0:00:02 06:00:17 PM Start Audio Recording [06:00:17 PM] 0:00:12 06:00:28 PM Invocation – Pledge of Allegiance 0:00:35 06:00:50 PM Mary Garwood Ms. Garwood gave a pre-RiverBlitz presentation. She said this is the 22nd year for RiverBlitz. She said as of today she has 176 participants registered for May 1, 2021. She said it will be amazing if everyone shows up and that she is excited. She explained it is a river wide clean up, not just in city limits, it includes diving rock (north or Carlsbad) and Higby Hole (south of Carlsbad) and Black River and spaces in between. She said every year she learns of new spot and that gets cleaned up as well. She said this is great for community service or just for volunteering. Nuclear Waste Partnership has provided all the water and Albertson's and La Tienda are providing snacks. She said she has been working with Dave Sepich and Carlsbad Clean Up Task Force and has partnered with Carlsbad Municipal Schools and other entities in the city. She said Irene Holguin with Keept Dona Ana County Beautiful which works with Carlos the Coyote which works with their schools. She said Carlsbad now has rights to Carlos the Coyote. She said there will be books, videos, doing education campaigns. She introduced Carlos the Coyote to the group. She said she wants to get awareness out, she wants to get into the schools, different platforms and different audiences. She said the program has mostly focused on adults, however once it is allowed, Carlos will be visiting the schools. She invited anyone who would like to help with an event. She said Carlos has been very successful in Dona Ana. She said while filming their first video at the Riverwalk there were a lot of high-fives and questions as to what Carlos was about. She said Carlsbad hasn't seen anything like this, Carlos has a purpose, his message is don't litter and let us take care of our land. She said she is looking forward to doing events with all the mascots, Carl S. Bat, and Ringtail. She thanked everyone for their approval of Carlos the Coyote. 0:07:28 06:07:43 PM 1. Approval of Agenda 0:07:28 06:07:43 PM Motion The motion was made by Councilor Carter and seconded by Councilor Waters to approve the Agenda 0:07:32 06:07:47 PM Vote The vote was as follows: Yes - Waters, Carter, Rodriguez, Estrada, Shirley, Anaya-Flores, Chavez; No - None; Absent - Walterscheid; the motion carried 0:07:50 06:08:05 PM 2. City of Carlsbad Financials – February 2021 0:07:55 06:08:10 PM Mrs. Salcido Mrs. Salcido reviewed the revenues and expenditures as of February 2021 for the General Fund contained within the City Budget. 0:09:34 06:09:49 PM 3. Routine and Regular Business A. Minutes of the Regular City Council Meeting held on April 13, 2021 B. City Personnel Report C. Contracts and Agreements 1) Consider Approval of Renewal of Lease Agreement between the City of Carlsbad and the Carlsbad Community Kitchen, Inc. for the Lease of City Owned Building 2) Consider Approval of Renewal of Lease Agreement between the City of Carlsbad and the Carlsbad Literacy Program for the Lease of City Owned Building 3) Consider Approval of Renewal Agreement between the City of Carlsbad and EMSRx, LLC for the Provision of Medical Director Services 4) Consider Approval of Memorandum of Understanding Agreement between the City of Carlsbad and Children, Youth and Families Department (CYFD) for access to the Juvenile Justice Services databases D. Monthly Reports 1) Community Development Department March 2021 2) Municipal Services Department March 2021 3) Utilities Department March 2021 E. Board Appointments 1) City of Carlsbad Chamber of Commerce Appoint: Mark Walterscheid F. Set the Date: June 8, 2021 1) Ordinance rezoning part of “C-2” Commercial 2 District to “R-2” Residential 2 District for an approximately 0.176 acre property located at 211 S Lake Street 2) Ordinance rezoning part of “C-2” Commercial 2 District to “C-1” Commercial 1 District for an approximately 0.187 acre property located at 2207 W Texas Street 3) Ordinance rezoning part of “R-1” Residential 1 District to “C-2” Commercial 2 District for an approximately 0.292 acre property, located 2424 Bonita Street 0:09:56 06:10:11 PM Mayor Janway Mayor Janway asked Mr. Lowe to discuss C.1 Approval of Renewal of Lease Agreement between the City of Carlsbad and the Carlsbad Community Kitchen, Inc. for the Lease of City Owned Building Mr. Lowe explained this agreement has been in effect since 2004, this will be for a five year agreement which would expire in May 2026. He said the Community Kitchen provides meals for those in need and is reimbursed and this is how they pay their rent. He added they provide in-kind services. 0:10:35 06:10:50 PM Motion The motion was made by Councilor Carter and seconded by Councilor Rodriguez to approve Renewal of Lease Agreement between the City of Carlsbad and the Carlsbad Community Kitchen, Inc. for the Lease of City Owned Building 0:10:41 06:10:56 PM Vote The vote was as follows: Yes - Waters, Carter, Rodriguez, Estrada, Shirley, Anaya-Flores, Chavez; No - None; Absent - Walterscheid; the motion carried 0:11:01 06:11:16 PM 4. Consider Approval of Temporary Use Application to allow for mobile sales (vending) on City Property at the Ray Anaya San Jose Park by Tacos El Chapo Applicant: Antonio Robles 0:11:15 06:11:30 PM Mr. Patterson Mr. Patterson explained this vendor was set up at Ray Anaya San Jose Plaza last year and are looking to renew it this year. He said there were no complaints to the Planning Department. Mr. Patterson said the Planning Department recommends approval of the request with the conditions that the applicant shall not disturb the peace with a loud speaker, megaphone, bell, music or other disruptive noise, the applicant shall limit vending from 12:00 p.m. to 10:00 p.m.as per their application request, approval of this application will be in effect from April 28, 2021 to December 31, 2021. 