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HomeMy WebLinkAbout2024-05-23; Permit-Ready Accessory Dwelling Units Program Status Update (Districts - All); Murphy, JeffTo the members of the: _s_l"!}_ COUNCIL Date~CA v cc .::::- CM .:::::::.. ACM-=::. DCM (3) ~ May 23, 2024 Council Memorandum To: From: Honorable Mayor Blackburn and Members of the City Council Jeff Murphy, Community Development Director Via: Gary Barberio, Deputy City Manager Geoff Patnoe, Assistant City Manager ~ {city of Carlsbad Memo ID# 2024039 Re: Permit-Ready Accessory Dwelling Units Program Status Update (Districts -All) Pursuant to City Council direction, this memorandum is a report on the public utilization and interest in the city's Permit-Ready Accessory Dwelling Units (ADUs) Program, one year from its May 2023 launch. Background In accordance with City of Carlsbad Housing Element Program 1.2 -Promote the Development of Accessory Dwelling Units (ADUs), which was approved by City Council on April 6, 2021, (Attachment A), staff prepared pre-approved building plans for detached one-story accessory dwelling units as part of the city's first Permit-Ready ADU Program. A set of four pre-approved ADU floorplans were developed for different unit sizes, including studio, one-bedroom, two-bedroom, and three-bedroom units. The plans range in size from 400 to 1,000 square feet and are available in three architectural styles (Spanish, Farmhouse and Modern) to complement existing architectural styles found throughout the city. Applicants making use of the permit-ready ADU plans were estimated to save approximately three to six months in plan preparation time and between $8,000 -$16,000 in architectural design fees prior to submitting a building permit application. Additionally, the use of the plans reduces staff and consultant review time. The plans were presented to the City Council at its May 23, 2023, meeting (Attachment B), where the City Council unanimously approved the plans and associated ordinance amendments. Following City Council action, Council Member Luna made a minute motion, seconded by Council Member Acosta, directing staff to report back to the City Council within one year on the following items (Attachment C): • Number of off the shelf accessory dwelling units built • Neighborhood comments or complaints • Length of the approval process • Costs of units • Recommendations to encourage use This City Council memorandum responds to City Council direction. Community Service Branch Community Development Department 1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2600 t Council Memo -Permit-Ready Accessory Dwelling Unit Program Update May 23, 2024 Page 2 Discussion Staff's response to the five requested items are provided below. 1. Number of units built using the permit-ready ADU plans Currently, only one building permit application has been submitted using the permit-ready ADU plans (specifically, the floorplan for the 1,000 square foot/three-bedroom ADU with a Spanish architectural style). Staff does not believe that this lack of use is due to a lack of awareness. Following City Council approval in May 2023, city staff promoted awareness of the new program through several venues: • A news release posted on the city's website • A dedicated program web page, which has been visited 5,700 times to date • Emails to more than 100 residents who gave public input during the development.of the Permit-Ready ADU Program • Promotion in the City Manager's Update email, reaching over 10,000 residents • Posts on social media reaching between 1,300 and 1,700 followers City staff have also fielded a steady number of email and phone inquiries about the program since it was launched. On average, staff at the building and planning front counter receive roughly one to two inquiries a week, and the project manager receives two to three email or phone inquiries weekly. These inquiries span various topics, including questions about time and cost savings, accessing plans, allowable modifications and how to get started. Probably the biggest factor contributing to this low participation is that the pre-approved plans often do not meet the property owners' unique design interests. Property owners willing to invest in the construction of an ADU typically want to customize the floorplan and design to meet personal preferences. In other cases, the site may be constrained resulting in the need to modify the shape and orientation of the ADU in order for it to fit in a desired location. Any modifications or changes to the pre-approved plans must be reviewed and approved for compliance with state and local building code standards. While property owners may use components of the pre-approved plans for guidance, staff finds that most property owners opt to hire a professional to develop customized plans. 