*Map Name: Point Loma, California *Scale: 1:24,000 *Date of map: 1996 (2001 ed.) DPR 523B (9/2013) *Required information
Item 8.b
March 17, 2026 City of Coronado Page 144
State of California The Resources Agency
DEPARTMENT OF PARKS AND RECREATION
BUILDING, STRUCTURE, AND OBJECT RECORD
*Resource Name or #: (Assigned by
recorder) 941 B Ave *NRHP Status Code
DPR 523B (9/2013) *Required information
B1. Historic Name:
B2. Common Name:
B3. Original Use: B4. Present Use: Single family residence *B5. Architectural Style: Spanish Colonial Revival
*B6. Construction History: (Construction date, alterations, and date of alterations) The subject property was constructed in 1925 (City of Coronado 2021). Observed alterations include: installation of a security door (dates unknown). *B7. Moved? No Yes Unknown Date: Original Location:
*B8. Related Features:
B9a. Architect: b. Builder: J. E. Alcaraz
*B10. Significance: Theme Area Coronado
Period of Significance 1925 Property Type
Single family
residential Applicable Criteria
(Discuss importance in terms of historical or architectural context as defined by theme, period, and geographic scope. Also address integrity.)
B11. Additional Resource Attributes: (List attributes and codes)
*B12. References:
Building Permits, City of Coronado 2021.
B13. Remarks:
*B14. Evaluator:
*Date of Evaluation:
(This space reserved for official comments.)
Item 8.b
March 17, 2026 City of Coronado Page 145
State of California The Resources Agency Primary #
DEPARTMENT OF PARKS AND RECREATION HRI #
PRIMARY RECORD Trinomial
NRHP Status Code
Other Listings
Review Code Reviewer Date
*Resource Name or #: (Assigned by
recorder) 900-14 D Ave
P1. Other Identifier:
DPR 523A (9/2013) *Required information
*P2. Location: Not for Publication Unrestricted
*a. County San Diego and (P2c, P2e, and P2b or P2d. Attach a Location Map as necessary.) *b. USGS 7.5' Quad Point Loma Date 1996 (2001 ed.) T 17S ; R 03W; of of Sec 22 ; S B.M. c. Address 900-14 D Ave City Coronado Zip 92118
d. UTM: (Give more than one for large and/or linear
resources) Zone 11N , 1045917 mE/ 3631674.39 mN
e. Other Locational Data: (e.g., parcel #, directions to resource, elevation, decimal degrees, etc., as appropriate) APN: 5373311500; Elevation: 7 m amsl.; Lat/Long: (32.6877396996, -117.180678542) *P3a. Description: (Describe resource and its major elements. Include design, materials, condition, alterations, size, setting, and boundaries)
The subject property is a Spanish Colonial Revival-style, multiple family residential bungalow court with two detached garages built in 1927. The property contains four 1-story apartment buildings and one 2-story apartment building with stucco siding and a flat roof covered with rolled composition roofing and composition tile. Fenestration is irregular. The majority of the windows are replacement/vinyl one-over-one windows. Additional windows include the following:
horizontal sliding/replacement windows and wood casement windows. The main entry points are offset and feature wood paneled doors. The subject property has no chimneys. The subject property has stoop porches. The subject property has 2 outbuildings (garages). Architectural features present at the property include: scuppers and molded paneling. Observed alterations include: reroofing, replacement doors, and replacement windows (dates unknown). *P3b. Resource Attributes: (List attributes and
codes)
HP3. Multiple family property
P5a. Photograph or Drawing (Photograph required for buildings, structures, and objects.)
*P4. Resources Present: Building
Structure Object Site District
Element of District Other (Isolates, etc.)
P5b. Description of Photo: (view, date,
accession #) SW, February 13, 2026,
IMG_2565
*P6. Date Constructed/Age and Source:
Historic Prehistoric Both
1927 (City of Coronado 2021)
*P7. Owner and Address:
Hale Coronado Lp
1010 Pearl St Ste 2
La Jolla, CA 92037
*P8. Recorded by: (Name, affiliation, and
address)
Nicole Frank
605 3rd Street
Encinitas, CA 92024
*P9. Date Recorded: 07/30/2020
*P10. Survey Type: (Describe)
Intensive
*P11. Report Citation: (Cite survey report and other sources, or enter "none.") Dudek 2021. City of Coronado Historic Context Statement and Historic Resources Inventory. *Attachments: NONE Location Map Continuation Sheet Building, Structure, and Object Record Archaeological Record District Record Linear Feature Record Milling Station Record Rock Art Record Artifact Record Photograph Record Other (List):
Item 8.b
March 17, 2026 City of Coronado Page 146
State of California The Resources Agency Primary #
DEPARTMENT OF PARKS AND RECREATION HRI #
LOCATION MAP Trinomial
*Map Name: Point Loma, California *Scale: 1:24,000 *Date of map: 1996 (2001 ed.) DPR 523B (9/2013) *Required information
Item 8.b
March 17, 2026 City of Coronado Page 147
State of California The Resources Agency
DEPARTMENT OF PARKS AND RECREATION
BUILDING, STRUCTURE, AND OBJECT RECORD
*Resource Name or #: (Assigned by
recorder) 900-14 D Ave *NRHP Status Code
DPR 523B (9/2013) *Required information
B1. Historic Name:
B2. Common Name:
B3. Original Use: B4. Present Use: Multiple family residence *B5. Architectural Style: Spanish Colonial Revival
*B6. Construction History: (Construction date, alterations, and date of alterations) The subject property was constructed in 1927 (City of Coronado 2021). Observed alterations include: reroofing, replacement doors, and replacement windows (dates unknown). *B7. Moved? No Yes Unknown Date: Original Location:
*B8. Related Features:
B9a. Architect: b. Builder: Birney & Jenkins
*B10. Significance: Theme Area Coronado
Period of Significance 1927 Property Type
Multiple family
residential Applicable Criteria
(Discuss importance in terms of historical or architectural context as defined by theme, period, and geographic scope. Also address integrity.)
B11. Additional Resource Attributes: (List attributes and codes)
*B12. References:
Building Permits, City of Coronado 2021.
B13. Remarks:
*B14. Evaluator:
*Date of Evaluation:
(This space reserved for official comments.)
Item 8.b
March 17, 2026 City of Coronado Page 148
State of California The Resources Agency Primary #
DEPARTMENT OF PARKS AND RECREATION HRI #
PRIMARY RECORD Trinomial
NRHP Status Code
Other Listings
Review Code Reviewer Date
*Resource Name or #: (Assigned by
recorder) 966 F Ave
P1. Other Identifier:
DPR 523A (9/2013) *Required information
*P2. Location: Not for Publication Unrestricted
*a. County San Diego
and (P2c, P2e, and P2b or P2d. Attach a Location Map as necessary.)
*b. USGS 7.5' Quad Point Loma Date 1996 (2001 ed.) T 17S ; R 03W; of of Sec 22 ; S B.M. c. Address 966 F Ave City Coronado Zip 92118
d. UTM: (Give more than one for large and/or linear resources) Zone 11N , 1045659.26 mE/ 3631662.62 mN
e. Other Locational Data: (e.g., parcel #, directions to resource, elevation, decimal degrees, etc., as appropriate) APN: 5373212300; Elevation: 5 m amsl.; Lat/Long: (32.6877613649, -117.183420609) *P3a. Description: (Describe resource and its major elements. Include design, materials, condition, alterations, size, setting, and boundaries)
The subject property is a Craftsman-style, single family residence with a detached garage built in 1916. The 1-story building has wood shingle siding and a front gable roof covered with rolled composition roofing. Fenestration on the main elevation is irregular. The majority of the windows on the main elevation are wood one-over-one windows. The main entry point for the subject property is positioned center and features a wood screen door. The subject property has an exterior end chimney made of brick. The subject property has a front gabled partial projecting porch. The subject property has 1 outbuilding (garage). Architectural features present at the property include: vents under gable ends, exposed rafter tails, exposed beams, eave overhang, and barge board. Observed alterations include: reroofing (date unknown). *P3b. Resource Attributes: (List attributes and
codes)
HP2. Single family property
P5a. Photograph or Drawing (Photograph required for buildings, structures, and objects.)
*P4. Resources Present: Building
Structure Object Site District
Element of District Other (Isolates, etc.)
P5b. Description of Photo: (view, date,
accession #) NW, February 13, 2026,
IMG_2642
*P6. Date Constructed/Age and Source:
Historic Prehistoric Both
1916 (City of Coronado 2021)
*P7. Owner and Address:
Drehner, John L
2883 Spruce St
San Diego, CA 92104
*P8. Recorded by: (Name, affiliation, and
address)
Nicole Frank
605 3rd Street
Encinitas, CA 92024
*P9. Date Recorded: 07/29/2020
*P10. Survey Type: (Describe)
Intensive
*P11. Report Citation: (Cite survey report and other sources, or enter "none.") Dudek 2021. City of Coronado Historic Context Statement and Historic Resources Inventory. *Attachments: NONE Location Map Continuation Sheet Building, Structure, and Object Record Archaeological Record District Record Linear Feature Record Milling Station Record Rock Art Record Artifact Record Photograph Record Other (List):
Item 8.b
March 17, 2026 City of Coronado Page 149
State of California The Resources Agency Primary #
DEPARTMENT OF PARKS AND RECREATION HRI #
LOCATION MAP Trinomial
*Map Name: Point Loma, California *Scale: 1:24,000 *Date of map: 1996 (2001 ed.) DPR 523B (9/2013) *Required information
Item 8.b
March 17, 2026 City of Coronado Page 150
State of California The Resources Agency
DEPARTMENT OF PARKS AND RECREATION
BUILDING, STRUCTURE, AND OBJECT RECORD
*Resource Name or #: (Assigned by
recorder) 966 F Ave *NRHP Status Code
DPR 523B (9/2013) *Required information
B1. Historic Name:
B2. Common Name:
B3. Original Use: B4. Present Use: Single family residence *B5. Architectural Style: Craftsman
*B6. Construction History: (Construction date, alterations, and date of alterations) The subject property was constructed in 1916 (City of Coronado 2021). Observed alterations include: reroofing (date unknown).
*B7. Moved? No Yes Unknown Date: Original Location:
*B8. Related Features:
B9a. Architect: b. Builder: Louis R. Dilley
*B10. Significance: Theme Area Coronado
Period of Significance 1916 Property Type
Single family
residential Applicable Criteria
(Discuss importance in terms of historical or architectural context as defined by theme, period, and geographic scope. Also address integrity.)
B11. Additional Resource Attributes: (List attributes and codes)
*B12. References:
Building Permits, City of Coronado 2021.
B13. Remarks:
*B14. Evaluator:
*Date of Evaluation:
(This space reserved for official comments.)
Item 8.b
March 17, 2026 City of Coronado Page 151
City of Coronado
Historic Resources Inventory
TIER 2
APN Survey Tier Number Street Name Suffix Built Date Architect Builder Architectural Style Property Type 5360910100 Tier 2 900 01ST ST 1951 Unknown Lee & Leschorn Inc Tudor Revival Single Family Residential 5360911400 Tier 2 927 02ND ST 1923 Unknown L. P. Larsen Craftsman Single Family Residential 5360923900 Tier 2 1007 02ND ST 1927 Unknown Unknown California Bungalow Single Family Residential 5362112800 Tier 2 718 03RD ST 1912 Unknown Unknown False Front Commercial Warehouse 5362111400 Tier 2 719 04TH ST 1922 Unknown L. P. Larsen Craftsman Single Family Residential 5362221100 Tier 2 1013 04TH ST 1912 Unknown Unknown Other Single Family Residential 5362510200 Tier 2 1401 04TH ST 1912 Unknown Andrew Watson Woods Craftsman Single Family Residential 5363420200 Tier 2 408 05TH ST 1930 Unknown Lidell Bros. Spanish Colonial Revival Single Family Residential 5362814200 Tier 2 511 05TH ST 1926 Unknown Coronado Building Co. Spanish Colonial Revival Single Family Residential 5363522600 Tier 2 620 05TH ST 1912 Unknown Charles Rodgers Craftsman Single Family Residential 5362940200 Tier 2 801 05TH ST 1911 Unknown Andrew Watson Woods California Bungalow Single Family Residential 5363710400 Tier 2 920 05TH ST 1933 Unknown Unknown Spanish Colonial Revival Single Family Residential 5363121000 Tier 2 1211 05TH ST 1913 Unknown Louis R. Dilley Craftsman Single Family Residential 5364411700 Tier 2 516 06TH ST 1915 Unknown Andrew Watson Woods Craftsman Single Family Residential 5363623100 Tier 2 815 06TH ST 1928 Unknown Peter M. Holt Colonial Revival Multiple Family
Residential
5363730700 Tier 2 917 06TH ST 1964 Unknown Castle Homes Contemporary Multiple Family
Residential
5372120100 Tier 2 404 08TH ST 1929 Unknown Chris Cosgrove Spanish Colonial Revival Single Family Residential 5370521400 Tier 2 417 08TH ST 1933 Unknown
Edward H. Depew
(Depew Building Co.) Colonial Revival Single Family Residential 5370821301 Tier 2 1005 08TH ST 1918 Unknown John Edmund Alcaraz Queen Anne Single Family Residential 5371011200 Tier 2 1327 08TH ST 1912 Unknown Unknown Craftsman Single Family Residential 5373120400 Tier 2 616 09TH ST 1911 Unknown Unknown Craftsman Single Family Residential 5372611500 Tier 2 1315 09TH ST 1900 Unknown Unknown Dutch Colonial Revival Single Family Residential 5373021000 Tier 2 401 10TH ST 1914 Unknown Unknown Craftsman Single Family Residential 5374110500 Tier 2 422 10TH ST 1923 Unknown Peter M. Holt Colonial Revival Single Family Residential 5373111400 Tier 2 505 10TH ST 1907 Unknown Unknown Craftsman Single Family Residential 5373111600 Tier 2 517 10TH ST 1920 Unknown E. D. Park Realty Co. Vernacular Single Family Residential 5373130400 Tier 2 611 10TH ST 1925 Unknown Oscar W. Dorman Tudor Revival Single Family Residential 5374310200 Tier 2 708 10TH ST 1911 Unknown Pacific Building Co. Folk National Single Family Residential 5374310300 Tier 2 710 10TH ST 1909 Unknown Unknown Craftsman Single Family Residential 5373221400 Tier 2 811 10TH ST 1920 Unknown Louis R. Dilley Spanish Colonial Revival Single Family Residential 5373321400 Tier 2 1013 10TH ST 1925 Unknown George L. Stone Tudor Revival Single Family Residential 5374511000 Tier 2 1116 10TH ST 1906 Unknown Unknown Queen Anne Commercial Office 5374702600 Tier 2 1540 10TH ST 1900 Unknown Unknown Folk Victorian Single Family Residential 5362411800 Tier 2 344 A AVE 1912 Unknown Unknown California Bungalow Single Family Residential 5362412100 Tier 2 352 A AVE 1909 Unknown Unknown California Bungalow Single Family Residential 5363911700 Tier 2 544 A AVE 1910 Unknown Reed & Kappner Craftsman Single Family Residential 5363924600 Tier 2 547 A AVE 1910 Unknown Unknown Craftsman Single Family Residential 5371020700 Tier 2 729 A AVE 1909 Unknown Unknown Pueblo Revival Single Family Residential 5372612300 Tier 2 834 A AVE 1892 Unknown Unknown Queen Anne Single Family Residential 5372621800 Tier 2 869 A AVE 1908 Unknown Unknown Folk Victorian Single Family Residential 5371023500 Tier 2 729 ADELLA LN 1912 Unknown Unknown Shingle Single Family Residential 5372620500 Tier 2 808 ADELLA AVE 1891 Unknown Unknown Folk Victorian Single Family Residential 5361910700 Tier 2 353 ALAMEDA BLVD 1928 Unknown Chris Cosgrove Spanish Colonial Revival Single Family Residential 5362710700 Tier 2 441 ALAMEDA BLVD 1930 Unknown Dennstedt Building Co. Spanish Colonial Revival Single Family Residential 5362410900 Tier 2 337 B AVE 1912 Unknown Andrew Watson Woods Craftsman Single Family Residential 5362411000 Tier 2 339 B AVE 1912 Unknown Andrew Watson Woods Craftsman Single Family Residential 5362322000 Tier 2 340 B AVE 1936 Unknown V. R. Shelley Tudor Revival Single Family Residential 5362321600 Tier 2 360 B AVE 1928 Unknown F. E. Young Spanish Colonial Revival Single Family Residential 5362321500 Tier 2 370 B AVE 1913 Unknown Unknown Craftsman Single Family Residential 5362322700 Tier 2 376 B AVE 1908 Unknown Unknown Craftsman Single Family Residential 5363821500 Tier 2 560 B AVE 1925 Unknown Oscar W. Dorman Tudor Revival Single Family Residential 5370922600 Tier 2 772 B AVE 1911 Unknown Unknown Craftsman Single Family Residential 5372610600 Tier 2 827 B AVE 1890 Unknown Unknown Folk National Single Family Residential 5372522800 Tier 2 850 B AVE 1913 Unknown
San Diego Construction
Co. Craftsman Single Family Residential
5373510700 Tier 2 941 B AVE 1925 Unknown J. E. Alcaraz Spanish Colonial Revival Single Family Residential 5372721200 Tier 2 940 BALBOA AVE 1955 Unknown
H. S. Gibbs (Gibbs
Construction Co.) Ranch Single Family Residential
5361612400 Tier 2 228 C AVE 1892 Unknown Unknown Folk Victorian Single Family Residential 5362311400 Tier 2 360 C AVE 1911 Unknown Unknown Craftsman Single Family Residential 5363820300 Tier 2 511 C AVE 1938 Unknown Dennstedt Building Co. Tudor Revival Single Family Residential This document is organized by Street Name.
Online version is searchable at:
https://www.projectcoronado.org/citywide-historic-resource-survey 1 Adopted October 21, 2025
Effective December 4, 2025
Attachment 2
Item 8.b
March 17, 2026 City of Coronado Page 152
City of Coronado
Historic Resources Inventory
TIER 2
APN Survey Tier Number Street Name Suffix Built Date Architect Builder Architectural Style Property Type 5363811900 Tier 2 550 C AVE 1933 Unknown Paul Mirable Spanish Colonial Revival Single Family Residential 5363812000 Tier 2 560 C AVE 1912 Unknown Unknown Craftsman Single Family Residential 5364700300 Tier 2 615 C AVE 1913 Unknown Unknown Craftsman Single Family Residential 5364700400 Tier 2 621 C AVE 1919 Unknown Unknown Craftsman Single Family Residential 5370920600 Tier 2 737 C AVE 1911 Unknown Unknown Craftsman Single Family Residential 5372520900 Tier 2 855 C AVE 1892 Unknown Unknown Craftsman Single Family Residential 5372521100 Tier 2 869 C AVE 1914 Unknown Andrew Watson Woods Craftsman Single Family Residential 5374511100 Tier 2 1000 C AVE 1946 Unknown L. C. Anderson Streamline Moderne Commercial Bldg 5364130900 Tier 2 630 CABRILLO AVE 1955 Unknown
H. S. Gibbs (Gibbs
Construction Co.) Ranch Single Family Residential
5361520800 Tier 2 263 D AVE 1962 Unknown Robert Durnal Contemporary Multiple Family
Residential
5362212200 Tier 2 366 D AVE 1936 Unknown R. E. Erwin Building Co. Spanish Colonial Revival Single Family Residential 5363020900 Tier 2 451 D AVE 1927 Unknown George L. Stone Spanish Colonial Revival Single Family Residential 5373311500 Tier 2 900 D AVE 1926 Unknown Birney and Jenkins Spanish Colonial Revival Multiple Family
Residential
5373312300 Tier 2 964 D AVE 1900 Unknown Unknown Folk Victorian Commercial Hotel 5361421600 Tier 2 276 E AVE 1908 Unknown Unknown Craftsman Single Family Residential 5370810500 Tier 2 717 E AVE 1892 Unknown Unknown Folk Victorian Single Family Residential 5373222300 Tier 2 936 E AVE 1924 Unknown Oscar W. Dorman Mediterranean Revival Single Family Residential 5374311200 Tier 2 1021 ENCINO ROW 1920 Unknown Louis R. Dilley Beach Cottage Single Family Residential 5362113000 Tier 2 300 F AVE 1914 Unknown Unknown Craftsman Single Family Residential 5362120500 Tier 2 319 F AVE 1926 Unknown Peter M. Holt Spanish Colonial Revival Single Family Residential 5370711200 Tier 2 712 F AVE 1891 Unknown Craftsman Single Family Residential 5372340200 Tier 2 868 F AVE 1915 Unknown Louis R. Dilley Craftsman Single Family Residential 5373212300 Tier 2 966 F AVE 1916 Unknown Louis R. Dilley Craftsman Single Family Residential 5373212400 Tier 2 972 F AVE 1921 Unknown Unknown Pueblo Revival Single Family Residential 5374322200 Tier 2 1011 F AVE 1968 Unknown C. T. Stahl Spanish Colonial Revival Single Family Residential 5374311700 Tier 2 1016 F AVE 1911 Unknown Unknown Craftsman Single Family Residential 5360810800 Tier 2 155 G AVE 1938 Unknown Dennstedt Building Co. Spanish Colonial Revival Single Family Residential 5373131100 Tier 2 950 G AVE 1920 Unknown Oscar W. Dorman Craftsman Single Family Residential 5375100300 Tier 2 1105 G AVE 1914
William Templeton
Johnson Sidney D. Chapin Minimal Traditional Single Family Residential 5362520600 Tier 2 318 GLORIETTA PL 1936
Hathaway - Washington
Co. Unknown Colonial Revival Single Family Residential
5365003200 Tier 2 636 GLORIETTA BLVD 1968 Matteson & Snook Ralph D. Nelson Contemporary Single Family Residential 5371621700 Tier 2 716 GLORIETTA BLVD 1929 Unknown Chris Cosgrove Spanish Colonial Revival Single Family Residential 5371900300 Tier 2 911 GUADALUPE AVE 1947 Unknown John Washington Spanish Colonial Revival Single Family Residential 5360720600 Tier 2 143 H AVE 1948 Unknown M. R. McColley Minimal Traditional Single Family Residential 5362012200 Tier 2 320 H AVE 1927 Unknown Oscar W. Dorman Tudor Revival Single Family Residential 5362812200 Tier 2 428 H AVE 1928 Unknown L. C. Anderson Spanish Colonial Revival Single Family Residential 5362812000 Tier 2 444 H AVE 1922 Unknown Alfred Laing Craftsman Single Family Residential 5362820900 Tier 2 449 H AVE 1944 Unknown Palmer Bilt Homes Minimal Traditional Single Family Residential 5362811500 Tier 2 474 H AVE 1924 Unknown Alfred Mansel Southard Craftsman Single Family Residential 5363520400 Tier 2 521 H AVE 1909 Unknown Unknown Craftsman Single Family Residential 5363512500 Tier 2 560 H AVE 1941 Unknown Jenkins Construction Co. Minimal Traditional Single Family Residential 5364412900 Tier 2 668 H AVE 1913 Unknown Unknown Craftsman Single Family Residential 5373120800 Tier 2 915 H AVE 1927 Unknown Unknown Folk National Single Family Residential 5373121100 Tier 2 933 H AVE 1911 Unknown Andrew Watson Woods Craftsman Single Family Residential 5361221000 Tier 2 260 I AVE 1950 Unknown Alfred Laing Contemporary Single Family Residential 5361220800 Tier 2 272 I AVE 1935 Unknown
Edward H. Depew
(Depew Building Co.) Colonial Revival Single Family Residential 5373021700 Tier 2 944 I AVE 1914 Unknown Andrew Watson Woods Craftsman Single Family Residential 5373021400 Tier 2 966 I AVE 1937 Unknown
Edward H. Depew
(Depew Building Co.) Colonial Revival Single Family Residential 5374401800 Tier 2 1016 ISABELLA AVE 1936 Unknown R. E. Erwin Building Co. Tudor Revival Commercial Office 5374404600 Tier 2 1030 ISABELLA AVE 1958 Unknown Henry DeMenge Ranch Multiple Family
Residential
5375320400 Tier 2 1033 ISABELLA AVE 1923 Unknown John Edmund Alcaraz Beach Cottage Multiple Family
Residential
5362712400 Tier 2 424 J AVE 1923 Unknown J. H. Fifield Spanish Colonial Revival Single Family Residential 5362711900 Tier 2 450 J AVE 1931 Unknown H. H. Grazer Folk Victorian Single Family Residential 5370520300 Tier 2 711 J AVE 1926 Unknown Oscar W. Dorman Spanish Colonial Revival Single Family Residential 5370520500 Tier 2 727 J AVE 1934 Unknown Chris Cosgrove Vernacular Single Family Residential This document is organized by Street Name.
