recommendation that the cost for the project, including construction cost escalation and financing costs where applicable, could range from $61 to $95 million.
At that time, UPAC and staff also received an estimated cost range of $700-$1,000 per linear foot of overhead line conversion from SDG&E (who was actively completing undergrounding projects and is most familiar with this work), for a total estimated project of $52.8 to $75.4 million.
A summary of program cost estimates from 2019 through the present is provided below.
Utility
Specialists
(2019)
UPAC
(2019)
Lee & Ro
(2019)
SDG&E
(2019)
Current
(2024)
Program
Estimate
$26.5M* $32-42M $51.6M $52.8-$75.4M $105.6M
Cost Per
Linear Ft of
Overhead
$323 $464-$609 $719 $700-$1000 $1,400
*Incomplete estimate as described above
Impact of Inflation on Project Cost
The City’s actual and future projected undergrounding costs have been significantly impacted by construction cost inflation and SDG&E costs, both of which are factors outside of the City’s control.
According to the California Construction Cost Index (CCCI), construction cost inflation was low and stable at around 3% annually on average from 2009-2020. From 2019-2024, the CCCI index increased about 43% total for the period, with the highest three-year period (2021-2023) having increased about 11% on average annually.
When applied to the prior estimates provided by Lee & Ro and SDG&E in 2019, as shown in the table below, the current base project cost estimate of $105.6 million is around the higher end of the 2019 SDG&E stated range after accounting for inflation.
73.8 71.9
65.8 60.2
53.1 51.6
107.8 105.1
96.1 87.9
77.5 75.4
50.0 60.0
70.0 80.0
90.0 100.0
110.0
120.0
2019 2020 2021 2022 2023 2024
Estimated Construction Cost ($M)
Lee & Ro Estimates SDGE Estimates
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Current Base Project Cost Estimate
The current base project cost estimate in today’s dollars is $105.6 million. Key components informing the project cost estimate, which are subject to change over time based on market conditions, include the following:
• Pre-construction Services: Estimated based on the data from current projects. Preconstruction services include surveying existing conditions, design coordination with utility companies, City civil design, coordinating service lateral design with homeowners, easement coordination and recordation, and the City preparing CEQA documentation and permits. This work takes approximately 30 to 38 months, depending on district size, design complexity, and homeowner lateral and easement coordination. • SDG&E and AT&T Costs: Estimated based on the latest UUD 1A costs on a per linear foot basis for overhead or trench, if available. SDG&E and AT&T work includes engineering designs, cable and connections, service cutovers, and pole removals. Per Rule 20B, SDG&E bills the City for all work except for overhead removals, and the City also receives a credit for “overhead equivalent value”. AT&T bills the City for design and inspection. This work takes approximately 6 to 20 months, depending on district size and construction complexity.
• City Construction Costs: Estimated based on the latest UUD 1A costs on a per linear foot for overhead or trench, if available. City construction activities include trenching and installation of conduit and substructures, hand digging within proximity of protected trees and parallel existing utilities, exploratory potholes, asphalt resurfacing, concrete driveways and curbs restoration, installation of retaining walls, pedestrian ramp installation, hydroseed, irrigation repairs, traffic control and safety for vehicles and pedestrians, construction staging, storm water pollution prevention and erosion control, construction management services, geotechnical services, environmental monitoring services, and other required construction activities. This work takes approximately 6 to 20 months, depending on district size and construction complexity. • Estimating Contingency: Estimated based on design variables, some of which, such as final quantities and project complexities, are unknown until the final design is complete.
As an example, the approximate breakdown of costs for UUD 1A based on the latest cost estimate, as more fully described below, is as follows:
These percentages of costs will change for each district depending on the complexity of the design, scope of construction, and overall size of area, but this provides a general understanding of how costs are allocated for the undergrounding projects and the primary cost drivers.
UUD 1A Cost (in millions)
Pre-Construction Activities $0.67 (7%)
SDG&E Costs $3.58 (36%)
AT&T Costs $0.15 (1%)
City Construction $4.63 (46%)
City Construction Support Services $0.49 (5%)
Project Contingency $0.51 (5%)
Total $10.03
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City Construction Bids for UUD 1A – Stratford Court South On July 8, 2024, the City Council awarded the City construction contract for UUD 1A. The total project cost for UUD 1A is now estimated to be $10.03 million based on cost increases related to City construction and SDG&E. The prior total project cost estimate provided on December 4, 2023, was $5.40 million based on costs from UUD Tewa Court/10th Street. The estimated project cost at that time did not reflect SDG&E’s final reconciliation invoice and did not include a standard 10% project contingency during construction.
Based on updated final cost information for UUD Tewa Court/10th Street, the cost per linear foot of overhead conversion is now estimated at $1,312, and the cost per linear foot of joint trench is estimated at $899. This includes the cost of required professional services during the design phase in preparation for the bid process, cost for construction, costs paid to the utility companies for their engineering fees and construction work, and the cost for third party construction management services during construction.
As part of the City’s legally required competitive bidding process, the lowest base bid received for UUD 1A was $4.71 million, which is $1.67 million higher than the engineer’s estimate of $3.04 million. The following are some reasons for cost differences between the engineer’s estimate and actual bids received according to the UP consultants and selected contractor:
• Inflation of 20% since UUD Tewa Court/10th Street bids, according to the California Construction Cost Index. The UUD 1A bid is 22% higher than the UUD Tewa Ct/10th St bid on a linear foot of trench basis;
• The project location is difficult for construction and traffic/pedestrian control since it is located within congested streets containing several utilities and is near the beach; • Hand digging within proximity of protected trees, parallel existing utilities, and for exploratory potholes when crossing existing utilities;
• Shoring for deep trenches when crossing existing utilities; and • Anticipated effort for scheduling and coordination with SDG&E during construction.
The UUD 1A bid results have enhanced the City’s understanding of UP costs and provided necessary information to update the projected base costs for the entirety of the UP.
SDG&E Costs
The California Public Utilities Commission (CPUC) regulates the requirements for electric utilities with regards to their participation in utility undergrounding pursuant to tariff rules, specifically Rule
20. As such, completion of the UP necessitates coordination with utility companies, including SDG&E, AT&T, Charter Communications/Spectrum, and Crown Castle.
Specifically, the City must rely on SDG&E to complete certain portions of undergrounding projects, such as installation of cables and connections, pole removals, service cutovers, and engineering design. SDG&E has informed the City that these portions of the undergrounding project must be performed by SDG&E, and cannot be done by the City. SDG&E has allowed the City to assume responsibility for trenching and installation of conduit and substructures. 8 November 18, 2024 Item 11
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Unfortunately, limited information regarding SDG&E costs is publicly available and costs have varied significantly from project to project. The following sections below discuss the evolution of SDG&E costs related to UUD Tewa Court/10th Street and UUD 1A.
Staff is actively working to obtain more detailed cost information from SDG&E. Additionally, to better understand the City’s rights and entitlements to information under the CPUC rules and regulations, the City has engaged special legal counsel.
Based on a recent City meeting with SDG&E executive staff, the City and SDG&E management will begin meeting quarterly starting in December 2024, to address any issues that may arise, and SDG&E has committed to providing the City with more detailed cost information along with timely updates regarding changes in costs to ensure the City can properly plan financially for the project.
Additional actions to memorialize the partnership between the City and SDG&E regarding the City’s Undergrounding Program are underway.
UUD Tewa Court/10th Street
On February 8, 2023, the UUD Tewa Court/10th Street project was officially completed, with the removal of the final pole as part of a neighborhood pole removal ceremony. Through the City’s contract with SDG&E, the City is billed for the actual cost of installation of cable and connections, pole removals, service cutovers, and engineering fees.
As part of the actual cost billing process, SDG&E provides the City with an initial estimated cost invoice prior to construction and then a final reconciliation invoice based on the actual costs after construction is complete. SDG&E’s initial estimated invoice for UUD Tewa Court/10th Street was $147,595, and the final reconciliation invoice was for an additional $97,002 (66% increase), resulting in a final SDG&E cost of $244,597.
The final reconciliation invoice was sent to the City in March 2024, one-year after project construction completion. SDG&E explained that the significant increase in the final reconciliation invoice was the result of enterprise-wide cost increases due to labor costs, inflation, and supply chain challenges.
It is important to note that due to the small size of the Tewa Court/10th Street project, SDG&E billed the City on a time and materials basis. However, UUD 1A and future districts are large enough that SDG&E will obtain fixed bids for these projects (SDG&E bids this work out, as it is not done in-house). The fixed bid process will provide more control over reconciliation costs as the only expected changes in costs would be for change orders due to unforeseen field conditions, need for specialty inspections, or any other unanticipated costs during construction.
SDG&E’s final cost to the City of $244,597 for UUD Tewa Court/10th Street, represents $182 per linear feet of trench. The final overall total project cost is $928,879, which is $691 per linear feet of trench. The total project cost includes all pre-construction, City construction, SDG&E, and telecom costs for the project.
UUD 1A – Stratford Court South
The City originally budgeted $1 million for SDG&E costs for the UUD 1A, which was based on SDG&E’s initial estimate of $148 per linear foot of overhead for UUD Tewa Court/10th Street.
However, applying SDG&E’s final UUD Tewa/10th Street cost of $182 per linear foot of trench to the 11,165 linear feet of trench for UUD 1A, brings the estimated SDG&E cost to $2 million. 9 November 18, 2024 Item 11
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Upon design completion in March 2024, SDG&E provided a much higher than anticipated initial estimate of $3.56 million for UUD 1A. This estimate is 77% higher than the UUD Tewa Ct/10th Street final costs on a linear foot of trench basis. For comparison, the City’s construction costs (excluding SDG&E) have only increased 21%, which is in line with the California Construction Cost Index (20%) from receiving the bids for UUD Tewa Ct/10th Street in December 2021 and UUD 1A in May 2024.
In summary, increased costs associated with the UP are primarily related to economic inflation and unanticipated SDG&E cost escalation.
DISCUSSION/ANALYSIS:
Starting in mid-2023, City staff and the UPAC financing subcommittee began work on a Measure Q cash-flow analysis to understand when financing for the project may be needed based on a preliminary project schedule and projected costs. At that time, it was determined that project financing would not need to be further explored until 2025 in order to receive funds in 2026.
However, based on updated SDG&E costs in March 2024 and UUD 1A construction bids received in May 2024, staff identified the need to engage a specialized financial consultant much sooner than originally anticipated and initiated a Request for Qualifications (RFQ) process in June 2024.
On July 8, 2024, the City Council awarded a contract for financial advisory services to NHA, who have extensive experience providing financial consulting services, including developing financing programs for utility undergrounding projects and working on municipal revenue measures, to over 170 public agencies in California. The Council’s direction to staff at the time of the contract award was to proceed with a financial analysis and identify potential funding options to continue moving forward with the UP.
The initial scope of work to be completed by NHA includes completing a due diligence and debt capacity analysis that considers the City’s goals and challenges; developing comprehensive financing options; and assessing feasibility to fund the City’s UP. Should financing all or some of the project be the selected strategy supported by the City Council, NHA and staff would return with more detailed information about public and private financing options for consideration.
It is important to note that the financial analysis was conducted with the assumption that the City will proceed with the UP as directed by the City Council. However, there is no legal obligation for the City to do so, as utilizing Measure Q funds for undergrounding was a City Council policy decision based on strong support from the community. Should the City Council decide at some point not to proceed with the UP, staff would evaluate the status of active projects at that time and advise on any sunk costs that would be lost if the City did not move forward. Maintenance and repair of the existing overhead electrical and telecom lines and infrastructure is the sole responsibility of SDG&E and the telecom companies.
Financing Model Considerations
Immediately following Council approval of the agreement, staff began work with NHA to complete due diligence and debt capacity analyses, assess overall project financial feasibility and create a dynamic financial model that analyzes different funding strategies and alternatives.
The financial model created by NHA includes multiple assumptions and inputs including pay-asyou-go (Pay-Go) versus financing; reserve fund balance tracking; Measure Q revenue growth 10 November 18, 2024 Item 11
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projections; project inflation; financing terms (amortization); interest rates; and timing of program costs. Included as Attachment A is a technical memorandum from NHA that explains the details behind the methodology used to develop the model assumptions.