2. Neighborhood complaints/comments received No complaints or comments have been received since no ADUs under this program were constructed within the reporting period. 3. The length of the approval process The proposed ADU using the permit-ready ADU plans is not located in the Coastal Zone and, therefore, is only required to process a building permit application1. The application was submitted on April 1, 2024. Following review of the application, comments were provided to the applicant by April 18, 2024, which included the following: • The site plan which shows where the ADU will be located on the property was missing required information. 1 A Minor Coastal Development Permit is required for most ADU projects located in the Coastal Zone. Council Memo -Permit-Ready Accessory Dwelling Unit Program Update May 23, 2024 Page 3 • The application package was missing the required soils report, which is a document prepared by a soils engineer showing that the soil has been compacted properly to minimize foundation movement (i.e., cracks in the slab). This is a standard requirement for all habitable structures. • City code requires that a boundary survey be conducted for any new construction proposed less than five feet from the property line. This helps avoid disputes with neighboring property owners and ensures minimum fire setback standards are being met. • The applicant is required to prepare and submit a housing tracking form as required by the State of California to track new housing development for all income levels, as well as a notarized notice of restriction. The notice of restriction is a recorded document that states the approved ADU must comply with the ADU obligations and restrictions pursuant to state regulations and the rental period requirement of no less than 30 days pursuant to Carlsbad Municipal Code Section 21.10.030. The resubmitted documentation that addresses these comments is still pending from the applicant. It is anticipated that once the required documentation is submitted and complete, the permit can likely be approved. Pursuant to Government Code Section 66317, the city must either approve or deny the building permit application within 60 days after the application is deemed complete. If the application has not been approved or denied by the city within that timeframe, the permit application shall be deemed approved; however, applicants can request a delay to allow time for them to submit documentation for their permit application to be approved and not denied, as was in this case. The city's building plan check reviews average a two-week turnaround. A building plan check can be completed in two reviews during the 60-day review period. If the ADU is within the Coastal Zone and requires a minor coastal development permit (MCDP), the average turn around is 30 days, however, the MCDP may require one or two reviews before it's deemed complete. Once the MCDP is deemed complete, it is approved within the 60-day review period, concurrent with the associated building permit. Using the permit-ready ADU plans, and the corresponding Permit-Ready ADU Program checklist will help applicants receive approval of their ADU permit within the required timeframe or less. 4. Costs of Units The base construction valuation costs for all four permit-ready ADU plans are determined by the "dwellings" building valuation group and type "V" wood frame construction for residential structures pursuant to the most recent California Building Standards Code and are listed below: • Studio: 415 square feet= $72,894 • One bedroom: 680 square feet= $119,442 • Two bedrooms: 800 square feet= $140,520 • Three bedrooms: 1,000 square feet= $175,474 Council Memo -Permit-Ready Accessory Dwelling Unit Program Update May 23, 2024 Page 4 5. Other Recommendations: While staff does not believe a lack of awareness was a major contributing factor in the program's lack of use, more outreach could not hurt. As such, additional outreach is anticipated to start after July 1, 2024, and will include the following: • Engage with local industry associations representing real estate professionals, contractors and builders, including the North San Diego County Association of REALTORS®, Associated General Contractors of America-San Diego Chapter and Building Industry Association of San Diego to increase awareness among their members and request help sharing the information with their Carlsbad-based contacts. • Promote the program on city social media channels and Nextdoor. • Utilize the city's existing ad buy with Carlsbad Magazine to highlight the program in one of the magazine's issues. If additional program awareness is needed, future efforts could include a digital ad campaign; however, funding for such an effort is not included in the project's current budget. Next Steps Staff will continue to promote and bring awareness of the Permit-Ready ADU Program as reflected above. Also, consistent with recent