Agenda packet — Escondido City Council, July 23, 2025 (part 1 of 2)

CITY of ESCONDIDO

Council Meeting Agenda
WEDNESDAY, JULY 23, 2025
4:00 PM - Closed Session (Parkview Conference Room)
5:00 PM - Regular Session
Escondido City Council Chambers, 201 North Broadway, Escondido, CA 92025

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

MAYOR
Dane White

DEPUTY MAYOR
Consuelo Martinez (District 1)

COUNCILMEMBERS
Joe Garcia (District 2)
Christian Garcia (District 3)
Judy Fitzgerald (District 4)

CITY MANAGER
Sean McGlynn

CITY ATTORNEY
Michael McGuinness

CITY CLERK
Zack Beck

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

In Person On TV Online

201 N. Broadway Cox Cable Channel 19 and U-verse Channel 99 www.escondido.gov

1 Wednesday, July 23, 2025

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

In Person In Writing

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

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

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

2 Wednesday, July 23, 2025

CLOSED SESSION
4:00 PM

CALL TO ORDER

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

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

CLOSED SESSION
I. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION (Government Code § 54956.9(d)(4)) a. One Matter

ADJOURNMENT

3 Wednesday, July 23, 2025

REGULAR SESSION
5:00 PM Regular Session

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

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

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

PRESENTATION
SiFi FiberCity Project Update

CLOSED SESSION REPORT

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

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

1. AFFIDAVITS OF PUBLICATION, MAILING, AND POSTING (COUNCIL/RRB) 4 Wednesday, July 23, 2025

2. APPROVAL OF WARRANT REGISTER
Approval for City Council and Housing Successor Agency warrants issued between July 07, 2025 to July 13, 2025.

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

3. APPROVAL OF MINUTES: None

4. WAIVER OF READING OF ORDINANCES AND RESOLUTIONS

5. ESTABLISHING THE PROPERTY TAX RATE AND FIXED CHARGE ASSESSMENTS FOR GENERAL

OBLIGATION BONDED INDEBTEDNESS
Request the City Council adopt Resolution No. 2025-100 to establish the property tax rate and fixed charge assessments for bonded indebtedness for Fiscal Year 2025/26.

Staff Recommendation: Approval (Finance Department: Christina Holmes, Director of Finance) Presenter: Christina Holmes, Director of Finance
a) Resolution No. 2025-100

6. SETTING SPECIAL TAX LEVY FOR COMMUNITY FACILITIES DISTRICT NO. 2000-01 (HIDDEN TRAILS) Request the City Council adopt Resolution No. 2025-96, setting the Special Tax Levy for Community Facilities District No. 2000-01 (Hidden Trails) (the “District”) for Fiscal Year 2025/26.

Staff Recommendation: Approval (Finance Department: Christina Holmes, Director of Finance) Presenter: Christina Holmes, Director of Finance
a) Resolution No. 2025-96

7. SETTING SPECIAL TAX LEVY FOR COMMUNITY FACILITIES DISTRICT NO. 2006-01 (EUREKA RANCH) Request the City Council adopt Resolution No. 2025-97, setting the Special Tax Levy for Community Facilities District No. 2006-01 (Eureka Ranch) (the “District”) for Fiscal Year 2025/26.

Staff Recommendation: Approval (Finance Department: Christina Holmes, Director of Finance) Presenter: Christina Holmes, Director of Finance
a) Resolution No. 2025-97

5 Wednesday, July 23, 2025

8. SETTING SPECIAL TAX LEVY FOR COMMUNITY FACILITIES DISTRICT NO. 2020-2 (THE VILLAGES) Request the City Council adopt Resolution No. 2025-98, setting the Special Tax Levy for Community Facilities District No. 2020-2 (The Villages)(The “District”) for Fiscal Year 2025/26.

Staff Recommendation: Approval (Finance Department: Christina Holmes, Director of Finance) Presenter: Christina Holmes, Director of Finance
a) Resolution No. 2025-98

9. SETTING SPECIAL TAX LEVY FOR COMMUNITY FACILITIES DISTRICT NO. 2022-1 (ECLIPSE/MOUNTAIN HOUSE)
Request the City Council adopt Resolution No. 2025-99, setting the Special Tax Levy for Community Facilities District No. 2022-1(Eclipse/Mountain House) (the “District”) for Fiscal Year 2025/26.

Staff Recommendation: Approval (Finance Department: Christina Holmes, Director of Finance) Presenter: Christina Holmes, Director of Finance
a) Resolution No. 2025-99

10. FINAL MAP UNDER CONSIDERATION FOR APPROVAL
Request the City Council receive and file notice that a Final Map for Tract PL21-0269 at 916, 942, and 943 Stanley Avenue, and odd numbered addresses between 2005-2175 Conway Drive, APNs: 224-141- 23, 224-141-24, 224-141-25, 224-142-30, 224-142-31, 224-142-32, and 224-142-33, has been filed for approval.

Staff Recommendation: Receive and File (Development Services Department: Christopher McKinney, Deputy City Manager/Interim Director of Development Services, and Jonathan Schauble, City Engineer) Presenter: Owen Tunnell, Assistant City Engineer

11. PURCHASE THREE SUTPHEN MONARCH PUMPERS FROM SUTPHEN, INC. OF DUBLIN, OHIO Request the City Council adopt Resolution No. 2025-101, authorizing the Fleet Services Division to purchase three (3) Sutphen Monarch Fire Engines from Sutphen, Inc. in the amount of $3,922,050.44 through a Cooperative Purchase Contract with Sourcewell. The purchase price includes all taxes, delivery, operator and mechanic training, and all associated fees.

Staff Recommendation: Approval (Public Works Department: Joseph Goulart, Director of Public Works) Presenter: Jeramiah Jennings, Fleet Manager
a) Resolution No. 2025-101
6 Wednesday, July 23, 2025

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

12. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ESCONDIDO, CALIFORNIA, APPROVING A PLANNED DEVELOPMENT PERMIT (MASTER AND PRECISE PLAN), FOR CONSTRUCTION OF 35

DWELLING UNITS
Approved on June 18, 2025 with a vote count of 3/2 (White, C. Garcia - No). a) Ordinance No. 2025-04 (Second Reading and Adoption)

CURRENT BUSINESS

13. AWARD A CONSTUCTION CONTRACT FOR THE SPLASH PAD AT GROVE PARK PROJECT AND AUTHORIZE

STAFF TO PROCESS CHANGE ORDERS UP TO TWENTY PERCENT OF THE CONTRACT AWARD AMOUNT Request the City Council adopt Resolution No. 2025-95 awarding the installation contract for the Splash Pad at Grove Park Project (“Project”) to Western State Builders, Inc. and authorizing the Mayor, on behalf of the City, to execute a Public Improvement Agreement in the amount of $2,356,264 to complete base bid items Nos. 1 thru 30 and additive alternate items Nos. 31, 32 & 33 and authorize the City Manager to approve change orders consistent with Municipal Code Section 10-97(c).

Staff Recommendation: Approval (Public Works Department: Joseph Goulart, Director of Public Works and Robert Rhoades, Assistant Director of Community Services) Presenter: Ed Vasquez, Project Manager
a) Resolution No. 2025-95
7 Wednesday, July 23, 2025

14. ENTERING INTO A LEASE BETWEEN THE CITY OF ESCONDIDO AND THE VINE INSTITUTE FOR THE

CREATION AND OPERATION OF THE ESCONDIDO AGX REGIONAL INNOVATION HUB AND PUBLIC

SERVICE AGREEMENT FOR OPERATIONAL STARTUP FUNDING
Request the City Council adopt Resolution No. 2025-43 authorizing the Mayor to execute a lease agreement for the property located at 455 N. Quince Street, Escondido, California, 92025, between the City of Escondido and The VINE Institute, a California non-profit benefit corporation and adopt Resolution No. 2025-47 authorizing the City Manager to execute an Public Service Agreement between the City and The VINE for startup funding for the Escondido AgX Innovation Hub.

Staff Recommendation: Approval (Economic Development Department: Jennifer Schoeneck, Director of Economic Development)
Presenter: Jennifer Schoeneck, Director of Economic Development a) Resolution No. 2025-43
b) Resolution No. 2025-47

FUTURE AGENDA

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

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

COUNCILMEMBERS SUBCOMMITTEE REPORTS AND OTHER REPORTS
CITY MANAGER’S REPORT
The most current information from the City Manager regarding Economic Development, Capital Improvement Projects, Public Safety, and Community Development.

8 Wednesday, July 23, 2025

ADJOURNMENT

UPCOMING MEETING SCHEDULE
Wednesday, August 13, 2025 4:00 & 5:00 PM Closed Session, Regular Meeting, Council Chambers Wednesday, August 20, 2025 4:00 & 5:00 PM Closed Session, Regular Meeting, Council Chambers

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

9 Consent Item No. 1 July 23, 2025

A F F I D A V I T S

I T E M

P O S T I N G – NONE

10 Item1.

STAFF REPORT

July 23, 2025
File Number 0400-40

SUBJECT

APPROVAL OF WARRANT REGISTER

DEPARTMENT
Finance

RECOMMENDATION
Approval for City Council and Housing Successor Agency warrants issued between July 07, 2025 to July 13, 2025
Staff Recommendation: Approval (Finance Department: Christina Holmes) ESSENTIAL SERVICE – Internal requirement per Municipal Code Section 10 COUNCIL PRIORITY –

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

Dates 07/07/2025 to 07/13/2025
Total $8,355,836.47
Number of Warrants 171

BACKGROUND
The Escondido Municipal Code Section 10-49 states that warrants or checks may be issued and paid prior to audit by the City Council, provided the warrants or checks are certified and approved by the Director of Finance as conforming to the current budget. These warrants or checks must then be ratified and approved by the City Council at the next regular Council meeting. 11 Item2.

Consent Item No. 3 July 23, 2025

A P P R O V A L

O F

M I N U T E S

12 Item3.
13 Item4.

STAFF REPORT

July 23, 2025
File Number 0440-35

SUBJECT

ESTABLISHING THE PROPERTY TAX RATE AND FIXED CHARGE ASSESSMENTS FOR GENERAL

OBLIGATION BONDED INDEBTEDNESS

DEPARTMENT
Finance

RECOMMENDATION
Request the City Council adopt Resolution No. 202 5-100 to establish the property tax rate and fixed charge assessments for bonded indebtedness for Fiscal Year 2025/26.

Staff Recommendation: Approval (Finance: Christina Holmes, Director of Finance) Presenter: Christina Holmes, Director of Finance
ESSENTIAL SERVICE – Yes, Internal Requirement, Debt Repayment COUNCIL PRIORITY – Internal Requirement, Debt Repayment

FISCAL ANALYSIS
A total of $4, 848,000 will be needed for the annual debt service payments for the General Obligation Bonds. This represents $1,019,000 due in March 2026 and $3,829,000 due in September 2026.

PREVIOUS ACTION
The City Council certified the results of the November 2, 2004, election approving Proposition P on December 1, 2004. On July 12, 2006, the City Council authorized the issuance and sale of the General Obligation Bonds. The Bonds provided financing for the construction of three new fire stations, a replacement of Fire Station 1, and a combined Police and Fire Headquarters Facility.

The City of Escondido General Obligation Bonds, Election of 2004, Series A (Fire, Police, and Emergency Response Measure) were refunded on June 9, 2015 by the issuance of the General Obligation Refunding Bonds Series 2015. The Bonds mature on September 1, 2036 . Prior year’s Resolution No. 2024-111 was adopted on August 7, 2024.

14 Item5.

BACKGROUND
General Obligation Bonds are secured by the legal obligation to levy an ad valorem property tax upon taxable property within the City in an amount sufficient to pay the yearly debt service (principal and interest) payment. The debt service payment for March 2026 is $1,019,000 and the debt service payment for September 2026 is $3,829,000. The City is required to set a tax rate to meet these financial obligations.

The assessed value for property in Escondido is used as the basis for applying the levy to taxable properties.

The starting point for calculating the property tax levy is the current year taxable assessed value. To this assessed value amount, a delinquency factor is applied. The City’s fiscal year 2024/25 delinquency rates for secured and unsecured property are estimated to be 2.68 percent and 1.61 percent, respectively, and the five-year average delinquency rates were 2.20 percent and 2.67 percent.

For Fiscal Year 2025/26, the City has used a 3 percent delinquency factor in calculating the property tax rate for both secured and unsecured property. The delinquency factors used in calculation of the property tax rate for the past five tax years 2020/21 to 2024/25 were 3.0 percent, 3.0 percent, 3.0 percent, 3.0 percent, and 3.0 percent respectively.

% Increase
(Decrease)
Description FY 2024/25 FY 2024/25 in Valuation

Secured Assessed Valuation $21,759,922,668.00 $22,570,922,477.00 Less Delinquency Factor (652,797,680.04)

(677,127,674.31)

Net Collectible Secured 21,107,124,987.96

21,893,794,802.69

3.72%
Unsecured Assessed Valuation 694,954,568.00 787,387,559.00

Less Delinquency Factor (20,848,637.04) (23,621,626.77)

Net Collectible Unsecured 674,105,930.96

763,765,932.23

13.3%
TOTAL ALL NET COLLECTIBLE $21,781,230,918.92 $22,657,560,734.92

4.02%

15 Item5.

The County of San Diego has provided to the City the estimated 202 5/26 Fiscal Year assessed valuations to be used for the tax rate computation. A two -year comparison of the City’s secured and unsecured assessed valuations, as adjusted by the applicable annual delinq uency factor, is shown below. The net collectible assessed valuations increased by approximately 4.02 percent. This increase in net collectible assessed value will cause a decrease in the calculated property tax rate for fiscal year 2025/26.

In order to collect the required debt service, the property tax rate will be set at 0.0 1616 per $100 of assessed value. This represents $ 16.16 per $100,000 of assessed value, resulting in a decrease of $ 0.03 when compared to last year’s property tax rate of $16.19.

RESOLUTIONS
a) Resolution No. 2025-100
b) Resolution No. 2025-100 Exhibit “A” Certificate and Calculation of Property Tax Rate for fiscal year 2025/26

16 Item5.

RESOLUTION NO. 2025-100

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ESTABLISHING THE PROPERTY

TAX RATE AND FIXED CHARGE ASSESSMENTS FOR
BONDED INDEBTEDNESS FOR FISCAL YEAR 2025/26
WHEREAS, the City Council of the City of Escondido desires to establish the rate of property tax required to generate an amount of revenue from the tax base to provide sufficient moneys to pay debt service on the voter approved bonded indebtedness payable during the fiscal year ending June 30, 2025; and
WHEREAS, the total net taxable secured assessed valuation of the City of Escondido is now estimated at $22,570,922,477 full value; and
WHEREAS, the total net taxable unsecured assessed valuation of the City of Escondido is now estimated at $787,387,559 full value.

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 property tax rate within the City for the City of Escondido General Obligation Refunding Bonds, Series 2015 (Fire, Police, and Emergency Response Measure) for the fiscal year ending June 30, 2026, be and hereby is established at $0.01616 per $100 assessed value.

3. That the City Manager and the Director of Finance are each hereby directed and authorized to take any and all actions necessary to ensure that such property tax rate is enrolled with the County of San Diego Auditor & Controller, including, but not limited to, filing the Tax Amount Rate Certificate attached hereto as Exhibit “A” and is incorporated by this reference. 17 Item5.
$61,520,000

CITY OF ESCONDIDO
San Diego County, California
General Obligation Refunding Bonds, Series 2015
(Fire, Police and Emergency Response Measure)
Resolution No. 2025-100
Exhibit "A"

Page 1 of 2 ends

I, Christina Holmes, hereby certify that I am the Finance Director of the City of Escondido (the "City"), and as such I am authorized to execute this certificate on behalf of the City.

I hereby further certify that in connection with the City's $61,520,000 General Obligation Refunding Bonds, Series 2015 (Fire, Police and Emergency Response Measure) the City Council has adopted the attached Resolution No. 2025-100 establishing the tax rate and fixed charge assessments for bonded indebtedness for 2025/26 and attached herewith is the summary for the calculation of the property tax rate for 2025/26.

IN WITNESS WHEREOF, I hereunto set my hand this 12th day of August, 2025.

CITY OF ESCONDIDO
By
�
Christina Holmes, Director of Finance
18 Item5.

Resolution No. 2025-100
Exhibit "A"

Page 2 of 2 ends

Delinquency FY 25-26
Rate at Tax Rate

3.00% Calculation
Resources Required:

Annual Debt Service Payments:

March 2026 1,019,000.00$
September 2026 3,829,000.00
Total Required 4,848,000.00$
Resources Available:

Cash as of June 30, 2025 4,894,499.97
Debt Service Payment, September 2025 (3,750,625.00)
Payment of Trustee Fees (1,575.00)
Consultant Fees (1,750.00)
Remaining Cash Resources after next Debt Service Payment 1,140,549.97 FY 24-25 Property Tax Revenue Apportionment #12,
not yet recorded in G/L (estimated) 35,826.93
Total Resources Available for FY 25-26 Debt Service Payments 1,176,376.90 Net FY 25-26 Tax Revenues needed for Debt Service Requirement 3,671,623.10 Unsecured Calculation:

FY 25-26 Taxable Unsecured Assessed Valuation for the City - without Homeowners Exemptions 787,387,559.00
Delinquency Factor (23,621,626.77)
Estimated Net Collectible Unsecured Asssessed Valuation 763,765,932.23 FY 24-25 Tax Rate Per $100 of Net Assessed Value 0.017480 Total Unsecured times Tax Rate divided by $100 133,506.28 Total Remaining FY 25-26 Debt Service Coverage Requirement to be Levied against Secured Property 3,538,116.82$
Secured Calculation:

FY 25-26 Taxable Secured Assessed Valuation for the City - without Homeowners Exemptions 22,570,922,477.00
Delinquency Factor (677,127,674.31)
Estimated Net Collectible Secured Asssessed Valuation 21,893,794,802.69 Net FY 25-26 Collectible Taxable Secured Assessed Valuation divided by $100 $218,937,948.03
FY 25-26 Tax Rate per $100 of Net Assessed Value 0.01616 City of Escondido
General Obligation Refunding Bonds, Series 2015
Calculation of Debt Service Requirements
Description
Fiscal Year 2025-26
19 Item5.

STAFF REPORT

July 23, 2025
File Number 0685-10

SUBJECT
SETTING SPECIAL TAX LEVY FOR COMMUNITY FACILITIES DISTRICT NO. 2000-01 (HIDDEN TRAILS)

DEPARTMENT
Finance

RECOMMENDATION
Request the City Council adopt Resolution No. 2025-96, setting the Special Tax Levy for Community Facilities District No. 2000-01 (Hidden Trails) (the “District”) for Fiscal Year 2025-26.

Staff Recommendation: Approval (Finance: Christina Holmes, Director of Finance) Presenter: Christina Holmes, Director of Finance
ESSENTIAL SERVICE –Yes, Internal Requirement
COUNCIL PRIORITY –

FISCAL ANALYSIS

A Special Tax is levied annually on land within Community Facilities District No. 200 0-01 (Hidden Trails) and collected through the County of San Diego Treasurer -Tax Collector’s Office. The funds from the Special Tax are used to meet debt service obligations from the issuance of bonds and fund administrative expenses for the District.

PREVIOUS ACTION

The City Council approved the establishment of Community Facilities District No. 2000-01 (Hidden Trails) on September 20, 2000, and has annually thereafter adopted a Resolution setting the annual Special Tax Levy. Prior year’s Resolution No. 2024-90 was adopted on July 17, 2024.

BACKGROUND

At the request of the property owner/developer and pursuant to the City’s Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts, Community Facilities District No. 20 00-01 (Hidden Trails) was formed and bonds issued for the purpose of acquiring certain backbone facilities including street, water and sewer facilities which were constructed within the Hidden Trails development 20 Item6.

as authorized in Section 6 of the Resolution of Formation No. 2000-241R adopted in March of 2000. As required, the proceeds of the bonds were used only for such authorized purposes. As of September 30, 2005, all proceeds were expended, and the projects completed. As of July 1, 2025, $1,120,000 of principal remain outstanding and the bonds mature on September 1, 2031.

According to the Rate and Method of Apportionment of Special Taxes for Community Facilities District No. 2000-01 (Hidden Trails), a Special Tax shall be levied annually on land within the District and collected in the same manner and at the same time as ordinary ad valorem property taxes . The City is responsible for annually determining the Special Tax liability for each parcel within the District and for providing this information to the County of San Diego in August of every year.

A comparative analysis of the annual Special Tax Levy Calculation for Fiscal Year 2025/26 is presented on Attachment “1”. As noted in the analysis, the 202 5/26 Special Tax Levy requirement decreased from $205,365 by 0.33 percent (%) in the amount of $670.96 or an average of $2.31 per parcel.

RESOLUTIONS

a) Resolution No. 2025-96
b) Resolution No. 2025-96 Exhibit “A” CFD 2000-01 (Hidden Trails) Special Tax Rates

ATTACHMENTS

a) Attachment “1” - CFD 2000-01 (Hidden Trails) Special Tax Levy Comparative Analysis

21 Item6.

RESOLUTION NO. 2025-96

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ACTING AS LEGISLATIVE BODY
OF COMMUN ITY FACILITIES DISTRICT NO. 2000 -01
(HIDDEN TRAILS ), PROVIDING FOR THE LEVY OF AN

ANNUAL SPECIAL TAX FOR SUCH COMMUNITY FACILITIES
DISTRICT FOR FISCAL YEAR 2025-26

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 . 2000 -01 ( Hidden Trails) (the “District”); and
WHEREAS, this Legislative Body, by the adoption of the Ordinance No. 2000-30 (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 rate 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.
22 Item6.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Es condido, acting as the Legislative Body of Community Facilities District No. 2000-01 (Hidden Trails), as follows:

1. That the above recitations are true.

2. That this Legislative Body hereby authorizes and provides for 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 2025-26 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 Special Tax Rates for the District for Fiscal Year 2025-26 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 on or before August 10, or such later date to which the County Auditor may agree, setting forth the amoun t of the Special Tax to be levied on each Taxable Property within the District calculated pursuant to the Ordinance and subject to the limitations set forth in Section 2 above.

4. That th e Special Tax shall be collected in the same manner as ordinary ad v alorem 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 23 Item6.
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 Distri ct 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.

24 Item6.

Resolution No. 2025-96
Exhibit “A”

Page 1 of 1 ends

City of Escondido
Community Facilities District 2000-01
(Hidden Trails)

Special Tax Rates for Fiscal Year 2025/26

Land Use
Categories

Description
Assigned
Special Tax
Proposed Actual
Special Tax*
Category 1** Residential
Property $0.39 per square foot $0.2641 per square foot
Category 2** Other
Property $2,861 per net acre $1,944 per net acre
Category 3 Undeveloped
Property $3,290 per net acre $0.00 per net acre
* Special Tax rates shown above have been rounded to decimals shown, actual tax rates are not rounded.
** 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.

25 Item6.

Attachment "1"
Description $ %
Beginning Balance (07/01) $187,985.23 $195,769.00 $201,453.11 Revenue
Special Taxes 210,375.66 206,617.54
Interest 3,027.37 1,837.08
$213,403.03 $208,454.62 $0.00
Expenditures
Cost of Bonded Indebtedness:

Interest Due 09/01 Reported Fiscal Year 9/1/2023 31,971.88 9/1/2024 29,471.88 9/1/2025 26,709.38 Principal Due 09/01 Reported Fiscal Year 9/1/2023 125,000.00 9/1/2024 130,000.00 9/1/2025 140,000.00 Interest Due 03/01 Reported Fiscal Year 3/1/2024 29,471.88 3/1/2025 26,709.38 3/1/2026 23,646.88 Interest Due 09/01 Pending Year Obligation 9/1/2026 23,646.88 Principal Due 09/01 Pending year Obligation 9/1/2026 145,000.00 Total Principal and Interest Due from Annual Levy $186,443.76 $186,181.26 $359,003.14 Cost of Collection (Proposed Fiscal Year Shown at Maximum) 19,175.50 16,589.25 25,364.84 Available Cash Account Balances to Reduce Levy - - - $19,175.50 $16,589.25 $25,364.84
Total Annual Expenditures 205,619.26 202,770.51 384,367.98 Ending Balance (6/30) 195,769.00 201,453.11 (182,914.87) Calculated Annual Special Tax Requirement $205,552.61 $206,035.96 $182,914.87 Approved / Proposed Levy as Allocated among 290 Parcels $205,550.88 $206,035.96 $205,365.00 ($670.96) -0.33% Average Levy per Dwelling Unit $708.80 $710.47 $708.16 ($2.31) -0.33% City of Escondido CFD 2000-01 (Hidden Trails)
Special Tax Levy Comparative Analysis (Fund 727)
Tax Year 2025-26
Actuals
FY 2023-24
Estimated
Actuals
FY 2024-25
Proposed /
Budget
FY 2025-26
Change from Prior Year
26 Item6.

Attachment "1"
Description $ %
Beginning Balance (07/01) $177,208.85 $180,201.46 $184,572.17 Revenue
Special Taxes 210,841.03 208,531.26
Interest 1,679.59 1,458.71
$212,520.62 $209,989.97 $0.00
Expenditures
Cost of Bonded Indebtedness:

Interest Due 09/01 Reported Fiscal Year 9/1/2022 34,471.88 9/1/2023 31,971.88 9/1/2024 29,471.88 Principal Due 09/01 Reported Fiscal Year 9/1/2022 125,000.00 9/1/2023 125,000.00 9/1/2024 130,000.00 Interest Due 03/01 Reported Fiscal Year 3/1/2023 31,971.88 3/1/2024 29,471.88 3/1/2025 26,709.38 Interest Due 09/01 Pending Year Obligation 9/1/2025 26,709.38 Principal Due 09/01 Pending year Obligation 9/1/2025 140,000.00 Total Principal and Interest Due from Annual Levy $191,443.76 $186,443.76 $352,890.64 Cost of Collection (Proposed Fiscal Year Shown at Maximum) 18,084.25 19,175.50 24,867.49 Available Cash Account Balances to Reduce Levy - - 12,850.00 $18,084.25 $19,175.50 $37,717.49
Total Annual Expenditures 209,528.01 205,619.26 390,608.13 Ending Balance (6/30) 180,201.46 184,572.17 (206,035.96) Calculated Annual Special Tax Requirement $210,563.33 $205,552.61 $206,035.96 Approved / Proposed Levy as Allocated among 290 Parcels $210,561.18 $205,550.88 $206,035.96 $485.08 0.24% Average Levy per Dwelling Unit $726.07 $708.80 $710.47 $1.67 0.24% City of Escondido CFD 2000-01 (Hidden Trails)
Special Tax Levy Comparative Analysis (Fund 727)
Tax Year 2024-25
Actuals
FY 2022-23
Estimated
Actuals
FY 2023-24
Proposed /
Budget
FY 2024-25
Change from Prior Year
27 Item6.

Attachment "1"
Description $ %
Beginning Balance (07/01) $173,650.43 $177,208.85 $177,592.92 Revenue
Special Taxes 206,304.47 209,315.82
Interest 709.46 596.26
$207,013.93 $209,912.08 $0.00
Expenditures
Cost of Bonded Indebtedness:

Interest Due 09/01 Reported Fiscal Year 9/1/2021 36,484.38 9/1/2022 34,471.88 9/1/2023 31,971.88 Principal Due 09/01 Reported Fiscal Year 9/1/2021 115,000.00 9/1/2022 125,000.00 9/1/2023 125,000.00 Interest Due 03/01 Reported Fiscal Year 3/1/2022 34,471.88 3/1/2023 31,971.88 3/1/2024 29,471.88 Interest Due 09/01 Pending Year Obligation 9/1/2024 29,471.88 Principal Due 09/01 Pending year Obligation 9/1/2024 130,000.00 Total Principal and Interest Due from Annual Levy $185,956.26 $191,443.76 $345,915.64 Cost of Collection (Proposed Fiscal Year Shown at Maximum) 17,499.25 18,084.25 24,379.89 Available Cash Account Balances to Reduce Levy - - 12,850.00 $17,499.25 $18,084.25 $37,229.89
Total Annual Expenditures 203,455.51 209,528.01 383,145.53 Ending Balance (6/30) 177,208.85 177,592.92 (205,552.61) Calculated Annual Special Tax Requirement $204,942.20 $210,563.33 $205,552.61 Approved / Proposed Levy as Allocated among 290 Parcels $207,378.16 $210,561.18 $205,550.88 ($5,010.30) -2.38% Average Levy per Dwelling Unit $715.10 $726.07 $708.80 ($17.28) -2.38% Change from Prior Year
Actuals
FY 2021-22
Estimated
Actuals
FY 2022-23
Proposed /
Budget
FY 2023-24
City of Escondido CFD 2000-01 (Hidden Trails)
Special Tax Levy Comparative Analysis (Fund 727)
Tax Year 2023-24
28 Item6.

STAFF REPORT

July 23, 2025
File Number 0685-10

SUBJECT
SETTING SPECIAL TAX LEVY FOR COMMUNITY FACILITIES DISTRICT NO. 2006-01 (EUREKA RANCH)

DEPARTMENT
Finance

RECOMMENDATION
Request the City Council adopt Resolution No. 2025-97, setting the Special Tax Levy for Community Facilities District No. 2006-01 (Eureka Ranch) (the “District”) for Fiscal Year 2025/26.

Staff Recommendation: Approval (Finance: Christina Holmes, Director of Finance) Presenter: Christina Holmes, Director of Finance
ESSENTIAL SERVICE –Yes, Internal Requirement
COUNCIL PRIORITY –

FISCAL ANALYSIS
A Special Tax is levied annually on land within Community Facilities District No. 2006 -01 (Eureka Ranch) and collected through the County of San Diego Treasurer -Tax Collector’s Office. The funds from the Special Tax are used to meet debt service obligations from the issuance of bonds and fund administrative expenses for the District.

PREVIOUS ACTION
The City Council approved the establishment of Community Facilities District No. 2006-01 (Eureka Ranch) on September 27, 2006, and has annually thereafter adopted a resolution setting the annual Special Tax Levy. Prior year’s Resolution No. 2024-91 was adopted on July 17, 2024.

BACKGROUND
At the request of the property owner/developer and pursuant to the City’s Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts, Community Facilities District No. 2006 -01 (Eureka Ranch) was formed and bonds were issu ed for the purpose of providing street, storm drain and sewer improvements as well as utility undergrounding within the Eureka Ranch development and East Valley Parkway area as authorized in Section 6 of the Resolution of Formation No. 2006 -227 adopted in 29 Item7.

September of 2006. As required, the proceeds of the bonds were held in a separate account and used only for such authorized purposes. As of June 30, 2013, all proceeds were expended, and the projects completed. As of July 1, 202 5, $9,445,000 of principal remain outstanding and the bonds mature on September 1, 2036.

According to the Rate and Method of Apportionment of Special Taxes for Community Facilities District No. 2006-01 (Eureka Ranch), a Special Tax shall be levied annually on land within the District and collected in the same manner and at the same time as ordinary ad valorem property taxes. The City is responsible for annually determining the Special Tax liability for each parcel within the District and for providing this information to the County of San Diego in August of every year.

A comparative analysis of the annual Special Tax Levy Calculation for FY2025/26 is presented on Attachment “1”. As noted in the analysis, the FY 2025/26 Special Tax Levy requirement decreased from $1,072,496.32 by 1.02 percent (%) in the amount of $10,967.46 or an average of $32.45 per parcel.

RESOLUTIONS
a) Resolution No. 2025-97
b) Resolution No. 2025 -97 Exhibit “A” CFD 2006 -01 (Eureka Ranch) Special Tax Rates

ATTACHMENTS
a) Attachment “1” - CFD 2006-01 (Eureka Ranch) Special Tax Levy Comparative Analysis 30 Item7.

RESOLUTION NO. 2025-97

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ACTING AS LEGISLATIVE BODY
OF COMMUN ITY FACILITIES DISTRICT NO. 2006 -01
(EUREKA RANCH ), PROVIDING FOR THE LEVY OF AN

ANNUAL SPECIAL TAX FOR SUCH COMMUNITY FACILITIES
DISTRICT FOR FISCAL YEAR 2025-26

WHEREAS, the City Council of the City of Escondido , C alifornia (the “Legislative Body”), has initiated proceedings, held a public hearing, con ducted 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 . 2006 -01 ( Eureka Ranch) (the “District”); and
WHEREAS, this Legislative Body, by the adoption of the Ordinance No. 2006-32 (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 r ates or at a lower rate than the rate 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.
31 Item7.

NOW, THEREFORE, BE I T RESOLVED by the City Council of the City of Escondido, acting as the Legislative Body of Community Facilities District No. 2006-01 (Eureka Ranch), as follows:

1. That the above recitations are true.

3. That the Finance Director is hereby designated and directed to prepare and submit a Certified Parcel List to the County Auditor on or before August 10, or such later date to which the County Auditor may agree, setting forth the amou nt of the Special Tax to be levied on each Taxable Property within the District calculated pursuant to the Ordinance and subject to the limitations set forth in Section 2 above.

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 32 Item7.
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 o f 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.

33 Item7.

Resolution No. 2025-97
Exhibit “A”

Page 1 of 1 ends

City of Escondido
Community Facilities District No. 2006-01
(Eureka Ranch)

Special Tax Rates for Fiscal Year 2025/26

Tax Class
Building
Square
Footage
(“BSF”)
Assigned
Special Tax
Proposed Actual
Special Tax*
Residential Property**:

Tax Class 1 > 3,600 $1.214 per BSF $0.9062 per BSF
Tax Class 2 3,251 – 3,600 $1.275 per BSF $0.9517 per BSF Tax Class 3 2,851 – 3,250 $1.350 per BSF $1.0077 per BSF Tax Class 4 2,551 – 2,850 $1.407 per BSF $1.0502 per BSF Tax Class 5 < 2,550 $1.526 per BSF $1.1391 per BSF
Non-Residential Property**:

Tax Class 6 NA $20,750.00 per Acre $15,488.57 per Acre Undeveloped Property NA $20,750.00 per Acre $0.00 per Acre * Special Tax Rates shown above have been rounded to decimals shown, actual tax rates are not rounded. ** 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.

34 Item7.

Attachment "1"
Description $ %
Beginning Balance (07/01) $819,104.99 $868,763.42 $909,141.22 Revenue
Special Taxes 1,112,091.45 1,101,444.54
Interest 12,438.48 7,693.26
$1,124,529.93 $1,109,137.80 $0.00
Expenditures
Cost of Bonded Indebtedness:

Interest Due 09/01 Reported Fiscal Year 9/1/2023 244,875.00 9/1/2024 231,125.00 9/1/2025 216,750.00 Principal Due 09/01 Reported Fiscal Year 9/1/2023 550,000.00 9/1/2024 575,000.00 9/1/2025 605,000.00 Interest Due 03/01 Reported Fiscal Year 3/1/2024 231,125.00 3/1/2025 216,750.00 3/1/2026 201,625.00 Interest Due 09/01 Pending Year Obligation 9/1/2026 201,625.00 Principal Due 09/01 Pending year Obligation 9/1/2026 635,000.00 Total Principal and Interest Due from Annual Levy $1,026,000.00 $1,022,875.00 $1,860,000.00 Prepayment Bond Call (APN 225-811-13-00) 9/1/2025 $29,748.51 Cost of Collection (Proposed Fiscal Year Shown at Maximum) 48,871.50 45,885.00 58,272.44 Available Cash Account Balances to Reduce Levy 16,296.55 Contingency for Delinquency (Proposed Current Year Only) 6,352.58 48,871.50 45,885.00 $80,921.57
Total Annual Expenditures 1,074,871.50 1,068,760.00 1,970,670.08 Ending Balance (6/30) 868,763.42 909,141.22 (1,061,528.86) Calculated Annual Special Tax Requirement $1,099,143.72 $1,072,496.32 $1,061,528.86 Approved / Proposed Levy as Allocated among 338 Parcels $1,099,142.68 $1,072,496.32 $1,061,528.86 ($10,967.46) -1.02% Average Levy per Dwelling Unit $3,251.90 $3,173.07 $3,140.62 ($32.45) -1.02% Change from Prior Year
Actuals
FY 2023-24
Estimated
Actuals
FY 2024-25
Proposed /
Budget
FY 2025-26
City of Escondido CFD 2006-01 (Eureka Ranch)
Special Tax Levy Comparative Analysis (Fund 728)
Tax Year 2025-26
35 Item7.

STAFF REPORT

July 13, 2025
File Number 0685-10

SUBJECT
SETTING SPECIAL TAX LEVY FOR COMMUNITY FACILITIES DISTRICT NO. 2020-2 (The Villages)

DEPARTMENT
Finance

RECOMMENDATION
Request the City Council adopt Resolution No. 2025-98, setting the Special Tax Levy for Community Facilities District No. 2020-2 (The Villages)(The “District”) for Fiscal Year 2025/26.

Staff Recommendation: Approval (Finance: Christina Holmes, Director of Finance) Presenter: Christina Holmes, Director of Finance
ESSENTIAL SERVICE –Yes, Internal Requirement
COUNCIL PRIORITY –

FISCAL ANALYSIS
A Special Tax is levied annually on land within Community Facilities District No. 2020-2 (The Villages) and collected through the County of San Diego Treasurer -Tax Collector’s Office. The funds from the Special Tax are used to meet debt service obligations from the issuance of bonds and pay administrative expenses for the District.

PREVIOUS ACTION
The Villages Project was approved by the City Council on November 15, 2017.

On May 13, 2020, the City Council adopted Resolution No. 2020 -45 approving the establishment of Community Facilities District No. 2020 -2 (The Villages) and authorizing the Council to annually adopt a resolution setting the Special Tax Levy.

On July 19, 2024, the City Council adopted Resolution No. 2025 -98, setting the Special Tax Levy for Community Facilities District No. 2020 -2 (The Villages) for Fiscal Year 2025/26 on 380 developed lots located in The Villages Project.

BACKGROUND
36 Item8.

A Community Facilities District (“CFD”) is a special taxing district that is formed at the request of a project proponent with the approval of the local jurisdiction. CFD's were established in State Governme nt Code in 1982 (also referred to as the Mello -Roos Act) to provide an alternate method for private property owners to finance the acquisition, construction and maintenance of certain public capital facilities, and/or to cover the related cost of ongoing services.

CFD No. 2020-2 was formed on May 13, 2020, to fund the public facilities fees associated with the Villages Project (“Project”), a development that includes 380 residential homes; recreational, social, and community amenities in a Village Center; a nd approximately 48.9 acres of permanent open space with active greenbelts and 3.5 acres of parks. On June 29, 2022, Special Tax Bonds of $11,945,000 were issued.

