The City Council approved the final design and adopted Design Review Permit DRB23- 008 and Land Conservation Permit LC23-003 on October 2, 2023. Since that time, City staff has continued coordinating resource agency permitting review and pursuing County, State, and Federal grant funding to offset the current Project financing gap as further described below.
DISCUSSION/ANALYSIS:
Status of Resource Agency Permitting
In June 2022, staff submitted permit applications to the California Coastal Commission (CCC), California Department of Fish and Wildlife (CDFW), US Army Corps of Engineers (USACE), and the Regional Water Quality Control Board (Water Board) for the Project.
USACE and the Water Board replied that no permits are needed through either agency, and that no further action needs to be taken. CDFW has reviewed the application and prepared a Streambed Alteration Agreement. Terms of the Streambed Alteration Agreement are acceptable to the City and the City Manager will execute the agreement upon completion of CCC’s review and certification of the required Habitat Mitigation and Monitoring Plan (HMMP).
CCC conditionally approved the City’s consolidated Coastal Development Permit (CDP) application at its December 2022 meeting and issued a Notice of Intent to Issue Permit.
With the Notice of Intent to Issue Permit, CCC provided special conditions to be met prior to the issuance of a permit for construction. Staff provided all documents requested in the special conditions to the CCC in a timely manner, which included final site and grading plans, HMMP, Landscape and Irrigation Plans, construction best management practices (BMPs) plan, and cultural resources treatment and monitoring plan.
To date, the CCC has only completed reviews of the cultural resources treatment and monitoring plan, and the HMMP. A notice of acceptance for the cultural resources treatment and monitoring plan has been provided by CCC, meaning that condition has been satisfied. City staff, in coordination with the City’s environmental consulting firm HELIX Environmental, is working on the comments provided on the HMMP. The remaining documents are still under review by the CCC, which has taken longer than anticipated. Staff has continued to inquire about the status of the CCC’s review of the remaining documents at Project specific and regular monthly City/CCC staff meetings, but have yet to receive a commitment by which comments will be provided.
Status of Easements
Most of the trail (approximately 75%) is within the City’s public right-of-way or City-owned parcels. The remaining 25% (0.1 acres) is property owned by the State of California. For work on the State-owned property within the San Dieguito Lagoon, the City has executed a right-of-entry permit with CDFW to complete the construction. Upon completion of construction, the City will acquire a permanent easement from CDFW for any portions that are constructed on State-owned land.
The Project includes environmental mitigation to offset project impacts to sensitive habitat along the trail. This will occur on two mitigation parcels owned by the San Dieguito River 2 June 3, 2024 Item 14
City Council Agenda Report
Riverpath Phase 3 Update
June 3, 2024
Valley Conservancy: APN 299-072-20 and APN 299-072-21. A conservation easement will need to be executed prior to mitigation work. The San Dieguito River Valley Conservancy is agreeable to executing the conservation easement. However, the purpose of the easement refers to work described in the approved HMMP and Landscape and Irrigation Plans, which are both under review by the CCC. Staff will bring back a conservation easement and public trail easement to the City Council at a future date.
Status of NEPA
On March 18, 2024, the City Council awarded a contract to Helix Environmental for preparation of required National Environmental Policy Act (NEPA) documentation. This environmental analysis is a requirement of the $680,000 in federal funding received for the Project, which is described in more detail in the next section of this report.
City staff is working with Helix Environmental to expedite the NEPA analysis and anticipates returning to City Council on July 8, 2024, for final approval. Following City Council approval, the Project will be submitted to the U.S. Department of Housing and Urban Development (HUD) for review as the grant administrator, and for HUD to release the funds. The City cannot award the construction contract prior to receiving approval from HUD or the Project would become ineligible to receive this funding.
Project Costs & Funding
The City’s design engineer, Michael Baker International, prepared an engineer’s estimate of probable cost in April 2023. The Engineer’s Estimate for the construction phase totaled $2.85 million (M). This estimated project cost was used to identify the funding gap and support grant application requests.
To date, a total of $70,000 in grant funds for pre-construction Project activities (planning, design, Mitigation Negative Declaration (MND) preparation, and permitting) have been awarded to the City by the County of San Diego. Another $1.4M in Project funding has been secured for construction, which includes $725,000 from the San Dieguito River Valley Conservancy and $680,000 in the Fiscal Year (FY) 2023 Federal Community Program Funding Grant that was sponsored by Representative Mike Levin.
This leaves a funding gap of approximately $1.45M. Table 1 summarizes the grants previously applied for and status for each.
Table 1: Summary of Prior Grant Applications
Name of Grant Lead Agency Date of
Application
Amount
Requested
Status of Request
Neighborhood
Reinvestment
Program
San Diego
County Board
of Supervisors
January
2021
$250,000 Not Awarded
Clean California
Local Grant
Program
Caltrans January
2022
$797,130 Not Awarded
3 June 3, 2024 Item 14
City Council Agenda Report
Riverpath Phase 3 Update
June 3, 2024
Community
Enhancement
Program
San Diego
County Board
of Supervisors
January
2022
$51,200 Partially Approved -
$10,000 received in April
2022 and used for
Environmental/ Permitting
Neighborhood
Reinvestment
Program
San Diego
County Board
of Supervisors
January
2022
$60,900 Partially Approved -
$25,000 received in April
2022 and used for
Environmental/ Permitting
Recreational
Trails Program
State of
California –
Department of
Parks and
Recreation
April 2022 $1,162,797 Not Awarded
State budget
funding request
through Senator
Blakespear
State of
California
April 2023 $1,300,000 Not Awarded
Recreational
Trails Program
State of
California –
Department of
Parks and
Recreation
June 2023 $1,300,000 Not Awarded
Community
Enhancement
Program
San Diego
County Board
of Supervisors
March 2024 $10,000 Approved.
Will be used for Helix
Environmental work
Neighborhood
Reinvestment
Program
San Diego
County Board
of Supervisors
March 2024 $25,000 Approved.
Will be used for Helix
Environmental work
Coastal
Conservancy
Grants
State of
California –
Coastal
Conservancy
March 2024 $1,300,000 Not Awarded
Table 2 summarizes grant applications that are in process and have the potential to provide funding for the construction of the Project.
Table 2: Summary of Pending Grant Applications
Name of
Grant
Lead Agency Date of
Application
Amount
Requested
Status of Request
Wildlife
Conservation
Board Grant
State of California
– Wildlife
Conservation
Board
March 2024 $1,300,000 Application under
consideration.
Funding to be spent in 2-
5 years
Land and
Water
Conservation
Fund
State of California
– Department of
Parks and
Recreation
Wildlife
Conservation
Board
submitting
project on
City’s behalf
$1,450,000 Application Deadline is
September 2024 –
Wildlife Conservation
Board is recommending
project
4 June 3, 2024 Item 14
City Council Agenda Report
Riverpath Phase 3 Update
June 3, 2024
State Budget
Request
Assemblymember
Tasha Boerner’s
Office
January
2024
$1,450,000 Under consideration
Federal
Budget
Request
Representative
Levin’s Office is
Supporting the
Funding Request.
May 2024 $1,450,000 If approved, would be
available Summer/Fall
2025
City staff have discussed the grant application with the Wildlife Conservation Board and learned that the project qualifies and is being considered. However, the program is competitive, has limited funding, and was put on pause until after July 1st when the State can determine if funding will be included in the next State Budget. The Wildlife Conservation Board can apply for other State funding on behalf of local agencies and will be recommending the project to the Land and Water Conservation Fund for funding consideration before the deadline of September 2024.
Congressman Mike Levin has submitted a request for $1.45M in funding that would be included in the FY 2024 Federal Budget to be considered by Congress between December 2024 and March 2025. If approved, the funding would not be available until Summer/Fall 2025 after the next Federal Budget is adopted.
Staff will continue to work with the City’s legislative affairs consultant, Townsend Public Affairs, to identify all other possible sources of funding to help fund the Project.
Construction Timing and Next Steps
Following CCC’s approval of the special conditions, City staff anticipates it will take 2-3 months to incorporate CCC requirements into the Project’s plans and specifications, finalize conservation easements for the mitigation parcels, grant a public trail easement, and finalize the construction bid package.
Bidding and award of the project will take approximately two (2) months. Construction is anticipated to take approximately four (4) months to complete. However, due to the permitting requirements in this environmentally sensitive area, there are multiple overlapping time restrictions that could extend overall Project schedule and create periods of non-activity, depending on when construction starts.
The Project involves minor grading, vegetation removal, and debris removal along the alignment within upland and wetland habitat areas. Per City requirement, grading must occur outside of the songbird and raptor breeding season (allowed between September 1 – December 31) and before the start of the Local Coastal Plan rainy season (allowed between April 1 - November 14). This leaves a window between September 1 – November 14 for clearing and grading work on the mitigation parcel and other locations that require grading such as the decomposed granite trail. A biologist would be present on-site during any grading, vegetation removal, and work within environmentally sensitive areas to monitor for environmental compliance.
5 June 3, 2024 Item 14
City Council Agenda Report
Riverpath Phase 3 Update
June 3, 2024
Installation of irrigation and planting on the offsite mitigation parcels per the HMMP will occur immediately after grading, taking approximately 30-60 days. Ideally this would occur between October and January, the start of the wet season to take advantage of natural rainfall and cooler seasonal temperature. Plant establishment will be monitored for a five-year maintenance period beyond that.
Per the CDFW Streambed Alteration Agreement, regulated project activities including grading, installation of temporary above-ground irrigation, planting, and construction of the pre-made concrete-and-pin foundations should be scheduled to avoid the nesting season for migratory and otherwise sensitive birds (allowed between September 1 to January 31). If this is not possible and work is scheduled to occur during the nesting season, a qualified biologist would conduct pre-construction survey(s) to determine the presence or absence of these species within 500 feet of the proposed construction activities. If nesting birds are found to be present, additional measures would be imposed to mitigate noise levels exceeding 60 hourly A-weighted decibel average.
Remaining construction activities, such as installation of the decking, cable and post lagoon protective fence, ADA-complaint pedestrian ramp, roadway striping and improvements, will not be constrained by permitting requirements and can occur at any time agreeable to the City.
FISCAL IMPACT:
There is no fiscal action to be taken by the City Council related to this agenda item.
Additional funding considerations for this Project are included in the FY 2024-25 Budget Update included as a separate item on the City Council agenda for June 3, 2024.
ENVIRONMENTAL IMPACT:
The proposed project is subject to review under the California Environmental Quality Act (CEQA). Based on an Initial Study and Determination, a Mitigated Negative Declaration (EA19-001) was prepared and certified by the Del Mar City Council on June 6, 2022.
NEXUS TO CITY COUNCIL GOALS AND PRIORITIES:
This item relates to funding for the Del Mar Riverpath Extension Phase 3 which is a Tier 1 Priority Project for Fiscal Year 2024-25.
6 June 3, 2024 Item 14
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:
TO: Honorable Mayor and City Council Members
FROM: Martin Boyd, Project Manager II
Joe Bride, Public Works Director
Via Ashley Jones, City Manager
DATE: June 3, 2023
SUBJECT: Undergrounding Program Update and Task Order Approval for Utility Specialists Southwest, Inc. to Perform Utility Underground District (UUD) Pre-Formation Services for UUD 3 (South Hill)
REQUESTED ACTION/RECOMMENDATION:
Staff recommends the City Council: 1) Receive an update regarding the City’s Undergrounding Program; 2) Approve a $84,810 Task Order (Attachment A) with Utility Specialists Southwest, Inc. to perform utility underground district (UUD) pre-formation services for UUD 3 (South Hill); and 3) Authorize the City Manager to execute the Task Order and make amendments by up to $8,490 for extended consulting services.
BACKGROUND:
The City of Del Mar is moving forward with the citywide Undergrounding Program (UP), which will remove utility poles and replace overhead cables for electricity and telecommunications with underground lines. A map of the planned citywide Utility Undergrounding Districts (UUDs) is included with report as Attachment B for reference.
At City Council meetings held on April 15 and August 5, 2019, staff presented a Project Delivery Plan (Plan), which included a comprehensive set of recommendations from staff and the Undergrounding Project Advisory Committee (UPAC) to accomplish the citywide UP. The Council-adopted Plan included the designation of City blocks (i.e., areas) as Utility Undergrounding Districts (UUDs), an approach for prioritizing the order for UUD completion, and other guidelines and policies associated with how the project is implemented. The Plan prioritizes UUD work by service density (i.e., number of service connections to number of poles) and fire safety (in the case of UUD X1A).
Staff are currently working on different stages of UUDs 1A, X1A, 1B and 2, with UUD 3 identified as the next priority area. UUD 3 is located between Camino Del Mar and Crest Road (Attachment B). It includes an estimated 169 poles and 19,481 linear feet of overhead conversion to underground from approximately 8th Street to just north of 15th Street, covering 382 parcels. The pre-formation services will finalize the district boundary for UUD 3 and provide more accurate statistics for the project. 1 June 3, 2024 Item 15
City Council Agenda Report
UP Update and UUD 3 Pre-Formation Services Task Order
June 3, 2024
DISCUSSION/ANALYSIS:
Update on Active Undergrounding Districts
Tewa Court/10th Street UUD
On February 8, 2023, the Tewa Court/10th Street UUD project was officially completed, with the removal of the final pole as part of a pole removal ceremony. The City’s contract with San Diego Gas & Electric (SDG&E) is for actual cost billing for installation of cable & connections, pole removals, service cutovers, and engineering fees. The City is responsible for trenching and installation of conduit and substructures.
As part of the actual cost billing process, SDG&E provides the City with an initial estimated cost invoice prior to construction and then a final reconciliation invoice based on the actual costs after construction is complete. SDG&E’s initial estimated invoice was for $147,595 and the final reconciliation invoice was for an additional $97,002 (66%), resulting in a final cost of $244,597. The final reconciliation invoice was sent to the City in March 2024, and is included as Attachment C. SDG&E stated the reason for the significant increase in the final reconciliation invoice is because they have experienced enterprise-wide cost increases due to labor cost increases, inflation, and supply chain challenges.
