Table of Contents
2-3-2025 Regular Meeting Agenda.pdf
Item 1 - Minutes.pdf
Item 2 - List of Demands.pdf
Item 4 - 2025 Legislative Policy Guidelines.pdf
Item 5 - Janitorial Services Agreement Amendment.pdf
Item 6 - 2025 City Council Goal Setting Workshop Preperations.pdf Item 7 - EP24-106 and EP24-107 Final.pdf
Item 8 - UP Financing Options.pdf
Item 9 - Reaffirm Final Investigative Report.pdf
Item XI - E - Council Liaison Report Template Martinez February 3, 2025.pdf 2 8
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Del Mar City Council Meeting Agenda
City of Del Mar, Town Hall
1050 Camino del Mar, Del Mar, California
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us Civility Works: The Del Mar Code of Civil Discourse: Together we will promote inclusion; listen to understand; show respect; be clear and fair; and focus on the issue.
Regular Meeting
Monday, February 3, 2025 at 4:30 PM
Public Participation/Comment: Members of the public can participate in City Council meetings in-person or via written comment (Red Dot). Anyone may address the City Council for up to three minutes, at the Mayor’s discretion, on items on the agenda.
Members of the public wishing to speak on items not on the agenda may do so under Public Oral Communications. Agenda items may be addressed in any order at the discretion of the Mayor. When addressing the Council, please state your name for the record. Any electronic presentations must be received before 12 p.m. on the date of the Council meeting. No PowerPoint presentations can be loaded during the meeting.
In-Person Participation: Please submit a completed “Speaker Slip”, including the item number you wish to speak on, to the City Clerk prior to the Mayor announcing the agenda item. The forms are located near the door at the rear of the Meeting Room. When called to speak, please approach the podium and state your name for the record.
Written Comments: Members of the public can participate in the meeting by submitting a written red dot comment via email to [email protected]. The deadline to submit written comments is 12 p.m. on the day of the meeting and the subject line of your email should clearly state the agenda item you are commenting on.
Remote Participation: Due to technical issues, remote participation will not be offered at this City Council meeting.
Viewing the Meeting and Access to Agenda Materials: Members of the public can watch the meeting live on the City’s website at: http://delmar.12milesout.com/Video/Live and on Cable TV Spectrum Ch. 24, AT&T Ch. 99 starting at 4:30 PM. Agenda materials and communications from the public on agenda items, “Red Dots”, are available on the City’s website:
http://www.delmar.ca.us/AgendaCenter and a hard copy of the agenda materials are available at Del Mar City Hall and the Del Mar Library during their business hours.
Assistance for Persons with Disabilities: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Administrative Services Department at 1050 Camino del Mar or by calling (858) 755-9313.
Notification of at least 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
Terry Gaasterland
Mayor
Tracy Martinez
Deputy Mayor
Dan Quirk
Council Member
John W. Spelich
Council Member
Ashley Jones
City Manager
Leslie E. Devaney
City Attorney
Sarah Krietor
Administrative Services
Manager/City Clerk
Del Mar City Council Regular Meeting February 3, 2025
Agenda Page 2
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us I. CALL TO ORDER/ROLL CALL
II. CITY ATTORNEY CLOSED SESSION REPORT
III. PLEDGE OF ALLEGIANCE
IV. PUBLIC ORAL COMMUNICATIONS
Each person wishing to speak before the City Council on any matter not on the agenda shall submit a “Speaker Slip” to the City Clerk when Public Oral Communication is announced. Each speaker will have up to three (3) minutes to speak at the discretion of the Mayor and may be asked clarifying questions. Information received during Public Oral Communication may be received, placed on a future agenda, or referred to the City Manager by the City Council. State law generally precludes the City Council from discussing or acting upon any topic presented during oral communications that is not described on the posted agenda.
Note: there is a time limit of 30 minutes for this section of public communications and each speaker will be heard in the order of the submission of their speaker slip. Speakers who have turned in a speaker slip prior to the time oral communications was called on the agenda, but were not heard during the initial time period shall be called to speak at the end of the agenda.
V. COMMUNITY ANNOUNCEMENTS
VI. CITY MANAGER’S REPORT
VII. CONSENT CALENDAR
All items listed on the Consent Calendar are considered to be routine and will be acted upon with one motion. There will be no separate discussion of these items unless a member of the City Council or the public so requests, in which event, the item will be pulled from the Consent Calendar and considered separately after the motion to approve the Consent Calendar. If you wish to remove an item from the Consent Calendar, please submit a “Speaker Slip” to the City Clerk.
1. Approval of Minutes: January 21, 2025 Regular and Special Meeting, January 23, 2025 Special Meeting
Recommended Action: Approve Minutes.
Reference: Clerk’s Minutes Book
2. Ratification of List of Demands dated February 3, 2025 Recommended Action: Ratify the List of Demands.
Reference: Clerk’s File No. 201-3
Del Mar City Council Regular Meeting February 3, 2025
Agenda Page 3
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us
3. Waiver of Reading of Ordinances on Agenda
Recommended Action: Waive Reading of Ordinances.
Reference: Clerk’s File No. 401-4
4. Approval of the 2025 Legislative Policy Guidelines
Recommended Action: Staff recommends that the City Council approve the City’s 2025 Legislative Policy Guidelines (Attachment A).
Reference: Clerk’s File No. 401-7, 401-8
5. First Amendment to Agreement for Citywide Janitorial Services Recommended Action: Staff recommends that the City Council: 1) Approve a First Amendment to the Agreement for Citywide Janitorial Services (Agreement) with Aztec Janitorial Service (Attachment A) to amend the service schedule and fee schedule; and 2) Authorize the City Manager to execute the First Amendment.
Reference: Clerk’s File No. 406-1
6. 2025 City Council Goals & Priorities Setting Workshop Preparations Recommended Action: Staff recommends that the City Council review the proposed 2025 City Council Goals & Priorities Setting Workshop (Workshop) outline (Attachment A) and provide direction to staff as needed.
Reference: Clerk’s File No. 401-1
VIII. PUBLIC HEARING
7. Encroachment Permits 24-106 and 24-107 to Retain Existing Fencing within the Public Right-of-Way at 401 and 405 9th Street
Applicant: Ken Huettner
Recommended Action: Staff recommends the City Council adopt the attached Resolutions (Attachment A and B) conditionally approving Long-term Major Encroachment Permits (EP) 24-106 and 24-107 to retain private encroachments at 401 and 405 9th Street.
Reference: Clerk’s File No. 802-1
IX. COUNCIL MEETING RECESS
Del Mar City Council Regular Meeting February 3, 2025
Agenda Page 4
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us X. CITY COUNCIL OTHER BUSINESS
8. Consideration of Undergrounding Program Financing Options Recommended Action: Staff recommends the City Council: 1) Receive a presentation from City staff and NHA Advisors, LLC (NHA) on debt offerings based on NHA’s Memorandum dated January 9, 2025 (Attachment A); 2) Provide direction on whether the City should proceed with financing for Utility Undergrounding Districts (UUDs) X1A and 1B or delay the projects and proceed on a pay-as-you-go basis; 3) If financing is supported, provide direction on which debt option, public versus private borrowing, to pursue for financing UUDs X1A and 1B; and 4) Approve and authorize the City Manager to execute Task Order 3 with NHA for $67,500 to serve as the City’s municipal advisor for purposes of the borrowing (Attachment B).
Reference: Clerk’s File No. 203-3, 1001-2
9. Reaffirm Final Investigative Report Concerning Councilmember Quirk Recommended Action: It is recommended that the City Council adopt a statement reaffirming the final investigative report concerning Councilmember Dan Quirk dated February 16, 2024, and presented to the City Council on April 15, 2024.
Reference: Clerk’s File No. 401-1
XI. REGIONAL ORGANIZATION REPORTS
A Councilmember assigned as a liaison to a regional organization may make a written or oral report. State law precludes the Council from commenting on, discussing, or acting on a report unless the item of business within the report is described in the agenda.
A. Clean Energy Alliance JPA (CEA) Board of Directors (Spelich/Gaasterland) B. CSA-17 Ambulance District Advisory Board (Martinez/Quirk) C. Fire Governance Board, Solana Beach/Del Mar/Encinitas (Martinez/Spelich) D. League of California Cities – San Diego Chapter (Gaasterland/Martinez) E. North County Transit District (NCTD) (Martinez/Spelich) Receive Written Report (Martinez)
F. Regional Solid Waste Association (Spelich/Quirk)
G. San Diego Association of Governments Board (SANDAG)
(Gaasterland/Martinez/Spelich)
H. SANDAG Borders Committee
I. SANDAG Regional Planning Committee
J. SANDAG Shoreline Preservation Working Group
(Spelich/Gaasterland/Martinez)
K. SANDAG LOSSAN Executive Task Force (Gaasterland/Martinez) L. San Diego Metropolitan Wastewater Commission/JPA (Worden) Del Mar City Council Regular Meeting February 3, 2025
Agenda Page 5
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us M. San Dieguito River Valley Regional Open Space Park JPA –Executive Committee (Gaasterland/Martinez)
N. Other Regional Organization Reports
XII. COUNCIL COMMITTEES/SUBCOMMITTEES/COMMUNITY ORG REPORTS A Councilmember assigned as a liaison to a City Committee, Council Subcommittee OR Community Organization may make a written or oral report. State law precludes the Council from commenting on, discussing, or acting on a report, unless the item of business within the report is described in this agenda.
A. Arts Advisory Committee (Gaasterland/Spelich)
B. Del Mar Community Connections (Martinez/Spelich)
C. Del Mar Village Association (Gaasterland/Martinez)
D. Finance Committee (Gaasterland/Spelich)
E. Housing Subcommittee (Gaasterland/Martinez)
F. Human Resources Subcommittee (Gaasterland/Martinez)
G. Legislative Subcommittee (Gaasterland/Martinez)
H. Measure Q Citizen Oversight Committee (Quirk/Gaasterland) I. Parks and Recreation Committee (Martinez/Quirk)
J. Del Mar Railroad Subcommittee (Gaasterland/Martinez) K. Lagoon Committee (Gaasterland/Spelich)
L. Planning Process Subcommittee (Includes Sea-Level Rise Adaptation Plan Implementation (Gaasterland/Spelich)
M. Shores Advisory Committee
N. Sustainability Advisory Committee (Martinez/Gaasterland) O. Traffic and Parking Advisory Committee (Quirk/Spelich) P. Undergrounding Program Advisory Committee (Gaasterland/Spelich) Q. Other Committee-Subcommittee Reports
XIII. UPCOMING AGENDA ITEMS
The following topics/items are tentatively planned for upcoming agendas. The title, wording, and planned date for these items are subject to change. Final agendas are posted at City Hall 72 hours in advance of the meetings and are also posted on our web site with the accompanying staff report. Please watch our web site:
www.delmar.ca.us for City Council Agendas.
February 18, 2025
San Dieguito Double Track and LOSSAN Value Analysis Process Joint Presentation Del Mar Fire Preparedness Presentation
Appointments to the Undergrounding Program Advisory Committee (UPAC) Appointment to the Lagoon Committee
Appointment to the Parks and Recreation Committee
Appointment to the Traffic and Parking Advisory Committee XIV. CERTIFICATION
Del Mar City Council Regular Meeting February 3, 2025
Agenda Page 6
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us I, Sarah Krietor, Administrative Services Manager/City Clerk for the City of Del Mar, hereby certify that a copy of this agenda was posted at City Hall on the 30th day of January, 2025 at approximately 5:30 p.m.
___________________________________________ 1/30/2025
Sarah Krietor, Administrative Services Manager/ Date
City Clerk
DEL MAR CITY COUNCIL
SPECIAL MEETING MINUTES
CLOSED SESSION
JANUARY 21, 2025
City of Del Mar Town Hall
1050 Camino del Mar, Del Mar, California
CALL TO ORDER
Mayor Gaasterland called the meeting to order at 4:20 P.M., opened and closed the public comment period, and continued the meeting to resume following the open City Council meeting. The meeting resumed at approximately 5:50 P.M.
ROLL CALL
Present: Mayor Gaasterland; Deputy Mayor Tracy Martinez; Councilmembers Dan Quirk and John Spelich
CLOSED SESSION
A) Conference with Legal Counsel - Significant Exposure to Litigation Number of Cases: Two
Description: 1) San Dieguito Drive Assessment District; and 2) Misinformation distributed publicly by Councilmember Dan Quirk related to prior City Council investigation pertaining to him
Authority: Government Code Section 54956.9(d)(2)
Reportable Action: None. Councilmember Dan Quirk was recused from participating in the discussion for Item A2.
ADJOURNMENT
Mayor Gaasterland adjourned the meeting at 7:45 P.M.
_______________________________________
Sarah Krietor, Administrative Services Manager/
City Clerk
1 February 3, 2025 Item 01
CITY OF DEL MAR
CITY COUNCIL REGULAR MEETING MINUTES
JANUARY 21, 2025
City of Del Mar Town Hall
1050 Camino del Mar, Del Mar California 92014
The minutes set forth the actions taken by the City Council on the matters stated. Audio/video recordings of the City Council proceedings are retained for a period of ten years, in accordance with the City's Records Retention Schedule. Audio/video recordings, as well as written materials presented to the City Council, including Red Dots (materials provided to the City Council after the agenda has published), are available on the City’s website at www.delmar.ca.us/AgendaCenter or by contacting the Administrative Services Department at (858) 755-9313.
CALL TO ORDER
Mayor Gaasterland called the Regular Meeting to order at 4:31 p.m.
ROLL CALL
Present: Mayor Gaasterland; Deputy Mayor Tracy Martinez; Councilmembers Dan Quirk and John Spelich
CITY ATTORNEY CLOSED SESSION REPORT
City Attorney Leslie Devaney reported that the City Council will adjourn into closed session following open session. She will provide a report out on the January 21, 2025, City Council Closed Session Meeting on February 3, 2025.
PLEDGE OF ALLEGIANCE
Mayor Gaasterland led the Pledge of Allegiance.
PUBLIC ORAL COMMUNICATIONS
Mayor Gaasterland opened public oral communication and the following people spoke:
1) Camilla Rang
2) John Stahl
3) Kevin Kidd
4) Polly Cipparrone representing the Del Mar Library
5) Diana Kutlow representing State Senator Catherine Blakespear Mayor Gaasterland closed public oral communication.
CITY COUNCIL COMMUNITY ANNOUNCEMENTS
None.
CITY MANAGER’S REPORT
City Manager Ashley Jones answered City Council questions related to the San Diego Association of Governments (SANDAG) Del Mar Rail Realignment Project Value Analysis Report which will be presented to the Del Mar City Council on February 18, 2025. There will also be additional informational public presentations held in the Del Mar Town Hall on February 19, 2025, from 6:00 p.m.-7:30 p.m. and a presentation to the Torrey Pines Community Planning Group on February 20, 2025. 2 February 3, 2025 Item 01
City Council Regular Minutes
January 21, 2025
City Manager Ashley Jones provided a comprehensive report out regarding the City’s fire preparedness and response efforts. Councilmember questions focused on evacuations, including vulnerable older adults; desire for the City to evaluate parking on narrow streets in the City to potentially mitigate fire risks; Crest Canyon Evacuation Plan; City’s water supply; and City of San Diego brush removal in Crest Canyon.
Assistant City Manager Clem Brown provided an update on SANDAG’s Bluff 5 Project absolute work window beginning Friday, January 24, 2025, at 5:30 a.m. through Monday morning on January 27, 2025.
CONSENT CALENDAR
Administrative Services Manager/City Clerk Sarah Krietor read the titles of the items included on the Consent Calendar. There were no public speakers for the consent calendar items.
IT WAS MOVED BY DEPUTY MAYOR TRACY MARTINEZ, SECONDED BY COUNCILMEMBER QUIRK TO APPROVE THE CONSENT CALENDAR ITEMS 1 THROUGH 5. (VOTE 4-0) Ayes: Mayor Gaasterland; Deputy Mayor Tracy Martinez; Councilmembers Dan Quirk and John W.
Spelich; Noes: 0; Recuse: 0; Absent: 0; Abstain: 0.
ITEM 1: APPROVAL OF MINUTES: JANUARY 6, 2025 REGULAR AND SPECIAL MEETING (CLERK’S MINUTES BOOK)
Council approved the minutes, on consent.
ITEM 2: RATIFICATION OF LIST OF DEMANDS, DATED JANUARY 21, 2025 (CLERK’S FILE NO. 201-3)
Council approved the list of demands, on consent.
ITEM 3: WAIVER OF READING OF ORDINANCES ON AGENDA (CLERK’S FILE NO. 401-4) Council waived the reading of ordinances, on consent.
ITEM 4: FINANCE COMMITTEE APPOINTMENT (CLERK’S FILE NO. 401-5) Council appointed John Fry as a voting member to the Finance Committee to serve a full three-year term effective January 21, 2025, and ending on January 31, 2028, on consent.
ITEM 5: ACCEPTANCE OF A DONATION FROM FRIENDS OF THE POWERHOUSE FOR THE POWERHOUSE DECK TRELLIS REPLACEMENT PROJECT (CLERK’S FILE NO. 201-16)
Council accepted a donation up to $66,000 from the Friends of the Powerhouse for the Powerhouse Deck Trellis Replacement Project (Project); and amended the Fiscal Year 2024-2025 Operating and Capital Budget as described in the Fiscal Impact section of the agenda report, on consent.
3 February 3, 2025 Item 01
City Council Regular Minutes
January 21, 2025
CITY COUNCIL OTHER BUSINESS
ITEM 6: CONTINUED FROM JANUARY 6, 2025: SUBMITTED CITIZENS’ INITIATIVE PETITION TO AMEND THE CITY’S ORDINANCE REGULATING RETAIL ANIMAL SALES IN DEL MAR (CLERK’S FILE NO. 401-4, 402-8)
A presentation was provided by Administrative Services Manager/City Clerk Krietor.
Mayor Gaasterland opened the item to public comment and the proponent Amit Dhuleshia spoke. Mayor Gaasterland closed the item to public comment.
Council questions and discussion focused on how residents can get in touch with Mr. Dhuleshia regarding his animal advocacy efforts and whether San Diego Humane Society was supportive of the proposed regulations.
REGIONAL ORGANIZATION AND COUNCIL COMMITTEES/SUBCOMMITTEES/COMMUNITY
ORGANIZATION REPORTS
City Council representatives reported on the San Dieguito River Valley JPA; Sustainability Advisory Committee (SAC); North County Transit District (NCTD); SANDAG Board of Directors; Regional Solid Waste Association (RSWA); Finance Committee; and Undergrounding Program Advisory Committee (UPAC).
ADJOURNMENT
Mayor Gaasterland adjourned the meeting at 5:50 p.m.
Sarah Krietor, Administrative Services Manager/
City Clerk
4 February 3, 2025 Item 01
DEL MAR CITY COUNCIL
SPECIAL MEETING MINUTES
CLOSED SESSION
JANUARY 23, 2025
City of Del Mar Town Hall
1050 Camino del Mar, Del Mar, California
CALL TO ORDER
Mayor Gaasterland called the meeting to order at 4:30 P.M.
ROLL CALL
Present: Mayor Gaasterland; Deputy Mayor Tracy Martinez; and John Spelich Recused: Councilmember Dan Quirk
CLOSED SESSION
1) Conference with Legal Counsel - Significant Exposure to Litigation Number of Cases: One
Description: Misinformation distributed publicly by Councilmember Dan Quirk related to prior City Council investigation pertaining to him
Authority: Government Code Section 54956.9(d)(2)
Reportable Action: None.
ADJOURNMENT
Mayor Gaasterland adjourned the meeting at 6:25 P.M.
_______________________________________
Sarah Krietor, Administrative Services Manager/
City Clerk
5 February 3, 2025 Item 01
1 February 3, 2025 Item 02
01/09/2025
Check List
City of Del Mar
1 12:23:33PM
apChkLst Final Page:
Bank : gusbnk GENERAL ACCOUNT US BANK
Check # Date Vendor Invoice Inv Date Description Amount Paid Check Total 4073 1/10/2025 irs01 IRS, UNITED STATES TREASURY Ben178516 1/10/2025 FEDERAL TAX: PAYMENT 44,219.57 44,219.57 Voucher: 4073
4074 1/10/2025 per01 PERS Ben178518 1/10/2025 PERS CONTRIBUTIONS: PAYMENT 56,655.92 56,655.92 Voucher: 4074
4075 1/10/2025 edd01 EMPLOYMENT DEVELOPMENT DEPT Ben178520 1/10/2025 STATE TAX: PAYMENT 13,338.84 13,338.84 Voucher: 4075
4076 1/10/2025 per02 PERS 457 Ben178522 1/10/2025 CALPERS 457 DEFERRED COMP: PAYMENT 2,280.13 2,280.13 Voucher: 4076
4077 1/10/2025 ida01 IDAHO STATE TAX COMMISSIONBen178524 1/10/2025 IDAHO STATE TAX COMMISSION: PAYMENT 235.43 235.43 Voucher: 4077
Sub total for GENERAL ACCOUNT US BANK: 116,729.89
Page: 1
2 February 3, 2025 Item 02
01/09/2025
Check List
City of Del Mar
2 12:23:33PM
apChkLst Final Page:
Bank : eusbnk EFT GENERAL ACCOUNT US BANK
Check # Date Vendor Invoice Inv Date Description Amount Paid Check Total 6527 1/10/2025 mis07 107413 STATE ST BANK & TRUST, MS 107413 PLAN 401A Ben178512 1/10/2025 401A PLAN: PAYMENT 539.00 539.00 Voucher: 6527
6528 1/10/2025 mis08 303845 STATE ST BANK & TRUST, MS 457 PLAN OBI 303845 Ben178504 1/10/2025 MISSION SQUARE 457B: PAYMENT 9,624.97 9,624.97 Voucher: 6528
6529 1/10/2025 mis09 803808 STATE ST BANK & TRUST, MS RHS PLAN OBI 803808 Ben178514 1/10/2025 RETIREMENT HEALTH SAVINGS 3%: PAYMENT 719.97 719.97 Voucher: 6529
6530 1/10/2025 uni21 DEL MAR CITY EMPLOYEES ASSOC. Ben178506 1/10/2025 DMCEA DUES: PAYMENT 286.00 286.00 Voucher: 6530
6531 1/10/2025 nat15 NATIONAL BENEFIT SERVICES, LLC, FLEXIBLE BENEFITS DEPT Ben178510 1/10/2025 SEC. 125 FLEXIBLE SAVINGS ACCT: PAYMENT 1,339.10 1,339.10 Voucher: 6531
6532 1/10/2025 par21 U.S. BANK PARS FFC 6746022400, CITYDELMAR ATTN B BERGMAN Ben178508 1/10/2025 PUBLIC AGENCY RETIREMENT SRVCS: PAYMENT 1,345.83 1,345.83 Voucher: 6532
Sub total for EFT GENERAL ACCOUNT US BANK: 13,854.87
Page: 2
3 February 3, 2025 Item 02
01/09/2025
Check List
City of Del Mar
3 12:23:33PM
apChkLst Final Page:
11 checks in this report. Grand Total All Checks: 130,584.76 Page: 3
4 February 3, 2025 Item 02
01/16/2025
Check List
City of Del Mar
1 10:24:38AM
apChkLst Final Page:
Bank : eusbnk EFT GENERAL ACCOUNT US BANK
Check # Date Vendor Invoice Inv Date Description Amount Paid Check Total 6533 1/17/2025 als02 ALS GROUP USA CORP 522406962 12/23/2024 WATER SAMPLING DEC 496.00 496.00 Voucher: 6533
6534 1/17/2025 cha71 CHARTER COMM HOLDINGS LLC, CHARTER COMMUNICATIONS 189123701 12/14/2024 FIBER CONNECTION PW DEC 413.15 Voucher: 6534 189123401 12/14/2024 CABLE/INTERNET PW DEC 229.59 642.74 6535 1/17/2025 civ02 CIVIC SOLUTIONS INC 105270 1/2/2025 CONSULTING SRVCS DEC 10,920.00 Voucher: 6535 105271 1/2/2025 CONSULTING SRVCS DEC 158.00 11,078.00 6536 1/17/2025 cor11 CORODATA MEDIA STORAGE INC DS1310643 12/31/2024 STORAGE SRVCS DEC 233.33 233.33 Voucher: 6536
6537 1/17/2025 cor07 CORODATA RECORDS MGT INCRS7056780 12/31/2024 STORAGE SRVCS DEC 155.36 155.36 Voucher: 6537
6538 1/17/2025 cos06 COSCO FIRE PROTECTION INC1000701467 12/27/2024 ANNUAL FIRE TESTING CH 2,955.00 2,955.00 Voucher: 6538
6539 1/17/2025 dev02 DEVANEY PATE MORRIS & CAMERON 9908 12/11/2024 CITY ATTORNEY NOV 29,541.20 Voucher: 6539 9910 12/11/2024 LEGAL FEES NOV 292.80
9909 12/11/2024 LEGAL FEES NOV 170.80
9906 12/11/2024 LEGAL FEES NOV 24.40 30,029.20
6540 1/17/2025 dix01 DIXIELINE LUMBER CO 06-0581763 12/27/2024 OPERATING SUPP PW 92.73 Voucher: 6540 06-0581944 12/28/2024 FACILITY REPAIR SUPP PW 63.85 06-1581728 12/27/2024 OPERATING SUPP PW 62.55
06-0580979 12/20/2024 OPERATING SUPP PW 54.79
06-0572654 10/10/2024 OPERATING SUPP PW 51.44
06-0573198 10/15/2024 OPERATING SUPP PW 28.25 353.61
6541 1/17/2025 esr01 ESRI 94882009 1/7/2025 ANNUAL SBSCRPTN/MAINT 2,260.00 2,260.00 Voucher: 6541
6542 1/17/2025 hel04 HELIX ENVIRONMENTAL PLANNING 126015 12/15/2024 RIVER PATH EXT PHASE 3 DEC 3,487.30 3,487.30 Voucher: 6542
6543 1/17/2025 lif01 LIFE-ASSIST 1539993 12/24/2024 AMBULANCE SUPP FIRE 265.86 Voucher: 6543 1539190 12/20/2024 AMBULANCE SUPP FIRE 147.31 1541601 12/31/2024 AMBULANCE SUPP FIRE 87.40
1539135 12/20/2024 AMBULANCE SUPP FIRE 24.89 525.46
6544 1/17/2025 mic11 MICHAEL BAKER INTERNATIONAL 1233158 12/13/2024 PROJ ENGR SRVCS PW 22,710.03 22,710.03 Voucher: 6544
6545 1/17/2025 mik03 MIKHAIL OGAWA ENGINEERING11844 1/3/2025 FOG SRVCS DEC 2,985.72 Voucher: 6545 11843 1/3/2025 ENGR SRVCS DEC 222.92 3,208.64 Page: 1
5 February 3, 2025 Item 02
01/16/2025
Check List
City of Del Mar
2 10:24:38AM
apChkLst Final Page:
Bank : eusbnk EFT GENERAL ACCOUNT US BANK (Continued)
Check # Date Vendor Invoice Inv Date Description Amount Paid Check Total 6546 1/17/2025 off03 OFFICE DEPOT 403369343001 12/17/2024 OFFICE SUPPLIES PW 162.99 Voucher: 6546 403371373001 12/18/2024 OFFICE SUPP PW 29.92 192.91 6547 1/17/2025 pru01 PRUDENTIAL OVERALL SUPPLY132293003 1/3/2025 UNIFORMS PW - 1/3 122.83 Voucher: 6547 132291847 12/27/2024 UNIFORMS PW - 12/27 97.60 132291845 12/27/2024 MATS PW - 12/27 15.47