Total outstanding principal on the bonds as of July 1, 20 25 is $11,890,000 and the bonds mature on September 1, 2052.

A Maximum Special Tax Rate was established for developed residential property and undeveloped property. The amount of the Maximum Special Tax Rates and Proposed Actual Special Tax Rates for Fiscal Year 2024/25 are attached as Exhibit “A” to Resolution No . 2024-92. The Special Taxes received by the City will be deposited to a separate fund held by the Bank of New York, acting as Trustee, to be used for annual administrative expenses and fund the authorized facilities or future bond debt service payments.

A comparative analysis of the annual Special Tax Levy Calculation for FY202 5/26 is presented on Attachment “1”. As noted in the analysis, the FY 2025/26 Special Tax Levy requirement increased from $652,220.16 by 2.65 percent (%) in the amount of $17,251.88 or an average of $45.40 per parcel.

The delinquency contingency provision for the FY 202 5/26 levy calculation is $3,118.09 This is based on the actual FY 2024/25 2nd installment delinquent summary date June 3, 2025.

RESOLUTIONS
a) Resolution 2025-98
b) Resolution No. 2025-98 Exhibit “A” CFD 2020-2 (The Villages) Special Tax Rates

ATTACHMENTS
a) Attachment “1” - CFD 2020-01 (The Villages) Special Tax Levy Comparative Analysis

37 Item8.

RESOLUTION NO. 2025-98

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ACTING AS LEGISLATIVE
BODY OF COMMUNITY FACILITIES DISTRICT NO. 2020-2
(THE VILLAGES), PROVIDING FOR THE LEVY OF AN

ANNUAL SPECIAL TAX FOR SUCH COMMUNITY
FACILITIES DISTRICT FOR FISCAL YEAR 2025/26

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 quali fied 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. 2020-2 (The Villages) (the “District”); and
WHEREAS, this Legislative Body, by the adoption of the Ordinance No. 2020-11 (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.
38 Item8.

NOW, THEREFORE, BE IT RESOLVED by the City Coun cil of the City of Escondido, acting as the Legislative Body of Community Facilities District No. 2020-2 (The Villages), as follows:

1. That the above recitations are true.

3. That the Finance Director is hereby designated and directed to prepare and submit a Certified Parcel List to the County Auditor on or before August 10, or such later date to which the County Auditor may agree, setting forth the amou nt of the Special Tax to be levied on each Taxable Property within the District calculated pursuant to the Ordinance and subject to the limitations set forth in Section 2 above.

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 39 Item8.
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, o pposite 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, pr omptly 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.

40 Item8.

Developed
Floor Area
> 3,199 sqft
2,950 to 3,199 sqft
2,700 to 2,949 sqft
2,450 to 2,699 sqft
2,200 to 2,449 sqft
1,950 to 2,199 sqft
1,700 to 1,949 sqft
1,450 to 1,699 sqft
< 1,450 sqft
Non-Residential
NA
Backup Special Tax
$0.00 per LotNA
$0.00 per LotNA
$0.00 per LotNA
NA $0.00 per Acre
(1)
(2)
(3)
(4) Dwelling unit or "DU" is as defined in the formation documents.

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.

Special Tax Rates shown above have been rounded to decimals shown, actual tax rates are not rounded.
7 8
9 10
The Assigned Special Tax Rates have been increased by 2% from the tax rates established at the time of formation in accordance with the formation documents.

SUB16-009A
SUB16-009B
SUB16-009C
Undeveloped Property
NA
4 5
Assigned
Special Tax(1)(2)
Proposed Actual
Special Tax(2)(3)
6 Land Use
Category
Residential Property
1 2
3 Exhibit "A"
City of Escondido
Community Facilities District No. 2020-2
(The Villages)
Special Tax Rates for Fiscal Year 2025/26
$3,024.07 per DU(4)
$2,934.64 per DU(4)
$2,834.17 per DU(4)
$2,723.76 per DU(4)
$2,604.52 per DU(4)
$2,308.63 per DU(4)
$2,283.23 per DU(4)
$2,080.08 per DU(4)
$1,953.11 per DU(4)
$26,879.95 per Acre
$26,879.95 per Acre
$2,937.30 per Lot
$2,758.55 per Lot
$2,256.83 per Lot
$19,897.74 per Acre
$2,238.54 per DU(4)
$2,172.34 per DU(4)
$2,097.98 per DU(4)
$2,016.24 per DU(4)
$1,927.98 per DU(4)
$1,708.94 per DU(4)
$1,690.14 per DU(4)
$1,539.76 per DU(4)
$1,445.78 per DU(4)
Resolution No. 2025-98
Exhibit "A"

Page 1 of 1 ends

41 Item8.

Description $ %
Beginning Balance (07/01) $1,482,089.16 $1,459,581.23 $1,449,946.13 Revenue
Special Taxes 634,805.57 661,845.21
Interest 7,054.00 3,977.69
$641,859.57 $665,822.90 $0.00
Expenditures
Cost of Bonded Indebtedness:

Interest Due 09/01 Reported Fiscal Year 9/1/2023 298,625.00 9/1/2024 298,125.00 9/1/2025 297,250.00 Principal Due 09/01 Reported Fiscal Year 9/1/2023 20,000.00 9/1/2024 35,000.00 9/1/2025 45,000.00 Interest Due 03/01 Reported Fiscal Year 3/1/2024 298,125.00 3/1/2025 297,250.00 3/1/2026 296,125.00 Interest Due 09/01 Pending Year Obligation 9/1/2026 296,125.00 Principal Due 09/01 Pending year Obligation 9/1/2026 65,000.00 Total Principal and Interest Due from Annual Levy 616,750.00 630,375.00 $999,500.00 Cost of Collection (Proposed Fiscal Year Shown at Maximum) 47,617.50 45,083.00 59,533.77 Available Cash Account Balances to Reduce Levy 50,423.59 Contingency for Delinquency (Proposed Current Year Only) 3,118.09 $47,617.50 $45,083.00 $113,075.45
Total Annual Expenditures 664,367.50 675,458.00 1,112,575.45 Ending Balance (6/30) 1,459,581.23 1,449,946.13 337,370.68 Reserve Fund Requirement 1,041,636.30 1,041,636.30 1,041,636.30 Calculated Annual Special Tax Requirement $611,312.77 ($104,195.97) ($337,370.68) Approved / Proposed Levy as Allocated among 380 Parcels $611,312.24 $652,221.56 $669,473.44 $17,251.88 2.65% Average Levy per Dwelling Unit $1,608.72 $1,716.37 $1,761.77 $45.40 2.65% Change from Prior Year
Actuals
FY 2023-24
Estimated
Actuals
FY 2024-25
Proposed /
Budget
FY 2025-26
City of Escondido CFD 2020-01 (The Villages)
Special Tax Levy Comparative Analysis (Fund 730)
Tax Year 2025-26
Attachment "1"
42 Item8.

STAFF REPORT

July 23, 2025
File Number 0685-10

SUBJECT
SETTING SPECIAL TAX LEVY FOR COMMUNITY FACILITIES DISTRICT NO. 2022 -1 (ECLIPSE/MOUNTAIN HOUSE)

DEPARTMENT
Finance

RECOMMENDATION
Request the City Council adopt Resolution No. 2025-99, setting the Special Tax Levy for Community Facilities District No. 2022-1(Eclipse/Mountain House) (the “District”) for Fiscal Year 2025/26.

Staff Recommendation: Approval/ Receive and File (Finance: Christina Holmes) Presenter: Christina Holmes
ESSENTIAL SERVICE –Yes, Internal Requirement
COUNCIL PRIORITY –

FISCAL ANALYSIS
A Special Tax will be levied annually on land within Community Facilities District No. 2022-1 (Eclipse/Mountain House) and collected through the County of San Diego Treasurer-Tax Collector’s Office.

The funds from the Special Tax will be used to meet the requirements established at the time of formation of the District.

PREVIOUS ACTION
On May 13, 2021, the City Council authorized a Deposit Account and Reimbursement Agreement between the City of Escondido and CWC Escondido 113, LLC which established the Eclipse (formerly known as Del Prado) zone of the Project.

On August 31, 2021 , the City Council authorized the First Amendment to Deposit Account and Reimbursement Agreement between the City of Escondido and CWC Escondido 113, LLC to include the additional Project, Mountain House, in the CFD No 2022-1. 43 Item9.

The City Council approved the establishment of Community Facilities District No. 2022 -01 (the Eclipse/Mountain House Project) on March 2, 2022, and has annually thereafter adopted a resolution setting the annual Special Tax Levy. Prior year’s Resolution No. 2024-93 was adopted on July 17, 2024.

BACKGROUND
A Community Facilities District (“CFD”) is a special taxing district that is formed at the request of a project proponent with the approval of the local jurisdiction. CFD's were established in State Government Code in 1982 (also refer red to as the Mello -Roos Act) to provide an alternate method for private property owners to finance the acquisition, construction and maintenance of certain public capital facilities, and/or to cover the related cost of ongoing services.

CFD 2022 -1 was for med on March 2, 2022, to fund the public facilities fees associated with the Eclipse/Mountain House Project . The CFD was formed with two distinct zones. Zone A originally contained 81 of the total 113 townhomes in the Eclipse Project. The remaining 32 townhomes were annexed into Zone A of this CFD in December of 2022. Zone B contains the Mountain House Project which includes 36 residential lots. In December of 2023 the developer of Zone B, the Mountain House Project, prepaid the Special Tax obligatio ns with respect to the property in Zone B and, therefore, is no longer subject to the Special Tax.

On April 16, 2024, Special Tax Bonds of $3,350,000 were issued. Total outstanding principal on the bonds as of July 1, 2024 is $3,320,000 and the bonds mature on September 1, 2054.

A comparative analysis of the annual Special Tax Levy Calculation for FY202 5/26 is presented on Attachment A. As noted in the analysis, the FY2025/26 Special Tax Levy requirement decreased from $262,512.10 by 13.66 percent (%) in the amount of $35,724.22 or an average of $316.14 per parcel.

RESOLUTIONS
a) Resolution No. 2025-99
b) Resolution No. 2025 -99 Exhibit “A” CFD 2022 -1 (Eclipse/Mountain House) Special Tax Rates

ATTACHMENTS

a) Attachment “1”—CFD 2022-01 (Eclipse/Mountain House) Special Tax Levy Comparative Analysis
44 Item9.

RESOLUTION NO. 2025-99

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, ACTING AS LEGISLATIVE
BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-1
(ECLIPSE/MOUNTAIN HOUSE ), PROVIDING FOR THE

LEVY OF AN ANNUAL SPECIAL TAX FOR SUCH

COMMUNITY FACILITIES DISTRICT FOR FISCAL YEAR
2025-26

This Community Facilities District is designated as Community Facilities District No . 2022-1 (Eclipse/Mountain House) (the “District”); and
WHEREAS, this Legislative Body, by the adoption of the Ordinance No. 2022-10 (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 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 Au ditor”) on or before August 10 of the applicable tax year.
45 Item9.

NOW, THEREFORE, BE IT RESOL VED by the City Council of the City of Escondido, acting as the legislative body of Community Facilities District No. 2022-1 (Eclipse/Mountain House), as follows:

1. That the above recitations are true.

After adoption of this R esolution, 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 b e 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 on or before August 10, or such later date to which the County Auditor may agree, setting forth the amount of the Special Tax to be levied on each Taxable Property within the District calculated pursuant to the Ordinance and subject to the limitations set forth in Section 2 above.

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 46 Item9.
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, o pposite 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, pr omptly 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.

47 Item9.

Resolution No. 2025-99
Exhibit “A”

Page 1 of 1 ends

City of Escondido Community Facilities District No. 2022-1(1) (Eclipse)
Special Tax Rates for Fiscal Year 2025/26

Land Use
Category Developed Floor Area Unit(2)
Assigned
Special Tax
Proposed Actual
Special Tax (3)
Zone A (Eclipse)
Developed Property
1 Less than 1,200 square feet DU $2,249.20 $1,804.82
2 1,200 to 1,400 square feet DU $2,371.25 $1,902.76
3 Greater than 1,400 square feet DU $2,615.42 $2,098.68 4 Non-Residential PDU $2,558.01 $2,052.60
Backup Special Tax
NA NA DU $2,589.52 $0.00
Undeveloped Property
NA NA PDU $2,589.52 $0.00
1) In December of 2023 the developer of CFD No. 2022-1 Zone B prepaid the Special Tax obligations with respect to the property in Zone B and, therefore, is no longer subject to the Special Tax.
2) Types of units are as defined in the formation documents; Dwelling Unit or “DU”, Projected Dwelling Unit or “PDU” and Lot.
3) The Proposed Actual Special Tax shown above is the authorized levy for the c urrent fiscal year. The submitted actual levy may be reduced as directed by the Finance Director.
48 Item9.

Attachment "1"
Description $ %
Beginning Balance (07/01) $99,937.26 $340,746.76 $410,744.68 Revenue
Special Taxes 199,624.61 260,978.60
Interest 3,798.55 1,403.93
Subtotal Revenue Available to the Repayment of Debt & Admin $203,423.16 $262,382.53 $0.00 Proceeds and Premium from Issuance of Debt 3,442,224.80 (1) Prepayment of Special Taxes (Zone B) (2)
Subtotal Revenue Held in Trust for Reimb / Project Expenditures $3,442,224.80 $0.00 $0.00 Total Annual Revenue and Funds Held in Trust $3,645,647.96 $262,382.53 $0.00 Expenditures
Cost of Bonded Indebtedness:

Interest Due 09/01 Reported Fiscal Year 9/1/2023 0.00 9/1/2024 52,111.11 9/1/2025 83,000.00 Principal Due 09/01 Reported Fiscal Year 9/1/2023 0.00 9/1/2024 30,000.00 9/1/2025 60,000.00 Interest Due 03/01 Reported Fiscal Year 3/1/2024 0.00 3/1/2025 83,000.00 3/1/2026 81,500.00 Interest Due 09/01 Pending Year Obligation 9/1/2026 81,500.00 Principal Due 09/01 Pending year Obligation 9/1/2026 60,000.00 Total Principal and Interest Due from Annual Levy and Avail Funds $0.00 $165,111.11 $366,000.00 Cost of Collection (Proposed Fiscal Year Shown at Maximum) 32,177.50 27,273.50 33,122.42 Available Cash Account Balances to Reduce Levy 9,300.00 9,330.77 9,300.00 5209.97 Contingency for Delinquency (Proposed Current Year Only) 2,079.37 Subtotal Expenditures for the Repayment of Debt & Admin $32,177.50 $27,273.50 $44,532.56 Expenditures on / Reimbursement for Project Costs 3,059,760.96 Expenditures related to the Issuance of Debt 312,900.00 Subtotal Expenditures on Debt Issuance / Project Costs 3,372,660.96 $0.00 Total Annual Expenditures $3,404,838.46 $192,384.61 $410,532.56 Ending Balance (6/30) $340,746.76 $410,744.68 $212.12
Reserve Fund Requirement 226,000.00 226,000.00 226,000.00 Calculated Annual Special Tax Requirement $201,105.90 $261,512.10 ($225,787.88) Approved / Proposed Levy $201,105.90 (3) $261,512.10 $225,787.88 ($35,724.22) -13.66% Number of Dweling Units Levied 81 113 113
Average Levy per Dwelling Unit $2,482.79 $2,314.27 $1,998.12 ($316.14) -13.66% Change from Prior Year
Actuals FY 2023-
24 Estimated
Actuals FY 2023-
24 Proposed / Budget FY 2024-25
City of Escondido CFD 2022-01 (Eclipse MTN House)
Special Tax Levy Comparative Analysis (Fund 731 & Fiscal Agent Accounts) Tax Year 2025-26
49 Item9.
50 Item9.
51 Item9.
52 Item9.
53 Item9.
54 Item9.
55 Item9.

STAFF REPORT

July 23, 2025
File Number 0800-10

SUBJECT

FINAL MAP UNDER CONSIDERATION FOR APPROVAL

DEPARTMENT
Development Services Department

RECOMMENDATION
Request the City Council receive and file notice that a Final Map for Tract PL21-0269 at 916, 942, and 943 Stanley Avenue, and odd numbered addresses between 2005 -2175 Conway Drive, APNs: 224-141- 23, 224-141-24, 224-141-25, 224-142-30, 224-142-31, 224-142-32, and 224 -142-33, has been filed for approval.

BACKGROUND
Pursuant to Escondido Municipal Code (EMC) § 32.303.03, adopted in Ordinance No. 2022 -02, upon receipt of a Final Map, the City Engineer must fully examine its conformity with the approved Tentative Map, and approved alterations thereto; its technical correctness; and, its lawfulness under the EMC.

Further, the City Engineer shall notify the City Council at its next regular meeting that a Final Map is being reviewed for final approval and the City Clerk shall provide notice of any pending approval or disapproval, which notice must be attached and posted with the City Council’s regular agenda and mailed to interested parties. Thereafter, pursuant to the EMC, within 10 days following the City Council meeting, the City Engineer must approve the Final Map if it conforms to all requirements of the EMC applicable at the time of approval and all requirements of the Map Act. EMC § 32.303.03.A(1)-(3).

The following Final Map is under consideration for approval by the City Engineer in accordance with Ordinance No. 2022-02:
56 Item10.

Tract PL21-0269 located at 916, 942, and 943 Stanley Avenue, and odd numbered addresses between 2005-2175 Conway Drive: A 46 Lot Single Family Subdivision that includes 10 Density Bonus Multi-family Condominium Units.

57 Item10.

STAFF REPORT

July 23, 2025
File Number 0470-25; A-3562

SUBJECT
PURCHASE THREE (3) SUTPHEN MONARCH PUMPERS FROM SUTPHEN, INC. OF DUBLIN, OHIO

DEPARTMENT
Public Works Department, Fleet Services

RECOMMENDATION
Request the City Council adopt Resolution No. 2025-101, authorizing the Fleet Services Division to purchase three (3) Sutphen Monarch Fire Engines from Sutphen, Inc. in the amount of $3,922,050.44 through a Cooperative Purchase Contract with Sourcewell. The purchase price includes all taxes, delivery, operator and mechanic training, and all associated fees.

Staff Recommendation: Approval (Joseph Goulart, Director of Public Works) Presenter: Jeramiah Jennings, Fleet Manager
ESSENTIAL SERVICE – Yes, in support of Fire/EMS Services COUNCIL PRIORITY – Improve Public Safety

FISCAL ANALYSIS
Measure I funds are available and were approved for this purchase in the Fiscal Year (“FY”) 2026 Operating Budget.

PREVIOUS ACTION
None

BACKGROUND
Three (3) existing 2006 Type 1 Fire Engines need to be replaced due to meeting their life expectancy of 20 years. Due to continuing supply chain issues, and high demand for new Fire Engines, there is an estimated build time of 36-38 months for these Fire Engines. Upon delivery, the current Fire Engines will be nearly three years overdue for replacement.

Upon approval from the City Council, three (3) Type 1 Fire Engines will be purchased from Sutphen, Inc. of Dublin, Ohio utilizing a Cooperative Purchasing Contract through Sourcewell, Contract No. 113021-SUT, 58 Item11.

as allowed per Chapter 10, Article 5, Section 10-91, of the City of Escondido’s Municipal Code authorizing the purchase of supplies and equipment utilizing cooperative purchase programs.

RESOLUTIONS
a) Resolution No. 2025-101
b) Resolution No. 2025-101 – Exhibit “A” - Cooperative Purchase Quote

59 Item11.

RESOLUTION NO. 2025-101

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR

TO EXECUTE, ON BEHALF OF THE CITY, THE PURCHASE
OF THREE (3) SUTPHEN MONARCH FIRE ENGINES FROM
SUTPHEN, INC. BY UTILIZING A COOPERATIVE

PURCHASE AGREEMENT THROUGH SOURCEWELL, AND

AUTHORIZING THE DISPOSAL OF THE SURPLUS

VEHICLES VIA AUCTION

WHEREAS, the Fleet Services Division is replacing t hree (3) existing fire engines due to the apparatus meeting their standard life expectancy of twenty years, extensive hours of use, their current mechanical condition, and are due for scheduled replacement; and WHEREAS, the Fire Engines due for replacement are t hree (3) 2006 Pierce Fire Engines (unit numbers 3142, 3143, and 3144); and
WHEREAS, SUTPHEN , Inc. of Dublin, Ohio , is the manufacturer of the Sutphen Monarch Fire Engines; and
WHEREAS, Sourcewell conducted a competitive bid process for Fire Apparatus equipment and SUTPHEN, Inc. was deemed to be the lowest responsive bidder; and WHEREAS, the Sourcewell Contract No. is 113021-SUT; and WHEREAS, the City is utilizing cooperative purchasing with Sourcewell, and as per the Escondido Municipal Code Chapter 10 Article 5 Section 10-91, the City may utilize a cooperative purchase contract, which has been conducted in a competitive manner by the State, County or any other Public or Municipal Agency; and
60 Item11.

WHEREAS, staff recommends purchasing three (3) Sutphen Monarch Fire Engines from SUTPHEN, Inc. in the amount of $3,929,050.44, which includes sales tax and all other fees; and WHEREAS, the use of Measure I funds was approved in the fiscal year 2026 budget and are available for this purchase; and
WHEREAS, the purchase price includes base pricing and all options, as shown in Exhibit “A”, which is attached to this Resolution and is incorporated by this reference; and WHEREAS, the Type 1 Fire Engines being replaced by this purchase, as referenced above, are deemed surplus property and are no longer required for public use; and WHEREAS, the City Council desires at this time and deems it to be in the best public interest to authorize the purchase from SUTPHEN, Inc.

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

1. That the above recitations are true.

2. That the City Council is authorized to approve on behalf of the city, the Cooperative Purchase through Sourcewell, as allowed per Escondido Municipal Code Chapter 10 Article 5 Section 10-91.

3. That the City Council a pproves Resolution No. 202 5-101 authorizing Fleet Services Division to purchase three (3) Sutphen Monarch Fire Engines from SUTPHEN Inc. in the amount of $3,929,050.44, which includes sales tax, delivery, operator and mechanic training, and all other fees.

4. That the City Council authorizes the Fleet Services Division to dispose of the surplus vehicles that are being replaced by this purchase via public auction with the City contracted auction company. 61 Item11.

PROPOSAL
TO THE:

Escondido Fire Department
Attn: Fire Chief John Tenger
1163 Centre City Parkway
Escondido CA 92026
DATE: June 6, 2025
We hereby propose and agree to furnish the following firefighting equipment upon your acceptance of this Proposal:

Three (3) Sutphen Heavy Duty Full Custom Monarch Heavy Duty Pumpers Complete and Delivered (less sales tax) for the Total Sum of $3,929,050.44
Th
is proposed price is based on the Sutphen Corporation’s Cooperative Purchasing Contract (“113021SUT.”) with Sourcewell.

The apparatus and equipment being purchased hereunder shall be completed within approximately 36 – 38 months after Sutphen’s receipt and approval of Purchaser’s acceptance of this Proposal.

This Proposal shall be valid for thirty (30) days. If a Purchase Agreement or Purchase Order is not received by Sutphen within 30 days of the date of this Proposal, Sutphen reserves the right to extend, withdraw, or modify this Proposal, including pricing, delivery times, and prepayment discounts, as applicable.

Respectfully submitted,
Scott Barrratt
Scott Barratt

Republic Fire Equipment
Authorized Representative for Sutphen Corporation
760-613-2285
Resolution No. 2025-101
Exhibit "A"

Page 1 of 38 ends

62 Item11.

TERMS & CONDITIONS
Evolving industry conditions and market volatility may materially impact the cost to manufacture fire apparatus. As such, Sutphen reserves the right to impose a price adjustment. The price adjustment will be determined using the Producer Price Index (PPI) – specifically, WPU141106843 the Commodity Data for Heavy Duty Truck Manufacturing: Buses, including military and firefighting vehicles with chassis of own manufacture. The calculation will be based on the PPI value the month of contract execution, compared to the PPI value 12 months prior to the originally slotted production completion date.

If the PPI reflects an increase exceeding 5% over this period, the Purchaser will be subject to a price adjustment equal to the percentage increase in excess of 5%. Sutphen will provide written notice to the Purchaser as soon as it reasonably anticipates the need to apply such adjustment. Upon receipt of such notice, the Purchaser may request to terminate the Agreement; however, acceptance of such termination shall be at Sutphen’s sole and absolute discretion. If the termination request is approved, a cancellation fee equal to 5% of the original contract purchase price will be applied.

Sutphen will use its reasonable best efforts to deliver the apparatus within the timeframe quoted herein, provided that such delivery date shall be automatically extended for delays beyond Sutphen’s control, including, without limitation, strikes, labor disputes, riots, civil unrest, pandemics, war or other military actions, sabotage, government regulations or controls, fire or other casualty, or inability to obtain materials or services. If such delay occurs, Sutphen shall give notice of delay to Purchaser. Purchaser shall not be entitled to any discount or reduction in price for such delay and Sutphen shall not be liable for any damages (compensatory, incidental, consequential or otherwise) related to such delay.

Final payment shall be made at the time of final inspection at the factory. Should payment be delayed, Sutphen reserves the right to charge interest at the rate of one and one-half percent (1.5%) per month, beginning on the day after payment is due.

Delivery, payment, and transfer of the Manufacturer’s Certificate of Origin (MCO) shall take place at Sutphen during final inspection, and upon payment in full in accordance with these terms. Sutphen reserves the right to withhold delivery of the MCO until payment in full is received. If Purchaser requires any third-party equipment mounting, the apparatus shall be moved to the third-party facility by the dealer or Purchaser for such mounting. Such third-party work shall not delay or offset payment to Sutphen. The apparatus shall be tested per NFPA #1900 at Sutphen's manufacturing facility. Purchaser agrees that the apparatus and equipment being purchased hereunder shall not be driven or used in any manner until it is paid for in full. In the event there are any shortages or omissions with the apparatus at time of completion, Purchaser may withhold a sum equivalent to the price of any such shortages as determined by Sutphen.

In the case of any default in payment hereunder or in the payment on any notes, negotiable paper, obligations or other instru ments issued by Purchaser, Sutphen may take full possession of the apparatus and equipment or of the piece or pieces upon which default has been made, and any payments that have been made theretofore shall be applied as rent in full for the use of the apparatus and equipment up to the date of taking possession by Sutphen.

Sutphen warrants to Purchaser that all goods and services furnished hereunder will conform in all respects to the terms of this order, including any applicable change orders, drawings, specifications, or standards incorporated herein, and/or shall be free of defects in materials, workmanship, and free from such defects in design. In addition, Sutphen warrants that the goods and services are suitable for and will perform in accordance with the purposes for which they were intended, for a period of one year from the Warranty Registration Date, unless an extended warranty is purchased.

The purchase price provided for herein does not include any federal, state or local sales tax, duties, imposts, revenues, exc ise or other taxes which may hereafter be imposed by governmental authority or otherwise and which are made applicable to the apparatus or equipment covered by this Proposal. In the event that any such taxes are subsequently imposed and become applicable, the purchase price herein shall be increased by the amount of such taxes and such sum shall be immediately paid by Purchaser to Sutphen. To the extent applicable, the prices and deliveries set forth herein are subject to the Defense Production Act.

Sutphen shall provide insurance insuring the apparatus and equipment against loss by fire, theft, or collision and insuring a gainst property damage and personal injury through the completion of the apparatus and transfer of the Manufacturer’s Certificate of Origin.

After the execution of this Agreement, Purchaser shall have no right to terminate the Agreement. Sutphen may, in its absolute and sole discretion, accept Purchaser’s request to terminate the Agreement. In the event Sutphen accepts Purchaser’s request to terminate the Agreement, Sutphen may charge a cancellation fee. The following charge schedule based on costs incurred may be applied, at Sutphen’s sole discretion:(a) 10% after order is acc epted by Sutphen; (b) 30% of the Purchase Price after production has commenced. The cancellation fee may increase accordingly as costs are incurred as the order progresses through engineering and into manufacturing.

These Terms and Conditions (“T&C”) contained in the Proposal provided herein take precedence over all previous negotiations, oral or written , and no representations or warranties are applicable except as specifically contained in these or in any subsequently signed agreement between the Parties. No waiver of any of the provisions of these T&C shall be deemed a waiver of any other provision, whether similar, nor shall any waiver constitute a continuing waiver. If a Purchase Order is issued, this Proposal, including the Terms and Conditions contained herein, shall supersede the terms in the Purchase Order where terms may be inconsistent.

This Proposal shall be governed and controlled as to interpretation, enforcement, validity, construction, effect and in all other respects by the laws, statutes, and decisions of the State of Ohio. Exclusive jurisdiction and venue for any litigation at all related to this in the Frankli n County Court of Common Pleas, Columbus, Ohio, and the parties hereto consent and submit to the general jurisdiction of this court. All of these T&C shall be binding upon and inure to the benefit of and be enforceable by Sutphen, Purchaser, their successors and assigns.

Resolution No. 2025-101
Exhibit "A"

Page 2 of 38 ends

63 Item11.

Resolution No. 2025-101
Exhibit "A"

Page 3 of 38 ends

64 Item11.

Resolution No. 2023-07
Exhibit "A"

Page 4 of 54 ends

Resolution No. 2025-101
Exhibit "A"

Page 4 of 38 ends

65 Item11.
1 Sutphen
Component Report
Dealership: Republic Fire
Equipment_2 (Scott)
HS- City of Escondido, California
Customized Pumper
Order#: DQ018449-1
Contact: Craig Tebbe
Position: Fire Captain/ APP. COMM. LEAD
Phone: 760-839-5400
Mobile: 760-473-0796
Email: [email protected]

Bill To Ship To
Customer: City of Escondido
Contact: Edid Molina
Address: 201 N. Broadway

Escondido, California 92025
Customer: City of Escondido Fleet Services/Public Works310 N Contact: Jeremiah Jennings, Fleet Superintendent
Address: 475 N. Spruce

Escondido, California 92025

Comments
Project Manager:

Sales Territory Manager: Keith Exel
Sales Person: Scott Barratt - Republic Fire Equipment
Revision Level: Initial Proposal
Truck Type: Full Custom Monarch Cab, Heavy Duty Pumper, PA-12 Aluminum Body Body Facility: Urbana, OH

Quote Line Number 1
Line Item # Qty Item Description/Comments
1 Urbana 1 Facility = Urbana
2 1 **ENG Truck Series = Customized
3 1 **ENG Pump Module Series = Customized Module
4 1 **ENG Electrical System = Point-to-Point
5 Sourcewell 1 Cooperative Purchasing = Sourcewell Cooperative Purchasing Contract “113021SUT” 6 10000230 1 DETAILED WIRING SCHEMATIC (USB)
7 10088888 1 SPECIAL ITEM, Reference HS-7980 - 81
8 1 **CLAR NOTES, Reference HS-7980 - 81 attempt to mirror as much as possible. 9 10001200 1 MAXIMUM APPARATUS HEIGHT = As low as possible 10 1 **ENG Overall Apparatus Height = 10' 1" +/- 2".
11 10001220 1 MAXIMUM APPARATUS LENGTH = As short as possible 12 1 **ENG Overall Apparatus Length = 30' 2" +/- 2".

Resolution No. 2025-101
Exhibit "A"

Page 5 of 38 ends

66 Item11.
2 Line Item # Qty Item Description/Comments
13 10310100 1 CHASSIS

CHASSIS
14 10010006 1 CHASSIS, CUSTOM
15 1 **ENG Modified Wheelbase
16 51070189 1 Wheelbase = 189
17 1 **ENG Wheelbase Note = Wheelbases and component designs may be subject to change pending finalized designs from Cummins on 2027 EPA compliant aftertreatment systems.

18 1 **ENG AF Number = TBD
19 25010100 1 FRAME, 10" DOUBLE RAILS, SINGLE AXLE (50K PSI) 20 45040100 1 FRONT BUMPER CLIP
21 45010001 1 FRONT TOW EYES, BELOW BUMPER, PAINTED
22 45030220 1 ADDITIONAL FRONT TOW EYES, TOP OF BUMPER, PAINTED 23 46010000 1 REAR TOW EYES, PAINTED
24 40010250 1 STEERING - ROSS TAS-85
25 40010500 1 STEERING GEAR WARRANTY, ROSS, 1-YEAR
26 22010050 1 DRIVE LINE, SPICER, 1810 SERIES
27 23015100 1 ENGINE, CUMMINS X10 HHD 450HP DOC-DPF-DEF-SCR OBD 28 23029200 1 ENGINE WARRANTY, 5 YEAR, 100,000 MILES FOR CUMMINS (X SERIES) 29 23029400 1 AFTERTREATMENT WARRANTY, 5 YEAR, 100,000 MILES FOR CUMMINS (X SERIES) 30 23030006 1 AIR INTAKE/EMBER SEPARATOR
31 23031176 1 FUEL FILTER/WATER SEPARATOR, PRIMARY, FLEETGUARD FUEL PRO FH230 32 23031220 1 FUEL FILTER, SECONDARY, FLEETGUARD, FF5825NN 33 47012525 1 TRANSMISSION, ALLISON GEN 6, EVS4000R W/RETARDER (X10HHD, X12, X15) 34 47020100 1 TRANSMISSION WARRANTY, ALLISON, 5 YEARS
35 23110000 1 JACOBS ENGINE BRAKE
36 47024050 1 TRANSMISSION COOLER
37 47030000 1 ALLISON TOUCH PAD SHIFTER
38 47030110 1 SHIFTER PAD GEARING, 6 GEARS OPEN
Resolution No. 2025-101
Exhibit "A"

Page 6 of 38 ends

67 Item11.
3 Line Item # Qty Item Description/Comments
39 21021200 1 COOLING SYSTEM
40 21030195 1 COOLANT FILTER
41 21030000 1 FAN CLUTCH
42 21030200 1 RADIATOR COOLANT RECOVERY, PRESSURIZED SYST 43 47088888 1 SPECIAL ITEM, Allison T-Handle Shifter
44 1 **CLAR NOTES, Reference HS-7980 - 81
45 47088888 1 SPECIAL ITEM, FOOT PEDAL RETARDER CONTROL 46 1 **CLAR NOTES, IOL standard controls, a Hand Control Joystick retarder control will be provided. Located between the driver dash and hood. Reference HS-7980.

47 1
**CLAR NOTES,

48 26010000 1 FUEL TANK, STEEL, 65 GALLON
49 26030000 1 FUEL FILL
50 26030100 1 FUEL COOLER
51 24040000 1 DIESEL EXHAUST FLUID TANK
52 1 **ENG DEF Access = Hinged Door for DEF Access.
53 24530200 1 EXHAUST ADAPTER FOR PLYMOVENT GRABBER SYSTEM 54 13010225 1 ALTERNATOR, LEECE NEVILLE 420 AMP BLP4003 55 13030100 1 LOW VOLTAGE ALARM, FLOYD BELL TXB-V86-515-QF 56 15010520 1 BATTERIES, INTERSTATE TYPE 31 MHD (4) & (2) REMOTE MOUNTED 57 15030300 1 KUSSMAUL STARTGUARD
58 15031700 1 BATTERY JUMPER TERMINALS
59 15031515 1 BATTERY CHARGER, KUSSMAUL CHIEF 4012 W/REMOTE BAR GRAPH DISPLAY 60 1 **ENG Battery Charger Display Location: In driver's seat riser. 61 1 **ENG Battery Charger Note: Chassis Division to provide/install battery charger & Auto Eject (if applicable)

62 15030430 1 120V SHORELINE INLET, KUSSMAUL SUPER 20 AUTO EJECT, 90° OPENING COVER 091-55- 20-120

63 1 **ENG Shoreline Inlet Location = Driver's side of Cab, standard location.

Resolution No. 2025-101
Exhibit "A"

Page 7 of 38 ends

68 Item11.
4 Line Item # Qty Item Description/Comments
64 1 **ENG Shoreline Cover Color = Red.
65 1
**CLAR NOTES, Additional remote batteries are to be isolated and "clean power" for coms and computer systems.

Including all the power and ground studs in the following areas:

Upper command console.

Lower command console.

Forward overhead storage drivers side.

66 14022120 1 FRONT AXLE, HENDRICKSON STEERTEK NXT 20,000 LB. 67 14030120 1 FRONT AXLE WARRANTY, HENDRICKSON, 5 YEARS 68 41022120 1 FRONT SUSPENSION, HENDRICKSON 20,000 LBS. (4) 56" LEAFS 69 41030035 1 FRONT SUSPENSON WARRANTY, HENDRICKSON, 3 YEARS (PAIRED W/HENDRICKSON

REAR SUSPENSION)

70 41040510 1 STEER ASSIST
71 43010306 1 FRONT TIRES, GOODYEAR 385/65R22.5 LRJ ARMOR MAX PRO 22.5 x 12.25 WHEELS 72 14510520 1 REAR AXLE, MERITOR RS-24-160 24,000 LB.
73 14530010 1 REAR AXLE WARRANTY, MERITOR, 3 YEARS
74 14530100 1 TOP SPEED, 68 MPH
75 14530325 1 DRIVER CONTROLLED SIDE-TO-SIDE DIFFERENTIAL LOCK-MERITOR 76 42010010 1 REAR SUSPENSION, HENDRICKSON FIREMAAX 24,000 LBS. AIR RIDE 77 42030035 1 REAR SUSPENSON WARRANTY, HENDRICKSON, 3 YEARS (PAIRED W/HENDRICKSON

FRONT SUSPENSION)

78 44010308 1 REAR TIRES, GOODYEAR 12R22.5 X 8.25 LRH ENDURANCE RSA HIGHWAY 24,000 - 27,000 GVWR

79 42910300 1 TIRE PRESSURE MONITOR, QUICK PRESSURE
80 44210220 1 WHEELS, ALUM, ALCOA, DURABLACK (max 27K rear) 81 44270100 1 HUB COVERS, FRONT & REAR, POLISHED STS (Single Axle) 82 44271100 1 MUD FLAPS, FRONT (PAIR)
83 44271200 1 MUD FLAPS, REAR (PAIR)
84 44088888 1 SPECIAL ITEM, BLACKOUT ITEMS
85 1
**CLAR NOTES, Blackout items -
Front and rear hub cover
Front and rear lug covers

86 16010265 1 BRAKES STEERTEK DISC PLUS EX225 FRONT, MERITOR DISC PLUS EX225 REAR (SINGLE AXLE)

Resolution No. 2025-101
Exhibit "A"

Page 8 of 38 ends

69 Item11.
5 Line Item # Qty Item Description/Comments
87 18010041 1 AIR BRAKE SYSTEM 4 TANKS WABCO 1200 DRYER (24K, 27K) 88 18015000 1 WABCO ABS BRAKING SYSTEM WARRANTY, 3 YEARS /300,000 MILES 89 18030010 1 AIR BRAKE RELEASE VALVE, WABCO
90 18020000 1 CENTRAL LOCATION FOR AIR TANK DRAINS
91 1 **ENG Specify Central Location for Air Tank Drain Valves = Under L1 Compartment 92 18030140 1 AIR INLET CONNECTION W/CHECK VALVE
93 1 **ENG Standard Air Inlet Location = Left hand side of Driver's step well. 94 18030150 1 AUXILIARY AIR INLET CONNECTION
95 1 **ENG Air Inlet Location = STANDARD LOCATION = LEFT HAND SIDE OF DRIVER'S STEP WELL.