Furthermore, the Tewa Court/10th Street project was small enough where SDG&E billed on a time and materials basis, whereas the upcoming districts are large enough where they will obtain fixed bids. The fixed bid process will have more control of reconciliation costs as the only expected changes in costs are for change orders due to unforeseen field conditions, need for specialty inspections, or any other unanticipated costs during construction.
SDG&E’s final cost to the City of $244,597, represents $182 per linear feet of trench. The final overall total project cost is $928,879, which is $691 per linear feet of trench. The total project cost includes required professional services during the design phase in preparation for the bid process, cost for City construction, costs paid to the utility companies for their engineering fees and construction work, and the cost for third party construction management services during construction. The final reconciliation invoice informs and revises the City’s previous understanding of UP costs. Staff is also considering SDG&E’s alternative net cost billing process for future projects, which would provide the City with more certainty in SDG&E costs on the front end of the project, as there would be no back end cost reconciliation.
UUD 1A – Stratford Court South
UUD 1A includes 56 poles and 7,650 linear feet of overhead conversion to 11,165 linear feet of underground trench from 4th Street to 12th Street, including 227 properties and 464 residences. 64 of the homes or buildings require undergrounding of their private service lateral at the expense of the property owner.
2 June 3, 2024 Item 15
City Council Agenda Report
UP Update and UUD 3 Pre-Formation Services Task Order
June 3, 2024
Staff presented on the City’s pre-bid process for UUD 1A to City Council on December 4, 2023, and is currently in the bid phase that precedes construction. The pre-bid process included acceptance of the Design Review Permit and Land Conservation Permit. A California Environmental Quality Act (CEQA) notice of exemption (NOE) was processed after the pre-bid process meeting. Staff and SDG&E are also in the process of obtaining easements, which is necessary to complete prior to the start of construction.
The City Construction bidding process commenced on March 20, 2024, and five bids were received on May 13, 2024. The bids ranged from $4.72 million (lowest responsive/responsible bid) to $8.80 million. The lowest base bid received of $4.72 million is $1.68 million higher than the engineer’s estimate of $3.04 million.
The following are some reasons for cost differences between the engineer’s estimate and actual bids received according to the UP consultants and contractor:
• Inflation of 20% since Tewa Court/10th Street UUD bids according to the California Construction Cost Index. The UUD 1A bid is 23% higher than the Tewa Ct/10th St UUD bid on a linear feet of trench basis;
• The project location is difficult for construction and traffic/pedestrian control since it is located within congested streets with a lot of utilities and near the beach; • Hand digging within proximity of protected trees, parallel existing utilities, and for exploratory potholes when crossing existing utilities;
• Shoring for deep trenches when crossing existing utilities; and • Anticipated effort for scheduling and coordination with SDG&E during construction.
SDG&E completed their preliminary designs in April 2023, and finalized those designs and material quantities in March 2024. The City, AT&T, Charter, and Crown Castle used SDG&E’s joint trench layout to complete their final designs. SDG&E provided the City with an estimate of $3.56 million in March 2024, for costs associated with their work, included as Attachment D. SDG&E’s estimate of cost is significantly greater than the $1 million originally budgeted for UUD 1A, which was based on SDG&E’s initial estimate invoice for Tewa Court/10th Street UUD. However, SDG&E’s final reconciliation invoice brings the cost to $182 per linear foot of trench. Applying this rate to the 11,165 linear feet of trench for UUD 1A brings the estimate cost to $2.03 million. SDG&E’s cost estimate is 77% higher than the Tewa Ct/10th Street UUD final reconciled costs on a linear feet of trench basis. SDG&E’s reasoning for cost increases is due to labor cost increases, inflation, and supply chain challenges. It is important to note that, unfortunately, the City does not have control over SDG&E’s design process and costs.
The total project cost for UUD 1A is now estimated to be $10.13 million based on the cost increases related to City construction and SDG&E. Attachment E includes a budget summary reflecting the estimated project costs from initial district formation to the current estimate for comparison. The cost estimate now includes a 10% project contingency for change orders due to unforeseen field conditions, need for specialty inspections, or any other unanticipated costs during construction. The prior total project cost estimate provided on December 4, 2023, was $5.36 million based on costs from the Tewa 3 June 3, 2024 Item 15
City Council Agenda Report
UP Update and UUD 3 Pre-Formation Services Task Order
June 3, 2024
Court/10th Street UUD, prior to receiving SDG&E’s final reconciliation invoice and without the 10% project contingency. The cost per linear foot of overhead conversion is now estimated at $1,325, and the cost per linear foot of joint trench is estimated at $908. This includes the cost of required professional services during the design phase in preparation for the bid process, cost for construction, costs paid to the utility companies for their engineering fees and construction work, and the cost for third party construction management services during construction.
On August 5, 2019, City Council approved recommendations made by the UPAC and staff pertaining to the preliminary undergrounding boundary map (i.e., blocks) and prioritization of the blocks related to the Plan. As part of this process, consultant Lee & Ro developed a program cost estimate of $51.6 million for approximately 77,135 linear feet of overhead in the City, which is a cost per linear foot of overhead conversion of $719. This estimated cost was significantly higher than those provided by the City’s current consultant Utility Specialists.
As part of developing the Plan, the City Council instructed staff and the UPAC to complete a deeper review of the costs to reconcile the differences in the program cost estimates between Utility Specialists and Lee & Ro. Through the review, UPAC developed a program cost estimate of $32 - $42 million, based on an estimated cost per linear foot of overhead conversion of $464 - $609. At that time, UPAC also acknowledged SDG&E provided a stated estimated range of $700 - $1,000 per linear foot of overhead conversion. Inflation is at 42% since August 2019, according to the California Construction Cost Index, which, when applied to the original per linear foot cost estimates provided by SDG&E in 2019, would result in costs ranging from $994 - $1,420 per linear foot, which are aligned with the current market. UUD 1A serves as an important UP milestone by providing additional procedural lessons learned and updated cost information to better understand the financial implications of the UP moving forward.
UUD X1A – Crest Canyon
UUD X1A includes 77 poles and 13,096 linear feet of overhead conversion to 19,610 linear feet of underground trench, including 152 properties and 114 residences.
Approximately 85 of the homes or buildings require undergrounding of their private service lateral at the expense of the property owner.
UUD X1A is currently in the design phase. Design phase activities include surveying existing conditions, utility company designs, city civil engineering design, homeowner service lateral design coordination, easement coordination/recordation, and environmental evaluation. SDG&E completed their preliminary designs in June 2023, and are currently finalizing those designs. AT&T, Charter, and Crown Castle are using SDG&E’s joint trench layout to complete their designs. The City’s undergrounding consultants are finalizing the civil engineering design and environmental studies anticipated to for completion in June 2024.
4 June 3, 2024 Item 15
City Council Agenda Report
UP Update and UUD 3 Pre-Formation Services Task Order
June 3, 2024
The project requires Planning Commission and Design Review Board review prior to City Council. The City Council meeting for the pre-bid process is currently anticipated for August 2024, followed by the public bidding process, and City Council consideration of construction contract award is planned for November 2024. Construction contract award is contingent upon receiving all necessary easements.
This District is within the City’s Lagoon Overlay and Bluff, Slope, and Canyon Overlay Zones, which means that in addition to any Design Review and Land Conservation Permits for retaining walls, as has been required in other Districts, the City must also process a Conditional Use Permit (CUP) and Coastal Development Permit (CDP). Upon City Council approval of the CDP staff will send a Notice of Final Action (NOFA) to the California Coastal Commission (CCC). Once CCC receives the City’s NOFA, a 10- business day appeal period with the CCC will begin.
Furthermore, the City is required to evaluate the project for any potential environmental impacts pursuant to CEQA. City staff anticipates being able to use a Categorical Exemption informed by the Biological and Cultural reports prepared by Helix Environmental Consultants.
Additionally, it has been determined there is one telecommunication pole located in the San Dieguito Lagoon that is in the CCC Original Jurisdiction. The removal of this pole will require a separate CDP application directly with the CCC. This CDP will be submitted after the City Council approves the local permits for the project. Since the actual undergrounding of the lines is done in the City’s right-of-way, processing of the separate CDP for the one pole can occur concurrent with the City’s start of the project provided that the CDP approved by the Council for the UUD X1A project otherwise is not appealed by the CCC.
Using the updated costs from UUD 1A, the estimated total project cost for UUD X1A is projected to be $16.63 million and includes a 10% project contingency. The cost per linear feet of overhead conversion is $1,484, and the cost per linear feet of joint trench is $848.
As with UUD 1A, more precise cost estimates will be provided at the completion of the design phase and actual construction costs will be determined through the competitive public bidding process to select and award the construction contract for the project.
It is important to note that while a more refined cost estimate will be provided by the City’s undergrounding consultant once the design is finalized, it is ultimately the construction market that will determine the actual cost of the project. Like all City construction projects, the cost of construction will be determined through the competitive bidding process that the City is required to undertake in order to identify the lowest qualified bidder for the project. Prior to the start of construction, the City Council will ultimately consider the lowest bid for the project and determine whether to award the contract. 5 June 3, 2024 Item 15
City Council Agenda Report
UP Update and UUD 3 Pre-Formation Services Task Order
June 3, 2024
UUD 1B – Stratford Court North
UUD 1B (Stratford Court North) includes approximately 40 poles and 4,297 linear feet of overhead conversion from 11th Street to just north of 15th Street (L’Auberge Del Mar), including 175 properties and 239 residences and businesses. Approximately 50 of the homes or buildings require undergrounding of their private service lateral at the expense of the property owner. The City Council formed the district on October 16, 2023, and the district is currently in the SDG&E preliminary design phase. Once SDG&E completes the preliminary design phase, the City will coordinate the City civil engineering design, utility companies designs, homeowner service lateral design, easement coordination/recordation, and City entitlement/environmental permitting.
UUD 2 – Beach Colony
UUD 2 (Beach Colony) includes approximately 96 poles and 11,795 linear feet of overhead conversion from approximately 18th Street to 29th Street, including 318 properties and 642 residences and businesses. UUD 2 is located west of railroad rightof-way and north of UUD 1B. Approximately 124 of the homes or buildings require undergrounding of their private service lateral at the expense of the property owner. The project team, which includes staff, City consultants, and utility company representatives, visited UUD 2 in February 2024, to verify boundaries based on field conditions, system circuitry, and project efficiency. Staff is working with SDG&E to utilize the remaining $351,742 of 20A funds as part of this district, since this program is ending and these funds will expire. The rest of the district will be funded via the typical 20B process. Staff is anticipating district formation as part of the City Council meetings in the next couple of months; however, this is contingent on coordination with SDG&E.
UUD 3 – South Hill (Pre-Formation Services)
Required Steps to Form District
The California Public Utilities Commission (CPUC) has an established regulation known as “Rule 20” that pertains to undergrounding of utility poles. Pursuant to Rule 20, UUDs can be created by the City or by property owners and include three specific types: Rule 20A: 100% Utility Funding; Rule 20B: Partial Utility Funding (Typically 20-40%); and Rule 20C: Partial Utility Funding (De Minimis Amount).
The UUD 3 project generally fits under the category of Rule 20B, which is anticipated to be the most common way to achieve undergrounding in Del Mar, with costs mostly paid by the City (i.e., public side of the property line) via Measure Q revenue (sales tax measure revenue source partially dedicated to the UP). SDG&E will credit the City approximately 20% of their construction costs for eligible Rule 20B projects, which is approximately the cost of removing the poles.
To form a UUD, Chapter 23.54 of the Del Mar Municipal Code requires a two-step process:
6 June 3, 2024 Item 15
City Council Agenda Report
UP Update and UUD 3 Pre-Formation Services Task Order
June 3, 2024
1. A public hearing is the first step by which the City Council, following a public hearing, will adopt a resolution that forms the UUD, and includes a finding that removal of the aboveground facilities is necessary to protect public health, safety, or general welfare.
2. The second step is for the City Council to adopt a resolution declaring the date by which all poles within the UUD must be removed. This step will occur in the future when the district is fully formed, and at which time it will become unlawful to construct or maintain above-ground facilities beyond the date established by the City Council for removal of such facilities. That will likely coincide with the time the design is finalized, and the project is advancing to the construction phase.
Pre-Formation Services
The City has an agreement in place with Utility Specialists Southwest, Inc. for as-needed specialized electrical engineering and consulting services related to implementation of the citywide UP. As such, staff recommends issuing a Task Order to Utility Specialists Southwest, Inc. to proceed with district pre-formation services for UUD 3 (South Hill). The district pre-formation services will include agency meetings and coordination, district formation support, and resident interface and communications. These services will assist the City in adopting a resolution that forms the UUD following a public hearing. The proposed Task Order, which has a total cost of $84,810 for the services (see Exhibit A), is included with this agenda report as Attachment A. Staff also recommends allocating $8,490 for Task Order extended services as deemed necessary and approved by the City Manager. If authorized to proceed, the City Council hearing for formal UUD 3 formation is expected to take place in December 2024.
Undergrounding Project Advisory Committee (UPAC)
The UPAC was reengaged by the City Council in 2023 and has since held four meetings in 2023 and one meeting in 2024. The UPAC currently has two active subcommittees for UP financing and review of property owner communication procedures. The first subcommittee was formed on April 27, 2023, to work with staff to complete a long-term project schedule and cash-flow analysis to ensure financial resources are available when needed throughout the life of the UP. The subcommittee conducted an initial analysis of program costs in 2023, with the goal of updating the analysis based on UUD 1A costs.
Staff and the subcommittee can now proceed with updating the analysis based on updated City construction and SDG&E costs. The second subcommittee was formed on March 14, 2024, to review and provide feedback to staff on processes and protocols for communications with property owners. The subcommittee has met once thus far in May 2024, and is preparing for an update to UPAC. The next UPAC meeting is scheduled for June 13, 2024, and staff will continue to update the City Council on UPAC activities. 7 June 3, 2024 Item 15
City Council Agenda Report
UP Update and UUD 3 Pre-Formation Services Task Order
June 3, 2024
SDG&E Roadmap
Staff is currently working with SDG&E to identify lessons learned and develop a roadmap to help deliver the undergrounding projects in a more efficient and timely manner. The roadmap will detail SDG&E’s and the City’s milestones and timelines and will incorporate lessons learned from the active undergrounding districts. Unfortunately, this process is taking longer than originally anticipated by City staff due to staffing changes at SDG&E and extensive internal review by SDG&E prior to being finalized for presentation to the City Council. Staff will continue to provide updates on this process as they become available.
