Escondido City Council
December 13, 2023

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IT IS SO STIPULATED.

Dated: _______________, 2023 JOSEPH OLIVA & ASSOCIATES, P.C.

By:

Joseph L. Oliva, Esq.

Matthew R. Toothacre, Esq.

Attorneys for Plaintiff / Cross-Defendant,

TOUCHSTONE MF FUND I, LLC

Dated: _______________, 2023 OFFICE OF THE CITY ATTORNEY Michael R. McGuinness, City Attorney
Keith Phillips, Assistant City Attorney
By:

Mark P. Bookholder
Deputy City Attorney

Attorneys for Defendant / Cross-
Complainant, CITY OF ESCONDIDO

IT IS SO ORDERED.

Dated: ________________, 2023
Blaine K. Bowman, Judge of the Superior Court

Exhibit "2"
Resoution No. 2023-164
Exhibit "A"

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Resolution No. 2023-164
Exhibit "B"

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Resolution No. 2023-164
Exhibit "B"

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Resolution No. 2023-164
Exhibit "B"

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Resolution No. 2023-164
Exhibit "B"

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Resolution No. 2023-164
Exhibit "B"

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STAFF REPORT

December 13, 2023
File Number 0610-90

SUBJECT

COUNCIL COMPENSATION

DEPARTMENT
City Attorney

RECOMMENDATION
Request the City Council adopt Ordinance No. 2023 -19R providing for an amendment to Escondido Municipal Code § 2-28(a) and § 2-28(b) increasing the salary for councilmembers and the mayor, respectively, pursuant to Government Code § 36516 and Council Rules of Policy and Procedure Section B(9).

Staff Recommendation: Approval (City Attorney: Michael R. McGuinness, City Attorney) Presenter: Michael R. McGuinness, City Attorney

FISCAL ANALYSIS

Adoption of the salary adjustment would result in an annual increase to the General Fund budget reflective of the salary increases of the councilmembers and mayor and will be effective in December 2024.

PREVIOUS ACTION

On December 6, 2023, the Council heard and considered staff’s presentation on the potential adoption of Ordinance No. 2023 -19 and thereafter, a majority of the council made factual findings demonstrating the need for increased city councilmember and mayoral compensation.

The last increase to the council’s and mayor’s salaries was approved in December 2017, in the amount of 10%, pursuant to Ordinance No. 2017-15R, with an effective date of December 2018. Prior to that, the Council approved a 10% salary increase in 2015, effective December 2016, pursuant to Ordinance No. 2015 -24. The Council considered but refused any compensation increase s in December of 2019 and December 2021.

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BACKGROUND

Council Compensation Amendment Procedure.

The City Council has discretion to increase its salary, within limits, pursuant to the Council Rules of Procedure and Policies, the Escondido Municipal Code, and state law. There is no other legislative body, committee, person or mechanism currently in place on a local or state level to make this salary decision.

Pursuant to the Council Rules last re-adopted in Resolution No. 2023 -158R (Rules), the Council is required to have an agenda item during a meeting in December of odd -numbered years for the purpose of determining whether or not to act regarding City councilmember and mayoral compensation. Rules, Section B(9). The effective date of any increase is the following year after the new council is sworn in. In this case , any increase would be effective upon the swearing in of the new City Council on December 11, 2024. The underlying purpose of including this provision in the Rules was to ensure that the City Council addresses on a regular basis the politically sensitive issue of voting themselves a raise , to not allow compensation stagnation to negatively impact public interest in serving on the council, and to fairly compensate councilmembers for their services.

Pursuant to recently enacted S enate Bill 329, amending Government Code § 36516, the council has already considered the adoption of a salary increase at a first regular public meeting of the City Council. On December 6, 2023, pursuant to Government Code § 36516(g)(2), the council held an open regular council meeting to consider, discuss and take public comment on any proposed salary increase which must include “findings demonstrating the need for the increased compensation.”

The council made a record of the need to increase the salary from the current ordinance amo unts during the meeting and directed the City Attorney to finalize Ordinance No. 2023 -19 to include the increase of 7.5% for city councilmembers and 6% for the mayor. A majority of the council determined that a 1.25% increase per year for councilmembers a nd 1% per year for the mayor, since the salary was last adjusted, was a reasonable, appropriate and lawful salary increase.

This council meeting is being held not less seven days after the first consideration of a salary ordinance pursuant to Government Code § 36516(g)(3), and the City C ouncil may now adopt an amendment to the salary ordinance increasing the amount of councilmember and mayoral salary as directed.

Allowable Amount of Increase.

The Escondido Municipal Code sets councilmember and mayoral compensation via the adoption of or amendment to an ordinance. Currently, pursuant to Section 2 -28(a), the salary for all councilmembers is $2,088.43 per month ($25,016.16/year). Pursuant to § 2-28(b), the mayor 166
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receives the councilmember salary and an additional $3,806.66 per month for a total of $5,895.09 per month ($70,741.08/year) consistent with Government Code § 36516.1. This additional amount is intended to reflect the citywide responsibi lities for the mayor. Consistent with state law, the Council also receives the same benefits as other City employees and the value of those benefits are not included in the salary amount.

On December 6, 2023, t he City Council directed the City Attorney by a vote of 3 - 2 (Deputy Mayor Garcia and Councilmember Martinez no) to bring back a final Ordinance for review and consideration and vote to adopt Ordinance No. 2023-19R.

Conclusion.

In light of the foregoing, it is requested that the City Council adopt Ordinance No. 2023-19R amending Escondido Municipal Code § 2-28 increasing the current councilmember and mayoral salary amounts by 7.5 % to $2,242.06 per month, and by 6% to $4,035.06 per month, respectively, effective at the time the next City Council is sworn into office in December 2024.

ORDINANCES
a. Ordinance No. 2023-19R

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ORDINANCE NO. 2023-19R

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ESCONDIDO, CALIFORNIA, AMENDING SECTIONS 2-28(a)
and (b) OF THE ESCONDIDO MUNICIPAL CODE, AND

AMENDING THE SALARY SCHEDULE FOR CITY COUNCIL

MEMBERS AND THE MAYOR

The City Council of the City of Escondido, California, DOES HEREBY ORDAIN as follows:

SECTION 1. The City Council makes the following findings:

WHEREAS, the privilege to serve on the City Council of the City of Escondido (City Council) requires the expenditure of significant time during weekdays and weekends, and at all times of the day at City Hall, at local public agency offices for meetings, and around the community for various civic events; and WHEREAS, City Council service requires education, training and experience in numerous governmental issues including conflicts of interest , Ralph M. Brown Act compliance, budgets, labor negotiations, and often involves reviewing substantial staff reports and related legal documents ; reviewing and considering local and state legislation; attending to representative assignments at regional government body meetings; staying informed on current local and state issues; and reviewing financial reference materials, budgets and reports; and
WHEREAS, the City Council has discretion to increase its salary, within limits, pursuant to the Council Rules of Procedure and Policies, the Escondido Municipal Code, and state law; and WHEREAS, pursuant to the Council Rules last re-adopted in Resolution No. 2023-158R (Rules), the Council is required to have an agenda item during a meeting in December of odd-numbered years for the purpose of determining whether or not to act regarding City councilmember and mayoral compensation. The effective date of any increase is the following year after the new council is sworn in consistent with Government Code § 36516.5. In this case, any increase would be effective upon the swearing in of the new City Council on December 11, 2024; and 168
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WHEREAS, the purpose of including a Rules provision requiring review of council salaries was to ensure that the City Council addresses on a regular basis the politically sensitive issue of vo ting themselves a raise, to not allow compensation stagnation to negatively impact public interest in serving on the council, and to fairly compensate councilmembers for their services ; and WHEREAS, the last increase to the council’s and mayor’s salari es was approved (by a vote of 3-2) in December 2017, in the amount of 10%, pursuant to Ordinance No. 2017-15R, with an effective date of December 2018. Prior to that, the Council approved a 10% salary increase in 2015, effective December 2016, pursuant to Ordinance No. 2015-24; and
WHEREAS, from 2018 to present City employees have seen yearly average increases of between

1.42% and 3.55% per year, depending on classification and bargaining unit, and a total cumulative (but not compounded) increase of not less than 8.5% in their salaries over that same time period; and WHEREAS, the current salary of Escondido city councilmembers is $2,088.43 per month and the current salary of the mayor is $5,895.09 per month pursuant to Escondido Municipal Code § 2- 28(a) and (b) and Government Code § 36516.1; and
WHEREAS, pursuant to Government Code § 36516(a)(4)(A), the City Council may increase its salary by as much 5% for each calendar year from the operative date of the last adjustment of the salary which in this case would be up to 30% given no salary increase since December 2018; and WHEREAS, a continuing failure or refusal to increase the City Council’s salary will result in a significant departure from reasonable compensation putting future City Council’s in the very difficult position of having to make up the difference; and
WHEREAS, low City Council compensation can hinder potential candidates from running for office or performing competently once in office given the high cost of living in San Diego County and the need for outside employment; and
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WHEREAS, there is no other legislative body, committee, agency, person or mechanism currently in place on a local or state level to make this salary decision; and WHEREAS, it is in the best interests of the residents of the City of Escondido that their councilmembers are adequately paid to perform the services that are required of this position and that Ordinance No. 2023-19 be adopted.

SECTION 2: That the above recitals are true and t he City Council has reviewed and considered Ordinance No. 2023-19 and makes such factual findings as are required pursuant to Government Code § 36516(g).

SECTION 3. Proper notices of this regular City Council meeting have been given consistent with the Ralph M. Brown Act and Government Code § 36516.

SECTION 4. That Section 2-28 of the Escondido Municipal Code is hereby repealed in its entirety and replaced to read as follows:
(a) Effective on the date the city council members to be elected at the 20 24 regular municipal election are sworn into office, the members of the city council shall receive a monthly salary of Two thousand, two hundred, forty -two dollars and six cents ($2,242.06) per month in accordance with the provisions of section 36516 of the Government Code.
(b) In addition to the salary provided for council members in subsection (a), the mayor of the City of Escondido shall receive a monthly salary of Four thousand , thirty -five dollars and six cents ($4,035.06), in accordance with the provisions of section 36516.1 of the California Government Code.

SECTION 5. SEVERABILITY. If any section, subsection sentence, clause, phrase, or portion of this ordinance is held invalid or unconstitutional for any reason by any court of competent jurisdic tion, such 170
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portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portions.

SECTION 6. As of the effective date of this ordinance, all ordinances or parts of ordinances in conflict herewith are hereby repealed.

SECTION 7. The City Clerk is hereby directed to certify to the passage of this ordinance and to cause the same or a summary to be published one time within 15 days of its passage in a newspaper of general circulation for the City of Escondido.
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STAFF REPORT

December 13, 2023
File Number 0685-10

SUBJECT

FISCAL IMPACT ANALYSIS OF FUTURE DEVELOPMENT AND CONSIDERATION OF CHANGES TO THE CITY’S SERVICES COMMUNITY FACILITIES DISTRICT LEVIES

DEPARTMENT

Development Services

REQUEST

Request that the City Council receive and file the Fiscal Impact Analysis (“FIA”) of Future Development.

Additionally, staff recommends the City Council adopt Resolution No. 2023-156 amending the previously set levy of special taxes (“levy” or “levies”) for the City’s Services Community Facilities District (“Services CFD”). Multiple options are presented in this report and will be presented at the City Council meeting for the City Council’s consideration.

Staff recommend that the City Council adopt the resolution and select “Option H” from among the presented options. This option will eliminate the existing levies by setting all of them to $0 per unit per year for all residential housing types (Single Family – Large Lot, Single Family – Small Lot, Townhomes, and Apartments/Condos).

The draft resolution includes several other options that the City Council could select. More information regarding these options and the FIA results can the found in the “Background” section of this report. A summary of the options follows:

1. “Option A” is to take no action and leave the Services CFD levies as they were set on August 9, 2023 by the City Council via Resolution 2023 -82. The City Council would then reconsider the levies in August 2024 as part of the annual levy setting process. This option is not recommended by staff because it would ignore the analysis of the FIA and would therefore not account for the changes that have occurred since the original Services CFD was analyzed, including increases in projected property tax revenue and the number of anticipated future developed units.

2. “Options B, C, and D” would set no levies for Single Family – Large Lot and Single Family – Small Lot because these two residential development types were found to have a net positive fiscal impact. Levies would be set for Townhomes and Apartments/Condos, with the cost of Affordable Housing recovered via increased levies to Townhomes and Apartments/Condos. The three options would each fund: (“Option B”) all projected General Fund needs, including Public Safety Target Service Levels; ( “Option C ”) only Public Safety Depa rtments ( i.e., Police Department and Fire Depart ments), including Public Safety Target Service Levels; or (“Option D”) only Public Safety Departments, not including Public Safety Target Service Levels . “Option B” is the baseline recommendation of the FIA study because the study assumes that the City 172
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Council will set policy to recover the costs of services to Affordable Housing. These options are not recommended by staff because the policy of distribu ting the cost of service for Affordable Housing to other categories of housing would raise questions about the fairness of such a policy.

An attempt to collect levies from Affordable Housing would run counter the City Council past practice of incentivizin g Affordable Housing by exempting development with affordable units from the Services CFD. Additionally, the levy in “Option B” for Apartments/Condos is in excess of those allowed under the current CFD Ordinance.

3. “Options E, F, and G” would set no levies for Single Family – Large Lot and Single Family – Small Lot because these two residential development types were found to have a net positive fiscal impact. Levies would be set for Townhomes and Apartments/Condos, without the cost of Affordable Housing be ing recovered. The three options would each fund: (“Option E”) all projected General Fund needs, including Public Safety Target Service Levels; (“Option F”) only Public Safety Departments, including Public Safety Target Service Levels; or (“Option G”) only Public Safety Departments, not including Public Safety Target Service Levels. These options are not recommended by staff. “Option E” will not bring the City’s Services CFD into better alignment with other North County cities’ CFDs, and “Options F and G” would set levies that are too low to recover a meaningful amount of revenue in excess of the City’s cost of administration.

4. “Option H” would set the levies to $0 per unit per year, effectively eliminating the Services CFD through at least August 2024. As described earlier, this option is recommended. The City Council may, at its discretion, direct staff to prepare a draft Ordinance for consideration to repeal Ordinance 2020-10, which authorized the levy of special taxes.

Staff Recommendation: Receive and File FIA and adopt Resolution No. 2023-156, selecting “Option H”. (Development Services: Christopher W. McKinney, Interim Director of Development Services)

Presenter: Christopher W. McKinney, Interim Director of Development Services

FISCAL ANALYSIS

Since the existing Services CFD was created in 2020, revenues from the CFD have grown from approximately $134,000 at 216 parcels in FY 2022 to a projected amount of $443,000 at 556 parcels in the current fiscal year. If the City develops residential properties as predicted by the San Diego Association of Governments (“SANDAG”) projection by 2050, the existing Services CFD is projected to generate approximately $4.6 million annually in revenue in today’s dollars, assuming the City Council updates the CFD levies periodically to adjust for inflation. The projected annual revenue via the Services CFD in 2050, in today’s dollars and assuming periodic inflationary increases for each option presented in this report, is as follows:

Option A: $4.6 million
Option B: $4.5 million
Option C: $1.8 million
Option D: $1.1 million
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Option E: $2.3 million
Option F: $0.5 million
Option G: Less than $0.1 million
Option H: $0

These projected annual revenues assume that approxi mately 5,560 housing units have been constructed by 2050.

The revenues in the intervening years until 2050 will depend on the pace of residential development in the City. Assuming a constant rate of development, the revenues earned via the Services CFD would rise linearly from the present to the projected 2050 levels. If any option other than Option A (Options that change the levies) is chosen, the City will be subject to a fee of $8,340 ($15 per parcel) for the changes.

PREVIOUS ACTION
On January 15, 2020, the City Council adopt ed Resolution No. 2020 -02 directing staff to prepare documents necessary for the formation of a Citywide Community Facilities District (the Services CFD).

On April 8, 2020 , the City Council adopted Resolution Nos. 2020 -24 and 2020 -25 declaring its intent to establish Community Facilities District (“CFD”) No. 2020-1, a Citywide CFD.

On May 13, 2020, the City Council adopted Resolution No. 2020 -44 establishing Community Facilities District (“CFD”) No. 2020-1, a Citywide CFD. The City Council also considered, for the first time, Ordinance 2020-10 authorizing levy of special taxes. This Ordinance was formally adopted at a subsequent City Council meeting.

On November 16, 2022, the City Council received an informational update concerning the Services CFD and directed staff to initiate another FIA of Future Development.

On August 9, 2023, the City Council adopted Resolution 2023 -82, setting the Special Tax Levy for Community Facilities District No. 2020-1 (“Public Services CFD”) for Fiscal Year 2023/24. Adoption of this resolution was the most recent setting of the Services CFD levies.

BACKGROUND
In November 2022, the City Council, based on public comments and an internal review of priorities and opportunities, directed staff to initiate another study of the fiscal impacts of development. Specifically, the City Council expressed concern about the reality of the future buildout projection used in the analysis, the negative impact on development that CFD levies might have, and the areas of the future General Fund budgets that would be funded (i.e., all the General Fund or the Public Safety departments only).

The City contracted with NBS, based in Temecula, CA, to complete the Report for Fiscal Impact Analysis of Future Development. A copy of the Fiscal Impact Analysis is attached to this Resolution as Attachment 174
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“1”. Based on feedback from the City Council and stakeholders, NBS performed the study with several differences in underlying assumption and methodology, which are summarized below:

1. The new study examined costs assuming General Plan and SANDAG buildout projections for the City, including an assumption that future development will include larger numbers of multi-family units and fewer single-family residential (“SFR”).

2. The previous study focused on the unit costs of each development type (i.e., Large-lot SFR, small- lot SFR, Townhomes, and Apartments/Condos). Since SFR unit types are expected to be smaller in number than the other types in the final buildout, their impact on the cost to the City of their development was larger compared to the new study with its projection of fewer SFR units.

3. The new study includes consideration of unbudgeted needs to bring staffing levels in the Public Safety departments of the General Fund up to “Target Service Levels .” If adopted by the City Council, some options for levies include funding to not only meet the funding needs to provide service to future new development residents, but also to correct existing deficiencies in the Public Safety Departments.

4. The new study scaled expenditures by a “Demand Adjustment %” to account for the fact that a certain percentage increase in the population will not cause the same % increase in cost. For City Services related to Public Safety, Public Works, and Development Services, these percentages are high because increased population translates to a similar increase in costs . The Demand Adjustment for t hese services is high (as high as 95%). For governmental services (e.g., Clerk, Finance Department), the staff and resources needed to provide these services in a larger City do not grow in proportion with the population, so the Demand Adjustment for these Departments is smaller (~50%).

5. The study updated projected property tax revenues to reflect property value increases since the original FIA completed in 2019 and the FIA completed earlier in 2023.

SUMMARY OF THE REPORT RESULTS
The report first estimates the number of additional persons to be receiving services from the City in 2050, based on SANDAG projections of population growth. “Employee population” does not refer specifically to employees of the City government, but it ref ers to all persons employed within the City while living outside the City. The report assumes that the cost to provide services to each such person is approximately half of the cost to provide services to a resident of the City. Tables 1 through 3 of the report show that by 2050, the effective increase in the number of people receiving City services will be about 28,000 people.

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Revenue Projections
Section 3 of the report estimates the increased revenue projected for the City as a result of new development through 2050, primarily through property taxes and sale taxes. This analysis examines the allocation of housing over various income categories and housing types (Tables 4 through 7), recognizing that low-income units (i.e., Affordable Housing) will be exempt from certain property taxes.

Further calculations estimate the property taxes to be realized by the City from the different categories of residential development, using valuation estimates based on property values in September 2023, and adjusting for reductions in taxes that can be collected on properties in the former Redevelopment Project Area (“RDA Zone”) through 2035 (Tables 8 through 15). Similar calculations estimate property tax revenue projected from future non -residential developme nt (e.g., commercial and industrial development), property tax in lieu of Vehicle Licensing Fees (“VLF”), and other taxes related to the sale and transfer of property (Tables 16 through 24).

The report then projects sales tax revenue to be realized from new residents and those employed within the City but living elsewhere. Some notable assumption from these calculations include: 1. The median home price to income ratio is 8.54, according to the 2021 State of the Nation’s Housing Report by the Joint Center for Housing Studies of Harvard University (“Harvard Study”) ; 2. The average household income of residents of Affordable Housing is 60% of income of residents of apartments and condos; and

3. Approximately 19% of income is spent on Taxable Retail Sales. Th e analysis also assumed that 60% of the spending by non-residents who are employed in the City is subject to sales tax within the City (Tables 25 through 28).

The report also summarizes other projected City revenue, including permitting fees and charges fo r services (Tables 29 through 31). In summary, the total projected annual revenue from new development is projected to be approximately $30.6 million, with $16.7 million from sales taxes and $8.2 million from property taxes. Using data from the previously described revenue analysis, these projected future revenues are allocated across the development types, with the majority - $21.8 million - allocated to commercial property, and $4. 3 million all ocated to Apartments/Condos – the largest allocation to a residential property type (Table 33).

Expense Projections
In analyzing the projected expenses, the report first focuses on the current expenses by applying the Demand Adjustment Percentages previous ly described for each department to the estimated FY 2023 expenses, leading to an adjusted annual expense of $11 6.0 million. Applying this figure to the approximately 181,000 people served, yielding an expense per person of $641 (Table 34 through 36).

The analysis then delves into Target Service Levels for the Police and Fire Departments. The Target Sworn Police Ration is 1.30 per 1,000 persons served, compared to the actual ratio of 1.06. To meet its Target Sworn Police Ratio and provide a target level of Police Services to all future residents, the City would 176
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require an additional 37 sworn Police Officers , with the portion of the cost of these Officers being $850,000 annually. (Tables 37 through 39).

Similar Target Service Levels are analyzed for the Fire Department, though the method used is not a target number of employees per 1,000 persons served. Instead, the Fire Department provided an additional 25 positions needed to achieve target service levels, with eight of these positions being Emergency Medical Technicians. Using similar calculations to those used to calculate the cost of achieving target service levels for the Police Department, the cost achieving these service levels for the Fire Department is $3 83,000 (Tables 40 and 41).

The projected Target Service Level expenditures are combined with the projected overall expenditure to yield at total future expenditure of $1 9.0 million. These expenditures are distributed across the various development types, using assumption about occupancy of the var ious residential types. For example, it is assumed that newly developed Single -Family and Small Lot Single -Family have 2.49 persons per unit, while new development Townhomes and Apartment/Condos have 2.06 persons per unit, maintaining the current MFR/SFR persons per unit ratio in the City of 0.83. Applying these assumptions to the number of assumed units, and assumption about the number of employees served by commercial and industrial development allows for allocation of the future expenditure to each dev elopment type (Tables 42 and 43). The highest allocated expenditures are to Commercial development and Apartments/Condos with $6.0 million and $6.5 million annually, respectively.

Fiscal Impact
With projected revenues and expenses allocated to each development type, the fiscal impact of each can be estimated (Table 45). The table makes clear that future residential development, when taken separately from commercial and industrial development, results in more expenditures to provide services to new residents than these new residents contribute in revenue (e.g., sales tax, property tax, other fees).

However, closer examination of the different residential property development types reveals significant differences in the impacts, with large -lot single family residential and small-lot single family residential generating more revenue that expenses. All other residential property types (Townhomes, Apartments/Condos, and Affordable Housing) are project ed to generate less revenue than future expenses.

The study concludes with a recommendation for the CFD levies of “Option B”. However, staff are not recommending “Option B”, primarily because it distributes the fiscal impact of Affordable Housing to other housing categories. The levy amounts in all other options are calculated by staff based on the data produced in the FIA report.

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TABLES SHOWING OPTIONS FOR ADJUSTMENTS TO THE EXISTING SERVICES CFD LEVIES The table on the following page shows the existing levies set by the City Council on August 9, 2023, and the projected revenue in 2050 if the anticipated number of units are constructed. These levies were set during the County’s typical cycle of setting levies that appear on property owners’ property tax bill. The deadline for setting levies in each fiscal year (FY) is August 10 of the year (about six weeks into the FY).

Agencies may adjust levies at any time during the FY, as long as levies are reduced. The County charges a fee for these “out of cycle” changes of $15 per parcel. There are presently 556 parcel s in the Services CFD, resulting in a total fee to be paid to the County by the City of $8,340. “Option A” would retain these levies.

Tables reflecting the optional levies of “Option B”, “Option C”, and “Option D” can be found in the attached draft Resolution 2023-156.

Tables reflecting the option levies of “Option E”, “Option F”, and “Option G”, with additional information for each, can be found on the following pages.

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“Option E” would collect no revenue from Single Family Residential units (Large- and Small-Lot) because these development types were shown to have a net positive fiscal impact in the updated FIA . Existing levies would be decreased by 62% for Townhomes and by 38% for Apartments/Condos. These reductions reflect that this option does not recover the fiscal impact of Affordable Housing, but it does recover the impact of Townhomes and Apartments/Condos for all General Fund impacts, totaling $2.3 million annually. This option would not bring the Services CFD into alignment with other North County CFDs, which fund only Public Safety costs.

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“Option F” would collect no revenue from Single Family Residential units because these development types were shown to have a net positive fiscal impact in the updated FIA. Additionally, no levy would be assessed on Townhomes. The reduction in projected negative fiscal impact of this option, because it funds only Public Safety Departments (with Target Service Levels), results in a net -positive fiscal impact for Townhomes. Existing levies would be decreased by 85% for Apartments/Condos. This option does not recover the fiscal impact of Affordable Housing, and it recovers the impact of Apartments/Condos for only Public Safety Department fiscal impacts , totaling $0.5 million annually. This projected net revenue in 25 years would not be realized at present, with only about 1/10th of the number of units in the CFD at present.

Therefore, the administration cost of the CFD would likely exceed its revenue for several years. This option would bring the Services CFD into alignment with other North County CFDs.

The drastic percentage increases in the proposed levies for this option can be explained by examining the overall negative fiscal impacts of each development type . The net impact of each individual type is relatively small compared to net impact of all deve lopment, so the changes to the net impact ( e.g., by removing all General Fund impacts excepting Public Safety) can result in large reductions, or even elimination, of the negative impact of an individual development type.

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“Option G” would collect no revenue from Single Family Residential units and Townhomes because these development types were shown to have a net positive fiscal impac t (see discussion of “Option F”) . This option further reduces the impacts addressed by the Services CFD by eliminating Target Service Level funding. Existing levies would be decreased by 98% for Apartments/Condos, to a mere $20 per unit per year. This option does not recover the fiscal impact of Affordable Housing, and it recovers the impact of Apartments/Condos, totaling less than $0.1 million annually. This option would bring the Services CFD into alignment with other North County CFDs. The administration cost of the CFD would never be recovered by the revenues generated.

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“Option H” is a very simple option which proposes to set all Services CFD levies to $0 per unit per year. If the City Council desires to limit the Service s CFD to the fiscal impacts of development for Public Safety Departments only, the recent increases in projected property tax revenue – coupled with a low expenditure per capita on services when compared to other cities in San Diego County – lead to dwindling benefit from, and indeed a dwindling need for, continued Services CFD levies.

If the City Council chooses “Option H”, they may also consider directing staff to prepare a draft Ordinance that would repeal Ordinance 2020-10, thus formally eliminating the Services CFD. If the levies are set to $0, but Ordinance 2020-10 is not repealed, the City Council could choose to enact Services CFD levies by simple resolution at any point in the future.

RECOMMENDATION
Staff recommends that the City Council adopt Resolution 2023-156 with “Option H” , setting all Services CFD levies to $0 . Staff also request City Council provide direction concerning preparati on of a draft Ordinance that would repeal Ordinance 2020-10.

ATTACHMENTS
a. Attachment “1” Report on Fiscal Impact Analysis of Future Development

RESOLUTIONS
a. Resolution No. 2023-156
b. Resolution No. 2023-156 Exhibit “A”
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nbsgov.com
Prepared by:

Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Toll free: 800.676.7516
Report For:

Fiscal Impact Analysis of Future Development
November 2023
Attachment "1"
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TABLE OF CONTENTS

Section 1 | INTRODUCTION .................................................................................................... 1 Section 2 | BACKGROUND ...................................................................................................... 2 Analysis Methodology .............................................................................................................. 2 Current City Persons Served .................................................................................................... 3 Future City Persons Served ...................................................................................................... 4 Section 3 | REVENUE ESTIMATE ............................................................................................. 5 Property Tax Revenue .............................................................................................................. 5 Property Tax in Lieu of Vehicle License Fee (“VLF”) Revenue ............................................... 13 Documentary Transfer Tax ..................................................................................................... 14 Sales Tax Revenue .................................................................................................................. 15 Other City Revenue ................................................................................................................ 19 Revenue Summary ................................................................................................................. 20 Section 4 | EXPENDITURES ESTIMATE .................................................................................. 22 Current Service Level Expenditures ....................................................................................... 22 Allocation of Expenditures to Population Served .................................................................. 23 Current Service Level Expenditures per Person Served ......................................................... 24 Target Service Levels – Police ................................................................................................ 25 Target Optimal Service Levels – Fire ...................................................................................... 26 Total Expenditures Summary ................................................................................................. 28 Section 5 | FISCAL IMPACT ................................................................................................... 29 Section 6 | FISCAL IMPACT FUNDING OPTIONS .................................................................... 30 Community Facilities District ................................................................................................. 30 CFD Special Tax Recommendation ......................................................................................... 31

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LIST OF TABLES

Table

1. Current Persons Served .................................................................................................................... 3 Table 2. Future Persons Served ...................................................................................................................... 4 Table 3. Change in Persons Served................................................................................................................. 4 Table 4. Growth in Households ...................................................................................................................... 6 Table 5. Allocation of Future Housing to Various Household Income Categories ......................................... 6 Table 6. Adjusted Allocation of Future Housing to Various Household Income Categories .......................... 6 Table 7. Future residential Development within City .................................................................................... 7 Table 8. Total Future Assessed Value of Residential Development – RDA Zone ........................................... 8 Table 9. Total Future Assessed Value of Residential Development – non- RDA Zone ................................... 8 Table 10. Current Assessed Value of Future Residential Development (RHNA Sites) – RDA Zone .................. 8 Table 11. Current Assessed Value of Future Residential Development (RHNA Sites) – non-RDA Zone .......... 8 Table 12. Incremental Assessed Value of Future Residential Development – RDA Zone ................................ 9 Table 13. Incremental Assessed Value of Future Residential Development – non-RDA Zone ........................ 9 Table 14. Property tax Revenue Generated by Future Residential Development – RDA Zone ..................... 10 Table 15. Property tax Revenue Generated by Future Residential Development – non-RDA Zone .............. 10 Table 16. Future Development Employee Population ................................................................................... 11 Table 17. Estimated Non-residential Building Square Feet to Develop ......................................................... 11 Table 18. Current Assessed Value of Future Non-residential Development.................................................. 12 Table 19. Commercial and Industrial Price per Building Square Foot ............................................................ 12 Table 20. Incremental Assessed Value of Future Non-residential Development .......................................... 13 Table 21. Property Tax Revenue Generated by Future Non-residential Development ................................. 13 Table 22. Property Tax in Lieu of VLF Ratio .................................................................................................... 14 Table 23. Property Tax in Lieu of VLF Revenue .............................................................................................. 14 Table 24. Documentary Transfer Tax Generated by Future Development .................................................... 15 Table 25. Residential Household Incomes ..................................................................................................... 16 Table 26. Sales Tax Revenue Generated by Increase in Residential Population ............................................ 17 Table 27. Sales Tax Revenue Generated by Increase in Employee Population .............................................. 18 Table 28. Sales Tax Revenue Generated by Future Commercial Development ............................................. 19 Table 29. Other City Revenue ......................................................................................................................... 19 Table 30. Other City Revenue per Person Served/Employee ......................................................................... 20 Table 31. Other City Revenue Generated by Future Development ............................................................... 20 Table 32. Revenue Summary .......................................................................................................................... 21 Table 33. Revenue Summary By Future Development Type .......................................................................... 21 Table 34. Current Service Level Expenditures ................................................................................................ 23 Table 35. Expenditures Allocation to Persons Served, Residents Served, or Employees Served .................. 24 Table 36. Current Service Level Expenditures per Person Served ................................................................. 24 Table 37. Current Service Level Expenditures Generated by Future Development ...................................... 25 Table 38. Annual Cost of Additional Police Personnel for Target Service Level ............................................. 25 Attachment "1"
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Table 39. Target Police Service Level Expenditures Attributable to Future Development ............................ 26 Table 40. Annual Cost of Additional Fire Personnel for Target Service Level ................................................ 26 Table 41. Target Police Service Level Expenditures Attributable to Future Development ............................ 27 Table 42. Expenditures Summary ................................................................................................................... 28 Table 43. Expenditures Summary by Future Development Type ................................................................... 28 Table 44. Annual Fiscal Impact ....................................................................................................................... 29 Table 45. Fiscal Impact by Development Type ............................................................................................... 29 Table 46. Negative Fiscal Impact CFD Special Tax Rates ................................................................................ 32 Attachment "1"
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City of Escondido
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SECTION 1 | INTRODUCTION
The City of Escondido (“City”) is undertaking a comprehensive review of the net fiscal impact to its General Fund (“General Fund”) in anticipation of projected future development within the City. A review of the revenues expected to be generated by projected development, as compared with expenditures the City will incur to provide certain public services, determined that projected Townhome, Apartment/Condo and Affordable Housing developments within the City will have a negative fiscal impact on the City’s General Fund, whereas Single-Family, Small Lot Single-Family, Commercial and Industrial developments will have a positive fiscal impact. To offset negative fiscal impacts created by projected development, the City should consider establishing a new funding source through a special financing district.

