Agenda, regular meeting, second session — Del Mar City Council, August 26, 2024 (part 3 of 3)

Enforcement Special Revenue Fund is used to account for grant revenue received by the City from the State of California for supplemental law enforcement expenditures.

Staff Response: This section of the CAFR must disclose any fund that exceeded its approved appropriation. The Supplemental Law Enforcement Special Revenue Fund was used to pay for the Park Ranger program, which wasn’t eliminated until the end of FY 2019-2020. The budget overage was a result of the Park Ranger’s resignation, and an unanticipated leave payout. Please note that although these types of payouts are recorded in their corresponding fund, the Leave Liability Reserve Fund is used to cover costs associated with leave payouts.
j. Page 151: What is ”district” tax? "District tax" is also referenced in the chart on page 160.

Staff Response: The District tax referenced on page 151 refers to Measure Q funds, which is the legal name for this type of collected tax. The chart on page 160 refers to the City of Mar Direct tax, which represents the percentage of property tax that is allocated to the City of Del Mar, and paid by property owners. All other mention of “District” on this chart refers to the School District and any other Special Districts, which are not funds allocated to the City of Del Mar. k. Page 177: Does the 2300 labor force include fairgrounds employees? Seems not, but it doesn’t say.

Staff Response: The total labor force data included on this page is provided by the State of California, Employment Development Department, and it is the City’s understanding that this does not include employment data for Fairgrounds.
l. Page 178: Can this be explained? I'm not sure what it is saying. I think it addresses how part time/seasonal employees are counted, and may include fairgrounds? Since this is a hot topic it should be clear what this says, who prepared it, and what data are used.

Staff Response: Page 178 describes how the labor force data is calculated by the State of California. For smaller cities, like Del Mar, the ratios are calculated from census data. It also indicates that data is not seasonally adjusted, and does not represent the current economic condition of the City. Without doing Attachment F 138 August 26, 2024 Item 13

CITY STAFF RESPONSES TO CITY COUNCILMEMBER QUESTIONS
REGARDING February 1, 2021 CITY COUNCIL AGENDA
Dated 2/1/21 1:15PM
8 an actual survey, or paying a firm that will do the survey for the City, the State of California data is the best available, and used by many cities to complete the Statistical Section of the CAFR.

Attachment F 139 August 26, 2024 Item 13
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3/25/24
No. 36190
Exp. 6/30/24 REGISTERED PROFESSIONAL ENGINEER STATE OF CAL I FORNIA RANDY R. BRO N C I V I L W TEL. 760/436-8500 FAX 760/436-8603

SOWARDS & BROWN ENGINEERING
2187 NEWCASTLE AVENUE SUITE 103
CARDIFF BY THE SEA, CA., 92007

CONSULTING ENGINEERS
3/25/24 6 9 123456789
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Attachment G 140 August 26, 2024 Item 13
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TEL. 760/436-8500 FAX 760/436-8603

SOWARDS & BROWN ENGINEERING
2187 NEWCASTLE AVENUE SUITE 103
CARDIFF BY THE SEA, CA., 92007

CONSULTING ENGINEERS
3/25/24
No. 36190
Exp. 6/30/24

REGISTERED PROFESSIONAL ENGIN
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STATE OF CAL I FORNIA
RANDY R. BRO
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Attachment G 141 August 26, 2024 Item 13
M A P N O 1 5 9 2 M A P N O 1 3 4 3
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No. 36190
Exp. 6/30/24

REGISTERED PROFESSIONAL ENGIN
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STATE OF CAL I FORNIA
RANDY R. BRO
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SOWARDS & BROWN ENGINEERING
2187 NEWCASTLE AVENUE SUITE 103
CARDIFF BY THE SEA, CA., 92007

CONSULTING ENGINEERS
3/25/24
Attachment G 142 August 26, 2024 Item 13
N
TEL. 760/436-8500 FAX 760/436-8603

SOWARDS & BROWN ENGINEERING
2187 NEWCASTLE AVENUE SUITE 103
CARDIFF BY THE SEA, CA., 92007

CONSULTING ENGINEERS
3/25/24
No. 36190
Exp. 6/30/24

REGISTERED PROFESSIONAL ENGIN
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STATE OF CAL I FORNIA
RANDY R. BRO
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C I V I L
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CERT OF COMPL. PAR NO 1
Attachment G 143 August 26, 2024 Item 13
JOB NO. 18-030 3/25/24 TEL. 760/436-8500 FAX 760/436-8603 SOWARDS & BROWN ENGINEERING 2187 NEWCASTLE AVENUE SUITE 103 CARDIFF BY THE SEA, CA., 92007 CONSULTING ENGINEERS N No. 36190 Exp. 6/30/24

REGISTERED
PROFES

IONAL ENGINEER

STATE OF

CAL I FORNIA
RANDY
R. BRO N

C I V I L
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Attachment G
144 August 26, 2024 Item 13
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:

TO: Honorable Mayor and City Council Members
FROM: Jennifer Gavin, Associate Planner
Karen Brindley, Planning and Community Development Director Via Ashley Jones, City Manager
DATE: August 26, 2024
SUBJECT: Encroachment Permit EP24-075 – Request to Retain the Existing Encroachment of a Detached Residential Structure into a City Alley at 1329 Stratford Court
Applicant: Alexander Hertzberg
REQUESTED ACTION/RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution (Attachment A) conditionally approving Encroachment Permit (EP) 24-075.

BACKGROUND:

On August 24, 2023, the Applicant filed an application to convert an existing detached accessory structure located at 1329 Stratford Court into an Accessory Dwelling Unit (ADU). At that time, it was determined by the Applicant’s civil engineer that approximately six-to-seven inches of the existing structure encroaches over the eastern property boundary of 1329 Stratford Court and onto Del Mar Lane, an improved City alley.

Based on historic records this structure pre-dates circa 1974. In consulting with various contractors, the Applicant has been advised that removing and relocating the building’s walls back onto the private property could have significant impacts to the existing structure and the alley because the structure was constructed approximately two feet lower than the existing alley surface. In the case of the ADU, it was approved with the eastern wall being relocated to be within private property. If the EP is approved the Applicant will be required to submit a revised plan showing the location of the wall in its existing location prior to building permit issuance. A site plan depicting the encroachment has been included as Attachment B. Photographs of the existing structure are included as Attachment C.
1 August 26, 2024 Item 14
City Council Agenda Report
EP24-075 (1329 Stratford Court)
August 26, 2024

Page 2 of 3 ends

DISCUSSION/ANALYSIS:

A Long-term Major Encroachment Permit, per Del Mar Municipal Code (DMMC) Section

23.28.020, is defined as any improvement designed to or having a permanent appearance and intended for use for a period of 365 days or more and includes, but is not limited to, structures or portions thereof, balconies, cornices and other architectural projections, awnings, below grade vaults, earth-retaining structures extending 12-inches or more in height above the adjacent grade, planter boxes, ramps, fences or walls, and curbs extending 12-inches or more in height above the adjacent grade.

Required Findings:

Pursuant to DMMC § 23.28.070, there are six required findings for approval that generally relate to public safety, intended use of the right-of-way, community character, aesthetics, and conversion of public land for private use. An EP shall only be approved if the City Council can make all of the following six findings:

Finding 1. That the issuance of the EP will not endanger public health, safety or welfare, or the surrounding property.

Finding 2. That the issuance of the EP will not unreasonably interfere with the intended use of a City Right-of-Way or Easement.

Finding 3. That the issuance of the EP will not have an adverse impact on the welfare of the community or on the community’s appearance or aesthetics.

Finding 4. That the issuance of the EP will not cause an unnecessary change in the character of the community.

Finding 5. That the issuance of the EP will not be to the detriment of the interests of the general public.

Finding 6. The proposed Encroachment will not convert significant area of public property to private use.

Staff consulted with the Public Works, Community Services, and Fire Departments, and determined that retaining the structure, even if converted into an ADU, would not endanger public’s health, safety, or welfare, nor would it endanger the surrounding property. The structure has been established in this location for many years with no known record of incident or reported adverse impact. The Fire Department has further indicated the existing improved alley width adjacent to the structure allows for the safe passage of fire apparatus and other emergency equipment. Finally, because the structure has been in the alleyway for fifty-plus (50+) years it has become a part of the community’s existing appearance and character.
2 August 26, 2024 Item 14
City Council Agenda Report
EP24-075 (1329 Stratford Court)
August 26, 2024

Page 3 of 3 ends

As a condition of approval, a covenant will be recorded on the property that would require that all private improvements in the public right-of-way be maintained by the property owner in accordance with the EP and the owner will be required to indemnify the City should there be a claim of liability. As is typical of all EPs, the permit and covenants will ensure that should the City need this public space in the future the structure will have to be removed by the owner at their cost. Based on the above, all required findings have been satisfied. Therefore, staff recommends approval of the EP.

FISCAL IMPACT:

There is no fiscal impact or action to be taken by the Council related to this agenda item, as this is a private development proposal. All fees associated with entitlement processing are paid for by the Applicant.

ENVIRONMENTAL IMPACT:

Pursuant to the California Environmental Quality Act (CEQA), the proposed project has been analyzed and determined to be Categorically Exempt pursuant to CEQA Guidelines Section 15301(a) (Class 1 – Existing Facilities), in that the Project proposes retention of an existing structure. Further, it has been determined that none of the six exceptions to the use of a Categorical Exemption are applicable (Guidelines Section 15300.2).

HOUSING IMPACT STATEMENT:

This action is related to an EP to retain an existing accessory structure wall in the City right of way, which would make it easier for the Applicant to convert the structure into an ADU. The ADU would increase the City’s housing stock by one unit.

