSIGNED FUND BALANCE WITHIN THE GENERAL FUND, WHICH IS OUR GENERAL FUND RESERVE. WE WOULD ALSO SEE A RESTRICTED FUND BALANCE, WHICH DIRECTLY TIES TO THE ASSETS THAT HAVE BEEN CONTRIBUTED TO THE SECTION 115 TRUST.

SO AS PART OF THE RESOLUTION THAT THE CITY COUNCIL IS CONSIDERING, IT IS NOT APPROPRIATING 7.5 MILLION, IT IS SIMPLY RESTRICTING THOSE FUNDS TO AUTHORIZE CONTRIBUTION INTO THE CITY'S TRUST.

GREAT. THANK YOU FOR CLARIFYING THAT. AND YEAH, I DON'T HAVE ANY OTHER QUESTIONS, JUST COMMENTS.

GOING BACK TO THAT. SO ONCE WE HAVE THE MONEY INTO THE SECTION 115 TRUST IF LATER DOWN THE ROAD PERS MIRACULOUSLY DOES SUPER WELL, THAT MONEY CAN JUST COME RIGHT BACK OUT AND GO INTO OUR GENERAL FUND.

[00:25:01]

IS THAT CORRECT? THE FUNDS. THANK YOU, MAYOR, FOR THE QUESTION.

THE FUNDS THAT HAVE BEEN CONTRIBUTED IN THE PAST AND INTO THE FUTURE WILL BE REQUIRED TO BE USED FOR PENSION ACTIVITIES.

WITH THAT SAID, YES WE CAN USE THOSE DOLLARS TO REIMBURSE THE GENERAL FUND FOR RETIREMENT RELATED COSTS THAT IT HAS INCURRED. A GREAT EXAMPLE OF THAT IS IF CALPERS WERE TO PERFORM POORLY AND OUR COSTS ARE INCREASED BY 30% AND LET'S SAY THERE'S A $10 MILLION IMPACT IN NEXT YEAR'S BUDGET AS A RESULT OF THAT, HYPOTHETICALLY.

WE CAN LOOK TO THE ASSETS THAT HAVE BEEN CONTRIBUTED TO THAT TRUST TO MITIGATE THOSE BUDGETARY PRESSURES AND ENSURE THAT WE'RE ABLE AS A COMMUNITY TO PROVIDE CRITICAL AND BASIC CORE SERVICES. DOES THAT HOLD TRUE FOR THE MONEY WE'RE PUTTING ASIDE FOR TRENCHING? REMIND ME IT WAS AT 6 MILLION? IF THAT'S JUST GENERAL FUND MONEY WITH A TAG ON IT WE CAN ALWAYS PULL THAT BACK OUT AND PUT IT IN GENERAL FUND.

IS THAT ACCURATE? THE CORRECT. THE $5.22 MILLION FOR THE VILLAGE TRENCHING PROJECT IS SIMPLY AN APPROPRIATION.

IT IS NOT A COMMITMENT OR A RESTRICTED USE OF THOSE FUNDS.

IT IS UNDER THE CITY COUNCIL'S DISCRETION TO REPURPOSE THOSE DOLLARS.

OKAY. AND OUR POLICY IS A 40% RESERVE. I KNOW WE'VE TALKED ABOUT IT MANY TIMES, BUT REMIND ME, WHAT IS THE RECOMMENDED STANDARD FOR A CITY OUR SIZE? GENERALLY SPEAKING THE GFOA THE, GOVERNMENT FINANCE OFFICERS ASSOCIATION WILL TYPICALLY RECOMMEND LEVELS BETWEEN 15 AND 20%. HOWEVER, MANY FOLKS DO BELIEVE THAT THAT'S A BIT OUTDATED.

THE PURPOSE OF A GENERAL FUND RESERVE IS TO ENSURE CONTINUITY OF CITY OPERATIONS NOT JUST DURING TIMES OF ECONOMIC UNCERTAINTY WHERE ONE OR MORE REVENUE SOURCES MAY EXPERIENCE A SLIGHT DOWNTURN BUT ALSO FOR NATURAL DISASTERS AND LARGER SCALE IMPACTS ON CITY OPERATIONS. WHEN WE LOOK TO THE COUNTY AND I APOLOGIZE, I DON'T HAVE A GRAPHIC COMPARING RESERVE DATA THROUGHOUT SAN DIEGO COUNTY I WOULD SAY ABOUT A THIRD OF JURISDICTIONS HAVE RESERVE POLICIES RANGING BETWEEN 35 AND 45%.