96 18033000 1 KUSSMAUL 091-28 AIR EJECT W/FEM COUPLING
97 1 **ENG Air Eject Location = Determined at Pre-Con. 98 1 **ENG Air Eject Cover Color = Yellow.
99 18035110 1 AIR COMPRESSOR, KUSSMAUL AUTO PUMP AC, 100PSI 100 18210000 1 ELEC STABILITY CONTROL SYST
101 18110050 1 WABCO 4 CHANNEL ANTI-LOCK BRAKES W/ASR (24K, 27K) 102 18142000 1 ASR DISCONNECT SWITCH ON DASH
103 53510000 1 COMPRESSION FITTINGS ON AIR SYSTEM (CHASSIS) 104 54010000 1 MISCELLANEOUS ITEMS ON CHASSIS
105 54010010 1 DATA, SAFETY & WARNING TAGS APPLICATION, ADHESIVE 106 54088888 1 SPECIAL ITEM, SPECIAL ITEM, AIR BRAKE SYST 4 TANKS, BENDIX AD-IP AIR DRYER 107 1 **CLAR NOTES, Reference HS-7980
108 10310110 1 CAB
CAB
109 11023250 1 CAB TSAL4E 73" 10" RR 1/2
110 11030025 1 CAB CERTIFICATION - STRUCTURAL INTEGRITY 111 11030950 1 CAB LOCKDOWN LATCHES
112 11031025 1 CAB TILT SYSTEM, AIR CONTROL VALVE
Resolution No. 2025-101
Exhibit "A"

Page 9 of 38 ends

70 Item11.
6 Line Item # Qty Item Description/Comments
113 11031030 1 CAB TILT CONTROL LOCATION, OFFICER'S SIDE PUMP PANEL 114 11031100 1 MANUAL BACK-UP TILT SYSTEM
115 11031355 1 CAB DOORS, BARRIER STYLE (4)
116 11031375 1 CAB DOOR LOCKS, ELECTRIC (KEYLESS ENTRY) 117 11031380 1 KEYLESS ENTRY OVERRIDE
118 11031365 1 LOWER CAB STEP WELLS, RAPTOR (BLACK) & TREADPLATE BACK & SIDE WALLS (EA) (4) 119 11031385 1 CAB STEPS, LOWER GRIP STRUT, INTERMEDIATE DIAMONDPLATE 120 11031399 1 CAB STEP LIGHTING, TECNIQ E45 LED STRIP LIGHTS 121 11031421 1 CAB DOOR WINDOWS, POWER (4)
122 11031401 1 CAB SIDE WINDOWS, FIXED, BOTH SIDES
123 11031460 1 NO WINDOWS, BACK WALL OF CAB
124 11031465 1 WINDOW TINTING (LIMO TINT 8%) - EACH (4) 125 52010010 1 ELECTRIC INTERMITTENT WIPERS
126 52030200 1 WINDSHIELD WASHER RESERVOIR
127 38010215 1 MIRRORS, RAMCO HEATED & REMOTE RGT COWL MNT LFT DOOR MNT 128 11024405 1 UPPER GRILLE, LEVEL STYLE FACADE (X SERIES) 129 11024510 1 FLAMING “S” LOGO, UPPER GRILLE, ILLUMINATED 130 11024615 1 LOWER GRILLE, POLISHED STAINLESS, LASER CUT LETTERING W/ BACKLIGHTING 131 1
**ENG Design for lower grille w/LED backlight = "ESCONDIDO"

Blue LED. (Note: Text cannot be larger than air cut-outs.)

132 32588888 1 SPECIAL ITEM, SPECIAL ITEM, (2) TWO SWITCHES, DRIVER CONTROLS, CAB DOOR

LOCK/UNLOCK, BODY DOOR LOCK/UNLOCK

133 1 **CLAR NOTES, Reference HS-7980
134 20028888 1 SPECIAL Bumper BUMPER, 12" WUI, PAINTED FORMED STEEL CHANNEL 135 1 **CLAR NOTES, Reference HS-7980
136 1 **ENG Siren Speaker Perforations = No Speaker Perforations in Bumper. 137 20029830 1 BUMPER SIDES, PAINTED STEEL, W/POCKET (12-24" EXTENSION) 138 20042140 1 PROTECTIVE BUMPER COATING, RAPTOR, TOP EDGE OF FRONT BUMPER Resolution No. 2025-101
Exhibit "A"

Page 10 of 38 ends

71 Item11.
7 Line Item # Qty Item Description/Comments
139 1 **ENG Protective Bumper Coating Color = Black.
140 12010430 1 AIR HORNS, DUAL, HADLEY E TONE H09318AC ROUND, 18", THRU BUMPER 141 1 **ENG Air Horns Location: Outboard, (1) each side. 142 12030205 1 AIR HORNS WIRED TO STEERING WHEEL BUTTON 143 12040010 1 MOMENTARY SWITCH ON DASH, OFFICER'S SIDE 144 12510109 1 ELEC SIREN, WHELEN 295HFSA7, REMOTE FLUSH MOUNT WITH REMOVABLE MIC 145 12620202 1 SIREN SPEAKER, 100W, WHELEN, SA314B, BLACK FINISH (PAIR) 146 12670110 1 SIREN SPEAKER(S) INSTALLED BEHIND CAB GRILLE 147 32520520 1 HEADLIGHTS, LED, FIRETECH FT-4X6, DUAL STS HOUSINGS (MIXED UPPER WARNING &

TURN SIGNAL)

148 1 **ENG Headlight Interior Finish = Chrome.
149 48010300 1 FRONT TURN SIGNALS, WHELEN 400 SERIES LED (4) (MIXED HOUSING) 150 32530700 1 DAYTIME RUNNING LIGHTS
151 32530754 1 ICC, LED BROW LIGHT INTEGRATED MARKERS
152 1 **CLAR NOTES, Headlight housing bezel exterior finish blackout. 153 27022120 1 HANDRAILS, CAB EXTERIOR, KNURLED STAINLESS STEEL (4) SIDE 154 27030610 1 COAT HOOKS ON UPPER GRAB HANDRAILS, DRIVER'S SIDE (1) 155 27030650 1 COAT HOOKS ON UPPER GRAB HANDRAILS, OFFICER'S SIDE (1) 156 27030710 1 HANDRAILS, FRONT OF CAB, KNURLED STAINLESS STEEL (PAIR) 157 27025000 1 HANDRAILS, CAB INTERIOR, BLACK RUBBER COATED (2) FRONT ENTRY 158 27030120 1 HANDRAILS, REAR CAB INTERIOR DOOR, BLACK RUBBERIZED (2) AND KNURLED STS AT WINDOW (2)

159 27040100 1 INTERIOR DOOR, NYLON STRAP (FRONT & REAR CAB DOORS) 160 11032010 1 EXTERIOR COMPT, SIDE OF EXT CAB, 38" H, DS 161 11031930 1 EXTERIOR DOOR, HINGED, PAINTED
162 11032610 1 DRIVER SIDE, LEFT DOOR HINGE (OPEN TOWARDS FRONT OF CAB) 163 11032410 1 EXTERIOR COMPARTMENT DOOR LOCK
164 11032110 1 OPENING TO DRIVER'S SIDE CREW SEAT COMPT Resolution No. 2025-101
Exhibit "A"

Page 11 of 38 ends

72 Item11.
8 Line Item # Qty Item Description/Comments
165 11032060 1 EXTERIOR COMPT, SIDE OF EXT CAB, 38" H, OS 166 11031930 1 EXTERIOR DOOR, HINGED, PAINTED
167 11032620 1 OFFICER'S SIDE, RIGHT DOOR HINGE (OPEN TOWARDS FRONT OF CAB) 168 11032410 1 EXTERIOR COMPARTMENT DOOR LOCK
169 11032120 1 OPENING TO OFFICER'S SIDE CREW SEAT COMPT 170 11032388 1 SPECIAL ITEM, Extend crew floor into exterior side compartments. 171 1 **CLAR NOTES, Reference HS-7980
172 11032388 1 SPECIAL ITEM, Poly tray under forward facing crew seat compartment 173 1 **CLAR NOTES, Reference HS-7980
174 11035570 1 REAR EXTERIOR WALL EDGES, POLISHED STAINLESS, 1" WIDE, FULL HEIGHT 175 11035420 1 DIAMONDPLATE CAB ROOF 30" x FULL WIDTH
176 31010285 1 INTERIOR, MULTISPEC BLACK SPECKLE PAINT W/GRAY-BLACK DURAWEAR 177 11032929 1 DOOR PANEL, FULL STS
178 31010291 1 CAB INTERIOR FLOOR COVERING, BLACK RUBBERIZED 179 22510100 1 ENGINE ENCLOSURE, FULL LENGTH
180 22510530 1 ENGINE ENCLOSURE COVERING, SCORPION BLACK URETHANE BLEND 181 11031680 1 CENTER CONSOLE W/MAP BOOK STORAGE, TOP OF ENGINE ENCLOSURE 182 22610055 1 ENGINE HOOD LIGHT, LED (2)
183 11031509 1 GLOVE BOX, FDNY STYLE
184 11031702 1 UPPER CREW DOOR AREA, GLOVE BOX HOLDERS (FLAT BACK) 185 31088888 1 SPECIAL ITEM, CLIP BOARD ON GLOVE BOX DOOR 186 1 **CLAR NOTES, Reference HS-7980
187 31088888 1 SPECIAL ITEM, BULLARD QXT BUNDLE
188 1 **CLAR NOTES, Reference HS-7980
189 31088888 1 SPECIAL ITEM, COMMUNICATIONS EQUIPMENT
190 1
**CLAR NOTES, Comms Equipment:

- Motorola APX6500 05 800MHZ two head units

Resolution No. 2025-101
Exhibit "A"

Page 12 of 38 ends

73 Item11.
9 Line Item # Qty Item Description/Comments
- Antenna above for laird A8063 800-896 MHZ 3db, Open coil mobile Antenna 14" - Kenwood NX5700 VHF two head units
- Antenna for above MWV1365S 136-174 MHZNO tune wideband VHF Antenna 21" 191 31088888 1 SPECIAL ITEM, ENGINE HOOD LIGHT, (LED) 1 FIRETECH, FT-CU-AQX WHITE HOUSING

WIRED BATTERY HOT

192 1 **CLAR NOTES,

193 29810100 1 CHASSIS ELECTRICAL DESCRIPTION
194 30010130 1 INSTRUMENTATION, AMETEK W/ CENTER & OVERHEAD CONSOLES

195 1 **ENG Overhead Console Panel's Finish: Black Wrinkle. 196 1
**ENG Overhead Console Position 1 #1 MASTER EMERGENCY
#2 FRONT SCENE
#3 LEFT SCENE
#4 RIGHT SCENE
#5 REAR SCENE
#6 WORK LIGHTS
#7 LEFT ALLEY LIGHT
#8 RIGHT ALLEY LIGHT
#9 GROUND LIGHT SWITCH, ON WITH OR WITHOUT PARK BRAKE SET #10 BLANK

197 1 **ENG Overhead Console Position 2 TRAFFIC ADVISOR CONTROL HEAD 198 1 **ENG Overhead Console Position 3 HVAC CONTROLS, CAMERA MONITOR BELOW HVAC. 199 1 **ENG Overhead Console Position 4 CHASSIS INDICATORS, DOOR OPEN INDICATORS,

SEAT BELT MONITOR, DECK GUN

200 1 **ENG Overhead Console Position 5 FIRECOM CONTROL HEAD 201 1 **ENG Overhead Console Position 6 STEREO AM/FM/WB/BT BOTTOM LEFT. KENWOOD

VHF TOP RIGHT

202 1 **ENG Overhead Console Position 7 STACKED MOTOROLA AUX CONTROL ON TOP LEFT MOTOROLA 800 MHZ BOTTOM LEFT

203 30010508 1 LOWER COMMAND CONSOLE, X10
Resolution No. 2025-101
Exhibit "A"

Page 13 of 38 ends

74 Item11.
10 Line Item # Qty Item Description/Comments

204 1 **ENG Lower Command Console Finish: Black Urethane. 205 1 **ENG Lower Console Panel's Finish: Black Wrinkle. 206 1 **ENG Lower Console Position 1 TRANSMISSION T-HANDLE SHIFTER, SIREN HEAD MOUNTED TO THE LEFT TO THE LEFT OF T-SHIFTER.

207 1
**ENG Lower Console Position 2 #1 JAKE BRAKE ON/OFF
#2 JAKE BRAKE HI/MED/LOW
#3 TRANS RETARDER
#4 HIGH IDLE
#5 CITY HORN/AIR HORN
#6 DCDL ACTIVATION
#7 ASR SWITCH

208 1
**ENG Lower Console Position 3 PARK BRAKE SWITCH
#1 CAB LOCK/UNLOCK
#2 BODY LOCK/UNLOCK

POWER POINTS NOTED BELOW

209 1 **ENG Lower Console Position 4 BLANK
210 1
**ENG Lower Console Position 5 #1 MASTER EMERGENCY
#2 AIR HORN
#3 FRONT SCENE
#4 LEFT SCENE
#5 RIGHT SCENE
#6 REAR SCENE
#7 BLANK

211 30010710 1 CAB PUMP SHIFTER, AIR (FOR HALE G-SERIES PUMP TRANSMISSION) 212 30011000 1 PUMP INTERLOCK, NOT CONNECTED WITH ODOMETER 213 30031610 1 DO NOT MOVE LIGHT, WHELEN TIR3 LED
214 1
**ENG Details for Door Ajar Light = COLOR = RED
LENS COLOR = CLEAR
BEZEL = BLACK

215 1 **ENG Door Ajar Light Location = Centered below upper command console.

Resolution No. 2025-101
Exhibit "A"

Page 14 of 38 ends

75 Item11.
11 Line Item # Qty Item Description/Comments
216 29930200 1 MAPBOOK SLOT ON BREAKER PANEL
217 29910100 1 PROGRAMMABLE LOAD MANAGER, CLASS-1 SUPERNODE II 218 30031100 1 HIGH IDLE SWITCH
219 11040000 1 CAB ACCESSORY FUSE PANEL
220 84541540 1 POWER & GROUND STUDS, UPPER COMMAND CONSOLE 221 1
**ENG Requirements (AMPS) for Power/Ground Studs in Upper Command Console:
(1) 12-volt 60-amp, direct to the battery ignition off. (1) 12-volt 30-amp switched battery first position on ignition switch. (1) 12-volt 30-amp ignition power second position on ignition switch. (1) 12-volt 125-amp ground.

222 84541545 1 POWER & GROUND STUDS, LOWER COMMAND CONSOLE 223 1
**ENG Requirements (AMPS) for Power/Ground Studs in Lower Command Console:
(1) 12-volt 60-amp, direct to the battery. (1) 12-volt 30-amp controlled by the ignition switch. (1) 12-volt 125-amp ground.

224 84541550 1 POWER & GROUND STUDS, UNDER OFFICER'S SEAT 225 1
**ENG Requirements (AMPS) for Power/Ground Studs Under Officers Seat:
(1) 12-volt 40-amp controlled by the battery switch. (1) 12-volt 60-amp controlled by the ignition switch. (1) 12-volt 60-amp, direct to the battery. (1) 12-volt 100-amp ground.

226 30110000 1 VEHICLE DATA RECORDER, AKRON/WELDON
227 30031810 2 12V POWER POINT (2)
228 1 **ENG Power Point Location #1: Lower Console Position 3, Driver’s corner. 229 30031840 3 12V DUAL POWER POINT, USB/USBC, KUSSMAUL (3) 230 30088888 1 SPECIAL ITEM, POWER 7 GROUND STUDS FORWARD OVERHEAD STORAGE, DRIVERS SIDE 231 1
**CLAR NOTES, SPECIAL ITEM, MOVE POWER & GROUND STUDS FROM UNDER OFFICER'S SEAT TO FORWARD OVERHEAD STORAGE, DRIVERS SIDE. Reference HS-7980.

There shall be a minimum of four (4) threaded power studs provided to accommodate the future installation of two-way radio brains.

The studs shall be wired as follows:
• One (1) 12-volt 40-amp controlled by the battery switch • One (1) 12-volt 60-amp controlled by the ignition switch • One (1) 12-volt 60-amp, direct to the battery
• One (1) 12-volt 100-amp ground

This will be "clean power" from the two isolated batteries.

232 1 **CLAR NOTES, Relocate pump shift, Left of steering column under dash. Reference HS- 7980

233 33510030 1 INTERIOR CAB LIGHTS, WHELEN 6" ROUND RED/CLEAR LED (2) Resolution No. 2025-101
Exhibit "A"

Page 15 of 38 ends

76 Item11.
12 Line Item # Qty Item Description/Comments
234 34010030 1 INTERIOR CREW LIGHTS, WHELEN 6" ROUND RED/CLEAR LED (2) 235 28010750 1 DEFROSTER, HEATER & A/C, SEVERE CLIMATE (TM-31) 236 28020500 1 AIR CONDITIONING WARRANTY, 1 YEAR
237 28090003 1 HEAT TO FEET
238 28090100 1 A/C TO FACE
239 28030500 1 DEFROSTER DUCTWORK, ENTIRE WINDSHIELD
240 11031685 1 TOP HEAT/AC STORAGE, MAP BOOK COMPARTMENT 241 38528888 1 SPECIAL Driver's Seat DRIVER'S SEAT, BOSTROM SIERRA HIGH BACK AIR RIDE ABTS (VINYL

PLUS, LOW SEAM)

242 1 **CLAR NOTES, All seating reference HS-7980, Bostrom Sierra High back air ride ABTS (vinyl plus low seam)

243 38340110 1 PRIMARY SEAT POSITION
244 38350100 1 SEAT BELT CONFIGURATION, PULL FROM LEFT SHOULDER TO BUCKLE AT RIGHT HIP 245 38320000 1 HELMET STORED IN COMPARTMENT
246 39028888 1 SPECIAL Officer's Seat OFFICER'S SEAT, BOSTROM SIERRA 500 HIGH BACK ABTS AIR RIDE (VINYL PLUS, LOW SEAM)

247 38340110 1 PRIMARY SEAT POSITION
248 38350200 1 SEAT BELT CONFIGURATION, PULL FROM RIGHT SHOULDER TO BUCKLE AT LEFT HIP 249 39030020 1 OFFICER’S SEAT COMPT, FRONT DOOR
250 38320000 1 HELMET STORED IN COMPARTMENT
251 39528889 1 SPECIAL Crew Seat EMS CABINET, REAR FACING, EXTERIOR HINGED & INTERIOR ROLL-UP

DOOR, DRIVER

252 1
**CLAR NOTES, SPECIAL HEIGHT EMS CABINET REAR FACING BEHIND DRIVER - HEIGHT TO

BE SAME HEIGHT AS HEIGHT OF TOOL MOUNTING PLATE ON TO P OF AC UNIT, APPROX 23" BLACK WEBBING TO BE ATTACHED AT TOP, PLASTIC BUCKLES AT BOTTOM.

253 11032210 1 INTERIOR ACCESS, BLACK WEBBING
254 11032312 1 ADJUSTABLE SHELVES, EMS COMPT (2)
255 39528889 1 SPECIAL Crew Seat 2 EMS CABINET, REAR FACING, EXTERIOR HINGED & INTERIOR ROLL-

UP DOOR, OFFICER

256 1
**CLAR NOTES, SPECIAL HEIGHT EMS CABINET REAR FACING BEHIND OFFICER - HEIGHT

TO BE SAME HEIGHT AS HEIGHT OF TOOL MOUNTING PLATE ON TO P OF AC UNIT, APPROX 23"
BLACK WEBBING TO BE ATTACHED AT TOP, PLASTIC BUCKLES AT BOTTOM.

257 11032210 1 INTERIOR ACCESS, BLACK WEBBING
Resolution No. 2025-101
Exhibit "A"

Page 16 of 38 ends

77 Item11.
13 Line Item # Qty Item Description/Comments
258 11032315 1 ADJUSTABLE SHELVES, NOT PROVIDED
259 39528888 1 SPECIAL Crew Seat 3 BOSTROM SIERRA 500 HIGH BACK ABTS AIR RIDE (VINYL PLUS, LOW SEAM)

260 38340120 1 SECONDARY SEAT POSITION
261 38350100 1 SEAT BELT CONFIGURATION, PULL FROM LEFT SHOULDER TO BUCKLE AT RIGHT HIP 262 38320000 1 HELMET STORED IN COMPARTMENT
263 39528888 1 SPECIAL Crew Seat 4 BOSTROM SIERRA 500 HIGH BACK ABTS AIR RIDE (VINYL PLUS, LOW SEAM)

264 38340120 1 SECONDARY SEAT POSITION
265 38350200 1 SEAT BELT CONFIGURATION, PULL FROM RIGHT SHOULDER TO BUCKLE AT LEFT HIP 266 38320000 1 HELMET STORED IN COMPARTMENT
267 39550100 1 SEAT COLOR, GRAY
268 38410000 1 SEAT BELT WARNING SYSTEM, AKRON / WELDON 269 39710015 1 FULL WIDTH CREW SEAT COMPT, FRONT DROP-DOWN DOORS (73" CAB) 270 39588888 1 SPECIAL ITEM, SPECIAL ITEM, CREW SEAT COMPT, BOLT ON REMOVABLE PANELS WITH GASKET SEALS (73” CAB).

271 1 **CLAR NOTES, Reference HS-7980
272 11031745 1 OVERHEAD STORAGE, FRONT OF 10" RR W/DOORS 273 84541601 1 MOUNTING OF CUSTOMERS RADIO-DUAL HEAD
274 1 **ENG Radio Make & Model = - MOTOROLA APX6500 05 800 MHZ & KENWOOD NXS5700 VHF

275 1 **ENG Radio Head Mounting Location = Overhead Command Console Position 7. 276 1 **ENG Radio Unit Mounting Location = Under Officer's Seat. (Remote Head Radio) 277 84541750 3 INSTALLATION OF 2-WAY RADIO ANTENNA BASE MOUNT W/CABLE (3) 278 1 **ENG Antenna Note: = Chassis to install a PCTEL thick surface mount antenna base w/ 30' coax cable, PN: KE794.

279 1 **ENG Antenna Termination Location #1 = Under Officer's Seat. (Remote Head Radio) 280 1 **ENG Antenna Termination Location #2 = TBD @ Precon. 281 1 **ENG Antenna Termination Location #3 = TBD @ Precon. 282 84541500 1 WIRING OF CAB FOR FUTURE INSTALLATION OF HANDLIGHT CHARGERS OR RADIO

CHARGERS

283 1 **ENG Define location of future components (where does the power need to terminate)? = CUSTOMER WILL INSTALL:

Resolution No. 2025-101
Exhibit "A"

Page 17 of 38 ends

78 Item11.
14 Line Item # Qty Item Description/Comments
(1) KENWOOD DUAL HEAD REMOTE VHF RADIO
(1) MOTOROLA DUAL HEAD REMOTE RADIO
EACH RADIO REMOTE HEAD WILL BE INSTALLED IN THE UPPER CONSOLE AND IN THE L1 BODY COMPARTMENT.

SUTPHEN WILL ORDER AND INSTALL:
- (1) HKNG169 17' Wiring for Motorola Head unit ran from Overhead Storage (crew area, driver
side) to Upper Console Position #7
-(1) HKNG166 75' Wiring for Motorola Head unit ran from Overhead Storage (crew area, driver
side) to L1 body compartment.

Sutphen must order and install
- (1) KCT-71M2 17' Wiring for Kenwood Head unit ran from Overhead Storage (crew area, driver
side) to Upper Console Position #6
-(1) KCT-71A50 50' Wiring for Kenwood Head unit ran from Overhead Storage (crew area, driver
side) to L1 body compartment.

Also need to install
- (2) sets of Speaker wire from Overhead Storage (crew area, driver side) to Upper Console, 1 for EACH RADIO.
284 1
**ENG Power supply wired hot to battery or wired to ignition switch? = ANTENNAS DETAIL:

ENG - Antenna HAF4016A

Sutphen to supply antenna
Antenna Termination Location #1 =
Terminated = Overhead Storage (crew area, driver side)

**ENG - Antenna HAF4013A Sutphen to supply antenna
Antenna Termination Location #2 =
Front Overhead Storage, Driver Side

THIRD ANTENNA POSSIBLY HARADA OR LOW PROFILE(SHARK FIN) TBD AT PRECON

285 30080150 1 HD STEREO, JENSEN, AM/FM/WB/BT
286 84560230 1 CAMERA SYSTEM, SAFETY VISION SV-CLCD0-70 (WIRED) 287 84560330 2 MINI CAMERA, SAFETY VISION SV-200S (2)
288 84560310 2 ADDITIONAL CABLE, SAFETY VISION SV-523 65' (2) 289 1 **ENG Camera Mounting Location Rear of Body.
290 1 **ENG Camera Monitor Mounting Location TBD @ Precon. 291 11088888 1 SPECIAL ITEM, FIRECOM WIRED INTERCOM SYSTEM 292 11088888 1 SPECIAL ITEM, DOUBLE GLOVE BOX HOLDER ON THE CEILING 293 1 **CLAR NOTES, Reference HS-7980
Resolution No. 2025-101
Exhibit "A"

Page 18 of 38 ends

79 Item11.
15 Line Item # Qty Item Description/Comments
294 1 **CLAR NOTES, --Stereo to have recessed speakers above driver and officer 295 10310200 1 PUMP & PLUMBING

PUMP & PLUMBING
296 60012550 1 QMAX-2000 GPM 6" SUCTION SINGLE STAGE PUMP 297 60025000 1 GEARBOX, HALE, G-SERIES, REAR MOUNTED
298 60026020 1 MECHANICAL PUMP SEAL, HALE
299 60031005 1 ALLOY ANODES, HALE (2)
300 60035123 1 PUMP TEST, THIRD PARTY TESTING
301 61510010 1 DELETE AUXILIARY COOLER (HEAT EXCHANGER) 302 62010002 1 STAINLESS STEEL PIPING
303 66020100 1 3" TANK TO PUMP W/CHECK VALVE
304 61720100 1 VALVE, AKRON HEAVY DUTY
305 61770120 1 ACTUATOR, VALVE, PUSH/PULL HANDLE, INNOVATIVE CONTROLS 306 73010201 1 TANK FILL 2"
307 61720100 1 VALVE, AKRON HEAVY DUTY
308 61770120 1 ACTUATOR, VALVE, PUSH/PULL HANDLE, INNOVATIVE CONTROLS 309 61020007 1 PRESSURE GOVERNOR, FIRE RESEARCH, PUMP BOSS MAX 310 61210410 1 INTAKE PRESSURE CONTROL, TFT A1831
311 1 **CLAR NOTES, SET @ 150PSI.
312 63021100 1 6" MAIN SUCTION, LEFT SIDE
313 63035100 1 TFT BALL INTAKE VALVE
314 65030000 1 2.5" LEFT SIDE INLET
315 61720100 1 VALVE, AKRON HEAVY DUTY
316 61770100 1 ACTUATOR, VALVE, SWING HANDLE
317 60036010 1 THREADS, NST
318 63025100 1 6" MAIN SUCTION, RIGHT SIDE
319 63030400 1 HALE MASTER INTAKE VALVE, ELEC
Resolution No. 2025-101
Exhibit "A"

Page 19 of 38 ends

80 Item11.
16 Line Item # Qty Item Description/Comments
320 63060100 1 RELIEF VALVE FOR MIV
321 64030000 1 2.5" RIGHT SIDE INLET
322 61720100 1 VALVE, AKRON HEAVY DUTY
323 61770100 1 ACTUATOR, VALVE, SWING HANDLE
324 60036010 1 THREADS, NST
325 63078888 1 SPECIAL Adapter for Left Suction ADAPTER, 6" NST FE X 4" NST FE, ELBOW W/ DETENT

SWIVEL TFT, W/CAP & CHAIN TRIDENT

326 1
**CLAR NOTES, ADAPTER, 6" NST FE X 4" NST FE, ELBOW W/ DETENT SWIVEL TFT,

W/CAP & CHAIN TRIDENT

TFT Elbow w/ Detent Swivel - 6" (150 mm) NHF Swivel Rocker x 4" (100 mm) NHF Swivel Handle
-(1) AJ7NP-NX AX XXXXXXXX
-(1) PLUG, 4"chrome R/lug w/chain 01.045.0 AX 10070263

327 70525125 1 2.5" DISCHARGE, LEFT - POSITION 1
328 61720100 1 VALVE, AKRON HEAVY DUTY
329 61770110 1 ACTUATOR, VALVE, PUSH/PULL W/RACK& SECTOR 330 77021015 1 GAUGE, DISCH, INNOVATIVE CONTROLS TC SERIES, 2.5" 331 61810150 1 DISCHARGE TERMINATION, 30 DEGREE ELBOW
332 60036010 1 THREADS, NST
333 61840100 1 ADAPTER, 2.5"NST FE X 1.5" NST M W/CAP & CHAIN 334 70525125 1 2.5" DISCHARGE, LEFT - POSITION 2
335 61720100 1 VALVE, AKRON HEAVY DUTY
336 61770110 1 ACTUATOR, VALVE, PUSH/PULL W/RACK& SECTOR 337 77021015 1 GAUGE, DISCH, INNOVATIVE CONTROLS TC SERIES, 2.5" 338 61810150 1 DISCHARGE TERMINATION, 30 DEGREE ELBOW
339 60036010 1 THREADS, NST
340 61840100 1 ADAPTER, 2.5"NST FE X 1.5" NST M W/CAP & CHAIN 341 71025125 1 2.5" DISCHARGE, RIGHT - POSITION 3
342 61720100 1 VALVE, AKRON HEAVY DUTY
343 61770120 1 ACTUATOR, VALVE, PUSH/PULL HANDLE, INNOVATIVE CONTROLS Resolution No. 2025-101
Exhibit "A"

Page 20 of 38 ends

81 Item11.
17 Line Item # Qty Item Description/Comments
344 77021015 1 GAUGE, DISCH, INNOVATIVE CONTROLS TC SERIES, 2.5" 345 61810150 1 DISCHARGE TERMINATION, 30 DEGREE ELBOW
346 60036010 1 THREADS, NST
347 61840100 1 ADAPTER, 2.5"NST FE X 1.5" NST M W/CAP & CHAIN 348 71025130 1 3" DISCHARGE, RIGHT - POSITION 4
349 61720100 1 VALVE, AKRON HEAVY DUTY
350 61770200 1 ACTUATOR, VALVE, AKRON HANDWHEEL
351 77021015 1 GAUGE, DISCH, INNOVATIVE CONTROLS TC SERIES, 2.5" 352 61810160 1 DISCHARGE TERMINATION, STRAIGHT
353 60036010 1 THREADS, NST
354 61888888 1 SPECIAL Adapter for Discharge #4 ADAPTER, 4" NST FE X 4" NST M, 30-DEGREE W/CAP & CHAIN

355 1
**CLAR NOTES, ADAPTER, 4" NST FE X 4" NST M, 30-DEGREE W/CAP & CHAIN

(1) 4.0"F NH swivel x 4.0" M NH 30° 01.058.20 AX 10124131 (1) CAP 4" NST Rocker Lug Chrome W/Chain 01.021.6 AX 10000452

356 71530100 1 DISCHARGE 2.5" VALVE 2.5" PIPE TO LEFT REAR 357 61720100 1 VALVE, AKRON HEAVY DUTY
358 61770120 1 ACTUATOR, VALVE, PUSH/PULL HANDLE, INNOVATIVE CONTROLS 359 77021015 1 GAUGE, DISCH, INNOVATIVE CONTROLS TC SERIES, 2.5" 360 61810150 1 DISCHARGE TERMINATION, 30 DEGREE ELBOW
361 60036010 1 THREADS, NST
362 61840100 1 ADAPTER, 2.5"NST FE X 1.5" NST M W/CAP & CHAIN 363 72230000 1 DISCHARGE 1.5" FRONT BUMPER, 2" PLUMBING 364 61720100 1 VALVE, AKRON HEAVY DUTY
365 61770120 1 ACTUATOR, VALVE, PUSH/PULL HANDLE, INNOVATIVE CONTROLS 366 77021015 1 GAUGE, DISCH, INNOVATIVE CONTROLS TC SERIES, 2.5" 367 60036010 1 THREADS, NST
368 1 **ENG Front Bumper Swivel Location/Side = Driver's side.

Resolution No. 2025-101
Exhibit "A"

Page 21 of 38 ends

82 Item11.
18 Line Item # Qty Item Description/Comments
369 1 **ENG Front Discharge Swivel Location/Trough = Top of Bumper. 370 72240100 1 VERTICAL STOP PINS FOR FRONT BUMPER SWIVEL 371 1 **ENG Vertical Stop Pins = Installed one each side of the front bumper swivel to keep the hose from swinging into the cab.

372 72530100 1 DECK GUN DISCHARGE 3"
373 61720100 1 VALVE, AKRON HEAVY DUTY
374 61770200 1 ACTUATOR, VALVE, AKRON HANDWHEEL
375 77021015 1 GAUGE, DISCH, INNOVATIVE CONTROLS TC SERIES, 2.5" 376 72570110 1 DECK GUN TERMINATION, FLANGED
377 72554800 1 MONITOR, AKRON APOLLO 3423 W/QUAD STACKED TIPS & STREAM SHAPER 378 72570200 1 EXTEND-A-GUN, TASK FORCE TIPS XG18, MANUAL 379 72588888 1 SPECIAL ITEM, DECK GUN STOW MOUNT
380 72822400 1 TWO 1.5" SPEEDLAYS W/LIFTOUT TRAY & ONE 2.5" CROSSLAY (SM) 381 1
**ENG Crosslay Hose Load Requirement = 2.5" Crosslay 200' 2.5" DJ

Two Speedlays 150' each of 1.75" DJ

382 61720100 3 VALVE, AKRON HEAVY DUTY (3)
383 61770120 3 ACTUATOR, VALVE, PUSH/PULL HANDLE, INNOVATIVE CONTROLS (3) 384 77021015 3 GAUGE, DISCH, INNOVATIVE CONTROLS TC SERIES, 2.5" (3) 385 60036010 3 THREADS, NST (3)
386 72854500 2 ADDITIONAL POLY TRAY (EA) (2)
387 72910702 1 COVER, WEBBING FOR SPEEDLAYS
388 1 **ENG Crosslay/Speedlay Side Covers Color = Black. 389 72932230 1 COVER FASTENERS, METAL AIRPLANE LATCHES
390 1 **ENG Specify details for side covers: Number of flaps, fasteners & and how they terminate (manufacturer’s discretion or customer specified?) = OEM Discretion.

391 1
**CLAR NOTES, **ENG Specify details for side covers: Number of flaps, fasteners & and how they terminate
( customer specified) =
CROSSLAY/SPEEDLAY COVER'S, Two (2) cover's per side.

Crosslay tactical webbing covers: Permanently attached at top with metal buckles, female attached to pump, male attached
to webbing.

Resolution No. 2025-101
Exhibit "A"

Page 22 of 38 ends

83 Item11.
19 Line Item # Qty Item Description/Comments
Speedlay: Permanently attached at bottom with metal buckles, female attached to pump, male
attached to webbing.
392 84010005 1 BOOSTER REEL W/150' OF 1" HOSE,NOZZLE & MOUNT 393 61720100 1 VALVE, AKRON HEAVY DUTY
394 61770120 1 ACTUATOR, VALVE, PUSH/PULL HANDLE, INNOVATIVE CONTROLS 395 60036010 1 THREADS, NST
396 1 **ENG Booster Reel Nozzle = Special
397 1 **ENG Booster Reel Nozzle, Special = Booster Reel Nozzle = TFT BUBBLE CUP DS1024BCP 398 80488888 1 SPECIAL ITEM, SECOND SET OF BOOSTER REEL ROLLERS AND A SECOND REWIND SWITCH 399 1 **CLAR NOTES, Reference HS-7980
400 1 **CLAR NOTES,

401 61742000 1 MASTER PUMP DRAIN, MULTIPORT
402 61730005 9 DRAIN VALVES, INNOVATIVE CONTROLS, LIFT-UP (9) 403 10310210 1 FOAM SYSTEM

FOAM SYSTEM
404 73570305 1 FOAM SYSTEM, FOAMPRO 2001, 2.6 GPM
405 73572110 1 FOAM SYSTEM WARRANTY, FOAMPRO, 2 YEARS
406 1 **ENG Class of Foam = Class A Foam
407 73531400 1 FOAM TANK 25 GALLON BUILT INTO BOOSTER TANK 408 1
**CLAR NOTES, **CLAR NOTES, FOAM CAPABLE DISCHARGES (6) Customer desires the following discharges be foam capable:

Booster Reel

FRONT BUMPER

2.5" Transverse Pre-connect
Upper Speedlay
Lower Speedlay
Rear 2.5" Discharge
Customer is aware system will not supply all of these discharges accurately as system is

2.6 gpm.