This fiscal impact analysis will provide background information, applicable financial information, and recommended actions for the City’s consideration. To accomplish these objectives, this report includes the following information:
 Background Information. T h
e introductory portion of the report focuses on the City and public services/operations under review. Existing development information is also addressed in this section.  Revenues. The revenue section of the report identifies the various revenue sources and the potential re
curring revenues, given certain reasonable assumptions.  Expenditures. Th e expenditure section of the report identifies the estimated recurring cost burden placed upon the City’s operations.
 Fiscal Impact. Us ing projected development’s identified revenues and expenditures, this section of the report identifies the overall fiscal impact on the City’s operations. Fiscal impacts are addressed on a land use category basis using either a per dwelling unit, building square foot, lot square foot, or acre factor.
 Recommendations. T h
e report concludes with a summary of fiscal analysis findings and recommendations for the City’s consideration.

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SECTION 2 | BACKGROUND
As part of the overall decision-making process to move forward with proposed development, it is important to evaluate the contributions and demands that future development will place upon a public agency’s operating funds. This analysis seeks to determine the fiscal impact of future development throughout the City and the accompanying impact placed upon the City’s General Fund. The General Fund is used to account for all the general revenues of the City not specifically levied or collected for other City funds or related expenditures. The General Fund accounts for all financial resources of a governmental unit not accounted for in another fund. To determine the anticipated fiscal impacts placed upon the City, this fiscal impact analysis is designed to quantify the approximate cost of providing services to the City’s projected future population.

Analysis Methodology
The revenue portion of the fiscal impact analysis focuses on various taxes, fees, and other City revenues colle
cted to fund ongoing operational costs. The expenditure portion of the fiscal impact analysis focuses on recurring expenditures incurred by the City to provide ongoing services to its population.

This analysis utilizes data from various sources including, but not limited to, the California Department of Finance, the San Joaquin Council of Governments, the General Plan, and financials of the City. Data sources are detailed where applicable in this report. Current-day dollar values are used in this analysis due to the inability to project with accuracy revenues and expenditures at the time of buildout. The rounding of decimals may cause marginal variances between calculated and listed figures that appear in this report.

There are several industry-accepted methods for allocating a public agency’s recurring revenues and exp
enditures to future development. This fiscal analysis primarily employs two industry-standard approaches:
the case study approach and the multiplier approach. Both approaches are described below.

CASE STUDY APPROACH
When data used in a fiscal impact analysis is specific to the analysis itself and is not dependent on industry- acce
pted generalized multipliers such as the number of residents, employees, etc., the case study approach is utilized. The case study approach relies on development-specific data to estimate the fiscal impacts of projected future development. Data used in the case study approach may include anything applicable to the future projections, including assessed valuations, property turnover rates, residential and employee populations, household incomes, estimated sales, and taxable expenditures.

MULTIPLIER APPROACH
The multiplier approach is used in a fiscal impact analysis when relationships between projected future dev
elopment and revenues or expenditures generated from projected future development are difficult to quantify. This approach anticipates that certain revenues and expenditures are indicators of future anticipated revenues and expenditures, which can be quantified based on changes in, for example, the number of persons served by a public agency. To apply the multiplier approach, this report determines an average revenue or expenditure amount based upon a per person served basis. Depending on the type of revenue or expenditure, persons served can include residents, employees, or a combination of both.

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Current City Persons Served
To best apply the multiplier approach in this fiscal impact analysis, and to allocate applicable revenues and exp
enditures, population information is utilized.

RESIDENTIAL POPULATION
Current residential population data was obtained from the California Department of Finance (“CA DOF”). Per the
California Department of Finance, as of 2023, the residential population of the City was 149,799.

EMPLOYEE POPULATION
Current employee population data was estimated using data from the San Diego Association of Gov
ernments’ (“SANDAG”) Series 14 Regional Growth Forecast Documentation and Subregional Allocation.

This report refers to the Regional Growth Forecast as the SANDAG Report.

Per the SANDAG Report, in 2016 the employee population of the City (i.e., number of jobs within the City) was 57,670 and was expected to grow annually by approximately 1.07% through the year 2050. Using the 2016 employee population and projected annual growth rate, this analysis estimates that as of 2023 the employee population of the City was 62,129.

PERSONS SERVED
Using residential and employee population estimates, the total number of persons served within the City can
be determined. When establishing the total number of persons served within the City, this analysis recognizes that an employee population does not have the same impact on demand for public services as a residential population. This is especially true for the portion of the employee population which works within the City but resides outside of its boundaries. While the exact service-demand relationship between an employee and a resident is difficult to quantify with accuracy, an industry-standard correlation of one-half employee to one resident is commonly used. This 50% adjustment suggests that a resident will have twice the impact on a public agency’s revenues and demand for services as that of an employee within the City.

The 50% adjustment also seeks to account for employees included within the identified employee population count that are also residents of the City. Applying the 50% adjustment to the City’s existing employee population base, the total number of persons served within the City is calculated in the following table.

TABLE 1. CURRENT PERSONS SERVED
Description Total
Current Residential Population (1) 149 ,799
Current Employee Population (2) 62, 129
Adjusted Employee Population (3) 31, 065
Current Persons Served (4) 180,864
(1) Per CA DOF.
(2) 2016 Employee Population per the SANDAG Report adjusted to 2023. (3) Current Employee Population adjusted by 50%, rounded to the nearest whole number.
(4) Equal to (Current Residential Population) + (Adjusted Employee Population).

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Future City Persons Served

FUTURE RESIDENTIAL POPULATION
Per the SANDAG Report, the City’s residential population is projected to grow to 167,211 by the year 2050.

FUTURE EMPLOYEE POPULATION
The SANDAG Report projects that the City’s employee population will grow to 82,806 by the year 2050.

FUTURE PERSONS SERVED
Using projected future residential and employee population estimates, the total number of future persons ser
ved within the City can be determined. Applying the 50% adjustment (described earlier in this report) to the City’s projected future employee population, the total number of future persons served within the City is provided in the following table.

TABLE 2. FUTURE PERSONS SERVED
Description Total
Future Residential Population (1) 167 ,211
Future Employee Population (1) 82, 806
Adjusted Future Employee Population (2) 41, 403
Future Persons Served (3) 208,614
(1) In 2050, Per the SANDAG Report.
(2) Future Employee Population adjusted by 50%, rounded to the nearest whole number.
(3) Equal to (Future Residential Population) + (Adjusted Future Employee Population).

CHANGE IN PERSONS SERVED
A summary of the change in persons served as a result of projected future development within the City is pre
sented in the following table.

TABLE 3. CHANGE IN PERSONS SERVED
Description Total
Change in Residential Population 17,412
Change in Employee Population (1) 20, 677
Change in Persons Served 27,750
(1) Reflects change in employee population prior to application of 50% adjustment.

Figure used to estimate future non-residential development & certain revenues.

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SECTION 3 | REVENUE ESTIMATE
The City relies on revenue received from several sources. A majority of the City’s operating revenue derives from property taxes, sales taxes, property taxes in lieu of vehicle license fees, property transfer taxes (i.e., documentary transfer taxes), and various other taxes and fees. The case study approach is used to determine the estimated property tax revenue generated from projected future development within the City, and the multiplier approach is used to allocate certain types of other revenue the City receives.

Property Tax Revenue
Under California law, non-exempt property pays an ad
valorem property tax equal to 1% of the assessed value
of the property. Any additional voter-approved taxes or assessments will result in a total property tax rate burden that can exceed 1% of the property’s assessed value. The property tax revenue received from the 1% ad valorem property tax rate is then allocated to various overlapping public agencies based upon their authorized allocation for each Tax Rate Area (“TRA”). Across the City’s various TRAs, of the 1% ad valorem property tax collected from property within its boundaries, the City receives approximately 10.30%.

There is also one former redevelopment project area (“RDA Zone”) managed by the City Successor Agency (“Successor Agency”). The 1% ad valorem incremental property tax generated within this former project area is allocated each January 2 and June 1 per redevelopment dissolution statutes. The 1% ad valorem tax increment revenue is allocated on these dates by first deducting County administrative costs and then by the payment of pass-through obligations. The tax increment revenue remaining is available for payment of the former redevelopment agency’s obligations and the administrative costs of the Successor Agency. Tax increment revenue remaining after payment of all obligations is referred to as Residual Revenue (“Residual Revenue”). The Residual Revenue is allocated to relevant taxing entities based on their proportional shares of the total tax increment revenue. Residual Revenue was 51.56% of the total 1% ad valorem tax increment revenue in Fiscal Year 2022/23. The City’s share of the Residual Revenue allocated in Fiscal Year 2022/23 was approximately 10.64% of the total residual amount, which equates to approximately 5.50% of the 1% ad valorem property tax revenue; it is therefore assumed that within RDA Zones, the City receives approximately

5.50% of the 1% ad valorem property tax revenue. The recognized obligations of the Successor Agency will terminate on December 31, 2035, after which time properties within the RDA Zone will contribute the same property tax percentage as the properties not in the RDA Zone (10.30%).

RESIDENTIAL DEVELOPMENT
To calculate the amount of property tax revenue projected to be generated for the City by future residential dev
elopment, the projected increase in households is considered. Per the CA DOF, as of 2023, there were 50,655 housing units in the City, with approximately 57% of the total consisting of single-family residential units and 43% of the total consisting of multi-family residential units. Per the SANDAG Report, the number of housing units within the City is projected to grow to 58,201 by 2050.

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TABLE 4. GROWTH IN HOUSEHOLDS
Description Total
Housing Units in 2023 (1) 50, 655
Households in Future (2) 58, 201
Growth in Households (3) 7,546
(1) Per CA DOF.
(2) In 2050, per the SANDAG Report.
(3) Equal to (Housing Units in Future) - (Housing Units in 2023).

In March of 2021, the City published its 6th Cycle Housing Element for the years 2021-2029 (“Housing Elem
ent”). Housing Element is concerned with specifically identifying ways in which the housing needs of existing and future resident residents can be met. The Housing Element contains a Regional Housing Needs Assessment (“RHNA”) that details numerous sites within the City with additional capacity for low-income, moderate-income, and above moderate-income capacity (“RHNA Sites”). These allocations are detailed in the following table.

TABLE 5. ALLOCATION OF FUTURE HOUSING TO VARIOUS HOUSEHOLD INCOME CATEGORIES Income Category
Number of Units Allocated to Income
Category (1)
Above Moderate-Income Capacity 3,417
Moderate-Income Capacity 1,462
Low-Income Capacity 4,524
Total Capacity 9,403
(1) Per the RHNA in the City’s Housing Element.

This analysis assumes that housing constructed through 2050 will follow similar guidelines as those detailed in t
he RHNA and the City’s most recent Housing Element. This report also recognizes that low-income units (Affordable Housing) will be exempt from certain taxes examined further in Section 3 of this report.

For purposes of this report, the capacities shown in Table 5 have been reduced by 19.75%, as we’ve established above that the growth in households by the year 2050 will only be 7,546 housing units ([9,403 – 7,546] / 9,403 = 19.75%).

The following table shows the adjusted allocations:

TABLE 6. ADJUSTED ALLOCATION OF FUTURE HOUSING TO VARIOUS HOUSEHOLD INCOME

CATEGORIES
Income Category
Number of Units Allocated to Income
Category (1)
Above Moderate-Income Adjusted Capacity 2,742
Moderate-Income Adjusted Capacity 1,173
Low-Income Adjusted Capacity 3,631
Total Adjusted Capacity 7,546

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Data from the Housing Element indicates that approximately 55% of lower-income households are either very low-income or extremely low-income. This percentage has been applied to the Low-Income Adjusted Capacity income category to carve out the estimated number of Affordable Housing Units. Using the projected change in dwelling units from 2023 to 2050 calculated in Table 4, the allocations detailed in Table 6, as well as the maximum density allowable for each of the RHNA Sites based on data provided by the City (REVISED_Escondido_SSI_pendingProjectsUpdated.xlsx), the number of future residential units projected to develop within the City is calculated in the following table.

TABLE 7. FUTURE RESIDENTIAL DEVELOPMENT WITHIN CITY
Development
Type Density Category
Total
Unit
Count
Single-Family Less than 5.5 DU/Acre 635
Small Lot Single-Family 5.5 to less than 18 DU/Acre 270 Townhomes 18.0 to less than 30 DU/Acre 455
Apartments/Condos 30 DU/Acre or Greater 4,197
Affordable Housing (Low Income) 18.0 to less than 30 DU/Acre or 30 DU/Acre or Greater 1,989 Totals 7,546

Property is subject to the 1% ad valorem tax rate unless it can qualify for an exemption under existing California laws. Certain types of property that are granted this property tax exemption, also known as the Welfare Exemption (“Welfare Exemption”), include hospitals, universities, churches, affordable housing, and other non-profits. If the Welfare Exemption is granted, the property will not be subject to the 1% ad valorem property tax. However, the property may still be subject to other assessments, taxes, and charges levied by local governments. Future Single-Family, Small Lot Single-Family, Townhome, and Apartment/Condo developments will be subject to the 1% ad valorem property tax rate, whereas future Affordable Housing development will qualify for the Welfare Exemption and will not be subject to the 1% ad valorem property tax.

To calculate the amount of property tax revenue projected to be generated for the City by residential development, the estimated sales price of each property type as of September 2023 is considered.

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TABLE 8. TOTAL FUTURE ASSESSED VALUE OF RESIDENTIAL DEVELOPMENT – RDA ZONE Description Single-Family
Small Lot
Single-Family Townhomes
Apartments /
Condos Total
Estimated
Price per
Unit (1)
$87
0,000 $783,000 $600,500 $425,750 N/A
Unit
Count (2) 6 43 390 3,946 4,383
Total
Future
Assessed
Value (3)
$4,887,285 $33,303,356 $234,085,824 $1,679,808,941 $1,952,085,405 (1) Sales price data drawn from Redfin.com. Median sales price for single-family homes, townhouses, and condos/co- ops. Figures reflect market conditions as of September 2023 and are subject to fluctuation. (2) Number of units on the RHNA sites identified in Table 7 within the RDA Zone. (3) Equal to (Assessable Value per Unit) x (Unit Count).

TABLE 9. TOT AL FUTURE ASSESSED VALUE OF RESIDENTIAL DEVELOPMENT – NON- RDA ZONE Description Single-Family
Small Lot
Single-Family Townhomes
Apartments /
Condos Total
Estimated
Price per
Unit (1)
$87
0,000 $783,000 $600,500 $425,750 N/A
Unit
Count (2) 629 228 65 251 1,173
Total
Future
Assessed
Value (3)
$547,375,910 $178,455,718 $38,849,566 $106,996,497 $871,677,690 (1) Sales price data drawn from Redfin.com. Median sales price for single-family homes, townhouses, and condos/co- ops. Figures reflect market conditions as of September 2023 and are subject to fluctuation. (2) Number of units on the RHNA sites identified in Table 7 not within the RDA Zone. (3) Equal to (Assessable Value per Unit) x (Unit Count).

TABLE 10. CURR ENT ASSESSED VALUE OF FUTURE RESIDENTIAL DEVELOPMENT (RHNA SITES) – RDA ZONE
Description Single-Family
Small Lot
Single-Family Townhomes
Apartments /
Condos Total
Current
Assessed
Value (1)
$1,
369,958 $5,870,180 $49,961,125 $281,243,494 $338,444,757 (1) Per San Diego County Assessor’s data, as of January 2023.

TABLE 11. CURR ENT ASSESSED VALUE OF FUTURE RESIDENTIAL DEVELOPMENT (RHNA SITES) – NON-

RDA ZONE
Description Single-Family
Small Lot
Single-Family Townhomes
Apartments /
Condos Total
Current
Assessed
Value (1)
$49
,116,907 $25,228,584 $8,785,638 $16,035,360 $99,166,489 (1) Per San Diego County Assessor’s data, as of January 2023.

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TABLE 12. INCREMENTAL ASSESSED VALUE OF FUTURE RESIDENTIAL DEVELOPMENT – RDA ZONE Description Single-Family
Small Lot
Single-Family Townhomes
Apartments /
Condos Total
Total Future
Development
Assessed
Value (1)
$4,
887,285 $33,303,356 $234,085,824 $1,679,808,941 $1,952,085,405 Current
Assessed
Value (2)
1,36
9,958 5,870,180 49,961,125 281,243,494 338,444,757
Incremental
Assessed
Value (3)
$3,517,327 $27,433,176 $184,124,699 $1,398,565,447 $1,613,640,648 (1) Calculated in Table 8.
(2) Calculated in Table 10.
(3) Equal to (Total Future Development Assessed Value) - (Current Assessed Value).

TABLE 13. INC REMENTAL ASSESSED VALUE OF FUTURE RESIDENTIAL DEVELOPMENT – NON-RDA ZONE
Description Single-Family
Small Lot
Single-Family Townhomes
Apartments /
Condos Total
Total Future
Development
Assessed
Value (1)
$54
7,375,910 $178,455,718 $38,849,566 $106,996,497 $871,677,690 Current
Assessed
Value (2)
49,
116,907 25,228,584 8,785,638 16,035,360 99,166,489
Incremental
Assessed
Value (3)
$498,259,003 $153,227,134 $30,063,928 $90,961,137 $772,511,201 (1) Calculated in Table 9.
(2) Calculated in Table 11.
(3) Equal to (Total Future Development Assessed Value) - (Current Assessed Value).

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TABLE 14. PROPERTY TAX REVENUE GENERATED BY FUTURE RESIDENTIAL DEVELOPMENT – RDA ZONE
Description Single-Family
Small Lot
Single-Family Townhomes
Apartments /
Condos Total
Incremental
Assessed
Value (1)
$3,
517,327 $27,433,176 $184,124,699 $1,398,565,447 $1,613,640,648 1% Ad
Valorem $35,173 $274,332 $1,841,247 $13,985,654 $16,136,406 Allocation of
1% Ad
Valorem

5.50% 5.50% 5.50% 5.50% 5.50%
Projected
Property Tax
Revenue to
City
$1,933 $15,077 $101,193 $768,634 $886,837
(1) Calculated in Table 12.

TABLE 15. PRO PERTY TAX REVENUE GENERATED BY FUTURE RESIDENTIAL DEVELOPMENT – NON-

RDA ZONE
Description Single-Family
Small Lot
Single-Family Townhomes
Apartments /
Condos Total
Incremental
Assessed
Value (1)
$49
8,259,003 $153,227,134 $30,063,928 $90,961,137 $772,511,201 1% Ad
Valorem $4,982,590 $1,532,271 $300,639 $909,611 $7,725,112 Allocation of
1% Ad
Valorem

10.30% 10.30% 10.30% 10.30% 10.30%
Projected
Property Tax
Revenue to
City
$513,207 $157,824 $30,966 $93,690 $795,687
(1) Calculated in Table 13.

NON-RESIDENTIAL DEVELOPMENT
To calculate the amount of property tax revenue projected to be generated for the City by future Commercial and
Industrial development, estimated current employee allocations to each property type and the projected increase in the employee population are considered.

Between 2023 and 2050, the employee population of the City is projected to grow by 20,677 employees. Per City Data, approximately 85.4% of current employees are employed in Commercial businesses, while 14.6% or current employees are employed in Industrial businesses. For purposes of this analysis, the projected increase in the employee population within the City is attributed to Commercial and Industrial development according to these existing proportions, as shown in the following table.

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TABLE 16. FUTURE DEVELOPMENT EMPLOYEE POPULATION
Description Value
Projected Change in Commercial Employee Population (1) 17, 662 Projected Change in Industrial Employee Population (2) 3,01 5 Projected Change in Employee Population (3) 20,677
(1) Equal to 85.4% of Projected Change in Employee Population. Estimated, subject to change. (2) Equal to 14.6% of Projected Change in Employee Population. Estimated, subject to change. (3) Identified in Table 3.

Average employee density figures specific to the City or the County could not be obtained. As such, for pur
poses of this analysis, estimated employee density figures for the City were calculated by averaging non- residential density figures presented in the UC Davis Building Area per Employee by Business Type assumptions (“UC Davis Assumptions”). The estimated building square feet per employee of non-residential development are presented in the following table and multiplied by the projected change in Commercial or Industrial employee population to arrive at the amount of non-residential building square feet projected to develop.

TABLE 17. ESTIMATED NON-RESIDENTIAL BUILDING SQUARE FEET TO DEVELOP Description Value
Commercial Bldg. Sq. Ft. per Employee (1) 331
Industrial Bldg. Sq. Ft. per Employee (1) 543
Commercial Bldg. Sq. Ft. Projected to Develop (2) 5,846,122 Industrial Bldg. Sq. Ft. Projected to Develop (2) 1,635,638 (1) Average of employee density figures within the UC Davis Assumptions. (2) Equal to (Projected Change in corresponding Employee Population identified in Table 16) x (Corresponding Bldg.

Sq. Ft. per Employee).

Undeveloped land zoned for non-residential use currently generates a level of property tax revenue for the City
. For purposes of assigning current assessed value to property that will contain projected future Commercial and Industrial development, Floor Area Ratios (“FAR”), or the maximum ratio of building to lot square footage, are considered. On average, the FAR of existing non-residential uses that contain Commercial development is 0.40. The FAR of existing non-residential uses that contain Industrial development 0.37. This analysis assumes that on average, future Commercial development will have a FAR of 0.40 and Industrial development will have a FAR of 0.37. The current assessed value of property projected to develop to accommodate future non-residential development is calculated in the following table using FARs, amount of building square feet projected to develop, and County Secured Roll Data.

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TABLE 18. CURRENT ASSESSED VALUE OF FUTURE NON-RESIDENTIAL DEVELOPMENT Description Commercial Industrial Total
Building Square Feet
Projected to Develop (1) 5,84 6,122 1,635,638 7,481,760 FAR (2) 0.4 0 0.37 N/A
Lot Square Feet Projected to
Develop (3) 14, 615,305 4,420,643 19,035,948
Acreage Projected to Develop (4) 335 .52 101.48 437.01
Undeveloped Non-residential
Acreage (5) 896 .84 106.25 1,003.09
Undeveloped Non-residential
Assessed Value (5) $10 4,436,207 $45,390,881 $149,827,088 % of Total
Undeveloped Acreage (6) 37. 41% 95.52% N/A
Current Assessed Value (7) $39,071,184 $43,356,441 $82,427,624 (1) Identified in Table 17.
(2) Average FAR for existing commercial or industrial properties within the City. (3) Equal to (Building Square Feet Projected to Develop) / (FAR). (4) Lot Square Feet Projected to Develop converted to acres. (5) Per County Secured Roll Data, total acreage and assessed value of undeveloped property zoned for non-residential uses.
(6) Equal to (Acreage Projected to Develop) / (Undeveloped Non-residential Acreage). (7) Equal to (% of Total Undeveloped Acreage) x (Undeveloped Non-residential Assessed Value).

To calculate the total assessed value of projected future Commercial and Industrial development, the averag
e sales price per building square foot of each property type was calculated. An average price per building square foot was calculated for Commercial and Industrial property using sales price data of property within the City within the last six months.

TABLE 19. COMMERCIAL AND INDUSTRIAL PRICE PER BUILDING SQUARE FOOT Description Commercial (1) Industrial (1)
Average Price per Bldg. Sq. Ft. $359 $236
(1) Listing price data drawn from the online commercial real estate marketplace CoStar.com. Listing price data of Commercial and Industrial property for sale within the City. Figures reflect market conditions as of April 2023 and are subject to fluctuation.

The total assessed value and the incremental assessed value of projected Commercial and Industrial dev
elopment are calculated in the following table.

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TABLE 20. INCREMENTAL ASSESSED VALUE OF FUTURE NON-RESIDENTIAL DEVELOPMENT Description Commercial Industrial Total
Total Assessed Value (1) $2, 098,757,798 $386,010,568 $2,484,768,366 Current Assessed Value (2) 39, 071,184 43,356,441 82,427,624 Incremental Assessed Value (3) $2,059,686,614 $342,654,127 $2,402,340,742 (1) Equal to (Building Square Footage Projected to Develop identified in Table 17) x (Average Price per Bldg. Sq. Ft. identified in Table 19).
(2) Identified in Table 18.
(3) Equal to (Total Assessed Value) – (Current Assessed Value).

As with future residential development, the amount of property tax revenue expected to be generated by pro
jected non-residential development is dependent on whether property on which it will develop is within the RDA Zone. Per County Secured Roll Data, of the total amount of undeveloped land zoned for non- residential use, approximately 11% is within the existing RDA Zone. For purposes of this analysis, it is assumed that 11% of projected non-residential development will occur within the RDA Zone. Given this assumption, the amount of property tax revenue projected non-residential development is expected to generate for the City is calculated in the following table.

TABLE 21. PROPERTY TAX REVENUE GENERATED BY FUTURE NON-RESIDENTIAL DEVELOPMENT Description Commercial Industrial Total
Incremental Assessed Value (1) $2,059,686,614 $342,654,127 $2,402,340,742 1% Ad Valorem – RDA Zones (2) $2, 265,655 $376,920 $2,642,575 1% Ad Valorem – Non-RDA Zones (3) $18,331,211 $3,049,622 $21,380,833 Allocation of 1% Ad Valorem -
RDA Zone (4) 5.5 0% 5.50% 5.50%
Allocation of 1% Ad Valorem -
Non-RDA Zone (4) 10. 30% 10.30% 10.30%
Property Tax Revenue Generated
for City (5) $2,012,632 $334,826 $2,347,458
(1) Calculated in Table 20.
(2) Equal to (Incremental Assessed Value) x (1.00%) x (11%, the percent of future residential development expected to occur within the existing RDA Zone). 11% is estimated and subject to change. (3) Equal to (Incremental Assessed Value) x (1.00%) x (89%, the percent of future residential development expected to occur outside of the existing RDA Zone). 89% is estimated and subject to change. (4) Estimate.
(5) Equal to [(1% Ad Valorem – RDA Zones) x (Allocation of 1% Ad Valorem – RDA Zones)] + [(1% Ad Valorem – Non- RDA Zones) x (Allocation of 1% Ad Valorem – Non-RDA Zones)].

Property Tax in Lieu of Vehicle License Fee (“VLF”) Revenue Property tax in lieu of VLF is revenue the City receives in addition to the City’s share of ad valorem property tax revenues. In 2004, the California Legislature permanently reduced the VLF rate from 2.00% to 0.65% and compensated cities and counties for their revenue loss with a like amount of property taxes, dollar for dollar.

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A public agency’s property tax in lieu of VLF revenue allocation changes in proportion to the growth or decline in gross assessed valuation.

Per assessed value data provided by the CA BOE, and the Fiscal Year 2022/23 Property Tax in Lieu of VLF revenue received by the City, the ratio of property tax in lieu of VLF received by the City to the City’s assessed value is calculated, as shown in the following table.

TABLE 22. PROPERTY TAX IN LIEU OF VLF RATIO
Description
Fiscal Year
2022/23 Value
City Total Assessed Value (1) $19 ,452,099,000
VLF Revenue (2) 16, 140,100
Property Tax in Lieu of VLF Ratio (3) 0.0830%
(1) Per the CA BOE.
(2) Per City’s 2022/23 Operating Budget.
(3) Equal to (VLF Revenue) / (City Total Assessed Value).

The property tax in lieu of VLF ratio is applied to the incremental assessed value of projected future dev
elopment within the City to estimate the amount of property tax in lieu of VLF to be generated by said development.

TABLE 23. PROPERTY TAX IN LIEU OF VLF REVENUE
Description
Incremental
Assessed Value (1)
Property Tax in Lieu
of VLF Ratio
Property Tax in Lieu
of VLF Revenue (2)
Single-Family $501,776,330 0.0830% $416,474
Small Lot Single-Family 180,660,309 0.0830% 149,948
Townhomes 214,188,627 0.0830% 177,777
Apartments/Condos 1,489,526,584 0.0830% 1,236,307
Affordable Housing (Low Income) - 0.0830% -
Commercial 2,059,686,614 0.0830% 1,709,540
Industrial 342,654,127 0.0830% 284,403
Totals $4,788,492,591 $3,974,449
(1) Identified in Tables 12, 13 and 20.
(2) Equal to (Incremental Assessed Value) x (Property Tax in Lieu of VLF Ratio). (3) Affordable Housing is expected to qualify for the Welfare Exemption and thus not expected to generate property tax in lieu of VLF revenue.