SO, YES, CARLSBAD IS AMONG THE HIGHEST RESERVE REQUIREMENTS IN THE COUNTY.

BUT AT THE SAME TIME, WE LOOK BACK TO THE COVID-19 PANDEMIC AND REALIZE THE IMPACTS THAT THE SHUTDOWNS HAD NOT JUST ON SALES TAX, BUT ALSO OUR HOTEL TAX. IT WAS IN THE 20, $30 MILLION RANGE THAT WE WERE IMPACTED ON A YEAR AND A HALF, TWO YEAR BASIS. AND THAT WOULD HAVE BEEN MORE THAN AN APPROPRIATE TIME OR EVENT TO CALL UPON THE GENERAL FUND RESERVE TO PROVIDE THAT TEMPORARY ASSISTANCE. OKAY. AND DID WE ALSO PUT ABOUT 10 MILLION, GIVE OR TAKE INTO ECONOMIC AND UNCERTAINTY FUND.

AGAIN, THAT'S SOMETHING THAT WE COULD TRANSFER RIGHT BACK OUT OF THAT AND INTO OUR GENERAL FUND.

IS THAT ACCURATE? THAT'S CORRECT. $9.6 MILLION IS CURRENTLY EARMARKED WITHIN THE GENERAL FUND FOR ECONOMIC UNCERTAINTY, AND THAT IS NOT INCLUDED IN THE $147 MILLION GENERAL FUND RESERVE OR THE 61% CALCULATION.

THANK YOU VERY MUCH. I APPRECIATE YOUR ANSWERS.

COMMENTS. MR. SHIN. THANK YOU ZACH. CAN WE PUT IT ON A SLIDE 14.

ALL I'M GOING TO DO RIGHT NOW AS SOON AS WE GET SLIDE 14.

THERE SHE IS. I'M JUS T GOING TO BRAG ABOUT OUR CITY BECAUSE THIS IS WHAT I LOVE ABOUT THIS.

IT MAKES I THINK EVERYONE AROUND HERE'S JOB SO MUCH EASIER.

AND I THINK THERE'S A CULTURE WITH OUR CITY WHEN IT COMES TO FINANCES, THAT WE'RE GOING TO ALWAYS ENSURE THAT WE'RE EXTREMELY CONSERVATIVE IN THE MEANS OF HOW WE USE OUR RESIDENTS AND OUR BUSINESSES TAXPAYING BASE.

SO WHEN I LOOK AND I SEE THAT WE HAVE A SURPLUS, OF COURSE, THAT'S A BEAUTIFUL THING.

SOME OF THAT IS IN RELATION TO LIKE OUR PROPERTY TAXES.

BUT THEN WE HAVE A GOOD, STRONG BUSINESS BASE HERE.

THE THING THAT'S ALSO SOMETHING THAT'S GREAT TO HIGHLIGHT IS THAT OUR USE OF SURPLUS IS IS UNDER $20 MILLION.

CORRECT? THAN WHAT WE ALLOTTED FOR MEANING WE JUST MAINTAIN SOME CONSERVATISM BASED OFF OF THAT.

THE ACTUAL SURPLUS REVENUES IN EXCESS OF EXPENDITURES WAS APPROXIMATELY $11.7 MILLION.

THE PROPOSED USE OF SURPLUS THE CITY COUNCIL IS TAKING ACTION ON THIS EVENING IS 20.3 MILLION.

YEAH. SO HAVING A HIGH RESERVE POLICY IN ALL THIS, IT'S JUST IT'S LIKE EVERY BOX WE DID, WE EXCEEDED EXPECTATIONS.

[00:30:03]

AND THEN THE END RESULT IS A $15 MILLION NET, WHICH IS, I LOOK, I BRAG BECAUSE WHEN YOU LOOK AT HOW THE CITY OF SAN DIEGO. SORRY, CITY OF SAN DIEGO AND THE COUNTY AND THE STATE AND THE FEDS PRINTING DOLLARS, IT'S LIKE WE HAVE THE TEMPLATE HERE OF WHAT TO DO RIGHT WITH GOVERNANCE.