0:13:05 06:13:20 PM Motion The motion was made by Councilor Shirley and seconded by Councilor Anaya-Flores to approve Temporary Use Application to allow for mobile sales (vending) on City Property at the Ray Anaya San Jose Park by Tacos El Chapo Applicant: Antonio Robles 0:13:10 06:13:25 PM Vote The vote was as follows: Yes - Waters, Carter, Rodriguez, Estrada, Shirley, Anaya-Flores, Chavez; No - None; Absent - Walterscheid; the motion carried 0:13:25 06:13:40 PM 5. Consider Approval of Resolution 2021-21, a Resolution Opposing Amendments to the Gross Receipts and Compensation Tax Act 0:13:38 06:13:53 PM Mrs. Austin Mrs. Austin explained during the 2019 Legislative Session HB 6, which is titled Tax Changes was introduced and passed. She said HB 6 is a very extensive bill, it updates multiple tax programs including gross receipts tax, compensating tax, personal income tax and corporate income tax. She said this bill will go into effect in July 2021, which is the start of the new Fiscal Year. She said one particular update would allocate gross receipt taxes from internet purchases to local governments, currently gross receipt taxes from internet purchases are kept at the state level. She gave an example, if a Carlsbad resident made an internet purchase, the tax is allocated to the state. She said starting July 1, 2021 this tax would be allocated to the municipality, county and the state. She added that part of the bill is a good thing, however, there are unintended consequences. She explained the allocation is based on the destination of business method, which would mean Carlsbad would see a reduction in GRT due to businesses being outside the city limits. She said for Eddy and Lea Counties it would include any service related activities provided to the oil and gas, the potash and the nuclear disposal industries. She said the State will not provide information of where the internet sales are occurring and we are not able to see what the offset will be for the City of Carlsbad. She said a reasonable solution is for municipalities and counties to start receiving their fair share of internet sales, and to continue to receive GRT on service related activities. She explained a chart of GRT that was handed out. She said the chart shows in FY 20 the City collected almost $9 million in GRT revenues that will go away under the new system. She explained this was 13% of our revenue for the year 2020, this is a huge impact for the City of Carlsbad. She said there were about $262 million in mining type activities, and would mean the citizens of Carlsbad would need to purchase that amount from Amazon or Wal-Mart. She explained in FY 2021 is updated to current. She said we have only collected $2 million due to being in a down cycle. She said your general fund is operating in a $7 million deficit, and the $2 million is a significant amount. She said the impact if very important. She said Taxation and Revenue Department is holding a hearing on Thursday April 29, 2021, which she will be on the hearing with other financial people withing the city, anyone can join the hearing. She said she would like Taxation and Revenue Department to know we strongly oppose this and would like to be exempt or amendment in the next session to correct this. She is asking for approval of this resolution. Mayor Janway thank Mrs. Austin for all the work she has put into this and to mention he wasn't aware of this until about a week or so ago. Mrs. Austin said the way this bill was sold to the Legislature was that it would correct the problem with how taxes are collected on internet purchases. She said they didn't consider how it would affect rural communities, where the businesses are located here but doing a majority of business outside city limits. Mayor Janway said it was a surprise to the Legislators he talked with. Mayor Janway said we would pass this resolution on to other affected municipalities in the state to what help we can get. 0:21:00 06:21:15 PM Motion The motion was made by Councilor Rodriguez and seconded by Councilor Waters to approve Resolution 2021-21, a Resolution Opposing Amendments to the Gross Receipts and Compensation Tax Act 0:21:04 06:21:19 PM Vote The vote was as follows: Yes - Waters, Carter, Rodriguez, Estrada, Shirley, Anaya-Flores, Chavez; No - None; Absent - Walterscheid; the motion carried 0:21:22 06:21:37 PM 6. Council Committee Reports 0:21:25 06:21:40 PM Councilor Shirley Councilor Shirley said there will be an update from the Committee for street parking in the next few weeks. Mayor Janway thanked Councilor Shirley for the report. 0:21:56 06:22:11 PM Mayor Janway Mayor Janway asked if anyone in the audience would like to address the Council. No one appeared 0:22:02 06:22:17 PM 7. Adjourn 0:22:05 06:22:20 PM Motion The motion was made by Councilor Anaya-Flores and seconded by Councilor Waters to Adjourn 0:22:12 06:22:27 PM Vote The vote was as follows: Yes - Waters, Carter, Rodriguez, Estrada, Shirley, Anaya-Flores, Chavez; No - None; Absent - Walterscheid; the motion carried 0:22:32 06:22:49 PM Stop Audio Recording