The analysis also took into consideration the City’s debt capacity. Traditionally, the City has maintained low debt and currently has only two governmental long-term debts. One of which is secured and paid for using the City’s annual TransNet revenue allocations and is held and managed by the San Diego Association of Governments (SANDAG) debt financing program. This loan does not have any impact on the City’s General Fund. The second loan was secured in 2017 to finance construction of the Civic Center, which is paid for with General Funds and has a remaining balance of $13.5 million. The loan will mature on August 1, 2045.
Potential Project Funding Approaches
In modeling potential funding strategies, NHA and staff looked at several scenarios including PayGo (no borrowing); issuing debt incrementally to fund district projects while keeping debt service within the Measure Q revenue flow; and a hybrid of the two. Pay-Go models utilize reserves and/or ongoing revenues and require ample cash reserves to fund projects. Issuing debt can accelerate phased projects and capture project cost savings by limiting inflation impacts but does result in additional administrative borrowing costs and interest.
Funding Scenarios
The model created by NHA allows the City to run an unlimited number of funding scenarios. Since the model is based on current assumptions, it was determined that a funding strategy could be decided by providing three funding scenarios, which are described in detail in the technical memo and summarized below. In all cases, the funding source for any costs related to the UP is Measure Q.
An Undergrounding Funding Analysis Summary showing each of the three scenarios side-by-side is included as Attachment D. An individual overview of each scenario is included as Attachment E, which provides a summary of the funding scenario, cash flow analysis, and project timeline.
The base assumptions are consistent across all three scenarios and are as follows:
• Base project cost estimate: $105.6 million
• Annual Measure Q Revenue Growth: 2.5%
• Annual Cost inflation: 3.5%
• Annual Earnings Rate on Reserves: 2.0%
• Financing assumptions
o 30-year term; 4.50% interest rate
o 15-year term; 4.15% interest rate
To determine the assumptions for inflation, revenue growth, and earnings on reserves, staff performed various analyses to determine the appropriate base assumptions, which are further described below.
Measure Q Revenue Growth
The model assumes annual Measure Q revenue growth of 2.5%. The 2.5% annual revenue growth assumption is supported by factors including: average annual growth of 4.13% since Measure Q’s inception (2017) and average sales tax annual revenue growth of 2.7% from 2004- 2023. Since there are only seven full years of Measure Q revenue data, of which two of those 11 November 18, 2024 Item 11
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years were impacted by the pandemic, staff also evaluated annual average growth of sales tax revenue to determine the base assumption of 2.5%.
Project Cost Inflation
The model assumes an annual project cost inflation of 3.5%. CCCI average annual growth was
4.96% annually over the last 10-years and 4.41% for a 20-year period. This includes the high inflation period from 2019-2023 when inflation was approximately 11% on average. Excluding the outlier high inflation period, the rate changes to 3.06% for a 10-year period to 4.09% for a 20-year period.
Annual Interest Rate on Reserves
Since Measure Q reserves are liquid funds that should be available as soon as funds are needed, the base annual interest rate on reserves of 2% was based on Local Agency Investment Fund (LAIF) average annual yields. Although current LAIF rates are favorable, the 10-year average annual yield from 2015-2024 is 1.4% and 1.0% for a 20-year period. Based on the recent 3-year average annual yield of 2.2%, staff has included a 2% assumption for the initial model input.
Although an interest rate sensitivity analysis was not performed on all scenarios, staff ran the model with a 3% and 1% earnings rate, and inputs indicate that project timeline would shorten or extend by 1-2 years if the performance is better or worse than anticipated.
Financing Assumptions
Financing assumptions used in the model were based on offerings that were available at the time when the model was created. Since then, rates have slightly decreased, which may only have a positive impact to the timeline of the entire project. If Council decides to proceed with the initial borrowing, rates in the model will be updated with offerings that are available at that time.
District start and end dates included in the model are based on the base assumptions listed above.
Actual results of assumptions (i.e., cost inflation, revenue growth, interest earned on reserves) will impact project timelines with positive results shortening the project timeline and unfavorable results extending the project timeline. A sensitivity analysis was performed by NHA which is further described in their technical memorandum (Attachment A) and included for each individual scenario summary listed below.
Although the true total project cost is unknown, included in the analysis for each scenario is the estimated total project cost presuming all assumptions remain unchanged.
Scenario 1: Pay-Go/No Financing Strategy (35-Year Funding Program) This scenario does not include any borrowing and anticipates a project completion time of 35 years (2059) for all districts. This scenario indicates that sufficient funds will not be available in Measure Q reserves to construct UUD X1A until 2029, resulting in having to delay the project construction by three years. This delay will result in increased project costs related to redesign and cost inflation based on the current annual cost inflation assumption of 3.5%. It will also defer pole removal for a top priority fire hazard area. Since this scenario does not include any financing, there are no expenses related to cost of issuance and interest expense.
As reported in the cash flow analysis, based on an assumed earned interest on reserves of 2%, this scenario would generate more interest income in comparison to Scenario 3 described below.
However, the 35-year timeline of this scenario results in an increase in inflation cost adjustment 12 November 18, 2024 Item 11
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when compared to the other two scenarios. The total project cost summary below assumes a
3.5% annual inflation cost adjustment.
Summary of Project Cost
Base Project Cost $105.6 million
Inflation Cost Adjustment 99.5 million
Total Project Cost (inflation-adjusted) $205.1 million
Net Present Value $105.5 million
Sensitivity Analysis
NHA Advisors completed a sensitivity analysis for each scenario. The sensitivity analysis is intended to “stress test” the model and provide “bookend” best-case and worst-case assumptions for revenue and inflation, to demonstrate how the project will be impacted by changes to these assumptions.
• Baseline: 2.50% revenue growth and 3.50% inflation – Total project completion 2059 • Negative Outcomes: 0.5% lower revenue and 0.5% higher inflation – Total project completion in 2069
• Positive Outcomes: 0.5% higher revenue and 0.5% lower inflation – Total project completion in 2052
Scenario 2: Minimal Financing Strategy (35-Year Funding Program) This scenario involves an initial borrowing of $17 million to finance UUDs X1A and 1B to maintain the existing project schedule beginning construction for UUD X1A in early 2025.
UUD X1A is nearing final design completion and almost all necessary easements for the project have been obtained. UUD X1A is identified as a high fire risk area for the City and was prioritized in the PDP for early completion.
UUD 1B is a small district with a lower overall cost compared to other districts and is already at 30% design completed. Financing the project would allow the City to take advantage of today’s cost and avoid inflation associated with delaying the project. All remaining projects would be funded through a Pay-Go model.
Scenario 2 is a 35-year project with an estimated completion date for all UP districts by 2059.
This scenario represents a minimal financing strategy that includes one 15-year term loan/bond with lower interest costs. Financing terms are not within the scope of this report; however, if this option is selected, the City Council may determine that a 30-year term bond is more beneficial as it will lower the debt payment and free up Measure Q revenue to begin UUD 2 as soon as sufficient Measure Q reserves are available.
Although the inflation cost adjustment for this scenario is slightly lower than Scenario 1, this scenario does not delay UUD X1A and UUD 1B, which will avoid redesign costs. The total project cost summary below assumes a 3.5% annual inflation cost adjustment and a 15-year term loan/bond at a 4.15% rate.
Summary of Project Cost
Base Project Cost $105.6 million
Inflation Cost Adjustment 97.7 million
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Financing Cost 6.6 million
Total Project Cost (inflation-adjusted)
Net Present Value
$209.8 million
$106.7 million
Sensitivity Analysis
• Baseline: 2.5% revenue growth and 3.5% inflation – Total project completion 2059 • Negative Outcomes: 0.5% lower revenue and 0.5% higher inflation – Total project completion in 2069
• Positive Outcomes: 0.5% higher revenue and 0.5% lower inflation – Total project completion in 2053
Scenario 3: Finance As You Go/Accelerated Financing Strategy (20-Year Funding Program)
This scenario involves an initial borrowing of $17 million to finance UUDs X1A and 1B with the intent to continue to borrow for the remaining districts over time to accelerate the project timeline.
The speed of the borrowings can be determined based on the actual results received.
Staff provides Council annual updates related to Measure Q revenue growth and reserves. If Scenario 3 is the selected funding strategy, following the initial borrowing, staff would return to Council in 2027 with updated financial information seeking direction on whether to proceed with designing UUD 2, which would occur in preparation for the next expected required borrowing in 2029 to cover district construction costs. At that time, the Council could decide to proceed or hold off on initiating design/financing for the District based on current finances and market conditions.
The City would continue to use this approach until all districts are completed.
Scenario 3 allows for a potentially 20-year project with an estimated completion date for all UP districts of 2044. This accelerated financing strategy requires all borrowing terms to be 30-years to keep annual debt service payments within the projected Measure Q revenues.
Accelerating the project timeline reduces inflation costs, but also increases financing costs. Based on current assumptions, this scenario is projected to have the highest total project cost but will allow the City to complete the total project 15 years earlier than Scenarios 1 and 2. The total project cost summary below assumes a 3.5% annual inflation cost adjustment and 30-year term bond at a 4.50% rate for all borrowings.
Summary of Project Cost
Base Project Cost $105.6 million
Inflation Cost Adjustment
Financing Cost
37.9 million
80.1 million
Total Project Cost (inflation-adjusted) $223.7 million
Net Present Value $115.2 million
Sensitivity Analysis
• Baseline: 2.5% revenue growth and 3.5% inflation – Total project completion 2044 • Negative Outcomes: 0.5% lower revenue and 0.5% higher inflation – Total project completion in 2061
• Positive Outcomes: 0.5% higher revenue and 0.5% lower inflation – Total project completion in 2039
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Included with this report as Attachment E is an Undergrounding Project Funding Summary, Cash Flow Analysis, and UP project timeline for all three scenarios.
If the Council decides to pursue a strategy that involves financing (Scenario 2 or 3) a Debt Policy can be created to place additional guardrails on Measure Q funds to ensure sufficient Measure Q revenues are available to pay current undergrounding debt, even during a recession or unforeseen economic crisis such as the COVID-19 pandemic. The recommended initial borrowing of $17 million to proceed with UUDs X1A and 1B will result in a debt service payment that utilizes no more than 45% of anticipated Measure Q revenue collected throughout the term of the loan.
UPAC Recommendation
On September 24, 2024, following a presentation and thorough discussion, UPAC recommended the City proceed with Scenario 3 (Accelerated Financing Strategy) to accelerate undergrounding to be completed in 20 years or as soon as feasible by borrowing funds to construct each district.
In addition, UPAC further recommended continued monitoring of cost variables for feasibility, particularly at each financing stage, continued efforts to assess cost efficiencies, and work with SDG&E to better understand and control costs.
Finance Committee Recommendation
On October 22, 2024, the Finance Committee received a presentation from staff and NHA Advisors and recommended the City Council authorize staff to further explore financing options, including 15-year, 20-year, and 30-year loan options, and return to the Finance Committee. The Finance Committee also requested the City Council direct staff to analyze the impact of separating the financing of UUDs X1A and 1B.
The Finance Committee raised the question of financing only UUD X1A for Scenario 2. As part of evaluating potential funding scenarios for consideration, staff already evaluated a scenario of financing only UUD X1A and not including 1B, which was not deemed favorable.
While financing only UUD X1A would reduce borrowing by $3 million from an initial borrowing of approximately $17 million to $14 million which would decrease interest cost for the life of the loan by $1.1 million. However, not including UUD 1B in the initial borrowing would delay the project by two years as well as delay UUD 2 by one year, resulting in an increase in inflation adjustment of $1.2 million.
Since the net cost of removing UUD 1B from the initial borrowing resulted in a higher total project cost and a delay in project construction, staff decided not to include financing only UUD X1A as an option for potential financing scenarios. Additionally, separating the financing for UUD 1B, which is expected to be 60% designed by year end, and delaying the project by two years will likely result in a partial re-design process with SDG&E, the cost of which is roughly estimated to range from $100,000 to $400,000.
Key Takeaways
The model will serve as a critical tool for the City Council and community when considering important future funding decisions over the life of the UP. Since the model includes completion of UP districts in a 20 to 35-year span, assumptions for future years above the initial borrowing are less reliable.
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The model variables including revenue growth, annual cost inflation, earnings on reserves, interest rate on the borrowing, and project costs will continue to be updated annually based on changing conditions. The model will also be updated when actual information, such as project costs for a given district or interest rates on borrowing, is known. The model can be reassessed in detail prior to each future borrowing decision by the City Council.
