Agenda, regular meeting, first session — Del Mar City Council, April 7, 2026 (part 3 of 3)

APPROVED AS TO FORM:
________________________________
Christina Cameron, City Attorney
City of Del Mar
ATTEST AND CERTIFICATION:

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

CITY OF DEL MAR
I, SARAH KRIETOR, Administrative Services Manager/City Clerk of the City of Del Mar, California, DO HEREBY CERTIFY, that the foregoing is a true and correct copy of Resolution No. 2026-XX, adopted by the City Council of the City of Del Mar, California, at a Regular Meeting held the 7th day of April, 2026, by the following vote:

AYES:

NOES:

RECUSE:

ABSENT:

ABSTAIN:

Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
6 April 7, 2026 Item 11
1/5/2026 DRAFT
Jurisdiction
January 2025
Population3
Maintained
Miles3 FY 2026* FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Carlsbad 116,368 430.35 $5,023 $5,130 $5,270 $5,407 $5,546 $5,687 Chula Vista 281,401 557.28 $9,649 $9,856 $10,127 $10,391 $10,658 $10,931 Coronado 22,610 45.76 $826 $843 $865 $886 $908 $930
Del Mar4 3,950 25.53 $136 $141 $144 $147 $151 $154
El Cajon 104,932 195.91 $3,570 $3,645 $3,745 $3,842 $3,940 $4,040 Encinitas 61,956 174.88 $2,425 $2,476 $2,543 $2,609 $2,675 $2,743 Escondido 150,425 321.81 $5,301 $5,414 $5,563 $5,707 $5,853 $6,003 Imperial Beach4 26,369 45.80 $742 $936 $960 $984 $1,008 $1,033 La Mesa 60,908 151.76 $2,284 $2,332 $2,395 $2,457 $2,519 $2,582 Lemon Grove 28,163 61.63 $1,040 $1,061 $1,089 $1,117 $1,144 $1,172 National City 58,965 103.88 $1,997 $2,039 $2,094 $2,147 $2,201 $2,257 Oceanside 174,340 430.61 $6,425 $6,563 $6,743 $6,918 $7,096 $7,277 Poway 50,379 174.89 $2,146 $2,191 $2,250 $2,308 $2,366 $2,425 San Diego 1,408,937 2,780.29 $48,062 $49,095 $50,450 $51,773 $53,110 $54,473 San Marcos4 97,123 195.12 $2,452 $2,523 $2,618 $2,710 $2,803 $2,898 Santee4 59,568 122.64 $1,296 $1,332 $1,379 $1,424 $1,595 $2,024 Solana Beach4 12,986 42.54 $252 $264 $279 $293 $308 $323 Vista 101,599 176.15 $3,390 $3,462 $3,556 $3,648 $3,741 $3,836 County4 509,160 1,983.05 $21,017 $21,437 $22,068 $22,683 $23,300 $23,922 Subtotal Street & Road*** 3,330,139 8,019.9 $118,034 $120,740 $124,136 $127,451 $130,923 $134,709 Local EMP5 $7,364 $7,368 $7,528 $7,688 $7,899 $8,105
Local Smart Growth5 $8,592 $8,596 $8,782 $8,970 $9,216 $9,456 *Estimate updated in January 2026
**Revenue estimates for planning purposes only. Payments will be based on actual sales tax monthly receipts from the State Board of Equalization. *** Totals may not add up due to rounding

4. Revenues are net of estimated commercial paper and/or bond debt service payments

5. EMP to be distributed on a project by project basis; Smart Growth to be allocated based on Call for Projects process.

TransNet Revenue Forecast - Local Street Improvement Program1 Revised FY 2026 and Estimates for FY 2027 to FY 2031 (in $000s)**

1.Projection of revenues are based on estimate of growth rate on taxable sales as forecasted by SANDAG and excludes interest and prior year excess funds.

2. Distribution of revenue estimates are based on the 2004 Proposition A Extension: San Diego Transportation Improvement Program and Expenditure Plan and apportioned as follows: (a) $50,000 annual base per agency ; (b) balance distributed on a formula of 2/3 population and 1/3 maintained miles.

3. Population numbers are based on the Department of Finance January 2025 population; Maintained miles figures are based on Caltrans 2024 California Public Road Data (December 2025).

DRAFT

ATTACHMENT B
7 April 7, 2026 Item 11
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:

TO: Honorable Mayor and City Councilmembers
FROM: Martin Boyd, Principal Engineer
Joe Bride, Public Works Director
Via Ashley Jones, City Manager
DATE: April 7, 2026
SUBJECT: Resolution Establishing the Date by Which Overhead Electric and Communication Facilities Shall be Removed in the Underground Utility District 1A (Stratford Court South)
REQUESTED ACTION/RECOMMENDATION:

Staff recommends that the City Council conduct a public hearing to adopt a Resolution (Attachment A) establishing the date by which overhead electric and communication facilities shall be removed in the Underground Utility District 1A (Stratford Court South) in accordance with Del Mar Municipal Code (DMMC) Section 23.54.030.

DISCUSSION/ANALYSIS:

The City of Del Mar continues to implement the Citywide Undergrounding Program (UP), which will remove utility poles and replace overhead cables for electricity and telecommunications with underground lines. A map of the planned citywide Utility Undergrounding Districts (UUDs) is included as Attachment B.

On July 12, 2021, the City Council authorized formation of UUD 1A (Stratford Court South).

Stratford Court South (1A) was identified as the next district after completion of the Tewa Court/10th Street UUD pilot project on February 8, 2023. UUD 1A includes 56 poles and 7,500 linear feet of overhead conversion to 11,165 linear feet of underground trench from 4th Street to 12th Street west of Camino del Mar, including 227 properties and 464 residences.

There are fifty-five properties which required undergrounding of their private service lateral at the expense of the property owner. A map of Stratford Court South (1A) is included as Exhibit A to Attachment A.

The City awarded a construction contract to Teichert Utilities on July 8, 2024, following a public bid solicitation process in mid-2024. A notice to proceed was issued in August 2024, and City construction reached substantial completion in April 2025. The City’s undergrounding construction activities are primarily for trenching and installation of conduit and substructures. Additionally, completion of the project necessitates close coordination with the utility companies – SDG&E, AT&T, Charter Communications/Spectrum, and Crown Castle. The City Council approved a cost agreement with SDG&E on April 21, 2025, for the undergrounding construction work. The utility companies have mostly completed installation of cables and connections, service cutovers, and overhead removals, with the final step of 1 April 7, 2026 Item 12
City Council Agenda Report
Resolution Establishing the Date by Which Overhead Electric and Communication Facilities Shall be Removed in the Underground Utility District 1A (Stratford Court South) April 7, 2026

Page 2 of 2 ends

pole removals currently anticipated in April 2026. Detailed UP updates were provided on February 17, 2026, including for Stratford Court South (1A).

Pursuant to DMMC Section 23.54.030, a Council resolution was adopted on March 3, 2025, establishing the date by which properties within the UUD must be ready to receive underground service (Attachment C). Property owners have completed installation of service lateral conduits as required per DMMC.

Pursuant to DMMC Section 23.54.030, a Council resolution is required to establish the date by which all overhead facilities, including utility poles, overhead wires and associated overhead structures in the UUD shall be removed. Staff recommends the date of April 30, 2026, as a feasible and reasonable date by which overhead facilities shall be removed.

FISCAL IMPACT:

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

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 15302(d) (Class 2) in that the project includes the undergrounding of public utilities where the surface will be restored to the existing condition, and CEQA Guidelines Section 15304 (Class 4) in that any grading required to provide access to utilities constitutes a minor alteration in the condition of the land. The proposed project has been designed based on recommendations in an Arborist’s Report titled “City of Del Mar Assessment of Torrey Pines” prepared by West Coast Arborists dated June 3, 2021 to avoid impacts and/or the removal of healthy, mature, scenic trees as a result of the proposed activities (report is on-file with the City of Del Mar, 1050 Camino del Mar, Del Mar, CA 92014). It has been further been determined that none of the six exceptions to the use of a categorical exemption would apply to this project (CEQA Guidelines Section 15300.2) and the project has been designed to avoid sensitive environmental resources.

NEXUS TO CITY COUNCIL GOALS AND PRIORITIES:

Utility Undergrounding is listed as a Tier 1 City Council priority for FY 2025-2026.

ATTACHMENTS:

Attachment A – Resolution Establishing the Date by Which Overhead Electric and Communication Facilities Shall be Removed in Underground Utility District 1A (Stratford Court South)
Exhibit A to Attachment A – UUD 1A Stratford Court South Map Attachment B – Citywide Undergrounding Program Map
Attachment C – Resolution No. 2025-04 Establishing the Date by Which Underground Utility District 1A (Stratford Court South) Properties Must be Ready to Receive Underground Service 2 April 7, 2026 Item 12

ATTACHMENT A
RESOLUTION NO. 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL

MAR, CALIFORNIA, ESTABLISHING THE DATE BY WHICH

OVERHEAD ELECTRIC AND COMMUNICATION FACILITIES

SHALL BE REMOVED IN THE UNDERGROUND UTILITY
DISTRICT 1A (STRATFORD COURT SOUTH)
WHEREAS, on July 12, 2021, the City Council of the City of Del Mar adopted Resolution 2021-37 establishing District 1A (Stratford Court South) as a designated and declared Underground Utility District (“UUD”) of the City of Del Mar; and WHEREAS, the UUD is in the general public interest and includes public benefits such as an improved pedestrian and bicycle environment, increasing public access to public recreational areas, reducing the risk of fire or power outage from downed poles or lines, and improved aesthetics within the District; and WHEREAS, the removal of all poles, overhead wires and associated overhead structures, and the underground installation of wires and facilities for supplying electric, communication, and similar or associated service within the UUD is required in order to fulfill the goal of the UUD; and
WHEREAS, all properties within the District must be ready to receive underground service, and all poles, overhead wires and associated overhead structures shall be removed by the time specified in a subsequent resolution, pursuant to Section 23.54.030 of the Del Mar Municipal Code; and
WHEREAS, a reasonable time shall be allowed for removal and underground installation, having due regard for the availability of labor, materials, and equipment necessary for such removal and for the installation of such underground facilities; and WHEREAS, on March 3, 2025, the City Council the City Council of the City of Del Mar adopted Resolution 2025-04 establishing the date by which Underground Utility District 1A (Stratford Court South) properties must be ready to receive underground service; and WHEREAS, the date and by which poles and other structures shall be removed shall signify that the District is fully formed, and at which time it will become unlawful to construct or maintain above-ground facilities beyond the date established by the City Council for removal of such facilities; and
WHEREAS, the City of Del Mar conducted analysis of the UUD work progress and identified April 30, 2026, as a feasible and reasonable date by which all overhead facilities, including utility poles, overhead wires and associated overhead structures in the UUD shall be removed.
3 April 7, 2026 Item 12
Resolution 2026-XX

Page 2 of 3 ends

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Del Mar, California, that:

1. The above recitals are true and correct and incorporated herein.

2. By Council action, April 30, 2026, is established as the date by which the Underground Utility District is fully formed and by which all poles, overhead wires and associated overhead structures, and the underground installation of wires and facilities for supplying electric, communication, and similar or associated service within the Underground Utility District shall be removed.

3. The City Clerk is hereby directed to notify all affected property owners as shown on the last equalized assessment rolls, and all affected utilities, of the adoption of this Resolution within fifteen (15) days after the date of such adoption, and that all poles and related overhead structures are to be removed from within the District on or before the applicable date set forth in the Resolution in accordance with Section 23.54.070 of the Del Mar Municipal Code. This notice shall also state the work required to change the facilities on the premises so as to receive electric, communication, or community antenna television or similar or associated service provided or to be provided by the utility company shall be accomplished on or before the applicable date set forth in the previously noticed Resolution No. 2025- 04 in accordance with Section 23.54.070 of the Del Mar Municipal Code.

4. The City Clerk is hereby directed to record a certified copy of this Resolution with the office of the County Recorder, in accordance with Section 23.54.030 of the Del Mar Municipal Code.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Del Mar, California, at the Regular Meeting held this 7th day of April, 2026. _____________________________________
Tracy Martinez, Mayor
City of Del Mar
APPROVED AS TO FORM:
________________________________
Christina Cameron, City Attorney
City of Del Mar
4 April 7, 2026 Item 12
Resolution 2026-XX

Page 3 of 3 ends

ATTEST AND CERTIFICATION:

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

AYES:

NOES:

RECUSE:

ABSENT:

ABSTAIN:

Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
5 April 7, 2026 Item 12
Stratford Ct.

Utility Undergrounding District 1A (UUD 1A) - Stratford Court South Pacific Ln. 611 613
615 639 703 0
709
711
717
715 713
155 157
151 149
143 141
137 135
125 127
119
156
154 152
140
136 134
128 126
120 118
110 111
0 0
832
730
152 151
143
129
123
119
113
818
152
142
134 131
128
120
110
828 157
147
113
0 135
1206 1224 1220 147
1145
151 153
149
1104
143
135
0 119
111
101
0 0
1030
1010
950
922 920910 142
156 154
159 157 158 149 140
134 136
123
116
110
118
106
100
137
125
121
123
119
111
107
101
152
146144
150
136 138
128
120
100
931
111 113
119
129
141
149
106
116 114
120
128
138 134
217 1047 1035219225234 220 1023 1005215931919903 910 944 231233 227 221223 240 236 232 222 Stratford Ct.

Stratford Ct.

Penny Ln.
4th Street
6th Street
7th Street
Camino del Mar
8th Street
Shippley Ln.
9th Street
12th Street
10th Street
201 390 423 427 230 232 234 411 419 220224 415 226 228 210 212214 216 218 404
402
412
410
424 510526 516 425 5171/2 501-517 519 710 531 541 543 159 533 157
151 149
135 132
127
117 118
126
141 144
132
150
158 155
553
551 601
Sherry Ln.
603
Sea Orbit Ln.

Little Orphan Alley
Stratford Ct.

