HomeMy WebLinkAbout2024-06-11; City Council; ; Proposed Ballot Measure Options for Proposition H Amendments or ExemptionsCA Review CKM
Meeting Date: June 11, 2024
To: Mayor and City Council
From: Scott Chadwick, City Manager
Cindie McMahon, City Attorney
Staff Contact: Cindie McMahon, City Attorney
cindie.mcmahon@carlsbadca.gov, 442-339-2891
Zach Korach, Finance Director
zach.korach@carlsbadca.gov, 442-339-2127
Subject: Proposed Ballot Measure Options for Proposition H Amendments or
Exemptions
Districts: All
Recommended Action
Receive a report on proposed ballot measure options for Proposition H amendments or
exemptions and provide direction to staff.
Executive Summary
Proposition H, adopted by the voters in 1982, prohibits the city from spending more than
$1 million in city funds to acquire or improve real property unless the acquisition or
improvements are first approved by the voters.
The provisions of Proposition H are contained in Carlsbad Municipal Code Chapter 1.24. The
Proposition H expenditure limit is also referenced in Article 4, Section 400 of the city’s charter,
which the voters adopted in 2008.
The expenditure limit does not include an inflation index.
June 11, 2024 Item #15 Page 1 of 8June 11, 2024 Item #15 Page 1 of 8
Since Proposition H was passed in 1982, six measures related to projects exceeding $1 million
have been passed by Carlsbad voters. The measures, projects and total costs are:
Year Proposition Projects Resulting
expenditures
1983 Proposition E
Police & Fire Administration Building,
Vehicle Maintenance Building, and Fire
Station No. 5
$12,052,189
1987 Proposition A Purchase of Hosp Grove for parkland $6,555,000
1989 Proposition G Purchase and construction of The Crossings
at Carlsbad Golf Course $63,334,117
2002 Proposition C
Joint First Responders Training Facility, Alga
Norte Park and Aquatic Center, open space
purchase, Lake Calavera Trails, trail
connectivity to Tamarack State Beach, South
Shore Agua Hedionda Lagoon trail
improvements, Arroyo Vista Trail extension
$28,023,167
2016 Measure O Fire Station 2 $14,218,662
2022 Proposition J Monroe Street Pool renovation $22,000,000-
$24,000,000*
*Estimated project costs
The city's Capital Improvement Program maps out major projects and how they will be funded.
Each year, the City Council approves this plan along with the city budget. The costs for most
planned Capital Improvement Program projects using funding sources subject to Proposition H
are expected to exceed the $1 million expenditure limit and require voter approval.
In July 2023, the Carlsbad Tomorrow: Growth Management Citizens Committee recommended
the City Council consider a ballot measure to increase Proposition H’s $1 million expenditure
limit and add an inflation index to allow the amount to increase over time. The committee was
concerned Proposition H has become a hurdle, making it more difficult and time-consuming for
the city to pursue projects to maintain Carlsbad’s quality of life.
The City Council received a report and presentation on May 14, 2024, discussing the history of
Proposition H and its implementing regulations, previous Proposition H-related ballot
measures, the committee’s recommendation, and potential future options, including a ballot
measure to amend or repeal Proposition H (Exhibit 3).
June 11, 2024 Item #15 Page 2 of 8June 11, 2024 Item #15 Page 2 of 8
At the conclusion of the presentation, the City Council directed staff to return on June 11, 2024,
with potential ballot measure language amending Proposition H to:
1) Increase the expenditure limit and add an inflation index
and/or
2) Exempt public safety facilities from Proposition H
Options, Explanation & Analysis
Amend Proposition H to increase expenditure limit and add an inflation index
The City Council requested city staff propose an expenditure limit and an inflation index. For
inflation adjustments to most development related services fees, the city uses the Western
Region Urban Consumer Price Index, which is published by the Bureau of Labor Statistics. For
inflation adjustments to development impact fees, the city uses the Los Angeles Engineering
News Record Construction Cost Index, which is published by the Engineering News Record.
Had the $1 million dollar expenditure limit included an annual adjustment based on the
Consumer Price Index, the limit would be $3.76 million as of December 2023. Applying the
historical average Consumer Price Index of 3.3% to the limit over the next 15 years, the limit
would increase to $6.12 million by 2038.
Had the $1 million dollar expenditure limit included an annual adjustment based on the
Construction Cost Index, the limit would be $3.09 million as of December 2023. City staff
recommend using this index because it more closely reflects the effect of inflation on
construction project costs over time. Applying the historical average Construction Cost Index of
2.8% to the limit over the next 15 years, the limit would increase to $4.70 million by 2038.
Amending Proposition H to increase the expenditure limit to $3.09 million and adjust the limit
annually by the Construction Cost Index would update the limit to today’s dollars and keep the
limit current going forward. Sample ballot measure language for this option is provided in
Exhibit 1.
From a purchasing power perspective, this amendment would allow the expenditure limit to
remain consistent with the voters’ intent in 1982. However, the amendment will not
appreciably reduce the number of projects requiring voter approval before they may proceed
as most future planned construction projects are expected to exceed the increased amount
and, therefore, would still require voter approval under Proposition H. These projects include
Fire Station 7, the Grand Avenue Promenade, Orion Complex Energy Storage, Robertson Ranch
Park, Zone 5 Park and Cannon Lake Park. The costs for most of these projects will exceed
$10 million.
