Agenda packet — Escondido City Council, November 1, 2023 (part 1 of 2)

CITY of ESCONDIDO
Council Meeting Agenda
WEDNESDAY, NOVEMBER 01, 2023
4:00 PM - Closed Session (Parkview Conference Room)
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
Dane White

DEPUTY MAYOR
Joe Garcia (District 2)

COUNCILMEMBERS
Consuelo Martinez (District 1)
Christian 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, November 01, 2023

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, November 01, 2023

CLOSED SESSION
4:00 PM

CALL TO ORDER

1. Roll Call: C. Garcia, J. Garcia, Martinez, Morasco, White

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

CLOSED SESSION

I. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6)

a. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Escondido Police Officers’ Association Sworn Personnel Bargaining Unit b. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Escondido Police Officers’ Association Non-Sworn Personnel Bargaining Unit
c. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Escondido Firefighters’ Association Safety Personnel and Non-safety Personnel Bargaining Unit
d. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Escondido City Employees’ Association Supervisory Bargaining Unit e. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Maintenance and Operations Bargaining Unit and Administrative / Clerical / Engineering Bargaining Unit,
Teamsters Local 911
f. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Police Management Association (Unrecognized) Bargaining Unit

3 Wednesday, November 01, 2023

II. CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION (Government Code §54956.9(d)(1))

a. Justin Miller v. City of Escondido; AdminSure, Inc.

WCAB No: ADJ15664263; ADJ15664181

III. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8)

a. Property: 272 Via Rancho Pkwy, Escondido (North County Mall) b. Agency Negotiator: Sean McGlynn, City Manager, or designee c. Negotiating Parties: Steerpoint Capital and affiliates d. Under Negotiation: Price and Terms of Ground Lease

IV. CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION (Government Code § 54956.9(d)(2) and (e)(3))

a. Claim of Escondido North, LLC re: Ash Street Subdivision Fee Protest

ADJOURNMENT

4 Wednesday, November 01, 2023

REGULAR SESSION
5:00 PM Regular Session
Mobilehome Rent Review Board

MOMENT OF REFLECTION
City Council agendas allow an opportunity for a moment of silence and reflection at the beginning of the meeting to be led by the City Clerk. The City does not endorse, sponsor or sanction any particular religion and any remarks made are to allow all individuals to personally reflect, contemplate, pray, or meditate as they deem appropriate.

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

CALL TO ORDER
Roll Call: C. Garcia, J. Garcia, Martinez, Morasco, White

PRESENTATION
First Aqueduct Structures Rehabilitation Project - San Diego County Water Authority

CLOSED SESSION REPORT

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

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

5 Wednesday, November 01, 2023

2. APPROVAL OF WARRANT REGISTER (COUNCIL) -
Request the City Council approve the City Council and Housing Successor Agency warrant numbers:
 377995 – 378217 dated October 18, 2023
Staff Recommendation: Approval (Finance Department: Christina Holmes)

3. APPROVAL OF MINUTES: Regular meeting of October 18, 2023

4. WAIVER OF READING OF ORDINANCES AND RESOLUTIONS –

5. STATE OF CALIFORNIA OPIOID SETTLEMENT FUNDS
Request the City Council adopt Resolution No. 2023-142 authorizing the Mayor to execute, on behalf of the City, the Public Services Agreement with Escondido COMPACT to provide opioid abuse education, prevention, and intervention services; authorizing the Chief of Police to accept annual Opioid Settlement Funds from the State of California; and approving budget adjustments needed to spend settlement funds.

Staff Recommendation: Approval (Police Department: Edward Varso, Chief of Police) Presenter: Edward Varso
a) Resolution No. 2023-142

PUBLIC HEARINGS

6. LONG-FORM MOBILE HOME RENT REVIEW BOARD HEARING FOR EASTWOOD MEADOWS MOBILEHOME PARK (CASE/FILE NO. 0697-20-10336)
Request the City Council, serving as the Mobilehome Rent Review Board, consider the Long-form rent increase application submitted by Eastwood Meadows Mobilehome Park (“Applicant”) as well as the Eastwood Meadows Long-Form Rent Increase Analysis and recommendation provided by RSG; approve an increase based on the expert analysis provided by RSG, and if approved, adopt Rent Review Board Resolution No. RRB 2023-145.

Staff Recommendation: Approval (Development Services Department: Chris McKinney, Deputy City Manager/Interim Director of Development Services)
Presenter: Danielle Lopez, Interim Housing and Neighborhood Services Manager a) Resolution RRB No. 2023-145

6 Wednesday, November 01, 2023

7. TOW COMPANY APPEALS HEARING
Request the City Council approve Resolution Nos. 2023-138 and 2023-139 denying the appeals of Quality East County Inc./Quality Towing East Quality Towing (“Quality Towing”) and Tow and Transport Inc./Roadway Towing & Recovery (“Roadway Towing”) challenging their non-selection for a City towing contract.

Staff Recommendation: Approval (Police Department: Edward Varso, Chief of Police) Presenter: Edward Varso, Chief of Police
a) Resolution No. 2023-138
b) Resolution No. 2023-139

CURRENT BUSINESS

8. APPOINTMENT OF AD HOC SUBCOMMITTEE TO ADDRESS THE CITY'S ON-GOING STRUCTURAL DEFICIT Request the City Council appoint an ad-hoc subcommittee to address City’s on-going structural deficit.

Staff Recommendation: Approval (City Clerk’s Office: Zack Beck, City Clerk) Presenter: Zack Beck

WORKSHOP

9. TRANSPORTATION PRIMER
Request the City Council hold a workshop to discuss transportation in preparation for upcoming local and regional planning efforts.

Staff Recommendation: Receive and File (Development Services Department: Chris McKinney, Interim Development Services Director/ Deputy City Manager and Julie Procopio, City Engineer) Presenters: Chris McKinney and Julie Procopio

FUTURE AGENDA

10. 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) 7 Wednesday, November 01, 2023

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, November 15, 2023 4:00 & 5:00 PM Regular Meeting, Council Chambers Wednesday, December 06, 2023 4:00 & 5:00 PM Regular Meeting, Council Chambers

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

8 Consent Item No. 1 November 01, 2023

A F F I D A V I T S

I T E M

P O S T I N G – NONE

9 Item1.

STAFF REPORT

November 01, 2023
File Number 0400-40

SUBJECT

APPROVAL OF WARRANT REGISTER (COUNCIL)

DEPARTMENT
Finance

RECOMMENDATION
Request approval for City Council and Housing Successor Agency warrant numbers:
377995 – 378217 dated October 18, 2023
Staff Recommendation: Approval (Finance Department: Christina Holmes)

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

October 12, 2023 – October 18, 2023 is $4,395,067.16

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.

10 Item2.

October 18, 2023 Escondido City Council Minutes Page 1 of 6

CLOSED SESSION
4:00 PM

CALL TO ORDER

1. Roll Call: C. Garcia, J. Garcia, Martinez, Morasco, White

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 discuss ing or taking action on such items, but the matter may be referred to the City Manager/staff or scheduled on a subsequent agenda. Speakers are limited to only one opportunity to address the Council under Oral Communications.

CLOSED SESSION

I. CONFERENCE WITH LABOR NEGOTIATORS (Government Code § 54957.6)

a. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Escondido Police Officers' Association Sworn Personnel Bargaining Unit

b. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Escondido Police Officers' Association Non-Sworn Personnel Bargaining Unit

c. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Escondido Firefighters’ Association Safety and Non-safety Bargaining Unit

d. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Escondido City Employees’ Association Supervisory Bargaining Unit

e. Agency Representative: Sean McGlynn, City Manager, or designee Employee Organization: Maintenance and Operations Bargaining Unit and Administrative/Clerical/Engineering Bargaining Unit, Teamsters Local 911 11 Item3.

October 18, 2023 Escondido City Council Minutes Page 2 of 6

ADJOURNMENT
Mayor White adjourned the meeting at 4:10 p.m.

______________________________ _______________________________

MAYOR CITY CLERK

12 Item3.

October 18, 2023 Escondido City Council Minutes Page 3 of 6

REGULAR SESSION
5:00 PM Regular Session

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

CALL TO ORDER
Roll Call: C. Garcia, J. Garcia, Martinez, Morasco, White

CLOSED SESSION REPORT

ORAL COMMUNICATIONS
Jonathan Espino – Informed the City Council about the Original Boxing Foundation.

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

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

2. APPROVAL OF WARRANT REGISTER (COUNCIL)
Request the City Council approve the City Council and Housing Successor Agency warrant numbers:
 377002 – 377217 dated September 13, 2023
 377218 – 377413 dated September 20, 2023
 377414 – 377629 dated September 27, 2023
Staff Recommendation: Approval (Finance Department: Christina Holmes)

3. APPROVAL OF MINUTES: None
13 Item3.

October 18, 2023 Escondido City Council Minutes Page 4 of 6

4. WAIVER OF READING OF ORDINANCES AND RESOLUTIONS

PUBLIC HEARING

5. PROPOSED WATER, WASTEWATER, AND RECYCLED WATER RATE ADJUSTMENTS Request the City Council adopt Resolution No. 2023-131, approving a five-year adjusted water, wastewater, and recycled water rates and fees structure to fund future Utilities maintenance and operations, and capital improvements. (File Number 1320-65) Staff Recommendation: Approval (Utilities Department: Angela Morrow, Interim Director of Utilities)
Presenter: Angela Morrow, Interim Director of Utilities a) Resolution No. 2023-131
Nicolas Lucia – Expressed opposition to the proposed water rate increases.

Sandra Otteson – Expressed opposition to the proposed water rate increases.

Matthew Roxo – Expressed opposition to the proposed water rate increases.

Edward Grangetto – Expressed opposition to the proposed water rate increases.

Robin Rush – Expressed opposition to the proposed water rate increases.

David Drake – Expressed opposition to the proposed water rate increases and expressed frustration at the San Diego County Water Authority’s approach towards water reclamation.

Rick Carey – Expressed opposition to the proposed water rate increases and concern over the San Diego County Water Authority’s management of water.

Kimberly Bilman – Expressed opposition to the proposed water rate increases.

Julie Bern – Expressed opposition to the proposed water rate increases.

Barbara Cope – Expressed opposition to the proposed water rate increases.

Yolanda York – Expressed opposition to the proposed water rate increases.

Lily Yates – Expressed opposition to the proposed water rate increases.

Ana Marie Velasco – Expressed opposition to the proposed water rate increases. 14 Item3.

October 18, 2023 Escondido City Council Minutes Page 5 of 6

George Clark – Expressed opposition to the proposed water rate increases.

Kerrie Benecke – Expressed opposition to the proposed water rate increases.

Maria Elena Malfavion – Expressed opposition to the proposed water rate increases.

Motion to increase water rates by 8% (January 1,2024), 7.5% (January 1, 2025), 7.5% (January 1, 2026), 6.5% (January 1, 2027), 6.5% (January 1 2028) and increase wastewater rates by

3.5% (January 1, 2024), 5% (July 1, 2024), 5% (July 1, 2025), 4% (July 1, 2026), 4% (July 1, 2026): C. Garcia; Second: Martinez; Approved: 4-1 (White – No)

CURRENT BUSINESS

6. AQUATICS FACILITY PROJECT
Request the City Council to review options for an Aquatic Facility and provide direction to staff on design, construction and financing of the project. (File Number 0600-10; A-3424) Staff Recommendation: Provide Direction (City Manager’s Office: Joanna Axelrod, Deputy City Manager)
Presenters: Joanna Axelrod, Deputy City Manager and Christina Holmes, Director of Finance Motion to not move forward with the project at this time: J. Garcia; Second: White; Approved: 5-0

FUTURE AGENDA

7. 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)

October 18, 2023 Escondido City Council Minutes Page 6 of 6

ORAL COMMUNICATIONS
Nancy Burian – Expressed concern over homelessness in Escondido.

ADJOURNMENT
Mayor White adjourned the meeting at 7:05 p.m.

______________________________ _______________________________

MAYOR CITY CLERK
16 Item3.
17 Item4.

STAFF REPORT

November 1, 2023
File Number 0600-10; A-3480

SUBJECT

STATE OF CALIFORNIA OPIOID SETTLEMENT FUNDS

DEPARTMENT

POLICE DEPARTMENT

RECOMMENDATION
Request the City Council adopt Resolution No. 2023-142 authorizing the Mayor to execute, on behalf of the City, the Public Services Agreement with Escondido COMPACT to provide opioid abuse education, prevention, and intervention services; authorizing the Chief of Police to accept annual Opioid Settlement Funds from the State of California; and approving budget adjustments needed to spend settlement funds. Settlement funds will be used to purchase Naloxone and to fund opioid education, prevention, and intervention services.

Staff Recommendation: Approval (Police Department: Edward Varso, Chief of Police) Presenters: Edward Varso, Chief of Police

FISCAL ANALYSIS
This project will have no impact on the General Fund Budget. At this time, the State of California has provided $ 307,795 for the City of Escondido . According to the State, p articipating cities and counties receive funding annually, as determined by the relative National Opioid Settlement Agreements. Payment periods vary by settlement and can last up to 18 years. Pending settlements could affect future funding patterns and future drug intervention program recommendations . In the event that th at unanticipated funding becomes available to expand the currently proposed opioid education, prevention, and intervention services, staff will provide an update to the City Council.

Naloxone purchases will account for up to 20% of the annual settlement funds. These funds will cover all of the City’s Naloxone (Narcan) purchases during the funding period. Opioid abuse education, prevention, and intervention programs will account for approximately 80% of the annual settlement funds, through a Public Service Agreement with Escondido COMPACT, not to exceed $150,000 per year

PREVIOUS ACTION

No previous action.

18 Item5.

BACKGROUND

The State of California has joined national lawsuits against manufacturers, distributors, and other entities responsible for aiding the opioid epidemic. The National Opioids Settlements with pharmaceutical distributors and pharmacies are expected to provide substantial funds for the abatement of the opioid epidemic in California and throughout the United States.

The State has appointed the Department of Health Care Services (DHCS) as the oversight and monitoring entity for funds received through opioid settlements, pursuant to the California State -Subdivision Agreements. The settlement funds allocated to California will be distributed to cities and counties throughout the state. The funds must be utilized towards the opioid related issues, including intervention, prevention and education.

The City of Escondido proposes to use the funding to provide Naloxone (Narcan) to first responders. Public safety personnel will be able to maintain a supply of Narcan in an effort to provide lifesaving medicine for patients suffering from a potential opioid overdose. This product has the ability to prevent death in case of opioid overdose.

The City of Escondido will also use the funding to enha nce opioid drug intervention, prevention and educational programs through substance abuse service provider, Escondido COMPACT. The funds will be passed through the City to Escondido COMPACT to educate the City’s most vulnerable population.

Escondido COMPACT has many years of experie nce with drug related education, intervention a nd prevention programs that serve the community. The programs will be expanded to respond to the opioid crisis.

RESOLUTIONS
A. Resolution No. 2023-142
B. Resolution No. 2023-142 Exhibit “A”

ATTACHMENTS
A. Attachment “1” – Budget Adjustment

19 Item5.

RESOLUTION NO. 2023-142

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, C ALIFORNIA, AUTHORIZING THE MAYOR

TO EXECUTE, ON BEHALF OF THE CITY, A PUBLIC

SERVICES AGREEMENT WITH ESCONDIDO COMPACT

TO PROVIDE OPIOID ABUSE EDUCATION, PREVENTION
AND INTERVENTION SERVICES; AUTHORIZING THE

CHIEF OF POLICE TO ACCEPT ANNUAL OPIOID
SETTLEMENT FUNDS FROM THE STATE OF CALIFORNIA;

AND APPROVING BUDGET ADJUSTMENTS TO SPEND

SETTLEMENT FUNDS

WHEREAS, the City Council authorized the City of Escondido (“City”) to enter into various settlement agreements with drug manufacturers and distributors (“National Opioid Settlement”) to receive funds for the purpose of abating the effects of opioid drugs in the City’s jurisdiction; and WHEREAS, a condition of receiving the National Opioid Settlement funds is the expenditure on specific drug abatement and remediation activities and programs; and WHEREAS, the City desires to reduce opioid drug abuse in the community; and WHEREAS, the Escondido Police Department has designated the National Opioid Settlement funds to address this goal; and
WHEREAS, the National Opioid Settlement funds are made available through the State of California Department of Health Care Services (DHCS); and WHEREAS, an allowable use of the National Opioid Settlement funds includes contracting with entities such as Escondido COMPACT to provide drug remediation and abatement programs and services.

NOW, THEREFORE, BE IT RESOL VED by the City Council of the City of Escondido, California , as follows:
20 Item5.

1. That the above recitations are true.

2. That the City Council authorizes the Mayor to execute, on behalf of the City, the Public Services Agreement with Escondido COMPACT to provide opioid abuse education, prevention, and intervention services, which is attached hereto as Exhibit “A” and incorporated by this reference, subject to final approval as to form by the City Attorney.

3. That the City council authorizes the Chief of Police to accept annual National Opioid Settlement Funds from the State of California and approves budget adjustments needed to spend settlement funds.
21 Item5.

Public Services Agreement (v1) - 1 - CAO: 2/16/2023

CITY OF ESCONDIDO

PUBLIC SERVICES AGREEMENT
This Public Services Agreement (“Agreement”) is made and entered into as of the last signature date set forth below (“Effective Date”),
Between: CITY OF ESCONDIDO
a California municipal corporation
201 N. Broadway
Escondido, CA 92025
Attn: Edward Varso, Chief of Police
760-839-4706
("CITY")
And: THE ESCONDIDO EDUCATION COMPACT
a California nonprofit public benefit corporation
dba ESCONDIDO COMPACT
220 S. Broadway
Escondido, CA 92025
Attn: Patricia Huerta, Executive Director
760-839-4274
("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 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. CONTRACTOR 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”).

2. Compensation. In exchange for CONTRACTOR’s completion of the Services, the CITY shall pay, and CONTRACTOR shall accept in full, an amount not to exceed the sum of $150,000 per fiscal year throughout the term of this Agreement, conditional upon available funding. The total contract price of this Agreement shall not exceeed $750,000. CONTRACTOR shall be compensated only for performance of the Services described in this Agre ement. No compensation shall be provided for any other work or services without the CITY’s prior written consent.This funding is predicated on funding from the State of California Opioid Settlement Funds.

3. Performance. CONTRACTOR shall faithfully perform the Services in a proficient manner, to the Resolution No. 2023-142
Exhibit "A"

Page 1 of 10 ends

22 Item5.

Public Services Agreement (v1) - 2 - CAO: 2/16/2023
satisfaction of the CITY, and in accord with the terms of this Agreement . CONTRACTOR shall be responsible for the professional quality, technical accuracy, timely completion, and coordination of all reports and other information furnished by CONTRACTOR pursuant to this Agreement, except that CONTRACTOR shall not be responsible for the accuracy of information supplied by the CITY.

4. Termination. The Parties may mutually terminate this Agreement through a writing signed by both Parties. The CITY may terminate this Agreement for any reason upon providing CONTRACTOR with 10 days’ advance written notice. CONTRACTOR agrees to cease all work under this Agreement on or before the effective date of any notice of termination. If the CITY terminates this Agreement due to no fault or failure of performance by CONTRACTOR, then CONTRACTOR shall be compensated based on the work satisfactorily performed at the time of such termination. In no event shall CONTRACTOR be entitled to receive more than the amount that would be paid to CONTRACTOR for the full performance of the Services.

5. City Property. All original documents, drawings, electronic media, and other materials prepared by CONTRACTOR pursuant to this Agreement immediately become the exclusive property of the CITY, and shall not be used by CONTRACTOR for any other purpose without the CITY’s prior written consent.

6. Insurance Requirements.
a. CONTRACTOR shall pro cure 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 Services, 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 00 01 covering Commercial General Liability on an “occurrence” basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury, with limits no less than $2,000,000 per occurrence and $4,000,000 general aggregate. (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), with limit s no less than $1,000,000 per accident for bodily injury and property damage, unless waived by the CITY and approved in writing by the CITY’s Risk and Safety Division. (3) Workers’ Compensation. Worker's Compensation as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit s of no less than $1,000,000 per accident for bodily injury or disease.
(4) If CONTRACTOR maintains broader coverage and/ or higher limits th an the minimums otherwise required by this Agreement , the CITY requires and shall be entit led 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) 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-: FSC VII, or as approved by the CITY.
(2) 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 Resolution No. 2023-142
Exhibit "A"

Page 2 of 10 ends

23 Item5.

Public Services Agreement (v1) - 3 - CAO: 2/16/2023
edition is used. The Automobil e Liability endorsement shall be at least as broad as ISO Form CA 20 01.
(3) 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 insuran ce 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. (4) Notice of Cancellation . Each insurance policy shall provide that coverage shall not be canceled, except with prior written notice to the CITY. (5) Subcontractors. If applicable, CONTRACTOR shall require and verify that all subcontractors maintain insurance meeting all the requirements stated in this Agreement, and CONTRACTOR shal l ensure that the CITY (including its officials, officers, agents, employees, and volunteers) is an additional insured on any insurance required from a subcontractor.
(6) 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 nec essary 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.
(7) Self-Insurance. CONTRACTOR may, with the CITY’s prior written consent, fulfill some or all of the i nsurance requirements contained in this Agreement under a plan of self - insurance. 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.
(8) 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 Insu rance 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 in 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 in this Agreement concerning indemnification. f. 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 . In the event that CONTRACTOR fails to comply with any such insurance requirements in this Agreement, in addition to any other remedies the CITY Resolution No. 2023-142
Exhibit "A"

Page 3 of 10 ends

24 Item5.

Public Services Agreement (v1) - 4 - CAO: 2/16/2023
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 CO NTRACTOR 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 l itigation costs and expenses (collectively, “Claims”), of every nature caused by, arising out of, or in connection with CONTRACTOR’s performance of the Services or its failure to comply with any of its obligations contained in this Agreement, except where caused by the sole negligence or willful misconduct of the CITY. b. CONTRACTOR (including CONTRACTOR’s agents, employees, and subcontractors, if any) shall defend, indemnify, 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.

8. Anti-Assignment Clause. Because the CITY has relied on the particular skills of CONTRACTOR in entering into this Agreement, CONTRACTOR shall not assign, delegate, subcontract, or otherwise transfer any duty or right under this Agreement, including as to any portion of the Services, without the CITY’s prior written consent. Any purported assignment, delegation, subcontract, or other transfer made without the CITY’s consent shall be void and ineffective. Unless CONTRA CTOR assigns this entire Agreement, including all rights and duties herein, to a third party with the CITY’s prior written consent, CONTRACTOR shall be the sole payee under this Agreement. Any and all payments made pursuant to the terms of this Agreement are otherwise not assignable.

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

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

11. Amendment. This Agreement shall not be amended except in a writing signed by the CITY and CONTRACTOR.

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 A greement 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. 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.

Resolution No. 2023-142
Exhibit "A"

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Public Services Agreement (v1) - 5 - CAO: 2/16/2023

14. 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.

15. 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.

16. 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.

17. 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.

18. Notice. Any statements, communications , or notices to be provid ed pursuant to this Agreement shall be sent to the attention of the persons indicated herein, and the CITY and CONTRACTOR shall promptly provide the other Party with notice of any changes to such contact information.

19. 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.

20. Compliance with Laws, Permits, and Licenses. CONTRACTOR shall keep itself info rmed 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 A greement. CONTRACTOR shall obtain any and all permits, licenses, and other authorizations necessary to perform the Services. 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 CONTRA CTOR to comply with this section.

21. Prevailing Wages . If applicable, 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. 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. The preva iling rate and scale to be paid shall be the same as the applicable “General Prevailing Wage Determination” approved by the Department of Industrial Relations as of the Effective Date of this Agreement, which are available online at http://www.dir.ca.gov/oprl/dprewagedetermination.htm and incorporated into this Agreement by this reference . 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.

22. 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 of the Services under th is Agreement, are and will be authorized to perform the Services 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 Services. CONTRACTOR Resolution No. 2023-142
Exhibit "A"

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26 Item5.

Public Services Agreement (v1) - 6 - CAO: 2/16/2023
agrees to comply with the IRCA before commencing any Services, and continuously throughout the performance of the Services and the term of this Agreement.

23. 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.

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

CITY OF ESCONDIDO

Date: __________________ ___________________________________ Dane White, Mayor

THE ESCONDIDO EDUCATION COMPACT

Date: __________________ ___________________________________ Signature

___________________________________
Name & Title (please print)

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. 2023-142
Exhibit "A"

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Public Services Agreement (v1) - 7 - CAO: 2/16/2023
ATTACHMENT “A”
Scope of Work

A. General

THE ESCONDIDO EDUCATION COMPACT, a California nonprofit public benefit corporation, dba Escondido COMPACT (“Contractor”) will provide the City of Escondido, a California municipal corporation (“City”) with opioid drug prevention services.

Contractor is a unique nonprofit public benefit corporation designed to help at risk youth and community members . Contractor has been promoting youth/student success and career education since 1989. Over the years, Contractor has grown and with the support of the Board of Directors and community partners has expanded its programming with the ongoing f ocus of servicing at -risk youth and families. Contractor partners with the City, the Chamber of Commerce, various Escondido School Districts (K-12), local businesses, County of San Diego, and the juvenile justice system to provide enriching experiences and intervention and prevention services for all youth and familes who access these programs. Contractor fulfills a valuable role in offering services that their partnering organizations do not have the ability to facilitate.

Contractor’s decades long partnerships and proven results afford it a unique ability to provide vital services to the City.

While t he Contractor’s mission is to develop and implement community -wide programs to support education for at risk youth , providing drug prevention, and intervention has been a n ongoing provided service to the community.

B. Location

Contractor will provide services at various locations within the City of Escondido including but not limited to 220 S. Broadway, Escondido, CA 92025 and 1163 N. Centre City P arkway, Escondido, CA 92026.

C. Services

1. Prevent Misuse of Opioids Program

Coaltion for Drug -Free Escondido – is a community coalition facilitated by Contractor that implements evidence-informed prevention, such as reduced social access and physical access, stigma reduction—including staffing, educational campaigns, support for people in treatment or recovery, or training in evidence -informed implementation, including the Strate gic Prevention Framework developed by the U.S. Substance Abuse and Mental Health Services Administration (“SAMHSA”). The Coalition for a Drug-Free Escondido (“Coalition”) will:

a. Support efforts to discourage or prevent misuse of opioids through evidence -based or evidence-informed programs or strategies.
b. Facililtate c orrective advertising or affirmative public education campaigns based on evidence.
c. Create a public education relating to drug disposal. d. Engage non-profits and faith-based communities as systems to support prevention. e. Provide evidence-based prevention programs in schools or evidence -informed school and community education programs and campaigns for students, families, school employees that have demonstrated effectiveness in preventing drug mis use and in preventing the uptake and use of opioids.

Resolution No. 2023-142
Exhibit "A"

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28 Item5.

Public Services Agreement (v1) - 8 - CAO: 2/16/2023
i. Programs will include evidence-based curriculum created by the Coalition, influenced by curriculum from Florida State Universities, Center for the Study, and Promotion of Communities, Families, and Child ren, as well as Health and Opioid Prevention Education (“HOPE”) from Wright State University’s Kinesiology and Health Department. The curriculum will be implemented and presented by a Licensed Substance Use Prevention Counselor (Community Educator). The programs will be presented to middle and high school students and parents in the Escondido Union School District, Escondido Union High School District, and other Escondido schools as requested by the City.
ii. By the end of each program lesson, participants will be able to understand what opioids are, identify what opioid misuse is, and how it affects an individual’s emotions, thoughts, actions, and brain. Participants will also explore the connections between stress and its impact on thoughts, emotions, and behaviors and learn how to identify stressors in their lives, along with recognizing how their well -being is impacted.
iii. The programs aim to train the educators to continue to answer questions and guide students on the topic of Opioid Use Disorder. The Program Manager and Community Educator will continue to leverage their vast network of school staff (parent liaisons, health technicians, health class teachers, social workers, AVID teachers, and principals/other administrative staff) to reach the county’s goal of providing opioid education to all students each year.
f. Facilitate corrective advertising or affirmative public education campaigns based on evidence.
i. Work on posters, flyers and other advertising materials to distribute at presentations, schools, and community events.
ii. Staff will also provide media training to youth leaders in the coalition to help them create a campaign directed at youth.
g. Create a public education campaign related to drug disposal. i. Promote and participate in the biannual prescription drug disposal events in Escondido by partnering with Escondido Police Department and the DEA. ii. Create public education campaign to inform the community about safe storage and disposal of unwanted and unused prescription drugs.
h. Engage non-profits and faith-based communities as systems to support prevention. i. Engage Drug Free Escondido Coalition members by providing training, updates in trends on OUD.
ii. Engage Faith Based Leaders Group hosted by EPD.
iii. As a member of the Community Alliance For Escondido (CAFÉ) COMPACT will keep the membership informed on the latest trends in opioid misuse and abuse and safe storage and disposal efforts.
i. Provide community-based education or intervention services for families, youth, and adolescents at risk for OUD and any co-occurring SUD/MH conditions. i. Host community meetings and forums on OUD and safe storage and disposal of prescription drugs.
ii. Host tables or booths at health fairs and other community events to supply resources and education to the community regarding OUD and safe storage and disposal of prescription drugs.
j. Provide or partner with evidence-informed programs or curricula to address mental h ealth needs of young people who may be at risk of misusing opioids or other drugs, including emotional modulation and resilience skills.
k. Supprt greater access to mental health services and supports for young people, inclding services and supports provided by school nurses, behavioral health workers or other school staff, to address mental health needs in young people that (when not properly addressed) increase the risk of opioid or another drug misuse.