ATTACHMENTS:

Attachment A – Resolution Approving Encroachment Permit 24-075 Attachment B – Site Plan
Attachment C – Photographs
3 August 26, 2024 Item 14
RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL
MAR, APPROVING ENCROACHMENT PERMIT EP24-075 TO

RETAIN A PORTION OF AN EXISTING DETACHED ACCESSORY
STRUCTURE THAT EXTENDS INTO THE PUBLIC RIGHT-OFWAY (DEL MAR LANE ALLEY) AT 1329 STRATFORD COURT; (APN: 300-012-10) IN DEL MAR, CALIFORNIA
WHEREAS, the City of Del Mar (City) is the owner of the public right-of-way (Del Mar Lane); and
WHEREAS, Alexander D. Hertzberg (Applicant) has filed an application for an Encroachment Permit (EP24-075) seeking approval to allow the existing detached accessory structure to maintained; and
WHEREAS, the structure has been encroaching into the public alleyway in its present location for over fifty years; and
WHEREAS, Del Mar Municipal Code (DMMC) Chapter 23.28 requires an Encroachment Permit (EP) for any private improvements within the public right-of-way; specifically any improvements that extend at least 12 inches above the level of the sidewalk, roadway, or adjacent grade require City Council approval; and WHEREAS, Section 23.28.070 of the Del Mar Municipal Code provides that an Encroachment Permit may be approved or conditionally approved only if the decision maker makes all of the findings set forth in Section 23.28.070(C); and WHEREAS, in accordance with requirements of the California Environmental Quality Act (CEQA), this project is listed among the classes of projects determined to have less than significant adverse effect on the environment and, therefore, is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(d) Class 1 – Existing Facilities because the project retains its existing encroachment by an existing accessory structure; and WHEREAS, on August 26, 2024, the City Council of the City of Del Mar held a duly noticed public hearing to review the referenced entitlements, and at which time all persons desiring to be heard were heard;
WHEREAS, oral and written evidence was submitted and considered to include without limitation:
a. Plans submitted by the applicant;
b. Written information submitted with the application;
c. Agenda Report, dated August 26, 2024, incorporated by reference as though fully set forth herein;
Attachment A 4 August 26, 2024 Item 14
Resolution 2024-XX

Page 2 of 5 ends

d. Additional testimony or other information submitted during the public hearing; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Del Mar that Encroachment Permit EP24-075 is hereby approved based on the following findings in DMMC Chapter 23.28.070(C):

1. The proposed encroachment will not endanger the public health, safety or welfare, or the surrounding property.

Finding: The private improvements will maintain the existing public use of the surrounding right-of-way and will not obstruct accessibility or endanger public health, safety, or welfare. The structure has been in this location for many decades and has not caused any known safety concerns. Further, the Fire Department has confirmed that this encroachment does not cause any obstructions to emergency vehicle access.

2. The proposed encroachment will not unreasonably interfere with the intended use of the City’s right-of-way.

Finding: The private improvements will not unreasonably interfere with the use of Del Mar Lane and will not block the alleyway. And should the City need for this encroachment area in the future the Encroachment Permit can be revoked with the owner having the obligation to remove the existing structure.

3. The proposed encroachment will not have an adverse impact on the welfare of the community or on the community’s appearance or aesthetics:

Finding: Because the private improvements have been located in the City right-ofway for many years without any known complaints from the public and is consistent with the appearance of other buildings along Del Mar Lane.

4. The proposed encroachment will not cause an unnecessary change in the character of the community.

Finding: The proposed encroachment has been located in the City right-of-way for many years and therefore will not cause an unnecessary change in the character of the community.

5. The proposed encroachment will not be a detriment to the interests of the general public:

Finding: Because of its limited intrusion into the alleyway, the private improvements have not and will not interfere with any present or future public use.

The encroachment does not interfere with existing public use of the surrounding right-of-way.

Attachment A 5 August 26, 2024 Item 14
Resolution 2024-XX

Page 3 of 5 ends

6. The proposed encroachment will not convert significant areas of public property to private use.

Finding: The existing encroachment does not create a new appearance of private encroachment into the public right-of-way, as the accessory structure has been located in the same location for approximately fifty years.

NOW, THEREFORE, BE IT FURTHER RESOLVED by the City Council that approval of EP24-075 shall be subject to the following conditions:

General Conditions:

GC-2 [Development authorization limited to plan set]
This permit is granted based on submitted application materials dated June 5, 2024, and so identified by the staff of the Del Mar Planning Department. Revisions to these plans and/or any proposals for modification to the project shall require review and prior authorization from the appropriate entities of the City of Del Mar.

GC- 4 [Indemnification]
To the fullest extent of the law, and by accepting this permit and implementing the development authorized herein, the applicant agrees to indemnify, hold harmless, and defend the City ( as a separate and district duty and with counsel chosen by the City) the City of Del Mar, its councilmembers, board members, employees, authorized agents, officers, and its representatives from and against any and all claims, regulatory actions, penalties, liabilities, or losses occurring as a proximate result of being granted by this permit and from any work undertaken under the permit. Such indemnity shall not apply where such injuries or claims are a result of the City’s gross negligence or willful misconduct.

GC-6 [Compliance with Conditions]
The applicant/owner hereby agrees to do all work and otherwise comply with the terms and conditions of this permit, and all applicable rules and regulations of the City of Del Mar and/or other public agency.

GC-7 [Revocation of permit due to noncompliance with conditions] This permit may be revoked by the City if noncompliance is noted to the applicant and satisfactory action is not taken by the applicant or his/her agents to achieve compliance within twenty-four (24) hours of notice.

Attachment A 6 August 26, 2024 Item 14
Resolution 2024-XX

Page 4 of 5 ends

GC-21 [No Transfer in Property Interest]
The granting of an encroachment permit pursuant to this chapter shall not constitute the transfer or relinquishment of any ownership or interest held by the City over the public right-of-way, nor shall such permit confer any vested or proprietary rights upon the holder of the permit beyond the right to utilize the encroachment area in the manner authorized by the permit and subject to all of the conditions set forth herein.

The applicant/owner agrees to protect all survey markers and monuments in the vicinity of the work and agrees to replace any markers or monuments, if damaged, to the satisfaction of the Public Works Director.

Document Conditions:

DC-1 [Recordation of a Covenant]
Prior to the commencement of work, the applicant shall record a covenant (at the applicant’s expense) against the deed for the property benefited by the approved Encroachment Permit setting forth the terms and conditions of the Permit, including the requirement for applicant’s maintenance/responsibility and removal of the encroachment upon demand by the City. The covenant shall run with the land and shall be binding on future owners and assigns. The form and content of the covenant shall be to the satisfaction of the City Manager.

DC-2 [Certificate of Insurance]
The applicant/owner shall provide a Certificate of Insurance covering the accessory structure encroachment and naming the City as an additional insured.

SP-2 [Encroachment Permit Revocation]
At the City’s discretion, the Encroachment Permit may be revoked at any time and the property owner will be required to remove the private improvement from the City right-ofway.

PE-1 [Abide by all Signage, Markings and Vehicle Codes] The applicant agrees to park legally at all times unless specifically authorized in advance via an Encroachment Permit. Any activity specifically approved must be adequately signed and monitored to ensure compliance with the encroachment permit and public safety.
a) All corners, sight lines, intersections and traffic lanes must be kept free from obstruction b) Loading and unloading must occur actively and with minimal impact to traffic or pedestrians
c) All vehicles must stay well clear of all public and private driveways (minimum of 5 feet) d) No parking that will obstruct bikes lanes or endanger pedestrians Attachment A 7 August 26, 2024 Item 14
Resolution 2024-XX

Page 5 of 5 ends

e) All vehicles will be currently registered with the state of California and display current tabs or temporary plates
f) All vehicles must be in compliance with vehicle code regulations regarding proper lights and relevant safety equipment
g) City meters must be paid and time limits followed with no exceptions PASSED, APPROVED AND ADOPTED by the City Council of the City of Del Mar, State of California, at a Regular Meeting held on the 26th day of August 2024. ____________________________
Dave Druker, Mayor
City of Del Mar
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 Kreitor, 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 26th day of August, 2024, by the following vote:

AYES:

NOES:

RECUSE:

ABSENT:

ABSTAIN:
____ _____
Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
Attachment A 8 August 26, 2024 Item 14
N 72° 35' 00" E 102.50'
N 72° 35' 00" E 102.50' N 17° 25' 00" W 69.40' N 17° 25' 00" W 69.40' S T R A T F O R D C O U R T D E L M A R L A N E EXISTING 1-STORY

SINGLE-FAMILY RESIDENCE

TO REMAIN NOT-IN-SCOPE
EXISTING 796 S.F.

DETACHED ACCESSORY
STRUCTURE 1329 Stratford Court Del Mar, California 92014 HERTZBERG RESIDENCE ADU SCALE:

JOB NO:

PRINT DATE: 1329 Stratford Court Del Mar, California

ENCROACHMENT
PERMIT 92014

DATE DESCRIPTION
SHEET TITLE:

AS NOTED
2303
1-2-2024
PROJECT STATUS: PROJECT TITLE: 3 1 0 V i a V e r a C r u z # 2 1 2 S a n M a r c o s , C A 9 2 0 7 8 f r i s b e e a r c h i t e c t s . c o m A8 5 8 6 9 2 8 0 0 3 R C H I T E C T S , I N C . FRISBEE 8/31/2025
C-40146 JAMES D. FRISBEE

RENEWAL DATE LICENSED ARCHITECTSTATE OF CALIFORNIA
This set of architectural plans has been prepared by Frisbee Architects, Inc. All ideas, designs, & layouts shown on these drawings are the property of Frisbee Architects, Inc. and are intended for use in this specific project only. Any other use, changes, or deviation from these plans shall be by written consent of Frisbee Architects, Inc.

SITE PLAN
SCALE: 1/8" = 1'-0"

SITE PLAN
A-1

PROJECT INFORMATION

SITE LEGEND

AREA CALCULATIONS

VICINITY MAP N

NOT TO SCALE
SITE

PROJECT DESCRIPTION
Attachment B 9 August 26, 2024 Item 14
Photographs- 1329 Straord Ct. from Del Mar Lane Aachment C 10 August 26, 2024 Item 14
City of Del Mar
Agenda Report
________________________________________________________________________________________________ City Council Action:

TO: Honorable Mayor and City Council Members
FROM: Martin Boyd, Principal Engineer
Joe Bride, Public Works Director
Via Ashley Jones, City Manager
DATE: August 26, 2024
SUBJECT: Resolutions Designating Undergrounding Utility Districts 2 (Beach Colony) and 25th Street
REQUESTED ACTION/RECOMMENDATION:

Staff recommends that the City Council: 1) Conduct a public hearing and adopt the Resolution (Attachment A) designating a certain portion of the City within the area west of the railroad to the coast and from 18th Street to San Dieguito River, identified as Underground Utility District 2 (Beach Colony) subject to California Public Utilities Commission (CPUC) Rule 20 in accordance with Del Mar Municipal Code (DMMC) Section 23.54.030; and 2) Conduct a public hearing and adopt the Resolution (Attachment B) designating a certain portion of the City along 25th Street from Camino Del Mar to Ocean Front, identified as Underground Utility District 25th Street subject to CPUC Rule 20 in accordance with DMMC Section 23.54.030.

BACKGROUND:

The City of Del Mar continues to implement the citywide Undergrounding Project (UP), which will remove utility poles and replace overhead cables for electricity and telecommunications with underground lines.

At City Council meetings held on April 15 and August 5, 2019, staff presented a Project Delivery Plan (Plan) that included a comprehensive set of recommendations from staff and the Undergrounding Project Advisory Committee (UPAC) to accomplish the UP. The City Council adopted the Plan, which also included the designation of City blocks (areas) as Underground Utility Districts (UUDs) (Attachment C), 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 (e.g., in the case of UUD X1A).

