[CALL TO ORDER] [00:00:05] CLOSE ENOUGH TO FIVE O'CLOCK, I'M CALLING TONIGHT'S MEETING TO ORDER. PLEASE TAKE A ROLL AND TURN UP THE MICROPHONES JUST A TAD. COUNCIL MEMBER SHIN. PRESENT. COUNCIL MEMBER BURKHOLDER. PRESENT. COUNCIL MEMBER ACOSTA. HERE. MAYOR PRO TEM BHAT-PATEL. HERE. MAYOR BLACKBURN. PRESENT. [ANNOUNCEMENT OF CONCURRENT MEETINGS] ALL FIVE COUNCIL MEMBERS ARE PRESENT. I HAVE TO MAKE THE FOLLOWING ANNOUNCEMENT. THE CITY COUNCIL IS SERVING AS THE CARLSBAD MUNICIPAL WATER DISTRICT BOARD OF DIRECTORS. ON CONSENT CALENDAR, ITEMS NUMBER SIX, AND PUBLIC HEARING, ITEM NUMBER TEN. NEXT IS THE PLEDGE. CITY ATTORNEY, PLEASE LEAD US IN THE PLEDGE. 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. [APPROVAL OF MINUTES] NEXT IS APPROVAL OF THE MINUTES. THE MINUTES OF THE REGULAR MEETING HELD MARCH 10TH OF 26. SO MOVED. SECOND. PLEASE VOTE. PASSES UNANIMOUSLY. [PRESENTATIONS] NEXT IS PRESENTATIONS. I INVITE COUNCIL MEMBERS PRIYA BHAT-PATEL AND KEVIN SHIN TO MAKE THE PRESENTATION. THANK YOU, MAYOR. AT THIS MOMENT, COULD I HAVE MS. POLLY UKE APPROACH THE PODIUM? THIS IS FOR THE ASIAN AMERICAN AND PACIFIC ISLANDER HERITAGE MONTH PROCLAMATION. AND JUST TO LET YOU GUYS KNOW, THERE IS A LEGEND IN THE ROOM WHO IS MS. PAULA YU. WHEN I CREATED THE ASIAN PACIFIC ISLANDER FESTIVAL, THERE WAS ABOUT 10 PEOPLE WHO TOLD ME TO CALL HER FIRST. SO MAKE SURE I GOT THE GOOD ADVICE. SO BOTH MAYOR PRO TEM BHAT-PATEL AND I WILL READ THE PROCLAMATION, AND THEN THE FLOOR IS YOURS. SO THIS IS THE PROCLAMATION FOR THE ASIAN AMERICAN AND PACIFIC ISLANDER HERITAGE MONTH, MAY 2026. WHEREAS FOR OVER A CENTURY, ASIAN AMERICANS, NATIVE HAWAIIANS, AND PACIFIC ISLANDER PEOPLE HAVE CONTRIBUTED TO ALL AREAS OF LIFE, INCLUDING GOVERNMENT, BUSINESS, ARTS AND SCIENCES, MEDICINE, EDUCATION, LAW ENFORCEMENT, AND THE MILITARY. AND WHEREAS ASIAN AMERICAN AND PACIFIC ISLANDER HERITAGE RECOGNITION IN THE UNITED STATES BEGAN IN 1978 AND WAS MADE INTO A MONTH-LONG AWARENESS EVENT IN 1992. TO HONOR OUR DYNAMIC IMMIGRANT AND NATIVE COMMUNITIES. WHEREAS THE OFFICIAL 2026 THEME OF ASIAN AMERICAN AND PACIFIC ISLANDER HERITAGE MONTH IS POWER IN UNITY, STRENGTHENING COMMUNITIES TOGETHER, AND EMPHASIZES THE IMPORTANCE OF COLLECTIVE ACTION, SHARING STORYTELLING, AND COMMUNITY BRIDGE BUILDING. WHEREAS ASIAN AMERICAN AND PACIFIC ISLANDER CULTURES HAVE SHARED THEIR STORIES AND TRADITIONS WHILE REPRESENTING THEIR COMMUNITIES THROUGH PUBLIC SERVICE AND ADVOCACY, AND WHEREAS THE CITY OF CARLSBAD IS COMMITTED TO CELEBRATING THE IMPORTANCE OF INCLUSION AND TO COMMEMORATE THE VITAL CONTRIBUTIONS, SACRIFICES, AND ACHIEVEMENTS THAT ASIAN AMERICANS, NATIVE HAWAIIANS, AND PACIFIC ISLANDER PEOPLE HAVE MADE, THEREFORE I, PRIYA BHATT PATEL, MAYOR PRO TEM, AND COUNCILMEMBER KEVIN SHIN, ON BEHALF OF THE MAYOR AND CITY COUNCIL, DO PROCLAIM THE MONTH OF MAY 2026 AS ASIAN AMERICAN AND PACIFIC ISLANDER HERITAGE MONTH IN THE CITY OF CARLSBAD. AND I JUST WANT TO SHARE, MS. YU, BEFORE YOU GO, THAT THIS IS... SO EXCITING TO ALWAYS CELEBRATE THIS AND I SEE SO MANY STUDENTS HERE SO I HOPE THAT YOU'RE GETTING A CHANCE AND A GLIMPSE INTO THE ANHPI CULTURE. I KNOW THAT THERE ARE DAYS CELEBRATED AT ALL OF OUR SCHOOLS THROUGHOUT THE CITY OF CARLSBAD, MULTICULTURAL DAYS THAT GIVE A GLIMPSE INTO MANY OF THE DIFFERENT CULTURES INCLUDING THE ANHPI CULTURE SO THANKFUL TO OUR SCHOOL DISTRICT FOR YOU KNOW SUPPORTING THAT CAUSE. AND REALLY EXCITED TO CELEBRATE WITH YOU, AND I'LL GO AHEAD AND PASS IT OFF TO YOU. THANK YOU, THANK YOU. DEAR MAYOR AND THE MEMBERS OF THE CITY COUNCIL, I AM TRULY HONORED TO RECEIVE THIS ASIA-PACIFIC ISLANDER PROCLAMATION FROM THE CITY OF CARLSBAD, A COMMUNITY THAT MY FAMILY AND MYSELF HAVE PROUDLY CALLED HOME FOR THE PAST 25 YEARS. CARLSBAD IS A CITY THAT EMBRACES DIVERSITY, EDUCATION, AND COMMUNITY SPIRIT THROUGHOUT MY YEARS HERE. I HAVE ALWAYS BELIEVED IN THE IMPORTANCE OF HELPING THE YOUTH LEARNING FROM DIFFERENT CULTURES, BROADEN THEIR PERSPECTIVES, AND BUILD FRIENDSHIPS ACROSS BORDERS. IN TODAY'S WORLD, CULTURAL UNDERSTANDING IS MORE IMPORTANT THAN EVER. I HAVE BEEN FORTUNATE TO SUPPORT YOUTH CULTURAL EXCHANGE PROGRAMS THROUGH MY INVOLVEMENT WITH THE CARLSBAD SISTER CITY AMBASSADORS, SAN DIEGO YOUTH SYMPHONY, AND MANY EDUCATIONAL AND MUSICAL EXCHANGES. INITIATIVE BETWEEN UNITED STATES AND ASIA EDUCATION, SPORT AND CULTURAL PROGRAMS, I HAVE WITNESSED HOW YOUNG PEOPLE GROW IN CONFIDENCE, COMPASSION AND GLOBAL AWARENESS. [00:05:01] I'M ALSO PROUD TO SUPPORT THE EFFORT OF THE CARLSBERG SISTER CITY AMBASSADOR AS WE CONTINUE TO SEEK OUR NEW SISTER CITY RELATIONSHIP IN ASIA AND AROUND THE WORLD. THROUGH THIS PARTNERSHIP, WE HOPE TO EXPAND OPPORTUNITIES IN BUSINESS, EDUCATION, YOUTH EXCHANGE AND CULTURAL UNDERSTANDING FOR THE CITIZENS OF CARLSBERG. I FEEL GRATEFUL TO CONTRIBUTE TO THE WONDERFUL COMMUNITY AND TO HELP CONNECT PEOPLE THROUGHOUT THE CULTURAL EXCHANGE PROGRAM. THANK YOU AGAIN AND I HOPE TO RECEIVE CONTINUED SUPPORT FROM THE CITY AND THE CITIZENS OF CARLSBAD. THANK YOU. PAULI, WILL YOU PLEASE JOIN US FOR A QUICK PHOTOGRAPH? [PUBLIC COMMENT] NEXT IS PUBLIC COMMENT. I HAVE TO READ THE FOLLOWING. 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 THIS MEETING IS ON THE FRONT PAGE OF THIS AGENDA. CITY COUNCIL RECEIVED NON-AGENDA PUBLIC COMMENTS FOR A TOTAL OF 15 MINUTES AT THE BEGINNING OF THE MEETING. 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 ANY NON-AGENDA ITEMS. WHEN MAKING YOUR COMMENTS, PLEASE TREAT OTHERS WITH COURTESY, CIVILITY, AND RESPECT. WE WELCOME CLAPPING DURING THE CEREMONIAL PRESENTATIONS AT THE BEGINNING OF THE CITY COUNCIL MEETING. HOWEVER, WE ASK THAT YOU REFRAIN FROM CLAPPING DURING THE BUSINESS SECTION OF THE MEETING. STARTING WITH THE NON-AGENDA PUBLIC COMMENT. THIS WILL HELP MAKE SURE THAT THE PEOPLE'S BUSINESS CAN BE CONDUCTED EFFICIENTLY AND THAT THIS CHAMBER IS A PLACE WHERE 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 TWO-AND-A-HALF-MINUTE MARK, THE LIGHT WILL TURN YELLOW, GIVING YOU NOTICE THAT YOU'RE DOWN TO THE LAST 30 SECONDS. I'VE ASKED THE CLERK TO TURN OFF THE MICROPHONE AT THE CONCLUSION OF THE THREE MINUTES. THAT WAY EVERYBODY GETS EXACTLY THE SAME AMOUNT OF TIME TO SPEAK. PLEASE CALL THE FIRST SPEAKER. GLENN BERNARD. THERE WAS AN AGENDA ITEM DEALING WITH DISCRIMINATION AND BULLYING, AND I WANT TO CONTINUE ALONG THAT THEME. WHEN DID THINGS IN AMERICA BECOME EXTREMELY HATEFUL? AS A PERSON WHO WAS A MEMBER OF NO POLITICAL PARTY FOR MOST OF MY LIFE, I CAN SAY THAT WHEN THE REPUBLICANS DECIDED TO IMPEACH MR. CLINTON FOR THE PERJURY CONCERNING WHAT HE DID WITH MONICA LEWINSKY, DEMOCRATS STARTED HATING REPUBLICANS THEN AND THERE, AND IT HAS NOT ABATED, AND IT HAS GOTTEN WORSE. COMMENT FROM NO POLITICAL PARTY AT THAT TIME. SO LET'S DO A COMPARISON BETWEEN THE TWO LAWYERS FROM ILLINOIS THAT BECAME PRESIDENTS. MR. OBAMA BOUGHT, AFTER BEING PRESIDENT, MR. OBAMA BOUGHT A MULTI-MILLION DOLLAR WATERFRONT ESTATE ON BARTHOR'S VINEYARD DURING 2019. 30 ACRES NEAR EDGERTON GREAT POND, THE 7,000 SQUARE FOOT HOME. FEATURES SEVEN BEDROOMS, [00:10:01] MULTIPLE FIREPLACES, A POOL, AND A PRIVATE BEACH. DO YOU THINK IF MR. LINCOLN HAD SURVIVED THAT HE WOULD BE LIVING, WOULD HAVE LIVED LIKE THAT? ANOTHER THING ABOUT MR. LINCOLN, IN HIS SECOND ACCEPTANCE SPEECH, HE USED THE PHRASE, WITH MALICE TOWARD NONE AND CHARITY TOWARDS ALL. CHARITY TOWARDS ALL. FAST FORWARD 150 YEARS TO A WHITE HOUSE CORRESPONDENT'S DINNER. WHERE MR. OBAMA WAS THE PRESIDENT AND MAYBE THE RICHEST GUY IN THE ROOM AND RICH PEOPLE WERE HATED BY THEN WAS MR. TRUMP AND THE PRESIDENT OBAMA RIDICULED HIM. I DON'T THINK THAT WAS MALICE TOWARDS NONE AND CHARITY FOR ALL. THEN, ABOUT A YEAR LATER, TO SHOW HIS DISDAIN FOR THE WEALTHY PEOPLE IN AMERICA AND THIS BUILDS UP TO WHAT'S GOING ON TODAY. WHERE WEALTHY PEOPLE ARE HAVING THEIR PROPERTY CONFISCATED BY GOVERNMENT FOR HAVING TOO MUCH WEALTH. SO ANYWAY, ABOUT A YEAR AND A HALF AFTER RIDICULING TRUMP AT THAT DINNER, OBAMA DID THAT SPEECH WHERE HE SAID TO THE WEALTHY PEOPLE IN THE AUDIENCE, YOU DIDN'T BUILD THAT WITH REGARDS TO THE ROADS AND THE HIGHWAYS WHERE GOVERNMENT CONTRACTS OUT. WITH THE COMPANIES THAT OWN THE HEAVY EQUIPMENT TO DO THAT STUFF. SO EVEN THOUGH OBAMA IS SAYING YOU DIDN'T BUILD THAT TO THE CORPORATIONS THAT WERE IN HIS AUDIENCE, THEY DID IN FACT BUILD IT. THESE ARE THE THINGS THAT HAVE LED TO THE HATE THAT WE HAVE IN AMERICA. HATRED OF WEALTHY PEOPLE IS AS WRONG AS HATRED OF ANY OTHER GROUP OF PEOPLE. MIKE BORRELLO. SO MY NAME IS MIKE BORRELLO. I'M A PETITIONER IN BORRELLO V. THE CITY OF CARLSBAD. LAST YEAR, AFTER THE CITY REFUSED TO ENGAGE MY REPEATED PUBLIC HEALTH CONCERNS, I FILED A PETITION FOR WRIT OF MANDAMUS, PRO PER IN SUPERIOR COURT, VISTA. I RISE TO ADDRESS A SERIOUS MORAL AND ETHICAL CONFLICT OF INTEREST. ALTHOUGH LEGAL AND CODIFIED UNDER CARLSBAD MUNICIPAL CODES, THE SAME FIVE ELECTED OFFICIALS HERE WHO APPROVED NEW DEVELOPMENT, HOUSING PROJECTS, AND ECONOMIC GROWTH THAT DRIVE UP WATER DEMAND ALSO SIT AS THE BOARD OF DIRECTORS FOR THE CARLSBAD MUNICIPAL WATER DISTRICT, A MUNICIPAL CORPORATION. YOU MIGHT CLAIM YOUR DUAL ROLES SAVE MONEY, BUT YOU CAN EACH REACH UP TO $300 PER MONTH. SPECIFICALLY FOR SERVING AS ON THE WATER BOARD. THE REAL REASON IS TO MAINTAIN FULL UNCHECKED POWER OVER WATER SUPPLY, RECYCLED WATER EXPANSION, PUBLIC HEALTH SAFEGUARDS, AND RATE SETTING, BASICALLY A MONOPOLY. ON APRIL 22, 2025, YOU VOTED FOR UNPRECEDENTED WATER RATE HIKES THAT A LOT OF THE PEOPLE STILL DON'T KNOW ABOUT IN CARLSBAD BECAUSE THE NOTICE REALLY WASN'T, NO ONE COULD UNDERSTAND IT, EVENTUALLY TOTALING 49%. OVER THREE YEARS. WAIT TILL NEXT JULY, NOT THIS ONE, THE FOLLOWING YEAR. IT'S GOING TO BE BAD. MR. BLACKBURN JUSTIFIED IT BY SAYING, QUOTE, I DON'T WANT TO BE ON THE NEWS ALL THE TIME LIKE THE CITY OF SAN DIEGO IS WITH BROKEN PIPES, FLOODED BUSINESSES, AND THINGS LIKE THAT. HE DIDN'T WANT TO LOOK BAD. WELL, YOU'RE ALL LOOKING BAD NOW BECAUSE WE'RE GOING TO BE WATER THROUGH THE NOSE HERE. YOUR DECISION HAS EXACERBATED AN ALREADY SEVERE ECONOMIC STRAIN ON MANY CARLSBAD FAMILIES, AND MORE RATE HIKES ARE COMING. AS CITY COUNCIL MEMBERS, YOU TOOK AN OATH TO WELL AND FAITHFULLY DISCHARGE YOUR DUTIES, INCLUDING THE PROTECTION OF PUBLIC HEALTH, SAFETY, AND GENERAL WELFARE. YOUR ALTER EGO ARRANGEMENT, ALTHOUGH LEGAL, VIOLATES THE SPIRIT OF THAT OATH. CALIFORNIA'S WATER POLICIES ARE INCREASINGLY CONTENTIOUS. IN THE PUBLIC INTEREST, YOU SHOULD VOLUNTARILY RESIGN THOSE ROLES AND ESTABLISH AN INDEPENDENT CMWD BOARD WITH REAL TECHNICAL EXPERTISE AND SEPARATE ACCOUNTABILITY. CARLSBAD DESERVES BETTER THAN RUBBER STAMP GOVERNANCE. THANK YOU. CLAIRE MENDOZA. GOOD EVENING CITY COUNCIL MEMBERS. MY NAME IS CLAIRE MENDOZA AND I'M AN EIGHTH GRADER AT CALAVERA HILLS MIDDLE SCHOOL AND I'M HERE TO TALK ABOUT HOW PHONE AND HYGIENE PRODUCTS SHOULD BE FREE IN PUBLIC BATHROOMS. TODAY MANY PEOPLE USE CREDIT [00:15:02] CARDS AND APPLE PAY RATHER THAN CASH OR COINS AND OFTEN PAD AND TAMPON MACHINES ONLY TAKE 25 CENTS WHICH MOST PEOPLE DON'T HAVE ON THEM REGULARLY. THIS MAKES IT DIFFICULT FOR PEOPLE WHO SUDDENLY NEED THESE PRODUCTS BUT LACK THE RIGHT PAYMENT. HYGIENE PRODUCTS ARE A NECESSITY, NOT A LUXURY. PEOPLE HAVE NO CONTROL WHEN THEY NEED THEM, YET ARE EXPECTED TO PAY OR GO WITHOUT. HYGIENE PRODUCTS SHOULD BE FREE FOR THE PUBLIC USE BECAUSE THEY ARE A BASIC HEALTH NECESSITY AND IT SHOULD BE A RESOURCE FOR EVERYONE, NOT JUST PEOPLE WHO HAPPEN TO CARRY AROUND COINS. AGAIN, I'M HERE TO SAY THAT HYGIENE PRODUCTS SHOULD BE FREE, LIKE PADS OR TAMPONS, AND THEY SHOULD BE PROVIDED AT NO COST TO THESE PUBLIC BATHROOMS. THANK YOU FOR LISTENING. PAIGE DECINO, MAYOR AND CITY COUNCIL MEMBERS, I'M PAIGE DECINO SPEAKING ON BEHALF OF PRESERVE CALAVERA TONIGHT. A FEW MONTHS AGO, THE CALIFORNIA COASTAL COMMISSION ORDERED JOHN LEVY TO OPEN THE GATES TO HIS PROPERTY NEXT TO BUENA VISTA LAGOON AS PART OF THE PUBLIC'S RIGHT TO ACCESS OUR BEACHES. THIS PARTICULAR HOMEOWNER HAS SPENT DECADES BLOCKING ACCESS AND IGNORING HIS RESPONSIBILITIES TO RESTORE NATIVE HABITAT. SINCE THEN, LEVY HAS OPENED THE GATE TO HELP MITIGATE THE SIGN PENALTY, AND THE CITY POSTED SIGNS FOR THE TRAIL, WHICH ALL IS VERY GOOD. THIS WOULD BE A GREAT TIME FOR THE CITY TO CREATE ADA ACCESS TO THAT SITE BECAUSE IT DOESN'T REQUIRE ANY STAIRS, AND AS YOU KNOW, THE STAIRS ARE A PROBLEM FOR A LOT OF PEOPLE. WHEELCHAIRS AND WHATNOT IN CARLSBAD. OKAY, SO LEVY HAS APPEALED ANOTHER PART OF THE DECISION REQUIRING HIM TO MAINTAIN AND RESTORE A SECOND TRAIL THAT GOES TO THE LAGOON, NOT THE BEACH. IT IS CURRENTLY SO OVERGROWN THAT ONE REALLY CAN'T ACCESS THE LAGOON. WHAT IS SURPRISING IS THAT THE CITY OF CARLSBAD HAS WRITTEN A LEGAL BRIEF SUPPORTING HIS APPEAL. WE HAVE NOT SEEN ANY FORMAL ACTION BY THE CITY COUNCIL APPROVING THIS POSITION AND HAVE NOT BEEN ABLE TO ACQUIRE ANY DOCUMENTATION THROUGH A PUBLIC RECORDS REQUEST EITHER. WHERE IS THE TRANSPARENCY? AND WHY WOULD THE CITY COUNCIL SUPPORT OVERTURNING THE COASTAL COMMISSION'S PERMIT? THE RESIDENTS OF CARLSBAD NEED ANSWERS. THE RESIDENTS HAVE BEEN HAPPY TO HAVE ACCESS TO THIS AVAILABLE SITE, BUT THE CITY, I DON'T THINK, HAS BEEN FORTHCOMING IN THEIR POSITION ON... PART OF IT, I.E. THE SECOND TRAIL, WHICH IS UNDERMINING PART OF OUR ACCESS TO AS A PUBLIC RIGHT. SO PLEASE BRING THIS ISSUE BEFORE COUNCIL AND CLARIFY STAFF'S ACTIONS. THANK YOU VERY MUCH. ALEXANDER WRIGHT. EVENING COUNCIL MEMBERS. WE ARE MEMBERS OF THE SAGE CREEK WATER POLO TEAM. THIS YEAR WE HAD OUR INAUGURAL SEASON WHICH WENT VERY WELL AS THIS IS A FIRST YEAR TEAM. OH BOY, I'M SORRY. SORRY, THIS IS OUR FIRST YEAR AS A TEAM AT SAGE CREEK. WE SPENT THE PAST TWO YEARS TRYING TO GET THIS TEAM ORGANIZED AND OFFICIALIZED AT SAGE CREEK. WE HAD A VERY BIG FIRST SEASON. ACTUALLY, WE SENT BOTH OF OUR TEAMS TO CIFS, WHICH IS WONDERFUL. BUT UNFORTUNATELY, WE HAD TO PRACTICE IN OCEANSIDE, AS WATER POLO IS A SPORT THAT REQUIRES A POOL. AND HERE IN CARLSBAD, ALGA NORTE WOULD NOT GIVE US POOL TIME, AND MONROE IS STILL CLOSED FOR CONSTRUCTION. SO WE HAD TO RESORT TO MARSHALL STREET AND BROOK STREET POOL IN OCEANSIDE. AND RECENTLY WE HAVE LEARNED THAT... THE OCEANSIDE AQUATICS DEPARTMENT NOW REQUIRES 50% OF RESIDENTS OF THAT SCHOOL OR ORGANIZATION TO LIVE IN OCEANSIDE, WHICH IS A STEP UP FROM THE 10% WHICH WE HAD. SO UNFORTUNATELY, WE WILL NOT HAVE POOL TIME IN THE OCEANSIDE, NOR CARLSBAD, AS RIGHT NOW. AND YEAH, WES. CURRENTLY, WE HAVE POOL TIME. IN AUGUST ONLY AT ALGONORTE, AND WE UNDERSTAND THAT THE SCHEDULES HAVE NOT BEEN SET YET. FOR POOL TIME AFTER THAT, BUT WE'RE LOOKING TO CONTINUE UP THE SUCCESS THAT OUR TEAMS HAD LAST SEASON INTO THIS COMING 2027 SCHOOL YEAR. [00:20:01] AND LIKE WE SAID, WE HAD TWO VERY SUCCESSFUL TEAMS. WE HAD ALL SORTS OF KIDS THAT JUST HAD AN INCREDIBLE TIME PLAYING WATER POLO AT SAGE CREEK, AND WE'RE JUST LOOKING TO GET SOME HELP FROM THE CITY COUNCIL WITH PARKS AND RECREATION TO GET OUR TEAM SOME POOL TIME THIS YEAR. I KNOW THAT THIS MIGHT SEEM LIKE A VERY LARGE MATTER, BUT AT SAGE CREEK WE'RE A FAMILY, RIGHT? WE HAVE 40 VERY DEDICATED INDIVIDUALS THAT ARE ALL UNIFIED BY THE SPORT OF WATER POLO, AND AT THE END OF THE DAY WE'RE JUST TRYING TO DO WHAT WE LOVE. IT'S A BLAST, REALLY. THE GOAL IS TO MAKE BETTER PEOPLE, AND I BELIEVE THAT WATER POLO MAKES BETTER PEOPLE BETTER FOR THE FUTURE. I'M SORRY. YEAH, THANK YOU GUYS FOR YOUR CONSIDERATION. I'M GOING TO ASK YOU TO TALK WITH KYLE LANCASTER. HE'S OUR PARKS DIRECTOR. HE'S RIGHT THERE. TALK WITH HIM. IF NOTHING ELSE, GET SOME UPDATES ON WHEN MONROE STREET POOL IS GOING TO BE FINISHED. UNFORTUNATELY, WHEN WE MAKE SOME BIG IMPROVEMENTS, IT'S GOING TO BENEFIT A LOT OF PEOPLE, BUT IN THE MEANTIME, IT'S A HUGE INCONVENIENCE, AND WE ACKNOWLEDGE THAT. SO PLEASE TALK WITH KYLE. THAT'S THE CONCLUSION OF THE PUBLIC COMMENT BEFORE THE MEETING. THE REST OF THE PUBLIC COMMENTS [CONSENT CALENDAR] WILL BE HEARD AT THE END OF THE AGENDA. NEXT IS CONSENT CALENDAR ITEMS NUMBER ONE THROUGH SEVEN, WITH THE EXCEPTION OF NUMBER SIX. ITEM SIX IS THE APPOINTMENT OF THE SAN DIEGO COUNTY WATER AUTHORITY BOARD OF DIRECTORS. IT'S BEING PULLED AT THE REQUEST OF THE CITY MANAGER. AND WILL BE BROUGHT BACK FOR CONSIDERATION ON JUNE 9TH. ON ITEM NUMBER THREE ON THE CONSENT CALENDAR IS TO APPROVE THE AMENDMENTS TO THE UNREPRESENTED COMPENSATION AND BENEFITS PLAN AND FOR THE UNREPRESENTED SALARY SCHEDULE. IF THE AMENDMENTS ARE APPROVED BY THE CITY COUNCIL, THE ANNUAL BASE SALARY FOR OUR FIRE CHIEF WILL INCREASE TO $293,299. THE ANNUAL BASE SALARY FOR THE DIRECTOR OF CONSTITUENT AND CLERK SERVICES WILL INCREASE TO $188,273, AND THE ANNUAL BASE SALARY FOR THE ECONOMIC DEVELOPMENT DIRECTOR WILL BE $229,724. IN ADDITION, THE FIRE CHIEF AND ASSISTANT FIRE CHIEF WILL BE ELIGIBLE FOR LONGEVITY PAY EQUAL TO 3% OF THE BATTALION CHIEF'S MAXIMUM BASE SALARY. OR $223.17 BIWEEKLY AFTER 20 YEARS OF FULL SERVICE WITH THE CITY, AND EQUAL TO 5% OF THE BATTALION'S CHIEF MAXIMUM BASE SALARY, OR $371.96 BIWEEKLY AFTER 25 YEARS OF FULL-TIME CITY SERVICE. SO ANY SPEAKERS ON THE CONSENT CALENDAR? YES. ITEM NUMBER ONE, GLENN BERNARD. FOR THOSE WHO DON'T KNOW, ITEM NUMBER ONE DEALS WITH INVESTMENTS, MIGHT MEAN INCOME COMING INTO THE CITY FROM VARIOUS SOURCES, A TERRIFIC SOURCE OF REVENUE, SOURCES, SALES TAX, PROPERTY TAX, A COUPLE MORE. SO YOU'VE HIRED DIRECTOR OF ECONOMIC... DEVELOPMENT AND I BELIEVE THE COMPLETE TITLE IT'S LIKE WHEN YOU INTERVIEW FOR THAT IT'S LIKE YOU SAY WELL I KNOW I HAVE MORE MORE KNOWLEDGE AND MORE POWER OVER THE LAW OF SUPPLY AND DEMAND PUT ME IN CHARGE OF ECONOMIC DEVELOPMENT BUT I THINK ACTUALLY THE PURPOSE OF THE POSITION IS THE ECONOMIC DEVELOPMENT OF THE STRAWBERRY FIELDS WHAT'S TIME THERE'S A CYCLE YOUNG LADY BEFORE MENTIONED THE CYCLE THIS IS A 10-YEAR CYCLE AND I HAVE BEEN WONDERING WHO ARE THE PEOPLE WHO ARE BOTHERED BY THE DIRT THERE THAT RUNS UP AGAINST THE FREEWAY. THE OWNERSHIP IS A VERY WONDERFUL FAMILY. THEY DO GREAT THINGS WITH THEIR PROPERTY. BUT IN 2005, THERE WERE SECRET MEETINGS CONDUCTED BETWEEN CITY PERSONNEL AND THE LENAR CORP. AND LENAR ACCEPTED AN INVITATION TO COME OVER HERE TO CITY OFFICES AND HAVE MEETINGS. WITH CITY PERSONNEL TO DISCUSS PUTTING CONDOS THERE. AND ULTIMATELY, THE SAN DIEGO UNION TRIBUNE HAD THE MOST SCATHING THING ABOUT IT WHEN THEY WROTE, [00:25:01] CARLSBAD CITY HALL GOT CAUGHT WITH THEIR HANDS IN THE COOKIE JAR. BUT IT LED TO A COUPLE OF BALLOT PROPOSITIONS, E AND E WAS WRITTEN BY SOME PEOPLE. F WAS WRITTEN BY CITY HALL. IT WAS NOT PLEASANT. CITY HALL PAID FOR ADVERTISING, MAKING IT CLEAR THAT THEIR BALLOT PROP WAS BETTER THAN THEN, 10 YEARS LATER, I BELIEVE THE CYCLE IS A 10-YEAR CYCLE. 