Documentary Transfer Tax
When property is sold, a documentary transfer tax is charged and distributed to the City and County. The doc
umentary transfer tax is charged at a rate of $0.55 per $500 of assessed value, or $1.10 per $1,000 of assessed value. To determine the annual documentary transfer tax revenue, estimated property turnover rates are considered. This analysis assumes that residential units will turnover approximately every 13 years, which results in an annual turnover rate of about 8%. Commercial and Industrial land uses typically have minimal ownership turnover. However, to consider the potential for land use turnover, a conservative Attachment "1"
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estimate of once every 20 years, or an annual turnover rate of 5%, is applied in this analysis to the projected non-residential development. Utilizing the estimated incremental assessed value of projected future development and estimated annual turnover rates, the City’s share of the documentary transfer tax is calculated in the following table.

TABLE 24. DOCUMENTARY TRANSFER TAX GENERATED BY FUTURE DEVELOPMENT Description Single-Family Small Lot
Single-Family Townhomes Apartments /
Condos Commercial Industrial
Incremental
Assessed
Value
$501,776,330 $180,660,309 $214,188,627 $1,489,526,584 $2,059,686,614 $342,654,127 Estimated
Annual
Turnover
Rate (1)
8% 8
% 8% 8% 5% 5%
Annual
Turnover
Assessed Value
(2)
$40
,142,106 $14,452,825 $17,135,090 $119,162,127 $102,984,331 $17,132,706 Annual
Turnover
Assessed Value
/ $1,000
$40,142 $14,453 $17,135 $119,162 $102,984 $17,133
Documentary
Transfer Tax
Rate per $1,000
(3)
$0.
55 $0.55 $0.55 $0.55 $0.55 $0.55
Documentary
Transfer Tax
Revenue
$22,078 $7,949 $9,424 $65,539 $56,641 $9,423
(1) Source for residential rates: “Latest Calculations Show Average Buyer Expected to Stay in Home 13 Years,” Economic and Housing Policy, National Association of Homebuilders. (2) Equal to (Incremental Assessed Value) x (Estimated Annual Turnover Rate). (3) $1.10 tax rate is split $0.55 to the County and $0.55 to the City.

Sales Tax Revenue
A sales tax is a tax levied on the sale, transfer, or exchange of a taxable item or service. The base sales tax rate
in California is 7.25%. Revenue generated from the sales tax is allocated to certain state and local jurisdictions, with the City receiving 1.00% of the base sales tax rate.

In addition to the base sales tax, the County levies and collects an additional 0.50% sales tax. In total, the sales rate in the City is 7.75%. The rate used to project sales and transactions and use tax revenue for the City referred to collectively as sales tax revenue in this report, is 1.00%.

FUTURE RESIDENTS
To determine the amount of sales tax revenue expected to be generated by the residential population that will r
esult from projected residential development, the median income per household within the City, the Attachment "1"
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median home price to median household income ratio, and the percentage of income spent on taxable retail sales per household are considered.

In 2021, the Joint Center for Housing Studies of Harvard University authored the State of the Nation’s Housing report (“Harvard Study”). Per the Harvard Study, in 2020 within the San Diego-Carlsbad metropolitan area, the median home price to median income ratio was 8.54. Together with the projected median sales price of projected various residential developments, this ratio is used to estimate the income of households within future residential developments. This analysis assumes that, on average, households within projected Affordable Housing development will have incomes equal to 60% of Apartment/Condo households. The projected income of households within projected the various residential developments are detailed in the following table.

TABLE 25. RESIDENTIAL HOUSEHOLD INCOMES
Description
Median
Price per Unit (1)
Median Home Price
to Median Income
Ratio (2)
Household
Income (3)
Single-Family $870,000 8.54 $101,874
Small Lot Single-Family 783,000 8.54 91,686
Townhomes 600,500 8.54 70,316
Apartments/Condos 425,750 8.54 49,854
Affordable Housing (Low Income) N/A N/A 29,912
(1) Identified in Table 8.
(2) For taxable residential property, San Diego-Carlsbad metropolitan area median home price to median income ratio. Affordable Housing incomes are considered separately. (3) Taxable residential property household income equal to (Median Price per Unit) / (Median Home Price to Median Income Ratio). Affordable Housing household income equals 60% of Apartment/Condo household income.

Per the CA BOE, approximately 29.5% of a household’s spending is spent on taxable retail goods. This per
centage is discounted by 35% to attempt to account for purchases made outside of City boundaries and shifts in taxable sales from one point of sale to another within the City. The estimated sales tax revenue generated by projected future households is calculated in the following table.

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TABLE 26. SALES TAX REVENUE GENERATED BY INCREASE IN RESIDENTIAL POPULATION Description
Single-Family
Small Lot
Single-
Family
Townhomes Apartments
/ Condos
Affordable
Housing
(Low
Income)
Median Household Income
(1) $10 1,874 $91,686 $70,316 $49,854 $29,912
Percentage of Income
Spent on Taxable Retail
Sales per Household (2)

19. 18% 19.18% 19.18% 19.18% 19.18%
Income Spent on Taxable
Retail Sales Within City per
Household (3)
$19
,534 $17,581 $13,483 $9,559 $5,736
Number of Households 635 270 455 4,197 1,989
Sales Tax Revenue –
Residential Population (4) $124,001 $47,547 $61,283 $401,194 $114,106 (1) Identified in Table 25.
(2) 29.5%, per BOE.gov household spending for California taxable retail goods, discounted by 35% to account for shifts in taxable sales and purchases made outside of the City boundaries. Estimate; subject to change. (3) Equal to (Median Household Income) x (Percentage of Income Spent on Taxable Retail Sales per Household). (4) Equal to (Income Spent on Taxable Retail Sales Within City per Household) x (Number of Households) x (1.00%).

FUTURE EMPLOYEES
In addition to the increased residential population, the increase in employees resulting from projected non- res
idential development will generate a certain amount of sales tax revenue for the City. The International Council of Shopping Centers conducted a survey that determined the approximate dollar amount an average employee spends per year on taxable goods and services. After adjusting this amount to the year 2022 using the change in Consumer Price Index (“CPI”) of the San Diego-Carlsbad region, it’s estimated that an average employee within the City will spend approximately $6,625 per year on taxable goods and services. While personal spending is unique to each individual, this analysis assumes that approximately 60% of the employee’s annual spending will be on taxable purchases that will occur near their place of employment within the City’s boundaries. Using this information, the estimated sales tax revenue generated from future employees is calculated in the following table.

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TABLE 27. SALES TAX REVENUE GENERATED BY INCREASE IN EMPLOYEE POPULATION Description Commercial Industrial
Average Annual Taxable Spending per Employee (1) $6, 625 $6,625 Additional Employee Count (2) 17, 662 3,015
Estimated % of Taxable Sales within City (3) 60% 60%
Employee Taxable Sales within City $70,206,450 $11,984,625 Sales Tax Revenue – Employee Population (4) $702,065 $119,846 (1) Drawn from a survey conducted by The International Council of Shopping Centers, adjusted to the year 2022 using the change in CPI of the San Diego-Carlsbad region.
(2) Identified in Table 16.
(3) 40% reduction seeks to account for taxable sales made outside of the City boundary. (4) Equal to (Average Annual Spending per Employee) x (Additional Employee Count) x (Estimated % of Taxable Sales within City) x (1.00%).

NON-RESIDENTIAL SALES TAX REVENUE
Sales tax revenue will be generated from taxable sales that occur within future non-residential development.

Eco
nomic activity within future Industrial development may generate sales tax revenue; though due to an inability to accurately determine the types of businesses that will reside within future Industrial development, this analysis takes a conservative approach and does not attempt to estimate the amount of sales tax revenue that may be generated by Industrial property.

To best estimate the increase in sales tax revenue that will be generated by future Commercial property, this analysis considers the estimated taxable sales per square foot for commercial property calculated within a retail benchmarking report authored by PwC in 2013. 1 After adjusting the PwC estimate to the year 2022 usin
g the change in CPI for the San Diego-Carlsbad region, it’s estimated that future commercial property will generate approximately $517 per building square foot.

This analysis recognizes that some taxable sales generated from future Commercial development will not be new taxable sales for the City. A portion of these taxable sales will come from shifts from one existing place of business within the City to a place of business located within the projected Commercial development area.

Furthermore, a portion of the sales tax revenue generated by projected Commercial development will derive from purchases made by the projected increase in the residential and employee population, purchases which are quantified separately in this analysis. Therefore, to account for shifts in taxable sales from one point of sale to another point of sale within the City and separately calculated sales tax revenue from the increased residential and employee population, an estimated 50% reduction has been applied. Applying the estimated taxable sales per square foot and the sales tax revenue reduction percentage, the estimated sales tax revenue from projected commercial development can be determined.

1 Measuring Up Retail Benchmarking Survey, PwC Consulting, 2013.

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TABLE 28. SALES TAX REVENUE GENERATED BY FUTURE COMMERCIAL DEVELOPMENT Description Amount
Estimated Taxable Sales per Bldg. Sq. Ft. (1) $51 7
Commercial Bldg. Sq. Ft. Projected to Develop (2) 5,84 6,122 Taxable Sales (3) $3, 022,445,074
Sales Tax Revenue – Commercial Development (4) $15,112,225 (1) Figure drawn from the Measuring Up Retail Benchmarking Survey prepared by PwC, adjusted to the year 2022 using the change in CPI for the San Diego-Carlsbad. Figure from PwC report is derived from the median sales per square foot estimates for various retail categories.
(2) Identified in Table 17.
(3) Equal to (Estimated Taxable Sales per Bldg. Sq. Ft.) x (Commercial Bldg. Sq. Ft. Projected to Develop). (4) Equal to (Taxable Sales) x (City sales tax rate of 1.00%) x (50% reduction factor). Reduction factor estimated and subject to change.

Other City Revenue
The City receives revenue from various other sources including fees, fines, penalties, charges for services, and oth
er revenues (“Other City Revenues”). For purposes of this analysis, revenues that are not considered include one-time building and planning permits, charges for services, interest from City investments, use of money and property, special project funds, and grants. The following table presents the City’s Other Revenues derived from the City’s Fiscal Year 2023/24 Adopted Budget.

TABLE 29. OTHER CITY REVENUE
Description
Fiscal Year
2023/24 Value
Other Taxes $16,483,370
Licenses & Permits 2,145,500
Fines & Forfeitures 873,000
Charges for Services 15,083,000
Other Revenue 262,000
Other City Revenue $34,846,870

To estimate the overall impact that future development will have on the listed Other City Revenue sources, it is
assumed that current per capita revenue amounts will serve as the best indicator of future per capita revenue amounts. Therefore, to best allocate Other City Revenues to projected future development, the multiplier approach is utilized. It was previously identified that the total number of persons served within the City is 180,864 and the employee population is 62,129. Using the current City persons served and employee population, the Other City Revenue per person served or employee served can be determined, as shown in the following table.

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TABLE 30. OTHER CITY REVENUE PER PERSON SERVED/EMPLOYEE Description
Fiscal Year
2023/24 Value
Current City Persons Served
or Employee Count (1)
Amount per Person
Served/Employee (2)
Other Taxes $16,483,370 180,864 $91.14
Licenses & Permits (3) 2,14 5,500 62,129 34.53
Fines & Forfeitures 873,000 180,864 4.83
Charges for Services 15,083,000 180,864 83.39
Other Revenue 262,000 180,864 1.45
(1) Identified in Table 1.
(2) Equal to (Fiscal Year 2023/24 Value) / (Current City Persons Served or Employee Count). (3) Revenue calculated on a per-employee basis due to approximately 60% of revenue deriving from business activity (i.e., business licenses).

To determine the amount of other City revenue allocated to projected residential and non-residential dev
elopment, the amount per person served/employee calculated in Table 30 is multiplied by the increase in persons served or employees that will result from future development.

TABLE 31. OTHER CITY REVENUE GENERATED BY FUTURE DEVELOPMENT Description
Increase in Persons
Served/Employees (1)
Amount per Person
Served/Employee (2) Other City Revenue
Other Taxes 27,750 $91.14 $2,529,135
Licenses & Permits 20,677 34.53 713,976.81
Fines & Forfeitures 27,750 4.83 134,032
Charges for Services 27,750 83.39 2,314,072
Other Revenue 27,750 1.45 40,237
Total $5,731,454
(1) Identified in Table 3.
(2) Calculated in Table 30.

Revenue Summary
Projected residential and non-residential development will generate various forms of general revenues for the
City. A portion of the anticipated revenue was calculated utilizing the case study approach and the remaining City revenue was allocated to projected future development using the multiplier approach. A summary of the revenues projected to be generated by future development is presented in the following tables.

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TABLE 32. REVENUE SUMMARY
Revenue
Description Total
Property Tax $4,029,982
Property Tax in Lieu of VLF 3,974,449
Documentary Transfer 171,055
Sales Tax 16,682,266
Other (1) 5,73 1,454
Total $30,589,206
(1) Allocated to each development type in Table 33 on a per person served/employee basis. For purposes of
this analysis, new development Single-Family and
Small Lot Single-Family are assumed to have 2.71
persons per unit, while new development
Townhomes, Apartment/Condos, and Affordable
Housing are assumed to have 2.25 persons per unit.

This maintains the current MFR/SFR persons per unit
ratio in the City of 0.83. Allocations of employees for Commercial and Industrial are 50% of the employees
determined in Table 16.

TAB
LE 33. REVENUE SUMMARY BY FUTURE DEVELOPMENT TYPE
Development Type Total
Single-Family $1,389,114
Small Lot Single-Family 511,023
Townhomes 565,723
Apartments/Condos 4,274,346
Affordable Housing (Low Income) 924,208
Commercial 21,799,521
Industrial 1,125,271
Total $30,589,206
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SECTION 4 | EXPENDITURES ESTIMATE
The revenues identified in Section 3 of this report are intended to pay for recurring expenditures related to general services provided by the City. City General Fund expenditures not considered in this analysis include costs associated with infrastructure improvements, special fund expenditures, governmental transfers, and expenses supported by one-time development fees.

For purposes of determining the overall fiscal impact of projected residential and non-residential development, City expenditures are allocated based upon amounts presented in the Fiscal Year 2023/24 Adopted Budget.

Current Service Level Expenditures
Future development will add residents and employees to the City’s existing population base. This residential and
employee population increase will place additional demands on existing services provided by the City.

To account for increased expenditures associated with additional demand for public services, City expenditures are allocated to projected development using the multiplier approach. However, development- induced increases in demand for public services will not necessarily result in a direct 1:1 relationship increase in expenditures (i.e., there are some “step” functions). For example, a 20% increase in the City’s residential population will likely not cause a 20% increase in City Clerk or City Council expenditures. A portion of the City’s expenditures are fixed or will increase marginally as a result of population increases. Therefore, to account for relationships between expenditures and population changes that are less than 1:1, City expenditures have been adjusted to conservatively estimate the impact of projected development on City expenditures. Of note, City expenditure adjustments are estimates based on the individual characteristics of projected development and industry-standard assumptions. The original budgeted expenditure amounts, the demand adjustment percentage, and the adjusted expenditure amounts are presented in the following table.

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TABLE 34. CURRENT SERVICE LEVEL EXPENDITURES
Description
Estimated Fiscal Year
2023/24
Expenditures
Demand
Adjustment
Percentage (1)
Adjusted Fiscal
Year 2023/24
Expenditures (2)
General Government Services $7,191,240 50% $3,595,620
Community Services 10,748,430 75% 8,061,323
Development Services 8,343,060 90% 7,508,754
Public Works 12,398,470 90% 11,158,623
Radio Communications - 0% -
Police 54,209,820 95% 51,499,329
Fire 33,599,220 95% 31,919,259
Center for the Arts 3,247,370 50% 1,623,685
Non-Departmental/Community Relations 1,154,460 50% 577,230 Totals $130,892,070 $115,943,823
(1) Estimated; subject to change.
(2) Equal to (Estimated Fiscal Year 2023/24 Expenditures) x (Demand Adjustment Percentage).

Afte
r adjusting the estimated Fiscal Year 2023/24 Expenditures to account for relationships that are less than a 1:1 relationship, the total expenditure amount to be considered is approximately $115.94 million. This figure is used to determine the current service level expenditures per person served in the City, which in turn is used to calculate what additional current City expenditures will result from projected development.

Allocation of Expenditures to Population Served
Each City expenditure line item was categorized as being tied to serving the residential and employee pop
ulation, solely the residential population, or solely the employee population. As previously noted, the total number of persons served in the City is 180,864, the number of residents served in the City is 149,799, and the number of employees served is 62,129. The following table provides the persons served category for each of the recurring current expenditure categories.

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TABLE 35. EXPENDITURES ALLOCATION TO PERSONS SERVED, RESIDENTS SERVED, OR EMPLOYEES SERVED
Description Persons Served
General Government Services Persons Served
Community Services Persons Served
Development Services Persons Served
Public Works Persons Served
Radio Communications Persons Served
Police Persons Served
Fire Persons Served
Community Relations Persons Served
Non-Departmental Persons Served
Current Service Level Expenditures per Person Served
Using the multiplier approach, the number of persons served within each expenditure category is applied to the
corresponding adjusted expenditure line item to determine the allocable expenditure per person. The table below provides the current service level expenditures per person served for each of the listed expenditure categories.

TABLE 36. CURRENT SERVICE LEVEL EXPENDITURES PER PERSON SERVED Description
Adjusted Fiscal
Year 2023/24
Expenditures (1)
Current City Persons
Served (2)
Amount per
Person Served (3)
General Government Services $3,595,620 180,864 $19.88
Community Services 8,061,323 180,864 44.57
Development Services 7,508,754 180,864 41.52
Public Works 11,158,623 180,864 61.70
Radio Communications - 180,864 -
Police 51,499,329 180,864 284.74
Fire 31,919,259 180,864 176.48
Center for the Arts 1,623,685 180,864 8.98
Non-Departmental/Community Relations 577,230 180,864 3.19 Totals $115,943,823 $641.06
(1) Identified in Table 34.
(2) Identified in Table 1.
(3) Equal to (Adjusted Fiscal Year 2023/24 Expenditures) / (Current City Persons Served).

To determine the amount of other current service level expenditures allocated to projected residential and non
-residential development, the amount per person served calculated in Table 36 is multiplied by the increase in persons served or residents that will result from future development.

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TABLE 37. CURRENT SERVICE LEVEL EXPENDITURES GENERATED BY FUTURE DEVELOPMENT Description
Increase in
Persons Served (1)
Amount per
Person Served (2)
Current
Expenditures (3)
General Government Services 27,750 $19.88 $551,670
Community Services 27,750 44.57 1,236,817
Development Services 27,750 41.52 1,152,180
Public Works 27,750 61.70 1,712,175
Radio Communications 27,750 - -
Police 27,750 284.74 7,901,535
Fire 27,750 176.48 4,897,320
Center for the Arts 27,750 8.98 249,195
Non-Departmental/Community Relations 27,750 3.19 88,522 Total $641.06 $17,789,415
(1) Identified in Table 3.
(2) Identified in Table 36.
(3) Equal to (Increase in Persons Served) x (Amount per Person Served).

Target Service Levels – Police
The City seeks to provide an optimal level of Police Services to its population by maintaining a minimum ratio of 1
.30 sworn officer per 1,000 residents (“Target Sworn Police Ratio”). Currently, the City’s ratio of sworn officers per 1,000 residents is approximately 1.06. The cost of providing this below-target level of service to the City’s projected total future population is captured in the calculation of current expenditures in Table 37.

To meet its Target Sworn Police Ratio and provide a target level of Police Services to all future residents, the City requires an additional 37 sworn Police Officers. The table below details the positions and annual costs of the additional personnel needed to provide an optimal level of service to the current City population.

TABLE 38. ANNUAL COST OF ADDITIONAL POLICE PERSONNEL FOR TARGET SERVICE LEVEL Position Title
Number of
Positions
Annual Cost per
Position (1)
Total
Annual Cost
Police Officer 37 $172,645 $6,387,865
Total 37 $6,387,865
(1) Equal to annualized cost at the fully burdened hourly rate per the City’s finance department.

Total Additional Police Expenditures calculated in the previous table are allocated to projected future dev
elopment based on the projected increase in persons served attributable to future development, as shown in the following table.

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TABLE 39. TARGET POLICE SERVICE LEVEL EXPENDITURES ATTRIBUTABLE TO FUTURE DEVELOPMENT Description Value
Total Future Persons Served (1) 208 ,614
Change in Persons Served (2) 27, 750
Change in Persons Served % of Total Future Persons Served (3) 13. 30% Additional Police Expenditures Attributable to Future Development (4) $849,719 (1) Identified in Table 2.
(2) Identified in Table 3.
(3) Equal to (Change in Persons Served) / (Total Future Persons Served). (4) Equal to (Total Annual Cost of Needed Additional Police Personnel calculated in Table 38) x (Change in Persons Served % of Total Future Persons Served).

Combining the total annual cost of the positions detailed in Table 38 and the Police Services component of the
Public Safety Current Expenditures calculated in Table 37, this analysis arrives at the estimated cost of providing Police Services at the City’s target service level to the projected increase in persons served attributable to future development.

Target Optimal Service Levels – Fire
The City seeks to provide a target level of Fire Services to its population. The table below details the positions and
annual costs of the additional personnel needed to provide an optimal level of service to the current City population.

TABLE 40. ANNUAL COST OF ADDITIONAL FIRE PERSONNEL FOR TARGET SERVICE LEVEL Position Title
Number of
Positions
Annual Cost
per Position (1)
Total
Annual
Cost
Fire Division Chief (Emergency Medical Services) 1 $254,930 $254,930 Management Analyst 1 98,200 98,200
Nurse Educator 1 167,800 167,800
Fire Captain (Admin Services & Paramedic Squad) 4 198,700 794,800 Firefighter Paramedic 3 153,910 461,730
Emergency Medical Technicians 8 64,110 512,880
Deputy Fire Marshall 1 116,880 116,880
Fire Prevention Specialist 4 86,100 344,400
Administrative Assistant 1 68,347 68,347
Fire Inspector/Community Risk Reduction Officer-Part Time 1 64,575 64,575 Total 25 $2,884,542
(1) Equal to annualized cost at the fully burdened hourly rate per the City’s finance department.

Total Additional Fire Expenditures calculated in the previous table are allocated to projected future dev
elopment based on the projected increase in persons served attributable to future development, as shown in the following table.

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TABLE 41. TARGET POLICE SERVICE LEVEL EXPENDITURES ATTRIBUTABLE TO FUTURE DEVELOPMENT Description Value
Total Future Persons Served (1) 208 ,614
Change in Persons Served (2) 27, 750
Change in Persons Served % of Total Future Persons Served (3) 13. 30% Additional Police Expenditures Attributable to Future Development (4) $383,704 (1) Identified in Table 2.
(2) Identified in Table 3.
(3) Equal to (Change in Persons Served) / (Total Future Persons Served). (4) Equal to (Total Annual Cost of Needed Additional Fire Personnel calculated in Table 40) x (Change in Persons Served % of Total Future Persons Served).

Combining the allocable expenditures detailed in Table 40 and the Fire Services component of the Public Safet
y Current Expenditures calculated in Table 37, this analysis arrives at the estimated cost of providing Fire Services at the City’s target service level to the projected increase in persons served attributable to future development.

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Total Expenditures Summary
Projected residential and non-residential development will cause the City to incur various forms of exp
enditures to provide an optimal/target level of public services to its current and future populations. A summary of the expenditures projected to be generated by future development is presented in the following tables.

TABLE 42. EXPENDITURES SUMMARY
Expenditure
Description Total
Current Expenditures $17,789,415
Target Service Level Expenditures – Police 849,719
Target Service Level Expenditures – Fire 383,704
Total (1) $19,022,838
(1) Allocated to each development type in Table 43 on a per person served/employee basis. For purposes of this analysis, new development Single- Family and Small Lot Single-Family are assumed to have 2.71 persons per unit, while new development Townhomes, Apartment/Condos, and Affordable Housing are assumed to have 2.25 persons per unit. This maintains the current MFR/SFR persons per unit ratio in the City of 0.83. Allocations of employees for Commercial and Industrial are 50% of the employees determined in Table 16.

TABLE 43. EXP

ENDITURES SUMMARY BY FUTURE DEVELOPMENT TYPE
Development Type Total
Single-Family $1,180,651
Small Lot Single-Family 503,008
Townhomes 701,675
Apartments/Condos 6,479,054
Affordable Housing (Low Income) 3,071,242
Commercial 6,053,500
Industrial 1,033,708
Total $19,022,838

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SECTION 5 | FISCAL IMPACT
Based on the estimated total revenue calculated in Section 3 and the estimated total expenditures calculated in Section 4, there is a net negative fiscal impact as a result of projected future development within the City.

The table below sets forth the total anticipated negative fiscal impact.

TABLE 44. ANNUAL FISCAL IMPACT
Description Value
Total City Revenue $30,589,206
Total City Expenditures (19,022,838)
City Positive / (Negative) Fiscal Impact $11,566,368

The fiscal impact future development is projected to have on the City’s General Fund is presented in the following table.

TABLE 45. FISCAL IMPACT BY DEVELOPMENT TYPE
Development Type Revenue Expenditures Fiscal Impact
Single-Family $1,389,114 ($1,180,651) $208,462 Positive Small Lot Single-Family 511,023 (503,008) 8,015 Positive Townhomes 565,723 (701,675) (135,952) Negative
Apartments/Condos 4,274,346 (6,479,054) (2,204,708) Negative Affordable Housing (Low Income) 924,208 (3,071,242) (2,147,034) Negative Commercial 21,799,521 (6,053,500) 15,746,021 Positive
Industrial 1,125,271 (1,033,708) 91,562 Positive
Totals $30,589,206 ($19,022,838) $11,566,368

The net fiscal impact identified in this section is based on revenues and expenditures projected to be generated by future development within the City. A portion of the expenditures considered when calculating the net fiscal impact are not eligible to be recovered through Community Facilities District special tax revenues. Thus, any revenues generated through Community Facilities District special tax rates proposed through this report must and can only be used to finance eligible services, as detailed in Section 6 of this report. NBS recommends that just the total negative fiscal impact among Townhomes, Apartments/Condos, and Affordable Housing (Low Income) is ($4,487,693) be factored into the formulation of special tax rates for any potential Community Facilities District, even though the overall impact to the General Fund is positive (mostly due to estimated future Commercial development). This is because non-residential development may or may not develop as anticipated in this report.

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SECTION 6 | FISCAL IMPACT FUNDING OPTIONS
To mitigate the negative fiscal impacts identified in Section 5 of this report, the City should consider the establishment of a special financing district (“SFD”), which could include a special tax or a special assessment.

Since the City’s negative fiscal impacts are attributable to the provision of general services, a special assessment may not be the most appropriate funding option for the City to mitigate those impacts. Special assessments require the identification and separation of general and special benefits. Special benefits can be assessed to property, but all general benefits must be funded by sources other than the special assessments. Therefore, a special assessment would not entirely alleviate the identified negative fiscal impacts. Alternatively, the City could implement a special tax.

Community Facilities District
A Community Facilities District (“CFD”), also referred to as a Mello-Roos District, is a type of SFD that is est
ablished via the Mello-Roos Community Facilities District Act of 1982 (“1982 Act”). Through the levy and collection of a special tax, CFDs provide funding for authorized public improvements and/or public services.

The CFD’s Rate and Method of Apportionment includes procedures for identifying and classifying property within the CFD, establishing the initial maximum special tax rates, and the formula for calculating the annual special tax and assigning the special tax to taxable property within the CFD. Since a CFD authorizes the levy and collection of a special tax as opposed to a special assessment, there is no requirement to make a finding of special benefit for the property subject to the special tax. However, the special tax should be based on a benefit received by property, the cost of providing the facilities or services, or some other reasonable basis for assigning the special tax, as determined by the relevant legislative body.

To establish a CFD, the 1982 Act requires two-thirds approval of the registered voters, residing within the proposed CFD boundary, voting in the special tax election. If there are less than 12 registered voters within the proposed CFD boundaries, then a landowner special tax election can take place. In the case of a landowner special tax election, a two-thirds approval is still required, and each landowner receives one vote per acre or portion of an acre of land owned. It should be noted that if a CFD is approved via a landowner special tax election, the CFD is only authorized to fund additional services. In Building Industry Association of the Bay Area v. City of San Ramon , the California Appellate Court held that a landowner-approved CFD can only fund the increase in demand for pre-existing services, so long as the special tax revenue is not available for general government purposes. The additional services funded by the CFD shall not replace services already available and provided within the boundaries of the CFD. Furthermore, special tax revenue generated from the CFD can only be used to fund the authorized public services outlined in the 1982 Act.

CFD authorized public services include fire protection and park maintenance/lighting services. It should be noted that any CFD formed by the City, as well as any potential annexations to that CFD, would be approved by a landowner special tax election, as new development projects would be required to participate in the CFD as a condition of approval.

FUTURE DEVELOPMENT SPECIFIC COSTS
In addition to using a CFD to mitigate the negative fiscal impacts of future development, the CFD can also fund
authorized CFD services that are intended to provide an enhanced level of service or services that are unique to future development. These services would be in addition to any identified negative fiscal impacts Attachment "1"
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placed upon the City in providing existing levels of public services. Funding for any enhanced and/or additional recurring public service costs, including repairs and replacements, reserves and administration can be accomplished through a CFD.

BENE

FITS TO THE CITY
Through the formation of a CFD, the City can establish an ongoing funding source that mitigates negative fiscal
impacts created by future residential and non-residential development, as well as provide funding for new or enhanced services within the City. To keep pace with changing costs, the CFD’s maximum special tax rate can include an annual escalation factor based on an annual fixed amount or tied to a specific inflation index. Furthermore, the CFD special tax can be established without a sunset date so that the CFD special tax can be levied in perpetuity or until voters choose to end it.

CFD Special Tax Recommendation
For the City to continue to provide vital public services its population base as it continues to grow, the City mus
t ensure that developing property pays their fair share of any additional financial burdens placed upon the City’s operational budget, including the cost of additional services required because of such development.

To mitigate the negative fiscal impacts identified in Section 5 of this report, the City should consider establishing a CFD. The levy and collection of the special tax could generate sufficient revenue to offset the negative fiscal impacts to the City. Furthermore, a CFD provides the flexibility to generate additional revenue to fund any enhanced or new project specific costs desired by future development. The CFD’s Rate and Method of Apportionment establishes the special tax formula and sets the initial maximum special tax rates.

A benefit of a CFD is that it allows for a great deal of flexibility in structuring the special tax formula so that the formula and maximum special tax rates best fit and accomplish specific needs. In this case, the CFD special tax rates could be sized to recover the annual negative fiscal impact on development, recover ongoing administrative costs related to the CFD, and could be structured to create both residential special tax rates and non-residential special tax rates.

