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HomeMy WebLinkAbout2009-04-28; City Council; MinutesCITY OF CARLSBAD CITY COUNCIL WORKSHOP SPECIAL MEETING Safety Center 2560 Orion Way Carlsbad, CA Tuesday, April 28, 2009 11 a.m. to conclusion of business at approximately 2 p.m. MINUTES CALL TO ORDER: The Mayor called the meeting to order at 11:00 a.m. ROLL CALL: Lewis, Kulchin, Hall, Packard, Blackburn 1. Council discussion on Council Member reports on regional roles and assignments, as necessary, including: There was no discussion on this item. Blackburn Packard Hall Kulchin Lewis Buena Vista Lagoon JPC Chamber of Commerce Liaison City/School Committee Encina Joint Powers (JAC) Encina Wastewater Authority North County Dispatch Joint Powers Authority (alternate) Buena Vista Lagoon JPC City/School Committee North County Transit District Board of Directors *North County Transit District Planning Committee League of California Cities - SD Division North County Dispatch Joint Powers Authority Chamber of Commerce Liaison SANDAG Board of Directors SANDAG Executive Committee SANDAG Transportation Committee CalCoast Board of Directors Carlsbad ConVis (alternate) Encina Joint Powers (JAC) Encina Wastewater Authority (EWA) North County Transit District (alternate) *San Diego Authority for Freeway Emergencies (SAFE) SANDAG Board of Directors (2ndalternate) *SANDAG Shoreline Preservation Committee LAFCO Cities Advisory Committee North County Mayors and Managers SANDAG (1st alternate) San Diego County Water Authority Board of Directors City Council Workshop - April 28, 2009 Requests to Speak on a listed item: A total of 15 minutes is provided. Please submit a speaker card indicating the item you wish to address. Comments/speakers are limited to three (3) minutes each. There were no speakers at this time. 2. Update and discussion on the financial forecast. Michele Tamayo, City Consultant, opened the discussion by stating that items 1 and 2 are in follow-up to the Business Forum Workshop of April 15, 2009. She gave a short presentation on the outline for today's workshop entitled "The Carlsbad Stimulus Plan". Ms. Tamayo stated that City Manager Lisa Hildabrand would review Council goals and priorities, Finance Director Lisa Irvine would clarify the future financial forecast, and that she would facilitate the selection of key ideas. Ms. Hildabrand reviewed the Athena Top Priority - Stategic Goals worksheet of April 27, 2009 with the Council. This document is on file in the Office of the City Clerk. Ms. Irvine spoke about the Ten Year Financial Forecast, General Fund. This document and a supporting document are on file in the Office of the City Clerk. Council discussion ensued regarding the State Election of May 19, 2009, and the probabilities of the proposed tax increases passing. Mayor Lewis cautioned staff that if the propositions do not pass the state will look to the cities for additional funding. Ms. Irvine confirmed that monies are held in reserve for such a funding contingency. Rob Huston, Management Analyst, updated the Council on monies available for the City from the Federal Stimulus Package. He noted the dispersal of the Federal funds to several areas such as transportation infrastructure and energy efficiency. He stated that staff is preparing grants and looking for other opportunities within the stimulus package. He noted that traffic synchronization could be supported by these monies. 3. Discussion, follow-up and direction to staff on possible implementation strategies resulting from the April 15, 2009 Council workshop addressing input from local businesses. Ms. Tamayo noted evaluation criteria that Council could use to rate or rank various ideas from the business community: return on investment, accountability, business plan and projections, direct improvement in revenue/jobs, matching or in-kind contributions, monitoring/reporting, timely results. Council received a handout entitled "Business Forum Ideas". This handout is on file in the Office of the City Clerk. Debbie Fountain, Director of Housing and Redevelopment, reviewed 12 items listed under the topic Redevelopment/Village. She noted that many ideas are being researched by staff. City Council Workshop - April 28, 2009 At 12:05 p.m. Mayor Lewis declared a brief recess for lunch. At 12:10 p.m. he continued the workshop with all Council Members present. Director of Economic Development Cynthia Haas reviewed the ideas listed under City Promotions. Council asked questions about the support of "Endless Summer" a tourism based marketing program. Ms. Haas also reviewed the topics of Regional Support and Fees. Don Neu, Planning Director, addressed the Building Industry Association's request regarding impact fees. This document is on file in the Office of the City Clerk. Director of Community Development Sandra Holder spoke to Council regarding the ideas listed under Regulatory Process, Reduce CEQA Timelines, Facilitate and Smart Growth Development and Affordable Housing Subsidies/Incentives. Ms. Holder noted that turnaround times have improved in her departments and that performance measures are in place. Ms. Holder referred to her handout, City Gate Implementation Update, April 27, 2009. This document is on file in the Office of the City Clerk. Ms. Holder noted that as the state allows map extension times her groups follow suit. She also noted that building permits are being extended due to the slowdown of the economy. Ron Ball, City Attorney, stated that he will review the laws regarding Charter City regulation of the extension of tentative and final maps. Council discussion ensued regarding the ideas presented and those ideas that could be implemented in a relatively short time. Council concurred to support the following list of projects: • Support of the Endless Summer Tourism Marketing Campaign. • Support a Developer/Chamber/Building Industry/City dialog on efficiencies and processes. • Direct staff to return with a report/funding regarding lighting in the Village. • Direct staff to create an RFP for visual art/art expansion in the City. • Direct staff to create a proposal/plan for creation of an incubator for new businesses. • Direct staff to research/evaluate what special events could do for the City and review various types of special events. • Join in partnerships with the community in marketing Carlsbad. City Manager Lisa Hildabrand stated that staff would work on each of these projects and return with details and timelines. The Mayor asked that staff contact the Building Industry Association to find out what issues they may have with the Regulatory Processes discussed at the Workshop. Kristina Rey, Communications Manager, updated Council regarding the communications to the City regarding Village H. City Council Workshop - April 28, 2009 4. City Manager review of goal and major project tracking report and update discussion of Council goal setting process and discussion of capacity and effectiveness in the delivery of City processes and services. There was no discussion on this item. 5. Discussion of Council efficiency and effectiveness including impact of regional assignments with regard to contact with other Council members, decision and policymaking, serving the community and effective methods of feedback. There was no discussion on this item. 6. Discussion of feedback, communications or correspondence on issues for the good of the community, including directions to the City Manager or City Attorney, as appropriate, for the scheduling of items for future agendas, workshops or study sessions. There was no discussion on this item. Requests to Speak: Continuation of Requests to Speak (if necessary) Lisa Rodman, Carlsbad, spoke about her meetings with various groups regarding tourism, special events and the proposed Alga Norte Park. ADJOURNMENT: The Mayor adjourned the meeting at 1:43 p.m. •'WUU tW-V M. WOOD, CMC "4T Cd Staff Responsible Business Forum Ideas Action/Staff Comments Debbie Fountain Debbie Fountain Debbie Fountain Debbie Fountain Debbie Fountain Redevelopment/Village: 1. More lighting in the central village area (between light poles/light the trees) a. Enhances ambiance to create an inviting, friendly environment that welcomes the public to come and shop 2. Public restrooms a. It would encourage the public