Online version is searchable at:
https://www.projectcoronado.org/citywide-historic-resource-survey 2 Adopted October 21, 2025
Effective December 4, 2025
Item 8.b
March 17, 2026 City of Coronado Page 153
City of Coronado
Historic Resources Inventory
TIER 2
APN Survey Tier Number Street Name Suffix Built Date Architect Builder Architectural Style Property Type 5372120200 Tier 2 811 J AVE 1925 Unknown Oscar W. Dorman Altered Beyond
Recognition Single Family Residential
5364900400 Tier 2 620 MARGARITA AVE 1929 Unknown Dennstedt Building Co. Spanish Colonial Revival Single Family Residential 5365000800 Tier 2 639 MARGARITA AVE 1948 Unknown Arthur Old Minimal Traditional Single Family Residential 5364901900 Tier 2 680 MARGARITA AVE 1950 Unknown E. C. Markham Co. Minimal Traditional Single Family Residential 5371620300 Tier 2 711 MARGARITA AVE 1939 Unknown Alfred Laing Spanish Colonial Revival Single Family Residential 5371620400 Tier 2 715 MARGARITA AVE 1892 Unknown Unknown Folk Victorian Single Family Residential 5371620800 Tier 2 737 MARGARITA AVE 1939 Unknown H. Q. Smith Tudor Revival Single Family Residential 5374900800 Tier 2 571 MARINA AVE 1958 Unknown John N. Lavery Contemporary Single Family Residential 5370830100 Tier 2 755 OLIVE AVE 1930 Unknown E. A. Peterson Spanish Colonial Revival Single Family Residential 5372312100 Tier 2 848 OLIVE AVE 1912 Unknown Unknown Craftsman Single Family Residential 5373131300 Tier 2 937 OLIVE AVE 1892 Unknown Unknown Shingle Single Family Residential 5373130300 Tier 2 943 OLIVE AVE 1924 Unknown Oscar W. Dorman Spanish Colonial Revival Single Family Residential 5373130200 Tier 2 953 OLIVE AVE 1924 Unknown Oscar W. Dorman Spanish Colonial Revival Single Family Residential 5373111700 Tier 2 964 OLIVE AVE 1922 Unknown Dwyer and Clark Pueblo Revival Single Family Residential 5374122800 Tier 2 1133 OLIVE LANE 1919 Unknown Louis R. Dilley Beach Cottage Single Family Residential 5360922200 Tier 2 134 ORANGE AVE 1913 Unknown W. C. Constable Contr. Brick Commercial Commercial Bldg 5363022600 Tier 2 400 ORANGE AVE 1954 Unknown General Petroleum Co. Brick Commercial Commercial Auto Related 5363812700 Tier 2 525 ORANGE AVE 1942 Unknown Walter Vestal Streamline Moderne Multiple Family
Residential
5363810800 Tier 2 529 ORANGE AVE 1916 Unknown Unknown Mission Revival Commercial Bldg 5363721300 Tier 2 530 ORANGE AVE 1929 Unknown Fred Pence Craftsman Single Family Residential 5372422100 Tier 2 800 ORANGE AVE 1940 Unknown F. E. Young Mid Century Modern Commercial Bldg 5372510700 Tier 2 849 ORANGE AVE 1955 Unknown Walter Vestal Art Deco Commercial Bldg 5372422300 Tier 2 868 ORANGE AVE 1962 Unknown Safeway Stores Mid Century Modern Commercial Retail 5372421300 Tier 2 874 ORANGE AVE 1929 Unknown Weston Hicks Spanish Colonial Revival Commercial Retail 5373410800 Tier 2 949 ORANGE AVE 1920 Unknown Sidney D. Chapin False Front Commercial Commercial Retail 5375510700 Tier 2 1114 ORANGE AVE 1935 Unknown T. E. Sharp Brick Commercial Commercial Retail 5375612000 Tier 2 1315 ORANGE AVE 1956 Unknown C. F. Van Gunden Mid Century Modern Commercial Hotel 5363730900 Tier 2 546 PALM AVE 1914 Unknown Peter M. Holt Craftsman Single Family Residential 5362420100 Tier 2 303 POMONA AVE 1922 Unknown E. J. Perrson Craftsman Single Family Residential 5364903400 Tier 2 661 POMONA AVE 1928 Unknown Dennstedt Building Co. Spanish Colonial Revival Single Family Residential 5371403300 Tier 2 933 POMONA AVE 1937 Unknown Harold L. Caulkins Spanish Colonial Revival Single Family Residential 5371520100 Tier 2 1600 SAN LUIS REY AVE 1939 Unknown Dennstedt Building Co. Minimal Traditional Single Family Residential 5365001800 Tier 2 1701 SAN LUIS REY AVE 1941 Unknown Walter Vestal Spanish Colonial Revival Single Family Residential 5361722700 Tier 2 234 SOLEDAD PL 1906 Unknown Unknown Italianate Single Family Residential This document is organized by Street Name.
Online version is searchable at:
https://www.projectcoronado.org/citywide-historic-resource-survey 3 Adopted October 21, 2025
Effective December 4, 2025
Item 8.b
March 17, 2026 City of Coronado Page 154
Date: 2/25/2026 - Last saved by: ckubacki - Path: Z:\Projects\j1166100\MAPDOC\HRI\FigureX_CityOfCoronado_HRI_Survey_ParcelTierRanking_Detail.mxd Naval Base
Coronado
Sea North Air
Golf Course
City of Coronado
Alameda Blvd
S O St
P
i
n
e
St
Country Club Ln
S N Ave
5th St
OceanDr
Wright Rd
E F Rd
E G Rd H E Rd
E I Rd
F Ave
S M Ave
Alder
S
t
Tolit
a
Ave
Acacia Way
Encino Row
Carob Way
M
a
r
i
n
a
Ave
7th St
Duffer Ln
E J Rd
H Ave
Olive Ave 9th St 10th St G Ave 6th St
Quentin Roosevelt Blvd
I Ave
Sherman Rd
Ocean Blvd Balboa Ave C
8th St
abrillo Ave
J Ave
Coronado Ave
Rogers Rd
Survey Extent Detail
City of Coronado Historic Resources Inventory Survey Findings SOURCE: SANDAG 2019, Maxar 2023, OpenStreetMap 0 250 500Feet
City of Coronado Boundary
Project Study Area
Survey Tier
Tier 1
Tier 2
Tier 3
Attachment 3
Item 8.b
March 17, 2026 City of Coronado Page 155
Date: 2/25/2026 - Last saved by: ckubacki - Path: Z:\Projects\j1166100\MAPDOC\HRI\FigureX_CityOfCoronado_HRI_Survey_ParcelTierRanking_Detail.mxd Cutler
Field
Naval Base
Coronado
Palm
Park
Triangle
Park
Centennial
Park
City of Coronado
3rd St
4th St
Orange Ave
1st St
Alameda Blvd
2nd St
Wright Ave
A Ave
McCain Blvd
S M Ave
RogersRd
S
NAve
1st St
B Ave
S R Ave
Palm Ave
8th St
7th St
Cabrillo Ave
Balboa Ave
Coronado Ave
C Ave
S O St
Country Club Ln
F Ave
G Ave
E Ave
D Ave
H Ave
6th St
5th St
I Ave
J Ave
75 282
Survey Extent Detail
City of Coronado Historic Resources Inventory Survey Findings SOURCE: SANDAG 2019, Maxar 2023, OpenStreetMap
0 250 500Feet
City of Coronado Boundary
Project Study Area
Survey Tier
Tier 1
Tier 2
Tier 3
Item 8.b
March 17, 2026 City of Coronado Page 156
Date: 2/25/2026 - Last saved by: ckubacki - Path: Z:\Projects\j1166100\MAPDOC\HRI\FigureX_CityOfCoronado_HRI_Survey_ParcelTierRanking_Detail.mxd er
d
m
k
Triangle
Park
Tidelands
Park
Centennial
Park
Sharp
Coronado
Hospital
Coronado
Police
Department
Spreckels
Park
Coronado
High School
Coronado
Public
Library
Tidelands
Park
City of Coronado
3rd St
4th St
Orange Ave
1st St
Glorietta Blvd
2nd St
Terminal St
8th St
Palm Ave
Olive Ave
Escondido Ln
A Avenue Ln
Prospect Pl
Soledad Pl
El Chico Ln
Glorietta Pl
Pendleton Rd
Gloriet ta
Rd
I Ave
Marine Way
Pomona Ave
Mullinex Dr
Adella Ln
H Ave
7th St
A Ave
G Ave
F Ave
E Ave
6th St
B Ave
5th St
C Ave
D Ave
75 282
Survey Extent Detail
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Field
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Spreckels
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Coronado
High School
Coronado
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Library
Star
Park
Mathewson
Park
City of Coronado
3rd St
4th St
Orange Ave
Pomona Ave
Pine St
Alameda Blvd
7th St
Country Club Ln
Glorietta Blvd
Churchill Pl
Miguel Ave
Maria Pl
Guadalupe Ave
ParkPl
Flora Ave
Loma Ave
Alder St
San Luis
Rey Ave
Acacia Way
Encino Row
Carob Way
StarParkCir
Marina Ave
Isabella Ave
Ynez Pl
Tolita Ave
Palm Ave
Adella Ave
Adella Ln
Balboa Ave
S O St
E Ave
Cabrillo
Ave
Cor o n ado Ave
I Ave
J Ave
Olive Ave
H Ave
G Ave
F Ave
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D Ave
A Ave
Ocean Blvd
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B Ave
10th St
8th St
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Mathewson
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Orange Ave
Silver Strand Blvd
Churchil l Pl
Pomona Ave
Pine St
Alameda Blvd
Rh Dana Pl
7th St
GloriettaBlvd
Miguel Ave
S O St
Acacia Way
Maria Pl
Guadalup e Ave
ParkPl
Flora Ave
Loma Ave
Avenida del Mu ndo
Cabrillo Ave
Alder St
San Luis Rey Ave
Encino Row
Carob Way
Star Park Cir
Marina Ave
Isabella Ave
I Ave
Co ronado Ave
J Ave
Tolita Ave
H Ave
Ynez Pl
6th St
Adella Ave
Adella Ln
D Ave
Strand Way
E Ave
G Ave
F Ave
C Ave
Olive Ave
A Ave
B Ave
8th St
Ocean Blvd
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Golf Course
Mathewson
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Tidelands
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Vetter
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City of Coronado
Orange Ave
4th St
Churchill Pl Rh DanaPl
Cajon Pl
7th St
Pomona Ave
Glorietta Blvd
Vista Pl
E Ave
Loma Ave
Maria Pl
Olive Ave
Pendleton Rd
Bay Ci r
Visalia Row
Monterey Ave
Strand Way
Ynez Pl
Mullinex Dr
Miguel Ave
Adella Ave
S an Luis
Rey
Ave
Gu adalupe Ave
5th St
9th St
D Ave
8th St
10th St
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6th St
C Ave
A Ave
B Ave
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Centennial
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Cutler
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High School
Central
Beach
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Quentin Roosevelt Blvd
Wright Rd
I sabellaAve
Carob Way
2nd St
S M Ave
S N Ave
Marni
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TolitaAve
Ad el al Ave
Ynez P l
Gowan St
Pine S
t
Mullinex Dr
S R Ave
Wright Ave
Palm Ave
San Luis Rey Ave
Pomona Ave
Sherman Rd
Guadalupe Ave
Strand Way
Balboa Ave
Adella Ln
McCain Blvd
Cabrillo Ave
Margarita Ave
Olive Ave
E Ave
Country Club Ln
G Ave
F Ave
Coronado Ave
Rogers R d
Alameda Blvd
A Ave
7th St
9th St
G lo riet ta Blvd
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St
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J Ave
8th St
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CITY COUNCIL STAFF REPORT
FY 2027 - 2031 Wastewater Rates: Direction to Mail Notices of Public Hearing to be held May 5, 2026 to Consider Approval of Updated Rates for Wastewater Services
RECOMMENDATION
Receive the FY 2027 Wastewater Fee Study, provide direction on the five-year rate structure for future consideration, set a Public Hearing on May 5, 2026 for consideration of updated rates for wastewater services effective July 1, 2026 with increases each July 1st through 2030, and, direct the City Manager to mail the notice of public hearing and proposed rates to all properties..
BACKGROUND
The City of Coronado provides the essential public service of wastewater collection, conveyance, and treatment services to its residential and non-residential customers within the City, including United States Navy facilities. The City directly operates and maintains 17 sewer pump stations and more than 45 miles of underground sewer pipeline, and, on average, the City conveys from its customers approximately 2.35 million gallons per day of sewage to the San Diego Metropolitan Wastewater Joint Powers Authority (Metro JPA) for transportation and treatment.
The City is authorized to charge a fee to its wastewater customers in an amount that is no more than the City’s estimated proportionate costs of providing the service to each customer. These legal requirements are established by the 1996 voter-approved constitutional amendment under Proposition 218 (California Constitution Articles XIII C and XIII D). Under Proposition 218, the City’s wastewater rates are considered a fee for a “property related service,” and:
(1) Revenues derived from the rates shall not exceed the funds required to provide the property related service (wastewater service).
(2) Revenues derived from the rates shall not be used for any purpose other than that for which the fee or charge was imposed.
(3) The amount of the rates shall not exceed the proportional cost of the service attributable to the parcel.
(4) No rates may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question. Rates based on potential or future use of a service are not permitted.
(5) No rates may be imposed for general governmental services including, but not limited to, police, fire, ambulance or library services, where the service is available to the public at large in substantially the same manner as it is to property owners.
ANALYSIS
The City documents its costs of providing wastewater services and calculates the proportionate allocation of those costs through cost of service and rate studies. The City last conducted such studies in 2014 when the City Council approved Ordinance No. 2045, codified in Coronado Municipal Code Section
60.08.050, which set the wastewater rates from July 1, 2014 through July 1, 2018.
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The City engaged a professional rate consultant (Raftelis) to evaluate the City’s costs of providing wastewater services as compared to revenue received from current wastewater rates charged to customers, and to provide recommended adjustments to rates in order to ensure that rate revenue adequately covered the City’s costs of providing the service in accordance with Proposition 218. Raftelis prepared the Fiscal Year (FY) 2027 Wastewater Rate Study (Attachment 1) that concluded that adjustments are warranted for the City’s wastewater rates, in the amounts shown on the Proposed Rates FY 2027-2031 (Attachment 2), in order to adequately cover the City’s costs of providing wastewater services to its customers. The proposed rate updates include annual updates to wastewater rates after the initial effective date on July 1, 2026, through July 1, 2030.
Under Proposition 218, in addition to the substantive requirements for estimating costs and calculating rates as summarized above, the City is also required to comply with procedural requirements to inform and engage property owners in the review of the proposed rate updates. In general, those requirements include mailing a notice of public hearing to all property owners (or tenants with an obligation to pay City wastewater bills) at least 45 days prior to a public hearing. In the notice (Attachment 3), the owners are apprised of basic elements of the proposed update to the wastewater rates, where to obtain additional information, and how to submit a “written protest” up until the time the public hearing is closed. If the City receives written protests from owners representing a majority of parcels served by the City’s wastewater system, the City is not authorized to approve the rate update.
Thus, staff recommends that City Council direct staff to mail the 45-day public hearing requirement under Proposition 218, to schedule the public hearing to be held on May 5, 2026, to consider the proposed update to wastewater rates.
FISCAL IMPACT
If the proposed rates are approved, it will result in an annual increase in the overall revenue received from wastewater rates of 8.5%. Of note, year one of the fee study will calibrate the charges per customer class based upon the most current data available and Raftelis’ analysis of the appropriate charge per customer class. The increased rates will result in the City meeting its revenue requirement that includes all anticipated operations, capital improvement, debt service and operations reserves for the five-year period.
ALTERNATIVE
The City Council may direct staff to return to a future meeting with a recommended alternative wastewater rate structure, including an analysis of impacts of reduced rate revenue on the City’s ability to provide wastewater services.
CALIFORNIA ENVIRONMENTAL QUALITY ACT
This action is not subject to CEQA.
PUBLIC NOTICE
No public notice is required for this item.
ATTACHMENTS
1. FY 2027 Rate Study
2. Proposed Rates FY 2027-2031
3. Draft Notice of Public Hearing for Proposed Wastewater Rates (Effective July 1, 2026 through July 1, 2030)
Submitted By: Public Services and Engineering / Denise Johnson Item 8.c
March 17, 2026 City of Coronado Page 163
FY 2027 Wastewater Rate Study
February 16, 2026
CITY OF
Coronado
Attachment 1
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3755 S. Capital of Texas Highway
Suite 245
Austin, TX 78704
www.raftelis.com
February 16, 2026
Ms. Denise Johnson
Administration Manager
City of Coronado
101 B Avenue
Coronado, CA 92118
Subject: Fiscal Year (FY) 2027 Wastewater Rate Study Report Dear Ms. Johnson,
Raftelis is pleased to provide this Wastewater Rate Study Report for the City of Coronado (City). The major objectives of the sewer rate study included:
• The development of a Wastewater Enterprise Fund financial plan and revenue requirement forecast for the five-year period FY 2027 through FY 2031.
• The completion of a cost of service study service study that estimates the cost of providing service to each of the City’s wastewater customer classes.
• Proposed rates for the period FY 2027 through FY 2031 developed in a manner that complies with the intent of Proposition 218.
• Recommendations regarding potential alternative wastewater rate structures.
The report summarizes the key findings and recommendations associated with the study. It has been a pleasure working with you, and we thank you and the City staff for the support provided during the course of this study.
Sincerely,
John J. Wright
Senior Manager
Attachment 1
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Table of Contents
1. EXECUTIVE SUMMARY ............................................................ 1 I. Financial Plan Summary............................................................................................1 II. Cost of Service Study Summary ...............................................................................2 III. Summary of Proposed Rates ....................................................................................3 IV. Recommendation .......................................................................................................5
2. INTRODUCTION ........................................................................ 6 I. Study Background .....................................................................................................6 II. The Coronado Wastewater System ..........................................................................6 III. Legal Requirements ...................................................................................................6 IV. The Rate Setting Methodology..................................................................................7 V. Compliance.................................................................................................................7
3. FINANCIAL PLANNING ............................................................. 8 I. The Financial Planning Process ...............................................................................8 II. Projected Customers .................................................................................................9 III. Projected Customer Water Consumption ................................................................9 IV. Projected Revenue at Current Rates ......................................................................10 V. Projected Miscellaneous Non-Rate Revenues.......................................................11 VI. Projected Operating Expenses ...............................................................................11 VII. Projected Capital Improvement Expenditures.......................................................12 VIII. Projected FY 2027 – FY 2031 Financial Plan..........................................................13
4. COS ANALYSIS ....................................................................... 15 I. Cost of Service Methodology ..................................................................................15 II. Revenue Requirement Cost Components..............................................................15 III. Allocation To Cost Causation Components...........................................................16 IV. Determination of Customer Class Units Of Service ..............................................18 V. Allocation of Inflow And Infiltraton.........................................................................21 VI. Unit Cost Of Service for Cost Causation Components.........................................22 VII. Customer Class Revenue Requirement ................................................................. 23
5. RATE CALCULATION ............................................................. 25 Attachment 1
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I. Rate Calculation For Non-Navy Customers ...........................................................25 II. Rate Calculation for Navy Customers ....................................................................25 III. Summary FY 2027 Rate Comparison......................................................................26 IV. Comparison of Proposed SFU and MFU Rates......................................................27 V. Proposed Rates Through FY 2031 ..........................................................................28
6. ALTERNATIVE RATE STRUCTURES .................................... 29 I. Consideration of Alternative Rate Structures........................................................29 II. Recommendation .....................................................................................................29 Attachment 1
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List of Tables
Table 1-1 Proposed Annual Revenue Adjustments........................................................................................ 1 Table 1-2 Financial Plan and Revenue Requirement Projection................................................................... 2 Table 1-3 Cost of Service Study Results ......................................................................................................... 3 Table 1-4 Proposed FY 2027 Rates................................................................................................................... 4 Table 1-5 Proposed Rates FY 2027 - FY 2031.................................................................................................. 4 Table 3-1 Projected Customer Growth............................................................................................................. 9 Table 3-2 Projected Customer Water Consumption..................................................................................... 10 Table 3-3 Projected Revenue at Current Rates............................................................................................. 11 Table 3-4 Projected Miscellaneous Non-Rate Revenues ............................................................................. 11 Table 3-5 Projected Operating Expenses ...................................................................................................... 12 Table 3-6 Operating Expense Inflation Factors............................................................................................. 12 Table 3-7 Projected Capital Improvement Expenditures ............................................................................. 13 Table 3-8 Financial Plan and Revenue Requirement Projection................................................................. 14 Table 4-1 FY 2027 Revenue Requirement Cost Components...................................................................... 15 Table 4-2 Cost Causation Components ......................................................................................................... 16 Table 4-3 Allocation of Operating Costs to Cost Causation Components ................................................ 16 Table 4-4 Operating Cost Transportation Flow Allocation .......................................................................... 17 Table 4-5 Operating Cost Metro JPA Treatment Cost Allocation(1) ............................................................ 17 Table 4-6 Allocation of Capital Costs to Cost Causation Components ..................................................... 17 Table 4-7 Allocation of Miscellaneous Non-Rate Revenues to Causation Components ......................... 18 Table 4-8 Summary of Allocations to Cost Causation Components.......................................................... 18 Table 4-9 Key Assumptions in the Units of Service Determination............................................................ 19 Table 4-10 Estimated Customer Flow Contributions to the Metro JPA...................................................... 20 Table 4-11 Estimated Customer Strength Contributions to the Metro JPA............................................... 20 Table 4-12 Units of Service After the Allocation of Inflow and Infiltration................................................. 21 Table 4-13 Unit Cost of Service Calculation.................................................................................................. 23 Table 4-14 Calculation of the FY 2027 Customer Class Revenue Requirement ....................................... 23 Table 5-1 Rate Calculation for Non-Navy Customers................................................................................... 25 Table 5-2 FY 2027 Navy Rate Calculation...................................................................................................... 26 Table 5-3 FY 2027 Detailed Rate Comparison............................................................................................... 27 Table 5-4 SFU and MFU GPD per Dwelling Unit (2015 Master Plan)........................................................... 28 Table 5-5 Proposed Rates Through FY 2030................................................................................................. 28 Table 6-1 Hypothetical Wastewater Rate Structure...................................................................................... 29 Attachment 1
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Abbreviations List
ADU Accessory Dwelling Units
APN Assessor’s Parcel Number
BOD Biochemical Oxygen Demand
Cal Am California American Water Company
COD Chemical Oxygen Demand
CUSD Coronado Unified School District
CCF* Centum Cubic Feet
CIP Capital Improvement Program
COS Cost of Service
FY Fiscal Year
G&A General & Administrative
gpd Gallons per day
HCF* Hundred Cubic Feet
LACSD Los Angeles County Sanitation District
O&M Operations & Maintenance
Metro JPA San Diego Metropolitan Wastewater Joint Powers Authority MFU Multi-family Unit
MG Million Gallons
mg/l Milligrams per Liter
Navy NAB Navy Naval Amphibious Base
Navy NASNI Navy Naval Air Station North Island
OPEX Operating Expenses
SANDAG San Diego Association of Governments
SFU Single Family Unit
TSS Total Suspended Solids
WEF Water Environment Federation
Attachment 1
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City of Coronado FY 2027 Wastewater Rate Study
1 1. Executive Summary
I. FINANCIAL PLAN SUMMARY
The Wastewater Enterprise Fund financial plan was developed for the 5-year period FY 2027 - FY 2031. If current wastewater rates remain unchanged (i.e., if there are no rate increases) projected Wastewater Enterprise Fund cash reserves will be inadequate as they are drawn down to sustain operations. In FY 2030, ending cash reserves will fall below a minimum target equivalent to 180 days (50%) of annual operating expenses and in FY 2031 ending cash reserves will fall below $0.
It is recommended that total system rate revenues be increased by 8.5% annually in FY 2027 - FY 2031. Table 1-1 shows these proposed percentage increases. It is important to note that an 8.5% total system rate revenue increase does not mean that each customer will experience an 8.5% bill increase. The actual bill increases/decreases experienced by customers will depend on their customer class cost of service and their individual usage characteristics.
Table 1-1 Proposed Annual Revenue Adjustments
Item FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Annual Increase 8.5% 8.5% 8.5% 8.5% 8.5%
Month Effective July July July July July
Table 1-2 shows a summary financial plan and revenue requirement forecast for the period FY 2027 – FY 2031. The key items to note in Table 1-2 include:
• Line 1 shows that the proposed 8.5% annual revenue increases in FY 2027 through FY 2031. • Line 5 shows the projected FY 2027 - FY 2031 revenue requirement from rates (i.e., projected required rate revenue). In FY 2027 this value is $8.02 million ($8,015,939). • Line 22 shows that in all years through FY 2031, the projected ending cash reserves are greater than the minimum cash reserve target. The recommended minimum target is equivalent to 180 days (50%) of projected annual O&M).
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City of Coronado FY 2027 Wastewater Rate Study
2 Table 1-2 Financial Plan and Revenue Requirement Projection Line Item FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
1 Annual Percentage Rate Revenue Increases 8.5% 8.5% 8.5% 8.5% 8.5% 2 3 Revenues at Current Rates $7,387,962 $7,387,962 $7,387,962 $7,387,962 $7,387,962 4 Revenue from Rate Adjustments $627,977 $1,309,332 $2,048,601 $2,850,709 $3,720,996 5 Total Rate Revenues $8,015,939 $8,697,294 $9,436,563 $10,238,671 $11,108,958 6 7 Non-Rate Revenues $719,000 $719,000 $719,000 $719,000 $719,000 8 Total Revenues $8,734,939 $9,416,294 $10,155,563 $10,957,671 $11,827,958 9 10 Operations and Maintenance Expense $5,695,239 $5,630,181 $6,132,902 $5,956,707 $6,618,546 11 Metro JPA Treatment Costs $2,906,545 $2,901,010 $2,756,250 $3,307,500 $3,038,766 12 Debt Service Expenditures $371,101 $371,101 $371,101 $371,101 $371,101 13 Rate Financed CIP Expenditures $3,244,800 $3,374,592 $3,509,576 $3,649,959 $2,024,510 14 Total Expenditures $12,217,685 $12,276,884 $12,769,829 $13,285,267 $12,052,923 15 16 Net Operating Cash Flow -$3,482,746 -$2,860,590 -$2,614,266 -$2,327,596 -$224,965 17 18 Beginning Cash Reserves $16,619,269 $13,136,523 $10,275,933 $7,661,667 $5,334,071 19 Add/Subtract Net Operating Cash Flow -$3,482,746 -$2,860,590 -$2,614,266 -$2,327,596 -$224,965 20 Ending Cash Balance $13,136,523 $10,275,933 $7,661,667 $5,334,071 $5,109,106 21 Target Reserves (180 Days of Annual
OPEX)* $4,486,443 $4,451,146 $4,630,126 $4,817,654 $5,014,206 22 Variance from Target $8,650,080 $5,824,787 $3,031,541 $516,417 $94,900 *50% of the total of lines 10, 11 and 12.