Staff are currently working on different stages of UUDs 1A, X1A, 1B, 2, and 3. City Council approved a Task Order with Utility Specialists to perform UUD pre-formation services for UUD 2 (Beach Colony) on December 18, 2023.
1 August 26, 2024 Item 15
City Council Agenda Report
Formation of UUDs 2 (Beach Colony) and 25th Street
August 26, 2024

Page 2 of 6 ends

DISCUSSION/ANALYSIS:

Description of Districts
UUDs 2 (Beach Colony) and 25th Street includes approximately 96 poles and 11,795 linear feet of overhead conversion from approximately 18th Street to San Dieguito River, including 318 properties and 432 residences and businesses. UUD 2 is located west of railroad right-of-way and north of UUD 1B. UUD 25th Street is located along 25th Street from Camino Del Mar to Ocean Front. Approximately 124 of the homes or buildings require undergrounding of their private service lateral at the expense of the property owner. Exhibit A to Attachment A is a map of UUD 2 and Exhibit A to Attachment B is a map of UUD 25th Street.

It should be noted that while UUD 25th Street is located within the UUD 2 project area, it is being distinguished as a separate District, because it will be partially funded with 20A funds, which is described in more detail below.

The project team, which includes City staff, outside consultants, and utility company representatives, visited UUDs 2 and 25th Street in March 2024 to verify boundaries based on field conditions, system circuitry, and project efficiency. Furthermore, staff has been coordinating with San Diego Gas & Electric (SDG&E) on the requirements for utilizing the City’s remaining Rule 20A work credits as part of UUD 25th Street.

Required Steps to Form District
The 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. This 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 (1% sales tax) revenue. SDG&E will credit the City approximately 20% of SDG&E’s construction costs for eligible Rule 20B projects, which is approximately the cost of removing the poles.

The City also has Rule 20A work credits that permits utilities to allocate ratepayer funded work credits to cities for electric facility undergrounding projects that meet eligibility criteria focused on aesthetic purposes. A letter from SDG&E regarding Rule 20A is included as Attachment D. The Rule 20A program is scheduled to end and the City currently has a Rule 20A work credit allocation balance of $351,742. No additional work credits will be allocated.

City staff will need to provide an executed City Council resolution forming a UUD and detailed project boundary map no later than December 1, 2024, to allow SDG&E time to review and allocate 20A work credits to the Project prior to the end of the Rule 20A program. Once the district is formed, all construction works will need to be completed by December 1, 2030, to allow time to close out the project by December 31, 2033. As such, 2 August 26, 2024 Item 15
City Council Agenda Report
Formation of UUDs 2 (Beach Colony) and 25th Street
August 26, 2024

Page 3 of 6 ends

staff has identified UUD 25th Street as a district sufficient in size to utilize the remaining 20A work credits. UPAC endorsed this recommendation at its June 2024 meeting.

To form a UUD, DMMC Chapter 23.54 requires a two-step process:

1. The public hearing on August 26, 2024, is the first step by which the City Council will adopt a resolution that forms the UUDs 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 UUDs 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.

Next Steps
Currently, the City is undertaking an important financial analysis to understand the overall financing requirements for the UP and potential funding options. The outcome of this work will largely determine the timing in which the UP will be completed and the schedule for each District. As such, the ultimate timing and schedule for UUDs 2 and 25th Street as well as the rest of the UP will be based on the availability of financing. Once formed, UUDs 2 and 25th Street may be placed on hold if needed until funds are available, the timing of which will take into consideration initiation of SDG&E design and any other time sensitive activities.

Following formation of the district, the next steps for UUDs 2 (Beach Colony) and 25th Street prior to construction include:
• Completion of financial analysis and options for funding of the UP needed to assist with determining the overall program financing and schedule; • Completion of necessary surveys of topographic conditions, field conditions, and other existing utilities; SDG&E preparation of a base map; environmental review; and civil engineering design;
• Completion of a tree survey to identify protected tree species within the district to plan the design to avoid/minimize impact to trees. The survey also includes identifying private trees with a root structure that may impact trenching. This is required for the purpose of environmental review;
• Preparation of designs by SDG&E, AT&T, and any other impacted telecommunications companies, which is anticipated to take up to 30 months.

Upon adoption of the resolution forming the district, SDG&E will need to evaluate the timeline for design based on their other undergrounding commitments with other jurisdictions and wildfire mitigation projects;
3 August 26, 2024 Item 15
City Council Agenda Report
Formation of UUDs 2 (Beach Colony) and 25th Street
August 26, 2024

Page 4 of 6 ends

• Preparation of construction specifications/drawings/bid schedule and technical specifications for the construction bid process;
• Coordination with residents to obtain necessary easements and completion of the undergrounding of approximately 124 private laterals;
• Prior to the public bidding process, City Council acceptance of the final design; completion of environmental review; processing of any other permits that may be required, such as Tree Removal Permits, Design Review, and/or Coastal Development permits, as necessary;
• Public bidding process for construction contractors, evaluation of bids, award of construction contract by City Council, and issuance of the Notice to Proceed; and • City Council establishment (by resolution) of a project schedule identifying the date by which properties in an established UUD must be ready to receive underground service and by which poles, overhead wires and associated overhead structures shall be removed. Once a district is fully formed, it becomes unlawful to construct or maintain aboveground facilities beyond the date established by the City for removal of such facilities.

Throughout the design process there will be extensive coordination and communication with all affected property owners and residents by the project team to discuss timing, any required work on private property, and to provide other helpful information and resources.

Furthermore, the project team will determine where easements may be needed and will coordinate with SDG&E and telecommunication companies during the design phase.

SDG&E has indicated that the design phase will take approximately 24 to 30 months after completion of City surveys, followed by three months for City bidding and award of City construction contract. Utility Specialists Southwest, Inc., the City’s project consultant, estimates construction for UUD 2 will take 15 months.

Public Noticing
In preparation for district formation, staff conducted significant public outreach and notifications through City website updates, notices mailed to impacted residents and property owners, and a legal ad in the newspaper and posted on the City’s website. The project web page (www.delmar.ca.us/up) features information on the overall UP and a map of UUDs 2 and 25th Street. Samples of the mailed public notices are included as Attachment E (sent to the property owners/residents within the UUDs) and Attachment F (sent to property owners/residents outside of, but within 300 feet, of the UUDs). After formation of the UUD, an additional mailing will be sent to the property owners and residents within the district to provide them with a copy of the district formation resolution (as required by the DMMC); collect their contact information for more targeted and ongoing communications through the design phase and preparations for construction; and to advise them of their responsibilities.
4 August 26, 2024 Item 15
City Council Agenda Report
Formation of UUDs 2 (Beach Colony) and 25th Street
August 26, 2024

Page 5 of 6 ends

Cost Responsibility
SDG&E will be responsible for a portion of the undergrounding conversion construction costs in the form of a credit for the designated area. However, the majority of the cost for work in the City’s right-of-way will be funded by the City using Measure Q revenue.

Staff are waiting to engage the City’s consultant and SDG&E for the next phase of design work until the Council provides direction regarding financing and timing of the UP. Staff will present the results of the UP financial analysis to the Council for consideration as a future agenda item.

SDG&E will not require payment of their engineering fee prior to the start of design work.

Collection of this fee will be postponed until the design is complete. Once the design is complete, SDG&E will send the City a contract with a construction estimate for their portion of the work (labor and materials). SDG&E previously communicated to the City that if the contract is not executed and paid within 90-days, the engineering fee will be immediately due and the construction estimate within the contract will expire. Therefore, it is important that all other pre-construction work associated with this project be completed in parallel with SDG&E’s design to facilitate being able to advance as quickly as possible to the construction phase and make the contractual and financial commitment to SDG&E.

AT&T requires execution of their contract and payment of their estimated engineering and inspection fee prior to start of design work. AT&T design work will commence once SDG&E completes their preliminary designs, which is anticipated in approximately 15 months after completion of City surveys.

Project Cost Estimate
The preliminary estimated total cost to the City for these two districts is $16.38 million in 2024 dollars. This includes estimated professional services during the pre-construction phase in preparation for the bid process; costs to the utility companies for their engineering fees and construction work (estimated based on UUD 1A); cost for a general contractor for City construction (also estimated based on UUD 1A); cost for construction management professional services during construction for an estimated 15-month construction schedule; and the $351,742 in Rule 20A work credits for UUD 25th Street.

This rough cost estimate is based on the preliminary district statistics for budget planning purposes only and is subject to change. Staff will continue to update the cost estimate as updated information becomes available. Furthermore, once the final design for the project is complete, Utility Specialists Southwest, Inc. will provide an updated City construction cost estimate and SDG&E will provide an estimate for their costs.

Utility Specialists Southwest, Inc. will develop project cost estimates based on prior City utility undergrounding projects and available cost data from other public projects.

However, the actual cost of the project will be based on bids received as part of the legally required competitive public bidding process that the City must undertake per State law to 5 August 26, 2024 Item 15
City Council Agenda Report
Formation of UUDs 2 (Beach Colony) and 25th Street
August 26, 2024

Page 6 of 6 ends

select a contractor for the project. Award of a contract for construction of the project must be approved by the City Council to proceed.

FISCAL IMPACT:

There is no fiscal action to be taken by the City Council for this agenda item. Staff will return to City Council with a funding request necessary for the pre-construction services once the project timing is determined following the undergrounding program financial analysis.

PRIOR CITY COUNCIL REVIEW:

On December 18, 2024, City Council approved a Task Order with Utility Specialists Southwest, Inc. to perform utility underground district pre-formation services for UUD 2 (Beach Colony).

ENVIRONMENTAL IMPACT:

Pursuant to the California Environmental Quality Act (CEQA), the proposed actions have been analyzed and determined to be Statutorily Exempt pursuant to CEQA Guidelines Section 15262 because the proposed actions are necessary to prepare studies to assess the planning and feasibility of an undergrounding project. Any project developed as a result of the City Council’s action that requires the City or the City Council’s discretionary approval resulting in a physical change to the environment will be analyzed in accordance with CEQA prior to such approval. The current City Council action in no way limits the exercise that discretion because the proposed actions do not have a legally binding effect on any possible future discretionary action.

NEXUS TO CITY COUNCIL GOALS AND PRIORITIES:

Utility Undergrounding is listed as a Tier 1 City Council priority for FYs 2023-2024 and 2024-2025.

