111
Item9.
Addendum #7
Service Level Agreement; Data Security and Restoration
Version 1.0
1. Availability Service Level Agreement
For any Offering that is either (i) Software-as-a-Service or (ii) Licensed Software hosted by Trimble, the following will apply.
1.1. Target Availability. Trimble will use commercially reasonable efforts to make the Offering available with an uptime availability (time periods during which Customer has general connectivity to the Offering) (the “Target Availability”) as follows:
Offering
Target
Availability*
Cityworks 99.9%*
*Target Availability is generally for a calendar month; provided that Cityworks target availability will be calculated on a quarterly basis.
1.2. Exclusions. The calculation of uptime will not include unavailability to the extent due to: (a) Customer’s use of the Offering in a manner not authorized in the Agreement or Documentation, (b) general Internet problems, force majeure events or other factors outside of Trimble’s reasonable control, including without limitation interruption or failure of telecommunications or digital transmission links, hostile network attacks, network congestion, denial of service attack, (c) Customer’s equipment, software, network connections or other infrastructure, (d) any acts or omissions of Customer or any third-party that is not a service provider of Trimble, (e) failure by Customer to pay any applicable fees under the Agreement, or (f) Scheduled Maintenance or emergency maintenance.
1.3. Scheduled Maintenance. “ Scheduled Maintenance” means Trimble’s scheduled, routine, or other maintenance which (1) occurs at such times as may be listed on Trimble’s websites or Support Portal, or (2) Trimble notifies Customer with at least two (2) days advance notice, which can be via the Support Portal, e-mail, or in the Offering. Trimble reserves the right to schedule other maintenance periods on an as needed basis and will notify Customer in advance. Trimble will use commercially reasonable efforts to perform Scheduled Maintenance during low usage times.
1.4. Service Credits. If there is a verified failure of the Offering to meet Target Availability in a particular month and Customer makes a request for service credit within thirty (30) days after the end of such month, Customer will be entitled to a credit based on the monthly fees due for the affected Offering in such month (“Service Credit”). The Service Credit will be calculated as follows:
Service Credit = Pro Rata Fee * percentage of time that the Offering did not meet the Target Availability
The "Pro Rata Fee" means (1) for Target Availability measured monthly, one-twelfth of the total annual fee for the Offering (excluding taxes, etc.), and (2) for Target Availability measured quarterly, one-fourth of the total annual fee for the Offering (excluding taxes, etc). The Service Credit will be calculated to the nearest 30-minute interval. The total Service Credits in a month may not exceed 20% of the Monthly Fee.
Trimble will apply each Service Credit to Customer’s next invoice, provided that Customer’s account is fully paid up, without any outstanding payment issues or disputes. Customer will not receive any refunds for any unused Service Credits.
1.5. Sole Remedy. Service Credits constitute liquidated damages and are not a penalty. The Service Credits set Resolution No. 2025-115
Exhibit "A"
112
Item9.
forth in this Section are Customer’s sole and exclusive remedy for any failure to meet the Target Availability.
2. Data Security and Restoration
2.1. Software-as-a-Service and Hosted License Software. a) Trimble or its third-party hosting provider(s) shall use commercially reasonable efforts to establish and maintain reasonable administrative, physical, and technical safeguards designed to (a) protect the security, confidentiality, and integrity of Customer Data, (b) protect against anticipated threats or hazards to the security, confidentiality, and integrity of Customer Data; (c) protect against unauthorized access to or use of Customer Data; and (d) protect against unlawful processing, accidental destruction, or loss of Customer Data.
b) Trimble will use reasonable efforts to restore lost or damaged Customer Data for Offerings deployed through Trimble hosting services or as Software-as-a-Service, as described in this paragraph, if the loss or damage was caused by Trimble. Trimble will consult with Customer and provide information to Customer regarding the availability of backups and the potential limitations of data restoration.
Customer understands that some data loss may result upon restoration based on the frequency and availability of backups. If Customer Data loss or damage is not caused by Trimble, Trimble will provide support and technical assistance for data restoration subject to Trimble’s availability and payment of applicable fees at Trimble’s then-current hourly rates.
2.2. On Premises Licensed Software. Trimble does not provide regular support or technical assistance for the repair or restoration of lost or damaged Customer Data as part of support for Licensed Software not hosted by Trimble, regardless of the cause. Assistance for restoration may be available subject to Trimble’s availability and payment of applicable fees at Trimble’s then-current hourly rates.
Resolution No. 2025-115
Exhibit "A"
113
Item9.
Addendum #8
Certificate of Insurance
Trimble’s current Certificate of Insurance is included on the following page. Trimble will maintain insurance coverages set forth therein during the terms of this Agreement.
Resolution No. 2025-115
Exhibit "A"
114
Item9.
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
INSURER(S) AFFORDING COVERAGE
INSURER F :
INSURER E :
INSURER D :
INSURER C :
INSURER B :
INSURER A :
NAIC #
NAME:
CONTACT
(A/C, No):
FAX
E-MAIL
ADDRESS:
PRODUCER
(A/C, No, Ext):
PHONE
INSURED
REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
OTHER:
(Per accident)
(Ea accident)
$
$
N / A
SUBR
WVD
ADDL
INSD
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $
$
$PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person)
COMBINED SINGLE LIMIT
AUTOS ONLY
AUTOSAUTOS ONLY
NON-OWNED
SCHEDULEDOWNED
ANY AUTO
AUTOMOBILE LIABILITY
Y / N
WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY
OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under
ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
ER
OTH-
STATUTE
PER
LIMITS(MM/DD/YYYY)
POLICY EXP
(MM/DD/YYYY)
POLICY EFF
POLICY NUMBERTYPE OF INSURANCELTR
INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)
EXCESS LIAB
UMBRELLA LIAB $EACH OCCURRENCE
$AGGREGATE
$
OCCUR
CLAIMS-MADE
DED RETENTION $
$PRODUCTS - COMP/OP AGG
$GENERAL AGGREGATE
$PERSONAL & ADV INJURY
$MED EXP (Any one person)
$EACH OCCURRENCE
DAMAGE TO RENTED
$PREMISES (Ea occurrence)
COMMERCIAL GENERAL LIABILITY
CLAIMS-MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:
POLICY PRO-
JECT LOC
CERTIFICATE OF LIABILITY INSURANCE
DATE (MM/DD/YYYY)
CANCELLATION
AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2016 ACORD CORPORATION. All rights reserved.
CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED
AUTOS ONLY
E
A
408 467 5699
1,000,000
12/01/2025
1,000,000
35323540
X
WC7 11892854 (RETRO)
SEA-003638136-21
1,000,000
5,000,000
WC7 11636763 (CA)
X
20427
5,000,000
Retention
N
X
COMP/COLL DED
12/01/2024
Transportation Insurance Co
6 12/01/2025
12/01/2024
35289
1,000,000
12/01/2025
1,000,000
12/01/2025
[email protected]
73257020
Technology Errors & Omissions
B
2,000,000
1,000,000
X
GAP7011892868 (STOP GAP)
American Casualty Company of Reading, PA
1,000,000
X
C
X
1,000
12/10/2024
Azteca
2,500,000
12/01/2024
10,000,000
12/01/2024
City of Escondido is included as additional insured where required by written contract with respect to General Liability.
X
12/01/2024
Escondido, CA 92025
City of Escondido
Continental Insurance Company
A
E
Syndicate 3623 at Lloyd's
CN102488216-STND-GAWUE-24-
Limit
10,000
12/01/2025
1,000,000
79724719
D
2,000,000
20281
1,000,000
1,000,000
12/01/2025
WC7 11636746 (AOS); Ded: $250k
1735 Technology Drive, Suite 790
Marsh Risk & Insurance Services
X
San Jose, CA 95110
Azteca Systems LLC (dba Cityworks)
Trimble Inc.
Sandy, UT 84070
11075 South State #24
X
W101C7241901
12/01/2024
201 North Broadway
12/01/2024
12/01/2024
A
Petronella Massey
12/01/2025
20494
12/01/2025
408 467 5614
Federal Insurance Company
Resolution No. 2025-115
Exhibit "A"
115
Item9.
ACORD 101 (2008/01)
The ACORD name and logo are registered marks of ACORD
© 2008 ACORD CORPORATION. All rights reserved.
THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: FORM TITLE:
ADDITIONAL REMARKS
ADDITIONAL REMARKS SCHEDULE Page of
AGENCY CUSTOMER ID:
LOC #:
AGENCY
CARRIER NAIC CODE
POLICY NUMBER
NAMED INSURED
EFFECTIVE DATE:
2 2
San Jose
Fiduciary, Carrier: Great American Insurance Co, Policy Number: USF05282824, Policy Term: 12/01/2024 - 12/01/2025, Limit: $500,000 �
Directors & Officers, Carrier: ACE American Insurance Company, Policy Number: DOX G26792332 012,Policy Term; 09/15/2023- 09/15/2024, SIR: $3,000,000, Limit: $3,000,000� ��
Employment Practices Liability, Carrier: National, Casualty Company, Policy Number: PQO2400006, Policy Term; 12/01/2024 - 12/01/2025, SIR: $750,000/1,500,000 , Limit: $1,000,000� �
Certificate of Liability Insurance
CN102488216
Marsh Risk & Insurance Services�
Azteca Systems LLC (dba Cityworks)�
Trimble Inc.�
Sandy, UT 84070
11075 South State #24�
25 Resolution No. 2025-115
Exhibit "A"
116
Item9.
Form W-9 Request for Taxpayer Give form to the
(Rev. March 2024) Identification Number and Certification requester. Do not send to the IRS. Department of the Treasui . . . . . iaral Reverie Service "Y Go to www.irs.gov/FormW49 for instructions and the latest information.
Before you begin. For guidance related to the purpose of Form W-9, see Purpose of Form, below. 1 Name of entity/individual. An entry is required. (For a sole proprietor or disregarded entity, enter the owner’s name on line 1, and enter the business/disregarded entity’s name on line 2.)
Azteca Systems Holdings, LLC
2 Business name/disregarded entity name, if different from above.
Azteca Systems, LLC
3a Check the appropriate box for federal tax classification of the entity/individual whose name is entered on line 1. Check 4 Exemptions (codes apply only to only one of the following seven boxes. certain entities, not individuals; see instructions on page 3): im Individual/sole proprietor [1] C corporation O S corporation oO Partnership (] Trust/estate page) LLC. Enter the tax classification (C = C corporation, S = S corporation, P = Partnership) toe C Exempt payee code (if any) o § Note: Check the “LLC” box above and, in the entry space, enter the appropriate code (C, S, or P) for the tax ; . classification of the LLC, unless it is a disregarded entity. A disregarded entity should instead check the appropriate Exemption from Foreign Account Tax ° box for the tax classification of its owner. Compliance Act (FATCA) reporting ~~ .,
S [] Other (see instructions) code (if any)
a
3b If on line 3a you checked “Partnership” or “Trust/estate,” or checked “LLC” and entered “P” as its tax classification, 5 a and you are providing this form to a partnership, trust, or estate in which you have an ownership interest, check (Applies to accounts maintained , , , outside the United States.) this box if you have any foreign partners, owners, or beneficiaries. See instructions . 5 Address (number, street, and apt. or suite no.). See instructions. Requester’s name and address (optional) NEW - 5475 Kellenburger Road
6 City, state, and ZIP code
Dayton, OH 45424
7 List account number(s) here (optional)
ret Taxpayer Identification Number (TIN)
Enter your TIN in the appropriate box. The TIN provided must match the name given on line 1 to avoid backup withholding. For individuals, this is generally your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the instructions for Part |, later. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a or TIN, later. ——
[ Employer identification number |
See
Specific
Instructions
on
page
3. ] Social security number
Note: If the account is in more than one name, see the instructions for line 1. See also What Name and Number To Give the Requester for guidelines on whose number to enter. 8 | Part I | Certification
Under penalties of perjury, | certify that:
1. The number shown on this form is my correct taxpayer identification number (or | am waiting for a number to be issued to me); and
2. | am not subject to backup withholding because (a) | am exempt from backup withholding, or (b) | have not been notified by the Internal Revenue Service (IRS) that | am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that | am no longer subject to backup withholding; and
3.lam a U.S. citizen or other U.S. person (defined below); and
4. The FATCA code(s) entered on this form (if any) indicating that | am exempt from FATCA reporting is correct.
Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and, generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the instructions for Part Il, later.
Sign _| signature of (tee A “s 3/5/2025
1)/-|3/9)}2/9/3) 4/1
Here U.S. person Lalas Mon Ula fon Date
92969BEOAABA4SF... F . ao New line 3b has been added to this form. A flow-through entity is General Instruc lons required to complete this line to indicate that it has direct or indirect Section references are to the Internal Revenue Code unless otherwise foreign partners, owners, or beneficiaries when it provides the Form W-9 to another flow-through entity in which it has an ownership interest. This Future developments. For the latest information about developments change is intended to provide a flow-through entity with information regarding the status of its indirect foreign partners, owners, or related to Form W-9 and its instructions, such as legislation enacted ee, ‘ ; ‘ . after they were published, go to www.irs.gov/FormW9. beneficiaries, so that it can satisfy any applicable reporting requirements. For example, a partnership that has any indirect foreign What’s New partners may be required to complete Schedules K-2 and K-3. See the Partnership Instructions for Schedules K-2 and K-3 (Form 1065). noted.
Line 3a has been modified to clarify how a disregarded entity completes this line. An LLC that is a disregarded entity should check the Purpose of Form appropriate box for the tax classification of its owner. Otherwise, it oe . ‘ , :
should check the “LLC” box and enter its appropriate tax classification. An individual Of entity (Form W-9 requester) who is required to file an information return with the IRS is giving you this form because they Cat. No. 10231X Form W-9 (Rev. 3-2024)
Resolution No. 2025-115
Exhibit "A"
117
Item9.
Form W-9 (Rev. 3-2024) Page 2
must obtain your correct taxpayer identification number (TIN), which may be your social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN), to report on an information return the amount paid to you, or other amount reportable on an information return. Examples of information returns include, but are not limited to, the following.
¢ Form 1099-INT (interest earned or paid).
e Form 1099-DIV (dividends, including those from stocks or mutual funds).
e Form 1099-MISC (various types of income, prizes, awards, or gross proceeds).
e Form 1099-NEC (nonemployee compensation).
e Form 1099-B (stock or mutual fund sales and certain other transactions by brokers).
¢ Form 1099-S (proceeds from real estate transactions). e Form 1099-K (merchant card and third-party network transactions). ¢ Form 1098 (home mortgage interest), 1098-E (student loan interest), and 1098-T (tuition).
° Form 1099-C (canceled debt).
e Form 1099-A (acquisition or abandonment of secured property).
Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN.
Caution: If you don’t return Form W-9 to the requester with a TIN, you might be subject to backup withholding. See What is backup withholding, later.
By signing the filled-out form, you:
1. Certify that the TIN you are giving is correct (or you are waiting for a number to be issued);
2. Certify that you are not subject to backup withholding; or
3. Claim exemption from backup withholding if you are a U.S. exempt payee; and
4. Certify to your non-foreign status for purposes of withholding under chapter 3 or 4 of the Code (if applicable); and
5. Certify that FATCA code(s) entered on this form (if any) indicating that you are exempt from the FATCA reporting is correct. See What Is FATCA Reporting, later, for further information.
Note: If you are a U.S. person and a requester gives you a form other than Form W-9 to request your TIN, you must use the requester’s form if it is substantially similar to this Form W-9.
Definition of a U.S. person. For federal tax purposes, you are considered a U.S. person if you are:
e An individual who is a U.S. citizen or U.S. resident alien; e A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States; e An estate (other than a foreign estate); or
e A domestic trust (as defined in Regulations section 301.7701-7).
Establishing U.S. status for purposes of chapter 3 and chapter 4 withholding. Payments made to foreign persons, including certain distributions, allocations of income, or transfers of sales proceeds, may be subject to withholding under chapter 3 or chapter 4 of the Code (sections 1441-1474). Under those rules, if a Form W-9 or other certification of non-foreign status has not been received, a withholding agent, transferee, or partnership (payor) generally applies presumption rules that may require the payor to withhold applicable tax from the recipient, owner, transferor, or partner (payee). See Pub. 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.
