Escondido City Council
May 6, 2026

Public Services Agreement (v2) - 4 - CAO: 04/23/2024
any such insurance requirements in this Agreement, in addition to any other remedies the CITY may have, the CITY may, at its sole option, (i) immediately terminate this Agreement; or (ii) order CONTRACTOR to stop work under this Agreement and/or withhold any payment that becomes due to CONTRACTOR until CONTRACTOR demonstrates compliance with the insurance requirements in this Agreement.

7. Bonds.

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

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

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

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

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

d. If the surety on any bond furnished by the CONTRACTOR is declared bankrupt or becomes insolvent or its right to do business is terminated in any state where any part of the Work is located, the CONTRACTOR shall, within seven days thereafter, substitute another bond and surety, which must be acceptable to the CITY. No portion of the Work shall be performed without bonds, in a form and issued by a surety acceptable to the City. If one or more of such bonds shall, at any time, not be in full force and effect, CONTRACTOR shall immediately cease performance of the Work until CONTRACTOR is in full compliance with the bondin g requirements of this Agreement and California law. All delays and costs incurred or resulting from such occurrence shall be to the exclusive account of CONTRACTOR. Failure of the CONTRACTOR to promptly cure any failure to have the necessary bonds in full force and effect shall be grounds for immediate termination of this Agreement.

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

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

a. CONTRACTOR (including CONTRACTOR’s agents, employees, and subcontractors, if any) shall indemnify, defend, and hold harmless the CITY, its officials, officers, agents, employees, and volunteers from and against any and all claims, demands, actions, causes of action, proceedings (including but not limited to legal and administrative proceedings of any kind), suits, fines, penalties, judgments, orders, levies, costs, expenses, liabilities, losses, damages, or injuries, in law or equity, including without limitation the payment of all conseque ntial damages and attorney’s fees and other related litigation costs and expenses (collectively, “Claims”), of every nature caused by, arising out of, or in connection with CONTRACTOR’s performance of 126
Item7.

Resolution No. 2026-76
Exhibit “A”

Public Services Agreement (v2) - 5 - CAO: 04/23/2024
the Services or its failure to comply with any of its o bligations contained in this Agreement, except where caused by the sole negligence or willful misconduct of the CITY. b. CONTRACTOR (including CONTRACTOR’s agents, employees, and subcontractors, if any) shall defend, indemnify, and hold harmless the CITY, its officials, officers, agents, employees, and volunteers from and against any and all Claims caused by, arising under, or resulting from any violation, or claim of violation, of the San Diego Municipal Storm Water Permit (Order No.

R9-2013-0001, as amended) of the California Regional Water Quality Control Board, Region 9, San Diego, that the CITY might suffer, incur, or become subject to by reason of, or occurring as a result of, or allegedly caused by, any work performed pursuant to this Agreement. c. All terms and provisions within this Section 8 shall survive the termination of this Agreement.

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

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

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

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

13. Merger Clause. This Agreement, together with its attachments or other documents described or incorporated herein, if any, constitutes the entire agreement and understanding of the CITY and CONTRACTOR concerning the subject of this A greement and supersedes and replaces all prior negotiations, understandings, or proposed agreements, written or oral, except as otherwise provided herein. In the event of any conflict between the provisions of this Agreement and any of its attachments or related documents, if any, the provisions of this Agreement shall prevail.

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

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

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

17. Counterparts. This Agreement may be executed on separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. Delivery of an executed signature page of this Agreement by electronic means, including an attachment to an email, shall be effective as delivery of an executed original. The Agreement on file with the City 127
Item7.

Resolution No. 2026-76
Exhibit “A”

Public Services Agreement (v2) - 6 - CAO: 04/23/2024
is the copy of the Agreement that shall take precedence if any differences exist between or among copies or counterparts of the Agreement.

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

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

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

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

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

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

24. Immigration Reform and Control Act of 1986. CONTRACTOR shall keep itsel f informed of and shall comply with the Immigration Reform and Control Act of 1986 (“IRCA”). CONTRACTOR represents and warrants that all of its employees and the employees of any subcontractor retained by CONTRACTOR who perform any of the Services under t his Agreement, are and will be authorized to perform the Services in full compliance with the IRCA. CONTRACTOR affirms that as a licensed contractor and employer in the State of California, all new employees must produce proof of eligibility to work in the United States within the first three days of employment and that only employees legally eligible to work in the United States will perform the Services. CONTRACTOR agrees to comply with the IRCA before commencing any Services, and continuously throughout the performance of the Services and the term of this Agreement. 128
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Resolution No. 2026-76
Exhibit “A”

Public Services Agreement (v2) - 7 - CAO: 04/23/2024

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

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

CITY OF ESCONDIDO

Date: __________________ ___________________________________ Dane White, Mayor

GALA SYSTEMS INC.

Date: __________________ ___________________________________ Signature

___________________________________
Pierre Lebel, Chief Financial Officer

APPROVED AS TO FORM:

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

BY: __________________________

DATE: __________________

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

129
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Resolution No. 2026-76
Exhibit “A”

Public Services Agreement (v2) - 8 - CAO: 04/23/2024
ATTACHMENT “A”
Scope of Work

A. General

Gala Systems, Inc., a Stock Corporation - Out of State - Stock (“Contractor”) will provide the City of Escondido, a California municipal corporation (“City”) with orchestra lift service and repair services.

B. Location

Contractor will provide services at the City’s facility located at 340 N. Escondido Blvd. , Escondido, CA 92029.

C. Services

The project consists of site improvements to renovate three Orchestra lifts in two of the theatres, “The Lyric and Community Theatre” within the California Center for the Arts, Escondido Building (“CCAE”). Improvements include removal and replacement of existing orchestra lifts. Furnish all necessary material and equipment to complete the works per plans, specs and bid schedule located at 340 N. Escondido Blvd., Escondido, CA 92025.

D. Scheduling

Contractor to schedule specific dates of work in advance by contacting Ed Vasquez at 760-546- 3944 or [email protected]. Work shall be performed in -between the hours of 8 a.m. and 4: 30 p.m., Monday through Friday. Contractor shall sign in and sign out at the receptionist area. Further instructions will be provided upon scheduling.

E. Contract Price and Payment Terms

The contract price shall not exceed $ 753,800.00. The contract price includes all labor, materials, equipment, and transportation required to perform the work. Services will be billed as services are performed. Payment will be made after services have been performed and within 30 days of receipt of an invoice for those services.

F. Term

The term of this Agreement shall be for one year, commencing on the Effective Date of the Agreement.

130
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STAFF REPORT

May 6, 2026
File Number 0910-10

SUBJECT

LIBRARY INFRASTRUCTURE PROJECT FINAL CHANGE ORDER

DEPARTMENT

Community Services/Library

RECOMMENDATION
Request the City Council adopt Resolution No. 2026-075 authorizing the Mayor to execute a change order with Southwest Construction Services, Inc. in the amount of $1,345,450.60 for the Library Infrastructure Project (“Project”).

Staff Recommendation: Approval (Community Services: Joseph Goulart, Director of Public Works)

Presenter: Ed Vasquez, Project manager

ESSENTIAL SERVICE - Yes, Public Works/Infrastructure

COUNCIL PRIORITY - Increase Retention and Attraction of People and Businesses to Escondido

FISCAL ANALYSIS

The City of Escondido received a $10 million Building Forward Library Infrastructure Program Grant to replace critical infrastructure including lighting, windows, roof, and HVAC systems. The grant allows for consulting, labor, and materials. It excludes furniture, fixtures, equipment, and certain technology items.

The City Council approved a budget adjustment for $815,000 of Capital funding from the General Fund to increase the Library Infrastructure Project budget to cover the cost of replacing the windows not originally included with the Building Forward Library Infrastructure Program Grant.

The City Council approved a budget adjustment for $500,000 of Capital funding from the Measure I to increase the Library Infrastructure Project budget to cover all required improvements not allowable under the Building Forward Library Infrastructure Program Grant.

Of that total budgeted amount of $11,315,000, a total of $9,969,550 has already been expended via prior approved contracts. The $1,345,450.60 Ch ange Order requested would utilize all remaining funds 131
Item8.

budgeted for this Project, and would allow for completion of the Project.

PREVIOUS ACTION

On March 2, 2022, the City Council approved Resolution No. 2022 -32 authorizing the Deputy City Manager/Director of Communications & Community Services to submit an application to the California State Library for $10 million in funding through the Building Forward Library Infrastructure Program Grant and complete all necessary documentation to receive and spend funds should they be awarded.

On September 12, 2022, the City was notified that the application was successful, and that the Escondido Public Library was awarded the maximum amount of $10 million and removal of a matching funds requirement (“Grant”).

Since the City received the Grant, the bulk of the Grant funds have been utilized to move the Project toward completion. A number of contracts have been approved, including:

 On July 19, 2023, Council approved Resolution No. 2023 -86 authorizing the Mayor to execute a Consulting Services Agreement with Griffin Structures in the amount of $798,000 for project and construction management services for the duration of the Escondido Public Library Critical Infrastructure and Modernization Project. This agreement was terminated in June 2025 due to redundancy with City staff project management duties and responsibilities , so not all of those funds were spent.

 On January 24, 2024, Council approved Resolution No. 2024-06 authorizing the Mayor to execute, on behalf of the City, a Consulting Services Agreement with IDS Group, in an amount not to exceed $747,000 for design services for the Project. A First Amendment to the agreement was processed increasing the project by $150,000.

 On May 14, 2025, Council approved Resolution No. 2025-55 awarding a construction contract to Southwest Construction Services Inc. in the amount of $6,266,583.82 for the Library Infrastructure Project. As identified in the Resolution, a change order was processed by the Director of P ublic Works increasing the contract amount by $622,000.

 There have been various other agreements and change orders on a smaller scale, and the expenditures to date for the Project total $9,969,550.

On October 15, 2025, Council approved a budget adjustment of $815,000 to complete the replacement of windows that were not originally included in the Library Infrastructure Project.

On March 4, 2026, Council approved a budget adjustment of $500,000 to cover required improvements to comply with the Americans with Disabilities Act (“ADA”), updates to the fire protection system, and backflow preventors. These improvements are required by Building and Fire Code and are not eligible 132
Item8.

expenses under the Building Forward Library Infrastructure grant terms.

BACKGROUND

In September 2022, the City of Escondido was awarded a $10 million Building Forward Library Infrastructure Improvement Grant from the California State Library. This funding, provided without a matching requirement, was desig nated to address critical infrastructure needs at the Escondido Public Library, including replacement of lighting, roofing, windows, and HVAC systems.

In May 20 25, City Council approved the contract award to Southwest Construction Services and authorized the Director of Public Works to approve change order s not to exceed 20% of the contract amount or $1,253,316.76. Director of Public works has since approved change orders totaling that amount including full roof replacement and windows replacement.

The request for approval of these final change orders encompasses items beyond the authority allotted to the Director of Public Works, per procurement policy and procedures. Staff is returning to council for final authorization to process the remaining change orders.

To date, staff have accounted for all available grant funds including the remaining $845,450.56 which is part of this change order approval request. The items covered in this portion of the change order request include second floor lighting replacement, second floor door replacement including bringing all doors and hardware to ADA compliance, replacement of electrical wiring for all HVAC equipment, fro nt counter design changes, roof and overflow drains. All items to be covered by this portion of funds are included in Exhibit “A” to Resolution No. 2026-75.

While the original project scope included significant upgrades, not all improvements were covered under the Building Forward Library Infrastructure Improvement Grant. To ensure full modernization and compliance with current Building and Fire code, staff recommend s approval of a change order in the amount of $500,000.0 0 in Measure I funds to support the project . This portion of the change order includes items necessary for code compliance outside the building foot prin t, including path of travel improvements per the Americans with Disabilities Act (“ADA ”), updates to the fire protection system, backflow preventors for domestic and fire suppression water system , electrical work associated with changes, weather proofing and flashing of all new windows , fire sprinkler relocation, and cover the cost of unforeseen infrastructure improvements. These improvements are required by Building and Fire Code and are not eligible expenses under the Building Forward Library Infrastructure grant terms. These items to be covered by Measure I funds are included in Exhibit “A” to Resolution No. 2026-75.