132291846 12/27/2024 SHOP TOWELS PW - 12/27 4.93 240.83 6548 1/17/2025 uni03 SAN DIEGO - UNION TRIBUNE0011650238 2/29/2024 AD - PC 618.80 Voucher: 6548 0011650520 2/29/2024 AD - PC AGENDA 468.68 0011647883 2/29/2024 AD - DRB 346.36 1,433.84
6549 1/17/2025 san56 SAN ELIJO JOINT POWERS, AUTHORITY 12232024 12/23/2024 OPERATIONS/MAINT 3Q 344,939.00 Voucher: 6549 09112024 9/11/2024 RECLAIMED WATER JUL/AUG 41,472.77 11132024 11/13/2024 RECLAIMED WATER NOV/DEC 30,840.63 417,252.40 6550 1/17/2025 uti01 UTILITY SPECIALISTS INC 28071 11/30/2024 UP - X1A CREST CANYON OCT 43,368.25 Voucher: 6550 28342 12/31/2024 UP - 1A STRATFORD S NOV 41,288.00 28072 11/30/2024 UP - 1B STRATFORD N OCT 13,169.75
28341 12/31/2024 UP - 1B STRATFORD N NOV 11,649.75
28340 12/31/2024 UP - X1A CREST CNYN NOV 7,180.00
28345 12/31/2024 UP - 1A STRATFORD 358.75
28344 12/31/2024 UP - X1A CREST CANYON 19.14
28343 12/31/2024 UP - REIMBURSABLES 10.31 117,043.95
6551 1/17/2025 wex01 WEX BANK 0496-00-496530-7 1/6/2025 GAS & OIL PW DEC 3,062.85 3,062.85 Voucher: 6551
Sub total for EFT GENERAL ACCOUNT US BANK: 617,361.45
Page: 2
6 February 3, 2025 Item 02
01/16/2025
Check List
City of Del Mar
3 10:24:38AM
apChkLst Final Page:
Bank : gusbnk GENERAL ACCOUNT US BANK
Check # Date Vendor Invoice Inv Date Description Amount Paid Check Total 139181 1/17/2025 adt02 ADT SECURITY SERVICES 1106799601 12/13/2024 ALARM PW JAN 128.57 128.57 Voucher: 139181
139182 1/17/2025 sbc03 AT&T 9391059863 1/1/2025 TELEPHONE DEC 1,331.97 1,331.97 Voucher: 139182
139183 1/17/2025 azt02 AZTEC LANDSCAPING INC, DBA AZTEC JANITORIAL J1966 12/31/2024 JANITORIAL SRVCS CH DEC 2,564.00 2,564.00 Voucher: 139183
139184 1/17/2025 bad01 BADGER METER INC 1704078 12/23/2024 MAINT/REPAIR SUPP PW 1,003.00 1,003.00 Voucher: 139184
139185 1/17/2025 bak01 BAKER IRON WORKS INC. 98623 1/8/2025 CLIFF RESCUE PICKETS CS 600.00 600.00 Voucher: 139185
139186 1/17/2025 bar29 BARNETT QUALITY CONTROL SRVCS, DBA NOVA SRVCS INC 23727 12/7/2024 STRATFORD COURT PROJ 9,619.76 Voucher: 139186 23728 12/7/2024 HOSKA/STORM DRN IMP PROJ 1,256.50 10,876.26 139187 1/17/2025 ber21 BERT W. SALAS, INC 01092025 1/9/2025 HOSKA/STORM DRN IMP PROJ 162,905.76 162,905.76 Voucher: 139187
139188 1/17/2025 bre22 BREZINER, ARIEH 01132025 1/13/2025 PHCC EVENT REFUND 800.00 800.00 Voucher: 139188
139189 1/17/2025 cpr01 CA PARK & RECREATION SOCIETY 126706 12/19/2024 MBRSHP PANDURO PW 170.00 170.00 Voucher: 139189
139190 1/17/2025 can08 CANTEEN SAN105164 12/30/2024 COFFEE SUPPLIES PW 411.60 411.60 Voucher: 139190
139191 1/17/2025 cin02 CINTAS 5245643117 12/20/2024 FIRST AID KIT SUPP PW 247.42 247.42 Voucher: 139191
139192 1/17/2025 cit07 CITY OF SAN DIEGO 1000405974 12/19/2024 WATER TREATMENT NOV 30,193.78 30,193.78 Voucher: 139192
139193 1/17/2025 cli04 CLIFTONLARSONALLEN LLP L251014571 1/14/2025 AUDIT SRVCS 18,000.00 18,000.00 Voucher: 139193
139194 1/17/2025 cou16 COUNTY OF SAN DIEGO - REGIONAL, COMM SYSTEM 25CTOFDMC06 1/1/2025 RCS PAGING SRVCS - DEC 70.00 70.00 Voucher: 139194
139195 1/17/2025 dyn02 DYNAMITE ELECTRIC BIKES INC, DBA PEDEGO SOLANA BEACH 2713 1/11/2025 ELEC BIKE REPAIR CS 200.68 Voucher: 139195 01112025 1/11/2025 ELEC BIKE MAINT CS 197.04 397.72 139196 1/17/2025 glo06 GLOBAL POWER GROUP INC.101042 1/6/2025 PM GENERATOR MAINT CH 986.25 986.25 Voucher: 139196
139197 1/17/2025 hom01 HOME DEPOT CREDIT SRVCS6035 3225 0103 776012/27/2024 MAINT/REPAIR SUPP PW 659.57 659.57 Voucher: 139197
Page: 3
7 February 3, 2025 Item 02
01/16/2025
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City of Del Mar
4 10:24:38AM
apChkLst Final Page:
Bank : gusbnk GENERAL ACCOUNT US BANK (Continued)
Check # Date Vendor Invoice Inv Date Description Amount Paid Check Total 139198 1/17/2025 icm06 ICMA MEMBERSHIP RENEWALS01152025 1/15/2025 MBRSHP - BROWN 1,200.00 1,200.00 Voucher: 139198
139199 1/17/2025 lea01 LEAGUE OF CALIF CITIES INV-26807-B2D8P41/2/2025 MBRSHP 2025 2,956.00 2,956.00 Voucher: 139199
139200 1/17/2025 lea09 LEARNSOFT ENTERPRISE TRAINING, INC 180270 10/3/2024 COMPUTER TRAINING ASD 255.00 255.00 Voucher: 139200
139201 1/17/2025 lez01 LEZACK, ADAM Ref000178531 1/10/2025 UB Refund Cst #00008369 130.14 130.14 Voucher: 139201
139202 1/17/2025 mun07 MUNICIPAL MAINTENANCE EQUIP 030442 12/16/2024 INLET ELBOW WELD MT PW 1,627.90 1,627.90 Voucher: 139202
139203 1/17/2025 ols10 OLSON, ANA 01132025 1/13/2025 PHCC PERMIT REFUND 505.00 505.00 Voucher: 139203
139204 1/17/2025 ost05 OSTARI INC 502425 1/1/2025 FIREWALL SRVCS JAN/MAR 462.00 462.00 Voucher: 139204
139205 1/17/2025 pas06 PASCUAL Y PASCUAL BALTAZAR 2240 12/20/2024 CHAIN LINK FENCE PW 6,685.00 6,685.00 Voucher: 139205
139206 1/17/2025 pur07 PURDY TREE FARMS, LLC Ref000178532 1/10/2025 UB Refund Cst #00008466 2,153.75 2,153.75 Voucher: 139206
139207 1/17/2025 san138 SAN DIEGO ELEVATOR & LIFTS9018 12/13/2024 ELEVATOR MAINT DEC 200.00 200.00 Voucher: 139207
139208 1/17/2025 sdg02 SAN DIEGO GAS & ELECTRIC0081 7377 2988 5 1/7/2025 UTILITIES DEC 7,736.94 Voucher: 139208 0066 5491 6833 1 1/7/2025 UTILITIES DEC 6,232.65 0066 5392 2766 7 1/7/2025 UTILITIES DEC 1,122.06
0069 0908 1676 1 1/7/2025 UTILITIES DEC 379.20
0067 3735 0888 1 1/7/2025 UTILITIES DEC 307.85
2100 0065 8024 7 1/7/2025 UTILITIES DEC 86.41
0085 7750 3585 7 1/7/2025 UTILITIES DEC 18.93 15,884.04 139209 1/17/2025 ses01 SESAC 79974 1/1/2025 ANNUAL SESAC FEE 610.00 610.00 Voucher: 139209
139210 1/17/2025 sou02 SOUTHCOAST HEATING & AIR COND. 1415228 12/27/2024 HVAC SRVCS PW 359.00 359.00 Voucher: 139210
139211 1/17/2025 sou08 SOUTHWEST SIGNAL SERVICE83919 12/31/2024 PM SIGNAL MAINT 472.50 Voucher: 139211 83920 12/31/2024 TRAFFIC SIGNAL MAINT DEC 142.53 615.03 139212 1/17/2025 sta36 STANDARD PLUMBING SUPPLY CO, DBA MWI PLUMBERS SUPPLY XWTY79 12/23/2024 WATER METER PARTS PW 43.35 43.35 Voucher: 139212
Page: 4
8 February 3, 2025 Item 02
01/16/2025
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City of Del Mar
5 10:24:38AM
apChkLst Final Page:
Bank : gusbnk GENERAL ACCOUNT US BANK (Continued)
Check # Date Vendor Invoice Inv Date Description Amount Paid Check Total 139213 1/17/2025 sun05 SUNBELT RENTALS INC 163844458-0001 1/7/2025 CONCRETE MIXER PW 350.74 350.74 Voucher: 139213
139214 1/17/2025 tei02 TEICHERT ENERGY & UTILITIES GR, DBA: TEICHERT UTILITIES 01072024 1/7/2024 UUD 1A STRATFORD CT 401,948.48 401,948.48 Voucher: 139214
139215 1/17/2025 ter11 TERMINIX COMMERCIAL 455422076 1/7/2025 PEST CONTROL SRVCS CH 150.00 Voucher: 139215 455418843 1/7/2025 PEST CONTROL SRVCS CS 121.00 455422102 1/7/2025 PEST CONTROL SRVCS LIBRARY 106.85
455418786 1/7/2025 PEST CONTROL SRVCS PHCC 103.00 480.85 139216 1/17/2025 tim02 TIMEMARK INCORPORATED 118476 1/7/2025 MAINT/REPAIR SUPP PW 213.89 213.89 Voucher: 139216
139217 1/17/2025 t-mo01 T-MOBILE USA INC 980755647 12/21/2024 TELEPHONE DEC 11.90 11.90 Voucher: 139217
139218 1/17/2025 uli02 ULINE 184590208 10/21/2024 OPERATING SUPP PW 1,164.64 1,164.64 Voucher: 139218
139219 1/17/2025 und01 UNDERGROUND SERVICE ALERT 1220240234 1/1/2025 CONT SRVCS DEC 154.30 154.30 Voucher: 139219
139220 1/17/2025 uni28 UNITED RENTALS INC 242300304-001 12/17/2024 FLOOR SCRUBBER RENTAL PW 1,772.55 1,772.55 Voucher: 139220
139221 1/17/2025 ver12 VERIZON Z1155659 1/8/2025 TELEPHONE DEC 2.64 2.64 Voucher: 139221
139222 1/17/2025 ver03 VERIZON WIRELESS 872374736-00003 12/18/2024 TELEPHONE DEC 228.77 Voucher: 139222 542070053-00002 12/20/2024 TELEPHONE DEC 168.20 396.97 139223 1/17/2025 vis07 VISTA PAINT CORPORATION 2024-698239-00 11/7/2024 PAINT SUPP PW 1,581.67 1,581.67 Voucher: 139223
139224 1/17/2025 wax02 WAXIE'S ENTERPRISES, LLC. DBA, WAXIE SANITARY SUPPLY 82926192 12/17/2024 JANITORIAL SUPPLIES 1,583.94 Voucher: 139224 82953976 1/6/2025 JANITORIAL SUPPLIES 1,394.69 82957614 1/7/2025 JANITORIAL SUPPLIES 674.08
82876829 11/21/2024 JANITORIAL SUPPLIES 86.36
82887602 11/26/2024 JANITORIAL SUPPLIES 50.85 3,789.92
139225 1/17/2025 wes29 WEST COAST ARBORISTS INC223179 12/15/2024 TREE MAINT 12/1 - 12/15 14,759.97 Voucher: 139225 223184 12/15/2024 TREE MAINT 12/1 - 12/15 7,800.00 223182 10/31/2024 TREE MAINT 10/16 - 10/31 2,400.00
223181 10/15/2024 TREE MAINT 10/1 - 10/15 7,200.00
223180 12/15/2024 TREE MAINT 12/1 - 12/15 278.49 32,438.46 Page: 5
9 February 3, 2025 Item 02
01/16/2025
Check List
City of Del Mar
6 10:24:38AM
apChkLst Final Page:
Sub total for GENERAL ACCOUNT US BANK: 709,339.12
Page: 6
10 February 3, 2025 Item 02
01/16/2025
Check List
City of Del Mar
7 10:24:38AM
apChkLst Final Page:
64 checks in this report. Grand Total All Checks: 1,326,700.57 Page: 7
11 February 3, 2025 Item 02
01/23/2025
Check List
City of Del Mar
1 1:51:05PM
apChkLst Final Page:
Bank : eusbnk EFT GENERAL ACCOUNT US BANK
Check # Date Vendor Invoice Inv Date Description Amount Paid Check Total 6552 1/24/2025 cha71 CHARTER COMM HOLDINGS LLC, CHARTER COMMUNICATIONS 189125601 1/14/2025 INTERNET CH 1,311.74 Voucher: 6552 189125301 1/14/2025 CH FIBER LFGRD JAN 412.74 189123101 1/14/2025 LIFEGUARD FIBER JAN 412.74
189125801 1/14/2025 VIDEO TRANSPORT/PEG JAN 335.35
189125701 1/14/2025 CH FIBER TO FIRE JAN 335.35
189123801 1/14/2025 LFGRD FIBER JAN 335.35
189112801 1/14/2025 VIDEO TRANSPORT/PEG JAN 335.35
8448 41 006 01714631/13/2025 PUBLIC WIFI PHCC JAN 166.24 189125401 1/14/2025 DMTV INTERNET JAN 119.98
189125501 1/14/2025 PUBLIC WIFI CH JAN 119.98
189125201 1/14/2025 INTERNET TV STUDIO JAN 89.97
189123001 1/14/2025 LFGRD CABLE INTERNET JAN 99.99 4,074.78 6553 1/24/2025 cor23 CORODATA SHREDDING INC DN 1502733 12/31/2024 SHREDDING SRVCS DEC 41.95 41.95 Voucher: 6553
6554 1/24/2025 cos06 COSCO FIRE PROTECTION INC1000703680 1/10/2025 FIRE SPRINKLER MAINT CH 865.00 865.00 Voucher: 6554
6555 1/24/2025 dev02 DEVANEY PATE MORRIS & CAMERON 10006 1/8/2025 CITY ATTORNEY DEC 29,004.40 Voucher: 6555 10007 1/8/2025 LEGAL FEES DEC 488.00 29,492.40 6556 1/24/2025 dix01 DIXIELINE LUMBER CO 06-0581263 12/19/2024 MAINT/REPAIR SUPP PW 51.86 Voucher: 6556 06-0582949 1/8/2025 OPERATING SUPP PW 48.71 06-0582966 1/8/2025 OPERATING SUPP PW 15.63
06-0584100 1/17/2025 OPERATING SUPP CS 12.69 128.89
6557 1/24/2025 fer07 FERGUSON ENTERPRISES LLC, DBA FERGUSON WATERWORKS 0870389 1/8/2025 WATER METER PARTS 3,479.00 Voucher: 6557 0870392 1/8/2025 WATER METER PARTS 2,354.22 0870912 1/8/2025 WATER METER PARTS 513.74
0870310 1/8/2025 WATER METER PARTS 465.23 6,812.19
6558 1/24/2025 fir13 FIREFIGHTERS PRINT & DESIGN 22036 11/1/2024 SHIFT CALENDARS CY25 1,024.96 1,024.96 Voucher: 6558
6559 1/24/2025 mik03 MIKHAIL OGAWA ENGINEERING11841 1/3/2025 CLEAN WATER SRVCS DEC 16,618.82 Voucher: 6559 11842 1/3/2025 SAN DIEGUITO TMDL DEC 479.11 17,097.93 6560 1/24/2025 pac28 PACIFIC MOBILE STRUCTURES INC INV-00425067 2/1/2025 MOBILE OFFICE PW FEB 246.75 246.75 Voucher: 6560
6561 1/24/2025 pho01 PHOENIX GROUP INFO SYSTEMS 122024036 1/10/2025 CITE SRVCS - DEC 6,328.04 Voucher: 6561 1220241036 1/10/2025 ADMIN CITE SRVCS - DEC 318.30 6,646.34 Page: 1
12 February 3, 2025 Item 02
01/23/2025
Check List
City of Del Mar
2 1:51:05PM
apChkLst Final Page:
Bank : eusbnk EFT GENERAL ACCOUNT US BANK (Continued)
Check # Date Vendor Invoice Inv Date Description Amount Paid Check Total 6562 1/24/2025 pri17 PRISM 25100306 1/13/2025 EWC ADJUSTMENTS 7,215.00 7,215.00 Voucher: 6562
6563 1/24/2025 pru01 PRUDENTIAL OVERALL SUPPLY132294175 1/10/2025 UNIFORMS PW - 1/10 107.29 Voucher: 6563 132294173 1/10/2025 MATS PW - 1/10 15.47
132294174 1/10/2025 SHOP TOWELS PW - 1/10 4.93 127.69
6564 1/24/2025 sca12 SCA OF CA LLC 159033PS 12/27/2024 SWEEPING SRVCS DEC 2,868.10 2,868.10 Voucher: 6564
Sub total for EFT GENERAL ACCOUNT US BANK: 76,641.98
Page: 2
13 February 3, 2025 Item 02
01/23/2025
Check List
City of Del Mar
3 1:51:05PM
apChkLst Final Page:
Bank : gusbnk GENERAL ACCOUNT US BANK
Check # Date Vendor Invoice Inv Date Description Amount Paid Check Total 139226 1/24/2025 ame13 AMERICAN PUBLIC WORKS ASSOC. 000829804 1/22/2025 MBRSHP BRIDE PW 273.00 273.00 Voucher: 139226
139227 1/24/2025 cin02 CINTAS 5249424610 1/16/2025 FIRST AID KIT SUPPLIES CH 192.35 192.35 Voucher: 139227
139228 1/24/2025 cla15 CLAIMS MANAGEMENT ASSOC INC 522168 12/30/2024 CLAIMS ADMIN AUG/OCT 969.90 Voucher: 139228 522167 12/30/2024 CLAIMS ADMIN JUL/OCT 850.65 522173 12/30/2024 CLAIMS ADMIN JUL 588.30
522170 12/30/2024 CLAIMS ADMIN AUG/DEC 325.95
522171 12/30/2024 CLAIMS ADMIN OCT/DEC 318.00
522169 12/30/2024 CLAIMS ADMIN AUG/DEC 143.10
522174 12/30/2024 CLAIMS ADMIN JUL 127.20
522172 12/30/2024 CLAIMS ADMIN AUG/NOV 87.45 3,410.55
139229 1/24/2025 coa10 COASTAL LIVESCAN SERVICES43400 12/31/2024 LIVESCAN SRVC DEC 186.00 186.00 Voucher: 139229
139230 1/24/2025 coa12 COASTAL OCCUPATIONAL MED GRP, DBA: AKESO OCCUPATIONAL H EM010444 1/8/2025 EMPLOYEE TESTING 1,725.00 Voucher: 139230 EM009839 12/20/2024 EMPLOYEE TESTING 702.00 2,427.00 139231 1/24/2025 cum03 CUMMINS, NAHID 01212025 1/21/2025 CITATION REFUND 25.00 25.00 Voucher: 139231
139232 1/24/2025 del06 DEL MAR AUTOMOTIVE SERVICE 49130 1/9/2025 VEHICLE MAINT PW #79 108.66 108.66 Voucher: 139232
139233 1/24/2025 gal02 GALLS LLC 030124946 1/10/2025 UNIFORMS CS 158.89 Voucher: 139233 030063075 1/2/2025 UNIFORMS CS 71.92
030112403 1/9/2025 UNIFORMS CS 42.76
030112400 1/9/2025 UNIFORMS CS 40.93
030088258 1/7/2025 UNIFORMS CS 39.18
030088257 1/7/2025 UNIFORMS CS 36.64 390.32
139234 1/24/2025 mar49 MARTINEZ, TRACY 01212025 1/21/2025 CANDIDATE STMT RFND 91.00 91.00 Voucher: 139234
139235 1/24/2025 mcc21 MCCAIN, OLIVER 01142025 1/14/2025 ADMIN TICKET REFUND 125.00 125.00 Voucher: 139235
139236 1/24/2025 mma01 MMASC 11801 1/22/2025 MBRSHP BROWN 125.00 125.00 Voucher: 139236
139237 1/24/2025 mun11 MUNICIPAL SEWER TOOLS IN-000613 10/30/2024 SEWER SUPPLIES PW 1,498.25 1,498.25 Voucher: 139237
Page: 3
14 February 3, 2025 Item 02
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City of Del Mar
4 1:51:05PM
apChkLst Final Page:
Bank : gusbnk GENERAL ACCOUNT US BANK (Continued)
Check # Date Vendor Invoice Inv Date Description Amount Paid Check Total 139238 1/24/2025 boh02 NANCY K. BOHL INC. DBA:, THE COUNSELING TEAM INTL INV102862 1/6/2025 EAP SERVICES 390.00 390.00 Voucher: 139238
139239 1/24/2025 nat22 NATIONAL TRENCH SAFETY, INC 986201 1/10/2025 STEEL PLATE PW 1,849.93 1,849.93 Voucher: 139239
139240 1/24/2025 con17 OCCUPATIONAL HEALTH CTRS, OF CALIFORNIA, A MEDICAL 85293617 12/11/2024 EMPLOYEE TESTING DEC 195.00 Voucher: 139240 85489954 1/1/2025 EMPLOYEE TESTING DEC 162.00 357.00 139241 1/24/2025 pac05 PACIFIC PIPELINE SUPPLY S100471781.001 1/8/2025 WATER METER PARTS 2,032.34 2,032.34 Voucher: 139241
139242 1/24/2025 par35 PARADIGM MECHANICAL CORP6985 1/9/2025 QUARTERLY AND ANNUAL SERVICE AND 2,062.00 2,062.00 Voucher: 139242
139243 1/24/2025 qui13 QUIRK, DAN 01212025 1/21/2025 CANDIDATE STMT RFND 91.00 91.00 Voucher: 139243
139244 1/24/2025 sig12 SIGNA DIGITAL SOLUTIONS INCAR-S322533 1/10/2025 COPIER CS JAN 205.29 205.29 Voucher: 139244
139245 1/24/2025 sig12 SIGNA DIGITAL SOLUTIONS INC37576098 1/12/2025 COPIER PW JAN 138.74 138.74 Voucher: 139245
139246 1/24/2025 soc06 SOCAL TRUCK ACCESSORIES, AND EQUIPMNT INC 67460 1/13/2025 LIFT GATE PW #4615 4,968.87 Voucher: 139246 67461 1/13/2025 LIFT GATE PW #5431 4,968.87 67462 1/13/2025 FORD MAINT PW 515.27 10,453.01
139247 1/24/2025 spe06 SPELICH, JOHN W. 01212025 1/21/2025 CANDIDATE STMT RFND 91.00 91.00 Voucher: 139247
139248 1/24/2025 rai07 SUNDIP RAI 01172025 1/17/2025 PHCC EVENT REFUND 800.00 800.00 Voucher: 139248
139249 1/24/2025 sup01 SUPERIOR READY MIX CONCRETE LP 471280 1/7/2025 FILL SAND PW 513.83 513.83 Voucher: 139249
139250 1/24/2025 uni31 UNITED SITE SRVCS OF, CALIFORNIA INC 114-13999149 1/9/2025 PORTABLE RESTROOM SRVCS 1,450.85 Voucher: 139250 114-13999152 1/9/2025 PORTABLE RESTROOM SRVCS 265.25 114-13999153 1/9/2025 PORTABLE RESTROOM SRVCS 565.25 2,281.35 139251 1/24/2025 wax02 WAXIE'S ENTERPRISES, LLC. DBA, WAXIE SANITARY SUPPLY 82975786 1/15/2025 JANITORIAL SUPPLIES PW 709.49 Voucher: 139251 82957613 1/7/2025 JANITORIAL SUPPLIES PW 842.70 1,552.19 139252 1/24/2025 gan04 WILLIAM GANDER DM-RT20250111 1/11/2025 SOLAR MONITORING JAN 200.00 200.00 Voucher: 139252
139253 1/24/2025 act03 WILLIAMS SCOTSMAN INC 9022873415 1/15/2025 MOBILE OFFICE PW JAN/DEC 156.12 156.12 Voucher: 139253
Page: 4
15 February 3, 2025 Item 02
01/23/2025
Check List
City of Del Mar
5 1:51:05PM
apChkLst Final Page:
Sub total for GENERAL ACCOUNT US BANK: 32,025.93
Page: 5
16 February 3, 2025 Item 02
01/23/2025
Check List
City of Del Mar
6 1:51:05PM
apChkLst Final Page:
41 checks in this report. Grand Total All Checks: 108,667.91 Page: 6
17 February 3, 2025 Item 02
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:
TO: Honorable Mayor and City Council Members
FROM: Clem Brown, Assistant City Manager
Via Ashley Jones, City Manager
DATE: February 3, 2025
SUBJECT: Approval of the 2025 Legislative Policy Guidelines REQUESTED ACTION/RECOMMENDATION:
Staff recommends that the City Council approve the City’s 2025 Legislative Policy Guidelines (Attachment A).
BACKGROUND:
In 2011, the City Council adopted Legislative Policy Guidelines (Guidelines) to allow the City to take appropriate positions on state and federal legislative and administrative issues that affect the City of Del Mar. The Guidelines are brought forward to the City Council annually for review early in the calendar year and are intended to comprehensively identify and memorialize the City’s position on a broad spectrum of issues. The most recent revisions to the Guidelines were adopted on February 5, 2024.
DISCUSSION/ANALYSIS:
The Guidelines assist the City Council and City staff in representing the City in state and federal advocacy and provide guidance to Council Members or staff who may be called upon by regional, state, and federal officials, or their staff, to represent the City of Del Mar on a wide range of policy issues.
The Guidelines allow the City Council to take the following actions:
• Bring forward a proposed revision to the Guidelines (by two Council Members); • Advocate in support or opposition of legislation in accordance with the Guidelines; • Take a position on a matter in accordance with the Guidelines; • Represent the City on issues outlined in the Guidelines; • Bring periodic updates to Council on important legislative issues; and/or • Seek support for City policy at all levels of the federal and state government, including administrative departments.
1 February 3, 2025 Item 04
City Council Agenda Report
2025 Legislative Policy Guidelines
February 3, 2025
For issues not addressed in the Guidelines, or if there are mitigating factors where the City Council may want to take a position different from those indicated in the Guidelines, the issue shall be considered by the entire City Council for direction.
To review the 2025 Guidelines for potential updates, staff sought feedback from staff, the City’s legislative affairs consultant, Townsend Public Affairs (TPA), and the City Council. No feedback was received; therefore, no changes have been made from the 2024 Guidelines.
Staff recommends the City Council adopt the 2025 Guidelines included as Appendix A.
FISCAL IMPACT:
There is no fiscal impact or action to be taken by the City Council related to this agenda item.
ENVIRONMENTAL IMPACT:
The proposed City Council action does not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because it will not have a potential to result in a direct or indirect physical change in the environment and is, therefore, not subject to CEQA. No further action under CEQA is required.
NEXUS TO CITY COUNCIL GOALS AND PRIORITIES:
This project is an operational item and does not relate to the City Council’s Goals and Priorities.
ATTACHMENTS:
Attachment A – 2025 Legislative Policy Guidelines
2 February 3, 2025 Item 04
2025 LEGISLATIVE
POLICY GUIDELINES
A P PROV ED F EBRUARY 3, 20 25
C I T Y O F D E L M A R
Attachment A 3 February 3, 2025 Item 04
CITY OF DEL MAR
2025 LEGISLATIVE POLICY GUIDELINES
1 INTRODUCTION
The following guidelines shall be utilized by the City to take appropriate positions regarding both State of California and federal legislative and administrative issues that affect the City of Del Mar.
The guidelines are to define City Council approved positions and to assist the City Council and staff in pro-active advocacy and in responding to various issues as they arise so that the City response may be timely, clear, and consistent with City Council direction. The guidelines are also to guide the official positions of Council Members that represent the City on regional and/or local government bodies and in making public statements reflecting City positions. At any time, any two Council Members may recommend changes to the Legislative Policy Guidelines. Individual Council Members retain the right to state personal positions different from these adopted guidelines but only when such statements are identified as a personal expression differing from adopted City positions.
When a legislative matter arises that is addressed in these guidelines, City staff may prepare a letter for the Mayor’s signature taking a position on the matter in accordance with these guidelines. For issues not addressed in these guidelines, or if there are mitigating factors where the City Council may want to take a position different from those indicated in these guidelines, the issue shall be considered by the City Council for direction.
As needed, any two Council Members can provide periodic updates of important legislative issues to the City Council at regular City Council Meetings. The City Council will then have the opportunity to approve a position statement on the issues. The City Council will review the Legislative Policy Guidelines annually to recommend changes prior to the beginning of each legislative session.
If for some reason there is a conflict between City Council adopted goals and these legislative policies, the adopted goals shall supersede these policies.
Guiding Principles
I. Preserve Local Control and Governance
Preserve and protect the City’s authority, duties, and prerogatives to enact local legislation and policy direction concerning local affairs. Oppose legislation that preempts local authority and advocate for the preservation of the City’s ability to raise revenue and provide vital services for its residents.
II. Promote Fiscal Stability
Support measures that promote fiscal stability, predictability, financial solvency, and preserve the City’s revenue base. Maintain maximum control over local government budgeting while opposing measures that shift local funds to the county, state, or federal governments to implement unfunded mandates and other regulatory costs.
III. Support Funding Opportunities for Projects Consistent with City Goals Attachment A 4 February 3, 2025 Item 04
CITY OF DEL MAR
2025 LEGISLATIVE POLICY GUIDELINES
2 Support funding opportunities that allow the City to compete for its fair share of regional, state, and federal funding. Support funding for programs consistent with City goals including but not limited to economic development, infrastructure development, housing, transportation, air quality, climate change, sustainability, water quality, parks and recreation, fairgrounds, hazard mitigation, public safety, and public health.
Support efforts to strengthen, modernize, and provide funding for local emergency response and preparedness capacities.
Support ongoing investments from the State and Federal governments to allow the city to effectively respond to public health emergencies.
Support legislation and budgetary measures that provide funding for local governments to beautify their communities and remove trash and debris.
Attachment A 5 February 3, 2025 Item 04
CITY OF DEL MAR
2025 LEGISLATIVE POLICY GUIDELINES
3 TABLE OF CONTENTS
I. LOCAL GOVERNMENT FINANCE
A. State-Federal Mandated Programs 4
B. Long Term Financing of Local Agencies 4
C. Revenue, Fees and Taxes 4
D. Procurement 5
E. Public Health Relief Measures 5
II. GENERAL GOVERNMENT
A. Workers’ Compensation 5
B. Unemployment Compensation 6
C. Labor Relations 6
D. Pension Reform 6
E. Elections 6
III. PUBLIC PROTECTION
A. Crimes 7
B. Drugs 7
C. Fire Protection 7
D. Homeland Security 8
E. Homelessness 8
F. Aircraft Noise 8
IV. TRANSPORTATION AND PUBLIC WORKS
A. Transportation 8
B. Solid Waste and Recycling 10
C. Public Works 11
D. Utilities Undergrounding 11
V. RESOURCES AND ENVIRONMENT
A. California Environmental Quality Act 11
B. Offshore Drilling 11
C. Waterfront 11
D. Water 12
E. Storm Drain and Sewer 12
F. Regional Growth Management 12
G. Air Quality 13
H. Wetlands 13
I. Energy 13
J. Land Use 14
K. Sea-level Rise and Climate Change 14
VI. RECREATION
A. Funding 15
VII. CITY – 22ND DISTRICT AGRICULTURAL ASSOCIATION RELATIONS A. Jurisdiction and Land Use 15
B. Housing 15
C. Financial Relations 16
D. Events 16
Attachment A 6 February 3, 2025 Item 04
CITY OF DEL MAR
2025 LEGISLATIVE POLICY GUIDELINES
4 I. LOCAL GOVERNMENT FINANCE
A. State-Federal Mandated Programs
1. Support legislation requiring the State and Federal Government to provide full cost reimbursement to cities for all mandated programs and for all programs resulting in revenue losses.