10 YEARS LATER, THE CITY LEGITIMATELY REACHED OUT TO A DEVELOPED, SOMEBODY WHO, WE WANT YOU TO BUILD A MALL HERE, PLEASE. AND MR. CARUSO SAID, OKAY, WELL, WHAT DO I HAVE TO DO? AND PEOPLE INSIDE THE CITY SAID, WE KNOW HOW SLICK ADVERTISING, SLICK MAILERS WILL GET OUR VOTERS TO CHANGE THE ZONING SO THAT YOU COULD BUILD A MALL. AND HE SPENT MILLIONS, AND HE WAS HAD. SO, AGAIN, IF EITHER ONE OF THESE HAD OCCURRED, THERE WOULD BE MORE REVENUE COMING INTO THE CITY BECAUSE OF SALES TAX FROM THE STORES OR PROPERTY TAXES FROM THE CONDOS. TEN-YEAR INCREMENTS, WHERE DO? I AM PREDICTING. THAT VERY SOON THERE'S GOING TO BE A MOVEMENT TO DEVELOP THE STRAWBERRY FIELDS BECAUSE IT'S DUE, UNFORTUNATELY. ON ITEM NUMBER TWO, CHRISTIAN PEACOCKS. GOOD EVENING, MAYOR AND COUNCIL MEMBERS. I'M CHRISTIAN PEACOCKS, CARLSBAD CITY TREASURER. I WANTED TO HIGHLIGHT BRIEFLY THE INVESTMENT POLICY UPDATE ON TONIGHT'S CONSENT CALENDAR. THIS POLICY WAS FORMALLY REVIEWED AND CERTIFIED LAST YEAR BY THE CALIFORNIA MUNICIPAL TREASURERS ASSOCIATION, AND THIS UPDATE BUILDS ON THAT FOUNDATION WHILE INCORPORATING FEEDBACK FROM THE REVIEW PROCESS. THIS UPDATE DOESN'T CHANGE OUR INVESTMENT PHILOSOPHY. RATHER, IT REFINES HOW WE IMPLEMENT IT TO BETTER ALIGN WITH CALIFORNIA GOVERNMENT CODE, THE PRUDENT INVESTOR STANDARD, AND THE CITY'S ACTUAL CASH FLOW NEEDS. NOW, AS A REMINDER, OUR PRIORITIES OF SAFETY, LIQUIDITY, AND YIELD REMAIN UNCHANGED IN THAT ORDER. THERE'S THREE PRIMARY UPDATES I'D LIKE TO HIGHLIGHT TONIGHT, AND THE FIRST IS THE POLICY MODERNIZES HOW WE MANAGE LIQUIDITY BY TYING IT DIRECTLY TO PROJECTED CASH FLOW NEEDS RATHER THAN A FIXED PERCENTAGE OF THE BUDGET, ENSURING WE MAINTAIN SUFFICIENT LIQUIDITY TO MEET THE CITY'S OBLIGATIONS UNDER REAL-WORLD CIRCUMSTANCES. NOW, SECOND, THE POLICY ALIGNS CERTAIN CREDIT STANDARDS WITH STATE LAW, MAINTAINING INVESTMENT-GRADE QUALITY WHILE ALLOWING APPROPRIATE FLEXIBILITY TO DIVERSIFY AND BETTER MATCH INVESTMENTS TO OUR CITY'S NEEDS. AND THIRD, THE POLICY REMOVES A FIXED MODIFIED DURATION CAP. NOW, DURATION WILL CONTINUE TO BE MONITORED AND REPORTED, BUT THIS ALLOWS THE PORTFOLIO TO ADJUST WITHIN EXISTING MATURITY LIMITS BASED ON LIQUIDITY NEEDS AND MARKET CONDITIONS RATHER THAN A STATIC THRESHOLD. AND LAST, THE POLICY ALSO ADDS CERTAIN ALLOWABLE INVESTMENT TYPES, LIKE MUTUAL FUNDS, TO ALIGN WITH STATE CODE. AND THIS. DOES NOT INDICATE A CURRENT INTENT TO INVEST IN THOSE INSTRUMENTS. IT JUST SIMPLY ENSURES THE POLICY REFLECTS ALL INVESTMENTS PERMITTED UNDER STATE LAW. NOW, AS OUR INVESTMENT PORTFOLIO APPROACHES THE $1 BILLION MARK, THE STEWARDSHIP OF THESE FUNDS BECOMES INCREASINGLY IMPORTANT. AT CURRENT YIELDS, OUR PORTFOLIO GENERATES TENS OF MILLIONS OF DOLLARS ANNUALLY, AND THAT GOES TO SUPPORT ESSENTIAL SERVICES LIKE PUBLIC SAFETY, PARKS, AND OTHER COMMUNITY PROGRAMS. AND I ALWAYS LIKE TO POINT OUT THAT EVERY DOLLAR WE EARN ON THE PORTFOLIO IS A DOLLAR WE DON'T HAVE TO TAX RESIDENTS. SHAMELESS PLUG HERE. IF ANYONE WOULD LIKE TO LEARN MORE ABOUT HOW WE MANAGE THE CITY'S INVESTMENTS, I ENCOURAGE YOU TO ATTEND ONE OF OUR INVESTMENT REVIEW BOARD MEETINGS. AND OUR NEXT MEETING IS GOING TO BE HELD HERE, MAY 28TH, THURSDAY AT 2 O'CLOCK. SO HOPE TO SEE YOU THERE AND THANK YOU FOR YOUR TIME. ITEM NUMBER THREE, CHRIS WRIGHT. I THINK SHE WANTED TO SPEAK ON ITEM NINE. IS THAT CORRECT? ANY OTHER SPEAKERS [00:30:01] FOR ITEM NUMBER FIVE, GLENN BERNARD? THANK YOU. COST OVERRUNS. ITEM NUMBER FIVE DEALS WITH COST OVERRUNS AT THE UNNECESSARY REHABILITATION OF THE SWIMMING POOL UP ON MONROE. EVERY BIT AS UNNECESSARY AS A NEW CITY HALL BUILDING. FOR WHICH YOU'RE ADVERTISING $50 MILLION, BUT BY THE TIME ALL IS SAID AND DONE, IF IT GOES THE WAY THE GOLF COURSE DID, IT'LL COST $150 MILLION, AND THE CITY WILL STOP REPORTING THE EXPENSES. LIKE THEY DID THE GOLF COURSE. THEY STOPPED REPORTING THE EXPENSES AT $70 MILLION, AND IT WENT TO $100. $150 MILLION FOR THE NEW CITY HALL, YOU'LL PROBABLY STOP REPORTING. PORTING THE EXPENSES WHEN YOU HIT A HUNDRED AND AFTER THAT YOU'LL KEEP IT A SECRET HERE APPROVED CHANGE ORDERS. THAT'S A CUTE WAY OF SAYING COST OVERRUNS SO THE QUESTION BECOMES WHO IS THE CITY HALL NITWIT THAT SIGNED THIS CONTRACT? WITH A CONSTRUCTION COMPANY TO DO THE UNNECESSARY REHAB OF THAT SWIMMING POOL DIDN'T COULD COULDN'T HE THINK OF EVERYTHING? DID THE CONSTRUCTION COMPANY, DID YOU CHECK THEIR REFERENCES? HOW IS IT THAT A PROFESSIONAL SWIMMING POOL CONSTRUCTION COMPANY IS COMING UP WITH ODD THINGS THAT WAS UNFORESEEN? SO MY REQUEST, BASED ON THIS, IS FIRE THE GUY WHO'S EMPLOYED BY THE CITY WHO'S SIGNED THE CONTRACT, FIRE THIS CONTRACTOR, AND GET SOMEBODY WHO WILL COME IN, SIGN ONE CONTRACT, AND STICK TO IT. I KNOW MY MARINE IS SHOWING WHERE YOUR WORD IS YOUR WORD AND YOU STICK TO IT THROUGH THE BITTER END. BUT, SO I'VE BEEN WONDERING, THE OPERATIVE PHRASE WHEN THE GOLF COURSE WAS BEING BUILT, WHEN COST OVERRUNS CAME IN FROM THE CONTRACTOR, HOW DID CITY COUNCIL DECIDE TO APPROVE IT OR NOT? THE CRITERION WAS, WELL IS THERE GOING TO BE A $35,000 BRONZE PLAQUE ON THIS PROJECT WHEN IT'S OVER? WITH MY NAME ON IT SO I CAN BRING MY GRANDKIDS HERE BUT HERE THIS IS CLEVER FOR THE COST OVERRUNS AT THE POOL AND UNDOUBTEDLY FOR THE CITY HALL COMING UP THE NEW CITY HALL THIS MAKES IT CLEAR THAT THE CITY MANAGER ALONE IS GONNA MAKE THOSE DECISIONS WHICH MIGHT BE A GOOD IDEA I MEAN CAN YOU CAN YOU PROMISE US NOW SIR THAT YOUR NAME WON'T GO UP ON THE THIRTY FIVE THOUSAND DOLLAR BRONZE PLAQUE WHEN THESE PROJECTS ARE DONE. BUT AT LEAST FOR YOU NICE PEOPLE ON THE CITY COUNCIL, YOU'RE NOT GOING TO HAVE TO MAKE THE DECISION THAT COUNCIL MEMBER NOREEN SIGAFOOSE HAD TO MAKE WHEN THE COST OVERRUNS WERE WEIGHING ON HER AND SHE COULD, TO USE HER WORD, SHE COULDN'T STAND THE CORRUPTION. THERE ARE NO ADDITIONAL SPEAKERS. THANK YOU. ANY COMMENTS FROM COUNCIL ON ANY OF THE CONSENT CALENDAR ITEMS? MOTION FOR 1 THROUGH 7 WITH THE EXCEPTION OF NUMBER 6. SO MOVED. SECOND. PLEASE VOTE. PASSES UNANIMOUSLY. [8. ADOPTION OF ORDINANCE NO. CS-514 – CLARIFYING THE REGULATION OF THE TEMPORARY STORAGE AND STAGING OF CONSTRUCTION EQUIPMENT AND MATERIALS WITHIN THE CITY’S PUBLIC RIGHT-OF-WAY AND PUBLIC PROPERTY] ITEM NUMBER 8 IS AN ADOPTION OF AN ORDINANCE. THIS IS THE ORDINANCE CLARIFYING THE REGULATION OF THE TEMPORARY STORAGE. AND STAGING OF CONSTRUCTION EQUIPMENT AND MATERIALS WITHIN THE CITY'S PUBLIC RIGHT-OF-WAY AND PUBLIC PROPERTY. DO WE HAVE ANY SPEAKERS? THERE ARE NO SPEAKERS. ANY COMMENTS FROM COUNCIL? PLEASE VOTE. MOVE ADOPTION OF THE ORDINANCE. SECOND. PASSES UNANIMOUSLY. ITEM NUMBER NINE, [9. TOLL BROTHERS REQUEST FOR GENERAL PLAN AMENDMENT – DECISION ON WHETHER OR NOT TO ALLOW FURTHER PROCESSING OF THE REQUEST] CITY MANAGER. ITEM NUMBER NINE IS A REQUEST FOR A GENERAL PLAN AMENDMENT DECISION ON WHETHER OR NOT TO ALLOW FURTHER PROCESSING OF THIS REQUEST. AND FOR THE PRESENTATION, WE HAVE ASSISTANT DIRECTOR OF COMMUNITY DEVELOPMENT, ERIC LARDY. GOOD EVENING, CITY COUNCIL. MY NAME IS ERIC LARDY, ASSISTANT DIRECTOR OF COMMUNITY DEVELOPMENT. AS A PUBLIC HEARING, THERE ARE PROCEDURES ESTABLISHED TO ALLOW ALL PARTIES THE OPPORTUNITY FOR DUE PROCESS. THESE ARE THOSE PROCEDURES. BEFORE WE GET INTO THE SPECIFIC REQUEST, I'M GOING TO PROVIDE ADDITIONAL CONTEXT ON THE PROPOSED PROJECT AND WHAT IS BEING REQUESTED TODAY. FOR BACKGROUND, IN 2021, THE CITY COUNCIL APPROVED THE CITY'S HOUSING ELEMENT, WHICH WAS CERTIFIED LATER THAT YEAR BY THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT AS MEETING ALL THE REQUIRED STATE LAWS. ONE OF THE PROGRAMS INCLUDED IN [00:35:01] THE HOUSING ELEMENT WAS THE REQUIREMENT TO REZONE ENOUGH PROPERTIES THROUGHOUT THE CITY TO ACCOMMODATE THE REGIONAL HOUSING NEEDS ALLOCATION. AFTER EXTENSIVE PUBLIC ENGAGEMENT AND PUBLIC MEETINGS, THE CITY COUNCIL ON JANUARY 30, 2024, APPROVED THE REZONING OF 18 PUBLIC AND PRIVATE PROPERTIES TO ACCOMMODATE OVER 2,300 NEW HOUSING UNITS TO ENSURE THE ABILITY TO MEET THOSE GOALS. FOLLOWING THE CITY COUNCIL ACTION, STAFF STARTED RECEIVING INQUIRIES FROM PRIVATE OWNERS AND DEVELOPERS INTERESTED IN REZONING OR UPZONING THEIR PROPERTY TO ACCOMMODATE THE NEW AND ADDITIONAL HOUSING UNITS. BECAUSE OF THE CITY COUNCIL ACTION, IT WAS DEPARTMENT POLICY TO DENY SUCH REQUESTS AND IF AN APPLICATION WAS SUBMITTED, STAFF WOULD BRING IT FORWARD WITH A RECOMMENDATION OF DENIAL. GIVEN THE INCREASING NUMBER OF HOUSING REZONES ON JULY 15, 2025, STAFF SOUGHT CITY COUNCIL DIRECTION ON HOW TO PROCESS THESE PRIVATELY INITIATED REZONE REQUESTS. IN RESPONSE, CITY COUNCIL DIRECTED STAFF TO BRING FORWARD APPLICATIONS TO FIRST OBTAIN AUTHORIZATION FOR CONTINUED PROCESSING. IN OTHER WORDS, BEFORE CONDUCTING ANY ANALYSIS OR COMMUNITY ENGAGEMENT, WAS THEIR INITIAL SUPPORT TO ALLOW THE APPLICATION TO CONTINUE IN THE PROCESS. STAFF WERE DIRECTED NOT TO MAKE ANY RECOMMENDATION ON THE AUTHORIZATION BUT TO SEEK PLANNING COMMISSION INPUT. THIS IS THE FIRST OF THOSE REQUESTS. WHAT WE STARTED WITH, SO THIS WILL BE A FLOW CHART TO WALK US THROUGH THE PROCESS AND THE POTENTIAL OPTIONS. WE STARTED WITH A 30-DAY COMPLETENESS REVIEW THAT OUTLINED A HIGH LEVEL POLICY ISSUES AND WHAT WE WOULD NEED TO GET A COMPLETE APPLICATION SHOULD IT MOVE FORWARD. WE THEN IMMEDIATELY BEGAN WORKING WITH THE APPLICANT TO SCHEDULE REVIEW HEARINGS AT THE PLANNING COMMISSION AND CITY COUNCIL. THE FIRST OPTION IN FRONT OF THE CITY COUNCIL WOULD BE TO REMAND THE PROJECT BACK TO STAFF. THAT IS THE OPTION THAT'S INCLUDED IN EXHIBIT 1. IF ADOPTED, THIS IS WHEN THE DETAILS AND SPECIFIC PROJECT MERITS WOULD LOOK AT FOR PROCESSING, WHICH WOULD INCLUDE 12 TO 24 MONTHS OF FULL APPLICATION MATERIAL DEVELOPMENT, AN EVALUATION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, SPECIFIC PROJECT DESIGN REFINEMENT, AND THE APPLICANT WOULD BE REQUIRED TO COMPLETE ENHANCED STAKEHOLDER OUTREACH AS REQUIRED BY CITY COUNCIL POLICY 84. FOLLOWING ALL OF THAT, THE PROJECT WOULD BE PRESENTED TO PLANNING COMMISSION AND CITY COUNCIL. MOVING FORWARD WITH THIS OPTION IS NOT A GUARANTEE OF PROJECT APPROVAL. ULTIMATE PROJECT APPROVAL RESTS WITH THE CITY COUNCIL. THE SECOND OPTION, WHICH WOULD BE ADOPTED BY ADOPTING EXHIBIT 2, THE RESOLUTION CONTAINED THEREIN, WOULD BE TO DENY THE PROJECT AND THE PROJECT WOULD NOT MOVE FORWARD. THE PROJECT IS LOCATED ON A SEVEN ACRE SITE SURROUNDED BY GATEWAY, ALICANTE, AND TOWN GARDEN ROADS. THEY'RE PROPOSING APPROXIMATELY 111 TOWNHOME FOR SALE UNITS ON THIS SITE. THIS SLIDE SHOWS THE CITY'S GENERAL PLAN ON THE LEFT. CONTAINED WITHIN IT IS INDUSTRIAL DESIGNATIONS IN THE LIGHT BLUE COLOR, DIFFERENT RESIDENTIAL DESIGNATIONS IN THE ORANGE, YELLOW, AND BROWN COLORS, AND OPEN SPACE IN GREEN. ON THE RIGHT SHOWS THE PROPOSED REQUESTED DESIGNATION CHANGE, CHANGING TO A DESIGNATION OF RESIDENTIAL 23, WHICH ALLOWS FOR PROJECTS FROM 19 TO 23 UNITS PER ACRE. OVERALL, WITH HOUSING PROJECTS, LOCAL CONTROL IS IMPACTED BY MANY LAWS THAT CHANGE ANNUALLY. MANY PROJECTS HAVE BEEN PRESENTED, AND WE TELL YOU ABOUT THE VERY HIGH BAR THAT REQUIRES SPECIFIC AND OBJECTIVE PUBLIC HEALTH OR SAFETY FINDINGS. TO EITHER MODIFY OR DENY THOSE PROJECTS. THOSE PROJECTS ARE CONSISTENT WITH THE LAND USE DENSITIES OF EITHER THE GENERAL PLAN OR ZONING ORDINANCE AS MODIFIED BY THOSE STATE LAWS. IN THIS CASE, THIS IS A LEGISLATIVE ACTION. A GENERAL PLAN IS MEANT TO CHANGE THE GENERAL PLAN TO ALLOW THE OTHER PERMIT IN IMPLEMENTING PROJECTS. AS LONG AS A CITY HAS A HOUSING ELEMENT THAT IS IN GOOD STANDING WITH THE STATE, LOCAL CONTROL REMAINS OVER THE GENERAL PLAN. THEREFORE, WHAT WE'RE ASKING AS PART OF THE SCREENING PROCESS IS FOR POLICY DIRECTION ON WHAT THE GENERAL PLAN SHOULD CONSIDER FOR THE SITE. IF THE PROJECT CONTINUES, THE INTENT IS TO LEAVE DETAILS TO A COMPLETE PROJECT EVALUATION SO THAT THEY CAN STILL BE REVIEWED AND DECIDED ON THE MERITS AT THAT SECOND SET OF HEARINGS. THERE WERE 17 COMMENTS RECEIVED AND ATTACHED AS PART OF EXHIBIT 7, 12 OPPOSED AND 5 IN SUPPORT OF THE PROJECT. THERE WERE NUMEROUS COMMENTS RECEIVED OVER THE LAST WEEK, AND THEY'VE BEEN INCLUDED AND POSTED ONLINE IN A SET OF FOUR DIFFERENT BATCHES. ALL PROPERTY OWNERS AND OCCUPANTS WERE MAILED NOTICES WITHIN 600 FEET OF THE PROJECT, AND ANY CONTACTS THAT EMAILED IN SINCE THE PROJECT WAS RECEIVED WERE UPDATED [00:40:01] WITH THE STATUS. ON FEBRUARY 18TH, THE PLANNING COMMISSION HELD A PUBLIC HEARING AND RECOMMENDED REMANDING THE PROJECT BACK TO STAFF FOR PROCESSING. IF THE CITY COUNCIL APPROVES THE FIRST RESOLUTION REMANDING THE PROJECT BACK, THAT IS NOT A PROJECT UNDER CEQA AND NO FINDING IS REQUIRED. IT DOES NOT HAVE A LEGALLY BINDING EFFECT ON THE FUTURE DISCRETIONARY ACTIONS TO APPROVE THE PROJECT AND SUBSEQUENT CEQA WOULD BE REQUIRED. RECOMMENDING DENIAL OF AN APPLICATION IS STATUTORILY EXEMPT UNDER CEQA. BECAUSE THE GUIDELINES STATE THAT THE EXEMPTION CAN ALLOW FOR INITIAL SCREENING OF PROJECTS ON THE MERITS FOR QUICK DISAPPROVAL PRIOR TO INITIATION OF THE CEQA PROCESS WHERE THE AGENCY CAN DETERMINE THE PROJECT CANNOT BE APPROVED. THROUGH THE ACTIONS CONTAINED IN THE STAFF REPORT, WE ARE HAVING THREE OPTIONS AND ACTIONS. FIRST IS TO HOLD A PUBLIC HEARING. THE SECOND, WHICH WE REFER TO AS OPTION ONE, IS TO ADOPT A RESOLUTION REMANDING THE PROJECT BACK. THAT WOULD BE THROUGH ADOPTING EXHIBIT ONE. AND THEN THE THIRD OPTION WOULD BE ADOPTING EXHIBIT TWO, ADOPT A RESOLUTION DENYING THE APPLICATION. THAT CONCLUDES OUR PRESENTATION, AND WE'RE AVAILABLE FOR QUESTIONS. ANY QUESTIONS FROM COUNSEL? MR. SHIN. IS IT PUBLIC FIRST? IT'S US? NO, THIS IS A PUBLIC HEARING. IT'S A DIFFERENT ORDER. GOTCHA. OKAY. THANKS FOR THE PRESENTATION. I JUST SO THIS IS MORE ABOUT THE PROCESS OF WHAT WE APPROVED IN JULY. SO PRIOR TO THAT, WE WOULD JUST AUTOMATICALLY IF IT WASN'T PART OF THE HOUSING, THE HOUSING PLAN, WE WOULD STAMP A DENIAL, WHICH KIND OF AND THE REASON WHY WE FLIPPED IT TO HAVING THIS OPTION THAT WE SEE TODAY IS BECAUSE THERE WAS KIND OF A BIAS AUTOMATICALLY KIND OF SHOWN TO THE PROPERTY OWNER. THAT THE PROJECT WOULDN'T BE GOOD. IS THAT KIND OF WHERE WE CAME FROM, THE CONCLUSION OF THAT VOTE? THAT WAS PART OF THE DISCUSSION THAT WAS HELD IN JULY. SO IT WAS AN AUTOMATIC STAFF RECOMMENDATION OF DENIAL. THERE WAS A DISCUSSION AT THE HEARING, AND ULTIMATELY CITY COUNCIL RECOMMENDED NO RECOMMENDATION OF DENIAL BUT BRING IT FORWARD FOR A CONSIDERATION PROCESS. AND FOR FULL CLARITY, WE'RE NOT HERE TO APPROVE ANYTHING OTHER THAN THE ALLOWANCE OF THEM TO SUBMIT THE APPLICATION AND ALLOW IT TO GO THROUGH ITS PROCESS LIKE HOW MOST... APPLICATIONS ARE WITH WITH THE EXCEPTION THE FACT THAT THIS WOULD BE A ZONE CHANGE CORRECT IF THE PROJECT IS REMANDED BACK TO STAFF THE APPLICATION WOULD BE ALLOWED TO CONTINUE THROUGH THE REST OF THE PROCESS GOTCHA OKAY THAT'S ALL ANY OTHER QUESTIONS. THANK YOU ALONG THE LINES OF THE QUESTION THAT YOU WERE JUST ASKED SELECTING THE OPTION OF ALLOWING THE PROJECT TO. GO THROUGH THE PROCESS WOULD NOT OBLIGATE THE CITY COUNCIL TO APPROVE THE APPLICATION IN THE FUTURE. IS THAT RIGHT? THAT IS CORRECT. OKAY. I KNOW IT SAYS THAT, BUT I JUST WANT TO BE VERY CLEAR THAT WE ARE NOT OBLIGATED TO APPROVE THE PROJECT IF IT GOES THROUGH THE PROCESS. OKAY. GREAT. THANKS. ANY OTHER QUESTIONS? OKAY. NEXT IS PUBLIC TESTIMONY. SO I'M OPENING THE PUBLIC TESTIMONY. DO WE HAVE ANY SPEAKERS? SUSAN FERGUSON. I APOLOGIZE, MR. MAYOR, BUT THE NEXT ON OUR PROCEDURES WOULD BE THE APPLICANT PRESENTATION. IF THE CLERK COULD PUT THE SLIDE BACK UP. THANK YOU. MY CHEAT SHEET IS MISSING THAT. THANK YOU VERY MUCH FOR HELPING. APPLICANT. MORE ABOUT FORM OVER SUBSTANCE. AND WE'RE REALLY TALKING ABOUT FORM. WE UNDERSTAND. CAN YOU HEAR ME? OKAY, THANK YOU. I'M NEVER ACCUSED OF MY VOICE NOT CARING. SO WE APPRECIATE THE PROCESS THAT WE'VE BEEN THROUGH SO FAR. AT OUR MULTIPLE MEETINGS THAT WE'VE HAD, IT'S BEEN ABUNDANTLY CLEAR, AND WE CERTAINLY UNDERSTAND WE ARE FULLY AT RISK AT THIS JUNCTURE. A YES TONIGHT TO MOVE FORWARD, WE CERTAINLY KNOW IS NOT AN ENDORSEMENT OF THE PROJECT. WE HAVEN'T EVEN HAD AN OPPORTUNITY TO DO OUTREACH. WE'VE HAD NO OPPORTUNITY TO MEET WITH FIRE, STREETS. THERE'S SO MANY OTHER THINGS THAT WE NEED TO DO. WE JUST WANT A LEVEL OF FAIRNESS TO BE ABLE TO PROCESS THIS APPROPRIATELY. IT'S REALLY IMPORTANT FOR US TO BE HEARD AND HAVE THESE THINGS CONSIDERED. AND THEN WE CAN HAVE ALL THE OUTREACH, EVEN YOUR COMMENTS AS IT RELATES TO THE POSITIVE COMMENTS AND NEGATIVE COMMENTS FROM THE PUBLIC. ALSO DEMONSTRATE THE ABILITY THAT WE SHOULD BE ABLE TO MEET WITH THESE FOLKS AND HAVE A FULL INTERACTION WITH THEM TO EXPLAIN WHAT WE'RE TRYING TO ACCOMPLISH. I'D LIKE TO SPEND ONE MINUTE, IF I COULD, JUST KIND OF GOING THROUGH. THE PROPERTY ITSELF AND WHERE IT SITS, LEVINE INVESTMENTS, WHO I'M A PARTICIPANT OF AND A PARTNER OF, [00:45:01] OWN THIS PROPERTY. WE'VE OWNED IT IN EXCESS OF 28 YEARS. WE OWN THE VIASAT CAMPUS AT ALL OF THE INTERSECTIONS. TO GIVE YOU A SENSE, PHASE ONE WAS THE FIRST PIECE WE DID. PHASE TWO WAS THE SECOND, WHICH IS ON THE NORTH SIDE, WHICH HAPPENS TO BE VACANT BECAUSE VIASAT CONTRACTED AFTER COVID. PHASE THREE IS WHERE THEIR C-SUITE IS, AND PHASE FOUR IS FURTHER OCCUPIED FROM THEM. THE SUBJECT SITE ITSELF, IF I COULD, IS A SEVEN-ACRE PARCEL OF A VIAS THAT WAS SUPPOSED TO ALSO EXPAND INTO, BUT WITH CURRENT CONDITIONS, THEY DON'T HAVE A NEED FOR THAT PROPERTY, ESPECIALLY SINCE PHASE TWO IS VACANT. I WILL ALSO TELL YOU IT'S REALLY IMPORTANT THAT THIS PROPERTY BE USED IN AN EFFECTIVE, EFFICIENT FASHION, THAT IT IS ACCRETIVE NOT ONLY TO THE NEIGHBORHOOD AND THE WALKABILITY OF THAT AREA, BUT ALSO TO NOT DENIGRATE THE RESIDENTIAL VALUES TO THESE AND WHAT WE CONTINUE TO OWN TO THE WEST. WE ARE NOT LEAVING THIS AREA. WE HAVE OWNED THIS PROPERTY FOR A LONG TIME. WE'VE BEEN A MEMBER OF THIS COMMUNITY. SO WE LOOK AT THIS AS A TRANSITIONING USE. AND IT'S REALLY IMPORTANT THAT WHATEVER WE DO THERE SUPPORTS THE VALUES OF BRESSEY RANCH, NOT ONLY IN QUALITY, BUT IN PRICES PER FOOT, ALSO ADDRESSES AFFORDABILITY ISSUES, WHICH WE KNOW IS A BIG ISSUE WITHIN THE CITY. SO AGAIN... WE ARE TAKING THIS APPROACH VERY SERIOUSLY. STAFF HAS BEEN TERRIFIC TO WORK WITH. WE'RE ANXIOUS TO BE ABLE TO PROCESS THIS. WE WOULD ASK YOU TO PLEASE ALLOW US TO DO SO. LET US FIELD ALL OF THE QUESTIONS. LET US WORK WITH THE NEIGHBORHOOD. LET US WORK WITH STAFF. LET US WORK WITH ANYBODY THAT HAS ANY COMMENTS. AND THEN BRING IT BACK TO YOU ONCE IT'S BEEN FULLY VETTED. WE'VE INDUCED TOLL BROTHERS, WHICH WE BELIEVE TO BE A VERY SUCCESSFUL HIGH-END HOME BUILDER, TO WORK WITH US ON THIS. AND JUST TO GIVE YOU AN OVERVIEW AND A GREAT SENSE OF WHAT IT IS THEY'RE GOING TO TRY TO DO THERE THROUGH THIS PROCESS, I'M GOING TO ASK A TOLL BROTHERS REPRESENTATIVE JUST TO GIVE YOU A SENSE FOR TWO MINUTES OF THE PRODUCT THAT WE'RE CONTEMPLATING DOING. WE JUST WANT THIS CHANCE TO BE HEARD. WE WANT AN OPPORTUNITY TO MAKE OUR CASE. WIN OR LOSE, WE'RE OKAY WITH THAT. WE UNDERSTAND THE WAY THIS PROCESS WORKS. WE'VE BEEN DOING IT IN YOUR COMMUNITY FOR A LONG TIME. AND I HAVE TO TELL YOU, SITTING IN TONIGHT'S MEETING, WE HEARD A MULTITUDE OF DIFFERENT DISCUSSIONS, BUT I WILL TELL YOU, YOU SHOULD BE VERY PROUD OF THE FACT THAT YOU HAD YOUTH STANDING UP HERE, COMFORTABLE ENOUGH TO COME VISIT WITH YOU. AND IF THEY HAD THE ABILITY TO DO THAT, WE WILL HAVE THE ABILITY TO DO THAT. WE WILL BE ABLE TO WORK WITH ANYBODY. SO I'M GOING TO ASK ERIC EVERHART FOR THREE MINUTES, JUST TO GIVE YOU A SENSE