Agenda packet — Solana Beach City Council, March 9, 2022 (part 3 of 3)

SOUTH NARDO AVE & STEVENS AVE

REVITALIZING SOLANA HIGHLANDS

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PREPARED BY,
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COASTAL COMMISSION PERMIT NO.
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CITY OF SOLANA BEACH ENGINEERING DEPARTMENT DRAWING NO.

IMPROVEMENT PLANS FOR
701S NARDOAVE

SOUTH NARDO A VE & STEVENS A VE

REVITALIZING SOLANA HIGHLANDS

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SHEET B OF 8
PLSA 1782
RESOLUTION 2022-006

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLANA

BEACH, CALIFORNIA, CONDITIONALLY APPROVING A

DEVELOPMENT REVIEW PERMIT MODIFICATION AND STRUCTURE

DEVELOPMENT PERMIT WAIVER FOR THE PREVIOUSLY

APPROVED SOLANA HIGHLANDS RESIDENTIAL COMMUNITY AND
AFFORDABLE SENIOR HOUSING PROJECT AT 661-781 SOUTH
NARDO AVENUE AND 821 STEVENS AVENUE.

APPLICANT: H.G. Fenton
CASE NO.: DRP Mod 2020-002
WHEREAS, H.G. Fenton (hereinafter referred to as “Applicant”) submitted an application for a Development Review Permit (DRP), Structure Development Permit (SDP), Affordable Housing Plan, Density Bonus with Development Standards Waiver, and Fee Waiver subject to Title 17 (Zoning), of the Solana Beach Municipal Code (SBMC); and WHEREAS, the Applicant also requested approval of a Vesting Tentative Parcel Map (VTPM) which would modify the property from three lots to two lots; and WHEREAS, at the duly and properly noticed public hearing held on December 5, 2018, and the continued public hearing held on December 17, 2018, the City Council received and considered evidence concerning the proposed application as revised; and WHEREAS, the public hearings were conducted pursuant to the provisions of Solana Beach Municipal Code Section 17.72.030; and
WHEREAS, the City Council of the City of Solana Beach certified the Final Environmental Impact Report (FEIR), and adopted a Mitigation Monitoring and Reporting Program (MMRP) and Findings of Fact for the Solana Highlands Revitalization Project (the “Project”) in accordance with the California Environmental Quality Act and the State CEQA Guidelines via Resolution 2018-131; and
WHEREAS, the Solana Beach City Council approved a Development Review Permit (DRP), Structure Development Permit (SDP), and Vesting Tentative Parcel Map (VTPM) and all related entitlements to construct the Project under Resolution 2018-132; and WHEREAS, following City Council approval in 2018, the Applicant obtained California Coastal Commission approval of Coastal Development Permit # 06-19-0109 for the Project in May 2019; and
WHEREAS, following Coastal Commission approval, the Applicant initiated preparation of construction and engineering plans and submitted applications for ministerial building permits to the City in December 2019 for certain building, grading and public improvement elements of the Project; and
Resolution 2022-006
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WHEREAS, City Staff and the Applicant coordinated on the permit processing effort to discuss and review comments on the Project plans intermittently throughout 2020 until processing efforts were slowed / hampered by COVID-19-related restrictions and protocols and related staff work modifications; and
WHEREAS, during 2020 and continuing until the present time, input from the community was solicited by the Applicant on several key Project-related topics including landscaping, traffic calming measures and Applicant-initiated revisions to Buildings 13, 19 (Clubhouse) and 24; and
WHEREAS, in April 2021, the Applicant submitted a formal application to modify discrete elements of the previously approved Project (DRP/SDP 17-14-29) to Buildings 13, 19 (Clubhouse), and 24 and to finalize the Project landscape plan, traffic calming plan, and to request additional time to complete the onsite parking management plan; and WHEREAS, the Applicant has stated that their intent with the Project modifications is to ensure that each element remains consistent with the goals and intent of City Councilimposed Conditions of Approval contained in Resolution 2018-132; and WHEREAS, the Applicant requests consideration of a modification of the City Council Condition of Approval requiring that Building 13 be lowered by six (6) inches from the revised story pole plan elevation submitted October 2, 2018, limiting the maximum elevation of building 13 to 134.9 MSL. The Applicant requests the condition be revised to lower the maximum building height of the easterly 47 feet of Building 13 to 130.5 MSL and allow the remaining westerly approximately 144’ feet of Building 13 to be constructed to the height of 139.9’ MSL as originally depicted and certified by story pole certification dated 6/14/18 and waive the story pole requirement for this modification as no new view impairment would occur; and
WHEREAS, the Applicant requests consideration of a modification to Building 19 (Clubhouse) on three sides to allow a second-floor balcony, open on three sides with a roof, and an exterior staircase, which would project outside of the previously permitted horizontal envelope and waive the story pole requirement for these modifications as no new view impairments would occur; and
WHEREAS, the Applicant requests consideration of a modification to the site plan to shift Building 24 approximately 60’ feet east and waive the story pole requirement for this modification as no new view impairment would occur; and WHEREAS, the Applicant requests consideration of a modification to City Council Condition of Approval requiring submittal of an onsite Parking Plan to the City Manager on or before March 1, 2020 to allow additional time to develop the parking plan and submit the onsite Parking Management Plan to the City Manager on or before September 1, 2023; and
WHEREAS, the Applicant requests consideration of refinements to the originally Resolution 2022-006
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approved traffic calming plan reflecting an iterative review process with the community and the input of the City Engineer and the Solana Beach Fire Department; and WHEREAS, the Applicant requests consideration of a modification of a portion of City Council Condition of Approval XXVI requiring separate City Council approval of a Final “Conceptual” Landscape Plan. The Applicant requests that a Final Landscape Plan be approved by the City Council essentially skipping an interim approval of a Final “Conceptual” Landscape Plan. The Applicant also requests that the requirement for 10, 84-inch box trees be removed from the Project; and
WHEREAS, the above described six (6) proposed modifications requested by the Applicant are refinements to the approved Project that are the result of ongoing dialogue with the community and do not change the fundamental elements of the Project previously approved by the City Council on December 17, 2018 including the number of residential units or parking spaces to be constructed which remain unchanged from 2018; and WHEREAS, City Council Resolution 2018-131 and Resolution 2018-132 remain intact, relevant and applicable to the Project modifications unless otherwise expressly modified herein; and
WHEREAS, this new Resolution is intended to supplement, and not replace, the original approving Resolution 2018-132 and has been intentionally streamlined to focus only on the Project modifications in an effort to provide clarity and avoid unnecessary duplication and redundancy; and
WHEREAS, at the duly and properly noticed public hearing held on March 9, 2022 the City Council received and considered evidence concerning the proposed Project modifications; and
WHEREAS, the public hearing was conducted pursuant to the provisions of Solana Beach Municipal Code Section 17.72.030; and
WHEREAS, this decision is based upon the oral and written evidence presented at the hearing, and any information the City Council gathered by viewing the site and the area as disclosed at the hearing.

NOW THEREFORE, the City Council of the City of Solana Beach, California, does resolve as follows:

1. That the foregoing recitations are true and correct.

2. That an Environmental Impact Report (EIR) was prepared for this Project in conformance with the California Environmental Quality Act of 1970 (CEQA). The EIR was prepared as a Project EIR pursuant to Section 15161 of the State CEQA Guidelines. The FEIR was contained in two volumes and consists of the following parts plus the Findings of Fact approved by the City Council under Resolution 2018- 131 on December 17, 2021. Following Project approval by the City Council, a Resolution 2022-006
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Notice of Determination (Section 15375) was filed by the City with the San Diego County Clerk.

The modifications to the Project do not raise any new environmental issues or increase the level of impact previously disclosed in the Final EIR Certified by the City Council in December 2018 under Resolution 2018-131. Therefore, no new or subsequent environmental review is required due to the scope and nature of the modifications as proposed, pursuant to the State CEQA Guidelines Section 15162.

3. That the Applicant request for a DRP Modification and SDP Waiver for the above described modifications to the approved Solana Highlands residential development Project conditionally approved based upon the following Findings and subject to the following Conditions:

4. FINDINGS
Based on the totality of the record, the City Council makes the following findings:

A. In accordance with Section 17.68.040 (Development Review Permit) of the City of Solana Beach Municipal Code, the City Council finds the following:

I. The proposed Project modifications are consistent with the General Plan and all applicable requirements of SBMC Title 17 (Zoning Ordinance), including special regulations, overlay zones and specific plans.

General Plan Consistency: The proposed Project modifications are consistent with the General Plan, which designates the property as High Density Residential (HR). Multi-family residential development under this category will range between 13 and 20 dwelling units per acre. The approved Project includes 260 residential units which equates to 19.4 dwelling units per acre. The proposed Project modifications remain consistent with the General Plan, which designates the property as High Density Residential (HR) and remain consistent with General Plan policies in the City’s Land Use (LU) Element for residential land uses.

II. The Project modifications remain consistent with General Plan programs and goals in the City’s 6th Cycle Housing Element, including regional housing needs assessment / local share goals and affordable housing goals. The proposed Project modifications remain compliant with the development review criteria set forth in Solana Beach Municipal Code Section 17.68.040.F:
(1) Relationship with Adjacent Land Uses: The development shall be designed in a manner compatible with and where feasible, complimentary to existing and potential development in the immediate vicinity of the project site. Site planning on the perimeter of the development shall give consideration to the protection of Resolution 2022-006
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surrounding areas from potential adverse effects, as well as protection of the property from adverse surrounding influences.

No significant adverse effects upon neighboring properties have been identified or are anticipated to occur from the Project implementation, and the Project has been extensively redesigned to protect view impacts. As conditioned, the proposed Project gives consideration to the protection of surrounding areas from potential adverse effects and provides protection of the property from adverse surrounding influences. Additionally, the City Council has certified the FEIR for this Project and has found that Project impacts either will not occur, will be less than significant, or will be less than significant with mitigation in all the topic areas analyzed. (2) Building and Structure Placement: Buildings and structures shall be sited and designed in a manner which visually and functionally enhances their intended use.

The Project includes a total of 24 buildings including one affordable senior housing building (Building 25) and one clubhouse/leasing center (Building 19). All parking would be provided onsite in either the form of a garage or surface parking including covered and uncovered and includes 233 garages, 22 covered spaces and 270 open/guest spaces.

Fifteen of the 24 buildings would be two stories in height and nine of the Buildings would be three stories in height. In general, the buildings located along South Nardo Avenue would be two stories and the buildings that are internal to the site would be three stories.

The affordable senior building would also be three stories and is located at the southeast corner of the site.

Project amenities on site would include a recreation
facility/clubhouse building and associated recreation facilities such as a pool, spa, barbecue areas, walking paths, and passive usable open space. Additionally, the Project would include a small private park along South Nardo Avenue to reduce effects to public and private views in proximity to the existing greenspace on site.

The SBMC includes development standards for high density residential development based on the zone in which the Project is located, including required setbacks, maximum FAR, and building height. The proposed Project modifications mee or exceeds all required setbacks, and is below the maximum allowable FAR.

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Required parking and landscaping standards are contained in the City’s Off Street Parking Design Manual (OSPDM).

The highest point of the Project is 149.5 above Mean Sea Level (MSL), measured at Story Pole #39, with the Project 25 feet at that location. The maximum height of the Project is 47.1’ above the lowest point of the existing/proposed grade at Story Pole #86 where the project site elevation is 116 feet above MSL at that location. As required by State law, the City will waive development standards for height of buildings, retaining walls, and walls and fences that would otherwise physically preclude development of the property with the permitted density bonus.
(3) Landscaping: The removal of significant native vegetation shall be minimized. Replacement vegetation and landscaping shall be compatible with the vegetation of the surrounding area. Trees and other large plantings shall not obstruct significant views when installed or at maturity.

Per SBMC 17.56.040, the proposed development is subject to the City’s Water Efficient Landscape Regulations. The existing site contains developed areas and vegetation consisting of both native trees and non-native ornamental trees, shrubs and other plant species.

The final landscaping plan for the Project includes 247,583 square feet of landscaped area which is equal to approximately 43% of the project site. During construction of the proposed Project, it is anticipated that all of the existing trees, shrubs and other vegetation would be removed as part of the proposed Project due to the extent of grading that is proposed on site to lower pad elevations.

The Project has been conditioned to comply with the LCP LUP Policy 3.53 regarding mitigation for native tree species removed from a project site. The inclusion of five (5) California Sycamores would replace the existing mature 5 California Sycamores on site is in accordance with City LCP requirements for native tree mitigation.

The proposed changes to the buffer landscaping are in response to concerns raised by adjacent residents expressing concerns regarding the viability of transplanted 84-inch box trees and potential impact on hillside / slope stability as well as smaller size container trees ability to grow faster after transplantation.

In lieu of ten (10) 84-inch box Coast Live Oaks along the southern edge of the project site, the planting plan includes twenty-three (23) 36-inch Coast Live Oaks in the East and North-East Zones. Along Resolution 2022-006
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the southern project boundary, screening will be provided by fifteen (15) Coastal Shrub Oaks in 24-inch box containers that are more appropriate for slope planting. Other prominent screening trees in the South Zone include fourteen (14) Torrey Pines and various other tree species. In total, more than two hundred fifty (250) 24- inch box or larger trees will be located within the buffer zones in a combination of oak, palm and other native and drought tolerant tree species selected with the benefit of community input.

The Project would include the installation of mature (boxed) trees to reduce visual and aesthetic effects from the loss of the existing vegetation on site. Larger shade trees would include approximately 716 trees in total including 15-gallon trees and 24-inch box trees The landscape plan includes the use of native species and/or drought-tolerant plant material. No invasive or potentially invasive species would be used. Planting is intended to be a connecting device linking the various pieces of the project site and design styles. The landscape plan uses plant material to help define spaces, create/encourage circulation paths, emphasize entry points, and provide softness and scale to the architecture.

Evergreen, deciduous, and flowering material are proposed throughout the site and mature native trees are proposed. New landscaping would use significantly less water than the current landscaping, as the proposed Project would use reclaimed water for all landscape uses and would also comply with all California landscape water-usage standards.

The Applicant’s final landscape plan has been reviewed by the City’s third-party landscape architect who has recommended approval. The Applicant would be required to submit detailed construction landscape drawings that would be reviewed by the City’s third-party landscape architect for conformance with the final plan approved by Council. Additional Conditions of Approval have been added to ensure that the Final Landscape Plan is reviewed and approved by the Santa Fe Irrigation District/San Elijo Joint Powers Authority (JPA) and the County of San Diego Department of Environmental Health and include an engineering review by EsGil of all Final Landscape Plan Construction Drawings. In addition, the City’s third-party landscape architect would perform inspections during the Project construction. A separate condition requires that native or drought-tolerant and non-invasive plant materials and water-conserving irrigation systems are required to be incorporated into the landscaping to the extent feasible.

Resolution 2022-006
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(4) Roads, Pedestrian Walkways, Parking and Storage Areas: Any development involving more than one building or structure shall provide common access roads and pedestrian walkways. Parking and outside storage areas, where permitted, shall be screened from view, to the extent feasible, by existing topography, by the placement of buildings and structures, or by landscaping and plantings.

Residential projects in the City are required to comply with parking standards in SBMC 17.52. The parking requirements for the affordable senior housing element are per the State bonus density code (CGC 65915(p)). Although this maximum required parking ratio could apply to the entire property, the Applicant is complying with SBMC Chapter 17.52 for the market-rate portion of the site (e.g., 228 units).

The proposed Project meets or exceeds the parking requirements for automobile and motorcycle parking as outlined in SBMC 17.52.

Pedestrian paths are provided throughout the site to facilitate internal pedestrian circulation across and within the site.

Vehicular access to the site would be provided from two driveway locations on South Nardo Avenue. In addition, direct access to the affordable senior housing building would be provided from the existing curb cut serving the existing multi-family units off Stevens Avenue located south of the intersection of South Nardo Avenue and Stevens Avenue.

All entrances would provide full movement driveways allowing inbound and outbound movements. The Project driveways are proposed to be unsignalized.

Pedestrian access to and from the project site would be provided via new and/or improved perimeter sidewalks along South Nardo Avenue and Stevens Avenue.
(5) Grading: To the extent feasible, natural topography and scenic features of the site shall be retained and incorporated into the proposed development. Any grading or earth-moving operations in connection with the proposed development shall be planned and executed to blend with the existing terrain both on and adjacent to the site. Existing exposed or disturbed slopes shall be landscaped with native or naturalized non-native vegetation and existing erosion problems shall be corrected.

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Grading is proposed in the amount of 187,000 cubic yards with approximately 160,000 cubic yards of soil to be exported off-site.

The project site varies from an elevation of approximately 39 to 150 feet above MSL, sloping upward from southeast to northwest. The majority of the proposed grading is intended to facilitate a general lowering of elevations on the site to address the potential for private view impairment and to facilitate internal circulation for pedestrians as well as vehicles.

The Engineering Department has included a condition of approval that the Applicant shall participate in the Sand Compatibility and Opportunistic Use Program (SCOUP) and deposit beach
compatible sands / sediment exports on city beaches if the Applicant’s soil engineer determines that any or all of the soil to be exported is compatible with beach sediments in accordance with the City’s SCOUP permits.
(6) Lighting: Light fixtures for walkways, parking areas, driveways, and other facilities shall be provided in sufficient number and at proper locations to assure safe and convenient nighttime use. All light fixtures shall be appropriately shielded so that no light or glare is transmitted or reflected in such concentrated quantities or intensities as to be detrimental to the surrounding areas per SBMC

17.60.060 (Exterior Lighting Regulations).

Conditional approval of this Project includes the requirement that all new exterior lighting fixtures be in conformance with the City-Wide Lighting Regulations of the Zoning Ordinance (SBMC 17.60.060).

All light fixtures will be shielded so that no light or glare is transmitted or reflected in such concentrated quantities or intensities as to be detrimental to the surrounding area. Adequate lighting shall be provided in all parking areas used by the public for safe pedestrian and vehicular movement. A minimum lighting level of 0.2 foot-candles is required for all parking areas. All lights provided to illuminate any loading space or parking area shall be designed, adjusted, and shielded to avoid casting light toward public roads and adjoining residential properties.
(7) Usable Open Space: Recreational facilities proposed within required usable open space shall be located and designed to maintain essential open space values.

The Project is a high-density residential development within the HR Zone and, pursuant to the SBMC, requires common usable open space in the amount of 250 square feet per residential unit for a Resolution 2022-006
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total of 65,000 square feet. The proposed Project provides a total of 65,434 square feet of open space.

The proposed Project includes passive usable open space areas.

Additionally, the proposed Project would include a small park area, along South Nardo Avenue.

III. All required permits and approvals including variances, conditional use permits, comprehensive sign plans, and coastal development permits have been obtained prior to or concurrently with the modifications to the previously approved development review permit.

The Project is also located within the Coastal Zone as the entire City of Solana Beach is within the Coastal Zone. As a condition of project approval, the Applicant was required to obtain a Coastal Development Permit from the CCC which was issued in May 2019 under CDP # 06-19- 0109
IV. If the proposed Project modifications also require a permit or approval to be issued by a State or federal agency, the City Council may conditionally approve the development review permit upon the applicant obtaining the required permit or approval from the other agency.

The FEIR that was certified for this Project does not include mitigation measures that require permits or approval from other agencies. The Mitigation Monitoring and Reporting Program (MMRP) was adopted for this Project as a part of certification of the FEIR. All applicant proposed project design features are included as conditions of project approval.

B. In accordance with Section 17.63.040 (Structure Development Permit) of the Solana Beach Municipal Code, the City Council finds the following:

1. The Applicant for the Project modifications went through an extensive Structure Development Permit for the Project approved by the Council in 2018 under Resolution 2018-132.

2. With the proposed modifications, the Applicant requested and received approval by the City Council of a Structure Development Permit waiver for the following modifications to Buildings 13, 19 and 24: 1) Building 13 to be modified as follows - the maximum building height of the easterly 47 feet of Building 13 will be lowered to 130.5 MSL and allow the remaining westerly approximately 144’ feet of Building 13 to be constructed to the height of 139.9’ MSL as originally depicted and certified by story pole certification dated 6/14/18. 2) Building 19 (Clubhouse) to be modified on three sides (front, rear and street side) to allow second-floor balconies open on three sides with a roof, and an exterior staircase which would project outside of Resolution 2022-006
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the previously permitted horizontal building envelope. 3) Building 24 to be shifted approximately 60’ feet east.

3. There is no significant cumulative view impairment caused by granting the application. There have been no new or proposed projects in the area that would contribute to cumulative view impairment impacts. As described in the staff report the Applicant revised the (now approved) Project to address all potential private view impairments.

4. The proposed structures are compatible with the immediate neighborhood character. The Applicant has designed the Project with similar architectural features, materials, roof types and colors that can be found in the surrounding neighborhoods. The Applicant will be required to show compliance with the approved maximum height and three-dimensional building envelope that was approved by the SDP, subject to the approved modifications to Buildings 13, 19 and 24 noted above, at the time of submittal for a building permit and also prior to requesting a framing inspection.

5. CONDITIONS
The conditions contained within the original Resolutions of approval 2018-131 and 2018-132 are still in effect except as expressly modified by this Resolution as shown below.

Prior to use or development of the property in reliance on this permit, the Applicant shall provide for and adhere to the following conditions:

A. Community Development Department Conditions:

I. Prior to requesting a framing inspection, the Applicant will be required to submit a height certification, signed by a licensed land surveyor, certifying that the maximum building height of the structure does not exceed 149.5 above Mean Sea Level (MSL), measured at Story Pole #39 and 47.1’ above the lowest point of the existing/proposed grade at Story Pole #86 as measured from the lower of the existing or proposed grade, and is in conformance with the plans as approved by the City Council on December 17, 2018 and as modified and as approved by the City Council under this Resolution and the certified story pole plot plan and certifying the maximum building height of all framing and structures do not exceed the heights referred to herein and in the Project plans.