RESOLUTIONS

a. Resolution No. 2026-75
b. Resolution No. –Exhibit “A”— Library Infrastructure Project Change Order form 133
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RESOLUTION NO. 2026-75

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR

TO EXECUTE A FINAL C HANGE ORDER WITH
SOUTHWEST CONSTRUCTION SERVICES , INC. FOR THE

LIBRARY INFRASTRUCTURE PROJECT TO COMPLETE THE

INFRASTRUCTURE IMPROVEMENTS

WHEREAS, the City of Escondido was awarded $10 million in funding f rom the Building Forward Library Infrastructure Grant Program by the California State Library in o rder to fund the City’s Library Infrastructure Project (“Project”); and
WHEREAS, the Project is designed to replace critical infrastructure including lighting, roofing, windows, electrical and HVAC systems; and
WHEREAS, Southwest Construction Services, Inc. was selected as the lowest responsive and responsible bidder; and
WHEREAS, staff previously approved change orders up to 20% of the original project award; and WHEREAS, staff recommends processing a change order for various infrastructure improvements including items not covered by the Library Infrastructure Improvement Grant (“Grant”); and WHEREAS, Grant covered items include : second floor lighting replacement, second floor door replacement including bringing all doors and hardware to ADA compliance, replacement of electrical wiring for all HVAC equipment, front counter design changes, roof and overflow drains; and WHEREAS, items not eligible for Grant funds include path of travel improvements per the Americans with Disabilities Act (“ADA”), updates to the fire protection system, backflow preventors for domestic and fire suppression water system, electrical work associated with changes, weather proofing and flashing of all new windows, fire sprinkler relocation and unforeseen infrastructure improvements ; 134
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and
WHEREAS, $845,450.56 in remaining Grant funds and Capital funds , as well as $500,000.00 in Measure-I funds are allocated in the budget to complete the Project; and WHEREAS, the work necessary to complete the Project is defined in Attachment -A and incorporated to this Resolution by this reference; and
WHEREAS, staff recommends approving change order with Southwest Construction Services Inc. in an amount not to exceed $1,345,450.60.

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 determines it is in the best interest of the public to award the change order to Southwest Construction Services Inc, for improvements at the Escondido Public Library.

3. That the City Council approves Resolution No. 2026-075, authorizing the Mayor to execute a construction change order for remaining infrastructure improvements as shown in Exhibit “A” in the amount not to exceed $1,345,450,60.

135
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City of Escondido
Public Works
201 N. Broadway
Escondido, CA 92025
Phone: 760-839-4668
Date: 5/6/2026 PROJECT:

PO#: 144 ACCOUNT #:

CONTRACTOR:

CO No. 006 $97,035.75
CO No. 020 $13,236.10
CO No. 021 $18,740.10
CO No. 027 $87,894.29
CO No. 030 $12,373.91
CO No. 043 $13,972.42
CO No. 056 $32,151.18
CO No. 070 $43,778.50
CO No. 071 $39,432.57
CO No. 072 $33,451.35
CO No. 073 $32,086.49
CO No. 074 $3,398.90
CO No. 075 $4,796.64
CO No. 076 $1,576.96
CO No. 077 $83,031.28
CO No. 078 $38,008.32
CO No. 080 $20,751.86
CO No. 081 $4,027.78
CO No. 082 $55,288.11
CO No. 083 $39,589.53
CO No. 084 $4,631.00
CO No. 085 $14,786.55
CO No. 086 $16,299.89
CO No. 088 $692.51
CO No. 089 $134,418.66
$845,450.65
This change will INCREASE the contract amount.

Based On:

Agreed Lump X Original Contract
Time and Mat N/A Current Contract
Time Extensio N/A Amount Due
Bid Unit Price N/A Amended Contract
To be paid: $1,345,450.24
Approved By:

CONTRACTOR CITY OF ESCONDIDO
Signature:

Print Name: Joseph Goulart
Title: Director of Public Works
Date: _______________________
Signature:

Print Name: Ed Vasquez
Signature:

Print Name:

Title:

Date:

Title: Construction / Project Manager
Date:

Library Infrastructure Project
CONTRACT CHANGE ORDER:

CE #074 - Pre Teen Entry & Door at RM 124B per Fire Marshall CE #032 - 2nd Floor Staff Hallway Access Door
CE #045 - IT Cabling Work
CE #058 - New Door Schedule
CE #072 - 2nd Floor Kitchen Remodel - RM 212
DESCRIPTION OF CHANGE:

SWCS, South West Construction
Additional work necessary to complete the project, unforseen items CE #082 - Owner Requested Changes - Electrical - RFI 78/80 CE #087 - 2nd Floor Interior Paint - Revised from Walk 12/10/25 CE #023 - RFI XX - Domestic Water Backflow Replacement
CE #029 - RFI #016 - HVAC VAV, Heater Coils, Diffusers
CE #083 - Additional Fencing Around Outbuildings
CE #076 - Additional Exterior Fire Line Investigation - T&M TITLE:

CE #090 - Roof & Overflow Drain Piping
CE #022 - RFI XX - Irrigation Backflow
CE #073 - RTU Existing Wiring
CE #077 - Additional IT Work
CE #075 - Drywall 1st Floor Ceiling - RFI 42B
CE #094 - 2nd floor lighting redesign
CE #089 - Bathroom Subfloor
CE #084 - Fire Backflow
CE #085 - Fire Alarm Adds & Design Per Fire Marshal
CE #086 - Casework Changes - Bulletin 1 - NET
CE #088 - Secured Door Access Control Conduit
CE #078 - Relocate Fire Sprinkle per Code
CE #079 - Front Counter Design Change
CE #092 - Water Heater Assembly Gauges

Resolution No. 2026-75
Exhibit "A"

136
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City of Escondido
Public Works
201 N. Broadway
Escondido, CA 92025
Phone: 760-839-4668
Date: 5/6/2026 PROJECT: Library Infrstructure Improvement Project PO#: 144 ACCOUNT #:

CONTRACTOR:

CO No. 090 $5,135.59
CO No. 093 $8,593.00
CO No. 094 $9,538.00
CO No. 095 $4,005.00
CO No. 096 $4,362.00
CO No. 097 $6,603.00
CO No. 098 $2,563.00
CO No. 099 $939.00
CO No. 100 $1,085.00
CO No. 101 $927.00
CO No. 102 $3,696.00
CO No. 103 $27,569.00
CO No. 104 $24,495.00
CO No. 105 $927.00
CO No. 106 $7,233.00
CO No. 107 $3,099.00
CO No. 108 $1,908.00
CO No. 109 $12,126.00
CO No. 110 $21,602.00
CO No. 111 $846.00
CO No. 112 $4,401.00
CO. No 113 $3,315.00
CO No. 114 $3,059.00
CO No. 115 $15,908.00
CO No. 116 $1,550.00
CO. No. 117 $141,283.00
CO. No. 118 ROM - Painting of sloped wood ceilings on 2nd floor $31,964.00 CO. No 119 ROM - Fire Backflow - Plan Development & reviewer charges $7,461.00 CO. No. 120 $5,931.00
CO. No. 121 $4,832.00
CO. No. 122 $813.00
CO. No. 123 $4,590.00
CO. No. 124 $1,952.00
CO. No. 125 $4,582.00
CO. No. 126 $2,017.00
CO. No. 127 $3,150.00
CO. No. 128 $35,919.00
CO. No. 129 $1,880.00
CO. No. 130 $8,516.00
CO. No. 131 $7,734.00
CO. No. 132 $581.00
CO. No. 133 $5,802.00
CO. No. 134 $43,638.00
ROM - Friends Access Panel adds in soffit 12x12
ROM - ADA Pod electrical outside RM 124
ROM - Paint Drywall ceiling - Tectum Replacement
ROM - SWCS Extended GC's
ROM - Additional Primer coat on sloped ceilings
ROM - Misc T&M work - Floor repair Rm 215, Top of soffit at entry, Box ROM - Floor prep 2nd floor for unforeseen conditions
ROM - T&M Misc 2nd floor Electrical items
ROM - T&M Paint color changes and additions
ROM - RFI 102 - 175 amp breaker in Panel B & Replacement of Feeder ROM - RFI 108 - Power for Controls in Mech Well
ROM - Painting of window frames 2nd floor corridor
ROM - Pajayma Blue upcharge for P1 & P2 fixtures
CONTRACT CHANGE ORDER:

ROM - Add'l Concrete Demo, excavation, & concrete work + Roof drain ROM RFI 42B - T&M Painting of drywall ceilings at entry and Make ROM T&M - WT 1-4 T&M Plumbing Changes
SWCS, South West Construction
ROM RFI 33e Electrical Changes Room 106 for Casework
ROM - Concrete Entryway - Demo, ADA grading and re-pour ROM - Weatherproofing & Flashings - Exterior windows
ROM - Fire Alarm - Design for Changes & 3rd party reviewer charg ROM - T&M Backing above 2x12 trim to drywall up to ceiling w/acc ROM RFI XX - new cable pulls required at Cust Svc desk & RM 10 TITLE:

Additional work necessary to complete the project, unforseen items ROM T&M Backing at added TV's in RMs 106, 118, 112 & 107 ROM - T&M Front Door Card Access Wire re-route
ROM T&M Demo and rebuild wall header height at 1st floor hallwa ROM - T&M TITAN - Fire Sprinkler relocation due to 2x4 lighting ch DESCRIPTION OF CHANGE:

ROM RFI XX - HVAC reconfiguration of duct in RMs 228 & 216B ROM RFI XXX - T&M Painting of Puttycoat Concrete - ACTUAL ROM RFI XXX - Electrical Pathway for Fire Alarm approved plans ROM - T&M R&R of Drywall and shear in RM 106 west
Expanded Screen for HVAC Cages
ROM T&M RR 117 Cutback concrete and reframe wall for 18" ADA ROM 2nd floor tack panels
ROM - Mud ring extension for tack panel installation
ROM Shutters 2nd floor serving counter
ROM RFI 101 - RM110 AC-3 Return Air, Makers space HVAC
ROM RFI XXX - puttycoating of concrete
ROM T&M Demo and rebuild wall & door opening at door 110 for f ROM T&M Saturday OT for JDS Plumbing
ROM T&M - IT Room Electrical Ground fix - NTE $4300 + Conduit ROM T&M JDS RR 116 & 117 Bracing of cast iron vent pipe

Resolution No. 2026-75
Exhibit "A"

137
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CO. No. 135 $11,870.00
$499,999.59
This change will INCREASE the contract amount.

Based On:

Agreed Lump X Original Contract $6,266,583.82
Time and Mat N/A Current Contract $8,283,044.00
Time Extensio N/A Amount Due $1,345,450.60
Bid Unit Price N/A Amended Contract $9,628,494.60

To be paid: $1,345,450.60
Approved By:

CONTRACTOR CITY OF ESCONDIDO
Signature: Signature: Signature: ___________________
Print Name: Print Name: Ed Vasquez Print Name: Joseph Goulart Title: Title: Construction / Project Manager Title: Director of Public Works Date: Date: Date:

MISC T&M Changes per Ed's Direction

Resolution No. 2026-75
Exhibit "A"

138
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STAFF REPORT

May 6, 2026
File Number 1320-05

SUBJECT
CHANGE ORDERS TO PURCHASE ORDER AGREEMENT NO. 195 AND 198 , INCREASING THE ANNUAL

PURCHASE AMOUNT OF SALT AND PURATE FOR THE WATER TREATMENT PLANT

DEPARTMENT
Utilities, Water

RECOMMENDATION
Request the City Council:
1) Adopt Resolution No. 2026-69, authorizing the Finance Department to execute a change order in the amount of $ 25,000, increasing the annual purchase amount for purate to $ 413,273.50; and

2) Adopt Resolution No. 2026-74, authorizing the Finance Department to execute a change order in the amount of $27,205, increasing the annual purchase amount for Salt to $226,698.75.

Staff Recommendation: Approval (Utilities: Daniel Peterson, Director of Utilities) Presenter: Reed Harlan, Assistant Director of Utilities, Water ESSENTIAL SERVICE – Yes, Clean Water
COUNCIL PRIORITY – Prioritize Public Safety

FISCAL ANALYSIS
Funding is available in the operating budget of the Water Enterprise Fund.

PREVIOUS ACTION
On May 25, 2022, the City Council adopted Resolution No. 2022-51, authorizing the unit pricing for seventeen chemicals, effective July 1, 2022 through June 30, 2023, to be used at the Escondido -Vista Water Treatment Plant (“WTP”), Hale Avenue Resource Recovery Facility (“HARRF”), and the Membrane Filtration Reverse Osmosis (“MFRO”) Facility. The City Council authorized the option to renew for four, one-year periods, conditioned upon budget appropriations. 139
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On June 7, 2023, th e City Council adopted Resolution No. 2023-61, accepting the chemical unit price increases and authorizing the Finance Manager to execute purchase orders for the 2023-2024 fiscal year, effective July 1, 2023 through June 30, 2024, and authorizing the City Manager to approve of chemical unit price increases, including those greater than 10%, for the three remaining one-year period options to renew.

