Agenda packet — Escondido City Council, March 2, 2022 (part 1 of 2)

CITY of ESCONDIDO
Council Meeting Agenda
WEDNESDAY, MARCH 02, 2022
4:00 PM - Closed Session
5:00 PM - Regular Session
Escondido City Council Chambers, 201 North Broadway, Escondido, CA 92025

WELCOME TO YOUR CITY COUNCIL MEETING
We welcome your interest and involvement in the legislative process of Escondido. This agenda includes information about topics coming before the City Council and the action recommended by City staff.

MAYOR
Paul McNamara

DEPUTY MAYOR
Tina Inscoe (District 2)

COUNCILMEMBERS
Consuelo Martinez (District 1)
Joe Garcia (District 3)
Michael Morasco (Disctrict 4)

CITY MANAGER
Sean McGlynn

CITY ATTORNEY
Michael McGuinness

CITY CLERK
Zack Beck

HOW TO WATCH
The City of Escondido provides three ways to watch a City Council meeting:

In Person On TV Online
201 N. Broadway Cox Cable Channel 19 and U-verse Channel 99 www.escondido.org 1 Wednesday, March 02, 2022

HOW TO PARTICIPATE
The City of Escondido provides two ways to communicate with the City Council during a meeting:

In Person In Writing

Fill out Speaker Slip and Submit to City Clerk https://escondido-ca.municodemeetings.com

ASSISTANCE PROVIDED
If you need special assistance to participate in this meeting, please contact our ADA Coordinator at 760-839-4869.

Notification 48 hours prior to the meeting will enable to city to make reasonable arrangements to ensure accessibility. Listening devices are available for the hearing impaired – please see the City Clerk.

2 Wednesday, March 02, 2022

CLOSED SESSION
4:00 PM

CALL TO ORDER

1. Roll Call: Garcia, Inscoe, Martinez, Morasco, McNamara

ORAL COMMUNICATIONS
In addition to speaking during particular agenda items, the public may address the Council on any item which is not on the agenda provided the item is within the subject matter jurisdiction of the City Council. State law prohibits the Council from discussing or taking action on such items, but the matter may be referred to the City Manager/staff or scheduled on a subsequent agenda. Speakers are limited to only one opportunity to address the Council under Oral Communications.

CLOSED SESSION
I. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Government Code section 54956.9(d)(2))

a. Matter of Potential Litigation by Rincon Band of Luiseno Indians

II. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Government Code section 54956.9(d)(4))

a. Matter of Potential Litigation against YMCA

III. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Government Code section 54956.9(d)(1))

a. Case Name: City of Escondido v. Robin L. Patterson, et. al.

Case No.: San Diego Superior Court Case No. 37-2022-00004144-CU-BC-NC b. Case Name: Citizen’s Development Corporation, Inc. v. County of San Diego, et. al.

Case No.: US District Court Case No. 12-CV-00334 GPC (KSC) c. Case Name: Building Industry Association of San Diego County v. City of Escondido Case No.: San Diego Superior Court Case No. 37-2021-00008423-CU-MC-NC d. Case Name: Touchstone MF Fund I, LLC v. City of Escondido Case No.: San Diego Superior Court Case No. 37-2020-00020856-CU-BC-NC

ADJOURNMENT

3 Wednesday, March 02, 2022

REGULAR SESSION
5:00 PM Regular Session

MOMENT OF REFLECTION
City Council agendas allow an opportunity for a moment of silence and reflection at the beginning of the evening meeting. The City does not participate in the selection of speakers for this portion of the agenda, and does not endorse or sanction any remar ks made by individuals during this time. If you wish to be recognized during this portion of the agenda, please notify the City Clerk in advance.

FLAG SALUTE
The City Council conducts the Pledge of Allegiance at the beginning of every City Council meeting.

CALL TO ORDER
Roll Call: Garcia, Inscoe, Martinez, Morasco, McNamara

PRESENTATIONS
North County Family Justice Center Presentation
Education Compact: 5 Best Retailers Awards

CLOSED SESSION REPORT

CONSENT CALENDAR
Items on the Consent Calendar are not discussed individually and are approved in a single motion. However, Council members always have the option to have an item considered separately, either on their own request or at the request of staff or a member of the public.

1. AFFIDAVITS OF PUBLICATION, MAILING, AND POSTING (COUNCIL/RRB) - 4 Wednesday, March 02, 2022

2. APPROVAL OF WARRANT REGISTER (COUNCIL) -
Request approval for City Council and Housing Successor Agency warrant numbers:
a.360048 – 360150 dated January 26, 2022
b.360254 – 360502 dated February 2, 2022
c.360503 – 360746 dated February 9, 2022
d. 360747 – 361016 dated February 16, 2022
Staff Recommendation: Approval (Finance Department: Christina Holmes)

3. APPROVAL OF MINUTES: Regular meetings of January 26, 2022 and February 2, 2022

4. CALIFORNIA LIBRARY LITERACY SERVICES ESL GRANT $52,000 - Request the City Council approve Resolution 2022-30, authorizing the Deputy City Manager / Director of Communications & Community Services, or her designee, to receive grant funds and execute on its behalf, grant related documents necessary for the completion of the English as a Second Language Services.

Staff Recommendation: Approval (Communications & Community Services: Joanna Axelrod) Presenter: Joanna Axelrod
a. Resolution No. 2022-30

5. FISCAL YEAR 2020 URBAN AREA SECURITY INITATIVE (UASI) GRANT PROGRAM AND BUDGET

ADJUSTMENT -
Request the City Council approve a Fiscal Year 2020 Urban Area Security Initiative (“UASI”) Grant Award Amendment in the amount of $85,230; authorize the Fire Chief or his designee to execute grant documents on behalf of the City of Escondido (“City”); and approve budget adjustments needed to spend grant funds.

Staff Recommendation: Approval (Fire Department: Rick Vogt) Presenter: Rick Vogt

5 Wednesday, March 02, 2022

6. OUT OF AGENCY SERVICE AGREEMENTS FOR 2509 FELICITA ROAD AND 450 BEAR VALLEY PARKWAY - Request the City Council approve (1) Resolution No. 2022-35, making application to the Local Agency Formation Commission (“LAFCO”) for an out-of-agency service agreement and authorizing the mayor to execute said agreement, establishing a pre-zoning designation of RE-20, and authorizing submittal of an annexation application to LAFCO for a property located at 2509 Felicita Road and (2) approve Resolution No. 2022-36, making application to LAFCO for an out of agency service agreement and authorizing the mayor to execute said agreement, and establishing a pre-zoning designation of RE-20 for a property located at 450 Bear Valley Parkway.

Staff Recommendation: Approval (Community Development Department: Adam Finestone) Presenter: Adam Finestone
a. Resolution No. 2022-35
b. Resolution No. 2022-36

7. APPROVAL OF CALPERS INDUSTRIAL DISABILITY RETIREMENT FOR POLICE SERGEANT FRED

CHEATHAM-
Request the City Council approve the California Public Employees’ Retirement System (“CalPERS”) Industrial Disability Retirement for Police Sergeant Fred Cheatham.

Staff Recommendation: Approval (Human Resources Department: Jessica Perpetua) Presenter: Jessica Perpetua
a. Resolution No. 2022-37

8. APPROVAL OF CALPERS INDUSTRIAL DISABILITY RETIREMENT FOR POLICE OFFICER ROY F. HUSTON JR. -
Request the City Council approve the California Public Employees’ Retirement System (CalPERS) Industrial Disability Retirement for Police Officer Roy F. Huston Jr.

Staff Recommendation: Approval (Human Resources Department: Jessica Perpetua) Presenter: Jessica Perpetua
a. Resolution No. 2022-38

6 Wednesday, March 02, 2022

9. APPROVAL OF CALPERS INDUSTRIAL DISABILITY RETIREMENT FOR POLICE CAPTAIN JUSTIN F.

MURPHY-
Request the City Council approve the California Public Employees’ Retirement System (“CalPERS”) Industrial Disability Retirement for Police Captain Justin F. Murphy.

Staff Recommendation: Approval (Human Resources Department: Jessica Perpetua) Presenter: Jessica Perpetua
a. Resolution No. 2022-39

10. CITYWIDE FIREWALL REPLACEMENT -
Request the City Council approve to adopt Resolution No. 2022-40 authorizing the Deputy City Manager/ Director of Information Systems, or his designee, to procure and establish a citywide firewall replacement.

Staff Recommendation: Approval (Information Systems Department: Rob Van De Hey) Presenter: Ken Conradie
a. Resolution No. 2022-40

CONSENT RESOLUTIONS AND ORDINANCES (COUNCIL/RRB)
The following Resolutions and Ordinances were heard and acted upon by the City Council/RRB at a previous City Council/Mobilehome Rent Review meeting. (The title of Ordinances listed on the Consent Calendar are deemed to have been read and further reading waived.)

11. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ESCONDIDO, CALIFORNIA, ADOPTING

AMENDMENTS TO THE ESCONDIDO MUNICIPAL CODE FOR THE SELECTION PROCESS AND TERMS AND

COMPOSIITON OF VARIOUS CITY AND INTERAGENCY BOARDS AND COMMISSIONS - Approved on December 15, 2021 with a vote of 5/0.
a. Ordinance No. 2021-14R (Second Reading and Adoption)

7 Wednesday, March 02, 2022

PUBLIC HEARINGS

12. RESOLUTION OF FORMATION FOR COMMUNITY FACILITIES DISTRICT (CFD) 2022-1 (ECLIPSE AND

MOUNTAIN HOUSE) -
Request that the City Council hold a public hearing and approve to adopt Resolution No. 2022-10 establishing Community Facilities District (“CFD”) 2022-1, and Resolution No. 2022-11 determining the necessity to incur bonded indebtedness for the Eclipse and Mountain House Projects. Further recommendations include adoption of Resolution No. 2022-12 certifying election results, and Resolution No. 2022-14 annexing the project as Zone 2020-6 of the Citywide Services CFD 2020-1. Finally, it is recommended that Ordinance No. 2022-03 be introduced for first reading.

Staff Recommendation: Approval (Engineering Services Department: Julie Procopio) Presenter: Julie Procopio
a. Resolution No. 2022-10
b. Resolution No. 2022-11
c. Resolution No. 2022-12
d. Resolution No. 2022-14
e. Ordinance No. 2022-03 (First Reading and Introduction)

13. DEVELOPMENT AGREEMENT AND MAJOR PLOT PLAN FOR THE VIA PORTOFINO APARTMENT PROJECT (ADM 18-0225 AND PL 22-0021) -
Request the City Council (1) adopt Ordinance No. 2022-04, approving a Development Agreement for the Via Portofino apartment project and (2) approve Resolution No. 2022-31, approving a Major Plot Plan for the Via Portofino apartment project.

Staff Recommendation: Approval (Community Development Department: Adam Finestone) Presenter: Adam Finestone
a. Resolution No. 2022-31
b. Ordinance No. 2022-04 (First Reading and Introduction)

8 Wednesday, March 02, 2022

14. RECOMMENDED REDISTRICTING PLAN OF THE ESCONDIDO INDEPENDENT REDISTRICTING

COMMISSION -
Request the City Council receive and file a report on the Recommended Redistricting Plan.

Staff Recommendation: Receive and File (City Clerk’s Office: Zack Beck) Presenter: Zack Beck

CURRENT BUSINESS

15. BUILDING FORWARD LIBRARY INFRASTRUCTURE PROGRAM GRANT $10 MILLION - Request the City Council approve Resolution authorizing the Deputy City Manager/Director of Communications & Community Services to submit an application to the California State Library for $10 million in funding through the Building Forward Library Infrastructure Program Grant and complete all necessary documentation to receive and spend funds should they be awarded.

Staff Recommendation: Approval (Communications & Community Services: Joanna Axelrod) Presenter: Joanna Axelrod
a. Resolution No. 2022-32

16. TREASURER’S INVESTMENT STRATEGY CHANGE -
Request the City Council approve to adopt Resolution No. 2022-42 authorizing the City Treasurer to terminate the investment contract with PFM and approve the budget adjustment for investment software in the amount of $7,000.

Staff Recommendation: Approval (City Treasurer: Douglas Shultz) Presenter: Douglas Shultz
a. Resolution No. 2022-42

FUTURE AGENDA

17. FUTURE AGENDA
The purpose of this item is to identify issues presently known to staff or which members of the City Council wish to place on an upcoming City Council agenda. Council comment on these future agenda items is limited by California Government Code Section 54954.2 to clarifying questions, brief announcements, or requests for factual information in connection with an item when it is discussed.

Staff Recommendation: None (City Clerk's Office: Zack Beck)

COUNCILMEMBERS SUBCOMMITTEE REPORTS AND OTHER REPORTS
9 Wednesday, March 02, 2022

CITY MANAGER’S WEEKLY ACTIVITY REPORT
The most current information from the City Manag er regarding Economic Development, Capital Improvement Projects, Public Safety, and Community Development. This report is also available on the City’s website, www.escondido.org.

ADJOURNMENT

UPCOMING MEETING SCHEDULE
Wednesday, March 16, 2022 4:00 & 5:00 PM Regular Meeting, Council Chambers Wednesday, March 23, 2022 4:00 & 5:00 PM Regular Meeting, Council Chambers

SUCCESSOR AGENCY
Members of the Escondido City Council also sit as the Successor Agency to the Community Development Commission, Escondido Joint Powers Financing Authority, and the Mobilehome Rent Review Board.

10 Consent Item No. 1 March 2, 2022

A F F I D A V I T S

I T E M

P O S T I N G
11 Item1.

STAFF REPORT

March 2, 2022
File Number 0400-40

SUBJECT

APPROVAL OF WARRANTS

DEPARTMENT
Finance

RECOMMENDATION
Request approval for City Council and Housing Successor Agency warrant numbers:

360048 – 360150 dated January 26, 2022
360254 – 360502 dated February 2, 2022
360503 – 360746 dated February 9, 2022
360747 – 361016 dated February 16, 2022
Staff Recommendation: Approval (Finance Department: Christina Holmes)

FISCAL ANALYSIS
The total amount of the warrants for the following periods are as follows:

January 20 – January 26, 2022, is $10,299,797.67
January 27 – February 2, 2022, is $1,960,142.67
February 3 – February 9, 2022, is $2,688,684.29
February 10 – February 16, 2022, is $4,887,394.64

BACKGROUND

The Escondido Municipal Code Section 10-49 states that warrants or checks may be issued and paid prior to audit by the City Council, provided the warrants or checks are certified and approved by the Director of Finance as conforming to the current budget. These warrants or checks must then be ratified and approved by the City Council at the next regular Council meeting.

12 Item2.

January 26, 2022 Escondido City Council Minutes Page 1 of 5

REGULAR SESSION
5:00 PM Regular Session
January 26, 2022

MOMENT OF REFLECTION
Zack Beck

FLAG SALUTE
Mike McGuinness

CALL TO ORDER
Roll Call: Garcia, Inscoe, Martinez, Morasco, McNamara

PRESENTATIONS
Review of Community Opinion Survey Results

ORAL COMMUNICATIONS
None.

CONSENT CALENDAR
Motion to approve all Consent Calendar items: Martinez; Second: Morasco; Approved: 5-0

1. AFFIDAVITS OF PUBLICATION, MAILING, AND POSTING (COUNCIL/RRB) -

2. APPROVAL OF WARRANT REGISTER (COUNCIL) -
Request the City Council approve the City Council and Housing Successor Agency warrant numbers:
a. 359554– 359740 dated January 5, 2022
b. 359741 – 359906 dated January 12, 2022
Staff Recommendation: Approval (Finance Department: Christina Holmes)

3. APPROVAL OF MINUTES: Regular Meeting of January 12, 2022 13 Item3.

January 26, 2022 Escondido City Council Minutes Page 2 of 5

4. RESOLUTION OF INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2022-1 (ECLIPSE AND MOUNTAIN HOUSE -
Request the City Council approve declaring its intent to establish Community Facilities District (“CFD”) No. 2022-1 to fund public facilities related costs for the Eclipse and Mountain House Projects (“Projects”) and setting a public hearing date of March 2, 2022. It is further recommended that the City Council approve Resolution No. 2022-08, declaring its intent to incur bond indebtedness, and approve a Funding Agreement by and among CWC Escondido 113, LLC, TTLC CALWEST, LLC (collectively, the “Developers”) and the City regarding the acquisition and funding of public facilities resulting from the development of the CFD. (File Number 0685-20)
Staff Recommendation: Approval (Engineering Services Department: Julie Procopio) a. Resolution No. 2022-02
b. Resolution No. 2022-08

5. LOCAL ASSISTANCE GRANT FOR ORGANICS RECYCLING PROGRAM - Request the City Council approve authorizing the Director of Utilities, or his/her designee, to submit an application to CalRecycle for the SB 1383 Local Assistance Grant. This grant would support the implementation and administration of Escondido's new organics recycling program. (File Number 0480-70)
Staff Recommendation: Approval (Utilities Department: Christopher W. McKinney) a. Resolution No. 2022-19

CONSENT RESOLUTIONS AND ORDINANCES (COUNCIL/RRB)
The fo llowing Resolutions and Ordinances were heard and acted upon by the City Council/RRB at a previous City Council/Mobilehome Rent Review meeting. (The title of Ordinances listed on the Consent Calendar are deemed to have been read and further reading waived.)

6. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ESCONDIDO, CALIFORNIA, AMENDING CHAPTER 32 OF THE MUNICIPAL CODE PERTAINING TO SUBDIVISIONS - Approved on January 12, 2022 with a vote of 5/0.
a. Ordinance No. 2022-02 (Second Reading and Adoption)

14 Item3.

January 26, 2022 Escondido City Council Minutes Page 3 of 5

PUBLIC HEARINGS

7. REVIEW AND RE-AFFIRM COMMUNITY DEVELOPMENT PRIORITIES OF THE FISCAL YEAR 2020- 2024 CONSOLIDATED PLAN AND APPROVE ALLOCATION PROCESS FOR FISCAL YEAR 2022- 2023 CBDG AND ESG FUNDING -
Request the City Council review and re-affirm the community development and homeless priorities of the fiscal year 2020-2024 Consolidated Plan, and provide guidance on an allocation process for fiscal year 2022-2023 Community Development Block Grant (“CDBG”) and Emergency Solutions Grant (“ESG”) funds, and authorize the release of Requests for Proposals for the use of CDBG and ESG funds. (File Number 0260-45) Staff Recommendation: Provide Direction (Community Development Department: Adam Finestone)

CURRENT BUSINESS

8. MANAGEMENT AND CONCESSION CONTRACT FOR REIDY CREEK GOLF COURSE - Request the City Council approve authorizing staff to move forward with issuing a Request for Proposals (“RFP”) for the management of the Reidy Creek Golf Course and Concessions. (File Number 0470-32)
Staff Recommendation: Approval (Communications and Community Services Department:

Danielle Lopez)

9. ESCONDIDO CREEK TRAIL EXPANSION AND RENOVATION PROJECT UPDATE - Request the City Council receive and file an update on the progress of the Escondido Creek Trail Expansion and Renovation Project (“Project”) funded through an $8.5 million Prop 68 grant. (File Number 0480-70)
Staff Recommendation: Receive and File (Communications and Community Services: Joanna Axelrod)

15 Item3.

January 26, 2022 Escondido City Council Minutes Page 4 of 5

10. AUTHORIZING A SECOND AMENDMENT TO THE ESCONDIDO-VISTA WATER FILTRATION

JOINT POWERS AGREEMENT, AND AUTHORIZING THE TRANSFER OF OWNERSHIP OF

CERTAIN RAW WATER COMVEYANCE FACILITIES -
Request the City Council approve authorizing the Mayor to execute, on behalf of the City of Escondido: (1) a Second Amendment to the Escondido-Vista Water Filtration Joint Powers Agreement (JPA); (2) an Assignment and Assumption Agreement; (3) a Quitclaim Deed; and (4) a Bill of Sale. (File Number 1320-55; 0600-10, A-0511)
Staff Recommendation: Approval (Utilities Department: Christopher W. McKinney) a. Resolution No. 2022-05
Motion: Garcia; Second: Martinez; Approved: 5-0

WORKSHOP

11. CALPERS PENSION FUNDING WORKSHOP -
Request the City Council receive and file information on the City’s California Public Employees Retirement System pension obligations. (File Number 0460-20) Staff Recommendation: Receive and File (Finance Department: Christina Holmes)

ORAL COMMUNICATIONS
None.

FUTURE AGENDA

12. FUTURE AGENDA
The purpose of this item is to identify issues presently known to staff or which members of the City Council wish to place on an upcoming City Council agenda. Council comment on these future agenda items is limited by California Government Code Section 54954.2 to clarifying questions, brief announcements, or requests for factual information in connection with an item when it is discussed.

Staff Recommendation: None (City Clerk's Office: Zack Beck)

COUNCILMEMBERS SUBCOMMITTEE REPORTS AND OTHER REPORTS
Councilmember Martinez - Attended an Air Pollution Control District Board Meeting.

Councilmember Garcia - Health Fair and Vaccination Clinic at the North County Live Well Center on January 30, 2022. Received positive feedback from the community regarding City Clerk Zack Beck. 16 Item3.

January 26, 2022 Escondido City Council Minutes Page 5 of 5

Councilmember Morasco – Expressed appreciation for City staff Deputy Mayor Inscoe - Attended San Dieguito River Park JPA Meeting.

Mayor McNamara - Attended NCTD meeting.

CITY MANAGER’S WEEKLY ACTIVITY REPORT
The most current information from the City Manager regarding Economic Development, Capital Improvement Projects, Public Safety, and Community Development. This report is also available on the City’s website, www.escondido.org.

ADJOURNMENT
Mayor McNamara adjourned the meeting at 8:24 p.m.

______________________________ _______________________________

MAYOR CITY CLERK

17 Item3.

February 2, 2022 Escondido City Council Minutes Page 1 of 5

REGULAR SESSION
5:00 PM Regular Session
February 2, 2022

MOMENT OF REFLECTION
Zack Beck

FLAG SALUTE
Mike McGuinness

CALL TO ORDER
Roll Call: Garcia, Inscoe, Martinez, Morasco, McNamara

PRESENTATION
City of Escondido Independent Redistricting Commission Update

ORAL COMMUNICATIONS
None.

CONSENT CALENDAR
Motion to approve all consent calendar item: Morasco; Second: Martinez; Approved 5-0

1. AFFIDAVITS OF PUBLICATION, MAILING, AND POSTING (COUNCIL/RRB) -

18 Item3.

February 2, 2022 Escondido City Council Minutes Page 2 of 5

2. APPROVAL OF WARRANT REGISTER (COUNCIL) -
Request the City Council approve the City Council and Housing Successor Agency warrant numbers:
a. 359907 – 360047 dated January 19, 2022.

Staff Recommendation: Approval (Finance Department: Christina Holmes)

3. APPROVAL OF MINUTES: None Scheduled

4. ANNUAL STATE MANDATED INSPECTION COMPLIANCE REPORT - Request the City Council approve acknowledging the Fire Department's report of compliance with annual State mandated inspections. (File Number 0320-10) Staff Recommendation: Approval (Fire Department: Rick Vogt) Presenter: Rick Vogt
a. Resolution No. 2022-01

5. TREASURER’S INVESTMENT REPORT FOR THE QUARTER ENDED DECEMBER 31, 2021 - Request the City Council receive and file the Quarterly Investment Report for the quarter ended December 31, 2021. (File Number 0490-55)
Staff Recommendation: Receive and File (City Treasurer: Douglas Shultz) Presenter: Douglas Shultz

6. NOTICE OF COMPLETION FOR GATEWAY GRAND PROJECT (ENG 16-0029; SUB16-0001) LOCATED AT 700 WEST GRAND AVENUE -
Request the City Council approve to accept the Public Improvements and authorize staff to file a Notice of Completion (“NOC”) for the Gateway Grand Project. (File Number 0910-20) Staff Recommendation: Approval (Engineering Services Department: Julie Procopio) Presenter: Julie Procopio
a. Resolution No. 2022-20

19 Item3.

February 2, 2022 Escondido City Council Minutes Page 3 of 5

7. NOTICE OF COMPLETION FOR LEXUS OVERFLOW PARKING LOT (ENG 19-0002) LOCATED AT 1528 & 1551 TANGLEWOOD LANE -
Request the City Council approve to accept the Public Improvements and authorize staff to file a Notice of Completion (“NOC”) for the Lexus Overflow Parking Lot (“Project”). (File Number 0910-20)
Staff Recommendation: Approval (Engineering Services Department: Julie Procopio) Presenter: Julie Procopio
a. Resolution No. 2022-21

8. APPROVAL OF A CHANGE ORDER TO COMPLETE ADDITIONAL WORK FOR THE 2021 STREET REHABILITATION AND MAINTENANCE PROJECT –
Request the City Council approve to authorize a change order to the 2021 Street Rehabilitation and Maintenance Project – Phase 2 (“Project”) in the amount of $320,141.67 to add pavement resurfacing along Country Club Lane to complete resurfacing outside of the Canopy Grove project limits of work and perform pavement repairs for a water main break on Sunset Drive. (File Number 0910-20)
Staff Recommendation: Approval (Engineering Services Department: Julie Procopio) Presenter: Julie Procopio
a. Resolution No. 2022-22

9. DENIAL OF CALPERS INDUSTRIAL DISABILITY RETIREMENT FOR POLICE SERGEANT PAUL F.

WOODWARD –
Request the City Council approve denying the California Public Employees’ Retirement System (“CalPERS”) Industrial Disability Retirement for Police Sergeant Paul F. Woodward. (File Number 0170-57)
Staff Recommendation: Approval (Human Resources Department: Jessica Perpetua) Presenter: Jessica Perpetua
a. Resolution No. 2022-23

20 Item3.

February 2, 2022 Escondido City Council Minutes Page 4 of 5

10. CITY BUSINESS LICENSE TAX RECIPROCAL AGREEMENT WITH FRANCHISE TAX BOARD - Request the City Council approve authorizing the Mayor or his designee to execute an agreement with the State of California Franchise Tax Board (FTB) to renew and continue the City's participation in the FTB City Business Tax Program. (File Number 0600-10) Staff Recommendation: Approval (Information Systems Department: Rob Van De Hey) Presenter: Rob Van De Hey
a. Resolution No. 2022-27

CURRENT BUSINESS

11. FINANCIAL STATUS REPORT FOR THE FISCAL YEAR 2021/22 SECOND QUARTER ENDING DECEMBER 31, 2021 AND BUDGET ADJUSTMENT -
Request the City Council receive and file the second quarter financial report and approve a budget adjustment to amend the fiscal year 2021/22 operating budget. (File Number 0430-80) Staff Recommendation: Approval (Finance Department: Christina Holmes) Presenter: Christina Holmes
Motion: Garcia; Second: Inscoe; Approved 5-0

FUTURE AGENDA

Staff Recommendation: None (City Clerk's Office: Zack Beck)

COUNCILMEMBERS SUBCOMMITTEE REPORTS AND OTHER REPORTS
21 Item3.

February 2, 2022 Escondido City Council Minutes Page 5 of 5

CITY MANAGER’S WEEKLY ACTIVITY REPORT
The most current information from the City Manager regarding Economic Development, Capital Improvement Projects, Public Safety, and Community Development. This report is also available on the City’s website, www.escondido.org.

ORAL COMMUNICATIONS
None.

ADJOURNMENT
Mayor McNamara adjourned the meeting at 6:03 p.m.

______________________________ _______________________________

MAYOR CITY CLERK

22 Item3.

STAFF REPORT

March 2, 2022
File Number 0480-70

SUBJECT
CALIFORNIA LIBRARY LITERACY SERVICES ESL GRANT $52,000 -

DEPARTMENT
Communications & Community Services

RECOMMENDATION
Request the City Council approve Resolution 2022-30, authorizing the Deputy City Manager / Director of Communications & Community Services, or her designee, to receive grant funds and execute on its behalf, grant related documents necessary for the completion of the English as a Second Language Services.

Staff Recommendation: Approval (Communications & Community Services: Joanna Axelrod) Presenter: Joanna Axelrod

FISCAL ANALYSIS
There is no matching requirement or impact to the General Fund.

PREVIOUS ACTION
None.

BACKGROUND
The FY 2021-22 State budget included one-time California Library Literacy Services funding of $15 million for English as a Second Language (“ESL”) Services. These funds will be allocated over a five -year period.

The state library has awarded the Escondido Public Library $52, 000 in Year 1 funding, and we anticipate receiving the same funding level for the next four years.

This funding is separate from the funding received already in support of the Adult Literacy and Families for Literacy programs and will be used to establish an ESL program beginning in June 2022. Funds will be used to purchase ESL learning materials and supporting technology, hire dedicated part -time ESL staff, and conduct staff training. Programming will focus on small group instruction via ESL instructors, trained volunteer tutors with tailored learning instruction focused around learner goals, and in-person or virtual offerings to meet the community’s needs. It is anticipated that this service, provided free to participants, will impact 60 community members in the first year by helping to facilitate better verbal and written 23 Item4.

communication and language comprehension skills, engaging with a wider portion of the community to educate them on the services and materials offered by the library, and supporting the achievement of learner goals which include but are not limited to the pursuit of higher education, registering to vote, passing college entrance exams, and earning higher-paid jobs.

RESOLUTIONS
a. Resolution No. 2022-30

ATTACHMENTS
a. Attachment “1” - Budget Adjustment

24 Item4.

FM\105 (Rev.11/06)

C I T Y O F E S C O N D I D O

BUDGET ADJUSTMENT REQUEST

Date of Request: 3-2-22 For Finance Use Only
Log #
Fiscal Year
ear
Department: Library
Division: Literacy

Project/Budget Manager: Joanna Axelrod 4871
Name Extension
Council Date (if applicable): 3-2-22
(attach copy of staff report)
_____ Budget Balances
_____ General Fund Accts
_____ Revenue
_____ Interfund Transfers
_____ Fund Balance

Project/Account Description Account Number Amount of Increase Amount of Decrease Revenue 4128-401-new project number $52,000
Federal Library Services and
Technology Act Grant
401-new project number $52,000

Explanation of Request:

This grant will be used to purchase equipment and materials as well as fund a dedicated part-time staff member that will provide English as a Second Language programs at the Escondido Public Library. This budget adjustment is needed to establish a new project number for tracking and spending grant funds.

APPROVALS

Department Head Date

City Manager Date

Finance Date

City Clerk Date
Distribution (after approval): Original: Finance
DocuSign Envelope ID: 7DB4E6D3-94D6-4D54-B85B-3F9F83D2E78A 2/22/2022
2/22/2022
25 Item4.

RESOLUTION NO. 2022-30

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE

ACCEPTANCE OF CALIFORNIA LIBRARY LITERACY

SERVICES ENGLISH AS A SECOND LANGUAGE GRANT

FUNDS, AND THE EXECUTION, ON BEHALF OF THE CITY,

OF GRANT-RELATED DOCUMENTS

WHEREAS, the Escondido Public Library is a current recipient of California Library Literacy Services grant funding; and
WHEREAS, in June 2021 the California Legislature approved one -time California Library Literacy Services funding of $15 million for English as a Second Language Services. These funds will be allocated over a five -year period and the State Library has awarded Escond ido Public Library $52,000 in Year 1 funding; and
WHEREAS, the City of Escondido desires to strengthen the library’s capacity to deliver high-quality English as a Second Language services, help adults develop confidence and skills in their verbal and written communication; and achieve personal goals such as the pursuit of higher education.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

2. That the City Council authorizes the Deputy City Mananger / Director of Communications and Community Services, or her designee, to receive grant funds and execute, on its behalf, grant -related documents necessary for the completion of the aforementioned program.