409 73576720 1 QUARTER TURN VALVE, MANUAL FOAM FLUSH
410 1 **ENG Foam Plumbed to Left Rear Discharge True
411 1 **ENG Foam Plumbed to Front Bumper Discharge True Resolution No. 2025-101
Exhibit "A"

Page 23 of 38 ends

84 Item11.
20 Line Item # Qty Item Description/Comments
412 1 **ENG Foam Plumbed to 1st Crosslay/Speedlay True 413 1 **ENG Foam Plumbed to 2nd Crosslay/Speedlay True 414 1 **ENG Foam Plumbed to 3rd Crosslay/Speedlay True 415 1 **ENG Foam Plumbed to Booster Reel True
416 73580006 1 FOAM PLUMBED TO SIX DISCHARGES
417 10310220 1 PUMP PANEL

PUMP PANEL
418 74910130 1 PA SM3 - SIDE MOUNT PUMP PANEL
419 74930540 1 PANEL FINISH, BLACK RAPTOR
420 1 **ENG Pump Panel Label Verbiage Standard = Yes.
421 74931000 1 ESCUTCHEON PLATES
422 74931050 1 COLOR CODING
423 1 **ENG Color Coding Standard = Yes.
424 74931200 1 PUMP MODULE FRAMEWORK, PAINTED BY SUTPHEN 425 1 **ENG Painted Framework = Match Truck Color.
426 74931310 1 PUMP FINISH, PAINTED BY PUMP MFG
427 74931520 1 PLUMBING FINISH, NON-PAINTED
428 1 **ENG Non-Painted Plumbing = Stainless steel welds shall be treated/coated. 429 74931660 1 EXTERIOR DUNNAGE AREA PANEL, BLACK RAPTOR 430 75088888 1 SPECIAL ITEM, 47" PUMP PANEL
431 75040230 1 FLOATING TROUGH IN RUNNING BOARD, BOTH SIDES 432 1 **ENG Running Board Trough Cover = Velcro Straps. 433 75088888 1 SPECIAL ITEM, SPECIALTY TROUGHS
434 1 **CLAR NOTES, Reference HS-7980
435 75510200 1 PUMP OPERATOR LIGHTS, WELDON 2631 LED
436 75530100 1 PUMP PANEL LIGHTS OFFICER'S SIDE, WELDON 2631 LED 437 76010105 1 PUMP PANEL GAUGES & CONTROLS
Resolution No. 2025-101
Exhibit "A"

Page 24 of 38 ends

85 Item11.
21 Line Item # Qty Item Description/Comments
438 60028070 1 PUMP PRIMER, TRIDENT, AUTO
439 76025100 1 COMPRESSION FITTINGS ON AIR SYSTEM (CTZ PUMP MODULE) 440 76031960 1 AIR OUTLET, BOTH SIDES OF PUMP PANEL, WITH 25' OF HOSE 441 76030805 1 HALE TRV-L THERMAL RELIEF VALVE WITH LIGHT AT PUMP PANEL 442 76031900 1 AIR HORN PUSH BUTTON SWITCH ON PUMP PANEL 443 1 **ENG Air Horn Push Button Location = Driver Side - Standard 444 75588888 1 SPECIAL ITEM, Air Horn Switch, Both Sides 445 76520100 1 GAUGES, MASTER, CLASS 1 4.5"
446 77510080 1 GAUGE, WATER LEVEL, CLASS 1, INTELLI-TANK ITL-4 447 77532112 1 GAUGE, WATER LEVEL, WHELEN PSTANK2 LED (2) 448 1 **ENG Whelen Gauge Locations = Driver's side of Cab, behind Crew Door, high. 449 1 **ENG Whelen Gauge Locations = Officer's side of Cab, behind Crew Door, high. 450 1 **ENG Whelen Water Level Gauge Color = Multi Color. 451 77540155 1 GAUGE, FOAM LEVEL, CLASS 1, INTELLI-TANK ITL-4 452 1 **ENG Class of Foam for Foam Gauge = Class A.
453 10310230 1 WATER TANK

WATER TANK
454 83525200 1 WATER TANK BRAND, UPF
455 83510105 1 WATER TANK, 750 GAL, POLY
456 83530130 1 WATER TANK WARRANTY, UPF, LIFETIME
457 10310300 1 BODY
BODY
458 80029900 1 BODY SUBFRAME, PUMPER/TANKER
459 80110420 1 BODY PA-12 RES 43/53, LAD CHUTE
460 80245012 1 UPPER HATCH COMPARTMENT, LEFT & RIGHT SIDES 461 10310302 1 BODY COMPARTMENTS

BODY COMPARTMENTS
Resolution No. 2025-101
Exhibit "A"

Page 25 of 38 ends

86 Item11.
22 Line Item # Qty Item Description/Comments

462 81130200 1 ADJUSTABLE SHELF [L1] (1) 463 81150100 2 250# ROLL OUT DRAWER ADJUSTABLE TRACK [L1] (2) 464 80250100 1 TURTLE TILE ON COMPT FLOOR, SHELF, TRAY OR DRAWER [L1] (1) 465 80280410 1 3/16" ALUMINUM MOUNTING PLATE (PER WALL) [L1] (1) 466 80250100 1 TURTLE TILE ON COMPT FLOOR, SHELF, TRAY OR DRAWER [L2] (1) 467 80280410 1 3/16" ALUMINUM MOUNTING PLATE (PER WALL) [L2] (1) 468 81130200 2 ADJUSTABLE SHELF [L3] (2) 469 81140100 1 FIXED VERTICAL DIVIDER [L3] (1)
470 81150000 1 250# ADJUSTABLE VERTICAL SLIDE-OUT PANEL [L3] (1) 471 80250100 1 TURTLE TILE ON COMPT FLOOR, SHELF, TRAY OR DRAWER [L3] (1) 472 80280410 2 3/16" ALUMINUM MOUNTING PLATE (PER WALL) [L3] (2) 473 81130200 1 ADJUSTABLE SHELF [R1] (1) 474 80250100 1 TURTLE TILE ON COMPT FLOOR, SHELF, TRAY OR DRAWER [R1] (1) 475 80280410 1 3/16" ALUMINUM MOUNTING PLATE (PER WALL) [R1] (1) 476 81088888 1 SPECIAL ITEM, LAYOUT DESCRIPTION
Resolution No. 2025-101
Exhibit "A"

Page 26 of 38 ends

87 Item11.
23 Line Item # Qty Item Description/Comments
477 1
**CLAR NOTES, LAYOUT DESCRIPTION

ADJUSTABLE SHELF - shallow depth portion of compartment,

1 = Shallow 1 = Full

3/16" ALUMINUM MOUNTING PLATE (PER WALL) [R1] (1),

Location = Back Wall, High

478 81088888 1 SPECIAL ITEM, SPECIAL ITEM, BOXED IN OPENNING BETWEEN R1 AND R2 COMPARTMENT, UP TO 10" WIDE X UP TO 24" TALL

479 1 **CLAR NOTES, Reference HS-7980 - 81.
480 81088888 1 SPECIAL ITEM, SPECIAL ITEM, FMI DOUBLE FIRE EXTINGUISHER TILT OUT BRACKET, BODY COMPT

481 1
**CLAR NOTES, SPECIAL ITEM, FMI DOUBLE FIRE EXTINGUISHER TILT OUT BRACKET, BODY COMPT.

**ENG FMI tilt double extinguisher on right side of floor Final location determined at mid inspection

482 81088888 1 SPECIAL ITEM, SPECIAL ITEM, FMI SINGLE FIRE EXTINGUISHER TILT OUT BRACKET, BODY COMPT

483 1
**CLAR NOTES, SPECIAL ITEM, FMI SINGLE FIRE EXTINGUISHER TILT OUT BRACKET, BODY COMPT.
**ENG FMI tilt double extinguisher on left side of floor Final location d e t e r m i n e d at mid inspection.

484 80250100 1 TURTLE TILE ON COMPT FLOOR, SHELF, TRAY OR DRAWER [R2] (1) 485 80280410 1 3/16" ALUMINUM MOUNTING PLATE (PER WALL) [R2] (1) 486 81088888 1 SPECIAL ITEM, SPECIAL ITEM, BOXED IN OPENNING BETWEEN R2 AND R3 COMPARTMENT, UP TO 10" WIDE X UP TO 24" TALL

487 1 **CLAR NOTES, Reference HS-7980 - 81
488 81130200 2 ADJUSTABLE SHELF [R3] (2) 489 81140100 1 FIXED VERTICAL DIVIDER [R3] (1)
490 81150305 1 600# SLIDE-MASTER TRAY, 100% SLIDEOUT [R3] (1) 491 80250100 1 TURTLE TILE ON COMPT FLOOR, SHELF, TRAY OR DRAWER [R3] (1) 492 80280410 1 3/16" ALUMINUM MOUNTING PLATE (PER WALL) [R3] (1) 493 81130200 1 ADJUSTABLE SHELF [A1] (1) 494 80250100 1 TURTLE TILE ON COMPT FLOOR, SHELF, TRAY OR DRAWER [A1] (1) 495 1 **ENG Turtle Tile Color = Black
Resolution No. 2025-101
Exhibit "A"

Page 27 of 38 ends

88 Item11.
24 Line Item # Qty Item Description/Comments
496 81165705 1 UNISTRUT TRACK IN COMPTS
497 80220140 1 COMPT DOORS, AMDOR ROLL-UP, PAINTED
498 80230610 1 DOOR SILL PROTECTION, BODY COMPTS, AMDOR SILL PLATE (SINGLE AXLE BODY) 499 80225100 1 REAR COMPT DOOR (A1) AMDOR ROLL-UP, SATIN FINISH 500 80230920 1 ROLL UP DOORS WARRANTY, AMDOR, 3 YEARS
501 80230660 1 DOOR SILL PROTECTION, REAR COMPT, PROTEC, CLEAR FILM 502 80230008 7 PULL CORDS FOR ROLL-UP DOORS (7)
503 1 **ENG Doors to have pull cords = All
504 80230003 7 ROLL-UP DOOR DRIP PAN/GUARD (WITH DRAIN) (7) 505 80230300 1 COMPT INTERIOR FINISH, SMOOTH
506 80230200 7 COMPT DOOR LOCKS, KEYED ALIKE (7)
507 84531110 1 COMPT LIGHTING, AMDOR LED LIGHT STRIPS, 2 PER COMPT 508 80288888 1 SPECIAL ITEM, BODY MODIFICATION
509 1 **CLAR NOTES, Replicate HS-7980 as close as possible 510 80288888 1 SPECIAL ITEM, COMPT DOOR LOCKS KEYED ALIKE 511 1 **CLAR NOTES, All compartment doors to be keyed alike. 1250 KEY CODE.

512 80288888 1 SPECIAL ITEM, ELECTRONIC BODY DOOR LOCKS 513 80288888 1 SPECIAL ITEM, TURTLE TILE SECURED
514 80288888 1 SPECIAL ITEM, LADDER CHUTE COMPLIMENT
515 1 **CLAR NOTES, Ladders are to match HS-7980 -81.
516 10310305 1 BODY EXTERIOR

BODY EXTERIOR
517 81310000 1 HOSEBED, ALUM FLOORING
518 1
**ENG List the Hose Bed Hose Load Req. = REFERENCE HS-7980 -81.

HOSEBED LOAD

1000' 4" DJ
X2 400' 2.5" DJ
X2 Highrise Bundles & Gazner Packs

Resolution No. 2025-101
Exhibit "A"

Page 28 of 38 ends

89 Item11.
25 Line Item # Qty Item Description/Comments
519 81330100 1 STANDARD HOSEBED HEIGHT
520 81410200 1 COVER, ALUMINUM 2 PC, MAIN HOSE BED
521 81331155 1 ALUM HOSEBED COVER SUPPORT, REMOVABLE REAR 522 81431210 1 REAR HOSEBED COVER, WEBBING
523 1 **ENG Hosebed Cover Color = Black.
524 81440230 1 COVER FASTENERS, METAL AIRPLANE LATCHES
525 81330304 1 HOSE BED DIVIDERS, ADJ (4)
526 81331115 1 REMOVABLE SUPPORT BAR FOR REAR HOSEBED COVER 527 81332115 1 HOSEBED LIGHTING, SIDES, TECNIQ E44 LED LIGHT STRIPS 528 81388888 1 SPECIAL ITEM, GAZNER PACK STORAGE
529 1
**CLAR NOTES, Gazner pack storage, above A1 compartment, size 22" wide 16" tall 39" deep, "D" handle latch with door prop, bottom surface to incorporate a plastic sliding surface.

Reference HS-7980-81.

530 81388888 1 SPECIAL ITEM, HOSEBED BULKHEAD AREA MOUNTING REINFORCEMENT 531 1 **CLAR NOTES, Reference HS-7980
532 81910100 1 HANDRAILS, KNURLED STS
533 82210000 1 STEPS, FRONT BODY, IC FOLD DOWN W/LIGHT (ALUM PUMPERS) 534 1 **ENG Step Light Color = Blue.
535 82310000 1 STEPS, REAR BODY (14x11 & 14x8)
536 89988888 1 SPECIAL ITEM, SPECIAL ITEM, SUTPHEN FABRICATED I-ZONE HOSE HOOKS MOUNTED AT

REAR OF APPARATUS

537 1 **CLAR NOTES, Reference HS-7980
538 82510000 1 RUB RAILS, ANODIZED ALUM
539 83010050 1 ALUMINUM TREADPLATE (PUMPER/TANKER)
540 83030315 1 REAR STEP/TAILBOARD CORNERS, 45 DEGREE
541 83030425 2 GRIP STRUT ON RUNNING BOARD (2)
542 83030450 1 GRIP STRUT ON REAR STEP
543 83030710 1 REAR FENDERS, ALUMINUM SMOOTH PAINTED
Resolution No. 2025-101
Exhibit "A"

Page 29 of 38 ends

90 Item11.
26 Line Item # Qty Item Description/Comments
544 80290051 1 8 SCBA CYLINDER COMPTS (2 TRIPLE-FMI, 2 SINGLES-SIG4) 545 1
**ENG Triple Bottle Compartment Location = Triple Bottle Compartments = Front of wheel well each side
Single Bottle Compartments = Rear of wheel well each side

546 80290310 2 DOOR FINISH, BRUSHED STAINLESS, SINGLE/DOUBLE SCBA COMPT (2) 547 80290420 2 DOOR FINISH, BRUSHED STAINLESS, TRIPLE SCBA COMPT (2) 548 88520300 1 DELETE 6" SUCTION HOSE
549 88540550 1 DELETE STD SUCTION HOSE MTG
550 88550300 1 STRAINER NOT PROVIDED
551 89988888 1 SPECIAL ITEM, FLIP-UP TAILBOARD
552 1 **CLAR NOTES, Reference HS-7980
553 89988888 1 SPECIAL ITEM, RUB RAIL REFLECTIVE STRIPING 554 1 **CLAR NOTES, Reference HS-7980
555 89010000 1 LADDERS, DUO-SAFETY 900A 24'2-SEC & 775A 14' ROOF & 10' FOLDING 556 89510200 1 LADDER CHUTE
557 89520220 1 LADDER ENCLOSURE, SMOOTH ALUM DOOR
558 89088888 1 SPECIAL ITEM, LADDER CHUTE W/BACKBOARD STORAGE & PIKE POLE STORAGE 559 1
**CLAR NOTES, LADDER CHUTE W/BACKBOARD STORAGE & PIKE POLE STORAGE:

**ENG Items that need addressed

1. Issue with roof ladder section, roof hooks getting caught.

Issue Pike pole storage: Al three tubes to be flush with holder, notching is not needed.

Recessed deep enough for door to shut with pike poles installed.

Center tube needs to have a stop at X" depth. This location for the 60" Pinch Bar Delete the LED strip light

5. Door open switch needs moved, possibly top right or bottom right.

Add door open prop or spring-loaded hinge to keep door open. TO FIT ALSO:
1 10' pike pole
1 NY Hook
1 60" Pinch Bar, located in the middle tube

560 10310310 1 ELECTRICAL

ELECTRICAL
561 84550110 1 LICENSE PLATE BRACKET W/ LIGHT, LED
562 84511100 1 BODY ELECTRICAL DESCRIPTION
563 84520000 1 BACK UP ALARM, ECCO SA917
Resolution No. 2025-101
Exhibit "A"

Page 30 of 38 ends

91 Item11.
27 Line Item # Qty Item Description/Comments
564 85010302 1 TAILLIGHTS, WHELEN 600 SERIES, LED STOP/TAIL/TURN/REVERSE, QUAD HOUSING (PAIR) 565 1 **ENG Tail Light Housing Color = Black.
566 85110100 1 ICC LIGHTS, LED
567 85510200 1 STEP LIGHTS, LED, REAR BODY & WHELEN 2G AT PUMP PANEL 568 85710010 1 UNDERCARRIAGE GROUND LIGHTS, TRUCK-LITE #44042C LED 569 86520300 1 REAR WORK LIGHTS, (2) FIRETECH WL-2000-F-B, LED 570 86600000 1 OPTICAL WARNING SYSTEM, UPPER (PUMPER)

571 86610120 1 UPPER WARNING LIGHTS, ZONE A (FRONT), WHELEN FREEDOM IV 72" LED LIGHT BAR, F4N7QLED, 12 MODULES

572 1 **ENG Zone A, Upper Lightbar Color / Details = Standard. 573 86928888 1 SPECIAL Opticom2 SPECIAL ITEM, THOMAR PREEMTION T792HL-LOPRO-RW Resolution No. 2025-101
Exhibit "A"

Page 31 of 38 ends

92 Item11.
28 Line Item # Qty Item Description/Comments
574 1 **CLAR NOTES, Reference HS-7980
575 86699998 1 UPPER WARNING LIGHTS, ZONE B (OFFICER'S SIDE), COVERED BY ZONES A & C (Surface Mount)

576 86710300 1 UPPER WARNING LIGHTS, ZONE C (REAR), WHELEN LED, 900 SERIES SURFACE MOUNT, 90**5F*R (QTY 4)

577 1 **ENG Zone C, Upper Rear Beacon Color/Details = Color = Red Lens Color = Red

578 86899998 1 UPPER WARNING LIGHTS, ZONE D (DRIVER'S SIDE), COVERED BY ZONES A & C (Surface Mount)

579 87100000 1 OPTICAL WARNING SYSTEM, LOWER (PUMPER)

580 87110110 1 LOWER WARNING LIGHTS, ZONE A (FRONT), WHELEN 600 SUPER LED, 60*02F*R (QTY 4) 581 1
**ENG Zone A, Lower Warning Light Color, Lens Color, Details = Color = Red Lens Color = Red
(2) Inboard lights to be Steady Burn

582 87811130 1 LOWER, ZONE A - MOUNTING LOCATION (DUAL HOUSINGS) 583 1 **ENG Zone A, Lower - Front, Mounting Location = (2) Warnings in top headlight housing, each side.

584 87210130 1 LOWER WARNING LIGHTS, ZONE B (OFFICER'S SIDE), WHELEN 600 SUPER LED, 60*02F*R (QTY 1), WHELEN 500 SUPER LED, 50*02F*R (QTY 1), ION T-SERIES LED, TLI* (QTY 1)

585 1 **ENG Zone B, Lower Officer's Side Warning Light Color, Lens Color, Details = TBD Resolution No. 2025-101
Exhibit "A"

Page 32 of 38 ends

93 Item11.
29 Line Item # Qty Item Description/Comments
586 87812110 1 LOWER, ZONE B - MOUNTING LOCATION (PUMPERS, TANKERS, RESCUES) 587 1
**ENG Zone B, Lower - Officer's Side, Mounting Location = -(1) Warning Light near the front corner of the Apparatus. -(1) Warning Light near the rear Axle. -(1) Warning Light near the rear corner of the Apparatus. -Reference Shop Order Drawing for lights and placement.

588 87310100 1 LOWER WARNING LIGHTS, ZONE C (REAR), WHELEN 600 SUPER LED, 60*02F*R (QTY 2) 589 1 **ENG Zone C, Lower Rear Warning Light Color, Lens Color, Details = TBD 590 87410130 1 LOWER WARNING LIGHTS, ZONE D (DRIVER'S SIDE), WHELEN 600 SUPER LED, 60*02F*R (QTY 1), WHELEN 500 SUPER LED, 50*02F*R (QTY 1), ION T-SERIES LED, TLI* (QTY 1)

591 1 **ENG Zone D, Lower Driver's Side Warning Light Color, Lens Color, Details = TBD 592 87814110 1 LOWER, ZONE D - MOUNTING LOCATION (PUMPERS, TANKERS, RESCUES) 593 1
**ENG Zone D, Lower - Driver's Side, Mounting Location = -(1) Warning Light near the front corner of the Apparatus. -(1) Warning Light near the rear Axle. -(1) Warning Light near the rear corner of the Apparatus. -Reference Shop Order Drawing for lights and placement.

594 87037238 1 ADDITIONAL LIGHTBARS, WHELEN MINI FREEDOM IV 21" LED LIGHT BARS, F4NMINI (PAIR)

595 1
**ENG Light Bar Light Layout = Red -(1) White
Lens Color = Clear
Per Mini light bar
REFERENCE HS-7980-81.

596 1 **ENG Light Bar Mounting Location = Installed on the lower roof.

REFERENCE HS-7980-81.

597 87537732 2 ADDITIONAL WARNING LIGHTS, WHELEN 600 SUPER LED, 60*02F*R (PAIR) (2) 598 1 **ENG Whelen 600 LED Warning Light Color = Red.
599 1
**ENG Whelen 600 LED Mounting Location = Mounting Location = -(1) Pair = Above Front Axle, 1 each side 578 -(1) Pair = Front Bumper Side Pockets Color = Red Lens Color = Red Bezel = Black

600 87537742 1 ADDITIONAL WARNING LIGHTS, WHELEN 900 SERIES LED, 90**5F*R (PAIR) (1) 601 1 **ENG Whelen 900 LED Warning Light Color = Red.
602 1 **ENG Whelen 900 LED Lens Color = Red.
603 1
**ENG Whelen 900 LED Mounting Location = DRAWING:**ENG Whelen 900 LED Warning Light Mounting Location = Front Side Corner of Body, 1 each side Color = Red 576 Lens Color = Red Bezel = Black

604 87040000 1 TRAFFIC ADVISOR, WHELEN LED, TAL65 36"
605 1
**CLAR NOTES, TRAFFIC ADVISOR MOUNTING LOCATION:

Location = Rear of Body, Centered Above A1 Compartment.

CONTROL HEAD = OVERHEAD CONSOLE POSITION #2

606 88393000 1 SCENE LIGHTS, FIRETECH 30K LUMENS, 12V LED, 72" 3-PIECE BROW, W/INTEGRATED ICCS FT-B-72-ML-3PKIT-* (1)

Resolution No. 2025-101
Exhibit "A"

Page 33 of 38 ends

94 Item11.
30 Line Item # Qty Item Description/Comments
607 1 **ENG ICC Cab Marker Lights Integrated in Brow Light = Yes 608 88393052 8 SCENE LIGHT, FIRETECH GUARDIAN ELITE 20K, 12V LED, SURFACE MOUNT, FT-GESM (8) 609 1
**ENG Scene Light Details = Mounting Location =
-(2) Side of Cab, 1 each side
-(2) Side of Body, left side
-(2) Side of Body right side
Switched = Overhead Console Position 1 Left Scene, Right Scene -(2) Mounted Rear of Body
Switched = Overhead Console Position 1, Lower Console Position 5 Rear Scene Reverse Activated
Bezel = BLACK

610 88399940 4 ADDITIONAL SWITCH, 3-WAY FOR 12V LIGHTS (EA) (4) 611 1
**ENG Location & Function for Additional 3-Way Switches 12V = Location & Function for Additional 3-Way Switches 12V = Officer side switches

612 86588888 1 SPECIAL ITEM, 4 Four Additional 3-way Switches = Officers Side Switches Reference HS- 7380

613 1
**CLAR NOTES, SCENE LIGHT, FIRETECH GUARDIAN ELITE 20K, 12V LED, SURFACE MOUNT, FT-GESM (8)

Mounting Location =
-(2) Side of Cab, 1 each side
-(2) Side of Body, left side
-(2) Side of Body right side
Switched = Overhead Console Position 1 Left Scene, Right Scene -(2) Mounted Rear of Body
Switched = Overhead Console Position 1, Lower Console Position 5 Rear Scene Reverse Activated
Bezel = Chrome

614 10310410 1 PAINT & FINISH

PAINT & FINISH
615 89910010 1 CORROSION REDUCTION PROGRAM (PROPOSALS)
616 90010020 1 PAINT SCHEME
617 90030004 1 PAINT, SINGLE TONE
618 1 **ENG Single Tone Paint Color = Red.
619 90030154 1 PAINT FRAME RAILS & BODY REAR DROP - BLACK 620 90030190 1 TEXTURED FRAME RAIL COATING, PLUMBING AREA 621 90030015 1 A/C CONDENSER PAINTED ROOF COLOR
622 1 **ENG Note Paint AC Condenser Color = Roof Color 623 1 **CLAR NOTES, REFERENCE HS-7980-81
Resolution No. 2025-101
Exhibit "A"

Page 34 of 38 ends

95 Item11.
31 Line Item # Qty Item Description/Comments
624 90510100 1 LETTERING, NOT PROVIDED
625 90530005 8 ADDITIONAL 3" 22KT LETTERS (EACH) (8)
626 90530010 18 ADDITIONAL 4" 22KT LETTERS (EACH) (18)
627 90530030 34 ADDITIONAL 8" 22KT LETTERS (EACH) (34)
628 90530220 12 ADDITIONAL 6" SCOTCHLITE LETTERS (EACH) (12) 629 90530240 6 ADDITIONAL 10" SCOTCHLITE LETTERS (EACH) (6) 630 90530305 1 BASIC 22KT GOLD FIRE DEPT EMBLEMS (Pair) 631 90588888 1 SPECIAL ITEM, FLAG GRAPHICS SIDE OF BODY, (PAIR) 632 1
**CLAR NOTES, FLAG GRAPHICS SIDE OF BODY, (PAIR)

SPECIALITEM, FLAG GRAPHICS SIDE OF BODY, (PAIR). REFERENCE HS-7980 & 7981.

633 90600210 1 REFLECTIVE MATERIAL, INTERIOR CAB DOORS, CHEVRONS, SCOTCHLITE 634 1 **ENG Reflective Striping Color = MATCH REAR CHEVRON AND HS-7380. 635 1 **ENG Reflective Striping Verbiage = "SUTPHEN"
636 1
**CLAR NOTES, REV-A** **ENG Reflective Striping Color = MATCH REAR CHEVRON Red / Black
Send live proof.

637 90610200 1 6" SCOTCHLITE STRIPE AROUND TRUCK
638 90630100 2 1" SCOTCHLITE STRIPE ABOVE OR BELOW - EACH (2) 639 90680110 1 CHEVRON STRIPING, REAR BODY OUTBOARD, SCOTCHLITE 640 1 **ENG Special Chevron Color, Rear Body = Red / Black Send live proof. 641 90680210 1 CHEVRON STRIPING, REAR COMPT DOOR, SCOTCHLITE 642 1 **ENG Special Chevron Color, Rear Compartment Door = Red / Black Send live proof. 643 90680310 1 CHEVRON STRIPING, ABOVE REAR COMPT DOOR, SCOTCHLITE 644 1 **ENG Special Chevron Color, Above Rear Door = Red / Black Send live proof. 645 90684110 1 CHEVRON STRIPING, LADDER ENCLOSURE DOOR, SCOTCHLITE 646 1 **ENG Special Chevron Color, Ladder Enclosure Door = Red / Black Send live proof. 647 1 **ENG List Special Lettering/Striping Details = Reference HS-7980 & HS-7981. 648 90789100 1 GRAPHICS WARRANTY, AGI, 5 YEARS, MATERIAL ONLY Resolution No. 2025-101
Exhibit "A"

Page 35 of 38 ends

96 Item11.
32 Line Item # Qty Item Description/Comments
649 10310420 1 EQUIPMENT

EQUIPMENT
650 91010000 1 MISC EQUIP - (1) PINT TOUCH-UP PAINT, STAINLESS STEEL NUTS & BOLTS 651 91088888 1 SPECIAL ITEM, CONTINGENCY / ADDITIONAL EQUIPMENT / TARIFF FUND. 652 1
**CLAR NOTES, AN ALLOWANCE OF $30,000 ADDITIONAL PER UNIT IS INCLUDED IN THE PRICE OF EACH UNIT. FUNDS ARE TO BE USED IN THE EVENT OF ERRORS OR OMISSIONS IN THE SPECIFICATION PROCESS, FOR ADDITIONAL EQUIPMENT. AND FOR TARIFF RELATED PRICE HIKES. ANY UNUSED FUNDS AFTER MID-INSPECTION, WILL BE ROLLED INTO DEALER SUPPLIED ADDITIONAL EQUIPMENT. IF ANY FUNDS REMAIN

AFTER FINAL INSPECTION, THEY WILL BE CREDITED BACK TO CUSTOMER ON THE FINAL INVOICE.

653 1
**CLAR NOTES, POSSIBLE ADDITIONAL EQUIPMENT ITEMS TO BE REVIEWED AT CONCLUSION OF MID- INSPECTION:

Item may include:

WHEEL CHOCK HWD7-WH Extruded Aluminum Yellow (2)
KOCHECK K48-3 HYDRANT/SPANNER SET EACH (3)
SPECTRA MOBILE 15K 12 VOLT PORTABLE SCENE LIGHT SPA710-P15, EACH (2) HUSQVARNA POWER CUTTER K 770 Rescue Rescue | 12" | Art nr: 967 80 91 01. 638
With Rescue Diamond Blade
POWER BLOWER - VS1.2-18-0.9 ELECTRIC TAPP PPV, TEM 910-1825 2PC. M18 REDLITHIUM, MILWAUKEE BATTERY WITH CHARGER

7. MILWAUKEE SAWZALL / DRILL / AND IMPACT 3 PC SET
ZICO WALKAWAY SCBA BRACKETS (4) SC-
AND CUSTOMER NEEDS VERSUS FUNDS REMAINING.

654 1 **CLAR NOTES, IN LADDER CHUTE.
655 1 **CLAR NOTES, IN LADDER CHUTE.
656 10310600 1 COMPLETION & WARRANTY

COMPLETION & WARRANTY
657 99010100 1 MANUALS, ELECTRONIC VERSION (2-USB)
658 99031195 1 DEALER DELIVERY
659 99520110 1 WARRANTY, ONE YEAR
660 99521100 1 WARRANTY, FRAME, LIFETIME
661 99521200 1 WARRANTY, CAB STRUCTURAL, 10 YR.
662 99521300 1 WARRANTY, BODY STRUCTURAL, 10 YR.
663 99521400 1 WARRANTY, PAINT, 10 YR.
664 99521900 1 WARRANTIES, MAJOR VENDOR COMPONENTS
665 1 COOPERATIVE PURCHASING AGENCY FEES (Sourcewell)
Resolution No. 2025-101
Exhibit "A"

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97 Item11.

Resolution No. 2025-101
Exhibit "A"

Page 37 of 38 ends

98 Item11.

Resolution No. 2025-101
Exhibit "A"

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99 Item11.

ORDINANCE NO. 2025-04

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, APPROVING A PLANNED

DEVELOPMENT PERMIT (MASTER AND PRECISE PLAN),
FOR CONSTRUCTION OF 35 DWELLING UNITS

CASE NO: PL25-0149/PL25-0150/PL25-0151
APPLICANT: Stephen Dalton Architects (C/O Sebastian Beingola) The City Council of the City of Escondido, California does ordain as follows:

SECTION 1. The City Council makes the following findings:
a) Stephen Dalton Architects, represented by Sebastian Beingola, (“Applicant”), filed land use development applications, Planning Case No(s). PL25 -0149/PL25-0150/PL25-0151 (“Application”) constituting a request for a Planned Development Permit (Master and Precise Plan) and Design Review Permit to allow for construction of a thirty-five-unit (35) multi-family building with ground -floor residential uses; and density bonus request to exceed the allowable maximum density (“Project”) on a 0.23 net acre parcel addressed as 339 S. Escondido Boulevard (A ssessor’s Parcel No.: 233-141-15-00), in the Specific Planning Area 9 (SPA-9: Downtown Specific Plan Area) General Plan Land Use Designation, and within the Specific Plan (S-P) zoning district; and b) The subject Property is all real property described in Exhibit “A,” which is attached hereto, and made a part thereof by this reference; and
c) The Application was submitted to, and processed by, the Planning Division of the Development Services Department. The Application consist s of a Planned Development Permit (Master and Precise Plan) to allow for ground-floor residential uses as required by the Downtown Specific Plan and for construction of the Project; and 100
Item12.

STAFF REPORT

July 23, 2025
File Number 0600-10; A-3561

SUBJECT

AWARD A CONSTUCTION CONTRACT FOR THE SPLASH PAD AT GROVE PARK PROJECT AND AUTHORIZE

STAFF TO PROCESS CHANGE ORDERS UP TO TWENTY PERCENT OF THE CONTRACT AWARD AMOUNT

DEPARTMENT
Public Works

RECOMMENDATION
Request the City Council adopt Resolution No. 2025-95 awarding the installation contract for the Splash Pad at Grove Park Project (“Project”) to Western State Builders, Inc. and authorizing the Mayor, on behalf of the City, to execute a Public Improvement Agreement in the amount of $2,356,264 to complete base bid items Nos. 1 thru 30 and additive alternate items Nos. 31, 32 & 33 and authorize the City Manager to approve change orders consistent with Municipal Code Section 10-97(c).

Staff Recommendation: Approval (Joseph Goulart , D irector of Public Works and Robert Rhoades, Assistant Director of Community Services)
Presenter: Ed Vasquez, Project Manager
ESSENTIAL SERVICE – Yes, Public Works/Infrastructure; Maintenance of Parks facilities/Open Spaces COUNCIL PRIORITY – Increase Retention and Attraction of People and Businesses to Escondido; Improve Public Safety

FISCAL ANALYSIS
Sufficient funding is available in the General Capital Projects Fund to complete the Project.

PREVIOUS ACTION
On November 2, 2022, the City entered into a Consulting Agreement with LPA Inc., to update the City of Escondido Grape Day Park Master Plan as well as the development of the New Aquatic Facility.

On October 18, 2023, City council voted not to proceed with developing plans for the aquatic facility.

On November 7, 2023, a third amendment was processed to the consulting agreement pausing all design services by LPA inc.

On February 28, 2024, a fourth amendment was signed with LPA Inc. for the design of the City’s first Splash Pad.
101
Item13.

BACKGROUND
On November 2, 2022, the City entered into a Consulting Agreement with LPA Inc., to update the City of Escondido Grape Day Park Master Plan as well as the development of the New Aquatic Facility. During the initial review and design process LPA Inc. provided City staff with an updated cost estimate for cost of construction of the new aquatics facility at which time it was determined that the cost would far exceed available funding. Subsequently design services were paused during which time staff worked towards a plan to develop the City first splash pad.

On April 30, 2025, a Notice Inviting Bids for installation of the Splash Pad at Grove Park was duly published.

On June 5, 2025, seven sealed bids were opened in response to the advertised request for bids for th is Project. The confirmed totals for the total base and alternate bid items are listed below:

Western State Builders, Inc. $2,356,264.00
Wier Construction Corp $2,512,014.51
Palm Engineering Construction Company, Inc. $2,603,972.90 Western Rim construction, Inc. $2,811,926.00
Blue Pacific Engineering and Construction $2,895,310.00 LB Civil Construction, Inc. $3,169,345.00
Montano Pipe Line, Inc. $3,241,760.00
Staff evaluated the proposed bids and has determined that the bid submitted by Western State Builders, Inc. to be the lowest most responsive and responsible bid. Staff received a bid protest letter from Wier Construction Corp. dated June 9 2025. In the letter Wier Construction Corp questioned the validity of Western State Builders Inc. being able to perform plumbing and electrical work. After researching the subject matter staff determined all plumbing and electrical work associated with the project is going to be performed under Western State Builders Class A and B licenses. A response letter was prepared and sent on June 13, 2025, clarifying the use of a Class A and B licenses to perform the work per the contract documents. No further questions or challenges to the bid have been received from Wier Construction Corp.

Staff recommends awarding the attached Public Improvement Agreement in the amount of $2,356,264 to Western State Builders, Inc. for construction of the Project as shown in Exhibit “A” of Resolution No. 2025-95.

RESOLUTIONS
a) Resolution No. 2025-95
b) Resolution No. 2025-95—Exhibit “A”— Public Improvement Agreement

102
Item13.

RESOLUTION NO. 2025-95

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR

TO EXECUTE, ON BEHALF OF THE CITY, A PUBLIC

IMPROVEMENT AGREEMENT WITH WESTERN STATE
BUILDERS INC . FOR CONSTRUCTION AND

INSTALLATION OF THE SPLASH PAD AT GROVE PARK

PROJECT

WHEREAS, the City Council has allocated funding in the adopted Capital Improvement Program budget for the Splash Pad At Grove Park Project (“Project”); and WHEREAS, a Notice Inviting Bids for said the Project was duly published on April 30, 2025; and WHEREAS, pursuant to said notice, seven sealed bids for the Project were opened and evaluated on June 5, 2025; and
WHEREAS, Western State Builders Inc. was determined to be the lowest most responsive and responsible bidder for the Project; and
WHEREAS, this City Council desires at this time and deems it to be in the best public interest to authorize a Public Improvement Agreement with Western State Builders Inc. in the amount of $2,356,264.

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

1. That the above recitations are true.

2. That the City Council authorizes the Mayor to execute, on behalf of the City, a Public Improvement Agreement with Western State Builders Inc., in a substantially similar form to that which is 103
Item13.
attached and incorporated to this Resolution as Exhibit “A”, and subject to final approval as to form by the City Attorney.

3. That the City Council authorizes the City Manager to execute construction change orders consistent with Municipal Code Section 10-97(c).
104
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Resolution No. 2025-95
Exhibit “A”

Page 1 of 9 ends

Public Improvement Agreement (Contractor) - 1 - CAO: 8/26/2021

CITY OF ESCONDIDO

PUBLIC IMPROVEMENT AGREEMENT
This Public Improvement Agreement (“Agreement”) is made and entered into as of the last date of signature below (“Effective Date”),

Between: CITY OF ESCONDIDO
a California municipal corporation
201 N. Broadway
Escondido, CA 92025
Attn: Ed C Vasquez
760-546-3944
("CITY")

And: Western State Builders, Inc.
a California corporation
2141 Orange Ave.

Escondido CA 92029
Attn: Scott Bando
760-546-2405 X102
("CONTRACTOR").
(The CITY and CONTRACTOR each may be referred to herein as a “Party” and collectively as the “Parties.”)
WHEREAS, the Parties desire to enter into this Agreement for the performance of work relating to the Splash Pad at Grove Park Project (“Project”), occurring on property located at 745 N. Ash St., Escondido, CA 92025 and having assessor’s parcel numbers (APN) 230-530-42 (“Property”), as further described herein.

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

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

105
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Resolution No. 2025-95
Exhibit “A”

Page 2 of 9 ends

Public Improvement Agreement (Contractor) - 2 - CAO: 8/26/2021

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

3. Compensation. In exchange for CONTRACTOR’s completion of the Work, the CITY shall pay, and CONTRACTOR shall accept in full, an amount not to exceed the sum of $2,356,264 (“Contract Price”). CONTRACTOR shall be compensated only for performance of the Work described in this Agreement. No compensation shall be provided for any other work or services without the CITY’s prior written consent.

4. Term and Time of Performance. CONTRACTOR shall commence work within one week from the CITY's notice to proceed. CONTRACTOR shall diligently perform and complete the Work with professional quality and technical accuracy within 120 calendar days of the notice to proceed (“Completion Date”). Extension of terms or time of performance shall be subject to the CITY’s sole discretion.