2. Oppose any measure that mandates procedures (such as maintenance-of-effort) that would make local government more dependent on the State for financial stability.
3. Support legislation that further protects local government revenue from being taken, confiscated, shifted, diverted, or otherwise used to fund State government operations and responsibilities.
B. Long-Term Financing of Local Agencies
1. Support legislation to stabilize local government financing, to increase funding to local agencies and to permit the most cost-efficient management of state-mandated programs.
2. Support enhancement of Community Development Block Grant and other Federal funding.
3. Support efforts to create financing options to help local governments encourage sensible affordable housing development.
C. Revenues, Fees and Taxes
1. Support legislation that increases revenues or improves local government’s ability to generate revenue.
2. Support legislation to protect and preserve local control over locally imposed taxes and fees (such as transient occupancy tax, wireless communication infrastructure fees, and franchise fees).
3. Support legislation that would prevent property and sales tax shifting from cities.
4. Support legislation to protect critical local programs, services, and funding from administrative action and/or State budget cuts during the current legislative session.
5. Support legislation that would create cost recovery for local police, fire, and emergency medical services to state properties.
6. Support legislation that would create cost recovery for local non-safety public services to state properties.
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2025 LEGISLATIVE POLICY GUIDELINES
5 7. Support legislation that would amend the State Constitution Article XIIID, Section
6.C. to include storm drain fees among the list of types of fees that are exempt from the voting requirements imposed by Proposition 218.
8. Oppose legislation or administrative action that reduces or reallocates revenues attributable to Del Mar to any other governmental entity, including the County, State, or Federal governments.
9. Support efforts that would authorize local governments to participate in revenue sharing agreements with federal, state, and local agencies, as well as non-profits and community-based organizations.
D. Procurement
1. Oppose legislation that would overly complicate, prolong, or make existing laws pertaining to procurement of goods and services more onerous for local cities.
E. Public Health Relief Measures
1. Support all local, state, and federal legislation or administrative action that provides direct funding relief to cities that have been economically impacted by a public health emergency and/or stay-at-home mandate, including the flexibility to backfill lost revenue.
2. Support all local, state, and federal legislation or administrative action that provides direct relief funding and/or programmatic support for local businesses that have been economically impacted by a public health emergency and/or stay-at-home mandate.
II. GENERAL GOVERNMENT
A. Workers’ Compensation
1. Oppose legislation that would increase employee benefits without system reforms which would offset increased employer costs.
2. Oppose legislation that would provide presumptive eligibility for the award of benefits for Workers’ Compensation or other employee health benefits.
3. Support legislation that would remove existing presumptive eligibility for the award of benefits for Workers’ Compensation or other employee health benefits.
4. Support legislation that would reform the Workers’ Compensation system to reduce employer cost through the reduction of system abuse.
Attachment A 8 February 3, 2025 Item 04
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2025 LEGISLATIVE POLICY GUIDELINES
6 B. Unemployment Compensation
1. Oppose legislation which would increase employer liability for unemployment compensation, or which would reduce local discretion to manage this risk.
C. Labor Relations
1. Oppose legislation that would impede local administration of labor relations.
2. Oppose legislation that would require, impose, or expand compulsory binding arbitration for public employees.
3. Oppose legislation that would increase the cost of benefits, the cost of administering benefits, or mandate that a special group health and welfare benefit be provided to all employees.
4. Oppose legislation that reduces local control over public employee disputes and/or imposes regulations from an outside agency.
5. Oppose legislation that makes disciplinary proceedings for public safety employees similar to criminal proceedings, making it virtually impossible for employers to prove an administrative violation.
6. Oppose legislation restricting the availability of evidence in administrative investigations and hearings involving public safety employees.
7. Support legislation that would categorize employers with 50-99 employees as “Large Group Employers,” for purposes of the Affordable Care Act.
D. Pension Reform
1. Support legislation consistent with the League of California Cities’ recommendations for pension reform that provides sustainable pensions for employees.
2. Support legislation that would allow employees to be able to pay for a greater amount of the pension costs.
3. Support pension reform that would control or decrease employer liability or increase transparency in reporting without imposing undue hardships or administrative burdens on local governments.
E. Elections
1. Support legislation that authorizes the City to conduct a special election wholly by mail or via a secure, online voting system.
Attachment A 9 February 3, 2025 Item 04
CITY OF DEL MAR
2025 LEGISLATIVE POLICY GUIDELINES
7 III. PUBLIC PROTECTION
A. Crimes
1. Support legislation that would protect the public from the dangerous and improper use of weapons and enact necessary regulations to control their use.
2. Pursuant to Resolution 2013-09, support legislation that bans the sale, transfer, manufacturing, and importation of military-style assault weapons and highcapacity ammunition magazines.
3. Oppose legislation that would weaken the authority of local law enforcement to control the issuance of concealed weapon permits.
4. Support legislation that strengthens State graffiti law and provides local government revenue and resources for graffiti abatement.
5. Support legislation that would protect the public from crimes, including identity theft, committed by use of computers, Internet or other electronic means.
B. Drugs
1. Support legislation that strengthens the ability of local government to restrict or regulate the sale, manufacture, and the use of alcohol, electronic smoking devices and flavored tobacco products, and/or other controlled substances.
2. Support legislation that would provide a greater share of seized assets to localities.
C. Fire Protection
1. Support legislation protecting local discretion regarding building and fire code standards.
2. Support legislation that provides funding for local emergency operations including equipment, services, and personnel.
3. Support legislation that provides funding to enhance wildfire mitigation and emergency response efforts.
4. Oppose legislation and administrative action that would change or eliminate inverse condemnation and make utilities not liable for fires caused by their equipment with consideration of the conduct of the utility in the design, operation and maintenance Attachment A 10 February 3, 2025 Item 04
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2025 LEGISLATIVE POLICY GUIDELINES
8 of its assets, and with consideration of factors outside of the control of the utility such as extreme climate.
5. Support legislation and administrative action that requires utilities to work cooperatively with local government to plan for reducing wildfire risks.
6. Support legislation that would sustain or enhance federal homeland security grants.
D. Homeland Security
1. Support legislation that would encourage community safety and provide funding for Homeland Security measures.
2. Support legislation that would require communicating with city officials regarding threats to local safety, as threats occur.
E. Homelessness
1. Support legislation that would provide funding for mental health resources and housing solutions for the homeless and facilitate inter-agency partnerships and shared resources to collaborate on solutions between regional agencies.
F. Aircraft Noise
1. Support legislation and regulations that promotes the reduction of aircraft noise impacting the City.
2. Support legislative and regulatory efforts to monitor, regulate and enforce helicopter noise in residential areas while being respectful of United States Military, law enforcement and emergency first responder operations.
IV. TRANSPORTATION AND PUBLIC WORKS
A. Transportation
1. Support legislation to enable SANDAG and local cities and the county to update the Regional Transportation Plan and take actions to enhance transit options based on clean vehicles and technology over carbon fueled motor vehicles.
2. Support legislation and administrative action that promote alternative clean fuel vehicles and their support facilities.
3. Support legislation and administrative action that facilitates innovation in transportation options including autonomous vehicles.
Attachment A 11 February 3, 2025 Item 04
CITY OF DEL MAR
2025 LEGISLATIVE POLICY GUIDELINES
9 4. Support legislation and administrative action that promotes options to single occupancy carbon fueled car travel such as rapid bus lanes and service, HOV lanes, rail, shared use vehicles, autonomous, and on demand systems.
5. Support legislation that provides equitable amounts of Federal and State funding for roads, and highways, and transit and facilitates in the timely construction of local transportation projects.
6. Support legislation that reaffirms Federal and State responsibility for transportation including but not limited to highway funding.
7. Support legislation to authorize financial incentives for employees who commute to work in carpools, use public transportation, or utilize clean modes of transportation, such as bicycling and electric vehicles.
8. Support funding for increased bike lanes, and associated infrastructure (e.g., lighting and traffic barriers), to provide safe, accessible, and strategic bike routes for both commuters and recreational users.
9. Support legislation that provides funding from SANDAG, the Federal, and/or the State Government for the planning and construction of the following types of improvements at the Del Mar Fairgrounds: seasonal and permanent rail platform; affordable housing; mobility hubs; fleet mobility services; and micro-mobility solutions.
10. Support legislation and funding to promote and construct safe pedestrian railroad crossings, including at-grade crossings where over/underpass crossings are not feasible.
11. Support funding for studies where at-grade and/or over/underpass pedestrian railroad crossings are feasible.
12. Support legislation and administrative action at the Federal and State level to minimize or eliminate the liability of local governments, including cities and transit districts, for rail accidents involving pedestrians or vehicles. Support railroad safety measures, including dedicated safe crossings, while upholding public stewardship and self-governance to protect precious coastal resources, scenic views, and public access to bluffs, trails, beaches, and the ocean.
13. Support legislation to allow non-ADA compliant over/underpasses to cross rails to access the beach where there is an ADA compliant access point nearby.
14. Support Federal and State legislation and administrative action to further mobility strategies that encourage alternative forms of transportation to reduce reliance on automobiles.
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CITY OF DEL MAR
2025 LEGISLATIVE POLICY GUIDELINES
10 15. Support legislation, funding opportunities, and administrative action to further electric and zero emission vehicles and their needed support services.
16. Support legislation and administrative action to help local governments manage transportation issues to further their adopted Climate Action Plan goals.
17. Support legislation, funding, and administrative action to accelerate relocation of the rail line from the Del Mar bluffs to an appropriate inland location.
18. Support legislation, funding, and administrative action for interim repairs on the Del Mar bluffs to keep the rail line safe until it can be relocated inland, including full mitigation for any impacts of interim repairs.
B. Solid Waste and Recycling
1. Support legislation that would assist local agencies in implementing recycling and diversion programs.
2. Support legislation that encourages the State to provide funding for added costs of implementing mandatory solid waste, household hazardous waste, organics diversion, and recycling programs to local agencies.
3. Support legislation that sets reasonable and flexible recycling standards.
4. Support legislation that would exempt a city from AB 939 or other state legislation penalties due to a State installation’s excessive contribution to the city’s waste stream.
5. Support legislation encouraging active development of markets for recycled goods.
6. Support legislation requiring local agencies to prepare and implement household hazardous waste collection plans and provide funding therefore.
7. Support legislation that reduces local government's superfund liability for solid waste.
8. Support legislation that promotes or provides funding for zero waste programs, composting programs, and other programs for addressing organic waste.
9. Support legislation that addresses plastics and other difficult to recycle/manage pollutants at the source by shifting from producing and using such materials to alternatives that reduce the need to recycle or landfill waste.
10. Support measures that provide flexibility for local jurisdictions to meet mandated short lived-climate pollutant goals set by the State through SB 1383 and other mandatory organics recycling regulations.
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2025 LEGISLATIVE POLICY GUIDELINES
11 11. Oppose solid waste regulations without coordinated support and funding from the State and waste haulers.
C. Public Works
1. Support legislation that would address poor performance by contractors selected under low bid contract requirements.
1. Support legislation that would allow all cities to use design build or other delivery methods for constructing capital improvement programs.
D. Utilities Undergrounding
1. Support legislation and administrative action that would help facilitate the implementation of the City’s Undergrounding Project, including advocating to the California Public Utilities Commission to issue rulemaking that would make undergrounding projects more cost effective.
V. RESOURCES AND ENVIRONMENT
A. California Environmental Quality Act
1. Oppose legislation that would weaken or substitute the CEQA requirements in favor of a lesser process, such as National Environmental Policy Act (NEPA).
B. Offshore Drilling
1. Oppose legislation that includes any San Diego coastal areas in the lease sale program.
2. Support legislation that provides for oil spill prevention and response.
3. Support legislation that creates a Coastal Sanctuary that prohibits a state agency from entering into a new lease for the extraction of oil in state waters.
4. Oppose any legislation that increases gas or oil drilling off the coast of California.
C. Waterfront
1. Support legislation that provides funding for waterfront coastal restoration, protection, and enhancement.
2. Support efforts to protect the San Dieguito Lagoon and the Los Peñasquitos Lagoon.
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CITY OF DEL MAR
2025 LEGISLATIVE POLICY GUIDELINES
12 3. Support legislation, administrative action, and provision of funding to assist in implementation of the City’s Sea Level Rise Adaptation Plan.
D. Water
1. Support legislative efforts to improve the potable water quality in San Diego County.
2. Support legislation to provide Southern California with a stable source of water.
3. Support legislation that would provide incentives and funding for alternative water sources and for water conservation measures sponsored by local agencies.
4. Support legislation that would advance the opportunity to secure and utilize reclaimed/recycled water.
5. Support legislation that will require a showing of the availability of potable water in connection with any new development in San Diego County.
6. Support legislation, policies or practices that would decrease pollution to the ocean or waterways.
E. Storm Drain and Sewer
1. Support legislation to provide funding for mitigation measures and projects to reuse, recharge, divert, or treat urban runoff.
2. Oppose legislation that imposes more stringent requirements on storm drain runoff without providing funding and/or consideration of the feasibility of monitoring and mitigation of such requirements.
3. Monitor any new or reviewed requirements by State or Federal agencies for testing water quality and water body closures.
4. Support state and federal legislation and administrative action to encourage reclamation and recycling of wastewater from the Metro Waste Water System and the San Elijo Joint Powers Authority for potable and purple pipe reuse.
F. Regional Growth Management
1. Support legislation that would produce additional resources, including adequate funding, to local agencies to address regional growth and transportation issues.
2. Support legislation and administrative action that would encourage managing growth in a manner that is consistent with State and local climate action goals of reducing vehicle miles travelled and greenhouse gas emissions.
Attachment A 15 February 3, 2025 Item 04
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2025 LEGISLATIVE POLICY GUIDELINES
13 G. Air Quality
1. Support legislation to improve the air quality in San Diego County.
2. Support legislation that allocates State and/or Federal funds for compliance with Federal and State air quality standards.
3. Support legislation that would provide funding for zero emission vehicles and their support infrastructure.
H. Wetlands
1. Oppose legislation that adversely impacts the wetlands.
2. Support legislation that provides funding for the acquisition, enhancement and protection of wetlands and wildlife habitat.
3. Support legislative and administrative actions to allow wetlands to adapt to climate change and rising sea levels without loss of habitat value.
I. Energy
1. Support legislation that effectively stabilizes energy availability and reduces energy costs.
2. Support legislation that would provide funding for alternative energy sources, energy efficiency, energy storage, and conservation measures.
3. Support legislation that provides for the safe decommissioning/removal of nuclear material at the San Onofre Nuclear Generating Station (SONGS).
4. Support legislation at the federal and state levels to allow for removal of nuclear waste from SONGS to a safe inland temporary storage location pending federal identification of a permanent storage option. Oppose ongoing storing this waste on the beach at SONGS.
5. Support Community Choice Aggregation (CCA) [also known as Community Choice Energy (CCE)] and the Clean Energy Alliance to allow residents and businesses the option to purchase clean energy from renewable sources and oppose any efforts to impede CCA's/CCE’s, including but not limited to, increased departure charges.
6. Support CCA programs including the Clean Energy Alliance that pursue distributed energy, community solar, micro grid projects, and similar local programs of benefit to the city.
Attachment A 16 February 3, 2025 Item 04
CITY OF DEL MAR
2025 LEGISLATIVE POLICY GUIDELINES
14 J. Land Use
1. Oppose legislation that takes a punitive approach to City General Plan Housing Element and the imposition of any extraordinary powers in State agencies with regard to City Housing Elements.
2. Support legislation to allow local governments flexibility in how they meet their state mandated housing goals.
3. Support legislation that allows jurisdictions to review, validate, and raise concerns regarding Regional Housing Needs Allocation (RHNA) data and methodologies prior to approval and takes into consideration unique situations (e.g., Fairgrounds).
4. Oppose legislation, or other agency actions, that would usurp local control of land use decision-making.
5. Oppose legislation that would impose State-mandated development standards or procedures that are contrary to the Del Mar Community Plan or local land use policy.
6. Oppose legislation that is inflexible and cannot be modified through local review.
7. Monitor proposals that would alter air traffic systems that would impact Del Mar.
8. Support legislation to reaffirm that regulation of short-term rentals is a local matter.
9. Oppose legislation to reduce or encroach upon the autonomy of Charter Cities as to home rule powers, including as to land use, housing, and zoning.
K. Sea-Level Rise and Climate Change
1. Support legislation that continues to monitor sea-level rise and climate change and the effect on local jurisdictions.
2. Support legislation that would provide local jurisdictions funding for resilience and response to sea-level rise and climate change.
3. Support legislation that allows local governments flexibility in how they implement sea level rise and climate change adaptation goals and meet federal and state flood management standards.
4. Support legislation and administrative action at the federal and state level to provide funding and assistance to coastal cities addressing adaptation to sea level rise and increased flooding risks.
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2025 LEGISLATIVE POLICY GUIDELINES
15 5. Support legislation and administrative action at the federal and state level to increase funding for local governments implementing sand replenishment and other adopted strategies for addressing sea level rise.
6. Support legislation, funding, and administrative action to remove sediment accumulation in the regions coastal lagoons and upstream behind dams and use it for beach sand replenishment.
VI. RECREATION
A. Funding
1. Support legislation that would provide funds for local and regional recreation areas, parks, trails, facilities, and services including visitor parking facilities.
VII. CITY – 22ND DAA RELATIONS
A. Jurisdiction and Land Use
1. Support legislation and Coastal Commission findings that reaffirm the limits of the sovereign powers of the 22nd DAA to its governmental mandate to promote California Agriculture, business, and products.
2. Support legislation that subjects all activities conducted on the Fairgrounds to local health, safety, and noise ordinances.
3. Support legislation to allow the City of Del Mar to obtain credit for affordable housing programs on 22nd DAA property within or contiguous to the city.
4. Support legislation to allow the 22nd DAA to engage in all types of transactions with the city to further affordable housing programs, including leases, sales, joint ventures partnerships, Joint Powers Agreements, and the like.
5. Oppose efforts that require the City to ministerially approve housing development projects without adequate input from local agencies or a robust public engagement process.
B. Housing
1. Support legislation and administrative action that facilitates the 22nd DAA to provide on-site affordable housing, including work force housing, to help the City meet its assigned Regional Housing Needs Assessment (RHNA) requirements for affordable housing requirements attributable to the number of employees who work Attachment A 18 February 3, 2025 Item 04
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2025 LEGISLATIVE POLICY GUIDELINES
16 at the Fairgrounds and because the State property accounts for approximately 25% of the City’s total land area.
2. Support legislation to allow local implementation of creative solutions to local housing needs while gaining RHNA credit, such as: student housing programs implemented in conjunction with local universities and community colleges and housing on the Del Mar Fairgrounds.
3. Support legislative and administrative action to confirm that local governments can adopt local rules clarifying that Accessory Dwelling Units (ADUs) can be used only for housing.
C. Financial Relationship
1. Support legislation and administrative action to cause the 22nd DAA to pay for its fair share of municipal services and road and bridge maintenance and repairs.
2. Support legislation and administrative action to encourage the State Department of General Services to reduce the rent of the Del Mar Fire Station.
3. Support legislation and administrative action that would give Del Mar a revenue share for sports gaming, concerts, and other revenue activities on 22nd DAA property within the city limits.
D. Events
1. Oppose legislation or administrative action that would overturn prohibitions on the sale of firearms and ammunition at the Del Mar Fairground.
2. Support legislation or requirements that prohibit on-site smoking, on-site consumption, or on-site sale of cannabis products at state fairgrounds where the local city prohibits such use.
Attachment A 19 February 3, 2025 Item 04
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:
TO: Honorable Mayor and City Councilmembers
FROM: Michael D’Aquila, Public Works Operation Manager
Kseniia Izgarskaia, Senior Management Analyst
Joe Bride, Public Works Director
Via Ashley Jones, City Manager
DATE: February 3, 2025
SUBJECT: First Amendment to Agreement for Citywide Janitorial Services REQUESTED ACTION/RECOMMENDATION:
Staff recommends that the City Council: 1) Approve a First Amendment to the Agreement for Citywide Janitorial Services (Agreement) with Aztec Janitorial Service (Attachment A) to amend the service schedule and fee schedule; and 2) Authorize the City Manager to execute the First Amendment.
BACKGROUND:
On May 20, 2024, the City Council authorized the City to enter into the Agreement with Aztec Janitorial Service (Contractor) to provide citywide janitorial services for an initial three-year period effective June 1, 2024, through May 31, 2027. Citywide janitorial services include cleaning of the Civic Center, Public Works Administrative Building, seasonal porter service for three public restrooms located at Powerhouse Park and 17th and 25th Streets, and as-needed support for City sponsored events.
DISCUSSION/ANALYSIS:
The Agreement currently requires the Contractor to provide janitorial services at the Public Works Administrative Building on Tuesdays and Fridays of each week. City staff recommends amending the Public Works service schedule to Mondays and Thursdays, instead of Tuesdays and Fridays. This will allow the Contractor to better accommodate the staff’s typical weekly workload, decrease operational disruption, and allow for better quality oversight by the Public Works maintenance staff on these weekdays. The Amendment would not impact the janitorial services frequency or schedule to any other City facilities.
Additionally, it is recommended to amend the Agreement’s fee schedule to include a cost mark-up to the Contractor-supplied consumables. Consumables include, but are not limited to: toilet paper, paper towels, sanitary toilet seat covers, anti-bacterial soap, 1 February 3, 2025 Item 05
City Council Agenda Report
First Amendment to the Agreement for Citywide Janitorial Services February 3, 2025
sanitary napkins, plastic liners, trash liners, etc. Currently, the Contractor supplies all janitorial supplies, consumables, and equipment for the execution of the scope of work at no additional cost to the City. The City is billed for consumables at face value separately from the scheduled hourly services.
It is a standard practice in the janitorial industry to bill the customer for consumables and include a modest mark-up for the furnished products. The City’s Request for Proposals for janitorial services stated that the cost of consumables would be negotiated after the contract award. The City and Contractor negotiated a 15% mark-up but it was inadvertently omitted from the original contract (Attachment B), and it is now burdensome for the Contractor to continue supplying consumables at face value. As such, the Contractor has requested formalizing the previously negotiated 15% mark-up through a contract amendment and implement the consumables mark-up charges moving forward.
FISCAL IMPACT:
There is no fiscal impact resulting from the change to the Public Works Administrative Services Building service days schedule. Staff estimates that adding a 15% mark-up for consumables will result in approximately $3,000 annual cost increase to the janitorial services. There is no fiscal action to be taken by the City Council related to this agenda item because sufficient funds for the increase in janitorial consumables cost are available in the approved Fiscal Year 2024-2025 Operating and Capital budget. Funds for these services in future years will be included in the proposed Operating & Capital budgets for Council consideration.
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:
This is an operational item and is not included in the City Council’s list of Goals & Priorities.
ATTACHMENTS:
Attachment A – First Amendment to Agreement for Citywide Janitorial Services Attachment B – Original Agreement for Citywide Janitorial Services 2 February 3, 2025 Item 05
FIRST AMENDMENT TO AGREEMENT BETWEEN THE CITY OF DEL MAR
AND AZTEC JANITORIAL SERVICE FOR CITYWIDE JANITORIAL SERVICES THIS FIRST AMENDMENT to the Agreement (First Amendment) is made and entered into effective February 3, 2025, by and between the City of Del Mar, a Charter City and municipal corporation (“City”), and Aztec Landscaping, Inc. dba Aztec Janitorial Service (“Contractor”) (collectively “Parties”).
RECITALS
WHEREAS, on June 1, 2024, the City and Contractor entered into an Agreement (Agreement), by which the City and Contractor established the terms and conditions for providing Citywide Janitorial Services and
WHEREAS, the City desires to amend the Agreement to reflect adjustments to the schedule of services as agreed upon by the Parties and to update the fee schedule for consumables to be provided by the Contractor; and
WHEREAS, the First Amendment is necessary in order to amend Exhibit “A” and Exhibit “B” of the Agreement to reflect these changes.
NOW, THEREFORE, the Parties hereby agree to amend the Agreement as follows:
Section 1. Exhibit A to the Agreement (“Scope of Services”) is hereby amended as reflected in Exhibit A attached to this First Amendment adjusting the schedule of services.
Section 2. Exhibit B to the Agreement (“Fee Schedule”) is hereby amended as reflected in Exhibit B attached to by this First Amendment to include a fee schedule of consumables.
Section 3. Except as otherwise provided in this First Amendment, all terms and conditions, and attachments and exhibits thereto, of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have caused this First Amendment to be effective as of the date first written above.
[Signatures on Following Page]
3 February 3, 2025 Item 05
City of Del Mar
First Amendment to Citywide Janitorial Services
CITY OF DEL MAR,
a municipal corporation
By:
Ashley Jones, City Manager
AZTEC JANITORIAL SERVICE
By:
Genaro Garcia, Chief Financial
Officer
ATTEST:
By:
Sarah Krietor, Administrative Services
Manager/City Clerk
APPROVED AS TO FORM:
By:
Leslie E. Devaney, City Attorney
4 February 3, 2025 Item 05
City of Del Mar
First Amendment to Citywide Janitorial Services
Exhibit “A”
Scope of Services
1. Update the Time of Service in Paragraph II Facilities Serviced, Item 2, as follows:
Location Time of Service Frequency of Service and instructions
2. Public Works Yard – 2240
Jimmy Durante Blvd., Main
Building: 800 sq. ft., Trailer
1: 133 sq. ft., Trailer 2: 279
sq. ft.
Monday and Thursday
after 4:30 pm
Twice a Week: Offices, annex trailers,
kitchen, restrooms, and common areas
including tile, carpet, furniture, counter
tops, desks, and appliances
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City of Del Mar
First Amendment to Citywide Janitorial Services
Exhibit “B”
Fee Schedule
The Fee Schedule shall be updated to add a new Paragraph C as follows:
C. Consumables. A mark-up of 15% on consumables furnished by the Contractor, as defined in Section 5.1 of Exhibit “A” of the original Agreement, shall be included in the monthly bill to the City. Prices do not reflect sales tax. Consumables shall be billed separately from the hourly services listed in Sections A and B of Exhibit “B” Fee Schedule.
An annual approved supply list of products with face-value purchase prices shall be submitted to the City for review and approval at the beginning of each fiscal year (July).
Additional consumables may be added as approved by the City. 6 February 3, 2025 Item 05
PROFESSIONAL SERVICES AGREEMENT BETWEEN
THE CITY OF DEL MAR AND AZTEC JANITORIAL SERVICES
FOR CITYWIDE JANITORIAL SERVICES
This Professional Services Agreement (“Agreement”) is made and entered into this 1st day of June, 2024 by and between the City of Del Mar, a Charter City and a municipal corporation (“City”), and Aztec Landscaping, Inc. dba Aztec Janitorial Services (“Contractor”) (collectively “Parties”).
WHEREAS, the City desires to employ a Contractor to provide Citywide Janitorial Services (“Consulting Services”). Said work is to be performed in accordance with the terms and conditions set forth below and as described in the scope of services, attached hereto as Exhibit “A” and incorporated herein; and
WHEREAS, the City has initially determined that Contractor is qualified by experience and ability to perform the services desired by City, and Contractor is willing to perform such services; and
WHEREAS, Contractor will conduct all the work as described and detailed in this Agreement to be provided to the City.
NOW, THEREFORE, the Parties hereto mutually covenant and agree with each other as follows:
1. CONSULTING SERVICES.
1.1 Scope of Services. The Contractor shall perform the Consulting Services as set forth in the written Scope of Services, attached hereto as Exhibit “A” and incorporated herein. Such services shall be provided at the direction of the City.
1.2. Project Coordinator. The Public Works Operations Manager is hereby designated as the Project Coordinator for City and will monitor the progress and execution of this Agreement. Marcy Grismer is hereby designated as the Project Director for Contractor. City shall provide Contractor access to appropriate staff and resources for the coordination and provision of services.
1.3. City Modification of Scope of Services. City may order changes to the Scope of Services within the general scope of this Agreement consisting of additions, deletions, or other revisions. If such changes cause a change in the Contractor’s cost of, or time required for, completion of the Scope of Services, an equitable adjustment to Contractor’s compensation and/or contract time shall be made, subject to the City’s approval. All such changes shall be authorized in writing, executed by Contractor and City. If such a change results in an extension of the term of this Agreement or increases the maximum amount to be paid under this Agreement, no such change shall have any force or effect unless an amendment to this Agreement is approved by the City Council.
2. DURATION OF AGREEMENT.
2.1 Term, Time for Performance. This Agreement shall be effective for a period of three (3) years beginning on June 1, 2024, and ending on May 31, 2027. The agreement may be extended for an additional two (2) year period, upon written agreement of the Parties. 7 February 3, 2025 Item 05
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Time is of the essence for this Agreement and each provision of this Agreement, unless otherwise specified in this Agreement.