26 Item4.

STAFF REPORT

March 02, 2022
File Number 0480-70

SUBJECT

FISCAL YEAR 2020 URBAN AREA SECURITY INITATIVE (UASI) GRANT PROGRAM AND BUDGET

ADJUSTMENT -

DEPARTMENT

Fire

RECOMMENDATION

Request the City Council accept a FY 2020 Urban Area Security Initiative (“UASI”) Grant Award Amendment in the amount of $ 85,230; authorize the Fire Chief or his designee to execute grant documents on behalf of the City of Escondido (“City”); and approve budget adjustments needed to spend grant funds (see Attachment “1”).

Staff Recommendation: Approval (Fire Department: Rick Vogt) Presenter: Rick Vogt

FISCAL ANALYSIS
The UASI program provides funding to support regional efforts to prevent, mitigate, respond to, and recover from acts of terrorism or disaster. On August 25, 2021, the City Council accepted the FY2020 UASI grant award in the amount of $70,481, a portion of this award, ($50,000) was designated to fund the Computer Aided Dispatch CAD to CAD system (“the Project”) . The total cost for the Project will be $192,230. The FY2020 UASI grant amendment will increase the funding available for the Project in the amount of $85,230. The City will be applying for the FY2021 UASI funding to cover the remaining cost of the Project in the amount of $57,000 . This action will have no impact on the General Fund Budget and does not require matching funds.

This project is funded with UASI grant monies as follows:

FY 2020 UASI FY 2020 UASI
Amendment

FY 2021 UASI
(not yet awarded)
Total
$50,000 $85,230 $57,000 192,230

27 Item5.

PREVIOUS ACTION
On August 25, 2021 , the City Council authorized the Fire and Police Departments to accept $ 70,481 in funds from a FY 2020 UASI Grant.

BACKGROUND
The intent of the Next Generation Regional Interoperability Program “NGRCIP” or “CAD2CAD” is to enhance fire and emergency services to achieve improved interoperability through the real time sharing of resource status, locations, requests for service (mutual or automatic aid) and other mission critical information. A regional next-generation CAD-to-CAD solution will promote further efficiency among the member agencies and continue to provide improved customer service to the communities they serve by increasing situational awareness and decreasing processing, reflex and response times. The CAD to CAD Project will enhance regional critical communication.

In an effort to mai ntain consistency and interoperability between the current equipment and CAD software service, and in accordance with the City of Escondido Municipal Code Sec. 10 -102(b), the procurement for this project will be from a sole source.

ATTACHMENTS
a. Attachment 1 - Budget Adjustment

28 Item5.

FM\105 (Rev.11/06)

C I T Y O F E S C O N D I D O

BUDGET ADJUSTMENT REQUEST
Date of Request: 02/22/22 For Finance Use Only
Log #
Fiscal Year
ear
Department: Fire
Division:

Project/Budget Manager: Laura Costello 5408
Name Extension
Council Date (if applicable): 03/02/2022
(attach copy of staff report)
_____ Budget Balances
_____ General Fund Accts
_____ Revenue
_____ Interfund Transfers
_____ Fund Balance
Project/Account Description Account Number Amount of Increase Amount of Decrease UASI20 451-UASI20 85,230
Federal Grant Revenue 4128-451 85,230
Explanation of Request:

The Fire Departments is requesting a budget adjustment in order to track funding for the grant award amendment of $85,230 from the Urban Area Security Initative ("UASI") grant program.

APPROVALS

Department Head Date City Manager Date

Finance Date City Clerk Date
Distribution (after approval): Original: Finance
DocuSign Envelope ID: A3EAD064-AD85-4475-BA3C-E4E101CD99C5 2/22/2022
2/22/2022
Attachment "1"
29 Item5.

STAFF REPORT

March 2, 2022
File Number 0600-10

SUBJECT

OUT OF AGENCY SERVICE AGREEMENTS FOR 2509 FELICITA ROAD AND 450 BEAR VALLEY PARKWAY -

DEPARTMENT
Community Development Department, Planning Division

RECOMMENDATION
Request the City Council Approve (1) Resolution No. 2022 -35, making application to the Local Agency Formation Commission (“LAFCO”) for an out-of-agency service agreement and authorizing the mayor to execute said agreement, establishing a pre-zoning designation of RE-20, and authorizing submittal of an annexation application to LAFCO for a property located at 2509 Felicita Road and (2) approve Resolution No. 2022-36, making application to LAFCO for an out of agency service agreement and authorizing the mayor to execute said agreement , and establishing a pre -zoning designation of RE -20 for a property located at 450 Bear Valley Parkway.

Staff Recommendation: Approval (Community Development Department: Adam Finestone) Presenter: Adam Finestone

FISCAL ANALYSIS
The property owners will be required to pay fees to cover all administrative costs and staff time for processing the extension of sewer service. All fees associated with submittal of any contractual wastewater service agreement and future annexation application for the properties to LAFCO would be borne by the applicants . Upon future annexation, both properties would be required to establish a mechanism to offset future costs for the provision of public services.

ENVIRONMENTAL REVIEW
The action before the City Council is categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15303, “New Construction or Conversion of Small Structures,” and 15319(a), “Annexation of Existing Facilities and Lots for Exempt Facilities.”

PREVIOUS ACTION
None.
30 Item6.

BACKGROUND
The property owners of 2509 Felicita Road ( Benjamin C. Elliot and Christie L. Elliot ) and 450 Bear Valley Parkway (Adam Fares) have provided City of Escondido (“City”) staff with letters from the County of San Diego, Department of Environmental Health , documenting eminent failure of the properties’ existing onsite wastewater treatment systems (septic systems). City public sewer mains with adequate capacity to accommodate the additional flow generated by the properties exist in the streets in front of the subject properties (Felicita Road and Bear Valley Parkway). In order to obtain sewer service, the property owners must enter into out-of-agency service agreements with the City.

The out-of-agency service agreements include provisions that require future annexation to the City (irrevocable offers of annexation). In anticipation of that future annexation, the request also includes application of a pre-zoning designation of RE-20 (estate residential, 20,000 square foot minimum lot size) for both properties, which is consistent with the Estate II (E2) General Plan land use designation. Because the property at 2509 Felicita Road is immediately adjacent to City limits, the San Diego Local Agency Formation Commission (“LAFCO”) has placed a condition upon the provision of out -of-agency sewer service that requires the property owners to compl ete the annexation process within one year. The property at 450 Bear Valley Parkway is not immediately adjacent to City limits, and therefore annexation will occur at a future date.

RESOLUTIONS
A. Resolution No. 2022-35
B. Resolution No. 2022-35 Exhibits “A” and “B”
C. Resolution No. 2022-36
D. Resolution No. 2022-36 Exhibits “A” and “B”

31 Item6.

RESOLUTION NO. 2022-35

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR TO

EXECUTE AN OUT -OF-AGENCY SERVICE AGREEMENT,

MAKING APPLICATION TO THE LOCAL AGENCY

FORMATION COMMISSION FOR SAID AGREEMENT,
ESTABLISHING A PRE -ZONING DESIGNATION OF RE -20,

AND AUTHORIZING SUBMITTAL OF AN ANNEXATION

APPLICATION TO THE LOCAL AGENCY FORMATION
COMMISSION, FOR A PROPERTY LOCATED AT 2509

FELICITA ROAD

Case No. PL21-0281

WHEREAS, the City of Escondido ( “City”) has received a request to provide sewer service to a property located at 2509 Felicita Road (“Property”); and WHEREAS, the Property is all that real property described in Exhibit “A” hereto; and WHEREAS, the City Council desires to make application to the San Diego County Local Agency Formation Commission (“LAFCO”) for an out-of-agency service agreement (“Agreement”), attached hereto as Exhibit “B,” for the provision of sewer service to the Property; and WHEREAS, the City Council desires to make application to LAFCO for annexation of the Property; and
WHEREAS, the Property has a General Plan land use designation of Estate II, which is implemented through a zoning designation of RE-20; and
WHEREAS, the pr oject is categorically exempt from further review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15303, “New Construction or Conversion of Small Structures,” and 15319(a), “Annexation of Existing Facilities an d Lots for Exempt Facilities.”
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido , California , as follows:
32 Item6.

1. That the above recitations are true.

2. That the City Council authorizes the Mayor to execute the Agreement, on behalf of the City, in substantially the same format as Exhibit “B”, which is attached hereto and incorporated by this reference, subject to final approval as to form by the City Attorney.

3. That application is hereby made to LAFCO for the Agreement and annexation of the Property.

4. That this Agreement is necessary in order for the area to receive urban services available from the City of Escondido.

5. That LAFCO is hereby requested to undertake proceedings related to the Agreement and annexation described in this resolution.

6. That t his proposal is made pursuant to the Cortese/Knox/Hertzberg Local Government Reorganization Act of 2000, Division 3, commencing with S ection 56000 of the Government Code of the State of California.

7. That the City Clerk of the City of Escondido is hereby authorized and directed to file a certified copy of this resolution to the executive officer of LAFCO.

8. That the City Council approves Resolution No. 2022-35, making application to LAFCO for an out-of-agency service agreement, establishing a pre-zoning designation of RE-20, and authorizing submittal of an annexation application to LAFCO for a property located at 2509 Felicita Road. 33 Item6.

Resolution No. 2022-35
Exhibit “A”

Page 1 of 1 ends

Exhibit A

Legal Description of Property

That certain real property located in the County of San Diego, State of California, described as follows:

34 Item6.

EXEMPT FROM FEES pursuant to
Gov’t Code §§ 6103, 27383, and 27388.1
(filing requested/executed by municipality)

RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:

Planning Division
City of Escondido
201 North Broadway
Escondido, CA 92025-2798

This Space for Recorder’s Use Only
APN: 238-360-21-00

OUT-OF-AGENCY SERVICE AGREEMENT

This OUT-OF-AGENCY SERVICE AGREEMENT (“ Agreement”) is made and entered into this _____ day of ____________________, 2022, by and between the City of Escondido, a California municipal corporation (“City”) and Benjamin C. Elliot and Christie L. Elliot, husband and wife as joint tenants (collectively, “Owner”). (The City and Owner may each be referred to herein as a “Party” and collectively as the “Parties.”)

RECITALS

A. Owner possesses and owns that certain real property located outside the jurisdictional boundary of the City, within the unincorporated County of San Diego, as further described in Exhibit A to this Agreement, attached hereto and incorporated herein by this reference (“Property”).

B. Pursuant to California Government Code section 56133(a), the City may provide new or extended services outside its jurisdictional boundary only if it first requests and receives written approval from the San Diego County Local Agency Formation Commission (“LAFCO”).

C. Pursuant to California Government Code section 56133( b), LAFCO may authorize the City to provide new or extended services outside its jurisdictional boundary but within its sphere of influence in anticipation of a later change of organization.

D. In accordance with California Government Code section 56133 and LAFCO’s local policies, in a letter dated September 30, 2021, which is attached hereto as Exhibit B and incorporated herein by this reference (“ Conditional Approval Letter ”), LAFCO has provided a conditional approval for the City to establish contract wastewater service for the Property, limited to the existing one dwelling unit on the Property.

E. Among other conditions of LAFCO’s approval, Owner must file a landowner-petition application to annex the Property to the City.

F. The City and the Owner desire to enter into this Agreement so the City may provide wastewater service to the existi ng one dwelling unit on the Property, subject to Owner meeting all Resolution No. 2022-35
Exhibit "B"

Page 1 of 13 ends

35 Item6.
conditions of the Conditional Approval Letter and any conditions otherwise expressed in this Agreement.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants, promises, terms, and conditions set forth herein, the Parties hereby mutually agree as follows:

1. Recitals. The Recitals set forth above are included herein by reference as part of this Agreement and the Parties agree that said Recitals are essential facts to this Agreement.

2. Applicability of Government Code. This Agreement is made pursuant to the Cortese- Knox-Hertzberg Local Government Reorganization Act (California Government Code section 56000 et seq.) (“Act”) and is subject to all of the provisions of the Act , inc luding but not limited to Government Code section 56133.

3. Authority to Connect. Upon the Parties’ execution of this Agreement and Owner’s recordation of this Agreement in the County Recorder’s Office for San Diego County, and subject to all other terms and conditions of this Agreement, Owner may connect to the City’s sewer and water system (“Improvements”). Owner agrees to construct the Improvements in conformance with all applicable federal, state, and local laws and regulations. No construction of the Improvements shall occur without first securing all required permits and approvals from the City, County, or any other local agency or regulatory authority, and without first completing environmental review pursuant to the California Environmental Quality Act (“CEQA”).

4. Irrevocable Offer of Annexation . Owner hereby makes an irrevocable offer of annexation of the Property to the City. Owner waives any right of protest in the annexation of the Property to the City provided for under the Act or any other law or policy. Such waiver shall be binding on Owner and its heirs, successors in interests, and assigns.

5. Conditions of Approval. This Agreement shall be subject to the following conditions, requirements, and restrictions:
a. Owner agrees to meet all terms and conditions expressed in the Conditional Approval Letter, including each of the following:
(i.) Owner shall provide LAFCO a completed contractual service agreement form along with the required application filing fee. (ii.) Owner shall provide LAFCO a landowner -petition application to annex the Property to the City (“Annexation Petition”), along with the required filing fee. (iii.) Owner shall provide LAFCO a signed copy of this Agreement. b. Within 10 days after execution of this Agreement by all Parties, Owner shall record this Agreement with the Office of the County Recorder for San Diego County. c. Owner shall execute and record an agreement approved by LAFCO that consents to annexation of the Property into the City, which Agreement shall run with the land and inure to and bind all successors in interest to the Property. Owner shall undertake all prezoning and Resolution No. 2022-35
Exhibit "B"

Page 2 of 13 ends

36 Item6.
associated environmental review and pay all associated City and LAFCO fees related to the annexation of the Property.
d. As a condition to annexation, Owner shall apply to the City to have the Property prezoned, a discretionary act that will require environmental review. At the time Owner files an Annexation Petition, Owner shall file a formal application for prezoning with the City and shall diligently and in good faith prosecute such application to completion. e. Owner shall be responsible for all LAFCO and City fees and charges in relation to the application for prezoning , application for annexation, Improvements, future wastewater service connection, or otherwise in relation to this Agreement. f. This Agreement is limited to the provision of wastewater service to the existing one dwelling unit on the Property and shall not be construed to provide authority for the City’s provision of any additional service in relation to the Property.

6. No Pre-Commitment; Final Action Subject to Environmental Review. a. Notwithstanding any other provision of this Agreement, nothing herein shall commit or otherwise require the City, or be interpreted as requiring the City, to issue any permit , entitlement, or other approval in relation to the Improvements. Rather, the City and Owner acknowledge and agree that the City retains full discretionary authority with respect to the Improvements, and may approve, disapprove, modify, or condition the Improvements, or any portion thereof, as otherwise authorized by law. Owner acknowledges and agrees that it is proceeding at its own risk and expense until such time as all required permits, entitlements, or other approvals are approved and without assurance that any required permits, entitlements, or other approvals will be approved.
b. The City shall not enter into any agreement that will allow for the construction of the Improvements until there has been appropriate compliance with CEQA. The City, through the planning process with Owner as to the Improvements, will identify the actions and activities that would be necessary to construct the Improvements and thereby facilitate meaningful environmental review.

7. Term. This Agreement shal l commence on the Effective Date and shall remain in effect until the earlier of any of the following: (i) the Property is annexed into the City; (ii) September 30, 2022, unless extended by LAFCO in accordance with the terms of the Conditional Approval Letter; or (iii) the Agreement is terminated by the City if Owner fails to meet any condition stated herein.

8. Indemnification. Owner (including Owner’s agents, employees, contractors, and subcontractors, if any) shall hold harmless, defend (with counsel reasonably acceptable to the City), and indemnify the City, its boards, commissions, departments, officials, officers, agents, employees, and volunteers from and against any and all claims, demands, actions, causes of action, proceedings (including but not limited to legal and administrative proceedings of any kind), suits, fines, penalties, judgments, orders, levies, costs, expenses, liabilities, losses, damages, or injuries, in law or equity, including without limitation the payment of all consequential damages and attorney’s fees and other related litigation costs and expenses (collectively, “ Claims”), and any attorney’s, consultant, or expert fees and City staff costs for investigating or responding to any Claims, incurred in connection Resolution No. 2022-35
Exhibit "B"

Page 3 of 13 ends

37 Item6.
with or arising in whole or in part from this Agreement , the use of the Improvements by the Owner (including Owner’s agents, employees, invitees, contractors, and subcontractors, if any), the condition of the Improvements, or any related construction or other work undertaken on the Property, including without limitation (i) any death or bodily injury to a person; (ii) any injury to, loss, or theft of tangible or intangible property, including economic loss; or (iii) any other loss, damage, or expense sustained by the Owner in co nnection with any work or obligations performed in connection with this Agreement, except for any liability resulting from the active negligence , sole negligence, or willful misconduct of the City. The duty to defend the City as described in this Paragrap h 10 shall apply regardless of whether any Claims are groundless, fraudulent, or false. All obligations under this Paragraph 10 shall survive the termination of this Agreement.

9. Miscellaneous.

12.1 Governing Law. This Agreement and all rights and obligations arising out of it shall be construed in accordance with the laws of the State of California. Any litigation arising out of this Agreement shall be conducted only in the state or federal courts of San Diego County, California.

12.2 Entire Agreement. This Agreement, together with its attachments or other documents, if any, described or incorporated herein, contains the entire agreement and understanding concerning the subject of this Agreement and supersedes and replaces all prior negotiations, understandings, or proposed agreements, written or oral, except as otherwise provided herein. Each of the Parties hereto acknowledges that no other Party, nor the agents nor the attorneys for any Party, has made any promise, representation or warranty whatsoe ver, express or implied, not contained herein, to induce the execution of this Agreement and acknowledges that this Agreement has not been executed in reliance upon any promise, representation, or warranty not contained herein.

12.3 Amendment. This Agreement may not be amended except in a writing signed by all of the Parties hereto, and then only in the specific instance and for the specific purpose given.

Any such amendment shall be recorded with the Office of the County Recorder for the County of San Diego.

12.4 Independent Investigation. The Parties acknowledge that they have conducted an independent investigation of the facts concerning the subject matter of this Agreement. The Parties agree that the factual recitals are correct and expressly assume the risk that the true facts concerning the foregoing may differ from those currently understood by them.

12.5 Advice of Counsel. The Parties hereby acknowledge that they have executed this Agreement after having the opportunity to consult with, and receive the advice of, their own counsel.

12.6 Capacity. Each individual signing this Agreement represents and warrants that he or she has been authorized to do so by proper action of the Party on whose behalf he or she has signed.

12.7 Headings. Section headings are for reference purposes only and shall not be used for interpreting the meaning of any provisions of this Agreement.

12.8 Attorney’s Fees. In any action to enforce the terms of this Agreement, the Parties agree that the prevailing party shall be entitled to its reasonable attorney’s fees and all costs, Resolution No. 2022-35
Exhibit "B"

Page 4 of 13 ends

38 Item6.
fees, and expenses, including the fees of expert witnesses and consultants, whether or not such costs, fees, and expenses are recover able or allowed as costs under s ection 1033.5 of the California Code of Civil Procedure. In a ddition to the foregoing award of attorney’s fees and costs, the prevailing party shall be entitled to its attorney’s fees and costs incurred in any post -judgment proceedings to collect or enforce any judgment. This provision is separate and shall survive the merger of this provision into any judgment on this Agreement.

12.9 Counterparts. This Agreement may be executed on separate counterparts that, upon completion, may be assembled into and shall be construed as one document.

12.10 Severability. This Agreement shall be performed and shall be enforceable to the full extent allowed by applicable law, and the illegality, invalidity, waiver, or unenforceability of any provision of this Agreement shall not affect the legality, validity, applicability, or enforceability of the remaining provisions of this Agreement.

12.11 Notice. All notices, demands, approvals, or consents provided for in this Agreement shall be in writing and delivered to the appropriate Party at its address as follows:

If to the City:

Director of Community Development
City of Escondido
201 North Broadway
Escondido, CA 92025
If to Owner:

Benjamin C. and Christie L. Elliot
2509 Felicita Road
Escondido, CA 92029

Any notice, delivery, or other communication shall be effective and shall be deemed to be received by the other Party within five business days after the notice has been deposited in the U.S. Mail, duly registered or certified, with postage prepaid, and addressed as set forth above. Any Party may change the address information provided above by giving written notice to the other Party in the manner provided in this Agreement.

12.12 Covenants Run with Land . So long as this Agreement remains in effect, the obligations and benefits provided for in this Agreement shall run with the land obligated and benefited, respectively, and shall be binding on all parties having or acquiring any right, title, or interest in the Property or any part thereof. As such, it is the intent of the Parties that this Agreement and the promises, covenants, rights, and obligations set forth herein (i) shall be and are covenants running with the Property, encumbering the Property for the term of this Agreement, binding upon the Owner’s successors in title and all subsequent owners and operators of the Property; (ii) are not merely personal covenants of the Owner; and (iii) shall bind the Owner and its respective successors and assigns during the term of this Agreement. Further, the Owner shall ensure that any future transfer of interest in the Property is made subject to the terms of this Agreement, such that any future successor in title or owner or operator of the Property shall be bound by the terms herein.

Resolution No. 2022-35
Exhibit "B"

Page 5 of 13 ends

39 Item6.

12.13 Effective Date . Unless a dif ferent date is provided in this Agreement, the effective date of this Agreement shall be the latest date of execution set forth by the names of the signatories below.

IN WITNESS WHEREOF, t his Agreement is executed by the Parties or their duly authorized representatives as of the Effective Date:

CITY OF ESCONDIDO

Date: By
Paul McNamara, Mayor

OWNER

Date: By
Benjamin C. Elliott

Date: By
Christie L. Elliott

(ABOVE SIGNATURES MUST BE NOTARIZED; ACKNOWLEDGMENT PAGES FOLLOW)

APPROVED AS TO FORM:

OFFICE OF THE CITY ATTORNEY
Michael R. McGuinness, City Attorney

Resolution No. 2022-35
Exhibit "B"

Page 6 of 13 ends

40 Item6.

ACKNOWLEDGMENT

STATE OF CALIFORNIA ]

COUNTY OF ______________________ ]

On ___________________________________, before me, ______________________________, a Notary Public, personally appeared _______________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: ________________________________________ (Seal)

City of Escondido

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

Resolution No. 2022-35
Exhibit "B"

Page 7 of 13 ends

41 Item6.

ACKNOWLEDGMENT

STATE OF CALIFORNIA ]

COUNTY OF ______________________ ]

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: ________________________________________ (Seal)

Benjamin C. Elliott

Resolution No. 2022-35
Exhibit "B"

Page 8 of 13 ends

42 Item6.

ACKNOWLEDGMENT

STATE OF CALIFORNIA ]

COUNTY OF ______________________ ]

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: ________________________________________ (Seal)

Christie L. Elliott

Resolution No. 2022-35
Exhibit "B"

Page 9 of 13 ends

43 Item6.

Exhibit A

Legal Description of Property

That certain real property located in the County of San Diego, State of California, described as follows:

Resolution No. 2022-35
Exhibit "B"

Page 10 of 13 ends

44 Item6.

Exhibit B

Conditional Approval Letter

Resolution No. 2022-35
Exhibit "B"

Page 11 of 13 ends

45 Item6.

San Diego County
Local Agency Formation Commission
Regional Service Planning | Subdivision of the State of California September 30, 2021
Delivered Electronically:

Mr. Benjamin Elliott
2509 Felicita Road
Escondido California 92029
[email protected]
SUBJEC
T: Notice of Conditional Approval:

Contractual Wastewater Service Agreement for the City of Escondido to Serve 2509 Felicita Road (Assessor Parcel Number 238-360-21) Mr. Elliott:

This letter serves as formal notice of San Diego County Local Agency Formation Commission (LAFCO)’s conditional approval for the City of Escondido to establish contract wastewater service for your property located at 2509 Felicita Road. This conditional approval is authorized under my powers pursua nt to Government Code Section 56133 and adopted LAFCO policy and substantiated based on a review of written documentation showing the existing septic system has failed and poses a threat to public health. The conditional approval extends one calendar year unless extended and follows a written recommendation from the County of San Diego Department of Environmental Health and Quality to immediately transition the property to public wastewater should it be available.

The con
ditional approval is limited to authorizing the City of Escondido to enter into an outside wastewater service agreement for only the existing residential dwelling unit comprising the affected territory. All approval conditions follow.

1. Receipt by San Diego LAFCO of a completed contractual service agreement form along with an application filing fee in the amount of $480.38. This amount reflects a 75% fee reduction given documentation of a public health threat. The form is available online.

Resolution No. 2022-35
Exhibit "B"

Page 12 of 13 ends

46 Item6.

2. Receipt by San Diego LAFCO of a landowner-petiti on application to annex the affected territory to the City of Escondido along with a filing fee in the amount of $2,612.06.

This amount includes a related boundary action involving County Service Area No. 135 and reflects a 75% fee reduction given documentation of a public health threat. The form is available online.

3. Receipt by San Diego LAFCO of a signed contractual wastewater service agreement between you as the landowner for the affected territory and the City of Escondido.

The agreement must specify service is limited to the existing one dwelling unit.

Given
the underlying urgency, I agree to waive the requirement of a map and geographic description of the affected territory being submitted to LAFCO in conjunction with the other terms listed above. These documents, nonetheless, will be required to be submitted before an annexation proposal is presented for consideration by the Commission within the referenced one-year tim
e frame.

Separat
e written confirmation of the completion of all conditions tied to this approval will be provided as appropriate and serve as official notice of your legal allowance to proceed with the contractual service with the City of Escondido.

Should you have any questions in the interim, please contact LAFCO Analyst Priscilla Allen by telephone or email at [email protected].

On behalf of the Executive Officer,

Priscilla Allen,
Analyst I

cc: Angela Morrow, City of Escondido
Paul Bingham, City of Escondido
Craig Caes, County of San Diego – DEH
Keene Simonds, San Diego LAFCO

2 | P a g e
Resolution No. 2022-35
Exhibit "B"

Page 13 of 13 ends

47 Item6.

RESOLUTION NO. 2022-36

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR TO

EXECUTE AN OUT -OF-AGENCY SERVICE AGREEMENT,

MAKING APPLICATION TO THE LOCAL AGENCY

FORMATION COMMISSION FOR SAID AGREEMENT, AND
ESTABLISHING A PRE-ZONING DESIGNATION OF RE -20,
FOR A PROPERTY LOCATED AT 450 BEAR VALLEY

PARKWAY

Case No. PL21-0385

WHEREAS, the City of Escondido (“City”) has received a request to provide sewer service to a property located at 450 Bear Valley Parkway (“Property”); and WHEREAS, the Property is all that real property described in Exhibit “A” hereto; and WHEREAS, the City Council of the City of Escondido desires to make application to the San Diego County Local Agency Formation Commission (“LAFCO”) for an out-of-agency service agreement (“Agreement”), attached hereto as Exhibit “B,” for the provision of sewer service to the Property; and WHEREAS, the Property has a General Plan land use designation of Estate II, which is implemented through a zoning designation of RE-20; and
WHEREAS, the project is categorically exempt from further review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines s ection 15303, “New Construction or Conversion of Small Structures.”
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido , California , as follows:

1. That the above recitations are true.

3. That application is hereby made to LAFCO for the Agreement.

4. That this Agreement is necessary in order for the area to receive urban services available from the City.

5. That LAFCO is hereby requested to undertake proceedings related to the Agreement described in this resolution.

6. That t his proposal is made pursuant to the Cortese/Knox/Hertzb erg Local Government Reorganization Act of 2000, Division 3, commencing with Section 56000 of the Government Code of the State of California.

7. That the City Clerk of the City of Escondido is hereby authorized and directed to file a certified copy of this resolution to the executive officer of LAFCO. 9 That the City Council approves Resolution No. 2022-36, authorizing the Mayor to execute the Agreement, making application to LAFCO for the Agreement, and establishing a pre-zoning designation of RE-20, for a property located at 450 Bear Valley Parkway. 49 Item6.

Resolution No. 2022-36
Exhibit “A”

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Exhibit A

Legal Description of Property

That certain real property in the County of San Diego, State of California, described as follows:

LOT 5 OF GREEN ACRES ESTATES, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 3036, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, NOVEMBER 4, 1953.

50 Item6.

EXEMPT FROM FEES pursuant to
Gov’t Code §§ 6103, 27383, and 27388.1
(filing requested/executed by municipality)

RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:

Planning Division
City of Escondido
201 North Broadway
Escondido, CA 92025-2798

This Space for Recorder’s Use Only
APN: 239-060-05-00

OUT-OF-AGENCY SERVICE AGREEMENT

This OUT-OF-AGENCY SERVICE AGREEMENT (“ Agreement”) is made and entered into this _____ day of ____________________, 2022, by and between the City of Escondido, a California municipal corporation (“ City”) and Ahmed Abufares, an individual (“Owner”). (The City and Owner may each be referred to herein as a “Party” and collectively as the “Parties.”)

RECITALS

D. In accordance with California Government Code section 56133 and LAFCO’s local policies, in a letter dated August 20, 2021, which is attached hereto as Exhibit B and incorporated herein by this reference (“Conditional Approval Letter”), LAFCO provided a conditional approval for the City to establish contract wastewater service for the Property, limited to the existing one dwelling unit on the Property. On February 7, 2022, LAFCO took official action to amend the Conditional Approval Letter by removing the requirement to annex the Property into the City within one-year and instead require Owner to record an irrevocable offer to annex the Property into the City, which shall be included with this Agreement and which shall be utilized if annexation of the Property is proposed or required in the future by the City or made as a condition by LAFCO. (The conditions referenced in the Conditional Approval Letter, subject to the amendments adopted by LAFCO at its February 7, 2022 meeting, are collectively referred to in this Agreement as the “ LAFCO Conditions.”)
Resolution No. 2022-36
Exhibit "B"

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51 Item6.

E. The City and the Owner desire to enter into this Agreement so the City may provide wastewater service to the existing one dwelling unit on the Property, subject to Owner meeting all of the LAFCO Conditions and any conditions otherwise expressed in this Agreement.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants, promises, terms, and conditions set forth herein, the Parties hereby mutually agree as follows:

1. Recitals. The Recitals set forth above are included herein by reference as part of this Agreement and the Parties agree that said Recitals are essential facts to this Agreement.

2. Applicability of Government Code. This Agreement is made pursuant to the Cortese- Knox-Hertzberg Local Government Reorganization Act (California Government Code section 56000 et seq.) (“Act”) and is subject to all of the provisions of the Act , including but not limited to Government Code section 56133.

4. Irrevocable Offer of Annexation. Pursuant to the LAFCO Conditions, Owner hereby makes an irrevocable offer of annexation of the Property to the City. Owner waives any right of protest in the annexation of the Property to the City provided for under the Act or any other law or policy. Such waiver shall be binding on Owner and its heirs, successors in interests, and assigns.

Any future annexation shall occur only after proposed or required by the City or made as a condition by LAFCO.

5. Conditions of Approval. This Agreement shall be subject to all LAFCO Conditions:
a. Owner agrees to meet all LAFCO Conditions, including each of the following:
(i.) Owner shall provide LAFCO a completed contractual service agreement form along with the required application filing fee. (ii.) Owner shall provide LAFCO a signed copy of this Agreement. b. Within 10 days after execution of this Agreement by all Parties, Owner shall record this Agreement with the Office of the County Recorder for San Diego County. c. Prior to any future annexation of the Property as contem plated by this Agreement, Owner agrees to each of the following:
(i) Owner shall provide LAFCO a landowner -petition application to Resolution No. 2022-36
Exhibit "B"

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52 Item6.
annex the Property to the City (“ Annexation Petition”), along with the required filing fee. Owner shall execute and record an ag reement approved by LAFCO that consents to annexation of the Property into the City, which Agreement shall run with the land and inure to and bind all successors in interest to the Property. Owner shall undertake all prezoning and associated environmental review and pay all associated City and LAFCO fees related to the annexation of the Property. (ii) As a condition to annexation, Owner shall apply to the City to have the Property prezoned, a discretionary act that will require environmental review. At the tim e Owner files an Annexation Petition, Owner shall file a formal application for prezoning with the City and shall diligently and in good faith prosecute such application to completion. d. Owner shall be responsible for all LAFCO and City fees and charges in relation to the application for prezoning , application s for annexation, Improvements, future wastewater service connection, or otherwise in relation to this Agreement. e. This Agreement is limited to the provision of wastewater service to the existing one dwelling unit on the Property and shall not be construed to provide authority for the City’s provision of any additional service in relation to the Property.