to stay longer in the central village area and alleviate incidents of people urinating in public 3. Parking a problem in the central village area a. The closing of the parking area on the corner of Carlsbad Village Dr. and State St. has worsened the situation i. Rent the recently closed lot on south State St. on a "monthly" basis as an interim use b. Weekend signage to the available parking, especially the Coaster train station parking lot c. Rent parking from the churches for public parking on Mondays - Saturdays d. Have promoters of special events (such as Carlsbad 5K) make arrangements to park participants' cars at the Westfield Mall and bus runners of the Carlsbad 5K over, as the Village Faire does. e. Do diagonal parking Staff has been researching a lighting project; goal this year to "lighten up" the Village which includes methods for adding lights to public and/or private facilities. No project to date to add public restrooms; currently available at train station, CONVIS and Beach (but not late night) No plans to re-lease or purchase subject lot due to unreasonable private lease amount/purchase price; researching other opportunities for providing public parking (i.e., NCTD) Additional signage being researched by staff. No project to date to rent parking from churches; can look at if desired by Council. Request can be forwarded to special events committee for consideration as a condition of approval for Village events. A diagonal parking study was recently completed, and angle parking will be added between Roosevelt Street and Hope Avenue. COPY Debbie Fountain Debbie Fountain Debbie Fountain Debbie Fountain Debbie Fountain Debbie Fountain 4. Focused marketing of the village area a. Have buses pick up tourists from the Flower Fields* and bring them to the Village instead of vice versa. 5. Special seasonal theme events - events with council support of advertising, extra police, and streets designed for pedestrian only traffic 6. Make the Village more car-friendly 7. 8. 9. Consider designating an arts district with New Village Arts Theater as the center The Village Farmer's Market organizer and vendors should be compensated by promoters who force cancellation of the market for their events. Incorporate a reasonable fee into the application permit. Re-examine the Carlsbad Village Improvement Partnership (CVIP) a. Funding need Will coordinate with CVIP and CVBA to determine if this can be part of Village marketing campaign'being sponsored by these organizations. No project to date to be implemented by City. Contrary to Village Master Plan to make area more pedestrian friendly, but efforts to make it easier to find public/private parking under consideration Business Development Plan for Village includes a strategy to increase arts, culture and entertainment throughout the Village; no plans currently for designating one area only of Village as an arts district. When the Farmer's Market was originally approved to use the public parking lot, there were several events which had been in the Village for years and also using the same lot. It was understood at that time that the CVBA would need to defer to these earlier events. All of the events benefit the Village. Compensation to the CVBA by these other events does not seem appropriate. New events would need to defer to the Farmer's Market use. CVIP continues to work to obtain their non-profit corporation status. Funding can be reconsidered at any time by the Council. Debbie Fountain Debbie Fountain Debbie Fountain Cynthia Haas Jim Elliott/ Cynthia Haas 10. Extend the Redevelopment District for ten years (ask the State) 11. Have Farmers Market on Sunday and moved to State St. 12. Allow big banner signs City Promotion: 1. Review and install better signage to tourist and visitor locations - airport, public beaches, visitor parking, location of each lagoon, Discovery Center, and Legoland. 2. Urge staff to strive to earn "Business Friendly City of the Year" awards from EDC/Chamber of Commerce/others Staff does not believe that State legislators will have any interest in extending the effectiveness date for the Carlsbad Village Redevelopment Plan, Staff is working on plan to allow continued implementation of redevelopment projects & programs for next year 10 years which is permitted within existing regulations. The Farmer's Market is sponsored and managed by the CVBA. Staff has previously requested that the CVBA reconsider the days and/or location for the Farmer's Market. This request will be forwarded again to CVBA for their consideration. Large banners across the streets or on the public light poles/traffic signals are not currently allowed by City Code or Council policy for private events or sponsors. Large banners on private properties are allowed for new businesses and on the day of a special event only. City ordinances would need to be revised to allow. No project to date to do so. This could be addressed as a part of the Economic Strategic Plan Recommendation, or as a project to be implement by the CTBID. Staff will need to research the various award programs and present the Council with the criteria used to judge which cities are considered business friendly. Council may direct the staff to pursue those programs and policies that would qualify Carlsbad to enter the competition Jim Elliott 3. Assist non-governmental organizations (NGOs) in festivals and events a. The "Annual Celebrity Fishing Event" was not repeated because of staff block of events involving public b. Have more Level 1 Special Events c. Have an umbrella signature events for the Arts selected by Council. Staff has reviewed the existing special events process and Code sections dealing with Special Events. Modifications have been proposed to streamline the special events process. These changes will be reviewed in May and be presented to the Council by the end of this fiscal year. Level One Special Events such as the Acura Open and PGA Golf Tournaments are initiated and organized by groups other than the City. Upon request the City assists groups wanting to bring large events to the City. To date there are no requests-to bring such an event to the City. Level J events may be sponsored by the City or other entities, including large corporate sponsors that work directly with venues such as the La Costa Hotel and Spa, Aviara Four Seasons, major television networks, and national sports associations. Some high profile events such as the Acura Open and PGA tournament are handled exclusively by outside promoters and the City has/had no role in attracting the event, and limited influence in keeping the event inc Carlsbad. If the Council is interested in actively pursuing large scale events, they may direct staff to work with the major hotels and attractions to identify candidate events, and attempt to attract them events to Carlsbad. The City already offers several events promoting the arts which draw a regional market. Chief among them is TGIF Jazz in the Parks. 4 Jim Elliott Jim Elliott Cynthia Haas Rob Houston 4. Invest City money to promote tourism 5. Endless Summer Campaign Regional Support: 1. Support initiatives at the local, state, and federal level to assist the revitalization of the housing industry and the creation of jobs in the San Diego Region. 2. Efforts to ensure that Carlsbad receives its fair share of stimulus funding. In 2006, the City formed the Carlsbad Tourism Business Improvement District (CTBID), and appointed the general managers from 7 hotels to control the spending of approximately $750,000 per year. This represented a 50% increase over the amount previously invested from City general fund contributions which had been at about $500,000 per year. After the formation of the CTBID the City's contribution was dropped. There is no proposal to add tourism promotion back to the general fund budget at this time. The CTBID has approved an advertising program targeting • Orange and LA Counties. The CTBID is proposing that this $250,000 campaign be funded by $100,000 from the CTBID revenue, $50,000 from a grant from NRG, and $100,000 from the City of Carlsbad general fund. Their request was expressed by Reint Reinders at the Business Forum last week. If Council would like to contribute funds to this campaign they should approve the donation of $100,000 from the general fund to the CTBID. New Legislation and local program initiatives can be evaluated as they are made available for review and brought forward to the City Council. The City is actively pursuing Economic stimulus funding through Grants and other funding. For example the City will shortly Cynthia Haas Cynthia Haas Lisa Irvine 3. MiraCosta College's Community Service and Business Development Department would like to share expertise, time, ideas, and effort to accomplish new goals for the city. - MiraCosta will be starting a new Solar, Wind, and Telecommunications accelerated training program that has Workforce Investment Act (WIA) funding to cover tuition. So, please include MiraCosta in any clean technology business incubator programs. 