state legislation (AB 1332), the permit-ready ADU plans must be updated every three years to ensure compliance with the most current state building code standards. The next update will occur soon after the 2025 triennial California Building Standards Code is released which is anticipated to occur in July 2025. This effort will need to be added to the Community Development Work Program for FY 2025-2026. It is anticipated it will cost roughly between $20,000-30,000 to hire a licensed architect to prepare the updated plans, which will be included in the FY2024-25 budget. Attachments: A. April 6, 2021, City Council staff report (on file with the City Clerk's Office) https://records.carlsbadca.gov/Weblink/DocView.aspx?id=5319278&dbid=0&repo=Cityo fCarlsbad B. May 23, 2023, City Council staff report (on file with the City Clerk's Office) https://records.carlsbadca.gov/Weblink/DocView.aspx?id=6419853&dbid=O&repo=Cityo fCarlsbad C. May 23, 2023, City Council Meeting Minutes cc: Scott Chadwick, City Manager Cindie McMahon, City Attorney Allegra Frost, Assistant City Attorney Eric Lardy, City Planner Robert Efird, Principal Planner Shelley Glennon, Associate Planner Tina Ray, Director of Communication & Engagement Natalie Reed, Community Engagement Manager Shaun Huff, Building Official Tim Kersch, Senior Building Inspector May 23, 2023 Carlsbad City Council Regular Meeting Page 2 CONSENT CALENDAR: Motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member Acosta, to approve Consent Calendar Item Nos. 1 through 5. Motion carried unanimously, 5/0. 1. AGREEMENT WITH GOFORTH & MARTI TO PROVIDE ADDITIONAL BUILDING FURNISHINGS FOR THE POLICE AND FIRE HEADQUARTERS RENOVATION PROJECT (CIP PROJECT NO. 4715) -Adoption of Resolution No. 2023-134 authorizing execution of an agreement with Goforth & Marti, a California Corporation, d.b.a. G/M Business Interiors, to provide additional building furnishings in an amount not to exceed $308,770 for the Police and Fire Headquarters Renovation Project, Capital Improvement Program Project No. 4715. {Staff contact: Steven Stewart, Public Works Department and Mickey Williams, Police Department) 2. AWARD OF CONTRACT TO GRANITE CONSTRUCTION COMPANY FOR SEGMENT 2 OF THE AVENIDA ENCINAS COASTAL RAIL TRAIL AND PEDESTRIAN IMPROVEMENTS PROJECT (CIP PROJECT NO. 6004) -Adoption of Resolution No. 2023-135 accepting bids and awarding a contract to Granite Construction Company for Segment 2 of the Avenida Encinas Coastal Rail Trail and Pedestrian Improvements, Capital Improvement Program Project No. 6004, in an amount not to exceed $2,994,036. (Staff contact: Brandon Miles and Hossein Ajideh, Public Works) 3. AWARD OF CONTRACT HOUALLA ENTERPRISES LTD . FOR TH E EL FUERTE AND MAERKLE MOTORIZED VALVES PROJECT (CIP PROJECT NOS. 5007, 5009, 5050) -Adoption of a Carlsbad Municipal Water District Board of Directors Resolution No. 1705 accepting bids, denying the bid protest of the second lowest bidder and awarding a contract to Houalla Enterprises Ltd. dba Metro Builders and Engineers Group, Ltd . for the El Fuerte and Maerkle Motorized Valves Project Capital Improvement Project Nos. 5007, 5009 and 5050 in an amount not to exceed $2,310,955, and appropriating additional funds from the Water Replacement Fund t o Capital Improvement Program Project Nos. 5009 and 5050. (Staff contact: Dave Padilla and Sean Diaz, Public Works Department) 4. CONTINUATION OF THE DECLARATION OF A STORM -RELATED LOCAL EMERGENCY FOR REPAIR OF SINKHOLE ON HAYMAR DRIVE -Adoption of Resolution No. 2023-136 cont inuing the declaration of a storm-related local emergency for repair of a sinkhole in the area of Haymar Drive. (Staff contact: Tom Frank and Vicki Quiram, Public Works Department) 5. AGREEMENTS WITH SMARTSHEET, INC. FOR THE IMPLEMENTATION, LICENSING AND SUPPORT OF SMARTSHEET PORTFOLIO PROJECT MANAGEMENT SOFTWARE -1) Adoption of Resolution No. 2023-137 authorizing the purchase of additional software licenses pursuant to an existing license and support agreement with Smartsheet, Inc., for Smartsheet Portfolio Advance Silver with Enterprise Plan Plus Pro Support Licenses in an amount not to exceed $93,000 for the initial one-year term and authorizing the City May 23, 2023 Carlsbad City Council Regular Meeting Page 3 Manager to purchase four additional one-year license terms, for a total agreement amount not to exceed $493,749; and 2) Adoption of Adoption of Resolution No. 2023-138 authorizing the City Manager to execute an implementation services agreement with Smartsheet, Inc. for Smartsheet Portfolio Project Management Software in an amount not to exceed $49,140 with a $10,000 contingency. (Staff contact: Doug Kappel and Rachel Muller, Administrative Services Department) ORDI NANCES FOR INTRODUCTION: None. ORDINANCES FOR ADOPTION : None. PUBLIC HEARING: 6. ZONING ORDINANCE AMENDMENTS TO IMPLEMENT HOUSING ELEMENT PROGRAMS ON