II. BUILDING HEIGHTS.
a. Finished Building Heights. The maximum finished height of all buildings and structures of the Project shall not exceed the maximum finished heights submitted by the Applicant to the City and presented to the View Assessment Commission on October 16, 2018 and Resolution 2022-006
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November 20, 2018 concerning the Structure Development Permit for the Project (the “Modifications to Project Plans”) to address the applications for View Assessment filed for the Project. The maximum finished heights include but are not limited to installation of roofing materials, parapet walls, if any, mechanical equipment (including heating, ventilation, and air conditioning equipment) and related screening of each roof or roof section. The “Initial Project Plans” and “Modifications to Project Plans” are collectively referred to as the “Project Plans”
i. The Applicant shall modify Building 13 maximum height to lower the maximum building height of the easterly 47 feet of Building 13 to 130.5 MSL and allow the remaining westerly approximately 144’ feet of Building 13 to be constructed to the height of 139.9’ MSL as originally depicted and certified by story pole certification dated 6/14/18.
b. Confirmation of Building Heights Before Framing Inspection. Within sixteen (16) months after the City Council’s approval of the Development Review Permit for this Project (as conditioned by the City Council), but no later than March 1, 2023, the Applicant shall prepare and submit to the City Manager a chart in the form and content acceptable to the City Manager which, at a minimum sets forth the following information for each roof or roof section of each building or structure in the Project:
(i) The building number for each building as set forth on the Preliminary Grading Plan (or identify the structure if no number) and the height of those story poles and the height of the ridge(s) of each roof and roof section of each building or structure and the applicable story pole number for each roof ridgeline;
(ii) The maximum height based on Mean Sea Level (MSL) elevation of the completed framing for each ridge of each roof and roof section of each building or structure before installation of anything on the rough framing, including installation of roofing materials or other materials or equipment; and
(iii) The maximum finished height based on Mean Sea Level (MSL) elevation for each ridge of each roof and roof section of each building or structure after installation of roofing materials, parapet walls, if any, mechanical equipment (including heating, ventilation, and air conditioning mechanical equipment) and related screening of each roof and roof section.

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The foregoing maximum heights shall be consistent with the maximum finished heights set forth in the Project Plans.

III. PARKING.

Parking Management Plan. The Applicant shall prepare a written Parking Management Plan and identify thereon which garages, carport parking spaces, and uncovered parking spaces are assigned to each apartment as reserved parking spaces for each apartment and the location of all unreserved tenant parking spaces and visitor parking spaces in the Project. The Applicant shall submit the onsite Parking Management Plan to the City Manager on or before September 1, 2023, for approval. The Parking Management Plan shall be in place to prevent resident use of adjacent street parking. The Parking Management Plan shall contain provisions in tenant leases that clearly restrict the garage space use from impeding the ability to park an automobile in the garage and allow garages to be inspected periodically.

IV. LANDSCAPE PLAN.

The Applicant has submitted to the City Council a Final Landscape Plan dated December 20, 2021, which is part of the proposed project modifications under consideration by the City Council.

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e. Removal and Replacement. Trees and other vegetation shall not be removed without concurrently replacing same. When replacing trees and other vegetation, the Applicant shall maintain the same or better level of architectural significance, design value and quality shown on the Final Landscape Plan. Also, when replacing trees, the Applicant shall replace with equal or larger size of the trees as indicated in the Landscape Zone Plan and Final Landscape Plan.
f. Height of Trees at Maturity. The Final Landscape Plan shall specify the selection of the species of trees, including the height of trees at maturity, and placement of the trees throughout the Project, including in all landscape buffer areas on the Project perimeter, and shall avoid blocking views of residences located on South Nardo Avenue that filed view claims concerning this Project.
c. Landscaping and tree heights shall demonstrate that, at maturity, trees shall not exceed the height of Building 12 within the view corridor between Buildings 2 and 3, Buildings 11 and 12 and Buildings 13, 14 and 17. The Final Landscape Plan shall be reviewed and approved by the Santa Fe Irrigation District/San Elijo Joint Powers Authority (JPA) and the County of San Diego Department of Environmental Health prior to building permit issuance.
d. Engineering review shall be conducted by EsGil for Final Landscape Plan Construction Drawings prior to building permit issuance.

B. Engineering Department Conditions:

I. PUBLIC IMPROVEMENTS/TRAFFIC CALMING PLAN
The following engineering conditions (1 thru 13 under Public Improvements) are required to improve the existing roadway network adjacent to and in general vicinity of the proposed project boundary consistent with the City’s circulation element and implementing certain recommendations of the City’s Comprehensive Active Transportation Strategies (CATS) Program in satisfaction of the Traffic Impact Fee (TIF) requirement. The Applicant shall construct and install the improvements set forth on the Off-Site Improvement Plan dated December 3, 2018 (the “Off-Site Improvement Plan”) as modified by the Traffic Calming Plan exhibit dated January 2022 submitted by the Applicant to the City concerning the Development Review Permit for the Project. The Applicant shall obtain an Engineering permit for construction of public improvements to the satisfaction of the City Engineer as follows:

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(1) The applicant shall be responsible for enhancement to the operation of Turfwood driveway access at Valley Avenue. These Enhancements may include but not be limited to:
(a) Striping the Turfwood driveway for a distance of approximately 50 feet from Valley Avenue to accommodate one inbound lane, one outbound left turn lane, and one outbound right turn lane.

Additionally, the applicant shall install “Keep Clear” legend on Valley Avenue at Turfwood driveway.
(b) Working with the City Engineer and the adjacent property owner to improve the sight visibility line for vehicles exiting Turfwood Lane. If the adjacent property owner is uncooperative, the applicant is not obligated to provide any improvements outside of the existing right of way.
(c) Installation of a “Solar Powered Electronic Speed Sign” on Southbound Stevens Avenue or other means to calm traffic approaching Turfwood driveway access.
(d) The Applicant shall monitor the traffic pattern and delay at the Turfwood Lane Access to the Valley Avenue four times (two times during morning and two times during afternoon peak hours) within one year after full implementation of the above measure. Upon completion of the field observation and monitoring efforts, a report prepared by a professional traffic engineer shall be delivered to the City Engineering office. If additional enhancement is warranted, the Applicant shall implement the Project’s share of the required improvements at a cost not to exceed $50,000 to the satisfaction of the City Engineer.
(2) The Applicant shall reconstruct the southwesterly curb return at the intersection of Nardo Avenue and Stevens Avenue. The Applicant shall place thermoplastic continental pedestrian crossing striping at the north and west side of the intersection. The Applicant shall replace the pedestrian ramps at the northwest corner and east side of the intersection to the satisfaction of the City Engineer. (3) On west side of Valley Avenue, south of Nardo Avenue provide appropriate regulatory signs to prohibit left turn out of the proposed driveway for the senior housing complex.
(4) On south Nardo Avenue west of Stevens Avenue install a raised concrete median and corresponding signage, striping, and pavement legends to channelize traffic. This may require Resolution 2022-006
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elimination of on-street parking along South Nardo on both sides of the street.
(5) On northwest, southwest, and northeast corner of South Nardo Avenue and Fresca Street, install concrete curb extensions. This will require elimination of two (2) on-street parking spaces along south side of Nardo Avenue. The proposed curb extensions shall be designed to accommodate ADA compatible pedestrian ramps on both sides of Nardo Avenue. The applicant shall also install thermoplastic continental crosswalk for pedestrian crossing at the stop-controlled north leg of South Nardo Avenue/Fresca Street and a solar powered pedestrian crossing flashing sign with
corresponding signage.
(6) On Nardo Avenue install raised concrete chokers with sufficient lengths and widths. The applicant shall enter into an Encroachment Maintenance and Removal Agreement (EMRA) for maintenance of any landscaping and irrigation system in these features.

Additionally, the applicant shall install two “Solar Powered Electronic Speed Signs” within this segment of Nardo Avenue. (7) The Applicant shall place thermoplastic continental pedestrian crossing striping on Nardo Avenue north side of Solana Circle and on Solana Circle west side of Nardo Avenue to the satisfaction of the City Engineer. City will perform appropriate analysis and report to the City Council. If directed by the City Council, City Staff would facilitate the installation of new stop signs on south Nardo Avenue at Nardito Lane and Solana Circle with corresponding signs and legends.
(8) The applicant Shall Construct two Chokers (Physically narrowing the road width by extending the curbs and installing a short median section) between Nardito Lane and Fresca Street with
corresponding signs and pavement legends to the satisfaction of the City Engineer.
(9) On both sides of South Nardo between Solana Circle and Stevens Avenue install Sharrow marking pavement legends.
(10) Construct all sewer lateral connections to the City sewer main consistent with City Standards.
(11) Construct all proposed driveway entrances to the Project on South Nardo Avenue and Valley Avenue consistent with City Standards.

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(12) Construct all storm drain connections to the City curb or storm drain system consistent with City Standards.
(13) The existing sewer main serving this property, proposed to be replaced, shall be abandoned in the public right-of-way by plugging the street manhole connection and plugging the pipe at the right-ofway line. The sewer connection(s) for 821 Stevens Avenue shall be capped at the main.
(14) Connect to the existing recycled waterline on Stevens Avenue. The applicant shall coordinate with Santa Fe Irrigation District, San Elijo Joint Powers Authority and County Health Department for this extension project. All irrigation system including the ones in the public right of way shall be provided by recycled water. (15) The Applicant shall continue to work with City Staff to develop the Traffic Calming Plan referenced herein. Upon completion, the Traffic Calming Plan shall be subject to future consideration and approval by the City Council.

6. ENFORCEMENT: Pursuant to SBMC 17.72.120(B) failure to satisfy any and all of the above-mentioned conditions of approval is subject to the imposition of penalties as set forth in SBMC Chapters 1.16 and 1.18 in addition to any applicable revocation proceedings. The conditions of approval for the Project modifications shall remain in place until such time they may be amended or superseded by subsequent City Council action.

7. EXPIRATION: The vesting tentative map shall expire 24 months after the date of Coastal Commission CDP final permit issuance and may be extended as provided by State law or Section 16.12.110, whichever provides the longest extension. All other approvals granted by this resolution shall expire 60 months after the date of Coastal Commission permit issuance and may be extended as provided by Section

17.72.110.

8. INDEMNIFICATION AGREEMENT: The Applicant shall defend, indemnify, and hold harmless the City, its agents, officers, and employees from any and all claims, actions, proceedings, damages, judgments, or costs, including attorney’s fees, against the City or its agents, officers, or employees, relating to the issuance of this permit including, but not limited to, any action to attack, set aside, void, challenge, or annul this development approval and any environmental document or decision.

The City will promptly notify the Applicant of any claim, action, or proceeding. The City may elect to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification. In the event of such election, Applicant shall pay all of the costs related thereto, including without limitation reasonable attorney’s fees and costs. In the event of a disagreement between the City and the Applicant regarding litigation issues, the City shall have the authority to control the litigation and make litigation related decisions, including, but not limited to, settlement or other disposition of the matter.

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However, the Applicant shall not be required to pay or perform any settlement unless such settlement is approved by Applicant.

9. NOTICE TO APPLICANT: Developer is hereby notified, as required by Government Code Section 66020, that the approved plans and the conditions of approval and ordinances governing fees and exactions in effect at the time the Project modifications are approved constitute written notice of the description of the dedications, reservations, amount of fees and other exactions related to the Project.

As of the date of approval of Project modifications, the 90-day period has begun in which developer may protest any dedications, reservations, fees or other exactions imposed by the City. To protest the imposition of any fee, dedications, reservations or other exactions described in this resolution you must comply with the provisions of Government Code Section 66020. Failure to file a protest in compliance with all of the requirements of Government Code Section 66020 will result in a legal bar to challenging the dedications, reservations, fees or other exactions.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Solana Beach, California, held on the 9h day of March 2022, by the following vote:

AYES: Councilmembers –
NOES: Councilmembers –
ABSENT: Councilmembers –
ABSTAIN: Councilmembers –
LESA HEEBNER, Mayor
APPROVED AS TO FORM: ATTEST:

JOHANNA N. CANLAS, City Attorney ANGELA IVEY, City Clerk RESOLUTION 2022-006

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLANA

BEACH, CALIFORNIA, CONDITIONALLY APPROVING A

DEVELOPMENT REVIEW PERMIT MODIFICATION AND STRUCTURE

DEVELOPMENT PERMIT WAIVER FOR THE PREVIOUSLY

APPROVED SOLANA HIGHLANDS RESIDENTIAL COMMUNITY AND
AFFORDABLE SENIOR HOUSING PROJECT AT 661-781 SOUTH
NARDO AVENUE AND 821 STEVENS AVENUE.

APPLICANT: H.G. Fenton
CASE NO.: DRP Mod 2020-002
WHEREAS, H.G. Fenton (hereinafter referred to as “Applicant”) submitted an application for a Development Review Permit (DRP), Structure Development Permit (SDP), Affordable Housing Plan, Density Bonus with Development Standards Waiver, and Fee Waiver subject to Title 17 (Zoning), of the Solana Beach Municipal Code (SBMC); and WHEREAS, the Applicant also requested approval of a Vesting Tentative Parcel Map (VTPM) which would modify the property from three lots to two lots; and WHEREAS, at the duly and properly noticed public hearing held on December 5, 2018, and the continued public hearing held on December 17, 2018, the City Council received and considered evidence concerning the proposed application as revised; and WHEREAS, the public hearings were conducted pursuant to the provisions of Solana Beach Municipal Code Section 17.72.030; and
WHEREAS, the City Council of the City of Solana Beach certified the Final Environmental Impact Report (FEIR), and adopted a Mitigation Monitoring and Reporting Program (MMRP) and Findings of Fact for the Solana Highlands Revitalization Project (the “Project”) Solana Highlands project in accordance with the California Environmental Quality Act and the State CEQA Guidelines via Resolution 2018-131; and WHEREAS, the Solana Beach City Council approved a Development Review Permit (DRP), Structure Development Permit (SDP), and Vesting Tentative Parcel Map (VTPM) and all related entitlements to construct the Solana Highlands Revitalization Project (the “Project”)Project under Resolution 2018-132; and
WHEREAS, following City Council approval in 2018, the Applicant obtained California Coastal Commission approval of Coastal Development Permit # 06-19-0109 for the Project in May 2019; and
WHEREAS, following Coastal Commission approval, the Applicant initiated preparation of construction and engineering plans and submitted applications for ministerial building permits to the City in December 2019 for certain building, grading and public improvement elements of the pProject; and
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WHEREAS, City Staff and the Applicant coordinated on the permit processing effort to discuss and review comments on the pProject plans intermittently throughout 2020 until processing efforts were slowed / hampered by COVID-19-related restrictions and protocols and related staff work modifications; and
WHEREAS, during 2020 and continuing until the present time, input from the community was solicited by the Applicant on several key pProject-related topics including landscaping, traffic calming measures and Applicant-initiated revisions to Buildings 13, 19 (Clubhouse) and 24; and
WHEREAS, in April 2021, the Applicant submitted a formal application to modify discrete elements of the previously approved pProject (DRP/SDP 17-14-29) to approved/proposed Buildings 13, 19 (Clubhouse), and 24 and to finalize the pProject landscape plan, traffic calming plan, and to request additional time to complete the onsite parking management plan; and
WHEREAS, the Applicant has stated that their intent with the pProject modifications is to ensure that each element remains consistent with the goals and intent of City Councilimposed Conditions of Approval contained in Resolution 2018-132; and WHEREAS, the Applicant requests consideration of a modification of the City Council Condition of Approval requiring that Building 13 be lowered by six (6) inches from the revised story pole plan elevation submitted October 2, 2018, limiting the maximum elevation of building 13 to 134.9 MSL. The Applicant requests the condition be revised to lower the maximum building height of the easterly 47 feet of Building 13 by an additional

3.0 feet (to 130.51.9 MSL) and allow the remaining westerly approximately 144’ feet of Building 13 to be constructed to the height of 139.9’ MSL as originally depicted and certified by story pole certification dated 6/14/18 and waive the story pole requirement for this modification as no new view impairment would occur; and WHEREAS, the Applicant requests consideration of a modification to Building 19 (Clubhouse) on three sides to allow a second-floor balcony, open on three sides with a roof, and an exterior staircase, which would project outside of the previously permitted horizontal envelope and waive the story pole requirement for these modifications as no new view impairments would occur; and
WHEREAS, the Applicant requests consideration of a modification to the site plan to shift Building 24 approximately 60’ feet east and waive the story pole requirement for this modification as no new view impairment would occur; and WHEREAS, the Applicant requests consideration of a modification to City Council Condition of Approval requiring submittal of an onsite Parking Plan to the City Manager on or before March 1, 2020 to allow additional time to develop the parking plan and . The Applicant requests they be allowed to submit the onsite Parking Management Plan to the City Manager on or before September 1, 2023; and
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WHEREAS, the Applicant requests consideration of refinements to the originally approved traffic calming plan reflecting an iterative review process with the community and the input of the City Engineer and the Solana Beach Fire Department; and WHEREAS, the Applicant requests consideration of a modification of a portion of City Council Condition of Approval XXVI requiring separate City Council approval of a Final “Conceptual” Landscape Plan. The Applicant requests that a Final Landscape Plan be reviewed and approved by the City Council essentially skipping an interim approval of a Final “Conceptual” Landscape Plan. The Applicant also requests that the requirement for 10, 84-inch box trees be removed from the pProject requirements; and.

WHEREAS, the above described six (6) proposed modifications requested by the Applicant are refinements to the approved pProject that are the result of ongoing dialogue with the community and do not change the fundamental elements of the pProject previously approved by the City Council on December 17, 2018 including the number of residential units or parking spaces to be constructed which remain unchanged from 2018; and
WHEREAS, City Council Resolution 2018-131 and Resolution 2018-132 remain intact, relevant and applicable to the Solana Highlands pProject modifications unless otherwise expressly modified herein; and
WHEREAS, this new Resolution is intended to supplement, and not replace, the original approving Resolution 2018-132 and has been intentionally streamlined to focus only on the pProject modifications in an effort to provide clarity and avoid unnecessary duplication and redundancy; and
WHEREAS, at the duly and properly noticed public hearing held on March February 9, 2022 the City Council received and considered evidence concerning the proposed pProject modifications; and
WHEREAS, the public hearing was conducted pursuant to the provisions of Solana Beach Municipal Code Section 17.72.030; and
WHEREAS, this decision is based upon the oral and written evidence presented at the hearing, and any information the City Council gathered by viewing the site and the area as disclosed at the hearing.

NOW THEREFORE, the City Council of the City of Solana Beach, California, does resolve as follows:

1. That the foregoing recitations are true and correct.

2. That an Environmental Impact Report (EIR) was prepared for this Project in conformance with the California Environmental Quality Act of 1970 (CEQA). The EIR was prepared as a Project EIR pursuant to Section 15161 of the State CEQA Guidelines. The FEIR was contained in two volumes and consists of the following - - -
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parts plus the Findings of Fact approved by the City Council under Resolution 2018- 131 on December 17, 2021. Following pProject approval by the City Council, a Notice of Determination (Section 15375) was filed by the City with the San Diego County Clerk.

The proposed project modifications to the pProject do not raise any new environmental issues or increase the level of impact previously disclosed in the Final EIR Certified by the City Council in December 2018 under Resolution 2018- 131. Therefore, no new or subsequent environmental review is required due to the scope and nature of the modifications as proposed, pursuant to the State CEQA Guidelines Section 15162.

3. That the Applicant request for a DRP Modification and SDP Waiver for the above described modifications to the approved Solana Highlands residential development pProject consisting of 260 residences (including 32 affordable senior units) consisting of studios, one and two bedrooms, 10,287 square feet of clubhouse/leasing office space, 247,583 square feet of landscaped area, 716 trees, 65,434 square feet of open space, 525 on-site parking spaces including 233 garages, 22 covered spaces and 270 open/guest spaces, is conditionally approved based upon the following Findings and subject to the following Conditions:

4. FINDINGS
Based on the totality of the record, the City Council makes the following findings:

A. In accordance with Section 17.68.040 (Development Review Permit) of the City of Solana Beach Municipal Code, the City Council finds the following:

I. The proposed pProject modifications areis consistent with the General Plan and all applicable requirements of SBMC Title 17 (Zoning Ordinance), including special regulations, overlay zones and specific plans.

General Plan Consistency: The proposed pProject modifications areis consistent with the General Plan, which designates the property as High Density Residential (HR). Multi-family residential development under this category will range between 13 and 20 dwelling units per acre. Other compatible uses such as accessory dwelling units, home occupations, religious institutions, educational institutions, parks and recreation facilities, and public utilities are permitted or conditionally permitted.

Assuming maximum development and an average household size of 2.4 persons per unit, population densities in these areas could be as high as approximately 48 persons per acre. Most of Solana Beach’s high density residential development is located in the southwestern portion of the city (i.e., along the coastal bluffs south of the Plaza and in the area generally bounded by Via de la Valle, Solana Circle, Nardo Avenue, and Stevens Avenue). The approved pProject includesis proposing 260 residential Resolution 2022-006
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units which equates toor 19.4 dwelling units per acre. The proposed Project modifications remain may be found consistent with the General Plan, which designates the property as High Density Residential (HR) and remainmay be found to be consistent with the following General Plan policies in the City’s Land Use (LU) Element for residential land uses.:

Policy LU-1.1: Encourage the development and protection of healthy residential neighborhoods by ensuring sensitive transitions between those neighborhoods and adjoining areas and preventing deterioration through rehabilitation and maintenance efforts.