Melanie Wy.
905 06/15/2021
LEGEND Description
District Limits
Trench Work Beyond District Limits 11th Street
0 222 142
151
1050
1012
940
151
143
146
921
133
153
820 750
131
115
158
120
133
143
522
141
108
112
128
1/2
117
152
526
B,C,D,E 244 10231/2 227

DEL MAR
CITY HALL 1050 0
129
D-G
www.delmar.ca.us/up
6 April 7, 2026 Item 12

ATTACHMENT B
7 April 7, 2026 Item 12
RESOLUTION NO. 2025-04

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL

MAR, CALIFORNIA, ESTABLISHING THE DATE BY WHICH
UNDERGROUND UTILITY DISTRICT 1A (STRATFORD COURT

SOUTH) PROPERTIES MUST BE READY TO RECEIVE

UNDERGROUND SERVICE
WHEREAS, on July 12, 2021, the City Council of the City of Del Mar adopted Resolution 2021-37 establishing District 1A (Stratford Court South) as a designated and declared Underground Utility District (“UUD”) of the City of Del Mar; and WHEREAS, the UUD is in the general public interest and includes public benefits such as an improved pedestrian and bicycle environment, increasing foot traffic, reduced risk of fire or power outage from downed poles or lines, and improved aesthetics within the district; and
WHEREAS, the removal of all poles, overhead wires and associated overhead structures, and the underground installation of wires and facilities for supplying electric, communication, and similar or associated service within the UUD is required in order to fulfill the goal of the UUD; and
WHEREAS, the time within which property in said district must be ready to receive underground service and by which poles, overhead wires and associated overhead structures shall be removed shall be set by subsequent resolution, pursuant to Section

23.54.030 of the Del Mar Municipal Code; and
WHEREAS, a reasonable time shall be allowed for removal and underground installation, having due regard for the availability of labor, materials, and equipment necessary for such removal and for the installation of such underground facilities; and WHEREAS, property owners within Work Zone 1 of the UUD were notified on November 26, 2024, to install underground service laterals by January 26, 2025, which is a feasible and reasonable date to complete work. Work Zone 1 includes properties on Stratford Court from 4th Street to 6th Street, and 4th Street; and WHEREAS, property owners within Work Zone 2, excluding those residing on Little Orphan Alley and 9th Street, of the UUD were notified on January 27 and 28, 2024, to install underground service laterals by March 28, 2025, which is a feasible and reasonable date to complete work. Work Zone 2 includes properties on Stratford Court from 6 th Street to 9th
Street, as well as Sherrie Lane, Little Orphan Alley, and 9th Street; and WHEREAS, property owners within Work Zone 3, excluding those residing on Melanie Way, but including those residing on Little Orphan Alley and 9th Street, of the UUD were notified from February 3 to 10, 2024, to install underground service laterals by April 10, 2025, which is a feasible and reasonable date to complete work. Work Zone 3 includes properties on Stratford Court from 9
th Street to 12th Street, as well as Melanie Way, 10th
Street, Penny Lane, Sea Orbit Lane, and Pacific Lane; and 8 April 7, 2026 Item 12
Resolution No. 2025-04

Page 2 of 3 ends

WHEREAS, property owners on Melanie Way of the UUD will be notified around March 14, 2024, to install underground service laterals by May 14, 2025, which is a feasible and reasonable date to complete work.

WHEREAS, the time by which poles, overhead wires and associated overhead structures shall be removed shall be set by subsequent resolution.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Del Mar, California, that:

1. The above recitals are true and correct.

2. By Council action, March 3, 2025, is hereby established as the date by which the properties within Work Zone 1 of the District 1A (Stratford Court South) must be ready to receive underground service.

3. By Council action, March 28, 2025, is hereby established as the date by which the properties within Work Zone 2, excluding those on Little Orphan Alley and 9th Street, of the District 1A (Stratford Court South) must be ready to receive underground service.

4. By Council action, April 10, 2025, is hereby established as the date by which the properties within Work Zone 3, excluding those on Melanie Way but including those on Little Orphan Alley and 9th Street, of the District 1A (Stratford Court South) must be ready to receive underground service.

5. By Council action, May 14, 2025, is hereby established as the date by which the properties on Melanie Way of the District 1A (Stratford Court South) must be ready to receive underground service.

6. The City Clerk is hereby directed to notify all affected property owners as shown on the last equalized assessment rolls of the adoption of this Resolution within fifteen (15) days after the date of such adoption, and that that the work required to change the facilities on the premises so as to receive electric, communication, or community antenna television or similar or associated service provided or to be provided by the utility company shall be accomplished on or before the applicable date set forth in the Resolution, as shown in Exhibit A, in accordance with Section 23.54.070 of the Del Mar Municipal Code.

7. The City Clerk is hereby directed to record a certified copy of this Resolution with the office of the County Recorder, in accordance with Section 23.54.030 of the Del Mar Municipal Code.
9 April 7, 2026 Item 12
Resolution No. 2025-04

Page 3 of 3 ends

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Del Mar, California, at the Regular Meeting held this 3
rd day of March, 2025.
_____________________________________
Terry Gaasterland, Mayor
City of Del Mar
APPROVED AS TO FORM:
________________________________
Leslie E. Devaney, City Attorney
City of Del Mar
ATTEST AND CERTIFICATION:

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

CITY OF DEL MAR
I, SARAH KRIETOR, Administrative Services Manager/City Clerk of the City of Del Mar, California, DO HEREBY CERTIFY, that the foregoing is a true and correct copy of Resolution No. 2025-04, adopted by the City Council of the City of Del Mar, California, at a Regular Meeting held the 3
rd day of March, 2025, by the following vote:

AYES: Deputy Mayor Martinez, Councilmembers Quirk and Spelich NOES: None
RECUSE: Mayor Gaasterland
ABSENT: None
ABSTAIN: None
Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
10 April 7, 2026 Item 12
Stratford Ct.

Stratford Ct.

Little Orphan Alley
Stratford Ct.

DEL MAR
CITY HALL 1050 0
129
D-G
www.delmar.ca.us/up WORK ZONE 1
March 3
WORK ZONE 2
March 28

LITTLE ORPHAN ALLEY
April 10

MELANIE WAY
May 14
WORK ZONE 3
April 10
9TH STREET
April 10
The following map includes date by which
properties must be ready to receive
underground service per the Resolution. Exhibit A
11 April 7, 2026 Item 12
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:

TO: Honorable Mayor and City Councilmembers
FROM: Nestor Machado, Associate Management Analyst
Karen Brindley, Planning and Community Development Director Via Ashley Jones, City Manager
DATE: April 7, 2026
SUBJECT: Initial Consideration of an Appeal of Encroachment Permit (EP) 25-049 EP Appellant and Applicant: Paul Rael
Appellant’s Address: 1612 Stratford Way (APN: 299-280-47-00) REQUESTED ACTION/RECOMMENDATION:

Staff recommends that the City Council uphold the denial of Encroachment Permit EP25- 049 (Attachment A) and decline to set the appeal for a de novo hearing.

BACKGROUND:

Stratford Way is a narrow-improved street within the hillside community. The improved road width along the project frontage at 1612 Stratford Way is approximately 16 feet wide, with an unauthorized decomposed granite shoulder installed in the public right-of-way that is approximately 8 feet wide. However, because the north side of Stratford Way adjacent to the property does not restrict parking, the actual road width can be reduced to as little as 8 feet when vehicles are parked on the street.

West of the subject property, street parking is prohibited due to the narrow width and curvature of the street as it loops north and turns into Luneta Drive.

Prior to the redevelopment of the subject site in 2020, the property contained a singlefamily residence with landscaping extending to the edge of pavement, with the driveway access located where the decomposed granite currently exists.

In 2021, Mr. Rael (Applicant) applied for an Encroachment Permit (EP) EP21-066 to install 3-foot by 6-foot concrete pavers over the existing decomposed granite within the public right-of-way, which was denied because it was found to be inconsistent with Del Mar Municipal Code (DMMC) Section 23.28.040 – Prohibited Encroachments and Section

23.282070 – Findings for Approval.
1 April 7, 2026 Item 13
City Council Agenda Report
Appeal of EP25-049 (Initial Consideration)
April 7, 2026

Page 2 of 7 ends

On October 3, 2024, Code Enforcement Case CE24-170 was opened after the City received a complaint regarding newly placed gravel along the frontage of 1612 Stratford Way.

Staff determined that the Applicant had not received authorization to install the loose gravel as shown in Attachment B and therefore required its removal. The Applicant was advised to contact the City to obtain an encroachment permit for any improvements in the public right-of-way.

It appears that the Applicant subsequently removed the loose gravel and installed decomposed granite material within the right-of-way without authorization.

On January 8, 2025, the Applicant applied for a Long-term, Minor Encroachment Permit (EP25-006) proposing:
 A new concrete walkway,
 A six-inch concrete curb adjacent to the property fence line,  Grasscrete (concrete squares with grass between them), and  Decomposed granite (DG) improvements within the public right-of-way.

The proposal would improve approximately 8 feet of the public right-of-way along the northern property frontage.

The Applicant indicated the proposed improvements would provide a more durable surface than the existing unauthorized DG. This portion of the right-of-way is primarily used for parking due to the narrow width of Stratford Way.

On February 25, 2025, the City denied EP25-006 because the proposed encroachments would create the appearance that the area within the right-of-way is reserved for private use, which is prohibited by DMMC Section 23.28.080(B)(3).

In addition, staff could not make two of the six findings for approval under DMMC Section

23.28.070(C.1-6), specifically:
 Finding 2 – The proposed encroachments would not unreasonably interfere with the intended use of the City right-of-way; and
 Finding 5 – The proposed encroachments would not be detrimental to the interests of the general public.

Staff advised the Applicant that, due to the narrow width of Stratford Way, asphalt would be the only material likely to be supported for improvements within the right-of-way 2 April 7, 2026 Item 13
City Council Agenda Report
Appeal of EP25-049 (Initial Consideration)
April 7, 2026

Page 3 of 7 ends

because it would functionally widen the street, which is important due to the existing narrow street width.

On April 24, 2025, the Applicant submitted another Long-term, Minor Encroachment Permit (EP25-049) proposing:
 A mountable concrete curb between the roadway and DG shoulder,  A 6-inch concrete curb adjacent to the property fence line,  Relocation of walkway pavers, and
 Asphalt grasscrete within the DG shoulder (as shown Attachment C).

This proposal was substantially similar to EP25-006, with the addition of the mountable curb and the asphalt grasscrete material.

On January 5, 2026, the City denied EP25-049 after staff again determined that the proposed encroachments are inconsistent with DMMC Section 23.28.040(B)(3), which prohibits encroachments that create the impression that public right-of-way is reserved for private use. Furthermore, staff again could not make Findings 2 and 5 related to interference with the intended use of City right-of-way and potential detriment to the interests of the general public.

The proposed encroachments would modify the existing DG shoulder in a manner that could convey that the area is reserved for private use, potentially discouraging public parking.

A visual timeline is included as Attachment D showing the condition of the property dating back to its redevelopment in 2020.

APPEAL/STAFF RESPONSES:

On January 20, 2026, the Appellant (Paul Rael) filed an appeal with the City Clerk of the denial of EP25-049 (Attachment E). Below are the Appellant’s reasons for appeal (shown in bold text) with staff’s responses (shown in italics):

Appellant Point 1: The design has been revised with additional technical information for consideration. The Appellant and his representatives revised the proposed encroachments with additional information after EP25-049 was denied that staff did not have the benefit of considering prior to denial. The Appellant indicates that the additional information, provided after the denial was issued, depicts how the existing number of informal parking spaces will be the same before and after the improvements and demonstrates how the design allows for public on-street parking. Furthermore, the revised plan provides a 5-foot safety buffer to allow pedestrians a refuge off the paved surface when vehicular traffic passes. In addition, curb and gutter drainage improvements would be built to City standards.
3 April 7, 2026 Item 13
City Council Agenda Report
Appeal of EP25-049 (Initial Consideration)
April 7, 2026

Page 4 of 7 ends

Staff Response: The City’s practice is to review and make a determination on submitted proposals based on the information provided by the Applicant. Typically, staff will work with applicants to come up with an acceptable solution, however, after the denial of EP25- 006 and throughout the review process of EP25-049, staff indicated that an acceptable solution would be to propose asphalt within the shoulder in the ROW. Throughout a multiyear process, the City considered multiple types of materials proposed by the Applicant and consistently conveyed that the frontage should be improved with asphalt, based on the street design width and the required DMMC findings. This process resulted in two Encroachment Permit denials. The proposed material, asphalt “grasscrete,” would consist of asphalt squares with gravel in between (rather than grass, as the name infers). The City Manager’s decision is final unless appealed. An applicant would need to submit a new application and go through the review process for any new proposals.

Appellant Point 2: The Appellant seeks to improve the parking shoulder section of public right-of-way between the Appellant’s property line and Stratford Way paved roadway. According to the Appellant, this area is comprised of dirt that washes away during rain events and is wide enough to be used as a parking shoulder by neighbors on Stratford Way, an area where on-street parking is limited. The parking shoulder area appears unfinished, and the Appellant proposes to beautify the area at his expense for the benefit of the City.

Mr. Rael is proposing this improvement with a grasscrete base covered in charcoal gray decomposed granite to provide (and continue) the informal on-street parking. The color of the grasscrete and DG will closely match the color of the roadway asphalt, giving the appearance that the parking shoulder is an extension of the street. In addition, the grasscrete and DG solution is permeable which would allow stormwater to percolate into the soil. Moreover, the proposed curb and gutter improvements along the property frontage will match the existing curb-and-gutter design located immediately west of the property. No loss of parking is anticipated, and the parking shoulder can accommodate up to three (3) vehicles, and the proposal maintains the same areas for informal parking.

The concrete paver walkway proposed at the entry provides an entry path to the residence but still allows vehicles to drive over it to park.

Granting the approval of the EP would not convey that the encroached upon area is owned or reserved for private use as an existing fence and landscaping along the property line clearly delineates private property from public right-of-way. The proposed materials and colors provide an informal parking shoulder that do not match the private improvements of the home therefore, not creating an impression that the parking shoulder is or will be used for private property use.

Staff Response: Del Mar has many narrow streets; therefore, when development is proposed including use of the City right-of-way, each site is evaluated carefully for appropriate frontage improvements. This section of Stratford Way has approximately 16 feet of paved roadway that should the City need to widen the street in the future, the 4 April 7, 2026 Item 13
City Council Agenda Report
Appeal of EP25-049 (Initial Consideration)
April 7, 2026

Page 5 of 7 ends

proposed encroachments would be a limiting factor. Since parking is available on the north side of Stratford Way along the frontage of the property, there is only approximately 8 feet of improved traversable asphalt road width for vehicles if there is a vehicle parked on the street. Emergency vehicle apparatus may be unable to navigate through the area due to the narrow width of the road as shown in Attachment C. Moreover, the City has concerns about potential runoff over time from loose gravel associated with the asphalt grasscrete/DG solution. With vehicles constantly parking over this material, the material may loosen and erode on the street during rain events.

While the concrete pavers for the entryway provide a hardscaped surface that vehicles can drive over, they may give the impression that the area is private property and could reduce available parking space. In addition, the proposed materials incorporate a design element that differs from a clear delineation of public right-of-way (e.g. asphalt) to private property. While the existing fence on the property line may provide a delineation, the fence also acts as a safety barrier between the public traversable space and the grade drop-off on the Appellant’s property as the property itself sits at a lower elevation than the street.

Appeal Point 3: The Del Mar Community Plan description about residential streets.

The Appellant cited an excerpt from the Community Plan describing residential streets as having an informal “country road” character due to the lack of sidewalks, curbs and gutters, and the presence of private landscaping along the edges of pavement. This characteristic is considered by many in the community to be a positive aesthetic feature worthy of preservation. Mr. Rael is providing public improvements that beautify the City’s right-of-way and is aesthetically pleasing, consistent with the Community Plan. The staff recommendation of asphalt material to match with the existing roadway material is not a positive aesthetic feature consistent with the Community Plan.