ALTERNATIVE HOUSING AND TEMPORARY HOUSING TO RELIEVE HOMELESSNESS (ZCA 2023-0002/LCPA 2023-0018 (DEV 2023-0040)) -1) Introduction of Ordinance No. CS-448 approving an amendment to the Zoning Ordinance, Title 21 of the Carlsbad Municipal Code, to implement a portion of Objective g of Housing Element Program 1.3 -Alternative Housing and Objective h of Housing Element Program 2.13 -Housing for Persons Experiencing Homelessness (Case Name: Alternative and Temporary Housing Amendments 2023; Case No.: ZCA 2023-0002/LCPA 2023-0018 (DEV 2023-0040)); and 2) Adoption of Resolution No. 2023-139 approving a Local Coastal Program amendment to update the Local Coastal Program Implementation Plan (Zoning Ordinance, Title 21 of the Carlsbad Municipal Code) to implement a portion of Objective g of Housing Element Program 1.3 -Alternative Housing and Objective h of Housing Element Program 2.13 - Housing for Persons Experiencing Homelessness (Case Name: Alternative and Temporary Housing Amendments; Case No.: ZCA 2023-0002/LCPA 2023-0018 (DEV 2023-0040)). (Staff contact: Scott Donnell, Community Development Department) City Manager's Recommendation: Take public input, close the public hearing, introduce the ordinance and adopt the resolution . City Planner Eric Lardy and Senior Planner Scott Donnell presented the report and reviewed a PowerPoint presentation (on file in the Office of the City Clerk). Mayor Blackburn opened the duly noticed public hearing at 5:37 p.m. Gary Ness um spoke in support of the change. Hearing no one wishing to speak, Mayor Blackburn closed the duly noticed public hearing at 5:38 p.m. Motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member Acosta, to introduce Ordinance No. CS-448. May 23, 2023 Carlsbad City Council Regular Meeting Page 4 City Attorney Cindie McMahon announced the following amendments to paragraph 21.28.015 of the Ordinance: to add the word "not" after the word "but" in the phrase "included but limited to". City Attorney Cindie McMahon titled the ordinance. Motion by Mayor Pro Tern Bhat-Patel seconded by Council Member Acosta, to introduce Ordinance No. CS-448 with the following amendments to paragraph 21.28.015 of the Ordinance: to add the word "not" after the word "but" in the phrase "included but limited to" and adopt Resolution No. 2023-139. Motion carried unanimously, 5/0. 7. ZONING ORDINANCE AMENDMENTS TO ENCOURAGE DEVELOPM ENT OF ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS (ZCA 2023-0001/ LCPA 2023- 0017/ PUB 2023-0002) AND PROPOSED PERMIT-READY ADU PROGRAM -1) Introduction of Ordinance No. CS-449 approving an amendment to the Zoning Ordinance, Title 21 ,of the Carlsbad Municipal Code, to ensure consistency with state law related to accessory dwelling units and junior accessory dwelling units (Case Name: Accessory Dwelling Unit Amendment 2023; Case No.: ZCA 2023-0001/LCPA 2023-0017/PUB 2023-0002)); and 2) Adoption of Resolution No. 2023-140 approving a Local Coastal Program amendment to update the Local Coastal Program Implementation Plan (Zoning Ordinance, Title 21 of the Carlsbad Municipal Code) to ensure consistency with state law related to accessory dwelling units and junior accessory dwelling units; and 3) Receive an informational report on the status of the pre-approved Accessory Dwelling Unit Plans and provide direction, if necessary. (Case Name: Accessory Dwelling Unit Amendment 2023; Case No.: ZCA 2023-0001/LCPA 2023-0017/PUB 2023-0002))(Staff contact: Shelly Glennon, Community Development Department) City Manager's Recommendation : Take public input, close the public hearing, introduce the ordinance, adopt the resolution, receive the report and provide direction, if necessary. City Planner Eric Lardy and Associate Planner Shelley Glennon presented the report and reviewed a PowerPoint presentation (on file in the Office of the City Clerk). Mayor Blackburn opened the duly noticed public hearing at 5:51 p.m. Sue Lofton spoke regarding various aspects of the ordinance. Gary Ness um spoke in support of the change to the municipal code. Hearing no one wishing to speak, Mayor Blackburn closed the duly noticed public hearing at 5:56 p.m. City Attorney Cindie McMahon titled the ordinance. May 23, 2023 Carlsbad City Council Regular Meeting Page 5 Motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member Acosta, to introduce Ordinance No. CS-449 and adopt Resolution No. 2023-140. Motion carried unanimously, 5/0. Minute Motion by Council Member Luna, second by Council Member Acosta, directing staff to return in one year with a report that addresses the following items: the number of off the shelf accessory dwelling units built, neighborhood comments or complaints, length of the approval process and costs of units, and any other recommendations regarding the off the shelf accessory dwelling unit program that may require pivoting in four or five months. Motion carried unanimously, 5/0. The City Council received the report. DEPARTMENTAL AND CITY MANAGER REPORTS: Item No. 10 was heard before Departmental and City Manager Reports Item No. 8. 