II. COST OF SERVICE STUDY SUMMARY
A cost of service (COS) study was conducted for FY 2027, the first year of the FY 2027-2031 planning horizon. The purpose of a COS study is to estimate the cost to provide service to different classes of customers based on, and in proportion to, their unique demand characteristics.
As shown in Table 1-3, there are rate adjustments proposed for each customer class. The key items to note in Table 1-3 include:
• The customer classes shown in Table 1-3 are the same as those used in the City’s current rate structure. As discussed later in this report, modifications to the City’s method for billing customers should be made before any alternative rate structure can be implemented.
• For some customer classes, there are significant differences between the estimated FY 2027 COS and projected FY 2027 revenue from current rates.; for example, Multi-Family Residential customers (Line 2) and Small Restaurant customers (Line 5). These types of imbalances can occur when customer specific consumption data is not available or there are significant changes to customer demand characteristics. • The methods used to estimate customer demand characteristics in this study differ from those used in the City’s most recent COS study which was completed in 2014; for example, billing units such as residential dwelling units, metered water consumption and associated wastewater discharge volumes, and wastewater discharge strength loadings.
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City of Coronado FY 2027 Wastewater Rate Study
3 • Line 17 compares the estimated FY 2027 COS of $7.39 million ($7,387,962) to projected FY 2027 revenues at current rates of $8.02 million ($8,015,939). Their percentage difference between these two amounts is
8.5%. This matches the FY 2027 financial planning revenue increase shown in Table 1-1 and Table 1-2.
Table 1-3 Cost of Service Study Results
Line Customer Class
FY 2027
Revenue at
Current Rates
FY 2027 Cost
of Service $ Difference % Difference
1 Single Family Residential $2,709,135 $3,083,171 $374,036 13.81% 2 Multi-Family Residential $2,128,932 $1,457,553 ($671,379) -31.54% 3 Hotel (per room) $433,524 $451,944 $18,420 4.25%
4 Commercial $275,839 $464,831 $188,992 68.52%
5 Small Restaurant (Up to 50
seats) $19,860 $39,804 $19,944 100.42%
6 Medium Restaurant (51-150
seats) $39,016 $38,217 ($799) -2.05%
7 Large Restaurant (Over 150
seats) $73,994 $87,783 $13,788 18.63%
8 Boat Slips (per slip) $4,596 $7,688 $3,092 67.28%
9 Hotel Del Coronado Laundry $192,305 $245,898 $53,593 27.87% 10 Laundry Lounge $7,196 $8,140 $944 13.12%
11 Port of San Diego $1,755 $2,119 $364 20.75%
12 School $105,560 $121,614 $16,054 15.21%
13 Hospital $45,390 $52,224 $6,834 15.06%
14 Navy NAB $345,986 $501,846 $155,860 45.05%
15 Navy NASNI $970,490 $1,407,552 $437,062 45.04%
16 Navy Coastal Campus $34,382 $45,555 $11,173 32.50%
17 Total $7,387,962 $8,015,939 $627,977 8.50%
III. SUMMARY OF PROPOSED RATES
The final step in the COS study process is the development of proposed rates. The rate is calculated by dividing the FY 2027 COS calculated for each customer class by the projected number of FY 2027 billing units. Table 14 shows proposed FY 2027 rates compared to current rates.
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City of Coronado FY 2027 Wastewater Rate Study
4 Table 1-4 Proposed FY 2027 Monthly Rates
Line Customer Class Billing Unit Current
Rate*
Proposed
Rate
$
Difference
%
Difference
1 Single Family Unit (SFU) Dwelling
Units/Month $48.75 $55.48 $6.73 13.81%
2 Multi-family Unit (MFU) Dwelling
Units/Month $39.00 $26.70 ($12.30) -31.54%
3 Hotel (per room) Hotel
Room/Month $19.72 $20.56 $0.84 4.25%
4 Commercial Accounts/Month $58.94 $99.32 $40.38 68.52% 5 Small Restaurant (up to 50 seats) Accounts
(1)/Month $44.73 $89.65 $44.92 100.42%
6 Medium Restaurant (51-150 seats) Accounts
(1)/Month $203.21 $199.05 ($4.16) -2.05%
7 Large Restaurant (>150 seats) Accounts
(1)/Month $616.62 $731.52 $114.90 18.63%
8 Boat Slips (per slip) Boat Slip/Month $7.66 $12.81 $5.15 67.28% 9 Hotel Del Coronado Laundry ccf Flow (2) $5.38 $6.88 $1.50 27.87% 10 Laundry Lounge (laundromat) ccf Flow (2) $4.52 $5.11 $0.59 13.12% 11 Port of San Diego ccf Flow (2) $4.41 $5.33 $0.92 20.75% 12 School ccf Flow (2) $4.46 $5.14 $0.68 15.21%
13 Hospital ccf Flow (2) $4.69 $5.40 $0.71 15.06%
14 Navy NAB (Transportation Only) MG Flow (3) $3,538.46 $5,131.17 $1,592.71 45.05% 15 Navy NASNI (Transportation Only) MG Flow (3) $3,538.46 $5,131.17 $1,592.71 45.04% 16 Navy Coastal Campus (Transportation
Only) MG Flow (3) $3,538.46 $5,131.17 $1,592.71 45.0%
17 Navy Coastal Campus (BOD) (4) 1,000 pounds $337.02 $428.68 $91.66 27.20% 18 Navy Coastal Campus (TSS) (5) 1,000 pounds $356.51 $640.43 $283.92 79.64% 19 20 (1) APN = Assessor's Parcel Number
21 (2) ccf = Hundred Cubic Feet
22 (3) MG = Million Gallons
23 (4) BOD = Biochemical Oxygen Demand
24 (5) TSS = Total Suspended Solids
*Rates from July 1, 2018
Table 15 shows proposed rates for the 5-year period FY 2027 – FY 2031. The projected rates shown for FY 2027 – FY 2031 reflect the annual percentage rate revenue adjustments shown in Table 1-1 and Table 1-2. Specifically, the proposed rates are an increase of 8.5% annually in FY 2027 – FY 2031.
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City of Coronado FY 2027 Wastewater Rate Study
5 Table 1-5 Proposed Monthly Rates FY 2027 - FY 2031
Line Customer Class Current* FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 1 SFU $48.75 $55.48 $60.20 $65.31 $70.86 $76.89
2 MFU $39.00 $26.70 $28.97 $31.43 $34.10 $37.00
3 Hotel $19.72 $20.56 $22.31 $24.20 $26.26 $28.49
4 Commercial $58.94 $99.32 $107.77 $116.93 $126.86 $137.65 5 Small Restaurant $44.73 $89.65 $97.27 $105.54 $114.51 $124.24 6 Medium Restaurant $203.21 $199.05 $215.97 $234.32 $254.24 $275.85 7 Large Restaurant $616.62 $731.52 $793.70 $861.17 $934.36 $1,013.79 8 Boat Slips $7.66 $12.81 $13.90 $15.08 $16.37 $17.76
9 Hotel Del Coronado Laundry $5.38 $6.88 $7.46 $8.10 $8.79 $9.53 10 Laundry Lounge $4.52 $5.11 $5.55 $6.02 $6.53 $7.09
11 Port of San Diego $4.41 $5.33 $5.78 $6.27 $6.80 $7.38 12 School $4.46 $5.14 $5.58 $6.05 $6.56 $7.12
13 Hospital $4.69 $5.40 $5.85 $6.35 $6.89 $7.48
14 Navy NAB
(Transportation Only) $3,538.46 $5,131.17 $5,567.32 $6,040.55 $6,553.99 $7,111.08 15 Navy NASNI
(Transportation Only) $3,538.46 $5,131.17 $5,567.32 $6,040.55 $6,553.99 $7,111.08 16 Navy Coastal Campus
(Transportation Only) $3,538.46 $5,131.17 $5,567.32 $6,040.55 $6,553.99 $7,111.08 17 Navy Coastal Campus
(BOD Strength) $337.02 $428.68 $465.12 $504.65 $547.55 $594.09 18 Navy Coastal Campus
(TSS Strength) $356.51 $640.43 $694.87 $753.93 $818.01 $887.54 *Rates from July 1, 2018
IV. RECOMMENDATION
The City’s current wastewater rate structure uses several types of billing units. It is different from other types of rate structures commonly used by California wastewater utilities due to its unique customer specific rate classes. Because of the limited consumption data availability and by parcel billing that combines land use or customer account types, the City has historically used the best data available to assess customer classifications based upon equivalent dwelling units that assessed a fee relative to a single family unit. To the extent possible, the City should continue to work with Cal Am so that water consumption data for all customers is available to regularly assess and assign rates to each wastewater customer account. This information can then be used to: 1) consider the implementation of a simpler and more contemporary rate structure; 2) efficiently bill more types of customers using $/ccf commodity charges; and 3) conduct rate studies on a more consistent basis.
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6 2. Introduction
I. STUDY BACKGROUND
The City of Coronado (City) last completed a wastewater cost of service (COS) study in 2014 with rates increasing from FY 2015 to FY 2019, with rates unchanged in six years. To assess the adequacy of current wastewater rates, and their alignment with the requirements of Proposition 218, the City retained the services of Raftelis to conduct a wastewater rate study update. The major objectives of the study included:
• The development of a Wastewater Enterprise Fund financial plan and revenue requirement forecast for the five-year period FY 2027 through FY 2031.
• The completion of a cost of service study that estimates the cost of providing service to each of the City’s sewer customer classes.
• Proposed rates for the period FY 2027 through FY 2031 developed in a manner that complies with the intent of Proposition 218.
• Recommendations regarding potential alternative wastewater rate structures.
II. THE CORONADO WASTEWATER SYSTEM
The City operates a wastewater collection system that transports the wastewater discharges received from approximately 15,100 service connections associated with a population of approximately 20,000 people. Customer wastewater discharges are primarily associated with residential customers, commercial customers, and three United States Navy facilities.
The City is approximately 7.4 square miles in size and fully built-out. The wastewater system includes 45 miles of wastewater mains and 17 pump stations. The City is a member of the San Diego Metropolitan Wastewater Joint Powers Authority (Metro JPA) which uses City of San Diego wastewater treatment plants to provide wholesale wastewater treatment services to 15 utilities located across the County of San Diego. Wastewater is transmitted to the City of San Diego through Coronado’s Transbay Pump Station and Force Main.
The United States Navy facilities served by the City are the Naval Amphibious Base Coronado (Navy NAB), Naval Air Station North Island (Navy NASNI), and the Naval Base Coronado Coastal Campus (Navy Coastal Campus).
The Navy NAB and NASNI facilities have industrial wastewater discharge permits. They directly pay the Metro JPA for transportation and treatment services within the Metro JPA system. The City transports the wastewater from these two Naval facilities to the Metro JPA and the Navy pays the City for transportation. The Navy Coastal Campus does not have an industrial wastewater discharge permit or agreement with City of San Diego and therefore the rates they pay the City include both transportation and Metro JPA transportation and treatment costs.
III. LEGAL REQUIREMENTS
In November 1996, California voters approved Proposition 218, which amended the California Constitution by adding Articles XIII C and Article XIII D. Article XIII D placed certain limitations on the use of revenue collected from property-related fees and charges and on the amount of the fee or charge that may be imposed on each parcel by governmental agencies. Additionally, it established procedural requirements for imposing new, or increasing existing, property-related fees and charges.
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7 The substantive requirements in Article XIII D place limitations on (1) the use of the revenue collected from propertyrelated fees and charges and (2) the allocation of costs recovered by such fees or charges to ensure that they are proportionate to the cost of providing the service(s) attributable to each parcel.
Ultimately, a determination of whether utility rates comply with Proposition 218 can only be made by a court of competent jurisdiction. Raftelis is not a law firm, and we offer no legal opinion on District compliance with Proposition 218.
IV. THE RATE SETTING METHODOLOGY
The wastewater rates discussed in this report developed using the principles described in the Water Environment Federation (WEF) publication, Manual of Practice No 27, Financing and Charges for Wastewater Systems (WEF Manual No 27) which establishes commonly accepted professional standards for wastewater COS studies.
V. COMPLIANCE
Recent regulatory changes detailed in AB 755 passed in 2023 and codified in Water Code, §§ 390 & 390.1 require the City to identify the costs to serve the largest 10 percent of the users in the City. Proposition 218 requires rates that allocate costs of service proportionately, not special rates for the top 10% of consumers regardless of other factors. It is Raftelis’ professional judgment that the rates proposed in Table 1-4 and Table 1-5 are the most efficient and fairest way to allocate costs to wastewater customer classes consistent with Proposition 218.
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8 3. FINANCIAL PLANNING
I. THE FINANCIAL PLANNING PROCESS
The overarching objective of the financial planning process is to develop a funding strategy that will ensure utility financial viability over the selected planning horizon. A key outcome of the financial planning process is the development of the projected revenue requirement from rates (i.e., rate revenues that must be collected from customers). The revenue requirement serves as the basis for the COS analysis and the development of proposed rates.
The City’s Wastewater Enterprise Fund incurs all costs necessary to provide customers with wastewater utility service. This includes on-going operating costs, annual payments to the San Diego Metropolitan Wastewater Joint Powers Authority (Metro JPA) for wastewater treatment services, and capital improvement expenditures for the repair and rehabilitation of existing infrastructure. Each of these items must be forecast as part of the financial planning process to forecast the annual revenue requirement from rates.
The financial planning process begins with the development of a demand forecast and a projection of future rate revenues at current rates (i.e., assuming no rate increases). These projected rate revenues are then compared to projected operating and capital costs that incorporate assumptions regarding expected inflation. Often, the difference between projected revenues at current rates and projected costs assuming inflation is a funding gap (i.e., a revenue shortfall). The funding gap mut be filled by additional funding sources such increases in rate revenues, external debt financing, capacity fees, or grants. The objective of the financial planning process is to identify an optimal mix of funding sources that will achieve the utility’s financial objectives while minimizing the utility rate and associated bill impacts experienced by customers.
Key steps in the development of a water financial plan include:
• Demand Forecast: The demand forecast projects customer billing units such as customer accounts, residential dwelling units, and metered water consumption and associated wastewater discharge volumes. • Projection of Wastewater Sales Revenues at Current Rates: This step in the financial planning process determines how much rate revenue will be earned from forecast demand if there are no rate increases. This projected level of rate revenue is then compared to projected expenditures to determine the annual funding gap.
• Projection of Miscellaneous Non-Rate Revenue: Miscellaneous non-rate revenue items can include interest income from cash reserves, grants, capacity fee receipts, and miscellaneous ancillary fees. Miscellaneous non-rate revenues assist in closing the projected annual funding gap and reduce the revenue requirement from rates (i.e., the amount of rate revenue that must be earned from customers). • Projection of Expenditures (O&M Expenses, Rate Funded CIP Expenditures, Debt Service Payments):
This step in the financial planning process determines the expenditures that will be incurred by the utility to provide service during each year of the planning horizon. Expenditure projections are generally based on a current year budget which is projected forward using inflation assumptions. Projected expenditures are compared against projected wastewater sales revenue at current rates and projected miscellaneous non-rate revenue to determine the annual funding gap.
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9 • Identification of Cash Reserve and Debt Service Coverage Targets: Utilities must not only have sufficient revenues to pay for projected expenditures, but they must also maintain the appropriate level of cash reserves and meet debt service coverage requirements.
• Determination of the Capital Financing Strategy: In this final step in the financial planning process, the utility determines the optimal mix of funding sources to cover the funding gap/revenue shortfall. Depending on the utility, funding sources can include revenues from rates, capacity fees, external debt financing and/or grants.
II. PROJECTED CUSTOMERS
As part of the City’s annual reporting to Metro JPA for wastewater flow, the City has and continues to use data (Series 15 Forecast) provided by the San Diego Association of Governments (SANDAG) which shows a steady decline in population for Coronado until 2050, the last year of the data. However, this may be tempered by changes in state law for density and Accessory Dwelling Units, and implementation of the City’s Housing Element. As of the timing of this study, there are no known large developments in the permitting process and therefore, customer growth is assumed to be relatively flat during the FY 2027 – FY 2031 planning horizon.
The customer count information shown in Table 3-1 was developed jointly by Raftelis and City staff.
Table 3-1 Projected Customers FY 2027-2031
Line Customer Class Explanation of Customer Count FY
2027-31
1 SFU Dwelling units – rate is a $/month fixed charge billed on dwelling units 4,631 2 MFU Dwelling units - rate is a $/month fixed charge billed on dwelling unit 4,549 3 Hotel Hotel rooms - rate is a $/month fixed charge billed on hotel rooms 1,832 4 Commercial Accounts/APNs - rate is a $/month fixed charge billed on accounts/APNs 390 5 Small Restaurant Accounts/APNs - rate is a $/month fixed charge billed on accounts/APNs 37 6 Medium Restaurant Accounts/APNs - rate is a $/month fixed charge billed on accounts/APNs 16 7 Large Restaurant Accounts/APNs - rate is a $/month fixed charge billed on accounts/APNs 10 8 Boat Slips Boat slips - rate is a $/month fixed charge billed on boat slips 50 9 Hotel Del Coronado
Laundry Accounts/APNs - rate is a $/ccf commodity charge billed on flow 1 10 Laundry Lounge Accounts/APNs - rate is a $/ccf commodity charge billed on flow 1 11 Port of San Diego Accounts/APNs - rate is a $/ccf commodity charge billed on flow 1 12 School Accounts/APNs - rate is a $/ccf commodity charge billed on flow 1 13 Hospital Accounts/APNs - rate is a $/ccf commodity charge billed on flow 1 14 Navy NAB Navy facility – rate is a $/MG commodity charge billed on flow (flow only – strength not included) 1
15 Navy NASNI Navy facility – rate is a $/MG commodity charge billed on flow (flow only – no strength) 1
16 Navy Coastal Campus Navy facility – flow is billed using a $/MG commodity charge, BOD and TSS strength billed on a $/1,000 pound basis 1
III. PROJECTED CUSTOMER WATER CONSUMPTION
Regardless of how they are billed (monthly fixed charge or commodity rate), the metered water consumption of different customer classes must be identified as a first step in the development of projected wastewater discharges.
The projected water consumption volumes shown in Table 3-2 were developed by Raftelis and City staff based on data provided by the California American Water Company (“Cal Am”). Cal Am is an investor-owned utility that provides water service in the City. The projected annual water consumption is the same for each year of the planning Attachment 1
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10 horizon due to the assumption of a relatively flat customer account growth. This assumption factors in a balanced approach with emphasis on continuous water conservation efforts.
It is important to note that Cal Am identifies customer accounts and measures their billed water consumption based on their water meter specifications which can include multiple customer types depending on the meter’s location, use and owner. The City’s billing process for wastewater rates has historically consisted of the identification of its wastewater customers on an account/APN basis. Cal Am and the City also use different protocols to classify customers (e.g., account numbers, addresses, business descriptions, etc.). These differing approaches to tracking customers complicate the identification of billed water consumption for some wastewater customer classes. As a result, the projected water consumption volumes shown in Table 32 required Raftelis and City staff to extrapolate/estimate water consumption volumes for some customer classes using the best data available.
Table 3-2 Projected Customer Water Consumption
Line Customer Class Flow Description FY 2027-31
1 SFU (1) ccf 552,888
2 MFU ccf 195,228
3 Hotel ccf 60,661
4 Commercial ccf 60,039
5 Small Restaurant ccf 4,821
6 Medium Restaurant ccf 4,925
7 Large Restaurant ccf 11,717
8 Boat Slips ccf 414
9 Hotel Del Coronado Laundry ccf 35,745
10 Laundromat(s) ccf 1,592
11 Port of San Diego ccf 398
12 School (CUSD) ccf 23,668
13 Hospital (Sharp) ccf 9,678
14 Navy NAB MG 97.8
15 Navy NASNI MG 274.3
16 Navy Coastal Campus MG 6.5
17 Navy Coastal Campus Pounds of BOD 15,945
18 Navy Coastal Campus Pounds of TSS 16,867
IV. PROJECTED REVENUE AT CURRENT RATES
Table 3-3 shows the projection of revenue at current rates for the period FY 2027 – FY 2031. The projected annual rate revenue is the same for each year of the planning horizon due to the assumption of minimal customer account growth.
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11 Table 3-3 Projected Revenue at Current Rates
Line Customer Class FY 2027 – FY2031
1 SFU $2,709,135
2 MFU $2,128,932
3 Hotel $433,524
4 Commercial $275,839
5 Small Restaurant $19,860
6 Medium Restaurant $39,016
7 Large Restaurant $73,994
8 Boat Slips $4,596
9 Hotel Del Coronado Laundry $192,305
10 Laundry Lounge $7,196
11 Port of San Diego $1,755
12 School $105,560
13 Hospital $45,390
14 Subtotal Non-Navy $6,037,104
15 16 Navy NAB $345,986
17 Navy NASNI $970,490
18 Navy Coastal Campus (Flow portion) $22,995
19 Navy Coastal Campus (BOD strength) $5,374
20 Navy Coastal Campus (TSS strength) $6,013
21 Subtotal Navy $1,350,858
22 23 Total Revenue at Current Rates $7,387,962
V. PROJECTED MISCELLANEOUS NON-RATE REVENUES
Revenues from miscellaneous non-rate sources reduce the level of rate revenues that must be collected from customers for the provision of utility service. As shown in Table 3-4 the primary source of non-rate revenue is investment income. The amounts shown were supplied by City staff based on upon historical budget trend data and future year projections.
Table 3-4 Projected Miscellaneous Non-Rate Revenues
Line Miscellaneous Revenues FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 1 Sewer Connection Permits $200,000 $200,000 $200,000 $200,000 $200,000 2 Investment Earnings $200,000 $200,000 $200,000 $200,000 $200,000 3 Reimbursements Other $319,000 $319,000 $319,000 $319,000 $319,000 4 Total $719,000 $719,000 $719,000 $719,000 $719,000
VI. PROJECTED OPERATING EXPENSES
The projection of operating expenses was based on the City’s FY 2027 operating expense budget. Wastewater Enterprise Fund operating expenses are accounted for in two separate funds. Fund 810 is used to account for operations and maintenance expenses. Fund 710 is used to account for capital outlays. Capital outlays are expenses related to the wastewater utility capital improvement program that are not capitalized such as personnel expenses and indirect costs. These expenses are not recorded as assets and are not subject to depreciation. Table 3-5 shows the projection of operating expenses for the period FY 2027 - FY 2031. Table 3-6 shows the inflation factors used in the development of the projected operating expenses shown in Table 3-5.
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12 Table 3-5 Projected Operating Expenses
Line Expenses FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
1 Fund 810 Operations and Maintenance
2 Salaries and Benefits $1,888,513 $2,001,824 $2,061,878 $2,123,735 $2,187,447 3 Contract Services $1,810,338 $1,400,500 $1,545,514 $1,714,066 $1,797,049 4 Utilities $330,035 $343,896 $358,340 $373,390 $389,073 5 Metro JPA Treatment Costs $2,906,545 $2,901,010 $2,756,250 $2,894,063 $3,038,766 6 Vehicles and Equipment $220,262 $347,605 $584,260 $528,074 $564,671 7 Other O&M Expenses $656,861 $706,128 $727,775 $750,090 $773,094 8 Indirect Expenses $329,600 $343,740 $354,052 $364,674 $375,614 9 Total Fund 810 $8,142,154 $8,044,703 $8,388,070 $8,748,092 $9,125,714 10 11 Fund 710 Capital Outlay
12 Salaries and Benefits $435,652 $461,791 $475,645 $489,914 $504,612 13 Other Expenses $2,347 $2,418 $2,490 $2,565 $2,642
14 Indirect Expenses $21,631 $22,279 $22,948 $23,636 $24,345 15 Total Fund 710 $459,630 $486,488 $501,083 $516,115 $531,599 16 17 Total Operating Expenses $8,601,784 $8,531,191 $8,889,152 $9,264,207 $9,657,312 18 Annual Percentage Growth --- -0.80% 4.20% 4.20% 4.20% Table 3-6 Operating Expense Inflation Factors
Line Expense Type FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 1 General 3% 3% 3% 3% 3%
2 Salary 5% 6% 3% 3% 3%
3 Benefits 5% 5% 5% 5% 5%
4 Utilities 4% 4% 4% 4% 4%
5 Treatment 5% 5% 5% 5% 5%
6 Chemical 4% 4% 4% 4% 4%
7 Fuel 4% 4% 4% 4% 4%
VII. PROJECTED CAPITAL IMPROVEMENT EXPENDITURES
Table 3-7 shows the projected capital improvement for FY 2027 – FY 2031. The capital expenditure projection was provided by City staff and was developed in 2025 and expressed in 2025 dollars (i.e., current year dollars).
As shown in Line 7 of Table 3-7, the total projected capital improvement expenditures for the five-year planning horizon are $15.80 million ($15,803,437). The chart indicates general categories of capital projects. A detailed listing of specific projects can be found in the City’s FY 2025-26 budget document.
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13 Table 3-7 Projected Capital Improvement Expenditures Line Project FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Total 1 Wastewater Mains & Manholes
(Parker, Alameda) $1,100,000 $0 $0 $0 $0 $1,100,000
2 Pump Stations (Cays, Pine,
Bahama, Transbay, Glorietta) $1,250,000 $1,000,000 $1,500,000 $1,000,000 $1,400,000 $6,150,000 3 Wastewater Mains & Manholes
(Village) $0 $1,804,592 $1,419,576 $2,039,959 $0 $5,264,127 5 Wastewater Main Rehabilitation
(Citywide) $644,800 $420,000 $440,000 $460,000 $474,510 $2,439,310 6 Force Mains (Design and
Construction) $250,000 $150,000 $150,000 $150,000 $150,000 $850,000 7 Annual Total $3,244,800 $3,374,592 $3,509,576 $3,649,959 $2,024,510 $15,803,437 VIII. PROJECTED FY 2027 – FY 2031 FINANCIAL PLAN
Table 3-8 provides a detail of the projected FY 2027 – FY 2031. Key things to note about the financial plan include:
• The annual increases in rate revenues shown in Line 1 match those originally shown in Table 1-1 and Table 1-2.