5. Time Is of the Essence. If the Work is not completed by the Completion Date, it is understood that the CITY will suffer damage. It being impractical and i nfeasible to determine the amount of actual damage, in accordance with Government Code section 53069.85, the Parties agree that CONTRACTOR shall pay to the CITY as fixed and liquidated damages, and not as a penalty, the sum of $250.00 per day for each calendar day of delay until the Work is completed and accepted (“Liquidated Damages Amount”) . Th e Liquidated Damages A mount shall be deducted from any payments due to, or that become due to, CONTRACTOR. CONTRACTOR and CONTRACTOR'S surety shall be liable for the Liquidated Damages Amount.

6. Insurance Requirements.

a. CONTRACTOR shall pro cure and maintain , at its own cost, during the entire term of this Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the Work, and the results of such Work, by CONTRACTOR, its agents, representatives, employees, or subcontractors. Insurance coverage shall be at least as broad as the following:

(1) Commercial General Liability. Insurance Services Office (“ISO”) Form CG 0001 11188 covering Commercial General Liability on an “occurrence” basis, including products and completed operations, property damage, bodily injury (including emotional distress), sickness, disease, or death of any person other than the CONTRACTOR's employees , and personal and advertising injury, and damages because of injury or destruction of tangible property, including loss of use resulting there from, with limits no less than $3,000,000 combined single limit coverage per occurrence for bodily injury and property damage; or, if a general aggregate limit is applicable, either: (i) the general aggregate limit shall specifically apply to the project identified in the bid specifications or to the location of such project which is the subject of these bid specifications with coverage to be no less than $3,000,000, or (ii) the general aggregate shall be at least $3,000,000 combined single limit coverage per occurrence for bodily injury and property damage.

(2) Automobile Liability. ISO Form CA 00 01 covering any auto (Code 1), or if CONTRACTOR has no owned autos, hired (Code 8) and non -owned autos (Code 9), including damages because of bodily injury, death of a person, or property damage arising out of the ownership, maintenance, or use of a motor vehicle, all mobile equipment, and vehicles 106
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Resolution No. 2025-95
Exhibit “A”

Page 3 of 9 ends

Public Improvement Agreement (Contractor) - 3 - CAO: 8/26/2021 moving under CONTRACTOR’s control and engaged in the Work, with limits no less than $3,000,000 combined single limit per accident for bodily injury and property damage.

(3) Workers’ Compensation. Workers' Compensation as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limits of no les s than $1,000,000 per accident for bodily injury or disease.

(4) Builder’s Risk/“All Risk” Insurance. The CONTRACTOR, during the progress of the Work and until final acceptance of the Work by CITY, shall maintain Builder's Risk/"All Risk," course-of-construction insurance satisfactory to CITY issued on a completed value basis of all WORK pursuant to this Agreement. Coverage is to provide extended coverage and insurance against vandalism, theft, malicious mischief, perils of fire, sprinkler leakage, civil authority, sonic boom, earthquake, collapse, flood, wind, lightning, smoke, riot, debris removal (including demolition), and reasonable compensation for the Engineer's services and expenses required as a result of such insured loss upon the Work, including completed Work and Work in progress to the full insurable value thereof. Such insurance shall include the CITY and the City Engineer as an additional named insured and any other person with an insurable interest designated.

(5) If CONTRACTOR ma intains broader coverage and/or higher limits than the minimums otherwise required by this Agreement, the CITY requires and shall be entitled to the broader coverage and/or the higher limits maintained by CONTRACTOR.

b. Each insurance policy required by this Agreement must be acceptable to the City Attorney and shall meet the following requirements:

(1) Compliance with General Condition Requirements. Insurance coverage shall comply with and meet all requirements set forth in Article 5.2 of General Conditions

(2) Acceptability of Insurers. Insurance coverage must be provided by an insurer authorized to conduct business in the state of California with a current A.M. Best’s rating of no less than A-:VII, or as approved by the CITY.

(3) Additional Insured Status . Both the Commercial General Liability and the Automobile Liability policies must name the CITY (including its officials, officers, agents, employees, and volunteers) specifically as an additional insured under the policy on a separate endorsement page. Th e Commercial General Liability additional insured endorsement shall be at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38, and CG 20 37 if a later edition is used. The Automobile Liability additional insured endorsement shall be at least as broad as ISO Form CA 20 01.

(4) Primary Coverage. CONTRACTOR’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 with respect to the CITY, its officia ls, officers, agents, employees, and volunteers. Any insurance or self -insurance maintained by the CITY, its officials, officers, agents, employees, or volunteers shall be in excess of CONTRACTOR’s insurance and shall not contribute with it.

(5) Notice of Cancellation. Each insurance policy shall provide that coverage shall not be canceled, except with prior written notice to the CITY.

(6) Subcontractors. If applicable, CONTRACTOR shall require and verify that all subcontractors maintain insurance meeting a ll the requirements stated within this 107
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Resolution No. 2025-95
Exhibit “A”

Page 4 of 9 ends

Public Improvement Agreement (Contractor) - 4 - CAO: 8/26/2021 Agreement, and CONTRACTOR shall ensure that the CITY (including its officials, officers, agents, employees, and volunteers) is an additional insured on any insurance required from a subcontractor.

(7) Waiver of Subrogation. CONTRACTOR hereby grants to the CITY a waiver of any right to subrogation that any insurer of CONTRACTOR may acquire against the CITY by virtue of the payment of any loss under such insurance. CONTRACTOR agrees to obtain any endorsement that may be n ecessary to affect this waiver of subrogation, but this subsection shall apply regardless of whether or not the CITY has received a waiver of subrogation endorsement from the insurer. Any Workers’ Compensation policy required by this Agreement shall be endorsed with a waiver of subrogation in favor of the CITY for all work performed by the CONTRACTOR, its agents, representatives, employees and subcontractors.

(8) Self-Insurance. CONTRACTOR may, with the CITY’s prior written consent, fulfill some or all of th e insurance requirements contained in this Agreement under a plan of self - insurance. CONTRACTOR shall only be permitted to utilize such self -insurance if, in the opinion of the CITY, CONTRACTOR’s (i) net worth and (ii) reserves for payment of claims of liability against CONTRACTOR are sufficient to adequately compensate for the lack of other insurance coverage required by this Agreement. CONTRACTOR’s utilization of self- insurance shall not in any way limit the liabilities assumed by CONTRACTOR pursuant to this Agreement.

(9) Self-Insured Retentions. Self-insured retentions must be declared to and approved by the CITY.

c. Verification of Coverage. At the time CONTRACTOR executes this Agreement, CONTRACTOR shall provide the CITY with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting the insurance coverage required by this Agreement), which shall meet all requirements under this Agreement. The CITY reserves the right to req uire complete, certified copies of all required insurance policies, including endorsements required by this Agreement, at any time.

d. Special Risks or Circumstances. The CITY reserves the right, at any point during the term of this Agreement, to modify the insurance requirements in this Agreement, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

e. No Limitation of Obligations. The insurance requirements within this Agreement, including the types and limits of insurance coverage CONTRACTOR must maintain, and any approval of such insurance by the CITY, are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONTRACTOR pursuant to this Agreement, including but not limited to any provisions within this Agreement concerning indemnification.

f. Compliance. Failure to comply with any of the insurance requirements in this Agreement , including but not limited to a lapse in a ny required insurance coverage during the term of this Agreement, shall be a material breach of this Agreement. Compliance by CONTRACTOR with the requirement to carry insurance and furnish certificates, policies, Additional Insured Endorsement and Declarations Page evidencing the same shall not relieve the CONTRACTOR from liability assumed under any provision of this Agreement, including, without limitation, the obligation to defend and indemnify the CTY and the City Engineer. In the event that CONTRACTOR fails to comply with any insurance requirement set forth in this Agreement, in addition to any other remedies the CITY may have, the CITY may, at its sole option, (i) immediately terminate this Agreement; or (ii) order CONTRACTOR to stop Work under this 108
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Exhibit “A”

Page 5 of 9 ends

Public Improvement Agreement (Contractor) - 5 - CAO: 8/26/2021 Agreement and/or withhold any payment that becomes due to CONTRACTOR until CONTRACTOR demonstrates compliance with the insurance requirements in this Agreement.

7. Indemnification, Duty to Defend, and Hold Harmless.

a. CONTRACTOR (including CONTRACTOR’s agents, employees, and subcontractors, if any) shall indemnify, defend, and hold harmless the CITY, its officials, officers, agents, employees, and volunteers from and against any and all claims, demands, actions, causes of action, proceedings (including but not limited to legal and administrative proceedings of any kind), suits, fines, penalties, judgments, orders, levies, costs, expenses, liabilities, losses, damages, or injuries, in law or equity, including without limitation the payment of all consequential damages and attorney’s fees and other related litigation costs and expenses (collectively, “Claims”), of every nature caused by, arising out of, or in connection with CONTRACTOR’s (including CONTRACTOR’s agents, empl oyees, and subcontractors, if any) Work pursuant to this Agreement or its failure to comply with any of its obligations contained herein, except where caused by the active negligence, sole negligence, or willful misconduct of the CITY.

b. CONTRACTOR (including CONTRACTOR’s agents, employees, and subcontractors, if any) shall indemnify, defend, and hold harmless the CITY, its officials, officers, agents, employees, and volunteers from and against any and all Claims caused by, arising under, or resulting from any violation, or claim of violation, of the San Diego Municipal Storm Water Permit (Order No.

R9-2013-0001, as amended) of the California Regional Water Quality Control Board, Region 9, San Diego, that the CITY might suffer, incur, or become subject to by reason of, or occurring as a result of, or allegedly caused by, any Work performed pursuant to this Agreement.

c. All terms and provisions within this Section 7 shall survive the termination of this Agreement.

8. Bonds.

a. CONTRACTOR shall furnish and deliver to the CITY, simultaneously with the execution of this Agreement, the following surety bonds:

(1) Faithful Performance Bond. CONTRACTOR shall furnish to the CITY a surety bond in an amount equal to the Contract Price as security for faithful performance of this Agreement.

(2) Labor and Materials Bond. CONTRACTOR shall furnish to the CITY a surety bond in an amount equal to the Contract Price as security for payment to persons performing labor and furnishing materials in connection with the Project.

b. All bonds furnished to the CITY pursuant to this Agreement shall be in the form set forth herein and approved by the City Attorney.

c. All bonds shall be executed by sureties that are named in the current list of "Companies Holding Certificates of Authority as Acceptable Sureties on Federal bonds and as Acceptable Reinsuring Companies" as published in Circular 570 (amended) by the Audit Staff, Bureau of Government Financial Operations, U.S. Treasury Department. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act.

d. If the surety on any bond furnished by the CONTRACTOR is declared bankrupt or becomes insolvent or its right to do business is terminated in any state where any part of the Work is located, the CONTRACTOR shall, within seven days thereafter, substitute another bond and surety, which must be acceptable to the CITY. No portion of the Work shall be performed without bonds, in a form and issued by a surety acceptable to the City. If one or more of such bonds 109
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Resolution No. 2025-95
Exhibit “A”

Page 6 of 9 ends

Public Improvement Agreement (Contractor) - 6 - CAO: 8/26/2021 shall, at any time, not be in full force and effect, CONTRACTOR shall immediately cease performance of the Work until CONTRACTOR is in full compliance with the bonding requirements of this Agreement and California law. All delays and costs incurred or resulting from such occurrence shall be to the exclusive account of CONTRACTOR. Failure of the CONTRACTOR to promptly cure any failure to have the necessary bonds in full force and effect shall be grounds for immediate termination of this Agreement.

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

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

10. Contractor Default. In the event CONTRACTOR, for a period of 10 calendar days after receipt of written demand from the CITY to do so (“Cure Period”), fails to furnish tools, equipment, or labor in the necessary quantity or quality required by this Agreement, or fails to prosecute the Work and all parts thereof in a diligent and workmanlike manner, or after commencing to do so within the Cure Period, fails to continue to do so, then the CITY in its sole discretion may exclude the CONTRACTOR from the Property, or any portion thereof, and take exclusive possession of the Property or any portion thereof, together with all material and equipment thereon, and may complete the Work or any portion of the Work, either by (i) furnishing the necessary tools, equipment, labor, or materials; or (ii) letting the unfinished portion of the work, or any portion t hereof, to another contractor; or (iii) demanding the surety hire another contractor ; or (iv) any combination of such methods. The CITY’s procuring of the completion of the Work, or the portion of the Work taken over by the CITY, shall be a charge against the CONTRACTOR and may be deducted from any money due or to become due to CONTRACTOR from the CITY, or the CONTRACTOR shall pay the CITY the amount of such charge, or the portion thereof unsatisfied. The sureties provided for under this Agreement shall become liable for payment if CONTRACTOR fails to pay in full any such cost incurred by the CITY. The permissible charges for any such procurement of the completion of the Work include actual costs and fees incurred to third party individuals and entities (including but not limited to consultants, attorneys, inspectors, and designers) and actual costs incurred by the CITY for the increased dedication of time of the CITY’s employees to the Project.

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

12. Merger Clause. This Agreement, together with its attachments or other documents described or incorporated herein, if any, constitutes the entire agreement and understanding of the CITY and CONTRACTOR concerning the subject of this Agreement and supersedes and replaces all prior negotiations, understandings, or proposed agreements, written or oral, except as otherwise provided herein. In the event of any conflict between the provisions of this Agreement and any of its attachments or related documents, if any, the provisions of this Agreement shall prevail. 110
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13. Attorney’s Fees and Costs . In any action to enforce the terms and conditions of this Agreement, the prevailing Party shall be entitled to reasonable attorney’s fees and costs.

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

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

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

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

18. Governing Law. This Agreement and all rights and obligations arising out of it shall be construed in accordance with the laws of the State of California. Venue for any action arising from this Agreement shall be conducted only in the state or federal courts of San Diego County, California.

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

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

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

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

23. Prevailing Wages and Department of Industrial Relations Compliance. Pursuant to California Labor Code section 1770 et seq., CONTRACTOR agrees that a prevailing rate and scale of wages, in accordance with applicable laws, shall be paid in performing this Agreement. CONTRACTOR shall keep itself informed of and comply with all applicable federal, state, and local laws, statutes, codes, ordinances, regulations, rules, and other legal requirements pertaining to the payment of prevailing wages, including but not limited to the keeping of certified payroll records, overtime pay, employment of apprentices, and workers' compensation coverage, as further set forth in the General Conditions.

CONTRACTOR shall file the required workers' compensation certificate before com mencing work 111
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Public Improvement Agreement (Contractor) - 8 - CAO: 8/26/2021 under this Agreement . This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. CONTRACTOR shall post all job site notices required by regulation. CONTRACTOR, as well as any subcontractors, shall be registered pursuant to California Labor Code section 1725.5 to be qualified to bid on, be listed in a bid proposal (subject to the requirements of Public Contract Code section 4104), or engage in the pe rformance of any public works contract subject to the requirements of Division 2, Part 7, Chapter 1 of the California Labor Code. Neither the CITY, nor any elected or appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of CONTRACTOR to comply with this section.

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

25. Effective Date. Unless a different date is provided in this Agreement, the effective date of this Agreement shall be the latest date of execution set forth by the names of the signatories below. (SIGNATURE PAGE FOLLOWS)
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Public Improvement Agreement (Contractor) - 9 - CAO: 8/26/2021 IN WITNESS WHEREOF, this Agreement is executed by the Par ties or their duly authorized representatives as of the Effective Date:

CITY OF ESCONDIDO

Date: __________________ ___________________________________ Dane White, Mayor

WESTERN STATE BUILDERS INC.

Date: __________________ ___________________________________ Jared Moen, President / Secretary

Date: __________________ ___________________________________ Julian Moen, Vice President / Treasurer

1069677____________________________
Contractor's License No.

___________________________________
Tax ID/Social Security No.

APPROVED AS TO FORM:

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

BY: __________________________

THE CITY OF ESCONDIDO DOES NOT DISCRIMINATE AGAINST QUALIFIED PERSONS WITH DISABILITIES.

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STAFF REPORT

July 23, 2025
File Number 0600-10; A-3550

SUBJECT

ENTERING INTO A LEASE BETWEEN THE CITY OF ESCONDIDO AND THE VINE INSTITUTE FOR THE

CREATION AND OPERATION OF THE ESCONDIDO AGX REGIONAL INNOVATION HUB AND PUBLIC

SERVICE AGREEMENT FOR OPERATIONAL STARTUP FUNDING

DEPARTMENT
Economic Development, Real Property

RECOMMENDATION
Request the City Council adopt Resolution No. 2025-43 authorizing the Mayor to execute a lease agreement for the property located at 455 N. Quince Street, Escondido, California, 92025, between the City of Escondido and The VINE Institute, a California non-profit benefit corporation and adopt Resolution No. 2025-47 authorizing the City Manager to execute an Public Service Agreement between the City and The VINE for startup funding for the Escondido AgX Innovation Hub.

Staff Recommendation: Approval (Economic Development Department: Jennifer Schoeneck, Director of Economic Development)
Presenter: Jennifer Schoeneck, Director of Economic Development ESSENTIAL SERVICE – Yes, Land Use/Development
COUNCIL PRIORITY – Increase Retention and Attraction of People and Businesses to Escondido

FISCAL ANALYSIS
The proposed lease of the 3.48-acre property located at 455 N. Quince Street, Escondido, CA 92025 (“Property”) to The VINE Institute, a California non-profit benefit corporation (“VINE”), will be for a period of three (3) years with three (3) lease extension options for a total of fifteen ( 15) years. The proposed lease shall include fixed rent payments of $1 0 per year, totaling $150 for the entire term, which will be paid in advance. VINE will also be responsible for all utility costs , building, and site impro vement costs associated with the Property. Escondido AgX is a City-owned brand representing the City’s work to support agriculture and AgTech companies. The Escondido AgX Innovation Hub is the physical building at 455 N.

Quince and further detailed in the Escondido AgX Feasibility Study (Attachment “1”). VINE, under the proposed lease agreement, will operate and manage the facility, with permission to use the Escondido AgX brand.
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As outlined in the feasibility study presented to City Council on March 26, 2025, the facility’s financial model projected potential lease revenue to the City based on market -based assumptions. However, the lease agreement being considered by Council today is structured as a public benefit lease at a nominal rate of $10 per year. Therefore, the City will not receive the market -rate lease revenue described in the feasibility study for the initial term of the lease, but it may be negotiated in the future when the facility is fully operational . This deviation from the study’s assumpti ons is intentional and reflects the City’s commitment to supporting economic development and innovation through a public -private partnership model.

In addition to the lease terms, the City will invest a total of $500,000 over the first two years of the lease through a Public Service Agreement, to support startup activities, tenant improvements, and operational needs that align with the goals of the Escondido AgX Innovation Hub as outlined in a feasibility study received by City Council on March 26 , 2025. Of this amount, the first $250,000 will be allocated upon lease commencement in the current fiscal year. The remaining $250,000 will be granted after the first year’s annual report is delivered by VINE to City Council and programmed in the follow ing fiscal year budget. These funds will be used in coordination with VINE’s fundraising and program development activities, as outlined in the lease agreement, Public Service Agreement and supporting feasibility study.

The Public Service Agreement (“PSA”) with VINE is being pursued as a sole source contract in accordance with Escondido Municipal Code §10 -123(d), which permits procurement procedures to be waived when only one individual or entity can provide the service. VINE is uniquely qualified to implement the startup activities for the Escondido AgX Innovation Hub due to its affiliation with the University of California Agriculture and Natural Resources ( “UCANR”) system and its integration within the statewide UC innovation network. This affiliation provides unparalleled access to academic research, entrepreneurship resources, and statewide AgTech and food systems expertise critical to the long -term success of the Innovation Hub.

PREVIOUS ACTION
On August 24, 2022, staff presented the concept of a Pilot AgTech Incubator at the City-owned property at 455 N. Quince Street, Escondido, CA 92025. The presentation outlined potential short-term and long- term uses of the site and the City Council requested a comprehensive financial analysis to understand the fiscal implications of the proposed uses. On December 7, 2023, staff presented to the City Council Economic Development Subcommittee on the City’s Escondido AgX initiative, which supports Agriculture and AgTech efforts aligned with the priorities outlined in the City’s Comprehensive Economic Development Strategy (“CEDS”). As part of this presentation, staff recommended entering into a contract with the UCANR department or affiliated nonprofit VINE to conduct a feasibility study for an AgTech Innovation Center on a City-owned vacant property. The Subcommittee approved including the proposal in the American Rescue Plan Act (“ARPA”) reallocation exercise scheduled for the January 31, 2024, City Council meeting.
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On January 31, 2024, City staff proposed reallocatin g ARPA funding to support City Council’s priorities.

Among the approved projects, $115,000 was allocated to fund a contract with UCANR and VINE to conduct a feasibility study for an AgTech Innovation Center in support of the City’s AgX initiative.

On March 26, 2025, City staff presented the findings of the feasibility study for an AgTech Innovation Center in Escondido. The study outlined the total cost to renovate the vacant, City-owned building at 455 N. Quince Street and transform it into a regional hub for AgTech innovation, entrepreneurship, and workforce development. Following the presentation, the City Council directed staff to move the Project forward quickly and return with actionable next steps.

BACKGROUND
In 2023, the Escondido City Council adopted the City’s CEDS that outlines key strategies to grow the local economy. One of the key industries identified in the strategy was agriculture and agriculture technology to support the future of local agriculture.

To gauge regional interest on the topic of agriculture technology and innovation, the City hosted two annual events, and several quarterly events in partnership with the organization Fresh Brewed Tech, which brought hundreds of people from all parts of the Southern California region together in the City of Escondido to have conversations on how to solve some of the agriculture industry’s largest challenges.

The success of these events showed local demand for a facility to further support entrepreneurship, food systems and innovation in agriculture.

The next step in continuing to support the entrepreneurial ecosystem in agriculture was to establish a center of excellence for the future of agriculture, a place that could serve as a nexus point for Escondido businesses and the Southern California region. The City of Escondido contracted with VINE to complete a feasibility study for a facility to house AgTech innovation to support local agriculture businesses and the future of agriculture and food systems. The study outlined the potential for activities and programs at the City owned property located at 455 N. Quince Street, a City-owned 3.48-acre property with 40,680 square feet of existing warehouse and office space . The proposed facility would serve as a regional hub for agricultural technology and innovation that includes:
 An incubator space for AgTech startups; and
 Serve as a regional food hub for local produce distribution; and  House a consumer-packaged goods (“CPG”) lab and test kitchen; and  Serve as an agritourism coordinating center; and
 Further grow the “Grown in San Diego” brand
During early discussions, City staff considered managing the building and operations of the proposed Escondido AgX Regional Innovation Hub internally. However, after further evaluation and a review of the feasibility study findings, staff concluded that operations would be more effectively handled by a qualified 116
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partner from the private or nonprofit sector. The VINE Institute—an independent nonprofit that works closely with UCANR —was identified as the most capable operator due to its subject matter expertise, established network within the agricultural innovation space, and alignment with the goals of the Escondido AgX initiative.

The expectation is that VINE, as the Lessee, will be responsible for the renovation and build out the current facility to the standards as outlined in the feasibility study and the accompanying Public Service Agreement, and create subleases with tenants to achieve operations as outlined in the feasibility study .

VINE will be tasked with ensuring that the Escondido AgX Regional Innovation Hub is recognized at the state and national level as a regional center of excellence in advancing agriculture and food syste m practices.

RESOLUTIONS
a) Resolution No. 2025-43
b) Resolution No. 2025-43— Exhibit “A”— Lease Agreement c) Resolution No. 2025-47
d) Resolution No. 2025-47—Exhibit “A”— Public Services Agreement

ATTACHMENTS

a) Attachment “1”— Feasibility Study for the Development of the AgX Innovation Center in Escondido, California

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RESOLUTION NO. 2025-43

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR

TO EXECUTE , ON BEHALF OF THE CITY, A LEASE

AGREEMENT BETWEEN THE CITY OF ESCONDIDO AND

THE VINE INSTITUTE FOR THE PROPERTY LOCATED AT
455 N. QUINCE STREET, ESCONDIDO, CALIFORNIA
92025 TO BE KNOWN AS THE ESCONDIDO AGX

REGIONAL INNOVATION HUB

WHEREAS, this Resolution is being adopted for the purpose of authorizing the Mayor to execute, on behalf of the City, a Lease Agreement between the City of Escondido (“City”) and The VINE Institute, (“Vine” or “lessee”), a California non-profit public benefit corporation, at 455 N. Quince Street, Escondido, California 92025; and
WHEREAS, the City owns real property located at 455 N. Quince Street, Escondido, California 92025 (APN 232-091-2700), which is comprised of 3.48 acres and approximately 40,680 square feet of warehouse and office space (“Property”); and
WHEREAS, the City Council has considered the Lease Agreement proposal and terms, the Staff Report, attachments to the Staff Report, and any public comment; and WHEREAS, the proposed Lease Agreement for the Property is attached hereto as Exhibit “A”; and WHEREAS, City staff has negotiated the terms the proposed fifteen (15) year Lease Agreement with Vine for the exclusive use of the Property to operate the Escondido AgX Innovation Hub; and WHEREAS, the Lease Agreement specifies that if Vine fails to demonstrate significant progress toward the development and op eration of the Escondido AgX Innovation Hub within three years of the 118
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Lease Agreement E ffective Date (as such term is defined therein) , the City or Vine may terminate the Lease Agreement; and
WHEREAS, any changes to the use of the Property beyond what is outlined in the Lease Agreement and permitted under current City zoning and land use regulations shall require prior written approval from the Real Property Manager , amendment of the Lease Agreement, and compliance with applicable permitting processes established by the City; and
WHEREAS, the City ha d partnered with the University of California Agriculture and Natural Resources (“UCANR”) and Vine to explore the development of an Escondido AgX Innovation Hub at the Property; and
WHEREAS, Vine conducted a Feasibility Study for the Escondido AgX Innovation Hub which identified the Property as a viable and strategic location to advance agriculture technology innovation, entrepreneurship, and workforce development; and
WHEREAS, the City Council finds that entering into the proposed Lease Agreement is in the public interest, furthers the City's economic development goals, and aligns with the City's Comprehensive Economic Development Strategy.

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

1. That the above recitations are true.

2. The Mayor is hereby authorized to execute, subject to final approval as to form by the City Attorney, the Lease Agreement between the City of Escondido and The V INE Institute for the property 119
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located at 455 N. Quince Street, Escondido, CA 92025, substantially in the form attached hereto as Exhibit “A.”

3. The Council affirms that The Vine Institute must obtain all necessary land use entitlements, permits, and approvals for any improvements or modifications to the premises beyond those permitted by right. No rights, approvals, or entitlements are granted or implied by the adoption of this Resolution alone.

4. The Council further finds that this Lease advances the City’s objectives to support agricultural innovation, business creation, job creation, and long-term economic sustainability in the region.

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Resolution No. 2025-43
Exhibit “A”

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Lease Agreement - 1 - CAO: 04/23/2024

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

RECORDING REQUESTED BY, AND
WHEN RECORDED RETURN TO:

Attn: Real Property Manager
City of Escondido
201 North Broadway
Escondido, CA 92025-2798

This Space for Recorder’s Use Only
APN: 232-091-2700

LEASE AGREEMENT
for
455 N. Quince St., Escondido, CA, 92025-2521
between
The City of Escondido
and
VINE Institute
a California non-profit public benefit corporation

Effective Date: ____________, 20__

Term:15 years
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Exhibit “A”

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Lease Agreement - 2 - CAO: 04/23/2024

LEASE AGREEMENT

This LEASE AGREEMENT (this "Lease") is entered into as of the last signature date set forth below (“Effective Date”), by and between the City of Escondido, a California municipal corporation (the “City”), and VINE Institute, a California non-profit public benefit corporation (“Lessee”) regarding the City’s real property located at 455 N. Quince S.t, Escondido, CA, 92025 -2521, and having assessor’s parcel number (APN) 232-091-2700, as more particularly described in Exhibit A of this Lease, which is attached hereto and incorporated herein by this reference (“Premises”). (The City and Lessee each may be referred to herein as a “Party” and collectively as the “Parties.”)

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. Term. The term of this Lease shall be for a period of 3 years, commencing on the Effective Date (“Term”).At the end of the Term, this Lease may be renewed for three additional option terms, upon written agreement by the City and the Lessee.

Option 1: Three (3) years
Option 2: Four (4) years
Option 3: Five (5) years

2. Termination for Nonperformance. As discussed elsewhere herein, the Parties intend for Lesee to create the Escondido AgX Innovation Hub as outlined in the Feasibility Study for the Development of the AgX Innovation Center in Escondido, California , which is attached hereto as Exhibit B and incorporated herein by this reference (“Feasibility Study”), except as to any conflicting terms provided herein. In addition to this Lease, the City and Lessee shall enter in to a Public Services Agreement regarding Lessee’s establishment of the Escondido AgX Innovation Hub at the Premises (“Public Services Agreement”). The City reserves the right to terminate this Lease without notice should Lessee fail to perform its obligations under the Public Services Agreement. Additionally, the City reserves the right to terminate this Lease without notice should Lessee fails to perform all of its obligations under this Lease.

3. Rent.

3.1 Base Rent. In consideration of the possession and use of the Premises , Lessee shall pay to the City rent in the amount of $10.00 per year paid in advance for the first 3 years of the Term (“Rent”), and annually thereafter due and payable on the last signature date set forth below. Checks should be made payable to the City of Escondido and delivered to Attn: Accounts Receivable at 201 N.

Broadway, Escondido, CA 92025.

3.2 Late Fee. Rent payments received after the fifth day of any month during the Term of this Lease will be considered late and Lessee shall be charged the Rent plus an additional 20% of the Base Rent amount stated in Paragraph 3.1 of this Lease.

4. Intentionally Omitted.

5. Utility Payments. Lessee is responsible for all utilities and services necessary for Lessee’s 122
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occupancy and use of the Premises, incl uding but not limited to the following: gas, water, electricity, trash, telecommunications, and sewage or septic service charges (“Utility Payments”). Lessee will be responsible for transferring all utilities into the name of the Lessee.

6. Taxes, Assessments, and Fees.

6.1 The terms of this Lease may result in the creation of a possessory interest. If such a possessory interest is vested in Lessee, Lessee shall pay, prior to delinquency, all taxes and assessments that may be levied upon or assessed against the Premises and all taxes and assessments of every kind and nature whatsoever arising in any way from the use, occupancy , or possession of the Premises or assessed against the improvements situated thereon. The City shall not be required to pay any taxes or assessments whatsoever that relate to or may be assessed against this Lease or the Premises, including but not limited to any buildings, improvements, structures, machines, appliances, or other improvements of any nature whatsoever, or on any interest therein.

6.2 Lessee may, at its option, contest in good faith, and by an appropriate and timely legal proceeding, any such tax and assessment; provided, however, that Lessee shall indemnify and hold harmless the City from any loss or damage resulting from any such contest, and all expenses of the same (including, without limitation, all attorneys’ fe es, court costs, and other costs) shall be paid solely by Lessee.

6.3 Lessee further agrees not to allow such taxes, assessments, or fees to become a lien against the Premises or any improvement thereon. Nothing in this Lease shall be deemed to prevent or prohibit Lessee from contesting the validity or amount of any such tax, assessment, or fee in any manner authorized by law.

7. Use.

7.1 Permitted Uses. Lessee shall use and occupy the Premises exclusively for the following uses: creation of the Escondio AgX Innovation Hub as described and outlined in the Feasibility Study, except as to any conflicting terms provided herein, for the Development of the AgX Innovation Center in Escondido, California . Lessee’s use and occupancy of the Premises shall comply with all provisions and requirements contained in any permits or approvals issued by the City of Escondido or any other governmental agency relating to the Premises. Lessee shall not use or occupy, nor permit the use or occupancy of, the Premises other than as authorized in this Lease.

7.2 Prohibited Use. Lessee shall not use or allow the Premises to be used for any unlawful purpose, nor shall Lessee cause or maintain or permit any nuisance in, on , or about the Premises. Lessee shall not commit or suffer the commission of any waste in, on, or about the Premises.

Lessee shall not use or permit the use of the Premises for any purpose prohibited by this Lease.

7.3 Use Determination. In any case where Lessee is in doubt as to the propriety of any particular use, Lessee may request written determination of the City that such use is or is not permitted at the Premises.

7.4 Right to Inspect. The Premises shall at all times be open to inspection by all local, state, and federal govern mental authorities. In the event the City determines that Lessee’s use of the Premises creates an unnecessary or unreasonable risk to the Premises or to public health, safety , or welfare, the City may require that Lessee cease using the Premises until such risk no longer exists.

7.5 Pets. No pets or livestock of any kind may be kept on the Premises throughout 123
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the Term without the prior written consent of the City’s Real Property Manager.

8. Acceptance and Maintenance.

8.1 Lessee hereby acknowledges and agrees that Lessee has inspected the Premises and Lessee accepts said Premises "as is" and "where is." Lessee acknowledges that the City makes no representations as to the condition or suitability of the Premises or any improvements on the Premises.

8.2 Pursuant to the noticing requirements of California Civil Code section 1938, Lessee acknowledges that the Premises being leased has not undergone inspection by a Certified Access Specialist (CASp). Pursuant to California Civil Code section 1938(e), the City states as follows:
a. A CASp can inspect the Premises and determine whether the Premises complies with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the Premises, the City may not prohibit Lessee from obtaining a CASp inspection of the Premises, if requested by Lessee. Should Lessee request a CASp inspection, the Parties shall mutually agree on the arrangements for the time and manner of the CASp inspection. the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the Premises. b. Lessee hereby expressly agrees that the CASp inspection fee and any repairs or modifications necessary to correct violations of construction -related accessibility standards that are noted in a CASp’s inspection report are the sole responsibility of Lessee.

8.3 Lessee agrees to maintain the Premises in good condition and in compliance with all applicable property maintenance and related laws. Lessee releases the City from any obligation to maintain any portion of the Premises. Said release is part of the consid eration for the rental of the Premises, and Lessee therefore waives all rights it may otherwise have under California Civil Code sections 1941 and 1942.

8.4 In the event Lessee fails to properly maintain the Premises as required by the City, the City shall notify Lessee in writing of the same. If Lessee fails to correct the identified insufficient maintenance within 30 days of the City’s notice, the City may either:
a. Treat Lessee’s failure as an Event of Default pursuant to Paragraph 11.2 of this Lease; or
b. Perform such maintenance as the City deems necessary, at Lessee’s sole cost, to keep the Premises in good condition and in compliance with all applicable property maintenance and related laws (“Necessary Maintenance”) . If the City performs Necessary Maintenance, costs resulting therefrom may include, but are not limited to, labor, material, and equipment . Upon completion of Necessary Maintenance by the City , the City shall provide Lessee with an invoice for all Necessary Maintenance costs. Lessee shall pay the City the full invoiced amount within 10 days of receipt of the invoice. Lessee’s failure to pay the full invoiced amount within 10 days of receipt of the invoice may be treated as an Event of Default pursuant to Paragraph 11.2 of this Lease.

9. Alterations. Lessee shall have three years from the effective date to make significant progress toward completing any necessary alterations and renovations to the Premises for the operation of the Escondido AgX Innovation Hub as described and outlined in the Feasibility Study for the Development of the AgX Innovation Center in Escondido, California, and only after obtaining all applicable permits and approvals . Lessee shall perform all necessary work to bring the building in compliance with applicable municipal code standards within three years from the effective date. The City agrees to waive 124
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all permit fees, and expedite all permits associated with the Escondido AgX Innovation Hub for the Term of the Lease agreement. Any improvements to the Premises during the Term shall become a fixture to the realty and shall remain on and be surrendered with the Premises upon termination of this Lease.

10. Occupancy, Assignment, and Subletting.

10.1 Occupancy. Lessee shall take occupan cy of the Premises within 30 days of the Effective Date of this Lease.

10.2 Assignment. Lessee may not assign any interest in this Lease to any third party, at any time, including by means of a transfer of a controlling interest in Lessee.

10.3 Subleasing. Lessee may sublease portions of the facility at their discretion in furtherance of the Permitted Uses. Subleases will not supersede any portion of this lease agreement.

11. Lease Termination.

11.1 The City may terminate this Lease within the first three years of the lease if the necessary alterations and renovations to bring the Premises into compliance with applicable municipal code provisions, and for the operation of the Escondido AgX Innovation Hub are not completed, or any nonperformance or deviation from the intent of the feasibility study to create a regional innovation hub for agriculture technology.

11.2 Event of Default . The following shall constitute an event of default (“Event of Default”) whereby the City may immediately terminate this lease upon written notice:
a. Lessee’s violation of any provision of this Lease , excluding a default in the timely payment of Rent or other payment required to be made by Lessee under this Lease as described in Paragraph 11.2(b) of this Lease; or
b. Lessee’s d efault in the timely payment of Rent or other payment required to be made by Lessee under this Lease , where such default is not cured within five business days after written notice of such default is given to Lessee.
c. Lessee’s default or failure to fully perform under the related Public Service Agreement approved and executed concurrently with this Lease.

11.3 Vacation of Premises. Upon termination of this Lease for any reason, Lessee shall peaceably vacate and deliver the Premises to the City in the same condition as Lessee found it upon Lessee’s acceptance of the Premises hereunder, excepting ordinary wear and tear and other conditions accepted in the City’s sole and absolute discretion.

11.4 Violation or failure to perform on state or federal grant contracts . If the Lessee is found to be in violation or failure to perform on awarded state or federal grant agreements, the City at its sole discretion may terminate the lease.

11.4 Upon termination of this Lease, Lessee shall immediately:
a. Arrange and pay for the disconnection of all utilities and services as referenced in Paragraph 5 of this Lease;
b. Provide a written sta tement to the City’s Real Property Manager identifying Lessee’s new address for purpose of refunding monies, if any, due Lessee under this Lease; and c. Deliver any keys for the Premises to the City’s Real Property Manager , the means of such delivery con sisting of personal delivery or, if in -person delivery is not possible, by 125
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certified mail.

12. Notice. Unless otherwise provided herein, any statements, communications, or notices to be provided pursuant to this Lease shall be sent by personal delivery, certified or registered mail, or email to the addresses and to the attention of the persons set forth herein. Either Party shall provide the other Party with 10 days’ written notice of any change of person to be notified or change of address.