The following persons must provide Form W-9 to the payor for purposes of establishing its non-foreign status.
e In the case of a disregarded entity with a U.S. owner, the U.S. owner of the disregarded entity and not the disregarded entity. e In the case of a grantor trust with a U.S. grantor or other U.S. owner, generally, the U.S. grantor or other U.S. owner of the grantor trust and not the grantor trust.
e In the case of a U.S. trust (other than a grantor trust), the U.S. trust and not the beneficiaries of the trust.
See Pub. 515 for more information on providing a Form W-9 or a certification of non-foreign status to avoid withholding.
Foreign person. If you are a foreign person or the U.S. branch of a foreign bank that has elected to be treated as a U.S. person (under Regulations section 1.1441-1(b)(2)(iv) or other applicable section for chapter 3 or 4 purposes), do not use Form W-9. Instead, use the appropriate Form W-8 or Form 8233 (see Pub. 515). If you are a qualified foreign pension fund under Regulations section 1.897(I)-1(d), or a partnership that is wholly owned by qualified foreign pension funds, that is treated as a non-foreign person for purposes of section 1445 withholding, do not use Form W-9. Instead, use Form W-8EXP (or other certification of non-foreign status).
Nonresident alien who becomes a resident alien. Generally, only a nonresident alien individual may use the terms of a tax treaty to reduce or eliminate U.S. tax on certain types of income. However, most tax treaties contain a provision known as a saving clause. Exceptions specified in the saving clause may permit an exemption from tax to continue for certain types of income even after the payee has otherwise become a U.S. resident alien for tax purposes.
If you are a U.S. resident alien who is relying on an exception contained in the saving clause of a tax treaty to claim an exemption from U.S. tax on certain types of income, you must attach a statement to Form W-9 that specifies the following five items.
1. The treaty country. Generally, this must be the same treaty under which you claimed exemption from tax as a nonresident alien.
2. The treaty article addressing the income.
3. The article number (or location) in the tax treaty that contains the saving clause and its exceptions.
4. The type and amount of income that qualifies for the exemption from tax.
5. Sufficient facts to justify the exemption from tax under the terms of the treaty article.
Example. Article 20 of the U.S.-China income tax treaty allows an exemption from tax for scholarship income received by a Chinese student temporarily present in the United States. Under U.S. law, this student will become a resident alien for tax purposes if their stay in the United States exceeds 5 calendar years. However, paragraph 2 of the first Protocol to the U.S.-China treaty (dated April 30, 1984) allows the provisions of Article 20 to continue to apply even after the Chinese student becomes a resident alien of the United States. A Chinese student who qualifies for this exception (under paragraph 2 of the first Protocol) and is relying on this exception to claim an exemption from tax on their scholarship or fellowship income would attach to Form W-9 a statement that includes the information described above to support that exemption.
If you are a nonresident alien or a foreign entity, give the requester the appropriate completed Form W-8 or Form 8233.
Backup Withholding
What is backup withholding? Persons making certain payments to you must under certain conditions withhold and pay to the IRS 24% of such payments. This is called “backup withholding.” Payments that may be subject to backup withholding include, but are not limited to, interest, tax-exempt interest, dividends, broker and barter exchange transactions, rents, royalties, nonemployee pay, payments made in settlement of payment card and third-party network transactions, and certain payments from fishing boat operators. Real estate transactions are not subject to backup withholding.
You will not be subject to backup withholding on payments you receive if you give the requester your correct TIN, make the proper certifications, and report all your taxable interest and dividends on your tax return.
Payments you receive will be subject to backup withholding if:
1. You do not furnish your TIN to the requester;
2. You do not certify your TIN when required (see the instructions for Part II for details);
3. The IRS tells the requester that you furnished an incorrect TIN;
4. The IRS tells you that you are subject to backup withholding because you did not report all your interest and dividends on your tax return (for reportable interest and dividends only); or
5. You do not certify to the requester that you are not subject to backup withholding, as described in item 4 under “By signing the filled- out form” above (for reportable interest and dividend accounts opened after 1983 only).
Resolution No. 2025-115
Exhibit "A"
118
Item9.
Form W-9 (Rev. 3-2024) Page 3
Certain payees and payments are exempt from backup withholding.
See Exempt payee code, later, and the separate Instructions for the Requester of Form W-9 for more information.
See also Establishing U.S. status for purposes of chapter 3 and chapter 4 withholding, earlier.
What Is FATCA Reporting?
The Foreign Account Tax Compliance Act (FATCA) requires a participating foreign financial institution to report all U.S. account holders that are specified U.S. persons. Certain payees are exempt from FATCA reporting. See Exemption from FATCA reporting code, later, and the Instructions for the Requester of Form W-9 for more information.
Updating Your Information
You must provide updated information to any person to whom you claimed to be an exempt payee if you are no longer an exempt payee and anticipate receiving reportable payments in the future from this person. For example, you may need to provide updated information if you are a C corporation that elects to be an S corporation, or if you are no longer tax exempt. In addition, you must furnish a new Form W-9 if the name or TIN changes for the account, for example, if the grantor of a grantor trust dies.
Penalties
Failure to furnish TIN. If you fail to furnish your correct TIN to a requester, you are subject to a penalty of $50 for each such failure unless your failure is due to reasonable cause and not to willful neglect.
Civil penalty for false information with respect to withholding. If you make a false statement with no reasonable basis that results in no backup withholding, you are subject to a $500 penalty.
Criminal penalty for falsifying information. Willfully falsifying certifications or affirmations may subject you to criminal penalties including fines and/or imprisonment.
Misuse of TINs. If the requester discloses or uses TINs in violation of federal law, the requester may be subject to civil and criminal penalties.
Specific Instructions
Line 1
You must enter one of the following on this line; do not leave this line blank. The name should match the name on your tax return.
If this Form W-9 is for a joint account (other than an account maintained by a foreign financial institution (FFl)), list first, and then circle, the name of the person or entity whose number you entered in Part | of Form W-9. If you are providing Form W-9 to an FFI to document ajoint account, each holder of the account that is a U.S. person must provide a Form W-9.
e Individual. Generally, enter the name shown on your tax return. If you have changed your last name without informing the Social Security Administration (SSA) of the name change, enter your first name, the last name as shown on your social security card, and your new last name.
Note for ITIN applicant: Enter your individual name as it was entered on your Form W-7 application, line 1a. This should also be the same as the name you entered on the Form 1040 you filed with your application. ¢ Sole proprietor. Enter your individual name as shown on your Form 1040 on line 1. Enter your business, trade, or “doing business as” (DBA) name on line 2.
e Partnership, C corporation, S corporation, or LLC, other than a disregarded entity. Enter the entity’s name as shown on the entity’s tax return on line 1 and any business, trade, or DBA name on line 2. ¢ Other entities. Enter your name as shown on required U.S. federal tax documents on line 1. This name should match the name shown on the charter or other legal document creating the entity. Enter any business, trade, or DBA name on line 2.
e Disregarded entity. In general, a business entity that has a single owner, including an LLC, and is not a corporation, is disregarded as an entity separate from its owner (a disregarded entity). See Regulations section 301.7701-2(c)(2). A disregarded entity should check the appropriate box for the tax classification of its owner. Enter the owner’s name on line 1. The name of the owner entered on line 1 should never be a disregarded entity. The name on line 1 should be the name shown on the income tax return on which the income should be reported. For example, if a foreign LLC that is treated as a disregarded entity for U.S. federal tax purposes has a single owner that is a U.S. person, the U.S. owner’s name is required to be provided on line 1. If the direct owner of the entity is also a disregarded entity, enter the first owner that is not disregarded for federal tax purposes. Enter the disregarded entity’s name on line 2. If the owner of the disregarded entity is a foreign person, the owner must complete an appropriate Form W-8 instead of a Form W-9. This is the case even if the foreign person has a U.S. TIN.
Line 2
If you have a business name, trade name, DBA name, or disregarded entity name, enter it on line 2.
Line 3a
Check the appropriate box on line 3a for the U.S. federal tax classification of the person whose name is entered on line 1. Check only one box on line 3a. ,
IF the entity/individual on line 1_ | THEN check the box for... is a(n)...
¢ Corporation Corporation.
e Individual or Individual/sole proprietor.
e Sole proprietorship
e LLC classified as a partnership | Limited liability company and for U.S. federal tax purposes or enter the appropriate tax © LLC that has filed Form 8832 or | Classification:
2553 electing to be taxed as a P = Partnership,
corporation C =C corporation, or
S = S corporation.
e Partnership Partnership.
e Trust/estate Trust/estate.
Line 3b
Check this box if you are a partnership (including an LLC classified as a partnership for U.S. federal tax purposes), trust, or estate that has any foreign partners, owners, or beneficiaries, and you are providing this form to a partnership, trust, or estate, in which you have an ownership interest. You must check the box on line 3b if you receive a Form W-8 (or documentary evidence) from any partner, owner, or beneficiary establishing foreign status or if you receive a Form W-9 from any partner, owner, or beneficiary that has checked the box on line 3b.
Note: A partnership that provides a Form W-9 and checks box 3b may be required to complete Schedules K-2 and K-3 (Form 1065). For more information, see the Partnership Instructions for Schedules K-2 and K-3 (Form 1065).
If you are required to complete line 3b but fail to do so, you may not receive the information necessary to file a correct information return with the IRS or furnish a correct payee statement to your partners or beneficiaries. See, for example, sections 6698, 6722, and 6724 for penalties that may apply.
Line 4 Exemptions
If you are exempt from backup withholding and/or FATCA reporting, enter in the appropriate space on line 4 any code(s) that may apply to you.
Exempt payee code.
e Generally, individuals (including sole proprietors) are not exempt from backup withholding.
e Except as provided below, corporations are exempt from backup withholding for certain payments, including interest and dividends. e Corporations are not exempt from backup withholding for payments made in settlement of payment card or third-party network transactions. ¢ Corporations are not exempt from backup withholding with respect to attorneys’ fees or gross proceeds paid to attorneys, and corporations that provide medical or health care services are not exempt with respect to payments reportable on Form 1099-MISC.
The following codes identify payees that are exempt from backup withholding. Enter the appropriate code in the space on line 4. 1—An organization exempt from tax under section 501(a), any IRA, or a custodial account under section 403(b)(7) if the account satisfies the requirements of section 401 (f)(2).
Resolution No. 2025-115
Exhibit "A"
119
Item9.
Form W-9 (Rev. 3-2024) Page 4
2—The United States or any of its agencies or instrumentalities. 3—A state, the District of Columbia, a U.S. commonwealth or territory, or any of their political subdivisions or instrumentalities. 4—A foreign government or any of its political subdivisions, agencies, or instrumentalities.
5—A corporation.
6—A dealer in securities or commodities required to register in the United States, the District of Columbia, or a U.S. commonwealth or territory.
7—A futures commission merchant registered with the Commodity Futures Trading Commission.
8—A real estate investment trust.
9—An entity registered at all times during the tax year under the Investment Company Act of 1940.
10—A common trust fund operated by a bank under section 584(a). 11—A financial institution as defined under section 581. 12—A middleman known in the investment community as a nominee or custodian.
13—A trust exempt from tax under section 664 or described in section 4947.
The following chart shows types of payments that may be exempt from backup withholding. The chart applies to the exempt payees listed above, 1 through 13.
THEN the payment is exempt
for...
IF the payment is for...
e Interest and dividend payments | All exempt payees except for 7.
Exempt payees 1 through 4 and 6
through 11 and all C corporations.
S corporations must not enter an
exempt payee code because they
are exempt only for sales of
noncovered securities acquired
prior to 2012.
e Broker transactions
e Barter exchange transactions Exempt payees 1 through 4. and patronage dividends
e Payments over $600 required to | Generally, exempt payees be reported and direct sales over | 4 through 5.7
$5,000"
e Payments made in settlement of | Exempt payees 1 through 4. payment card or third-party
network transactions
1See Form 1099-MISC, Miscellaneous Information, and its instructions. ? However, the following payments made to a corporation and reportable on Form 1099-MISC are not exempt from backup withholding: medical and health care payments, attorneys’ fees, gross proceeds paid to an attorney reportable under section 6045(f), and payments for services paid by a federal executive agency.
Exemption from FATCA reporting code. The following codes identify payees that are exempt from reporting under FATCA. These codes apply to persons submitting this form for accounts maintained outside of the United States by certain foreign financial institutions. Therefore, if you are only submitting this form for an account you hold in the United States, you may leave this field blank. Consult with the person requesting this form if you are uncertain if the financial institution is subject to these requirements. A requester may indicate that a code is not required by providing you with a Form W-9 with “Not Applicable” (or any similar indication) entered on the line for a FATCA exemption code.
A—An organization exempt from tax under section 501 (a) or any individual retirement plan as defined in section 7701 (a)(37).
B—The United States or any of its agencies or instrumentalities.
C—A state, the District of Columbia, a U.S. commonwealth or territory, or any of their political subdivisions or instrumentalities.
D—A corporation the stock of which is regularly traded on one or more established securities markets, as described in Regulations section 1.1472-1(c)(1)(i).
E—A corporation that is a member of the same expanded affiliated group as a corporation described in Regulations section 1.1472-1(c)(1)(i).
F—A dealer in securities, commodities, or derivative financial instruments (including notional principal contracts, futures, forwards, and options) that is registered as such under the laws of the United States or any state.
G—A real estate investment trust.
H—A regulated investment company as defined in section 851 or an entity registered at all times during the tax year under the Investment Company Act of 1940.
|—A common trust fund as defined in section 584(a).
J—A bank as defined in section 581.
K—A broker.
L—A trust exempt from tax under section 664 or described in section 4947(a)(1).
M—A tax-exempt trust under a section 403(b) plan or section 457(g) plan.
Note: You may wish to consult with the financial institution requesting this form to determine whether the FATCA code and/or exempt payee code should be completed.
Line 5
Enter your address (number, street, and apartment or suite number).
This is where the requester of this Form W-9 will mail your information returns. If this address differs from the one the requester already has on file, enter “NEW” at the top. If a new address is provided, there is still a chance the old address will be used until the payor changes your address in their records.
Line 6
Enter your city, state, and ZIP code.
Part I. Taxpayer Identification Number (TIN)
Enter your TIN in the appropriate box. If you are a resident alien and you do not have, and are not eligible to get, an SSN, your TIN is your IRS ITIN. Enter it in the entry space for the Social security number. If you do not have an ITIN, see How to get a TIN below.
If you are a sole proprietor and you have an EIN, you may enter either your SSN or EIN.
If you are a single-member LLC that is disregarded as an entity separate from its owner, enter the owner’s SSN (or EIN, if the owner has one). If the LLC is classified as a corporation or partnership, enter the entity’s EIN.
Note: See What Name and Number To Give the Requester, later, for further clarification of name and TIN combinations.
How to get a TIN. If you do not have a TIN, apply for one immediately.
To apply for an SSN, get Form SS-5, Application for a Social Security Card, from your local SSA office or get this form online at www.SSA.gov. You may also get this form by calling 800-772-1213. Use Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN, or Form SS-4, Application for Employer Identification Number, to apply for an EIN. You can apply for an EIN online by accessing the IRS website at www.irs.gov/EIN. Go to www.irs.gov/Forms to view, download, or print Form W-7 and/or Form SS-4. Or, you can go to www.irs.gov/OrderForms to place an order and have Form W-7 and/or Form SS-4 mailed to you within 15 business days.
If you are asked to complete Form W-9 but do not have a TIN, apply for a TIN and enter “Applied For” in the space for the TIN, sign and date the form, and give it to the requester. For interest and dividend payments, and certain payments made with respect to readily tradable instruments, you will generally have 60 days to get a TIN and give it to the requester before you are subject to backup withholding on payments. The 60-day rule does not apply to other types of payments.