4. Participate as a team player, putting North County's interests ahead of their own interests; this is what we would ask all local entities to do or it won't work. Fees: 1.Consider reducing or waiving the business license fee for a year. receive $1.7 million dollars from the Federal Government via SANDAG for Infrastructure. Also the City will receive $938,000 in Energy Efficiency Grants, and $135,549 in additional Federal CDBG grants from the stimulus package. We anticipate additional funds, especially in the Renewable energy and environmental areas will be-available over the next year. If the City Council wishes to pursue the incubator idea, staff can collaborate with a "vendor" or local colleges and universities to help develop program services which could be provided to participants. The City participates in San Diego Economic Development Corporation, San Diego North EDC, and Sandag special county-wide teams and committees on regional issues. Business License fees generate approximately $3.5 million annually in General Fund revenue. The Carlsbad Municipal Code requires all businesses working within the City limits to pay business license fees. A change in the ordinance would be required to lower or waive fees. This process would require the announcement and adoption of the change in the ordinance. The approximate time for this public process is six - eight weeks. Any reduction in the fees would Sandra Holder & Glenn Pruim Glenn Pruim Lisa Irvine Lisa Irvine Cynthia Haas 2. Implement an ordinance to defer Development Impact Fees for all development projects to Close of Escrow or Certificate of Occupancy. 3. Implement "Option C" of the Traffic Impact Fee program and reduce the cost estimates of the TIF Project List based on reductions in construction cost indexes. 4. Implement a minimum three-year moratorium on fee increases. 5. Do not create or adopt new fee programs. 6. An analysis of what is required to get companies to move here should be a part of the planning/strategizing effort. a. Look at the long-term economic contribution of these companies vs. short-term flexibility on fees to get them here. require a corresponding reduction in General Fund expenditures to maintain a balanced budget. Approximately 84% of the businesses are paying $100 or less for their business license. Several ordinances requiring the payment of fees would need to be amended. Procedures would also need to be modified to ensure fees are collected. (See attachment) Staff will be bringing the TiF program back to Council in the near future and will discuss options at that time, Many of the fees include a cost of living adjustment to heip align the fee with the cost of providing the service. A moratorium would reduce the City's ability to be reimbursed for providing services creating a further strain on the General Fund which is already impacted by the economic recession. The City already plans to minimize any increases to the cost of providing services which will help keep fee increases to a minimum. New fee programs are proposed to ensure that the City is reimbursed for providing specialized services. In light of the economy, new fee programs will likely be kept at a minimum. This type of analysis could be conducted based on the specific industry needs and community benefits (attraction of clusters) or it could be addressed on a case by case basis to tailor a specific Sandra Holder & Glenn Pruim (Items #1- 7) Regulatory Process: 1. Expedite all project in the permit system. 2. Offer to streamline the process of a company moving into Carlsbad, occupying a building, etc. Make it faster and easier. Reduce/eliminate red tape, bureaucracy. 3. Establish, record and report cycle times and performance metrics for permit processing and CEQA review to identify Permit Process Reform Measures to reduce processing timelines. 4. Limit plan checks to a maximum of three reviews and establish a goal of two reviews. Ensure a complete review on the first plan check. 5. Extend approved building permits for a minimum of two years and waive fees on permit extensions. 6. Support state legislation to automatically extend approved tentative maps for five years and extend tentative maps, land use entitlements and improvement agreements for a minimum of five years. 7. Implement an ordinance to automatically toll the life of all land use entitlements for attraction strategy to a particular company { similar to Golf Industry/Legoland strategies in the past). The new Economic Strategic Plan will identify industry clusters that could be beneficial to Carlsbad's business base. All projects are processed as quickly as possible. Projects identified as a priority are expedited. The Development Review Team reviews priority projects on a regular basis. This is currently done (e.g. Annual Facilities Permit, Preliminary Review Process, and early plan check) The Planning, Building, and Land- Use Engineering Departments utilize a tracking system to record this information and provide data for a performance measure. Fire Prevention is currently undergoing an audit by CityGate. Engineering goal is three pianchecks plus rnyiar. Staff is currently averaging two pianchecks plus mylar. Building permits and plan checks are not being automatically expired. Letters are sent to applicants and extensions are granted upon written requests. The City does not lobby for state legislation, but would implement any automatic extensions granted by the state. State law and the Carlsbad Municipal Code currently provide 8 Glenn Pruim Sandra Holders Glenn Pruim Glenn Pruim Sandra Holder & Glenn Pruim projects that are subject to legal challenges. 8. In the event of Level 3 Drought Restrictions, allow projects to proceed with construction and protect project entitlements by implementing the following water demand offset policy for new development: a. Exempt projects that are consistent with an approved Urban Water Management Plan b. Waive water capacity for projects which offset their water demand as these projects do not create a net increase for water or capacity for water c. Toll entitled projects that do not proceed with construction and water demand offsets. 9. Implement Permit Process Reform Measures that reduce the permit process cycle times. 10. Allow tentative parcel maps and tracts maps to have an initial approval of three years instead of two years as allowed per Subdivision Map Act Section 66452.6.(a)(1). a. The cost to prepare and process a - tentative map costs the property owner tens of thousands of dollars. b. This will also reduce the amount of staff time needed to process some of the map extensions. 11 .Allow tentative parcel maps and tracts maps to receive extensions of two years or more, as allowed per Subdivision Map Act Section 66452.6.(e), instead of one year. a. The cost to prepare and process a tentative map extension can exceed $10,000 and take 3-9 months or more for tolling of projects. Public Works is currently working on Drought Restriction details, which will be brought back to Council for review. Staff has increased management oversight and coordination of projects. The newly formed Development Review Team also considers actions to improve the efficiency of the process, (See attached CityGate Implementation Plan) Would require code amendment (Title 20) Code allows for extensions, and extensions of more than one year are allowed on a case-by-case basis Sandra Holder Glenn Pruim Sandra Holder of additional carrying cost on the property. b. This will also reduce the amount of staff time needed to process some of the map extensions. 