Project Consistency: The project has been subject to a view assessment process to ensure sensitive transitions between the project and adjacent neighborhoods and has undergone substantial changes, as described in the staff report, to create appropriate transitions.

Policy LU-1.2: The City’s land use plan shall include residential land uses comprising a range of housing types, locations, and densities.

Project Consistency: The City's general plan and housing element include a range of housing types, locations, and densities, Policy LU-1.3: In order to protect the rental housing stock, protect purchasers of dwelling units, assure consistency with the general plan density requirements, assure adequate parking, and assure adequate public facilities, conversion of existing apartments to condominiums or other similar forms of subdivision shall be regulated pursuant to City zoning and subdivision ordinances. The regulations shall ensure that conversion of apartments to condominiums or other similar types of subdivisions will meet current standards for the construction of new condominiums or other similar types of multi-family dwellings within the city.

Project Consistency: No condominium conversion is proposed as part of this project.

Policy LU-1.4: Pursue opportunities to improve and protect existing residential neighborhoods by enhancing the pedestrian and bicycle experience, implementing traffic calming measures where appropriate, and providing convenient access to schools, parks, beaches, and other amenities and services.

Project Consistency: As described in the staff report, the project includes 50 bicycle parking spaces and will construct extensive traffic calming measures and pedestrian safety measures on streets adjacent to the project.

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Policy LU-6.6: Promote infill development, redevelopment, rehabilitation, and reuse efforts that protect and
contribute positively to existing neighborhoods and
surrounding areas.

Project Consistency: The project is located on an
existing developed infill site that will be reused and, through extensive landscaping and new construction;
contribute positively to the surrounding area.

Policy LU-6.7: Promote appropriate transitions in building height and bulk, which are sensitive to the visual and physical
character of adjacent neighborhoods.

Project Consistency: As described in the staff report, the project has been subject to an extensive view
assessment process and has proposed major design
changes to ensure that it is sensitive to the visual and physical character of the adjacent neighborhoods.

The pProject modifications remainis consistent with the following General Plan programs and goals in the City’s 6
th Cycle Housing Element,
including regional housing needs assessment / local share goals and affordable housing goals., including:
(1) Continuing to implement the density bonus and affordable housing ordinances.
(2) Addressing and mitigating constraints to housing development by approving development standards and waivers needed for project construction and a fee waiver.
(3) Providing 32 affordable housing units for the elderly (seniors) as an identified “Special Needs Group” in the Housing Element. The continued affordability of these units will be ensured for 55 years, and that the rents be limited to those affordable to low income households.
(4) Meeting the local share of the Regional Housing Needs Assessment (RHNA) as established by SANDAG by providing a portion of the lower income units that are the City’s share of the regional housing need.
(5) Developing a site with the 260 units that were identified as the site’s potential in the City's Housing Element.

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(6) Redeveloping an older apartment complex to preserve neighborhood quality.

The proposed project is also consistent with the requirements of Title 17 in that the proposed project density of 260 units is permitted with a density bonus. As designed the project meets the minimum lot area of 10,000 square feet in that each lot will be 1.25 acres and 11.64 acres in size, respectively. The proposed buildings will have a minimum front yard setback of 25 feet, side yard setback of 10 feet and rear yard setback of 25 feet as required in the HR zone. Per the City’s parking ordinance, the project requires 494 parking spaces. The applicant is consistent with the parking ordinance requirement by proposing 525 parking spaces on-site.

The parking provided for the affordable senior units is consistent with Section 65915(p) of the Government Code and the City’s density bonus ordinance.

II. The proposed pProject modifications developmremain ent compliant es with the following development review criteria set forth in Solana Beach Municipal Code Section 17.68.040.F:
(1) Relationship with Adjacent Land Uses: The development shall be designed in a manner compatible with and where feasible, complimentary to existing and potential development in the immediate vicinity of the project site. Site planning on the perimeter of the development shall give consideration to the protection of surrounding areas from potential adverse effects, as well as protection of the property from adverse surrounding influences.

The subject lot is located within the High Residential Density (HR) Zone. According to SBMC 17.20.010 this zone allows 13 to 20 dwelling units/net acre and is intended for multiple-family attached units such as apartments and condominium buildings. Such areas are located in close proximity to major community facilities, commercial centers and transportation routes. It is intended that development in this zone utilize innovative site planning, and provide on-site recreational amenities.

No significant adverse effects upon neighboring properties have been identified or are anticipated to occur from the pProject implementation, and the pProject has been extensively redesigned to protect view impacts. As conditioned, the proposed pProject gives consideration to the protection of surrounding areas from potential adverse effects and provides protection of the property from adverse surrounding influences. Additionally, the City Council has certified the FEIR for this pProject and has found that pProject Resolution 2022-006
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impacts either will not occur, will be less than significant, or will be less than significant with mitigation in all the topic areas analyzed. (2) Building and Structure Placement: Buildings and structures shall be sited and designed in a manner which visually and functionally enhances their intended use.

The affordable senior building would also be three stories and is located at the southeast corner of the site.

The project includes a total of 260 units with a breakdown as follows:
(a) 12 studio apartments that are 420 square feet in size (b) 128 one-bedroom apartments ranging in size from 517 to 954 square feet
(c) 120 two-bedroom apartments ranging in size from 731 to 1,212 square feet.

Each unit proposes private open space in the form of patios for the units on the ground floor and balconies for the units on the second floor.

Project amenities on site would include a recreation
facility/clubhouse building and associated recreation facilities such as a pool, spa, barbecue areas, walking paths, and passive usable open space. Additionally, the pProject would include a small private park along South Nardo Avenue to reduce effects to public and private views in proximity to the existing greenspace on site.

The SBMC includes development standards for high density residential development based on the zone in which the pProject is located, including required setbacks, maximum FAR, and building Resolution 2022-006
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height. The proposed Project modifications meets or exceeds all required setbacks, and is below the maximum allowable FAR.

Required parking and landscaping standards are contained in the City’s Off Street Parking Design Manual (OSPDM).

The final landscaping plan for the Project includes approximately proposes 247,583 square feet of landscaped area which is equal to approximately 43% of the project site. During construction of the proposed Project, it is anticipated that all of the existing trees, shrubs and other vegetation would be removed as part of the proposed Project due to the extent of grading that is proposed on site to lower pad elevations.

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In lieu of ten (10) 84-inch box Coast Live Oaks along the southern edge of the project site, the planting plan includes twenty-three 2436-inch Coast Live Oaks in the East and North-East Zones.

Along the southern project boundary, screening will be provided by 11 Coastal Shrub Oaks in 15-gallon containers that are more appropriate for slope planting. Other prominent screening trees in the South Zone include 15 Torrey Pines and various other tree species. More than sixty 24-inch box trees will be located within the buffer zones in a combination of oak, palm and other native and drought tolerant tree species selected with the benefit of community input.

Evergreen, deciduous, and flowering material are proposed throughout the site and mature native trees are proposed. New landscaping would use significantly less water than the current landscaping, as the proposed pProject would use reclaimed water for all landscape uses and would also comply with all California landscape water-usage standards.

The Applicant’s final landscape plan has been reviewed by the City’s third-party landscape architect who has recommended approval. of the landscape plan. The Applicant would be required to submit detailed construction landscape drawings that would be reviewed by the City’s third-party landscape architect for conformance with the final plan approved by Council. Additional Conditions of Approval have been added to ensure that the Final Landscape Plan is reviewed and approved by the Santa Fe Irrigation District/San Elijo Joint Powers Authority (JPA) and the County of San Diego Department of Environmental Health and include an engineering review by EsGil of all Final Landscape Plan Construction Drawings. Sheets LC-01 through LC-13. In addition, the City’s third-party landscape architect would perform inspections during the pProject construction. phase of the project. A separate condition requires that native or drought-tolerant and non-invasive Resolution 2022-006
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plant materials and water-conserving irrigation systems are required to be incorporated into the landscaping to the extent feasible.
(4) Roads, Pedestrian Walkways, Parking and Storage Areas: Any development involving more than one building or structure shall provide common access roads and pedestrian walkways. Parking and outside storage areas, where permitted, shall be screened from view, to the extent feasible, by existing topography, by the placement of buildings and structures, or by landscaping and plantings.

The proposed Project meets or exceeds the parking requirements for automobile and motorcycle parking as outlined in SBMC 17.52.

The proposed project includes 525 onsite parking spaces, 50 bicycle spaces, 17 motorcycle spaces and 9 accessible spaces.

Pedestrian paths are provided throughout the site to facilitate internal pedestrian circulation across and within the site.

All entrances would provide full movement driveways allowing inbound and outbound movements. The Project driveways are proposed to be unsignalized.

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connection with the proposed development shall be planned and executed to blend with the existing terrain both on and adjacent to the site. Existing exposed or disturbed slopes shall be landscaped with native or naturalized non-native vegetation and existing erosion problems shall be corrected.

Grading is proposed in the amount of 187,000 cubic yards with approximately 160,000 cubic yards of soil to be exported off-site.

17.60.060 (Exterior Lighting Regulations).

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(7) Usable Open Space: Recreational facilities proposed within required usable open space shall be located and designed to maintain essential open space values.

The Project is a high-density residential development within the HR Zone and, pursuant to the SBMC, requires common usable open space in the amount of 250 square feet per residential unit for a total of 65,000 square feet. The proposed pProject provides a total of 65,434 square feet of open space.

In addition, as designed, each of the proposed residential units has its own patio (first floor units) or balcony (for second floor units) that is directly accessed from the residence.

The proposed pProject includes passive usable open space areas.

Additionally, the proposed pProject would include a small park area, along South Nardo Avenue.

The site currently has a recorded easement as part of the County of San Diego’s approval of Special Use Permit No. P. 68-187 prior to the City’s incorporation. The language of the recorded easement specifically allows for amendments to the original Special Use Permit (SUP) as well as additional activities authorized by the Grantee. By virtue of city incorporation, the City now holds the recorded easement’s Grantee interest. As such, the site is subject to the City’s zoning regulations. Provided that all the required findings for issuance of the City’s Development Review Permit (DRP) can be made, it would constitute the Grantee’s authorization and act as an amendment to the SUP or supersede the SUP in its entirety.

Portions of the property that is the subject of this application are subject to a Grant of Open Space Easement recorded July 6, 1970 in the Official Records of San Diego County for the benefit of the County of San Diego as Grantee. The City is now the Grantee as the successor in interest to the County upon incorporation.

The Open Space Easement provides that:
(i) no portion of the Open Space shall be graded, excavated or filled except in compliance with said Special Use Permit No. P 68-187 (as the same may be from time to time amended) or an
authorization by Grantee in implementation thereof and (ii) no natural or artificial improvements shall be constructed, installed, erected, permitted or maintained (other than the natural and artificial improvements complying with said Special Use Permit No.

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68-187 (as the same may be from time to time amended) or an authorization by Grantee in implementation thereof).

The City's requirements for a Development Review Permit and a Structure Development Permit are equivalent to the Special Use Permit approved by the County in 1970, and the City's approval of the Development Review Permit and the Structure Development Permit constitutes an amendment to Special Use Permit No. 68-187, allowing development and grading of the site as shown on the approved plans. The City as Grantee hereby authorizes the amendment of the Grant of Open Space Easement to permit grading, excavation, and fill and construction, installation, erection, permission, and maintenance of those natural and artificial improvements as shown on the approved plans for the Development Review Permit and the Structure Development Permit.

All required permits and approvals required by the City, including the SDP, VTPM and Affordable Housing Plan, Fee Waiver, and Density Bonus with Waiver of Development Standards are being processed concurrently with the Development Review Permit.

The Project is also located within the Coastal Zone as the entire City of Solana Beach is within the Coastal Zone. As a condition of project approval, the Applicant was required to obtain a Coastal Development Permit from the CCC which was issued in May 2019 under CDP # 06-19- 0109
IV. If the proposed development pProject modifications also requires a permit or approval to be issued by a State or federal agency, the City Council may conditionally approve the development review permit upon the applicant obtaining the required permit or approval from the other agency.

The FEIR that was certified for this pProject does not include mitigation measures that require permits or approval from other agencies. The Mitigation Monitoring and Reporting Program (MMRP) was adopted for this pProject as a part of certification of the FEIR. All applicant proposed project design features are included as conditions of project approval.

B. In accordance with Section 17.63.040 (Structure Development Permit) of the Solana Beach Municipal Code, the City Council finds the following:

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1. The Applicant for the Project modifications went through an extensive Structure Development Permit for the pProject approved by the Council in 2018 under Resolution 2018-132.

2. With the proposed modifications, the Applicant requested and received approval by the City Council of a Structure Development Permit waiver for the following modifications to Buildings 13, 19 and 24: 1) Building 13 to be modified as follows - the maximum building height of the easterly 47 feet of Building 13 will be lowered by an additional 3.0 feet (to 130.51.9 MSL) and allow the remaining westerly approximately 144’ feet of Building 13 to be constructed to the height of 139.9’ MSL as originally depicted and certified by story pole certification dated 6/14/18. 2) Building 19 (Clubhouse) to be modified on three sides (front, rear and street side) to allow second-floor balconies open on three sides with a roof, and an exterior staircase which would project outside of the previously permitted horizontal building envelope. 3) Building 24 to be shifted approximately 60’ feet east.

3. There is no significant cumulative view impairment caused by granting the application. There have been no new or proposed projects in the area that would contribute to cumulative view impairment impacts. As described in the staff report the Applicant revised the (now approved) pProject to address all potential private view impairments.

4. The proposed structures are compatible with the immediate neighborhood character. The Applicant has designed the pProject with similar architectural features, materials, roof types and colors that can be found in the surrounding neighborhoods. The Applicant will be required to show compliance with the approved maximum height and three-dimensional building envelope that was approved by the SDP, subject to the approved modifications to Buildings 13, 19 and 24 noted above, at the time of submittal for a building permit and also prior to requesting a framing inspection.

5. CONDITIONS
The conditions contained within the original Resolutions of approval 2018-131 and 2018-132 are still in effect except as expressly modified by this Resolution as shown below.

Prior to use or development of the property in reliance on this permit, the Applicant shall provide for and adhere to the following conditions:

A. Community Development Department Conditions:

I. Prior to requesting a framing inspection, the Applicant will be required to submit a height certification, signed by a licensed land surveyor, certifying that the maximum building height of the structure does not exceed 149.5 Resolution 2022-006
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above Mean Sea Level (MSL), measured at Story Pole #39 and 47.1’ above the lowest point of the existing/proposed grade at Story Pole #86 as measured from the lower of the existing or proposed grade, and is in conformance with the plans as approved by the City Council on December 17, 2018 and as modified and as approved by the City Council under this Resolution on January 12, 2022 and the certified story pole plot plan and certifying the maximum building height of all framing and structures do not exceed the heights referred to herein and in the Project plans.

II. BUILDING HEIGHTS.
a. Finished Building Heights. The maximum finished height of all buildings and structures of the Project shall not exceed the maximum finished heights set forth on the Initial Project Plans and the modification thereto for Building #12 (lowers the finished height), Building #13 (lowers the finished height), and Building #10 (expands the building envelope without increasing the finished height) submitted by the Applicant to the City and presented to the View Assessment Commission on October 16, 2018 and November 20, 2018 concerning the Structure Development Permit for the Project (the “Modifications to Project Plans”) to address the applications for View Assessment filed for the Project. The maximum finished heights include but are not limited to installation of roofing materials, parapet walls, if any, mechanical equipment (including heating, ventilation, and air conditioning equipment) and related screening of each roof or roof section. The “Initial Project Plans” and “Modifications to Project Plans” are collectively referred to as the “Project Plans” i. The Applicant shall modify Building 13 maximum height to lower the maximum building height of the easterly 47 feet of Building 13 by an additional 3.0 feet (to 130.51.9 MSL) and allow the remaining westerly approximately 144’ feet of Building 13 to be constructed to the height of 139.9’ MSL as originally depicted and certified by story pole certification dated 6/14/18.
b. Confirmation of Building Heights Before Framing Inspection. Within sixteen (16) months after the City Council’s approval of the Development Review Permit for this Project (as conditioned by the City Council), but no later than March 1, 2023, the Applicant shall prepare and submit to the City Manager a chart in the form and content acceptable to the City Manager which at a minimum sets forth the following information for each roof or roof section of each building or structure in the Project:
(i) The building number for each building as set forth on the Preliminary Grading Plan (or identify the structure if no number) Resolution 2022-006
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and the height of those story poles and the height of the ridge(s) of each roof and roof section of each building or structure and the applicable story pole number for each roof ridge;
(ii) The maximum height based on Mean Sea Level (MSL) elevation of the completed framing for each ridge of each roof and roof section of each building or structure before installation of anything on the rough framing, including installation of roofing materials or other materials or equipment; and
(iii) The maximum finished height based on Mean Sea Level (MSL) elevation for each ridge of each roof and roof section of each building or structure after installation of roofing materials, parapet walls, if any, mechanical equipment (including heating, ventilation, and air conditioning mechanical equipment) and related screening of each roof and roof section.

The foregoing maximum heights shall be consistent with the maximum finished heights set forth in the Project Plans. c. Roof Slopes. The slopes of the roofs shall not be decreased or increased.

EXTERIOR MATERIALS.

Materials Approved. When constructing the buildings in the Project, the Applicant shall use exterior materials that are of the same type and design and have the same appearance, finish, and architectural design significance and are substantially the same or better quality as the exterior materials shown in the plans, illustrations, photographs, photo and electronic simulations, renderings, and other visual and graphic images submitted by the Applicant to the City Council to obtain approval of this Project. The Project, including the affordable senior housing units, shall be constructed with the same design type and same or betterquality materials as shown on such visual and graphic images as approved by the City under this Resolution.

III. PARKING.
a. Addition of Parking Spaces on Lot B. The Applicant has proposed a total of five hundred twenty-five (525) total parking spaces for the Project allocated as follows: 488 spaces for Lot A; and 37 spaces for Lot B. The Applicant has subsequently agreed to add six (6) additional parking spaces on Lot B for a total of 43 spaces on Lot B.

The six (6) additional spaces shall be added at the north side of the Resolution 2022-006
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proposed parking area for Lot B. The six (6) additional parking spaces shall be designated as “visitor” parking.
b. Quantity of Parking Spaces for the Project. All references to “parking spaces” mean parking for cars and trucks, not motorcycles. The Applicant has proposed a total of 525 parking spaces for the Project.

With the six (6) additional visitor parking spaces for Lot B as provided in Subsection (a) above, the Project and Project Plans shall provide a total of five hundred thirty-one (531) parking spaces (a cumulative total for tenants and visitors) for the Project (includes Lot A [market rate apartments] and Lot B [affordable senior apartments]). All parking spaces shall be in compliance with the City’s Off-Street Parking Manual.
c. The zoning applicable to the Project based on the type of apartments (e.g., amount of bedrooms in each apartment) and quantity of apartments in the Project requires a total of 494 parking spaces (this is the total for both tenants and visitors, and includes ADA parking spaces). The Project shall provide a total of 531 parking spaces.

Thus, in order for the Applicant to provide 531 parking spaces, the Project and Project Plans shall provide the 494 parking spaces required by zoning plus an additional 37 extra parking spaces. d. The 531 parking spaces are allocated as follows:
e. (i) 488 Lot A; and
f. (ii) 43 Lot B.
g. LOT A. There shall be a total of four hundred eighty-eight (488) parking spaces on Lot A, and these parking spaces shall be allocated as follows:
h. There will be a maximum of 343 reserved parking spaces available for tenants, at least 88 unreserved parking spaces available for tenants, and 57 visitor parking spaces. Thus, the 488 parking spaces are allocated as follows:
i. 343 maximum reserved parking spaces for tenants (based on 1 space for studio apartment, 1 space for one bedroom, and 2 spaces for two bedrooms)
j. minimum unreserved parking spaces for tenants
k. 57 visitor parking spaces (228 apartments = 57 visitor spaces) l. = 488 total parking spaces on Lot A
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m. LOT B. There shall be a total of forty-three (43) parking spaces on Lot B, and these parking spaces shall be allocated as follows:
n. There will be a maximum of 37 reserved parking spaces available for tenants, no unreserved parking spaces for tenants, and 6 visitor parking spaces. Thus, the 43 parking spaces are allocated as follows:
o. 37 maximum reserved parking spaces for tenants (based on 1 space for studio apartment, 1 space for one bedroom, and 2 spaces for two bedrooms)
p. minimum reserved parking spaces for tenants
q. 6 visitor parking spaces
r. = 43 total parking spaces on Lot B
s. Reserved Parking Spaces for Tenants. The Applicant shall assign reserved parking spaces for tenants of the Project as provided herein.

However, the Applicant shall not reserve for or assign to any tenant more reserved parking spaces than as follows: 1 parking space for a studio apartment; 1 parking space for a one-bedroom apartment; and 2 parking spaces for a two bedroom apartment. The Applicant shall not reserve any “visitor” parking spaces on the Project.

The Applicant shall prepare a written parking plan (the “Parking Plan”) and identify thereon which garages, carport parking spaces, and uncovered parking spaces are assigned to each apartment as reserved parking spaces for each apartment and the location of all unreserved tenant parking spaces and visitor parking spaces in the Project. The Applicant shall submit the Parking Plan to the City Manager on or before September 1, 2023 for approval thereafter by the City Council.

With regard to the parking spaces on Lot A, the Applicant shall assign one (1) garage parking space to each apartment (to the extent there are sufficient quantity of garages, noting there are more apartments than garages) for the exclusive use of that apartment so that all garage parking spaces on Lot A are assigned to specific apartments.

