Agenda packet — Escondido City Council, December 7, 2022 (part 1 of 6)

CITY of ESCONDIDO
Council Meeting Agenda
WEDNESDAY, DECEMBER 07, 2022
4:00 PM - Closed Session – Cancelled
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, December 07, 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, December 07, 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 remarks 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

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.

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) -

2. APPROVAL OF WARRANT REGISTER (COUNCIL) -
Request the City Council approve the City Council and Housing Successor Agency warrant numbers:
 368294 – 368439 dated November 9, 2022
 368440 – 368643 dated November 16, 2022
 368644 – 368787 dated November 22, 2022
Staff Recommendation: Approval (Finance Department: Christina Holmes) 3 Wednesday, December 07, 2022

3. APPROVAL OF MINUTES: Regular Meeting of November 16, 2022

4. WAIVER OF READING OF ORDINANCES AND RESOLUTIONS –

5. ANNUAL FINANCIAL REPORT ON CAPITAL FUNDS FUNDED BY DEVELOPMENT IMPACT FEES PER GOVERNMENT CODE SECTION 66006
Request the City Council receive and file the Annual Financial Report on Development Impact Fees.

Staff Recommendation: Receive and File (Finance Department: Christina Holmes, Director of Finance) Presenter: Christina Holmes

6. APPROVAL OF THE FISCAL YEAR 2023/24 RECOGNIZED OBLIGATION PAYMENT SCHEDULE Request the City Council adopt Resolution No. 2022-144, approving the Fiscal Year 2023/24 Recognized Obligation Payment Schedule (“ROPS”) so that the Successor Agency may continue to make payments due for enforceable obligations.

Staff Recommendation: Approval (Finance Department: Christina Holmes, Director of Finance) Presenter: Christina Holmes
a) Resolution No. 2022-144

7. AWARD CONSTRUCTION CONTRACT FOR THE JUNIPER ELEMENTARY BIKE/PEDESTRIAN IMPROVEMENT PROJECT AND APPROVE ACQUISITION AGREEMENT FOR 1644-1660 S. JUNIPER ST.

Request the City Council adopt Resolution No. 2022-160, awarding the construction contract to Granite Construction Company and authorizing the Mayor, on behalf of the City, to execute a Public Improvement Agreement in the amount of $2,078,216 for the Juniper Elementary Bike/Pedestrian Improvement Project (“Project”). It is also requested that the City Council adopt Resolution No. 2022- 136 authorizing the Mayor, on behalf of the City, to execute an Acquisition Agreement with the owners of 1644-1660 South Juniper Street (APN: 234-300-25-00) in the amount of $57,600 for payment of impacts to the property as required for the construction of Project improvements.

Staff Recommendation: Approval (Development Services Department: Andrew Firestine, Development Services Director and Julie Procopio, City Engineer)
Presenter: Jonathan Schauble, Principal Engineer
a) Resolution No. 2022-160
b) Resolution No. 2022-136
4 Wednesday, December 07, 2022

8. ANNEXING TERRITORY TO COMMUNITY FACILITIES DISTRICT (CFD) 2022-1 (ECLIPSE AND MOUNTAIN HOUSE) AND CITYWIDE SERVICES CFD 2020-1
Request the City Council adopt Resolution No. 2022-182 annexing territory of 32 residential units as Annexation No. 1 to Zone A of Community Facilities District (“CFD”) 2022-1 (Eclipse and Mountain House), and Resolution No. 2022-183 annexing territory of 32 residential dwelling units as Zone 2020-7 of the Citywide Services CFD 2020-1.

Staff Recommendation: Approval (Development Services Department: Andrew Firestine, Development Services Director and Julie Procopio, City Engineer)
Presenter: Julie Procopio
a) Resolution No. 2022-182
b) Resolution No. 2022-183

9. FINAL MAPS UNDER CONSIDERATION FOR APPROVAL
Request the City Council approve the following Final Maps that have been filed for approval by the City Engineer in accordance with Ordinance No. 2022-02: Tract SUB17-0007 at North Avenue and Laurashawn Lane: North Avenue Estates Project and Tract SUB18-0011 at 555 E. Valley Parkway: Palomar Heights Project.

Staff Recommendation: Approval (Development Services Department: Andrew Firestine, Director of Development Services)
Presenter: Julie Procopio, City Engineer

10. AWARD OF CONTRACT FOR CONSTRUCTION OF THE ESCONDIDO CREEK TRAIL FENCING PROJECT Request the City Council adopt Resolution No. 2022-165, awarding the construction contract to Lightning Fence Co., Inc., and authorizing the Mayor, on behalf of the City, to execute a Public Improvement Agreement in the amount of $324,400 for the Escondido Creek Trail Fencing Project (“Project”); and authorizing the Mayor to execute a change order in the amount of $404,500 for the construction of Phase 2 of the Project contingent on the programming of additional funding.

11. AWARD OF CONTRACT FOR SHORT-TERM RENTAL ADMINISTRATION Request the City Council adopt Resolution No. 2022-173, authorizing the Mayor to execute, on behalf of the City, a Consulting Agreement with Granicus, LLC, a Minnesota Limited Liability Company, for threeyears with two (2) options to extend the Consulting Agreement for one (1) year per extension, and approve a budget adjustment request in the amount of $42,000 for professional services for the Shortterm Rental Administration Project (“Project”).

Staff Recommendation: Approval (Development Services Department: Andrew Firestine, Director of Development Services, Jennifer Schoeneck, Deputy Director of Economic Development, and Christina Holmes, Director of Finance)
Presenter: Andrew Firestine
a) Resolution No. 2022-173

12. SANDAG SENIOR TRANSPORTATION GRANT
Request the City Council adopt Resolution No. 2022-166, authorizing the Deputy City Manager/Director of Communications and Community Services or his designee to apply for $92,463 in Senior Mini-Grant (SMG) funding through the San Diego Association of Governments (SANDAG); and if awarded, to accept the grant funds, complete the budget adjustment, and complete the grant documents on behalf of the City of Escondido (“City”).

Staff Recommendation: Approval (Community Services Department: Joanna Axelrod, Deputy City Manager / Director of Community Services)
Presenter: Robert Rhoades, Deputy Director of Community Services a) Resolution No. 2022-166

13. RYAN PARK FIELD EXPANSION
Request the City Council adopt Resolution No. 2022-157, authorizing an amendment to the scope of the Ryan Park Field Expansion and Lighting Capital Improvement Project (Project No. 501205) and authorizing the Mayor to execute an agreement with MUSCO Sports Lighting, LLC (“MUSCO”) for equipment to light two additional soccer fields at Frances Ryan Park with light-emitting diode (“LED”) technology in an amount not to exceed $276,700 utilizing Park Development funds.

Staff Recommendation: Approval (Public Works Department: Joseph Goulart, Director of Public Works) Presenter: Wayne Thames, Public Works Superintendent
a) Resolution No. 2022-157
6 Wednesday, December 07, 2022

14. CHANGE ORDERS FOR THE WEST 7TH AVENUE AND SOUTH BROADWAY WATER MAIN

REPLACEMENT PROJECT
Request the City Council adopt Resolution No. 2022-175, authorizing change orders to the Public Improvement Agreement with S.C. Valley Engineering, Inc., in the amount of $478,596.00 for the West 7th Avenue and South Broadway Water Main Replacement Project (“Project”).

Staff Recommendation: Approval (Utilities Department: Christopher W. McKinney, Deputy City Manager/Director of Utilities)
Presenter: Angela Morrow, Deputy Director of Utilities
a) Resolution No. 2022-175

15. DEPARTMENT OF WATER RESOURCES GRANT APPLICATION FOR RECYCLED WATER AND WATER

CONSTRUCTION PROJECTS
Request the City Council adopt Resolution No. 2022-180, authorizing the submittal of an application and execution of a funding agreement and any amendments thereto with the Department of Water Resources (“DWR”) for grant funding for the Hale Avenue Resource Recovery Facility (“HARRF”) Tertiary System Replacement Project and adopt Resolution No. 2022-181, authorizing submittal of an application and execution of a funding agreement and any amendments thereto with the DWR requesting grant funding for the Treated Water Interconnect Project.

16. MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF ESCONDIDO AND THE ESCONDIDO POLICE OFFICERS’ ASSOCIATION – SWORN PERSONNEL BARGAINING UNIT Request the City Council adopt Resolution No. 2022-184, approving a one-year extension to the Memorandum of Understanding (“MOU”) between the City of Escondido (“City”) and the Escondido Police Officers’ Association - Sworn Personnel Bargaining Unit (“Association”), commencing January 1, 2023 through December 31, 2023, and a budget adjustment of $279,300 to account for the increased contract costs in Fiscal Year 2022/23.

Staff Recommendation: Approval (Human Resources Department: Jessica Perpetua, Director of Human Resources)
Presenter: Jessica Perpetua
a) Resolution No. 2022-184

17. MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF ESCONDIDO AND THE ESCONDIDO FIREFIGHTERS’ ASSOCIATION – SAFETY AND NON-SAFETY PERSONNEL BARGAINING UNIT Request the City Council adopt Resolution No. 2022-185, approving the execution of a one-year contract extension to the Memorandum of Understanding (“MOU”) between the Escondido Firefighters’ Association – Safety and Non-Safety Bargaining Unit (“Association”) and the City of Escondido (“City”), commencing January 1, 2023 through December 31, 2023.

Staff Recommendation: Approval (Human Resources Department: Jessica Perpetua, Director of Human Resources)
Presenter: Jessica Perpetua
a) Resolution No. 2022-185

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.)

18. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ESCONDIDO, CALIFORNIA, AMENDING CHAPTER 6 OF THE ESCONDIDO MUNICIPAL CODE, TO ADOPT THE 2022 CALIFORNIA BUILDING, RESIDENTIAL,

PLUMBING, ELECTRICAL, MECHANICAL, HISTORICAL BUILDING, EXISTING BUILDING AND ENERGY

CODES, AND THE GREEN BUILDING STANDARDS CODE
Approved on November 16, 2022 with a vote of 5/0.
a) Ordinance No. 2022-21 (Second Reading and Adoption)
8 Wednesday, December 07, 2022

19. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ESCONDIDO, CALIFORNIA, AMENDING CHAPTER 11 OF THE ESCONDIDO MUNICIPAL CODE TO ADOPT THE 2022 CALIFORNIA FIRE CODE AND LOCAL

AMENDMENTS
Approved on November 16, 2022 with a vote of 5/0.
a). Ordinance No. 2022-22 (Second Reading and Adoption)

PUBLIC HEARINGS

20. ADOPTION OF THE CITY OF ESCONDIDO VMT EXCHANGE PROGRAM Request the City Council approve to adopt Resolution No. 2022-162, adopting the VMT Exchange Program and certifying/adopting the associated Initial Study/Negative Declaration prepared for the project.

21. MASTER AND PRECISE DEVELOPMENT PLAN FOR A DRIVE-THROUGH COFFEE FACILITY Request that the City Council conduct a public hearing on the development proposal and adopt Ordinance No. 2022-24 approving a Master Development Plan and Precise Development Plan for construction of a drive-through coffee facility at 1525 Tanglewood Lane in the City of Escondido; and for the adoption of a Notice of Exemption pursuant to the California Environmental Quality Act Guidelines. (APN: 235-090-35- 00) (“Project.”).

Staff Recommendation: Approval (Development Services Department: Andrew Firestine, Director of Development Services)
Presenter: Adam Finestone, City Planner
a) Ordinance No. 2022-24 (First Reading and Introduction)

22. VACATION OF A PORTION OF A PUBLIC STREET FORMERLY KNOWN AS PACIFIC AVENUE Request the City Council adopt Resolution No. 2022-134 authorizing the vacation of a portion of a public street formerly known as Pacific Avenue.

Staff Recommendation: Approval (City Manager’s Department: Jennifer Schoeneck, Deputy Director of Economic Development)
Presenter: Vince McCaw, Real Property Manager
a) Resolution No. 2022-134
9 Wednesday, December 07, 2022

23. VACATION OF PUBLIC STREET: A PORTION OF AN UNNAMED ALLEY IN BLOCK 75 OF ESCONDIDO, BETWEEN S. PINE STREET AND W. 2ND AVENUE
Request the City Council adopt Resolution No. 2022-133, authorizing the street vacation for a portion of the unnamed public alley in Block 75 of Escondido, between S. Pine Street and W. 2nd Avenue Staff Recommendation: Approval (City Manager’s Department: Jennifer Schoeneck, Deputy Director of Economic Development)
Presenter: Vince McCaw, Real Property Manager
a) Resolution No. 2022-133

CURRENT BUSINESS

24. CHANGE ORDERS FOR THE OAKVALE ROAD REALIGNMENT PROJECT Request the City Council adopt Resolution No. 2022-169, authorizing change orders to the Public Improvement Agreement with L.B. Civil Construction, Inc., in the amount of $4,963,698.45 for the Oakvale Road Realignment Project (“Project”).

Staff Recommendation: Approval (Utilities Department: Christopher W. McKinney, Deputy City Manager / Director of Utilities)
Presenter: Angela Morrow, Deputy Director of Utilities
a) Resolution No. 2022-169

25. FISCAL YEAR 2021/22 FINANCIAL STATUS REPORT AND AMERICAN RESCUE PLAN UPDATE Request the City Council receive and file the annual Financial Status Report and American Rescue Plan Update for FY2021/22 (Attachment 1); Adopt Budget Adjustments (Attachment 2) to distribute the fiscal year-end financial resources and commitments and allocate American Rescue Plan Act project funds; Adopt Resolution No. 2022-186 authorizing a three-year agreement with Crayon in the amount of $1,689,820 to provide a Microsoft Enterprise Licensing Agreement with Software Assurance (SA); and adopt Resolution No. 2022-178 Amending the Salary Schedule for the Unclassified and Management Groups and Adopt Resolution No. 2022-179 Amending the Part-time Salary Plan.

Staff Recommendation: Approval (Finance Department: Christina Holmes, Director of Finance) Presenter: Christina Holmes
a) Resolution No. 2022-186
b) Resolution No. 2022-178
c) Resolution No. 2022-179
10 Wednesday, December 07, 2022

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.

FUTURE AGENDA

26. 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
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

UPCOMING MEETING SCHEDULE
Wednesday, December 14, 2022 5:00 PM Installation Ceremony, Council Chambers Wednesday, January 11, 2023 4:00 & 5:00 PM Regular Meeting, Council Chambers 11 Consent Item No. 1 December 7, 2022

A F F I D A V I T S
OF

I T E M
P O S T I N G –
 Public Hearing Notice – VMT – PL22-0467
 Public Hearing Notice – PL22-0325/PL22-0326
 Public Notice of Street Vacation Hearing – Pacific Avenue  Public Notice of Street Vacation Hearing – Unnamed Alley in Block 75 12 Item1.

Published in THE ESCONDIDO TIMES-ADVOCATE:
11/24/22
13 Item1.

CITY OF ESCONDIDO

OFFICE OF THE CITY CLERK
201 NORTH BROADWAY
ESCONDIDO, CA 92025-2798
760-839-4617

NOTICE OF PUBLIC HEARING
The Escondido City Council will hold a public hearing in the City Council Chambers, Escondido City Hall, 201 N. Broadway, Escondido, California at 5 p.m. on Wednesday, December 07, 2022, to consider the item listed below:

MASTER PLAN AND PRECISE DEVELOPMENT PLAN - PL22-0325/PL22-0326 REQUEST: A request for a Master Plan and Precise Development Plan to facilitate the construction of a 1,023 square-foot drive-through coffee facility, along with associated on-site improvements including, but not limited to, dual drive-through lanes, trash enclosures, off-street parking, landscaping, and signage.

PROPERTY SIZE AND LOCATION: The approximately .46-acre site is located on the southwest side of Tanglewood Lane, adjacent to the Interstate 15, addressed at 1525 Tanglewood Lane (APN: 235-090-35-00) ENVIRONMENTAL STATUS: The Project is categorically exempt pursuant to California Environmental Quality Act Guidelines sections 15303 (New Construction or Conversion of Small Structures) and 15332 (In-Fill Development Projects).

If you challenge this item in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing.

PLANNING COMMISSION ACTION: On November 8, 2022, the Planning Commission voted 5-1 to recommend approval. One commissioner was absent.

PUBLIC COMMENT: To submit comments in writing, please do so at the following link: https://escondidoca.municodemeetings.com/bc-citycouncil/webform/public-comment. All comments received from the public will be made a part of the record of the meeting.

The City of Escondido remains committed to complying with the Americans with Disabilities Act (ADA). Qualified individuals with disabilities who wish to participate in City programs, services, or activities and who need accommodations are invited to present their requests to the City by filing out a Request for Accommodations Form or an Inclusion Support Request Form for Minors, or by calling 760-839-4643, preferably at least 72 hours in advance of the event or activity. Forms can be found on the City's website at:
https://www.escondido.org/americans-with-disabilities-act.

The staff report will be available at the Escondido
Planning Division, 201 N. Broadway, Escondido, CA
92025; and on the City's website at
https://escondido-ca.municodemeetings.com/ on or
around Thursday, December 1, 2022.

For additional information, please contact Ivan
Flores, Associate Planner, at 760-839-4529, or
via email at [email protected], and refer to
Case No. PL22-0325/PL22-0326
Zachary Beck, City Clerk
City of Escondido
November 24, 2022
Published in the ESCONDIDO TIMES-ADVOCATE: 11/24/22
14 Item1.

RESOLUTION NO. 2022-132

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, OF INTENTION TO VACATE

AND ABANDON A PORTION OF A PUBLIC STREET

SPECIFICALLY DESCRIBED HEREIN, LOCATED IN THE

CITY OF ESCONDIDO, AND SETTING A PUBLIC HEARING

TO RECEIVE PROTESTS
WHEREAS, the vacation of a portion of a certain City street known as Pacific Avenue and more specifically identified and described in Exhibits “A” and “B” hereto, is needed; and WHEREAS, the Escondido Planning Commission having made findings consistent with the proposed vacation of certain City streets to be consistent with the Escondido General Plan; and WHEREAS, the City Council of the City of Escondido, California, having received the recommendations of the City Engineer, and being fully advised in the premises, finds that it is in the public interest and convenience to hold a public hearing in order to consider the City Council’s intent to vacate and abandon a portion of the herein described street.

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

1. That the above recitations are true.

2. That it is the intention of the City Council to order a portion of a public street formerly known as Pacific Avenue, as more fully described in Exhibits “A” and “B” hereto, to be vacated, abandoned and closed to public use.

3. That portions of the public street proposed to be vacated are legally described in Exhibit “A” and depicted on plats in Exhibit “B.” Exhibits “A” and “B” are attached to this resolution and are incorporated by this reference.

15 Item1.

4. That this street vacation shall be conducted pursuant to the provisions of the Public Street, Highways and Service Easements Vacation Law, which act is now incorporated in Part 3, Division 9, Chap. 1 commencing at §8300 of the California Streets and Highways Code.

5. That notice is hereby given that the City Council will hear protests made by any person interested in or objecting to the said proposed street vacation at 5:00 p.m. on Wednesday, December 7, 2022, at the City Council Chambers, 201 North Broadway, Escondido, California.

6. That the City Clerk shall cause a copy of this resolution to be published consistent with the California Streets and Highways Code §8322, to post at least three notices of vacation along the line of the proposed street to be vacated at least two weeks prior to the hearing in accordance with California Streets and Highways Code §8323, and to send notice to affected public utility companies, if any, at least two weeks prior to the hearing.

16 Item1.

PASSED, ADOPTED AND APPROVED by the City Council of the City of Escondido at a regular meeting thereof the 16th day of NOVEMBER, 2022 by the following vote to wit:

AYE : Councilmembers: GARCIA, INSCOE, MORASCO, MARTINEZ, MCNAMARA NOES : Councilmembers: NONE
ABSENT : Councilmembers: NONE
APPROVED:

PAUL MCNAMARA, Mayor of the
City of Escondido, California
ATTEST:

ZACK BECK, City Clerk of the
City of Escondido, California
RESOLUTION NO. 2022-132

17 Item1.

Resolution No. 2022-132
Exhibit "A"

Page 1 of 1 ends

18 Item1.

Resolution No. 2022-132
Exhibit "B"

Page 1 of 1 ends

Published in THE ESCONDIDO TIMES-ADVOCATE: 11/24/22
19 Item1.

RESOLUTION NO. 2022-131

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, OF INTENTION TO VACATE

AND ABANDON A PORTION OF AN UNNAMED ALLEY,

SPECIFICALLY DESCRIBED HEREIN, LOCATED IN THE

CITY OF ESCONDIDO, AND SETTING A PUBLIC HEARING

TO RECEIVE PROTESTS
WHEREAS, the vacation of a portion of a certain City street, which is an unnamed alley in Block 75 of Escondido, generally located between South Pine Street and West 2nd Avenue and more specifically identified and described in Exhibits “A” and “B” hereto, is needed; and WHEREAS, the Escondido Planning Commission having made findings consistent with the proposed vacation of certain City street to be consistent with the Escondido General Plan; and WHEREAS, the City Council of the City of Escondido, California, having received the recommendations of the City Engineer, and being fully advised in the premises, finds that it is in the public interest and convenience to hold a public hearing in order to consider the City Council’s intent to vacate and abandon a portion of the herein described street.

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

1. That the above recitations are true.

2. That it is the intention of the City Council to order a portion of an unnamed alley, as more fully described in Exhibits “A” and “B” hereto, to be vacated, abandoned and closed to public use.

20 Item1.

21 Item1.

PASSED, ADOPTED AND APPROVED by the City Council of the City of Escondido at a regular meeting thereof the 16th day of NOVEMBER, 2022 by the following vote to wit:

AYE : Councilmembers: GARCIA, INSCOE, MORASCO, MARTINEZ, MCNAMARA NOES : Councilmembers: NONE
ABSENT : Councilmembers: NONE
APPROVED:

PAUL MCNAMARA, Mayor of the
City of Escondido, California
ATTEST:

ZACK BECK, City Clerk of the
City of Escondido, California
RESOLUTION NO. 2022-131

22 Item1.

Resolution No. 2022-131
Exhibit "A"

Page 1 of 1 ends

23 Item1.

Resolution No. 2022-131
Exhibit "B"

Page 1 of 1 ends

Published in THE ESCONDIDO TIMES-ADVOCATE: 11/24/22
24 Item1.

STAFF REPORT
December 7, 2022
File Number 0400-40

SUBJECT

APPROVAL OF WARRANT REGISTER (COUNCIL)

DEPARTMENT
Finance

RECOMMENDATION
Request approval for City Council and Housing Successor Agency warrant numbers:
368294 – 368439 dated November 9, 2022
368440 – 368643 dated November 16, 2022
368644 – 368787 dated November 22, 2022
Staff Recommendation: Approval (Finance Department: Christina Holmes)

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

November 3 – November 9, 2022, is $1,988,615.03
November 10 – November 16, 2022, is $1,321,068.79
November 17 – November 22, 2022, is $3,079,567.86

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. 25 Item2.