You will be subject to backup withholding on all such payments until you provide your TIN to the requester.
Note: Entering “Applied For” means that you have already applied for a TIN or that you intend to apply for one soon. See also Establishing U.S. status for purposes of chapter 3 and chapter 4 withholding, earlier, for when you may instead be subject to withholding under chapter 3 or 4 of the Code.
Caution: A disregarded U.S. entity that has a foreign owner must use the appropriate Form W-8.
Resolution No. 2025-115
Exhibit "A"
120
Item9.
Form W-9 (Rev. 3-2024) Page 5
Part Il. Certification
To establish to the withholding agent that you are a U.S. person, or resident alien, sign Form W-9. You may be requested to sign by the withholding agent even if item 1, 4, or 5 below indicates otherwise.
For a joint account, only the person whose TIN is shown in Part | should sign (when required). In the case of a disregarded entity, the person identified on line 1 must sign. Exempt payees, see Exernpt payee code, earlier.
Signature requirements. Complete the certification as indicated in items 1 through 5 below.
1. Interest, dividend, and barter exchange accounts opened before 1984 and broker accounts considered active during 1983.
You must give your correct TIN, but you do not have to sign the certification.
2. Interest, dividend, broker, and barter exchange accounts opened after 1983 and broker accounts considered inactive during 1983. You must sign the certification or backup withholding will apply. If you are subject to backup withholding and you are merely providing your correct TIN to the requester, you must cross out item 2 in the certification before signing the form.
3. Real estate transactions. You must sign the certification. You may cross out item 2 of the certification.
4. Other payments. You must give your correct TIN, but you do not have to sign the certification unless you have been notified that you have previously given an incorrect TIN. “Other payments” include payments made in the course of the requester’s trade or business for rents, royalties, goods (other than bills for merchandise), medical and health care services (including payments to corporations), payments to a nonemployee for services, payments made in settlement of payment card and third-party network transactions, payments to certain fishing boat crew members and fishermen, and gross proceeds paid to attorneys (including payments to corporations).
5. Mortgage interest paid by you, acquisition or abandonment of secured property, cancellation of debt, qualified tuition program payments (under section 529), ABLE accounts (under section 529A), IRA, Coverdell ESA, Archer MSA or HSA contributions or
distributions, and pension distributions. You must give your correct TIN, but you do not have to sign the certification.
What Name and Number To Give the Requester
For this type of account: Give name and SSN of:
. Individual The individual
Two or more individuals (joint account) | The actual owner of the account or, other than an account maintained by if combined funds, the first individual an FFI on the account!
PO =
Each holder of the account
wo . Two or more U.S. persons
(joint account maintained by an FFI)
The minor?
a . Custodial account of a minor
(Uniform Gift to Minors Act)
a. The usual revocable savings trust
(grantor is also trustee)
The grantor-trustee!
a
b. So-called trust account that is not The actual owner’ a legal or valid trust under state law
The owner3
2 Sole proprietorship or disregarded
entity owned by an individual
<i . Grantor trust filing under Optional The grantor*
Filing Method 1 (see Regulations
section 1.671-4(b)(2)(i)(A))™*
For this type of account: Give name and EIN of:
8. Disregarded entity not owned by an The owner
individual
9. A valid trust, estate, or pension trust Legal entity*
10. Corporation or LLC electing corporate | The corporation status on Form 8832 or Form 2553
11. Association, club, religious, charitable, | The organization educational, or other tax-exempt
organization
12. Partnership or multi-member LLC
13. A broker or registered nominee
14. Account with the Department of
Agriculture in the name of a public
entity (such as a state or local
government, school district, or prison)
that receives agricultural program
payments
. Grantor trust filing Form 1041 or
under the Optional Filing Method 2,
requiring Form 1099 (see Regulations
section 1.671-4(b)(2)(i)(B))™*
The partnership
The broker or nominee
The public entity
1 The trust
a
‘List first and circle the name of the person whose number you furnish.
If only one person on a joint account has an SSN, that person’s number must be furnished.
2 Circle the minor’s name and furnish the minor’s SSN.
3You must show your individual name on line 1, and enter your business or DBA name, if any, on line 2. You may use either your SSN or EIN (if you have one), but the IRS encourages you to use your SSN. ‘List first and circle the name of the trust, estate, or pension trust. (Do not furnish the TIN of the personal representative or trustee unless the legal entity itself is not designated in the account title.) *Note: The grantor must also provide a Form W-9 to the trustee of the trust.
**For more information on optional filing methods for grantor trusts, see the Instructions for Form 1041.
Note: If no name is circled when more than one name is listed, the number will be considered to be that of the first name listed.
Secure Your Tax Records From Identity Theft
Identity theft occurs when someone uses your personal information, such as your name, SSN, or other identifying information, without your permission to commit fraud or other crimes. An identity thief may use your SSN to get a job or may file a tax return using your SSN to receive a refund.
To reduce your risk:
e Protect your SSN,
e Ensure your employer is protecting your SSN, and
° Be careful when choosing a tax return preparer.
If your tax records are affected by identity theft and you receive a notice from the IRS, respond right away to the name and phone number printed on the IRS notice or letter.
If your tax records are not currently affected by identity theft but you think you are at risk due to a lost or stolen purse or wallet, questionable credit card activity, or a questionable credit report, contact the IRS Identity Theft Hotline at 800-908-4490 or submit Form 14039.
For more information, see Pub. 5027, Identity Theft Information for Taxpayers.
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Exhibit "A"
121
Item9.
Form W-9 (Rev. 3-2024) Page 6
Victims of identity theft who are experiencing economic harm or a systemic problem, or are seeking help in resolving tax problems that have not been resolved through normal channels, may be eligible for Taxpayer Advocate Service (TAS) assistance. You can reach TAS by calling the TAS toll-free case intake line at 877-777-4778 or TTY/TDD 800-829-4059.
Protect yourself from suspicious emails or phishing schemes.
Phishing is the creation and use of email and websites designed to mimic legitimate business emails and websites. The most common act is sending an email to a user falsely claiming to be an established legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft.
The IRS does not initiate contacts with taxpayers via emails. Also, the IRS does not request personal detailed information through email or ask taxpayers for the PIN numbers, passwords, or similar secret access information for their credit card, bank, or other financial accounts.
If you receive an unsolicited email claiming to be from the IRS, forward this message to [email protected]. You may also report misuse of the IRS name, logo, or other IRS property to the Treasury Inspector General for Tax Administration (TIGTA) at 800-366-4484. You can forward suspicious emails to the Federal Trade Commission at [email protected] or report them at www.ftc.gov/complaint. You can contact the FTC at www.ftc.gov/idtheft or 877-IDTHEFT (877-438-4338).
If you have been the victim of identity theft, see www./dentityTheft.gov and Pub. 5027.
Go to www.irs.gov/IdentityTheft to learn more about identity theft and how to reduce your risk.
Privacy Act Notice
Section 6109 of the Internal Revenue Code requires you to provide your correct TIN to persons (including federal agencies) who are required to file information returns with the IRS to report interest, dividends, or certain other income paid to you; mortgage interest you paid; the acquisition or abandonment of secured property; the cancellation of debt; or contributions you made to an IRA, Archer MSA, or HSA. The person collecting this form uses the information on the form to file information returns with the IRS, reporting the above information.
Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation and to cities, states, the District of Columbia, and U.S. commonwealths and territories for use in administering their laws. The information may also be disclosed to other countries under a treaty, to federal and state agencies to enforce civil and criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. You must provide your TIN whether or not you are required to file a tax return. Under section 3406, payors must generally withhold a percentage of taxable interest, dividends, and certain other payments to a payee who does not give a TIN to the payor.
Certain penalties may also apply for providing false or fraudulent information.
Resolution No. 2025-115
Exhibit "A"
122
Item9.
STAFF REPORT
October 15, 2025
File Number 1330-85
SUBJECT
CONTINUING THE EMERGENCY REPAIR OF THE ESCONDIDO TRUNK SEWER MAIN
DEPARTMENT
Utilities Department
RECOMMENDATION
Request the City Council adopt Resolution No. 2025-127, declaring that pursuant to the terms of Section 22050 of the California Public Contract Code, the City Council finds there is a need to continue the emergency repair of the Escondido Trunk Sewer Main. The Resolution, which must be passed by four - fifths vote , also declares that public interest and necessity demand the immediate expenditure to safeguard life, health, or property.
Staff Recommendation: Approval (Utilities: Kyle Morgan, Interim Director of Utilities) Presenter: Kyle Morgan, Interim Director of Utilities
ESSENTIAL SERVICE – Yes, Keep City Clean for Public Health and Safety; Sewer COUNCIL PRIORITY –Improve Public Safety
FISCAL ANALYSIS
Funding for the Emergency Repair of the Escondido Trunk Sewer Main is available in the Wastewater Capital Improvement Project (“CIP”) budget for Sewer Trunk Main, CIP No. 801913.
PREVIOUS ACTION
On June 26, 2024, the City Council adopted Resolution No. 2024 -86, ratifying Proclamation No. 2024-02, affirming that it was appropriate for City staff to forego competitive bidding procedures and work with contractors for the necessary emergency repair of the failing trunk sewer main.
On July 10, 2024, the City Council adopted Resolution No. 2024 -94, reaffirming that there was a need to continue efforts toward emergency repair of the failing trunk sewer main.
On July 17, 2024, the City Council adopted Resolution No. 2024-103, reaffirming that there was a need to continue efforts toward emergency repair of the failing trunk sewer main. 123
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On July 23, 2024, a Public Improvement Agreement with CCL Contracting, Inc. was executed for the emergency repair of Section 2, from Beech Street to Grape Day Park, on a time and materials basis in an amount not to exceed $10,240,691.
On August 7, 2024, the City Council adopted Resolution No. 2024-106, reaffirming that there was a need to continue efforts toward emergency repair of the failing trunk sewer main. In addition, City Council approved a budget adjustment in the amount of $12,036,225 to fund the emergency repair of the failing trunk sewer main, consisting of $7,036,225 from the unallocated Wastewater Reserves and $5,000,000 from Capital Improvement Project No. 801508, Recycled Easterly Ag MFRO.
On August 21, 20 24, a Public Improvement Agreement with J.R. Filanc Construction Company was executed for the emergency repair of Section 1, Ash Street from the Firestone Complete Auto Care parking lot to the Walmart Neighborhood Market parking lot, on a time and material s basis in an amount not to exceed $1,795,534.
On August 28, 2024, the City Council adopted Resolution No. 2024-117, reaffirming that there was a need to continue efforts toward emergency repair of the failing trunk sewer main.
On September 11, 2024, the City Council adopted Resolution No. 2024-131, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer main.
On October 2, 2024, the City Council adopted Resolution No. 2024-141, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer main.
On October 23, 2024, the City Council adopted Resolution No. 2024 -146, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer main.
On November 20, 2024, the City Council adopted Resolution No. 2024-162, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer main.
On December 4, 2024, the City Council adopted Reso lution No. 2024 -178, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer main.
On January 8, 2025, the City Council adopted Resolution No. 2025 -03, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer main.
On January 29, 2025, the City Council adopted Resolution No. 2025-06, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer main.
On February 19, 2025, the City Council adopted Resolution No. 2025-08, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer line. 124
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On March 19, 2025, the City Council adopted Resolution No. 2025 -14, reaffirming that there was a need to continue efforts toward the emergency repair of the failing trunk sewer line.
On April 2, 2025, the City Council adopted Resolution No. 2025 -19, reaffirming that there was a need to continue efforts toward the emergency repair for the failing trunk sewer line.
On April 16, 2025, the City Council adopted Resolution No. 2025-30, reaffirming that there was a need to continue efforts toward the emergency repair for the failing trunk sewer line.
On May 7, 2025, the City Counc il adopted Resolution No. 2025 -38, reaffirming that there was a need to continue efforts toward the emergency repair for the failing trunk sewer line.
On May 21, 2025, the City Council adopted Resolution No. 2025-54, reaffirming that there was a need to continue efforts toward the emergency repair for the failing trunk sewer line.
On June 4, 2025, the City Council adopted Resolution No. 2025 -58, reaffirming that there was a need to continue efforts toward the emergency repair for the failing trunk sewer line.
On June 18, 2025, the City Council adopted Resolution No. 2025-64, reaffirming that there was a need to continue efforts toward the emergency repair for the failing trunk sewer line.
On July 16, 2025, the City Council adopted Resolution No. 2025 -86, reaffirming that there was a need to continue efforts toward the emergency repair for the failing trunk sewer line.
On August 13, 2025, the City Council adopted Resolution No. 2025-102, reaffirming that there was a need to continue efforts toward the emergency repair for the failing trunk sewer line, authorized Change Order No. 01 to the Public Improvement agreement (“Agreement”) with CCL Contracting, Inc. for an amount not to exceed $1, 397, 320.60; and approved a budget adjustment in the amount of $1,397,320.60, from the Unallocated Reserves to the Wastewater Capital Improvement Project (“CIP”) budget for Trunk Main/Norlak-HARRF.
On August 27, 2025, the City Council adopted Resolution No. 2025-109, reaffirming that there was a need to continue efforts toward the emergency repair for the failing trunk sewer line.
On September 17, 2025, the City Council adopted Resolution No. 2025-113, reaffirming that there was a need to continue efforts toward the emergency repair for the failing trunk sewer line.
On October 1, 2025, the City Council adopted Resolution No. 2025-123, reaffirming that there was a need to continue efforts toward the emergency repair for the failing trunk sewer line.
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BACKGROUND
The City’s trunk sewer mains, constructed in the 1950’s, are a critical and integral part of the City’s wastewater system. In June 2024, during routine closed -circuit television inspection, Utilities staff identified multiple failed and severely deteriorated sections of 18 -inch and 21-inch trunk sewer main. In order to act quickly to avoid catastrophic failure, a local emergency was proclaimed on June 20, 2024, by the City Manager, serving as the Director of Emergency Services. The original scope of work included two sections of severely deteriorated trunk sewer main that are in critical condition. These sections are shown in Figure 1 below and defined as follows:
Section 1: Ash Street - paralleling the Escondido Creek, from the Firestone Complete Auto Care (“Firestone”) parking lot to the Walmart Neighborhood Market (“Walmart”) parking lot; and Section 2: Beech Street to Grape Day Park - paralleling the Escondido Creek, traversing a short section of North Hickory Street, then continuing in East Pennsylvania Street from North Hi ckory and extending into Grape Day Park.
Figure 1
Section 1 emergency repair work began on August 7, 2024. All repairs to Section 1 are now complete.
Section 2 emergency repair work began on July 25, 2024, and is anticipated to be complete by January 16, 2026. The contractor, CCL Contracting, Inc. (“CCL”), has installed approximately 4,030 linear feet of trunk main, from Grape Day Park to Hickory Street, within Pennsylvania Avenue; north within Hickory Street from the intersection of Pennsylvania Avenue and Hickory Street to just south of the intersection of 126
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Hickory Street and L ansing Circle ; easterly through the Westmont Assisted Living Community ; and continues easterly within the City’s Escondido Creek private property/public utility easement, paralleling the south side of Escondido Creek to Grape Street. The additional restoration work at Westmont Assisted Living Community, which included abandonment and slurry fill of 2,000 feet of 21-inch sewer , abandonment and slurry fill of 14 manholes, and repair of 40 feet of 21 -inch trunk sewer line within the bike path at Date Street, has been completed.
In June 2025, a construction conflict with a 36” diameter water transmission main along the bike path was identified. City staff determined that rerouting the sewer trunk main from the bike path into East Valley Parkway, provided the best value to the city from a cost, constructability, product longevity, and risk mitigation. Construction on North Fig Street, south of the channel bridge, between Washington Avenue and Valley Parkway, began on September 2, 2025, and was completed on September 19, 2025. Utilities Construction on East Valley Parkway between Beech Street and Fig Street, began on September 23, 2025 with work occurring at night to minimize the impact to the community. Electronic message boards and signs updating the community are in place, where appropriate, throughout the construction project site and will remain through the duration of work.