• The annual revenue requirement from rates shown on Line 11 matches the revenue requirement shown on Line 5 of Table 1-2. The revenue requirement is a key outcome of the financial planning process. It defines the amount of revenue that must be collected from customers. The FY 2027 revenue requirement of $8.02 million ($8,015,939) is allocated to customers in the COS process as discussed later in this report. • The FY 2027 operating expenses shown in Lines 21 - 37 are based on the Wastewater Enterprise Fund FY 2027 budget. Projected FY 2028 – FY 2031 operating expenses have been escalated by the inflation factors shown in Table 3-6.
• The rate funded capital costs shown in Line 42 match those presented in Table 3-7. As noted in the Table 3-7 discussion, $8.76 million ($8,757,289) of the projected capital expenditures of $15.80 million ($15,803,437) are associated with projects that have not yet been specifically identified. • All proposed capital improvement expenditures are assumed to be rate financed. No loans from the City and no external debt financing are assumed to be used to finance projected capital expenditures. • The proposed annual percentage increases in rate revenues shown in Line 1 results in revenues that are projected to be less than projected expenditures. Thus, the Wastewater Enterprise Fund has a negative net operating cash flow in each year of the planning horizon (Line 46). • Due to the annual recurring negative net operating cash flow shown on Line 46, cash reserves decline from $16.6 million ($16,619,269) at the start of FY 2027 (Line 48) to $5.1 million ($5,109,106) at the end of FY 2031 (Lines 50). Specifically, the beginning balance of cash reserves (Line 48) is reduced by the negative net operating cash flows (Line 49) to arrive at the calculated ending cash reserves (Line 50). • Cash reserves remaining above the target reserve balance equivalent to 180 days of annual operating expenses throughout the FY 2027 – FY 2031 planning horizon.
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14 Table 3-8 Financial Plan and Revenue Requirement Projection Line Item FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
1 Annual Percentage Rate Increases 8.50% 8.50% 8.50% 8.50% 8.50% 2 3 Revenues from Current Rates
4 Rate Revenue - Fixed $5,684,898 $5,684,898 $5,684,898 $5,684,898 $5,684,898 5 Rate Revenue - Commodity $352,206 $352,206 $352,206 $352,206 $352,206 6 Navy Revenue (Rates Per MG) $1,339,471 $1,339,471 $1,339,471 $1,339,471 $1,339,471 7 Navy Revenue (Rates Per 1,000 Pounds) $11,387 $11,387 $11,387 $11,387 $11,387 8 Revenues from Current Rates $7,387,962 $7,387,962 $7,387,962 $7,387,962 $7,387,962 9 10 Revenue from Rate Adjustments $627,977 $1,309,332 $2,048,601 $2,850,709 $3,720,996 11 Total Rate Revenues (Annual Revenue
Requirement) $8,015,939 $8,697,293 $9,436,563 $10,238,671 $11,108,958 12 13 Miscellaneous Non-Rate Revenues
14 Sewer Connection Fee Permits $200,000 $200,000 $200,000 $200,000 $200,000 15 Investment Earnings $200,000 $200,000 $200,000 $200,000 $200,000 16 Other Reimbursements $319,000 $319,000 $319,000 $319,000 $319,000 17 Total Miscellaneous Non-Rate Revenues $719,000 $719,000 $719,000 $719,000 $719,000 18 19 Total Revenues $8,734,939 $9,416,293 $10,155,563 $10,957,671 $11,827,958 20 21 Fund 810 Operating Expenses
22 Salaries and Benefits $1,888,513 $2,001,824 $2,061,878 $2,123,735 $2,187,447 23 Contract Services $1,810,338 $1,400,500 $1,545,514 $1,714,066 $1,797,049 24 Utilities $330,035 $343,896 $358,340 $373,390 $389,073 25 Metro JPA $2,906,545 $2,901,010 $2,756,250 $2,894,063 $3,038,766 26 Vehicles and Equipment $220,262 $347,605 $584,260 $528,074 $564,671 27 Miscellaneous Expenses $656,861 $706,128 $727,775 $750,090 $773,094 28 Indirect Expenses $329,600 $343,740 $354,052 $364,674 $375,614 29 Subtotal 810 Operating Expenses $8,142,154 $8,044,703 $8,388,069 $8,748,092 $9,125,714 30 31 Fund 710 Capital Outlay
32 Salaries and Benefits $435,652 $461,791 $475,645 $489,914 $504,612 33 Other Expenses $2,347 $2,418 $2,490 $2,565 $2,642
34 Indirect Expenses $21,630 $22,279 $22,947 $23,636 $24,345 35 Subtotal 710 Capital Outlay $459,629 $486,488 $501,082 $516,115 $531,599 36 37 Total Operating Expenses $8,601,783 $8,531,191 $8,889,151 $9,264,207 $9,657,312 38 39 Capital Costs
40 Existing Debt Service $371,101 $371,101 $371,101 $371,101 $371,101 41 Proposed Debt Service $0 $0 $0 $0 $0
42 Rate Funded Capital Projects $3,244,800 $3,374,592 $3,509,576 $3,649,959 $2,024,510 43 Total Capital Costs $3,615,901 $3,745,693 $3,880,677 $4,021,060 $2,395,611 44 45 Total Expenditures $12,217,685 $12,276,884 $12,769,829 $13,285,266 $12,052,923 46 Net Operating Cash Flow ($3,482,747) ($2,860,590) ($2,614,265) ($2,327,595) ($224,965) 47 48 Beginning Cash Reserves $16,619,269 $13,136,522 $10,275,932 $7,661,666 $5,334,071 49 Add/(Subtract) Net Operating Cash Flow -$3,482,747 -$2,860,590 -$2,614,265 -$2,327,595 -$224,965 50 Ending Cash Reserves $13,136,522 $10,275,932 $7,661,666 $5,334,071 $5,109,106 Attachment 1
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15 4. COS ANALYSIS
I. COST OF SERVICE (COS) METHODOLOGY
A COS study distributes the revenue requirement from rates (costs) to each customer class based on their proportionate share of total system wastewater demand. The outcome of the COS process is the determination of the amount of revenue from rates that must be recovered from each customer class. The COS study completed by Raftelis follows industry standard cost allocation principles as presented in WEF Manual No. 27.
II. REVENUE REQUIREMENT COST COMPONENTS
The starting point of the COS process is to identify the operating and capital cost components of the annual revenue requirement. Table 4-1 shows this for the Department's FY 2027 water utility revenue requirement. All the information shown in Table 4-1 was derived from the FY 2027 column of the financial plan shown in Table 3-8. The net revenue requirement on Line 3-4 of Table 4-1 matches Line 11 of Table 3-8.
Table 4-1 FY 2027 Revenue Requirement Cost Components
Line Operating Expenses Operating Cost Capital Cost Total 1 Fund 810 Operations and Maintenance
2 Salaries and Benefits $1,888,513 $1,888,513
3 Contract Services $1,810,338 $1,810,338
4 Utilities $330,035 $330,035
5 Metro JPA Treatment Expenses $2,906,545 $2,906,545
6 Vehicles and Equipment $220,262 $220,262
7 Other O&M Expenses $656,861 $656,861
8 Indirect Expenses $329,600 $329,600
9 Fund 810 Total $8,142,154 $8,142,154
10 11 Fund 710 Capital Outlay
12 Salaries and Benefits $435,652 $435,652
13 Other Expenses $2,347 $2,347
14 Indirect Expenses $21,631 $21,631
15 Fund 710 Total $459,630 $459,630
16 17 Total Operating Costs $8,601,784 $0 $8,601,784
18 19 Capital Costs
20 Existing Debt Service $371,101 $371,101
21 Proposed Debt Service $0 $0
22 Rate Funded Capital Projects $3,244,800 $3,244,800
23 Net Cash Flow (Change in Cash Reserves) -$3,482,747 -$3,482,747 24 Total Capital Costs $133,154 $133,154
25 26 Gross Revenue Requirement $8,601,784 $133,154 $8,734,939 27 28 Less: Miscellaneous Non-Rate Revenue
29 Sewer Connection Permits $200,000 $200,000
30 Investment Earnings $200,000 $200,000
31 Reimbursements Other $319,000 $319,000
32 Total Miscellaneous Non-Rate Revenues $200,000 $519,000 $719,000 33 Net Revenue Requirement $8,401,784 ($385,846) $8,015,939 Attachment 1
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16 III. ALLOCATION TO COST CAUSATION COMPONENTS
The second step in the wastewater COS process is to allocate the costs included in the revenue requirement to specific “cost causation” components. The objective is to identify the type of customer demand each cost is incurred to meet.
The cost causation components used in the City’s COS study are described om Table 4-2.
Table 4-2 Cost Causation Components
Cost Causation Component Description
Flow The volume of customer wastewater discharges. This cost causation component is applicable to all customers except Navy NAB and Navy NASNI.
Flow Transportation The volume of wastewater discharges by Navy NAB and Navy NASNI. These two customers are charged only for the transportation of flow.
Biochemical Oxygen Demand (BOD)
A measurement of the strength characteristics of customer wastewater discharges. A BOD strength component is included in the rates of all City wastewater customers with the exception of Navy NAB and Navy NASNI.
Total Suspended Solids (TSS)
A measurement of the strength characteristics of customer wastewater discharges. A TSS strength component is included in the rates of all City wastewater customers with the exception of Navy NAB and Navy NASNI.
Customer Costs The costs incurred by the City for customer service functions.
General and Administrative Costs The administrative costs incurred by the City for administrative functions.
Over 80 general ledger accounts are used in the City’s budgeting and financial accounting systems to track Wastewater Enterprise Fund operating costs. Table 4-3 summarizes the outcome of the allocation of operating costs to cost causation components used in the COS study.
Table 4-3 Allocation of Operating Costs to Cost Causation Components Line Percentage Allocations Flow Flow
Transp.
BOD TSS Customer G&A Total
1 General Operating Costs 51.6% 33.4% 0.0% 0.0% 5.0% 10.0% 100.0% 2 Metro JPA Treatment 48.8% 0.0% 21.1% 30.1% 0.0% 0.0% 100.0% 3 Flow Specific Operating
Costs 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0%
4 Electric & Natural Gas
Utilities 66.6% 33.4% 0.0% 0.0% 0.0% 0.0% 100.0%
Dollar Allocations Flow Flow
Transp.
BOD TSS Customer G&A Total
5 General Operating Costs $2,848,958 $1,832,804 $0 $0 $271,730 $541,999 $5,495,491 6 Metro JPA Treatment $1,308,643 $0 $566,088 $808,269 $0 $0 $2,683,000 7 Flow Specific Operating
Costs $194,050 $0 $0 $0 $0 $0 $194,050
8 Electric & Natural Gas
Utilities $152,788 $76,455 $0 $0 $0 $0 $229,243
9 Total $4,504,440 $1,909,259 $566,088 $808,269 $271,730 $541,999 $8,601,784 10 Total Percentage
Allocation 52.4% 22.2% 6.6% 9.4% 3.2% 6.3% 100.0%
Attachment 1
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17 As discussed in Table 4-2, wastewater discharges by Navy NAB and Navy NASNI are allocated to the flow transportation cost causation component. Navy NAB and Navy NASNI are charged only for the transportation of flow. Their rates do not include a strength component. The 33.4% allocation to flow transportation shown in Line 1 (General Operating Costs) and Line 4 (Electric and Natural Gas Utilities) was determined based on the ratio of transportation flow to total system billed flow. Table 4-4 shows the derivation of the flow transportation allocation.
Table 4-4 Operating Cost Transportation Flow Allocation Line Description Ccf Gallons MG
1 Total Billed Flow 1,491,278 1,115,550,147 1,115.55
2 3 Navy NAB 130,711 97,778,668 97.78
4 Navy NASNI 366,645 274,269,063 274.27
5 Total Transportation Only 497,357 372,047,731 372
6 Transportation Flow as % of Total Billed Flow 33.4% 33.4% 33.4% The allocation factors for the Metro JPA Treatment expenses shown in Line 2 of Table 4-3 were based on the City of San Diego’s estimate of the Metro JPA wholesale treatment costs that will be incurred by the City in FY 2026.
Table 4-5 shows the derivation of these percentages.
Table 4-5 Operating Cost Metro JPA Treatment Cost Allocation(1) Description Flow Suspended Solids Chemical Oxygen
Demand (2) Total
Projected City of Coronado FY
2026 Wholesale Treatment Costs $1,308,868 $808,408 $566,185 $2,683,461 Percentage of Total 48.78% 30.13% 21.10% 100.00%
(1) Information from Table B, City of San Diego -Public Utilities Department, Projected Distribution of System Wastewater Costs - Fiscal Year 2026, Functional Design Based Allocation Method (2) The Metro JPA bills member agencies on the basis of Chemical Oxygen Demand. This is a strength loading measurement similar to Biochemical Oxygen demand which is used by the City to measure customer strength characteristics.
The allocation of capital costs to cost causation components was based on the profile of Wastewater Enterprise Fund assets. Almost 99% of the assets are used for the provision of wastewater discharge flows (e.g., pumping, force mains, and gravity mains). As a result, 99.5% of capital costs were assigned to the flow cost causation component.
Table 4-6 Allocation of Capital Costs to Cost Causation Components Line Percentage Allocations Flow Flow
Transp.
BOD TSS Customer G&A Total
1 Profile Asset Allocation
to Cost Causation
Components
98.5% 0.0% 0.0% 0.0% 0.9% 0.6% 100.0%
Dollar Allocations Flow Flow
Transp. BOD TSS Customer G&A Total
2 Existing Debt Service $365,626 $0 $0 $0 $3,285 $2,190 $371,101 3 Rate Funded Capital
Projects $0 $0 $0 $0 $0 $0 $0
4 Net Cash Flow
(Change in Cash
Reserves) $3,196,930 $0 $0 $0 $28,722 $19,148 $3,244,800 5 Total $131,190 $0 $0 $0 $1,179 $786 $133,154
6 % of Total 98.5% 0.0% 0.0% 0.0% 0.9% 0.6% 100.0%
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18 The allocation of miscellaneous non-rate revenues to cost causation components is based on the capital cost allocations as shown in Table 4-6. Table 4-7 shows these allocations.
Table 4-7 Allocation of Miscellaneous Non-Rate Revenues to Causation Components Line Percentage Allocations Flow Flow Transp. BOD TSS Custome r G&A Total
1 Based on Capital Costs 98.5% 0.0% 0.0% 0.0% 0.9% 0.6% 100.0% Dollar Allocations Flow Flow Transp. BOD TSS Custome
r G&A Total
2 Sewer Connection Permits $197,049 $0 $0 $0 $1,770 $1,180 $200,000 3 Investment Earnings $197,049 $0 $0 $0 $1,770 $1,180 $200,000 4 Reimbursement Other $314,294 $0 $0 $0 $2,824 $1,882 $319,000 5 Total $708,393 $0 $0 $0 $6,364 $4,243 $719,000
6 Percentage of Total 98.5% 0.0% 0.0% 0.0% 0.9% 0.6% 100.0% A summary of the allocation of the FY 2027 revenue requirement to cost causation components is shown in Table 4-8.
Table 4-8 Summary of Allocations to Cost Causation Components Line Revenue Requirement Flow Flow
Tranp. BOD TSS Customer G&A Total
1 Operating Costs
(See Table 4-3) $4,504,440 $1,909,259 $566,088 $808,269 $271,730 $541,999 $8,601,784 2 Capital Costs
(See Table 4-6) $131,190 $0 $0 $0 $1,179 $786 $133,154
3 Miscellaneous Non-Rate
Revenues
(See Table 4-7)
($708,393) $0 $0 $0 ($6,364) ($4,243) ($719,000)
4 Total FY 2027 Revenue
Requirement $3,927,237 $1,909,259 $566,088 $808,269 $266,544 $538,542 $8,015,939 IV. DETERMINATION OF CUSTOMER CLASS UNITS OF SERVICE
The next major step in the COS process is to determine the appropriate units of service that should be used to allocate costs to each customer class. This is accomplished by estimating the volume of flow and the strength loadings that each customer class will deliver to the Metro JPA for treatment.
As noted previously in this report, the water consumption for the City’s wastewater customer classes was estimated based on data provided by Cal Am (see Section 3 Financial Planning, Projected Customer Water Consumption).
Due to differences in the methods used by Cal Am and the City to track customer information, Raftelis and City staff were required to extrapolate/estimate water consumption volumes for some customer classes.
Table 4-9 summarizes the source of the flow and strength loading assumptions used to develop the FY 2027 units of service. Note that return flow percentages for each customer class were based on an analysis of data presented in Table 3-5 of the City's 2015 wastewater system engineering master plan. With one exception, the BOD and TSS strength loadings for each customer class were taken from the March 2021 Sanitation Districts of Los Angeles County (LACSD) Revenue Program Report (Table 3 on page 20). LACSD presented strength loading data based on chemical oxygen demand (COD) and suspended solids. The LACSD chemical oxygen demand data was converted to BOD by applying a factor of 0.50. For example, the LACSD estimate of single-family residential customer strength loadings was 562.3 mg/L (milligrams per liter). This value was converted to a BOD strength loading of 281.1 mg/L.
Attachment 1
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19 Table 4-9 Key Assumptions in the Units of Service Determination Line Customer Class Water Use (HCF) Return Flows Strength Loadings 1 SFU
Analysis of FY 2022-23 Cal
Am water billing data
Analysis of 2015 Engineering
Master Plan Table 3-5
January 2021 LACSD
Revenue Program Report,
Table 3 on page 20
2 MFU
3 Hotel
4 Commercial Analysis of FY 2022-23 Cal
Am water billing data
Analysis of 2015 Engineering
Master Plan Table 3-5
Commercial customers
assumed to have strength
loadings similar to office
buildings as shown in the
January 2021 LACSD
Revenue Program Report,
Table 3 on page 20
5 Small Restaurant
Analysis of FY 2022-23 Cal
Am water billing data
Analysis of 2015 Engineering
Master Plan Table 3-5
(assumed same as estimated
commercial)
January 2021 LACSD
Revenue Program Report,
Table 3 on page 20
6 Medium Restaurant
7 Large Restaurant
8 Boat Slips Estimated as 25% of a hotel
room
Analysis of 2015 Engineering
Master Plan Table 3-5
(assumed same as estimated
commercial
Boat slips assumed to have
strength loadings similar to
hotel rooms as shown in the
January 2021 LACSD
Revenue Program Report,
Table 3 on page 20
9 Hotel Del Coronado
Laundry
Analysis of FY 2022-23 Cal
Am water billing data
Analysis of 2015 Engineering
Master Plan Table 3-5
(assumed same as estimated
commercial
March 1998 State Water
Resources Control Board
Guidelines (Industrial
Laundry)
10 Laundry Lounge Analysis of FY 2022-23 Cal
Am water billing data
Analysis of 2015 Engineering
Master Plan Table 3-5
(assumed same as estimated
commercial
January 2021 LACSD
Revenue Program Report,
Table 3 on page 20
(Laundromat)
11 Port of San Diego Analysis of FY 2022-23 Cal
Am water billing data
Analysis of 2015 Engineering
Master Plan Table 3-5
(assumed same as estimated
commercial
January 2021 LACSD
Revenue Program Report,
Table 3 on page 20 (Office
Building)
12 School Analysis of FY 2022-23 Cal
Am water billing data
Analysis of 2015 Engineering
Master Plan Table 3-5
(assumed same as estimated
commercial
January 2021 LACSD
Revenue Program Report,
Table 3 on page 20 (Private
School)
13 Hospital Analysis of FY 2022-23 Cal
Am water billing data
Analysis of 2015 Engineering
Master Plan Table 3-5
January 2021 LACSD
Revenue Program Report,
Table 3 on page 20 (Medical
Building)
14 Navy NAB
City of Coronado flow data
Assumption of 100% return
factor for Navy transportation
flow
N/A
15 Navy NASNI N/A
16 Navy Coastal
Campus
Analysis of FY 2022-23 Cal
Am water billing data
Analysis of 2015 Engineering
Master Plan Table 3-5
(assumed same as
commercial)
FY 2026 Metro JPA estimate
of City of Coronado Strength
Loadings
Table 4-10 shows the estimated FY 2027 flows that will be contributed to the Metro JPA by City customers. The adjustment for Navy NAB and NASNI transportation flows on Line 19 reflects the fact that the City does not bill these two customers for strength loadings. The estimate of 11% inflow and infiltration on Line 22 was provided by Attachment 1
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20 City staff. The estimate of total City contributed flows is shown on Line 24. The Metro JPA estimate of City contributed flows is shown in Line 26.
Table 4-10 Estimated Customer Flow Contributions to the Metro JPA Line Customer Class Water Use (ccf) Return Flow
Factor
Metro JPA
Contribution
(ccf)
1 SFU 552,888 65.00% 359,377
2 MFU 195,228 78.33% 152,929
3 Hotel 60,661 75.00% 45,496
4 Commercial 83,500 71.25% 59,494
5 Small Restaurant 4,821 71.25% 3,435
6 Medium Restaurant 4,925 71.25% 3,509
7 Large Restaurant 11,717 71.25% 8,348
8 Boat Slips 414 1 295
9 Hotel Del Coronado Laundry 35,745 70.00% 25,021
10 Laundry Lounge 1,592 71.25% 1,134
11 Port of San Diego 398 71.25% 284
12 School 23,668 71.25% 16,864
13 Hospital 9,678 75.00% 7,259
14 Navy NAB 130,711 100.00% 130,711
15 Navy NASNI 366,645 100.00% 366,645
16 Navy Coastal Campus 8,688 71.25% 6,190
17 Total Customer Flow 1,491,278 0.00% 1,186,989
18 19 Adjustment for Navy (NAB and NASNI)) -497,357
20 Adjusted Customer Flow 689,633
21 22 Inflow and Infiltration (11%) 75,860
24 Estimated Total Contribution to Metro JPA 765,492
25 26 FY 2026 Metro JPA Estimate 644,563
27 Difference (Line 24-Line 26) 120,929
28 % Difference 15.80%
Table 4-11 shows the estimated FY 2027 wastewater strength contributed to the Metro JPA by City customers.
Inflow and infiltration on Line 19 was assumed to have no strength characteristics. The estimate of the total City strength contributions is shown on Line 20. The Metro JPA estimate of City strength contributions is shown on Line
22. Table 4-11 Estimated Customer Strength Contributions to the Metro JPA Line Customer Class COD
MG/L
BOD
MG/L
TSS
MG/L
COD
Pounds
BOD
Pounds
TSS
Pounds
1 SFU 562.3 281.1 271.9 1,261,443 630,721 610,042
2 MFU 560.7 280.4 268.8 535,325 267,663 256,663
3 Hotel 517.7 258.8 268.4 147,022 73,511 76,234
4 Commercial 515.3 257.6 269.6 191,368 95,684 100,135
5 Small Restaurant 1,998.7 999.4 599.1 42,860 21,430 12,848 6 Medium Restaurant 1,998.7 999.4 599.1 43,780 21,890 13,123 7 Large Restaurant 1,998.7 999.4 599.1 104,162 52,081 31,224 8 Boat Slips 517.7 258.8 268.4 953 476 494
9 Hotel Del Coronado Laundry 1,340.0 670.0 680.0 209,310 104,655 106,217 Attachment 1
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21 10 Laundry Lounge 513.8 256.9 269.7 3,638 1,819 1,910 11 Port of San Diego 515.3 257.6 269.6 912 456 477
12 School 515.3 257.6 269.6 54,243 27,122 28,383
13 Hospital 515.3 257.6 271.6 23,348 11,674 12,307
14 Navy NAB 0.0 0.0 0.0 0 0 0
15 Navy NASNI 0.0 0.0 0.0 0 0 0
16 Navy Coastal Campus 588.0 294.0 311.0 22,721 11,361 12,018 17 Total 2,641,086 1,320,543 1,262,075
18 19 Inflow and Infiltration (11%) 0 0 0
20 Estimated Total Contribution to
Metro JPA 2,641,086 1,262,075 1,262,075
21 22 FY 2026 Metro JPA Estimate 2,318,000 1,262,075
23 Difference (Line 20 – Line 22) 323,086 77,075
24 % Difference 12.23% 6.11%
V. ALLOCATION OF INFLOW AND INFILTRATION
After determining the FY 2027 customer units of service as summarized in Table 4-10 and Table 4-11, inflow and infiltration volumes and strength loadings must be allocated to each customer class. Strength loadings were not assigned to inflow and infiltration, therefore, only volumes must be allocated to City customers.
Inflow is water introduced into the wastewater collection and conveyance system through direct connections such as manhole covers. Infiltration is water entering the wastewater collection system through leaky sewer pipelines.
Inflow and infiltrations volumes (and strength loadings if applicable) are allocated to customers because there is a cost to transport and treat inflow and infiltration. This cost must be borne by the customers whose rates pay for wastewater treatment.
There is no industry standard one-size-fits-all approach for the allocation of inflow and infiltration in every situation.
Methods for allocating inflow and infiltration to customer classes range from relying entirely on the proportionate share of contributed volume contributed by each customer class (100% volume) to relying entirely on the proportionate share of customer accounts/wastewater service connections (100% accounts). For this study, inflow and infiltration was allocated to customer classes based on contributed volumes (33%) and based upon accounts (67%).
Table 4-12 shows the outcome of the allocation of inflow and infiltration to each customer class.