November 16, 2022 Escondido City Council Minutes Page 1 of 8

CLOSED SESSION
4:00 PM

CALL TO ORDER

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

CLOSED SESSION

1. CONFERENCE WITH LABOR NEGOTIATORS (Government Code §54957.6) a. Agency representative: Sean McGlynn (City Manager) and/or designee Employee organization: Escondido Police Officers’ Association (POA) b. Agency representative: Sean McGlynn (City Manager) and/or designee Employee organization: Escondido Firefighters’ Association (FFA)

ADJOURNMENT
Mayor McNamara adjourned the meeting at 4:42 p.m.
______________________________ _______________________________

MAYOR CITY CLERK
26 Item3.

November 16, 2022 Escondido City Council Minutes Page 2 of 8

REGULAR SESSION
5:00 PM Regular Session
November 16, 2022

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

PROCLAMATIONS
Small Business Saturday, November 26, 2022

CLOSED SESSION REPORT

ORAL COMMUNICATIONS
Nancy Burian – Expressed concern regarding street vendors in Escondido.

Gloria Conejo – Requested that the City Council work with NCTD to improve existing transportation infrastructure.

CONSENT CALENDAR
Motion: Morasco; Second: Inscoe; Approved: 5-0

1. AFFIDAVITS OF PUBLICATION, MAILING, AND POSTING (COUNCIL/RRB) - 27 Item3.

November 16, 2022 Escondido City Council Minutes Page 3 of 8

2. APPROVAL OF WARRANT REGISTER (COUNCIL) -
Request the City Council approve the City Council and Housing Successor Agency warrant numbers:
 367962 – 368094 dated October 26, 2022
 368095 – 368293 dated November 2, 2022
Staff Recommendation: Approval (Finance Department: Christina Holmes)

3. APPROVAL OF MINUTES: Regular Meeting of October 26, 2022

4. WAIVER OF READING OF ORDINANCES AND RESOLUTIONS –

5. AWARD OF CONSTRUCTION CONTRACT FOR 2022 STREET REHABILITATION AND MAINTENANCE PROJECT – PHASE 1 (SIDEWALK AND TREE REPLACEMENT) Request the City Council approve to adopt Resolution No. 2022-161 awarding the construction contract to L.C. Paving & Sealing, determined to be the lowest responsible and responsive bidder, and authorizing the Mayor, on behalf of the City, to execute a Public Improvement Agreement in the amount of $1,360,813.98 for Phase I of the Street Rehabilitation and Maintenance Project (“Project”).(File Number 0600-10;A-3436) Staff Recommendation: Approval (Development Services Department: Andrew Firestine, Development Services Director, and Julie Procopio, City Engineer) Presenter: Marissa Padilla, Associate Engineer
a) Resolution No. 2022-161

6. RESOLUTION OF INTENT TO VACATE A PORTION OF A PUBLIC STREET FORMERLY KNOWN AS

PACIFIC AVENUE
Request the City Council approve to adopt Resolution No. 2022-132 to set December 7, 2022 as the date to conduct a hearing to consider authorizing the street vacation for portions of Pacific Avenue.(File Number 0690-40)
Staff Recommendation: Approval (City Manager’s Department: Jennifer Schoeneck, Deputy Director of Economic Development)
Presenter: Vince McCaw, Real Property Manager
a) Resolution No. 2022-132
Ed Gallo – Expressed support for this item.

Motion: Morasco; Second: Inscoe; Approved: 5-0
28 Item3.

November 16, 2022 Escondido City Council Minutes Page 4 of 8

7. RESOLUTION OF INTENT TO VACATE A PORTION OF AN UNNAMED ALLEY IN BLOCK 75 OF ESCONDIDO, BETWEEN S. PINE STREET AND W. 2ND AVENUE
Request the City Council approve to adopt Resolution No. 2022-131 to set December 7, 2022 as the date to conduct a hearing to consider authorizing the street vacation for a portion of the unnamed public alley in Block 75 of Escondido, between S. Pine Street and W. 2nd Avenue. (File Number 0690-40)
Staff Recommendation: Approval (City Manager's Department: Jennifer Schoeneck, Deputy Director of Economic Development)
Presenter: Vince McCaw, Real Property Manager
a) Resolution No. 2022-131

8. NOTICE OF COMPLETION FOR THE HALE AVENUE RESOURCE RECOVERY FACILITY INFLUENT

PUMP STATION SCREENINGS CONVEYANCE SYSTEM PROJECT
Request the City Council approve to adopt Resolution No. 2022-168, authorizing the Deputy City Manager / Director of Utilities to file a Notice of Completion for the Hale Avenue Resource Recovery Facility (“HARRF”) Influent Pump Station Screenings Conveyance System Project.(File Number 0600-95)
Staff Recommendation: Approval (Utilities Department: Christopher W. McKinney, Deputy City Manager / Director of Utilities)
Presenter: Angela Morrow, Deputy Director of Utilities / Construction and Engineering a) Resolution No. 2022-168

9. FISCAL YEAR 2021-22 U.S. DEPARTMENT OF JUSTICE EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT – LOCAL SOLICITATION AND BUDGET ADJUSTMENT Request the City Council approve to adopt Resolution No. 2022-172 authorizing the Police Department to accept a $41,920 Fiscal Year 2021-22 Edward Byrne Memorial Justice Assistance Grant (JAG); authorizing the Chief of Police or his designee to execute grant documents on behalf of the City; and approving budget adjustments needed to spend grant funds. Grant funds will cover salary expenses for part-time patrol technicians. (File Number 0480-70)
Staff Recommendation: Approval (Police Department: David Cramer, Interim Chief of Police) Presenter: David Cramer
a) Resolution No. 2022-172
29 Item3.

November 16, 2022 Escondido City Council Minutes Page 5 of 8

10. FISCAL YEAR 2021 OPERATION STONEGARDEN GRANT
Request the City Council approve to adopt Resolution No. 2022-170, authorizing the Chief of Police to accept the Fiscal Year 2021 Operation Stonegarden Grant funds in the amount of $10,000 from the California Office of Emergency Services through the County of San Diego; authorizing the Chief of Police or his designee to execute grant documents on behalf of the City; and approve budget adjustments needed to spend grant funds. The Police Department will use grant funds to pay overtime expenses for multi-disciplinary crime suppression operations related to human trafficking, narcotics trafficking, weapons trafficking, and criminal gang activity.(File Number 0480-70)
Staff Recommendation: Approval (Police Department: David Cramer, Interim Chief of Police) Presenter: David Cramer
a) Resolution No. 2022-170

11. FISCAL YEAR 2022-23 STATE OF CALIFORNIA CITIZEN’S OPTIONS FOR PUBLIC SAFETY

PROGRAM GRANT
Request the City Council approve to adopt Resolution No. 2022-171, authorizing the Escondido Police Department to accept a Fiscal Year 2022-23 Citizens’ Option for Public Safety Program Grant in the amount of $232,722; approving grant expenditures consistent with guidelines in AB1913; authorizing the Chief of Police or his designee to execute grant documents on behalf of the City of Escondido (“City”); and approving budget adjustments needed to spend grant funds.(File Number 0480-70)
Staff Recommendation: Approval (Police Department: David Cramer, Interim Chief of Police) Presenter: David Cramer
a) Resolution No. 2022-171

12. PURCHASE ONE (1) TYPE 3 WILDLAND BRUSH ENGINE FROM BOISE MOBILE EQUIPMENT INC. (BME) OF BOISE,IDAHO
Request the City Council approve to adopt Resolution No. 2022-174, establishing a capital project and a Budget Adjustment, in the amount of $540,000 funded by the Rincon Del Diablo Fire Protection District, and authorizing the Fleet Services Division to purchase one (1) Type 3 Boise Mobile Equipment Wildland Brush Engine from Boise Mobile Equipment Inc. (“BME”) in the amount of $434,878.74 through a Cooperative Purchase Contract with the State of California, Contract No. 1-17-23-21B. The State of California cooperative purchase price includes all taxes, delivery, operator and mechanic training, and all associated fees. The balance of the capital project fund will be used to purchase the needed tools, hose, technology, radios and equipment for the new Brush Engine.(File Number 0470-20) 30 Item3.

November 16, 2022 Escondido City Council Minutes Page 6 of 8 Staff Recommendation: Approval (Public Works Department: Joseph Goulart, Director of Public Works)
Presenter: Joseph Goulart
a) Resolution No. 2022-174

13. DELEGATION OF AUTHORITY TO THE CITY MANAGER TO STUDY AND ESTABLISH PARKING

RESTRICTIONS AT ALL MUNICIPALLY OWNED PARKING LOTS
Request the City Council approve to adopt Resolution No. 2022-176, delegating authority to the City Manager to study, establish and post parking restrictions at all municipally owned parking lots.(File Number 1060-50)
Staff Recommendation: Approval (Public Works Department: Joseph Goulart, Director of Public Works)
Presenter: Joseph Goulart
a) Resolution No. 2022-176

14. TREASURER’S INVESTMENT REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2022 Request the City Council approve the Quarterly Investment Report for the quarter ended September 30, 2022.(File Number 0490-55)
Staff Recommendation: Approval (Finance Department: Douglas Shultz, City Treasurer) Presenter: Douglas Shultz

PUBLIC HEARING

15. ADOPTION OF THE 2022 CALIFORNIA BUILDING STANDARDS - CALIFORNIA CODE OF REGULATIONS TITLE 24
Request the City Council approve to adopt Ordinances 2022-21 and 2022-22, amending the City of Escondido Municipal Code to reflect the 2022 California Building, Residential, Plumbing, Electrical, Mechanical, Energy, Historical, Existing Building, Green Building Standards, Fire Codes, and proposed local amendments.(File Number 1000-90) Staff Recommendation: Approval (Development Services Department: Andrew Firestine, Development Services Director, and Fire Department: Rick Vogt, Fire Chief) Presenters: Doug Moody, Building Official, and LaVona Koretke, Deputy Fire Marshal a) Ordinance No. 2022-21 (First Reading and Introduction) 31 Item3.

November 16, 2022 Escondido City Council Minutes Page 7 of 8 b) Ordinance No. 2022-22 (First Reading and Introduction) Motion: Garcia; Second: Martinez; Approved: 5-0

CURRENT BUSINESS

16. PROPOSED EDI RATE ADJUSTMENTS
Request the City Council approve to adopt Resolution No. 2022-158, the annual residential and commercial solid waste and recycling rate adjustments pursuant to the terms of the City of Escondido’s (“City’s”) adopted Solid Waste and Recycling Franchise Agreement with Escondido Disposal, Inc. (“EDI”) Upon approval by the City Council, the proposed rate adjustments will become effective January 1, 2023.(File Number 1310-50)
Staff Recommendation: Approval (Utilities Department: Christopher W. McKinney, Deputy City Manager / Director of Utilities)
Presenter: Lori Calvert, Program Coordinator for Recycling a) Resolution No. 2022-158
Motion: Garcia; Second: Inscoe; Approved: 5-0

17. CITYWIDE PUBLIC SERVICES COMMUNITY FACILITIES DISTRICT (CFD) INFORMATIONAL UPDATE
Request the City Council provide direction to staff, as appropriate. No action is required at this time.(File Number 0685-20)
Staff Recommendation: Provide Direction (Development Services Department: Andrew Firestine, Director of Development Services)
Presenter: Andrew Firestine
Lori Pfeiler – Requested that the City Council eliminate Public Services Community Facilities Districts.

No Council Action Required.

FUTURE AGENDA

18. 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 32 Item3.

November 16, 2022 Escondido City Council Minutes Page 8 of 8 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) Garcia – Presentation on our citywide focus to address the unhoused population in Escondido.

COUNCILMEMBERS SUBCOMMITTEE REPORTS AND OTHER REPORTS
Inscoe – Attended the North County Philanthropy Council Awards Ceremony and the Church of RB Day of Service event at Kit Carson Park. Attended Vetfest at the American Legion.

Morasco – Attended Escondido Police Department Trunk or Treat event. Met with the Escondido Chamber of Commerce. Attended the Grape Day Aquatic Center stakeholder meeting.

Martinez – Attended the Dia de Los Muertos event at the California Center for the Arts. Attended an Air Pollution Control District meeting.

Garcia – Attended the North County Philanthropy Council Awards Ceremony. Attended Dia de Los Muertos at the California Center for the Arts. Attended Vetfest at the American Legion.

McNamara – Attended the North County Philanthropy Council Awards Ceremony and Vetfest at the American Legion.

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 6:20 p.m.
______________________________ _______________________________

MAYOR CITY CLERK
33 Item3.
34 Item4.

STAFF REPORT
December 07, 2022
File Number 0410-20

SUBJECT

ANNUAL FINANCIAL REPORT ON CAPITAL FUNDS FUNDED BY DEVELOPMENT IMPACT FEES PER GOVERNMENT CODE SECTION 66006

DEPARTMENT
Finance Department

RECOMMENDATION
Request that the City Council receive and file the Annual Financial Report on Development Impact Fees.

Staff Recommendation: Approval (Finance: Christina Holmes, Director of Finance) Presenter: Christina Holmes, Director of Finance

FISCAL ANALYSIS
There is no fiscal impact from this action.

PREVIOUS ACTION
The annual and five-year report for the Fiscal Year ending June 30, 2021, was brought to the City Council on December 15, 2021.

BACKGROUND
Government Code Section 66006 requires local agencies that impose Development Impact Fees to follow certain accounting procedures for tracking fee revenue received and to prepare an annual and five year report that make certain findings. The Fiscal Year June 30, 2022 Financial Information Report (Attachment “1”) provides the annual information required by the Government Code for the four Development Impact Fees that meet this reporting requirement: Park Development, Traffic Impact, Storm Drain, and Public Facilities. These fees are accounted for in separate funds, and each fund earns and accumulates interest.

No refunds have been made nor are any required. The next five-year report will be for the fiscal year ending June 30, 2026.

ATTACHMENTS

1. Attachment “1” – Financial Information Report
35 Item5.
1)
2) The amount of the fee
3)
4) The amount of fees collected, interest earned, and transfers/loans 5)
6)
7)
8) The amount of refunds made pursuant to the code, if applicable Beginning Fund
Balance
Developer
Fee
Revenue
Interest
Earned
Other Revenue &
Transfers-In
Capital
Expenditures &
Transfers-Out
Ending Fund
Balance
FUND 109 $ 4,841,739 $ 1,292,487 $ (163,503) $ - $ (1,117,077) $ 4,853,647 Park Fee:

Purpose:

Capital Expenditures and Transfers Out:

Project No. Expenditure Description Expenditures
501002 Expanded Arena Sports . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . 58,183 705 100% 501003 MVP Tennis Courts Resurfacing . . . . . . . . . . . . . . .. . . . . . . . . . - 12,210 100% 501102 NFC Fitness Courts . . . . . . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . 489,655 139,633 100% 501201 Library Pocket Park . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,237 22,763 100% 501203 Multipurpose Artificial Turf . . . . . . . . . . . . . . . . . . . . . . . . . - 135,960 100% 501204 Park Ball Field . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 350,000 100% 501205 Ryan Park Field Expansion . . . . . . . . . . . . . . . . . . . . . . . . - 350,000 100% 501501 Kit Carson Park Parking Lot Lights & Security . . . . . . . . . . . . . . . . . . 34,415 843,053 100% 501601 Grape Day Park Restrooms . . . . . . . . . . . . . . . . . .. . . . . . . . . . 53,697 2,058,228 100% 501602 City Park Capital Improvements . . . . . . . . . . . . . . . . .. . . . . . . . . . - 15,014 100% 501808 Play Equipment Shade Structure . . . . . . . . . . . . . . . . . . . . . . . . . . - 228,124 100% 501809 Washington Park Parking Lot Expansion . . . . . . . . . . . . . . . . . . . . . . 129,302 225,381 100% 501810 City Skate Spots . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . 344,587 381,075 100% 501903 Washington Park Improvements . . . . . . . . . . . . . . . . . . . . . . . - 6,000 100% 508901 Grape Day Park CPTED Improvements . . . . . . . . . . . . . . . . .. . . . . . . . . . - 366,243 100% Total Expenditures and Appropriations: $ 1,117,077 $ 5,134,389 This report contains information on the City of Escondido's Capital Funds Funded by Development Impact Fees. These fees collected from developers are subject to the Government Code Section 66000 et seq., which governs the administration of development fees paid by developers for the public facilities and infrastructure needed to serve the new development. In order to be in compliance with the government code, fees are accounted for in separate funds to ensure that the fees are spent on the specific purpose for which they were collected. This report is organized by the fund that each development fee is collected in and includes the following information:

ATTACHMENT 1
Capital Funds Funded by Development Impact Fees and Subject to Gov. Code Sec. 66006 Fiscal Year Ended June 30, 2022 Financial Information Report A brief description of the type of fee collected in each fund The beginning and ending balances in each fund
A description of the public improvements that the fees were spent on, along with the total percentage of the cost of the public improvement that was funded with the fees A description of each interfund transfer or loan made from each fund, along with the date the loan will be repaid and the rate of interest
The estimated date when projects will commence if sufficient funds have been collected to complete a project
For the fiscal year ended June 30, 2022 there were no refunds of development fees pursuant to the code. For more information regarding timelines, future uses, and history on the capital projects designated by the City Council in these funds, see the City of Escondido's Five Year Capital Improvement Program and Budgets, which are available on the City of Escondido's website or at the City Clerk's reference desk.

PARK DEVELOPMENT FUND
$6,986.29 per dwelling unit, $6,663.76 per dwelling unit for multi family development.

To ensure that the park land and recreational facility standards established by the City are met with respect to the additional needs created by such development.

FYE 2022
Appropriation
Balance
Fees as a % of
Total Project's
Funding
36 Item5.

ATTACHMENT 1
Capital Funds Funded by Development Impact Fees and Subject to Gov. Code Sec. 66006 Fiscal Year Ended June 30, 2022 Financial Information Report Beginning Fund
Balance
Developer
Fee
Revenue
Interest
Earned
Other Revenue &
Transfers-In
Capital
Expenditures &
Transfers-Out
Ending Fund
Balance
FUND 120 $ 8,374,201 $ 1,813,646 $ (320,180) $ - $ (35,903) $ 9,831,764 $4,191.77 per single-family dwelling unit, $2,095.37 per dwelling unit for multi family development (See City Fee Guide for Development Projects Traffic fee schedule for additional details) Purpose:

Regional Traffic (RTCIP) Fee: $2,635.50 per residential dwelling unit Purpose:

Capital Expenditures and Transfers Out:

Project No. Expenditure Description Expenditures
661001 Citracado, West Valley to Harmony Grove . . . . . . . . . . . . . . . . . . . . . . . 2,285 8,263,679 18% 661901 Centre City Parkway Signals . . . . . . . . . . . . . . . . . . .. . . . . . . . . . - 350,000 100% 668901 Roadway Network Update . . . . . . . . . . . . . . . . . .. . . . . . . . . . 33,618 134,093 100% Total Expenditures and Appropriations: $ 35,903 $ 8,747,772 Interfund Loans:

Beginning Fund
Balance
Developer
Fee
Revenue
Interest
Earned
Other Revenue &
Transfers-In
Capital
Expenditures &
Transfers-Out
Ending Fund
Balance
FUND 227 $ 1,181,999 $ 298,216 $ 9,353 $ - $ (528,932) $ 960,636 Drainage Facilities Single-family residential $1,136.12 per dwelling unit, non-residential $0.73 per sq. ft.

Fee:

Purpose:

Capital Expenditures and Transfers Out:

Project No. Expenditure Description Expenditures
671801 E Valley Pkwy & Midway Drainage Improvements . . . . . . . . . . . . . . . . . . .. . . . . . . . 149,169 746,648 100% 679908 Storm Drain - La Honda Drive . . . . . . . . . . . . . . . . . . .. . . . . . . . - 400,001 100% 799501 Fees Available for Developer Reimbursements . . . . . . . . . . . . . . . . . . . . . . 379,763 2,110 100% Total Expenditures and Appropriations: 528,932 1,148,759

TRAFFIC IMPACT FUND
Local Traffic Fee:

To ensure that the traffic and transportation facility standards established by the City are met with respect to the additional needs created by such development.

To ensure local agency participation in circulation improvements to allow quality of life standards to be achieved and allow new development to proceed.

FYE 2022
Appropriation
Balance
Fees as a % of
Total Project's
Funding
FYE 2022
Appropriation
Balance
Fees as a % of
Total Project's
Funding
During the fiscal year ended 1985, per CDC resolution 85-7, the traffic impact fund established a loan to the Community Development Commission (CDC) to provide funding to construct certain capital improvements as described in the Redevelopment Plan. The initial loan amount was $200,000, with accrued interest and payments received the current balance is $959,515.

STORM DRAIN FUND
Multi-family residential $469.22 per dwelling unit.

To ensure that storm water drainage facilities meet the requirements established by the City's Drainage Master Plan. 37 Item5.

Commercial $2.25 per square foot, Industrial $1.70 per square foot. Parking structure $0.61 per square foot.

Purpose:

Capital Expenditures and Transfers Out:

Project No. Expenditure Description Expenditures
100239 Computer Aided Dispatch . . . . . . . . . . . . . . . . . .. . . . . . . . . . - 80,036 100% 106702 RCS Financing . . . . . . . . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . 86,166 344,338 23% 100239 Development Impact Fee Inflation . . . . . . . . . . . . . .. . . . . . . . . . 12,176 85,604 46% 128101 Interface Point CAD . . . . . . . . . . . . . . . . . . .. . . . . . . . . . - 5,903 100% 128901 CAD Mapping Upgrade . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . - 345,000 100% 151701 Dumpster Enclosure Security Upgrades . . . . . . . . . .. . . . . . . . . . 2,606 744 100% 153009 GIS Public Internet Server . . . . . . . . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . - 3,584 100% 400901 Library Books & Circulating Materials . . . . . . . . . . . . . .. . . . . . . . . . 249,676 16,847 100% 406001 Public Printing . . . . . . . . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . 12,188 8,076 100% 408101 Library Expansion Project . . . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . - 100,000 100% 410001 PACC Fire Alarm Systems . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . 80,000 - 100% 501702 KCP Sports Center Restroom . . . . . . . . . . . . . . . . . . . . . . . - 75,690 100% 556201 Public Works Yard Generator . . . . . . . . . . . . . . . . . . . . . . . - 200,000 100% 556501 Public Works Yard Relocation . . . . . . . . . . . . . . . . . .. . . . . . . . . . 6,006 6,163,716 31% 601104 Traffic Signal Communication . . . . . . . . . . . . . . . .. . . . . . . . . . 34,272 824,985 76% Total Expenditures and Appropriations: $483,089 $8,254,524 Interfund Loans:

During the fiscal year ended 2019, per resolution 2018-146, the public facilities fund established a loan to the California Center for the Arts (CCAE) to expedite the purchase of a Sound System in the CCAE Concert Hall. The initial loan amount was $261,500 and is being repaid in monthly payments over 5 years. The loan is being repaid with an interest rate of 2.598%. The remaining balance on this loan as of June 30, 2022 is $68,589.68.

During the fiscal year ended 2020, per resolution 2019-161, the public facilities fund established a loan to the California Center for the Arts (CCAE) to finance Conference Center furnishings. The initial loan amount was $100,000 and is being repaid in monthly payments over 5 years.

The loan is being repaid with an interest rate of 3.069%. The remaining balance on this loan as of June 30, 2022 is $53,575.85.