If to Lessee:
1100 Main Street, Suite 300
Woodland, CA 95695-3522
Attn: Lon Hatamiya
President VINE Institute
530-304-3398
If to the City:

City of Escondido
201 N. Broadway
Escondido, CA 92025
Attn:Jennifer Schoeneck,
Director of
Economic Development
760 -839-458

13. Indemnification, Hold Harmless, Duty to Defend.

13.1 Lessee (including Lessee’s agents, employees, contractors, and subcontractors, if any) shall indemnify, hold harmless, and defend the City, its boards, commissions, departments, officials, office rs, 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 any kind), suits, fines, penalties, judgments, orders, liens, levies, costs, expenses, liabilities, losses, damages, or injuries, in law or equity, including without limitation the payment of all consequential damages and attorney’s fees and other related litigation costs and expenses (collectively, “Claims”), and any attorney’s, consultant, or expert fees and City staff costs for investigating and responding to any Claims, and provide and pay all costs for a defense of any and all Claims against any of the Indemnified Parties, in connection with this Lease or any component thereof; the validity, applicability, or implementation of this Lease; the presence of Hazardous Materials as defined in this Lease; or Lessee’s use of the Premises.

13.2 Lessee shall further indemnify, protect , defend, and hold harmless the Indemnified Parties from and against any and all Claims caused by, arising under, or resulting from any violation, or claim of violation, of the San Diego Municipal Storm Water Permit (Order No. R9 -2013- 0001, as amended) of the California Regional Water Quality Control Board Region 9, San Diego, that the City might suffer, incur, or become subject to by reason of, occurring as a result of, or allegedly caused by, this Lease or Lessee’s use of the Premises.

13.3 All provisions within this Section 11 shall survive termination of this Lease.

14. Insurance.

14.1 Lessee shall procure and maintain, at its own cost, during the entire term of this Lease, insurance against claims for injuries to persons or damages to property that may arise from or in connection with this Lease, and the results of Lessee’s use of the Premises , by Lessee, its agents, representatives, employees, or volunteers. Insurance coverage shall be at least as broad as the following:
a. Commercial General Liability. Insurance Services Office (“ISO”) Form CG 00 01 covering Commercial General Liability on an “occurrence” basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury, with limits no less than $2,000,000 per occurrence/$4,000,000 general aggregate. 126
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b. Workers’ Compensation. Workers' Compensation as required by the State of California, with Statutory Limits, and Em ployer’s Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease.
c. Property Insurance. Lessee shall procure and maintain p roperty insurance against all risks of loss to any Lessee improvements or betterments, at full replacement cost with no coinsurance penalty provision . Property insurance shall include not less than $1,000,000 Fire Legal liability on the Premises, including improvements and betterments owned by the City, and shall name the City as a loss payee. Lessee shall also provide fire insurance on all personal property contained within or on the Premises. The policy must be written on an “all risks” basis, excluding earthquake and flood. The contract shall insure for not less than 90% of the actual cash value of the personal property, and Lessee shall name the City as an additional insured. d. Interruption of Business Insurance. Lessee shall, at its sole cost and expense, maintain business interruption insurance by whi ch the minimum monthly rent will be paid to the City for a period of up to one year if the Premises is destroyed or rendered inaccessible by a risk insured against by a policy of standard fire and extended coverage insurance, with vandalism and malicious mischief endorsements.
e. If Lessee maintains broader coverage and/or higher limits than the minimums otherwise required by this Lease, the CITY requires and shall be entitled to the broader coverage and/or the higher limits maintained by Lessee.

14.2 Each insurance policy required by this Lease must be acceptable to the City Attorney and shall meet the following requirements:
a. Acceptability of Insurers. Insurance coverage must be provided by an insurer authorized to conduct business in the state of California with a current A.M. Best’s rating of no less than A-: FSC VII , or as approved by the City.
b. Additional Insured Status. Lessee’s Commercial General Liability policy must name the City (including its officials, officers, agents, employees, a nd volunteers) specifically as an additional insured under the policy on a separate endorsement page. The Commercial General Liability additional insured endorsement shall be at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38, and CG 20 37 if a later edition is used.
c. Primary Coverage. Lessee’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 with respect to the City, its officials, officers, agents, employees, and volunteers. Any insurance or self -insurance maintained by the City, its officials, officers, agents, employees, or volunteers shall be in excess of Lessee’s insurance and shall not contribute with it. d. Notice of Cancellation. Each insurance policy shall provide that coverage shall not be canceled, except with prior written notice to the City. e. Waiver of Subrogation. Lessee hereby grants to the City a waiver of any right to subrogation that any insurer of Lessee may acquire against the City by virtue of the payment of any loss under such insurance. Lessee agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this subsection shall apply regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. Any Workers’ Compensation policy required by this Lease shall be endorsed with a waiver of subrogation in favor of the city for all work performed by Lessee, its agents, representatives, employees and volunteers. 127
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f. Self-Insurance. Lessee may, with the City’s prior written consent, fulfill some or all of the insurance requirements contained in this Lease under a plan of self-insurance. Lessee shall only be permitted to utilize such self-insurance if, in the opinion of the City, Lessee’s (i) net worth and (ii) reserves for payment of claims of liability against Lessee are sufficient to adequately compensate for the lack of other insurance coverage required by this Lease. Lessee’s utilization of self-insurance shall not in any way limit the liabilities assumed by Lessee pursuant to this Lease. g. Self-Insured Retentions . Self -insured retentions must be declared to and approved by the City.

14.3 Verification of Coverage . At the time Lessee executes this Lease, Lessee shall provide the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting the insuran ce coverage required by this Lease), which shall meet all requirements under this Lease. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by this Lease, at any time.

14.4 Special Risks or Circumstances. The City reserves the right, at any point during the term of this Lease, to modify the insurance requirements in this Lease, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

14.5 No Limitation of Obligations . The insurance requirements within this Lease, including the types and limits of insurance cove rage Lessee must maintain, and any approval of such insurance by the City, are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by Lessee pursuant to this Lease, including but not limited to any provisions within this Lease concerning indemnification.

14.6 Failure to comply with any of the insurance requirements in this Lease, including but not limited to a lapse in any required insurance coverage during the term of this Lease, shall be a material breach of this Lease. In the event that Lessee fails to comply with any such insurance requirements in this Lease, in addition to any other remedies the City may have, the City may, at its sole option, (i) immediately terminate this Lease; or (ii) ord er Lessee to immediately vacate the Premises until Lessee demonstrates compliance with the insurance requirements in this Lease.

15. Miscellaneous.

15.1 Provisions Cumulative. All provisions contained herein are cumulative and in addition to and not in limitation of any other rights or remedies available to the City.

15.2 Merger Clause . This Lease and its attachments, if any, constitute the entire understanding of the Parties, and there are no other terms or conditions, written or oral, controlling this matter. In the event of any conflict between the provisions of this Lease and any attachments, the provisions of this Lease shall prevail.

15.3 Anti-Waiver Clause. None of the provisions contained herein shall be waived because of the City’s previous failure to insist upon strict performance, nor shall any provision be waived because the City has waived any other provision, in whole or in part.

15.4 Severability. This Lease shall be performed and shall be enforceable to the full extent allowed by applicable law, and the illegality, invalidity, waiver, or unenforceability of any provision of this Lease shall not affect the legality, validity, applicability, or enforceability of the remaining provisions of this Lease.
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15.5 Choice of Law . This Lease shall be governed by the laws of the State of California. Venue for any action arising from this Lease, including but not limited to matters concerning validity, construction, performance , or enforcement sh all be exclusively in the state or federal courts located in San Diego County, California.

15.6 Entire Lease. This Lease, together with its attachments or other documents, if any, described or incorporated herein, contains the entire Lease and understanding concerning the subject of this Lease and supersedes and replaces all prior negotiations, understandings, or proposed agreements, written or oral, except as otherwise provided herein. Each of the Parties hereto acknowledges that no other Party, nor the agents nor the attorneys for any Party, has made any promise, representation , or warranty whatsoever, express or implied, not contained herein, to induce the execution of this Lease and acknowledges that this Lease has not been executed in reliance upon any promise, representation, or warranty not contained herein. This Lease shall supersede any leases or rental agreements heretofore made or issued for the Premises between the City and Lessee.

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

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

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

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

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

15.12 Counterparts. This Lease may be executed on separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument.

Delivery of an executed signature page of this Lease by electronic means, including an attachment to an email, shall be effective as delivery of an executed original.

15.13 Compliance with Federal, State, and Local Laws . Lessee acknowledges, understands, and agrees that i t is the duty of Lessee , while operating under this Lease , to comply with all federal, state, and local laws, and to indemnify the City from any violation of any such law. Failure to comply with a provisi on of federal , state, or local law shall constitute an Event of Default and is grounds for the City’s immediate termination of this Lease.

15.14 Non-Discrimination. Lessee understands, acknowledges, and agrees that this Lease is made and accepted upon and subject to the condition that there shall be no discrimination against any person or group of persons on account of race, color, religion, sex, sexual orientation, gender identity or expression, national origin, age, disability, or an individual’s status in any group or class protected by applicable federal, state, or local law s, in the use, occupancy, tenure, or enjoyment of the Premises. 129
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Lessee shall not establish or permit any such practice of discrimination with reference to the treatment, selection, location, number, or occupancy of customers, tenants, or vendees on the Premises.

15.15 Hazardous Materials or Contaminated Soil . Lessee shall not place or permit to be placed any chemical, material, or substance now or hereafter defined as or included in the definition of hazardous substances, hazardous wastes, hazardous materials, extremely hazardous waste, restricted hazardous waste, toxic substances, pollutant or contaminant, imminently hazardous chemical substance or mixture, hazardous air pollutant, toxic pollutant, or words of similar import under any local, state, or federal law or under the regulations adopted or publications promulgated pursuant thereto applicable to the Premises, including without limitation the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. § 9601 et seq. (CERCLA); the Hazardous Materials Transportation Act, as amended, 49 U.S.C. § 1801 et seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. § 1251 et seq.; an d the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901 et seq. ( RCRA), that requires special handling in collection, storage, treatment, and/or disposal (“Hazardous Materials”). Lessee also hereby covenants and agrees that if at any time it is determined there are Hazardous Materials or contaminated soils located on the Premises, Lessee shall immediately notify the City. Within 30 days of notice to the City, Lessee shall commence all necessary action, at Lessee's sole cost and expense, to ensure the Hazardous Materials or contaminated soil are removed from the Premises and shall otherwise ensure swift compliance with all applicable federal, state, and local laws and other environmental requirements.

15.16 Special Provisions. Lessee hereby acknowledges that Lessee waives all rights to any form of relocation assistance provided for by local, state, or federal law to which Lessee may be entitled by reason of this Lease.

15.17 Effective Date. Unless a different date is provided in this Lease, the effective date of this Lease shall be the latest date of execution set forth by the names of the signatories below.

15.18 Annual Reporting . In exchange for the low lease rate, L essee shall provide quarterly and annual reports to the Di rector of Economic Development outlining the operations of the Escondido AgX Innovation Hub. Lessee is required to present an annual report to the City Council as a current business item each year for the duration of the lease . Each quarterly and annual report must include the following, but not limited to , status of construction and buildout of the facility, staffing for the facility and associated programs, status of subleases, narrative of businesses supported, number of jobs created, number of events held, any potential obstacles or challenges in achieving goals, and goals for the upcoming fiscal year, any additional information to show progress in achieving what is outlined in the feasibility study.

(SIGNATURE PAGE FOLLOWS)

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IN WITNESS WHEREOF, th e P arties below are authorized to act on behalf of their organizations, and have executed this Lease as of the Effective Date.

CITY OF ESCONDIDO

Date: __________________ ________________________________________ Dane White, Mayor

VINE Institute a California non -profit public benefit
corporation

Date: __________________ __________________________________________ Lon Hatamiya, President

(ABOVE SIGNATURES MUST BE NOTARIZED; ACKNOWLEDGMENT PAGES FOLLOW)

APPROVED AS TO FORM:

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

BY: ______________________________________

Date: __________________________

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ACKNOWLEDGMENT

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

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

WITNESS my hand and official seal.

Signature: ________________________________________ (Seal)

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

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

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

WITNESS my hand and official seal.

Signature: ________________________________________ (Seal)

[Lessee]

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

Legal Description of Premises

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

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RESOLUTION NO. 2025-47

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR

TO EXECUTE, ON BEHALF OF THE CITY, A PUBLIC

SERVICES AGREEMENT WITH THE VINE INSTITUTE TO

PROVIDE START -UP FUNDING FOR THE ESCONDIDO

AGX INNOVATION HUB

WHEREAS, the City of Escondido (“City”) has identified agriculture and agricultural technology as key industries to support future economic growth as part of its Comprehensive Economic Development Strategy (“CEDS”); and
WHEREAS, the City has initiated the development of the Escondido AgX Innovation Hub, a regional center to promote agriculture innovation, entrepreneurship, food systems development, and workforce training, located at 455 North Quince Street, Escondido, CA 92025; and WHEREAS, the City Council is concurrently considering authorization of a Lease Agreement with The VINE Institute (“Vine”) for the operation and management of the Escondido AgX Innovation Hub; and WHEREAS, the City desires to provide start -up financial assi stance to Vine in the amount of $500,000, through a Public Services Agreement, to support tenant improvements, operational development, program creation, and fundraising activities aligned with the Feasibility Study for the AgX Innovation Hub; and
WHEREAS, the City Council has considered the Public Services Agreement proposal and terms, the Staff Report, attachments, and any public comments; and WHEREAS, the proposed Public Services Agreement is attached hereto as Exhibit “A”; and

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WHEREAS, the City Council finds that entering into the proposed Public Services Agreement is in the public interest, furthers the City's economic development goals, and supports the growth of innovation and entrepreneurship in the agricultural sector.

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

1. That the above recitations are true.

2. The Mayor is hereby authorized to execute, subject to final approval as to form by the City Attorney, the Public Services Agreement between the City of Escondido and The VINE Institute, substantially in the form attached hereto as Exhibit “ A,” for the purpose of providing start -up funding to support the Escondido AgX Innovation Hub.

3. The Council finds that this Public Services Agreement advance s the City’s objectives to foster agricultural innovation, promote job creation, support workforce development, and enhance economic sustainability in the region.

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CITY OF ESCONDIDO

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

Between: CITY OF ESCONDIDO
a California municipal corporation
201 N. Broadway
Escondido, CA 92025
Attn: Sean McGlynn
760-839-4897
("CITY")

And: VINE Institute
a California non-profit public benefit corporation
UC Agriculture and Natural Resources
2801 2nd Street
Davis, CA 95618
Attn: Lon Hatamiya, President
520-304-3398
("CONTRACTOR").
(The CITY and CONTRACTOR each may be referred to herein as a “Party” and collectively as the “Parties.”)
WHEREAS, the Parties desire to enter into this Agreement for the performance of the Services described herein.

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

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

2. Compensation. In exchange for CONTRACTOR’s completion of the Services, the CITY shall pay, and CONTRACTOR shall accept in full, an initial sum not to exceed $250,000 to be paid within forty- five (45) days of execution of both this Agreement and the related Lease Agreement . Within forty- five (45) days after the City’s review of the Initial Annual Report and Progress Presentation as described herein, and contingent upon City Council approval of a budget including this item, the CITY shall pay, and CONTRACTOR sha ll accept in full, a second sum not to exceed $250,000.

CONTRACTOR shall be compensated only for performance of the Services described in this 137
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Agreement. No compensation shall be provided for any other work or services without the CITY’s prior written consent. If this Agreement is amended at any time, additional compensation of CONTRACTOR contained in any subsequent amendments shall not exceed a cumulative total of 25% of the maximum payment provided for in this Section 2, unless approved by resolution of the City Council.

3. Performance. CONTRACTOR shall faithfully perform the Services in a proficient manner, to the satisfaction of the CITY, and in accord with the terms of this Agreement . CONTRACTOR shall be responsible for the professional quality, technical accuracy, timely completion, and coordination of all reports and other information furnished by CONTRACTOR pursuant to this Agreement, except that CONTRACTOR shall not be responsible for the accuracy of information supplied by the CITY.

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

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

6. Insurance Requirements.
a. CONTRACTOR shall pro cure and maintain , at its own cost, during the entire term of this Agreement, insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the Services, and the results of such work, by CONTRACTOR, its agents, representatives, employees, or subcontractors. Insurance coverage shall be at least as broad as the following:
(1) Commercial General Liability. Insurance Services Office (“ISO”) Form CG 00 01 covering Commercial General Liability on an “occurrence” basis, including products and completed operations, property damage, b odily injury, and personal & advertising injury, with limits no less than $2,000,000 per occurrence and $4,000,000 general aggregate. (2) Automobile Liability. ISO Form CA 00 01 covering any auto (Code 1), or if CONTRACTOR has no owned autos, hired (Code 8) and non -owned autos (Code 9), with limit s no less than $1,000,000 per accident for bodily injury and property damage, unless waived by the CITY and approved in writing by the CITY’s Risk and Safety Division. (3) Workers’ Compensation. Worker's Compensation as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit s of no less than $1,000,000 per accident for bodily injury or disease.
(4) If CONTRACTOR maintains broader coverage and/ or higher limits than the minimums otherwise required by this Agreement , the CITY requires and shall be entit led to the broader coverage and/or the higher limits maintained by CONTRACTOR. b. Each insurance policy required by this Agreement must be acceptable to the City Attorney and shall meet the following requirements:
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(1) Acceptability of Insurers. Insurance coverage must be provided by an insurer authorized to conduct business in the state of California with a current A.M. Best’s rating of no less than A-: FSC VII, or as approved by the CITY.
(2) Additional Insured Status . Both the Commercial General Liability and the Automobile Liability policies must name the CITY (including its officials, officers, agents, employees, and volunteers) specifically as an additi onal insured under the policy on a separate endorsement page. The Commercial General Liability additional insured endorsement shall be at least as broad as ISO Form CG 20 10 11 85, or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38, and CG 20 37 if a later edition is used. The Automobil e Liability endorsement shall be at least as broad as ISO Form CA 20 01.
(3) Primary Coverage. CONTRACTOR’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 with respect to the CITY, its officials, officers, agents, employees, and volunteers. Any insurance or self -insurance maintained by the CITY, its officials, officers, agents, employees, or volunteers shall be in excess of CONTRACTOR’s insurance and shall not contribute with it. (4) Notice of Cancellation . Each insurance policy shall provide that coverage shall not be canceled, except with prior written notice to the CITY. (5) Subcontractors. If applicable, CONTRACTOR shall requi re and verify that all subcontractors maintain insurance meeting all the requirements stated in this Agreement, and CONTRACTOR shall ensure that the CITY (including its officials, officers, agents, employees, and volunteers) is an additional insured on any insurance required from a subcontractor.
(6) Waiver of Subrogation. CONTRACTOR hereby grants to the CITY a waiver of any right to subrogation that any insurer of CONTRACTOR may acquire against the CITY by virtue of the payment of any loss under such insurance. CONTRACTOR agrees to obtain any endorsement that may be nec essary to affect this waiver of subrogation, but this subsection shall apply regardless of whether or not the CITY has received a waiver of subrogation endorsement from the insurer. Any Workers’ Compensation policy required by this Agreement shall be endorsed with a waiver of subrogation in favor of the CITY for all work performed by the CONTRACTOR, its agents, representatives, employees and subcontractors.
(7) Self-Insurance. CONTRACTOR may, with the CITY’s prior written consent, fulfill some or all of the i nsurance requirements contained in this Agreement under a plan of self - insurance. CONTRACTOR shall only be permitted to utilize such self -insurance if, in the opinion of the CITY, CONTRACTOR’s (i) net worth and (ii) reserves for payment of claims of liability against CONTRACTOR are sufficient to adequately compensate for the lack of other insurance coverage required by this Agreement. CONTRACTOR’s utilization of self- insurance shall not in any way limit the liabilities assumed by CONTRACTOR pursuant to this Agreement.
(8) Self-Insured Retentions. Self-insured retentions must be declared to and approved by the CITY.
c. Verification of Coverage. At the time CONTRACTOR executes this Agreement, CONTRACTOR shall provide the CITY with original Certificates of Insu rance including all required amendatory endorsements (or copies of the applicable policy language effecting the insurance coverage required by this Agreement), which shall meet all requirements under this Agreement. The CITY reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by this Agreement, at any time. d. Special Risks or Circumstances. The CITY reserves the right , at any point during the term of this Agreement, to modify the insurance requirements in this Agreement, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. 139
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e. No Limitation of Obligations. The insurance requirements in this Agreement, including the types and limits of insurance coverage CONTRACTOR must maintain, and any approval of such insurance by the CITY, are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONTRACTOR pursuant to this Agreement, including but not limited to any provisions in this Agreement concerning indemnification. f. Failure to comply with any of the insurance requirements in this Agreement, including but not limited to a lapse in any required insurance coverage during the term of this Agreement, shall be a material breach of this Agreement . In the event that CONTRACTOR fails to comply with any such insurance requirements in this Agreement, in addition to any other remedies the CITY may have, the CITY may, at its sole option, (i) immediately terminate this Agreement; or (ii) order CONTRACTOR to stop work under this Agreement and/or withhold any payment that becomes due to CONTRACTOR until CONTRACTOR demonstrates compliance with the insurance requirements in this Agreement.

7. Indemnification, Duty to Defend, and Hold Harmless.
a. CONTRACTOR (including CONTRACTOR’s agents, employees, and subcontractors, if any) shall indemnify, defend, and hold harmless the CITY, its officials, officers, agents, employees, and volunteers from and against any and all claims, demands, actions, causes of action, proceedings (including but not limited to legal and administrative proceedings of any kind), suits, fines, penalt ies, judgments, orders, levies, costs, expenses, liabilities, losses, damages, or injuries, in law or equity, including without limitation the payment of all consequential damages and attorney’s fees and other related litigation costs and expenses (collect ively, “Claims”), of every nature caused by, arising out of, or in connection with CONTRACTOR’s performance of the Services or its failure to comply with any of its obligations contained in this Agreement, except where caused by the sole negligence or willful misconduct of the CITY. b. CONTRACTOR (including CONTRACTOR’s agents, employees, and subcontractors, if any) shall defend, indemnify, and hold harmless the CITY, its officials, officers, agents, employees, and volunteers from and against any and all Claims caused by, arising under, or resulting from any violation, or claim of violation, of the San Diego Municipal Storm Water Permit (Order No.

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

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

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

11. Amendment. This Agreement shall not be amended except in a writing signed by the CITY and CONTRACTOR.
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12. Merger Clause. This Agreement, together with its attachments or other documents described or incorporated herein, if any, constitutes the entire agreement and understanding of the CITY and CONTRACTOR concerning the subject of this A greement and supersedes and replaces all prior negotiations, understandings, or proposed agreements, wri tten or oral, except as otherwise provided herein. In the event of any conflict between the provisions of this Agreement and any of its attachments or related documents, if any, the provisions of this Agreement shall prevail.

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

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

15. Governing Law. This Agreement and all rights and obligations arising out of it shall be construed in accordance with the laws of the State of California. Venue for any action arising from this Agreement shall be conducted only in the state or federal courts of San Diego County, California.

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

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

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

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

20. Compliance with Laws, Permits, and Licenses. CONTRACTOR shall keep itself informed of and comply with all applicable federal, state, and local laws, statutes, codes, ordinance s, regulations, rules, and other legal requirements in effect during the term of this A greement. CONTRACTOR shall obtain any and all permits, licenses, and other authorizations necessary to perform the Services. Neither the CITY, nor any elected or appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of CONTRA CTOR to comply with this section.

21. Prevailing Wages . If applicable, pursuant to California Labor Code section 1770 et seq. , CONTRACTOR agrees that a prevailing rate and scale of wages, in accordance with applicable laws, shall be paid in performing this Agreement. CONTRACTOR shall keep itself informed of and comply with all applicable federal, state, and local laws, statutes , codes, ordinances, regulations, rules, and other legal requirements pertaining to the payment of prevailing wages. The prevailing rate and scale to be paid shall be the same as t he applicable “General Prevailing Wage Determination” approved by the Department of Industrial Relations as of the Effective Date of this Agreement, which are available online at http://www.dir.ca.gov/oprl/dprewagedetermination.htm and incorporated into this Agreement by this reference . Neither the CITY, nor any elected or 141
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appointed boards, officers, officials, employees, or agents of the CITY, shall be liable, at law or in equity, as a result of any failure of CONTRACTOR to comply with this section.

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

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

24. [Intentally Omitted]

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

CITY OF ESCONDIDO

Date: __________________ ___________________________________ Dane White, Mayor

The VINE Institute

Date: __________________ ___________________________________ Lon Hatimiya, President

APPROVED AS TO FORM:

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

BY: __________________________

DATE: __________________

THE CITY OF ESCONDIDO DOES NOT DISCRIMINATE AGAINST QUALIFIED PERSONS WITH DISABILITIES.

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ATTACHMENT “A”
Scope of Work

A. General

Vine Institute, a California non-profit benefit corporation (“Contractor”) shall provide the City of Escondido (“City”) start-up and development services for the Escondido AgX Innovation Hub.

Contractor will be responsible for implementing activities that support facility operations, tenant improvements, program development, fundraising efforts, and overall operational capacity at the Escondido AgX Innovation Hub, consistent with the recommendations outlined in the Escondido AgX Innovation Hub Feasibility Study, which is attached to this Scope of Work as Exhibit 1 and incorporated herein by this reference.

B. Location

The services under this Agreement will be performed at the City-owned property located at 455 N. Quince St ., Escondido, CA 92025 . A separate Lease Agreement will be executed concurrently with this Agreement.

C. Services

Contractor shall undertake the following activities during the Term of this Agreement:

1. Facility Startup and Renovations
 Initiate tenant improvements and renovations t o the facility in accordance with the Escondido AgX Innovation Hub Feasibility Study.
 Prepare the site for incubation of AgTech start -ups, food system development, and regional partnership activities.
 Utilize initial funding for engineering and architectural design for refurbishment of the building and overall site, including:

1. Food hub infrastructure design and building utilization.

2. Basic site development, including electrical, plumbing, water, and wastewater systems.

2. Operational Planning and Launch
 Develop and implement an operational framework to support program delivery at the Escondido AgX Innovation Hub.
 Recruit tenants and program partners that align with the proposed uses of an AgTech incubator, food hubs, and CPG labs.
 Utilize initial funding for administrative staffing, including project management and day-to-day administration.

3. Program Development
 Design and launch early -stage entrepreneurship programming, workforce development initiatives, and food system strengthening activities consistent with the Feasibility Study goals.
 Coordinate educational and outreach events to position the Escondido AgX Innovation Hub as a regional center of excellence.

4. Fundraising and Resource Development
 Launch external fundraising efforts to leverage City investment and attract additional capital, grants, and sponsorships.
 Use second -phase funding to enhance administrative staffing for sustainable grant funding development, targeting federal, state, and philanthropic sources.  Develop ongoing subleases for tenants and innovation center users.

5. Facility and Program Expansion
 Support ongoing phased development of specialized facilities, including:
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1. Wet lab facilities, test kitchens, and consumer packaged goods (CPG) lab design and buildout.

6. Annual Reporting
 Submit an Annual Report to the City no later than 12 months after initial disbursement, demonstrating:

1. Compete and detailed accounting of all funding detailed in this agreement

2. Progress toward achieving operational goals of the AgX Innovation Hub.

3. Fundraising results and additional investments secured.

4. Programmatic achievements and tenant milestones.

5. Challenges and future action plan for continued growth.

D. Scheduling

The Contractor will continue to perform the services outlined in this Agreement, including the related Lease for the Escondido AgX Innovation Hub, for a period of 13 years following the second disbursement, unless the Lease is terminated prior to that time. This ongoing commitment ensures the sustained operation, growth, and development of the AgX Innovation Hub as outlined in the Escondido AgX Feasibility Study and the scope of work defined in this Agreement.

Deliverable Due Date Notes
Contractor to submit to the
City’s satisfaction an Initial
Facility Startup Plan and
Renovation Schedule
Within 60 days of the
Effective Date of this
Agreement
Plan for improvements and
startup timeline.

The City to make the f irst
Disbursement of $250,000
Within 45 days of
execution of Lease
between the VINE
Institute and the City for
455 N . Quince St.,
Escondido, CA 92025
(“Lease”) and this
agreement
Payable upon City
verification of lease
execution and this
agreement
Contractor to provide an
Annual Report and Progress
Presentation to the
satisfaction of the City.

Within 12 months of
Lease execution
Contractor is r equired to
submit the Annual Report
and present to the
Escondido City Council for
second $250,000
disbursement.

Second Disbursemen t of
$250,000 (Contingent upon
City Council budget approval)
Upon City review and
acceptance of Annual
Report
Subject to City Council
programming of funds in
the following fiscal year.

Inquires relating to this Agreement, including scheduling and coordination with City staff, may be directed to Jennifer Schoeneck, Director of Economic Development, at 760 -644-5194 or [email protected] and Pedro Cardenas, Management Analyst II at 760-839- 4588 or [email protected].

E. Contract Price and Payment Terms

Payment under this Agreement shall be as follows:

 Initial Payment of $250,000 shall be issued within 45 days of the Effective Date of this Agreement. This Initial Payment will support activities including but not limited to:
o Engineering and architectural design for facility refurbishment and site development;
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o Basic site improvements (electrical, plumbing, water, and wastewater systems) and
o Initial administrative staffing, including project management and day -to-day administration.
o Any remaining services detailed in Section C of this agreement  Second Payment of $250,000 is contingent upon City Council approval of a budget including this item, and may be issued within 45 days of the City’s acceptance of the Annual Report with prior approval of the Escondido City Council. This funding will support activities including but not limited to:
o Continued administrative staffing to pursue sustainable grant funding and tenant development.
o Phased development of wet lab, test kitchen, and consumer packaged goods (CPG) lab facilities.

If this Agreement or the Lease is terminated at any time, any unused portion of the funds provided by the City shall be promptly returned to the City. This provision shall survive any termination of this Agreement.

F. Term

The term of this Agreement shall be for a period of 15 yearscommencing on the Effective Date of this Agreement, or until any earlier terminaton of the Lease.

G. Other

Prior to starting work, Contractor shall obtain any City permits at their sole expense.

Contractor may use the name “Escondido AgX” for its work related to this project, however Contractor agrees not to use that name for its work in any context outside of this project, and not to use that name after termination of this Agreement. Contractor covenants that any subleases entered into related to this project will include a provision prohibing sublessees from using the name “Escondido AgX.”
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FEASIBILITY

STUDY FOR THE

DEVELOPMENT OF

THE AG X INNOVATION

CENTER IN ESCONDIDO,

CALIFORNIA
October 2024
prepared by

INSTITUTE
Attachment "1"
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Table of Contents
I. EXECUTIVE SUMMARY
A
. M

ETHODOLOGY
B. KE

Y FINDINGS AND RECOMMENDATIONS
Ke
y Findings
R
ecommendations
C. C

ONCLUSIONS
II
. TH

E NEED AND VISION FOR AN AG X INNOVATION CENTER

IN ESCONDIDO, CALIFORNIA
A. O

VERVIEW
B. CI

TY OF ESCONDIDO COMPREHENSIVE ECONOMIC

DEVELOPMENT STRATEGY AND CALIFORNIA JOBS
FIRST – GUIDING PRINCIPLES FOR AGRICULTURAL

INNOVATION
C.

N DIEGO COUNTY AND ESCONDIDO AGRICULTURAL

CHARACTERISTICS
III. CON

SIDERATION OF AGRICULTURAL TECHNOLOGY USES

FOR THE ESCONDIDO AG X INNOVATION CENTER
IV. RE

COMMENDED PROGRAMS AND SPECIFICATIONS OF AN

ESCONDIDO AG X INNOVATION CENTER AND INCUBATOR
AT 455 N. QUINCE STREET
A.

REG

IONAL FOOD HUB
B. IN

CUBATOR SPACE FOR AGTECH COMPANIES
C. CO

NSUMER-PACKAGED GOODS FOOD AND BEVERAGE

LAB AND TEST KITCHEN
D. AG

RITOURISM COORDINATING CENTER
E. “G
ROWN IN SAN DIEGO” BRAND RE-EMPHASIS
V. PR

OPOSED DESIGN ALTERNATIVES AND TECHNICAL

NEEDS OF AN ESCONDIDO AG X INNOVATION CENTER AND
INCUBATOR AT 455 N. QUINCE STREET
VI.

NANCIAL PROFORMA AND PHASED BUSINESS PLAN AND

POTENTIAL FUNDING SOURCES
A. C

OST ITEMS
B. RE
VENUES
C. AD

DITIONAL POTENTIAL FUNDING SOURCES
VII. C

ONCLUSIONS
VIII. A

PPENDICES
3 5
6 7
9 10
11 14
17 20
21 26
30 33
37 39
44 45
50 51
54 56
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EXECUTIVE

SUMMARY
Attachment "1"
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4 feasibility study for the development of the ag x innovation center in escondido, california The Vine Institute, a California nonprofit public benefit corporation created to support innovators and entrepreneurs working in agriculture, food systems, and related technology, was retained by the City of Escondido, California to perform an independent and objective feasibility analysis for the establishment of an agricultural innovation center at the City owned property at 455 N. Quince Street.

The City of Escondido has a long history of agricultural production and heritage with the potential to blossom further into a modern hub for agricultural technology and innovative practices. Escondido has long been a fertile ground for diverse agricultural endeavors. Historically, the

FEASIBILITY STUDY FOR THE

DEVELOPMENT OF THE AG X

INNOVATION CENTER IN ESCONDIDO,

CALIFORNIA

SUMMARY OF KEY FINDINGS
The Ag X Innovation Center Feasibility Study was conducted to determine the best use for the existing city-owned property and buildings at 455 N. Quince Street in Escondido, California. Based upon key findings developed as a result of extensive data analysis, independent research and review, individual stakeholder interviews, and targeted group discussions, the following goals are set forth:

1. Cr
eate a shared vision for the Ag X Incubator and Program

2. Id
entify the current market landscape for agricultural technology innovation in California, the United States, and across the globe

3. Ev
aluate various design alternatives and technical needs of the incubator

4. Id
entify building and program requirements and specifications

5. De
velop an operating proforma model and phase 1 business plan Attachment "1"
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5 feasibility study for the development of the ag x innovation center in escondido, california area was known for its citrus groves and vineyards, which laid a strong foundation for a thriving agricultural economy. Over the years, the focus has expanded to include a variety of crops, especially avocados, and innovative farming techniques, responding to the evolving demands of both markets, climate, and evolving demographics within San Diego County and Southern California.

We have endeavored to: (1) create a shared vision for the Ag X Innovation Center; (2) analyze the current agricultural technology market situation across San Diego County, California, the United States and around the world; (3) evaluate possible design alternatives and technical needs of the Ag X Incubator; (4) identify building and program requirements and specifications for the proposed uses for 455 N. Quince Street in Escondido; and (5) provide a sustainable operating proforma model and phase 1 business plan.

A. M ETHODOLOGY
To identify and develop recommendations for the practical creation of the Ag X Innovation Center in Escondido, California, we began by analyzing the need for agricultural technology innovation and the current and future trends across California, the United States, and around the world. We considered the current socio-economic makeup of the City of Escondido and the surrounding areas of San Diego County’s agricultural production and processing and the region’s role in creating opportunities for future food and agricultural production and related technology development.

Second, we solicited stakeholder input targeting agricultural industry leaders, processors, Ag X current and potential stakeholders, trade associations, agricultural technology startups, local government, and university officials, as well as complementary professionals, including economic development directors from neighboring communities in San Diego County. We also interviewed individuals who have experience with the technology sector generally in the San Diego region.

Third, we reviewed and analyzed potential agricultural innovation options to be included in the Escondido Ag X Innovation Center. These options emanated from our extensive review and analysis of existing technology innovation centers across the country and around the world Attachment "1"
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6 feasibility study for the development of the ag x innovation center in escondido, california as well as a review of the greatest needs for agricultural technology advancements now and into the future, especially those beneficial to San Diego County and the surrounding region.

Finally, we performed a financial analysis to develop an initial business plan/proforma to ensure the feasibility, long-term viability, and sustainability of the Escondido Ag X Innovation Center. This was based upon existing market conditions, presumptive costs and expenses, projected revenue streams, and other relevant criteria.

We also recommended various potential funding opportunities for consideration.

B. KEY FINDINGS AND
R

ECOMMENDATIONS

KEY FINDINGS
• The City of Escondido and San Diego County is home to a di
verse agricultural community.
• Lo
cal and regional agricultural production is threatened by increasing costs of production, conversion of agricultural land, and international competitive pressures.
• The C
ity of Escondido has prioritized Agriculture and AgTech Development through its five-year Community Economic
Development Strategy (CEDS).
•
Th
e San Diego Border Region through the California Jobs
First Program has also determined that Agriculture and
Sustainable Food Systems are a top priority.
•
The
City of Escondido has a dedicated property to develop
an Ag X Innovation Center and Incubator.
• De
velopment of an Ag X Innovation Center can become an
economic driver and job creator for the City of Escondido and the surrounding region.

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7 feasibility study for the development of the ag x innovation center in escondido, california

RECOMMENDATIONS
Based upon the aforementioned analysis and consideration, the following recommendations for the creation of an Escondido Ag X Innovation Center are set forth:

1. De
velop a Regional Food Hub for aggregation and distribution of locally produced agricultural products.

2. De
velop a Business Incubator to nurture existing agricultural technology companies and to develop start-up opportunities for innovative and regional applicable technologies.

3. Cr
eate a Consumer-Packaged Goods (CPG) Laboratory
along with appropriate Test Kitchen facilities to support local and regional emerging CPG food companies and
entrepreneurs focused on the emerging local and regional market demands.

4. Sup
port local AgriTourism efforts through the development
of collaborative practices, applications, and land use
partnerships within the region.

5. Bu
ild upon the “Grown in San Diego” brand with the goal to further develop intentional placemaking, marketing, and differentiation of locally grown products.

C. C ONCLUSIONS
Through its long history of agricultural production and strong cultural heritage, the City of Escondido has the potential to emerge as a modern hub for agricultural innovation and sustainable creative practices.

Escondido is uniquely positioned to be a leader in the region for this economic cluster, offering existing land, supply chain resources, and infrastructure such as the Membrane Filtration and Reverse Osmosis (MFRO) water facility, a rail spur, and especially, the property at 455 N. Quince Street.

As this extensive feasibility analysis concludes and given the aforementioned attributes of the City of Escondido, we recommend Attachment "1"
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8 feasibility study for the development of the ag x innovation center in escondido, california the creation of the Ag X Innovation Center at 455 N. Quince Street. The creation of the Ag X Innovation Center would be a unique proposition and catalytic venue to spur agricultural development appropriate for Escondido and the San Diego/Southern California region for the next several decades.

The overall foundational need and vision for the creation of an Ag X Innovation Center is based in the City’s CEDS, San Diego County’s Jobs First priority, and the current status of agriculture across San Diego County, and most specifically within the City of Escondido. For agriculture to remain viable and vibrant, an Ag X Innovation Center is essential for the continued development of creative and innovative practices for food and agricultural production into the future.