ATTACHMENTS:

Attachment A – Resolution Designating Area Identified as UUD 2 (Beach Colony) as a Rule 20 Underground Utility District
Exhibit A to Attachment A – UUD 2 Beach Colony Map
Attachment B – Resolution Designating Area Identified as UUD 25th Street as a Rule 20 Underground Utility District
Exhibit A to Attachment B – UUD 25th Street Map
Attachment C – Citywide Map of Undergrounding Districts Attachment D – SDG&E Letter Regarding Rule 20A Work Credits Attachment E – Public Notice to Property Owners/Residents within UUDs 2 and 25th Street
Attachment F – Public Notice to Property Owners/Residents within 300 feet of UUDs 2 and 25th Street
6 August 26, 2024 Item 15

ATTACHMENT A
RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL

MAR, CALIFORNIA, ESTABLISHING AN UNDERGROUND

UTILITY DISTRICT IN THE CITY OF DEL MAR, ON COAST

BOULEVARD AND CAMINO DEL MAR (WEST OF THE RAILROAD
TO THE COAST AND FROM 18TH STREET TO SAN DIEGUITO
RIVER)
WHEREAS, on August 16, 2024, the City of Del Mar provided notice of a public hearing to ascertain whether the public health, safety, or welfare requires the removal of poles, overhead wires and associated overhead structures, and the underground installation of wires and facilities for supplying electric, communication, or similar or associated service, within the certain area of the City as shown on Exhibit A to this Resolution, designated as “Underground Utility District 2 (Beach Colony)”; and
WHEREAS, the proposed underground utility district (“UUD”) is proposed to be funded in part through funding under Tariff Rule 20B of the California Public Utilities Commission; and
WHEREAS, notice of such hearing has been given to all affected property owners as shown on the last equalized assessment roll and to all utilities concerned in the manner and for the time required by law; and
WHEREAS, on August 26, 2024, the City Council of the City of Del Mar held a duly noticed public hearing, at which time all persons interested were given an opportunity to be heard and were heard; and
WHEREAS, the undergrounding work in the proposed UUD may entail work necessary for construction of the public distribution system on private access roads; and WHEREAS, some of the access roads are on private property and will require easements for San Diego Gas & Electric’s infrastructure, and in some cases the infrastructure will need to go through private property, but it is not specifically or uniquely serving that property; and
WHEREAS, the above described work on private property is necessary for construction of the distribution system in order to complete the overall project and achieve the public benefits to be gained by undergrounding utilities.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Del Mar hereby finds and determines that the public health, safety, and welfare requires the removal of poles, overhead wires and associated structures, and underground installation of wires and facilities for supplying electric, communication and similar or associated services in the district as shown on the attached exhibit map and that, pursuant to Del Mar Municipal Code Chapter 23.54, the area described as District 2 (Beach Colony) is hereby designated and declared an Underground Utility District of the City of Del Mar. The boundaries of said 7 August 26, 2024 Item 15
Resolution. 2024-XX

Page 2 of 3 ends

district, generally described as Coast Boulevard and Camino Del Mar (West of the railroad to the coast and from 18th Street to San Dieguito River), are delineated on Exhibit A to this Resolution and hereby incorporated as part of this Resolution.

BE IT FURTHER RESOLVED, that the City Council does hereby order the removal of all poles, overhead wires and associated overhead structures, and the underground installation of wires and facilities for supplying electric, communication, and similar or associated service within the Underground Utility District. The time within which property in said district must be ready to receive underground service and by which poles, overhead wires and associated overhead structures shall be removed shall be set by subsequent resolution, pursuant to Section 23.54.030 of the Municipal Code.

BE IT FURTHER RESOLVED, that the City Clerk is hereby directed to notify all affected property owners as shown on the last equalized assessment rolls, and all affected utilities, of the adoption of this Resolution within ten (10) days after the date of such adoption, in accordance with Section 23.54.070 of the Municipal Code.

BE IT FURTHER RESOLVED, that the City Council hereby finds that the Underground Utility District herein created is in the general public interest and, moreover, that required work on private access roads and on private property is necessary for the effective and efficient construction of the overall distribution system and that, without completing such work, the public benefits – which include reduced risk of fire or power outage from downed poles or lines, and improved aesthetics within the district -- would not be realized.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Del Mar, California, at a Regular Meeting held this 26th day of August 2024. _____________________________
Dave Druker, Mayor
City of Del Mar
APPROVED AS TO FORM:
____________________________
Leslie E. Devaney, City Attorney
City of Del Mar
8 August 26, 2024 Item 15
Resolution. 2024-XX

Page 3 of 3 ends

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 26th day of August 2024, by the following vote:

AYES:

NOES:

RECUSE:

ABSENT:

ABSTAIN:
____________________________________
Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
9 August 26, 2024 Item 15
EXHIBIT A TO ATTACHMENT A 10 August 26, 2024 Item 15

ATTACHMENT B
RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL

MAR, CALIFORNIA, ESTABLISHING AN UNDERGROUND
UTILITY DISTRICT IN THE CITY OF DEL MAR, ON 25TH STREET

FROM CAMINO DEL MAR TO OCEAN FRONT
WHEREAS, on August 16, 2024, the City of Del Mar provided notice of a public hearing to ascertain whether the public health, safety, or welfare requires the removal of poles, overhead wires and associated overhead structures, and the underground installation of wires and facilities for supplying electric, communication, or similar or associated service, within the certain area of the City as shown on Exhibit A to this Resolution, designated as “Underground Utility District 25th Street”; and
WHEREAS, the proposed underground utility district (“UUD”) is proposed to be funded in part through funding under Tariff Rule 20A of the California Public Utilities Commission; and
WHEREAS, notice of such hearing has been given to all affected property owners as shown on the last equalized assessment roll and to all utilities concerned in the manner and for the time required by law; and
WHEREAS, on August 26, 2024, the City Council of the City of Del Mar held a duly noticed public hearing, at which time all persons interested were given an opportunity to be heard and were heard; and
WHEREAS, the undergrounding work in the proposed UUD may entail work necessary for construction of the public distribution system on private access roads; and WHEREAS, some of the access roads are on private property and will require easements for San Diego Gas & Electric’s infrastructure, and in some cases the infrastructure will need to go through private property, but it is not specifically or uniquely serving that property; and
WHEREAS, the above described work on private property is necessary for construction of the distribution system in order to complete the overall project and achieve the public benefits to be gained by undergrounding utilities.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Del Mar hereby finds and determines that the public health, safety, and welfare requires the removal of poles, overhead wires and associated structures, and underground installation of wires and facilities for supplying electric, communication and similar or associated services in the district as shown on the attached exhibit map and that, pursuant to Del Mar Municipal Code Chapter 23.54, the area described as District 25th Street is hereby designated and declared an Underground Utility District of the City of Del Mar. The boundaries of said district, generally described as 25th Street from Camino Del Mar to Ocean Front, are delineated on Exhibit A to this Resolution and hereby incorporated as part of this Resolution. 11 August 26, 2024 Item 15
Resolution. 2024-XX

Page 2 of 3 ends

Page 3 of 3 ends

ATTEST AND CERTIFICATION:

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

AYES:

NOES:

RECUSE:

ABSENT:

ABSTAIN:
____________________________________
Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
13 August 26, 2024 Item 15
EXHIBIT A TO ATTACHMENT B 14 August 26, 2024 Item 15

ATTACHMENT
C
15 August 26, 2024 Item 15
April 30, 2024
Joe Bride
City of Del Mar | Director of Public Works
1050 Camino del Mar
Del Mar, CA 92014
SUBJECT: California Public Utilities Commission Electric Rule 20A Update and Work Credit Summary
Dear Joe,
Thank you for your continued partnership with San Diego Gas & Electric (SDG&E) to underground our overhead electric power lines and meet our commitment to provide clean, safe, and reliable energy to our customers. This letter is intended to provide an explanation concerning the recent California Public Utility Commission (CPUC) Rule 20 Decision (D. 23-06-008) and the consequences to the City of Del Mar’s Rule 20A program.

Rule 20A Background and CPUC D. 23-06-008 Summary:

Rule 20A is a subprogram of Rule 20 under which the CPUC permits utilities to allocate ratepayerfunded work credits to cities and unincorporated counties for electric facility undergrounding projects that meet eligibility criteria focused on aesthetic purposes. In 2017, the CPUC opened a Rulemaking, R.17-05-010, to review issues related to the undergrounding of electric distribution lines, and specifically to consider the possibility of modifying the undergrounding programs pursuant to the Electric Tariff Rule 20 which is applicable to the investor-owned utilities in California. The rulemaking was separated into two phases. The Phase 1 Decision (D.21-06-013) was released in June 2021 and the Commission issued the Phase 2 Decision (D.23-06-008) approving a revised Electric Rule 20, on June 8, 2023. The second closed Rulemaking 17-05- 010.

As directed by D.23-06-008 SDG&E submitted modifications to its Electric Rule 20A Tariff in Advice Letter 4253 and in Advice Letter 4254 (approved on September 13, 2023), which was served on all communities with Rule 20A programs.

ATTACHMENT D 16 August 26, 2024 Item 15

Page 2 ends

The revised Electric Rule 20A Tariff has been updated to the following:
(a) An Active Rule 20A project shall be defined as a project with a signed resolution that the utility has designated as either “active” or on “hold.” Whereas Resolution E-4971 defines an “inactive” community as a community that has not (i) formally adopted an undergrounding district ordinance which expires at completion of work within the district boundaries, (ii) started or completed construction of an undergrounding conversion project since 2011, or (iii) received Rule 20A allocations from the utility for only 5 years or fewer due to recent incorporation. An “underserved” community is defined as any city, unincorporated county, or tribal jurisdiction that has not completed a Rule 20A project since 2004.
(b) A Rule 20A project that a utility has designated as on “hold” is a project that was initiated but has stopped for an indeterminate amount of time due to the community possessing insufficient work credits to fund the entire project.
(c) Any Rule 20A work credit that has not been allocated to a community with an Active Rule 20A Project within two years of the effective date of this decision shall be deemed expired. (d) Communities shall have the option to contribute financially to any Rule 20A project that has insufficient work credits for completion.
(e) Any Rule 20A work credit that has not been deducted from a community’s work credit balance by December 31, 2033, shall be deemed expired.

For any questions, please refer to the documents at
https://www.sdge.com/major-projects/Rule20Undergrounding Work Credit Allocations Balance:

Work Credit Balance as of January 1, 2023 $351,742
2023 Adjustments to previously reported projects $0
2023 Closed Projects $0
2024 Allocation $0
Work Credit Allocation Balance Total $351,742
Underground Utility Districts Status Summary:

SDG&E is not aware of any approved resolutions for Rule 20A utility undergrounding districts within the City of Del Mar. Currently, the City of Del Mar has a Rule 20A work credit allocation balance of $351,742 and no additional work credits will be allocated.

If the City of Del Mar elects to proceed with a Rule 20A project, City staff will need to provide an executed City Council Resolution forming a UUD, detailed project boundary map, approved environmental documentation, and City streetlighting plans no later than December 1, 2024 to allow SDG&E time to review and allocate to the Project within two years of the effective date (by June 2025) as per item (c) listed above.