2.2 Delay. Any delay occasioned by causes beyond the control of Contractor may merit an extension of time for the completion of the Scope of Services. When such delay occurs, Contractor shall immediately notify the Project Coordinator in writing of the cause and the extent of the delay, whereupon the Project Coordinator shall ascertain the facts and the extent of the delay and grant an extension of time for the completion of the Consulting Services when justified by the circumstances provided that no extension of time shall be granted which would extend the time for performance beyond the date specified in section 2.1 above.
2.3 City’s Right to Terminate for Default. Should Contractor be in default of any covenant or condition hereof, City may immediately terminate this Agreement for cause if Contractor fails to cure the default within ten (10) calendar days of receiving written notice of the default.
2.4 City’s Right to Terminate without Cause. Without limiting its rights in the event of Contractor’s default, City may terminate this Agreement, without cause, by giving written notice to Contractor. Such termination shall be effective upon receipt of the written notice.
Contractor shall be compensated for all effort and material expended on behalf of City under the terms of this Agreement, up to the effective date of termination. All personal property remaining in City facilities or on City property thirty (30) days after the expiration or termination of this Agreement shall be, at City’s election, considered the property of City.
3. PERFORMANCE AFTER TERMINATION. Upon termination of this Agreement as provided herein, Contractor shall, within such reasonable time period as may be directed by City Manager, complete those items of work which are in various stages of completion and which City Manager determines are necessary to be completed by Contractor to allow the project to be completed in a timely, logical, and orderly manner. Upon termination, all finished or unfinished documents, data, studies, surveys, drawings, models, photographs, reports, and other materials prepared by Contractor shall be delivered to the City Manager, upon his request, as property of City.
4. COMPENSATION.
4.1 Total Amount. Compensation to Contractor shall be provided in accordance with the rates described in the Fee Schedule contained in Exhibit “B”. Contractor shall bill the City for work provided and shall present a written request for such payment monthly.
City shall pay all invoices in arrears and shall in no event be required to pay for any services provided by Contractor in advance. Contractor acknowledges that it is not guaranteed any particular amount of work.
4.2 Additional Services. City may, as the need arises or in the event of an emergency, request additional services of Contractor. Should such additional services be required, Compensation therefore shall be paid to the Contractor in accordance with Scope of Services contained in Exhibit “A.” City and Contractor shall agree to the costs prior to commencement of such work.
5. INDEPENDENT CONTRACTOR. Contractor is, for all purposes arising out of this Agreement, an independent contractor. The Contractor has and shall retain the right to exercise full control and supervision of all persons assisting the Contractor in the performance of said 8 February 3, 2025 Item 05
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services hereunder, the City only being concerned with the finished results of the work being performed. Neither Contractor nor Contractor’s employees shall in any event be entitled to any benefits to which City employees are entitled, including, but not limited to, overtime, any retirement benefits, workers’ compensation benefits, any injury leave or other leave benefits, Contractor being solely responsible for all such matters, as well as, compliance with social security and income tax withholding and all other regulations and laws governing such matters.
6. STATEMENT OF EXPERIENCE. Contractor agrees that it has the financial resources, service experience, completion ability, personnel, and experience in dealing with public agencies necessary for performing the Scope of Services and that such performance shall be in accordance with the standards customarily adhered to by an experienced and competent Contractor using the degree of care and skill ordinarily exercised by reputable Contractors practicing in the same field of service in the State of California. By executing this Agreement, Contractor represents that it has demonstrated trustworthiness and possesses the quality, fitness, and capacity to perform the Agreement in a manner satisfactory to City. Additionally, Contractor and all of Contractor’s employees or agents shall secure and maintain in force such permits and licenses as are required by law in connection with the furnishing of services pursuant to this Agreement.
7. AUDIT OF RECORDS.
7.1 At any time during normal business hours and as often as may be deemed necessary, the Contractor shall make available to a representative of City for examination all of its records with respect to all matters covered by this Agreement and shall permit City to audit, examine, and/or reproduce such records. Contractor shall retain such financial and program service records for at least four (4) years after termination or final payment under this Agreement.
7.2 The Contractor shall include the City’s right to audit under this section in any and all of their subcontracts, and shall ensure that these sections are binding upon all subcontractors.
8. CONFIDENTIALITY. All Consulting services performed by Contractor, including, but not limited to, all drafts, data, correspondence, proposals, reports, research and estimates compiled or composed by Contractor, pursuant to this Agreement, are for the sole use of the City, its agents and employees. Neither the documents nor their contents shall be released to any third party without the prior written consent of the City. This provision does not apply to information that (a) was publicly known, or otherwise known to Contractor, at the time that it was disclosed to Contractor by the City, (b) subsequently becomes publicly known through no act or omission of Contractor or (c) otherwise becomes known to Contractor other than through disclosure by the City. Except for any subcontractors that may be allowed upon prior agreement, neither the documents nor their contents shall be released to any third party without the prior written consent of the City. The sole purpose of this section is to prevent disclosure of City’s confidential and proprietary information by Contractor or subcontractors.
9. CONFLICTS OF INTEREST.
9.1 Contractor shall at all times comply with all federal, state and local conflict of interest laws, regulations, and policies applicable to public contracts and procurement practices, including, but not limited to, California Government Code §§ 81000 et seq. (Political Reform Act) and §§ 1090 et seq. Contractor shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the City in which the 9 February 3, 2025 Item 05
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Contractor has a financial interest as defined in Government Code § 87103. Contractor represents that it has no knowledge of any financial interests, which would require it to disqualify itself from any matter on which it might perform services for the City.
9.2 Contractor shall comply with all of the reporting requirements of the Political Reform Act. The Contractor shall file a Fair Political Practices Commission Form 700 (Assuming Office Statement) within thirty (30) calendar days of the City’s determination that the Contractor is subject to a conflict of interest code, if applicable. The Contractor shall also file a Form 700 (Annual Statement) on or before April 1, disclosing any financial interests held during the previous calendar year for which the Contractor was subject to a conflict of interest code.
9.3 If, in performing the Consulting Services set forth in this Agreement, the Contractor makes, or participates in, a “governmental decision” as described in Title 2, section 18701(a)(2) of the California Code of Regulations, or performs the same or substantially all the same duties for the City that would otherwise be performed by a City employee holding a position specified in the department's conflict of interest code, the Contractor shall be subject to a conflict of interest code requiring the completion of one or more statements of economic interests disclosing the Contractor’s relevant financial interests.
10. OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps, models, photographs and reports prepared by Contractor under this Agreement shall be considered the property of City. Contractor shall be permitted to reference and use said materials for use in future studies, work, and marketing so long as said materials are considered “public documents” and are not subject to attorney-client privilege, or the subject of pending closed or executive session discussions.
11. INSURANCE
11.1 Contractor shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, their agents, representatives, employees or subcontractors. Insurance shall be placed with insurers with a current A.M. Best’s rating of no less than “A” and “VII” and are admitted to do business in the State of California, unless otherwise approved in writing by the City’s Risk Manager.
11.2 Contractor’s liabilities, including but not limited to Contractor’s indemnity obligations, under this Agreement, shall not be deemed limited in any way to the insurance coverage required herein. All policies of insurance required hereunder must provide that the City is entitled to thirty (30) days prior written notice (ten (10) days for cancellation due to non-payment of premium) of cancellation or non-renewal of the policy or policies. Maintenance of specified insurance coverage is a material element of this Agreement.
11.3 Types and Amounts Required. Contractor shall maintain, at minimum, the following insurance coverage for the duration of this Agreement:
11.3.1 Commercial General Liability (CGL). Insurance written on an ISO Occurrence form CG 00 01 07 98 or equivalent providing coverage at least as broad which shall cover liability arising from any and all personal injury or property damage in the amount of $1,000,000 per occurrence and subject to an annual aggregate of $2,000,000. There shall be no 10 February 3, 2025 Item 05
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endorsement or modification of the CGL limiting the scope of coverage for either insured vs. insured claims or contractual liability. All defense costs shall be outside the limits of the policy.
11.3.2 Commercial Automobile Liability. For all of the Contractor's automobiles including owned, hired and non-owned automobiles, automobile insurance written on an ISO form CA 00 01 12 90 or a later version of this form or an equivalent form providing coverage at least as broad for bodily injury and property damage for a combined single limit of $300,000 per occurrence. Insurance certificate shall reflect coverage for any automobile (any auto).
11.3.3 Workers' Compensation. For all of the Contractor's employees who are subject to this Agreement and to the extent required by applicable state or federal law, a Workers' Compensation policy providing at minimum $1,000,000 employers' liability coverage.
The Contractor shall provide an endorsement that the insurer waives the right of subrogation against the City and its respective elected officials, officers, employees, agents and representatives.
11.4 Deductibles and Self-Insured Retentions. Any deductibles or selfinsured retentions are the responsibility of the Contractor and must be declared to and approved by the City. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees, and volunteers, or (2) the Contractor shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses.
11.5 Additional Required Provisions. The commercial general liability and automobile liability policies shall contain, or be endorsed to contain, the following provisions:
11.5.1 The City, its officers, officials, employees, and representatives shall be named as additional insureds. The City's Additional Insured status must be reflected on additional insured endorsement form which shall be submitted to the City.
11.5.2 The policies are primary and non-contributory to any insurance that may be carried by the City, as reflected in an endorsement which shall be submitted to the City.
11.6 Verification of Coverage. Contractor shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this Section 11. The endorsement should be on forms provided by the City or on other than the City’s forms provided those endorsements conform to City requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time.
12. DEFENSE AND INDEMNIFICATION.
12.1 Contractor agrees to indemnify, defend (with attorneys approved by City), and hold harmless the City, and its officers, officials, agents and employees (the “Indemnified Parties”) from any and all claims, demands, costs or liability that arise out of, or pertain to, or relate to the Contractor, its employees, agents, and subcontractors performance of services under this Agreement. Contractor’s duty to indemnify under this section shall not include liability for damages for death or bodily injury to persons, injury to property, or other loss, damage or expense 11 February 3, 2025 Item 05
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arising from the sole negligence or willful misconduct by the City or its elected officials, officers, agents, and employees. Contractor's indemnification obligations shall not be limited by the insurance provisions of this Agreement. The Parties expressly agree that any payment, attorney's fees, costs or expense City incurs or makes to or on behalf of an injured employee under the City's self-administered workers' compensation is included as a loss, expense, or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement.
12.2 This indemnity is in addition to any other rights or remedies which City may have under the law or this Agreement. In the event of any claim or demand made against any party which is entitled to be indemnified hereunder, City may, at its sole discretion, reserve, retain or apply any monies due to Contractor under this Agreement for the purpose of resolving such claims; provided however, that City may release such funds if Contractor provides City with reasonable assurances of protection of the City's interest. The City shall, in its sole discretion determine whether such assurances are reasonable.
12.3 Contractor agrees that its duty to defend arises upon an allegation of liability based upon the performance of services under this Agreement by Contractor, its officers, agents, representatives, employees, sub-Contractors, or anyone for whom Contractor is liable and that an adjudication of Contractor’s liability is not a condition precedent to Contractor's duty to defend.
13. SUBCONTRACTORS.
13.1 The Contractor’s hiring or retaining of third parties (i.e. subcontractors) to perform services related to the Project is subject to prior approval by the City.
13.2 All contracts entered into between the Contractor and its subcontractor shall also provide that each subcontractor shall obtain insurance policies, which shall be kept in full force and effect during any and all work on this Project and for the duration of this Agreement.
The Contractor shall require the subcontractor to obtain all policies described in section 11 of this Agreement in the amounts required by the City, which shall not be greater than the amounts required of the Contractor.
13.3 In any dispute between the Contractor and its subcontractors, the City shall not be made a party to any judicial or administrative proceeding to resolve the dispute. The Contractor agrees to defend and indemnify the City as described in section 12 of this Agreement should the City be made a party to any judicial or administrative proceeding to resolve any such dispute or should the City incur any costs in responding to third-party discovery requests.
14. NON-DISCRIMINATION. Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, military or veteran status, gender, gender identity, gender expression, sexual orientation, or any other class protected under state, federal, or local law. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to any class or category protected under state, federal, or local law and shall make reasonable accommodation to qualified individuals with disabilities. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, transfer, recruitment, or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. Contractor agrees to post in conspicuous places available to 12 February 3, 2025 Item 05
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employees and applicants for employment any notices provided by City setting forth the provisions of this non-discrimination clause.
15. NOTICES. All communications to either party by the other party shall be delivered to the persons listed below. Any such written communications by mail shall be conclusively deemed to have been received by the addressee five (5) calendar days after the deposit thereof in the United States Mail, postage prepaid and properly addressed as noted below.
If to City: If to Contractor:
City of Del Mar Aztec Janitorial Service
Attn: City Clerk Attn: Marisela Grismer
1050 Camino del Mar 7980 Lemon Grove Way
Del Mar, CA 92014 Lemon Grove, CA 91945
[email protected] [email protected]
16 ASSIGNABILITY. This Agreement and any portion thereof shall not be assigned or transferred, nor shall any of the Contractor’s duties be delegated or sub-contracted, without the express written consent of the City.
17. RESPONSIBILITY FOR EQUIPMENT. City shall not be responsible nor held liable for any damage to persons or property consequent upon the use, misuse, or failure of any equipment used by Contractor or any of Contractor’s employees or subcontractors, even if such equipment has been furnished, rented, or loaned to Contractor by City. The acceptance or use of any such equipment by Contractor, Contractor’s employees, or subcontractors shall be construed to mean that Contractor accepts full responsibility for and agrees to exonerate, indemnify and hold harmless City from and against any and all claims for any damage whatsoever resulting from the use, misuse, or failure of such equipment.
18. CALIFORNIA LAW; VENUE/MISC. This Agreement shall be construed and interpreted according to the laws of the State of California. Any action brought to enforce or interpret any portion of this Agreement shall be brought in the county of San Diego, California.
Contractor hereby waives any and all rights it might have pursuant to California Code of Civil Procedure section 394.
19. COMPLIANCE WITH LAWS. The Contractor shall comply with all laws, ordinances, regulations, and policies of the federal, state, and local governments applicable to this Agreement, including California Labor Code section 1720, et seq., relating to payment of prevailing wages for public works projects, if applicable. Contractor shall indemnify and defend the Indemnified Parties from and against any liability incurred due to any failure on the part of Contractor to comply with any applicable Laws.
To the extent Contractor is required to comply with prevailing wage requirements, Contractor does hereby acknowledge that they are aware of, have read, and understand the terms and implications of SB 854 and Contractor and any subcontractors ensure that they are familiar with and comply with its requirements. Such requirements include, but are not limited to, the registration requirement with the Department of Industrial Relations, State of California (DIR), pursuant to Labor Code section 1725.5. As of March 1, 2015, in compliance with SB 854, the City requires all affected contractors and Contractors to be registered with the DIR prior to submitting a bid or proposal on any eligible District project. As of April 1, 2015, failure to comply with the requirements of SB 854 by any contractor or Contractor, including registration with the DIR pursuant to Labor Code section 1725.5, shall be a material breach of this Agreement which 13 February 3, 2025 Item 05
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may be terminated by the City in its sole and absolute discretion. Where applicable, this project is subject to compliance monitoring and enforcement by the DIR.
20. CONTRACTOR’S CERTIFICATION OF AWARENESS OF IMMIGRATION REFORM AND CONTROL ACT OF 1986. Contractor certifies that Contractor is aware of the requirements of the Immigration Reform and Control Act of 1986 (8 USC §§ 1101-1525) and has complied and will comply with these requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors, and Contractors that are included in this Agreement.
21. ENTIRE AGREEMENT. This Agreement sets forth the entire understanding of the Parties with respect to the subject matters herein. There are no other understandings, terms or other agreements expressed or implied, oral or written, except as set forth herein.
22. AMENDMENTS. This Agreement may be modified or amended only by a written document executed by both Contractor and City and approved as to form by the City Attorney.
No change, alteration, or modification of the terms or conditions of this Agreement, and no verbal understanding of the Parties, their officers, agents, or employees shall be valid unless agreed to in writing by both Parties.
23. NO WAIVER. No failure of either the City or the Contractor to insist upon the strict performance by the other of any covenant, term or condition of this Agreement, nor any failure to exercise any right or remedy consequent upon a breach of any covenant, term, or condition of this Agreement shall constitute a waiver of any such breach of such covenant, term or condition.
24. SEVERABILITY. The unenforceability, invalidity, or illegality of any provision of this Agreement shall not render any other provision unenforceable, invalid, or illegal.
25. DRAFTING AMBIGUITIES. The Parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations, terms and conditions of this Agreement, and the decision of whether or not to seek advice of counsel with respect to this Agreement is a decision which is the sole responsibility of each Party. This Agreement shall not be construed in favor of or against either Party by reason of the extent to which each Party participated in the drafting of the Agreement.
26. LEGAL FEES. In the event of the bringing of any action or suit by either party hereto against the other party hereunder to enforce or interpret any of the provisions, covenants or conditions of this Agreement, or arising out of any tortious conduct by either party incident to this Agreement, the prevailing party in such action or suit shall be entitled to recover all costs and expenses of suit, including reasonable attorneys' fees. In any action or suit brought to enforce this Agreement, the damages available shall be limited to specific performance or other such equitable relief that the court may order.
27. CONFLICTS BETWEEN TERMS. If an apparent conflict or inconsistency exists between the main body of this Agreement and the Exhibits, the main body of this Agreement shall control. If a conflict exists between an applicable federal, state, or local law, rule, regulation, order, or code and this Agreement, the law, rule, regulation, order, or code shall control. Varying degrees of stringency among the main body of this Agreement, the Exhibits, and laws, rules, regulations, orders, or codes are not deemed conflicts, and the most stringent requirement shall control. Each Party shall notify the other immediately upon the identification of any apparent conflict or inconsistency concerning this Agreement.
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28. EXHIBITS INCORPORATED. All Exhibits referenced in this Agreement are incorporated into the Agreement by this reference.
29. SIGNING AUTHORITY. The representative for each Party signing on behalf of a corporation, partnership, joint venture, or governmental entity hereby declares that authority has been obtained to sign on behalf of the corporation, partnership, joint venture, or entity and agrees to hold the other Party or Parties hereto harmless if it is later determined that such authority does not exist.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the day and year first hereinabove written.
CITY OF DEL MAR,
a municipal corporation
By: ____________________________
Ashley Jones, City Manager
AZTEC JANITORIAL SERVICES
By: _______________________________
Genaro Garcia, Chief Financial Officer
ATTEST:
________________________________
Sarah Krietor, Administrative Services
Manager/City Clerk
APPROVED AS TO FORM:
_______________________________
Leslie E. Devaney, City Attorney
E-SIGNED by Genaro Garcia
on 2024-06-03 16:03:26 PDT
E-SIGNED by Leslie Devaney
on 2024-06-04 11:25:27 PDT
E-SIGNED by Ashley Jones
on 2024-06-03 22:43:44 PDT
E-SIGNED by Sarah Krietor
on 2024-06-04 11:26:31 PDT
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EXHIBIT “A”
SCOPE OF SERVICES
I. GENERAL PROVISIONS
Contractor shall furnish all supplies, equipment, consumables, and labor for accomplishment of the work in a professional and workmanlike manner. The level of services as outlined herein shall be consistently maintained. During the Contract period, the Contract Administrator will conduct monthly inspections of the facilities under this Contract. The inspections are based on standards for commercial facilities within the maintenance industry.
1. Contractor shall provide janitorial services for the City of Del Mar (City) facilities listed in this document. Cleaning shall be provided to all of these areas, unless otherwise stated.
2. Contractor shall perform a baseline cleaning of the facilities listed herein. Contractor will leave each facility visually clean, having wiped, spot removed, dusted mopped, vacuumed, emptied, or otherwise cleaned each area per Scope of Work and industry standards. These standards are an outline of general expectations of cleanliness but are not meant to replace or supersede the latest industry standards or materials and equipment manufacturers’ recommendations.
3. All supplies, consumables, and equipment for the execution of this work shall be furnished by the Contractor. Contractor’s equipment shall be of the size and type suitable for accomplishing the various phases of work described herein, and shall operate from existing sources of electrical power. Equipment considered to be improper or inadequate for the purpose shall be removed from the job and replaced with equipment satisfactory to the City.
4. Supplies and consumables used for this work shall be of industrial grade, premium quality and most suitable type or grade for the work to be accomplished. Contractor may be required to provide a material list of all supplies for the City’s review and approval. City reserves the right at any time to request a change in materials, should there be a health, safety, and/or quality issue(s) involved, without increase in cost.
5. Contractor shall adhere to all scheduling as defined in this document unless a schedule change has been approved by the City in writing.
6. Contractor and its subcontractors shall maintain a current City of Del Mar business license at all times.
7. Contractor shall perform all work in compliance with the City of Del Mar Municipal Code regarding storm water runoff system discharge regulations and requirements, and San Diego Regional Water Quality Control Board (SDRWQCB) National Pollutant Discharge Elimination System (NPDES) Order No. 2013-0001. Compliance includes the implementation of practical methods, known as Best Management Practices (BMPs), which shall be used to protect the environment and to comply with regulatory requirements.
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8. Do not allow contaminated water or cleaning solution to enter the storm water system.
Power washing and other wash water runoff shall be recovered and disposed of properly. Violations of any of these requirements may lead to a civil penalty of up to $5,000 per day, per violation.
9. The City reserves the right to increase or decrease the services. Services and fees for new facilities shall be added at the average rate per square foot for a comparable facility at the time of the addition. Such changes will be according to the terms and conditions of the Request for Proposal and will be done through an amendment to the master agreement for regular service.
II. FACILITIES SERVICED
Location Time of Service Frequency of Service and instructions
1. Civic Center – 1050
Camino Del Mar, City Hall:
8,855 sq. ft., Town Hall:
3,104 sq. ft., Breezeway: 934
sq. ft. and Parking Structure,
Plaza & Outlook areas
Monday-Thursday after
5:30 pm
Daily: Offices, conference rooms,
kitchen, restrooms, elevators, parking
structure, plaza & outlook, and common
areas including tile, carpet, furniture,
counter tops, desks, and appliances.
2. Public Works Yard – 2240
Jimmy Durante Blvd., Main
Building: 800 sq. ft., Trailer
1: 133 sq. ft., Trailer 2: 279
sq. ft.
Tuesday and Friday
after 4:30 pm
Twice a Week: Offices, annex trailers,
kitchen, restrooms, and common areas
including tile, carpet, furniture, counter
tops, desks, and appliances
3. 17th Street Public
Restrooms – 1700 Coast
Blvd., Six bathrooms 190 sq.
ft. total
Seasonal (Memorial
Day -Labor Day
Weekend) 1:00pm –
9:00pm adjusted based
on day light savings
Daily: Public restrooms portered and
cleaned daily. Sink, sink basins, counter
tops, showers, shower drains, ramps,
and concrete surrounding restrooms.
4. Powerhouse Public
Restrooms – 1658 Coast
Blvd., Two bathrooms 450 sq.
ft. total
Seasonal (Memorial
Day-Labor Day
Weekend) 1:00pm –
9:00pm adjusted based
on day light savings
Daily: Public restrooms portered and
cleaned daily. Sink, sink basins, counter
tops, shower, shower drains, ramps, and
concrete surrounding restrooms.
5. 25th Street Public
Restrooms - Two bathrooms
160 sq. ft. total
Seasonal (Memorial
Day-Labor Day
Weekend) 1:00pm –
9:00pm adjusted based
on day light savings
Daily: Public restrooms portered and
cleaned daily. Sink, sink basins, counter
tops, shower, shower drains, ramps, and
concrete surrounding restrooms.
Additional Event Cleanup
Services
Based on City’s event
calendar (i.e.,
concerts), from
approximately 1:00
p.m. to 10:00 p.m.
Daily: Public restrooms portered and
cleaned daily. Sink, sink basins, counter
tops, shower, shower drains, ramps, and
concrete surrounding restrooms. Trash
patrol, litter cleanup, spill response.
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1. AS NEEDED LABOR SERVICE
1.1. Contractor shall provide additional janitorial services, as-needed, and as defined by change order(s) or proposal(s) for events and/or special considerations for the City. City’s Representative will communicate staffing needs and timing no less than 48 hours in advance except for weekends, holidays, or other special events.
1.2. As-needed labor shall comply with all standards stated within this document.
1.3. As-needed labor may receive direction from Public Works and/or Community Services City Staff.
1.4. Services for events may include, but not limited to, additional cleaning and trash removal.
1.5. Facilities/Open Space locations may vary.
2. COMPANY EMPLOYEES AND VEHICLES
2.1. Contractor’s employees shall be skilled, professional employees trained in janitorial services. Janitorial staff shall wear clean, neat uniforms and identification while working on City premises.
2.2. Contractor’s vehicles will have the Contractor’s name or logo permanently affixed to the front doors of both passenger and driver’s side. Vehicles will be clean, orderly and in good working order.
2.3. Contractor and his employees will be courteous and show respect to the public, City employees and other Contractor employees at all times. Use a friendly voice tone and offer assistance when necessary.
2.4. Each of the Contractor’s Employee’s shall be equipped with the necessary equipment to carry out the proper performance of the cleaning as specified. This equipment shall be available and in possession of the Contractor’s Employee’s at all times while carrying out their duties.
2.5. Contractor and its employees must successfully complete a criminal record check after providing the County Sheriff’s Department two current passport size photos, a completed request for Live Scan service, a completed Janitorial Application, and a copy of the applicant’s driver license or Government issued identification.
2.6. The applicant will need to contact the County Sheriff’s Department at (858) 974-2110 to schedule an appointment to be Live Scanned and have their photo taken for the Cityissued contractor identification card.
2.7. Once the applicant has been live scanned (fingerprinted), the County Sheriffs Department must wait for a response from the Department of Justice.
2.8. No applicants will be approved and no access to any City facility will be granted to the contractor until all information has been received from the Department of Justice and applicant has been cleared by the City and a City of Del Mar contractor identification card 18 February 3, 2025 Item 05
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issued.
2.9. Contractor will pay the fee for Live Scan for each employee working within City facilities.
2.10. Contractor’s employees will be placed on subsequent notification. This requirement allows the department to receive notification of any arrest subsequent to the Live Scan check.
2.11. Contractor and its employees must successfully pass a drug screening before conducting work under this contract.
2.12. Contractor is responsible for their employees’ actions on City facilities.
2.13. Contractor will ensure that his employees do not have pets or other “unapproved” personnel including children in City facilities, or in the Contractor’s vehicles outside the facilities.
2.14. Contractor will ensure that his employees do not store personal property of any kind in or on City facilities.
2.15. Contractor will not issue, loan or otherwise allow the procurement of keys, access information, or codes to anyone, including employees, without first receiving authorization from the City Representative and without first successfully completing the background check and Live Scan and submitting said documentation to the City Representative.
2.16. Contracted employees will refrain from making or receiving personal calls during working hours. Non-emergency calls should be made during breaks or lunch. At no time, other than emergency should the telephone be used by this Contractor.
3. BUILDING SECURITY
3.1. Secure and lock all doors before leaving unoccupied buildings and Public Restrooms.
3.2. Turn off all lights not left on for security reasons as instructed.
3.3. Activate intrusion alarm security systems after completing work and before leaving buildings.
3.4. Deactivate security systems before entering buildings at the beginning of work as instructed and where applicable.
3.5. Report in writing to the City Representative security system false alarms activated by Contractor’s employees or otherwise occurring during janitorial service when no City employee is present.
3.6. Provide to the City Representative a list of the keys and codes issued to Contractor’s employees. This list will include employee names, addresses and telephone numbers that these codes and keys are issued to. Contractor will notify the City Representative of all and any keys or other pass code information lost by Contractor’s employees.
3.7. Contractor shall not duplicate keys without first receiving written permission from the City 19 February 3, 2025 Item 05
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Representative.
3.8. Contractor is responsible for retrieving all City security information from those employees no longer employed by the Contractor, for whatever reason.
3.9. Contractor will notify the City Representative of any Contractor employee whose employment has been terminated that has or does have City security information or appurtenances.
3.10. Contractor is responsible for the cost of any re-keying, entry code, or security code changes needed due to non-retrieval of this security information, keys or appurtenances from its past employees.
Report to the City Representative in writing any walls, rooms, carpeting, equipment and furniture damaged by vandalism, graffiti, stains, water leaks, etc.
4. CITY HOLIDAY SCHEDULE
4.1. The City of Del Mar Public offices will be closed in observation of the following holidays.
Cleaning service shall continue as per schedule regardless of holidays with the exception of City Hall and Public Works. City Hall and Public Works will not be cleaned on these holidays:
New Year’s Day
Martin Luther King’s Birthday
President’s Day
Memorial Day
Independence Day
Labor Day
Veterans’ Day
Thanksgiving
Day after Thanksgiving
Christmas Eve
Christmas Day
New Year’s Eve
5. TASKS
5.1. The Contractor will furnish consumables to fill all dispensers in the restrooms and other facilities as needed. This includes, but is not limited to: toilet paper, paper towels, sanitary toilet seat covers, anti-bacterial soap, sanitary napkins, plastic liners, trash liners, etc.
5.2. The Contractor will supply all equipment in good working order including, but not limited to: janitorial vehicles, cleaning supplies, vacuum cleaners, floor scrubbers, chemicals, and all other cleaning appurtenances.
5.3. Contractor will separate all recyclable and green waste material from other refuse and deposit in appropriate receptacles at each facility serviced.
5.4. The following is a guideline for cleaning these areas as defined in this document. The 20 February 3, 2025 Item 05
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intent of this document and the City of Del Mar is to find these areas maintained clean, sanitized, and fresh smelling.
5.5. All furniture including benches, seats, tables, and trash receptacles are to be serviced by this Contractor. At no time should this be damaged by this Contractors forces. If damaged, the replacement and cost will be borne by this Contractor.
5.6. Concrete benches, stairs, and elevators will require some cleaning considerations.
5.7. Restroom, Daily Cleaning:
• Clean, wash, and disinfect all sinks, urinals, and commode fixtures. This includes tops, under-side and sides of all fixtures.