Financing $17 million is necessary to complete UUDs X1A and 1B to remain on the current schedule. Overall, a 20 to 35-year program funding plan for remaining districts is feasible assuming 3.5% annual inflation and 2.5% revenue growth. Higher inflation or lower revenue growth could extend project timelines, whereas lower inflation and higher revenue growth could expedite the project timeline.
Next Steps
If the City Council directs staff to proceed with further evaluating borrowing options to fund UUD X1A and 1B construction, staff will work with NHA to complete the necessary work and return to the Finance and Undergrounding Committees with more detailed information about borrowing options, timing, and cost in January 2025. A presentation to Council along with recommendations from the UPAC, Finance Committee and staff would occur shortly thereafter. In order to keep the existing schedule to begin UUD X1A construction in early 2025, the City will need to initiate the borrowing process as quickly as possible if that is how the Council decides to proceed.
FISCAL IMPACT:
Approval of the recommended action will result in an approved Task Order with NHA totaling up to $25,000, which requires amending the Fiscal Year 2024-2025 Operating and Capital Budget as follows:
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:
Utility Undergrounding is listed as a Tier 1 City Council priority for FYs 2023-2024 and 2024-2025.
ATTACHMENTS:
Attachment A – NHA Advisors Technical Memo Debt Capacity Analysis and Financial Mode Attachment B – Task Order 2 NHA Advisor
Attachment C – Resolution 2018-63 Designating use of Measure Q Funds Attachment D – Undergrounding Project Summary (all scenarios) Attachment E – Funding Summary, Cash Flow Analysis, and Project Timeline for Proposed Scenarios 1-3
PROJECT FUND ACCOUNT AMOUNT
Undergrounding Project - General Measure Q 02.7000.7001 $25,000 Total $25,000
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4040 Civic Center Drive, Suite 200
San Rafael, CA 94903
Office: 415.785.2025
www.NHAadvisors.com
MEMORANDUM
Date: October 16, 2024
To: City of Del Mar
From: NHA Advisors, LLC
RE: Del Mar Undergrounding Project – Debt Capacity Analysis and Financial Model Background and Overview
The City of Del Mar (the “City”) has embarked on the Del Mar Undergrounding Project to underground the City’s utilities. The City formed several undergrounding districts (the “Undergrounding Districts” or the “Projects”) which prioritized the Projects based on density and fire safety.
In 2016 the City approved Measure Q, a 1% local transaction and use tax (a general tax requiring a simple majority approval). Measure Q is considered a general fund revenue and is unrestricted (i.e., may be used for any City governmental purpose). The City Council has prioritized application of Measure Q revenues for funding the Utility Undergrounding Program. City staff estimates that Measure Q revenues for 2025 will be $3.5M.
The City has established the following Undergrounding Districts:
Project Tewa 1A X1A 1B 2 3 4 5 Total ($)
Total Project
Funding Costs 0.9M 10.0M 17.8M 5.5M 16.4M 28.6M 17.3M 9.1M 105.6M Projects completed to date
• Tewa Court (Funded through Measure Q Revenues)
Projects underway
• Project 1A (Funded through Measure Q Revenues)
• Project X1A (Funding Solution)
• Project 1B (Preliminary Design)
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DEL MAR UNDERGROUNDING PROJECT – DEBT CAPACITY ANALYSIS AND FINANCIAL MODEL OCTOBER 16, 2024 PAGE 2
Project Engagement
NHA Advisors, LLC was engaged by the City to evaluate and provide funding recommendations for the City’s Utility Undergrounding Program. Specifically, the City requested a debt capacity analysis and financial model to run various financing scenarios.
The primary approaches to funding the City’s projects are to use 1) Measure Q revenues; 2) debt proceeds; or 3) a combination of both Measure Q revenues and debt proceeds. The model restricts all funding options (and Project phasing) to solutions only requiring Measure Q revenues (for either Project expenditures, debt service or “banking” for future year needs). No general fund subsidy or other funding source is considered.
The model projects the cash flow and financial impact for various scenarios based on the following primary structures and assumptions:
• Pay-as-you-go vs. financing
• Reserve fund balance tracking
• Measure Q revenue growth
• Project Inflation
• Financing term (amortization) & debt interest rates
The concept of the model & analysis is to 1) maintain Measure Q revenues (fund balance) sufficient to either fund Project expenditures on a timely basis or 2) cover debt service payments when due. Where financing is included, a portion of the Project costs are covered by debt proceeds in addition to projected available Measure Q revenues (Measure Q revenues are always applied to each Project phase). In addition, debt service payments are constrained to available Measure Q revenues (net of allocated Project costs). The overall objective of the analysis is to estimate the impact on the timing of each Project phase under different funding strategies.
Financial Analysis
The model assumptions include:
• 2024 Measure Q Beginning Balance – $9,005,836
• 2024 Measure Q Revenues – $3.13M
• 2025 Projected Measure Q Revenues – $3.5M
• Measure Q Revenue Growth – 2.50%
• Project Cost Inflator – 3.50%
• Measure Q Revenue Earnings (Investment Return) – 2.00% • Debt Interest Rate (Tax-Exempt) – 4.50%
• Measure Q Revenue Allocation – $75K/year Street Project Expenditures, 100% of remaining revenues applied to the Projects
• Project Expenditure Timing based on available cash flow (per scenario) 18 November 18, 2024 Item 11
DEL MAR UNDERGROUNDING PROJECT – DEBT CAPACITY ANALYSIS AND FINANCIAL MODEL OCTOBER 16, 2024 PAGE 3
Based on the model assumptions and outputs, the assumptions impacting the overall Project implementation include (1) Measure Q Revenue growth and (2) Project Expenditure inflation. Sensitivity analyses were completed for all three scenarios.
The sensitivity analysis examines scenarios where both Measure Q revenues and Project Cost inflation are impacted by either 1) negative economic outcomes or 2) positive economic outcomes, as described below.
To establish parameters that materially impact timing for each scenario, growth rates were adjusted within a ±0.50% band.
• Negative economic outcomes:
o 0.50% lower revenue
o 0.50% higher inflation
• Positive economic outcomes:
o 0.50% higher revenue
o 0.50% lower inflation
Scenario 1: Pay-Go All Projects
The first scenario assumes all projects are funded with accumulated Measure Q revenues and does not incorporate any financing. To facilitate a pay-go program, the City will need to accumulate cash over time to pay for design and construction costs. Accumulated cash is assumed to earn interest to apply to project costs.
Under this scenario, and based on the inputs outlined in the previous section, the City projects to accumulate enough Measure Q revenues to fully fund Project X1A in 2029 with pre-construction design costs occurring prior to that date. Upon funding of Project X1A, the City then accumulates enough Measure Q revenues to fund Project 1B, which could be fully funded in 2031. If the model inputs were to materialize over the next 35 years, then Project 5 could be fully funded in 2059. The following table summarizes the base costs for all Projects. Also included is the estimated inflation cost, applying 3.50% annual inflation. There are no financing interest costs related to this scenario.
Project Tewa 1A X1A 1B 2 3 4 5 Total ($)
Total Base
Project Cost
(Design +
Construction)
0.9M 10.0M 17.8M 5.5M 16.4M 28.6M 17.3M 9.1M 105.6M
Total Inflation
Cost Adjustment 0.0M 0.0M 3.0M 1.4M 9.1M 34.0M 31.0M 21.0M 99.5M Total Bond/Loan
Interest Cost 0.0M 0.0M 0.0M 0.0M 0.0M 0.0M 0.0M 0.0M 0.0M Total Project
Funding Costs 0.9M 10.0M 20.7M 7.0M 25.5M 62.6M 48.3M 30.1M 205.1M Estimated
Funding
Timeline for
Project
Construction
2029 2031 2037 2047 2054 2059
19 November 18, 2024 Item 11
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The following chart demonstrates graphically Measure Q annual revenues, increasing by 2.50% annually, against pay-go project expenditures. Scenario 1 includes no financing debt service.
The following chart below demonstrates graphically Measure Q accumulated balances. Cash balances peak and drop off periodically as projects are funded. Specifically, in each year where pay-go expenditures in the above chart are shown (navy bars), the Measure Q fund balance is reduced accordingly in the chart below. $-
$10
$20
$30
$40
$50
$60
$70
202420262028203020322034203620382040204220442046204820502052205420562058206020622064 Millions
Measure Q Revenues v. Pay-Go Expenditures
Total Bond Debt Service Total Pay-Go Expenditure Measure Q Revenues (Undergrounding) $-
$10
$20
$30
$40
$50
$60
$70
202420262028203020322034203620382040204220442046204820502052205420562058206020622064 Millions
Projected Measure Q Fund Balances
20 November 18, 2024 Item 11
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Applying the sensitivity analysis to Scenario 1 impacts the projected outcome by several years. If negative economic outcomes occur (demonstrated by 0.50% lower revenue and 0.50% higher inflation), the project funding timeline could be 10 years longer. However, if positive economic outcomes materialize (demonstrated by 0.50% higher revenue and 0.50% lower inflation) the timeline could be 7 years shorter.
The sensitivity outcomes can be used to assess the magnitude of such impacts; actual timing will be determined over time as economic conditions shift.
Scenario
Positive
Outcomes Baseline
Negative
Outcomes
Total Program Funding Timeline (Year) 2052 2059 2069
Scenario 2
The second scenario assumes that the City finances $17 million to facilitate the completion of Project X1A and Project 1B. All remaining projects are cash funded on a pay-go basis. As with Scenario 1, the timing of future projects (Projects 2 – 5) is determined based on the accumulation of Measure Q annual revenues plus interest earned. Under this scenario, Project X1A is funded in the near-term and Project 1B is funded in 2026.
Upon the funding of Project X1A and 1B, the City then accumulates enough Measure Q revenues to fund Project 2, which could be fully funded in 2035. If the model inputs were to materialize over the next 35 years, then Project 5 could be fully funded in 2059. The following table summarizes the base costs for all Projects.
Also included is the estimated inflation cost, applying 3.50% annual inflation. The City would incur financing (interest) costs on the $17 million borrowing. Such costs are estimated to be approximately $6.6 million.
Project Tewa 1A X1A 1B 2 3 4 5 Total ($)
Total Base
Project Cost
(Design +
Construction)
0.9M 10.0M 17.8M 5.5M 16.4M 28.6M 17.3M 9.1M 105.6M
Total Inflation
Cost Adjustment 0.0M 0.0M 0.0M 0.4M 7.4M 36.2M 32.7M 21.0M 97.7M Total Bond/Loan
Interest Cost 0.0M 0.0M 6.6M 0.0M 0.0M 0.0M 0.0M 0.0M 6.6M Total Project
Funding Costs 0.9M 10.0M 24.3M 5.9M 23.8M 64.8M 49.9M 30.1M 209.8M Estimated
Funding
Timeline for
Project
Construction
2024 2026 2035 2048 2055 2059
21 November 18, 2024 Item 11
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The following chart demonstrates graphically Measure Q annual revenues, increasing by 2.50% annually, against pay-go project expenditures. The light blue bars show estimated annual debt service payments for the funding of Project X1A and Project 1B.
The following chart below demonstrates graphically Measure Q accumulated balances. Cash balances peak and drop off periodically as projects are funded. Specifically, in each year where pay-go expenditures in the above chart are shown (navy bars), the Measure Q fund balance is reduced accordingly in the chart below. $-
$10
$20
$30
$40
$50
$60
$70
202420262028203020322034203620382040204220442046204820502052205420562058206020622064 Millions
Measure Q Revenues v. Bond & Pay-Go Expenditures
Total Bond Debt Service Total Pay-Go Expenditure Measure Q Revenues (Undergrounding) $-
$10
$20
$30
$40
$50
$60
$70
202420262028203020322034203620382040204220442046204820502052205420562058206020622064 Millions
Projected Measure Q Fund Balances
22 November 18, 2024 Item 11
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Applying the sensitivity analysis to Scenario 2 impacts the outcome by 6-10 years. If negative economic outcomes occur (demonstrated by 0.50% lower revenue and 0.50% higher inflation), the timeline for project funding and completion could be 10 years longer. However, if positive economic outcomes materialize (demonstrated by 0.50% higher revenue and 0.50% lower inflation) the timeline could be 6 years shorter. As previously mentioned, the sensitivity analysis is used to demonstrate the magnitude of such impacts and actual results will vary.