OF WHAT THAT IS, AND THEN HAPPY TO ADDRESS ANY OF THE ISSUES THAT YOU THINK EXIST. BUT ALL OF THE QUESTIONS THAT ARE IN YOUR HEAD, ALL OF THE QUESTIONS IN THE LETTERS OF OPPOSITION, EVEN THOSE QUESTIONS THAT WILL EXIST IN PEOPLE THAT ARE SUPPORTIVE, NEED TO BE ADDRESSED, AND WE NEED THAT OPPORTUNITY TO DO THAT. WE WOULD ASK FOR THAT FAIRNESS THIS EVENING. SO THANK YOU VERY MUCH. I APPRECIATE IT. AND WHICH IS TO GO FOR THE GREEN BUTTON? OKAY. GOOD EVENING, MAYOR. BLACKBURN, DISTINGUISHED MEMBERS OF THE CARLSBAD CITY COUNCIL AND RESIDENTS OF CARLSBAD. MY NAME IS ERIC HELVEHART AND I AM PROUD TO REPRESENT TOLL BROTHERS, ONE OF THE NATION'S MOST RECOGNIZED NAMES IN LUXURY HOME BUILDING. WE COME BEFORE YOU TONIGHT, THIS EVENING, WITH GREAT ENTHUSIASM AND DEEP RESPECT FOR THE PROCESS. OUR GOAL IS STRAIGHTFORWARD, TO EARN YOUR CONFIDENCE AND THE OPPORTUNITY TO FORMALLY ADVANCE OUR APPLICATION FOR LAND USE ENTITLEMENT OF THIS SITE. SINCE 1967, TOLL BROTHERS HAS GROWN FROM A REGIONAL HOME BUILDER INTO A FORTUNE 500 COMPANY AND THE NATION'S FOREMOST LUXURY HOME BUILDER, A DISTINCTION EARNED THROUGH DECADES OF DEDICATION TO QUALITY, INNOVATION, AND EXCELLENCE. WE ARE THE PROUD RECIPIENTS OF NUMEROUS INDUSTRY AWARDS. WE DON'T BUILD HOUSES, WE BUILD HOMES WHERE FAMILIES PUT DOWN ROOTS, WHERE NEIGHBORS BECOME FRIENDS, AND WHERE LASTING MEMORIES ARE MADE. AS WAS SAID, THE SUBJECT PROPERTY IS 7.02 ACRES. WHAT MAKES THIS SITE PARTICULARLY COMPELLING IS ITS READINESS FOR REDEVELOPMENT. THIS IS A VACANT REMNANT PARCEL THAT HAS SAT UNDEVELOPED WITHIN AN OTHERWISE THRIVING COMMUNITY. CRITICALLY, THE SITE HAS ALREADY BEEN PREVIOUSLY GRADED AND IS FULLY IMPROVED WITH STREET INFRASTRUCTURE ALONG ALL THREE FRONTAGES. THIS SLIDE ILLUSTRATES THE SITE PLAN FOR OUR LUXURY RESIDENTIAL COMMUNITY AT BRESCIA RANCH. THE PROPOSED COMMUNITY WILL OFFER 105 FOR SALE TOWNHOME UNITS. EACH CRAFTED AS A THREE-STORY LUXURY RESIDENCE. ON THE TOPIC OF PARKING, WE WANT TO BE DIRECT. THIS PROJECT MEETS AND EXCEEDS THE CITY'S MINIMUM PARKING REQUIREMENTS. FIRE AND SAFETY WERE PRIORITIES FROM THE VERY FIRST DAY OF DESIGN. WE ENGAGED CARLSBAD'S FIRE DEPARTMENT EARLY AND COLLABORATIVELY, AND THE RESULTING SITE PLAN NOT ONLY [00:50:02] MEETS APPLICABLE FIRE SAFETY STANDARDS, BUT EXCEEDS WHERE FEASIBLE. THE PROJECT'S 18,626 SQUARE FEET OF COMMON OPEN SPACE IS A MEANINGFUL FIGURE, AND THE WAY THE SPACE IS DEPLOYED IS VERY IMPORTANT, ANCHORING GREEN SPACE ALONG THE COMMUNITY ENTRANCE. WE CREATE AN IMMEDIATE AND LASTING FIRST IMPRESSION, ONE OF OPENNESS, GENEROSITY, AND QUALITY FOR VISITORS, GUESTS, AND PROSPECTIVE BUYERS ALIKE. THIS IS THE TOLL BROTHERS DIFFERENCE. WE DON'T DESIGN TO THE MINIMUM. WE DESIGN TO THE EXPERIENCE. THIS SLIDE REPRESENTS THE FRONT ELEVATIONS, AND I THINK YOU SAW THAT PREVIOUSLY BEFORE. TAKEN TOGETHER, OUR ELEVATIONS ARE TANGIBLE EXPRESSIONS OF OUR DESIGN PHILOSOPHY. THAT ARCHITECTURAL INTEGRITY. NEIGHBORHOOD COMPATIBILITY AND LONG-TERM AESTHETIC VALUES ARE NOT COMPELLING PRIORITIES. THEY ARE ONE AND THE SAME. THIS RENDERING SPEAKS FOR ITSELF, BUT I WANT TO MAKE SURE THAT THE CONTRAST IS NOT LOST ON ANYONE IN THE CHAMBER TONIGHT. WHAT YOU ARE LOOKING AT IS NOT HYPOTHETICAL. IT IS A REALISTIC DEPICTION OF WHAT THIS SITE COULD BECOME IF IT REMAINS DESIGNATED PLANNED INDUSTRIAL AND IS DEVELOPED TO ITS SEVEN-ACRE ENTITLED USE. IN THE HEART OF BRESCI RANCH. TO BE CLEAR, THESE BUILDINGS ARE DESIGNED TO FUNCTION ALONE, WITH NO CONSIDERATION FOR HUMAN SCALE OR SURROUNDING NEIGHBORHOODS. THERE IS NO ARRIVAL SEQUENCE. THERE IS NO SENSE OF WELCOME. A MEANINGFUL QUESTION BEFORE THE COUNCIL IS NOT SIMPLY WHICH PROJECT IS PREFERRED, IT'S WHAT KIND OF NEIGHBOR THIS SITE WILL BE TO THE FAMILIES OF BRESCI RANCH FOR THE NEXT 50 YEARS. WE BELIEVE THE ANSWER IS CLEAR. MAYOR BLACKBURN AND MEMBERS OF THE CITY COUNCIL AND RESIDENTS OF CARLSBAD, THANK YOU. WHAT WE ARE ASKING FOR THIS EVENING IS SIMPLY THE OPPORTUNITY TO MOVE FORWARD, TO FORMALLY SUBMIT OUR APPLICATION FOR LAND USE ENTITLEMENTS, AND TO ENGAGE A FULL TRANSPARENT PROCESS THAT THE CITY OF CARLSBAD HAS ALREADY ESTABLISHED FOR EXACTLY THESE KINDS OF PROPOSALS. WE'RE NOT ASKING FOR A SHORTCUT, WE'RE ASKING FOR A SEAT AT THE TABLE. TOLL BROTHERS HAS BUILT ITS REPUTATION NOT BY PUSHING PROJECTS THROUGH, BUT BY WORKING ALONGSIDE COMMUNITIES TO CREATE SOMETHING EVERYONE CAN BE PROUD OF. WE STAND AT A BE-CAREFUL-WHAT-YOU-WISH-FOR MOMENT. THIS SITE HAS SAT VACANT FOR YEARS. WE BELIEVE ITS TIME HAS COME, AND WE BELIEVE TOLL BROTHERS IS THE RIGHT PARTNER TO UNLOCK ITS POTENTIAL IN A WAY THAT HONORS THE LEGACY OF BRESSIE RANCH AND SERVES THE LONG-TERM INTERESTS OF CARLSBAD. WE LOOK FORWARD TO THE JOURNEY AHEAD. AND WE SINCERELY THANK YOU FOR YOUR CONSIDERATION. THANK YOU. EXCUSE ME, SIR. WE TURN THE MICROPHONE ON. I'M SORRY. AND I'LL JUST TAKE ONE SECOND. WE JUST WANT YOU TO KNOW THAT WE HEARD EVERYTHING ABOUT WATER THIS EVENING. THIS PROJECT WITH THE SQUARE FOOTAGE AND WHAT'S GOING TO BE THERE WILL BE LESS IMPACTFUL TO TRAFFIC. WE KNOW WE HAVE TO DEMONSTRATE THAT. LESS IMPACTFUL TO WATER, WE KNOW WE'RE GOING TO HAVE TO DEMONSTRATE THAT. PART OF THE COMMUNITY AND WALKABILITY, WE KNOW WE'RE GOING TO HAVE TO DEMONSTRATE THAT. ALL OF THESE OPEN ITEMS, WE BELIEVE IS THE REASON WHY WE WOULD JUST WANT A CHANCE TO GO AHEAD AND GO THROUGH THE PROCESS, NOT HAVE WINNERS OR LOSERS PICKED AT ANY POINT, AND REALLY VET THIS THING OUT. SO IT CAN BE A BENEFIT TO THE COMMUNITY THAT WE'VE BEEN A PART OF IN EXCESS OF 25 YEARS AND HAVE A VERY LARGE INVESTMENT HERE. AND AGAIN, I APPRECIATE YOUR TIME THIS EVENING. THANK YOU. DOES COUNSEL HAVE ANY QUESTIONS, MR. LEVINE? NO QUESTIONS? THANK YOU. OKAY. NOW IT'S TIME TO OPEN PUBLIC TESTIMONY. DO WE HAVE ANY SPEAKERS? YES. SUSAN FERGUSON. GOOD EVENING. COUNCIL MEMBERS, I ASK YOU TODAY AS AN 18-YEAR RESIDENT OF BRESSEY RANCH AND MY HOME ABETS ON THAT LOT, ARE YOU REPRESENTING THE VOTERS AND RESIDENTS OF CARLSBAD OR ARE YOU REPRESENTING TOLL BROTHERS WHICH IS A SEVEN BILLION DOLLAR COMPANY THAT'S BASED OUT OF PENNSYLVANIA? SO I WANT YOU TO THINK ABOUT THE IMPACT THAT YOU HAVE ON OUR COMMUNITY. IT'S MY HOME, IT'S MY BIGGEST INVESTMENT, IT'S WHERE I'M RAISING MY CHILDREN, IT'S WHERE MY NEIGHBORS ARE RAISING THEIR CHILDREN. AND SO. THIS IS IMPORTANT, AND I THINK YOU'RE SETTING A PRECEDENT FOR YOUR COMMUNITY. WHEN YOU MAKE THIS DECISION, YOU KNOW, SAYING IT'S 111 HOMES, WELL, ONCE YOU MAKE THAT APPROVAL, THE FINAL APPROVAL, THEY CAN THEN SUBMIT ANOTHER REQUEST ON THE BENEFIT TO APPLY [00:55:01] FOR A DENSITY BONUS. AND THEN WE COULD BE LOOKING AT 150 HOMES, 160 HOMES, 300 HOMES ON A SEVEN-ACRE LOT. AND I'M TELLING YOU, THIS LOT IS NOT BIG. IT IS RIGHT UP THE STREET FROM A MAJOR PARK THAT IS WELL-TRAVELED BY BIKES AND THE COMMUNITY. ON A MAJOR INTERSECTION WHERE THERE ARE MONTHLY ACCIDENTS THAT HAPPEN AT THAT INTERSECTION. IN ADDITION, PARKING IS A CONCERN. IF YOU LOOK AT THE PLANS, THEY SAY THAT THEY ARE ADDRESSING PARKING CONCERNS, BUT THERE ARE ONLY 27 ADDITIONAL PARKING UNITS ON THEIR PLAN. AND AT LEAST MY COMMUNITY, A LOT OF PEOPLE DON'T PARK IN THEIR GARAGES. SO THESE PARKING SPOTS ARE GOING TO FILL UP QUICKLY. I MEAN, THAT IS JUST SOUTHERN CALIFORNIA LIFE. AND IF YOU LOOK AT THE ROADS, THERE'S NOT. PARKING THAT IS ALLOWED ON ANY OF THOSE ROADS THAT ABUT EACH OF THIS LOT. OKAY, SO WHERE DID THE ADDITIONAL PARKING GO? IT GOES INTO BRESCI RANCH, WHERE WE LIVE. IT GOES ONTO OUR STREETS, AND WE JUST ARE NOT SET UP FOR THAT. AS A COMMUNITY, WE HAVE PEOPLE FLYING THROUGH OUR NEIGHBORHOOD ALL THE TIME, GOING TO TRADER JOE'S, GOING TO THE GROCERY STORE TO PUT THIS BURDEN ON, YOU KNOW, A RELATIVELY SMALL COMMUNITY IS REALLY UNJUST AND UNFAIR. I URGE THE CITY COUNCIL ALSO TO CONSIDER THE FACT THAT VIASAT ONLY RECENTLY RELEASED THE OPTION ON THIS LOT. OTHER PROPERTIES HAVE NOT BEEN GIVEN THE TIME TO POSSIBLY PUT A GOOD BUSINESS INTO THIS LOT. HAVE THEY TRULY LOOKED FOR OTHER THINGS WITHOUT REZONING THAT COULD BE PUT ON THIS LOT? SO THESE ARE ALL CONSIDERATIONS. THIS IS A PERSONAL THING FOR ME AND FOR MY COMMUNITY. I'VE HEARD FROM 20, 30 OTHER OF MY NEIGHBORS THAT WOULD LIKE TO ALSO BE HERE TONIGHT. I KNOW MANY HAVE WRITTEN IN TO YOU TO VOICE THEIR OPINIONS, AND PLEASE TAKE THAT INTO CONSIDERATION. ADDITIONALLY, THE CITY WOULD BE INVESTING A LOT OF TIME INTO LOOKING AT THIS, SO THAT COULD POP UP. JACOB ERNST. GOOD EVENING, COUNCIL MEMBERS. FIRST OFF, YES, REZONING IS A SLIPPERY SLOPE, BUT I WANT TO GET INTO, I READ THE FIVE-YEAR STRATEGIC PLAN RELEASED BY THE CITY 2023 THROUGH 2027 TO ROLL THROUGH THOSE TOP FIVE. PUBLIC SAFETY REMAIN A TOP PRIORITY. PRESERVATION OF COMMUNITY CHARACTER. INFRASTRUCTURE AND TRAFFIC IMPACTS, LONG-TERM ECONOMIC AND PROPERTY VALUE CONCERNS, AND SUPPORT SMART, BALANCED HOUSING SOLUTIONS. SO, FOUR OF THE TOP FIVE IN THIS PROJECT, I WOULD SAY THIS PROJECT, I'M OPPOSING IT BECAUSE IT DOESN'T SATISFY ANY OF THOSE PROPERTY VALUES MISSTATED BY THE TOLL BROTHER REPRESENTATIVE FOR BREZZI. I HAVE TALKED TO, AND I'VE LIVED IN THE COMMUNITY FOR 12 YEARS, TALKED TO THE HOA PRESIDENT FROM LA COSTA GREENS AS WELL AS BREZZI RANCH. AND AS SUSAN STATED, THERE ARE MANY MEMBERS. I KNOW THEY RELEASED EMAILS SAYING THAT THE OPPOSITION WAS HIGH. I SAW THE TRAFFIC IMPACT. IF YOU LOOK AT FIVE OR YOU CAN LOOK AT THE TOP 10 MOST COMMON TRAFFIC INCIDENTS AREAS. TWO OF THEM ARE WITHIN A MILE OF WHERE NOW THEY WANT TO PUT 111 APARTMENTS, WHICH WOULD APPROXIMATELY SHIP IN ITS MEDIUM TO HIGH DENSITY IF YOU LOOK AT CALIFORNIA LAW. SO THAT WOULD PUT IN, LET'S CALL IT 230 PEOPLE. THOSE TWO AREAS THAT ARE ON THE TOP THREE MOST COMMON TRAFFIC ACCIDENTS ARE PALOMAR AND MELROSE, WHICH IS RIGHT NEXT TO THAT, AND EVEN CLOSER, PALOMAR AND EL CAMINO, WHICH IS, IF YOU LOOKED AT THAT MAP, ONE BLOCK AWAY. SO YOU'RE ADDING... MORE TRAFFIC IMPACT TO TWO OF THE HIGHEST ACCIDENT RATES OVER THE PAST FIVE YEARS, WHICH FOR NUMBER TWO, PRESERVATION OF COMMUNITY CHARACTER. I KNOW THEY SHOWED A MOCK-UP OF A BUILDING BACK SIDE, WHICH, I MEAN, OBVIOUSLY I CAN CHAT GBT A MOCK-UP THAT WOULD MAKE THAT LOOK A LOT BETTER, BUT ALL THE TOP FIVE FOR THE STRATEGIC PLAN, THE FIRST FOUR, JUST COMPLETELY GO AGAINST IT. I WOULD URGE YOU TO NOT GO DOWN THE SLIPPERY SLOPE OF REZONING THIS AND THEN HAVING, AS SUSAN SAID, SOMEBODY COME IN AND PUT ANOTHER PROJECT PLAN THAT SUDDENLY GETS ACCEPTED WHEN YOU GUYS ARE GONE. SO APPRECIATE YOUR TIME AND SUPPORT IN THE COMMUNITY AND EVERYTHING YOU GUYS DO. HAVE A GOOD EVENING. [01:00:02] CHRIS WRIGHT. I REPRESENT ELUA, AND WE ARE ASKING THAT THE COUNCIL OPPOSE THIS GENERAL PLAN AMENDMENT REQUEST DUE TO OUR FINDINGS AND UNANSWERED QUESTIONS FOR THE FOLLOWING REASONS. THE PRIMARY GOAL CONSIDERED IN THE APPROVAL OF THE ORIGINAL BRESLEY RANCH MASTER PLAN IS TO CREATE A PEDESTRIAN-ORIENTED COMMUNITY WHERE THE USE OF AUTOMOBILE CAN BE MINIMIZED WITH A STRONG MIXED-USE COMPONENT THAT INCLUDES RESIDENTIAL, COMMERCIAL, OFFICE, AND INDUSTRIAL USES IN CLOSE PROXIMITY. FINDINGS WITHIN BOTH THE PALOMAR AIRPORT MASTER PLAN UPDATE AND THE PALOMAR AIRPORT LAND USE COMPATIBILITY PLAN SHOWS THAT THE PROPOSED POSSIBLE PROPERTY IS LOCATED WITHIN THE OVERLAY ZONES LISTED AS SAFETY ZONE THREE AND SIX RESPECTIVELY. THE PROJECT SITE SHOWN IN THE GREEN BOX IS ABOUT 03,000 FEET FROM THE EAST END OF THE AIRPORT RUNWAY. SITE THREE HAS SEVERE RESTRICTIONS ON DENSITY, WHICH ALLOWS NO MORE THAN 16 DWELLING UNITS PER ACRE. THE CURRENT APPLICATION IS SEEKING... IS SEEKING R23 RESIDENTIAL LAND USE GENERAL PLAN AMENDMENT WITH A DESIGNATION OF 15.8 DWELLING UNITS PER ACRE UNDER THE LIMIT OF THE SAFETY ZONE THREE RESTRICTION. CURRENTLY, THE R23 DESIGNATION ENCOMPASSES 19 TO 23 UNITS PER ACRE, WHICH SEEMINGLY VIOLATES THE SAFETY ZONE THREE RESTRICTIONS. IF THE PROPOSED PROJECT IS ALLOWED TO EXPIRE OR IS AMENDED, STATE DENSITY BONUS LAW YOU COULD ALLOW UP TO DOUBLING OF THE MAXIMUM DENSITY TO 46 UNITS PER ACRE, WHICH COULD ALLOW UP TO 322 TOTAL UNITS ACCORDING TO THE COMMUNICATION WITH THE CITY STAFF IF A NEW FORMAL APPLICATION IS SUBMITTED. ALSO, RENA NUMBERS ARE MET FOR THIS CYCLE, AND THE PLANNED AIRPORT EXPANSION MAY UPGRADE THE LAND USE COMPATIBILITY TO AN EVEN MORE RESTRICTIVE SAFETY ZONE. WE HAVE CONCERNS ABOUT THIS LAND USE. REQUEST TO RESIDENTIAL. WE KNOW THERE WILL BE A LOSS OF LOCAL CONTROL AFTER ANY CHANGES TO RESIDENTIAL. WE KNOW THAT THE BRESCI RANCH MASTER PLAN WILL BE COMPROMISED AND A SPOT LAND USE REVIEW THOROUGHNESS AND COSTS ARE CONCERNED, AS WELL AS SAFETY FOR NEW RESIDENTS WHO WOULD BE LOCATED INTO AN AIRPORT OVERLAY ZONE, ENVIRONMENTAL IMPACTS LOCATED WITHIN A HIGH VMT AREA, AND INFRASTRUCTURE IMPACTS SUCH AS TRAFFIC. WE REQUEST THAT YOU ASK STAFF THE FOLLOWING QUESTIONS. ONE, DOES PROXIMITY TO THE AIRPORT AFFECT THE PROPOSED UNIT DENSITY AND OR MAXIMUM BUILDING HEIGHT? IF SO, WOULD AN AIRPORT SAFETY ZONE DENSITY LIMITATION BE INTERPRETED BY HCD AS SAFETY EXCEPTION TO STATE HOUSING LAWS? TWO, WOULD PLANNED AIRPORT EXPANSION CHANGE ANY OF THIS FOR WHAT ARE THE COSTS TO PROCESS THESE INDIVIDUAL REQUESTS FOR LAND USE CHANGES AND SHARON MCDONALD THANK YOU FOR YOUR TIME IN ADVANCE SO I WAS REALLY JUST HERE TO SHARE MY OPINION, VOICE, YOU KNOW, MY SUPPORT ACTUALLY OF THE PROJECT. I THINK THAT OBVIOUSLY WE'VE HEARD THESE ARGUMENTS BEFORE WITH EVEN KENSINGTON ON THE SQUARE, WHICH IS ALSO A HIGH-DENSITY PROJECT IN BRASSY, AND I JUST WANTED A VOICE THAT I SUPPORTED ONLY BECAUSE I THINK IT WOULD BE IMPORTANT TO ALLOW PEOPLE ACCESS TO CARLSBAD WITHOUT IT BEING AN AVERAGE PRICE OF OVER $2 MILLION, AND IT WOULD OFFER PEOPLE THE ABILITY TO ALSO BE IN A GREAT SCHOOL DISTRICT. AND I FEEL IT WOULD BE A REALLY GOOD USE OF THE LAND INSTEAD OF ANOTHER INDUSTRIAL BUILDING. AND I JUST WANTED TO VOICE MY SUPPORT. AND, YOU KNOW, THANK YOU. THANK YOU FOR YOUR TIME AND THANK YOU FOR WHAT YOU DO. THERE ARE NO ADDITIONAL SPEAKERS. THEN I'LL CLOSE THE PUBLIC TESTIMONY DISCUSSION FROM WELL, BEFORE WE GO TO THAT, STEPH, WILL YOU CHRIS WRIGHT. HAD A LIST OF QUESTIONS, PLUS WE HAD A FEW OTHER QUESTIONS THAT WERE BROUGHT UP. DID YOU TAKE NOTE OF THOSE QUESTIONS? IF NOT, I DID. SEE IF WE CAN ANSWER THOSE TO THE BEST OF OUR ABILITY. SURE. I'LL START AND FEEL FREE TO ASK IF I MISSED ANYTHING. SO RELATED TO THE AIRPORT LAND USE COMPATIBILITY PLAN, THIS MAP SHOWS THE AIRPORT AS WELL AS THE DIFFERENT SAFETY ZONES. [01:05:01] AS THE COMMENTER SPOKE TO, THE SITE ITSELF IS BISECTED WITH TWO OF THE SAFETY ZONES. IN THE PINK HERE IS SAFETY ZONE 3, WHICH ONLY ALLOWS UP TO 16 UNITS PER ACRE. BETWEEN 13 AND 16, THERE ARE SOME RESTRICTIONS. IN THE YELLOW IS SAFETY ZONE 06, WHICH DOES ALLOW RESIDENTIAL DENSITY. THE APPLICANT IS AWARE OF THIS, AND IF THEY MOVE FORWARD, THEY WOULD HAVE TO COMPLY WITH BOTH OF THESE REQUIREMENTS WITH THEIR PROPOSED DESIGNATION. THEY WOULD ALSO NEED TO MAKE THEIR REQUIREMENT EITHER FIT BY REQUESTING THE R15 DESIGNATION, WHICH WOULD ONLY ALLOW UP TO 15. AND POTENTIALLY LOSE SOME UNITS. AS PART OF THE HOUSING ELEMENT, THE R23 DESIGNATION WAS MOVED TO GO UP TO 19 TO 23 ACRES. THE PROJECT ITSELF IS PROPOSED AT 15.8 ACRES. RELATED TO THE ABSOLUTE HEIGHT MINIMUM, THIS MAP SHOWS WHERE THE AIRPORT IS AND WHERE PROJECTS NEED TO BE REVIEWED BY A PROCESS CALLED THE PART 77 PROCESS WITH THE FAA. AND SO WHAT THAT IS, IS HOW TALL CAN A BUILDING BE IN PROXIMITY TO THE AIRPORT? THERE WILL NEED TO BE A REVIEW. THE AIRPORT ITSELF IS ABOUT 330 FEET ABOVE MEAN SEA LEVEL. THE PROJECT SITE IS ACTUALLY SLIGHTLY BELOW THAT DUE TO THE TOPOGRAPHY. THERE WOULD BE SOME SORT OF RESTRICTION, AND WE DO BELIEVE THAT THESE RESTRICTIONS FROM A SAFETY PERSPECTIVE COULD BE SOME THINGS TO FEND OFF SORT OF A DENSITY BONUS REQUEST IN THE FUTURE, BUT SOME OF THAT WOULD HAVE TO BE EVALUATED SPECIFICALLY, AND SOME OF THAT COULD BE PRODUCT TYPES THAT ARE STILL ABOVE A HIGH TOWNHOME. SO FOR EXAMPLE, THERE ARE BUILDINGS AND PROJECTS THAT GO UP TO 45 FEET TALL IN THIS VICINITY AND HAVE MET THROUGH AND GONE THROUGH THIS PROCESS. BUT WHAT YOU HAVE TO DO IS EVALUATE WHERE ARE YOU IN PROXIMITY TO THE AIRPORT AND HOW TALL CAN YOU BE, WOULD IT BE WITHIN THE FLIGHT PATH. THE PROJECT AS PROPOSED IS ABOUT 30 FEET. THE PREVIOUS PROJECT THAT WAS APPROVED AND DID DO AN EVALUATION WAS ABOUT 45 FEET. RELATED TO THE COST, THE APPLICANT HAS PROVIDED A FULL COST. FOR THE FULL REVIEW OF THE PROJECT. JUST A SUMMARY OF WHAT THEY PROVIDED IS HERE. THEY'VE PAID US APPROXIMATELY $75,000 TO ACCOUNT FOR OUR STAFF TIME. COMPLIANCE WITH CALIFORNIA ENVIRONMENTAL QUALITY ACT WILL REQUIRE MORE FEES AND LIKELY REVIEW AND COSTS AT THEIR BURDEN THROUGH HIGHER CONSULTANTS AS WELL AS TO HIGHER CONSULTANTS TO HELP SUPPORT US WITH A THIRD-PARTY REVIEW. RELATED TO IF THIS WOULD BE AS RIGOROUS OF A PROCESS, I MEAN, THIS WOULD GO THROUGH OUR FULL... PROJECT PROCESS AND THEY WOULD BE REQUIRED TO DO ALL OF THE ENHANCED STAKEHOLDER OUTREACH, WHICH IS NOW BROADENED. THE PROJECT ITSELF, WE WOULD NOT BE DOING THE OUTREACH ON BEHALF OF THE PROJECT LIKE WE DID THE HOUSING ELEMENT, BUT IT WOULD STILL NEED TO GO THROUGH A RANGE OF PUBLIC OUTREACH RELATED TO THAT. RELATED TO FUTURE PROJECTS ON THE SITE, THE PROJECT IS REQUESTING A GENERAL PLAN AMENDMENT AS WELL AS SOME OTHER DISCRETIONARY ACTIONS. THE GENERAL PLAN AMENDMENT DOES NOT EXPIRE. AND THE GENERAL PLAN AMENDMENT IS NOT SOMETHING THAT WE CAN PROVIDE CONDITIONS ONTO. AND SO IF THE GENERAL PLAN AMENDMENT IS APPROVED AND THOSE OTHER SUBDIVISION, OTHER THINGS EXPIRE OR LET GO SOMETHING ELSE, THERE COULD BE ANOTHER PROPOSAL WITH THE GENERAL PLAN ON THE SITE AND THEN OTHER STATE LAWS COULD GO IN AND APPLY. THERE'S A LOT OF COMMENTS ABOUT TRAFFIC, IMPACT TO SCHOOLS, THAT KIND OF THING. WE'RE JUST HAVE NOT EVALUATED ALL THOSE DETAILS AT THIS TIME. THAT WOULD BE EVALUATED IN A FUTURE PROJECT REVIEW PROCESS. SO I THINK I COVERED MOST OF THE COMMENTS, BUT IF THERE'S ANYTHING THAT YOU NOTED THAT I MISSED, PLEASE LET ME KNOW. ANY FOLLOW-UP QUESTIONS FROM STAFF? MS. BURKHOLDER? THANK YOU, MR. LARDY. JUST A QUICK ONE. I REALIZE WE HAVEN'T DONE THE TRAFFIC STUDY ON THIS PARTICULAR PROJECT, BUT JUST IN GENERAL TERMS, WOULD YOU SAY THAT THE TRAFFIC SURROUNDING COMMERCIAL IS WORSE, EQUAL TO, OR LESS THAN TRAFFIC SURROUNDING RESIDENTIAL? FROM A NUMBER OF TRIPS PERSPECTIVE, RESIDENTIAL WOULD BE LESS TRIPS. WE WOULD NEED TO EVALUATE HOW THAT IMPACTS THE OVERALL CIRCULATION. AND WHERE THOSE TRIPS ARE GOING. THANK YOU. YOU ANSWERED MY OTHER QUESTIONS. ANY OTHER FOLLOW-UP QUESTIONS? I HAVE A COUPLE. I JUST WANT TO CONFIRM, THE PROPERTY OWNER, IF HE'S ALLOWED TO GO TO THE NEXT PHASE, HE BEARS ALL EXPENSES, THE CITY AND TAXPAYERS DON'T? DID I UNDERSTAND THAT CORRECTLY? YES, THROUGH THEIR FEES AND HIRING OF CONSULTANTS, THE BURDEN WOULD BE ON THEM. THERE'S A LOT OF CONCERNS ABOUT... DENSITY BONUS AND EXPIRING SITE PLANS AND THINGS LIKE THAT, THAT'S NOT IN QUESTION AT THIS POINT. RIGHT NOW, THE ONLY QUESTION THAT'S BEING ASKED IS, CAN THEY BRING FORWARD A PROJECT FOR CONSIDERATION? IS THAT ACCURATE? THERE'S NO PROJECT UNDER CONSIDERATION. SO WHEN