Utilities staff continues to communicate and coordinate with affected businesses and residents within the construction zone of influence , as well as other City Departments regarding current and upcoming construction, including the upcoming road closures.
RESOLUTIONS
a) Resolution No. 2025-127
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RESOLUTION NO. 2025-127
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ESCONDIDO, CALIFORNIA, FINDING THAT AN
EMERGENCY CONTINUES TO REQUIRE THE IMMEDIATE
REPAIR OF THE ESCONDIDO TRUNK SEWER MAIN
WHEREAS, the City Council recognizes that the City’s trunk sewer main pipeline defined in the two following critical sections are at risk of imminent, catastrophic failure:
Section 1: Ash Street - paralleling the Escondido Creek, from the Firestone Complete Auto C are parking lot to the Walmart Neighborhood Market parking lot; and Section 2: Beech Street to Grape Day Park - paralleling the Escondido Creek, traversing a short section of North Hickory Street, then continuing in East Pennsylvania Street from North Hic kory and extending into Grape Day Park; and
WHEREAS, pursuant to the approval of Resolution No. 2024 -86 on June 26, 2024, ratifying Proclamation No. 2024-02; Resolution No. 2024-94 on July 10, 2024; Resolution No. 2024-103 on July 17, 2024; Resolution No. 2024-106 on August 7, 2024 ; Resolution No. 2024 -117 on August 28, 2024 ; Resolution No. 2024 -131 on September 11, 2024 ; Resolution No. 2024 -141 on October 2, 2024 ; Resolution No. 2024 -146 on October 23, 2024; Resolution No. 2024 -162 on November 20, 2024; Resolution 2024-178 on December 4, 2024; Resolution No. 2025-03 on January 8, 2025 ; Resolution No. 2025-06 on January 29, 2025; Resolution No. 2025-08 on February 19, 2025; Resolution No. 2025-14 On March 19 , 2025 ; Resolution No. 2025-19 on April 2, 2025 ; Resolution No. 2025-30 on April 16, 2025 ; Resolution No. 2025-38 on May 7, 2025; Resolution No. 2025-54 on May 21, 2025; Resolution No. 2025- 58 on June 4, 2025 , Resolution No. 2025-64 on June 18, 2025, and Resolution No. 2025 -86 on July 16, 2025, Resolution No. 2025-102 on August 13, 2025, Resolution No. 2025 -109 on August 27, 2025, and 128
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Resolution No. 2025-113 on September 17, 2025, and Resolution No. 2025-123 on October 1, 2025, the City Council previously found that the failing trunk sewer risk constitutes an emergency and found it appropriate for Utilities Staff to proceed to contract services without adopting plans, specifications, working details, or giving notice of bids to award contracts; and WHEREAS, on August 7, 2024, City Council approved a budget adjustment in the amount of twelve million, thirty-six thousand, two-hundred twenty-five dollars ($12,036,225) to fund the emergency repair of the failing trunk sewer main, consisting of $7,036,225 from the unallocated Wastewater Reserves and $5,000,000 from Capital Improvement Project No. 801508, Recycled Easterly Ag MFRO; and WHEREAS, the City entered into a Public Improvement Agreement (“Agreement”) with CCL Contracting, Inc., in an amount n ot to exceed ten million, two-hundred forty-thousand, six hundred ninety-one dollars ($10,240,691) on July 23, 2024; and
WHEREAS, the City entered into a Public Improvement Agreement (“Agreement”) with J.R. Filanc Construction Company in an amount not to exceed one million, seven hundred ninety-five thousand, five hundred thirty-four dollars ($1,795,534) on August 21, 2024; and WHEREAS, the City Council approved Change Order No. 1 and a budget adjustment to the project in the amount of $1,397,320.60 to fund the remaining portion of Section 2 emergency repairs due to a trunk sewer alignment conflict with the existing 36” water main, bringing the total contract value with CCL Contracting, Inc., resulting in a contract value of not to exceed eleven million, six-hundred thirty-eight thousand and eleven dollars and sixty cents ($11,638,011.60); and WHEREAS, pursuant to Section 22050 of the Public Contract Code, the City Council must review the emergency action every 14 days, or at its next regularly scheduled meeting, and determine by a four- fifths vote there is a need to continue the action; and 129
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WHEREAS, this City Council desires at this time and deems it to be in the best public interest to continue the emergency action and approve the recommended change order and budget adjustment.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California , as follows:
1. That the above recitations are true.
2. That the City Council finds the failure of the trunk sewer main is a public health a nd safety emergency; that this emergency will not permit the delay that would result from a competitive bidding process; and that the proposed action and expenditure is still necessary to respond to the emergency requiring immediate repair of the trunk sewer main.
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STAFF REPORT
October 15, 2025
File Number 0470-26
SUBJECT
PURCHASE NINETEEN (19) FORD POLICE INTERCEPTOR UTILITY VEHICLES
DEPARTMENT
Public Works Department, Fleet Services Division
RECOMMENDATION
Request the City Council adopt Resolution No. 202 5-129 authorizing the Fleet Services Division of the Public Works Department to purchase nineteen (19) Ford Police Interceptor Utility Vehicles in the amount of $1,097,084.39 by utilizing a cooperative purchase agreement through the City of Sacramento, Contract No. B24153311011, and approving the disposal of the surplus vehicles via auction.
Staff Recommendation: Approval (Public Works: Joseph Goulart, Director of Public Works) Presenter: Jeramiah Jennings, Fleet Maintenance Manager ESSENTIAL SERVICE – Yes, internal requirement in support of Police Services COUNCIL PRIORITY – Improve Public Safety
FISCAL ANALYSIS
Funding from Measure I was allocated in the Fiscal Year 2026 Budget to purchase nineteen (19) police patrol vehicles, and is available for this purchase.
The funds generated by the auction sale of the Patrol Vehicles being replaced will be deposited into the Fleet Reserve Fund. The potential revenue generated by the disposal of the surplus property is unknown until the results of the auction are returned to the City of Escondido (“City”).
BACKGROUND
This purchase is to replace nineteen (19) Police Patrol Vehicles that have met their life expectancy of eight (8) years.
Upon approval from the City Council, nineteen (19) Ford Police Interceptor Utility Vehicles will be purchased from Downtown Ford of Sacramento, California, in the amount of $1,097,084.39, utilizing a cooperative purchase agreement through the City of Sacramento as allowed per Escondido Municipal 131
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Code, Chapter 10, Article 5, Section 10 -91, authorizing the purchase of supplies and equipment utilizing cooperative purchase programs.
Pursuant to the Escondido Municipal Code, Chapter 10, Article 7, Section 10-147, City property that is no longer required for public use and is declared as surplus property. The City’s current practice of disposing of surplus vehicles and equipment is through public auction. Staff recommends the disposal of the vehicles being replaced by this purchase via public auction with the city-contracted auction company.
RESOLUTIONS
a) Resolution No. 2025-129
ATTACHMENTS
a) Attachment “1”— Downton Ford Sacramento Quote
b) Attachment “2”— Downton Ford Sacramento Quote
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RESOLUTION NO. 2025-129
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ESCONDIDO, CALIFORNIA, AUTHORIZING THE
PURCHASE OF NINETEEN (19) FORD POLICE
INTERCEPTOR UTILITY VEHICLES FROM DOWNTOWN
FORD OF SACRAMENTO BY UTILIZING A COOPERATIVE
PURCHASE AGREEMENT THROUGH THE CITY OF
SACRAMENTO, CALIFORNIA , AND AUTHORIZING THE
DISPOSAL OF THE SURPLUS VEHICLES VIA AUCTION
WHEREAS, staff evaluated the current fleet of p atrol vehicles and determined many have met their standard life expectancy of eight (8) years; and
WHEREAS, staff confirmed the need for replacement of nineteen (19) Ford Police Interceptor Utility Vehicles (“vehicles”) due to their current age, mileage, engine hours, and mechanical condition; and
WHEREAS, Ford Motor Company is the manufacturer of the vehicles; and WHEREAS, the City of Sacramento, California, conducted a competitive bid process for Police Interceptor Utility Vehicles and Downtown Ford of Sacramento, California, was deemed to be the lowest responsive bidder; and
WHEREAS, the State of California contract for Police Patrol Interceptor Utility Vehicles is Contract No. B24153311011; and
WHEREAS, the City is utilizing cooperative purchasing with the City of Sacramento, California, and pursuant to 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
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WHEREAS, staff recommends purchasing nineteen (19) Police Interceptor Utility Vehicles from Downtown Ford of Sacramento in the amount of $1,097,084.39, which includes sales tax, delivery, and all other associated fees; and
WHEREAS, the existing vehicles being replaced by this purchase 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 purch ase from Downtown Ford of Sacramento using a cooperative purchase agreement with the City of Sacramento, California, Contract No. B24153311011; and WHEREAS, Measure I Funds were allocated for this purchase in the Fiscal Year 2026 Budget; and WHEREAS, the City Council desires at this time and deems it to be in the best public interest to accept the staff recommendations and approve the disposal of the surplus vehicles via public auction.
NOW, THEREFORE, BE IT RESOLVED by the City Council of t he City of Escondido, California , as follows:
1. That the above recitations are true.
2. That the City Council approves and adopts, on behalf of the City, the Cooperative Purchase agreement through the City of Sacramento, California, as allowed pursuant to Escondido Municipal Code Chapter 10, Article 5, Section 10-91.
3. That the City Council adopts Resolution No. 2025-129 authorizing the Fleet Services Division to purchase nineteen (19) Ford Interceptor Police Utility Vehicles from Downtown Ford of Sacramento in the amount of $1,097,084.39, which includes sales tax, delivery, and all other fees. 134
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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.
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Name DATE 10/1/2025
Address SALES REP BETHANY
City ESCONDIDO State CA Zip 92025 PHONE 916-848-3177
Phone FOB ESCONDIDO
Qty Unit Price TOTAL
13 $47,562.00 $618,306.00
OPTIONS
13 $790.00 $10,270.00
13 $94.00 $1,222.00
13 $160.00 $2,080.00
13 $50.00 $650.00
13 $3,170.00 $41,210.00
13 $100.00 $1,300.00
13 $352.00 $4,576.00
13 DOC FEE $85.00 $1,105.00
SALES TAX CALCULATED AT 8.75%
SubTotal $680,719.00
DELIVERY $11,375.00
Cash SALES TAX $59,562.91
Check CA Tire Tax $113.75
Credit Card TOTAL $751,770.66
Name
CC #
Expires
99B / 44U - 3.3L V6 GAS ENGINE - INCLUDED
BAS-100125-1345
ERNESTO DE LA CRUZ - CITY OF ESCONDIDO
475 N. SPRUCE ST
760-839-4883
PRICING BELOW SUBJECT TO CHANGE
153 - FRONT LICENSE PLATE - INCLUDED
51S - DUAL UNITY SPOT LAMPS
SIGNATURE________________________________DATE_________
Description
2026 FORD INTERCEPTOR UTILITY AWD
CITY OF SACRAMENTO CONTRACT B24153311011
EXTERIOR COLOR: BLACK
$500 DISCOUNT WITH PAYMENT IN 20 DAYS
Office Use Only
BASED ON REGISTRATION ADDRESS
76D - DEFLECTOR PLATE
92R - PRIVACY GLASS / SOLAR TINT 2ND ROW
52P - HIDDEN DOOR LOCK PLUNGERS
59B - KEYED ALIKE 1284X
90E - BALLISTIC DOOR PANELS LEVEL III+ DRIV / PASS
60R - NOISE SUPPRESSION BONDS
525 N16TH STREET, SACRAMENTO, CA 95811
PHONE: 916-299-3529
QUOTE
Payment Details
Customer
Attachment "1"
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Name DATE 10/1/2025
Address SALES REP BETHANY
City ESCONDIDO State CA Zip 92025 PHONE 916-848-3177
Phone FOB ESCONDIDO
Qty Unit Price TOTAL
6 $47,562.00 $285,372.00
OPTIONS
6 $790.00 $4,740.00
6 $50.00 $300.00
6 $3,170.00 $19,020.00
6 $100.00 $600.00
6 $352.00 $2,112.00
6 DOC FEE $85.00 $510.00
SALES TAX CALCULATED AT 8.75%
SubTotal $312,654.00
DELIVERY $5,250.00
Cash SALES TAX $27,357.23
Check CA Tire Tax $52.50
Credit Card TOTAL $345,313.73
Name
CC #
Expires
SIGNATURE________________________________DATE_________
Description
2026 FORD INTERCEPTOR UTILITY AWD
CITY OF SACRAMENTO CONTRACT B24153311011
EXTERIOR COLOR: BLACK
$500 DISCOUNT WITH PAYMENT IN 20 DAYS
BAS-1002-0815
ERNESTO DE LA CRUZ - CITY OF ESCONDIDO
475 N. SPRUCE ST
760-839-4883
76D - DEFLECTOR PLATE
59B - KEYED ALIKE 1284X
90E - BALLISTIC DOOR PANELS LEVEL III+ DRIV / PASS
60R - NOISE SUPPRESSION BONDS
PRICING BELOW SUBJECT TO CHANGE
153 - FRONT LICENSE PLATE - INCLUDED
51S - DUAL UNITY SPOT LAMPS
Office Use Only
BASED ON REGISTRATION ADDRESS
99B / 44U - 3.3L V6 GAS ENGINE - INCLUDED
525 N16TH STREET, SACRAMENTO, CA 95811
PHONE: 916-299-3529
QUOTE
Payment Details
Customer
Attachment "2"
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ORDINANCE NO. 2025-06R
AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ESCONDIDO, CALIFORNIA, EXTENDING
URGENCY ORDINANCE 2024 -12R PROHIBITING NEW
COMMERCIAL BATTERY ENERGY STORAGE SYSTEMS
WITHIN THE CITY OF ESCONDIDO, ADOPTED AS AN
URGENCY MEASURE, AND FINDING THE ACTION TO BE
EXEMPT FROM CEQA
WHEREAS, the City of Escondido, California, (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, in general, a Battery Energy Storage Systems ("BESS") facility collects energy from the grid, stores it, and then discharges that energy later to provide electricity or other grid services when needed, typically at times of high demand; and
WHEREAS, Escondido Energy Center, LLC ("Applicant") is proposing to construct a BESS facility on land currently owned by Escondido Energy Center, LLC located at 1968 Don Lee Place (Assessor’s Parcel No.: 228-381-74-00); and
WHEREAS, on February 7, 2024 , Applicant filed a land use development application (Planning Case No. PL24 -0037), constituting a request for Major Plot Plan to establish a 50-megawatt (MW) BESS facility comprised of 31 lithium-ion battery storage enclosures (“Project”). The proposed Project is located within the General Industrial (M -2) zoning designation. Article 26 of the Escondido Zoning Ordinance (Chapter 33 of the Escondido Municipal Code) permits for a wide -range of activities, including those considered “heavy” or “intensive” outside storage needs, heavier equipment, and operational characteristics that require the least restrictive design standards. The General Industrial zoning 138
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STAFF REPORT
October 15, 2025
File Number 0873-01
SUBJECT
HOME INVESTMENT PARTNERSHIP PROGRAM UPDATE
DEPARTMENT
Development Services- Housing & Neighborhood Services Division
RECOMMENDATION
Request the City Counci l receive this update on the HOME Investment Partnership Program (“HOME”) and affirm current priorities or provide guidance on program changes.
Staff Recommendation: Provide Direction (Development Services: Christopher McKinney) Presenter: Danielle Lopez, Housing & Neighborhood Services; Norma Olquin, Management Analyst ESSENTIAL SERVICE – Yes, Land Use/Development
COUNCIL PRIORITY – Increase Retention and Attraction of People and Businesses to Escondido; Encourage Housing Development
FISCAL ANALYSIS
The City of Escondido (“City”) receives an annual federal entitlement from the Department of Housing and Urban Development (“HUD”) for community development and housing activities. On May 13, 2025, HUD announced that the City will receive an allocation of $590,369 in HOME funds for Fiscal Year 2025- 2026. HOME funds will be used for the provision of affordable housing. HUD funds must assist the low- and moderate-income residents of Escondido and may not be used to supplant City funds. HOME projects and administrative costs will be funded with both HOME and Successor Housing Agency funds, and no General Funds will be used for these projects.
