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HomeMy WebLinkAbout2024-06-18; City Council; ; Proposition H Ballot MeasureCA Review CKM Meeting Date: June 18, 2024 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Cindie McMahon, City Attorney cindie.mcmahon@carlsbadca.gov, 442-339-2891 Faviola Medina, City Clerk Services Director faviola.medina@carlsbadca.gov, 442-339-5989 Sheila Cobian, Legislative & Constituent Services Director sheila.cobian@carlsbadca.gov, 442-339-2917 Subject: Proposition H Ballot Measure District: All Recommended Action Adopt a resolution calling a municipal election to submit a ballot measure to the voters to amend the city charter and Carlsbad Municipal Code Chapter 1.24 to increase the expenditure limit, add an inflation index to the limit, and exempt public safety facilities from the limit; requesting consolidation services from the San Diego County Board of Supervisors; directing the preparation of an impartial analysis; and establishing procedures for ballot arguments and rebuttals. Executive Summary/Explanation & Analysis Prop H ballot measure On June 11, 2024, the City Council directed staff to prepare the documents necessary to place a council-sponsored measure on the Nov. 5, 2024, general municipal election ballot relating to Proposition H, in addition to the already scheduled council seats. The measure consists of proposed amendments to Article 4, Section 400 of the city charter and Chapter 1.24, Sections 1.24.030 and 1.24.060, of the Carlsbad Municipal Code to increase the expenditure limit for using city funds to acquire or improve real property, add an inflation index to the limit, and exempt public safety facilities from the limit. June 18, 2024 Item #12 Page 1 of 35 The companion ballot question is: The full text of the proposed ballot measure is included in Attachment A to Exhibit 1. The City Council is required to take certain actions to place the measure before the voters, set the priorities for filing written arguments, direct the City Attorney to prepare an impartial analysis and provide for the filing of rebuttal arguments for the ballot measure. Two questions to be considered by the City Council are: • Does the City Council wish to take a position on the ballot measure and allow its members to submit an argument supporting the position? Generally, the city may not use public resources to campaign for or against ballot measures. The City Council may, however, adopt a position on a ballot measure, as long as the position is adopted at an open meeting where all voices have the opportunity to be heard. Consistent with this ability, California Elections Code Section 9282 allows the City Council to authorize council members to write arguments in favor of, or against, the measure. The resolution in Exhibit 1 anticipates the City Council will choose to take a position in favor of the measure if the City Council places the measure on the ballot. Consequently, the resolution in Exhibit 1 includes language authorizing the Mayor or a designee to prepare the city’s ballot argument, which the City Council members may then choose to sign. These provisions can be excised from the resolution if the City Council chooses not to take a position on the measure or does not wish to submit a written argument in support of its position. • Does the City Council wish to allow rebuttals to the arguments in favor of or against the measure? California Elections Code Section 9285(b) allows the City Council to determine whether to permit rebuttal arguments. The City Council has historically permitted them and Exhibit 1 anticipates the City Council will choose to permit them for this ballot measure. Exhibit 1 also anticipates the Mayor or a designee would prepare the city’s rebuttal MEASURE ___. INCREASE EXPENDITURE LIMIT FOR USING CITY FUNDS TO ACQUIRE OR IMPROVE REAL PROPERTY, ADD AN INFLATION INDEX TO THE LIMIT, AND EXEMPT PUBLIC SAFETY FACILITIES FROM THE LIMIT Shall the voters of the City of Carlsbad adopt the measure amending the city charter and municipal code to: (1) 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 today’s dollars); (2) adjust the limit annually on January 1 by the percentage increase in the regional construction cost index; and (3) exempt public safety facilities from the limit? YES NO June 18, 2024 Item #12 Page 2 