• Remove all webs, dust, litter, debris, and markings, wipe clean, wash, and disinfect all dispensers, grab bar, mirrors, frames, walls, ceiling surfaces, diaper changing stations, privacy partitions, tile, doors, and hardware, etc. • Clean, wash and disinfect shower curtains, doors, mats, enclosures, and stalls (including grout).
• Clean, wash, and disinfect shower mats requires washing mats with an approved cleaner that will eliminate fungus and mold.
• Refill all consumables, such as soap, paper towels, toilet paper, sanitary seat liners, and feminine napkin dispensers so that all dispensers are completely full at the conclusion of each service.
• Empty trash, sanitize and install new liner.
• Floors shall be kept clean, spotless, shiny, and sanitized. • Restrooms shall be kept free from unpleasant smells upon completion of service. • Check for stoppages in toilets and urinals by flushing and observing; use a plunger if necessary. Notify Public Works at (858) 755-3294 for continued stoppages or any leaks.
5.8. Kitchen, Daily Cleaning:
• Restock consumables so that all dispensers are completely full at the conclusion of each service.
• Empty trash, recycling, organic bins, and containers, sanitize and install new liner. • Remove all webs, dust, litter, debris and markings, wipe clean, wash and disinfect all surfaces including doors, sills, partitions, walls (as needed), tables, ceilings, cabinets, chairs, vents, small kitchen appliances, and large kitchen appliances, countertops, and shelves.
• Spot clean all floors, fabric covered furniture, and windows. • Floors shall be kept clean, spotless, shiny, and sanitized. • Clean, sanitize and remove all soap build-up, visible filth and discoloring from all tile surfaces, sinks, plumbing fixtures, and other areas. • These areas must meet or exceed County of San Diego health standards each and every cleaning. Failure to meet these standards are a reason for termination of Contract.
5.9. Kitchen and Lunch Room Area Weekly (Thursday Night) Cleaning:
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• Thursday nights, wipe clean and sanitize all interior surfaces.
5.10. Reception Areas, Copy Room, Office Areas, Hallways, Courtyards, Plazas, Patios, Breezeway and Parking Structure Daily Cleaning:
• Restock consumables so that all dispensers are completely full at the conclusion of each service.
• Empty trash and containers, sanitize and install new liner. • Remove all webs, dust, litter and debris and markings, wipe clean and sanitize all surfaces including doors, sills, partitions, walls, light fixtures, cabinets, chairs, sound equipment, vents, tables, shelves (where they are clear of materials), desks (where they are clear of papers), etc.
• Open web trusses, beams, support and baffle siding, tops of doors, windows and other surface that can/will collect dust.
• Wipe all natural wood surfaces with furniture polish. • Clean all travertine and other natural stone with a City-approved cleaner. • Floors shall be kept clean, spotless, shiny, and sanitized. • Sweep or vacuum all interior areas as needed.
• Sweep all exterior areas as needed.
• Clean, sanitize and remove all soap build-up, visible filth and discoloring from all tile surfaces and grouts, sinks, counters, epoxy flooring, and other areas. • Spot clean all carpeted floors, fabric covered furniture, windows and other areas periodically cleaned with a City-approved fabric or carpet spot cleaner. • Vacuum all carpeted floors and other fabric covered furniture. • Clean and vacuum all entrance mats at the entrances both interior and exterior of the buildings.
5.11. Window Cleaning:
• All interior and exterior windows up to and including 12 feet from the floor will be spot cleaned for smudges, hand prints or other markings daily or as required. All excess spray/solution must be removed from any surrounding trim or surfaces and glass/window surfaces shall have a uniformly bright appearance. Return any items moved to accomplish this task their original positions.
5.12. Janitorial Cleaning Log:
• The facility shall have the Contractor-provided janitorial cleaning log. This log will be filled out by the Contractor’s employee before existing the facility site, each visit. • The janitorial cleaning log has an area for notes and comments. All alarm soundings, graffiti, pest control needs, security issues, leaks or non-working plumbing devices, damage to property, and areas left not serviced will be noted in this comments area.
• All notations in the area for notes and comments will be relayed within 24 hours to the City Representative by e-mail.
5.13. Trash/Recycling:
• All trash/recycling receptacles will be serviced/emptied, cleaned with liners 22 February 3, 2025 Item 05
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changed by the Contractor when that area is serviced/cleaned as per schedule. • The Contractor will deliver the trash, recycling, organic bins, and containers receptacles to the garage dumpster organic area and place materials in appropriate disposal can.
6. SITE INSPECTION AND REPORTING
6.1. Report immediately by telephone during regular working hours (858) 755-3294. For afterhours issues call Del Mar Public Works dispatch at (858) 756-1126 issues that may require immediate action. For emergencies call 911.
• Incidents of injury, damage or potential hazards to the public, end users or employees.
• Running water or leaks
• Sewer backups
6.2. Report immediately by e-mail ([email protected] and [email protected]) issues such as, but not limited to:
• Public nuisances
• Work performance delays
• Repairs needed
• Dripping water leaks
• Non-emergency electrical issues such as, but not limited to, outlets without power or entire buildings without power.
• Lost and found articles
• Deliver any lost and found article to Del Mar Public Works, 2240 Jimmy Durante Boulevard, Del Mar, CA 92014.
7. PAYMENTS
7.1. Invoices will be addressed to: City of Del Mar, Public Works 2240 Jimmy Durante Boulevard Del Mar, California 92014 Attn: Operations Manager and emailed to [email protected].
7.2. Contractor will submit a monthly payment invoice listing each of the FACILITIES SERVICED and each individual invoice amount.
7.3. If the City determines that there are deficiencies in the performance of this contract, the Contractor will be notified both verbally and in writing each time service requirements are found to be unsatisfactory and corrective action is necessary. Should the Contractor fail to correct any deficiencies within two hours, the City may exercise the following measures:
• Deduct from the Contractor’s payment the amount necessary to correct the deficiency.
• Withhold the entire or partial payment.
• Utilize City forces or alternate source to correct the deficiency and deduct from the Contractor’s payment the total cost, including City overhead. 23 February 3, 2025 Item 05
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8. EQUIPMENT
8.1. Contractor will supply and maintain all tools and equipment in good and proper working condition, such as clean mops, brooms, bucket and wringers, carts, dust pans, dusters, vacuum cleaners, janitorial vehicles, cleaning supplies and chemicals, and secure an adequate inventory of all janitorial supplies, consumables, and products.
8.2. All equipment provided by the Contractor will be of commercial grade.
8.3. Contractor will supply each facility two mops, a “clean mop” for kitchens, lunch rooms, prep areas, etc. and another mop for all other areas and incidental cleanups.
8.4. “Clean mops” will be marked so that employees of the City as well as Contractor’s employees can easily recognize these tools as clean.
8.5. Contractor will replace all mops as needed to ensure adequate, sanitary cleaning.
8.6. All equipment stored on site at a City facility will be stored neat and orderly. All Janitors closets will be stowed in such a way that City employees can easily find what is needed, during their work shift, without moving other items with the exception of the janitorial cart.
All mops, brooms, dust pans, and other cleaning appurtenances will be either hung or shelved neatly at all times they are stored.
8.7. Any shelf units needed for the storage of the supplies as described in this document at any facility listed is subject to the approval process in Scope of Services Section 9 SUBMITTALS. Once approved, the shelf unit will be installed by the City. Upon installation, the shelf unit is then the property of the City of Del Mar.
8.8. Any rack systems needed for storage of other janitorial equipment as described in this document at any facility listed is subject to the approval process in 11) SUBMITTALS and
10.7. 8.9. Any chemical dispensing unit/equipment and appurtenances that the Contractor finds critical to his operation is subject to the approval process in Scope of Services Section 9 SUBMITTALS. Purchase, assembly and installation will be done, contracted or coordinated by the Contractor at his expense and under the direction of City staff. This is not a reimbursable item.
9. SUBMITTALS
9.1. All materials and consumable products are subject to prior approval by the City’s Representative. Contractor will provide submittals for the following items to the City’s Representative for approval. All materials and consumable products used at these project sites will be subject to prior approval through this submittal application process. No materials will be accepted for use on this project without prior approval, in writing. All submittals will have the appropriate MSDS attached for City review.
9.2. Any Contractor-requested replacements for the items listed in “PRE-APPROVED PRODUCTS” are subject to this approval process.
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10. QUALITY ASSURANCE
10.1. Contractor is responsible for training, supervising, equipping, checking work quality, ensuring adherence to schedule, and all other management issues involved with his employees. Quality control is the responsibility of the Contractor.
10.2. Contractor will regularly check janitorial closets and storage areas for orderly storage.
10.3. Contractor will notify the City Representative in writing of any conditions or events as defined in this document.
11. FACILITY CONTACTS
Location Contact Telephone and e-mail
Public Works, 2240 Jimmy Durante
Blvd, Del Mar, CA 92014
Michael D’Aquila,
Operations Manager
(858) 704-3684;
[email protected]
*All written communication from the Contractor to contacts of the individual facilities will be carbon copied to the City Representative. All written communication from the Contacts of the individual facilities to the Contractor will be carbon copied to the City Representative. 25 February 3, 2025 Item 05
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EXHIBIT “B”
FEE SCHEDULE
26 February 3, 2025 Item 05
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:
TO: Honorable Mayor and City Councilmembers
FROM: Ashley Jones, City Manager
Clem Brown, Assistant City Manager
Sarah Krietor, Administrative Service Manager/City Clerk DATE: February 3, 2025
SUBJECT: 2025 City Council Goals & Priorities Setting Workshop Preparations REQUESTED ACTION/RECOMMENDATION:
Staff recommends that the City Council review the proposed 2025 City Council Goals & Priorities Setting Workshop (Workshop) outline (Attachment A) and provide direction to staff as needed.
BACKGROUND:
In the beginning of each calendar year, the City Council typically holds a workshop to establish the City’s goals and priorities for the next fiscal year (beginning July 1). This process guides the development of the City’s overall work plan and helps identify budgetary needs for the coming fiscal year. The Council Workshop is an important first step in the budget process in that the Council goals and priorities established during the Workshop will be used by staff to finalize a comprehensive citywide work plan that will be the basis for the City’s Fiscal Year (FY) 2025-2026 and 2026-2027 Operating and Capital Budget.
DISCUSSION/ANALYSIS:
In preparation for the 2025 Workshop, staff prepared the proposed outline (Attachment A). The proposed Workshop structure is consistent with the format the City Council has successfully used since 2020 to established the City’s annual work plan. Consistent with past practice, the purpose of this agenda item is to seek input from the full Council in preparation for the Workshop.
Given that the workshop format has been standardized and supported by the Council since 2020, it is suggested that this practice continue into future years and staff would only bring a report to Council for direction should a change in the Workshop format/process be recommended by staff or members of the Council. 1 February 3, 2025 Item 06
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February 3, 2025
Proposed Workshop Format & Timing
Consistent with the Council’s practice since 2020, the proposed Workshop format (Attachment A) includes an overview and status update on the current FY 2024-2025 work plan items, including those that that are expected to continue into FY 2025-2026 and 2026-2027; discussion of new potential work plan items from staff or Councilidentified items; and the setting of goals and priorities for the upcoming two-year budget cycle.
The work plan will be organized using City’s “Tier system”, which includesTier 1 (essential services), Tier 2 (important items that support City operations/values) and Tier 3 (nonessential items that could be deferred or eliminated) items.
Based on Council availability, the Council Workshop is planned for March 5, 2025, at 2:30 p.m., and consistent with past years is expected to take approximately four hours.
Public Outreach
Recognizing the importance of public input regarding the City’s goals and priorities, information about the Workshop will be posted on the City’s website, featured in the City’s weekly electronic newsletter, and will be the subject of City e-blasts communications. As with other City public meetings, members of the public can submit written comments in advance of the meeting or comment during the meeting both in-person and via Red Dot communications. The meeting will also be televised, live streamed on the internet, and recorded/archived on the City’s website.
FISCAL IMPACT:
There is no immediate fiscal impact or action to be taken by the City Council related to this agenda item.
ENVIRONMENTAL IMPACT:
The proposed City Council action does not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because it will not have a potential to result in a direct or indirect physical change in the environment and is, therefore, not subject to CEQA. No further action under CEQA is required.
ATTACHMENTS:
Attachment A - 2025 Goal Setting Workshop Proposed Agenda Outline 2 February 3, 2025 Item 06
ATTACHMENT A
Proposed 2025 City Council Goals and Priorities Workshop Agenda A. High Level City Budget Status Report
o Staff to provide a high-level overview of the City’s current financials B. Status of Current Fiscal Year 2024-2025 Work Plan
o Staff to provide an overview of items that have been or will be completed this fiscal year
C. Discussion of the FY2025-2026 and FY2026-2027 Goals and Priorities o Review of multi-year work plan items continuing from the current Fiscal Year
o Review and discussion of staff proposed new work plan items o Review and discussion of Council proposed work plan items 3 February 3, 2025 Item 06
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:
TO: Honorable Mayor and City Councilmembers
FROM: Nestor Machado, Management Analyst
Karen Brindley, Planning and Community Development Director Via Ashley Jones, City Manager
DATE: February 3, 2025
SUBJECT: Encroachment Permits 24-106 and 24-107 to Retain Existing Fencing within the Public Right-of-Way at 401 and 405 9th Street
Applicant: Ken Huettner
REQUESTED ACTION/RECOMMENDATION:
Staff recommends the City Council adopt the attached Resolutions (Attachment A and B) conditionally approving Long-term Major Encroachment Permits (EP) 24-106 and 24-107 to retain private encroachments at 401 and 405 9th Street.
BACKGROUND:
An alley exists on City Right-of-Way (ROW) between 8th and 9th Streets, from Hoska Drive to Camino del Mar (Hoska Alley). The alley’s western portion, approximately 450 feet, is only accessible on foot due to the existing terrain. The eastern portion of the alley, which is approximately 300 feet, provides vehicular accessibility to approximately ten properties. The alley’s eastern portion also contains a water main with services/meters to approximately 14 properties. Over the years, Hoska Alley residents have requested that the City take steps to improve the alley to address dust and storm related drainage issues.
In 2023, the City completed an engineering assessment and design of storm drain improvements on Hoska Alley. On October 2, 2023, the City Council approved the final design of the Hoska Alley Street and Storm Drain Improvement Project (Project), and a construction contract was awarded for the Project on October 7, 2024. Project construction is underway and expected to be complete February 2025.
The Project scope includes the installation of approximately 300 linear feet of asphalt paving with a three-foot-wide concrete “ribbon gutter” located in the center of the alley for surface drainage control. The new paving/gutter would connect with a short section of existing improved surface located at the eastern end of the alley. When construction of 1 February 3, 2025 Item 07
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EP24-106 and EP24-107 (401 and 405 9th Street)
February 3, 2025
the project is complete, native hydroseed will be planted that will grow into the existing native vegetation in the alley.
In preparation for project construction, on August 5, 2024, the City sent notification to all property owners abutting Hoska Alley that any private encroachments into the alley that would interfere with the Project would have to be removed by October 14, 2024. The notice also explained that any unauthorized encroachments a property owner would like to retain or reinstall following completion of the Project would require an approved encroachment permit from the City.
On September 3, 2024, the owner of 401 and 405 9th Street, Ken Huettner (Applicant), filed an EP application to retain existing unpermitted encroachments consisting of six (6) foot high wooden fences along the south sides of the Applicant’s properties at 401 and 405 9th Street that abut Hoska Alley and extend into City ROW. The wooden fence on the south side of 405 9th Street encroaches approximately three (3) feet into Hoska Alley at the property’s southeast corner and this same fence at 401 9th Street encroaches approximately four (4) feet into Hoska Alley at the southwest corner of that property.
The Applicant is requesting the City Council approve a Long-term Major EP for the wooden fences for both properties so that they can remain in those portions of the public alley. The fences are located at the top of steep slopes that drop downward towards the north and into the 401 and 405 9th Street properties. If the Applicant were required to relocate the fences to the southern property lines, the portions of slope that are within the alley would become exposed to the public and cause potential safety issues within the public right-of-way.
Upon review, staff determined that there are no records of an approved EP for the wooden fence on either property; the current location of the two fences do not interfere with the Project’s storm drain improvements and will not impede future access; and the height of the fences conform to Del Mar Municipal Code (DMMC) fence height standards.
The City survey for the Hoska Alley Project depicting the property lines for both 401 and 405 9th Street and the location of the existing wooden fence on the south side of the properties abutting Hoska Alley is included as Attachment C. Photos of the fence at 401 9th Street are included as Attachment D and photos of the fence at 405 9th Street are included as Attachment E.
DISCUSSION/ANALYSIS:
Under DMMC §23.28.020, a Long-term Major EP is defined as any improvement designed to or having a permanent appearance and intended for use for a period of 365 days or more and includes, but is not limited to, structures or portions thereof, balconies, cornices and other architectural projections, awnings, below grade vaults, earth-retaining structures extending 12-inches or more in height above the adjacent grade, planter boxes, 2 February 3, 2025 Item 07
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February 3, 2025
ramps, fences or walls, and curbs extending 12-inches or more in height above the adjacent grade.
Required Findings
Pursuant to DMMC §23.28.070, there are six (6) required findings to approve a Longterm Major EP that generally relate to public safety, intended use of the right-of-way, community character, aesthetics, and conversion of public land for private use. An EP shall only be approved if the City Council can make all six findings:
Finding 1: That the issuance of the EP will not endanger public health, safety or welfare, or the surrounding property.
Here, retaining the wooden fence on the south side of the properties would not endanger the public’s health, safety, or welfare, nor would it endanger the surrounding property.
The fence has been in this location for many years with no record of incident or any reported adverse impact. Moreover, the fence has and will continue to act as a safety barrier between the relatively level portion of the undeveloped alley and the steeply sloping northern portion of the alley in the public ROW that descends into the back yards of both properties.
Finding 2: That the issuance of the EP will not unreasonably interfere with the intended use of a City Right-of-Way or Easement.
As demonstrated by the record, the existing encroachments that would be authorized under the EP will not unreasonably interfere with the use of the alley and will not block the accessible route of travel because there are no plans to develop/permanently improve the western 450 feet of the public ROW. This portion of Hoska Alley is only traversable on foot and has no feasible public exit to the west. Once the Hoska Alley improvements are complete, native hydroseed will be planted that will grow into the existing native vegetation in the alley. If the City identifies a future need for this public area, the EP is conditioned to be revocable, and the property owner is obligated to remove the private improvements/encroachment.
Finding 3: That the issuance of the EP will not have an adverse impact on the welfare of the community or on the community’s appearance or aesthetics.
Here, the existing encroachments have been in the City’s ROW for many years without any known complaints from the public and are therefore consistent with the appearance of other properties in the area.
Finding 4: That the issuance of the EP will not cause an unnecessary change in the character of the community.
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February 3, 2025
The existing encroachments are consistent with other fences located in the community and as a result will not cause any unnecessary changes to the character of the community. Many properties have fences abutting Hoska Alley as a form of privacy and acting as a safety barrier due to the alley being at a higher grade than many of the backyards of the properties abutting the alley.
Finding 5: That the issuance of the EP will not be to the detriment of the interests of the general public.
These encroachments do not interfere with existing public use of the surrounding rightof-way. Public Works staff overseeing the Project confirmed that the wooden fence on both properties did not need to be completely removed to install the new storm drain and that the existing encroachments to be authorized with this EP will not interfere with City operations/infrastructure.
Finding 6: The proposed Encroachment will not convert significant area of public property to private use.
The existing encroachments extend approximately three to four feet into the public alley.
Both fences are located at the top of steep slopes at the southern portion of the properties.
The dedicated width of Hoska Alley is 20 feet and at 401 and 405 9th Street, the traversable width of the Alley on foot is approximately 16 – 17 feet with the wooden fence in its current location. The current location of the fences provides a benefit to public safety and moving them to the respective private property boundaries would expose a steep slope and would remove the safety barrier that currently exists.
Planning and Community Development Department staff has consulted with the Public Works Department, Community Services Department, and City Manager’s Office and determined that retaining the wooden fences on the south side of the properties would not endanger public’s health, safety, or welfare, nor would it endanger the surrounding properties. The fences have been in this location for many years with no record of incident or reported adverse impact and will continue to act as a safety barrier between the Applicant’s backyards and the ROW due to the steep slope in the back of the properties.
As shown in the photographs in Attachments D and E, the Applicant’s backyards are at a significantly lower grade than the slope in the ROW to the south. If the fences were to be removed or pushed back onto the property lines, it may make the area less safe (e.g., fall hazard) than if the encroachments remain in place given the steepness of the location and the drop off onto the private properties below. If the fences were to be pushed back within the property lines, approximately three to four feet of filling and compacting would be needed to make that area even grade with the rest of Hoska Alley including the potential need for a retaining wall to compensate for the significant slope difference. 4 February 3, 2025 Item 07
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February 3, 2025
As a condition of approval of the requested EPs, a covenant will be recorded on the properties that would require that all private improvements in the ROW be maintained by the property owner in accordance with the EP and the owner will be required to provide a full indemnity to the City should there ever be a claim of liability by a third party. As is typical with EPs, the permit conditions and covenants will ensure that should the City need this public space in the future, the wood fences on both properties will be removed by the owner at their sole expense.
Based on the above, all required findings can be found to be satisfied. Therefore, staff recommends City Council adopt the Resolutions approving Long-term Major EP24-106 (Attachment A) and EP24-107 (Attachment B).
FISCAL IMPACT:
There is no fiscal impact or action to be taken by the Council related to this agenda item, as this is a private development proposal. All fees associated with entitlement processing are paid for by the Applicant.
ENVIRONMENTAL IMPACT:
Pursuant to the California Environmental Quality Act (CEQA), the proposed project has been analyzed and determined to be Categorically Exempt pursuant to CEQA Guidelines Section 15301(Class 1 – Existing Facilities), in that the Project proposes retention of existing wooden fences. Further, it has been determined that none of the six exceptions to the use of a Categorical Exemption are applicable because the project will not generate any significant environmental impacts. (See: Guidelines Section 15300.2).
NEXUS TO CITY COUNCIL GOALS AND PRIORITIES:
This is an operational item and is not included in the City Council’s list of Goals & Priorities.
ATTACHMENTS:
Attachment A - Resolution Approving EP24-106
Attachment B - Resolution Approving EP24-107
Attachment C - Vicinity Map
Attachment D - Site Plan (City Survey of Hoska Alley)
Attachment E - 401 9th St. Photographs
Attachment F - 405 9th St. Photographs
5 February 3, 2025 Item 07
RESOLUTION NO. 2025-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL
MAR, CALIFORNIA, APPROVING ENCROACHMENT PERMIT 24-
106 TO RETAIN AN EXISTING WOODEN FENCE THAT EXTENDS
INTO THE PUBLIC RIGHT-OF-WAY ON THE SOUTH SIDE OF
THE PROPERTY AT 401 9TH STREET (APN: 300-222-08-00) IN
DEL MAR, CALIFORNIA
WHEREAS, the City of Del Mar (City) is the owner of the public right-of-way; and WHEREAS, Ken Huettner (Applicant) has filed an application for an Encroachment Permit (EP24-106) seeking approval to allow the existing wooden fence on the south side of the property to remain within the public right-of-way (Project); and WHEREAS, the property does not have an approved Encroachment Permit for the existing fence in the right-of-way on the south side of the property; and WHEREAS, Del Mar Municipal Code (DMMC) Chapter 23.28 requires an Encroachment Permit (EP) for any private improvements within the public right-of-way; specifically, any improvements that extend at least 12 inches above the level of the sidewalk, roadway, or adjacent grade require City Council approval; and WHEREAS, Section 23.28.070 of the DMMC provides that an Encroachment Permit may be approved or conditionally approved only if the Council makes all of the findings set forth in Section 23.28.070(C) as noted in the below; and WHEREAS, in accordance with requirements of the California Environmental Quality Act (CEQA), this project is listed among the classes of projects determined to have less than significant adverse effect on the environment and, therefore, is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 Class 1 – Existing Facilities in that the project proposes retaining an existing encroachment by an accessory structure (fence); and WHEREAS, on February 3, 2025, the City Council of the City of Del Mar held a duly noticed public hearing to review the referenced entitlements, and at which time all persons desiring to be heard were heard; and
WHEREAS, oral and written evidence was submitted and considered to include without limitation:
a. Plans developed by the City;
b. Written information submitted with the application;
c. Agenda Report, dated February 3, 2025, incorporated by reference as though fully set forth herein; and
e. Additional information submitted and testimony provided during the hearing.
Attachment A 6 February 3, 2025 Item 07
Resolution 2025-XX
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Del Mar that Encroachment Permit EP24-106 is hereby approved based on the following findings in DMMC Chapter 23.28.070(C):
Findings:
1. Retaining the wooden fence on the south side of the property would not endanger the public’s health, safety, or welfare, nor would it endanger the surrounding property. The fence has been in this location for many years with no record of incident or reported adverse impact. The fence has and will continue to act as a safety barrier between the Applicant’s backyard and the public right-of-way due to the steep slope in the back of the property.
2. The existing encroachment that would be authorized under this EP will not unreasonably interfere with the use of the alley and will not block the accessible route of travel because there are no plans to develop the western 450 feet of the public right-of-way. This portion of Hoska Alley is only traversable on foot and has no feasible public exit to the west. Once the Hoska Alley Street and Storm Drain Improvement Project (Project) is completed, native hydroseed will be planted that will grow out into native vegetation in the alley. If the City identifies a future need for this public area, the EP is conditioned to be revocable, and the property owner is obligated to remove the private improvement/encroachment.
3. The existing encroachment has been in the City’s right-of-way for many years without any known complaints from the public and is consistent with the appearance of other properties in the area.
4. The existing encroachment is consistent with other fences located in the community and as a result will not cause any unnecessary changes to the character of the community. Many properties have fences abutting Hoska Alley as a form of privacy and acting as a safety barrier due to the alley being at a higher grade than many of the backyards of the properties abutting the alley.
5. The private improvement has not and will not interfere with any present or future public use. The encroachment does not interfere with existing public use of the surrounding right-of-way. Public Works staff overseeing the CIP confirmed that the wooden fence on this property did not need to be removed in its entirety to complete the storm drain project and that the existing encroachments to be authorized with this EP will not interfere with City operations/infrastructure.
6. The existing encroachment extends approximately four (4) feet into the public alley.
The fence is located at the top of a very steep slope at the southern portion of the property. The dedicated width of Hoska Alley is 20 feet and at 401 9th Street, the traversable width of the Alley on foot is approximately 16 feet with the wooden fence in its current location. The fencing in its current location provides a benefit to public Attachment A 7 February 3, 2025 Item 07
Resolution 2025-XX
safety and moving it to the respective private property boundary would expose a steep slope and would remove the safety barrier that currently exists.
NOW, THEREFORE, BE IT FURTHER RESOLVED by the Council that approval of EP24-106 shall be subject to the following conditions:
General Encroachment Conditions:
GEP-2 [EP – Indemnification]
By accepting this permit and implementing the development authorized herein, the applicant agrees to indemnify, defend and save the City of Del Mar, its authorized agents, officers, representatives and employees harmless from and against any and all penalties, liabilities, annoyances, or loss resulting from claims or court action and arising out of any accident, loss or damage to persons or property happening or occurring as a proximate result of any work undertaken under the permit granted pursuant to the application or by reason of the permittee's installation, operation, maintenance or removal of the encroachment.
GEP-4 [EP - Compliance with Conditions]
The applicant hereby agrees to do all work and otherwise comply with the terms and conditions of this permit, and all applicable rules and regulations of the City of Del Mar and/or other public agency.
GEP-5 [EP - Revocation of permit due to noncompliance with conditions] This permit may be revoked by the City if noncompliance is noted to the applicant and satisfactory action is not taken by the applicant or his/her agents to achieve compliance within twenty-four (24) hours of notice.
GEP-11[EP - Compliance with City Codes and Permit Conditions] Any person violating any provisions of or failing to comply with any of the requirements of this Permit or of DMMC Chapter 23.28 shall be subject to the enforcement provisions set forth in DMMC Chapters 1.08 and 30.98.
GEP-12[EP - Change of Permit Conditions at Direction of the City] The City retains the right to change conditions of this Permit granted and order the relocation or adjustment of lines, manholes, fixtures, and apparatus hereby allowed to be installed, whenever, in the opinion of the City, this becomes necessary; and desirable. In the event that such an order is made, all changes required pursuant thereto shall be made at the sole expense of the Permittee.
GEP-15[EP - No Transfer in Property Interest]
Attachment A 8 February 3, 2025 Item 07
Resolution 2025-XX
The granting of an encroachment permit pursuant to this chapter shall not constitute the transfer or relinquishment of any ownership or interest held by the City over the public rightof-way, nor shall such permit confer any vested or proprietary rights upon the holder of the permit beyond the right to utilize the encroachment area in the manner authorized by the permit and subject to all of the conditions set forth herein.
Document Conditions:
DC-1 [Recordation of a Covenant]
Within sixty (60) days of final EP approval, the applicant shall record a covenant (at the applicant’s expense) against the deed for the property benefited by the approved Encroachment Permit setting forth the terms and conditions of the Permit, including the requirement for applicant’s maintenance/responsibility and removal of the encroachment upon demand by the City. The covenant shall run with the land and shall be binding on future owners and assigns. The form and content of the covenant shall be to the satisfaction of the City Attorney and City Manager.
Special Conditions:
SP-2 [Encroachment Permit Revocation]
At the City’s discretion, the Encroachment Permit may be revoked at any time and the property owner will be required to remove the private improvement from the City right-ofway.