Not all AgTech needs to be cutting edge or breakthrough but should be readily applicable to the specific needs of the local and regional community, industry, and marketplace. Creative practices that maximize a locality’s specialties and strengths are just as important for the long- term sustainability of the food and agricultural sector.

Therefore, the mix of recommended programs and activities in a newly created Ag X Innovation Center at 455 N. Quince Street in Escondido, CA will provide the necessary epicenter for local and regional agricultural and economic development.

Attachment "1"
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II.

THE NEED AND

VISION FOR AN AG X

INNOVATION CENTER

IN ESCONDIDO,

CALIFORNIA
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10 feasibility study for the development of the ag x innovation center in escondido, california A. OVERVIEW
Settled in a long valley in the coastal mountains of Southern California, Escondido, which means “hidden” in Spanish, lies about 18 miles inland, 100 miles south of Los Angeles, and 30 miles northeast of San Diego. Surrounded by avocado and citrus groves, the City is a diverse, vibrant community. More and more people are making Escondido their “City of Choice.” As the heart of San Diego North, it is one of the few remaining communities where people of all income levels can enjoy the Southern California lifestyle. It offers attractive homes in a wide range of prices, two lakes, several parks, a sports center, golf courses, restaurants, wineries, shopping centers, comprehensive healthcare, and the nearby San Diego Zoo Safari Park. In addition, the California Center for the Arts, Escondido, brings world-class entertainment to the area along with Queen Califia’s Magical Circle, a sculpture garden in Kit Carson Park donated by late internationally renowned artist Niki de Saint Phalle. In recent years Escondido was named by Money Magazine as the Best Place in the West in which to retire and, at the other end of the spectrum, was named a Kid-Friendly City for its broad range of youth programs. Ladies Home Journal also ranked Escondido number eight among the Top Ten Cities for Government.
1 Established in 1888, the city’s rich past brings charm and stability to the community. Integrated with Escondido’s treasured heritage is a progressive future, bright and brimming with promise. New jobs, new cultural amenities, new entertainment venues, new choices for residential living, and a new vision for Escondido’s future, make Escondido a city to consider with potential opportunities to grow its economic base into the future.

In addition, Escondido also has a long history of agricultural production and strong heritage with the potential to blossom further into a modern hub for agricultural technology and innovative practices. The City of Escondido has long been a fertile ground for diverse agricultural endeavors. Historically, the area was known for its citrus groves and vineyards, which laid a strong foundation for a thriving agricultural economy. Over the years, the focus has expanded to include a variety of crops, especially avocados, and innovative farming techniques, responding to the evolving demands of both markets and climate. 2 1 ht tps://www.escondido.gov/
2 ht tps://freshbrewedtech.com/cultivating-innovation-escondidos- thriving-agricultural-sector-and-its-future-in-agtech/
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11 feasibility study for the development of the ag x innovation center in escondido, california B. C ITY OF ESCONDIDO

COMPREHENSIVE ECONOMIC

DEVELOPMENT STRATEGY AND
CALIFORNIA JOBS FIRST – GUIDING

PRINCIPLES FOR AGRICULTURAL

INNOVATION
In 2023, the City of Escondido updated its five-year Comprehensive Economic Development Strategy (CEDS) for 2023-2028. The CEDS is a strategic plan intended to guide and inform local policymaking over a five-year period. In addition to bringing together place-based analysis, community feedback and strategic guidance, it also qualifies communities for partnership with federal agencies such as the U.S.

Department of Commerce’s Economic Development Administration (EDA), to apply for and receive infrastructure grants and other forms of funding. It is updated every five years, with annual reports on the local jurisdiction’s progress in achieving the action plan outlined in the document. The City of Escondido’s previous CEDS was completed in 2018.

Escondido’s CEDS recommends that the City pursue an economic development strategy that is focused on improving four community fundamentals, including:
•
F
undamental 1 -
B
alancing of Population Growth Rates
•
F
undamental 2 -
D
evelopment of More Economic

Opportunities
•
F
undamental 3 -
A
ctively Maximize the Value of Land
•
F
undamental 4 - D
evelopment of Intentional Placemaking

and Marketing
From these four community fundamentals, Escondido’s CEDS further recommends strategic priorities and initiatives across three thematic areas, including:
○ T
hematic Area 1:

S
treamlined Industry Targeting
○ T
hematic Area 2:

P
romotion of Entrepreneurship and

C
ommercialization
○ T
hematic Area 3:

C
reation of a Downtown Destination

D
istrict
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12 feasibility study for the development of the ag x innovation center in escondido, california Most specifically, the need and vision for the development of an Ag X Innovation Center within the City of Escondido emanates from these basic community fundamentals (especially Fundamentals 2 through 4) and focused thematic areas (i.e., 1 and 2 as noted below).

Under Thematic Area 1, Escondido’s CEDS recommends that the first targeted cluster is Agriculture and AgTech. These related areas evolve from the city’s historical strengths in farming and ranching, and aim to preserve and grow existing agriculture operations, food packaging, and food production companies. Escondido is uniquely positioned to be a leader in the region for this cluster, offering existing land, supply chain resources, and infrastructure such as the Membrane Filtration and Reverse Osmosis (MFRO) water facility, a rail spur, the property at 455 N. Quince Street, and the San Diego County Farm Bureau. The city’s growing professional services and technology industry coupled with historical strengths in agriculture and food offer the opportunity to grow as an Agriculture and AgTech hub for Southern California, conveniently located between Los Angeles and Imperial Counties. 3 Moreover, Escondido’s CEDS recommends that another targeted cluster is Tourism or Agritourism , including food and beverage businesses.

Escondido can offer niche tourism experiences that take advantage of the area’s excellent agriculture, wineries, and breweries, including emerging Agritourism opportunities locally and nearby in north San Diego County.

Additionally, under Thematic Area 2 , Escondido’s CEDS further recommends the promotion of entrepreneurship and early-stage scaling including AgTech development, testing, prototyping, and low- scale manufacturing, and processing.
4 The relevant environments for
these activities are home offices and laboratories, small office buildings, and small warehouses that might have formerly accommodated local services like auto repair and storage. In other words, Escondido should seek to foster the kinds of manufacturing activities that can fit in the spaces it has available.

The overarching goal of all these fundamentals and themes outlined under Escondido’s CEDS is job creation and workforce development 3 Cit y of Escondido Comprehensive Economic Development Strategy (CEDS) 2023-2028, pg. 57, Beacon Economics.
4 Cit y of Escondido Comprehensive Economic Development Strategy (CEDS) 2023-2028, pg. 61, Beacon Economics.

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13 feasibility study for the development of the ag x innovation center in escondido, california with higher paying jobs generated within the City of Escondido. This important goal is also highlighted in California’s Jobs First Initiative.

San Diego County and the City of Escondido are part of the California Jobs First Southern Border Coalition, including San Diego and Imperial Counties. The Coalition aims to foster long-term economic resilience across San Diego and Imperial Counties, and coordinates competitive applications for additional funding from the state government.

The Coalition is comprised of community of environmental justice organizations, regional economic development entities, labor unions, community-based organizations (CBOs), local governments, educational institutions, and Indigenous Tribes working together to create an equitable economic development plan for the region.

The Southern Border Coalition of California Jobs First submitted its Regional Plan Part 2 at the end of August 2024. In this Regional Plan, priority industry sector strategies were identified, and the highest priority within the San Diego County Subregion was Agriculture + Sustainable Food Systems.
5 More specifically, the Plan6 highlights the
importance of cultivating an equitable and sustainable agricultural and food system sector in San Diego County through
7:

1. P
reserving agricultural land and soils and committing to long- term production

2. I
ncreasing the viability of local farms, fisheries, and food businesses

3. S
caling up local, sustainable, and equitable food value chains

4. El
evating wages and working conditions, and improving
career pathways

5. I
mproving community food environments
5 ht tps://cajobsfirst.sdsu.edu/#:~:text=The%20Southern%20 Border%20Coalition%20is%20part%20of%20California’s%20
California%20Jobs
6 C alifornia Jobs First Southern Border Coalition, Regional Plan Part 2, submitted August 31, 2024.
7 San Diego Agricultur e + Sustainable Food Systems Industry Sector Form, submitted August 31, 2024.

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14 feasibility study for the development of the ag x innovation center in escondido, california C. S AN DIEGO COUNTY AND

ESCONDIDO AGRICULTURAL

CHARACTERISTICS
In San Diego County, agriculture contributes $2.88 billion to the economy and supports nearly 17,000 jobs. Agriculture in San Diego County has exceptional diversity that provides economic stability within agriculture and to the broader county economy.
8 In 2022, the
total number of acres grown in the San Diego region was 214,438 acres, while the total value of production was $1,776,799,614.

Nursery and crop flower products made up 69% of the region’s total crop production in 2022, while fruit and nut crops were the second most prominent crop group, making up 17% of total crop production.

More specifically, the top 10 crops in the region in 2022, as well as associated acres harvested and economic value for each, is outlined in Table 1, Top 10 Crops, Acres Harvested, and Economic Value.

TABLE 1: TOP 10 CROPS IN SAN DIEGO COUNTY, 2022
Source: https://awmsdcropreport.com and https://www.sdfarmbureau.org/top-crops/ Crop Acres Harvested Economic Value
Bedding plants 1,927 $445,359,543
Ornamental trees and shrubs 4,662 $375,080,420
Indoor flowering and foliage 870 $310,568,221
Avocados 12,597 $122,828,221
Vegetables 2,526 $113,080,084
Livestock and poultry – $94,389,528
Lemons 2,847 $73,922,314
Oranges 3,728 $38,203,806
Other cut fruit and bulbs 830 $32,437,482
Citrus, avocado, and
subtropical fruit trees 216 $22,352,065
8 ht tps://www.sandiegocounty.gov/content/dam/sdc/awm/docs/ SDAgImpact.pdf
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15 feasibility study for the development of the ag x innovation center in escondido, california Additionally, there were approximately 4,031 farms across San Diego County in 2022, with the median size of farms of 5 acres. 9 Table 2 highlights the number farms by size across the county:

TABLE 2: FARMS BY SIZE, SAN DIEGO COUNTY, 2022
Source: United States Census of Agriculture, 2022
More specifically, the Escondido agricultural sector reflects the importance of avocado production across the county. A recent study prepared for the California Avocado Commission by ERA Economics highlights the changes and impacts of avocado production on Escondido and San Diego County.
10 As recently as 2006, the majority of avocados consumed in the U.S. came from California. Now less than 10% of U.S. consumed avocadoes are grown in the state. Avocado acreage in San Diego County has decreased substantially, by 35% from 2012 to 2022. Acreage for the 2022-2023 season is down 14% more. The causes of this decline are many but mainly due to the increasing cost of farming and increasing competition from Mexican avocado imports.

Additionally, avocado growers operate in a competitive market and have limited ability to pass on higher input costs. As water, labor, and material input costs increase this reduces income for Escondido area Farms by Size Number
1 to 9 acres 2,790
10 to 49 acres 849
50 to 179 acres 260
180 to 499 acres 107
500 to 999 acres 20
1,000 acres or more 35
9 United States Census of Agriculture, 2022,
ht
tps://www.nass.usda.gov/Publications/AgCensus/2022/Full_Report/Volume_1,_ Chapter_2_County_Level/California/st06_2_001_001.pdf
10 “Economic Contribution and Ecosystem Service Value of Avocados in the Escondido Area,” pr
epared

for

the

California

Avocado

Commission

ERA

Economics,

September

2024.

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16 feasibility study for the development of the ag x innovation center in escondido, california growers, forcing some to exit the industry. 11 Avocado producers in Mexico have lower costs, which offers an advantage over Escondido area growers and threatens U.S. food security and the ability to produce domestically within San Diego County. Every avocado produced at the farm generates additional local economic activity. The total economic impact contribution of San Diego County agriculture exceeds $2.8 billion per year, creates directly and indirectly nearly 30,000 part-time and seasonal jobs, and supports more than 7,000 other jobs in local industries. Of this, around 700 jobs and $40 million in output value are from avocado growers in Escondido.
12 In summary, the overall foundational need and vision for the creation of an Ag X Innovation Center is based in the City’s CEDS, San Diego County’s Jobs First priority, and the current status of agriculture across San Diego County, and most specifically within the City of Escondido.

In order for agriculture to remain viable and vibrant, an Ag X Innovation Center is essential for the continued development of creative and innovative practices for food and agricultural production into the future.

The following feasibility analysis explores several recommended programs for an ideal Ag X Innovation Center in the City of Escondido and outlines several leading innovative agricultural technological solutions that will make Escondido a hub for leading-edge agricultural innovation into the 21
st century and beyond.
11 “Economic Contribution and Ecosystem Service Value of Avocados in the

Escondido

Area,”

prepared

for

the

California

Avocado

Commission
b
y

ERA

Economics,

September

2024,

pg.3.
12 Ibid.

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III.

CONSIDERATION

OF AGRICULTURAL

TECHNOLOGY USES

FOR THE ESCONDIDO

AG X INNOVATION
CENTER
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18 feasibility study for the development of the ag x innovation center in escondido, california Agricultural Technology (AgTech) is the application of innovative technologies to enhance various agricultural processes, including plant, animal, and aquaculture farming. In ancient times, simple tools such as hoes made from sticks and stones, or forked sticks used to create trenches for planting seeds
13, represented significant technological
advances that improved agricultural practices and, by extension, the human condition.

Today, the spirit of innovation continues with the integration of AgTech into various aspects of agriculture. AgTech is the use of technology in agriculture with the aim of improving yield, efficiency, and profitability. This includes, but is not limited to, new products, services, applications, and often more specifically, biotechnology, regenerative agriculture, controlled environment agricultural practices (CEA), and the Internet of Things (IoT).
14 However, not all AgTech
needs to be cutting edge or breakthrough but should be readily applicable to the specific needs of the local and regional community, industry, and marketplace. Creative practices that maximize a locality’s specialties and strengths are just as important for the long- term sustainability of the food and agricultural sector.

We have focused our analysis on several programs and innovative practices that are most appropriate for the City of Escondido and San Diego County. We conducted over sixty stakeholder interviews and four focus groups, targeting agricultural industry leaders, growers, processors, City of Escondido stakeholders, trade associations, agricultural technology startups, local government officials, as well as other San Diego-area complementary professionals and industries.

Overall, the proposed project received a positive impression, with growers, economic development entities, and local government leaders expressing the most enthusiasm. Interviewees showed positivity about the city’s proposed location and overall direction.
13 ht tps://www.tstar.com/blog/history-of-agriculture-equipment- important-developments-and-examples#:~:text=The%20
earliest%20innovations%20involve%20the,emerged%20over%20 5000%20years%20BC.

14 https://www.startus-insights.com/innovators-guide/
agriculture-trends-innovation/
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19 feasibility study for the development of the ag x innovation center in escondido, california As a result, through this interactive process we have identified the following coordinated five prong approach to deliver and develop a sustainable model for San Diego and Escondido agriculture:

1. D
evelop a Regional Food Hub for aggregation and distribution of locally produced agricultural products.

2. D
evelop a Business Incubator to nurture existing agricultural technology companies and to develop start-up opportunities for innovative and regional applicable technologies.

3. C
reate a Consumer-Packaged Goods (CPG) Laboratory along
with appropriate Test Kitchen facilities to support local and regional emerging CPG food companies and entrepreneurs
focused on the emerging local and regional market demands.

4. Su
pport local AgriTourism efforts through the development of collaborative practices, applications, and land use partnerships within the region.

5. B
uild upon the “Grown in San Diego ” brand with the goal to further develop intentional placemaking, marketing, and differentiation of locally grown products.

The following analysis discusses each of these programmatic areas in detail and highlights their interconnected and collaborative relevance to the vision and need of the City of Escondido in creating an Ag X Innovation Center. These programs also directly reflect the importance of Escondido’s CEDS and the Southern Border Region Jobs First priorities.

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I V.

RECOMMENDED

PROGRAMS AND

SPECIFICATIONS OF

AN ESCONDIDO AG X

INNOVATION CENTER

AND INCUBATOR AT
455 N. QUINCE STREET
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21 feasibility study for the development of the ag x innovation center in escondido, california The City of Escondido-owned site at 455 N. Quince Street (see Figure 1 below) is the proposed location for the Ag X Innovation Center. The parcel is approximately 3.48 acres, and the existing buildings are approximately 40,680 square feet. The buildings are a mix of high ceiling warehouse space with roll-up doors and one-story offices appropriate for mixed uses as projected. The site also includes a large parking area that can be utilized for off-loading products and preparation of deliveries as well as enough space to develop alternative uses related to the proposed programs.

Figure 1: 455 N. Quince Street, Escondido, CA with approximate square footage.

A. R egional Food Hub
Across the United States over the last several years, many communities have identified the need for expanded regional “agricultural infrastructure” to strengthen the local and regional food system and the region’s many agricultural producing communities. Agricultural infrastructure commonly is defined to encompass aggregation, packing, processing, marketing and distribution capacity and facilities, including “Food Hubs.” Overall, agricultural infrastructure:

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22 feasibility study for the development of the ag x innovation center in escondido, california • I mproves the efficiency and sustainability of the local food system
•
I
ncreases access to healthy foods in underserved communities •
S
upports the viability of agriculture
•
C
reates new jobs and economic opportunities
•
H
elps preserve valuable farmlands
The food hub movement is growing rapidly across the nation as a strategy to support and strengthen local and regional food systems.

While the term “food hub” has a diversity of meanings, a common current usage describes an enterprise that provides aggregation, distribution, and marketing services and sometimes processing services to small and medium regional growers. It connects growers to larger markets they could not otherwise serve, and provides a source of fresh, sustainably grown locally produced food for regional institutional, wholesale and retail customers at a scale required to meet their needs.

Agriculture has deep roots in San Diego County and the City of Escondido. The region has existing aggregation, processing, and distribution capacity, mostly focused upon the primary agricultural products such as nursery crops, avocados, and citrus. Although unevenly distributed, the San Diego region also has direct market assets including farmers’ markets, Community Supported Agriculture (CSA subscription food box programs), farm stands, and agritourism.

It is also home to growers who have pioneered more efficient conventional, organic, and sustainable practices on space-limited sites across the County.

This analysis focuses primarily on food hubs and their expanding networks as an integral element in the region’s local market infrastructure, which includes assessing the potential for food banks to support food hub operations and opportunities to increase access to fresh produce in underserved communities and to better serve the needs of institutional buyers and consumers. A key focus is to provide market channels and support for small to medium-sized growers – including new farmers, economically disadvantaged farmers, BIPOC farmers, and veterans entering agriculture among others – but the food hub can be a market resource for growers of any scale. Participation of larger growers, especially in the initial phase of the food hub, could help provide the product volumes necessary to achieve economies of scale that would in turn create the capacity to serve larger customers with cost-competitive pricing and reliability of supply, and establish a solid market base.

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23 feasibility study for the development of the ag x innovation center in escondido, california In the long-term, a financially sustainable business will be the best way to provide market opportunities for small and medium-sized growers, working with a wide range of partners to address additional community and social benefit goals. A core aspect of the approach is to leverage existing resources within the region, including existing food hubs, and the food banks which are leaders in the local food system movement and have transportation, logistics and other capacity to help incubate a regional food hub network. Other options include partnerships with existing fresh produce distribution companies and wholesalers which have a strong presence in the region, to provide them with a new market channel for locally sourced and identified produce and value-added products.

1. L
ocal Partnership with Foodshed Cooperative
I
n order to quickly develop a successful food hub at the Ag X Innovation Center, we propose to establish a working
partnership with Foodshed Cooperative. Foodshed works
directly with farmers, eaters, and entrepreneurs to cultivate an equitable food system in San Diego while addressing the challenges posed by the climate crisis. Founded in March 2020, Foodshed increases access to healthy food, addresses food insecurity in low-income communities, and empowers small farms to produce quality harvests. To bring healthy, nutritious, and affordable produce to local families, Foodshed connects its network of small and urban regenerative farms directly to communities that need it most.
15 Fo odshed sustains communities by meeting people where they are and works tirelessly to build and sustain healthy families.

Foodshed connects local farmers with local communities to provide families with clear pathways to healthy, nutritious, and affordable fruits and vegetables. The impact on the local economy could be huge: if San Diegans spent only 5% of their food budget on locally grown products, the region could sustain approximately 6,000 small farms. These purchases would, in turn, have an additional $2.7 billion economic multiplier effect to recirculate in local communities.
16 15 ht tps://www.foodshedcooperative.com/about-us
16 Ibid.

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24 feasibility study for the development of the ag x innovation center in escondido, california Fo odshed is working directly with farmers to build thriving farms that produce quality food that is good for the people and the environment, by developing a mutual aid support network to empower local BIPOC, new, and seasoned farmers to farm regeneratively. Foodshed is cultivating economic viability by cooperating with farmers and creating a multi-faceted support network that is committed to fighting climate change, using the concept of carbon farming and regenerative agriculture practices to restore and rehabilitate the approach to food and farming systems. This approach could allow farms to offset 100% their greenhouse gas emission.
17 C urrently, Foodshed aggregates the freshest, most ethically produced products you can find from farmers whose practices include regenerative, organic, pasture-raised, and climate- smart production. They serve customers who are committed to investing in these farmers through Community Supported Agriculture (CSA) subscriptions.

Foodshed Cooperative can be the leader and assist in the initial development of food hub services for the Ag X Innovation Center. As the food hub facilities mature and the volume of available locally grown food increases, additional services and markets can be developed as outlined in the following table:
17 https://www.foodshedcooperative.com/about-us
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25 feasibility study for the development of the ag x innovation center in escondido, california Source: The Role of Food Hubs in Local Food Marketing, The USDA Regional Food Hub Resource Guide, and Sacramento Region Food Hub Feasibility Analysis – Sacramento Valley Food Hub Business Plan, August 2014.

As an initial phase of development for a regional food hub, we recommend the conversion of a portion of the existing 455 N.

Quince Street site building into useable space for the operation of aggregation and distribution facilities. The proposed food hub will be designed to undergo several phases of operations, from basic aggregation, packing, packaging and distribution activities during the start-up and early expansion phases, to gradually put in place increased value-added activities such as light processing that will position the hub to develop a viable regional market niche for fresh produce.

There are five primary functions that will be targeted for the proposed food hub facility model at full build out. It will be important to select products for this venture that can be marketed either fresh or frozen,

POSSIBLE RECOMMENDED FOOD HUB SERVICES/ACTIVITIES
Operation Services Producer Services Community/
Environmental Services
Pre-cooling, sorting,
grading, culling, washing,
cooling
Actively linking producers
and buyers, contracting for
product
Increasing community awareness
of “buy local” benefits
Producer aggregation On-farm pick-up, crate
system, delivery
Distributing to nearby “food
deserts”
Packaging and
re-packaging
Production and post-
harvest handling training
Food bank donations
Light processing (trimming,
cutting, freezing, drying)
Management services,
business, and crop planning
Youth and community
employment opportunities
Brokering Value-added product
development
Recycling and composting
programs and renewable energies
Branding and market
promotion
Food safety and Good
Agricultural Practices
(GAP) training and
certification
Contact with growers &
distributors with existing
receiving & cleaning stations as
mini-aggregation sites
Cold and dry storage,
extending seasonality
Liability insurance Partnering with food banks on
logistics and transportation
Distribution Facilitating access to capital Education on policy barriers, including local procurement
issues
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26 feasibility study for the development of the ag x innovation center in escondido, california to provide flexibility for changing market conditions, and to extend seasonality and shelf life. The anticipated primary functions are as follows:
•
R
eceiving and aggregating the produce
•
P
re-cooling
•
P
ackaging, packing, and/or adding value such as through
peeling or cutting
•
Pr
ocessing
•
S
toring and shipping
As discussed below in Sections V and VI, the cost estimates for the creation and operation of the food hub will be based upon the development of the existing building to include refrigeration/cold storage, production equipment, produce handling/storage, fire protection, auxiliary systems and equipment, mobilization, engineering and management, and any additional contingency.

B. I ncubator Space for AgTech
Companies
Company incubation facilities, also known as business incubators, are specialized programs designed to support the development and growth of startup companies. Agricultural technology incubation facilities, also known as AgriTech incubators, are specifically designed to support the development and growth of startups in the agricultural sector. These facilities provide a range of resources and services to help new businesses overcome challenges and succeed in the AgriTech industry. Below is a list of attributes commonly associated with AgriTech incubators:
•
Ph
ysical Space: Incubators offer office space, meeting rooms, and sometimes laboratory and field facilities.
•
Sh
ared Services: Access to shared services such as internet, phone lines, and administrative support.
•
M
entorship and Training: Guidance from experienced mentors and training programs to help entrepreneurs develop their business skills, particularly in agricultural technology. •
A
ccess to Funding: Assistance in securing funding through investor connections, grants, and other financial resources.

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27 feasibility study for the development of the ag x innovation center in escondido, california • B usiness Development: Nurturing and accelerating the growth of new businesses by providing essential resources and support tailored to the agricultural technology sector.
•
C
ost Savings: Reducing the initial costs for startups by offering shared services and facilities at lower rates.
•
S
kill Enhancement: Providing training and mentorship that helps entrepreneurs develop the skills needed to run a successful AgriTech business.
•
N
etworking: Creating opportunities for startups to connect with investors, partners, and other key stakeholders in the agricultural industry.
•
E
conomic Growth: Contributing to the local and national economy by creating jobs and fostering innovation in agriculture.

1. B
usiness Incubator Space/Convening Space
The AgriTech business incubator space will provide office, conference, and other amenities that a startup company needs to be housed within the facility. The design of this space will allow for both private and communal areas. Private office spaces will give incubator tenants the privacy needed for their business operations. Communal spaces will enable the sharing of common equipment (copiers, printers, etc.) and other office amenities, relieving tenant startups from investing in capital business equipment costs that they might not need initially.

Additionally, the communal space will encourage an open, collegial, and collaborative working environment. Conference rooms associated with the business incubator spaces will vary in size to accommodate intimate and larger group gatherings as needed for the AgriTech incubator tenants. State-of-the-art technology will be incorporated into the facility to help enable the success of the incubator tenants (e.g., video conferencing, high-speed internet and intranet, cloud computing, AI R&D, etc.).

2. Wet Laboratory
A BSL2 level wet laboratory on-site will allow for a versatile setup to meet the research and development needs of most tenants. A BSL2 wet laboratory will enable the study of most items that may be of interest to an AgriTech startup while providing a safe environment for laboratory personnel to Attachment "1"
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28 feasibility study for the development of the ag x innovation center in escondido, california perform their experiments. Adding a chemical hood to the laboratory would allow tenants to perform proper chemical handling/experiments in the hood. The general setup of a wet laboratory should include benchtop space with chemical- resistant countertops (e.g., slate or epoxy, typically six benches per lab), sinks, chemistry hoods, cabinetry, lighting, plumbing, gas lines (natural gas, nitrogen, air, etc.), vacuum lines, electrical (110V and 220V), and emergency backup power hookups, both tap H
2O and di-H2O lines to the sinks, etc. In addition to these, a wet laboratory should also include space for computers, at least one biological safety cabinet, refrigerator(s), freezer(s), and incubator spaces.

A lab of this type could service most tenants of the incubator facility (including AgriTech and Consumer-Packaged Goods labs and Test Kitchens, as needed).

3. I
nitial AgTech Stakeholder/Company - AZENTIVE
As described previously, an AgTech startup incubator can support early-stage agricultural technology companies
by offering funding, training, mentorship, networking
opportunities, and resources for day-to-day operations. These resources help startups grow by providing financial assistance, educational programs to develop business and technical
skills, guidance from experienced entrepreneurs and industry experts, and connections with potential investors, partners, and customers. This comprehensive support system enables “agripreneurs” to build their businesses from the ground up and advance to the next stage of development.

An example of an interested AgTech business within the
greater Escondido, CA area that has expressed a desire to locate to the proposed AgTech incubator facility is AZENTIVE

18. AZENTIVE is a “wellness, regenerative systems, and emerging technology company.” They focus on creating positive social, environmental, health, and community impacts through
“Biomimicry Science solutions.” Their initiatives aim to produce nutrient-dense foods and plant-based medicines by mimicking natural processes.
18 https://www.azentive.com/
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29 feasibility study for the development of the ag x innovation center in escondido, california AZENTIVE’s flagship technology is based on replicating the full spectrum of sunlight to allow plants to grow indoors as if under natural sunlight. Their “Sun On-Demand™ (aRadiant Sun™)” technology supports both indoor and outdoor plant cultivation.

AZENTIVE emphasizes the importance of local, regenerative farming and collaborates with small farmers to promote healthy heirloom and legacy genetics. This technology supports the regenerative cultivation of plants, promoting healthier growth, stronger immune systems, and higher compound-density in plants. It is particularly beneficial for growing plant-based medicines and nutrient-dense foods, as it helps plants achieve full genetic expression.

AZENTIVE emphasizes that they are not just a lighting company, but a wellness and sustainability company focused on creating symbiotic systems that benefit plants, people, and the planet.

A review of AZENTIVE’s plans indicates a vision for an “impactive, integrative, regenerative circular economy” with wellness, education, and circular regeneration as the core guiding principles. Within their vision are anticipated five foundational core facilities focusing on:
i.

S
unlighting and soil facility
ii. N
ursery facility for trees, seeds, pollen, and exotic and medicinal plants
iii. A c
ommercial kitchen, café, and apothecary for their produce iv. E
-waste metal recovery facility
v. E
ducation and innovation sandbox facility
As a foundational tenet of the Ag X Innovation Center,
AZENTIVE could utilize multiple aspects of the proposed facility, including the AgTech incubator, wet lab, CPG and test kitchen, and food hub, while also branding their products as “Grown in San Diego Brand.”
Additional phased development of the Ag X Innovation Center could see expanded growth into available space in the current back parking area. For instance, this space could be developed to include growth facilities for controlled environmental agriculture (CEA) and other greenhouse facilities, revolutionizing growth, and innovation to foster entrepreneurship in the regional AgTech industry, with AZENTIVE taking an early lead in this development.

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30 feasibility study for the development of the ag x innovation center in escondido, california C. C onsumer-Packaged Goods
Food and Beverage Lab and Test
Kitchen
Consumer-Packaged Goods (CPG) are items used daily by average consumers that need to be replaced or replenished regularly. These include goods such as food, beverages, clothes, and healthcare and beauty products. In a world transformed by the post-pandemic era, consumer interests reflect a shift toward healthier more natural ingredients in everyday products and a rising demand for sustainable options. This global trend signals a pressing need for change, urging CPG companies to adapt quickly. To stay competitive, CPG companies need to consistently deliver meaningful pioneering and innovative products faster than ever before. To highlight the importance of the CPG market, the following facts are most informative
19:
•
T
he global CPG industry is predicted to add $3.18 trillion in value in 2024.
•
I
n the United States, that amounts to $821 billion in value added.
•
T
he industry value is projected to reach $18.94 trillion by 2031. •
6 7 of the top 100 CPG companies are in the food and beverage industry.
•
C
ompared to 2021, the average American household makes
10+ mores trips to buy food and beverages.
•
A
pproximately $1.4 trillion is spent on food each month.

San Diego County and the City of Escondido stand poised to deliver a new array of food and beverage products suited for today’s demanding consumers, especially with the creation of innovative CPG products targeted to local and regional markets produced from local and regional agricultural crops. San Diego County already has a built-in economy and consumer base with a population of nearly

3.3 million people.
20 The City of Escondido has a population of just
over 150,000, the third largest city within the County.21 Furthermore, San Diego County’s population is increasingly diverse with 34% Hispanic/Latino, 12.5% Asian, 4.7% Black/African American, and 19 ht tps://explodingtopics.com/blog/cpg-industry
20 https://dof.ca.gov/forecasting/demographics/estimates-e1/ 21 Ibid.

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31 feasibility study for the development of the ag x innovation center in escondido, california

15.8% two or more races. 22 The population base and its diversity are ripe markets for creative and innovative CPG food and beverage products grown and produced in San Diego. However, in order for locally produced CPG items to flourish, a locally and regionally focused innovative laboratory for new food products and packaging needs to be established as an important foundation of the Escondido Ag X Innovation Center.

1. C
ollaborative Relationship with Naturally San Diego
As part of our stakeholder outreach within the region
and local community, we solicited the input of Naturally San Diego, an organization established to bring together entrepreneurs, investors, brands, retailers, and industry experts for the purpose of making San Diego the best place to launch and scale a natural products company.
23 Kierstin
Rielly, Executive Director of Naturally San Diego informed us that their focus is not primarily on agricultural products, food, or beverages, but many of the consumer health and beauty brands that they work with do have connections to the regional agricultural community.

More specifically, Naturally San Diego surveyed its
membership regarding the needs of food and beverage CPG companies and emerging start-up firms and their responses were informative for the creation of a CPG Lab and Test Kitchen space as follows:
•
N
eed for FDA approved clean space for production
•
N
eed for packaging line for snacks or beverage powders
•
N
eed for commercial kitchen facilities for bottling or canning of ready-to-drink beverages
•
N
eed for commercial kitchen facilities for snacks or other food products
•
N
eed for dehydrators, dehumidifiers, or other drying
equipment
22 ht tps://www.census.gov/library/stories/state-by-state/california-population-change- between-census-decade.html#:~:text=See%20how%20California’s%20population%20 and%20housing%20changed%20from
23 ht tps://naturallysandiego.org/
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32 feasibility study for the development of the ag x innovation center in escondido, california • N eed for batch laboratory for prototyping or quick turnaround samples and the ability to create comparable products
•
N
eed for representative manufacturing and packaging
equipment, especially for natural products, including high shear mixers and hot filling capabilities for balms, creams, and high viscosity products
•
N
eed for affordable clinical trials/claims testing/research with the ability to expand to focus groups and market research •
N
eed for small studio photo space to showcase new products •
N
eed for separate commercial kitchen space for individualized operation and activity
As a result of this instructive feedback, we recommend that the CPG Lab and Test Kitchen be designed to accommodate multiple client companies at the same time. The lab should also include various storage rooms including ambient storage for at least two levels of humidity and refrigerated storage for both low and medium temperatures. The lab will be divided into two areas, first being a “gray” area where raw materials and supplies are received and handled, and the second being a “clean” area (not to be confused with clean rooms for biopharmaceutical industry), where in process and finished products are being handled/ produced in a sanitary environment. To facilitate the physical separation of the two areas, not only will a dividing wall be required, but also consideration will need to be given to maintaining positive air balance in the “clean” room and slightly negative air balance in the “gray” room.

For personnel access to the “clean” room, a special entrance (anteroom) is strongly encouraged. The anteroom shall have positive air pressure, but less than that of the clean room and shall be equipped with a handwash sink with a no touch faucet and a no-touch hand air dryer; a shoe sanitizer mat; accommodation for the donning of smocks, hair, and beard nets, etc. (important to guard against cross contamination). Once in the “clean” side of the lab, it is important that each client company has a dedicated sink and counter so that these functions do not have to be shared. The lab should also include the following shared equipment:
•

Blanching equipment
•

Grinders, choppers
•

Fermenters
•

Product pumps
•

Decanter
•
U
ltrafiltration system
•
C
ooking operations such as a couple of Rational-type ovens, a heated tunnel cooker and various kettles
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33 feasibility study for the development of the ag x innovation center in escondido, california • T unnel for drying
•
V
arious means for the use of refrigerant including a CO 2 crust freezer, a nitrogen freezing tunnel, an individually quick frozen (IQF) tunnel, and a cooling tunnel
•
C
onveyors for separating raw material by size, color and by quality
•
C
ontainer fillers and closures
•
S
licers, dicers, and peelers
•
P
ouch fillers and sealers (most likely using preformed flexible pouches)
•
N
itrogen flushing of packages
•
C
old box (refrigerated built-in storage) and/or commercial refrigerators and freezers for in-process or finished product storage
Additionally, within the total area of the CPG Lab and Test Kitchen, we further recommend that three separate commercial kitchens (approximately 1,000 sq. ft. each) be created to allow multiple client companies to work independently to maintain proprietary activity and prevent cross-contamination of product.

D. A gritourism Coordinating Center
Agriculture in San Diego County has exceptional diversity that provides economic stability within agriculture and to the broader county economy. Nursery and greenhouse production have generated the majority of agricultural sales since the 1990s. San Diego County is also the top avocado and fresh tomato producer in the country, and has 545 organic farms, the most of any county.
24 As noted above, the primary commodities grown in San Diego, including avocados, vegetables, and citrus, are losing acreage annually as international imports of the same commodities continue to saturate the market. Additional threats to farming in San Diego County includes the high cost of inputs (primarily water) and the shrinking margins of specialty crops grown in the region.
24 ht tps://www.nass.usda.gov/Publications/AgCensus/2022/Full_Report/ Volume_1,_Chapter_1_State_Level/California/st06_1_001_001.pdf Attachment "1"
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34 feasibility study for the development of the ag x innovation center in escondido, california Due to farming threats discussed above, growers in San Diego County need additional revenue streams to keep up with the rising costs of their inputs. A collective Agritourism strategy for San Diego County growers could capitalize on the significant tourism in the region and provide added income and revenues.

Allowance of Agritourism relies strongly on land use, which is determined locally by City Councils (for jurisdictions within city limits) and Boards of Supervisors (for non-incorporated areas). 25 The majority
of farms in San Diego County are located within unincorporated areas. San Diego has a large number of farms less than 5 acres, which are largely situated in rural to semi-rural regions that provide larger plots of land and appropriate zoning necessary for agriculture.