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CFD SPECIAL TAX RATES
Based on the overall fiscal impact to the City’s General Fund resulting from projected future residential dev
elopment, the proposed annual base CFD special tax rates for general City services are provided in the following table for consideration by the City.

TABLE 46. NEGATIVE FISCAL IMPACT CFD SPECIAL TAX RATES
Development
Type
CFD
Special Tax
Rates (1) Per
Number
of Units
Revenue
Generated
Rate as % of
Value per Unit
Townhomes $761 Dwelling Unit 455 $345,752 0.13%
Apartments/Condos 987 Dwelling Unit 4,197 4,141,941 0.23% Totals 4,651 $4,487,693
(1) Rates for services portion; does not include potential CFD administration or reserve/contingency costs.

The CFD special tax rates presented in Tables 42 would represent initial CFD maximum special tax rates to mitig
ate the identified negative fiscal impacts.

The City could also increase the total CFD maximum special tax rates to cover the added costs for administering the CFD, as well as establish any reserves or contingency funds. Furthermore, the CFD would be structured to include a special tax escalation factor, which would allow for an annual increase to the initial CFD maximum special tax rates. While the CFD maximum special tax rates would increase on an annual basis, the City is not required to levy the special tax at the CFD maximum special tax rates each year. To meet the CFD annual special tax requirement and fund authorized services and administrative costs, the City has the flexibility to levy a CFD special tax amount that is less than or equal to the CFD maximum special tax.

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RESOLUTION NO. 2023-156

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ACTING AS LEGISLATIVE BODY
OF COMMUN ITY FACILITIES DISTRICT NO. 2020-1
(PUBLIC SERVICES), PROVIDING FOR THE LEVY OF AN

ANNUAL SPECIAL TAX FOR SUCH COMMUNITY FACILITIES
DISTRICT FOR FISCAL YEAR 2023/24

WHEREAS, the City Council of the City of Escondido , C alifornia (the “Legislative Body”), has initiated proceedings, held a public hearing, conducted an election , and received a favorable vote from the qualified electors to authorize the levy of a Special T ax in a Community Facilities D istrict, all as authorized pursuant to the terms and provisions of the “Mello -Roos Community Facilities Act of 1982 ,” being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”).

This Community Facilities District is designated as Community Facilities District No . 2020-1 (Public Services) (the “District”); and
WHEREAS, this Legislative Body, by the adoption of the Ordinance No. 2020-1 (the “Ordinance”) pursuant to Section 53340 of the Government Code of the State of California, has authorized the levy of Special Taxes (as such term is defined in the Ordinance) within the District to finance authorized facilities; and
WHEREAS, Government Code section 53340 provides that this legislative body may provide, by resolution, for the levy of the Special Taxes in the current tax year at the same rates or at a lower rate than the indexed rates provided for in the Ordinance, if such resolution is adopted and a certified list of all parcels subject to the Special Tax levy including the amount of the Special Tax to be levied on each parcel for the current tax year (the “Certified Parcel List”) is timely filed by the clerk or other official designated by this legislative body with the Auditor of the County of San Diego (the “County Auditor”) on or before August 10 of the applicable tax year; and
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WHEREAS, this legislative body previously levied Spec ial Taxes on the District in the current tax year with the adoption of Resolution No. 2023-82 on August 9, 2023; and WHEREAS, the County of San Diego allow s for this legislative body to provide, by resolution, for decreases after August 10 to the levy of Special Taxes previously set in the current tax year for a fee of $15.00 per parcel on the Certified Parcel List.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California, acting as the legislative body of Community Facilities District No. 2020-1 (“Public Services”):

1. That the above recitations are true.

2. That this legislative body hereby authorizes and provides for the reduction of the levy of the Special Tax within the District on those Taxable Properties (as such term is defined in the Ordinance) within the District for Fiscal Year 2023/24 so long as the rates of such Special Tax are the same rates or lower rates than the rates provided for in the Ordinance. The Proposed Reduced Special Tax Rates for the District for Fiscal Year 2023/24 are contained on Exhibit “A” attached to this Resolution and incorporated by this reference. After adoption of this Resolution, the Finance Director of the City, or Finance Director’s designee, may make any necessary modifications to these Special Tax Rates to correct any errors, omissions or inconsistencies in the listing or categorization of parcels to be taxed or in the amounts to be charged to any category of parcels; provided, however, that any such modifications shall not result in an increase in the Special Tax applicable to any category of parcels and can only be made prior to the submission of the tax rolls to the County Auditor.

3. That the Finance Director is hereby designated and directed to prepare and submit a Certified Parcel List to the County Auditor setting forth the amount of the Special Tax to be levied on each Taxable Property within the District calculated pursuant t o the Ordinance and subject to the limitations set forth in Section 2 above, along with remittance of a fee of $15.00 per parcel in the Certified Parcel List. 220
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4. That th e Special Tax shall be collected in the same manner as ordinary ad valorem property taxes are collected, and shall be subject to the same penalties and same procedure and sale in cases of any delinquency for ad valorem taxes, and the Treasurer-Tax Collector of the County of San Diego is hereby authorized to deduct reasonable administrative costs incurred in collecting any said Special Tax.

Any Special Taxes that may not be collected on the County of San Diego (“County”) tax roll shall be collected through a direct billing procedure by the Treasurer of the City of Escondido, or his/her designee acting for and on behalf of the District.

5. That the County Auditor is hereby directed to enter in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land affected in a space marked “public improvements, special tax” or by any other suitable designation, the installment of the Special Tax.

6. That the County Auditor shall then, at the close of the tax collection period, promptly render to the District a detailed report showing the amount and/or amounts of such Special Tax installments, interest, penalties and percentages so collected and from what property collected, and also provide a statement of any percentages retained for the expense of making any such collection.

THE FOLLOWING RESOLUTION LANGUAGE SHALL ONLY BE INCLUDED IF THE CITY COUNCIL CHOOSES “OPTION C”, “OPTION D”, “OPTION F”, OR “OPTION G” WHEN ADOPTING THIS RESOLUTION

7. That the Finance Director shall insure that revenue realized via the Special Tax shall be restricted to funding for the Police Department and Fire Department of the City of Escondido.

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City of Escondido Community Facilities District No. 2020-1 (Public Services) Special Tax Rates for Fiscal Year 2023/24
Applicable to all Units Annexed as of March 1, 2023

INSERT THE APPROPRIATE TAX TABLE TO REFLECT THE OPTION CHOSEN BY THE ESCONDIDO CITY COUNCIL WHEN ADOPTING RESOLUTION NO.2023-156
THE OPTIONAL TAX TABLES ARE ON THE FOLLOWING FOUR PAGES, LABELED “OPTION B”, “OPTION C”, “OPTION D”,” OPTION E”, “OPTION F”, “OPTION G”, AND “OPTION H”. THERE IS NO TABLE LABELED “OPTION A” BECAUSE SELECTION OF THIS OPTION MEANS THAT RESOLUTION NO. 2023 -156 IS NOT ADOPTED AND NO CHANGES ARE BEING MADE TO THE LEVIES ADOPTED ON AUGUST 9. 2023.

1. The Assigned Special Tax Rates have been reduced from those set by the Escondido City Council on August 9, 2023 via Resolution No. 2023-82.

2. The Proposed Actual Special Tax shown above is the authorized levy for the current fiscal year. The submitted actual levy may be reduced as directed by the Finance Director.

3. Dwelling unit or "DU" is as defined in the formation documents.

Resolution No. 2023-156
Exhibit "A"

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Resolution No. 2023-156
Exhibit "A"

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Resolution No. 2023-156
Exhibit "A"

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Resolution No. 2023-156
Exhibit "A"

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Resolution No. 2023-156
Exhibit "A"

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STAFF REPORT

December 13, 2023
File Number 0800-30

SUBJECT

A REQUEST TO REMOVE A CONDITION OF APPROVAL APPLIED TO A MAJOR PLOT PLAN REQUIRING

FUNDING OF ONGOING MUNICIPAL SERVICES REQUIRED BY THE PROJECT

DEPARTMENT
Development Services Department, Planning Division

RECOMMENDATION
Request that the City Council uphold the Planning Commission recommendation of denial ( 4-2-1) to modify a Major Plot Plan in order to eliminate a condition of approval requiring funding of ongoing municipal services. The request is for a project condition of approval required for a 44-unit apartment project located at 1860, 1866, 1870 & 1896 S. Escondido Blvd. and the City Council may a) adopt Resolution No. 2023-152, denying a modification and upholding a condition of approval; or b) adopt Resolution No. 2023-153, granting the modification and waiving the condition of approval.

Staff Recommendation: Recommend City Council deny the modification request and uphold the Planning Commission’s denial (Development Services Department: Veronica Morones) Planning Commission Recommendation: Denial to modify a Major Plot Plan to eliminate a condition of approval of ongoing municipal services. (Vote: 4-2-1)
Presenter: Veronica Morones, City Planner

BACKGROUND
The Planning Division issued an administrative approval for a Major Plot Plan, inclusive of a density bonus, on April 5, 2022, for a 44 -unit apartment complex located at northeastern corner of S. Escondido Blvd. and Vermont Avenue (addressed as 1860, 1866, 1870 & 1896 S. Escondido Blvd .) The Project approval includes four units that will be deed-restricted for very-low-income households as detailed in Attachment 1 (Major Plot Plan Conditional Letter of Approval ). The Applicant/Owner signed an “Acknowledgement and Acceptance of Conditions of Approval,” dated April 14, 2022, which included Condition of Approval No. 15 to fund operational costs of providing municipal services for Community Facilities District No. 2020-

01. The applicant requests to modify the Major Plot Plan to eliminate the condition of approval that requires the developer to fund ongoing operational costs of providing municipal services required for the approved project. The applicant contends the modification request is necessary in order to make the project 227
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financially feasible as detailed in the request letter submitted by the applicant in April 2023 , provided under Attachment 2 (Applicant Request Letter). All other aspects of the approved project are not subject to this request.

This request was originally noticed and scheduled for the August 22, 2023 Planning Commission meeting; however, the item was continued to the September 12, 2023 meeting. At the September 12th meeting, the Planning Commission voted 4-2-1 to recommend denial of the request to City Council.

FISCAL ANALYSIS
Based on the adopted Director Decision approving the Major Plot Plan , the subject property falls under the “Urban V” rate at $778.01 (Fiscal Year 22-23) per unit per year through June 30, 2023. This rate reflects the overall project density of 40 units/acre. Based on the proposed 44-unit development, the 2022/2023 estimated annual amount for ongoing services is $3 4,232 (44 units x $778.01 rate) , subject to an 2% annual adjustment.

As a part of the City of Escondido’s ongoing effort to address projected budget shortfalls, the city conducted a Fiscal Impact Analysis (“FIA”) for new residential development in 2019. The FIA determined the per capita cost of providing municipal services for new residential development involving Police, Fire, Public Works, Community Services, and General Services (support departments) exceeds the anticipated revenue received, including property taxes, property tax in lieu of vehicle license fees, intergovernmental, property transfer tax, fines, forfeitures, permits, licenses, and sales tax generated by new residents. Based on these findings, the current structural budget deficit is anticipated to increase with each new residential development project approved. Below is a summary of the FIA findings by development type for a typical 5-acre site at the time the analysis was conducted:

Single Family Small Lot Single
Family
Townhomes Apartment/Condos
Project Size (5-acre site) 25 units 75 units 125 units 200 units Avg. Density 5 units/acre 15 units/acre 25 units/acre 40 units/acre Revenue Generate $52,900 $128,800 $157,900 $204,700
Cost to Provide
Municipal Services
$66,300 $184,500 $248,500 $361,200
Annual Unfunded Cost $13,400 $55,700 $90,600 $156,500
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Unfunded Cost/Unit $536 $743 $725 $783
City policy currently requires all residential development to offset its impact on the general fund by providing an ongoing funding source to pay for public services demanded by the project. The following is a brief history of the creation, purpose, and implementation of that policy:
 On June 12, 2019, the City Council directed staff to investigate all options to address the structural budget deficit to ensure the budget deficit does not grow as the City dev elops, including evaluating the feasibility of a Citywide Services Community Facilities District (“CFD”) as a streamlined means for projects to offset their ongoing impact to the general fund.  On April 8, 2020, the City Council indicated its intent to requ ire new residential development to offset the ongoing costs of providing public services.
 On May 13, 2020, the City Council held a duly noticed public hearing and adopted Resolution No. 2020-44 (Resolution of Formation) establishing CFD 2020-1, the Citywide Services CFD.  On September 16, 2020, the City Council adopted Resolution No. 2020-115 annexing five projects with 66 units into CFD 2020-1 creating the second (2) zone of the Services CFD (Zone 2020-2).  On September 23, 2020, the City Council restated it s intent to require new residential development to offset the ongoing costs of providing public services, specifically noting that the requirement be applied to any project approved after May 13, 2020.  On October 21, 2020, the City Council adopted Resoluti on No. 2020 -147 annexing a 42 -unit project located at 2608 S. Escondido Blvd. into CFD 2020-1 and creating the third (3) zone of the Services CFD (Zone 2020-03).
 On November 18, 2020, the City Council adopted Resolution No. 2020 -160 annexing two (2) projects containing 21 units into CFD 2020 -1 creating the fourth zone of the Services CFD (Zone 2020-04).
 On July 21, 2021, the City Council adopted Resolution No. 2021-77 approving the special tax rate for CFD 2020-1 (Public Services) for fiscal year 2021/22.  On September 15, 2021, the City Council adopted Resolution No. 2021 -130 annexing three (3) projects containing 65 units into CFD 2020-1 creating the fifth (5) zone of the Services CFD (Zone 2020-5).
 On March 2, 2022, the City Council adopted Resolution No . 2022-14 annexing two (2) projects containing 44 units into CFD 2020-1 creating the sixth (6) zone of the Services CFD (Zone 2020-6).  On July 20, 2022, the City Council adopted Resolution No. 2022-87 approving the special tax rate for CFD 2020-1 (Public Services) for fiscal year 2022/23.

Council policy requires that all new residential development s off-set their impacts to ongoing municipal services. This requirement is identified as Condition of Approval II.15 in the Letter of Conditional Approval dated April 5, 2022(See Attachment “1”). Specifically, the condition states:
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“Community Facility District or Funding Mechanism. The Applicant shall fund all on-going operational costs of providing municipal services required for the Project, the amount of such funding to be determined by the City Council at the time of Project approval. Such funding shall occur through either an agreement to form or annex into a Community Facilities District (“CFD”) or the establishment of another lawful funding mechanism reason ably acceptable to the City (“Public Services Funding Agreement”). The provisions of the Public Services Funding Agreement shall specify any terms and limitations necessary to implement the CFD or other funding mechanism to offset the impacts to public services associated with the project. The City Manager, or City Manager’s designee, shall be authorized to approve and execute the Public Services Funding Agreement, and the Public Services Funding Agreement shall be finalized prior to the City’s issuance of any permit for the Project.” The condition cited above is consistent with existing City Council policy requiring all residential development to offset its impact on the general fund by providing an ongoing funding source to pay for public services demanded by the project.

The condition provides an option for the applicant to either form or annex into the CFD or the establishment of another lawful funding mechanism reasonably acceptable to the City (“Public Services Funding Agreement”). Should the applicant choose to form or annex into a CFD, the estimated fee based on the density of the project (Fiscal 20222/2023), which is adjusted annually, is identified in the table below:

CFD (2022/2023)
levy per unit Total # of Total annual Cost per unit
40+ du/ac (year) Units levy monthly
$778.01 44 $34,232 $64.83
Modification to a Major Plot Plan in order to eliminate a condition of approval requiring funding of ongoing municipal services requires review by the Planning Commission. However, because the Planning Commission does not have the authority to waive City Council policies and fees, they serve in an advisory role to the City Council on this matter. For context, the City Council considered two project appeals (fall of 2022) of the same condition of approval that requires new residential development to offset its fiscal impacts to ongoing municipal services. In b oth instances, the City Council granted the appeal of the standard condition of approval and waived the requirement for payment for ongoing municipal services for those two projects. However, it should be noted that both of those requests involved an appeal of the condition within the allotted 10 -day appeal period whereas this request is a modificat ion to the Major Plot Plan previously approved in April 2022.

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DENSITY BONUS ANALYSIS
Density bonus law (Government Code section 65915 et. seq.) and Article 67 of the Escondido Zoning Code (Density Bonus and Residential Incentives) are intended to encourage the development of affordable housing. This is accomplished through the allowance for an increase in residential density above what would typically be allowed for a property, and through the provision of incentives and waivers from development standards that make construction of the project infeasible.

Allowable increases in density are based on a sliding scale that involves the percentage of affordable units being provided, and the level of affordability of those units. Current zoning for the subject property would allow a total of 32 base units; however, by deed restricting 13% of those units (amounting to four-units) for very-low-income households, the project is eligible for a 42.5% increase in allowable density (12 units), resulting in a total allowance of 44 units.

The percentage of affordable units and level of affordability also entitles the applicant to three incentives and concessions. The applicant requested no incentives for this project ; however, the applicant did request a concessi on for the reduction in required open space (from 300 square feet per unit to 205 square feet per unit). Under the requested modification to the Major Plot Plan, the applicant now requests the elimination of the requirement to fund ongoing operational costs of providing municipal services required for the project as an incentive to facilitate the construction of the project.

Government Code section 65915(l) states that density bonus law “…does not limit or require the provision of direct financial incentives for the housing development, including the provision of publicly owned land, by the city, county, or city and county, or the waiver of fees or dedication requirements.” Similarly, section 33-1414(a)(2)(E) of the City of Escondido Municipal Code stat es that “the city council may, but is not required to, provide direct financial incentives, including direct financial aid in the form of a loan or grant, the provision of publicly owned land, or the waiver of fees or dedication requirements.” Staff has applied the condition of approval in question based on existing City Council Policy. Neither City policy nor the Government Code give staff the authority to waive or modify the condition; however, the City Council does have the authority to do so.

PLANNING COMMISSION RECOMMENDATION
The Planning Commission considered the modification request at its September 12, 2023 meeting and denied the applicant’s request to modify a Major Plot Plan by a vote of 4-2-1; Commissioners Barber and Mecaro voted no; Commissioner Barba was absent. A copy of the Planning Commission staff report is included with this report as Attachment 3.

The Commissioners discussed the difference between the two prior appeals of the specific condition of approval and this modification to a Major Plot Plan to eliminate the specific condition of approval requiring funding of ongoing municipal services. During deliberation, Commissioner Barber moved to 231
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grant the modification for the four -units that would be deed -restricted as affordable units, motion was seconded by Commissioner Mecaro, but failed to gain a majority (2 -4-1 voting), and as a result, failed.

After subsequent deliberation and questions on processing and timing, Commissioner Speer offered a motion to approve staff’s recommendation to deny the modification and was seconded by Commissioner Weiler. The Planning Commissioners voted for the denial by a 4-2-1 vote, as noted above.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (“CEQA”) Guideline’s list classes of projects that have been determined to not have a significant effect on the environment and as a result are exempt from review under CEQA. The Project site is located within a developed urban area of the city and previously developed with residential structures. The proposed project qualifies for a categorical exemption from CEQA pursuant to CEQA Guidelines section 153 32, “Infill Development Project.” A CEQA Notice of Exemption was issued for the Project and posted with the County Clerk’s Office in accordance with CEQA.

CONCLUSION
The Director of Development Services , in his capacity to approve Major Plot Plan permits, applied a standard condition of approval requiring the approved project to fund all on -going operational costs of providing municipal services based on existing City Council policy . Staff acknowledges that both the Government Code and Escondido Zoning Code allow the City to modify the condition at the discretion of the City Council, and the Planning Commission recommended that the City Council deny the request. As such, and because the Planning Commission is serving in an advisory role to City Council on this modification request, staff recommends the City Council deny the modification request and uphold the Director’s decisio n to approve the Project subject to all Conditions of Approval contained in the Conditional Letter of Approval (Attachment 1).

RESOLUTIONS
a. Resolution No. 2023-152, Denial of Modification (Exhibits A and B) b. Resolution No. 2023-153, Granting Modification (Exhibits A and B)

ATTACHMENTS
a. Plot Plan Conditional Letter of Approval (excerpted) - dated April 5, 2022 b. Applicant Request Letter
c. Planning Commission Staff Report (excerpted) - dated September 12, 2023

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Plot Plan Conditions of Approval (excerpted)
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Applicant Request
Letter
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RESOLUTION NO. 2023-152

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, DENYING THE REQUEST TO

MODIFY A MAJOR PLOT PLAN APPROVAL TO ELIMINATE

THE REQUIREMENT TO OFFSET COSTS ASSOCIATED WITH

FUNDING OF ONGOING MUNICIPAL SERVICES

WHEREAS, Vermont Escondido Apartments LLC (“Applicant”), filed a land use development application on May 16, 2019 and April 11, 2023 , Planning Case No. ’s ADM19-0092 and PL23 -0176, respectively, (“Application”), constituting a request for a Major Plot Plan for a 44-unit apartment complex, inclusive of a density bonus request which included four deed -restricted very -low-income units (“Project”), on a 1.05-acre site located at 1860, 1866, 1870 & 1896 S. Escondido Blvd. (Assessor’s Parcel Numbers 236-260-34-00, 236-260-35-00, 236-260-36-00, and 236 -260-37-00), in the South Centre City Specific Plan; and
WHEREAS, the subject property is all that real property described in Exhibit “A” which is attached hereto and made a part hereof by this reference as though full set forth herein (“Property”); and WHEREAS, the Project was approved by the Director of Development Services, on April 5, 2022, in accordance with the rules and regulations of the Escondido Zoning Code and the applicable procedures and time limits specified by the Permit Streamlining Act (Government Code section 65920 et seq.) and the California Environmental Quality Act (Public Resources Code section 21000 et seq.) (“CEQA”); and WHEREAS, pursuant to CEQA and CEQA Guidelines (Title 14 of California C ode of Regulations, section 15000 et. seq.) the City is the Lead Agency for the Project, as the public agency with the principal responsibility for approving the Project, and it was determined that the Project as a whole is categorically exempt from further review pursuant to CEQA Guidelines section 15332 (Class 32) – Infill Development Projects; and
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WHEREAS, the Planning Division studied the Application, performed necessary investigations, and the Director of Development Services approved the Major Plot Plan for the Project as depicted in the administrative approval and subject to all conditions of approval included in the administrative approval; and
WHEREAS, Applicant filed a request to modify the Project on April 11, 2023, in order to eliminate a condition of approval requiring the funding of ongoing operational costs of providing municipal services to the project; and
WHEREAS, no other aspect of the Major Plot Plan approval has been appealed or modified, and all other components of the Project have been approved and are not subject to an appeal or modification; and
WHEREAS, on September 12, 2023, the Planning Commission held a duly noticed public hearing as prescribed by law, at which time the Planning Commission received and considered the report and recommendation of the Planning Division and gave all persons a full opportunity to be heard and to present evidence and testimony, regarding the modification. Evidence was submitted to and considered by the Planning Commission, including, without limitation:
a. Written information and other material submitted by the Applicant; b. Oral testimony from City staff, interested parties and the public; c. The staff report, dated September 12, 202 3, with its attachments as well as City staff recommendation on the modification;
d. Additional information submitted during the public hearing; and WHEREAS, following the public hearing, the Planning Commission adopted Resolution No. 2023- 15, recommending that the City Council deny the requested Major Plot Plan modification; and 259
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WHEREAS, On November 15, 2023, the City Council held a duly noticed public hearing as prescribed by law. Evidence was submitted to and considered by the City Council, including without limitation:
a) written testimony from City staff, interested parties, and the public; b) oral testimony from City staff, interested parties and the public; c) the City Council staff report, dated November 15, 2023, with its attachmen ts as well as City staff recommendation on the request, which is incorporated herein by this reference as though fully set forth herein;
d) the Planning Commission’s recommendation; and
d) additional information submitted during the public hearing.

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 Findings of Fact attached hereto as Exhibit “B” are hereby made by this City Council, and represent the City Council’s careful consideration of the record. The findings of this City Council contained in Exhibit “B” shall be the final and determinative Findings of Fact related to this modification.

3. That upon consideration of the Findings, the staff report dated November 15, 2023 (a copy of which is on file in the Office of the City Clerk), public testimony presented at the meeting, and all other oral and written evidence regarding the Major Plot Plan, the City Council hereby denies the request to modify the Project approval to eliminate Condition of Approval, Planning Division II. General: #15.

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Exhibit “A”
Legal Description
Resolution No. 2023-152
Exhibit "A"

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Resolution No. 2023-152
Exhibit "A"

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EXHIBIT “B”

FINDINGS OF FACT
The City Council has reviewed the record, and makes the following findings for:
1) Denial of the Major Plot Plan modification to eliminate a condition of approval requiring funding of ongoing operational costs of providing municipal services required by the Project. 2) Modification
a. On September 23, 2020, following multiple public hearings, the City Council adopted a policy requiring all new residential development approved after May 13, 2020, to pay for their ongoing costs of providing municipal services.
b. Granting of the requested modification is contrary to the City Council adopted policy requiring future residential projects to fund all on-going operational costs of providing municipal services.

Resolution No. 2023-152
Exhibit "B"

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RESOLUTION NO. 2023-153

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, GRANTING A REQUEST TO

MODIFY A MAJOR PLOT PLAN APPROVAL TO ELIMINATE

THE REQUIREMENT TO OFFSET COSTS ASSOCIATED WITH

FUNDING OF ONGOING MUNICIPAL SERVICES

WHEREAS, Vermont Escondido Apartments LLC (“Applicant”), filed a land use development application on May 16, 2019 and April 11, 2023 , Planning Case No. ’s ADM19-0092 and PL23 -0176, respectively, (“Application”), constituting a request for a Major Plot Plan for a 44-unit apartment complex, inclusive of a density bonus request which included four deed -restricted very -low-income units (“Project”), on a 1.05-acre site located at 1860, 1866, 1870 & 1896 S. Escondido Blvd. (Assessor’s Parcel Numbers 236-260-34-00, 236-260-35-00, 236-260-36-00, and 236 -260-37-00), in the South Centre City Specific Plan; and
WHEREAS, the subject property is all that real property described in Exhibit “A” which is attached hereto and made a part hereof by this reference as though full set forth herein (“Property”); and WHEREAS, the Project was approved by the Director of Development Services, on April 5, 2022, in accordance with the rules and regulations of the Escondido Zoning Code and the applicable procedures and time limits specified by the Permit Streamlining Act (Government Code section 65920 et seq.) and the California Environmental Quality Act (Public Resources Code section 21000 et seq.) (“CEQA”); and WHEREAS, pursuant to CEQA and CEQA Guidelines (Title 14 of California C ode of Regulations, section 15000 et. seq.) the City is the Lead Agency for the Project, as the public agency with the principal responsibility for approving the Project, and it was determined that the Project as a whole is categorically exempt from further review pursuant to CEQA Guidelines section 15332 (Class 32) – Infill Development Projects; and
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WHEREAS, the Planning Division studied the Application, performed necessary investigations, and the Director of Development Services approved the Major Plot Plan for the Project as depicted in the administrative approval and subject to all conditions of approval included in the administrative approval; and
WHEREAS, Applicant filed a request to modify the Project on April 11, 2023, in order to eliminate a condition of approval requiring the funding of ongoing operational costs of providing municipal services to the project; and
WHEREAS, no other aspect of the Major Plot Plan approval has been appealed or modified, and all other components of the Project have been approved and are not subject to an appeal or modification; and
WHEREAS, on September 12, 2023, the Planning Commission held a duly noticed public hearing as prescribed by law, at which time the Planning Commission received and considered the report and recommendation of the Planning Division and gave all persons a full opportunity to be heard and to present evidence and testimony, regarding the modification. Evidence was submitted to and considered by the Planning Commission, including, without limitation:
a. Written information and other material submitted by the Applicant; b. Oral testimony from City staff, interested parties and the public; c. The staff report, dated September 12, 2023, with its attachments as well as City staff recommendation on the modification;
d. Additional information submitted during the public hearing; and WHEREAS, following the public hearing, the Planning Commission adopted Resolution No. 2023- 15, recommending that the City Council deny the requested Major Plot Plan modification; and 266
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WHEREAS, on November 15, 202 3, the City Council held a duly noticed public hearing as prescribed by law. Evidence was submitted to and considered by the City Council, including without limitation:
a) written testimony from City staff, interested parties, and the public; b) oral testimony from City staff, interested parties and the public; c) the City Council staff report, dated November 15, 2023, with its attachment s as well as City staff recommendation on the request, which is incorporated herein by this reference as though fully set forth herein;
d) the Planning Commission’s recommendation; and
d) additional information submitted during the public hearing.

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

1. That the foregoing recitations are true.

2. That the Findings of Fact attached hereto as Exhibit “B” are hereby made by this City Council, and represent the City Council’s careful consideration of the record. The findings of this City Council contained in Exhibit “B” shall be the final and determinative Findings of Fact related to this modification.

3. That upon consideration of the Findings, the staff report dated November 15, 2023 (a copy of which is on file in the Office of the City Clerk), public testimony presented at the meeting, and all other oral and written evidence regarding the Major Plot Plan, the City Council hereby grants the request to modify the Project approval to eliminate Condition of Approval, Planning Division II. General, #15.

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Exhibit “A”
Legal Description
Resolution No. 2023-153
Exhibit "A"

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Resolution No. 2023-153
Exhibit "A"

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EXHIBIT “B”

FINDINGS OF FACT
The City Council has reviewed the record, and makes the following findings for:
1) Granting the Major Plot Plan modification to eliminate a condition of approval requiring funding of ongoing operational costs of providing municipal services required by the Project. 2) Modification
a. On September 23, 2020, following multiple public hearings, the City Council adopted a policy requiring all new residential development approved after May 13, 2020, to pay for their ongoing costs of providing municipal services. However, the City’s required regional housing needs assessment (RHNA) identified a goal of an additional 9.607 housing units, 1,864 of which need to provide housing to very -low income individuals or families. The four deed-restricted units for very-low income households included in the project will help contribute to that goal. Add itional ongoing costs would negatively impact the ability to provide these deed-restricted units.
b. Removal of the Condition of Approval No. 15 would support the City Council adopted Housing Element policies promoting the development of very-low income deed-restricted housing units to meet the City’s RHNA goals, and removing the funding requirements would support the development of very-low income deed-restricted units.

Resolution No. 2023-153
Exhibit "B"

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STAFF REPORT

December 13, 2023
File Number 0810-20

SUBJECT

SPECIFIC PLAN AMENDMENT, MAJOR PLOT PLAN AND DENSITY BONUS FOR A 21-UNIT, MULTI-FAMILY RESIDENTIAL/MIXED-USE PROJECT - PHG20-0036

DEPARTMENT

Planning Division, Development Services Department

RECOMMENDATION

Request the City Council conduct a public hearing on the development proposal and take action on the recommendations of City staff and the Planning Commission as follows:

a) Introduce Ordinance No. 2023 -20 adopting an Addendum to the Final Negative Declaration adopted for the South Centre City Specific Plan, and approve an amendment to the South Centre City Specific Plan
b) Adopt Resolution No. 2023 -171 approving a Major Plot Plan and Density Bonus for a 21 -unit mixed-use project.