TOLL BROTHERS SHOWED THIS PROJECT THAT THEY'RE CONSIDERING, THAT'S NOT WHAT WE'RE VOTING [01:10:02] ON TODAY, IS IT? YOU'RE NOT BEING ASKED TO VOTE ON THE MERITS AND THE INDIVIDUAL DESIGN DETAILS OF THE PROJECT, JUST CONCEPTUALLY THE CHANGE RELATED TO IT. SO I JUST WANT TO BE SURE, YOU DID A GREAT PRESENTATION WITH A LOT OF DETAIL, BUT FOR THOSE OF US WHO DON'T DO WHAT YOU DO FOR A LIVING, WOULD IT BE FAIR TO SAY THAT IN A BRIEF EXPLANATION THAT RIGHT NOW WE'RE JUST DECIDING WHETHER WE'RE GOING TO LET THE APPLICANT... BRING FORWARD A PROPOSAL. WE HAVEN'T APPROVED THE PROPOSAL OR ANYTHING LIKE THAT. IS THAT RIGHT? WE'RE JUST GIVING THEM PERMISSION TO BRING FORWARD A PROPOSAL? CORRECT. THIS IS PERMISSION TO CONTINUE WITH THEIR PROPOSAL. ANY OTHER QUESTIONS FROM COUNCIL? COMMENTS? MR. SHIN. THANK YOU, MAYOR. THANK YOU FOR THE PRESENTATION. I REALLY APPRECIATE THE PUBLIC AS WELL AS THE PROPERTY OWNER TO ARRIVE AND JUST PROVIDE SOME OPINIONS. A LOT OF THIS IS KIND OF JUST REFLECTS BACK TO WHAT WE DID IN JULY AND JULY WAS JUST SO THAT WE WOULDN'T HAVE BIASES TOWARDS THOSE THAT HAVE PROPERTIES AND WISHING TO JUST FILE AN APPLICATION. AND SO IN THAT REGARDS, I JUST SEE THIS AS A PROCESS IN WHICH THE PROPERTY OWNER AND THE DEVELOPER WANTS TO COME IN. IT'S THEIR RISK AND LIABILITY. THIS IS ABOUT A YEAR OR TWO PROCESS THAT WILL TAKE PLACE AND THEN WE'LL REVIEW AND SEE WHAT TAKES PLACE. IT ALSO ALLOWS THE PUBLIC TO REALLY, REALLY TRULY PROVIDE THEIR VOICE AND OPINION ON THIS MATTER AS OPPOSED TO THE FACT THAT THEY DIDN'T EVEN NEED TO SHOW UP. THIS COULD HAVE JUST BEEN A QUESTION OF WHETHER OR NOT AN APPLICATION IS GOING TO GO THROUGH. IT WAS PROBABLY A DOUBLE-EDGED SWORD FOR THEM TO PROVIDE VISUALS BECAUSE THAT KIND OF SKEWS YOUR BIAS ONE WAY OR ANOTHER. I'VE SEEN BOTH. THINGS TAKE PLACE IN KIND OF CLOSE TO WHERE I GREW UP IN TORRANCE, CALIFORNIA, WHERE THEY WERE BUILDING AND STACKING FROM REZONING TO RESIDENTIAL AND ALL OF A SUDDEN THE COMMERCIAL WOULD POP UP AND THEN A PLANNED INDUSTRIAL WOULD POP UP. AND IT'S DRAMATIC WHEN YOU SEE ANY OF THIS, RIGHT? RIGHT NOW YOU GUYS SEE AN OPEN FIELD, BUT JUST KNOW THAT EVENTUALLY IT HAS TO GET DEVELOPED INTO SOMETHING. AND I WOULD TAKE CAUTION AND INFORM THE PUBLIC EXACTLY WHAT THOSE OPTIONS COULD BE. I HAVE SEEN IT WHERE IT DOES LOOK LIKE THAT IMAGE EVEN THOUGH IT WAS A MOCK-UP, BUT WHEN PLANNED INDUSTRIAL ZONES HAVE AN OPPORTUNITY TO DO COURIER SERVICE WITH COMMERCIAL VEHICLES, IT'S A DISRUPTIVE PROCESS THAT CAN TAKE PLACE EARLY IN THE MORNING AND ALL THE WAY THROUGH THE EVENING AND THROUGHOUT THE COURSE OF THE DAY. SO THERE'S JUST A LOT OF THINGS TO BE TEED UP, BUT PUSHING ALL THAT ASIDE, THIS REALLY IS JUST ABOUT... THE PROCESS OF AN APPLICATION TO BE TURNED IN, AND THEN IT'LL GET BACK TO US IN A FEW YEARS. AND FROM THAT POINT ON, AFTER THE PUBLIC HAS REALLY VETTED THIS THING THROUGH, THE DEVELOPERS HAVE REALLY HEARD, AND LET'S SEE IF THEY'VE HEARD, THEN THAT'S GREAT. I WOULD SAY IF THERE'S A RISK OF ALL OF A SUDDEN THE PROPERTY BEING ONE THING THAT WE'RE BEING SHOWN RIGHT NOW, AND THEN ALL OF A SUDDEN WE'RE DUPED INTO A DENSITY BONUS ISSUE OF WHETHER THEY ARE ALLOWED TO DO IT, THERE IS A SOLID SENSE OF MISTRUST FOR ANY DEVELOPER TO GO OUT THERE AND SAY, HEY, WE'RE PITCHING YOU THIS ONE THING AND THEN FLIPPING THE SCRIPT. AND MAKING IT COMPLETELY SOMETHING THAT WE DIDN'T DO. SO I WOULD HEED WARNING TO ANYONE WHO SHOWS UP TO THIS CITY TO REALLY PUT A MASK ON ONE THING AND DO ANOTHER. IT WOULD SHOW MISTRUST IN THE FUTURE OF OTHER PLANS THAT WE WOULD DO MOVING FORWARD AND MAYBE SET THE WRONG TONE. SO THAT'S ALL I HAVE. MS. BURKHOLDER. THANK YOU, MAYOR. I THINK I SORT OF AGREE WITH MY COLLEAGUE HERE THAT THIS SEEMS LIKE AN OPPORTUNITY FOR RESIDENTS, PARTICULARLY AT BRESCI, TO GIVE FEEDBACK AND WHAT THEIR EXPECTATIONS ARE. WE DO HAVE A HIGH LEVEL OF EXPECTATION HERE IN CARLSBAD, AND WE EXPECT THE BEST FROM THE DEVELOPERS AND ALSO THAT THEY ARE GOOD NEIGHBORS. I STRUGGLE WITH THIS IN MY DISTRICT, AND I TALK ABOUT IT UP HERE ALL THE TIME, SO I THINK IT'S REALLY IMPORTANT TO OPEN THAT DIALOGUE. AND IT SOUNDS LIKE YOU'RE WILLING TO ACCEPT FEEDBACK FROM RESIDENTS, AND I THINK THAT'S THE BEST WAY TO HAVE THE PROCESS. IF YOU'RE GOING TO HAVE SOME DEVELOPMENT IN YOUR COMMUNITY, YOU WANT TO BE ABLE TO GIVE FEEDBACK. SO I WELCOME THAT OPPORTUNITY, AND THEN, OF COURSE, WE DO HAVE PROCESSES THROUGHOUT THAT THAT WALK ALONGSIDE AND MAKE SURE THAT THE RESIDENTS ARE BEING HEARD. AND THIS IS FOR US AS TAXPAYERS. EVERY DOLLAR THAT THEY'RE PAYING THAT WE'RE NOT PAYING IS A GOOD THING BECAUSE THEY'RE GOING TO BE PROVIDING ALL OF THAT. OPPORTUNITY TO GIVE THAT FEEDBACK. SO I AM INCLINED TO SUPPORT OPTION NUMBER ONE. THANKS. MR. COSTA. THANK YOU. THANKS TO STAFF FOR THE PRESENTATION AND TO THE COMMUNITY FOR THE PUBLIC COMMENT, NOT JUST HERE TODAY, BUT ON EMAIL AND THE OUTREACH THAT YOU HAVE ALL DONE SO FAR. WE DON'T HAVE A LOT TO WEIGH IN ON OTHER THAN WE SEE THAT VACANT LOT THERE, AND THERE'S JUST KIND OF AN IDEA WHAT WOULD IT LOOK LIKE IF IT HAD 111 UNITS. [01:15:01] AND YOU HAD THE RENDERING, YOU HAD THE VERY BASIC SKETCH PROVIDED BY THE DEVELOPER. I THINK THE MOST IMPORTANT THING IS THAT HOUSING DEVELOPMENT IS DONE RIGHT IN CARLSBAD. WE KNOW WE NEED TO DEVELOP. WE KNOW THAT THERE'S A HOUSING SHORTAGE. WE KNOW WE SEE A LOT OF YOUNG PEOPLE HERE TODAY. I HAVE A DAUGHTER. MANY OF US ARE VERY TIED TO THE NEXT GENERATION, AND WE'RE VERY CONCERNED FOR THEM. THEY'RE NOT GOING TO BE ABLE TO AFFORD TO LIVE IN CARLSBAD. I MEAN, WE KNOW THAT WITH OVER $1.5 MILLION MEDIAN HOME PRICE. SOMEBODY SAID $2 MILLION. I THINK IN SOME AREAS IT IS IN CARLSBAD, $2 MILLION TO AFFORD A HOME HERE. IT'S SOMETHING WE ARE TASKED WITH ADDRESSING, AND IT'S HARD. SO AS PROPOSALS COME FORWARD, YOU KNOW, WE'RE ALWAYS THINKING WE NEED TO MAKE SURE THAT WE HAVE PROCESSES IN PLACE WHERE THEY'RE WORKING CLOSELY WITH OUR STAFF, WE ARE COMPLIANT WITH THE LAW, AND WE HOPE THAT THERE'S A LOT OF OUTREACH TO THE COMMUNITY. WE NEED IT DONE RIGHT AND WITH SENSITIVITY. I'M VERY PLEASED TO SEE THE PROPOSERS HERE. THE PROPOSAL, AS IT IS SO FAR AT THIS VERY EARLY STAGE, INCLUDE A LOT OF COMMITMENT TO OUTREACH TO THE RESIDENTS AND TO TALKING ABOUT WHAT THIS COULD LOOK LIKE. OBVIOUSLY, THERE ARE RESTRICTIONS ON THIS PROPERTY, AND THAT WAS THE FOLLOW-UP QUESTION THAT MR. LARDY ANSWERED. AROUND THE AIRPORT HEIGHTS AND THINGS LIKE THAT. SO WE'LL SEE. IT MAY NOT LOOK ANYTHING LIKE WHAT WE SAW IN THE SKETCHES HERE TODAY, BUT I DO THINK WE SHOULD ALLOW FOR THIS TO MOVE FORWARD, KEEPING IN MIND WE HAVE A HOUSING CRISIS. THERE ARE MANY PEOPLE WHO WANT IN. WE CAN'T JUST MOVE INTO CARLSBAD AND CLOSE THE DOOR BEHIND US FOR THE NEXT GENERATION. WE NEED TO BE ABLE TO PROVIDE WORKFORCE HOUSING OPTIONS, ESPECIALLY FOR THE FUTURE GENERATIONS. SO I'M OPEN-MINDED AND WILLING TO SEE WHAT IT WOULD LOOK LIKE IF THIS MOVES FORWARD. THANK YOU. YEAH, THANK YOU. AND THANK YOU FOR THE PRESENTATION AND TO ALL THOSE INDIVIDUALS THAT HAVE GENERATED SOME EMAILS AND CALLS. AND I KNOW THIS CONVERSATION HAS BEEN HAPPENING. I THINK I'VE HAD AN OPPORTUNITY TO MEET WITH MANY OF THE HOAS AND OTHER FOLKS AND I JUST WANT TO SHARE FROM THE PERSPECTIVE OF SOMEBODY WHO'S A MILLENNIAL. AND SOMEBODY WHO HAS GROWN UP HERE MY ENTIRE LIFE AND IS RAISING THE NEXT GENERATION OF CHILDREN WHO HOPEFULLY WILL COME BACK AND LIVE HERE OR HOPEFULLY WILL STAY HERE IN CARLSBAD. AS A PUBLIC HEALTH PROFESSIONAL, I SEE HOUSING AS A PUBLIC HEALTH ISSUE. IT REALLY DETERMINES HOW LONG PEOPLE LIVE, THEIR ACCESS TO OPPORTUNITY, AND I'VE BEEN PRIVILEGED TO HAVE THAT ACCESS TO THAT OPPORTUNITY BECAUSE OF WHAT MY PARENTS DID FOR ME. CHOOSING THIS COMMUNITY. AND I HAVE TO SAY THAT, YOU KNOW, I KNOW THAT TODAY AND ANY TIME WE HAVE CONVERSATIONS AROUND LAND USE IS VERY DIFFICULT AND CHARGED. AND I THINK THAT THE HARD PART IS, IS THAT YOU'RE SEEING THE ABILITY FOR FOLKS, FAMILIES LIKE MINE, TO HAVE THAT ABILITY TO ACTUALLY PURCHASE A TOWNHOME, RIGHT? SO TOWN OR EVEN A HOME. I THINK JUST BEING ABLE TO HAVE THE MISSING MIDDLE. REFLECTED, YOU CAN SEE THAT IN OUR COMMUNITY. THE FOLKS THAT ARE, YOU KNOW, MIDDLE INCOME, UPPER MIDDLE INCOME, THEY ACTUALLY CAN'T AFFORD TO PURCHASE HERE IN CARLSBAD. AND MANY OF THEM ARE ACTUALLY SERVING OUR COMMUNITIES. THOSE ARE OUR TEACHERS, OUR FIRST RESPONDERS. I TALK TO FOLKS DAY IN AND DAY OUT THAT SERVE OUR COMMUNITY, THAT ACTUALLY HELP US LIVE THIS AMAZING QUALITY OF LIFE, AND THEY HAVE TO DRIVE HOURS TO COME AND SERVE HERE. AND SO TO ME, THAT PART IS WHERE I'M THINKING, OKAY, HOW DO WE MAKE SURE THAT WE CAN AT LEAST HAVE A CONVERSATION? FOR ME, IT'S ABOUT MAKING SURE WE DON'T JUST SHUT IT DOWN IMMEDIATELY. WE ACTUALLY HAVE A CONVERSATION, AND I'D LIKE TO SEE THOSE OPTIONS BEFORE WE DECIDE, DOES THIS WORK FOR OUR COMMUNITY OR NOT? I AGREE WITH THINGS THAT MY COLLEAGUES HAVE SAID. WE ARE NOT JUST TAKING A COOKIE-CUTTER APPROACH TO THINGS, AND WE WANT TO MAKE SURE THAT WHAT WE SEE IS REFLECTIVE OF WHAT OUR COMMUNITY WOULD WANT. AND WITH THAT ROBUST COMMUNITY OUTREACH AND THE CONVERSATION, HOPEFULLY, GETS THERE IF WE GET TO THAT POINT, RIGHT? WE HAVEN'T MADE THAT DECISION. IF IT GETS TO THAT POINT, THIS JUST ALLOWS FOR A POTENTIAL CONVERSATION TO HAPPEN. BUT I DO HOPE THAT, YOU KNOW, WE HAVE THE ABILITY TO JUST HEAR FROM OUR TEACHERS, OUR NURSES, OUR FIRST RESPONDERS, ALL OF THOSE PEOPLE, THOSE YOUNG WORKING CLASS FAMILIES THAT HAVE BEEN ASKING FOR MORE OPPORTUNITY TO BE ABLE TO PUT ROOTS DOWN HERE. AND SO HOPEFULLY WE CAN HAVE THOSE CONVERSATIONS. AND OF COURSE, TO THE HOAS, THE NEIGHBORS. WHO HAVE HAD THOSE CONCERNS AND HAVE REACHED OUT. I, OF COURSE, HEAR YOU. I HAVE KNOCKED ON THOSE DOORS. I HAVE TALKED TO THOSE FOLKS. AND I WANT TO MAKE SURE THAT I CAN CONTINUE TO LISTEN. SO PLEASE DO REACH OUT. [01:20:01] I AM ALWAYS OPEN TO CONVERSATION. AND BETWEEN NOW AND WHENEVER THIS COMES BEFORE US AGAIN, I HOPE THAT I CAN HAVE THE ABILITY TO CHAT WITH YOU ALL, SIT DOWN WITH YOU, AND HAPPY TO TAKE THAT FEEDBACK. SO THAT'S WHERE I'M AT WITH THIS. THANK YOU. THANK YOU TO THE SPEAKERS WHO CAME IN HERE TODAY. THOSE OF US ON THE COUNCIL, WE'RE HUMAN. WE UNDERSTAND YOUR CONCERN. WE UNDERSTAND YOUR PROTECTIVENESS OF YOUR HOME, OF YOUR NEIGHBORHOOD, AND YOU WANT THAT QUALITY OF LIFE TO CONTINUE. BUT PLEASE UNDERSTAND THAT THIS IS NOT AN APPROVAL OF A PROJECT. TO SIMPLIFY IT, I KNOW IT'S BEEN SAID 20 TIMES, JUST UNDERSTAND THIS IS JUST GIVING THE PROPERTY OWNER THE PERMISSION TO BRING A PROPOSAL FORWARD. THERE'S STILL OFF-RAMPS FOR THIS COUNCIL. IF WE LOOK AT IT AND FEEL UNCOMFORTABLE WITH THE PROPOSAL, WE STILL HAVE MORE OFF-RAMPS AHEAD OF US WHERE WE CAN DENY ANY FURTHER PROGRESS. SO I JUST WANT TO MAKE SURE THAT THE RESIDENTS DON'T GO HOME THINKING THEY LOST TODAY BECAUSE YOU DIDN'T. THIS IS ACTUALLY GOING TO BE A POSITIVE. NOW THE DEVELOPER AND THE PROPERTY OWNER IS GOING TO HAVE TO MEET WITH YOU, HEAR YOUR CONCERNS, ADJUST ACCORDINGLY. AND I DRIVE BY THAT PROPERTY, AND I SEE A... CHAIN LINK FENCE WITH WOOD SLATS IN IT AND IF I LIVED IN THE AREA I WOULDN'T WANT THAT AND I DON'T THINK THAT I WOULD WANT A PARKING STRUCTURE OR AN INDUSTRIAL BUILDING THERE SO MAYBE AT THE END OF ALL OF THIS THE RESIDENTS WILL GET A PROJECT THAT THEY'RE GOING TO BE PROUD TO HAVE AS THEIR NEIGHBORS FINGERS CROSSED BUT THERE WILL BE A PROCESS THAT GIVES THE THE PEOPLE WHO LIVE IN BRESCI AND THE NEIGHBORING NEIGHBORHOODS AN OPPORTUNITY TO HAVE A LOT OF SAY IN WHAT THIS IS GOING TO LOOK LIKE SO I'M ALSO GOING TO SUPPORT THIS. SO I NEED A MOTION, PLEASE. SURE. SO MOVE ADOPTION OF THE RESOLUTION REMANDING BACK TO CITY STAFF. SECOND. PLEASE VOTE. THAT PASSES UNANIMOUSLY. WE'VE BEEN IN SESSION FOR AN HOUR AND 20 MINUTES. LET'S TAKE A 10-MINUTE BREAK AND COME BACK JUST SHORTLY AFTER 6.30. [10. APPROVAL OF THE 2025 URBAN WATER MANAGEMENT PLAN AND WATER SHORTAGE CONTINGENCY PLAN] CALLING THE MEETING BACK TO ORDER. ITEM NUMBER 10, CITY MANAGER, PLEASE. ITEM 10 IS THE APPROVAL OF THE 2025 URBAN WATER MANAGEMENT PLAN AND WATER SHORTAGE CONTINGENCY PLAN. AND FOR THE PRESENTATION, WE HAVE PRINCIPAL ENGINEER CARRIE MARTINEZ AND ASSISTANT UTILITIES DIRECTOR DAVE PADILLA. HI, GOOD EVENING, AND THANK YOU, CITY MANAGER. I'LL BE GIVING AN OVERVIEW OF THE CARLSBAD MUNICIPAL WATER DISTRICT'S URBAN WATER MANAGEMENT PLAN AND WATER SHORTAGE CONTINGENCY PLAN AS PART OF A PUBLIC HEARING. THIS IS A PUBLIC HEARING, AND THESE ARE THE STEPS WE'LL FOLLOW TONIGHT. THE HEARING HAS BEEN OPENED, AND WE'LL PROCEED WITH A BRIEF PRESENTATION. OUR RECOMMENDATIONS TODAY. ARE TO HOLD A PUBLIC HEARING ON THE DISTRICT'S 2025 URBAN WATER MANAGEMENT AND WATER SHORTAGE CONTINGENCY PLANS AND EITHER ADOPT A RESOLUTION APPROVING THE PLANS AND AUTHORIZING SUBMITTAL TO THE DEPARTMENT OF WATER RESOURCES OR ADOPT A RESOLUTION OF THE PLANS AND DELEGATE AUTHORITY TO THE EXECUTIVE MANAGER TO APPROVE ANY REVISIONS AS A RESULT OF THIS EVENING'S HEARING AND THEN AUTHORIZED SUBMITTAL TO THE DEPARTMENT OF WATER. RESOURCES. THE CALIFORNIA DEPARTMENT OF WATER RESOURCES REQUIRES ALL URBAN WATER SUPPLIERS IN THE STATE TO HAVE AN URBAN WATER MANAGEMENT PLAN AND A WATER SHORTAGE CONTINGENCY PLAN. THESE PLANS MUST COMPLY WITH THE URBAN WATER MANAGEMENT PLANNING ACT OF THE CALIFORNIA WATER CODE. THE BOARD ADOPTED THE 2020 PLANS ON JUNE 8TH OF 2021, AND STATE LAW REQUIRES THESE PLANS TO BE UPDATED AT LEAST ONCE EVERY FIVE YEARS, INCORPORATING NEW DATA AND INFORMATION FROM THE PRECEDING FIVE YEARS. THE 2025 URBAN WATER MANAGEMENT AND WATER SHORTAGE CONTINGENCY PLANS PRESENTED HERE THIS EVENING MEET THE REQUIREMENTS OF STATE LAW AND INCLUDE AN ANALYSIS OF LONG-TERM WATER DEMAND AND SUPPLY PLANNING FOR CMWD. STATE LAW CALLS FOR THE BOARD TO ADOPT THE PLANS THROUGH PUBLIC HEARING AND TO SUBMIT BEFORE JULY 1, 2026. THE UWMP IS ORGANIZED TO INCLUDE THESE MAIN CHAPTERS. AN OVERVIEW IS PROVIDED IN THE EXECUTIVE SUMMARY. THE INTRODUCTION DEFINES THE PURPOSE AND REGULATORY REQUIREMENTS OF THE PLAN. SECTION 2 DESCRIBES HOW THE PLAN WAS PREPARED AND OUR COORDINATION WITH OTHER AGENCIES. SECTION 3 DETAILS OUR WATER STORAGE AND DISTRIBUTION SYSTEM. SECTION 4 INCLUDES AN ANALYSIS OF OUR HISTORICAL, CURRENT, AND LONG-TERM PROJECTED WATER USE BY OUR VARIOUS CUSTOMERS. SECTION 5 ADDRESSES THE SPECIFIC REGULATORY REQUIREMENTS ON PER CAPITA USE TARGETS DEVELOPED AS PART OF A PREVIOUS REGULATORY COMPLIANCE PROCESS. SECTION 6 INCLUDES A DESCRIPTION OF OUR WATER SUPPLY PORTFOLIO. [01:25:01] SECTION 7 DESCRIBES HOW WE PLAN TO CONTINUE TO RELIABLY MEET OUR CUSTOMERS' DEMANDS IN DROUGHT CONDITIONS. THE DISTRICT'S LEGAL AUTHORITIES AND ANNUAL SORRY. SECTION 8 OF THE UWMP IS OUR REQUIRED WATER SHORTAGE CONTINGENCY PLAN, AND IT DETAILS THE DISTRICT'S LEGAL AUTHORITIES, OUR ANNUAL SUPPLY AND DEMAND ASSESSMENT, AND THE DISTRICT'S RESPONSES IN EXPECTED DROUGHT PERIODS. SECTION 9 DESCRIBES OUR ONGOING DEMAND MANAGEMENT MEASURES AND THE CONSERVATION EFFORTS BY THE DISTRICT AND OUR CUSTOMERS. AND LASTLY, SECTION 10 DOCUMENTS PLAN DEVELOPMENT AND THE ADOPTION PROCESS. CMWD'S SERVICE AREA IS APPROXIMATELY 32 SQUARE MILES. CMWD PROVIDES POTABLE AND RECYCLED WATER TO APPROXIMATELY 82% OF THE CITY OF CARLSBAD WATER USERS, AND THE REMAINING CUSTOMERS ARE SERVED BY OUR NEIGHBORING VALLECITOS AND OLIVENHINE WATER DISTRICTS. OUR WATER DISTRIBUTION SYSTEM INCLUDES 457 MILES OF WATER DISTRIBUTION PIPELINE, 17 PRESSURE ZONES, 74 PRESSURE REGULATING STATIONS, 3 PUMP STATIONS, 9 POTABLE STORAGE RESERVOIRS, 97 MILES OF RECYCLED WATER DISTRIBUTION PIPELINES, 4 RECYCLED STORAGE RESERVOIRS, AND THE CARLSBAD WATER RECYCLING FACILITY. THE PRIMARY USES IN OUR SERVICE AREA ARE RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AGRICULTURE, AND IRRIGATION. THIS TABLE SUMMARIZES THE CURRENT WATER USE, AND PROJECTED WATER USE IN ACRE FEET PER YEAR, WITH THE RESIDENTIAL SECTOR MAKING UP ABOUT 50% OF OUR WATER USE. OUR RESIDENTIAL WATER DEMAND IS IMPORTANT TO CONSIDER AND HAS BEEN AN INTERESTING COMPONENT OF OUR WATER USE PLANNING DURING THIS TIME PERIOD. HISTORICALLY, POPULATION PROJECTIONS WERE DEVELOPED USING REGIONAL SAND EGG DATA AND CENSUS DATA AND FOLLOWING EXPECTED GROWTH TRENDS. BUT OVER THE PAST SEVERAL YEARS, AND CERTAINLY IN THE NEXT FIVE, THE POPULATION NUMBERS FOR CARLSBAD DO NOT APPEAR TO BE FOLLOWING THESE GRADUAL TRENDS AS CLOSELY. NOT ONLY IS THERE AN EXPANSION OF SEASONAL POPULATION VARIABILITY THROUGHOUT THE CITY'S TOURISM SECTOR, BUT WITH THE NEW STATE HOUSING LAWS FOR INCREASING AFFORDABLE HOUSING, COASTAL CITIES LIKE CARLSBAD ARE SEEING A MUCH MORE RAPID INCREASE OF REDEVELOPMENT AND DENSITY, AND THUS POPULATION NUMBERS ARE INCREASING, RESULTING IN CITY BUILD-OUT SOONER. DURING THIS UWMP PROCESS, POPULATION PROJECTIONS WERE DEVELOPED USING LOCAL PLANNING DATA IN COORDINATION WITH THE CITY OF CARLSBAD'S PLANNING DIVISION AND THE CITY'S GROWTH MANAGEMENT PLANNING. BASED ON CURRENT HOUSING AND DENSITY PROJECTIONS, THE CITY IS ANTICIPATING BUILD-OUT WITHIN THE NEXT 10 YEARS, AND AFTER 2035, IT'S EXPECTED THAT THE NUMBER OF HOUSING UNITS WILL REMAIN RELATIVELY CONSTANT THROUGH 2050. THIS, OF COURSE, WILL BE REVISITED IN THE NEXT FIVE-YEAR PLANNING CYCLE, AND IT WILL BE INTERESTING TO SEE HOW THIS PROGRESSES DURING THAT NEXT PLANNING PERIOD. THIS GRAPH SHOWS HOW CMWD'S HISTORICAL DEMANDS HAVE VARIED FROM YEAR TO YEAR, MAINLY DUE TO ANNUAL VARIATIONS IN THE WEATHER AND THE ECONOMY, WHERE WE SEE A DIP IN WATER USE. IN THE MID-2000S. THIS IS A RESULT OF THE WATER CONSERVATION ACT OF 2009 WHEN CALIFORNIA MANDATED WATER SUPPLIERS THROUGHOUT THE STATE TO REDUCE THEIR PER CAPITA POTABLE DEMANDS BY 20% BY 2020. OUR 2020 REGULATORY TARGET WAS 209 GALLONS PER CAPITA PER DAY AND WE'RE CURRENTLY ESTIMATED AT 135 GALLONS PER CAPITA PER DAY IN 2025. DUE TO CONSERVATION EFFORTS, RESIDENTS ARE TYPICALLY USING LESS WATER. YET WE DO SEE AN INCREASE IN THE TOTAL DEMAND AS A RESULT OF POPULATION GROWTH AND GROWTH IN COMMERCIAL ACTIVITY. AS JUST MENTIONED, THIS DOTTED LINE REPRESENTS THE POPULATION PROJECTIONS DEVELOPED DURING THIS PLANNING PROCESS FOR THE CMWD SERVICE AREA, CONSIDERING BOTH DEVELOPMENT AND SUBSTANTIAL TOURIST AND TEMPORARY POPULATION THROUGHOUT THE YEAR. THE GOOD NEWS IS THAT CMWD HAS AMPLE WATER SUPPLY TO MEET DEMAND THROUGH THE DEFINED PLANNING TIMEFRAME OF 2050. CMWD PURCHASES POTABLE WATER FROM THE SAN DIEGO COUNTY WATER AUTHORITY, WHICH SELLS WATER TO CMWD AND 21 OTHER RETAIL WATER AGENCIES. AS A REGIONAL WHOLESALER IN SOUTHERN CALIFORNIA, THE WATER AUTHORITY IS UNIQUELY PREPARED FOR MULTIPLE YEARS OF DROUGHT DUE TO THREE DECADES OF INVESTMENT IN SUPPLY RELIABILITY BECAUSE IT RECEIVES WATER SUPPLIES FROM THE COLORADO RIVER, THE SACRAMENTO, SAN JOAQUIN DELTA, AND THE CARLSBAD DESALINATION PLANT, AND PURCHASES WATER FROM THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA. ADDITIONALLY, CMWD HAS A RELIABLE LOCAL SUPPLY OF POTABLE WATER FROM THE CARLSBAD DESALINATION PLANT, AND VERY IMPORTANT FOR OUR OUTDOOR LANDSCAPE USE IS CMWD'S LONG-TERM INVESTMENT IN RECYCLED WATER