ATTACHMENT D 17 August 26, 2024 Item 15

Page 3 ends

Since available Rule 20A allocations are likely not sufficient to complete a project of the minimum size outlined in the Rule 20 tariff, if the City of Del Mar does move forward with a 20A project the execution of a Mixed-Use Agreement as per item (d) listed above will be required.

Please contact me with any questions.

Sincerely,
Kelli Fitzgerald
Franchise Planning Manager
[email protected]
cc:

Michael McEachern – SDG&E | Design & Proj Mgmt | Project Manager II Joe Gabaldon – SDG&E | Regional Public Affairs | Regional Public Affairs Manger Ashley Jones – City of Del Mar | City Manager
Martin Boyd – City of Del Mar | Public Works Department | Project Manager II & “Undergrounding Project” POC
Attachments:
• 2023 Rule 20A Conversion Report - SUMMARY
ATTACHMENT D 18 August 26, 2024 Item 15

CITY OF DEL MAR

NOTICE OF PUBLIC HEARING
City of Del Mar
1050 Camino Del Mar, Del Mar, CA 92014 | 858.755.9313 | www.delmar.ca.us FORMATION OF UTILITY UNDERGROUNDING DISTRICTS 2 AND 25TH STREET NOTICE IS HEREBY GIVEN that on Monday, August 26, 2024 at 4:30 p.m., (or as soon thereafter as practicable) in the City of Del Mar Town Hall, 1050 Camino Del Mar, Del Mar, California, the City Council will conduct a public hearing on the following:

Ascertaining whether to designate certain areas of the City as utility undergrounding districts subject to California Public Utilities Commission Rule 20 and in accordance with Del Mar Municipal Code section 23.54.030.

The areas are generally described as:

District 2 (Beach Colony): Residential areas east and west of Coast Boulevard and Camino Del Mar within the area west of the railroad to the coast and from 18th Street to San Dieguito River 25th Street District: Residential areas north and south of 25th Street from Camino Del Mar to Ocean Front
Maps of the areas are available on the City’s web site at www.delmar.ca.us/up and are also attached here. Please note that you are receiving this notice because you have been identified as an affected property owner within the proposed undergrounding districts formation areas.

Materials related to this public hearing will be available at least 72 hours in advance of the meeting at City Hall, 1050 Camino del Mar, Del Mar, California 92014, during normal business hours and on our website at www.delmar.ca.us. Those desiring to be heard in favor of or in opposition to this item will be given an opportunity to do so by participating in City Council meetings in-person by addressing the City Council for up to three minutes or by submitting a written comment.

In-Person Participation: Please submit a completed “Speaker Slip”, including the item number you wish to speak on, to the City Clerk prior to the Mayor announcing the agenda item. The forms are located near the door at the rear of the Town Hall. When called to speak, please approach the podium, and state your name for the record.

Written Comments: Members of the public can participate in the meeting by submitting a written red dot comment to City of Del Mar, Attn: City Clerk, 1050 Camino del Mar, Del Mar CA 92014 or via email to [email protected]. The deadline to submit written comments is 12 p.m. on the day of the meeting and the subject line of your email should clearly state the agenda item you are commenting on.

If you have questions about the information in this notice, please contact Martin Boyd, Principal Engineer at [email protected] or (858) 375-9531.

ATTACHMENT E 19 August 26, 2024 Item 15
Pg. 2 of 2
Formation of UUD 2 – Beach Colony and 25th Street UUD
City of Del Mar
1050 Camino Del Mar, Del Mar, CA 92014 | 858.755.9313 | www.delmar.ca.us Background Information
The City of Del Mar has established a citywide Undergrounding Program (UP), which will remove utility poles and replace overhead cables for electricity and telecommunications with underground lines. This work was identified as a priority by the City Council following passage of a 1% sales tax measure known as Measure Q in 2016, which is the UP funding source. Information about the UP, along with Frequently Asked Questions, is available on the City’s UP webpage at: www.delmar.ca.us/up.

There are several Council established utility undergrounding districts throughout the City, and work on the UP will proceed on a district-by-district basis. At the public hearing noticed above, the City Council will consider the formation of Utility Undergrounding District 2: Beach Colony (UUD 2) and 25th Street Utility Undergrounding District.

In order to form a Utility Undergrounding District, Chapter 23.54 of the Del Mar Municipal Code requires a two-step process. This required action – the public hearing on August 26, 2024 - is the first step, by which the City Council, following the public hearing, forms the Utility Undergrounding District by adoption of a resolution. The second step is for City Council to adopt a resolution declaring the date by which all poles must be removed; that step will occur in the future. Once a district is formed it becomes unlawful to construct or maintain above-ground facilities beyond the date established by the City for removal of such facilities.

SDG&E will begin the project design sometime after the City establishes the districts and determines a project schedule. During the design phase, there will be extensive coordination and communication with all affected property owners and residents by City staff and its consultant team to discuss timing, any required work on private property, and other helpful resources.

For additional information, please reach out to the Undergrounding Program Team at (858) 375-9513 or [email protected].
__________________________________________ August 12, 2024 Sarah Krietor, Administrative Services Manager/ DATE
City Clerk
Attachments:
 Exhibit A (Utility Undergrounding Districts Maps – District 2 and 25th Street) Please note that you are receiving this notice because you own property or reside within the proposed Utility Undergrounding Districts 2 or 25th Street as shown on available public records.

ATTACHMENT E 20 August 26, 2024 Item 15
ATTACHMENT E 21 August 26, 2024 Item 15
ATTACHMENT E 22 August 26, 2024 Item 15

CITY OF DEL MAR

The areas are generally described as:

District 2 (Beach Colony): Residential areas east and west of Coast Boulevard and Camino Del Mar within the area west of the railroad to the coast and from 18th Street to San Dieguito River 25th Street District: Residential areas north and south of 25th Street from Camino Del Mar to Ocean Front
Map of the areas are available on the City’s web site at www.delmar.ca.us/up and are also attached here. Please note that you are receiving this notice because you have been identified as an affected property owner within the proposed undergrounding districts formation areas.

If you have questions about the information in this notice, please contact Martin Boyd, Principal Engineer at [email protected] or (858) 375-9531.

ATTACHMENT F 23 August 26, 2024 Item 15
Pg. 2 of 2
Formation of UUD 2 – Beach Colony and 25th Street UUD
City of Del Mar
1050 Camino Del Mar, Del Mar, CA 92014 | 858.755.9313 | www.delmar.ca.us Background Information
The City of Del Mar has established a citywide Undergrounding Program (UP), which will remove utility poles and replace overhead cables for electricity and telecommunications with underground lines. This work was identified as a priority by the City Council following passage of a 1% sales tax measure known as Measure Q in 2016, which is the UP funding source. Information about the UP, along with Frequently Asked Questions, is available on the City’s UP webpage at: www.delmar.ca.us/up.

For additional information, please reach out to the Undergrounding Program Team at (858) 375-9513 or [email protected].
__________________________________________ August 12, 2024 Sarah Krietor, Administrative Services Manager/ DATE
City Clerk
Attachments:
• Exhibit A (Utility Undergrounding Districts Maps – District 2 and 25th Street) Please note you are receiving this notice because you own property or reside within 300 feet of the proposed Utility Underground Districts 2 or 25th Street as shown on available public records. However, your property/residence is not within the Districts 2 or 25th Street boundary being planned for undergrounding conversion at this time.

ATTACHMENT F 24 August 26, 2024 Item 15
ATTACHMENT F 25 August 26, 2024 Item 15
ATTACHMENT F 26 August 26, 2024 Item 15
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:

TO: Honorable Mayor and City Council Members
FROM: Matt Bator, AICP, Principal Planner
Karen Brindley, Planning and Community Development Director Via Ashley Jones, City Manager
DATE: August 26, 2024
SUBJECT: Approval of Coastal Development Permit 24-026 for Paving, Surface Drainage Improvements, and Subsurface Drainage Improvements in Hoska Alley
REQUESTED ACTION/RECOMMENDATION:

Staff recommends that the City Council adopt the attached Resolution (Attachment A) to conditionally approve Coastal Development Permit (CDP) 24-026.

BACKGROUND:

An undeveloped alley exists in City right-of-way between 8th and 9th Streets from Hoska Drive to Camino del Mar (Hoska Alley). The alley’s western portion, approximately 450 feet, is undeveloped and only accessible on foot due to various encroachments from ten (10) properties. The eastern portion of the alley, which is approximately 300 feet in length, provides vehicular access from Hoska Drive to approximately ten (10) residential properties (Attachment B). The alley’s eastern portion also contains a water main with services/meters to approximately fourteen (14) properties.

The original subdivision maps for the hillside portion of the City, some of which date back to the early 1900’s, depict many alleys, most of which have never been improved due to topography challenges. These alleys are dedicated as City right-of-way. In the case of Hoska Alley, while it was never formally improved and remains in an unimproved condition, the upper portion of the alley was made accessible for vehicles with a gravel surface and has been utilized as such over time. An existing storm drain inlet is located at the western end of the accessible portion of the alley.

Over the years, Hoska Alley residents have requested that the City take steps to improve the alley to address dust and storm related drainage issues.

As part of the City Council goal setting session conducted in 2022, the Council identified completion of a Phase 1 Engineering Assessment on Hoska Alley as a Tier 2 work plan item, and funds for related work and potential future construction were allocated to the City’s Fiscal Year 2022-23 and FY 2023-2024 Capital Improvement Project (CIP) budget. 1 August 26, 2024 Item 16
City Council Agenda Report
Re: CDP24-026 (Hoska Alley CIP Project)
August 26, 2024

Page 2 of 4 ends

On January 9, 2023, the City Council approved a Task Order with Michael Baker International (MBI) to conduct an engineering assessment and provide initial design alternatives and cost projections (Phase I) for the development of Hoska Alley, and on October 2, 2023, the City Council approved further design and development of final project plans. The final design plans for the Hoska Alley Paving and Drainage Improvement Project have since been completed (Attachment B) and Public Works staff on behalf of the City and as “Applicant” now seeks approval of a CDP.

DISCUSSION/ANALYSIS:

As the Applicant, the City is requesting that the City Council issue CDP24-026 for the Hoska Alley Paving and Drainage Improvement Project. As previously summarized, the project would involve the installation of approximately 300 linear feet of asphalt paving with a three-foot-wide concrete “ribbon gutter” located in the center of the alley for surface drainage control. The width of the new paving would vary from 20-feet, the full width of the public alley right-of-way, to approximately 14-feet in areas where existing vegetation encroaches into the alley from the north and south. The new paving/gutter would connect with a short section of existing improved surface located at the eastern end of the alley.