PUBLIC FACILITIES FUNDS
Residential $4,969.99 per dwelling unit.

To ensure that public facility standards established by the City are met with respect to the additional needs created by such development. (For public facilities such as Police, Fire, Library, etc.) FYE 2022
Appropriation
Balance
Fees as a % of
Total Project's
Funding
38 Item5.

STAFF REPORT
December 7, 2022
File Number 0440-35

SUBJECT
APPROVAL OF THE FY2023/24 RECOGNIZED OBLIGATION PAYMENT SCHEDULE

DEPARTMENT
Finance

RECOMMENDATION
Request that the City Council adopt Resolution No. 2022-144, approving the FY2023/24 Recognized Obligation Payment Schedule (“ROPS”) so that the Successor Agency may continue to make payments due for enforceable obligations.

Staff Recommendation: Approval (Finance: Christina Holmes, Director of Finance) Presenter: Christina Holmes, Director of Finance

FISCAL ANALYSIS
Under the Redevelopment Dissolution Act, the Successor Agency is responsible for submitting to the County Oversight Board a payment schedule for obligations of the former Redevelopment Agency. The County Oversight Board will forward this payment schedule to the State for approval. Once approved by the State, the County of San Diego will fund the payments from the County Redevelopment Property Tax Trust Fund (RPTTF).

PREVIOUS ACTION
Resolution No. 2021-167, approving the Recognized Obligation Payment Schedule (ROPS22-23) was approved by the City Council on December 15, 2021.

BACKGROUND
Escondido’s Redevelopment Agency (“Redevelopment Agency”) was established in December 1984 in connection with the adoption of the Escondido Redevelopment Plan (“Plan”) and formation of a Redevelopment Project Area (“Escondido Redevelopment Project Area”). The Redevelopment Agency consisted of the members of the Escondido City Council, although the City and Redevelopment Agency were legally separate entities.
39 Item6.

In essence, redevelopment worked for decades by freezing the level of property taxes at the time the Redevelopment Agency adopted the Plan for the Escondido Redevelopment Project Area. During the existence of redevelopment, any increases in taxes went to the Redevelopment Agency, rather than the various entities that would have otherwise received the tax increases. This stream of revenue (the difference between taxes at the time of formation and the amount of increases, which occur over the years) was known as “tax increment” and could be used to pay the principal of and interest on loans, moneys advanced to, or indebtedness incurred by the Redevelopment Agency to finance a redevelopment project.

As part of the 2011 Budget Act, and in order to protect funding for core public services at the local level, the State Legislature approved the dissolution of the state’s 400 plus Redevelopment Agencies (“RDAs”).

The State of California’s passage of Assembly Bill X1 26 dissolved RDAs and replaced them with successor agencies effective February 1, 2012. As a result of the elimination of the RDAs, property tax revenues are now being used to pay required payments on existing bonds, other obligations, and pass-through payments to local governments. The remaining property tax revenues that exceed the enforceable obligations are being allocated to cities, counties, special districts, and school and community college districts.

To help facilitate the wind-down process at the local level, successor agencies were established to manage redevelopment projects currently underway, make payments on enforceable obligations, and dispose of redevelopment assets and properties. The City of Escondido elected to serve as the Successor Agency for the Redevelopment Agency.

Pursuant to Health and Safety Code Section 34179(j), on July 1, 2018, one Countywide Oversight Board (“Countywide OB”) was created. The Countywide OB consists of seven members representing agencies in the County and it will continue to oversee and approve the wind down actions of the successor agencies for former redevelopment agencies. As such, all actions of the Successor Agency approved by the City Council will then be submitted to the Countywide OB for approval, and then to the State Department of Finance for final approval.

RECOGNIZED OBLIGATION PAYMENT SCHEDULE OUTSTANDING OBLIGATIONS The Recognized Obligation Payment Schedule for July 2023 through June 2024 (Exhibit “A”) lists one enforceable obligation of the Redevelopment Agency:

Loan Repayment to Traffic Impact Fund: $150,000
California Health and Safety Code Section 33445 authorized a redevelopment agency to enter into agreements with the host city to borrow money and accept financial assistance from the city for redevelopment projects located within the agency’s jurisdiction. Because newly formed agency funding was limited to a future, expected stream of tax increment, cities often loaned agencies both staff and 40 Item6.
funding to get redevelopment projects started. By Escondido Community Development Commission (“CDC”) Resolution 1985-07, the Traffic Impact Fund loaned the Redevelopment Agency $200,000 for certain Nordahl Bridge improvements. Under Section 5 of Resolution No. CDC 85-7, the Commission agreed to reimburse the City for the advance from whatever revenue the Commission is entitled to and to pay interest at the rate of twelve percent (12%) per annum. On December 18, 2012, this Loan was recognized by the Department of Finance to be an enforceable obligation of the Successor Agency.

Listed in ROPS23-24 (Exhibit “A”) is a request for approval of a payment of $150,000, which includes available funds of $62,138 and RPTTF funds of $87,862. The $150,000 total payment will result in an ending loan balance of $885,616 including accrued interest, summarized in the table below:

FY2022/23 Ending Balance $924,657
ROPS23-24 Payment (150,000)
FY2023/24 Accrued Interest (12%) 110,959
FY2023/24 Ending Balance $885,616

RESOLUTIONS
a. Resolution No. 2022-144
b. Resolution No. 2022-144 – Exhibit “A” – ROPS 23-24
41 Item6.

RESOLUTION NO. 2022-144

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AS THE SUCCESSOR AGENCY

TO THE ESCONDIDO REDEVELOPMENT AGENCY,

ADOPTING A RECOGNIZED SCHEDULE OF ENFORCEABLE
OBLIGATIONS FOR THE PERIOD OF JULY 2023 THRU
JUNE 2024 PURSUANT TO HEALTH AND SAFETY CODE
SECTION 34177
WHEREAS, pursuant to authorizing Resolution No. 2012-16, the City Council of the City of Escondido elected to serve as the Successor Agency and Successor Housing Agency to the Escondido Redevelopment Agency; and
WHEREAS, pursuant to Health and Safety Code Section 34177, successor agencies are required to make payments due for enforceable obligations and adopt a Recognized Obligation Payment Schedule (“ROPS”); and
WHEREAS, pursuant to Health and Safety Code Section 34177, a ROPS must be adopted that lists all of the enforceable obligations within the meaning of Health and Safety Code Section 34167(d), and must thereafter be reviewed by other entities, updated, and published in a specific manner; and WHEREAS, it is the intention of the City Council of the City of Escondido as the Successor Agency to the Escondido Redevelopment Agency to adopt the ROPS so that the Successor Agency may continue to make payments due for enforceable obligations.

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

1. That the above recitations are true.
42 Item6.

2. That the City Council, as the Successor Agency to the Escondido Redevelopment Agency, hereby adopts the ROPS for the period of July 2023 to June 2024, which is attached hereto as Exhibit “A” and incorporated by this reference.
43 Item6.

Resolution No. 2022-144
Exhibit "A"
Successor Agency: Escondido
County: San Diego
23-24A Total
(July -
December)
23-24B Total
(January -
June)
ROPS 23-24
Total
A $ 62,138 $ - $ 62,138

B - - -

C - - -
D 62,138 - 62,138
E 87,862 - 87,862
F 87,862 - 87,862

G - - -
H Current Period Enforceable Obligations (A+E): $ 150,000 $ - $ 150,000 Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
Redevelopment Property Tax Trust Fund (RPTTF) (F+G)
RPTTF
Administrative RPTTF
Recognized Obligation Payment Schedule (ROPS 23-24) - Summary Filed for the July 1, 2023 through June 30, 2024 Period Enforceable Obligations Funded as follows (B+C+D):

Bond Proceeds
Reserve Balance
Other Funds
44 Item6.

STAFF REPORT
December 7, 2022
File Number 0600-10;A-3434

SUBJECT

AWARD CONSTRUCTION CONTRACT FOR THE JUNIPER ELEMENTARY BIKE/PEDESTRIAN IMPROVEMENT PROJECT AND APPROVE ACQUISITION AGREEMENT FOR 1644-1660 S. JUNIPER ST.

DEPARTMENT
Development Services, Engineering Services

RECOMMENDATION
Request that the City Council adopt Resolution No. 2022-160, awarding the construction contract to Granite Construction Company, determined to be the lowest responsible and responsive bidder, and authorizing the Mayor, on behalf of the City, to execute a Public Improvement Agreement in the amount of $2,078,216 for the Juniper Elementary Bike/Pedestrian Improvement Project (“Project”).

It is also requested that the City Council adopt Resolution No. 2022-136 authorizing the Mayor, on behalf of the City, to execute an Acquisition Agreement with the owners of 1644-1660 South Juniper Street (APN: 234-300-25-00) in the amount of $57,600 for payment of impacts to the property as required for the construction of Project improvements.

Staff Recommendation: Approval (Andrew Firestine, Development Services Director and Julie Procopio, City Engineer)

FISCAL ANALYSIS
This Project is included in the adopted Capital Improvement Program and is funded in part by $1,096,764 in Active Transportation Program grant funds (Juniper Safe Routes to School Project) and $592,884 in TransNet and Gas Tax funds. Available funding designated for traffic signal improvements will be used to pay for $505,000 in traffic signal modifications. Available Gas Tax funds designated for traffic infrastructure improvements will be used to pay for the cost of the installation of a Rapid Flashing Beacon totaling $25,000.

Bids received for the Project were higher than estimated. Based on feedback from bidders, higher than normal costs are driven by recent inflation along with the requirement for bidders to meet the Disadvantaged Business Enterprise (DBE) participation goal of twenty-two percent that was established for this Project as a condition of the Active Transportation Program grant funding. 45 Item7.

PREVIOUS ACTION
On November 28, 2018, the Council adopted Resolution No. 2018-182, authorizing the City Engineer to execute an Active Transportation Grant agreement in the amount of $1,336,000 for the Juniper Elementary Safe Routes to School project.

On October 26, 2022, the Council adopted Resolution No. 2022-129, rejecting all bids for the Juniper Elementary Bike/Pedestrian Improvement Project and authorizing staff to re-bid the project.

BACKGROUND
The Project will fill in gaps in the sidewalk on Juniper Street between Chestnut Street and Vermont Avenue, install upgraded pedestrian crossings, and Class II bicycles lanes to provide safer access to Juniper Elementary School. The Project will also improve the intersections of Juniper Street with Felicita Avenue and Escondido Boulevard with Felicita Avenue to provide pedestrian countdown timers, Accessible Pedestrian Signal (APS) pedestrian pushbutton (audible tones and vibrotactile surfaces), enhanced crosswalk striping and protected left turns. Additional Project improvements include the installation of curb and gutter, driveway approaches, and pedestrian ramps, the removal and replacement of existing pavement and the construction of new roadway, the installation of new tree wells with underdrains, new water services and fire hydrants, storm drain upgrades, landscaping, construction of retaining walls, and signage and striping upgrades.

On November 17, 2022, five (5) sealed bids were received in response to the advertised request for bids for the Project. The confirmed totals for the total base and additive alternate bid items are listed below:

Granite Construction Company $2,078,216.00
Blue Pacific Engineering Construction Inc. $2,099,697.16 Tri-Group Construction, Inc $2,251,126.00
Palm Engineering Construction Company, Inc. $2,289,843.50 L.B. Civil Construction $2,395,123.00
Staff recommends that the bid submitted by Granite Construction Company be considered the lowest responsive and responsible bid that also meets the DBE criteria required for the CDBG funding. Staff further recommends that the Additive Alternate Bid Schedule work, which includes the repair of failing pavement within the Project limits and the installation of a Rectangular Rapid-Flashing Beacon (RRFB) at the pedestrian crossing on Juniper Avenue at 13th Avenue, be included as part of the contract awarded to Granite Construction Company for the Project in the total amount of $2,078,216.

This Project results in impacts to the property at 1644-1660 S. Juniper Street/APN: 234-300-25, including removal of an existing carport and impacts to landscaping and parking lot improvements. The City made a written offer to acquire the interests to the recorded owners of the property in an amount that was not 46 Item7.
less than the appraised fair market value. City staff and property owners have negotiated for payment of the acquired property interest and impacts to the property, in the total amount of $57,600. Staff recommends approval of the associated acquisition agreement as necessary to complete the Project.

RESOLUTIONS
a. Resolution No. 2022-160
b. Resolution No. 2022-160 – Exhibit A – Public Improvement Agreement c. Resolution No. 2022-136
d. Resolution No. 2022-136 – Exhibit A – Acquisition Agreement 47 Item7.

RESOLUTION NO. 2022-160

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR

TO EXECUTE, ON BEHALF OF THE CITY, A PUBLIC

IMPROVEMENT AGREEMENT FOR THE JUNIPER

ELEMENTARY BIKE/PEDESTRIAN IMPROVEMENT

PROJECT
WHEREAS, the City Council has authorized acceptance of an Active Tranportation Grant and has allocated funding in the adopted Capital Improvement Program budget for the Juniper Elementary Bike/Pedestrian Improvements Project (“Project”); and
WHEREAS, a notice inviting bids for said improvements was duly published; and WHEREAS, pursuant to said notice, five sealed bids for the Project were opened and evaluated on November 17, 2022; and
WHEREAS, Granite Construction Company was determined to be the lowest responsive and responsible bidder; and
WHEREAS, this City Council desires at this time and deems it to be in the best public interest to authorize a Public Improvement Agreement with Granite Consctrution Compnay in the amount of $2,078,216.

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 Mayor to execute, on behalf of the City, a Public Improvement Agreement with Granite Construction Compnay, in a substantially similar form to that which 48 Item7.
is attached and incorporated to this Resolution as Exhibit “A”, and subject to final approval as to form by the City Attorney.
49 Item7.

CITY OF ESCONDIDO

PUBLIC IMPROVEMENT AGREEMENT
This Public Improvement Agreement (“Agreement”) is made and entered into as of this ____ day of _____________________, 2022 (“Effective Date”),
Between: CITY OF ESCONDIDO
a California municipal corporation
201 N. Broadway
Escondido, CA 92025
Attn: Marissa Padilla
760-839-4098
("CITY")
And: GRANITE CONSTRUCTION COMPANY
a California corporation
5860 El Camino Real, #200
Carlsbad, CA 92008
Attn: Scott McArthur
760-444-1028
("CONTRACTOR").
(The CITY and CONTRACTOR each may be referred to herein as a “Party” and collectively as the “Parties.”)
WHEREAS, the Parties desire to enter into this Agreement for the performance of work relating to the Juniper Elementary Bike/Pedestrian Improvement Project (“Project”), occurring on property located along Juniper Ave. between Chestnut St. and Vermont Ave. and at the intersections of Felicita Ave. and Juniper St. and Felicita Ave. and Escondido Blvd. (“Property”), as further described herein.

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

1. Project Documents. The Notice Inviting Sealed Bids/Notice to Contractors, Instructions to Bidders, Bid Form, Designation of Subcontractors, Workers' Compensation Certificate, Change Orders, Shop Drawing Transmittals, Information Required of CONTRACTOR, Non-collusion Affidavit, Insurance Certificates, Guarantees, General Conditions, Supplementary General Conditions, Special Conditions, Plans, Drawings, Specifications, the Agreement, and all modifications, addenda, and amendments thereto (“Project Documents”) are incorporated herein Resolution No. 2022-160
Exhibit "A"
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50 Item7.
by this reference as if fully set forth herein. The Project Documents are complementary, and what is called for by any one shall be as binding as if called for by all.

2. Description and Performance of Work. CONTRACTOR shall furnish all work described in the Project Documents (“Work”). All Work to be performed and materials to be furnished shall be completed in a good workmanlike manner, free from defects, in strict accordance with the plans, drawings, specifications, and requirements set forth in the Project Documents and all provisions of this Agreement.

3. Compensation. In exchange for CONTRACTOR’s completion of the Work, the CITY shall pay, and CONTRACTOR shall accept in full, an amount not to exceed the sum of $2,078,216.00 (“Contract Price”). CONTRACTOR shall be compensated only for performance of the Work described in this Agreement. No compensation shall be provided for any other work or services without the CITY’s prior written consent.

4. Term and Time of Performance. CONTRACTOR shall commence work within one week from the CITY's notice to proceed. CONTRACTOR shall diligently perform and complete the Work with professional quality and technical accuracy within 80 working days after the City’s Notice to Proceed (“Completion Date”). Extension of terms or time of performance shall be subject to the CITY’s sole discretion.

5. Time Is of the Essence. If the Work is not completed by the Completion Date, it is understood that the CITY will suffer damage. It being impractical and infeasible to determine the amount of actual damage, in accordance with Government Code section 53069.85, the Parties agree that CONTRACTOR shall pay to the CITY as fixed and liquidated damages, and not as a penalty, the sum of $500 per day for each calendar day of delay until the Work is completed and accepted (“Liquidated Damages Amount”). The Liquidated Damages Amount shall be deducted from any payments due to, or that become due to, CONTRACTOR. CONTRACTOR and CONTRACTOR'S surety shall be liable for the Liquidated Damages Amount.

6. Insurance Requirements.
a. CONTRACTOR shall procure and maintain, at its own cost, during the entire term of this Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the Work, and the results of such Work, by CONTRACTOR, its agents, representatives, employees, or subcontractors. Insurance coverage shall be at least as broad as the following:
(1) Commercial General Liability. Insurance Services Office (“ISO”) Form CG 0001 11188 covering Commercial General Liability on an “occurrence” basis, including products and completed operations, property damage, bodily injury (including emotional distress), sickness, disease, or death of any person other than the CONTRACTOR's employees, and personal and advertising injury, and damages because of injury or destruction of tangible property, including loss of use resulting there from, with limits no less than $3,000,000 combined single limit coverage per occurrence for bodily injury and property damage; or, if a general aggregate limit is applicable, either: (i) the general aggregate limit shall specifically apply to the project identified in the bid specifications or to the location of such project which is the subject of these bid specifications with coverage to be no less than $3,000,000, or (ii) the general aggregate shall be at least $3,000,000 combined single limit coverage per occurrence for bodily injury and property damage. (2) Automobile Liability. ISO Form CA 00 01 covering any auto (Code 1), or if CONTRACTOR has no owned autos, hired (Code 8) and non-owned autos (Code 9), Resolution No. 2022-160
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including damages because of bodily injury, death of a person, or property damage arising out of the ownership, maintenance, or use of a motor vehicle, all mobile equipment, and vehicles moving under CONTRACTOR’s control and engaged in the Work, with limits no less than $3,000,000 combined single limit per accident for bodily injury and property damage.
(3) Workers’ Compensation. Workers' Compensation as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease.
(4) Builder’s Risk/“All Risk” Insurance. The CONTRACTOR, during the progress of the Work and until final acceptance of the Work by CITY, shall maintain Builder's Risk/"All Risk," course-of-construction insurance satisfactory to CITY issued on a completed value basis of all WORK pursuant to this Agreement. Coverage is to provide extended coverage and insurance against vandalism, theft, malicious mischief, perils of fire, sprinkler leakage, civil authority, sonic boom, earthquake, collapse, flood, wind, lightning, smoke, riot, debris removal (including demolition), and reasonable compensation for the Engineer's services and expenses required as a result of such insured loss upon the Work, including completed Work and Work in progress to the full insurable value thereof.

Such insurance shall include the CITY and the City Engineer as an additional named insured and any other person with an insurable interest designated. (5) If CONTRACTOR maintains broader coverage and/or higher limits than the minimums otherwise required by this Agreement, the CITY requires and shall be entitled to the broader coverage and/or the higher limits maintained by CONTRACTOR. b. Each insurance policy required by this Agreement must be acceptable to the City Attorney and shall meet the following requirements:
(1) Compliance with General Condition Requirements. Insurance coverage shall comply with and meet all requirements set forth in Article 5.2 of General Conditions

Resolution No. 2022-160
Exhibit "A"
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52 Item7.
(6) Subcontractors. If applicable, CONTRACTOR shall require and verify that all subcontractors maintain insurance meeting all the requirements stated within this Agreement, and CONTRACTOR shall ensure that the CITY (including its officials, officers, agents, employees, and volunteers) is an additional insured on any insurance required from a subcontractor.
(7) Waiver of Subrogation. CONTRACTOR hereby grants to the CITY a waiver of any right to subrogation that any insurer of CONTRACTOR may acquire against the CITY by virtue of the payment of any loss under such insurance. CONTRACTOR agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this subsection shall apply regardless of whether or not the CITY has received a waiver of subrogation endorsement from the insurer. Any Workers’ Compensation policy required by this Agreement shall be endorsed with a waiver of subrogation in favor of the CITY for all work performed by the CONTRACTOR, its agents, representatives, employees and subcontractors.
(8) Self-Insurance. CONTRACTOR may, with the CITY’s prior written consent, fulfill some or all of the insurance requirements contained in this Agreement under a plan of selfinsurance. CONTRACTOR shall only be permitted to utilize such self-insurance if, in the opinion of the CITY, CONTRACTOR’s (i) net worth and (ii) reserves for payment of claims of liability against CONTRACTOR are sufficient to adequately compensate for the lack of other insurance coverage required by this Agreement. CONTRACTOR’s utilization of self-insurance shall not in any way limit the liabilities assumed by CONTRACTOR pursuant to this Agreement.
(9) Self-Insured Retentions. Self-insured retentions must be declared to and approved by the CITY.
c. Verification of Coverage. At the time CONTRACTOR executes this Agreement, CONTRACTOR shall provide the CITY with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting the insurance coverage required by this Agreement), which shall meet all requirements under this Agreement. The CITY reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by this Agreement, at any time. d. Special Risks or Circumstances. The CITY reserves the right, at any point during the term of this Agreement, to modify the insurance requirements in this Agreement, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
e. No Limitation of Obligations. The insurance requirements within this Agreement, including the types and limits of insurance coverage CONTRACTOR must maintain, and any approval of such insurance by the CITY, are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONTRACTOR pursuant to this Agreement, including but not limited to any provisions within this Agreement concerning indemnification. f. Compliance. Failure to comply with any of the insurance requirements in this Agreement, including but not limited to a lapse in any required insurance coverage during the term of this Agreement, shall be a material breach of this Agreement. Compliance by CONTRACTOR with the requirement to carry insurance and furnish certificates, policies, Additional Insured Endorsement and Declarations Page evidencing the same shall not relieve the CONTRACTOR from liability assumed under any provision of this Agreement, including, Resolution No. 2022-160
Exhibit "A"
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53 Item7.
without limitation, the obligation to defend and indemnify the CTY and the City Engineer. In the event that CONTRACTOR fails to comply with any insurance requirement set forth in this Agreement, in addition to any other remedies the CITY may have, the CITY may, at its sole option, (i) immediately terminate this Agreement; or (ii) order CONTRACTOR to stop Work under this Agreement and/or withhold any payment that becomes due to CONTRACTOR until CONTRACTOR demonstrates compliance with the insurance requirements in this Agreement.