After assigning all garage parking spaces to specific apartments, then the Applicant shall assign one (1) covered carport parking space to each apartment that does not have a garage parking space assigned to the apartment (to the extent there are sufficient quantity of carport parking spaces, noting that there are more apartments than garages and carport parking spaces combined). After all garage parking spaces and carport parking spaces have been assigned to Resolution 2022-006
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apartments, then the Applicant shall assign one (1) uncovered parking space to each of the remaining apartments that do not have a garage or carport parking space assigned to that apartment. In addition, if an apartment is a two-bedroom apartment, then the second reserved parking space assigned to a two-bedroom apartment will be an uncovered parking space.

The garages that are located in the building where the apartment is located will be assigned first to the apartments located in that same building and then to the apartments located closest thereto. The same principal will be used to assign reserved carport parking spaces and reserved uncovered parking spaces.

The apartment and the garage and/or covered carport parking space and/or uncovered parking space(s) assigned to each specific apartment for the exclusive reserved use of the tenant of that apartment shall constitute single premises for the purpose of the rental of that apartment.

Tenants who have apartments with assigned reserved parking space(s) (either garage, carport, and/or uncovered parking space) shall be required by their lease to park in their assigned reserved parking spaces and not in the unreserved parking spaces. The Applicant shall strictly enforce this requirement by providing appropriate enforcement provisions and remedies in the leases, including monetary penalties and/or towing for violations.

For the purpose of example and not for limitation, if the tenant of a two-bedroom apartment consists of two occupants with two vehicles and the tenant’s apartment has a reserved garage parking space and a reserved uncovered parking space assigned to the tenant’s two bedroom apartment, then the tenant shall park in the garage and reserved uncovered parking space and shall not park in an unreserved parking space. However, if there are three occupants of the two-bedroom apartment and the assigned garage and reserved uncovered parking spaces are being used by two of the occupants, then the third occupant will park in an unreserved uncovered parking space.

The purpose of the requirements herein is to have each garage and covered carport parking space assigned to a specific apartment to ensure that all garages and covered carport parking spaces in the Project will be used for parking before the unreserved tenant parking spaces are used, thereby making available to tenants of the Project as many unreserved uncovered parking spaces as possible for the shared use of all tenants of the Project. With parking spaces available Resolution 2022-006
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in the Project, tenants are discouraged from parking off site in the neighborhood surrounding the Project.
1) Request by the Applicant for Conversion of Unreserved Parking Spaces to become Reserved Parking Spaces on Lot A. The
existing development on the Property that will be demolished to construct the Project does not have sufficient parking spaces for the tenants and visitors of the Property. Consequently, many tenants and visitors to the Property park on the streets in the neighborhood near the Property. This has caused a shortage of parking in the neighborhood and other negative impacts.

The Applicant has represented to the residents of the
neighborhood and area near the Property and the City Council that the 531 parking spaces to be provided by the Project will provide a sufficient quantity of parking spaces for tenants and visitors of the Project so that they can park on the Property, not on the streets of the surrounding neighborhood. However, if the Applicant wants to increase the amount of uncovered reserved parking spaces on Lot A by converting some of the “unreserved” uncovered parking spaces to become “reserved” uncovered parking spaces
(Applicant shall not increase the amount of reserved parking spaces on Lot B), then the Applicant may request approval from the City Council to convert up to thirty-one (31) of the eighty-eight (88) total unreserved uncovered parking spaces to become reserved uncovered parking spaces.

In addition to the foregoing, the opportunity for the Applicant to request modification of the Parking Plan as provided herein shall include the opportunity for the Applicant to request modification of the allocation of reserved and unreserved parking spaces for tenants of the Project and consideration of other issues concerning the management of tenant and visitor parking for the Project in order to achieve the goal of preventing tenants and visitors of the Project from parking on South Nardo Avenue and on the streets in the surrounding neighborhoods.

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In connection with the Applicant’s request, the Applicant shall submit a proposed modified Parking Plan which identifies and changes such unreserved uncovered parking spaces to become reserved uncovered parking spaces (the “Modified Parking Plan”) to the City Council for approval. The Modified Parking Plan shall be accompanied by documentary analysis, data, and information which establish and demonstrate that the Appplicant’s proposed Modified Parking Plan will not cause, encourage, or otherwise result in tenants or visitors of the Project parking on the streets in the neighborhood adjacent to the Project and will eliminate and prevent on-street parking by tenants and visitors.

The goal and actual effect of any Modified Parking Plan shall be to have all tenants and visitors of the Project park in the Project, not on nearby streets, and eliminate or prevent their on-street parking and the reasons or incentives for tenants and visitors to park on the streets. The Modified Parking Plan shall demonstrate that it will achieve this goal and produce the actual desired result and thereafter it shall actually achieve this goal.

If the Applicant elects to request an increase in the amount of reserved uncovered parking spaces by converting unreserved uncovered parking spaces as provided herein, then the Applicant shall submit the Modified Parking Plan and supporting analysis and documents required herein to the City Manager on or before September 1, 2023 for consideration and approval thereafter by the City Council.

Unreserved Parking Spaces for Tenants. All unreserved parking spaces shall remain open for parking by all tenants of the Project who do not have a reserved parking space for their use as provided herein. The leases for tenants shall provide that tenants shall use their reserved parking spaces first before using any unreserved parking spaces. The Applicant shall strictly enforce this requirement by providing appropriate enforcement provisions and remedies in the leases, including monetary penalties and towing for violations.

Visitor Parking Spaces. The visitor parking spaces shall be marked with signage as “visitor parking.” The size, design, and location of signage for visitor parking shall be in compliance with the City’s Off-Street Parking Manual and approved by City Manager. The visitor parking spaces shall be distributed evenly throughout the Project as approved by City Manager. The Applicant shall not reserve any “visitor” parking spaces on the Project.

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a. Tenants Shall Not Park in Visitor Parking Spaces. Tenants shall not be permitted to park in visitor parking spaces. The leases for tenants of the Project shall provide that tenants shall not park in parking spaces with signage stating the space is “visitor” parking.

Notwithstanding the foregoing, tenants may park in visitor parking spaces only between the hours of 11:00 p.m. and 8:00 am. if such spaces are not in use during this time period. The Applicant shall strictly enforce this requirement by providing appropriate enforcement provisions and remedies in the leases, including monetary penalties and towing for violations.
b. No Charge for Parking. There shall not be any charge or fee to park in the Project, whether for any tenant of the Project (reserved or unreserved parking spaces) or their respective invitees, guests, and visitors. There shall not be any charge or fee for any parking spaces for tenants (reserved or unreserved), whether the parking spaces are provided as required by zoning or not, any parking spaces for visitors, and for any parking spaces constructed in the Project that exceed the total amount of spaces required by zoning.
c. The foregoing prohibition against the Applicant charging for any parking spaces in the Project shall not apply to the Applicant charging a higher rent for each apartment that includes exclusive reserved use of a specific identified garage and/or covered carport parking space assigned to that specific apartment for the exclusive use of that apartment. However, in order to permit this exemption from the prohibition against charging for parking spaces, each garage and uncovered carport parking space in the Project shall be assigned to a specifically identified apartment for the exclusive use of that apartment, with one garage or covered carport parking space assigned to each apartment as provided in Subsection (c) above. The garage parking spaces and covered carport parking spaces shall be assigned to the extent of the quantity of garages and covered carport parking spaces in the Project (i.e., there are more apartments than garages and carport parking spaces).
d. Access to Parking. There shall not be any gate, barrier, or other restriction to access any driveway/vehicle access to the Project. e. No Assignment to Third Party. No parking spaces in the Project shall be assigned, sold, conveyed, transferred to any third party owner or otherwise reserved for any tenant beyond the amount of parking spaces allocated to the tenant’s type of apartment as provided herein. f. Garages Shall be Used for Parking. All leases and rental agreements for tenants or occupants of the Project shall provide that garages and Resolution 2022-006
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covered parking spaces in carports shall be used for vehicle parking and incidental storage of personal property. The Applicant shall strictly enforce this requirement by providing appropriate enforcement provisions and remedies in the leases, including monetary penalties for violations.
g. All garages shall be pre-wired for electric vehicle charging as identified in exhibit provided to City Council on December 17, 2018 h. A minimum of 15 electric vehicle (EV) charging stations shall be installed consistent with the exhibit provided by City Council on December 17, 2018. Tenants shall not be permitted to park in EV parking spaces unless used for charging purposes. The leases for tenants of the Project shall provide that tenants shall not park in EV parking spaces with signage stating the space is “EV” parking.

Notwithstanding the foregoing, tenants may park in EV parking spaces only between the hours of 11:00 p.m. and 8:00 am. if such spaces are not in use during this time period. The Applicant shall strictly enforce this requirement by providing appropriate enforcement provisions and remedies in the leases, including monetary penalties and towing for violations.
i. Fifty-seven (57) guest parking spaces shall be marked as permanent guest spaces and may not be assigned or reserved for any tenant, occupant or employee.

IV. Parking Management Plan. A The Applicant shall prepare a written Parking Management Plan and identify thereon which garages, carport parking spaces, and uncovered parking spaces are assigned to each apartment as reserved parking spaces for each apartment and the location of all unreserved tenant parking spaces and visitor parking spaces in the Project. The Applicant shall submit the onsite Parking Management Plan to the City Manager on or before September 1, 2023 for approval. The Parking Management Plan, as approved by the City Council, shall be in place to prevent resident use of adjacent street parking. The Parking Management Plan shall contain provisions in tenant leases that clearly restrict the garage space use from impeding the ability to park an automobile in the garage and allow garages to be inspected periodically.

V.IV. LANDSCAPE PLAN.

The Applicant has submitted to the City Council a Final Landscape Plan dated December 20, 2021, which is part of the proposed pProject modifications under for consideration by the City Council concerning the Development Review Permit Modification Request for the Project. The Resolution 2022-006
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Applicant has also submitted a Landscape Zone Plan dated February 24, 2022, which identifies landscape species and material for identified Landscape Buffer Areas which shall be incorporated into the Final Landscape Plan.

The Final Landscape Plan shall comply with the following requirements:
a. Mix. The mix of trees shall be at least 70% or more evergreen and no more than 30% deciduous.
b. Quantity. At a minimum, the quantity of trees and other vegetation shown on the Landscape Plan shall be maintained. The landscape buffer areas shall be planted with trees and vegetation that provide at least ninety percent (90%) coverage of the landscape buffer area. c. Quality. Trees and other vegetation shall be the same or better architectural significance and design value (as these terms are customarily used by landscape design professionals from time to time during the life of this Project) and quality as shown on the Final Landscape Plan.
d. Requirement to Maintain Landscape Trees and Vegetation. The Applicant shall maintain the landscape buffer areas with trees and vegetation as specified in the Landscape Zone Plan that shall be incorporated into that have a level of architectural significance and design value and quality that is substantially the same or better than as shown on the Final Landscape Plan. Such trees and other vegetation shall not be removed unless concurrently replaced. e. Removal and Replacement. Trees and other vegetation shall not be removed without concurrently replacing same. When replacing trees and other vegetation, the Applicant shall maintain the same or better size and species level of architectural significance, design value and quality shown on the Final Landscape Plan. Also, when replacing trees, the Applicant shall replace with equal or larger size of the trees as indicated in the Landscape Zone Plan and Final Landscape Plan. f. Height of Trees at Maturity. Final Landscape Plan. The Applicant shall submit the “Final Landscape Plan” for consideration and approval by the City Council. The Final Landscape Plan shall specify the sSelection of the species of trees, (including the height of trees at maturity,) and placement of the trees throughout the Project, including in all landscape buffer areas on the pProject exteriorperimeter, for the Final Landscape Plan and shall avoid consider and mitigate potential for blocking views of residences located on South Nardo Avenue that filed view claims concerning this Project.

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(i) Landscaping and tree heights shall be specifically addressed as part of the Final Landscape Plan and shall demonstrate that, at maturity, trees and landscape shall not exceed the height of Building 12 within the view corridor between Buildings 2 and 3, Buildings 11 and 12 and Buildings 13, 14 and 17.
(ii) LANDSCAPE BUFFER AREAS.
(iii) Landscape Buffer Areas. The “landscape buffer area” means the area between the facades of the buildings in the Project that are located along the boundary line of the Property and the adjacent boundary line of the Property or the edge of the sidewalk at a public street that is closest to the building facades, whichever is closer to the building facades. Where there is a parking area along the perimeter of the Project, the Landscape buffer area is the area between the boundary line of the Property or the edge of the sidewalk at a public street that is closest to the parking area and the edge of the paved parking area. However, at various locations along the perimeter of the Project on the south and west sides of the Project there is no sidewalk, and the landscape buffer areas consists of the area between the building facades (or edge of the paved parking area) and the boundary line of the Property. (iv)There is a landscape buffer area around the entire perimeter of the Project, except at the three locations where a driveway crosses the landscape buffer area. The landscape buffer areas are provided by the placement of the buildings and structures set back from the property boundary lines as depicted on the Project Plans, including the Site Plan (Sheet O-1.1) and Preliminary Conceptual Landscape Plan (Sheet L-0.1) that are part of the Project Plans.
(v) The landscape buffer areas are shown on the Project Plans, including the Site Plan and Preliminary Grading Plan therein. The landscape buffer area shall be increased as described herein and specifically depicted and identified on the Site Plan and the updated final Landscape Plan that are part of the Project Plans. (vi)The landscape buffer areas shall be planted with trees and other vegetation as provided herein to screen the Project from the public streets, adjoining properties, and other properties in the area of the Project. The landscape buffer areas shall be planted with trees and vegetation that provide at least ninety percent (90%) coverage of the landscape buffer area.

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(vii) Modify Landscape Buffer Areas. The minimum width of the landscape buffer areas between Building #25 and the parking area located east of Building #25 and the property to the south, and at Building #6 shall be expanded as follows:
(viii) Building #25 - a minimum twenty-five (25) feet wide; (ix)Parking area east of Building #25 – twenty (20) feet wide; (x) Remove hardscape improvements in Landscape Buffer area on north side of Building #6.
(xi)Requirement to Maintain Minimum Size of Landscape Buffer Areas. The dimensions (i.e., distance east to west, and north to south) and useable area of the landscape buffer areas as set forth herein shall be maintained and shall not be reduced. No portion of any landscape buffer area shall be converted to patios, decks, walkways, driveways, or other non-landscape uses, except as provided in subsection (d) below entitled “Exceptions to Landscape Buffer Area.”
(xii) Exceptions to Landscape Buffer Area. Except as expressly permitted herein, no patios, decks, walkways, seating, or other hardscape improvements, or other non-landscape uses are permitted in any of the landscape buffer areas referenced herein:
(xiii) Two Driveways Along South Nardo Avenue and One Driveway on Stevens Avenue. There shall not be more than three (3) driveways/vehicle entrances to the Project. There are two driveways that provide access to the Project along South Nardo Avenue and one driveway on Stevens Avenue that serves Building #25; and
(xiv) Walkways in the Landscape Buffer Areas Next to and Along the Building Facades. Allow one walkway in the landscape buffer areas next to the building facades. These walkways are shown on the Preliminary Grading Plan. These walkways provide access to the apartments in these residential apartment buildings. These walkways shall not be wider than four (4) feet, including any builtin benches, seating, planters, or other improvements associated with or concerning the walkway.
(xv) Pocket Park on South Nardo Avenue. There shall be an open space park area located along and contiguous with South Nardo Avenue between Building #2 and Building #4 as identified on the Preliminary Grading Plan. The minimum dimensions of the area Resolution 2022-006
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of the park are fifty-three (53) lineal feet measured generally from north to south (approximately perpendicular to South Nardo Avenue) and ninety-five (95) lineal feet measured generally from east to west. This open space area will be used as a park for residents and visitors of the Project. The entire area of this park area will be landscaped with grass and other vegetation as set forth on the Landscape Plan that provide at least ninety percent (90%) coverage of the area. There shall not be any hardscaped area or other improvements constructed or installed within this park area, except the area for installation of a small patio and barbeque, not to exceed a total of two hundred (200) square feet, at the location(s) shown on the Project Plans.
c. The Final Landscape Plan shall be reviewed and approved by the Santa Fe Irrigation District/San Elijo Joint Powers Authority (JPA) and the County of San Diego Department of Environmental Health prior to building permit issuance.
d. Engineering review shall be conducted by EsGil for Final Landscape Plan Construction Drawings contained on Sheets LC-01 through and LC-13 prior to building permit isuance.

B. Engineering Department Conditions:

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outbound left turn lane, and one outbound right turn lane.

Additionally, the applicant shall install “Keep Clear” legend on Valley Avenue at Turfwood driveway.
(b) Working with the City Engineer and the adjacent property owner to improve the sight visibility line for vehicles exiting Turfwood Lane. If the adjacent property owner is uncooperative, the applicant is not obligated to provide any improvements outside of the existing right of way.
(c) Installation of a “Solar Powered Electronic Speed Sign” on Southbound Stevens Avenue or other means to calm traffic approaching Turfwood driveway access.
(d) The Applicant shall monitor the traffic pattern and delay at the Turfwood Lane Access to the Valley Avenue four times (two times during morning and two times during afternoon peak hours) within one year after full implementation of the above measure. Upon completion of the field observation and monitoring efforts, a report prepared by a professional traffic engineer shall be delivered to the City Engineering office. If additional enhancement is warranted, the Applicant shall implement the pProject’s share of the required improvements at a cost not to exceed $50,000 to the satisfaction of the City Engineer.
(2) The Applicant shall reconstruct the southwesterly curb return at the intersection of Nardo Avenue and Stevens Avenue. The Applicant shall place thermoplastic continental pedestrian crossing striping at the north and west side of the intersection. The Applicant shall replace the pedestrian ramps at the northwest corner and east side of the intersection to the satisfaction of the City Engineer. (3) On west side of Valley Avenue, south of Nardo Avenue provide appropriate regulatory signs to prohibit left turn out of the proposed driveway for the senior housing complex.
(4) On south Nardo Avenue west of Stevens Avenue install a raised concrete median and corresponding signage, striping, and pavement legends to channelize traffic. This may require elimination of on-street parking along South Nardo on both sideS of the street.
(5) On northwest, southwest, and northeast corner of South Nardo Avenue and Fresca Street, install concrete curb extensions. This will require elimination of two (2) on-street parking spaces along south side of Nardo Avenue. The proposed curb extensions shall -
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be designed to accommodate ADA compatible pedestrian ramps on both sides of Nardo Avenue. The applicant shall also install thermoplastic continental crosswalk for pedestrian crossing at the stop-controlled north leg of South Nardo Avenue/Fresca Street and a solar powered pedestrian crossing flashing sign with
corresponding signage.
(6) On Nardo Avenue install raised concrete chokers with sufficient lengths and widths. The applicant shall enter into an Encroachment Maintenance and Removal Agreement (EMRA) for maintenance of any landscaping and irrigation system in these features.

Additionally the applicant shall install two “Solar Powered Electronic Speed Signs” within this segment of Nardo Avenue.
(7) The Applicant shall place thermoplastic continental pedestrian crossing striping on Nardo Avenue north side of Solana Circle and on Solana Circle west side of Nardo Avenue to the satisfaction of the City Engineer. City will perform appropriate analysis and report to the City Council. If directed by the City Council, City Staff would facilitate the installation of new stop signs on south Nardo Avenue at Nardito Lane and Solana Circle with corresponding signs and legends.
(8) The applicant Shall Construct two Chokers (Physically narrowing the road width by extending the curbs and installing a short median section) between Nardito Lane and Fresca Street with
corresponding signs and pavement legends to the satisfaction of the City Engineer.
(9) On both sides of South Nardo between Solana Circle and Stevens Avenue install Sharrow marking pavement legends.
(10) Construct all sewer lateral connections to the City sewer main consistent with City Standards.
(11) Construct all proposed driveway entrances to the pProject on South Nardo Avenue and Valley Avenue consistent with City Standards. (12) Construct all storm drain connections to the City curb or storm drain system consistent with City Standards.
(13) The existing sewer main serving this property, proposed to be replaced, shall be abandoned in the public right-of-way by plugging the street manhole connection and plugging the pipe at the right-ofway line. The sewer connection(s) for 821 Stevens Avenue shall be capped at the main.
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(14) Connect to the existing recycled waterline on Stevens Avenue. The applicant shall coordinate with Santa Fe Irrigation District, San Elijo Joint Powers Authority and County Health Department for this extension project. All irrigation system including the ones in the public right of way shall be provided by recycled water. (15) The Applicant shall continue to work with City Staff to develop the Traffic Calming Plan referenced herein. Upon completion, the Traffic Calming Plan shall be subject to future consideration and approval by the City Council.

6. ENFORCEMENT: Pursuant to SBMC 17.72.120(B) failure to satisfy any and all of the above-mentioned conditions of approval is subject to the imposition of penalties as set forth in SBMC Chapters 1.16 and 1.18 in addition to any applicable revocation proceedings. The conditions of approval for the pProject modifications shall remain in place until such time they may be amended or superseded by subsequent City Council action.

However, the Applicant shall not be required to pay or perform any settlement unless such settlement is approved by Applicant.

9. NOTICE TO APPLICANT: Developer is hereby notified, as required by Government Code Section 66020, that the approved plans and the conditions of approval and ordinances governing fees and exactions in effect at the time the pProject modifications are is approved constitute written notice of the description of the Resolution 2022-006
2020-002 Solana Highlands DRP Modification and SDP Waiver H.G. Fenton

Page 32 of 32 ends

dedications, reservations, amount of fees and other exactions related to the pProject. As of the date of project approval of Project modifications, the 90- day period has begun in which developer may protest any dedications, reservations, fees or other exactions imposed by the City. To protest the imposition of any fee, dedications, reservations or other exactions described in this resolution you must comply with the provisions of Government Code Section 66020. Failure to file a protest in compliance with all of the requirements of Government Code Section 66020 will result in a legal bar to challenging the dedications, reservations, fees or other exactions.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Solana Beach, California, held on the 19
h day of March February 2022, by the following vote:

AYES: Councilmembers –
NOES: Councilmembers –
ABSENT: Councilmembers –
ABSTAIN: Councilmembers –
LESA HEEBNER, Mayor
APPROVED AS TO FORM: ATTEST:

JOHANNA N. CANLAS, City Attorney ANGELA IVEY, City Clerk 1 From: Mike Nunn <[email protected]>
Sent: Wednesday, January 26, 2022 1:27 PM
To: Joseph Lim
Subject: Fwd: HG Fenton project discussion at this evening's city council meeting –– Case No.