To appreciably reduce the number of projects needing a Proposition H vote, the projects would
either need to be funded from sources not subject to Proposition H, such as public facility fees,
park-in-lieu fees or special assessments, which may not be available in sufficient amounts, or
the expenditure limit would need to be increased to substantially beyond the inflation adjusted
amount.
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Amend Proposition H to exempt public safety facilities from the expenditure limit
The City Council also requested city staff propose an amendment to exempt public safety
facilities from the expenditure limit. Sample ballot measure language for this option is provided
in Exhibit 2. For the purposes of this proposed exemption, “public safety facilities” includes
facilities for law enforcement services, fire rescue and prevention services, lifeguard services,
emergency medical services and emergency operations, and training for staff providing these
services.
Other options
The City Council could provide direction for staff to combine the above two ballot measure
options or develop other ballot measure options for consideration. The City Council could also
take no further action on the recommendation from the Carlsbad Tomorrow: Growth
Management Citizens Committee. Future real property acquisition and improvement projects
that require expenditures of greater than $1 million from funding sources subject to
Proposition H would continue to require voter approval.
Fiscal Analysis
The cost for placing a measure on the November 2024 General Election ballot is estimated to be
between $135,000 and $170,000.
Next Steps
If the City Council chooses to propose a ballot measure to amend Proposition H to increase the
expenditure limit and add an inflation index, and/or to exempt public safety facilities from the
limit, staff will return to the City Council on June 18, 2024, with the resolutions and other
documents needed to implement this direction.
The deadline to place an item on the ballot for the November 2024 General Election is
Aug. 9, 2024.
Environmental Evaluation
The City Planner has determined that this action is exempt from the requirements of the
California Environmental Quality Act in accordance with Guidelines Section 15378(b)(5), in that
receiving a report and providing direction to staff does not meet the definition of a project. The
action constitutes organizational or administrative activities of governments that will not result
in direct or indirect physical changes in the environment.
Exhibits
1. Proposed ballot measure - Increase expenditure limit and add inflation index
2. Proposed ballot measure - Exempt public safety facilities
3. May 14, 2024, staff report on Proposition H (On file in the Office of the City Clerk)
June 11, 2024 Item #15 Page 4 of 8June 11, 2024 Item #15 Page 4 of 8
Exhibit 1
Ballot Question
Full Text of Ballot Measure
Ordinance No. ______
AN INITIATIVE ORDINANCE OF THE CITY OF CARLSBAD, CALIFORNIA,
AMENDING ARTICLE 4, SECTION 400, OF THE CHARTER FOR THE CITY OF
CARLSBAD AND CHAPTER 1.24, SECTION 1.24.030, OF THE CARLSBAD
MUNICIPAL CODE TO INCREASE THE EXPENDITURE LIMIT AND ADD AN
INFLATION INDEX FOR USING CITY FUNDS TO ACQUIRE OR IMPROVE
REAL PROPERTY
The people of the City of Carlsbad, California, do ordain as follows:
SECTION 1. Article 4, Section 400, of the Charter for the City of Carlsbad is amended to read as
follows:
Section 400 Economic and Community Development.
Subject to the expenditure limitation established by the citizens of Carlsbad in
Proposition H, in 1982as it may be amended from time to time, the City shall have
the power to utilize revenues from the general fund to encourage, support and
promote economic development in the City.
SECTION 2. Chapter 1.24, Section 1.24.030, of the Carlsbad Municipal Code is amended to read
as follows:
The city shall make no real property acquisition and/or no improvement to real
property the cost of which exceeds one $3.09 million dollars in city funds, adjusted
MEASURE ___. INCREASE EXPENDITURE LIMIT AND ADD
AN INFLATION INDEX FOR USING CITY FUNDS TO
ACQUIRE OR IMPROVE REAL PROPERTY
Shall the voters of the City of Carlsbad adopt the measure
amending the city charter and municipal code to increase
the expenditure limit for using city funds to acquire or
improve real property from $1 million (the limit established
by voters in 1982) to $3.09 million (the 1982 limit in 2024
dollars), adjusted annually on January 1 by the percentage
increase in the regional construction cost index?
YES
NO
June 11, 2024 Item #15 Page 5 of 8June 11, 2024 Item #15 Page 5 of 8
annually on January 1 by the percentage increase in the regional construction cost
index, unless the proposed acquisition and/or improvement project and the cost in
city funds is first placed upon the ballot and approved by a majority of the voters
voting thereon at an election. A project may not be separated into parts or phases
so as to avoid the effects of this chapter.
SECTION 3. This ordinance shall take effect as provided in California Elections Code Section
9217.
SECTION 4. The City Clerk’s Office shall publish this ordinance according to law.