6. No Pre-Commitment; Final Action Subject to Environmental Review. a. Notwithstanding any other provision of this Agreement, nothing herein shall commit or otherwise require the City, or be interpreted as requiring the City, to issue any permit , entitlement, or other approval in relation to the Improvements. Rather, the City and Owner acknowledge and a gree that the City retains full discretionary authority with respect to the Improvements, and may approve, disapprove, modify, or condition the Improvements, or any portion thereof, as otherwise authorized by law. Owner acknowledges and agrees that it is proceeding at its own risk and expense until such time as all required permits, entitlements, or other approvals are approved and without assurance that any required permits, entitlements, or other approvals will be approved.
b. The City shall not enter into any agreement that will allow for the construction of the Improvements until there has been appropriate compliance with CEQA. The City, through the planning process with Owner as to the Improvements, will identify the actions and activities that would be necessary to construct the Improvements and thereby facilitate meaningful environmental review.

7. Term. This Agreement shall commence on the Effective Date and shall remain in effect until the earlier of any of the following: (i) the Property is annexed into the City; or (ii) the Agreement is terminated by the City if Owner fails to meet any condition stated herein.

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53 Item6.
expert fees and City staff costs for investigating or responding to any Claims, incurred in connection with or arising in whole or in part from this Agreement , the use of the Improvements by the Owner (including Owner’s agents, employees, invitees, contractors, and subcontractors, if any), the condition of the Improvements, or any related construction or other work undertaken on the Property, including without limitation (i) any death or bodily injury to a person; (ii) any injury to, loss, or theft of tangible or intangible property, including economic loss; or (iii) any other loss, damage, or expense sustained by the O wner in connection with any work or obligations performed in connection with this Agreement, except for any liability resulting from the active negligence , sole negligence, or willful misconduct of the City. The duty to defend the City as described in thi s Paragraph 8 shall apply regardless of whether any Claims are groundless, fraudulent, or false. All obl igations under this Paragraph 8 shall survive the termination of this Agreement.

9. Miscellaneous.

12.2 Entire Agreement. This Agreement, together with its attachments or other documents, if any, described or incorporated herein, contains the entire agreement and understanding concerning the subject of this Agreement and super sedes and replaces all prior negotiations, understandings, or proposed agreements, written or oral, except as otherwise provided herein. Each of the Parties hereto acknowledges that no other Party, nor the agents nor the attorneys for any Party, has made any promise, representation or warranty whatsoever, express or implied, not contained herein, to induce the execution of this Agreement and acknowledges that this Agreement has not been executed in reliance upon any promise, representation, or warranty not contained herein.

12.3 Amendment. This Agreement may not be amended except in a writing signed by all of the Parties hereto, and then only in the specific instance and for the specific purpose given.

Any such amendment shall be recorded with the Office of the County Recorder for the County of San Diego.

12.4 Independent Investigation. The Parties acknowledge that they have conducted an independent investigation of the facts concerning the subject matter of this Agreement. The Parties agree that the factual rec itals are correct and expressly assume the risk that the true facts concerning the foregoing may differ from those currently understood by them.

12.5 Advice of Counsel. The Parties hereby acknowledge that they have executed this Agreement after having the oppo rtunity to consult with, and receive the advice of, their own counsel.

12.6 Capacity. Each individual signing this Agreement represents and warrants that he or she has been authorized to do so by proper action of the Party on whose behalf he or she has signed.

12.7 Headings. Section headings are for reference purposes only and shall not be used for interpreting the meaning of any provisions of this Agreement.

12.8 Attorney’s Fees. In any action to enforce the terms of this Agreement, the Resolution No. 2022-36
Exhibit "B"

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54 Item6.

Parties agree that the prevailing party shall be entitled to its reasonable attorney’s fees and all costs, fees, and expenses, including the fees of expert witnesses and consultants, whether or not such costs, fees, and expenses are recover able or allowed as costs under s ection 1033.5 of the California Code of Civil Procedure. In addition to the foregoing award of attorney’s fees and costs, the prevailing party shall be entitled to its attorney’s fees and costs incurred in any post -judgment proceedings to collect or enforce any judgment . This provision is separate and shall survive the merger of this provision into any judgment on this Agreement.

12.9 Counterparts. This Agreement may be executed on separate counterparts that, upon completion, may be assembled into and shall be construed as one document.

12.11 Notice. All notices, demands, approvals, or consents provided for in this Agreement shall be in writing and delivered to the appropriate Party at its address as follows:

If to the City:

Director of Community Development
City of Escondido
201 North Broadway
Escondido, CA 92025
If to Owner:

Ahmed Abufares
450 Bear Valley Parkway
Escondido, CA 92025

Resolution No. 2022-36
Exhibit "B"

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55 Item6.

IN WITNESS WHEREOF, t his Agreement is executed by the Parties or their duly authorized representatives as of the Effective Date:

CITY OF ESCONDIDO

Date: By
Paul McNamara, Mayor

OWNER

Date: By
Ahmed Abufares

(ABOVE SIGNATURES MUST BE NOTARIZED; ACKNOWLEDGMENT PAGES FOLLOW)

APPROVED AS TO FORM:

OFFICE OF THE CITY ATTORNEY
Michael R. McGuinness, City Attorney

Resolution No. 2022-36
Exhibit "B"

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56 Item6.

ACKNOWLEDGMENT

STATE OF CALIFORNIA ]

COUNTY OF ______________________ ]

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: ________________________________________ (Seal)

City of Escondido

Resolution No. 2022-36
Exhibit "B"

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57 Item6.

ACKNOWLEDGMENT

STATE OF CALIFORNIA ]

COUNTY OF ______________________ ]

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: ________________________________________ (Seal)

Ahmed Abufares

Resolution No. 2022-36
Exhibit "B"

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58 Item6.

Exhibit A

Legal Description of Property

That certain real property in the County of San Diego, State of California, described as follows:

LOT 5 OF GREEN ACRES ESTATES, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 3036, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, NOVEMBER 4, 1953.

Resolution No. 2022-36
Exhibit "B"

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59 Item6.

Exhibit B

Conditional Approval Letter

Resolution No. 2022-36
Exhibit "B"

Page 10 of 14 ends

60 Item6.

Administration
Keene Simonds, Executive Officer
County Operations Center
9335 Hazard Way, Suite 200
San Diego, California 92123
T 858.614.7755 F 858.614.7766
www.sdlafco.org
Vice Chair Jim Desmond
County of San Diego
Nora Vargas
County of Sa
n Diego
Joel Anderson, Alt.

Coun
ty of San Diego
San Diego County
Local Agency Formation Commission
Regional Service Planning | Subdivision of the State of California Jo MacKenzie
Vista Irrigation
Barry Willis
Alpine Fire Prot
ection
David A. Drake, Alt.

Ri
ncon del Diablo
Mary Casillas Salas
City of Chula Vista
Paul McNamara
City of Escondido
Kristi Becker, Alt.

City of Solona Beach
Chair Andy Vanderlaan
General Public
Harry Mathis, Alt.

Gene
ral Public
Chris Cate
City of San Diego
Marni von Wilpert, Al t.

City of San Diego
August 20, 2021
Delivered Electronically:

Mr. Adam Fares
450 Bear Valley Parkway
Escondido California 92025
adam@fares‐inc.com
SUBJECT: Notice of Conditional Approval:

Contractual Wastewater Service Ag
reement for the City of Escondido to
Serve 450 Bear Valley Parkway (Assessor Parcel Number 239‐060‐05) Mr. Fares:

This letter serves as formal notice of San Diego County Local Agency Formation Commission (LAFCO)’s conditional approval for the City of Escondido to establish contract wastewater service for your property located at 450 Bear Valley Park way. This conditional approval is
authorized under my powers pursuant to Government Code Section 56133 and adopted LAFCO policy and substantiated based on a review of written documentation showing the existing septic system has failed and poses a threat to public health. The conditional approval extends one calendar year unless extended and follows a written recommendation from the County of San Diego Department of Environmental Health and Quality to immediately transition the property to a public wastewater should it be available.

The conditional approval is limited to authorizing the City of Escondido to enter into an outside
wastewater service agreement for only the existing residential dwelling unit comprising the affected territory. All approval conditions follow.

Resolution No. 2022-36
Exhibit "B"

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61 Item6.

San Diego LAFCO
Notice of Conditional Approval: Outside Wastewater Service Agreement Between City of Escondido and 450 San Pasqual Parkway August 20, 2021

2 | Page

2. Receipt by San Diego LAFCO of a landowner‐petition application to annex the affected territory to the City of Escondido along with a filing fee in the amount of $2,612.06.

This amount includes a related boundary action involving County Service Area No. 135 and reflects a 75% fee reduction given documentation of a public health threat. The form is available online.

3. Receipt by
San Diego LAFCO of a signed contractual wastewater service agreement between you as the landowner for the affected territory and the City of Escondido.

The agreement must specify service is limited to the existing one dwelling unit.

Given the underlying urgency, I agree to waive the requirement of a map and geographic description of the affected terr
itory being submitted to LAFCO in conjunction with the other terms listed above. These documents, nonetheless, will be required to be submitted before an annexation proposal is presented for consideration by the Commission within the referenced one‐year timeframe.

Separate written confirmation of the completion of all conditions tied to this approval will be provided as appropriate and serve as official notice of your legal allowance to proceed with the contractual service with the City of Escondido.

Should you have any questions in the interim, please
contact LAFCO Analyst Priscilla Allen by
telephone or email at [email protected].

Sincerely,

Keene Simonds
Executive Officer

cc: Angela Morrow, City of Escondido
Paul Bingham, City of Escondido
Craig Caes, County of San Diego – DEH
Priscilla Allen, San Diego LAFCO

Resolution No. 2022-36
Exhibit "B"

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62 Item6.

CERTIFICATE OF ADMINISTRATIVE APPROVAL OF A

CONTRACTUAL WASTEWATER SERVICE AGREEMENT
City of Escondido / Adam Fares
(LAFCO File No. OAS21-07)
AUGUST 20, 2021
In accordance with California Government Code Section 56133, the San Diego County Local Agency Formation Commission (LAFCO) authorizes the City of Escondido to immediately provide extraterritorial wastewater service by contract to 450 Bear Valley Parkway. The subject property is owned by Adam Fares and comprises one unincorporated parcel identified by the County of San Diego Assessor’s Office as 239-060-05. The authorized service is limited to supporting the approximate 1,750 square foot single-family residence currently developed on the subject property.

The contracted wastewater service agreement authorization terms in one year – August 20, 2022 – from the date of its administrative approval by the LAFCO Executive Officer.

The contracted wastewater service agreement, however, shall continue thereafter if an irrevocable offer to annex is signed and recorded by the landowner should it be proposed in the future by the City of Escondido or made as a condition by LAFCO.

A map of the subject property is attached.

Confirmation:

KEENE SIMONDS
Executive Officer
February 10, 2022
Resolution No. 2022-36
Exhibit "B"

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63 Item6.
5 5
5 5 Classical Academy
Bear Valley Middle
L. R. Green Elementary

PEET LN

CANYON RD

NABAL ST

MARY LN

ROYAL CREST DR

HAAS ST

SUNSET DR

PASATIEMPO GLEN

LAURA LN

CASTANEDA DR

LA SERENA

GIANELLI LN

LAS PALMAS AV

CANTEGRA GLEN

BROOK CANYON RD
5 5
5 5 Classical Academy
Bear Valley Middle
L. R. Green Elementary

PEET LN

CANYON RD

NABAL ST

MARY LN

ROYAL CREST DR

HAAS ST

SUNSET DR

PASATIEMPO GLEN

LAURA LN

CASTANEDA DR

LA SERENA

GIANELLI LN

LAS PALMAS AV

CANTEGRA GLEN

BROOK CANYON RD

BEAR VALLEY PY

PEET LN

OLD SPANISH TL

VERANO PL
Source: Esri, DigitalGlobe, GeoEye,
Earthstar Geographics, CNES/Airbus DS,
USDA, USGS, AeroGRID, IGN, and the GIS
User CommunityOAS21-07

CONTRACTUAL WASTEWATER SERVICE AGREEMENT FOR
THE CITY OF ESCONDIDO TO SERVE 450 BEAR VALLEY
PARKWAY (APN 239-060-05)
Proposal Area
City of Escondido
SOI = Sphere of Influence

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CHULA VISTA
SAN
DIEGO

ESCONDIDO
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SAN DIEGO COUNTY

OCEANSIDE

RIVERSIDE COUNTY
Proposal Area

MAP AREA
o
0 0.2 0.40.1
Miles
City of Escondido
Created by Dieu Ngu -- 9/14/2021F:\GIS\Vicinity_Maps\agendamaps2021\21-07 OAS Escondido Vicinity map.mxd This map is provided without warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability and fitness for a particular purpose. Copyright LAFCO and SanGIS. All Rights Reserved.This product may contain information from the SANDAG Regional Information System which cannot be reproduced without the written permission of SANDAG. This map has been prepared for descriptive purposes only and is considered accurate according to SanGIS and LAFCO data.

Map Area all within
City of Escondido SOI
Resolution No. 2022-36
Exhibit "B"

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64 Item6.

STAFF REPORT

March 2, 2022
File Number 0170-57

SUBJECT

APPROVAL OF CALPERS INDUSTRIAL DISABILITY RETIREMENT FOR POLICE SERGEANT FRED CHEATHAM –

DEPARTMENT
Human Resources

RECOMMENDATION
Request the City Council adopt Resolution No. 202 2-37, approving the California Public Employees’ Retirement System (“CalPERS”) Industrial Disability Retirement for Police Sergeant Fred Cheatham.

Staff Recommendation: Approval (Human Resources Department: Jessica Perpetua) Presenter: Jessica Perpetua

FISCAL ANALYSIS
None.

PREVIOUS ACTION
None.

BACKGROUND
Mr. Cheatham filed for Industrial Disability Retirement on November 15, 2021. He was employed by the City of Escondido for 24 years prior to a Service Retirement Pending an Industrial Disability Retirement.

His last day worked was on December 30, 2021. The basis for Mr. Cheatham’s Service Pending Industrial Disability Retirement application is confirmed by the medical reports received dated October 28, 2021 and November 9, 2021 from Dr. Ramin Raiszadeh. Mr. Cheatham’s condition is orthopedic in nature.

Accordingly, Mr. Cheatham is incapacitated within the meaning of the Public Employees’ Retirement Law for performance of his usual and customary duties in the position of Police Sergeant.

Under state law, CalPERS requires the City Council to adopt a resolution stating that competent medical evidence supports the granting of an Industrial Disability Retirement. Based on medical evidence, staff recommends the City Council adopt Resolution No. 2022 -37, approving the CalPERS Industrial Disability Retirement for Sergeant Fred Cheatham to be effective December 31, 2021.

RESOLUTIONS
A. Resolution No. 2022-37

65 Item7.

RESOLUTION NO. 2022-37

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, APPROVING THE CALPERS

INDUSTRIAL DISABILITY RETIREMENT FOR FORMER

POLICE SERGEANT FRED CHEATHAM

WHEREAS, the City of Escondido (the “City”) is a contracting agency of the California Public Employees’ Retirement System (“CalPERS”); and
WHEREAS, the California Public Employees’ Retirement Law (Government Code Section § 20000 et seq.) (“California law”) requires that the City determine whether an employee classified as a local safety member is disabled for purpose of the California law and whether such disability is “industrial” within the meaning of such law; and
WHEREAS, Fred Cheatham (“Employee”) filed an application with CalPERS on November 15, 2021, for a se rvice pending industrial disability retirement due to an orthopedic injury of the cervical and lumbar; and
WHEREAS, the Employee, was employed by the City in the position of Police Sergeant; and WHEREAS, the City Council of the City of Escondido has reviewed the medical and other evidence relevant to this industrial disability.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.
. 2. That the City Council does hereby find and determine that Employee is incapacitated within the meaning of the California Public Employees’ Retirement Law for performance of his duties in the position of Police Sergeant.
66 Item7.

3. That the City Council certifies Resolution No. 2022-37 in accordance with Government Code Section § 21156, that this determination was made on the basis of competent medical opinion, and was not used as a substitute for the disciplinary process.

4. That the Employee had filed a Workers’ Compensation claim for his disabling condition. The City accepted the Employee’s Workers’ Compensation claim.

5. That neither Employee nor the City of Escondido has applied to the Worker’s Compensation Appeals Board for a determination pursuant to Government Code Section § 21166 whether such disability is industrial.

6. That the Employee’s last day on paid status was December 30, 2021; the Employee was separated on December 31, 2021, with an effective date of retirement December 31, 2021.

7. That there is not a possibility of third-party liability.

8. That the City will not make any monthly advanced disability pension payments.

9. That the primary disabling condition is an orthopedic injury to his lumbar and cervical neck, and arose out of and in the course of employment.

10. That there is competent medical opinion certifying the disabling condition to be permanent.

11. That based on information and belief, and on the information provided by City staff, the City Council certifies under penalty of perjury that all statements in this Resolution are true and correct. 67 Item7.

STAFF REPORT

March 2, 2022
File Number 0170-57

SUBJECT
APPROVAL OF CALPERS INDUSTRIAL DISABILITY RETIREMENT FOR POLICE OFFICER ROY F. HUSTON JR. –

DEPARTMENT
Human Resources

RECOMMENDATION
Request the City Council adopt Resolution No. 2022-38, approving the California Public Employees’ Retirement System (CalPERS) Industrial Disability Retirement for Police Officer Roy F. Huston Jr.

Staff Recommendation: Approval (Human Resources Department: Jessica Perpetua) Presenter: Jessica Perpetua

FISCAL ANALYSIS
None.

PREVIOUS ACTION
None.

BACKGROUND
Mr. Huston filed for Industrial Disability Retirement on September 27 , 2021, as a 55-year-old Police Officer. He was employed by the City of Escondido for 31 years prior to a Service Retirement Pending and Industrial Disability Retirement . The basis for Mr. Huston’s Service Pending Industrial Disability Retirement application is confirmed by medical reports from Dr. Richard Greenfield. Mr. Huston’s condition is orthopedic in nature (right knee). Accordingly, Mr. Huston is incapacitated within the meaning of the Public Employee’s Retirement Law for performance of his usual and customary duties in the position of Police Officer.

Under state law, CalPERS requires the City Council to adopt a resolution stating that competent medical evidence supports the granting of an Industrial Disab ility Retirement. Based on medical evidence, staff recommends the City Council adopt Resolution No. 2022 -38, approving the CalPERS Industrial Disability Retirement for Officer Roy F. Huston Jr. to be effective November 12, 2021.

RESOLUTIONS
A. Resolution No. 2022-38

68 Item8.

RESOLUTION NO. 2022-38

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, APPROVING THE CALPERS

INDUSTRIAL DISABILITY RETIREMENT FOR FORMER
POLICE OFFICER ROY F. HUSTON JR.

WHEREAS, the City of Escondido (the “City”) is a contracting agency of the California Public Employees’ Retirement System (“CalPERS”); and
WHEREAS, the California Public Employees’ Retirement Law (Government Code Section § 20000 et seq.) (“California law”) requires that the City determine whether an employee classified as a local safety member is disabled for purpose of the California law and whether such disability is “industrial” within the meaning of such law; and
WHEREAS, Roy F. Huston Jr. (“Employee”) filed an application with CalPERS on September 27, 2021, for a service pending industrial disability retirement due to an orthopedic injury (right knee); and WHEREAS, the Employee, was employed by the City in the position of Police Officer; and WHEREAS, the City Council of the City of Escondido has reviewed the medical and other evidence relevant to this industrial disability.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

2. That the City Council does hereby find and determine that Employee is incapacitated within the meaning of the California Public Employees’ Retirement Law for performance of his duties in the position of Police Officer.
69 Item8.

3. That the City Council certifies Resolution No. 2022-38 in accordance with Government Code Section § 21156, that this determination was made on the basis of competent medical opinion, and was not used as a substitute for the disciplinary process.

4. That the Employee had filed a Workers’ Compensation claim for his disabling condition. The City accepted the Employee’s Workers’ Compensation claim.

6. That the Employee’s retirement date will be effective November 12, 2021, and his last day on paid status was November 11, 2021.

7. That there is not a possibility of third-party liability.

8. That the City will not make any monthly advanced disability pension payments.

9. That the primary disabling condition is an orthopedic right knee injury, and arose out of and in the course of employment.

10. That there is competent medical opinion certifying the disabling condition to be permanent.

11. That based on information and bel ief, and on the information provided by City staff, the City Council certifies under penalty of perjury that all statements in this Resolution are true and correct. 70 Item8.

STAFF REPORT

March 2, 2022
File Number 0170-57

SUBJECT
APPROVAL OF CALPERS INDUSTRIAL DISABILITY RETIREMENT FOR POLICE CAPTAIN JUSTIN F.

MURPHY –

DEPARTMENT
Human Resources

RECOMMENDATION
Request the City Council adopt Resolution No. 2022-39, approving the California Public Employees’ Retirement System (“CalPERS”) Industrial Disability Retirement for Police Captain Justin F. Murphy.

Staff Recommendation: Approval (Human Resources Department: Jessica Perpetua) Presenter: Jessica Perpetua

FISCAL ANALYSIS
None.

PREVIOUS ACTION
None.

BACKGROUND
Mr. Murphy filed for Industrial Disability Retirement on February 1, 2022, as a 50 year old Police Captain.

He has been employed by the City of Escondido for 23 years. The basis for Mr. Murphy’s Industrial Disability Retirement application is confirmed by medical reports from Dr. R amin Raiszadeh . Mr.

Murphy’s condition is orthopedic in nature (lumbar). Accordingly, Mr. Murphy is incapacitated within the meaning of the Public Employee’s Retirement Law for performance of his usual and customary duties in the position of Police Captain.

Under state law, CalPERS requires the City Council to adopt a resolution stating that competent medical evidence supports the granting of an Industrial Disability Retirement. Based on medical evidence, staff recommends the City Council adopt Resolution No. 2022 -39, approving the CalPERS Industrial Disability Retirement for Captain Justin F. Murphy to be effective March 12, 2022.

RESOLUTIONS
A. Resolution No. 2022-39

71 Item9.

RESOLUTION NO. 2022-39

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, APPROVING THE CALPERS

INDUSTRIAL DISABILITY RETIREMENT FOR POLICE
CAPTAIN JUSTIN F. MURPHY

WHEREAS, the City of Escondido (the “City”) is a contracting agency of the California Public Employees’ Retirement System (“CalPERS”); and
WHEREAS, the California Public Employees’ Retirement Law (Government Code Section § 20000 et seq.) (“California law”) requires that the City determine whether an employee classified as a local safety member is disabled for purpose of the California law and whether such disability is “industrial” within the meaning of such law; and
WHEREAS, Justin F. Murphy (“Employee”) filed an application with CalPERS on February 1, 2022, for an Industrial Disability Retirement due to an orthopedic injury of the lumbar; and WHEREAS, the Employee, is employed by the City in the position of Police Captain; and WHEREAS, the City Council of the City of Escondido has reviewed the medical and other evidence relevant to this industrial disability.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

3. That the City Council certifies Resolution No. 2022-39 in accordance with Government Code Section § 21156, that this determination was made on the basis of competent medical opinion, and was not used as a substitute for the disciplinary process.

4. That the Employee had filed a Workers’ Compensation claim for his disabling condition. The City accepted the Employee’s Workers’ Compensation claim.

6. That the Employee’s retirement date will be effective Ma rch 12, 2022, and his last day on paid status is March 10, 2022.

7. That there is not a possibility of third-party liability.

8. That the City will make monthly Advanced Disability Pension Payments of $ 7,455.01, beginning April 1, 2022, until CalPERS begins making retirement payments. The City will also make a one - time advance disability payment of $4,809.68, for the remaining twenty day s of March 2022. CalPERS will send the reimbursement check to: City of Escondido Workers’ Compensation Department 201 N. Broadway Escondido, CA 92025.

9. That the primary disabling condition is an orthopedic injury to his lumbar, and arose out of and in the course of employment.

10. That there is competent medical opinion certifying the disabling condition to be permanent.

STAFF REPORT

March 2, 2022
File Number 0600-10

SUBJECT

CITYWIDE FIREWALL REPLACEMENT

DEPARTMENT
Information Systems

RECOMMENDATION
Request the City Council adopt Resolution No. 2022-40 authorizing the Deputy City Manager/ Director of Information Systems, or his designee, to procure and establish a citywide firewall replacement.

Staff Recommendation: Approval (Information Systems: Rob Van De Hey) Presenter: Ken Conradie, Network Manager

FISCAL ANALYSIS
After analyzing several of the industry’s top market solutions, comparing them extensively, and reaching out to industry peer s to solicit feedback and review, it has been determined that the City of Escondido (“City”) should upgrade its existing firewall by purchasing two Palo Alto PA -32060 Next Generation Firewalls which will cost $250,000.00 . The decision matrix and a more comprehensive cost analysis is located within Attachment “A.” The majority of this funding, $200,000, was approved by Council through American Rescue Plan Act (ARPA) funding on September 29, 2021 in Resolution No. 2021-146. The remainder of the purchase costs will be drawn from the Internal Services Funds from the Information Systems department.

BACKGROUND
The City’s current SonicWALL firewalls are deployed at the core of the network and are the most important pieces of cyber security technology currently in place to protect the City’s technology infrastructure. These firewalls provide the connectivity, security, and resiliency that the City needs to operate its municipal area network and effectively deliver digital municipal services to our community. Due to high costs and budget challenges we have been trying to delay our hardw are replacement cycle of these units to ensure the highest return on investment (ROI) possible. When it comes to cyber security, the technology moves very quickly and while the software that these firewalls run is current, the hardware itself has aged to the point that it cannot effectively handle the increasing demands of the City. Staff is seeking approval to purchase the next five-year solution for the City. Additionally, staff has already identified a funding source for this project using a combination of ARPA funds previously approved by council for this purpose and Internal 74 Item10.

Service Funds. The following information outlines the research and work performed to support this decision. There are also additional documents that support the research performed.

The current firewalls are underperforming. The City currently sees most of the symptoms and impacts of this in applications that do not tolerate latency, like staff working remote, video conferencing, and voice related technologies. City staff has experienced this during Zoom or 3CX virtual meeting with a choppy voice or pausing video. We are also seeing many staff facing web applications slow to a crawl, which also impacts productivity. The City puts high demands on its staff to produce and when technology slows them down, it affects morale. Although there are other examples like this , the last one to highlight is the risk behind cyber security attacks. Distributed Denial of Service ( “DDOS”) attacks are ever -evolving and our hardware is showing its age in attempting to keep up with the latest threats.

The City has been utilizing SonicWALL Next Generation firewalls for about seven years. Normal expected life of this type of network hardware is about five years. The SonicWALL SuperMassive 9200 series has been showing its age recently by underperforming and experiencing errors in processing traffic. The most concerning of which is that this security platform is falling behind current standards, which introduces a risk level beyond our tolerance.

The Network Systems Administration ( “NSA”) division of Information Systems has been working closely with our firewall vendor, SonicWALL, on a multitude of performance and firmware issues that have arisen over the past year or more. Our goal is to get the highest ROI possible on any investment the City makes.

NSA Staff have reached the point that our continued work with the current firewall vendor (SonicWALL) is unfortunately no longer producing the results we need and expect, and we are experiencing major network slowdowns and outages as a result. After months of working very closely with the vendor on possible solutions, they are now recommending that we replace the aging SuperMassive 9200 pair with a pair of their latest generation model, the SonicWALL NSSP 13700. This model upgrade represents a major capital investment to the City – which triggered us to do our due diligence in comparing all best of breed products in this space.

In order to replace the aging hardware, we conducted research of the leading firewa ll solution vendors (including SonicWall) to find the right technology that meets the City’s needs. This has been a several month’s long process to identify the right path forward for the City. The process included reaching out to industry peers via MS-ISAC (Multi-State Information Sharing and Analysis Center® (MS-ISAC®), reviewing independent studies of the top brands, soliciting feedback and diligently evaluating and comparing the latest next generation firewall offerings from several vendors. In evaluating the options, we looked closely at the top three vendors that met our initial criteria. SonicWALL (NSSP 13700 that has been recommended), Fortinet (The FortiGate 1800F and the FortiGate 1101E) and Palo Alto (The PA-3260 and the PA-5220). NSA staff compared the specs of these platforms, and their alignment with various criteria we determined as critical for the needs of the City. After evaluating the solutions using an in -house developed comparison matrix (see attached), our research indicated that the Palo Alto units would likely best meet the needs of the City now and through the next hardware cycle. We found that Palo Alto 75 Item10.

emerged as the most performant of the three, by employing a “single pass” architecture in evaluating traffic for threats and si gnatures they seemed to be more efficient than the other solutions. The other vendors’ products, although rated for similar performance, show slower ACTUAL packet processing times in real world applications, seemingly due to requiring multiple evalu ation passes per packet. This clear distinction established the reason for a single full “proof of concept” evaluation as part of our due diligence.

After the above research, we identified a right-sized option in the Palo Alto PA-3260 model. Working with the vendor, Palo Alto, we then moved into a testing and “proof of concept” phase to get firsthand experience with this specific hardware as well as evaluate the vendor support during the “proof of concept” phase. This is a long process that usually is limi ted to a test environment, but our failing SonicWALL firewalls have forced us to push these Palo Alto test units into real world production use (with vendor approval). So far, the Palo Alto units have performed well above expectations.

As a result of this research and testing, Network & Systems Admin (NSA) Division is now recommending that the City purchase a pair of new Palo Alto 3260 firewalls to replace the current pair of SonicWALL SM9200 units. We are recommending this due to their superior performance , increased security processing power, and the improved reliability this will bring the City’s network.

RESOLUTIONS
a. Resolution No. 2022-40

ATTACHMENTS
a. Attachment “A” – Firewall Replacement Matrix
76 Item10.

RESOLUTION NO. 2022-40

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE DEPUTY

CITY MANAGER / DIRECTOR OF INFORMATION

SYSTEMS, AND HIS DESIGNEES, ON BEHALF OF THE

CITY, TO PROCURE AND ESTABLISH A CITYWIDE

FIREWALL REPLACEMENT

WHEREAS the City’s current SonicWALL firewalls are deployed at the core of the network and are the most important pieces of Cyber security technology that we currently leverage to protect the City’s technology infrastructure; and
WHEREAS, the City has been utilizing SonicWALL Next Generation firewalls for about seven years.

Normal expected life of this type of network hardware is about five years . The hardware itself has aged to the point that it cannot effectively handle the increasing demands of the City and could potentiallty create security risks; and
WHEREAS, research was conducted by the Network Systems Administration division to compare and evaluate top of the line industry firewall solutions; and WHEREAS, City Staff is recommending that City move forward with purchasing a pair of Palo Alto 3260 firewalls to run in parallel to better protect the City’s networks from internet threats, provide right sized performance for staff, and ensure our ability to deliver an expected level of municipal service.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

2. That the City Council authorizes the Deputy City Manager/ Director of Information Systems, or his designee, to procure and establish a replacement citywide firewall. 77 Item10.