FISCAL IMPACT:
Approval of the recommended action for this agenda item will require City Council authorization to amend the Fiscal Year (FY) 2023-2024 Operating and Capital Budget to allocate $93,300 from the Measure Q Fund as shown below:
ENVIRONMENTAL IMPACT:
The proposed City Council action does not constitute a “project” under the definition set forth in the California Environmental Quality Act (CEQA) Guidelines Section 15378 because it will not have a potential to result in a direct or indirect physical change in the environment and is, therefore, not subject to CEQA.
NEXUS TO CITY COUNCIL GOALS & PRIORITIES:
Utility Undergrounding is listed as a Tier 1 City Council priority for FYs 2022-2023 and 2023-2024.
ATTACHMENTS:
Attachment A – Utility Specialists Southwest, Inc. Task Order Exhibit A to Attachment A – UUD 3 Pre-Formation Services Scope of Work Attachment B – UP Citywide Map
Attachment C – SDG&E Tewa Court/10th Street UUD Project Cost Reconciliation Attachment D – SDG&E UUD 1A Cost Estimate
Attachment E – UUD 1A Project Budget
PROJECT FUND ACCOUNT AMOUNT
UUD 3 – South Hill Measure Q Fund 02.7000.7206 $93,300
8 June 3, 2024 Item 15
1050 Camino Del Mar, Del Mar, CA 92014 | 858.755.9313 | www.delmar.ca.us June 3, 2024
Utility Specialists Southwest, Inc. SENT VIA EMAIL
Attn: Duane Stroobosscher
4429 Morena Boulevard
San Diego, CA 92117
[email protected]
RE: TASK ORDER & NOTICE TO PROCEED FOR THE UTILITY UNDERGROUND DISTRICT 3 (SOUTH HILL) – DISTRICT PRE-FORMATION SERVICES (ACCOUNT
02.7000.7206)
This Task Order (TO) Amendment and Notice to Proceed (NTP) is issued pursuant to the terms and conditions contained in the as-needed Specialized Electrical Engineering Services Related to Implementation of a Citywide Undergrounding Program Agreement between the City of Del Mar and Utility Specialists Southwest, Inc. (Consultant), the term for which is December 16, 2019, to December 16, 2024.
Consultant shall execute tasks related to the Utility Underground District X1A (Crest Canyon), as described in the Consultant’s proposal included as Exhibit A to this Task Order. The project cost for this Task Order Amendment shall not exceed $84,810 unless a task order amendment is authorized by the City Manager for extended consulting services. The project schedule shall commence upon execution of this Task Order Amendment/Notice to Proceed, and shall be completed by December 2024, to the satisfaction of the Public Works Director, in accordance with the proposed Scope of Work included in Exhibit A.
The primary contact for this Task Order and invoicing is Martin Boyd, Project Manager II, who can be reached at [email protected] and (858) 375-9531. Please sign and return a copy of this Task Order electronically through OneSpan, the City’s electronic document routing program.
Please contact Management Analyst Denise Galvan at [email protected] or (858) 704-3657 with any questions about executing this Task Order amendment.
Approved by: Accepted by:
City of Del Mar Utility Specialists Southwest, Inc.
_____________________________________ _______________________________________ Ashley Jones Date Duane Stroobosscher Date
City Manager Vice President
cc: Joe Bride, Public Works Director
Martin Boyd, Project Manager II
Diana Martinez, Associate Management Analyst
Exhibit A: Utility Specialists Southwest,Inc. - UUD 3 Pre-Formation Services Scope of Work 9 June 3, 2024 Item 15
Item # Description US
Principal US Sr. PM KCM Sr. PM US PM KCM PM US Asst PM KCM PE Total Cost 1 Agency Meetings and Coordination
a Attend bi-weekly coordination Zoom meetings with CDM staff for 5 months (time divided between District 1A, X1A, 1B, 2 & 3). 3.0 3.0 3.0 3.0 $2,220 b Prepare and distribute meeting agendas and minutes for by-weekly coordination meetings (time divided between District 1A, X1A, 1B, 2 & 3) 2.0 3.0 $915 c Meet with SDGE and other utilities, during their initial and follow-up site visit, to provide value-added engineering insights and SOQ's. Assumes four (4) field walks at 4 hours each plus travel. 12.0 32.0 20.0 20.0 $14,840 d Attend City Council meetings, includes two meetings. 8.0 8.0 $2,920 e Filing and document management 10.0 4.0 $1,860
Total Hours 23.0 35.0 5.0 0.0 34.0 10.0 24.0 $22,755
2 District Formation Support
a Coordinate to prepare materials for City Council Meeting as required for the formation of District 3. 4.0 4.0 8.0 4.0 $3,420 b Develop concept schedule for District 3. 2.0 2.0 6.0 $1,820 c Complete quantity takeoffs for District 3 summary stats for narrative (number of poles, linear feet of overhead, estimated linear feet of undergrounding, number of parcels/properties, and number of residences/businesses.). 16.0 24.0 $6,760 d Prepare District 2 status reports and other handout materials, as requested by City staff, for City Council hearings. 4.0 2.0 16.0 24.0 $7,870 e Site visits to verify homes/buildings requiring lateral undergrounding and input of site visit results into database and narrative. 24.0 24.0 2.0 8.0 $9,590 Total Hours 30.0 4.0 8.0 24.0 48.0 4.0 56.0 $29,460
3 Resident Interface and Communications
a Populate database with City GIS parcel and property owner information. 8.0 24.0 $5,360 b Complete quality control review of GIS data. 2.0 8.0 24.0 $5,750 c Prepare Mailer List for use in distributing Notices to within District 3 and within 300’ of each District. Prepare exhibits of Plot GIS exhibits of withing District and within 300' limits. Download City GIS data for properties within the district and within 300'. Reformat excel data for envelop/label printing (eg Delete duplicates and fix street address column information (eg move C/O)). Do not check against water billing at this stage. Site visits for address verifications to supplement missing information from City GIS data including added rental units, condo and apartment unit numbers, and public building addresses.
2.0 20.0 60.0 $13,790
d Setup individual property correspondence file folders. 1.0 2.0 24.0 $4,505 e Provide resident inquiry responses. 2.0 16.0 $3,190
Total Hours 0.0 0.0 7.0 0.0 54.0 0.0 132.0 $32,595
Total Overall Hours 53.0 39.0 20.0 24.0 136.0 14.0 212.0 Average Hours per Week (based upon 6 month schedule) 2.2 1.6 0.8 1.0 5.7 0.6 8.8 Rate Per Hour $190 $180 $195 $140 $175 $120 $165
Total Cost $10,070 $7,020 $3,900 $3,360 $23,800 $1,680 $34,980 Task Order #06: District 3 Formation Services
5/28/2024
Task Order #06: District 3 Formation Services
Utility Specialists & KCM Hourly Assumptions
City of Del Mar Undergrounding Program - Task Order #06 R2 $84,810
Task Order #06R1 includes services from the District 3 project kickoff in June 2024 through the City Council's formation of the District (anticipated through November 2024). 10 June 3, 2024 Item 15
ATTACHMENT B
11 June 3, 2024 Item 15
March 19, 2024
Martin Boyd
City of Del Mar | Project Manager
1050 Camino del Mar
Del Mar, CA 92014
SUBJECT: RULE 20B | Tewa Court | Project Cost Reconciliation Thank you for your continued partnership with San Diego Gas & Electric (SDG&E) to underground our overhead electric power lines to help improve community aesthetics and meet our commitment to provide clean, safe, and reliable energy to our customers.
As noted in the attached Agreement for Replacement of Overhead with Underground Facilities, duly executed on April 28, 2022, California Public Utility Commission Rule 20B projects, including the City’s Tewa Court 20B Project, utilize an Actual Cost Billing methodology. The Agreement states at paragraph 4, “The conversion work will be tracked and billed on an actual cost basis, meaning that all costs will be reconciled at completion of the work and SDG&E will bill or refund to Applicant any difference larger than $100.”
Prior to the start of construction, a payment of $147,595.00 was received from the City, which was the then-estimated cost of SDG&E’s conversion work for the approved design. The City was issued a credit of $192,518.00 for this payment which includes the actual payment receipt ($147,595.00) and credits for work performed by the city ($44,923.00).
Over the last several years, SDG&E has experienced enterprise-wide cost increases due to labor cost increases, inflation, and supply chain challenges. At this time, SDG&E’s construction is considered full and complete, and we are ready to complete the noted Actual Cost Billing Reconciliation.
12 June 3, 2024 Item 15
SDG&E incurred total actual project costs of $560,788.86 for construction of the Tewa Court 20B project. As you are aware, the Rule 20B tariff provides the City a credit for the estimated cost to build a new equivalent overhead system. SDG&E also absorbs the costs associated with the removal of existing overhead facilities.
We are respectfully requesting the City comply with its contractual obligations and promptly issue payment for the remaining unpaid costs incurred by SDG&E, less the payment previously collected, less any credit for the estimated cost to build a new equivalent overhead system, and less the actual cost incurred to date for the removal of overhead facilities. The breakdown is illustrated in the table below.
Project Costs (Actuals) $560,788.86
Payments & Credits ($192,518.00)
OH Equivalent Credit (Non-Billable) ($113,274.00)
OH RFS (Non-Billable) ($157,994.74)
Current Balance (Billable) $97,002.12
Thank you in advance for your prompt attention to this matter. Please reach out with any questions or concerns and I will work with my team to provide answers.
Sincerely,
Allison McEachen
Design & Project Management
Franchise Planning | Proj Planning Supervisor
M 619.372.7734
cc:
Ashley Jones | City of Del Mar | City Manager
Joe Bride | City of Del Mar | Director of Public Works
Kelli Fitzgerald | SDG&E | Design & Project Mgmt Manager Kate Loredo | SDG&E | Design & Project Mgmt | Contract Project Manager Ilario Romano | SDG&E | Design & Project Mgmt | Contract Project Manager 13 June 3, 2024 Item 15
March 21, 2024
Martin Boyd
City of Del Mar
1050 Camino Del Mar
Del Mar, CA 92014
RE: City of Del Mar | Rule 20B | District 1A - Stratford Court South | Cost Estimate Thank you for your continued partnership with San Diego Gas & Electric (SDG&E) to underground our overhead electric power lines to help improve community aesthetics and meet our commitment to provide clean, safe and reliable energy to our customers. This responds to your request for an initial cost estimate for the City of Del Mar’s Rule 20 project, Stratford Court South 20B.
Del Mar City Council has established Utility Underground District (UUD) No.1A: West of Camino Del Mar to the coast and from 4th Street to 12th Street. The City has opted to utilize municipal trenching to complete this district and will be responsible for all civil work and all community outreach activities.
Stratford Court South (UUD 1A) is a Rule 20B project and will utilize an Actual Cost Billing Contract, whereby in advance of construction SDG&E will collect from the City an amount equal to the estimated cost of the conversion work computed in accordance with its Filed Rule on “Replacement of Overhead with Underground Facilities”, including engineering fees. The conversion work will be tracked and billed on an actual cost basis, meaning that all costs will be reconciled at completion of the work and SDG&E will bill or refund to the City any differences larger than $100.00.
Please note, SDG&E is providing the following cost estimates for reference purposes only and makes no representations, warranties or promises regarding the accuracy, timeliness, quality or completeness of the estimates. Estimates are based on known, current information and existing circumstances. SDG&E will not be liable for any damages, causes of action or losses arising or claimed to arise out of the use of these estimates.
14 June 3, 2024 Item 15
District 1A | Stratford Court South
SDG&E Electrical Contractor – Cable & Connections
SDG&E Electrical Contractor – Cable Poles
SDG&E Electrical Contractor – Service Cutovers
$ 2,807,102
$ 601,879
$ 176,775
BILLABLE TOTAL $ 3,585,756
SDG&E Contractor - Overhead Removals (SDG&E Responsibility) $ 1,298,812 NONBILLABLE TOTAL $ 1,298,812
Sincerely,
Allison McEachen
Design & Project Management
Franchise Planning | Proj Planning Supervisor
M 619.372.7734
cc:
Kelli Fitzgerald – SDG&E | Design & Proj Mgmt | Franchise Planning Manager Joe Gabaldon – SDG&E | Regional Public Affairs | Senior Public Affairs Manger Ilario Romano, PMP – SDG&E | Design & Proj Mgmt | Franchise Project Manager 15 June 3, 2024 Item 15
UUD 1A Estimated Total Project Costs (02-7000-7202)
Does not include costs for internal staff time or necessary City personnel for project management Work Categories
District
Formation
Budget
7-12-21
Budget as of
10-16-23
Pre-Bid
Budget
12-4-23
Budget as of
6-3-24
Pre-Construction Phase - Professional Services
Utility Specialists - Pre-Construction Services (Includes US, KCM, Fuscoe) $543,900 $576,700 $647,878 $647,878
1. City and Agency Coordination $27,100 $43,370 $43,370 $43,370
2. District 1A Design $423,010 $439,540 $505,352 $505,352
3. Resident Interface and Project Status Tracking $56,160 $56,160 $68,926 $68,926
4. Public Bidding Support $37,630 $37,630 $30,230 $30,230 City Arborist Review $5,000 $5,000 $3,525 $3,525
Environmental Review; City to complete in-house $0 $0 $0 $0 GIS Services As-Needed $2,000 $2,000 $0 $0
Communications Consultant Services $5,000 $5,000 $5,000 $5,000 Subtotal for Pre-Construction Professional Services $555,900 $588,700 $656,403 $656,403 Utility Companies - Estimates for City Paid Design and Construction Costs SDG&E
7-12-21 to 12-4-24 estimated per LF of overhead or trench from UUD Tewa. 6-3-24 estimate provided by SDG&E.