AND THIS WAS WAY BEFORE I EVEN SHOWED UP. AND IT REALLY JUST SHOWS A CULTURE OF LEADERSHIP HERE THAT UNDERSTANDS OF WHAT IT IS THAT WE'RE DOING.

AND SO JUST INCREDIBLE AMOUNT OF KUDOS TO YOU GUYS FOR WHAT IT IS THAT YOU'RE DOING.

WHEREAS A 40% RESERVE POLICY SEEMS VERY HIGH.

WE'RE EXCEEDING IT. AND THAT JUST KIND OF GOES TO SHOW US THAT WE PROBABLY DON'T HAVE TO TINKER WITH THAT QUITE YET, BUT IT'S JUST WE HAVE SO MUCH FLEXIBILITY WITHIN OUR CITY FINANCIALLY THAT IT'S THAT I JUST GIVE PRAISE ACROSS THE BOARD.

SO GOOD JOB, CITY MANAGER AND EVERYONE BELOW HIM.

THAT'S IT. MISS BURKHOLDER, ANYTHING? MISS ACOSTA.

THANK YOU. THANKS FOR THE PRESENTATION AND THANKS TO ALL THE STAFF WHO WORKED ON IT.

I WANTED TO ECHO PRIDE AND KUDOS FOR OUR TEAM FOR THE HARD WORK THAT YOU ALL HAVE DONE.

WE TALK MANY TIMES ABOUT OUR DISCIPLINED APPROACH TO OUR BUDGET, AND I KNOW THAT'S REALLY HARD SOMETIMES WHEN WE HAVE A LOT OF DEMANDS ON US AND REQUESTS AND A LOT OF THINGS THAT WE WANT. BUT TO KEEP THAT SPECIFIC FUND IN RESERVE HAS BEEN, THE 40% RESERVE HAS BEEN IMPORTANT TO PREPARE FOR NOT JUST A RAINY DAY, BUT A FIERY DAY OR ANY OTHER DISASTER.

SO I'M PLEASED THAT WE CONTINUE TO BE REALLY TIGHT WITH OUR BUDGET, AND WHEN WE CAN SEE THAT WE HAVE ADDITIONAL FUNDS AT THIS TIME OF YEAR, WE'RE ABLE TO ALLOCATE THOSE TO REALLY IMPORTANT THINGS.

I REMEMBER THAT FIRST $10 MILLION CALPERS ALLOCATION AND WAS VERY SUPPORTIVE OF THAT.

WE HAVE TO PAY DOWN OUR PENSION LIABILITY. SO I'M GLAD THAT THAT'S HIGH ON THE LIST AND THAT WE'RE ALMOST BACK TO OUR 80% FUNDED PENSION.

AND CAN MAKE SURE THAT WE'RE PAYING OUR EMPLOYEES RETIREMENT BENEFITS AS WE HAVE COMMITTED TO DO, SO THANK YOU FOR ALL THE HARD WORK AND TO MY PREDECESSORS ON THE COUNCIL, BECAUSE OBVIOUSLY IT STARTED BEFORE I WAS HERE FIVE YEARS AGO.

FOR MANY, MANY YEARS, THE CITY LEADERSHIP HAS BEEN FOCUSED ON FISCAL DISCIPLINE.

AND AND HERE WE ARE SEEING THE FRUITS OF THEIR LABOR, SO THANKS FOR THAT, MISS BHAT-PATEL.

I'LL JUST KEEP IT SHORT AND SWEET AND SAY THANK YOU.

AND I ECHO THE SENTIMENTS OF MY COLLEAGUES. I THINK YOU KNOW, YOU CAN CLEARLY SEE WE'RE DOING A GREAT JOB.

SO REALLY APPRECIATE ALL THE WORK THAT'S BEING DONE BY OUR ENTIRE STAFF. THANK YOU. FIRST I WANT TO SAY THANKS TO ALL OF THE COUNCILS AND CITY MANAGERS BEFORE US WHO PUT TOGETHER A CITY WITH SUCH A DIVERSIFIED INCOME BEING FROM HOTEL TAXES, SALES TAXES, PROPERTY TAXES. THAT'S WHAT GOT US WHERE WE ARE.

VERY WELL THOUGHT OUT CITY, VERY CONSERVATIVE.

AND THEN IT BRINGS US TO TODAY. I ALMOST FEEL A LITTLE BIT LIKE GRANDMA AND GRANDPA WORKED VERY HARD.