Resolution No. 2023-142
Exhibit "A"

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Public Services Agreement (v1) - 9 - CAO: 2/16/2023

Staff

1. Program Manager – As of the Effective Date of this Agreeme nt, Contractor has a Program Manager on staff.

2. Community Educator – Pursuant to this Agreement, Contractor shall hire a Community Educator to carry out services as described herein. A job description for the Community Educator position is attached to this Scope of Work as Exhibit 1 and incorporated herein by this reference.

D. Scheduling

Inquiries relating to this Agreement, including coordination with City staff as may be needed, may be directed to Captain Kevin Toth at 760-839-4487 or [email protected]. Work shall be performed between the hours of 8 a.m. and 5:30 p. m., Monday through Friday , unless otherwise directed. Further instructions will be provided upon scheduling.

E. Contract Price and Payment Terms

The total contract price of this Agreement shall not exceed $750,000. Contractor shall not be paid more than $150,000 per fiscal year throughout the term of this Agreement , and is dependent upon the availability of funding through the Opioid Settlement Program. The contract price includes all labor related to Contractor staff time spent on opioid prevention and intervention program operations approved by the City’s Chief of Police. Services will be billed as services are performed. Payment will be made after services have been performed and within 30 days of receipt of an invoice for those services.

F. Term

The term of this Agreement shall be from the Effective Date of the Agreement through June 30, 2028.

G. Other

Contractor acknowledges that the term of this Agreement may extend over multiple City fiscal years, and that work and compensation under this Agreement is contingent on the funding made available through the State of California’s Opioid Settlement funding to the City of Escondido .

This Contract may be terminated at the end of the fiscal year for which sufficient funding is not appropriated and authorized. The City is not obligated to pay Contractor for any amounts not duly appropriated and authorized by City Council.

Resolution No. 2023-142
Exhibit "A"

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30 Item5.

Opioid Settlement Funding – City of Escondido – EPD Job Description Offeror: Education COMPACT

POSITION: Community Educator (Bi-lingual)
STATUS: Non Exempt
FTE: .75

DESCRIPTION:

Community Organizer demonstrates competency, knowledge and skill related to alcohol, tobacco, opioid and other drug (ATOD) issues, and outreaches t o communities to promote healthy environments, lifestyles and behaviors. Provides expertise in opioid abuse prevention strategies and offers guidance to mobilize and educate people to plan and carry out effect ive public health- based prevention practices.

JOB KNOWLEDGE/EXPERIENCE:

Substance Use Prevention Counselor License required. Two-years’ experience in community organizing among predominately Spanish -speaking low socioeconomic populations , developing, implementing, and evaluating substance abuse prevention programs . F unctional knowledge of environmental public health strategies and public policy processes. Ability to identify, establish and manage relationships with community leaders and cultural groups. Familiarity with recruitment and mobilization of young adults. Conduct and prepare analysis of needs assessments and surveys. Experience in small group and large group facilitation. Knowledge of media advocacy desired. Excellent speaking and writing skills , and must have reliable/insured transportation and CA Drivers License. Pre-employment drug test required.

RESPONSIBILITIES:
• Initiates and supports coordination of community-based efforts in developing the process, knowledge, and skills needed to create and implement alcohol, tobacco, opioid and other drug (ATOD) prevention programs and projects.
• Train Drug Free Community Coalition and key individuals to deliver prevention information and facilitate the transfer of prevention technology and knowledge to groups in which they are involved.
• Provide accurate technical support to community-wide prevention initiatives. • Develop, facilitate, and train youth leaders in community-based opioid, other drugs and alcohol prevention efforts.
• Facilitate a community team approach to reducing individual and environmental risks that influence attitudes and behaviors that lead to ATOD problems. • Ensure active community member participation and decision-making in the prevention planning process.
• Support coordinated efforts to assess needs and analyze resources. • Develop research-based strategies to meet the specialized needs and norms of a group or population.
• Demonstrate cultural competency.
• Organize and model positive working relationships between all facets of the community to build the partnerships necessary to achieve the goals and objectives of the organization and prevention projects.
• Provide effective support and documentation for several community-specific and/or issue- specific prevention projects.
• Perform all other duties, as assigned.

Resolution No. 2023-142
Exhibit "A"

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31 Item5.

BUDGET ADJUSTMENT

REQUEST
Department: Police Department
For Finance Use Only
BA # ____________
Fiscal Year ________
Department Contact: Barbara Marlett
City Council Meeting Date:
(attach staff report) November 1, 2023

EXPLANATION OF REQUEST
Approve Resolution No. 2023-142 and Budget Adjustment to recognize $378,368 in California Opioid Settlement Funds received to date. Projects funds will be utilized per the restrictions defined in the Settlement Agreement - for opioid related issues, including intervention, prevention and education.

BUDGET ADJUSTMENT INFORMATION
Project/Account Description Account Number
Amount of
Increase
Amount of
Decrease
CA Opioid Settlement Funds CAOPSE-450 $378,368

APPROVALS

DEPARTMENT HEAD DATE FINANCE DATE

Attachment "1"
32 Item5.

STAFF REPORT

November 1, 2023
File Number 0697-20

SUBJECT

LONG-FORM MOBILEHOME RENT REVIEW BOARD HE ARING FOR EASTWOOD M EADOWS MOBILEHOME PARK (CASE/FILE # 0697-20-10336)

DEPARTMENT
Community Development Department, Housing and Neighborhood Services Division

RECOMMENDATION
Request the City Council , serving as the Mobilehome Rent Review Board , consider the Long-form rent increase application submitted by Eastwood Meadows Mobilehome Park (“Applicant”) as well as the Eastwood Meadows Long-Form Rent Increase Analysis and recommendation provided by RSG; approve an increase based on the expert analysis provided by RSG, and i f approved, adopt Rent Review Board Resolution No. RRB 2023-145.

Staff Recommendation: Approval (Community Development: Chris McKinney) Presenter: Danielle Lopez, Interim Housing and Neighborhood Services Manager

FISCAL ANALYSIS

Staff time and resources were expended to process the long -form application. Staff reviewed the application, evaluated the mobilehome park for code violations and conducted public outreach with the affected park residents, park manager and owners. Consultant fees were paid for by the mobilehome park. No additional fiscal impact was incurred by the City.

PREVIOUS ACTION
On June 6, 2018 a short-form application was received and approved, based on 75% of inflation between 2015 and 2017 ($17.58 on avg)

BACKGROUND
33 Item6.

At a public hearing, eleven nonexclusive factors are considered: (1) changes in the Consumer Price Index (“CPI”); (2) the rent charged for comparable mobilehome spaces in Escondido; (3) the length of time since the last rent increase; (4) the cost of any capital improvements related to the spaces at issue; (5) changes in property taxes; (6) changes in any rent paid by the park owner for the land; (7) changes in utility charges; (8) changes in operating and maintenance expenses; (9) the need for repairs other than for ordinary wear and tear; (10) the amount and quality of services provided to the affected tenant; and (11) any lawful existing lease. (Escondido Municipal Code section 29 -104(g)). Over time, this application became known as the “Long-form” application.

This is a hearing of an application for a rent increase from Eastwood Meadows Mobile home Park (“Eastwood Meadows” or “Park”). The Board is asked to accept this report and attachments, hear public testimony, and make a determination concerning the rent increase request in accordance with the factors set forth in the Escondido Mobilehome Rent Control Ordinance, Article V of Chapter 29 of the Escondido Municipal Code (the “Ordinance”) and the Mobilehome Rent Review Board Guidelines.

THE RENT INCREASE APPLICATION:

Eastwood Meadows Mobilehome Park (“Park”), is an all-age Park, located at 2550 Eas t Valley Parkway.

The Park has a total of 129 spaces with 1 15 spaces subject to rent control. The Park is requesting an increase for 105 rent-controlled spaces. The Applicant is not requesting a rent increase for the remaining 10 rent-controlled spaces – 9 of which are currently charged rents of $890.00 or more and 1 of which is occupied by a park-owned mobilehome. The Park's amenities include a recreation building with an office, exercise room, and kitchen; a laundry building with coin -operated washing machines and dryers; a car wash area; a swimming pool; and a playground.

Eastwood Meadows Mobilehome Park Submitted a long -form application on September 17, 2021. On August 28, 2023, City staff received the final revised version of the original application. (Attachment “1”) The Park is requesting a rent increase ranging from $12.23 to $200.00 per month. In the Application, the Applicant proposes to increase rents for 105 of the 129 spaces in the Park. The Applicant’s proposed monthly rent increase varies by space and is equal to the lesser of (a) $200.00 or (b) the amount needed to increase the rent to $890.00.

After analysis of the 11 factors to be considered by t he Board in determining just, fair, and reasonable rent increases, pursuant to Section 29 -104(g) of the Ordinance, and based on the Maintenance of Net On June 8, 1988, the Escondido residents voted to approve Proposition K to enact Mobilehome Rent Control in the City of Escondido (“City”). Under Proposition K, if a park owner wants to increase the rent on a mobilehome rent control space, they must file an application with the City and obtain approval from the Mobilehome Park Rent Review Board (“Board”). This Board is an independent body comprised of the City of Escondido Councilmembers.
34 Item6.

Operating Income (“MNOI”) methodology, RSG calculates a just, fair, and reasonable permanent rent increase of $34.48 per month.

In addition to a $34.48 permanent rent increase, RSG determined and that a temporary rent increase is warranted to reimburse the Applicant for $199,430.00 of 2021 capital improvement expenditures related to asphalt resurfacing, sealing, and re-striping. Pursuant to Section 29-104(h) of the Ordinance and Section 8(b) of the Guidelines, any capital improvement expenditure must be amortized based on the expected life of the improvement based on standard depreciation tables used to determine tax deductions. Based on the U.S. Internal Revenue Service (“IRS”) Publication 946, which details how to depreciate property for income tax purposes, RSG determined that an appropriate amortization period for road improvements is 15 years. Additionally , Section 29 -104(h) of the Ordinance states that amortization of the cost of the improvement should include interest. RSG assumed that a reasonable interest rate to apply to the capital improvement expenditures in the Application would be the 30-year fixed interest rate on home mortgages as of the date of the submission of the Original Application on September 17, 2021, which was 2.86%. The total amount of principal and interest owed on $199,430.00 at 2.86% over 15 years is a total of $245,490.96, or $16,36 6.06 per year, which is equal to $10.57 per space per month for 15 years. Note that the calculation accounts for all 129 spaces in the Park even though the Board has the authority to approve rent increases for only the 115 rent-controlled spaces. The Applicant has the right to recover the remaining reimbursable amount from the 14 spaces that are not subject to rent control via the lease agreements that the Applicant has with each of those households. Assuming the Applicant provides the required 90 -day notic e of this capital improvement rent increase on December 1, 2023, the capital improvement rent increase would be collected over the period of March 2024 to February 2039

TIMELINE:

Initially, the Applicant submitted a short -form application to the City in 2021. However, City staff ultimately determined that the Applicant was not eligible for the short-form application process, because rents for several spaces in the Park had been increased beyond the allowable 8% following in -place transfers.

City staff mailed a letter on September 19, 2023, notifying the affected park residents of the application, proposed rent increase, upcoming residential meeting, and public hearing date (Attachment 3).

The Eastwood Meadows Park long-form application was available for review at the park’s office, Housing & Neighborhood Services Division’s counter at City Hall and the City’s website. City staff elected 35 Item6.

to post the application online on the Housing & Neighborhood’s website to promote transparency and remove potential barriers to access.

City staff delivered a notice to residents on October 20, 2023, again informing them of the November 1, 2023 City Council Meeting (Attachment “4”).

EXPERT ANALYSIS:

There have been few long-form hearings in Escondido, as most park owners have taken advantage of the voluntary “short form” process provided in the City’s mobilehome park regulations. For several previous long-form rent increase applications, the City retained Dr. Kenneth Baar to provide an expert analysis of each application pursuant to the criteria set forth i n the Ordinance. To calculate the just, fair, and reasonable rent increases for each of those applications, Dr. Baar used the Maintenance of Net Operating Income (“MNOI”) methodology. In his report for the last long -form application processed by the City for the Sundance Mobilehome Park in 2016, Dr. Baar stated the following about the MNOI methodology:
“Since the mid -1990’s, the Escondido Rent Board has usually used an MNOI standard in order to determine allowable rents and the courts have upheld the use of this type of standard. Under the MNOI standard, park owners have a right to rent increases that cover operating cost increases and provide growth in net operating income indexed by an inflation factor.” Additionally, Dr. Baar states, “While the Escondido ordinance does not set forth a specific fair return standard, the criteria set forth in the Escondido ordinance support the use of an MNOI standard. A prominent commonality among the criteria is that they relate to increases in park operating expenses and inflation (the Consumer Price Index), factors which are central under the MNOI standard.”
For this long-form application, City staff have contracted with RSG, a local redevelopment and community development consulting firm, to provide an expert analysis of the park owner’s application pursuant to the criteria for evaluation of a fair return which are set forth in the Ordinance. For over 40 years, RSG has been a leading redevelopment and community development consulting firm, working with well over 100 cities and counties each year, to build and implement strategies around housing, economic development, real estate, and fiscal health. City staff requested that RSG continue the use of the MNOI methodology to calculate the just, fair, and reasonable rent increase for this Application. A detailed explanation of this methodology and the resulting recommended increase can be found in RSG’s Eastwood Meadows Long - Form Rent Increase Analysis attached (Attachment “5”).

RESIDENT MEETING AND COMMENTS:

Individual notices were sent to each affected resident on September 19, 2023 notifying them of the rent increase application, the resident meeting, scheduled at the Park’s clubhouse on October 9, 2023, and the hearing date. Code Compliance staff was present to answer any questions at the meeting and conducted the lighting inspection after. Sixty-Nine residents, Park management, and City staff attended the resident 36 Item6.

meeting. The application, recommendation, and long-form hearing procedures were discussed with the residents in attendance. No resident representative was identified. No code issues were reported during the resident meeting. However, several residents expressed concerns over security, road conditions from the current SDG&E meter installation project, overall maintenance, and increased utility costs .

Management and the residents were encouraged to meet to discuss conditions at the park and resolve any management issues regarding individual spaces.

CODE ENFORCEMENT INSPECTION:

On October 10, 2023, an inspection of the common areas of the Park was performed by the Code Compliance Division, Housing and Neighborhood Services Manager, and Park management. There were seven general park violations and no lighting violations found. A copy of the Code Report (“Report”) is attached (Attachment “6”). The owner and resident manager received a copy of the Report. No rent increase may take effect until all code violations are corrected. As of October 20, 2023, all violations were corrected.

ADDITIONAL FACTORS AFFECTING THE APPLICATION:

In conformance with the Rent Review Board Guidelines, the decision of the Board will be finalized by adoption of the Resolution confirming the findings of the Public Hearing. The Notice of Determination will be mailed to the applica nt and effected residents immediately upon adoption of the Resolution. Park owners and management must give a 90 -day notice of any rent increase to affected residents upon the adoption of the Resolution.

RESOLUTIONS
a. RRB Resolution No. 2023-145

ATTACHMENTS
a. Attachment “1” – Eastwood Meadows Application
b. Attachment “2” – Application Timeline
c. Attachment “3” – Resident Long-Form Letter Notification d. Attachment “4” – 10-Day Public Hearing Notice
37 Item6.

e. Attachment “5” – RSG’s Eastwood Meadows Long-Form Rent Increase Analysis f. Attachment “6” – Code Compliance Inspection and letter clearing violations 38 Item6.

RESOLUTION NO. RRB 2023-145

A RESOLUTION OF THE CITY COUNCIL / MOBILEHOME

RENT REVIEW BOARD OF THE CITY OF ESCONDIDO,

CALIFORNIA AUTHORIZING A RENT INCREASE FOR

EASTWOOD MEADOWS MOBILEHOME PARK
(File Number: 0697-20-10336)

WHEREAS Article V of Chapter 29 of the Escondido Municipal Code is a codification of the Escondido Mobilehome Rent Protection Ordinance ("Ordinance") and provides for mobilehome space rent regulation; and
WHEREAS, the City of Escondido Mobilehome Park Rental Review Board ("Board") is charged with the responsibility of considering applications for rent increases; and WHEREAS, a long-form rent increase application was filed on September 17, 2021 (“Application”) by Bessire & Casenhsier, Inc., the owner of t he rental spaces in Eastwood Meadows Mobilehome Park (“Park”). Eastwood Meadows is an all-age park located at 2550 E. Valley Pkwy, Escondido; and WHEREAS, the application was deemed complete by City staff on August 28, 2023; and WHEREAS, this is the fourteenth rent increase application filed by the Park since the Ordinance became effective in 1988. The last rent increase was granted by Board Resolution No. RRB 2018 -06 on June 6, 2018, for an increase of 3.57% which amounted to an average increase of $17.58 per space, per month; and
WHEREAS, the application stated the average monthly rent per affected space was $671.10 for the 105 spaces requested for a rent increase. The Park requested varied monthly rent increases by space equal to the lesser of (a) $200.00 or (b) the amount needed to increase the rent to $890.00; and 39 Item6.

WHEREAS, the City staff have contracted with RSG, a local redevelopment and community development consulting firm, to provide an expert analysis of the park owner’ s application pursuant to the criteria for evaluation of a fair return which are set forth in the Ordinance; and WHEREAS, after analysis of the 11 factors to be considered by the Board in determining just, fair, and reasonable rent increases, pursuant to Section 29-104(g) of the Ordinance, and based on the MNOI methodology, RSG calculates a just, fair, and reasonable permanent rent increase of $34.48 per month for the 105 spaces included in the application and a temporary rent increase for capital improvements of $10.47 for a period of 15 years for the 115 rent-controlled spaces in the park; and WHEREAS, a notice of the Park's application was mailed to all affected homeowners on September 19, 2023. Notice of the time, date, and place of the rent hearing before the Board was mailed to the Park and to all affected tenants on October 23, 2023; and
WHEREAS, on October 10, a Mobilehome Park Rent Review Code Compliance Inspection Report ("Inspection Report") was completed. The Inspection Report noted seven general park violations and no park lighting violation; and
WHEREAS, on October 20, 2023 Code Compliance completed a reinspection and all violations were cleared; and
WHEREAS, on November 1, 2023, the Board held its public hearing. After an initia l staff presentation, the Board invited testimony from Park ownership, the Residents Representative, and other residents of the community at large; and
WHEREAS, after all present had been given an opportunity to speak, the hearing was closed.

Following an opportunity for discussion among the Board members, and clarifying questions to the parties 40 Item6.
and staff, the Board voted to grant a permanent rent increase of $34.48 per space, per month, for the 105 spaces included in the application and a temporary rent increase for capital improvements of $10.47 for a period of 15 years for the 115 rent-controlled spaces in the park.

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 finds that the Eastwood Meadows Mobilehome Park long -form application is consistent with the Guidelines, and approves the rent increase recommended by RSG.

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Housing & Neighborhood Services Division
201 North Broadway, Escondido, CA 92025
Phone: 760-839-4841
September 19, 2023
Resident
Eastwood Meadows Mobilehome Park
2550 E. Valley Parkway
Escondido, CA 92027
Re: Notice of Eastwood Meadows Mobilehome Park’s Long-Form Rent Increase Application and 30-day Comment Period
Dear Resident:

A long-form application was submitted to the City of Escondido on September 17, 2021 by Eastwood Meadows Mobilehome Park (“Park”) requesting a rent increase. The application has been reviewed and determined to be complete on August 28, 2023. The Park is requesting an increase of up to $200 per space, per month not to exceed the maximum space rent of $1,012. There are 104 spaces impacted by this request. The City hired a third-party consultant, RSG, to evaluate the Park’s financial statements from 2017 – 2021 and provide a recommendation.

You are receiving this letter, because in accordance with Section 1 of the City’s Mobilehome Rent Review Board Guidelines, all affected residents have a right to review the application, any supporting documents and submit a written comment during the thirty (30) day comment period. The application and all supporting documents are available at your Park’s Office, the City’s website at https://escondido.org/pending-applications, and the Housing Division’s front counter at City Hall on Monday – Friday from 8 a.m. to 5:30 p.m.

Please provide any written responses/comments related to the application to Danielle Lopez, City of Escondido, Housing and Neighborhood Services Division, 201 North Broadway, Escondido, CA 92025, or [email protected] All written comments must be received by the City by October 19, 2023.

City staff and RSG will hold an in-person meeting on Monday, October 9 at 6:00 p.m. in the Park Clubhouse. Please feel free to attend this meeting and ask any questions you have regarding the hearing process or discuss any concerns. A resident representative will be chosen at this meeting. This designated representative will be given an opportunity to speak on behalf of the affect ed tenants at the rent review board public hearing.

The Mobilehome Rent Review Board will consider the long-form application at the public hearing held on November 1, 2023 at 5 p.m., at the City Council Chambers, 201 North Broadway, Escondido. If you wish to present information or speak to the Board about the request, you may fill out a speaker’s slip available in the lobby of the Council Chambers and give it to the City Clerk. If you are protesting the long- form application, you should register in the lobby prior to the opening of the public hearing.

If you have any questions, please call 760-839-4518 or email me at [email protected] Sincerely,
Danielle Lopez
Housing & Neighborhood Services
Attachment "3"
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19 de septiembre de 2023
Residente
Eastwood Meadows Mobilehome Park
Re: Notificación de la solicitud de aumento de alquiler a largo plazo de Eastwood Meadows Mobilehome Park y período de comentarios de 30 días
Estimado residente:

El 17 de septiembre de 2021, Eastwood Meadows Mobilehome Park ("Parque") p resentó una solicitud de formato largo a la Ciudad de Escondido solicitando un aumento de renta. La solicitud ha sido revisada y se determinó que estaba completa el 28 de agosto de 2023. El Parque está solicitando un aumento de hasta $200 por espacio, por mes que no excedería la renta máxima de $1,012 por espacio. Hay 104 espacios afectados por esta solicitud. La Ciudad contrató a un consultor externo, RSG, para evaluar los estados financieros del Parque de 2017 a 2021 y proporcionar una recomendación.

Usted está recibiendo esta carta, porque de acuerdo con la Sección 1 de las Directrices de la Junta de Revisión de Alquiler de Casas Móviles de la Ciudad, todos los residentes afectados tienen derecho a revisar la solicitud, los documentos de apoyo, y presentar un comentario por escrito durante el período de treinta (30) días de comentarios. La aplicación y todos los documentos de apoyo están disponibles en la Oficina de su Parque, el sitio web de la Ciudad en https://escondido.org/pending-applications, y el mostrador de la División de Vivienda en el ayuntamiento de la ciudad de lunes a viernes de 8 a.m. a 5:30 p.m.

Por favor proporcione cualquier respuesta/comentario por escrito relacionado con la solicitud a Danielle Lopez, City of Escondido, Housing and Neighborhood Services Division, 201 North Broadway, Escondido, CA 92025, o [email protected]. Todos los comentarios por escrito deben ser recibidos por la Ciudad antes del 19 de octubre de 2023.

El personal de la ciudad y RSG tendrán una reunión en persona el lunes 9 de octubre a las 6:00 p.m. en la Casa Club del Parque. Por favor, no dude en asistir a esta reunión y hacer cualquier pregunta que tenga sobre el proceso de audiencia o discutir cualquier preocup ación. En esta reunión se elegirá a un representante de los residentes. Este representante designado tendrá la oportunidad de hablar en nombre de los inquilinos afectados en la audiencia pública de la junta de revisión de alquileres.

La Junta de Revisión de Alquiler de Casas Móviles considerará la solicitud de forma larga en la audiencia pública que se llevará a cabo el 1 de noviembre de 2023 a las 5 p.m ., en las Cámaras del Consejo de la Ciudad, 201 North Broadway, Escondido. Si desea presentar informaci ón o hablar con un representante sobre la solicitud, puede llenar un formulario de hablante disponible en el pasillo de las Cámaras del Concejo y entregarlo al secretario municipal. Si protesta contra la solicitud de forma larga, deberá inscribirse en el recibidor por la entrada antes del inicio de la audiencia pública.

Si tiene alguna pregunta, llame al 760-839-4518 o envíeme un correo electrónico a [email protected].

Atentamente,
Danielle López
Vivienda y Servicios Urbanos
Attachment "3"
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Housing & Neighborhood Services
201 North Broadway, Escondido, CA 92025
Phone: 760-839-4841
October 23, 2023
2550 E. Valley Parkway
Escondido, CA 92027

RESIDENT NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the City Council of the City of Escondido, sitting as the Mobilehome Rent Review Board, will hold a public hearing to consider the following item:

A long-form rental increase application for Eastwood Meadows A copy of the application is available for review at https://www.escondido.org/pending-applications, Eastwood Me adows Mobilehome Park Office or the Housing & Neighborhood Services Division at City Hall, 201 N. Broadway. A copy of the staff report will be available at the Housing counter five days prior to the hearing date.

A public hearing is sche duled for November 1, 2023, at 5 p.m . in the City Council Chambers, 201 N.

Broadway, Escondido, CA 92025 to determine whether or not a rent increase will be granted for your park.

If you are protesting the long-form application, you should register in t he foyer prior to the opening of the public hearing. The purpose of the hearing is for the Rent Review Board to obtain input from the owner and tenants about why an increase should or should not be granted. If you challenge the decision of the Board in court, you may be l imited 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 Rent Review Board at or prior to the public hearing.

You may also submit your fe edback to Danielle Lopez at [email protected] or call 760 -839-4518 and this information will be included in the City Council presentation.

At the hearing, the Rent Review Board may make a determination abo ut the re nt increase or they may request additional information from the owner or tenants. If additional information is requested, a new hearing will be scheduled. If an increase is granted, the owner must notify you in writing of the amount of the increase at least (90) days before the increase goes into effect.

Sincerely,
Danielle Lopez
Danielle Lopez
Interim Housing & Neighborhood Services Manager
Attachment "4"
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23 de octubre del 2023

2550 E. Valley Parkway
Escondido, CA 92027

AVISO PARA RESIDENTES DE AUDIENCIA PÚBLICA

POR LA P RESENTE SE NOTIFICA que el Concejo Municipal de la Ciudad de Escondido, siendo la Comisión Evaluadora que Revisan las Rentas de Casas Móviles, tendrá una audiencia pública para considerar el siguiente punto:

La aplicación de forma-larga de aumento de renta para Eastwood Meadows

Una copia de la aplicación está disponible para revisión en https://www.escondido.org/pending- applications, la oficina de Eastwood Meadows Mobilehome Park o Div isión de Vivienda y Servic ios al Vecindario en el Ayuntamiento, 201 N. Broadway. Una copia del reporte del personal estará disponible en el mostrador de la División de Vivienda cinco días antes de la fecha de la audiencia.

Una audiencia pública está prog ramada para el 1 de noviembre del 2023 a las 5 p.m. en la Sala Consistorial del Concejo Municipal, 201 N. Broadway, Escondido, CA 92025 para determinar si se otorgará o no un aumento de renta para su parque.

Si usted está protestando esta aplicación de forma-larga, debe registrarse en el vestíbulo antes de que comience la audiencia pública. El propósito de la audiencia es que la Comisión Evaluadora que Revisa las Rentas obtenga información del propietario y los in quilinos sobre por qué se debe o no se debe otorgar un aumento. Si impugna la decisión de la Comisión Evaluadora ante la corte, puede quedar limitado a proponer solo aquellos asuntos que usted u otra persona haya propuesto en la audiencia pública descrita en este aviso, o en la correspondencia escri ta entregada a la Comisión Eval uadora que Revisa las Rentas durante o antes de la audiencia pública.

También puede enviar sus comentarios a Danielle Lopez a [email protected] o llamar al 760-839- 4518 y está información se incluirá en la presentación al Concejo Municipal.

En la audiencia, la Comisión Evaluadora de Revisión de Rentas puede tomar una determinación sobre el aumento de renta o pueden solicitar informa ción adicional del propietario y / o inquili nos antes de tomar una decisión. Si se solicita información adicional, se programará una nueva audiencia. Si se concede un aumento, el propietario debe notificarle por escrito de la cantidad del aumento al meno s (90) días antes de que el aumento entre en vigencia.