BACKGROUND
The W ater Treatment Plant (“WTP”) relies on several essential chemicals to meet state and f ederal drinking water safety requirements. These chemicals play a critical role in disinfecting water and ensuring it is safe for delivery to customers.

Annual chemical purchase amounts are estimated based on prior fiscal year usage, contracted cost, and forecasted water production.

The current fiscal year has se en warmer, dri er conditions which has resulted in hi gher than budgeted water production. This has led to an increased usage of purate and salt and it is anticipated that the funds in the existing Purchase Order agreements for these chemicals will be exhausted before the end of the 2025-2026 fiscal year.

Purate is one of the two chemical components required to make chlorine dioxide, a disinfectant necessary to treat local water sources. Purate is used to inactivate harmful microorganisms and to control certain taste and odor causing compounds.

Salt is the sole feedstock used to produce the WTP’s on-site production of its primary disinfectant. In the past, salt usage was supplemented with deliveries of commercial bleach. However, ongoing supply-chain issues have made dependence on external suppliers increasingly unreliable. To mitigate this operational risk, the WTP has strategically shifted to ward greater reliance on its on -site production. This transition, coupled with increased water demand, has led to both higher salt consumption and higher overall expenditures for this chemical.

RESOLUTIONS
a. Resolution No. 2026-69
b. Resolution No. 2026-74

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RESOLUTION NO. 2026-69

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE

ADDITIONAL PURCHASE OF THE PURATE CHEMICAL

FOR THE WATER TREATMENT PLANT

WHEREAS, the Escondido-Vista Water Treatment Plant (“WTP”) requires the use of numerous chemicals to treat raw water to potable drinking water standards; and WHEREAS, sufficient funds are available within the operating budget of the Water Enterprise Fund to purchase necessary water treatment chemicals; and
WHEREAS, purate is one of the two critical components required to produce chlorine dioxide for the inactivation of pathogenic organisms and oxidation processes; and WHEREAS, the warmer and drier conditions during the current fiscal year has resulted in higher than budgeted water production; and
WHEREAS, the authorized purchase amount of purate is projected to be exhausted prior to the end of the 2025-2026 fiscal year.

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

1. That the above recitations are true.

2. That the City Council authorizes the additional purchase of purate and authorizes the Finance Department to execute a change order in the amount of $25,000.

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RESOLUTION NO. 2026-74

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE

ADDITIONAL PURCHASE OF SALT FOR THE WATER

TREATMENT PLANT

WHEREAS, the Escondido-Vista Water Treatment Plant (“WTP”) requires the use of numerous chemicals to treat raw water to potable drinking water standards; and WHEREAS, sufficient funds are available within the operating budget of the Water Enterprise Fund to support the purchase of required treatment chemicals; and WHEREAS, salt is used to produce the WTP’s primary disinfectant through on -site sodium hypochlorite generation, which is supplemented by deliveries of commercial produced bleach; and WHEREAS, ongoing supply-chain volatility and recurring bleach shortages have rendered reliance on third-party chemical suppliers increasingly unreliable; and WHEREAS, in response, the WTP has increased reliance on on-site disinfectant production, which when combined with increased water demand and industry -wide cost escalations in transportation and raw materials, has resulted in higher salt consumption and increased per-unit pricing; and WHEREAS, increased water demands and supplier price increases have adversely impacted the regional market for water treatment chemicals; and
WHEREAS, due to these factors, the currently authorized purchase amount of salt is projected to be exhausted prior to the end of the 2025-2026 fiscal year. 142
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NOW, THEREFORE, BE IT RESOLVED by the Ci ty Council of the City of Escondido, California , as follows:

1. That the above recitations are true.

2. That the City Council authorizes the additional purchase of Salt and authorizes the Finance Department to execute a change order in the amount of $27,205.

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STAFF REPORT

May 6, 2026
File Number 0460-20

SUBJECT

PENSION OBLIGATION BOND WORKSHOP

DEPARTMENT
Finance

RECOMMENDATION
Request the City Council receive information on Pension Obligation Bonds and the CalPERS Unfunded Accrued Liability
Staff Recommendation: Receive and File (Finance: Christina Holmes, Director of Finance) Presenter: Christina Holmes, Director of Finance
ESSENTIAL SERVICE – No
COUNCIL PRIORITY – Financial Stewardship

FISCAL ANALYSIS
Ongoing information for budget planning purposes.

PREVIOUS ACTION
Following CalPERS and pension obligation bond workshops with the City Council on January 26, 2022 and May 25, 2022 , on June 22, 2022 , the City Counci l approved Resolution No. 2022 -89 authorizing judicial validation proceedings relating to the issuance of bonds to refund certain pension obligations of the City.

BACKGROUND
The City of Escondido provides retirement benefits to its employees who provide the City services residents rely on, by contracting with the California Public Employees Retirement System ( “CalPERS”).

Retirement benefits are funded by contributions from both employees and the City (“normal” annual service costs) as well as investment earnings. Annual contribution amounts are determined based on a percentage of payroll and in accordance with an actuarially based funding policy. The actuarially - determined pension funding plan determines exactly how much should be contributed each year to ensure that the benefits being earned will be securely funded in a systematic fashion. Since actuarial assumptions are for the long term, demographic and economic assumptions can vary from actual 144
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experience. There are many factors considered such as mortality experience, retirement rates, disability incidences, salary growth, investment returns and more. An actuarial plan valuation is therefore prepared each year to true-up contribution levels to better match actual experience.

CalPERS invests contribution payments with the goal of earning sufficient returns over the long -term to pay defined benefits as promised and cover CalPERS expenses. Historically, more than 60% of all funds paid to CalPERS retirees comes from investment earnings. The estimated long -term average return expected to be earned on investments is referred to as the “discount rate” . When lower investment earnings occur, future contributions must increase to make up the expected difference and an unfunded accrued liability (“UAL”) is created. The UAL represents the shortfall or gap between what is needed to pay retiree benefits versus how much in current assets the City actually has in its accounts with CalPERS.

The UAL is calculated annually and changes depending on the demographic trends of the plan participants.

For many years, due to positive investment returns, CalPERS cities were “superfunded,” meaning total plan assets exceeded the total CalPERS projected liability . However, during the Great Recession and resulting downturn in the economy, investment returns were impacted negatively nationwide, including CalPERS investments, decreasing the City’s total plan assets and creating an unfunded liability. In addition to the investment losses, adjustments hav e been made to demographic assumptions such as higher retirement rates, and also the expectation that retired employees are living longer, which have also contributed to the increasing liability.

As noted above, the UAL is the shortfall between what the City has in assets vs. what it will need to fully pay the benefits that it has committed to its employees and retirees. The UAL is essentially the City’s debt owed to CalPERS, and CalPERS charges the City a 6.8% interest rate on this debt with a mandat ory payment schedule. Over the last 5 years, the City’s UAL for its CalPERs Miscellaneous and Safety Plans has grown 11%, from $289 million to about $319 million. The table below reflects the UAL from the most recent CalPERS actuarial valuation as of June 30, 2024 (latest information available).

City of Escondido UAL Calculation Based on CalPERS 06/30/2024 Valuation Miscellaneous Safety Total
A Entry Age Normal Accrued Liability $551,263,550 $545,211,670 $1,096,475,220 B Market Value of Assets (MVA) $391,871,646 $384,917,901 $776,789,547 C Unfunded Accrued Liability (UAL) A - B $159,391,904 $160,293,769 $319,685,673 D Funded Ratio B / A 71.1% 70.6% 70.8%

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CalPERS and the City of Escondido have taken a number of actions to address unfunded liabilities across its member plans with the objective of reaching 100 percent funded status . Since December 2016, CalPERS has been lowering its discount rate in recognition that its assumptions about the rate of return on investments have been overly optimistic. The discount rate was lowered from 7.5% to 7.0% over a 3 - year period beginning with the June 30, 2016 valuation. Without any offsetting action, reducing the discount rate increases costs to member agencies in the short -term. In the long-term, the reduced rate is expected to lower the cost to member agencies as CalPERS is more likely to achieve the investment earnings target. When CalPERS last reduced its discount rate, causing employer liabilities to significantly increase, CalPERS also implemented a “ramp up” strategy to smooth out the increases in UAL contributions. As opposed to a fixed-level payment schedule, CalPERS began using a 25-year amortization schedule where payments are ramped up in the beginning years and ramped down in the ending years.

As a result of these actions, annual payments made to CalPERS to amortize the UAL have grown rapidly from $ 25.4 million in FY2022/23 to $ 32.7 million in FY2026/27. The chart below sh ows the current CalPERS unfunded liability amortization schedule for the Miscellaneous and Safety Plans. The General Fund is responsible for 100% of the Safety Plan and approximately 56% of the Miscellaneous Plan payments. The remaining portion of the Mis cellaneous Plan is funded by the Water, Wastewater, and Internal Service Funds.

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Pension cost increases are one of the largest financial challenges facing most cities throughout the state and are primarily due to factors outside of the cities' control, namely actuarial assumption changes made by CalPERS and below average investment returns. CalPERS and the League of California Cities have detailed various options available to help manage pensions. There is no perfect solution to managing a City’s pensio n obligations and many agencies employ multiple methods to manage their pension obligations. The most typical options include:

1. Identify new sources of revenue to help defray the costs of the City’s pensions;

2. Using cash reserves to make additional payments to CalPERS or to the City's Section 115 Pension Trust Fund to help stabilize yearly fluctuations in pension rates;

3. Pursue a CalPERS Fresh Start which allows an agency to consolidate multiple amortization bases (different components of the UAL) into one base paid off over a shorter period. While annual payments will increase, the UAL can be paid off earlier and it would save the City money over the long-term; or

4. Restructure the UAL at a lower interest rate, such as a Pension Obligation Bond.

PENSION OBLIGATION BONDS
Pension Obligation Bonds (“POB”) allow an agency the ability to “refinance” some or all of their UAL with CalPERS (the City still needs to pay 100% of the normal cost) that has an effective inter est rate of 6.8% with taxable bonds at a lower market rate. The overall strategy of POBs is to achieve interest rate savings (i.e. arbitrage) between the 6.8% and market rate bond issuance. A POB issuance restructures the City’s UAL obligation to CalPERS into an obligation to investors. The issuance provides a lump sum that is remitted to CalPERS which reduces or temporarily eliminates the City’s UAL obligation to CalPERS and replaces it with an obligation to investors.

The City will always have some version of a UAL with CalPERS because investment earnings will never exactly hit the CalPERS target and actuarial assmptions will change each year. So even if the City paid off the current UAL with CalPERS or issued POBs and paid those off, it does not prevent the addition of some level of UAL in the future. However, once the current UAL or POBs are paid in full, the amount of the UAL that arises in the future should generally, absent large investment losses, be able to be remedied annually, or shortly thereafter, because it would be significantly less.

Potential Benefits of Pension Obligation Bonds:

There are several potential benefits the City could realize by issuing POBs. These potential benefits include:

1. A tool for fiscal sustainability:

POBs provide the ability to alter the City’s UAL payments in a way that could support long -term financial sustainability, help provide budget predictability and minimize the year over year variability in payments, and provide enhanced resiliency to economic shocks. 147
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2. Budgetary savings:

Using POBs to modify the current CalPERS UAL payment schedule’s peak in projected payments to a more predictable or level structure can create cash flow savings.

3. Interest rate “savings” from arbitrage:

Issuing POBs at market rates that are lower than what CalPERS charges on the UAL creates interest savings through arbitrage. In this example, arbitrage is created by taking advantage of the difference between the CalPERS rate of 6.8% and current market rates. All else being equal, the City would realize a lower cost of debt.

4. Maturity modification:

A POB may have a shorter or longer repayment period based on market conditions and the financial objectives of the issuer. However, if the POBs are structured with deferred principal amortization or repayment longer than the actuarial amortization period the overall cost of debt may increase. Further lengthening the debt repayment period adds risks and is specifically noted in the Government Finance Officers Association advisory against POBs.

5. Preservation of reserve and service levels:

Potential savings achieved through a POB issuance could reduce the need to use reserves to fund ongoing expenditures or reduce service levels.