June 11, 2024 Item #15 Page 6 of 8June 11, 2024 Item #15 Page 6 of 8
Exhibit 2
Ballot Question
Full Text of Ballot Measure
Ordinance No. ______
AN INITIATIVE ORDINANCE OF THE CITY OF CARLSBAD, CALIFORNIA,
AMENDING ARTICLE 4, SECTION 400, OF THE CHARTER FOR THE CITY OF
CARLSBAD AND CHAPTER 1.24, SECTION 1.24.060, OF THE CARLSBAD
MUNICIPAL CODE TO EXEMPT PUBLIC SAFETY FACILITIES FROM THE
EXPENDITURE LIMIT FOR USING CITY FUNDS TO ACQUIRE OR IMPROVE
REAL PROPERTY
The people of the City of Carlsbad, California, do ordain as follows:
SECTION 1. Article 4, Section 400, of the Charter for the City of Carlsbad is amended to read as
follows:
Section 400 Economic and Community Development.
Subject to the expenditure limitation established by the citizens of Carlsbad in
Proposition H, in 1982as it may be amended from time to time, the City shall have
the power to utilize revenues from the general fund to encourage, support and
promote economic development in the City.
MEASURE ___. EXEMPT PUBLIC SAFETY FACILITIES FROM
THE $1 MILLION EXPENDITURE LIMIT FOR USING CITY
FUNDS TO ACQUIRE OR IMPROVE REAL PROPERTY
Shall the voters of the City of Carlsbad adopt the measure
amending the city charter and municipal code to exempt
public safety facilities, including facilities for law
enforcement services, fire rescue and prevention services,
lifeguard services, emergency medical services and
emergency operations, and training for staff providing
these services, from the $1 million expenditure limit for
using city funds to acquire or improve real property?
YES
NO
June 11, 2024 Item #15 Page 7 of 8June 11, 2024 Item #15 Page 7 of 8
SECTION 2. Chapter 1.24, Section 1.24.060, of the Carlsbad Municipal Code is amended to read
as follows:
A. This chapter shall not apply to any real property acquisition or improvement to
real property used for public safety facilities. “Public safety facilities” includes
facilities for law enforcement services, fire rescue and prevention services,
lifeguard services, emergency medical services and emergency operations, and
training for staff providing these services.
B. This chapter shall not apply to any real property acquisition or improvement to
real property which has obtained a vested right as of the effective date of the
ordinance codified in this chapter. For purposes of this chapter, a "vested right"
shall have been obtained if each of the following is met:
A1. The proposed project has received its final discretionary approval; and
B2. Substantial expenditures have been made in good faith reliance on the final
discretionary approval; and
C3. Substantial construction has been commenced in good faith reliance on the
final discretionary approval, where construction is contemplated.
Whether or not a vested right has been obtained in a particular case is a
question of fact to be determined on a case-by-case basis by the City Council
following notice and public hearing.
SECTION 3. This ordinance shall take effect as provided in California Elections Code Section
9217.
SECTION 4. The City Clerk’s Office shall publish this ordinance according to law.
June 11, 2024 Item #15 Page 8 of 8June 11, 2024 Item #15 Page 8 of 8
Tammy Cloud-McMinn
From: Council Internet Email
Sent: Tuesday, June 11, 2024 8:09 AM
To: City Clerk I,(
Subject: FW: Agenda item JA" Proposition H proposed changes -question and concern
From: Bradford Robbins <bradfordrobbins@gmail.com>
Sent: Monday, June 10, 2024 8:13 PM
To: Council Internet Email <council@carlsbadca.gov>
Cc: Lori Robbins <silentmeowing@gmail.com>
Subject: Agenda item 14 Proposition H proposed changes -question and concern
Dear Carlsbad City Council Members,
I hope this message finds you well. I am writing to express my thoughts and seek clarification on the
proposed changes to Proposition H that will be discussed in the upcoming meeting. While I appreciate
the efforts to update and refine the proposition, I have specific concerns regarding two proposed
changes with questions bolded below.
1. Increase the amount requiring public vote from $1 M to $3.1 M with annual inflation adjustments:
This adjustment seems reasonable and aligns with the increase in construction costs since 1982.
It ensures that the threshold remains relevant in today's economic context.
2. The change in wording to allow amendments "from time to time": The proposed wording change to
allow the proposition to be amended "from time_to time" raises a concern. My primary worry is the
potential for this change to enable amendments without a public vote. If this is the intent, it would
undermine the original purpose of Proposition H, which is to ensure public participation in large
capital spending decisions. It is crucial that any changes to Proposition H maintain the
requirement for a public vote on large capital expenditures to preserve its integrity and public
trust.
Could you please clarify what "amended" means in this context?
3. Exempt Public Safety spending from Proposition H: This exemption seems unreasonable, as large
public safety projects should still be subject to public vote. Given that many of these projects
exceed $1 OM, the cost and effort required for a public vote ($170,000) is relatively minor.
Moreover, large projects typically have a sufficient planning horizon to accommodate the time
needed for public voting. Exempting public safety spending could lead to significant expenditures
without adequate public involvement. I believe it is vital to maintain the requirement for a public
vote on such large-scale projects to ensure transparency and public accountability.
Why exclude these long time horizon, large capital spending decisions?
Thank you for considering my perspective. I look forward to your response.
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