10. CONSIDER APPROVAL OF A CITY COUNCIL POLICY STATEMENT -DISPLAY OF FLAGS AT CITY HALL -1) Adoption of a resolution approving City Council Policy Statement -Display of Flags at City Hall authorizing the display of commemorative flags at City Hall in addition to the United States of America and State of California flags; or 2) Adoption of a resolution approving City Council Policy Statement -Display of Flags at City Hall that authorizes the display of only the United States of America and State of California flags at City Hall. {Staff contact: Sheila Cobian, City Manager's Department) City Manager's Recommendation: Adopt a resolution. Legislative & Constituent Services Director Sheila Cobian presented the report and reviewed a PowerPoint presentation {on file in the Office of the City Clerk). Katrina Widelich spoke in support of flying commemorative flags. Sarah Hunter spoke in support of flying commemorative flags. Ash Bering spoke in support of flying commemorative flags. Leticia Reyes spoke in support of flying only the United States Flag in City Hall. Max Disposti with North County LGBTQ Resource Center spoke in support of flying commemorative flags. Nikki Faddick spoke in support of flying commemorative flags. In response to an inquiry from Mayor Pro Tern Bhat-Patel, City Attorney McMahon explained that the flag policy is to give the City Council sole discretion of the messages that will be communicated through flying a flag. May 23, 2023 Carlsbad City Council Regular Meeting Page 6 In response to an inquiry from Mayor Pro Tern Bhat-Patel, City Attorney McMahon explained that legally, the flags can be placed on the same pole. Legislative & Constituent Services Director Cobian explained that the flags cannot physically be placed on the same pole due to lowering of other flags and further explained that commemorative flags must be placed underneath the United States flag. In response to Council Member Acosta, City Attorney McMahon explained that if the City Council passed to fly commemorative flags, they can not specify a viewpoint even if the flag conveyed a message that the City Council did not agree with. She further explained that if the City Council reserved the flag poles solely for City messages, then the City doesn't have to fly any flags that are requested and is referred as government speech. Motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member Acosta, to adopt a resolution approving City Council Policy Statement -Display of Flags at City Hall authorizing the display of commemorative flags at City Hall in addition to the United States of America and State of California flags. Motion failed, 3/2 (Blackburn, Burkholder-No). Mayor Blackburn declared a recess at 6:42 p.m. Mayor Blackburn reconvened the meeting at 6:52 p.m. Item No. 8 was heard following Departmental and City Manager Reports Item No. 10. 8. APPOINTM ENT TO THE SAN DIEGO COUNTY WATER AUTHORITY BOARD OF DIRECTORS - Adoption of Carlsbad Municipal Water District Board of Directors Resolution No. 1706 . approving an appointment to the San Diego County Water Authority Board of Directors. (Staff contact: Faviola Medina, City Clerk Services Department) City Manager's Recommendation: Adopt the resolution. Mayor Blackburn introduced the item. Motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member Acosta, to adopt Resolution No. 1706 appointing Vicki Quiram to the San Diego County Authority Board of Directors. Motion carried unanimously, 5/0. 9. FISCAL YEAR 2023-24 PRELIMINARY OPERATING BUDGET, STRATEGIC DIGITAL TRANSFORMATION INVESTM ENT PROGRAM AND CAPITAL IMPROVEMENT PROGRAM , FISCAL YEAR 2023-24 MASTER FEE SCHEDULE, THE CROSSINGS AT CARLSBAD PROPOSED RESERVE POLICY -1) Receive the report; and 2) Adoption of Resolution No. 2023-141 setting a public hearing for June 13, 2023, for adoption of the Fiscal Year 2023-24 Operating, Strategic Digital Transformation Investment Program, and Capital Improvement Program budgets; Carlsbad's share of the Encina Wastewater Authority operating and capital budgets; the Gann spending limit for fiscal year 2023-24; and changes to the Master Fee Schedule; and determining the Fiscal Year 2023-24 May 23, 2023 Carlsbad City Council Regular Meeting Page 7 Capital Improvement Plan Budget is consistent with the General Plan and applicable Climate Action Plan measures and actions; and 3) Adoption of Carlsbad Municipal Water District of the Board of Directors Resolution No. 1707 setting a public hearing for June 13, 2023, for adoption of the Fiscal Year 2023-24 Operating and Capital Improvement Program budgets and changes to the Master Fee Schedule; and 4) Adoption of Public Financing Authority Board of Directors Resolution No. 92 