Staff Response:

While aesthetics is considered and is one of the findings for approval, the City’s practice regarding similar improvements within the right-of-way is to preserve the ability to widen City streets when necessary. The EP was denied on the basis that Findings 2 and 5 of DMMC Section 23.28.070 could not be made because the proposed improvements would potentially interfere with use of the right-of-way should the City widen the street in the future. In addition, the proposed encroachments may be a detriment to the interests of the general public by proposing decorative-like material that is inconsistent with material typically used for public parking. In this specific encroachment scenario, the proposed material may alter the intended use of the right-of-way, potentially deterring public parking and creating a pinch point if vehicles are parked along this street segment.

CONCLUSION:

DMMC Section 23.28.020 defines a Long-term, Minor Encroachment Permit as an improvement designed to have a permanent appearance and intended use for a period 5 April 7, 2026 Item 13
City Council Agenda Report
Appeal of EP25-049 (Initial Consideration)
April 7, 2026

Page 6 of 7 ends

of 365 days or more, including but not limited to driveway aprons, pathways, walkways, and vegetation.

Pursuant to DMMC Section 23.28.070, there are six required findings to approve a Longterm, Minor Encroachment Permit 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 all six findings can be made.

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

The proposed encroachments will not endanger public health, safety or welfare, or the surrounding property. The proposed encroachments would improve an area currently comprised of dirt and located within a parking shoulder cutout that is used primarily for vehicle parking.

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

Staff cannot make this finding. As the road width of Stratford Way is approximately 16’, the proposed encroachments may deter the public from parking within this shoulder due to the encroachments giving the impression that the shoulder is private property.

Therefore, it could result in a loss of public parking. This would unreasonably interfere with the intended use of a right-of-way.

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.

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

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

The proposed encroachments would create minor changes to the ROW and will not cause an unnecessary change in the character of the community.

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

Staff cannot make this finding. The proposed encroachments in the City right-of-way would occur within a wider section of the right-of-way currently used for public parking, which would unnecessarily limit parking in this area. Furthermore, the proposed asphalt 6 April 7, 2026 Item 13
City Council Agenda Report
Appeal of EP25-049 (Initial Consideration)
April 7, 2026

Page 7 of 7 ends

grasscrete material gives the impression that this portion of the public right-of-way is private property. This could deter the use of publicly available parking.

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

The improved width of Stratford Way is 16 feet, and the Appellant installed DG with rolled curb along the property frontage right-of-way is approximately 8 feet wide. Therefore, the proposed encroachments are only proposing to enhance the existing materials and not further converting significant area of public property to private use.

Based on the information above, staff cannot make two of the six findings and therefore cannot approve EP25-049. As such, staff recommends that the City Council uphold the denial of EP25-049 (Attachment A) and deny setting an appeal for a de novo hearing.

FISCAL IMPACT:

There is no fiscal impact related to this agenda item as this is a private development proposal. All fees associated with the appeal were paid for by the Appellant.

ENVIRONMENTAL IMPACT:

The proposed City Council action does not constitute a “project” under the definition set forth in the California Environmental Quality Act (CEQA) Guidelines Section 15378(a)(1) 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 – EP25-049 Denial Letter
Attachment B – Gravel within the ROW
Attachment C – EP25-049 Plan
Attachment D – Visual Timeline
Attachment E – Appeal of EP25-049
7 April 7, 2026 Item 13
1050 Camino Del Mar, Del Mar, CA 92014 | 858.755.9313 | www.delmar.ca.us January 5, 2026
Paul Rael
1612 Stratford Way
Del Mar, CA 92014
[email protected]
Subject: Denial of Encroachment Permit (EP) 25-049 (1612 Stratford Way) A request for authorization to 1) remove the existing concrete walkway pavers and add new concrete walkway pavers to the east of the existing pavers, and 2) install a new concrete curb and asphalt grasscrete material along the property frontage within the public rightof-way.

This letter is to notify you of the denial of your application for Encroachment Permit EP25-049 to utilize the public right-of-way adjacent to 1612 Stratford Way to install concrete pavers, a new concrete curb, and asphalt grasscrete material within the parking shoulder of the public right-ofway along the property’s frontage.

As indicated in the February 25, 2025, denial letter for EP25-006 and in accordance with Del Mar Municipal Code (DMMC) Section 23.28.040(B)(3) (Prohibited Encroachments), “Any encroachment that would convey an impression or appearance that the encroached upon area is owned by or reserved solely for the private use of the adjacent property with no associated public benefit to the community”, is specifically prohibited.

The proposed encroachments under EP25-049 would be prohibited because the new concrete pavers would create an impression that the walkway is private property by creating a seamless connection between the existing pavers on private property with the proposed pavers in the public right-of-way. In addition, the installation of asphalt grasscrete material with a new mountable concrete curb within the parking shoulder in the public right-of-way creates the impression that the parking shoulder is private property.

In addition, DMMC Section 23.28.070(C.1-6) (Findings for Approval) specifies that an Encroachment Permit may only be approved or conditionally approved if all six findings can be made. For EP25-049, the City cannot make all six findings. Specifically:
• DMMC 23.28.070 (C.2)
The proposed encroachment will not unreasonably interfere with the intended use of a City right-of-way or easement.

The proposed encroachment is in an area dedicated for public parking on Stratford Way.

As the road width of Stratford Way is approximately 16’, the proposed pavers would be Attachment A 8 April 7, 2026 Item 13
EP25-049 (1612 Stratford Way)
Denial Letter
January 5, 2026
installed a few feet east of the existing concrete pavers in the public right-of-way and would result in a loss of public parking on the street. • DMMC 23.28.070 (C.5)
The proposed encroachment will not be a detriment to the interests of the general public.

The proposed pavers would match the existing pavers in the City right-of-way; however, these pavers would encroach in a wider section of the public right-of-way that is used for public parking, which would unnecessarily limit parking in this area. Furthermore, the proposed asphalt grasscrete material gives the impression that the parking shoulder within the public right-of-way is private property. This could deter the use of publicly available parking.

The decision of the Assistant City Manager is final unless a written appeal is filed with the City Clerk’s office ([email protected]), accompanied with a processing fee, within ten (10) working days from the date of notice of the action taken on the application. The appeal is then forwarded to the City Council, which determines at the initial consideration whether to reject the appeal, thereby upholding the Assistant City Manager’s decision, or to set the matter for a subsequent date for a new (de novo) public hearing review.

If you have any questions on this matter, please contact Nestor Machado, Associate Management Analyst at (858) 755-9314 or email [email protected].

Clem Brown
Assistant City Manager
CB:nm
Attachments
Attachment A – Proposed EP Plans
Attachment A 9 April 7, 2026 Item 13
Attachment B 10 April 7, 2026 Item 13

EXISTING ENTRY WALKWAY

TO REPLACE DEMO

NEW RAILING WALKWAY
42" HIGH
ABOVE FIN.

GRADE
(EXISTING HOUSE

EXISTING DRIVEWAY
134.00 ABOVE N.G.

STRATFORD WAY
N72029 W 117.44'

63.8'
135.8'
135
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135.8'
136.5'
F.G.

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LANDSCAPE

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CURB
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EXISTING

EXISTING BACKFLOW

PREVENTER

EXISTING AGAVE
NEW 4" CONCRETE
CURB
EXISTING 3'-4" CURB AT WEST

NEIGHBOR- SEE PHOTO BELOW
NEW 3'-4" CURB TO CONNECT TO EXISTING
CURB TO THE WEST - SEE DETAIL 5
3' - 4"
PL
PL
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3' - 4"

NEW GRASSCRETE INFILL PER CITY SPECS
-

PROPERTY LINE
NEW CONC. CURB 4" WIDE
PER CITY STANDARDS (B1/G-06 STD DWG)

LANDSCAPE W/ BLACK
MULCH

RAELS PROPERTY

CITY PROPERTY

NEW PAVING

NEW CONCRETE CURB TO

MATCH AND ALIGN WITH

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EXISTING CURB AT WEST NEIGHBOR GRASSCRETE

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MATCH EXISTING GRASSCRETE
AND GRAVEL SAMPLE ON SITE.

CONTRACTOR TO MATCH

EXISTING GRASSCRETE AND
GRAVEL SAMPLE ON SITE.

EXISTING 3'-4" CURB AT WEST
NEIGHBOR. NEW CURB TO EXTEND
TO PROPOSED SITE.

PROPOSED CURB EXTENSION

TO THE EAST
Attachment C 11 April 7, 2026 Item 13
Attachment D 12 April 7, 2026 Item 13
Attachment D 13 April 7, 2026 Item 13
Attachment E 14 April 7, 2026 Item 13
Attachment E 15 April 7, 2026 Item 13
Attachment E 16 April 7, 2026 Item 13
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:

TO: Honorable Mayor and City Councilmembers
FROM: Martin Boyd, Principal Engineer
Polly Robertson, Management Analyst
Joe Bride, Public Works Director
Via Ashley Jones, City Manager
DATE: April 7, 2026
SUBJECT: Approval of Major Arterial Median Design and Task Order with MW Peltz & Associates for Final Design
REQUESTED ACTION/RECOMMENDATION:

Staff recommends that the City Council: 1) Approve the conceptual design for the Major Arterial Medians Improvements Project; 2) Approve a $120,585 Task Order for Final Design Services with MW Peltz & Associates (Attachment A); 3) Approve a $10,000 contingency; 4) Authorize the City Manager to execute the Task Order and any subsequent amendments within the contingency; and 5) Authorize an amendment to the FY 2025-26 Operating and Capital Budget allocating an additional $30,000 from the General Fund to the Project.

BACKGROUND:

Many of the existing major arterial medians throughout the City of Del Mar are currently underdeveloped or have minimal landscaping. As such, the City of Del Mar intends to develop drought tolerant landscaping and irrigation efficiency improvements along major arterial median segments and enhance the overall appearance. Based on feedback from the Parks and Recreation Committee and City Council approval, staff is initially targeting four major areas including: 1) Camino del Mar (CDM), 15th Street to San Dieguito River; 2) Jimmy Durante Boulevard (JDB)/Via De La Valle Triangle; 3) JDB Roundabout to the CDM merge; and 4) CDM 4th to 9th Street. Staff intends to complete the final design for the Major Arterial Median Improvements Project by the end of Fiscal Year (FY) 2026- 2027 with the first phase of construction beginning in FY 2027-2028 pending funding availability.

Conceptual Design
On July 22, 2024, the City issued a Task Order (TO) to Michael Baker International’s (MBI) subconsultant, MW Peltz & Associates, to prepare conceptual designs for the four identified segments of landscape improvements (Attachments B to E). MW Peltz & 1 April 7, 2026 Item 14
City Council Agenda Report
Major Arterial Median Design and Task Order with MW Peltz & Associates April 7, 2026

Page 2 of 3 ends

Associates conceptual landscape design was accomplished with thoughtful review and feedback from staff. The plants chosen for the project were selected from varieties that are known to flourish in the San Diego coastal environment (Attachment F). Plant types were further screened for their low water use as well as their striking aesthetic appeal. Further, the subconsultant’s design team surveyed the existing medians and surrounding areas to ascertain which plants seemed to be growing successfully and to omit plant types that appeared to struggle.

The proposed design layout is termed as “mass planting” or has sometimes been referred to as “landscape painting”. This style of design layout focuses on creating larger areas of the same plant and focuses on the plant’s visual traits rather than the individual plant itself. This style of design layout results in bold areas of plant color and texture that can be arranged in artistic forms and patterns in the landscape.

MW Peltz & Associates also assisted in preparing conceptual construction cost estimates for each segment, which staff used to develop a conceptual project cost estimate of $1.77 to $1.95 million (Attachment G). Staff proposes to proceed with final design for all segments, with construction phased based on funding availability. Additionally, the largest segment, CDM from 15th Street to the San Dieguito River, can be divided into two phases if needed, with the limits and timing to be coordinated with the Camino Del Mar Bridge Replacement Project.

Task Order for Final Design
In order to proceed to the final design phase, the City Council is being asked to approve a $120,585 TO with MW Peltz & Associates to provide landscape architectural and irrigation construction drawings, specifications, and refined cost estimates for the project (Attachment A). The construction drawings and specifications will include information necessary for developing complete bids and for properly executing the project work.

FISCAL IMPACT:

Approval of the recommended action will result in an amendment to the Fiscal Year (FY) 2025-2026 Operating and Capital Budget to allocate an additional $30,000 from the General Fund as shown below:

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.

PROJECT FUND ACCOUNT AMOUNT
Major Arterial Medians General Fund 21.7000.7027 $30,000 2 April 7, 2026 Item 14
City Council Agenda Report
Major Arterial Median Design and Task Order with MW Peltz & Associates April 7, 2026

Page 3 of 3 ends

NEXUS TO CITY COUNCIL GOALS AND PRIORITIES:

This item is listed as a Tier 3 City Council priority for FY 2025-2026 and FY 2026-2027.

ATTACHMENTS:

Attachment A – Task Order with Michael Baker International’s Subconsultant-MW Peltz & Associates
Exhibit A – Scope of Services
Attachment B – Camino del Mar - 15th Street to San Dieguito River Conceptual Design Attachment C – Jimmy Durante Boulevard /Via De La Valle Triangle Conceptual Design Attachment D – Jimmy Durante Boulevard Roundabout to the CDM merge Conceptual Design
Attachment E – Camino del Mar – 4th to 9th Street Conceptual Design Attachment F – Del Mar Streetscapes Plant List
Attachment G – Conceptual Cost Estimate
3 April 7, 2026 Item 14
1050 Camino Del Mar, Del Mar, CA 92014 | 858.755.9313 | www.delmar.ca.us April 7, 2026
Michael Baker International SENT VIA EMAIL
Attn: Geoff Retemeyer, PE, TE
5050 Avenida Encinas, Suite 260
Carlsbad, CA 92008
[email protected]
RE: TASK ORDER & NOTICE TO PROCEED FOR FINAL DESIGN MAJOR ARTERIAL MEDIAN IMPROVEMENTS – (ACCOUNT 21.7000.7027)
This Task Order (TO) and Notice to Proceed (NTP) is issued pursuant to the terms and conditions contained in the as-needed Civil Engineering, Traffic Engineering, and Development Review Services Agreement between the City of Del Mar and Michael Baker International, Inc. (Consultant), the term for which is December 8, 2025, to December 8, 2028.

Consultant shall execute tasks related to the Final Design for the Major Arterial Median Improvements performed by Consultant’s subconsultant MW Peltz & Associates, as described in the Consultant’s proposal dated February 20, 2026, and included as Exhibit A to this Task Order.

The project cost for this Task Order shall not exceed $120,585 unless a task order amendment is authorized by the City Manager for extended consulting services. The project schedule shall commence upon execution of this Task Order/Notice to Proceed, and shall be completed by July 1, 2027, to the satisfaction of the Public Works Director, in accordance with the proposed Scope of Work included in Exhibit A.

The primary contact for this Task Order and invoicing is Martin Boyd, Principal Engineer, who can be reached at [email protected] and (858) 375-9531. Please sign and return a copy of this Task Order electronically through OneSpan, the City’s electronic document routing program.