of 35 argument, which the City Council members may then choose to sign. If the City Council chooses not to allow rebuttal arguments or does not wish to authorize the Mayor or designee to prepare one on the city’s behalf, these provisions can be excised from the resolution. Members of the public may also file written arguments for or against the measure. If there are multiple arguments for or against the measure, California Evidence Code Section 9287 prioritizes which arguments are to be selected for printing and distribution to the voters. The priority order is: (1) Authorized City Council members (2) Measure sponsors (3) Bona fide citizens’ associations (4) Individuals eligible to vote on the measure Arguments may not exceed 300 words and rebuttals may not exceed 250 words. Additionally, arguments and rebuttals may not be signed by more than five people. Ballot measure timeline Because the city will be requesting to consolidate the city’s general municipal election with the statewide general election, the deadlines for the submittal of arguments and rebuttals will be the same deadlines as set by the Registrar of Voters and California Elections Code: Aug. 9 Ballot text and consolidation resolution due to the Registrar of Voters Aug. 15, by noon Arguments in favor of or against the ballot measure are due at the City Clerk’s Office Aug. 16-26 Public examination period for arguments Aug. 16, by noon City Attorney’s impartial analysis is due at the City Clerk’s Office Aug. 17-27 Public examination period for impartial analysis Aug. 20, by noon Rebuttal arguments are due at the City Clerk’s Office Aug. 21 – Aug. 31 Public examination period for rebuttal arguments Fiscal Analysis Although the actual costs of the election are likely to vary depending on how many jurisdictions participate and other factors, based on an estimate provided by the San Diego County Registrar of Voters, staff estimate that placing the Proposition H measure on the Nov. 5, 2024, statewide general election ballot, will cost the city approximately $135,000-$175,000. The City Clerk’s Office’s budget for fiscal year 2024-25 does not include the necessary funds to cover the costs related to the election. June 18, 2024 Item #12 Page 3 of 35 Staff will request the necessary appropriations as part of the fiscal year 2023-24 year-end carryforward report in September 2024. Next Steps Staff will file the resolutions with the San Diego County Board of Supervisors and Registrar of Voters requesting consolidation of the city’s general and special municipal election with the statewide general election on Nov. 5, 2024. In addition, staff will publish the notice of the election on the city’s website and in the following local newspapers of general circulation authorized to publish legal notices: • The Coast News • The San Diego Union-Tribune • El Latino • Tieng Viet San Diego News • The Filipino Press • The Epoch Times Environmental Evaluation This action does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Exhibits 1. City Council resolution calling a municipal election to submit a ballot measure to the voters to amend the city charter and Carlsbad Municipal Code Chapter 1.24 to increase the expenditure limit, add an inflation index to the limit, and exempt public safety facilities from the limit; requesting consolidation services from the San Diego County Board of Supervisors; directing the preparation of an impartial analysis; and establishing procedures for ballot arguments and rebuttals 2. Registrar of Voters cost estimate for measure 3. June 11, 2024, Staff Report – Prop H (on file in the Office of the City Clerk) June 18, 2024 Item #12 Page 4 of 35 RESOLUTION NO. 2024-152 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, CALLING A MUNICIPAL ELECTION TO SUBMIT A BALLOT MEASURE TO THE VOTERS TO AMEND THE CITY CHARTER AND CARLSBAD MUNICIPAL CODE CHAPTER 1.24 TO INCREASE THE EXPENDITURE LIMIT, ADD AN INFLATION INDEX TO THE LIMIT, AND EXEMPT PUBLIC SAFETY FACILITIES FROM THE LIMIT; REQUESTING CONSOLIDATION SERVICES FROM THE SAN DIEGO COUNTY BOARD OF SUPERVISORS; DIRECTING THE PREPARATION OF AN IMPARTIAL ANALYSIS; AND ESTABLISHING PROCEDURES FOR BALLOT ARGUMENTS AND REBUTTALS WHEREAS, as authorized by California Elections Code Sections 9222 and 9255 and California Government Code 34458, the City Council wishes