$904,842 $959,175 $1,004,850 $3,585,756
AT&T
7-6-21 estimated based on UUD Tewa. 7-6-23 to 6-3-24 updated based on UUD 1A specific including 15% contingency
$678,632 $180,000 $163,944 $163,944
Spectrum/Charter $284,297 $0 $0 $0
Crown Castle $0 $0 $0 $0
Subtotal for Utility Company Costs $1,867,771 $1,139,175 $1,168,794 $3,749,700 Construction Phase
City's General Contractor (Actual amount will be determined via City bid process) 7-12-21 estimate based on $120/LF of overhead. 7-6-23 estimate based on UUD Tewa $344.40/LF of trench. 12-4-23 estimate based on engineer's estimate. 6-3-24 based on actual bid. $1,344,000 $3,146,108 $3,049,746 $4,717,395
Utility Specialists Construction Management and Support (12-month construction) 7-12-21 for as needed for duration of construction. 7-6-23 to 6-3-24 for full-time City construction and asneeded for remainder of construction .$210,200 $423,740 $423,740 $415,250 Storm Water Compliance Services
7-12-21 included as part of line item. 7-6-23 to 6-3-24 removed as to be done by contractor. $30,480 $22,080 $22,080 $0 Additional Construction Management Services
For any additional necessary professional services during construction. $48,136 $33,964 $84,748 $71,513 Subtotal for Construction Phase $1,632,816 $3,625,892 $3,580,314 $5,204,158 Combined Estimated Total $4,056,487 $5,353,767 $5,405,511 $9,610,261 Project Contingency
10% of Construction Phase Costs $0 $0 $0 $520,416
Combined Estimated Total + Contingency $4,056,487 $5,353,767 $5,405,511 $10,130,676 16 June 3, 2024 Item 15
City of Del Mar
Agenda Report
TO: Honorable Mayor and City Council Members
FROM: Monica Molina, Finance Manager/Treasurer
Ashley Jones, City Manager
DATE: June 3, 2024
SUBJECT: Review Fiscal Year 2023-24 Third Quarter and Proposed 2024-25 Operating and Capital Budget Update
REQUESTED ACTION/RECOMMENDATION:
Staff recommends that the City Council: 1) Review and provide feedback on the proposed Fiscal Year (FY) 2023-24 Third Quarter Adjustments and FY 2024-25 Budget Update Report; 2) Approve the reclassification of the Community Services Administrative Assistant and Public Works Project Manager II as described in this report; and 3) Approve Resolution (Attachment A) amending the FY 2023-24 Operating and Capital Budget as included in Exhibit A and B of Attachment A.
BACKGROUND:
On June 19, 2023, the City Council adopted the FY 2023-24 and 2024-25 Operating and Capital Budget (Original Budget). As is standard practice, the purpose of this agenda item is to review and make adjustments to the FY 2023-24 budget based on third quarter results and update the FY 2024-25 Budget in preparation for the start of the new fiscal year on July 1, 2024. The Original Budget was prepared with the assumption that all General Fund revenue sources would meet or exceed pre-pandemic levels before the beginning of FY 2023-24, and restored services to prepandemic levels, funded important operations and re-established capital and special projects that were previously placed on hold. The second year (FY 2024-25) of the Original Budget was adopted with a General Fund Contingency (GFC) of 26.54% (97 days of operations), and included reserve transfers of $360,000 to the Pension Reserve, $300,000 to the Housing Reserve, $200,000 to the Capital Reserve, and $100,000 to the Equipment Replacement Reserve.
DISCUSSION/ANALYSIS:
The City is in a healthy financial position and has recovered from the economic impacts of COVID19, with all revenues back to pre-COVID levels. Increasing projected revenues cover the rising cost of expenditures due to inflation, and allow the City to continue to transfer funds to reserves to ensure the City’s capital, pension, equipment replacement, and housing needs are properly planned for and available when needed.
Based on the current positive revenue trends and increases in operational costs, staff is recommending adjustments to the FY 2023-24 and FY 2024-25 Budgets. Third quarter amendments to FY 2023-24 reflect additional anticipated revenues of $945,000, with no changes to expenditures. The proposed FY 2024-25 Budget Update presented in this report reflects an anticipated increase in revenues totaling $2,095,400 and an increase to expenditures of $1,487,810, with a projected GFC of 25.69% (94 days of operations). More detailed information and justification for these adjustments are provided below.
FISCAL YEAR 2023-2024 THIRD QUARTER REVIEW
As part of the FY 2024-25 Budget Update, staff reviewed FY 2023-24 third quarter (July 2023- March 2024) receipts to evaluate current trends and to determine the adjustments needed for next fiscal year. Based on this review, staff is recommending increasing General Fund revenues, 1 June 3, 2024 Item 16
City Council Agenda Report
Fiscal Year 2023-24 Third Quarter and Fiscal Year 2024-25 Budget Update Report June 3, 2024
including Measure Q, by $945,000 as summarized in Table A. The recommended adjustment to Measure Q is to account for an increase in interest earnings on Measure Q funds. The Revenue Summaries report (Exhibit A to Attachment A) includes all recommended revenue adjustments for FY 2023-24.
Table A: FY 2023-24 Third Quarter Recommended General Fund Revenue Adjustments Revenue Source Mid-Year Budget
FY 2023-24
Recommended
Adjustments
Revised Budget
FY 2023-24
Property Tax $7,500,000 $150,000 $7,650,000
Franchise Tax 300,000 120,000 420,000
Business License Tax 200,000 145,000 345,000
Parking Violations 1,200,000 100,000 1,300,000
Investment Earnings 270,000 150,000 420,000
Planning Services 1,082,000 180,000 1,262,000
Other Revenue 10,239,487 - 10,239,487
Total General Fund $20,791,487 $845,000 $21,636,487
Measure Q $3,200,000 $100,000 $3,300,000
Staff is not recommending any expenditure adjustments for FY 2023-24. Projections for some programs are anticipated to exceed budget; however, that will be offset by programs that are anticipated to come in under budget, which will be handled under the City Manager’s budget authority.
FISCAL YEAR 2024-2025 REVENUE PROJECTIONS
Adjustments to the FY 2024-25 revenue projections are based on positive trends in property tax, flattening of transient occupancy tax (TOT), slight anticipated increases to sales tax receipts, and impacts to other revenue sources. In comparison to the FY 2024-25 Original Budget, General Fund revenues included in the Budget Update report are projected to increase by $1,589,770, resulting in a new General Fund revenue total of $22,320,310.
Property Tax
Property tax is the City’s largest source of revenue and accounts for approximately 36% of total General Fund revenues. Del Mar’s property valuations have consistently increased, even during times of economic recession and the pandemic. Table B below includes historical property tax results and percent of increase from prior year results. Staff recently received the estimate of locally assessed values from the County Assessor’s Office. Based on this data, staff is recommending adjusting revenue in FY 2023-24 by $150,000 to $7.65 million in FY 2024-25 and by $569,460 to $8.03 million as reflected in the table below. 2 June 3, 2024 Item 16
City Council Agenda Report
Fiscal Year 2023-24 Third Quarter and Fiscal Year 2024-25 Budget Update Report June 3, 2024
Table B: 10-Year Property Tax Revenue Results/Projections Fiscal Year Actual/Projection* % Change
2024-25 $8,032,500* +5.0%*
2023-24 7,650,000* +5.6%*
2022-23 7,241,627 +9.5%
2021-22 6,615,450 +3.5%
2020-21 6,384,954 +6.7%
2019-20 5,983,399 +5.7%
2018-19 5,662,270 +4.8%
2017-18 5,405,272 +5.4%
2016-17 5,129,723 +7.2%
2015-16 4,787,517 +6.8%
Transient Occupancy Tax (TOT)
TOT is the second largest source of revenue for the City and accounts for approximately 17% of total General Fund revenues. Based on TOT revenues received through March 2024, current year TOT revenue is expected to be met or come in slightly higher than the current budget projection of $3.8 million. Based on discussions with the Del Mar Village Association and local hotel operators, TOT revenues are expected to remain relatively flat through FY 2024-25, except for higher TOT revenues expected in November 2024 as a result of the Breeders Cup. Staff is recommending a slight adjustment of $20,000 to TOT projections for FY 2024-25 from $3.8 million to $3.82 million. Table C provides historical TOT collection data along with projections for FY 2024-25.
Table C: 6-Year TOT Revenue Results/Projections
Quarter FY19-20
Actuals
FY20-21
Actuals
FY21-22
Actuals
FY22-23
Actuals
FY23-24
Actuals
FY24-25
Projection
Jul-Sep $983,129 $658,185 $1,112,707 $1,358,485 $1,277,734 $1,278,000* Oct-Dec 329,677 329,677 738,449 788,185 845,848 851,000* Jan-Mar 203,910 203,910 616,443 717,328 738,330 738,000* Apr-Jun 600,318 600,318 952,267 952,394 952,088* 953,000* Totals $2,300,505 $1,792,090 $3,419,866 $3,816,392 $3,814,000 $3,820,000* *Anticipated revenue collection and projections
Sales & Use Tax:
Sales tax is the City’s third largest source of revenue and account for 10% of the City’s total General Fund revenues. Based on current trends and guidance from the City’s sales tax consultant, HdL Companies (HdL), and other economic forecasts, tax revenues are projected to slightly increase in FY 2024-25 when compared to FY 2023-24 collections. However, staff is not recommending adjusting the budgeted $2.3 million sales tax revenues for FY 2024-25.
Adjustments to revenue can be made during the FY 2024-25 Mid-Year Budget Process if needed.
Franchise Tax
Due to the new franchise agreement with EDCO that became effective on July 1, 2023, there has been an increase in franchise tax revenue collection. As such, increased franchise tax revenue adjustments are recommended for FY 2023-24, by $120,000 to $420,000, and in FY 2024-25 by $130,000 to $430,000.
3 June 3, 2024 Item 16
City Council Agenda Report
Fiscal Year 2023-24 Third Quarter and Fiscal Year 2024-25 Budget Update Report June 3, 2024
Business License Tax
The first year of HdL business license tax & fee administration services began in December 2022, with implementation of the 2023 business license renewal cycle. After a full year of service, which also includes business license compliance services, staff was able to analyze total collections.
Staff’s analysis indicates business license revenue is coming in approximately 25% higher, when compared to FY 2022-23 receipts. Net of the cost of services provided by HdL, business license revenue is coming in approximately 10% higher when compared to collections when services were performed in-house. This is largely due to the compliance service that is provided by HdL, which there wasn’t capacity to perform when services were in-house. Staff is recommending increasing projected business license revenue for FY 2023-24 by $145,000 to $345,000, and in FY2024-25 by $140,000 to $350,000.
Parking Violations
In comparison to other revenue sources, parking violation fluctuates year to year based on weather conditions and staff coverage. Based on current trends, staff is recommending increasing projected parking violation revenues in FY 2023-24, by $100,000 to $1.3 million, and in FY 2024-25 by $300,000 to $1.25 million.
Investment Income
Investment income revenue for all funds is coming in higher than originally projected. This is due to staff investing in short-term fixed income investments, which currently have a more favorable rate of return. An adjustment during Mid-Year was made to reflect this increase and an additional increase of $150,000 is being recommended for the remainder of FY 2023-24. Although interest rates are leveling off or coming in slightly lower than a few months ago, staff is recommending adjusting FY 2024-25 projected investment income revenue by $130,000 to $400,000.
Coronavirus State and Local Fiscal Relief Fund (SLFRF)
In March 2021, President Biden signed the $1.9 trillion American Rescue Plan Act (ARPA). The plan included $350 billion in emergency funding for state, local, territorial and tribal governments, known as the Coronavirus State and Local Fiscal Recovery Funds (SLFRF). The City of Del Mar has been allocated a total of $1,033,196, of which $870,886 was approved by the City Council on October 3, 2022, for the purchase of a new fire engine. The remaining $162,310 must be allocated by December 31, 2024, and expensed by September 30, 2026. Staff is recommending applying the remaining funds to the Pavement Rehabilitation project, which is an eligible expense because it was deferred during the pandemic. Included as part of the FY 2024-25 Budget Update is an adjustment of $162,310 to represent the SLFRF revenues that will be applied towards the $750,000 Pavement Rehabilitation project expenditures.
Planning Services
Based on current engineering and building services activity, staff is recommending increasing projected revenue for the current year by $180,000 to $1.26 million, and for FY 2024-25 by $138,000 to $1.22 million. An increase in building services expenditures will also be included in this report, since building services consulting are based on 80% of revenue collections.
Table D below summarizes the requested General Fund FY 2024-25 Budget Update adjustments:
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City Council Agenda Report
Fiscal Year 2023-24 Third Quarter and Fiscal Year 2024-25 Budget Update Report June 3, 2024
Table D: FY 2024-25 Budget Update Recommended Revenue Adjustments Revenue Source Adopted Budget
(June 2023)
Recommended
Adjustment
Revised Budget
Property tax $7,463,040 $569,460 $8,032,500
TOT 3,800,000 20,000 3,820,000
Franchise tax 300,000 130,000 430,000
Business license tax 210,000 140,000 350,000
Parking violations 950,000 300,000 1,250,000
Investment income 270,000 130,000 400,000
Coronavirus relief funds - 162,310 162,310
Planning services 1,082,000 138,000 1,220,000
Other revenue 6,655,500 - 6,655,500
Total $20,730,540 1,589,770 $22,320,310
Other Non-General Fund Revenue Adjustments
Included in this report is a total net increase of $469,630 in non-General Fund revenue adjustments which are largely related to a increase in the Open Space fund to account for the first year of rental income totaling $221,670 from The Winston School, offset by the mis-calculated revenue projection that was made in both FY 2023-24 and FY 2024-25 of $100,000. An increase in the Enterprise Funds of $133,000 to the Water Fund, and $180,000 to the Wastewater Fund is also included based on current activity. The Revenue Summaries report (Exhibit A to Attachment A) includes all recommended revenue adjustments for FY 2024-25.
OPERATING EXPENDITURES
Operational expenditures largely consist of Employee Services; Maintenance and Operations; and Contractual Services. The FY 2024-25 Budget Update reflects an increase to General Fund operational expenditures of $857,560 (5.4%). The below analysis will focus on General Fund Expenditures that are greater than $25,000.