Potential Risks of Pension Obligation Bonds:

The Government Finance Officers Association (GFOA) Advisories identify policies and procedures necessary to minimize a government’s exposure to potential loss in connection with its financial management activities. The GFOA has issued an Advisory that recommends state and local governments do not issue POBs as there are several risks associated with issuing POBs. These potential risks include:

1. It turns a “variable” obligation into a “fixed” obligation:

The City’s UAL obligation to CalPERS will ch ange year over year. It could increase or decrease based on a variety of factors such as investment returns or actuarial assumption changes. This allows the City to benefit from UAL decreases (i.e. lower payments to CalPERS) but does also mean the City is negatively impacted by increases (i.e. higher payments to CalPERS). Issuing a POB transfers and refinances the obligation due to CalPERS into a fixed obligation due to investors. An obligation due to investors will not increase or decrease over time which can be beneficial under the right conditions as it limits downside risk associated with an increasing UAL. However, it also carries risk as a fixed obligation because it cannot take advantage of a consistently decreasing UAL.

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2. Low pension fund returns:

If CalPERS investment earnings are below its current discount rate of 6.8% in a given year, the City’s UAL will increase from the addition of a new amortization base to reflect the investment earnings shortfall. This investment shortfall is applied to the City’s Market Value of Assets (MVA) which will be higher after the issuance of POBs. The new amortization base from the investment shortfall will be larger given the MVA is higher resulting in a larger amortization base than the City would have had before issuing POBs. The City’s funded ratio would still be higher, however.

3. “Too much of a good thing”:

If CalPERS investment returns consistently exceed 6.8% after the City issues a POB, the City’s pension plan could become super -funded (i.e. has placed more money with CalPERS than is necessary to cover its pension obligations). Because the POBs become a fixed obligation, the City would not benefit from these surpluses (required contributions would not decrease as the Normal Cost must always be paid) which means the City loses the benefits of cash it could have used on other city services.

4. Future UAL can still change:

The City will always have some UAL or the potential for some UAL. Issuing POBs does not eliminate the City’s UAL obligations; it merely refinances the City’s UAL obligations as of a point in time. This will occur as a result of things such as CalPERS investment returns, future changes in the CalPERS discount rate, changes in actuarial assumptions, etc.

5. Market timing risks:

Market timing risk is related to the timing of the investment of the bond proceeds. A POB issuance produces a lump sum of proceeds which must be remitted to CalPERS immediately after issuance.

This lump sum concentrates market timing risks rather than spreading it. This is especially a consideration in the current economic environment as equity markets are at all -time highs. If a market crash occurred between the bond sale and CalPERS investment of the bond proceeds, which is typically two weeks apart, the initial investment cost would be lower and could potentially provide higher future returns. However, if a market crash occurred after the initial investment of bond proceeds, it would negatively impact future earnings given the decreased potential for compounded earnings. It would also likely result in a new amortization base and increase in UAL all else being equal.

6. Increased bonded debt and credit risk:

Issuing POBs would reduce the City’s UAL but increases its bonded debt potentially using up debt capacity that could be used for other purposes. Having more bonded debt may also impact the City’s credit rating. S&P Global Ratings views POBs in environments of fiscal distre ss or as a mechanism for short-term budget relief as a negative credit factor.

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7. Judicial validation process:

The City must proceed through a judicial validation process to issue POBs. This legal filing may be challenged in court proceedings and, if a challenge was successful, prevent the issuance of POBs.

8. Political process:

POBs can be controversial because, among other things, some view them as gambling on future market returns and they’ve received a negative reputation due to well publicized bankruptc ies (Detroit, Stockton, and San Bernardino). Stakeholders, constituents, and interest groups may be critical of using POBs as an option for managing the City’s pension obligations.

JUDICIAL VALIDATION PROCESS
On June 22, 2022 the City Council approved Res olution No. 2022-89 which authorized judicial validation proceedings relating to the issuance of bonds to refund certain pension obligations of the city. Authorizing the validation proceeding is the first step in the issuance process; it entails the courts validating the City’s legal ability to issue POBs, and to confirm that the sale meets the State of California’s constitutional requirements. Under normal circumstances, t he validation process takes about 4 months to complete.

Key milestones of the validation process are listed below:
 City Council passes a resolution authorizing the sale of POBs;  File validation action with San Diego County Superior Court;  Receive Order for Publication of Summons from the Court (This can take >3 weeks to receive);  Publication of notice in local newspaper;
 Waiting period for any responding party to file a petition;  Clerk enters hearing for a default judgement if there is no responding party, schedules a hearing;  Hearing for default judgement, if no responding party;  30-day appeal period.

An answer to the city’s validation action was filed challenging that pension bonds are prohibited as they violate the public debt limitations in the California Constitution (Art XVI, §18). The legal filing prevented the city from moving forward with the issuance of pension bonds and resulted in three-years of litigation defending the Resolution . The city was initially successful in the trial court; however, the case was appealed to the Fourth District Court of Appeal which unanimous ly affirmed the trial court’s decision in June 2024.

The Howard Jarvis Taxpayers Foundation then petitioned the California Supreme Court to review the matter. Two other California cities, City of San Jose and City of Oxnard, both achieving success in t heir respective courts of appeal in similar litigation, were consolidated with Escondido for review by the California Supreme Court. The first appeal in the queue was the City of San Jose case and after oral argument, the Supreme Court issued its unanimous opinion again affirming that there is no constitutional debt limitation prohibition in the issuance of pension obligation bonds. The case is important as it clarifies for all California cities that these financing opportunities are constitutional. The California Supreme Court 150
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issued its Remittitur whereby it has affirmed the Court of Appeal decision in the city’s favor due to its decision in the San Jose case. This action effectively ends all further litigation and the city can legally move forward with issuing pension obligation bonds.

NEXT STEPS

U. S. Treasury interest rates (borrowing rate) have changed substantially since the action taken by the City Council in 2022. Leading up to 2022, interest rates were historically low following the COVID-19 pandemic.

After 2022, U.S. Treasury interest rates rose significantly with 10-year yields climbing from approximately

1.76% in early 2022 to over 4% in 2026. Due to the change in the market, the estimated debt service payments of principal and interest exceed the annual Unfunded Accrued Liability payments forecasted by CalPERS. Budgetary savings would not be realized by the issuance of bonds, a reduction in current interest rates of at least 100 basis points (1.0%) would need to occur in order to recommend pursuing the issuance of bonds.

The City’s bond underwriter, Stifel Public Finance, is monitoring interest rates closely. When the market has adjusted to rates where the recommendation is to move forward with the issuance of bonds, staff will return to City Council with recommendations for the financing and review and approval of the bond documents.
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STAFF REPORT

May 6, 2026
File Number 0480-45

SUBJECT

COMMUNITY SERVICES DEPARTMENT USER FEE UPDATE

DEPARTMENT
Community Services

RECOMMENDATION
Request the City Council receive and file the Community Services department user fee update.

Staff Recommendation: Receive and File (Department Name: Joseph Goulart, Director of Public Works) Presenter: Robert Rhoades, Assistant Director of Community Services ESSENTIAL SERVICE – No
COUNCIL PRIORITY – Build Trust and Accountability; Financial Stewardship

FISCAL ANALYSIS
Community Services Department revenue has increased steadily, rising from $954,225 in Fiscal Year (“FY”) 2020 to $1,892,487 in FY 2025, excluding revenues generated through contract agreements with the Escondido Union School District for Before and After School Program services. This growth reflects both program expansion and incremental fee adjustments over the period.

In July 2024, the City Council directed the Community Services Department to adjust rental fees to achieve full cost recovery and to align program fees with top‑of‑market rates, or to increase fees by 10 percent in cases where comparable market data was unavailable. These f ee adjustments were implemented with the fall 2024 registration season.

Despite these changes, revenue increased modestly by approximately 4 %, or $72,675, compared to the prior fiscal year. Several factors likely contributed to this limited increase, including: existing fees that were already near top‑of‑market levels; decreased participation associated with price sensitivity among users; partial ‑year implementation of the updated fee structure; and prevailing economic conditions, including rising cost s of living. Recreational programming is often considered a discretionary service, which can affect enrollment as households prioritize essential needs such as food, housing, and health and safety expenditures.

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PREVIOUS ACTION
On July 10, 2024, the City C ouncil approved a comprehensive update to the Community Services Department fee schedule. The approved action transitioned facility rental fees to a full cost ‑recovery model and adjusted recreation program fees to align with top ‑of‑market rates. In instanc es where comparable market data was unavailable, a 10 percent fee increase was applied.

As part of the approval, the City Council directed staff to return in the second year of implementation to provide an update on the impacts of the revised fee structure.

BACKGROUND
Following City Council approval of the comprehensive fee update, the Community Services Department implemented adjustments to both program and facility fees to better reflect the true cost of service delivery. To ensure a smooth transition and provide adequate notice to affected stakeholders, staff initiated a 60-day notification period for rental groups and service providers prior to implementation.

The updated fee schedule became effective with the launch of the Fall 2024 registration period. While these adjustments moved the Department closer to a cost -recovery framework, overall revenue growth has remained modest. Total Community Services revenue, excluding contract agreements, increased by $72,675, or approximately 4%, rising from $1.83 million in FY 2024 to $1.9 million in FY 2025.

Revenue Categories
Community Services Department revenue is generated across five categories: Programs and Activities, Park and Facility Rentals, Permit Fees, Administrative Fees, and Donations/Advertising.

In FY 2024/25, Programs and Activities represented the largest share of departmental revenue, accounting for 60.3% of total revenues. This was followed by Park and Facility Rentals at 30.0%, Administrative Fees at 6.6%, Permit Fees at 2.3 %, and Donations/Advertising at 0.83 %. Overall, the relative distribution of revenue across these categories has remained generally consistent over the past five fiscal years, as shown below.

Revenue Category Avg FY2025 FY2024 FY2023 FY2022 FY2021 Programs and Activities 57.4 60.3 62.8 57.7 53.4 49.8
Park/Facility Rentals 35.3 30.0 29.1 34.0 38.5 43.2
Permit Fees 0.42 2.3 1.78 1.68 1.81 0.65
Administrative Fees 6.0 6.6 5.1 5.4 4.8 5.1
Donations/Advertising 1.21 0.83 1.23 1.24 1.51 1.19
Expressed in rounded percentages
The data reflects a gradual shift toward greater reliance on program participation revenue, consistent with Council direction to align program fees with market rates, while facility rental revenue has declined 153
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proportionally as a share of total revenues. Smaller revenue categories (permit fees, administrative fees, and donations/advertising) have remained relatively stable and continue to represent a limited portion of overall departmental funding.

Programs and Activities
Despite the implementation of updated program fees, revenue in the Programs and Activities category increased by less than 1 %, rising from $1.162 million in F Y2024 to $1.167 million in FY2025. During the same period, overall program participation declined by approxima tely 3.3 %. Several factors likely contributed to this outcome, including:
 Many programs were already priced at or near top-of-market rates prior to the fee adjustments, limiting the potential for additional revenue growth.
 Contract classes, which account f or approximately 41% of Programs and Activities revenue, are priced by independent instructors, reducing the Department’s ability to directly influence fees.  Price sensitivity within the community for select program offerings.  The discontinuation of two programs during the fiscal year.

While participation declines were observed across multiple program areas, the most notable reductions occurred within Learn-to-Swim, general recreation classes, and the Youth Soccer Program.

The Learn-to-Swim Program experien ced the most significant decline, with participation decreasing by nearly 1,000 participants following a pricing adjustment to align with top-of-market rates. Historically, the City of Escondido has intentionally priced aquatic programs toward the lower to mid-range of the regional market to encourage participation in this vital, life-saving service. Drowning remains the leading cause of accidental death among young children, and access to swim instruction plays a critical role in risk reduction.

In accorda nce with City Council direction, the Community Services Department conducts an annual market survey of comparable municipal agencies and providers to establish top -of-market pricing for aquatic programs. The results of the 2026 swim lesson comparison are summarized below:

Swim Lessons Fee
British Swim School* $165
Elemental Aquatics* $88
Vista** $65
Escondido $52
San Marcos $52
Oceanside $50
Poway $32.50
Carlsbad $28
*private lessons/private pools; **includes $26 1-day Wave Waterpark Pass 154
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The comparison data underscores the price -sensitive nature of the Escondido community. While participants may be willing to absorb higher fees when additional value is clearly provided, such as private instruction or bundled amenities , participation tends to d ecline as fees increase without corresponding enhancements.