DRP MOD 20-002 for DRP/SDP/VTM 17-14-29
Begin forwarded message:

From: Mike Nunn
Subject: HG Fenton project discussion at this evening's city council meeting –– Case No. DRP MOD 20-002 for DRP/SDP/VTM 17-14-29
Date: January 26, 2022 at 1:22:14 PM PST
To: [email protected]
Cc: Phil Weber >
This note is to express our support of using the view assessment process to evaluate changes proposed by HG Fenton. We (Phil Weber and Mike Nunn) live at Nardito Lane and were involved in the prior view assessment for the Solana Highlands renewal project. Our claims of potential loss of view, together with those of others, led to significant changes in the original project design through the city’s view assessment process .

HG Fenton has now requested a change to the approved plan, including a 5 ft increase in height for 139.9 ft of one of the buildings, and moving a second building into a new area where views might be impacted. We would request that these changes be treated the same as any other change in structure heights in the city: that story poles be put in place so neighbors can assess the impact that these modifications will have on the surrounding community. … If any other home were going to increase in height by 5 feet, story poles would be required for the change. If any other building were going to be moved by 60 feet, we would need to evaluate it. And if a large balcony, with a modification to the roof line were to be added to a house, that would also need by evaluated by our city's view assessment process.

We urge the city council to follow the laws and codes of the City of Solana Beach, enforce the view assessment process, and deny the applicants request to proceed without full evaluation of their proposed changes to previously approved plans.

Thank you,
Michael Nunn, PhD
Nardito LAne
Solana Beach, CA 92075
-
■
2 CITY COUNCIL ACTION:
______________________________________________________________________ ______________________________________________________________________ AGENDA ITEM # C.2.

STAFF REPORT

CITY OF SOLANA BEACH
TO: Honorable Mayor and City Councilmembers
FROM: Gregory Wade, City Manager
MEETING DATE: March 9, 2022
ORIGINATING DEPT: Finance
SUBJECT: Council Consideration of Resolution 2022-025 Approving the Adoption of Mid-Year Budget Adjustments for Fiscal Year 2021- 22, Authorizing the Creation of the Information Technology Director Position and Job Description, and Approving
Adjustments to the Fiscal Year 2021-2022 Salary Schedules BACKGROUND:

During the course of any year, as new budgetary information becomes available, Staff presents that information to the Council for consideration when adjustments are recommended to the Adopted Budget.

In addition, it is the responsibility of the City Manager to consistently engage in organizational analysis of various City operations to improve efficiency and effectiveness and ensure the most economical means of conducting business is achieved. Section 2.08.070, Section D, of the Solana Beach Municipal Code (SBMC), “Powers and Duties (of City Manager)” Administrative Reorganization of Offices, states:

It shall be the duty and responsibility of the City Manager to conduct studies and effect such administrative reorganization of offices, positions or units under the City Manager’s direction as may be indicated in the interest of efficient, effective, and economical conduct of the City’s business.

Staff is recommending the following:

1. Revising appropriations to the Fiscal Year 2021-22 Annual Budget (Exhibit A).

2. Creation of the Information Technology (IT) Director position in order to provide growth and advancement opportunities within the city.

3. Addition of the IT Director position to pay grade M-8 of the Executive and Management Salary Schedule (Exhibit B).

4. Approval of adjustments to the FY 2021-2022 Part-time/Temporary/Seasonal Salary Schedule (Exhibit C).

March 9, 2022
FY 2021-22 Mid-Year Budget Amendments

Page 2 of 10 ends

This item is before the City Council for consideration of Resolution 2022-025 (Attachment 1) approving the adoption of mid-year budget adjustments for Fiscal Year (FY) 2021-22, authorizing the creation of the IT Director position and job description, and approving adjustments to the 2021-22 Salary Schedules.

DISCUSSION:

The City of Solana Beach’s (City) Operating Budget Policies state that total expenditures of a particular fund may not exceed that which is appropriated by the City Council without a budget amendment. In addition, Section 3.08.040 of the Solana Beach Municipal Code limits the purchases by departments within the total departmental budget appropriations. Due to the economic impacts created by the COVID-19 pandemic in FY 2020-21, the recovery in FY 2021- 22 Budget has been and continues to be of particular interest.

Staff is recommending the City Council authorize the Finance Director/City Treasurer to amend the FY 2021-22 Adopted Budget for certain revenue and expenditure appropriations.

Additionally, Staff recommends approval for the creation of the IT Director position and updates to the FY 2021-22 Executive Management and Management salary schedule (Exhibit B) as well as the Part-Time/Seasonal/Temporary salary schedule (Exhibit C). Specific salary schedule changes and amendments to the FY 2021-22 Adopted Budget are discussed below in detail and categorized by General Fund and other funds.

General Fund Amendments
General Fund – Revenues
Staff analyzed revenues received by the City through December 2021. A trend analysis was performed to compare actual receipts received versus the annual budget. Any significant variances were analyzed in detail and projected through the end of the fiscal year. In a few cases, budget adjustments are being recommended based on other separate analyses or projections.

General Fund Amendments – Revenues
• Property Tax
Collections for this revenue category are ahead of estimates through December. The County of San Diego has adjusted the projected collections due to higher than projected collections from delinquencies and levy adjustments. Staff is recommending Property Tax revenue be increased by $80,000 from $9,047,000 to $9,127,000. • Real Property Transfer Tax
Collections for this revenue category are ahead through December as compared to original budget estimates. Staff is recommending Real Property Transfer Tax revenue be increased by $150,000 from $200,000 to $350,000.
• Sales Tax
Collections of Sales Tax revenue continue to rebound from previous year lows. Staff met with HDL advisors, who are projecting a continued brisk recovery in FY 22 in the restaurant, general consumer goods, and fuel sectors. Based on information from HDL, March 9, 2022
FY 2021-22 Mid-Year Budget Amendments

Page 3 of 10 ends

Staff is recommending Sales Tax revenue be increased by $570,000 from $3,560,300 to $4,130,300.
• Transient Occupancy Tax
In the beginning of the year, Staff conservatively estimated revenue from hotel and short-term vacation rental transient occupancy tax (TOT) based on on-going COVID-19 impacts. The City has experienced higher than anticipated TOT from both Hotels and short-term vacation rentals. Due to this, Staff is recommending short-term vacation rental TOT revenue be increased by $75,000 from $475,000 to $550,000 and hotel TOT revenue be increased by $150,000 from $900,000 to $1,050,000. • Building Permits Revenue
Due to a few large one-time project submittals from Solana 101, Staff is proposing a budget increase to Building Permits of $57,500. This adjustment would increase Building Permits budgeted revenue from $310,000 to $367,500.
• Building Plan Check Fees
Building Plan Check Fees through December 2021 are lower than estimated in the adopted budget. Staff is proposing a budget decrease to Building Plan Check Fees of $50,000 based the trend analysis and input from the Community Development Department. This adjustment would decrease Building Plan Check Fees budgeted revenue from $320,000 to $270,000.
• Interest Revenue
The Adopted Budget included $165,000 for interest revenue that would be received on its investments held with the Local Agency Investment Fund (LAIF) and Chandler Asset Management. Due to a continued low interest rate environment, Staff is recommending interest revenue be decreased by $25,000 to $140,000.
• Planning Application & Public Hearing Fees
The Adopted Budget appropriated $157,500 for Planning Application & Public Hearing fee revenue. Based on elevated activity in planning submittals and public hearings, Staff is recommending an increase in this revenue category by $107,500 to a total of $265,000.
• Fines and Penalties
The Adopted Budget appropriated $110,000 for California Vehicle Code (CVC) Fines revenue, $90,000 for Parking Citations, and $175,000 for Redflex Citations. Due largely to effects of the COVID-19 pandemic and a partial year suspension of parking violation enforcement, Staff is recommending a decrease in these revenue accounts by $160,000, bringing CVC Fines to $70,000, Parking Citations to $30,000, and Redflex Citations to $100,000.
• Public Facilities Fees
Staff is recommending an increase in this revenue category by $60,000 due to one-time project fee submittals from Solana 101. The recommended increase would bring the budgeted revenue for this category to $125,000.

March 9, 2022
FY 2021-22 Mid-Year Budget Amendments

Page 4 of 10 ends

• General Fund Transfers-In – ARPA Funds
When the FY 2021-22 Budget was adopted, the City was operating under the US Department of Treasury interim guidance regarding its allocation of $3,180,686 and the eligible uses of those funds from the American Rescue Plan Act (ARPA). This guidance established a methodology for recipients to calculate its reduction of revenue, for each calendar year affected by COVID-19, as an eligible use of ARPA funds. Recently, the Treasury released its final guidance for ARPA funds. As part of the final guidance, jurisdictions now have a standard deduction for revenue replacement of $10 million.

This means that cities may claim revenue losses up to $10 million without applying the calculation methodology established under the interim guidance. Our original revenue loss calculation for calendar year 2020 was $2,239,400 and the adopted budget in FY 22 was set accordingly, with the remaining $941,300 of the total allocation to be applied in FY 23. Now that the City will no longer need to perform the revenue loss calculation, Staff is recommending reducing the General Fund transfers-in budget by $650,000 to match the actual ARPA funds received in FY 22 of $1,590,350. The remaining $1,590,350 will then be recognized as revenue in FY 23 when the final allocation of funds is received.

A summary of the recommended changes for General Fund revenues are listed in the table below:

Property Tax $ 80,000
Real Property Transfer Tax 150,000
Sales & Use Tax 570,000
Transient Occupancy Tax (TOT) 150,000
Short Term Vacation Rental TOT 75,000
Business Registration 55,000
Building Permits 57,500
Building Plan Check Fees (50,000)
Planning Application & Public Hearing Fees 107,500
Engineering Plan Check Fees (40,000)
Public Facilities Fees 60,000
Interest (25,000)
CVC Fines (40,000)
Parking Citations (60,000)
Redflex Citations (75,000)
Operational Revenues $ 1,015,000
General Fund Transfers-In (650,000)
General Fund Transfers-In $ (650,000)
Total General Fund Revenues $ 365,000
Proposed Revenue Budget Adjustements
General Fund - Mid Year
Fiscal Year 2021-22
Additions/
Account (Deletions)
March 9, 2022
FY 2021-22 Mid-Year Budget Amendments

Page 5 of 10 ends

General Fund Amendments – Expenditures
Staff has analyzed expenditures through December 2021 against budgeted expenditures.

Based on this analysis, Staff is recommending increases to General Fund expenditure accounts totaling $358,000.

Professional Services
The largest expenditure adjustment is an increase of $100,000 for building services. This increase is for services provided by EsGil, whose compensation is based on building permit and plan check revenue received.

Staff is requesting an increase of $28,200 in the Information Technology department. This increase is for City facilities internet service of $26,000 and $2,200 for Adobe Sign licenses to expand the City’s ability to route and collect electronic signatures on documents.

An appropriation of $6,000 is being requested for temporary staffing in the Finance Department.

The additional staffing is to assist finance staff with processing Business Certificate and ShortTerm Vacation Rental license renewals.

Equipment and Supplies Expenditures
Due to unbudgeted costs related to COVID-19, Staff is asking for an increase in the amount of $6,000 in the Civil Defense department. These funds are for additional face masks that were needed during both the Delta variant and the recent Omicron COVID surges.

City Hall lobby furniture has reached the end of its useful life. Staff is requesting $5,000 to replace and install new furniture in the City Hall lobby.

The FY 2021-22 adopted budget included $43,500 for community grants. On June 23, 2021, City Council approved $55,000 in community grants due to additional donated funds received in the current fiscal year. Staff is requesting to formally appropriate the difference, $11,500, in the community grants expense account.

Salaries & Benefits
The Finance Department has analyzed costs associated with Salaries and Fringe Benefits through the end of December 2021. The following changes to Salaries and Fringe Benefits are being requested as follows:
• With an increased need for Information Technology services, Staff is requesting $65,135 for the addition of a Network Systems Engineer position. This position would support the development and administration of the City’s local and wide area network, including network testing, support, preventative maintenance, and hardware and software configuration. Of the total, $61,880 would be in the General Fund. • Due to increased demand on services provided by the Human Resources Department, there is an operational need to add a Senior Human Resources Analyst position. This position would provide support to a variety of HR duties, including recruitment, salary and benefit administration, workers compensation, and employee relations. The impact in this fiscal year is an addition of $55,345 in salary and benefits, of which $52,575 will be in the General Fund.

March 9, 2022
FY 2021-22 Mid-Year Budget Amendments

Page 6 of 10 ends

• Due to increased workload, the Finance department has been working more overtime than projected. Staff is requesting an increase of $2,000 to their overtime budget. • Continued part-time support has been included in the City Clerks department. The department is currently progressing through a records retention and destruction project and software conversion. The fiscal impact of the additional services is $20,000 in the current fiscal year.
• Due to increased workload and responsibilities for the Senior Management Analyst, staff has included a budget increase of $12,675 in the City Manager’s department for the current fiscal year.
• Recruiting and retaining Lifeguards and Recreation Leaders has become increasingly difficult for the City. Today’s employment market is extremely competitive due to an ongoing workforce shortage. Many employers are finding it very challenging to attract, hire and retain employees. This competitive market has forced both private and public employers to reevaluate the entry level pay and recruitment techniques to attract applicants. As a Public entity, these challenges are even more relevant. A comparison of City of Solana Beach’s salaries compared to other public agencies in San Diego County indicates that the City’s part-time/temporary/seasonal salary schedule is no longer competitive and allowable work hours are also limited by the California Public Employee Retirement System (CalPERS) for part-time employees.

The Marine Safety department usually hires 10 to 15 part-time Lifeguards annually to support day to day operations and to provide support to the City’s very popular Junior Lifeguard program. Lifeguards respond to emergencies and are responsible to protect life and property along City managed beaches.

Additionally, each summer, the Recreation department hires 4 to 5 part-time Recreation Leaders to assist in the operation and execution of the City’s summer day camps. Prior to the pandemic, recruiting and hiring qualified employees for these positions was not an issue. Currently, due to the low applicant pool, the Recreation department is struggling to find and hire qualified Recreation Leaders. The Recreation Leaders are critical in running the City’s popular day camp programs.

In an effort to improve the City’s ability provide a high level of programs and services and to attract and retain qualified Part-Time/Temporary/Seasonal employees, Staff has included an increase to the starting compensation for these positions. The starting wages for Lifeguards and Recreation leaders has been increased from $15.45 per hour to $17.76 per hour. These starting pay changes will also increase the hourly rate for the other positions throughout the Part-time/Temporary/Seasonal salary schedule. Staff estimates this change will have a fiscal impact in FY 2021-22 of $30,295, with $17,450 in the General Fund and $12,845 in the Camp Programs Fund.

Reclassifications
• Due to increased demand on services provided by the Community Services Department and City Manager’s Department, there is a need to increase the staffing level of the Management Assistant from 3/4 time to full-time. This would be retroactively effective to the pay period ending January 14, 2022. The impact in this fiscal year is an addition of $12,987 in salary and fringe benefits.
• To better align responsibilities and functions with job duties, Staff recommends reclassifying two positions in the Finance Department. The Fiscal Services Specialist position is being reclassed to Accountant and the Administrative Assistant III position is March 9, 2022
FY 2021-22 Mid-Year Budget Amendments

Page 7 of 10 ends

being reclassed to a Fiscal Services Specialist I. These reclasses would be retroactively effective to the pay period ending January 14, 2022, and would have a fiscal impact on the current year of $6,900, of which $5,360 would be in the General Fund. • Staff recommends creating and adopting an IT Director position (Attachment 2) to allow growth and advancement opportunities, as well as provide flexibility in recruitment of new employees based on skills and qualifications.

The IT Director differs from the IT Manager classification in that the IT Director has responsibilities, which include performing diverse, specialized, and complex work involving significant accountability and decision-making responsibility. The incumbent organizes and oversees day-to-day activities and is responsible for providing advanced professional-level support to the City Manager in a variety of areas. Successful performance of the work requires an extensive professional background as well as skill in coordinating departmental work. This class has overall responsibility for all leadership and operation of the Department and for application, development, implementation, policy, and procedures. The IT Director position is a FLSA exempt, at-will position under the Executive Management Employees’ salary schedule pay grade M-8 (Exhibit B). The fiscal impact in the current fiscal year is $18,180, of which $16,360 belongs to the General Fund.

A summary of the recommend changes for General Fund expenditures are listed in the following table:

Salary and Benefits
Administration $ 12,655
City Clerk Department 20,000
Community Services 12,990
Finance 7,390
Human Resources 52,575
Information Technology 78,240
Marine Safety 17,450
Professional Services
Building Services 100,000
Finance 6,000
Information Technology 28,200
Equipment
City Facilities 5,000
Special Department Supplies
Civil Defense 6,000
Other
Community Grants 11,500
Total Operational Expenditures $ 358,000
Additions/
Account (Deletions)
Proposed Expenditure Budget Adjustments
General Fund - Mid Year
Fiscal Year 2021-22
March 9, 2022
FY 2021-22 Mid-Year Budget Amendments

Page 8 of 10 ends

Other Fund Amendments
The following amendments increasing expenditures to other funds are also recommended. All wage and benefit amendments are allocations for the changes previously discussed in the General Fund Salaries and Benefits section:

CEQA COMPLIANCE STATEMENT:

Not a project as defined by CEQA
FISCAL IMPACT:

The adopted FY 2021-22 Budget initially projected a General Fund surplus of $1,555,440.

Throughout the first eight months of the fiscal year, the budget has been adjusted by various resolutions to a projected surplus of $1,337,406. With the FY 2021-22 mid-year adjustments to revenues and expenditures as discussed above, the General Fund Budget would realize an increase of revenues of $365,000 against expenditure increases of $358,00, thereby increasing the projected operating surplus by $7,000 to $1,344,406. With the inclusion of an estimated PARS Section 115 Trust contribution of $455,000, the contribution amount Council authorized from the fiscal year 2020-21 General Fund surplus, the net projected change in General Fund Balance for Fiscal Year 2021-22 is $889,406. These changes are shown on the following table:

Fund Name Description Amount
Revenue Adjustments
Transnet Record Transnet Loan Allocation $ 325,105
Development Impact Impact Fees Revenue 1,195,000
Total Revenue Adjustments $ 1,520,105
Expenditure Adjustments
Asset Replacement Marine Safety - Tower Base Repairs $ 13,400 Asset Replacement Marine Safety - Personal Water Craft $ 4,000 Asset Replacement Information Technology - Computer Replacements 12,500 Self Insurance Wages & Benefits 1,235
Transnet Record Transnet Loan Debt Service 325,105
Fedral Grants ARPA Funds Adjustment (650,000)
Camp Programs Wages & Benefits 12,845
CIP Fund Fletcher Cove Playground Design 30,000
CIP Fund City Hall Maintenace 10,000
Santitation Wages & Benefits 8,175
Total Expenditure Adjustments $ (232,740)
Total Other Funds $ 1,752,845
March 9, 2022
FY 2021-22 Mid-Year Budget Amendments

Page 9 of 10 ends

WORK PLAN:

Fiscal Sustainability
OPTIONS:
• Approve Staff Recommendation
• Deny Staff Recommendation
DEPARTMENT RECOMMENDATION:

Staff recommends the City Council adopt Resolution 2022-025:

1. Authorizing creation of the Information Technology (IT) Director position and job description.

2. Approving adjustments to the FY 2021-2022 Part-time/Temporary/Seasonal Salary Schedule and the FY 2021-2022 Executive and Management Salary Schedule.

3. Approving revised appropriations in the Fiscal Year 2021-22 Adopted Budget.

4. Authorize the City Treasurer to amend the FY 2021/2022 Adopted Budget accordingly.

Adopted General Fund Revenues $ 22,694,100
Budget Adjustments & Transfers 121,540
Mid-Year Revenue Adjustments 365,000
Total General Fund Revenues** $ 23,180,640
Adopted General Fund Expenditures $ (21,138,660)
Budget Adjustments & Transfers (339,574)
Mid-Year Expenditure Adjustments (358,000)
Total General Fund Expenditures $ (21,836,234)
Projected FY 2021-22 Surplus(Deficit) $ 1,344,406
FY 21 Surplus - PARS Contribution (455,000)
Net Projected Change In General Fund Balance $ 889,406
**Note: FY 2021-22 General Fund Revenues include $1,589,400 of American Rescue Act Plan (ARPA) funds.