Scenario
Positive
Outcomes Baseline
Negative
Outcomes
Total Program Funding Timeline (Year) 2053 2059 2069
Scenario 3: Finance all districts + cash reserves applied The third scenario assumes that the City finances $17 million to facilitate the completion of Project X1A and Project 1B. All remaining projects are funded with financing and accumulated cash is used to offset the amount financed. Under this scenario, Project X1A is funded in the near-term and Project 1B funded in 2026.
Upon completion and funding of Project X1A and 1B, the City then implements a pay-go and financing plan.
Over time, the City would borrow approximately $92 million and would fund the remaining project costs with accumulated Measure Q funds.
If the model inputs were to materialize over the next 20 years, then Project 5 could be fully funded in 2044.
Debt service payments would continue until 2074, unless the City were to apply accumulated cash after the projects are fully funded to pay off outstanding debt. The following table summarizes the base costs for all Projects. Also included is the estimated inflation cost, applying 3.50% annual inflation. The City would incur financing (interest) costs on the $92 million borrowing. Such costs are estimated to be approximately $80.1 million.
Project Tewa 1A X1A 1B 2 3 4 5 Total ($)
Total Base
Project Cost
(Design +
Construction)
0.9M 10.0M 17.8M 5.5M 16.4M 28.6M 17.3M 9.1M 105.6M
Total Inflation
Cost Adjustment 0.0M 0.0M 0.0M 0.4M 3.6M 11.5M 13.6M 8.9M 37.9M Total Bond/Loan
Interest Cost 0.0M 0.0M 14.8M 0.0M 8.0M 25.9M 19.9M 11.4M 80.1M Total Project
Funding Costs 0.9M 10.0M 32.6M 5.9M 28.1M 65.9M 50.8M 29.4M 223.7M Estimated
Funding
Timeline for
Project
Construction
2024 2026 2030 2034 2041 2044
23 November 18, 2024 Item 11
DEL MAR UNDERGROUNDING PROJECT – DEBT CAPACITY ANALYSIS AND FINANCIAL MODEL OCTOBER 16, 2024 PAGE 8
The following chart demonstrates graphically Measure Q annual revenues, increasing by 2.50% annually, against debt service (light blue bars) and pay-go project expenditures (navy bars). Annual debt service is structured to keep within annual Measure Q revenues.
The following chart below demonstrates graphically Measure Q accumulated balances. As the City would implement multiple financings with Scenario 3, Measure Q funds do not peak and drop as with prior scenarios since annual revenues are be applied to pay annual debt service payments. Upon completion of all projects, accumulated funds could be used to pay off debt, if desired by the City. $-
$2
$4
$6
$8
$10
$12
202420262028203020322034203620382040204220442046204820502052205420562058206020622064 Millions
Measure Q Revenues v. Bond & Pay-Go Expenditures
Total Bond Debt Service Total Pay-Go Expenditure Measure Q Revenues (Undergrounding) $-
$10
$20
$30
$40
$50
$60
202420262028203020322034203620382040204220442046204820502052205420562058206020622064 Millions
Projected Measure Q Fund Balances
24 November 18, 2024 Item 11
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Applying the sensitivity analysis to Scenario 3 impacts the outcome by 5-15 years. If negative economic outcomes occur (demonstrated by 0.50% lower revenue and 0.50% higher inflation), the timeline for project funding and completion could be 15 years longer. However, if positive economic outcomes materialize (demonstrated by 0.50% higher revenue and 0.50% lower inflation) the timeline could be 5 years shorter. As previously mentioned, the sensitivity analysis is used to demonstrate the magnitude of such impacts and actual results will vary.
Scenario
Positive
Outcomes Baseline
Negative
Outcomes
Total Program Funding Timeline (Year) 2039 2044 2061
Remainder of Page Intentionally Left Blank
25 November 18, 2024 Item 11
DEL MAR UNDERGROUNDING PROJECT – DEBT CAPACITY ANALYSIS AND FINANCIAL MODEL OCTOBER 16, 2024 PAGE 10
Discounted Cashflow:
Detailed in the table
to the right is the net
present value of the
cashflow
expenditures from
each Scenario.
Scenario 1 Scenario 2 Scenario 3
Pay-Go Pay-Go + Financing Pay-Go + Financing
2024 8,681,048 8,681,048 8,681,048
2025 2,110,070 4,104,891 3,595,033
2026 0 5,676,338 5,166,479
2027 0 1,571,073 1,445,323
2028 0 1,571,073 1,458,767
2029 18,926,424 1,571,073 1,994,959
2030 335,520 1,571,073 10,936,833
2031 6,302,097 1,571,073 2,158,957
2032 0 2,027,273 2,513,048
2033 0 2,043,240 2,543,995
2034 488,694 2,548,460 8,704,569
2035 505,798 23,381,066 3,492,135
2036 1,047,002 1,571,073 3,492,135
2037 23,363,410 1,571,073 3,586,403
2038 0 1,571,073 4,065,368
2039 0 1,571,073 4,085,431
2040 0 0 4,824,774
2041 0 0 9,250,373
2042 173,304 0 5,329,722
2043 801,043 179,369 5,764,337
2044 829,079 829,079 8,146,803
2045 1,382,861 858,097 5,737,961
2046 1,431,262 1,431,262 5,737,961
2047 57,984,811 1,481,356 5,737,961
2048 0 60,014,279 5,737,961
2049 0 0 5,737,961
2050 147,430 0 5,737,961
2051 896,511 152,590 5,737,961
2052 927,889 927,889 5,737,961
2053 1,920,730 960,365 5,737,961
2054 44,362,852 1,987,955 5,737,961
2055 175,101 46,090,653 4,676,746
2056 657,484 657,484 4,676,746
2057 680,496 680,496 4,676,746
2058 1,408,627 1,408,627 4,676,746
2059 27,179,625 27,179,625 4,676,746
2060 0 0 4,676,746
2061 0 0 4,109,120
2062 0 0 4,109,120
2063 0 0 4,109,120
2064 0 0 4,109,120
2065 0 0 2,245,825
2066 0 0 2,245,825
2067 0 0 2,245,825
2068 0 0 2,245,825
2069 0 0 2,245,825
2070 0 0 2,245,825
2071 0 0 2,245,825
2072 0 0 814,420
2073 0 0 814,420
2074 0 0 814,420
Total Cashflow Expenditures 202,719,168 207,441,099 221,277,096 Discount Rate 3.5% 3.5% 3.5%
Discounted Cashflow 103,129,906 104,304,445 112,773,907 Prior Project Expenditures* 2,393,285 2,393,285 2,393,285 Total Estimated Costs** 105,523,191 106,697,730 115,167,192 *Prior project expenditures are expenditures that are not in the cashflow analysis because such expenditures occurred prior to 2024, however, are included in the City's total Project cost of $105.6 million.
Prior project expenditures are not discounted.
**Estimated costs based on the analysis inputs, which may differ significantly over time.
Total Cashflow Expenditures ($)
26 November 18, 2024 Item 11
DEL MAR UNDERGROUNDING PROJECT – DEBT CAPACITY ANALYSIS AND FINANCIAL MODEL OCTOBER 16, 2024 PAGE 11
Findings
Based on Project cost estimates and projected Measure Q Revenue growth, the City’s ability to implement all Project phases will be dependent on available funds (including Measure Q, debt proceeds and interest earnings). The three scenarios illustrate that Project completion between 2039 and 2069 can be feasible depending on (1) growth and cost inflation assumptions and (2) the funding strategy (scenario) that is selected. NHA makes no representation on the appropriate scenario to implement without the City’s weighting of benefit for undergrounding sooner rather than later (excluding Project cost estimates).
Based on the scenarios evaluated, a funding strategy to complete the Project phases by 2044 can be viable using a combination of Measure Q Revenues and debt to accelerate the Projects (minimizing inflation). 27 November 18, 2024 Item 11
DEL MAR UNDERGROUNDING PROJECT – DEBT CAPACITY ANALYSIS AND FINANCIAL MODEL OCTOBER 16, 2024 PAGE 12
NHA Advisors, LLC is registered as a Municipal Advisor with the SEC and Municipal Securities Rulemaking Board (“MSRB”). As such, NHA Advisors, LLC has a Fiduciary duty to the public agency and must provide both a Duty of Care and a Duty of Loyalty that entails the following.
Duty of Care
a) exercise due care in performing its municipal advisory activities; b) possess the degree of knowledge and expertise needed to provide the public agency with informed advice; c) make a reasonable inquiry as to the facts that are relevant to the public agency’s determination as to whether to proceed with a course of action or that form the basis for any advice provided to the public agency; and d) undertake a reasonable investigation to determine that NHA Advisors, LLC is not forming any recommendation on materially inaccurate or incomplete information; NHA Advisors, LLC must have a reasonable basis for:
i. any advice provided to or on behalf of the public agency; ii. any representations made in a certificate that it signs that will be reasonably foreseeably relied upon by the public agency, any other party involved in the municipal securities transaction or municipal financial product, or investors in the public agency securities; and
iii. any information provided to the public agency or other parties involved in the municipal securities transaction in connection with the preparation of an official statement.
Duty of Loyalty
NHA Advisors, LLC must deal honestly and with the utmost good faith with the public agency and act in the public agency’s best interests without regard to the financial or other interests of NHA Advisors, LLC. NHA Advisors, LLC will eliminate or provide full and fair disclosure (included herein) to Issuer about each material conflict of interest (as applicable). NHA Advisors, LLC will not engage in municipal advisory activities with the public agency as a municipal entity, if it cannot manage or mitigate its conflicts in a manner that will permit it to act in the public agency’s best interests. 28 November 18, 2024 Item 11
1050 Camino Del Mar, Del Mar, CA 92014 | 858.755.9313 | www.delmar.ca.us November 18, 2024
NHA Advisors, LLC SENT VIA EMAIL
Attn: Craig Hill, Managing Principal
4040 Civic Center Drive, Suite 200
San Rafael, CA 94903
[email protected]
RE: TASK ORDER 2 – UTILITY UNDERGROUNDING PROJECT FINANCING ANALYSIS – 02.7000.7001
Dear Mr. Hill,
This Task Order (TO) is issued pursuant to the terms and conditions contained in the as-needed Professional Services Agreement between the City of Del Mar and NHA Advisors, LLC (Consultant), the term for which is July 8, 2024, to July 7, 2027, and the initial Task Order for Task 1 Utility Undergrounding Project Financing Analysis, dated July 8, 2024.
Consultant shall execute tasks related to Task Order 2 of the Undergrounding Program financing analysis as described in the Consultant’s proposal and included in the Task Order as Exhibit A.
The project costs for this task order are on a time-and-materials basis not-to-exceed $20,000, unless a task order amendment is authorized by the City Manager for extended consulting services. The work for this Task Order shall be completed within forty (40) calendar days from the date of execution by both parties.
The primary contact for this Task Order and invoicing is Monica Molina, Finance Manager, who can be reached at [email protected] and (858) 704-3641. Please sign and return a copy of this Task Order electronically through OneSpan, the City’s electronic document routing program.
Please contact Management Analyst Kseniia Izgarskaia at [email protected] or (858) 375-9560 with any questions about executing this Task Order Amendment.