The County of San Diego has incentivized Agritourism uses through its land use planning. For example, on March 28, 2012, the County Board of Supervisors approved an amendment to the County’s Zoning Ordinance to establish Agricultural Tourism as an accessory use to Commercial Agriculture uses.
26 This Zoning Ordinance update
initiated the Agricultural Promotion Program, which supports and promotes agricultural tourism. On March 15, 2017, the County Board of Supervisors amended the Zoning Ordinance language pertaining to the Agriculture Promotion Program which adds and clarifies agricultural use definitions; supplements agricultural opportunities to include new agri-tourism accessory uses including wineries and animal uses. Uses that are regulated by these Zoning Ordinance amendments include creameries, microbreweries, micro-distilleries, and agricultural stores. 27 Since the implementation of the Agricultural Promotion Program in 2012, more than 100 companies in the County now participate in some form of Agritourism. A 1999 study estimated that over 200,000 people annually visit the Carlsbad Flower Fields, and those numbers may have risen significantly since then. Tourism is the third-largest economic driver in San Diego – generating $23.4 billion in regional economic impact in FY 2023, contributing to more than $1 billion in transient occupancy taxes, sales taxes and property taxes to government entities, and supporting more than 200,000 tourism-related jobs in the County.
28 As a result,
great opportunities exist to expand agricultural tourism in the region. 25 ht tps://sarep.ucdavis.edu/sites/g/files/dgvnsk5751/files/inline-files/byrne-tourism_0.pdf 26 ht tps://www.sandiegocounty.gov/content/dam/sdc/pds/zoning/formfields/PDS-PLN-207. pdf
27 ht tps://www.sandiegocounty.gov/pds/advance/agriculturepromotion.html 28 ht tps://sdtmd.org/case-study-san-diego-tourism-authority/#:~:text=Tourism%20is%20 the%20third-largest%20economic%20driver%20in%20San,more%20than%20 200%2C000%20tourism-related%20jobs%20in%20the%20County
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35 feasibility study for the development of the ag x innovation center in escondido, california The University of California Agriculture and Natural Resources (UC ANR), in partnership with the UC Cooperative Extension, has put in significant effort and resources into developing agritourism in the San Diego region.
29 For instance, UC ANR has developed the
Getting Started in California Agritourism program, which helps potential agritourism enterprises get started. More specifically, it provides resources, access to potential regulations and requirements, networking opportunities, assistance with developing a business and marketing plan.
30,31 Marketing resources and workshops on agritourism are also available to farmers and ranchers through UC ANR.32

1. C reation of Digital Interactive Application
The agritourism strategy for San Diego County would include the development of a digital app, featuring information about each agritourism location, along with marketing efforts in airports and on digital platforms such as Uber. There will need to be an innovative assessment model created for program sustainability. As a part of this project, there will be an opportunity to receive funding to update and make the UCANR interactive map more user-friendly. We propose to contract out the development and support of an interactive San Diego Agritourism digital application with a local software firm.

2. D
evelop Agritourism Technical Assistance Center
Technical assistance for growers wanting to adopt an
Agritourism strategy for their business is critical. As discussed above, UC ANR provides a variety of resources assisting farmers and growers with agritourism ventures at the state level as well as county specific. The San Diego UCANR Team received a grant to provide networking opportunities for those interested in agritourism activities and those currently in operation. The grant also supports technical assistance and connection to UCANR statewide resources. The funding runs 29 ht tps://ucanr.edu/sites/OAR/Resource_Directory/Marketing_285/ AgriTourism_-_Direct_Marketing/
30 ht tps://ucanr.edu/sites/agritourism/files/384252.pdf 31 ht tps://ucanr.edu/sites/agritourism/
32 ht tps://ucanr.edu/sites/agritourism/Teaching/
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36 feasibility study for the development of the ag x innovation center in escondido, california out in the first quarter of 2025 and an additional investment will be required to continue creating the ecosystem. People will need help navigating the regulation related to zoning and permitting. Access to grant funding and assistance with submission would be helpful especially during the permitting process. Insurance, standard liability specifically, is a factor as well and folks can use help there. There is an opportunity to invest in capacity building at the UCANR San Diego Office and/or staffing at the Ag X Innovation Center.

3. F
ocus on Agritourism Highlighting San Diego County
Viticulture
Although there are 115 wineries in the San Diego area,
the region is not well known for its wine production.
33 In
2023, San Diego County wineries generated $54.5 million in gross sales, an 11% increase over 2022 sales ($49.1 million), reaching a new all-time record. For a second year in a row, newer and expanding wineries led job growth in the sector, which rose to an estimated 802 jobs in 2023, a 13% increase over 2022 totals of 709.5.
34 There is an opportunity to expand
the viticulture industry in San Diego County with a collective county-wide wine ordinance that allows for more agritourism opportunities.

Based on discussions with Kim Murray of Beach House Winery, there is currently a lack of technical assistance and knowledge available to wine grape growers in the region. In addition, as part of the winery ordinance in San Diego, there is a maximum capacity of 12-14 persons in a vehicle to visit county wineries and they cannot have amplified noise (music, etc.).

The proposed agritourism strategy outlined above will also promote agritourism in the winery space. Although resources in the region allocated to viticulture are limited, the San Diego Viticulture and Enology Technician Apprenticeship Program (VETAP)
35 offers a two-year program for aspiring individuals
seeking careers in viticulture and enology, which includes a 33 ht tps://sandiegowineries.org/sd-wine-country/sdcva-story 34 ht tps://sandiegowineries.org/wp-content/uploads/2024/05/SDCVA_ Economic-Impact-of-SD-Wineries-Report-2024_FINAL-2.pdf
35 ht tps://www.sdvtap.org/
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37 feasibility study for the development of the ag x innovation center in escondido, california registered apprenticeship with both paid on-the-job training and supplemental coursework. This program provides
opportunities to expand on the viticulture workforce in the San Diego region and could be collocated within the Ag X Innovation Center in Escondido.

E. “Grown in San Diego” Brand
Re-emphasis
In the past, the San Diego Farm Bureau has initiated a “Grown in San Diego” brand to market to consumers products grown in the San Diego region. As a part of this strategy, growers participating in this platform were allowed to use the “Grown in San Diego” brand that the San Diego Farm Bureau has rights to promote and identify products grown in the San Diego region. The brand must be updated and revitalized to become something of value in the eyes of the consumer.

The strategy proposed under this plan will expand on San Diego Farm Bureau’s “Grown in San Diego” brand by providing the necessary marketing support with sustainable financial investment. This also emphasizes an important component of the City of Escondido CEDS, Fundamental 4 – Intentional Placemaking and Marketing. By re- emphasizing the “Grown in San Diego” brand it will not only allow San Diego but the Escondido growers the opportunity to tell their own story, highlighting the area’s key strengths and distinctive qualities, including superior amenities and comfortable quality of life along with unique growing environments and outstanding products.

The “Grown in San Diego” brand ties all the programs proposed for the Ag X Innovation Center together – it allows the marketing of food hub agricultural commodities and CPG products to be labeled and identified as uniquely “Grown in San Diego,” and it will also highlight the virtues of San Diego Agritourism sites and attractions. Additionally, it will afford all programs the ability to support one another financially through the sharing of personnel and potential revenue sources for long-term sustainability and viability.

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38 feasibility study for the development of the ag x innovation center in escondido, california Moreover, the “Grown in San Diego” program should work closely with the state’s California Grown Program and strive to execute a variety of marketing programs including retail, foodservice, and national promotions, owned and paid digital advertising, public relations campaigns and San Diego-focused agritours and special events highlighting the Escondido Ag X Innovation Center.

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PROPOSED DESIGN

ALTERNATIVES AND

TECHNICAL NEEDS OF

AN ESCONDIDO AG X

INNOVATION CENTER

AND INCUBATOR AT
455 N. QUINCE STREET
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40 feasibility study for the development of the ag x innovation center in escondido, california Figure 2: Proposed lay-out of Programmatic Areas of the Escondido Ag X Innovation Center at 455 N. Quince Street.

Based upon the discussion throughout Section IV above of the proposed programs to be included in the Escondido Ag X Innovation Center, Figure 2 highlights the break-out of each of the recommended areas of innovative agricultural opportunities. We have attempted to maximize the existing building footprint with conversion to useable programmatic space. We have also anticipated the need for future growth by identifying space for potential sequential expansion.

1. R
egional Food Hub (15,400 sq. ft.)
The regional food hub as previously described will act as a centrally located facility that actively manages the aggregation, distribution, and marketing of Grown in San Diego Brand agricultural products. Serving as a crucial link between small and medium-sized farmers and larger markets, such as grocery stores, restaurants, schools, and hospitals, helping farmers focus more on farming by handling the logistics of getting their products to market. In addition, food hubs also provide education Attachment "1"
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41 feasibility study for the development of the ag x innovation center in escondido, california and training on sustainable production, food safety, and other relevant topics, technical assistance in areas like certification, branding, and post-harvest handling, and community
engagement through educational programs, health-awareness campaigns, and donations to local communities. Typically, a food hub includes a variety of equipment to support its operations, such as commercial kitchens for food processing and preparation, food processing equipment for tasks like washing, cutting, and packaging produce, cold storage for perishable items, dry storage for non-perishable items, packaging and labeling equipment for preparing products for sale, and transportation vehicles for distributing products to buyers. The proposed 15,400 sq. ft. size will provide the ability to perform these functions.

2. A
gTech Business Incubator (12,000 sq. ft.)
The AgTech business incubator space will function as a socio- technological connector to create a networking bridge and marketing systems that will accelerate industry and society toward solutions for food and health resilience. Specifically focused entrepreneur services and support, joint research and development across industry, government and academia, educational sessions, such as micro-credentialing for
agriculture or biotechnology, networking events, and hosting visiting interested parties globally will create a culture that will be a dynamic platform for inspiration and change. Displaying the innovation by inviting the public, lawmakers and other industry and community stakeholders in to view the work that is being done will create a framework for understanding the work at the center, paving the way for critical partnerships and access to capital providers. In addition to the AgTech Business Incubator a sub portion will house an BSL2 Wet Lab to aid in the developing of new products and devices that will be complementary to the other components that will make up the Ag X Innovation Center. The general lack of availability of labs that offer flexibility in ag-food-bio product development for start-up businesses or those looking to expand is often an insurmountable hurdle. Having essential elements such as a basic wet lab connected within the facility is an important model of efficacy and is advantageous for tenets of the incubator space. The Ag X BSL2 Wet Lab should not require more than ~2,000 sq. ft. leaving ~10,000 sq. ft. for the rest of the AgTech Business Incubator space to perform its purposes.

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42 feasibility study for the development of the ag x innovation center in escondido, california

3. C PG & Test Kitchen (8,500 sq. ft.)
The CPG and Test Kitchen will include everyday items like food, beverages, clothes, and healthcare products that need regular replenishment. Post-pandemic, there is a shift towards healthier, natural ingredients and sustainable options, urging CPG companies to innovate quickly. San Diego County and Escondido aim to create innovative CPG products from local crops, leveraging their diverse population.

To support this, a proposed CPG Lab and Test Kitchen in Escondido will include FDA-approved clean spaces, commercial kitchen facilities, and various specialized equipment. The lab will feature areas for raw material handling and sanitary production, with positive and negative air balance systems to prevent contamination. Shared equipment will include blanching equipment, grinders, fermenters, product pumps, ultrafiltration systems, ovens, drying tunnels, freezing tunnels, conveyors, container fillers, slicers, and nitrogen flushing systems. Additionally, three separate commercial kitchens will allow multiple client companies to work independently, maintaining proprietary activity and preventing cross-
contamination. These specific lab and processing areas will be important for demonstration and to translate ideas into real products for education and to attract critical investment. The 8,500 sq. ft. allocated will provide space for both the CPG and Test Kitchen with subspace divided into three individual 1,000 sq. ft. test kitchens, leaving ~5,500 sq. ft. for the CPG and remainder Test Kitchen needs.

4. A
gritourism (2,050 sq. ft.)
The Agritourism office will be a regional hub connecting visitors with agricultural experiences and activities in the greater Escondido, California area. The office should highlight local agricultural heritage with decor that includes farm tools, local produce, and informational displays about the area’s farming history.

Services provided by the Agritourism office should include organizing and scheduling farm tours, vineyard visits, and other agricultural experiences. They can offer workshops, classes, and demonstrations on topics such as sustainable farming, Attachment "1"
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43 feasibility study for the development of the ag x innovation center in escondido, california organic gardening, and animal husbandry. The office will host events like harvest festivals, farm-to-table dinners, and seasonal celebrations. They will provide maps, brochures, and guides about local attractions, accommodations, and dining options.

The office will sell local produce, handmade crafts, and other farm-related products. They will arrange hands-on activities like fruit picking, cheese making, and planting workshops based on local Escondido Agriculture heritage.

The office will coordinate transportation for visitors to and from various regional agritourism sites. They will assist with reservations for farm stays, bed and breakfasts, and other rural accommodations. The office will partner with local schools, businesses, and organizations to promote agricultural education and community involvement.

Agritourism offices play a crucial role in promoting local agriculture, educating the public, and providing unique, memorable experiences for visitors. The site should be well served by the proposed 2,050 sq. ft. which will function synergistically with the “Grown in San Diego” brand housed in the same front section of the facility.

5. G
rown in San Diego Brand (2,050 sq. ft.)
The “Grown in San Diego” brand section of the facility will aim to market and label local products as “Grown in San Diego” which will serve to help San Diego and Escondido growers showcase their strengths and unique qualities of their farms and produce. The brand will unify programs at the Ag X Innovation Center, promoting agricultural commodities, CPG products, and Agritourism. It will also support financial sustainability through shared resources. The program will collaborate with California Grown to execute various marketing initiatives, including retail, foodservice, digital advertising, public relations, and Agritourism. The 2,050 sq. ft. office housing this initiative will feature collaborative workspaces, meeting rooms, and state-of-the-art technology to support marketing efforts and foster innovation with the Agritourism section as well as the rest of the Ag X Innovation Center.

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44 feasibility study for the development of the ag x innovation center in escondido, california VI.

FINANCIAL PROFORMA

AND PHASED

BUSINESS PLAN &

POTENTIAL FUNDING

SOURCES
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45 feasibility study for the development of the ag x innovation center in escondido, california The financial proforma initially describes a scenario under full buildout and operation of the AgX Innovation Center. The proforma assumes a scenario in which there is a single operator for the Innovation Center (“Operator”), and the various elements of the center are considered tenants. As the owner of the building, the City of Escondido could be the Operator, but for purposes of this analysis we assume the Operator is an independent organization and that the City would receive lease revenues as landlord of the building. As further planning occurs for the Innovation Center, other organizational models may prove more appropriate, and the analysis can be adjusted as needed.

We estimate that the Center would cost about $7.5 million to build and furnish, and about $2 million per year to operate (2024$). Table 3 details the operational costs and potential revenues to achieve breakeven operations (including a long-term capital recovery fund).

The discussion below describes the methodology for the cost and revenue estimates, which draws in part from experience of the consulting team in designing other food hubs and innovation centers in the Sacramento region.

A. C ost Items
Building Lease Rates. The lease rates per sq. ft. shown as cost items in Table 3 represent what the Operator would pay to the City for use of the building. We obtained asking rent data for 48 office and industrial spaces in Escondido through LoopNet. Office rents are fairly consistent at about $21.00 per sq. ft., with a few properties ranging from $11.88 to $33.60. Industrial space averages $17.61 for spaces less than 10,000 sq. ft. and 14.46 for spaces 10,000 sq. ft. and larger.

For this analysis we have used a base rate of $15.00 per sq. ft. for the food hub and incubator space.

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46 feasibility study for the development of the ag x innovation center in escondido, california TABLE 3: ANNUAL OPERATIONAL COST/REVENUE ESTIMATES AT FULL OPERATION Escondido AgX Quantity Units Value Annual Total
Cost Items $2,026,500
Building Shell/Land lease 44,500 sq. ft.

Food Hub Space 15,400 sq. ft. $3.75 annual rent $57, 800 Incubator Space 12,000 sq. ft. $3.75 annual rent $45,000 Consumer Packaging Lab 8,500 sq. ft. $4.50 annual rent $38,300 Ag-Tourism Offices 2,050 sq. ft. $5.25 annual rent $10,800 Grown in San Diego Brand 2,050 sq. ft. $5.25 annual rent $10,800 Communal Space 4,500 sq. ft. $4.50 annual rent $20,300
Utilities
Electricity 1,050,330 kWh See Table 2 $506,800
Gas 25,007 therms $0.87 $/therm $21,800
Internet/Communications 44,500 sq. ft. $1.50 per sq. ft. annual $66,800 Water 1,664 000’s gal. $9.82 per 1,000 gal./month $16,400 Wastewater 1,331 000’s gal. $13.23 per 1,000 gal./month $17,600 Solid Waste 1 acct. $317. 90 Monthly service $3,800
Staff
Director 1 $100,000.00 Salary $100,000
Program Staff 7 $65,000.00 Salary $468,000
Food Hub Workers 22 $30.00 Hourly wage $165,000
Programmer 1 $50,000.00 Contract App Cost $50,000
Insurance $0.02 per $ revenue $40,500
Professional Services $0.02 per $ revenue $40,500
Maintenance/Custodial $1.00 per sq. ft. $44,500
Capital Recovery Fund $7,546,000 Capital Cost 25-year replacement $301,800 Revenue Items $2,027,200
Food Hub Space Rental 15,400 sq. ft. $15.00 $/sq. ft./yr $231,000 Incubator Rentals 10,000 sq. ft. $14.00 $/sq. ft./yr $140,000 Wet Lab Rental 2,000 sq. ft. $15.00 $/sq. ft./yr $30,000 CPG Lab Rentals 5,500 sq. ft. $15.00 $/sq. ft./yr $82,500 Test Kitchens Rentals 3,000 sq. ft. $15.00 $/sq. ft./yr $45,000 Food Hub Sales Less COGs $7,664,800 sales $0.15 Gross Profit Ratio $918,700 Ag-Tourism Farm Subscriptions 150 $200.00 Annual subscription $30,000 SD Brand Subscriptions 1,000 $100.00 Annual subscription $100,000 Corporate Sponsorships $400,000
Program Grants $50,000
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47 feasibility study for the development of the ag x innovation center in escondido, california The analysis assumes the City would accept a rate at 25% of market value (NNN) in order to create a subsidy for the program elements in the Innovation Center. This results in rates of $3.75 per sq. ft. for the food hub and incubator and $5.25 for the office space. The CPG Lab and Communal Area are treated as hybrid spaces at $4.50 per sq. ft. These rates would result in total lease revenues for the City of $182,800. This revenue would be unencumbered, as the Operator would pay utilities and all other operating expenses for the Center.

Utilities. The Food Hub, the CPG Lab, and Incubator space will be relatively heavy energy users, with industrial equipment, cold storage, and the test kitchens in operation. We have estimated electricity use by kilowatt hours (kWh) and natural gas use in 1000’s of BTUs (kBTU), as shown in Table 4.

TABLE 4: ESTIMATED ANNUAL ENERGY USE, ESCONDIDO AGX INNOVATION CENTER Source: California Energy Commission, 2022 California Commercial End-use Survey, Final Report, February 2024, Pg. 80.

For mid-size commercial and industrial customers, San Diego Gas & Electric (SDG&E) charges $0.44 per kWh, which would total about $462,000 per year in electricity charges for the Center. In addition, SDG&E adds basic service fees and demand charges that would add another $42,300 for a total estimated electric power bill of about $507 ,000.
36 Program Element Electricity
(kWh/sq.ft./yr)
Gas
(kBTU/sq.ft./yr)
Annual
Electricity
Annual
Gas
Food Hub Space 19.55 5.30 $301,070 $81,620
Incubator Space 25.80 23.20 $309,600 $278,400
Consumer Packaging
Lab 41.00 228.30 $348,500 $1,940,550
Ag-Tourism Offices 10.60 23.20 $21,730 $47,560
Grown in SD Brand
Offices 10.60 23.20 $21,730 $47,560
Communal Space 10.60 23.20 $47,700 $104,400
Total $1,050,330 $2,500,090
36 SDGE, Available Rates for Medium and Large Commercial C
ustomers,

Schedule

AL-TOU2-EECC.

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193
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48 feasibility study for the development of the ag x innovation center in escondido, california The estimated natural gas use for the Center, mainly for test kitchen stoves and cold storage, equates to about 15,000 therms per year.

SDG&E charges $0.87 per therm, for a total annual gas bill of $21,800 for the Center.
37 The City of Escondido provides water and wastewater services. The test kitchens and the cold storage space in the Center would likely have higher water demands than the other activities.
38 Assuming a
1” meter at the site, the monthly water service charge is $82.86 plus $9.92 per 1,000 gallons of use. Sewer rates are higher at $13.23 per 1,000 gallons. We estimate water use for the Center at 1.66 million gallons per year, of which 80% would leave the site as wastewater. The annual water bill is estimated at $16,400 and $17,600 for wastewater.

EDCO Disposal Service provides solid waste disposal in Escondido.

The minimum commercial rate is $317 per month, which includes trash and recycling dumpsters as well as organics pick-up.
39 We have used
this rate for this analysis, but further analysis is necessary to determine if the mix of organics and other waste is adequate for the Food Hub and test kitchen uses in the Center.

The Innovation Center will require a high level of broadband capacity.

Based on analysis of other similar facilities, we estimate the necessary service could cost as much as $1.50 per sq. ft. per year. 40 When the
project design is further refined, quotes can be obtained from local internet providers.

Staffing. Based on the size of the spaces allocated for various uses in the Center, we estimate staffing requirements at full operation to include a Director and 7 program staff occupying the office space, and up to 22 workers in the Food Hub. This does not include employees of the tenants of the incubator or the CPG Lab. We have also included a partial FTE for a programmer to create the Agritourism App, although we expect that function to be contracted to an off-site vendor. Total salaries for operating the Center are estimated at $783,000. 37 SDGR, Natural Gas Service For Core Non-Residential Customers, Schedule

GN-3.
38 EPA. Energy Star Property Manager, U.S. Water Use Intensity by P
roperty

Type,

Technical

Reference,

June

2023;

Alliance

for

Water
Ef
ficiency,

Commercial

Kitchen

Water

Use

Efficiency

and

Best
P
ractices

Guide.

March

2017.
39 Noemi Rivera, Lead Customer Service Representative, personal communication, October 4, 2024.
40 UCANR. The Plant @ California: Feasibility Study.

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49 feasibility study for the development of the ag x innovation center in escondido, california Other Services/Costs. Insurance, professional services (legal, accounting, etc.) and maintenance/custodial services are estimated as functions of the level of business activity (revenue) at the Center or the physical space, as shown in Table 3. These costs could add more than $126,000 per year to the Center operating budget.

Capital Recovery Fund (CRF). The operating cost analysis assumed that funds are obtained from other sources to build and equip the Center. However, it is important to allocate funds from operating revenues to pay for long-term maintenance and replacement of equipment and furnishings as they complete their useful life. Our preliminary estimate of the capital cost to build and equip the Center is about $7.5 million, as shown in Table 5.

TABLE 5: PRELIMINARY CAPITAL COST ESTIMATE FOR ESCONDIDO AGX

INNOVATION CENTER
The Capital Recovery cost shown in Table 3 reflects a 25-year useful life for the improvements estimated in Table 5. This is a static proforma analysis and escalation factors would need to be incorporated into the year-to-year budgeting process to ensure that the CRF is sufficiently funded when equipment and building systems need to be replaced.

Costs Size Units Unit Cost Total Cost
Food Hub Equipment 15,400 sq. ft. $226.00 $3,478,500
AgTech Incubator
Space 10,000 sq. ft. $115.00 $1,150,000
Incubator Wet Lab 2,000 sq. ft. $160.00 $320,000
Consumer Packaging
Goods Lab 5,500 sq. ft. $160.00 $880,000
CPG Test Kitchens 3,000 sq. ft. $250.00 $750,000
Office Space 4,500 sq. ft. $115.00 $517,500
Communal Space 4,500 sq. ft. $100.00 $450,000
44,900 $7,546,000
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50 feasibility study for the development of the ag x innovation center in escondido, california B. R evenues
The AG X Innovation Center needs to generate more than $2 million per year to breakeven at full operation. The lower part of Table 3 itemizes a number of revenue sources that can contribute to this total.

Space Rent. Certain of the program elements would pay space rent to the Operator, at below market rates. In this analysis, we propose the Food Hub, the Incubator Wet Lab, and the CPG Lab, including the test kitchens, would pay $15/sq. ft./yr. This is the average rate for bare industrial shell space in Escondido, but these Center spaces would be fully equipped, and the Operator would cover utilities and all other building costs. For the non-lab incubator spaces, we propose a rent at two-thirds of the office market rate, $14.00 compared to $21.00. These rent levels in aggregate would generate about $529,200 per year.

Program Revenues. The Incubator and CPG Lab tenants are assumed to be independent businesses who would support their own operations through outside sales or capital investments. In contrast, the Food Hub, Agritourism and marketing program elements are assumed to generate program revenues that would help support operation of the Center.

In terms of the Food Hub, Foodshed operates on the principle that it retains only 20% of its gross revenue for operations and research and returns 80% to the farmers from whom it purchases the food.

Foodshed also endeavors to invest 5% of revenues into agricultural research to benefit its farmers. Based on the size of the Food Hub operation planned for the Center, we estimate gross revenues should be about $7.66 million per year at full operation. Assuming 15% is available for operating costs, this would generate about $1,149,800, of which $231,000 is allocated to space rent in Table 3.

The Agritourism and Grown in San Diego marketing efforts would generate subscription revenues from participating farmers. Further research is needed to determine what subscription rates would be acceptable to the participants but for the present analysis we proposed that Agritourism Farms would pay $200 per year and Grown in San Diego participants would pay $100. There are currently 100 Agritourism participants. If that number could be increased to 150 through marketing the App and other efforts, it would generate $30,000 per year in subscription revenues. Similarly, if 25% of the farms in the County (about 1,000) paid into the marketing program at $100 per year, it would generate $100,000 in program revenues.

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51 feasibility study for the development of the ag x innovation center in escondido, california These program revenues do not necessarily support the staffing levels included in the cost analysis above. However, it is anticipated the program would receive grants and corporate sponsorship revenues to help support the full program operations. As the programs are implemented, it will be necessary to adjust staffing and subscription levels to create a viable cost/revenue balance for these programs. For purposes of this analysis, we have assumed the Center could attract $400,000 in annual corporate sponsorships and also a $50,000 grant to produce the Agritourism app.

C. A dditional Potential Funding
Sources
As noted above, the Ag X Innovation Center will need to rely upon multiple funding sources at start-up and continuing sustainability to assist in the development of the necessary equipment, infrastructure, and program delivery. These funding sources can come from a mix of federal, state, corporate, and philanthropic sources as noted below:

Federal:
• U nited States Department of Commerce, Economic
Development Administration (EDA) “Build to Scale Program (B2S) – The EDA B2S Program aims to:
○ b
uild capacity for entrepreneurs and innovators to invent, improve, and bring to market new technology products
and services;
○ a
ccelerate the growth of regional economies focused on
industries of the future;
○ e
mpower communities to enable technology innovators
and entrepreneurs to pilot and test their products and
services; and
○ e
quitably and inclusively increase access to capital for technology-enabled entrepreneurs.
•
U
nited States Small Business Administration, Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs
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52 feasibility study for the development of the ag x innovation center in escondido, california • U nited States Department of Agriculture (USDA), Urban Agriculture and Innovative Production grants
•
U
SDA, Agriculture Innovation Center Program (pending
funding availability)
•
U
SDA, Agricultural Marketing Service (AMS), Federal State Marketing Improvement Program through the California
Food and Agriculture Department or UCANR
•
U
SDA, Rural Energy for America Program (REAP)
California State:
• Cal ifornia Jobs First, Regional Investment Initiative – As noted above, the City of Escondido is part of the Southern Border Region, where Agriculture + Sustainable Food systems is the top priority in San Diego County.
•
Cali
fornia Department of Food and Agriculture (CDFA),
Specialty Crop Block Grant Program
•
C
DFA, California Underserved and Small Producers Program (CUSP)
•
C
DFA, Farm to Community Food Hubs Program
•
C
DFA, Farm to School Incubator Grant Program
•
C
DFA, Resilient Food Systems Infrastructure Program
Philanthropic sources:
• S an Diego Foundation
•
J
acobs Family Foundation
•
G
ary and Mary West Foundation
•
R
ady Family Foundation
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53 feasibility study for the development of the ag x innovation center in escondido, california Select San Diego-Area Potential Corporate Sponsors:
• S empra
•
A
lbertsons
•
R
alphs
•
Vo
ns
This is far from a complete list of potential funders but an initial list of collaborative partners to support the first phase of development of the Ag X Innovation Center in the City of Escondido. We would anticipate this list to expand as program successes increase and positive community response grows.

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VII.

CONCLUSIONS
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55 feasibility study for the development of the ag x innovation center in escondido, california Through its long history of agricultural production and strong cultural heritage, the City of Escondido has the potential to emerge as a modern hub for agricultural innovation and sustainable creative practices.

As this extensive feasibility analysis concludes and given the aforementioned attributes of the City of Escondido, we recommend the creation of the Ag X Innovation Center at 455 N. Quince Street. The creation of the Ag X Innovation Center would be a unique proposition and catalytic venue to spur agricultural development appropriate for Escondido and the San Diego/Southern California region for the next several decades.

The overall foundational need and vision for the creation of an Ag X Innovation Center is based in the City’s CEDS, San Diego County’s Jobs First priority, and the current status of agriculture across San Diego County, and most specifically within the City of Escondido. In order for agriculture to remain viable and vibrant, an Ag X Innovation Center is essential for the continued development of creative and innovative practices for food and agricultural production into the future.

Not all AgTech needs to be cutting edge or breakthrough but also readily applicable to the specific needs of the local and regional community, industry, and marketplace. Creative practices that maximize a locality’s specialties and strengths are just as important for the long- term sustainability of the food and agricultural sector.

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VIII.

APPENDICES
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57 feasibility study for the development of the ag x innovation center in escondido, california Appendix A – Bios of Vine Institute team
Lon Hatamiya is the President of the Vine Institute in Woodland, California. Lon specializes in international, national, and regional economic analysis, with an emphasis on technology, food, and agriculture. He has extensive government management experience serving at both the state and federal levels. He was the first Asian American cabinet member in the history of the state of California, serving as Secretary of the California Technology, Trade and Commerce Agency, when he was appointed by Governor Gray Davis in 1999. He was also the first Asian American Administrator at the United States Department of Agriculture, where he headed up the Agricultural Marketing Service and then the Foreign Agricultural Service under President Bill Clinton. Mr. Hatamiya practiced law with the international firm of Orrick, Herrington and Sutcliffe, and worked for The Procter and Gamble Company in Cincinnati, Ohio, The Sony Corporation in Tokyo, Japan, and H.B. Orchards, Inc. in Marysville, California. He also served as a Director for the international consulting firms of LECG, LLC. and Navigant Consulting.

Mr. Hatamiya graduated from Harvard College with an A.B. in Economics. He also obtained his JD and MBA degrees from UCLA. In addition, he is native of Marysville, California, where he grew up on his three-generation family farm.

J. Kent Morgan, Ph.D. is a Primary Consultant to the Vine Institute, and the Owner and President of J. Kent Morgan Consulting, LLC, a scientific and regulatory consulting company based in Port Saint Lucie, Florida. Kent specializes in consulting with national and international clientele for scientific product research and development from proof of concept through IP/ licensing, federal registration, and the marketing/sales of the final product. He has authored multiple reports for US federal regulatory agencies including both the US EPA and FDA and has secured funding from granting agencies for his clients. He has authored multiple peer reviewed scientific journal articles and holds both US and international patents. He has worked as Chief Science Officer and Acting Chief Science Officer for Attachment "1"
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58 feasibility study for the development of the ag x innovation center in escondido, california multiple start-up companies and provided guidance to assess the value of scientific IP and has negotiated exclusive licensing agreements of multiple technologies. He has contracted
and advised clients in varying scientific fields including (but not limited to), molecular biology, microbiology, cell biology, immunology, genetics, proteomics, bioinformatics, plant pathology, vector entomology, and agricultural chemicals for plant disease management.

Dr. Morgan graduated from Brigham Young University in
Provo, UT with a B.S. in Microbiology. He obtained his Ph.D. in Microbiology/Cell and Molecular Biology from Oklahoma State University, and he performed his Postdoctoral training at the United State Department of Agriculture with the Agricultural Research Services in Fort Pierce, FL. Kent grew up in Utah and California and has lived both nationally and internationally.

Hannah Johnson McAbee, is the owner of GYV, a philanthropy and impact management firm specializing in agriculture and rural investment. She also serves as the industry engagement lead for The Vine, UC Agriculture & Natural Resources commercialization program and the Vine Institute. Hannah came to the Vine Institute with over 16 years of experience in philanthropy and strategic grantmaking and 25 years working in or around agriculture.

Hannah’s life has been steeped in the nuances of a family- operated enterprise, having grown up on her family’s ranch in underserved, Laton, California. This formative experience laid the groundwork for her career, focusing on creating opportunities for all Californians while remaining true to her passion for agriculture. Hannah has led eight-figure capital raises for multiple organizations in California, created and managed targeted grant programs that catalyzed lifesaving impact for underserved rural communities, notably the creation of the Healthy Harvest Program alongside CDFA, and been unwavering in her dedication to the sustainable future of agriculture. Hannah’s role with the Vine Institute, is to lead stakeholder engagement and ensure that the agricultural industry, producers, and partners of all sizes, have the tools, tech, and information they need to continue their work.

Hannah earned a bachelor’s degree in business administration from California State University Fresno and resides in Fresno with her husband and two sons.

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59 feasibility study for the development of the ag x innovation center in escondido, california Iulia Roman is a consultant to the Vine Institute , bringing a diverse skillset that includes analytical expertise, project management, and stakeholder engagement, with a focus on the environment and sustainability. With extensive experience in environmental impact analysis and project management, Iulia has successfully managed large environmental impact reports for clients across sectors such as residential development, renewable energy, and utility infrastructure. As a consultant with the Vine Institute , she currently supports stakeholder outreach and project management for feasibility studies focused on agriculture and food production.

Iulia holds a BA in Environmental Studies with a minor in Professional Writing from the University of California, Santa Barbara and resides in San Diego, California.

Doug Svensson is a planner and economist with forty-five years’ experience in economic development. He has been a Principal at Applied Development Economics since 1987 and its President for the past 20 years. Mr. Svensson has worked with a variety of public and private clients including the State of California, regional air quality districts, city and county governments, and nonprofit community development corporations.

Mr. Svensson has prepared economic strategic plans for
communities throughout California. He has worked with
diverse cities in urban metropolitan areas, including a range of urbanizing and more newly incorporated communities, to distinguish their economic niche and develop strategies to thrive in a competitive environment. He has also worked with small communities in rural economies, helping them to build on their agricultural and resource base as well as networking with regional efforts for economic diversification. Mr. Svensson specializes in public finance as well as his practice in economic development strategic planning. He has prepared more
than 50 fiscal and public finance studies for a wide range of project types, including general and specific plans, long range development plans for major universities, and major mixed- use developments. In the agricultural economy space, he has prepared feasibility studies for food hubs, research centers and value-added processing facilities.

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60 feasibility study for the development of the ag x innovation center in escondido, california Mr. Svensson obtained his bachelor’s degree from the University of California, Santa Barbara, where he was a Regent Scholar and he holds a master’s degree in city and regional planning from the University of California, Berkeley with an emphasis in housing and economic development.

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61 feasibility study for the development of the ag x innovation center in escondido, california Appendix B – List of Stakeholder
Name Organization Title
Scott Hancock Agrarian Institute Board Member
Marcos Mujica Agrarian Institute Founder, Director of Programs Mario DeMatteo Agrarian Institute/Bonsall Berry Farm Executive Director/Co-Founder MyPhuong Le Aquillius President
Leah Villegas Aquillius Vice President of Operations
Kat Donnelly Azentive CEO and Founder
Kim Murray Beach House Winery Owner
Brian Dawson Biome Capital Partners Partner and Founder Ryan Simpson Bonsall Berry Farm Co-Founder
Valerie Mellano Cal Poly Pomona Chair Emeritus, Plant Science Department
K.C. Cornwell California Grown Digital Marketing Director Matt Sanford City of Carlsbad Economic Development Manager Michelle Geller City of Oceanside Economic Development Manager Rob Dhohowski City of Oceanside Principal Planner
Louise Balma City of Oceanside Planning Commissioner
Tess Sangster City of San Marcos Community and Economic Development Director
Gary Shuster Coleman & Horowitt Inventor and Tech Attorney Christe Marcella Connect COO
Scott Gross CSU San Marcos AVP, Industry Partnerships
James Sly East County EDC President and CEO
Angela Nagel East County EDC Communications Manager
Dana Groot FloraBunda Farms/San Diego Farm
Bureau
Founder and President
Ellee Igoe Food Shed Cooperative Director
Frank Konyn Frank Konyn Dairy Owner
Neal Bloom Fresh Brewed Tech Founder
Cassandra Shaeg Fresh Glass Productions Founder
Chris Burroughs Garden 31 Founder
Danna Stroud GoBiz, State of California Associate Deputy Director Ramiro Contreras GoGreen Agriculture Plant Manager, San Marcos Kevin Grangetto Grangetto’s Farm and Garden Supply Owner Eddie Grangetto Grangetto’s Farms PCA and Farner
Chuck Samuelson Heal the Earth Founder
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62 feasibility study for the development of the ag x innovation center in escondido, california Mike Mellano Mellano and Company CEO
Maria Mellano Mellano Coffee Founder
Erika Mikolich Mikolich Honey Founder
Kierstin Rielly Naturally San Diego Executive Director
Brian Grover Nolen Communities/Fox Point Farms Managing Partner Eric Bulvold North County EDC CEO
Gus Skinner Nutrien Agriculture Director of Precision Ag.

Leslee Gaul Oceanside Visitors Bureau CEO and President Ari Raz Once Upon a Farm Founder
Tony Fekini Plantable Foods Founder
Wesley Burt Plus Box Founder and Executive Director
Lauren Browning QAI Senior Business Development Manager Michael Blackmun Salk 2.0, San Diego County Environmental Planner Kimberly Greene San Diego County Office of
Sustainability and Environmental
Justice, Food System Initiative
Program Manager
Taylor Reese San Diego Farm Bureau Director
Katie Byrne San Diego Farm Bureau Member and Policy
Connie Winterstein San Diego Food System Alliance Land Access and Infrastructure Director
Eduardo Velasquez San Diego Regional EDC Sr. Director, Research and Economic Development
Emily Irion San Diego Regional EDC Manager, Economic Development John McMillan San Diego State CA Jobs First Southern Border Region Craig Kolodge San Pasqual Valley Soils Business Development and Sustainability
Carl Ribaudo SMG Consulting Founder
Greg Horowitt UC San Diego Innovation Design Director
Janis Gonzales UCANR Community Education Supervisor
Darlene Ruiz UCANR Small Farms Network
Jerry Spinelli UCANR Production Horticulture Advisor
Rachel Callahan UCANR Statewide Agritourism Coordinator Ramiro Lobo UCANR, San Diego Small Farms & Agricultural Economics Advisor
Barney Rubin Union Kitchen Founder
Rep. Scott Peters U.S. Congress Congressmember
Kerri Leslie Verity CEO
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KEY-

CONSENT CALENDAR CURRENT BUSINESS

PUBLIC HEARING WORKSHOP PROCLAMATION
7/30/2025 - NO MEETING (SUMMER BREAK)
8/6/2025 - NO MEETING (SUMMER BREAK)

Page 1 ends

Escondido City CouncilJuly 23, 2025

Escondido City Council
July 23, 2025