Employee Services
This budget category includes costs for all salaries, benefits, workers’ compensation, and overtime pay to internal staff. In comparison to the FY 2024-25 Original Budget, this category increased by $232,900 (2.8%) in the General Fund. This adjustment is largely based on the following:
• 3% Cost-of Living increase for Fire and General employees based on their respective Memorandum of Agreement (MOA), and a 3% Cost-of-Living adjustment for all unrepresented employees.
• Adjustment of $212,870 related to the Del Mar Firefighters Association (DMFA) labor agreement that was approved in July 2023, following adoption of the two-year budget. • Recalculated employee salaries, considering retirements and employee turnover, which resulted in a budget savings of $46,290.
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City Council Agenda Report
Fiscal Year 2023-24 Third Quarter and Fiscal Year 2024-25 Budget Update Report June 3, 2024
• A total of $42,900 in seasonal salaries was added to the FY 2024-25 Budget related to support for the Planning Department and the Lifeguard Division of the Community Services Department.
• Reclassification of the Administrative Assistant position in the Community Services Department (CSD), to a Management Analyst position and the reclassification of the Project Manager II position in the Public Works Department to a Principal Engineer position, which will have a combined budget impact of $15,070. These reclassifications are being recommended based on the positions’ work assignments and needs of the City, reflecting existing job activities and to further allow the employees in these classifications to take on additional duties and responsibilities. This change would be effective as of the next pay period, and there are sufficient funds available to cover these costs through the end of the current fiscal year (June 30).
• Compensation adjustments totaling $8,350 to the General Fund, reflecting a 6% adjustment to the compensation for Principal Engineer to bring the position within 3% of the regional median to ensure the City is able to recruit and retain high quality employees and minimize employee turnover ($3,790) and to provide employees with an engineer’s license a 10% Certification pay ($4,560), which is the practice for many agencies and directly benefits the City.
Maintenance and Operations
This budget category consists of costs related to day-to-day operations and includes items like operating supplies, utility expenses, vehicle maintenance, general maintenance and supplies, and postage. An increase of $195,180 (12.6%) to the FY 2024-25 General Fund Maintenance and Operations category is being recommended by staff, which is primarily based on the following:
• $102,980 increase in General Fund expenditures related to insurance premium/claim costs. According to insurance publications, last year California experienced the “hardest insurance market in a generation.” A year later, this narrative continues, and California is facing challenging property insurance conditions, as well as unfavorable liability claims trends, resulting in large increases in premiums.
• $62,000 increase in operational costs related to equipment maintenance & repair; vehicle maintenance; and property tax administration fees (offset by increase in property tax revenue).
• $30,200 in the Community Services Department budget to install and implement License Plate Reader equipment/software for the Parking Enforcement program. This cost will be offset by an increase in parking violation revenue.
Contractual Services
This budget category consists of all contractual services provided by outside vendors and includes items such as law enforcement, landscaping, tree trimming, janitorial, audit, and consulting services, which is proposed to increase by $429,480 (7.3%) in FY 2024-25. This increase is primarily due to:
• $161,600 increase to legal fees based on current litigation/claims activity and support for Council approved City work plan items including capital and special projects. 6 June 3, 2024 Item 16
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Fiscal Year 2023-24 Third Quarter and Fiscal Year 2024-25 Budget Update Report June 3, 2024
• $121,380 increase to Planning Services related to use of a contract planner to complete processing of a large-scale planning project that current staff do not have capacity to take over and complete timely.
• $60,350 increase related to increased costs in communications consulting services; new hire backgrounds and human resources services; Firewall services to enhance cyber security; business license processing fees (offset with increased revenue); and digital archiving and records destruction services.
• $46,400 increase to Building Services division, which represents 80% of the anticipated building revenue increase.
• $27,250 increase to the City Clerk division to account for the additional estimated election costs related to anticipated November 2024 ballot measures. • $12,500 increase in the Community Support program related to a requested increase to the cost of economic development services provided by the Del Mar Village Association (DMVA). The DMVA has requested an increase to their contractual fees over the next two fiscal years, together totaling $25,000. This is to account for necessary inflation adjustments, enhanced service requirements, cost of living wage and contractor cost increases, addition of sustainability and long-term initiatives, additional grant opportunities, and resource and technology upgrades. Given that the DMVA’s contractual services fees have not been increased since 2010 (14 years), this request seems fair and reasonable for the services provided, and would increase the contract amount from $50,000 to $62,500 for FY 2024-25.
The Expenditure Summaries report (Exhibit B to Attachment A) includes all recommended expenditure adjustments for FY 2024-25.
EQUIPMENT REPLACEMENT
A total of $153,840 in equipment replacement items have been added to the FY 2024-25 Budget Update which have no impact to the General Fund Contingency, since these expenditures are paid out of the Equipment Replacement Fund. The FY 2024-25 Original Budget included $28,400 to replace ATVs in the Community Services department and two (2) utility trucks in the Public Works Department. An additional $150,000 is proposed to be used toward an initial lease to own payment to replace the Public Works jet vacuum truck, which is 12 years old and well past its useful life. The jet vacuum truck is critical public works equipment used to clean sewer mains, storm drains, and dig water for street excavation. The cost of a new machine is approximately $500,000. In the upcoming fiscal year, staff will be evaluating lease-to-own options for a new jet vacuum truck.
CAPITAL IMPROVEMENT PROJECTS
On March 11, 2024, the City Council held a Goals and Priorities Setting Workshop, which is the basis for the City’s annual work plan and aids City staff in identifying the necessary budgetary and staffing resources to accomplish the Council established goals. Included in the Work Plan are Capital Improvement and Special Projects for FY 2024-25. Table E below reflects funds that were allocated to FY 2024-25 capital projects during the two-year budget adoption and an additional $165,000 in requested funding.
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City Council Agenda Report
Fiscal Year 2023-24 Third Quarter and Fiscal Year 2024-25 Budget Update Report June 3, 2024
Table E: FY 2024-25 Capital Improvement Projects
Project Name
Original
Budget
FY 2024-25
Additional
Request
FY 2024-25
Funding Source
29th Street Sea Wall and Beach Access $50,000 - Open Space/GF Powerhouse Repairs/Improvements 31,000 - Open Space/GF
Pavement Rehabilitation 700,000 $50,000 GF/TransNet/MQ
Major Facilities Maintenance 100,000 - GF
CDM Bridge-Federal Funding 1,250,000 - Federal
CDM Bridge-Local Match 161,950 - County Funds
Major Arterial Bike Route Repairs 60,000 - GF
Small Area Pavement Repairs - 60,000 GF
Jimmy Durante Blvd Bluff Repairs - 50,000 GF
Citywide Bridge Repairs 100,000 - GF
Storm Drain Improvements 365,000 - Clean Water/GF
Water Valve Replacements 25,000 5,000 Water
Water Infrastructure Improvements 352,000 - Water
Citywide Pressure Upgrades 240,000 - Water
Wastewater Infrastructure Improvements 425,000 - Wastewater Total $3,859,950 $165,000
Pavement Rehabilitation - $50,000
On March 4, 2024, the City Council reviewed and discussed the results of the 2023 Five-Year Pavement Management Program Report and approved staff’s recommendation to budget $750,000 per year for citywide paving work. A total budget of $700,000 for paving was included in the original FY 2024-25 Budget, and staff is recommending an additional $50,000 to bring the total paving budget to $750,000. This project is funded with various funding sources including $162,310 in SLFRF (as described above); $147,000 in TransNet funds; $100,860 in Road Maintenance Rehabilitation Account funds; $45,500 in Measure Q funds, and $253,950 in General Funds.
Small Area Pavement Repairs - $60,000
Citywide small area pavement repairs are included in the FY 2024-2025 Work Plan as a Tier I priority, which requires a budget allocation of $60,000 from the General Fund.
Jimmy Durante Blvd Bluff Repairs - $50,000
Additional funds in the amount of $50,000 are included in the FY 2024-25 Budget Update to complete the design and construction improvements to permanently protect the bluff in the City right of way along Jimmy Durante Boulevard. FY 2024-25 activities include structural engineering, architectural rendering, environmental permitting, final engineering design, and bid package preparation.
San Dieguito Drive – Partially Unfunded ($900,000)
On April 15, 2024, the City Council authorized Proposition 218 Assessment Ballot Proceedings for the San Dieguito Drive Improvement District to fund the resident portion of the San Dieguito Improvement Project. The project includes roadway improvements, concrete rolled curbs, improved street width and travel-way for public safety vehicle access, and has a total estimated 8 June 3, 2024 Item 16
City Council Agenda Report
Fiscal Year 2023-24 Third Quarter and Fiscal Year 2024-25 Budget Update Report June 3, 2024
cost of $1.3 million (includes pre-construction/construction costs). If the measure passes via a 50% weighted vote of the ballots received, the City Council will have the ability to order the levying of the assessments, which is 30% of the total cost of the project. The approximate $900,000 remaining cost will be the City’s contribution to the project. This amount is currently unfunded until results of the ballot measure are received. However, staff has included an additional transfer of $900,000 to the Capital Reserve in FY 2024-25 to be used for this project if it moves forward.
Riverpath Del Mar – Phase III – Partially Unfunded ($1.45 million) This phase of the project extends the Riverpath from Grand Avenue Bridge to Crest Canyon. The project team is currently working on Coastal Development Permit requirements and National Environmental Protection Act (NEPA) approvals with a September 2024 target construction start date. The total cost of the project is estimated at $3.3 million, including the future construction phase cost estimate of $2.85 million. The construction has been partially funded with grants from the San Dieguito River Valley Conservancy and Federal Community Program Funding grant sponsored by Representative Mike Levin, totaling $1.4 million.
There is a remaining estimated $1.45 million project funding gap for this project, which staff has been actively trying to address by applying for additional County, State, and Federal grant funds over the last year. In March 2024, the City received an additional $35,000 in County funding, which will be used to offset the cost of pre-construction work that is underway. Four more State and Federal applications totaling between $1.3 and $1.45 million each.
Of the pending grants, two look particularly promising including one that is being submitted on the City’s behalf by the Wildlife Conservation Board to the State Department of Parks and Recreation and the other is being submitted by Congressman Mike Levin as part of the upcoming federal budget package for Congressional consideration between December 2024-March 2025. The timing for the City to receive either of these grant funds would be in 2025, with the federal funds (if approved) being anticipated for receipt in Summer/Fall 2025. As is described below, staff is recommending transferring additional funds to the Capital Reserve that could be potentially be used for this project if other sources of funding do not become available.
A more detailed update on the status of this project is provided as a separate item on the City Council agenda for this meeting.
CDM Bridge – Local Match – Partially Unfunded ($2.6 million) On May 6, 2024, the City Council was provided with the Camino del Mar Bridge Project Update.
Included in the May report was updated project costs totaling $72.5 million, of which Caltrans pays 88.53% and the City is required to provide 11.47% in local match funds. The City currently has $5.7 million in match funding available, leaving a funding gap of approximately $2.6 million.
Based on the project schedule, it is anticipated that these gap funds will be needed by FY 2027- 28, providing the City up to four (4) years to accumulate the additional match funds or find additional sources of funding. Included in the FY 2024-25 Budget Update is an additional transfer of $650,000 to the Capital Reserve Fund to cover one-fourth (1/4) of the anticipated funding gap, with the goal of contributing an equal amount over the remaining three years to ensure funds are available when needed.
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Fiscal Year 2023-24 Third Quarter and Fiscal Year 2024-25 Budget Update Report June 3, 2024
SPECIAL PROJECTS
Table F below includes a list of Special Projects that were included in the FY 2024-25 City Work Plan approved by the City Council in March 2024, identifying previously allocated funds and requests for additional funding totaling $52,500.
Table F: FY 2023-24 and FY 2024-25 Special Projects
PROJECT NAME
Current
Budget
FY 2023-24
Original
Budget
FY 2024-25
Additional
Request
FY 2024-25
Legal Fees for other Special Projects $- $20,000 $2,500 SCOUP Sand Replenishment Permit 71,240 - 40,000
Fairgrounds Housing Agreement 357,540 88,960 250,000*
Short Term Rental Ordinance 100,000 10,000 -
Update Community Plan Safety Element 43,500 - -
General Plan Update 5,000 - -
Affordable Housing Incentives 90,000 2,000 -
Implement Ordinance/LCPA (SB9) 1,500 - -
Objective Design Standards 106,000 - -
Housing State Law Alignment 29,000 - -
ADU Facilitation Measures 38,500 - -
6 th Cycle Housing Element 30,195 - -
HAP Expenditures 57,555 - -
TSVS Updates 120,000 155,000 -
Update Public Tree Policy 26,000 26,000 -
Shoreline/Living Levee* 70,000 - -
Implement Solar Access App - 5,000 -
Rezone North Bluff/ South Stratford - 310,000 ($310,000) Affordable Housing City-owned Property - - 50,000
Civic Center Outdoor Lighting - - 20,000
Totals $1,146,030 $616,960 $52,500
*Funded out of the Housing Reserve Fund
Sand Compatibility Opportunistic Use Program (SCOUP) Permit - $40,000 SCOUP approval will allow the City to accept beach quality sand more readily for beach nourishment when available. Staff is requesting an additional $40,000 to cover the current consultant contract and forthcoming work in FY 2024-25.
Fairgrounds Housing Strategy - $250,000
The City was previously awarded $1.5 million in State Housing Acceleration Program (HAP) grant funds, which are currently on hold and may be significantly reduced or eliminated completely as part of revised State budget pending approval in June 2024. A portion of these funds were identified for use to implement the City’s required due diligence activities as part of the Exclusive Negotiating Rights Agreement (ENRA) with the Fairgrounds. In order to meet the City’s obligations, staff is recommending a $250,000 allocation to the project in FY 2024-25 that will be paid with Housing Reserve funds and can be reimbursed if the HAP grant funds are received. 10 June 3, 2024 Item 16
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Fiscal Year 2023-24 Third Quarter and Fiscal Year 2024-25 Budget Update Report June 3, 2024
Rezone North Bluff/South Stratford – ($310,000)
The elimination of the previously allocated $310,000 for this project is being recommended since the City is no longer required to implement this Housing Element program following adoption of the Fairgrounds ENRA.