Staff Recommendation: Approval ( Development Services Department: Chris McKinney , Director of Development Services)

Presenter: Jay Paul, Senior Planner

PLANNING COMMISSION RECOMMENDATION
The Planning Commission considered the Project at its November 28, 2023 hearing, and the staff report is included as Attachment “1”. After deliberation, the Planning Commission voted 4-2-1 (Commissioners Paul and Speer voting no, with Commissioner Weiler recusing himself from the hearing) to recommend that the City Council approve the Project as conditioned with exception of one condition of approval. The Planning Commission recommends the City approve the applicant’s request for a financial incentive under Density Bonus Law to waive the condition regarding ongoing funding of municipal services . This requirement is identified as Condition of Approval General A.11 attached as Exhibit “D” to Resolution No. 2023-171. The Commissioners’ discussion primarily focused on the amount of parking the project would provide; how the tandem spaces would be allocated to the units, and ; the City’s requirement to allow certain incentives, concessions and waivers in accordance with Density Bonus Law. No members of the public spoke at the hearing , except for the Project applicant . City staff received o ne written communication and distributed the written communication to the Commissioners (Attachment “2”). The written commenter expressed concern regarding parking and traffic in the area.

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FISCAL ANALYSIS
Density bonus law (Government Code section 65915 et. seq.) and Article 67 of the Escondido Zoning Code (Density Bonus and Residential Incentives) are intended to encourage the development of affordable housing. This is accomplished through the allowance for an increase in residential density above what would typically be allowed for a property, and through the provision of incentives and concessions, waivers from development standards , and direct financ ial incentives. Specifically, incentives and concessions entail reductions in development or zoning code standards, or other regulatory incentive, that result in cost reductions to enable the project. Waivers entail reductions or modifications to development standards or the zoning code that would otherwise make construction of the project infeasible, and are separate from incentives and concessions . Separate from both incentives and concessions, and waivers are financial incentives. City Council may grant a direct financial incentive for a project but is not required to do so.

The percentage of affordable units and level of affordability dictate the number of incentives and concessions associated with a density bonus project, and entitles an applicant to certain waivers of development standards . As part of the project application, t he Applicant requests to eliminate the requirement to fund ongoing operational costs of providing municipal services required for the Project as a direct financial incentive.

Government Code section 95915(l) states that Density Bonus Law “…does not limit or require the provision of direct financial incentives for the housi ng development, including the provision of publicly owned land, by the city, county, or city and county, or the waiver of fees or dedication requirements.” Similarly, section 33 -1414(a)(2)(E) of the City of Escondido Municipal Code states that “the city co uncil may, but is not required to, provide direct financial incentives, including direct financial aid in the form of a loan or grant, the provision of publicly owned land, or the waiver of fees or dedication requirements.” Staff continues interpretation of this language to mean the City Council is not required under Density Bonus Law to waive fees or provide other direct financial incentives for a housing development. Further, only City Council retains authority to act on such request s per the City of Escondido Municipal Code and the current City Council adopted policy concerning the funding of municipal services by new development.

As such, the Planning Commission acts in an advisory role to City Council on this request to remove this condition of the Project. The condition cited above is consistent with existing City Council policy requiring all residential development to offset its impact on the general fund by providing an ongoing funding source to pay for public services demanded by a project. Because the condition is consistent with current City Council policy, and because neither the Government Code nor the City of Escondido Municipal Code require the City to provide direct financial assistance to a density bonus project, staff does not recommend the removal of said condition.

PROJECT DESCRIPTION
The Project includes an Amendment to the South Centre City Specific Plan to apply the mixed-use overlay to the Project site to allow for residential and commercial development (mixed -use) up to 30 dwelling units per acre and building height up to 45 feet. The request also includes a Major Plot Plan and Density 272
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Bonus for the development of a four-story building, ground-floor parking garage, up to 4,200 square feet of ground-floor commercial/flex space, and 21 multi-family residential units (18 market rate units and 3 affordable units). The Density Bonus would allow for an increase in allowable density but requires 3 of the units be restricted for “very low -income” tenants, along with certain incentives/concessions and waivers from development standards.

LOCATION
The 0.46-acre Project site is comprised of 2 parcels located on the northwest corner of S. Escondido Boulevard and W. Ninth Avenue, addressed at 892-849 S. Escondido Boulevard and 332 W. Ninth Avenue (APNs 336-371-14-00 and 336 -371-15-00). The location is depicted in Attachment “1” to the Planning Commission staff report.

ANALYSIS

1. General Plan / Zoning Consistency

The City’s General Plan land-use designation for the project site is Specific Planning Area (SPA 15) with an underlying zoning designation of Escondido Boulevard District and 9th Avenue Overlay. The 0.16- acre parcel fronting onto 9th Avenue contains the mixed -use overlay that allows for multi -family development up to 24 dwelling units per a cre. The larger 0.30 -acre parcel fronting onto South Escondido Boulevard is located within the Escondido Boulevard District (commercial district), but does not contain the overlay designation, and therefore does not permit multi -family or mixed -use development. However, based on the proposed Specific Plan Amendment to apply the mixed -use overlay district to the larger 0.30 -acre parcel, along with the combined size of the two parcels (0.46 total acres), the project site would accommodate up to 13 base units (parcel 1: 0.16 acres x 24 du/ac = 3.8 units; parcel 2: 0.30 acres x 30 du/ac = 9 units; 3.8 + 9.0 = 12.8 units rounded up to 13 units per Density Bonus Law calculations – yield fractions round up). The proposed project would include 15 percent of the base units (i.e., three) as very-low-income restricted units, entitling the Applicant to a 50 percent density bonus (i.e., 6.5 rounded up to 7) for a total density bonus allowance of 20 units, consistent with State Density Bonus law as described further below.

State Density Bonus law is codified in Government Code Section 65915 – 65918, and specifically states, “granting of a density bonus shall not require, or be interpreted, in and of itself, to require a general plan amendment, zone change, or o ther discretionary approval.” As such, regardless of density, the Project is consistent with the provisions of the General Plan as long as it complies with State Density Bonus law and Article 67 of the Escondido Zoning Code.

Allowable increases in density are based on a sliding scale that involves both the percentage of affordable units being provided, and the level of affordability of those units. Existing and proposed zoning for the subject parcels (up to 24 du/ac and 30 du/ac with mixed-use overlay zone designation) would allow a total of 13 base units; however, by deed restricting 15 percent of those units (amounting to three units) for very -low-income households, the Project is eligible for a 50 percent 273
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increase in allowable density (seven density bonus units), resulting in a total allowance of 20 units.

Further, Sec. 33 -1414(a), consistent with state law, permits for a project to request excess density bonus exceeding the entitled amount of density bonus denoted under Sec. 33-1313(b) as an incentive for a project. In this instance, the Project would use one of its three permitted incentives/concessions to receive an additional unit in excess of the permitted density bonus to allow for a total of 21 units.

Therefore, the Project is consistent with Article 67 of the EZC.

The South Centre City Specific Plan seeks to create quality housing through new and creative infill of single- and multi-family development to further housing choice and opportunity within the City. The Project would support the Specific Plan’s goal by providing an infill project that provides for a mix of market rate and affordable units. Further, the Project provides a mixed-use commercial component, retaining street -level commercial at important corners, such as the 9 th Ave. and Esco ndido Blvd. corner.

The City identified a number of properties within the South Centre City Specific Plan area where the conditions of existing uses are conducive to future redevelopment. Such conditions include large parking areas, older buildings, marginally operating businesses, nonconforming uses, and capacity for additional units. Overall, the properties in the South Centre City Specific Plan area are projected to accommodate 1,038 new units. As identified in the 2021 -2029 Housing Element, (Program 1.1: Sites Inventory and No Net Loss Monitoring) the City of Escondido has been allocated a Regional Housing Needs Assessment (“RHNA”) of 9,607 units (1,864 very low income; 1,249 low -income; 1,527 moderate-income, and 4,967 above-moderate income units). The proposed project would not result in the loss of any existing residential units and would result in three new very-low-income apartment units and 18 market rate units. However, the project site is not identified in the City’s General Plan Housing Element Suitable Sites Inventory for the 6th RHNA Planning Cycle. Because the provision of “no net loss” applies to housing located on any site listed in the City’s Housing Element, the City does not need to determine if this project or a decision related to this project would be subject to No Net Loss Law and its remedies.

2. Density Bonus and Residential Incentives:

A density bonus project proposing 15 percent of the base density units for very -low-income households is entitled to up to three incentives or concessions, which are defined in Government Code section 65915(k), in part, to include “[a] reduction in site development standards or a modification of zoning code requirements or architectural design requirements…. that results in identified and actual cost reductions….” Additionally, density bonus projects are entitled to waivers from development standards which would have the effect of physically precluding the construction of the proposed density bonus project. For reference, Article 67 of the Escondido Zoning Code can be found at the following link:

https://library.qcode.us/lib/escondido_ca/pub/municipal_code/item/chapter_33-article_67

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Based on Density Bonus Law, the Applicant requests and is entitled to the following incentives/concessions (max. three):

 An excess density bonus for one additional dwelling unit.  Increase in height for certain building elements up to 47 feet in height.  Reduction in parking (two residential spaces), allow tandem spaces (twelve spaces) and elimination of required commercial spaces.

And the following waivers (unlimited):
 Reduction in setbacks, that would not affect the public right-of-way, pedestrian or utility access, to allow certain encroachments into the front and street-side setbacks, including the overhang of architectural elements, upper-story element, and roof eaves.  Elimination of upper-story level step-backs (for second story and above)  Reduction in open space and tree planting requirements (min. 1 tree per unit)  Allow for tandem parking through the Plot Plan process in -lieu of the Planned Development process.

Staff has reviewed the requested waivers and determined that they would not create an adverse impact upon the health, safety or the physical environment Additional Request for Direct Financial Incentive:

The Applicant is also requesting that the City eliminate the requirement to fund ongoing operational costs of providing municipal services. As discussed in the Fiscal Analysis Section of this Staff Report, the City Council has the discretion to grant this request, but it is not required to do so.

3. Site Design:

a) Project Access, Circulation and Parking:

The project site fronts onto two public circulation element streets (South Escondido Boulevard and West 9th Avenue), along with a 20 -foot-wide public alley on the north. The Project design includes an internal ground -floor garage that would accommodate 27 parking spaces, trash facilities and other utilities. Twelve of the spaces are tandem spaces, that would be dedicated to select two -bedroom units. Access to the parking spaces would be provided from a driveway fronting 9th Avenue and the alley. The Project would include widening the alley an additional two-feet along the project frontage, and the intersection redesigned to include a bulb-out feature to enhance public safety and the intersection crosswalks. The Engineering Division indicated the bulb-out feature would not adversely affect circulation along South Escondido Boulevard and 9th Avenue, nor impact turn movements at the intersection, as conditioned.

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The Project requires a minimum of 29 residential spaces for the 21 units and 16 spaces for the 4,200 square foot commercial component. The Project would provide a total of 27 garage-level parking spaces, including one disabled space . The Applicant requests a reduction in parking of two required residential spaces and elimination of all the required commercial spaces. Although on-street parking may still be allowed along the project frontages, these spaces are open public spaces and are not specifically reserved for the Project. A section of the on-street parking may be posted for short -term parki ng to facilitate commercial delivery and moving vehicles, as determined by the Engineering Division through the final improvement plans. There is an existing recorded parking agreement between the subject site and the commercial property to the south (Petersons Donuts) to utilize up to 14 on-site parking spaces. However, these are not permanent spaces for the Project site as the agreement may be terminated if the land-use on the Peterson’s site changes to require additional on-site spaces to support the use.

b) Open Space and Landscaping:

A minimum of 300 square feet of open space is required per unit, which equates to 6,300 square feet of open space for the 21 -unit Project. The Project would provide a combination of private and common open space areas totaling 4,808 square feet. Open space areas/amenities include a central ground-floor courtyard, individual unit balconies, and a common second floor internal terrace that overlooks the central courtyard. In order to accommodate the Project’s site design and achieve the desired density, the Project proposes a 24 percent reduction in open space from 300 square feet per unit to 229 square feet per unit. Multi-family residential projects are required to provide a minimum of one tree per unit. However, due to the limited landscape area available for the higher-density project, the remaining available area would accommodate up to 9 street trees along the pr oject frontages within specifically designed planter wells, along with smaller landscape planters along the street frontages and within the central courtyard area. c) Architectural Design, Color/Materials and Unit Mix:

The Project consists of a four-story structure that includes one - and two-bedroom units. Unit sizes range from 1,119 square feet for the one -bedroom units, to 1,266 square feet for the two- bedroom units. Interior hallways/open terraces provide access to the units . Each unit includes private exterior -facing upper -story decks/balconies with metal railings. The building is approximately 47 feet in height to the top of certain roof elements . The Project utilizes a contemporary style of architecture with varying wall planes and rooflines, with flat and angled metal clad roofs and upper-story roof eyebrow-type overhangs. Exterior materials/colors include white primary stucco with light gray and yellow accent and trim colors ; a red brick veneer on ground-floor walls, and; vertical wood siding on select wall recesses. Exterior balconies located at the corner units facing 9 th Avenue include a decorative metal grill/screen. The ground floor includes an entry lobby and 4,200 square feet of unplanned commercial space with a ceiling height 276
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of approximately 15 feet and store-front type glass windows and doors. Project plans are included with this staff report as Exhibit “B” to draft City Council Resolution No. 2023-171.

4. Specific Plan Amendment –South Centre City Specific Plan

The 0.16-acre parcel fronting onto 9th Avenue includes the mixed-use overlay that allows for general mixed-use and multi-family development up to 24 dwelling units per acre, with a building height of two stories (up to 35 feet in height). The larger 0.30 -acre parcel fronting onto South Escondido Boulevard is located within the Escondido Boulevard District (commercial designation), but does not contain the overlay designation and does not permit residential development. The Applicant requests application of the overlay designation to the larger corner parcel along with an allowed density of up to 30 dwelling units per acre to facilitate the proposed 21 -unit mixed-use project. The proposed amendment would also modify the allowable height limits for projects (residential/commercial) in the mixed-use overlay of the Escondido Boulevard District. Specifically, the amendment would allow for up to 45 feet in height on the larger parcel through the expansion of the mixed -use overlay in order to accommodate the density. However, the two-story, 26-foot height limit would still apply to parcels not involved within this proposed amendment and outside of the mixed-use overlay. The amendment would require a revision to Table 5.2 (General Building Height, Setbacks and Cov erage Standards) included as Attachment “3” to the Staff Report and Exhibit “ B” to draft City Council Ordinance No. 2023-20.

ENVIRONMENTAL REVIEW
On March 21, 2018, the Escondido City Council adopted a Final Initial Study/Negative Declaration (IS/ND) for the South Centre City Specific Plan (City Case Nos. PHG15 -0003/ENV17-0005). Section 15164 of the State CEQA Guidelines states that an Addendum to a Negative Declaration shall be prepared “if some changes or additions are necessary, but none of the conditions described in Section 15162 calling for preparation of a subsequent Negative Declaration have occurred.” The proposed project is consistent with the adopted Final IS/ND. Specifically, none of the conditions defined in Sections 15162 and 15163 of the State CEQA Guidelines that would require preparation of a subsequent or supplemental Negative Declaration have been met. As detailed in the Addendum to the Final Negative Declaration prepared for this project, included as Exhibit “D” to Draft City Council Ordinance No. 2023-20, and the project materials, the City finds that, pursuant to Section 15162, no subsequent Negative Declaration would be required.

Because none of the conditions of Section 15162 of the State CEQA Guidelines occur and as the Addendum and the proposed project satisfy the requirements of Section 15168, an Addendum to the South Centr e City Specific Plan Final IS/ND is the appropriate form of environmental documentation required under CEQA for the proposed project. The Final Negative Declaration , Addendum and technical studies are available for review at the following link:
https://escondido.org/829-south-escondido-blvd-project
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CONCLUSION
The proposed Project is consistent with the General Plan and the South Centre City Specific Plan , as proposed to be amended , because it encourages higher density urban residential growth within the Escondido Boulevard District. The Project would further the Land Use and Community Form goals in Chapter II of the Escondido General Plan, including those related to community character and smart growth, as well as the Housing goals in Chapter IV of the General Plan, which include planning for sustainable growth and providing housing opportunities for all income groups and household types.

All land use development applications that consist of a Plot Plan, Density Bonus and Specific Plan Amendment are subject to design review and the final decision-maker is the City Council. The proposed project is consistent with the guiding principles for the South Centre City Specific Plan (as modified by Density Bonus incentives and concessions, and waivers) identified in the Land Use and Community Form Element of the Escondido General Plan because such principles accommodate the type of high -density urban development envisioned for the area. The proposed Project also provides for a well -designed, residential development that will be beneficial to its future residents and provide visual appeal in an area that is currently undergoing significant revitalization.

The Project as proposed will not have a significant effect on the environment, as designed and conditioned. The location, size, design, and operating characteristics of the proposed Project will not be incompatible with, or will adversely affect, or will be materially detrimental to adjacent land uses. The site is suitable for the type and intensity of use or development which is proposed. Both the Planning Commission and staff recommend the City Council adopt the Addendum to the Final Negative Declaration and approve the proposed Project . The Planning Commission recommend ed the City Council grant the direct financial incentive to waiver the City’s standards community facilities district condition as well.

ORDINANCES
A. Ordinance No. 2023-20
B. Ordinance No. 2023-20 Exhibit “A”
C. Ordinance No. 2023-20 Exhibit “B”
D. Ordinance No. 2023-20 Exhibit “C”
E. Ordinance No. 2023-20 Exhibit “D”

RESOLUTIONS
A. Resolution No. 2023-171
B. Resolution No. 2023-171
C. Resolution No. 2023-171 Exhibit “A”
D. Resolution No. 2023-171 Exhibit “B”
E. Resolution No. 2023-171 Exhibit “C”
F. Resolution No. 2023-171 Exhibit “D”

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ATTACHMENTS
A. Attachment “1” – November 28, 2023 Planning Commission staff report B. Attachment “2” – November 28, 2023 Planning Commission written correspondence C. Attachment “3” - Specific Plan Amendment Exhibits
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STAFF REPORT
DATE: 11/28/2023
PHG20-0036 – 829 S. Escondido Boulevard
PROJECT NUMBER / NAME: PHG20-0036 South Centre City Parkway Specific Plan Amendment and 21-unit Multi- Family Residential Project - Plot Plan and Density Bonus REQUEST: The Project includes an Amendment to the South Centre City Specific Plan to extend the mixed-use overlay to the Project site to allow for residential and commercial development (mixed-use) up to 30 dwelling units per acre and building height up to 45 feet. The request also includes a Major Plot Plan and Density Bonus for the development of a four-story building, ground-floor parking garage, up to 4,200 square feet of ground-floor commercial/flex space and 21 multi-family residential units (18 market rate units and 3 affordable units). The Density Bonus would allow for an increase in allowable density but requires 3 of the units to be restricted for “very low-income” tenants, along with certain incentives/concessions and waivers from development standards. The proposal also includes adoption of the environmental determination for the Project.

PROPERTY SIZE AND LOCATION: The 0.46-acre project
site is located on the northwest corner of S. Escondido Boulevard and W. Ninth Avenue, addressed at 829 – 849
S. Escondido Boulevard and 332 W. Ninth Avenue (APNs
233-371-14-00 and 233-371-15-00).

APPLICANT: 9th Avenue Escondido LLC
GENERAL PLAN / ZONING: South Centre City Parkway
Specific Plan / (S-P) Escondido Boulevard District
PRIMARY REPRESENTATIVE: Jim Whalen (J. Whalen
Associates, Inc.)
DISCRETIONARY ACTIONS REQUESTED: Specific Plan Amendment (SPA), Major Plot Plan and Density Bonus PREVIOUS ACTIONS: N/A
CEQA RECOMMENDATION: Recommend adoption of the Addendum to the Negative Declaration – CEQA Guidelines Section 15164
STAFF RECOMMENDATION: 1. Recommend approval of the SPA, Plot Plan and Density Bonus; 2. Recommend the City Council deny the waiver of the ongoing municipal funding condition.

REQUESTED ACTION: Approve Planning Commission Resolution No. 2023-23 CITY COUNCIL HEARING REQUIRED: _X_YES ___NO
REPORT APPROVALS: X Dare DeLano, Senior Deputy City Attorney X Veronica Morones, City Planner
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BACKGROUND
The 0.46-acre project site consists of two parcels (APNs 233-371-14-00 and 233-371-15-00) located at the northwest corner of South Escondido Boulevard and West 9th Avenue, and is bordered by an unnamed 20-foot-wide public alley on the north. The site is developed with four single-story commercial buildings and a paved parking lot with driveway access to the parking lot provided from 9th Avenue. The commercial structures are over 50 years old and were constructed between 1929 and 1964. A Historic Analysis concluded the buildings do not meet specific criteria to be considered significant historic resources or qualify for listing as Local Register structures/properties. All of the existing structures would be demolished in order to accommodate the project. The surrounding area generally consists of one - and two -story commercial uses along South Escondido Boulevard and West 9th Avenue interspersed with one- and two-story residential uses.

SUMMARY OF REQUEST
The Project applicant, 9th Avenue Escondido, LLC (“Applicant”) submitted an application for an Amendment to the South Center City Specific Plan (SPA 15), along with a Major Plot Plan and Density Bonus to construct a four-story, 21-unit multi-family residential mixed-use development with a density of 45 .6 dwelling units per acre (“Project”), as depicted on Exhibit E of draft Planning Commission Resolution No. 2023-23, which itself is included as Attachment 4 to this report. The design includes a mix of one -bedroom, and two-bedroom units, along with 27 garage -level parking spaces, and 4,200 square feet of ground-floor commercial space.

The project site consists of two parcels (0.46 -acres) with one located within the Escondido Boulevard District (0.3 acres) and the other within the 9th Avenue Overlay District (0.16 acres). The larger 0.3-acre parcel is located within the Escondido Boulevard commercial district (EB commercial) that does not permit residential development. The smaller 0.16-acre parcel includes a mixed -use overlay designation that allows residential mixed -use development up to 24 dwelling units per acre and a height of up to 35 feet. The Applicant requests an amendment to the South Centre City Specific Plan to extend the mixed-used overlay to the larger parcel in order to permit for 30 du/ac and amend the land-use development requirement to allow height of up to 45 feet to facilitate the proposed 21 -unit mixed-use development. Figure 1 below shows the existing Specific Plan mixed-use overlay in relation to the project site.

Figure 1: Existing Specific Plan Designation

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The proposed Major Plot Plan and Density Bonus plan includes a request for a 50 percent increase in density pursuant to Density Bonus Law that would allow up to 2 0 total units consisting of 13 base units and seven density bonus units (include s three units restrict ed as very -low-income). Article 67 (Density Bonus and Residential Incentives) of the Escondido Zoning Code (EZC), and State Density Bonus law, allow an increase in residential density for projects that restrict a percentage of those base units as affordable housing units. Density Bonus Law permits up to three incentives/concessions for the Project , and the Applicant can request other waivers of development standards that are necessary to a ccommodate the construction of the Project. The Applicant requests one additional dwelling unit, in excess of the density bonus allowance, in compliance with Section 33 -1414(a)(2)(C) of Article 67 (Density Bonus and Residential Incentive) for a total of 21 dwelling units for the Project. Additional information on the Applicant’s requested incentives/concessions and waivers are provided under Project Analysis of this report.

Typically, the Director of Development Services would act on the administrative Plot Plan and Density Bonus request, as outlined in Zoning Code Article 61, Division 8 (Plot Plans) and Article 67 (Density Bonus and Residential Incentives). However, the Applicant requests both a SPA and to waive the condition requiring ongoing municipal funding obligations, which both require ultimate decision by City Council . In this case, the Planning Commission provides a recommendation to the City Council due to the accompanying legislative action (Specific Plan Amendment) and waiver of fees . Therefore, the P lanning Commission ’s reviewing role is to make a recommendation to City Council for approval or denial of the Plot Plan, Specific Plan Amendment, and waiver of fees.

SUPPLEMENTAL DETAILS OF REQUEST

1. Property Size: 0.46 gross acres (2 parcels, 13,000 SF and 7,000 SF)

2. Number of Units: 21 apartment units (3 very-low-income units)*

3. Building Size: 39,856 Gross Square Feet (4 levels)

4. Commercial: 4,200 SF ground-level

Minimum Required Provided

5. Unit Size: N/A 1,010 SF – 1,266 SF

6. Unit Type: N/A 4 one bedroom, 17 two bedroom

7. Density: Up to 30 du/ac and 24 du/ac 45.6 du/ac (Density Bonus allowance)*

8. Lot Coverage/Floor Are Ratio: N/A 72% Lot Coverage/1.99 FAR

9. Building Height Up to 26 feet North of 11th Ave Up to 47 feet (Density Bonus request)*

10. Motor Vehicle Parking: 29 residential and 16 commercial 27 spaces (no commercial spaces)* 45 total required Up to 7 on-street for the commercial
use along the frontages

11. Setbacks: Per SP requirements Proposed
a. Front Yard: 14’ from curb face 15’ to main structure, 13’ to architectural pop out feature (SEB1)*
b. Rear Yard: 15’ first story, 8’ stepbacks 24’ west P/L at 2nd floor and above
c. Side Yard: 0’ (5’ if commercial adjacent 5’-2” to closed pt. of building (north P/L) to residential use) Rooftop overhang encroachment*
d. Street Side: 14’ from curb face 15’-4” to main structure, 13’-3” to architectural pop out feature (9th Ave)*

12. Open Space / Landscaping: 6,300 SF (300 SF per unit) 4,808 SF (Density Bonus Request)* 56 Item 3.

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13. Signage: Per Article 66 (Sign Ord) Per Article 66

14. Trash: 1 Trash Enclosure 1 Trash Enclosure

15. Heating and Ventilation: Screening required Mech Equipment located in well on roof
* Deviations proposed as part of Density Bonus request
1SEB: South Escondido Boulevard

PROJECT ANALYSIS

1. General Plan Conformance:

a. Land use and density consistency

The City’s General Plan land-use designation for the project site is Specific Planning Area (SPA 15) with an underlying zoning designation of Escondido Boulevard District and 9th Avenue Overlay. The 0.16- acre parcel fronting onto 9 th Avenue contains the mixed -use overlay that allows for multi -family development up to 24 dwelling units per acre . The larger 0.30-acre parcel fronting onto South Escondido Boulevard is located within the Escondido Boulevard District (commercial district), but does not contain the overlay designation , and therefore does not permit multi-family or mixed -use development. However, based on the proposed Specific Plan A mendment to apply the mixed -use overlay district to the larger 0.30-acre parcel and allow up to 30 dwelling units per acre, along with the combined size of the two parcels (0.46 total acres), the project site would accommodate up to 13 base units (parcel 1: 0.16 acres x 24 du/ac = 3.8 units; parcel 2: 0.30 acres x 30 du/ac = 9.0 units; 3.8 + 9.0 =

12.8 units rounded up to 13 units per Density Bonus calculations – yield fractions round up). The proposed project would include 15 percent of the base units (i.e., three) as very-low-income restricted units, entitling the Applicant to a 50 percent bonus (i.e., 6.5, rounded up to 7) for a total density bonus allowance of 20 units, consistent with State Density Bonus law as described further below.

State Density Bonus law is codified in Government Code Section 65915 – 65918, and specifically states, “granting of a density bonus shall not require, or be interpreted, in and of itself, to require a general plan amendment, zone change, or other discretionary approval.” As such, regardless of density, the Project is consistent with the provisions of the General Plan as long as it complies with State Density Bonus law and Article 67 of the Escondido Zoning Code.

Allowable increases in density are based on a sliding scale that involves both the percentage of affordable units being provided, and the level of affordability of those units. Existing and proposed zoning for the subject parcels (up to 24 du/ac and 30 du/ac with mixed-use overlay zone designation) would allow a total of 13 base units; however, by deed restricting 15 percent of those units (amounting to three units) for very -low-income households, the Project is eligible for a 50 percent increase in allowable density (seven density bonus units), resulting in a total allowance of 20 units. Further, Sec. 33-1414(a), consistent with state law, permits for a project to request excess density bonus exceeding the entitled amount of density bonus denoted under Sec. 33-1313(b) as an incentive for a project. In this instance, the Project would use one of its three permitted incentives/concessions to receive an additional unit in excess of the permitted density bonus to allow for a total of 21 units. Therefore, the Project is consistent with Article 67 of the EZC.

57 Item 3.

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The South Centre City Specific Plan seeks to create quality housing through new and creative infill of single- and multi-family development to further housing choice and opportunity within the City. The Project would support the Specific Plan’s goal by providing an infill project that provides for a mix of market rate and affordable units. Further, the Project provides a mixed -use commercial component, retaining street-level commercial at important corners, such as the 9th Ave. and Escondido Blvd. corner. b. Housing Element and “No Net Loss”

The City identified a number of properties within the South Centre City Parkway Specific Plan area where the conditions of existing uses are conducive to future redevelopment. Such conditions include large parking areas, older buildings, marginally operating businesses, nonconforming uses, and capacity for additional units. Overall, the properties in South Centre City Parkway Specific Plan area are projected to accommodate 1,038 new units. As identified in the 2021-2029 Housing Element, (Program 1.1: Sites Inventory and No Net Loss Monitoring ) the City of Escondido has been allocated a Regional Housing Needs Assessment (“RHNA”) of 9,607 units (1,864 very low income; 1,249 low-income; 1,527 moderate- income, and 4,967 above-moderate income units). The proposed project would not result in the loss of any existing residential units and would result in three new very-low-income apartment units and 18 market rate units. However, the project site is not identified in the City’s General Plan Housing Element Suitable Sites Inventory for the 6th RHNA Planning Cycle. Because the provision of “no net loss” applies to housing located on any site listed in the City’s Housing Element, the City does not need to determine if this project or a decision related to this project would be subject to No Net Loss Law and its remedies.

2. Density Bonus and Residential Incentives:

Article 67 of the Escondido Zoning Code is intended to encourage and incentivize the production of housing affordable to all segments of the population, consistent with State Density Bonus Law. A density bonus project is permitted to construct more units (up to 50 percent increase) than would otherwise be permitted on a particular property in exchange for restricting a percentage of those units for moderate-, low-, or very- low-income households. The increase in density is based on the percentage of units restricted and the income level a t which they are restricted for. A density bonus project proposing 15 percent of the base density units for very-low-income households is also entitled up to three incentives or concessions, which are defined in Government Code section 65915(k), in part, to include “[a] reduction in site development standards or a modification of zoning code requirements or architectural design requirements …. that results in ident ified and actual cost reductions….” Additionally, density bonus projects are entitled to waivers from development standards which would have the effect of physically precluding the construction of the proposed density bonus project. For reference, Article 67 of the Escondido Zoning Code can be found at the following link:
https://library.qcode.us/lib/escondido_ca/pub/municipal_code/item/chapter_33-article_67

Based on Density Bonus Law, the Applicant requests and is entitled to the following incentives/concessions (three total):

 An excess density bonus for one additional dwelling unit.  Increase in height for certain building elements up to 47 feet in height.  Reduction in parking (two residential spaces) and elimination of required commercial spaces.