Public Works Conditions:
PW-3 [USA Markout]
At least 72 hours prior to the excavation of any area within a right-of-way, the applicant shall contact Underground Services Alert (USA) at (800) 422-4133 for the purpose of identifying the location of buried utilities so as to avoid disturbance thereof. All proposed dig or trench areas shall be pre-marked with white paint prior to contacting for USA mark out. No work shall commence until USA mark out has occurred.
The permittee is advised that the locations of utility lines may vary from those shown on approved project plans and that coordination with the appropriate utility companies is, therefore, imperative. Any damage or repair thereof to utility lines caused as a result of project implementation shall be the permittee’s responsibility. The applicant shall be responsible for removing or blocking out all pavement markings installed for the project immediately upon completion of the work authorized in the Encroachment Permit. Should a utility conflict be present, then the Contractor shall contact the Engineer of Work immediately, in order to provide sufficient time for a redesign and approval of construction change.
Attachment A 9 February 3, 2025 Item 07
Resolution 2025-XX
PW-6 [Location of Walls & Fences]
No walls, wall footings or fences shall be constructed within the Public Right of Way.
PW-17 [Public Works Inspection]
Permittee shall schedule inspections with the Public Works, through MBI at (760) 603- 6264, at least 24 hours prior to need as follows:
a. Sidewalk, Driveway, Curb and Gutter and other Concrete Work Pre-pour and Final b. Street Excavation T-Cut and Final
c. Sewer Lateral Capping during Demolition and New Lateral Connection to Main d. Water- Cross Connection Inspection prior to final.
e. All Other Encroachment Activity Final
PASSED, APPROVED AND ADOPTED by the City Council of the City of Del Mar, State of California, at a Regular Meeting held on the 3rd day of February 2025. ____________________________
Terry Gaasterland, Mayor
City of Del Mar
APPROVED AS TO FORM:
Leslie E. Devaney, City Attorney
City of Del Mar
Attachment A 10 February 3, 2025 Item 07
Resolution 2025-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. 2025-XX, adopted by the City Council of the City of Del Mar, California, at a Regular Meeting held the 3rd day of February 2025, by the following vote:
AYES:
NOES:
RECUSE:
ABSENT:
ABSTAIN:
Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
Attachment A 11 February 3, 2025 Item 07
RESOLUTION NO. 2025-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL
MAR, CALIFORNIA, APPROVING ENCROACHMENT PERMIT 24-
107 TO RETAIN AN EXISTING WOODEN FENCE THAT EXTENDS
INTO THE PUBLIC RIGHT-OF-WAY ON THE SOUTH SIDE OF
THE PROPERTY AT 405 9TH STREET (APN: 300-222-09-00) IN
DEL MAR, CALIFORNIA
WHEREAS, the City of Del Mar (City) is the owner of the public right-of-way; and WHEREAS, Ken Huettner (Applicant) has filed an application for an Encroachment Permit (EP24-107) seeking approval to allow the existing wooden fence on the south side of the property to remain within the public right-of-way (Project); and WHEREAS, the property does not have an approved Encroachment Permit for the existing fence in the right-of-way on the south side of the property; and WHEREAS, Del Mar Municipal Code (DMMC) Chapter 23.28 requires an Encroachment Permit (EP) for any private improvements within the public right-of-way; specifically, any improvements that extend at least 12 inches above the level of the sidewalk, roadway, or adjacent grade require City Council approval; and WHEREAS, Section 23.28.070 of the DMMC provides that an Encroachment Permit may be approved or conditionally approved only if the Council makes all of the findings set forth in Section 23.28.070(C) as noted in the below; and WHEREAS, in accordance with requirements of the California Environmental Quality Act (CEQA), this project is listed among the classes of projects determined to have less than significant adverse effect on the environment and, therefore, is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 Class 1 – Existing Facilities in that the project proposes retaining an existing encroachment by an accessory structure (fence); and WHEREAS, on February 3, 2025, the City Council of the City of Del Mar held a duly noticed public hearing to review the referenced entitlements, and at which time all persons desiring to be heard were heard; and
WHEREAS, oral and written evidence was submitted and considered to include without limitation:
a. Plans developed by the City;
b. Written information submitted with the application;
c. Agenda Report, dated February 3, 2025, incorporated by reference as though fully set forth herein; and
e. Additional information submitted and testimony provided during the hearing.
Attachment B 12 February 3, 2025 Item 07
Resolution 2025-XX
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Del Mar that Encroachment Permit EP24-106 is hereby approved based on the following findings in DMMC Chapter 23.28.070(C):
Findings:
1. Retaining the wooden fence on the south side of the property would not endanger the public’s health, safety, or welfare, nor would it endanger the surrounding property. The fence has been in this location for many years with no record of incident or reported adverse impact. The fence has and will continue to act as a safety barrier between the Applicant’s backyard and the public right-of-way due to the steep slope in the back of the property.
2. The existing encroachment that would be authorized under the EP will not unreasonably interfere with the use of the alley and will not block the accessible route of travel because there are no plans to develop the western 450 feet of the public right-of-way. This portion of Hoska Alley is only traversable on foot and has no feasible public exit to the west. Once the Hoska Alley Street and Storm Drain Improvement Project (Project) is completed, native hydroseed will be planted that will grow out into native vegetation in the alley. If the City identifies a future need for this public area, the EP is conditioned to be revocable, and the property owner is obligated to remove the private improvements/encroachment.
3. The existing encroachment has been in the City’s right-of-way for many years without any known complaints from the public and is consistent with the appearance of other properties in the area.
4. The existing encroachment is consistent with other fences located in the community and as a result will not cause any unnecessary changes to the character of the community. Many properties have fences abutting Hoska Alley as a form of privacy and acting as a safety barrier due to the alley being at a higher grade than many of the backyards of the properties abutting the alley.
5. The private improvement has not and will not interfere with any present or future public use. The encroachment does not interfere with existing public use of the surrounding right-of-way. Public Works staff overseeing the Hoska Alley Project confirmed that the existing wooden fence encroachments to be authorized with this EP will not interfere with City operations/infrastructure.
6. The existing encroachment extends approximately three (3) feet into the public alley.
The fence is located at the top of a very steep slope at the southern portion of the property. The dedicated width of Hoska Alley is 20 feet and at 405 9th Street, the traversable width of the alley is approximately 17 feet with the wooden fence in its current location. The fencing in its current location provides a benefit to public safety and moving it to the respective private property boundaries would expose a steep slope and would remove the safety barrier that currently exists.
Attachment B 13 February 3, 2025 Item 07
Resolution 2025-XX
NOW, THEREFORE, BE IT FURTHER RESOLVED by the Council that approval of EP24-106 shall be subject to the following conditions:
General Encroachment Conditions:
GEP-2 [EP – Indemnification]
By accepting this permit and implementing the development authorized herein, the applicant agrees to indemnify, defend and save the City of Del Mar, its authorized agents, officers, representatives and employees harmless from and against any and all penalties, liabilities, annoyances, or loss resulting from claims or court action and arising out of any accident, loss or damage to persons or property happening or occurring as a proximate result of any work undertaken under the permit granted pursuant to the application or by reason of the permittee's installation, operation, maintenance or removal of the encroachment.
GEP-4 [EP - Compliance with Conditions]
The applicant hereby agrees to do all work and otherwise comply with the terms and conditions of this permit, and all applicable rules and regulations of the City of Del Mar and/or other public agency.
GEP-5 [EP - Revocation of permit due to noncompliance with conditions] This permit may be revoked by the City if noncompliance is noted to the applicant and satisfactory action is not taken by the applicant or his/her agents to achieve compliance within twenty-four (24) hours of notice.
GEP-11[EP - Compliance with City Codes and Permit Conditions] Any person violating any provisions of or failing to comply with any of the requirements of this Permit or of DMMC Chapter 23.28 shall be subject to the enforcement provisions set forth in DMMC Chapters 1.08 and 30.98.
GEP-12[EP - Change of Permit Conditions at Direction of the City] The City retains the right to change conditions of this Permit granted and order the relocation or adjustment of lines, manholes, fixtures, and apparatus hereby allowed to be installed, whenever, in the opinion of the City, this becomes necessary; and desirable. In the event that such an order is made, all changes required pursuant thereto shall be made at the sole expense of the Permittee.
GEP-15[EP - No Transfer in Property Interest]
The granting of an encroachment permit pursuant to this chapter shall not constitute the transfer or relinquishment of any ownership or interest held by the City over the public rightAttachment B 14 February 3, 2025 Item 07 Resolution 2025-XX
of-way, nor shall such permit confer any vested or proprietary rights upon the holder of the permit beyond the right to utilize the encroachment area in the manner authorized by the permit and subject to all of the conditions set forth herein.
Document Conditions:
DC-1 [Recordation of a Covenant]
Within sixty (60) days of final EP approval, the applicant shall record a covenant (at the applicant’s expense) against the deed for the property benefited by the approved Encroachment Permit setting forth the terms and conditions of the Permit, including the requirement for applicant’s maintenance/responsibility and removal of the encroachment upon demand by the City. The covenant shall run with the land and shall be binding on future owners and assigns. The form and content of the covenant shall be to the satisfaction of the City Attorney and City Manager.
Special Conditions:
SP-2 [Encroachment Permit Revocation]
At the City’s discretion, the Encroachment Permit may be revoked at any time and the property owner will be required to remove the private improvement from the City right-ofway.
Public Works Conditions:
PW-3 [USA Markout]
At least 72 hours prior to the excavation of any area within a right-of-way, the applicant shall contact Underground Services Alert (USA) at (800) 422-4133 for the purpose of identifying the location of buried utilities so as to avoid disturbance thereof. All proposed dig or trench areas shall be pre-marked with white paint prior to contacting for USA mark out. No work shall commence until USA mark out has occurred.
The permittee is advised that the locations of utility lines may vary from those shown on approved project plans and that coordination with the appropriate utility companies is, therefore, imperative. Any damage or repair thereof to utility lines caused as a result of project implementation shall be the permittee’s responsibility. The applicant shall be responsible for removing or blocking out all pavement markings installed for the project immediately upon completion of the work authorized in the Encroachment Permit. Should a utility conflict be present, then the Contractor shall contact the Engineer of Work immediately, in order to provide sufficient time for a redesign and approval of construction change.
Attachment B 15 February 3, 2025 Item 07
Resolution 2025-XX
PW-6 [Location of Walls & Fences]
No walls, wall footings or fences shall be constructed within the Public Right of Way.
PW-17 [Public Works Inspection]
Permittee shall schedule inspections with the Public Works, through MBI at (760) 603- 6264, at least 24 hours prior to need as follows:
a. Sidewalk, Driveway, Curb and Gutter and other Concrete Work Pre-pour and Final b. Street Excavation T-Cut and Final
c. Sewer Lateral Capping during Demolition and New Lateral Connection to Main d. Water- Cross Connection Inspection prior to final.
e. All Other Encroachment Activity Final
PASSED, APPROVED AND ADOPTED by the City Council of the City of Del Mar, State of California, at a Regular Meeting held on the 3rd day of February 2025. ____________________________
Terry Gaasterland, Mayor
City of Del Mar
APPROVED AS TO FORM:
________________________
Leslie E. Devaney, City Attorney
City of Del Mar
Attachment B 16 February 3, 2025 Item 07
Resolution 2025-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. 2025-XX, adopted by the City Council of the City of Del Mar, California, at a Regular Meeting held the 3rd day of February 2025, by the following vote:
AYES:
NOES:
RECUSE:
ABSENT:
ABSTAIN:
Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
Attachment B 17 February 3, 2025 Item 07
401 & 405 9th St. Vicinity Map
Attachment C 18 February 3, 2025 Item 07
Attachment D 19 February 3, 2025 Item 07
Attachment E 20 February 3, 2025 Item 07
Attachment E 21 February 3, 2025 Item 07
Attachment F 22 February 3, 2025 Item 07
Attachment F 23 February 3, 2025 Item 07
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:
TO: Honorable Mayor and City Councilmembers
FROM: Ashley Jones, City Manager
Marco Camacho, Finance Manager/Treasurer
Sarah Krietor, Administrative Services Manager
Martin Boyd, Principal Engineer
DATE: February 3, 2025
SUBJECT: Consideration of Undergrounding Program Financing Options REQUESTED ACTION/RECOMMENDATION:
Staff recommends the City Council: 1) Receive a presentation from City staff and NHA Advisors, LLC (NHA) on debt offerings based on NHA’s Memorandum dated January 9, 2025 (Attachment A); 2) Provide direction on whether the City should proceed with financing for Utility Undergrounding Districts (UUDs) X1A and 1B or delay the projects and proceed on a pay-as-you-go basis; 3) If financing is supported, provide direction on which debt option, public versus private borrowing, to pursue for financing UUDs X1A and 1B; and 4) Approve and authorize the City Manager to execute Task Order 3 with NHA for $67,500 to serve as the City’s municipal advisor for purposes of the borrowing (Attachment B).
EXECUTIVE SUMMARY:
On November 18, 2024, the City Council authorized a task order with NHA Advisors (NHA) to further evaluate financing options for the City’s Undergrounding Program (UP). On January 9, 2025, NHA provided the City with a memorandum summarizing their evaluation (Attachment A). NHA’s work focused on financing for UUDs X1A and 1B, and compared public and private borrowing options ranging from 15 to 30-year terms.
On January 21, 2025, a joint special meeting of the Finance Committee and Undergrounding Program Advisory Committee (UPAC) was held to discuss the financing options. The committees received a presentation from staff and NHA and were asked to provide policy level advisory recommendations regarding the pursuit of debt financing, public versus private borrowing, and a preferred debt term.
The joint committees voted 11-1 (with one member opposed) in support of the City proceeding with financing for UUD X1A and 1B. A majority of committee members preferred public versus private financing, but there was no clear consensus on the term of the debt (15-30 years).
Most committee members expressed concerns about fire safety risks and sunk costs if financing for UUDs X1A and 1B is delayed.
If the City Council directs staff and NHA to proceed with the process to secure financing for undergrounding, staff will continue to bring critical decision points and final loan details to 1 February 3, 2025 Item 08
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Consideration of Undergrounding Program Financing Options February 3, 2025
UPAC and the Finance Committee for review and recommendation prior to City Council consideration. To ensure funding availability when needed, staff would coordinate the bidding process and construction contract award for UUD X1A concurrently with Council’s final approval of a borrowing.
BACKGROUND:
Measure Q, a 1% local transaction and use tax (sales tax) measure initiated by the City of Del Mar (City), was approved by voters in November 2016, and went into effect in April 2017.
Measure Q is a general tax measure, the funds from which can be used for general purposes as identified by the City Council.
The ballot language for Measure Q stated funding would be used for “general city services and infrastructure projects, such as improvement of streets and sidewalks, utility undergrounding, public landscapes, improvement of community parks, trails and recreation facilities; police, crime prevention, fire protection and other public safety services.”
In 2017 and 2018, the City Council prioritized use of Measure Q funds for Downtown Streetscape, undergrounding of utility poles citywide, and completion of the Shores Park Master Plan and future implementation. More detailed information about the history of Measure Q and accomplishments to date can be found here:
https://www.delmar.ca.us/DocumentCenter/View/9623/Item-12--Measure-Q-Overview With the completion of the Tewa Court/10th Street pilot project in February 2023, and Utility Undergrounding District (UUD) 1A (Stratford Court South) construction underway, the Council directed staff to identify potential funding strategies for undergrounding future districts, starting with UUDs X1A (Crest Canyon) and 1B (Stratford Court North). UUDs X1A and 1B are estimated to cost a combined $23.3 million, in today’s dollars, of which approximately $17 million is unfunded.
Staff and the City’s financial consultant, NHA, previously completed a comprehensive financial analysis and developed a dynamic model to assist the City Council with selecting a funding strategy that best addresses the community’s goals and project challenges (Attachment C).
The current base UP cost for all districts is estimated to be $105 million in today’s dollars, which may increase to over $200 million when applying inflation and financing costs over the life of the project. The timeline for completing the Undergrounding Program is estimated to be 20 to 35 years depending on which funding strategy is ultimately pursued by the City.
In late 2024, three long-term funding strategies including Scenario 1 - “pay-as-you-go” model (no financing); Scenario 2 – “Hybrid” model (initial financing and pay-as-you-go thereafter); and Scenario 3 - “finance-as-you-go” model (periodic and strategic financing when needed) were presented to the Finance Committee, Undergrounding Program Advisory Committee, and City Council.
2 February 3, 2025 Item 08
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Consideration of Undergrounding Program Financing Options February 3, 2025
Each funding scenario assumes all UP expenditures, including debt service repayment, will be funded exclusively by Measure Q revenue. Whether or to what degree the City obtains financing for the UP will ultimately affect the cost and timing for completion of each district and the overall UP as summarized in the table below.
Table A. Summary of Funding Strategies Presented on November 18, 2024 Scenario Base Cost Inflation Financing
Costs
Total
Costs
Completion
Year
1 (Pay Go) $105.6M $99.5M $0M $205.1M
X1A (2029)
1B (2031)
2 (2037)
3 (2047)
4 (2054)
5 (2059)
2 (Hybrid) $105.6M $97.7M $6.6M $209.8M
X1A (2026)
1B (2027)
2 (2035)
3 (2048)
4 (2055)
5 (2059)
3 (Finance
Go) $105.6M $37.9M $80.1M $223.7M
X1A (2026)
1B (2027)
2 (2031)
3 (2036)
4 (2042)
5 (2044)
UPAC Funding Scenario Recommendation
On September 24, 2024, UPAC received a presentation from City staff and NHA, and recommended the City proceed with the Scenario 3 – “finance-as you-go” model to accelerate completion of Citywide undergrounding 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, continued efforts to assess cost efficiencies, and work with SDG&E to better understand and control costs.
Finance Committee Funding Scenario Recommendation
On October 22, 2024, the Finance Committee received a similar presentation from City staff and NHA, and recommended the City Council authorize staff to further explore financing options, including 15-, 20-, 25- and 30-year loan options, and analyze the impact of separating the financing of UUDs X1A and 1B.
City Council Direction
On November 18, 2024, the City Council received a presentation provided by City staff and NHA along with recommendations from the Finance Committee and UPAC. The report for 3 February 3, 2025 Item 08
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Consideration of Undergrounding Program Financing Options February 3, 2025
this agenda item is provided here as Attachment C and details the utility undergrounding process, cost estimate history, explanation of SDG&E project costs, financial model assumptions and scenarios. At the meeting, Council provided direction to City staff to work with NHA to further evaluate possible financing options and structure and approved a related task order to do so. Additionally, Council consensus was for staff to return to the Finance Committee and UPAC with detailed information regarding financing options to be provided by NHA for the committees to make a recommendation to the City Council regarding financing for UUDs X1A and 1B.
Latest UUD X1A/1B Cost and Schedule Information
The current base project cost estimates for UUDs X1A and 1B were developed using the latest cost information available to the City, including the UUD 1A City construction bids and SDG&E’s cost estimate. These figures are used to estimate future projects based on a per linear foot rate for overhead or trench (if available). SDG&E is currently in the bid process for UUD 1A and expects to provide the City with an initial estimate invoice by the end of March based on the results of their bid process.
The City recently received SDG&E’s pre-bid cost estimate for UUD X1A (Attachment D), totaling $4.88 million. On a cautiously optimistic note, this amount is lower than the City’s current estimate of $5.54 million. However, staff recommends maintaining the current cost estimate until SDG&E’s bid process for UUD 1A is complete and they have provided the City with a related cost invoice by end of March 2025, as this will offer greater certainty about the accuracy of the cost estimates.
The design for UUD X1A is mostly finalized (90%+), and staff is awaiting one final SDG&E easement and a couple of permit-to-enter forms, which are part of the critical path for the project. Once the SDG&E easement is obtained, SDG&E’s bidding process will take 4 to 5 months, after which the City will receive the preliminary cost estimate. Based on this timeline, staff currently estimates City construction contract award by July 2025. However, this is still contingent on receiving the easements and permit-to-enter forms from property owners.
Concurrently, staff is also working on obtaining easements for AT&T and Spectrum/Charter.
To date, the City has invested approximately $1.1 million for City services and AT&T fees related to UUD X1A. This amount does not include SDG&E’s engineering fee or staff time.
UUD 1B is nearly at the 60% design stage with SDG&E. Next steps include formal design review; environmental review; extensive homeowner outreach; distribution of preliminary lateral and easement exhibits for homeowners to reference along with permit-to-enter forms for signature; and preparation of the City civil and telecommunications design. Completion of upcoming preconstruction and bidding activities will cumulatively take approximately 13-18 months with construction anticipated as early as 2026 contingent upon the City receiving the necessary easements and permit-to-enter forms from property owners.
The City has invested approximately $180,000 to date in preconstruction activities for UUD 1B. This amount does not include SDG&E’s engineering fee, AT&T’s fee, or staff time. A large 4 February 3, 2025 Item 08
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Consideration of Undergrounding Program Financing Options February 3, 2025
majority of the preconstruction consulting costs are anticipated to occur during the upcoming activities described above.
Impact of Not Financing for UUDs X1A and 1B (Pay-Go)
If the City were to delay construction of UUDs X1A and/or 1B until funds are available (payas-you-go), some work completed to date would need to be redone or refreshed, much of which would come at a cost to the City, such as update the SDG&E and civil designs, surveys, permits, bid documents, coordinating with utility companies, and communications with homeowners.
SDG&E’s design remains active for one year following its completion. Revisiting civil design and surveys after a long pause is standard practice for capital projects. This ensures the design is still valid based on any changes to design standards and modifications to existing conditions. UUD X1A is currently at 90%+ design, while UUD 1B is at 60% design, meaning each would likely incur costs based on their level of design and the length of the pause. Based on CPUC Rule 20B, the district formation itself does not have an expiration date for these projects.
Table B summarizes the costs and timing specific to UUDs X1A and 1B under each of the funding scenarios. As indicated, the pay-as-you-go scenario has the lowest total cost, and would save an initial estimated $2.6 million in total costs for XD1A and 1B in comparison to financing to pay for these projects. There would also be a cumulative total savings of $4.7 million resulting from pursuing a pay-go funding strategy versus the hybrid funding strategy over the life of the program.
Not pursuing an initial financing would delay completion of UUD X1A by 3 years to 2029, UUD 1B by 4 years to 2031, and UUD 2 by 2 years to 2037, and would set the City on course for a 35-year project completion schedule (Scenario 1). There will be a cost associated with pausing the designs for UUDs X1A and 1B, which is unknown at this time but is roughly anticipated to range between $200,000-$700,000 for any redesign and other activities described above and would decrease project savings resulting from not financing.
Table B. Costs/Timing for UUDs X1A & UUD 1B
Scenario Base Cost* Inflation Financing
Costs
Total
Costs
Completion
Year
1 (Pay Go) $23.3M $4.4M $0M $27.7M
X1A (2029)
1B (2031)
2 (Hybrid) $23.3M $0.4M $6.6M $30.3M
X1A (2026)
1B (2027)
3 (Finance
Go) $23.3M $0.4M $14.8M $38.5M
X1A (2026)
1B (2027)
*Base cost total for Scenarios 2 and 3 includes $17M to be financed and $6.3M Measure Q available project funds, whereas Scenario 1 is all Measure Q reserves. 5 February 3, 2025 Item 08
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Impact of Financing Only X1A
Staff analyzed the impact of financing only X1A (not including 1B) and determined that doing so does not provide any cost or timing advantages as further described below.
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, the overall cost of the project is projected to increase by $1.2 million due to inflation during the resulting two-year delayed project period, which would eliminate any debt interest savings and increase the overall cost of the project to the City by approximately $100,000. Additionally, staff roughly estimates that the cost to refresh, or redesign the City and SDG&E engineering plans and other activities for the project as may be needed would range from $100,000-$300,000 contingent upon how long the project is paused.
From a project timing perspective, not financing UUD 1B would delay construction completion of the project by two years (from 2027 to 2029) and would push out construction completion of UUD 2 by a year (from 2035 to 2036).
Fire Risk Prioritization
The 2019 Council approved Project Delivery Plan for Undergrounding takes fire risk, among other factors, into consideration for prioritization of undergrounding districts. As such, some Councilmembers have asked staff to clarify how the City’s fire risk compares to the broader region.
The California Public Utilities Commission (CPUC) classifies high fire threat districts (HFTD) into three tiers, with Tier 1 being the lowest risk and Tier 3 the highest. Del Mar is classified as a Tier 1 (lowest risk area). SDG&E and other electrical utilities in the State primarily focus on managing risk in Tier 3 locations. While undergrounding in Del Mar is not a primary fire safety focus for SDG&E, mitigating wildfire risk is still a key concern for the City, with Crest Canyon posing the greatest wildfire threat to the Del Mar community.
The City of Del Mar also has an ISO 2 rating, which is a Public Protection Classification (PPC) given to a community by the Insurance Services Office (ISO) indicating that the community has a very good ability to respond to fire.
A letter provided by the prior Fire Chief Mike Stein in 2019, and a new 2025 letter from current Fire Chief Josh Gordon providing important information and context related to fire safety and powerlines are included as Attachment E for reference. In summary, while there is a fire safety benefit to removing powerlines in Crest Canyon and throughout the City, there are other fire safety risks that will continue to exist following removal of the powerlines that need to be considered and routinely addressed. The Fire Department is well prepared to protect the City and residents should a fire occur in Crest Canyon or any other location within the City regardless of the existence of powerlines.
DISCUSSION/ANALYSIS:
Based on Council direction, NHA prepared the attached Memorandum (Attachment A) which 6 February 3, 2025 Item 08
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includes a financing overview, security for debt obligation, method of sale for issuing debt, required financing professionals, current market conditions, structuring considerations, and detailed baseline financial analyses.
The financial analysis presented in NHA’s Memorandum considers feedback received from UPAC, Finance Committee, and City Council and explores public and private borrowing options with terms ranging from 15 to 30 years, including financing statistics and estimated sources and uses.
To help inform and facilitate the City Council’s discussion and direction to staff, the following sections provide additional context regarding the City’s overall fiscal health, ability to weather future potential financial economic downturns, and additional financial safeguards to be considered.
Measure Q Financial Overview
Although Measure Q revenues are legally considered General Fund revenues and are reported as such in the City’s Annual Comprehensive Financial Report (ACFR), they are internally set aside and tracked separately to ensure they are being used for Council designated purposes and in accordance with Council direction. The financial activities of the Measure Q Fund are reviewed and reported annually by the City’s Measure Q Citizen Oversight Committee.
According to the City’s preliminary financial results, as of June 30, 2024, the City collected $20.9 million in Measure Q revenues (including interest earned), and a total of $11.1 million has been spent. An additional $3.4 million is anticipated in revenue in Fiscal Year 2024-2025, with an additional $12.7 million allocated to fund upcoming UP expenditures. Table C below provides more detailed Measure Q revenue and expenditure information.
Table C. Overview of Measure Q Fund Revenues/Expenditures Measure Q Funds Amount (in millions)
Revenues Received to Date (FY24 preliminary) $20.9
Downtown Streetscape Expenditures ($7.0)
Undergrounding Expenditures ($3.9)
Shores Park Master Planning Expenditures ($0.02)
Maintenance of Effort Paving (MOE) Expenditures ($0.2)
Measure Q Balance (June 30, 2024) $9.8
Projected Revenue (FY 2025) $3.4
Projected Expenditures (FY 2025) including UUD 1A (full) & X1A (partial)
($12.7)
Projected Measure Q Balance (June 30, 2025) $0.5
Based on anticipated undergrounding expenditures in the current fiscal year, the projected fund balance at the end of FY 2024-2025 is approximately $500,000. 7 February 3, 2025 Item 08
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City Long-Term Debt History
Historically, the City has maintained low debt and currently has only two long-term loans. One of the loans, with a remaining balance of $2.4 million, 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 2016, to finance construction of the Civic Center, and has a remaining principal balance of $13.5 million as of June 30, 2024.
Annual payments paid from the General Fund totaling approximately $900,000, began on February 1, 2017, and will be paid through August 2045. The interest rate on the loan is
3.24% and an additional fee of 0.3% of the outstanding principal is paid each year.
Weathering Financial Downturns
The City’s overall financial health has remained strong for decades due to stable property values and related revenues, conservative and prudent budgeting, and diligent oversight by City staff, City Council, and the City’s Finance Committee. These factors have enabled the City to successfully weather the 2008 Great Recession and COVID-19 Global Pandemic while maintaining a secure financial position. While many non-essential activities were temporarily put on hold during COVID, the City was able to continue to provide high quality essential services to the public during that time and work continued on many prioritized capital and special projects that were underway. Non-essential activities were reintroduced gradually as the City’s finances started to recover, which worked well for the City.
Despite this long-standing financial stability, when contemplating major financing such as for the UP, the City must look ahead and consider the economic impacts of planned and potential infrastructure projects and related construction in and around Del Mar as well as the impact of unforeseen circumstances such as a fire, earthquake, or pandemic.
The City is self-insured through a joint powers authority, which provides coverage for significant and potentially catastrophic situations such as natural disasters. FEMA funding is also often available to local governments to offset the costs of response and recovery related to disasters such as fire, earthquakes, flooding, landslides, etc.
Financial Stress Test – COVID-19 Case Study
Staff used the COVID pandemic as a case study to evaluate the potential impact of a major financial downturn in Measure Q revenue and assessed impacts on potential borrowing. The COVID pandemic served as a recent "worst-case scenario" for the City, having a more significant impact on revenues than any previous economic recessions, particularly since it affected two of the City’s top three sources of revenue.