Please contact Senior Management Analyst Kseniia Izgarskaia at [email protected] or (858) 375-9560 with any questions about executing this Task Order.

Approved by: Accepted by:

City of Del Mar Michael Baker International
_____________________________________ _______________________________________ Ashley Jones Date Tim Thiele Date
City Manager Vice President
cc: Joe Bride, Public Works Director
Martin Boyd, Principal Engineer
Polly Robertson, Management Analyst
Exhibit A: MW Peltz & Associates Services Scope of Work ATTACHMENT A 4 April 7, 2026 Item 14
M W P e l t z + A s s o c i a t e s , I n c .
2 8 7 0 W h i p t a i l L o o p E , S u i t e 2 2 1
C a r l s b a d , C A 9 2 0 10
8 5 8 . 4 8 1 . 0 8 8 8 8 5 8 . 4 8 1 . 6 8 0 8 f a x P L A 4934 February 20, 2026
City of Del Mar
2010 Jimmy Durante Boulevard
Suite 120
Del Mar, CA 92014
Attn: Mr. Martin Boyd, P.E.

Dear Martin,
Thank you for the opportunity to prepare this proposal for the street median planting and irrigation for five segments of medians in the city. We prepared plans for two of the five back in 2016, but the plans were never implemented due to budget restrictions at the time. Those two segments include Camino Del Mar from Seaview north to Via de La Valle, and the second is the triangle island at the northeast entry to the city on Jimmy Durante Boulevard.

The three new segments that are part of our proposed scope are along Jimmy Durante from the existing roundabout, south to the merge with Camino Del Mar, and a segment of Camino Del Mar from 4th to 9th Street. In addition, we are dividing the Camino Del Mar at 15th to the lagoon into two segments for potential funding purposes.

We estimate the base sheet count for each segment to be as follows:

CDM at 15th to the lagoon bridge Ph1 3 Plan Base Sheets CDM at 15th to the lagoon bridge Ph2 2 Plan Base Sheets JD/VDLV Triangle 1 Plan Base Sheet
JD, Roundabout to CDM Merge 2 Plan Base Sheets
CDM, 4th to 9th 2 Plan Base Sheets
The following is our understanding of the design scope and associated fees for your consideration.

PROPOSAL FOR LANDSCAPE ARCHITECTURAL SERVICES

PROJECT DESCRIPTION
Del Mar Street Improvements
Del Mar, CA
SCOPE OF WORK:

Provide landscape architectural construction drawings, specifications, and cost estimates for each of the five street segments listed above.

All but one of the five segments will be irrigated with recycled water and those irrigation plans will be prepared per the County of San Diego Department of Environmental Health and Quality requirements and circulated for their review and approval. The segment that will be irrigated with potable water is the portion along Jimmy Durante from the roundabout to the CDM merge. Michael Baker’s office has determined the water pressure in the recycled water line is too low to effectively operate an irrigation system, without the use of a pump. Therefore, we have been informed that recycled water is not an option for this segment.

ATTACHMENT A, EXHIBIT A 5 April 7, 2026 Item 14
Del Mar Street Improvements
Del Mar, CA
02/20/26
2 Section I – Construction Documents
Work will commence upon receipt of the most current site plan including street and median layout, utilities, and existing grading in AutoCAD format. Any revisions to the site or scope following the start or completion of the Construction Documents shall be considered extra work and will require an additional work agreement prior to continuing drawings. Construction Drawings and Specifications shall provide information necessary for developing complete bids and for properly executing the Project work. The services in this section will be limited to the following:
a. Prepare Construction Documents for all five segments as a single project at 60%, 90%, and Final completion to show the proposed planting, irrigation and hardscape improvements for the medians.
b. Planting, irrigation, and hardscape specifications will be prepared using the Green Book along with supplemental instructions if required. c. Prepare planting plans with plant legend to identify plant locations, sizes and species. Plans will show quantity of each species. The Planting Plans will also describe decorative hardscape treatments such as rock and paving treatments. d. Prepare irrigation plans to show irrigation heads or drip line layout, valves, controller, and pipe runs and sizes. Required irrigation calculations per local and State ordinance will be included with the plans.
e. Prepare 60%, 90% and Final cost estimates for each segment. f. Recycled water title sheets will be prepared for the four segments where recycled water is proposed.
g. Submit 60%, and 90% CD set to the city for review and comment. h. Revise Construction Documents and incorporate city comments at the 90% and Final submittal phases.
i. Meeting time is included, up to a maximum of 3 hours during this phase of work. j. Submit Final Construction Documents (100%) to the City.

Section II – DEHQ Submittal
The services in this section shall be limited to the following:
a. Submit (all four segments that propose to use recycled water) plans to the County DEHQ, and water purveyors for review and approval. b. Modify plans as requested by DEHQ.
c. Obtain DEHQ, water purveyor, and water district approvals for recycled water plans.

Section III – Bid Assistance
a. Not Included
Section IV – Construction Administration
a. Not Included
ATTACHMENT A, EXHIBIT A 6 April 7, 2026 Item 14
Del Mar Street Improvements
Del Mar, CA
02/20/26
3 FEE and REIMBURSABLE ITEMS
The fees for the services described above will be as follows:
60% Construction Documents, a lump sum amount of .........................................................................$41,975 90% Construction Documents, a lump sum amount of .........................................................................$34,400 Final Documents, a lump sum amount of....................................................................................................$29,000 DEHQ Submittal, a lump sum amount of............................................................................... $15,210 Total.................................................................................................................................... $120,585 Bid Assistance and Construction Administration services are not included in this proposal.

Payment for all completed services will be due and payable at the first of each month following invoice.

The following items may be required for your project, and if they are, they shall be considered reimbursable expenses and billed in addition to the amounts listed above:

1. All reproduction services including color copies, scans, enlargement and reproduction of all drawings (at cost plus 15%)

2. Deliveries such as Federal Express, Express Mail, local messenger, etc. (at cost plus 15%)

3. Soil Test for horticultural analysis (at cost plus 15%)

EXCLUSIONS
Based upon our current understanding of the project scope, we exclude the following services:

1. Field trips to nurseries, suppliers and tree growing grounds to tag plant material

2. Arborist services

3. Plans for work outside of work limits

4. Existing Conditions, Survey, Demolition, Grading and Drainage Plans

5. Geotechnical Engineering and reports

6. Electrical Engineering

7. Existing irrigation and planting inventory plans

8. Agency fees

9. Irrigation Pump design

10. Bid Assistance, Construction Administration, Record Drawings / As-Built Plans

11. Irrigation Audit
Additional services can be negotiated when requested. The following hourly rates will be used in any negotiations:

Senior Designer .......................................$165.00/hour Project Manager.....................................$185.00/hour Senior Landscape Architect..............$210.00/hour

CLIENT RESPONSIBILITIES
Client will provide said plans and data, if available to the Client, at no cost to MW Peltz + Associates, Inc. plans and data include the following items:

1. Certified land survey of the site, giving grades and lines of streets, pavement and adjoining properties, right-of-ways, restrictions, easements, zoning, deed restrictions and contours of the site; locations, dimensions and complete data pertaining to ATTACHMENT A, EXHIBIT A 7 April 7, 2026 Item 14
Del Mar Street Improvements
Del Mar, CA
02/20/26
4 existing improvements, plantings, irrigation, available services and utilities, both public and private, as those plans exist.

2. Accurate, to scale electronic files if available, plans and drawings showing exact locations, elevations and sizes of proposed improvements; site grading plans of proposed topography of project site; locations, elevations and proposed utility lines and facilities.

3. All engineering for grading, drainage and utilities prepared for this and all relevant previous projects.

4. Providing promptly full information regarding the project requirements.

5. Designating a representative to act on its behalf with respect to the project.

Client’s representative will examine documents submitted by the landscape architect and will render decisions promptly to avoid unreasonable delay in the progress of the landscape architect’s services.

6. In the event of any litigation arising from or related to this Agreement or the services provided under this Agreement, the prevailing party shall be entitled to recover from the non-prevailing party all reasonable costs incurred, including staff time, court costs, attorneys’ fees and all other related expenses in such litigation.

7. In the event of a civil suit, the client agrees that prior to filing suit against the Landscape Architect, the client will engage another Landscape Architect to verify and certify, after reviewing the proposal and any subsequent Agreement, the plans and specifications, the project fines and site conditions, that there is justifiable cause for the suit.

Upon your review of this Proposal, please sign below and return a copy to our firm, as your authorization to proceed. Thank you once again for this opportunity to work with you on this project.

Sincerely,
Howard Pierce
Senior Landscape Architect
Approval Signature
Client Signature Date
Printed Name
Title
ATTACHMENT A, EXHIBIT A 8 April 7, 2026 Item 14
CAMINO DEL MAR 29TH STSANDY LN
15 10 3
15 3 8
15 7
12 1

EXISTING TREES TO
REMAIN 6 5 8

BOULDERS
COBBLE
10" WIDE MAINTENANCE

STRIP WITH EMBEDDED
COBBLE

STAMPED AND COLORED

CONCRETE PAVING

RANDOM STONE PATTERN
DESERT STONE COLOR 4 6 3 1 7 9 5 6 4 10 7
10 3
15 9 14 15 5 10 6

EXISTING TREES TO
REMAIN

CAMINO DEL MAR

SANDY LN
11 15

STAMPED AND COLORED

CONCRETE PAVING

RANDOM STONE PATTERN

DESERT STONE COLOR
10" WIDE MAINTENANCE STRIP

EMBEDDED COBBLE IN

COLORED CONCRETE
15 DECORATIVE

BOULDERS
COBBLE
10 14 6 3 8 13 7 9 6 4 10 12 13 8 6 14 10 3 3
CITY OF DEL MAR City of Del Mar
1050 Camino del Mar, Del Mar, CA 92014
T 858.755-9313 F 858.755-2794
www.delmar.ca.us
MW PELTZ + ASSOCIATES, INC.

LANDSCAPE ARCHITECTURE

URBAN DESIGN
SOLANA BEACH, CALIFORNIA 92078
P: 858.481.0888 F: 858.481.6808
RLA 2010
143 S. CEDROS AVENUE, STE B-104 CAMINO DEL MAR - 15TH TO BRIDGE 6 11 MATCHLINE - SEE BELOW LEFT MATCHLINE - SEE ABOVE RIGHT MATCHLINE - SEE SHEET 2 ATTACHMENT B 9 April 7, 2026 Item 14
24TH ST
24TH ST
25TH ST
25TH ST
26TH ST
26TH ST

CAMINO DEL MAR
15 11 7
10 2
12 EXISTING TREES TO
REMAIN

EXISTING TREES TO
REMAIN
13 13
13 10" WIDE MAINTENANCE

STRIP WITH EMBEDDED
COBBLE 9 14 15 9 14 15 8 5 9 6 4 10 3
11 15
14 6 9 5 7
CAMINO DEL MAR 27TH ST 27TH ST 28TH ST
15 15
15 3 3 3 6 8 12 8 1 1 11

EXISTING TREES TO
REMAIN
15 11

BOULDERS
COBBLE

STAMPED INTEGRAL
10" WIDE MAINTENANCE COLOR PAVING

STRIP WITH EMBEDDED
COBBLE

BOULDERS
COBBLE
10 14 5 5
10 9 5 4 6 10 15
13 5 6 14
10 4 6 5
CITY OF DEL MAR City of Del Mar
1050 Camino del Mar, Del Mar, CA 92014
T 858.755-9313 F 858.755-2794
www.delmar.ca.us
MW PELTZ + ASSOCIATES, INC.

LANDSCAPE ARCHITECTURE

URBAN DESIGN
SOLANA BEACH, CALIFORNIA 92078
P: 858.481.0888 F: 858.481.6808
RLA 2010
143 S. CEDROS AVENUE, STE B-104 CAMINO DEL MAR - 15TH TO BRIDGE 622 MATCHLINE - SEE SHEET 1 MATCHLINE - SEE BELOW LEFT MATCHLINE - SEE ABOVE RIGHT MATCHLINE - SEE SHEET 3 ATTACHMENT B 10 April 7, 2026 Item 14
CAMINO DEL MAR 10
3 8 7 9

EXISTING TREES TO
REMAIN
8 9
7 8 13 13

STAMPED INTEGRAL

COLORED CONCRETE
PAVING

STAMPED INTEGRAL

COLORED CONCRETE
PAVING
10" WIDE MAINTENANCE BOULDERS

STRIP WITH EMBEDDED
COBBLE
14 15
9 14 15
5 6 4
15 3
10 5 6 14
15 2 3 6 3 2
CAMINO DEL MAR 23RD ST
22ND ST
7 8
3 9
15 15
2 3

EXISTING TREES TO
REMAIN
13 7
8 12
10" WIDE MAINTENANCE

STRIP WITH EMBEDDED
COBBLE
5 6
10 14 3
12 5
6 14
10 1
4 5 6 9 5 11
CITY OF DEL MAR City of Del Mar
1050 Camino del Mar, Del Mar, CA 92014
T 858.755-9313 F 858.755-2794
www.delmar.ca.us
MW PELTZ + ASSOCIATES, INC.

LANDSCAPE ARCHITECTURE

URBAN DESIGN
SOLANA BEACH, CALIFORNIA 92078
P: 858.481.0888 F: 858.481.6808
RLA 2010
143 S. CEDROS AVENUE, STE B-104 CAMINO DEL MAR - 15TH TO BRIDGE 6 3
3 MATCHLINE - SEE SHEET 2 MATCHLINE - SEE BELOW LEFT MATCHLINE - SEE ABOVE RIGHT MATCHLINE - SEE SHEET 4 ATTACHMENT B 11 April 7, 2026 Item 14
CAMINO DEL MAR 2

STAMPED INTEGRAL
COLOR CONCRETE 3 3 3 3 3 3 3 3 2 2 2 2 2 9 9 6
CITY OF DEL MAR City of Del Mar
1050 Camino del Mar, Del Mar, CA 92014
T 858.755-9313 F 858.755-2794
www.delmar.ca.us
MW PELTZ + ASSOCIATES, INC.

LANDSCAPE ARCHITECTURE

URBAN DESIGN
SOLANA BEACH, CALIFORNIA 92078
P: 858.481.0888 F: 858.481.6808
RLA 2010
143 S. CEDROS AVENUE, STE B-104 CAMINO DEL MAR - 15TH TO BRIDGE 64 MATCHLINE - SEE SHEET 3 MATCHLINE - SEE SHEET 5 4 ATTACHMENT B 12 April 7, 2026 Item 14
10 9 6 8 12 7 11 7 6
4 8 7 5 11

SEA VIEW LN

CAMINO DEL MAR
10" WIDE MAINTENANCE

STRIP WITH EMBEDED
COBBLE

BOULDERS
COBBLE

STAMPED INTEGRAL

COLOR CONCRETE
1 3 15 14 6 5 7
3 3
4 11 9 9
5 10 14
3 12
3 6 14 15 15
11 6 12
7 8
5 8 7
7 9
3 CAMINO DEL MAR DEL MAR L'AUBERGE
15TH ST
10" WIDE MAINTENANCE

STRIP WITH EMBEDED
COBBLE

BOULDERS
COBBLE

STAMPED INTEGRAL

COLOR CONCRETE
15 15
15 3
10 14 9 5 9
9 5
5 9 10 14 10 15
CITY OF DEL MAR City of Del Mar
1050 Camino del Mar, Del Mar, CA 92014
T 858.755-9313 F 858.755-2794
www.delmar.ca.us
MW PELTZ + ASSOCIATES, INC.