And the following waivers (unlimited):
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 Reduction in setbacks, that would not affect the public right-of-way, pedestrian or utility access, to allow certain encroachments into the front and street -side setbacks, including the overhang of architectural elements, upper-story element, and roof eaves.  Elimination of upper-story level step-backs (for second story and above).  Reduction in open space and tree planting requirements (min. 1 tree per unit).  Allow for tandem parking through the Plot Plan process in -lieu of the Planned Development process.

Staff has reviewed the requested waivers and determined that they would not create an adverse impact upon the health, safety or the physical environment.

Additional Request for Direct Financial Incentive:

The Applicant is also requesting that the City eliminate the requirement to fund ongoing operational costs of providing municipal services. As discussed in the F iscal Analysis Section of this Staff Report, the City Council has the discretion to grant this request, but it is not required to do so.

3. Climate Action Plan Consistency:

The Applicant prepared and submitted a Climate Action Plan (CAP) Checklist, and is screened out of additional Greenhouse Gas Analysis based on the project type. Projects screened out by the CAP Checklist are assumed to have a less than significant impact on GHG emissions. The screening threshold for multi - family uses is 55 units, and for mixed-use project is less than 36 single -family equivalent units (SFE). The Project only proposes 21 multi-family units and 4,200 square feet of commercial space for a total SFE of

22.26 SFE. As such, the Project has been determined to be consistent with the Climate Action Plan.

4. Site Design:

a) Project Access, Circulation and Parking:

The project site fronts onto two public circulation element streets (South Escondido Boulevard and West 9th Avenue), along with a 20-foot-wide public alley on the north. The Project design includes an internal ground -floor garage that would accommodate 27 parking spaces, trash facilities and other utilities. Twelve of the spaces are tandem spaces , that would be dedicated to select two -bedroom units. Access to the parking spaces would be provided from a driveway fronting 9 th Avenue and the alley. The Project would include widening the alley an additional two-feet along the project frontage, and the intersection redesigned to include a bulb -out feature to enhance public safety and the intersection crosswalks. The Engineering Division indicated the bulb -out feature would not adversely affect circulation along South Escondido Boulevard and 9th Avenue, nor impact turn movements at the intersection, as conditioned.

The Project requires a minimum of 29 residential spaces for the 21 units and 16 spaces for the 4,200 square foot commercial component . The Project would provide a total of 27 garage -level parking spaces, including one disabled space . The Applicant requests a reduction in parking of two required residential spaces and elimination of all the required commercial spaces. Although on-street parking 59 Item 3.

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may still be allowed along the project f rontages, these spaces are open public spaces and ar e not specifically reserved for the Project. A section of the on -street parking may be posted for short -term parking to facilitate commercial delivery and moving vehicles, a s determined by the Engineering Division through the final improvement plans. There is an existing recorded parking agreement between the subject site and the commercial property to the south (Petersons Donuts) to utilize up to 14 on-site parking spaces. However, these are not permanent spaces for the Project site as the agreement may be terminated if the land-use on the Peterson’s site changes to require additional on- site spaces to support the use.

b) Open Space and Landscaping:

A minimum of 300 square feet of open space is required per unit, which equates to 6,300 square feet of open space for the 21-unit Project. The Project would provide a combination of private and common open space areas totaling 4,808 square feet. Open space areas /amenities include a central ground - floor courtyard, individual unit balconie s, and a common second floor internal terrace that overlooks the central courtyard. In order to accommodate the Project’s site design and achieve the desired density, the Project proposes a 24 percent reduction in open space from 300 square feet per unit to 229 square feet per unit. Multi-family residential projects are required to provide a minimum of one tree per unit. However, due to the limited landscape area available for the higher-density project, the remaining available area would accommodate up to 9 street trees along the project frontages within specifically designed planter wells, along with smaller landscape planters along the street frontages and within the central courtyard area.
c) Architectural Design, Color/Materials and Unit Mix:

The Project consists of a four-story structure that includes one - and two-bedroom units. Unit sizes range from 1,119 square feet for the one -bedroom units, to 1,266 square feet for the two -bedroom units. Interior hallways/open terraces provide access to the units. Each unit includes private exterior- facing upper-story decks/balconies with metal railings. The building is approximately 47 feet in height to the top of certain roof elements . The Project utilizes a contemporary style of architecture with varying wall planes and rooflines, with flat and angled metal clad roofs and upper-story roof eyebrow- type overhangs. Exterior materials/colors include white primary stucco with light gray and yellow accent and trim colors; a red brick veneer on ground-floor walls, and; vertical wood siding on select wall recesses. Exterior balconies located at the corner units facing 9th Avenue include a decorative metal grill/screen. The ground floor includes an entry lobby and 4,200 square feet of unplanned commercial space with a ceiling height of approximately 15 feet and store-front type glass windows and doors.

Project plans are included with this staff report as Exhibit “E” to draft Planning Commission Resolution No. 2023-23.

5. Specific Plan Amendment –South Centre City Specific Plan

The City’s General Plan land-use designation for the project site is Specific Planning Area (SPA 15) with an underlying zoning designation of Escondido Boulevard District and 9th Avenue Overlay. The 0.16-acre parcel 60 Item 3.

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fronting onto 9th Avenue includes the mixed-use overlay that allows for general mixed-use and multi-family development up to 24 dwelling units per acre, with a building height of two stories (up to 26 feet in height).

The larger 0.30-acre parcel fronting onto South Escondido Boulevard is also located within the Escondido Boulevard District (commercial designation), but does not contain the overlay designation and does not permit residential development (refer to Figure 1). The Applicant is requesting that the mixed-use overlay designation be applied to the larger corner parcel to facilitate , along with an allowed density of up to 30 dwelling units per acre, the proposed 21 -unit mixed-use project. The proposed amendment would also modify the allowable height limits for projects (residential/commercial) in the mixed -use overlay of the Escondido Boulevard District. Specifically, the amendment would allow for up to 45 feet in height on the larger parcel through the expansion of the mixed-use overlay in order to accommodate the desired density.

However, the two-story, 26-foot height limit would still apply to parcels not involved within this proposed amendment and located outside of the mixed -use overlay. The amendment would require a revision to Table 5.2 (General Building Height, Setbacks and Coverage Standards) included as Attachment 3 to the Staff Report and Exhibit “D” to draft Planning Commission Resolution No. 2023-23.

FISCAL ANALYSIS
Density bonus law (Government Code section 65915 et. seq.) and Article 67 of the Escondido Zoning Code (Density Bonus and Residential Incentives) are intended to encourage the development of affordable housing. This is accomplished through the allowance for an increase in residential density above what would typically be allowed for a property, and through the provision of incentives and waivers from development standards that make construction of the project infeasible.

The percentage of affordable units and level of affordability dictates the number of incentives and concessions associated with a density bonus project, and entitles an applicant to certain waivers of development standards. The Applicant requests to eliminate the requirement to fund ongoing operational costs of providing municipal services required for the Project as an incentive . This requirement is identified as Condition of Approval General A.11 attached as Exhibit “F” of Resolution No. 2023-23.

Government Code section 95915(l) states that Density Bonus Law “…does not limit or require the provision of direct financial incentives for the housing development, including the provision of publicly owned land, by the city, county, or city and county, or the waiver of fees or dedication requirements.” Similarly, section 33-1414(a)(2)(E) of the City of Escondido Municipal Code states that “the city council may, but is not required to, provide direct financial incentives, including direct financial aid in the form of a loan or grant, the provision of publicly owned land, or the waiver of fees or dedicatio n requirements.” Staff has consistently interpreted this to mean that the City is not required under Density Bonus Law to waive fees or provide other direct financial incentives for a housing development. Further, staff does not have the authority to do so under the City of Escondido Municipal Code or the current City Council adopted policy concerning the funding of municipal services by new development.

The requirement to fund all on-going operational costs of providing municipal services is a policy established by City Council. City staff or the Planning Commission does not retain decision-making authority to waive Council policy.

As such, the Planning Commission is acting in an advisory role to City Council on this request to remove this condition of th e Project. The condition cited above is consistent with existing City Council policy requiring all residential development to offset its impact on the general fund by providing an ongoing funding source to pay for public services demanded by a project. Because the condition is consistent with current City Council policy, and 61 Item 3.

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because neither the Government Code nor the City of Escondido Municipal Code require the City to provide direct financial assistance to a density bonus project, staff does not support the removal of said condition.

ENVIRONMENTIAL ANALYSIS
On March 21, 2018, the Escondido City Council adopted a Final Initial Study/Negative Declaration (IS/ND) for the South Centre City Specific Plan ( City Case Nos. PHG15-0003/ENV17-0005). Section 1 5164 of the State CEQA Guidelines states that an Addendum to a Negative Declaration shall be prepared “if some changes or additions are necessary, but none of the conditions described in Section 15162 calling for preparation of a subsequent Negative Declaration have occurred.” The proposed project is consistent with the adopted Final IS/ND. Specifically, none of the conditions defined in Sections 15162 and 15163 of the State CEQA Guidelines that would require preparation of a subsequent or supplemental Negative Declaration have been met. As detailed in the Addendum to the Final IS/ND prepared for th e Project, included as Attachment 2 to the staff report and Exhibit “ B” to Draft Planning Commission Resolution No. 2023-23, and the project materials, the Cit y finds that, pursuant to Section 15162, no subsequent Negative Declaration would be required. Because none of the conditions of Section 15162 of the State CEQA Guidelines occur and as the Addendum and the proposed Project satisfy the requirements of Section 15168, an Addendum to the South Centre City Specific Plan Final IS/ND is the appropriate form of environmental documentation required under CEQA for the proposed project.

PUBLIC INPUT
Staff received one comment fr om the public regarding an error in the public notice. The public hearing notice included the correct address, Assessor’s Parcel Numbers , and map/graphic identifying the proposed project site.

However, the notice indicated the project site is located on the southwest corner rather than the northwest corner.

The notice was correctly mailed to surrounding property owners, in accordance with City requirements, published in the newspaper, and two public hearing signs physically posted on the site. The staff report and public agenda includes the correct project coordinates. Therefore, this error did not adversely affect the public noti cing of the project and future hearing notices will be corrected appropriately.

CONCLUSION AND RECOMMENDATION

1. The proposed P roject is consistent with the General Plan and the South Centre City Specific Plan because it encourages higher density urban residential growth within the Escondido Boulevard District. The Project would further the Land Use and Community Form goals in Ch apter II of the Escondido General Plan, including those related to community character and smart growth, as well as the Housing goals in Chapter IV of the General Plan, which include planning for sustainable growth and providing housing opportunities for all income groups and household types.

2. All land use development applications that consist of a Plot Plan, Density Bonus and Specific Plan Amendment are subject to design review and the final decision-maker is the City Council. The proposed Project is consistent with the guiding principles for the South Centre City Specific Plan (as modified by Density Bonus incentives, concessions and waivers) identified in the Land Use and Community Form Element of the Escondido General Plan because such principles accommodate the type of high -density urban development envisioned for the area. The proposed Project also provides for a well -designed, residential development that will be beneficial to its future residents and provide visual appeal in an area that is currently undergoing significant revitalization.

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3. Staff recommends that the Planning Commission adopt Resolution 202 3-23, recom mending that the City Council approve the proposed Plot Plan and Density Bonus, and Specific Plan Amendment, as described in this staff report and as detailed in Exhibits “A” through “F” to Draft Planning Commission Resolution No. 2023-23.

4. Consistent with City Council policy, Condition of Approval A.11 is added to the project approval, requiring the Project to fund all on -going operational costs of providing municipal services. Because the condition is consistent with current City Council policy, and because neither the Government Code nor the City of Escondido Municipal Code require the City to provide direct financial assistance to a density bonus project, staff does not support the removal of said condition.

ATTACHMENTS

1. Location Map/Aerial

2. Draft Addendum to the Final Initial Study/Negative Declaration

3. Specific Plan Amendment

4. Draft Planning Commission Resolution No. 2023- 23 including Exhibits A, B, C, D, E, and F 63 Item 3.

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ATTACHMENT 1
Project Location
APNs 233-371-14 and 233-271-15

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ATTACHMENT 2
Addendum
Due to the number of pages of Exhibit “B,” the following link has been provided to review the documents electronically on the City’s web site:

https://escondido.org/829-south-escondido-blvd-project

The link includes the following:

Final Initial Study/Negative Declaration (“IS/ND”) for the South Centre City Specific Plan (ENV17-0005) and Addendum to the IS/ND

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ATTACHMENT 3
Proposed Specific Plan Amendment
Exhibits to Modify (add the mixed-use overlay to APN 233-371-15-00 located within the Escondido Boulevard District):

1. General Map Exhibit, Section 1.3 (Chapter 1, page 4)

2. South Centre City Specific Plan, Section 3.1 (Chapter 3, page 2 and page 4) and all applicable exhibits within Ch. 3 corresponding to outside districts for reference/consistency

3. Northern section of the Area, Southern section of the Area, Section 4.1 - Figure 4.1 (Chapter 4, page 2)

4. General Map Exhibit, Section 7.2 - Figure 7-2 (Chapter 7, page 4) Add Mixed-Use Overlay to APN
233-371-15 to allow up to 30 du/ac
and 45-foot height limit.
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The Escondido Boulevard, EB Commercial height remains at 26-feet/2-stories for commercial only projects and 45-feet for parcels specifically allowed with this Permit.

Proposed text amendments to the Tables shown in red strikethrough and bold/underline. 67 Item 3.

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Planning Commission
Hearing Date: November 28, 2023
Effective Date: December 11, 2023

PLANNING COMMISSION RESOLUTION NO. 2023-23

A RESOLUTION OF THE PLANNING COMMISSION

OF THE CITY OF ESCONDIDO, CALIFORNIA ,

RECOMMENDING CITY COUNCIL APPROVAL OF A

SPECIFIC PLAN AMENDMENT, MAJOR PLOT PLAN
AND DENSITY BONUS FOR A PROPOSED 21 -UNIT

RESIDENTIAL PROJECT WITHIN THE SOUTH

CENTRE CITY SPECIFIC PLANNING AREA

APPLICANT: 9th Avenue Escondido, LLC

CASE NOs: PHG20-0036

WHEREAS, 9th Avenue Escondido , LLC., (“Applicant”), filed a land use development application, Planning Case No. PHG20 -0036 (“Application”), constituting a request for an Amendment to the South Centre City Specific Plan (Escondido Boulevard District); Major Plot Plan and Density Bonus for 21 multiple -family residential units Project”), on approximately 0.46 acres generally located on the northwest corner of South Escondido Boulevard and West Ninth Avenue, addressed at 829 – 849 S. Escondido Boulevard and 332 W. Ninth Avenue (Assessor’s Parcel Numbers 233 -371-14-00 and 233-371-15-00); and
WHEREAS, the subject property is located within the South Centre City Specific Plan (SPA 15) and is all that real property described in Exhibit " A," which is attached hereto and made a part hereof by this reference as though fully set forth herein (“Property”); and
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WHEREAS, the A pplication was submitted to, and processed by, the Planning Division of the Development Services Department in accordance with the rules and regulations of the Escondido Zoning Code and the applicable procedures and time limits specified by the Permit Streamlining Act (Government Code section 65920 et seq.) and the California Environmental Quality Act (Public Resources Code section 21000 et seq.) (“CEQA”); and
WHEREAS, pursuant to CEQA and the CEQA Guidelines (Title 14 of California Code of Regulations, Section 15000 et. seq.), the City is the Lead Agency for the Project, as the public agency with the principal responsibility for approving the proposed Project ; and
WHEREAS, the application was assessed in conformance with the California Environmental Quality Act and the City Council adopted a Final Negative Declaration (City File No. ER17-0005) for the South Centre City Specific Plan (SPA 15). In accordance with the California Environmental Quality Act (CEQA) Section 15164, an Addendum to the adopted Final Negative Declaration was prepared to address the proposed project and project-related impacts.

WHEREAS, City staff provided public notice of the application in accordance with City and State public noticing requirements; and
WHEREAS, on November 28, 2023, the Planning Commission held a duly noticed public hearing as prescribed by law, at which time the Planning Commission received and considered the reports and recommendation of the Planning Division and gave all persons full opportunity to be heard and to present evidence and testimony regarding the 69 Item 3.

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Project. Evidence was submitted to and considered by the Planning Commission, including, without limitation:
a. Written information including plans, studies, written and graphical information, and other material, submitted by the Applicant;
b. Oral testimony from City staff, interested parties, and the public; c. The staff report, dated November 28, 2023, with its attachments as well as City staff’s recommendation on the Project, which is incorporated herein as though fully set forth herein; and
d. Additional information submitted during the public hearing; and WHEREAS, the public hearing before the Planning Commission was conducted in all respects as required by the Escondido Municipal Code and the rules of this Planning Commission.

NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Escondido that:

1. The above recitations are true and correct.

2. The Planning Commission certifies that is has reviewed and considered the Final Negative Declaration and Addendum, provided as Exhibit “B,” which is attached hereto and made a part hereof by this reference a s though fully set forth herein , and determined that it is complete and adequate for this project, and there are no significant environmental effects associated with the proposed project. After consideration of the Addendum and in conjunction with making specific findings, the Planning Commission hereby recommends that the City Council adopt the Addendum to the adopted Negative Declaration in accordance with the requirements of CEQA. 70 Item 3.

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3. The Findings of this Resolution provide environmental determinations required under Section 15091 of the CEQA Guidelines for the Project.

4. After consideration of all evidence presented, and studies and investigations made by the Planning Commission and on its behalf, the Planning Commission makes the substantive findin gs and determinations detailed in Exhibit “C,” which is attached hereto and made a part hereof by this reference as though fully set forth herein, relating to the information that has been considered . In accordance with the Findings of Fact and Factors to be Considered and the foregoing, the Planning Commission reached a recommendation on the matter as hereinafter set forth.

5. Considering the Final Negative Declaration, Addendum, CEQA Findings, Project Findings of Fact and Factors to be Considered, and applicable law, the Planning Commission hereby recommends th at the City Council approve the amendment to the Specific Plan map and te xt a s shown in Exhibit “ D” hereto; and Major Plot Plan and Density Bonus shown on the Project plans attached as Exhibit “E” hereto, and subject to each and all of the conditions thereinafter set forth in Exhibit “ F,” hereto. The Planning Commission expressly declares that it would not have made a recommendation to approve this Application except upon and subject to each and all of said conditions, each and all of which shall run with the land and be binding upon the Applicant, the owner, and all subsequent owners of the Property, and all persons who use the Property for the use permitted hereby.

BE IT FURTHER RESOLVED that, pursuant to Government Code section 66020(d)(1):
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1. NOTICE IS HEREBY GIVEN that the Project is subject to dedications, reservations, and exactions, as specified in the Conditions of Approval. The Project is subject to certain fees described in the City of Escondido’s Development Fee Inventory on file in both the Community Development and Public Works Departments. The Applicant shall be required to pay all development fees of the City then in effec t at the time and in such amounts as may prevail when building permits are issued. It is the City’s intent that the costs representing future development’s share of public facilities and capital improvements be imposed to ensure that new development pays the capital costs associated with growth. The Applicant is advised to review the Planned Fee Updates portion of the web page, www.escondido.org, and regularly monitor and/or review fee - related information to plan for the costs associated with undertaking the Project.

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PASSED, ADOPTED, AND APPROVED by a majority vote of the Planning Commission of the City of Escondido, California, at a regular meeting held on the 28th day of November, 2023, by the following vote, to wit:

AYES: COMMISSIONERS:

NOES: COMMISSIONERS:

ABSTAINED: COMMISSIONERS:

ABSENT: COMMISSIONERS:

______________________________
Rick Paul, Chair
Escondido Planning Commission
ATTEST:

______________________________
Veronica Morones, Secretary of the
Escondido Planning Commission

I hereby certify that the foregoing Resolution was passed at the time and by the vote above stated.

_____________________________
Alexander Rangel, Minutes Clerk
Escondido Planning Commission

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EXHIBIT “A”
Legal Description

Lots 6, 7 and 8 in Block 136, in the City of Escondido, County of San Diego, State of California, According to Map Thereof No. 336, filed in the Office of the County Recorder of San Diego County, July 10, 1886.

APNs 233-371-14-00 and 233-371-15-00

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Exhibit B
Addendum
Due to the number of pages of Exhibit “B,” the following link has been provided to review the documents electronically on the City’s web site:
https://escondido.org/829-south-escondido-blvd-project
The link includes the following:

Final Initial Study/Negative Declaration (“IS/ND”) for the South Centre City Specific Plan (ENV17-0005) and Addendum to the IS/ND
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EXHIBIT “C”

FACTORS TO BE CONSIDERED / FINDINGS OF FACT
Resolution No. 2023-23

PLANNING CASE NUMBER: PHG20-0036

Environmental Determinations:

1. Pursuant to the California Environmental Quality Act, ( "CEQA"), Public Resources Code section 21000 et. seq.), and its implementing regulations (the State CEQA Guidelines), Article 14 of the California Code of Regulations section 15000 et. seq., the City of Escondido (“City”) is the Lead Agency for the project (“Project”), as the public agency with the principal responsibility for approving the Project.

2. The City Council adopted a Final Initial Study/Negative Declaration (IS/ND), (City Case No. ENV17- 0005) in 2018 for the South Centre City Specific Plan (Resolution No. 2018-20).

3. Section 15164 of the State CEQA Guidelines states that an Addendum to a Negative Declaration shall be prepared “if some changes or additions are necessary, but none of the conditions described in Section 15162 calling for preparation of a subsequent Negative Declaration have occurred.” The proposed project is consistent with the adopted Final IS /ND. Specifically, none of the conditions defined in Sections 15162 and 15163 of the State CEQA Guidelines that would require preparation of a subsequent or supplemental Negative Declaration have been met.

4. As detailed in the Addendum and the project materials, the City finds that, pursuant to Section 15162, no subsequent Negative Declaration would be required. Because none of the conditions of Section 15162 of the State CEQA Guidelines occur and as the Addendum and the proposed project satisfy the requirements of Section 15168, an Addendum to the South Centre City Parkway S pecific Plan Final IS/ND is the appropriate form of environmental documentation under CEQA for the proposed project.

Specific Plan Amendment Determinations:

1. The public health, safety and welfare would not be adversely affected by the proposed amendment to the South Centre City Specific Plan because the amendment would facilitate a proposed Project that is well-integrated with its surroundings near residentially and commercially developed properties.

Adequate parking, access, on -site circulation, utilities, landscaping and open space would be provided (as detailed in the staff report). The Project would not detrimentally impact levels of service on area roadways, would not unduly burden public services in the area, and would be consistent with the transit-oriented development opportunities envisioned for the project area.

2. The project site involved is suitable for the uses permitted by the mixed -use overlay because the amendment would facilitate a proposed Project that is well -integrated with its surroundings near residentially and commercially developed properties. Adequate parking, access, on-site circulation, 76 Item 3.

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utilities, landscaping and open space would be provided (as detailed in the staff report). Further, Project would assist in the implementation of the vision and goals identified in the Specific Plan to provide “Quality Housing” with new and creative infill multi-family development helps support housing choice and opportunity.

3. The proposed amendment to the South Centre City Specific Plan would not be detrimental to surrounding properties because it would assist in the implementation of the vision and goals identified in the Specific Plan to provide “Quality Housing” with new and creative infill multi-family development helps support housi ng choice and opportunity. The proposed mixed -use overall designation also allows for commercial opportunities to preserve and enhance commercial opportunities as key commercial nodes. The Project’s proposed street alignments, grades and widths; drainage and sanitary facilities and utilities, including alignments and grades thereof; location and size of all required easements and rights-of-way; unit configuration; traffic and emergency access; grading; and open space and recreational amenities were all re viewed for compliance with relevant City policies and codes, and State Density Bonus statues.

4. The proposed amendment to the South Centre City Specific Plan would be consistent with the General Plan because the proposed infill residential Project would b e in conformance with General Plan Housing Goals and Policies to plan for quality, managed, and sustainable growth, and provide a range of housing opportunities for all income groups and populations with special needs, and which encourage a compact, effici ent urban form that promotes transit, supports nearby commercial establishments and takes advantage of infrastructure improvements installed to accommodate their intended intensities. The Project would not detrimentally impact levels of services on area roadways nor result in adverse impacts to public services and infrastructure , or Quality of Life Standards .

Further, the amendment would retain the General Plan vision for Specific Plan Area # 15 that promotes “Quality Housing” as well as to preserve commercial opportunities as key commercial nodes as noted above.

5. Specific plan amendments must comply with the scope and authority of section 65450 to 65457 of the California Government Code. The Planning Commission find the proposed Specific Plan Amendment has been completed in compliance with the law.

Plot Plan Determinations:

1. With the approval of the amendment to the Escondido Boulevard District to include mix-use residential development within the District through the expansion of the mixed-use overlay, the proposed 21-unit mixed-use Density Bonus project is a permitted use in the zone in which it is located. The proposed infill residential Project would be in conformance with General Plan Housing Goals and Policies to plan for quality, managed, and sustainable growth, and provide a range of housing opportunities for all income groups and populations with special needs, and which encourage a compact, efficient urban form that promotes transit, supports nearby commercial establishments and takes advantag e of infrastructure improvements installed to accommodate their intended intensities.

2. The Plot Plan is granted subject to such conditions as deemed necessary to meet the standards of the use and zone in which it is located and to comply with applicable design standards, as detailed in Exhibit G of Resolution No. 2023-23.

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3. The Plot Plan is granted subject to such additional conditions as deemed necessary and desirable to preserve the public health, safety and general welfare , as detailed in Exhibit G of R esolution No. 2023-23.

Density Bonus Determinations:

1. The requested concessions and waivers would not create an adverse impact upon the health, safety or the physical environment in that the increase in height and additional one unit would allow for increased densities that work to accommodate the City of Escondido’s Regional Housing Needs Allocation of 9,607 units within the identified Specific Plan area. The reduction in parking would still yield parking spaces on site for the residential use, and result in a waiver to the process for tandem spaces, which streamlines the housing process.
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Exhibit D
Proposed Specific Plan Amendment
Exhibits to Modify (add the mixed-use overlay to APN 233-371-15-00 located within the Escondido Boulevard District):

1. General Map Exhibit, Section 1.3 (Chapter 1, page 4)

2. South Centre City Specific Plan, Section 3.1 (Chapter 3, page 2 and page 4) and all applicable exhibits within Ch. 3 corresponding to outside districts for reference/consistency

3. Northern section of the Area, Southern section of the Area, Section 4.1 - Figure 4.1 (Chapter 4, page 2)

4. General Map Exhibit, Section 7.2 - Figure 7-2 (Chapter 7, page 4) Add Mixed-Use Overlay to APN
233-371-15 to allow up to 30 du/ac
and 45-foot height limit.
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The Escondido Boulevard, EB Commercial height remains at 26-feet/2-stories for commercial only projects and 45-feet for parcels specifically allowed with this Permit.

Proposed text amendments to the Tables shown in red strikethrough and bold/underline. 80 Item 3.

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EXHIBIT “E”
Plans
Resolution No. 2023-23

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EXHIBIT “F”

CONDITIONS OF APPROVAL
Planning Case Number: PHG20-0036

This Project is conditionally approved as set forth on the application received by the City of Escondido on August 6, 2022 , and the P roject drawings consisting of Civil Plans/Grading, Sections, Site Plans, Floor Plans, Architectural Elevations, Landscape Plans and Colored Elevations; all designated as recommended for approval on November 28, 2023, and shall not be altered without express authorization by the Development Services Department.

For the purpose of these conditions, the term “Applicant” shall also include the Project proponent, owner, permittee, or its successor(s) in interest, as may be applicable.

A. General:

1. Acceptance of Permit. Should the Applicant fail to file a timely and valid appeal of this Permit within the applicable appeal period, such inaction by the Applicant shall be deemed to constitute all of the following on behalf of the Applicant:

a. Acceptance of the Permit by the Applicant; and

b. Agreement by the Applicant to be bound by, to comply with, and to do all things required of or by the Applicant pursuant to all of the terms, provisions, and conditions of this Project Permit or other approval and the provisions of the Escondido Munic ipal Code or Zoning Code applicable to such Permit.

2. Permit Expiration. The Permit shall expire 24 months from the effective date of City Council approval of the Plot Plan and Density Bonus unless additional time is granted pursuant to Zoning Code Article 61, Division 8 (Plot Plans).

3. Certification. The Director of Development Services, or his/her designee, is authorized and directed to make, or require the Applicant to make, all corrections and modifications to the Project drawings and any other relevant document comprising the Project in its entirety, as necessary to make them internally consistent and in conformity with the final action on the Project. This includes amending the Project drawings as necessary to incorporate revisi ons made by the decision-making body and/or reflecting any modifications identified in these conditions of approval. Three copies of final Approved Plan set, shall be submitted to the Planning Division for certification. Said plans must be certified by the Planning Division prior to submittal of any post- entitlement permit, including grading, public improvement, landscape, or building plans for the Project.

4. Conformance to Approved Plans.

a. The operation and/or use of the subject property shall be co nsistent with the Project Description and Details of Request, designated with the Approved Plan set.

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b. Nothing in this Permit shall authorize the Applicant to intensify the authorized activity beyond that which is specifically described in this Permit.

c. Once a permit has been issued, the Applicant may request Permit modifications. “Minor" modifications may be granted if found by the Director of Development Services to be in substantial conformity with the Approved Plan set, including all exhibits and Per mit conditions attached hereto. This includes modifications to any Grading Exemptions for the slopes up to an additional one foot in height, and modifications to retaining wall heights.

Modifications beyond the scope described in the Approved Plan set may require submittal of an amendment to the Permit and approval by the authorized agency.

5. Limitations on Use. Prior to any use of the Project site pursuant to this Permit, all Conditions of Approval contained herein shall be completed or secured to the satisfaction of the Development Services Department.

6. Certificate of Occupancy.

a. No change in the character of occupancy or change to a different group of occupancies as described by the Building Code shall be made without first obtaining a Certificate of Occupancy from the Building Official, as required, and any such change in occupancy must comply with all other applicable local and state laws.

b. Prior to final occupancy, a Planning Final Inspection shall be completed to ensure that the property is in full c ompliance with the Permit terms and conditions. The findings of the inspection shall be documented on a form and content satisfactory to the Director of Community Development.

7. Availability of Permit Conditions.

a. Prior to issuance of building permits, the Applicant shall cause a covenant regarding real property to be recorded that sets forth the terms and conditions of this Permit approval and shall be of a form and content satisfactory to the Director of Development Services.

b. The Applicant shall make a copy of the terms conditions of this Permit readily available to any member of the public or City staff upon request. Said terms and conditions shall be printed on any construction plans that are submitted to the Building Division for plan check processing.