Sinceramente,
Danielle Lopez

Danielle Lopez,
Gerente de Vivienda y Servicios al Vecindario (Interina) Attachment "4"
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Via Electronic Mail
To: Mo bilehome Park Rental Review Board

CITY OF ESCONDIDO
From: Tara Matthews, Principal
Dominique Clark, Director
RSG, INC.

Date: September 21, 2023
SUBJECT: EASTWOOD MEADOWS LONG-FORM RENT INCREASE ANALYSIS On September 17, 2021, City of Escondido (“City”) staff received a Long-Form Mobilehome Park Application for Space Rent Increase (“Original Application”) for Eastwood Meadows (“Park”), an all-age mobilehome park with 129 spaces located at 2550 E. Valley Parkway , Escondido, CA 92027. On August 28, 2023, City staff received a final revised version of the Original Application (“Application”). In the Application and supplemental documents submitted by the Park owner (and/or representatives of the Park owner) (“Applicant”), the Applicant requested a rent increase ranging from $12.23 to $200.00 per month for 105 of the 115 rent-controlled spaces in the Park.

The Applicant is not requesting a rent increase for the remaining 10 rent-controlled spaces – 9 of which are currently charged rents of $890.00 or more and 1 of which is occupied by a park-owned mobilehome.

Based on a review of the City’s Mobilehome Rent Control Ordinance (City of Escondido Municipal Code Chapter 29, Article 5) (“Ordinance”) and Mobilehome Rent Review Board Guidelines (“Guidelines”), as well as the documents submitted by the Applicant, RSG calculates the following just, fair, and reasonable rent increases for the Park:
• Permanent Increase: $34.48 per space per month for the 105 spaces included in t he Application. Note that this amount exceeds the Applicant’s request for three spaces (25, 95, and 104). Thus, RSG recommends that the Board approve a permanent rent increase of up to $34.48.
• Temporary Increase for Capital Improvements: $10.57 per space per month for a period of 15 years, or 180 months for the 115 rent -controlled spaces in the Park. RSG Attachment "5"
198
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Mobilehome Park Rental Review Board
City of Escondido
September 21, 2023

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recommends that the Board consider re quiring the Applicant to itemize this capit al improvement rent increase separately on the monthly resident billing statements. Note that the calculation of this rent increase accounts for all 129 spaces in the Park (all of which benefit from the capital improvements) but the Board has the authority to approve rent increases for only the 115 rent-controlled spaces.

This memo details the following:

1. Overview of the application processes for mobilehome park rent increases in Escondido;

2. Backgr ound information about the Park;

3. Summary of the Applicant’s rent increase request;

4. Timeline of processing the Application;

5. RSG ’s analysis of the 11 factors to be considered by the Mobilehome Park Rental Review Board (“Board”) in determining just, fair, and reasonable rent increases, pursuant to Section 29-104(g) of the Ordinance;

6. The methodology for calculating just, fair, and reasonable rent increases for long-form rent increase applications;

7. RSG’s calculation of a just, fair, and reasonable permanent rent increase; and

8. RSG’s calculation of a j ust, fair, and reasonable temporary rent increase as reimbursement for capital improvement expenditures.

APPLICATION PROCESSES FOR MOBILEHOME PARK RENT INCREASES IN ESCONDIDO Short-Form Application Process
Owners of mobilehome parks in Escondido may request a rent increase using the “short -form” application process if (1) it has been at least one year since the last rent increase application was deemed complete and (2) the park owner’s request applies to 100% of rent-controlled spaces in the park. In a short-form application, a park owner may request an increase of the lesser of 90% of the increase in the Consumer Price Index (“CPI”) since the last rent increase granted by the Board, or 8%. The Board must presume that a rent increase of up to 90% of the increase in the CPI since the last rent increase granted by the Board is a just, fair, and reasonable increase.

However, the Board may consider other factors at the request of either the park owner or the affected residents in determining that a lesser increase is just, fair, and reasonable.

Pursuant to Section 12 of the Guidelines, a park owner cannot submit a short-form application in the following two scenarios:

Attachment "5"
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Mobilehome Park Rental Review Board
City of Escondido
September 21, 2023

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1. It has been more than two years since the last rent increase was granted by the Board; or

2. The Board has determined that the park owner increased space rents upon the closure of an in-place transfer or other conveyance of a rent-controlled mobilehome beyond the limits detailed in Section 12(M) of the Guidelines (“vacancy control”). In this scenario, the park owner cannot use the short-form application process for five years.

Long-Form Application Process
The alternative to the short -form application process is the long -form application process . Any park owner can submit a long-form application if it has been at least one year since the last rent increase application was deemed complete. Typically, a park owner utilizes the long -form application process when they are ineligible for the short-form application process and/or they are requesting a rent increase that is higher than the amount allowable through the short-form process (the lesser of 90% of the increase in the CPI since the last rent increase granted by the Board or 8%). The City last processed a long-form application in 2016 for Sundance Mobilehome Park.

While the Board typically considers only CPI in the short-form application process, the Board must consider at least 11 factors in the long-form process. Section 29-104(g) of the Ordinance states that the Board must consider the following 11 factors, in addition to any other factors it considers relevant, in determining just, fair, and reasonable rent increases requested via the long- form application process:

1. Changes in the CPI for All Urban Consumers in the San Diego Metropolitan Area published by the U.S. Bureau of Labor Statistics;

2. The rent lawfully charged for comparable mobilehome spaces in the City;

3. The length of time since the last hearing and final determination by the Board on a rent increase application (or the last rent increase if no previous rent increase application has been made);

4. The completion of any capital improvements or rehabilitation work related to the mobilehome space(s) specified in the rent increase application, and the cost thereof, including such items of cost, including materials, labor, construction interest, permit fees, and other items as the Board deems appropriate;

5. Changes in property taxes or other taxes related to the subject mobilehome park; Attachment "5"
200
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Mobilehome Park Rental Review Board
City of Escondido
September 21, 2023

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6. Changes in the rent paid by the applicant for the lease of the land on which the subject mobilehome park is located;

7. Changes in the utility charges for the subject mobilehome park paid by the applicant and the extent, if any, of reimbursement from the tenants.

8. Changes in reasonable operating and maintenance expenses;

9. The need for repairs caused by circumstances other than ordinary wear and tear;

10. The amount and quality of services provided by the applicant to the affected tenant; and

11. Any existing written lease lawfully entered into between the applicant and the affected tenants.

Rent Increase Process for Reimbursement of Capital Improvement Expenditures Pursuant to Section 8 of the Guidelines, park owners may submit to the City a rent increase application that is based in part or entirely on the cost of capital improvements and/or rehabilitation work. Section 29-101(b) of the Ordinance defines a capital improvement as “the installation of new improvements and facilities and/or the replacement or reconstruction of existing improvements and facilities which consist of more than ord inary maintenance and/or repairs.” Section 29-104(h) of the Ordinance requires that a rent increase granted by the Board as a result of one or more capital improvements be temporary so as not to continue beyond the time necessary for reasonable amortization of the cost of the improvement, including interest. Section 8(b) of the Guidelines further clarifies that a reasonable amortization period is commensurate with the expected life of the improvement based on standard depreciation tables used to determine tax deductions.

BACKGROUND ON EASTWOOD MEADOWS
Overview of Park
Eastwood Meadows is an all -age mobilehome park located at 2550 E. Valley Parkway , Escondido, CA 92027. The Park has 129 spaces, which are currently occupied by 11 9 double- wide mobilehomes and 10 single-wide mobilehomes. The Park's amenities include a recreation building with an office, exercise room, and kitchen; a laundry building with coin-operated washing machines and dryers; a car wash area; a swimming pool; and a playground.

Attachment "5"
201
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Mobilehome Park Rental Review Board
City of Escondido
September 21, 2023

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The following section details the billing structure for Park utilities as reported by the Applicant:
• Trash: Residents are billed by the Park. They are charged a monthly flat fee based on the trash company’s rates and the master bill from the company. In 2021, the fee was $26.39 per space per month.

• Gas: Residents are billed by the Park based on their individual meter readings. Note that the rates charged to the residents are approved by the California Public Utilities Commission (“CPUC”), which regulates natural gas utility rates and services provided by the natural gas supplier ( San Diego Gas & Electric Company , or “SDG&E”). The CPUC allows rates to include a differential to be collected from Park residents that is to be used for system maintenance.

• Electricity: Eastwood Meadows is adjacent to another mobilehome park owned by the Applicant called Mobile Park West. The two parks are billed together for electricity, sewer, and water. For electricity, management allocates one -third of the cost to Eastwood Meadows and two-thirds to Mobile Park West based on the master meter bill, but Eastwood Meadows residents are sub -metered and billed by the Park based on their individual meter readings.

• Sewer: Residents are billed by th e Park. They are billed a fee that varies from month to month, but each resident is billed the same amount based on th at month’s master bill divided by the number of spaces in the Park. As mentioned above, Eastwood Meadows and Mobile Park West are billed together for electricity, sewer, and water. For sewer, management allocates 29% of the cost to Eastwood Meadows and 71% to Mobile Park West based on the number of spaces in each community.

• Water: As mentioned above, Eastwood Meadows and Mobile Park West are billed together for electricity, sewer, and water. For water, management allocates 29% of the cost to Eastwood Meadows and 71% to Mobile Park West based on the number of spaces in each community. Historically, water had not been sub-metered and billed to residents.

However, the Applicant is in the process of installing water meters to bill residents based on their usage. Upon turnover of spaces, new residents are being charged based on usage. As a result, only newer residents are being charged for water and the cost of water is still included in the rent for most residents.

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Last Rent Increase for Park

The Application is the fourteenth application for a rent increase filed for the Park since the Ordinance was implemented in 1988. The last rent increase application for the Park was a short- form application deemed complete in April 2018. The applicant requested a rent increase based on 75% of the change in the CPI between December 31, 2015, and December 31, 2017, or 3.57% (an average of $17.58 per space). On June 6, 2018, the Board adopted Resolution No. RRB 2018-06 to approve the applicant’s rent increase as requested.

APPLICANT’S RENT INCREASE REQUEST
In the Application, the Applicant proposes to increase rents for 105 of the 129 spaces in the Park.

The Applicant’s proposed monthly rent increase varies by space and is equal to the lesser of (a) $200.00 or (b) the amount needed to increase the rent to $890.00. Based on the Application, the Applicant’s rent increase request is based upon various factors, including the following:
• The change in CPI since the last Board-approved rent increase for the Park; • The length of time since the Board last approved a rent increase for the Park; • Capital improvement expenditures incurred in 2021;
• The increase in property taxes following the sale of the land in 2018; • The recent increase in water costs; and
• A September 2020 appraisal that supports a market space rent value of $1,270.00 per month.

The 24 spaces for which the Applicant is not requesting a rent increase include the following three types of spaces:
• 14 spaces that are subject to leases longer than 12 months (“long-term leases”); • 9 spaces that are rent-controlled but already have rents at or above $890.00; and • 1 space that is rent-controlled but occupied by a park-owned mobilehome (Space 68).

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Pursuant to California Civil Code Section 798.17, households subject to a long-term lease are not subject to the Ordinance if the lease was executed prior to February 13, 2020, and has not yet expired. According to the Applicant, the households occupying the 14 spaces shown in Table 1 executed long-term leases prior to February 2013, 2020 that have not yet expired. Thus, the Applicant believes that these 14 spaces are exempt from the Ordinance.

Table 1: 14 Spaces Subject to Long-Term Leases Executed Prior to February 13, 2020

Table 2 shows the nine spaces that are subject to the Ordinance that already have rents of $890.00 or more.

Space
Rent as of
8/11/20231
Date of Execution of
Long-Term Lease2
Date of Expiration of
Long-Term Lease1
5 $852.14 12/1/2019 11/30/2024
18 $958.18 6/3/2019 5/31/2024
54 $955.29 2/7/2020 1/31/2025
59 $800.41 8/1/2019 7/31/2024
64 $787.91 8/1/2019 7/31/2024
74 $787.91 9/1/2019 8/31/2024
81 $865.73 1/1/2019 12/31/2024
82 $871.25 5/1/2019 4/30/2024
90 $955.29 2/1/2020 1/31/2025
94 $838.63 12/1/2019 11/30/2024
111 $914.76 9/12/2019 9/11/2024
119 $847.18 1/1/2020 12/31/2025
120 $915.04 10/24/2019 9/30/2024
127 $858.33 5/1/2019 4/30/2024
1 Source: Application
2 Source: Park's Mobilehome Park Annual Rent Control Survey submitted to the City for the July 1, 2021 through June 30, 2022 period Attachment "5"
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Table 2: Nine Spaces Subject to Ordinance with Rents of $890 or More

TIMELINE OF APPLICATION
Initially, the Applicant submitted a short-form application to the City in 2021. However, City staff ultimately determined that the Applicant was not eligible for the short -form application process, because rents for several spaces in the Park had been increased beyond the allowable 8% following in-place transfers. As stated above, Section 12(M) of the Guidelines states that a park owner agrees to not use the short-form application process for five years if the Board determines that the park owner increased space rent beyond 8% upon the closure of an in -place transfer.

This disallowance prompted the Applicant to file a long-form application.

The Applicant first filed the long-form application on September 17, 2021. The length of time from the submission of the Original Application on September 17, 2021 to the Board hearing on the Application on November 1, 2023 was 2 years and 45 days, or 775 days . Exhibit A shows a detailed breakdown of the 775 days, based on RSG’s records. In the 775-day period, RSG issued 10 letters deeming the materials submitted by the Applicant incomplete (“Incomplete Letters”) and the Applicant submitted a revised application five times. Table 3 summarizes the issues noted in each of the 10 Incomplete Letters.

Space
Rent as of
8/28/20231
2 $890.00
15 $890.00
29 $890.00
39 $950.00
67 $950.00
88 $890.00
108 $961.20
113 $935.75
123 $890.00
1 Source: Application
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Table 3: Issues Noted in Letters Deeming Application Incomplete

Note that, on November 18, 2022, RSG notified the Applicant that the first revised version of the application (“Revised Application #1”) was deemed complete. On November 23, 2022, RSG notified the Applicant that a Board hearing on the application was tentatively scheduled for January 11, 2023. The City then notified residents in a letter dated December 8, 2022 that (1) the application had been deemed complete, (2) a resident meeting was scheduled on December 19, Incomplete
Letter # Date Primary Issues Noted
1 10/14/2021
Insufficient documentation of increase in water costs; additional information needed about capital improvement expenditures and property tax expenses 2 11/18/2021
Water expenses reported by the Applicant were overstated due to including costs for both Eastwood Meadows and Mobile Park West
3 5/25/2022
Year-end financial statements and invoice and proof of payment for each reported expenses needed for the base year (2017) and the final year of RSG's analysis (2020 or 2021)
4 6/9/2022
Invoice and proof of payment needed for each 2017 and 2021 expense in 10 specified expense categories in which expenses (1) increased more than inflation between 2017 and 2021 and (2) increased more than $5,000 between 2017 and 2021 (this request superseded the request in Incomplete Letter #4 for an invoice and proof of payment for all base year and current year expenses)
5 7/22/2022
Several discrepancies between the total expenses reported on the 2017 and 2021 year- end financial statements and the invoices provided
6 9/16/2022
Additional information needed about the 2017 and 2021 utility income and expenses and capital improvement expenses; duplicate expenses
7 1/30/2023
Reimbursements were owed to five households that the Applicant had stated were exempt from rent control that were subject to rent control due to executing their long- term leases after 2/13/2020
8 3/24/2023
Discrepancies between information provided in the Application and the 2022 Mobilehome Park Annual Rent Control Survey provided for the Park 9 6/14/2023
Final corrections needed to the Application to prepare it for public viewing (e.g., correction of park owner name, completion of blank sections, final versions of 2017 and 2021 year-end financial statements)
10 8/7/2023
Additional corrections needed to the Application to prepare it for public viewing (e.g., corrections to the total property tax and water expenses reported; corrected 2021 year- end financial statements)
8/28/2023: RSG DEEMS REVISED APPLICATION #5 COMPLETE
2/18/2022: APPLICANT SUBMITS REVISED APPLICATION #1
12/15/2022: APPLICANT WITHDRAWS REVISED APPLICATION #1
1/9/2023: APPLICANT SUBMITS REVISED APPLICATION #2
2/3/2023: APPLICANT SUBMITS REVISED APPLICATION #3
7/24/2023: APPLICANT SUBMITS REVISED APPLICATION #4
8/28/2023: APPLICANT SUBMITS REVISED APPLICATION #5
11/18/2022: RSG DEEMS REVISED APPLICATION #1 COMPLETE
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2022, (3) written comments were due from residents by January 7, 2023, and (4) 86 spaces in the Park would be impacted by the Applicant ’s request for a rent increase of up to $200.00.

However, as RSG was preparing our memo in advance of the January 11, 2023 hearing, we noticed inconsistencies in Revised Application #1 about the number of spaces affected by the proposed rent increase and the number of long-term leases exempt from the City's Ordinance.

On December 6, 2022, RSG contacted the Applicant about these inconsistencies , which ultimately led to the Applicant withdrawing Revised Application #1 on December 15, 2022, and submitting additional revisions. The City notified residents in a letter dated December 15, 2022 of the withdrawal and the cancellation of the December 19, 2022 resident meeting.

Pursuant to Section 29-104(e) of the Ordinance, the Board is required to hold a hearing on a long- form rent increase application within 60 days after the application is deemed complete . If the hearing is held past the 60- day deadline, the Board must approve a temporary rent increase to compensate the applicant for the delay. RSG deemed the final version of the Application complete on August 28, 2023. Thus, the 60 -day deadline for the Board to h old a hearing is October 27, 2023. The City initially scheduled the hearing on October 25, 2023, which was before the deadline.

However, the Applicant had a scheduling conflict on October 25, 2023, and requested via an email dated September 14, 2023, that the hearing be postponed to November 1, 2023. The City granted this request. Because the delay of hearing was due to the Applicant’s request, RSG believes a temporary rent increase to compensate the Applicant for the delay is not needed.

ANALYSIS OF FACTORS FOR DETERMINING JUST, FAIR , AND REASONABLE RENT

INCREASES
The following section details RSG’s analysis of the 11 factors to be considered by the Board in determining just, fair, and reasonable rent increases, pursuant to Section 29 -104(g) of the Ordinance.

Analysis of the 11 factors requires first determining a base year and current year for the purposes of the Application. Section 10(K) of the Guidelines states that, “in its evaluation of information submitted to support a rent increase application, the Board may consider information, facts and circumstances arising since the last application for a rent increase was deemed complete.” Based on City records, the last rent increase application for the Park was deemed complete in April 2018.

That application resulted in an increase approved by the Board on June 6, 2018, based on 75% of the change in the CPI between December 2015 and December 31, 2017. Thus, RSG considers 2017 to be the appropriate base year.

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The final year of the analysis is typically the most recently completed calendar year as of the date when the application was submitted. The Original Application was submitted in 2021, which would result in a current year of 2020. However, in our March 25, 2022 letter deeming Revised Application #1 incomplete (“Incomplete Letter #3”), RSG provided the Applicant the option to update the base year to 2021. The Applicant provided RSG the back-up documentation for 2021 expenses, so RSG considers 2021 to be the appropriate current year.

Factor No. 1: Changes in the CPI for All Urban Consumers in San Diego Metropolitan Area published by the U.S. Bureau of Labor Statistics.

The CPI is the most widely used measure of inflation. As previously mentioned, t he last rent increase application for the Park was a short -form application that resulted in an increase approved on June 6, 2018, based on 75% of the change in the CPI between December 31, 2015, and December 31, 2017. In calculating that rent increase, City staff utilized the CPI figure for the San Diego-Carlsbad Metropolitan Area (on a 1982-84 base) for the second half of 2017 (284.464) to reflect the CPI as of December 31, 2017 . Accordingly, RSG used 284.464 as the base year CPI for the purposes of this Application.

For the current year CPI, RSG used the CPI figure for the San Diego-Carlsbad Metropolitan Area (on a 1982-84 base) for the second half of 2021 (325.241) to reflect the CPI as of December 31, 2021 (see Exhibit B for CPI data).1
Based on the above information, the percent change in the CPI relevant to this Application is calculated as follows:

Current Year CPI (2021) = 325.241
Base Year CPI (2017) = 284.464
Difference in CPI = 40.777
Therefore:

40.777 (difference in CPI) x 100 14.335% (Percent change in the CPI) 284.464 (Base Year CPI)

Section 7 of the Guidelines states the following requirement for long- form rent increase applications: “the Board shall take into account no more than 60% of increases in the CPI which portion of the CPI shall include costs properly associated with the operation of a mobilehome park

1 Note that RSG used the CPI figures for the second half of 2017 and the second half of 2021 rather than the full years of 2017 to 2021 to be consistent with the City’s practices.

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(such as property taxes, fuel, and utilities).” Accordingly, 60% of the 14.33 5% change in CPI between the base year CPI and current year CPI is 8.601%.

Factor No. 2: The rent lawfully charged for comparable mobilehome spaces in the City of Escondido.

Based on information published on the City’s website , the City has 19 mobilehome parks with rent-controlled spaces. Among the 19 parks, the average space rent for rent-controlled resident- owned mobilehomes at each park ranged from $315.80 to $843.30 as of July 1, 2021. Eastwood Meadows’ average was $591.37, which was the eighth highest of the 19 parks. In other words, 7 parks had a higher average rent, and 11 parks had a lower average rent.

Factor No. 3: The length of time since either the last hearing and final determination by the Board on a rent increase application or the last rent increase if no previous rent increase application has been made.

The Board last granted a rent increase to Eastwood Meadows at the Board’s meeting on June 6, 2018, which is approximately 5 years and 5 months prior to the November 1, 2023 hearing on this Application.

Factor No. 4: The completion of any capital improvements or rehabilitation work related to the mobilehome space(s) specified in the rent increase application, and the cost thereof, including such items of cost, including materials, labor, construction interest, permit f ees, and other items as the Board deems appropriate.

The 2021 Park expenses reported by the Applicant include $199,430.00 of expenses incurred for asphalt resurfacing, sealing, and re -striping. RSG considers these expenditures to meet the definition of a capital improvement provided in Section 29-101 of the Ordinance . Pursuant to Section 29-104(h) of the Ordinance, RSG recommends that the Board exclude these expenses from the calculation of the permanent rent increase and approve a separate temporary rent increase that does not continue beyond the time necessary for reasonable amortization of the cost of those improvements, including interest. Later in this memo, RSG calculates the just, fair, and reasonable temporary rent increase warranted to reimburse the Applicant for these capital improvement expenses.

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Factor No. 5: Changes in property taxes or other taxes related to the subject mobilehome park.

The land on which the Park is located was sold to new owners in September 2018, triggering property reassessment. As a result, the Park’s property taxes increased significantly. As shown in Table 4, property taxes increased $93,183 (or 508.1%) between 2017 and 2021. According to the Applicant, even though the Applicant leases the land on which the Park is located, the Applicant is responsible for all operations and expenses, including property taxes.

Table 4: Change in Property Taxes (2017 to 2021)

Factor No. 6: Changes in the rent paid by the applicant for the lease of the land on which the subject mobilehome park is located.

As shown in Table 5, the land lease for the Park increased $15,089 (or 14.0%) between 2017 and 2021.

Table 5: Change in Land Lease Payments (2017 to 2021)

Factor No. 7: Changes in the utility charges for the subject mobilehome park paid by the applicant and the extent, if any, of reimbursement from the tenants.

Table 6 shows the changes in utilities paid for the Park between 2017 and 2021. The amounts shown are net of reimbursements from residents. Note that gas usage is shown as $0 in 2017 and 2021, because the Applicant reported income from residents that exceeded expenses for both years. RSG considers it reasonable that the amount collected from residents for gas usage exceeds the amount of expenses billed by the gas company (although RSG cannot confirm whether the residents were charged the correct rates). As stated previously, SDG&E supplies natural gas to the Park. The CPUC, which regulates natural gas utility rates and services provided by SDG&E, allows rates to include a differential to be collected from Park residents that is to be used for system maintenance.
2017 2021 Change ($) Change (%)
Property Taxes 18,340$ 111,523$ 93,183$ 508.1% 2017 2021 Change ($) Change (%)
Land Lease 107,433$ 122,522$ 15,089$ 14.0%
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Also note that the cost of water in the Park has increased significantly between 2017 and 2021.

As stated by the City’s Interim Director of Utilities, prior to approximately five years ago, the Park’s water meter was buried in a vault and was not able to be read for many years. During that period, the City assumed a conservative water usage for billing purposes. Approximately five years ago, City staff worked closely with Park management to raise the water meter above ground and replace it with a new meter. Since the new water meter was installed, it has become clear that the water usage assumed for billing purposes while the previous meter could not be read was significantly less than the actual water usage during that time. Thus, the Park was significantly underbilled for many years and has experienced in a significant increase in water bills now that the meter can be read.

Table 6: Change in Utility Costs Net of Resident Reimbursements (2017 to 2021)

Factor No. 8: Changes in reasonable operating and maintenance expenses.

As shown as Table 7, operating expenses increased a total of $114,339 (or 24.1%) between 2017 and 2021. It should be noted that property taxes, land lease payments, and utility costs (which have just been reviewed above) are again included in these figures for comparison purposes to show the total increases and decreases in Park operating expenses by expense category.

2017* 2021* Change ($) Change (%)
Electricity (Common Areas) 27,395$ 4,883$ (22,512)$ -82.2% Sewer (Common Areas) 1,167$ 1,821$ 654$ 56.1% Gas -$ -$ -$ -
Water 16,782$ 67,519$ 50,737$ 302.3%
Trash Collection 9,217$ 3,450$ (5,767)$ -62.6% *Amounts shown are net of reimbursement from residents.

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Table 7: Change in Park Operating Expenses (2017 to 2021)

The major expense increases (above $10,000) were in the following four categories: property taxes, water, grounds and landscaping, and land lease payments. The major expense decreases (above $ 10,000) were in the following four categories: on-site management, electricity for common areas, utilities repair, and street and driveway maintenance.

Per RSG’s request, the Applicant provided 2017 and 2021 year-end financial statements, as well as an invoice for all expense categories that (1) increased more than the rate of inflation between 2017 and 2021 and (2) increased more than $5,000 between 2017 and 2021. Please refer to Exhibit C for a list of adjustments RSG made to the expense amounts reported by the Applicant 2017* 2021*
Change ($)
2017 to 2021
Change (%)
2017 to 2021
Property Management $42,187 $51,964 $9,777 23.2%
On-site Management $102,024 $64,461 ($37,563) -36.8%
Gas $0 $0 $0 -
Electric (Common Area) $27,395 $4,883 ($22,512) -82.2%
Cable TV $536 $1,959 $1,423 265.4%
Water $16,782 $67,519 $50,737 302.3%
Sewer $1,167 $1,821 $654 56.1%
Trash $9,217 $3,450 ($5,767) -62.6%
Grounds & Landscaping $24,218 $55,674 $31,456 129.9%
Buildings - General $16,953 $7,929 ($9,024) -53.2%
Pool/Jacuzzi $7,475 $10,635 $3,160 42.3%
Utilities Repair $19,154 $6,088 ($13,066) -68.2%
Streets & Driveways $28,616 $16,229 ($12,388) -43.3%
Vehicle Repair & Maintenance $5,207 $4,387 ($820) -15.7% Business Licenses/Permits $2,928 $2,869 ($59) -2.0%
Legal Expenses $397 $50 ($347) -87.4%
Accounting, Data Processing & CPA $20,732 $25,906 $5,174 25.0% Rent Control Fees $0 $7,800 $7,800 -
Security Guard Service $5,940 $8,460 $2,520 42.4%
Land Lease $107,433 $122,522 $15,089 14.0%
Depreciation $0 $0 $0 -
Real & Personal Property Taxes $18,340 $111,658 $93,318 508.8% Franchise Tax Board $800 $800 $0 0.0%
Property & General Liability Insurance $8,933 $9,325 $392 4.4% Miscellaneous $8,207 $2,591 ($5,615) -68.4%
TOTAL $474,641 $588,981 $114,339 24.1%
*Yellow highlighting denotes that RSG disallowed or amended some expenses in the category. See Exhibit C for details.

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based on our review of the year-end financial statements and invoices provided. Note that the 2017 and 2021 year-end financial statements are provided in Exhibit 4 to the Application.

Factor No. 9: The need for repairs caused by circumstances other than ordinary wear and tear.

To RSG’s knowledge, no repairs were caused by circumstances other than ordinary wear and tear.

Factor No. 10: The amount and quality of services provided by the applicant to the affected tenant.