7. Indemnification, Duty to Defend, and Hold Harmless.
a. CONTRACTOR (including CONTRACTOR’s agents, employees, and subcontractors, if any) shall indemnify, defend, and hold harmless the CITY, its 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”), of every nature caused by, arising out of, or in connection with CONTRACTOR’s (including CONTRACTOR’s agents, employees, and subcontractors, if any) Work pursuant to this Agreement or its failure to comply with any of its obligations contained herein, except where caused by the active negligence, sole negligence, or willful misconduct of the CITY. b. CONTRACTOR (including CONTRACTOR’s agents, employees, and subcontractors, if any) shall indemnify, defend, and hold harmless the CITY, its officials, officers, agents, employees, and volunteers from and against any and all Claims caused by, arising under, or resulting from any violation, or claim of violation, of the San Diego Municipal Storm Water Permit (Order No.

R9-2013-0001, as amended) of the California Regional Water Quality Control Board, Region 9, San Diego, that the CITY might suffer, incur, or become subject to by reason of, or occurring as a result of, or allegedly caused by, any Work performed pursuant to this Agreement.
c. All terms and provisions within this Section 7 shall survive the termination of this Agreement.

Resolution No. 2022-160
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54 Item7.
d. If the surety on any bond furnished by the CONTRACTOR is declared bankrupt or becomes insolvent or its right to do business is terminated in any state where any part of the Work is located, the CONTRACTOR shall, within seven days thereafter, substitute another bond and surety, which must be acceptable to the CITY. No portion of the Work shall be performed without bonds, in a form and issued by a surety acceptable to the City. If one or more of such bonds shall, at any time, not be in full force and effect, CONTRACTOR shall immediately cease performance of the Work until CONTRACTOR is in full compliance with the bonding requirements of this Agreement and California law. All delays and costs incurred or resulting from such occurrence shall be to the exclusive account of CONTRACTOR. Failure of the CONTRACTOR to promptly cure any failure to have the necessary bonds in full force and effect shall be grounds for immediate termination of this Agreement. e. All bonds shall be obtained from surety companies that are duly licensed or authorized in the State of California. Such surety companies shall also meet any additional requirements and qualifications as may be provided in the Supplementary General Conditions.

9. Substitution of Securities. This Agreement is subject to California Public Contract Code section 22300, which permits the substitution of securities for any monies withheld by the CITY to ensure performance of this Agreement. At the request and expense of the CONTRACTOR, securities equivalent to the amount withheld shall be deposited with the CITY, or with a state- or federallychartered bank in this state as the escrow agent, who shall then pay those moneys to CONTRACTOR. Upon satisfactory completion and acceptance of the Work, such securities shall be returned to the CONTRACTOR.

10. Contractor Default. In the event CONTRACTOR, for a period of 10 calendar days after receipt of written demand from the CITY to do so (“Cure Period”), fails to furnish tools, equipment, or labor in the necessary quantity or quality required by this Agreement, or fails to prosecute the Work and all parts thereof in a diligent and workmanlike manner, or after commencing to do so within the Cure Period, fails to continue to do so, then the CITY in its sole discretion may exclude the CONTRACTOR from the Property, or any portion thereof, and take exclusive possession of the Property or any portion thereof, together with all material and equipment thereon, and may complete the Work or any portion of the Work, either by (i) furnishing the necessary tools, equipment, labor, or materials; or (ii) letting the unfinished portion of the work, or any portion thereof, to another contractor; or (iii) demanding the surety hire another contractor; or (iv) any combination of such methods. The CITY’s procuring of the completion of the Work, or the portion of the Work taken over by the CITY, shall be a charge against the CONTRACTOR and may be deducted from any money due or to become due to CONTRACTOR from the CITY, or the CONTRACTOR shall pay the CITY the amount of such charge, or the portion thereof unsatisfied.

The sureties provided for under this Agreement shall become liable for payment if CONTRACTOR fails to pay in full any such cost incurred by the CITY. The permissible charges for any such procurement of the completion of the Work include actual costs and fees incurred to third party individuals and entities (including but not limited to consultants, attorneys, inspectors, and designers) and actual costs incurred by the CITY for the increased dedication of time of the CITY’s employees to the Project.

11. Other Legal Requirements Incorporated. Each and every provision of law and clause required by law to be inserted in this Agreement or its attachments shall be deemed to be inserted herein, and this Agreement shall be read and enforced as though such law or clause were included herein, and if through mistake or otherwise any such provision is not inserted, or is not currently inserted, then upon application of either Party, the Agreement shall forthwith be physically amended to make such insertion or correction, without further changes to the remainder of the Agreement.

Resolution No. 2022-160
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55 Item7.

12. Merger Clause. This Agreement, together with its attachments or other documents described or incorporated herein, if any, constitutes the entire agreement and understanding of the CITY and CONTRACTOR 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. In the event of any conflict between the provisions of this Agreement and any of its attachments or related documents, if any, the provisions of this Agreement shall prevail.

13. Attorney’s Fees and Costs. In any action to enforce the terms and conditions of this Agreement, the prevailing Party shall be entitled to reasonable attorney’s fees and costs.

14. Independent Contractor. CONTRACTOR is an independent contractor, and no agency or employment relationship is created by the execution of this Agreement.

15. Amendment. This Agreement shall not be amended except in a writing signed by the CITY and CONTRACTOR, and pursuant to action of the Escondido City Council.

16. Anti-Waiver Clause. None of the provisions of this Agreement shall be waived by the CITY because of previous failure to insist upon strict performance, nor shall any provision be waived because any other provision has been waived by the CITY, in whole or in part.

17. 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.

18. 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. Venue for any action arising from this Agreement shall be conducted only in the state or federal courts of San Diego County, California.

19. Counterparts. This Agreement may be executed on separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. Delivery of an executed signature page of this Agreement by electronic means, including an attachment to an email, shall be effective as delivery of an executed original. The Agreement on file with the City is the copy of the Agreement that shall take precedence if any differences exist between or among copies or counterparts of the Agreement.

20. Provisions Cumulative. The foregoing provisions are cumulative to, in addition to, and not in limitation of any other rights or remedies available to the CITY.

21. Business License. CONTRACTOR shall obtain a City of Escondido Business License prior to execution of this Agreement and shall maintain such Business License throughout the term of this Agreement.

22. Compliance with Laws, Permits, and Licenses. CONTRACTOR shall keep itself informed of and comply with all applicable federal, state, and local laws, statutes, codes, ordinances, regulations, rules, and other legal requirements in effect during the term of this Agreement. This shall include, but shall not be limited to, all California Labor Code laws regarding payment of prevailing wages and all OSHA regulations. CONTRACTOR shall obtain any and all permits, licenses, and other authorizations necessary to perform the work under this Agreement. Neither the CITY, nor any elected or appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of CONTRACTOR to comply with this section.

23. Prevailing Wages and Department of Industrial Relations Compliance. Pursuant to California Labor Code section 1770 et seq., CONTRACTOR agrees that a prevailing rate and scale of Resolution No. 2022-160
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wages, in accordance with applicable laws, shall be paid in performing this Agreement.

CONTRACTOR shall keep itself informed of and comply with all applicable federal, state, and local laws, statutes, codes, ordinances, regulations, rules, and other legal requirements pertaining to the payment of prevailing wages, including but not limited to the keeping of certified payroll records, overtime pay, employment of apprentices, and workers' compensation coverage, as further set forth in the General Conditions. CONTRACTOR shall file the required workers' compensation certificate before commencing work under this Agreement. This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

CONTRACTOR shall post all job site notices required by regulation. CONTRACTOR, as well as any subcontractors, shall be registered pursuant to California Labor Code section 1725.5 to be qualified to bid on, be listed in a bid proposal (subject to the requirements of Public Contract Code section 4104), or engage in the performance of any public works contract subject to the requirements of Division 2, Part 7, Chapter 1 of the California Labor Code. Neither the CITY, nor any elected or appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of CONTRACTOR to comply with this section.

24. Immigration Reform and Control Act of 1986. CONTRACTOR shall keep itself informed of and shall comply with the Immigration Reform and Control Act of 1986 (“IRCA”). CONTRACTOR represents and warrants that all of its employees and the employees of any subcontractor retained by CONTRACTOR who perform any portion of the Work under this Agreement are and will be authorized to perform the Work in full compliance with the IRCA. CONTRACTOR affirms that as a licensed contractor and employer in the State of California, all new employees must produce proof of eligibility to work in the United States within the first three days of employment and that only employees legally eligible to work in the United States will perform the Work. CONTRACTOR agrees to comply with the IRCA before commencing any portion of the Work, and continuously throughout the performance of the Work and the term of this Agreement.

25. Federal Grant Funds. The Parties acknowledge that Active Transportation Program funds will be used to fund all or a portion of this Agreement. The CONTRACTOR shall comply with all applicable federal laws, regulations, executive orders, policies, procedures, and directives relating to such federal funds including those detailed in Exhibit 1 which is attached hereto and incorporated herein by this reference.

26. Effective Date. Unless a different 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. (SIGNATURE PAGE FOLLOWS)
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57 Item7.

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

CITY OF ESCONDIDO
Date: __________________ ___________________________________ Paul McNamara
Mayor
[CONTRACTOR COMPANY NAME]
Date: __________________ ___________________________________ Signature
___________________________________
Name & Title (please print)
___________________________________
Contractor's License No.
___________________________________
Tax ID/Social Security No.

APPROVED AS TO FORM:

OFFICE OF THE CITY ATTORNEY
MICHAEL R. MCGUINNESS, City Attorney
BY: __________________________
THE CITY OF ESCONDIDO DOES NOT DISCRIMINATE AGAINST QUALIFIED PERSONS WITH DISABILITIES.

Resolution No. 2022-160
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58 Item7.

RESOLUTION NO. 2022-136

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR TO

EXECUTE, ON BEHALF OF THE CITY, AN ACQUISITION
AGREEMENT WITH THE OWNERS OF 1644-1660 SOUTH

JUNIPER STREET, FOR THE PROPERTY IMPROVEMENTS

TO BE ACQUIRED IN ASSOCIATION WITH THE JUNIPER

ELEMENTARY BIKE/PEDESTRIAN IMPROVEMENT

PROJECT
WHEREAS, the City of Escondido (“City”) plans to complete the Juniper Elementary Bike/Pedestrian Improvements Project (“Project”), which will provide pedestrian and bike paths, and will include the installation of new sidewalk, curb and gutter, pedestrian ramps, driveway approaches, retaining walls, as well as grading for the construction of these improvements; and WHEREAS, in order to carry out the principal purpose of the Project, it is necessary for the City to provide compensation to the owners of the property located at 1644-1660 South Juniper Street, with Assessors Parcel No 234-300-25-00, for landscaping, site improvements, plans and permit fees in association with Project impacts to the property; and
WHEREAS, on or about January 19, 2022, the City made a written offer to acquire the interest to the recorded owners of the property in an amount that was not less than the appraised fair market value; and
WHEREAS, City staff and property owners have negotiated an Acquisition Agreement for payment of the acquisition of the property interest and impacts to the property located at 1644-1660 South Juniper Street, in the total amount of $57,600.00; and
WHEREAS, this City Council desires at this time and deems it to be in the best public interest to approve the Acquisition Agreement.
59 Item7.

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

1. That the above recitations are true.

2. The Mayor is authorized to execute, on behalf of the City, the Acquisition Agreement with Jeramiah J. Jennings and Bunny R. Campbell. A copy of the Acquisition Agreement is attached hereto as Exhibit “A” and is incorporated by this reference.
60 Item7.
-1-
PROJECT:

A.P.N.:

ADDRESS:

OWNER:

Juniper Elementary Bike/Pedestrian
Improvement Project
234-300-25
1644-1660 S. Juniper Street
Jeramiah J. Jennings and
Bunny R. Campbell

ACQUISITION AGREEMENT
This Acquisition Agreement (“Agreement”) is entered into this ___ day of _________________, 2022 by and between the CITY OF ESCONDIDO, a municipal corporation (hereinafter called “Buyer”), and Jeramiah J. Jennings and Bunny R. Campbell, as joint tenants (hereinafter called “Seller”), for the acquisition, by Buyer, of certain property as hereinafter set forth.

IT IS HEREBY MUTUALLY AGREED BETWEEN THE PARTIES AS FOLLOWS:

1. AGREEMENT TO SELL AND PURCHASE. Seller agrees to sell to Buyer and Buyer agrees to purchase from Seller, upon the terms and for the consideration set forth in this Agreement, all that certain improvements to real property (hereinafter called “Property”) situated in the City of Escondido, County of San Diego, State of California, and legally described on Exhibit “A” attached hereto and by reference made a part hereof. It is mutually agreed that the performance of this agreement constitures the entire consideration for said document and shall relieve the Buyer of all further obligation or claims.

2. PURCHASE PRICE.
a. The total purchase price, payable in cash through escrow, shall be FIFTY-SEVEN THOUSAND SIX HUNDRED DOLLARS ($57,600.00).
b. Seller agrees that the sum of $57,600 is just compensation for the following amounts:

Land $0
Landscaping and Site Improvements $53,500
Severance Damages $0
Other (Permit to Enter, Plans/Permits) $4,100

3. NOTICES. Any notice that either party is required, or otherwise may desire, to give to the other party, must be in writing and may be given by personal delivery or by mailing the same by registered or certified mail, return receipt requested, to the party to whom the notice is directed at the address of such party set forth at the end of this Agreement, or such other address as the parties may hereinafter designate by giving notice in the manner Resolution No. 2022-136
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provided for herein. Any notice given by mail shall be deemed given forty-eight (48) hours after such notice is deposited in the United States mail, addressed as provided, with postage fully prepaid.

MAILING ADDRESS OF BUYER:

City of Escondido
201 N Broadway

MAILING ADDRESS OF
SELLER: Jeramiah J. Jennings
735 Mclain St
Escondido, CA 92027 Escondido, CA 92025

4. WAIVER and RELEASE. Seller hereby waives and releases Buyer from any and all claims for damages, liabilities, losses or injury related to the Property, including, but not limited to, (i) any and all claims concerning the alleged presence or release of any chemical, material, substance, or waste in, on, over, or around the Property, including such claims related to or brought pursuant to any local, state, or federal environmental law or regulation, including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. § 9601 et seq., and the CarpenterPresley-Tanner Hazardous Substance Account Act, California Health & Safety Code § 25300 et seq.; and (ii) any and all claims arising from Buyer’s acquisition of the Property.

5. COST OF SUIT. In the event of any litigation, arbitration, quasi-judicial, or administrative proceeding between the parties herein to: (1) enforce any provision of this Agreement; (2) enforce any remedy available for default within this Agreement; or (3) seek a declaration of the rights of either party on each party’s respective interests in the Property, the prevailing party shall be entitled to recover from the other such attorney’s fees and costs as may be reasonably incurred.

6. RIGHT OF ENTRY. Seller hereby grants to Buyer or Buyer’s authorized agents permission to enter upon any property adjacent to the Property that is owned by Seller to construct any necessary slopes, grades, drainage structures, utility service connections or relocations, and/or driveway conformances.

7. COUNTERPARTS. This Agreement may be executed in counterparts, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original, and all such counterparts together shall constitute one and the same instrument.

8. SUCCESSORS AND ASSIGNS. The terms, conditions, covenants, and agreements set forth herein shall apply to and bind the heirs, executors, administrators, assigns, and successors of the parties hereto.

9. ENTIRE AGREEMENT. This Agreement contains the entire agreement and understanding concerning the subject of this Agreement between the parties, and supersedes and replaces all prior negotiations or proposed agreements, written or oral. Each of the parties 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, and acknowledges that and neither party in executing this Agreement has relied upon any promise, representation, or warranty not contained in this Agreement.

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IN WITNESS WHEREOF, the parties have executed this Agreement the day and year set forth below.

SELLER
Date: ____________________________ By:__________________________________ Jeramiah J. Jennings
SELLER
Date: ____________________________ By:__________________________________ Bunny R. Campbell

CITY OF ESCONDIDO,
a municipal corporation
Date: ____________________________ By:__________________________________ Paul McNamara, Mayor
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EXHIBIT “A”

ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF ESCONDIDO, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:

PARCEL 1:

ALL THAT PORTION OF THE SOUTH HALF OF THE NORTH HALF OF LOT 5, BLOCK 188 OF RANCHO RINCON DEL DIABLO, IN THE CITY OF ESCONDIDO, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 725, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, AUGUST 13, 1892, DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHWEST CORNER OF THE NORTH HALF OF SAID LOT 9, THENCE NORTH 78° 29' 20" EAST ALONG THE SOUTHERLY LINE THEREOF A DISTANCE OF 161.00 FEET; THENCE NORTH 11° 30' 40" WEST, 168.00 FEET, MORE OR LESS, TO THE NORTH LINE OF SAID SOUTH HALF OF THE NORTH HALF OF LOT 9; THENCE WESTERLY ALONG SAID NORTH LINE TO THE WEST LINE OF SAID LOT 9; THENCE SOUTHERLY ALONG THE WESTERLY LINE OF SAID LOT 9, 168.37 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.

EXCEPTING THEREFROM THAT PORTION GRANTED TO THE CITY OF ESCONDIDO FOR STREET PURPOSES IN DEED RECORDED JANUARY 2, 1975, AS INSTRUMENT NO. 75-000446.

PARCEL 2:

AN EASEMENT AND RIGHT OF WAY FOR INGRESS AND EGRESS FOR ROAD AND

WATER PIPE LINES AND APPURTENANCES THERETO OVER THAT PORTION OF THE NORTHERLY 25 FEET OF THE ABOVE DESCRIBED SOUTH HALF OF THE NORTH HALF OF SAID LOT 9, LYING EASTERLY OF THE EASTERLY LINE OF PARCEL 1 HEREINABOVE DESCRIBED AND WESTERLY OF A LINE WHICH BEARS SOUTH 11° 29' 30" EAST FROM A POINT IN THE NORTHERLY LINE OF SAID LOT 9, DISTANT THEREON NORTH 78° 30' 30" EAST 220.50 FEET FROM THE NORTHWESTERLY CORNER OF SAID LOT 9.

Assessor’s Parcel Number: 234-300-25
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STAFF REPORT
December 7, 2022
File Number 0850-20

SUBJECT
ANNEXING TERRITORY TO COMMUNITY FACILITIES DISTRICT (CFD) 2022-1 (ECLIPSE AND MOUNTAIN HOUSE) AND CITYWIDE SERVICES CFD 2020-1

DEPARTMENT
Development Services, Engineering Services

RECOMMENDATION
Request that the City Council adopt Resolution No. 2022-182 annexing territory of 32 residential units as Annexation No. 1 to Zone A of Community Facilities District (“CFD”) 2022-1 (Eclipse and Mountain House), and Resolution No. 2022-183 annexing territory of 32 residential dwelling units as Zone 2020-7 of the Citywide Services CFD 2020-1.

Staff Recommendation: Approval (Andrew Firestine, Development Services Director and Julie Procopio, City Engineer)
Presenter: Julie Procopio, City Engineer

FISCAL ANALYSIS
Formation and annexation costs associated with CFD 2022-1 (Eclipse and Mountain House) are paid for by the Developer 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 No. 2021-115.

PREVIOUS ACTION
On March 16, 2022, the City Council introduced the second reading and adopted Ordinance No. 2022-03, authorizing the levy of special taxes.

On March 2, 2022, the City Council held a public hearing and introduced the first reading of Ordinance No. 2022-03, authorizing the levy of special taxes. City Council approved Resolution No. 2022-10 establishing Community Facilities District (“CFD”) 2022-1 consisting of 117 residential dwelling units and future annexation area of 32 residential dwelling units, and Resolution No. 2022-11 determining the necessity to incur bonded indebtedness for the Eclipse and Mountain House Projects. Further recommendations included the adoption of Resolution No. 2022-12 certifying election results, and 65 Item8.

Resolution No. 2022-14 annexing 117 residential dwelling units as Zone 2020-7 of the Citywide Services CFD 2020-1.

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 bond 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.

On December 14, 2005, the City Council approved a Final Map for the Mountain 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
CWC Escondido 113 LLC (Developer), an affiliated entity of CALWest, together herein referred to as CALWest submitted a petition to request that the City Council establish a Facilities CFD and issue bonds in an amount not to exceed $6-million to fund public facilities associated with the Eclipse and Mountain House Projects. The Facilities CFD was formed by action taken by the City Council on March 2, 2022.

Because at the time of formation CALWest did not own a portion of the Eclipse development, CALWest asked that this land be identified as a future annexation area to Zone A of CFD 2022-1. CALWest now owns this land and is requesting its annexation into the Facilities CFD created for the project. In consideration of the benefit bond financing provides to the project and the long-term administration of the Facilities CFD that the City will provide, CAL West has offered and completed annexation of the Eclipse and Mountain House projects to the Services CFD. CALWest now requests annexation of the balance of the Eclipse project into the Services CFD.

COMPLIANCE WITH CITY CFD POLICY
The special tax rates established at the time of the formation of CFD 2022-1 were reevaluated and found to meet all provisions of the City’s Amended and Restated Goals and Policies for Community Facilities Districts (“Policy”), adopted March 25, 2020. In November of 2022, the Developer provided recent sales pricing for the units proposed to be annexed.
66 Item8.

Shown below is a sample of the established special tax rates per dwelling unit for the proposed annexation into Zone A of CFD 2022-1 and the resulting estimated total tax burden for FY 2022-23 for Zone A, Eclipse:

Zone Home Size Base Sales
Price
Facilities
CFD/Yr.

Facilities
CFD %
Services
CFD/Yr.

Services
CFD %
Total Tax
Burden
A 1,140 square feet $601,900 $2,249.20 0.37% $778.01 0.13% 1.66% A 1,290 square feet $631,900 $2,371.25 0.38% $778.01 0.12% 1.64% A 1,534 square feet $691,900 $2,615.42 0.38% $778.01 0.11% 1.64% A 1,568 square feet $681,900 $2,615.42 0.38% $778.01 0.12% 1.64% In accordance with the Policy, the formation documents include protection 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 0.37-0.38% 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 assessment liens and/or special tax liens to confirm that this requirement is met.

Services CFD 2020-01:
67 Item8.

Although already entitled, the Eclipse and Mountain House Projects have agreed to annex into the Citywide Services CFD No. 2020-1 as Zone 2020-7. 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 have submitted their unanimous consent to annex into the Citywide Services CFD (Attachment 2).

CALWest understands that the City Council has directed staff to update the fiscal analysis prepared for the Services CFD which may result in lower tax levies and/or a new rate and method of apportionment.

CALWest has asked that the City proceed with annexing the balance of the Eclipse project into the Services CFD. Annexing at this time allows CALWest to maintain their desired timeline for issuance of bonds and occupancy of units.