AND THEN THEY DIED AND LEFT IT TO ME, OR TO US.

AND WE'RE DOING THE BEST WE CAN TO MAKE SURE WE'RE GOOD CONSERVATIVE CAREGIVERS OF THIS MONEY BECAUSE IT TOOK A LOT OF YEARS TO PUT THIS TOGETHER.

AND I LISTENED TO THE COUNCIL, AND ALTHOUGH WE DISAGREE SOMETIMES ON LITTLE ODDS AND ENDS ISSUES, WE ALL UNDERSTAND HOW IMPORTANT IT IS TO MAKE SURE THAT WE HAVE A GOOD SOURCE OF INCOME, AND WE'RE RESPONSIBLE ON HOW WE SPEND IT, AND VERY PROUD OF THE FACT THAT WE HAVE SUCH GOOD RESERVES.

BUT THEN THAT ALSO TAKES ME TO THANKING OUR STAFF BECAUSE WE, WE GO PRETTY MUCH WE FOLLOW STAFF'S RECOMMENDATIONS.

AND STAFF HAS DONE A GREAT JOB. SO THERE'S SO MANY THANK YOUS TO GO AROUND AND SO MANY PEOPLE GET CREDIT FOR THIS GREAT REPORT.

SO THANK YOU SO MUCH. IS THERE A MOTION THAT NEEDS TO BE MADE? YEAH. MOVE. ADOPTION OF ALL THREE RESOLUTIONS AND ITEM TEN.

SORRY. SECOND. PLEASE VOTE. THAT PASSES UNANIMOUSLY.

THE NEXT ONE IS AN AGREEMENT WITH KINGDOM BP, LLC FOR PROPERTY MANAGEMENT.

[11. AGREEMENT WITH KINGDOM BP LLC FOR PROPERTY MANAGEMENT SERVICES FOR THE CHESTNUT APARTMENTS AND A COMMUNITY DEVELOPMENT BLOCK GRANT LOAN NOT TO EXCEED $500,000 TO ADDRESS IMMEDIATE REPAIRS TO THE PROPERTY – 1) Adoption of a resolution authorizing the City Manager to execute an agreement for property management services and all other documents necessary to have Kingdom BP LLC manage and operate the Chestnut Apartments at 945 Chestnut Avenue; and 2) Adoption a resolution approving a forgivable loan in an amount not to exceed $500,000 in Community Development Block Grant funds to make immediate repairs at the Chestnut Apartments affordable housing project. (Staff contact: Mandy Mills and Nicole Piano-Jones, Community Services) ]

IS THERE ANYBODY ON THE COUNCIL WHO NEEDS A PRESENTATION ON THIS? MISS BHAT-PATEL? NO. CITY MANAGER, WOULD IT BE APPROPRIATE IF WE WENT DIRECTLY TO A VOTE? THAT'S THE COUNCIL'S DESIRE. OF COURSE. MOTION, PLEASE.

MOVE. ADOPTION OF BOTH RESOLUTIONS IN ITEM 11.

SECOND. PLEASE VOTE. THAT PASSES UNANIMOUSLY.

MAYOR, FOR THE RECORD, THERE WERE NO SPEAKERS ON THIS ITEM.

[00:35:03]

OKAY. THANK YOU. THAT BRINGS US TO CLOSING COMMENTS, MR.

[COUNCIL COMMENTARY AND REQUESTS FOR CONSIDERATION OF MATTERS]

SHIN. YES, I GOT ONE. SO DURING OUR RECESS I HAD THE DISTINCT PLEASURE OF READING THE ENTIRE CITY ORDINANCE BECAUSE I THINK IT'S GREAT READING. IT'S TIME TO GET A HOBBY. YEAH, I DON'T HAVE ONE YET, BEING RETIRED.

SO I KIND OF WENT LINE BY LINE, TO BE HONEST WITH YOU.

AND THERE WERE A LOT OF THINGS THAT I KIND OF HIGHLIGHTED TO THE CITY MANAGER AND ATTORNEY ABOUT QUESTIONS I HAD IN CHANGES.

THIS IS GOING TO BE KIND OF DRY AS A MARTINI.

THE ONE I'M KIND OF TEEING UP HERE RIGHT NOW, BUT IT HAS BEEN A THORN SINCE MY CAREER IN MUNICIPALITY.