States and cities that receive HOME funds must match the HOME funds they spend on affordable housing development, with their own 25 percent contribution. The matching funds must be from a non-federal resource. The City does this through the use of Housing Successor Agency funding.
Additionally, the match can take many forms, including in -kind contributions such as labor, construction materials, and land for HOME eligible projects. Other contributions, such as foregone taxes, other foregone fees, and infrastructure improvements, may also count toward the matching requirement , if they are used specifically for projects funded by HOME dollars. The matching requirement must be met in the same fiscal year that HOME funds are used, but if a jurisdiction provides more matching funds than 139
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are required in a given year, it can carry those funds forward to meet the matching requirement in subsequent years.
PREVIOUS ACTION
On August 7, 2024, the City Council conducted a public hearing to solicit and consider citizen input on the Fiscal Year 2024-2025 HUD Annual Action Plan for the use of CDBG and HOME funds and a dopted Resolution No. 2024-110 approving Fiscal Year 2024-2025 HUD Annual Action Plan for use of CDBG and HOME Funds, conditionally commit funds to projects, authorize the Director of Community Development to execute contracts as appropriate and approve the submittal of the Fiscal Year 2024-2025 Annual Action Plan to HUD, including the release of a Request for Proposal (“RFP”) for affordable housing development.
On June 25, 2025, the City Council conducted a public hearing to solicit and consider citizen input on the Fiscal Year 2025-2029 Consolidated Plan and Annual Action Plan for the use of CDBG and HOME funds; and adopted Resolution No. 2025-69 approving Fiscal Year 2025-2029 Consolidated Plan and Fiscal Year 2025-2026 Annual Action Plan for the use of CDBG and HOME funds, conditionally committing funds to projects, authorized the Director of Community Development to execute contracts as appropriat e and approved the submittal of the Fiscal Year 2025 -2029 Consolidated Plan and the Fiscal Year 2025 -2026 Annual Action Plan to HUD.
BACKGROUND
HOME is a federal block grant program that provides funding to states and cities to be used exclusively for affordable housing activities to benefit low -income households. Funds for HOME are appropriated annually to HUD, which in turn distributes funding to states and cities. The City of Escondido is considered an entitlement jurisdiction and receives an annual all ocation from HUD for the operations of its HOME program. The funding is determined by a formula, based on population, age of rental units in the city, and poverty levels. The HOME formula prioritizes jurisdictions with high poverty rates and inadequate ren tal housing stock.
As a recipient of HOME federal funds, the City is required to submit a five -year Consolidated Plan, an Annual Action Plan that is required for each year of the Consolidated Plan period, and a Consolidated Annual Performance and Evaluation Report (“CAPER”) to monitor its progres s, outcomes, and expenditures for the program year. The Consolidated Plan and Action Plan identify the community’s housing needs and describes in detail how HOME and other HUD block grant funds will be used to meet those needs. Cities can administer HOME f unds themselves, or they can designate public agencies or nonprofit organizations to administer all or part of the HOME program on their behalf.
HOME funds may only be used for affordable housing activities, including:
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New Construction of Owner-Occupied and Rental Housing: Building new affordable housing units for both homeownership and rental.
Rehabilitation of Owner -Occupied and Rental Housing: Repairing and upgrading existing housing units.
Tenant-Based Rental Assis tance (“TBRA”): Providing direct rental assistance to low -income individuals and families.
Assistance to Homebuyers: Supporting homeownership through down payment assistance, closing costs, etc.
Within these categories, HOME funds may be used to pay the following eligible costs, as grants or as loans:
• Development and Rehabilitation hard costs: costs associated with the construction and rehabilitation, including cost of demolition, utility connections, site improvements, and multifamily community facilities.
• Acquisition costs: purchase costs of real property, including down payment assistance to homebuyers.
• Related soft costs: costs such as professional planning services, including for environmental review or other environmental studies; associat ed financing and development fees, including impact fees, environmental review fees, legal fees, private appraisal fees, and other lender - required third-party reporting fees; filing fees for zoning or planning review and approval; and information services such as affirmative marketing and fair housing information. • Relocation costs: relocation payments and other relocation assistance to persons displaced by the project.
• Eligible TBRA costs: rental assistance, security deposits, and utility deposits. • Lead-based paint hazards: the evaluation and reduction of lead-based paint hazards. • Administrative costs: up to 10 percent of a city’s HOME funds may be used for any administrative and planning costs, including salaries of persons engaged in administeri ng and managing HOME activities.
• CHDO costs: up to 5 percent of a City’s HOME funds may be used for the operating expenses of CHDOs.
HUD provides a very specific list of eligible activities. If a project or expense is not included in this list, it is most likely an ineligible expense.
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Community Housing Development Organizations (“CHDOs”):
The HOME statute requires each jurisdiction to reserve at least 15 percent of its HOME funding for Community Housing Development Organizations.
CHDOs are private nonprofit, community-based organizations that focus on developing affordable housing, e.g., Habitat for Humanity and Community Housing Works. To qualify for designation as a CHDO, the organization must meet certain requirements pertaining to their legal status, organizational structure, and capacity and experience. Statutorily, a CHDO must have the provision of decent and affordable housing as one of its purposes, must maintain accountability to low -income community residents and beneficiaries, have a demonstrated capacity to carry out affordable housing projects, and have a history of serving the local communities to be assisted with federal grants.
HOME-ARP
The American Rescue Plan Act of 2021 allocated $5 billion to the HOME program in response to the COVID- 19 pandemic for homelessness assistance and supportive services.
There are some differences between HOME-ARP and the regular HOME program. HOME-ARP funds must primarily benefit qualifying individuals and families who are homeless, at risk of homelessness, or in other vulnerable populations, such as those fleeing domestic violence.
HOME-ARP funds may be used for:
Affordable Rental Housing Development
Rental Assistance
Acquisition or construction of Non-Congregate Shelters Supportive Services, e.g., financial literacy classes Homeowner assistance and related services are not eligible HOME -ARP activities, but costs associated with pre-purchase homebuying counseling, education, and outreach are eligible under HOME-ARP.
Program Oversight
Oversight of the HOME program involves monitoring both processes and outcomes. This includes ensuring that HOME funds are committed and expended according to regulation and timelines specified in the statute and ensuring that investments of program funds a chieve the program’s goal, namely, providing housing that is affordable to low-income households.
Jurisdictions must also comply with record -keeping requirements to ensure that they are using funds appropriately. Before disbursing any HOME funds to an ent ity, a Jurisdiction must enter into a written agreement with that entity. These written agreements must include language ensuring compliance with all HOME program requirements.
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Additionally, jurisdictions must review the performance of subrecipients . This is done through on-site inspections of HOME -assisted projects , when a project is completed , and for HOME -assisted rental housing, throughout the affordability period. Assisted rental units must be inspected at least every three years and households receiving HOME-funded TBRA must be inspected annually.
In addition to physical inspections , the property owner must certify annually that the project and the HOME-assisted units meet affordability guidelines. The City’s affordable housing projects report this through a third-party software system called FOCUS. FOCUS tracks annual reporting and monitors affordability compliance of various federal and state programs, to ensure projects remain compliant over the lifecycle of the agreement.
FUNDING & ALLOCATIONS
HOME
The City currently has $4,473,255.66 available in HOME funds. The majority of this funding is set aside for affordable housing development , as it takes several years to accumulate enough resources to make a project appealing and financially viable for a developer.
Pursuant to statue, HOME funds expire nine years from the year they were awarded. HOME funds, not used within the nine-year timeframe are recaptured and returned to the Treasury. Below is a breakdown of the City’s HOME funds by year, expiration dates, and amount. 143
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Currently HOME is or is planned to fund the following programs:
First Time Homebuyer:
Eligible homebuyers may qualify for a low-interest loan limited to 5 percent of the purchase price that can be used toward a down payment and/or for closing costs. Repayment of the City’s loan is deferred until the home is sold, transferred, refinanced, additional liens are added to the property, or if the home is no longer used as the applicant’s principal residence. Loan amounts range from $3,000 to $25,000. There is no specific budgeted amount for this project. Loans are approved on a first come first served basis and are funded from the fund balance outlined in the chart above.
Senior Rental Subsidy: $72,000/30 Households
For eligible residents, this program provides subsidy payments of $200 per month, paid directly to an apartment or mobilehome park manager/owner, on a quarterly basis. Assistance is available on a first-come, first-served basis to eligible applicants.
Residents are eligible for this program if:
• They are at least 62 years old;
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• Their principal place of residence is within the City of Escondido; • Their apartment complex or mobilehome park manager agrees to participate in the subsidy program;
• They do not receive rental assistance under any federal housing assistance program (including Section 8 or HUD);
• They are on the Section 8 waiting list;
• Their assets, (such as bank accounts, stocks, bonds, etc.) do not exceed $25,000; • Their gross income meets the extremely low-income requirements (0–30% AMI).
RFP to Fund Long-term Affordable Rental Housing or First-time Homebuyer Opportunities:
The Housing and Neighborhood Services Division intends to release an RFP for the development of long-term affordable rental housing and/or first-time homebuyer opportunities. The RFP will make up to $4,000,000 of the HOME fund balance (FY 2017-2023) and $1,500,000 in HOME-ARP funding available to developers. Allocating this amount ensures we prevent the loss of expiring funds and maintains sufficient resources to continue to fund other programs.
HOME-ARP
The City currently has $2,262,839 in HOME-ARP funds. This funding allocation was approved by council Resolution No. 2023-32, on March 22, 2023, and set aside the following funding allocations. $1,500,000 (Rental Housing Development)
Creation of 15 affordable rental housing units for extremely low-income households (0–30% AMI) with a preference for Escondido residents who are experiencing homelessness. Every HOME-ARP unit must comply with the federal HOME program requirements. That includes long- term affordability restrictions, written leases, tenant protections, and capped rents at no more than thirty percent of household income.
$423,414 (Supportive Services)
Flexible funds to help at least 60 households. Services can include landlord incentives, deposit help, case management, tenant navigation, and other supports that help people remain housed.
These services are open to all qualifying populations under HUD rules, but priority will be given to Escondido residents.
$339,425 (Administration)
This is the statutory 15 percent cap for administration and planning.
This plan has been approved by the Council and accepted by HUD after going through the required public participation process. These funds have a federal expenditure deadline of September 30, 2030.
Funds not fully expended by that date will be recaptured.
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Substantial Amendments
If the Council would like to make any changes to any of the existing allocations mentioned above, a substantial amendment may be triggered. Per the City’s Citizen Participation Plan, included in the Five- Year Consolidated Plan, the City is required to amend its approved plan(s) whenever it makes one of the following decisions:
To carry out an activity not previously described in the Annual Plan using funds covered by the Consolidated Plan.
To substantially amend the purpose, scope, location, or beneficiaries of an activity. To substantially amend the allocation priorities or the method of distributing funds.
A substantial amendment is defined as the following:
An addition, modification, or elimination of a Consolidated Plan goal; An addition of a new activity not previously identified in the Annual Plan; or A change that affects the funding level of more than $25,000 for projects budgeted at $100,000 or less, or greater than 25 percent of projects budgeted at more than $100,000.
Substantial amendments must be authorized by the City Council. Minor changes and/or corrections may be made, so long as the changes do not constitute a substantial amendment and do not require public review or a public hearing.
If a substantial amendment is triggered the staff will return to council and follow the required process below.
Conduct the first of two necessary public hearings introducing the potential amendment; Provide a 30-day public comment period;
Conduct community outreach soliciting public feedback; Conduct the second public hearing to approve the new plan.
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STAFF REPORT
October 15, 2025
File Number 0680-70
SUBJECT
PL25-0282 – STAFF PRESENTATION ON ASSEMBLY BILL (AB) 130 AND SENATE BILL (SB) 131
DEPARTMENT
Development Service Department, Planning Division
RECOMMENDATION
Request the City Council receive a presentation on Assembly Bill (AB) 130 and Senate Bill (SB) 131 presentation. No action is required at this time except to provide direction to staff as appropriate.
Staff Recommendation: Receive and File (Development Services: Christopher W. McKinney, Deputy City Manager/ Interim Director of Development Services) Presenter: Sally Schifman, Principal Planner
ESSENTIAL SERVICE – Yes, Land Use/Development
COUNCIL PRIORITY – Encourage Housing Development
FISCAL ANALYSIS
This item is informational only. There are no direct fiscal implications associated with this presentation.
PREVIOUS ACTION
None
BACKGROUND
On June 30, 2025, Governor Newsom signed both Assembly Bill 130 and Senate Bill 131 which went into effect immediately. The intent of the legislation is to further address the State housing crisis by making it faster and easier to build homes.
Assembly Bill 130 is an extensive bill, affecting approximately 60 differe nt sections across six different State codes. Many of the revisions, deletions, or additions are non-consequential and involve aligning cross-code referencing or minor editorial changes. However, some changes are more substantive and amend regulations related to housing-project streamlining ; the California Environmental Quality Act (CEQA); the Affordable Housing on Faith & Higher Education Lands Act (i.e., SB 4) ; and the California 147
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Building Code . The presentation from staff will highlight su bstantive changes that may more readily impact the City of Escondido.
Senate Bill 131 is a companion bill to AB 130, with impacts primarily to CEQA regulations. It adds a “near- miss” streamlining option in which a project that would have be en exempt eligible under AB 130 but for one issue area, is limited to CEQA review of only that one issue area (i.e., narrows the focus of the environmental review). In addition, SB 131 changes include an exemption for rezoning actions required by certified Housing Elements and tied to an adopted “schedule of actions ”; expands CEQA exemptions to cover essential community facilities such as childcare/daycare centers , Federally Qualified Health Centers and rural health clinics, nonprofit food banks and pantries, and qualified advanced manufacturing facilities; and clarifies what must be included in the administrative record.
The passage of these bills will require updates to Planning Division application materials, additions to standard conditions of approval, and minor updates to the Escondido Zoning Code. In addition, a s Lead Agency, the City is responsible for applying appropriate CEQA determination s, which may entail more exemptions moving forward , and will lik ely result in more narrowly -defined CEQA documents when further analysis is required for a housing project. Ultimately, this may lead to more streamlined CEQA review for housing-related projects and therefore, faster processing timelines. 148
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STAFF REPORT
October 15, 2025
File Number 0320-30
SUBJECT
ADOPTION OF THE UPDATED 2025 COMMUNITY WILDFIRE PREVENTION PLAN (CWPP)
DEPARTMENT
Fire
RECOMMENDATION
Request the City Council adopt Resolution No. 20 25-112 adopting the 2025 Co mmunity Wildfire Protection Plan.
Staff Recommendation: Approval (Fire Department: John Tenger, Fire Chief) Presenter: Tyler Batson, Deputy Fire Chief
ESSENTIAL SERVICE – Yes, internal requirement in support of Fire/EMS Services COUNCIL PRIORITY –
FISCAL ANALYSIS
There is no direct fiscal impact associated with the adoption of the Community Wildfire Prevention Plan (“CWPP”). However, an adopted CWPP is a prerequisite for many wildfire mitigation grants and may improve the City of Escondido competitiveness for funding opportunities, including CAL FIRE ’s Wildfire Prevention Grants and the Fire Risk Reduction Community List (“FRRCL”).
PREVIOUS ACTION
In 2010, Escondido Fire partnered with Anchor Point Group to draft the initial CWPP. The plan was formally adopted by City Council in 2011. The CWPP is intended to be a “living” document however, regular updates are crucial to account for changes in landscape, infrastructure, and community population. It is recommended by the State to update this report every 3-5 years.
BACKGROUND
The CWPP is a locally developed wildfire risk reduction plan authorized under the federal Healthy Forests Restoration Act of 2003. CWPPs identify wildfire hazards, assess risks to people and property, and prioritize 149
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strategic mitigation actions. These plans are critical for coordinating wildfire preparedness, enhancing community resilience, and accessing state and federal grant funding.