Affordable Housing City-owned Property - $50,000
Staff is recommending allocating $50,000 to initiate the process to pursue affordable housing on vacant City-owned properties at 10th Street and 28th Street as required by the City’s certified 6th Cycle Housing Element.
Civic Center Outdoor Lighting - $20,000
Included as a Tier 3 item of the City Work Plan is the design, permit, and installation of permanent outdoor lighting upgrades for the Civic Center Breezeway. This would include lighting in the north Town Hall eves, and the front plaza to support outdoor evening City activities and special events.
Included in the FY 2024-25 Budget Update is $20,000 for this project, which City staff will seek to recover with outside sources of funding.
IMPACTS TO GENERAL FUND RESERVES
Year-End Transfers
Based on the priority to fund capital projects that are anticipated to proceed in the upcoming fiscal years, staff is recommending transferring all additional FY 2023-24 funds, totaling $2.3 million, to the Capital Reserve Fund in FY 2024-25. This transfer would cover $900,000 for the San Dieguito Drive project, $650,000 for a quarter of the funding gap for the CDM Bridge project, and $750,000 that could be used for the Riverpath Del Mar project. The FY 2024-25 Original Budget already includes a $200,000 transfer to the Capital Reserve Fund with a projected reserve balance at June 30, 2025, of $850,000. If the additional transfer of $2.3 million is approved, the new Capital Reserve balance at June 30, 2025, would be $3.15 million.
Equipment Replacement Reserve
The Equipment Replacement Reserve was established to fund the replacement of City equipment and machinery, with sufficient reserves available to fund equipment replacement in the upcoming 5-10 years as a best practice. Recently staff reviewed City equipment with a value over $15,000 with an assessed value and remaining useful life identified for each. Based on current assets, which includes over 20 city vehicles, two fire engines, jet vacuum truck, loader, skid steer, and a backhoe, and the anticipated replacement schedule, the City’s current equipment replacement reserve balance goal should be approximately $2 million. The current Equipment Replacement Reserve balance of $678,460 represents approximately 34% (2.5 years of assets) of the total amount required to fund replacement of assets over the next 7 years. However, due to the City’s current capital needs, staff is not recommending any transfers beyond the $100,000 transfer included in the FY 2024-25 Original Budget at this time. Additional transfers may be considered based on the FY 2023-24 final financial results and the FY 2024-25 Mid-Year financial review.
Pension Reserve
Included in the FY 2024-25 Original Budget, is the transfer of $360,000 to the Pension Reserve.
Based on the revised Pension Reserve Policy to continue working toward the goal of reaching 100% funded status of the Governmental Fund portion of the unfunded liability (currently at $15.2 million) by June 30, 2032, the City would need to have approximately a $5.6 million balance by June 30, 2025. Not including the pension reserve funds held by the Water and Wastewater fund, 11 June 3, 2024 Item 16
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Fiscal Year 2023-24 Third Quarter and Fiscal Year 2024-25 Budget Update Report June 3, 2024
the reserve balance at June 30, 2025, is projected at $4.76 million. The reserve policy allows flexibility for the timeline to be extended when deemed necessary in order to not impact the City’s ability to fund other critical or important projects. Based on the priority to have sufficient funds in the Capital Reserve for critical capital projects that have a funding gap, staff is not recommending any additional transfer to the Pension Reserve at this time. Additional transfers may be recommended based on the FY 2023-24 final financial results and the FY 2024-25 Mid-Year financial review.
Finnell Plan/Capital Reserve
Included in the FY 2024-25 Original Budget, is the transfer of $200,000 to the Capital Reserve.
As part of the FY 2024-25 Budget Update, staff is recommending transferring an additional $2.3 million to this reserve, resulting in a projected reserve balance of $3.15 million at June 30, 2025.
As was mentioned above, there are currently three capital projects that have a funding gap. Staff is financially preparing to fund these projects with general funds, while other sources of funding are being sought in case these efforts are unsuccessful. The current reserve balance is sufficient to fund the following projects:
Table G: Capital Reserve Fund
Project Reserve
San Dieguito Drive $900,000
Riverpath Del Mar 750,000
CDM Bridge (1/4 gap) 650,000
Future CIP Projects 850,000
Total $3,150,000
If these projects do not proceed, are deferred until other funding is secured, or are eliminated from the Work Plan, the reserve funds can be allocated to the remaining funding gap for the CDM Bridge project or other future unfunded projects.
Based on the recommended transfers, the Finnell Plan has been met for FY 2024-25 by continuing to build adequate
for long-term capital projects. The Finnell Plan was intended to ensure sufficient funding for anticipated capital projects over a twenty-year period ending 2028. Staff recently met with the Capital Reserve Subcommittee of the Finance Committee and discussed a plan to update the 10- Year Capital Improvement Plan and determine the amount of funding necessary to ensure the Capital Reserve is sufficient to cover the City’s short and long-term capital needs. The 10-Year Capital Improvement Plan is underway, with results and a financing plan to be presented to the Finance Committee and City Council once complete.
Housing Reserve
The FY 2024-25 Original Budget, includes a transfer of $300,000 to the Housing Reserve with a projected ending reserve balance of $1.65 million at June 30, 2025. As explained above, until the revised State Budget is approved and more is known about whether the City will receive previously approved HAP grant funds, it is recommended that the expenditures to cover due diligence activities necessary for the Fairgrounds Housing project of $250,000 be paid out of the Housing Reserve Fund. The Housing Reserve will be reimbursed if the HAP grant funds are received.
12 June 3, 2024 Item 16
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Fiscal Year 2023-24 Third Quarter and Fiscal Year 2024-25 Budget Update Report June 3, 2024
General Fund Contingency
The FY 2024-25 Budget Update results in a 25.69% (94 days of operations) GFC, which is consistent with the Council identified FY 2019-20 goal to increase the City’s GFC by 1% annually until the GFC reached 25%. The City’s GFC has met this goal since the FY 2022-23 Budget Update. Previously, the City’s General Fund Contingency policy was to produce an annual budget that resulted in a General Fund Contingency between 10-20%, with any funds that exceeded the 20% contingency, being available for transfer to the Capital Reserve Fund for future capital improvement projects, upon City Council approval.
Finance Committee Feedback
Staff presented a similar report to the Finance Committee on May 21, 2024. Overall, the Committee expressed support for staff’s recommended budget adjustments and had minor suggestions related to reporting the funding status of the Equipment Replacement Fund. It should also be noted that a few minor changes were made to the proposed budget since the time of the Finance Committee presentation, including updating property tax projections based on valuation reports subsequently received from the County, reclassification of the Public Works Project Manager II, and compensation adjustments related to the Principal Engineer position. The net result of these changes decreased the General Fund Contingency by 0.23% from the previously reported 25.92% to 25.69%.
NEXT STEPS
Based on Council feedback, staff will incorporate any necessary changes and bring back a final FY 2024-25 Budget Update for Council consideration on June 17, 2024.
NEXUS TO CITY COUNCIL GOALS AND PRIORITIES:
This item is operational in nature and is not directly related to the City Council’s Goals and Priorities.
FISCAL IMPACT:
Council approval of the recommended action for this agenda item will result in amending the Fiscal Year 2023-24 Operating and Capital Budget as included in Exhibit A of Attachment A.
ENVIRONMENTAL IMPACT:
The proposed City Council action does not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because it will not have a potential to result in a direct or indirect physical change in the environment and is, therefore, not subject to CEQA. No further action under CEQA is required.
ATTACHMENTS
Attachment A – Resolution Implementing FY 2023-24 Third Quarter Budget Adjustments Exhibit A – FY2023-24 and 2024-25 Financial Summary Reports
13 June 3, 2024 Item 16
Attachment A
RESOLUTION NO. 2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL
MAR, CALIFORNIA, AMENDING THE FISCAL YEAR 2023-2024
OPERATING AND CAPITAL BUDGET
WHEREAS, on June 19, 2023, the City Council of the City of Del Mar passed Resolution 2023-21, adopting the Fiscal Years 2023-2024 and 2024-2025 Operating and Capital Budget; and
WHEREAS, a comprehensive third quarter review of expenditures and revenues through March 31, 2024 has been completed; and
WHEREAS, based on the results of the review, adjustments to the Fiscal Year 2023-2024 Operating and Capital Budget are needed to account for anticipated revenues through the end of the current fiscal year (Exhibit “A”); and WHEREAS, based on the position’s work assignments and needs of the City, City Council approved the reclassification of the Administrative Assistant position to a Management Analyst position in the Community Services Department on June 3, 2024; and
WHEREAS, based on the Public Works Department operational needs, the City Council approved the reclassification of the Project Manager II position to a Principal Engineer position in the Public Works Department on June 3, 2024.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Del Mar, California, that the above recitals are true and correct.
BE IT FURTHER RESOLVED that the Fiscal Year 2023-2024 Operating and Capital Budget is amended as shown in Exhibits “A” to the Resolution.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Del Mar, California, at a Regular Meeting held on the 3
rd day of June 2024.
________________________________
Dave Druker, Mayor
City of Del Mar
14 June 3, 2024 Item 16
Resolution No. 2024-XX
APPROVED AS TO FORM:
________________________________
Leslie E. Devaney, City Attorney
City of Del Mar
ATTEST AND CERTIFICATION:
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF DEL MAR
I, Sarah Krietor, Administrative Services Manager/City Clerk of the City of Del Mar, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 2024-XX, adopted by the City Council of the City of Del Mar, California, at a Regular Meeting held the 3
rd day of June 2024, by the following vote:
AYES:
NOES:
RECUSE:
ABSENT:
ABSTAIN:
________________________________
Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
15 June 3, 2024 Item 16
BEGINNING ENDING
BALANCE O & M CIP/SP BALANCE
JUL 1, 2024 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2025 ESTIMATE FY 2025 FY 2025 FY 2025 FY 2025 FY 2025 ESTIMATE CONTINGENCY 25.69% 6,202,792 22,235,410 (16,417,820) - 530,860 $ (7,714,120) 4,837,122 RESTRICTED:
SELF-INSURANCE 415,632 - (140,000) - 24,368 - 300,000
DESIGNATED:
ENCUMBRANCES - - - - - - -
COASTAL PARKING REVENUE - 81,900 (81,900) - - - -
SIDEWALK CAFÉ - 3,000 (3,000) - - - -
HOUSING RESERVE 1,600,000 - - - 300,000 (250,000) 1,650,000 PENSION RESERVE 4,400,000 - - - 360,000 - 4,760,000
LEAVE LIABILITY 100,000 - - - - - 100,000
EQUIPMENT REPLACEMENT 760,700 - (182,240) - 100,000 - 678,460 TOTAL GENERAL FUND 13,479,124 22,320,310 (16,824,960) - 1,315,228 (7,964,120) 12,325,582 4,381,039 3,500,000 - (6,720,500) - - 1,160,539
- 100,860 - - - (100,860) -
- 114,770 (887,450) - 772,680 - -
- 858,530 (1,430,360) - 571,830 - -
DESIGNATED
ENCUMBRANCES - - - - - - -
CAPITAL IMPROVEMENT PROJECTS - - - (81,000) 81,000 - -
OPEN SPACE ACQUISITION 86,388 - - - - - 86,388
TREE RESERVE 37,267 - - - - - 37,267
TOTAL OPEN SPACE FUND 123,655 858,530 (1,430,360) (81,000) 652,830 - 123,655 - 160,000 - - - (160,000) -
9,404 45,000 (61,250) - 13,897 - 7,051
140,762 60,000 (61,170) - - - 139,592
36,375 30,000 (40,000) - (26,375) - -
445,894 154,000 (118,890) - - - 481,004
8,872 46,000 (31,200) - - (20,000) 3,672
- 1,411,950 (2,339,450) 927,500 - -
ENCUMBRANCES -
RESERVE FOR CAPITAL 650,000 2,500,000 3,150,000
DEBT SERVICE - - (904,290) - 904,290 - -
TOTAL CAPITAL IMPROVEMENT FUND 650,000 1,411,950 (904,290) (2,339,450) 4,331,790 - 3,150,000 - - - (669,460) 669,460 - -
3,190 147,000 - (147,000) - - 3,190
31,628 - - - - - 31,628
322,574 290,000 (304,000) - - - 308,574
CAPITAL IMPROVEMENT FUND
SPECIAL PROJECT FUND
TRANSNET FUND
RTCIP
WORKERS' COMPENSATION FUND
PEG FEE FUND
GENERAL FUND
MEASURE Q
ROAD MAINTENANCE REHABILITATION ACCT
GAS TAX FUND
OPEN SPACE FUND
SUPPLEMENTAL LAW ENFORCEMENT FUND
REGIONAL COMMUNICATIONS FUND
GRANTS FUND
HOUSING FUND
AB 939 FUND
CITY OF DEL MAR
RESERVE SUMMARY REPORT
FISCAL YEAR 2024-2025
TRANSFERS
16 June 3, 2024 Item 16
BEGINNING ENDING
BALANCE O & M CIP/SP BALANCE
JUL 1, 2024 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2025 ESTIMATE FY 2025 FY 2025 FY 2025 FY 2025 FY 2025 ESTIMATE
CITY OF DEL MAR
RESERVE SUMMARY REPORT
FISCAL YEAR 2024-2025
TRANSFERS
NET POSITION 1,254,559 4,469,000 (4,291,470) - - (653,990) 778,099 RESTRICTED:
CONTRIBUTED CAPITAL 4,028,272 - - - - - 4,028,272
DESIGNATED
ENCUMBRANCES - - - - - - -
SELF-INSURANCE 50,000 - - - - - 50,000
RATE STABILIZATION 200,000 - - - - - 200,000
CAPTIAL REPLACEMENT 350,000 - - (622,000) 622,000 - 350,000 NET PENSION LIABILITY (1,832,206) - - - - - (1,832,206) PENSION RESERVE 700,000 - - - - - 700,000
OPERATING RESERVE 500,000 - - - - - 500,000
EQUIPMENT REPLACEMENT 200,000 - (31,990) - 31,990 - 200,000 UTILITY PLANT IN SERVICE 6,889,127 - (385,000) - - - 6,504,127 TOTAL WATER FUND 12,339,752 4,469,000 (4,708,460) (622,000) 653,990 (653,990) 11,478,292 NET POSITION - 635,000 (785,470) 150,470 -
-
DESIGNATED -
UTILITY PLANT IN SERVICE 141,348 141,348
ENCUMBRANCES - - - - -
CAPITAL REPLACEMENT - (365,000) 365,000 -
TOTAL CLEAN WATER FUND 141,348 635,000 (785,470) (365,000) 515,470 - 141,348 NET POSITION 511,935 4,092,000 (3,965,970) - 300,000 (456,500) 481,465 -
RESTRICTED
IBANK RESERVE 228,828 - - - - - 228,828
CONTRIBUTED CAPITAL 650,814 - - - - - 650,814
LOAN RESERVE-STATE REVOLVING 332,979 - - - - - 332,979
DESIGNATED
ENCUMBRANCES - - - - - - -
SELF-INSURANCE 50,000 - - - - - 50,000
CAPITAL REPLACEMENT 350,000 - - (425,000) 425,000 - 350,000 NET PENSION LIABILITY (1,841,900) - - - - - (1,841,900) PENSION RESERVE 700,000 - - - - (300,000) 400,000
OPERATING RESERVE 475,000 - - - - - 475,000
EQUIPMENT REPLACEMENT 300,000 - (31,500) - 31,500 - 300,000 UTILITY PLANT IN SERVICE 7,797,298 - (700,000) - - - 7,097,298 RATE STABILIZATION 200,000 - - - - - 200,000
TOTAL WASTEWATER FUND 9,754,954 4,092,000 (4,697,470) (425,000) 756,500 (756,500) 8,724,484 TOTAL ENTERPRISE FUNDS 22,236,054 9,196,000 (10,191,400) (1,412,000) 1,925,960 (1,410,490) 20,344,124 TOTAL - ALL FUNDS 41,868,571 38,434,420 (30,854,970) (11,369,410) 9,655,470 (9,655,470) 38,078,611
CLEANWATER FUND
WASTEWATER FUND
WATER FUND
17 June 3, 2024 Item 16
CURRENT BUDGET AMENDED PROJECTED ADOPTED BUDGET PROPOSED ACTUAL ACTUAL ADOPTED ADJUSTMENT BUDGET REVENUE (6/9/2023) ADJUSTMENT BUDGET SOURCE OF FUNDS FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 FY 2023-24 FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25
GENERAL FUND
TAXES
PROPERTY TAX 6,615,450 7,241,627 7,500,000 150,000 7,650,000 7,650,000 7,463,040 569,460 8,032,500 VLF IN LIEU OF PROPERTY TAX 699,411 759,841 790,190 - 790,190 806,970 821,800 - 821,800 SALES AND USE TAX 2,068,716 2,306,262 2,100,000 - 2,100,000 2,100,000 2,300,000 - 2,300,000 TRANSIENT OCCUPANCY TAX 3,419,866 3,816,392 3,800,000 - 3,800,000 3,814,000 3,800,000 20,000 3,820,000 FRANCHISE TAX 404,226 442,409 300,000 120,000 420,000 429,860 300,000 130,000 430,000 BUSINESS LICENSE TAX 282,524 276,466 200,000 145,000 345,000 345,000 210,000 140,000 350,000 REAL PROPERTY TRANSFER TAX 274,365 134,893 140,000 - 140,000 150,000 140,000 - 140,000 TOTAL 13,764,558 14,977,890 14,830,190 415,000 15,245,190 15,295,830 15,034,840 859,460 15,894,300
LICENSES & PERMITS
LICENSES & PERMITS 352 2,335 500 - 500 2,670 500 - 500
JUNIOR LIFEGUARD 88,689 96,990 95,000 - 95,000 95,000 95,000 - 95,000 PARKING PERMITS 31,333 30,060 25,000 - 25,000 25,000 25,000 - 25,000 TOTAL 120,374 129,385 120,500 - 120,500 122,670 120,500 - 120,500
FINES & FORFEITURES
MOVING VIOLATIONS/VEHICLE CODE FINES 42,640 58,170 55,000 - 55,000 69,000 55,000 - 55,000 PENALTIES 23,939 5,712 12,000 - 12,000 14,000 12,000 - 12,000 PARKING VIOLATIONS 903,237 1,368,108 1,200,000 100,000 1,300,000 1,300,000 950,000 300,000 1,250,000 ADMINISTRATIVE CITATIONS 43,595 88,167 45,000 - 45,000 48,000 45,000 - 45,000 RED LIGHT ENFORCEMENT 52,859 73,937 65,000 - 65,000 75,000 65,000 - 65,000 TOTAL 1,066,270 1,594,094 1,377,000 100,000 1,477,000 1,506,000 1,127,000 300,000 1,427,000
REVENUE FROM USE OF ASSETS
INV EARN-GENERAL (183,213) 199,381 270,000 150,000 420,000 415,000 270,000 130,000 400,000 SIDEWALK CAFÉ USER FEE 6,339 1,469 5,000 - 5,000 10,560 3,000 - 3,000 RENTAL INCOME 199,944 230,372 200,000 - 200,000 235,000 200,000 - 200,000 PARKING METER INCOME 1,513,143 1,268,930 1,400,000 - 1,400,000 1,400,000 1,400,000 - 1,400,000 TOTAL 1,512,898 1,700,152 1,875,000 150,000 2,025,000 2,060,560 1,873,000 130,000 2,003,000
REVENUE FROM OTHER AGENCIES
MOTOR VEHICLE LICENSE FEE 4,919 4,040 4,000 - 4,000 4,870 4,000 - 4,000 PUBLIC SAFETY AUGMENTATION FUND 102,840 107,147 100,000 - 100,000 105,000 100,000 - 100,000 HOMEOWNER EXEMPT 35,718 35,835 35,000 - 35,000 36,500 35,000 - 35,000 FEDERAL/STATE/LOCAL GRANTS - 5,000 20,500 - 20,500 24,000 162,200 - 162,200 STATE MANDATED COST REIMB - - 1,500 - 1,500 130 1,500 - 1,500 CORONAVIRUS RELIEF FUNDS - 870,883 - - - - - 162,310 162,310 OFF-TRACK PARIMUTUEL 7,380 9,009 8,000 - 8,000 7,000 8,000 - 8,000 SOLID WASTE 27,761 10,996 11,000 - 11,000 12,620 11,000 - 11,000 TOTAL 178,618 1,042,910 180,000 - 180,000 190,120 321,700 162,310 484,010
CITY OF DEL MAR
FISCAL YEAR 2023-2024 AND 2024-2025
OPERATING AND CAPITAL BUDGET
REVENUE SUMMARIES
18 June 3, 2024 Item 16
CURRENT BUDGET AMENDED PROJECTED ADOPTED BUDGET PROPOSED ACTUAL ACTUAL ADOPTED ADJUSTMENT BUDGET REVENUE (6/9/2023) ADJUSTMENT BUDGET SOURCE OF FUNDS FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 FY 2023-24 FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25
CITY OF DEL MAR
FISCAL YEAR 2023-2024 AND 2024-2025
OPERATING AND CAPITAL BUDGET
REVENUE SUMMARIES
CHARGES - PLANNING SERVICES
PLANNING SERVICES 541,623 625,509 520,000 520,000 520,000 520,000 - 520,000 ENGINEERING SERVICES 151,057 181,888 120,000 80,000 200,000 200,000 120,000 80,000 200,000 BUILDING SERVICES 435,382 606,602 442,000 100,000 542,000 550,000 442,000 58,000 500,000 TOTAL 1,128,062 1,413,999 1,082,000 180,000 1,262,000 1,270,000 1,082,000 138,000 1,220,000
OTHER REVENUE SOURCES
PARKING IN-LIEU FEE 8,510 - 5,000 - 5,000 10,500 1,500 - 1,500 ADMINISTRATIVE CHARGE 910,344 910,344 965,790 - 965,790 965,790 990,000 - 990,000 CONTRIBUTIONS 43,719 3,660 17,937 - 17,937 17,900 - - - ADMINISTRATIVE CHARGE-MEASURE Q 68,951 59,875 150,000 - 150,000 100,000 150,000 - 150,000 EXPENDITURE REIMBURSEMENT 25,305 3,811 163,070 - 163,070 160,000 5,000 - 5,000 MISCELLANEOUS 247,062 163,654 25,000 - 25,000 34,570 25,000 - 25,000 TOTAL 1,303,891 1,141,344 1,326,797 - 1,326,797 1,288,760 1,171,500 - 1,171,500 TOTAL GENERAL FUND 19,074,671 21,999,774 20,791,487 845,000 21,636,487 21,733,940 20,730,540 1,589,770 22,320,310 MEASURE Q FUND 3,297,998 3,401,946 3,200,000 100,000 3,300,000 3,300,000 3,500,000 - 3,500,000 ROAD MAINTENANCE REHAB ACCOUNT 81,628 90,384 97,400 - 97,400 94,350 90,000 10,860 100,860 GAS TAX FUND 104,286 105,890 118,310 - 118,310 113,010 120,670 (5,900) 114,770
OPEN SPACE FUND
TAXES 27,412 34,115 12,000 - 12,000 15,000 12,000 - 12,000 LICENSE & PERMITS 278,250 390,339 360,000 - 360,000 360,000 360,000 - 360,000 SURF CAMP PERMITS 80,311 - 80,000 - 80,000 65,000 180,000 (100,000) 80,000 OFF-TRACK PARIMUTUEL 4,227 4,334 5,000 - 5,000 5,000 5,000 - 5,000 LOCAL GRANTS 35,000 - 680,000 - 680,000 180,680 - - -
CONTRIBUTIONS 40,000 102,856 862,000 - 862,000 34,000 137,000 - 137,000 TREE MITIGATION 1,500 - - - - 3,750 - - -
MISCELLANEOUS 49,769 8,021 42,860 - 42,860 5,370 42,860 221,670 264,530 TOTAL OPEN SPACE FUND 516,469 539,665 2,041,860 - 2,041,860 668,800 736,860 121,670 858,530 SUPPLEMENTAL LAW FUND 157,926 166,847 160,000 - 160,000 195,000 160,000 - 160,000 REGIONAL COMMUNICATION 44,061 43,990 45,000 - 45,000 45,000 45,000 - 45,000 GRANTS FUND 51,930 71,515 70,000 - 70,000 84,000 60,000 - 60,000 HOUSING FUND (3,489) 2,546 30,000 - 30,000 32,000 - 30,000 30,000 AB 939 193,546 159,145 154,000 - 154,000 160,000 154,000 - 154,000 PEG FEE FUND 42,868 43,647 46,000 - 46,000 46,000 46,000 - 46,000 19 June 3, 2024 Item 16
CURRENT BUDGET AMENDED PROJECTED ADOPTED BUDGET PROPOSED ACTUAL ACTUAL ADOPTED ADJUSTMENT BUDGET REVENUE (6/9/2023) ADJUSTMENT BUDGET SOURCE OF FUNDS FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 FY 2023-24 FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25
CITY OF DEL MAR
FISCAL YEAR 2023-2024 AND 2024-2025
OPERATING AND CAPITAL BUDGET
REVENUE SUMMARIES
CAPITAL IMPROVEMENT FUND
FEDERAL GRANTS 168,052 684,949 2,503,250 2,503,250 2,503,250 1,250,000 1,250,000 LOCAL GRANTS 43,716 - 129,560 129,560 129,560 161,950 161,950 MISCELLANEOUS (32,712) 63,564 - - 118,461 - -
TOTAL CAPITAL IMPROVEMENT FUND 179,056 748,513 2,632,810 - 2,632,810 2,751,271 1,411,950 - 1,411,950 TRANSNET FUND 152,346 133,698 391,000 - 391,000 527,000 147,000 - 147,000 RTCIP FUND 2,479 23,784 - - - 3,500 - - -
SPECIAL PROJECTS FUND 65,000 225,000 - - - - - - -