LANDSCAPE ARCHITECTURE

URBAN DESIGN
SOLANA BEACH, CALIFORNIA 92078
P: 858.481.0888 F: 858.481.6808
RLA 2010
143 S. CEDROS AVENUE, STE B-104 CAMINO DEL MAR - 15TH TO BRIDGE 6 5 MATCHLINE - SEE ABOVE RIGHT MATCHLINE - SEE SHEET 4 MATCHLINE - SEE BELOW LEFT 5 ATTACHMENT B 13 April 7, 2026 Item 14
CITY OF DEL MAR City of Del Mar
1050 Camino del Mar, Del Mar, CA 92014
T 858.755-9313 F 858.755-2794
www.delmar.ca.us
MW PELTZ + ASSOCIATES, INC.

LANDSCAPE ARCHITECTURE

URBAN DESIGN
SOLANA BEACH, CALIFORNIA 92078
P: 858.481.0888 F: 858.481.6808
RLA 2010
143 S. CEDROS AVENUE, STE B-104 CAMINO DEL MAR - 15TH TO BRIDGE 6 2 3 4 5 6 7
8 9
1 10
6 6
11 12 13
15 14
ATTACHMENT B 14 April 7, 2026 Item 14
1 2
2 1
4 3

EXISTING PINE TREE

TO REMAIN

EXISTING BOULDERS

TO REMAIN

VIA DE LA VALLE

JIMMY DURANTE BLVD
3 7
3 3
7 3
5 6
4 5
6 5
6 4
5 6
8 9

EXISTING PINE TREE

TO REMAIN
1 City of Del Mar
1050 Camino del Mar, Del Mar, CA 92014
T 858.755-9313 F 858.755-2794
www.delmar.ca.us
MW PELTZ + ASSOCIATES, INC.

LANDSCAPE ARCHITECTURE

URBAN DESIGN
SOLANA BEACH, CALIFORNIA 92078
P: 858.481.0888 F: 858.481.6808
RLA 2010
143 S. CEDROS AVENUE, STE B-104 JIMMY DURANTE BLVD TRIANGLE MEDIAN 1 1 2 3
4 5 6
7 8 9
1 1
ATTACHMENT C 15 April 7, 2026 Item 14

JIMMY DURANTE BLVD

EXISTING TORREY

PINE TREE TO
REMAIN

EXISTING TORREY

PINE TREE TO
REMAIN

EXISTING TORREY

PINE TREE TO
REMAIN
9 10 13 14
13 EXISTING BOULDERS

TO REMAIN
10 6 5 7 3 9
11 4 15
13 11 4 15 9 10 8 12 5 6 7 3 13 9 14 8 9 5 6 4 12 3 2

DAVID WAY

JIMMY DURANTE BLVD

EXISTING TORREY

PINE TREE TO
REMAIN
2 6 10 9 5
1 1
3 8
9 10 9 5 6
1 1
7 8
9 14
10 15
13 EXISTING BOULDERS

TO REMAIN
11 4 15
7 5 4 3
6 3
12 7 5 6
8 4
12 3
12 3
5 6
CITY OF DEL MAR City of Del Mar
1050 Camino del Mar, Del Mar, CA 92014
T 858.755-9313 F 858.755-2794
www.delmar.ca.us
MW PELTZ + ASSOCIATES, INC.

LANDSCAPE ARCHITECTURE

URBAN DESIGN
SOLANA BEACH, CALIFORNIA 92078
P: 858.481.0888 F: 858.481.6808
RLA 2010
143 S. CEDROS AVENUE, STE B-104 JIMMY DURANTE BLVD - ROUNDABOUT TO MERGE 2 1
1 MATCHLINE - SEE ABOVE RIGHT MATCHLINE - SEE BELOW LEFT MATCHLINE - SEE SHEET 2 ATTACHMENT D 16 April 7, 2026 Item 14

JIMMY DURANTE BLVD
9 14
10 8
9 3
2 2
3 8
9 10 14 11
9 5
1 EXISTING TORREY

PINE TREE TO
REMAIN

EXISTING BOULDERS

TO REMAIN
13 13
5 6
7 12
4 5 6
7 3
6 7 12
CITY OF DEL MAR City of Del Mar
1050 Camino del Mar, Del Mar, CA 92014
T 858.755-9313 F 858.755-2794
www.delmar.ca.us
MW PELTZ + ASSOCIATES, INC.

LANDSCAPE ARCHITECTURE

URBAN DESIGN
SOLANA BEACH, CALIFORNIA 92078
P: 858.481.0888 F: 858.481.6808
RLA 2010
143 S. CEDROS AVENUE, STE B-104 JIMMY DURANTE BLVD - ROUNDABOUT TO MERGE 2 2 3 4 5 6
9 10 11
1 12
2 2 MATCHLINE - SEE SHEET 1
7 8
13 14 15
ATTACHMENT D 17 April 7, 2026 Item 14
8TH ST WESLEY ST 9TH ST WESLEY ST

CAMINO DEL MAR
7 5

EXISTING TREES TO REMAIN
9 2
2 1 2
1 14

STAMPED AND COLORED

CONCRETE PAVING

RANDOM STONE PATTERN

DESERT STONE COLOR

DECORATIVE

BOULDERS
6" WIDE MAINTENANCE STRIP

EMBEDDED COBBLE IN

COLORED CONCRETE
13 3 5 4
6 4
10 7 14 7 2 14

WESLEY STWESLEY ST

LA AMATISTA RDLA AMATISTA RD

CAMINO DEL MAR
1 13
6 7
7 4 14

EXISTING TREES TO REMAIN
2 4

STAMPED AND COLORED

CONCRETE PAVING

RANDOM STONE PATTERN

DESERT STONE COLOR

DECORATIVE

BOULDERS
6" WIDE MAINTENANCE STRIP

EMBEDDED COBBLE IN

COLORED CONCRETE
1 2 1 2
14 12 5 8 4 8
10 10 10 5 3 1
CITY OF DEL MAR City of Del Mar
1050 Camino del Mar, Del Mar, CA 92014
T 858.755-9313 F 858.755-2794
www.delmar.ca.us
MW PELTZ + ASSOCIATES, INC.

LANDSCAPE ARCHITECTURE

URBAN DESIGN
SOLANA BEACH, CALIFORNIA 92078
P: 858.481.0888 F: 858.481.6808
RLA 2010
143 S. CEDROS AVENUE, STE B-104 CAMINO DEL MAR - 4TH TO 9TH 2 1
1 MATCHLINE - SEE BELOW LEFT MATCHLINE - SEE ABOVE RIGHT LIMIT OF WORK MATCHLINE - SEE SHEET 2 ATTACHMENT E 18 April 7, 2026 Item 14

EL AMIGO RD

LA AMATISTA RDLA AMATISTA RD

CAMINO DEL MAR
14 13
11 8
12 EXISTING TREES TO REMAIN
10 4 2

STAMPED AND COLORED

CONCRETE PAVING

RANDOM STONE PATTERN

DESERT STONE COLOR

DECORATIVE

BOULDERS
6" WIDE MAINTENANCE STRIP

EMBEDDED COBBLE IN

COLORED CONCRETE
12 5 4 4 6
11 10 6 8 5 10 8 5
13 14 1 1 1 4TH STREET DEL MAR HEIGHTS RD

CAMINO DEL MAR

STAMPED AND COLORED

CONCRETE PAVING

RANDOM STONE PATTERN
DESERT STONE COLOR 1 2 1 2
CITY OF DEL MAR City of Del Mar
1050 Camino del Mar, Del Mar, CA 92014
T 858.755-9313 F 858.755-2794
www.delmar.ca.us
MW PELTZ + ASSOCIATES, INC.

LANDSCAPE ARCHITECTURE

URBAN DESIGN
SOLANA BEACH, CALIFORNIA 92078
P: 858.481.0888 F: 858.481.6808
RLA 2010
143 S. CEDROS AVENUE, STE B-104 CAMINO DEL MAR - 4TH TO 9TH 2 1 2 3 4 5 6 7 8 22 MATCHLINE - SEE BELOW LEFT MATCHLINE - SEE ABOVE RIGHT LIMIT OF WORK MATCHLINE - SEE SHEET 1 9 11 12 13 14
10 ATTACHMENT E 19 April 7, 2026 Item 14

DEL MAR STREETSCAPES PLANT LIST
TREES Size
Rhaphiolepis indica ‘Majestic Beauty Indian Hawthorn (Tree Form) 20’H x 15’S Prunus caroliniana Carolina Laurel Cherry 30’H x 20’S
Pittosporum tenuifolia Kohuhu 25’H x 12’S
SHRUBS/GROUNDCOVERS Height
Aeonium ‘Kiwi’ Kiwi Aeonium 2’
Aeonium ‘Zwartkop’ Black Rose Aeonium 3’-4’
Agave attenuata Foxtail Agave 4’-7’
Agave ‘Blue Glow’ Blue Glow Agave 2’-3’
Agave ‘Red Margin’ Red Margin Agave 2’
Aloe ‘Crosby’s Prolific’ Crosby’s Prolific 1’
Aloe ‘Grassy Lassie’ Grassy Lassie Aloe 1’
Aloe striata Coral Aloe 1’-2’
Calandrinia grandiflora Rock Purslane 1’-3’
Carissa macrocarpa ‘Green Carpet’ Dwarf Natal Plum 1’-2’ Cotyledon orbiculata Round-Leafed Navel-wort 1’-2’
Dianella tasmanica Variegated Flax Lily 2’
Euphorbia tirucalli Sticks On Fire 4’-8’
Grevillea lanigera ‘Coastal Gem’ Wooly Grevillea 1’
Othonna cheirifolia Barbary Ragwort 1’
Plectranthus neochilus Mike’s Fuzzy Wuzzy 1’-2’
Senecio mandraliscae Blue Chalk Sticks 1’-3’
Senecio vitalis Narrow-Leaf Chalk Sticks 2’
ATTACHMENT F 20 April 7, 2026 Item 14

MAJOR ARTERIAL MEDIANS
CONCEPTUAL PROJECT COST ESTIMATE 4/7/2026
Pre-Construction Costs
Conceptual Design $ 15,000
Final Design $ 120,600
Subtotal $ 135,600
Construction Costs
CDM - 15th St to San Dieguito River1 $ 787,163
JDB/VDLV Triangle1 $ 119,122
JDB - Roundabout to Merge1 $ 266,473
CDM - 4th St to 9th St1 $ 249,798
Construction Management and Support Services2 $ 213,383 Subtotal $ 1,635,939
PROJECT ESTIMATE (2025) $ 1,771,539
Project Contingency3
$ 177,154
PROJECT ESTIMATE W/ CONTINGENCY (2026) $ 1,948,693

1. MW Peltz provided the construction cost estimates based on the conceptual designs

2. Preliminarily estimated as 15% of construction cost estimate

3. Include to account for unanticipated costs during design and construction.

ATTACHMENT G 21 April 7, 2026 Item 14
15th Street to Bridge - Del Mar $787,163
Landscape Construction Cost Estimate August 25, 2025
Description Quantity Unit Unit Cost Extended Cost
DEMOLITION:

Clearing and Grubbing 25106 SF 0.55 $13,808.30
DEMOLITION SUBTOTAL $13,808.30
HARDSCAPE:

Colored and stamped concrete 3832 SF 25.00 $95,800.00
Colored and embedded cobble maint strip 5243 SF 30.00 $157,290.00 HARDSCAPE SUBTOTAL $280,706.60
GRADING:
fine grading 25106 SF 0.50 $12,553.00
soil prep. 25106 SF 0.83 $20,837.98
weed prep. 25106 SF 0.40 $10,042.40
bark mulch 25106 SF 0.75 $18,829.50
IRRIGATION:
controller 1 EA 20,000.00 $20,000.00
backflow, valves, pipe, tubing, wire 25106 SF 6.50 $163,189.00 PLANTING:
boulders 1 ALW 10,000.00 $10,000.00
shrubs 25106 SF 6.00 $150,636.00
MAINTENANCE:
90-day maintenance 3 MO 5,000.00 $15,000.00
LANDSCAPING SUBTOTAL $421,087.88
LANDSCAPE SUBTOTAL $715,602.78
10% CONTINGENCY $71,560.28
TOTAL $787,163.06
4th Street to 9th Street, Del Mar
Concept Probable Cost
ATTACHMENT G 22 April 7, 2026 Item 14
JDB Triangle - Del Mar $119,122
Landscape Construction Cost Estimate August 25, 2025
Description Quantity Unit Unit Cost Extended Cost

DEMOLITION
Clearing and Grubbing 4977 SF 0.55 $2,737.35
GRADING:
fine grading 4977 SF 0.50 $2,488.50
soil prep. 4977 SF 0.83 $4,130.91
weed prep. 4977 SF 0.40 $1,990.80
bark mulch 4977 SF 0.75 $3,732.75
IRRIGATION:
controller 1 EA 20,000.00 $20,000.00
backflow, valves, pipe, tubing, wire 4977 SF 6.50 $32,350.50 PLANTING:
boulders and cobble 1 ALW 5,000.00 $5,000.00
shrubs 4977 SF 6.00 $29,862.00
MAINTENANCE:
90-day maintenance 3 MO 2,000.00 $6,000.00
LANDSCAPE SUBTOTAL $108,292.81
10% CONTINGENCY $10,829.28
TOTAL $119,122.09
4th Street to 9th Street, Del Mar
Concept Probable Cost
ATTACHMENT G 23 April 7, 2026 Item 14
JDB Roundabout to Merge - Del Mar $266,473
Landscape Construction Cost Estimate August 25, 2025
Description Quantity Unit Unit Cost Extended Cost
DEMOLITION:

Clearing and Grubbing 12542 SF 0.55 $6,898.10
DEMOLITION SUBTOTAL $6,898.10
HARDSCAPE:

Colored and stamped concrete 107 SF 25.00 $2,675.00
HARDSCAPE SUBTOTAL $16,471.20
GRADING:
fine grading 12542 SF 0.50 $6,271.00
soil prep. 12542 SF 0.83 $10,409.86
weed prep. 12542 SF 0.40 $5,016.80
bark mulch 12542 SF 0.75 $9,406.50
IRRIGATION:
controller 1 EA 20,000.00 $20,000.00
backflow, valves, pipe, tubing, wire 12542 SF 6.50 $81,523.00 PLANTING:
boulders 1 ALW 5,000.00 $5,000.00
shrubs 12542 SF 6.00 $75,252.00
MAINTENANCE:
90-day maintenance 3 MO 2,000.00 $6,000.00
LANDSCAPING SUBTOTAL $218,879.16
LANDSCAPE SUBTOTAL $242,248.46
10% CONTINGENCY $24,224.85
TOTAL $266,473.31
4th Street to 9th Street, Del Mar
Concept Probable Cost
ATTACHMENT G 24 April 7, 2026 Item 14
4th Street to 9th Street - Del Mar $249,798
Landscape Construction Cost Estimate August 25, 2025
Description Quantity Unit Unit Cost Extended Cost
DEMOLITION:

Clearing and Grubbing 8300 SF 0.55 $4,565.00
DEMOLITION SUBTOTAL $4,565.00
HARDSCAPE:

Colored and stamped concrete 1574 SF 25.00 $39,350.00
Colored and embedded cobble maintenance 928 SF 30.00 $27,840.00 HARDSCAPE SUBTOTAL $67,190.00
GRADING:
fine grading 8300 SF 0.50 $4,150.00
soil prep. 8300 SF 0.83 $6,889.00
weed prep. 8300 SF 0.40 $3,320.00
bark mulch 8300 SF 0.75 $6,225.00
IRRIGATION:
controller 1 EA 20,000.00 $20,000.00
backflow, valves, pipe, tubing, wire 8300 SF 6.50 $53,950.00 PLANTING:
boulders 1 ALLW 5,000.00 $5,000.00
shrubs 8300 SF 6.00 $49,800.00
MAINTENANCE:
90-day maintenance 3 MO 2,000.00 $6,000.00
LANDSCAPING SUBTOTAL $155,334.00
LANDSCAPE SUBTOTAL $227,089.00
10% CONTINGENCY $22,708.90
TOTAL $249,797.90
4th Street to 9th Street, Del Mar
Concept Probable Cost
ATTACHMENT G 25 April 7, 2026 Item 14
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:

TO: Honorable City Councilmembers
FROM: Mayor Tracy Martinez and Deputy Mayor/Finance Committee Liaison John Spelich DATE: April 7, 2026
SUBJECT: Reconsideration of Additional Pension Fund Transfer for FY 2025-26 REQUESTED ACTION/RECOMMENDATION:

Mayor Martinez and Deputy Mayor/Finance Committee Liaison Spelich request that the City Council approve an additional transfer of $425,000 to the Pension Reserve Fund, as previously recommended by City staff and the Finance Committee, in Fiscal Year (FY) 2025-26.

BACKGROUND:

Separate from the City’s annual CalPERS payment, the City additionally sets aside funds annually in the City’s Pension Reserve Fund, which are then transferred into a Section 115 Trust that was established by the City in 2024. Funds deposited into the Section 115 Trust can only be used for pension related purposes.

The City’s Section 115 Trust currently has a balance of approximately $4.98 million, plus there is an additional combined $1.9 million in the Water and Wastewater Pension Reserve Fund.

The City’s Pension Reserve Policy (Attachment A) was adopted by the City Council on May 31, 2023, as recommended by the City’s Finance Committee, and includes the following key provisions:
• Continue to work toward the goal of reaching 100% funded status by June 30, 2032; • Flexibility for the funding timeline to be extended by the Council when deemed necessary; • Focus on funding the Governmental Fund portion of the unfunded liability (not the Water, Clean Water and Wastewater Funds);
• Use of the Annual Comprehensive Financial Report (ACFR) to calculate the following year’s Pension Reserve contribution;
• Re-evaluate Pension Reserve contribution at Mid-Year when previous year’s final results are presented; and
1 April 7, 2026 Item 15
City Council Agenda Report
Additional FY 2025-26 Pension Reserve Transfer
April 7, 2026

Page 2 of 2 ends

• Establish a Section 115 Trust Fund using Pension Reserve Funds.

DISCUSSION/ANALYSIS:

When the current two-year budget was adopted on June 16, 2025, the Pension Transfer amount was recommended to be $250,000, in order to maintain a General Fund Contingency of 21.33%.

On March 3, 2026, as part of the Midyear Budget Process, the City Council was asked to consider an additional Pension Transfer amount of $425,00, which is consistent with the Pension Reserve Policy and was based on revenues coming in higher than expected during the first half of FY 2025-26. The proposed Midyear adjustments, including the additional pension transfer, were reviewed by the Finance Committee on February 18, 2026, and unanimously recommended by the Committee for Council approval.

The Council was split 2-2, with Councilmembers Dan Quirk and Terry Gaasterland opposed, on whether to proceed with the recommended additional pension fund transfer and requested that staff to work with the Finance Committee to review the current Pension Reserve Policy and determine whether any changes to the Policy are recommended.

However, upon further review of the Pension Reserve Policy and Finance Committee recommendations related to the establishment of the policy and Pension Fund transfers, the Councilmembers initiating this agenda item feel that further review by the Finance Committee is unwarranted, and the Committee’s recommendation to transfer additional funds into the Pension Reserve in accordance with the existing policy should be approved. If Councilmember’s Quirk and Gaasterland wish to make changes to the Pension Reserve Policy, they should bring those forward as a Council initiated agenda item.

If the guidelines in the Pension Reserve Policy had been strictly applied, the City’s FY 2025-26 Pension Reserve Fund transfer would have been approximately $1,100,000. To date, the Council has only authorized a transfer of $250,000. Considering the higher than anticipated revenues during the first half of FY 2025-26, the Councilmembers initiating this agenda item request that the Council reconsider the prior recommendation to transfer an additional $425,000 to the Pension Reserve Fund, bringing the total contribution for FY 2025-26 to $675,000. This is slightly higher than half of the transfer amount prescribed by the current Pension Reserve Policy.

FISCAL IMPACT:

Approval of this item will amend the Fiscal Year 2025-2026 Operating and Capital Budget to include the transfer an additional $425,000 to the Pension Reserve Fund, for a total fiscal year contribution of $675,000.

ENVIRONMENTAL IMPACT:

ATTACHMENTS:

Attachment A – Pension Reserve Policy
Attachment B – 3/18/2024 City Council Agenda Report for Establishment of Section 115 Trust for Pension Purpose
2 April 7, 2026 Item 15

CITY OF DEL MAR

PENSION RESERVE POLICY
The following is the Pension Reserve Policy adopted by the Del Mar City Council on May 31, 2023.

1. Continue working toward the goal of reaching 100% funded status, based on the City’s financial statements according to GASB 68 by June 30, 2032, with the flexibility that the timeline can be extended further by the Council in order to not impact the City’s ability to fund other critical/necessary projects as initially directed by the City Council on September 3, 2013, as part of the creation of the City’s Pension Reserve Fund.

2. Focus on funding the Governmental Fund portion of the unfunded liability and not the 20% portion related to Enterprise fund salaries. In order to not substantially impact Water and Wastewater rates, Enterprise funds will establish a reserve that will not exceed $200,000 in each fund and will continue to pay its annual required contribution related to Enterprise salaries. The remaining unfunded liability portion related to Enterprise salary/benefits will not be covered by the Pension Reserve Fund in the General Fund.

3. Using the reported unfunded liability amount in the most recent completed Annual Comprehensive Financial Report (ACFR), staff will calculate the remaining unfunded liability and equally divide the unfunded liability balance by the remaining years to determine the following year’s contribution. This process will be evaluated each year and reviewed by the Pension Subcommittee of the Finance Committee to determine the recommended annual contribution.
a. Based on the June 30, 2022 ACFR, the current unfunded liability is approximately $8.35 million. The portion related to Governmental Fund salary/benefits is approximately $6.68 million and the current pension reserve balance is $3.4 million. If the proposed updated reserve policy is approved, the recommended pension contribution for FY 2024 will be $360,000.
b. At Midyear, after prior year financial results and ACFR are presented to the City Council, if surplus is reported, determine next year’s pension contribution and make an additional transfer to help minimize large contribution fluctuations largely caused by CalPERS not meeting its investment targets for the year.

4. All pension reserve funds currently held with the City will be considered to be transferred to a Section 115 Trust account once the City Council authorizes staff to open an account. Funds in the Section 115 Trust can only be legally used for pension related costs.
3 April 7, 2026 Item 15
Pension Reserve Policy

Page 2 of 2 ends

a. If at any time, the City is faced with an economic crisis, the City Council may consider deferral of a pension transfer to the Section 115 Trust and may also use funds in the Trust account to pay for the current annual required contribution payment to CalPERS.

5. Once the Pension Reserve reaches 100% status, the City will stop making annual contributions to the Section 115 Trust account but continue to review the ACFR and make annual contributions as necessary to maintain as close to 100% funded status as possible.

6. If and when the Section 115 Trust balance in combination with assets held by CalPERS, reach 100% funded status and remains or exceeds 100% funded status for two consecutive years, on the third year, staff may recommend to the City Council to use excess funds to pay current annual required contribution payments with funds held in the Section 115 Trust account.
4 April 7, 2026 Item 15
City of Del Mar
Agenda Report
TO: Honorable Mayor and City Council Members
FROM: Monica Molina, Finance Manager/Treasurer
Ashley Jones, City Manager
DATE: March 18, 2024
SUBJECT: Establishment of a Section 115 Trust for Pension Related Purposes REQUESTED ACTION/RECOMMENDATION:

Staff recommends that the City Council: 1) Approve an agreement with Public Agency Retirement Services (PARS) for Section 115 Trust administration services (Attachment A); 2) Adopt a Resolution approving the adoption of the Public Agencies Post-Employment Benefits Trust for the purpose of prefunding pension obligations (Attachment B); 3) Authorize the City Manager or their designee to act as the City’s Plan Administrator of the Trust Program and execute the agreement and required documents; and 4) Authorize the initial transfer of $5 million from the Pension Reserve Fund to the Section 115 Trust Account.

EXECUTIVE SUMMARY:

The City of Del Mar is a member of the California Public Employees’ Retirement System (CalPERS), in which all of the City’s full-time employees are participating members. The City’s current annual contribution to CalPERS for pension obligations is approximately $1.86 million, with $660,000 going toward the City’s current pension costs, and $1,200,000 to fund the City’s unfunded pension liability. The most recent valuation report provided by CalPERS in July 2023, shows a current total unfunded liability for Del Mar of $18.3 million as of June 30, 2022. To ensure sufficient funds are available to cover the City’s current and ongoing pension obligations, the City sets aside funds annually in the City’s Pension Reserve Fund, which currently has a balance of $3.4 million, plus an additional combined $1.6 million in the Water and Wastewater Pension Reserve Fund.

The unfunded pension obligation represents a significant liability to the City. As of 2015, Governmental Accounting Standards Board (GASB) Statements required cities to recognize pension obligation liabilities on their balance sheet. To address funding of the pension liability, staff, Pension Subcommittee of the Finance Committee and the Finance Committee had several meetings to discuss establishing a Section 115 Trust and the Subcommittee and staff met with CalPERS (PERS) and Public Agency Retirements Services (PARS) regarding their programs. As a result of this work, the Finance Committee, Pension Subcommittee and staff are recommending establishing a Section 115 Trust with PARS to administer the trust.

BACKGROUND:

Starting in 2017, City staff and the Finance Committee’s Pension Subcommittee began evaluating options for the City to establish a Section 115 Trust for pension funding purposes. As part of that effort, the City solicited proposals from qualified firms, and staff and the Pension Subcommittee interviewed representatives from PERS and PARS in February 2020, to learn more about their 115 Trust options. This effort was put on hold in 2020 due to the pandemic and was restarted in 2023 in conjunction with the Pension Subcommittee and Finance Committee. 1 March 18, 2024 Item 09 5 April 7, 2026 Item 15
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Establish Section 115 Trust
March 18, 2024

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On May 31, 2023, during the Council Budget Workshop, staff presented the City Council with a proposed Pension Reserve Policy (Policy) that was supported by the City’s Finance Committee for adoption. In summary, the Policy (Attachment C) includes the following provisions:
 Continue to work toward the goal of reaching 100% funded status by June 30, 2032,  Flexibility for the funding timeline to be extended by the Council when deemed necessary,  Focus on funding the Governmental Fund portion of the unfunded liability (not the Water, Clean Water and Wastewater Funds),
 Use of the Annual Comprehensive Financial Report (ACFR) to calculate the following year’s Pension Reserve contribution,
 Re-evaluate Pension Reserve contribution at Mid-Year when previous year’s final results are presented,
 Establish a Section 115 Trust Fund using Pension Reserve Funds.

The Council adopted the proposed Pension Reserve Policy but deferred establishment of a 115 Trust, requesting that staff and the Pension Subcommittee return to Council at a future meeting to provide more information about the 115 Trust and basis for the recommendation to establish the trust for pension purposes.

In November 2023, staff and the Pension Subcommittee met again with PERS and PARS for an update on their respective 115 Trust programs. After meeting with both firms, staff and the Pension Subcommittee provided a presentation to the Finance Committee on January 23, 2024, recommending that the City proceed with establishing a Section 115 Trust with PARS, which was unanimously supported by the Finance Committee.

DISCUSSION/ANALYSIS
Reporting Pension Liability
The Governmental Accounting Standards Board (GASB) is an independent private-sector organization that establishes accounting and financial reporting standards for U.S. state and local governments that follow Generally Accepted Accounting Principles (GAAP). GASB Statement 68 requires that governmental employers that sponsor Defined Benefit plans recognize a net pension liability (unfunded accrued liability) on their balance sheet. This liability is the difference between the City’s total pension liability (actuarial accrued liability) and the market value of actual plan assets. The City reported this actuarial liability for the first time in its June 30, 2015, Annual Comprehensive Financial Report (ACFR) and the current unfunded liability totals $18.3 million as of June 30, 2022.

As can be seen in Chart A below, the pension liability continues to grow each year, raising concerns about the anticipated growth of the unfunded accrued liability (UAL) over time and potential impacts to the annual required contributions (Chart B). As noted on Chart A, one of the largest drivers of the increase in UAL is the underperformance of PERS target investment returns.

Based on the 7-year average actual rate of return of 6.7%, instead of target rate of 6.8%, the City’s UAL increased by $6.8 million between 2016 and 2022. Although the PERS actuarial report for June 30, 2023, are not yet available, it is anticipated that the UAL will increase again since PERS investment returns came in at 5.8%, which is 1% lower than its target return of 6.8%. 2 March 18, 2024 Item 09 6 April 7, 2026 Item 15
City Council Agenda Report
Establish Section 115 Trust
March 18, 2024

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Chart A: Actuarial Pension Liability
Pension Reserve Fund
On September 3, 2013, the City Council approved the creation of a Pension Reserve Fund with the goal of fully funding the City’s UAL in 15 years, while maintaining flexibility in annual contributions to ensure funding remained available for other necessary City activities and projects.

Due to the extreme loss in revenue related to the pandemic, contributions to the Pension Reserve were deferred from April 2020 to March 2023, when revenues returned to pre-pandemic levels.

The Pension Reserve balance as of June 30, 2023, is at approximately $5 million, which is the combined total of the General Fund and Water/Wastewater Fund Pension Reserves.