March 9, 2022
FY 2021-22 Mid-Year Budget Amendments

Page 10 of 10 ends

CITY MANAGER’S RECOMMENDATION:

Approve Department Recommendation.
_______________________________________
Gregory Wade, City Manager
Attachments:

1. Resolution 2022-025

2. Information Technology Director Job Description
RESOLUTION 2022-025

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SOLANA BEACH, CALIFORNIA, REVISING
APPROPRIATIONS IN THE FISCAL YEAR 2021-22 BUDGET
AND APPROVING FY 2021-2022 SALARY SCHEDULE

ADJUSTMENTS
WHEREAS, during the course of the fiscal year, new information becomes available to Staff which require adjustments to be made to the adopted budget; and WHEREAS, Section 3.08.040 of the Solana Beach Municipal Code limits the purchases by departments within the total departmental budget appropriations; and
WHEREAS, the City’s Operating Budget Policies state that total expenditures of a particular fund may not exceed that which is appropriated by the City Council, without a budget amendment; and
WHEREAS, the City Manager, in coordination with the Finance Director, reviewed and analyzed the expenditures of the Fiscal Year 2020/21 Adopted Budget and recommend certain amendments be made to the General Fund as well as other funds; and
WHEREAS, the City Council authorizes all salary and compensation plans (Section 8.10 of the City’s Personnel Rules and Regulations); and WHEREAS, the City Council must approve a salary and compensation plan for employees including executive management, mid-management, management and confidential, the Solana Beach Employees Association – Miscellaneous (SBEA-MISC), the Solana Beach Employees Association – Marine Safety Unit (SBEA-MSU), the Solana Beach Fire Association (SBFA), and the Part-Time/Seasonal/Employee groups to coincide with fiscal appropriations each fiscal year; and NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Solana Beach, California, does hereby resolve as follows:

1. That the above recitations are true and correct.

2. That the City Treasurer is authorized to amend appropriations in the 2021- 22 fiscal year budget as further set forth in the attached Exhibit A.

3. That the City Council authorizes an adjustment to the Fiscal Year 2021-22 Executive and Management Salary Schedule to add the Information Resolution 2022-025
Budget Amendments FY 2021-22

Page 2 of 2 ends

Technology Director to pay grade M-8 as further set forth in the attached Exhibit B.

4. That the City Council authorizes adjustments to the Fiscal Year 2021-22 Part-Time/Seasonal/Temporary Salary Schedule as further set forth in the attached Exhibit C.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Solana Beach, California, this 9th day of March 2022, by the following vote:

AYES: Councilmembers –
NOES: Councilmembers –
ABSENT: Councilmembers –
ABSTAIN: Councilmembers –

______________________________
LESA HEEBNER, Mayor
APPROVED AS TO FORM: ATTEST:
_________________________________ ______________________________ JOHANNA N. CANLAS, City Attorney ANGELA IVEY, City Clerk

GENERAL FUND
Revenues
Property Tax $ 80,000
Real Property Transfer Tax 150,000
Sales & Use Tax 570,000
Transient Occupancy Tax (TOT) 150,000
Short Term Vacation Rental TOT 75,000
Business Registration 55,000
Building Permits 57,500
Building Plan Check Fees (50,000)
Planning Application & Public Hearing Fees 107,500
Engineering Plan Check Fees (40,000)
Public Facilities Fees 60,000
Interest (25,000)
CVC Fines (40,000)
Parking Citations (60,000)
Redflex Citations (75,000)
Operational Revenues $ 1,015,000
General Fund Transfers-In (650,000)
General Fund Transfers-In $ (650,000)
Total General Fund Revenues $ 365,000
Expenditures
Administration Salary and Benefits $ 12,655
City Clerk Department Salary and Benefits 20,000
Community Services Salary and Benefits 12,990
Finance Salary and Benefits 7,390
Human Resources Salary and Benefits 52,575
Information Technology Salary and Benefits 78,240
Marine Safety Salary and Benefits 17,450
Building Services Professional Services 100,000
Finance Professional Services 6,000
Information Technology Professional Services 28,200
City Facilities Equipment 5,000
Civil Defense Special Department Supplies 6,000
City Council Community Grants 11,500
Total Operational Expenditures $ 358,000

OTHER FUNDS
Revenues
Transnet Record Transnet Loan Allocation $ 325,105
Development Impact Impact Fees Revenue 1,195,000
Total Revenue Adjustments $ 1,520,105
Expenditure Adjustments
Asset Replacement Marine Safety - Tower Base Repairs $ 13,400 Asset Replacement Marine Safety - Personal Water Craft $ 4,000 Asset Replacement Information Technology - Computer Replacements 12,500 Self Insurance Wages & Benefits 1,235
Transnet Record Transnet Loan Debt Service 325,105
Fedral Grants ARPA Funds Adjustment (650,000)
Camp Programs Wages & Benefits 12,845
CIP Fund Fletcher Cove Playground Design 30,000
CIP Fund City Hall Maintenace 10,000
Santitation Wages & Benefits 8,175
Total Expenditure Adjustments $ (232,740)
Total Other Funds $ 1,752,845
Account Additions/ (Deletions)
Exhibit A
Resolution 2022-025
FY 2021/2022 EXECUTIVE MANAGEMENT AND MANAGEMENT EMPLOYEES SALARY SCHEDULE 1
JULY 2, 2021
Updated March 9, 2022
M1 Management Analyst Annual $62,959 $72,403 $81,846 $91,290 $100,734 Human Resources Analyst Monthly $5,247 $6,034 $6,821 $7,608 $8,394 Recreation Supervisor Bi-weekly $2,623 $3,017 $3,410 $3,804 $4,197 Executive Assistant to City Manager/Council Hourly $30.27 $34.81 $39.35 $43.89 $48.43 Public Works Supervisor
M2 Deputy City Clerk Annual $72,025 $81,028 $90,031 $99,034 $108,037 Senior Human Resources Analyst Monthly $6,002 $6,752 $7,503 $8,253 $9,003 Senior Management Analyst Bi-weekly $3,001 $3,376 $3,751 $4,126 $4,502 Hourly $34.63 $38.96 $43.28 $47.61 $51.94
M3 Network System Engineer Annual $79,227 $89,131 $99,034 $108,937 $118,841 Senior Accountant Monthly $6,602 $7,428 $8,253 $9,078 $9,903 Senior Civil Engineer Bi-weekly $3,301 $3,714 $4,126 $4,539 $4,952 Senior Planner Hourly $38.09 $42.85 $47.61 $52.37 $57.14 M4 Human Resources Manager Annual $87,150 $98,044 $108,937 $119,831 $130,725 Information Technology Manager Monthly $7,262 $8,170 $9,078 $9,986 $10,894 Principal Civil Engineer Bi-weekly $3,631 $4,085 $4,539 $4,993 $5,447 Principal Planner Hourly $41.90 $47.14 $52.37 $57.61 $62.85 Public Works Operations Manager
Recreation Manager
M4-A Assistant to the City Manager Annual $95,865 $107,848 $119,831 $131,814 $143,797 Finance Manager Monthly $7,989 $8,987 $9,986 $10,985 $11,983 Bi-weekly $3,994 $4,494 $4,993 $5,492 $5,992
Hourly $46.09 $51.85 $57.61 $63.37 $69.13
M5 Fire Battalion Chief (2912 annual hours) Annual $70,797 $79,647 $88,497 $97,347 $106,196 Monthly $5,900 $6,637 $7,375 $8,112 $8,850
Bi-weekly $2,950 $3,319 $3,687 $4,056 $4,425
Hourly $34.04 $38.29 $42.55 $46.80 $51.06
M6 Marine Safety Captain Annual $105,451 $118,633 $131,814 $144,996 $158,177 Monthly $8,788 $9,886 $10,985 $12,083 $13,181
Bi-weekly $4,394 $4,943 $5,492 $6,041 $6,591
Hourly $50.70 $57.04 $63.37 $69.71 $76.05
M6-A Fire Battalion Chief (2080 annual hours) Annual $109,028 $122,657 $136,285 $149,914 $163,543 Monthly $9,086 $10,221 $11,357 $12,493 $13,629
Bi-weekly $4,543 $5,111 $5,679 $6,246 $6,814
Hourly $52.42 $58.97 $65.52 $72.07 $78.63
M7 Deputy Fire Chief Annual $111,535 $128,265 $144,996 $161,726 $178,456 Monthly $9,295 $10,689 $12,083 $13,477 $14,871
Bi-weekly $4,647 $5,344 $6,041 $6,739 $7,436
Hourly $53.62 $61.67 $69.71 $77.75 $85.80
M8 Annual $122,689 $141,092 $159,495 $177,899 $196,302
Monthly $10,224 $11,758 $13,291 $14,825 $16,358
Bi-weekly $5,112 $5,879 $6,646 $7,412 $8,179
Hourly $58.98 $67.83 $76.68 $85.53 $94.38
Administrative Services Director/Assistant City
Manager
City Clerk
City Engineer/Public Works Director
Community Development Director
Fire Chief
Finance Director/City Treasurer
Human Resources Director
Information Technology Director
Midpoint 75th
Percentile Pay Greade Job Classifications Frequency Minimum Maximum 25th Percentile

CITY OF SOLANA BEACH
Approved 7/14/2021
Updated 3/9/2022

EXHIBIT B

PART-TIME/TEMPORARY/SEASONAL EMPLOYEES
SALARY SCHEDULE 6
Updated March 9, 2022
July 14, 2021
Job Classification Step A Step B Step C Step D Step E
Lifeguard Intern
Junior Lifeguard Intern
Junior Lifeguard Instroctor I (non-lifeguard)
Lifeguard
Junior LG Instructor II
Management Intern
Temporary Administrative Assistant
Parking Enforcement Officer
Recreation Leader I
Lifeguard + EMT
Junior LG Instructor II + EMT
Recreation Leader II
PTS 75 Temporary Maintenance Worker I $21.04 $22.09 $23.20 $24.35 $25.57 PTS 76 Temporary Firefighter/Paramedic $21.25 $22.31 $23.43 $24.60 $25.83 Temporary Planning Technician
Temporary Engineering Technician
Temporary Administrative Technician
Jr. Lifeguard Administrative Technician
Recreation Leader III
Senior Lifeguard
PTS 86 Temporary Code Compliance Officer Assistant $23.47 $24.65 $25.88 $27.17 $28.53 PTS 88 Senior Lifeguard + EMT $23.94 $25.14 $26.40 $27.72 $29.10 PTS 102 Temporary Management Assistant $27.52 $28.90 $30.34 $31.86 $33.45 PTS 123 Temporary Fire Prevention Technician $33.92 $35.62 $37.40 $39.27 $41.23 Pay Grade
PTS 41 $15.00 $15.75 $16.54 $17.36 $18.23
$18.67 $19.60 $20.58 $21.61 $22.69
$20.56 $21.59
$24.84 $26.09
PTS 58 $17.76 $18.65 $19.59
PTS 63
PTS 77 $21.46 $22.53 $23.66
$26.11 $27.42
PTS 83 $22.78 $23.92 $25.12 $26.37 $27.69
PTS 82 $22.56 $23.68 $24.87

CITY OF SOLANA BEACH
Updated 3/9/2022
Updated 1/1/2022
Approved 7/14/2021

EXHIBIT C

CITY OF SOLANA BEACH

INFORMATION TECHNOLOGY DIRECTOR

AT-WILL
Class specifications are intended to present a descriptive list of the range of duties performed by employees in the class.

Specifications are not intended to reflect all duties performed within the job.

DEFINITION
Under general direction, plans, organizes, oversees, coordinates, and manages Information Systems programs and activities; provides management, direction and leadership in information and telecommunications systems applications, development, and operations; provides advice and counsel to management and user departments concerning the application of information systemsDevelops budgets and manages contracts for technology products and services. Supervises computer network, internal and external software application, and technology support staff and consultants.

Receives general direction from the City Manager, or designee. Exercise direct and general supervision over Information Technology staff.

CLASS CHARACTERISTICS
This is an executive management position, which reports to the City Manager or designee. The Information Technology Director manages all Information Technology activities, including the development of city wide user requirements and network infrastructure, telecommunications, database administration, business systems application development, maintenance of file servers, and oversees day-to-day activities. The Director is responsible for providing professional-level support to the City Manager in a variety of areas. Responsibilities include performing diverse, specialized, and complex work involving significant accountability and decisionmaking responsibility. Successful performance of the work requires a highly skilled Information Technology professional with the ability to manage and coordinate departmental work. This class has overall responsibility for all functions of the Department and for developing, implementing, and interpreting policy. The Information Technology Director is a part of the Executive Management Team and is a FLSA exempt, at-will position.

ESSENTIAL JOB FUNCTIONS
The duties and responsibilities listed below are intended only as examples of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related to or a logical assignment to the class.
• Plan, organize and direct the city’s Information Systems programs and activities, including but not limited to: information processing, and telecommunications.
• Provide guidance and counsel to management in the examination and definition of objectives for existing and proposed systems and in the design of improved information and telecommunication systems. • Analyze and define city's information and telecommunication systems requirements. • Develop and recommend department policies and procedures and direct their implementation upon approval.

City of Solana Beach
Information Technology Director
Adopted: March 9, 2022 Page 2 of 6
• Recommend the location, type, size and equipment for information and telecommunications systems installations.
• Direct the preparation and administration of the recommended departmental work program and annual budget. Recommend department staffing consistent with the workload. • Manage employees through other supervisors; set goals and objectives; select, train, motivate staff; assess performance and make salary recommendations.
• Direct the preparation and implementation of policies, procedures and standards relating to information and telecommunication systems.
• Maintain professional contacts with other organizations, research bodies and equipment manufacturers concerning information systems applications and equipment. • Direct the continuing review of present systems and methods and the formulation of new and revised systems, examining techniques in use and determining appropriate changes to effect improvements, reduce costs and enhance efficiency on an organization-wide basis. • Plans, manages, and oversees the daily functions, operations, and activities of the Information Technology Division, including the development of city wide user requirements and network infrastructure, telecommunications, database administration, business systems application development, maintenance of file servers and personal computers, and the administration and operation of other related systems and equipment.
• Manages citywide or departmental technology projects, hardware infrastructure and business applications. Researches, selects, implements, trains and deploys technology projects. • Participates in the development and implementation of goals, objectives, policies, and priorities for the Information Technology Department; recommends within departmental policy, appropriate service and staffing levels; recommends and administers policies and procedures. • Prepares and monitors technology budget including operating budget, technology capital replacement budget, and other accounts related to technology in other Departments and Divisions. Manages contracts with hardware and software vendors and consultants. • Develops and standardizes procedures and methods to improve and continuously monitor the efficiency and effectiveness of assigned programs, service delivery methods, and procedures; assesses and monitors workload, administrative and support systems, and internal reporting relationships; identifies opportunities for improvement and recommends to the City Manager and Assistant City Manager. • Directs and coordinates the work plan for the City; meets with staff to identify and resolve problems; assigns work activities, projects and programs; monitors work flow; reviews and evaluates work products, methods and procedures.
• Participates in the selection of, trains, motivates, and evaluates assigned staff; provides or coordinates staff training; works with employees on performance issues in coordination with Human Resources; implements discipline in consultation with the City Manager and Assistant City Manager. • Leads and oversees development, modification, and implementation of the City's Information Technology processes and procedures; investigates, evaluates and oversees administration of new applications and hardware/software upgrades related to all computer technology, City phone systems, the internet and intranet.
• Maintains and updates the City’s website, and supports GIS Technology functions. • Manages and oversees the operating system for the file servers and arranges for installation, upgrades, and troubleshooting of operating system programming problems. • Provides customer support, including application, computer, phone support and troubleshooting.

City of Solana Beach
Information Technology Director
Adopted: March 9, 2022 Page 3 of 6
• Monitors the development and implementation of new network and computerized systems and procedures; works with end users to develop specifications; decides or recommends feasibility of development projects; and evaluates capacity to implement in-house or outsource. • Manages technology assets, including development of replacement schedules, inventory and disposal. • Provides consulting advice and technical expertise to City departments regarding hardware/software needs analysis, evaluation of proposed solutions, systems integration, and solutions implementations; identifies and recommends appropriate standards or specialized hardware and/or software to meet the City's needs.
• Ensures safety and security of information system assets and protects systems from inappropriate access or destruction; monitors network security and performance; identifies unauthorized access and potential security risks; participates in projects to enhance network security operations. • Develops and reviews staff reports related to assigned activities and services; presents reports to various commissions, committees, and boards as needed.
• Provides highly complex staff assistance to the City Manager or Assistant City Manager; prepares and presents staff reports and other necessary correspondence. • Conducts a variety of organizational studies, investigations, and operational studies; recommends modifications to assigned programs, policies, and procedures, as appropriate. • Attends and participates in professional group meetings; stays abreast of new trends and innovations in the field of public agency information technology systems; researches emerging products and enhancements and their applicability to City needs.
• Receives, investigates, and responds to difficult and sensitive problems and complaints in a professional manner; identifies and reports findings and takes necessary corrective action. • Maintains attendance and punctuality that is observant of scheduled hours on a regular basis. • Remains available 24/7 for emergency incidents and also in non-traditional work hours for presence at various special events and meetings.
• Regulates compliance of cable and telecommunication franchises. • Performs other duties as assigned.

QUALIFICATIONS GUIDELINES
Experience:

Eight (8) years of responsible experience in information technology systems management, network administration, or database management, with five (5) years of supervisory, management, and/or administrative experience.

Education:

A Bachelor's Degree or equivalent education (i.e., minimum completed California units = 120 semester/180 quarter) from an accredited educational institution with major coursework in business or public administration, computer science, or a related field. A master’s degree is highly desirable.

CompTIA A+ Certification and/or Microsoft Certification highly desirable (A+, Network+, Server+, MCSE,

MCSA, MCDST)
City of Solana Beach
Information Technology Director
Adopted: March 9, 2022 Page 4 of 6

KNOWLEDGE AND ABILITIES
Knowledge of:
• Administrative principles and practices, including goal setting, program development, implementation, and evaluation and project management.
• Hardware and software characteristics of various computer systems and a general understanding of system features and their integration capabilities.
• Systems design and development processes, including needs analysis, feasibility studies, software design, programming, beta testing, installation, evaluation, and operational management. • Principles and practices of budget administration; contract administration and evaluation. • Principles and practices of employee supervision, including work planning, assignment, review and evaluation and the training of staff in work procedures. • Applicable Federal, State, and local laws, codes and regulations concerning the operation of the IT department.
• The latest telecommunications legislation and laws pertaining to cable franchises, public, government and educations access channels, including basic knowledge of franchise compliance and FCC and CPUC rules and regulations.
• Organization and management practices as applied to the development, analysis, and evaluation of programs and operational needs of the assigned divisions. • Emerging trends and developments, current literature, and sources of information in the field of communications and information technology, including use of new technologies. • Recordkeeping principles and procedures.
• Technology security principles and best practices.
• IT trends and best practices.
• Techniques for effectively representing the City in contacts with governmental agencies, community groups, and various business, professional, educational, regulatory, and legislative organizations. • Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors and City staff.

Ability to:
• Recommend and implement goals, objectives, and practices for providing effective and efficient services.
• Manage and monitor complex projects, on-time and within budget. • Prepare and monitor project budgets.
• Plan, organize, schedule, assign, review, and evaluate the work of staff. • Evaluate and develop improvements in operations, procedures, policies, or methods. • Research, analyze, and evaluate new service delivery methods, procedures, and techniques. • Prepare clear and concise reports, correspondence, policies, procedures, and other written materials.
• Analyze, interpret, summarize and present administrative and technical information and data in an effective manner.
• Interpret, explain, and ensure compliance with City policies and procedures, complex laws, codes, regulations, and ordinances.

City of Solana Beach
Information Technology Director
Adopted: March 9, 2022 Page 5 of 6
• Conduct complex research projects, evaluate alternatives, make sound recommendations, and prepare effective technical staff reports.
• Be available 24/7 for emergency incidents and also in non-traditional work hours for presence at various special events and meetings.
• Effectively represent the department and the City in meetings with governmental agencies, community groups, and various businesses, professional, and regulatory organizations, and in meetings with individuals.
• Establish and maintain a variety of filing, recordkeeping, and tracking systems. • Organize and prioritize a variety of projects and multiple tasks in an effective and timely manner; organize own work, set priorities, and meet critical time deadlines. • Operate modern office equipment including computer equipment and specialized software applications programs.
• Use English effectively to communicate in person, over the telephone, and in writing. • Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines.
• Establish, maintain, and foster positive and harmonious working relationships with those contacted in the course of work.

Special Requirements:
• The applicant selected will be subject to a criminal history investigation through the California Department of Justice (DOJ) and a thorough background check. A waiver for reference and background information must be completed.
• Possession of a valid Class “C” California driver’s license with a satisfactory driving record. • City of Solana Beach employees are designated Disaster Service Workers through state law (California Government Code Section 3100-3109). Employment with the City requires the affirmation of a loyalty oath to this effect. Employees are required to complete all Disaster Service Worker-related training as assigned, and to return to work as ordered in the event of an emergency.

City of Solana Beach
Information Technology Director
Adopted: March 9, 2022 Page 6 of 6

PHYSICAL AND MENTAL DEMANDS/WORKING CONDITIONS
The physical and mental demands herein are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform these essential job functions.
• Environment: Standard office environment. Occasional exposure to temperature swings from indoor to outdoor temperatures; exposure to dust from atmosphere and volumes of paper; infrequent exposure to extreme heat and humidity in unairconditioned facilities; extreme noise working at offsite locations; mechanical and electrical hazards of equipment; fumes and odors of burned wiring.

Work environment is an 80-hour biweekly work period, with unscheduled breaks. Duties may require working varying hours and days. Work is performed in City Hall and at a number of off-site locations; some work may be performed by telecommuting. Work characteristics are both formal and informal; both autonomous and team-oriented; having both routine and variable tasks; with variable pace and pressure.
• Physical: Primary functions require sufficient physical ability to work in an office setting and operate office equipment. Continuous fine finger dexterity to manipulate small tools and equipment; Frequent walking, standing, sitting, side-to-side turning of neck; firm grasp to lift and move equipment; Occasional bending and stooping, squatting, reaching at and above shoulder height, pushing/pulling, twisting at waist, upward and downward flexion of neck; lifting of objects weighing up to 25 lbs. from below waist to above shoulder level and transporting distances up to one city block; Infrequent kneeling; lifting of objects weighing 2650 lbs. from below waist to chest level with or without assistance and transporting distances up to 30 feet; lifting of objects weighing 51-75 lbs. from below waist to waist level with or without assistance and transporting distances up to 10 feet. • Vision: See in the normal visual range with or without correction; vision sufficient to read computer screens and printed documents and to operate equipment. • Hearing: Hear in the normal audio range with or without correction. • Environment: Normal office setting with some travel to attend meetings. Incumbents may be required to work at both indoor and outdoor environments; individuals may be exposed to noise, dust and inclement weather conditions.
• Other factors: Incumbents may be required to work extended hours including evenings and weekends. Incumbents may be required to travel outside City boundaries to attend meetings and to use a personal vehicle in the course of employment.