12. Allow other discretionary approvals to have 2-3 years to obtain building permits prior to discretionary approvals expiring instead of the current practice of 12-18 months. a. The cost to prepare and process new discretionary approvals can exceed $10,000 and take 3-9 months or more of additional carrying cost on the property. b. This will reduce the amount of staff time needed to process some of the discretionary permits 13. When discretionary permit applications are made, certain engineering studies for drainage and storm water requirements must be prepared and submitted. When extensions of those permits are applied for, city staff is currently requiring that those studies be redone at considerable expense ($5,000 - $10,000+). Those same studies must be done again with the submittal of a grading permit application and may also be required again prior to building permit issuance. The State pollution control requirements can be compiled with without these studies being required and updated that many times. Direct staff to eliminate as many of these redundant requirements (and expenses) as possible. This will also reduce staff time needed for those multiple reviews of the studies. 14. The Development Services departments have an unwritten policy of responding to application resubmittals within 30 days. Many applications take that full 30 days and some take longer. Direct the staff to strive for responses within 20 days and in no case greater than 30 days. Staff has recently been more conscious of this time frame and has been working with the applicant during the approval process to give them a time frame they are more comfortable with. Staff has also been giving extensions. This can be discussed in a forum- with developers' consultants. The discretionary studies can be used for final design, if they are done to sufficient detail. We allow preliminary studies, which don't include all the details, to be submitted with discretionary applications to save the developers time and money. There are cases where the studies have been done to a sufficient level of detail that they can be used for final design. The Planning Department's practice is to not exceed a maximum of 30 days in compliance with the Permit Streamlining Act. Project review times are dependent on numerous factors related to the project's complexity and responsiveness of 10 Sandra Holders Glenn Pruim Sandra Holder & Don Neu (Items #1-2) Sandra Holders Don Neu (Items #1-5) 15. A significant amount of detailed design work is required with the submittal of discretionary permit applications. Much of this is useful for the decision makers. However, some of the details do not add information that is significant. Direct the Development Services staff to work with the business community to streamline the level of details being required. This can eliminate thousands of dollars and months of processing time. This will also allow the staff to reduce the amount of time they need to process the applications. Reduce CEQA Timelines: 1. Create a Master EIR with the General Plan Update that individual projects can tier off of to reduce the need for expensive, time- consuming and redundant environmental documentation. 2. Shorten CEQA determination timelines. Facilitate Infill and Smart Growth Development: 1. Increase planned densities with the General Plan Update and adopt or amend development standards that enable projects to achieve the upper end of General Plan densities. Ensure land is zoned for long-term future growth needs. 2. In accordance with smart growth principles, maintain and increase planned urban densities and building heights in areas planned for infill and smart growth development (Carlsbad Village Area). 3. Pursue community-wide parking reform measures in parking-impacted communities including the creation of parking districts, shared parking and offsite public parking alternatives. the applicant. The level of detail required was developed over time to respond to concerns raised by citizens, Planning Commissioners and the City Council. The information required assures that all parties have a common understanding of what is being approved and will ultimately be constructed. Reducing the level of detail provided to the decision makers will result in increasing the discretion of staff. A Program EIR will likely be completed for the G.P.. Update program and would create the possibility for tiering of future env. documents. Staff works to complete CEQA determinations within state mandated timeframes. The information is also tracked. Items 1 and 2 will be considered as part of the General Plan Update Program or have been included in either revisions to the Village Design Manual or Planned Development Ordinance Update. items 3 and 4 will be considered as part of the update to the Zoning Ordinance. 11 Debbie Fountain (Items #1-3) Cynthia Haas 4. Implement more flexible parking standards for infill and smart growth development to drive demand for transit and alternative transportation modes and waive parking requirements for onsite affordable housing units. 5. Allow private tandem car garage parking with multi-family residential units and reduce guest/visitor parking requirements for mixed- use and transit-oriented development projects. Affordable Housing Subsidies/Incentives: 1. Support the establishment of a permanent statewide funding source for affordable and workforce housing. 2. Provide city-owned land for affordable housing sites. 3. Allow for offsite construction of affordable housing units and allow different market-rate projects to consolidate their affordable units into one affordable housing project. Misc. 1. Support green businesses/business incubator Tandem parking is allowed in certain situations by the new Planned Development Ordinance. Additional code amendments will be required to expand the use of tandem parking which can be further discussed in the Zoning Ordinance Update. Efforts are being made through a variety of affordable housing advocate lobbying groups to establish this type of fund. The City supports these efforts. There is very little city-owned land which is appropriate for affordable housing. However, the City does purchase property when appropriate and provide for affordable housing. This is already permitted per the inclusionary ordinance. Several developments have satisfied their affordable housing requirements off-site, and some have consolidated into a single project (i.e., Laurel Tree). Every solution is handled on a case-by-case basis. Successful incubator programs have been researched by staff. Staff can develop a recommendation upon direction by the Council to move forward with an incubator project. 12 Lisa Irvine NCTD (not staff) Glenn Pruim Cynthia Haas Kristina Ray Chief Zoll& Lisa Irvine Jim Elliott 2. Keep police presence at malls - friendly (but firm) 3. Lack of bus stops along Aviara Parkway (NCTD) 4. Set a tractor down on our precious beach. A little grooming will go a long way in greeting our guests. 5. Group of North County leaders go to the San Francisco Bay Area for a week visiting CEO/CFO/Board's of companies, inviting them down. From the moment they arrive, the executives and their families would be "wined, dined and loved" with the most gracious and sincere hospitality. When they move here, the employees that move with them would similarly receive special treatment (special mortgage deals, special discounts, etc.). The entire community would participate in welcoming them and local North County prosperity they bring long term. 6. Better use of Citizens Academy grads 7. Use traffic control officers vs. sworn 8. Encourage more Comprehensive Employment and Training Act (CETA) programs The City plans to maintain the police presence at the mails. N/A The beaches in Carlsbad are owned and maintained by the State. It's likely that environmental review would be required for daily grooming. A variation of this idea has been employed in the past (Titieist Goif/Legoland) by the City Council once a company of significance has indicated a strong interest in Carlsbad. If this effort were to be enhanced or expanded to include a more proactive approach it would potentially require significant participation on the part of the City Council, staff and other business leaders and organizations. As part of the citywide Communications Plan, staff has been developing methods for ongoing participation and engagement for Citizens Academy grads. The City continues to explore ways to best utilize its resources in an efficient and effective manner. The CETA program, which began in the early 1970s, was a block grant program used by the Federal Government to fund back-to-work programs throughout the country. CETA's primary goals were to put people to work and to provide training that would enable people to gain permanent 13 employment. Staff is not aware of any CETA-type programs that are in place at this time on the federal or state level. If the Council would like to have Carlsbad establish a local grant program that would put people into jobs, they may direct staff to investigate how such a program might be developed, the cost of the program, possible funding sources, the role of business and the community in creating such a program, and the expected results. 