RESOLUTIONS
A. RESOLUTION NO. 2022-182, Annexing Territory to CFD 2022-1, Annexation No. 1

1. Exhibit A: Unanimous Approval of Property Owner to Annex into CFD 2022-1

2. Exhibit B: Notice of Special Tax Lien CFD 2022-1, Annexation 1

3. Exhibit C: Boundary Map for CFD 2022-1, Annexation 1

4. Exhibit D: Legal Description
B. RESOLUTION NO. 2022-183, Annexing Territory to CFD 2020-1 (Services), Zone 2020-7

1. Exhibit A: Unanimous Approval of Property Owner to Annex into CFD 2020-1

2. Exhibit B: Notice of Special Tax Lien CFD 2020-1, Zone 2020-7

3. Exhibit C: Boundary Map for CFD 2020-1, Zone 2020-7

4. Exhibit D: Legal Description
68 Item8.

RESOLUTION NO. 2022-182

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ACTING AS THE LEGISLATIVE
BODY OF THE COMMUNITY FACILITIES DISTRICT NO.
2022-1 OF THE CITY OF ESCONDIDO
(ECLIPSE/MOUNTAIN HOUSE), ANNEXING TERRITORY
TO COMMUNITY FACILITIES DISTRICT 2022-1 OF THE

CITY OF ESCONDIDO (ECLIPSE/MOUNTAIN HOUSE)
WHEREAS, on January 26, 2022, the City Council (the “City Council”) of the City of Escondido adopted Resolution No. 2022-02 (the “Resolution of Intention”), declaring its intention to establish Community Facilities District 2022-1 of the City of Escondido (Eclipse/Mountain House) (“Community Facilities District 2022-1” 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 facilities (the “Facilities”) and incidental expenses (the “Incidental Expenses”) that may be financed 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 March 2, 2022, after a duly noticed public hearing, the City Council adopted Resolution No. 2022-10 (the “Resolution of Formation”) establishing Community Facilities District No. 2022-1 and calling a special election therein to authorize (i) the levy of special taxes pursuant to the Rate 69 Item8.
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; and WHEREAS, pursuant to a Unanimous Approval executed by Robert H. Thorne on behalf of CWC Escondido 113 LLC, a Delaware limited liability company, (the “Owner”), dated November 4, 2022, attached hereto as Exhibit “A” (the “Unanimous Approval”), the Owner stated its intention to annex the territory described in Exhibit “B” 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.

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

1. That the above recitals are true.

2. 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 Unanimous Approval is hereby approved.

3. The map showing the original boundaries of the District designated as “Boundary Map of Community 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 No. 89 on February 1, 2022, as Instrument No. 2022-7000033. 70 Item8.

4. 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. 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 the 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 the Facilities and Incidental Expenses. 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. 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 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. 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 agricultural, timber or livestock products is contiguous to 71 Item8.
other land within the Annexation Territory and will be benefited by the Facilities proposed to be provided within Community Facilities District No. 2022-1 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 Facilities as are proposed to be provided by Community Facilities District 2022-1. 72 Item8.

Resolution No. 2022-182
Exhibit "A"

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1 OF 1 SEPTEMBER 2022 SHEET DATE
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)
ANNEXATION NO. 1
1 LEGEND: LOT NUMBER
ANNEXATION NO. 1 COMMUNITY FACILITIES DISTRICT BOUNDARY 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 BROTHERTON RD

CENTRE CITY PKWY
Scale In Feet
100 0 100 200
2 1
ZONE A
NAP

EXISTING
BOUNDARY OF CFD NO. 2022-1 ZONE A
JOB NO. CFD2022-1 ANX-1

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 ANNEXATION NO. 1 TO 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
Resolution No. 2022-182
Exhibit "B"

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City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 1 of 22

RATE 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.

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City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 2 of 22
“Annexed 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.
“Contractual Obligations” means (a) a voluntary contractual assessment established and levied on an Assessor’s Parcel pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets 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 Section 53328.1 of the California Government Code and related provisions of the Act, as amended from time to time, and (c) any other fee, charge, tax, or assessment established and levied on an individual Assessor’s Parcel pursuant to a contractual agreement or other voluntary consent by the owner thereof (e.g., property owner association assessments).

Resolution No. 2022-182
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City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 3 of 22
“County” 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 1st 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.

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City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 4 of 22
“Land 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 Resolution No. 2022-182
Exhibit "C"

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82 Item8.

City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 5 of 22
determined 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 1st 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 1st 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 1st 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 Resolution No. 2022-182
Exhibit "C"

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83 Item8.

City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 6 of 22
entity 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.

Resolution No. 2022-182
Exhibit "C"

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City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 7 of 22
“Trustee” 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
Each 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.

Resolution No. 2022-182
Exhibit "C"

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85 Item8.

City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 8 of 22

1. Developed 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
Land Use
Category
Property
Description
Unit
Type
Developed
Floor Area
Assigned
Special Tax Per
Taxable Unit
Zone A
1 Residential Dwelling Unit Less than 1,200 sq. ft. $2,249.20 2 Residential Dwelling Unit 1,200 sq. ft. to 1,400 sq. ft. $2,371.25 3 Residential Dwelling Unit Greater than 1,400 sq. ft. $2,615.42 4 Non-Residential Projected
Dwelling Unit
NA $2,558.01
Zone B
1 Residential or
Non-Residential
Lot 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.

Resolution No. 2022-182
Exhibit "C"

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86 Item8.

City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 9 of 22

2. For 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 Resolution No. 2022-182
Exhibit "C"

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City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 10 of 22
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 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 Zone A
Assessor’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*
Initial Boundaries of Zone A (Final Map SUB15-0022)
238-130-11-00 Final Map 0 5 5
238-130-26-00 Final Map 0 21 21
238-130-27-00 Final Map 0 55 55
Annexed Area of Zone A (Tentative Map SUB15-0023)
238-130-35-00 Undeveloped 0 16 16
238-130-36-00 Undeveloped 0 16 16
Total 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. Within 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.

Resolution No. 2022-182
Exhibit "C"

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City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 11 of 22
D. ADJUSTMENT 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
Commencing 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 Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property up to 100% of the applicable Assigned Special Tax; and
Resolution No. 2022-182
Exhibit "C"

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City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 12 of 22
Second: 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 has 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 three 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 four 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
Any 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.

Tax 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 Resolution No. 2022-182
Exhibit "C"

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City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 13 of 22
provided 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
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 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 Resolution No. 2022-182
Exhibit "C"

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City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 14 of 22
its 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 following 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. Prepayment 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 nonrefundable 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):

Resolution No. 2022-182
Exhibit "C"

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92 Item8.

City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 15 of 22
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
equals 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”).

Resolution No. 2022-182
Exhibit "C"

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City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 16 of 22

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 Resolution No. 2022-182
Exhibit "C"

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City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 17 of 22
proposed 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 = (PE x F) + G
These terms have the following meaning:

PP = the partial Prepayment Amount
PE = 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.

Resolution No. 2022-182
Exhibit "C"

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City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 18 of 22

EXHIBIT A

CERTIFICATE OF MODIFICATION OF SPECIAL TAXES
(Page 1 of 2)
CITY OF ESCONDIDO AND CFD No. 2022-1 CERTIFICATE

1. Pursuant 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___
Land Use
Category
Property
Description
Unit
Type
Developed
Floor Area
Assigned
Special Tax Per
Taxable Unit
Zone A
1 Residential DU Less than 1,200 sq. ft. $[___ ]
2 Residential DU 1,200 sq. ft. to 1,400 sq. ft. $[ ]
3 Residential DU Greater than 1,400 sq. ft. $[ ]
4 Non-Residential PDU NA $[ ]
Zone B
1 Residential DU NA $[ ]
2 Non-Residential Lot NA $[ ]
b. In 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:

Resolution No. 2022-182
Exhibit "C"

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City of Escondido
December 9, 2021
Community Facilities District No. 2022-1 Page 19 of 22

EXHIBIT A

CERTIFICATE OF MODIFICATION OF SPECIAL TAXES
(Page 2 of 2)
TABLE 2
Backup Special Taxes for Developed Property
Commencing Fiscal Year 20___-20___
Zone Backup Special Tax per Dwelling Unit or Lot*
Zone A $[ ]
Zone 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: Date:

Resolution No. 2022-182
Exhibit "C"

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Resolution No. 2022-182
Exhibit “D”

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EXHIBIT D

LEGAL DESCRIPTION
APN and ownership information for CWC Escondido 113 LLC, a Delaware limited liability company:
238-130-35
238-130-36
TOTAL ACREAGE: 1.44 acres.
98 Item8.

RESOLUTION NO. 2022-183

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 (the “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 services 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 99 Item8.
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, (the “Owner”), dated November 4, 2022, attached hereto as Exhibit “A” (the “Unanimous Approval”), the Owner stated its intention to annex the territory described in Exhibit “B” 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.

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

1. That the above recitals 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 Unanimous Approval is hereby approved.

3. 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 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. 100
Item8.

5. 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 the 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 Resolution of Intention), and (ii) Incidental Expenses (as defined in the Resolution of Intention). 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.

7. 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 agricultural, 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. 102
Item8.

Resolution No. 2022-183
Exhibit "A"

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Resolution No. 2022-183
Exhibit "A"

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Resolution No. 2022-183
Exhibit "A"

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Resolution No. 2022-183
Exhibit "A"

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Resolution No. 2022-183
Exhibit "A"

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1 OF 1 OCTOBER 2022 CFD2020-1

SHEET DATE
JOB NO.
437 WEST GRAND AVENUE
ESCONDIDO, CALIFORNIA 92025 TELEPHONE: (760)233-2630 SDFA.COM 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 2020-7
1 LEGEND: LOT NUMBER
ANNEXATION ZONE 2020-7 COMMUNITY FACILITIES DISTRICT BOUNDARY 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 ZONE 2020-7 OF COMMUNITY FACILITIES DISTRICT NO. 2020-1 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 BROTHERTON RD

CENTRE CITY PKWY
Scale In Feet
100 0 100 200
2 1
NAP

PREVIOUSLY

ANNEXED AS
ZONE 2020-6 TO
CFD NO. 2020-1
Resolution No. 2022-183
Exhibit "B"

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City of Escondido
March 23, 2020
Community Facilities District No. 2020-1 1
Appendix A

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.

Resolution No. 2022-183
Exhibit "C"

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City of Escondido
March 23, 2020
Community Facilities District No. 2020-1 2
“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. “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-ofway, 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-totime. 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.

Resolution No. 2022-183
Exhibit "C"

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City of Escondido
March 23, 2020
Community Facilities District No. 2020-1 3
“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 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.

Resolution No. 2022-183
Exhibit "C"

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City of Escondido
March 23, 2020
Community Facilities District No. 2020-1 4
“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.

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.

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.

Resolution No. 2022-183
Exhibit "C"

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City of Escondido
March 23, 2020
Community Facilities District No. 2020-1 5
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.
b. Escalation
Each July 1st, 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.

Resolution No. 2022-183
Exhibit "C"

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City of Escondido
March 23, 2020
Community Facilities District No. 2020-1 6
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.

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 Resolution No. 2022-183
Exhibit "C"

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City of Escondido
March 23, 2020
Community Facilities District No. 2020-1 7
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.

Resolution No. 2022-183
Exhibit "C"

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City of Escondido
October 21, 2020
Community Facilities District No. 2020-1 Appendix A - Page 1 of 1 ATTACHMENT 1
FOR COMMUNITY FACILITIES DISTRICT NO. 2020-1

OF THE CITY OF ESCONDIDO (SERVICES)
(ANNEXATION NO. 7 ZONE 2020-7)

MAXIMUM SPECIAL TAXES ASSIGNED
Maximum Special Tax Rates
for Developed Residential Property per Dwelling Unit
Fiscal Year 2022-2023
Zone
Land Use
Category Density
Assessor Parcel
No(s). Unit
Annual Special Tax
Per Unit*
2020-7 3 18 to less than 30 DU/Acre 238-130-35-00
238-130-36-00 DU $778.01
Increases in the Maximum Special Tax:
*On each July 1, commencing July 1, 2021, the Maximum Special Tax shall be increased by the greater of the annual percentage change in the Index or 2%.

Resolution No. 2022.183
Exhibit C

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Resolution No. 2022-183
Exhibit “D”

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EXHIBIT D

LEGAL DESCRIPTION
APN and ownership information for CWC Escondido 113 LLC, a Delaware limited liability company:
238-130-35
238-130-36
TOTAL ACREAGE: 1.44 acres.
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STAFF REPORT
December 7, 2022
File Number 0800-10

SUBJECT

FINAL MAPS UNDER CONSIDERATION FOR APPROVAL

DEPARTMENT
Development Services Department, Engineering Services

BACKGROUND
The following Final Maps have been filed for approval by the City Engineer in accordance with Ordinance 2022-02:

Tract SUB17-0007 at North Avenue and Laurashawn Lane: North Avenue Estates Project Tract SUB18-0011 at 555 E. Valley Parkway: Palomar Heights Project No materials necessary for this item.
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Item9.

STAFF REPORT
December 7, 2022
File Number 0600-10; A-3437

SUBJECT

AWARD OF CONTRACT FOR CONSTRUCTION OF THE ESCONDIDO CREEK TRAIL FENCING PROJECT

DEPARTMENT
Development Services, Engineering Services

RECOMMENDATION
Request that the City Council adopt Resolution No. 2022-165, awarding the construction contract to Lightning Fence Co., Inc., determined to be the lowest responsible and responsive bidder, and authorizing the Mayor, on behalf of the City, to execute a Public Improvement Agreement in the amount of $324,400 for the Escondido Creek Trail Fencing Project (“Project”) and authorizing the Mayor to execute a change order in the amount of $404,500 for the construction of Phase 2 of the Project contingent on the programming of additional funding.

Staff Recommendation: Approval (Andrew Firestine, Development Services Director and Julie Procopio, City Engineer)
Presenter: Jonathan Schauble, Principal Engineer

FISCAL ANALYSIS
Community Development Block Grant (“CDBG”) funds in the amount of $635,000 have been allocated for this Project. Bids received were higher than anticipated due to increases in construction material and labor costs. Additional funding in the amount of $250,000 is required to complete the second phase of the Project and cover anticipated Project costs, including construction contingency, inspection, and testing of materials.

Staff is exploring alternative funding sources and is working with Housing and Neighborhood Division staff to identify CDBG funds for the project. No funding decisions have been made; however, Housing and Neighborhood staff expects to return to City Council in January 2023 to request a substantial amendment to close out completed CDBG projects and consider directing additional funding to this Project.

BACKGROUND
The Project will replace the existing chain-link fencing along the Escondido Creek Trail with a new six-foot black ornamental wrought iron perimeter fence. Phase 1 of the Project will improve the fencing along the north and south sides of the flood control channel between Ash Street and N. Rose Street. Phase 2 of the Project would improve the fencing along the channel between N. Rose Street and Midway Drive. The new 119
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fencing will improve the appearance, maintainability, and security of the Escondido Creek Trail, a key recreational amenity in the area.

On October 20, 2022, five sealed bids were received in response to the advertised request for bids for the Project. The confirmed totals for the total base and additive alternate bid items are listed below:

Lightning Fence Co., Inc. $728,900.00
Red Hawk Services Inc. $1,070,477.90
GEM Industrial, Inc. $1,201,700.00
Alvand Construction Inc. $1,213,000.00
Tri-Group Construction, Inc $1,650,000.00
Staff has evaluated the bids and determined that the bid submitted by Lightning Fence Co., Inc. is the lowest responsive and responsible bid. Staff recommends awarding a construction contract in the amount of $324,400.00 to Lightning Fence Co., Inc. for Phase 1 of this Project.

Breaking up the Project into two phases (base bid and alternative bid) provides staff with the flexibility to move forward with the award of Phase 1 work within the available budget that will support meeting annual expenditure requirements of CDBG funding. Staff requests authorization for the Mayor to execute a change order for the construction of Phase 2 work, in the amount of $404,500, contingent upon programming of additional funding to complete this work. The City Council will be asked to consider additional programming of funding for the Project in January 2023.

RESOLUTIONS
a. Resolution No. 2022-165
b. Resolution No. 2022-165 – Exhibit A – Public Improvement Agreement 120
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RESOLUTION NO. 2022-165

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR

TO EXECUTE, ON BEHALF OF THE CITY, A PUBLIC

IMPROVEMENT AGREEMENT FOR THE ESCONDIDO

CREEK TRAIL FENCING PROJECT
WHEREAS the City Council has allocated funding in the 2018 and 2021 Annual Action Plans for Community Development Block Grant (“CDBG”) funds for the Escondido Creek Trail Fencing Project (“Project”); and
WHEREAS, a notice inviting bids for said improvements was duly published; and WHEREAS, pursuant to said notice, five sealed bids for the project were opened and evaluated on October 20, 2022; and
WHEREAS, Lightning Fence Co., Inc. was determined to be the lowest responsive and responsible bidder; and
WHEREAS, this City Council desires at this time and deems it to be in the best public interest to authorize a Public Improvement Agreement with Lightning Fence Co., Inc. in the amount of $324,400.

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

1. That the above recitations are true.

2. That the City Council authorizes the Mayor to execute, on behalf of the City, a Public Improvement Agreement with Lightning Fence Co., Inc. in a substantially similar form to that which is attached and incorporated to this Resolution as Exhibit “A,” and subject to final approval as to form by the City Attorney.
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3. That the City Council authorize the Mayor to execute a change order to the agreement with Lighting Fence Co., Inc. in the amount of $404,500.00 for the improvement of additional fencing between Rose Street and Midway Drive contingent on the programming of additional funding.

4. That the City Manager retains the authority to approve change orders up to 10% of the authorized contract total of $728,900.
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CITY OF ESCONDIDO

Escondido, CA 92025
Attn: Dan Flud
858-829-1125
("CONTRACTOR").
(The CITY and CONTRACTOR each may be referred to herein as a “Party” and collectively as the “Parties.”)
WHEREAS, the Parties desire to enter into this Agreement for the performance of work relating to the Creek Trail Fencing Project (“Project”), occurring on property located at various locations along the Escondido Creek between Ash Street and Midway Drive (“Property”), as further described herein.

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

1. Project Documents. The Notice Inviting Sealed Bids/Notice to Contractors, Instructions to Bidders, Bid Form, Designation of Subcontractors, Workers' Compensation Certificate, Change Orders, Shop Drawing Transmittals, Information Required of CONTRACTOR, Non-collusion Affidavit, Insurance Certificates, Guarantees, General Conditions, Supplementary General Conditions, Special Conditions, Plans, Drawings, Specifications, the Agreement, and all modifications, addenda, and amendments thereto (“Project Documents”) are incorporated herein by this reference as if fully set forth herein. The Project Documents are complementary, and what is called for by any one shall be as binding as if called for by all.

Resolution No. 2022-165
Exhibit "A"

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3. Compensation. In exchange for CONTRACTOR’s completion of the Work, the CITY shall pay, and CONTRACTOR shall accept in full, an amount not to exceed the sum of $324,400.00 (“Contract Price”). CONTRACTOR shall be compensated only for performance of the Work described in this Agreement. No compensation shall be provided for any other work or services without the CITY’s prior written consent.

4. Term and Time of Performance. CONTRACTOR shall commence work within one week from the CITY's notice to proceed. CONTRACTOR shall diligently perform and complete the Work with professional quality and technical accuracy within Forty (40) working days from the date specified in the notice to proceed (“Completion Date”). Extension of terms or time of performance shall be subject to the CITY’s sole discretion.

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equipment, and vehicles moving under CONTRACTOR’s control and engaged in the Work, with limits no less than $3,000,000 combined single limit per accident for bodily injury and property damage.
(3) Workers’ Compensation. Workers' Compensation as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease.
(4) If CONTRACTOR maintains broader coverage and/or higher limits than the minimums otherwise required by this Agreement, the CITY requires and shall be entitled to the broader coverage and/or the higher limits maintained by CONTRACTOR. b. Each insurance policy required by this Agreement must be acceptable to the City Attorney and shall meet the following requirements:
(1) Compliance with General Condition Requirements. Insurance coverage shall comply with and meet all requirements set forth in Article 5.2 of General Conditions

(2) Acceptability of Insurers. Insurance coverage must be provided by an insurer authorized to conduct business in the state of California with a current A.M. Best’s rating of no less than A-:VII, or as approved by the CITY.
(3) Additional Insured Status. Both the Commercial General Liability and the Automobile Liability policies must name the CITY (including its officials, officers, agents, employees, and volunteers) specifically as an additional insured under the policy on a separate endorsement page. The Commercial General Liability additional insured endorsement shall be at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38, and CG 20 37 if a later edition is used. The Automobile Liability additional insured endorsement shall be at least as broad as ISO Form CA 20 01.
(4) Primary Coverage. CONTRACTOR’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 with respect to the CITY, its officials, officers, agents, employees, and volunteers. Any insurance or self-insurance maintained by the CITY, its officials, officers, agents, employees, or volunteers shall be in excess of CONTRACTOR’s insurance and shall not contribute with it. (5) Notice of Cancellation. Each insurance policy shall provide that coverage shall not be canceled, except with prior written notice to the CITY. (6) Subcontractors. If applicable, CONTRACTOR shall require and verify that all subcontractors maintain insurance meeting all the requirements stated within this Agreement, and CONTRACTOR shall ensure that the CITY (including its officials, officers, agents, employees, and volunteers) is an additional insured on any insurance required from a subcontractor.
(7) Waiver of Subrogation. CONTRACTOR hereby grants to the CITY a waiver of any right to subrogation that any insurer of CONTRACTOR may acquire against the CITY by virtue of the payment of any loss under such insurance. CONTRACTOR agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this subsection shall apply regardless of whether or not the CITY has received a waiver of subrogation endorsement from the insurer. Any Workers’ Compensation policy required by this Agreement shall be endorsed with a waiver of subrogation in favor of the Resolution No. 2022-165
Exhibit "A"

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CITY for all work performed by the CONTRACTOR, its agents, representatives, employees and subcontractors.
(8) Self-Insurance. CONTRACTOR may, with the CITY’s prior written consent, fulfill some or all of the insurance requirements contained in this Agreement under a plan of selfinsurance. CONTRACTOR shall only be permitted to utilize such self-insurance if, in the opinion of the CITY, CONTRACTOR’s (i) net worth and (ii) reserves for payment of claims of liability against CONTRACTOR are sufficient to adequately compensate for the lack of other insurance coverage required by this Agreement. CONTRACTOR’s utilization of self-insurance shall not in any way limit the liabilities assumed by CONTRACTOR pursuant to this Agreement.
(9) Self-Insured Retentions. Self-insured retentions must be declared to and approved by the CITY.
c. Verification of Coverage. At the time CONTRACTOR executes this Agreement, CONTRACTOR shall provide the CITY with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting the insurance coverage required by this Agreement), which shall meet all requirements under this Agreement. The CITY reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by this Agreement, at any time. d. Special Risks or Circumstances. The CITY reserves the right, at any point during the term of this Agreement, to modify the insurance requirements in this Agreement, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
e. No Limitation of Obligations. The insurance requirements within this Agreement, including the types and limits of insurance coverage CONTRACTOR must maintain, and any approval of such insurance by the CITY, are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONTRACTOR pursuant to this Agreement, including but not limited to any provisions within this Agreement concerning indemnification. f. Compliance. Failure to comply with any of the insurance requirements in this Agreement, including but not limited to a lapse in any required insurance coverage during the term of this Agreement, shall be a material breach of this Agreement. Compliance by CONTRACTOR with the requirement to carry insurance and furnish certificates, policies, Additional Insured Endorsement and Declarations Page evidencing the same shall not relieve the CONTRACTOR from liability assumed under any provision of this Agreement, including, without limitation, the obligation to defend and indemnify the CTY and the City Engineer. In the event that CONTRACTOR fails to comply with any insurance requirement set forth in this Agreement, in addition to any other remedies the CITY may have, the CITY may, at its sole option, (i) immediately terminate this Agreement; or (ii) order CONTRACTOR to stop Work under this Agreement and/or withhold any payment that becomes due to CONTRACTOR until CONTRACTOR demonstrates compliance with the insurance requirements in this Agreement.