setting a public hearing for June 13, 2023, for adoption of the Fiscal Year 2023-24 Operating and Capital Improvement Program Budgets for The Crossings at Carlsbad Municipal Golf Course; and 5) Adoption of Community Development Commission Resolution No. 561 setting a public hearing for June 13, 2023, for adoption of the Fiscal Year 2023-24 Operating Budget of the Carlsbad Housing Authority; and 6) Adoption of a City of Carlsbad as the Successor Agency for the Carlsbad Redevelopment Agency Resolution No. 2023-142 setting a public hearing for June 13, 2023, for adoption of the Fiscal Year 2023-24 Operating Budget of the Successor Agency (Staff contact: Laura Rocha and Zach Korach, Administrative Services Depart ment) City Manager's Recommendation: Receive the report and adopt the resolutions. Finance Director Zach Korach and Deputy City Manager Administrative Services Laura Rocha presented the report and reviewed a PowerPoint presentation (on file in the Office of the City Clerk). Mayor Blackburn declared a recess at 8:05 p.m. Mayor Blackburn reconvened the meeting at 8:10 p.m. Carlsbad Village Association Executive Director Christine Davis expressed her support for staff's recommendation and requested $20 thousand to fund a feasibility study to form a Property Bid Improvement District (PBID) in the Village. In response to Mayor Blackburn's request for staff to respond to Christine Davis' question, Chief Innovation Officer David Graham explained that the feasibility study determines boundaries, businesses that will be accessed and the types of services provided. Chief Innovation Officer Graham further explained that the cost of the initial feasibility cost for the PBID could be recuperated if the study moves forward. Minute Motion by Council Member Burkholder, second by Mayor Pro Tern Bhat-Patel, directing the staff to bring back options to fund $20,000 in furtherance of the PBID feasibility study for City Council consideration at the June 13 Regular City Council Meeting. Motion carried unanimously, 5/0. May 23, 2023 Carlsbad City Council Regular Meeting Page 8 In response to an inquiry from Mayor Pro Tern Bhat-Patel, Transportation Director Tom Frank explained that the rationale for the La Costa Avenue Traffic Improvements move from fiscal year 2024 to 2027 was due to some improvements that have been made along that corridor and they expect more projects that will have traffic calming benefits. In response to an inquiry from Mayor Pro Tern Bhat-Patel, Transportation Director Frank explained that the Caminos del Los Coches and La Costa Avenue Intersection Control Project would be a reconfiguration from Pine Avenue to the Encinitas border and would address pedestrian safety. In response to an inquiry from Council Member Acosta, Finance Director Korach explained that the golf course loan was written off, but it was not forgiven, therefore the City has continued to disclose that in the financial statements. Finance Director Korach furth~r explained that for that reason, there is a proposed reserve policy laying forth an option to make payments back to the General Fund and the golf course operator are aware of the repayment. In response to an inquiry from Council Member Acosta, Finance Director Korach explained that the increase in revenue is unprecedented due to the pandemic and projects a normalization of demand. Finance Director Korach further explained that the golf course operators have made an effort toward social media to meet as many users as possible. In response to an inquiry from Council Member Burkholder, Public Works Manager John Maashoff explained that telematics for fleet vehicles includes GPS, if there is an incident, and health of the vehicle. In response to an inquiry from Council Member Burkholder, Finance Director Korach explained that the largest use of the reserves going back to 2016 would be additional discretionary payments to California Public Employees' Retirement System (CALPERS) and over the past seven years, $56.4 million has been contributed . Minute Motion by Council Member Burkholder, second by Mayor Blackburn, directing staff to return with a report to provide a funding source and cost for trenching in the Village for City Council conside,ration at the June 13, 2023, Regular City Council meeting. Motion carried unanimously, 5/0. In response to an inquiry from Council Member Acosta, Finance Director Zach Korach explained that within the $37.45 million includes additional appropriation for Veteran's Park Memorial, he further explained that t he cost is $45 million for a net total cost of $37 million after factoring in Federal and State Grants. Motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member Acosta, to adopt Resolution No. 2023-141, Carlsbad Municipal Water District Resolution No. 1707, Public Financing Authority Board of Directors Resolution No. 92, Community Development