The Youth Soccer Program experienced a 10% decline in participation, primarily within the 3‑ to 4‑year‑old age divisions. Feedback from participants indicated that the perceived value of the program was no longer aligned with the fee structure, particularly when compared to older age groups whose participation experience included greater playing time at the same price point. This concern was reflected in approximately 10 formal complaints received by staff. While programmatic adjustments have been implemented to address some of these issues, the overall cost ‑to‑value imbalance for younger participants remains a challenge.

Participation declines were further influenced by the discontinuation of two p rograms, Tiny Tots Preschool and CIF Hockey, as well as reduced usage at the Skate Park, which is likely attributable to the increased availability and popularity of free alternatives such as the Washington Park Skate Spot.

Despite these challenges, severa l program areas experienced notable participation growth. Open Swim participation increased by 5 2%, Lap Swim by 44 %, Adult Hockey by 20 %, and Open Gym by 6 %. These gains can be attributed to several factors, including the expansion of open swim hours, memb ership pricing models that offer unlimited lap swim access, the closure of a regional roller hockey program in 4S Ranch, and the availability of diverse activities during open gym such as pickleball, basketball, futsal, and volleyball.

Increases in these p rogram areas highlight the importance of enhancing program design to improve perceived value, broaden community appeal, and align offerings with participant expectations.

Park and Facility Rentals
Park and facility rentals demonstrated strong overall revenue performance, increasing by 7.7 %, from $539,669 in FY2024 to $581,419 in FY2025. This growth occurred despite a 15 % reduction in total rental hours, reflecting the financial impact of higher fees and the reclassification of rental users into a simplified and more consistent framework. Key revenue drivers included the implementation of standardized square‑footage pricing models and the transition to a full cost‑recovery structure.

To mitigate abrupt impacts to long ‑standing users, rental groups with e xisting reservations were permitted to continue under prior fee rates through the end of the calendar year on December 31, 2024.

Additionally, school groups that had already booked facilities for the academic year were allowed to maintain their originally reserved rates.

While overall revenue increased, performance varied significantly by facility. Revenue declines were observed at the Park Avenue Community Center, Kit Carson Park Amphitheatre, City pools, and the Escondido Sports Center soccer arenas. Thes e reductions were directly attributable to fee increases for 155
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spaces that had historically been priced well below comparable City facilities and regional market benchmarks.

The Park Avenue Community Center had been particularly underpriced, with some long ‑standing user groups paying as little as $5 per hour prior to the adoption of the new fee structure. Under the revised schedule, the same room is now rented at approximately $46 per hour. Due to limited organizational resources and smaller memberships, seve ral groups relocated to alternative spaces better aligned with their financial capacity. In total, 11 rental groups discontinued use of the facility, resulting in notable reductions in both revenue and room utilization.

Prior to the fee revisions, high sch ool swim and water polo teams, along with private swim teams, represented the primary users of City pool facilities. Although schools were reclassified into a more favorable rental category, fees still increased, prompting school‑based teams to reassess their pool usage.

As a result, several teams reduced or discontinued rentals. Similarly, private swim teams ceased renting City pools in favor of lower‑cost alternatives.

The Escondido Sports Center experienced a 26% decline in soccer arena rental revenue, driven largely by a single user group that significantly reduced usage, from six to seven days per week to two to three days per week, due to increased rental costs. While this reduction resulted in a loss of revenue, it also created opportunities to divers ify facility use, introduce new programming, and reduce reliance on a single dominant renter, thereby supporting improved operational balance.

In contrast, several rental areas generated strong revenue gains, including rooms at the East Valley Community Center, athletic fields, tennis courts, and picnic areas. Across these locations, revenue increased by 10% to 171%, while the number of rentals and total rental hours declined by 12 % to 45%.

This trend reflects user price sensitivity, particularly among organized and repeat rental groups.

The impact of updated tennis court fees was most evident at the Ray Love Tennis Center, where the new fee structure generated more than 15 formal complaints, citing both the comparatively high rates and ongoing maintenance concerns. A recent survey of reservable tennis court pricing is summarized below.

Tennis Courts Fee per Hour
Escondido $25
Oceanside $15.79
Tennis Club of Vista* $10
Lake San Marcos* $10
Carlsbad, Encinitas, Poway, San Marcos, Vista tennis courts or not reservable *Private clubs with annual membership fees.

As shown, Escondido’s reservable public tennis courts are priced higher than regional alternatives; however, many surrounding municipalities do not offer reservable public courts, limiting direct 156
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comparison. While private clubs may offer lower hourly rates, access is often restricted by membership requirements, which differ substantially from City‑operated facilities.

Overall, park and facility rentals demonstrate that higher fees can generate increased revenue, even when accompanied by reduced usage. However, the data also suggests that certain facilities may be priced above what the local market can reasonably absorb. These outcomes underscore the importance of balancing cost recovery objectives wi th market expectations, user affordability, and long ‑term facility utilization.

Permit Fees
Permit fees, which include special events and filming permits, represent the second smallest portion of overall Community Services Department revenue, accounting fo r approximately 2.3 %. Permit pricing is intentionally maintained below full cost recovery levels to encourage community engagement, support mission‑aligned organizations, and promote local economic development.

In addition to permit fees, the City recovers costs associated with special events that require support from Public Works and Public Safety. These costs are billed directly to event organizers for services that may include traffic control, street closures, and event‑specific safety patrols. While most permitted events do not require additional City resources, larger events such as the May and October Street Fairs and the Grape Day 5K typically incur these supplemental service charges.

The Veterans Day Parade was charged for Public Works and Public Saf ety services through FY2024/25.

Beginning in FY2025/26, the event was redesignated as a City‑sponsored event, and the City now assumes all associated Public Works and Public Safety costs.

Administrative Fees
Administrative fees accounted for approximately 5.1% of total Community Services Department revenue in FY2025 and increased by 34.6 % from the prior fiscal year. The most significant contributor to this increase was ballfield lighting fees, which transitioned to a full cost ‑recovery rate of $24 per hour, resulting in a 126% increase within this subcategory. Prior to the updated fee schedule, ballfield lighting was priced at $5 per hour.

Although fees increased substantially, revenue did not quadruple as initially projected. This outcome reflects behaviora l changes among user groups, particularly sports leagues, which became more deliberate in their use of field lighting. Adjustments included earlier game end times and more accurate assessment of actual lighting needs versus perceived necessity. Overall, ba llfield lighting fees across comparable municipal agencies remain generally consistent, as shown below:

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Agency Hourly Fee
Carlsbad $20
Escondido $24
Oceanside $20
Poway $12 + $3 processing fee
San Marcos $21
Vista $17

Processing fees, which are pass‑through charges intended to offset direct costs associated with registration processing and credit card transactions, increased by 3.6% year over year. This increase was anticipated, as processing fees are directly proportional to customer pricing an d overall transactional volume within the City’s registration and reservation system. Escondido’s processing fees remain among the lowest in the industry at 2.85% plus $1.30 per transaction, covering credit card transaction costs and expenses associated with the City’s cloud‑based registration software platform.

No changes were made to youth league administration fees, which are assessed on a per ‑player, per‑season basis to recognized youth sports leagues in lieu of traditional field rental fees. To qualify , leagues must enter into an Athletic Facility Use Agreement and assume responsibility for specified field and facility maintenance tasks. This arrangement transfers select operational responsibilities from Parks staff to the leagues, while providing leagu es with greater control, stewardship, and ownership of their assigned fields.

A recent survey of regional youth league administration fees is summarized below:

Agency Player/Admin Fee
Carlsbad No fee
Escondido $5/player
Oceanside* No fee
Poway No fee
San Marcos $3/player – recreational
$10/player – competitive
+$5/player for nonresidents
Vista $23/player – competitive only
*Previously $56 per league annually, recently eliminated Youth league administration fees are typically intended to offset basic administrative costs associated with field allocations, coordination, equipment, and in some cases maintenance support. Approximately half of neighboring municipalities do not assess such fees. Among those that do, fee structures vary widely, with some differentiating between recreational and competitive play. While certain leagues offer competitive programs, these teams generally represent a relatively small portion of total league participation.
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Donations/Advertising
Donations and Advertising represent the smallest portion of Community Services Department revenue.

This category includes donations, sponsorships, advertising, and concession agreements. In FY2025, revenue in this category declined by approximately 2%, driven primarily by the loss of lease revenue from the Disc Golf Pro Shop (April 2025) and the Escondido Sports Center concessionaire (September 2025), as well as a significant reduction in over‑street banner permits.

Over‑street banner fees were increased to $1,200 to achieve full cost recovery. Since implementation of the revised fee, only two banners have been installed: one internal banner supporting Grand Avenue businesses during construction of Phase 2 of the Grand Avenue Vision Project, and one external banner for the Rotary Club Trout De rby, which had been reserved prior to the fee adjustment. A review of past applications indicates that event organizers have largely shifted away from physical banners in favor of digital marketing platforms. Feedback regarding the updated banner fee has been minimal and generally neutral.

Overall, this revenue category accounts for less than one percent of total departmental revenue. Given the inherently volatile nature of non ‑fee‑based income streams, staff have identified the need for more strategic and sustainable revenue approaches. To address this, the Department has pursued vending solutions across recreational facilities through a competitive Request for Proposals (RFP) process and is actively exploring a department ‑wide sponsorship initiative to stabilize and diversify revenue sources moving forward.

Beneficiary of Service Model
In 2023, the Community Services Department retained a consultant to develop a Beneficiary of Service Model as a framework to support long‑term financial sustainability. Using available data at the time, the model evaluated the cost -of-service delivery in relation to community need and benefit. This approach was designed to align cost ‑recovery and subsidy allocation decisions with insights specific to the Escondido community.

Rather than categorizing services by traditional program areas (e.g. aquatics or senior services), the model groups services by like purpose and level of individual versus community benefit. For example, services may be categorized as private lessons, be ginner classes, or facility rentals. This structure allows the Department to more equitably allocate resources using a “common good” framework and to apply differentiated cost‑recovery targets based on who primarily benefits from the service.

Using this approach, the Department can assign cost ‑recovery percentages across a continuum ranging from highly subsidized, community ‑wide benefit programs to fully cost ‑recoverable, individualized or exclusive services. This framework provides greater flexibility and consistency in determining appropriate fee levels while supporting access to core community services.

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The Beneficiary of Service Model identifies eight service categories under which all programs and services are grouped:
 Drop‑In Programs
 Special and Community Events
 Rentals
 Beginner / Intermediate and Educational Programs
 Advanced / Competitive Programs
 Human and Community Services
 Enrichment Programs
 Personalized Services
These categories are arranged along a spectrum from common good to individualized b enefit, reflecting levels of public benefit and corresponding subsidy. Each category is assigned a target cost‑recovery level, which directly informs fee calculations. The model is designed to be customized to each agency, recognizing unique community characteristics, service priorities, and policy direction.

Following completion of the Beneficiary of Service Model in early 2024, the Community Services Department began preparing for phased implementation. The proposed implementation plan anticipated a three‑year transition period, through 2027, allowing for gradual fee adjustments and adequate time for 160
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public awareness and adaptation. However, in July 2024, City Council direction shifted departmental efforts toward an alternative fee adjustment strategy , and implementation of the Beneficiary of Service Model was paused to align with the Council‑approved approach.

Cost Recovery
Cost recovery calculations can vary significantly among park and recreation agencies, as methodologies differ based on what costs are included. Some agencies exclude expenses such as maintenance or utilities, which can result in higher reported recovery rates. While cost recovery targets typically vary by program type, agencies generally organize services into three broad recovery categories:
 Low Recovery (0–25%): Services with high public benefit or “common good” value, such as general park maintenance, open access amenities, or community events.  Moderate Recovery (26 –50%): Programs that provide both individual and community benefit , including general recreational programming and youth sports.  High Recovery (51 –100%): Services that deliver primarily individualized benefit, such as fitness centers, specialty programs, or golf courses.

The National Recreation and Parks Association (“NRPA”) reports that the national average cost recovery rate for park and recreation agencies is 27.2 %. In recent years, this average has trended upward as agencies face increasing operational costs and decreasing levels of General Fund subsidy. In response, many departments are adopting more structured cost recovery frameworks that emphasize user ‑based revenue while preserving affordable access to essential community recreation amenities such as swimming pools, camps, and general programming.

Across California, there is no established statewide average cost recovery rate for park and recreation services. Rates vary widely and are largely determined by local policy decisions, community priorities, and the balance between individual benefit and the collective pu blic good. Some municipalities establish department‑wide cost recovery targets, such as 40%, allowing staff flexibility to adjust fees in response to participation trends, user demographics, and program demand. In other cases, specific offerings, such as specialty or niche camps, may be assigned a 100% cost recovery target due to their individualized nature.