SO I'LL READ KIND OF WHERE I'M AT HERE. SO IN APRIL, CITY COUNCIL RECEIVED A PRESENTATION FROM THE CITY'S INTERNAL AUDIT MANAGER DETAILING HIS WORK PLAN FOR THE UPCOMING YEAR, INCLUDING THE COMPLETION OF EXISTING AUDITS, AS WELL AS A LIST OF NEW ENGAGEMENTS.

THE WORK PERFORMED BY OUR INTERNAL AUDITOR IS AN IMPORTANT ONE, AS IT PROVIDES THE COUNCIL WITH AN INDEPENDENT AND OBJECTIVE SERVICE TO HELP IMPROVE CITY OPERATIONS. AMONGST THE RESPONSIBILITIES OF THE INTERNAL AUDITORS TO IDENTIFY OPPORTUNITIES FOR IMPROVEMENT, AS WELL AS RECOMMENDATIONS TO HELP MAKE OUR ALREADY HIGHLY EFFICIENT AND EFFECTIVE LOCAL GOVERNMENT BE EVEN MORE EFFICIENT AND EFFECTIVE.

ONE OF THE ITEMS OF THE INTERNAL AUDITORS LIST OF ACTIVITIES IS COMPLETION OF THE PROCUREMENT AUDIT.

SO FOR ME, AS A FORMER BUSINESS OWNER THERE'S ALWAYS PROCESSES OF HOW TO DO, PURCHASING, BEING ON SANDAG.

IT REMINDED ME AS WELL. THERE WAS IN ONE OF OUR CONVERSATIONS, JUST WHAT IT TAKES TO GET A CASE OF WATER IS LIKE MULTIPLE STEPS.

MY TIME IN THE FIRE SERVICE WITH ANOTHER MUNICIPALITY, IT WAS A THORN OF MINE TO SEE THINGS GO BACK AND FORTH AND WHAT HAVE YOU.

SO IT'S MY HOPES THAT THE INTERNAL AUDITOR SHARES HIS FINDINGS WITH THE COUNCIL, THAT THE REPORT ALSO INCLUDES RECOMMENDATIONS FOR THE CITY COUNCIL RELATED TO EFFICIENCY IMPROVEMENTS TO OUR PROCUREMENT PROCESS.

THAT MAY INCLUDE WAYS TO SPEED UP PROCUREMENT, A REVIEW OF THE REQUIREMENTS FOR HOW MANY TIMES A SINGLE PROCUREMENT ACTION MUST RETURN TO THE CITY COUNCIL BEFORE IT CAN THEN PROCEED, AND WHETHER EXPENDITURE LIMITS LISTED IN OUR MUNICIPAL CODE IS CONSISTENT WITH CURRENT BEST PRACTICES FOR GOVERNMENTS OF OUR SIZE. SO MY MINUTE MOTION TONIGHT IS TO ASK THE CITY MANAGER TO INCLUDE WITH THE INTERNAL AUDITOR'S REPORT ON PROCUREMENT TO PROPOSE EFFICIENCY IMPROVEMENTS TO OUR PROCUREMENT PROCESS THAT ARE CONSISTENT WITH AUDIT RECOMMENDATIONS AND GOVERNMENT BEST PRACTICE STANDARDS.

SECOND. THANK YOU. OKAY. I HEARD A MOTION. WAS THERE A SECOND? COUNCIL MEMBER BURKHOLDER. MS. BURKHOLDER, ANY DISCUSSION? PLEASE VOTE. PASSES UNANIMOUSLY. THANK YOU, MR. SHIN. MISS BURKHOLDER. YES. THANK YOU. MAYOR.

I JUST WANT TO SHOUT OUT TO MISS GOMEZ'S TEAM, BECAUSE WE DID RECENTLY RECEIVE A COUNCIL MEMORANDUM, WHICH IS A PUBLIC DOCUMENT THAT INCLUDES 44 PARKING SPACES IN THE VILLAGE AND BARRIO.

PARKING IS PROBABLY THE NUMBER ONE COMPLAINT I GET.

SO NOW THEY HAVE DILIGENTLY WORKED BECAUSE I PROBABLY COMPLAIN ABOUT IT ALL THE TIME AND NOW WE HAVE 44 SPOTS.

SO THANK YOU. MISS GOMEZ AND YOUR TEAM. I DO HAVE A MOTION.