At the western extent of the new paving, an existing drainage catch basin would be removed and replaced with a new catch basin surrounded by concrete. The existing drainage pipe and trench that flows across private property to 8th Street would be abandoned and a new 10-inch high-density polyethylene (HDPE) pipe would convey the collected water to a storm drain curb outlet on Camino del Mar. The HDPE pipe would be installed in a three- to seven-foot-deep trench that would be created via excavator equipment where possible and hand-digging where required due to site constraints.

It should be noted that there are several encroachments along the western portion of the alley that conflict with the proposed improvements. Only two (2) encroachments are permitted by the City. The properties with permitted encroachments will be required to either remove the encroachments before construction and reinstall the encroachments after construction or make accommodations for the City to complete the project while they remain in place. The remaining non-permitted encroachments will require removal prior to construction, and residents may then apply for long-term encroachment permits prior to any reinstallations.

Coastal Development Permit Findings for Approval:

The project is located within the City’s Coastal Overlay (CA Coastal Zone, non-appeals jurisdiction). Pursuant to Del Mar Municipal Code (DMMC) §30.75.200, the public works improvements to be constructed by this project are not “exempt” from the requirement for a CDP.

DMMC §30.75.140 requires that the City Council make seven findings prior to approval of a CDP. As proposed, the project may be found to comply with the standards set forth in the referenced DMMC Section. Recommended findings for the City Council’s consideration are listed below:
2 August 26, 2024 Item 16
City Council Agenda Report
Re: CDP24-026 (Hoska Alley CIP Project)
August 26, 2024

Page 3 of 4 ends

1. That the use for which the Coastal Development Permit is applied is permitted within the zone in which the property is located.

The improved (paved) roadway and new drainage system is consistent with the zoning and the construction activities and improvements would be located entirely within the City’s public right-of-way.

2. That the proposal meets the criteria of the applicable Chapters of this Title.

The project does not conflict with any applicable Chapters of the referenced Title because the public improvements would be either at or below grade improvements and the project site is not located in any of the “implementing ordinance” Overlay Zones as contained in the relevant Title.

3. That the granting of such Coastal Development Permit will be in conformity with the certified City of Del Mar Local Coastal Program.

As noted in the above, the granting of the Coastal Development Permit is in conformity with the certified City of Del Mar Local Coastal Program (LCP) because the project site is not located within any of the “implementing ordinance” Overlay Zones that are contained in the City’s LCP.

4. That for all development proposals located seaward of the first public roadway, the proposed development is consistent with and implements the applicable requirements for provision of public access contained in this Title and in the public access and public recreation policies of Chapter 3 of the California Coastal Act.

The project is not located seaward of the first public roadway.

5. That for all development proposals involving the construction or placement of a shoreline protection device, that the proposed development is consistent with and implements the applicable requirements of the Beach Overlay Zone and Setback Seawall Zone provisions contained in this Title and is consistent with and implements the provisions of the Chapter Three Policies of California Coastal Act.

The project is not in the Beach Overlay Zone and does not involve the construction or placement of a shoreline protection device.

6. That the proposal is consistent with and implements the provisions of public view protection policies IV-22 through IV-27 of the City of Del Mar LCP Land Use Plan.
3 August 26, 2024 Item 16
City Council Agenda Report
Re: CDP24-026 (Hoska Alley CIP Project)
August 26, 2024

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All public improvements implemented by the project would be below or at grade level (paving) and below grade level (drainage improvements), and therefore would not impact public coastal views.

7. That for all development proposals on sites with identified wetland resources, that the proposed development is consistent with and implements the provisions of the Lagoon Overlay Zone as contained within the City of Del Mar Local Coastal Program Implementing Ordinances and Land Use Plan.

The project is not located near identified wetland resources, and therefore would not be located in the Lagoon Overlay Zone.

FISCAL IMPACT:

There is no fiscal action to be taken by the City Council related to this agenda item. Funds for this CIP project are available in the Fiscal Year (FY) 2024-2025 Operating and Capital Budget, and any additional funding that may be needed for project construction would be requested at the time the construction contract is provided to the City Council for award consideration.

ENVIRONMENTAL IMPACT:

This project is exempt from the California Environmental Quality Act (CEQA). CEQA Guidelines Sections: 15301(b), “Existing Facilities,” which exempts projects involving the operation, repair, maintenance...or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use, such as existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities; and restoration or rehabilitation of deteriorated or damaged facilities to meet current standards of public health and safety; and 15303 (d), “new construction,” of water mains, sewage, electrical, gas, and other utility extensions, in this case an extension of a drainage utility. None of the exceptions listed under CEQA Guidelines §15300.2 apply to the Project and no unusual circumstances are present that could lead to a significant environmental effect.

HOUSING IMPACT:

This project scope does not include any type of housing development and therefore will not impact the number of housing units in Del Mar.

NEXUS TO CITY COUNCIL GOALS & PRIORITIES:

This item is listed as a Tier 2 City Council priority for FY 2023-2024 and 2024-2025.

ATTACHMENTS:

Attachment A –Resolution Approving Coastal Development Permit 24-026 Attachment B – Project Plans
4 August 26, 2024 Item 16
RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL

MAR, CONDITIONALLY APPROVING COASTAL DEVELOPMENT
PERMIT CDP24-026, TO INSTALL NEW PAVING AND SURFACE

DRAINAGE IMPROVEMENTS AND NEW SUBSURFACE

DRAINAGE IMPROVEMENTS IN THE CITY ALLEY THAT IS
LOCATED BETWEEN 8TH AND 9TH STREETS AND ACCESSED

FROM HOSKA DRIVE
WHEREAS, the City of Del Mar, as the “Applicant” filed an application for a Coastal Development (CDP) Permit (the “Project”) to install approximately 300-feet of new paving and surface drainage improvements and approximately 450-feet of new subsurface drainage in a City alley that is located between 8th and 9th Streets and accessed from Hoska Drive; and
WHEREAS, is exempt from the California Environmental Quality Act (CEQA). CEQA Guidelines Sections: 15301(b), “Existing Facilities,” which exempts projects involving the operation, repair, maintenance...or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use, such as existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities; and restoration or rehabilitation of deteriorated or damaged facilities to meet current standards of public health and safety; and 15303 (d), “new construction,” of water mains, sewage, electrical, gas, and other utility extensions, in this case an extension of a drainage utility. None of the exceptions listed under CEQA Guidelines §15300.2 apply to the Project and no unusual circumstances are present that could lead to a significant environmental effect; and WHEREAS, on August 26, 2024, the City Council of the City of Del Mar held a duly noticed public hearing to review the referenced entitlements at which time all persons desiring to be heard were heard; and
WHEREAS, at the hearing oral and written testimony was submitted and considered to include without limitation:
a. Plans submitted by the applicant.
b. Written information submitted with the application.
c. Staff Report, dated August 26, 2024, which is incorporated by this reference as though fully set forth herein; and
d. Additional testimony and information submitted during the hearing; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Del Mar that CDP24-026 is consistent with the City’s certified LCP in that:

1. The use for which the Coastal Development Permit is applied is permitted within the zone in which the property is located. The improved (paved) roadway and new drainage system would be located entirely within the public right-of-way and includes specific uses that are consistent with the zoning for which those areas of land were dedicated to the City.

ATTACHMENT A
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Resolution No. 2024-XX

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2. The project does not conflict with any applicable chapters of the Title because the Project’s public improvements are constructed at- or below- grade and the project site is not located within any of the “implementing ordinance” Overlay Zones of the Title.

3. The granting of the Coastal Development Permit is in conformity with the certified City of Del Mar Local Coastal Program (LCP) because the project site is not located within any of the “implementing ordinance” Overlay Zones of the LCP.

4. The project is not located seaward of the first public roadway.

5. The project is not located in the Beach Overlay Zone and does not involve the construction or placement of any shoreline protection devices.

6. That the proposal is consistent with and implements the provisions of public view protection policies IV-22 through IV-27 of the City of Del Mar LCP Land Use Plan because all public improvements implemented by the project would be below or at grade level (paving) and below grade level (drainage improvements) and therefore would not impact public coastal views.

7. The project would not be located near any identified wetland resources and would not be located within the Lagoon Overlay Zone.

AND BE IT FURTHER RESOLVED by the City Council of the City of Del Mar that CDP24-026 is hereby approved subject to the following conditions:

GENERAL CONDITIONS
[Note: The conditions listed below may have gaps in numbering or lettering. These gaps are intentional.]
G-1 [Business License]
Prior to commencement of any work on site, all contractors and subcontractors shall obtain a valid City of Del Mar Business License. The general contractor shall be responsible for ensuring that all subcontractors obtain required Business License and shall retain copies of said permits on site for verification by City staff.

G-3 [Development Authorization Limited to Plan Set]
This permit is granted based on submitted plans with a design date of July 24, 2024, and so identified by the staff of the Del Mar Planning and Community Development Department. Revisions to these plans and/or any proposals for modification shall require review and prior authorization from the appropriate entities of the City of Del Mar.

G-5 [Requirement for Building Permits]
Prior to commencement of work, the applicant or agent shall obtain all required Building Permits.
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Resolution No. 2024-XX

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G-6 [Construction and Demolition Waste Recycling Requirement] Owners and builders generating any construction and demolition debris on a project must comply with the minimum requirements regarding recycling or reuse for salvage set forth in the 2016 California Green Building Standards Code, Title 24, Part 11. This includes, but is not limited to, the submittal of a Construction Waste Management Plan and a minimum diversion of 65% of non-hazardous construction and demolition waste. Signage shall be posted on-site with information identifying materials to be diverted. All work associated with the project shall be done in conformance with the City of Del Mar’s Mandatory Recycling Ordinance (No. 590).

G-7 [Code Compliance]
Approval of this application shall not waive the requirement for compliance with the provisions of the Del Mar Municipal Code or other applicable City regulations in effect at the time of Building Permit issuance, unless specifically waived in this permit authorization.

G-11 [Plan for Construction-Phase Impacts]
Prior to issuance of Building Permits or commencement of project implementation (whichever comes first), the applicant shall provide a plan for construction-phase parking and equipment/materials storage for the project. The plan must include the following:
a. Identification of project material storage location; b. Identification of project equipment storage location; c. A construction-parking plan that minimizes the effect of construction worker parking in the neighborhood and shall include an estimate of the number of workers that will be present on the site during the various phases of construction and indicate where sufficient off-street parking will be utilized and identify any locations for off-site material deliveries. d. Location of any temporary sanitary facilities;
e. A note stating that “If on-street parking is utilized, a minimum street access clearance of 20ft. will be maintained”;
f. Map displaying any/all haul routes; and
g. Contact information (phone number and Email) for the on-site supervisor(s); The plan required herein shall be subject to the review and written approval of the Planning and Community Development Director, working in consultation with Parking Enforcement and Public Works Departments. The requirements mentioned above may be modified by the Planning and Community Development Director upon a determination that sufficient alternatives have been proposed which achieve a similar level of compliance.