These approaches are reasonable and reflect the unique needs and values of each community.

For the City of Escondido, the Recreation Division , excluding Older Adult Services and Senior Nutrition , achieved a cost recovery rate of 61.9 % in F Y2025. According to the 2025 NRPA Agency Performance Review, this places the division within the top 15 percent of recreation agencies nationwide. When all divisions within the Community Services Department are included, the departmentwide cost recovery rate for FY2025 is 47.6%. While this places the department in the moderate recovery category, it remains in the thirty ‑seventh percentile nationally, reflecting a strong overall performance relative to peer agencies.

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Resident/Non-Resident Pricing Considerations
Some park and recreation agencies utilize a resident versus non ‑resident differential pricing structure, whereby non‑resident users are charged a higher f ee than residents. Proponents of this approach cite improved taxpayer equity, prioritization of resident access, and enhanced cost recovery as key benefits.

Historically, the City of Escondido has not implemented resident/non ‑resident pricing. Previous discussions identified concerns related to potential administrative inefficiencies, pricing complexity, and equitable access for nearby County residents, which limited further consideration of this model.

Across San Diego County, however, most park and recrea tion agencies employ some form of resident/non‑resident pricing. The specific structure and fee differential varies by agency, often expressed as either a percentage increase or a fixed dollar amount. Typical non‑resident premiums range from 10 – 15% or a flat surcharge of $10 or more, depending on the program type and service level.

An analysis of Community Services Department participation data indicates that program enrollment consists of approximately 79% residents and 21% non‑residents. Participation varies by program area, as outlined below:

Program Area Resident Non-Resident
All Programs 79% 21%
Aquatics 93% 7%
Camps 89% 11%
Recreation Classes 83% 17%
Sports Leagues* 66% 34%
*Adult Roller Hockey, Adult Softball, PAL Basketball, Pickleball, Youth Soccer This data reflects that the vast majority of Community Services programming primarily serves Escondido residents, particularly in aquatics and camps, which demonstrate a strong local participation base. These programs may provide a compelling policy rationale for continued subsidy, especially for priority services such as the Learn‑to‑Swim Program, which delivers significant public safety and community benefit.

Conversely, sports leagues exhibit a higher percentage of non‑resident participation, indicating a broader regional draw. This participation pattern may warrant further consideration of resident/non ‑resident pricing as a means to improve cost recovery while continuing to support program access.

Overall, the participation data suggests that resident/non‑resident pricing could be explored as a strategic opportunity to enhance cost recovery, prioritize Escondido resident access, and maintain balanced participation across programs.

Future Considerations
Based on revenue performance, participation trends, and community feedback following implementation of the 2024 fee update, staff recommends the following four core focus areas to guide operational 162
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decisions. Collectively, these recommendations are intended to balance fiscal sustainability with affordability, access, and responsiveness to community behavior.

1. Implement the Beneficiary of Service Model Using Market‑Median Pricing:

Staff recommends revisiting implementation of the Beneficiary of Service Model with an emphasis on market‑median pricing, rather than consistently targeting top‑of‑market rates. This approach would better align program pricing with the level of individual versus community benefit, while recognizing Escondido’s demonstrated price sensitivity. Applying this model allows for intentional subsidy of high public‑benefit services, while ensuring individualized or exclusive offerings move toward higher cost recovery.

2. Targeted Fee Adjustments for Underutilized Facilities:

Rather than applying broad, department ‑wide adjustments, staff r ecommends targeted pricing strategies for facilities experiencing sustained declines in use, such as portions of the Escondido Sports Center and the Park Avenue Community Center. These adjustments may include restructured rates, alternative pricing models, or pilot strategies designed to stimulate demand, improve utilization, and maximize revenue opportunities without eroding overall cost recovery goals.

3. Annual Market Review and Benchmarking:

Staff recommends formalizing an annual market review process focu sed on comparisons with neighboring municipalities and regional providers. Regular benchmarking will support incremental, data ‑driven fee adjustments, improve pricing predictability for users, and help ensure the City remains competitively positioned while avoiding sudden or disruptive fee changes.

4. Re‑Evaluate High‑Cost, Low‑Demand Programs:

Staff recommends conducting ongoing evaluations of programs with high operating costs and declining or low participation to determine whether restructuring, repurposing , or discontinuation is appropriate. This review process will ensure Department resources are aligned with current community demand, allow for reinvestment in higher ‑impact services, and reduce reliance on programs that no longer reflect evolving recreation trends.

Together, these four recommendation areas establish a strategic framework that supports fiscal responsibility while remaining responsive to affordability, participation behavior, and equitable access.

Summary
This report has outlined a comprehensive evaluation of the Community Services Department’s user fee update, examining revenue performance, participation trends, cost recovery outcomes, and community feedback following implementation of the 2024 fee strategy. While the fee adjustments success fully increased overall revenue and strengthened cost recovery , particularly in park and facility rentals and administrative fees , the data shows modest growth, notable participation declines in price ‑sensitive programs, and varying impacts across facilities and service areas. The report highlights how pricing at or 163
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near the top of the market, combined with economic pressure and changing community behavior, has influenced demand, especially for families, youth programs, and recurring users.

Based on these f indings, staff recommends a more calibrated approach moving forward. Core recommendations include implementing the Beneficiary of Service Model with a market ‑median pricing focus, pursuing targeted fee adjustments for underutilized facilities, establishing an annual market review process, and re ‑evaluating high ‑cost, low ‑demand programs to better align services with current community needs. Collectively, these strategies are intended to balance fiscal sustainability with equitable access, maintain competitive and predictable pricing, and ensure Community Services programming remains responsive, affordable, and reflective of evolving participation trends.

ATTACHMENTS
a. Attachment “1”—2024 CSD Fee Schedule
b. Attachment “2”—Revenue and Participation Data
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Fees Charge Basis Note
Processing/Service/Administrative Fees
1 Processing Fee 2.85% - 3.25% transaction
2 Administrative Fee (activities, teams, park/facility rentals) $1 - $5 transaction 3 Youth Sports League Administrative Fee $5 per player per season 4 Late pick-up Fee (youth programs) $1 minute
5 Late Fee $25 instance
Recreation Programs/Activities
6 Team Registration $200 - $1,500 team/season
7 Drop-in Activities (except skatepark) $5 session
8 Drop-in Activities multipass (except skatepark) $20 - $100 pass 9 Mobile Recreation $50 - $100 hour
10 Recreation Programs (city staff instructed) $5 - $300 program/class/session 11 Recreation Special Events (city staff managed) $5 - $25 event 12 Contract Recreation Classes $10 - $350 class/course [a] 13 Skate Park Discount Card $25 - $50 card
14 Skatepark Drop-in (w/o discount card) $10 session
15 Skatepark Drop-in (w/discount card) $5 session
16 Skatepark Unlimited Annual Pass $200 - $350 pass
17 Aquatic Training Programs (e.g. lifeguard, WSI) $200 - $400 course 18 Learn-to-Swim Program $45 - $125 session
19 Aquatic Programs $5 - $125 activity
20 Queen Califia's Magical Circle Garden Group Tour $5 person Advertising
21 Recreation Guide Printed Ad - Outside Full Back Cover $2,000 placement [b] 22 Recreation Guide Printed Ad - Inside Full Front Cover $1,850 placement [b] 23 Recreation Guide Printed Ad - Inside Full Back Cover $1,850 placement [b] 24 Recreation Guide Printed Ad - Inside Half Front Cover $1,125 placement [b] 25 Recreation Guide Printed Ad - Inside Half Back Cover $1,125 placement [b] 26 Recreation Guide Printed Ad - Interior Full page $1,500 placement [b] 27 Recreation Guide Printed Ad - Interior Half page $875 placement [b] 28 Recreation Guide Printed Ad - Interior 1/4 page $525 placement [b] 29 Recreation Guide Digital Ad - Inside Full Front Cover $1,000 placement [b] 30 Recreation Guide Digital Ad - Inside Half Front Cover $665 placement [b] 31 Recreation Guide Digital Ad - Interior Full page $750 placement [b] 32 Recreation Guide Digital Ad - Inside Half page $550 placement [b] 33 Facility Advertising (banners, signs, stickers) $300 - $5,000 item Permits
34 Film/Photography Permit Fee (student films exempt) $100 application 35 Special Event Permit Fee (Class B) $100 application
36 Special Event Permit Fee (Class C & D) $200 application 37 Special Event Permit Fee (Class E) $400 application
38 Special Equipment/Inflatable/Commercial Catering $25 application 39 Banner Permits $1,000 application
40 Model Rocket Launch Permit $25 application
Merchandise
41 Queen Califia's Magical Circle Garden Merchandise $5 - $50 Item 42 Merchandise $1 - $20 each
Notes
[a]
[b]
City of Escondido
Community Services Department - PROGRAM USER FEES
No savings for multiple add placements.

Activity Description
Contract recreation classes will have a 60/40 split with the City retaining 40% of the revenue. For classes in parks or at the contractor's facility the division will be 70/30, with the City retaining 30% of the revenue.

Program User Fees 1 of 1
Attachment "1"
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Class E Fee Class D Fee (-10%) Class C Fee (-20%) Class B (-30%) Charge Basis Note City Hall Meeting Rooms
43 Mitchell Room (w/kitchen & patio) $125.00 $113.00 $100.00 $88.00 hour (2 min) 44 City Hall Dome Area $100.00 $90.00 $80.00 $70.00 hour (2 min) 45 City Hall Fountain $90.00 $81.00 $72.00 $63.00 hour (2 min) 46 City Hall Training Room 1 $67.00 $60.00 $54.00 $47.00 hour (2 min) Community Centers
47 Mathes Center Meeting Room $70.00 $63.00 $56.00 $49.00 hour 48 Mathes Center Dance/Exercise Room $143.00 $129.00 $114.00 $100.00 hour 49 Washington Park Recreation Building $100.00 $90.00 $80.00 $70.00 hour 50 EVCC Citrus Room $67.00 $60.00 $54.00 $47.00 hour
51 EVCC Grove Room $65.00 $59.00 $52.00 $46.00 hour
52 EVCC Vineyard Room (w/kitchen) $136.00 $122.00 $109.00 $95.00 hour 53 EVCC Dance/Exercise Room $143.00 $129.00 $114.00 $100.00 hour 54 EVCC Gymnasium - Full $200.00 $180.00 $160.00 $140.00 hour 55 EVCC Gymnasium - Half $100.00 $90.00 $80.00 $70.00 hour 56 EVCC Children's Room (w/play area) $86.00 $77.00 $69.00 $60.00 hour 57 PACC Sycamore Room $84.00 $76.00 $67.00 $59.00 hour
58 PACC Maple Room $65.00 $59.00 $52.00 $46.00 hour
59 PACC Cedar Room $65.00 $59.00 $52.00 $46.00 hour
60 PACC Auditorium (w/kitchen) $200.00 $180.00 $160.00 $140.00 hour 61 PACC Oak Room $98.00 $88.00 $78.00 $69.00 hour
62 PACC West Courtyard Gazebo $75.00 $68.00 $60.00 $53.00 hour 63 PACC East Courtyard $128.00 $115.00 $102.00 $90.00 hour 64 PACC Sequioa Room $65.00 $59.00 $52.00 $46.00 hour
Class E (full cost) : Commerical groups, businesses, users affliated with commerical industries, non-Escondido residents, or elected officials conducting political campaign activities or fundraising events.

Proof of Status : In order to meet the classification requirement, proof of status will be requested. This may include one or more, but not limited to an Exemption Determination Letter from the IRS, a list of full organizational membership (to achieve 75% residency), Escondido business license, utility bill, rental/lease agreement with an Escondido address, or other proof that may fulfill the requirement. Branch offices within the city limits shall qualify as Escondido-based residency. Inability to provide proof of status will result in Class E categorization.

Activity Description
City of Escondido
Community Services Department - RENTAL FEES
User Classifications
Class A (FREE) : City of Escondido
Class B (30% discount) : Escondido-based nonprofit organizations with proof of 501(c)(3) status whose membership is comprised of at least 75% Escondido residents; government agencies; and schools (kindergarten trhough college).

Class C (20% discount) : Non-Escondido-based nonprofit organizations or any not-for-profit organization that may have a 501(c)4-11 designation or political organization subject to Section 527 of IRS rules (political party, committee, association, fund, or organization) not conducting fundraising or campaign activities.

Class D (10% discount) : Private parties of Escondido residents that have a valid Escondido address within zip codes 92025, 92026, 92027, or 92029.