Table 4-12 Units of Service After the Allocation of Inflow and Infiltration Line Customer
Class
Flow
After
Return
Factor
Flow
Allocated
on
Volumes
Flow
Allocated
on
Accounts
BOD
Allocated
on
Volumes
BOD
Allocated
on
Accounts
TSS
Allocated
on
Volumes
TSS
Allocated
on
Accounts
Total
ccf
Flow
Total
BOD
pounds
Total
TSS
pounds
1 SFU 359,377 7,579 36,611 N/A N/A N/A N/A 403,567 630,721 610,042 2 MFU 152,929 3,225 9,425 " " " " 165,579 267,663 256,663 3 Hotel 45,496 960 431 " " " " 46,886 73,511 76,234
4 Commercial 59,494 1,255 3,172 " " " " 63,920 95,684 100,135 5 Small
Restaurant 3,435 72 301 " " " " 3,808 21,430 12,848
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22 6 Medium
Restaurant 3,509 74 130 " " " " 3,713 21,890 13,123
7 Large
Restaurant 8,348 176 81 " " " " 8,605 52,081 31,224
8 Boat Slips 295 6 407 " " " " 708 476 494
9 Hotel Del
Coronado
Laundry
25,021 528 8 " " " " 25,557 104,655 106,217
10 Laundry
Lounge 1,134 24 8 " " " " 1,166 1,819 1,910
11 Port of San
Diego 284 6 8 " " " " 298 456 477
12 School 16,864 356 163 " " " " 17,382 27,122 28,383
13 Hospital 7,259 153 57 " " " " 7,469 11,674 12,307
14 Navy NAB 130,711 0 0 " " " " 130,711 0 0
15 Navy
NASNI 366,645 0 0 " " " " 366,645 0 0
16 Navy
Coastal
Campus
6,190 131 8 " " " " 6,329 11,361 12,018
17 Total 1,186,989 14,544 50,810 " " " " 1,252,343 1,320,543 1,262,075 18 19 Flow with Strength (Line 17 – Lines 14 & 15) 754,987 1,320,543 1,262,075 20 Flow without Strength (Lines 14 & 15) 497,357 0 0
21 Total 1,252,343 1,320,543 1,262,075
VI. UNIT COST OF SERVICE FOR COST CAUSATION COMPONENTS
Having established the FY 2027 units of service for each customer class as shown in Table 4-12, the next step in the COS process is to calculate the unit cost of service for each cost causation component. The unit cost of service is calculated as shown in the following formula:
Cost Causation Revenue Requirement / Cost Causation Units of Service = Unit Cost of Service
The unit cost of service for each cost causation component is used to develop the FY 2027 COS for each wastewater customer class. As shown in Table 4-13, the unit cost of service calculation incorporates information from Table 4-8 (Lines 1- 4) and Table 4-12 (Lines 19-21).
A key question in the unit cost of service calculation is the disposition of General and Administrative (G&A) costs.
A total of $538,542 net costs were allocated to G&A as part of the process shown in Table 4-3. These G&A costs can be recovered through commodity rates (i.e., the rates for flow, BOD, and TSS) or fixed charges (i.e., monthly fixed charges). Given the limited number of non-Navy customers billed using commodity rates, G&A costs were reallocated to the Customer cost causation component (Line 6).
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23 Table 4-13 Unit Cost of Service Calculation
Line Revenue Requirement
Component Flow Flow Transp. BOD TSS Customer G&A Total
1 Operating Costs $4,504,440 $1,909,259 $566,088 $808,269 $271,730 $541,999 $8,601,784 2 Capital Costs $131,190 $0 $0 $0 $1,179 $786 $133,154
3 Misc. Non-Rate Revenue ($708,393) $0 $0 $0 ($6,364) ($4,243) ($719,000) 4 Total Revenue requirement $3,927,237 $1,909,259 $566,088 $808,269 $266,544 $538,542 $8,015,939 5 6 Allocation of G&A Costs $538,542 ($538,542)
7 Total Revenue Requirement $3,927,237 $1,909,259 $566,088 $808,269 $805,086 $0 $8,015,939 8 9 Units of Service 754,987 497,357 1,320,543 1,262,075 11,548 10 Unit Description ccf ccf pounds pound billing
units
11 12 Unit Cost of Service $5.2017 $3.8388 $0.4287 $0.6404 $69.7165 13 Unit Description per ccf per ccf per pound per pound per billing unit
VII. CUSTOMER CLASS REVENUE REQUIREMENT
After establishing the unit cost of service for each cost causation component, the revenue requirement for each customer class can be determined (i.e., the COS for each customer class). This is accomplished using the following formula:
∑ Units of Service Each Cost Causation Component * Unit Cost of Service for Each Cost Causation Component = Customer Class Revenue Requirement
Table 4-14 shows the calculation of the revenue requirement for each of the City’s wastewater water class. The units of service shown in Lines 1-17 can be traced to Table 4-12. The unit cost of service for each cost causation component was calculated as shown in Table 4-13.
Note that the sum of the FY 2027 revenue requirement for each customer class is $8.02 million ($8,015,939) as shown on Line 34. This matches the FY 2027 revenue requirement referenced in previous tables throughout the report.
Table 4-14 Calculation of the FY 2027 Customer Class Revenue Requirement Units of Service
Flow Flow
Transp. BOD TSS Customer
Line Customer Class (ccf) (ccf) (pounds) (pounds) (billing units)
1 SFU 403,567 0 630,721 610,042 4,631
2 MFU 165,579 0 267,663 256,663 4,549
3 Hotel 46,886 0 73,511 76,234 1,832
4 Commercial 63,920 0 95,684 100,135 390
5 Small Restaurant 3,808 0 21,430 12,848 37
6 Medium Restaurant 3,713 0 21,890 13,123 16
7 Large Restaurant 8,605 0 52,081 31,224 10
8 Boat Slips 708 0 476 494 50
9 Hotel Del Coronado Laundry 25,557 0 104,655 106,217 1 10 Laundry Lounge 1,166 0 1,819 1,910 1
11 Port of San Diego 298 0 456 477 1
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24 12 School 17,382 0 27,122 28,383 20
13 Hospital 7,469 0 11,674 12,307 7
14 Navy NAB 0 130,711 0 0 1
15 Navy NASNI 0 366,645 0 0 1
16 Navy Coastal Campus 6,329 0 11,361 12,018 1
17 Total 754,987 497,357 1,320,543 1,262,075 11,548
Customer Class Revenue Requirement (Units of Service x $/Unit Cost of Service) $5.20 $3.84 $0.43 $0.64 $69.72
Line Unit Cost of Service per ccf per ccf per Pound per Pound per Billing Unit Total
18 SFU $2,099,249 $0 $270,376 $390,689 $322,857 $3,083,171 19 MFU $861,297 $0 $114,741 $164,374 $317,140 $1,457,553 20 Hotel $243,889 $0 $31,513 $48,822 $127,721 $451,944
21 Commercial $332,495 $0 $41,018 $64,129 $27,189 $464,831 22 Small Restaurant $19,810 $0 $9,186 $8,228 $2,580 $39,804 23 Medium Restaurant $19,313 $0 $9,384 $8,405 $1,115 $38,217 24 Large Restaurant $44,763 $0 $22,326 $19,997 $697 $87,783 25 Boat Slips $3,681 $0 $204 $316 $3,486 $7,688
26 Hotel Del Coronado Laundry $132,941 $0 $44,863 $68,024 $70 $245,898 27 Laundry Lounge $6,067 $0 $780 $1,223 $70 $8,140
28 Port of San Diego $1,548 $0 $196 $306 $70 $2,119
29 School $90,416 $0 $11,626 $18,177 $1,394 $121,614
30 Hospital $38,849 $0 $5,004 $7,882 $488 $52,224
31 Navy NAB $0 $501,777 $0 $0 $70 $501,846
32 Navy NASNI $0 $1,407,483 $0 $0 $70 $1,407,552
33 Navy Coastal Campus $32,919 $0 $4,870 $7,696 $70 $45,555 34 Total Revenue Requirement $3,927,237 $1,909,259 $566,088 $808,269 $805,086 $8,015,939 Attachment 1
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25 5. RATE CALCULATION
The final step in the COS process is the calculation of rates for each customer class. The is accomplished using the following formula:
Customer Class Revenue Requirement / Billed Units =
$ Rate per Billing Unit
I. RATE CALCULATION FOR NON-NAVY CUSTOMERS
Table 5-1 shows the calculation of proposed FY 2027 rates for the City’s non-Navy wastewater customers. The rates shown are based on the City’s existing rate structure without modification. The revenue requirement (i.e., cost of service) for each class of customers shown in Table 5-1 was calculated in Table 4-14. As shown in Line 17 of Table 5-1, the FY 2027 COS for non-Navy customers is $6.06 million ($6,060,984). The proposed FY 2027 rates for these customers are projected to produce the same level of revenue.
Table 5-1 Rate Calculation for Non-Navy Customers
Line Customer Class with Monthly Fixed Charges Total COS Billing Units Proposed $/Month Fixed Charge
1 SFU $3,083,171 4,631 $55.48
2 MFU $1,457,553 4,549 $26.70
3 Hotel $451,944 1,832 $20.56
4 Commercial $464,831 390 $99.32
5 Small Restaurant $39,804 37 $89.65
6 Medium Restaurant $38,217 16 $199.05
7 Large Restaurant $87,783 10 $731.52
8 Boat Slips $7,688 50 $12.81
9 Total $5,630,990
Customer Classes with Commodity Charges Total COS Flow (ccf) Proposed $/ccf Commodity Rate
10 Hotel Del Coronado Laundry $245,898 35,745 $6.88
11 Laundry Lounge $8,140 1,592 $5.11
12 Port of San Diego $2,119 398 $5.33
13 School $121,614 23,668 $5.14
14 Hospital $52,224 9,678 $5.40
15 Total $429,994
16 17 Total Non-Navy COS $6,060,984
II. RATE CALCULATION FOR NAVY CUSTOMERS
Table 5-2 shows the calculation of proposed FY 2027 Navy rates. The FY 2027 Navy revenue requirement for flow is $1.94 million ($1,942,388) from Line 4. The revenue requirement for Coastal Campus strength is $12,567 as shown in Line 17. The proposed FY 2027 Navy rates are projected to produce rate revenues of $1.95 million ($1,954,9549) in FY 2027.
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26 Table 5-2 FY 2027 Navy Rate Calculation
Flow-Based Cost of Service at Each Navy Facility
Line Navy Facility Flow
COS
Flow Transp.
COS
Fixed
COS Total COS
1 Navy NAB $501,777 $70 $501,846
2 Navy NASNI $1,407,483 $70 $1,407,552
3 Navy Coastal Campus $32,919 $70 $32,989
4 Combined Total $32,919 $1,909,259 $209 $1,942,388
Flow-Based Units of Service at Each Navy Facility
Navy Facility Flow
(MG)
Flow Transp.
(MG)
Total Flow
(MG)
5 Navy NAB 0 97.78 97.78
6 Navy NASNI 0 274.27 274.27
7 Navy Coastal Campus 6.50 0 6.50
8 Combined Total 6.50 372.05 378.55
Flow-Based Rate Calculation at Each Navy Facility (Total COS / Flow = $/MG) Navy Facility Total COS Flow (MG) $/MG
10 Navy NAB $501,846 97.78 $5,132.47
11 Navy NASNI $1,407,552 274.27 $5,132.01
12 Navy Coastal Campus $32,989 6.50 $5,076.25
13 Combined Total (1) $1,942,388 378.55 $5,131.17
Coastal Campus Strength Rates ($/1,000 Pounds)
Strength Parameter COS Pounds Pounds
(Thousands)
$/1,000
Pounds
15 BOD $4,870 11,361 11.36 $428.68
16 TSS $7,696 12,018 12.02 $640.43
17 Total Strength $12,567
Summary Navy Cost of Service
Flow Flow Transportation Fixed Strength Total
18 $32,919 $1,909,259 $209 $12,567 $1,954,954
(1) All Navy locations are charged the same combined average flow rate In summary, the FY 2027 revenue requirement for non-Navy customers is $6.06 million ($6,060,984) as shown in Line 17 of Table 5-1. The revenue requirement for Navy customers is $1.95 million ($1,954,954) as shown on Line 18 of Table 5-2. On a combined basis, these two amounts equal $8,015,938. This matches the City’s total system FY 2027 requirement referenced in previous tables throughout the report.
III. SUMMARY FY 2027 RATE COMPARISON
Table 5-3 shows a detailed comparison of current rates for each customer class and proposed FY 2027 rates developed as an outcome of the COS study.
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City of Coronado FY 2027 Wastewater Rate Study
27 Table 5-3 FY 2027 Detailed Rate Comparison
Line Customer Class Current Rate Proposed FY
2027 $ Difference % Difference
1 Customers Billed on a Monthly Fixed Charge Basis
2 SFU $48.75 $55.48 $6.73 13.81%
3 MFU $39.00 $26.70 ($12.30) (31.54%)
4 Hotel $19.72 $20.56 $0.84 4.25%
5 Commercial $58.94 $99.32 $40.38 68.52%
6 Small Restaurant $44.73 $89.65 $44.92 100.42%
7 Medium Restaurant $203.21 $199.05 ($4.16) (2.05%)
8 Large Restaurant $616.62 $731.52 $114.90 18.63%
9 Boat Slips $7.66 $12.81 $5.15 67.28%
10 11 Customers Billed on a $/ccf Basis
12 Hotel Del Coronado Laundry $5.38 $6.88 $1.50 27.87%
13 Laundry Lounge $4.52 $5.11 $0.59 13.12%
14 Port of San Diego $4.41 $5.33 $0.92 20.75%
15 School $4.46 $5.14 $0.68 15.21%
16 Hospital $4.69 $5.40 $0.71 15.06%
17 18 Navy (Rates Per MG, Transportation only)
18 Navy NAB $3,538.46 $5,132.47 $1,594.01 45.05%
20 Navy NASNI $3,538.46 $5,132.01 $1,593.55 45.04%
21 Navy Coastal Campus $3,538.46 $5,076.25 $1,537.79 43.46% 22 Combined Navy Flow Rate (1) $3,538.46 $5,131.17 $1,592.71 45.01% 23 24 Navy (Rates Per 1,000 Pounds)
25 Navy Coastal Campus - BOD $337.02 $428.68 $91.66 27.20% 26 Navy Coastal Campus - TSS $356.51 $640.43 $283.92 79.64% (1) All Navy locations are charged the same combined average flow rate IV. COMPARISON OF PROPOSED SFU AND MFU RATES
The current MFU rate of $39.00 is 80% of the current SFU rate of $48.75. This outcome was determined in the City’s 2014 COS study and based on the assumption that an MFU dwelling unit had water consumption of 200 gallons per day (gpd) and that a SFU dwelling unit had water consumption of 250 gpd (200/250 = 80%). The assumptions from the 2014 study no longer reflect actual usage characteristics.
The proposed FY 2027 MFU rate of $27.60 is 49.7% of the proposed SFU rate of $55.48 (Lines 2 and 3 of Table 5-3). This outcome is based on long-term changes in the water consumption characteristics of each customer class.
For example, an analysis of FY 2022-23 water consumption data from Cal Am indicates that average MFU water consumption is 88.0 gpd while average SFU water consumption is 244.7 gpd. The ratio of these two usage metrics is 35.9% (88/244.7 = 35/9%). The gpd usage for SFU and MFU customers developed in the COS study is closer to estimates made in the City’s wastewater system engineering master plan. The master plan recommended that MFU gpd usage of 100 gpm and SFU gpd usage of 220 gpm. The ratio of these two values is 45.5%. Table 5-4 shows an excerpt from Table 3-8 of the engineering master plan.
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City of Coronado FY 2027 Wastewater Rate Study
28 Table 5-4 SFU and MFU GPD per Dwelling Unit (2015 Master Plan) Land Use Recommendation Range
Single Family (gpd/ADU) (1) 220 140 – 260
Multi-Family (gpd/ADU) 100 - 170
(1) The estimated average flow for the SFU customer class may include the estimated flow from Accessory Dwelling Units (ADUs) that are located on the same parcel.
V. PROPOSED RATES THROUGH FY 2031
Table 5-5 shows proposed rates for the 5-year period FY 2027 – FY 2031. The projected rates shown for FY 2027 – FY 2031 reflect the annual percentage rate revenue adjustments developed as part of this financial planning process (see Table 1-1, Table 1-2, or Table 3-8). Specifically, 7.0% in FY 2027 and 0.0% in FY 2028, FY 2029, and FY 2030.
Table 5-5 Proposed Rates Through FY 2031
Line Customer Class Current FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 1 SFU $48.75 $55.48 $60.20 $65.31 $70.86 $76.89
2 MFU $39.00 $26.70 $28.97 $31.43 $34.10 $37.00
3 Hotel $19.72 $20.56 $22.31 $24.20 $26.26 $28.49
4 Commercial $58.94 $99.32 $107.77 $116.93 $126.86 $137.65 5 Small Restaurant $44.73 $89.65 $97.27 $105.54 $114.51 $124.24 6 Medium Restaurant $203.21 $199.05 $215.97 $234.32 $254.24 $275.85 7 Large Restaurant $616.62 $731.52 $793.70 $861.17 $934.36 $1,013.79 8 Boat Slips $7.66 $12.81 $13.90 $15.08 $16.37 $17.76
9 Hotel Del Coronado Laundry $5.38 $6.88 $7.46 $8.10 $8.79 $9.53 10 Laundry Lounge
(Laundromat) $4.52 $5.11 $5.55 $6.02 $6.53 $7.09
11 Port of San Diego $4.41 $5.33 $5.78 $6.27 $6.80 $7.38 12 School $4.46 $5.14 $5.58 $6.05 $6.56 $7.12
13 Hospital $4.69 $5.40 $5.85 $6.35 $6.89 $7.48
14 Navy NAB
(Transportation Only) $3,538.46 $5,131.17 $5,567.32 $6,040.55 $6,553.99 $7,111.08 15 Navy NASNI
(Transportation Only) $3,538.46 $5,131.17 $5,567.32 $6,040.55 $6,553.99 $7,111.08 16 Navy Coastal Campus
(Transportation Only) $3,538.46 $5,131.17 $5,567.32 $6,040.55 $6,553.99 $7,111.08 17 Navy Coastal Campus
(BOD Strength) $337.02 $428.68 $465.12 $504.65 $547.55 $594.09 18 Navy Coastal Campus
(TSS Strength) $356.51 $640.43 $694.87 $753.93 $818.01 $887.54 Attachment 1
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City of Coronado FY 2027 Wastewater Rate Study
29 6.ALTERATIVE RATE
STRUCTURES
I. CONSIDERATION OF ALTERNATIVE RATE STRUCTURES
The City’s current wastewater rate structure is complex given its use of several types of billing units. It is also different from other types of rate structures commonly used by California wastewater utilities due to its numerous unique customer specific rate classes. Finally, limitations of the City’s access to Cal Am water consumption data make developing cost-of-service based rates more challenging.
During the COS process, Raftelis considered alternative rate structuresfor the City’s wastewater utility. For example, a rate structure in which each major customer class or group of customers pays a unique commodity rate, and all customers pay a common monthly fixed charge. The unique commodity rate would be based on the strength loading and return flow characteristics of each major customer class or group of customers. The common commodity rate would reflect the fact that the cost of the customer service and billing functions do not vary by volume of customer discharges. Table 6-1 shows a hypothetical rate structure of this type.
Table 6-1 Hypothetical Wastewater Rate Structure
Customer Class Rate/ Chage
Commodity Rates
SFU and MFU $3.50/ccf
Commercial Low Strength $3.50/ccf
Commercial Medium Strength $5.85/ccf
Commercial High Strength $7.90/ccf
Monthly Fixed Charge
$20/month per account
or
$20/month per Equivalent Dwelling Unit
None of the alternative rate structures considered by Raftelis were presented in this report because they cannot be successfully implemented given the lack of access to customer specific water consumption data. In order to move to an alternative rate structure of the type shown in Table 6-1, the City’s utility billing system must have the ability to access and process the metered water consumption volumes for all wastewater customer accounts. This information can then be used to: 1) consider the implementation of a simpler and more contemporary rate structure, 2) efficiently bill more types of customers using $/ccf commodity charges; and 3) more efficiently conduct rate COS studies on a routine basis.
II. RECOMMENDATION
To the extent possible, the City should work with Cal Am so that water consumption data for all customers is obtained and assigned to each wastewater customer account. This information can then be used to: 1) consider the implementation of a simpler and more contemporary rate structure, 2) efficiently bill more types of customers using $/ccf commodity charges; and 3) conduct rate COS studies on a routine basis.
Attachment 1
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March 17, 2026 City of Coronado Page 199
FY 2027-2031 Proposed Rates by Customer Classification
Line Customer Class Current FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Flat Rates (Monthly)
1 Single Family Unit (SFU) $48.75 $55.48 $60.20 $65.31 $70.86 $76.89 2 Multi-family Unit (MFU) $39.00 $26.70 $28.97 $31.43 $34.10 $37.00 3 Hotel (per room) $19.72 $20.56 $22.31 $24.20 $26.26 $28.49 4 Commercial $58.94 $99.32 $107.77 $116.93 $126.86 $137.65 5 Small Restaurant (up to 50
seats) $44.73 $89.65 $97.27 $105.54 $114.51 $124.24
6 Medium Restaurant (51 to 150
seats) $203.21 $199.05 $215.97 $234.32 $254.24 $275.85
7 Large Restaurant (150 or more
seats) $616.62 $731.52 $793.70 $861.17 $934.36 $1,013.79 8 Boat Slips $7.66 $12.81 $13.90 $15.08 $16.37 $17.76
9 Hotel Del Coronado Laundry $5.38 $6.88 $7.46 $8.10 $8.79 $9.53 10 Laundry
Lounge (Laundromat) $4.52 $5.11 $5.55 $6.02 $6.53 $7.09 Flow Based Rates (Per HCF)
11 Port of San Diego $4.41 $5.33 $5.78 $6.27 $6.80 $7.38 12 School $4.46 $5.14 $5.58 $6.05 $6.56 $7.12
13 Hospital $4.69 $5.40 $5.85 $6.35 $6.89 $7.48
Navy Rates – Transportation (Per MG)
14 Navy NAB
(Transportation Only) $3,538.46 $5,131.17 $5,567.32 $6,040.55 $6,553.99 $7,111.08 15 NASNI Navy
(Transportation Only) $3,538.46 $5,131.17 $5,567.32 $6,040.55 $6,553.99 $7,111.08 16 Navy Coastal Campus
(Transportation Only) $3,538.46 $5,131.17 $5,567.32 $6,040.55 $6,553.99 $7,111.08 Navy Rates – Treatment (Per 1,000 Pounds)
17 Navy Coastal Campus
(BOD Strength) $337.02 $428.68 $465.12 $504.65 $547.55 $594.09 18 Navy Coastal Campus
(TSS Strength) $356.51 $640.43 $694.87 $753.93 $818.01 $887.54 Attachment 2
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NOTICE OF PUBLIC HEARING
NOTICE OF PUBLIC HEARING ON PROPOSED WASTEWATER RATES
NOTICE IS HEREBY GIVEN that the City Council of the City of Coronado will hold a Public Hearing at a regular meeting of the City Council of the City of Coronado on May 5, 2026, at 4:30 p.m., or as soon as possible thereafter as the matter can be heard in the Council Chamber of City Hall, 1825 Strand Way, Coronado, California, 92118 for the purpose of considering an increase in rates for sewer services effective July 1, 2026, with annual increases each July 1, through 2030.
PURPOSE OF PROPOSED RATE INCREASES
The City Council will consider proposed changes to the maximum allowable Wastewater Services fees charged by the City for Fiscal Years 2027-2031. Adjustment of the wastewater rate is being proposed due to the increased costs of providing wastewater services to the residential and business communities. Revenues derived from the wastewater rates are used solely for the actual and necessary expenses of providing wastewater services to customers.
The purpose of the proposed rate increases is to allow the City to collect sufficient revenue to enable it to continue providing wastewaterservice to its customers in the face of increasing capital, operating and maintenance costs. Additional detail regarding the City’s calculations of its costs of providing wastewater services and the proportionate allocation of the cost of those services to customers is documented in the FY 2027 Wastewater Rate Study dated February 16, 2026, prepared by the City’s rate consultant (Raftelis), see https://www.projectcoronado.org/.
PARTICIPATION IN THE HEARING AND PROTESTS
At the public hearing, at the above time and place, the City Council will consider spoken or written comments from any interested persons regarding the proposed wastewater rates.
Additionally, any property owner served by City wastewater services may submit a written protest to the proposed wastewater rates (for the purpose of submitting written protests, any tenant obligated to pay the wastewater rates is considered as a property owner); however, in order for a written protest to be counted by the City, the written protest must: (a) be in writing in paper form (emails or spoken protests will not be counted), (b) identify the parcel for which the protest is filed (e.g., by street address or Assessor’s Parcel Number), (c) identify the property owner (or tenant) of the parcel with printed name and signed original, (d) clearly state the property owner (or tenant) opposes the proposed wastewater rates, and (e) be received by the City prior to the close of public hearing. The City will receive written protests either: (1) delivered to Attn: City Clerk, City of Coronado, 1825 Strand Way, Coronado, California 92118, by 4:30 p.m., May 5, 2026, or (2) filed with the City Clerk in the City Council Chambers during, and prior to the conclusion of, the public hearing. Mailed written protests received by the City after the close of the public hearing will not be counted, even if they were postmarked earlier.
After the public hearing is closed, the City Clerk will provide the City Council a final tabulation of the number of timely written protests received by the City. Only one written protest per parcel will be counted. If timely written protests are filed on behalf of a majority Attachment 3
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of the parcels that receive City wastewater service, the increased wastewater rates will not be adopted by the City.
There is a 120-day statute of limitations for any judicial action to challenge the proposed wastewater rates described in this notice (per Government Code Section 53759). If you challenge the proposed wastewater rates in court, you may be limited to raising only those issues you or someone else raised at the public hearing.