Approved by: Accepted by:
City of Del Mar NHA Advisors, LLC
______________________________ ___________________________________ Ashley Jones Date Craig Hill Date
City Manager Managing Partner
cc: Martin Boyd, Principal Engineer
Monica Molina, Finance Manager/Treasurer
29 November 18, 2024 Item 11
Task Order 2– Task 1 – NHA Advisors
November 18, 2024
SCOPE OF WORK
TASK ORDER 2
Evaluation of Financing Options for Citywide Undergrounding Program The scope of work will include the following services:
• Evaluate and advise City on financing options and structure, including financing terms, debt service schedules, call provisions, covenants and method of sale (public or private) • Develop Financing 101 presentation materials describing debt structures, terminology, fiscal obligations and process
• Evaluate current market conditions for public offering and bank private placement and the impact to City’s potential debt payments (15, 20, and 30-years) • Assuming City consideration of a general fund secured financing structure, evaluate City real property assets for inclusion in financing
• As directed, prepare and present (2-3 in-person meetings) materials, including staff reports and presentations to City committee (Finance and Undergrounding) and City Council 30 November 18, 2024 Item 11
EXHIBIT A
31 November 18, 2024 Item 11
32 November 18, 2024 Item 11
FY2019 FY2020
REVENUE
Dist Tax (Measure Q) $ 2,154,000 $ 2,154,000 Financing Proceeds 2,530,000 1,304,000
TOTAL REVENUE $ 4,684,000 $ 3,458,000
PROJECT EXPENSES
STREETSCAPE $ 7,100,000 $ ‐
Downtown Streetscape
UNDERGROUNDING 424,500 2,504,000
Utility Undergrounding 20A
SHORES PARK 268,000 300,000
Shores Park Master Plan
DEBT SERVICE $ 89,007 $ 223,889
Loan/Debt Principal 44,732 114,085 Loan/Debt Interest 44,275 109,804 TOTAL EXPENSES $ 7,881,507 $ 3,027,889
NET REVENUE/(EXPENSES) $ (3,197,507) $ 430,111 RESERVE 2,387,690 14,333
SET ASIDE RESERVE (500,000)
Streetscape CIP Carryover 1,324,150
FISCAL YEAR END FUND BALANCE $ 14,333 $ 444,444 CITY OF DEL MAR
MEASURE Q FUND FORECAST
SEPTEMBER, 2018
EXHIBIT 1
33 November 18, 2024 Item 11
City of Del Mar
Undergrounding Project Summary
Scenario 1: Pay-Go Scenario 2: Finance X1A & 1B, Pay-Go Remaining Projects
Scenario 3: Financing All Projects to Accelerate
Development
PROJECT TIMELINE 35 Years
(Construction completed in 2059)
35 Years
(Construction completed in 2059)
20 Years
(Construction completed in 2044)
CONSTRUCTION YEAR & BORROWINGS
2024-2025: 1A
2028-2029: X1A
2030-2031: 1B
2036-2037: 2
2045-2047: 3
2053-2054: 4
2059: 5
2024-2025: 1A
2025-2026: X1A (Borrowing: $17.0M)
2027: 1B
2034-2035: 2
2046-2048: 3
2054-2055: 4
2059: 5
2024-2025: 1A
2025-2026: X1A (Borrowing #1: $17.0M)
2027:1B
2030-2031: 2 (Borrowing #2: $9.0M)
2034-2036: 3 (Borrowing #3 $30.0M)
2041-2042: 4 (Borrowing #4 $23.0M)
2044: 5 (Borrowing #5 $13.0M)
BASE PROJECT COST $105.6M $105.6M $105.6M
INFLATION COST ADJUSTMENT 99.5M $97.7M $37.9M
PROJECT FUNDING:
MEASURE Q RESERVES 205.1M $186.2M $51.6M
FINANCING:
Principal $17.0M $92.0M
Interest/Issuance cost $6.6M $80.1M
TOTAL FINANCING PAYOUT $0 $23.6M 172.1M
TOTAL PROJECT COST ESTIMATE $205.1M $209.8M $223.7M
NET PRESENT VALUE $105.5M $106.7M $115.2M
ANNUAL DEBT SERVICE PAYMENT
None 2025-2039: $1.6M 2025-2030: $1.1M
2031-2034: $1.6M
2035-2041: $3.5M
2042-2044: $4.9M
2045-2054: $5.7M
2055-2060: $4.7M
2061-2064: $4.1M
2065-2071: $2.2M
2072-2074: $0.8M
PROS
-No borrowing
-Lowest total project cost
-Minimal borrowing
-Debt service paid off in 2039
-Minimal interest expense
-Low total project cost
-Accelerated project timeline
-Lowest inflation cost adjustment
CONS
-Long project timeline
-Highest inflation cost adjustment
-Delay construction of X1A until 2028
-Delay construction of 1B until 2031
-Long project timeline
-High inflation cost adjustment
-Highest debt
-Highest loan interest expense
-Highest total project cost
-Debt service paid off in 2074
COST SUMMARY:
Base Project Cost $105.6M $105.6M $105.6M
Inflation Cost Adjustment $99.5M $97.7M $37.9M
Total $205.1M $203.3M $143.5M
Project paid with:
Measure Q Reserves $205.1M $186.2M $51.6M
Financing Payout* $0 $23.6M $172.1M
Total Project Cost $205.1M $209.8M $223.7M
*Includes Financing Cost
NOTE: Amounts on this Summary are based on current base project cost and assumptions. Project cost may change based on variable updates. 34 November 18, 2024 Item 11
City of Del Mar
Undergrounding Project Funding Analysis: 35-Year Funding Program Scenario 1: Pay-Go, Delay Projects until Cash is Available Project Timeline TEWA 1A X1A 1B 2 3 4 5
Project Start Year 2021 2021 2021 2023 2033 2042 2050 2055 Project End Year 2023 2025 2029 2031 2037 2047 2054 2059 Financing Years N/A N/A N/A N/A N/A N/A N/A N/A
Project Area TEWA 1A X1A 1B 2 3 4 5
Base Model Assumptions
Base Year 2024
Measure Q Growth (Annual) 2.50%
Reserves Annual Earnings Rate 2.00%
Annual Cost Inflation 0.00% 0.00% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% Project Cost Totals
Base Project Cost .9 M 10. M 17.8 M 5.5 M 16.4 M 28.6 M 17.3 M 9.1 M 105.6 M Inflation Cost Adjustment 0 0 3. M 1.4 M 9.1 M 34. M 31. M 21. M 99.5 M Total Project Cost .9M 10.M 20.7M 7.M 25.5M 62.6M 48.3M 30.1M 205.1M Project Financing Totals
Measure Q Reserves .9 M 10. M 20.7 M 7. M 25.5 M 62.6 M 48.3 M 30.1 M 205.1 M Outside Financing 0 0 0 0 0 0 0 0 -
Financing Cost 0 0 0 0 0 0 0 0 -
Total Project Cost .9 M 10. M 20.7M 7.M 25.5M 62.6M 48.3M 30.1M 205.1M Financing Assumptions
Bond Term (Years) 0 0 0 0 0 0 0 0
Interest Rate 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Est. Annual Debt Service 0 0 0 0 0 0 0 0
Base Project Cost 105.6 M
Inflation Cost Adjustment 99.5 M
Total 205.1 M
Measure Q Reserves 205.1 M
Outside Financing -
Total Project Cost 205.1 M
Net Present Value 105.5 M
35 November 18, 2024 Item 11
Scenario #1 - Pay Go
Revenue Growth 2.5%
Interest Earnings Rate 2.0%
Cost Inflation 3.5%
Projected
Measure Q
Revenue
NonUndergrounding
MQ Costs
Undergrounding
Costs
Debt
Financing
Annual Debt
Payment
Interest
Earned on
Reserves
Measure Q
Reserves
(Ending)
Beginning Bal .
2017-2023 18.46 -7.15 -2.39 . . .08 9.
2024 3.06 -.08 -8.68 . . .33 3.64
2025 3.5 -.08 -2.11 . . .09 5.04
2026 3.59 -.08 . . . .14 8.69
2027 3.68 -.08 . . . .21 12.5
2028 3.77 -.08 . . . .29 16.48
2029 3.86 -.08 -18.93 . . .18 1.52
2030 3.96 -.08 -.34 . . .07 5.14
2031 4.06 -.08 -6.3 . . .08 2.9
2032 4.16 -.08 . . . .1 7.08
2033 4.26 -.08 . . . .18 11.46
2034 4.37 -.08 -.49 . . .27 15.53
2035 4.48 -.08 -.51 . . .35 19.78
2036 4.59 -.08 -1.05 . . .43 23.68
2037 4.71 -.08 -23.36 . . .29 5.24
2038 4.82 -.08 . . . .15 10.14
2039 4.95 -.08 . . . .25 15.26
2040 5.07 -.08 . . . .36 20.61
2041 5.2 -.08 . . . .46 26.19
2042 5.33 -.08 -.17 . . .57 31.84
2043 5.46 -.08 -.8 . . .68 37.11
2044 5.6 -.08 -.83 . . .79 42.59
2045 5.74 -.08 -1.38 . . .89 47.76
2046 5.88 -.08 -1.43 . . 1. 53.13
2047 6.03 -.08 -57.98 . . .54 1.64
2048 6.18 -.08 . . . .09 7.84
2049 6.33 -.08 . . . .22 14.31
2050 6.49 -.08 -.15 . . .35 20.93
2051 6.65 -.08 -.9 . . .48 27.08
2052 6.82 -.08 -.93 . . .6 33.49
2053 6.99 -.08 -1.92 . . .72 39.21
2054 7.16 -.08 -44.36 . . .41 2.34
2055 7.34 -.08 -.18 . . .12 9.55
2056 7.53 -.08 -.66 . . .26 16.6
2057 7.71 -.08 -.68 . . .4 23.96
2058 7.91 -.08 -1.41 . . .54 30.93
2059 8.1 -.08 -27.18 . . .43 12.2
Totals -9.85 -205.11 . . 13.4
City of Del Mar
Undergrounding Financing
Cash Flow Analysis
(in millions)
36 November 18, 2024 Item 11
ID Task Name
1 UUD 1A
2 1A SDGE Prelim Design
3 1A Utility & Civil Design
4 1A Bidding & Contracting
5 1A Construction
6 1A City Construction
7 1A Utility Construction
8 UUD X1A
9 X1A SDGE Prelim Design
10 X1A Utility & Civil Design
11 X1A Bidding & Contracting
12 X1A Construction
13 X1A City Construction
14 X1A Utility Construction
15 UUD 1B
16 1B District Formation
17 1B SDGE Prelim Design
18 1B Utility & Civil Design
19 1B Bidding & Contracting
20 1B Construction
21 1B City Construction
22 1B Utility Construction
23 UUD 2
24 2 District Formation
25 2 SDGE Prelim Design
26 2 Utility & Civil Design
27 2 Bidding & Contracting
28 2 Construction
29 2 City Construction
30 2 Utility Construction
31 UUD 3
32 3 District Formation
33 3 SDGE Prelim Design
34 3 Utility & Civil Design
35 3 Bidding & Contracting
36 3 Construction
37 3 City Construction
38 3 Utility Construction
39 UUD 4
40 4 District Formation
41 4 SDGE Prelim Design
42 4 Utility & Civil Design
43 4 Bidding & Contracting
44 4 Construction
45 4 City Construction
46 4 Utility Construction
47 UUD 5
48 5 District Formation
49 5 SDGE Prelim Design
50 5 Utility & Civil Design
51 5 Bidding & Contracting
52 5 Construction
53 5 City Construction
54 5 Utility Construction
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060
37 November 18, 2024 Item 11
City of Del Mar
Undergrounding Project Funding Analysis: 35-Year Funding Program Scenario 2: Finance X1A & 1B, Pay-Go Remaining Projects Project Timeline TEWA 1A X1A 1B 2 3 4 5
Project Start Year 2021 2021 2021 2023 2031 2043 2051 2055 Project End Year 2023 2025 2026 2027 2035 2048 2055 2059 Financing Years N/A N/A 2025 2025 N/A N/A N/A N/A
Project Area TEWA 1A X1A 1B 2 3 4 5
Base Model Assumptions
Base Year 2024
Measure Q Growth (Annual) 2.50%
Reserves Annual Earnings Rate 2.00%
Annual Cost Inflation 0.00% 0.00% 0.00% 3.50% 3.50% 3.50% 3.50% 3.50% Project Cost Totals
Base Project Cost .9 M 10. M 17.8 M 5.5 M 16.4 M 28.6 M 17.3 M 9.1 M 105.6 M Inflation Cost Adjustment 0 0 0 .4 M 7.4 M 36.2 M 32.7 M 21. M 97.7 M Total Project Cost .9M 10.M 17.8M 5.9M 23.8M 64.8M 49.9M 30.1M 203.3M Project Financing Totals
Measure Q Reserves .9 M 10. M .8 M 5.9 M 23.8 M 64.8 M 49.9 M 30.1 M 186.2 M Outside Financing 0 0 17. M 0 0 0 0 0 17.M
Financing Cost 0 0 6.6 M 0 0 0 0 0 6.6M
Total Project Cost .9 M 10. M 24.3M 5.9M 23.8M 64.8M 49.9M 30.1M 209.8M Financing Assumptions
Bond Term (Years) 0 0 15 0 0 0 0 0
Interest Rate 0.00% 0.00% 4.15% 0.00% 0.00% 0.00% 0.00% 0.00% Est. Annual Debt Service 0 0 1.6M 0 0 0 0 0
Base Project Cost 105.6 M
Inflation Cost Adjustment 97.7 M
Total 203.3 M
Measure Q Reserves 186.2 M
Outside Financing 23.6 M
Total Project Cost 209.8 M
Net Present Value 106.7 M
38 November 18, 2024 Item 11
Scenario #2 - Finance X1A & 1B - Pay Go Remaining Projects Revenue Growth 2.5%
Interest Earnings Rate 2.0%
Cost Inflation 3.5%
FY
Projected
Measure Q
Revenue
NonUndergrounding
MQ Costs
Undergrounding
Costs
Debt
Financing
Annual Debt
Payment
Interest
Earned on
Reserves
Measure Q
Reserves
(Ending)
Beginning Bal .