Although designated for payment of the City’s pension liability, the City’s Pension Reserve funds are not legally restricted and can be used for any purpose with City Council approval. In order to formally limit use of the funds for pension purposes only, the funds must be deposited in an irrevocable trust. Funds currently held in the Pension Reserve Fund are also not allowed to be reported as a reduction to the pension liability on the balance sheet unless the funds are held in a Section 115 Trust or deposited directly to PERS.

Managing Unfunded Liabilities
As shown in Chart B below, the unfunded liability portion of the annual required pension contribution continues to grow and will impact available funding for critical operational needs and capital and special projects if not addressed. Setting up a Section 115 Trust not only secures future pension benefits for employees, but also reduces the potential of having to reduce funding of other important City activities to pay for the annual required pension liability. To reduce the net pension liability, the City’s only prior option was to send additional funds to PERS (in excess of its annual required contributions). However, there have been concerns about doing so based on PERS underperformance and the need to diversify management and oversight of the City’s pension funds outside of PERS. Establishing a Section 115 Trust would allow the City to “pre- $11.5 $11.6
$13.4 $14.2 $15.5
$10.8 $18.3
‐10%
‐5%
0%
5%
10%
15%
20%
25%
$‐
$10
$20
$30
$40
$50
$60
$70
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022
Millions
Actuarial Pension Liability
Market Value of Assets Unfunded Accrued Liability Investment Returns Target Returns 3 March 18, 2024 Item 09 7 April 7, 2026 Item 15
City Council Agenda Report
Establish Section 115 Trust
March 18, 2024

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fund” its PERS unfunded liability and will allow for greater local control over assets invested by a professional fund management team selected and monitored by the City.

Chart B: Annual Pension Contribution
In effort to help public agencies address and manage their pension liabilities, PERS and PARS have developed Post-Employment Benefits Trust Programs, which provide program participants the ability to pre-fund pension liabilities through an IRS reviewed program. These programs are established as multiple employer trusts so that public agencies, regardless of size, can join the program to receive the necessary economies of scale to keep administrative fees low and avoid any setup costs. To participate, funds must be set aside in an exclusive benefit, irrevocable trust that cannot be accessed by creditors or used for other purposes. If established, the trust would permit the City, under federal and state law, to invest in a more diversified array of investments to maximize returns in comparison to what the City’s investment options are if the funds were to continue to be held in the City’s Pension Reserve and invested in accordance with the City’s investment policy and restrictions on general fund investments.

Public Agency Retirement Services (PARS)
To date, 145 public agencies in California have adopted the PARS pension trust program, which includes ten public agencies in San Diego, among them being the cities of Carlsbad, Coronado, Solana Beach, and Imperial Beach. Expected benefits offered by the PARS 115 Trust include:

 Investment flexibility with Section 115 Trust compared to restrictions on general fund investments (Govt. Code 53216),
 Increased risk diversification of plan assets through different asset management options,  City oversight and control of fund management selection, monitoring of performance and ability to modify fund management based on performance criteria,  Flexibility on use of trust assets (i.e., trust assets can be accessed at any time as long as the assets are used to fund the City pension obligations and defray reasonable expenses), $‐
$0.5
$1.0
$1.5
$2.0
$2.5
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Millions
Annual Pension Contribution
Normal Contribution Unfunded Liability Employee Contribution 4 March 18, 2024 Item 09 8 April 7, 2026 Item 15
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March 18, 2024

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 Potential for positive rating agency and investor consideration.

PARS has two investment options available for their Section 115 Trust account through PFM Asset Management (PFMAM). One option is a Full-Service Platform, which will provide a dedicated portfolio manager, investment guidance, annual meeting attendance, and creation of investment guidelines required when setting up a Section 115 Trust. The second option is their Target Index Investment Platform which has four (4) pre-established investment options. All the plan assets in the Target Index Investment Platform are combined for economies of scale, but there is no cross sharing of earnings or liabilities. Strategies are comprised of index-based, mutual funds selected for their low expense ratio.

PFMAM has provided investment management services to public agencies nationwide for more than 35 years and are focused on continually finding investment solutions for new and developing financial issues facing public agencies. PFMAM has an excellent reputation among California public agencies, and they have an existing working relationship with PARS where they serve as investment advisor for more than 500 PARS clients with more than $6 billion under management.

PFMAM has a team of extremely capable, experienced investment professionals that oversee plan investment. As a subsidiary of U.S. Bank, PFMAM investment management fees are low, while providing multiple strategy/benchmark options for the City’s investment portfolio.

California Employers’ Pension Prefunding Trust (CEPPT) Fund In comparison to PARS, PERS offers the California Employers’ Pension Prefunding Trust (CEPPT) Fund as a Section 115 Trust fund dedicated to prefunding employer contributions to defined benefit pension systems for eligible California public agencies. Since its launch in 2019, more than 75 California public employers have chosen CEPPT as their pension contribution prefunding trust fund. Based on PERS website, one (1) agency in San Diego participates in the CEEPT fund.

The CEPPT provides an uncomplicated, low-cost investment and administration program.

CEPPT offers two diversified asset allocation strategies. These strategies invest in four (4) public asset classes: Fixed Income; Global Equity; Global Public Real Estate Investment Trusts (REITs); and Treasury Inflation Protected Securities (TIPS). PERS offers participants the choice of one of two investment strategies. Projected risk levels among strategies vary depending upon the target asset class allocations. Generally, equities carry more risk than fixed income securities.

Included in this report, as Attachment D, are comparative tables that were used by the Pension Subcommittee and staff to evaluate asset class target allocations (Table A), investment returns (Table B), and administrative and management fees (Table C) for the Trust programs offered by PARS and PERS. For comparative purposes included in those tables, if available, are the data for the Public Employees’ Retirement Fund (PERF), which are the current pension assets held and managed by PERS.

Recommendation
Based on PARS positive reputation and investment management results, the ability to diversify pension reserve funds in a separate investment firm (rather than maintaining all funds in PERS), and the comparatively low management fees, staff, the City’s Finance Committee, and the Pension Subcommittee are recommending Council approval to establish a Section 115 Trust with PARS Target Index Platform and make an initial deposit of $5 million to the Trust. 5 March 18, 2024 Item 09 9 April 7, 2026 Item 15
City Council Agenda Report
Establish Section 115 Trust
March 18, 2024

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NEXUS TO CITY COUNCIL GOALS AND PRIORITIES:

This item is operational in nature and is not directly related to the City Council’s list of Goals and Priorities.

FISCAL IMPACT:

Approval of staff’s recommendation will result in an initial deposit of $5 million to a Section 115 Trust. Total combined administrative, trustee and investment management fees for PARS, US Bank and PFM Asset Management start at 0.371% of assets. Investment management fees are tiered and will become lower as assets in the program increase. The current annual fee for the initial $5 million deposit, would be approximately $18,500. Funds for trust services fees are available in the approved Year 2023-24 Operating and Capital Budget. Investment/management fees for the upcoming year will be added to the Fiscal Year 2024-25 Budget Update and will be offset by the increase in investment income.

ENVIRONMENTAL IMPACT:

ATTACHMENTS
Attachment A – Agreement for Administrative Services with Public Agency Retirement Services (PARS)
Attachment B – Resolution Approving the Adoption of the Public Agencies PostEmployment Benefits Trust Administered by Public Agency Retirement Services (PARS)
Attachment C – Pension Reserve Policy
Attachment D - Comparative Investment Plan Tables
6 March 18, 2024 Item 09 10 April 7, 2026 Item 15

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AGREEMENT FOR ADMINISTRATIVE SERVICES
This agreement (“Agreement”) is made this _____ day of _____________, 2024, between Phase II Systems, a corporation organized and existing under the laws of the State of California, doing business as Public Agency Retirement Services and PARS (hereinafter “PARS”) and the City of Del Mar (“Agency”).

WHEREAS, the Agency has adopted the PARS Public Agencies Post-Employment Benefits Trust for the purpose of pre-funding pension obligations and/or Other Post-Employment Benefits (“OPEB”) obligations (“Plan”) and is desirous of retaining PARS as Trust Administrator to the Trust, to provide administrative services.

NOW THEREFORE, the parties agree:

1. Services. PARS will provide the services pertaining to the Plan as described in the exhibit attached hereto as “Exhibit 1A” (“Services”) in a timely manner, subject to the further provisions of this Agreement.

2. Fees for Services. PARS will be compensated for performance of the Services as described in the exhibit attached hereto as “Exhibit 1B”.

3. Payment Terms. Payment for the Services will be remitted directly from Plan assets unless the Agency chooses to make payment directly to PARS. In the event that the Agency chooses to make payment directly to PARS, it shall be the responsibility of the Agency to remit payment directly to PARS based upon an invoice prepared by PARS and delivered to the Agency. If payment is not received by PARS within thirty (30) days of the invoice delivery date, the balance due shall bear interest at the rate of 1.5% per month. If payment is not received from the Agency within sixty (60) days of the invoice delivery date, payment plus accrued interest will be remitted directly from Plan assets, unless PARS has previously received written communication disputing the subject invoice that is signed by a duly authorized representative of the Agency.

4. Fees for Services Beyond Scope. Fees for services beyond those specified in this Agreement will be billed to the Agency at the rates indicated in the PARS’ standard fee schedule in effect at the time the services are provided and shall be payable as described in Section 3 of this Agreement. Before any such services are performed, PARS will provide the Agency with a detailed description of the services, terms, and applicable rates for such services. Such services, terms, and applicable rates shall be agreed upon in writing and executed by both parties.

5. Information Furnished to PARS. PARS will provide the Services contingent upon the Agency providing PARS the information specified in the exhibit attached hereto as “Exhibit 1C” (“Data”). It shall be the responsibility of the Agency to certify the accuracy, content, and completeness of the Data so that PARS may rely on such information without further audit. It shall further be the responsibility of the Agency to deliver the Data to PARS in such a manner that allows for a reasonable amount of time for the Services to be performed. Unless specified in Exhibit 1A, PARS shall be under no duty to question Data received from the Agency, to compute contributions made to the 7 March 18, 2024 Item 09 11 April 7, 2026 Item 15

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Plan, to determine or inquire whether contributions are adequate to meet and discharge liabilities under the Plan, or to determine or inquire whether contributions made to the Plan are in compliance with the Plan or applicable law. In addition, PARS shall not be liable for nonperformance of Services to the extent such nonperformance is caused by or results from erroneous and/or late delivery of Data from the Agency. In the event that the Agency fails to provide Data in a complete, accurate and timely manner and pursuant to the specifications in Exhibit 1C, PARS reserves the right, notwithstanding the further provisions of this Agreement, to terminate this Agreement upon no less than ninety (90) days written notice to the Agency.

6. Records. Throughout the duration of this Agreement, and for a period of five (5) years after termination of this Agreement, PARS shall provide duly authorized representatives of Agency access to all records and material relating to calculation of PARS’ fees under this Agreement. Such access shall include the right to inspect, audit and reproduce such records and material and to verify reports furnished in compliance with the provisions of this Agreement. All information so obtained shall be accorded confidential treatment as provided under applicable law.

7. Confidentiality. Without the Agency’s consent, PARS shall not disclose any information relating to the Plan except to duly authorized officials of the Agency, subject to applicable law, and to parties retained by PARS to perform specific services within this Agreement. The Agency shall not disclose any information relating to the Plan to individuals not employed by the Agency without the prior written consent of PARS, except as such disclosures may be required by applicable law.

8. Independent Contractor. PARS is and at all times hereunder shall be an independent contractor. As such, neither the Agency nor any of its officers, employees or agents shall have the power to control the conduct of PARS, its officers, employees, or agents, except as specifically set forth and provided for herein. PARS shall pay all wages, salaries, and other amounts due its employees in connection with this Agreement and shall be responsible for all reports and obligations respecting them, such as social security, income tax withholding, unemployment compensation, workers’ compensation, and similar matters.

9. Indemnification. PARS and Agency hereby indemnify each other and hold the other harmless, including their respective officers, directors, and employees, from any claim, loss, demand, liability, or expense, including reasonable attorneys’ fees and costs, incurred by the other as a consequence of, to the extent, PARS’ or Agency’s, as the case may be, negligent acts, errors or omissions with respect to the performance of their respective duties hereunder.

10. Compliance with Applicable Law. The Agency shall observe and comply with federal, state, and local laws in effect when this Agreement is executed, or which may come into effect during the term of this Agreement, regarding the administration of the Plan.

PARS shall observe and comply with federal, state, and local laws in effect when this Agreement is executed, or which may come into effect during the term of this Agreement, regarding Plan administrative services provided under this Agreement. 8 March 18, 2024 Item 09 12 April 7, 2026 Item 15

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11. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. In the event any party institutes legal proceedings to enforce or interpret this Agreement, venue and jurisdiction shall be in any state court of competent jurisdiction.

12. Force Majeure. When a party’s nonperformance hereunder was beyond the control and not due to the fault of the party not performing, a party shall be excused from performing its obligations under this Agreement during the time and to the extent that its performance is prevented by such cause. Such cause shall include, but not be limited to:
any incidence of fire, flood, acts of God or unanticipated communicable disease, acts of terrorism or war commandeering of material, products, plants or facilities by the federal, state or local government, a material act or omission by the other party or any law, ordinance, rule, guidance or recommendation by the federal, state or local government, or any agency thereof, which becomes effective after the date of this Agreement that delays or renders impractical either party’s performance under the Agreement.

13. Ownership of Reports and Documents. The originals of all letters, documents, reports, and data produced for the purposes of this Agreement shall be delivered to and become the property of the Agency. Copies may be made for PARS but shall not be furnished to others without written authorization from Agency.

14. Designees. The Plan Administrator of the Agency, or their designee, shall have the authority to act for and exercise any of the rights of the Agency as set forth in this Agreement, subsequent to and in accordance with the written authority granted by the Governing Body of the Agency, a copy of which writing shall be delivered to PARS.

Any officer of PARS, or his or her designees, shall have the authority to act for and exercise any of the rights of PARS as set forth in this Agreement.

15. Notices. All notices hereunder and communications regarding the interpretation of the terms of this Agreement, or changes thereto, shall be effected by delivery of the notices in person or by depositing the notices in the U.S. mail, registered or certified mail, return receipt requested, postage prepaid and addressed as follows:
(A) To PARS: PARS; 4350 Von Karman Avenue, Suite 100, Newport Beach, CA 92660; Attention: President
(B) To Agency: City of Del Mar; 1050 Camino Del Mar, Del Mar, CA 92014; Attention: City Manager
Notices shall be deemed given on the date received by the addressee.

16. Term of Agreement. This Agreement shall remain in effect for the period beginning March 18, 2024 and ending March 17, 2027 (“Term”). This Agreement may be terminated at any time by giving thirty (30) days written notice to the other party of the intent to terminate. Absent a thirty (30) day written notice to the other party of the intent to terminate, this Agreement will continue unchanged for successive twelve-month periods following the Term.