Vendor Status Model FW Throughput IPS Throughput Threat Protection Throughput Security Processing DPI? Capture ATP? 100/40GbE ports 10GbE SFP ports 1GbE SFP Ports 1GbE Ethernet ports BGP Years HA? Active/Active SonicWALL Current Firewall SM 9200 15 Gbps 5 Gbps 3.5 Gbps Each engine prcessed separately YES YES - CaptATP 0 4 0 8 YES 3 Years YES yes NSSP 13700 60 Gbps 48 Gbps 45.5 Gbps Each engine prcessed separately YES YES - CaptATP 2 4 0 16 YES 3 Years YES no Vendor recommendation NSSP 13700 60 Gbps 48 Gbps 45.5 Gbps Each engine prcessed separately YES YES - CaptATP 2 4 0 16 YES 5 Years YES no Fortinet Fortigate 1800F 11Gbps 17 Gbps 9.1 Gbps Each engine prcessed separately YES yes (AMP) 2x 40G 2 8 16 Yes 1 Year YES yes Fortigate 1101E 9.8Gbps 12Gbps 7.1 Gbps Each engine prcessed separately YES yes (AMP) 4x 40G 4 8 18 Yes 1 Year YES yes Fortigate 1101E 9.8Gbps 12Gbps 7.1 Gbps Each engine prcessed separately YES yes (AMP) 4x 40G 4 8 18 Yes 3 Years YES yes Fortigate 1101E 9.8Gbps 12Gbps 7.1 Gbps Each engine prcessed separately YES yes (AMP) 4x 40G 4 8 18 Yes 5 Years YES yes Palo Alto PA-5220 15.2 Gps 7.7 GPS 7.7 GPS Single Pass YES YES - Wildfire 4 16 x (1G/10G) 16 x (1G/10G) 4 Yes 1 Year YES yes PA-5220 15.2 Gps 7.7 GPS 7.7 GPS Single Pass YES YES - Wildfire 4 16 x (1G/10G) 16 x (1G/10G) 4 Yes 3 Years YES yes PA-3260 8.7 Gbps 4.7 Gbps 4.7 Gbps Single Pass YES YES - Wildfire 4 8 x (1G/10G) 8 x (1G/10G) 12 Yes 1 Year YES yes PA-3260 8.7 Gbps 4.7 Gbps 4.7 Gbps Single Pass YES YES - Wildfire 4 8 x (1G/10G) 8 x (1G/10G) 12 Yes 3 Years YES yes Best option for the City PA-3260 8.7 Gbps 4.7 Gbps 4.7 Gbps Single Pass YES YES - Wildfire 4 8 x (1G/10G) 8 x (1G/10G) 12 Yes 5 Years YES yes This highlights the differentiating factors that has led to selecting this solution.

These were the main reasons these units did not meet the criteria for selection.

The current vendor, SonicWALL, recommended to upgrade to their NSSP 13700 units which would be a $275,343.68 project over the next 5 years. The Palo Alto PA-3260 units and upgrading to the preferred “single pass” technology would be $25k less than the SonicWALL upgrade option at $249,877.27 over the next 5 years. While the Fortinet units were a slightly less expensive option at $203,309.17, the solution was ruled out for not meeting the City’s technical requirements as indicated in the solutions section above and documented in the comparison matrix. So, from a cost and technical solution point we have found that the preferred Palo Alto option is, our best technology solution and best Attachment "A"
78 Item10.

Active/Passive Queue changes? PEERs recommend Dynamic Lists Multi Admin Access Price as quoted Pro Services? Annual Renew Cost Incl Tax, shipping Notes Quote Details yes no 7% No No $75,000.00 no 25000 Existing Legacy Hardware - SonicWALL recommnends replacing yes no 7% No No $208,091.14 no SonicWALL recommendation / 3 Years Reference quote MXWD231 yes 7% No No $275,343.68 yes SonicWALL recommendation / 5 Years Reference quote MPFF312 yes no 15% No No $98,665.73 no ~$33,000 annually reference cdw quote MKFW231 yes no 15% No No $85,586.06 no ~$24,000 annually reference cdw quote MLCD107 yes no 15% s No $160,397.57 no ~$24,000 annually reference cdw quote MLCD310 yes no 15% s No $203,309.17 no ~$24,000 annually reference 1903 quote COES04220120FOR2 yes yes 50% Yes Yes $176,643.74 no ~$30,000 annually yes reference cdw quote MKHV265 yes yes 50% Yes Yes $338,617.14 no ~$30,000 annually yes reference cdw quote MKHV362 yes yes 50% Yes Yes $118,368.01 no ~$30,000 annually yes reference cdw quote MKVT992 yes yes 50% Yes Yes $239,075.40 no ~$30,000 annually yes reference cdw quote MKVV187 yes yes 50% Yes Yes $249,877.27 no ~$30,000 annually COE InfoSys Preferred Option - POC Underway reference cdw quote MPNQ172 Attachment "A"
79 Item10.

ORDINANCE NO. 2021-14R

AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF ESCONDIDO, CALIFORNIA,

ADOPTING AMENDMENTS TO THE

ESCONDIDO MUNICIPAL CODE FOR THE

SELECTION PROCESS AND TERMS AND

COMPOSIITON OF VARIOUS CITY AND

INTERAGENCY BOARDS AND

COMMISSIONS

WHEREAS, the City of Escondido (“City”) is a general law city governed by a legislative body comprised of a mayor elected at large and four councilmembers elected by districts who regularly rely on the work and advise of various boards and commissions which hear and consider various matters of public interest on behalf of the City of Escondido; and
WHEREAS, the City currently has the following City boards and commissions:

Planning Commission, Public Arts Commission; Library Board of Trustees; Building Advisory and Appeals Board; Historic Preservation Commission; and, Transportation and Community Safety Commission; and
WHEREAS, the City’s mayor and councilmembers will also from time to time be appointed to and serve upon boards and commissions that are es tablished pursuant to state law and /or include other government agencies (“Interagency Board”) such as the North County Transit District (NCTD), S an Diego Association of Governments (SANDAG), San Dieguito River Valley, A ssociation of Bay Area Governments (ABAG), League of California Cities, Regional Solid Waste Association Board, Escondido Creek Watershed Alliance, Air Pollution Control District (APCD); and , the San Diego County Water Authority (SDCWA); and
80 Item11.

STAFF REPORT

March 2, 2022
File Number 0685-20

SUBJECT

RESOLUTION OF FORMATION FOR COMMUNITY FACILITIES DISTRICT (CFD) 2022-1 (ECLIPSE AND

MOUNTAIN HOUSE) -

DEPARTMENT

Engineering Services

RECOMMENDATION

Request that the City Council hold a public hearing and adopt Resolution No. 2022 -10 establishing Community Facilities District (“CFD”) 2022-1, and Resolution No. 2022 -11 determining the necessity to incur bonded indebtedness for the Eclipse and Mountain House Project s. Further recommendations include a doption of Resolution No. 2022 -12 certifying election results, and Resolution No. 2022 -14 annexing the project as Zone 2020 -6 of the Citywide Services CFD 2020 -1. Finally, it is recommended that Ordinance No. 2022-03 be introduced for first reading.

Staff Recommendation: Approval (Engineering Services Department: Julie Procopio)

Presenter: Julie Procopio

FISCAL ANALYSIS

The costs associated with evaluation of the formation of the proposed CFD are paid for by the Developers in accordance with the Reimbursement Agreement approved by the City Council on May 12, 2021 by Resolution No. 2021-56 and the First Amendment adopted on August 25, 2021 by Resolution 2021-115.

PREVIOUS ACTION

On January 26, 2021, the City Council approved Resolution No. 2022 -02 declaring its intent to establish CFD 2022-1 to fund public facilities related costs for the Eclipse and Mountain House Projects (“Projects”), approving a Funding Agreement and setting a public hearing date of March 2, 2022. Resolution No. 2022- 08 was also adopted declaring intent to incur bonded indebtedness.

On May 26, 2021, the City Council approved the first Final Map for the Eclipse Project, formerly known as Del Prado, Tract SUB15-0022. On May 11, 2016, the City Council approved two (2) Tentative Maps, SUB15- 022 and SUB15-0023, approving the entitlements for the Del Prado project.

81 Item12.

On December 14, 2005, the City Council approved a Final Map for the Mounta in House Project formerly known as Highpoint, Tract 683 -J. The development stalled during the recession. Three (3) lots were subsequently sold and are not a part of this request.

BACKGROUND

CALWest (“Developer”) has submitted a petition requesting that the City Council begin proceedings for establishment of a Facilities CFD and the issuance of bonds in an amount not to exceed $6-million to fund public facilities associated with the Eclipse and Mountain House Projects. Cal West has deposited funds to cover the cost of the consultants retained by the City, including a special tax consultant, bond counsel, market consultant, and financial advisor, to evaluate the feasibility and prepare documents required to form the proposed CFD 2022-1.

The special tax rates proposed by the Developer meet all provisions of the City’s Amended and Restated Goals and Policies for Community Facilities Districts (“Policy”), adopted March 25, 2020. The Developer has provided recent market analysis for both projects dated July and August 2021 to substantiate the market-pricing, pace of sales, and anticipated appreciation. The details of the Eclipse and Mountain House CFD are provided in the Community Facilities District report (Attachment “1”).

Shown below is a sample of the proposed special tax rates per dwelling unit for proposed CFD 2022-1 and the resulting estimated total tax burden for FY 2021-22 for Zone A, Eclipse and Zone B, Mountain House:

Zone Home Size Base Sales
Price
Facilities
CFD/Yr.

Facilities
CFD %
Services
CFD/Yr.

Services
CFD %
Total Tax
Burden
A 1,140 square feet $504,900 $2,249.20 0.45% $739.50 0.15% 1.749% A 1,290 square feet $529,900 $2,371.25 0.45% $739.50 0.14% 1.744% A
1,534 square
feet $579,900 $2,615.42 0.45% $739.50 0.13% 1.735%
A 1,568 square feet $569,900 $2,615.42 0.46% $739.50 0.13% 1.745% B
Detached Homes
Estimated at
3,200 square feet $1,100,000 $1,790.42 0.16% $546.72 0.05% 1.376%

82 Item12.

In accordance with the Policy, the formation documents include protections for homeowners and for the City prior to future issuance of bonds, including:

Annual Special Tax Installment: The proposed annual installment for the Facilities CFD of 0.16 -0.46% of the base home price is less than the City’s Policy maximum of 0.75%.

Maximum Total of All Special Assessments: In advance of bond sale the total of all special assessments, fees and charges that appear on the tax bill will be confirmed not to exceed the maximum effective tax rate of 1.8%, which is lower than the City Policy maximum effective tax rate of 2.0%.

Disclosures: The Developer is required to disclose the special taxes in all sales brochures, onsite advertising and purchase documents to the satisfaction of the City Manager and as required by statute.

Pre-payment of Facilities CFD: The special tax for the Facilities CFD may be pre-paid in full at any time after a building permit is issued or in part at the time of initial purchase per the terms set forth in the Rate and Method of Apportionment of Special Taxes.

Minimum Value-to-Debt Ratio is 4:1: At the time of bond issuance, the value of the properties subject to the levy of special taxes, including the value of the improvements to be financed, will be compared to the aggregate amount of the special tax lien proposed to be created plus any prior fixed assessm ent liens and/or special tax liens to confirm that this requirement is met.

Services CFD 2020-01:

Although already entitled, the Eclipse and Mountain House Projects have agreed to annex into the Citywide Services CFD No. 2020-1 as Zone 2020-6, in consideration for formation of the Facilities CFD. This arrangement is similar to that approved for the Canopy Grove (Villages) project that also requested formation of a Facilities CFD. CWC Escondido 113, LLC and TTLC CALWEST, LLC have submitted their unanimous consent to annex into the Citywide Services CFD (Attachment 2).

SUMMARY OF ACTIONS:

The following actions are recommended to be taken during the March 2, 2022 City Council meeting.

Step 1: Public Hearing:

Staff recommends that the City Council hold a public hearing to consider formation of a CFD 2022-1, the Eclipse and Mountain House CFD.

Step 2: CFD Formation:

After the public hearing, it is recommended that the City Council adopt Resolution No. 2022-10 that will form CFD 2022-1, the Eclipse and Mountain House CFD and call for an election. Adoption of Resolution 2022-11 determining the necessity to incur bond indebtedness is also recommended.

83 Item12.

Step 3: Landowner Election:

The landowner, CAL West, has waived the waiting period allowing the election to be held immediately.

The City Clerk will open ballots for the CFD and read the results aloud. The ballot for CFD 2022-1 contains Proposition A to incur up to $6-Million in bond indebtedness, Proposition B that sets special taxes for the Facilities CFD, and Proposition C that sets an appropriation limit of $6-Million.

Step 4: Certify Election Results and Introduce Ordinances:

If the property owner votes affirmatively for each of the propositions on the special tax and special bond election ballots, the City Council is recommended to adopt Resolution No. 2022-12 certifying election results, and Resolution No. 2022-14 annexing the projects into the Services CFD . Finally, it is requested that Ordinance No. 2022-03 authorizing levy of special taxes be introduced for first reading.

FUTURE ACTIONS:

A second reading of Ordinance 2022-03 is required on March 16, 2022. The Ordinance will take effect 30- days after its second reading. CAL West is in escrow to purchase the south half of the Eclipse development. The City Council will be asked to approve annexation of this property into both the Facilities and Services CFD after CAL West takes ownership of the property. The City Council will also be asked to authorize issuance of bonds when (i) each project has commenced construction; and (ii) at least 50 - percent of total build-out has occurred; or (iii) a more restrictive level of completion needed to successfully market the bonds. Significant build-out is not projected to occur until late 2023 or 2024.

RESOLUTIONS
a. RESOLUTION NO. 2022-10, Establishing CFD 2022-01
b. RESOLUTION NO. 2022-10, EXHIBITS A & B
c. RESOLUTION NO. 2022-11, Determining Necessity to Incur Bond Indebtedness d. RESOLUTION NO. 2022-11, EXHIBIT A
e. RESOLUTION NO. 2022-12, Certifying Election Results
f. RESOLUTION NO. 2022-12, EXHIBITS A & B
g. RESOLUTION NO. 2022-14, Annexing to CFD 2020-1 (Services), Zone 2020-6 h. RESOLUTION NO. 2022-14, EXHIBITS A-D

ORDINANCES
a. ORDINANCE NO. 2022-03

84 Item12.

ATTACHMENTS
a. Attachment “1”: Community Facilities District Report CFD 2022-1 (Facilities CFD) b. Attachment “2”: Unanimous Consent to Annex into CFD 2020-1 (Services CFD) 85 Item12.

SD
FA
S P E

C I A L D I S

T R I C T F I N

A N C I N G & A D M

I N I S T R A T I O N
4 3
7 W e s t G r a n d A v e n u e
E s c o n d i d o C A 9 2 0 2 5
T e l 7 6 0 . 2 3 3 . 2 6 3 0 F a x 7 6 0 . 2 3 3 . 2 6 3 1

COMMUNITY

FACILITIES DISTRICT REPORT
MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982

COMMUNITY F
ACILITIES DISTRICT NO. 2022-1
OF THE

CITY OF ESCONDIDO
(“Eclipse/Mountain House”)
Prepared for
:

T
he City of Escondido
201 N.

Broadway
Escondido, CA 92025
March 2, 2022
Attachment "1"
86 Item12.

C
ity of Escondido 1 March 2, 2022
C
ommunity Facilities District No. 2022-1

COM
MUNITY FACILITIES DISTRICT NO. 2022-1

OF THE CITY OF ESCONDIDO
(“Eclipse/Mountain House”)

TABLE OF CONTENTS

INTRODUCTION ....................................................................................................................... 2

COMM
UNITY FACILITIES DISTRICT NO. 2022-1 .................................................................... 3

DESC
RIPTION OF CFD NO. 2022-1 ......................................................................................... 4

DESC
RIPTION OF FACILITIES ................................................................................................ 5

GENERAL DES
CRIPTION OF FACILITIES ....................................................................................................................... 5

ESTIMATE
D COST OF CAPITAL IMPROVEMENTS ....................................................................................................... 5

ESTIMATE
D INCIDENTAL EXPENSES ............................................................................................................................. 6

RAT
E AND METHOD OF APPORTIONMENT OF SPECIAL TAX ............................................ 7

BOUN
DARIES ........................................................................................................................... 8

GENER
AL TERMS AND CONDITIONS .................................................................................... 9

EXHIBITS
:

A. DESCRIPTION OF FACILITIES
B. BOUNDARIES OF THE DISTRICT
C. ESTIMATE OF COST
D. RATE AND METHOD OF APPORTIONMENT

Attachment "1"
87 Item12.

C
ity of Escondido 2 March 2, 2022
C
ommunity Facilities District No. 2022-1

COM

MUNITY FACILITIES DISTRICT REPORT
MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982

PREPARED FOR
COMMUNITY FACILITIES DISTRICT NO. 2022-1 OF THE

CITY OF ESCONDIDO
(“Eclipse/Mountain House”)

INTRODUCTION

The
boundaries of the City of Escondido (“City”) encompass approximately 37 square miles within inland north San Diego County. The City provides water services to portions of property within the City boundary and a portion of the property is provided water service by Rincon Del Diablo Municipal Water Agency (“Rincon Del Diablo”) (collectively, “Water District Area”).

Substantial residential development and other developments are occurring in the City and Water District Area and will require additional City facilities including, but not limited to, public facilities included in the City’s development fee programs used to finance expansion projects.

Attachment "1"
88 Item12.

C
ity of Escondido 3 March 2, 2022
C
ommunity Facilities District No. 2022-1

COM
MUNITY FACILITIES DISTRICT NO. 2022-1

WHEREAS
, the CITY COUNCIL (the “Council”) of the CITY OF ESCONDIDO, CALIFORNIA (“City”), did, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”), and specifically Section 53321.5 thereof, expressly order the filing of a written report (“Report”) for a proposed Community Facilities District. This Community Facilities District is hereinafter referred to as COMMUNITY FACILITIES DISTRICT NO. 2022-1 OF THE CITY OF ESCONDIDO (Eclipse/Mountain House)(hereinafter referred to as ”CFD No. 2022-1”); and,

WHEREAS, the Resolution, as defined below, ordering the preparation of the Report did direct that such Report generally contain the following:

A. A description of the community facilities proposed to be funded through CFD No. 2022-1; B. A general description of the boundaries of CFD No. 2022-1; C. A cost estimate setting forth the costs and expenses for providing the Public Facilities, defined herein, applicable in this instance to the City including the area of CFD No. 2022-1; D. The Rate and Method of Apportionment of the Special Tax (the “RMA”) in sufficient detail to allow each landowner or resident within proposed CFD No. 2022-1 to estimate the maximum amount of payment; and
E. General terms and conditions relating to such proceedings.

For particulars, reference is made to the Resolution of Intention, Resolution No. 2022-02, adopted by the Council on January 26, 2022 (“Resolution”), with respect to CFD No. 2022-1, which directed the preparation of this Report.

NOW, THEREFORE, the undersigned authorized representative of the City, the appointed Special Tax Consultant and responsible person directed to prepare the Report, pursuant to the provisions of the Act, does hereby submit the following data:

Attachment "1"
89 Item12.

C
ity of Escondido 4 March 2, 2022
C
ommunity Facilities District No. 2022-1

DESC
RIPTION OF CFD NO. 2022-1

CF
D No. 2022-1 is initially proposed to include approximately 466.61 total gross acres (the “Property”) consisting of two special tax zones (“Zone” or “Zones”), as further described herein and depicted within Exhibit B. The initial boundaries of Zone A includes approximately 3.38 gross acres and is currently expected to be developed into 81 new single family residential dwelling units. In addition, a future area of annexation (“Future Annexation Area”) to Zone A has been identified which includes approximately 1.44 gross acres and is currently expected to be developed into 32 new single family residential dwelling units. Zone B includes approximately 463.23 gross acres and is currently expected to be developed into 36 new single family residential dwelling units. The territory proposed to be included in CFD No. 2022- 1 is fully contained within the City of Escondido. In total, the initial area included within CFD No. 2022-1 is currently expected to be developed into 117 single family residential dwelling units, with an additional 32 single family residential units planned within the Future Annexation Area.

CF
D No. 2022-1 is being formed pursuant to the terms of that certain Acquisition and Funding Agreement Between and among City of Escondido, Community Facilities District No. 2022-1 of the City of Escondido, CWC Escondido 113, LLC, and TTLC CALWEST, LLC (“2022 CWC Escondido / CalWest Acquisition and Funding Agreement”). The 2022 CWC Escondido / CalWest Acquisition and Funding Agreement establishes the criteria under which CFD No. 2022-1 may be formed.

Attachment "1"
90 Item12.

DESCRIPTION OF PUBLIC FACILITIES
Under the provisions of the Act, a community facilities district'may provide for the purchase, construction, expansion or rehabilitation of any real or other thngible property with an estimated useful life of five (5) years or longer.

GENERAL DESCRIPTION OF FACILITIES

1. A general description of the proposed Public Facilities (as defined in Exhibit "A") funded by CFD No.2O22-1 include, but not limited to, facilities in the City's development fee programs used to finance expansion projects, as further defined in Exhibit "A'. All proposed Public Facilities shall have an estimated useful life of five (5) years or longer to serve the properties within the City including the Property within CFD No. 2022-1.

2. For further particulars as to the Public Facilities to be financed through CFD No.2022-1, reference is made to Exhibit "A" attached hereto and incorporated herein.

Based upon the above, it is my opinion that said Public Facilities, as deflned in Exhibit "A," are those that are necessary to meet the increased demands placed upon the City as a result of development occurring, and expected to occur, within the boundaries of CFD No. 2022-1.

C^.-a-t
SPcoN

CITY OF ESCONDIDO

ESTIMATED COST OF PUBLIC FACILITIES

1. Based upon information available, the estimated cost for the Public Facilities to be funded by CFD No.2022-1 is generally as follows:

A. Said projected Public Facilities costs to be financed and provided by CFD No. 2022-1 including the Future Annexation Area, excluding incidental expenses and flnancing costs, are estimated to be approximately $3,790,567 in 2021 dollars. This is based upon the anticipated developmental approvals for 149 residential units within CFD No. 2022-1, including the Future Annexation Area, and resulting projected Public Facilities needs. Based on an City of Escondido
Community Facilities District No. 2022-l
5March2,2022
Attachment "1"
91 Item12.

C
ity of Escondido 6 March 2, 2022
C
ommunity Facilities District No. 2022-1

assumptio
n as to the interest rate obtained at the time of the financing, CFD No. 2022-1 will fund an average of $25,440 per dwelling unit through Bond financing, as defined herein.

2. Current cost estimates for Public Facilities within the City are contained within Exhibit “C” attached hereto and incorporated herein by reference. Public Facilities funded by CFD No. 2022-1 are based upon the projected number of residential dwelling units and the projected number of square feet per dwelling unit within CFD No. 2022-1, including the Future Annexation Area, as shown in Exhibit “C” as further described in paragraph 1.A above.

ESTIMATED INCIDENTAL EXPENSES

3. Incide
ntal Expenses to be included in the levy of special taxes.

Pursuant to Section 53340 of the Act, the proceeds of any special tax (“Special Tax”) levied and collected by CFD No. 2022-1 may be used only to pay, in whole or in part, for the cost of providing Public Facilities, services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of Special Taxes, collection of Special Taxes, payment of Special Taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2022-1. The estimate of incidental expenses (cost of issuance and underwriters discount) associated with the issuance, sale and delivery of bonds for CFD No. 2022-1 (“Bonds”) are not expected to exceed

9.75% of the proceeds of the bond issue. The incidental expenses associated with the annual administration of CFD No. 2022-1 are expected to be $30,000 in 2021 dollars. However, it is anticipated that the incidental expenses will vary due to inflation and other factors, which may not be foreseen today, and the actual incidental expenses may exceed these amounts accordingly.

Attachment "1"
92 Item12.

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
All of the Property located within CFD No. 2022-1, unless exdnpted by law or by the RMA, shall be taxed for the purpose of providing necessary Public Facilities !o serve the needs of the City including CFD No.2022-1. Pursuant to Section 53325.3 of the Act, the tax imposed "is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property." The Special Tax may be based on the benefit received by property, the cost of making facilities or authorized services available or other reasonable basis as determined by the Council, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XlllA of the California Constitution.

The Resolution of lntention generally set forth the RMA to allow each homeowner or resident within proposed CFD No. 2022-1to estimate the maximum amount that would be required for payment from any particular parcel. The discussion of the RMA provided below is intended merely as a general description of the RMA, not as a substitute for, and in no way supersedes, the RMA. For particulars as to the proposed RMA, see Exhibit 'D,' attached hereto and incorporated herein by this reference.

The Special Taxes may be levied commencing in fiscal year 2022123 and continuing each fiscal year, but shall not be levied beyond Fiscal Year 2075176. The Special Tax to be authorized, to the extent possible, shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedures, sale and lien priority in any case of delinquency as applicable for ad valorem taxes. Any Special Taxes that cannot be collected on the County of San Diego property tax roll may be collected through a direct billing procedure, to be established by the City on behalf of CFD No. 2022-1.

A property owner of Developed Property within CFD No. 2022-1, as described in the RMA, may choose to prepay all, or a portion of, the Special Tax obligation prior to initial close of escrow, and may prepay all of the property's Special Tax obligation after close of escrow. The available methods for so doing are described in Section I of the RMA. lnformation related to the Special Tax appeals and interpretation procedure is set forth in the RMA and in General Terms and Conditions, Section G of the RMA.

It is my opinion that the RMA, as shown in Exhibit "D," is fair and equitable, uniformly applied, and not discriminatory or arbitrary.
e=-l-*+
SPEco

CITY OF ESCONDIDO
City of Escondido
Community Facilities District No. 2022-l
7March2,2022
Attachment "1"
93 Item12.

C
ity of Escondido 8 March 2, 2022
C
ommunity Facilities District No. 2022-1

BOU

NDARIES

The initial b
oundaries of CFD No. 2022-1 and the Future Annexation Area to Zone A of CFD No. 2022-1 are those properties and parcels which are covered under the 2022 CWC Escondido / CalWest Acquisition and Funding Agreement.

A general description of the boundaries of CFD No. 2022-1 is as follows:

All that Property as shown on a map designated by the name and number of CFD No. 2022- 1 and as approved by the Council through Resolution No. 2022-02, on January 26, 2022, recorded on February 1, 2022 in Book 49 of Maps and Assessment and Community Facilities Districts at Pages 89-90 and as Instrument No. 2022-7000033. A copy of which is on file and open for public inspection.

For further particulars, reference is made to Exhibit “B” attached hereto and incorporated herein by reference.

Attachment "1"
94 Item12.

C
ity of Escondido 9 March 2, 2022
C
ommunity Facilities District No. 2022-1

GENER

AL TERMS AND CONDITIONS

The General T
erms and Conditions for CFD No. 2022-1 are as follows:

1. SUBSTITUTION FACILITIES
The description of the Public Facilities, as set forth herein, is general in its nature. The final nature and location of such Public Facilities will be determined upon the preparation of final plans and specifications. The final plans may show substitutes in lieu, or modification to the proposed Public Facilities in order to provide the Public Facilities necessitated by development occurring in CFD No. 2022-1, and any such substitution shall not be a change or modification in the proceedings as long as the Public Facilities provide a service substantially similar to that as set forth in this Report and are authorized by the proceedings under which CFD No. 2022-1 was formed.

2. BONDS
In order to finance the Public Facilities as set forth in the Report, it may be necessary for Bonds, or equivalent securities, to be issued pursuant to the terms, conditions and authorization as set forth in the Act. The maximum amount of authorized bonded indebtedness for CFD No. 2022-1 has been specified as an amount not to exceed six million dollars ($6,000,000) (Resolution No. 2022-02/January 26, 2022).

3. APPEALS AND INTERPRETATION PROCEDURE
Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the CFD Administrator. The written notice of appeal must be filed within the same fiscal year as having paid the first installment of the Special Tax that is disputed and the property owner must be current and remain current in the payment of all Special Tax levied on or before the payment date. The CFD Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the CFD Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, an adjustment shall be made to the Annual Special Tax on that Assessor’s Parcel in the subsequent fiscal year(s) and a refund, as described, shall be made representing the amount of the adjustment for the most recent fiscal year. The CFD Administrator shall determine if funds are available to provide such refund or, if funds are not available in the sole discretion of the CFD Administrator to provide a cash refund, a credit to the levy of Special Tax in one or more subsequent fiscal years shall be made in the same amount. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal actions by such property owner. Interpretations of the RMA may be issued or provided by the City, on behalf of CFD No. 2022-1, by resolution for purposes of clarifying any vagueness or ambiguity as it relates to any category, zone, rate or definition applicable to the RMA or the proceedings for formation of CFD No. 2022-1 or authorizing the Special Tax.

4. SPECIAL TERMS AND CONDITIONS
Special terms and conditions applicable for these proceedings and as approved by the Council are listed herein as follows:

Attachment "1"
95 Item12.

GOALS AND POLICIES: On and after January 1,1994, a local agency may initiate proceedings to establish a community facilities district pursuant to Government Code provisions only if it has first considered and adopted certain goals and policies. The City adopted Amended and Restated Goals and Policies Regarding the Establishment of Community Facility Districts with the adoption of Resolution No. 2020-20 at a regularly scheduled meeting of the Council held on March 25,2020. 4 c><---
SPE c ANT

CITY OF ESCONDIDO
City of Escondido
Community Facilities District No. 2022-l
l0 March 2,2022
Attachment "1"
96 Item12.

C
ity of Escondido March 2, 2022
C
ommunity Facilities District No. 2022-1

CITY OF ESCOND
IDO
COMMUNITY FACILITIES DISTRICT NO. 2022-1

EXHIBIT “A”

DESCRIPTION OF PUBLIC FACILITIES

The Mello-Roos Community Facilities Act of 1982, as amended (the “Mello-Roos Act”), provides an alternative method of financing certain facilities and services, especially in developing areas and areas undergoing rehabilitation. The Property within the initial boundaries of CFD No. 2022-1 is proposed to be developed with an estimated total of 117 new single family residential dwelling units. The Future Annexation Area of CFD No. 2022-1 is proposed to be developed with an estimated total of 32 new single family residential dwelling units.

These new dwelling units, when developed, together with other additional development within the City will impact the City and the area in and around CFD No. 2022-1 in particular and cause the need for additional public facilities described herein (“Public Facilities”). The proceeds of bonds issued to be issued by CFD No. 2022-1 and Special Tax revenues collected within CFD No. 2022-1 are expected to finance certain Public Facilities, as defined below. The cost for a portion of these Public Facilities will be financed with proceeds of bonds issued to be issued by CFD No. 2022-1 and Special Tax revenues collected within CFD No. 2022-1.

1. Public Facilities include, but not by way of limitation, planning, engineering, design, acquisition, construction, lease, improvement, and/or financing of interim and permanent facilities, as reasonably determined from time to time by the City to be necessary to accommodate the requirements to be generated as a result of development, including the property within CFD No. 2022-1, during the term of the special taxes as follows:
(a) City water connection facilities including modernization, rehabilitation, relocation and expansion of existing facilities and related infrastructure. (b) City wastewater connection facilities including modernization, rehabilitation, relocation and expansion of existing facilities and related infrastructure. (c) Regional Traffic facilities including modernization, rehabilitation, relocation and expansion of existing facilities and related infrastructure. (d) Other Public Facilities including modernization, rehabilitation, relocation and expansion of existing public facilities and related infrastructure.

Attachment "1"
97 Item12.

C
ity of Escondido March 2, 2022
C
ommunity Facilities District No. 2022-1

(e) Park
facilities including modernization, rehabilitation, relocation and expansion of existing facilities and related infrastructure.
(f) The costs attributable to planning, engineering, designing, leasing, financing, acquiring, expanding, relocating, rehabilitating, or constructing (or any combination thereof) of City Facilities (including, without limitation, construction management, inspection, materials testing, and construction staking); any “debt,” as defined in Government Code Section 53317(d), the costs to issue and sell any such debt (including, without limitation, underwriter’s discount, appraisals, market studies, reserve fund, capitalized interest, bond counsel, disclosure counsel, special tax consultant, bond trustee or fiscal agent, bond and official statement printing, and administrative expenses of the City and/or CFD No. 2022-1), and all other incidental expenses.