THROUGH THE CARLSBAD WATER RECYCLING FACILITY, ITS STORAGE AND DISTRIBUTION SYSTEM. A KEY REQUIREMENT IN THE UWMP IS A FUTURE SUPPLY RELIABILITY ANALYSIS, WHICH LOOKS AT THE SUPPLY-DEMAND BALANCE IN NORMAL, SINGLE-DRY, AND MULTIPLE-DRY. YEAR RAINFALL CONDITIONS. CONSISTENT WITH THE WATER AUTHORITY'S 2025 UWMP, CMWD ESTIMATES THAT WATER DEMAND WILL INCREASE AS THE WEATHER [01:30:02] GETS HOTTER AND DRIER DURING SINGLE DRY YEAR AND MULTI DRY YEAR SCENARIOS. THE WATER AUTHORITY HAS PROJECTED ITS ABILITY TO MEET THESE INCREASED DEMANDS. RECYCLED WATER SUPPLIES AND CMWD'S LOCAL DESAL SUPPLY ARE ESTIMATED TO REMAIN STEADY IN ALL HYDROLOGIC SCENARIOS BECAUSE THEY'RE BOTH DROUGHT-PROOF SUPPLIES. AND THIS TABLE SHOWS THAT UNDER A CONSECUTIVE FIVE-YEAR DROUGHT SCENARIO, LOCAL SUPPLIES REMAIN STABLE AND THE WATER AUTHORITY SUPPLIES FULLY MEET PROJECTED DEMAND WITH NO PROJECTED SHORTAGES OR NEED FOR ADDITIONAL WATER SHORTAGE CONTINGENCY PLAN ACTIONS. WHILE CMWD IS CONFIDENT IN ITS RESOURCES TO MEET CURRENT AND FUTURE DEMANDS, AS PART OF OUR WATER SHORTAGE CONTINGENCY PLAN, CMWD HAS ADOPTED MEASURES TO ADDRESS WATER SHORTAGES SHOULD SUPPLIES BE MORE LIMITED OUTSIDE OF OUR CONTROL. IN JULY 2024, CMWD CODIFIED ALL OF ITS WATER ORDINANCES INTO THE CMWD WATER CODE. TITLE III OF THE CODE INCLUDES THE REQUIREMENTS TO PROHIBIT WATER WASTE AND ENCOURAGE WATER USE EFFICIENCY, AND TO ALIGN OUR REGULATORY FRAMEWORK WITH CHANGES AT THE REGIONAL AND STATE LEVEL FOR DROUGHT AND CONSERVATION. AS DETAILED IN THE WATER SHORTAGE CONTINGENCY PLAN, EACH LEVEL BUILDS ON THE PREVIOUS LEVEL, PLACING ADDITIONAL RESTRICTIONS ON WATER USE. THE CALIFORNIA WATER CODE REQUIRES WATER SUPPLIERS TO MAINTAIN AN UP-TO-DATE WATER SHORTAGE CONTINGENCY PLAN AND REFINE IT AS CONDITIONS CHANGE OR NEW INFORMATION BECOMES AVAILABLE. CMWD WILL REGULARLY REVIEW AND UPDATE ITS WATER SHORTAGE CONTINGENCY PLAN TO ENSURE THAT IT REMAINS ALIGNED WITH EVOLVING STATE REQUIREMENTS, REGIONAL SUPPLY CONDITIONS, AND OPERATIONAL NEEDS. THE DEMAND MANAGEMENT SECTION OF THE UWMP PROVIDES DETAILS OF CONSERVATION EFFORTS BY THE DISTRICTS AND OUR CUSTOMER. THE DISTRICT AND OUR CUSTOMERS. CMWD CUSTOMERS HAVE LONG ADOPTED A CONSERVATION MINDSET AND MANY OF THE DEMAND MANAGEMENT MEASURES ARE PART OF THEIR DAILY ACTIVITIES IN PREVENTING WATER WASTE. CMWD HAS WATER WASTE PREVENTION LANGUAGE IN OUR CODE. THE DISTRICT USES A TWO TIERED RATE STRUCTURE TO ENCOURAGE WATER USE EFFICIENCY. THE DISTRICT CONDUCTS ONGOING LEAK DETECTION AND WATER LOSS AUDITS TO IDENTIFY IMPROVEMENT NEEDS IN OUR SYSTEM. ADVANCED METERING INFRASTRUCTURE THROUGHOUT OUR SERVICE AREA PROVIDES FOR RELIABLE WATER USE TRACKING AND LEAK DETECTION AND CMWD COORDINATES MANY OUTREACH AND EDUCATION EFFORTS IN CONJUNCTION WITH THE WATER AUTHORITY THIS TIMELINE SUMMARIZES THE UWMP AND THE WATER SHORTAGE CONTINGENCY PLANNING PROCESS MILESTONES AND THE OPPORTUNITIES FOR PUBLIC INVOLVEMENT DURING THE PLAN UPDATE PROCESS INCLUDING TONIGHT'S HEARING THAT CONCLUDES MY PRESENTATION. OUR RECOMMENDATIONS AGAIN TODAY ARE TO HOLD A PUBLIC HEARING AND EITHER ADOPT A RESOLUTION APPROVING THE PLANS AND AUTHORIZING SUBMITTAL TO THE CALIFORNIA DEPARTMENT OF WATER RESOURCES OR ADOPTING A RESOLUTION AND DELEGATING AUTHORITY TO THE EXECUTIVE MANAGER TO APPROVE REVISIONS AS A RESULT OF THE EVENING HEARINGS AND AUTHORIZE SUBMITTAL TO DWR. AND WE'RE HAPPY TO ANSWER ANY QUESTIONS. QUESTIONS FROM COUNCIL? MR. SHIN. YEAH, THIS IS JUST SOMETHING I THOUGHT WOULD BE INTERESTING FOR YOU TO CLARIFY. WHEN WE HAD OUR DISCUSSION AND I WAS READING THE PACKET, I WAS KIND OF REFLECTING THE FACT THAT WE'RE KIND OF BRANDED AS BEING THIS CARLSBAD ALKALINE WATER FROM THE SPRING. AND WHEN I STARTED READING THE SECTION ABOUT THE GROUNDWATER. IT STATES THAT WE HAVEN'T DONE A STUDY ON THE GROUNDWATER, SO I ASKED THE QUESTION WHY. AND CAN YOU JUST HIGHLIGHT TO US WHY IT IS THAT WE DON'T STUDY THE GROUNDWATER AVAILABILITY? THANKS FOR THE QUESTION, COUNCIL MEMBER SHEN. SO THE CARLSBAD MUNICIPAL WATER DISTRICT DID HAVE GROUNDWATER RIGHTS. THEY WERE IN THE CITY OF OCEANSIDE, AND WE ALSO HAD A, CALL IT A HISTORIC WELL. IN THE KELLY RANCH AREA OF CARLSBAD. GROUNDWATER REQUIRES TREATMENT, AND FOR THE WELLS THAT WERE IN OCEANSIDE, THAT TREATMENT AND CONVEYANCE TO CARLSBAD WAS VERY COSTLY, SO WE DIDN'T UTILIZE THOSE RIGHTS. AS FAR AS THE KELLY RANCH WELL, THAT WELL WAS SOLD OFF WITH THE PROPERTY AND IS NO LONGER A CITY ASSET. AND THEN A RESEARCH BEYOND THAT... THERE'D BE NO NEED TO EVEN DO THAT JUST BECAUSE OF ALL THE OTHER AVAILABILITIES OF HOW WE RECEIVE WATER. THAT'S CORRECT. IT'S MUCH MORE EFFICIENT TO MAKE USE OF THE AVAILABLE INFRASTRUCTURE THROUGH THE SAN DIEGO COUNTY WATER AUTHORITY. IT WOULD BE QUITE DIRE DOWN THAT PATH. RIGHT. OKAY. THAT'S ALL. THANK YOU. ANY OTHER QUESTIONS? PIGGYBACKING ON WHAT MR. SHIN JUST ASKED, THE WELL AND OCEAN SIDE, YOU SAID PART OF THE EXPENSE IS THE CONVEYANCE. IS THERE ANY INTEREST IN OCEANSIDE PURCHASING IT, OR IS THAT STILL TOO EXPENSIVE [01:35:01] FOR THEM TO USE? WHEN I SAY IT, NOT THE WELL, THE WATER. YES, THE WATER. THE CITY CHOSE NOT TO DEVELOP THAT RESOURCE YEARS AGO BECAUSE OF THE COST OF TREATMENT AND CONVEYANCE. THE CITY OF OCEANSIDE HAS ITS OWN PURE WATER PROGRAM WHERE THEY DO HAVE INJECTION WELLS, WHICH INJECT. TERTIARY TREATED RECYCLED WATER BACK INTO THE GROUND AND THEN EXTRACT IT FOR FURTHER TREATMENT. BUT WE DO HAVE THE RIGHTS TO IT AND IT'S ALWAYS THERE IF FOR SOME REASON WE NEED IT IN THE FUTURE AND IT'S WORTH SPENDING THE MONEY. WE CONTINUE TO OWN IT AND HAVE ACCESS TO IT. IS THAT RIGHT? THOSE RIGHTS WOULD REQUIRE PETITIONING THE STATE FOR REESTABLISHMENT. FOR MANY YEARS NOW, THE STATE HAS NOT RECOGNIZED CARLSBAD RIGHTS BECAUSE WE DON'T UTILIZE THAT RESOURCES. IT'S KIND OF A USE IT OR LOSE IT? YES. OKAY. THANK YOU. THIS IS A PUBLIC HEARING. I'M OPENING THE PUBLIC TESTIMONY. DO WE HAVE ANY SPEAKERS? YES, WE HAVE ONE. MIKE BAROLO. GOOD EVENING, MR. PRESIDENT AND MEMBERS OF THE BOARD. AND STAFF OF THE CMWD. I'M MIKE BORRELLO, PETITIONER IN BORRELLO VERSUS CITY OF CARLSBAD. I'M HERE TONIGHT TO TALK ABOUT A MISSING RISK ITEM ON THE PLAN. THE 2025 UWMP CONTAINS A SERIOUS AND UNACCEPTABLE GAP. IT PROMOTES RECYCLED WATER AS A RELIABLE SUPPLY, HOWEVER, EMITS OPERATIONAL AND PUBLIC HEALTH RISKS IN THE DISTRIBUTION SYSTEM ITSELF. YOU MENTIONED CARLSBAD OPERATES 97 MILES OF PURPLE PIPE. THE PLAN SAYS NOTHING ABOUT BIOFILM FORMATION, PATHOGENIC REGROWTH INSIDE THESE LONG DISTRIBUTION MAINS, OR THE RISKS FROM PUBLIC EXPOSURE THROUGH IRRIGATION AEROSOLS IN PARKS, SCHOOLS, GOLF COURSES, AND HOAS, PEOPLE BREATHING THESE AEROSOLS THAT ARE SPRAYED INTO THE AIR. TITLE 22 FOCUSES ONLY ON THE TREATMENT AT THE PLANT. IT DOESN'T REQUIRE ROUTINE MONITORING. FOR REGROWTH OR AEROSOL RISK ONCE THE WATER LEAVES THE FACILITY. THIS IS NOT A MINOR OVERSIGHT. IT IS A SYSTEMIC FAILURE STATEWIDE, NOT JUST THIS CITY. NO CALIFORNIA CITY APPEARS TO BE SERIOUSLY ADDRESSING THESE DISTRIBUTION RISK ISSUES. AND NO LARGE-SCALE EPIDEMIOLOGICAL STUDIES EXIST COMPARING LONG-TERM HEALTH OUTCOMES IN HEAVY PURPLE PIPE COMMUNITIES. VERSUS UNEXPOSED COMMUNITIES AS CONTROLS. CITY MANAGER HAS PAID VERY WELL TO PROVIDE INDEPENDENT CRITICAL THINKING ON BEHALF OF CARLSBAD RESIDENTS, BUT WE NEED TO LOOK MORE CLOSELY AT ADDED RISKS THAT WE HAVE IN THIS PLAN. IT'S NOT IN THE PLAN THAT'S BEING SENT TO THE STATE. I'M NOT CALLING FOR AN END TO RECYCLED WATER. I'M DEMANDING TRANSPARENCY AND A GENUINE RISK ASSESSMENT. SO THE PUBLIC AND THIS BOARD CAN PROPERLY WEIGH DROUGHT RESILIENCE VERSUS PUBLIC HEALTH RISKS. IT'S WHAT I'VE ASKED FOR IN MY LAWSUIT. NO ONE WANTS TO TALK TO ME ABOUT IT. THAT'S WHY I'M IN COURT NOW. THAT'S WHY I'M IN A HEARING NEXT WEEK. SO I WELCOME FOLLOW-UP. I'VE ALWAYS WELCOMED FOLLOW-UP. THANK YOU. ANY OTHER SPEAKERS? NO. CLOSING PUBLIC TESTIMONY, COUNCIL DISCUSSION. ANYONE? MS. COSTA. OKAY. THANK YOU FOR THE PRESENTATION AND FOR THE DATA ANALYSIS THAT WENT INTO IT. WE REALLY APPRECIATE IT. OBVIOUSLY, THIS IS SOMETHING REQUIRED BY LAW TO PRESENT THIS, BUT THERE'S A LOT OF WORK THAT GOES INTO THIS. AND I SPECIFICALLY AM PROUD THAT WE HAVE A DIVERSITY OF SUPPLY AT THE WATER AUTHORITY AND THAT HERE WE HAVE OUR PROJECTIONS AND OUR RECYCLED WATER PROGRAM THAT ARE VERY CLEARLY LAID OUT. I FEEL LIKE WE ARE ONE OF THE CITIES THAT HAS THE STRONGEST WATER. RECYCLED WATER PROGRAMS. I KNOW OUR GOLF COURSES AND OUR PARKS ALL ARE USING THAT PURPLE PIPE, AND IT'S CLEARLY A BIG USER. WHEN YOU LOOK AT THE CHART THAT YOU HAVE WHERE THE PURPLE SECTION OF THE BAR CHART IS RECYCLED WATER, IT'S A PRETTY SIGNIFICANT AMOUNT. AND I THINK THAT PEOPLE DON'T SEE THE EXTRA WORK THAT GOES INTO WHAT YOU ALL DO. SO I WANT TO THANK YOU FOR THAT. WE TALK A LOT ABOUT PURE WATER, AND MR. [01:40:02] PADILLA JUST MENTIONED THAT OCEANSIDE HAS THIS PURE WATER, SAN DIEGO HAS A PURE WATER PROGRAM, AND THERE'S AN EAST COUNTY PROGRAM ALL PENDING. NONE OF THEM ARE ONLINE YET. THEY'RE ALL ON THEIR WAY. I KNOW THERE ARE OTHER COMMUNITIES THROUGHOUT THE STATE THAT ARE TRYING TO GET THIS FULL RECYCLED WATER THAT'S DRINKABLE, NOT JUST PURPLE PIPE FOR OUR PARKS AND OUR GOLF COURSES. ACTUAL DRINKABLE RECYCLED WATER FROM THEIR EXISTING SUPPLY. SO I SEE THAT AS SOMETHING THAT'S GOING TO, YOU KNOW, IT'S COMING, AND THERE'S A POTENTIAL FOR A BIT OF A SHAKEUP WHEN THAT DOES HAPPEN. BUT IT LOOKS LIKE WE'RE DOING REALLY WELL, AND YOU KNOW, AT THE WATER AUTHORITY, I KNOW YOU ALL ARE FOLLOWING IT, BUT I KNOW FROM BEING A BOARD MEMBER AT THE WATER AUTHORITY THAT THERE'S BEEN A LOT OF PROGRESS MADE IN JUST A FEW MONTHS THIS YEAR IN BEING ABLE TO SELL EXCESS WATER SUPPLY TO... AGENCIES THAT NEED TO BE DROUGHT RESILIENT LIKE WE ARE IN THIS AREA. AND ALL OF SAN DIEGO COUNTY IS VERY WELL SET WITH OUR DESAL PLANT ESPECIALLY. SO WE'RE VERY LUCKY AND FORTUNATE TO HAVE OUR DESAL PLANT HERE. SOMETIMES WHEN TOURISTS COME TO TOWN, THEY DO ASK ABOUT THE ALKALINE WATER THAT THEY SEE IN THE BOTTLES, AND THEY WONDER IF THAT'S WHAT'S IN OUR TAP. IT'S NOT. IT'S NOT THAT WELL WATER. THEY ASK IF WE'RE ONLY DRINKING DESAL. I SAY NO, AND I ALWAYS JUST SAY IT'S A BLEND. IT'S A BLEND OF THAT COLORADO RIVER AND THE NORTHERN CALIFORNIA WATER AND THE AND THE DESAL WATER ALL TOGETHER, AND IT'S GOOD-TASTING WATER. IT'S FRESH AND IT'S CLEAN, AND IT'S THAT AFFORDABLE, RELIABLE, CLEAN SUPPLY OF WATER THAT WE ARE PROMISING TO OUR RESIDENTS AND BUSINESSES ALL THE TIME. SO THANK YOU FOR ALL THAT HARD WORK AND THE DATA ANALYSIS THAT YOU PUT INTO THIS PRESENTATION. ANY OTHER COMMENTS? MS. BAPATEL. JUST BRIEFLY, I WANT TO SAY THANK YOU SO MUCH FOR ALL THE HARD WORK. IF... YOU HAVEN'T SEEN IT, THE STAFF REPORT IS 736 PAGES. SO CLEARLY THERE WAS A LOT OF WORK THAT WENT INTO IT, NOT JUST BECAUSE OF THE NUMBER OF PAGES, BUT JUST THE BACKGROUND AND THE INFORMATION THAT YOU ALL HAVE TO DO. I KNOW WE ALL HAVE HAD THE OPPORTUNITY TO GO OUT WITH YOU ALL OVER THE YEARS AND SEE THE WORK THAT YOU ALL ARE DOING, AND I HAD A CHANCE TO DO A REFRESHER A COUPLE OF WEEKS AGO, AND I HAVE TO SAY I HOPE YOU ALL KNOW HERE IN THE CITY OF CARLSBAD WE HAVE SUCH DEDICATED STAFF. STAFF AND FOLKS THAT REALLY TRULY CARE ABOUT OUR COMMUNITY AND FOLKS THAT REALLY WANT TO MAKE SURE THAT WE DO HAVE CLEAN DRINKING WATER AND WAYS TO MAKE SURE THAT YOU KNOW WE HAVE WATER SUPPLY FOR OTHER DEMANDS THAT WE HAVE IN OUR IN OUR CITY AND I THINK WE WE TAKE IT FOR GRANTED WE'RE OBVIOUSLY A CITY THAT HAS A LOT OF PRIVILEGE WITH REGARDS TO HAVING THAT CLEAN DRINKING WATER AND THERE ARE SO MANY OTHER COUNTRIES AND EVEN CITIES WITHIN THE UNITED STATES THAT DON'T HAVE THAT ACCESS SO I JUST WANT TO SAY THANK YOU. FOR ALL THAT YOU ALL ARE DOING AND TO MAKE SURE THAT IT IS ACTUALLY SOMETHING THAT'S ACCESSIBLE, EASY, AND SOMETHING THAT FOLKS DON'T EVEN HAVE TO THINK TWICE ABOUT. SO I APPRECIATE THAT. MOTION, PLEASE. MOVE ADOPTION OF BOTH RESOLUTIONS IN THIS AGENDA ITEM. SECOND. PLEASE VOTE. BOTH RESOLUTIONS, RIGHT? BECAUSE THERE'S OH, IS IT JUST ONE? OKAY, SO JUST SORRY. I WILL GO AHEAD AND MOVE ADOPTION OF THE RESOLUTION THAT I THINK IT'S THIS ITEM NUMBER THREE, RIGHT? SO ADOPTION OF THE RESOLUTION ADOPTING THE 2025 URBAN WATER MANAGEMENT PLAN AND THE WATER SHORTAGE CONTINGENCY PLAN AND DELEGATING AUTHORITY TO THE EXECUTIVE MANAGER TO APPROVE REVISIONS. TO CLARIFY, THAT OPTION WOULD ALLOW FOR REVISIONS TO BE MADE BASED ON WHAT WAS RECEIVED DURING PUBLIC COMMENT, SO I BELIEVE YOU ARE... SO YES, NEVER MIND. OPTION ONE. YES, NUMBER TWO. OPTION ONE. YES, OPTION ONE. THANK YOU. AND WE HAVE A SECOND? SECOND. PLEASE VOTE. [11. ANNUAL REPORT ON VACANCIES AND RECRUITMENT AND RETENTION EFFORTS] PASSES UNANIMOUSLY. ITEM NUMBER 11, CITY MANAGER. ITEM 11 IS THE ANNUAL REPORT ON VACANCIES AND RECRUITMENT AND RETENTION EFFORTS. FOR THAT PRESENTATION, WE HAVE OUR ASSISTANT HUMAN RESOURCES DIRECTOR, PAUL HO, AND OUR HUMAN RESOURCES MANAGER, CAROLYN DEL GRANDE. GOOD EVENING, MAYOR, MAYOR PRO TEM, COUNCIL MEMBERS. MY NAME IS PAUL HO, ASSISTANT HR DIRECTOR. TODAY WE'LL BE PROVIDING OUR ANNUAL JOB VACANCY UPDATE AS REQUIRED BY ASSEMBLY BILL 2561. WE'LL GO OVER THE LAW'S INTENT AND REQUIREMENTS AND THE STEPS THAT WE'VE TAKEN. ASSEMBLY BILL 2561 WAS SIGNED INTO LAW ON JANUARY 1, 2025. [01:45:02] WHICH REQUIRES THE CITY TO PRESENT ANNUALLY AT THE CITY COUNCIL MEETING REGARDING THE STATUS OF JOB VACANCIES AND RECRUITMENT AND RESETTLEMENT EFFORTS. AT THIS TIME, I'LL TURN IT OVER TO CAROLYN DEL GRANDE TO PRESENT ADDITIONAL INFORMATION. THANK YOU, PAUL. GOOD EVENING, MAYOR, MAYOR PRO TEM, AND COUNCIL MEMBERS. MY NAME IS CAROLYN DEL GRANDE, AND I'M A HUMAN RESOURCES MANAGER. THIS ASSEMBLY BILL ADDRESSES THE WIDESPREAD AND SIGNIFICANT CHALLENGES OF JOB VACANCIES IN LOCAL GOVERNMENT, WHICH CAN LEAD TO INCREASED... BURNOUT, REDUCED PUBLIC SERVICES, AND LOWER MORALE AMONG EXISTING EMPLOYEES. AND ON THE FLIP SIDE, MAINTAINING APPROPRIATE STAFFING LEVELS IMPROVES MORALE AND RETENTION. ASSEMBLY BILL 2561 REQUIRES US TO PROVIDE ANNUAL UPDATES TO CITY COUNCIL ON EMPLOYEE VACANCIES, RECRUITMENT, AND RETENTION EFFORTS, AND ANY OBSTACLES IN OUR HIRING PROCESS. IT REQUIRES US TO PROVIDE ADDITIONAL INFORMATION REGARDING VACANCIES IF AN ASSOCIATION'S VACANCY RATE IS 20 PERCENT OR MORE. AND IT REQUIRES US TO NOTIFY ASSOCIATIONS FOR OPPORTUNITIES TO MAKE PRESENTATIONS AT CITY COUNCIL MEETINGS. THIS SLIDE OUTLINES OUR CURRENT VACANCY RATES BOTH CITYWIDE AND BY ASSOCIATION. ON THE FAR LEFT YOU'LL SEE OUR CITYWIDE VACANCY RATE IS CURRENTLY 5.1 PERCENT AND JUST TO THE RIGHT OF THAT OUR CARLSBAD CITY EMPLOYEES ASSOCIATION ALSO KNOWN AS CCEA, HAS A 5.7% VACANCY RATE. OUR CARLSBAD POLICE OFFICERS ASSOCIATION, OR CPOA, HAS A 4.3% VACANCY RATE. OUR CARLSBAD POLICE MANAGEMENT ASSOCIATION, OR CPMA, HAS A 0% VACANCY RATE. AND OUR CARLSBAD FIRE ASSOCIATION, OR CFA, HAS A 4.2% VACANCY RATE. WE ANTICIPATE THE CFA VACANCY RATE WILL DROP TO ZERO IN THE FIRST WEEK OF JULY AS WE'RE IN THE PROCESS OF FILLING YOU ALL OF OUR FIREFIGHTER AND PARAMEDIC FIREFIGHTER VACANCIES. AND KEEP IN MIND THAT THESE VACANCY RATES ARE FLUID AND DO FLUCTUATE THROUGHOUT THE YEAR. RELATED TO RECRUITMENT AND RETENTION EFFORTS, WE USE ONLINE JOB BOARDS, PLATFORMS, AND SOCIAL MEDIA TO ATTRACT WIDER CANDIDATE POOLS. WE REGULARLY ATTEND HIGH SCHOOL, COLLEGE, AND MILITARY CAREER FAIRS AND COMMUNITY EVENTS. IN FACT, ON THURSDAY, WE'LL BE AT CAMP PENDLETON ATTENDING THEIR MILITARY SPOUSE'S CAREER FAIR. WE REVIEW SALARY STRUCTURES TO REMAIN MARKET COMPETITIVE. WE MAINTAIN A COMPETITIVE BENEFITS PROGRAM. WE DEVELOP TALENT WITH TRAINING AND DEVELOPMENT PROGRAMS. WE OFFER CITY INTERNSHIPS. AND WE OFFER INTERNAL PROMOTIONS, BOTH PART-TIME AND FULL-TIME. AND NOW I'LL TURN IT BACK OVER TO PAUL. THANK YOU. SO OUR CURRENT AND NEXT STEPS, WE'LL CONTINUE TO MONITOR VACANCY RATES ON A MONTHLY BASIS FOR EACH EMPLOYEE ASSOCIATION. WE'LL NOTIFY. THE INDIVIDUAL EMPLOYEE ASSOCIATIONS, IF THEY'RE RESPECTIVE, THEY CAN SEE RATES REACH 20% OR HIGHER. AND WE'LL CONTINUE TO MAKE THESE ANNUAL PRESENTATIONS AT CITY COUNCIL MEETINGS TO COMPLY WITH AB2561. AND AS A REMINDER, THIS IS A PUBLIC HEARING. AND WE'RE HAPPY TO TAKE ANY QUESTIONS THAT YOU MIGHT HAVE. ANY QUESTIONS FROM COUNCIL? OKAY, THIS IS A PUBLIC HEARING, SOME OPENING PUBLIC TESTIMONY. DO WE HAVE ANY SPEAKERS? THERE ARE NO SPEAKERS. CLOSING PUBLIC TESTIMONY. COUNCIL DISCUSSION. MR. SHIN. JUST REALLY QUICKLY, I DON'T GET TO SEE YOU GUYS OFTEN, SO WHAT I DO WANT TO SAY IS I STILL HAVE, LIKE, PTSD FROM OWNING MY RESTAURANT, AND I WENT THROUGH OVER 350 EMPLOYEES IN UNDER FIVE YEARS, AND I REMEMBER FEELING LIKE A HUMAN RESOURCE DIRECTOR, AND IT WAS THE LAST THING I WANTED TO DO. I REALIZE THE AMOUNT OF PRESSURE IT TAKES TO BE AN AMAZING. GROUP OF HUMAN RESOURCE, BEING A PART OF YOUR HUMAN RESOURCE TEAM, BECAUSE YOU KIND OF SET THE CULTURE IMMEDIATELY. AND THEN WHEN PEOPLE PHASE OUT, YOU ALSO HAVE TO DETERMINE HOW TO DO IT APPROPRIATELY. AND IT COMES WITH A LOT OF LIABILITY IF YOU DO IT THE WRONG WAY. SO I JUST WANTED TO TOTALLY COMMEND YOU IN FRONT OF THE PUBLIC RIGHT NOW ABOUT THE WORK THAT YOU DO, AND THAT YOU ARE A COMPONENT OF WHY OUR EMPLOYMENT IS AS LOW AS IT IS. SO THANK YOU. ANY OTHER COMMENTS? MR. COSTA. THANK YOU. I KNOW THAT THIS REPORT REALLY WAS ABOUT THE FACTS AND STATISTICS AND THAT'S REQUIRED BY STATE LAW. BUT I ALSO WANT TO THANK YOU AND YOUR ENTIRE DEPARTMENT FOR WORKING ON NURTURING OUR CULTURE FOR OUR EMPLOYEES HERE, BECAUSE I DO BELIEVE CARLSBAD IS THE BEST CITY TO WORK IN, NOT JUST IN SAN DIEGO COUNTY, BUT I WOULD VENTURE TO SAY IN THE STATE AND PROBABLY BEYOND. CARLSBAD IS SUCH A WONDERFUL WORK ENVIRONMENT. THE CITY AND THE TEAM AND THE [01:50:01] WAY THAT PEOPLE FEEL. IT'S REALLY AN EXTENSION OF HOW IT FEELS TO BE A RESIDENT OR A BUSINESS OWNER, A COMMUNITY MEMBER, JUST SO MUCH LOVE FOR WHAT WE DO AND REALLY JUST BEING PART OF THE COMMUNITY. SO THANK YOU AND TO ALL OF THE SUPERVISORS AND MANAGERS AND COLLEAGUES WHO WORK ON THAT WITH THEIR TEAMS, JUST CREATING THAT SENSE. THAT WE ARE ALL WORKING TOGETHER TO SERVE THIS COMMUNITY AND DOING GOOD WORK, HAVING HIGH-QUALITY, EXCELLENT OUTCOMES. SO THANK YOU FOR EVERYTHING THAT YOU DO. THIS REALLY IS A WONDERFUL CITY AND A WONDERFUL PLACE TO WORK, AND I KNOW THERE'S INTENTION BEHIND THAT. IT DOESN'T JUST HAPPEN. SO THANK YOU. MS. BOB PATEL. YES, THANK YOU. I JUST WANT TO SAY I... TRULY APPRECIATE THE UPDATE. I KNOW IT'S REQUIRED, BUT APPRECIATE IT BECAUSE I THINK IT REALLY SHOWS HOW WE SET OURSELVES APART. IN TERMS OF WHAT WE HEAR FROM PUBLIC SERVICE, I MEAN, WE'VE BEEN HEARING IT'S BEEN HARDER TO GET FOLKS INTO WANTING TO SERVE IN THE PUBLIC. AND SO I JUST WANT TO SAY THIS NUMBER AND THIS DATA SHOW THAT THE WORK THAT YOU ALL ARE DOING IS CLEARLY WORKING IN TERMS OF MAKING SURE YOU HEARD IT, THE CULTURE. AND JUST, OF COURSE, JUST IN GENERAL. THAT THIS ORGANIZATION IS ONE THAT PEOPLE WANT TO COME TO WORK AT. AND I THINK THAT'S SOMETHING THAT, AGAIN, IS EXEMPLARY OF THE CITY OF CARLSBAD, SO JUST REALLY EXCITING IN THAT PARTICULAR REGARD. AND ONE OTHER