The City of Escondid o, which serves the City of Escondido and the Rincon del Diablo Municipal Water District, initiated a CWPP update in August 2025 in collaboration with SWCA Environmental Consultants, the Escondido Fire Department, Emergency Services, and local stakeholders. The planning process included field assessments, GIS -based risk analysis, community engagement, and interagency coordination.
The 2025 CWPP includes:
A quantitative wildfire hazard and risk assessment
Identification of vulnerable neighborhoods and infrastructure Prioritized list of mitigation projects (e.g., fuel breaks, defensible space initiatives, community outreach)
Structural ignitability reduction recommendations
Alignment with state and regional wildfire planning best practices The draft CWPP was made available for public review and comment from August 18, 2025 to September 17, 2025. Other outreach included a public survey , a booth and information at National Night Out on August 5, 2025, community meetings on September 9, 2025 and September 15, 2025 , and stakeholder coordination throughout the process to ensure the plan reflects local needs and priorities.
If adopted, the CWP P will serve as a guiding document for wildfire mitigation, grant applications, and program implementation. Staff will continue to work with local and regional partners to pursue funding and implement the plan’s recommendations.
RESOLUTIONS
a) Resolution No. 2025-112
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RESOLUTION NO. 2025-112
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ESCONDIDO, CALIFORNIA , ADOPTING THE 2025
COMMUNITY WILDFIRE PROTECTION PLAN (CWPP)
WHEREAS, the Healthy Forests Restoration Act of 2003 ( “HFRA”) authorizes communities to develop Community Wildfire Protection Plans ( “CWPPs”) to identify local wildfire risks and prioritize mitigation strategies; and
WHEREAS, the City of Escondido collaborated with key stakeholders, local fire officials, regional partners, and the public to prepare the 2025 CWPP in accordance with HFRA and CAL FIRE guidance; and WHEREAS, the updated 2025 CWPP includes a wildfire hazard and risk assessment, prioritized mitigation actions, community education strategies, and recommendations for reducing structural ignitability; and
WHEREAS, adoption of the CWPP enhances the City's eligibility for wild fire mitigation funding opportunities and supports long-term community resilience; and WHEREAS, the draft CWPP was made available for public review and comment prior to finalization.
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 adopts the 2025 Community Wildfire Protection Plan as the City's official wildfire mitigation and community resilience plan. 151
Item15.
STAFF REPORT
October 15, 2025
File Number 0430-30; 0430-80
SUBJECT
FISCAL YEAR 2024/25 FINANCIAL STATUS REPORT AND BUDGET ADJUSTMENT REQUEST
DEPARTMENT
Finance
RECOMMENDATION
Request the City Council (1) receive and file the financial report for FY2024/25 (Attachment “1”) and (2) adopt Budget Adjustments (Attachment “2”) to amend the Fiscal Year 2025/26 operating budget.
Staff Recommendation: Approval (Finance: Christina Holmes, Director of Finance) Presenter: Christina Holmes, Director of Finance
ESSENTIAL SERVICE – Yes, Police Services; Fire/EMS Services; Keep City Clean for Public Health and Safety; Land Use/Development; Clean Water; Sewer
COUNCIL PRIORITY – Eliminate Structural Deficit
FISCAL ANALYSIS
See Below.
PREVIOUS ACTION
On May 14, 2025, the City Council received the Fiscal Year 2024/25 third quarter financial report.
BACKGROUND
The City Council Budget and Financial Policies require that the City present quarterly financial reports each fiscal year. The purpose of this report is to provide City Council and the public a financial update of selected funds of the City. This report provides the City Council with the analysis of unaudited revenues and expenditures for Fiscal Year 202 4/25 in comparison to the adopted Fiscal Year 2024/25 budget for the General Fund. The financial highlights are summarized below.
152
Item16.
Operating revenue has not kept pace with the growing costs of providing City services, and as a result the General Fund long-term financial plan has projected annual deficits creating a structural budget deficit .
To address this projected shortfall, the City has maintained a hardline on expenditures and staff are continuously seeking measures that ensu re efficiency, while enhancing basic operations . Revenue - generating opportunities have also been explored. In addition, s ince the Great Recession, the City has controlled costs by annually deferring maintenance and capital project costs . Despite all of these measures, and the City’s efforts to fund projects with grants and other sources of one -time funds, it has not been enough to meet growing costs and demand for services.
In the prior fiscal year, the FY2023/24 General Fund operating budget started with a net operating deficit of $11,295,84. Staff recommendations to close the budget deficit included a combination of using reserve balances as well as deferring major purchases to future years; however, this did not address the structural budget deficit which was projected to be about $11.3 million in FY2024/25. To address the predicted structural budget gap for the upcoming fiscal year, Departments were directed to submit their FY2024/25 General Fund operating budget at the same level as the prior year, FY2023/24, while prioritizing the City Council’s Essential Services and Council Priorities. As a result of Departments minimizing their budgeted expenses and the additional actions described below, the proposed FY2024 /25 General Fund Operating Budget is closed without the use of Reserve Funds:
Library Management Agreement – ($3,033,490). On January 31, 2024 City Council approved the use of American Rescue Plan Act Funds for the FY2024/25 and FY2025/26 Management Agreement with LS&S.
California Center for the Arts, Escondido (CCAE) Management Agreement – ($1,837,330). On January 31, 2024 City Council approved the use of American Rescue Plan Act Funds for the FY2024/25 Management Agreement with the Foundation and Utilities. Humane Society Contract – ($857,570). The City has a contract with the San Diego Human Society for animal control services, the FY2024/25 operating budget included resources needed to fund the contract through its expiration date of December 31, 2024. Elimination of 10 Full-Time Vacation Positions – ($915,000). The FY2024/25 operating budget also includes the elimination of 10 full-time vacant positions from various departments which reduced employee service expenses by $915,000
At the end of t he fiscal year, General Fund revenues have exceeded the budget amount by $4.8 million and expenditures are over the budget by $3.0 million, shown in the table below.
FY2024/25
ADOPTED BUDGET
FY2024/25
AMENDED BUDGET
ACTUAL RESULTS
JUNE 2025 %
Total Operating Revenue $133,065,360 $135,525,410 $140,339,960 104% Total Operating Expenditures (133,524,830) (137,136,960) (140,120,460) 102% Operating Transfers 600,440 600,440 600,440 -
Net Operating Surplus / (Deficit) $140,970 ($1,011,110) $819,940 - 153
Item16.
Recommended Budget Adjustments:
Commitments (carryovers) of $720,795. Commitments are obligations incurred in the FY202 4/25 operating budget that were not completed by the end of the fiscal year and, as a result, the remaining obligated amounts will be expended in the new fiscal year. All items have been obligated under a purchase order, the result of a FY2024/25 budget adjustment, or specifically referenced in the FY2024/25 adopted line-item detail budget. Items totaling $720,795 are as follows:
For the Fire Department, an order for turnout gear was officially placed on June 9, 2025. Turnout gear takes a few months to manufacturer and will be received and billed in FY26. The GEMT IGT Program includes a 10% annual administrative fee, billed by the Centers for Medicare and Medicaid Services. The FY25 fee was not billed.
For Development Services, a contract with Matrix is in place for ongoing consulting services. The Avolve software maintenance contract has not yet been billed, and traffic invoice from STC were not received before the yearend close.
Fire Department - $1,033,540. In the FY2025/26 Measure I Local District Tax Fund, City Council approved the purchase of 3 Sutphen Pumpers; however, the sales tax was not included in the initial estimate so an additional $341,040 is needed. Two additional vehicles are also requested totaling $405,000 for the new Chief positions added in the FY2025/26 operating budget. Funds of $180,000 is requested to replace six CPR devices past their useful life. And an additional $107,500 is requested for operational needs offset by the reimbursements from CalOES for fire deployments.
Police Department - $218,040. In FY2020/21 the City Council approved a budget adjustment of $1,500,000 to purchase a Command Vehicle to replace t he City’s current unified emergency operations vehicle was purchased in 2010 and outfitted as a command and em ergency operations vehicle for Fire and Police incidents. The new vehicle has been completed, an additional $218,040 is needed to cover taxes and fees.
Park Rangers - $190,000. In the FY2025/26 Measure I Local District Tax Fund, City Council approved the addition of eight full -time park rangers. Additional vehicles and equipment are needed to support the staff, three Toyota Tacoma trucks and one Polaris UTV for Kit Carson Park totaling $190,000.
City Clerk’s Office - $54,400. The following is recommended for the City’ Clerks Office:
Laserfiche Document Management System , Additional User Licenses (200) - $13,725 One-time licensing expansion . The City of Escondido commenced implementation of the Laserfiche enterprise document management system in October 2024, initially procuring 50 user licenses to support the phased deployment strategy encompassing data migration, staff training, and system integration. Following successful pilot implementation, operational demands have demonstrated the need for comprehensive organizational access to maximize system utilization and ensure equitable service delivery across all municipal departments. Significant adoption requests have been received from critical service areas including Utilitie s and Development Services, reflecting 154
Item16.
the system's strategic value in enhancing operational efficiency and citizen service delivery. The procurement of 200 additional user licenses will enable full organizational deployment, ensuring all City personnel ha ve appropriate access to digital resources necessary for effective municipal operations. This one -time investment establishes the foundation for the upgraded annual licensing tier and represents a critical step toward achieving the City's digital transform ation objectives.
Records Management and Vault Storage Infrastructure - $9,300 ($6,300 one -time implementation; $3,000 annual service fee ). The one -time implementation cost of $6,300 enables deployment of advanced records management functionality essenti al for regulatory compliance and operational excellence. This capability integrates the City's comprehensive records retention schedule directly into the Laserfiche platform, ensuring adherence to municipal governance standards, legal requirements, and best practices in public records management. This enhancement facilitates seamless integration with complementary business systems, including electronic signature platforms and departmental applications, creating a unified digital ecosystem that supports efficient document lifecycle management. The integration capabilities will eliminate redundant processes, reduce administrative burden, and enhance cross -departmental collaboration while maintaining strict compliance protocols. The annual vault storage service fee of $3,000 provides enterprise -grade secure storage infrastructure with advanced encryption, audit trails, and disaster recovery capabilities. This trusted storage solution meets stringent security standards required for sensitive municipal documents and ensures long -term accessibility, integrity, and compliance of critical City records in accordance with public sector governance requirements.
System Tier Upgrade and Renewal - $10,230. Differential investment above original budget allocation. Exceptional departmental adoption and accelerated digitization initiatives have resulted in storage requirements exceeding initial projections, necessitating an infrastructure upgrade to support continued operational growth. The tier enhancement provides expand ed storage capacity, increased user access capabilities, and incorporates premium security features essential for municipal operations. This differential investment of $10,231.41 represents the variance between the originally allocated $30,000 budget and the enhanced service tier required to support current operational demands. The upgrade reflects the successful organizational adoption of digital document management practices and positions the City to accommodate future growth while maintaining optimal system performance and service delivery standards.
DocuSign Electronic Signature Platform - $21,127. Implementation and annual licensing investment. The city proposes to implement DocuSign as the primary electronic signature solution, replacing the existi ng ContractSafe platform to address persistent operational challenges and enhance service delivery capabilities. Since deploying ContractSafe in June 2023, the City has encountered substantial technical deficiencies including notification system failures, platform instability, and performance issues that have compromised operational efficiency and 155
Item16.
stakeholder satisfaction. DocuSign represents an industry-leading solution with proven reliability, comprehensive security protocols, and advanced integration capabilities that align with the City's digital infrastructure strategy. The platform's native integration with Laserfiche will create a seamless document workflow environment, eliminating manual processes and reducing administrative overhead while ensuring compliance with municipal contracting requirements.
This investment encompasses both implementation services and annual licensing, providing immediate operational improvements through enhanced system reliability, improved user experience, and streamlined contract processing workflows. The migration to DocuSign will strengthen the City's digital service delivery capabilities and support more efficient municipal operations while ensuring robust security and compliance standards for all electronic signature transactions.
Economic Development - $58,600. A budget adjustment for $23,600 is requested for a Visit Escondido Community Calendar platform which will be used for posting local events and gathering community data with built-in reporting and analytics. Secondly, $35,000 is requested for a Visit Escondido social media consultant to provide Ongoing social media management and content creation to promote Visit Escondido, boost business visibility, and increase awareness of local events.
Library Infrastructure Project - $815,000. As part of the library infrastructure project, additional funds are needed to complete the replacement of windows at an estimated cost of $815,000. These costs are not included in the Library Infrastructure Grant.
Development S ervices - $798,330. The following budget amendments are recommended for the Development Services Department:
On August 13, 2025, City Council approved a contract amendment of $500,000 with Interwest for on-call building plan review and inspection services . A budget adjustment is needed for this amendment.
The Department was allocated several new positions as part of the FY 2026 budget, of which, two positions require vehicles on a daily basis for inspections. The department is requesting the addition of two new pick -up trucks to the Department fleet at a cost of $140,000 inclusive of outfitting.
Salary and Benefit expenses for the vacant Director of Development Services position was not included in the FY2025/26 Operating Budget. This position has been filled, funding for the remainder of the fiscal year for the salary and benefits are recommended.
156
Item16.
ATTACHMENTS
a) Attachment “1” – FY2024/25 Fiscal Year Financial Report b) Attachment “2” – Budget Adjustment Request
157
Item16.
1 OVERVIEW
This report summarizes the City’s financial position through the fiscal year ending June 30, 2025 for the General Fund.
The purpose of the report is to provide City Council, City Management, and the Escondido community an update on the City’s fiscal status based on the most recent financial information available. The revenue projections and budget information include adjustments for encumbrances, carryovers, and any other supplemental appropriations approved by the City Council as of June 30, 2025.
This report is for internal use only. The figures presented here are unaudited and have not been prepared in accordance with Generally Accepted Accounting principles (GAAP).
GENERAL FUND
Operating revenue has not kept pace with the growing costs of providing City services since the Great Recession, and as a result, the General Fund long -term financial plan has projected annual deficits creating a structural budget deficit.
To address the predicted structural budget gap for the FY2024/25 fiscal year, Departments were directed to submit their General Fund operating budget at the same level as the prior ye ar, FY2023/24, while prioritizing the City Council’s Essential Services and Council Priorities. As a result of Departments minimizing their budgeted expenses and the additional actions described below, the proposed FY2024/25 General Fund Operating Budget is closed without the use of Reserve Funds:
Library Management Agreement – ($3,033,490). On January 31, 2024 City Council approved the use of American Rescue Plan Act Funds for the FY2024/25 and FY2025/26 Management Agreement with LS&S. California Center for the Arts, Escondido (CCAE) Management Agreement – ($1,837,330). On January 31, 2024 City Council approved the use of American Rescue Plan Act Funds for the FY2024/25 Management Agreement with the Foundation and Utilities.
Humane Society Contract – ($857,570). The City has a contract with the San Diego Human Society for animal control services, the FY2024/25 operating budget include d resources needed to fund the contract through its expiration date of December 31, 2024.
Elimination of 10 Full-Time Vacation Positions – ($915,000). The FY2024/25 operating budget also includes the elimination of 10 full-time vacant positions from various departments which reduced employee service expenses by $915,000
The initial projected FY2024/25 General Fund revenue estimate is $ 132.9 million, estimated to increase $ 5.0 million or
3.9% over the FY202 3/24 amended revenue projection. On July 10, 2024 City Council adopted an updated User Fee schedule which moved most fees to full cost recovery, increasing projected General Fund revenue by $2,601,020.
The total adopted FY2024/25 General Fund Operating Budget is $134.6 million, an increase of approximately $6.4 million or 5.0% compared to the FY2023/24 Operating Budget.
At the end of the fiscal year, General Fund revenues have exceeded the budget amount by $4.8 million and expenditures are over the budget by $3.0 million, shown in the table below.
Attachment "1"
158
Item16.