Rental Fees 1 of 3
Attachment "1"
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Class E Fee Class D Fee (-10%) Class C Fee (-20%) Class B (-30%) Charge Basis Note Class E (full cost) : Commerical groups, businesses, users affliated with commerical industries, non-Escondido residents, or elected officials conducting political campaign activities or fundraising events.

Proof of Status : In order to meet the classification requirement, proof of status will be requested. This may include one or more, but not limited to an Exemption Determination Letter from the IRS, a list of full organizational membership (to achieve 75% residency), Escondido business license, utility bill, rental/lease agreement with an Escondido address, or other proof that may fulfill the requirement. Branch offices within the city limits shall qualify as Escondido-based residency. Inability to provide proof of status will result in Class E categorization.

Activity Description
City of Escondido
Community Services Department - RENTAL FEES
User Classifications
Class A (FREE) : City of Escondido
Class B (30% discount) : Escondido-based nonprofit organizations with proof of 501(c)(3) status whose membership is comprised of at least 75% Escondido residents; government agencies; and schools (kindergarten trhough college).

Class C (20% discount) : Non-Escondido-based nonprofit organizations or any not-for-profit organization that may have a 501(c)4-11 designation or political organization subject to Section 527 of IRS rules (political party, committee, association, fund, or organization) not conducting fundraising or campaign activities.

Class D (10% discount) : Private parties of Escondido residents that have a valid Escondido address within zip codes 92025, 92026, 92027, or 92029.

Picnic Areas
65 Jesmond Dene Pepper Tree (12-50 people) $207.00 $186.00 $166.00 $145.00 Reservation [c] 66 Jesmond Dene Pine Tree (12-50 people) $207.00 $186.00 $166.00 $145.00 Reservation [c] 67 KCP El Arroyo 1 (12-200 people) - Mini-Gazebo $230.00 $207.00 $184.00 $161.00 Reservation 68 KCP El Arroyo 2 (12-200 people) - Gazebo $230.00 $207.00 $184.00 $161.00 Reservation 69 KCP El Arroyo 1 & 2 (201-600 people) $345.00 $311.00 $276.00 $241.00 Reservation 70 KCP Tree Lake 1 (12-80 people) - Gazebo $230.00 $207.00 $184.00 $161.00 Reservation 71 KCP Tree Lake 2 (12-50 people) $207.00 $186.00 $166.00 $145.00 Reservation 72 KCP Tree Lake 3 (12-50 people) $207.00 $186.00 $166.00 $145.00 Reservation 73 KCP Ray Love (12-50 people) $207.00 $186.00 $166.00 $145.00 Reservation 74 KCP North Picnic Area (12-50 people) $207.00 $186.00 $166.00 $145.00 Reservation 75 KCP Adobe Circle (25 people) $115.00 $104.00 $92.00 $81.00 Reservation 76 Grove Park Gazebo (20 people) $115.00 $104.00 $92.00 $81.00 Reservation Specialized Park Facilities
77 Group Fitness Activity Fee $35.00 $32.00 $28.00 $25.00 hour 78 Tennis Court Fee (KCP, MVP, WP) $35.00 $32.00 $28.00 $25.00 per court per hour [d] 79 Pool Rental (JSP, WPP - include 2 lifeguards) $200.00 $180.00 $160.00 $140.00 hour (2 min) 80 Queen Califia's Magical Circle Garden $1,500.00 $1,500.00 $1,500.00 $1,500.00 reservation (2 max) [e] 81 Mayflower Dog Park Group Pen Fee $30.00 $27.00 $24.00 $21.00 hour/pen Kit Carson Park Amhitheatre
82 KCP Amphitheatre $250.00 $225.00 $200.00 $175.00 hour 83 KCP Amphitheatre Parking lot (only) $150.00 $135.00 $120.00 $105.00 reservation Escondido Sports Center
84 Soccer/Hockey Arena $115.00 $104.00 $92.00 $81.00 hour 85 Mini-Soccer Arena $75.00 $68.00 $60.00 $53.00 hour
86 Skate Park $160.00 $144.00 $128.00 $112.00 hour
Rental Fees 2 of 3
Attachment "1"
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Class E Fee Class D Fee (-10%) Class C Fee (-20%) Class B (-30%) Charge Basis Note Class E (full cost) : Commerical groups, businesses, users affliated with commerical industries, non-Escondido residents, or elected officials conducting political campaign activities or fundraising events.

Proof of Status : In order to meet the classification requirement, proof of status will be requested. This may include one or more, but not limited to an Exemption Determination Letter from the IRS, a list of full organizational membership (to achieve 75% residency), Escondido business license, utility bill, rental/lease agreement with an Escondido address, or other proof that may fulfill the requirement. Branch offices within the city limits shall qualify as Escondido-based residency. Inability to provide proof of status will result in Class E categorization.

Activity Description
City of Escondido
Community Services Department - RENTAL FEES
User Classifications
Class A (FREE) : City of Escondido
Class B (30% discount) : Escondido-based nonprofit organizations with proof of 501(c)(3) status whose membership is comprised of at least 75% Escondido residents; government agencies; and schools (kindergarten trhough college).

Class C (20% discount) : Non-Escondido-based nonprofit organizations or any not-for-profit organization that may have a 501(c)4-11 designation or political organization subject to Section 527 of IRS rules (political party, committee, association, fund, or organization) not conducting fundraising or campaign activities.

Class D (10% discount) : Private parties of Escondido residents that have a valid Escondido address within zip codes 92025, 92026, 92027, or 92029.

Sports Fields/Tournaments
87 Field Usage $35.00 $32.00 $28.00 $25.00 hour
88 Ryan Park Tournament Field Use $275.00 $248.00 $220.00 $193.00 day Notes
[c] Added as a future rental space.
[d] Includes pickleball, needs to entire court if dual striped. [e] No discounts offered, flat rate.

Rental Fees 3 of 3
Attachment "1"
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Fees Charge Basis Note
Facility Rental Add-on [f]
89 Facility Cleaning/Damage Deposit $250 reservation
90 City Hall Staffing Fee (non-operational hours) $75 hour [g] 91 CSD Staffing Fee (non-operational hours) $50 hour [g] 92 Additional Pool Lifeguard $25 per guard per hour
93 Light Fees - Field/Sports Rentals $24 per field per hour 94 Baseball/Softball Tournament Field Deposit $60 field 95 Baseball/Softball Tournament Field Preparation $25 field 96 Baseball/Softball Tournament Maintenenace Staffing Fee cost recovery hour [h] 97 Ryan Park Tournament Maintenance Staffing Fee cost recovery hour [h] 98 Ryan Park Tournament field deposit $100 field
Notes
[f]
[g]
[h]
City of Escondido
Community Services Department - ADD-ON RENTAL FEES
Activity Description
These fees are not subject to classification discounts.

Inclusive of holiday hours.

Costs to be provided by PW following each event.

Add-on Rental Fees 1 of 1
Attachment "1"
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Programs and Activities Description
FY2026
Revenue FYTD
FY2025
Revenue
FY2025
Participants
FY2024
Revenue
FY2024
Participants
$ Revenue
Change 24/25
% Revenue
Change 24/25
# Participant
Change 24/25
% Participant
Change 24/25
FY2023
Revenue
FY2023
Participants
Adult Softball Adult Softball Program (teams) 55,594 97,685 224 88,436 224 9,249 10% - 0% 81,973 217 Hockey - Sports Center Adult Hockey Program (teams) 135,059 196,122 174 163,608 169 32,514 20% 5 3% 137,394 96 Hockey CIF High School Hockey Program (teams) - - - 8,500 6 (8,500) -100% (6) -100% 11,625 6 Kit Carson Skate Park open skate sessions 2,059 11,565 266 27,295 945 (15,730) -58% (679) -72% 36,154 1,962 Lap Swim morning lap swim 5,961 9,041 2,591 11,210 1,801 (2,169) -19% 790 44% 8,367 338 Learn to Swim Program swim lessons 46,006 92,277 7,162 73,618 8,134 18,659 25% (972) -12% 42,066 1,127 Open Gym EVCC gym drop-in play 17,695 30,375 6,053 28,436 5,710 1,939 7% 343 6% 25,659 3,120 Open Swim pool open swim 6,696 6,808 1,440 4,683 948 2,125 45% 492 52% 4,327 134 Recreation Classes recreation classes/activities 271,569 489,677 9,056 479,377 9,705 10,300 2% (649) -7% 347,111 7,500 Soccer - Sports Center Youth Soccer Program 92,277 113,415 1,036 94,493 1,147 18,923 20% (111) -10% 115,489 1,309 Summer Day Camp Programs Summer/Mini Camps 14,753 98,772 456 105,282 474 (6,510) -6% (18) -4% 100,429 599 Tiny Tots preschool program 248 134 - 56,340 106 (56,206) -100% (106) -100% 97,359 290 Youth Sports PAL Basketball Program 20,979 21,810 326 21,554 395 257 1% (69) -17% 26,504 416 668,896 1,167,680 28,784 1,162,830 29,764 4,850 0.4% (980) -3% 1,034,458 17,114 Park and Facility Rentals Description
FY2026
Revenue FYTD
FY2025
Revenue
FY2025
Rental Hrs
FY2024
Revenue
FY2024
Rental Hrs
$ Revenue
Change 24/25
% Revenue
Change 24/25
# Rental Hrs
Change 24/25
% Rental Hrs
Change 24/25
FY2023
Revenue
FY2023
Rental Hrs
Amphitheater Use KCP Amphitheater rental - 400 - 1,460 4 (1,060) -73% (4) -100% 3,706 45 Building Rentals Cit Hall rentals 1,632 5,236 10 3,453 15 1,783 52% (5) -33% 8,341 104 EVCC Rentals EVCC room rentals 82,705 106,185 2,160 96,475 2,458 9,709 10% (298) -12% 128,801 3,748 Senior Center Rentals PACC room rentals 1,128 23,884 628 26,969 940 (3,086) -11% (313) -33% 45,109 977 Field Rentals Athletic field space 36,885 31,952 1,190 11,802 1,222 20,150 171% (32) -3% 12,616 1,069 Hockey Arena Rentals ESC hockey rinks 39,896 55,583 829 33,112 841 22,471 68% (12) -1% 32,775 839 Park/Picnic Rentals picnic areas 32,875 60,471 309 53,598 386 6,873 13% (77) -20% 55,874 331 Tennis Court Fees Ray Love Tennis Center 10,012 16,496 1,135 9,299 2,078 7,197 77% (943) -45% 10,304 1,815 Soccer Arena Rentals ESC soccer arenas 97,794 96,313 2,584 130,624 2,473 (34,311) -26% 111 4% 136,573 2,843 Soccer Tournaments Ryan Park (tournaments) 26,414 58,869 13 38,410 9 20,459 53% 4 44% 18,445 7 Softball Tournaments KCP softball fields (tournaments) 62,315 54,855 16 55,228 16 (374) -1% - 0% 36,789 11 Swimming Pool Rentals Washingon Park and James Stone Pools 24,743 71,178 511 79,240 649 (8,062) -10% (138) -21% 119,904 821 416,399 581,419 9,385 539,669 11,092 41,751 7.7% (1,707) -15% 609,237 12,610 Permit Fees Description
FY2026
Revenue FYTD
FY2025
Revenue
FY2025
Permits
FY2024
Revenue
FY2024
Permits
$ Revenue
Change 24/25
% Revenue
Change 24/25
# Permit
Change 24/25
% Permit
Change 24/25
FY2023
Revenue
FY2023
Permits
Special Events/Film film/special event permits 5,925 8,200 55 5,422 47 2,779 51% 8 17% 6,467 55 Special Event Reimbursement Fees police, public works fee reimbursement 20,323 36,017 - 27,490 - 8,527 31% - N/A 23,699 - 26,248 44,217 55 32,912 47 11,306 34.4% 8 17% 30,166 55 Adminstrative Fees Description
FY2026
Revenue FYTD
FY2025
Revenue
FY2025
Permits
FY2024
Revenue
FY2024
Permits
$ Revenue
Change 24/25
% Revenue
Change 24/25
FY25 v FY23
$ Diff
FY25 v FY23
% Diff
FY2023
Revenue
FY25 v FY22
% Diff
Processing Fees fees to cover direct costs 27,261 47,801 N/A 46,140 N/A 1,661 4% 7,901 20% 39,900 27% Ballfield Light Fees fees to ballfield lighting 149,342 61,338 N/A 27,099 N/A 34,239 126% 26,324 75% 35,013 165% Youth League Admin Fees admin player fee per registration 14,910 18,150 N/A 21,360 N/A (3,210) -15% (3,885) -18% 22,035 -9% 191,513 127,289 - 94,599 - 32,690 34.6% 96,948 58% Donations/Advertising Description
FY2026
Revenue FYTD
FY2025
Revenue
FY2025
Ads Sold
FY2024
Revenue
FY2024
Ads Sold
$ Revenue
Change 24/25
% Revenue
Change 24/25
# Ads
Change 24/25
% Ads
Change 24/25
FY2023
Revenue
FY2023
Ads Sold
Recreation Guide Advertising Advertisments in Rec Guide - - - - - - 0% - 0% - 1 Senior Meal Payments senior meal donations 6,332 9,894 N/A 9,856 N/A 38 0% N/A N/A 9,449 N/A Senior Van Fee senior transportation donations 466 405 N/A 258 N/A 147 57% N/A N/A 204 N/A Advertising/Sponsorships sponsorship/concessions 2,842 5,800 N/A 12,600 N/A (6,800) -54% N/A N/A 12,600 N/A 9,640 16,099 22,714 (6,615) -29.1% - 0% 22,253 Fiscal Year Totals
FY2026 FYTD
Revenue
FY2025
Revenue
FY26 v FY25
% Diff
FY2024
Revenue
FY25 v FY24
$ Diff
FY25 v FY24
% Diff
FY25 v FY23
$ Diff
FY25 v FY23
% Diff FY2023
FY25 v FY22
% Diff
1,286,448 1,936,704 -34% 1,852,723 72,675 3.9% 143,643 8% 1,793,061 15% Contract Agreement Description FY2026 FY2025 FY2024 $ % FY2023 On Track Before/After School Program N/A 1,000,012 1,161,255 (161,243) -14% 1,161,645 - 1,000,012 1,161,255 (161,243) -13.9% 1,161,645 Total Revenue (excluding contract agreements)
Attachment "2"
170
Item11.