2017-2023 18.46 -7.15 -2.39 . . .08 9.
2024 3.06 -.08 -24.48 17. . .33 4.84
2025 3.5 -.08 -2.53 . -1.57 .09 4.25
2026 3.59 -.08 -5.31 . -1.57 .05 .94
2027 3.68 -.08 . . -1.57 .04 3.01
2028 3.77 -.08 . . -1.57 .08 5.21
2029 3.86 -.08 . . -1.57 .13 7.55
2030 3.96 -.08 . . -1.57 .17 10.04
2031 4.06 -.08 . . -1.57 .23 12.68
2032 4.16 -.08 -.46 . -1.57 .27 15.01
2033 4.26 -.08 -.47 . -1.57 .32 17.48
2034 4.37 -.08 -.98 . -1.57 .37 19.59
2035 4.48 -.08 -21.81 . -1.57 .2 .82
2036 4.59 -.08 . . -1.57 .05 3.81
2037 4.71 -.08 . . -1.57 .11 6.98
2038 4.82 -.08 . . -1.57 .17 10.33
2039 4.95 -.08 . . -1.57 .24 13.87
2040 5.07 -.08 . . . .33 19.19
2041 5.2 -.08 . . . .44 24.75
2042 5.33 -.08 . . . .55 30.55
2043 5.46 -.08 -.18 . . .66 36.41
2044 5.6 -.08 -.83 . . .78 41.88
2045 5.74 -.08 -.86 . . .89 47.57
2046 5.88 -.08 -1.43 . . 1. 52.93
2047 6.03 -.08 -1.48 . . 1.1 58.51
2048 6.18 -.08 -60.01 . . .63 5.22
2049 6.33 -.08 . . . .17 11.65
2050 6.49 -.08 . . . .3 18.36
2051 6.65 -.08 -.15 . . .43 25.21
2052 6.82 -.08 -.93 . . .56 31.59
2053 6.99 -.08 -.96 . . .69 38.23
2054 7.16 -.08 -1.99 . . .82 44.15
2055 7.34 -.08 -46.09 . . .49 5.82
2056 7.53 -.08 -.66 . . .18 12.8
2057 7.71 -.08 -.68 . . .33 20.08
2058 7.91 -.08 -1.41 . . .47 26.97
2059 8.1 -.08 -27.18 . . .35 8.16
Totals -9.85 -203.27 17. -23.57 14.08
City of Del Mar
Undergrounding Financing
Cash Flow Analysis
39 November 18, 2024 Item 11
ID Task Name
1 UUD 1A
2 1A SDGE Prelim Design
3 1A Utility & Civil Design
4 1A Bidding & Contracting
5 1A Construction
6 1A City Construction
7 1A Utility Construction
8 UUD X1A
9 X1A SDGE Prelim Design
10 X1A Utility & Civil Design
11 X1A Bidding & Contracting
12 X1A Construction
13 X1A City Construction
14 X1A Utility Construction
15 UUD 1B
16 1B District Formation
17 1B SDGE Prelim Design
18 1B Utility & Civil Design
19 1B Bidding & Contracting
20 1B Construction
21 1B City Construction
22 1B Utility Construction
23 UUD 2
24 2 District Formation
25 2 SDGE Prelim Design
26 2 Utility & Civil Design
27 2 Bidding & Contracting
28 2 Construction
29 2 City Construction
30 2 Utility Construction
31 UUD 3
32 3 District Formation
33 3 SDGE Prelim Design
34 3 Utility & Civil Design
35 3 Bidding & Contracting
36 3 Construction
37 3 City Construction
38 3 Utility Construction
39 UUD 4
40 4 District Formation
41 4 SDGE Prelim Design
42 4 Utility & Civil Design
43 4 Bidding & Contracting
44 4 Construction
45 4 City Construction
46 4 Utility Construction
47 UUD 5
48 5 District Formation
49 5 SDGE Prelim Design
50 5 Utility & Civil Design
51 5 Bidding & Contracting
52 5 Construction
53 5 City Construction
54 5 Utility Construction
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060
40 November 18, 2024 Item 11
City of Del Mar
Undergrounding Project Funding Analysis: 20-Year Funding Program Scenario 3: Finance All Projects to Accelerate Development Project Timeline TEWA 1A X1A 1B 2 3 4 5
Project Start Year 2021 2021 2021 2023 2027 2031 2038 2040 Project End Year 2022 2025 2026 2027 2031 2036 2042 2044 Financing Years N/A N/A 2025 2025 2030 2034 2041 2044
Project Area TEWA 1A X1A 1B 2 3 4 5
Base Model Assumptions
Base Year 2024
Measure Q Growth (Annual) 2.50%
Reserves Annual Earnings Rate 2.00%
Annual Cost Inflation 0.00% 0.00% 0.00% 3.50% 3.50% 3.50% 3.50% 3.50% Project Cost Totals
Base Project Cost .9 M 10. M 17.8 M 5.5 M 16.4 M 28.6 M 17.3 M 9.1 M 105.6 M Inflation Cost Adjustment 0 0 0 .4 M 3.6 M 11.5 M 13.6 M 8.9 M 37.9 M Total Project Cost .9M 10.M 17.8M 5.9M 20.M 40.M 30.9M 18.M 143.5M Project Financing Totals
Measure Q Reserves .9 M 10. M .8 M 5.9 M 11. M 10. M 7.9 M 5. M 51.5 M Outside Financing 0 0 17. M 0 9. M 30. M 23. M 13. M 92.M Financing Cost 0 0 14.8 M 0 8. M 25.9 M 19.9 M 11.4 M 80.1M Total Project Cost .9 M 10. M 32.6M 5.9M 28.1M 65.9M 50.8M 29.4M 223.7M Financing Assumptions
Bond Term (Years) 0 0 30 0 30 30 30 30
Interest Rate 0.00% 0.00% 4.50% 0.00% 4.50% 4.50% 4.50% 4.50% Est. Annual Debt Service 0 0 1.1M 0 .6M 1.9M 1.4M .8M
Base Project Cost 105.6 M
Inflation Cost Adjustment 37.9 M
Total 143.5 M
Measure Q Reserves 51.5 M
Outside Financing 172.1 M
Total Project Cost 223.7 M
Net Present Value 115.2 M
41 November 18, 2024 Item 11
Scenario #3 - Finance all Remaining Districts
Revenue Growth 2.5%
Interest Earnings Rate 2.0%
Cost Inflation 3.5%
FY
Projected
Measure Q
Revenue
NonUndergrounding
MQ Costs
Undergrounding
Costs
Debt
Financing
Annual
Debt
Payment
Interest
Earned on
Reserves
Measure Q
Reserves
(Ending)
Beginning Bal .
2017-2023 18.46 -7.15 -2.39 . . .08 9.
2024 3.06 -.08 -24.48 17. . .33 4.84
2025 3.5 -.08 -2.53 . -1.06 .1 4.76
2026 3.59 -.08 -5.31 . -1.06 .07 1.98
2027 3.68 -.08 -.38 . -1.06 .06 4.19
2028 3.77 -.08 -.4 . -1.06 .11 6.53
2029 3.86 -.08 -.93 . -1.06 .15 8.48
2030 3.96 -.08 -18.88 9. -1.06 .1 1.52
2031 4.06 -.08 -.53 . -1.63 .05 3.4
2032 4.16 -.08 -.88 . -1.63 .08 5.05
2033 4.26 -.08 -.92 . -1.63 .12 6.82
2034 4.37 -.08 -37.08 30. -1.63 .09 2.5
2035 4.48 -.08 . . -3.49 .06 3.47
2036 4.59 -.08 . . -3.49 .08 4.58
2037 4.71 -.08 -.09 . -3.49 .1 5.73
2038 4.82 -.08 -.57 . -3.49 .12 6.53
2039 4.95 -.08 -.59 . -3.49 .14 7.45
2040 5.07 -.08 -1.33 . -3.49 .15 7.77
2041 5.2 -.08 -28.76 23. -3.49 .11 3.76
2042 5.33 -.08 -.41 . -4.92 .07 3.75
2043 5.46 -.08 -.84 . -4.92 .07 3.45
2044 5.6 -.08 -16.22 13. -4.92 .04 .86
2045 5.74 -.08 . . -5.74 .02 .8
2046 5.88 -.08 . . -5.74 .02 .88
2047 6.03 -.08 . . -5.74 .02 1.11
2048 6.18 -.08 . . -5.74 .03 1.5
2049 6.33 -.08 . . -5.74 .04 2.06
2050 6.49 -.08 . . -5.74 .05 2.78
2051 6.65 -.08 . . -5.74 .06 3.68
2052 6.82 -.08 . . -5.74 .08 4.77
2053 6.99 -.08 . . -5.74 .11 6.05
2054 7.16 -.08 . . -5.74 .13 7.54
2055 7.34 -.08 . . -4.68 .18 10.3
2056 7.53 -.08 . . -4.68 .23 13.31
2057 7.71 -.08 . . -4.68 .3 16.57
2058 7.91 -.08 . . -4.68 .36 20.08
2059 8.1 -.08 . . -4.68 .44 23.87
2060 8.31 -.08 . . -4.68 .51 27.94
2061 8.51 -.08 . . -4.11 .6 32.87
City of Del Mar
Undergrounding Financing
Cash Flow Analysis
42 November 18, 2024 Item 11
FY
Projected
Measure Q
Revenue
NonUndergrounding
MQ Costs
Undergrounding
Costs
Debt
Financing
Annual
Debt
Payment
Interest
Earned on
Reserves
Measure Q
Reserves
(Ending)
2062 8.73 -.08 . . -4.11 .7 38.12
2063 8.94 -.08 . . -4.11 .81 43.69
2064 9.17 -.08 . . -4.11 .92 49.59
2065 9.4 -.08 . . -2.25 1.06 57.73
2066 9.63 -.08 . . -2.25 1.23 66.27
2067 9.87 -.08 . . -2.25 1.4 75.23
2068 10.12 -.08 . . -2.25 1.58 84.61
2069 10.37 -.08 . . -2.25 1.77 94.43
2070 10.63 -.08 . . -2.25 1.97 104.72
2071 10.9 -.08 . . -2.25 2.18 115.48
2072 11.17 -.08 . . -.81 2.41 128.17
2073 11.45 -.08 . . -.81 2.67 141.4
2074 11.74 -.08 . . -.81 2.94 155.18
Totals -10.97 -143.53 92. -172.14 27.11
43 November 18, 2024 Item 11
ID Task Name 1 UUD 1A 2 1A SDGE Prelim Design 3 1A Utility & Civil Design 4 1A Bidding & Contracting 5 1A Construction 6 1A City Construction 7 1A Utility Construction 8 UUD X1A 9 X1A SDGE Prelim Design 10 X1A Utility & Civil Design
11 X1A Bidding & Contracting
12 X1A Construction
13 X1A City Construction
14 X1A Utility Construction
15 UUD 1B
16 1B District Formation
17 1B SDGE Prelim Design
18 1B Utility & Civil Design
19 1B Bidding & Contracting
20 1B Construction
21 1B City Construction
22 1B Utility Construction
23 UUD 2
24 2 District Formation
25 2 SDGE Prelim Design
26 2 Utility & Civil Design
27 2 Bidding & Contracting
28 2 Construction
29 2 City Construction
30 2 Utility Construction
31 UUD 3
32 3 District Formation
33 3 SDGE Prelim Design
34 3 Utility & Civil Design
35 3 Bidding & Contracting
36 3 Construction
37 3 City Construction
38 3 Utility Construction
39 UUD 4
40 4 District Formation
41 4 SDGE Prelim Design
42 4 Utility & Civil Design
43 4 Bidding & Contracting
44 4 Construction
45 4 City Construction
46 4 Utility Construction
47 UUD 5
48 5 District Formation
49 5 SDGE Prelim Design
50 5 Utility & Civil Design
51 5 Bidding & Contracting
52 5 Construction
53 5 City Construction
54 5 Utility Construction
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045
44 November 18, 2024 Item 11
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:
TO: Honorable Mayor and City Councilmembers
FROM: Sarah Krietor, Administrative Services Manager
Wendy House, Assistant City Attorney
Via Ashley Jones, City Manager
DATE: November 18, 2024
SUBJECT: City Councilmember Vacancy
REQUESTED ACTION/RECOMMENDATION:
Staff recommends the City Council consider adopting Resolutions (Attachments A-C) calling for an all-mail ballot special election on May 6, 2025; or take an alternative action as described in the Alternative Options section of this agenda report.