City of Escondido Fiscal Year 2024/25 Financial Report
2 General Fund
Comparison of Projected FY2024/25 Operating Budget to Actuals
FY2024/25
ADOPTED
BUDGET
FY2024/25
AMENDED
BUDGET
ACTUAL
RESULTS
JUNE 2025
OVER /
(UNDER)
AMENDED
BUDGET
Total Operating Revenue $133,065,360 $135,525,410 $140,339,960 $4,814,550 Total Operating Expenditures (133,524,830) (137,136,960) (140,120,460) 2,983,500 Operating Transfers 600,440 600,440 600,440 -
$140,970 ($1,011,110) $819,940
GENERAL FUND REVENUE
The table below compares actual results for General Fund operating revenue as of June 2025 to June 2024.
FY2024/25
AMENDED
BUDGET
ACTUAL
RESULTS
JUNE 2025
ACTUAL
RESULTS
JUNE 2024
Prior Year
vs. Current
Year
Sales Tax $47,463,500 46,592,860 $45,485,940 $1,106,920 Property Tax 38,249,300 38,851,010 37,314,520 1,536,490 Other Taxes 19,579,850 17,472,750 17,758,110 (285,360) Charges for Services 17,800,080 19,399,690 17,391,030 2,008,660 Intergovernmental 4,164,000 6,209,340 4,857,230 1,352,110 Fines and Forfeitures 878,700 772,870 693,270 79,600
Permits and Licenses 2,255,630 5,089,180 2,176,300 2,912,880 Rental Income 4,030,980 4,289,210 4,224,150 65,060
Investment Income 814,000 1,389,080 2,025,140 (636,060) Other Revenue 289,370 273,970 319,180 (45,210)
TOTAL OPERATING REVENUE $135,525,410 $140,339,960 $132,244,870 $8,095,090
$45.5
$37.3
$17.8 $17.4
$14.3
$46.6
$38.9
$17.5
$19.4 $18.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
$50.0
Sales Tax Property Tax Other Taxes Charges for Services All Other Revenue
GENERAL FUND REVENUE -
CURRENT YEAR VS. PRIOR ACTUALS
(IN MILLIONS)
FY 2024 FY 2025
Attachment "1"
159
Item16.
City of Escondido Fiscal Year 2024/25 Financial Report
3 Sales Tax (33% of Total General Fund Revenue): $46.6 million The City works closely with its sales tax consultants
in projecting sales tax revenue. The forecast for
FY2024/25 was provided by AvenuInsights and
projected a decline of about 4% compared to
FY2023/24. There were indicators that a mild
recession in FY2024/25 was possible but
continued unemployment and tight labor markets
indicated that a severe downturn is unlikely.
Actual sales tax receipts increased by $1,106,92
compared to the prior fiscal year; however, are
under the amount budgeted by ($870,642).
Additional analysis is provided by HdL Companies:
General consumer goods experienced meager proceeds at family apparel and specialty stores as consumers limited their purchases. Building-construction profits were weak, as building materials and contractors saw less demand for their services from commercial investors. Fuel -service stations felt shrinking returns at the pumps as increase fuel supply stabilizes, while advantages to consumers, is challenging for sales tax revenue due to the declining demand. The auto- transportation category enjoyed modest revenues from new car dealers as businesses provided consumers incentives to move vehicles off their lots to make room for newer models. The restaurants -hotels group had positive gross receipts at casual dining and quick -service establishments primarily due to higher menu prices businesses implemented.
Furthermore, the business-industry group saw promising profits from garden/ agricultural supplies during this period.
Property Tax (28% of Total General Fund Revenue): $38.8 million Property Tax revenue increased by $ 1,536,490 or
about 4.3% compared to this time in prior year. The
property tax that the County collects is based on
1% of the total assessed value of a property and
Escondido receives a percentage of the 1%. Under
Proposition 13, annual changes in the assessed
value are capped at 2%, but property value
reassessments occur with changes in ownership
Overall property tax revenue increased by 4.3% or
$1.6 million. Elevated prices and borrowing costs
continue to suppress market activity. Statewide
single-family home sales declined 7.4% year-over-
year in May 2025, while the median s ale price
increased 0.1%
21.0%
$7.7M
12.6%
$5.6M (5.6%)
($2.8M) (3.4%)
($1.6M)
2.4%
$1.1M
$30.0
$32.0
$34.0
$36.0
$38.0
$40.0
$42.0
$44.0
$46.0
$48.0
$50.0
2021 2022 2023 2024 2025
Total $44.3 $49.9 $47.1 $45.5 $46.6
6.8%
$2.0M
4.8%
$1.5M
6.7%
$2.2M
6.9%
$2.4M
4.3%
$1.6M
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
2021 2022 2023 2024 2025
Total $31.2 $32.7 $34.9 $37.3 $38.9
Attachment "1"
160
Item16.
City of Escondido Fiscal Year 2024/25 Financial Report
4 Other Taxes (12% of Total General Fund Revenue): $17.5million Other Taxes include franchise fee revenues, transient occupancy tax, and business license revenue and combined have decreased by ($285,360) compared to the prior year.
Franchise Fees
The City collects franchise fee revenues from San
Diego Gas and Electric (SDG&E), cable companies
conducting business within City limits, and
Escondido Disposal Incorporated (EDI).
Franchise Fees from Cox declined by $164,246,
from AT&T/DirecTV declined by $41,755, and fees
from SDG&E declined by $425,266. These
declines were offset by a 10% increase, $360,000,
in franchise fees from EDI. Overall r evenues
received from franchise agreements decreased by
$285,360 from the prior fiscal year.
Transient Occupancy Tax
Transient occupancy tax, also known as hotel tax,
increased by $208,959 compared to the prior year.
The tourism industry was impacted significantly as
a result of the closures, and many forecasted its
recovery would take much longer than it has.
Between FY2021/22 and FY2022/23, transient
occupancy tax receipts increased by 49% from the
pre-pandemic levels in March 2020. It is expected
that those receipts will remain flat going forward as
the activity stabilizes in the industry.
Business License Revenue
All entities doing business in the City are required
to have a valid business license. The business
license tax is calculated based on annual gross
receipts. Business license revenue from the 2025
calendar year is based on 2024 gross receipts.
Business license revenues decreased by $182,857
compared to the prior fiscal year. Revenue
collected in the third quarter decreased $88,678
from the same period in 2024. The higher revenue
in 2024 was due to the collection of late fees and
penalties from delinquen t accounts, as well as an
increase in new business applications.
In July 2024, the City Council approved a contract with HdL to provide business license management, compliance, and collection services. The new online system successfully went live in Ju ne 2025, and renewal letters from May and June were processed at that time. Program start -up costs of $57,473 negatively impacted June revenue. In addition to processing the renewals, HdL will also be performing compliance services to ensure all businesses in the city have a valid business license
4.2%
$0.3M
28.4%
$2.1M
28.4%
$2.7M
(18.0%)
($2.2M)
(2.0%)
($0.2M)
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
2021 2022 2023 2024 2025
Total $7.4 $9.5 $12.2 $10.0 $9.8
0%
$0M
47.1%
$0.8M
4.0%
$0.1M (7.7%)
($0.2M)
8.3%
$0.2M
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
2021 2022 2023 2024 2025
Total $1.7 $2.5 $2.6 $2.4 $2.6
13.7%
$0.3M
(4.8%)
($0.1M)
5.0%
$0.1M
0%
$0M
(9.5%)
($0.2M)
$1.8
$1.9
$1.9
$2.0
$2.0
$2.1
$2.1
$2.2
2021 2022 2023 2024 2025
Total $2.1 $2.0 $2.1 $2.1 $1.9
Attachment "1"
161
Item16.
City of Escondido Fiscal Year 2024/25 Financial Report
5 Charges for Services (14% of Total General Fund Revenue): $19.4 million Charges for Services include paramedic fees, Community Services fees for recreational and community activities, and charges for development related services, which include Engineering and Planning fees.
In July 2024 the City Council approved a User Fee
schedule that set all direct benefit user fees to
100% full cost recovery effective September 2024.
Direct Benefit Fees include Building, P lanning,
Engineering, Development Technology, Long -
Range Planning, Fire Prevention, and Facility
Rentals. Recreation program fees were moved to
full cost recovery or the top of the market. If there
is no comparator for a specific fee, the fee was
increased by 10% to step closer to full cost
recovery.
The adoption to this fee schedule increased
Development Services revenue by $505,000 or
10.0% from the prior fiscal year and Community
Services program revenue increased $47,280 or
3% from the prior fiscal year.
The city is receiving new revenue due to the Ground Emergency Medical Transportation Program implemented at the end of FY2023 that utilizes Federal funding to supplement the ambulance billing revenue received for medical transports.
As a result of this new program, revenue increased by $1.6 million this fiscal year.
Intergovernmental (4% of Total General Fund Revenue): $6.2 million Intergovernmental revenue includes the Rincon fire services agreement, state mandated cost claims, various grants, and revenue received from the fire mutual aid reimbursements.
Overall revenue has increased $1.4 million
compared to the prior year.
The City’s Fire Department staff can be deployed to
assist other State agencies with responses to fires
and other incidents . The California Office of
Emergency Services reimburses the City for the
time and resources of the staff deployed. As of
June 2025, reimbursements of $1,411,532 have
been recorded compared to just over $245,000 in
the prior fiscal year.
Permits and Licenses (4% of Total General
Fund Revenue): $5.1 million
Revenue generated from permits and licenses
increased by $ 2,912,880 compared to fiscal year
2023/24. In July 2024 the City Council approved a
User Fee schedule that set all direct benefit user
fees to 100% full cost recovery, including Building
Permit Fees. Construction and development
activity also continues driving building permit
revenue compared to previous fiscal years.
(6.0%)
($0.7M)
8.3%
$0.9M
28.0%
$3.3M
15.2%
$2.3M
11.5%
$2.0M
$-
$5.0
$10.0
$15.0
$20.0
$25.0
2021 2022 2023 2024 2025
Total $10.9 $11.8 $15.1 $17.4 $19.4
166.7%
$1.5M (8.3%)
($0.2M) (9.1%)
($0.2M)
10.0%
$0.2M
131.8%
$2.9M
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
2021 2022 2023 2024 2025
Total $2.4 $2.2 $2.0 $2.2 $5.1
21.4%
$0.9M
(3.9%)
($0.2M)
0%
$0M
(6.1%)
($0.3M)
34.8%
$1.4M
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
2021 2022 2023 2024 2025
Total $5.1 $4.9 $4.9 $4.9 $6.2
Attachment "1"
162
Item16.
City of Escondido Fiscal Year 2024/25 Financial Report
6 Fines & Forfeitures ( 1% of Total General
Fund Revenue): $772,870
Fines & Forfeitures represent fees collected for
vehicle code fines, parking ticket fines, other court
fines, code enforcement citations, and impound
fees. Over all revenue has increased by $ 79,600
compared to the prior fiscal year.
Rental Income ( 3% of Total General Fund
Revenue): $4.3 million
The City receives lease and rental income from
City owned properties , shared revenue with the
City of San Diego for activity at the Vineyard Golf
Course, and small cell tower lease revenue .
Overall revenue has increased by $ 65,060
compared to the prior fiscal year primarily due to
increased receipts from the Vineyard Golf Course.
Investment and Other Revenues (1% of Total General Fund Revenue): $1,663,050 Investments and Other Revenue includes interest
earned from investing activities, and other
miscellaneous receipts and combined decreased by
$681,270 compared to the prior year.
(18.2%)
($0.2M)
0%
(11.1%)
($0.1M) (12.5%)
($0.1M)
14.3%
$0.1M
$-
$0.1
$0.2
$0.3
$0.4
$0.5
$0.6
$0.7
$0.8
$0.9
$1.0
2021 2022 2023 2024 2025
Total $0.9 $0.9 $0.8 $0.7 $0.8
7.9%
($0.3M)
(4.9%)
($0.2M)
0%
$0M
7.7%
$0.3M
2.4%
$0.1M
$3.7
$3.8
$3.9
$4.0
$4.1
$4.2
$4.3
$4.4
2021 2022 2023 2024 2025
Total $4.1 $3.9 $3.9 $4.2 $4.3
(25.0%)
($0.1M)
33.3%
$0.1M
175%
$0.7M
36.4%
$0.4M (6.7%)
($0.1M)
$-
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
2021 2022 2023 2024 2025
Total $0.3 $0.4 $1.1 $1.5 $1.4
Attachment "1"
163
Item16.
City of Escondido Fiscal Year 2024/25 Financial Report
7 GENERAL FUND OPERATING EXPENDITURES
The total adopted FY2024/25 General Fund Operating Budget is $134.6 million, an increase of approximately $6.4 million or 5.0% compared to the FY202 3/24 Operating Budget. In order to address an $11 million budget deficit, Library Management Services and California Center for the Arts Management Services are funded by American Rescue Plan Act, the contract with the Humane Society was funded through December, and the City eliminated 10 full-time positions.
The following table includes cumulative expenditure comparisons for General Fund departments as of June 2025.
FY2024/25
AMENDED
BUDGET
ACTUAL
RESULTS
JUNE 2025
Over /
(Under)
Budget
% Of
Budget
General Government Services $8,056,630 $7,796,990 ($259,639) 97% Community Services 6,811,600 6,517,620 (293,982) 96%
Development Services 9,413,880 8,545,620 (868,260) 98%
Public Works 13,938,230 15,289,620 1,351,392 110%
Police 60,180,500 60,959,050 778,547 101%
Fire 36,017,840 37,807,540 1,789,703 105%
California Center for the Arts 1,282,180 1,287,480 5,300 100% Other Expenditures 2,036,100 1,916,540 (119,559) 94%
TOTAL OPERATING EXPENDITURES $137,136,960 $140,120,460 $2,983,503 102%
The city continues to be impacted by a competitive labor market, as a result of recurring vacant positions and long recruitment efforts there are expenditure savings in regular salary and benefits through June 2025. Overtime expenses exceed the budgeted amount by $4.2 million. However, the increase in overtime expenses was offset by savings in employee services due to vacant positions during the fiscal year.
FY2024/25
AMENDED
BUDGET
ACTUAL
RESULTS
JUNE 2025
Over /
(Under)
Budget
% Of
Budget
Regular Salaries $65,522,280 60,285,360 ($5,236,920) 92% Overtime 6,156,800 10,373,880 4,217,080 168
Benefits & Employee Overhead 44,623,900 43,836,230 (787,670) 98 SUBTOTAL EMPLOYEE SERVICES $116,302,980 $114,495,470 ($1,807,510) 98% Maintenance and Operations 21,778,560 24,183,710 2,405,150 111 Internal Service Charges 17,124,220 17,124,220 - 100
Allocations (17,468,800) (15,082,940) 2,385,860 86%
SUBTOTAL OPERATING EXPENDITURES $22,688,270 $26,224,990 $4,791,010 122% Historical Cost Savings Reduction (600,000) (600,000) - - TOTAL OPERATING EXPENDITURES $138,391,250 $139,559,510 $2,983,500 102%
Attachment "1"
164
Item16.
City of Escondido Fiscal Year 2024/25 Financial Report
8 The following tables show each department’s operating expenses through June 2025 compared to the amended budget for FY2024/25 as well as the list of Budget Adjustments approved this fiscal year:
GENERAL GOVERNMENT
SERVICES
FY2024/25
ADOPTED
BUDGET
BUDGET
ADJUSTMENTS
FY2024/25
AMENDED
BUDGET
ACTUAL
RESULTS
JUNE
2025
Over /
(Under)
Budget % Of
Budget
City Council $414,950 $25,000 $439,950 $375,015 ($64,935) 85% City Manager 1,799,630 156,760 1,958,390 1,776,518 (181,872) 90% City Attorney 170,550 51,360 221,910 172,673 (49,237) 78% City Clerk 642,520 - 642,520 607,634 (34,886) 95%
City Treasurer 180,110 - 180,110 185,202 5,092 113%
Finance 1,658,170 - 1,658,170 1,880,340 222,170 113%
Human Resources 717,430 - 717,430 626,415 (91,015) 94% Information Systems 1,471,640 - 1,471,640 1,458,034 (13,606) 99% Communications & Digital Media 729,810 36,700 766,510 715,160 (51,350) 93%
TOTAL GENERAL
GOVERNMENT $7,784,810 $271,820 $8,056,630 $7,796,991 ($259,639) 98% City Treasurer: Investment software costs exceeded the budget amount by $4,238 Finance: Wittman Paramedic Services provides ambulance billing services for the city. The fee for services is a percentage of revenue (4.5%) billed so as the ambulance revenue fees increase so do the fees for service. The amount exceeded the budgeted amount by $147,372 this fiscal year.