Pursuant to Section 1 of the Guidelines, the City’s Code Compliance Division must inspect the common areas of the park and submit a report concerning the condition of the facilities prior to the Board hearing on the Application. The report includes a summary of any past violations and corrective actions. This report is provided as an attachment to the staff report for the Board hearing on the Application.

Factor No. 11: Any existing written lease lawfully entered into between the applicant and the affected tenant.

To RSG’s knowledge, there are no issues related to leases between the Applicant and the residents of the 105 rent-controlled spaces.

Additional Factors: Change in rental income.

Section 29-104(g) permits the Board to consider “any other factors it considers relevant” in addition to the above 11 factors. The additional factor that RSG has considered relevant in our analysis is the increase in rental income between 2017 and 2021. As shown in Table 8, Park rent increase increased $112,763 (or 12.7%) between 2017 and 2021 , thus offsetting 98.6% of the increase in operating expenses during that period.

Table 8: Change in Park Rental Income (2017 to 2021)

2017 2021 Change ($) Change (%)
Rental Income 885,091$ 997,854$ 112,763$ 12.7%
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METHODOLOGY FOR CALCULATING JUST, FAIR, AND REASONABLE RENT INCREASES

FOR LONG-FORM RENT INCREASE APPLICATIONS

For several previous long-form rent increase applications, the City retained Dr. Kenneth Baar to provide an expert analysis of each application pursuant to the criteria set forth in the Ordinance.

To calculate the just, fair, and reasonable rent increases for each of those applications, Dr. Baar used the Maintenance of Net Operating Income (“MNOI”) methodology. In his report for the last long-form application processed by the City for the Sundance Mobilehome Park in 2016, Dr. Baar stated the following about the MNOI methodology : “Since the mid -1990’s, the Escondido Rent Board has usually used an MNOI standard in order to determine allowable rents and the courts have upheld the use of this type of standard. Under the MNOI standard, park owners have a right to rent increases that cover operating cost increases and provide growth in net operating income indexed by an inflation factor.” Additionally, Dr. Baar states, “While the Escondido ordinance does not set forth a specific fair return standard, the criteria set forth in the Escondido ordinance support the use of an MNOI standard. A prominent commonality among the criteria […] is that they relate to increases in park operating expenses and inflation (the Consumer Price Index), factors which are central under the MNOI standard.”

City staff requested that RSG continue the use of the MNOI methodology to calculate the just, fair, and reasonable rent increase for this Application. The MNOI methodology entails the following steps:
• STEP 1: Determine the net operating income (“NOI”) in the base year (“Base Year NOI”). Typically, the NOI of a business is revenue less operating expenses. However, for the purpose of this Application, RSG calculates NOI as the Park’s rental revenue minus the Park’s operating expenses. RSG excludes from the calculation Park income other than rental revenue so that the change in the other income has no impact on the amount of the just, fair, and reasonable rent increase. This methodology prevents a decrease in late fees from resulting in a higher rent increase, for example. Thus, RSG calculates the Base Year NOI as rental income in the base year less operating expenses in the base year.

Base
Year NOI
Base
Year
Rental
Income
Base
Year
Operating
Expenses
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• STEP 2: Increase the Base Year NOI by the income from the last Board- approved rent increase to determine the Adjusted Base Year NOI. To ensure that the Applicant maintains the Park NOI achieved after the last rent increase that the Board determined to be just, fair, and reasonable, the Adjusted Base Year NOI is the sum of the Base Year NOI (from Step 1 above) and the income generated from the last Board -approved rent increase.

• STEP 3: Calculate the Fair Current Year NOI. The Fair Current Year NOI is the amount of NOI that the park owner would need to receive in the current year to maintain the NOI achieved after the last Board -approved rent increase, adjusted for 60% of inflation. The Fair Current Year NOI is equal to the Adjusted Base Year NOI (from Step 2 above) multiplied by the sum of 1 and 60% of the change in CPI between the base year and the current year, per Section 7 of the Guidelines.

Adjusted
Base Year
NOI
Base Year
NOI
Income
from Last
Board-
Approved
Rent
Increase
Fair
Current
Year NOI
Adjusted
Base Year
NOI
1 + 60% of
the Change
in CPI Since
Base Year
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• STEP 4: Calculate the Actual Current Year NOI. The Actual Current Year NOI is equal to the rental income in the current year less operating expenses in the current year.

• STEP 5: Calculate the Fair NOI Increase. The Fair NOI Increase is the increase in the Actual Current Year NOI needed (if any) to achieve the Fair Current Year NOI from Step

3. It is a simple calculation of the Fair Current Year NOI (from Step 3 above) less the Actual Current Year NOI (from Step 4 above).

• STEP 6: Calculate the Fair Monthly Space Rent Increase. The Fair Monthly Space Rent Increase is the monthly rent increase amount per space warranted for the park (if any) to ensure the park owner receives the Fair Current Year NOI (from Step 3 above). It is calculated as the Fair NOI Increase ( from Step 5 above) divided by the number of spaces in the park and 12 months.

Actual
Current
Year NOI
Current
Year
Rental
Income
Current
Year
Operating
Expenses
Fair NOI
Increase
Fair
Current
Year NOI
Actual
Current
Year NOI
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RSG CALCULATION OF JUST, FAIR, AND REASONABLE PERMANENT RENT INCREASE

Based on the MNOI methodology outlined above, RSG calculates a just, fair, and reasonable permanent rent increase of $34.48. RSG’s calculation is as follows:

Step 1: Determine the Base Year NOI

As previously mentioned, RSG considers the appropriate base year for this Application to be 2017, because the last rent increase approved for the Park in 2018 was based on the change in CPI through December 2017. As shown in Table 9, RSG calculates a Ba se Year NOI of $410,449.68. Note that Table 7 above shows the breakdown of the 2017 operating expenses.

Table 9: Calculation of Base Year NOI

Step 2: Determine the Adjusted Base Year NOI

As shown in Table 10, RSG calculates an Adjusted Base Year NOI of $425,638.80. Note that the calculation of the annual income generated from the last Board-approved rent increase is based on information in the staff report for the last rent increase approved for the Park in 2018. According to the staff report, the Board approved an average monthly rent increase of $17.58 for 72 spaces in the Park ($17.58 average monthly rent increase * 72 spaces * 12 months = $15,189.12).

Fair
Monthly
Space
Rent
Increase
Fair NOI
Increase
Number of
Spaces in
the Park
12 Months
2017 Rental Income 885,091.00$
2017 Operating Expenses (474,641.32)$
Base Year NOI 410,449.68$
Attachment "5"
217
Item6.

Mobilehome Park Rental Review Board
City of Escondido
September 21, 2023

Page 21 ends

Table 10: Calculation of Adjusted Base Year NOI

Step 3: Calculate the Fair Current Year NOI

As detailed above in the section about the analysis of the 11 factors (see Factor No. 1), 60% of the change in CPI between 2017 and 2021 is 8.601%. Multiplying the $425,638.80 Adjusted Base Year NOI (see Step 2) by the sum of 100% and 8.601% (or 1.08601) results in a Fair Current Year NOI of $462,247.99.

Step 4: Calculate the Actual Current Year NOI

As previously mentioned, the current year for the purposes of this Application is 2021. As shown in Table 11, RSG calculates an Actual Current Year NOI of $408,873.34. Note that Table 7 above shows the breakdown of the 2021 operating expenses.

Table 11: Calculation of Actual Current Year NOI

Step 5: Calculate the Fair NOI Increase

As shown in Table 12, RSG calculates a Fair NOI Increase of $53,374.65 based on the difference between the Fair Current Year NOI (see Step 3) and the Actual Current Year NOI (see Step 4).

Table 12: Calculation of Fair NOI Increase

Base Year NOI 410,449.68$
Annual Income from 2018 Rent Increase 15,189.12$
Adjusted 2017 Base Year NOI 425,638.80$
2021 Rental Income 997,854.04$
2021 Operating Expenses (588,980.70)$
Actual Current Year NOI 408,873.34$
Fair Current Year NOI 462,247.99$
Actual Current Year NOI (408,873.34)$
Fair NOI Increase 53,374.65$
Attachment "5"
218
Item6.

Mobilehome Park Rental Review Board
City of Escondido
September 21, 2023

Page 22 ends

Step 6: Calculate the Fair Monthly Space Rent Increase

RSG divided the Fair NOI Increase of $53,374.65 (see Step 5) by the 129 spaces in the Park and 12 months to calculate a Fair Monthly Space Increase of $34.48 per space per month. Table 13 summarizes all six steps of RSG’s calculation of the just, fair, and reasonable permanent rent increase. Note that the calculation accounts for all 129 spaces in the Park even though the Applicant requested a rent increase for only 105 spaces. RSG’s calculation is based on the equal distribution of the impact of the change in inflation and Park operating expenses among all spaces in a park, regardless of the number of spaces impacted by the Applicant’s rent increase request, the number of spaces subject to the Ordinance, and the current rent of each space. The Applicant has chosen on their own accord not to increase the rents of 10 rent-controlled spaces. For the 14 spaces not subject to the Ordinance, the Applicant has the right to increase those rents via their lease agreements with each of those households.

Table 13: RSG’s Calculation of Just, Fair, and Reasonable Permanent Rent Increase

Calculation of Adjusted Base Year NOI
(A) Base Year NOI (2017): $410,449.68
(B) Income from Last Board-Approved Rent Increase (approved on June 6, 2018) $15,189.12 (C) Adjusted Base Year NOI (2017) (A + B) $425,638.80
Calculation of Fair Current Year NOI
(D) Base Year CPI (2017 HALF2): 284.464
(E) Current Year CPI (2021 HALF2): 325.241
(F) % Change Between Base Year CPI (D) & Current Year CPI (E): 14.335% (G) Percentage of CPI Attributed to Costs Related to Operation of Mobilehome Park 60.000% (H) Adjusted % Change Between Base Year & Current Year CPI (F * G): 8.601% (I) FAIR CURRENT YEAR NOI (C * (100% + H)): $462,247.99 Calculation of Fair NOI Increase
(I) Fair Current Year NOI: $462,247.99
(J) Actual Current Year NOI: $408,873.34
(K) FAIR NOI INCREASE (I - J): $53,374.65
Fair Monthly Space Rent Increase
(K) Fair NOI Increase: $53,374.65
(L) Number of Spaces in Park: 129
(M) Number of Months in Year: 12
2021 JUST, FAIR & REASONABLE RENT INCREASE (per space per month) (K / L / M): $34.48 Attachment "5"
219
Item6.

Mobilehome Park Rental Review Board
City of Escondido
September 21, 2023

Page 23 ends

RSG CALCULATION OF JUST, FAIR, AND REASONABLE TEMPORARY RENT INCREASE

AS REIMBURSEMENT FOR CAPITAL IMPROVEMENT EXPENDITURES

In addition to a $34.48 permanent rent increase, RSG determined that a temporary rent increase is warranted to reimburse the Applicant for $199,430.00 of 2021 capital improvement expenditures related to asphalt resurfacing, sealing, and re- striping. Pursuant to Section 29 - 104(h) of the Ordinance and Section 8(b) of the Guidelines, any capital improvement expenditure must be amortized based on the expected life of the improvement based on standard depreciation tables used to determine tax deductions. Based on the U.S. Internal Revenue Service (“IRS”) Publication 946, which details how to depreciate property for income tax purposes, RSG determined that an appropriate amortization period for road improvements is 15 years.

Additionally, Section 29-104(h) of the Ordinance states that amortization of the cost of the improvement should include interest. RSG assumed that a reasonable interest rate to apply to the capital improvement expenditures in the Application would be the 30-year fixed interest rate on home mortgages as of the date of the submission of the Original Application on September 17, 2021, which was 2.86%

2. The total amount of principal and interest owed on $199,430.00 at 2.86% over 15 years is a total of $245,490.96, or $16,366.06 per year, which is equal to $10.57 per space per month for 1 5 years. Note that the calculation accounts for all 129 spaces in the Park even though the Board has the authority to approve rent increases for only the 115 rent-controlled spaces. The Applicant has the right to recover the remaining reimbursable amount from the 14 spaces that are not subject to rent control via the lease agreements that the Applicant has with each of those households. Assuming the Applicant provides the required 90-day notice of this capital improvement rent increase on December 1 , 2023, the capital improvement rent increase would be collected over the period of March 2024 to February 2039.

EXHIBITS

A. Timeline of Application (Pages to A-1 to A-3)
B. CPI & Freddie Mac Data Relevant to the Application (Pages B-1 to B-3) C. Report of 2017 and 2021 Expenses Removed or Amended by RSG (Pages C-1 to C-6)

2 RSG used the interest rate published by the Federal Home Loan Mortgage Corporation (“Freddie Mac”) in its Primary Mortgage Market Survey (“PMMS”). See Exhibit B for Freddie Mac data.

Attachment "5"
220
Item6.

Date Action
Days Since
Previous Action Notes
9/17/2021 City receives Original Application. N/A
10/14/2021 City issues Incomplete Letter #1. 27
Primary issues noted: Insufficient
documentation of increase in water costs;
additional information needed about capital
improvement expenditures and property tax
expenses
10/21/2021 Applicant responds to Incomplete Letter #1. 7 11/18/2021 City issues Incomplete Letter #2. 28
Primary issues noted: Water expenses
reported by the Applicant were overstated
due to including costs for both Eastwood
Meadows and Mobile Park West
2/18/2022 Applicant submits Revised Application #1. 92
In Revised Application #1, the Applicant
reported significantly lower water expenses
due to City staff pointing out that the Original
Application included water expenses for both
Eastwood Meadows and Mobile Park West.
2/24/2022 City retains RSG to review application. 6
4/6/2022 Applicant submits payment to City for RSG fees. 41 5/25/2022 RSG issues Incomplete Letter #3. 49
The City staff lead for the Application
transitioned from Belinda Rojas to Holly
Nelson after Ms. Rojas' last day with the City
on 4/6/2022.

Primary issues noted: Year-end financial
statements and invoice and proof of
payment for each reported expenses
needed for the base year (2017) and the
final year of RSG's analysis (2020 or 2021)
6/1/2022
City, RSG, and Applicant representatives meet via
Zoom to discuss Incomplete Letter #3. Following
the Zoom meeting, the Applicant emailed the City
and RSG year-end financial statements for 2017 to
2021. 7
6/9/2022 RSG issues Incomplete Letter #4. 8
Incomplete Letter #4 superseded Incomplete
Letter #3, based on the discussion in the
6/1/2022 Zoom meeting.

Primary issues noted: Invoice and proof of
payment for each 2017 and 2021 expense in
10 specified expense categories in which
expenses (1) increased more than inflation
between 2017 and 2021 and (2) increased
more than $5,000 between 2017 and 2021
7/15/2022 Applicant responds to Incomplete Letter #4. 36 7/22/2022 RSG issues Incomplete Letter #5. 7
Primary issues noted: Several
discrepancies between the total expenses
reported on the 2017 and 2021 year-end
financial statements and the invoices
provided
8/18/2022 Applicant responds to Incomplete Letter #5. 27 9/16/2022 RSG issues Incomplete Letter #6. 29
Primary issues noted: Additional information
needed about the 2017 and 2021 utility
income and expenses and capital
improvement expenses; duplicate expenses
Exhibit A: Timeline of Application
Attachment "5"
221
Item6.

Date Action
Days Since
Previous Action Notes
10/19/2022 Applicant responds to Incomplete Letter #6. 33 11/18/2022
RSG notifies Applicant that the application is now
complete. 30
11/23/2022
RSG notifies Applicant that the hearing is tentatively
scheduled for 1/11/23. 5
12/6/2022
RSG emails Applicant about discrepancies in
Application re: the number of spaces affected by
the proposed rent increase and the number of long-
term leases exempt from the City's Ordinance. 13
12/8/2022
Applicant notifies RSG that they would like to
increase the number of spaces affected by the
proposed rent increase. 2
12/14/2022
City notifies Applicant that revising the application
requires a new 30-day review period to deem the
application complete. 6
12/15/2022
Applicant notifies City and RSG that they are
withdrawing Revised Application #1 and that a
revised application is forthcoming. 1
1/9/2023 Applicant submits Revised Application #2. 25
In Revised Application #2, the Applicant
increases the number of spaces affected by
the proposed increase from 81 to 95 and
reduces the number of spaces subject to a
long-term lease from 43 to 24.
1/30/2023 RSG issues Incomplete Letter #7. 21
Primary issues noted: Reimbursements
were owed to five households that the
Applicant had stated were exempt from rent
control that were subject to rent control due
to executing their long-term leases after
2/13/2020
2/3/2023 Applicant submits Revised Application #3. 4
In Revised Application #3, the Applicant
increases the number of spaces affected by
the proposed increase from 95 to 100.
3/3/2023
RSG emails Applicant clarifying questions about
Revised Application #3. 28
3/6/2023 Applicant responds to RSG's clarifying questions. 3 3/24/2023 RSG issues Incomplete Letter #8. 18
Primary issues noted: Discrepancies
between information provided in the
Application and the 2022 Mobilehome Park
Annual Rent Control Survey provided for the
Park
4/17/2023 Applicant responds to Incomplete Letter #8. 24 5/17/2023
RSG emails Applicant clarifying questions about
their response to Incomplete Letter #8. 30
5/18/2023 Applicant responds to RSG's clarifying questions. 1 6/14/2023 RSG issues Incomplete Letter #9. 27
Primary issues noted: Final corrections
needed to the Application to prepare it for
public viewing (e.g., correction of park
owner name, completion of blank sections,
final versions of 2017 and 2021 year-end
financial statements)
7/24/2023 Applicant submits Revised Application #4. 40
In Revised Application #4, the Applicant
increases the number of spaces affected by
the proposed increase from 100 to 104 and
reduces the number of spaces subject to a
long-term lease from 24 to 15.

Attachment "5"
222
Item6.

Date Action
Days Since
Previous Action Notes
8/7/2023 RSG issues Incomplete Letter #10. 14
Primary issues noted: Additional corrections
needed to the Application to prepare it for
public viewing (e.g., corrections to the total
property tax and water expenses reported;
corrected 2021 year-end financial
statements)
8/11/2023
Applicant emails electronic version of Revised
Application #5 for City/RSG's preliminary review. 4
8/18/2023
RSG emails Applicant about one minor correction
needed to Revised Application #5 and two additional
invoices needed. 7
8/21/2023
Applicant emails updated electronic version of
Revised Application #5 for City/RSG's preliminary
review. 3
8/24/2023
RSG notifies Applicant that electronic version of
Revised Application #5 needs no further
corrections. 3
8/28/2023
Applicant submits hard copy of Revised Application
#5. 4
In Revised Application #5, the Applicant
increases the number of spaces affected by
the proposed increase from 104 to 105 and
reduces the number of spaces subject to a
long-term lease from 15 to 14.
8/28/2023
RSG notifies Applicant that the application is now
complete. 0
11/1/2023 Board holds hearing. 65
The 60-day deadline for the Board to hold a
hearing was October 27, 2023. The City
initially scheduled the hearing on October
25, 2023, which was before the deadline.

However, the Applicant had a scheduling
conflict on October 25, 2023, and requested
via an email dated September 14, 2023, that
the hearing be postponed to November 1,
2023.

TOTAL 775
Attachment "5"
223
Item6.

Exhibit B: CPI and Freddie Mac Data
Source: Bureau of Labor Statistics Generated on: September 18, 2023 (04:40:04 PM) Series Id:

Series Title:

Area:

Item:

Base Period:

Years:

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 2013 260.317 258.955 261.679
2014 265.145 265.251 265.039
2015 269.436 267.346 271.526
2016 274.732 272.628 276.837
2017 285.961 283.012 281.561 284.464
2018 288.331 290.810 289.243 295.185 295.883 293.858 292.547 290.076 295.018 2019 295.761 297.226 300.303 299.333 301.033 301.520 299.433 298.147 300.718 2020 302.564 302.589 301.317 305.611 304.443 306.334 303.932 302.040 305.823 2021 307.688 315.035 317.141 323.906 324.138 326.422 319.761 314.282 325.241 2022 332.990 339.852 343.502 347.462 350.721 348.145 344.416 339.886 348.945 2023 354.453 358.026 361.339 362.412 358.515
https://data.bls.gov/timeseries/CUURS49ESA0?amp%253bdata_tool=XGtable&output_view=data&include_graphs=true San Diego-Carlsbad, CA
All items
1982-84=100
2013 to 2023
CPI for All Urban Consumers (CPI-U)
Original Data Value
CUURS49ESA0
Not Seasonally Adjusted
All items in San Diego-Carlsbad, CA, all urban
Attachment "5"
224
Item6.

U.S. 30 yr U.S. 15 yr U.S. 5/1 ARM U.S. 30 yr FRM/
30 yr fees & 15 yr fees & 5/1 fees & 5/1 ARM 5/1 ARM
Week FRM points FRM points ARM points margin spread
1/7/21 2.65 0.70 2.16 0.60 2.75 0.30 2.75 -0.10
1/14/21 2.79 0.70 2.23 0.70 3.12 0.40 2.75 -0.33
1/21/21 2.77 0.70 2.21 0.60 2.80 0.40 2.75 -0.03
1/28/21 2.73 0.70 2.20 0.60 2.80 0.30 2.75 -0.07
2/4/21 2.73 0.70 2.21 0.60 2.78 0.30 2.75 -0.05
2/11/21 2.73 0.70 2.19 0.60 2.79 0.20 2.75 -0.06
2/18/21 2.81 0.70 2.21 0.70 2.77 0.20 2.75 0.04
2/25/21 2.97 0.60 2.34 0.60 2.99 0.10 2.75 -0.02
3/4/21 3.02 0.60 2.34 0.70 2.73 0.30 2.75 0.29
3/11/21 3.05 0.60 2.38 0.60 2.77 0.30 2.75 0.28
3/18/21 3.09 0.70 2.40 0.70 2.79 0.30 2.75 0.30
3/25/21 3.17 0.70 2.45 0.60 2.84 0.20 2.75 0.33
4/1/21 3.18 0.70 2.45 0.60 2.84 0.30 2.75 0.34
4/8/21 3.13 0.70 2.42 0.60 2.92 0.10 2.75 0.21
4/15/21 3.04 0.70 2.35 0.70 2.80 0.40 2.75 0.24
4/22/21 2.97 0.70 2.29 0.60 2.83 0.30 2.75 0.14
4/29/21 2.98 0.70 2.31 0.70 2.64 0.30 2.75 0.34
5/6/21 2.96 0.60 2.30 0.60 2.70 0.30 2.75 0.26
5/13/21 2.94 0.70 2.26 0.60 2.59 0.30 2.75 0.35
5/20/21 3.00 0.60 2.29 0.70 2.59 0.30 2.75 0.41
5/27/21 2.95 0.70 2.27 0.60 2.59 0.20 2.75 0.36
6/3/21 2.99 0.60 2.27 0.60 2.64 0.20 2.75 0.35
6/10/21 2.96 0.70 2.23 0.60 2.55 0.20 2.75 0.41
6/17/21 2.93 0.70 2.24 0.60 2.52 0.30 2.75 0.41
6/24/21 3.02 0.70 2.34 0.70 2.53 0.30 2.75 0.49
7/1/21 2.98 0.60 2.26 0.70 2.54 0.30 2.75 0.44
7/8/21 2.90 0.60 2.20 0.70 2.52 0.20 2.75 0.38
7/15/21 2.88 0.70 2.22 0.60 2.47 0.30 2.75 0.41
7/22/21 2.78 0.70 2.12 0.70 2.49 0.40 2.75 0.29
7/29/21 2.80 0.70 2.10 0.70 2.45 0.30 2.75 0.35
8/5/21 2.77 0.60 2.10 0.60 2.40 0.40 2.75 0.37
8/12/21 2.87 0.70 2.15 0.70 2.44 0.30 2.75 0.43
8/19/21 2.86 0.70 2.16 0.60 2.43 0.30 2.75 0.43
8/26/21 2.87 0.60 2.17 0.60 2.42 0.20 2.75 0.45
9/2/21 2.87 0.60 2.18 0.60 2.43 0.30 2.75 0.44
9/9/21 2.88 0.70 2.19 0.60 2.42 0.30 2.75 0.46
9/16/21 2.86 0.70 2.12 0.60 2.51 0.10 2.75 0.35
9/23/21 2.88 0.70 2.15 0.60 2.43 0.30 2.75 0.45
9/30/21 3.01 0.70 2.28 0.60 2.48 0.30 2.75 0.53
10/7/21 2.99 0.70 2.23 0.70 2.52 0.30 2.75 0.47
10/14/21 3.05 0.70 2.30 0.70 2.55 0.20 2.75 0.50
10/21/21 3.09 0.70 2.33 0.70 2.54 0.30 2.75 0.55
10/28/21 3.14 0.70 2.37 0.70 2.56 0.30 2.75 0.58
11/4/21 3.09 0.70 2.35 0.60 2.54 0.30 2.75 0.55
11/10/21 2.98 0.70 2.27 0.60 2.53 0.40 2.75 0.45
11/18/21 3.10 0.70 2.39 0.60 2.49 0.30 2.75 0.61
11/24/21 3.10 0.70 2.42 0.70 2.47 0.30 2.75 0.63
12/2/21 3.11 0.60 2.39 0.60 2.49 0.30 2.75 0.62
12/9/21 3.10 0.70 2.38 0.70 2.45 0.30 2.75 0.65

PRIMARY MORTGAGE MARKET SURVEY
®
Summary page with all rate types - U.S. averages
Attachment "5"
225
Item6.
12/16/21 3.12 0.60 2.34 0.70 2.45 0.30 2.75 0.67
12/23/21 3.05 0.70 2.30 0.70 2.37 0.40 2.75 0.68
12/30/21 3.11 0.70 2.33 0.70 2.41 0.50 2.75 0.70
Source: https://www.freddiemac.com/pmms
Although Freddie Mac attempts to provide reliable, useful information in this document Freddie Mac does not guarantee that the information is accurate, current or suitable for any particular purpose. Estimates contained in this document are those of Freddie Mac currently and are subject to change without notice.

Attachment "5"
226
Item6.

Exhibit C:

Explanation of RSG Adjustments to Expenses Included in Application

2017 EXPENSES

1. Gas. Decreased $25,123.65. The Applicant reports $25,123.65 of 2017 gas expenses, all of which RSG disallows from the calculation of the just, fair, and reasonable rent increase warranted. The Applicant states that Park residents are billed by the Park for gas based on their individual meter readings. For gas usage in 2017, the Applicant reported $41,567.20 of income from residents, which exceeds the $25,123.65 of expenses. Since the Applicant was already reimbursed by the Park residents for more than 100% of the 2017 gas expenses, RSG excludes 100% of the gas expenses from the rent increase calculation. Note that RSG considers it reasonable that the amount of income collected from residents for 2017 gas usage exceeds the amount of expenses billed by the gas company (although RSG cannot confirm whether the residents were charged the correct rates). San Diego Gas & Electric Company (“SDG&E”) supplies natural gas to the Park .

The California Public Utilities Commission (“CPUC”), which regulates natural gas utility rates and services provided by SDG&E, allows rates to include a differential to be collected from Park residents that are to be used for system maintenance.

2. Gas System Repair. Decreased $12,198.17. The Applicant reports $12,198.17 of 2017 gas system repair expenses, all of which RSG disallows from the calculation of the just, fair, and reasonable rent increase warranted. As stated in the previous bullet point, the amount of income collected from residents for 2017 gas usage exceeds the amount of expenses billed by the gas company . The differential is to be used for system maintenance, such as the $12,198.17 of 2017 gas system repair expenses.

3. Electricity. Decreased $114,938.04. The Applicant reports $142,396.62 of 2017 electricity expenses, $114,938.04 of which RSG disallows from the calculation of the just, fair, and reasonable rent increase warranted. The Applicant states that Park residents are billed by the Park for electricity based on their individual meter readings. For electricity usage in 2017, the Applicant reported $114,938.04 of income from residents and stated that the remaining expenses were electricity costs for common areas. RSG excluded from the rent increase calculation the $114,938.04 of electricity expenses that was already reimbursed by the Park residents.

4. Electricity. Decreased $63.74. While the Applicant reports $142,396.62 of 2017 electricity expenses, RSG calculates that the expenses totaled $142,332.88 ($63.74 lower) based on the bills that the Applicant provided to RSG. RSG excluded from the rent increase calculation the unsubstantiated amount of $63.74. The table below shows a breakdown of RSG’s calculation of the $142,332.88 total.

Billing Period/
Expense
Description
Total
Invoiced
Amount
Percentage
Allocated to
Eastwood Meadows
Amount Allocated
to Eastwood
Meadows
December 6, 2016 to
January 6, 2017 $27,634.61 33.3% $9,211.54
Fee for Pre- arranged
Outage $1,465.00 100.0% $1,465.00
January 6, 2017 to
February 6, 2017 $25,707.61 33.3% $8,569.20
Attachment "5"
227
Item6.