Staff’s analysis showed that Measure Q revenue was reduced by approximately 20% during the peak of the pandemic (FY 2020 & FY 2021) with pre-COVID revenue amounts returning in FY 2022. In addition, staff analyzed Transient Occupancy Tax (TOT) revenue which had the largest negative General Fund impact during the pandemic. TOT revenues came in 23% lower in FY 2020, and 40% lower in FY 2021, when compared to pre-COVID revenue results in FY 2019. Table D below shows the pandemic impacts on Measure Q and TOT when compared to FY 2019 (base year) pre-COVID revenue results. 8 February 3, 2025 Item 08
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Table D. Measure Q and TOT Revenue COVID Impacts (in millions) Fiscal Year Measure Q % Difference
Compared to Base
TOT % Difference
Compared to Base
FY 2019 $2.84 base $2.98 base
FY 2020 $2.28 -20% $2.30 -23%
FY 2021 $2.31 -19% $1.79 -40%
FY 2022 $3.39 +19% $3.42 +15%
Based on the financing options that are included in NHA’s Memorandum, the annual debt service payment of a 15-year bank loan (highest debt service payment option) represents 47% of Measure Q revenues received in FY 2024. With anticipated Measure Q revenue for FY 2025 at $3.4 million, the debt service payment would represent 45% of Measure Q revenues received. This percentage of revenue will go down as revenues increase. As reflected in Table D, a reduction in Measure Q revenues during the toughest economic times would still support the highest debt service payment option under consideration.
Since Measure Q is a General Fund revenue, when you put the debt-service payments in the context of overall General Fund revenues, it represents 7%, which poses a reasonably low financial risk to the City.
Looking Ahead to Plan for Future Potential Economic Impacts As part of the City’s routine financial management, staff continues to monitor factors such as construction projects, economic conditions, and special events that could impact the City’s revenue streams positively or negatively. The City also works closely with its sales tax consultant, HdL, to monitor sales tax revenues, trends, and projections which help inform the City’s budget development and management.
The City’s long planned Camino Del Mar Bridge replacement project is scheduled to commence in December 2026, with an anticipated completion in December 2029. The San Diego Associations of Government (SANDAG) plans to begin their San Dieguito Double Track Project, which will involve phased construction from just north of Dahlia Street in Solana Beach to the north end of Camino Del Mar and Jimmy Durante Blvd overpass (2.1 miles in length) within North County Transit District right-of-way. The project is tentatively scheduled to begin in early 2026, with project completion anticipated to be mid-2030.
Preparation and coordination to minimize impacts from construction related to these two significant projects is already underway. Advanced planning for traffic circulation and parking will allow roadways to remain open during construction, and construction activities will be closely coordinated among agencies and contractors to avoid disruption and impacts to the adjacent cities and Fairgrounds to the greatest extent possible.
The City has successfully mitigated construction project impacts on revenue in the past. For example, during the Torrey Pines Bridge Replacement Project construction in 2010-2014, sales tax revenue continued to grow at a rate of 2% to 5% each year. In 2018-2019, 9 February 3, 2025 Item 08
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construction of the Downtown Streetscape Project involved sidewalk, parking, and roadway improvements in the downtown business district on Camino Del Mar, which contributed to a slight decrease of 3% in sales tax revenue. However, during the same reporting period, Measure Q revenue increased by 4%.
Further into the future, as targeted by SANDAG for 2035 or beyond, a train tunnel is envisioned as an option to relocate the existing train tracks from the Del Mar bluffs to an inland location. The work to determine the future alignment is in the early stages with environmental review of potential routes to be completed over the next couple of years, and final route selection by the SANDAG Board to follow. This project faces many challenges, including strong community opposition, engineering complexities, and significant funding (in the billions) that will be needed. Nonetheless, the City is keenly aware of and closely monitoring this project.
Some members of the public have expressed concern about the potential impact of financing the UP on future funding for other capital improvement projects (CIPs), such as the Camino del Mar Bridge Replacement Project. However, the City has a long-standing practice of financing CIP projects through available City funds (i.e., general funds/enterprise funds) or outside grants, by forecasting and planning for such projects well in advance through the City’s 10-year CIP forecast and budget processes. The City has healthy General Fund reserves and in recent years reinstituted a CIP Reserve to ensure funds are available when needed for important City projects. Issuing debt for a Del Mar CIP project has only been done in very rare instances when deemed warranted due to project scope and cost, as was the case for the Del Mar Civic Center.
Term of Loan
The City’s Finance Committee, UPAC, and the City Council initially discussed the pros and cons of shorter and longer-term borrowings last year, and Council directed NHA to evaluate 15, 20, 25, and 30-year term options for both public and private placements as a next step.
As indicated in NHA’s Memorandum, all options have been determined to be financially feasible.
The term of an initial loan for UUDs X1A and 1B will affect the timing and borrowing capacity (if this is something the Council wants to do) for future districts construction. Shorter-term loans (15-20 years) result in higher debt service payments, reducing the revenue available for future districts construction in the near term, thereby extending the program schedule. In contrast, longer-term loans (25-30 years) result in lower payments, increasing the revenue available for future districts construction in the near term, thereby shortening the program schedule. However, a shorter-term loan does increase the revenue available in future years once the loan is paid off.
Deciding on the term of the loan is not a decision the Council has to make at this time. Once the Council provides direction on whether to pursue financing (public or private), the decision on the term of the loan and other related details will be presented to Council for consideration at a future meeting after having been reviewed by the Finance Committee and UPAC. 10 February 3, 2025 Item 08
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Financing Structure – Lease Obligation
The California Constitution expressly provides an exemption from obtaining voter approval to encumber general fund dollars by structuring the financing (public or private) as a “lease obligation.” This is a very common municipal practice, which requires the use of a single asset, or in some cases multiple assets under a Master Lease, equal in value to the financing amount which allows for the annual “lease payments’ to be used as the repayment source.
For example, this financing structure was used for the Del Mar City for the Civic Center project, with the Powerhouse Community Center being used as the leased asset to secure the financing.
Financing Guardrails/Guiding Principles
Should the City Council wish to consider borrowings beyond financing for UUDs X1A and 1B, staff recommends that the Council work with staff and the Finance and Undergrounding committees to develop “guardrails” or a set of guiding principles to help inform future borrowing decisions. For example, consideration could be given to establishing a maximum percentage of Measure Q revenue allocated for annual debt service payments; maximum amount of debt at any time; and maintaining an identified minimum Measure Q fund balance.
Finance Committee and UPAC Joint Feedback/Recommendation At the January 14, 2025, joint meeting, a motion was passed 11-1 (with one member opposed) recommending that the City proceed with financing UUDs X1A and 1B. The joint recommendation was based on the committees’ interest in seeing the next two projects in the program move forward in a timely manner to avoid cost increases, schedule delays, sunk costs, and continued fire hazard risks.
Table E below provides a summary of committee member feedback regarding the type of financing to be pursued, debt term, and collateral structure. A majority (roughly 73%) of participating members indicated support for a public borrowing (bonds). Feedback was mixed on the debt term, with five members preferring a 15-year borrowing term, three members preferring a 20-year term, and three members preferring a 30-year term.
The argument in favor of shorter-term loans is to avoid encumbering the City with long-term debt, which would also free up debt capacity in the long-term once the loan term ends. The argument in favor of longer-term loans is to allow for lower payments in the near term thus increasing the revenue available for construction of future districts and thereby shortening the overall program schedule.
Regarding securing the financing, eight (8) members indicated a preference of pledging assets via a Master Lease (multiple assets) and three (3) members preferred to use a Single Lease (single asset) structure. Both lease options were discussed and a majority of committee members felt that the Master Lease structure would provide more flexibility particularly with respect to future financing for additional projects. 11 February 3, 2025 Item 08
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Table E. Summary of Joint Committee Feedback
Term Length
Public vs
Private Collateral Structure
15 Years
20 Years
30 Years Public Private
Master
Lease
Single
Lease
Total In Favor 5 3 3 8 3 8 3
Next Steps
If the City Council directs staff and NHA to initiate a preferred borrowing process (public bonds or private bank loan financing), staff will work with NHA to take the necessary steps and will return to UPAC and the Finance Committee for recommendations prior to City Council critical decision points (term of loan, master vs. single lease, financing terms/conditions, etc.) and final loan approval.
Staff would also coordinate the bidding process and construction contract award for UUD X1A concurrently with Council approval of a borrowing, ensuring that funding is available in the amount needed at the time the contract is awarded.
If the City Council does not approve borrowing, staff will pause the design process for UUDs X1A and 1B and revisit the designs once the schedule aligns with funding availability for construction.
FISCAL IMPACT:
There is fiscal action to be taken by the City Council related to this agenda item. Approval of the recommended action will result in an approved Task Order #3 with NHA totaling up to $67,500, which will be paid directly from the proceeds of the financing should the City Council approve that to move forward.
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 FY 2024-2025.
ATTACHMENTS:
Attachment A – NHA Memorandum – January 9, 2025
Attachment B – NHA Task Order 3
Attachment C – City Council Agenda Report – November 18, 2024, Attachment D – UUD X1A SDG&E Estimate
Attachment E – 2025 & 2019 Fire Chief Letters
12 February 3, 2025 Item 08
4040 Civic Center Drive, Suite 200
San Rafael, CA 94903
Office: 415.785.2025
www.NHAadvisors.com
MEMORANDUM
Date: January 9, 2025
To: City of Del Mar
From: NHA Advisors, LLC
RE: City of Del Mar Undergrounding Utility Project – Financing Overview and Alternatives Background and Overview
The City of Del Mar (the “City”) has established multiple undergrounding utility districts (the “Projects”), estimating the total costs (in current dollars) of $105.6M. The City has committed to using its 2016 Measure Q tax revenues to fund the Projects.
Project Tewa 1A X1A 1B 2 3 4 5 Total ($)
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)
There have been multiple meetings between City staff and the UPAC, Finance Committee and City Council regarding the funding strategiesfor the Projects. Currently, the City is exploring financing options for Districts X1A and 1B given the limited Measure Q reserve balance.
The analysis herein assumes the City borrows funds to meet the estimated costs totaling $17M. Such funds would be applied to Project X1A with remaining funds (approximately $3M) carried forward to Project 1B.
Without the additional borrowed funds for Project 1B, it is estimated there would be a two-year delay in Project 1B construction until such time as Measure Q revenues are sufficient to cover the costs. 13 February 3, 2025 Item 08
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NHA Advisors Project Engagement
NHA Advisors (“NHA”) has been working with City staff to develop cash flow modeling, financing scenarios and general advice on funding strategies. Pursuant to City Council direction, NHA has been tasked with the development of Project financing options. This scope includes evaluating current market rates and debt structures that are available to the City as well as the financing assumptions required for each structure. This memorandum also includes the financing sources, debt structures and bond sale considerations.
Financing Overview
Issuing bonds or executing a loan provides the City with immediate funds (compared to waiting for Measure Q revenues to accumulate). Any bond or loan would be paid back over time and would use a portion of the Measure Q revenues for debt service. Public agencies use these financing structures for several reasons:
• A project is too expensive to be reasonably constructed with currently available resources (reserves or immediate cash flow revenues)
• Spread project cost over useful life of the asset allowing current and future beneficiaries to pay their share (generational equity)
• Allows for projects phases to be accelerated
• Preserves cash, maintain liquidity and reserves
There are several considerations when borrowing funds for capital projects. The City’s UPAC, Finance Committee and City Council were provided information on Project funding considerations with the financial impact being one of the biggest issues. Committing Measure Q revenues towards bond or loan repayments must take into consideration other potential uses for the same funds. Annual debt service levels must also be sufficiently below the projected future Measure Q revenues to ensure adequate coverage in the event of lower actual revenue receipts. Another key consideration is what debt option provides the best balance of interest cost and flexibility, should the City prefer to prepay its debt.
Debt issued by a public agency is typically tax-exempt if the proceeds are used for a public purpose. Taxexempt interest rates are lower than similar credit taxable debt given the benefits to bondholders for holding tax-exempt bonds. We evaluate various financing options herein, assuming fixed rate, tax-exempt obligations including a range of final maturities. Such analyses can be found under “Current Market Conditions” and “Baseline Financial Analyses”.
Any Project financing structure requires a process including multiple steps. The financing process and the timeline will vary depending on the financing structure, sales method and generally consist of the steps outlined below.
The most critical step is determining the financing objectives (short-term, long-term, Project funding timing), as this establishes the legal and disclosure structure for the financing process. The financing approach (type of sale or loan method) impacts the timeline, financing team participants and legal documentation. • Create financing timeline which maps out financing timeline • Assemble financing team (financing team participants and their roles discussed in following section) • Preparation of legal and disclosure documents
• Obtain credit rating (if applicable)
• City approval of financing and related documents
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• Price bonds or lock in rate(s)
• Close financing and delivery of funds
Security for a Debt Obligation
Given the City’s intention to make debt service payments from Measure Q revenues (general tax), any financing (bond or loan) will be secured by the City’s general fund and entered between the City and a counterparty. The California Debt Limit applies to cities, counties and school districts in the State. Per Article XVI, Section 18 of the California Constitution, the City’s financing will be issued as a “lease obligation” under the “lease exception” in order for the City to encumber its general fund without voter approval. This is the structure used by the City for its Civic Center project. This requires the use of an asset equal in value to the financing amount which allows for the annual “lease payments” to be used as the repayment source.
The counterparty for any lease obligation is typically a special financing authority established by the City for this specific purpose (aka Del Mar Financing Authority) or a third-party entity created for this purpose and operated by California Statewide Community Development Authority (run by the California League of Cities) or other similar organization. There is also a requirement to have a counterparty on the lease agreement.
The following are considerations for a lease financing:
• Unencumbered leased real property asset with a fair rental value equal or greater than the anticipated annual lease payment on the financing.
• Insured or appraised value of real property greater than total financing amount Any asset encumbered for a lease financing is structured as a lease lease-back whereby the City retains fee title and enters into a long-term lease. In the event of a lease payment delinquency by the City, the remedy for any bond investors (through the trustee) is to attempt to re-lease the asset and use the new tenant lease payments to continue making debt service payments. In the event the Trustee is unable to find a new tenant, no revenues are available to make lease payments to the investors/bondholders. No asset liquidation process exists under the financing documents. The City is not at risk of losing possession of the encumbered asset.
Some basic covenants or “agreements” the City makes with investors under a lease financing:
• Make lease payments (debt service) punctually
• The City agrees to budget and appropriate funds for the annual lease payments (debt service). • Maintain rental interruption insurance: A public agency lessee may not have use and occupancy of a leased property if the property suffers a casualty loss. In such cases, the lessee would not be obligated to make a lease payment. Rental interruption insurance is required for this event. • Comply with the terms of the legal documents including the continuing disclosure undertaking.
Annual disclosures (financial information and data) and disclosures of certain events are made to investors.
Unique Lease or Master Lease Concepts
The City has the option to structure the initial Project financing as a one-time financing transaction whereby the leased asset is pledged solely to the individual financing. If the leased asset has excess value (compared to the financing amount), there is no ability to “capture” that surplus for future financings. 15 February 3, 2025 Item 08
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Under a Master Lease Structure, the City establishes a single set of financing documents that can allow for future financings using the same pledged assets in the Master Lease Agreement (if the combined leases do not exceed the Master Lease asset value). If the City intends to finance multiple phases of the Project through bonds, the Master Lease concept should be considered. If the City intends to only issue bonds for the initial Project phase, a traditional lease financing structure is sufficient.
As discussed in the following section, there are different financing methods discussed, primarily public offering, private/direct placement and a government loan with California IBank. A master lease structure can be used for a public offering. For a private/direct placement a master lease structure would most likely require the same lender for each subsequent financing that is included in the master lease. For a loan with California IBank a traditional lease financing would be used (no master lease).
Method of Sale for Issuing Debt
There are multiple financing vehicles available to the City for funding the undergrounding project. The City can issue bonds through the public bond market, issue bonds through a private placement or secure funding through a government-sponsored loan program (if available).
In a public offering, the City would sell debt securities (bonds) through an underwriter to the general public.
Bonds can be sold through a negotiated bond sale or a competitive bond sale. • Negotiated bond sales involve a procedure in which the underwriter, or team of underwriters, are pre-selected by the City, and the City negotiates terms for the sale of the bonds, including the interest rates and the bond discount price.
• Competitive sales procedures generally are preferred when the bond transaction and financing structure are standard and well understood by the marketplace, and where there are enough competitive bidders expected to provide fair competition and pricing in the sale. A strong market usually exists for highly rated bonds which will justify a competitive sale process.
As an alternative to a public bond sale, a private placement sale may be considered if it is demonstrated to result in cost savings or provide other advantages relative to other methods of debt issuance. Private placement sale involves the sale of bonds to pre-selected investors and institutions rather than selling bonds in a public sale.
A public or private bond issue will take approximately 3-4 months to complete. A loan through a governmentsponsored program such as IBank takes approximately 5-6 months to complete. The following provides additional considerations for each type of sale or program:
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Required Financing Professionals
Depending on the selected financing structure, the City will require the professional services of public finance specialists. This includes some or all the following:
Municipal Advisor: The Municipal Advisor to the City serves as the Project manager (for financing) and advises on strategic, structural and policy decisions related to financing. The Municipal Advisor has a fiduciary responsibility to the City, as governed by the U.S. Securities Exchange Commission (“SEC”). The Municipal Advisor’s work includes (but not limited to) assisting with establishing the financing team, developing the financing schedule, assessing alternative financing options and preparation of cashflows, reviewing legal and disclosure documents, guiding of sale process and conducting bidding if bonds are issued as a competitive sale.
Bond & Disclosure Counsel: Bond Counsel is the legal counsel to the City for the issuance of municipal bonds. Bond counsel prepares all bond documentation and provides a tax-exempt opinion to bondholders. Disclosure counsel prepares the Official Statement (offering memorandum to bondholders). Most often, bond and disclosure services are provided by the same firm.
Underwriter: The Underwriter is the financial firm that serves as the intermediary between the City and investors (bondholders). The underwriter purchases the securities from the City and redistributes them to market investors. The underwriter provides expertise in structuring bonds to obtain the lowest interest rates.
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• A negotiated transaction requires an underwriter to be selected early in the process. The underwriter assists with structuring, bond sale timing, marketing and pricing of the bonds. • A competitive transaction selects the underwriter through a public bid process and is awarded to the firm providing the lowest true interest cost. The Municipal Advisor manages the competitive bidding process.
Placement Agent: For a direct/private placement transaction (compared to a publicly offered bond financing), a Placement Agent is engaged to manage the bid process for the selection of the bank or financial institution. The Placement Agent is generally an underwriting firm that has a broker dealer license. The use of a broker dealer allows for certain federal compliance requirements to be met if structuring the financing as a security.
Trustee: The Trustee is a bank that facilitates the collection and distribution of funds for the benefit of the bondholder. The trustee generally holds the bond proceeds until Project costs are invoiced.
Current Market Conditions
The following summarizes estimated current market conditions for a public offering bond transaction and a direct bank loan, each providing $17M in project proceeds. As detailed, a 30-year financing results in debt service of approximately $1M/year, while a 15-year financing results in debt service of about $1.5M/year.
Assumptions used in each analysis are detailed in the section herein titled “Baseline Financial Analyses”. The shorter-term results in less interest paid overtime. The longer term provides the City with more flexibility when considering annual revenues to annual debt service, as the additional remaining Measure Q revenues will accumulate faster to fund future projects or to prepay debt service earlier if desired by the City.
Public
Offering Bank Loan
Public
Offering Bank Loan
Public
Offering Bank Loan
Public
Offering Bank Loan
All-In TIC (includes costs)* 4.19% N/A 4.00% 4.86% 3.72% 4.68% 3.35% 4.52% Average Annual DS Payments $1,005,000 N/A $1,090,000 $1,190,000 $1,220,000 $1,330,000 $1,460,000 $1,585,000 * Estimated based on current market conditions
**We have assumed a private placement for a 30-year transaction is not likely given low to no demand from banks in this range. 30-Year 25-Year 20-Year 15-Year
18 February 3, 2025 Item 08
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PAGE 7
Structuring Considerations
Rating
Publicly offered debt is generally assigned a rating by a credit rating agency. This is an independent review
and assessment of an issuer’s credit and is also based
on the specific bond transaction’s security. The rating is made public for investors to rely on. As long as any bonds are outstanding, the rating agency will
regularly review (annual surveillance) and the rating
could be adjusted based on the new credit profile.
The adjacent chart details the investment grade
rating categories by the three primary rating
agencies.
The City does not currently have an outstanding
rating. The last publicly offered general fund debt
issued by the City was in 1999 (General Obligation Bonds for Wildfire Projection Project). The 1999 Bonds matured in 2014.
Costs of Issuance
Each financing structure has transaction costs associated with it. Depending on the structure and type of sale, all or a portion of the financing professionals described above would be engaged. Most costs are funded through the financing and are contingent on closing of the financing. Total financing costs can range from approximately 1.25% to 2.25% of the amount borrowed, for a transaction this size, and include underwriter’s discount (when underwriter is used as part of a public offering), bond counsel, disclosure counsel, municipal advisory, trustee and rating agency fees, title insurance and other reporting fees. Certain fees, such as the rating agency fee is not contingent upon the completion of the transaction.
Debt Service Reserve Funds
A debt service reserve fund (“DSRF”) is a special fund used to secure debt service payments over the life of the obligation. While the DSRF is funded by bond proceeds at the time of issuance, assuming it is never applied to scheduled debt service payments, it will be credited against the final debt service payments. NHA does not believe, given the City’s strong credit rating profile, that a DSRF will be required. The City has a strong financial position and ample liquidity. In addition, S&P’s stance for a lease transaction, is if the first payment in a fiscal year is no sooner than 90 days (i.e. 10/1), then structuring without a debt service reserve fund does not have an impact on the credit assessment. As the lease payment is an annual appropriation, this time allows for any budget delays.
Redemption/Prepayment Provisions
Redemption refers to paying all or a portion of the remaining principal amount of the bond before maturity.
It is the same as a prepayment of a loan. When issuing bonds, there is generally a 10-year optional redemption feature, which means that the bonds cannot be called for 10-years from issuance. A bank loan may have more flexibility. Some bank lenders may allow for optional pre-payment or within the first few years after the start of the loan.
Aaa AAA AAA
Aa1 AA+ AA+
Aa2 AA AA
Aa3 AA- AAA1 A+ A+
A2 A A
A3 A- ABaa1 BBB+ BBB+
Baa2 BBB BBB
Baa3 BBB- BBBRating Agency's Rating Categories
Investment Grade Rating Tiers
19 February 3, 2025 Item 08
CITY OF DEL MAR UNDERGROUNDING UTILITY PROJECT – FINANCING OVERVIEW AND ALTERNATIVES JANUARY 9, 2025
PAGE 8
Baseline Financial Analyses
Based on the financing structures discussed above, NHA has developed a financial analysis for each for comparison. The analyses assume both a public offering and a bank loan (private/direct placement). The rates for each are estimated based on the market in December 2024. These analyses are intended to allow for a side-by-side comparison only as of December and do not reflect future market movement or changes to each of the potential funding sources (bondholders, financial institutions or State programs). Regardless of whether a public offering or private placement is selected, NHA anticipates a bid process to assure the lowest interest rate to the City.
[Remainder of Page Intentionally Left Blank]
20 February 3, 2025 Item 08
CITY OF DEL MAR UNDERGROUNDING UTILITY PROJECT – FINANCING OVERVIEW AND ALTERNATIVES JANUARY 9, 2025
PAGE 9
Public Offering Assumptions and Results
• Financing terms of 15 years, 20 years, 25 years and 30 years • Project fund deposit of $17,000,000
• Costs of issuance totaling $250,000
• Underwriter’s discount of $5/per $1,000 (0.5%)
• Standard & Poor’s high-grade rating (Lease ratings are generally one notch lower than an issuer’s credit rating. As an example, if the City obtains a rating of AAA, the lease rating would be AA+).
Financing Statistics*
Final Maturity (in Years) 30 25 20 15
Year estimated to mature 2055 2050 2045 2040
True Interest Cost (TIC) 4.07% 3.87% 3.56% 3.14%
All-In TIC (includes costs) 4.19% 4.00% 3.72% 3.35%
Average Annual DS Payments $1,005,000 $1,090,000 $1,220,000 $1,460,000 Total Principal + Interest through Maturity 30,159,250 27,199,000 24,391,750 21,888,500 Redemption Provisions 10-Year 10-Year 10-Year 10-Year
Estimated Sources and Uses of Financing Proceeds*
Sources:
Par Amount of Bonds $15,455,000 $15,335,000 $15,200,000 $15,145,000 Reoffering Premium 1,875,863 1,994,727 2,126,602 2,184,438 Total Sources 17,330,863 17,329,727 17,326,602 17,329,438 Uses:
Deposit to Project Fund 17,000,000 17,000,000 17,000,000 17,000,000 Total Issuance Costs + Underwriter's Discount 330,863 329,727 326,602 329,438 Debt Service Reserve Fund - - - -
Total Uses 17,330,863 17,329,727 17,326,602 17,329,438
2025 Revenues vs. Annual Debt Service*
Measure Q Revenues 1st Year/No Growth 3,500,000 3,500,000 3,500,000 3,500,000 Average Annual DS Payments 1,005,000 1,090,000 1,220,000 1,460,000 Remaining Revenues to accumulate/invest 2,495,000 2,410,000 2,280,000 2,040,000 *All figures estimated based on market conditions as of December 2024.
Public Offering
21 February 3, 2025 Item 08
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PAGE 10
Private/Direct Placement (Bank Loan) Assumptions and Results • Financing terms of 15 years, 20 years and 25 years
• Project fund deposit of $17,000,000
• Costs of issuance totaling $200,000
• No underwriter’s discount
• High-grade credit (no official rating required)
Financing Statistics*
Final Maturity (in Years) 25** 20 15
Year estimated to mature 2050 2045 2040
True Interest Cost (TIC) 4.75% 4.55% 4.35%
All-In TIC (includes costs) 4.86% 4.68% 4.52%
Average Annual DS Payments $1,190,000 $1,330,000 $1,585,000 Total Principal + Interest through Maturity 29,749,738 26,559,578 23,776,330 Redemption Provisions 5-Year 5-Year 5-Year
Estimated Sources and Uses of Financing Proceeds*
Sources:
Par Amount of Bonds $17,200,000 $17,200,000 $17,200,000 Reoffering Premium - - -
Total Sources 17,200,000 17,200,000 17,200,000
Uses:
Deposit to Project Fund 17,000,000 17,000,000 17,000,000 Total Issuance Costs + Underwriter's Discount 200,000 200,000 200,000 Debt Service Reserve Fund - - -
Total Uses 17,200,000 17,200,000 17,200,000
2025 Revenues vs. Annual Debt Service*
Measure Q Revenues 1st Year/No Growth 3,500,000 3,500,000 3,500,000 Average Annual DS Payments 1,190,000 1,330,000 1,585,000 Remaining Revenues to accumulate/invest 2,310,000 2,170,000 1,915,000 *All figures estimated based on market conditions as of December 2024. ** 25-year private placement may have limited bank interest.
Private/Direct Placement (Bank Loan)
22 February 3, 2025 Item 08
CITY OF DEL MAR UNDERGROUNDING UTILITY PROJECT – FINANCING OVERVIEW AND ALTERNATIVES JANUARY 9, 2025
PAGE 11
Appendix:
Estimated Debt Service Schedules
23 February 3, 2025 Item 08
30-Year Public Offering
City of Del Mar
COPs/Lease Revenue Bonds
Undergrounding Project
Debt Service Schedule
Date Principal Interest Total P+I Bond Balance
05/01/2025 - - - 15,455,000.00
05/01/2026 230,000.00 772,750.00 1,002,750.00 15,225,000.00 05/01/2027 245,000.00 761,250.00 1,006,250.00 14,980,000.00 05/01/2028 255,000.00 749,000.00 1,004,000.00 14,725,000.00 05/01/2029 270,000.00 736,250.00 1,006,250.00 14,455,000.00 05/01/2030 285,000.00 722,750.00 1,007,750.00 14,170,000.00 05/01/2031 295,000.00 708,500.00 1,003,500.00 13,875,000.00 05/01/2032 310,000.00 693,750.00 1,003,750.00 13,565,000.00 05/01/2033 325,000.00 678,250.00 1,003,250.00 13,240,000.00 05/01/2034 345,000.00 662,000.00 1,007,000.00 12,895,000.00 05/01/2035 360,000.00 644,750.00 1,004,750.00 12,535,000.00 05/01/2036 380,000.00 626,750.00 1,006,750.00 12,155,000.00 05/01/2037 400,000.00 607,750.00 1,007,750.00 11,755,000.00 05/01/2038 420,000.00 587,750.00 1,007,750.00 11,335,000.00 05/01/2039 440,000.00 566,750.00 1,006,750.00 10,895,000.00 05/01/2040 460,000.00 544,750.00 1,004,750.00 10,435,000.00 05/01/2041 485,000.00 521,750.00 1,006,750.00 9,950,000.00 05/01/2042 510,000.00 497,500.00 1,007,500.00 9,440,000.00 05/01/2043 535,000.00 472,000.00 1,007,000.00 8,905,000.00 05/01/2044 560,000.00 445,250.00 1,005,250.00 8,345,000.00 05/01/2045 590,000.00 417,250.00 1,007,250.00 7,755,000.00 05/01/2046 615,000.00 387,750.00 1,002,750.00 7,140,000.00 05/01/2047 650,000.00 357,000.00 1,007,000.00 6,490,000.00 05/01/2048 680,000.00 324,500.00 1,004,500.00 5,810,000.00 05/01/2049 715,000.00 290,500.00 1,005,500.00 5,095,000.00 05/01/2050 750,000.00 254,750.00 1,004,750.00 4,345,000.00 05/01/2051 785,000.00 217,250.00 1,002,250.00 3,560,000.00 05/01/2052 825,000.00 178,000.00 1,003,000.00 2,735,000.00 05/01/2053 870,000.00 136,750.00 1,006,750.00 1,865,000.00 05/01/2054 910,000.00 93,250.00 1,003,250.00 955,000.00 05/01/2055 955,000.00 47,750.00 1,002,750.00 -
Total $15,455,000.00 $14,704,250.00 $30,159,250.00 -
NHA Advisors, LLC
Financial & Policy Strategies. Delivered.