Programs and Activities Description
Adult Softball Adult Softball Program (teams)
Hockey - Sports Center Adult Hockey Program (teams)
Hockey CIF High School Hockey Program (teams)
Kit Carson Skate Park open skate sessions
Lap Swim morning lap swim
Learn to Swim Program swim lessons
Open Gym EVCC gym drop-in play
Open Swim pool open swim
Recreation Classes recreation classes/activities
Soccer - Sports Center Youth Soccer Program
Summer Day Camp Programs Summer/Mini Camps
Tiny Tots preschool program
Youth Sports PAL Basketball Program
Park and Facility Rentals Description
Amphitheater Use KCP Amphitheater rental
Building Rentals Cit Hall rentals
EVCC Rentals EVCC room rentals
Senior Center Rentals PACC room rentals
Field Rentals Athletic field space
Hockey Arena Rentals ESC hockey rinks
Park/Picnic Rentals picnic areas
Tennis Court Fees Ray Love Tennis Center
Soccer Arena Rentals ESC soccer arenas
Soccer Tournaments Ryan Park (tournaments)
Softball Tournaments KCP softball fields (tournaments)
Swimming Pool Rentals Washingon Park and James Stone Pools Permit Fees Description
Special Events/Film film/special event permits
Special Event Reimbursement Fees police, public works fee reimbursement Adminstrative Fees Description
Processing Fees fees to cover direct costs
Ballfield Light Fees fees to ballfield lighting
Youth League Admin Fees admin player fee per registration Donations/Advertising Description
Recreation Guide Advertising Advertisments in Rec Guide Senior Meal Payments senior meal donations
Senior Van Fee senior transportation donations
Advertising/Sponsorships sponsorship/concessions
Fiscal Year Totals
Contract Agreement Description
On Track Before/After School Program
Total Revenue (excluding contract agreements)
FY2022
Revenue
FY2022
Participants
FY2021
Revenue
FY2021
Participants
FY2020
Revenue Notes/Trends
74,934 206 26,074 125 43,700 82,500 76 28,263 24 39,799 8,125 7 - - 14,125 program ended 2024 68,850 2,688 77,558 1,957 47,499 closed September 2025 9,550 449 2,641 127 - 83,689 1,653 65,043 1,423 16,987 21,230 3,100 3,438 435 15,052 6,715 132 6,534 74 2,222 284,570 6,450 131,655 2,438 130,206 fee set by contract instructor 91,519 1,309 37,578 494 46,254 62,818 436 440 - 41,971 FY24 9-weeks vs FY 25 8-weeks 80,646 260 41,155 200 86,891 program ended FY2024 27,472 542 50 - 13,211 partnership with EPD 902,618 17,308 420,430 7,297 497,918 FY2022
Revenue
FY2022
Rental Hrs
FY2021
Revenue
FY2021
Rental Hrs
FY2020
Revenue Notes/Trends
3,005 39 383 11 992 Patio Playhouse lease May-Oct 8,253 63 (1,563) - 9,408 115,881 2,931 25,864 443 58,851 16,467 438 128 7 33,513 16,896 1,455 18,874 602 7,371 34,314 854 15,554 251 19,114 43,795 310 13,686 74 23,522 5,859 1,408 2,525 319 3,512 94,680 2,692 47,292 674 49,998 21,895 9 17,980 5 18,175 56,404 17 13,519 8 33,922 233,483 879 210,195 643 104,929 650,932 11,095 364,435 3,036 363,305 FY2022
Revenue
FY2022
Permits
FY2021
Revenue
FY2021
Permits
FY2020
Revenue Notes/Trends
5,695 58 5,500 36 6,000 24,864 - - - not included in official CSD revenue 30,559 58 5,500 36 6,000 FY2022
Revenue
FY25 v FY21
% Diff
FY2021
Revenue
FY25 v FY20
% Diff
FY2020
Revenue Notes/Trends
37,679 227% 14,605 361% 10,361
23,131 180% 21,944 84% 33,406
19,975 175% 6,610 1% 17,910
80,786 195% 43,158 106% 61,677
FY2022
Revenue
FY2022
Ads Sold
FY2021
Revenue
FY2021
Ads Sold
FY2020
Revenue Notes/Trends
875 2 1,000 - - 11,940 N/A 2,489 N/A 8,186
181 N/A - N/A 2,027 12,600 N/A 6,539 N/A 9,112
25,596 10,028 19,325
FY2022
FY25 v FY21
% Diff FY2021
FY25 v FY20
% Diff FY2020 Notes/Trends
1,690,490 130% 843,551 104% 948,225 Excludes Contract Agreements FY2022 FY2021 FY2020 Notes/Trends
81,332 7,277 147,727 Not part of user fee schedule 81,332 7,277 147,727
Attachment "2"
171
Item11.

KEY-

CONSENT CALENDAR CURRENT BUSINESS

PUBLIC HEARING WORKSHOP PROCLAMATION
5/13/2026
PROCLAMATIONS - 2026 NATIONAL PUBLIC WORKS' WEEK, NATIONAL BUILDING SAFETY MONTH, MENTAL HEALTH AWARENESS MONTH, ECONOMIC

DEVELOPMENT MONTH
CONSENT CALENDAR - (D. SHULTZ) - TREASURER’S INVESTMENT REPORT FOR THE QUARTER ENDED MARCH 31, 2026 CONSENT CALENDAR - (D. SHULTZ) - THE CITY OF ESCONDIDO'S INVESTMENT POLICY CONSENT CALENDAR - (C. MCKINNEY) - HERITAGE GARDEN
CONSENT CALENDAR - (K. SNYDER) - AWARD OF CONTRACT FOR CONSTRUCTION OF WESTSIDE PARK SKATE SPOT PROJECT CONSENT CALENDAR - (K. SNYDER) - APPROVE PROPOSED SAN DIEGO GAS AND ELECTRIC EASEMENTS AT 272 E. VIA RANCHO PARKWAY CONSENT CALENDAR - (K. SNYDER) - REQUEST APPROVAL FOR CONTRACT AMENDMENT TO THE PUBLIC IMPROVEMENT WITH PALM ENGINEERING

CONSTRUCTION COMPANY, INC FOR THE MOUNTAIN VIEW PARK PICKLEBALL COURT PROJECT CONSENT CALENDAR - (K. SNYDER) - FIRST AMENDMENT TO THE PROFESSIONAL SERVICE CONTRACT WITH NV5 INC - Request the City Council adopt Resolution No. 2026-62 authorizing the Mayor to execute the First Amendment to the Consulting Services Agreement with NV5, Inc in the amount of $200,000 for on-call Building Plan review and Inspection Services.

CONSENT CALENDAR - (K. SNYDER) - SECOND AMENDMENT TO THE PROFESSIONAL SERVICE CONTRACT WITH INTERWEST CONSULTING GROUP - Request the City Council approve Resolution No. 2026-63 authorizing the Mayor to execute the Second Amendment to the Consulting Services Agreement with Interwest Consulting Group, Inc. in the amount of $550,000 for On-Call Building Plan Review and Inspection Services.

CONSENT CALENDAR - (D. PETERSON) - NOTICE OF COMPLETION FOR THE EMERGENCY TRUNK SEWER REPAIR - Request the City Council adopt Resolution No. 2026-51, authorizing the Director of Utilities to file a Notice of Completion for the Emergency Repair of the Escondido Trunk Sewer Main.

CURRENT BUSINESS - (Z. BECK) - BOARD AND COMMISSION INTERVIEWS RENT REVIEW BOARD HEARING - (K. SNYDER) - SHORT-FORM RENT INCREASE APPLICATION FOR GREENCREST MOBILEHOME PARK RENT REVIEW BOARD HEARING - (K. SNYDER) - SHORT-FORM RENT INCREASE APPLICATION FOR EASTWOOD MEADOWS MOBILEHOME PARK PUBLIC HEARING - (D. PETERSON) - 2025 URBAN WATER MANAGEMENT PLAN - Request the City Council adopt Resolution No. 2026-XX, approving the 2025 Urban Water Management Plan (UWMP).

PUBLIC HEARING - (J. GOULART) - AMENDMENT TO LOCAL ENCAMPMENT ORDINANCE PUBLIC HEARING - (K. PLUNKETT) - FIREWORKS ORDINANCE - It is requested that the City Council approve Ordinance No. 2026-06 regarding fireworks regulations. The purpose of the ordinance is to implement regulations, pursuant to the City's police power on the operation and use of fireworks; to promote the public health and safety; and to prevent fire risks, noise CURRENT BUSINESS - (J. SCHOENECK) - THE DOWNTWON ESCONDIDO BENEFIT IMPROVEMENT DISTRICT - Request the City Council approve Resolution 2026-66 authorizing the City Manager to sign the petition and ballot and other documents for all City-owned properties in support of the Downtown Escondido Property Business Improvement District.

CURRENT BUSINESS - (T. BATSON) - EMERGENCY MEDICAL SERVICES USER FEE UPDATE - Request the City Council provide direction regarding Emergency Medical Services (EMS) User Fees
CURRENT BUSINESS - (K.SNYDER) – DEVELOPMENT SERVICE FEES UPDATE AND REQUEST FOR CHANGES - Request the City Council receive and file the Development Service Fees update and request for any changes if necessary.

172
Item12.

KEY-

CONSENT CALENDAR CURRENT BUSINESS

PUBLIC HEARING WORKSHOP PROCLAMATION
5/20/2026

PROCLAMATION - WATER AWARENESS MONTH
PRESENTATION - "LOVE WATER, SAVE WATER" 4TH GRADE POSTER CONTEST FINALISTS' RECOGNITION PUBLIC HEARING - (K SNYDER) - 2026-2027 ANNUAL ACTION PLAN FOR THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (“HUD”) FUNDING FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (“CDBG”) PROGRAM- Request the City Council conduct a public hearing to solicit and consider citizen input on the FY 2026-2027 HUD Annual Action Plan for the use of CDBG funds; and Adopt resolution 2026-xxx approving Fiscal Year 2026-2027 HUD Annual Action Plan for use of CDBG Funds, conditionally commit funds to projects, authorize the Director of Community Development to execute contracts as appropriate and approve the submittal of the FY 2026-2027 Annual Action Plan to HUD.

CURRENT BUSINESS - (C.HOLMES) - FISCAL YEAR 2026/27 OPERATING BUDGET BRIEFING - Request the City Council provide direction regarding the Fiscal Year 2026/27 Operating Budget.

WORKSHOP - (V. BERNABEO) - PRELIMINARY FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM AND BUDGET, FISCAL YEARS 2026/27-2030/31 5/27/2026 - NO MEETING (MEMORIAL DAY)

173
Item12.