The Public Facilities shall be constructed, whether or not acquired in their completed states, pursuant to plans and/or specifications approved by the City. The Public Facilities described in this Exhibit are representative of the types of improvements to be funded or financed by CFD No. 2022-1. Addition, deletion or modification of Public Facilities may be made consistent with the requirements of the City, CFD No. 2022-1, and the Mello-Roos Act.

Attachment "1"
98 Item12.

C
ity of Escondido March 2, 2022
C
ommunity Facilities District No. 2022-1

CIT

Y OF ESCONDIDO
COMMUNITY FACILITIES DISTRICT NO. 2022-1

EXHIBIT “B”

BOUNDARIES OF CFD NO. 2022-1
Attachment "1"
99 Item12.
1oF 2SHEET
DATE DECEM8ER2O2,I
JOB NO. cFmo22-1
SDFA
SPECIA! DISIRICT FIMNCING
&ADMINISTR,ATION
437 WEST GRANO AVENUE
ESCONDIDO, CALIFORNI.A 92025
TELEPHONE: 080)23&2630
FAX: Os)233-263'l

BOUNDARY MAP OF
COMMUNITY FACILITIES DISTRICT NO. 2022.1
(ECLTPSE/MOUNTAIN HOUSE)
OF THE CITY OF ESCONDIDO.COUNTY OF SAN DIEGO

STATE OF CALIFORNIA

LOTDESIGI'IATION
ASSESSORPARCA NO.
238-13('-'11-00
238-'130-2F00
23€.13G27-O0
238-130-3$.OO*
238-13G38-OO*
1&7{80-38-00
187{90-3900
1 87-0SG4G00
1 87-OS0.41 -00
187-09G42-00
187-09G,14"00
187{SG4'O0
187{90-,46-00
1 87-O9&47-OO
167-09&4&@
187490-49-00
1E7{90-5S00
187-0SG51-00
1 87-09G53-00
187-090-54-00
187-090-5@
167-09G57-00
'187-09&58-m
'187-09G5+O0
187-091-1&00
'187-091-'14-00
I 87-091 -{ 5-00
187-0S1-1&00
'187-0s1-17-00
1E7-081-18-00
18?-001-ls-00
lE7-091-2G00
't87-091-22-@
1 87-09'1-2&00
187-091-24-00
1 87{91 -25-00
,187-091-26-00
I 87{91 -27-00
187{91-2&00
1 A7-OSt-23-00
187-091-3G00
187-091-31-00
I 87-O9't -32-00
1 87-09 l-33-00
1 87-09 1-34-00
t87-091-35-00
zotE
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SIEET
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1 2
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46 CENTRE CITY PKWY
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S€le ln Fei
ZONE A
FILED IN THE OFFICE OF THE CTTY CLERK OF THE CITY OF ESCONDIOO. rHrs la DAY oF lfMJAaL_ . 2oj:2_.

BY 446-Q

FILED THIS

THE HOIJR
tt AT
IN
ClTY"cLER'(
cnYbFEscoNDroo

STATE OF CALIFORNIA
. THE OFFICE OF THE COUNTY RECOROER OF THE COUNTY OF SAN

DIEGO, CALIFORNIA

I HEREAY CERTIFY TIAT THE WTHIN MAP SHOWNG THE BOUNDARIES OF COMMUNITY FACILTNES DISTRICT NO. 2022.1 OF THE CITY OF ESCI'NDIDO, C'UNry OF SAN OIEGO, STATE OF CALIFORNIA, WAS APPROVED BY TIIE ClrY COUNCIL OF THE CMT OF ESCONDIDO AT A REGULAR MEMNG THEREOF. HETI)'ON THE 16il DAY OF
.lANrrltv .2oll. BV rrs REsoLuno--N No.jO&Z:O:._.
pv,--%

DEPUTYRECORDER' ' - ,/
COUNTY RECORDER.€NfiET J. DRONENBURG. JR,
COUNTY OF SAN DIEGO EiNC'T

STATE OF CALIFORNIA
L€GEND:

BY: -/a4<:_ e LOT NUMBER
COMMUNIryFAOLMES

DISTRICT BOUNMRY (ZONE A)
FUTURE ARFA OF ANN€XATION
(ZONEA),t
cfftgl€RK

CITY OF ESCONDIDO

STATE OF CALIFORNIA
m
FI
oo6
oFI
ru
NoN
aog
r
!o
BK \1 PG8 D?2-70DOO33
Attachment "1"
100
Item12.
2oF 2SHEET
DATE DECEMBER2O2l
JOB NO. CFD202-1

BOUNDARY MAP OF
COMMU NITY FACILITIES DISTRICT NO. 2022.1
(ECLTPSE/MOUNTAI N HOUSE)

OF THE CITY OF ESCONDIDO

COUNF/ OF SAN DIEGO

STATE OF CALIFORNIA
@

HEIGHTS
GI.N
ZONE B
I
'il
*
l
LEGEND:
lr) LOT NUMEER

COMMUNITY FACILMES

DISTRJCT BOUNOARY CZONE
,t00 0 ,loo 800
@

NOT A PART
rc
Sele ln Fet
@

KENSINGTON
GLN
B)
SDFA

SPECTAL DISTRICT FINANCING
&ADMINISTMTION
437 WEST GMND AVENUE
escoNotoo, cAuFoRNrA €2025
TELEPHONE: O60P312630
FAX: Cf60)233-2631
tn
FI
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Attachment "1"
101
Item12.

C
ity of Escondido March 2, 2022
C
ommunity Facilities District No. 2022-1

CIT

Y OF ESCONDIDO
COMMUNITY FACILITIES DISTRICT NO. 2022-1

EXHIBIT “C”

ESTIMATE OF COST
Attachment "1"
102
Item12.

Fe
e per Unit
C
ity of Escondido Water Connection per DU Type $39
6,630.00
Detached SFD (1" water meter size) $7,930.00 NA $0.00 $0.00 Attached Dwellings (includes Condos, Townhouses, Etc.) $3,510.00 113 $396,630.00 $396,630.00 Was
terwater Connection per DU $84
7,500.00
Detached Single Family Detached $7,500.00 NA $0.00 $0.00 Attached Dwellings (includes Condos, Townhouses, Etc.)
Units with 3 or more bedrooms $7,500.00 113 $847,500.00 $847,500.00 Units with less than 3 bedrooms $5,625.00
Traffic
Local Fee per DU Type $38
7,680.53
Single Family $4,191.77 36 $150,903.72 $150,903.72
Condo/Townhouse $2,095.37 113 $236,776.81 $236,776.81
SA
NDAG Traffic Fee Regional ("RTCIP") (as of
07/01/2021) $2,635.50 113 36 $297,811.50 $94,878.00 $392,689.50 $392,689.50 Pu
blic Facilities Fee per DU $4,969
.99 113 36 $561,608.87 $178,919.64 $740,528.51 $740,528.51 Pa
rk Fee $1,004
,511.32
Single-Family Dwelling $6,986.29 36 $251,506.44 $251,506.44 Multi-Family Dwelling $6,663.76 113 $753,004.88 $753,004.88 D
rainage Facilities Fee $93
,922.18
Single-Family Dwelling $1,136.12 36 $40,900.32 $40,900.32 Multi-Family Dwelling $469.22 113 $53,021.86 $53,021.86 Su
btotal - City Facilities 113 36 $3,146
,353.92 $71
7,108.12 $3,863
,462.04 $3,863
,462.04
C
ity of Escondido
Community Facilities District No. 2022-1 Exhibit C - Page 1 Dated March 2, 2022 Eligible Costs Per
Fee Type
Subtotal Per
Facility Funded
City of Escondido
Community Facilities District No. 2022-1 (Proposed)
Exhibit C - Estimate of Cost
Effective 2/23/2021 (or as noted)
CalWest Communities - Eclipse & Mountain House
Source of City Facilities Fee per Unit: Facilities Fee Guide for Development Projects Impact Facility Fee Description
Zo
ne A
DUs
Zone B
DUs
Zo
ne A
(Eclipse)

Eligible
Costs
Zo
ne B
(Mou
ntain House)
Eligible
Costs
Attachment "1"
103
Item12.

C
ity of Escondido March 2, 2022
C
ommunity Facilities District No. 2022-1

CIT

Y OF ESCONDIDO
COMMUNITY FACILITIES DISTRICT NO. 2022-1

EXHIBIT “D”

RATE AND METHOD OF APPORTIONMENT

Attachment "1"
104
Item12.

C
ity of Escondido
Decemb
er 9, 2021
Community Facilities District No. 2022-1 Page 1 of 22 RA

TE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(Eclipse / Mountain House)

CITY OF ESCONDIDO

An
annual Special Tax (as hereinafter defined) shall be levied on all applicable Assessor’s Parcels (as hereinafter defined) within Community Facilities District No. 2022-1 (Eclipse / Mountain House) (“CFD No. 2022-1”) of the City of Escondido (“City”) and collected each Fiscal Year commencing in Fiscal Year 2022-2023, in an amount determined by the City Council, through the application of this Rate and Method of Apportionment of Special Taxes (“Rate and Method of Apportionment”) as described below. All of the real property within the boundaries of CFD No. 2022-1, unless exempted by law or by the provisions hereof, shall be subject to the Special Tax for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS

The
terms hereinafter set forth have the following meanings:

“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter

2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California.

“Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2022-1 including but not limited to: the costs of computing the Special Taxes including the Backup Special Tax and preparing and presenting to City Council the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-1 or any designee thereof of complying with City and/or CFD No. 2022-1 disclosure requirements associated with applicable federal and State securities laws and of the Act; the costs associated with preparing Special Tax disclosure statements and responding to property owner and public inquiries regarding CFD No. 2022-1, including its Special Taxes; the costs of the City, CFD No. 2022- 1 or any designee related to the analysis and reduction, if any, of the Special Tax in accordance with Section D; the costs of the City, CFD No. 2022-1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses; the costs of City staff time and reasonable overhead relating to CFD No. 2022-1; and amounts estimated or advanced by the City or CFD No. 2022-1 for any other administrative purposes of CFD No. 2022-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

Attachment "1"
105
Item12.

C
ity of Escondido
Decemb
er 9, 2021
Community Facilities District No. 2022-1 Page 2 of 22 “A
nnexed Area” means the property within the boundaries of the future area to be annexed to CFD No. 2022-1. Such area is identified on Exhibit “B” attached to this Rate and Method of Apportionment and identified as “Future Area of Annexation” to Zone A of CFD No. 2022- 1 and includes Escondido Tract Map No. SUB15-0023.

“Assessor’s Parcel” or “Assessor Parcels” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s parcel number.

“Assessor’s Parcel Map” means an official map of the County Assessor of the County designating parcels by Assessor’s parcel number.

“Assigned Special Tax” means the Special Tax for each Assessor’s Parcel of Developed Property or portion thereof, as determined in accordance with Section C.1.b below.

“Backup Special Tax” means the Special Tax applicable to each Assessor’s Parcel of Developed Property or portion thereof, as determined in accordance with Section C.1.c below.

“Bonds” means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 2022-1, pursuant to the Act which are secured by a pledge of the Special Taxes.

“Building Permit” means the first legal document issued by the City giving official permission for new construction of a building on an Assessor’s Parcel. For purposes of this definition, “Building Permit” shall include any subsequent building permits issued or changed prior to the first occupancy of the structure, as determined by the CFD Administrator.

“CFD Administrator” means the Finance Director or other official of the City responsible for determining the Special Tax Requirement, providing for the levy and collection of the Special Taxes and performing the other duties provided herein.

“CFD No. 2022-1” means Community Facilities District No. 2022-1 (Eclipse / Mountain House) of the City of Escondido.

“City” means the City of Escondido, California.

“City Council” means the City Council of the City, acting as the Legislative Body of CFD No. 2022-1, or its designee.

“C
ontractual Obligations” means (a) a voluntary contractual assessment established and lev
ied on an Assessor’s Parcel pursuant to Chapter 29 of Part 3 of Division 7 of the California Stre
ets and Highways Code (commencing with Section 5898.10 et seq.), as amended from time
to time, (b) a special tax established and levied on an Assessor’s Parcel pursuant to Sec
tion 53328.1 of the California Government Code and related provisions of the Act, as a
mended from time to time, and (c) any other fee, charge, tax, or assessment established and lev
ied on an individual Assessor’s Parcel pursuant to a contractual agreement or other volunta
ry consent by the owner thereof (e.g., property owner association assessments).

Attachment "1"
106
Item12.

C
ity of Escondido
Decemb
er 9, 2021
Community Facilities District No. 2022-1 Page 3 of 22

“Co
unty” means the County of San Diego, California.

“Developed Floor Area” means for any Dwelling Unit, the square footage of assessable space of such Dwelling Unit as defined in Government Code section 65995, subdivision (b)(1). For purposes of this determination, such square footage of assessable space shall be, and the City, acting for CFD No. 2022-1, may rely on, the square footage as identified on the Building Permit(s) issued by the City if found consistent with such code section. Modifications to the originally issued Building Permit made prior to first occupancy may occur and shall be used to adjust the determination of Developed Floor Area. Modifications made after first occupancy, such as additions, shall be subject to then current development fees and not used to determine the Developed Floor Area used in the application of this Rate and Method of Apportionment.

“Developed Property” means, for each Fiscal Year, all Taxable Property for which a Building Permit for new construction was issued prior to March 1 st of the
prior Fiscal Year.

“Dwelling Unit(s)” or “DU” means an individual single-family, detached or attached home, townhome, condominium, apartment, or other such residential Dwelling Unit, including each separate living area within a half-plex, duplex, triplex, fourplex, or other residential structure that comprises an independent facility capable of conveyance or as a rental separate from the primary Dwelling Unit(s).

“Exempt Property” means all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section F.

“Facilities” means the public facilities authorized to be financed, in whole or in part, by CFD No. 2022-1.

“Final Map” means a subdivision of property by recordation of a final tract map, parcel map, or lot line adjustment by the City, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), an applicable local ordinance or recordation of a condominium plan pursuant to California Civil Code Section 6624 or functionally equivalent map or instrument that creates individual lots for which Building Permits may be issued without further subdivision.

“Final Mapped Property” means, for each Fiscal Year, all Taxable Property, exclusive of Developed Property, Taxable Property Owner Association Property, and Taxable Public Property, which as of January 1 of the previous Fiscal Year was located within a Final Map.

“Fiscal Year” means the period starting July 1 and ending on the following June 30.

“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time.

Attachment "1"
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Use Category” means any of the categories listed in Section C and for Developed Property as listed in Table 1.

“Lot” means, for the property within Zone B, each of the 36 lots created for the purpose of development within the portion of Final Map 683-J contained within CFD No. 2022-1. The Assigned Special Tax per Lot within Zone B is applied to the first Building Permit issued for either Residential Property or Non-Residential Property. Building Permits issued for additional structures are not subject to the Assigned Special Tax for Zone B but are subject all fees as determined by the City.

“Maximum Special Tax” means for each Assessor’s Parcel and each Fiscal Year, the Maximum Special Tax, determined in accordance with Section C, below, that may be levied on such Assessor’s Parcel in such Fiscal Year.

“Minimum Sale Price” means the minimum price at which Dwelling Units of a given Land Use Category, or plan type if multiple are contained within a Land Use Category, have sold or are expected to be sold in a normal marketing environment, as estimated by the Price Point Consultant, and shall not include prices for such Dwelling Units that are sold at a discount to expected sales prices for the purposes of stimulating the initial sales activity with respect to such Land Use Category.

“Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit was issued for any type of non-residential use.

“Outstanding Bonds” means all Bonds which are deemed to be outstanding under an Indenture(s).

“Price Point Consultant” means any consultant or firm of such consultants selected by CFD No. 2022-1 that (a) has substantial experience in performing price point studies for residential Dwelling Units within community facilities districts established under the Act or otherwise estimating or confirming pricing for residential Dwelling Units in such community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of residential Dwelling Units in such community facilities districts, (c) is in fact independent and not under the control of CFD No. 2022-1, the City or the developer of CFD No. 2022-1, (d) does not have any substantial interest, direct or indirect, with or in (i) CFD No. 2022-1, (ii) the City, (iii) any owner of real property in CFD No. 2022-1, or (iv) any real property in CFD No. 2022-1, and (e) is not connected with CFD No. 2022-1 or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2022-1 or the City.

“Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant pursuant to Section D herein.

“Projected Dwelling Unit(s)” or “PDU” means 81 projected Dwelling Units within the original boundaries of Zone A and 32 projected Dwelling Units within the boundaries of the Annexed Area. The Assigned Special Tax for Nonresidential Developed Property per PDU is Attachment "1"
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termined based on the total number of projected dwelling units displaced based on the area of the Non-Residential Property as determined by the CFD Administrator. The Special Tax on Undeveloped Property is per PDU determined as described in Section C.2(a).

“Property Owner Association Property” means, for each Fiscal Year, any property within the boundaries of CFD No. 2022-1 that is owned by a property owner association, including any master or sub-association as shown on the equalized roll of the County which is available on or about July 1
st of
the Fiscal Year provided however, that no such classification shall reduce the Acreage of all Taxable Property within CFD No. 2022-1 to less than the minimum Acreage as described in Section F.

“Proportionately” means (a) for Developed Property in the first step of Section E below, that the ratio of actual Assigned Special Tax levy to the Maximum Assigned Special Tax rate is equal for all Assessor’s Parcels of Developed Property; (b) for Final Mapped Property in the second step of Section E, Proportionately means the ratio of the actual Special Tax levy per Projected Dwelling Unit in Zone A and per Lot in Zone B to the Maximum Special Tax per Projected Dwelling Unit in Zone A and per Lot in B, respectively, is equal for all Assessor’s Parcels of Final Mapped Property; (c) for Undeveloped Property in the third step of Section E below, Proportionately means that the ratio of the actual Special Tax levy per Projected Dwelling Unit in Zone A and per Lot in Zone B to the Maximum Special Tax per Projected Dwelling Unit in Zone A and per Lot in Zone B, respectively, is equal for all Assessor’s Parcels of Undeveloped Property; (d) for Developed Property in the fourth step of Section E, Proportionately means that the amount of the increase above the Assigned Special Tax levy, if necessary, is equal for all Assessor’s Parcels of Developed Property, except that if the Backup Special Tax limits the increase on any Assessor’s Parcel(s), then the amount of the increase shall be equal for the remaining Assessor’s Parcels; and (e) for Property Owner Association Property that is not Exempt Property and Public Property that is not Exempt Property in the fifth step of Section E, Proportionately means that the ratio of the actual Special Tax levy per Projected Dwelling Unit in Zone A and per Lot in Zone B to the Maximum Special Tax per Projected Dwelling Unit in Zone A and per Lot in Zone B, respectively, is equal for all Assessor’s Parcels of Property Owner Association Property and Public Property.

“Public Property” means, for each Fiscal Year, any property within the boundaries of CFD No. 2022-1 that is (i) used for rights-of-way or any other purpose and is owned by the federal government, the State, the County, the City or any other public agency as shown on the equalized roll of the County which is available on or about July 1 st of
the Fiscal Year or (ii)
encumbered by an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement as shown on the equalized roll of the County which is available on or about July 1
st of
the Fiscal Year, provided however, that no such classification shall reduce (i) the PDU of all Taxable Property within the original boundaries of Zone A of CFD No. 2022-1 to less than the minimum PDU as described in Section F, (ii) the PDU of all Taxable Property within the Annexed Area of Zone A of CFD No. 2022-1 to less than the minimum PDU as described in Section F, and (iii) the number of all Lots of all Taxable Property within Zone B of CFD No. 2022-1 to less than the minimum number of Lots as described in Section F, and provided that any property leased by a public agency to a private Attachment "1"
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ntity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in a Land Use Category in accordance with its zoning or use, whichever is greater.

“Rate and Method of Apportionment” means this “Rate and Method of Appointment of Special Taxes for Community Facilities District No. 2022-1 (Eclipse / Mountain House) of the City of Escondido.”

“Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more residential Dwelling Units.

“Special Tax” or “Special Taxes” means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within the boundaries of CFD No. 2022-1 in accordance with this Rate and Method of Apportionment.

“Special Tax Requirement” means that amount required in any Fiscal Year for CFD No. 2022-1 to: (i) pay Administration Expenses of CFD No. 2022-1 as provided in this Rate and Method of Apportionment; (ii) pay debt service on all Outstanding Bonds due in the calendar year that commences in such Fiscal Year; (iii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iv) pay any amounts required to replenish any reserve funds for all Outstanding Bonds; (v) pay directly for acquisition or construction of Facilities that are eligible to be financed through CFD No. 2022- 1 under the Act, as reasonably determined by the City, so long as the inclusion of such amount does not cause an increase in the Special Tax levy attributable to Final Mapped Property, Undeveloped Property, Public Property that is not Exempt Property, Property Owner Association Property that is not Exempt Property or the levy of the Backup Special Tax; (vi) fund in anticipation of reasonably anticipated delinquent Special Taxes based on the delinquency rate of Special Taxes within CFD No. 2022-1 levied in the previous Fiscal Year if available or if not available, the lowest delinquency rate of all community facilities districts of the City, less (vii) a credit for funds available to reduce the annual Special Tax levy after the issuance of Bonds, as determined by the CFD Administrator pursuant to the Indenture.

“State” means the State of California.

“Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD No. 2022-1 which have not been prepaid in full pursuant to Section I or, which are not exempt from the Special Tax pursuant to law or Section F below.

“Total Tax Burden” means for any Dwelling Unit, the annual Special Tax, together with ad valorem property taxes, special assessments, special taxes for any overlapping community facilities district, and any other taxes, fees, and charges which are levied and imposed on such Dwelling Unit and the real property on which it is located and collected by the County on property tax bills and which are secured by such Dwelling Unit and the real property on which it is located, assuming such Dwelling Unit had been completed, sold and subject to such levies and impositions, excluding both service charges, such as those related to sewer and trash, and Contractual Obligations, as defined herein.

Attachment "1"
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“Trust
ee” means the trustee or fiscal agent under an Indenture(s).

“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Final Mapped Property, Property Owner Association Property or Public Property.

“Zone(s)” means Zone A or Zone B as geographically identified on Exhibit “B” attached to this Rate and Method of Apportionment.

“Zone A” means the specific area identified on Exhibit “B” attached to this Rate and Method of Apportionment as Zone A of the CFD which includes Escondido Tract Map No. SUB15- 0022.

“Zone B” means the specific area identified on Exhibit “B” attached to this Rate and Method of Apportionment as Zone B of the CFD which includes a portion of Escondido Tract Map No. 683-J.

B. ASSIGNMENT TO LAND USE CATEGORIES

Ea
ch Fiscal Year, all Taxable Property within CFD No. 2022-1 shall be classified as being located within a Zone, and within each Zone as Developed Property, Final Mapped Property, Undeveloped Property, Property Owner Association Property that is not Exempt Property or Public Property that is not Exempt Property and shall be subject to Special Taxes in accordance with this Rate and Method of Apportionment determined pursuant to Sections C and E below.

An Assessor’s Parcel may contain both Developed Property subject to Special Taxes in accordance with Section C.1 and Taxable Property subject to Special Taxes as Final Mapped Property, Undeveloped Property, Property Owner Association Property that is not Exempt Property or Public Property that is not Exempt Property subject to Special Tax in accordance with Section C.2. Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property, and finally into Land Use Categories.

C. MAXIMUM SPECIAL TAX

An
Assessor’s Parcel may contain more than one Land Use Category. The Maximum Special Tax which may be levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax that can be imposed based on each Land Use Category applicable to such Assessor’s Parcel.

Attachment "1"
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1. De
veloped Property

a. Maximum Special Tax

The
Maximum Special Tax for each Assessor’s Parcel of Developed Property that is classified as Residential Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax.

The Maximum Special Tax for each Assessor’s Parcel of Developed Property that is classified as Non-Residential Property shall be the Assigned Special Tax described in Table 1.

b. Assigned Special Tax

The
Assigned Special Tax for each Assessor’s Parcel of Developed Property is shown in Table 1 below. Each Lot within Zone B shall only be classified as Developed Property at the time of the initial issuance of the first Building Permit on such Lot.

TABLE 1
Assigned Special Taxes for Developed Property

L
and Use
Category
Pro
perty
Description
Unit
Type
Develo
ped
Floor Area
Assigned
Special Tax Per
Taxable Unit
Z
one A
1 R
esidential Dwelling
Unit Less than
1,
200 sq. f
t. $2
,249.20
2 R
esidential Dwelling Unit 1,
200 sq. f
t. to 1,
400 sq.
ft. $2,371.25
3 R
esidential Dwelling Unit Greater than 1,400 sq. ft. $2,615.42 4 Non-R
esidential Projected
Dwelling Unit
NA $2,
558.01
Z
one B
1 R
esidential or
Non-R
esidential
Lo
t NA $1,790.42

c
. Backup Special Tax

The
Backup Special Tax for Assessor’s Parcels of Residential Property within each Zone of CFD 2022-1 is as described below.

1. For the property within the initial area of Zone A of CFD No. 2022-1 the Backup Special Tax per Dwelling Unit of Developed Property shall be $2,589.52 per Dwelling Unit.

Attachment "1"
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2. F
or the property within the Annexed Area of Zone A of CFD No. 2022-1, the Backup Special Tax per Dwelling Unit of Developed Property shall be $2,589.52 per Dwelling Unit.

3. For the property within Zone B of CFD No. 2022-1, the Backup Special Tax per Lot of Developed Property shall be $1,841.57 per Lot.

Notwithstanding the foregoing, (1) if all or any portion of the applicable Final Maps and/or condominium plan contained within the initial boundaries of Zone A or Zone B of CFD No. 2022-1 or (2) if all or any portion of the Final Map and/or condominium plan contained within the boundaries of the Annexed Area described in the second paragraph of this section is subsequently changed or modified, then in each case the Backup Special Tax for each Lot or Dwelling Unit of Residential Property in such Final Map or condominium plan area contained with the boundaries of CFD No. 2022- 1 that is changed or modified shall be recalculated as follows:

1. Determine the total Backup Special Tax anticipated to apply to the changed or modified Final Map or condominium plan area prior to the change or modification.

2. The result of paragraph 1 above shall be divided by the total number of Dwelling Units constructed or Projected Dwelling Units to be constructed within such changed or modified Final Map or condominium plan area contained within the boundaries of CFD No. 2022-1, as reasonably determined by the CFD Administrator.

3. The result of paragraph 2 is the Backup Special Tax per Dwelling Unit which shall be applicable to Assessor’s Parcels of Developed Property classified as Residential Property in such changed or modified Final Map or condominium plan area contained within the boundaries of CFD No. 2022-1.

2. Final
Mapped Property, Undeveloped Property, Property Owner Association Property and Public Property

The Maximum Special Tax for Final Mapped Property, Undeveloped Property, Property Owner Association Property that is not Exempt Property and Public Property that is not Exempt Property shall be determined within each Zone as follows:

a. Within Zone A of CFD No. 2022-1 the Maximum Special Tax for Final Mapped Property, Undeveloped Property, Property Owner Association Property that is not Exempt Property and Public Property that is not Exempt Property shall be $2,589.52 per Projected Dwelling Unit as shown in the fourth column of Table 2. Table 2 below identifies the Assessor Parcels in Zone A in Fiscal Year 2021-22, the Land Use Category for each Assessor’s Parcel and the number of Projected Dwelling Units assigned to each Assessor’s Parcel. At the beginning of each Fiscal Year prior to the issuance of Bonds, the CFD Administrator shall update the information in Table 2 Attachment "1"
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sed on changes in the Assessor Parcels, the Dwelling Units classified as Developed Property as the result of the issuance of Building Permits and modifications, if any, to the Final Map resulting in a change to the number of total PDU at buildout and/or assignment of such PDU to each Assessor Parcel Number. At the beginning of each Fiscal Year after the issuance of Bonds, the CFD Administrator shall update the information in Table 2 based on changes in the Assessor Parcels, the Dwelling Units classified as Developed Property as the result of the issuance of Building Permits and modifications, if any, to the Final Map resulting in a change to the assignment of such PDU to each Assessor Parcel Number, but there will be no changes made to the total PDU at buildout. Given the delay in assigning Assessor Parcel numbers in any given Fiscal Year, it is possible that an Assessor Parcel may consist of a portion that would otherwise be classified as Developed Property, and a portion that is classified into a different Land Use Category. In such cases, the CFD Administrator shall identify for each Assessor’s Parcel a number of Projected Dwelling Units within each such Land Use Category. The Special Tax that may be levied on each Assessor’s Parcel containing property assigned to the Land Use Categories of Undeveloped Property, Property Owner Association Property that is not Exempt Property and Public Property that is not Exempt Property within CFD No. 2022-1, in that Fiscal Year pursuant to Section E shall then be based on the number of Projected Dwelling Units determined for the Assessor’s Parcel and the Land Use Categories to which they are assigned.

TABLE 2
Zone A: Projected Dwelling Units per Assessor’s Parcel for Fiscal Year 2021-2022

Z
one A

Ass
essor’s
Parcel Numbers
Fiscal Year
2021-2022
Status of the
Assessor
Parcel
Number of
Dwelling Units
Classified as
Developed
Property
Number of
Projected
Dwelling Units
Not Classified as
Developed
Property
Total Projected
Dwelling Units
as Buildout*
In
itial Boundaries of Zone A (Final Map SUB15-00
22)
23 8-13
0-11-00 Final Map 0 5 5
23 8-13
0-26-00 Final Map 0 21 21
23 8-13
0-27-00 Final Map 0 55 55
Ann
exed Area of Zone A (Tentative Map SUB15-0023
)
23 8-13
0-35-00 Und
eveloped 0 16 16
23 8-13
0-36-00 Und
eveloped 0 16 16
T
otal 0 113 113
*
The above table shows the Projected Dwelling Units within Final Map SUB15-0022 and Tentative Map SUB15-0023. At the beginning of each Fiscal Year, the information will be revised as described above.

b. W
ithin Zone B of CFD No. 2022-1 the Maximum Special Tax for Final Mapped Property, Undeveloped Property, Property Owner Association Property that is not Exempt Property and Public Property that is not Exempt Property shall be $1,841.57 per Lot.

Attachment "1"
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D. AD

JUSTMENT OF THE MAXIMUM SPECIAL TAX ON DEVELOPED PROPERTY At
least 30 days prior to the first issuance of Bonds, the Assigned Special Tax on Developed Property (set forth on Table 1) shall be analyzed in accordance with and subject to the conditions set forth in this Section D unless waived at the City’s sole discretion. At such time, CFD No. 2022-1 shall select and engage a Price Point Consultant and the CFD Administrator shall request the Price Point Consultant to prepare a Price Point Study setting forth the Minimum Sales Price of Dwelling Units within each Zone and Land Use Category or plan type if multiple plan types are contained within one Land Use Category. If, based upon the results of the Price Point Study, the CFD Administrator calculates that the Total Tax Burden applicable to Dwelling Units within one or more Land Use Categories exceeds 1.80% of the Minimum Sales Price of such Dwelling Units, the Assigned Special Tax shall be reduced to the extent necessary to cause the Total Tax Burden that shall apply to all Dwelling Units within such Zone and Land Use Category(ies) to not exceed 1.80% of the Minimum Sales Price of such Dwelling Units. Each Assigned Special Tax reduction by Zone and Land Use Category shall be calculated by the CFD Administrator separately. It shall not be required that such reduction be proportionate among all Land Use Categories in a Zone. However, the CFD Administrator shall reduce the Assigned Special Tax for other Land Use Categories in a Zone, as applicable, to ensure that, after any reductions occurring pursuant to this Section, the Assigned Special Tax for any Land Use Category in a Zone is not less than the Assigned Special Tax for the any Land Use Category in such Zone containing a Dwelling Unit of a lesser Developed Floor Area. For example, the Assigned Special Tax for Land Use Category “2” is at least the Assigned Special Tax for Land Use Category “1”; if such is not true, the Assigned Special Tax for Land Use Category “1” is reduced to equal that of Land Use Category “2”. In connection with any reduction in the Assigned Special Tax, the Backup Special Tax for all Dwelling Units shall also be reduced by the CFD Administrator based on the percentage reduction in Assigned Special Tax revenues for each Land Use Category subject to reduction. The Special Tax reductions required pursuant to this paragraph shall be reflected in an amended notice of Special Tax lien which CFD No. 2022-1 shall cause to be recorded by executing a certificate in substantially the same form as Exhibit A attached hereto.