February 6, 2017 to
March 8, 2017 $21,423.96 33.3% $7,141.32
March 8, 2017 to April
6, 2017 $7,718.71 33.3% $2,572.90
April 6, 2017 to May 8,
2017 $24,056.16 33.3% $8,018.72
May 8, 2017 to June 7,
2017 $25,105.11 33.3% $8,368.37
Cost of New Meters $1,067.67 100.0% $1,067.67
June 7, 2017 to July 7,
2017 $56,119.15 33.3% $18,706.38
July 7, 2017 to August
7, 2017 $85,460.02 33.3% $28,486.67
August 7, 2017 to
September 6, 2017 $71,071.01 33.3% $23,690.34
September 6, 2017 to
October 5, 2017 $21,311.19 33.3% $7,103.73
October 5, 2017 to
November 3, 2017 $30,522.82 33.3% $10,174.27
November 3, 2017 to
December 5, 2017 $23,270.28 33.3% $7,756.76
TOTAL $421,933.30 $142,332.88

5. Water. Decreased $139.19. The Applicant reports $16,921.16 of 2017 water expenses, $139.19 of which RSG disallows from the calculation of the just, fair, and reasonable rent increase warranted. The Applicant states that only a small number of Park residents had water meters in 2017 and were billed based on their individual meter readings. For the remaining Park residents (which were the majority), the cost of water was included in their base rent. For water usage in 2017, the Applicant reported $ 139.19 of income from residents. RSG excluded from the rent increase calculation the $139.19 of water expenses that was already reimbursed by Park residents.

6. Sewer. Decreased $ 33,696.45. The Applicant reports $34,863.42 of 2017 sewer expenses, $33,696.45 of which RSG disallows from the calculation of the just, fair, and reasonable rent increase warranted. For sewer in 2017, the Applicant reported $33,696.45 of income from residents. RSG excluded from the rent increase calculation the $33,696.45 of sewer expenses that was already reimbursed by the Park residents.

7. Trash. Decreased $22,420.74. The Applicant reports $31,840.53 of 2017 trash expenses, $22,420.74 of which RSG disallows from the calculation of the just, fair, and reasonable rent increase warranted because the Applicant reported $22,420.74 of income from residents for trash in 2017 . RSG excluded from the rent increase calculation the $22,420.74 of trash expenses that was already reimbursed by the Park residents.

8. Trash. Decreased $202.58. RSG disallowed $202.58 because the amount of 2017 trash expenses reported by the Applicant included two duplicate expenses in the amount of $202.58, each related to a 2/28/2017 Escondido Disposal Inc. invoice.

9. Depreciation. Decreased $16,594.00. RSG disallowed $16,594.00 of depreciation based on the standard practice of excluding depreciation from calculations of just, fair, and Attachment "5"
228
Item6.
reasonable rent increases for mobilehome parks due to depreciation being a non- cash expense. The ordinances of some communities (City of Oceanside for example) expressly prohibit the inclusion of depreciation in calculations of just, fair, and reasonable rent increases for mobilehome parks.

TOTAL 2017 EXPENSES REPORTED BY APPLICANT: $700,017.88 TOTAL ADJUSTMENTS BY RSG: ($225,376.56)
TOTAL ADJUSTED 2017 EXPENSES PER RSG: $474,641.32

2021 EXPENSES

1. Gas. Decreased $31,987.84. The Applicant reports $31,987.84 of 2021 gas expenses, all of which RSG disallows from the calculation of the just, fair, and reasonable rent increase warranted. The Applicant states that Park residents are billed by the Park for gas based on their individual meter readings. For gas usage in 2021, the Applicant reported $57,858.88 of income from residents, which exceeds the $31,987.84 of expenses. Since the Applicant was already reimbursed by the Park residents for more than 100% of the 2017 gas expenses, RSG excludes 100% of the gas expenses from the rent increase calculation. Note that RSG considers it reasonable that the amount of income collected from residents for 20 21 gas usage exceeds the amount of expenses billed by the gas company (although RSG cannot confirm whether the residents were charged the correct rates). SDG&E supplies natural gas to the Park. The CPUC, which regulates natural gas utility rates and services provided by SDG&E , allows rates to include a differential to be collected from Park residents that are to be used for system maintenance.

RSG notes that we recategorized $1,368.80 from the Water expense category to the Gas category (more details are provided under #4 below), which increases the total 2021 gas expenses to $33,356.64. However, this increased amount is still less than the $57,858.88 of income collected from residents for 2021 gas usage.

2. Gas System Repair. Decreased $1,481.07. The Applicant reports $1,481.07 of 2021 gas system repair expenses, all of which RSG disallows from the calculation of the just, fair, and reasonable rent increase warranted. As stated in the previous bullet point, the amount of income collected from residents for 2021 gas usage exceeds the amount of expenses billed by the gas company. The differential is to be used for system maintenance, such as the $1,481.07 of 2021 gas system repair expenses.

3. Electricity. Decreased $155,312.91. The Applicant reports $177,027.99 of 2021 electricity expenses, $155,312.91 of which RSG disallows from the calculation of the just, fair, and reasonable rent increase warranted. The Applicant states that Park residents are billed by the Park for electricity based on their individual meter readings. For electricity usage in 2017, the Applicant reported $155,312.91 of income from residents and stated that the remaining expenses were electricity costs for common areas. RSG excluded from the rent increase calculation the $155,312.91 of electricity expenses that was already reimbursed by the Park residents.

4. Electricity. Decreased $16,832.39. While the Applicant reports $177,027.99 of 2017 electricity expenses, RSG calculates that the expenses totaled $160,195.60 ($16,832.39 lower) based on the bills that the Applicant provided to RSG. RSG excluded from the rent Attachment "5"
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increase calculation the unsubstantiated amount of $16,832.39. The table below shows a breakdown of RSG’s calculation of the $160,195.60 total.

Billing Period/
Expense
Description
Total
Invoiced
Amount
Percentage
Allocated to
Eastwood Meadows
Amount Allocated
to Eastwood
Meadows
Dec 6, 2020 to Jan 6,
2021 $40,050.03 33.3% $13,350.01
Jan 6, 2021 to Feb 4,
2021 $34,152.94 33.3% $11,384.31
Feb 4, 2021 to Mar 8,
2021 $39,430.19 33.3% $13,143.40
Mar 8, 2021 to Apr 9,
2021 $38,781.06 33.3% $12,927.02
Apr 9, 2021 to May 7,
2021 $35,643.06 33.3% $11,881.02
May 8, 2021 to June 8,
2021 $40,769.02 33.3% $13,589.67
June 9, 2021 to Jul 8,
2021 $58,092.80 33.3% $19,364.27
July 9, 2021 to Aug 7,
2021 $50,574.81 33.3% $16,858.27
Aug 7, 2021 to Sep 7,
2021 $48,157.90 33.3% $16,052.63
Sep 8, 2021 to Oct 6,
2021 $58,854.42 33.3% $19,618.14
Oct 7, 2021 to Nov 5,
2021 $36,080.57 33.3% $12,026.86
TOTAL $480,586.80 $160,195.60

5. Water. Decreased $5,755.99. The Applicant reports $78,224.02 of 2021 water expenses, $5,755.99 of which RSG disallows from the calculation of the just, fair, and reasonable rent increase warranted because of reimbursement already received from Park residents.

The Applicant states that only a small number of Park residents had water meters in 2021 and were billed based on their individual meter readings. For the remaining Park residents (which were the majority), the cost of water was included in their base rent. For water usage in 2021, the Applicant reported $5,755.99 of income from residents. RSG excluded from the rent increase calculation the $5,755.99 of water expenses that was already reimbursed by Park residents.

6. Water. Decreased $1,368.80. RSG recategorized $1,368.80 from the Water expense category to the Gas category. The water expenses include a Pacific States Utility Company invoice dated 3/05/2021 for $2,099.46, which includes $1,152.00 for gas meters, $613.92 for water meters, $196.68 for shipping, and $136.86 for sales taxes. RSG reclassified the gas meters expense of $1,152.00 to the Gas expense category. RSG also split the shipping expense and sales taxes between the Water and Gas expense categories in proportion to the cost of the meters (35% for Water – $116.74; 65% for Gas – $216.80).

Attachment "5"
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7. Water. Increased $901.87. For the City of Escondido invoice due November 5, 2021, the Applicant categorized 29% of the $3,109.89 of “Water Service” expenses ($901.87) to the Eastwood Meadows Sewer expense category. RSG recategorized this expense to the Water expense category.

8. Water. Decreased $4,481.79. RSG disallowed $ 4,481.79 because the amount of 2021 water expenses reported by the Applicant included two duplicate expenses in the amount of $4,481.79 each related to a 7/29/2021 and 8/30/2021 City of Escondido invoices.

9. Sewer. Decreased $ 58,215.14. The Applicant reports $64,578.62 of 2017 sewer expenses, $58,215.14 of which RSG disallows from the calculation of the just, fair, and reasonable rent increase warranted. For sewer in 2021, the Applicant reported $58,215.14 of income from residents. RSG excluded from the rent increase calculation the $58,215.14 of sewer expenses that was already reimbursed by the Park residents.

10. Sewer. Decreased $901.87. For the City of Escondido invoice due November 5, 2021, the Applicant categorized 29% of the $3,109.89 of “Water Service” expenses ($901.87) to the Eastwood Meadows Sewer expense category. RSG recategorized this expense to the Water expense category.

11. Sewer. Decreased $3,640.48. RSG disallowed $ 3,640.48 because the amount of 2021 sewer expenses reported by the Applicant included two duplicate expenses in the amount of $4,481.79 each related to a 7/29/2021 and 8/30/2021 City of Escondido invoices.

12. Trash. Decreased $34,386.66. The Applicant reports $37,837.04 of 2021 trash expenses, $34,386.66 of which RSG disallows from the calculation of the just, fair, and reasonable rent increase warranted. For trash in 2021, the Applicant reported $34,386.66 of income from residents. RSG excluded from the rent increase calculation the $34,386.66 of trash expenses that was already reimbursed by the Park residents.

13. Street Patching & Repairs . Decreased $199,430.00. The Applicant reports $ 199,430.00 of 2021 street patching and repairs expenses, all of which RSG disallows from the calculation of the permanent just, fair, and reasonable rent increase warranted. The expenses are for asphalt replacement, sealcoating, and re-striping, which RSG considers to be capital improvement expenses. Section 29 -101 of the City of Escondido’s Mobilehome Rent Control Ordinance defines capital improvements as “the installation of new improvements and facilities and/or the replacement or reconstruction of existing improvements and facilities which consist of more than ordinary maintenance and/or repairs.” Pursuant to Section 29-104(h) of the Ordinance, RSG excluded these expenses from the calculation of the permanent rent increase and recommends that the Mobilehome Park Rental Review Board approve a separate temporary rent increase that does not continue beyond the time necessary for reasonable amortization of t he cost of those improvements.

14. Depreciation. Decreased $34,472.00. RSG disallowed $34,472.00 of depreciation based on the standard practice of excluding depreciation from calculations of just, fair, and reasonable rent increases for mobilehome parks due to depreciation being a non -cash expense. The ordinances of some communities (City of Oceanside for example) expressly prohibit the inclusion of depreciation in calculations of just, fair, and reasonable rent increases for mobilehome parks.

Attachment "5"
231
Item6.

TOTAL 2021 EXPENSES REPORTED BY APPLICANT: $1,136,345.77 TOTAL ADJUSTMENTS BY RSG: ($547,365.07) TOTAL ADJUSTED 2021 EXPENSES PER RSG: $588,980.70
Attachment "5"
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DATE:

TO:

FROM:

October 10, 2023

HONORABLE CHAIRMAN AND MEMBERS OF THE RENT

CONTROL BOARD
:MONICA PINAGLIA, CODE COMPLIANCE SUPERVISOR ;fl{)
\
SUBJECT: EASTWOOD MEADOWS MHP- RENT CONTROL
Eastwood Meadows Mobile Home Park was inspected on October 10, 2023 with the lighting inspection conducted the prior evening. The code compliance inspection is required as part of the mobile home park's rent control application process. There were seven general park violations and no lighting violations found and noted in the attached inspection report.

The resident meeting was held on October 9, 2023 and was attended by sixty-nine residents, four park management staff, three city employees and one consultant. There were no code case issues brought forth in the resident meeting.

Cc: Christopher Vl. McKinney - Deputy City Manager
Danielle Lopez - Manager of the Housing and Neighborhood Services Division Attachment "6"
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Attachment "6"
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Attachment "6"
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Attachment "6"
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STAFF REPORT

November 1, 2023
File Number 0250-55

SUBJECT

TOW COMPANY APPEALS HEARING

DEPARTMENT

POLICE DEPARTMENT

RECOMMENDATION
Request the City Council approve Resolution Nos. 2023-138 and 2023-139 denying the appeals of Quality East County Inc./Quality Towing East Quality Towing (“Quality Towing”) and Tow and Transport Inc./Roadway Towing & Recovery (“Roadway Towing”) challenging their non-selection for a City towing contract.

Staff Recommendation: Approval (Police Department: Edward Varso, Chief of Police ) Presenter: Edward Varso, Chief of Police

FISCAL ANALYSIS
No fiscal impact.

PREVIOUS ACTION
On June 21, 2023, the City Council adopted Resolution No. 2023-75 authorizing the Mayor to execute Police Tow Service contracts with Al’s Towing, Inc.; A-Z Enterprises, Inc.; Allied Gardens Towing, Inc.; and Johnathan’s Towing, Inc. to provide police tow services for the City of Escondido.

BACKGROUND
Under contract with the City, local tow companies provide Police towing, impound and referral services.

Police tows and impounds include towing of vehicles at the direction of the Police Department where the consent of the vehicle owner is not required under existing law, including the towing of motor vehicles which are illegally parked, abandoned, are evidence of a crime, or are otherwise subject to the authority of the Police Department. Referral tows include vehicles towed by the Police Department at the request of the vehicle owner. The previous contracts expired on June 30, 2023.

In April 2023, City staff requested proposals from local companies for a new contract to begin on July 1, 2023 (Attachment “1”). Proposals were due on May 11, 2023, and six companies responded to the City’s 237
Item7.

request, including Al’s Towing, Inc.; A-Z Enterprises, Inc.; Allied Gardens Towing, Inc.; Johnathan’s Towing, Inc.; Quality Towing; and Roadway Towing.

Quality East County, Inc. dba Quality Towing submitted their responsive application on May 8, 2023 (Attachment “2”) and Tow & Transport Inc., dba Roadway Towing and Recovery submitted their responsive application on April 13, 2023 (Attachment “3”). Upon receipt of the responses, the Police Department established a multi-disciplinary inspection team represented by City personnel. This team conducted on-site inspections, financial record review, and evaluated submittals to determine compliance with the RFP documents. On -site inspections included evaluation of tow co mpanies buildings and lots, and a review of vehicles listed against specific criteria listed in the RFP. All proposals were evaluated in strict accordance with the evaluation criteria set forth in the RFP.

Based on the inspections and review of the information submitted, the following companies entered into contracts with the City of Escondido:

 Al’s Towing, Inc.
 A-Z Enterprises, Inc.
 Allied Gardens Towing, Inc.
 Johnathan’s Towing, Inc.

The RFP include criteria and a points system to help the City select the tow companies best able to meet the services required by the City. The four selected vendors scored above 97 points. Quality Towing and Roadway scored 67 and 62 points respectively.

Escondido Municipal Code Chapter 27 provides the process to select towing companies. The municipal code authorizes the chief of police, when selecting a company or companies to provide towing services, to consider a company's proposed quality of service, potential income to the city, the length and nature of the applicant's experience, the applicant's financial responsibility, and any other factor which will safeguard the public interest. RFP No. 23-17 initiated the selection process for towing vendors eff ective July 1, 2023 and provided prospective vendors with information and requirements to enable the vendor to meet City standards. RFP responses deviating in any way from the requirements and submission formats may be declared non-responsive at the City’s discretion. The RFP General Conditions read in part:

6. Inaccuracies or Misinterpretations: Subject to the City’s sole discretion, the City may terminate a prospective vendor from the RFP process or terminate any agreement with the Prospective vendor if t he City determines that said Prospective vendor has: (i) made a material misstatement, (ii) made a material misrepresentation, or (iii) provided materially inaccurate information.

9. Right to Reject Proposal.: The City reserves the right to reject any or all proposals, to waive any non -material irregularities or combination of 238
Item7.

items. The City is not obligated to explain or justify its selection or rejection of any Prospective vendor.

14. City Provisions to Prevail: The terms of this RFP and the terms of any agreement resulting from this RFP shall govern the services. Any standard terms and conditions of the successful vendor shall not be acceptable to the City unless expressly agreed to by the City by separate document. The City reserves the right to rej ect a proposal containing unacceptable conditions as non -responsive as a condition of evaluation or award of the proposal.

On June 22, 2023, the Escondido Police Chief wrote to the non -selected vendors and provided the inspection details (Attachments “5” and “6”). On June 28 and 29, 2023, both Quality Towing and Roadway appealed the decision. The appeal letters are attached to this Staff Report as Attachments “7” and “8”.

Although the City’s understanding that consideration of information provided after submission deadline is not appropriate, no new information provided contradict ed the information obtained by the Chief of Police during the inspection and selection process. Quality Towing’s June 28,2023, 110 page letter (Attachment “9”) emphasized the many areas of compliance with City requirements but failed to address the lack of information or the facility shortfalls identified during the site inspection.

In his appeal, President of Roadway Towing, Frannk Khati, has asked for an independent review of the inspection. The City’s process does not provide for such a remedy. On the day of the City inspection, the Roadway Towing facility did not meet the City standards and Roadway Towing could not provide the inspectors with information required and listed in the RFP.

However, the Chief of Police individually interviewed each member of the inspection team and reviewed all available documents. Based on the evidence that was provided, the Escondido Chief of Police remains convinced that he selected the best four vendors, and the Quality Towing and Roadway Towing did not meet all of the City’s objective and subjection evaluation criteria.

If approved by your action today, additional contracts will not be offered to Qua lity Towing or Roadway Towing.

RESOLUTIONS
a. Resolution No. 2023-138
b. Resolution No. 2023-139

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Item7.

ATTACHMENTS
a. Attachment “1 – Notice of Request for Proposals (“RFP”) No. 232-17 – Police Tow, Impound, and Referral Tow Services dated April 12, 2023.
a. EXHIBIT A to RFP No. 23-17 – Police Tow, Impound, and Referral Tow Services, Sample Two Service Agreement [please combine with item a]
b. Attachment “2” – Quality East County, Inc. dba Quality Towing RFP Application dated May 8, 2023.
c. Attachment “3” –Tow & Transport Inc ., dba Roadway Towing and Recovery RFP Application dated April 13, 2023.
d. Attachment “4” – Mattia Law letter dated June 21, 2023, Re: Notice of Request for Proposals (“RFP”) No. 23-17 – Police Tow, Impound and Referral Tow Services on behalf of Quality East County, Inc. [Recommend link because of graphics and photos. e. Attachment “5” – Escondido Police Chief letter to Quality East County Inc. dated June 22, 2023 f. Attachment “6” – Escondido Police Chief letter to Tow & Tow Transport dated June 22, 2023 g. Attachment “7” – Application to Appeal a Decision to the City Council, Applicant Quality East County Inc. dated June 28, 2023
h. Attachment “8” – Application to Appeal a Decision to the City Council, Applicant Frank Khati, dated June 27, 2023.
i. Attachment “9” –Quality Towing, Quality East County, Inc, letter dated June 28, 2023 re Appeal Letter RFP No. 23-17 _ Police Tow, Impound, and Referral Tow Services dated June 28, 2023

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RESOLUTION NO. 2023-138

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA , DENYING THE APPEAL OF
QUALITY EAST COUNTY INC./QUALITY TOWING
WHEREAS, Escondido Municipal Code Chapter 27 , Towing Services, provides a process for the Escondido Police Department to provide a fair and impartial means of selecting towing companies to provide such services to the police department; and
WHEREAS, Escondido Municipal Code Section 27-3 gives the Escondido Police Chief the discretion to select a company or companies to provide towing service; and WHEREAS, on April 12, 2023, the City of Escondido released Request For Proposal (“RFP”) No. 23- 17 asking for qualified vendors to submit proposals to provide police tow, i mpound, and referral tow services for the City of Escondido; and
WHEREAS, RFP No. 23 -17 included a sample towing contract with 25 pages of subjective and objective standards for potential vendors to meet , and evaluation criteria to help the City select tow companies that will be able to meet or exceed the services required by the City; and WHEREAS, RFP No. 23 -17 includes a City reservation of the right to accept or reject any and all proposals and the City has sole discretion to terminate a vendor from the process if it made a misstatement, misrepresentation, or inaccurate information occurs; and WHEREAS, the City of Escondido received six timely submissions in response to RFP No. 23-17 by the May 11, 2023 deadline; and
WHEREAS, the Escondido Police Department conducted site inspections at each facility and evaluated each proposal based on the criteria listed in the RFP No. 23-17; and 241
Item7.

WHEREAS, using the criteria in the RFP the Escondido Police Chief selected the following four vendors: A-Z Enterprises, Inc., Allied Gardens Towing, Al’s Towing, and Johnathan’s Towing; and WHEREAS, the Escondido City Council authorized four tow contracts for vendors recommended by the Escondido Chief of Police on June 21, 2023; and
WHEREAS, Quality East County Inc. / Quality Towing filed a timely appeal of the contract decision with the City Clerk on June 28, 2023; and
WHEREAS, the City Council has reviewed the Escondido Police Department’s reasons for non - selection of Quality East County Inc./Quality Towing, the administrative record, the appellant’s evidence, and the testimony presented , and f inds that the Escondido Chief of Police complied with Escondido Municipal Code Section 27-3 and did not abuse his discretion when he did not select Quality East County Inc./Quality Towing to provide towing services.

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 denies the Quality East County Inc./Quality Towing appeal. 242
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RESOLUTION NO. 2023-139

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA , DENYING THE APPEAL OF
TOW AND TRANSPORT, INC./ ROADWAY TOWING
WHEREAS, Escondido Municipal Code Chapter 27 , Towing Services, provides a process for the Escondido Police Department to provide a fair and impartial means of selecting towing companies to provide such services to the police department; and
WHEREAS, Escondido Municipal Code Section 27-3 gives the Escondido Police Chief the discretion to select a company or companies to provide towing services; and WHEREAS, on April 12, 2023, the City of Escondido released Request For Proposal (“RFP”) No. 23- 17 asking for qualified vendors to submit proposals to provide police tow, impound, and referral tow services for the City of Escondido; and
WHEREAS, RFP No. 23 -17 included a sample towing contract with 25 pages of subjective and objective standards for potential vendors to meet , and evaluation criteria to help the City select tow companies that will be able to meet or exceed the services required by the City; and WHEREAS, RFP No. 23 -17 includes a City reservation of the right to accept or reject any and all proposals and the City has sole discretion to terminate a vendor from the process if it made a misstatement, misrepresentation, or inaccurate information occurs; and WHEREAS, the City of Escondido received six timely submissions in response to RFP No. 23-17 by the May 11, 2023 deadline; and
WHEREAS, the Escondido Police Department conducted site inspections at each facility and evaluated each proposal based on the criteria listed in the RFP No. 23-17; and 243
Item7.

WHEREAS, using the criteria in the RFP, the Escondido Police Chief selected the following four vendors: A-Z Enterprises, Inc., Allied Gardens Towing, Al’s Towing, and Johnathan’s Towing; and WHEREAS, the Escondido City Council authorized four tow contracts for vendors recommended by the Escondido Chief of Police on June 21, 2023; and
WHEREAS, Frank Khati for filed a timely appeal of the contract decision for Tow And Transport, Inc./Roadway Towing with the City Clerk on June 29, 2023; and WHEREAS, the City Council has reviewed the Escondido Police Department’s reasons for non - selection of Tow And Transport, Inc./Roadway Towing and the administrative record and the testimony presented, and find that the Escondido Chief of Police complied with Escondido Municipal Code Section 27-3 and did not abuse his discretion when he did not select Tow And Transport, Inc./Roadway Towing to provide towing services.

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 denies the Tow And Transport, Inc./Roadway Towing appeal. 244
Item7.

Edward Varso Chief of Police
1163 N. Centre City Parkway
Escondido, CA 92026
Phone: 760-839-4721
Fax: 760-745-3432

REQUEST FOR PROPOSALS
April 12, 2023
RE: Notice of Request for Proposals (“RFP”) No. 23 -17 – Police Tow, Impound, and Referral Tow Services
Notice is hereby given that the City of Escondido a California municipal corporation (“City”) is seeking proposals from qualified vendors to provide police tow, impound, and referral tow services for the City on a rotational basis.

Prospective vendors shall provide one original and five copies of the proposal for the evaluation team to review no later than 2 p.m. on May 1 1, 2023 (Submission Deadline). Any proposals received after the Submission Deadline will not be accepted and will be returned unopened to the bidder. There will be no public opening of the proposals. Proposal should be treated as confidential until contract is awarded or recommended for award. Proposals shall be submitted in a sealed envelope or package clearly addressed as follows:

City Clerk
Attn: SEALED PROPOSAL No.23-17- Police Tow, Impound, and Referral Tow Services 201 N. Broadway
Escondido, CA 92025
Questions concerning this RFP must be submitted solely via email to Barbara MarLett, Project Manager at [email protected] no later than 2 p.m. on April 21, 2023 (“Questions Deadline”) . Emails concerning this RFP should state the following in the subject line: b “RFP No. 23-17 – Police Tow, Impound, and Referral Tow Services.” Any questions or comments received after the Questions Deadline will be disregarded. Any communication regarding or relating to this RFP with any City employee or official other than Barbara MarLett is strictly prohibited. A summary of questions from prospective bidders and City responses will be posted on the City’s website at www.escondido.org by 2 p.m. on April 27, 2023.

Each proposal shall be in accordance with specifications, instructions, and information contained in this RFP. The City reserves the right to accept or reject any or all proposals for any reason it deems necessary and to waive defects or irregularities in any proposal at its sole discretion. This Request for Pr oposal does not commit the City of Escondido to award a contract or to pay any costs incurred in the preparation of a response to this request.

Sincerely,
Edward Varso
Chief of Police
Attachment "1"
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City of Escondido
RFP No. 23-17 – Police Tow, Impound, and Referral Tow Services

Page 2 ends

Introduction
The City is seeking proposals from qualified vendors to provide police tow, impound, and referral tow services for the City on a rotational basis. The services shall be performed in accordance with the Draft Tow Services Agreement, which is attached to this RFP as Exhibit A and incorporated herein by this reference. The City is seeking a three-year contract, beginning July 1, 2023 and ending June 30, 2026.

Upon satisfactory performance by the vendor and mutual agreement by both parties, the City shall have the option to extend the initial three-year term for two additional one-year periods.

Background
The City of Escondido encompasses 36.53 square miles and has a population of approximately 151,000 residents. Incorporated in 1888, Escondido is a full-service city that employs the council/manager form of government. Escondido is located in northeastern San Diego County. Escondido is widely recognized as a leader for its community programs, financial management and economic development. Escondido is rich in cultural, economic and geographic diversity. Currently, the Police Department initiates approximately 2,800 police tows and impounds per f iscal year and approximately 800 referral tows per fiscal year.

The City shall evaluate only those responses to this RFP that precisely conform to each of the requirements and submission formats described herein. Resp onses deviating in any way from the requirements and submission formats may be declared non-responsive at the City’s discretion.

Estimated RFP Schedule
The following timeline is the City’s best estimate for the RFP process and is not binding on the City.

RFP Released April 12, 2023
Questions Deadline April 21, 2023
City Answers Posted April 27, 2023
Submission Deadline May 11, 2023
Site Inspections May 22-26, 2023
Contract Approval by City Council June 21, 2023
Attachment "1"
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City of Escondido
RFP No. 23-17 – Police Tow, Impound, and Referral Tow Services

Page 3 ends

Scope of Work
See the Scope of Work included in Exhibit A for further information regarding the services.

Site Inspections of Towing Facilities
Prior to contract award, the City will conduct on-site inspections of each bidder’s business facilities.

Proposal Format
Proposals shall be typed or word-processed and shall meet the following submission criteria:
• Font or type-face of not less than 11 points;
• Bound only by staples; and
• Submitted under the signature of an individual authorized to bind the performance of the applicant.