17. Amendment. This Agreement may not be amended orally, but only by a written instrument executed by the parties hereto.
9 March 18, 2024 Item 09 13 April 7, 2026 Item 15

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18. Entire Agreement. This Agreement, including exhibits, contains the entire understanding of the parties with respect to the subject matter set forth in this Agreement.

In the event a conflict arises between the parties with respect to any term, condition or provision of this Agreement, the remaining terms, conditions, and provisions shall remain in full force and legal effect. No waiver of any term or condition of this Agreement by any party shall be construed by the other as a continuing waiver of such term or condition.

19. Attorneys Fees. In the event any action is taken by a party hereto to enforce the terms of this Agreement the prevailing party herein shall be entitled to receive its reasonable attorney’s fees.

20. Counterparts. This Agreement may be executed in any number of counterparts, and in that event, each counterpart shall be deemed a complete original and be enforceable without reference to any other counterpart.

21. Headings. Headings in this Agreement are for convenience only and shall not be used to interpret or construe its provisions.

22. Effective Date. This Agreement shall be effective on the date first above written, and also shall be the date the Agreement is executed.

AGENCY:

BY:

Ashley Jones
TITLE: City Manager
DATE:

PARS:

BY:

Tod Hammeras
TITLE: Chief Financial Officer
DATE:
10 March 18, 2024 Item 09 14 April 7, 2026 Item 15

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EXHIBIT 1A

SERVICES
PARS will provide the following services for the City of Del Mar Public Agencies PostEmployment Benefits Trust:

1. Plan Installation Services:
(A) Meeting with appropriate Agency personnel to discuss plan provisions, implementation timelines, actuarial valuation process, funding strategies, benefit communication strategies, data reporting, and submission requirements for contributions/reimbursements/distributions;
(B) Providing the necessary analysis and advisory services to finalize these elements of the Plan;
(C) Providing the documentation needed to establish the Plan to be reviewed and approved by Agency legal counsel. Resulting final Plan documentation must be approved by the Agency prior to the commencement of PARS Plan Administration Services outlined in Exhibit 1A, paragraph 2 below.

2. Plan Administration Services:
(A) Monitoring the receipt of Plan contributions made by the Agency to the trustee of the PARS Public Agencies Post-Employment Benefits Trust (“Trustee”), based upon information received from the Agency and the Trustee;
(B) Performing periodic accounting of Plan assets, reimbursements/distributions, and investment activity, based upon information received from the Agency and/or Trustee;
(C) Coordinating the processing of distribution payments pursuant to authorized direction by the Agency, and the provisions of the Plan, and, to the extent possible, based upon Agency-provided Data;
(D) Coordinating actions with the Trustee as directed by the Plan Administrator within the scope of this Agreement;
(E) Preparing and submitting a monthly report of Plan activity to the Agency, unless directed by the Agency otherwise;
(F) Preparing and submitting an annual report of Plan activity to the Agency; (G) Facilitating actuarial valuation updates and funding modifications for compliance with the applicable GASB pronouncements and/or statements, if prefunding OPEB obligations;
(H) Coordinating periodic audits of the Trust;
(I) Monitoring Plan and Trust compliance with federal and state laws.

3. PARS is not licensed to provide and does not offer tax, accounting, legal, investment or actuarial advice.
11 March 18, 2024 Item 09 15 April 7, 2026 Item 15

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EXHIBIT 1B

FEES FOR SERVICES
PARS will be compensated for performance of Services, as described in Exhibit 1A based upon the following schedule:

An annual asset fee shall be paid from Plan assets based on the following schedule:

For Plan Assets from: Annual Rate:
$1 to $10,000,000 0.25%
$10,000,001 to $15,000,000 0.20%
$15,000,001 to $50,000,000 0.15%
$50,000,001 and above 0.10%
Annual rates are prorated and paid monthly. The annual asset fee shall be calculated by the following formula [Annual rate divided by 12 (months of the year) multiplied by the Plan asset balance at the end of the month]. Trustee and Investment Management Fees are not included.
12 March 18, 2024 Item 09 16 April 7, 2026 Item 15

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EXHIBIT 1C

DATA REQUIREMENTS
PARS will provide the Services under this Agreement contingent upon receiving the following information. Agency is solely responsible for ensuring that all information and documentation provided to PARS is true, correct, and authorized:

1. Executed Legal Documents:
(A) Certified Resolution
(B) Adoption Agreement to the Public Agencies Post-Employment Benefits Trust (C) Trustee Investment Forms

2. Contribution – completed Contribution Transmittal Form signed by the Plan Administrator (or authorized Designee) which contains the following information:
(A) Agency name
(B) Contribution amount
(C) Contribution date
(D) Contribution method (Check, ACH, Wire)

3. Distribution – completed Payment Reimbursement/Distribution Form signed by the Plan Administrator (or authorized Designee) which contains the following information:
(A) Agency name
(B) Payment reimbursement/distribution amount
(C) Applicable statement date
(D) Copy of applicable premium, claim, statement, warrant, and/or administrative expense evidencing payment
(E) Signed certification of reimbursement/distribution from the Plan Administrator (or authorized Designee)

4. Other information pertinent to the Services as reasonably requested by PARS and Actuarial Provider.
13 March 18, 2024 Item 09 17 April 7, 2026 Item 15
RESOLUTION NO. 2024-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL

MAR, CALIFORNIA, APPROVING THE ADOPTION OF THE

PUBLIC AGENCIES POST-EMPLOYMENT BENEFITS TRUST

ADMINISTERED BY PUBLIC AGENCY RETIREMENT SERVICES
(PARS)
WHEREAS, PARS has made available the PARS Public Agencies PostEmployment Benefits Trust (“Program”) to public agencies for the purpose of prefunding pension obligations; and
WHEREAS, the City of Del Mar (“City”) is eligible to participate in the Program, a tax-exempt trust performing an essential governmental function within the meaning of Section 115 of the Internal Revenue Code, as amended, and the Regulations issued there under, and is a tax-exempt trust under the relevant statutory provisions of the State of California; and
WHEREAS, the City’s adoption and operation of the Program has no effect on any current or former employee’s entitlement to post-employment benefits; and WHEREAS, the terms and conditions of post-employment benefit entitlement, if any, are governed by contracts separate from and independent of the Program; and

WHEREAS, the City’s funding of the Program does not, and is not intended to, create any new vested right to any benefit nor strengthen any existing vested right; and WHEREAS, the City reserves the right to make contributions, if any, to the Program.

NOW, THEREFORE, BE IT RESOLVED that:

1. The City Council hereby adopts the PARS Public Agencies Post-Employment Benefits Trust, effective March 18, 2024; and

2. The City Council hereby appoints the City Manager, or their successor or their designee, as the City’s Plan Administrator for the Program; and

3. The City’s Plan Administrator is hereby authorized to execute the PARS legal and administrative documents on behalf of the City and to take whatever additional actions are necessary to maintain the City’s participation in the Program and to maintain compliance of any relevant regulation issued or as may be issued; therefore, authorizing him/her to take whatever additional actions are required to administer the City’s Program.
14 March 18, 2024 Item 09 18 April 7, 2026 Item 15
Resolution No. 2024-XX

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PASSED, APPROVED AND ADOPTED by the City Council of the City of Del Mar, California, at the Regular Meeting held this 18th day of March 2024.

_____________________________
Dave Druker, Mayor
City of Del Mar
APPROVED AS TO FORM:
________________________________
Leslie E. Devaney, City Attorney
City of Del Mar
ATTEST AND CERTIFICATION:

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

CITY OF DEL MAR
I, Sarah Krietor, the Administrative Services Manager/City Clerk of the City of Del Mar, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 2024-XX, adopted by the City Council of the City of Del Mar, California, at a Regular Meeting held the 18th day of March 2024, by the following vote:

AYES:

NOES:

RECUSE:

ABSENT:

ABSTAIN:
________________________________
Sarah Krietor, Administrative Services
Manager/City Clerk
City of Del Mar
15 March 18, 2024 Item 09 19 April 7, 2026 Item 15

CITY OF DEL MAR

PENSION RESERVE POLICY
The following is the Pension Reserve Policy adopted by the Del Mar City Council on May 31, 2023.

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ATTACHMENT D
Comparative Investment Plan Tables
Table A below compares the asset class target allocations between PARS Target Index platform, CalPERS CEPPT program, and CalPERS retirement funds. PARS Full-Service platform is not included in this table since it can be customizable to the City’s needs.

Table A: Asset Class Target Allocations

PARS - PFMAM
Target Index
Fixed
Income
Conservative Balanced Growth
Fixed Income 100% 60% 40% 25%
Domestic Equity - 24% 36% 45%
International Equity - 12% 18% 22.5%
Other Growth - 4% 6% 7.5%
CalPERS - CEPPT Strategy 1 Strategy 2
Fixed Income 44% 61%
Global Equity 37% 21%
REITs 14% 9%
TIPS 5% 9%
CalPERS PERF
Public Equity 50%
Private Equity 8%
Income 28%
Real Assets 13%
Cash 1%
Table B below compares the investment returns for all programs/platforms as of December 31, 2023. The retirement funds (PERF) held by PERS are based on results as of June 30, 2023. For comparison purposes, included in this table are some results for some portfolios that are offered by PARS Full-Service platform.

Table B: Investment Returns (as of December 31, 2023)
PARS – PFMAM
Target Index
Fixed Income
(%)
1 Year 3 Years 5 Years
Fixed 100% 6.98% -2.54% 1.28%
Conservative 60% 12.63% 0.93% 6.03%
Balanced 40% 15.32% 2.56% 8.15%
Growth 25% 17.36% 3.82% 9.61%

PARS - PFMAM
Full Service
Fixed Income
(%)
1 Year 3 Years 5 Years
Cap Appreciation 75% 17.32% 4.22% 9.71%
Balanced 60% 15.39% 2.89% 8.25%
Moderate 50% 13.98% 2.08% 7.17%
Mod Conservative 30% 11.05% 0.35% 4.95%
Conservative 15% 8.81% -0.96% 3.30%
18 March 18, 2024 Item 09 22 April 7, 2026 Item 15
Comparative Investment Plan Tables

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Table B: Investment Returns (as of December 31, 2023)- con’t.

CalPERS-CEPPT Fixed Income
(%)
1 Year 3 Years 5 Years
Strategy 1 37% 12.11% 0.90% -
Strategy 2 21% 9.23% -0.92% -
CalPERS Fixed Income
(%)
1 Year 3 Years 5 Years
PERF* 30% 5.8% 6.4% 6.1%
*As of June 30, 2023
Table C below compares the administrative and investment management fees of PARS Full Service and Target Index portfolios and PERS CEPPT program. Management fees for the retirement funds (PERF) held by PERS was not easily accessible and not included in this table.

The rates listed on the table below are based on an up to $5M initial deposit into the trust account.

Table C: Section 115 Trust Fees
Program PARS-PFMAM
Full Service

PARS-PFMAM
Target Index
CalPERS
CEPPT
Administration Fees 0.25% 0.25% 0.25%
Investment Management Fees 0.35% 0.121% Included
Total Fees 0.60% 0.371% 0.25%
Annual Fee (based on $5M) $30,000 $18,550 $12,500
19 March 18, 2024 Item 09 23 April 7, 2026 Item 15
City of Del Mar
Council Liaison Report

TO: City Councilmembers
FROM: Tracy Martinez, Mayor
DATE: April 7, 2026
Sustainability Advisory Committee
Informational Report/Highlights: SAC met on March 18th and completed their Work Plan.

Legislative Subcommittee
Deputy Mayor Spelich and I met with Senator Blakespear’s staff Francine Busby and Diane Kudlow on March 18th to discuss 1) Progress on the ENRA and Affordable Housing on the Fairgrounds and 2) San Dieguito Lagoon Sand Accumulation Concerns.

Del Mar Community Connections
DMCC will host the first Senior Fair on Saturday March 28th at 12 noon at City Hall.

The free event is designed to connect local older adults and caregivers with essential community services.

North County Transit District
Informational Report/Highlights: Summary of March 19, 2026, NCTD Board Meeting:
1) NCTD’S FINAL CLIMATE ADAPTATION AND INFRASTRUCTURE
RESILIENCY PLAN: The Board of Directors unanimously approved NCTD’s Final Climate Adaptation and Infrastructure Resiliency Plan. On August 31, 2023, North County Transit – San Diego Railroad (NCTD) was awarded $627,000 in funding through the Caltrans Climate Adaptation Planning – Sustainable Transportation Planning Grant Program to conduct an NCTD Climate Adaptation and Infrastructure Resiliency Plan (CAIRP). The CAIRP assesses the NCTD service area and facilities to identify and assess climate risks to NCTD rail and bus infrastructure, facilities, and surrounding populations. The Plan evaluates specific climate impacts and identifies remedies aimed at improving NCTD’s resiliency for convenience, access, and reliability of its multimodal transit system. The Board of Directors approved the final plan.
1 April 7, 2026 Item XI and XII
City Council Liaison Report
April 7, 2026

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2) UPDATE REGARDING NCTD BUS AND MAINTENANCE OPERATIONS INSOURCING: The Board received an update regarding the insourcing of bus and maintenance operations that took place in June 2025. NCTD staff collaborated with MV Transportation to complete the full transition, which included issuing over 55 purchase orders for essential services and specialty equipment; onboarding approximately 450 employees from MV Transportation; developing a custom Bus Operations dispatch system; and aligning Standard Operating Procedures to support direct operations. NCTD has also completed negotiations with Teamsters Local 542 and Amalgamated Transit Union (ATU) Local 1309 and has implemented five new collective bargaining agreements associated with Bus Operations and Maintenance. NCTD has also focused on managing and acquiring parts and materials contracts, integrating our Safety Teams directly with frontline staff and streamlining processes for administrative and front-line employees. 3) UPDATE ON PROPOSED STATE LEGISLATION RELATED TO SENATE BILL 79: Senate Bill (SB) 79 (Wiener, Chapter 512, Statutes of 2025) enacted significant changes to state housing law intended to increase housing density near major transit stops in transit-dense counties. This bill would allow multiple rail services to be added together to meet the 48-train threshold for high frequency commuter rail, potentially expanding SB 79’s applicability to additional rail stations. Staff received direction from the Board to: Oppose expansion of SB79, including opposition to SB677 and SB908 (“SB79 Bills”) in their entirety with direction to staff to state to include the following in the opposition letter to include the following in the opposition letter as reasons for the opposition, including:
1) Because it imposes a uniform statewide mandate; 2) Delay the effective dates for implementation and enforcement of the SB 79 Bills to next Regional Housing Needs Assessment (RHNA); and 3) Exclude state-sponsored intercity passenger rail service from commuter rail frequency calculations.

San Diego Association of Governments Board (SANDAG)
I attended the SANDAG retreat on day two. Staff provided an Express Lanes 201 presentation followed by a long discussion. This session will provide Board members with a more detailed view into what is coming next on the regional express lanes system. Board members will consider upcoming decision points and how best to align policy direction, operations, and community expectations. 2 April 7, 2026 Item XI and XII

Del Mar City CouncilApril 7, 2026

Del Mar City Council
April 7, 2026