The Special Tax reductions required in this section shall become effective in the Fiscal Year following such actions and applied to levy of Special Taxes in such following Fiscal Year.

There will be no adjustments made to the current Fiscal Year levy.

E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

Comme
ncing with Fiscal Year 2022-2023 and for each following Fiscal Year, the CFD Administrator shall levy the Assigned Special Tax on Developed Property at 100% prior to the issuance of Bonds. After the issuance of Bonds, the CFD Administrator shall determine the Special Tax Requirement for such Fiscal Year. The Special Tax shall then be levied as follows:

First: If needed to satisfy the Special Tax Requirement or prior to the issuance of Bonds, the Spec
ial Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax; and
Attachment "1"
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Sec
ond: If additional moneys are needed to satisfy the Special Tax Requirement after the first step
has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Final Mapped Property in an amount up to 100% of the Maximum Special Tax for Final Mapped Property to satisfy the Special Tax Requirement; and

Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps ha
s been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property in an amount up to 100% of the Maximum Special Tax for Undeveloped Property to satisfy the Special Tax Requirement; and

Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first thre
e steps have been completed, the levy of the Special Tax on each Assessor’s Parcel of Developed Property for which the Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax; and

Fifth: If additional moneys are needed to satisfy the Special Tax Requirement after the first fo
ur steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Public Property which is not Exempt Property and Property Owner Association Property which is not Exempt Property at up to 100% of the Maximum Special Tax for Property Owner Association Property and Public Property to satisfy the Special Tax Requirement.

F. EXEMPTIONS

An
y Assessor’s Parcel within the boundaries of CFD No. 2022-1 that is owned or irrevocably dedicated to a public agency as of the date of formation of CFD No. 2022-1 shall be classified as Exempt Property and shall be exempt from the Special Tax in accordance with Section 53340 of the Act. The total number of Projected Dwelling Units within the original boundaries of Zone A of CFD No. 2022-1 has been determined to be equal to 81 PDU, the total number of Projected Dwelling Units within the Annexed Area of Zone A has been determined to be 32 PDU, and the total number of Lots projected to contain Developed Property within Zone B of CFD No. 2022-1 has been determined to be equal to 36 Lots as of the date of formation of CFD No. 2022-1, subject to change as set forth herein.

Except as limited in the following paragraph, the following Assessor’s Parcels within the boundaries of CFD No. 2022-1 shall be classified as Exempt Property: (i) Assessor's Parcels which are classified by definition as Public Property or Property Owner Association Property, (ii) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, and (iii) Assessor’s Parcels which are used for other types of public uses as determined by the CFD Administrator.

Ta
x exempt status will be irrevocably assigned by the CFD Administrator in the chronological order in which property becomes Public Property or Property Owner Association Property Attachment "1"
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ovided however, that no such classification shall reduce (i) the Projected Dwelling Units of all Taxable Property within the original boundaries of Zone A of CFD No. 2022-1 to less than 79 PDU, (ii) the Projected Dwelling Units of all Taxable Property within the Annexed Area of Zone A of CFD No. 2022-1 to less than 31 PDU and, (iii) the total number of Lots projected to contain Developed Property within Zone B of CFD No. 2022-1 to less than 35 Lots, each as determined by the CFD Administrator. Public Property or Property Owner Association Property that would, if designated as Exempt Property, cause (i) the Projected Dwelling Units of all Taxable Property within the original boundaries of Zone A of CFD No. 2022-1 to less than 79 PDU, (ii) the Projected Dwelling Units of all Taxable Property within the Annexed Area of Zone A of CFD No. 2022-1 to less than 31 PDU and, (iii) the total number of Lots projected to contain Developed Property within Zone B of CFD No. 2022-1 to less than 35 Lots shall be required to either (i) prepay the Special Tax for such property in full per PDU for Zone A or per Lot for Zone B for Property Owner Association Property or Public Property applied to such property, which resulting amount is to be used as the Assigned Special Tax in the calculation of the prepayment pursuant to Section I.1 or (ii) be subject to taxation pursuant to the fourth step of Section E.

G. APPEAL

An
y property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the CFD Administrator. The written notice of appeal must be filed within the same Fiscal Year for which the Special Tax that is disputed was levied and the property owner must be current and remain current in the payment of all Special Taxes levied.

The CFD Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the CFD Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, an adjustment shall be made to the Annual Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s) and a refund, as described, shall be made representing the amount of the adjustment for the most recent Fiscal Year. The CFD Administrator shall determine if funds are available to provide such refund or, if funds are not available in the sole discretion of the CFD Administrator to provide a cash refund, a credit to the levy of Special Tax in one or more subsequent Fiscal Years shall be made in the same amount.

This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal actions by such property owner.

H. MANNER OF COLLECTION

The
Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2022-1 may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet Attachment "1"
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financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

I. PREPAYMENT OF SPECIAL TAX

The fo
llowing definitions apply to this Section I:

“CFD Public Facilities” means $3,863,462 in Fiscal Year 2021-2022 dollars, or such lower number as determined by the CFD Administrator to be sufficient to fund the Facilities to be provided by CFD No. 2022-1.

“Expenditures Fund” means funds or accounts, regardless of their names, which are established to hold moneys that are available to acquire or construct Facilities.

“Future Facilities Costs” means the CFD Public Facilities minus (i) Facilities costs previously paid from the Expenditures Fund, (ii) moneys currently on deposit in the Expenditures Fund, and (iii) moneys currently on deposit in an escrow fund that are expected to be available to finance Facilities costs. The required and unfunded portion of this amount may increase by 2% annually to the extend such resulting Future Facilities Costs are able to be funded by CFD No. 2022-1 as determined by the CFD Administrator. In no event shall the amount of Future Facilities Costs be less than zero.

1. Pr
epayment in Full

The
Maximum Special Tax obligation may be prepaid and permanently satisfied for an Assessor’s Parcel of Developed Property, Final Mapped Property or Undeveloped Property for which a Building Permit has been issued or is pending to be issued, and Public Property and/or Property Owner’s Association Property that is not Exempt Property pursuant to Section F. The Prepayment Amount for an Assessor’s Parcel of Undeveloped Property for which a Building Permit has been issued or is pending to be issued shall be based on the Assigned Special Tax for the applicable Land Use Category shown in Table 1 based on the Building Permit for such Assessor’s Parcel and the then current Special Tax rates. The Maximum Special Tax obligation applicable to such Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay, and within five (5) days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non- refundable deposit determined to cover the cost to be incurred by CFD No. 2022-1 in calculating the proper amount of a prepayment. Within fifteen (15) business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount of such Assessor’s Parcel.

The Special Tax Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):

Attachment "1"
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Bond Re
demption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
e
quals Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated by the CFD Administrator as follows:

Paragraph No.

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

2. Compute the Assigned Special Tax and Backup Special Tax for the Assessor’s Parcel to be prepaid based on the Developed Property Special Tax which is, or could be, charged in the current Fiscal Year. For Assessor’s Parcels of Final Mapped Property (for which a Building Permit has been issued or pending but which is not yet classified as Developed Property) to be prepaid, compute the Assigned Special Tax and Backup Special Tax for that Assessor’s Parcel or portion thereof as though it was already designated as Developed Property, based upon the Building Permit .

3. (a) Divide the Assigned Special Tax computed pursuant to Paragraph 2 by the total estimated Assigned Special Tax for CFD No. 2022-1 based on the Developed Property Special Tax which could be charged in the current Fiscal Year on all expected development through buildout of CFD No. 2022-1, excluding any Assessor’s Parcels which have been prepaid, and
(b) Divide the Backup Special Tax computed pursuant to Paragraph 2 by the estimated total Backup Special Tax at buildout of CFD No. 2022-1, excluding any Assessor’s Parcels which have been prepaid.

4. Multiply the larger quotient computed pursuant to Paragraph 3(a) or 3(b) by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount computed pursuant to Paragraph 4 by the applicable redemption premium (e.g., the redemption price minus 100%), if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Compute the current Future Facilities Costs.

7. Multiply the larger quotient computed pursuant to Paragraph 3(a) or 3(b) by the amount determined pursuant to Paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the “Future Facilities Amount”).

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8. Compute
the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds.

9. Determine the Special Tax levied on the Assessor’s Parcel in the current Fiscal Year which has not yet been paid.

10. Add the amounts computed pursuant to Paragraphs 8 and 9 to determine the “Defeasance Amount”.

11. Verify the administrative fees and expenses of CFD No. 2022-1, including the costs to compute the prepayment, the costs to invest the prepayment proceeds, the costs to redeem Bonds, and the costs to record any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).

12. If reserve funds for the Outstanding Bonds, if any, are at or above 100% of the reserve requirement (as defined in the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the reserve requirement on the prepayment date or the redemption date.

13. The amount due to fully prepay the Special Tax is equal to the sum of the amounts computed pursuant to Paragraphs 4, 5, 7, 10, and 11, less the amount computed pursuant to Paragraph 12 (the “Prepayment Amount”).

14. From the Prepayment Amount, the amounts computed pursuant to Paragraphs 4, 5, 10, and 12 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to Paragraph 7 shall be deposited into the Expenditures Fund. The amount computed pursuant to Paragraph 11 shall be retained by CFD No. 2022-1.

The Special Tax Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment above $5,000, or integral multiple thereof, will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of Bonds or to make debt service payments.

Upon cash payment of the Prepayment Amount due pursuant to the above and upon owner providing confirmation from the County to the CFD Administrator that all prior and current Fiscal Year’s Special Taxes, including any delinquency penalties and interest, for such Assessor’s Parcel has been paid, the City shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Assessor’s Parcel, and the obligation of such Assessor’s Parcel to pay the Special Tax shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied on Taxable Property both prior to and after the Attachment "1"
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oposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds.

2. Prepayment in Part

The
Maximum Special Tax on an Assessor’s Parcel of Developed Property or an Assessor’s Parcel of Undeveloped Property for which a Building Permit has been issued may be partially prepaid, provided an Assessor’s Parcel of Developed Property may only be partially prepaid prior to or concurrent with the close of escrow of a sale to the initial homebuyer. The amount of the prepayment shall be calculated as in Section H.1; except that a partial prepayment shall be calculated according to the following formula:

PP = (P
E x F
) + G

These terms have the following meaning:

PP = the partial Prepayment Amount
P
E =
the Prepayment Amount calculated according to Section H.1.a.

F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Maximum Special Tax.

G = the administrative fee determined in Section H.1.b.

The Special Tax partial Prepayment Amount must be sufficient to redeem at least a $5,000 increment of Bonds, unless waved by the CFD Administrator.

The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax, and (ii) the percentage by which the Maximum Special Tax shall be prepaid, and within five (5) days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2022-1 in calculating the proper amount of a partial prepayment. Within fifteen (15) days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the partial Prepayment Amount of such Assessor’s Parcel.

With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the funds remitted pursuant to Section H.1.d, and (ii) indicate in the records of CFD No. 2022-1 that there has been a partial prepayment of the Maximum Special Tax and that a portion of the Assigned Special Tax and Backup Special Tax equal to the outstanding percentage (1.00 - F) of the Assigned Special Tax and Backup Special Tax shall continue to be authorized to be levied on such Assessor’s Parcel pursuant to Section E.

J. TERM OF THE SPECIAL TAX

The
Special Tax shall not be levied beyond Fiscal Year 2075-2076.

Attachment "1"
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EXHIBIT A

CER

TIFICATE OF MODIFICATION OF SPECIAL TAXES
(Page 1 of 2)

CITY OF ESCONDIDO AND CFD No. 2022-1 CERTIFICATE

1. Pursua
nt to Section C.1 of the Rate and Method of Apportionment for the City of Escondido Community Facilities District No. 2022-1 (Eclipse / Mountain House) (“CFD No. 2022-1”), the Assigned Special Tax for Developed Property within CFD 2022-1 has been modified. This calculation was based upon a Price Point Study that received by the CFD Administrator on _____________________.

a. The information in Table 1 relating to the Assigned Special Tax for Developed Property with CFD No. 2022-1, as stated in Section C.1.b of the Rate and Method of Apportionment, has been modified as follows:

TABLE 1
Assigned Special Taxes for Developed Property
Commencing Fiscal Year 20___-20___

L
and Use
Category
Pro
perty
Description
Unit
Type
Developed
Floor Area
Assigned
Special Tax Per
Taxable Unit
Z
one A
1 R
esidential DU Less than
1,
200 sq. f
t. $[___
]
2 R
esidential DU 1,
200 sq. f
t. to 1,
400 sq.
ft. $[
]
3 R
esidential DU Greater than 1,400 sq. ft. $[ ] 4 Non-R
esidential PDU NA $[ ]
Z
one B
1 R
esidential DU NA $[ ]
2 Non-R
esidential Lot NA $[ ]

b. I
n connection with any reduction in the Assigned Special Tax, the Special Tax for Final Mapped Property, Undeveloped Property, Property Owner Association Property and Public Property per Acre as set forth in Section C.2 and the Backup Special Tax as set forth in Section C.1.c shall also be reduced by the CFD Administrator based on the recalculation of the Undeveloped Special Tax. The Backup Special Tax for Developed Property, as stated in Section C.1.c, shall be modified, to the extent the Final Map has been recorded, as follows:

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EXHIBIT A

CER

TIFICATE OF MODIFICATION OF SPECIAL TAXES
(Page 2 of 2)

TABLE 2
Backup Special Taxes for Developed Property
Commencing Fiscal Year 20___-20___

Z
one Backup Special Tax per Dwelling Unit or Lot*
Zo
ne A $[ ]
Zo
ne B $[ ]
*
Note: The Backup Special Tax per lot or Dwelling Unit shown may be modified as described in the Rate and Method of Apportionment for CFD No. 2022-1.

2. The
Special Tax for Developed Property may only be modified prior to the first issuance of CFD No. 2022-1 Bonds as defined in the Rate and Method of Apportionment.

3. Upon execution of this certificate by CFD No. 2022-1, CFD No. 2022-1 shall cause an amended Notice of Special Tax lien for CFD No. 2022-1 to be recorded reflecting the modifications set forth herein.

By execution hereof, the undersigned acknowledges, on behalf of the City and CFD No. 2022-1, receipt of this certificate and modification of the Rate and Method of Apportionment as set forth in this certificate.

CITY OF ESCONDIDO COMMUNITY FACILITIES DISTRICT NO. 2022-1 (ECLIPSE /

MOUNTAIN HOUSE)

By: Da
te:

Attachment "1"
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EXHIBIT B

DEP

ICTION OF ZONE LOCATION

Attachment "1"
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1 OF 2
DECEMBER 2021
CFD2022-1
SHEET
DATE
JOB NO.
437 WEST GRAND AVENUE
ESCONDIDO, CALIFORNIA 92025
TELEPHONE: (760)233-2630
FAX: (760)233-2631
SDFA

SPECIAL DISTRICT FINANCING
& ADMINISTRATION

OF THE CITY OF ESCONDIDO

COUNTY OF SAN DIEGO

STATE OF CALIFORNIA

BOUNDARY MAP OF
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(ECLIPSE/MOUNTAIN HOUSE)
1 LEGEND:

LOT NUMBER

COMMUNITY FACILITIES

DISTRICT BOUNDARY (ZONE A)

FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF ESCONDIDO, THIS ______ DAY OF _________________, 20______.

BY: _____________________________________

CITY CLERK

CITY OF ESCONDIDO

STATE OF CALIFORNIA

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING THE BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2022-1 OF THE CITY OF

ESCONDIDO, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, WAS

APPROVED BY THE CITY COUNCIL OF THE CITY OF ESCONDIDO AT A REGULAR MEETING THEREOF, HELD ON THE _________ DAY OF
_______________, 20______, BY ITS RESOLUTION NO._______________.

BY: _____________________________________

CITY CLERK

CITY OF ESCONDIDO

STATE OF CALIFORNIA
FILED THIS _____________ DAY OF ___________________ , 20____, AT THE HOUR OF _________ O’CLOCK ________ .M. AS DOCUMENT NO. ________________IN BOOK _____ PAGE(S) ______________ OF

MAPS OF ASSESSMENTS AND COMMUNITY FACILITIES DISTRICTS IN

THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF SAN
DIEGO, CALIFORNIA.

BY: _____________________________________

DEPUTY RECORDER
COUNTY RECORDER, ERNST J. DRONENBURG, JR.

COUNTY OF SAN DIEGO

STATE OF CALIFORNIA
1 3
2 5 4

BROTHERTON RD

CENTRE CITY PKWY
Scale In Feet
2000 100100
ZONE A
NAP

FUTURE AREA OF ANNEXATION
(ZONE A)
Attachment "1"
125
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SHEET
DATE
JOB NO.
437 WEST GRAND AVENUE
ESCONDIDO, CALIFORNIA 92025
TELEPHONE: (760)233-2630
FAX: (760)233-2631
SDFA

SPECIAL DISTRICT FINANCING
& ADMINISTRATION
Scale In Feet
8000 400400 2 OF 2
DECEMBER 2021
CFD2022-1

OF THE CITY OF ESCONDIDO

COUNTY OF SAN DIEGO

STATE OF CALIFORNIA

BOUNDARY MAP OF
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(ECLIPSE/MOUNTAIN HOUSE)
1 LEGEND:

LOT NUMBER

COMMUNITY FACILITIES

DISTRICT BOUNDARY (ZONE B)
6 7
9 24
8 10
11 17
12 13
14 18
15 16 19
20 22
25 26
27 28
29 30
31 32
33 34
35 36
40 41
42 39
43 44
45 38
37 21
23 NAP NOT A PART
NAP
NAP
46 HAMPTON
GLN

WOODLAND

HEIGHTS
GLN

KENSINGTON
GLN
NAP

MESA ROCK RD
NAP
ZONE B
Attachment "1"
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Attachment "2"
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Attachment "2"
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RESOLUTION NO. 2022-10

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ESTABLISHING COMMUNITY
FACILITIES DISTRICT NO. 2022 -1 OF THE CITY OF

ESCONDIDO (ECLIPSE/MOUNTAIN HOUSE), AND

FUTURE ANNEXATION AREA, AUTHORIZING THE LEVY

OF A SPECIAL TAX THEREIN, CALLING AN ELECTION AND

APPROVING AND AUTHORIZING CERTAIN ACTION

RELATED THERETO

WHEREAS, the City Council (“City Council”) of the City of Escondido (“City”) has heretofore adopted Resolution No. 2022-02 stating its intention to form Community Facilities District No. 2022 -1 of the City of Escondido (Eclipse/Mountain House) (“Community Facilities Distri ct No. 2022 -1” or the “District”) and to designate certain parcels as territory proposed for future annexation into the District (the “Future Annexation Area”), pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of P art 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and
WHEREAS, a copy of Resolution No. 2022 -02 setting forth a description of the proposed boundaries of Community Facilities District No. 2022-1 and the Future Annexation Area, the facilities and incidental expenses to be financed by the District and the Future Annexation Area, and the rate and method of apportionment of the special tax proposed to be levied within the District and the Future Annexation Area is on file with the City Clerk; and
WHEREAS, notice was published and mailed to all landowners of the land proposed to be included within the District as required by law relative to the intention of this City Council to form proposed Community Facilities Dist rict No. 2022 -1 and the Future Annexation Area and to levy a special tax (the 134
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“Special Tax”) and to incur bonded indebtedness in the amount of up to $6,000,000 therein to finance the facilities and incidental expenses described in Resolution No. 2022-02; and WHEREAS, on March 2, 2022, this City Council conducted a noticed public hearing as required by law relative to the proposed formation of Community Facilities District No. 2022 -1 and the Future Annexation Area, the levy of the Special Tax therein and th e issuance of bonded indebtedness by the District; and
WHEREAS, at the March 2, 2022 public hearing there was filed with this City Council a report containing a description of the facilities necessary to meet the needs of the District and the Future Annexation Area and an estimate of the cost of such facilities as required by Section 53321.5 of the Act (the “CFD Report”); and
WHEREAS, at the March 2, 2022 public hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2022-1 and the Future Annexation Area, the levy of the Special Tax and the issuance of bonded indebtedness were heard and full and fair hearings were held; and
WHEREAS, following the public hearing, this City Council has determi ned to authorize the formation of the District and the Future Annexation Area to finance the types of facilities (the “Facilities”) and the incidental expenses (the “Incidental Expenses”) set forth in Exhibit “ A” hereto, which are described in more detail in the CFD Report; and
WHEREAS, at the public hearing evidence was presented to this City Council on the matters before it, and the proposed Special Tax to be levied within the District was not precluded by a majority protest of the type described in Sect ion 53324 of the Act, and this City Council at the conclusion of the hearing 135
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was fully advised as to all matters relating to the formation of the District and the Future Annexation Area, the levy of the Special Tax and the issuance of bonded indebtedness by the District; and WHEREAS, this City Council has determined, based on a Certificate of Registrar of Voters of the County of San Diego on file in the office of the City Clerk, that no registered voters have been residing in the proposed boundaries of Com munity Facilities District No. 2022 -1 for each of the 90 days prior to March 2, 2022 and that the qualified electors in Community Facilities District No. 2022 -1 are the landowners within the District; and
WHEREAS, on the basis of all of the foregoing, thi s City Council has determined to proceed with the establishment of Community Facilities District No. 2022-1 and the Future Annexation Area and to Call an election therein to authorize (i) the levy of Special Tax pursuant to the rate and method of apportionment of the special tax, as set forth in Attachment C to Resolution No. 2022 -02 (the “Rate and Method”), (ii) the issuance of bonds to finance the Facilities and Incidental Expenses, and (iii) the establishment of an appropriations limit for Community Facilities District No. 2022-1; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California :

1. That the above recitations are true.

2. That a community facilities district to be designated “Community Facilities District No. 2022-1 of the City of Escondido (Eclipse/Mountain House)” is hereby established pursuant to the Act. The future annexation area designated as “Community Facilities District No. 2022 -1 of the City of Escondido (Eclipse/Mountain House) (Future Annexation Area)” is hereby established pursuant to the Act. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District and the Future Annexation Area were valid and in conformity with the requiremen ts of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act. 136
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3. That the boundaries of Community Facilities District No. 2022-1 are established as shown on the map designated “Boundary Map of Comm unity Facilities District No. 2022 -1 (Eclipse/Mountain House) City of Escondido, County of San Diego, State of California”, which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor-County Clerk- Recorder’s office of the County of San Diego in Book No. 49 Page Nos. 89-90 on February 1, 2022 as Instrument No. 2022-7000033.

Parcels within the Future Annexation Area shall be annexed to the District and subjected to the special tax of the District only with the unanimous approval of the owner or owners of the parcel or parcels at the time of annexation or in compliance with other procedures established by the Act. The City Council hereby determines that any property for which the owner or owners execute a Unanimous Approval shall be added to the District and the City Clerk shall record an amendment to the notice of special tax lien for the District pursuant to Section 3117.5 of the Streets & Highways Code.

4. That t he types of Facilities and Incidental Expenses authorized to be provided for Community Facilities District No. 2022 -1, and, when it has been annexed to the District, the Future Annexation Area, are those set forth in Exhibit “A” attached hereto. The estimated cost of the Facilities and Incidental Expenses to be financed is set forth in the CFD Report, which estimates may change as the Facilities are designed and bid for construction and acquisition, as applicable.

The City is authorized by the Act to contribute revenue to, or to construct or acquire the Facilities, all in accordance with the Act. The City Council finds and determines that the proposed Facilities are necessary to meet the increased demand that will be placed upon local agencies and public infrastructure as a result of new development within the District and that the Facilities to be financed benefit residents of the City and the future residents of the District and the Future Annexation Area. 137
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5. That except where funds are otherwise available, it is the intention of this City Council, subject to the approval of the eligible voters of the District, to levy annually a Special Tax at the rates set forth in the Rate and Method on all non -exempt property within the District sufficient to pay for (i) the Facilities; (ii) the Incidental Expenses; and (iii) the principal and interest and other periodic costs on the bonds proposed to be issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of reserve funds, any remarketing, credit enhancement and liquidity facility fees and other expenses of the type permitted by Section 53345.3 of the Act. The District expects to incur, and in certain cases has already incurred, Incidental Expenses in connection with the creation of the District and the Future Annexation Area, the issuance of bonds, the levying and collecting of the Special Tax, the completion and inspection of the Facilities and the annual administration of the bonds and the District and the Future Annexation Area. The Rate and Method is described in detail in Attachment C to Resolution No. 2022-02 and incorporated herein by this reference, and the City Council hereby finds that the Rate and Method contains sufficient detail to allow each landowner within the District to estimate the maximum amount of Special Taxes that may be levied against each parcel. As described in greater detail in the CFD Report, which is incorporated by reference herein, the Special Tax is based on the expected demand that each parcel of real property within Community Facilities District No. 2022-1 will place on the Facilities and on the benefit that each parcel will derive from the right to access the Facilities and, accordingly, is hereby determ ined to be reasonable. The Special Tax shall be levied on each assessor’s parcel in accordance with the Rate and Method provided, however, that the Special Tax shall not be levied on any taxable parcel beyond 50 years after such parcel was classified as D eveloped Property in accordance with the Rate and Method. The Special Tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such Special Tax is not on or based upon the ownership of real property or the assessed value of real property. 138
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If Special Taxes of the District are levied against any parcel used for private residential purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to the Special Tax because of its use for private residential purposes and shall not be increased over time except as authorized under the Rate and Method, (ii) the Special Tax shall not be levied on any taxable parcel beyond 50 years after such parcel was classified as Developed Property in accordance with the Rate and Method, and (iii) under no circumstances will the Special Tax levied against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

The City Manager of the City of Escondido, will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s parcel number and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act.

6. That in the event that a portion of the property within Community Facilities District No. 2022-1 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified in the Rate and Method, or in the event of delinquencies in the payment of Special Taxes levied, the City Council shall, on behalf of Community Facilities District No. 2022 -1, increase the levy to the extent necessary and permitted by law and these proceedings upon the remaining property within Community Facilities District No. 2022-1 which is not exempt or delinquent in order to yield the required debt service payments on any outstanding bonds of the District, or to prevent the District from defaulting on any of its other obligations or liabilities; provided, however, u nder no circumstances will the Special Tax levied against any parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent 139
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above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. The amount of the Special Tax will be set in accordance with the Rate and Method. The obligation to pay Special Taxes may be prepaid only as set forth in Section G of the Rate and Method.

7. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all non-exempt real property in the District and this lien shall continue in force and effect until the Special Tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the Special Tax by the District ceases.

8. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within Community Facilities District No. 2022 -1, if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within Community Facilities District No. 2022 -1 and will be benefited by the Facilities proposed to be provided within Community Facilities District No. 2022-1.

9. It is hereby further determined that there is no ad valorem property tax currently being levied on property within proposed Community Facilities District No. 2022-1 for the exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred to finance the construction of capital facilities which provide the same services to the territory of Community Facilities District No. 2022- 1 as are proposed to be provided by the Facilities to be financed by Community Facilities District No. 2022-

1. 10. Written protests against the establishment of the District or the Future Annexation Area have not been filed by one -half or more of the registered voters within the boundaries of the District or 140
Item12.

the Future Annexation Area or by the property owners of one-half (1/2) or more of the area of land within the District or the Future Annexation Area. The City Council hereby finds that the proposed Special Tax has not been precluded by a majority protest pursuant to Section 53324 of the Act.

11. An ele ction is hereby called for Community Facilities District No. 2022 -1 on the propositions of levying the special tax on the property within Community Facilities District No. 2022-1 and establishing an appropriations limit for Community Facilities District No . 2022 -1 pursuant to Section 53325.7 of the Act and shall be consolidated with the election on the proposition of incurring bonded indebtedness for Community Facilities District No. 2022-1, pursuant to Section 53351 of the Act.

The propositions to be placed on the ballot for the District are attached hereto as Exhibit “B”.

12. The date of the election within Community Facilities District No. 2022-1 shall be March 2, 2022, or such later date as is consented to by the City Clerk and the landowners within Co mmunity Facilities District No. 2022-1. The City Clerk shall conduct the election. Except as otherwise provided by the Act, the election shall be conducted by personally delivered or mailed ballot and, except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Escondido insofar as such provisions are determined by the City Clerk to be applicable.

It is hereby found that there are not more than twelve registered vot ers within the territory of Community Facilities District No. 2022-1, and, pursuant to Section 53326 of the Act, each landowner who is the owner of record on the date hereof, or the authorized representative thereof, shall have one vote for each acre or po rtion thereof that he, she or it owns within Community Facilities District No. 2022 -1.

The voters shall be the landowners of record within Community Facilities District No. 2022-1 as of March 2, 2022.
141
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13. The preparation of the CFD Report is hereby ratified. The CFD Report, as submitted, is hereby approved and was made a part of the record of the public hearing regarding the formation of Community Facilities District No. 2022-1 and the Future Annexation Area. The CFD Report is ordered to be kept on file with the transcript of these proceedings and open for public inspection.

14. This Resolution shall be effective upon its adoption.

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Resolution No. 2022-10
Exhibit “A”

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ATTACHMENT A
Types of Facilities To Be
Financed By Community
Facilities District No. 2022-1
The proposed types of public facilities and expenses to be financed by the District include:

The construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) water and wastewater, drainage, park, local and r egional traffic, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended (the “City Facilities”), and all appurtenances and appurtenant work in connection with the foregoing City Facilities, and to finance the incidental expenses to be incurred, including:
a. Engineering, planning, designing, materials testing , coordination, construction staking, construction management and supervision for such City Facilities, and the cost of engineering, planning and designing the City Facilities; b. All costs, including costs of the property owners petitioning to form the Di strict, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expe nses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the City Facilities.

Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District.

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Resolution No. 2022-10
Exhibit “B”

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ATTACHMENT B

BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2022-1

OF THE CITY OF ESCONDIDO (ECLIPSE/MOUNTAIN HOUSE)

SPECIAL TAX AND SPECIAL BOND ELECTION
March 2, 2022

PROPOSITION A: Shall Community Facilities District No. 2022-1 of the City of Escondido (Eclipse/Mountain House) (the “District”) incur an indebtedness and issue bonds in the maximum principal amount of $6,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses de scribed in Resolution No. 2022 -02 of the City Council of the City of Escondido?

YES______
NO_______

PROPOSITION B: Shall a special tax with a rate and method of apportionment as provided in Resolution No. 2022 -02 of the City Council of the City of Escondido be levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 2022-02, including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental Expenses?

YES______
NO_______
PROPOSITION C: For each year commencing with Fiscal Year 2022-23, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities District No. 2022-1 be an amount equal to $6,000,000?