BACKGROUND:
The Del Mar City Council is comprised of five Councilmembers, each elected to a four-year term. Councilmembers serve at-large, meaning there are no Council districts in Del Mar.
Effective September 24, 2024, there is one vacancy on the Council due to the resignation of Dwight Worden, whose term was scheduled to expire in December 2026.
In accordance with State law, the City Council shall make an appointment or call for a special election to fill the vacancy within 60 days of the effective date of the vacancy, which is Saturday, November 23, 2024 (California Government Code Section 36512).
On September 9, 2024, the City Council reviewed options for filling the vacancy and voted to proceed with an appointment process similar to what the City Council undertakes when making appointments to the Planning Commission or Design Review Board.
Unable to break 2-2 tie votes on October 7 and October 21, 2024, to appoint a candidate to fill the vacancy, the Council directed staff to prepare the resolutions necessary for calling a vote-by-mail (all-mail ballot) special election for Council consideration at its November 18, 2024 meeting.
To allow the City Council maximum flexibility to fill the vacancy, staff prepared the attached Resolutions calling for an all-mail ballot special election as directed by the Council, and has also briefly described the alternative options that remain available to the Council for consideration.
DISCUSSION/ANALYSIS:
All-Mail Ballot Special Municipal Election – May 6, 2025 (Proposed Date) On October 21, 2024, City Council directed staff to return with the resolutions necessary for calling an all-mail ballot special election at the earliest opportunity, which must be held not 1 November 18, 2024 Item 12
City Council Agenda Report
City Councilmember Vacancy
November 18, 2024
less than 114 days from the call of the special election (Government Code Section 36512).
The California Elections Code also requires that the election: (i) be held on a Tuesday; (ii) not be held the day before, the day of, or the day after a State holiday (or County holiday per the County of San Diego Registrar of Voters); (iii) not be held on the same date as a Statewide primary or general election; and (iv) not be consolidated with any other election.
Other considerations for setting an election date include: (i) the requirement to publish a Notice of Election in English and foreign language papers (Vietnamese, Chinese, Spanish, and Filipino), which must be published in the City 113-127 days before the election (Elections Code Section 12101); and (ii) the timeframe of the candidate filing period, which must take place between 88-113 days before the election (Elections Code Section 10220).
Staff has confirmed that the County of San Diego Registrar of Voters (ROV) can facilitate an all-mail ballot special election on any date that complies with the above requirements. The date of the all-mail ballot special election will not have an impact on the cost of the election.
The earliest opportunity (not less than 114 days from the call of the election) to hold an allmail ballot special election to fill the vacancy under Government Code Section 36512 is Tuesday, March 18, 2024. However, given the additional Elections Code requirements and considerations described above, if the City Council wishes to call for an all-mail ballot special election, staff recommends the election date be set for Tuesday, May 6, 2025.
Holding the special election on May 6, 2025, would allow staff adequate time to prepare, translate, and publish the required Notice of Election and finalize candidate filing materials.
It also prevents the candidate filing period from conflicting with City and/or County holiday closures and ensures that the candidates are not disadvantaged by any out of town travel they may have planned during the candidate filing period if it were to coincide with the holidays.
An all-mail ballot special election facilitated by the ROV is estimated by the ROV to cost between $150,000-$225,000, an amount that would entirely be funded by the City.
Resolutions Required for an All-Mail Ballot Election
Attachment A to this agenda report is a resolution calling for an all-mail ballot special election for the purpose of electing one member of the City Council to fill the vacancy for the remainder of the term ending in December 2026. The election will be conducted under the provisions of the law relating to general law cities because Del Mar’s Charter does not include specific provisions regarding the process for conducting regular or special elections in the City.
Attachment B to this agenda report is a resolution requesting that the ROV conduct the allmail ballot special election, and further states that the City will be responsible for reimbursing the County for all costs related to conducting the City’s special election.
Attachment C to this agenda report is a resolution adopting regulations for candidates’ statements required for an all-mail ballot special election. This Resolution notes that a candidate may choose to submit a candidate statement, and further describes the limitations and/or regulations for such a candidate statement. Such limitations require that the candidate statement be limited to 200 words, and be translated into Chinese, Spanish, Tagalog, and Vietnamese (per State law). Additionally, the Resolution specifies that the cost of the 2 November 18, 2024 Item 12
City Council Agenda Report
City Councilmember Vacancy
November 18, 2024
translations, including printing, handling, and mailing of the candidate statements, must be paid in advance by the candidate.
Alternative Options
As an alternative to calling for an all-mail ballot special election to fill the vacancy, the Council may consider taking one of the following actions on or before the November 23, 2024, deadline as described above.
Call for an In-Person Special Election – November 4, 2025 The Council could vote to schedule a special City Council meeting on or before November 23, 2024, to adopt Resolutions calling for an in-person and mail-ballot special election, which, in accordance with Elections Code Section 1000, would be held on November 4, 2025. The cost to hold a special election on this date would be higher than an all-mail ballot special election as there are no other cities in San Diego that will be holding an election in 2025, so the estimated $250,000 cost would be entirely borne by City and there is more involved with holding an in-person and mail-ballot special election, which is Del Mar’s normal practice.
Appointment
The Council also has the option to fill the vacancy by appointment on or before November 23, 2024. There are no established City procedures for filling a Councilmember vacancy; however, the Council previously directed staff to follow a similar procedure as the City Council undertakes when making appointments to the Planning Commission and Design Review Board. To be appointed to the Council, an applicant requires an affirmative vote from a majority of those Councilmembers present and voting. Most recently, on October 21, 2024, the Council considered applications received from three candidates: Nicole Gesher, Jas Grewal, and Jeff Sturgis, but were unable to reach majority agreement on an appointment.
Take No Action
If no appointment is made by November 23, 2024, the Council seat could remain vacant and filled at the next regularly scheduled election in November 2026. However, this approach could expose the City to legal risk.
FISCAL IMPACT:
If the Council affirmatively votes to call for an all-mail ballot special election, staff will recommend an amendment to the Fiscal Year 2024-2025 Operating and Capital Budget as part of the Mid-Year Budget process to allocate $225,000 to the Clerk Contractual Services Account (01.530.3200).
ATTACHMENTS:
Attachment A – Resolution calling for an all-mail ballot special election Attachment B – Resolution requesting the County ROV provide election services to the City Attachment C – Resolution establishing regulations for candidate statements 3 November 18, 2024 Item 12
RESOLUTION NO. 2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL
MAR, CALIFORNIA, CALLING FOR AND GIVING NOTICE OF
THE HOLDING OF AN ALL-MAIL BALLOT SPECIAL MUNICIPAL
ELECTION TO BE HELD ON TUESDAY, MAY 6, 2025, TO FILL A
VACANCY ON THE CITY COUNCIL REQUIRED BY THE
PROVISION OF THE LAWS OF THE STATE OF CALIFORNIA
RELATED TO GENERAL LAW CITIES
WHEREAS, a vacancy in the office of City Councilmember was created by the resignation of former Councilmember Dwight Worden, effective September 24, 2024; and WHEREAS, the term of the office in which the vacancy occurs ends in December 2026; and
WHEREAS, under the provisions of the laws relating to general law cities in the State of California, which have been adopted by the City of Del Mar pursuant to its Charter, an all-mail ballot special municipal election shall be held on Tuesday, May 6, 2025, for the purpose of filling one (1) City Councilmember vacancy.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DEL MAR, CALIFORNIA, AS FOLLOWS:
SECTION 1. That pursuant to the requirements of the laws of the State of California relating to general law cities and the City of Del Mar pursuant to its Charter, there is called and ordered to be held in the City of Del Mar, California, on Tuesday, May 6, 2025 (Election Day), an all-mail ballot special municipal election for the purpose of electing one (1) Councilmember for the term of office in which the vacancy was created by the resignation of former Councilmember Dwight Worden, which ends in December 2026.
SECTION 2. That the ballots to be used at the election shall be in the form and content as required by law.
SECTION 3. That the Administrative Services Manager/City Clerk is authorized, instructed and directed to coordinate with the San Diego County Registrar of Voters/Elections Department to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.
SECTION 4. That pursuant to the California Elections Code, said all-mail ballot special municipal election shall be conducted by all-mail ballot, and shall be conducted pursuant to Chapter 2 of Division 4 (commencing with Section 4100) of the California Elections Code, only insofar as required by law. Notwithstanding Elections Code Section 4103, ballots cast in this special municipal election shall be returned to the County of San Diego Registrar of Voters no later than 8:00 p.m. on Election Day in order to be counted. 4 November 18, 2024 Item 12
Resolution No. 2024-XX
Ballots that are postmarked on Election Day and received no later than seven (7) days following Election Day will also be counted.
SECTION 5. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.
SECTION 6. That notice of the time and place of holding the election is given and the Administrative Services Manager/City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.
SECTION 7. That the City Council authorizes the San Diego County Registrar of Voters to administer said election, and recognizes that additional costs will be incurred by the County of San Diego by reason of this request and agrees to reimburse the County of San Diego for any costs associated with the all-mail ballot special municipal election.
SECTION 8. That the Administrative Services Manager/City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Del Mar, California at the Regular Meeting held this 18th day of November, 2024. ___________________________
Dave Druker, Mayor
City of Del Mar
APPROVED AS TO FORM:
________________________
Leslie E. Devaney, City Attorney
City of Del Mar
5 November 18, 2024 Item 12
Resolution No. 2024-XX
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 18th day of November, 2024, by the following vote:
AYES:
NOES:
RECUSE:
ABSENT:
ABSTAIN:
_________________________________
Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
6 November 18, 2024 Item 12
RESOLUTION NO. 2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL
MAR, CALIFORNIA, REQUESTING THAT THE BOARD OF
SUPERVISORS OF THE COUNTY OF SAN DIEGO RENDER
SPECIFIC SERVICES TO THE CITY OF DEL MAR RELATING TO
THE CONDUCT OF AN ALL-MAIL BALLOT SPECIAL MUNICIPAL
ELECTION TO BE HELD ON TUESDAY, MAY 6, 2025
WHEREAS, on November 18, 2024, the City Council of the City of Del Mar adopted Resolution No. 2024-XX, calling for an all-mail ballot special municipal election to be held on Tuesday, May 6, 2025, for the purpose of the election of one (1) City Councilmember, for the term of office in which a vacancy was created by the resignation of former Councilmember Dwight Worden, which ends in December 2026; and WHEREAS, pursuant to the provisions of California Elections Code Section 4004, this election will be conducted wholly by mail ballot; and WHEREAS, it is desirable that the all-mail ballot special municipal election be consolidated and that the County Elections Department of the County of San Diego canvass the returns of the all-mail ballot special municipal election.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DEL MAR, CALIFORNIA, AS FOLLOWS:
SECTION 1. That pursuant to the requirements of Elections Code Section 10002, the Board of Supervisors of the County of San Diego is hereby requested to consent and agree to permit the County Elections Official to render specific services to the City of Del Mar related to the conduct of the all-mail ballot special municipal election. Further pursuant to Elections Code Section 10002, the City Manager, or her designee, is hereby authorized to reimburse the County for the actual costs incurred in conducting the election upon receipt of a bill stating the amount due as determined by the County Elections Official.
SECTION 2. That the Administrative Services Manager/City Clerk is authorized, instructed and directed to coordinate with the San Diego County Registrar of Voters to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the all-mail ballot special municipal election.
SECTION 2. That the County Registrar of Voters is authorized to canvass the returns of the all-mail ballot special municipal election.