to hold an election for the purpose of submitting to the voters a ballot measure to obtain voter authorization to increase the expenditure limit for using city funds to acquire or improve real property, add an inflation index to the limit, and exempt public safety facilities from the limit; and WHEREAS, California Elections Code Sections 9222 and 9255 and California Government Code Section 34458 require the election to be held at an established statewide general election occurring not less than 88 days after the date of the order of election; and WHEREAS, the next regular election meeting this criterion is the statewide general election to be held on Nov. 5, 2024; and WHEREAS, it is desirable for the municipal election to be consolidated with the statewide general election; and WHEREAS, it is desirable to obtain an impartial analysis of the ballot measure; and WHEREAS, it is desirable to establish the procedures for ballot arguments and to authorize the Mayor or a designee to prepare a written argument in favor of the measure. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. 2. The above recitations are true and correct. Call for Municipal Election. a.As authorized by California Elections Code Sections 9222, 9255 and 10201, and California Government Code Section 34458, a municipal election in the City of Carlsbad is called for Nov. 5, 2024 to submit to the voters a ballot measure to obtain voter authorization to increase the expenditure limit for using city funds to acquire Exhibit 1 June 18, 2024 Item #12 Page 5 of 35 3. 4. or improve real property, add an inflation index to the limit, and exempt public safety facilities from the limit. b.In accordance with California Elections Code Section 10418, the hours for the opening and closing of the vote centers for the municipal election shall be the same as provided for the statewide general election on Nov. 5, 2024. c.The City Clerk's Office shall give further notice of the municipal election as required by law. Consolidation with Statewide Primary Election. a.In accordance with California Elections Code Section 10403, the City Council requests the County of San Diego Board of Supervisors to consent and agree to the inclusion of the ballot measure and consolidate the municipal election with the statewide primary election on Nov. 5, 2024, and to issue instructions to the Registrar of Voters to take the necessary steps for holding the consolidated election. b.The ballot question and the full text of the ballot measure to be presented to the voters are set forth in Attachment A. c.A majority vote of the voters (50% +1) is required to approve the ballot measure. d.The City Council acknowledges the consolidated election will be held and conducted in the manner prescribed by California Elections Code Section 10418. e.That in accord with Article XXIV-A, Section 439.1(2)(d) of the San Diego County Code of Administrative Ordinances, the City of Carlsbad agrees to indemnify and hold harmless the county, its officers, agents and employees from liability expenses, including reasonable attorney fees, as the result of an election contest arising after the conduct of the election, so long as the election contest relates to the city's municipal election and either arises from the conduct of the city or as a result of the reasonable reliance by county upon information provided by the city. Reimbursement of Election Costs. The city will reimburse the county for the costs incurred for the consolidation upon the county's presentation of a properly submitted bill. June 18, 2024 Item #12 Page 6 of 35 5.Submission of Resolution to County Officials. The City Clerk's Office is directed to file a certified copy of this resolution and its attachment with the Board of Supervisors and the Registrar of Voters in the time and manner required by law. 6. 