SHOUT-OUT I WANT TO MAKE IS AROUND THE INTERNSHIP PROGRAM THAT WE REALLY, I THINK WE END UP SEEING SOME FOLKS THAT HOPEFULLY END UP ULTIMATELY COMING HERE AND WORKING FOR US. AND IT'S JUST BUILDING THAT TALENT PIPELINE, WHICH I THINK IS SO CRITICAL. WE ALWAYS HEAR ABOUT... WHERE IS THAT TALENT PIPELINE? HOW ARE WE MAKING SURE THAT AS FOLKS ARE PHASING OUT THAT WE HAVE THAT NEXT GENERATION OF FOLKS WANTING TO COME IN AND SERVE? SO I'M SO GLAD THAT WE CONTINUE THAT PROGRAM. THANK YOU. EVEN THOUGH I WAS AN EMPLOYEE IN THE CITY FOR MANY YEARS, IT WASN'T UNTIL I WAS ON THE COUNCIL FOR A COUPLE YEARS BEFORE I REALIZED WHAT IT TAKES TO MANAGE AN ORGANIZATION WITH ALMOST 800 EMPLOYEES. SO NOW I'M RECOGNIZING THE EFFORTS YOU GUYS MAKE, AND THANK YOU [12. ECONOMIC AND FINANCIAL UPDATE FOR THE THIRD QUARTER OF FISCAL YEAR 2025-26] FOR WHAT YOU DO. DON'T NEED A MOTION FOR THIS ONE. THIS IS JUST A PRESENTATION. THANK YOU. ITEM 12, CITY MANAGER. ITEM NUMBER 12 IS THE ECONOMIC AND FINANCIAL UPDATE FOR THE THIRD QUARTER OF FISCAL YEAR 2025-2026. THE PRESENTATION WILL BE GIVEN BY OUR FINANCE DIRECTOR, ZACH KORACH, OUR ECONOMIC DEVELOPMENT DIRECTOR, TESS SANGSTER, AND OUR SENIOR PROGRAM MANAGER, RACHEL MALTZ. GOOD EVENING, MAYOR AND COUNCILMEMBERS. I AM TESS SANGSTER, ECONOMIC DEVELOPMENT DIRECTOR. TODAY'S PRESENTATION WILL PROVIDE AN ECONOMIC AND FINANCIAL UPDATE FOR FISCAL YEAR 25-26, QUARTER THREE FOR THE MONTHS OF JANUARY, FEBRUARY, AND MARCH. RACHEL MALTZ, OUR SENIOR PROGRAM MANAGER, WILL KICK US OFF TO DISCUSS CARLSBAD'S ECONOMIC LANDSCAPE. THANK YOU, TESS. GOOD EVENING, MAYOR AND COUNCILMEMBERS. RACHEL MALTZ, SENIOR PROGRAM MANAGER AND THE CITY'S SMALL BUSINESS LIAISON. TONIGHT WE'RE GOING TO HAVE AN OVERVIEW OF CARLSBAD'S ECONOMY. SO CARLSBAD'S GDP REMAINS AT $18.6 BILLION. WE REMAIN THE SECOND LARGEST ECONOMY IN THE COUNTY, BEHIND THE CITY OF SAN DIEGO. IN CALIFORNIA, THE ECONOMIC OUTLOOK CONTINUES TO REFLECT A TWO-SPEED DYNAMIC, HIGH-VALUE SECTORS SUCH AS TECHNOLOGY, LIFE SCIENCES, AND ADVANCED MANUFACTURING. REMAIN RELATIVELY STRONG WHILE MORE COST-SENSITIVE INDUSTRIES SUCH AS CONSTRUCTION, RETAIL, AND HOSPITALITY FACE ONGOING CHALLENGES TIED TO LABOR COSTS, FINANCIAL CONDITIONS, AND SHIFTING DEMAND PATTERNS FOR CONSUMER SPENDING. AGAINST THIS BACKDROP, CARLSBAD BUSINESSES CONTINUE TO DEMONSTRATE RESILIENCE. KEY INDUSTRY CLUSTERS INCLUDING LIFE SCIENCES, TECHNOLOGY, AND SPORTS AND ACTIVE LIFESTYLES REMAIN COMPETITIVE AND ADAPTIVE EVEN AS COMPANIES NAVIGATE ELEVATED COSTS, WORKFORCE CONSTRAINTS, AND GLOBAL UNCERTAINTY. THE COMBINATION OF STABLE MACROECONOMIC FOUNDATIONS, EASING LOCAL COST PRESSURES SUCH AS RENT AND CONTINUED INNOVATION, POSITION CARLSBAD TO WEATHER ONGOING UNCERTAINTY WHILE IDENTIFYING OPPORTUNITIES FOR STRATEGIC GROWTH. ECONOMIC INDICATORS ARE GIVING MIXED... THE US CHAMBER IS TRACKING SMALL BUSINESS SENTIMENT TO BE AT AN ALL-TIME HIGH. HOWEVER, BUSINESSES LOCALLY AND NATIONALLY CONTINUE TO CITE RISING COSTS AND TARIFFS AS A PRIMARY CONCERN FOR ONGOING OPERATIONS. MORE RECENTLY, LABOR MARKET CONDITIONS HAVE SHOWN IMPROVEMENT, WITH THE UNEMPLOYMENT RATE TRENDING DOWNWARD AND NOW STANDING AT APPROXIMATELY 4%. WHILE SOME LAYOFFS HAVE CONTINUED ACROSS SELECT SECTORS, OVERALL JOB GROWTH HAS STABILIZED IN THE LABOR MARKET COMPARED TO EARLIER PROJECTIONS. COMPLICATING THE BROADER ECONOMIC PICTURE INTERMITTENT DISRUPTIONS IN FEDERAL DATA REPORTING DUE TO THE GOVERNMENT SHUTDOWN BACK IN 2025 HAVE LIMITED TIMELINESS AND COMPLETENESS OF KEY INDICATORS SUCH AS INFLATION AND EMPLOYMENT MEASURES. GEOPOLITICAL TENSIONS, PARTICULARLY ONGOING DISRUPTIONS [01:55:01] IN THE GLOBAL ENERGY MARKETS, ARE CONTINUING TO INFLUENCE INFLATION DYNAMICS WITH THE CONSUMER PRICE INDEX SHOWING RENEWED UPWARD PRESSURE AS ENERGY AND GOOD PRICES REMAIN TO SUPPLY SHOCKS AND UNCERTAINTY IN KEY TRADE ROUTES. AS THE END OF MARCH REPORTING PERIOD, INFLATION IN BOTH SAN DIEGO AND THE WESTERN REGION HAD EASED CLOSE TO ABOUT 3% FOR OVERALL PRICES, INDICATING THAT PRICES INCREASED OR SLOWING AND BECOMING MORE CONSISTENT ACROSS REGIONS. THIS POINTS TO A BROADER STABILIZATION OF INFLATION, EVEN WITH PRICES REMAIN HIGHER IN PRE-2022 LEVELS. HOWEVER, MORE RECENT DATA SHOWS THAT CONSUMER PRICES ROSE TO 3.8% ANNUALLY IN APRIL AND THE HIGHEST LEVEL SINCE MAY 2023. MANY ECONOMISTS CURRENTLY ANTICIPATE CONTINUED UPWARD PRESSURE ON THE CONSUMER PRICE INDEX, PARTICULARLY WITHIN THE ENERGY SECTOR. STAFF WILL CONTINUE TO MONITOR THESE DEVELOPMENTS AND EVALUATE THEIR IMPACTS ON CONSUMER SPENDING IN THE NEXT INFLATION REPORT. JOB POSTINGS FOR THE QUARTER TOTALED AROUND 5,600, AN INCREASE FROM THE PREVIOUS QUARTER AND SLIGHTLY UP FROM THE SAME PERIOD LAST YEAR. APPROXIMATELY 1,300 CARLSBAD EMPLOYERS POSTED OPEN POSITIONS. NATIONALLY, JOB OPENINGS ARE AROUND 6.9 MILLION IN MARCH 2026, AND A YEAR AGO THERE WERE APPROXIMATELY 7.2 MILLION NATIONAL JOB OPENINGS IN THE UNITED STATES. ADP, THE WORLD'S LARGEST PAYROLL COMPANY, HAS TRACKED THE FLATTENING OF WAGES NATIONALLY, INDICATING THAT SHIFTS IN LABOR SUPPLY AND DEMAND ARE COMING INTO BALANCE. IN CARLSBAD, JOB POSTINGS HAVE INCREASED 1.8%, REFLECTING A MODEST UPTICK IN EMPLOYER HIRING DEMAND AND CONTINUED LABOR MARKET STABILITY, ALONG WITH AVERAGE POSTED JOBS. TOTALING AROUND $59,000 ANNUALLY. UNEMPLOYMENT RATE IN CARLSBAD SHOWS THE CITY REMAINS NEAR FULL EMPLOYMENT WITH MODEST SOFTENING IS EVIDENT IN COOLING NATIONAL LABOR TRENDS. CARLSBAD UNEMPLOYMENT RATE DECREASED DURING THE THIRD QUARTER, AVERAGING AROUND 4%, REFLECTING SLOWER HIRING ACROSS SEVERAL INDUSTRIES. CARLSBAD HAS HISTORICALLY FARED BETTER THAN THE STATE IN REGIONAL AVERAGES, AND THERE HAVE BEEN NO INDICATORS THAT WOULD SUGGEST A DRAMATIC CHANGE IN RECENT MONTHS. HOUSING VALUES CONTINUED TO RISE DURING THE THIRD QUARTER. ZILLOW'S HOME PRICE INDEX FOR CARLSBAD, WHICH IS A SEASONALLY ADJUSTED MONTHLY MEASURE OF TYPICAL HOME VALUES, RECORDED A MEDIAN PRICE OF $1.37 MILLION FOR QUARTER END, REFLECTING ALMOST A 0.92% INCREASE FROM THE PREVIOUS QUARTER AND ALMOST A 7.62% GAIN YEAR OVER YEAR.VALUES PEAKED NEARLY AROUND $1.4 MILLION IN JANUARY BEFORE MODERATELY SLIGHTLY DECREASING TO $1.37 MILLION BY MARCH. AFTER SEVERAL YEARS OF SUSTAINED APPRECIATION, HOME VALUES APPEAR TO BE STABILIZING, MORTGAGE RATES REMAIN ELEVATED THROUGH THE END OF THE YEAR, AND HIGHER BORROWING COSTS CONTINUE TO CONSTRAIN AFFORDABILITY AND LIMIT TRANSACTION ACTIVITY. WHILE MODERATING HOME VALUES MAY HELP REDUCE FUTURE PRICE VOLATILITY, HOUSING AFFORDABILITY REMAINS A STRUCTURAL CHALLENGE IN ATTRACTING AND RETAINING CARLSBAD'S WORKFORCE. AT THE SAME TIME, RECENT DECLINES IN RESIDENTIAL RENTAL RATES MAY OFFER SOME RELIEF MOVING FORWARD, AND NOW TESTS WILL GO INTO CARLSBAD'S DEVELOPMENT IN BUSINESS AND TOURISM ACTIVITY. THANKS, RACHEL. SO THERE WAS A TOTAL OF 2,600 BUSINESS LICENSES ISSUED LAST QUARTER, WHICH REPRESENTS A MODEST 6.3% DECREASE YEAR OVER YEAR COMPARED TO THE PRIOR YEAR. AND THE TOTAL NUMBER OF CARLSBAD BUSINESS LICENSES IS 09,705, AND IT'S ESTIMATED THAT THERE'S APPROXIMATELY 6,600 BRICK AND MORTAR BUSINESSES LOCATED IN CARLSBAD. THE COMMERCIAL REAL ESTATE MARKET IN CARLSBAD REMAINS STABLE, BUT CONTINUED TO NORMALIZE DURING THE THIRD QUARTER. INDUSTRIAL VACANCY INCREASED TO 10.55%, WHICH IS UP 1.5 PERCENTAGE POINTS FROM THE PRIOR QUARTER. AND OFFICE VACANCY INCREASED TO 14.83% AND RETAIL VACANCY DECREASED TO 4.72%. WHILE VACANCY HAS INCREASED ONLY ACROSS THE OFFICE AND INDUSTRIAL SECTORS, CARLSBAD CONTINUES TO PERFORM COMPARABLY OR SLIGHTLY BETTER THAN THE BROADER SAN DIEGO REGION, WHERE HIGHER NET ABSORPTION HAS LED TO INCREASING TENANT EXPANSION. FOR HOTEL OCCUPANCY IN CARLSBAD, THIS INCREASED INTO THE FIRST QUARTER FOR THE START OF THE YEAR, WITH JANUARY AT 63.4%. FEBRUARY AT 73.1% AND MARCH AT 78.9%. WHILE CARLSBAD CONTINUES TO PERFORM WELL AS A DESTINATION MARKET, OCCUPANCY IS BECOMING MORE SENSITIVE TO SHIFTS IN TRAVELER SENTIMENT AND BROADER ECONOMIC UNCERTAINTY DUE TO CONSUMER PRICING. COMPARED TO LAST YEAR'S QUARTER END, MARCH OUTPERFORMED BY ALMOST SIX PERCENTAGE POINTS COMPARED TO 2025 OCCUPANCY. CARLSBAD'S AVERAGE DAILY ROOM RATE, OR ADR, INCREASED DURING THE FIRST QUARTER COMPARED TO 2025 LEVELS. JANUARY ADR MEASURED $184.67, FOLLOWED BY $199 IN FEBRUARY AND $228 IN MARCH, REFLECTING TYPICAL SEASONAL INCREASING [02:00:01] AFTER THE YEAR END OF 2025, BUT MARCH ADR DID INCREASE APPROXIMATELY 4.6% YEAR-OVER-YEAR. WHILE OCCUPANCY IMPROVED YEAR-OVER-YEAR IN THE LAST THREE MONTHS, HOTEL OPERATORS APPEAR TO HAVE ADJUSTED PRICING TO SUSTAIN DEMAND HEADING INTO THE SUMMER MONTHS. SO SOME KEY TAKEAWAYS, CARLSBAD ENTERED THE FIRST QUARTER OF 2026 IN A POSITION OF CONTINUED ECONOMIC STABILITY AND ONGOING NATIONAL AND GLOBAL UNCERTAINTY. WHILE OVERALL GROWTH REMAINS POSITIVE, MOMENTUM HAS MODERATED AS BUSINESSES AND HOUSEHOLDS ADJUST TO HIGHER BORROWING COSTS, PERSISTENT INFLATIONARY PRESSURES, AND EVOLVING TRADE AND SUPPLY CHAIN CONDITIONS. LOCALLY, HIRING ACTIVITY SHOWED EARLY SIGNS OF IMPROVEMENT AND JOB POSTINGS INCREASED QUARTER OVER QUARTER, EVEN AS THE BROADER LABOR MARKET CONTINUES TO NORMALIZE. COMMERCIAL REAL ESTATE CONDITIONS REMAIN MIXED, WITH VACANCY RATES STABILIZING ACROSS MOST ASSET CLASSES AND THE NET ABSORPTION MEASURE OF INCREASED COMMERCIAL SPACE REMAINING POSITIVE, PARTICULARLY IN THE INDUSTRIAL SECTOR. HOUSING VALUES CONTINUE TO RISE MODESTLY, THOUGH AFFORDABILITY CONSTRAINTS AND ELEVATED INTEREST RATES ARE TEMPERING TRANSACTION ACTIVITY AND SIGNALING A BROADER LEVELING TREND. AT THE SAME TIME, KEY INDUSTRY CLUSTERS, INCLUDING LIFE SCIENCES, TECHNOLOGY, CLEAN TECHNOLOGY, SPORTS AND ACTIVE LIFESTYLES, AND HOSPITALITY CONTINUE TO PROVIDE STRUCTURAL STRENGTH AND SUPPORT REGIONAL COMPETITIVENESS. DESPITE SECTOR-SPECIFIC VARIATIONS AND COST PRESSURES, CARLSBAD'S DIVERSIFIED ECONOMIC BASE, RELATIVELY LOW UNEMPLOYMENT, AND SUSTAINED BUSINESS ACTIVITY POSITION THE CITY TO REMAIN RESILIENT AS MACROECONOMIC CONDITIONS CONTINUE TO EVOLVE. AND NOW I WILL TURN IT OVER TO ZACH KORACH, FINANCE DIRECTOR. THANK YOU, MS. SINGSTER. SO NOW WE WILL BE JUMPING INTO THE FINANCIAL PORTION OF THE PRESENTATION. AND WHAT WE ARE LOOKING AT HERE ARE THE GENERAL FUND REVENUES FISCAL YEAR TO DATE, SO REPRESENTING THE FIRST NINE MONTHS OF FISCAL YEAR 25-26, BUT ALSO A COMPARATIVE VIEW IN EACH OF THESE COLUMNS. SO THE FIRST COLUMN IN ORANGE REPRESENTS THE FIRST NINE MONTHS OF ACTUAL REVENUES RECEIVED LAST YEAR. THE SECOND GREEN COLUMN REPRESENTS... WHAT WE ANTICIPATED BASED ON BUDGET ESTIMATES IN THE CURRENT YEAR IN THE THIRD AND FINAL BLUE COLUMN REPRESENTS WHAT WAS ACTUALLY RECEIVED THROUGH THE FIRST NINE MONTHS. AS WE CAN SEE ACROSS THE MAJORITY OF CATEGORIES, FISCAL YEAR 26 ACTUAL PERFORMANCE EXCEEDED THE PRIOR YEAR WITH THE EXCEPTION OF SALES TAX REVENUES, WHICH WE WILL TALK ABOUT IN THE. SLIDE. SO IN TOTAL, GENERAL FUND REVENUES DECREASED YEAR TO DATE COMPARED TO THE PRIOR YEAR BY JUST 0.3%. BUT BY LOOKING AT EACH OF THE REVENUE CATEGORY OR REVENUE LINE ITEMS, WE ARE OBSERVING SIGNIFICANT FLUCTUATION. AND I'LL EXPLAIN A FEW OF THOSE AS WE GO THROUGH. PROPERTY TAX. REPRESENTING APPROXIMATELY 40% OF TOTAL GENERAL FUND REVENUES ON AN ANNUAL BASIS WAS UP 3% OR 1.7 MILLION DOLLARS OVER THE PRIOR YEAR THE MAJORITY OF WHICH IS DRIVEN BY ASSESSED VALUATION PROPERTY INCREASES UPWARDS OF 5% YEAR-OVER-YEAR SALES TAX HOWEVER WAS DOWN BY 4.1 MILLION DOLLARS OR 9% WHEN COMPARED TO THE PREVIOUS YEAR THE LARGEST ECONOMIC SEGMENTS IN THE CITY OUR AUTO DEALERS, CONSUMER GOODS AND RESTAURANTS TOGETHER, THEY GENERATE APPROXIMATELY 80% OF THE CITY'S ANNUAL SALES TAX REVENUES. FOR SALES OCCURRING IN THE FOURTH CALENDAR QUARTER OF 2025, WHICH IS THE MOST RECENT DATA AVAILABLE, CARLSBAD'S CASH BASIS SALES WERE DOWN LESS THAN 1% WHEN COMPARED TO THE PREVIOUS YEAR. WE OBSERVED FLUCTUATIONS ACROSS MULTIPLE INDUSTRY GROUPS, NAMELY A 14% DECLINE IN AUTOS AND TRANSPORTATION, AS WELL AS AN 8% DECLINE IN GENERAL CONSUMER GOODS. MOST OF THIS WAS DRIVEN BY RELATIVELY LOWER CONSUMER DEMAND AND CONFIDENCE. THESE DECLINES WERE OFFSET, HOWEVER, ON A POSITIVE NOTE BY 19% GROWTH IN BUSINESS AND INDUSTRY SECTOR, OR B2B, AND DUE TO STRONG PERFORMANCE IN THE MEDICAL BIOTECH CLUSTER. RESTAURANTS AND HOTELS ALSO EXPERIENCED AN INCREASE OF 4% YEAR OVER YEAR DUE TO THE ADDITION OF A COUPLE LOCAL RESTAURANTS IN THE CARLSBAD VILLAGE COMPARED TO THE... REPORTING PERIOD IN THE PREVIOUS YEAR. ALTHOUGH IN TOTAL FOR THE YEAR WE ARE DOWN 9%, THIS QUARTER'S PERFORMANCE DOES HAVE SOME POSITIVES TO GLEAN ON. HOWEVER, AS WE MOVE FORWARD AND AS WE WILL BE PRESENTING THE PRELIMINARY BUDGET FOR THE UPCOMING FISCAL YEAR, WE ARE TAKING DUE NOTE OF THE CURRENT MARKET VOLATILITY AND THE GEOPOLITICAL TENSIONS THAT HAVE BEEN EXPERIENCED NOT ONLY THROUGH JANUARY AND MARCH, BUT [02:05:01] ALSO THOSE CONDITIONS THAT WE'RE STILL EXPERIENCING TODAY, AND WE ARE MONITORING OUR SALES TAX DATA VERY CLOSELY AND ENSURING THAT APPROPRIATE BUT CONSERVATIVE ESTIMATES ARE APPLIED ON A GO-FORWARD BASIS. FOR TRANSIENT OCCUPANCY TAX, MS. SANGSTER TALKED ABOUT THE OCCUPANCY RATES INCREASING OVER THE PREVIOUS PERIOD, REPORTING PERIOD, THAT IS. IN TOTAL, FOR THE FIRST NINE MONTHS, WE ARE DOWN APPROXIMATELY 1%. BUT AGAIN, WHEN WE'RE JUST LOOKING AT JANUARY THROUGH MARCH, THERE WAS A REBOUND OR A BOUNCE BACK WITH SOME STRONG PERFORMANCE, AGAIN, DRIVEN BY AN INCREASE IN OCCUPANCY LEVELS. THE OTHER REVENUE CATEGORY I WANTED TO HIGHLIGHT WAS INCOME FROM INVESTMENTS AND PROPERTY, UP 23% OR $1.5 MILLION. THIS IS THE INCOME THAT IS GENERATED. FROM TWO PRIMARY SOURCES, ONE, THE GENERAL INVESTMENT PORTFOLIO, WHICH IS MANAGED AND OVERSEEN BY THE CITY TREASURER, AS WELL AS THE INCOME THAT IS GENERATED FROM THE CITY'S SECTION 115 PENSION TRUST. WHILE WE HAVE SEEN VOLATILITY ACROSS SOME OF THE REVENUE CATEGORIES, PARTICULARLY SALES TAX, THERE WERE REVENUE CATEGORIES THAT DID EXPERIENCE STRONG PERFORMANCE TO HELP MITIGATE SOME OF THE YEAR-OVER-YEAR DECLINE. LOOKING AT THE OTHER SIDE OF THE LEDGER FOR THE GENERAL FUND BUDGET, WE ARE KEEPING PACE RELATIVE TO THE FISCAL YEAR 26 BUDGET AS WELL AS SPEND RATES IN PREVIOUS PERIODS THROUGH THE FIRST NINE MONTHS WITH APPROXIMATELY 28% REMAINING OVER THE LAST THREE MONTHS THAT REMAIN FOR THE CURRENT FISCAL YEAR. HERE WE CAN SEE THE CURRENT FISCAL YEAR BUDGET, THE ACTUAL SPEND FOR THE FIRST THREE QUARTERS FROM THE PREVIOUS YEAR. AND THE FIRST THREE QUARTERS OF SPEND IN THE CURRENT FISCAL YEAR. TYPICALLY, WHAT WE SEE, WHETHER IT'S THE FIRST QUARTER OF THE MID-YEAR UPDATE OR THE THIRD QUARTER REPORT, WE WILL SEE PERSONNEL INCREASES OVER THE PREVIOUS YEAR. MUCH OF THAT IS DRIVEN BY LABOR AGREEMENTS AUTHORIZED BY THE CITY COUNCIL, AS WELL AS SOME INCREASES THAT ARE OUTSIDE OF THE CITY'S CONTROL, SUCH AS RETIREMENT COSTS, HEALTH COSTS INCREASES. MAINTENANCE AND OPERATIONS EXPERIENCED A SLIGHT INCREASE. MAINLY DRIVEN BY ONE-TIME SUPPLEMENTAL BUDGET REQUESTS APPROVED AS PART OF THE FISCAL YEAR 26 BUDGET MOST NOTABLY AUTHORIZATION FOR THE 2.6 MILLION DOLLAR AERIAL LADDER TRUCK FOR THE FIRE DEPARTMENT TRANSFERS OUT FLUCTUATE FROM ONE YEAR TO THE NEXT OFTEN DRIVEN BY THE LEVEL OF NEED FOR FUTURE CAPITAL PROJECT AND OTHER FUNDING SOURCE NEEDS HERE WE'RE LOOKING AT MOST OF THAT SAME INFORMATION, BUT PRESENTED NUMERICALLY BY EXPENDITURE CATEGORY. AND WE'RE LOOKING AT THE AMOUNT OF BUDGET THAT HAS BEEN SPENT TO DATE THROUGH THE FIRST THREE QUARTERS. AND IN TOTAL, WHEN WE EXCLUDE ANY CURRENT AND ACTIVE ENCUMBRANCES, WE HAVE SPENT 67% OF THE TOTAL AUTHORIZED BUDGET. LOOKING AT A FEW OF THE CITY'S ENTERPRISE FUNDS, WATER AND WASTEWATER, WE'RE SEEING WATER REVENUES UP 7% AND EXPENDITURES ARE UP 9%. THIS IS DRIVEN BY WATER RATE INCREASES THAT WENT INTO EFFECT AT THE BEGINNING OF THE FISCAL YEAR. WASTEWATER REVENUES ARE UP 12% AND EXPENSES ARE UP 4%. AGAIN, THE REVENUE INCREASE IS ALSO DRIVEN BY RATE INCREASES THAT WENT INTO EFFECT DURING THE FISCAL YEAR. THE GOLF COURSE CONTINUES TO PERFORM AT A VERY HIGH LEVEL. REVENUES ARE UP 11%, MUCH OF WHICH IS BOLSTERED BY SLIGHT INCREASES IN GOLF RATES, BUT PRIMARILY THEY'RE FOOD AND BEVERAGE AND PRACTICE FACILITY OPERATIONS. EXPENSES ARE UP MAINLY DUE TO THEY ARE IN LINE WITH REVENUE GROWTH, BUT ALSO INCORPORATING ANY CAPITAL SPEND ACROSS THE FACILITY. AS FOR NEXT STEPS, WE WILL CONTINUE TO MONITOR REVENUES AND EXPENDITURES. AND OF COURSE PUBLISH THE ECONOMIC AND FINANCIAL STATUS REPORTS ON THE CITY'S WEBSITE. AND WE WILL NEXT BE BEFORE THE CITY COUNCIL NEXT WEEK ON MAY 19TH TO PRESENT THE UPCOMING FISCAL YEAR 26-27 PRELIMINARY BUDGET. THAT CONCLUDES OUR PRESENTATION. WE'D BE HAPPY TO TAKE ANY QUESTIONS. QUESTIONS FROM COUNCIL. MR. SHEN. YEAH, JUST A QUICK QUESTION. SO YOU SAID THAT TRANSFERRED OUT FEES ARE, THEY FLUCTUATE, BUT IT DOES LOOK LIKE WE'RE AT 80%. AND WE HAVE ANOTHER QUARTER TO GO. DOES THAT MEAN WE'RE GOING TO POTENTIALLY EXCEED IT BY END OF FISCAL YEAR? NO. I BELIEVE THE TRANSFERS OUT ALSO INCLUDE, SO TYPICALLY WHEN THE CITY COUNCIL AUTHORIZES TRANSFERS OUT AS PART OF THE ADOPTED BUDGET, WE RECORD THOSE TRANSFERS OUT ON A QUARTERLY BASIS. [02:10:01] SO IT SHOULD BE A 25% BUILDUP THROUGHOUT THE YEAR. HOWEVER, AS PART OF THE CARRY FORWARD REPORT THAT GOES TO THE CITY COUNCIL, USUALLY IN THE MONTH OF SEPTEMBER OF A RESPECTIVE FISCAL YEAR, THERE MAY BE ONE TIME RECOMMENDATIONS TO TRANSFER OUT SOME EXCESS RESERVES. AND THAT WAS THE CASE THIS YEAR. AND THAT'S WHY WE'RE SEEING A HIGHER SPEND IN RESPECT TO THE BUDGET. BUT ON A PROPORTIONAL BASIS, WE WILL NOT BE EXCEEDING THE AVAILABLE BUDGET. GOTCHA. AND THEN FOR THE HOTEL OCCUPANCY TREND AND THE ADR, IT LOOKS LIKE TO ME JUST THROUGH THE LINE GRAPH THAT THIS FIRST QUARTER OF THIS YEAR SEEMS TO BE QUITE THE REBOUND, RIGHT, IN COMPARISON TO THE LAST TWO. FOR THAT AS WELL AS THE NEXT TWO MONTHS, IF YOU GUYS WERE ABLE TO EVEN GET THAT TYPE OF ANALYSIS, ARE THERE REASONS WHY? TYPICALLY FOR OUR TOURISM DATA, IT FOLLOWS SEASONAL TRENDS, SO WE WOULD EXPECT TO HAVE A SIMILAR TREND FROM PREVIOUS MONTHS. I MEAN, IT CAN BE ANYTHING FROM A HUGE FLUX OF TOURISM THAT COMES INTO THE VILLAGE AREA IN THE DOWNTOWN. IT COULD ALSO BE CONFERENCES, SO WE EXPECT JUST SIMILAR TRENDS FOR THAT MONTH. WE DIDN'T GET, LIKE, A REPORT FROM THE HOTELIERS OR ANYTHING OF SAYING, LIKE... WE ACTUALLY GET DATA DIRECTLY FROM VISIT CARLSBAD, SO THAT'S OUR KEY PARTNER THERE. AND THEY DIDN'T SAY WHY THERE WAS A MORE PRONOUNCED REBOUND THIS YEAR THAN AS OPPOSED TO THE OTHER TWO. I THINK I REMEMBER KIM MENTIONING IN OUR SUBCOMMITTEE MEETING SOMETHING ABOUT THE WEATHER, RIGHT? OH, THAT'S RIGHT. I THINK THAT MARCH WAS PARTICULARLY WARM, AND SO I THINK THAT SHE ATTRIBUTED IT TO THAT, BUT I THINK MAYBE SHE WAS GUESSING. YEAH, NO, IT SEEMS GOOD. IT SEEMS LIKE WHATEVER WE COULD DO, SO IF IT'S WEATHER, GREAT. I WAS GOING TO BLAME YOU, BUT YEAH, JUST BECAUSE YOU'RE HERE NOW. ALL RIGHT, THANK YOU. OTHER QUESTIONS? COULD I JUST ADD SOMETHING TO THAT POINT? YES, MS. POPATOW. JUST REALLY QUICK, I THINK IF I DON'T IF I'M NOT MISTAKEN, DURING THAT