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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”), of every nature caused by, arising out of, or in connection with CONTRACTOR’s (including CONTRACTOR’s agents, employees, and subcontractors, if any) Work pursuant to this Agreement or its failure to comply with any of its obligations contained herein, except where caused by the active negligence, sole negligence, or willful misconduct of the CITY. b. CONTRACTOR (including CONTRACTOR’s agents, employees, and subcontractors, if any) shall indemnify, defend, and hold harmless the CITY, its officials, officers, agents, employees, and volunteers from and against any and all Claims caused by, arising under, or resulting from any violation, or claim of violation, of the San Diego Municipal Storm Water Permit (Order No.

8. Bonds.
a. CONTRACTOR shall furnish and deliver to the CITY, simultaneously with the execution of this Agreement, the following surety bonds:
(1) Faithful Performance Bond. CONTRACTOR shall furnish to the CITY a surety bond in an amount equal to the Contract Price as security for faithful performance of this Agreement.
(2) Labor and Materials Bond. CONTRACTOR shall furnish to the CITY a surety bond in an amount equal to the Contract Price as security for payment to persons performing labor and furnishing materials in connection with the Project. b. All bonds furnished to the CITY pursuant to this Agreement shall be in the form set forth herein and approved by the City Attorney.
c. All bonds shall be executed by sureties that are named in the current list of "Companies Holding Certificates of Authority as Acceptable Sureties on Federal bonds and as Acceptable Reinsuring Companies" as published in Circular 570 (amended) by the Audit Staff, Bureau of Government Financial Operations, U.S. Treasury Department. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. d. If the surety on any bond furnished by the CONTRACTOR is declared bankrupt or becomes insolvent or its right to do business is terminated in any state where any part of the Work is located, the CONTRACTOR shall, within seven days thereafter, substitute another bond and surety, which must be acceptable to the CITY. No portion of the Work shall be performed without bonds, in a form and issued by a surety acceptable to the City. If one or more of such bonds shall, at any time, not be in full force and effect, CONTRACTOR shall immediately cease performance of the Work until CONTRACTOR is in full compliance with the bonding requirements of this Agreement and California law. All delays and costs incurred or resulting from such occurrence shall be to the exclusive account of CONTRACTOR. Failure of the CONTRACTOR to promptly cure any failure to have the necessary bonds in full force and effect shall be grounds for immediate termination of this Agreement.

Resolution No. 2022-165
Exhibit "A"

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e. All bonds shall be obtained from surety companies that are duly licensed or authorized in the State of California. Such surety companies shall also meet any additional requirements and qualifications as may be provided in the Supplementary General Conditions.

13. Attorney’s Fees and Costs. In any action to enforce the terms and conditions of this Agreement, the prevailing Party shall be entitled to reasonable attorney’s fees and costs.

14. Independent Contractor. CONTRACTOR is an independent contractor, and no agency or employment relationship is created by the execution of this Agreement.

Resolution No. 2022-165
Exhibit "A"

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15. Amendment. This Agreement shall not be amended except in a writing signed by the CITY and CONTRACTOR, and pursuant to action of the Escondido City Council.

20. Provisions Cumulative. The foregoing provisions are cumulative to, in addition to, and not in limitation of any other rights or remedies available to the CITY.

21. Business License. CONTRACTOR shall obtain a City of Escondido Business License prior to execution of this Agreement and shall maintain such Business License throughout the term of this Agreement.

23. Prevailing Wages and Department of Industrial Relations Compliance. Pursuant to California Labor Code section 1770 et seq., CONTRACTOR agrees that a prevailing rate and scale of wages, in accordance with applicable laws, shall be paid in performing this Agreement.

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requirements of Division 2, Part 7, Chapter 1 of the California Labor Code. Neither the CITY, nor any elected or appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of CONTRACTOR to comply with this section.

25. Effective Date. Unless a different 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. (SIGNATURE PAGE FOLLOWS)
Resolution No. 2022-165
Exhibit "A"

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

CITY OF ESCONDIDO
Date: __________________ ___________________________________ Paul McNamara, Mayor
LIGHTNING FENCE COMPANY, INC.

Date: __________________ ___________________________________ Signature
___________________________________
Name & Title (please print)
___________________________________
Contractor's License No.
___________________________________
Tax ID/Social Security No.

APPROVED AS TO FORM:

OFFICE OF THE CITY ATTORNEY
MICHAEL R. MCGUINNESS, City Attorney
BY: __________________________
THE CITY OF ESCONDIDO DOES NOT DISCRIMINATE AGAINST QUALIFIED PERSONS WITH DISABILITIES.

Resolution No. 2022-165
Exhibit "A"

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STAFF REPORT
December 7, 2022
File Number 0600-10; A-3438

SUBJECT

AWARD OF CONTRACT FOR SHORT-TERM RENTAL ADMINISTRATION

DEPARTMENT
Development Services

RECOMMENDATION
Request the City Council adopt Resolution No. 2022-173, authorizing the Mayor to execute, on behalf of the City, a Consulting Agreement with Granicus, LLC, a Minnesota Limited Liability Company, for threeyears with two (2) options to extend the Consulting Agreement for one (1) year per extension, and approve a budget adjustment request in the amount of $42,000 for professional services for the Shortterm Rental Administration Project (“Project”).

Staff Recommendation: Approval (Andrew Firestine, Director of Development Services, Jennifer Schoeneck, Deputy Director of Economic Development, and Christina Holmes, Director of Finance) Presenter: Andrew Firestine, Director of Development Services

FISCAL ANALYSIS
The Project is expected to cost $35,307.50 in the first year, including one-time costs for consulting and public outreach together with the prorated subscription fees for the program administration following the development and adoption of an ordinance implementing a short-term rental program. Costs for each successive year of subscription services for continued program administration are $21,153 per year. Once implemented, short-term rentals will be subject to a 10 percent transient occupancy tax (TOT), which is expected to more than fully cover the ongoing costs of the Professional Services Agreement.

PREVIOUS ACTION
None.

BACKGROUND
Short-term rentals are generally defined as the rental of a structure, or a portion thereof, for occupancy, dwelling, lodging, or sleeping purposes for less than 30 consecutive calendar days in a residential zoning district, including single-family residences, condominiums, townhomes, multi-family, and other similar residential structures.
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It is currently estimated that there are upwards of 130 existing short-term rentals within the City of Escondido. The City has neither a regulatory framework to control how short-term rentals are operated within the community, including their enforcement, or a process by which to collect TOT from short-term rentals.

On September 6, 2022, a Request for Proposals (RFP) was advertised for short-term rental administration.

The scope of services within the RFP was structured to include all aspects of the development and implementation of a short-term rental program, ranging from the development of an ordinance and conducting a public engagement process to establish how the City regulates short-term rentals all the way through the registration of short-term rental units that leads to the remittance of all required taxes and fees. The scope of services also set an expectation that the contractor would conduct an ongoing assessment of the City’s short-term rentals for compliance with City regulations, continue to manage the payment of all taxes and fees, and assist the City with code enforcement activities, including the provision of a 24-hour hotline for residents to call with any complaints regarding short-term rental properties.

A total of five (5) responses to the RFP were received. An RFP review committee consisting of economic development, finance, and development services staff reviewed and scored each proposal and conducted two (2) interviews. Granicus, LLC was identified by the review committee as the most responsive bid to the RFP.

The Granicus, LLC proposal specifically includes consulting on the development of a short-term rental ordinance and a public engagement tool, EngagementHQ, that can assist the City in leading a public participation process that captures community input from not only the existing short-term rental operators but residents and community members who are affected by short-term rentals. The EngagementHQ tool is listed as an option in their proposal and is included in the Consulting Agreement.

The methodology contained in the balance of their proposal is responsive to the City’s needs and is led with a technology driven solution for operators to obtain and manage their permits and tax reporting, including the ability for operators to manage their permit through a mobile device. The solution allows operators to pay their TOT in person, by mail, or through a secure payment portal.

Granicus, LLC also proposes to monitor short-term rentals for ongoing compliance, including systematic outreach to those operating without a permit, and contains tools to monitor rental activity and can identify audit candidates who are under-reporting on taxes or are exceeding occupancy regulations. Their monitoring includes the collection of documentation that may be needed in any enforcement action.

The proposal also includes a 24/7 hotline to allow neighbors to report and resolve non-emergency problems with short-term rental properties. The hotline can be structured to contact the emergency contact for a short-term rental by text and phone to resolve an issue in real-time. These reports are documented with a recording of the phone call and all supporting documentation, including photos, video, and/or audio recordings for potential enforcement action. 133
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The overall timeline for the development and implementation of a short-term rental program is largely dependent on the initial steps to prepare an ordinance and to conduct a public engagement process.

There are ordinances that the City of Escondido can model but it should be tailored to those specific issues and concerns that exist within the local community. Currently, it is anticipated that this part of the process will take 2 to 3 months to complete. The balance of the project – registering short-term rentals, collecting TOT, and administering the program – will take roughly 3 to 4 months.

As a matter of additional background information, a guide from the National League of Cities on shortterm rental regulations is included as Attachment “2” to this Staff Report, which provides a number of recommendations that the City may want to consider as it prepares a short-term rental program. The guide includes suggestions on the development of regulations that are tied to policy goals and enforcement and fine structures that are proportional to the economic gains that violators can realize from not following the rules, including escalating fines for repeat violators up to the revocation of a permit or license. While it is not a definitive guide to everything that the City of Escondido may encounter as it works to develop a short-term rental program, it is a solid resource.

RESOLUTIONS
a. Resolution No. 2022-173
b. Resolution No. 2022-173 – Exhibit A – Consulting Agreement

ATTACHMENTS
a. Budget Adjustment Request
b. National League of Cities Short-Term Rental Regulations: A Guide for Local Governments 134
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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: 11/16/2022 For Finance Use Only
Log #
Fiscal Year
Department: Development Services
Division: Planning
Project/Budget Manager: Andrew Firestine
Name Extension
Council Date (if applicable): 11/16/2022
(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 Planning Department -
Professional Services
5131-001-200 $42,000
Transient Occupancy Tax
Revenue
4032-001 42,000
Explanation of Request:

Approval of Resolution 2022-173 authorizing a consulting agreement with Granicus LLC for the implementation and administration of a Short-Term Rental Program

APPROVALS
Department Head Date City Manager Date
Finance Date City Clerk Date
Distribution (after approval): Original: Finance
DocuSign Envelope ID: 8111E3A7-829D-4311-A316-010C276E7551 11/7/2022
11/7/2022
Attachment "1"
135
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NATIONAL
LEAGUE

OF CITIES
Short-Term
Rental Regulations:

A GUIDE FOR LOCAL GOVERNMENTS
Attachment "2"
136
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NATIONAL
LEAGUE

OF CITIES
About the National League of Cities
The National League of Cities (NLC) is the voice
of America’s cities, towns and villages,
representing more than 200 million people. NLC
works to strengthen local leadership, influence
federal policy and drive innovative solutions.

NLC’s Center for City Solutions provides research
and analysis on key topics and trends important
to cities, creative solutions to improve the quality
of life in communities, inspiration and ideas for
local officials to use in tackling tough issues, and
opportunities for city leaders to connect with
peers, share experiences and learn about
innovative approaches in cities.
2022 ©National League of Cities. All Rights Reserved.

All photo credited to Getty Images, 2022.

Authors
Tina Lee, Senior Research Specialist,
National League of Cities
Lauren Lowery, Director, Housing & Community
Development, National League of Cities
Lena Geraghty, Director, Sustainability
and Innovation, National League of Cities
Kyle Funk, Program Specialist,
National League of Cities
Samantha Carr, Housing & Community
Development Intern, National League of Cities
Acknowledgments
The authors wish to recognize Matthew Disler of
the Harvard Berkman Klein Center for Internet &
Society for his contributions to this report and
Kristin Szakos for copy editing. The authors also
wish to thank the city staff and elected officials
who agreed to be interviewed to inform this
report, including those from Fayetteville, AR,
San Diego, CA, Charleston, SC, Lake Placid,
NY, Columbus, OH, and Henderson, NV.

Contents
4 Foreword
7 Introduction
8 Defining Short-Term Rentals
8 What is a Short-Term Rental?
9 What Can Communities Regulate?
10 The Issue
12 Recommendations: Short-Term Rental Regulations
14 Understand the Landscape
14 Gather Data
15 Engage a Diverse Group of Stakeholders
18 Identify Policy Goal(s)
20 Develop and Pass Regulations
20 Apply a Racial Equity Lens
21 Pass Regulations Early
21 Craft Simple Regulations
24 Institute a Permit Requirement
25 Determine Fines and Fees
27 Establish a Clear Taxing Model
28 Negotiate an Agreement with Platforms
30 Enforcement
30 Dedicate Resources to Enforcement
32 Ensure Extensive Communication and Marketing
33 Move Registration and Administration Systems Online
35 Revisit and Adapt
35 Establish a Feedback Loop
37 Conclusion
38 Appendix
38 Voluntary Collection Agreements (VCAs)
40 Endnotes

INTERACTIVE
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4 Short-Term Rental Regulations: A Guide for Local Governments Foreword
I
N RECENT YEARS, short-term rentals have increased in cities, towns and villages across the United States. As a result of this growth, local leaders have had to grapple with competing benefits and challenges – in particular, how to ensure a healthy stock of affordable housing and how to support local tourism and economic development opportunities. One of the top priorities for city leaders today is to ensure that residents and visitors to their communities have access to safe, affordable lodging.

These competing priorities make passing regulations difficult, which is why it’s not surprising that short-term rentals have become a common topic of discussion among our members at the National League of Cities (NLC). Members faced with these challenges often ask us: “What tools are available to assist me with regulating short-term rentals in my community?” This persistent question led NLC to research short-term rental regulations in cities across the country and ultimately produce Short-Term Rental Regulations: A Guide for Local Governments. Based on an analysis of 60 short-term rental ordinances, this action guide lays out a detailed overview of best practices for cities to develop and pass short-term rental regulations in their communities.

While no two municipalities face the same opportunities and challenges when it comes to regulating short-term rentals, this research provides insight into how to chart a path forward successfully. This guide recommends local leaders create and enforce firm and fair regulations by focusing on clear policy objectives, centering racial equity as a critical component in their planning and actively engaging with relevant stakeholders throughout the process.

Short-term rentals can open a swath of opportunity for homeowners looking to make additional dollars, while also providing economic development opportunities in neighborhoods that may not generally see high levels of tourism. By bringing community and industry leaders together, local leaders can create policies that work for both – and maximize the potential value of short-term rentals for hosts, guests and neighbors alike, all while protecting the affordability of neighborhoods.

While short-term rentals are a prominent issue today, this challenge is not a new one for local leaders. There are often difficulties that come with maximizing economic growth while protecting community interests. Mayors, councilmembers and other local elected officials are well-equipped to help bring stakeholders together to understand and navigate potential trade-offs.

Local leaders have an incredibly important role to play in capitalizing on the benefits of short-term rentals and minimizing potential negative impacts. I hope this resource will help your community make decisions about short-term rentals that are best for your residents.

Clarence E. Anthony

CEO AND EXECUTIVE DIRECTOR
National League of Cities
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NATIONAL LEAGUE OF CITIES 7
Introduction
THE RAPID GROWTH of short-term rentals in cities, towns and villages across the U.S. has caused much controversy. From contentious City Hall meetings where residents advocate for more stringent or more relaxed regulations to lengthy and expensive legal battles between cities and short-term rental platforms, cities can get caught in the cross-hairs of a complicated policy issue. Short-term rentals present no shortage of challenges for local leaders, as they can affect housing availability and affordability, local tourism and economic development, neighborhood wellbeing, and health and safety. However, many cities have learned important lessons in navigating these complex issues and offer some best practices for others to learn from.

Regulation of short-term rentals has proven to be an important and effective tool in making short-term rentals work for all parts of the community.

Regulations that define what short-term rentals are and have appropriate mechanisms in place should intervention be necessary have helped city leaders steer the conversation toward solutions and meeting community needs. The purpose of regulating short-term rentals is not to be overly punitive or to prohibit them, but to put safeguards and appropriate enforcement mechanisms in place for when problems arise.

This Action Guide will not settle debates about the specific impacts of shortterm rentals on each community. Instead, it aims to equip local leaders with appropriate information and tools to adopt or amend ordinances that serve their community best: policies that are equitable; that protect municipal interests such as health and safety and housing affordability; that preserve the residential quality of neighborhoods; and that enable responsible and eligible residents to earn some additional income.

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NATIONAL LEAGUE OF CITIES 9 9
What Can Communities Regulate?
Regulations vary, depending on the needs of the locality issuing them. In a community where vacant properties are a problem, regulations might focus on upkeep and oversight. In a community where housing stock is scarce, regulations might be put in place to limit the number of properties lost to residential rentals.

Generally, however, regulations include some combination of the following provisions:

PROVISIONS DETAILS

LOCATION

AND USE
Geographic limits: Cities can decide to limit the availability of STRs in specific areas of cities, such as particular residential areas or neighborhoods with specific historic character.

Commercial-residential distinctions: Cities can establish different rules for properties in residential and commercial areas to account for the different interests of communities in each of these areas.

TIMING Primary residence requirements: Cities can require that the STR is occupied by the host for most of the year, and/or that the rental is in or part of the owner’s primary residence.

Day limits: Cities can include provisions capping the number of days per year that hosts can rent their STR.

MANNER

OF RENTAL
Registration and licensing: Cities can require hosts to register their properties with the city and can require rental platforms (e.g., Airbnb, Vrbo, etc.) to ensure that properties listed on their sites are properly registered.

Taxes: Cities can require that hosts pay transient occupancy taxes, which are taxes on what guests pay for temporary lodging in the city and are usually collected and remitted by hotels, motels and similar businesses. Cities can also work with STR platforms and other third-party providers to minimize the burden of tax remittance.

Occupancy limits: Cities can limit the number of guests per stay, usually by establishing a guests-per-bedroom or per-property cap.

Health and safety regulations: Cities can require STRs to have fire safety equipment and carbon monoxide detectors; display emergency information for guests; adopt measures to maintain a sanitary residence; and adopt plans for emergencies, among other requirements.

Noise and event regulations: Cities can restrict the use of STRs for large gatherings and events, and they may explicitly require that guests comply with existing noise, trash and parking ordinances.

Defining
Short-Term
Rentals
What is a Short-Term Rental?
In general, short-term rental (STR) refers to an activity in which one party, the “host,” agrees to rent out all or part of a home to another party, the “guest,” on a temporary, time-limited basis. The precise legal definition of a short-term rental varies by community. Most short-term rental ordinances include details on the following types of provisions that define short-term rentals for a particular community:

LOCATION AND USE:

Where and how many short-term
rentals are allowed
TIMING:

How long short-term rentals
can be rented for
MANNER OF RENTAL:

Additional requirements for
hosts and guests
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NATIONAL LEAGUE OF CITIES 11
The Issue
Short-term rentals are not a new concept. Companies like Vrbo, HomeAway, Couchsurfing and Craigslist have offered consumers short-term rental options since the late 1990s without much controversy.1 The meteoric growth of the short-term rental industry in the 2010s changed that. Companies like Airbnb, Vrbo, HomeAway and FlipKey grew in popularity while consumer appetite for more original, authentic and local experiences increased, driving demand higher.

As short-term rentals become more accessible to both hosts and users, use skyrocketed over a short period. But the meteoric success of short-term rental platforms has not been welcomed unreservedly. Common complaints are that short-term rentals can drive up local rents, limit the availability of long-term residential rentals, attract an influx of tourists and create excessive noise.2
Local leaders attempting to chart the pathway forward for short-term rentals in their communities must respond to many competing interests, making passing regulations and balancing those interests difficult. Some of these issues that must be considered include:

Housing
The research is divided on whether short-term rentals contribute to the housing crisis. Regardless of whether the exact impact on the housing market is measurable, it is undeniable that many cities in the U.S. face a housing crisis – due to a shortage of affordable housing, steady decline in federal investment in low-income housing, wage growth stagnation, etc. – and that short-term rentals may contribute to housing unaffordability and unavailability.

Tourism
Short-term rentals outside of the typical tourism areas in cities can be a boon to local economies, spreading dollars across the cities in ways that traditional lodging accommodations do not. On the other hand, cities with high tourism rates face a greater share of the negative impacts of short-term rentals in communities. In high-tourism communities, large numbers of whole home rentals can affect neighborhood cohesion, as they may stand empty for weeks at a time or experience high turnover in guests.

Preemption
Preemptive state laws can limit cities’ ability to regulate short-term rentals.

The impacts of preemptive laws can range from a complete inability to regulate, to restrictions on the kinds of regulations that can be imposed.

Public Health and Safety
Poorly regulated and unsupervised short-term rentals can threaten the safety of neighborhoods for residents and guests alike. Party houses have become a significant point of contention in some communities. Guests may ignore or be unaware of noise, trash and parking ordinances.

For myriad reasons — both within and outside of city control — cities may find it difficult to enforce the regulations they do have. Some ordinances are difficult for hosts and residents to understand and difficult for the city to enforce because they are overly complicated or poorly publicized. In other instances, cities may have no systematic way to identify hosts who are not in compliance or to keep track of what properties are being used for short-term rentals, and when. Understanding the most common barriers to effective regulation — unclear rules and lack of data — is key to making sound policy choices. Despite the limitations and challenges that city leaders face, local leaders can pass regulations that effectively balance competing interests, fit community needs, and most critically, are enforceable.

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NATIONAL LEAGUE OF CITIES 13
THE NATIONAL LEAGUE of Cities analyzed 60 short-term rental ordinances to inform this report across 30 indicators, including the legal definition of short-term rentals, regulations and enforcement. At least one city, town or village was selected in each state, with two cities, towns or villages selected for the top ten states by population (California, Texas, Florida, New York, Pennsylvania, Illinois, Ohio, Georgia, North Carolina and Michigan) to ensure that a diversity of local context was represented in the analysis.

The recommendation sections (Understand the Landscape, Develop and Pass Regulations, Enforcement, and Revisit and Adapt) are meant to build off each other and should therefore be executed in chronological order. They are detailed in the section below.

Recommendations:

Short-Term Rental
Regulations
This Action Guide will help local leaders break down
the process of developing a short-term rental ordinance, provide relevant city examples and identify key tips.

The following recommendations are a menu of
policy principles and good practices that cities
should explore when establishing or updating
their regulations, based on research into
short-term rental ordinances and policies
across the country.

UNDERSTAND

THE LANDSCAPE

DEVELOP

AND PASS

REGULATIONS

ENFORCEMENT

REVISIT

AND ADAPT
Gather Data
Engage a Diverse Group of Stakeholders
Identify Policy Goal(s)
Apply a Racial Equity Lens
Pass Regulations Early
Craft Simple Regulations
Institute a Permit Requirement
Determine Fines and Fees
Establish a Clear Taxing Model
Negotiate an Agreement
with Platforms
Dedicate Resources to Enforcement
Ensure Extensive Communication and Marketing
Move Registration and Administration Systems Online
Establish a Feedback Loop
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14 Short-Term Rental Regulations: A Guide for Local Governments NATIONAL LEAGUE OF CITIES 15

UNDERSTAND THE LANDSCAPE
Before passing regulations, understand the local short-term rental landscape. This should involve extensive information gathering and thorough engagement with relevant stakeholders. Be mindful of what issues are associated with short-term rentals in your community to determine the goals your policy should meet.