COMMUNITY SERVICES
FY2024/25
ADOPTED
BUDGET
BUDGET
ADJUSTMENTS
FY2024/25
AMENDED
BUDGET
ACTUAL
RESULTS
JUNE 2025
Over /
(Under)
Budget
% Of
Budget
Recreation $4,744,940 $ - $4,744,940 $4,502,737 ($242,203) 95% Main Library* 543,970 95,000 638,970 825,250 186,280 129% Older Adult Services 729,830 - 729,830 688,851 (40,979) 94% Senior Nutrition 697,860 - 697,860 500,780 (197,080) 72%
TOTAL COMMUNITY
SERVICES $6,716,600 $95,000 $6,811,600 $6,517,618 ($293,982) 96% *Library Management Services with LS&S are funded by American Rescue Plan Act Funds in FY2024/25 & FY2025/26. Expenses are for maintenance and internal service charges which are offset by reimbursements from LS&S.
DEVELOPMENT SERVICES
FY2024/25
ADOPTED
BUDGET
BUDGET
ADJUSTMENTS
FY2024/25
AMENDED
BUDGET
ACTUAL
RESULTS
JUNE 2025
Over /
(Under)
Budget
% Of
Budget
Planning $2,633,330 $472,500 $4,744,940 $2,733,156 ($372,674) 88% Building 2,005,690 73,640 2,079,330 1,697,211 (382,119) 82% Engineering 2,973,100 55,010 3,028,110 2,902,872 (125,239) 96% Code Compliance 1,140,820 59,790 1,200,610 1,212,382 11,772 101%
TOTAL DEVELOPMENT
SERVICES $8,752,940 $660,940 $9,413,880 $8,545,621 ($868,260) 98% Code Compliance: Expenses exceed the amount budgeted due to the contract with 4Leaf for professional services, partially offset by savings in employee services
Attachment "1"
165
Item16.
City of Escondido Fiscal Year 2024/25 Financial Report
9 PUBLIC WORKS
FY2024/25
ADOPTED
BUDGET
BUDGET
ADJUSTMENT
S
FY2024/25
AMENDED
BUDGET
ACTUAL
RESULTS
JUNE 2025
Over /
(Under)
Budget
% Of
Budge
t
Street Maintenance $9,280,510 $171,790 $9,452,300 $10,545,28 9 $1,092,98
9 112%
Park Maintenance 4,485,930 - 4,485,930 4,752,355 266,425 106% Radio Communications - - - (8,022) (8,022) 0%
TOTAL PUBLIC
WORKS
$13,736,44
0 $171,790 $13,938,230 $15,289,62
2 $1,351,39
2 110%
Street and Parks Maintenance: Overtime costs exceeded the amount budgeted by $188,570. Utility costs for SDG&E exceeded the amount budgeted by $285,235. In addition, the amount budgeted to programs and projects was updated during the fiscal year. Employee service costs of $89,100 was budgeted towards the CDBG Graffiti program which was not funded in FY2025. The amount of staff time budgeted to Storm Drain Maintenance and Permitted Channel Cleaning was decreased by Environmental Programs from $956,000 to $800,000. Streets Maintenance also covered several unanticipated expenses, including: Operation Harmony Grove: $80,000, Reidy Creek Golf Course Pond Clearing:
$75,000, Daley Ranch Bio Monitoring: $52,000
POLICE DEPARTMENT
FY2024/25
ADOPTED
BUDGET
BUDGET
ADJUSTMENTS
FY2024/25
AMENDED
BUDGET
ACTUAL
RESULTS
JUNE 2025
Over /
(Under)
Budget
% Of
Budget
Police Department $58,229,080 $1,951,420 $60,180,500 $60,959,047 $778,547 101% Historically as a cost savings measure in previous budget cycles, the Police Department has used savings in personnel costs to cover actual expenses of the police department maintenance and operations budget. As the Police Department vacant positions are filled and staffing levels increase, the cost savings in employee services will no longer cover the critical operation expenses. This was addressed in the FY2025/26 operating budget, Measure I funds are now contributing to the overall Police Department Budget.
FIRE DEPARTMENT
FY2024/25
ADOPTED
BUDGET
BUDGET
ADJUSTMENTS
FY2024/25
AMENDED
BUDGET
ACTUAL
RESULTS
JUNE 2025
Over /
(Under)
Budget
% Of
Budget
Fire Department $35,636,680 $381,160 $36,017,840 $37,752,746 $1,734,906 105% The Fire Department exceed the amount budgeted as a result of overtime expenses. CalOES reimburses the city for overtime expenses when firefighters are deployed to assist with fire events. In FY2025, $1,411,532 was received from CalOES for time and other equipment expenses.
CENTER FOR THE ARTS
FY2024/25
ADOPTED
BUDGET
BUDGET
ADJUSTMENTS
FY2024/25
AMENDED
BUDGET
ACTUAL
RESULTS
JUNE 2025
Over /
(Under)
Budget
% Of
Budget
California Center for the Arts* $1,282,180 $- $1,282,180 $1,287,480 $5,300 100% *Center for the Arts Management Services with the CCAE Foundation are funded by American Rescue Plan Act Funds in FY2024/25. Expenses are for maintenance and internal service charges , and $5,300 for a Steinway piano rebuild.
OTHER EXPENSES
FY2024/25
ADOPTED
BUDGET
BUDGET
ADJUSTMENTS
FY2024/25
AMENDED
BUDGET
ACTUAL
RESULTS
JUNE 2025
Over /
(Under)
Budget
% Of
Budget
Non-Departmental
Community Relations $1,956,100 $80,000 $2,036,100 $1,916,541 ($119,559) 94%
Attachment "1"
166
Item16.
City of Escondido Fiscal Year 2024/25 Financial Report
10 The following table is a list of General Fund budget amendments approved by City Council this fiscal year:
DEPARTMENT DESCRIPTION CITY COUNCIL
DATE AMOUNT
Multiple Departments Revenue: Adjusted User Fees to Full Cost Recovery, increasing the projected revenue July 10, 2024 ($2,601,020) Police Department COPPS Unit Expansion: 4 Police Officers, Supplies, and Vehicles June 19, 2024 1,013,000
Street Maintenance COPPS Unit Expansion: 2 Maintenance
Technicians and 1 Truck June 19, 2024 246,790
City Manager’s Office Position Reclassification for the Short-Term Rental Program July 10, 2024 65,340
Fire Department Additional funding for Medix Ambulances December 4, 2024 157,752 Police Department Renewal of the San Diego Humane Society Contract December 4, 2024 768,708
Multiple Departments Harmony Grove Emergency Declaration December 16, 2024 4,000,000
Multiple Departments Carryovers from Fiscal Year 2023/24 February 19, 2025 258,310 Multiple Departments Additional funding for the ERP Project February 19, 2025 407,700 Library Library utilities and relocation consulting February 19, 2025 95,000 City Manager’s Office Addition of a Management Analyst II position February 19, 2025 31,470 City Attorney’s Office Addition of a Deputy City Attorney and Legal Assistant – STR Program February 19, 2025 51,360
Police Department Addition of a Program Coordinator – STR Program February 19, 2025 23,930 Code Compliance Addition of 2 Code Enforcement Officers & 2 Vehicles – STR Program February 19, 2025 138,530
Development Services
Addition of 1 Principal Planner, 1 Senior Planner, 1
Associate Planner, and 1 Senior Administrative
Assistant
February 19, 2025 161,640
City Council Sister City Program February 26, 2025 25,000 Fire Department Firefighters Association MOU March 26, 2025 310,500 Police Department Police Officers Association MOU March 26, 2025 445,780 Economic
Development Indigenous Culture & Art Festival April 2, 2025 61,950 Community Services –
Library Library Relocation Services April 9, 2025 828,000 Development Services Second Amendment to the Matrix Contract April 16, 2025 300,000
Attachment "1"
167
Item16.
City of Escondido Fiscal Year 2024/25 Financial Report
11 GENERAL FUND AVAILABLE FUND BALANCES
General Fund Reserve
In December 2015, City Council adopted a Fund Balance Policy and established a General Fund target Reserve balance of 25% of General Fund operating revenues in order to maintain adequate levels of fund balance. This goal is based on a risk-based analysis to mitigate current and future risks, adequately provide for cash flow requirements, and to fund one-time unanticipated expenditure requirements.
Total General Fund budgeted operating revenue in FY2024/25 is $132,924,390 and 25% of this amount is $33,231,098.
The current General Fund Reserve balance is $17,392,319 , or 13% of budgeted operating revenue, which is below the identified acceptable risk-based analysis adopted by City Council and general government practices.
Section 115 Irrevocable Pension Trust Fund
In February 2018, City Council authorized the establishment of a Section 115 Irrevocable Pension Trust Fund. The Trust Fund is used to set aside and hold money to meet future pension liabilities and can be used to provide economic relief during recessionary cycles and/or rate increases that are significantly above anticipated projected emplo yee rate increases. Funds placed in this Trust can also be used to offset the City’s “normal” CalPERS costs, such that if funds are necessary for other purposes, a certain amount of flexibility is present. Another benefit is that funds held in the Trust can be invested in the same manner as funds in a typical pension fund rather than as part of the City’s General Fund, which means a potentially higher rate of return.
When the Pension Trust Fund was established, a funding policy for contributions to the Fund was recommended and included the four years of annual Successor Agency Redevelopment Loan Repayments of $14 million that began in FY2018/19, future proceeds from the sale of City Property belonging to the General Fund, and a portion of General Fund surplus at the end of each fiscal year, if one exists.
On June 30 , 2025 , the Section 115 Pension Trust Fund had a balance of $ 37,259,260.95 which included City contributions of $31,257,650 plus investment earnings net of expenses of $7,985,610. The Trust Fund has a 3-year rate of return of 7.28%, a 1-year rate of return of 8.62%, and a 3-month rate of return of 3.93%.
The following table provides a summary of the activity since the establishment of the Trust Fund.
Section 115 Pension Trust Fund
Initial Deposit – General Fund $1,984,000
General Fund Operating Results (5 years) 20,705,235
Successor Agency Advance Repayments 8,568,415
Investment Earnings, net of expenses 7,985,610
Balance as of June 30, 2025 $37,259,260
Attachment "1"
168
Item16.
City of Escondido Fiscal Year 2024/25 Financial Report
12 General Fund Other Available Resources
The General Fund has accumulated unrestricted resources in the fund that are available for City Council direction. The General Fund reported an Operating Surplus in FY2022/23 and FY2023/24. American Rescue Plan Act Lost Revenue funds were also fully recognized and used to support General Fund Public Safety services during this same timeframe.
In January 20204 City Co uncil approved the use of a portion of those funds totaling $5,221,000 listed below. In FY2024/25 two properties were sold by the city resulting in net revenue of $4,816,695. Additional funds have been allocated during the fiscal year with City Council approval.
DESCRIPTION CITY COUNCIL DATE AMOUNT
General Fund FY2022/23 Operating Surplus $3,167,030
General Fund FY2023/24 Operating Surplus (net of carryovers) 678,299 ARPA Lost Revenue 10,000,000
Utility Allocation January 31, 2024 (1,500,000)
Grand Avenue – Kalmia Roundabout January 31, 2024 (1,221,000) Splash Pad in Grove Park January 31, 2024 (2,500,000)
Net Resources FY2023/24 $8,624,329
Sale of Animal Shelter Facility November 25, 2024 4,386,192 Sale of 707 S. Hale Avenue December 23, 2024 430,503
Operation Harmony Grove December 16, 2024 (4,000,000)
Library Utilities and Preliminary Relocation Costs February 19, 2025 (95,000) Additional Funding for the ERP Project February 19, 2025 (327,700) Temporary Library Relocation April 9, 2025 (828,000)
Net Available General Fund Resources $8,190,324
FOR MORE INFORMATION
This summary report is based on detailed information generated by the City’s Finance department. If you have any questions or would like additional information on this report, please contact the Finance department at (760) 839 -4676 or visit www.escondido.gov.
Attachment "1"
169
Item16.
Attachment “2”
BUDGET ADJUSTMENT
REQUEST
Department: Finance
Department Contact: Christina Holmes
City Council Meeting Date:
(attach staff report) October 15, 2025
EXPLANATION OF REQUEST
Fiscal Year 2024/25 Financial Status Report - Carryovers and Budget Amendments
BUDGET ADJUSTMENT INFORMATION
Project / Account
Description
Ledger Accounts Spend Category Cost Center Fund Amount of Increase /
(Decrease)
Carryovers Supplies Safety Equipment Fire 1001 85,710
Carryovers Professional
Services
Professional
Services
Fire 1001 94,715
Carryovers Professional
Services
Professional
Services
Building 1001 37,720
Carryovers Professional
Services
Professional
Services
Engineering 1001 33,970
Carryovers Professional
Services
Professional
Services
Planning 1001 313,610
Carryovers Professional
Services
Professional
Services
Building 1001 95,000
Carryovers Professional
Services
Professional
Services
Engineering 1001 60,080
Carryovers Repairs and
Maintenance
Maintenance of
Equipment
Wastewater 1558 138,890
Carryovers Professional
Services
Professional
Services
Wastewater 1558 244,500
Carryovers Professional
Services
Professional
Services
Environmental
Programs
1558 305,780
Carryovers Professional
Services
Professional
Services
Recycling 1561 67,780
170
Item16.
Attachment “2”
Project / Account
Description
Ledger Accounts Spend Category Cost Center Fund Amount of Increase /
(Decrease)
Carryovers Repairs and
Maintenance
Repair Parts Fleet Services 1653 19,230
Carryovers Repairs and
Maintenance
Outside Repairs Fleet Services 1653 12,730
Carryovers Capital Outlay Motive
Equipment
Fleet Services 1653 3,122,000
Sales Tax on Pumpers Capital Outlay Motive
Equipment
Fire 1001 341,040
2 New Vehicles Capital Outlay Motive
Equipment
Fire 1001 405,000
CPR Machines Capital Outlay Equipment Fire 1001 180,000 CalOES
Reimbursements
Supplies Safety Equipment Fire 1001 107,500
Command Vehicle PROJECT:
Command Vehicle
Motive
Equipment
Police 1229
(from 1001) 218,040
4 New Vehicles Capital Outlay Motive
Equipment
Parks
Maintenance
1001 190,000
City Clerk’s Contracts Professional
Services
Professional
Services
City Clerk’s
Office
1001 54,400
Library Capital Project PROJECT:
Library
Infrastructure
Capital Outlay Library 1229
(from 1001) 815,000
Interwest Consulting
Agreement
Professional
Services
Professional
Services
Building 1001 500,000
Two New Vehicles Capital Outlay Motive
Equipment
Engineering 1001 140,000
Development Services
Director
Employee
Services
Employee
Services
Planning 1002 158,330
Visit Escondido
Expenses
Professional
Services
Professional
Services
Economic
Development
1001 58,600
APPROVALS
FINANCE DATE
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Item16.
KEY-
CONSENT CALENDAR CURRENT BUSINESS
PUBLIC HEARING WORKSHOP PROCLAMATION
10/22/2025
CURRENT BUSINESS - (J. SCHOENECK) - ECONOMIC DEVELOPMENT DEPARTMENT COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY (CEDS) UPDATE 10/29/2025 - NO MEETING (5TH WEDNESDAY)
11/5/2025
CONSENT CALENDAR - (C. MCKINNEY) - BID AWARD FOR THE STORM DRAIN PIPE LINING AND REHABILITATION PROJECT PHASE IV
172
Item17.