14 •J August 4, 2008 TO: CITY MANAGER VIA: Community Development Director FROM: Planning Director BUILDING INDUSTRY ASSOCIATION REQUEST REGARDING IMPACT FEES The Building Industry Association (81 A) sent a letter dated June 13, 2008 transmitting a declaration adopted by their Board of Directors seeking regulatory relief from local government. A copy of the letter with exhibits is attached. The declaration lists five principles the BIA has relative to development impact fees required by local government. In general, the BIA principles are in response to the many factors relating to cost that are confronting the building industry. The purpose of this memo is to provide staffs response to the principles listed in the declaration. The following is a listing of each of the BIA principles and the staff response: a) To prevail upon all governmental agencies to refrain from increasing any fees, borne by new development for an indefinite period. (An exception for previously determined TransNet Regional Transportation Fees). Staff recognizes the financial challenges faced by the development industry in today's economy. The City faces some of the same issues such as increased material and labor costs for the construction of municipal projects. Development fees assessed by the City of Carlsbad are necessary to fund infrastructure required to serve new development and to achieve compliance with the growth management plan. Many of the city's impact fees are adjusted annually to keep pace with construction costs. Were fees not increased to keep pace with construction costs, another source of revenue would need to be identified to fill the shortfall between the cost of the facilities and the fee generation amounts. The City has had a long standing policy that development pay its' own way. Underfunding our fee programs by refraining from increasing fees would shift the financial burden from new development to existing development. The TransNet Regional Transportation fee is required by the TransNet Extension Ordinance. The Ordinance required that on July 1, 2008 every agency had to collect $2,000 per residential unit. The fee is required to help fund the needed improvements to the regional arterial system and reduce traffic congestion on our highways. A local agency must collect the $2,000 per unit fee in order to qualify for TransNet funds. b) To request local government agencies to suspend the adoption of new fees during this period of economic challenge. The BIA request is directed at not adding costs to a project. With current market conditions, project feasibility is greatly affected by any additional costs. The issue of whether to adopt new fees is dependent on how the City Council wishes to fund public facilities required for new development. As stated previously, the City's obligation to provide facilities is, in most cases, linked to new development by the growth management plan. c) The timing of payment of development fees should occur at the issuance of a certificate of occupancy for commercial properties or the close of escrow for residential properties commensurate with the actual impact to community services. The City currently requires the payment of fees at the time a permit is issued. Certain fees are required prior to the recordation of a final map, issuance of a grading permit, or issuance of a building permit. By requiring the fee at these various stages of the development process, the City is guaranteed that fees will be paid rather than deferring the collection of the fees to the end of the process when the city has less control of the developer. The City also does not have to be concerned about whether the developer set aside the funds to pay the fee should they encounter financial difficulties. The request to collect fees for residential projects at the close of escrow is very problematic. The City would somehow have to be inserted into the escrow process for each new residential unit and would likely face situations where home buyers were not aware that fees are due and possibly want to contest the amount of the required fees. The current timing of fee payment provides the City greater control and limits the number of transactions that have to occur to obtain the fees. d) BIA is prepared to serve as a resource and call upon local governments to diligently and thoroughly review all fees assessed to new development to ensure conformance with state taw, proper nexus and the appropriate or essential purpose of the funds expenditure. City staff works with the BIA in the adoption of new fees and annually provides information in response to a BIA survey comparing fees assessed by local agencies. The BIA is sent information on proposed fees for their review and comment. City staff and consultants ensure that there is a proper nexus for fees assessed to new development as required by Jaw, e) Upon review, any fees exceeding conformance with law shall be amended immediately. Further, any fees supporting services or capital improvement not necessary for the preservation of public health, safety and welfare shall be suspended. All fees adopted by the City are done in conformance with the law. Fees are based on a nexus between the impacts of new development and the funding required to mitigate those impacts by providing the necessary public facilities. Assembly Bill 2604 (Torrico) sponsored by the BIA has passed both houses and is enrolled and to the governor. The bill (in effect until January 1, 2012), if passed, would defer the payment of fees to the date the certificate of occupancy is issued. It allows an exception for a fee necessary to reimburse the jurisdiction for funds it has expended, or will expend within 1 2 months after issuing the residential building permit, for public facilities related to the residential development. Again, as stated in item (C) above, payment of fees at either escrow or certificate of occupancy is problematic not only from an administrative standpoint, but it also poses potential risks to the City. Please let me know if any additional information is needed on this subject. Community Development Director City Engineer Building & Code Enforcement Manager 9201 Spectrum Center Blvd., Suite 110 San Diego, CA 92123-1407 P 858.450.1221 F 858.552.1445 www.blasandlego.org PRESIDENT Sherman D. Harmer, Jr. Urban Housing Partners, Inc. VICE PRESIDENT Andrew Murphy American Property Enterprises TREASURER / SECRETARY Bob Cummlngs Barralt American IMMEDIATE PAST PRESIDENT Scott Brusseau Newport National Corporation CHIEF EXECUTIVE OFFICER Paul A. Tryon AFFILIATES California Building Industry Association National Association of Home Builders National Association of Industrial and Office Properties 20* June 13, 2008 Mr. Don Neu Planning Director City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Dear Mr. Neu: As we are all aware, the building industry Is experiencing considerable challenge. There are many contributing factors, none more fundamental to the San Diego region than cost. With the worldwide materials market driving up the cost of construction, combined with your jurisdiction's onerous fee structure (e.g. TIP, TUMF, DIP, Inclusionary Housing, Public Art, Parks, etc.) home builders - even if the land were to be provided at no cost to them - would not find it economically