8. Right to Entry. The holder of this Permit shall make the premises available for inspection by City staff during construction or operating hours and allow the investigations of property necessary to ensure that minimum codes, regulations, local ordinances and safety requirements are properly followed. The Applicant shall provide such business records, licenses, and other materials necessary upon request to provide evidence of compliance with the conditions of approval , as well as federal, state, or laws.

9. Compliance with Federal, State, and Local Laws. Nothing in this Permit shall relieve the Applicant from complying with conditions, performance standards, and regulations generally imposed upon activities similar in nature to the activity authorized by this permit. (Permits from 100
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other agencies may be required as specified in the Permit’s Details of Request.) This Permit does not relieve the Applicant of the obligation to comply with all applicable statutes, regulations, and procedures in effect at the time that any engineering permits or building permits are issued unless specifically waived herein.

No part of this Permit’s approval shall be construed to permit a violation of any part of the Escondido Municipal or Zoning Code. During Project construction and after Project completion, the Applicant shall ensure the subject land use activit ies covered by this Permit is conducted in full compliance with all local and state laws.

10. Fees. The appropriate development fees and Citywide Facility fees shall be paid in accordance with the prevailing fee schedule in effect at the time of building permit issuance, to the satisfaction of the Director of Development Services. Through plan check processing, the Applicant shall pay development fees at the established rate. Such fees may include, but not be limited to: Permit and Plan Checking Fees, Water and Sewer Service Fees, School Fees, Traffic Mitigation Fees, Flood Control Mitigation Fees, Park Mitigation Fees, Fire Mitigation/Cost Recovery Fees, and other fees listed in the Fee Schedule, which may be amended. Arrangements to pay these fees shall be made prior to building permit issuance to the satisfaction of the Development Services Department.

11. Community Facility District or Funding Mechanism. In accordance with the General Plan, the Developer shall fund all on -going operational costs of providing municipal services required for the Project, the amount of such funding shall be in ac cordance with City Ordinance 2020 -10, unless another amount is approved by the City Council at the time of Project approval. Such funding shall occur through either an agreement to form or annex into Services CFD 2020 -1 or the establishment of another lawful funding mechanism reasonably acceptable to the City (“Public Services Funding Agreement”). Projects that elect to annex into the Services CFD shall submit consent forms prior to the first permit issuance if they have not done so already. The provisions of the Public Services Funding Agreement shall specify any terms and limitations necessary to implement the CFD or other funding mechanism to offset the impacts to public services associated with the project. The City Manager, or City Manager’s designee, shall be authorized to approve and execute the Public Services Funding Agreement, and the Public Services Funding Agreement shall be finalized prior to the City’s issuance of any permit for the Project.

12. Public Art Partnership Program. All requirements of the Public Art Partnership Program, Ordinance No. 86 -70 shall be satisfied prior to any building permit issuance. The ordinance requires that a public art fee be added at the time of the building permit issuance for the purpose of participating in the City Public Art Program.

13. Clerk Recording.

a. State Law (SB 1535), effective January 1, 2007, requires certain projects to pay fees for purposes of funding the California Department of Fish and Wildlife. If the Project is found to have a significant impact to wildlife resources and/or sensitive habitat, in accordance with State law, or if the Project was analyzed through a negative declaration or environmental impact report, the Applicant shall remit to the City of Escondido Planning Division, within two (2) working days of the effective date of the adoption of the environmental document, a check payable to the “San Diego County Clerk,” in the amount that is published by the County Clerk’s 101
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Office. Failure to remit the required fees in full within the specified time noted above will result in County notification to the State that a fee was required but not paid, and could result in State imposed penalties and recovery under the provisions of the Revenue and Taxation code. In addition, Section 21089(b) of the Public Resources Code, and Section 711.4(c) of the Fish and Game Code provide that no project shall be operative, vested, or final until all the required filing fees are paid. The County Clerk’s Office filing fees for other environmental review documents are adjusted annually by the California Department of Fish and Wildlife. If the fee increases after the date of this approval, the Applicant shall be responsible for the increase.

b. For more information on filing fees, please refer to the County Clerk’s O ffice and/or the California Code of Regulations, Title 14, Section 753.5.

14. Legal Description Adequacy. The legal description attached to the application has been provided by the Applicant and neither the City of Escondido nor any of its employees assume responsibility for the accuracy of said legal description.

15. Application Accuracy. The information contained in the application and all attached materials are assumed to be correct, true, and complete. The City of Escondido is relying on the accuracy of this information and Project-related representations in order to process this application . Any permits issued by the City may be rescinded if it is determined that the information and materials submitted are not true and cor rect. The Applicant may be liable for any costs associated with rescission of such permits.

16. Enforcement. If any of the terms, covenants or conditions contained herein shall fail to occur or if they are, by their terms, to be implemented and maintained over time, the City of Escondido shall have the right to deny or withhold subsequent permit approvals or per mit inspections that are derived from the application entitlements herein granted; issue stop work orders; pursue abatement orders, penalties, or other administrative remedies as set forth in state and local laws; or institute and prosecute litigation to c ompel compliance with said conditions or seek damages for their violation. The applicant/developer shall be notified in advance prior to any of the above actions being taken by the City and shall be given the opportunity to remedy any deficiencies identified by the City.

17. Indemnification, Hold Harmless, Duty to Defend.

a. The Applicant shall indemnify, hold harmless, and defend (with counsel reasonably acceptable to the City) the City, its Councilmembers, Planning Commissioners, boards, commissions, departments, officials, officers, agents, employees, and volunteers (collectively, “Indemnified Parties”) from and against any and all claims, demands, actions, causes of action, proceedings (including but not limited to legal and administrative proceedings of an y kind), suits, fines, penalties, judgments, orders, levies, costs, expenses, liabilities, losses, damages, or injuries, at law or in equity, including without limitation the payment of all consequential damages and attorney’s fees and other related litiga tion costs and expenses (collectively, “Claims”), of every nature caused by, arising out of, or in connection with (i) any business, work, conduct, act, omission, or negligence of the Applicant or the owner of the Property (including the Applicant’s or the owner of the Property’s contractors, subcontractors, licensees, sublessees, invitees, agents, consultants, employees, or volunteers), or such 102
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activity of any other person that is permitted by the Applicant or owner of the Property, occurring in, on, about , or adjacent to the Property; (ii) any use of the Property, or any accident, injury, death, or damage to any person or property occurring in, on, or about the Property; or (iii) any default in the performance of any obligation of the Applicant or the owner of the Property to be performed pursuant to any condition of approval for the Project or agreement related to the Project, or any such claim, action, or proceeding brought thereon.

Provided, however, that the Applicant shall have no obligation to indemnify, hold harmless, or defend the City as to any Claims that arise from the sole negligence or willful misconduct of the City. In the event any such Claims are brought against the City, the Applicant, upon receiving notice from the City, shall defend the same at its sole expense by counsel reasonably acceptable to the City and shall indemnify the City for any and all administrative and litigation costs incurred by the City itself, the costs for staff time expended, and reasonable attorney’s fees (including the full reimbursement of any such fees incurred by the City’s outside counsel, who may be selected by the City at its sole and absolute discretion and who may defend the City against any Claims in the manner the City deems to be in the best interests of the City).

b. The Applicant further and separately agrees to and shall indemnify, hold harmless, and defend the City (including all Indemnified Parties) from and against any and all Claims brought by any third party to challenge the Project or its approval by the City, including but not limited to any Claims related to the Project’s environmental determinations or environmental review documents, or any other action taken by the City regarding environmental clearance for the Project or any of the Project app rovals. Such indemnification shall include the Applicant’s payment for any and all administrative and litigation costs and expenses incurred by the City in defending against any such Claims, including payment for all administrative and litigation costs incurred by the City itself, the costs for staff time expended, and reasonable attorney's fees (including the full reimbursement of any such fees incurred by the City’s outside counsel, who may be selected by the City at its sole and absolute discretion and who may defend the City against any Claims in the manner the City deems to be in the best interests of the City and the Project).

c. The City, in its sole discretion and upon providing notice to the Applicant, may require the Applicant to deposit with the Ci ty an amount estimated to cover costs, expenses, and fees (including attorney’s fees) required to be paid by the Applicant in relation to any Claims referenced herein, which shall be placed into a deposit account from which the City may draw as such costs, expenses, and fees are incurred. Within 14 days after receiving written notice from the City, the Applicant shall replenish the deposit account in the amount the City determines is necessary in the context of the further defense of such Claims. To the e xtent such deposit is required by the City, the amount of such deposit and related terms and obligations shall be expressed in a written Deposit Account Agreement, subject to the City Attorney’s approval as to form. The City, in its sole and reasonable discretion, shall determine the amount of any initial deposits or subsequent deposits of funds, and the Applicant may provide documentation or information for the City to consider in making its determinations.

Nothing within this subsection shall be constru ed as to relieve the Applicant’s obligations to indemnify, hold harmless, or defend the City as otherwise stated herein.

B. Construction, Maintenance, and Operation Obligations:

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1. Code Requirements. All construction shall comply with the applicable requirements of the Escondido Municipal Code, Escondido Zoning Code, California Building Code; and the requirements of the Planning Division, Engineering Services Department, Director of Community Development, Building Official, City Engineer, and the Fire Chief in carrying out the administration of said codes. Approval of this Permit request shall not waive compliance with any City regulations in effect at the time of Building Permit issuance unless specifically waived herein or by the terms of a Development Agreement.

As a condition of receiving the land use approvals specified herein, Applicant shall maintain the property subject to the approvals in compliance with all applicable city codes governing the condition or appearance of the property. In addition to compliance with such basic standards, the property subject to these approvals shall also be maintained free of trash, plant debris, weeds, and concrete (other than existing foundations and permanent structures). Any signs placed on the property advertising such property for sale or rent shall be in accordance with applicable laws, and be kept clean, in like-new condition, and free from fading and graffiti at all times. This condition shall be applicable from the date the land use is ap proved. The failure to comply with this condition shall subject the approvals specified herein to revocation for failure to comply.

2. Agency License and Permitting. In order to make certain on - or off -site improvements associated with the Approved Plan set, the Permit request may require review and clearance from other agencies. Nothing in these Conditions of Approval shall be construed as to waive compliance with other government agency regulations or to obtain permits from other agencies to make certain on- or off -site improvements prior to Final Map recordation , grading permit issuance, building permit issuance, or certificate of occupancy as required. This review may result in conditions determined by the reviewing agency.

At all times during the effective period of this Permit, the Applicant and any affiliated responsible party shall obtain and maintain in valid force and effect, each and every license and permit required by a governmental agency for the construction, maintenance, and operation of the authorized activity.

3. Utilities. All new utilities and utility runs shall be underground, or fee payment in-lieu subject to the satisfaction of the City Engineer.

4. Signage. All proposed signage associated with the Project must comply with Article 66 (Sign Ordinance) of the Escondido Zoning Code, unless modified by this Project Planned Development.

Separate sign permits will be required for Project signage. All non -conforming signs shall be removed. The Applicant shall submit with any sign permit graphic/list of all signs to be removed and retained, along with any new signage proposed.

5. Noise. All Project generated noise shall conform to the City’s Noise Ordinance (Ordinance 90 - 08).

6. Lighting. All exterior lighting shall conform to the requirements of Article 35 (Outdoor Lighting Ordinance) of the Escondido Zoning Code.

7. General Property Maintenance. The property owner or management company shall maintain the property in good visual and function al condition. This shall include, but not be limited to, all 104
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exterior elements of the buildings such as paint, roof, paving, signs, lighting and landscaping. The Applicant shall paint and re -paint all building exteriors, accessory equipment, and utility b oxes servicing the Project, as necessary to maintain clean, safe, and efficient appearances.

8. Anti-Graffiti. The Applicant shall remove all graffiti from buildings and wall surfaces within 48 hours of defacement, including all areas of the job site for when the Project is under construction.

9. Anti-Litter. The site and surrounding area shall be maintained free of litter, refuse, and debris.

Cleaning shall include keeping all publicly used areas free of litter, trash, and garbage.

10. Roof, Wall, and Ground Level Equipment. All mechanical equipment shall be screened and concealed from view in accordance with Section 33-1085 of the Escondido Zoning Code.

11. Trash Enclosures. Appropriate trash enclosure(s) or other approved trash system shall be approved by the Planning and Engineering Services Division. The property owner or management company shall be responsible for ensuring that enclosures are easily assessable for garbage and recyclables collection; and that the area is managed in a clean, safe, and efficient manner. Trash enclosure covers shall be closed when not in use. Trash enclosures shall be regularly emptied. There shall be the prompt removal of visible signs of overflow of garbage, smells emanating from enclosure, graffiti, pests, and vermin.

12. Staging Construction Areas. All staging areas shall be conducted on the subject property, subject to approval of the Engineering Department. Off -site staging areas, if any, shall be approved through the issuance of an off-site staging area permit/agreement.

13. Disturbance Coordinator. The Applicant shall designate and provide a point -of-contact whose responsibilities shall include overseeing the implementation of Project, compliance with Permit terms and conditions, and responding to neighborhood concerns.

14. Construction Waste Reduction, Disposal, and Recycling. Applicant shall recycle or salvage for reuse a minimum of 65% of the non -hazardous construction and demolition waste for residential projects or portions thereof in accordance with either Section 4.40 8.2, 4.408.3, or

4.408.4 of the California Green Building Standards Code; and/or for non -residential projects or portions thereof in accordance with either Section 5.408.1.1, 5.408.1.2, or 5.408.1.3 of the California Green Building Standards Code. In orde r to ensure compliance with the waste diversion goals for all residential and non -residential construction projects, the Applicant must submit appropriate documentation as described in Section 4.408.5 of the California Green Building Standards Code for residential projects or portions thereof, or Section 5.408.1.4 for non- residential projects or portions thereof, demonstrating compliance with the California Green Building Standards Code sections cited above.

15. Construction Equipment Emissions. Applicant sha ll incorporate measures that reduce construction and operational emissions. Prior to the City’s issuance of the demolition and grading permits for the Project, the Applicant shall demonstrate to the satisfaction of the Planning Division that its construction contractor will use a construction fleet wherein all 50 -horsepower or greater diesel-powered equipment is powered with California Air Resources Board (“CARB”) certified Tier 4 Interim engines or equipment outfitted with CARB -verified diesel particulate filters. An exemption from this requirement may be granted if (i) the Applicant provides documentation demonstrating that equipment with Tier 4 Interim engines are not reasonably available, and (ii) 105
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functionally equivalent diesel PM emission totals can b e achieved for the Project from other combinations of construction equipment. Before an exemption may be granted, the Applicant’s construction contractor shall demonstrate to the satisfaction of the Director of Community Development that (i) at least two c onstruction fleet owners/operators in San Diego County were contacted and those owners/operators confirmed Tier 4 Interim equipment could not be located within San Diego County during the desired construction schedule, and (ii) the proposed replacement equ ipment has been evaluated using the California Emissions Estimator Model (“CalEEMod”) or other industry standard emission estimation method, and documentation provided to the Planning Division confirms that necessary Project-generated functional equivalencies in the diesel PM emissions level are achieved , consistent with the environmental review/Addendum.

C. Parking and Loading/Unloading.

1. A shown on the site plan, a minimum of 27 on-site parking spaces (which includes up to 12 tandem spaces) shall be provided at all times. Parking shall be subject to the on-site parking requirements of Article 39 and Density Bonus Requirements, as identified in the Project details of request.

Garages shall be maintained to provide parking for vehicles and storage (as may be designed) and other use of the garage space shall not impede the use of the garages for parking of vehicles.

2. No contractor or employee may store, or permit to be stored, a commercial or construction vehicle/truck; or personal vehicle, truck, or other personal property on public-right-of-way or other public property without permission of the City Engineer.

3. Prior to issuance of building permits, a parking management plan shall be submitted to the Planning Division for review and approval. Said plan shall address space assignment(s), tandem spaces (assignment and use) gate hours (if provided), general maintenance, signage and striping, delivery and other short-term parking allowances/requirements, guest parking (if provided), and any other issues which affect the use and maintenance of the parking areas/spaces , including access and staging of the trash bins for access by Escondido Disposal.

D. Landscaping: The property owner or owners’ association assumes all responsibility for maintaining all on-site landscaping; storm water facilities, any landscaping in the public right -of-way, and other common areas in a manner that satisfies the conditions contained herein.

1. Landscaped areas shall be maintaine d in a flourishing manner. Appropriate irrigation shall be provided for all landscape areas and be maintained in a fully operational condition.

2. All existing planting and planter areas, including areas within the public right -of-way, shall be repaired and landscaping brought into compliance with current standards. All dead plant material shall be removed and replaced by the property owner or management company.

3. If at the time of planning final inspection that it is determined that sufficient screening is not provided, the Applicant shall be required to provide additional landscaping improvements to the satisfaction of the Planning Division.

4. The landscaped areas shall be free of all foreign matter, weeds and plant material not approved as part of the landscape plan.

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5. Failure to maintain landscaping and the site in general may result in the setting of a public hearing to revoke or modify the Permit approval.

6. Landscaping Plans. Applicant shall install all required improvements including screening walls, retaining walls, storm improvements, and landscaping in substantial conformance to the planting and irrigation schedule as shown on the concept plans detailed in the Planning Commission staff report and associated Resolution exhibits.

a. A final landscape and irrigation plan shall be submitted to the Engineering Services Division for review and approval, if meeting any of the criteria listed under Section 33 -1323 of the Zoning Code. Five copies of detailed landscape and irrigation plans shall be submitted to the Engineering Services Department with the second submittal of the grading plan. The initial submittal of the landscape plans shall include the required plan check fees, paid in accordance with the prevailing fee schedule in effect at the time of submit tal. Details of Project fencing and walls, including materials and colors, shall be provided on the landscape plans. (Building permits may also be required.) The landscape and irrigation plans shall be reviewed and approved by the Planning Division and Engineering Services D ivision prior to issuance of grading permits, and shall be equivalent or superior to the conceptual landscape plans included as part of the Approved Plan set, to the satisfaction of the Planning Division. The required landscape and irrigation plans(s) shall comply with the provisions, requirements and standards outlined in Article 62 (Landscape Standards) of the Escondido Zoning Code, except where stricter requirements are imposed by the State of California.

b. Screening walls, retaining walls, storm improvements, and landscaping ( i.e., planting and irrigation) is to be provided prior to final occupancy , to the satisfaction of the Director of Development Services.

c. The installation of the landscaping and irrigation shall be inspected by the Project landscape architect upon completion. The landscape architect shall complete a Certificate of Landscape Compliance certifying that the installation is in substantial compliance with the approved landscape and irrigation plans and City standards. The Applicant shall submit the Certificate of Compliance to the Planning Division and request a final inspection.

d. Any new freestanding walls and/or retaining walls shall incorporate decorative materials or finishes, and shall be indicated on the landscaping plans. (Building permits may also be required.) All freestanding walls visible from points beyond the Project site shall be treated with a protective sealant coating to facilitate graffiti removal. The sealant shall be a type satisfactory to the Director of Development Services.

E. Specific Planning Division Conditions:

Tribal Cultural Resource Conditions (TC)

1. TC-1 - Prior to the issuance of a grading permit, the Applicant shall enter into a Tribal Cultural Resource Treatment and Monitoring Agreement (also known as a Pre -Excavation Agreement) with a tribe that is traditionally and culturally affiliated with the Project Location (“TCA Tribe”). The purposes of the agreement are (1) to provide the Applicant with clear expectations regarding tribal 107
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cultural resources, and (2) to formalize protocols and procedures between the Applicant/Owner and the TCA Tribe for the protection and treatment of, including but not limited to, Native American human remains, funerary objects, cultural and religious landscapes, ceremonial items, traditional gathering areas and cultural items, located and/or discovered through a monitoring program in conjunction with the construction of the Project, including additional archaeological surveys and/or studies, excavations, geotechnical investigations, grading, and all other ground -disturbing activities. The agreement shall incorporate, at a minimum, the performance criteria and standards, protocols, and procedures set forth in conditions of approval TC-2 through TC-10, and the following information:
 Parties entering into the agreement and contact information.  Responsibilities of the Property Owner or their representative, archaeological monitors, and tribal monitors.
 Project grading and development scheduling, including determination of authority to adjust in the event of unexpected discovery, and terms of compensation for the monitors, including overtime and weekend rates, in addition to mileage reimbursement.  Requirements in the event of unanticipated discoveries, which shall address grading and grubbing requirements including controlled grading and controlled vegetation removal in areas of cultural sensitivity, analysis of identified cultural materials, and on -site storage of cultural materials.
 Treatment of identified Native American cultural materials.  Treatment of Native American human remains and associated grave goods.  Confidentiality of cultural information including location and data.  Negotiation of disagreements should they arise.
 Regulations that apply to cultural resources that have been identified or may be identified during project construction.

2. TC-2 - Prior to issuance of a grading permit, the Applicant shall provide written verification to the City that a qualified archaeologist and a Native American monitor associated with a TCA Tribe have been retained to implement the monitoring program. The archaeologist shall be responsible for coordinating with the Native American monitor. This verification shall be presented to the City in a letter from the Project archaeologist that confirms the selected Native American monitor is associated with a TCA Tribe. The City, prior to any pre -construction meeting, shall approve all persons involved in the monitoring program.

3. TC-3 - The qualified archaeologist and a Native American monitor shall attend all applicable pre- construction meetings with the General Contractor and/or associated subcontracto rs to explain and coordinate the requirements of the monitoring program.

4. TC-4 - During the initial grubbing, site grading, excavation or disturbance of the ground surface (including both on - and off-site improvement areas), the qualified archaeologist and the Native American monitor shall be present full -time. If the full -time monitoring reveals that the topsoil throughout the Project impact area (both on and off-site) has been previously removed during the development of the roads and buildings within the Project area, then a decrease of monitoring to part-time monitoring or the termination of monitoring can be implemented, as deemed appropriate by the qualified archaeologist in consultation with the Native American monitor. The frequency of subsequent monitoring shall depend on the rate of excavation, the materials excavated, and any discoveries of tribal cultural resources as defined in California Public Resources Code Section 21074. The qualified archaeologist, in consultation with the Native American mo nitor, shall be 108
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responsible for determining the duration and frequency of monitoring considering these factors.

Archaeological and Native American monitoring will be discontinued when the depth of grading and soil conditions no longer retain the potential to contain cultural deposits (i.e., soil conditions are comprised solely of fill or granitic bedrock).

5. TC-5 - In the event that previously unidentified tribal cultural resources are discovered, all work must halt within a 100 -foot radius of the discovery. The qualified archaeologist and the Native American monitor shall evaluate the significance of the find and shall have the authority to modify the no-work radius as appropriate, using professional judgment. The qualified archaeologist and Native American Monitor shall consider the criteria identified by California Public Resources Code sections 21083.2(g) and 21074, and CEQA Guidelines sections 15064 and 15064.5(c) in determining the significance of a discovered resource. If the professional archaeologist and Native American monitor determine that the find does not represent a culturally significant resource, work may resume immediately, and no agency notifications are required. Isolates and clearly non - significant deposits shall be documented in the field and collected and monitored grading can immediately proceed. All unearthed archaeological resources or tribal cultural resources shall be collected, temporarily stored in a secure location, and repatriated for later reburial on the project site, pursuant to the terms of the Pre-Excavation Agreement.

6. TC-6 - A potentially significant tribal cultural resource, considering the criteria identified by California Public Resources Code sections 21083.2(g) and 21074, and CEQA Guidelines sections 15064 and 15064.5(c), the archaeologist shall immediately notify the City of said discovery. The qualified archaeologist, in consultation with the City, the consulting TCA Tribe(s), and the Native American monitor, shall determine the significance of the discovered resource. A recommendation for the tribal cultural resource’s treatment and disposition shall be made by the qualified archaeologist in consultation with the TCA Tribe(s) and be submitted to the City for review and approval. If the find is determined to be a Tribal Cultural Resource under CEQA, as defined in California Public Resources Code Section 21074(a) though (c), appropriate treatment measures will be implemented. Work may not resume within the no -work radius until the City, through consultation as set forth h erein, determines either that: 1) the discovery does not constitute a Tribal Cultural Resource under CEQA, as defined in California Public Resources Code Section 21074(a) through (c); or 2) the approved treatment and disposition measures have been completed.

7. TC-7 - All sacred sites, significant tribal cultural resources, and unique archaeological resources encountered within the Project area shall be avoided and preserved. The avoidance and preservation of the significant tribal cultural resource or unique archaeological resource must first be considered and evaluated in consultation with the TCA Tribe(s) as required by CEQA and in compliance with all relevant conditions of approval for the Project. If any significant tribal cultural resource or unique arch aeological resource has been discovered and such avoidance or preservation measure has been deemed to be infeasible by the City’s Director of Development Services (after a recommendation is provided by the qualified archaeologist, in consultation with the TCA Tribe(s), making a determination of infeasibility that takes into account the factors listed in California Public Resources Code sections 21061.1, 21081(a)(3), and CEQA Guidelines section 15091, and in accordance with all relevant conditions of approval for the Project), then culturally appropriate treatment of those resources, including but not limited to funding an ethnographic or ethnohistoric study of the resource(s), and/or developing a research design and data recovery program to mitigate impacts shall be prepared by the qualified archaeologist (using 109
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professional archaeological methods), in consultation with the TCA Tribe and the Native American monitor, and shall be subject to approval by the City. No artifact sampling for analysis is allowed, unless requested and approved by the consulting TCA Tribe(s). Before construction activities are allowed to resume in the affected area, the research design and data recovery program activities must be concluded to the satisfaction of the City.

8. TC-8 - As specified by California Health and Safety Code section 7050.5, if human remains are found on the Project site during construction or during archaeological work, the person responsible for the excavation, or his or her authorized representative, shall immedia tely notify the San Diego County Coroner’s office. Determination of whether the remains are human shall be conducted on site and in situ where they were discovered by a forensic anthropologist, unless the forensic anthropologist and the Native American mon itor agree to remove the remains to a temporary off-site location for examination. No further excavation or disturbance of the site or any nearby area reasonably suspected to overlie adjacent remains shall occur until the coroner has made the necessary fin dings as to origin and disposition. A temporary construction exclusion zone shall be established surrounding the area of the discovery so that the area would be protected, and consultation and treatment could occur as prescribed by law. If the Coroner determines the remains are Native American and not the result of a crime scene, the Coroner will notify the NAHC, which then will designate a Native American Most Likely Descendant (MLD) for the project (California Public Resources Code § 5097.98) for proper treatment and disposition in accordance with California Public Resources Code section 5097.98. The designated MLD will have 48 hours from the time access to the property is granted to make recommendations concerning treatment of the remains. If the City does not agree with the recommendations of the MLD, the NAHC can mediate (California Public Resources Code § 5097.94). If no agreement is reached, the remains shall be kept in situ, or reburied in a secure location in close proximity to where they were found and where they will not be further disturbed (California Public Resources Code § 5097.98). Work may not resume within the no work radius until the lead agency, through consultation as appropriate, determines that the treatment measures have been completed to their satisfaction. The analysis of the remains shall only occur on site in the presence of the MLD, unless the forensic anthropologist and the MLD agree to remove the remains to an off-site location for examination.

9. TC-9 - If the qualified archaeolog ist elects to collect any tribal cultural resources, the Native American monitor must be present during any cataloging of those resources. Moreover, if the qualified archaeologist does not collect the cultural resources that are unearthed during the ground-disturbing activities, the Native American monitor may, at their discretion, collect said resources for later reburial on the Project site or storage at a local curation facility. Any tribal cultural resources collected by the qualified archaeologist shal l be repatriated to the TCA Tribe for reburial on the Project site. Should the TCA Tribe(s) decline the collection, the collection shall be curated at the San Diego Archaeological Center. All other resources determined by the qualified archaeologist, in consultation with the Native American monitor, to not be tribal cultural resources, shall be curated at the San Diego Archaeological Center.

10. TC-10 - Prior to the release of the grading bond, a monitoring report and/or evaluation report, if appropriate, that describes the results, analysis, and conclusions of the archaeological monitoring program and any data recovery program on the Project site, shall be submitted by the qualified archaeologist to the City. The Native American monitor shall be responsible fo r providing any notes or comments to the qualified archaeologist in a timely manner to be submitted with the 110
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report. The report will include California Department of Parks and Recreation Primary and Archaeological Site Forms for any newly discovered resour ces. A copy of the final report will be submitted to the South Coastal Information Center after approval by the City.

11. No utilities shall be released for any purpose or Certificate of Occupancy issued until all requirements of the Planning and Building Divisions, Fire Department and Engineering Services Division have been completed.

12. Building plans, prepared by a licensed design professional, must be submitted for the Project and must comply with the building and fire codes in effect at the time of building plan submittal.

13. The plans submitted for building permit shall include notes or details containing the necessary work involved in complying with these Project conditions.

14. Three residential units shall be deed restricted to households qualifying as very -low-income households, and rented at very-low-income rents per state policy (“Affordable Units”).

15. The screening of roof -mounted, ground-mounted, or wall -mounted mechanical equipment and devices is required in accordance with Section 33-1085 of the Escondido Zoning Code.

16. The Affordable Units shall be constructed concurrently with, or earlier than construction of the unrestricted units. The City shall not issue building permits for more than fifty (50) percent of the unrestricted units until the City has issued building permits for all of the Affordable Units.

17. The Affordable Units shall be constructed with the same exterior appearance and interior features, fixtures, and amenities, and shall use the same type and quality of materials as provided for the unrestricted units in the Project.

18. The design, appearance, and general quality of the Affordable Units shall be consistent or compatible with the design of the total housing development in terms of appearance, materials, and finished quality.

19. The average sq uare footage for the unrestricted units shall be approximately the same as the average square footage for the Affordable Units of the same number of bedrooms.

20. All Affordable Units shall have at least two (2) bedrooms as required by Municipal Code Section 33-1417(d).

21. The Affordable Units shall be disbursed within the housing development.

22. The City shall not approve any final inspections or issue any certificates of occupancy for more than fifty (50) percent of the unrestricted units until the City has issu ed certificates of occupancy for all of the Affordable Units.

23. The building, architecture, colors and materials, and conceptual landscaping shall be in substantial conformance with the Plot Plan exhibits attached as Exhibit “ F” and on -file with the Planning Division, except as modified by these conditions of approval. Minor modifications may be approved by the City Planner. Major modification will require a modification to the Plot Plan in 111
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accordance with Article 61. The final design of the western scree n wall, pedestrian entry gate/trellis, street frontage landscape design, vehicular access gate and western building elevation and stairs shall be approved by the Planning Division prior to the submittal of grading and building plans for the Project.

24. Permitted animals/pets shall be allowed in conformance with those identified in the Escondido Zoning Code for R-4/5 zoned properties (pursuant to Article 57), unless more restrictive standards are applied by the property owner.