GATHER DATA
While anecdotes are powerful, they are not a proxy for actual data to estimate the number and location of short-term rentals operating in a community. In some cases, data may be available through third-party platforms such as Inside Airbnb or AirDNA. Knowing approximately how many units may be on the market is critical to understanding the scope of the issue.

KEY DATA POINTS INCLUDE:

How many short-term rentals are operating in your community? What is the breakdown between hosted room rentals vs. whole home rentals? Where are short-term rentals operating in your community? What neighborhoods are most affected?
What is the average daily price of short-term rentals vs. hotels? What is the occupancy rate of short-term rentals vs. hotels? How much revenue are short-term rental properties generating vs. hotels? Additional data sources that can help supplement short-term rental-specific data to develop a comprehensive picture of the local landscape can include tourism, housing and complaint data. Connect with local tourism boards to gather information such as how much money visitors are spending, where visitors are spending their money, where they are staying, where they are spending their time and how long they are staying. Leverage data sources such as the American Community Survey to understand the breakdown in renter vs. homeownership

BULLSEYE-POINTER
rates, vacancy rates and demographic information in different neighborhoods to contextualize short-term rentals in the broader housing landscape. Records of noise and nuisance complaints (e.g., through 311 calls or similar complaint or service request software) can also help cities understand where these complaints are filed and what they are.

ENGAGE A DIVERSE GROUP OF STAKEHOLDERS
Engage a network of stakeholders, including but not limited to tenants, landlords/homeowners, hotel and motel industry representatives, neighborhood organizations, housing advocates, tourism agencies and short-term rental platforms. This mix will look different for each city, but identifying relevant stakeholders will be key to understanding the challenges and opportunities each city faces.

Hold virtual or in-person town hall meetings, drop in on various group meetings (e.g., landlord associations, property owner groups, neighborhood associations, etc.) and solicit comments from members of the public to gauge the perceptions of short-term rentals directly from community members. Cities can, for example, work with neighborhood associations to map areas especially strained by shortterm rentals or tourism. Residents have the closest ear to the ground. City leaders should leverage this knowledge to their advantage.

Cities have a lot to gain by partnering with platforms, but the relationship-building process can be contentious at times. These relationships are more likely to be positive when cities come to the discussion table with a clear goal in mind and communicate it with the platforms.

POTENTIAL STAKEHOLDERS INCLUDE:

Motel and lodge union
or association
Hotels or hotel union
or association
Realtor groups
or associations
Restaurant associations
City Council
Local planning groups
and organizations
Existing short-term rental
operators
Platforms (e.g., Airbnb,
Expedia, etc.)
Neighborhood
associations
Housing advocates
Tourism agencies

BULLSEYE-POINTER
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16 Short-Term Rental Regulations: A Guide for Local Governments NATIONAL LEAGUE OF CITIES 17 CITY SPOTLIGHT:

SAN DIEGO, CA
While drafting its short-term rental ordinance, the City of San Diego engaged a wide variety of stakeholders including:

CITY SPOTLIGHT:

FAYETTEVILLE, AR
In 2018, the City of Fayetteville’s Sustainability Department worked with the University of Arkansas’ Public Policy Department to explore short-term rentals.

The students leveraged data sources such as AirDNA to gather the following information:
Active rentals
Average booked properties
Occupancy rate
Average booking rate per night
Average Airbnb private room price (Fayetteville)
Average hotel room price (Fayetteville)
Average Airbnb private room price (Downtown Fayetteville) Average hotel room price (Downtown Fayetteville)3
Based on this information, the students generated maps of short-term rental locations in the Fayetteville area, noting a large concentration of Airbnb rentals in the downtown area. This analysis was presented to city staff and elected officials in December 2018 to inform their discussion on short-term rentals in Fayetteville. Unite Here, a union for motel/lodges
Neighborhood groups
Hotel stakeholders, including the
hotel/motel association
Realtor groups and associations
The restaurant association
City Council
Local planning boards and
organizations
Pre-existing STR operators
Expedia Group and Airbnb
A staff member from the San Diego City Council conducted meetings with the stakeholders. The meeting format and length varied. The city representative sometimes met stakeholders individually or invited them to speak at public meetings.

Those interested in engaging longer-term were invited to a permanent stakeholder group. The stakeholder group continues to provide input on short-term rental regulation implementation.

Compromise was eventually reached, most notably in the form of a memorandum of understanding (MOU) between Unite Here and Expedia Group. Through the MOU, these two major stakeholders with different perspectives agreed to partner to help regulate the short-term rental market. The MOU also laid the foundation for the regulations that the city would push forward when engaging with other stakeholder groups. Following this engagement process, the ordinance was presented to the public, Planning Commission, mayor and Coastal Commission. The city found that putting the time in to build relationships and establish trust between the municipality and short-term rental platforms was essential to the ordinance’s success. Further, going into the process with a clear goal, while being mindful of what compromises could be made, allowed the city to achieve buy-in from a diversity of stakeholders.

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18 Short-Term Rental Regulations: A Guide for Local Governments NATIONAL LEAGUE OF CITIES 19 CITY SPOTLIGHT:

CHARLESTON, SC
The City of Charleston began regulating short-term rentals in 2012, when it adopted regulations that allowed commercially zoned properties to be rented as short-term rentals in the Cannonborough Elliotborough neighborhood. The goal of the regulation was to bring reinvestment into vacant, abandoned and distressed properties in the neighborhood. In subsequent years, the city saw an increase in the number of short-term rental units in Cannonborough Elliotborough and throughout Charleston. With a growing number of short-term rentals and an incoming mayor interested in revisiting short-term rental regulations, the policy moved to the forefront of Charleston’s agenda again.

In 2016, the mayor and City Council began the process of updating short-term rental regulations by appointing a committee of local citizens to study and provide recommendations on short-term rentals. The committee included residents, representatives of the city’s preservation and historical societies, and tourism interests. Over time, a consensus was built around the goal to preserve the historic nature of downtown Charleston and allow short-term rentals to contribute to the local tourism economy, but only in such a way that did not alter the character of the city and negatively affect residents’ quality of life.

Based on this consensus, the city developed a category-based short-term rental permitting system that requires most short-term rentals to be owneroccupied, and details additional requirements for properties located in downtown Charleston or in properties listed with the National Register of Historic Places.

IDENTIFY POLICY GOAL(S)
Develop a clear and concise policy goal for the short-term rental ordinance, driven by the city’s overarching goals and community input. Review strategic city plans (e.g., comprehensive housing plans, 5- and 10-year city visions, master plans) and identify top city priorities that may dovetail with priorities for shortterm rentals. For example, a city may have a broader goal to advance housing affordability and may choose to focus on preserving the stock of affordable housing as a policy goal. Or a city may have the broader goal to attract more tourism and choose to focus its regulations on enabling short-term rentals with appropriate guardrails in place as the tourism industry continues to grow.

Cities should be intentional about setting a goal or priority before drafting regulations. Without a clear “end goal,” cities can pass regulations that may not align with community priorities, and do not have effective mechanisms to accomplish them. By deciding on a policy and community goal, cities can craft a simpler and more targeted ordinance.

Common goals, based on NLC’s analysis of 60 cities, include:
Prevent the loss of
rental housing stock
Slow or prevent the
overgrowth of STRs
Balance the needs
and rights of property
owners and neighbors
Support tourism
in a balanced way
Capture
tax revenue
Preserve the
residential quality
of neighborhoods
Combat
displacement
Ensure health and
safety for guests
and residents
Allow economic
gain for residents

KEY CONSIDERATION
Balance competing expectations. By their nature, short-term rentals can be a contentious issue, with strongly vested interests on all sides. Each stakeholder will have to make concessions from their vision of “ideal” regulations, so helping the community and STR platforms understand that compromise is needed is critical to setting realistic expectations. Having a clear policy goal will also help coalesce stakeholders around the city’s broader vision and help justify policy choices.

BULLSEYE-POINTER
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20 Short-Term Rental Regulations: A Guide for Local Governments NATIONAL LEAGUE OF CITIES 21

DEVELOP AND PASS REGULATIONS
As the short-term rental industry continues to mature, it has become clear that complex regulations are not only cumbersome for hosts and residents of the city but are also unenforceable. Policies with clear goals, fair implementation and mechanisms for enforcement will help everyone.

APPLY A RACIAL EQUITY LENS
One of the most commonly cited benefits of short-term rentals is that they allow hosts to generate extra income from existing assets. While this may be true, hosting is most commonly available to those who own a home.

Homeownership is inseparable from race and inequality in America. According to the latest estimates from the U.S. Census Bureau, the homeownership gap between White and Black households was 30 percent in 2020.4 According to NLC’s ordinance analysis, only 38 percent of cities surveyed specifically allowed tenants to host a short-term rental. Even then, cities that do explicitly state that tenants are allowed to host require them to acquire written consent from their landlords or a have a rental contract that allows them to sublet their unit.

Tenants face a high barrier to host even in the minority of cities that allow them to.

The ability of short-term rentals to democratize the tourism industry is overstated when a majority of Black, Indigenous and People of Color (BIPOC) do not have access to homeownership. Given the divide in homeownership in America, the direct economic benefit of short-term rentals may exacerbate existing inequality. There is also evidence that hosts may discriminate based on race and ethnicity. A 2017 study of Airbnb data found that “applications from guests with distinctively African-American names are 16 percent less likely to be accepted relative to identical guests with distinctively White names.”5 Airbnb has since made moves to fight bias and discrimination, including changing when guest pictures are shown to a host in the booking process.6 The city of Columbus, OH, passed a discrimination clause in its ordinance stipulating that a host shall not decline a potential guest, impose different terms or conditions, or discourage or indicate a preference for or against a guest based on race, gender, sexual orientation, gender identity or expression, color, religion, ancestry, national origin, age, disability, familial status or military status.7

KEY CONSIDERATION
Recognize the role that short-term rentals play in exacerbating housing unaffordability. Consider dedicating some portion of STR permit or tax revenue towards affordable housing funds or homeownership opportunities, or earmarking general fund dollars for similar programs. Boulder, CO stipulates in its ordinance that “after administration expenses are met, any additional funds shall be placed in the city’s affordable housing fund."8

PASS REGULATIONS EARLY
The short-term rental industry is rapidly growing. Given the complexity of the policy and regulatory space, be proactive and establish regulations before short-term rentals have a negative impact on the community. Establishing regulations gives cities the power to intervene when necessary. It is much easier to limit the spread of short-term rentals before they have proliferated than it is to retroactively remove them from the market. Establishing regulations also becomes increasingly controversial as more stakeholders have a vested interest in seeing them maintained. Even cities that have not yet faced the negative impacts of short-term rentals should pass regulations to regulate the STR market before they proliferate.

KEY CONSIDERATION
A common hurdle that cities face is what to do with pre-existing short-term rentals once a new ordinance is passed. In 58 percent of the cities reviewed in the NLC ordinance analysis, cities required existing hosts to comply with regulations or apply for a permit or license. Cities must communicate early and clearly with existing hosts about their responsibilities under a newly passed or revised ordinance to give them time to meet new regulations.

CRAFT SIMPLE REGULATIONS
Craft simple ordinances that are clear about policy goals. This will better equip leaders to engage in conversation with platforms, residents, property owners and other stakeholders invested in the ordinance outcome. Below is a list of common goals found in the ordinance analysis, and key ordinance elements to achieve those goals.

BULLSEYE-POINTER

BULLSEYE-POINTER
38%
of cities
surveyed
specifically
allowed
tenants to
host a shortterm rental.

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22 Short-Term Rental Regulations: A Guide for Local Governments NATIONAL LEAGUE OF CITIES 23 Policy Levers to Pull to Achieve Common Policy Goals

POLICY GOAL POLICY LEVERS

PREVENT THE LOSS

OF RENTAL HOUSING
Prevent long-term rental
properties from being
converted to short-term
rentals.

Adopt a permit requirement and institute a host residency requirement, which should prevent homeowners from renting properties solely as short-term rentals and prevent properties from being purchased for the sole purpose of operating as short-term rentals.

SLOW OR PREVENT THE

OVERGROWTH OF STRS
Prevent residential
neighborhoods from being
“overtaken” by guests
to the detrimental of the
neighborhood and residential
feel of a neighborhood.

Adopt a permit requirement and set a specific quota (number or percentage) on the number of short-term rental permits that will be distributed in a particular geographic area (e.g., neighborhood, census tract, ZIP code, etc.).

COMBAT DISPLACEMENT
The presence of short-term
rentals can be particularly
contentious in certain
neighborhoods (e.g.,
neighborhoods that are
experiencing displacement).

Adopt a permit requirement and set a quota on the number of shortterm rentals that are allowed to operate in a specific zoning district or neighborhood, particularly areas of the city that are at risk of, or are currently experiencing displacement pressure. Beware that such quotas can limit existing low-income homeowners’ ability to earn revenues from their homes. Therefore, consider how to equitably distribute permits.

Consider dedicating some revenue generated from permit fees or taxes to affordable housing or home-ownership programs. Explicitly restrict affordable housing units from being rented out as
short-term rentals.

PRESERVE THE

RESIDENTIAL QUALITY

OF NEIGHBORHOODS
Limit problem properties
such as party houses or
houses with complaints.

Adopt a permit requirement and include a limit to the number of people that can stay in a short-term rental. This limit can be tied to the number of bedrooms in a short-term rental, or a total cap on the number that can stay in any type of property. A common limit that cities institute is two adults per bedroom.

Require that short-term rental hosts provide their guests with a “Good Neighbor Guide” that summarizes all ordinances that guests are required to comply with during their stay (e.g., noise, trash, parking, etc.).

Set restrictions on the number or percentage of short-term rentals that are allowed to operate in a particular neighborhood (or other geographic areas, such as census tract, ZIP code, etc.).

BALANCE THE NEEDS

AND RIGHTS OF PROPERTY

OWNERS AND NEIGHBORS
While lawful hosts have the
right to rent their properties
out, they should not infringe
on the rights of neighbors.

Enable hosts to rent out their
homes while also ensuring
that residents know where
and how to file a complaint.

Adopt a permit requirement and establish a process for revoking permits from properties in violation, such as a “three strikes” rule. If three verified complaints are filed within a certain time, the city can revoke a host’s permit.

Establish a 24/7 hotline that residents can phone to report non-emergencies without calling the local police department or law enforcement. Require short-term rental permit hosts to list a local contact who can be reached should an issue arise.9

POLICY GOAL POLICY LEVERS

ENSURE HEALTH

AND SAFETY OF

GUESTS AND RESIDENTS
Ensure the safety of guests
and residents, including
minimizing public safety
risks and noise and trash
complaints.

Adopt a permit requirement that requires each listing to include a local contact who can be reached at any time. Use this emergency contact if a complaint is filed. Stipulate that if the registered contact is not responsive, the host’s permit risks being terminated.

Institute a permanent residency requirement. City leaders report that most complaints come from non-owner-occupied units. Hosts may be more invested in their property if they, too, call it home.

Require an inspection, or, if the city cannot carry out inspections, stipulate that the city has the right to inspect a property should sufficient suspicion arise that the property is not up to code.

Institute a process for revoking permits from properties in violation, such as a “three strikes” rule. If three verified complaints are filed within a certain time, the city can revoke a host’s permit.

CAPTURING

TAX REVENUE
Ensure that revenue
is being collected.

Adopt a permit requirement that will make it easier to identify whether hosts are complying and paying the appropriate taxes. Use permit and tax revenue to either hire additional staff or a third-party provider to help monitor compliance.

Reach an agreement with platforms that requires them to automatically collect and remit taxes back to the city. Be wary of the transparency of the tax remittance process and ensure that the city’s enforcement powers are not stifled.

SUPPORT TOURISM

IN A BALANCED WAY
Tourism is a key component
to many local economies and
short-term rentals can play
a role in facilitating tourism
without impacting residents
if done in a balanced way.

Adopt a permit requirement and set an annual permit reapplication. Make clear that applications can be denied if regulations change. Adopting a formal permit requirement will not deter hosts from participating, so long as the permitting process is not overly cumbersome. Ensure the permit fees are reasonable and tied to the cost of administering the permit program.

ALLOW FOR ECONOMIC

GAIN FOR RESIDENTS
Short-term rentals can
support wealth building
for community members,
although city leaders must
pay attention to who is
eligible to host.

Adopt a permit requirement. The permit system should be simple and easy to navigate, particularly if the city is trying to encourage more permanent residents to host on a part-time basis. If the administrative burden is too high, few will be willing to put in the effort.

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24 Short-Term Rental Regulations: A Guide for Local Governments NATIONAL LEAGUE OF CITIES 25

INSTITUTE A PERMIT REQUIREMENT
Enforceable short-term rental ordinances require owners who want to host shortterm rentals to acquire a permit before renting. In general, a permit requirement allows local governments to create and maintain a database of units and contact information for properties that are operating as short-term rentals. The information provided in an application is key to enforcing the ordinance, allowing the city to have a point of contact to check in with when a property is not in compliance.10 Without information on who is operating short-term rentals, cities are effectively rendered helpless in enforcing their regulations.

Having an active database of short-term rentals in operation is key to moving from a reactive to a proactive approach to enforcement.

To ensure that hosts are acquiring permits, the city must have a mechanism to check to ensure compliance. Some cities, like San Francisco, have negotiated agreements with platforms that require the platform to put a permit number on the host listing.11 In other cases, cities have hired third-party platforms to aid their enforcement efforts. The City of Nashville, TN, uses Granicus’s Host Compliance, a short-term rental compliance monitoring platform, to support enforcement efforts. According to Nashville officials, the Code Department was struggling to enforce its regulations when they were relying on a complaint-based process. The city was manually identifying STR addresses. With more than 60 active rental websites and private addresses and contact information, it proved to be too herculean an effort to maintain. Host Compliance’s online portal enables the city to identify illegal operators before there is a complaint, moving from reactive to proactive enforcement. Since implementing Host Compliance, Nashville has more than doubled its compliance rate to 91 percent.12

KEY CONSIDERATION
Without a clear and streamlined application or licensing process, applications may backlog. This leads to an unhappy and distrustful community and may encourage illegal rentals to operate while they are in the process of being considered for a permit. In some cases, operators will purposely and continuously file for permits and operate while under consideration.

Always tie the permit to the person, not the parcel. This will allow for natural attrition over time (e.g., someone sells their home, and the new owner must reapply for a short-term rental permit).

BULLSEYE-POINTER

DETERMINE FINES AND FEES
Many cities adopt fine structures to incentivize compliance by short-term rental hosts. According to NLC’s analysis, fines range from $200 a day to $2,000 per violation, which may escalate each day. Beyond deciding the fine structure, cities must have adequate staff and resources to identify hosts who are not in compliance and communicate to hosts how to stay in compliance and avoid violations.

Fines should be proportionate to or more than the economic gains that potential violators can realize from breaking the rules, and should escalate for repeat violators, including the threat of revocation of a permit or license. Host Compliance offers the following fines and fees schedule for cities to consider:

Example Fine Schedule
1st
violation
2nd
violation
3rd
violation
4th
violation
Fine for advertising a property
for short-term rent (online or
offline) without first having
obtained a permit or complying
with local listing requirements
$200
per day
$400
per day
$650
per day
Upon the fourth or subsequent
violation in any twentyfour month period, the local
government may suspend
or revoke any permit. The
suspension or revocation can
Fine for violating any other be appealed.
requirements of the local
government’s short-term rental
regulation
$250
per day
$500
per day
$750
per day
Notes:
a. Any person found to be in violation of this regulation in a civil case brought by a law enforcement agency shall be ordered to reimburse the local government and other participating law enforcement agencies their full investigative costs, pay all backowed taxes, and remit all illegally obtained short-term rental revenue proceeds to the local government. b. Any unpaid fine will be subject to interest from the date on which the fine became due and payable to the local government until the date of payment.
c. The remedies provided for in this fine schedule are in addition to, and not in lieu of, all other legal remedies, criminal or civil, which may be pursued by the local government to address any violation or other public nuisance.

Source: Host Compliance
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26 Short-Term Rental Regulations: A Guide for Local Governments NATIONAL LEAGUE OF CITIES 27 CITY SPOTLIGHT:

LAKE PLACID, NY
The Village of Lake Placid collaborated with its justice court to define a short-term rental fine structure based on other successful cases. Lake Placid’s short-term rental fines range from $350 to $1,000 for the first violation plus the costs that the village has incurred for enforcement (e.g., staff time and attorney fees). Each week that the violation is not remedied constitutes a separate offense. The second violation that occurs within five years will incur a fine of between $1,000 and $3,000. Short-term rental violations can be appealed within 30 days to the joint Town of North Elba/ Village of Lake Placid Short-Term Rental Appeals Board by either the shortterm rental property owner or the complainant.13 In most cases, hosts do not intentionally violate regulations, and disputes are often settled without the host incurring a fine.

ESTABLISH A CLEAR TAXING MODEL
Be mindful that there are multiple ways to capture revenue. In most cases, the owner/host is responsible for remitting taxes back to the city; however, several cities are trying to move the collection burden from hosts to the platforms. According to NLC’s analysis, 82 percent of surveyed cities require the host to remit taxes directly to the city, while just 5 percent require the platform to collect and remit taxes on their behalf.

Cities like Annapolis, MD, and Charleston, SC, require platforms to remit taxes back to the city on behalf of hosts, automatically collecting tax revenue from a booking when it is made. While it may be easier for cities to require platforms to remit taxes, beware that there is some ongoing controversy around whether cities get back all the taxes they are owed. Several cities in South Carolina, including Charleston, are suing platforms, alleging that they are not remitting full taxes.14
In addition to the transient occupancy tax, some city councils may add an additional tax or surcharge on short-term rentals. For example, Chicago, IL, passed a 4 percent surcharge in 2016 and another 2 percent surcharge in 2018.15 The surcharge funds supportive homelessness services and enforcement of the ordinance.16

KEY CONSIDERATION
Be mindful of how difficult it may be for hosts to remit taxes to the city. If a host has to remit taxes directly, consider how to make that process as simple and streamlined as possible. This not only makes it easier for hosts but ensures that the city is capturing more of the tax revenue it is owed. Include clear and concise instructions on how to remit taxes on the city’s webpage and a user-friendly platform to make payments. Consider sending notifications to all short-term rental hosts about upcoming tax payments.

BULLSEYE-POINTER
82%
of cities require the
host to remit taxes
directly to the city,
while 5 percent require
the platform to collect
and remit taxes of
hosts behalf.

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28 Short-Term Rental Regulations: A Guide for Local Governments NATIONAL LEAGUE OF CITIES 29

NEGOTIATE AN AGREEMENT

WITH PLATFORMS
Cities have had varying success in building helpful agreements with platforms. Cities have a lot to gain by partnering with platforms; however, the relationship-building process can be contentious at times. These relationships are more likely to be positive when cities come to the discussion table with a clear goal in mind and communicate it with platforms. Cities may have the opportunity to negotiate agreements with platforms, such as voluntary collection agreements (VCAs) or memorandums of understanding (MOUs).