CITY COUNCIL ACTION:
______________________________________________________________________ ______________________________________________________________________ AGENDA ITEM # C.3.

STAFF REPORT

CITY OF SOLANA BEACH
TO: Honorable Mayor and City Councilmembers
FROM: Gregory Wade, City Manager
MEETING DATE: March 9, 2022
ORIGINATING DEPT: Finance
SUBJECT: Quarterly Investment Report
BACKGROUND:

California Government Code Section 53600 requires timely reporting of local agency investment transactions and portfolio to the agency’s legislative body.

This item is before Council to receive a presentation and to accept and file the Cash and Investment Report for the quarter ended December 31, 2021.

DISCUSSION:

The investment objectives for the City of Solana Beach are 1) to provide safety to ensure the preservation of capital in the overall portfolio, 2) to provide sufficient liquidity for cash needs and 3) to generate a market rate of return consistent with the Investment Policy.

The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark yield. In order to achieve this objective, the portfolio invests in high-quality fixed income securities that comply with the Investment Policy and all applicable regulations governing the funds.

The attached Quarterly Cash and Investment Report ensures that the City complies with Section 53600. The City’s investment portfolio complies with the City’s Investment Policy that is approved annually by the City Council. The majority of City funds are invested in Chandler Asset Management (Chandler), Public Agency Retirement Services (PARS), and Local Agency Investment Fund (LAIF).

Staff from Chandler, PARS, and Highmark Capital, the manager of the City’s PARS Trust Fund, will be at the meeting on March 9th to provide an economic update and overview of the performance of the City’s assets and the PARS Trust Fund.

March 9, 2022
Quarterly Investment Report

Page 2 of 2 ends

CEQA COMPLIANCE STATEMENT:

Not a project as defined by CEQA
FISCAL IMPACT:

None
WORK PLAN:

N/A
OPTIONS:
• Receive reports
• Provide direction
DEPARTMENT RECOMMENDATION:

Staff recommends that the City Council accepts and files the attached Cash and Investment Report for the quarter ended December 31, 2021.

CITY MANAGER’S RECOMMENDATION:

Approve Department Recommendation
_________________________
Gregory Wade, City Manager
Attachments:

1. Cash and Investment Report – December 31, 2021

2. Chandler Asset Quarterly Investment Report- December 31, 2021

3. PARS Trust Monthly Statement – December 31, 2021
Quarter Fiscal Year
Current Cost Market Current Interest to Date
Stated Percent of Value Value Quarter Earned Interest Earned Custodian Maturity Yield Portfolio (Rounded) (Rounded) Yield (Rounded) (Rounded) General Checking Account Union Bank of California On Demand (1) N/A 17.90% $ 8,201,527 $ 8,201,527 N/A N/A N/A Payroll Account Union Bank of California On Demand (1) N/A 0.85% 389,125 389,125 N/A N/A N/A Worker's Comp - Checking Union Bank of California On Demand (1) N/A 0.05% 23,740 23,740 N/A N/A N/A Successor Agency - Checking Union Bank of California On Demand (1) N/A 0.52% 237,746 237,746 N/A N/A N/A SEA Lockbox River City Bank On Demand (1) N/A 0.30% 137,548 137,548 N/A N/A N/A SEA Reserve River City Bank On Demand (1) N/A 0.78% 358,495 358,495 0.15% 31 62 Local Agency Investment Fund State of CA On Demand (1) N/A 8.93% 4,093,301 4,093,301 (2) 0.23% 2,356 12,329 Chandler Asset Management (CMA) US Bank 1 to 3 years N/A 60.37% 27,665,797 27,689,508 (5) 0.70% 89,300 (6)(7) 238,358 (6)(7) Investment Portfolio
Public Agency Retirement Services (PARS) US Bank Varied N/A 10.30% 4,722,771 5,213,814 (3) 3.04% 191,565 (7) 232,003 (7) Wells Fargo Advantage Money Market Wells Fargo Bank Varied N/A 0.00% 13 13 (4) N/A - - RDA Refunding Bond Series 2017 (Cash with Fiscal Agent) Total Cash and Investments 100.00% $ 45,830,063 $ 46,344,817 $ 283,252 $ 482,751 (1) Funds may be withdrawn with (2) Source: Monthly Pooled Money Investment Account (3) Source: US Bank Asset Summary (5) Source: CMA US Bank statements (7) Includes realized 24 hours notice Market Valuation as reported by LAIF (4) Source: fiscal agent month-end statements. (6) Includes accrued interest investment gains/losses (if available) of current quarter
I certify that this report accurately reflects all pooled investments and is in compliance with Government Code Section 53640-53646 as amended January 1, 1996, as well as the investment policy of the City of Solana Beach as approved annually by the City Council.

Furthermore, I certify that sufficient investment liquidity and anticipated revenues are available to meet the City's budgeted expenditure requirements for the next six months.

Date:

Approved by: Prepared by:

Ryan Smith Catherine Wong
Finance Director/Treasurer Senior Accountant
1/31/2022
City of Solana Beach
Investment
Type of
Cash and Investment Report
December 31, 2021
CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com

INVESTMENT REPORT
Period Ending December 31, 2021
City of Solana Beach
I I-;.,& CHANDLER ~ ,-- ASSET MANAGEMENT
SECTION 1 Economic Update
SECTION 2 Account Profile
Table of Contents As of December 31, 2021
1 I
Economic Update Section 1 | | SECTION
2 \\'.)
Economic Update



We believe economic growth is likely to moderate but remain above-trend in 2022, as US fiscal support begins to wane, and the Federal Reserve becomes less accommodative. We expect continued improvement in the labor market, particularly an increase in the participation rate, will help drive economic growth this year as the health situation improves. Consumer spending, the largest component of US GDP, should also remain solid, supported by healthy consumer balance sheets and an improving labor market, in our view. We anticipate inventory rebuilding will likely be a significant driver of US GDP growth in the second half of the year as well. Our outlook is predicated on an improving global health backdrop, though risks to the downside remain. Over the near-term, we believe the omicron variant will hinder economic growth and we expect financial market volatility will be elevated. Inflation readings continue to run hot, but we believe inflation may be at or near a peak and pricing pressures are likely to abate as we move through the year.

The Federal Open Market Committee (FOMC) kept the fed funds target rate unchanged in December, in a range of 0.0%-

0.25%, but announced plans to accelerate the pace of their tapering process. The Fed will reduce the magnitude of their monthly asset purchases by $30 billion in January, doubling the pace of the monthly reduction in asset purchases that began in November. Should the Fed continue to reduce their monthly asset purchases at the new pace, their bond-buying program would end this spring (late-March or mid-April). The FOMC’s updated Summary of Economic Projections indicates that policymakers may be prepared to hike the fed funds rate three times in 2022 (based on the median estimate), up from the previous projection of just one 25 basis point hike. The Fed’s updated projections suggest that these hikes would be amid a backdrop of strong economic growth. With inflation now more elevated and prolonged than originally anticipated, we believe the Fed’s decision to accelerate the tapering process is prudent. However, we do not believe that monetary policy is on a pre-set course and expect the Fed will adjust policy if necessary, depending on developments in the economy.

In December, the 2-year Treasury yield increased nearly 17 basis points to 0.73%, the 5-year Treasury yield increased ten basis points to 1.26%, and the 10-year Treasury yield increased about seven basis points to 1.51% in the month. So far in January, we have seen a relatively swift move upward in Treasury yields across the curve. 3 I
Source: US Department of Labor Source: US Department of Labor Employment
Job growth slowed in December, with US nonfarm payroll growth of just 199,000 in the month versus the consensus forecast of 450,000, but the unemployment rate still declined to 3.9%, the lowest level since February 2020. On a trailing 3-month and 6-month basis, payrolls increased an average of 365,000 and 508,000 per month, respectively, which still compares favorably to the average job gains in the five years leading up to the pandemic of about 196,000 per month. We believe a variety of factors are keeping some workers out of the labor force for now, which continues to hold back job growth despite strong demand from employers. The labor participation rate was unchanged in December at 61.9% and remains lower than the pre-pandemic level of 63.4%. The employment-population ratio increased to 59.5% in December form 59.3% in November, but also remains below the pre-pandemic level of 61.2%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons, declined to 7.3% in December from 7.7% in November (versus 7.0% in February 2020). Annualized average hourly earnings rose 0.6% month-over-month and were up 4.7% year-over-year in December versus

5.1% in November.
-22,000
-18,000
-14,000
-10,000
-6,000
-2,000
2,000
6,000
MOM Change In (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3 month average (000's)

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
4 I
A--~ -
;--......-__ -
"' I
.
. \ I
\ ~' .
-..~
- - - ~
- -
- ,--
---
,,
I \ ' ' -------=-
,:----i - \
' '
...
....

Source: US Department of Labor Source: US Department of Commerce Inflation
The Consumer Price Index (CPI) was up 7.0% year-over-year in December, versus up 6.8% year-over-year in November. Core CPI (CPI less food and energy) was up 5.5% year-over-year in December, versus up 4.9% in November. Pricing pressures were widespread in December, with notable gains for used cars and trucks, new vehicles, food, and rent. The Personal Consumption Expenditures (PCE) index was up 5.7% yearover-year in November, up from 5.1% in October. Core PCE was up 4.7% year-over-year in November, versus up 4.2% in October. Current inflation readings continue to run well above the Fed’s longer-run target of around 2.0%. While we believe year-over-year inflation may be at or near a peak, and pricing pressures are likely to abate as we move through the year, we expect inflationary pressures will remain elevated over the near-term.

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
YOY( %) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY( %) Change
5 I
On a year-over-year basis, retail sales were up 16.9% in December versus up 18.2% in November. On a month-over-month basis, retail sales were softer than expected in December, down 1.9% versus expectations of down 0.1%, following a modest gain of just 0.2% in November.

Excluding vehicles and gas, retail sales were down 2.5% month-over-month. In our view, the data suggests that consumers started shopping early in the holiday season and that high gas prices are likely taking some wallet share. We believe the surge in Omicron virus cases likely hindered Decembersales as well. We remain constructive on the outlook for consumer spending this year, but we believe the current surge in virus cases is likely to take a toll on January retail sales. Looking further ahead, we believe high levels of consumer savings along with improvement in the health situation and continued improvement in the labor market, should provide a healthy tailwind for consumer spending. The Consumer Confidence index increased to 115.8 in December from 111.9 in November. The improvement came despite the arrival of the omicron variant and still elevated inflation.

Source: US Department of Commerce Source: The Conference Board -30.0%
-20.0%
-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
Retail Sales YOY % Change
YOY (%) Change
80 90
100
110
120
130
140
Index Level
Consumer Confidence
Consumer
6 I
Source: US Department of Commerce Source: S&P
Housing
0 200
400
600
800
1000
1200
1400
1600
1800
2000
MOM Change (In Thousands of Units)
Housing Starts
Multi Family Housing Starts
Single Family Housing Starts

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

18.0%

21.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
YOY( %) Change
Total housing starts increased 1.4% in December to an annual pace of 1,702,000. Single-family starts declined 2.3% while multi-family starts increased 10.6%, month-over-month. On a year-over-year basis total housing starts were up 2.5% in December. According to the Case-Shiller 20- City home price index, home prices were up 18.4% year-over-year in October versus up 19.1% year-over-year in September, suggesting the acceleration in home prices is easing. However, tight supply will likely continue to support prices. 7 I
Source: US Department of Commerce Source: US Department of Commerce 12/20 3/21 6/21 9/21

2.3% 7.4% 7.9% 1.4%

4.0% -0.4% -0.7% 2.1%
-1.7% -1.6% -0.2% -1.3%
-0.2% 0.8% -0.4% -0.4%

0.1% 0.0% 0.0% 0.5%

4.5% 6.3% 6.7% 2.3%
Gross Private Domestic Investment
Personal Consumption Expenditures
Components of GDP
Federal Government Expenditures
State and Local (Consumption and Gross
Investment)
Net Exports and Imports
Total
-35.0%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Gross Domestic Product (GDP)
Real US gross domestic product (GDP) growth decelerated in the third quarter of 2021 amid widespread supply chain disruptions and a surge in the Covid Delta variant. However, third quarter growth was slightly better than previously estimated. According to the final estimate, third quarter GDP grew at an annualized rate of 2.3% in the third quarter, revised up from the second estimate of 2.1% and the advance estimate of

2.0%. This follows a much stronger pace of growth in the first half of 2021, with first and second quarter annualized GDP growth up 6.3% and

6.7%, respectively. The consensus estimate is 5.9% GDP growth in the fourth quarter, and 2.9% GDP growth in the current quarter. We anticipate the recent surge of omicron cases in the US will hamper current quarter economic growth. 8 I
_A. ,
~, -
u IJ IJ - - -~ I r I ~
11\ ,....- , If'
-
- -
-
Source: Bloomberg Source: Bloomberg

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%
US Treasury Yield Curve
Dec-21
Sep-21
Dec-20
Yield (%)
Bond Yields
At the end of December, the 2-year Treasury yield was about 61 basis points higher and the 10-Year Treasury yield was about 60 basis points higher, year-over-year. The spread between the 2-year Treasury yield and 10-year Treasury yield was 78 basis points at year-end compared to the average historical spread (since 2002) of about 135 basis points. 9 I
. ... . . ~
--- -----------------l.___-_____ _.
. . .. . · ---=-).-----=------- ,____ #--------.· ,.-•-- . ---- , .· ····· ,___ ···········
···································
.... •·
.... •· ······ .. .. ..
------1---=-,_ _______ ., ,.o...;_ .... __________ _
.... ········ .. .. · ...

Section 2| Account Profile Section 2 | | SECTION
10 \\'.)
Objectives
Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.

Investment Objectives
The investment objectives for the City of Solana Beach, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs, and a market rate of return consistent with the investment program.

Strategy
In order to achieve this objective, the portfolio invests in high-quality fixed income securities that comply with the investment policy and all regulations governing the funds.

As of December 31, 2021
11 I
Compliance As of December 31, 2021
Category Standard Comment
U.S. Treasuries No limitations; Full faith and credit of the U.S. are pledged for the payment of principal and interest Complies Federal Agencies
30% max per Agency/GSE issuer; 20% max callable agency securities; Federal agencies or U.S. government-sponsored enterprise obligations, participations, or other instruments, including those issued or fully guaranteed as to principal and interest by federal agencies or U.S. government sponsored enterprises.

Complies
Supranational Obligations
"AA" rating category or higher by a Nationally Recognized Statistical Rating Organization ("NRSRO"); 30% max; 10% max per issuer; USD denominated senior unsecured unsubordinated obligations; Issued or unconditionally guaranteed by International Bank for Reconstruction & Development (IBRD), International Finance Corporation (IFC), or Inter-American Development Bank (IADB) Complies
Municipal Securities (CA, Local Agency) "A" rating category or higher by a NRSRO; 30% max; 5% max per issuer; Include obligations of the City, State of California, and any local agency within the State of California Complies
Municipal Securities (CA, Other States)
"A" rating category or higher by a NRSRO; 30% max; 5% max per issuer; Bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state, or by a department, board, agency, or authority of any of the other 49 states, in addition to California.

Complies
Corporate Medium Term Notes "A" rating category or higher by a NRSRO; 30% max; 5% max per issuer; Issuer is a corporation organized and operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S. Complies Asset-Backed, Mortgage-Backed,
Mortgage Pass-Through Securities, and
Collateralized Mortgage Obligations
"AA" rating category or higher by a NRSRO; 20% max (combined ABS/MBS/CMO); 5% max per Asset-Backed or Commercial Mortgage security issuer; There is no issuer limitation on any Mortgage security where the issuer is the U.S. Treasury or a Federal City/GSE; Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations from issuers not defined in section 3 (US Treasuries) and 4 (Federal Agencies) of the Authorized Investments section of the policy Complies
Negotiable Certificates of Deposit (NCD)
The amount of NCD insured up to the FDIC limit does not require any credit ratings; Any amount above FDIC insured limit must be issued by institutions with "A-1" short-term debt rating or higher by a NRSRO; or "A" long-term rating category or higher by a NRSRO; 30% max (combined with CDARS); 5% max per issuer; Issued by a nationally or state-chartered bank, or a federal or state association, a state or federal credit union, or by a federally-licensed or state-licensed branch of a foreign bank.

Complies
Certificate of Deposit Placement Service
(CDARS) 30% max (combination of Certificates of Deposit, including CDARS) Complies FDIC Insured Time Deposits (Nonnegotiable CD/TD)Non-Negotiable Certificates of Deposit in state or federally chartered banks, savings and loans, or credit unions; The amount per institution is limited to maximum covered under FDIC; 20% max combined FDIC & Collateralized CD/TD Complies Collateralized Time Deposits (Nonnegotiable CD/TD)Non-Negotiable Certificates of Deposit in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law; 20% max combined FDIC & Collateralized CD/TD Complies Collateralized Bank Deposits City's deposits with financial institutions will be collateralized with pledged securities per California Government Code Complies Banker’s Acceptances "A-1" short-term debt rated or higher by a NRSRO; or "A" long-term debt rating category or higher by a NRSRO; 40% max; 5% max per issuer; 180 days max maturity Complies
Commercial Paper
25% max; 5% max per issuer; 270 days maturity; 10% max of the outstanding paper of any single issuer; Issued by an entity that meets all of the following conditions in either (a) or (b): a. Securities issued by corporations: (i) organized and operating within the U.S. with assets > $500 million; (ii) "A-1" rated or better by a NRSRO; (iii) "A" rating or better by a NRSRO, if issuer has other debt obligations. b. Securities issued by other entities: (i) organized within the U.S. as a special purpose corporation, trust, or limited liability company; (ii) must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond; (iii) rated "A-1" or better by a NRSRO
Complies
City of Solana Beach
Assets managed by Chandler Asset Management are in full compliance with state law and the City's investment policy. 12 I
Compliance As of December 31, 2021
Category Standard Comment
Money Market Mutual Funds
Registered with SEC under Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria: (i) Highest rating by two NRSROs; or (ii) Retained an investment adviser registered or exempt from SEC registration with > 5 years experience managing money market mutual funds with AUM >$500 million; (iii) 20% max per Money Market Mutual Fund; 20% max combined Money Market Mutual Funds and Mutual Funds
Complies
Mutual Funds
Invest in securities as authorized under CGC, Section 53601 (a) to (k) and (m) to (q) inclusive and meet either of the following criteria:
(i) Highest rating by two NRSROs; or (ii) Retained an investment adviser registered or exempt from SEC registration with > 5 years experience investing in securities authorized by CGC, Section 53601 and with AUM >$500 million; (iii) 10% max per Mutual Fund; 20% max combined Money Market Mutual Funds and Mutual Funds
Complies
Local Agency Investment Fund (LAIF) Maximum amount permitted by LAIF; Not used by investment adviser Complies Investment Trust of California
(CalTRUST)
Joint powers authority (JPA) organized and managed by the Investment Trust of California JPA for the benefit of local agencies, pursuant to CGC; Not used by investment adviser Complies
Repurchase Agreements 102% Collateralized; 1 year max maturity; Not used by investment adviser Complies Prohibited
Investments not specifically described in the policy; Futures and Options; Inverse floaters; Ranges notes, Mortgage-derived or Interest-only strips; Zero interest accrual securities, if held to maturity; Under a provision sunsetting January 1, 2026, securities backed by U.S.

Government that could result in a zero- or negative-interest accrual if held to maturity are permitted; Trading securities for the sole purpose of speculating on the future direction of interest rates; Purchasing or selling securities on margin; Reverse repurchase agreements; Securities lending or any other form of borrowing or leverage; Foreign currency denominated securities; Purchases of securities issued by fossil fuel companies that directly source the majority (more than 50%) of their revenue from oil, gas, and or coal production.

Complies
Credit Risk/ Downgrade
If securities owned by the City are downgraded to a level below the requirements of the policy, making the security ineligible for additional purchases, the following steps will be taken: -Any actions taken related to the downgrade by the investment manager will be promptly communicated to the Treasurer; -If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.

Complies
Duration typically plus or minus 20% of Benchmark Index Complies Max Per Issuer 5% max per issuer, except U.S. Government, its Agencies and GSEs, Supranationals, Money Market Mutual Funds, LAIF, other LGIP, or where otherwise specified in the investment policy Complies
Maximum Maturity 5 years, except as otherwise stated in the policy Complies City of Solana Beach
Assets managed by Chandler Asset Management are in full compliance with state law and the City's investment policy. 13 I
Portfolio Characteristics
City of Solana Beach
12/31/2021 9/30/2021
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 1.85 2.01 1.97
Average Modified Duration 1.82 1.85 1.78
Average Purchase Yield n/a 1.05% 1.18%
Average Market Yield 0.68% 0.70% 0.33%
Average Quality** AAA AA/Aa1 AA+/Aa1
Total Market Value 27,754,043 27,894,029
*ICE BofA 1-3 Yr US Treasury & Agency Index
**Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively.