PROPOSED INCREASES
The information in the table below shows separate columns for wastewater rates that are currently in effect, and the proposed rate increases effective July 1, 2026 (for FY 2027), with annual increases each July 1 thereafter, with the last increase on July 1, 2030 (for FY 2031).
The table identifies rows for the relevant rates for each identified customer class, including:
(a) Flat Rates (Monthly), for which the City may charge the identified rate per month, or the City may charge the identified rate times twelve on an annual basis through the tax rolls; (b) Flow Based Rates (per HCF), for which the City charges the identified rate times the number of HCF (hundred cubic feet) of water used by the customer; (c) Navy Rates – Transportation (per MG), for which the City charges the identified rate times the number of MG (million gallons) of water used by the customer, and (d) Navy Rates – Treatment (per 1,000 pounds), for which the City charges the identified rate times the number of 1,000 pounds of BOD (biochemical oxygen demand) and TSS (total suspended solids).
WASTEWATER RATES AND PASS-THROUGH
In accordance with Government Code Section 53756, the City may pass -through increases in costs for sewage treatment or wastewater treatment. Wastewater rates provide the revenue needed to pay for the staff, supplies and capital projects required to maintain the City’s wastewater collection and conveyance system, including costs imposed by the City partner, Metro JPA, to provide transportation and treatment of the City’s wastewater. Estimated flow and treatment costs are factored into the proposed rates. Should the actual costs of treatment exceed the estimated cost, the City may pass that increase through to customers. Additional information on the pass-through methodology and noticing requirements can be found at https://www.projectcoronado.org/.
Proposed Monthly Sewer Charge Rate By Fiscal Year (FY 2027-2031) Line Customer Class Current FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Flat Rates (Monthly)
1 Single Family Unit (SFU) $48.75 $55.48 $60.20 $65.31 $70.86 $76.89 2 Multi-family Unit (MFU)
(per unit) $39.00 $26.70 $28.97 $31.43 $34.10 $37.00
3 Hotel (per room) $19.72 $20.56 $22.31 $24.20 $26.26 $28.49 Attachment 3
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March 17, 2026 City of Coronado Page 202
4 Commercial (per
account) $58.94 $99.32 $107.77 $116.93 $126.86 $137.65
5 Small Restaurant (up to
50 seats) $44.73 $89.65 $97.27 $105.54 $114.51 $124.24
6 Medium Restaurant (51
to 150 seats) $203.21 $199.05 $215.97 $234.32 $254.24 $275.85 7 Large Restaurant (150 or
more seats) $616.62 $731.52 $793.70 $861.17 $934.36 $1,013.79 8 Boat Slips (per slip) $7.66 $12.81 $13.90 $15.08 $16.37 $17.76 Flow Based Rates (Per HCF)
9 Hotel Del Coronado
Laundry $5.38 $6.88 $7.46 $8.10 $8.79 $9.53
10 Laundry Lounge
(Laundromat) $4.52 $5.11 $5.55 $6.02 $6.53 $7.09
11 Port of San Diego $4.41 $5.33 $5.78 $6.27 $6.80 $7.38 12 School $4.46 $5.14 $5.58 $6.05 $6.56 $7.12
13 Hospital $4.69 $5.40 $5.85 $6.35 $6.89 $7.48
Navy Rates – Transportation (Per MG)
14 Navy NAB
(Transportation Only) $3,538.46 $5,131.17 $5,567.32 $6,040.55 $6,553.99 $7,111.08 15 NASNI Navy
(Transportation Only) $3,538.46 $5,131.17 $5,567.32 $6,040.55 $6,553.99 $7,111.08 16 Navy Coastal Campus
(Transportation Only) $3,538.46 $5,131.17 $5,567.32 $6,040.55 $6,553.99 $7,111.08 Navy Rates – Treatment (Per 1,000 Pounds)
17 Navy Coastal Campus
(BOD Strength) $337.02 $428.68 $465.12 $504.65 $547.55 $594.09 18 Navy Coastal Campus
(TSS Strength) $356.51 $640.43 $694.87 $753.93 $818.01 $887.54 For further information, contact the Coronado Public Services & Engineering Department, 101 B Ave, Coronado, California or call (619) 522-7380; or visit:
https://www.projectcoronado.org/ .
By: Kelsea Holian, City Clerk
Attachment 3
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CITY COUNCIL STAFF REPORT
Fiscal Year (FY) 2026-27 Coronado Tourism Improvement District (CTID) Advisory Board Annual Report/Management Plan and Resolution of Intent to Continue to Levy Assessments on Four Hotel Businesses
RECOMMENDATION
Review and approve the FY 2026-27 Annual Report and Management Plan from the CTID Advisory Board; consider adoption of “A Resolution of The City Council of the City of Coronado, California, Declaring its Intention to Continue to Levy Two One-Half Percent (0.5%) Assessments During Fiscal Year 2026-27 on Certain Hotel Businesses Within the Coronado Tourism Improvement District I and Coronado Tourism Improvement District II;” and set a public hearing date of Tuesday, April 21, 2026, for consideration of the continued levy assessment.
BACKGROUND
On June 15, 2010, the City Council adopted Ordinance No. 2013 establishing the first Coronado Tourism Improvement District (CTID I). CTID I was formed under the Parking and Business Improvement Area Law of 1989 and incorporated into the Coronado Municipal Code (CMC) under Chapter 16.14. On June 16, 2015, the City Council adopted Ordinance No. 2050 amending CMC Chapter 16.14 to establish the second Coronado Tourism Improvement District (CTID II). CTID II was formed pursuant to the Property and Business Improvement District Law of 1994. The formation of the first CTID in 2010 was in reaction to the downturn in Coronado’s tax revenues after the Great Recession of 2008.
Tourism Improvement Districts are a variation of Business Improvement Districts (BIDs), whose formation and function are authorized in California’s Street and Highways Code. The concept of BIDs is that they are best positioned to market, promote, and enhance their own economic activity. Under this model, a local agency collects an assessment from selected businesses and distributes the funds in accordance with a work plan approved by the legislative body. Assessment revenues must be used only for activities authorized under the applicable state statutes governing the districts. The scope of allowable activities differs between the Parking and Business Improvement Area Law of 1989 and the Property and Business Improvement District Law of 1994, with the latter requiring that funded activities provide direct benefit to the assessed properties.
Because the two Coronado Tourism Improvement Districts were established under different statutory frameworks, CTID I allows certain activities that may provide broader destination benefits, while CTID II requires that assessment revenues be used specifically for the benefit of the assessed properties.
In 2018, Discover Coronado, a nonprofit organization created to administer the proceeds of CTID I and II, was established. The Discover Coronado Board of Directors consists of nine members representing the assessed hotel properties, community organizations, and local businesses, and comprises the same members as the CTID Advisory Board.
Pursuant to CMC Section 16.14.080 and Sections 36530 and 36533 of the 1989 Law, the CTID Advisory Board must submit an Annual Report and Management Plan outlining the board's activities during the current year and the proposed use of assessment funds for the upcoming fiscal year. After reviewing and approving the Annual Report and Management Plan, Section 36534 of the 1989 Law further requires that Item 8.d
March 17, 2026 City of Coronado Page 204
the City Council shall consider adopting a Resolution of Intent to reauthorize the assessments for CTID I and II for the proposed programs for the next fiscal year. If adopted, the Resolution of Intent schedules a public hearing to receive written or oral protests from the assessed hotel properties regarding the continued operation of either district and/or the one-half percent (0.5%) assessment for each district.
ANALYSIS
The Discover Coronado Annual Report and Management Plan summarizes the activities and accomplishments for the current FY 2025-26 year and outlines key priorities for the upcoming year.
For FY 2026-27, Discover Coronado has outlined the following goals for District One (CTID I) and District Two (CTID II):
District One Management Plan Goals:
1) Invest in AI accuracy abilities
2) Update group marketing assets and materials
3) Expand partnerships with Visit California and SDTA
4) Raise awareness of Discover Coronado merits
District Two Management Plan Goals:
1) Begin development of mobile-centric website
2) Foster community strategies with NASCAR
3) Elevate social media content and reach
4) Advocate for long-term water quality solutions
Next Steps
If the City Council approves the FY 2026-27 Annual Report and Management Plan and adopts the Resolution of Intent, notice of the public hearing will be published and letters noting the renewal and protest hearing date will be sent to all assessed parties (the four major hotels) within seven days of the resolution’s adoption.
FISCAL IMPACT
The City receives $5,000 from both CTID I and CTID II to cover the cost of an annual financial review, accounting costs, and other in-kind services. The CTID Annual Report projects FY 2026-27 assessments will generate $1,150,000 in revenues each for CTID I and CTID II, for a total of $2,300,000.
ALTERNATIVE
1) Make modifications to the Annual Report and Management Plan and approve it, as modified; and/or 2) Not approve the Annual Report and Management Plan or exclude either CTID I or CTID II from the Resolution of Intent and direct staff to bring back a Resolution of Intention to disestablish one or both Districts.
CALIFORNIA ENVIRONMENTAL QUALITY ACT
This action is not subject to CEQA.
PUBLIC NOTICE
No notice required.
ATTACHMENTS
1. Resolution No. 2026-09
2. Discover Coronado Annual Report
Submitted By: City Manager's Office / Kelli Maples
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Attachment 1
RESOLUTION NO. 2026-09
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CORONADO, CALIFORNIA, DECLARING ITS INTENTION TO
CONTINUE TO LEVY TWO ONE-HALF PERCENT (0.5%)
ASSESSMENTS DURING FISCAL YEAR 2026-27 ON CERTAIN
HOTEL BUSINESSES WITHIN THE CORONADO TOURISM
IMPROVEMENT DISTRICT I AND CORONADO TOURISM
IMPROVEMENT DISTRICT II
WHEREAS, the City has the authority to establish a business improvement district pursuant to the Parking and Business Improvement Area Law of 1989 (“1989 Law”), Section 36500 et seq. of the California Streets and Highways Code and Property and Business Improvement District Law of 1994 (“the 1994 Law”, Section 36600 et seq. Of the California Streets and Highways Code; and
WHEREAS, the City Council on June 15, 2010, passed Ordinance No. 2013 establishing the Coronado Tourism Improvement District I (“CTID I”) pursuant to the 1989 Law; and WHEREAS, the City Council at that time also established the CTID Advisory Board to act in compliance with the 1989 Law to oversee the activities of the District; and WHEREAS, the City Council on June 16, 2015, passed Ordinance No. 2050 establishing the Coronado Tourism Improvement District II (“CTID II”) pursuant to the 1994 Law; and WHEREAS, the City Council at that time also established the CTID Advisory Board to act in compliance with the 1989 Law to oversee the activities of District I; and WHEREAS, the CTID Advisory Board filed an Annual Report with the Coronado City Clerk that outlined the activities of CTID I and II conducted in Fiscal Year 2025-26 and the proposed activities for Fiscal Year 2026-27 and contained all the elements required by Streets and Highways Code Section 36533(b); and
WHEREAS, on March 17, 2026, the Coronado City Council accepted and approved the Annual Report/Management Plan for consideration; and
WHEREAS, pursuant to state law, the City must adopt a new resolution each year of its intent to levy an assessment for each CTID for that fiscal year.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Coronado as follows:
Section 1. The recitals set forth herein are true and correct.
Section 2. The Annual Report and Management Plan is hereby received and approved, as submitted, with said Report being on file in the City Clerk’s Office. The Report contains a full and detailed description of the improvements and activities to be provided during Fiscal Year 2026-27, the boundaries of the area, and the proposed assessments to be levied upon the businesses within both CTID I and II for Fiscal Year 2026-27.
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Section 3. Pursuant to the Parking and Business Improvement Area Law of 1989 and the Property and Business Improvement District Law of 1994, the City shall levy and collect an annual assessment in both CTID I and II beginning on July 1, 2026, for Fiscal Year 2026-27.
Section 4. There shall be no change in the boundaries, assessment amount or number of assessed hotels for either CTID I or II. Both CTID I and II include those hotels within the City that have 90 or more rooms. These hotels include the Hotel del Coronado, Loews Coronado Bay Resort, Coronado Island Marriott Resort, and Glorietta Bay Inn.
Section 5. The City Council hereby declares that the types of activities to be funded by the levy of assessments against the assessed hotels within CTID I and II shall be activities “to enrich our community by positioning Coronado, and its resorts, as a premier meeting destination” in a way that directly benefits the assessed hotels located and operating within each CTID boundary.
Section 6. A public hearing shall be held on April 21, 2026, in the City Council Chamber, at 1825 Strand Way, Coronado, California, at 4 p.m., or as soon thereafter as possible, as the date, place, and time to hold the public hearing required by Streets and Highway Code Section 36535. At the time of the public hearing, written and oral protests may be made. The form and manner of protests shall comply with Streets and Highways Code Sections 36524 and 36525.
This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify to the vote adopting this resolution.
PASSED, ADOPTED, AND APPROVED, by the City Council of the City of Coronado, California, at a regular meeting thereof this seventeenth day of March, 2026, by the following votes, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
APPROVED:
JOHN D. DUNCAN, Mayor of the
City of Coronado, California
ATTEST
KELSEA HOLIAN, City Clerk of the City
of Coronado, California
Item 8.d
March 17, 2026 City of Coronado Page 207
Discover Coronado | Annual Report FY26 | 1
Annual
Report
to Coronado City Council
Fiscal Year 2026
Managing Change
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 208
Discover Coronado | Annual Report FY26 | 2
From the Interim
Chairperson
Dear Council Members,
After serving several years as Treasurer,
it has been my privilege to return, on an
interim basis, to the role of Chairperson
following several unexpected retirements.
While leadership has shifted, the resolve
of Discover Coronado and my fellow Board
Members is unwavering. We will respond
decisively to confront the conditions
challenging our industry.
This annual report summarizes the many
changes Coronado Island has encountered
in FY26 and how we responded. These
responses have required fresh perspective
and a willingness to adapt.
The Discover Coronado Board represents
a broad cross-section of our community,
including the lodging, retail, food and
beverage, and service sectors. As we look
ahead to Fiscal Year 2027, there’s important
work ahead, and much at stake.
With this in mind, the Board Members and
I request renewal of the assessment that
funds the initiatives that we manage under
your direction.
At your service,
Claudia Ludlow
Interim Chair
Discover Coronado | Annual Report FY26 | 2
What’s New
in FY26?
Destination Sales Director ...........6
Video project investment.............6
Visit California takeover.................8
Signature Travel Event....................13
Leisure travel photos
and asset investment .....................14
NASCAR comes to Coronado.....15
Office space.........................................18 Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 209
Discover Coronado | Annual Report FY26 | 3
Transient Occupancy
Tax (TOT)
Since 2010, the work of Discover Coronado has strengthened Coronado’s second largest revenue stream. This tax, which is paid by overnight hotel guests, contributes to the City’s general fund which is used for various expenditures:
• City personnel and administrative support
• Police, Fire and Lifeguard operations
• Infrastructure repair and facility refurbishments
• Parks services and recreation programs
• Community grants given to local organizations
$23,500,000
FY27 Projection
$24,931,150
FY29 Projection
$24,205,000
FY28 Projection
$25,679,085
FY30 Projection
Discover Coronado | Annual Report FY26 | 3
Discover Coronado receives no portion of TOT collections.
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 210
Discover Coronado | Annual Report FY26 | 4
Elevate awareness
of organization
and work
Support services
that enhance
destination
Advocate to
address water
quality impacts
Fund research
that quantifies
sales conversion
Widen group
sales effort
Improve imagery
and content for
destination
Remain vigilant
to labor concerns
Increase leisure
guest outreach
Fulfillment
After feedback from community stakeholders, Discover Coronado commissioned a new strategic plan to guide the organization between FY26–FY28. Several of the initial priorities were completed in FY26:
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 211
Discover Coronado | Annual Report FY26 | 5
An unprecedented turnover in Board Members
occurred in the first half of FY26. Derik Morse, a
local businessperson with Bluewater Boathouse
Grill, joined the Board filling the vacated seat
reserved for Coronado MainStreet.
Jonathan Litvack, the presiding Chair, announced
his retirement from the Coronado Island Marriott
Resort as did Kate Berry, the Vice-Chair, who had
managed Loews Coronado Bay Resort.
In December 2025, Grant Dipman was
introduced as the Managing Director of Loews
Coronado Bay Resort and began serving in Q3
of FY26. He continues the work of Kate Berry.
Carlos Rodriquez Duran was named
General Manager of the Coronado
Island Marriott Resort in January 2026.
He continues the work of Jonathan Litvack.
Escalating costs from inflation and tariffs:
Rising prices for lodging, food and beverage,
transportation, and event services strain
meeting budgets and make leisure travel
feel less accessible.
Reduced international visitation: Stricter
immigration policies, long visa delays, and
global safety concerns have slowed overseas
travel to the U.S., impacting destinations
that rely on high-value international guests.
Volatile traveler behavior and late booking
patterns: Groups and leisure travelers are
booking closer to arrival, staying fewer
nights, and demanding more value. It makes
forecasting and staffing more challenging.
Economic headwinds affecting tourism-related
jobs: Broader U.S. job losses and uncertainty in
hospitality-adjacent sectors reduce consumer
confidence, limit business-travel spending, and
flatten demand for group meetings.
Change with Board of Directors
Challenges Ahead
Discover Coronado | Annual Report FY26 | 5
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 212
Discover Coronado | Annual Report FY26 | 6
Group Sales Recap
Group meetings are a cornerstone of Discover
Coronado’s strategy for year-round vitality.
These programs do more than fill rooms during
the off-season, they activate ballrooms, drive
food and beverage revenue and conference
services. Meetings impact the destination
through shopping, dining, and experiences
on Coronado’s coastline.
In FY26, Discover Coronado welcomed Shari
Stauder as Destination Sales Director, and her
influence was immediately felt. With a strong
emphasis on personal connection, Stauder
implemented inbound and outbound strategies
that elevated Coronado’s relevance and kept
the destination top-of-mind with meeting
planners nationwide.
In her travels since July, Stauder has showcased
Coronado’s distinctions in 14 cities, engaging
461 clients and converting interest into action.
These efforts strengthened off-season demand
and reinforced the destination’s reputation as
an exceptional place to meet, connect, and
recreate. Since the start of FY26, Stauder’s
outreach has resulted in 7 meetings confirmed
at Coronado’s resorts.
The group meetings industry faced notable
disruption this year as corporations contended
with rising operating costs, tariffs on inventory,
government shutdowns, and workforce
downsizing. These conditions led to widespread
cancellations and postponements nationwide.
In response, Discover Coronado’s Board of
Directors acted decisively so the resorts
remained competitive for the meetings that
were still moving forward.
At a time when many destinations reduced
spending, the Board chose a proactive course,
deploying reserves to protect and grow group
business. This included the establishment of a
$100,000 incentive fund to get clients to commit
to Coronado. Since July, $42,500 of the incentives
have been invested, which secured 27 meetings,
totaling in 14,057 occupied room nights. So
far, the incentives has generated $9,095,629
in revenue, a return of 191x the investment.
Because storytelling is essential in a constrained
marketplace, the Board further invested reserve
funds ($200,000) to strengthen the resorts’ visual
assets. Updated photography and video will
better portray the distinctions of the Coronado’s
resorts, keeping the destination a compelling
option for planners in a challenging year.
27 programs
$42,500
invested
$9,095,629
revenue
191x
return on
investment
Since July, incentives were
used to secure:
Discover Coronado | Annual Report FY26 | 6
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 213
Discover Coronado | Annual Report FY26 | 7
How Are Clients Reached?
Priority Markets
for Group Sales
New York
Philadelphia
Boston
Chicago
Dallas
Houston
Seattle
Atlanta
Las Vegas
Denver
Phoenix
Boston
Philadelphia
Miami
Palm Springs
Minneapolis
New York
Kansas City St. Louis
Atlanta
Chicago
Seattle
Map of Client Contact
Since July 1, 2025
SDTA SALES
DIRECTOR THIRD PARTY MEETING PLANNERS
COLLATERAL
MATERIALS/
WEBSITES
HOSTED FAMILIARIZATION TRIPS
HOSTED CLIENT EVENTS (OUTBOUND)
ORGANIZATION
SPONSORSHIPS SOCIAL MEDIACAMPAIGNS
SPONSORED INDUSTRY EVENTS FOCUS GROUP STUDIES
INDUSTRY
MARKETING
TRADESHOWS
HOTEL SITE
INSPECTIONS
REFERRALS
Discover Coronado | Annual Report FY26 | 7
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 214
Discover Coronado | Annual Report FY26 | 8
SDTA Summary
Since 2010, the San Diego Tourism Authority
(SDTA) has been one of Discover Coronado’s most
valuable partners—delivering high-impact services
otherwise beyond reach. Their national sales team
actively promotes Coronado’s resorts to group
meeting clients. In Calendar Year 2025, SDTA
generated 2,619 qualified leads, converting 93 of
the programs. These leads generated 38,870 room
nights in Coronado, an increase of 11% despite the
challenges facing the meetings industry.
In FY26, SDTA expanded its support with
targeted emails that keep Coronado a top
option for meeting planners.
SDTA also conducts focus group research for
Discover Coronado in key markets, offering insight
into competing destinations, planner preferences,
and buying habits—intelligence that strengthens
Coronado’s positioning.
Another major benefit is SDTA’s coordination of
familiarization trips, giving elite clients firsthand
exposure to Coronado’s meeting venues, culinary
innovations, and nightlife—often sealing the deal
for assessed resorts.
Finally, SDTA markets Coronado through its
national database of affluent prospective
travelers, showcasing the island’s beauty
and amenities. Various island businesses were
featured in 3 additional social media reels and
12 email campaigns in this partnership with the
San Diego Tourism Authority.
When in-person meetings
with planners are not feasible,
maintaining a strong and consistent
presence through strategic
marketing becomes essential.
Discover Coronado partners with
Blue Onion Media, a trusted firm
known for its media placement
expertise. They research, deploy,
and measure campaigns that keep
Coronado resorts on the radar of
meeting planners. These efforts
include digital, video, and email
campaigns, geo-targeted tradeshow
marketing, lead generation through
industry publications, keyword
search, and destination promotion
on Cvent, the industry’s leading
platform for meeting RFPs.
Since July, these efforts have
generated 28 million impressions
and 216,901 web visits business
leads, ensuring that Coronado
remains a top consideration for
group meetings. A close relationship
with Visit California produced a
unique opportunity in January 2026.
Discover Coronado took over the
extensive social media channels of
Visit California (3.2M followers) to
reach meeting planners prospecting
the west coast. This opportunity
came at no cost to Discover
Coronado and comes at a time
when group meeting numbers are
declining across the country.
Group
Marketing
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 215
Discover Coronado | Annual Report FY26 | 9
Economic
Impact Study
Quantifies impact of group
meetings during CY25
Coronado hosted more than 71,500 group
hotel visitors in 2025, an expansion of 28.2%
over the prior year. Best of all, most group
meetings occur during the off-season, when
Coronado’s resorts and local businesses need
customers and revenue. Each of the 71,500
visitors represent an average revenue value
of $1,615, equal to $415 per visitor per day
throughout Coronado Island.
Overall room demand in Coronado increased
to more than 424,000 room nights in
2024. Group travel accounted for 164,000
room nights, approximately 39% of total
room demand. Completion of hotel room
renovations at the Hotel del Coronado in
Q2 2025 significantly boosted hotel demand
gains through an increase in available rooms
for group travelers.
The 163,993 group room nights in 2025
generated $69 million in lodging spending
and $115.5 million in total visitor spending.
This includes visitor spending on
transportation, restaurants, retail,
recreation, and other services.
Business meetings continued to drive group
visitor room nights in 2025, increasing its
share significantly.
The rapid expansion of room supply in the
summer of 2025 induced strong growth of
group visitors as newly renovated spaces were
reopened to host large group events again.
71,515
group visitors to Coronado
$115.5 Million
visitor spending
$166.7 Million
total economic impact
$9.1 Million
local taxes
962
total jobs supported
Discover Coronado | Annual Report FY26 | 9
2024 2025
2025
Growth
Group room
nights 119,692 163,993 37%
Group
visitors 55,792 71,515 28.2%
Spending
per group
visitor
$1,512 $1,615 6.8%
Spending
per visitor
per day
$413 $415 0.5%
Summary of Group Market Profile
Study Headlines
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 216
Discover Coronado | Annual Report FY26 | 10
Total Hotel Room
Nights Sold
Coronado room nights sold increased 23.3%
in 2025, or around 80,200 room nights
Coronado Group
Nights Sold
Group room nights expanded 37% in 2025.
Due to finished renovations on hotel rooms,
supply dramatically increased over the prior
year, and facilitated significant year-over-year
demand growth.
Coronado Monthly
Group Nights Trends
Group hotel room nights sold measured
above 2024 levels in all months of the year,
except January and February. June saw the
largest change in group visitors year-over-year,
exploding 162.6% in 2025.
Coronado Hotel Room Nights Sold
Amounts in thousands
2021 2022 2023 2024 2025
Source: STR, Tourism Economics
424.3
344.1
419.5 397.4
319.5
Coronado Group Room Nights Sold
Amounts in thousands
2021 2022 2023 2024 2025
Source: STR, Tourism Economics
164.0
119.7
171.8 165.5
68.9 Coronado Group Room Nights Sold
Amounts in thousands
Source: STR, Tourism Economics
Coronado Hotel
Group Revenue
Group room revenue tallied $69 million
in 2025, a total increase of $19.2 million.
Group revenue growth was buoyed by the
completion of hotel renovations. As Coronado
hotels regained the room supply necessary
to hold group events, group room demand
and revenue rebounded in 2025.