I WOULD LIKE TO TALK ABOUT HERE THE REGULATION OF RECOVERY BASED GROUP HOMES BY LOCAL GOVERNMENTS IS LIMITED, AND CITIES OFTEN LIKE CARLSBAD, MUST LOOK TO THE STATE WHEN IT COMES TO GUIDELINES OF REGULATION OF THOSE SOBER LIVING HOMES.

FROM TIME TO TIME, THE CITY COUNCIL RECEIVES COMPLAINTS OR CONCERNS REGARDING GROUP HOMES, SPECIFICALLY SOBER LIVING HOMES, WHICH ARE RECOVERY FOCUSED LIVING THAT HELP RESIDENTS WITH THEIR ADDICTION.

THESE LOCATIONS ARE OFTEN FOUND IN SINGLE FAMILY HOMES IN EXISTING NEIGHBORHOODS.

IN CARLSBAD, WE HAVE A NUMBER OF THESE HOMES IN THE NEIGHBORHOODS THROUGHOUT THE CITY, WITH SOME LOCATED CLOSE TO ONE ANOTHER.

I WOULD LIKE TO PROPOSE A MINUTE MOTION TO ASK THE CITY, THE CITY'S LEGISLATIVE SUBCOMMITTEE, TO PLACE ON A FUTURE AGENDA A DISCUSSION ABOUT GROUP HOMES AND TO CONSIDER POTENTIAL LEGISLATIVE PROPOSALS THAT COULD BE SHARED WITH OUR REPRESENTATIVES IN THE STATE LEGISLATURE TO HELP COMMUNITIES MANAGE GROUP HOMES AND HAVE MORE OF A ROLE IN THE LOCATION OF THESE HOMES.

SECOND. DISCUSSION. MISS ACOSTA. THANK YOU, I KNOW THAT WE TALKED ABOUT THIS AT OUR LAST LEGISLATIVE SUBCOMMITTEE, AND WE TALKED ABOUT LEGISLATION. WE'VE ALREADY TAKEN POSITIONS.

I'M NOT SURE THAT THIS IS NEEDED SINCE I BELIEVE IT'S ALREADY IN OUR LEGISLATIVE PLATFORM.

WE ALREADY TAKE POSITIONS ON RELEVANT LEGISLATION, AND WE HAVE THE ABILITY AS A COMMITTEE TO BRING IN SPEAKERS WHENEVER WE WANT.

[00:40:04]

SO I DON'T KNOW WHAT'S DIFFERENT IN THE MOTION.

I'M SUPPORTIVE OF THE CONCEPT, BUT I'M TRYING TO FIGURE OUT WHAT'S DIFFERENT IN THE MOTION FROM WHAT WE ALREADY DO AND ALREADY ARE ALLOWED TO DO.

THANK YOU FOR THAT. WHEN WE HAD IT IN LEGISLATIVE SUBCOMMITTEE, IT WAS NOT AGENDIZED.

AND I KNOW YOU HAD MENTIONED THAT YOU HAVE BEEN WORKING ON SOBER LIVING HOME ISSUES, AND I WANTED TO BE ABLE TO CONTACT AND TALK TO YOU ABOUT IT.

AND WE HAVE TO DO THAT IN PUBLIC TO SEE WHERE WE ARE WITH THAT.

AND, YOU KNOW, MAYBE GET THE REPORT FROM MR. HABER ABOUT SPECIFICALLY WHAT LEGISLATION AND TRACKING THAT A LITTLE BIT BETTER SO THAT I'M ON THE SAME PAGE WITH YOU ESSENTIALLY.

AND THIS IS THE WAY TO GET THAT DONE, IF THAT IS NEEDED.

THAT'S FINE. OKAY. MR. SHIN. YEAH, YOU KNOW, I'LL SUPPORT THE MOTION TO MOVE FORWARD TO AT LEAST GET A DISCUSSION.

I WILL SAY I'VE BEEN IN THIS INDUSTRY, AND I JUST WANT TO CAUTION WHERE I UNDERSTAND THAT THERE CAN BE, LIKE, A NUISANCE OF NEIGHBORS IN REGARDS TO THIS, BUT TO BE VERY, VERY, VERY CAUTIOUS THAT THE FACT THAT YOU'RE DEALING WITH PEOPLE WITH DISABILITIES. AND SO WHEN WE'RE, IT'S A VERY FINE LINE OF WHAT IT IS THAT WE'RE GOING TO SAY OUT OF OUR MOUTHS ABOUT THOSE PEOPLE THAT ARE SUFFERING THROUGH ADDICTION AND RECOVERY. AND SO LET'S JUST MAKE SURE THAT AS WE'RE LEARNING THE PROCESS, THAT WE'RE NOT SAYING ANYTHING INFLAMMATORY TO PEOPLE THAT ARE GOING THROUGH THIS.