25. Balconies and patios shall be kept in a neat and orderly manner. Items stored on balconies should be kept out of view or properly screened. Items shall not be hung over, across or on balconies or patios (such a towels, clothing, etc.).

26. Any materials containing asbestos that will be disturbed during demolition activities must be managed in accordance with any applicable local, State and Federal regulations by a licensed abatement contractor under controlled conditions. Current federal and state regulations require any repair, renovation and/or demolition of such materials be conducted only by workers and/or contractors who have been properly trained in the correct handling of asbestos. All asbestos work should be accomplished under the direction of an Independent State Certified A sbestos Consultant with oversight performed by a State Certified Site Surveillance Technician. The materials must be disposed of at an approved facility licensed to handle such waste.

27. Prior to issuance of building permits, the building plans, a final technical noise assessment shall be submitted to the Planning Division to ensure all rooms comply with the relevant interior noise standards of 45 CNEL for habitable areas. Appropriate means of air circulation and provision of fresh air also shall be incorporated into the final building plans to ensure that windows would be able to remain closed.

F. Housing and Neighborhood Services Conditions:

1. The Project shall provide a minimum of 3 dwelling units for very-low-income households (those earning less than 50 percent of the Area Median Income for the San Diego-Carlsbad-San Marcos MSA). Prior to issuance of a building permit, the developer shall sign a binding affordable housing agreement with the City, which will set forth the conditions and guidelines to be met in the implementation of Density Bonus Law requirements and any other applicable requirements (Within the affordable housing agreement, the developer will be responsible for annual recertification of household income qualifications and compliance with rent limits). The agreement will also establish specific compliance standards and remedies available to the City upon failure by the developer to restrict units to target households for the prescribed time period (55 years for all target units as described in Government Code section 65915(c)). Income qualified households will be monitored by the City of Escondido Housing and Neighborhood Services Division for the duration of the affordability period. Monitoring fees will be applied per the affordable housing agreement.

2. All affordability agreements shall run with the land and be binding on the applicant and its heirs, transferees, assigns, successors, administrators, executors, and other representatives, and recorded on the applicable property for the requisite period of time.

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G. General Building Division Conditions: Building plans must be submitted for the Project. These comments are preliminary only. A comprehensive plan check will be completed prior to permit issuance and additional technical code requirements may be identified and changes to the originally submitted plans may be required.

1. The applicant shall submit a complete set of construction plans to the Development Services Department for building permit plan check processing. The submittal shall include a Soils/Geotechnical Report, structural calculations, and State Energy compliance documentation (Title 24). Construction plans shall include a site plan, a foundation plan, floor and roof framing plans, floor plan(s), section details, exteri or elevations, and materials specifications. Submitted plans must show compliance with the latest adopted editions of the California Building Code (The International Building Code with California Amendments, the California Mechanical, Electrical and Plumbing Codes). Commercial and Multi -residential construction must also contain details and notes to show compliance with State disabled accessibility mandates. These comments are preliminary only. A comprehensive plan check will be completed prior to permi t issuance, additional technical code requirements may be identified, and changes to the originally submitted plans may be required.

H. General Fire Division Conditions:

1. Fire underground line, fire sprinkler, and fire alarm plans shall be a deferred submittal to the Escondido Fire Department. An approved paved access and adequate water supply shall be provided prior to any combustible being brought to the site. FDC and hydrant placement shall be approved by the Escondido Fire Department.

I. Specific Engineering Conditions of Approval:

GENERAL

1. The Developer shall provide the City Engineer with a current Preliminary Title Report covering subject property.

2. The location of all existing on -site and adjacent utilities shall be determined by the Developer’s engineer. If a conflict occurs with the proposed project or improvements, these utilities shall be relocated subject to approval of the owner of the utility/facility prior to approval of Grading plans and issuance of Building Permits.

3. Improvement plans prepared by a Civil Engineer, required for all public street, utility, and storm drain improvements, and Grading/Private Improvement plans prepared by Civil Engineer, required for all grading, drainage and private onsite improvement design, shall be submitted for review through the virtual plan review portal as a single package containing all items on the Engineering Initial Submittal Checklists. Landscaping Plans shall be prepared by a Landscape Architect.

4. The Developer shall post securities in accordance with the City prepared Bond and Fee Letter based on a final Engineer’s Estimate of Grading and Improvements Cost prepared by the project engineer.

The Developer is required to provide a Cash Clean Up deposit for all grading, landscaping, private Improvements and onsite drainage improvements prior to approval of Grading Plans and issuance of Grading Permit. This Cash Clean Up Deposit amount shall be 10% of the total cost of the project private improvements, drainage and landscaping. The Developer is required to provide Performance (100% of total public improvement cost estimate), Labor and Material (50% of total public improvement cost estimate) and Guarantee and Warrantee (10% of total public improvement cost estimate) bonds for all public improvements prior to approval of the Improvement Plans and issuance 113
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of Building Permits. All improvements shall be completed prior to issuance of a Certificate of Occupancy.

5. As surety for the construction of required off -site and/or on -site improvements, bonds and agreements in a form acceptable to the City Attorney shall be posted by the Developer with the City of Escondido prior to the approval of any building permit.

6. If site conditions change adjacent to the proposed development prior to completion of the project, the Developer will be responsible to modify his/her improvements to accommodate these changes.

The determination and extent of the modification shall be to the satisfaction of the City Engineer.

7. All public improvements shall be constructed in a manner that does not dam age existing public improvements. Any damage shall be corrected by the Developer to the satisfaction of the City Engineer.

8. The Developer’s engineer shall submit to the Planning Department 2 copies of the Plot Plan as conditionally approved. These copies shall be stamped and signed by the Planning Department verifying that they are an accurate reproduction of the approved Plot Plan and a PDF of this approved plot must be included with the upload of the first Final Engineering submittal for plan check to t he Engineering Department.

STREET IMPROVEMENTS AND TRAFFIC

1. The developer shall reconstruct and widen the existing public alley to 22’ wide with 3” asphalt concrete over approved aggregate base together with a 4’ wide concrete ribbon gutter in the center to the satisfaction of the City Engineer.

2. The driveway apron for the project’s new 9th Avenue entrance shall have a minimum throat width of 24’ and be constructed as an alley -type driveway apron in accordance with Escondido Standard Drawing No. G -5-E modifie d to the satisfaction of the City Engineer to accommodate the wider sidewalk and immediately adjacent existing driveway apron to the west.

3. The existing substandard radius curb return at the northwest corner of 9th Avenue and Escondido Blvd. (SE cor. of project frontage) shall be bulbed out into the intersection as a pedestrian plaza and enhanced crossing and reconstructed with minimum radius of 30 feet per City Standard together with new pedestrian ramps to the satisfaction of the City Engineer. This curb return reconstruction shall include the relocation and/or adjustment to grade of various utility and traffic signal equipment including any affected traffic signal poles, pull boxes, etc.

4. The Developer will be required to modify any affected existing traffic signal equipment, signing, and striping as needed to accommodate the curb return reconstruction in Condition 2 above. The Developer shall submit separate traffic signal and signing and striping modification plan sheets prepared by a Traffic Engine er for review and approval by the City Engineer. All necessary traffic signal, signage, and striping modifications shall be per current City, Caltrans, and MUTCD Standards and shall include video detection and APS as needed. The Developer’s Traffic Engi neer will also be responsible for any required signal timing and coordinating traffic signal modification work with the Developer’s Contractor(s) and Equipment Suppliers and City staff. 114
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5. The developer will be responsible for removal of all existing and installation of all new signing and striping in compliance with the current CA MUTCD standards and to the satisfaction of the City Engineer.

6. The Developer shall repaint all pavement striping and markings adjacent to the project that have been damaged and prematurely faded due to project construction traffic to the satisfaction of the City Engineer.

7. All unused driveways shall be removed and replaced with full height curb and gutter and sidewalk in accordance with City standards.

8. The Developer will be requi red to install building mounted lighting that adequately illuminates the adjacent public alley and all on-site private drive aisles and parking areas, to the satisfaction of the Building Official and City Engineer. It shall be the responsibility of the P roperty Owner to operate and maintain these outdoor lighting systems.

9. Adequate horizontal sight distance shall be provided at all street intersections and driveway entrances. Increased parkway widths, open space easements, and restrictions on landscaping may be required at the discretion of the City Engineer.

10. The Developer shall remove and replace all damaged sidewalk, curb and gutter, along all project frontages to the satisfaction of the City Engineer prior to issuance of a Certificate of Occupancy.

11. The Developer may be responsible for an overlay of portions of Escondido Blvd. and 9th Avenue due to utility trenches necessary to serve this project. The determination of the extent of any required overlay shall be to the satisfaction of the City Engineer.

12. Pedestrian access routes meeting current ADA requirements shall be provided into the project to the satisfaction of the City Engineer and City Building Official.

13. All gated entrances shall be separately approved by the City Engineer, Building Official, and the Fire Marshal.

14. The Developer will be required to provide a detailed detour and traffic control plan, for all construction and staging activities within the Escondido Blvd., 9 th Avenue, and public alley rights -of-way to the satisfaction of the City Engineer. This plan shall include any proposed sidewalk closures and provide for alternate pedestrian access around the project site. This plan shall be approved prior to the issuance of an Encroachment Permit for construction or other project activities within the public right- of-way.

GRADING

1. A site grading and erosion control plan prepared by a registered Civil Engineer shall be approved by the Engineering Department prior to issuance of building permits. The first submittal of the grading plan shall be accompanied by a copy of the preliminary soils and geotechnical report. The Soils Engineer will be required to indicate in the soils report that he/she has reviewed the grading design and found it to be in conformance with his/her recommendations. 115
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2. All pri vate access drive aisles and parking areas shall be paved with a minimum of 3” asphalt concrete over 6” of aggregate base or 7” Portland cement concrete over 6” aggregate base. All paved areas exceeding 15% slope or less than 1.0% shall be paved with Portland cement concrete.

3. Any proposed retaining walls not a part of the building foundations or stem walls shall be shown on and permitted as part of the site grading plan. Profiles and structural details shall be shown on the site grading plan and the So ils Engineer shall state on the plans that the proposed retaining wall design is in conformance with the recommendations and specifications as outlined in the Geotechnical report. Structural calculations shall be submitted for review by a Consulting Engineer for all walls not covered by Regional or City Standard Drawings. The Developer will be required to pay for all required third party structural engineering review of these structural calculations and details. Stem walls, foundation structures, or deepened footings that are to be constructed as part of a building structure will be permitted as part of the Building Department plan review and Building Permit process.

4. Any retaining walls and screen walls, stairs and raised landings shall be constructed completely within the Project property and shall not encroach into the public rights-of-way or public easement areas.

5. The Developer will be required to obtain permission from adjoining property owners for any off-site grading or other work necessary to construct the project and/or the required improvements.

6. Erosion control, including riprap, interim slope planting, sandbags, or other erosion control measures shall be provided to control sediment and silt from the project. The Developer shall be responsible for maintaining all erosion control facilities throughout the project.

7. The Developer shall be responsible for the recycling of all excavated materials designated as Industrial Recyclables (soil, asphalt, sand, concrete, land clearing brush and rock) at a recycling center or other location(s) approved by the City Engineer.

8. All blasting operations performed in connection with the improvement of the project shall conform to the City of Escondido Blasting Operations Ordinance.

9. All existing foundations, struct ures, trees not otherwise designated “to remain” on the Plot Plan, shall be removed or demolished from the site.

10. All driveway grades shall conform to current Escondido Design Standards and Escondido Standard Drawings.

DRAINAGE

1. Final on-site and off-site storm drain improvements shall be determined to the satisfaction of the City Engineer and shall be based on a Final Drainage Study to be prepared by the Engineer of Work.

The drainage study shall be in conformance with the City of Escondido Design Standards.

2. All on-site storm drains are private. The responsibility for maintenance of these storm drains shall be that of the Property Owner.

3. The project shall limit drainage flows to their pre-construction rates. Details and calculations for any detention vaults shall be submitted and approved as part of the grading plan check. 116
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4. A Final Storm Water Quality Management Plan (SWQMP) in compliance with the City’s latest adopted Storm Water Design Manual shall be prepared for all newly created or replaced onsite impervious areas, impervious frontage, and required offsite improvements. The SWQMP shall be submitted for approval with the final improvement and grading plans. The SWQMP shall include calculations for treatment, hydromodification, pump, and storage volume s. The SWQMP shall include detailed maintenance requirements and responsibilities for all onsite conveyance, treatment, detention, and pump facilities. The SWQMP shall demonstrate how any proposed proprietary best management practices like modular wetland s meet bio -filtration treatment requirements in accordance with the City’s Storm Water Design Manual.

5. If a stormwater discharge pump system cannot be avoided, any pump system proposed to meet project discharge flow rates must be redundant and include an alarm panel in case of failure. Pumps must have operating curves verified to meet the proposed flow rates. Pumps and accompanying electrical connections must be called out on the building plans and are subject to building permit approval. Underground storage/detention vaults must have appropriate inspection and maintenance access.

6. Trash enclosures shall be covered and be constructed to comply with storm water quality management requirements to the satisfaction of the City Engineer. The Developer will be r equired to provide evidence that Escondido Disposal Inc. is able and willing to provide trash and recycling service given this project’s internal trash collection and dumpster area.

7. The Developer will be required to have the current owner of the property sign, notarize, and record a Storm Water Control Facility Maintenance Agreement.

8. All onsite and offsite storm water treatment and retention facilities and their drains including modular wetlands, underground storage and pumps, any permeable paver areas shall be considered private.

The responsibility for maintenance and repair of all project constructed/installed post construction storm water treatment facilities both onsite and in the adjacent public right-of-way shall be that of the Property Owner.

WATER SUPPLY

1. Fire hydrants, if required, together with an adequate water supply shall be installed at locations approved by the Fire Marshall. Fire hydrants shall connect to a minimum 8 -inch water main. Fire service lines shall connect to a minimum 8-inch water main.

2. The final locations and sizing of all required water mains, water services, fire hydrants, detector check assemblies, and other water appurtenances shall be designed and installed to the satisfaction of the Director of Utilities and the Utilities Engineer.

3. Fire suppression and sprinkler systems beyond the Detector Check Valves are private and shall be designed and constructed per current Building, Plumbing, and Fire Code Standards, and per the requirements of the City Fire Marshal and City Building Official and shall be approved by a separate submittal to the Building Department. Although private and approved by separate plans and permit, all fire suppression lines shall be shown for reference and review on the various final engineering plan sets.
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4. All on-site water lines and backflow prevention devices beyond the City water meter or DCA shall be considered a private water system. The property owner shall be responsible for all maintenance of these water lines and appurtenances.

5. A 1 -inch minimum water service, 1 -inch water meter, and backflow prevention device shall be required for domestic water supply per City of Escondido Design Standards and Standard Drawings.

Water meters and backflow prevention devices shall not be installed within a drive way apron or on private drive areas.

6. No trees or deep-rooted bushes shall be planted within 10-feet of any water mains.

7. There shall be no permanent structures located within the City’s Public utility Easements.

8. Improvement plans for all proposed water main s and appurtenances shall be prepared by a Civil Engineer and submitted to the City of Escondido for review and approval.

9. All public water mains shall be located under asphalt or concrete pavement and not under curbs, gutters, medians or sidewalks.

10. Backflow prevention assemblies are private and should be located on private property. Backflows shall be located directly behind the public meter.

11. Any water services to be replaced, reconnected or relocated as a part of this project shall be replaced in entirety from the public water main to the public water meter to the satisfaction of the Utilities Engineer and Water Distribution Department.

12. Any fire hydrants to be replaced, reconnected or relocated as a part of this project shall be replaced in entirety from the public water main to the fire hydrant per the satisfaction of the Utilities Engineer and Water Distribution.

13. The Developer shall disconnect at the public main, all water services and fire hydrants laterals to be abandoned, to the satisfaction of the Utilities Engineer and Water Distribution Department.

SEWER

1. A private 6-inch minimum PVC sewer lateral with a standard clean-out within 18-inches of the Public Utility Easement or ROW shall be constructed for the project and shown on the Improvement and Grading plans. Sewer laterals less than 8 -inches in diameter shall connect to the sewer main with a wye or Inserta-Tee.

2. All sewer laterals shall be constructed per current City of Escondido Design Standards and Standard Drawings and per the current Uniform Plumbing Code.

3. No trees or deep-rooted bushes shall be planted within 15-feet of any sewer main or within 10-feet of any sewer lateral. Sewer laterals shall be 5-feet horizontally clear from other utilities.

4. All sewer laterals shall be considered a private sewer system. The Home property owner shall be responsible for all maintenance of sewer laterals to the public sewer main. 118
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5. Any sewer mains, laterals, and appurtenances shall be designed and constructed per current City of Escondido Design Standards and St andard Drawings, and to the satisfaction of the Utilities Engineer.

6. The project design shall be such that all existing or new sewer manholes are accessible at all times by City Vactor trucks for maintenance.

7. The Developer shall cap and plug at the public s ewer main all sewer lines and laterals to be abandoned, to the satisfaction of the Utilities Engineer and the City Inspector.

8. The location of all sewer laterals shall be shown on the grading and improvement plans.

LANDSCAPING

1. Site landscaping and irrigation plan for the project and for all right -of-way areas along the project frontages shall be prepared by a Licensed Landscape Architect and submitted to the Engineering Division with the second submittal of the grading plans for review and approval by Engineering and Planning Divisions. The initial submittal of the landscape plans shall include the required plan check fees. The responsibility for maintenance and irrigation of all project landscaping both onsite and in the adjacent public rights-of-way shall be that of the Property Owner.

EASEMENTS AND DEDICATIONS

1. The developer shall irrevocably offer to dedicate to the public a 5 -foot minimum wide pedestrian access easement beyond the existing rights -of-way at the northwest corner of 9 th Ave. and Escondido Blvd., extending from this corner 20 feet along both Escondido Blvd. and 9 th Ave. This irrevocably offered pedestrian access easement shall be for potential future pedestrian ramp landing area if a “bus only” lane is ever added along the project’s Escondido Blvd. frontage.

2. All private and public easements affecting subject property both proposed and existing to remain shall be shown, delineated, dimensioned, and clearly labeled on all plan sets.

3. The Developer shall grant to the public an additional 2 feet of public right-of-way along the project’s entire alley frontage.

4. The Developer shall grant to the public additional areas of public utility easement as needed for any onsite placement of water meters, DDCAs, and air valves to the satisfaction of the City Engineer and Utilities Engineer.

5. The Developer is responsible for making the arrangements to quitclaim any easements of record which conflict with the proposed project prior to issuance of Building Permits. If an easement of record contains an existing utility that must remain in service, proof of arrangements to quitclaim the easement once new utilities are constructed must be submitted to the City Engineer prior to approval of the Grading plans. Building permits will not be iss ued for structures in which construction will conflict with existing easements or utilities, nor will any securities be released until the existing easements are quitclaimed.

Material necessary for processing a dedication or easement shall include: a curr ent grant deed or title report, a legal description and plat of the dedication or easement signed and sealed by a person authorized to practice land surveying (document size) and traverse closure tapes. The City will prepare all final documents.
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CITYWIDE COMMUNITY FACILITIES DISTRICT (CFD)

1. In accordance with the General Plan, the Developer shall offset the cost of public services through an approved funding mechanism. The Developer shall fund all on -going operational costs of providing municipal services required for the Project, and such funding shall occur through either an agreement to form or annex into a Community Facilities District (CFD) or the establishment of another lawful funding mechanism reasonably acceptable to the City (“Public Services Fund ing Agreement”). The provisions of the Public Services Funding Agreement shall specify any terms and limitations necessary to implement the CFD or other funding mechanism to offset the impacts to public services associated with the project. The City Manager, or City Manager’s designee, shall be authorized to approve and execute the Public Services Funding Agreement, and the Public Services Funding Agreement shall be finalized prior to the City’s issuance of any permit for the Project.

SURVEYING AND MONUMENTATION

1. All property corners shall be monumented by a person authorized to practice land surveying and a Record of Survey Map (or Corner Record if appropriate) shall be recorded.

REPAYMENTS AND FEES

1. A cash security shall be posted to pay any costs incurred by the City to clean -up eroded soils and debris, repair damage to public or private property and improvements, install Best Management Practices devices and materials, and stabilize and/or close -up a non -responsive or abandoned project. Any moneys used by the City for cleanup or damage will be drawn from this security and the grading permit will be revoked by written notice to the Developer until the required cash security is replaced. The cleanup cash security shall be released upon final acceptance of the grading and improvements for this project. The amount of the cash security shall be 10% of the total estimated cost of the grading, retaining walls, walls, drainage facilities, landscaping and irr igation, and best management practices items of work up to a maximum of $50,000, unless a higher amount is deemed necessary by the City Engineer.

2. The Developer shall be required to pay all development fees of the City then in effect at the time, and in such amounts as may prevail when Building Permits are issued.

UTILITY UNDERGROUNDING AND RELOCATION

1. Any existing overhead utilities within the project boundary or along fronting streets and the alley shall be relocated underground as required by the City’s Undergrounding Ordinance.

2. The Developer shall sign a written agreement stating that they have made all such arrangements as may be necessary to coordinate and provide utility construction, relocation and undergrounding. All new utilities shall be constructed underground.

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Attachment "1"
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Attachment “2”

From: Escondido Meetings Portal via Municode Portal
Sent: Monday, November 27, 2023 9:31:00 PM (UTC-08:00) Pacific Time (US & Canada) To: MunicodeEmails
Subject: [EXT] Form submission from: Public Comment
Submitted on Monday, November 27, 2023 - 9:30pm
Submitted by user: Visitor
Submitted values are:

Board or Commission for Public Comment Planning Commission Email [email protected]
Council Meeting Date November 28, 2023
Item # 3
Subject Read Out Loud, please.

Position In Opposition
First and Last Name Steve & Sharon Casioce
Are you an Escondido Resident? Yes
Comments
We are home owners who live on the 300 block of W. 8th Ave. We are opposed to the Amendment to the South Centre City Specific regarding the proposed project site located on the SW corner of S.

Escondido Blvd and W. Ninth Ave due to various concerns. They are as follows:
1). Increased traffic congestion. Currently, on a daily basis non-residential traffic from Escondido Blvd flows onto our street. These vehicles make use of our driveway to turn around. I'll be exiting my driveway, just about getting to the pavement and at the same time a vehicle will come an turn around right in front of me. My neighbor across the street has commented to us when they sit in their front yard they've noticed how many vehicles use our driveway to turn around and said to us. "Why do they just use your driveway to turn around?" They have seen several cars in an hour due this all day long. This scenario is an accident waiting to occur and inhibits the free use of our driveway . 2). Increased parking issues. Currently, the residents on our street, have multiple vehicles and commercial vehicles per Single dwelling homes making residential parking very scarce, for example, one neighbor to the right of us has about 9 vehicles, on the other side of us, the neighbor has about 6 vehicles. This is because they have 3 - 6 units of family members living in each single family home. They park on red curbed parking and park on the street in front of their driveways. This blocks my vision from oncoming traffic when I exit my driveway creating a traffic hazard; they park in places not marked for parking, double-park their vehicle as if for an emergency; but, vehicles are parked for hours instead. This goes for several of the residents on the 300 block of W. 8th Ave. In the past few years, parking on the W. 300 block of 8th Ave. has become a nightmare. This has created traffic hazards where I've often seen near miss accidents due to these occurrences. These homes were built with parking provided for residents that were single family oriented. As time has moved forward, parking stalls have not increased to accommodate this change where multiple families live in homes built for single families.

Also, I understand that businesses are to provide their own parking. Currently, their excess flow of their customer's vehicles park on the 300 W. 8th Ave. which has no extra parking stalls! So, our concern is that with the proposed units, residential parking will become more scarce than it already has become because the Planning Commission has not taken the previous facts into account that one family that 347
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Attachment “2”
rents these units will bring in more family members like their brothers, sisters, aunts, uncles, parents, grandparents, cousins who have vehicles, trucks, commercial vehicles and where are they going to park??? or their visitors with their vehicles?? On the W. 8th Ave. If, they can find it? What about the residents who live on the 300 block of W 8th. Ave.?
3). Traffic congestion at 9th and Escondido Blvd. Currently, during peak hours in the afternoon vehicles traveling south on Escondido Blvd towards 9th Ave. already make it difficult to exit from 300 W. 8th onto Escondido Blvd. This proposed project would create a bottle-neck of traffic at that intersection by creating more housing units with more vehicles, more people and businesses bringing more congestion to an area that's already congested during peak hours. So, where is the overflow of vehicles from traffic congestion going to flow through? in the residential 300 block of 8th Ave? As homeowners, we're very concerned that the Planning Commission has overlooked the consequences that this proposed project may have on the
residents of this block. Please, do not approve this proposed project. Thank-you!

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Specific Plan Amendment
Exhibits to Modify (add the mixed-use overlay to APN 233-371-15-00 located within the Escondido Boulevard District)

1. General Plan Exhibit, Section 1.3 (Chapter 1, page 4)

2. South Centre City Spe cific Plan , Section 3.1 (Chapter 3, page 2 and page 4) and all applicable exhibits within C h. 3 corresponding to outside districts for reference/consistency

3. Northern section of the Area, Southern section of the Area, Section 4.1-Figure 4.1 (Chapter 4, page 2)

4. General Map Exhibit, Section 7.2 – Figure 7.2 (Chapter 7, page 4) Add Mixed-Use Overlay to APN
233-371-15-00 to allow up to 30
du/ac and 45-foot height limit
Attachment "3"
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Proposed text amendments to the Tables shown in red strikethrough and bold/underline.

The Escondido Boulevard, EB Commercial height remains at 26-feet/2-stories for commercial only projects and 45-feet for parcels specifically allowed with this Permit (City File No. PHG20-0036).

Attachment "3"
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ORDINANCE NO. 2023-20

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ADOPTING AN ADDENDUM

TO THE SOUTH CENTRE CITY FINAL NEGATIVE

DECLARATION AND APPROVING AN AMENDMENT TO

THE SOUTH CENTRE CITY SPECIFIC PLAN TO EXPAND THE

MIXED-USE OVERLAY WITHIN THE ESCONDIDO

BOULEVARD DISTRICT

The City Council of the City of Escondido (“City”), California, DOES HEREBY ORDAIN as follows:

SECTION 1. The City Council makes the following findings:
a) 9TH Avenue Escondido, LLC (“Applicant”) filed a land use development application (Planning Case No. PHG20-0036) constituting a request for an Amendment to the South Centre City Specific Plan (Escondido Boulevard District), Plot Plan and Density Bonus for a 21 -unit multi -family residential mixed -use development (“Project”), on approximately 0.46 acres generally located on the northwest corner of S. Escondido Boul evard and W. Ninth Avenue , addressed at 829-849 S. Escondido Boulevard and 332 W. Ninth Avenue (Assessor’s Parcel Numbers 233-371-14-00 and 233-371-15-00); as more particularly described in Exhibit “A ,” which is attached hereto and made a part hereof as th ough fully set forth herein (“Property”); and
b) The Application was submitted to, and processed by, the Planning Division of the Development Services Department as Planning Case No PHG20-0036. The Applicant seeks approval of an Amendment to the South Centre City Specific Plan as shown on Exhibit “ B”, and on file in the Planning Division, and incorporated herein as though fully set forth. c) A Final Negative Declaration was adopted for the South Centre City Specific Plan (City File Nos. PHG15-00003/ENV17-0005), and an Addendum to the Final Negative Declaration has been prepared for the Project in conformance with the California Environmental Quality Act (“CEQA”). d) The Planning Division of the Development Services Department completed its review and scheduled a public hearing regarding the application before the Planning Commission for November 28, 2023. Following the public hearing, the Planning Commission adopted Resolution No. 2023-23, which 351
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recommended that the City Council, among other things, approve the Project, including actions to approve the Amendment to the Specific Plan.

SECTION 2. The City Clerk, whose office is located at 201 North Broadway, Escondido , California 92025, is hereby designated as the custodian of the documents and other materials which constitute the record of proceedings upon which the City Council's decision is based, which documents and materials shall be available for public inspection and copying in accordance with the provisions of the California Public Records Act.

SECTION 3. The City Council did on December 13, 2023, hold a duly noticed public hearing as prescribed by law. Evidence was submitted to and considered by the City Council, including, without limitation:
a) Written information including all application materials and other written and graphical information posted on the project website.
b) Oral testimony from City staff, interested parties, and the public. c) The City Council staff report, dated December 13, 2023, which along with its attachments, is incorporated herein by this reference as though fully set forth herein, including the Planning Commission's recommendation on the request.
d) Additional information submitted during the public hearing.

SECTION 4. That the City Council has reviewed and considered the Addendum to the Final Negative Declaration prepared for the Project in conformance with CEQA. The Addendum to the Negative Declaration adequately address all environmental issues associated with the Project, and the Project would not result in any significant impacts to the environmental.

SECTION 5. That, upon consideration of the Findings of Fact /Factors to be Considered , attached as Exhibit “C” and incorporated herein as though fully set forth herein, the City Council approves adopts the Addendum to the Final Negative Declaration set for th in Exhibit “D” and incorporated herein 352
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by this reference and approves the Amendment to the Speci fic Plan attached as Exhibit “B” hereto and incorporated by this reference.

SECTION 6. Concurrently with the action on this Ordinance, the City Council is taking a number of actions in furtherance of the Project, as generally described in the December 13, 2023 City Council staff report. No single component of the series of actions made in connection with the Project shall be effective unless and until it is approved by an Ordinance or Resolution and is procedurally effective in the manner provided by state law. Therefore, this Ordinance shall become effective and operative only if City Council Resolution No. 2023-171 is approved.

SECTION 7. All references within this Ordinance to "Applicant" or "Developer," shall be equally applicable to the current property owner and to any successors -in-interest or assigns, whether such successors of assigns own, control, or otherwise have development authority for all, a portion, or portions of that property included within the Project site.

SECTION 8. SEPARABILITY. If any section, subsection sentence, clause, phrase or portion of this Ordinance is held invalid or unconstitutional for any reason by any court of competent jurisdiction, such portion shall be de emed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions.

SECTION 9. That as of the effective date of this Ordinance, all ordinances or parts of ordinances in conflict herewith are hereby repealed.

SECTION 10. The City Council authorizes all subsequent action to be taken by City Officials consistent with this Ordinance.

SECTION 11. That the City Clerk is hereby directed to certify to the passage of this Ordinance and to cause the same or a summary to be prepared in accordance with Government Code Section 36933, to be published one time within 15 days of its passage in a newspaper of general circulation, printed and published in the County and circulated in the City of Escondido.

SECTION 12. The Ordinance shall become effective 30 days from the date of the passage. 353
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EXHIBIT “A”
Legal Description
Lots 6, 7 and 8 in Block 136, in the City of Escondido, County of San Diego, State of California, According to Map Thereof No. 336, filed in the Office of the County Recorder of San Diego County, July 10, 1886.

APNs 233-371-14-00 and 233-371-15-00
Ordinance No. 2023-20
Exhibit "A"