7. Impartial Analysis. The City Clerk's Office is directed to transmit a copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure in accordance with California Elections Code Section 9280 showing the effect of the measure on the existing law and the operation of the measure. The analysis shall include a statement indicating the measure was placed on the ballot by the City Council. The impartial analysis shall not exceed 500 words. If the entire text of the measure is not printed on the ballot, or in the voter information pamphlet, there shall be printed immediately below the impartial analysis in no less than 10-point bold type: "The above statement is an impartial analysis of Ordinance or Measure ___ . If you desire a copy of the ordinance or measure, please call the City Clerk's Office at 442-339-2808 and a copy will be mailed at no cost to you." Ballot Arguments. a.The Mayor or a designee is authorized to prepare a written argument in favor of the measure. If a qualified argument against the measure is submitted, the Mayor or a designee may prepare a rebuttal argument. The argument in favor and the rebuttal argument, if any, may also be signed by the other members of the City Council. b.Arguments and rebuttals shall comply with the applicable provisions of the California Elections Code, including Sections 9282 through 9285 and Section 9600. c.Arguments in favor of or against the measure shall not exceed 300 words. Rebuttal arguments shall not exceed 250 words. d.All arguments and rebuttals shall be filed with the City Clerk's Office, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. All arguments and rebuttals shall be accompanied by the Form of Statement to be Filed by the Author(s) of Argument signed by no more than five authors. June 18, 2024 Item #12 Page 7 of 35 e.If the City Clerk's Office receives multiple arguments in favor of or against the measure, the City Clerk or designee shall select one argument in favor of and one argument against the measure, giving preference and priority in the order specified in California Elections Code Section 9287. f.When the City Clerk or designee has selected the arguments for and against the measure which will be printed and distributed to the voters, the City Clerk or designee shall send a copy of the argument in favor of the measure to the authors of the argument against the measure and a copy of the argument against the measure to the authors of the argument in favor of the measure. The author or a majority of the authors of an argument relating to the measure may prepare and submit a rebuttal argument or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument. Rebuttal arguments shall be filed with the City Clerk's Office no later than 10 days after the final filing date for direct arguments. A rebuttal argument shall be printed in the same manner as a direct argument and shall immediately follow the direct argument which it seeks to rebut. g.The arguments may be changed or withdrawn until and including the date fixed by the City Clerk or designee, after which no arguments for or against the measure may be submitted. h.These provisions for ballot arguments shall apply only to the general municipal election to be held on Nov. 5, 2024. 8.Public Examination and Publication of Measure. Impartial Analysis and Ballot Arguments. The City Clerk's Office shall make a copy of the ballot measure, the City Attorney's impartial analysis and any ballot arguments available for public examination in accord with California Elections Code Sections 9223 and 9295. The City Clerk's Office is further directed to publish a synopsis of the ballot measure in the manner required by California Elections Code Section 12111 at least one week before the election. June 18, 2024 Item #12 Page 8 of 35 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 18th day of June, 2024, by the following vote, to wit: AYES: NAYS: ABSENT: ABSTAIN: BLACKBURN, BHAT-PATEL, ACOSTA. BURKHOLDER, LUNA. NONE. NONE. June 18, 2024 Item #12 Page 9 of 35 Attachment A Ballot Question Full Text of Ballot Measure Amendment to the Charter of the City of Carlsbad AMENDMENT TO ARTICLE 4, SECTION 400, OF THE CHARTER OF THE CITY OF CARLSBAD TO ACKNOWLEDGE VOTER AMENDMENTS TO PROPOSITION H 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 (Carlsbad Municipal Code Chapter 1.24), as it may be amended by the voters 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. This charter amendment shall take effect as provided in California Government Code Section 34459. SECTION 3. The City Clerk’s Office shall publish this charter amendment according to law and cause the amendment to be submitted to the Secretary of State as provided in California Government Code Section 34460. MEASURE ___. INCREASE EXPENDITURE LIMIT FOR USING CITY FUNDS TO ACQUIRE OR IMPROVE REAL