YES______
NO_______

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RESOLUTION NO. 2022-11

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ACTING AS THE LEGISLATIVE
BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-1 OF

THE CITY OF ESCONDIDO (ECLIPSE/MOUNTAIN HOUSE)

DETERMINING THE NECESSITY TO INCUR BONDED

INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED
$6,000,000 WITHIN COMMUNITY FACILITIES DISTRICT NO.
2022-1 OF THE CITY OF ESCONDIDO (ECLIPSE/MOUNTAIN

HOUSE) AND CALLING AN ELECTION THEREIN
WHEREAS, on January 26, 2022 , the City Council of the City of Escondido (the “City Council”) adopted Resolution No. 2022-02 stating its intention to form Community Facilities District No. 2022-1 of the City of Escondido (Eclipse/Mountain House) (“Community Facilities District No. 2022-1” or the “District”) and a future annexation area (the “Future Annexation Area”) within the District pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”); and WHEREAS, on January 26, 2022, the City Council also adopted Resolution No. 2022-08 stating its intention to incur bonded indebtedness in the amount of up to $6,000,000 within proposed Community Facilities District No. 2022-1 to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of public facilities identified in Attachment B to Resolution No. 2022-02, and (2) the inc idental expenses to be incurred in financing such public facilities and forming and administering the District and the Future Annexation Area , as identified in Attachment B to Resolution No. 2022-02; and
WHEREAS, notice was published as required by law relative to the intention of the City Council to form proposed Community Facilities District No. 2022-1 and the Future Annexation Area therein and to incur bonded indebtedness in the amount of up to $ 6,000,000 within the boundaries of proposed Community Facilities District No. 2022-1; and
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WHEREAS, on March 2, 2022, this City Council conducted a noticed public hearing to determine whether it should proceed with the formation of Community Facilities District No. 2022-1 and the Future Annexation Area, issue bonds to pay for the facilities and incidental expenses described in Resolution No. 2022-02 and authorize the rate and method of apportionment of a special tax to be levied within Community Facilities District No. 2022-1 for the purposes described in Resolution No. 2022-02; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2022-1 and the Future Annexation Area, the levy of a special tax and the issuance of bonds to pay for the cost of the proposed facilities and incidental expenses were heard and a full and fair hearing was held; and
WHEREAS, the City Council subsequent to such hearing adopted a re solution establishing Community Facilities District No. 2022-1 (the “Resolution of Formation”) and authorizing the financing of the public facilities (the “Facilities”) and the incidental expenses (the “Incidental Expenses”) described in Attachment B thereto; and
WHEREAS, the City Council desires to make the necessary findings to incur bonded indebtedness within the District, to declare the purpose for said debt, and to authorize the submittal of a proposition to issue bonded indebtedness to the voters of the District, being the landowners within the proposed District, all as authorized and required by law;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. It is necessary to incur bonded indebtedness in a maximum aggregate principal amount not to exceed $6,000,000 within Community Facilities District No. 2022-1.

2. The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, or rehabilitating the Facilities and financing the Incidental 146
Item12.

Expenses, as described in the Resolution of Formation, and carrying out the powers and purposes of Community Facilities District No. 2022-1, including, but not limited to, financing the costs of selling the bonds, establishing and replenishing bond reserve funds and paying remarketing, credit enhancement and liquidity facility fees and other expenses of the type authorized by Section 53345.3 of the Act.

3. The whole of the property within Community Facilities District No. 2022-1, other than property exempted from the special tax pursuant to the provisions of the rate and method of apportionment attached to Resolution No. 2022-02 as Attachment C, shall pay for the bonded indebtedness pursuant to the levy of the special tax authorized by the Resolution of Formation.

4. The maximum term of the bonds to be issued shall in no event exceed 35 years or such longer term as is then permitted by law.

5. The bonds shall bear interest at the rate or rates not to exceed the maximum interest rate permitted by law, payable annually or semiannually, or in part annually and in part semiannually, except the first interest payment may be for a period of less than six months, with the actual rate or rates and times of payment to be determined at the time or times of sale thereof.

6. The bonds may bear a variable or fixed interest rate, provided tha t such variable rate or fixed rate shall not exceed the maximum rate permitted by Section 53531 of the Act, or any other applicable provision of law limiting the maximum interest rate on the bonds.

7. Pursuant to Section 53351 of the Act, a special election i s hereby called for Community Facilities District No. 2022-1 on the proposition of incurring the bonded indebtedness. The proposition relative to incurring bonded indebtedness in the maximum aggregate principal amount of $6,000,000 shall be in the form of Proposition A set forth in Exhibit “A” hereto. In accordance with Sections 53351(h) and 53353.5 of the Act, the election shall be consolidated with the special election called on the proposition of levying a special tax within the District as described in the Resolution of Formation, which proposition shall be in the form of Proposition B set forth in Exhibit “A”, and on the proposition of establishing an 147
Item12.

appropriations limit for the District, which proposition shall be in the form of Proposition C set f orth in Exhibit “A”.

8. The date of the special election for Community Facilities District No. 2022-1 on the propositions of incurring the bonded indebtedness, authorizing the levy of the special tax and setting an appropriations limit shall be March 2, 2022, or such later date as is consented to by the City Clerk, or a Deputy City Clerk of the City (referred to herein as the “City Clerk”); provided that, if the election is to take place sooner than 90 days after March 2, 2022 , then the unanimous written conse nt of each qualified elector within the District to such election date must be obtained. The polls shall be open for said election immediately following the public hearing on March 2, 2022. The election shall be conducted by the City Clerk. Except as ot herwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Escondido insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of the Resolution of Formation, and this resolution and all ballots shall be received by and the City Clerk shall close the election by 6:00 p.m. on the election day; provided the election shall be closed at s uch earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act.

Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person, or by mail with return postage prepaid, to the qua lified electors within Community Facilities District No. 2022-1. It is hereby found that there are fewer than 12 registered voters within the territory of Community Facilities District No. 2022-1 and, pursuant to Section 53351(j) of the Act, the ballots f or the special election shall be distributed in person or by mail with return postage prepaid to the landowners of record within Community Facilities District No. 2022-1 as of the close of the March 2, 2022 hearing regarding the formation of Community Facilities District No. 2022-1. Each landowner shall have one vote for each acre or portion thereof that he, she or it owns within Community Facilities District No. 2022-1, as provided in Section 53326 of the Act. The sole landowner within Community Facilities District No. 2022- 148
Item12.

1 has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on March 2, 2022, which waiver is on file with the City Clerk.

149
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4854-1142-1184v3/022009-0050

ATTACHMENT A

BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2022-1

OF THE CITY OF ESCONDIDO (ECLIPSE/MOUNTAIN HOUSE)

SPECIAL TAX AND SPECIAL BOND ELECTION
March 2, 2022
PROPOSITION A: Shall Community Facilities District No. 2022-1 of the City of Escondido (Eclipse/Mountain House) (the “District”) incur an indebtedness and issue bonds in the maximum principal amount of $6,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses de scribed in Resolution No. 2022 -02 of the City Council of the City of Escondido?
YES______
NO_______
PROPOSITION B: Shall a special tax with a rate and method of apportionment as provided in Resolution No. 2022 -02 of the City Council of the City of Escondido be levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 2022-02, including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental Expenses? YES______
NO_______
PROPOSITION C: For each year commencing with Fiscal Year 2022-23, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities District No. 2022-1 be an amount equal to $6,000,000? YES______
NO_______
Resolution No. 2022-11
Exhibit "A"

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RESOLUTION NO. 2022-12

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ACTING IN ITS CAPACITY AS

THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2022-1 OF THE CITY OF ESCONDIDO
(ECLIPSE/MOUNTAIN HOUSE) CERTIFYING ELECTION

RESULTS

WHEREAS, the City Council of the City of Escondido called and duly held an election on March 2, 2022 within the boundaries of Community Facilities District No. 2022-1 of the C ity of Escondido (Eclipse/Mountain House) (“Community Facilities District No. 2022-1” or the “District”) pursuant to Resolution Nos. 2022-02 and 2022-08 for the purpose of presenting to the qualified electors within the District Propositions A, B and C, attached hereto as Exhibit “A”; and WHEREAS, there has been presented to this City Council a certificate of the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) canvassing the results of the election, a copy of which is attached hereto as Exhibit “B”;
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Escondido:

1. That the above recitations are true.

2. That propositions A, B and C presented to the qualified electors of the District on March 2, 2022 were approved by more than two -thirds of the votes cast at said election and Propositions A, B and C each has carried. The City Council, acting as the legislative body of the District, is hereby authorized to levy on the land within the District the special tax described in Proposition B for the purposes described therein and to take the necessary steps to levy the special tax authorized by Proposition B and to issu e bonds in an amount not to exceed $6,000,000 specified in Proposition A. 151
Item12.

3. That the City Clerk is hereby directed to record in the Assessor -County Clerk-Recorder’s office of the County of San Diego within fifteen days of the date hereof a notice of special tax lien with respect to the District which Bond Counsel to the District shall prepare in the form required by Streets and Highways Code Section 3114.5.

4. That this Resolution shall be effective upon its adoption. 152
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Resolution No. 2022-12
Exhibit “A”

Page 1 of 1 ends

EXHIBIT A

BALLOT PROPOSITIONS

COMMUNITY FACILITIES DISTRICT NO. 2022-1

OF THE CITY OF ESCONDIDO (ECLIPSE/MOUNTAIN HOUSE)

SPECIAL TAX AND SPECIAL BOND ELECTION

March 2, 2022

YES______
NO_______

PROPOSITION B: Shall a special tax with a rate and method of apportionment as provided in Resolution No. 2022-02 of the City Council of the City of Escondido be levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 2022-02, including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental Expenses?

YES______
NO_______

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Resolution No. 2022-12
Exhibit “B”

Page 1 of 1 ends

EXHIBIT B

CERTIFICATE OF CITY CLERK

AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Zack Beck, City Clerk of the City of Escondido, do hereby certify that I have examined the returns of the Special Tax and Bond Election for Community Facilities District No. 2022-1 (Eclipse/Mountain House) of the City of Escondido (the “City”). The election was he ld in the City Council Chambers at 201 North Broadway , Escondido, California, on March 2, 2022 . I caused to be delivered ballots to each qualified elector. ____ (__) ballots were returned.

I further certify that the results of said election and the numbe r of votes cast for and against Propositions A, B and C are as follows:

PROPOSITION A PROPOSITION B PROPOSITION C
YES: YES: YES:

NO: NO: NO:

TOTAL: TOTAL: TOTAL:

Dated this 2nd day of March, 2022.
________________________________
Zack Beck, City Clerk
City of Escondido
154
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RESOLUTION NO. 2022-14

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ACTING AS THE LEGISLATIVE
BODY OF THE COMMUNITY FACILITIES DISTRICT NO.
2020-1 OF THE CITY OF ESCONDIDO (SERVICES),

ANNEXING TERRITORY TO COMMUNITY FACILITIES
DISTRICT 2020 -1 OF THE CITY OF ESCONDIDO
(SERVICES)

WHEREAS, on April 8, 2020, the City Council (“City Council”) of the City of Escondido adopted Resolution No. 2020 -24 (the “Resolution of Intention”), declaring its intention to establish Community Facilities District 2020-1 of the City of Escondido (Services) (“Community Facilities District 2020-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, pursuant to Section 53339.3 of the Act, the Resolution of Intention included a description of the future annexation area of the District (the “Future Annexation Area”), wherein property owners may be annexed into the District only with the unanimous approval of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed into the District; and WHEREAS, the Resolution of Intention described (i) the servi ces that may be provided by the District; (ii) the levy of special taxes pursuant to the rate and method of apportionment of the special tax, as set forth in Exhibit “C” attached to the Resolution of Intention (the “Rate and Method”); and (iii) the Future Annexation Area; and
WHEREAS, on May 13, 2020, after a duly noticed public hearing, the City Council adopted Resolution No. 2020 -44 (the “Resolution of Formation”) establishing Community Facilities District No. 2020-1 and calling a special election therein to authorize (i) the levy of special taxes pursuant to the Rate 155
Item12.

and Method, and (ii) the establishment of an appropriations limit for Community Facilities District No. 2020-1; and
WHEREAS, pursuant to a Unanimous Approval executed by Robert H. Thorne on behalf of CWC Escondido 113 LLC, a Delaware limited liability company (“Owner 1”) and TTLC Cal West, LLC, a California limited liability company , (“Owner 2,” and, together with Owner 1, the “Owners” ), dated February 22, 2022, attached hereto as Exhibit “A” (the “Unanimous Approval”), Owner 1 and Owner 2 stated their intention to annex the territory described in Exhibit “ 1” to the Unanimous Approval to the District (the “Annexation Territory”) with no further hearings or procedures required with respect to such annexation to the District; and
WHEREAS, the Annexation Territory is within the Future Annexation Area of the District; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to proceed with the annexation of the Annexation Territory to the District; BE IT RESOLVED by the City Council of the City of Escondido:

1. That the above recitations are true.

2. That the City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District and the proposed annexation of the Annexation Territory to the District were valid and in conformity with the requirements of law, including the Act, and the annexation of the Annexation Territory to the District in accordance with the Una nimous Approval is hereby approved.

3. That the map showing the original boundaries of the District designated as “Boundary Map of Community Facilities District No. 2020 -1 (Services) City of Escondido, County of San Diego, State of California”, which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and 156
Item12.

Community Facilities Districts in the Assessor -County Clerk-Recorder’s office of the County of San Diego in Book No. 48 Page Nos. 79-80 on April 13, 2020, as Instrument No. 2020-7000088.

4. That the City Council hereby authorizes a map showing the Annexation Territory to be annexed to the District and be made subject to taxation in the form attached hereto as Exhibit “B” be recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor-County Clerk-Recorder’s office of the County of San Diego.

5. That the City Council hereby adopts the Rate and Method attached as Exhibit “C” to the Resolution of Intention as the applicable rate and method for the Annexation Territory. Except where funds are otherwise available, it is the intention of t he City Council to levy the proposed special taxes at the rates within the Annexation Territory set forth in the Rate and Method on all non -exempt property within the Annexation Territory sufficient to pay for (i) the Services (as defined in the Rate and Method), and (ii) Incidental Expenses (as defined in the Rate and Method). The District expects to incur, and in certain cases has already incurred, Incidental Expenses in connection with the annexation of the Annexation Territory to the District. The rate and method of apportionment of the special tax applicable to the Annexation Territory is described in detail in Exhibit “C” to the Resolution of Intention which is incorporated herein by this reference, and the City Council hereby finds that Exhibit “C” to the Resolution of Intention contains sufficient detail to allow each landowner within the Annexation Territory to estimate the maximum amount that may be levied against each parcel. The special tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the ownership of real property.

6. That upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all non- 157
Item12.

exempt real property in the Annexation Territory and this lien shall continue in force and effect until the levy of the special tax by the District ceases in accordance with the Rate and Method.

7. That consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within the Annexation Territory, if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agri cultural, timber or livestock products is contiguous to other land within the Annexation Territory and will be benefited by the Services proposed to be provided within Community Facilities District No. 2020-1 and the Annexation Territory.

8. It is hereby further determined that there is no ad valorem property tax currently being levied on property within the Annexation Territory for the exclusive purpose of paying for the same services as are proposed to be provided by Community Facilities District 2020-1.

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159
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Resolution No. 2022-14
Exhibit A

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Resolution No. 2022-14
Exhibit A

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161
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Resolution No. 2022-14
Exhibit A

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162
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Resolution No. 2022-14
Exhibit A

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163
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Resolution No. 2022-14
Exhibit A

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164
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Resolution No. 2022-14
Exhibit A

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Resolution No. 2022-14
Exhibit A

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1 OF 2
JANUARY 2022
CFD2020-1
SHEET
DATE
JOB NO.
437 WEST GRAND AVENUE
ESCONDIDO, CALIFORNIA 92025
TELEPHONE: (760)233-2630
FAX: (760)233-2631
SDFA

SPECIAL DISTRICT FINANCING
& ADMINISTRATION

OF THE CITY OF ESCONDIDO

COUNTY OF SAN DIEGO

STATE OF CALIFORNIA

BOUNDARY MAP OF
COMMUNITY FACILITIES DISTRICT NO. 2020-1
(SERVICES)
ANNEXATION ZONE 2020-6
1 LEGEND:

LOT NUMBER

COMMUNITY FACILITIES

DISTRICT BOUNDARY
(ZONE 2020-6)

FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF ESCONDIDO, THIS ______ DAY OF _________________, 20______.

BY: _____________________________________

CITY CLERK

CITY OF ESCONDIDO

STATE OF CALIFORNIA

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING THE BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2020-1 ZONE 2020-6 OF THE

CITY OF ESCONDIDO, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA,

WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF ESCONDIDO AT A REGULAR MEETING THEREOF, HELD ON THE _________ DAY OF _______________, 20______, BY ITS RESOLUTION NO._______________.

BY: _____________________________________

CITY CLERK

CITY OF ESCONDIDO

MAPS OF ASSESSMENTS AND COMMUNITY FACILITIES DISTRICTS IN

THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF SAN
DIEGO, CALIFORNIA.

BY: _____________________________________

DEPUTY RECORDER
COUNTY RECORDER, ERNST J. DRONENBURG, JR.

COUNTY OF SAN DIEGO

STATE OF CALIFORNIA
1 3
2 BROTHERTON RD

CENTRE CITY PKWY
Scale In Feet
2000 100100
Resolution No. 2022-14
Exhibit B

Page 1 of 2 ends

167
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SHEET
DATE
JOB NO.
437 WEST GRAND AVENUE
ESCONDIDO, CALIFORNIA 92025
TELEPHONE: (760)233-2630
FAX: (760)233-2631
SDFA

SPECIAL DISTRICT FINANCING
& ADMINISTRATION
Scale In Feet
8000 400400 2 OF 2
JANUARY 2022
CFD2020-1
1 LEGEND:

LOT NUMBER

COMMUNITY FACILITIES

DISTRICT BOUNDARY
(ZONE 2020-6)
4 5
7 22
6 8
9 15
10 11
12 16
13 14 17
18 20
23 24
25 26
27 28
29 30
31 32
33 34
38 39
40 37
41 42
43 36
35 19
21 NAP NOT A PART
NAP
NAP
44 HAMPTON
GLN

WOODLAND

HEIGHTS
GLN

KENSINGTON
GLN
NAP

MESA ROCK RD
NAP

OF THE CITY OF ESCONDIDO

COUNTY OF SAN DIEGO

STATE OF CALIFORNIA

BOUNDARY MAP OF
COMMUNITY FACILITIES DISTRICT NO. 2020-1
(SERVICES)
ANNEXATION ZONE 2020-6
Resolution No. 2022-14
Exhibit B

Page 2 of 2 ends

168
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C-1

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
COMMUNITY FACILITIES DISTRICT NO. 2020-1
(Services)

CITY OF ESCONDIDO
A Special Tax (as hereinafter defined) shall be levied on all Assessor’s Parcels within Community Facilities District No. 2020-1 (“CFD No. 2020-1”) of the City of Escondido (“City”) and collected each Fiscal Year commencing in Fiscal Year 2020-2021, in an amount determined by the City Council, through the application of this Rate and Method of Apportionment of Special Taxes as described below. All of the real property within the boundaries of CFD No. 2020-1, unless exempted by law or by the provisions hereof, shall be subject to the Special Tax for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre” or “Acreage” means the acreage of an Assessor’s Parcel as shown on an Assessor’s Parcel Map. If the acreage is not shown on an Assessor’s Parcel Map, the acreage shown on the applicable Final Map, parcel map, condominium plan, or other recorded County map shall be used. If the acreage information supplied by these alternative sources is not available, or in conflict, the acreage used shall be determined by the CFD Administrator or a designee. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means the following actual or reasonably estimated costs directly related to the formation, annexation and administration of CFD No. 2020-1, including but not limited to the following: (i) the costs of computing the Special Taxes and preparing and presenting to City Council the Special Tax collection schedules (whether by the City or designee thereof or both); (2) the costs of collecting the Special Taxes (whether by the County or otherwise); (3) the costs to the City, CFD No. 2020-1 or any designee thereof in responding to property owner and public inquiries regarding CFD No. 2020-1, including its Special Taxes; (4) the costs of the City, CFD No. 2020-1 or any designee related to an appeal of the Special Tax; (5) the costs of the City, CFD No. 2020-1 or any designee related to preparing required reporting obligations; (6) the City’s annual administration fees and third party expenses; (7) the costs of City staff time and reasonable overhead relating to CFD No. 2020-1; and (8) amounts estimated or advanced by the City or CFD No. 2020-1 for any other administrative purposes of CFD No. 2020-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Assessor” means the County Assessor.
“Assessor’s Parcel” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned Assessor’s parcel number located within the boundaries of CFD No. 2020-1.

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“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s parcel number.
“Building Permit” means the first legal document issued by the City giving official permission for the construction of a building on an Assessor’s Parcel. For purposes of this definition and application of the Special Tax, “Building Permit” may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the CFD Administrator.
“CFD Administrator” means the Finance Director or other official of the City responsible for determining the Special Tax Requirement, providing for the levy and collection of the Special Taxes and performing the other duties provided herein.
“CFD No. 2020-1” means Community Facilities District No. 2020-1 of the City of Escondido. “City” means the City of Escondido, California.
“City Council” means the City Council of the City, acting as the Legislative Body of CFD No. 2020-1, or its designee.
“County” means the County of San Diego, California.
“Density” means the maximum number of dwelling units permitted per acre, including streets within the development, excluding all ultimate circulation element street rights-of- way, adjustments for floodways as defined by the Federal Emergency Management Agency (FEMA) or the City, slope categories, and other environmental factors as designated in each land use category and/or open space/ conservation element. All as further defined within the City’s General Plan adopted May 2012 per Resolution 2012-52, as amended from time-to- time. Density shall be determined by the CFD Administrator prior to annexation. “Developed Property” means, for each Fiscal Year, all Taxable Property for which a Building Permit for new construction was issued prior to March 1st of the prior Fiscal Year. “Dwelling Unit” or “DU” means, as defined in the City of Escondido Municipal Code 32.102 and amended from time to time, each residential unit, without regard to the square footage of the Dwelling Unit, including but not limited to an individual single-family detached Dwelling Unit, small lot single-family Dwelling Unit, townhome, condominium, apartment, or other such residential dwelling unit, including each separate living area within a half-plex, duplex, triplex, fourplex, or other residential structure that comprises an independent facility capable of conveyance or rental separate from the primary Dwelling Unit(s). Dwelling Unit does not include an attached or detached accessory dwelling unit, as defined in the Section 33-8 of the Escondido Zoning Code, as amended from time-to-time.
“Exempt Property” means all Assessor’s Parcels designated as being exempt from Special Taxes pursuant to Section D.
“Fiscal Year” means the period starting July 1 and ending on the following June 30. “Index” means the Consumer Price Index as published by the United State Department of Labor, titled “CPI for All Urban Consumers.” Further defined with the Series Title, “All items Resolution No. 2022-14
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C-3
in San Diego – Carlsbad, CA, all urban consumers, not seasonally adjusted”. If this Index is no longer available, an alternative comparable Index will be chosen by the CFD Administrator. “Land Use Category” means any of the categories listed in Section C, Table 1 which resulted from the initial analysis of the impacts from new Dwelling Units for providing Services and Appendix A, as to the initial property within CFD No. 2020-1, which may be updated from time to time as annexations occur.
“Maximum Special Tax” means for each Assessor’s Parcel and each Fiscal Year, the Maximum Special Tax, determined in accordance with Section C, below, that may be levied on such Assessor’s Parcel in such Fiscal Year.
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit was issued for any type of non-residential use. “Proportionately” means for Taxable Property, that the ratio of actual Special Tax levy to the Maximum Special Tax rate is equal for all applicable Assessor’s Parcels within the Zone. “Rate and Method of Apportionment” means the “Rate and Method of Appointment of Special Taxes for Community Facilities District No. 2020-1 of the City of Escondido.” “Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Dwelling Units. “Services” means services authorized to be funded by CFD No. 2020-1. “Special Tax(es)” means the Special Tax authorized to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within the boundaries of CFD No. 2020-1 in accordance with this Rate and Method of Apportionment.
“Special Tax Requirement” means, subject to the Maximum Special Tax, that amount to be collected in any Fiscal Year to pay for the Services as otherwise required to meet the needs of CFD No. 2020-1. The Special Tax Requirement include the costs for (1) the Services, and (2) Administrative Expenses, less (3) a credit for funds available to reduce the Special Tax levy, if any, as determined by the CFD Administrator.
“State” means the State of California.
“Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD No. 2020-1 which are not exempt from the Special Tax pursuant to law or Section D below. “Undeveloped Property” means, for each Fiscal Year, all Assessor’s Parcels, or portions thereof, of Taxable Property not classified as Developed Property. “Zone” means a mutually exclusive geographic area or areas, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment. The initial Zone of CFD No. 2020-1 is identified as Zone 2020-1. Additional Zones may be created when property is annexed into CFD No. 2020-1.

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B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, beginning with Fiscal Year 2020-21, all property within CFD No. 2020-1 shall be classified as Taxable Property or Exempt Property. Each Assessor Parcel of Taxable Property shall be further classified as Developed Property or Undeveloped Property and shall be subject to Special Taxes in accordance with this Rate and Method of Apportionment determined pursuant to Section C below. Assessor’s Parcels of Taxable Developed Property shall further be classified into Land Use Categories.

C. MAXIMUM SPECIAL TAX
An Assessor’s Parcel may contain more than one Land Use Category. The Maximum Special Tax which may be levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax that can be imposed based on each Land Use Category applicable to such Assessor’s Parcel.

1. Developed Property
a. Maximum Special Tax
Each Fiscal Year, each Assessor’s Parcel of Developed Property shall be subject to the Maximum Special Tax. The Maximum Special Tax applicable for Developed Taxable Property within Zone 2020-1 was determined through the application of Table 1, and is as shown in Appendix A. Appendix A will be updated at the time of each annexation to reflect the Land Use Categories and applicable Maximum Special Taxes for each annexed Zone or by areas within each annexed Zone.

The Maximum Special Tax for Fiscal Year 2020-2021 applicable to an Assessor’s Parcel of Developed Property shall be determined using Table 1 below.

TABLE 1
Maximum Special Tax Rates
for Developed Residential Property per Dwelling Unit*
Fiscal Year 2020-2021
Land Use
Category Density Unit
Special Tax
Per Unit
1 Less than 5.5 DU/Acre DU $536.00
2 5.5 to less than 18 DU/Acre DU $743.00
3 18.0 to less than 30 DU/Acre DU $725.00
4 30 DU/Acre or Greater DU $783.00
* The analysis performed to establish the Special Tax per DU shown above only considered the impacts from property within the current City boundary.

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b. Escalation
Each July 1 st, commencing July 1, 2021, the Maximum Special Taxes shall increase annually by the greater of the annual percentage change in the Index or two percent (2%) from the amount established in the prior Fiscal Year.

2. Undeveloped Property
No Special Tax shall be levied on Undeveloped Property.

D. EXEMPT PROPERTY
The CFD Administrator shall classify as Exempt Property within the boundaries of CFD No. 2020-1: (1) Any Assessor’s Parcel that is owned or irrevocably dedicated to the State of California, Federal or other local governments, including school districts, (2) Assessor’s Parcels which are owned by or irrevocably dedicated to a homeowners association, or (3) Assessor’s Parcels with other types of public uses determined by the CFD Administrator.

E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2020-2021 and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for such Fiscal Year and shall levy the Special Tax Proportionately on each Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.

F. PREPAYMENT OF SPECIAL TAX
No prepayments of the Special Tax are permitted.

G. APPEALS AND INTERPRETATIONS
Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the CFD Administrator. The written notice of appeal must be filed within the same Fiscal Year as having paid the first installment of the Special Tax that is disputed and the property owner must be current and remain current in the payment of all Special Tax levied on or before the payment date.

The CFD Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the CFD Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, an adjustment shall be made to the Annual Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s) and a refund, as described, shall be made representing the amount of the adjustment for only the most recent Fiscal Year. The CFD Administrator shall determine if funds are available to provide such refund or, if funds are not available in the sole discretion of the CFD Administrator to provide a cash refund, a credit to the levy of Special Tax in one or more subsequent Fiscal Years shall be made in the same amount. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal actions by such property owner.

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The CFD Administrator may interpret this Rate and Method of Apportionment for purposes of clarifying ambiguity and make determinations relative to the amount of Administrative Expenses.

H. MANNER OF COLLECTION
The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2020-1 may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

I. TERM OF THE SPECIAL TAX
For each Fiscal Year, the Special Tax shall be levied in perpetuity as long as the Services are being provided.

J. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed into CFD No. 2020-1 from time to time. For Land Use Categories not included in the initial boundaries of CFD No. 2020-1, a study and report describing the Services to be provided to such properties and the estimated cost of such Services shall be provided to the City Council as the legislative body of the CFD No. 2020-1 in accordance with Section 53321.5 of the Mello-Roos Act. Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et. seq. will be assigned an appropriate Maximum Special Tax rate for the Zone or areas within the Zone by Land Use Category as provided herein or as defined and detailed when annexed and included in Appendix A.

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APPENDIX A
APN(s) Address Land Use Category Units
Annual Special
Tax Per Unit*
236-390-02-00, 236-
390-03-00, 236-390-53-
00, 236-390-52-00, and
236-390-54-00
2200, 2208, 2210, 2222 & 2224
S. Escondido Boulevard,
Escondido, CA 92025
(2) 5.5 - 18
DU/Acre 62 $757.86
231-040-17-00
2819 Wanek Road, Escondido,
CA 92027
(1) Less than 5.5
DU/Acre 2 $546.72
240-210-18-00
2639 Canyon Crest Drive,
Escondido, CA 92027
(1) Less than 5.5
DU/Acre 1 $546.72
* For FY 2021/22 in accordance with the Rate and Method of Apportionment for CFD 2020-1 (Services)
City Council action has been taken on July 21, 2021 by Resolution 2021-77 to adjust the levy by the minimum 2% as shown in the table below:

Zone 2020-5 Annexation Table Detailing Special Tax Rates Applicable for FY 2021/22 Resolution No. 2022-14
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EXHIBIT D

LEGAL DESCRIPTION
APN and ownership information for TTLC CALWEST,LLC, a California limited liability company (Owner 1):
187-090-38-00
187-090-39-00
187-090-40-00
187-090-41-00
187-090-42-00
187-090-44-00
187-090-45-00
187-090-46-00
187-090-47-00
187-090-48-00
187-090-49-00
187-090-50-00
187-090-51-00
187-090-53-00
187-090-54-00
187-090-56-00
187-090-57-00
187-090-58-00
187-090-59-00
187-091-13-00
187-091-14-00
187-091-15-00
187-091-16-00
187-091-17-00
187-091-18-00
187-091-19-00
187-091-20-00
187-091-22-00
187-091-23-00
187-091-24-00
187-091-25-00
187-091-26-00
187-091-27-00
187-091-28-00
187-091-29-00
187-091-30-00
187-091-31-00
187-091-32-00
187-091-33-00
187-091-34-00
187-091-35-00
TOTAL ACREAGE: 463.23
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APN and ownership information for CWC Escondido 113 LLC, a Delaware limited liability company (Owner 2):

238-130-11-00
238-130-26-00
238-130-27-00

TOTAL ACREAGE: 3.379 acres.