2021 2022 2023 2024 2025
Source: STR, Tourism Economics
$69.0
$49.9
$66.4 $68.1
$24.8
Coronado Hotel Group Revenue
$ in millions
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
18 16
14 12
10 8
6 4
2 0
2024 2024
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 217
Discover Coronado | Annual Report FY26 | 11
Room Demand
Segmentation
While leisure remained the largest demand
segment, the group segment continued to
account for a substantial share of Coronado's
total room demand. The share of group
nights sold increased to 39% in 2025, after
reaching 36% in 2024.
Coronado Monthly
Hotel Occupancy,
by Segment
Group occupancy remained a key driver for
occupancy during the winter and spring
months (January through April). In addition,
group business represented a significant
share of occupancy in leisure-driven
summer months (June through August).
That growth is tied to the re-opening of
the Hotel del Coronado.
Occupancy Rates,
by Segment
The overall occupancy rate for Coronado
Hotels was 67.1% in 2025, roughly on par with
2024 levels. Group occupancy increased by
1.7 percentage points in 2025. The leisure
segment’s share of occupancy decreased by
1.7 percentage points to 41.1%.
Room Demand Segmentation
% share of total room nights
Room Demand Segmentation
% share of total room nights
Leisure
Leisure
Group
Group
2021 2022 2023 2024 2025
Source: STR, Tourism Economics
22%
78%
58% 59%
42% 41%
64%
36% 39%
61%
2021 2022 2023 2024 2025
Source: STR, Tourism Economics
43.7%
38.6% 39.0% 42.9% 41.1%
12.0%
27.5% 27.0% 24.2% 25.9%
Coronado Monthly Hotel Occupancy,
by Segment
% of available rooms
2024 2024
Source: STR, Tourism Economics
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
34 32 27
23 32 35 31 31 33
22 15
25 30
37 37
42 46
40 39
33 34
9 63 63
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 218
Discover Coronado | Annual Report FY26 | 12
Coronado Leisure
Hotel Occupancy
Leisure hotel occupancy outperformed 2024
in January, February, and from August to
December; a majority of the year 2025.
Average Daily Rate
(ADR)
In addition to increases in room supply and
demand, ADR in Coronado rose 1.3% year-overyear to $485 per room night.
This data was tabulated with group and guest reporting during Calendar Year 2025 at the four resorts that comprise Discover Coronado: Hotel del Coronado, Loews Coronado Bay Resort, Coronado Island Marriott Resort and the Glorietta Bay Inn.
Coronado Leisure Hotel Occupancy
% of available rooms
Average daily rate (ADR)
$ dollars
Source: STR, Tourism Economics
Source: STR, Tourism Economics
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2015 2017 2019 2021 2023 2025
80 70
60 50
40 30
20 10
0 $500
$450
$400
$350
$300
$250
$200
2024 2024
$332
$321
$423
$471 $479
$453
$485
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 219
Discover Coronado | Annual Report FY26 | 13
CALENDAR YEAR 2025
By The Numbers
67% (Flat)
occupancy
$485 (+1.3%)
average daily rate (ADR)
(+1.6%)
revenue per available
room (RevPAR)
Discover Coronado continues to strategically
invest in marketing that drives meaningful
economic impact for the island’s resorts and
local businesses. While the budget for group
meetings is more than double that of leisure
guest acquisition, the leisure travel program
consistently delivers strong returns and
helps smooth the seasonal fluctuations
of group business.
As prices rise, especially at the premium end of
the market, travelers are relying more heavily
on expert guidance from travel advisors to help
them prioritize value, flexibility and meaningful
experiences. Because of this, Discover Coronado
targeted elite travel agents who influence
decisions for the world’s most affluent travelers.
In September, the Hotel del Coronado hosted
the national convention of Signature Travel
Advisors, placing Coronado squarely in front
of top-producing agents. A new partnership
with Signature unlocked opportunities to
spotlight each assessed resort through
exclusive marketing platforms, high-impact live
presentations, and face-to-face networking.
It positioned Coronado as a premier luxury
destination for high-value leisure travel.
Our efforts remain focused on high-householdincome travelers in key source markets — including Portland, San Francisco, Seattle,
Phoenix, Los Angeles, Orange County, and
Denver — where demand for premium leisure
stays is most promising.
Leisure Guest Strategies
Discover Coronado | Annual Report FY26 | 13
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 220
Discover Coronado | Annual Report FY26 | 14
With a sense of urgency, as economic uncertainty led some travelers to postpone plans, Discover Coronado repurposed a portion of the FY26 budget to sustain and extend marketing exposure. This reinvestment was specifically designed to support visitation during the traditionally slower period from January through March, when local businesses most feel the impact of seasonality.
In August 2025, the organization refreshed its video and photo library capturing Coronado’s unique coastal charm. The assets were quickly turned into dynamic banner ads and video content that elevated the overall look of marketing efforts and website.
In October 2025, the Board received a comprehensive summary of public relations efforts. They have effectively supplemented paid marketing with coverage in key publications and strategic influencer partnerships. To address erosion in leisure travel, the Board expanded PR outreach to engage affluent travelers who are less impacted by broader economic challenges. In January, Travel + Leisure featured Coronado as a luxury destination during the off-season. Since July these public relations efforts have generated 60 pieces of coverage through publications with an audience reach of 910 million.
5.4 Million
impressions
43,900
clicks
22,505
website visitors
Since July, campaigns across
Facebook, Instagram, YouTube,
and other digital channels
have generated:
The campaign has delivered:
significantly broadening Coronado’s
visibility among affluent audiences.
1,400 verified visitors
have been attributed to the campaign
since the start of the fiscal year
Because San Diegans are unlikely to occupy hotel rooms, Discover Coronado does not market in San Diego.
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 221
Discover Coronado | Annual Report FY26 | 15
While water quality along Coronado’s coastline
has shown meaningful improvement since
2024, the work is far from complete. In
May 2026, the Executive Director will stand
alongside a large delegation from CalTravel,
the advocacy arm of Visit California, to engage
state leaders in Sacramento. This coordinated
effort will champion multiple tourism causes,
including state support for permanent, longterm solutions to the Tijuana River sewage crisis. This issue is critical to public health,
environmental stewardship, and the vitality
of the assessed resorts.
In January, the Executive Director joined other
San Diego leaders in briefing Congresswoman
Sara Jacobs on impacts of tariffs, travel visa
policy, immigration enforcement and sewage
water containment.
Discover Coronado’s partnership with Sports
San Diego helped, in a small way, to foster a
major new attraction in June. The three-day
NASCAR event at Naval Air Station North Island
will put Coronado in the national TV spotlight,
introducing the destination to an entirely new
audience of travelers. This marquee event is
expected to draw high-income households
eager to experience the Navy’s one-of-a-kind
racetrack and Coronado’s small-town charm.
Discover Coronado is exploring ways to
bring NASCAR fans to local retail outlets and
restaurants so the entire destination benefits.
Advocacy
NASCAR
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 222
Discover Coronado | Annual Report FY26 | 16
Who is
Discovering
Coronado
Island?
Discover Coronado uses data to measure
hotel occupancy, and consumer profiles.
Visitor data from Calendar Year 2025:
1.5 days
length of stay for most visitors
72%
of all guests were stayed overnight
61%
of all guests visited for the first time
81%
of all guests arrived from California
(followed by Arizona, Texas, Nevada and Florida)
The largest group of all guests:
• Earned $150,000+ annually (24%)
• Were age 65+ (16%)
Top 5 points of interest:
1. Hotel del Coronado
2. Coronado Golf Course
3. Balboa Park
4. Spreckels Park
5. San Diego Zoo
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 223
Discover Coronado | Annual Report FY26 | 17
While the assessment that funds Discover
Coronado is designed to support the resorts,
the organization budgets over $100,000 for
local initiatives that enhance the destination
as a whole. Notable projects include extending
investments for the artistic banners that line
Orange Avenue ($36,000) and the community’s
holiday tree ($30,000). Funds are also held for
community initiatives such as wrapping the
Free Summer Shuttles (approximately $30,000.)
DiscoverCoronado.com includes a dedicated
events page that serves as an easy, go-to
resource for what’s happening on the island,
This popular web page is supported by strategic
partnerships and targeted leisure marketing.
Working with the SDTA, these efforts include
social media reels and monthly email
campaigns sent to 125,000 affluent subscribers
through vendors like eTarget. When promoting
events such as the Art & Wine Festival, Flower
Show, and MotorCars on MainStreet, the
emails consistently achieve 30% open rates—
well above the hospitality industry average.
The 2025 Coronado Job Fair connected
residents of all ages with local employment
opportunities at the centrally located Winn
Room. Recruiters from island employers—
including hotels and the Parks & Recreation
Department—reported 214 open positions,
many at Hotel del Coronado. Within 90 days,
employers said at least 40% of those positions
received qualified candidates and resumes,
showing the event’s measurable impact.
Community
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 224
Discover Coronado | Annual Report FY26 | 18
A small but veteran team of three executes the
directives and work plan established by the Board
of Directors. Under the leadership of the Officers,
Executive Director Todd Little oversees the
organization’s mission, broad scope of work, and
daily operations, including all financial systems,
guest acquisition strategies, and branding.
Destination Sales Director Shari Stauder leads
group meeting efforts and manages key client
relationships, ensuring strong results in the
conference sector. Adriana Villagrana leads
multiple programs and advises the leadership
team on strategies that ensure operational
continuity and marketing excellence.
In late 2025, Discover Coronado relocated
its office to 1033 B Avenue in Coronado.
Todd Little
Executive Director
Adriana Villagrana
Project Manager
Shari Stauder
Destination Sales Director
Dedicated Staff
FY27 Management Goals
District One
• Invest in AI accuracy abilities
• Update group marketing assets
and materials
• Expand partnerships with
Visit California and SDTA
• Raise awareness of
Discover Coronado merits
District Two
• Begin development of
mobile-centric website
• Foster community strategies
with NASCAR
• Elevate social media content
and reach
• Advocate for long-term
water quality solutions
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 225
Discover Coronado | Annual Report FY26 | 19
Recognizing the importance of attracting travelers to Coronado during the off-season, Discover Coronado’s sponsorship program helps sustain visitor activity when the community benefits most.
Community Sponsorships
1. Historic Home Tour
2. Holiday Parade and Open House
3. MotorCars on MainStreet
4. Coronado Island Film Festival
5. Coronado Flower Show
6. PAWS Ruff Run
7. Taste of Coronado
8. Rady’s Turkey Trot
9. Valentine’s Day 10K
10. Navy Bridge Walk/Run
Each year, the Board of Directors allocates $20,000 to support off-season events, awarding ten local organizations $2,000 sponsorships to help their events inspire travel to the island.
Discover Coronado | Annual Report FY26 | 19
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 226
Discover Coronado | Annual Report FY26 | 20
The guidelines set in the ordinances that
established Discover Coronado (then Coronado
Tourism Improvement District) are strictly
adhered to. There were no changes in the
defined boundaries.
The assessment itself was unchanged,
continuing to levy resorts with more than
90 rooms in Coronado, California. The half
percent assessment for each of the two
districts of Discover Coronado is based
on gross hotel room revenue.
Discover Coronado does not receive revenue
from the federal resources, the State of
California, the City of Coronado, local businesses,
or residents. The only gains made are with
reserves that generate interest or dividends.
A special services agreement with the City of
Coronado requires quarterly activity reports and
financial statements from Discover Coronado.
Similar reports are included in the meeting
packets made available to the public.
Financial statements for Discover Coronado
are prepared by an independent, off-site
bookkeeper. Reserve investments are managed
and reported by a licensed financial planner that
was vetted by the Advisory Board. Considine
and Considine prepare and file federal and state
tax documents for the organization.
In FY26, Discover Coronado will audit its
financial systems.
Coronado’s position as an exclusive
luxury market should work in
its favor in 2026. Upper income
households—less sensitive to
higher prices—continue to spend,
supported by the wealth effects of
elevated stock and home values.
This segment has effectively put
a floor under demand since early
2025 and is expected to do so
through the next year. According to
MMGY Global, 90% of households
earning $150,000–$249,000 plan
to travel in 2026, along with 84%
of households earning more than
$250,000, compared with just
67% of households earning under
$100,000. Reflecting this dynamic,
CoStar/STR and Tourism Economics
forecast 2.1% revenue growth for
upper tier San Diego hotels in
2026, versus 1.4% growth for the
market overall.
Foundational
Details
Outlook
& Possible
Outcomes
Discover Coronado | Annual Report FY26 | 20
Nate Kelley,
Director of Research,
San Diego
Tourism Authority
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 227
Discover Coronado | Annual Report FY26 | 21
Resorts
Local businesses
City of Coronado
Property owners
Residents Guests
Labor Force
B2B Vendors
Coronado events
and organizations
Who Benefits from
Discover Coronado
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 228
Discover Coronado | Annual Report FY26 | 22
FY27
Budget ASSESSMENT - OTHER REVENUE
Projected Assessment $2,300,000
Earnings from Reserves $56,000
$2,356,000
GROUP SALES & GUEST ACQUISITION
San Diego Tourism Authority Partnership $475,000
Fams Trips - Inbound Expenses $80,000
Sales Trips - Client Events - Sales Gifts $75,000
Trade Shows - Outbound Expenses $80,000
Service Credits - Site Expenses $60,000
Group Sales Marketing - Cvent Tools $345,000
Destination Sales Director $120,000
Destination Sales Director Goal Commission $25,000
Leisure Marketing $175,000
Economic Impact Study - Symphony - Attrition $75,000
Website Service - Booking Tool $25,000
Photography - Video - Content $50,000
Group Organization Memberships $25,000
IMEX America + Booth Update $20,000
Keep It In Coronado Incentive $10,000
AI Optimization Strategy $25,000
$1,670,000
COMMUNITY PROGRAMS
Local Initiatives - Services $75,000
Community Sponsorships $20,000
Public Relations - 6 months $62,000
$157,000
OPERATIONS
Accounting - Bookkeeping - Tax Preparation $5,500
Legal - Consulting - License - Fees $5,500
Equipment - Software - Digital - Web $6,000
Supplies - Postage - Phone $3,500
Insurance - Business Coverage $7,000
Creative Design - Assets $12,500
Administrative Fee - City of Coronado $10,000
Rent - Relocation $41,000
Misc. Expense $8,000
Executive Director $136,500
Executive Director Goal Bonus $20,000
Project Manager $92,820
PT Content Coordinator $60,000
Payroll Tax $40,000
Benefits $66,300
401K Merit Matching $10,500
$525,120
$2,352,120
$3,880
REVENUE TOTAL
ACQUISITION TOTAL
COMMUNITY TOTAL
OPERATIONS TOTAL
TOTAL EXPENSES
NET PROFIT
Attachment 2
Item 8.d
March 17, 2026 City of Coronado Page 229
CITY COUNCIL STAFF REPORT
Consideration of Amendment No. 1 to Encroachment Permit E2507-004 and Associated Encroachment Maintenance and Removal Agreement for Private Improvements at 417 B Avenue
RECOMMENDATION
Deny Amendment No. 1 to Encroachment Permit E2507-004 and associated Encroachment Maintenance and Removal Agreement for private improvements at 417 B Avenue.
BACKGROUND
In 2023, the property owner of 417 B Avenue, Mr. Bob Allen, hired a contractor to construct improvements in the front yard of his residence. Mr. Allen’s contractor applied for and received approval of a Building Permit from the City’s Community Development Department to construct a horizontal plank fence with stone veneer pilasters. Notes were included on the plans indicating separate permits would be required from the Public Services and Engineering Department for any work within the public right-of-way. City records indicate several inspections were conducted during the course of construction of the fence; however, the permit for the fence expired without a final inspection being conducted.
In July 2025, Mr. Allen hired a different contractor to install artificial turf and a cemented flagstone walkway in the public parkway. This contractor applied for a Right-of-Way Permit for the work along with an Encroachment Permit which is required before building permanent, private improvements within the public right-of-way (in this case, the artificial turf and cemented flagstone walkway). City staff conducted an onsite meeting with the contractor to review the proposed improvements. While at the site, staff noticed raised planters constructed along the back of the sidewalk and within the public right-of-way; the raised planters appeared to be constructed from concrete masonry block with a stone veneer matching the plank fence and a 12-inch-wide slate tile top cap.
On September 11, 2025, an Encroachment Maintenance and Removal Agreement was approved by City staff which included the artificial turf and flagstone but did not include the raised planters that were observed during the site visit.
Staff confirmed the raised planters were unpermitted and contacted Mr. Allen to inform him of the apparent violation stating that he would have to remove the improvements from the public right-of-way.
After additional discussion, Mr. Allen was told he could apply for an Encroachment Permit for the nowexisting raised planters; if approved it would be documented in the form of an amendment to his Encroachment Maintenance and Removal Agreement for the artificial turf and flagstone.
Mr. Allen’s Encroachment Permit application was considered by the City Council on October 21, 2025.
Staff’s recommendation was to deny the application citing a lack of “need” for the encroachment and safety concerns over the existing planter’s proximity to the adjacent sidewalk. The City Council voted 4- 1 to deny the application. See Attachment 1 for the staff report and attachments from the Council meeting.
Subsequently, Mr. Allen submitted two revised designs for consideration that show modifications to the raised planters; the first “preferred” proposal keeps the planter boxes in their current location at the back of the sidewalk but modifies the wall cap so that it no longer overhangs the sidewalk; the second “alternative” proposal modifies the planter boxes to provide two feet of separation between the sidewalk Item 8.e
March 17, 2026 City of Coronado Page 230
and the front of the raised planters (Attachments 2 and 3 respectively).
ANALYSIS
The front property line for 417 B Avenue is located four feet behind the existing sidewalk. The improvements previously constructed at 417 B Avenue consisted of two raised planters, approximately one foot two inches in height with a combined width of thirty-four feet and a depth of approximately four feet six inches. The planters have stone veneer sides and a top cap consisting of twelve-inch slate tiles which overhang each side of the planter by approximately two inches. Additionally, lighting is installed on the bottom of the slate tile overhang.
Coronado Municipal Code Chapter 52.08 addresses encroachments into the public right-of-way. Section
52.08.010 states “The City Engineer shall receive and review applications for encroachments and no such application shall be approved if a determination is made that the encroachment structure will adversely affect the public health, safety or general welfare.” The City has no other formal policy or guidance on what types of encroachments should or should not be approved.
There continues to be no clear “need” to construct the raised planters in the public right-of-way. In staff’s discussions with Mr. Allen, he described a desire to provide a barrier between the proposed landscaping and the sidewalk to improve aesthetics of his property frontage and prevent passing pedestrians and animals from disturbing the landscaping.
City Council deliberations of encroachments have, since approximately 2017, considered a two-foot separation between the improvement and the sidewalk as providing a buffer from the pedestrian path of travel on the sidewalk. This has been of particular interest when deliberating picket fences that can catch handlebars of passing bicyclists or bags carried by pedestrians. Examples of approved encroachments that feature a two-foot buffer include the following by location and year:
• 715 Ninth Street (2017) – The Council approved the encroachment of a low-rise vinyl fence along the frontage of Ninth Street with the condition that it be relocated to provide a two-foot clearance from the sidewalk.
• 1039 Olive Avenue (2017) – The Council approved the encroachment of a low-rise picket fence within the public right-of-way adjacent to 1039 Olive Avenue at a two-foot six-inch clearance from the sidewalk.
• 817 Olive Avenue (2023) – The Council approved the encroachment of a low-rise vinyl picket fence along the frontage of Olive Avenue with the condition that it provide two feet of clearance from the sidewalk.
• 1100 Isabella Avenue (2025) - The Council approved the encroachment of a low-rise vinyl picket fence along the frontage of 1100 Isabella Avenue with the condition that it provide two feet of clearance from the sidewalk.
In the absence of policy or design guidelines that could be utilized to review Encroachment Permit applications, staff considered the following in its decision-making process:
1. Do the proposed improvements support any Council-approved policy or directive?
2. Is there a clear, reasonable “need” for the proposed improvements to be placed within the public right-of-way?
3. Do the proposed improvements present any safety hazard to the public or unreasonably limit the City’s/public’s use of the right-of-way?
Staff has reviewed both the “preferred” and “alternative” design proposals from the applicant. Although the “preferred” design proposal modifies the existing wall to remove its overhang of the sidewalk, it does not provide the two-foot separation from the sidewalk that the Council, in recent history, has considered as providing a buffer from the pedestrian path of travel. The “alternative” design does provide this buffer Item 8.e
March 17, 2026 City of Coronado Page 231
and is therefore not considered to present a public safety hazard or otherwise limit a pedestrian’s path of travel. However, staff does not believe either of the proposed designs support any Council-approved policy or directive nor is there a “need” for the improvements to be within the public right-of-way. As a result, staff recommends against the approval of the Encroachment Permit application.
FISCAL IMPACT
None.
ALTERNATIVE
1. The Council may elect to approve the revised raised planters as proposed by either the “preferred” or “alternative” designs and authorize the execution of an amendment to Encroachment Permit E2507-004 to include said improvements in a format approved by the City Attorney and including typical insurance requirements associated with private structures in the public right-of-way.
2. The Council may elect to approve of the raised planters if additional design alterations are made and authorize the execution of an amendment to Encroachment Permit E2507-004 to include said improvements in a format approved by the City Attorney and including typical insurance requirements associated with private structures in the public right-of-way.
CALIFORNIA ENVIRONMENTAL QUALITY ACT
This action is not subject to CEQA.
PUBLIC NOTICE
Property owners and residents within 300 feet of the constructed improvements were notified of this item.
ATTACHMENTS
1. Staff Report and Attachments from 10/21/25 Council Meeting
2. Applicant "Preferred” Design Proposal
3. Applicant “Alternative” Design Proposal
Submitted By: Public Services and Engineering / Jim Newton Item 8.e
March 17, 2026 City of Coronado Page 232
CITY COUNCIL STAFF REPORT
Consideration of Amendment No. 1 to Encroachment Permit E2507-004 and Associated Encroachment Maintenance and Removal Agreement for Private Improvements at 417 B Avenue
RECOMMENDATION
Deny Amendment No. 1 to Encroachment Permit E2507-004 and associated Encroachment Maintenance and Removal Agreement for private improvements at 417 B Avenue.
BACKGROUND
In 2023, the property owner of 417 B Avenue, Mr. Bob Allen, hired a contractor to construct improvements in the front yard of his residence. Mr. Allen’s contractor applied for and received approval of a Building Permit from the City’s Community Development Department to construct a horizontal plank fence with stone veneer pilasters. Notes were included on the plans indicating separate permits would be required from the Public Services and Engineering Department for any work within the public right-of-way. City records indicate several inspections were conducted during the course of construction of the fence; however, the permit for the fence expired without a final inspection being requested by the contractor.
See Attachment 1 for a portion of the approved Building Permit package.
In July 2025, Mr. Allen hired a different contractor to install artificial turf and a cemented flagstone walkway in the public parkway. This contractor applied for a right-of-way permit for the work along with an Encroachment Permit which is required before building permanent, private improvements within the public right-of-way (in this case, the artificial turf and cemented flagstone walkway). City staff conducted an onsite meeting with the contractor to review the proposed improvements. While at the site, staff noticed raised planters constructed along the back of the sidewalk and within the public right-of-way; the raised planters appeared to be constructed from concrete masonry block with a stone veneer matching the plank fence and a 12-inch-wide slate tile top cap (Attachment 2).
On September 11, an Encroachment Maintenance and Removal Agreement was approved by City staff which included the artificial turf but did not include the raised planters that were observed during the site visit (Attachment 3).
Staff confirmed the raised planters were unpermitted and contacted Mr. Allen to inform him of the apparent violation stating that he would have to remove the improvements from the public right-of-way.
After additional discussion, Mr. Allen was told he could apply for an encroachment permit for the nowexisting raised planters; if approved it would be documented in the form of an amendment to his Encroachment Maintenance and Removal Agreement for the artificial turf and flagstone; however, staff indicated they would likely recommend the City Council deny approval of the application for reasons discussed below.
ANALYSIS
The front property line for 417 B Avenue is located 4 feet behind the existing sidewalk. The improvements constructed at 417 B Avenue consist of two raised planters, 1 foot 2 inches in height with a combined width of 34 feet and a depth of approximately 4 feet 6 inches. The planters have stone veneer sides and a top cap consisting of 12-inch slate tiles which overhang each side of the planter by approximately 2 inches. Additionally, lighting is installed on the bottom of the slate tile overhang. Prior to the construction Attachment 1
Item 8.e
March 17, 2026 City of Coronado Page 233
of the raised planters, the area between the sidewalk and the fence consisted of an at grade planting area with a stone perimeter set in concrete which would have required an encroachment permit prior to installation but no such permit could be found (Attachment 4).
City Council’s consideration of Encroachment Permit applications for fences and other similar structural features has typically focused on two issues: 1) the need to construct the proposed improvements within the public right-of-way; and 2) the proximity of the improvement to the adjacent sidewalk and the potential hazard it may create for passing bicyclists or pedestrians. Staff has also raised the concern that in the event that the sidewalk needs to be replaced, the removal of the sidewalk may cause damage to the planter face, along with the inability to place a form to pour and finish the new sidewalk.
In this case there appears to be no clear “need” to construct the raised planters. In staff’s discussions with Mr. Allen, he described a desire to provide a barrier between the proposed landscaping and the sidewalk to improve aesthetics of his property frontage and prevent passing pedestrians and animals from disturbing the landscaping.
City Council deliberations of encroachments have typically considered a two-foot separation between the improvement and the sidewalk as providing an adequate buffer that results in a safe pedestrian path of travel. This has been of particular interest when deliberating picket fences that can catch handlebars of passing bicyclists or bags carried by pedestrians. Examples of approved encroachments that feature a two-foot buffer include the following locations and year:
• 715 Ninth Street (2017) – The Council approved the encroachment of a low-rise vinyl fence along the frontage of Ninth Street with the condition that it be relocated to provide a two-foot clearance from the sidewalk.