PROPERTY, ADD AN INFLATION INDEX TO THE LIMIT, AND EXEMPT PUBLIC SAFETY FACILITIES FROM THE LIMIT Shall the voters of the City of Carlsbad adopt the measure amending the city charter and municipal code to: (1) 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 today’s dollars); (2) adjust the limit annually on January 1 by the percentage increase in the regional construction cost index; and (3) exempt public safety facilities from the limit? YES NO June 18, 2024 Item #12 Page 10 of 35 Ordinance No. ______ AN ORDINANCE OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING CHAPTER 1.24, SECTIONS 1.24.030 AND 1.24.060, OF THE CARLSBAD MUNICIPAL CODE, REFERRED TO AS PROPOSITION H, TO INCREASE THE EXPENDITURE LIMIT FOR USING CITY FUNDS TO ACQUIRE OR IMPROVE REAL PROPERTY, ADD AN INFLATION INDEX TO THE LIMIT, AND EXEMPT PUBLIC SAFETY FACILITIES FROM THE LIMIT The people of the City of Carlsbad, California, do ordain as follows: SECTION 1. 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 $3.09 million dollars in city funds, adjusted 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 2. Chapter 1.24, Section 1.24.060, of the Carlsbad Municipal Code is amended to add a new paragraph at the beginning of the section to read as follows: This chapter shall not apply to any real property acquisition or improvement to real property used for public safety facilities. “Public safety facilities” include 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. 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 18, 2024 Item #12 Page 11 of 35 From:Lau, Liliana To:Faviola Medina Cc:Vargas, Elvira; Sheila Cobian Subject:RE: Quote request Date:Wednesday, September 27, 2023 2:40:55 PM Attachments:image002.pngimage005.png Hi Faviola, There are several election related bills that are currently with the Governor awaiting his signature. Those bills, if approved by the Governor, will affect election costs as they add increased complexity and cost to the administration of elections. We don’t have all the jurisdictions that will be ultimately participating in the election. The Registrar of Voters assign election costs in a consolidated election through the use of a weighted average method. This attributes costs to each jurisdiction based on the number of contests, number of registered voters, number of candidates and the number of pages in the voter information pamphlet. The number of participating jurisdictions and number of contests will be known before the 88th day of the respective election date. The actual costs are likely to vary depending on how many jurisdictions ultimately participate. At this time, the cost projection for a 4-page measure appearing on the November 2024 Presidential General ballot is $135K - $175K based on 80,793 registered voters. Here are the assumptions: All registered voters will receive their official ballot in the mail, along with the “I Voted” stickers. Pre-paid postage for all voters to return their ballot in the mail. Ballot drop-off location(s) for a 28-day period, which requires renting vehicle(s) and hiring temporary staff to pick-up ballots. Vote Centers are open starting 11-days before Election Day. Translation of materials to all federal mandated languages (Spanish, Chinese, Vietnamese and Filipino). ROV hires temporary election workers 90 - 120 days before election day to assist with election activities and these workers are usually kept until the election has been certified. Two-card ballot. New size for the voter information pamphlet (8 ½” x 11”) Thanks, Liliana From: Faviola Medina <Faviola.Medina@carlsbadca.gov> Sent: Wednesday, September 27, 2023 1:30 PM To: Lau, Liliana <Liliana.Lau@sdcounty.ca.gov> Exhibit 2 June 18, 2024 Item #12 Page 12 of 35 Cc: Vargas, Elvira <Elvira.Vargas@sdcounty.ca.gov>; Sheila Cobian <Sheila.Cobian@carlsbadca.gov> Subject: [External] RE: Quote request We estimate about 1 page for the question and ordinance, 1 for the impartial analysis, and 1 each for arguments and rebuttals. If this changes, I know that this will of course also change the estimate you provide. Thank you, Faviola Medina, CMC City Clerk Services Manager Office of the City Clerk P: 442-339-5989 From: Lau, Liliana <Liliana.Lau@sdcounty.ca.gov> Sent: Wednesday, September 27, 2023 12:46 PM To: Faviola Medina <Faviola.Medina@carlsbadca.gov> Cc: Vargas, Elvira <Elvira.Vargas@sdcounty.ca.gov>; Sheila Cobian <Sheila.Cobian@carlsbadca.gov> Subject: RE: Quote request Hi Faviola, Do you know the number of pages (including arguments, rebuttals, and fiscal analysis) for the ballot measure? Thanks, Liliana From: Faviola Medina <Faviola.Medina@carlsbadca.gov> Sent: Monday, September 25, 2023 9:41 AM To: Lau, Liliana <Liliana.Lau@sdcounty.ca.gov> Cc: Vargas, Elvira <Elvira.Vargas@sdcounty.ca.gov>; Sheila Cobian <Sheila.Cobian@carlsbadca.gov> Subject: [External] Quote request Good Morning, I know I asked this back in May but am checking in to see if you are now able to provide us with a June 18, 2024 Item #12 Page 13 of 35 quote. May I get a quote for a possible measure to be placed in our Nov. 2024 election? Please advise. Thank you, Faviola Medina, CMC City Clerk Services Manager Office of the City Clerk 1200 Carlsbad Village Drive Carlsbad, CA 92008 P: 442-339-5989 | faviola.medina@carlsbadca.gov | www.carlsbadca.gov Facebook | Twitter | You Tube | Flickr | Pinterest | Enews|P Consider the environment before printing this e- mail Confidentiality Notice: Please note that email correspondence with the City of Carlsbad, along with any attachments, may be subject to the California Public Records Act, and therefore may be subject to disclosure unless otherwise exempt. CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. June 18, 2024 Item #12 Page 14 of 35 CA 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 8June 18, 2024 Item #12 Page 15 of 35 Exhibit 3 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 8June 18, 2024 Item #12 Page 16 of 35 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. June 11, 2024 Item #15 Page 3 of 8June 11, 2024 Item #15 Page 3 of 8June 18, 2024 Item #12 Page 17 of 35 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 8June 18, 2024 Item #12 Page 18 of 35 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 8June 18, 2024 Item #12 Page 19 of 35 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 8June 18, 2024 Item #12 Page 20 of 35 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 8June 18, 2024 Item #12 Page 21 of 35 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 8June 18, 2024 Item #12 Page 22 of 35 Re p o r t o n B a l l o t M e a s u r e Op t i o n s f o r P r o p o s i t i o n H Am e n d m e n t s o r E x e m p t i o n s Ci n d i e M c M a h o n , C i t y A t t o r n e y Za c h K o r a c h , F i n a n c e D i r e c t o r Ju n e 1 1 , 2 0 2 4 June 18, 2024 Item #12 Page 23 of 35 2 BA C K G R O U N D • Pr o p o s i t i o n H w a s a d o p t e d b y t h e v o t e r s i n 1 9 8 2 • Re q u i r e s v o t e r a p p r o v a l f o r r e a l p r o p e r t y p u r c h a s e s or i m p r o v e m e n t s t o r e a l p r o p e r t y > $ 1 m i l l i o n i n c i t y fu n d s • In c l u d e d i n C a r l s b a d M u n i c i p a l C o d e C h a p t e r 1 . 2 4 • Re f e r e n c e d i n A r t i c l e 4 , S e c t i o n 4 0 0 , o f t h e C i t y Ch a r t e r • Do e s n o t i n c l u d e a n i n f l a t i o n i n d e x IT E M 1 5 : P R O P O S I T I O N H June 18, 2024 Item #12 Page 24 of 35 3 BA C K G R O U N D • “C i t y f u n d s ” = ge n e r a l f u n d m o n e y s , f e d e r a l ge n e r a l re v e n u e s h a r i n g m o n e y s , a n d a l l o t h e r mo n e y s , ex c e p t s p e c i f i c p u r p o s e g r a n t s , s p e c i a l a s s e s s m e n t s , an d d e v e l o p m e n t f e e s • “I m p r o v e m e n t s t o r e a l p r o p e r t y ” e x c l u d e re p l a c e m e n t , re p a i r , m a i n t e n a n c e , r o u t i n e re f u r b i s h m e n t o r u p g r a d e s o f ex i s t i n g f a c i l i t i e s IT E M 1 5 : PR O P O S I T I O N H June 18, 2024 Item #12 Page 25 of 35 4 PR I O R P R O P O S I T I O N H V O T E S Ye a r Pr o j e c t ( s ) Ex p e n d i t u r e s 19 8 3 Po l i c e & F i r e A d m i n B l d g . , V e h i c l e M a i n t . B l d g . , F i r e S t a t i o n N o . 5 $1 2 , 0 5 2 , 1 8 9 19 8 7 Ho s p G r o v e p a r k l a n d $ 6 , 5 5 5 , 0 0 0 19 8 9 Th e C r o s s i n g s a t C a r l s b a d g o l f c o u r s e $6 3 , 3 3 4 , 1 1 7 20 0 2 Sa f e t y T r a i n i n g C e n t e r , A l g a N o r t e P a r k a n d P o o l , o p e n s p a c e $2 8 , 0 2 3 , 1 6 7 ac q u i s i t i o n , t r a i l s a n d t r a i l c o n n e c t i o n s 20 1 6 Fi r e S t a t i o n N o . 