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ORDINANCE NO. 2022-03

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA , ACTING IN ITS CAPACITY AS

THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2022-1 OF THE CITY OF ESCONDIDO
(ECLIPSE/MOUNTAIN HOUSE) AUTHORIZING THE LEVY

OF SPECIAL TAXES
WHEREAS, on January 26, 2022, the City Council (the “City Council”) of the City of Escondido (the “City”) adopted Resolution No. 2022-02 declaring its intention to form Community Facilities District No. 2022-1 of the City of Escondido (Eclipse/Mountain House) (the “District”) and to designate certain parcels as territory proposed for future annexation into the District (the “Future Annexation Area”), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”), and its Resolution No. 2022-08 declaring its intention to incur bonded indebtedness for the District; and WHEREAS, on March 2, 2022 , after providing all notice required by the Act, the City Council conducted a noticed public hearing required by the Act relative to the proposed formation of the District and the Future Annexation Area, the proposed levy of a special tax therein to finance certain public facilities described in Resolution No. 2022-10 (the “Resolution of Formation”) and to secure the payment of any bonded indebtedness of the District, and the proposed issuance of up to $ 6,000,000 of bonded indebtedness as described in Resolution No. 202 2-11 (the “Resolution of Necessity to Incur Indebtedness”); and
WHEREAS, at the March 2, 2022 public hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and the Future Annexation Area, and the proposed levy of the special tax to finance the facilities described in Resolution No. 2022-02 and to secure the payment of up to $6,000,000 of bonded indebtedness of the District as described in Resolution No. 2022-08 (the “Bonds”) were heard and a full and fair hearing was held; and
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WHEREAS, on March 2, 2022 , the City Council adopted the Resolution of Formation and the Resolution of Necessity to Incur Indebtedness which formed the District and the Future Annexation Area and called a special election within the District on March 2, 2022 on three propositions relating to the levy of a special tax within the District, the issuance of the Bonds and the establishment of an appropriations limit within the District; and
WHEREAS, on March 2, 2022, a special election was held within the District at which the qualified electors approved by more than a two-thirds vote Propositions A, B and C authorizing the levy of a special tax within the District for the purposes described in Resolution No. 2022-02, the issuance of the Bonds as described in Resolution No. 2022-08 and establishing an appropriations limit for the District; and NOW, THEREFORE, BE IT ORDAINED, by the City Council of the City of Escondido that:

1. The above recitations are true.

2. By the passage of this Ordinance, the City Cou ncil authorizes and levies special taxes within the District pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of apportionment set forth in Attachment C to Resolution No. 2022-02, which is incorporated by reference herein (the “Rate and Method”). The special taxes are hereby levied commencing in the fiscal year specified in the Rate and Method and in each fiscal year thereafter until payment in full of the Bonds (including any bonds issued to refund the Bonds), payment of all costs of the public facilities authorized to be financed by the District, and payment of all incidental expenses to be incurred in financing such public facilities and forming and administering the District.

3. Each of the Mayor, the City Manager, or their written designees (each, an “Authorized Officer”), acting alone, is hereby authorized and directed each fiscal year to determine the specific special tax rates and amounts to be levied in such fiscal year on each parcel of real prope rty within the District, 179
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in the manner and as provided in the Rate and Method. The special tax rate levied on a parcel pursuant to the Rate and Method shall not exceed the maximum rate set forth in the Rate and Method for such parcel, but the special tax may be levied at a lower rate. Each Authorized Officer is hereby authorized and directed to provide all necessary information to the Treasurer -Tax Collector of the County of San Diego and to otherwise take all actions necessary in order to effect proper b illing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amounts and at times necessary to satisfy the financial obligations of the District in each fiscal year, and with respect to Special Tax, until the Bonds are paid in full, the facilities have been paid for, and provision has been made for payment of all of the administrative costs of the District.

4. Properties or entities of the state, federal or other local governments shall be exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and Section F of the Rate and Method. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in the Resolution of Formation or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment or an existing special tax as provided in Section 53334 of the Act.

5. All of the collections of the special tax shall be used as provided for in the Act, the Rate and Method and the Resolution of Formation.

6. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same proc edure, sale and lien priority in case of delinquency as is provided for ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as such procedure may be modified by law or by this City Council from time to time.
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7. As a cumulative remedy, if any amount levied as a special tax for payment of the interest or principal of the Bonds (including any bonds issued to refund the Bonds), together with any penalties and other charges accruing under this Ordinance, are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on the Bonds (including any bonds issued to refund the Bonds), order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax, as authorized by the Act.

8. The Mayor of the City shall sign this Ordinance and the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) shall attest to the Mayor’s signature and then cause the same to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated in the City of Escondido.

9. The specific authorization for adoption of this Ordinance is pursuant to the provisions of Section 53340 of the Act.

10. The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the Treasurer-Tax Collector of the County of San Diego, and to perform all other acts which are required by the Act, this Ordinance or by law in order to accomplish the purpose of this Ordinance.

11. A full reading of this Ordinance is dispensed with prior to its final passage, a written or printed copy having been available to the City Council and the public a day prior to its final passage.

12. This Ordinance shall take effect thirty days after its final passage.

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STAFF REPORT

March 2, 2022
File Number 0600-15

SUBJECT

DEVELOPMENT AGREEMENT AND MAJOR PLOT PLAN FOR THE VIA PORTOFINO APARTMENT PROJECT (ADM 18-0225 AND PL 22-0021) -

DEPARTMENT
Community Development Department, Planning Division

RECOMMENDATION
Request the City Council (1) adopt Ordinance No. 2022-04, approving a Development Agreement for the Via Portofino apartment project and (2) Approve Resolution No. 2022-31, approving a Major Plot Plan for the Via Portofino apartment project.

Staff Recommendation: Approval (Community Development Department: Adam Finestone) Presenter: Adam Finestone

BACKGROUND

Portofino Holdings, LLC (“Applicant”), submitted an application for a Plot Plan for the development of two, two-story buildings (up to approx. 26 feet in height) to accommodate a total of 15 apartment units within the Southern Entry District of the SCCSP (“Project”). The design includes a mix of one-bedroom and two- bedroom units ranging in size from 597 square feet to 856 square feet. Twenty-nine parking spaces are proposed, which includes a combination of carports and uncovered spaces. The Project would result in a density of 30 dwelling units per acre. The applicant is seeking a 23% reduction in the onsite open space requirement and has requested a development agreement to allow for the payment of a fee in-lieu of the provision of the remaining open space.

A complete Project description and analysis of the Project, including its conformance with the General Plan, South Centre City Specific Plan, and Climate Action Plan, can be found in the January 25, 2022, Planning Commission staff report which is included with this report as Attachment “1”.

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FISCAL ANALYSIS

As part of the overall decision-making process for a development project, it is important to evaluate the contributions and demands that development will place upon a public agency’s general fund and the City or County’s ability to provide ongoing public services. To avoid the need for a City or County to subsidize new development, cities and counties can establish or require special funding mechanisms to ensure that new development pays for itself.

In 2019, the City of Escondido hired a financial consultant who conducted a Fiscal Impact Analysis (“FIA”) and determined that future ongoing revenue received as a result of new residential units throughout the City is less than the cost to provide municipal services, including police, fire and infrastructure maintenance, to those new units. In January 2020, the results of the FIA were presented to the City Council. On April 8, 2020, a Resolution was passed declaring the City’s intent to form a Community Facilities District (collectively referred to herein as the “CFD”) to offset the cost of governmental services associated with new development, as identified in the FIA.

CFD No. 2020-1, Citywide Services, was formed by the City Council on May 13, 2020, as one mechanism for offsetting additional public services re quired by a development project. The special tax that may be assessed on properties as a result of the development of new residential units is based upon the FIA that was prepared to support the creation of CFD No. 2020-01. Developers to whom these residential project entitlements are assigned are responsible for the establishment of a lawful funding mechanism to provide a source of funds for the on -going municipal services required for the project. The benefit of voluntarily entering into the CFD as the ch osen funding mechanism is that the process is significantly streamlined, which saves staff time and costs to Developers.

Based on the Resolution adopting CFD No. 2020 -1, the Project’s density (>18 du/ac) would require assessment of a special tax of $739.50 per unit, if the developer opted to utilize this mechanism to offset the ongoing costs of providing public services. Based on a 15 -unit development, the current estimated annual amount for ongoing services is $11,092.50, subject to annual adjustments.

Conditions have been included as Exhibit “D” to Resolution No. 2022-31 that require the Project to fund the ongoing costs of municipal services, in the amount determined by the City, through voluntarily annexing into the Citywide Services CFD or establishment of another lawful funding mechanism. All costs for forming and implementing an alternative lawful funding mechanism, including costs for consultants, elections, and any legal challenge, are expected to be at the Applicant’s sole expense. If the Applica nt chooses to pursue an alternative funding source rather than annexing into CFD No. 2020 -01, the City needs to determine and ensure that the Project pays for any additional fiscal burdens placed upon the 183
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City’s operational budget as a result of the future development. The voluntary annexation of the Project into the CFD or establishment of another lawful funding mechanism to fund public services (in addition to payment of development impact fees to pay for public facilities) is necessary to avoid or lessen the likelihood of future impacts related to the provision of public services, as well as to maintain General Plan conformance to enable Project approval.

The Applicant has suggested that the Project should not be subject to conditions requiring voluntar y annexation into CFD No. 2020 -01 or establishment of another lawful funding mechanism, because the application was submitted and in -process prior to City Council adoption of the requirement to fund ongoing public services. City staff’s recommendation to a pprove the P roject is based, in part, on the inclusion of these conditions, and staff does not recommend that the conditions be removed.

NO NET LOSS
The purpose of Government Code se ction 65863 (“No Net Loss Law”) is to ensure development opportunities remain available throughout the planning period to accommodate a jurisdiction’s regional housing need allocation (“RHNA”), especially for lower- and moderate- income households. Jurisdictions also cannot approve new housing at significantly lower densities or at different income categories than was projected in the Housing Element without making specific findings and identifying other sites that could accommodate these units and affordability levels “lost” as a result of the approval.

Because the Sixth Cycle Housing Element has not been certified by the California Department of Housing and Community Development, compliance with No Net Loss provisions are reviewed in relationship to the Fifth Cycle Housing Element. The City’s Fifth RHNA Cycle consists of 4,175 total units, including 733 moderate-income units and 1,873 lower -income units. The Housing Element Residential Site Inventory identified a total capacity for 4,561 units to accommodate extremely/very low, low, moderate, and above moderate-income affordability levels. Since 2012, the City has produced 1,866 total housing units during the course of the Fifth RHNA Cycle. As of January 1, 2021, the total remaining RHNA obligation is 2,309 total units, including 655 moderate-income units and 1,634 lower-income units.

Government Code section 65583(a)(3) requires local governments to prepare an inventory of land suitable for residential development, including vacant sites and sites having the potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to these sites. The City performed this analysis in March 2021, and identified suitable sites that can be developed for housing. Overall, vacant and underutilized properties in the South Centre City Specific Plan a rea are projected to accommodate 1,038 new moderate-income and lower-income units. The Project would result in no net loss because it will be developed at the maximum density permitted for the property as identified in the 184
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South Centre City Specific Plan, and total housing yield capacity exceeds the remaining RHNA obligations in the lower-income category.

ENVIRONMENTAL REVIEW
California Environmental Quality Act (“CEQA”) Guidelines list classes of projects that have been determined not to have a significant effect on the environment and as a result are exempt from further environmental review under CEQA. The Project qualifies for an exemption under CEQA Guidelines section 15332 (In -Fill Development Projects). A CEQA Notice of Exemption will be fi led for the Project upon approval by City Council. The Notice of Exemption demonstrates that the Project qualifies for the exemption and will not have a significant effect on the environment.

PREVIOUS ACTION
On January 25, 2022, the Escondido Planning Commission recommended City Council approval the Project (6-0; one commissioner absent).

PUBLIC INPUT
The Project was noticed consistent with the requirements of the Escondido Zoning Code and State law.

One member of the public spok e in opposition of the Project at the January 25, 2022, Planning Commission meeting. The concerns raised by the commenter were primarily related to potential impacts to parking in the neighborhood to the east of the Project site. Staff has not received an y further correspondence from the public regarding the Project as of the writing of this report.

RESOLUTIONS
a. Resolution No. 2022-31
b. Resolution No. 2022-31 Exhibits “A” through “D”

ORDINANCES
a. Ordinance No. 2022-04
b. Ordinance No. 2022-04 Exhibit “A”

ATTACHMENTS

a. Attachment “1” - January 25, 2022, Planning Commission Staff Report b. Attachment “2” -Zoning Map and Aerial Photograph
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Agenda Item No.: G.1

Date: January 25, 2022
PROJECT NUMBER / NAME: ADM18-0225 “Via Portofino”
REQUEST: A Major Plot Plan for the construction of two, two-story multi- family residential buildings consisting of 15 apartment units. The project includes seven o ne-bedroom units and eight two- bedroom units. The project also includes a request for a Devel opment Agreement for a reduction in the open space requirement.

LOCATION: 2690 S. Escondido Blvd
APN / APNS: 238-152-16-00
GENERAL PLAN / ZONING: SPA-15/ South
Centre City Specific Plan (Southern Entry
District and Mixed Use Overlay)
APPLICANT: Portofino Holdings I, LLC
PRIMARY REPRESENTATIVE:

Frank Giordano, Jr.

DISCRETIONARY ACTIONS REQUESTED: Plot Plan and Development Agreement PREVIOUS ACTIONS: None
PROJECT PLANNER: Darren Parker, Associate Planner, [email protected] CEQA RECOMMENDATION: Exemption – Class 32 CEQA Guidelines section 15332 STAFF RECOMMENDATION: Recommend approval by the City Council, as conditioned REQUESTED ACTION: Approve Planning Commission Resolution N0 2022-01 CITY COUNCIL HEARING REQUIRED: ☒ YES ☐ NO
REPORT APPROVALS: ☒ Adam Finestone, Interim Director of C ommunity Development
Attachment "1"
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Project Name: Via Portofino
Planning Commission Meeting
Date: January 25, 2022

A. BACKGROUND:

South Centre City is a dynamic linear corridor offering retail, professional services and l offices, employment opportunities, and a range of housing. The proposed project is on the east side of South Escondido Boulevard, west of Cranston Drive, and approxim ately one quarter mile south of West Citracado Parkway. The project site is surrounded by a commercial retail site to the north, and a vacant City owned parcel that houses a sewage pump statio n to the south (refer to Attachment 1). The project site was previously improved, but currently consists of a 0.52 acre vacant (0.52-acres), and is located in the Southern Entry District of the South Centre City Specific Plan (“SCCSP”). The property is relatively flat with no topography .

B. SUMMARY OF REQUEST:

Portofino Holdings, LLC (“Applicant”) submitted an application for a Plot Plan for the development of two, two-story buildings (up to approx. 26 feet in height) t o accommodate 15 apartment units within the Southern Entry District of the SCCSP (see Attachment 1). The project proposal results in a density of 30 dwelling units per acre. The design includes a mix of one-bedroom and two- bedroom units ranging in size from 597 SF to 856 SF. Twenty-nin e (29) parking spaces are proposed, which includes a combination of carports and uncovered spaces. Project plans are attached to draft Planning Commission Resolution No. 2022-01 as Exhibit “B,” which itself is included with this staff report as Attachment 3. A Development Agreement, attached to draft Planning Commission Resolution No. 2022-01 as Exhibit “E,” has been requested because the applicant is seeking a 50% reduction in the overall open space requirement.

C. SUPPLEMENTAL DETAILS OF REQUEST:

1. Property Size:

0.52 acres on one vacant parcel

2. Number of Units:

15 apartment units

3. Unit Size/Mix:

Seven one-bedroom units and eight two-bedroom units
ranging in size from 597 SF to 856 SF

4. Density:

30 dwelling units per acre

5. Building Height:

2 stories, up to approximately 26’ in height. The
SCCSP (Southern Entry District, Mixed use Overlay)
allows structures up to 3 stories and 45’ in height.

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Project Name: Via Portofino
Planning Commission Meeting
Date: January 25, 2022

6. Building Size:

7. Vehicle Parking:

10,664 SF (gross area) combined Building 1 and 2
Building 1 Building 2
Total area 6,172 SF Total area 4,458 SF

Required Proposed
29 total spaces 29 spaces
(includes 25 resident &
4 guest spaces)

8. Bicycle Parking:

8 spaces 8 Spaces

9. Setbacks

a) Front Yard

BTL-Min 10 BTL-10’
b) Rear Yard

15’ 62’
c) Side Yard

5’ 5’

10. Open Space /
Landscaping:

300 square feet of usable open space per unit (4,500square feet total) required. 3,479 square feet provided; (Development Agreement requested for 23% reduction in requirement)

11. Trees:

Street trees shall be installed along the frontage of S. Escondido Blvd and Cranston Drive.

12. Signage:

All signs subject to conformance with the SCCSP and Article 66 of the Escondido Zoning Code.

13. Trash:

Trash enclosure provided onsite. Trash collection service would be provided by Escondido Disposal.

14. Lighting:

Per Escondido Zoning Code (Article 35) and CA Building Code

15. Heating & Ventilation:

Heating, ventilation, and air conditioning (HVAC) units would b e installed on the roof in clusters. All HVAC equipment would be installed on mechanical pads with visual screening and any necessary acoustical enclosures.

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Project Name: Via Portofino
Planning Commission Meeting
Date: January 25, 2022

D. PROJECT ANALYSIS:

1. General Plan Conformance:

The General Plan land use designation for the subject property is SPA 15 (Specific Plan Area #15). The zoning classification is S-P (Specific Plan), and is implemented through the SCCSP.

The SCCSP provides land use and development standards, including regulations related to residential development. The requirements for the proposed development are outlined in the Southern Entry District of the S CCSP, however, the SCCSP has p rovisions to reduce certain development requirements through a Development Agreement subject to review and approval by the Planning Commission and City Council. Approval of this requ est will allow the developer to fully utilize the site for density purposes.

2. Specific Plan Conformance:

The proposed project would be consistent with the goals and obj ectives of the Southern Entry District of the SCCSP, which encourages opportunities for resid ential development and diversity of land uses based on smart growth principles. The land use concept for the Southern Entry District accommodates a wide range of housing types for those w ho do not want or need a traditional detached single-family home with a yard. The Southe rn Entry District offers flexibility to allow higher-density housing options. The Project would incr ease the population along the corridor and continue to improve the overall economics of the area.

3. Climate Action Plan Consistency:

The City’s ability to grow its population and economy while mee ting reduction targets for greenhouse gas (“GHG”) emissions will require broad-based community participation. The Climate Action Plan (“CAP”) is intended to achieve reductions from all sources and sectors, existing and new. This is emphasized by the fact that the City’ s GHG reduction targets are a reduction below baseline GHG emissions. Therefore, GHG emissions in the City need to be reduced below existing levels, while additional GHG emissions are generated by growth through 2035. As such, new development can contribute its fair share o f GHG reductions by complying with CAP strategies, goals, and actions that were determined to be applicable through the Checklist development process outlined in the CAP, or through a self-developed program.

For land use development requests, when a proposed project is compared with an adopted plan, such as the CAP, the analysis generally examines the existing physical conditions at the time the notice of preparation is published, or if no notice of preparation is published, at the time environmental analysis is commenced. The City updated its 2013 Climate Action Plan (“2013 CAP”) on March 10, 2021, through City Council Resolution No. 2021-37 (“2021 CAP”). The adoption of the 2021 CAP was subsequent to the date the Project application was deemed “complete” and shall not constitute a valid basis to disapprove or conditionally approve the Project.

Rather, the 2013 CAP is applicable for review and consideration of the Project. The 2013 CAP

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Project Name: Via Portofino
Planning Commission Meeting
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established a screening threshold of 2,500 metric tons carbon dioxide equivalent (“MTCO2e”) per year for new development projects in order to determine if a pr oject would need to demonstrate consistency with the CAP through the Consistency Checklist and/ or a self-developed program The Project emits fewer than 2,500 MTCO2e, and is consistent wi th the land use assumptions utilized to create business-as-usual estimates for future year analysis. Therefore, the Project is consistent with the 2013 CAP.

4. Site Design:

a) Lot Design, Access and Parking

The Applicant proposes to develop the vacant 0.52-acre site into two, two-story multi- family residential buildings consisting of 15 apartment units. Proposed access for the site will be provided from Cranston Drive and Escondido Blvd. The site would include an underground storm water system located towards the southern part of the lot.

Decorative perimeter walls are proposed along the north, south and east boundaries of the lot, along with new landscaping.

Twenty-nine parking spaces are required for the project site, which includes 25 resident spaces and four guest spaces. Pursuant to section 5.3. 5.2 of the SCCSP, which requires that at least one parking space for each residen tial unit be covered or enclosed, 15 spaces will be under carports. Project plans are attached to this Staff Report as Exhibit “B” of Attachment 3.

b) Open Space and Landscaping:

A minimum of 300 square feet of open space is required per unit in accordance with the SCCSP, which equates to 4,500 square feet of open space required. The Project includes a combination of private and common open space areas totaling 3,479 square feet of open space, which is 1,021 square feet, or 23%, less than the required amount.

Active open space areas include outdoor seating area, landscapi n g a n d o v e r h e a d trellis. The Project also includes private, ground-floor patios for select units and private balconies/decks on upper stories. The S. Escondido Blvd, and Cr anston Drive street frontage will include a combination of shrubs, groundcover, and street trees.

To accommodate the Project’s proposed site design and density, the Applicant is requesting a 23% reduction in open space from 300 square feet per unit to 231 square feet per unit. The SCCSP (Section 5.3.12.3) allows for a reduct ion in required open space (up to 50%) in exchange for alternative open space benefiting the public, subject to approval of a Development Agreement. In order to satisfy the SCCSP open space reduction requirement, the Applicant would be required to pay an in-lieu fee of $12.50 per square foot reduction of open space for the total amount of space deficiency. The

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Project Name: Via Portofino
Planning Commission Meeting
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proposed reduction of 1,021 square feet of open space amounts to an in-lieu fee of $12,762.50. With the payment of in-lieu fees and approval of the Development Agreement, the project meets the open space provisions.

5. Building Design:

The Project consists of two, two-story structures that include, one- and two-bedroom units. Unit sizes range from 597 square feet for the one bedroom units to 856 square feet for the two- bedroom units. Each unit has its own individual access. Carports are proposed for each unit. The buildings are approximately 26 feet in height to the top of roof parapets. The Project has a modern style of architecture with varying wall planes and rooflines, B ora tile roofs (COLOR?), white and prairie grass tone exterior and trim colors, stone veneer along the base and wooden window elements, fabric window awnings and arched entryways with tile accents.

E. FISCAL ANALYSIS:

As part of the overall decision-making process for a development project, it is important to evaluate the contributions and demands that development will pl ace upon a public agency’s general fund and the City or County’s ability to provide ongoing public services. To avoid the need for a City or County to subsidize new development, cities and c ounties can establish or require special funding mechanisms to ensure that new development pays for itself.

In 2019, the City of Escondido hired a financial consultant who conducted a Fiscal Impact Analysis (“FIA”) and determined that future ongoing revenue received as a result of new residential units throughout the City is less than the cost to provide municipal services, including police, fire and infrastructure maintenance, to those new units. In January 2020 , the results of the FIA were presented to the City Council. On April 8, 2020, a Resolution w as passed declaring the City’s intent to form a Community Facilities District (collectively referred to herein as the “CFD”) to offset the cost of governmental services associated with new development, as identified in the FIA.

CFD No. 2020-1, Citywide Services, was formed by the City Counc il on May 13, 2020, as one mechanism for offsetting additional public services required by a development project. The special tax that may be assessed on properties as a result of the development of new residential units is based upon the FIA that was prepared to support the creation of CFD No. 2020-01. Developers to whom these residential project entitlements are assigned are responsible for the establishment of a lawful funding mechanism to provide a source of funds for the on-going municipal services required for the project. The benefit of voluntarily entering i nto the CFD as the chosen funding mechanism is that the process is significantly streamlined, whi ch saves staff time and costs to Developers.

Based on the Resolution adopting CFD No. 2020-1, the project’s density (>18 du/ac) would require assessment of a special tax of $739.50 per unit, if the developer opted to utilize this mechanism to offset the ongoing costs of providing public servi ces. Based on a 15-unit

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Project Name: Via Portofino
Planning Commission Meeting
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development, the current estimated annual amount for ongoing services is $11,092.50, subject to annual adjustments.

Conditions have been included with Exhibit “D” to Attachment 3 that require the Project to fund the ongoing costs of municipal services, in the amount determined by the City, through voluntarily annexing into the Citywide Services CFD or establishment of another lawful funding mechanism.

All costs for forming and implementing an alternative lawful fu nding mechanism, including costs for consultants, elections, and any legal challenge, are expected to be at the Applicant’s sole expense. If the Applicant chooses to pursue an alternative funding source rather than annexing into CFD No. 2020-01, the City needs to determine and ensure th at the Project pays for any additional fiscal burdens placed upon the City’s operational budget as a result of the future development. The voluntary annexation of the project into the CFD or establishment of another lawful funding mechanism to fund public services, (in addition to payment of development impact fees to pay for public facilities) is necessary to avoid or les sen the likelihood of future impacts related to the provision of public services, as well as to maintain General Plan conformance to enable Project approval.

The Applicant has suggested that the Project should not be subj ect to conditions requiring voluntary annexation into CFD No. 2020-01 or establishment of a nother lawful funding mechanism, because the application was submitted and in-process prior to City Council adoption of the requirement to fund ongoing public services. This request from relief of this requirement must be considered by the City Council, and as such, the information above is provided for informational purposes only. City staff’s recommendation to approve the project is based, in part, on the inclusion of these condition, and staff does not recommend that the conditions be removed.

F. ENVIRONMENTAL STATUS:

California Environmental Quality Act (“CEQA”) Guidelines list c lasses of projects that have been determined not to have a significant effect on the environment and as a result are exempt from further environmental review under CEQA. The Project qualifies for an exemption under CEQA Guidelines section 15332 (In-Fill Development Projects). The CE QA Notice of Exemption prepared for the Project is attached to this staff report as At tachment 2 and incorporated herein by this reference. The Notice of Exemption demonstrates that th e Project qualifies for the exemption and will not have a significant effect on the environment.

F. PUBLIC INPUT:

The project was noticed consistent with the requirements of both the Escondido Zoning Code and the State law. Staff has not received any correspondence from the public regarding the project as of the writing of this report.

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Project Name: Via Portofino
Planning Commission Meeting
Date: January 25, 2022

G. CONCLUSION AND RECOMMENDATION:

The proposed project is consistent with the General Plan and the SCCSP because it encourages higher density urban residential growth in the SCCSP area. The project site lies within the SCCSP Southern Entry District, which envisions high-density residenti al uses. The project would further the Land Use and Community Form goals in Chapter II of the Escondido General Plan, including those related to community character and smart growth, as well as the Housing goals in Chapter IV of the General Plan, which include planning for sustainable growth and providing housing opportunities for all income groups and household types, in addition to others.

The Planning Commission acts as an advisory body to the City Co uncil on applications for Development Agreements. As noted above, staff has found that the proposed project is consistent with the guiding principles for the Specific Plan Area identifi ed in the Land Use and Community Form element of the Escondido General Plan because it provides the type of high-density urban development envisioned for the area. The proposed project is designed consistent with applicable design guidelines and the project continues the trend of revitalization in the project area.

Staff recommends the Planning Commission adopt Resolution 2022-01, recommending approval of the proposed Plot Plan and Development Agreement described in this staff report, as detailed in Exhibits “A” through “E” of Attachment 3.

ATTACHMENTS:

1. Attachment 1- Location and General Plan Map

2. Attachment 2- CEQA Notice of Exemption

3. Attachment 3- Draft Planning Commission Resolution No. 2022- 01 with Exhibits “A” through “E”

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Attachment "2"
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Attachment "2"
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RESOLUTION NO. 2022-31

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, APPROVING A MAJOR PLOT

PLAN FOR A MULTI -FAMILY RESIDENTIAL PROJECT
LOCATED AT 2690 SOUTH ESCONDIDO BOULEVARD

WHEREAS, Portofino Holdings I, LLC (“Applicant”), filed a land use development application (“Application”) constituting a request for a Major Plot Plan for the construction of two, two -story multi- family residential buildings , consisting of a total of 15 apartment units , on 0.52 -acres of la nd in the Southern Entry District of the South Centre City Specific Plan (“Project”). The subject site is located on the east side of South Escondido boulevard, west of Cranston Drive, addressed as 2690 South Escondido Blvd; and
WHEREAS, the subject prop erty is the real property described in Exhibit ”A,” which is attached hereto and made part hereof by this reference as though fully set forth herein (“Property”); and WHEREAS, the Project is depicted in Exhibit “B,” which is attached hereto and made part hereof by this reference as though fully set forth herein; and WHEREAS, the Applicant has also requested a Development Agreement to allow a reduction in required onsite open space. Said D evelopment Agreement is bei ng considered by the City Council concurrently with the Project; and
WHEREAS, the Application was submitted to, and processed by, the Planning Division of the Community Development Department in accordance with the rules and regulations of the Escondido Zoning Code and the South Centre City Specific Plan and the applicable procedures and time limits specified by the Permit Streamlining Act ( Government Code section 65920 et seq) and the California Environmental Quality Act (Public Resources Code section 21000 et seq.) (“CEQA”); and 196
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WHEREAS, multi -family residential development is a permitted use within the Southern Entry District of the South Centre City Specific Plan; and
WHEREAS, pursuant to CEQA and the CEQA Guidelines (Title 14 of California Code of Regulations, Section 15000 et. seq.), the City is the Lead Agency for the Project, as the public agency with the principal responsibility for approving the proposed Project; and
WHEREAS, the Planning Division of the Community Development Department compl eted its review of the Project and scheduled the Project for consideration by the Planning Commission at a duly noticed public hearing on January 25, 2022 . At that hearing, the Planning Commission received and considered the reports and recommendation of the Planning Division and gave all persons full opportunity to be heard and to present evidence and testimony regarding the Project; and WHEREAS, on January 25, 2022, the Planning Commission adopted Planning Commission Resolution No. 2022-01, recommending to the City Council the approval of the Major Plot Plan and Development Agreement; and
WHEREAS, the City Council held a duly noticed pulic hearing to consider the request for the Major Plot Plan and Development Agreement at its regularly scheduled meeting on March 2, 2022, at which time the City Council received and considered the reports and recommendation of the Planning Division and Planning Commission, and gave all persons full opportunity to be heard and to present evide nce and testimony regarding the Project.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

2. That t he City Council , in its independent judgment, has determined the Project to be exempt from environmental review pursuant to CEQA Guidelines section 15332 (In -Fill Development 197
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Projects), and directs the Planning Division to file a Notice of Exemption for the Project describing the reasons why the Project qualifies for the exemption.

3. That the Findings of Fact (“Findings”), attached as Exhibit “C” and incorporated herein by this reference as though fully set forth herein, are hereby made by this City Council, and represent the City Council’s careful consideration of the record. The Findings of this City Council contained in Exhibit "C" shall be the final and determinative findings of fact on this matter.

4. That upon consideration of the staff report (a copy of which is on file in the Office of the City Clerk), the recommendations of the Planning Division and Planning Commission, the Findings, the Conditions of Approval attached as Exhibit “D” and incorporated herein by this reference as though fully set forth herein, and applicable law, the City Council finds that the Project is consistent with the General Plan.

5. That the City Council approves Res olution No. 2022-31, approving a Major Plot Plan for a multi-family project located at 2690 S. Escondido Boulevard.

6. That this approval is contingent upon City Council approval of, and shall become effective upon the effective date of, City Council Ordinance No. 2022-04. Should City Council Ordinance No. 2022-04 not be adopted, this approval shall be null and void.

BE IT FURTHER RESOLVED that, pursuant to Government Code Section 66020(d)(1):

1. NOTICE IS HEREBY GIVEN that the project is subject to certa in fees described in the City of Escondido’s Development Fee Inventory on file in both the Community Development Department and Public Works Department. The project is also subject to dedications, reservations, and exactions, as specified in the Conditions of Approval.

2. NOTICE IS FURTHER GIVEN that the 90-day period during which to protest the imposition of any fee, dedication, reservation, or other exaction described in this Resolution begins on the effective 198
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date of this Resolution and any such protest must be in a manner that complies with Government Code Section 66020.

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Resolution No. 2022-31
Exhibit “A”

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Escondido City CouncilMarch 2, 2022

Escondido City Council
March 2, 2022