Proposal Content
Proposals must clearly and concisely state the following information, in order as listed below:

Cover Letter:

A cover letter introducing the company and the individual who will be the contact person. This letter shall briefly state the vendor’s understanding of the work to be performed, and a description of how the company is qualified to perform this contract. The statement shall also confirm the vendor’s understanding and agreement with no exceptions to the standards of conduct and operation including, but not limited to “referral tows”, “on -demand tows”, “Police Tows”, “Impounds”, and other provisions as defined in the Draft Tow Services Agreement in “Exhibit A”

Vendor Background and Experience:

1. Describe your company’s experience in providing the type of services within the past three years that are similar to the Scope of Services delineated in this RFP. The Tow Company responding to this RFP must clearly demonstrate that it has been a corporatio n in good standing and has been in the towing and impound business for at least three years and has record keeping systems in place, proper vehicle storage capacity and the required equipment consistent with contract requirements;

2. Company name, address, local phone number and storage (tow yard) physical location;

3. A brief company/corporate history;

4. Type of business (i.e., corporation, partnership, etc.);

5. Applicable corporate, partnership and/or shareholders’ agreements including any amendments thereto and any other documents and/or state filings, that relate to the existence, good standing and ownership of the business described in number (1) above;

6. Name and phone numbers of three corporate or agency references that can attest to the quality of services provided by the company; and

7. Single local point -of-contact in authority for all issues, such as complaints, contract issues, etc., related to the provision of towing and impound services for the City. A list of each public and private agency your company currently contracts with to provide similar services, including a contact person for reference

Financial Stability:

1. A copy of quarterly financial statements and cash flow statements (audited if available) for the company for the past two years.

2. Pending litigations in which the business or its owners is/are a plaintiff or defendant;

3. A list of any active claims against any other public entity in San Diego County; and

4. List all businesses for which you or your business manager have filed for bankruptc y protection while operating under a towing service contract.

Attachment "1"
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City of Escondido
RFP No. 23-17 – Police Tow, Impound, and Referral Tow Services

Page 4 ends

Project Plan:

1. Describe the company’s approach to fulfill the Scope of Work as defined herein and requirements of Exhibit A;

2. Describe the company’s policies and procedures for proper towing and impounding services;

3. Describe the company’s standards for quality service; and

4. Describe the company’s policies and procedures for handling complaints from the public.

Provide the number of complaints received from the public during the last year.

Facilities and Equipment:

1. Provide a list and a short description of the equipment proposed to be used in the performance of services including, but not limited to vehicles and radio equipment;

2. Describe the company’s storage facilities to be utilized in the performance of services; and

3. Provide detailed description of the facilities’ security.

Certification Form:

A representative with authority to bind the company shall sign and return the Authorized Company Representative Certification Form, which is attached to this RFP as Exhibit B and incorporated herein by this reference.

Other Information:

Additional information or data exceeding the minimum qualifications that the respondent would like the City to consider should be communicated at the end of the proposal.

Proposal Submission Fee
A fee of $2,500 must accompany the proposal made payable to the City of Escondido. If a Tow Company is awarded a contract for a position on the Police Rotation, the fee will be applied to th e first payment required under the contract resulting from this RFP. If a Tow Company’s proposal does not result in the award of a contract, the fee will be refunded in full within 45 days following the City’s notice of decision not to award the contract. In calculating this fee, the City has determined Tow Companies that are awarded contracts on the Police Rotation will bear the expense of all investigations and evaluations that occur during the RFP process.

Evaluation Process
Proposals will be screened and evaluated by an Evaluation Team established by the Chief of Police to determine a firm’s ability to meet or exceed the services required by the City. The evaluation process will include review of the proposal and site visits by the Escondido Police Dep artments Evaluation Team.

Final recommendations from the Police Department will be subject to approval by the City Manager and City Council.

Each proposal and site inspection will be evaluated on a “complies/does not comply” basis to all the requirements contained in this RFP and its accompanying exhibits, attachments, or other documents described or incorporated herein
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City of Escondido
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The evaluation process is intended to help the City select Tow Companies that will be able to meet or exceed the services required by the City. Other relevant criteria that may contribute to the selection process include but are not limited to the following:

Criteria Points
Company’s past performance including, but not
limited to the following:
• City’s past experience with Company’s
contract performance;
• Prior responsiveness to the Police
Department and community concerns;
• Customer service and quality control
standards;
• Company’s code violations including, but
not limited to moving violations known to
City’s Police Department;
• Other agency references for the Applicant
• Complaints from the community regarding
the Applicant

25 Ability to fulfill the service required 35
Adequacy of equipment and facilities 35
Company’s financial stability 5

Tow License Fee
It is the intent of the City to collect a Tow License Fee from each firm, to be apportioned equally among qualified vendors desiring to tow police impounds and referrals. The fee is $100,000 annually per vendor (calculation based on four vendors). The Tow License Fee is payable quarterly, on the first day of July, October, January and April.

Communications with the City
Communication with City employees other than the Project Manager is prohibited, and no City employee or representative other t han the City’s Project Manager is authorized to provide any information or respond to any questions regarding this RFP. Prospective vendors may contact the Project Manager solely via e-mail.

Right to Submitted Material
This RFP does not commit the City of Escondido to award a contract, to pay any costs incurred in the preparation of a contract or proposal, or to procure or contract for, any services. The City reserves the right to accept or reject any or all proposals received as a result of this RF P, to negotiate with qualified vendors, or to amend, cancel (in part or in whole) this RFP if it is in the City’s best interest to do so. All proposals, reports and data submitted to the City shall become the property of the City of Escondido and may not be returned.

Attachment "1"
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Item7.

City of Escondido
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General Conditions

PLEASE READ CAREFULLY. THE FOLLOWING GENERAL TERMS AND CONDITIONS ARE A PART OF ALL PROPOSALS SUBMITTED IN RESPONSE TO THIS RFP AND THE RESULTING CONTRACT.

This RFP as advertised, the specification and requirements detailed in this RFP (including the following General Provisions) are subject to all provisions of the Ordinances of the City of Escondido.

In submitting a proposal in response to this RFP, each prospective vendor agrees to the following general terms and conditions:

1. Public Information: The City reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal in response to this RFP indicates the prospective vendor’s acceptance of all terms a nd conditions contained in this RFP, including all exhibits and attachments hereto, unless clearly and specifically stated otherwise.

2. Confidential Information: Any information deemed confidential or proprietary should be clearly identified by the prospec tive vendor as such. Information identified as confidential or proprietary will be protected and treated with confidentiality to the extent permitted by applicable local, state, and federal law.

3. Addendums: The City reserves the right to amend, alter, o r revoke this RFP at any time. Any modifications, clarification, or additions will be distributed via email as an addendum.

4. Proposal Preparation Cost : The City is not obligated to reimburse any prospective vendor for expenses incurred in preparing propos als in response to this RFP. All Prospective vendors shall bear their own costs, fees, and expenses incurred in preparing proposals in response to this RFP.

5. Withdrawal of Proposal : A prospective vendor may modify or withdraw their proposal, either personally or by written request via email, at any time prior to the Submission Deadline. Such requests should be directed to the City’s Project Manager.

6. Inaccuracies or Misinterpretations: Subject to the Ci ty’s sole discretion, the City may terminate a prospective vendor from the RFP process or terminate any agreement with the Prospective vendor if the City determines that said Prospective vendor has: (i) made a material misstatement, (ii) made a material misrepresentation, or (iii) provided materially inaccurate information.

7. Business License: The successful vendor shall be required to obtain a City of Escondido Business License pursuant to the terms of Exhibit A.

8. Signature: All proposals shall be signed in the name of the prospective vendor and shall bear the original signature in longhand of the persons duly authorized to sign the proposal. Obligations assumed by such signature shall be fulfilled.

9. Right to Reject Proposal : The City reserves the right to reject any or all proposals, to waive any non-material irregularities or information in any proposal, and to accept or reject any items or combination of items. The City is not obligated to explain or justify its selection or rejection of any Prospective vendor. All proposals submitted in response to this RFP shall immediately become property of the City.

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City of Escondido
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10. Right to Conduct Personal Interviews: The City reserves the right to conduct personal interviews or require oral presentations of any or all prospective vendors prior to selection.

11. Right to Request Additional Information: Prospective vendors shall furnish additional information as the City may reasonably require. The City reserves the right to investigate the qualifications of prospective vendors as it deems appropriate.

12. Right to Determine Financial Responsibility and Viability: The City reserves the right to request information pertaining to the financial stability of a prospective vendor to allow an appraisal of a prospective vendor’s current financial condition.

13. Understanding the Services to be Performed: By submitting a proposal in response to this RFP, each prospective vendor certifies that they have fully read and understand this RFP and have full knowledge of the scope, nature, quantity, and quality of services to be performed. Each prospective vendor understands that, if successful, they will be required to enter into a written contract in substantially the same form as Exhibit A.

14. City Provisions to Prevail: The terms of this RFP and the terms of any agreement resulting from this RFP shall govern the services. Any standard terms and conditions of the successful vendor shall not be acceptable to the City unless expressly agreed to by the City by separate document. The City reserves the right to reject a proposal containing unacceptable conditions as non -responsive as a condition of evaluation or award of the proposal.

15. Equal Employment Opportunity: The vendor awarded the project shall comply with all equal employment opportunity provisions of federal, state, and local non -discrimination laws, orders, regulations and guidelines as may be applicable to the vendor and be i n effect during the performance of any agreement resulting from this RFP.

16. Public Services Agreement: Vendors submitting a proposal in response to this RFP shall be prepared to use the City’s standard contract form (Exhibit A) rather than its own contrac t form.

Services may not commence until Agreement for services is executed.

17. Insurance Requirements: The successful vendor must have insurance in accordance with the requirements listed in Exhibit A.

Attachment "1"
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City of Escondido
RFP No. 23-17 – Police Tow, Impound, and Referral Tow Services

Page 8 ends

EXHIBIT A

CITY OF ESCONDIDO

DRAFT TOW SERVICES AGREEMENT DRAFT

Attachment "1"
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EXHIBIT A
to RFP No. 23-17 – Police Tow, Impound, and Referral Tow Services Sample Two Service Agreement

1 CITY OF ESCONDIDO

TOW SERVICES AGREEMENT
This Tow Service Agreement (“Agreement”) is made and entered into as of the last signature date set forth below (“Effective Date”),

Between: CITY OF ESCONDIDO
a California municipal corporation
201 N. Broadway
Escondido, CA 92025
Attn: [name of primary City staff contact]
760-xxx-xxxx
("CITY")

And: [Name]
[Entity Type: e.g., “a California corporation”]
[Street address]
[City, state, zip code]
Attn: [name of contact]
[telephone number]
("TOW COMPANY").
(The CITY and TOW COMPANY each may be referred to herein as a “Party” and collectively as the “Parties.”)

WHEREAS, the Parties desire to enter into this Agreement f or the per formance 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: TOW COMPANY will furnish all of the services described in Attachment A. Attachment A is attached hereto and incorporated by reference.

2. Compensation: The TOW COMPANY will pay the CITY an annual license fee of [$Dollar Amount] payable in four equal portions due on the first day of July, October, January and April during the term of this Agreement. The Compensation is calculated as the total licensing fee of $400,000 for the program, divided by the total number of tow companies providing services . If the number o f tow companies is reduced during the Term , the Compensation stated in this section shall be recalculated based on the foregoing formula at the time the number of tow companies is reduced.

3. Term and Time of Performance: Services pursuant to this Agreement shall commence on July 1, 2023. The term of this Agreement shall be from the Effective Date through June 30, 2026 (“Initial Term”). Upon satisfactory performance by the TOW COMPANY and mutual Attachment "1"
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Item7.

2 agreement by both Parties, the City shall have the option to extend the Initial Term for two additional one-year periods.

4. Performance: TOW COMPANY must faithfully perform in a proficient manner, to the satisfaction of CITY, all the work or services provided in the Description of Services.

5. Insurance Requirements.
a. TOW COMPANY shall procure and maintain , at its own c ost, 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 Services, and the results of such work, by TOW COMPANY, its agents, repr esentatives, employees, or subcontractors. Insurance coverage shall be at least as broad as the following:
(1) Commercial General Liability . Insurance Services Office (“ISO”) Form CG 00 01 covering Commercial General Liability on an “occurrence” basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury, with limits no less than $2,000,000 per occurrence and $4,000,000 general aggregate.
(2) Automobile Liability . ISO Form CA 00 01 covering any auto (Cod e 1), or if CONTRACTOR has no owned autos, hired (Code 8) and non -owned autos (Code 9), with limits no less than $1,000,000 per accident for bodily injury and property damage, unless waived by the CITY and approved in writing by the CITY’s Risk and Safety Division.
(3) Workers’ Compensation . Worker's 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 TOW COMPANY 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 TOW COMPANY.
b. Each insurance policy required by this Ag reement must be acceptable to the City Attorney and shall meet the following requirements:
(1) 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-: FSC VII, or as approved by the CITY. (2) 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 endorsement shall be at least as broad as ISO Form CA 20 01. (3) Primary Coverage . TOW COMPANY ’s insurance coverage shall be primary coverage at lea st 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 TOW COMPANY ’s insurance and shall not contribute with it.

Attachment "1"
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3 (4) Notice of Cancellation. Each insurance policy shall provide that coverage shall not be canceled, except with prior written notice to the CITY. (5) Subcontractors. If applicable, TOW COMPANY shall re quire and verify that all subcontractors maintain insurance meeting all the requirements stated in this Agreement, and TOW COMPANY shall ensure that the CITY (including its officials, officers, agents, employees, and volunteers) is an additional insured on any insurance required from a subcontractor.
(6) Waiver of Subrogation . TOW COMPANY hereby grants to the CITY a waiver of any right to subrogation that any insurer of TOW COMPANY may acquire against the CITY by virtue of the payment of any loss under such in surance. TOW COMPANY 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 TOW COMPANY, its agents, representatives, employees and subcontractors. (7) Self-Insurance. TOW COMPANY may, with the CITY’s prior written consent, fulfill some or all of the insurance requirements contained in this Agreement under a plan of self-insurance. TOW COMPANY shall only be permitted to utilize such self- insurance if, in the opinion of the CITY, TOW COMPANY’s (i) net worth and (ii) reserves for payment of claims of liability against TOW COMPANY are sufficient to adequately compensate for the lack of other insurance coverage required by this Agreement. TOW COMPANY’s utilization of self -insurance shall not in any way limit the liabilities assumed by TOW COMPANY pursuant to this Agreement. (8) Self-Insured Retentions. Self-insured retentions must be declared to and approved by the CITY.
c. Verification of Coverage. At the time TOW COMPANY executes this Agreement, TOW COMPANY 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 reserv es 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 in this Agreement, including the types and limits of insurance coverage TOW COMPANY must maintain, and any approval of such insurance by the CITY, are not intended to and shall not in any manner limit or qualify th e liabilities and obligations otherwise assumed by TOW COMPANY pursuant to this Agreement, including but not limited to any provisions in this Agreement concerning indemnification.
f. 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. In the event that TOW COMPANY fails to comply with any such insurance requirements 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 TOW COMPANY to stop work under Attachment "1"
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Item7.

4 this Agreement and/or withhold any payment that becomes due to TOW COMPANY until TOW COMPANY demonstrates compliance with the insurance requirements in this Agreement.

6. Indemnification: TOW COMPANY (which in this paragraph 7 includes its agents, employees and subcontractors, if any) agrees to indemnify, defend, and hold harmless CITY from all claims, lawsuits, damages, judgments, loss, liability, costs or expenses, including attorneys’ fees, for any of the following:
a. Any personal injuries, property damage or death that TOW COMPANY may sustain while using CITY-controlled property or equipment, while participating in any activity sponsored by CITY, or from any dangerous condition of public property; b. Any injury or death which results or increases by any action taken to medically treat any agent, employee, representative or subcontractor of TOW COMPANY; or c. Any claim of liability arising out of the negligence or any acts or omissions of any agent, employee, representative or subcontractor of TOW COMPANY in the performance of this Agreement.

7. Assignment, Delegation, Subcontracting: The services of TOW COMPANY are personal to CITY, and TOW COMPANY may not assign, delegate, or subcontract any interest in this Agreement without written approval from CITY. A controlling interest in the TOW COMPANY may not be sold to, merged with, or disso lved into another company or legal entity without the advance written approval of CITY, which shall not be unreasonably withheld.

8. Independent Contractor: TOW COMPANY is CITY’s independent contractor, and no express or implied agency or employment relations hip is created by this Agreement. TOW COMPANY’S agents, employees, and representatives shall not be entitled to any benefits to which CITY employees are entitled.

9. Merger Clause: This Agreement and its Attachments, if any, are the entire understanding o f the parties, and there are no other terms or conditions, written or oral, controlling this matter.

In the event of any conflict between the provisions of this Agreement and any of its Attachments, the provisions of this Agreement must prevail.

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

11. Severability: The invalidity in whole or in part of any provision of this Agreement will not void or affect the validity of any other provisions of this Agreement.

12. Choice of Law: This Agreement is governed by the laws of the State of California. Venue for all acti ons arising from this Agreement must be exclusively in the Superior Court of California, County of San Diego, North County Judicial Division, located in Vista, California.

13. Multiple Copies of Agreement/Counterparts : Multiple copies and/or counterparts of t his Agreement may be executed, including duplication by photocopy or by computerized scanning device. Each duplicate will be deemed an original with the same effect as if all the signatures were on the same instrument. However, the parties agree that the Agreement on Attachment "1"
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5 file in the office of the Escondido City Clerk is the copy of the Agreement that shall take precedence should any differences exist among copies or counterparts of the document.

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

15. Notices to Parties : Any statements, communications or notices to be provided pursuant to this Agreement must be sent to the attention of the persons indicate d below. Each party agrees to promptly send notice of any changes of this information to the other party:

TOW COMPANY:
_________________________
_________________________
_________________________
_________________________
CITY:

Escondido Police & Fire Headquarters
1163 N. Centre City Parkway
Escondido, CA 92026
Attn: Tow Coordinator
760-839-4792

16. Business License : The TOW COMPANY will be required to obtain a City of Escondido Business License prior to execution of this Agreement.

17. E-Verify Participatio n: TOW COMPANY agrees to enroll in and begin use of the United States Department of Homeland Security’s (“DHS”) E -Verify program (“E -Verify”) within 30 days of the execution of this Agreement to confirm employment eligibility of all of TOW COMPANY’S potential new hires. TOW COMPANY agrees and understands that E -Verify enrollment requires TOW COMPANY to sign a Memorandum of Understanding (“MOU”) with DHS which provides the E -Verify terms of use. Any violation of the MOU by TOW COMPANY is grounds for DHS’ te rmination of TOW COMPANY’S participation in the E - Verify program. Any such termination by DHS shall constitute grounds for CITY’S immediate termination of this Agreement.

18. Performance Bond : TOW COMPANY must post a performance bond, with a company approved by CITY, in the amount of $25,000, renewable each year, to assure TOW COMPANY’s faithful performance of the terms and conditions of this Agreement and any subsequent agreement to provide services for CITY. This may take the form of a bond executed by a s urety company authorized to do business in the state of California, an endorsed Certificate of Deposit, or a money order or certified check drawn on a solvent bank subject to the satisfaction of CITY’s City Attorney. A faithful performance bond form is attached hereto as Attachment B and incorporated herein by this reference.

19. Termination of Agreement by the City:
a. If the City determines that the TOW COMPANY has failed to fulfill in a timely and proper manner TOW COMPANY‘s obligations under this Agreement, or that the TOW COMPANY violated any of the covenants, agreements or stipulations of this Agreement, the CITY may terminate this Agreement immediately . TOW COMPANY shall be entitled to receive just and equitable compensation for any work satisfactorily co mpleted up to the effective date of termination, not to exceed the amounts payable hereunder, and less any damages caused CITY by TOW COMPANY’s breach.
b. The CITY may terminate the Agreement without cause at any time by providing at least 60 days advance wr itten notice prior to termination. If the Agreement is terminated by Attachment "1"
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6 CITY as provided in this paragraph, TOW COMPANY shall be entitled to receive just and equitable compensation for any satisfactory work completed up to the effective date of such termination, but shall not be entitled to receive compensation for damages, lost profits, or other expectation interests.

20. Termination of Agreement by TOW COMPANY : TOW COMPANY may terminate this Agreement without cause by providing at least 90 days advance written n otice to CITY and TOW COMPANY shall forfeit the entirety of the license fees paid prior to the termination.

TOW COMPANY agrees that CITY reserves the right to add a new company to provide services if any tow company terminates pursuant to the provisions of this paragraph.

21. Tow Company Errors and Omissions : In the event that CITY determines that the TOW COMPANY’s negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to CITY greater than would have resulted if there were no such negligence, errors, omissions, TOW COMPANY shall reimburse CITY for additional expenses incurred by the CITY. Nothing herein is intended to limit CITY’s rights under other provisions of this agreement.

22. Ownership, Publication, Reproduction and Use of Material: All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of CITY.

No such materials or properties produced in whole or in part under such an agreement shall be subject to private use, copyrights or patent rights by TOW COMPANY in the United States or in any other country without the express written consent of CITY. CITY shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other material s or properties produced under such an agreement.

23. Tow Company Not Authorized to Represent CITY : Unless specifically authorized in writing by CITY, TOW COMPANY shall have no authority to act as CITY’s agent to bind CITY to any contractual agreements whatsoever.

24. Promise Not to Acquire Conflicting Interests : Regardless of whether TOW COMPANY is designated as an FPPC Filer under the California Government Code, TOW COMPANY further warrants and represents that TOW COMPANY will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitut e a conflict of interest as prohibited by the Political Reform Act.

25. Duty to Advise of Conflicting Interests : Regardless of whether TOW COMPANY is designated as an FPPC Filer under the California Government Code, TOW COMPANY further warrants and represents that the TOW COMPANY will immediately advise CITY if TOW COMPANY learns of an economic interest of TOW COMPANY which may result in a conflict of interest for the purpose of the Po litical Reform Act, and regulations promulgated there under. If necessary, CITY will provide a referral to independent legal counsel who can assist the TOW COMPANY with determinations regarding possible conflicts of interest.

26. Specific Warranties Against Economic Interests: TOW COMPANY warrants and represents that neither TOW COMPANY, nor TOW COMPANY’s immediate family members, nor TOW COMPANY’s employees or agents presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of CITY -initiated towing and impound services.

Attachment "1"
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7 IN WITNESS WHEREOF, the parties below are authorized to act on behalf of their organizations, and have executed this Agreement as of the date set forth below.

CITY OF ESCONDIDO
Date: _____________________ ________________________________ Dane White
Mayor

TOW COMPANY
Date: _____________________ ________________________________ Signature
________________________________
Name and Title (please print)

(The above signatures must be notarized)

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.

Attachment "1"
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Item7.

8 Attachment A to Tow Services Agreement
Description of Services

1. Tow Services

TOW COMPANY will provide tow services as described herein . The right of any individual involved in a non -criminal traffic collision to call the tow company of their own choosing shall not be infringed upon except in those cases where an unnecessary delay in removing the motor vehicle will, in the opinion of the investigating Peace Officer, diminish public safety or in cases where the individual is incapacitated and unable to make a decision.

2. Rotation

CITY will establish a weekly rotation of companies providing tow services (“Rotation”).

Each tow company participating will receive allocations of like periods in sequence in accordance with a schedule developed by the CITY.

3. Tow License Fee

CITY shall retain the right to impose alternative forms of taxes and/or fees in the event that the tow license fees are no longer assessable due to a subsequent change in federal, state or local law.

4. Definitions

a. “Case Numbers” means case numbers assigned by the CITY when a tow is initiated by the Police Department.

b. “Manager” means an employee or an Owner of TOW COMPANY that manages operations and is invested with a certain amount of discretion and independent judgment.

c. “Owner” means any person owning a controlling interest in TOW COMPANY.

d. “Operator” means an Owner or employees of TOW COMPANY whom operate a tow truck.

e. “Police Initiated Tows ” means the towing of vehicles at the direction of the Police Department where the consent of the vehicle owner to tow the vehicle is not required under existing law, including the towing of motor vehicles which are illegally parked, abandoned, are evidence of a crime, or are otherwise subject to the authority of the Police Department.

f. “Referral Tows ” means the towing of a vehicle by the Police Department at the request of the vehicle owner.

g. “Securely Transport” means making sure that the vehicle’s front wheels are secured on a wheel lift correctly and/or all four tires are chained/secured on a car carrier.

Attachment "1"
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Item7.

9 h. “Tow Truck Inspection Guide ” shall mean the Tow Truck Inspection Guide CHP 234B.

5. Tow Company Requirements

a. TOW COMPANY shall comply with all provisions of the California Labor Code, and all applicable federal, state, and local laws.

b. TOW COMPANY shall be re sponsible for all acts of their employees while those employees are performing services for CITY.

c. TOW COMPANY shall have a minimum of three verifiable year’s for -hire towing experience in order to qualify for the Rotation . Either an owner or a full time Manager continually employed by TOW COMPANY must possess three verifiable years for -hire tow experience, as an owner, principal or full time Manager.

Verification of eligibility shall be determined by the CITY. A change in Manager shall suspend the Agreement until a subsequent Manager is hired and the CITY verifies the Manager’s prior for-hire towing experience.

d. TOW COMPANY shall require all new owners, Operators and Manager’s involved in the physical act of providin g towing services be fingerprinted (via Live Scan) for the purpose of a criminal background check.

e. TOW COMPANY shall notify the CITY immediately upon a Manager’s or Operator’s separation from the company.

f. Any TOW COMPANY Owner, Manager or Operator who separates from the TOW COMPANY, in exces s of one year, shall be fingerprinted for the purposes of conducting a criminal history regardless of prior criminal history clearances.

g. TOW COMPANY shall maintain a current list of Operators.

h. TOW COMPANY shall have a Carrier Identification (CA) number a nd a valid Motor Carrier Property ( “MCP”) permit. The MCP documentation shall be provided to the CITY. Expiration of a TOW COMPANY’S MCP and/or suspension of the MCP pursuant to Section 34623 CVC, shall result in the immediate suspension of the TOW COMPANY, as well as additional disciplinary action which may be imposed by the CITY.

i. TOW COMPANY and its employees are independent contractors and are not agents or employees of CIT Y. It is acknowledged that an Operator’s performance and demeanor may reflect either positively or negatively on CITY. Accordingly, TOW COMPANY employees must refrain from acts of misconduct including but not limited to:

1. Rude or discourteous behavior;

2. Lack of service or refusal to provide service to the public;

3. Any act of sexual harassment or sexual impropriety;

Attachment "1"
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Item7.

10 4. Unsafe driving practices;

5. Exhibiting any objective symptoms of alcohol or drug intoxication or abuse; and

6. Failure to report any violation of the terms of the Agreement.

f. TOW COMPANY shall ensure Operators responding to calls for service are competent and have completed all training programs required in Section 7 below.

g. TOW COMPANY shall maintain enrollment in a controlled substance and alcohol testing ( “CSAT”) program and shall ensure each Operator participates in the program. TOW COMPANY shall notify CITY if an Operator receives a positive result on any substance abuse or alcohol testing.

h. TOW COMPANY shall notify the CITY of any arrest and/or conviction of an Operator, Manager or owner prior to the beginning of the next on duty R otation. Failure to make notification may be cause for disciplinary action.

i. TOW COMPANY shall provide Operators with uniform attire that consists, at a minimum, of a collared shirt. The collared shirt shall conspicuously iden tify the TOW COMPANY. Additionally, the shirt shall have the firs t initial and last name of the Operator embroidered above the right breast pocket. The company -issued uniform shall be kept clean and in good repair.

j. TOW COMPANY must establish a traini ng policy and procedures for Operators that encounter vehicles with potential blood borne pathogens. This includes a checklist of equipment to be on each tow truck and at the storage facility.

k. TOW COMPANY shall courteously provide any information requ ired by claimant to effect the release of the impounded vehicle including: confirming that a particular vehicle is in TOW COMPANY’s possession, directions to the location of the vehicle, the method of securing its release, documentation required, applicabl e charges and fees required to be paid and terms of payment.

l. TOW COMPANY shall efficiently process claimants’ requests so that legitimate and appropriate requests for the release of stored or impounded vehicles are completed within one hour of the time a claimant arrives at the TOW COMPANY’s business office/storage yard.

m. All invoices for towing and impounds shall be clearly itemized by charge or fee type and must include Case Numbers to track billing. Disputes associated with Police Initiated Tows that cannot be satisfactorily resolved by the parties involved shall be adjudicated by CITY. At times there will be releases stating “Bill at CITY Rate.” TOW COMPANY agrees that this CITY Rate is one -half of the tow rate plus $2 per day for storage.

o. TOW COMPANY employees shall not be offered nor accept gratuities pursuant to CVC Section 12110(a).

p. The CITY may inspect all TOW COMPANY records relating to compliance with this Agreement without notice during normal business hours. TOW COMPANY shall Attachment "1"
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11 permit the CITY to make copies of business records at their place of business or remove business records for the purpose of reproduction. The CITY shall provide a receipt for any record(s) removed from the place of business.

q. TOW COMPANY shall maint ain business records for a period of three years, plus the current term of this Agreement and make them available for inspection.