SO THANK YOU, MR. SHIN. I ACTUALLY WORK IN THIS SPACE.

I WORK WITH RECOVERY AND PEOPLE IN RECOVERY AND ADDICTS.

AND SO I'M VERY SENSITIVE TO THAT ISSUE THAT YOU JUST BROUGHT UP.

THANK YOU. THAT'S AN EXCELLENT POINT, MR. SHIN.

THANK YOU. I WAS LISTENING CAREFULLY. I WAS CRINGING UNTIL I HEARD YOU SAY TO BRING IT TO THE LEGISLATIVE SUBCOMMITTEE, AND I'M COMPLETELY IN SUPPORT OF THAT, SO PLEASE VOTE.

PASSES UNANIMOUSLY. THANK YOU. IS THERE ANYTHING ELSE, MISS BURKHOLDER? MISS ACOSTA. OKAY, GREAT. THANK YOU. FOR MY ASSIGNMENTS.

THE BIG ONE THAT I HAVE BEEN WORKING ON OUTSIDE OF HERE HAS BEEN THE SAN DIEGO COUNTY WATER AUTHORITY.

WE HAVE A BIG BOARD MEETING THIS THURSDAY. AS USUAL.

IT'S AT THE SAN DIEGO COUNTY WATER AUTHORITY HEADQUARTERS IN KEARNY MESA.

IT STARTS AT 9 A.M. WITH THE COMMITTEE MEETINGS.

THE ACTUAL BOARD MEETINGS AT 2, WE USUALLY GET OUT AT 5.

SO IT'S BASICALLY A 9 TO 5 MEETING. IT'S ALL STREAMED ONLINE.

PEOPLE CAN PARTICIPATE THROUGH THE WEBSITE ON ZOOM OR COME IN PERSON OR SEND EMAILS.

BUT LAST WEEK I WAS ABLE TO JOIN THE SAN DIEGO COUNTY WATER AUTHORITY MEMBERS OF THE SAN DIEGO COUNTY WATER AUTHORITY BOARD AND GUESTS WHO JOINED METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA FOR A TOUR OF HOOVER DAM AND THE COLORADO RIVER PROJECT.

SO WE LEARNED SO MUCH THAT REALLY HELPS INFORM THE THINGS THAT WE HAVE READ AND REPORTS THAT WE HAVE RECEIVED.

SO I REALLY APPRECIATED THE TOUR AND BEING ABLE TO SEE THINGS AND ASK QUESTIONS OF THE ENGINEERS AND THE PRACTITIONERS IN WATER IN PERSON, AND I LOVE WHEN I GET THE OPPORTUNITY TO DO THAT AT OUR CITY TOO, BECAUSE I THINK IT REALLY HELPS.

I KNOW THAT THAT IS SOMETHING THAT WE ALL TRY TO DO, ESPECIALLY WITH PUBLIC WORKS, TO SEE IN PERSON WHAT IT IS THAT WE ARE VOTING ON, ESPECIALLY WHEN WE'RE MAKING BUDGET ALLOCATION DECISIONS.

I'VE ALSO DONE A FIRE AND POLICE RIDE ALONG. THEY'RE REALLY COOL TO BE ABLE TO SEE THE THINGS THAT WE DO AS A CITY TO PROTECT OUR PEOPLE.

SO THANK YOU. THAT'S IT. MISS BHAT-PATEL? YES.

THANK YOU. SO OVER THE PAST, I GUESS COUPLE OF WEEKS I HAD THE OPPORTUNITY TO ATTEND AN EVENT THAT IONIS PHARMACEUTICALS HAD PUT TOGETHER WITH THE CHALLENGED ATHLETES FOUNDATION.

THEY DO A LOT OF GREAT WORK IN THE COMMUNITY, HAVE GROWN QUITE A BIT OVER THE PAST FEW YEARS, BUT ALSO JUST REALLY COOL TO SEE WHAT THEY'RE DOING TO SUPPORT FOLKS THAT WANT TO STILL PARTAKE IN DIFFERENT TYPES OF SPORTS.