MEETING, I THINK THEY HAD ALSO MENTIONED GROUP TRAVEL COMING BACK. SO I KNOW THAT HAD BEEN HURTING DURING COVID. AND SO I DO KNOW THAT THEY MENTIONED THAT GROUP TRAVEL AND CORPORATE TRAVEL IS STARTING TO COME BACK. AND THAT'S ALSO HELPING. SO JUST WANTED TO HIGHLIGHT THAT PIECE. MS. BURKHOLDER. THANK YOU. I'M NOT ENTIRELY SURE HOW TO ASK THIS QUESTION, BUT IT'S FANTASTIC IN MY MIND. SO IF YOU LOOK BACK ON SLIDE 13, IT'S GOT A BAR GRAPH. I THINK IT'S SLIDE 13 AND MAYBE PAGE 13. I DON'T KNOW. THE NUMBER 13 WAS ON MY SCREEN UP HERE, BUT IT'S THE ORANGE AND THE BLUE AND THE GREEN. WHEN WE TALK ABOUT OUR BUDGETING, WE TAKE THAT CONSERVATIVE APPROACH TO PROJECTIONS. SO MY QUESTION IS, BASED ON THIS, EVERYTHING WAS UNDER THE, NOT EVERYTHING, MOST THINGS WERE UNDER THE PROJECTION OF WHAT THE ACTUALS ARE. SO MY QUESTION IS, HOW DOES THAT RELATE TO ACTUALLY HOW WE BUDGETED VERSUS, SO IN OTHER WORDS, ARE WE NOT BEING CONSERVATIVE ENOUGH IS THE QUESTION. YES, THAT'S IT. THANK YOU FOR THAT QUESTION. I THINK IT PRIMARILY APPLIES TO SALES TAX. WHERE OVER THE LAST TWO YEARS OUR SALES TAX REVENUES HAD COME IN AT EXCEPTIONALLY HIGH LEVELS. AND PART OF THAT, WHICH WE'VE REPORTED OUT FOR A NUMBER OF QUARTERS NOW, WAS ATTRIBUTABLE TO A TAXPAYER ERROR THAT WAS IDENTIFIED THROUGH A CDTFA AUDIT AND REMEDIED. WHEN WE WERE GOING THROUGH THAT PROCESS AND SEEING THE SALES TAX INCREASES, WORKING CLOSELY WITH OUR SALES TAX CONSULTANT, WE WERE UNDER THE IMPRESSION THAT THAT WAS GOING TO NOT BE ONE TIME IN NATURE, BUT RATHER AN ONGOING INCREASE. SO WE DID TAKE, WHEN WE WERE DEVELOPING THIS CURRENT YEAR'S FISCAL YEAR 26 BUDGET, IT DID APPLY A RELATIVELY HIGH DEGREE OF CONSERVATISM, IF YOU WILL, AND CAUTIOUSNESS TO ACCOUNT FOR ANY MARKET UNCERTAINTY. BUT IT ALSO ASSUMED THAT THAT TAXPAYER ERROR CORRECTION WAS GOING TO... CONTINUE ON AN ONGOING BASIS. SO WHEN WE SEE A $4 MILLION DECREASE YEAR OVER YEAR, THAT REALLY, AND ESPECIALLY FROM A BUDGET ESTIMATE STANDPOINT, IT IS, THAT IS THE PRIMARY DRIVER. AND WE'LL HAVE MORE OF A CONVERSATION AROUND WHAT THOSE ESTIMATES LOOK LIKE FOR NEXT WEEK. YEAH. BUT YES. OKAY. THANK YOU. BECAUSE I WANTED TO BE ABLE TO BRING THAT UP. WE NEED TO GO MORE, YOU KNOW, THE OTHER DIRECTION. SO, OKAY, THANK YOU FOR THAT CLARIFYING QUESTION. THANK YOU FOR ASKING THAT QUESTION BECAUSE I WAS THINKING THE SAME THING. IN DOLLARS AND CENTS, [02:15:01] HOW LARGE WAS THAT ERROR? IT WAS, I DON'T HAVE THE EXACT FIGURE. APPROXIMATELY. IT WAS APPROXIMATELY $4 MILLION. IT WAS $4 MILLION. OKAY. THANK YOU. MS. ACOSTA? THANK YOU. SO, I ACTUALLY. JUST KIND OF WANTED TO GIVE AN OPPORTUNITY TO MS. ANGSTOR TO INTRODUCE YOURSELF BECAUSE YOU'RE FIRST TIME PRESENTING AT CITY COUNCIL AND YOU'RE NEW AS OUR ECONOMIC DEVELOPMENT DIRECTOR AND I WAS WONDERING IF YOU WOULD MIND DOING A BRIEF INTRO. SURE. IT FEELS LIKE IT'S BEEN A YEAR NOW. I'M NEW STILL. GOOD. SO I'M TESS ANGSTOR, ECONOMIC DEVELOPMENT DIRECTOR. I CAME FROM THE CITY OF SAN MARCOS. I WAS THERE FOR 10 AND A HALF YEARS AS ECONOMIC DEVELOPMENT DIRECTOR. SUPER EXCITED TO BE HERE. THE COMPANY'S ARE SO IMPRESSIVE IN CARLSBAD. AND RACHEL AND I HAVE ALREADY BEEN WORKING WITH A LOT OF THEM AND JUST DIVING RIGHT IN. SO EXCITED TO BE HERE. THANK YOU FOR THE OPPORTUNITY. GREAT. THANK YOU. I'M SURE YOU HEARD MY COMMENTS ON THE EARLIER AGENDA ITEM ABOUT WHAT A GREAT CULTURE WE HAVE HERE AND WHAT A TEAM IT FEELS LIKE IN CARLSBAD. SO I'M HAPPY TO HAVE YOU AS PART OF OUR TEAM. AND THANK YOU ALSO FOR THE INFORMATION. I DID MAKE A NOTE. THERE WAS ONE OTHER... PART OF THE PRESENTATION THAT REALLY STUCK OUT TO ME BESIDES NOTING THE DECLINE IN SALES AND THAT IT LOOKS LIKE GOOD TOT NUMBERS. ON SLIDE SEVEN, THE AVERAGE SALARY OF ALMOST $59,000, DO YOU KNOW WHAT OUR AVERAGE MEDIAN INCOME IS AND HOW IT COMPARES? I DO. I WAS LIKE, GO AHEAD, COUNCIL MEMBER, IF YOU WANT TO CHECK. BUT WE CAN DEFINITELY GET THAT BACK TO YOU. IT'S BEEN FLUCTUATING, QUITE HONESTLY, AND IT REALLY VARIES BY SECTOR AND INDUSTRY. SO IT REALLY JUST DEPENDS ON WHICH INDUSTRY SPECIFICALLY WE WOULD WANT TO LOOK AT. YEAH, I MEAN, IT'S NOT A GREAT NUMBER. I MEAN, THOSE ARE LOWER SALARY JOBS. IF IT'S $59,000 ANNUAL SALARY AND OUR AVERAGE MEDIAN INCOME IS ABOUT $100,000 IN THIS AREA. AND WE TALKED ABOUT THE HOUSING CRISIS, THE COST OF HOUSING. IT WAS IN YOUR PRESENTATION, TOO. I KNOW THE NUMBER THAT WAS. THERE FOR CARLSBAD, IT WAS $1.4 MILLION OR SO RIGHT NOW. BUT REALISTICALLY, IT'S HIGHER. EVEN FOR, SAY, A CONDO THAT MAYBE COSTS $850,000 TO PURCHASE A CONDO, YOU'RE ALSO PAYING A $500 HOA. SO THE ACTUAL COST OF LIVING, OF YOUR RENT AND YOUR HOUSING EXPENSES, PLUS YOUR INFLATION FOR YOUR COST OF GOODS, YOUR GROCERIES AND YOUR HEALTH CARE AND ALL THE OTHER THINGS YOU'RE PAYING FOR, IS VERY EXPENSIVE. AND I THINK WE'RE ALL FEELING A LOT OF THAT PRESSURE. AND AS POLICYMAKERS, IT'S SOMETHING THAT WE ALL HAVE TO THINK ABOUT AS WE'RE MAKING OUR BUDGET DECISIONS. BUT THIS IS VERY TIMELY. THANK YOU AS WE GO INTO OUR BUDGET SEASON. THANK YOU AGAIN FOR ALL YOUR HARD WORK. YES, THANK YOU. JUST A COUPLE OF DIFFERENT QUESTIONS, AND ACTUALLY IT WAS FUNNY, THE SALARY QUESTION FOR ME WAS ON THERE TOO AROUND, JUST TO CLARIFY FOR THAT SPECIFICALLY, WHEN WE TALK ABOUT AVERAGE SALARY, ARE THOSE THE ONES FOR JOBS ON THE MARKET OR IN GENERAL? AND I'M GOING TO LEAVE IT AT THAT. I HAVE AN ASSUMPTION, BUT I WANT TO LEAVE IT AT THAT. YEAH, IT'S... THAT'S PRETTY MUCH, I MEAN, YOU SEE THE 1,300 UNIQUE JOB POSTINGS. THAT'S BASED ON THE AVERAGE SALARY FOR THOSE JOB POSTINGS CURRENTLY IN THE MARKET. YEAH, AND THAT'S WHAT I HAD ASSUMED, BUT I JUST WANTED TO MAKE SURE. YEAH, AND THEN IN TERMS OF, THIS IS SOMETHING THAT I'VE ASKED BEFORE AND SOMETHING THAT I'M ALWAYS CURIOUS ABOUT, AND I DON'T KNOW IF WE HAVE THIS, BUT I'M CURIOUS IF THERE IS DATA ON, YOU KNOW, THE AVERAGE HOUSEHOLD SPEND AND BREAKING IT DOWN WITH REGARDS TO, AND... I'M NOT SAYING THAT WE AS A CITY SHOULD BE COLLECTING THIS, BUT IF THERE ARE REGIONAL FOLKS THAT ARE COLLECTING THIS INFORMATION, BUT LIKE THE GROCERIES, GAS, ET CETERA, ALL THOSE DIFFERENT THINGS, PROPERTY TAX, IT'S JUST HELPFUL FROM EVERYTHING THAT WE LOOK AT IN ORDER TO, NOT ONLY FOR US, BUT I'M SURE FOR OTHER POLICYMAKERS TO FIGURE OUT, LIKE, OKAY, HOW DO WE WORK TOWARDS THIS? BUT DO WE HAVE ANY OF THAT SPECIFIC DATA THAT WE RECEIVE? AND THEN CAN WE DRILL IT DOWN TO CARLSBAD TO REALLY LOOK AT WHAT'S GOING ON? YEAH, SO AT A HIGH-LEVEL OVERVIEW, IT'S USUALLY THE CONSUMER PRICE INDEX. SO WE GET THAT DATA, AS I WAS MENTIONING, FROM THE WESTERN REGION, BUT ALSO FOR SAN DIEGO COUNTY SPECIFICALLY. SO REALLY IT'S JUST AN INFLUX IN TERMS OF HOW MUCH PEOPLE ARE ACTUALLY PAYING FOR THOSE PRICE OF GOODS. IT'S NOT THE ACTUAL BOTTOM-LINE NUMBER OF YOU'RE PAYING $4 FOR EGGS, BUT BASICALLY IT'S JUST A FLUCTUATION FOR HOW MUCH THAT PRICE VOLATILITY REALLY IS. OKAY. YEAH, I FEEL LIKE SOMEONE SHOULD BE DOING THAT JUST SO THAT WE CAN START TO LOOK AT THAT BECAUSE I MEAN... SURE, WE HEAR THE AVERAGE PRICE OF EGGS OR WHATEVER ELSE, BUT KNOWING WHAT THE AVERAGE FAMILY IN CARLSBAD IS SPENDING WOULD BE SO HELPFUL BECAUSE I THINK IT'S JUST SOMETHING THAT'S IMPORTANT. WE HEAR IT EVERY SINGLE DAY. [02:20:01] AND THAT GOES TO MY NEXT QUESTION AROUND SALES TAX BECAUSE I KNOW WE TALKED ABOUT THE ERROR, UNDERSTAND THAT PIECE, BUT THE OTHER PIECE THAT I WAS CURIOUS ABOUT IS I'M GUESSING WE'RE ALSO SEEING A REDUCTION DUE TO THE HIGH COST OF LIVING. I MEAN, PEOPLE ARE... TIGHTENING YOU KNOW WHAT THEY'RE SPENDING ON SO I WOULD ASSUME THAT SOME OF IT IS ALSO BASED ON THAT ABSOLUTELY THANK YOU FOR THE QUESTION SO WHEN WHEN WE PRESENT THE INFORMATION WE OFTEN WILL TALK ABOUT WHAT ACTUAL CASH BASIS DIFFERENCES THERE WERE FROM ONE PERIOD TO THE NEXT AND THEN WE'LL ALSO USE THE TERM ECONOMICALLY ADJUSTED TO TAKE OUT SOME OF THOSE ANOMALIES LIKE THE TAXPAYER ERROR CORRECTIONS SO ON A ON AN ECONOMICALLY ADJUSTED BASIS, YEAR OVER YEAR, WE WERE DOWN APPROXIMATELY 3.6% FOR JUST THIS QUARTER THAT WE'RE TALKING ABOUT. AND THAT IS PURELY INDICATIVE OF DIMINISHING CONSUMER DEMAND, CONSUMER CONFIDENCE, AND FOR THE REASONS THAT YOU HAD MENTIONED, YES. OKAY, THANK YOU. I JUST HAVE COMMENTS, BUT THOSE ARE MY QUESTIONS. THANK YOU. ANY COMMENTS, MR. SHAND? THANK YOU FOR THE REPORT. IT DOES SEEM LIKE WE'RE GOING TO HAVE SOME, THERE'LL BE SOME DISRUPTIONS MOVING FORWARD, AND WE'LL JUST SEE WHERE IT GOES. IT'LL BE INTERESTING TO SEE HOW THE BUDGET'S PRESENTED IN REGARDS TO, YOU KNOW, WHETHER WE CAN REFLECT ANYTHING THAT WE'RE SEEING MOVING FORWARD WITH COST OF TENURE AND EVERYTHING. SO, BUT THANK YOU FOR BEING ON THE PULSE OF ALL OF THIS. MS. PERKHOLDER, MS. ACOSTA. I PRETTY MUCH ALREADY SHARED MY COMMENTS AND MY QUESTIONS. THANK YOU. MS. BOB PATEL. YES, I JUST WANT TO SAY THANK YOU FOR THE UPDATE, AND ALSO TO OUR CITY TREASURER, MR. PEACOCKS, FOR BEING HERE. AND CLEARLY WE HEARD SOME OF YOUR INVESTMENTS ARE HELPING US STABILIZE WHAT'S GOING ON, SO JUST APPRECIATE ALL THE WORK THAT'S HAPPENING. AND I THINK IT'S GOING TO BE REALLY, I WOULD LOVE IF THERE'S ANY WAY, I'M JUST GOING TO PUT ANOTHER PLUG IN, TO FIGURE OUT HOW WE COULD GET SOME OF THAT DATA. I KNOW WE MIGHT NOT BE ABLE TO. I SEE THE CITY MANAGER. ANGLING TOWARDS HIS MICROPHONE, BUT I JUST WANT TO SAY THAT IT TRULY IS IMPORTANT JUST BECAUSE WE HAVE SO MANY DIFFERENT FOLKS TO JUST LIKE UNDERSTAND THE WHOLE LAY OF THE LAND. BUT AT THE SAME TIME, AS WE'RE MAKING DECISIONS ABOUT THE BUDGET, WHAT TYPES OF WAYS THAT WE NEED TO LOOK AT IT IS ALWAYS HELPFUL. SO OTHER THAN THAT, NOTHING ELSE. JUST WANT TO SAY THANK YOU. I WOULD JUST ADD THAT SHOULD THAT INFORMATION BE AVAILABLE AT THAT GRANULAR LEVEL, WE WILL CERTAINLY... TRY TO LOCATE IT, MAKE IT AVAILABLE TO THE CITY COUNCIL. AND THERE'S BEEN A FEW COMMENTS ABOUT THE UPCOMING BUDGET PERIOD. AT OUR NEXT COUNCIL MEETING, WE'LL BE PRESENTING THE PROPOSED BUDGET FOR THE NEW FISCAL YEAR. THE PROPOSAL WILL REFLECT SOME OF THE SLOWING NUMBERS THAT WE ARE SEEING IN THE SALES TAX, SO THAT WILL BE ACCOUNTED FOR WITH THE CONSERVATIVE ESTIMATES THAT WE'RE SEEING HERE. WHAT I'M BRINGING FORWARD WILL INCLUDE AND ASSUMES A SLOWDOWN AS WELL. GREAT. THANK YOU. NOTHING MORE. THANK YOU. [13. ESTABLISHMENT OF SEWER BENEFIT AREA N ] SO THIS IS JUST A REPORT. SO THANK YOU VERY MUCH. ITEM NUMBER 13, CITY MANAGER. ITEM NUMBER 13 IS AN ESTABLISHMENT OF A SEWER BENEFIT AREA. AND FOR DECADES, A LONGSTANDING OPINION OF CARLSBAD DECISION MAKERS, AS WELL AS A TENET OF THE CITY'S GROWTH MANAGEMENT PROGRAM, HAS BEEN THAT NEW DEVELOPMENT MUST PAY ITS OWN WAY BY PLANNING FOR CONSTRUCTING AND PAYING FOR THE PUBLIC INFRASTRUCTURE AND FACILITIES NECESSARY TO SERVE THE NEW DEVELOPMENT. TODAY, HOWEVER, UNDER THE GUISE OF A HOUSING CRISIS, THE STATE LEGISLATURE HAS SYSTEMATICALLY RESTRICTED A CITY'S ABILITY TO PROPERLY REGULATE AND CONDITION HOUSING GROWTH. PARCELS DESIGNED TO ACCOMMODATE FOUR UNITS ARE NOW SEEING PROPOSED HOUSING DEVELOPMENTS THAT ARE TWO AND THREE TIMES THE AMOUNT BECAUSE OF LAWS LIKE DENSITY BONUS. WHILE AS A CITY WE'RE LIMITED ON APPLYING STANDARDS ON NEW DEVELOPMENT, WE ARE CURRENTLY STILL ABLE TO IMPOSE IMPACT FEES AND CAPACITY CHARGES ON NEW GROWTH, SO DEVELOPERS PAY THEIR FAIR SHARE OF THE COSTS OF NECESSARY INFRASTRUCTURE AND FACILITIES FOR THEIR DEVELOPMENTS. TONIGHT'S ACTION PROPOSES THE INTRODUCTION OF A NEW SEWER BENEFIT AREA AND CAPACITY FEE TO HELP FUND DEVELOPMENT-DRIVEN SEWER UPGRADES IN NEIGHBORHOODS IN THE NORTHWEST AREA OF THE CITY, INCLUDING THE VILLAGE AND BARRIO. THESE CAPACITY FEES ONLY APPLY TO NEW DEVELOPMENT OR REDEVELOPMENT. EXISTING RESIDENTS AND PROPERTY OWNERS WHO ARE NOT DEVELOPING OR REDEVELOPING THEIR OWN PROPERTIES WILL NOT BE SUBJECT TO THESE FEES. THIS NEW SEWER CAPACITY FEE WILL NOT ONLY MEET THE EXPECTATION THAT NEW DEVELOPMENT MUST PAY ITS FAIR SHARE, THE FEE WILL ALSO HELP TO ENSURE THAT OLDER SEWER INFRASTRUCTURE SYSTEM, SIZED FOR THE AMOUNT OF DEVELOPMENT ANTICIPATED [02:25:01] BY THE CITY'S GROWTH MANAGEMENT PROGRAM WILL NOT FAIL UNDER THE WEIGHT OF OF ALL THE NEW HOUSING THE STATE IS FORCING THE CITY TO ACCEPT. TO GIVE THE PRESENTATION ON THIS ITEM IS ASSISTANT UTILITIES DIRECTOR DAVE PADILLA AND UTILITIES DIRECTOR AMANDA FLESSE. THANK YOU FOR THAT INTRODUCTION, CITY MANAGER, MAYOR, MEMBERS OF THE CITY COUNCIL. TODAY'S PRESENTATION WILL REVIEW THE RECOMMENDED ACTION, FOLLOWED BY BACKGROUND INFORMATION ON SEWER CAPACITY CHARGES, THE CITY'S SEWER COLLECTION SYSTEM. AND DEVELOPMENT DRIVERS, A DESCRIPTION OF SEWER BENEFIT AREA N, THE CONSIDERATIONS AND FINDINGS OF THE ENGINEERING REPORT, AND NEXT STEPS. THE RECOMMENDED ACTION BEFORE YOU TONIGHT IS TO ADOPT A RESOLUTION ESTABLISHING SEWER BENEFIT AREA N AND A CORRESPONDING SEWER CAPACITY FEE IN ACCORDANCE WITH THE 2026 ENGINEER'S REPORT. SBA FEES. OUR CAPACITY CHARGES, AS DEFINED IN THE MITIGATION FEE ACT, CAPACITY CHARGES ARE USED TO FUND UPGRADES TO EXISTING PUBLIC INFRASTRUCTURE OR NEW PUBLIC FACILITIES. THE CHARGE MUST PROVIDE A PROPORTIONAL BENEFIT TO THE PERSON OR PROPERTY BEING CHARGED, AND THE CHARGE SHALL NOT EXCEED THE ESTIMATED REASONABLE COST OF PROVIDING THE SERVICE FOR WHICH THE FEE OR CHARGE IS IMPOSED. IN 1929... THE CARLSBAD SANITARY DISTRICT CONSTRUCTED THE EARLIEST SEGMENTS OF THE SEWER COLLECTION SYSTEM IN WHAT IS NOW DOWNTOWN CARLSBAD. THE CITY WAS INCORPORATED IN 1952, AFTER WHICH TIME THE SEWER SYSTEM IN THE NEIGHBORHOODS OF THE VILLAGE, BARRIO, NORTH BEACH, AND OLD CARLSBAD WERE EXPANDED THROUGH THE 1970S. THE SYSTEM IMPROVEMENTS AT THE TIME WERE FUNDED BY BONDS ISSUED BY ASSESSMENT DISTRICTS AND REPAID BY THE BENEFITING PROPERTIES THROUGH SEWER CONNECTION FEES AND CAPACITY CHARGES. THE 1986 GENERAL PLAN PROVIDED A GROWTH FORECAST FOR THE CITY WITH MOST OF THE GROWTH CONCENTRATED EAST AND SOUTH OF THE DOWNTOWN AREA. IN 1987, THE CITY'S SEWER MASTER PLAN IDENTIFIED THE SEWER SYSTEM IMPROVEMENTS NEEDED TO SERVE THE GROWTH AREAS IDENTIFIED IN THE 1986 GENERAL PLAN. THEN IN 1991, THE CITY ESTABLISHED THE SEWER BENEFIT AREA PROGRAM, CREATING 13 BENEFIT AREAS LABELED A THROUGH M TO COLLECT REVENUE FOR SEWER SYSTEM IMPROVEMENTS CONSTRUCTED BY THE CITY OR BY DEVELOPMENT PROJECTS TO SERVE NEW GROWTH. SOME OF THE GROWTH DRIVERS THAT HAVE INFLUENCED DEVELOPMENT IN THE DOWNTOWN AREA INCLUDE THE VILLAGE AND BARRIO MASTER PLAN. ADOPTED BY THE CITY IN 2019, WHICH ESTABLISHED THE VISION FOR THE FUTURE CHARACTER AND DEVELOPMENT OF THE VILLAGE AND BARRIO NEIGHBORHOODS. THE HOUSING ACCOUNTABILITY ACT, ENACTED IN 1982, HAS BEEN RECENTLY AMENDED TO PROMOTE HOUSING DEVELOPMENT AND LIMIT LOCAL GOVERNMENT DISCRETION. DENSITY BONUS LAW ALLOWS DEVELOPMENT PROJECTS TO EXCEED LOCAL DENSITY LIMITS IN EXCHANGE FOR PROVIDING AFFORDABLE HOUSING. INCENTIVES AND WAIVERS OF DEVELOPMENT STANDARDS ARE ALLOWED WITH AN INCREASE IN AFFORDABLE HOUSING UNITS. SUCH WAIVERS OF DEVELOPMENT STANDARDS MAY APPLY TO WATER AND SEWER INFRASTRUCTURE. SENATE BILL 330, SIGNED INTO LAW AS PART OF THE HOUSING CRISIS ACT OF 2019, AMENDED THE HOUSING ACCOUNTABILITY ACT AND THE PERMIT STREAMLINING ACT. THIS LAW ADDED NEW PROVISIONS TO THE GOVERNMENT CODE TO EXPEDITE HOUSING DEVELOPMENT AND TO LIMIT LOCAL RESTRICTIONS OR CONDITIONS ON HOUSING PROJECTS. GOVERNMENT CODE 66323 PROVIDES THAT A LOCAL AGENCY MUST MINISTERIALLY APPROVE AN APPLICATION FOR A BUILDING PERMIT TO CREATE AN ACCESSORY DWELLING UNIT OR A JUNIOR ADU IN A RESIDENTIAL OR MIXED-USE ZONE. SENATE BILL 937 AMENDED THE MITIGATION FEE ACT AND PROHIBITS LOCAL AGENCIES FROM COLLECTING CERTAIN DEVELOPMENT-RELATED FEES UNTIL FINAL INSPECTION OF A PROJECT. OR ISSUANCE OF A CERTIFICATE OF OCCUPANCY. THE NET EFFECT OF THESE LAWS AND SIMILAR LAWS IS AN INCREASE IN DEVELOPMENT AND REDEVELOPMENT ACTIVITY AND AT HIGHER DENSITIES THAN CONTEMPLATED FOR THE VILLAGE AND BARRIO AND ADJACENT NEIGHBORHOODS. [02:30:01] THIS BRINGS US TO THE PROPOSED SEWER BENEFIT AREA IN STUDY AREA WHICH INCLUDES THE NEIGHBORHOODS OF THE VILLAGE, BARRIO, NORTH BEACH, AND MUCH OF OLD CARLSBAD. THESE NEIGHBORHOODS HAVE SOME OF THE OLDEST SEWER INFRASTRUCTURE IN THE CITY, SIZED FOR LOWER DEVELOPMENT DENSITIES THAN ARE OCCURRING TODAY. THE ENGINEERS REPORT SERVES AS THE BASIS FOR THE SBAN FEE AND IT EVALUATES LAND USE AND ZONING WHICH GOVERN THE TYPE AND DENSITY OF DEVELOPMENT. AN ESTIMATE OF EXISTING AND FUTURE DEVELOPMENT DENSITY, THE HYDRAULIC CAPACITY OF THE SEWER SYSTEM FOR FUTURE DEVELOPMENT CONDITIONS, IDENTIFICATION OF SEWER SYSTEM IMPROVEMENTS THAT ARE NECESSARY TO SERVE FUTURE DEVELOPMENT, AND THE COST FOR THOSE IMPROVEMENTS. THE REPORT FINDS THAT AN ESTIMATED 6,460 EQUIVALENT DWELLING UNITS WILL BE ADDED TO THE SEWER COLLECTION SYSTEM. FOR THE DEVELOPMENT DENSITY PLAN FOR IN THE STUDY WHICH INCLUDES A 20 PERCENT DENSITY BONUS ON THE APPROVED GENERAL PLAN AND THE VILLAGE AND BARRIO MASTER PLAN DENSITIES ONE EDU REPRESENTS THE AMOUNT OF SEWER FLOW GENERATED FROM A TYPICAL SINGLE FAMILY HOME THE REPORT ALSO FINDS THAT CAPACITY UPGRADES ARE NEEDED IN FIVE PIPELINE GROUPS TOTALING 1.98 MILES AND AT THE HOME PLANT AT LIFT STATION. AT THE NORTHERN BOUNDARY OF SBA INN. THE WASHINGTON STREET SEWER, SHOWN IN PURPLE, IS ONE OF THE SEWERS CONSTRUCTED IN 1929 BY THE CARLSBAD SANITARY DISTRICT, AND IT IS STILL IN SERVICE TODAY. THE TOTAL COST OF THE IMPROVEMENTS IS ESTIMATED AT $30,754,478. BASED ON THE TOTAL COST OF THE PROPOSED IMPROVEMENTS, AND THE NUMBER OF EDUS TO BE ADDED TO THE SYSTEM, THE PROPOSED SBAN FEE IS $4,761 PER EQUIVALENT DWELLING UNIT. I REITERATE THAT THIS FEE IS A SEWER CAPACITY CHARGE IMPOSED ON NEW DEVELOPMENT OR REDEVELOPMENT THAT INCREASES SEWER DEMAND IN THE SEWER COLLECTION SYSTEM. THE FEE IS NOT PAID BY EXISTING WASTEWATER CUSTOMERS THAT ARE NOT INCREASING THEIR SEWER DEMAND. TO SUM IT UP, GROWTH PAYS FOR THE SEWER CAPACITY CHARGE. FOR GROWTH. THIS IS HOW THE PROPOSED FEE COMPARES TO SEWER CAPACITY FEES OF NEIGHBORING NORTH COUNTY AGENCIES AND THE LARGEST MUNICIPALITY IN THE SAN DIEGO REGION. AT THE TOP OF THE CHART IS THE PROPOSED SBAN FEE. THE SECOND LINE INCLUDES THE GENERAL CAPACITY FEE OF $1,289 PER EDU, WHICH APPLIES TO EVERY NEW SEWER CONNECTION. OR INCREASE IN SEWER DEMAND THROUGHOUT THE CITY. WHEN COMBINED WITH THE PROPOSED SBA IN FEE, THE TOTAL FEE WOULD BE $6,050 PER EDU. AS FOR NEXT STEPS, THE SBA AND FEE WOULD BECOME EFFECTIVE 60 DAYS AFTER ADOPTION. THE FEE WOULD BE UPDATED ANNUALLY TO ACCOUNT FOR INFLATION OR DEFLATION, SHOULD WE EVER SEE IT, ACCORDING TO THE ENGINEERING NEWS RECORD CONSTRUCTION COST INDEX. STAFF WOULD CONTINUE TO MONITOR DEVELOPMENT ACTIVITY AND SEWER DEMAND IN THE SYSTEM TO DETERMINE IMPLEMENTATION SCHEDULES FOR SEWER CAPACITY PROJECTS. STAFF WOULD THEN RETURN TO CITY COUNCIL FOR THE AWARD OF CITY CONSTRUCTION CONTRACTS OR FOR THE APPROVAL OF REIMBURSEMENT AGREEMENTS FOR DEVELOPER CONSTRUCTED CAPACITY UPGRADES. IN CLOSING, THE RECOMMENDED ACTION IS TO ADOPT A RESOLUTION ESTABLISHING SEWER BENEFIT AREA IN AND A CORRESPONDING SEWER CAPACITY FEE IN ACCORDANCE WITH THE 2026 ENGINEERS REPORT. THAT CONCLUDES THE PRESENTATION. AND I WELCOME YOUR