6. Charges and Fees

a. TOW COMPANY shall be authorized to, and responsible for, collecting applicable towing and impound charges prior to releasing a vehicle.

b. A complete schedule of the maximum charges and fees that contracted TOW COMPANY is authorized to collect from consumers for towing/storage and referral services rendered under the Agreement is attached hereto as Attachment C and incorporated herein by this reference. Rates may be reviewed annually by CITY for possible changes to the rates on the fee schedule.

c. Attachment C shall be posted in a conspicuous place at all locations where TOW COMPANY does business and in every tow truck for consumer viewing. This posting shall also include all instructions necessary for consumers to affect an after - hours vehicle release.

7. Tow Truck Operators

a. Operators shall be at least 18 years old and shall posses the proper cla ss of license and endorsements for the towed and towing vehicle.

b. Operators shall have on their person a CITY issued identification badge at all times when performing a service required under this agreement. The identification badge shall bear the Operator’s name and picture. Each Operator will have a training and background check completed by the City of Escondido Police Department prior to issuance of a badge.

c. Operators shall be properly trained and qualified to perform all work undertaken by or assigned to them. TOW COMPANY shall develop a base line Operator qualification sheet for new Operators. The qualification sheet shall be completed prior to the Operator going into service alone. Each Operator must initially complete a certified California Tow Truck Association ( “CTTA”) course or equivalent [not A merican Automobile Association (“AAA”)] and must submit certification of training every five years. TOW COMPANY must provide CITY with all current training received by each Operator.

d. All Operators and Managers shall enroll and successfully complete the Pull Notice Program through the Department of Motor Vehicles. Enrollment of Operators is the responsibility of TOW COMPANY and must occur before an Operator may receive a CITY issued ident ification badge. Pull Notices shall be kept on file and be made available upon request of the CITY.

e. Each medium/heavy duty Operator must initially complete a certified CTTA , WreckMasters or equivalent course (not AAA) certifying them as a medium or heavy Attachment "1"
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12 duty tow truck Operator and must submit certification of training every five years.

Medical exam must be kept current according to DMV standards in order to operate a medium or heavy duty tow truck.

f. Operators must wear their respective uniform and a CITY is sued identification badge. Non -employees of TOW COMPANY may not respond to a CITY call for service under this Agreement.

g. Operators shall maintain a professional standard of pe rsonal appearance and hygiene and shall wear appropriate personal protective and safety equipment.

8. Tow Trucks

TOW COMPANY shall maintain all applicable and valid permits for each tow truck in service. TOW COMPANY must maintain documentation on file that demonstrates that all tow trucks in its fleet have pass ed a California Highway Patrol ( “CHP”) tow truck safety inspection in the last twelve months. Copies of the inspection sheets must be provided to the CITY within five days of the inspection.

a. Tow trucks not passing inspections or meeting the requirem ents of this Agreement will immediately be removed from R otation. Tow trucks will return to R otation once they have passed a re-inspection by the original inspecting agency.

b. TOW COMPANY must own and operate a minimum of five trucks including:

1. Two Class A Wheel lifts rated at 14,500 Gross Vehicle Weight ( “GVW”) with twin cable hydraulic boom rated at one ton or greater;

2. Two Rollback rated at 19,501 GVW;

3. One Medium Duty Wheel lif t with a G VWR of at least 33,000 pounds with twin cable hydraulic boom rated at one ton or greater. The truck shall be equipped with air brakes and a tractor protection valve or device, and be capable of providing and maintaining continuous air to the towed vehicle. All Class B tow trucks with a GVWR of less than 33,000 po unds currently approved by CHP and owned by the same TOW COMPANY shall remain on the rotation tow list until June 30, 2026;

4. TOW COMPANY may maintain a three -axle tow truck with a GVWR of at least 52,000 pounds. The truck shall be equipped with air brakes and must be capable of providing and maintaining continuous air to the towed vehicle;

5. Tow trucks demonstrating a functional equivalency to any or all of the requirements listed above may be substituted upon receipt of written approval by CITY.

c. Each truck shall have a maximum 8,000 pound capacity winch that is power driven by power takeoff from transmission, in both directions, and equipped with safety dogs or an adequate braking system. Winches must be fitted with a minimum of 100 feet of cable for recovery tasks. Roll back car carriers must be fitted with a minimum of 50 feet of cable;
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13 d. Each truck shall be equipped with lighting systems as required by California Vehicle Code ( “CVC”) Sections 24605, 24606 and 25253. Additionally, trucks shall be equipped with utility lamp lighting systems that comply with CVC Section 25110;

e. TOW COMPANY shall maintain three sets of dollies for use by tow trucks providing services to CITY. CITY requires that each tow truck carry its own set of dollies.

TOW COMPANY shall have a front wheel motorcycle dolly that must be stored at their yard and not off-site.

f. Additional Equipment. Tow trucks must be equipped with the miscellaneous equipment required by CVC Section 27700 and have on file a curre nt Tow Truck Inspection Guide certificate of compliance issued by the California Highway Patrol.

Each truck must also be equipped with red flares, lanterns or reflectors, hand tools (screw drivers, pliers, ratchet and sockets, crescent wrenches and metric and standard lug wrenches), bolt cutters, six foot crowbar, rope, broom, shovel, dustpan, fire extinguisher (dry chemical type), utility flood lamps, portable red taillights and stoplight for towed vehicles, equipment for opening locked vehicles, safety snubber chains and a trash can with absorbent material ( i.e. Socks, pads, organic material) and a misc ellaneous accident debris box. Hand tools shall remain with each authorized Tow Truck and not be dependent on Operator’s personal tool box.

Equipment shall not be borrowed from another truck in order to pass inspection.

g. Safety Chains: Safety chains shall be rated at no less than the rating specified by the original equipment manufacturer. Two safety chains shall be used for each vehicle being towed. The safety ch ains will be securely affixed to the bed frame or wrecker boom, independent of the towing sling, bar, hitch, wheel lift, or under -lift towing equipment. The towed vehicle shall be secured to the towing equipment independent of the safety chains by either two chains or two straps. Vehicles being transported on slide back carriers shall be secured by four tie down chains or straps independent of the winch or loading cable. All safety connections and attachments shall have a positive means, of sufficient str ength, to ensure that the safety connection or attachment cannot become disengaged while in transit.

h. Identification: Each truck responding to requests for Police Initiated Tows shall, on both sides of the vehicle, conspicuously bear the company name, local address and local phone number(s) in lettering that complies with CVC Section 27907.

i. Radio Communications: Each truck responding to requests for Police Initiated Tows shall be equipped with radio communications equipment capable of effecting two - way radio communications between the truck and the TOW COMPANY’s dispatching operation. Citizens band radios shall not be used to meet this requirement.

j. Inspection Guide: TOW COMPANY must p rovide a completed Tow Truck Inspection Guide completed by the California Highway Patrol or authorized CITY official for each tow truck.

k. Each tow truck respo nding to a request for Police Initiated Tows shall be well maintained and clean on the exterior and interior and should reflect a professional image.

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14 9. Vehicle Storage & Office Hours

Each TOW COMPANY must have and maintain exclusive use of a storage yard and business office facility . The business office and storage facility must be located in the same location, be a reasonable distance from public tran sportation, and be within CITY limits. No secondary yards will be allowed for storage. All business records of the TOW COMPANY relating to the awarded contract shall be maintained at the business office location and should include the length of time the storage yard and business office has been operational at that location.

a. TOW COMPANY’S place of business shall have a sign which clearly identifies it to the public as a tow service. Business hours shall be posted in plain view to the public. Place of business shall be sufficiently staffed to allow customers to talk face - to-face with a TOW COMPANY’S owner, Manager or employee during normal business hours.

b. TOW COMPANY shall keep business hours from at least 8 a.m. to 5 p.m., Monday through Friday, except for the following state recognized holidays: New Year’s Day, Martin Luther King Day, President’s Day, Memorial Day, 4th of July, Labor Day, Veteran’s Day, Thanksgiving Day, the day after Thanksgiving Day and Christmas Day.

c. Offices staffed with only one employee may be closed for one hour at lunch. A sign shall be posted which reflects a lunch closure and a phone number where a request by a vehicle’s owner/agent shall result in an immediate response to release property or a vehicle.

d. Storage facilities must comply with the following:

i. Minimum Storage Space: The storage yard must be a minimum of 20,000 square feet to accommodate 120 vehicles. This space is exclusive of other storage areas the tow company utilizes for storage of vehicles that are not Police Initiated Tows.

ii. TOW COMPANY must have secured inside storage capable of storing four full sized vehicles or pickup trucks, two of which must be independently secured (i.e.

Sea-Containers or similar facility) capable of being locked and th at are not accessible to employees of TOW COMPANY and the public.

iii. The storage yard must be completely enclosed with a six foot high security fence with poles that are no further apart than eight feet wide and embedded in concrete. Construction of the fe nce and gates must be of sufficient construction to prevent entry into the storage area of unauthorized persons or vehicles.

iv. Vehicles and their contents must be kept safe from pilfering in the storage lot and must be screened from view from street level . All vehicles towed or stored pursuant to this Agreement must be kept within the confines of the storage lot.

v. The storage yard should be comprised of a surface that remains free from mud, pools of water, debris or other elements that would be harmful to stored vehicles Attachment "1"
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15 or persons viewing the vehicles. Examples of an acceptable surface would be concrete, asphaltic concrete, or a similarly durable surface.

vi. Examination/Hazardous Waste Areas: Within the storage lot there must be two designated areas that are paved and sealed adequately to prevent runoff and/or percolation of liquid waste, on which to inspect and store vehicles leaking fluids.

vii. The first area will be at least 400 square feet and sufficient to place two vehicles perpendicular to each oth er for inspection and/or overhead photography. This area must be flat.

viii. The second area shall be at least 600 square feet and sufficient to hold six (6) vehicles at any one time. The second area shall not be used for general vehicle storage, but left open for immediate use for vehicles leaking fluids.

ix. TOW COMPANY shall have on file a written policy and method of hazardous waste recovery and disposition approved by the Escondido Fire Department.

x. The tow yard shall have available a forklift capable of lifting and positioning vehicles onto the inspection pad, and/or in the Sea-Containers.

xi. There must be adequate lighting, and all yard and office construction must comply with applicable laws including, but not limited to, building codes, fire codes a nd zoning regulations. The following minimum lighting standards per 10,000 square feet apply unless local zoning or other regulations dictate increased or diminished lighting requirements:

xii. Four 300 Watt incandescent medium-wide flood lights;

xiii. Three 300 Watt quartz halogen lights;

xiv. Additional storage space must be lighted at the above ratio. Storage yards with less than 10,000 square feet must meet the above minimums. TOW COMPANY must meet all municipal code requirements for lighting; and

xv. The storage yard shall have commercial grade 24 -hour video surveillance coverage of all storage areas and access points, shall retain 60 days of video and shall have a commercial alarm system.

10. Stored Vehicles

a. During regular business hours, TOW COMPANY shall, ex cept as restrained in paragraph 10.b. below, make vehicles stored at the request of CITY available to the vehicle’s registered owner or a person who can be verified to be the registered owner’s agent, for the purpose of removing property from the vehicle. TOW COMPANY must also allow insurance agents, insurance adjusters, or representatives of an automotive repair business access for the purpose of estimating or appraising damages. An employee of TOW COMPANY shall escort and be on scene during the removal of property or during an insurance inspection.

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16 b. Vehicles impounded by CITY for investigative purposes shall be held separately in a secured non-public area on TOW COMPANY’s property until the vehicle is released by order of the CITY. Any property or ot her contents of such vehicles shall not be removed by any person other than a Peace Officer or Evidence Technician employed by CITY. Property removed from such vehicles shall be recorded as removed on the content inventory and the content inventory dated and signed by a representative of TOW COMPANY and the Peace Officer or Evidence Technician removing such property.

11. Response Times

TOW COMPANY shall respond to calls 24 hours per day, seven days per week and must respond to calls for service from wi thin the City limits (unless there is a request for a medium or heavy-duty truck that has to respond from a greater distance) . The responding tow truck must arrive with the appropriate equipment at the requested location within the City of Escondido withi n 30 minutes and daily response time shall average 20 minutes or less. CITY shall identify the appropriate equipment during the initial call for service. Response time is computed from the time the police dispatcher notifies TOW COMPANY until the tow truc k arrives on scene. TOW COMPANY may inform the police dispatcher within five minutes of the initial call for service if, for any reason, it cannot respond within the required 30-minute limit. If notified within five minutes of the originating request for service, dispatcher will contact the next TOW COMPANY on the rotation . Unless TOW COMPANY contacts the police dispatcher within five minutes to waive the call for service, a failure to respond to a towing call within 30 minutes or to exceeding the 20-minute average response time for any day, shall be grounds for disciplinary action.

12. On-Scene Duties

Upon arriving on -scene to remove any of the vehicles, TOW COMPANY’s Operators shall report to the Peace Officer in charge and discharge their duties in a ccordance with the following conditions:

a. Operators shall make every reasonable effort to comply with direction provided by the officer-in-charge.

b. Operators shall always wear their reflective safety vest. An Operator arriving at the scene, providing service or towing a vehicle must display an oscillating, flashing or rotating amber light. No other color may be used. The emergency light must be discernible from the front and back of the truck for at least 500 feet.

c. Operators shall be responsible for verifying the peace officer’s damage assessment for each vehicle towed as a police impound, and shall sign the CHP 180 form.

d. Operators shall be responsible for removing and appropriately disposing of collision - related debris from the public right -of-way at the time of the tow to ensure public safety. Additionally, if manual street sweeping is needed, TOW COMPANY is to provide this service.

e. Operators may make any emergency alterations reasonably required to safely move and/or tow vehicles.

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17 f. Operators shall carry and provide Customer Satisfaction/Complaint Forms to customers upon request.

g. Operators shall not photograph or otherwise electronically record any accident or crime scene without the expressed permission of the CITY.

h. After removing a vehicle from the public right -of-way or private property, Operators shall securely transport that vehicle.

13. Collateral Services

a. TOW COMPANY shall, at the request of CITY, move, tow away and impound motor vehicles which are, under the authority of the Cali fornia Vehicle Code or Escondido Municipal Code, declared by CITY to be: illegally parked, abandoned, involved in a traffic collision and constitute an obstruction of traffic , involve Operator negligence, we impounded pursuant to a lawful arrest and/or have some other evidentiary value

b. The Operator engaged to remove a disabled vehicle from the scene of an accident shall remove all liquid, glass and debris deposited upon the roadway as a result of the incident involving the disabled vehicle that is to be towed.

c. CITY may occasionally require the removal of inoperable CITY vehicles within CITY limits and tow such vehicles to the appropriate CITY facility. Such services will be provided by TOW COMPANY at no charge for vehicles similar to a one -ton pickup and smaller. TOW COMPANY shall charge CITY a fixed rate for larger vehicles, as determined by the Escondido City Council.

d. TOW COMPANY, at CITY’s request, shall remove and impound up to 10 vehicles per week from private property or from the public ri ght-of-way, which are declared abandoned by CITY. Such services will be provided at no cost to CITY. CITY will make reasonable attempt s to remove abandoned vehicles between the hours of 6 a.m. and 10 p.m.

e. TOW COMPANY shall respond to a non -injury accident scene to clean -up debris from the vehicles on scene.

14. Reporting Requirements

a. TOW COMPANY shall keep and maintain records of each vehicle towed at the request of the CITY for the duration of the contract period. These records shall be recorded on a monthly rotation report (“Monthly Report”) in a form and manner approved by the CITY.

c. CITY shall have the right to inspect and audit, without prior notification, TOW COMPANY records at reasonable times during normal working hours to determ ine compliance with these record-keeping requirements.

c. TOW COMPANY shall submit the Monthly Reports to the CITY no later than the fifteenth day of each month. Monthly Reports shall cover services rendered during the preceding month. Vehicles being he ld over from the previous month must be Attachment "1"
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18 included on the Monthly Report as part of the inventory until such time as the vehicle is subject to a lien, released or junked.

d. TOW COMPANY shall submit a quarterly financial report to the CITY on October 1st, January 1st, April 1 st and July 1 st of each quarter through the term of the Agreement (“Quarterly Report”). The report submitted on July 15th each year shall also include an annual summary of all items report ed for the previous fiscal year. Quarterly Reports must be in a computer-generated format acceptable to CITY.

15. Audit and Inspection of Records

TOW COMPANY shall, during normal business hours, make all records, equipment and storage facilities available for periodic, unscheduled inspection by CITY . Records shall include TOW COMPANY’s financial statements.

16. Negligent Vehicle Impound Program (“NVIP”) Fees

The CITY will be responsible for collection of NVIP fees.

17. Insurance

In addition to the insurance requirements addressed separately in this Agreement, TOW COMPANY shall maintain minimum insurance at the following levels:

a. Uninsured Motorist – Legal minimum, combined single limit.

b. On-hook Coverage / Cargo – Insuring the vehicle in tow with limits based on the size of the tow truck.

1. Class A tow truck - $50,000;

2. Class B tow truck - $ 100,000;

3. Class C tow truck - $ 200,000; and

4. Class D tow truck - $ 250,000.

c. Garage Liability – Includes premises and operations. Coverage for bodily injury and property damage with a combined single limit of not less than $500,000.

d. Garage Keeper’s Liability – Shall be the same as on -hook coverage for vehicles in the care, custody and control of the TOW COMPANY in the storage yard.

e. Minimum Level of Financial Responsibi lity (as required by Section 34631.5 CVC) – Bodily injury and property damage with a combined single limit of not less than $750,000 for Class A tow trucks. The combined limits for Classes B and C shall not be less than $1,000,000. These minimum standard s are to include non -owned and hired auto coverage.

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19 18. Impounded Vehicles

a. TOW COMPANY shall provide vehicle release services on a twenty -four-hours-a- day, seven-days-per-week basis. Any vehicle release effected outside the hours of 8 a.m. to 5 p.m . Monday through Friday (including legal holidays), is subject to the after-hours release fee contained in the CITY Council approved Fee Schedule.

b. TOW COMPANY shall not release any vehicle impounded as the result of a Police Initiated T ow unless the claimant presents a valid, CITY -issued Vehicle Release Form, current registration, proof of insurance and an Impound Vehicle Payment Receipt. The CITY will determine which impounded vehicles require such releases.

TOW COMPANY is responsible and liable fo r the release of any vehicle without a Vehicle Release Form. All vehicle lien sales must fully comply with California Civil Code Section 3072, and this agreement. In addition to any other provision of state or local law, TOW COMPANY agrees to comply with the following the lien sale of any vehicle:

1. Remove and destroy the vehicles’ license plates by cutting them in two pieces.

2. Within five days of the sale, submit a completed “Notice of Release of Liability” form to the Department of Motor Vehicles.

3. Within 10 days of the sale, submit the two pieces of the destroyed plates to the CITY along with the copy of the “Notice of Release of Liability” form for each destroyed plate.

c. If TOW COMPANY fails to perform any provision of paragraph 17.b. above, TOW COMPANY shall be liable to CITY in the amount of $500 per violation.

d. Repair and Alteration of Impounded Vehicles . TOW COMPANY shall not make any repairs or alterations of vehicles in their possession without the express written authorization of the veh icle’s registered owner, the registered owner’s insurance carrier or a verifiable agent of the owner or insurance carrier unless necessary to tow the vehicle.

e. Damage to Vehicle While in TOW COMPANY’s Possession . CITY will provide a California Highway Patrol 180 Impound and Storage forms to Operators for police tows and impounds. TOW COMPANY shall be responsible for any damage occurring to the vehicle while in its sole possession and, therefore, damage not recorded on the CHP 180 damage assessment will be considered TOW COMPANY’s responsibility. TOW COMPANY shall indemnify CITY for any and claims or lawsuits pertaining to damage which occurs to the vehicle after TOW COMPANY has arrived at the scene, or which occurs during Referral Tows.

f. Loss of Property While in TOW COMPANY’s Possession. TOW COMPANY shall be responsible for all property belonging to that vehicle as identified by the content inventory and the CHP 180 form. Loss of property which occurs after TOW COMPANY has arrived at the scene, o r which occurs during Referral T ows will be the sole and undisputed responsibility of TOW COMPANY.

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20 19. Complaint Procedure

a. All Customer Satisfaction/Complaint Forms as well as any other verbal or written complaints received by TOW COMPANY or initiated by CITY will be forwarded to the Traffic Sergeant of the Escondido Police Department Traffic Bureau and shall be investigated in a fair and impartial manner.

b. The Traffic Sergeant or his/her designee will review, investigate, and adjudicate all complaints regarding Police Initiated Tows, related disputes , and customer complaints regarding the quality of service being provided by TOW COMPANY as measured by compliance with th e terms and conditions of this A greement, when appropriate.

1. TOW COMPANY sh all cooperate with the Escondido Police Department investigators during the course of an investigation. Should the filing of criminal charges be a possibility, the Escondido Police Department shall conduct the investigation to conclusion or assist the lea d investigating agency and request prosecution if warranted.

2. At the conclusion of the investigation of the complaint, applicable parties will be notified in writing of the outcome and any disciplinary action to be taken , notwithstanding any limitations on the release of such information pursuant to California Penal Code sections §§ 832.5, 832.7, and 832.8, et seq. and California Evidence Code §§ 1043 through 1047.

20. Disciplinary Action

The CITY’s Chief of Police may take disciplinary action against a TOW COMPANY for violations of this Agreement. TOW COMPANY agrees that failure by the any member of their respective organization, or their agent, to comply with the terms and conditions of this Agreement shall be cause for disciplinary action. V iolations of this Agreement will be investigated and a disposition determined by the Chief of Police or his/her designee.

a. The following will be used as a guide for action against an Operator for minor violations investigated and verified as true:

1. 1st Violation - Written Reprimand

2. 2nd Violation Within 12 Consecutive Months – 1 to 30 day rotation suspension

3. 3rd Violation Within 12 Consecutive Months – 1 to 60 day rotation suspension

4. 4th Violation Within 12 Consecutive Months – 1 to 90 day rotation suspension or termination for cause.

b. CITY’s Chief of Police may suspend any Operator or TOW COMPANY if in his or her judgment the Operator or TOW COMPANY’s conduct poses a danger to public safety, or there is evidence of criminal conduct, or if such conduct constitutes a gross violation of the terms and conditions of this Agreement. The suspension would remain in effect until the investigation is completed and a final disposition is reached.

Dispositions may include termination of Agreement.

c. A violation of the GVWR and/or safe loading requirements of a tow truck may be cause for disciplinary action. This includes exceeding the tow truck’s GVWR, front Attachment "1"
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21 axle weight rating (“FAWR”), rear axle weight rating ( “RAWR”), maximum tire weight ratings, or not maintaining 50% of the tow truck’s laden front axle weight on the front axle when in tow.

d. Any conviction of an employee of the TOW COMPANY involving a stolen or embezzled vehicle, fraud related to the towing business, stolen or embezzled property, a crime of v iolence, a drug -related offense, felony driving while under the influence of alcohol or drugs, misdemeanor driving while under the influence of alcohol or drugs, or moral turpitude sh all be cause for suspension or removal of an an employee, or denial of an Operator’s application, or termination of the Agreement.

e. A TOW COMPANY shall satisfy a court order mandating reimbursement to the vehicle or property owner for the damage or loss which occurred while the vehicle was in the TOW COMPANY’S possession.

f. A violation of the equipment requirement, related to safety, shall be cause for immediate suspension. The suspension shall remain in effect until the suspension period is completed and the CITY has inspected the equipment and concluded the TOW COMPANY is in compliance.

g. Any unsatisfactory terminal evaluation rating issued by the Motor Carrier Safety Unit (“MCSU”) shall be cause for suspension. The suspension shall remain in effect until proof of a satisfactory compliance rating from the MCSU has bee n provided to the CITY.

h. Allowing an incompetent Operator to respond to a call shall be cause for disciplinary action of the TOW COMPANY.

21. Appeals

All actions involving this Agreement may be appealed to CITY’s Chief of Police with in ten business days of written not ification of disciplinary action. If requested, CITY shall schedule a hearing as soon as practical. When an appeal is filed, CITY shall make a determination whether to stay any disciplinary action based on the issues, facts and severity of the underlying violation. The hearing shall be conducted by the Chief of Police or his designee and the TOW COMPANY shall b e entitled to present testimony and all relevant facts. Except for rules of privilege or other constitutional rights, the California rules of evidence may be used when considering introduction of any evidence.

The decision of CITY’s Chief of Police may be appealed to the CITY’s City Manager within ten business days after written notification of the decision of CITY’s Chief of Police. The City Manager or his designee may schedule a second hearing or may review the administrative record before reaching a decision. The decision of CITY’s City Manager is final, and there is no further administrative remedy available. Failure to file a written appeal within ten days of notification, shall constitute a waiver of all appeal rights and the decision is final.

22. CITY Department Errors and Omissions

When any vehicle has been ordered towed by CITY and it is established that the tow was in error through a mistake of fact, TOW COMPANY shall release the vehicle to its registered owner or another legitimate claimant at no cost. If an error by CITY results in Attachment "1"
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22 a vehicle being stored longer than it can reasonably be determined that it shou ld have been, TOW COMPANY shall release the vehicle to the claimant, and bill the claimant only those storage charges that would have accrued if no error had occurred. In the case of erroneous towing, TOW COMPANY shall charge CITY 50% of the Basic Tow rate. In the case of erroneous extended storage, TOW COMPANY shall charge CITY $2.00 per day for storage charges beyond the claimant’s responsibility. However, if CITY can reasonably establish that the circumstances resulting in the error were beyond the control of CITY, neither CITY nor the claimant shall be liable for such charges.

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23 Attachment B to Tow Service Agreement
Faithful Performance Bond

FAITHFUL PERFORMANCE BOND

KNOW ALL BY THESE PRESENTS,

WHEREAS, T he City Council of the City of Escondido, State of California, and [ Tow Company/Principal], a [ Entity Type ] (“Principal”), have entered into that certain Tow Service Agreement dated [ Effective Date of Agreement ] (“Agreement,” hereby referred to and made a part hereof), whereby Principal has agreed to provide police tow, impound, and referral tow services for the City on a rotational basis

WHEREAS, the Principal is required under the terms of the Agreement to furnish a bond for the faithful performance of the Agreement.

NOW, THEREFORE, we, the Principal and __________, a ______________ organized and existing under the laws of the State of California and authorized to act as a surety in the State of California (“Surety”), are held and firmly bound unto the City of Escondido, a California municipal corporation (“City”) in the penal sum of twenty-five thousand dollars and zero cents ($25,000), lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors, and administrators, jointly and severally, firmly by these presents.

THE CONDITION of this obligation is such that if the Principal, or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions, and provisions in the Agreement and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified , and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents, and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.

As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the City in succ essfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Agreement or to the work to be perfo rmed thereunder or the specifications accompanying the same shall in any manner affect its obligations on this bond, and the Surety hereby waives notice of any such change, extension of time, alteration, or addition to the terms of the Agreement or to the work or to the specifications.

IN WITNESS WHEREOF, this instrument has been duly executed by the Principal and Surety above named, as of this ________ day of __________________, 20__.

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24 _________________________________
Name of Principal

_________________________________
Address of Principal

By: __________________________________________
Signature of Person Signing on Behalf of Principal

__________________________________________
Name of Person Signing on Behalf of Principal

__________________________________________
Title of Person Signing on Behalf of Principal

_________________________________
Name of Surety

_________________________________
Address of Surety

By: __________________________________________
Signature of Person Signing on Behalf of Surety

__________________________________________
Name of Person Signing on Behalf of Surety

__________________________________________
Title of Person Signing on Behalf of Surety

(ACKNOWLEDGMENTS OF EXECUTION BY PRINCIPALS AND SURETY MUST BE ATTACHED.)

APPROVED AS TO FORM:

OFFICE OF THE CITY ATTORNEY
MICHAEL R. MCGUINNESS, City Attorney

BY: _____________________________

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25 Attachment C to Tow Service Agreement
Tow Fee Schedule
Fiscal Year 2023-2024

Basic Tow* $ 245.00
Medium Duty** $ 280.00
Heavy Duty $ 345.00
Labor Rate per Hour – Basic*** $ 160.00
Labor Rate per Hour – Medium $ 200.00
Labor Rate per Hour – Heavy $ 245.00
After Hour Gate Fee $ 120.00
Outside Storage – Daily $ 65.00
Inside Storage – Daily $ 70.00
Police Tows to Junk $ 38.00
City Vehicles w/in County**** $ 140.00
Negligent Vehicle Impound Fee $ 180.00
Stolen Vehicle Recovery Fee Release to $ 140.00 per vehicle Responsible Official or Agent – Impound Fee
Stolen Vehicle Recovery Fee Release to $ 10.00
Responsible Official or Agent – Storage Fee (per day)

*Basic Tow Fee is for first hour of service.
** Medium Tow Fee is for vehicles one ton and over.
***Labor per hours is for the hours following the basic tow. ****City Fee for vehicles over one ton in city limits, and any tow outside city limits.