24 February 3, 2025 Item 08
25-Year Public Offering
City of Del Mar
COPs/Lease Revenue Bonds
Undergrounding Project
Debt Service Schedule
Date Principal Interest Total P+I Bond Balance
05/01/2025 - - - 15,335,000.00
05/01/2026 320,000.00 766,750.00 1,086,750.00 15,015,000.00 05/01/2027 340,000.00 750,750.00 1,090,750.00 14,675,000.00 05/01/2028 355,000.00 733,750.00 1,088,750.00 14,320,000.00 05/01/2029 370,000.00 716,000.00 1,086,000.00 13,950,000.00 05/01/2030 390,000.00 697,500.00 1,087,500.00 13,560,000.00 05/01/2031 410,000.00 678,000.00 1,088,000.00 13,150,000.00 05/01/2032 430,000.00 657,500.00 1,087,500.00 12,720,000.00 05/01/2033 455,000.00 636,000.00 1,091,000.00 12,265,000.00 05/01/2034 475,000.00 613,250.00 1,088,250.00 11,790,000.00 05/01/2035 500,000.00 589,500.00 1,089,500.00 11,290,000.00 05/01/2036 525,000.00 564,500.00 1,089,500.00 10,765,000.00 05/01/2037 550,000.00 538,250.00 1,088,250.00 10,215,000.00 05/01/2038 575,000.00 510,750.00 1,085,750.00 9,640,000.00 05/01/2039 605,000.00 482,000.00 1,087,000.00 9,035,000.00 05/01/2040 635,000.00 451,750.00 1,086,750.00 8,400,000.00 05/01/2041 670,000.00 420,000.00 1,090,000.00 7,730,000.00 05/01/2042 700,000.00 386,500.00 1,086,500.00 7,030,000.00 05/01/2043 735,000.00 351,500.00 1,086,500.00 6,295,000.00 05/01/2044 775,000.00 314,750.00 1,089,750.00 5,520,000.00 05/01/2045 810,000.00 276,000.00 1,086,000.00 4,710,000.00 05/01/2046 855,000.00 235,500.00 1,090,500.00 3,855,000.00 05/01/2047 895,000.00 192,750.00 1,087,750.00 2,960,000.00 05/01/2048 940,000.00 148,000.00 1,088,000.00 2,020,000.00 05/01/2049 985,000.00 101,000.00 1,086,000.00 1,035,000.00 05/01/2050 1,035,000.00 51,750.00 1,086,750.00 -
Total $15,335,000.00 $11,864,000.00 $27,199,000.00 -
NHA Advisors, LLC
Financial & Policy Strategies. Delivered.
25 February 3, 2025 Item 08
20-Year Public Offering
City of Del Mar
COPs/Lease Revenue Bonds
Undergrounding Project
Debt Service Schedule
Date Principal Interest Total P+I Bond Balance
05/01/2025 - - - 15,200,000.00
05/01/2026 460,000.00 760,000.00 1,220,000.00 14,740,000.00 05/01/2027 485,000.00 737,000.00 1,222,000.00 14,255,000.00 05/01/2028 505,000.00 712,750.00 1,217,750.00 13,750,000.00 05/01/2029 535,000.00 687,500.00 1,222,500.00 13,215,000.00 05/01/2030 560,000.00 660,750.00 1,220,750.00 12,655,000.00 05/01/2031 585,000.00 632,750.00 1,217,750.00 12,070,000.00 05/01/2032 615,000.00 603,500.00 1,218,500.00 11,455,000.00 05/01/2033 645,000.00 572,750.00 1,217,750.00 10,810,000.00 05/01/2034 680,000.00 540,500.00 1,220,500.00 10,130,000.00 05/01/2035 715,000.00 506,500.00 1,221,500.00 9,415,000.00 05/01/2036 750,000.00 470,750.00 1,220,750.00 8,665,000.00 05/01/2037 785,000.00 433,250.00 1,218,250.00 7,880,000.00 05/01/2038 825,000.00 394,000.00 1,219,000.00 7,055,000.00 05/01/2039 865,000.00 352,750.00 1,217,750.00 6,190,000.00 05/01/2040 910,000.00 309,500.00 1,219,500.00 5,280,000.00 05/01/2041 955,000.00 264,000.00 1,219,000.00 4,325,000.00 05/01/2042 1,005,000.00 216,250.00 1,221,250.00 3,320,000.00 05/01/2043 1,055,000.00 166,000.00 1,221,000.00 2,265,000.00 05/01/2044 1,105,000.00 113,250.00 1,218,250.00 1,160,000.00 05/01/2045 1,160,000.00 58,000.00 1,218,000.00 -
Total $15,200,000.00 $9,191,750.00 $24,391,750.00 -
NHA Advisors, LLC
Financial & Policy Strategies. Delivered.
26 February 3, 2025 Item 08
15-Year Public Offering
City of Del Mar
COPs/Lease Revenue Bonds
Undergrounding Project
Debt Service Schedule
Date Principal Interest Total P+I Bond Balance
05/01/2025 - - - 15,145,000.00
05/01/2026 700,000.00 757,250.00 1,457,250.00 14,445,000.00 05/01/2027 735,000.00 722,250.00 1,457,250.00 13,710,000.00 05/01/2028 775,000.00 685,500.00 1,460,500.00 12,935,000.00 05/01/2029 810,000.00 646,750.00 1,456,750.00 12,125,000.00 05/01/2030 855,000.00 606,250.00 1,461,250.00 11,270,000.00 05/01/2031 895,000.00 563,500.00 1,458,500.00 10,375,000.00 05/01/2032 940,000.00 518,750.00 1,458,750.00 9,435,000.00 05/01/2033 990,000.00 471,750.00 1,461,750.00 8,445,000.00 05/01/2034 1,035,000.00 422,250.00 1,457,250.00 7,410,000.00 05/01/2035 1,090,000.00 370,500.00 1,460,500.00 6,320,000.00 05/01/2036 1,145,000.00 316,000.00 1,461,000.00 5,175,000.00 05/01/2037 1,200,000.00 258,750.00 1,458,750.00 3,975,000.00 05/01/2038 1,260,000.00 198,750.00 1,458,750.00 2,715,000.00 05/01/2039 1,325,000.00 135,750.00 1,460,750.00 1,390,000.00 05/01/2040 1,390,000.00 69,500.00 1,459,500.00 -
Total $15,145,000.00 $6,743,500.00 $21,888,500.00 -
NHA Advisors, LLC
Financial & Policy Strategies. Delivered.
27 February 3, 2025 Item 08
25-Year Private/Direct Placement (Bank Loan)
City of Del Mar
COPs/Lease Revenue Bonds
Undergrounding Project
Debt Service Schedule
Date Principal Interest Total P+I Bond Balance
05/01/2025 - - - 17,200,000.00
05/01/2026 375,000.00 817,000.00 1,192,000.00 16,825,000.00 05/01/2027 390,000.00 799,187.50 1,189,187.50 16,435,000.00 05/01/2028 410,000.00 780,662.50 1,190,662.50 16,025,000.00 05/01/2029 430,000.00 761,187.50 1,191,187.50 15,595,000.00 05/01/2030 450,000.00 740,762.50 1,190,762.50 15,145,000.00 05/01/2031 470,000.00 719,387.50 1,189,387.50 14,675,000.00 05/01/2032 490,000.00 697,062.50 1,187,062.50 14,185,000.00 05/01/2033 515,000.00 673,787.50 1,188,787.50 13,670,000.00 05/01/2034 540,000.00 649,325.00 1,189,325.00 13,130,000.00 05/01/2035 565,000.00 623,675.00 1,188,675.00 12,565,000.00 05/01/2036 595,000.00 596,837.50 1,191,837.50 11,970,000.00 05/01/2037 620,000.00 568,575.00 1,188,575.00 11,350,000.00 05/01/2038 650,000.00 539,125.00 1,189,125.00 10,700,000.00 05/01/2039 680,000.00 508,250.00 1,188,250.00 10,020,000.00 05/01/2040 715,000.00 475,950.00 1,190,950.00 9,305,000.00 05/01/2041 750,000.00 441,987.50 1,191,987.50 8,555,000.00 05/01/2042 785,000.00 406,362.50 1,191,362.50 7,770,000.00 05/01/2043 820,000.00 369,075.00 1,189,075.00 6,950,000.00 05/01/2044 860,000.00 330,125.00 1,190,125.00 6,090,000.00 05/01/2045 900,000.00 289,275.00 1,189,275.00 5,190,000.00 05/01/2046 945,000.00 246,525.00 1,191,525.00 4,245,000.00 05/01/2047 990,000.00 201,637.50 1,191,637.50 3,255,000.00 05/01/2048 1,035,000.00 154,612.50 1,189,612.50 2,220,000.00 05/01/2049 1,085,000.00 105,450.00 1,190,450.00 1,135,000.00 05/01/2050 1,135,000.00 53,912.50 1,188,912.50 -
Total $17,200,000.00 $12,549,737.50 $29,749,737.50 -
NHA Advisors, LLC
Financial & Policy Strategies. Delivered.
28 February 3, 2025 Item 08
20-Year Private/Direct Placement (Bank Loan)
City of Del Mar
COPs/Lease Revenue Bonds
Undergrounding Project
Debt Service Schedule
Date Principal Interest Total P+I Bond Balance
05/01/2025 - - - 17,200,000.00
05/01/2026 545,000.00 782,600.00 1,327,600.00 16,655,000.00 05/01/2027 570,000.00 757,802.50 1,327,802.50 16,085,000.00 05/01/2028 595,000.00 731,867.50 1,326,867.50 15,490,000.00 05/01/2029 625,000.00 704,795.00 1,329,795.00 14,865,000.00 05/01/2030 650,000.00 676,357.50 1,326,357.50 14,215,000.00 05/01/2031 680,000.00 646,782.50 1,326,782.50 13,535,000.00 05/01/2032 715,000.00 615,842.50 1,330,842.50 12,820,000.00 05/01/2033 745,000.00 583,310.00 1,328,310.00 12,075,000.00 05/01/2034 780,000.00 549,412.50 1,329,412.50 11,295,000.00 05/01/2035 815,000.00 513,922.50 1,328,922.50 10,480,000.00 05/01/2036 850,000.00 476,840.00 1,326,840.00 9,630,000.00 05/01/2037 890,000.00 438,165.00 1,328,165.00 8,740,000.00 05/01/2038 930,000.00 397,670.00 1,327,670.00 7,810,000.00 05/01/2039 975,000.00 355,355.00 1,330,355.00 6,835,000.00 05/01/2040 1,015,000.00 310,992.50 1,325,992.50 5,820,000.00 05/01/2041 1,065,000.00 264,810.00 1,329,810.00 4,755,000.00 05/01/2042 1,110,000.00 216,352.50 1,326,352.50 3,645,000.00 05/01/2043 1,160,000.00 165,847.50 1,325,847.50 2,485,000.00 05/01/2044 1,215,000.00 113,067.50 1,328,067.50 1,270,000.00 05/01/2045 1,270,000.00 57,785.00 1,327,785.00 -
Total $17,200,000.00 $9,359,577.50 $26,559,577.50 -
NHA Advisors, LLC
Financial & Policy Strategies. Delivered.
29 February 3, 2025 Item 08
15-Year Private/Direct Placement (Bank Loan)
City of Del Mar
COPs/Lease Revenue Bonds
Undergrounding Project
Debt Service Schedule
Date Principal Interest Total P+I Bond Balance
05/01/2025 - - - 17,200,000.00
05/01/2026 835,000.00 748,200.00 1,583,200.00 16,365,000.00 05/01/2027 875,000.00 711,877.50 1,586,877.50 15,490,000.00 05/01/2028 910,000.00 673,815.00 1,583,815.00 14,580,000.00 05/01/2029 950,000.00 634,230.00 1,584,230.00 13,630,000.00 05/01/2030 995,000.00 592,905.00 1,587,905.00 12,635,000.00 05/01/2031 1,035,000.00 549,622.50 1,584,622.50 11,600,000.00 05/01/2032 1,080,000.00 504,600.00 1,584,600.00 10,520,000.00 05/01/2033 1,130,000.00 457,620.00 1,587,620.00 9,390,000.00 05/01/2034 1,175,000.00 408,465.00 1,583,465.00 8,215,000.00 05/01/2035 1,230,000.00 357,352.50 1,587,352.50 6,985,000.00 05/01/2036 1,280,000.00 303,847.50 1,583,847.50 5,705,000.00 05/01/2037 1,335,000.00 248,167.50 1,583,167.50 4,370,000.00 05/01/2038 1,395,000.00 190,095.00 1,585,095.00 2,975,000.00 05/01/2039 1,455,000.00 129,412.50 1,584,412.50 1,520,000.00 05/01/2040 1,520,000.00 66,120.00 1,586,120.00 -
Total $17,200,000.00 $6,576,330.00 $23,776,330.00 -
NHA Advisors, LLC
Financial & Policy Strategies. Delivered.
30 February 3, 2025 Item 08
CITY OF DEL MAR UNDERGROUNDING UTILITY PROJECT – FINANCING OVERVIEW AND ALTERNATIVES JANUARY 9, 2025
PAGE 12
Disclosures
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. 31 February 3, 2025 Item 08
1050 Camino Del Mar, Del Mar, CA 92014 | 858.755.9313 | www.delmar.ca.us February 3, 2025
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 3 – UTILITY UNDERGROUNDING PROJECT FINANCING
ANALYSIS
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, the initial Task Order for Task 1 Utility Undergrounding Project Financing Analysis, dated July 8, 2024, and the subsequent Task Order 2 to further assess financing options dated November 18, 2024.
Consultant shall execute tasks related to Task Order 3 and serve as the City’s Municipal Advisor for purposes of preparing and issuing Undergrounding Program debt as described in the Consultant’s proposal and included in the Task Order as Exhibit A. The project costs for this task order are not-to-exceed $67,500, which will be paid from the proceeds of the financing.
The primary contact for this Task Order and invoicing is Marco Camacho, Finance Manager/Treasurer, who can be reached at [email protected] and (858) 375-9521.
Please sign and return a copy of this Task Order electronically through OneSpan, the City’s electronic document routing program. Please contact Senior 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
Marco Camacho, Finance Manager/Treasurer
Monica Molina, Finance Officer
32 February 3, 2025 Item 08
Task Order 3– NHA Advisors
February 3, 2025
EXHIBIT “A”
SCOPE OF WORK
Bond Issuance Municipal Advisory Services
Provide the following services related to the Citywide Undergrounding Program Financing.
• Summarize City project and proposed financing strategy for outside consultant technical understanding and work solicitations
• Establish and manage finance team distribution listing, financing schedule, due diligence data needs and task list; allocate tasks and duties for efficient and effective project execution
• Work cooperatively with assembled team (i.e. underwriter or broker-dealer) to develop detailed numerical analysis of financing options; independently verify all numerical options
• Work cooperatively with assembled team (i.e. bond counsel) to develop bond legal documentation; provide detailed review and commentary
• Work cooperatively with assembled team (i.e. disclosure counsel) to develop bond investor disclosure documentation (e.g. preliminary official statement); provide detailed review and commentary
• Lead and manage the development of credit rating strategy, documentation and presentation materials
• Review, prepare and “coach”, as required, City personnel for credit rating presentation
• Review and provide comment on draft financial and rating agency reports prior to publication
• Lead and manage, if applicable, solicitation and negotiation of bond insurance / reserve surety; provide independent cost-benefit analysis of same • Assist City with selection process for selection of financing participants (trustee, legal, specialized consulting needs, verification agents, etc.) • For Competitive sale: verify bids, restructure bond maturities as necessary • For Negotiated sale: manage Underwriter, negotiate pricing structures, act as liaison and advocate/fiduciary for City’s interests
• For Negotiated sale and underwriter due diligence questionnaire – discussion, advise and prepare City for accurate and appropriate responses • During the negotiated bond sale process, provide City independent analysis of comparable transactions and proposed bond structure and interest rates • During negotiated bond sale process, in real time as required, provide City with clarification and explanation of bond terminology presented bond numerical analyses
• During negotiated bond sale process, negotiate and/or advise, on behalf of and in the interests of City, with underwriter on desired improvements to bond structure and interest rates/yields
33 February 3, 2025 Item 08
Task Order 3– NHA Advisors
February 3, 2025
• Arrange for investment of escrow (if applicable), including analysis of SLGS vs OMS
• Assist City in negotiation of contracts, such as investment agreements, for bond proceeds, if applicable
• Review, on behalf of City, bond purchase contract for accuracy of bond sale figures and acceptable terms; advise City of our recommendation to sign this document if approved
• Review final legal, disclosure and closing documents for accuracy prior to City execution
• Develop and distribute Closing Flow of Funds memorandum guiding all parties as to how bond monies will be transferred—and in what sequence—on the day of closing.
• As requested, prepare and present to City’s elected governing body, a presentation outlining the results of the financing
Budget:
Contingent compensation for implementation of financing will be paid from financing proceeds at the time of closing (release of bond proceeds to City). Municipal advisory fee will be $67,500. If assistance with bond & disclosure counsel, underwriter, placement agent or trustee is requested, the following contingent fees will be charged:
Request for Proposal Process Fee
Broker-Dealer (Underwriter/Placement
Agent) $5,000
Bond/Disclosure Counsel $2,500
Special Tax Consultant $2,000
Trustee $1,000
NHA will credit the City $20,000 from Task 1 services against the financing fee.
Expenses (Out-of-Pocket)
All expenses will be billed at cost to the City. Expenses will be limited to those necessary for the completion of the project. Estimated expenses will not exceed $2,500 (typically include 3rd party data collection, filing fees, etc.)
34 February 3, 2025 Item 08
City of Del Mar
Agenda Report
TO: Honorable Mayor and City Council Members
FROM: Martin Boyd, Principal Engineer
Monica Molina, Finance Manager/Treasurer
Sarah Krietor, Administrative Services Manager
Ashley Jones, City Manager
DATE: November 18, 2024
SUBJECT: Citywide Undergrounding Program Financial Analysis and Potential Funding Options
REQUESTED ACTION/RECOMMENDATION:
Staff recommends the City Council: 1) Receive a presentation from City staff and NHA Advisors, LLC (NHA), based on NHA’s Technical Memorandum (Attachment A); 2) Provide feedback and recommendations regarding an initial borrowing to fund Undergrounding Districts X1A and 1B construction and the overall preferred funding strategy for the City’s Undergrounding Program; 3) Approve Task Order 2 with NHA for $20,000 to further evaluate financing options and structure (Attachment B); 4) Authorize the City Manager to execute the Task Order and any amendments up to $5,000; and 5) Amend the Fiscal Year 2024-2025 Operating and Capital Budget as described in the Fiscal Impact section of this report.
EXECUTIVE SUMMARY:
Citywide undergrounding has been a community goal since 2016, following approval of Measure Q by the voters. With the completion of the Tewa Court/10th Street pilot project and Utility Undergrounding District (UUD) 1A (Stratford Court South) construction underway, the City is working to identify viable and fiscally responsible potential funding strategies for undergrounding future districts, starting with the UUD X1A (Crest Canyon).
Staff and the City’s financial consultant, NHA Advisors, have completed a comprehensive financial analysis and developed a dynamic model to assist the City Council with selecting a funding strategy that best addresses the community’s goals and project challenges.
Three potential financing strategies will be discussed in this report that range from a “pay-as-yougo” model (no financing) to a “finance-as-you-go” model (periodic and strategic financing when needed). The timeline for completing the Undergrounding Program is 20 to 35 years depending on which strategy is ultimately pursued by the City. The current base total project cost is estimated to be $105 million in today’s dollars, which may increase to over $200 million when applying inflation and financing costs over the life of the project.
In September and October, the City’s Undergrounding Project Advisory Committee (UPAC) and Finance Committee received detailed presentations from staff and NHA Advisors and both committees recommended that the Council direct staff to further investigate public (bond) and private (bank loan) financing options to fund the next phase of undergrounding. In addition, UPAC 1 November 18, 2024 Item 11 35 February 3, 2025 Item 08 City Council Agenda Report
Undergrounding Program Financial Analysis
November 18, 2024
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.
If the City Council decides to proceed with further evaluating borrowing options to fund UUD X1A and 1B construction, staff will execute Task Order 2 with NHA (Attachment B) and return to the Finance and Undergrounding Committees with more detailed information about borrowing options, timing, and cost in early 2025, followed by a presentation and recommendation to the City Council.
BACKGROUND:
Measure Q, a 1% local transaction and use tax (sales tax) measure initiated by the City of Del Mar (City), was approved by voters in November 2016, and went into effect in April 2017.
Measure Q is a general tax allowing for the funds to be used for any City governmental purpose and is derived from taxable purchases made in the City of Del Mar as well as online and vehicle purchases by Del Mar residents. As such, it is most comparable to sales tax revenues received by the City.
The ballot language for Measure Q stated that funding would be used for “general city services and infrastructure projects, such as improvement of streets and sidewalks, utility undergrounding, public landscapes, improvement of community parks, trails and recreation facilities; police, crime prevention, fire protection and other public safety services.” In October 2017, the City Council prioritized use of Measure Q funds for Downtown Streetscape, undergrounding of utility poles citywide, and completion of the Shores Park Master Plan and future implementation. This was reaffirmed in September 2018, through adoption of Resolution 2018-63 (Attachment C). Since that time, citywide undergrounding efforts have been ongoing; Downtown Streetscape was completed in 2020; and the Shores Park Master Planning effort was placed on hold during COVID with next steps to be considered by the Council in early 2025.
The City’s Undergrounding Program Advisory Committee (UPAC) was established in 2017, and over the course of approximately two years, the Committee developed a project delivery plan, estimated project costs, assisted with prioritizing undergrounding districts, drafted communications plan, and provided policy recommendations for City Council consideration.
On August 5, 2019, the City Council adopted the UPAC recommended Project Delivery Plan (PDP) to achieve the citywide Undergrounding Program (UP), with the identified goals of improving overall public safety; reducing fire risks in fire critical areas; and improving property values and public/private views. The PDP includes prioritization of districts based on fire risk, density, and circuit logistics of San Diego Gas & Electric (SDG&E) utilities. Based on the information available at the time, UPAC anticipated the project timeframe could range anywhere from 12 to 26 years.
The key underlying assumptions for the PDP, as recommended by UPAC and supported by the City Council, are as follows:
• The City should remain committed to prioritizing and eventually undergrounding all overhead utilities.
2 November 18, 2024 Item 11 36 February 3, 2025 Item 08 City Council Agenda Report
Undergrounding Program Financial Analysis
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• The City should cover all costs in the public right-of-way and on City property, with the exception of the cost for non-joint trenching for the telecommunications utilities infrastructure. • Private property owners and other government agencies should cover all the costs associated with the undergrounding project that is on their property. • The City should limit expenditures on the UP to using Measure Q money and do the best the City can with those funds, even if it means the City cannot underground its entire jurisdiction as fast as the citizens wish, consistent with commitments to Shores Park and the Downtown Streetscape projects.
The City Council agenda report from April 15, 2019, noted that if the costs from the bidding process exceeded expectations, the Council could consider various alternatives, including costsharing with private properties through the formation of an assessment district. However, this was not recommended by UPAC and pursuing this as an option at this point in the program implementation could create many potential issues. Some issues that may arise include things such as inequity among property owners with some having to pay toward their undergrounding work through an assessment and not others; assessments can only be formed through a majority vote of the affected property owners; potential impacts to Council approved district areas that were strategically scoped and prioritized based on the factors described above; and risk of creating an inefficient piecemeal design that results in higher overall project costs.
A copy of the August 5, 2019, City Council agenda report with more detailed information, including the PDP, can be found on the City’s undergrounding webpage.
With regard to undergrounding, to date, the City completed a small pilot project known as Tewa Court/10th Street in February 2023; started construction of Utility Undergrounding District (UUD) 1A with an expected completion date of August 2025; is finalizing design of UUD X1A with construction expected to begin in spring 2025 pending availability of financing; formed UUD 1B with 30% design complete and 60% design anticipated by year-end; and recently completed formation of UUD 2 with design on hold pending approval of a UP funding strategy.
Measure Q Financial Overview
Although Measure Q revenues are legally considered general fund revenues and reported as such in the City’s Annual Comprehensive Financial Report (ACFR), they are internally set aside and tracked separately to ensure they are being used for Council designated purposes and in accordance with Council direction, which is reviewed and reported on annually by the City’s Measure Q Citizen Oversight Committee.
To date, the City has collected $20.9 million in Measure Q revenues (including interest earned), and a total of $11.1 million has been spent. An additional $3.5 million is anticipated in revenue in Fiscal Year 2024-2025, with an additional $12.7 million allocated to fund upcoming UP expenditures. Below is a chart that provides more detailed Measure Q revenue and expenditure information.
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Measure Q Funds Amount (in millions)
Revenues Received to Date (FY24 preliminary) $20.9
Downtown Streetscape Expenditures ($7.0)
Undergrounding Expenditures ($3.9)
Shores Park Master Planning Expenditures ($0.02)
Maintenance of Effort Paving (MOE) Expenditures ($0.2)
Measure Q Balance (June 30, 2024) $9.8
Projected Revenue (FY 2025) $3.4
Projected Expenditures (FY 2025) including UUD 1A (full) & X1A (partial)
($12.7)
Projected Measure Q Balance (June 30, 2025) $0.5
Based on anticipated undergrounding expenditures in the current fiscal year, the projected fund balance at the end of FY 2024-2025 is approximately $500K.
More detailed information regarding the history of Measure Q and accomplishments to date can be found at: https://www.delmar.ca.us/DocumentCenter/View/9623/Item-12--Measure-QOverview Utility Undergrounding Process Overview
It is important to understand the different stages of a utility undergrounding project, starting with district formation through completion, as each of these stages include activities that generate project costs.
The process starts with district formation requiring the City Council to form an UUD before any design work can begin. Once the City Council has created a UUD, an approximately 30-to-38- month design process begins. There are many tasks during the project's design phase, such as surveying existing conditions, design by utility companies and City civil design, coordinating service lateral design with homeowners, easement coordination and recordation, and the City preparing California Environmental Quality Act (CEQA) documentation and permits.
Once the design process is complete, a construction bid package is prepared and the City undertakes a competitive public bidding process in accordance with State law. The City Council is then asked to consider awarding a construction contract to the lowest responsive and responsible bidder.
After the selected contractor is awarded a contract and issued a notice to proceed, construction of the underground utility systems and the subsequent removal of overhead utility systems in the public right-of-way commences and is anticipated to take between 12 to 24 months for each district. This construction process consists of four phases: trenching/conduit by the City and property owners, cable & connections by utility companies, service cutovers by utility companies, and pole removals by utility companies.
UP General Cost Estimates
Since 2016, the City has engaged specialized consultants, Utility Specialists and Lee & Ro, City Finance and Undergrounding Program advisory committees, and SDG&E, in an ongoing process to understand and forecast UP general costs.
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Prior to placing Measure Q on the ballot for voter consideration, the concept of undergrounding utility lines throughout the City was preliminarily evaluated by the City’s Finance Committee, who recommended in April 2016 the City Council consider a one-cent sales tax measure that could be used to amortize debt related to citywide undergrounding with an estimated total project cost of $25-30 million. The basis for this early Finance Committee estimate is not entirely clear.
Additionally, Utility Specialists provided an early 2016, pre-Measure Q, estimate of $18 million for total undergrounding costs. This estimate was incomplete in that it only considered construction costs and did not capture all project costs as further described below.
Before true project costs were known through completion of UUD Tewa Court/10th Street and UUD 1A bidding process, Rough Order of Magnitude (ROM) estimates were used to predict UP costs, which have evolved over time, as described below, based on the best information available.
Utility Specialists Original Program Estimate Incomplete In 2019, Utility Specialists developed an incomplete program cost estimate of $26.5 million based primarily on a $323 per linear foot cost of overhead conversion. Cost of overhead conversion refers to the estimated cost per linear foot to relocate overhead electrical line underground.
Unfortunately, Utility Specialists’ estimate was very preliminary and incomplete as it did not take into consideration many important cost factors, as further described below. In comparison to current project estimates, the initial Utility Specialists cost estimate was deficient in that it:
• Was for hard construction costs only. It did not include necessary “soft costs” for utility and environmental consultants, project management, homeowner communication and coordination, civil engineering and surveying, protected tree surveys, bidding and construction management, etc.
• Assumed simple trench patch work only for restoration and did not include additional repair for curbs, gutters, concrete sidewalk/pedestrian ramp, concrete or paver driveways, and retaining walls.
• Was based on previous historical cost data mostly from private land development projects, not public projects completed in existing streets.
• Did not include estimated cost escalation to the anticipated year of construction.
Lee & Ro, UPAC, and SDG&E Program Estimates
On August 5, 2019, City Council approved recommendations made by UPAC and City staff pertaining to the preliminary undergrounding district boundary map (i.e., blocks) and prioritization of the blocks related to the PDP.
As part of this process, Lee & Ro developed a program cost estimate of $51.6 million at a cost of $719 per linear foot of overhead conversion. As part of developing the PDP, the City Council instructed staff and UPAC to complete a deeper review of the costs to reconcile the differences in the program cost estimates provided by Utility Specialists and Lee & Ro.
Through this review, UPAC developed their own program cost estimate of $32-$42 million which is a cost of $464-$609 per linear foot of overhead conversion. UPAC also stated in their 5 November 18, 2024 Item 11 39 February 3, 2025 Item 08 City Council Agenda Report
Undergrounding Program Financial Analysis
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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 42 February 3, 2025 Item 08 City Council Agenda Report
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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 43 February 3, 2025 Item 08 City Council Agenda Report
Undergrounding Program Financial Analysis
November 18, 2024
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 44 February 3, 2025 Item 08 City Council Agenda Report
Undergrounding Program Financial Analysis
November 18, 2024