• 1039 Olive Avenue (2017) – The Council approved the encroachment of a low-rise picket fence within the public right-of-way adjacent to 1039 Olive Avenue at a two-foot six-inch clearance from the sidewalk.
• 817 Olive Avenue (2023) – The Council approved the encroachment of a low-rise vinyl picket fence along the frontage of Olive Avenue with the condition that it provide two feet of clearance from the sidewalk.
• 1100 Isabella Avenue (2025) - The Council approved the encroachment of a low-rise vinyl picket fence along the frontage of 1100 Isabella Avenue with the condition that it provide two feet of clearance from the sidewalk.
There is currently at least one example of a raised planter bed built within the public right-of-way in close proximity to the subject property; the property located at 400 B Avenue consists of a low, raised planter formed by a concrete masonry block wall covered in stucco. The planter is built directly up against the back of sidewalk but does not have any features that extend into the sidewalk path of travel. Historical photos confirm the planter at 400 B Avenue has been in place since at least 2007 and staff was unable to locate any recorded encroachment permit for this structure.
Unlike the planter at 400 B Avenue, the planters built at 417 B Avenue are topped with a 12-inch slate tile which extends approximately 2-inches into the path of travel along the sidewalk. Staff considers this protrusion, along with its relatively sharp edge, to be a potential hazard to bicyclists and pedestrians on the sidewalk. Considering the potential hazard, the lack of the desired 2-foot buffer, and the lack of a “need” to construct the raised planters, staff recommends that the City Council deny Amendment No. 1 to Encroachment Permit E2507-004 and require that the planters be removed from the public right-ofway.
FISCAL IMPACT
There is no direct fiscal impact associated with this item.
Attachment 1
Item 8.e
March 17, 2026 City of Coronado Page 234
ALTERNATIVE
1. The Council may elect to approve of the raised planters as constructed and authorize the execution of an amendment to Encroachment Permit E2507-004 to include said improvements in a format approved by the City Attorney and including indemnity and defense obligations in addition to insurance requirements associated with private structures in the public right-of-way.
2. The Council may elect to approve of the raised planters if certain design alterations are made (such as providing two feet of clearance from the sidewalk) and authorize the execution of an amendment to Encroachment Permit E2507-004 to include said improvements in a format approved by the City Attorney and including indemnity and defense obligations in addition to insurance requirements associated with private structures in the public right-of-way.
CALIFORNIA ENVIRONMENTAL QUALITY ACT
Not applicable.
PUBLIC NOTICE
Property owners and residents within 300 feet of the constructed improvements were notified of this item.
ATTACHMENTS
1. Portion of approved building permit plan
2. Current raised planter
3. Encroachment Maintenance and Removal Agreement E2507-004
4. Previous planter bed
Submitted By: Public Services and Engineering / Dave Johnson and Katie Odiorne Attachment 1
Item 8.e
March 17, 2026 City of Coronado Page 235
Attachment 1
Item 4.g Item 8.e
March 17, 2026 City of Coronado Page 236
Attachment 1
Item 4.g Item 8.e
March 17, 2026 City of Coronado Page 237
i.cY
PLEASE COMPLETE THIS INFORMATION.
RECORDING REQUESTED BY:
City Clerk, City ofCoronado
AND WHEN RECORDED MAIL TO:
CityofCoronado
1825 Strand Way
Coronado,CA92118
DOC# 2025-0264135
iniimiiiiiiiiiNiiiinininiiiiiniN
Sep 23, 2025 10:35 AM
OFFICIAL RECORDS
JORDAN Z. MARKS,
SAN DIEGO COUNTS RECORDER
FEES: $35.00 (SB2 Atkins; $0.00)
PAGES: 8
THIS SPACE FOR RECORDER 'S USE ONLY
ENCROACHMENT PERMIT NO. E2507-004. APN: 536-321-04
(Please fill in document title(s) on this line)
ENCROACHMENT MAINTENANCE AGREEMENT
An encroachment pennit is hereby granted to the Permittee designated in Paragraph One,Attachment A, as the owner of the Benefited Property described in Paragraph Two, AttachmentA, to encroach as detailed in the diagrams included as Exhibit A. Attachment A and Exhibit Aare hereby incorporated herein by this reference as though fully set forth at length. In consideration of the issuance of this encroachment permit, Permittee hereby covenants andagrees, for the benefit of the City ofCoronado ("City"), as follows:
1. This covenant shall run with the land and be binding upon and mure to the benefit of the future owners, encumbrancers, successors, heirs, personal representatives, transferees, and assigns of the respective parties.
2. Pennittee shall use and occupy the City Property only in the manner and for the purposes described in paragraph four. Attachment A.
3. By accepting the benefits herein. Permittee acknowledges title to the City Property to be in the City and waives all right to contest that title.
4. The term of this encroachment permit is indefinite and may be revoked by the City or abandoned by Pemiittee at any time. The City shall mail written notice of revocation to Permittee, addressed to the Benefited Property which shall set forth the date upon whichthe benefits of the encroachment permit are to cease.
5. City is entitled to remove all or a portion of the improvements constructed by Pennittee in order to repair, replace, or install public improvements. City shall have no obligation to pay for or restore Pennittee's improvements.
6. Pennittee agrees to indemnify, defend (with counsel acceptable to City) and hold the City and its officials, employees, agents, representatives, and volunteers harmless from and
Attachment
1 Item 8.e
March 17, 2026 City of Coronado Page 238
against all claims, demands, costs (including attorney fees and expert costs), losses, damages, injuries, litigation, and liability arising out of or related to this encroachment permit or any use, constmction, encroachment, maintenance, act, or omission by the Pennittee or Pennittee's agents, employees, representatives, or contractors on City Property.
7. Upon abandonment or revocation, Permittee shall, unless otherwise directed by the City and at no cost to the City, return City property to its pre-permit condition within the time specified in the notice of revocation or prior to the date of abandonment.
8. If Pennittee fails to restore the City property, the City shall have the right to enter upon the City Property and, after sending notice to the Permittee delivered at the Benefited Property, restore the City Property to its pre-pennit condition, which mcludes, but is not limited to, the destmction and removal of any improvements. Permittee agrees to reimburse the City, within thirty (30) days of a request by City, for all costs (including attorney fees and staff time) incurred by the City to send notice and restore the CityProperty to its pre-permit condition.
9. If either party is required to incur costs to enforce the provisions of this covenant, the prevailing party shall be entitled to full reimbursement for all costs, includmg reasonable attorney's fees.
10. Permittee agrees that Permittee's duties and obligations under this covenant are a lien upon the Benefited Property. Upon 30-day notice, and an opportunity to respond, the City may add to the tax bill of the Benefited Property any past-due financial obligation owingto the City by way of this covenant.
11. Pennittee waives the right to assert any claim or action against the City arising out of or resulting from the revocation of this permit or the removal of any improvement or any other action or omission by the City, its officers, agents, employees, representatives, orvolunteers related to or arising out of this pennit, except for willful misconduct.
12. Pennittee recognizes and understands that this pennit may create a possessory interest subject to property taxation and that the Pemiittee may be subject to the payment ofproperty taxes levied on such interest.
13. As a condition precedent to Permittee's right to go upon the City Property, this pennit must first be signed by the Pennittee, notarized, executed by the City and recorded with the County Recorder of the County of San Diego. The recording fee shall be paid by Permittee.
14. Permittee will maintain the encroachment at Permittee's sole expense for as long as the encroachment remains in existence.
October 21, 2025 City of Coronado Page 84
Attachment 1
Item 8.e
March 17, 2026 City of Coronado Page 239
15. Permittee shall keep the sidewalks around this improvement safe, clear and unobstmcted for pedestrian trafBc.
16. If any portion of the improvement is detennined to be a pedestrian hazard, public nuisance or a public safety hazard in any way, as determined by the City Engineer inhis/her sole discretion, then all or any portion of the improvement shall be removed, at the City's option, by Permittee at the Permittee's sole expense or by the City at thePermittee's expense.
17. Any design changes to the encroachment area require the prior written approval of the City Engineer.
18. Should the Permittee or the Pemiittee's contractor or agent add improvements to the public right-of-way where there is an existing street tree or a new or replacement tree isplanted, approval of the work by the City's Arborist is required. The Pennittee andcontractor or agent performing the work shall assume any responsibility for repair and/or replacement of those private improvements, should those improvements be damaged by root intmsion, or for any other cause, by a City street tree.
19. The encroachment consisting of artificial tirf shall be spaced 24" from the tmnks of any City tree and the installation of irrigation bubblers is also required at least 15" from the base of tree within said spacing to provide proper oxygen and moisture for surface roots for the health of the tree. Approval of the work by the City's Arborist is required.
20. Permittee shall comply with all applicable laws related to the construction, maintenance, or removal of the encroachment or any action or omission in connection with any rightsor obligations under this permit. If the Benefitted Property or the encroachment has beendesignated as a historical resource under the City's Historic Resource Code, any construction or removal of the encroachment shall comply with the Secretary of theInterior's Standards for Treatment of Historical Properties and other applicable rules, regulations, and law, including the Historic Alteration Permit, if any, referenced in Paragraph Three of Attachment A.
Attachment 1
Item 8.e
March 17, 2026 City of Coronado Page 240
APPROVED AS TO FORM AND CONTENT
By: ^/hJim Newton
CitV o^Coronado
Citj^Engineer
-NOTARtZATION REQUIREDDate: I/"/;z< TT
AGREED AND ACCEPTED:By:_ ^. (^_
R'obert C. Alien
Owner
Permittee
Date: °1/^/^^
(Signature of owner, owners or
authorized representative)
-NOTARIZATION REQUIREDPage 4 of 8
Attachment
1 Item 8.e
March 17, 2026 City of Coronado Page 241
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the tmthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF <$<^v-> '-T>^<r^o
On (—^€5^- ^-\ '2-^'z'^ before me, -V^< ^-< i-< i^\ *-, c=>o-t--o _, Notary Public, personally appeared'^^. c=Y.?c^ ^- CT • A-^ \-c •^ 1^-> ?»•
PAULINA SOTO^
COM M. #24808-3
NOTARY PUBLIC-CALIFOKNIA
SAN DIEGO COUNTY
My Commission BXP!res FEBRUARY 26. 2028
Place Notary Seal Above
who proved to me on the basis of satisfactory evidence to be the person^ whose name^-is/ai^. subscribed to thewithin instmment and acknowledged to me that he/slfe/thfy executed the same in his/ket/th^r authorized capacity(w^),and that by his/tosE/thrfr signature^. on the instrument, the person(^x>r the entity upon behalf of which the person^)acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of
the State of California that the foregoing paragraph is tmeand correct. ^WITNESS my handand^fficial&
Hglaature of Notary Public
*,<
Attachment
1 Item 8.e
March 17, 2026 City of Coronado Page 242
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the tmthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ^tu^
On ^^btbcT II, ^01^, before me,, f^dse^ /J^r^ ti"l
personally appeared
KELSEAMARIEHOLIAH^
Notary Public - Californfi San Oiego County Commission » 2427652 My Comm. Expires Nov 21,2026I
r^^ , Notary Public,
^-J/^ /1/e^^^ .9
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to thewithin instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of
the State of California that the foregoing paragraph is tmeand correct.
WITN^S^ my hai]4 and of^cw[ seal.
Place Notary Seal Above Sigp^dre of Notary ^iblic^
Attachment
1 Item 8.e
March 17, 2026 City of Coronado Page 243
ATTACHMENT A TO ENCROACHMENT MAINTENANCE
AGREEMENT REGARDING
ENCROACHMENT PERMIT NO. E2507-004
PARAGRAPH ONE:
Permittee
Robert C. Alien
417B Avenue
Coronado,CA92118PARAGRAPH TWO:
Benefited Property
417B Avenue
Coronado,CA.92118
A.P.N.: 536-321-04
PARAGRAPH THREE;
This encroachment permit authorizes a private improvement consistmg of artificial turf over a compacted base material in the public right-of-way. Said improvements will extend Thirty Four feet (34') along Six and a Half feet (6.5') wide parkway adjacent to the property along B Avenue. The total turf encroachment is estimated to be Two Hundred Five square feet (205 sq. ft.) of privately-enhanced and maintained public land. In additional to the artificial turf, this agreement will also cover the approximately 48 square feet of Blue stone walkway in the parkway which is set in concrete.
PARAGRAPH FOUR:
Purpose
The purpose of this permit is to allow the Permittee to construct, at his/her expense, the private improvements as shown in Exhibit A of the encroachment permit, within the public right-of-way adjacent to 417 B Avenue, Coronado CA 92118.
Attachment
1 Item 8.e
March 17, 2026 City of Coronado Page 244
EXHIBIT A TO COVENANT REGARDING
ENCROACHMENT PERMIT NO. E2507-004
EXHIBIT A TO COVENANT REGARDING
ENCROACHMENT PERMIT NO. E2507-004
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DRAWN BY: MAS
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Attachment
1 Item 8.e
March 17, 2026 City of Coronado Page 245
Attachment 1
Item 8.e
March 17, 2026 City of Coronado Page 246
Attachment 1
Item 8.e
March 17, 2026 City of Coronado Page 247
Attachment 1
Item 8.e
March 17, 2026 City of Coronado Page 248
Attachment 1
Item 8.e
March 17, 2026 City of Coronado Page 249
B AVENUE
WM
PL PL
PL
PL
SIDEWALK
PARKWAY WALK WAY 5'-0" 7'-0"
38'-0" 4'-0"
12'-7" 21'-6"
1 2
RIGHT OF
WAY LINE
CITY TREE
ARTIFICIAL
TURF
CURB
WALL PLANTER FRONT ELEVATION 1 1/2" = 1'-0" 1'-2" 3'-7
1 2
"
SYMB2L B2TANI&AL &2MM2N NAME
SHRUBS
Cordyline fruticosa `Red Sister`
Red Sister Ti Plant
Kalanchoe luciae
Paddle Plant
Sansevieria trifasciata 'Laurentii'
Laurentii Snake Plant
Tradescantia x `Nanouk`
Nanouk Spiderwort
PLANT SCHEDULE
WALL PLANTER SECTION
1/2" = 1'-0" 1'-0"
1'-3"
2 ENCROACHMENT PERMIT NO.
417 B AVE.
CORONADO, CA
DRAWN BY:
DATE:
APN# 536-321-04-00 LANDSCAPE COMPANY
TORREY PINES
LHJ
2-18-26
Attachment 2
Item 8.e
March 17, 2026 City of Coronado Page 250
5'-0" 7'-0"
38'-0" 4'-0"
12'-7" 21'-6"
B AVENUE
PL PL
PL
PL
SIDEWALK
PARKWAY WALK WAY
1 2
RIGHT OF
WAY LINE
CITY TREE
ARTIFICIAL
TURF
CURB 2'
WALL PLANTER FRONT ELEVATION 1 1/2" = 1'-0" 1'-2" 3'-7
1 2
"
SY0B2L B2TANI&AL &2002N NA0E
SHRUBS
Cordyline fruticosa `Red Sister`
Red Sister Ti Plant
Sansevieria trifasciata 'Laurentii'
Laurentii Snake Plant
Tradescantia x `Nanouk`
Nanouk Spiderwort
SHRUB AREAS
Asparagus densiflorus `Myers`
Myers Asparagus Fern
PLANT SCHEDULE
WALL PLANTER SECTION
1/2" = 1'-0" 1'-0"
1'-3"
2 ENCROACHMENT PERMIT NO.
417 B AVE.
CORONADO, CA
DRAWN BY:
DATE:
APN# 536-321-04-00 LANDSCAPE COMPANY
TORREY PINES
LHJ
2-18-26
Attachment 3
Item 8.e
March 17, 2026 City of Coronado Page 251
CITY COUNCIL STAFF REPORT
Authorization of City Council ad hoc Border Water Quality Advocacy Subcommittee
RECOMMENDATION
Authorize the City Council ad hoc Border Water Quality Advocacy Subcommittee and confirm Council membership, not to exceed two members.
BACKGROUND
In April 2023, following a history of Councilmember advocacy regarding ocean water quality concerns, the City Council authorized the formation of an ad hoc City Council subcommittee on Cross-Border Water Pollution. Then-Mayor Bailey and then-Councilmember Duncan were confirmed as members. The subcommittee worked with City staff and the City’s federal advocate to implement a strategy to urge essential improvements to the International Boundary & Water Commission’s (IBWC) International Wastewater Treatment Plant, and Mexico’s San Antonio de los Buenos Wastewater Treatment Plant (SAB Plant), and other wastewater infrastructure polluting the Tijuana River Valley and coastal areas.
In March 2024, the City Council authorized the ad hoc subcommittee on Cross-Border Water Quality to maintain the concerted focus on correcting wastewater infrastructure failings and stop the discharge of wastewater from the Tijuana River Valley and Mexico. Members Bailey and Duncan were appointed.
In December 2024, as part of the City Council transition following the November 2024 General Election, Mayor Duncan and Councilmember Fleming were appointed to the remainder of the ad hoc Committee’s term, to April 1, 2025.
On March 18, 2025 the City Council authorized the ad hoc Ocean Water Quality Subcommittee and confirmed its membership of Mayor Duncan and Councilmember Fleming, effective April 1, 2025 for one year, to April 1, 2026.
ANALYSIS
In 2025, the charge to eliminate cross-border water pollution gained significant momentum, driven by Coronado’s advocacy and prioritization from the federal government: Congress, the White House and federal agencies such as the Environmental Protection Agency (EPA) and the IBWC. Progress has taken the form of accelerated projects on the ground, such as the 100-day project to deliver an increase of 10 million gallons per day of treatment capacity while the permanent improvements to the South Bay International Treatment Plant are underway, and an ozone nanobubble pilot program deemed a successful proof of concept; new binational agreements in the form of the July 2025 Memorandum of Understanding between the United States and Mexico and the December 2025 Minute Order 333 between the United States and Mexico—both with deadlines and accountability measures; ongoing discussions of a renewed framework for the United States-Mexico-Canada Agreement (USMCA) with durable performance and accountability measures for the quality of water crossing the U.S. border; ongoing federal funding to support the rehabilitation and operations/maintenance of the South Bay International Treatment Plant; and, increasing engagement and information sharing with Coronado and area cities.
Item 8.f
March 17, 2026 City of Coronado Page 252
As reported in the quarterly updates to the community and discussed at every City Council meeting, efforts to permanently correct water pollution from Mexico continues as a top priority for the City of Coronado. For this reason, it is recommended that the City Council form an ad hoc subcommittee to continue a focus on this crucial issue.
The subcommittee’s work would encompass, but is not limited to:
• Principal-level advocacy with Coronado’s federal delegation and other Congressional offices nationwide to urge expedited infrastructure construction, appropriation of federal funding, and accountability for Mexico’s share of infrastructure construction and water quality outcomes; • Advocacy visits to Washington, DC to meet with officials from the White House, federal agencies, and legislative and committee offices;
• Direct coordination of advocacy by the City’s federal advocate, Barnes and Thornburg, LLP; • Principal-level engagement the IBWC, including with the IBWC Commissioner; • Coordinated engagement with local partners such as the City of Imperial Beach, the Port of San Diego and south bay cities;
• Participation on U.S. Congressional working groups to monitor, coordinate and support administrative and expenditures to complete wastewater infrastructure projects; • Partnership cultivation across the San Diego region, with a variety of stakeholders; • Monitoring and accountability of local water quality testing methodologies; and • Presentation of quarterly updates to the City Council.
Staff recommends that the Council discuss the formation of an ad hoc subcommittee and provide direction on subcommittee name and scope, and membership.
In addition to this subcommittee, other Councilmembers are engaged in water quality initiatives.
Councilmember Downey was reappointed to serve on the National League of Cities (NLC) Energy, Environment and National Resources Committee. Councilmember Steward was appointed to the CalCities Environmental Quality Committee.
FISCAL IMPACT
The fiscal impact associated with the subcommittee encompasses travel expenses, which are covered under existing Fiscal Year (FY) 2025-26 budget. Appropriate travel funds will be proposed in the FY 2026- 27 budget.
ALTERNATIVE
The City Council could provide alternate direction.
CALIFORNIA ENVIRONMENTAL QUALITY ACT
This action is not subject to CEQA.
PUBLIC NOTICE
No public notice is required for this item.
ATTACHMENTS
None.
Submitted By: City Manager's Office / Tina Friend
Item 8.f
March 17, 2026 City of Coronado Page 253
CITY COUNCIL STAFF REPORT
Resolution to Extend a Local Emergency Declaration in the City of Coronado Due to Impacts from Cross-Border Water Pollution
RECOMMENDATION
Consider the Resolution to Extend the Local Emergency Declaration due to cross-border water pollution.
BACKGROUND
The City of Tijuana’s regional wastewater infrastructure is decades old, has inadequate capacity to treat and convey wastewater and suffers from repeated breaks and system failures. These failures lead to spillage and wastewater discharge into the Tijuana River, its tributaries and outfall into the Pacific Ocean, polluting the ocean waters off Imperial Beach, Coronado and beyond. The impacts of this pollution to the region are profound, and growing as Tijuana’s population expands.
The South Bay area, including the City of Coronado, has seen increasing levels of water pollution and beach closures from cross-border water pollution. These conditions threaten the health and safety of residents and visitors, our local ecosystems and the economic vitality of the region.
At the City Council’s March 4, 2025 meeting, City Council adopted a Resolution Declaring a Local Emergency due to pervasive impacts from cross-border water pollution. The declaration was extended on June 3, 2025, July 15, 2025, September 2, 2025, October 21, 2025, December 16, 2025, and February 3, 2026.
ANALYSIS
Under State law, a declaration of local emergency must be considered every sixty days and the governing body take action to either extend or terminate the local emergency. The City Council is requested to discuss and take action. A Resolution to Extend the Emergency Declaration has been prepared and is attached.
FISCAL IMPACT
There is no fiscal impact.
ALTERNATIVE
The City Council may choose to terminate the emergency declaration or provide other direction.
CALIFORNIA ENVIRONMENTAL QUALITY ACT
Not applicable.
PUBLIC NOTICE
Not applicable.
ATTACHMENTS
1. Resolution 2026-08
Submitted By: City Manager's Office / Tina Friend
Item 8.g
March 17, 2026 City of Coronado Page 254
Attachment 1
RESOLUTION NO. 2026-08
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CORONADO, CALIFORNIA, EXTENDING A
DECLARATION OF A LOCAL EMERGENCY
RELATING TO IMPACTS FROM CROSS BORDER
WATER POLLUTION
WHEREAS, California Government Code Section 8630 and Coronado Municipal Code Chapter 2.50 empowers the City Council to proclaim the existence or threatened existence of a local emergency; and
WHEREAS, The Coronado City Council adopted a Resolution to Declare a Local Emergency on March 4, 2025, and subsequently adopted an additional 60-day extension due to the ongoing impacts on April 15, 2025, June 3, 2025, July 15, 2025, September 2, 2025, October 21, 2025, December 16, 2025, and February 3, 2026; and
WHEREAS, The Emergency Declaration is set to expire on April 4, 2026, unless further extended by the City Council; and
WHEREAS, cross border flows of untreated wastewater from the Tijuana River and the inoperative San Antonio de los Buenos Wastewater Treatment Plant constitute an environmental catastrophe and through this pollution of ocean waters, adversely impacts the lives of residents and visitors in the City of Coronado; and
WHEREAS, impaired water quality leads to conditions unhealthy for the safety of persons, property and the environment; and
WHEREAS, pollution from cross-border flows is impacting the region’s community health, economy and ecosystems, and the ongoing closures of South Bay beaches, including Coronado beaches, limits coastal access; and
WHEREAS, the flow of contaminants and untreated wastewater continues to escalate due to inadequate wastewater infrastructure in the City of Tijuana and lack of sufficient operation and maintenance of existing infrastructure; and
WHEREAS, the cities of Imperial Beach, Chula Vista, San Diego, the County of San Diego and the San Diego Port District have declared a state of local emergency, and the County of San Diego has issued a public health emergency for the Tijuana River Valley; and WHEREAS, the environmental degradation from cross-border water pollution constitutes Item 8.g
March 17, 2026 City of Coronado Page 255
Attachment 1
an economic and public health threat that is beyond the control of local resources, services, personnel equipment and facilities, and warrants this declaration of a local emergency.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Coronado as follows:
1. That the above recitations are true.
2. A local emergency exists in the City of Coronado.
3. The City Manager, Mayor and Councilmembers are authorized to work with local, State, Federal and Mexican authorities to improve conditions in the Tijuana River Valley and greater wastewater infrastructure systems to improve water quality conditions.
4. The proclamation of existence of a local emergency shall be deemed to continue to exist until its termination is proclaimed by the City Council of the City of Coronado, and it shall be terminated at the earliest possible date that conditions warrant. The Council shall review this emergency at least once every sixty days.
PASSED, ADOPTED, AND APPROVED by the City Council of the City of Coronado, California, at a regular meeting thereof this seventeenth day of March 2026 by the following vote to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
APPROVED:
____________________________________
JOHN D. DUNCAN, Mayor of the
City of Coronado, California
ATTEST:
__________________________________
KELSEA HOLIAN, City Clerk of the
City of Coronado, California
Item 8.g
March 17, 2026 City of Coronado Page 256
March 4, 2026
Dear Members of the City Council, City Manager and City Attorney:
I write under Council Policy 2 to request that at a future City Council meeting, the Council consider establishing a City Ordinance prohibiting the sale of the substance known as "Kratom" or "7-OH" and other similar “novel drugs”, often synthetic substances, that are sold over the counter.
The substance is highly addictive narcotic-like substance and dangerous. It has been reported that it is or has been sold in Coronado stores such as liquor stores.
The City of San Diego and the City of Oceanside have banned it and the sale of it. The State of California has stated it is illegal under a general law but does not have a specific law regarding this substance. The FDA has asked the Federal government to ban it but that law has yet to advance.
Thank you for your consideration.
Sincerely,
John Duncan
Mayor
Item 8.h
March 17, 2026 City of Coronado Page 257