feasible to build new homes. The fee structure burden creates constraints on supply further exacerbating the San Diego County housing crisis. The burden is only made greater under our current payment methodology that assesses the fee at the time a building permit is obtained; in many cases months prior to any impact to community infrastructure or services. Please understand that under current market and lending conditions this "advance" payment has a serious impact on the cash flow of area builders. In consideration of these conditions, the Board of Directors of the Building Industry Association adopted the attached declaration seeking regulatory relief from local government. Specifically, we are requesting that no new fees be adopted or existing fees increased during this time. Further, as a commitment to economic stimulus we prevail upon local governments to amend the timing of the payment of fees to close of escrow for residential properties or the-issuance of a certificate of occupancy for commercial properties. These measures are being broadly adopted by jurisdictions throughout California as a legitimate and meaningful strategy that helps stabilize a vital industry while sustaining our mutual commitment to the provision of community infrastructure. For your convenience, we have attached a summary list of jurisdictions that have adopted fee relief policies. Your consideration of our resolution is appreciated. We look forward to working together to implement its principles. Sin Paul A. Tryon Chief Executive Oi BUILDING INDUSTRY ASSOCIATION OF SAN OIECO COUNTY 9201 Spectrum Center Blvd., Suite 110 San Diego, CA 92123-1407 P 858.450.1221 F 858.552.1445 www.biasandiego.org PRESIDENT Sherman D. Harmer, Jr. Urban Housing Partners, Inc. VICE PRESIDENT Andrew Murphy Building Industry Association of San Diego County May 22, 2008 Development Fees Declaration of Principles WHEREAS, the health and vitality of the building industry is of great significance to the social and economic well-being of the San Diego region; and WHEREAS, cumulatively the local building industry employs 140,000 people and collectively is responsible for 12% of San Diego County's gross regional product; and American property Enterprises WHEREAS, the building industry is suffering an acute and prolonged economical downturn; and TREASURER / SECRETARY Bob Cummings Barratt American IMMEDIATE PAST PRESIDENT Scott Brusseau Newport National Corporation CHIEF EXECUTIVE OFFICER Paul A. Tryon AFFILIATES California Building Industry Association National Association of Home Builders National Association of Industrial and Office Properties WHEREAS, the issuance of building permits and the sale of new homes in the San Diego region are at record lows; and WHEREAS, development agencies assert a primary role in the regulation of housing and its attendant cost; and WHEREAS, government has the opportunity and responsibility to promote and enact policies to stimulate and sustain the economic vitality of the region; and WHEREAS, government fees and exactions have become the preferred method of financing public improvements including, but not limited to, transportation, parks, schools, water and sewer; and WHEREAS, the effect of fees and exactions represent a substantial and growing cost of a San Diego home and serve as a fundamental deterrent to consumers; and WHEREAS, the payment and collection of fees in advance of impact result in great economic burden to the industry; NOW, THEREFORE the Building Industry Association of San Diego does hereby • resolve as follows: a) To prevail upon all governmental agencies to refrain from increasing any fees borne by new development for an -indefinite period. (An exception for previously determined TransNet Regional Transportation Fees). b) To request local government agencies to suspend the adoption of new fees during this period of economic challenge. c) The timing of payment of development fees should occur at the issuance of a certificate of occupancy for commercial properties or the close of escrow for residential properties commensurate with the actual impact to community services. d) BIA is prepared to serve as a resource and call upon local governments to diligently and thoroughly review all fees assessed to new development to ensure conformance with state law, proper nexus and the appropriate or essential purpose of the funds expenditure. BUILDING INOUSTBY ASSOCIATION OF SAN DIEGO COUNTY e) Upon review, any fees exceeding conformance with law shall be amended immediately. Further, any fees supporting services or capital . Improvement not necessary for the preservation of public health, safety and welfare shall be suspended. This declaration of principle Industry-Association was adopted by the Board of Directors of the BuildingndDiego County on the 22 day of May, 2008. Paul A. Tryon Chief Executive O V 9201 Spectrum Center Blvd., Suite 110 San Diego, CA 92123-1407 P 858.450.1221 f 858.552.1445 www.biasandiego.org Fee Deferrals By Jurisdiction June 2008 PRESIDENT Sherman D. Harmer, Jr. Urban Housing Partners, Inc. VICE PRESIDENT Andrew Murphy American Property Enterprises TREASURER / SECRETARY Bob Cummings Barrett American IMMEDIATE PAST PRESIDENT Scott Brusseau Newport National Corporation CHIEF EXECUTIVE OFFICER Paul A. Tryon AFFILIATES California Building Industry Association National Association of Home Builders National Association of Industrial and Office Properties Counties Fresno County Imperial County Madera County Orange County Riverside County Tulare County Cities: Corona Parris Lake Ellsinore Hemet San Jacinto Orange Anaheim RoseviUe Banning Elk Grove Moreno Valley Palm Desert Riverside San Bernardino Victorville Ventura Fees Due Close Of Escrow Application For Certificate Of Occupancy/ Final Inspection Close Of Escrow W/Sewer & Water Fees Collected At Final Map Certificate Of Occupancy Application For Certificate Of Occupancy/ Final Inspection Certificate Of Occupancy/Final Inspection Fees Due Certificate Of Occupancy Certificate of Occupancy Certificate of Occupancy Certificate of Occupancy Certificate of Occupancy Certificate Of Occupancy Certificate Of Occupancy Close Of Escrow Certificate Of Occupancy Variable Certificate Of Occupancy Service Deposit Submittal Final Inspection Certificate Of Otcupancy Certificate Of Occupancy Certificate Of Occupancy BiA BUILDING INDUSTRY ASSOCIATION Of SAN DIECO COUNTY April 27, 2009 TO: CITY MANAGER VIA: COMMUNITY DEVELOPMENT DIRECTOR FROM: Senior Management Analyst, Planning Department WVr CITY GATE IMPLEMENTATION UPDATE On December 5, 2006, the City Council adopted a Development Review Process Action Plan prepared by CityGate Associates, which included twenty-seven (27) discrete recommendations for a series of improvements to the development review process in Community Development and Public Works. As of today's date twenty (20) of the recommendations have been implemented. The attached table provides a status report of what has been accomplished, what is in progress and estimated completion dates. If you have any questions regarding any of the completed or ongoing items, please do not hesitate to contact me. MICHELE MASTERSON SH:MM Attachment CITYGATE RECOMMENDATION Staffing and Reorganization II 1-1 Reorganize the Planning Department into Advanced & Current Planning 111*2 Position Changes - Planning Department Vl-l Create a new Development Services Division Vll-l Fill the vacant Senior Engineer and add to Associate Engineer positions VI 1-4 Transfer grading permit violations to Construction Management General Plan/Local Program Update HI-3 Conduct a comprehensive update of the Carlsbad General Plan & Local Coastal '. Program Zone Code Update 111-4 Conduct a comprehensive update of the City's Zoning Code Customer Service Information HI-5 Review & revise all customer handouts STATUS Implemented Implemented Implemented Implemented Implemented Ongoing Ongoing Implemented COMMENTS Reorganized in 2006 Received additional staffing, changed Principal Planner position to Senior Planner and moved to Current Planning, filled vacant Associate Planner in Advanced Planning and created a Junior Planner position. Created a Development Services Division and hired a Development Services Manager. Engineering hired a Senior Gvil Engineer in 2008 and