TOTAL GENERAL GOVERNMENTAL FUNDS 23,960,775 27,756,344 29,777,867 945,000 30,722,867 29,753,871 27,202,020 1,746,400 28,948,420
WORKERS' COMPENSATION FUND
SERVICE CHARGES 249,995 290,088 280,000 - 280,000 290,000 280,000 - 280,000 INVESTMENT EARNINGS (14,453) - 10,000 - 10,000 20,000 10,000 - 10,000 TOTAL WORKERS' COMPENSATION 235,542 290,088 290,000 - 290,000 310,000 290,000 - 290,000
WATER UTILITY FUND
PENALTIES 12,855 - 15,000 - 15,000 15,000 15,000 - 15,000 WATER SALES 2,393,663 2,250,941 2,375,000 - 2,375,000 2,300,000 2,375,000 - 2,375,000 READY TO SERVE CHARGE 1,747,817 1,860,332 1,900,000 - 1,900,000 1,935,000 1,800,000 150,000 1,950,000 WATER CONNECTION FEES 43,666 57,667 37,000 - 37,000 38,000 37,000 - 37,000 BACKFLOW DEVICE FEES 18,778 - 17,000 - 17,000 19,000 17,000 - 17,000 MISCELLANEOUS 94,807 101,824 92,000 - 92,000 125,000 92,000 (17,000) 75,000 TOTAL OPERATING REVENUE 4,311,586 4,270,764 4,436,000 - 4,436,000 4,432,000 4,336,000 133,000 4,469,000
CLEAN WATER PROGRAM
PENALTIES 2,217 - 2,000 - 2,000 2,200 2,000 - 2,000
MISCELLANEOUS (1,990) 5,266 3,000 - 3,000 8,000 3,000 - 3,000 SERVICE CHARGE 632,149 623,696 665,000 - 665,000 630,000 630,000 - 630,000 TOTAL CLEAN WATER PROGRAM 632,376 628,962 670,000 - 670,000 640,200 635,000 - 635,000
WASTEWATER FUND
PENALTIES 11,787 - 17,000 - 17,000 15,000 17,000 - 17,000 SERVICE CHARGES 1,767,441 1,860,666 1,970,000 - 1,970,000 1,950,000 1,840,000 100,000 1,940,000 USAGE CHARGES 2,008,043 1,923,924 2,000,000 - 2,000,000 1,960,000 1,920,000 80,000 2,000,000 SEWER INCLUSION FEES 90,210 67,657 75,000 - 75,000 75,000 75,000 - 75,000 MISCELLANEOUS (51,935) 56,127 60,000 - 60,000 110,000 60,000 - 60,000 TOTAL WASTEWATER FUND 3,825,546 3,908,374 4,122,000 - 4,122,000 4,110,000 3,912,000 180,000 4,092,000 TOTAL ENTERPRISE FUNDS 8,769,508 8,808,100 9,228,000 - 9,228,000 9,182,200 8,883,000 313,000 9,196,000 TOTAL ALL FUNDS 32,965,825 36,854,532 39,295,867 945,000 40,240,867 39,246,071 36,375,020 2,059,400 38,434,420 20 June 3, 2024 Item 16
CURRENT BUDGET AMENDED PROJECTED ADOPTED BUDGET PROPOSED ACTUAL ACTUAL ADOPTED ADJUSTMENT BUDGET EXP (6/19/23) ADJUSTMENT BUDGET DEPARTMENT FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 FY 2023-24 FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25
GENERAL FUND
GENERAL GOVERNMENT
CITY COUNCIL 22,010 23,400 41,080 - 41,080 43,280 32,780 2,500 35,280 LEGAL SERVICES 432,042 625,181 450,000 - 450,000 675,000 344,400 161,600 506,000 CITY MANAGER 850,488 714,344 881,400 - 881,400 872,750 933,790 (11,700) 922,090 HUMAN RESOURCES 168,257 226,829 230,080 - 230,080 261,050 235,850 13,740 249,590 CITY CLERK 247,843 337,212 300,890 - 300,890 355,500 335,680 29,060 364,740 INFORMATION SYSTEMS 449,278 504,087 551,240 - 551,240 542,590 532,460 12,500 544,960 FINANCE SERVICES 781,332 736,709 802,020 - 802,020 772,000 811,600 (1,840) 809,760 RISK MANAGEMENT 286,591 280,408 352,150 - 352,150 345,000 376,820 104,530 481,350 PLANNING SERVICES 1,124,971 1,196,048 1,635,760 - 1,635,760 1,457,040 1,721,990 154,700 1,876,690 CODE ENFORCEMENT 140,177 148,242 149,247 - 149,247 154,490 148,690 860 149,550 BUILDING SERVICES 349,196 485,477 357,100 - 357,100 420,800 357,100 46,400 403,500 TOTAL 4,852,185 5,277,937 5,750,967 - 5,750,967 5,899,500 5,831,160 512,350 6,343,510
PUBLIC SAFETY
LAW ENFORCEMENT 2,635,661 2,687,591 2,862,770 - 2,862,770 2,751,840 2,962,340 - 2,962,340 LIFEGUARD SERVICES 1,267,016 1,393,458 1,479,692 - 1,479,692 1,478,400 1,527,090 20,870 1,547,960 PARKING ENFORCEMENT 826,516 1,084,591 1,149,483 - 1,149,483 1,111,150 1,140,430 49,090 1,189,520 FIRE PROTECTION 2,288,956 2,442,988 2,818,212 - 2,818,212 2,769,760 2,669,060 225,270 2,894,330 HAZARDOUS WASTE MANAGEMENT 17,629 17,632 20,250 - 20,250 21,080 20,250 2,710 22,960 SOLID WASTE 4,647 3,508 5,000 - 5,000 3,000 5,000 - 5,000 EMERGENCY PREPAREDNESS 1,314 2,884 5,000 - 5,000 4,450 5,000 750 5,750 TOTAL 7,041,738 7,632,652 8,340,407 - 8,340,407 8,139,680 8,329,170 298,690 8,627,860
PUBLIC WORKS
ENGINEERING SERVICES 145,511 137,256 275,390 - 275,390 275,000 263,750 - 263,750 STORM WATER 134,225 154,487 205,960 - 205,960 209,330 185,790 19,960 205,750 FACILITIES 184,408 237,242 368,000 - 368,000 374,000 347,340 11,940 359,280 TOTAL 464,144 528,985 849,350 - 849,350 858,330 796,880 31,900 828,780
NON-DEPARTMENTAL
COMMUNITY SUPPORT 390,627 415,129 414,910 - 414,910 415,500 415,010 12,500 427,510 TV STUDIO 82,855 97,575 115,850 - 115,850 114,120 119,420 - 119,420 CITY MEMBERSHIPS 90,754 93,740 104,310 - 104,310 102,300 109,890 - 109,890 CITY HALL - GENERAL 129,646 157,091 183,630 - 183,630 178,900 183,630 2,120 185,750 TOTAL 693,881 763,535 818,700 - 818,700 810,820 827,950 14,620 842,570
TOTAL GENERAL FUND BEFORE
EQUIPMENT REPLACEMENT 13,051,949 14,203,109 15,759,424 - 15,759,424 15,708,330 15,785,160 857,560 16,642,720 EQUIPMENT REPLACEMENT 987,427 65,687 324,700 - 324,700 324,700 28,400 153,840 182,240
TOTAL GENERAL FUND INCLUDING
EQUIPMENT REPLACEMENT 13,117,636 15,190,536 16,084,124 - 16,084,124 16,033,030 15,813,560 1,011,400 16,824,960 MEASURE Q FUND 907,051 1,325,555 6,688,860 - 6,688,860 6,688,860 6,720,500 - 6,720,500
ROAD MAINTENANCE REHAB ACCOUNT - - - - - - - - -
CITY OF DEL MAR
FISCAL YEAR 2023-2024 AND 2024-2025
OPERATING AND CAPITAL BUDGET
EXPENDITURE SUMMARIES
21 June 3, 2024 Item 16
CURRENT BUDGET AMENDED PROJECTED ADOPTED BUDGET PROPOSED ACTUAL ACTUAL ADOPTED ADJUSTMENT BUDGET EXP (6/19/23) ADJUSTMENT BUDGET DEPARTMENT FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 FY 2023-24 FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25
CITY OF DEL MAR
FISCAL YEAR 2023-2024 AND 2024-2025
OPERATING AND CAPITAL BUDGET
EXPENDITURE SUMMARIES
GAS TAX FUND
STREET MAINTENANCE 182,129 276,033 389,515 - 389,515 333,740 360,790 21,630 382,420 STREET LIGHTS/SIGNS 125,632 161,080 186,390 - 186,390 203,450 185,710 13,140 198,850 STREET LANDSCAPING 278,477 272,320 354,700 - 354,700 372,350 305,280 900 306,180 TOTAL GAX TAX FUND 586,239 709,433 930,605 - 930,605 909,540 851,780 35,670 887,450
OPEN SPACE FUND
POWERHOUSE OPERATIONS 371,958 379,591 495,453 - 495,453 492,370 481,590 3,440 485,030 BEACH MAINTENANCE 337,976 363,402 446,980 - 446,980 437,340 450,680 940 451,620 PARK MAINTENANCE 307,011 309,117 533,200 - 533,200 534,890 484,410 9,300 493,710 TOTAL OPEN SPACE FUND 1,016,944 1,052,110 1,475,633 - 1,475,633 1,464,600 1,416,680 13,680 1,430,360 REGIONAL COMMUNICATION FUND 61,607 40,960 61,250 - 61,250 61,250 61,250 - 61,250 GRANTS FUND 37,917 69,752 79,670 - 79,670 72,560 61,170 - 61,170 HOUSING FUND 95,600 101,143 45,690 - 45,690 45,690 40,000 - 40,000 AB 939 150,398 35,989 93,672 - 93,672 89,700 79,890 39,000 118,890 PEG FEE FUND 10,427 18,510 10,700 - 10,700 10,700 10,700 20,500 31,200 TOTAL GENERAL O&M FUNDS 15,983,818 18,543,988 25,470,204 - 25,470,204 25,375,930 25,055,530 1,120,250 26,175,780
CAPITAL IMPROVEMENT FUNDS
OPEN SPACE CIP 137,311 584,768 1,743,595 - 1,743,595 1,743,595 81,000 - 81,000 GENERAL FUND CIP 763,030 909,191 4,545,787 - 4,545,787 4,545,787 2,179,450 160,000 2,339,450 DEBT SERVICE-CITY HALL 905,661 904,283 905,670 - 905,670 905,670 904,290 - 904,290 TRANSNET II CIP 152,680 133,264 527,000 - 527,000 527,000 147,000 - 147,000
RTCIP FUND - - - - - - - - -
TOTAL CAPITAL IMPROVEMENT FUNDS 1,958,682 2,531,506 7,722,052 - 7,722,052 7,722,052 3,311,740 160,000 3,471,740 SPECIAL PROJECT FUND 368,344 452,662 1,234,180 - 1,234,180 1,214,180 616,960 52,500 669,460 TOTAL GENERAL GOVERNMENTAL FUNDS 18,310,845 21,528,156 34,426,436 - 34,426,436 34,312,162 28,984,230 1,332,750 30,316,980 WORKERS' COMPENSATION FUND 228,848 380,724 276,150 - 276,150 265,700 283,000 21,000 304,000 22 June 3, 2024 Item 16
CURRENT BUDGET AMENDED PROJECTED ADOPTED BUDGET PROPOSED ACTUAL ACTUAL ADOPTED ADJUSTMENT BUDGET EXP (6/19/23) ADJUSTMENT BUDGET DEPARTMENT FY 2021-22 FY 2022-23 FY 2023-24 FY 2023-24 FY 2023-24 FY 2023-24 FY 2024-25 FY 2024-25 FY 2024-25
CITY OF DEL MAR
FISCAL YEAR 2023-2024 AND 2024-2025
OPERATING AND CAPITAL BUDGET
EXPENDITURE SUMMARIES
WATER FUND
GENERAL ADMINISTRATION 1,772,989 1,653,945 2,159,426 - 2,159,426 2,130,490 2,110,370 47,420 2,157,790 RISK MANAGEMENT 153,582 132,948 171,070 - 171,070 152,900 187,540 - 187,540 RAW WATER SUPPLY 1,647,167 1,677,581 1,811,460 - 1,811,460 1,801,230 1,902,040 - 1,902,040 TREATMENT/DELIVERY 445,740 441,012 436,030 - 436,030 450,000 461,090 - 461,090 TOTAL WATER FUND O&M 4,019,477 3,905,486 4,577,986 - 4,577,986 4,534,620 4,661,040 47,420 4,708,460 WATER CAP IMPROVEMENT 855,919 1,367 1,013,777 - 1,013,777 1,013,777 617,000 5,000 622,000 TOTAL WATER FUND 4,875,397 3,906,853 5,591,763 - 5,591,763 5,548,397 5,278,040 52,420 5,330,460
CLEAN WATER FUND
PLANNING 59,593 66,315 63,720 - 63,720 91,420 71,100 360 71,460 CODE ENFORCEMENT 35,490 37,415 38,480 - 38,480 37,980 39,440 120 39,560 CLEAN WATER MANAGEMENT 266,563 281,209 314,750 - 314,750 301,340 327,930 16,100 344,030 PUBLIC WORKS 211,756 275,141 333,000 - 333,000 320,950 327,590 2,830 330,420 TOTAL CLEAN WATER O & M 573,402 660,080 749,950 - 749,950 751,690 766,060 19,410 785,470 CLEAN WATER CAP IMPROVEMENT 92,114 3,462 462,385 - 462,385 462,385 365,000 - 365,000 TOTAL CLEAN WATER FUND 665,517 663,542 1,212,335 - 1,212,335 1,214,075 1,131,060 19,410 1,150,470
WASTEWATER FUND
RISK MANAGEMENT 138,316 131,867 180,070 - 180,070 160,300 196,540 - 196,540 WASTEWATER TRANSPORTATION 16,540 102,276 133,750 - 133,750 132,780 139,740 - 139,740 WASTEWATER TREATMENT 747,594 909,145 983,880 - 983,880 964,950 1,039,550 - 1,039,550 DEBT SERVICE 564,764 150,176 569,390 - 569,390 563,780 568,850 - 568,850 WASTEWATER PROGRAM 2,189,027 2,109,626 2,674,101 - 2,674,101 2,675,250 2,690,560 62,230 2,752,790 TOTAL WASTEWATER FUND O&M 3,656,240 3,403,090 4,541,191 - 4,541,191 4,497,060 4,635,240 62,230 4,697,470 WASTEWATER CAPITAL IMPROVEMENT 317,270 - 629,902 - 629,902 629,902 425,000 - 425,000 TOTAL WASTEWATER FUND 3,973,510 3,403,090 5,171,093 - 5,171,093 5,126,962 5,060,240 62,230 5,122,470 TOTAL ENTERPRISE FUNDS 9,514,423 7,973,485 11,975,191 - 11,975,191 11,889,434 11,469,340 134,060 11,603,400 TOTAL EXPENDITURES 28,054,116 29,882,365 46,677,777 - 46,677,777 46,467,296 40,736,570 1,487,810 42,224,380 23 June 3, 2024 Item 16
City of Del Mar
Council Liaison Report
TO: Honorable Mayor and City Council Members
FROM: Dwight Worden, Councilmember
DATE: June 3, 2024
Finance Committee
The Finance Committee met on May 21, 2024. Finance Manager Monica Molina presented 3rd quarter adjustments and the Committee discussed developing a long-term plan for meeting the spirit of the Finnell Plan.
22nd DAA – Community Relations Committee
Met May 21, 2024:
• Update on the Fair
• Kaboo still in flux—likely not to happen in 2024
• Discussion of living levee, RHNA issues, Rail NOP
League of CA Cities – Coastal Cities Group
Ongoing meetings addressing:
• Coastal Bill updates
• OPC new SLR Guidance
• Coastal Commission update to SLR Guidance
• 1/4ly meeting heard reports from San Clemente and Santa Cruz on their coastal erosion issues
1 June 3, 2024 Item XII-A,F; XIII-E