AND FOR THAT IT WAS THE SURF, THEY WERE SURFING.

SO THEY GOT A CHANCE TO GO OUT AND SURF. WITH NCTD, WE HAD OUR BOARD MEETING AND I'LL ROUND OUT NCTD.

WE HAD AN EMPLOYEE ANNIVERSARY EVENT LAST WEEK.

WE WILL BE CELEBRATING 50 YEARS FOR THE AGENCY.

SO THERE'S A PUBLIC CELEBRATION THIS UPCOMING SATURDAY AND A PRESS CONFERENCE.

SO THERE WILL BE A JUST FOR THE PUBLIC TO COME OUT AND ENJOY, GET TO MEET SOME OF THE FOLKS THAT HAVE SERVED IN THE PAST AND PRESENT.

IT'S REALLY COOL BECAUSE THERE ARE SOME FOLKS THAT HAVE SERVED FOR 30 PLUS YEARS AT THE AGENCY AND HAVE DRIVEN DIFFERENT ROUTES.

SO IT'S REALLY, REALLY GREAT TO BE ABLE TO MEET FOLKS IN THAT CAPACITY.

AND FOR SAN DIEGO NORTH EDC, I HAD THE OPPORTUNITY TO ATTEND THEIR MANUFACTURING 101 SERIES.

THEY'VE BEEN PUTTING THAT ON THROUGHOUT THE YEAR AT DIFFERENT COMPANIES THROUGHOUT NORTH COUNTY, JUST TO BE ABLE TO MEET WITH FOLKS IN DIFFERENT INDUSTRIES AND HEAR FROM THEM WHAT SOME OF THE CHALLENGES ARE IN THE ECONOMIC SPACE.

AND JUST AS ELECTEDS WHAT WE CAN DO TO CONTINUE TO HELP SUPPORT THEM AND AS OBVIOUSLY AS AGENCIES, WHAT WE CAN CONTINUE TO SUPPORT TO WORK WITH THEM.

AND THEN THIS UPCOMING WEEK, I HAVE CLEAN ENERGY ALLIANCE ON THURSDAY.

[00:45:04]

AND THEN JUST WANTED TO MENTION, I KNOW LAST WEEK WAS CONSTITUTION WEEK AND NATIONAL VOTER REGISTRATION DAY.

SO IF YOU AREN'T ALREADY REGISTERED TO VOTE, JUST PUTTING A PLUG OUT THERE TO MAKE SURE TO GET REGISTERED. ALL RIGHT. THANKS. I'M GOING TO TRY SOMETHING KIND OF NEW. I'M GOING TO TALK A LITTLE BIT ABOUT I CAUGHT SOMEONE DOING SOMETHING GREAT IN CARLSBAD.

AND THIS IS GOING TO BE MY FIRST TRY AT THIS.

I WENT TO A GROCERY STORE NOT TOO LONG AGO AND MET A WOMAN WHO WAS JUST FULL OF LIFE AND HAVING FUN, AND IN FACT, SHE WAS SO NICE AND CHEERY AND APPROACHABLE THAT I SAW A LOT OF THE EMPLOYEES STOP WHAT THEY WERE DOING AND COME AND TALK TO HER. AND I FOUND OUT THAT THE REASON SHE WAS SO NICE, OTHER THAN IT'S HER PERSONALITY, IS SHE UNEXPECTEDLY LOST HER DAUGHTER A COUPLE OF YEARS PRIOR.

AND I THINK THE WAY SHE WAS DEALING WITH THAT LOSS WAS TO BE EXTRA SPECIAL, CHEERY WITH EVERYBODY AND MAKING EVERYBODY'S DAY BETTER.

SO I WANT TO SAY THANK YOU TO LINDA LOU BARNETT FOR MAKING MY DAY BETTER AND MAKING ME LEAVE THAT GROCERY STORE SMILING AND LOOKING FORWARD TO SHARING THAT STORY WITH THE REST OF THE COUNCIL. CITY MANAGER? DON'T THINK I CAN IMPROVE ON THAT.

THANK YOU, MAYOR. CITY ATTORNEY. NOTHING. THANK YOU.

CITY CLERK. NOTHING. WE'RE ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.