Voluntary Collection Agreements
A Voluntary Collection Agreement (VCA) typically involves a shortterm rental platform agreeing to collect and remit transient occupancy taxes on behalf of its hosts. Agreements generally allow local governments to audit the platform, rather than the operator, but do not allow local governments to access information that could identify operators outside of the terms of the agreement.

Many short-term rental platforms have agreements with local governments. As of March 2019, Airbnb had more than 350 VCAs with state and local governments in the U.S.17 While VCAs allows local governments to receive a steady stream of transient occupancy taxes, officials in several states have expressed concerns that these agreements allow platforms to remit less to governments than they owe, a problem compounded by VCA provisions that hinder tax authorities’ ability to audit platforms.18 See the Appendix for more information on VCAs.

Memorandum of Understanding
A memorandum of understanding (MOU) typically focuses on issues such as disclosing data, posting property registration numbers and removing illegal listings. Be aware that an MOU can include provisions that limit cities’ enforcement power or create additional duties for cities. For example, in its draft MOU with the City of Denver, Airbnb included provisions that would have made the MOU confidential and require the city to resort to arbitration to resolve disputes. Together, these provisions would have limited transparency and hampered the city’s ability to use the courts for its enforcement actions. Denver rejected the draft.19
MOUs may create additional duties for cities, such as when an MOU requires a platform to take down listings for unregistered properties but places the burden on cities to inform the platform about suspicious properties — a resource-intensive task. Cities may attempt to shift some of these burdens onto the platform. In one settlement with New York City, Airbnb agreed to automatically provide information for certain listings that met specific criteria.20 In the City of Portland, OR’s MOU with Airbnb, the two parties share duties: Airbnb is responsible for regularly reporting data about hosts and properties, and Portland is responsible for using the information it receives to verify that hosts have properly registered.21

KEY CONSIDERATION
Approach negotiated agreements well informed and with a clear policy goal in mind. Because VCAs and MOUs tend to be offered with standard language and provisions that benefit platforms and hinder city oversight efforts, cities should be prepared to analyze the agreements and decide whether and how to negotiate more favorable conditions.

BULLSEYE-POINTER
Voluntary
Collection
Agreement (VCA):

A VCA typically
involves a short-term
rental platform
agreeing to collect
and remit transient
occupancy taxes on
behalf of its hosts.

Memorandum of
Understanding
(MOU): A MOU
typically focuses on
issues such as
disclosing data,
posting property
registration numbers
and removing illegal
listings.

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30 Short-Term Rental Regulations: A Guide for Local Governments NATIONAL LEAGUE OF CITIES 31

ENFORCEMENT
The purpose of regulations should not just be to capture additional revenue but to minimize and mitigate the negative side effects associated with the uncontrolled growth of short-term rentals. Cities need to move away from reactive to proactive enforcement when possible. Effective enforcement is key to an ordinance’s success. Without regulations that clearly define what a short-term rental is, a database of units being operated, and contact information for those units, cities are effectively rendered helpless in enforcing their regulations.

DEDICATE RESOURCES TO ENFORCEMENT
Dedicated resources, time, staff and money are necessary for successful enforcement. Short-term rental regulation enforcement can be revenue neutral or positive for municipalities when license, permit and tax revenue offsets costs.22 In some cases, cities can also leverage existing resources such as 311 service to take in short-term rental complaints.

Some examples of key enforcement components that require dedicated resources include:
Hiring additional code enforcement officers to identify and flag repeat offenders
Hiring a third-party platform to help with data collection and enforcement
Hiring a web developer to create a “one-stop-shop” website for STR hosts and residents
Hiring additional staff to set up and service a complaint hotline Instituting (re)inspections for violating properties
CITY SPOTLIGHT:

COLUMBUS, OH
The most recent ordinance amendment in the City of Columbus allows the licensing department to deny, revoke or suspend a permit if there are three or more emergency calls made on a specific property in the previous 12 months (i.e., “three-call rule”). To help facilitate this system, the city’s technology department created an internal database that connects the 311 service with the city’s computer-aided dispatch software to allow enforcement to search the address on the map and know what type of emergency service was requested. City staff reference this database when an application is made or when a complaint about a property is filed. This allows the city to identify properties that have violated the ordinance or have passed the “three-call rule.”
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32 Short-Term Rental Regulations: A Guide for Local Governments

ENSURE EXTENSIVE COMMUNICATION

AND MARKETING
Transparent and clear communication and marketing are critical to the success of an ordinance. Clear communication will support the ordinance’s success (e.g., hosts, guests and residents know what the rules and regulations are) and is key to preventing community backlash when an ordinance is established or revisited.

Consistent contact with landlord associations and property owner groups allows the city to convey to hosts how to remain in compliance. This may be an opportunity to develop relationships with trusted voices in key groups who can serve as a liaison with the broader community and as a spokesperson for good hosting etiquette.

Regular contact with residents means that cities can convey the best way to file nuisance and safety complaints should there be a violation at a short-term rental. This helps communities feel like they have a trusted partner in the city to ensure community safety.

KEY CONSIDERATION
Consider hiring or assigning specific city staff to be liaisons with the community. Doing so may help establish trust among hosts, residents and the city, making room for more constructive conversations should something go awry. In addition, developing relationships with specific community members (e.g., hosts or residents) can help broaden the city’s reach into the community. For example, hosts who have good relationships with the city can promote good hosting etiquette in the community.

BULLSEYE-POINTER

MOVE REGISTRATION AND

ADMINISTRATION SYSTEMS ONLINE
To the extent possible, cities should limit the administrative burden on city staff and platform users. Moving registration or licensing systems online (while keeping the paper application option open) makes the process more seamless for hosts and less cumbersome for city staff who process those applications.

Beyond moving the registration or licensing system online, consider launching a centralized, accessible and easy-to-use webpage with all relevant shortterm rental information. One common complaint that cities receive is that short-term rental regulations are difficult to understand. In most cases, it is not that the regulations themselves are too complex, but that regulations are not transparent and explained in an accessible way. Launching a webpage that is regularly updated keeps the community informed. According to a recent 2022 report and survey from Rent Responsibly and the College of Charleston, 49 percent of surveyed short-term rental hosts got information from government websites about local regulations that affect short-term rentals.23 Furthermore, this webpage can serve as a resource for city staff who are not experts on short-term rentals but may be required to liaise with the public about them.

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34 Short-Term Rental Regulations: A Guide for Local Governments NATIONAL LEAGUE OF CITIES 35 CITY SPOTLIGHT:

HENDERSON, NV
The City of Henderson set up an easily navigable webpage with information on short-term rentals, including application materials and answers to frequently asked questions.24 This webpage serves as a “one-stop-shop” for hosts, residents and staff. The short-term rental webpage has the second-highest number of hits on the Henderson website.

On the webpage hosts can:
Find the most up-to-date short-term rental ordinance and state laws that apply to short-term rentals
Register their short-term rental
· Find city contact information to support them through the registration process
· Find clear lists on how to apply and what documents are needed · Find application forms that are easy to download or file online Renew their short-term rental registration
Pay their transient lodging tax and fees
· Find tax forms that are easy to download
On the webpage residents can:
Find relevant short-term rental regulations, including the city ordinance and state laws that apply to short-term rentals
Locate the complaint phone hotline to report any illegal short-term rental or to file noise, trash, parking, occupancy or other nuisance complaints Access the complaint website to submit a complaint online

REVISIT AND ADAPT
The short-term rental market is consistently in flux, meaning regulations may have to change to meet the market and evolving community needs. Regularly revisit your ordinance to ensure that it still has the right balance of competing expectations and alignment with city goals.

ESTABLISH A FEEDBACK LOOP
Particularly when first passing an ordinance, be intentional about setting metrics of success that align with policy goals. These qualitative and quantitative policy goal-aligned metrics will determine how performance is evaluated. Setting a dedicated evaluation period following the passage of a short-term rental ordinance will allow for better evaluation and help generate ideas of how to improve an ordinance. Make sure the public and the hosts understand that the regulation may change at the end of the evaluation period.

Build in a recurring check-in with relevant stakeholders to determine whether the short-term rental ordinance is meeting the city’s originally stated goal, and if not, what needs to be adjusted. This is where the feedback loop is particularly important. Keep an open line of communication with relevant stakeholders (e.g., landlord associations, property owners, residents, housing advocates, community groups, hotels, tourism agencies, etc.) to better understand how the implementation of the ordinance is playing out.

In Fayetteville, AR, the city authorizes a 20-month sunset clause in its ordinance, allowing city leaders to conduct regular review and reauthorization of the ordinance.25 Some adjustments have been made following these regular review periods, including increasing the occupancy tax rate to better fund the cost of enforcement, adjusting the cap on the number of short-term rentals allowed in the community and requiring a unit inspection.

KEY CONSIDERATION
If there is a recurring evaluation period for the ordinance, tell the community early on. Transparency is key to making sure hosts and residents know that regulations may change in the future. This may limit the potential backlash of changing regulations after passing them.

BULLSEYE-POINTER
Attachment "2"
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NATIONAL LEAGUE OF CITIES 37
Conclusion
SHORT-TERM RENTALS ARE here to stay and, when regulated with care and the proper safeguards in place, can be integrated into the fabric of a community. STRs can enhance tourism, stimulate economic growth in targeted neighborhoods and give residents a way to supplement their income, but can also exacerbate racial inequity, put pressures on affordable housing and disrupt neighborhoods. With proper regulation, cities can enjoy the benefits of STRs and limit their negative impacts.

Regulating short-term rentals is not about limiting their potential, but about enacting the appropriate mechanisms to keep competing priorities and interests balanced. As cities consider regulations to address short-term rentals in their communities, it is important that they act promptly, remain focused on a clear policy objective, consider racial equity, actively engage with relevant stakeholders, develop and enforce clear regulations, and provide continuous review of ordinances. The resources found in this Action Guide can help our communities find the proper balance to effectively support and regulate this growing industry.

Attachment "2"
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38 Short-Term Rental Regulations: A Guide for Local Governments NATIONAL LEAGUE OF CITIES 39 Appendix
Voluntary Collection Agreements (VCAs)

COMMON PROVISIONS THINGS TO WATCH OUT FOR

COLLECTION
AND

REMITTANCE
Platforms agree to collect transient occupancy
taxes from guests and remit the amount
collected to the government taxing authority.

Without this provision, the platform may
refuse to collect the tax, arguing that
hosts are responsible for collection. Even
with the provision, some platforms have
been accused of under delivering taxes
remitted to cities.

REPORTING

AGGREGATE

INFORMATION
The platform agrees “reasonably to report
aggregate information” related to its collection
and remittance of transient occupancy taxes
to the tax authority.

Aggregate information includes the
total amounts of receipts, exemptions,
adjustments and so forth, but does not
include individualized information for specific
properties.

Aggregate information does not allow
cities to gather individualized information
on particular properties.

DETERMINING

LIABILITY FOR
TAXES
The platform agrees to be held legally
responsible for failure to report, collect or
remit the transient occupancy taxes, and the
tax authority agrees not to hold individual
hosts responsible for reporting, collecting or
remitting taxes on their property.

WAVIER OF

LOOK-BACK
The tax authority agrees not to pursue any
actions to recover unpaid taxes that had been
due before the date the agreement went into
effect.

If the city has not yet received payments
from a large proportion of STRs, then
waiving all claims on taxes owed before
the VCA’s implementation will result in
the city potentially forfeiting a significant
amount of tax revenue. On the other
hand, a city may not have the capacity
to go after back taxes, and be mostly
concerned with collection of future taxes,
making waiver of past tax liability a lower
priority.

NOTIFICATION

TO HOSTS

AND RENTERS
The platform agrees to notify hosts
and renters that it will be collecting and
remitting transient occupancy taxes for their
transactions.

COMMON PROVISIONS THINGS TO WATCH OUT FOR
AUDITING The tax authority agrees to audit the platform on the basis of its tax returns and supporting
documentation, rather than on audits of
individual renters or hosts. Some VCAs also
state that the tax authority cannot audit
individual renters or hosts until it has finished
auditing the platform and a tax issue remains
unresolved.

All transaction and tax data reviewed by a city
tax authority must be anonymized. If the city
suspects wrongdoing on the part of a specific
host, it must first audit the anonymous
data, then pick out suspicious transactions,
and then finally obtain a subpoena to get
identifiable data from the platform.

The tax authority agrees to limit the number
of times it will audit the platform (e.g., to only
audit the platform once every two years, and
to only audit transactions conducted over a
12-month stretch.)
This may limit the tax authority’s access
to data and ability to audit individual
hosts and affect city efforts to enforce
home-sharing laws. Cities such as Culver
City, CA, have negotiated alternative
provisions ensuring that they can
continue to audit individual hosts if they
receive information about the property’s
violations from another source.26
Anonymized data may mean that cities
can only use aggregate information,
which prevents cities from investigating
individual cases of violation. For example,
Snowmass, CO, states that it will audit
“on an anonymous numbered account
basis,” suggesting that disaggregation
is not required.27 Cities can also suggest
alternative kinds of privacy protection
that allow for individualized reports, such
as pseudonymizing information.

VCAs typically provide that all
information about hosts and guests will
remain anonymous unless the city has
completed an audit of the platform and
served the platform with a subpoena or
similar legal process. Cities may want to
negotiate changes to this provision to
allow them to ensure that properties are
registered. For example, if cities have
already passed ordinances requiring
registration, their audits might request
information about the registration
number.

Cities can negotiate limits on audit
frequency to allow for more frequent
and tailored enforcement efforts. For
instance, the audit frequency in Pacific
Grove, CA, is once every 36 months;
although this period may still be too long
for many cities to effectively audit homesharing, it does indicate that VCAs’ time provisions can vary.28

Attachment "2"
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40 Short-Term Rental Regulations: A Guide for Local Governments NATIONAL LEAGUE OF CITIES 41 Endnotes
1 The history of short-term rentals (n.d.). Keycafe Blog. https://web.archive.org/ web/20220310191702/https://blog.keycafe.com/the-history-of-short-term-rentals/ 2 Barron, K., Kung, E., & Proserpio, D. (2020, March 4). The effects of home-sharing on house prices and rents: Evidence from Airbnb. Marketing Science, 40(1), 1 – 191. http://dx.doi.org/10.2139/ssrn.3006832 3 Resolution: 172-19 A Resolution to Request That City Staff Study and Develop an Ordinance to Regulate Short-Term Rentals in the City of Fayetteville (2019, July 16). Fayetteville City Code. https://web.archive.org/web/20220310192617/https://www.fayetteville-ar.gov/ DocumentCenter/View/19304/Short-Term-Rentals-Study-SIGNED-RES-172-19 4 U.S. Census Bureau. (n.d.). Quarterly homeownership rates by race and ethnicity of householder for the United States: 1994-2020. https://www.census.gov/housing/hvs/data/charts/fig08.pdf 5 Edelman, B., Luca, M., & Svirsky D. (2017). Racial discrimination in the sharing economy: Evidence from a field experiment. American Economic Journal:

Applied Economics, 9(2), 1–22. https://doi.org/10.1257/app.20160213 6 Airbnb. (2019, September 2019). An update on Airbnb’s work to fight discrimination. https://news.airbnb.com/an-update-on-airbnbs-work-to-fight-discrimination/ 7 Chapter 598 Hotel/Motel and Short-Term Rental Operations (2018, January 30). Columbus City Codes. https://library.municode.com/oh/columbus/codes/ code_of_ordinances?nodeId=TIT5BURELICO_CH598HOMOSHRMREOP 8 Chapter 15 - Short-Term Rental Tax: Legislative Intent (2015, September 1). City of Boulder, Colorado Charter and Revised Code. https://library.municode.com/co/boulder/ codes/municipal_code?nodeId=TIT3RETA_CH15SHRMRETA_3-15-6--3-15-12RE 9 Binzer, U. (n.d.). A practical guide to effectively regulating short-term rentals on the local government level. Host Compliance. https://web.archive.org/web/20220317135940/https:// www.cityofsantacruz.com/home/showpublisheddocument/57754/636177355568470000 10 Binzer, U. (n.d.). Home-sharing & short-term rentals regulations FAQs. Granicus. https://granicus.com/pdfs/Home-Sharing-Short-Term-Rentals-FAQ.pdf 11 San Francisco’s registration process: Frequently asked questions. (n.d.). Airbnb. https://www. airbnb.com/help/article/1849/san-franciscos-registration-process-frequently-asked-questions 12 Nashville, Tennessee: How the codes department achieves 90%+ compliance with Host Compliance. (n.d.). Granicus. https://granicus.com/how-the-codesdepartment-achieves-90-compliance-with-host-compliance/ 13 A Local Law “Amending the Village of Lake Placid/Town of North Elba Land Use Code to Add Regulations Pertaining to Short-Term Rentals (2020). Village of Lake Placid/Town of North Elba Land Use Code. http://www.northelba.org/files/TownLocalLawSubmissiontoNYSDOS.pdf 14 Brown, A. (2021, July 1). SC cities sue Airbnb and other short-term rental companies for not paying local taxes. The Post and Courier. https://www.postandcourier.com/ business/real_estate/sc-cities-sue-airbnb-and-other-short-term-rental-companies-fornot-paying-local-taxes/article_f44f0f60-9bb9-11eb-a4b5-636eb8976c0f.html 15 Amendment of Municipal Code Section 3-24-030 Regarding Surcharge Associated with Vacation Rentals and Shared Housing Units (2018, June 27). Municipal Code of Chicago. https://www.civicfed.org/sites/default/files/o2018-4988.pdf 16 Reuters, T. (2016, November 3). Chicago passes short-term rental ordinance. Hospitality Lawyer. https://hospitalitylawyer.com/chicago-passes-short-term-rental-ordinance/ 17 Martineau, P. (2019, March 20). Inside Airbnb’s ‘guerrilla war’ against local governments. Wired. https://www.wired.com/story/inside-airbnbs-guerrilla-war-against-local-governments/ 18 Bucks, R. D. (2017, March). Airbnb agreements with state and local tax agencies.

A formula for undermining tax fairness, transparency and the rule of law. https:// www.ahla.com/sites/default/files/Airbnb_Tax_Agreement_Report_0.pdf 19 Swanson, C. (2020, February 14). Frustrated Denver officials reject deal with Airbnb. The Denver Post. https://www.denverpost.com/2020/02/14/denver-airbnb-agreement 20 Martineau, P. (2019, May 24). Airbnb and New York City reach a truce on home-sharing data.

Wired. https://www.wired.com/story/airbnb-new-york-city-reach-truce-on-home-sharing-data/ 21 Templeton, A. (2019, September 4). Portland reaches rental data sharing agreement with Airbnb. Oregon Public Broadcasting. https://www.opb.org/ news/article/portland-airbnb-reaches-rental-data-sharing-agreement/ 22 Binzer, U. (n.d.). Home-sharing & short-term rentals regulations FAQs. Granicus. https://granicus.com/pdfs/Home-Sharing-Short-Term-Rentals-FAQ.pdf 23 Rent Responsibly & College of Charleston. (2022, January). 2022 report state of the short-term rental community. https://www.rentresponsibly.org/wp-content/ uploads/2022/01/2022-State-of-the-STR-Community-Report-January-2022.pdf 24 City of Henderson, NV. (n.d.). Short-term vacation rentals. https://www.cityofhenderson.com/ government/departments/community-development-and-services/short-term-vacation-rentals 25 Short-Term Regulations (2021, April 20). Fayetteville City Code. https://www.fayettevillear.gov/DocumentCenter/View/23281/Ordinance-6427-Short-Term-Rental 26 Voluntary Collection Agreement for City of Culver City, California, Transient Occupancy Tax (2018, September 25). https://www.culvercity.org/files/assets/public/documents/ city-manager/short-term-rentals/vca-agreement-with-airbnb_1.pdf 27 Voluntary Collection Agreement for Town of Snowmass Village Sales and Lodging Taxes (2016, November 30) http://nwccog.org/wp-content/ uploads/2018/07/AIRBNB-Voluntary-Collection-Agreement.pdf 28 Mayberry, C. (2017, October 19). Pacific Grove’s new short-term rental policy includes agreement with Airbnb. Monterey Herald. https://www.montereyherald.com/2017/10/19/ pacific-groves-new-short-term-rental-policy-includes-agreement-with-airbnb/ Attachment "2"
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Attachment "2"
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Item11.

RESOLUTION NO. 2022-173

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR TO

EXECUTE, ON BEHALF OF THE CITY, A CONSULTING

AGREEMENT FOR THE SHORT-TERM RENTAL

ADMINISTRATION PROJECT WITH GRANICUS, LLC
WHEREAS, the City of Escondido (“City”) desires to engage the services of a consultant to provide support in the implementation and ongoing administration of a short-term vacation rental (“STVR”) project for three years with options to extend up to an additional two years; and WHEREAS, the City issued a request for proposal for professional support services; and WHEREAS, proposals from four firms were opened on October 3, 2022; and WHEREAS, the evaluation process determined that the proposal of Granicus, LLC is in the best interests of the City; and
WHEREAS, the Director of Development Services has recommended the execution of the Agreement with Granicus, LLC, for the City’s short-term rental administration project; and WHEREAS, this City Council desires at this time and deems it to be in the best public interest to approve said Agreement in an amount not to exceed $35,307.50 in the first year and $21,153 each year thereafter.

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 accepts the recommendation of the Director of Development Services.
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Item11.

3. That the City Council hereby authorizes the Mayor to execute, on behalf of the City, the Consulting Agreement with Granicus, LLC for the City’s STVR project, which is attached hereto as Exhibit “A” and is incorporated by this reference, subject to final approval as to form by the City Attorney’s Office. 159
Item11.

Consulting Agreement (v1) - 1 - CAO: 9/17/2021

CITY OF ESCONDIDO

CONSULTING AGREEMENT
This Consulting Agreement (“Agreement”) is made and entered into as of this _____ day of _______________, 2022 (“Effective Date”),
Between: CITY OF ESCONDIDO
a California municipal corporation
201 N. Broadway
Escondido, CA 92025
Attn: Andrew Firestine
760-839-4556
("CITY")
And: Granicus
A LLC-P partnership
408 Saint Peter Street, Suite 600
St. Paul, MN 55102
Attn: Contracts, [email protected]
800-314-0147
("CONSULTANT").
(The CITY and CONSULTANT each may be referred to herein as a “Party” and collectively as the “Parties.”)
WHEREAS, the CITY has determined that it is in the CITY’s best interest to retain the professional services of a consultant to provide professional support services in the implementation and ongoing administration of short-term vacation rental (“STVR”) administration services; WHEREAS, CONSULTANT is considered competent to perform the necessary professional services for the CITY; and
WHEREAS, the CITY and CONSULTANT desire to enter into this Agreement for the performance of the Services described herein.

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

1. Description of Services. CONSULTANT shall furnish all of the Services described in the Scope of Work, which is attached to this Agreement as Attachment “A” and incorporated herein by this reference (“Services”).

Resolution No. 2022-173
Exhibit "A"

Page 1 of 56 ends

Escondido City CouncilDecember 7, 2022

Escondido City Council
December 7, 2022