As of December 31, 2021
14 I
City of Solana Beach
Sector Distribution
ABS

7.4%
Agency

35.9%
Corporate

18.3%
Money Market
Fund

0.1%
Supranational

2.2%
US Treasury

36.1%
December 31, 2021 September 30, 2021
ABS

6.7%
Agency

42.9%
Corporate

16.4%
Money Market
Fund

1.1%
Supranational

2.2%
US Treasury

30.8%
As of December 31, 2021
15 I
Duration Allocation As of December 31, 2021
City of Solana Beach
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ 12/31/21 0.6% 5.5% 13.8% 35.5% 37.9% 6.6% 0.0% 0.0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0 - 0.25 Years 0.25 - 0.5 Years 0.5 - 1 Years 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 5+ Years ABS
Agency
Corporate
Money Market Fund
Supranational
US Treasury
16 I
■
■
■
■
■
■
Portfolio Allocation & Duration Changes
City of Solana Beach
As of December 31, 2021
Benchmark: ICE BofA 1-3 Yr US Treasury & Agency Index
101.7%

97.6%
101.4% 100.3%

92.2%

99.4%

82.4%

94.9%

80.0%

85.0%

90.0%

95.0%
100.0%
105.0%
110.0%
3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 6/30/2021 9/30/2021 12/31/2021 Duration as a % of the Benchmark

1.1%

2.2%

6.7%

16.4%

42.9%

30.8%

0.1%

2.2%

7.4%

18.4%

35.9%

36.1%
Money Market
Fund
Supranational
ABS
Corporate
Agency
US Treasury
Portfolio Allocation
12/31/2021
9/30/2021
17 I
-
-
I
•

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ City of Solana Beach ICE BofA 1-3 Yr US Treasury & Agency Index Portfolio Compared to the Benchmark as of December 31, 2021 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ Portfolio 0.6% 5.5% 13.8% 35.5% 37.9% 6.6% 0.0% 0.0%
Benchmark* 0.1% 0.0% 2.7% 56.0% 41.1% 0.0% 0.0% 0.0%
*ICE BofA 1-3 Yr US Treasury & Agency Index
Duration Distribution
City of Solana Beach
As of December 31, 2021
18 I
■ ■
Issue Name Investment Type % Portfolio
Government of United States US Treasury 36.06%
Federal Farm Credit Bank Agency 11.43%
Federal Home Loan Bank Agency 8.79%
Federal Home Loan Mortgage Corp Agency 8.14%
Federal National Mortgage Association Agency 7.50%
Honda ABS ABS 1.88%
Toyota ABS ABS 1.68%
JP Morgan Chase & Co Corporate 1.66%
Inter-American Dev Bank Supranational 1.55%
United Parcel Service Corporate 1.45%
John Deere ABS ABS 1.43%
Deere & Company Corporate 1.30%
Bank of New York Corporate 1.30%
Berkshire Hathaway Corporate 1.28%
Amazon.com Inc Corporate 1.25%
Caterpillar Inc Corporate 1.21%
US Bancorp Corporate 1.13%
Charles Schwab Corp/The Corporate 1.08%
Bank of Montreal Chicago Corporate 1.07%
Apple Inc Corporate 0.95%
Royal Bank of Canada Corporate 0.93%
Bank of America Corp Corporate 0.91%
Toronto Dominion Holdings Corporate 0.89%
Paccar Financial Corporate 0.75%
Intl Bank Recon and Development Supranational 0.68%
GM Financial Automobile Leasing Trust ABS 0.68%
Toyota Motor Corp Corporate 0.55%
Nissan ABS ABS 0.52%
Mercedes-Benz Auto Lease Trust ABS 0.46%
United Health Group Inc Corporate 0.45%
BMW Vehicle Lease Trust ABS 0.30%
GM Financial Securitized Term Auto Trust ABS 0.25%
Hyundai Auot Receivables ABS 0.23%
Salesforce.com Inc Corporate 0.20%
First American Govt Oblig Fund Money Market Fund 0.07%
TOTAL 100.00%
Issuers
City of Solana Beach – Account #10471
As of December 31, 2021
19 I
AAA AA A <A NR
12/31/21 6.8% 75.4% 14.9% 0.0% 3.0%
09/30/21 7.1% 76.6% 13.3% 0.0% 2.9%
Source: S&P Ratings
December 31, 2021 vs. September 30, 2021

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%
AAA AA A <A NR
12/31/2021 9/30/2021
Quality Distribution
City of Solana Beach
As of December 31, 2021
20 I
■ ■
-1.00%
-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%
12 months 2 years 3 years 5 years 10 years Since Inception City of Solana Beach ICE BofA 1-3 Yr US Treasury & Agency Index Total Rate of Return Annualized Since Inception 03/31/2016 Annualized
TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception
City of Solana Beach -0.49% -0.46% 1.33% 2.17% 1.83% N/A 1.63% ICE BofA 1-3 Yr US Treasury & Agency Index -0.53% -0.55% 1.25% 2.01% 1.61% N/A 1.40% Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.

Investment Performance
City of Solana Beach
As of December 31, 2021
21 I
■ ■
Investment Comparison
City of Solana Beach
As of December 31, 2021
LAIF EARNINGS ESTIMATE* GROSS INCOME EARNED

CHANDLER-MANAGED PORTFOLIO

INCOME EARNED CHANDLER-MANAGED
PORTFOLIO**
Apr 2016 - Dec 2016 $113,770 $185,849 $169,455
2017 $327,563 $439,162 $410,891
2018 $628,152 $553,633 $524,542
2019 $716,012 $600,606 $573,809
2020 $339,385 $513,751 $488,476
Jan 2021 $10,665 $36,364 $34,336
Feb 2021 $8,559 $34,489 $32,461
Mar 2021 $8,305 $34,032 $32,005
Apr 2021 $7,597 $32,984 $30,957
May 2021 $7,333 $31,866 $29,838
Jun 2021 $5,918 $30,107 $28,050
Jul 2021 $5,286 $30,637 $28,551
Aug 2021 $5,311 $29,064 $26,977
Sep 2021 $4,838 $27,347 $25,261
Oct 2021 $4,872 $26,333 $24,250
Nov 2021 $4,732 $24,374 $22,294
Dec 2021 $5,056 $23,922 $21,844
Total: $2,203,354 $2,654,520 $2,503,997
*LAIF earnings estimate calculated using daily yield
**Income earned net of Chandler fees
22 I
Growth of a Dollar
City of Solana Beach
As of December 31, 2021
As of 12/31/2021 Dollar Value Return
City of Solana Beach Total Return $1,097,450 1.63%
LAIF $1,072,747 1.23%
Historical Return of $1 Million Invested on March 31,2016 23 I
$1,120,000
- City of Solana Beach Total Return
$1,100,000 - LAIF
$1,080,000
$1,060,000
$1,040,000
$1,020,000
$1,000,000
Important Disclosures
2022 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.

Information contained herein is confidential. Prices are provided by IDC, an independent pricing source. In the event IDC does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.

Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.

Source ice Data Indices, LLC ("ICE"), used with permission. ICE permits use of the ICE indices and related data on an "as is" basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an "as is" basis and licensee's use it at licensee's own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.

This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.

Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.

Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.

Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively.

As of December 31, 2021
24 I
Benchmark Disclosures
ICE BofA 1-3 Yr US Treasury & Agency Index
The ICE BofA 1-3 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies.

As of December 31, 2021
25 I
Plan Summary
Beginning Plan Value as of
12/01/2021 $4,507,622.49
Change in Plan Value $706,191.75
Ending Plan Value as of 12/31/2021 $5,213,814.24
Activity Summary by Source
Balance on Balance on
Source 12/01/2021 Contributions Earnings Expenses Distributions Transfers 12/31/2021 OPEB $1,257,398.02 $138,000.00 $23,641.34 $(622.36) $0.00 $0.00 $1,418,417.00 PENSION $3,250,224.47 $485,075.00 $61,715.71 $(1,617.94) $0.00 $0.00 $3,795,397.24 Totals $4,507,622.49 $623,075.00 $85,357.05 $(2,240.30) $0.00 $0.00 $5,213,814.24 Transactions for the Period
Source Date Description Amount
OPEB 12/23/2021 AGENCY CONTRIBUTIONS $138,000.00
OPEB 12/31/2021 ACCOUNT GAINS/(LOSSES) $23,641.34
OPEB 12/31/2021 ASSET MGMT FEES $(360.40)
OPEB 12/31/2021 TRUST ADMINISTRATOR FEES $(261.96)
PENSION 12/23/2021 AGENCY CONTRIBUTIONS $485,075.00
PENSION 12/31/2021 ACCOUNT GAINS/(LOSSES) $61,715.71
PENSION 12/31/2021 ASSET MGMT FEES $(940.81)
PENSION 12/31/2021 TRUST ADMINISTRATOR FEES $(677.13)
Investment Selection
Source Selected Investment
OPEB HighMark PLUS Moderate
PENSION HighMark PLUS Moderate
Investment Objective
Selected
Investment Description
HighMark PLUS
Moderate
The dual goals of the Moderate Strategy are growth of principal and income. It is expected that dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important.

The portfolio will be allocated between equity and fixed income investments.

Ryan Smith CITY OF SOLANA BEACH
City of Solana Beach PARS PAPEBT
Monthly Account Report for the Period
12/01/2021 to 12/31/2021
4350 Von Karman Ave., Ste. 100, Newport Beach, CA 92660-2043 phone 800.540.6369 fax 949.250.1250 www.pars.org PUBLIC Page 1 of 2
AGENcy

RETIREMENT

SERVICES PARS
TRUSTED SOLUTIONS. LASTING RESULTS.

Investment Performance
Annualized Return Inception
Source 1-Month 3-Month 1-Year 3-Years 5-Years 10-Years Date OPEB 1.83% 3.04% 9.10% 12.71% 8.95% - 03/01/2016
PENSION 1.83% 3.04% 9.10% 12.73% 8.99% - 03/01/2016
Information as provided by US Bank, Trustee for PARS. Investments are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal. Past performance does not guarantee future results. Account balances are inclusive of Trust Administration, Trustee and Investment Management fees if applicable. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Annualized Return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return. Information is deemed reliable but may be subject to change. The plan's Rate of Return may differ from the rate of return in the above linked document. Reasons for the difference may include the timing of transactions into and out of the plan, the duration of time the plan's funds reside in the sweep account and differences in the methodology used to calculate performance.

RETIREMENT

SERVICES PARS
TRUSTED SOLUTIONS. LASTING RESULTS.

PARS DIVERSIFIED PORTFOLIOS

MODERATE

INVESTMENT OBJECTIVE

ANNUAL RETURNS
ASSET ALLOCATION — MODERATE PORTFOLIO
Comprehensive Investment Solution
HighMark® Capital Management, Inc.’s (HighMark)
diversified investment portfolios are designed to
balance return expectations with risk tolerance.

Key features include: sophisticated asset allocation
and optimization techniques, four layers of
diversification (asset class, style, manager, and
security), access to rigorously screened, top tier
money managers, flexible investment options, and
experienced investment management.

Rigorous Manager Due Diligence
Our manager review committee utilizes a rigorous
screening process that searches for investment
managers and styles that have not only produced
above-average returns within acceptable risk
parameters, but have the resources and commitment
to continue to deliver these results. We have set high
standards for our investment managers and funds.

This is a highly specialized, time consuming
approach dedicated to one goal: competitive and
consistent performance.

Flexible Investment Options
In order to meet the unique needs of our clients,
we offer access to flexible implementation strategies:

HighMark Plus utilizes actively managed mutual
funds while Index Plus utilizes index-based
securities, including exchange-traded funds. Both
investment options leverage HighMark’s active asset
allocation approach.

Risk Management
The portfolio is constructed to control risk through
four layers of diversification – asset classes (cash,
fixed income, equity), investment styles (large cap,
small cap, international, value, growth), managers
and securities. Disciplined mutual fund selection and
monitoring process helps to drive return potential
while reducing portfolio risk.

WHY THE PARS DIVERSIFIED
MODERATE PORTFOLIO?
Q4 2021
* Returns less than one year are not annualized. **Breakdown for Blended Benchmark: From 10/1/2012 – Present: 26.5% S&P500, 5% Russell Mid Cap, 7.5% Russell 2000, 3.25% MSCI EM (net), 6% MSCI EAFE (net), 33.50% Bloomberg US Agg, 10% ICE BofA 1-3 Yr US Corp/Gov’t, 1.50% ICE BofA US High Yield Master II, 1.75% Wilshire REIT, and 5% FTSE 1 Mth US T-Bill. From 4/1/2007 – 9/30/2012: the blended benchmark was 43% S&P 500; 2% Russell 2000, 5% MSCI EAFE (net), 15% ICE BofA 1-3 Year Corp./Govt, 30% Bloomberg US Agg, 5% FTSE 1 Mth US T-Bill. Prior to April 2007: the blended benchmark was 50% S&P 500, 15% ICE BofA 1-3Yr Corp/Gov, 30% Bloomberg US Agg, and 5% FTSE 1 Mth US T-Bill.

To provide current income and
moderate capital appreciation.

It is expected that dividend and
interest income will comprise a
significant portion of total return,
although growth through capital
appreciation is equally important.

Strategic Range Policy Tactical
Equity 40 - 60% 50% 53%
Fixed Income 40 - 60% 45% 46%
Cash 0 - 20% 5% 1%
ANNUALIZED TOTAL RETURNS (Gross of Investment Management Fees, but Net of Embedded Fund Fees)
HighMark Plus Composite (Active)
Current Quarter* 3.13%
Blended Benchmark*,** 3.75%
Year To Date* 9.31%
Blended Benchmark*,** 10.20%
1 Year 9.31%
Blended Benchmark** 10.20%
3 Year 13.26%
Blended Benchmark** 13.25%
5 Year 9.56%
Blended Benchmark** 9.40%
10 Year 8.39%
Blended Benchmark** 8.40%
Index Plus Composite (Passive)
Current Quarter* 3.76%
Blended Benchmark*,** 3.75%
Year To Date* 10.18%
Blended Benchmark*,** 10.20%
1 Year 10.18%
Blended Benchmark** 10.20%
3 Year 12.93%
Blended Benchmark** 13.25%
5 Year 9.05%
Blended Benchmark** 9.40%
10 Year 8.08%
Blended Benchmark** 8.40%

PORTFOLIO FACTS
HighMark Plus (Active)
Composite Inception Date 10/2004
No of Holdings in Portfolio 20
Index Plus (Passive)
Composite Inception Date 05/2006
No of Holdings in Portfolio 13
Efficient Frontier
Risk (Standard Deviation)
Reward (Rate of Return)
Conservative
Moderately Conservative
Moderate
Capital Appreciation
Balanced
(Gross of Investment Management Fees, but Net of Embedded Fund Fees)
HighMark Plus Composite (Active)
2008 -22.88%
2009 21.47%
2010 12.42%
2011 0.55%
2012 12.25%
2013 13.06%
2014 4.84%
2015 0.14%
2016 6.45%
2017 13.19%
2018 -4.03%
2019 17.71%
2020 12.92%
2021 9.31%
Index Plus Composite (Passive)
2008 -18.14%
2009 16.05%
2010 11.77%
2011 2.29%
2012 10.91%
2013 12.79%
2014 5.72%
2015 -0.52%
2016 7.23%
2017 11.59%
2018 -4.03%
2019 17.52%
2020 11.23%
2021 10.18%
_jHIGHMARK®

CAPITAL MANAGEMENT

HIGHMARK CAPITAL MANAGEMENT
350 California Street
Suite 1600
San Francisco, CA 94104
800-582-4734

ABOUT THE ADVISER
HighMark® Capital Management, Inc. (HighMark) has
over 100 years (including predecessor organizations) of institutional money management experience with $10.1
billion in assets under management and $10.1 billion in assets under advisement*. HighMark has a long term
disciplined approach to money management and
currently manages assets for a wide array of clients.

ABOUT THE PORTFOLIO MANAGEMENT TEAM
Andrew Brown, CFA®
Senior Portfolio Manager
Investment Experience: since 1994
HighMark Tenure: since 1997
Education: MBA, University of Southern California;
BA, University of Southern California
Salvatore “Tory” Milazzo III, CFA®
Senior Portfolio Manager
Investment Experience: since 2004
HighMark Tenure: since 2014
Education: BA, Colgate University
J. Keith Stribling, CFA®
Senior Portfolio Manager
Investment Experience: since 1985
HighMark Tenure: since 1995
Education: BA, Stetson University
Christiane Tsuda
Senior Portfolio Manager
Investment Experience: since 1987
HighMark Tenure: since 2010
Education: BA, International Christian University, Tokyo Anne Wimmer, CFA®
Senior Portfolio Manager
Investment Experience: since 1987
HighMark Tenure: since 2007
Education: BA, University of California, Santa Barbara
Randy Yurchak, CFA®
Senior Portfolio Manager
Investment Experience: since 2002
HighMark Tenure: since 2017
Education: MBA, Arizona State University;
BS, University of Washington
Asset Allocation Committee
Number of Members: 17
Average Years of Experience: 26
Average Tenure (Years): 14
Manager Review Group
Number of Members: 8
Average Years of Experience: 20
Average Tenure (Years): 9
*Assets under management (“AUM”) include assets for which HighMark provides continuous and regular supervisory and management services. Assets under advisement (“AUA”)
include assets for which HighMark provides certain investment advisory services (including, but not limited to, investment research and strategies) for client assets of its parent company, MUFG Union Bank, N.A.

The performance records shown represent size-weighted composites of tax exempt accounts that meet the following criteria: Accounts are managed by HighMark with full investment authority according to the PARS Moderate active and passive objectives.

The adviser to the PARS portfolios is US Bank, and HighMark serves as sub-adviser to US Bank to manage these portfolios. US Bank may charge clients as much as 0.60% annual management fee based on a sliding scale. US Bank pays HighMark 60% of the annual management fee for assets sub-advised by HighMark under its sub-advisory agreement with US Bank. The 0.36% paid to HighMark, as well as other expenses that may be incurred in the management of the portfolio, will reduce the portfolio’s returns. Assuming an investment for five years, a 5% annual total return, and an annual subadvisory fee rate of 0.36% deducted from the assets at market at the end of each year, a $10 million initial value would grow to $12.53 million after fees (Net-of-Fees) and $12.76 million before fees (Gross-of-Fees). Gross returns are presented before management and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other income. A client's return will be reduced by the advisory fees and other expenses it may incur as a client. Additional information regarding the firm’s policies and procedures for calculating and reporting performance results is available upon request. Performance results are calculated and presented in U.S. dollars and do not reflect the deduction of investment advisory fees, custody fees, or taxes but do reflect the deduction of trading expenses. Returns are calculated based on trade-date accounting.

Blended benchmarks represent HighMark’s strategic allocations between equity, fixed income, and cash and are rebalanced monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but assumes the reinvestment of dividends and other earnings. An investor cannot invest directly in an index. The unmanaged S&P 500 Index is representative of the performance of large companies in the U.S. stock market. The MSCI EAFE Index is a free float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The ICE BofA US High Yield Master II Index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Wilshire REIT index measures U.S. publicly traded Real Estate Investment Trusts. The unmanaged Bloomberg U.S. Aggregate Bond Index is generally representative of the U.S. taxable bond market as a whole. The ICE BofA 1-3 Year U.S. Corporate & Government Index tracks the bond performance of the ICE BofA U.S. Corporate & Government Index, with a remaining term to final maturity less than 3 years. The unmanaged FTSE 1-Month U.S. Treasury Bill Index tracks the yield of the 1- month U.S. Treasury Bill.

HighMark Capital Management, Inc. (HighMark), an SEC-registered investment adviser, is a wholly owned subsidiary of MUFG Union Bank, N.A. (MUB). HighMark manages institutional separate account portfolios for a wide variety of for-profit and nonprofit organizations, public agencies, and public and private retirement plans. MUB, a subsidiary of MUFG Americas Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past performance does not guarantee future results. Individual account management and construction will vary depending on each client’s investment needs and objectives. Investments employing HighMark strategies are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal. 350 California Street
Suite 1600
San Francisco, CA 94104
800.582.4734
www.highmarkcapital.com

HOLDINGS
STYLE
Small Cap

9.2%
Interm-Term Bond

35.9%
High Yield
Short-Term Bond 2.1%

8.5%
Large Cap Core

15.2%
Large Cap Growth

5.9%
Mid Cap

4.2%
Intl Stocks

9.4%
Cash

1.0%
Large Cap Value

6.8%
Real Estate

1.8%
Holdings are subject to change at the
discretion of the investment manager.

HighMark Plus (Active) Index Plus (Passive)
Columbia Contrarian Core I3 iShares Core S&P 500 ETF
Vanguard Growth & Income Adm iShares S&P 500 Value ETF
Dodge & Cox Stock Fund iShares S&P 500 Growth ETF
iShares S&P 500 Value ETF iShares Russell Mid-Cap ETF
Harbor Capital Appreciation - Retirement Vanguard Real Estate ETF T. Rowe Price Growth Stock - I iShares Russell 2000 Value ETF iShares Russell Mid-Cap ETF iShares Russell 2000 Growth ETF Vanguard Real Estate ETF iShares Core MSCI EAFE ETF
Undiscovered Managers Behavioral Value-R6 Vanguard FTSE Emerging Markets ETF Victory RS Small Cap Growth - R6 Vanguard Short-Term Invest-Grade Adm DFA Large Cap International Portfolio iShares Core U.S. Aggregate Dodge & Cox International Stock Vanguard High-Yield Corp Adm MFS International Growth - R6 First American Government Obligations Z Hartford Schroders Emerging Markets Eq
Vanguard Short-Term Invest-Grade Adm
PIMCO High Yield Instl
PIMCO Total Return Fund - Inst
PGIM Total Return Bond - R6
DoubleLine Core Fixed Income - I
First American Government Obligations Z

Solana Beach City CouncilMarch 9, 2022

Solana Beach City Council
March 9, 2022