2 $1 4 , 2 1 8 , 6 6 2 20 2 2 Mo n r o e S t r e e t P o o l r e n o v a t i o n $2 2 , 0 0 0 , 0 0 0 - $2 4 , 0 0 0 , 0 0 0 (e s t . ) IT E M 1 5 : P R O P O S I T I O N H June 18, 2024 Item #12 Page 26 of 35 5 CI T I Z E N S C O M M I T T E E RE C O M M E N D A T I O N • Co n s i d e r b a l l o t m e a s u r e t o i n c r e a s e $ 1 m i l l i o n ex p e n d i t u r e l i m i t • In d e x e x p e n d i t u r e l i m i t t o i n f l a t i o n s o i t w i l l in c r e a s e o v e r t i m e IT E M 1 5 : P R O P O S I T I O N H June 18, 2024 Item #12 Page 27 of 35 6 CI T Y C O U N C I L R E Q U E S T • Pr o v i d e s a m p l e b a l l o t l a n g u a g e i n c r e a s i n g ex p e n d i t u r e l i m i t a n d i n d e x i n g t o i n f l a t i o n • Pr o v i d e s a m p l e b a l l o t l a n g u a g e t o e x e m p t p u b l i c sa f e t y f a c i l i t i e s f r o m P r o p o s i t i o n H IT E M 1 5 : P R O P O S I T I O N H June 18, 2024 Item #12 Page 28 of 35 7 IN C R E A S E E X P E N D I T U R E L I M I T A N D AD D I N F L A T I O N I N D E X • Pr o p o s e d l i m i t = $ 3 . 0 9 m i l l i o n • Ap p r o x i m a t e s $ 1 m i l l i o n a d j u s t e d b y r e g i o n a l Co n s t r u c t i o n C o s t I n d e x a s o f D e c e m b e r 2 0 2 3 • Wi l l n o t a p p r e c i a b l y r e d u c e n u m b e r o f f u t u r e pr o j e c t s r e q u i r i n g v o t e r a p p r o v a l • Mo s t f u t u r e p l a n n e d c o n s t r u c t i o n p r o j e c t s e x p e c t e d to e x c e e d $ 1 0 m i l l i o n IT E M 15 : PR O P O S I T I O N H June 18, 2024 Item #12 Page 29 of 35 8 EX E M P T P U B L I C S A F E T Y F A C I L I T I E S FR O M E X P E N D I T U R E L I M I T • “P u b l i c s a f e t y f a c i l i t i e s ” i n c l u d e f a c i l i t i e s f o r :  La w e n f o r c e m e n t s e r v i c e s  Fi r e r e s c u e a n d p r e v e n t i o n s e r v i c e s  Li f e g u a r d s e r v i c e s  Em e r g e n c y m e d i c a l s e r v i c e s  Em e r g e n c y o p e r a t i o n s  Tr a i n i n g f o r p u b l i c s a f e t y e m p l o y e e s IT E M 15 : PR O P O S I T I O N H June 18, 2024 Item #12 Page 30 of 35 9 OT H E R O P T I O N S • Co m b i n e t h e t w o b a l l o t m e a s u r e s • De v e l o p o t h e r b a l l o t m e a s u r e p r o p o s a l s • Ta k e n o a c t i o n IT E M 15 : PR O P O S I T I O N H June 18, 2024 Item #12 Page 31 of 35 10 FI S C A L I M P A C T A N D N E X T S T E P S • Co s t o f b a l l o t m e a s u r e = $ 1 3 5 , 0 0 0 t o $ 1 7 0 , 0 0 0 • St a f f t o r e t u r n o n J u n e 1 8 , 2 0 2 4 , w i t h d o c u m e n t s t o pl a c e m e a s u r e ( s ) o n b a l l o t • De a d l i n e t o p l a c e m e a s u r e ( s ) o n b a l l o t = A u g . 9 , 20 2 4 IT E M 15 : PR O P O S I T I O N H June 18, 2024 Item #12 Page 32 of 35 11 SU M M A R Y O F P O T E N T I A L AC T I O N S 1. Pr o p o s e a m e n d m e n t t o i n c r e a s e e x p e n d i t u r e lim i t 2. Pr o p o s e a m e n d m e n t t o e x e m p t p u b l i c s a f e t y fa c i l i t i e s 3. Bo t h 1 a n d 2 4. Ot h e r b a l l o t p r o p o s a l 5. Ta k e n o a c t i o n IT E M 15 : PR O P O S I T I O N H June 18, 2024 Item #12 Page 33 of 35 12 QU E S T I O N S ? IT E M 15 : PR O P O S I T I O N H June 18, 2024 Item #12 Page 34 of 35 13 BA L L O T Q U E S T I O N – EX P E N D I T U R E L I M I T A N D IN F L A T I O N I N D E X IT E M 1 5 : P R O P O S I T I O N H ME A S U R E _ _ _ . I N C R E A S E E X P E N D I T U R E L I M I T A N D A D D A N I N F L A T I O N I N D E X FO R U S I N G C I T Y F U N D S T O A C Q U I R E O R I M P R O V E R E A L P R O P E R T Y Sh a l l t h e v o t e r s o f t h e C i t y o f C a r l s b a d a d o p t t h e m e a s u r e a m e n d i n g t h e c i t y ch a r t e r a n d m u n i c i p a l c o d e t o i n c r e a s e t h e e x p e n d i t u r e l i m i t f o r u s i n g c i t y f u n d s to a c q u i r e o r i m p r o v e r e a l p r o p e r t y f r o m $ 1 m i l l i o n ( t h e l i m i t e s t a b l i s h e d b y vo t e r s i n 1 9 8 2 ) t o $ 3 . 0 9 m i l l i o n ( t h e 1 9 8 2 l i m i t i n 2 0 2 4 d o l l a r s ) , a d j u s t e d an n u a l l y o n J a n u a r y 1 b y t h e p e r c e n t a g e i n c r e a s e i n t h e r e g i o n a l c o n s t r u c t i o n co s t i n d e x ? June 18, 2024 Item #12 Page 35 of 35