SECTION 3. That the Board of Supervisors is requested to issue instructions to the County Registrar of Voters to take any and all steps necessary for the holding of the all-mail ballot special municipal election, including the procurement and furnishing of any and all official ballots, notices, printed matter and all supplies, equipment and 7 November 18, 2024 Item 12
Resolution No. 2024-XX
paraphernalia that may be necessary in order to properly and lawfully conduct said election, with the exception that the Administrative Services Manager/City Clerk of the City of Del Mar shall cause the publication of all notices that are indicated as the responsibility of the City Clerk in the Election Calendar for said election.
SECTION 4. That the City of Del Mar recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for those costs.
SECTION 5. That the County of San Diego shall be reimbursed in full for the services performed by the Registrar of Voters on behalf of the City of Del Mar upon presentation of a bill therefore, and that the City agrees to indemnify and hold harmless the County, its officers, agents and employees from expense or liability, including reasonable attorneys’ fees, as the result of an election contest arising after conduct of the election, so long as the basis for any such claim arises from the conduct of the City or as a result of the reasonable reliance by the County upon information provided by the City.
SECTION 6. That the Administrative Services Manager/City Clerk is hereby directed to file a certified copy of this Resolution with the Board of Supervisors and the San Diego County Registrar of Voters.
SECTION 7. That the Administrative Services Manager/City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Del Mar, California, at the Regular Meeting held this 18th day of November, 2024. ________________________
Dave Druker, Mayor
City of Del Mar
APPROVED AS TO FORM:
______________________________
Leslie E. Devaney, City Attorney
City of Del Mar
8 November 18, 2024 Item 12
Resolution No. 2024-XX
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 18th day of November 2024, by the following vote:
AYES:
NOES:
RECUSE:
ABSENT:
ABSTAIN:
________________________________
Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
9 November 18, 2024 Item 12
RESOLUTION NO. 2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL
MAR, CALIFORNIA, ADOPTING REGULATIONS FOR
CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO
CANDIDATES’ STATEMENTS SUBMITTED TO THE VOTERS AT
AN ALL-MAIL BALLOT SPECIAL MUNICIPAL ELECTION TO BE
HELD ON TUESDAY, MAY 6, 2025
WHEREAS, Section 13307 of the Elections Code of the State of California provides that the governing body of any local agency may adopt regulations pertaining to materials prepared by any candidate for a municipal election, including costs of the candidates’ statements.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DEL MAR, CALIFORNIA, AS FOLLOWS:
SECTION 1. GENERAL PROVISIONS. That pursuant to Section 13307 of the Elections Code of the State of California, each candidate for elective office to be voted for at an all-mail ballot special municipal election to be held in the City of Del Mar on May 6, 2024, may prepare a candidate’s statement on an appropriate form provided by the Administrative Services Manager/City Clerk. The statement may include the name, age and occupation of the candidate and a brief description of no more than two hundred (200) words of the candidate's education and qualifications expressed by the candidate himself or herself. The statement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations. The statement shall be filed in typewritten form in the office of the Administrative Services Manager/City Clerk at the time the candidate's nomination papers are filed. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. on the next working day after the close of the nomination period.
SECTION 2. FOREIGN LANGUAGE POLICY. Pursuant to the Federal Voting Rights Act, candidate’s statements will be translated into all languages required by the County of San Diego. The County is required to translate candidate’s statements into Chinese, Spanish, Filipino and Vietnamese. The County will print and mail sample ballots and candidate’s statements to all registered Del Mar voters. Sample ballots in Chinese, Spanish, Filipino and Vietnamese will only be mailed to those voters who are on the County voter files as having requested a sample ballot in a particular language. The County will make the sample ballots and candidate’s statements in the required languages available at any polling places, on the County’s website, and in the City Election Official’s office.
SECTION 3. PAYMENT. The candidate shall be required to pay for the cost of translating the candidate’s statement into any required foreign language as specified in Section 2 above pursuant to Federal and/or State law. The candidate shall be required to 10 November 18, 2024 Item 12
Resolution No. 2024-XX
pay for the cost of printing the candidate’s statement in English and in any foreign language, as specified in Section 2 above, in the main voter pamphlet.
The Administrative Services Manager/City Clerk or County of San Diego Registrar of Voters shall estimate the total cost of printing, handling, translating, and mailing the candidate’s statements filed pursuant to this section, including costs incurred as a result of complying with the Voting Rights Act of 1965 (as amended), and require each candidate filing a statement to pay in advance to the local agency his or her estimated pro rata share as a condition of having his or her statement included in the voter's pamphlet. In the event the estimated payment is required, the estimate is just an approximation of the actual cost that varies from one election to another election and may be significantly more or less than the estimate, depending on the actual number of candidates filing statements. Accordingly, the Administrative Services Manager/City Clerk is not bound by the estimate, and may, on a pro rata basis, bill the candidate for additional actual expenses or refund any excess paid depending on the final actual costs. In the event of underpayment, the Administrative Services Manager/City Clerk will require the candidate to pay the balance of the cost incurred. In the event of overpayment, the Administrative Services Manager/City Clerk shall prorate the excess amount among the candidates and refund the prorated excess amount paid to each candidate within thirty (30) days of the election.
SECTION 4. MISCELLANEOUS. The Administrative Services Manager/City Clerk shall comply with all recommendations and standards set forth by the California Secretary of State regarding occupational designations and other matters relating to elections.
SECTION 5. ADDITIONAL MATERIALS. No candidate will be permitted to include additional materials in the sample ballot package.
SECTION 6. That the Administrative Services Manager/City Clerk shall provide each candidate, or the candidate's representative, a copy of this Resolution at the time nominating petitions are issued.
SECTION 7. That all previous Resolutions establishing Council policy on payment for candidates’ statements are repealed.
SECTION 8. That this Resolution shall apply only to the all-mail ballot special municipal election to be held in Del Mar on May 6, 2025, and shall then be repealed.
SECTION 9. That the Administrative Services Manager/City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
11 November 18, 2024 Item 12
Resolution No. 2024-XX
PASSED, APPROVED AND ADOPTED by the City Council of the City of Del Mar, California, at the Regular Meeting held this 18th day of November, 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 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 18th of November 2024, by the following vote:
AYES:
NOES:
RECUSE:
ABSENT:
ABSTAIN:
_________________________________
Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
12 November 18, 2024 Item 12
Oceanside & Vista Enrollment
Stats
5 City # of Eligible
Customers
# of OptDowns to
50%
Renewable
# of OptUps to
100%
Renewable
# of OptOuts
Participation
Rate
Oceanside 69,422 186 68 3,689 94.7%
Vista 37,230 78 266 1,509 96.0%
TOTAL 106,652 264 344 5,198 95.1%
1 November 18, 2024 Item X-A
2025 Rates in the October Update*
19 * These will change twice more between now and January 1.
Vintage Current
(2024)
October Update
(2025)
Increase/
(Decrease) Cost/Credit (-)
Bundled Customer
Generation + PCIA $0.15017/kWh $0.15027/kWh $0.00010/kWh 15.03 cents/kWh Solana Beach PCIA
(Vintage 2017) $0.00689/kWh $0.00061/kWh ($0.00628)/kWh 0.06 cents/kWh Carlsbad & Del Mar PCIA
(Vintage 2020) ($0.00073)/kWh ($0.02161)/kWh ($0.02088)/kWh -2.16 cents/kWh Escondido & San Marcos
PCIA (Vintage 2022) $002815/kWh ($0.01909)/kWh ($0.04363)/kWh -1.91 cents/kWh Oceanside & Vista PCIA
(Vintage 2023) $0.00684/kWh ($0.03679)/kWh ($0.04363)/kWh -3.68 cents/kWh 2 November 18, 2024 Item X-A
City of Del Mar
Council Liaison Report
TO: Honorable Mayor and City Council Members
FROM: Councilmember Tracy Martinez
DATE: November 14, 2024
Parks and Rec -November 13,2024
Carol Kerridge precented the proposal of the Native American Plaque. This will go to the City Council and JPA. It is proposed to be placed on the Grand Ave Bridge. She has been consulting with the Kumeyaay regarding wording. The council will have this presented to them in the near future for approval.
Parks and Recreation: The sub tree committee have identified places for the remaining 40 trees that remain from the anniversary tree planting goal by Del mar Foundation. 25 have been planted so far (17 on city property and 8 on private property). These identified planting spots will go through the city process before planting takes place.
Arlene Prater was elected as the new chair and Ann Feeney as vice chair.
October NCTD Update
The Board received an update on System Ridership Trends: The North County Transit District (NCTD) Board of Directors (Board) received an update on fiscal year (FY) 2024 systemwide ridership trends. Systemwide ridership totaled over 7.7 million boardings in FY2024 (July 1, 2023 – June 30, 2024). Total ridership increased across all NCTD modes between FY 2023 and FY 2024. BREEZE and SPRINTER ridership increased 8%, COASTER ridership increased 5%, LIFT ridership increased 13%, and FLEX ridership increased 26%. NCTD’s micro transit service NCTD+ has now surpassed 3,000 total boardings since service launch on June 10, 2024. Ridership increases occurred throughout the NCTD system and particularly on modes that service middle and high schools. This was compared to pre-pandemic numbers (2019). I requested that future ridership data include a ten-year comparison. CEO, Shawn Donaghy agreed to do so.
SANDAG Regional Planning November 1,2024
Smart Growth Incentive Program (SGIP)- The TransNet Extension Ordinance funds several competitive grant programs that help implement the SANDAG Regional Plan, including the Smart Growth Incentive Program. The SGIP provides funding to the region’s 18 cities and the County of San Diego for transportation-related infrastructure and planning projects that catalyze compact, mixed-use development focused near public transit, jobs, services, and public facilities to maximize the use of existing infrastructure, preserve open space and natural resources, and increase housing and transportation 1 November 18, 2024 Items X-B,F,J; XI-J
City Council Liaison Report
November 14, 2024
choices around the region. Since 2009, the SGIP has invested approximately $60 million in planning and capital projects throughout our region. Funds can be used for:
Planning: Curb management plans, specific or area plans, transit-oriented development plans, complete streets plans or policies, rezoning or zoning updates, Program-level environmental clearance, density bonus ordinance, etc.
Capital: Updating housing supportive infrastructure, bike and pedestrian infrastructure enhancements, traffic calming infrastructure such as roundabouts, streetscape or placemaking enhancements for pedestrians, projects listed in CAPs as applicable, etc.
Climate Action Plan: New or updates to existing climate action plans and GHG reduction plans.
Maximum Award
Planning $150,000- $1,000,000
Capital $500,000-$3,500,000
Climate Action Plan $150,000 $400,000
SANDAG is developing a Comprehensive Climate Action Plan (CCAP) to serve as a longterm vision for reducing greenhouse gas (GHG) emissions in the region, with a focus on the benefits to environmental justice communities. The CCAP is being prepared in coordination with the 2025 Regional Plan and is the second deliverable to be completed under a planning grant from the U.S. Environmental Protection Agency (EPA) through the Climate Pollution Reduction Grant (CPRG) program. The CCAP will expand on the regional Priority Climate Action Plan (PCAP) which was presented to the RPC in May 2024. This winter, SANDAG will seek input on the proposed GHG reduction measures and conduct community outreach with CBO partners. As CCAP components are drafted, staff will return to the RPC to provide updates and seek feedback. The CCAP will be coordinated with the 2025 Regional Plan and must be completed and submitted to the EPA by December 2025.
CSA-17 November 12,2024
Budget and Financial update provided real time on Dashboard. The Budget subcommittee which I serve on has asked CSA-17 to write a letter to the Board of Supervisors for a rate increase to align with other agencies. This is needed due to the increase in operating expenses and decrease in revenue. This should go to the BOD in April.
Lifeguards gave their annual report- this included Del Mar, Solana Beach and Encinitas.
This included overview of staff, equipment, rescues, outreach, training.
County Reported shortage on IV fluid due to Baxter plant being impacted by hurricane.
New drones are being used by first responders for a variety of reasons including: search and rescue, ocean surveillance, fire assessment.
Four new fire department new hires, one will be stationed in Del Mar.
Increase in 24hr ambulance 232(RSF) coverage has been beneficial in decreasing other ambulances from having to leave their area to cover calls. This went live on April 1 st. They
have 340 calls after 10pm.
2 November 18, 2024 Items X-B,F,J; XI-J