two Associate Engineers were hired in 2007. Engineering determined this would not streamline the process. Initiated Envision Carlsbad, which is part of Phase 1 of the General Plan & Local Coastal Program Update Program. Initiated Envision Carlsbad, which is part of Phase 1 of the Zone Code Program Update Program. Management Goal - Public Information Update- Revised and updated printed material available at the public service counter including all informational bulletins and construction details and standards. Iof4 CITYGATE RECOMMENDATION VI-2 Review & update information sheets 111-6 Rewrite the Planning Review form VH-2 Rewrite the Engineering Review form VI-3 Provide information "kiosk" Project Management/Tracking Performance Measures II 1-7 Adopt a Case Management Approach II 1-8 Create a Development Review Team 111-9 Log and track alt activities to set performance standard 111-10 Institute an "Unanticipated Service" program 111-11 Hold staff accountable to meet cycle times, standards, such as returning telephone calls within 24 hours STATUS Implemented Implemented In Process Being Evaluated Implemented Implemented Implemented In Process Implemented COMMENTS Management Goal - Public Information Update- Revised and updated printed material available at the public service counter including all informational bulletins and construction details and standards. Created a Word template to be used for building planchecks and stored electronically which can be accessed by all departments. Estimated completion date 12/09. Due to current budget constraints, this recommendation is on hold. Planners are actively involved in managing and supporting the processing of their assigned applications. The Development Review Team (DRT) was created in 2008. The team consists of Planning, Building, Engineering, and Fire representatives and meets monthly. The Planning Department utilizes a tracking system to record activities to provide data for performances measurements. Staff is exploring various avenues to incorporate this program. Estimated completion date FY 09-10. "Best Practice" processing cycle-time standards have been established and incorporated into the tracking system. In 2 of 4 CITYGATE RECOMMENDATION VI-4 Establish an activity tracking system IX- 1 An automatic copy of Esgil comments should be sent to Fire Prevention X-2 Engineering and Building should follow Planning's example and hold "free the files days" Public Project Process Improvement/Consistency Determinations 111-12 & VII-3 Ensure City-generated projects meet the same standards that the City requires of developers Contract Service Quality Control & Monitoring 111-13 Monitor the quality of services provided by the contractors STATUS Implemented Implemented Implemented Implemented Implemented COMMENTS February 2008, guidelines were established for responding to email and telephone inquiries. The Planning Department utilizes a tracking system to record activities to provide data for performances measurements. The Development Services Manager met with the Fire Prevention staff and as a result, it was decided not to implement this recommendation. They felt that with additional training of the staff and better communication between the departments they could meet the intent of this recommendation. Completed in 2006 & 2007. City CIP projects now are required to be prepared through the Engineering Department rather than the supporting department to ensure quality control and to follow .proper procedures and processes during their development and review. Coordination with the Planning Department has been incorporated into all environmental reviews and permits. In 2006, the Planning Department hired a new landscape consultant to carry out the landscape plancheck and inspection 3 of 4 CITYGATE RECOMMENDATION VII-5 Provide more administrative support to track consulting contracts Technology/Development Services Information Systems Plan (DSISP) X-l Conduct a DSISP for the development services departments IV-1 Once a DSISP has been conducted, provide inspectors with computers or PDAs to log information to instantly update the permitting system IV-2 As part of the DSISP, include a means by which inspections may be scheduled, applications with fees can be submitted, and digital versions of plans can be submitted online X-3 Conduct additional training for staff using Accela and PermitsPlus to indentify ways the staff can make the greatest use of this technology's potential STATUS Implemented Implemented On Hold On Hold Implemented COMMENTS services. The Planning Department instituted controls to monitor the quality of services, such as having all requests for a site visit be scheduled through the Planning Department rather than requests going directly to the contractor. In this way, the turnaround time from request for inspection to service can be logged and monitored. In 2006, a Contract Administrator series was adopted by City Council. Management Goal - In 2007, a multi- departmental team created a Development Services Information System Plan to improve service delivery. This DSISP was completed in May 2008. This specific recommendation will be reviewed as part of an overall implementation strategy. This DSISP was completed in May 2008. This specific recommendation will be reviewed as part of an overall implementation strategy. PermitsPlus training is offered to staff throughout the year. 4 of 4 CITY OF CARLSBAD J3ENERAL FUND Key Revenue Asssumptions Base Assessed Value Sales Tax Growth Rate (Base) Transient Occupancy Growth Rate (Base) Key Expenditure Assumptions COLA/Step Increases: General Safety PERS Rates: General Safety Health Insurance Growth Rate New Positions Expenditure Index (M&O Growth) •JO Year Financial Forecast Summary -cZ&'OT 4/24/2009 Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2.5% -5.4% -13.0% 3.2% 4.4% 27.8% 37.6% 5.0% 3 3.8% 0.5% -10.7% -5.0% 2.8% 3.0% 28.2% 39.3% 5.0% 0 1.0% -2.0% 0.0% 0.0% 1.5% 0.5% 28.2% 39.1% 5.0% 0 1.0% 2.0% 2.0% 2.5% 0.5% 0.5% 33.2% 49.9% 5.0% 0 2.0% 4.5% 4.0% 3.5% 1.0% 1.0% 33.2% 49.9% 5.0% 4 3.0% 5.0% 4.5% 3.5% 2.0% 2.0% 33.2% 49.9% 5.0% 9 3.5% 5.0% 4.5% 3.5% 3.0% 3.0% 33.2% 49.9% 5.0% 9 3.4% 5.0% 4.5% 3.5% 3.5% 3.5% 33.2% 49.9% 5.0% 9 3.7% 5.0% 5.0% 3.5% 3.5% 3.5% 33.2% 49.9% 5.0% 9 3.8% 5.0% . 5.0% 3.5% 3.5% 3.5% 33.2% 49.9% 5.0% 9 3.5% Assumed Reductions Personnel Maintenance and Operations Infrastructure Replacement (6.5% of Rev.) Council Contingency Goal Capital TOTAL REDUCTIONS ($1,028) ($3,000) ($250) ($1,000) ($5,278) ($1,024) ($3,316) ($120) ($40) ($4.500) DRAFT 4/24/2009 City of Carlsbad DRAFT 4/24/2009 * ^General Fund IKbVtNUbb | Total Revenues (EXPENDITURES | BASE: Goals One-time Capital outlay Contingency: Transfers Hosp Grove Infrastructure replmnt (6.5%) Misc xfers Total Base ADDITIONAL BUDGET ITEMS: Additional Requests New Facilities Civic Center (net of vacated facilities) Public Works Center Joint First Responders Training Facility Aviara Park Comm Ctr Alga Norte Park Alga Norte Aquatic Complex Alga Norte Fees (Park and Aquatic Complex) Pine Park Comm Ctr Poinsettia Park-Phase 2 Leo Carrillo Park Phase 3 and Bam Veteran's Memorial Park Library Expansion Robertson Ranch Park Business Park (Zone 5) (TOTAL EXPENDITURES I (REVENUES OVER (UNDER) EXP I Actual 2006-07 123,170 15% 123,170 97,788 8.8% 4 3,325 1,802 275 7,200 4,845 115,237 115,237 17% 7,933 Actual 2007-08 119,837 -2.7% 119,837 f05,792 8.2% 0 3,307 1,293 275 7,900 139 118,706 3.0% 118,706 3% 1,131 Budget (Rev) 2008-09 116,159 -3.1% 116,159 103,794 -1.9% 170 90 1,300 90 7,550 112,994 -4.8% 112,994 -5% 3,165 Projected 2009-10 110,653 -4.7% 110,653 101,249 -2.5% 0 1,300 7,192 177 109,918 | -2.7% 109,918 -3% 735 I Projected 2010-11 110,772 0.754 110,772 102,324 1.1% 50 50 1,300 7,200 110,925 0.9% 110,925 1% (152)1 Projected 2011-12 115,740 4.5% 115,740 107,797 5.3% 100 100 1,700 7,523 117,220 5.7% 117,220 6% (1,480)1 Projected 2012-13 123,545 6.7% 123,545 109,890 1.9% 100 250 2,000 8,030 120,271 2.6% 422 820 1,540 (1,160) 121,893 4% 1,653 | Projected 2013-14 127,810 3.5% 127,810 113,564 3.3% 200 500 2,300 8,308 124,871 3.8% 404 437 849 1,594 (1,195) 333 127,294 4% 517 | Projected 2014-15 136,149 6.5% 136,149 118,110 4.0% 350 1,000 2,300 8,850 130,609 4.6% 970 418 452 878 1,649 (1,231) 464 344 134,554 6% 1,595 | Projected 