QUESTIONS. DO WE HAVE SPEAKERS? THERE ARE NO SPEAKERS. QUESTIONS FROM COUNCIL? MR. SHIN. THANK YOU FOR THE REPORT. THE COMPARISON CHART THAT YOU HAD UP THERE WITH THE MULTIPLE CITIES, ARE THERE REASONS WHY WE ARE SET AT THE WAY WE ARE? CAN WE EXPAND IT? OR, YOU KNOW, WHEN I'M LOOKING AT THE OTHER CITIES AND SOME ARE HIGHER AND LOWER, DO WE HAVE FLEX IN THAT PRICE? THE FEE IS SPECIFIC TO THE DEVELOPMENT DENSITY THAT IT WILL SERVE AND THE CAPACITY IMPROVEMENTS THAT ARE REQUIRED. YOU'LL NOTICE THAT, FOR INSTANCE, THE VALLECITOS WATER DISTRICT HAS SOME [02:35:03] OF THE HIGHEST FEES. THEY ALSO HAVE SOME OF THE LONGEST CONVEYANCE SYSTEMS THAT GET THE SEWER FLOW FROM THEIR SERVICE AREA TO THE ENCINO WASTEWATER TREATMENT PLANT. SO IT'S VERY LOCALE-SPECIFIC AND DENSITY-SPECIFIC. GOTCHA. OKAY. THAT'S ALL. ANY OTHER QUESTIONS? THANK YOU. AND JUST TO FOLLOW UP ON THAT QUESTION, CAN YOU FURTHER EXPLAIN HOW THIS IS COST RECOVERY VERSUS, YOU KNOW, JUST CHARGING AN ARBITRARY? I KNOW THAT YOU SHOWED THE FORMULA, BUT CAN YOU EXPLAIN COST RECOVERY? ABSOLUTELY. SO MY STATEMENT OF GROWTH PAYS FOR GROWTH IS REALLY PREDICATED ON THE NEED TO PROVIDE SEWER CAPACITY IN A SYSTEM THAT IS NOT SIZED TO RECEIVE. THE LEVEL OF DENSITY THAT WE'RE EXPERIENCING. ABSENT THE SEWER BENEFIT AREA FEE, THE COST WOULD HAVE TO BE PASSED ON TO THE RATEPAYER, WHICH IS NOT A PREFERENCE FOR OBVIOUS REASONS. GREAT. THANK YOU. AND I THINK I WAS ALSO TRYING TO GET AT THAT THIS IS VERY CAREFULLY CALCULATED AND IT PAYS FOR THE WORK BEING DONE. IT'S NOT VERY... GENERIC OR GENERAL ESTIMATE, IT REALLY IS CAREFULLY TIED TO THE WORK THAT ACTUALLY NEEDS TO BE DONE. THANK YOU. ANY OTHER QUESTIONS, COMMENTS? OH, DO YOU HAVE A QUESTION, MS. BURKHOLDER? PLEASE. THANK YOU, STAFF, FOR BRINGING THIS FORWARD. ABSOLUTELY. IT'S SOMETHING THAT I HAVE DISCUSSED FREQUENTLY UP HERE AND IN OTHER SETTINGS, THE UNFUNDED MANDATES THAT SACRAMENTO CONTINUES TO IMPOSE ON US. BASICALLY, THEY MAKE IT HARD FOR US TO PLAN. YOU KNOW, IN CONDITION REALLY FOR THESE KIND OF DEVELOPMENTS IN THE CITY AND ESPECIALLY IN AN AREA WHERE YOU TALK ABOUT SEWAGE PIPES BEING SINCE 1929. THAT'S A MINUTE. SO THIS IS SOMETHING THAT I THINK HAS CONSEQUENCES. AND IF WE DON'T DO AND I'M YOU KNOW, I THINK IT ATTEMPTS TO BASICALLY ADDRESS THE PROBLEM BEFORE WE LOOK AT TAXPAYERS PAYING THAT 30 MILLION DOLLAR PRICE TAG THAT YOU MENTIONED. SO I DO HAVE A COUPLE QUESTIONS, AND BASICALLY WE KIND OF DISCUSSED THIS. DEVELOPERS, THEY'RE NOT PAYING FOR AN ENTIRELY NEW INFRASTRUCTURE. IT'S JUST GOING TO BE WHAT THEIR LOAD IS, WHAT THEY'RE USING ESSENTIALLY, YEAH? ABSOLUTELY. THE EXISTING SYSTEM WE HAVE TODAY HAS BEEN PAID FOR BY THE RESIDENTS AND BUSINESSES OF CARLSBAD. THIS IS NEW DEVELOPMENT, AND THEIR IMPACT, TOO. A COLLECTION SYSTEM THAT WAS NOT SIZED TO RECEIVE THE FLOW THAT WE'RE SEEING NOW. RIGHT. WE'RE NOT ASKING SOMEONE TO COME IN HERE AND REBUILD EVERYTHING. AND THIS IS FOR PROJECTED STUFF. SO ARE WE THINKING ABOUT DENSITY BONUSES WHEN WE'RE TALKING ABOUT NEW BUILDS? AND YOU MENTIONED SB 330 IN YOUR PRESENTATION. YES, WE HAVE INCLUDED A DENSITY BONUS IN THE PROJECTION FOR THE STUDY AREA. WE'VE ASSUMED A 20% DENSITY BONUS STUDY AREA WIDE. IT SEEMS LIKE A LOW NUMBER BECAUSE WE'RE SEEING DENSITY BONUSES FOR INDIVIDUAL PROJECTS IN THE 150 TO 200 PERCENT. BUT THE REASON WE CHOSE... THE 20% FACTOR IS BECAUSE THAT FACTOR IS APPLIED THROUGHOUT THE STUDY AREA, AND THAT'S A GROSSLY CONSERVATIVE ASSUMPTION IN THAT NOT EVERY PROPERTY IS GOING TO SEE A DENSITY BONUS OF THAT LEVEL. THERE WILL BE SOME PROPERTIES THAT SEE A HIGHER DENSITY BONUS AND OTHER PROPERTIES THAT WILL NOT SEE ANY DENSITY BONUS. RIGHT, AND YOU MENTIONED, YOU KNOW, EVEN ADUS, THEY CAN BE LIKE 1,200 SQUARE FEET, WHICH IS A SINGLE-FAMILY HOME SIZE. SO, YES, THEY CREATE QUITE A LOAD. BUT YOUR POINT BRINGS ME TO MY LAST QUESTION. IN CASE THE CITY MANAGER WASN'T BEING PAID VERY CLOSE ATTENTION TO IN THE BEGINNING, WHAT IF YOU'RE AN EXISTING HOMEOWNER AND YOU WANT TO DO SOME IMPROVEMENTS, HOW IS THIS GOING TO IMPACT YOU? IF THE IMPROVEMENTS DO NOT INVOLVE THE ADDITION OF SEWER FIXTURES, THERE IS NO SPA FEE THAT WOULD BE IMPOSED. OKAY. I DON'T HAVE ANY FURTHER QUESTIONS. I'M VERY HAPPY TO SUPPORT THIS. IF THERE ARE NO FURTHER COMMENTS, I'M HAPPY TO MAKE THE MOTION. YOU GOT IT. MS. ACOSTA. THANK YOU. I OBVIOUSLY, YOU KNOW, I SIT ON THE LEGISLATIVE SUBCOMMITTEE WITH COUNCILMEMBER BURKHOLDER, AND WE TALK SO MUCH ABOUT THE BILLS COMING DOWN FROM SACRAMENTO THAT ARE WELL INTENDED TO ADDRESS THE HOUSING CRISIS, BUT MAYBE HAVE UNINTENDED CONSEQUENCES AND MAYBE SOMETIMES DON'T REALLY CARE. CITIES ARE BEARING THE BURDEN OF HAVING TO ADD TO UPGRADE ENHANCE OUR INFRASTRUCTURE TO ALLOW FOR ADDITIONAL BUILDINGS AND SOMETIMES WE HAVE TO TAKE ACTION THAT IS [02:40:03] PROACTIVE THAT IS REALLY THOUGHTFUL ABOUT WHAT IS COMING WHAT IT WHAT THE FUTURE IS AND ESPECIALLY IN IN THIS AREA IN DISTRICT ONE? WE KNOW THAT THERE IS OLDER INFRASTRUCTURE AND WE HAVE TO ADDRESS IT. SO THANK YOU FOR BEING PROACTIVE. THANK YOU FOR UNDERSTANDING THE NEED FOR THIS, AND I'M VERY HAPPY TO SUPPORT IT. MS. BOB PATEL. YES, THANK YOU. JUST WANTED TO ECHO THE SENTIMENTS OF GRATITUDE TO BRING THIS FORWARD. I KNOW I'D BEEN HEARING ABOUT THIS FROM MANY FOLKS, AND I'M GLAD THAT THERE WAS A SOLUTION THAT YOU ALL CAME UP WITH THAT IS GOING TO ADDRESS THIS. SO JUST A HUGE THANK YOU ON THAT FRONT. I'M HAPPY TO SECOND THE MOTION. I THINK COUNCIL MEMBER BURKHOLDER ALREADY MADE. MR. SHIN. JUST A REAL QUICK THANK YOU TO PUBLIC WORKS FOR MAINTAINING A 100-YEAR-OLD SEWAGE PIPE. THAT'S PRETTY IMPRESSIVE, SO JUST SHOUT OUT TO THAT. ONE OF THE PUBLIC SPEAKERS EARLIER MADE A COMMENT ABOUT ME SAYING, PLEASE DON'T LET US BE LIKE SAN DIEGO AND HAVE OUR SEWER AND WATER PROBLEMS BE HEADLINE NEWS. YOU'VE DONE A REALLY GOOD JOB AT THAT, SO THANK YOU VERY MUCH. MOTION, PLEASE. OH, DO WE HAVE ANOTHER COMMENT? I THINK HE WANTS ME TO SAY IT. MOVE ADOPTION OF THE RESOLUTION ESTABLISHING A SUPER BENEFIT AREA IN. SECOND. PLEASE VOTE. THAT PASSES UNANIMOUSLY. [PUBLIC COMMENT] AND THAT BRINGS US TO THE CONCLUSION OF OUR AGENDA. MR. SHIN, ANYTHING? OH, I'M SORRY. NO COMMENT. OH, WE HAVE MORE PUBLIC SPEAKERS. I'M SO SORRY. THANK YOU. PLEASE CALL THEM. WE HAVE SOME THAT ARE PROBABLY NOT HERE. WESLEY BODENSTEINER, ZEPHYR PEARSON, AUTUMN PERLMAN. GOOD EVENING, COUNCIL. THANK YOU SO MUCH FOR YOUR TIME. MY NAME IS AUTUMN PERLMAN, AND I'M A FRESHMAN AT CARLSBAD HIGH SCHOOL. AS AN EYE FOR THE STUDENT POPULATION AND AN ENVIRONMENTAL ACTIVIST, I'VE NOTICED AN ISSUE ON THE CARLSBAD UNIFIED SCHOOL DISTRICT CAMPUSES, PLASTIC FOOD CONTAINERS. RECENTLY, I ATTENDED THE CARLSBAD STUDENT LEADERSHIP ACADEMY, WHICH IS A PROGRAM PUT ON BY THE CITY THAT TEACHES US ABOUT LEADERSHIP TO MAKE A MEANINGFUL CHANGE IN OUR COMMUNITY. I'VE LEARNED THAT I CANNOT CONTINUE TO BE A BYSTANDER IN THIS ISSUE AFFECTING OUR ENVIRONMENT, COMMUNITY, AND CHILDREN. CHAPTER 6.20 OF THE MUNICIPAL CODE OF CARLSBAD, CALIFORNIA, ALSO KNOWN AS THE SINGLE-USE PLASTIC FOOD, WERE BANNED. ELIMINATES THE DISTRIBUTION OF SINGLE-USE PLASTIC AND FOOD CONTAINERS WITHIN CITY LIMITS. HOWEVER, THE MOST PRESSING CHALLENGE WITH THIS LEGISLATION IS THE FACT THAT IT DOES NOT APPLY TO EVERY SINGLE FACILITY WITHIN THE CITY. SPECIFICALLY, BOTH PUBLIC AND PRIVATE SCHOOLS ARE EXEMPT FROM THIS POLICY. THIS LIMITS THE POTENTIAL ADDITIONAL IMPACT THAT THIS LEGISLATION COULD HAVE. A 2022 NATIONAL INSTITUTES OF HEALTH ARTICLE ESTIMATES THAT U.S. PUBLIC SCHOOLS GENERATE ABOUT 14,500 U.S. TONS, OR 29... MILLION POUNDS OF WASTE EVERY DAY, WITH ABOUT 42% OF THAT BEING FROM FOOD PACKAGING GENERATED BY THE SCHOOL FOOD SERVICE. EXPANDING OUR CURRENT LEGISLATION TO INCLUDE ALL SCHOOLS IN THE CITY. AND NOT ONLY DECREASE OUR CONTRIBUTION TO THIS GROWING WASTE ISSUE, BUT ALSO INCREASE ALL THE OTHER BENEFITS THAT CHAPTER 6.20 PROVIDES. ADDITIONALLY, CONCERNS INCLUDING COSTS AS A RESTRICTION TO THIS AMENDMENT ARE COMPLETELY UNFOUNDED. FOR EXAMPLE, IN GLENDALE, CALIFORNIA, BENJAMIN FRANKLIN ELEMENTARY IMPLEMENTED A SYSTEM OF REUSABLE FOOD CONTAINERS, WHICH RESULTED IN LOWER COSTS IN THE LONG TERM DUE TO LESS TRASH VOLUME AND A MORE EFFICIENT WASTE PROGRAM. WE COULD SEE PARALLELS IF THIS WERE IMPLEMENTED IN CARLSBAD. THEREFORE. I RESPECTFULLY REQUEST THAT THE CITY OF CARLSBAD LOOK TO PARTNER WITH THE CARLSBAD UNIFIED SCHOOL DISTRICT TO AMEND THIS SECTION OF THE BILL AND REVERSE THE EXEMPTION. INCREASING THE ENFORCEMENT OF OUR CURRENT WASTE MANAGEMENT SYSTEM WITHIN SCHOOLS, AS WELL AS EXPANDING CARLSBAD'S ALREADY MANDATED POLICY, WILL LOWER COSTS, IMPROVE SUSTAINABILITY, AND IMPROVE THE ENVIRONMENTAL TENFOLD. THANK YOU FOR YOUR TIME AND CONSIDERATION. KATHLEEN STEINDLBERGER. HI, GOOD EVENING, COUNCIL, MAYOR BLACKBURN. THAT WAS A GREAT SPEECH. IT WAS REALLY GOOD TO SEE SO MANY YOUNG STUDENTS SPEAKING TONIGHT. IT'S REALLY GREAT TO SEE THE COMMUNITY COME OUT. I AM A 27-YEAR RESIDENT OF CARLSBAD IN DISTRICT 2, AND I WAS ALSO ON THE BEACH PRESERVATION COMMISSION FOR SIX YEARS OR SOMETHING ALONG THOSE LINES. SO A LOT OF TIMES I DO COME AND TALK ABOUT BEACHES, AND I EVEN KNOW THE BEACHES ON THE... CITY LOGO OVER THERE. I NOTICED THAT IN THE THREE HOURS I WAS SITTING HERE TONIGHT. SO I CAME TO SPEAK ABOUT THE CITY OF CARLSBAD'S CONTINUED, I GUESS I WOULD CALL IT [02:45:01] SUPPORT, OF JOHN LEVY'S ALMOST THREE DECADES LONG LACK OF COMPLIANCE WITH THE COASTAL ACT CONDITIONS OF APPROVAL TO BUILD HIS PROPERTY. I WAS HAPPY TO SEE THE LOCKED GATE ON MOUNTAIN VIEW THANK YOU. MY WAY, OPENED FOLLOWING THE CALIFORNIA COASTAL COMMISSION MEETING IN OCTOBER. UNFORTUNATELY, COASTAL ACCESS IS STILL BLOCKED FOR ADA ACCESS ACROSS TO THE BEACH DOWN TO THE NORTHERN BEACH IN CARLSBAD. THERE ARE UNPERMITTED BOLLARDS AND THERE'S SOME NON-NATIVE ICE PLANT BLOCKING ACCESS TO THE BEACH. SO IF YOU GO DOWN THERE AND YOU'RE IN A WHEELCHAIR, IT'D BE REALLY DIFFICULT TO GET DOWN THERE. AT THE COASTAL COMMISSION PUBLIC HEARING IN OCTOBER, ONE OF THE COASTAL COMMISSIONERS, WHO I BELIEVE HE'S FROM CHULA VISTA, HE USES A WHEELCHAIR, HE COMMENTED THAT HE WOULD LOVE TO BE ABLE TO DRIVE DOWN AND ACCESS THE BEACH AND LAGOON AT THIS LOCATION. LET'S SEE, I SCRIBBLED MY NOTES SO MANY TIMES. IN THE PAST, THE CITY HAS NOT PROVIDED THE ADA ACCESS. AND THEY'VE GIVEN THE REASON THAT IT'S TOO EXPENSIVE TO CLEAR AND MAINTAIN THIS TRAIL. BUT MY QUESTION IS, AND I DON'T KNOW IF THIS IS THE CASE OR NOT, BUT IF WE'RE HAVING TO PAY FOR LEGAL DEFENSE OF OUR CITY, HOW MUCH DOES THAT COST COMPARED TO JUST OPENING UP THIS TRAIL NOW AND PROVIDING THE ACCESS? WE'VE HAD A LOT OF BEACH ACCESS CLOSED OFF RECENTLY. WE'VE HAD THE SIDEWALKS, SO THERE'S NO PARKING ON CARLSBAD BOULEVARD. BETWEEN. TAMARACK AND CARLSBAD VILLAGE. THE LAST FEW DAYS THE PARKING LOT AT TAMARACK, THE STATE BEACH PARKING LOT, HAS BEEN CLOSED. THERE'S NOT THAT MANY PLACES TO GET TO THE BEACH IF YOU'RE HANDICAPPED IN CARLSBAD. I KNOW WE HAVE SOME FUTURE PROJECTS THAT ARE COMING UP BUT IT WOULD BE REALLY GREAT IF WE COULD OPEN THAT PROJECT UP AND KIND OF TURN AROUND AND GET RID OF THIS LITTLE EPISODE OF THE CITY OF CARLSBAD SUPPORTING A PRIVATE PROPERTY OWNER OVER THE CITIZENS OF CARL'S BATH. ALL RIGHT, THANKS. HAVE A GOOD EVENING. BOB VIZOTKI. [COUNCIL COMMENTARY AND REQUESTS FOR CONSIDERATION OF MATTERS] AND NOW THAT BRINGS US TO THE END OF OUR AGENDA. ANY CLOSING COMMENTS, MR. SHIN? MS. BURKHOLDER? YEAH, THANK YOU, MAYOR. I THINK WE'RE FINISHED WITH ALL THE THIRD GRADERS IN CARLSBAD UNIFIED SCHOOL DISTRICT AND OTHER PLACES COMING THROUGH CITY HALL TO REENACT A CITY COUNCIL MEETING. IT WAS VERY FUN INTERACTING WITH THEM. AND ONE OF MY FAVORITE THINGS TO DO IS ASK THEM WHO LOOKED BEHIND THE BLUE CURTAIN, BECAUSE IF THEY DON'T ASK ME WHAT'S BEHIND IT, I KNOW THEY LOOKED BACK THERE. BUT GREAT TIME WITH THAT LAST WEEK. THE MAYOR AND I WERE AT THE POLICE DEPARTMENT VOLUNTEER LUNCHEON WHERE I LEARNED THAT I BELIEVE, AND MAYBE CHIEF CALDERWOOD CAN CORRECT ME IF I'M WRONG, THE VOLUNTEERS PROVIDED OVER 07,000 HOURS OF SERVICE TO OUR CITY. AND, IN FACT, A FEW OF THEM HAD TO LEAVE LUNCH TO GO AND DO THE FARMER'S MARKET THAT DAY, SO I GOT A BIG KICK OUT OF THAT. THEY'RE VERY DEDICATED TO THEIR WORK, AND WE APPRECIATE THEM. GRAZE AT THE FLOWER FIELDS IS ALSO IN THE LAST WEEK. IT'S A BEAUTIFUL EVENT PUT ON BY FARM BUREAU. SEVERAL OF US WERE THERE FOR THAT. I ALWAYS TAKE HOME A PLANT AND A COUPLE OF VEGETABLES, AND I HAVEN'T THEM YET, BUT THERE'S NO PROMISES THERE. THE CROSSFIT STREET FAIR HAPPENED. IF YOU DIDN'T HAVE A CHANCE TO GO OUT AND SEE IT, IT WAS AN AMAZING EVENT THIS YEAR. I THINK, IN MY ESTIMATION, THERE WERE MORE PEOPLE THAN I'VE EVER SEEN THERE, AND I'VE BEEN EVERY YEAR THAT I CAN REMEMBER. A WILD AND FUN EVENT, JUST GOOD FUN FOR THE FAMILY AND THE BUSINESSES AND EVERYBODY. IT'S AT A STREET FAIR, SO THEY'RE ALL HAPPY, SO THAT WAS GREAT. COUNCILMEMBER SHEN AND I WERE ABLE TO GO TO THE GREEN BUSINESS RECOGNITION MIXER AT APTERA. IF YOU DON'T KNOW ABOUT APTERA, LOOK THAT UP. IT'S AN ELECTRIC VEHICLE. IT'S GOING TO BE MADE RIGHT HERE IN CARLSBAD. THEY'RE FANTASTIC. THEY LOOK DIFFERENT FROM THE FUTURE, SO I ENCOURAGE YOU TO LOOK AT THAT. AND THEN A NEW COUNCIL MEMBER, BOB PATEL, AND I THINK WE'RE THE ONLY ONES THAT ATTENDED THE SAN DIEGO NORTH ECONOMIC DEVELOPMENT SUMMIT, WHICH IS ALWAYS GREAT AT PROVIDING A BEAUTIFUL SNAPSHOT OF ALL THE NORTH COUNTY CITIES AND WHAT THEY'RE DOING IN THE AREA OF ECONOMIC DEVELOPMENT. AND, OF COURSE, WE OUTSHINE EVERYBODY, SO THAT'S JUST GREAT. AS COUNCIL MEMBER ACOSTA MENTIONED THIS MORNING, WE DID HAVE LEGISLATIVE SUBCOMMITTEE. IT CONTINUES TO BE A GREAT EXERCISE AND ROBUST AND RESPECTFUL DISCUSSION ABOUT HOW THE LEGISLATION THAT WE SPOKE ABOUT EARLIER IMPACTS US HERE IN CARLSBAD, AND THAT IS ALL THE REPORT I HAVE. THANK YOU. MS. [02:50:01] ACOSTA. THANK YOU. AND, YES, WE HAD AN EXCELLENT LEGISLATIVE SUBCOMMITTEE MEETING THIS MORNING RIGHT HERE, AND YOU CAN WATCH THE VIDEO IF YOU MISSED IT ON OUR WEBSITE OR ATTEND THE NEXT MEETING. YOU'RE ALWAYS WELCOME. THAT'S ONCE A MONTH RIGHT HERE AT COUNCIL CHAMBERS. IT'S A... TUESDAY MORNING BEFORE COUNCIL. JUST LOOK IT UP ON THE WEBSITE. I DON'T HAVE THE DATE. I ATTENDED ON MONDAY, YESTERDAY, GOODNESS, THE LEAGUE OF CALIFORNIA CITIES SAN DIEGO COUNTY DIVISION MEETING. IT WAS A REALLY SPECIAL MEETING BECAUSE WE CELEBRATED THE ANNIVERSARY OF BIOTECH IN THE REGION AND WE HAD A PANEL DISCUSSION ABOUT THE FUTURE OF LIFE SCIENCES IN OUR REGION. SO OBVIOUSLY LIFE SCIENCES IS IMPORTANT HERE IN CARLSBAD TO OUR ECONOMY, BUT IT IS FOR THE ENTIRE REGION. WE HAD AN EXCELLENT PRESENTATION AND ALSO A VISIT FROM THE CURRENT PRESIDENT OF CALCITIES, WHO IS A COUNCIL MEMBER IN THE CITY OF EL CERRITO IN THE BAY AREA. GABE QUINTO CAME DOWN AND VISITED WITH US. THAT WAS A REALLY GREAT MEETING. I ALSO HAVE COMING UP A WATER STUDY TRIP. THIS IS A TRIP OF FARMS. WITH THE SAN DIEGO COUNTY FARM BUREAU LEADERSHIP, IT'S THIS FRIDAY AND REALLY JUST DISCUSSING WHAT THE WATER ISSUES ARE FOR FARMERS BECAUSE AGRICULTURE IS ANOTHER IMPORTANT PART OF OUR ECONOMY. AND IF FARMERS ARE STRUGGLING TO GET THE WATER THEY NEED TO WATER THEIR CROPS, WE'RE GOING TO HAVE A REAL PROBLEM WITH AGRICULTURE GOING AWAY IN OUR REGION. SO WE WANT TO BE SUPPORTIVE AND WE WANT TO LEARN THE ISSUES DEEPLY. SO THAT'S ANOTHER BIG THING HAPPENING THIS WEEK. I HOPE YOU ALL HAVE A GREAT WEEK AND I HOPE YOU ALL HAD A GREAT MOTHER'S DAY. MS. BOBCATEL. YES, THANK YOU. OVER THE LAST COUPLE WEEKS, I HAD THE CLEAN ENERGY ALLIANCE MEETING. I, TOO, WAS AT THE ECONOMIC DEVELOPMENT SUMMIT, AND THE THEME IN THE LAST COUPLE DAYS WAS AROUND BIOTECH AND LIFE SCIENCES. GENENTECH WAS ONE OF THE FEATURED SPEAKERS THERE FOR THEIR 50 YEARS IN THE REGION. AND THEN WITH THE MAYOR, I HAD THE OPPORTUNITY TO CLOSE OUT CITY STUFF, WHICH WAS FUN. AND JUST HAVING TO CHAT WITH OUR THIRD GRADERS AND THE QUESTIONS THEY ASK IS ALWAYS FUN TO HEAR. CAL CITY'S DIVISION MEETING WAS GREAT TO HEAR ABOUT LIFE SCIENCES, BIOTECH. I KNOW, AS YOU HEARD, GREAT HUB HERE IN THE CITY OF CARLSBAD. AND THEN, OF COURSE, JUST THE GREAT TALENT THAT WE HAVE IN OUR REGION THAT'S REALLY MAKING SURE THAT WE CAN CONTINUE TO BE A GREAT ECONOMIC DRIVER AND INNOVATOR. AND THEN I KNOW WE HAD THE GRAZE OUT ON THE FLOWER FIELDS, THE STREET FAIR, AND THEN THE PEACE OFFICER. [CITY MANAGER COMMENTS] ESTHER'S MEMORIAL RUN IS THIS WEEKEND, WHICH I'M LOOKING FORWARD TO. AND I HOPE THAT EVERYONE HAD AN AWESOME MOTHER'S DAY. CITY MANAGER. THANK YOU. I'M JUST, FOR THE RECORD, TO REMIND EVERYONE AT THE LAST MEETING, WHICH WAS ONLY 30 MINUTES LONG, I SAID THE NEXT MEETING WAS [CITY ATTORNEY COMMENTS] GOING TO BE A BIT LONGER, SO THE FACT THAT WE'RE JUST AT THREE HOURS, I DID MANAGE EXPECTATIONS. THE NEXT AGENDA NEXT WEEK IS GOING TO BE A LITTLE SHORTER IN ITEMS. HOWEVER, IT IS OUR PROPOSED BUDGET FOR THE NEW FISCAL YEAR, AND WE LOOK FORWARD TO SHARING IT WITH COUNCIL. CITY ATTORNEY. I WANTED TO TAKE AN [ANNOUNCEMENTS] OPPORTUNITY. MY SON IS PLAYING IN A PLAYOFF GAME RIGHT NOW FOR HIS LITTLE LEAGUE TEAM, SO I WANTED TO WISH COOPER, GOOD LUCK, AND I'M SAD I COULDN'T BE THERE TODAY, BUT THANK YOU EVERYONE FOR LETTING ME SIT UP HERE WITH YOU TODAY. DEDICATED ATTORNEY. CITY CLERK. OKAY. ANNOUNCEMENTS, SATURDAY, MAY 16TH AT 9 O'CLOCK A.M., PEACE OFFICERS MEMORIAL RUN. IT'S AT CANNON PARK, 100 CANNON ROAD IN CARLSBAD. SATURDAY, MAY 16TH AT 5 O'CLOCK P.M., PRIDE AT THE BEACH, NORTH COUNTY LGBTQ RESOURCE CENTER. 1919 APPLE STREET IN OCEANSIDE AND I HAVE A COUPLE OF POSITIVES TO SHARE WITH YOU. WE HAD THE CRYSTAL APPLE AWARDS. THOSE ARE WHERE TEACHERS ARE NOMINATED BY STUDENTS TO WIN AN AWARD. CONGRATULATIONS TO SCOTT OGDEN, DANA WURGIS, KATHY EASTERBROOK, LYNETTE NICHOLS, ANDREA ROBERTS. ONE OF THE FUN STORIES I HEARD IS ONE OF THE TEACHERS STARTS THE CLASS AT THE BEGINNING OF THE YEAR WITH A FUNERAL FOR THE PHRASE, I CAN'T. I THOUGHT THAT WAS CUTE. AND THAT SAME TEACHER, IF HE LOSES THE ATTENTION OF HIS CLASS, HE DOES A HANDSTAND AND GETS THE ATTENTION BACK FROM THIS CLASS. I THOUGHT THAT WAS ADORABLE. AND WE TALKED A LITTLE BIT ABOUT THE VOLUNTEER APPRECIATION LUNCH. SOMETIMES I GO... TALK TO GROUPS AND THEY ASK ME WHAT THEY SHARE WITH GROUPS WHAT'S WHAT'S SO POSITIVE ABOUT VOLUNTEERING ONE OF THE VOLUNTEERS SENIOR VOLUNTEERS THAT'S WHAT HE'S ONE OF THE SENIORS IN OUR COMMUNITY WHO DRIVES AROUND IN THE POLICE CARS BUT THEY ALSO HELP THE POLICE OFFICERS BUT ONE OF THE BEST [02:55:01] THINGS THEY DO IS CALLED YANA THAT STANDS FOR YOU ARE NOT ALONE AND THEY CHECK ON HOMEBOUND SENIORS AND HE WAS VERY PROUD TO SAY DURING HIS TENURE AS A SENIOR VOLUNTEER, HE HAS, BY VISITING ELDERLY PEOPLE, HE HAS FOUND THREE DIFFERENT PEOPLE WHO HAVE FALLEN AND WERE NOT ABLE TO CALL FOR HELP. AND HE WAS ABLE TO GET THERE AND BE THE ONE WHO WAS ABLE TO GET THEM HELP AND SAID THAT THAT WAS RIDICULOUSLY REWARDING AND WAS WORTH EVERY MINUTE OF ALL OF HIS VOLUNTEER HOURS. SO WITH THAT, WE'RE ADJOURNED. * This transcript was compiled from uncorrected Closed Captioning.