G-13 [Permit Expiration]
This permit shall expire three years from the date of approval unless a Building Permit has been issued (if required by the DMMC) and substantial construction has been accomplished in reliance upon the permit. Pursuant to the DMMC, substantial construction is defined as:
completion of a minimum of 10% of the total amount of construction authorized by the permit, based on the monetary value of construction costs including grading, site preparation and 7 August 26, 2024 Item 16
Resolution No. 2024-XX

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construction but specifically excluding all costs associated with the acquisition of interest in the project site and all costs associated with the preparation and processing of permits or plans.

G-16 [Compliance with City Noise Regulations]
The applicant and all parties involved with implementation of the project shall comply with the regulations of the DMMC with regard to construction noise. The regulations stipulate that all construction activities are limited to the following periods: between 7:00 a.m. and 7:00 p.m. / Monday through Friday and between 9:00 a.m. and 7:00 p.m. on Saturdays.

Construction activities are prohibited during other hours and on Sundays and City Holidays.

The City’s Noise Ordinance, Chapter 9.20 of the Del Mar Municipal Code, includes the dates of City Holidays, and can be viewed on the City’s web page (www.delmar.ca.us).

G-17 [Dig Alert]
Prior to excavation or trenching, the applicant shall call Underground Service Alert of Southern California (Dig Alert- 1-800-227-2600) for a mark out of service utilities.

G-18 [Rules for Construction-related Signage]
All construction-related signage posted at the project site shall comply with DMMC Chapter

30.84 (Signs). The pertinent sections of the Sign Chapter allow installation of a total 5.5 square feet of temporary signage on a residential property (that is cumulative of all signs posted). Such signs may be posted for a maximum of sixty (60) days in a calendar year.

The restrictions noted above do not apply to the Development Pending, Construction Noise Notice and Building Permit signs required by the City as part of the project review process.

All construction related signage, including City required signs, shall be removed prior to final approval of the project.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Del Mar, at the Regular Meeting held this 26th day of August, 2024 by the following vote:
______________________________
Dave Druker, Mayor
City of Del Mar
APPROVED AS TO FORM:
________________________________
Leslie E. Devaney, City Attorney
City of Del Mar
8 August 26, 2024 Item 16
Resolution No. 2024-XX

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ATTEST AND CERTIFICATION:

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

AYES:

NOES:

RECUSE:

ABSENT:

ABSTAIN:

Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
9 August 26, 2024 Item 16
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City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:

TO: Honorable Mayor and City Council Members
FROM: Wendy House, Assistant City Attorney
Karen Brindley, Planning & Community Development Director Via Ashley Jones, City Manager
DATE: August 26, 2024
SUBJECT: Consideration of an Exemption for Monthly Rentals from Compliance with the City’s Proposed Short-Term Rental Regulations and Transient Occupancy Tax Regulations; and Amendments to the Definitions of “ShortTerm Rental” and “Long-Term Rental” under the Proposed Short-Term Rental Ordinance
REQUESTED ACTION/RECOMMENDATION:

It is recommended that the City Council consider, discuss and provide direction to staff regarding whether to: 1) exempt monthly rentals from the City’s regulations under the proposed Short-Term Rental (STR) Ordinance, including the requirement to pay Transient Occupancy Tax (TOT); and 2) amend the definitions for “short-term rental” and “long-term rental” under the proposed STR Ordinance.

BACKGROUND:

On May 20, 2024, the City Council last discussed the desired regulatory framework governing STRs in Del Mar, and instructed staff to bring forward proposed STR regulations for consideration by the Planning Commission and the City Council. On August 13, 2024, staff presented proposed STR regulations to the Planning Commission for initial review and recommendation to the City Council.

The Planning Commission recommended (4-0, in favor) that the City Council approve the proposed STR regulations, and further recommended that the City Council amend the definition of “short-term rental” to clarify that the STR regulations do not apply to monthly rentals. The latter recommendation is based on the Commission’s understanding and belief that the City does not intend to subject monthly rentals to the requirement to obtain a STR permit and comply with the operational requirements under the proposed STR Ordinance, including, but not limited to, the requirement to remit TOT to the City.

DISCUSSION/ANALYSIS:

During the May 20, 2024, City Council meeting, the Council reviewed and discussed draft regulations prepared by staff as part of the public process to develop the desired STR regulatory framework. Among the regulations considered were definitions for terms that would be used throughout the proposed STR Ordinance, including, but not limited to, the following proposed definition for “short-term rental”:
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“Short-Term Rental (STR) means the rental of a dwelling unit, or any portion thereof, for dwelling, lodging, or sleeping purposes, for not more than thirty (30) consecutive calendar days”.

Staff proposed the foregoing definition because the timeline of “not more than 30 consecutive calendar days” or “30 consecutive calendar days or less” is consistent with how STRs, or transient lodging, is defined under the following State and local laws and regulations:
• State definition of transient lodging for TOT purposes (Rev. & Tax. Code § 7280(a)) o Authorizes local agencies to levy TOT on transients of hotels and other temporary lodging “unless the occupancy is for a period of more than 30 days”.
• City definition of transient lodging for TOT purposes (DMMC § 3.12.030) o Requires TOT from transients of hotels and other temporary lodging if the occupancy is “for a period of 30 consecutive calendar days or less” (exempts persons who occupy the same premises for a period of 31 or more consecutive days).
• State prohibition on ADUs rented as STRs (Gov. Code § 66323(d)) o Prohibits ADUs from being rented as STRs; requires local agencies to mandate that ADUs be rented “for a term longer than 30 days”. • City prohibition on ADUs rented as STRs (DMMC §30.91.040(F)) o Requires the rental terms for ADUs to be “longer than 30 consecutive days”. • State definition of “short-term rental” for enforcement purposes (Gov. Code § 36900(d)(2), as mentioned in proposed DMMC § 30.96.080(B)) o Authorizes local agencies to impose stricter penalty amounts for violation of local STR regulations; defines “short-term rental” as “a residential dwelling, or any portion of a residential dwelling, that is rented to a person or persons for 30 consecutive days or less”.
• State laws governing what constitutes a “tenant” subject to tenant rights vs. shortterm lodging (Civ. Code § 1940; see, also, pgs. 3-4: California Tenants - A Guide to Residential Tenants' and Landlords' Rights and Responsibilities, Rev 2022) o Provides tenants are subject to certain tenant rights and protections under State law, which do not extend to transients of hotels and other temporary lodging who stay “for 30 days or less” and pay TOT for the occupancy. 2 August 26, 2024 Item 17
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Discussion on Applicability of Proposed STR & TOT Regulations to Monthly Rentals August 26, 2024

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Staff also located and reviewed STR ordinances from more than 60 other local agencies throughout the State that define “short-term rental” to mean a period of 30 consecutive days or less. This includes other coastal jurisdictions, which have had their respective STR ordinances approved by the California Coastal Commission, including the Counties of Santa Barbara and Monterey, and the Cities of Dana Point, Laguna Beach, Santa Cruz, and Half Moon Bay. It also includes other cities located within the County of San Diego, such as Oceanside, Encinitas, Solana Beach, and Chula Vista, that use a similar timeframe of 30 consecutive days or less to define STRs.

On May 20, 2024, the City received an email from a Del Mar resident stating rentals that have a minimum rental period of one month do not pose the same problems impacting the community as rentals with shorter durations. In an attempt to address this concern, staff modified the draft STR regulations to carve out an exemption for “long-term rentals,” defined as rentals “subject to a rental agreement, for a fixed-term or periodic tenancy period of more than thirty (30) consecutive days.”
On June 17, 2024, during the City Council’s consideration of the TOT Ballot Measure, staff informed the Council of its intent to add an exemption for “long-term rentals,” which would expressly define long-term rentals as being subject to a rental agreement for a fixed-term or periodic tenancy period of more than 30 consecutive calendar days, and that would exempt long-term rentals from compliance with the City’s STR and TOT regulations. Thereafter, staff planned to present the draft STR regulations to the Planning Commission for initial review and recommendation for approval by the City Council.

Once the Planning Commission agenda was posted and prior to the August 13, 2024, Planning Commission meeting, the City received several “red dot” items relating to the draft STR regulations expressing concerns regarding the proposed definition of “shortterm rental.” Some of the comments in the red dots included the following:
• “Short-Term rentals are defined as rentals for less than 30 days.” • “Using [the City’s STR] definition, if you rent an apartment in September for a month, it is a STR but for the month of October, it is a monthly rental.” • “The current proposed version effectively means that owners…can rent for each of the eight calendar months that have 31 days, but can’t rent for each of the four months out of the year that have 30 days….”
• “I was extremely surprised to see that the ordinance defines someone who rents monthly as falling into the category for STRs.”
A number of speakers from the community also attended the August 13, 2024, Planning Commission meeting and provided public comment regarding their concerns with the proposed definition of “short-term rental”. During Planning Commission deliberations, some of the Commissioners suggested that the City Council might want to reconsider the proposed definition of “short-term rental,” given the amount of public interest in the term. 3 August 26, 2024 Item 17
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The Planning Commission also wanted to ensure that the definition would allow the City to collect TOT on STRs, while exempting monthly rentals from the City’s STR and TOT regulations. The City Attorney’s Office indicated that any definition recommended by the Planning Commission would be further researched prior to the City Council meeting, and further refinements or suggested amendments to the City Council could be made, if necessary.

The Planning Commission ultimately recommended that the City Council adopt the proposed STR regulations, but also recommended that the definition of “short-term rental” be amended to read: “the rental of a dwelling unit, or any portion thereof, for dwelling, lodging, or sleeping purposes, for less than one month,” and further defining a month as “a period of consecutive days from the first calendar day of occupancy in any month to the same calendar day in the next month following, or the last day of the next month following if no corresponding calendar day exists.”
Following the August 13, 2024, Planning Commission meeting, staff received additional correspondence from members of the public stating they believed monthly rentals don’t have the same adverse impacts on the community as STRs. In addition, the correspondence addressed concerns that the amended definition of “short-term rental,” as recommended by the Planning Commission, did not adequately address the public’s requests to distinguish STRs from monthly rentals since the amended definition still subjected monthly rentals to compliance with the STR regulations during certain months of the year. As a result, staff and the City Attorney’s Office met to discuss the Planning Commission’s recommended definition of “short-term rental,” as applied to the characterization of monthly rentals under the proposed STR Ordinance.