2015-16 144,657 6.2% 144.657 123,327 4.4% 350 1,000 2,300 9,403 136,380 4.4% 1,006 433 469 911 1,710 (1,268) 481 357 140,480 4% 4,177 | Projected 2016-17 + 152,815 5.6% 152,815 128,810 4.4% 350 1,000 2,300 9,933 142,393 4.4% 1,044 450 487 945 1,775 (1,306) 500 371 146,659 4% 6,156 | Projected 2017-18 160,567 5,1% 160,567 134,442 4.4% 350 1,000 2,300 10,437 148,529 4.3% 1,081 466 503 978 1,837 (1,345) 517 384 751 • 153,701 5% 6,865 Percent of Budget 7%1%3%1%0%-1%1%0%1%3%4% Expenditure Reductions Infrastructure Replacement Incentive Pay/Salaries Capital Outlay Goals Council Contingency Expenditure Reductions Total (3,647) (250) (381) (1,000) (5,278) (4,086) (254) (40) (120) (4,500) 4% DRAFT City of Carlsbad DRAFT 4/24/2009 GENERAL FUND BALANCE (unreserved, undeslanated) Fiscal Year Ending Beginning VLF payback or State action Loan from PIL-sw for Poinsettia Retiree Health Care Trust Advance to SCCRDA LLD #1 Advance Golf Course Operations Advance Carryforwards/Changes in Encumbrances Rev over exp at % of bdgt Public Safety Training Center Ending fund balance 30% of budget Average fund balance Change In Ave fund balance 2009-10 47,558 (4,000) (196) (190) (1,600) 735 42.307 44,933 -4.0% 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 I 2017-18 42,307 (205) (340) (1,600) (152) 40,010 (215) (506) (900) (1,480) 36,909 4,000 (221) (665) (500) 1,653 41,175 (228) (834) 517 40,630 (235) (919) 1,595 41,071 (242) (1,006) 4,177 44,000 (1,097) 44,000 (1,191) 6,156 6,865 40.010 36.909 41.175 40.630 41.071 44.000 49.059 49.675 41,159 -8.4% 38,459 -6.6% 39,042 1.5% 40,903 4.8% 40,851 -0.1% 42,315 3.5% 45,065 10.3% 46,837 tO. 7% I Revenues over (under) Expenditures - RCVOTUM over {und«f) ExfMndlhjfM Primary Changes from June 2008 Forecast Retirement costs based on CALPERS' projected losses in FY 2009 Reduced Council Contingency by $1.0m in FY 2009, FY 2010 and FY 2011 Reduced Capital Outlay and Goals to Help Balance Forecast Eliminate VLF in FY 2009 and 2010 Updated operating costs for Alga Norte and JFRTF Advance to South Coast Redevelopment Agency Advance to LLD#1 updated Moved Public Works Center out two years to FY 2014 Moved Joint First Responders Training Facility out two years to FY 2013 Moved Alga Norte Park and Aquatic Complex out one year to FY 2013 Moved Leo Carrillo Park Phase 3 out two years to FY 2014 DRAFT COPY 4/28/2009 TEN YEAR FINANCIAL FORECAST General Fund April 28, 2009 10-Year Forecast > Forecast currently assumes three year recession with slow economic recovery beginning in FY 2012 > Revenue assumptions are fairly conservative 4/28/2009 Base Growth Assumptions Assessed Values Sales Tax Transient Occupancy Tax FY 2008-09 2.5% -5.4% -13% FY 2009-10 0.5% -10.7% -5.0% FY 201 0-11 -2.0% 0.0% 0.0% FY 2011 -12 2.0% 2.0% 2.5% 10-Year Forecast > No new position growth assumed until FY 2013 > No additional salary increases assumed until FY 2013 (unless already negotiated) > The 10-Year Forecast is projecting budget deficits over the next several years with expenditure reductions in FY 2009 and FY 2010 already reflected in forecast 4/28/2009 General Fund Expenditures $ Thousands FY 2008-09 > In developing the budget, expenditures were kept nearly flat with a 0.3% decrease from the prior year expenditures > 3 positions were added primarily due to new facilities opening that year 4/28/2009 FY 2008-09 Midyear > In January 2009, due to the economic recession, Council approved the following: • $4.5 million reduction in General Fund revenue projections . $5.3 million reduction in General Fund operating expenditures . 3.5 positions were unfunded as well FY 2009-10 > During the budget development process expenditure reductions of $4 - $4.5 million are being considered > Approximately 10 positions are anticipated to be unfunded > This is in addition to the 3.5 positions midyear FY 2009 and over 14 positions frozen during FY 2009 4/28/2009 Operating Forecast General Fund 10 Year Financial Forecast z \ FY2006 FY 2007 FY 20W FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 9 10-Year Forecast Significant Changes > Moved Alga Norte Park and Pool to FY 2013 > Moved Leo Carrillo Phase III and Barn to FY2014 > Revised Assessed Value Growth FY 2010 to 0.5% > Updated subsidy estimates for Lighting and Landscaping District #1 10 4/28/2009 Next Steps > Balance FY 2009-10 > Continue Selective Hiring Freeze > Innovations/Efficiencies > No Plan to Use Reserves for Operating Expenditures > Continue to monitor economy and actions taken by Federal and State governments Questions 12 VILLAGE H UPDATE COPY Neighborhood News CITY OF CARLSBAD April 2009 The City of Carlsbad wants to let you know about an issue of interest to residents of Calavera Hills and surrounding neighborhoods. A piece of private property known as Village H, including an area on the corner of Carlsbad Village Drive and Victoria Avenue, was sold in April to the Thompson Corp. For legal reasons, the new property owner has put up fences and no trespassing signs, causing concern among some residents who want to continue to use a trail on the property and preserve the land as open space. The city decided not to buy the land when it was for sale since purchasing the property would not significantly add open space to the city — more than 94 percent of the site is already set aside as open space, regardless of who owns it. Property history Although the city does not own this property, it does control the future use of the land through zoning and other land use laws. Since the city has heard concerns from some local residents, we have prepared this informational flyer. In 2006, the property was nominated for city acquisition to the Proposition C Open Space Committee by both the previous property owner (Calavera Hills II LLC) and neighbors. Based upon the information received and the approved ranking criteria, the property was ranked second in the Open Space Committee list of potential property acquisitions. The Carlsbad City Council considered purchasing the property at a closed session meeting in early 2008 (discussions about possible real estate acquisitions are conducted in closed session, in accordance with the Brown Act). What about the trail? property is identified in the citywide trail master plan as a future city trail, but currently it is not part of the citywide trail system. Although the new property owner is putting up signs and fencing, that does not mean the public will not have access to a trail on the property in the future. The City of Carlsbad will work with the new property owner to determine when and how the trail on the property could once again be made accessible to the public. The city declined the offer from Calavera Hills II LLC at that time since purchasing the property would not significantly add open space to the city (more than 94 percent of the site is already set aside as open space). Preservation of the entire southern portion of the property for Habitat Management Plan open space would necessitate confining public access to the future trail alignment along the western edge of the property, removal of non-native invasive species (including many of the eucalyptus trees), and revegetation of the site zoned for community facilities with native plantings. Continued on side 2 City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Neighborhood News VILLAGE H UPDATE What will happen to the property The ultimate development of the property must be consistent with the existing master plan and zoning for the area: • The northern portion of Village H is already included in the city's Habitat Management Plan Hardline Preserve and under a conservation easement for open space preservation and management in perpetuity to the Center for Natural Lands Management. • South of Carlsbad Village Drive is a mixture of uses and zoning: The only development that may occur on the property is a community facilities land use (such as a daycare, place of worship, or senior center) on the 3.2 acre site south of Carlsbad Village Drive. 2.3 acre existing Calavera Hills Master HOA RV storage area. 18.5 acres of master plan open space, containing some native habitat eucalyptus trees and non-native grasses. Existing master plan trail and future citywide trail. North CITY OF ^ CARLSBAD For more information, contact Mike Grim at (760) 602-4623.