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City of Escondido
RFP No. 23-17 – Police Tow, Impound, and Referral Tow Services

Page 9 ends

EXHIBIT B
to RFP No. 23-17 – Police Tow, Impound, and Referral Tow Services Authorized Company Representative Certification

In signing this certification and submitting a proposal in response to the City of Escondido’s Request for Proposals No. 23-17 – Police Tow, Impound, and Referral Tow Services (referred to herein as “RFP”), ___________________________________ (referred to herein as “ Tow Company ”) and its representative express acceptance of all the requirements contained in the RFP and the accompanying exhibits, attachments, or other documents described or incorporated therein. Any proposed or intended exception or deviation from the requirements of the RFP must be clearly id entified and initialed by the Tow Company Representative in Tow Company’s proposal.

In executing this certification, the undersigned, on behalf of Tow Company, agree that I have reviewed the items completed by Tow Company in response to the RFP and have reviewed and agree to all terms and conditions of the RFP. The undersigned further agrees that if there are any misrepresentations or false statements in the information submitted by Tow Company in response to the RFP , the City may reject Tow Company’s proposal and elect not to consider Tow Company for Police Rotation.

Undersigned certifies, on behalf of Tow Company, that Tow Company understands all information, requirements, and provisions of the RFP, and that all resolutions or other actions have been ta ken to enable the undersigned and Tow Company to enter into this RFP and the resulting contract.

Date: _____________ ____________________________________ Representative’s Signature

____________________________________
Representative’s Name (please print)

____________________________________
Representative’s Title

________________________________________________________

________________________________________________________ (Tow Company Name, Address & Phone)

(THE ABOVE SIGNATURE MUST BE NOTARIZED)

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MATTIA LAW

A PROFESSIONAL LAW CORPORATION
3835 AVOCADO BLVD, SUITE 265
LA MESA, CALIFORNIA 91941
TELEPHONE (619) 795-6632
FACSIMILE (619) 795-6032
[email protected]
WWW.MATTIALAW.COM
June 21, 2023
VIA E-MAIL:

Dane White - City Council Mayor
Consuelo Martinez - Councilmember District 1
Joe Garcia - Deputy Mayor District 2
Christian Garcia - Council Member District 3
Michael Morasco - Councilmember District 4
Ed Varso - Chief of Police
Lisa Rodelo - Deputy Director of Police Support Services Craig E. Miller - Police Sergeant
Aaron S. Goldman - Police Projects Specialist
Barbara Marlett - Project Manager
Re: Notice of Request for Proposals (“RFP”) No. 23-17 – Police Tow, Impound and Referral Tow Services
On behalf of Quality East County, Inc
Dear Honorable Mayor White, City Counsel Members, Chief Varso, police and city staff:

My office has been retained by Quality East County Inc (“Quality”) regarding its proposal to provide tow, impound and referral tow services for the City of Escondido. Quality submitted its proposal, per the City’s requirements and on time prior to the May 11, 2023, deadline. The proposal followed the requirements of RFP No. 23-17 as provided by the City of Escondido.

On or about June 19, 2023, Quality was sent a message that is proposal was denied due to not meeting the requirements of the RFP, specifically Attachment A to Tow Services Agreement, Description of Serves, No. 9 Vehicle Storage & Office hours, Section D. The denial did not mention which portion of Section D did not meet the requirements. This omission is important, because it did not allow Quality to clarify and understand what the denial was for. Notwithstanding the omission, we feel that Quality met all the requirements. Section D has 15 subsections, i-xv.

Without dismissing all stated subsections, it seems that subsections i-ii requirements have the most specific requirements, which have been met.

Subsection i, states:
i. Minimum Storage Space: The storage yard must be a minimum of 20,000 square feet to accommodate 120 vehicles. This space is exclusive of other Attachment "4"
412
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storage areas the tow company utilizes for s torage of vehicles that are not Police Initiated Tows.

Quality’s facility is approximately 20,429 square feet and is exclusive of other storage areas that are not Police Initiated Tows, as shown in the attached Exhibit A, site plan.

Subsection ii states:

ii. TOW COMPANY must have secured inside storage capable of storing four full sized vehicles or pickup trucks, two of which must be independently secured (i.e.

Sea-Containers or similar facility) capable of being locked and that are not accessible to employees of TOW COMPANY and the public.

As indicated on the Site Plan, Quality has one 10x20 sea container, two inside storage cages, and an inside storage facility capable of housing six total vehicles, two inside the evidence cages and four outside the cages, shown in the pictures labeled as Exhibit B.

The inspection was conducted on June 8, 2023, the inspection officers arrived at approximately 11:10am. Within five minutes of their arrival, they were alerted of an officer involved shooting. The officers were discussing the shooting situation while conducting their inspection. While I am not dismissing the emergency, the inspection could have been continued to another date, allowing for a full view of the premises in order for a proper report to be made .

Although the situation was understandable, the inspection seemed to be rushed and Quality was likely suffered from such a short inspection . This is important because the Staff Report provided for the June 21, 2023, meeting states that an on-site inspection is one of the requirements, and it is fair to say that a proper inspection should occur wh en involving an important contract with the city.

Quality has been in the towing business for several years and has contracts with various cities and insurance companies throughout California. Along with all the required space and equipment, Quality’s knowledge and experience in the industry will be a great asset for all its towing service.

This is a formal request to add Quality East County Inc to the list of recommended towing companies to enter into contracts. If a determination that Quality is denied a contract, then I request the city provide my office with the necessary steps to submit an appeal. I appreciate your time on this matter and I am confident the city will agree with the contents of this letter and overturn the recommendation denying Quality’s proposal.

Sincerely,

_________________
Steve S. Mattia, Esq.

Attachment "4"
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EXHIBIT A

Attachment "4"
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SIDEWALK
(E) BUILDING 1

WAREHOUSE
10,808 SF.

PARKING LOT
196'-0"
296'-0"
PL
PL
PL
1 2 3 4 5 6
7 8 9 10 11
(E) STORAGE YARD
18,521 S.F.
(E) STORAGE

WAREHOUSE
(NOT

INCLUDING

OFFICES)
1,908 S.F.

N. QUINCE DRIVE

UPUPUP UP
12 13 14 15 16
17 18 19 20 21 22

PARKING LOT
232425
(E) INTERIOR

STORAGE AREA
1,685 S.F.

SITE PLAN
SP 1
SCALE
1/16"=1'-0" S I T E P L A N
(N) COVERED TRASH ENCLOSURE
(E) 6'-0" HIGH FENCE
(E) 6'-0" HIGH GATE
(E) LANDSCAPING
(N) 9'-0" x 18'-0" ACCESSIBLE PARKING SPACE
(N) 8'-6" x 18'-0" PARKING SPACES
(N) 9'-0" x 22'-0" PARKING SPACES
(E) 6'-0" HIGH WOOD FENCE
(E) 6'-0" HIGH BRICK WALL
(E) STRUCTURE
(E) 6'-0" HIGH CHAIN LINK FENCE
(N) 6'-0" HIGH FENCE TO MATCH (E)

CHAIN LINK FENCE FLOOR TO CEILING
1 KEY NOTES
N

REVISIONS
L
No. C24383

I CENSED
A
R
C
H
ITECT

M A R K
F
O
S
T
E
R
B
A
U
SBACK
STATE
O
F
C
A
L
IFORN I A Ren. 07/31/17
SHEET TITLE: PROJECT:

BAUSBACK
m B A

ARCHITECT

AS NOTED
E. Q.

QUINCE INDUSTRIAL
PARK
520 N QUINCE ST.

ESCONDIDO, CA 92025

02.22.2016

MOUNTAIN VIEW
2 3
1 3
2 30'-1" 30'-11"
8'-0"
4 4
4 5
6 5
6 PROJECT INFO
BUILDING & OUTSIDE STORAGE YARD SF:

BUILDING 1:10,808 SF.

BUILDING 2:6,030 SF.

TOTAL:16,838 SF.

OUTSIDE STORAGE YARD: 18,521 SF.

PARKING:

BUILDING 1: 10,808 WAREHOUSE
1 SPACE PER 800 SF. = 13 SPACES
BUILDING 2: 4,345 SF WAREHOUSE
1 SPACE PER 800 SF= 6 SPACES
1,685 SF WAREHOUSE
1 SPACE PER 800 SF= 2 SPACES
STORAGE YARD: 18,521 SF
1 SPACE PER 5,000 SF = 3 SPACES
TOTAL SPACES REQUIRED = 24 SPACES
TOTAL SPACES PROVIDED = 25 SPACES

NO FIRE SPRINKLERS
6 29'-5"
7 77

SCOPE OF WORK
xDEMOLISH EXISTING 6' BRICK WALLL SEPARATING
PARKING FROM STORAGE YARD AND MOVE IT 60'
TO NORTHEAST TO ACCOMMODATE 11 NEW
PARKING SPACES.
xRE-STRIPE 11 NEW PARKINGS SPACES ADJACENT
TO EXISTING PARKING, AS WELL AS 3 PARALLEL
SPACES NEAR BUILDING 2.
xBUILDING 1 TO REMAIN UNCHANGED, NO EXTERIOR
IMPROVEMENTS ON EITHER BUILDING.
xADD CHAIN LINK FENCE IN BUILD 2 BETWEEN

STORAGE AND WAREHOUSE
xRE-STABLISH A TOWING FACILITY WITH 20,206 SF
OF STORAGE SPACE FOR CARS (18,521 SF OF
OUTDOOR STORAGE AND 1,685 SF OF INDOOR
STORAGE), FOR THE USE OF BUILDING 2 ONLY
11 8 9
8 9
10 10
11 12
12 24'-0"24'-0"
10'-0"
24'-0" 24'-0"
11(E) STORAGE YARD
18,521 SF.
13 13
Exhibit # 1
10 X 20 Sealed Storage
Container
Exhibit # 2
(2) 10 X 22 Sealed
Evidence Cages
Exhibit # 3
Additional Inside Storage
Capable of housing 4
vehicles minimum.

Exhibit # 4
Storage Warehouse
comprised of two (2)
evidence cages along
with additional storage
separate of evidence
cages capable of housing
4 vehicles. Total 6
vehicles.

Storage Warehouse is
locked down with no
access by Quality Towing
employees or the public.

Attachment "4"
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EXHIBIT B

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Edward Varso
Chief of Police
1163 N. Centre City Parkway
Escondido, CA 92026
Phone: 760-839-4706
[email protected]
June 22, 2023
Mr. Sunan Alsadik
CFO/Vice President
Quality East County, Inc.
520 N. Quince St. Unit 11
Escondido, CA 92025
Subject: Request for Proposal 23-17 – Inspection Details A scheduled inspection of the Quality East County, Inc. Tow Yard, was performed on June 8, 2023. The following deficiencies were noted:
- RFP 23-17 required “Minimum Storage Space: The storage yard must be a minimum of 20,000 square feet to accommodate 120 vehicles. This space is exclusive of other storage areas the tow company utilizes for storage of vehicles that are not Police Initiated Tows.” o The tow yard measured 17,870 square feet with a storage space of 16,866 square feet for vehicle storage.
- RFP 23 -17 required “TOW COMPANY must have secured inside storage capable of storing four full sized vehicles or pickup trucks, two of which must be independently secured (i.e. Sea -Containers or similar facility) capable of being locked and that are not accessible to employees of TOW COMPANY and the public.” o There were only two inside storage spaces.
- RFP 23-17 required “Examination/Hazardous Waste Areas: Within the storage lot there must be two designated areas that are paved and sealed adequately to prevent runoff and/or percolation of liquid waste, on which to inspect and store vehicles leaking fluids. The first area will be at least 400 square feet and sufficient to place two vehicles perpendicular to each other for inspection and/or overhead photography. This area must be flat. The second area shall be at least 600 square feet and sufficient to hold six (6) vehicles at any one time.

The second area shall not be used for general vehicle storage, but left open for immediate use for vehicles leaking fluids.”
o There were two hazmat pads: the first hazmat area was 525 sq uare feet and the second hazmat area was only 532 square feet.

As a result of these findings, Quality East County, Inc. did not meet the requirements of RFP 23-

17. Please contact Lisa Rodelo, at [email protected] with any questions.

Sincerely,
Edward Varso
Chief of Police
CC: Steve S. Mattia, Esq.

Attachment "5"
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Item7.

Edward Varso
Chief of Police
1163 N. Centre City Parkway
Escondido, CA 92026
Phone: 760-839-4706
[email protected]
June 22, 2023
Mr. Frank Khati, President
Tow & Transport, Inc.
1802 Don Lee Place
Escondido, CA 92029
Subject: Request for Proposal 23-17 – Inspection Details A scheduled inspection of the Tow and Transportation, Inc. Tow Yard, was performed on June 8, 2023. The following deficiencies were noted:
- RFP 23-17 required “Minimum Storage Space: The storage yard must be a minimum of 20,000 square feet to accommodate 120 vehicles. This space is exclusive of other storage areas the tow company utilizes for storage of vehicles that are not Police Initiated Tows.” o
- RFP 23-17 required “Examination/Hazardous Waste Areas: Within the storage lot there must be two designated areas that are paved and sealed adequately to prevent runoff and/or percolation of liquid waste, on which to inspect and store vehicles leaking fluids. The first area will be at least 400 square feet and sufficient to place two vehicles perpendicular to each other for inspection and/or overhead photography. This area must be flat. The second area shall be at least 600 square feet and sufficient to hold six (6) vehicles at any one time.

The second area shall not be used for general vehicle storage, but left open for immediate use for vehicles leaking fluids.”
o There were two hazmat pads: the first hazmat area was only 391 square feet and the second hazmat area was 647 square feet.

As a result of these findings, Tow and Transportation, Inc. did not meet the requirements of RFP 23-17. Please contact Lisa Rodelo, at [email protected] with any questions.

Sincerely,
Edward Varso
Chief of Police
Attachment "6"
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Attachment "7"
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�
£� ON
City of Choice

CITY OF ESCONDIDO
City Clerk
201 North Broadway
Escondido, CA 92025
(760) 839-4617
Fax: (760) 735-5782
FOR CITY lJSE ONLY
---'--_ Application Code(s}
___ Fee (Non-Refundable)
___ Receipt No.
___ Date Filed
___ Council Hearing Date
___ Planning Case File No.
(if applicable)

APPLICATION TO APPEAL A DECISION TO THE CITY COUNCIL
Applicant: fAAN\(. \'- \�A'"T f
(Print)
Mailing Address: \'$02 \;l:)N c..�e; PLAcC
(Street)
tSlt:m O t 00 C\ U,2,q
(City) (Zip)
E-mail: 1ZcAOwA1 f\v'fo'TV1>.HtJb €\\A\\,o. CJ"' Fax: (1 IIO) 7lf7-3$tf I Legal Owner: (..Vt-\Q �MH,"J "i'fw� Phone: ---------
(Print)
Property Address: \f;:?:t 'OOH LE"€ ft.t'rCE ES�'6C cw, CA- (Subject of Appeal)
Assessor Parcel Number: 'l't-8 l�\ O'I DO ----------------------- Project Case Number (if appropriate): __________________ _ Is legal owner aware of this application? � Yes
Justification for appeal (Use additional paper, if necessary):

Distribution:

Planning Division
City Manager
City Clerk
Other __________ _
Applicant
MW/Forms/Appeal Application (Rev. 10/07)
€4!�
; Signature of Applicant
ib /2 71 d-{)A3
i , '
Date
Attachment "8"
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Attachment "8"
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cplll'r Quality East County, Inc
June 28, 2023
Dba Quality Towing & Recovery
520 N Quince St, Unit 11
Escondido, CA 92025
City Clerk's Office, City of Escondido
201 N Broadway, Escondido, CA 92025
Attention: Zack Beck, CMC, CPMC
City Clerk
RE: Appeal Letter
RFP No.23.17-Police Tow, Impound, and Referral Tow Services ----------------
Dear Mr. Beck,
In response to the feedback given by Deputy Director Rodela via email dated June 20, 2023, at 10:17 PM, Quality Towing was advised that the reason for denial was due to the non-compliance with all of the requirements per RFP - Attachment A to Tow Services Agreement - Description of Services - No. 9 Vehicle Storage & Office Hours - Section D.

This letter is to challenge the decision made on our proposal for RFP 23-17. We strongly believe that Quality Towing is fully qualified and compliant with all of the requirements listed in the RFP - Attachment A to Tow Services Agreement - Description of Services - No. 9 Vehicle Storage & Office Hours - Section D.

The following attachments are the Exhibits to address each criterion:

Section i, Exhibit 1:

RFP States "The storage yard must.be a minimum of 20,000 square feet to accommodate 120 vehicles". Our outside and inside storage spaces makes it meet the minimum requirements by utilizing both inside and outside storage space.

Attachment "Site Plan"
We have 20,429 Square Feet.

Outside Storage = 18,521 SF.

Inside Storage= 1,908 SF.

Total Vehicle Storage Space = 20,429
Attachment "9"
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STAFF REPORT

November 1, 2023
File Number 0130-10

SUBJECT
APPOINTMENT OF AD HOC SUBCOMMITTEE TO ADDRESS THE CITY'S ON-GOING STRUCTURAL DEFICIT–

DEPARTMENT
City Clerk’s Office

RECOMMENDATION
Request the City Council appoint an ad-hoc subcommittee to address City’s on-going structural deficit.

Staff Recommendation: Approval (City Clerk’s Office: Zack Beck) Presenter: Zack Beck

BACKGROUND
The committee will explore long term cost curtailment strategies to address the City of Escondido’s $10 million structural deficit.

ATTACHMENTS
a. 2023/2024 Interagency and Subcommittee Appointment List 536
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COUNCIL REPRESENTATIVE STAFF

INTERAGENCY APPOINTMENTS

CITY OF ESCONDIDO COUNCIL APPOINTMENTS

ESCONDIDO CREEK

WATERSHED
03 JOE GARCIA

CONSUELO MARTINEZ (ALTERNATE)

ANGELA MORROW

CHRISTOPHER MCKINNEYCLEAN ENERGY

ALLIANCE
02 CHRISTOPHER MCKINNEYAIR POLLUTION

CONTROL
01 CHRISTIAN GARCIA

JOE GARCIA (ALTERNATE)

SEAN MCGLYNNLEAGUE OF CA
CITIES
04 JOE GARCIA

DANE WHITE (ALTERNATE)

CHRISTOPHER MCKINNEYNORTH COUNTY

TRANSIT DISTRICT
05 MIKE MORASCO

DANE WHITE (ALTERNATE)

ANGELA MORROWREGIONAL SOLID
WASTE ASSOC.
06 SANDAG07 SEAN MCGLYNN

ANGELA MORROWSD COUNTY WATER

AUTHORITY
08 CHRISTIAN GARCIA

DANE WHITE (ALTERNATE)

JOANNA AXELRODSAN DIEGUITO

RIVERPARK JPA
09 CONSUELO MARTINEZ

JOE GARCIA

CHRISTIAN GARCIA

DANE WHITE

MIKE MORASCO (ALTERNATE)

JOE GARCIA (SECOND ALTERNATE)

CONSUELO MARTINEZ

DANE WHITE (ALTERNATE)

JOE GARCIA

MIKE MORASCO (ALTERNATE)

JOHN TENGERNORTH COUNTY

DISPATCH JPA
10 Attachment "1"
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CITY OF ESCONDIDO COUNCIL APPOINTMENTS

LOCAL SUBCOMMITTEES

COUNCIL REPRESENTATIVE STAFF

ECONOMIC

DEVELOPMENT
05 DANE WHITE

JOE GARCIA

JENNIFER SCHOENECK

DANE WHITE

CHRISTIAN GARCIA

CHRISTOPHER MCKINNEY

DOWNTOWN

PARKING
04 CONSUELO MARTINEZ

JOE GARCIA
CHRISTOPHER MCKINNEYCCAE03

CONSUELO MARTINEZ

DANE WHITE

ZACK BECK

BOARDS AND

COMMISSIONS
01 CHRISTIAN GARCIA

MIKE MORASCO
ANGELA MORROWUTILITIES09

JOE GARCIA

CHRISTIAN GARCIA

JENNIFER SCHOENECK
SCHOOLS08

MIKE MORASCO

CHRISTIAN GARCIA

CHRISTOPHER MCKINNEY
HOUSING07

CONSUELO MARTINEZ

MIKE MORASCO

CHRISTINA HOLMES
BUDGET02
HOMELESSNESS06 DANE WHITE

JOE GARCIA

CHRISTOPHER MCKINNEY
Attachment "1"
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STAFF REPORT

November 1, 2023
File Number 1080-65

SUBJECT

TRANSPORTATION PRIMER

DEPARTMENT
Development Services

RECOMMENDATION
It is r equested that the City Council hold a workshop to discuss transportation in preparation for upcoming local and regional planning efforts.

Staff Recommendation: Receive and File (Chris McKinney, Interim Development Services Director/ Deputy City Manager and Julie Procopio, City Engineer)
Presenters: Chris McKinney, Interim Development Services Director/ Deputy City Manager and Julie Procopio, City Engineer

PREVIOUS ACTION
On July 19, 2023 , the City Council approved a contract with Fehr & Peers to prepare a Comprehensive Active Transportation Strategy (CATS) and Mobility Element Update. The effort will also include a grant- funded community transportation needs assessment to evaluate opportunities for microtransit.

BACKGROUND
“Transportation” is commonly defined as the movement of goods and people, which, in a municipal government setting, usually includes a surface transportation system of infrastructure and equipment.

Transportation affects almost every aspect of our lives. Transportation helps shape an area's economic health and quality of life; provides for the mobility of people and goods; provides access to services; and influences patterns of growth and economic activity.

There are a number of federal, state, regional and local agencies involved in the planning, construction, maintenance and operation of surface transportation. Notable agencies include Federal Highway Administration (FHWA), Federal Transit Administration (FTA), Caltrans, California State Transit Agency (CalSTA), North County Transit District (NCTD), San Diego Association of Governments (SANDAG), Counties and Cities. Staff’s presentation will outline the focus of these agencies and our key interaction points.

Some transportation agencies, including Caltrans, NCTD and the City of Escondido, are responsible for managing aspects of the transportation system within their respective jurisdictions. The area of 539
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jurisdiction, referred to as a public right of way, is reserved for public transportation purposes. Agencies responsible for regulating the public right of way may allow changes to the transportation facility, such as the addition of other uses consistent with the intended transportation use. These changes could include, for example, the installation of utilities, through an encroachment permit. Public utilities have the right to locate their facilities within certain public rights of way; however, the agency responsible for managing the right of way controls the time, place and manner of any encroachment.

As the agency responsible for managing local public streets, the City ma intains control over local public right of way, including making decisions on lane configuration and improvements along the parkway, defined as the area between the curb line and the private property line. It is through an encroachment permit process that transportation improvements are reviewed, approved and implemented within City right of way.

TRANSPORTATION PLANNING:

According to FHWA, “The United States depends on a safe and efficient transportation system to strengthen communities, provide access to jobs, services, and centers of trade, and, retain and enhance our economic competitiveness in the global marketplace.” The importance of the transportation system has been underscored by federal law setting requirements for transportation planning.

Transportation planning is a cooperative process designed to foster involvement by all users of the system, such as the business community, community groups, environmental organizations, the traveling public, freight operators, and the general public, through a proactive public participation process . Federal transportation planning law 23 USC 134(d)(1) designates Metropolitan Planning Organiz ations (MPO) as the responsible agency for transportation planning within designated metropolitan areas over 50,000 population. The designated MPO in San Diego is SANDAG. The scope of the planning process and the regional transportation plan (RTP) are outlined in the federal transportation planning law. In addition, this law includes the requirement that MPOs prepare a transportation improvement plan (TIP) that reflects the investment priorities established in the current RTP.

MOBILITY ELEMENT UPDATE:

While SANDAG is responsible for preparation of the RTP, transportation planning and land use decisions of local agencies form the basis for regional planning activities. Recognizing this, regional planning efforts begin at the local level and are based on each jurisdictions General Plan, including Land Use and Mobility Elements.

In November 2023, the first step of preparation of the CATS and Mobility Element Update will begin with community outreach with the goal of gaining an understanding of how the City’s transportation system can better meet the needs of the community. An online tool has been developed to facilitate community feedback, as well as a series of in-person outreach meetings, and a social media presence. 540
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Development of the CATS and Mobility El ement Update is expected to occur over the next 18 -months, and will , in addition to outreach effort s described above, include a data collection and performance evaluation phase, a network development phase and project prioritization phase . The data collec tion phase will include evaluation of existing conditions of the City’s transportation network, including an inventory of sidewalks, bike lanes and vehicle lanes, and performance of the system, such as measuring the current ‘level of service’ for each transportation mode. This data, along with community input, will help de velop the network of transportation facilities that are needed to meet existing and projected demand. Finally, after receiving additional community input, the City Council will have information necessary to determine the prioritized list of transportation projects and programs.

This workshop is expected to be the first of several discussions with the City Council and the community on transportation priorities. The Mobility Element Update provides an opportunity to plan a transportation system that will improve the economic health and quality of life for the Escondido community.
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KEY-

CONSENT CALENDAR CURRENT BUSINESS

PUBLIC HEARING WORKSHOP
11/8/2023 - NO MEETING (VETERAN'S DAY)
11/15/2023
CONSENT CALENDAR - (J. GOULART) - BID AWARD FOR RFB NO. 24-03 CENTRAL PLANT CHILLER NO. 3 REPLACEMENT PROJECT - Request the City Council adopt Resolution No. 2023-143, authorizing the Mayor to execute a Public Improvement Agreement with the lowest responsive bidder, A.O. Reed & Co.

CONSENT CALENDAR - (J. GOULART) - BID AWARD FOR RFB NO. 24-05 LIVE RAINBOW TROUT Request the City Council adopt Resolution No. 2023-144, authorizing the Mayor to execute a Public Services Agreement with the lowest responsive bidder.

CONSENT CALENDAR - (C. MCKINNEY) - CONSULTING AGREEMENT FOR ON CALL ENGINEERING REVIEW SERVICES - It is requested that the City Council adopt Resolution 2023-141 authorizing the Mayor to execute on behalf of the City a consulting services agreement with HR Green Pacific Inc., for on call engineering review services for the Si Fi FiberCity project.

CONSENT CALENDAR - (A. MORROW) – ACCEPTANCE OF $7,800 GRANT FOR WATER CONSERVATION OUTREACH MATERIALS - It is requested that the City Council adopt Resolution 2023-148 authorizing the Mayor to accept $7,800 grant money from the Metropolitan Water District to purchase water conservation outreach materials to be distributed to the community.

CURRENT BUSINESS - (C. MCKINNEY) - COMMUNITY FACILITIES DISTRICT (CFD) 2020-01 (PUBLIC SERVICES) ANNUAL SPECIAL TAX LEVY - Request the City Council adopt Resolution No.2023-XX that will set the Special Tax Levy for Community Facilities District No. 2020-01 (Public Services) for Fiscal Year 2023/24.

PUBLIC HEARING - (C. MCKINNEY) - PL23-0176/ADM19-0032 VERMONT AVENUE APARTMENTS - It is requested that the City Council waive an existing condition of approval requiring funding ongoing operational costs of providing municipal services for an approved 44-unit apartment project.

CURRENT BUSINESS - (A. MORROW) - PROPOSED EDI RATE ADJUSTMENTS - Request the City Council adopt Resolution No. 2023-136, approving the requested annual residential and commercial solid waste and recycling rate adjustments, pursuant to the terms of the City’s adopted Solid Waste and Recycling Franchise Agreement with Escondido Disposal.

CURRENT BUSINESS - (J. SCHOENECK) - SHORT-TERM RENTAL ORDINANCE CURRENT BUSINESS - (D. WHITE) - COUNCIL RESOLUTION OJECTING TO ANY NEW TAXES, CHARGES OR FEES PROPOSED BY SANDAG ON

MOTORISTS TO USE ALREADY BUILT LOCAL ROADS AND HIGHWAYS CURRENT BUSINESS - (D. WHITE) - COUNCIL RESOLUTION OPPOSING THE REMOVAL OF PRIORITY TRANSIT LANES CURRENT BUSINESS - (Z. BECK) - PUBLIC ART COMMISSION INTERVIEWS - Request the City Council interview applicants to fill an unscheduled vacancy on the Public Art Commission.
11/22/2023 - NO MEETING (THANKSGIVING)
11/29/2023 - NO MEETING

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Escondido City CouncilNovember 1, 2023

Escondido City Council
November 1, 2023