The City Council has not specifically discussed distinguishing monthly rentals from STRs in the STR regulations. Thus, the Council should have the opportunity to publicly consider and discuss whether to include an exemption for monthly rentals from the City’s proposed STR regulations. In addition to public concerns expressing that monthly rentals should be exempt from the City’s STR regulations, staff also received public input arguing that monthly rentals should likewise be exempt from the requirement to pay TOT under Chapter 3.12 of the Del Mar Municipal Code (DMMC).

Based on the public input received relating to the proposed definition of “short-term rental”, and the request to expressly exclude monthly rentals from compliance with the STR Ordinance, including the requirement to pay TOT, staff recommends that the City Council consider, discuss and provide direction to staff regarding whether to:

1. Exempt monthly rentals from the proposed STR Ordinance, including the requirement to pay TOT; and
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2. Amend the definitions for “short-term rental” and “long-term rental” under the proposed STR Ordinance.

If the Council directs staff to exempt monthly rentals from the City’s regulations under the proposed STR Ordinance, it is recommended that the Council provide further direction to staff regarding the following:
• What constitutes a “monthly rental” for purposes of an exemption under the STR Ordinance.
o Staff recommends defining a “monthly rental” in accordance with the draft definition included in Attachment A.
• How to define “short-term rental” and “long-term rental” under the proposed STR Ordinance, which will be presented to the Council for introduction and consideration at the September 9, 2024, City Council meeting. o Staff recommends slightly modifying the definition of “short-term rental” that was initially presented by staff during the May 20, 2024, City Council meeting, in accordance with the draft definition included in Attachment A. As previously stated, this definition is consistent with how State and local laws define STRs.

Additionally, this would ensure consistency and uniformity with regard to the City’s enforcement of STR regulations, and also when referencing STRs in future City laws, policies and procedures.
o Staff recommends modifying the definition of “long-term rental” that was presented by staff to expressly include monthly rentals, in accordance with the draft definition included in Attachment A.
o Rather than only exempting “home exchanges” and “long-term rentals” within the definition of “short-term rental” under the “Definitions” section, staff recommends including a separate “Exemptions” section to expressly exempt these uses from the STR Ordinance, as shown in Attachment A. Additionally, staff recommends including a provision within the “Exemptions” section stating these uses are also exempt from the requirement to pay TOT under DMMC Chapter 3.12.
o Staff further recommends modifying the “Purpose” section at the outset of the proposed STR Ordinance to make it clear that the City does not intend to regulate monthly rentals in accordance with the STR regulations, and that such uses are expressly exempt from the STR Ordinance, as shown in Attachment A.
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Discussion on Applicability of Proposed STR & TOT Regulations to Monthly Rentals August 26, 2024

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It is imperative that the Council is aware that a decision to exempt monthly rentals from the proposed STR Ordinance, including the requirement to pay TOT, and/or amend the definitions for “short-term rental” and “long-term rental” under the proposed STR Ordinance does not necessitate any modifications to or invalidate Measure M, the proposed TOT Ballot Measure before the voters on November 5, 2024. This is because the text of Measure M does not define what constitutes a short-term rental and does not alter the current definition of “transient” under DMMC Chapter 3.12. Additionally, the City is authorized to exempt monthly rentals from the requirement to pay TOT without voter approval. Therefore, regardless of what the Council decides with respect to amending the proposed STR regulations as discussed herein, no modifications to Measure M would be required.

FISCAL IMPACT:

There is no fiscal impact or action to be taken by the City Council associated with this agenda item.

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.

NEXUS TO CITY COUNCIL GOALS AND PRIORITIES:

The development of STR regulations is a City Council Tier 1 for FY 2024-25.

ATTACHMENT:

Attachment A: Staff’s Recommended Modifications to the draft STR Regulations (Purpose; Definitions of “short-term rental” and “long-term rental”; and Exemptions)
6 August 26, 2024 Item 17
Attachment A
Proposed Modified STR Regulations
[Additions are shown in redlined, underlined format]

30.96.010 – Purpose
The purpose of this Chapter is to provide a permitting process and reasonable standards regulating the use and operation of Short-Term Rentals (STRs) for visitor lodging involving timeframes of thirty (30) consecutive days or less, with the intent to maintain long-term housing stock in the City of Del Mar; honor the existing policies in the Del Mar Community Plan; maintain the residential character of neighborhoods in residential zones; honor the tradition of vacation rentals during the summer, holiday, and horse-racing seasons; ensure protection of the public health, safety, and general welfare; ensure the City’s natural resources will be preserved and protected; ensure STRs will not overburden public improvements, facilities, and services; minimize adverse impacts to adjacent private properties and the surrounding neighborhood; establish distribution and concentration of STRs throughout the community; establish enforcement protocols; and ensure the regulation of STRs is, at a minimum, revenue-neutral to the City. For purposes of this Chapter, long-term rentals (including rentals for a fixed-term or periodic tenancy period totaling more than thirty (30) consecutive calendar days and monthly rentals), and home exchanges are exempt from compliance with the provisions of this Chapter.

30.96.020 – Definitions
For purposes of Chapter 30.96, the following definitions shall apply:
. . .

Long-Term Rental means the rental of a dwelling unit, or any portion thereof, for dwelling, lodging, or sleeping purposes, subject to a rental agreement, for (i) a fixed-term or periodic tenancy (e.g., month-to-month), with a total rental period of more than thirty (30) consecutive calendar days; or (ii) a monthly rental, as described in Section 30.96.025 of this Chapter.
. . .

Short-Term Rental (STR) means, unless otherwise exempt under Section 30.96.025 of this Chapter, the rental of a dwelling unit, or any portion thereof, for dwelling, lodging, or sleeping purposes, for not more than a period of thirty (30) consecutive calendar days or less. For purposes of this Chapter, Home Exchanges and Long-Term Rentals (each defined by this Chapter) are not considered STRs.
. . .
7 August 26, 2024 Item 17
Attachment A

30.96.025 – Exemptions
A. The following uses are exempt from the provisions of this Chapter:

1. Home Exchanges, as that term is defined in Section 30.96.020; and

2. Long-Term Rentals, as that term is defined in Section 30.96.020, to include (i) rentals for a fixed term or periodic tenancy totaling more than 30 consecutive calendar days; and (ii) monthly rentals.

For purposes of this Section, a “monthly rental” shall meet all of the following requirements:
a. The rental of the dwelling unit, or any portion thereof, is only rented on a monthly (or longer term) basis;
b. The rental of the dwelling unit, or any portion thereof, is reserved to the same renter for the entire monthly rental period; and
c. Should the renter leave the dwelling unit, or the rented portion thereof, prior to the expiration of the monthly rental period, then the dwelling unit, or the rented portion thereof, shall not be re-rented for a new rental period prior to the expiration of the monthly rental period. If the dwelling unit, or the rented portion thereof, is re-rented prior to the expiration of the monthly rental period, then the rental of the dwelling unit, or the rented portion thereof, becomes subject to compliance with the requirements of this Chapter.

B. In addition to an exemption from the provisions of this Chapter, the above uses under (A)(1) and (A)(2) of this Section are further exempt from the requirement to collect and remit Transient Occupancy Tax (TOT) to the City in accordance with Chapter 3.12 of this Municipal Code.
8 August 26, 2024 Item 17
City of Del Mar
Council Liaison Report
NCTD Board Meeting/Tracy Martinez July 18,2024
Informational Report/Highlights: LOSSAN Rail Realignment Notice of Preparation:

The North County Transit District (NCTD) Board of Directors (Board) received an update from the San Diego Association of Governments (SANDAG) including the CEO Mario Orso, on their efforts to realign NCTD’s railroad tracks off of the Del Mar Bluffs. SANDAG released a Notice of Preparation (NOP) of a Draft Environmental Impact Report (DEIR) for the Los Angeles-San Diego-San Luis Obispo (LOSSAN) Rail Realignment Project (Project), which included three potential tunnel alignments. SANDAG solicited public feedback through the NOP on the three potential alignments and the Project in general. As the owner of the railroad right-of-way in the Project area and the Rail Common Carrier as designated by the Surface Transportation Board, NCTD has discretionary authority over the Project. Therefore, it is considered a responsible agency under the California Environmental Quality Act (CEQA) for the Project and must provide comments on the NOP. NCTD’s response to the NOP highlights the limited information available in the NOP and notes NCTD’s inability to determine specific operational impacts of each alignment at this early stage in the Project development process. NCTD emphasizes the Surface Transportation Board’s role in approval of the construction of a realigned railroad and urges SANDAG to consider the following potential impacts of each alignment in its preparation of the DEIR: • Impacts of construction to COASTER, Amtrak Pacific Surfliner, and BNSF Railway Company freight operations of each alignment. • Operational feasibility post-construction for all forms of rail transportation, including operations through the tunnel as well as ventilation and train control systems. • Anticipated operation and maintenance costs, including information on the useful life of each alignment.

As the Railroad of Record designated by the Federal Railroad Administration, NCTD is the entity responsible for maintenance of the San Diego Subdivision of the LOSSAN corridor and would therefore assume maintenance responsibility for the newly constructed tunnel. • Connectivity to existing transit centers for each alignment, including the Solana Beach and Sorrento Valley stations as well as a future special events platform at the fairgrounds. • Impact of each alignment on travel times for all forms of rail transportation. NCTD is contractually obligated to ensure any capital improvements to the rail line do not increase travel times for Amtrak and BNSF operations.
1 August 26, 2024 Item XIV-C,G, XV-D
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August 26, 2024

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CSA17 August 06,2024
Informational Report/Highlights:

CSA-17 received the American Heart Association Lifeline EMS Recognition Gold Award for the 5th time for mission lifeline treatment of patients.

CSA-17 will need to raise their rates due to projection of being in the red by 2030. This will not affect Medicare or medical patients but will affect commercial payors. The SDFPD rates were approved previously by the Board of Supervisors and CSA-17 will ask the BOS to be allowed to be part of that group which allows higher charges. CSA -17 has a charity account for those who cannot pay. They will ask the BOS to amend the county charter early 2025.

This will help CSA -17 be solvent and have money salaries and capital equipment.

CSA-17 did over 1000 Community education hours and 152 Continuing education hours providers in a three-month period. Community education includes: CPR, Child seat safety checks and installation, “First on the Scene”.

There are job openings for EMS and other admin positions.

DMVA Annual Board Meeting July 25,2024
Informational Report/Highlights: DMVA annual report sent to all Councilmembers from Ashley. Annual report included: Financials, DMVA benefits, event programs, economic Development, Marketing.

Jen reviewed plans for Breeders Cup (Nov.1&2) including international flags, horse statues around town, light pole lights, banners and special parties. 2 August 26, 2024 Item XIV-C,G, XV-D

Del Mar City CouncilAugust 26, 2024

Del Mar City Council
August 26, 2024